Organizers of a bank in suburban Vienna announced that they have filed a charter application with the state of Virginia and applied for membership in the Federal Reserve system.
Several of the director-organizers of Sailors & Merchants Bank and Trust once were affiliated with the Bank of Vienna, which was engulfed in an internal board of directors fight that many think made it vulnerable to takeover. Bank of Vienna, whose directors and officers had said they wanted to stay independent, was acquired by Bank of Virginia late last year.
Kenneth D. Duggin said the bank plans to sell 200,000 shares of stock at $20 a share for an initial capitalization of $4 million.
In a prospectus issued last March, the bank's organizers noted that there are no independent banks left in Vienna and said "communities should be able to provide the option of using a smaller, more personal, independent bank."
Chairman Duggin is president of the Self-Service Storage Corp. of Springfield.
The president and chief executive of the bank is H. E. McCarty Jr., who was formerly president of Bank of Vienna. Jackie L. Hayes and Meyer H. Abraham, both board members of the new bank, also were board members of the Bank of Vienna at the time it was acquired.
The board fight at Bank of Vienna was touched off when directors learned that McCarty and several other directors--including Abraham and Hayes--had quietly formed a partnership that bought about 3,000 shares of Bank of Vienna stock in the spring of 1981.
When the board of directors learned of the purchases, the members of the partnership agreed to dissolve their association. But the purchases angered many of those who unknowingly sold the stock to officers and directors of the bank. The Bank of Virginia paid $40 a share to acquire the bank. The partnership, called HGM, paid between $16.75 and $17.50 for each share purchased.
The board was split severely by HGM. The bank's biggest shareholder, Michael Juhasz, said he felt "betrayed" by the HGM purchases and eventually organized nine other investors to sell a 21 percent interest in Bank of Vienna to Bank of Virginia. That sale eventually led to a bidding war for Bank of Vienna that Bank of Virginia won.
The directors and officers who bought the stock without telling other board members said they did so to keep the bank in friendly hands because there was no ready market for stock in the bank that they knew was up for sale.