In early editions of the March 14 Business Finance section, the market value of Virginia First's proposed acquisition of Family Savings and Loan was incorrect. Based on Virginia First stock, trading at about $26 a share before a three-for-one split, the transaction would be valued at about $2.16 million, as reported in later editions.
The trend toward consolidation in Virginia's savings and loan industry continued this week with an announcement that Family Savings and Loan of Springfield will be acquired by a Petersburg S&L company.
Virginia First Savings and Loan reached an agreement in principle to buy Family S&L in an exchange of stock that offers a slight premium for current owners of the Northern Virginia institution.
Under terms of the agreement, Virginia First will exchange 1.375 shares of its stock -- after a three-for-one split of the Petersburg S&L has been accomplished -- for each of the 180,000 Family shares outstanding.
Virginia First has been trading recently at $26 a share (it was $28.50 last month), indicating a per-share value of $8.60 or more after the three-for-one split. With an exchange of 1.375 shares for each Family S&L share, that would indicate an exchange rate of about $12 -- somewhat higher than Family's recently quoted price of $6.50-$7.50 in the over-the-counter market.
Last month, Family's book value per share was listed at $7.51 while Virginia First's book value at the end of 1978 was $31.47 a share. The total value of the transaction would be in the neighborhood of $2.16 million.
Virginia First has assets of some $210 million, with 10 branches in the Richmond and Petersburg areas and additional offices in Ashland, Chester, Colonial Heights, Hopewell and Emporia. Family, founded here in mid-1973, has assets of about $40 million at three offices -- Springfield, Annandale and Fairfax.