First Market Bank, Union Bank and Trust to combine operations

First Market Bank and Union Bank and Trust will combine operations with a new name -- rather than operate as separate banks -- when their parent companies merge.

The initial merger deal between First Market and Union Bankshares Corp. called for First Market to operate as a separate subsidiary under the combined publicly traded firm to be called Union First Market Bankshares Corp.

But the two companies recently amended their merger agreement to call for consolidating operations of the two community banks into one with a new name and a common brand.

The name and brand for the combined entity will be announced later this year, the companies said.

"The joint decision to combine our two banks -- rather than operate them separately -- is based on a desire to provide customers with one of the most convenient community banking networks in Virginia," said G. William Beale, president and chief executive of Union Bankshares.

"Union Bank and Trust and First Market Bank, once combined, will provide strong financial and operational efficiencies that we believe will benefit both our shareholders and our customers," said Beale, who will remain CEO of the holding company and become CEO of the combined banks.

The merger deal should be completed during the fourth quarter, subject to regulatory and shareholder approvals.

The consolidation of the two subsidiaries is expected to occur during the first quarter of 2010.

When completed, the combined entity will have 97 branches in Virginia with more than $4 billion in assets -- creating the largest community bank in Virginia. The new holding company will have its headquarters in Richmond.

First Market, a privately held company whose owners include Ukrop's Super Markets Inc., members of the Ukrop family and Markel Corp., operates 39 branches, mostly inside Ukrop's stores and mostly in the Richmond area.

Union Bankshares' current subsidiaries are Union Bank and Trust, which operates 42 locations; Northern Neck State Bank and Rappahannock National Bank. -- Gregory J. Gilligan