Fredericksburg, Va.-based Virginia Partners Bank has agreed to buy a 51% stake in Newport News, Va.-based residential mortgage company Johnson Mortgage Co. LLC.
Deal terms were not disclosed in the press release announcing the deal. The transaction will allow Virginia Partners to direct its secondary market loan production through Johnson Mortgage and focus on portfolio loans.
Johnson Mortgage has branches in Newport News and Williamsburg, both in Virginia. It will continue to operate those locations, and it will also run operations out of one of Virginia Partners' Fredericksburg branches. Furthermore, the companies plan to open shared locations in Virginia Partners' La Plata, Md., and Annapolis, Md., branches.
The deal is expected to be effective Jan. 1, 2018.