StellarOne owners plan merger with Union First in Richmond

StellarOne branch in Floyd.
StellarOne branch in Floyd.
StellarOne branch in Floyd.

StellarOne, the bank renamed after First National Bank of Christiansburg merged with a Culpeper holding company in 2008, may change its name again if a proposed merger with Richmond-based Union First bank goes through.

The new combined banking branches, including the one in Floyd, would become Union First if shareholders of Virginia Financial Group and Union First Market Bankshares approve the merger later this year or early next year.

The deal, we are told, is worth about $445 million and would make the combined bank the larges community financial institution in Virginia.  Hopefully, it won’t change the Floyd branch, which has a good reputation for customer service.

The merger comes after last year’s takeover of Cardinal Bankshares, which controls Bank of Floyd, by a group of local shareholders backed by a North Carolina investor led to predictions by some that the one locally-owned bank in Floyd would be a takeover target.

The Bank of Floyd, however, has remained locally-owned and has increased its focus on community banking.

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