F&M National Corp. of Winchester, Va., reported a second-quarter profit of $11.9 million, up 14.6%.
Earnings per share were 47 cents, up 20.5%, and 2 cents better than analysts had expected. Six-month earnings for the $3.3 billion-asset banking company, Virginia's second-largest, were $22.9 million.
F&M announced this month that it has an agreement to buy $386 million-asset Atlantic Financial Corp. of Newport News, Va., for $70.6 million of stock. At the closing of that transaction and a deal to buy 15 Virginia branches from Wachovia Bank, F&M's assets would exceed $4 billion.
Atlantic had second-quarter net income of $1.3 million, up 32%.