W.Va. firm will buy Virginia Savings Bank
Five branches in northern valley to stay openBy Joe Beck -- jbeck@nvdaily.com
FRONT ROYAL -- Virginia Savings Bank and its five local branches will be sold to a West Virginia banking firm under an agreement announced by the two companies Monday.
The sale to City Holding Company of Charleston, W.Va., is expected to be completed by late February or March of next year, said W. Michael Funk, president and CEO of Virginia Savings Bancorp, Inc., the parent company of Virginia Savings.
Funk, who has been president and CEO since 1988, said a few of Virginia Savings' 50 employees will have to take new jobs within the company. Those affected will be in the accounting and operations departments where current duties and responsibilities can be handled at City Holding's main office in Charleston, he said.
"Those positions will not continue to exist," Funk said in a phone interview from company headquarters in Front Royal.
"We're talking about eliminating positions, not people," Funk added. "We will look at what positions are available at City National Bank."
Funk said the bank's name will change to City National Bank of Virginia on the date the sale is officially completed. All five branches in Front Royal, Strasburg, Winchester, Woodstock and Stephens City will remain open, he said.
In a news release issued earlier in the week with Funk, Charles R. (Skip) Hageboeck, president and CEO of City Holding Co., said the acquisition of Virginia Savings is an opportunity for his company to break into the fast-growing Virginia market.
He praised Virginia Savings for its "strong roots in the community and our community banking model is a perfect fit. We look forward to building upon (Virginia Savings) tradition of strong customer service and community involvement while bringing additional products and services to both retail and business customers in (Virginia Savings) markets."
City National operates seven of its 68 branches in the Eastern Panhandle of West Virginia and was rated as the No. 3 highest performing bank in the U.S. in 2010, according to Bank Director magazine. The bank's remaining branches are spread across the rest of West Virginia, Ohio and Kentucky.
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