ODNB Financial Corp. and National Capital Bancorp, Inc., (NACB) announced that they have entered into a definitive merger agreement pursuant to which NACB will merge into ODNB, with ODNB surviving as the bank holding company.
ODNB is the holding company for Old Dominion National Bank and NACB is the holding company of The National Capital Bank of Washington. With the merger, ODNB will add National Capital Bank’s residential mortgage and commercial lending offices to its roster, as well as the bank’s wealth management services division.
As of March 31, ODNB had $1.6 billion in total assets and NACB had $735.3 million in total assets, according to the release.
The combined holding company, which will be named National Capital Bancorp, Inc., expects to list its common stock on Nasdaq or the New York Stock Exchange and trade under the ticker symbol “NACB.”
Old Dominion National Bank will merge with and into National Capital Bank, with National Capital Bank surviving as the wholly owned subsidiary bank. In Pennsylvania, Centre 1st Bank will continue as a division of the combined bank.
NACB Chairman and CEO Richard (Randy) Anderson, Jr. will serve as non-executive Chairman of the Boards of the combined holding company and combined bank. ODNB Chairman and CEO Mark Merrill will serve as CEO of the combined holding company and combined bank. He will also serve as the president of the combined bank.
ODNB President Jack Infield will serve as president of the combined holding company. The combined company’s board of directors will have 17 directors, consisting of 10 directors from ODNB and seven directors from NACB.
“This strategic combination creates a strong and promising future for our organization, our customers and our shareholders,” Merrill said. “NACB brings one of the strongest deposit bases in the Washington, D.C., region, which complements ODNB’s best-in-class growth rate. I am also very pleased that Randy Anderson will serve as chairman of the combined company and bank. Randy and I have known each other for more than a dozen years and have worked together in the past. We share the same philosophy and values, and we believe that bringing our teams together as one company will be a meaningful step forward for both organizations..”
“ODNB and NACB are community-focused organizations with similar cultures and a shared commitment to customers,” Anderson added. “This merger brings together two strong teams dedicated to exceptional client service, lasting relationships and helping individuals and businesses achieve their financial goals. The combined bank will remain committed to the relationships we have built over many decades of service to our communities.”
Anderson went on to describe how the combined institution will benefit from greater scale, expanded resources, higher loan limits and a broader geographic reach in terms of customer service and employee career support while also deepening the company’s presence in existing markets and future expansion efforts into new ones.