Hampton Roads Bankshares Inc. in Norfolk, Va., has sold its insurance business as part of its ongoing effort to reduce overhead and streamline operations.
The $2.6 billion-asset company announced Tuesday that Bankers Insurance LLC of Richmond, Va., had purchased essentially all of the assets and certain liabilities of Gateway Insurance Services Inc.
The deal was valued at $6 million, with Hampton Roads receiving $5.8 million in cash and a 0.45% membership interest in Bankers Insurance valued at $207,000, according to a Securities and Exchange Commission filing.
In June, Hampton Roads announced it was seeking buyers for the insurance unit, along with its Gateway Bank Mortgage Inc., eight bank branches in North Carolina and two branches in Virginia. The company said it is selling those pieces because it wants to cut its costs and focus on community banking in its core markets.
Last month, Hampton Roads struck a deal to sell seven branches and $195 million of deposits to the $917 million-asset ECB Bancorp in Englehard, N.C.
This article was reprinted with the permission of American Banker.
