StellarOne (STEL) is buying a branch in Virginia's state capital.
The $3 billion-asset Charlottesville, Va., company said Friday that it will buy a branch from the $508 million-asset Village Bank and Trust (VBFC) in Midlothian, Va.
StellarOne will pay a 3.5% premium on deposits for the branch, which has about $21.6 million in deposits, $12.2 million in loans and $1.7 in real estate. The branch would be StellarOne's third in Richmond.
"This branch acquisition aligns with our previously announced plans to develop a retail branch network in Richmond that will support our established lines of business in Richmond and complement our growth strategy," Joshua Gehring, StellarOne's director of retail banking, said in a press release.
The sale would allow Village Bank to "focus its energies and deposit growth" on another branch that is roughly a mile from the branch it is selling, Thomas Winfree, the company's chief executive, said in the release.
Village Bank will have 13 branches in Richmond after the deal's expected March closing.