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StellarOne’s expansion takes a village

Michael Schwartz January 20, 2013 0
StellarOne branch at Libbie and Patterson avenues in Richmond

The StellarOne branch at Libbie and Patterson avenues opened in August.

StellarOne Bank is at it again.

With a build-out underway at its second Richmond location, the Christiansburg bank announced a deal Friday to acquire a branch at 11450 Robious Road from Midlothian-based Village Bank.

The Southside property will be StellarOne’s third storefront in the market. It opened its first Richmond branch at the corner of Libbie and Patterson avenues in August. It expects to open a branch at Gayton and Gaskins roads in the Far West End by April.

The deal for the Village branch is expected to close in March.

StellarOne, a $3 billion bank whose holding company is headquartered in Charlottesville, will acquire $21.5 million in deposits from the Village branch, along with $12.2 million in loans.

Village said in its announcement that it would continue to run its Chesterfield Towne Center branch, which is about two miles from the Robious Road location.

With $500 million in assets, Village still has 13 branches in the Richmond market.

It continues to work its way back from heavy losses in the past few years fueled by rising levels of nonperforming real estate loans.

Village lost $12 million through the first nine months of 2012, the most recent period for which figures are available. Its third-quarter loss of $588,000 was an improvement over a $5.4 million loss in the third quarter 2011.

StellarOne posted profits of $5.5 million in the third quarter and $15.9 million through the first nine months of 2012.

Branch shuffling among banks has become popular in Richmond.

Franklin Federal Savings Bank last month acquired a branch on Bell Creek Road in Mechanicsville from Union First Market Bank.

Middleburg Bank recently opened its second Richmond location, taking over a vacant Wachovia/Wells Fargo branch on Libbie Avenue.

Tappahannock-based EVB in September pulled the plug on an underperforming branch in Bowling Green and built a new branch in Colonial Heights.

More reading: Why 2012 was a turning point for Richmond banks

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