Union First Market Bank agreed last week to buy back more than 335,000 shares of the bank’s stock from Jim Ukrop, one of its largest shareholders, for $4.36 million.
Union bought 335,649 shares from Ukrop for $13 each Feb. 2. The bank said in an SEC filing that Ukrop used the shares as collateral on a loan for a construction project.
Ukrop said in an email to BizSense that the money will be used to pay down the principal on a loan for Ginter Place, a condominium project in the former Richmond Memorial Hospital building on Westwood Avenue.
As part of the merger, Ukrop and other members of his family became major shareholders in the combined bank.
Ukrop still owns a major chunk of Union — 874,000 shares — and is still on the Union board.
Markel Corp. is Union’s largest single shareholder.