2 local bank deals get thumbs up from regulators

xenith-union

Union plans to acquire Xenith in a $700 million all-stock deal.

Two acquisitions that will further change the face of the Richmond banking market are a step closer to the closing table.

The pending marriages of Union Bank & Trust and Xenith Bank, along with Bank of McKenney and Citizens Community Bank, received the stamp of approval from state and federal regulators in recent days.

Both deals required the go-ahead from the Virginia Bureau of Financial Institutions and the Federal Reserve Bank. Shareholder approval is still needed and the deals will be put to a vote in coming weeks.

The Union-Xenith deal, announced in May, will create a $12 billion Richmond-based bank by combining Xenith’s $3 billion in assets with Union’s $9 billion. Union is the acquirer in the deal, which is valued at more than $700 million.

The combined banks will have an unrivaled network among its Virginia-based peers of around 150 branches across the commonwealth.

The banks said Tuesday the deal is on track to close in January.

While much smaller in scale, Prince George-based Bank of McKenney’s effort to acquire Blackstone-based CCB will bring an entirely new bank brand to the region.

The banks announced last month they’ll change the name of the combined institution to Touchstone Bank upon closing, as expected next month.

The deal was announced in June with a pegged value around $19 million. It will create a combined Prince George-based company with $447 million in assets and 13 branches covering McKenney’s territory on the southern edges of the Richmond region and CCB’s reach in South Hill, Gasburg and Boydton, as well across the North Carolina border in Roanoke Rapids, Henderson and Louisburg.

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