On the heels of a big Richmond acquisition, Union Bank & Trust isn’t letting up on the accelerator elsewhere in the state.
The locally based bank on Monday announced it is acquiring Dixon, Hubard, Feinour & Brown, a Roanoke-based investment advisory firm that will operate as part of Union’s wealth management division.
The Roanoke deal adds $600 million in managed client assets to Union Wealth Management, which now handles $3.2 billion for its clients, and is the second wealth management acquisition for the bank in the last 18 months.
In June 2016 the bank brought Charlottesville-based Old Dominion Capital Management and brought its $300 million in client assets into the fold.
The deal also follows Union’s acquisition earlier this month of local peer Xenith Bank, a marriage that brought the bank’s total assets to more than $12 billion.
Union spokesman Bill Cimino said the Dixon Hubard deal is a continuation of the bank’s push to grow its wealth management arm and bulk up its presence in Roanoke, where it has a small office.
“We did have a presence there, but this takes it to another level,” Cimino said.
Similar to the Old Dominion Capital deal, the principals and employees from Dixon Hubard will stay on in Roanoke once the deal closes as expected in the second quarter.
Cimino said the principals all have committed to staying on for the foreseeable future, but that it’s structured as a way for them to have an exit strategy should they look to retire down the road.
“Some of them are later in their careers,” he said. “They’ve built this practice over years and we want to take good care of it and their clients.”
Dixon Hubard was founded in 1981 and its principals are C. Whitney Brown Jr., Edwin Feinour, W. Stebbins Hubard Jr. and Walter Dixon III.
Wealth management is a growing piece of Union’s business, according to its latest financials. It reported $11.2 million in fiduciary and asset management fees for the full year 2017, up from $10.1 million a year ago and $9.1 million in 2015.
Cimino said the bank will continue to have conversations with wealth management firms in Virginia, North Carolina, Maryland and elsewhere about potential acquisitions, but emphasized that such deals don’t happen overnight.
“These are conversations that take a long time,” he said. “For them, they’ve built up this business and they need to make sure we’re the right fit for them and their clients.”