UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
September 26, 1996
Date of Report (Date of earliest event reported)
CENIT BANCORP, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-20378 54-1592546
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation or organization) dentification Number)
225 West Olney Road
Norfolk, Virginia 23510
(Address of principal (Zip code)
executive office)
Registrant's telephone number, including area code: (757) 446-6600
CENIT Bancorp, Inc.
Item 2 - Acquisition or Disposition of Assets
On September 26, 1996, CENIT Bank, a wholly-owned subsidiary of CENIT
Bancorp, Inc. (the "Company") assumed the deposits of four Essex Savings
Bank, FSB ("Essex") branches pursuant to a Branch Purchase and Deposit
Assumption Agreement dated July 2, 1996. As part of this transaction, CENIT
Bank assumed approximately $63 million of deposits, acquired certain other
assets and liabilities, and received approximately $61 million of cash.
CENIT Bank used the majority of the cash proceeds received in connection with
the deposit assumption to reduce its Federal Home Loan Bank of Atlanta
advances.
In connection with this transaction, CENIT Bank has recorded total intangible
assets of approximately $2.6 million. Goodwill totals approximately $2.2
million and will be amortized by the Company on a straight-line basis over 15
years. The core deposit intangible totals approximately $427,000 and will be
amortized by the Company on an accelerated basis over ten years.
CENIT Bank continues to operate the former Essex offices located in Downtown
Hampton, Virginia and in the Denbigh area of Newport News, Virginia. The
deposits associated with Essex's Norfolk and Portsmouth, Virginia offices
have been consolidated into existing CENIT Bank retail offices in those
neighborhoods. CENIT Bank will also acquire the deposits of Essex's Grafton,
Virginia location on or about November 7, 1996. These deposits will be
consolidated into CENIT Bank's Kiln Creek office located in York County,
Virginia. The Grafton office has approximately $5 million of deposits.
Prior to the deposit assumption, there was no material relationship between
Essex and the Company, nor between Essex and any affiliate, director, or
officer of the Company, or any associate of any such director or officer.
Attached hereto as Schedule A is a copy of the news release distributed
September 27, 1996, to local newspapers.
Item 7 - Financial Statements and Exhibits
(C) Exhibits
The Branch Purchase and Deposit Assumption Agreement between CENIT Bancorp,
Inc. and Essex Savings Bank, FSB is incorporated by reference to the Exhibits
to CENIT Bancorp, Inc.'s Form 8-K dated July 9, 1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CENIT BANCORP, INC.
DATE: October 9, 1996 /S/ Michael S. Ives
Michael S. Ives
President and Chief Executive Officer
DATE: October 9, 1996 /S/ John O. Guthrie
John O. Guthrie
Senior Vice President and
Chief Financial Officer
INDEX TO EXHIBITS
Schedule A - September 27, 1996 CENIT Bancorp, Inc. press release E-2 - E-3
E-1
SCHEDULE A
DATE: September 27, 1996
CONTACT: Steven E. Kocen
First Vice President
(757) 446-6600
FOR IMMEDIATE RELEASE
CENIT BANK ANNOUNCES COMPLETION OF DEPOSIT
AND BRANCH TRANSFER FROM ESSEX SAVINGS BANK
(Norfolk, Virginia) - CENIT Bank announced the completion of the four Essex
bank branch and deposit transfers on Thursday, September 26, 1996. The
proposed transfer was first announced on July 3. Beginning today, the
deposits and employees of the transferred branches become CENIT Bank deposits
and employees.
CENIT consolidated two of the Essex offices into existing CENIT locations.
The Essex branch deposits at the Granby Street in Norfolk and High Street
office in Portsmouth will be consolidated into CENIT's Ghent office at 745
Duke Street (Norfolk) and Portsmouth office at 3315 High Street, respectively.
The Essex offices in Downtown Hampton on Settlers Landing Road and the
Denbigh office at 13301 Warwick Boulevard opened as CENIT Bank offices today.
These offices will undergo extensive interior and exterior renovation.
The Settlers Landing office will have a drive-up ATM installed in the fourth
quarter. There is approximately $63 million in deposits in the four offices.
CENIT Bank's Peninsula Headquarters is located in the Kiln Creek area of
Newport News and York County. The bank has five Peninsula offices located in
Hampton on Executive Drive and on Settlers Landing Road (Downtown); Newport
News on Warwick Boulevard, and in York County at Kiln Creek and in the Super
Kmart Center at Kiln Creek. CENIT offers seven day a week banking in the
Super Kmart Center.
The deposits and employees of Essex's Grafton office on George Washington
Highway will transfer to CENIT's Kiln Creek office located at Victory
Boulevard and Commonwealth on November 7. Until that date it will remain
owned and operated as Essex Bank. The Grafton office has approximately $5
million in deposits.
E-2
Michael S. Ives, President and Chief Executive Officer of CENIT Bank, said,
"Our CENIT Bank family welcomes the former Essex customers and employees with
great enthusiasm. We are pleased to have this opportunity to expand our
presence on the Peninsula and to build our deposit base in Norfolk and
Portsmouth. This transaction truly positions CENIT as a super community
bank that can effectively serve the Peninsula and Southside areas of Hampton
Roads. We are a locally managed bank that is committed to the success of the
region. Our wide range of financial products can meet the needs of the
area's consumers and businesses." Ives continued, "We want to be the bank
Hampton Roads depends on for its deposit, mortgage, equity loan and business
needs."
CENIT Bancorp, Inc. (Nasdaq, CNIT) is the parent company of CENIT Bank with
thirteen offices in Norfolk, Portsmouth, Chesapeake, Hampton, Newport News
and York County and Princess Anne Bank with six offices in Virginia Beach.
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E-3
