Virginia-based Union Bankshares has agreed to acquire local lender Xenith Bankshares in an all-stock deal worth about $701.2m.
The combined entity will manage $11.9bn in total assets, $9.2bn in total deposits and $8.9bn in gross loans.
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Union president and CEO John Asbury said: “The combination with Xenith delivers on our stated priorities for this year as well as our acquisition goals enabling Union to efficiently cross the $10 billion asset threshold.
“Xenith brings extensive commercial and industrial lending expertise as they were built as a C&I platform focusing on Richmond and Northern Virginia and subsequently added an extensive branch network through the combination with the Bank of Hampton Roads.
“Deepening our presence in Hampton Roads and adding to our Richmond and Northern Virginia network were priorities for Union and we’re also able to gain retail entry points in North Carolina and Maryland.”
Asbury will serve as president and CEO of the merged entity. Union chairman Raymond Smoot will continue in that role.
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By GlobalDataThe Union board will be expanded to 20 members post deal completion, including 18 from the existing Union board and two from the Xenith board.
The deal has already been given the go-ahead by the board of directors of both companies. It is expected to close in early January 2018, subject to regulatory and shareholder approvals.
