In an attempt to further expand its banking franchise in the Virginia markets, First National Corporation (FXNC) has inked a deal to acquire the banking operations of six locations from Bank of America Corporation (BAC). Through this acquisition, the Strasburg, VA-based Southeastern bank will team up with experienced and talented associates of the acquired branches, thus expanding its geographical footprint in neighboring counties.
Notably, in September, the Columbus, OH-based Huntington Bancshares Inc. (HBAN) acquired 24 branches of Bank of America (“BofA”) in Michigan. More recently, BOK Financial Corporation (BOKF) disclosed a plan to close 29 of its in-store grocery branches so as to embrace technology-embedded products.
The six locations mentioned in the deal include Woodstock, Elkton, Staunton and Waynesboro in the Shenandoah Valley and Dillwyn and Farmville in central Virginia. All existing employees of the acquired branches will be absorbed and utmost care will be taken to facilitate a smooth transition of customers.
Notably, First National is the holding company for First Bank, which offers an array of banking services such as loan, deposit, trust, investment products and services to individuals, small and medium-sized businesses, local governmental entities, and non-profit organizations in Virginia. As of Sep 30, 2014, First Bank had $519.4 million in total assets and $438.9 million in total deposits with 10 retail banking offices.
This acquisition will add an estimated $308 million of deposits to First Bank’s balance sheet. The deal, subject to approval from regulators as well as certain other customary closing conditions, is expected to close by second-quarter 2015.
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