United Bankshares has agreed to buy Arlington-based Virginia Commerce Bancorp in a deal valued at $490.6 million, the companies announced Wednesday.
The all-stock acquisition, which would create the eighth largest bank in the Washington metropolitan area, comes less than three weeks after Virginia Commerce publicly announced that it had put itself up for sale.
Charleston, W.V.-based United Bankshares will pay $14 per share of Virginia Commerce stock, a 15 percent premium on Tuesday’s closing price of $12.21.
“We look forward to joining the United team,” Peter Converse, chief executive and president of Virginia Commerce, said in a statement. “Our merger creates superior value for our shareholders and will enable us to better serve our customers, employees and communities.”
The deal is expected to close in the third quarter of 2013.
Virginia Commerce has assets of $2.8 billion, as well as 28 branches, a residential mortgage office and wealth management office. United Bancorp, meanwhile, has assets of $8.4 billion and 114-branches throughout the Mid-Atlantic.
In December, Virginia Commerce announced that it had paid back all $71 million in funds that it received as part of the Treasury Department’s Troubled Asset Relief Program.