Virginia Financial Group, FNB merger clears regulatory hurdles

By Lisa Kerner

Charlotte, N.C., Dec. 4 - The Federal Reserve Board and the Virginia State Corporation Commission approved the merger of equals of Virginia Financial Group, Inc. and FNB Corp., the companies announced on Tuesday.

The merger, slated to close in the first quarter of 2008, will create the largest independent bank holding company based in the Commonwealth of Virginia, according to a news release.

In July, the companies announced the merger agreement that gives FNB shareholders 1.585 shares of Virginia Financial common stock for each share of FNB common stock. Each share of Virginia Financial common stock will become one share of common stock in the new holding company.

"Now that we have authority from our banking regulators, we stand ready to obtain shareholder approvals and consummate the transaction as soon as possible," Virginia Financial president and chief executive officer O.R. Barham Jr., said in the release.

"In the meantime, we will continue to work diligently with our integration efforts in order that we deliver in a timely manner the many benefits of this merger of equals to our shareholders, customers, and communities."

Virginia Financial is the holding company for Planters Bank & Trust Co. of Virginia in Staunton, Va.; Second Bank & Trust in Fredericksburg, Va.; and Virginia Commonwealth Trust Co. in Culpeper, Va.

FNB, through its affiliate First National Bank based in Christiansburg, Va., operates 27 full-service branches and two loan production offices.

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