Carter bank to form holding company - Mount Airy News

Carter bank to form holding company - Mount Airy News


Carter bank to form holding company - Mount Airy News

Posted: 25 Jul 2020 10:03 AM PDT

MARTINSVILLE, VA — Carter Bank & Trust announced last week its intent to form a bank holding company, subject to regulatory approval.

If approved, the bank would become a subsidiary of the newly-formed bank holding company. Current shareholders of the bank would become shareholders of the newly-formed bank holding company and current shareholders will have the same rights and ownership percentage in the new holding company as they have in the bank, the company said.

"The bank's board of directors believes this new corporate structure will provide added financial and operational flexibility for the bank, is an integral part of the continued growth and prosperity of the bank, and is in the best interests of the bank's shareholders," said James W. Haskins, chairman of the board of the bank.

Litz H. Van Dyke, chief executive officer said: "These are times of tremendous uncertainty in the banking industry due to the impact of COVID-19. The formation of the holding company will provide more efficient access to capital markets if the need arises and will create flexibility in the overall capital structure of our organization. We believe that forming a holding company now will put Carter Bank in the best position to respond to evolving market conditions and to take advantage of future opportunities as they arise."

"The holding company formation will not impact the bank's operations; the bank will continue to provide its full range of financial services comprised of retail, commercial banking and insurance products," the company said in a statement.

While the company did not specifically say what other directions the holding company might go, a holding company has a wider array of business options in can pursue compared to a bank.

The bank's headquarters will remain in Martinsville, Virginia, as will the new holding company. Carter Bank and Trust has branches in several markets, including Mount Airy, Hillsville, Virginia, and Stuart, Virginia.

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