More than a dozen bank branches across the state – including two that recently opened in the Richmond market – are set to close next year as a result of the year’s biggest local banking deal.
Union First Market Bank has picked 13 Virginia branches that will be shut down after its pending deal to acquire StellarOne Bank is finalized, which is expected to happen in early 2014. The locations involve both Union and StellarOne sites and are scheduled to go dark in May.
On the closure list are local StellarOne branches at Patterson Avenue and Robious Road. The Christiansburg bank opened the locations within the past 14 months as part of a rapid expansion into the Richmond market.
Union disclosed the consolidations in its third quarter earnings report released this week. It chose the 13 branches in spots where both banks had locations. The operations in each location are being consolidated to nearby branches of either Union or StellarOne.
“Those we looked at were branches within a mile or two miles from each other,” said Union spokesman Bill Cimino. “From there we looked not only location, but visibility, signage [and] how convenient it is to get in and get out.”
In addition to the two in Richmond, the list includes five branches in the Fredericksburg region, two in the western part of the state and two around Charlottesville.
Doing away with overlap will contribute to $28 million in savings the banks expect as a result of the acquisition.
The move will give the combined bank 133 branches across the state with a territory that covers Richmond, Fredericksburg and Charlottesville and extends west to Roanoke, Blacksburg and Staunton.
The resulting institution will have $7 billion in assets and will be the largest community bank headquartered in Virginia. It will retain the Union name and its headquarters in downtown Richmond.
Most of the 13 locations to be closed are owned by one of the banks and will eventually be put on the market for sale, Cimino said.
Customers of the selected branches will be given 90 days notice before the closure date and directed to the nearest branch.
The StellarOne branch at Patterson and Libbie avenues will be consolidated into Union’s Willow Lawn branch at 1601 Willow Lawn Drive. The operations of StellarOne’s location at 11450 Robious Road, which it acquired this year from Village Bank, will be consolidated to Union’s branch at 11101 Midlothian Turnpike.
Union’s acquisition of StellarOne remains on track to close around Jan. 1, the bank said this week.
One of the final hurdles for the deal is gaining approval from shareholders of both banks. A vote has been set for Dec. 5 at Union’s operations center in Ruther Glen.
The boards of both companies have already voted in favor of the deal. State and federal regulators gave it their blessing last week.