StellarOne Corporation has announced that its subsidiary, StellarOne Bank, has signed a purchase and assumption agreement to sell a financial service center located in Woodstock, Virginia to First Bank. It includes all deposit accounts, fixed assets, and real estate. The branch has reported that it has deposits of $15.2 million.
The proposed transaction is expected to close in the fourth quarter of 2009.
Jeffrey Farrar, Executive Vice President and Chief Financial Officer of StellarOne, said: “This transaction reflects our efforts to improve synergy and cost efficiency for our franchise, which ultimately creates value for our shareholders. While certainly a successful and profitable financial center, the Woodstock location did not fit well with our existing franchise or long-term strategies.”
“This center was part of an eight-branch cluster purchased from the former First Virginia Bank in 2003. We are confident that First Bank will provide our Woodstock customers in-market convenience and an equally high level of community banking service,” he added.
The sale is subject to regulatory approval.
StellarOne Corporation is a traditional community bank, offering business and consumer banking services, including trust and wealth management services.
