StellarOne Bank and Village Bank Announce Branch Purchase and Assumption
CHARLOTTESVILLE, Va., Jan. 18, 2013 (GLOBE NEWSWIRE) -- StellarOne Corporation
(Nasdaq:STEL) (StellarOne) and Village Bank and Trust Financial Corp.
(Nasdaq:VBFC) (Village) today jointly announced that its banking subsidiaries,
StellarOne Bank and Village Bank, have entered into a purchase and assumption
agreement for StellarOne Bank to purchase the Village Bank branch located at
11450 Robious Road in Richmond, Virginia.
StellarOne Corporation is the Charlottesville, Virginia based bank holding
company for StellarOne Bank, and Village Bank and Trust Financial Corp. is the
Richmond, Virginia based bank holding company for Village Bank.
StellarOne Bank will acquire deposits of approximately $21.6 million, loans of
$12.2 million and real estate of $1.7 million from Village Bank. The purchase
price represents a 3.5% premium on the deposits, par value on the loan
portfolio and book value for the real estate.
"This branch acquisition aligns with our previously announced plans to develop
a retail branch network in Richmond that will support our established lines of
business in Richmond and complement our growth strategy," said Joshua M.
Gehring, Senior Executive Vice President and Director of Retail Banking for
StellarOne Bank. "This will represent our third site in Richmond, with our
Libbie and Patterson branch open and our Gayton Crossing Branch to open in
Thomas W. Winfree, President and CEO of Village Bank, stated that, "This
transaction affords Village Bank the opportunity to focus its energies and
deposit growth on its Chesterfield Towne Center branch which is located
approximately one mile from the subject branch on Robious Road. With the sale
of this branch, Village Bank continues to have a significant presence in the
Richmond Metropolitan area with 13 branches that are well positioned to
service the Richmond market. This sale will not affect the service to our
current customer base and will reduce overhead expenses."
The purchase is subject to customary closing conditions, including regulatory
approvals, and is expected to be completed in March.
StellarOne Corporation is a traditional community bank with assets of $3
billion offering a full range of business and consumer banking services,
including trust and wealth management services. Its sole banking subsidiary,
StellarOne Bank, operates over 50 full-service financial centers, two loan
production offices, and over 60 ATMs serving the New River Valley, Roanoke
Valley, Shenandoah Valley, and Central and North Central Virginia.
About Village Bankand Trust Financial Corp.
Village Bank and Trust Financial Corp. was organized under the laws of the
Commonwealth of Virginia as a bank holding company whose activities consist of
investment in its wholly-owned subsidiary, Village Bank. Village Bank is a
full-service Virginia-chartered community bank headquartered in Midlothian,
Virginia with deposits insured by the Federal Deposit Insurance Corporation.
The Bank has thirteen branch offices. Village Bank and its wholly-owned
subsidiary, Village Bank Mortgage Corporation, offer a complete range of
financial products and services, including commercial loans, consumer credit,
mortgage lending, checking and savings accounts, certificates of deposit, and
In addition to historical information, this press release contains
forward-looking statements. The forward-looking statements are subject to
certain risks and uncertainties, which could cause actual results to differ
materially from historical results, or those anticipated. When we use words
such as "believes," "expects," "anticipates" or similar expressions, we are
making forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which reflect management's
analysis only as of the date thereof. StellarOne and Village wishes to caution
the reader that factors, such as those listed below, in some cases have
affected and could affect StellarOne's or Village's actual results, causing
actual results to differ materially from those in any forward-looking
statement. These factors include: (i) expected cost savings from StellarOne's
or Village's acquisitions and dispositions, (ii) competitive pressure in the
banking industry or in StellarOne's or Village's markets may increase
significantly, (iii) changes in the interest rate environment may reduce
margins, (iv) general economic conditions, either nationally or regionally,
may be less favorable than expected, resulting in, among other things, credit
quality deterioration, (v) changes may occur in banking legislation and
regulation, (vi) changes may occur in general business conditions, and (vii)
changes may occur in the securities markets, Please refer to StellarOne's or
Village's filings with the Securities and Exchange Commission for additional
information, which may be accessed at www.StellarOne.com or
CONTACT: Jeffrey W. Farrar, Executive Vice President and
Chief Financial Officer of StellarOne Corporation
Thomas W. Winfree, President and
Chief Executive Officer of Village Bank
Press spacebar to pause and continue. Press esc to stop.