One Valley Bancorp said Tuesday it has a definitive agreement to buy Lynchburg, Va.'s FFVA Financial Corp. for about $204 million in stock.
One Valley, with $4.5 billion of assets, would merge FFVA's subsidiary, $567 million-asset First Federal Savings Bank of Lynchburg, into One Valley Bank of Central Virginia. The deal, expected to close in the second quarter, would boost One Valley's assets in Virginia and West Virginia to $5.4 billion.
The deal is being accounted for as a pooling-of-interest. To receive approval from federal regulators, both companies have rescinded previously announced stock repurchase plans.
One Valley has been busy in Virginia. In 1996 the company acquired CSB Financial of Lynchburg. And last month One Valley annouced plans to acquire 15 former Jefferson National and Central Fidelity branches from North Carolina's Wachovia Corp. That purchase is expected to be completed in February.
- Alan Kline