Virginia Financial, FNB merge to form StellarOne

By Lisa Kerner

Charlotte, N.C., Feb. 28 - Virginia Financial Group, Inc. and FNB Corp. completed their merger of equals and will now operate under the name StellarOne Corp., the companies announced on Thursday.

The new company, located in Christiansburg, Va., began trading Thursday on the Nasdaq Global Select Market under the symbol "STEL."

By merging, Virginia Financial and FNB created the largest independent commercial bank based in Virginia, with total assets of more than $3 billion and total deposits exceeding $2.3 billion, a company news release stated.

"Our merger of equals will allow us to reap the rewards of enhanced operational efficiencies largely due to economies of scale, improved product and service offerings, and strong human capital, all critical components in the execution of our strategic business plan," StellarOne president and chief executive officer O.R. (Ed) Barham Jr. said in the release.

Under the companies' merger agreement, FNB shareholders will receive 1.585 shares of StellarOne common stock for each share of FNB common stock.

Virginia Financial shareholders will continue to hold one share of StellarOne common stock for each share of Virginia Financial stock.

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

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.

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