Richmond’s biggest bank is about to get a lot bigger.
Union First Market Bank on Monday announced a deal to acquire Christiansburg-based StellarOne Bank and its parent company in a deal valued at about $445 million. The combination would create an institution with more than $7 billion in assets and bring together a pair of competitors that are two of the largest community banks in Virginia.
The combined company will retain the Union name and keep its corporate headquarters in downtown Richmond.
Union chief executive Billy Beale will be chief executive of the bank and its holding company once the deal closes. Union’s current management team will continue in place, the companies said.
“We are excited about the opportunity to bring our organizations together and establish the next great Virginia bank,” Beale said in a prepared statement.
StellarOne president and chief executive O.R. Barham Jr. will retire upon closing of the deal, which is expected in early 2014.
As announced by the companies this morning, StellarOne shareholders will receive 0.97 shares of Union common stock for each of their StellarOne shares. Union’s stock closed Friday at $20.02.
StellarOne has expanded rapidly into Richmond, taking on three locations in the area in the past 14 months. It leased a former BB&T branch at the corner of Libbie and Patterson avenues in April 2012. In January, it began renovations at a property in the Far West End at 9605 Gayton Road. And in April it opened its first Chesterfield location at 11450 Robious Road.