Union First Market Bank has closed on its acquisition of a bank branch in Harrisonburg.
As part of the deal first announced in December, Union’s holding company, Union First Market Bankshares, purchased control of a branch from NewBridge Bank, as well as about $50 million in deposits and $72 million in loans.
Union also gets a parcel of land in Waynesboro that was previously owned by NewBridge. That real estate will eventually be built out for a branch.
The Harrisonburg location is Union’s 92nd branch. It also has another seven on the way thanks to a deal it announced in February to build out in-store branches in Martin’s grocery stores in the western part of Virginia.
The bank has said that expansion through branch acquisition allows it to enter new markets quickly and more profitably because it has a built-in customer base and revenue streams. Building a branch and a market presence from scratch can take years to reach profitability.
Union previously said it was paying market value for the branch site and it paid book value for the loan portfolio.
Regulatory approval had to be obtained before the deal could close.
The deal came about after NewBridge, a $2 billion bank based in Greensboro, N.C., decided to exit the Virginia market. NewBridge is the result of a 2007 merger of FNB Financial Services Corp. and LSB Bancshares. The Harrisonburg branch was NewBridge’s only remaining Virginia office.
Union said it has retained NewBridge’s commercial loan team from the Harrisonburg branch, as well as all of its employees.
Union also recently confirmed that it is moving its downtown corporate headquarters from the Turnin Basin building to James Center.
Union First Market Bank has closed on its acquisition of a bank branch in Harrisonburg.
As part of the deal first announced in December, Union’s holding company, Union First Market Bankshares, purchased control of a branch from NewBridge Bank, as well as about $50 million in deposits and $72 million in loans.
Union also gets a parcel of land in Waynesboro that was previously owned by NewBridge. That real estate will eventually be built out for a branch.
The Harrisonburg location is Union’s 92nd branch. It also has another seven on the way thanks to a deal it announced in February to build out in-store branches in Martin’s grocery stores in the western part of Virginia.
The bank has said that expansion through branch acquisition allows it to enter new markets quickly and more profitably because it has a built-in customer base and revenue streams. Building a branch and a market presence from scratch can take years to reach profitability.
Union previously said it was paying market value for the branch site and it paid book value for the loan portfolio.
Regulatory approval had to be obtained before the deal could close.
The deal came about after NewBridge, a $2 billion bank based in Greensboro, N.C., decided to exit the Virginia market. NewBridge is the result of a 2007 merger of FNB Financial Services Corp. and LSB Bancshares. The Harrisonburg branch was NewBridge’s only remaining Virginia office.
Union said it has retained NewBridge’s commercial loan team from the Harrisonburg branch, as well as all of its employees.
Union also recently confirmed that it is moving its downtown corporate headquarters from the Turnin Basin building to James Center.