Millennium Bankshares Corp. in Reston, Va., is buying the $125 million-asset Albemarle First Bank of Charlottesville for $29 million.
The cash-and-stock deal, announced Friday, is expected to close in the fourth quarter. Albemarle First would become a subsidiary of Millennium but would keep its charter and separate identity.
The 6-year-old Albemarle First operates three branches in the Charlottesville area. It reported profits of $31,000 for the first quarter and $101,000 for all of last year. It has struggled with asset-quality and other problems for much of its history. In 2003 it was rocked by the discovery of a customer's check-kiting scheme that cost it $2.4 million.
Millennium reported net income of $678,000 for the first quarter and $2.2 million for all of last year. Its chairman, president, and chief executive, Carroll C. Markley, said the deal would be nondilutive to earnings this year and accretive next year.
