The new year dawns with Xenith Bank changing its name again.
Two Richmond-based banks completed their merger Monday, creating the largest regional financial institution based in Virginia.
Union Bankshares Corp., parent company of Union Bank & Trust, bought Xenith Bankshares Inc. in an all-stock transaction valued at $701.2 million. The deal was announced in May and received shareholder approval in October.
Combining the two financial institutions will strengthen Union Bankshares’ presence in Hampton Roads and expand it into North Carolina and Maryland.
“Today marks the start of something remarkable for businesses and consumers in Virginia, Maryland and North Carolina — an independent regional bank headquartered in the commonwealth,” John C. Asbury, Union’s president and chief executive officer, said in a statement.
“We believe that our two companies are stronger together and the combination gives Union a unique franchise to create long-term shareholder value,” he said. “We expect that our combined statewide footprint will bring additional convenience to our customers and position us as a strong competitor against large regional institutions and smaller community banks alike — making us the preeminent commercial bank headquartered in Virginia.”
The combined company has total assets of about $12.3 billion, total deposits of $9.5 billion and gross loans of $9.3 billion, based on financial data as of Sept. 30. By surpassing the $10 billion threshold in assets, Union officially becomes a regional bank — larger than a community bank — and subject to new banking regulations.
The combined the bank has the fourth-largest branch network in Virginia, after Wells Fargo, BB&T and SunTrust.
Union Bank & Trust has 151 offices, 40 of which are operated as Xenith Bank. Those branches will continue operating as Xenith Bank until systems conversion is completed in late May, except in North Carolina, where a Union Bank & Trust brand under different ownership already exists. Those branches will be changed to Union Bank & Trust, Doing Business as Xenith.
“The integration work is going well and everything remains on track for a systems conversion in late May 2018,” Asbury said. “Our teammates have been working tirelessly to ensure a smooth integration.”
In July 2016, Hampton Roads Bankshares acquired Xenith Bankshares, which was created in 2009. The combined entity kept the Xenith name and the headquarters remained in Richmond.