Reston-based Access National Corp. is merging with Middleburg Financial Corp., the institutions announced Monday morning.
If approved by shareholders and regulators next year, the marriage will create an institution with $2.7 billion in total assets, $2.2 billion in deposits and a firm foothold across Northern Virginia.
Middleburg Bank, founded in 1924, is the county’s oldest community bank and the last one based in the county. CEO Gary Shook said the Middleburg Bank brand will continue on at the bank’s existing branch offices. In Fairfax County, and other areas of Northern Virginia, the offices will be branded as Access National Bank.
“Middleburg and Access are getting bigger together but the brands will not disappear from the marketplace. That’s good news for everyone,” he said.
“The combined holding company, called Access National Corporation, will rank fifth in deposit market share among Virginia-based banks under $10 billion in assets, with $2.7 billion in total assets, $2.2 billion in deposits, $1.8 billion in gross loans and $2.5 billion in assets under management and administration.” the announcement stated.
Under the $233.1 million transaction, Middleburg Bank shareholders will receive 1.3314 Access National shares for each share of Middleburg common stock they own. Access National shareholders will own 53.5 percent of the new company.
The board of directors for the new company will include seven members of the current Access National board and six members of the current Middleburg board, including Shook, and John C. Lee IV, who recently replaced Joe Boling as Middleburg’s chairman following his retirement. Lee will serve as chairman of the board; Access National Chairman Mike Anzilotti will serve as vice chairman.
Representatives of both banks said the merged company will have a broader business base. Access National is stronger in the mortgage and small business loan market segments, while Middleburg’s strength is on the retail side, with a reputation for serving affluent individuals. Additionally, there is little overlap in their current geographic service areas.
Access National CEO Michael Clarke said another important factor is that the banks remain under the control of local decision-makers.
Middleburg Bank leaders have been under pressure this year from David Sokol, the company’s largest shareholder, to increase performance though an acquisition or merger. The Access National deal is a significant step in that direction, but Clarke noted bank leaders are eyeing opportunities for further expansion in Virginia.
Access National is headquartered in Reston and has branch offices in Leesburg, Arlington, Alexandria, Chantilly, Manassas and Tysons Corner.
Middleburg Bank, based in Middleburg, operates branches in Leesburg, Ashburn, Gainesville, Marshall, Purcellville, Reston, Richmond and Warrenton.
While some duplicative positions will be eliminated as the merger moves ahead, Clarke said the bank is looking for new hires, as well. “We need good bankers to help in the community,” he said.