Charlottesville, Va.-based StellarOne Corp., through its banking subsidiary, StellarOne Bank, has entered into an asset sale agreement with Lexington, Tenn.-based First Bank to sell its wholesale mortgage banking business located in Greer, S.C. The agreement calls for the purchase of net assets, goodwill and going concern value.
Through the first nine months of the year, StellarOne Bank's wholesale division had gross revenues of $2.3 million and direct operating expenses of $1.9 million. The transaction is expected to close by year-end.
‘The resources that this transaction will release shall enable us to more effectively grow our retail mortgage banking business and partner with our commercial, retail and wealth management lines of business," says StellarOne Executive Vice President and Chief Financial Officer Jeffrey W. Farrar. "This will include expanding our mortgage presence in the Richmond market and our previously announced entry into the Virginia Beach/Tidewater market."