Union Bankshares Corp. reported second-quarter net income of $953,000, down from $4.3 million for the same period a year ago. The decrease was driven by an increase in the provision for loan losses, increased Federal Deposit Insurance Corp. insurance assessments and a decline in net-interest income. The Bowling Green-based bank also incurred costs related to its merger with Richmond-based First Market Bank, which is expected to be completed by year’s end.

First Market Bank, a private chain of banks mostly owned by the Ukrop family and Ukrop’s Super Markets Inc., is moving toward its merger later this year with Bowling Green-based Union Bankshares Corp. “There are a zillion reasons why a bank sells out,“ said Kent Engelke, chief economic strategist at Capitol Securities Management in Richmond.

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.

First Market Bank is hooking up with a bigger state bank, creating the largest Virginia-based financial institution. First Market Bank, mostly owned by Ukrop’s Super Markets Inc., said yesterday that it plans to join Union Bankshares Corp. in Bowling Green in a deal valued at $105 million.