The Union First Market Bank headquarters in Richmond. (RBS photo)
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.
The StellarOne branch at 11450 Robious Road. (Photo by Michael Schwartz)
“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.
Stay tuned to BizSense for more on this deal.
The Union First Market Bank headquarters in Richmond. (RBS photo)
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.
The StellarOne branch at 11450 Robious Road. (Photo by Michael Schwartz)
“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.
Stay tuned to BizSense for more on this deal.
This is great news in that banks have very little overlap in braches with most StellarOne locations being in west of Richmond, in Western VA and the valleys along 81. They just need to put some branches in the Martinsville/Danville area to fill in the gap. Union has eastern, central and inroads into the suburbs of NOVA. This will make Union a true Virginia bank!
Michael, I would say there is some overlap as Billy spoke about in the Investors call this morning. He mentioned upwards of 10 branches will probably be closed. Also Union is down to 1 NOVA branch after closing 2 branches last year in NOVA. The acquisition of Stellar One doesn’t bring any new branch coverage to NOVA and only one branch in the Hampton Roads area. Still a lot of ground to cover for Union to really be a true VA bank.