Union First Market-StellarOne merger deal gets regulatory approval

Richmond-based Union First Market Bankshares Corp. received approval from state and federal regulators to move forward with its acquisition of StellarOne Corp.

Union First Market announced late last week that the deal had received approval from the  Federal Reserve Bank of Richmond and the Virginia State Corporation Commission.

“We are delighted to have received all of the regulatory approvals needed to proceed with the acquisition,” G. William Beale, CEO of Union First Market, said in a statement. “The integration teams are hard at work building the next great Virginia bank, and we remain on track to close the acquisition in early January 2014.”

The $445.1 million all stock deal was announced in June. The combination of the two financial institutions is expected to create the largest Virginia-based community bank in the commonwealth with assets of $7.1 billion and $5.8 billion in deposits.

After the merger, the company will operated under the Union First Market name and be based in Richmond.

Union First Market recently announced that it will consolidate its activities at its existing operations center in Caroline County. The move will displace about 90 employees at the StellarOne operations center in Christiansburg. The displaced workers will be given new priority in filling 50 new jobs at the Caroline center.

Union First Market has 90 branches throughout Virginia.  Non-bank affiliates of the holding company include: Union Investment Services,Union Mortgage Group and Union Insurance Group. Union First Market Bank also owns a non-controlling interest in Johnson Mortgage Co. 

Charlottesville-based StellarOne operates more than 50 financial centers and  two loan production offices serving the New River Valley, Roanoke Valley, Shenandoah Valley, Richmond, Tidewater, and Central Virginia.