Richmond's Last Major Independent Bank Falls to Atlanta Giant

Crestar Financial Corp., Richmond's last remaining major independent bank, is on the verge of being acquired by SunTrust Banks Inc. of Atlanta, marking a significant loss for the city's financial landscape. This development comes as no surprise, given the industry's shift toward a few large banks with national reach and a multitude of small community banks. The takeover is a continuation of a trend that has seen several Virginia-headquartered banks, including Dominion Bankshares and Signet Corp., fall prey to out-of-state acquisitions.

Key Takeaways:

• Crestar Financial Corp., Richmond's last major independent bank, is being acquired by SunTrust Banks Inc. of Atlanta.
• The combined entity will be the nation's 10th-largest bank.
• There are no duplicating branches to close, and Crestar is expected to retain its separate name for at least two years.
• The takeover is part of a larger industry trend toward consolidation, with a few large banks dominating the market and small community banks making up the rest.
• Crestar's acquisition by SunTrust is not an isolated incident; several Virginia-headquartered banks, including Dominion Bankshares and Signet Corp., have been acquired by out-of-state banks in recent years.
• Richmond and Roanoke have experienced similar banking landscape changes, with Colonial American National Bank and Dominion Bankshares being acquired by out-of-state banks.

Statistics:

• Crestar Financial Corp. will be acquiring by SunTrust Banks Inc. will create the nation's 10th-largest bank.
• Crestar's acquisition by SunTrust will not involve closing any duplicating branches.
• Crestar is expected to retain its separate name for at least two years.
• Dominion Bankshares, a Roanoke-based bank, was acquired by Charlotte's First Union Corp. and later merged with Signet Corp. in Richmond.

Sources:

• The Richmond Time-Dispatch (editorial)
• The article fails to mention the article's date of publication.