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Tag: banking

Capital One, Discover clear hurdles for $35.3B megadeal

Announced in February, McLean-based Capital One Financial’s proposed $35.3 billion acquisition of Discover Financial Services is moving forward, with stockholders’ votes scheduled early next year, the credit card giants announced this week.

Capital One also announced Thursday it received approval from the Office of the Delaware State Bank Commissioner on Wednesday to complete the purchase of Discover Financial Services and its subsidiary, Discover Bank, a Delaware-chartered bank. On Tuesday, both companies said special stockholders’ meetings are scheduled Feb. 18, 2025, to allow holders of Discover and Capital One common stock to vote at their company’s respective meeting to approve the deal.

According to Thursday’s news release, Capital One expects the transaction to close in early 2025, pending approval by both banks’ stockholders and approval by the Federal Reserve Board of Governors.

The all-stock acquisition, Capital One’s largest ever purchase, has been under regulatory scrutiny. Two Capital One cardholders filed a federal class action lawsuit against Discover and Capital One in July, claiming the megadeal would violate antitrust law, but the case was paused in October, pending further action by the U.S. District Court for the Eastern District of Virginia. In July, Capital One committed to spend $265 billion over five years to lending, philanthropy and investment if the deal goes through.

New York Attorney General Letitia James also launched an investigation to determine whether the acquisition violates the state’s antitrust laws, and in October, she asked a state judge to subpoena Capital One for documents she said she needed for her probe, Reuters reported. However, following President-elect Donald Trump’s victory in November, shares of Discover and Capital One jumped, as investors appeared to have greater faith that the deal would go through under his administration.

A Fortune Global 500 company, Capital One had $353.6 billion in deposits and $486.4 billion in total assets as of Sept. 30.

VACUL to merge with regional credit union group Jan. 1

Members of the Virginia Credit Union League and the League of Southeastern Credit Unions & Affiliates voted Thursday to approve the Virginia league’s consolidation with the regional organization. The merger will be in effect Jan. 1, 2025, the two organizations announced Friday.

“Thanks to the support of the membership, we are embracing a powerful opportunity to strengthen credit union engagement and our collective advocacy impact,” Jeff Bentley, VACUL board chair and president and CEO of Northwest Federal Credit Union, said in a statement. “We are now positioned to provide more customized services, innovative solutions and a stronger voice for our members.”

Announced in September, the consolidated group will represent 386 credit unions and 31.5 million members in Alabama, Florida, Georgia and Virginia.

LSCU President Samantha Beeler will lead the association, and the combined service corporation would be led by Steve Willis, president of Leverage, which encompasses 12 companies and more than 30 partnerships in the credit union industry. Beeler and Willis were named in April as dual executive leaders of LSCU, which represents nearly 300 credit union members with almost $200 billion in assets and 12.4 million members.

“We are elated to bring together the best of both legacy organizations to provide greater value for our members and the communities they serve,” Beeler said. “Together, we will be a powerful voice and resource in supporting and growing credit unions across our expanded region.”

Navy Federal ordered to refund customers $80M, pay $15M civil penalty

The Consumer Financial Protection Bureau is ordering Navy Federal Credit Union to refund more than $80 million to customers and pay a $15 million civil penalty for allegedly charging illegal overdraft fees.

CFPB announced the actions against the nation’s largest credit union on Thursday. CFPB alleges that from 2017 to 2022, Vienna-based Navy Federal charged customers surprise overdraft fees on certain ATM withdrawals and debit card purchases, despite their accounts showing sufficient funds at the transaction times.

The $15 million civil penalty will go to CFPB’s victims relief fund, called the Civil Penalty Fund. According to a CFPB news release, the penalty is the largest that CFPB has levied against a credit union for illegal overdraft fees.

“Navy Federal fully cooperated with the CFPB’s investigation and we will continue to comply with all applicable laws and regulations, just as we always have and as we believe we did here,” The credit union said in a statement. “Nevertheless, this settlement enables us to focus on serving our members and their families. As a member-owned, not-for-profit credit union, we are focused on putting our members first.”

Additionally, the credit union stated, “over the past several years, Navy Federal has continued to comply with evolving expectations — including by automatically refunding certain overdraft fees since January 2023.” It will also eliminate “nonsufficient fund fees” for personal checking accounts in the first quarter of 2025, a reform it announced in October.

As of Sept. 30, Navy Federal had $180 billion in assets. The credit union has 360 branches, more than 14 million members and about 24,000 employees.

“Navy Federal illegally harvested tens of millions of dollars in junk fees, including from active-duty service members and veterans,” CFPB Director Rohit Chopra said in a statement. “The CFPB’s work to rid the market of illegal junk fees has saved American families billions of dollars.”

The CFPB said in a news release it found that Navy Federal violated the Consumer Financial Protection Act through charging surprise overdraft fees on purchases made with sufficient funds in consumers’ accounts at the transaction times and by charging overdraft fees resulting from delayed peer-to-peer payments that had undisclosed processing times.

Through its Optional Overdraft Protection Service, Navy Federal charged consumers $20 for most overdraft transactions and collected nearly $1 billion in overdraft fees from 2017 to 2021, according to the CFPB.

According to the CFPB, Navy Federal charged customers overdraft fees if a customer’s account had a negative balance once a transaction posted, although the account had had enough money to cover the transaction when the consumer made it. The credit union collected an average of $44 million annually in these fees, the CFPB alleges.

Navy Federal, the CFPB alleges, also charged overdraft fees when customers tried to use funds from payment services like Zelle, PayPal and Cash App that showed in Navy Federal systems as immediately available to spend but were still processing. The credit union did not disclose that payments received after 10 a.m. Eastern time initially, and later after 8 p.m. EST, wouldn’t post until the next business day. Navy Federal collected at least $4 million from these fines, according to the CFPB.

“We will continue to support and invest in our members — including the military, veterans and their families — to help them meet their financial goals,” Navy Federal said in a statement.

Atlantic Union to buy Maryland’s Sandy Spring Bank for $1.6B

Atlantic Union Bank is expanding further into Northern Virginia and Maryland with the $1.6 billion purchase of Maryland’s Sandy Spring Bank, an acquisition announced Monday.

The two banks’ parent companies, Atlantic Union Bankshares and Sandy Spring Bancorp, have entered into a merger agreement that would create a combined bank with $39.2 billion in assets as of Sept. 30, they said in a news release.

Based in Olney, Maryland, Sandy Spring had $14.4 billion in assets, $11.7 billion in total deposits and $11.5 billion in total loans as of Sept. 30, and it has 53 branch offices in Maryland and Northern Virginia. Upon completion of the deal, Richmond-based Atlantic Union will have total deposits of $32 billion and gross loans of $29.8 billion, according to Monday’s statement.

Sandy Spring also has two wealth management subsidiaries, Rembert Pendleton Jackson and West Financial Services, that will be part of the acquisition, and will approximately double Atlantic Union’s wealth management business, increasing its assets under management by more than $6.5 billion.

“At our 2018 investor day, I noted that part of our long-term vision was to complete the ‘Golden Crescent’ from Baltimore through Washington, D.C., and Richmond to Hampton Roads, and recreate a banking franchise that had not existed since the 1990s,” John C. Asbury, Atlantic Union’s president and CEO, said in a statement. “With today’s announcement of our partnership with Sandy Spring, Atlantic Union will create a preeminent regional bank, with Virginia as its linchpin, that spans the lower mid-Atlantic into the Southeast and that is committed to the communities it serves.”

By deposit market share in the state as of June 30, Sandy Spring Bank is the largest regional bank in Maryland and the seventh largest in the state overall. By deposit market share in Virginia as of June 30, Atlantic Union Bank is Virginia’s largest regional bank and its fifth largest bank overall.

Under the terms of the merger agreement, each outstanding share of Sandy Spring common stock will be converted into the right to receive 0.9 shares of Atlantic Union common stock, a value of about $34.93 per Sandy Spring common share, based on Atlantic Union’s closing stock price on Oct. 18.

Both banks’ boards have approved the agreement, and the banks expect to complete the transaction by the end of the third quarter of 2025, they said in a statement.

Monday’s announcement follows Atlantic Union’s acquisition of Danville’s American National Bank and Trust, which was completed in April. The $507 million deal was announced in July 2023.

Atlantic Union has 129 branches throughout Virginia and in parts of North Carolina and Maryland, according to Monday’s announcement.

In terms of potential consolidation of Virginia branches, Asbury said during a virtual press conference: “Where we see overlap, we have identified potentially five locations in Northern Virginia that would be candidates for consolidation simply because of their very close proximity,” but said it would be premature to provide details on those locations.

Additionally, he said, “We would anticipate retaining 100% of all branch personnel. The branch network in the area is large enough to absorb them.”

Branches wouldn’t close until after systems are converted post-merger, which would likely be the first quarter of 2026, said Bill Cimino, senior vice president and director of investor relations for Atlantic Union.

The bank is also planning to open three branches — one in Baltimore, one in Prince George’s County, Maryland, and one in Prince William County — but does not yet have specifics as it needs to assess location options, Asbury said.

“Our partnership with Atlantic Union is the right long-term decision for our shareholders, clients and employees. This combination will deliver enhanced scale, diversity in the market, and capabilities for our clients, and it will provide greater opportunities for our employees to grow within a larger organization,” Daniel J. Schrider, Sandy Spring’s chair, president and CEO, said in a statement. “Sandy Spring Bank and Atlantic Union Bank share a people-first approach to doing business and serving our communities, and together we will add even greater value to the individuals, families and businesses we serve across our expanded footprint.”

Schrider and two other Sandy Spring board members will join Atlantic Union’s board upon closing of the transaction.

TowneBank to acquire Village Bank for $120M

Suffolk-based TowneBank has signed a definitive agreement to acquire Midlothian’s Village Bank and its parent company, Village Bank and Trust Financial, a deal worth approximately $120 million, the banks announced Tuesday.

“Our TowneBank family is humbled and excited to partner with Village Bank and its team members,” TowneBank Executive Chairman G. Robert Aston Jr. said in a statement. “We believe our partnership can bring additional products and expanded services to the clients of Village Bank while meaningfully enhancing our Richmond presence, which is core to our franchise and future growth.”

The merged companies will have total assets of $17.8 billion, $14.9 billion in deposits and $12.1 billion in loans, based on financial information reported as of June 30.

Shareholders of the Village Bank parent will receive $80.25 in cash per share for each share of its outstanding common stock. Based on Village Bank and Trust Financial’s common stock currently outstanding, the total transaction value would be about $120 million.

“We’re excited to partner with TowneBank,” Jay Hendricks, president and CEO of Village Bank, said in a statement. “This merger is not just a business decision but a strategic move to enhance the value we deliver to our customers.”

The boards of directors of TowneBank and the Village parent have approved the definitive agreement. The transaction is expected to close in the first half of 2025, pending regulatory approval and Village shareholders’ approval.

Founded in 1999, TowneBank has more than 50 locations across Central and Eastern Virginia and North Carolina. As of June 30, it had $17.1 billion in total assets.

Village Bank was also founded in 1999. It has nine branch offices serving the greater Richmond area and Williamsburg. As of June 30, parent company Village Bank and Trust Financial had total assets of $747.7 million.

Chain Bridge Bancorp plans to go public

Chain Bridge Bancorp, the McLean holding company for Chain Bridge Bank, National Association, is planning to go public.

On Friday, the company filed a registration statement with the Securities and Exchange Commission for a proposed initial public offering of Class A common stock. The number of shares and price range for the IPO have not yet been set.

The proposed offering would start “as soon as practicable after the registration statement is declared effective,” according to the company’s SEC filing. Chain Bridge shares would trade on the New York Stock Exchange under the ticker CBNA.

As of June 30, Chain Bridge had $1.4 billion in assets and $1.3 billion in total deposits. Chain Bridge had deposit clients in 48 states, Washington, D.C., the U.S. Virgin Islands and Puerto Rico. About 38% of its total deposits came from Washington, D.C., and about 32% came from Virginia.

Chain Bridge Bancorp first announced it was evaluating an IPO in May. According to Friday’s SEC filing, the company would use the net proceeds from the proposed IPO to repay an outstanding balance of $10 million on an unsecured line of credit with another bank that is scheduled to mature on Dec. 5 and “for general corporate purposes,” which could include “funding potential strategic expansion.”

Chain Bridge Bancorp was incorporated in May 2006, and the bank opened in August 2007. Its CEO, John Brough, joined the company in July 2006 and became founding CEO of the bank in August 2007.

Piper Sandler & Co., Raymond James & Associates and Hovde Group are the book-running managers for the IPO.

In June 2020, California medical supply company Blue Flame Medical sued Chain Bridge, alleging the bank was responsible for destroying the company’s reputation and making it lose a $600 million state contract for personal protective equipment. In March 2023, a panel of the U.S. 4th Circuit Court of Appeals affirmed the U.S. District Court for the Eastern District of Virginia’s ruling in favor of Chain Bridge.

VACUL announces intent to merge with regional group

The Virginia Credit Union League has signed a letter of intent to consolidate with the League of Southeastern Credit Unions & Affiliates, the trade organization representing credit unions in Alabama, Florida and Georgia.

Virginia credit unions will decide this fall whether to merge VACUL’s associations, foundations and service corporations with those of the LSCU, with results set to be announced in November, according to VACUL’s announcement Tuesday. If successful, the merger will create an organization representing 386 credit unions and 31.5 million members that would be led by LSCU President Samantha A.M. Beeler, and the combined service corporation would be led by Steve Willis, president of Leverage, which encompasses 12 companies and more than 30 partnerships in the credit union industry. Beeler and Willis were named in April as dual executive leaders of LSCU, which represents nearly 300 credit union members with almost $200 billion in assets and 12.4 million members.

VACUL, a state trade association, represents 98 credit unions in Virginia. The league offers training and operation resources for members and also lobbies the state legislature and other governmental bodies on behalf of the industry.

“With advocacy being at the core of our focus as an association and board, we believe this move to be in the best interest of credit unions as it will undoubtedly increase our advocacy impact and influence,” Jeff Bentley, VACUL board chair and president and CEO of Northwest Federal Credit Union, said in a statement. “We look forward to continuing our due diligence to identify a path forward that will be beneficial to all Virginia credit unions.”

According to Credit Union Times, this is the first proposed merger of state leagues since 2022.

In February, Carrie Hunt left VACUL as its president and CEO, and Chief Operating Officer Karima Freeman stepped in on an interim basis.

NextMark Credit Union President and CEO Joe Thomas, who chairs the VACUL Transition Committee, added, “While we seek member feedback during this discovery phase, we remain committed to advancing our collective industry and serving our members with greater impact. We believe the Virginia Credit Union League and the League of Southeastern Credit Unions share the same vision for success for credit unions.”

This announcement comes after the Virginia Bankers Association and the Maryland Bankers Association merged in July, creating the Mid-Atlantic Bankers Association holding company headquartered in Glen Allen.

Virginia 500: The 2024-25 Power List

Who are Virginia’s most powerful and influential leaders in business, government, politics and education this year? Find out in the fifth annual edition of the Virginia 500: The 2024-25 Power List.

Read more about how we assembled the Virginia 500 from our editor. 

Executives are listed in alphabetical order by industry.

Below you will find links to each of the 21 categories featuring the state’s top leaders this year:

2024 Virginia 500: Banking | Finance

JOHN C. ASBURY

CEO, ATLANTIC UNION BANKSHARES, RICHMOND

 

 

G. ROBERT ASTON JR.

EXECUTIVE CHAIRMAN, TOWNEBANK, SUFFOLK

 

 

VIKRAM ‘VIK’ ATAL

PRESIDENT AND CEO, PRA GROUP, NORFOLK

 

 

THOMAS I. BARKIN

PRESIDENT AND CEO, FEDERAL RESERVE BANK OF RICHMOND, RICHMOND

 

 

JEFF BENTLEY

PRESIDENT AND CEO, NORTHWEST FEDERAL CREDIT UNION, HERNDON

 

 

LAWRENCE ‘LARRY’ BERNERT III

SENIOR MANAGING DIRECTOR, CLEARSTEAD ADVISORY SOLUTIONS, NORFOLK

 

 

VICTOR K. BRANCH

RICHMOND MARKET PRESIDENT, BANK OF AMERICA, RICHMOND

 

 

STEPHAN Q. CASSADAY

FOUNDER, CHAIRMAN AND CEO, CASSADAY & CO., McLEAN

 

 

CastellanosFRANCISCO ‘FRANK’ CASTELLANOS

GREATER WASHINGTON MARKET EXECUTIVE, MERRILL WEALTH MANAGEMENT, WASHINGTON, D.C.

 

 

TRISTAN CAUDRON

MANAGING PARTNER, RIVERFRONT WEALTH ADVISORS, ALEXANDRIA

 

 

THEODORE L. ‘TED’ CHANDLER JR.

CO-FOUNDER AND MANAGING DIRECTOR, NRV, RICHMOND

 

 

LAWRENCE ‘LARRY’ DI RITA

GREATER WASHINGTON, D.C., MARKET PRESIDENT, BANK OF AMERICA, WASHINGTON, D.C.

 

 

RICHARD FAIRBANK

CO-FOUNDER, CHAIRMAN AND CEO, CAPITAL ONE FINANCIAL, McLEAN

 

 

GWEN FAW

REGIONAL DIRECTOR FOR GREATER VIRGINIA, WELLS FARGO, ROANOKE

 

 

MARK A. FRANTZ

CO-FOUNDER AND GENERAL PARTNER, BLUE DELTA CAPITAL PARTNERS, McLEAN

 

 

JEFF GRINSPOON

MANAGING DIRECTOR AND PARTNER, VWG WEALTH MANAGEMENT, A HIGHTOWER COMPANY, VIENNA

 

 

SIMON R.B. HAMILTON

MANAGING DIRECTOR AND PORTFOLIO MANAGER, THE WISE INVESTOR GROUP OF RAYMOND JAMES, RESTON

 

 

CECILIA A. HODGES

EXECUTIVE VICE PRESIDENT AND REGIONAL PRESIDENT FOR GREATER WASHINGTON AND VIRGINIA, M&T BANK, VIENNA

 

 

BRIAN HOLLAND

FOUNDER AND CEO, ATLANTIC BAY MORTGAGE GROUP, VIRGINIA BEACH

 

 

MICHAEL T. HUTCHINS

PRESIDENT AND INTERIM CEO, FREDDIE MAC, McLEAN 

 

 

D. JERMAINE JOHNSON

JERMAINE JOHNSON

REGIONAL PRESIDENT FOR GREATER WASHINGTON, D.C., AND VIRGINIA, PNC FINANCIAL SERVICES GROUP, VIENNA

 

 

DIETRICH KUHLMANN

PRESIDENT AND CEO, NAVY FEDERAL CREDIT UNION, VIENNA

 

 

EVELYN LEE

GREATER WASHINGTON AND MARYLAND REGIONAL PRESIDENT, TRUIST FINANCIAL, WASHINGTON, D.C.

 

 

SHANE McLAUGHLIN

NORTHERN VIRGINIA REGION EXECUTIVE, WELLS FARGO, McLEAN

 

 

JOSEPH W. ‘JOE’ MONTGOMERY

MANAGING DIRECTOR, INVESTMENTS, THE OPTIMAL SERVICE GROUP OF WELLS FARGO ADVISORS, WILLIAMSBURG

 

 

NIGEL MORRIS

CO-FOUNDER AND MANAGING PARTNER, QED INVESTORS, ALEXANDRIA

 

 

TYRONE NOEL

HAMPTON ROADS MARKET PRESIDENT, BANK OF AMERICA; GREATER VIRGINIA MARKET EXECUTIVE, MERRILL LYNCH WEALTH MANAGEMENT, WILLIAMSBURG

 

 

THOMAS RANSOM

REGIONAL PRESIDENT FOR VIRGINIA, TRUIST FINANCIAL, RICHMOND

 

 

FRANK ROTMAN

CO-FOUNDER, PARTNER AND CHIEF INVESTMENT OFFICER, QED INVESTORS, MANAKIN-SABOT

 

 

TOM RYAN

PRESIDENT AND CEO, LANGLEY FEDERAL CREDIT UNION, NEWPORT NEWS

 

 

 

FREDRICK D. SCHAUFELD

MANAGING DIRECTOR AND CO-FOUNDER, SWAN & LEGEND VENTURE PARTNERS, LEESBURG

 

 

JAMES SCHENCK 

PRESIDENT AND CEO, PENTAGON FEDERAL CREDIT UNION, TYSONS

 

 

CHRISTOPHER M. ‘CHRIS’ SHOCKLEY

PRESIDENT AND CEO, VIRGINIA CREDIT UNION, RICHMOND

 

 

JEAN STACK

MANAGING DIRECTOR OF GLOBAL INVESTMENT BANKING GROUP AND CO-HEAD OF DEFENSE AND GOVERNMENT INVESTMENT BANKING, ROBERT W. BAIRD & CO., TYSONS

 

 

HANS VonKRUGER

HAMPTON ROADS MARKET EXECUTIVE AND SENIOR VICE PRESIDENT, BANK OF AMERICA, VIRGINIA BEACH

 

 

WAYNE F. WILBANKS

EXECUTIVE MANAGING DIRECTOR, CLEARSTEAD ADVISORY SOLUTIONS, NORFOLK

 

 

JAFFRAY WOODRIFF

CO-FOUNDER AND CEO, QUANTITATIVE INVESTMENT MANAGEMENT, CHARLOTTESVILLE

Community banking association head Yeakel to retire; successor named

Steve Yeakel, president and CEO of the Henrico County-based Virginia Association of Community Banks, announced Tuesday he will retire at the end of the year, and will be succeeded by Corey Connors, executive director of the Virginia Forestry Association.

Connors will join the professional organization in September and assume duties as president and CEO of VACB beginning Oct. 8, according to a news release. Founded in 1977, VACB represents more than 100 community banks and vendor partners. Yeakel departs the organization after 13 years, 12 of which he spent as VACB’s leader.

“Corey’s strategic drive and his long, distinguished career in the association management community make him the perfect choice to further define the VACB’s value proposition, expand its professional development programs, and engage a new generation of community bankers,” VACB Chair Joseph Witt said in a statement. “We’re thrilled to welcome Corey aboard.”

Corey Connors

Connors was executive director of the forestry association for nearly five years and was responsible for its direction and annual budget, and before, he served in senior management positions at several other state and national associations, according to Tuesday’s announcement.

“I am excited to join VACB,” Connors said. “Having advocated on behalf of small businesses throughout my entire career, I understand the importance of community banks as the lifeblood of local cities and towns across Virginia. I look forward to working with the board, staff and key stakeholders to uphold the organization’s strong priorities while expanding VACB’s reach.”

VACB advocates for smaller community banks, many of which are merging or being acquired by larger banks in recent years, and representing their interests in state and federal legislature.