THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, April 19, 1996 TAG: 9604190647
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY TOM SHEAN, STAFF WRITER
LENGTH: Short : 45 lines
In the latest round of branch transfers in Hampton Roads, James River Bankshares Inc. said its Bank of Suffolk subsidiary bought a branch in the Crittenden area of northern Suffolk from Central Fidelity Bank.
The purchase, for about $265,000, included only the fixed assets of the Central Fidelity office. James River Bankshares said it expects the branch to open under the Bank of Suffolk name about June 1.
In addition, James River said its First Colonial Bank subsidiary in Hopewell purchased the fixed assets of a NationsBank branch in Hopewell and an adjacent parking lot. That branch will open under the First Colonial name in mid-May, the company said.
Some of the state's larger banks, including NationsBank, First Union National Bank and Crestar Bank, have been selling or closing branches, especially in less populated areas, that no longer meet their targets for branch profitability.
James River, the Suffolk-based parent of three commercial banks and a thrift operating in communities between Suffolk and the Richmond suburbs, has said it plans to expand in these markets, partly by buying branches from larger, statewide banks.
In March, the company's James River Bank subsidiary in Waverly bought two branches in Franklin and Courtland and $34 million of deposits from Roanoke-based First Union National Bank. The latest purchases brought the number of branches within the James River Bankshares network to 18.
Separately, Essex Bancorp Inc. in Virginia Beach said its Essex Savings Bank subsidiary agreed to sell three North Carolina branches in Greensboro, Wilmington, and Raleigh to Centura Bank of Rocky Mount, N.C.
The purchase, which still must be approved by bank regulators, will include about $77 million of deposits. Essex said it expects to complete the transaction this summer.
Essex, which has been restructuring operations to restore its profitability, agreed earlier this year to sell an Essex Savings branch in Charlotte, N.C. by CNB