Denver-based Union Bank and Trust, a subsidiary of Union Bankshares, has agreed to buy Lakewood (Colo.) State Bank for $8.4 million in cash.

Union Bank and Trust, a $258 million-asset bank, plans to pay for with available working capital and loans. The purchase, scheduled to close during the fourth quarter, is not expected to be dilutive to the holding company's earnings.

Lakewood, a one-branch, $42 million-asset bank, would become a Union branch and add to the bank's presence in the growing suburbs west of Denver, said Charles R. Harrison, Union Bankshares' chairman. The acquisition would also complement a branch Union has under construction in Golden, a suburb west of Lakewood. Union, which plans to open the Golden branch in October, operates five other branches in the Denver metropolitan area.

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