CHARLOTTESVILLE, Va., Jan. 31 /PRNewswire-FirstCall/ -- Virginia Financial
Group, Inc. (Nasdaq: VFGI), announced today that the Board of Directors has
approved the payment on February 29, 2008 of a quarterly cash dividend in the
amount of $0.16 per share to shareholders of record on February 9, 2008. The
payment represents an annual yield to shareholders of approximately 4.1
percent based on the stock's recent trading price, and matches the last
quarterly dividend paid on November 26, 2007.
Virginia Financial Group, Inc. (VFG) is one of the largest publicly held
commercial bank holding companies based in Virginia, with over $1.5 billion in
assets. The Company is a traditional community banking provider, offering a
full range of business and consumer banking services including trust and asset
management service via its trust company affiliate. Through the activities of
its affiliates, Planters Bank and Trust Company of Virginia, Second Bank &
Trust of Fredericksburg and Virginia Commonwealth Trust Company of Culpeper,
VFG operates 35 full-service branches and 2 loan production offices.
Pending Merger of Equals with FNB Corporation
As previously announced, FNB and VFG have entered an agreement and plan of
reorganization pursuant to which the two companies will combine in a merger of
equals transaction, to create the largest independent bank holding company
headquartered in Virginia. The merger has received approval from the Federal
Reserve Board and Virginia State Corporation Commission. FNB and VFG have each
scheduled special meetings on February 12, 2008 for shareholders of FNB and
VFG to approve the merger. In the meantime, merger integration teams from FNB
and VFG are making significant progress toward the combination and integration
of the two companies. The companies expect the merger to be completed during
the first quarter of 2008.
Additional Information About The Merger and Where to Find It
In connection with the proposed merger, VFG filed with the Securities and
Exchange Commission (the "SEC") a registration statement on Form S-4 that was
declared effective by the SEC on December 28, 2007. The registration statement
includes a joint proxy statement/prospectus, which was first mailed to
shareholders of VFG and FNB on or about January 3, 2008.
We urge investors and other shareholders to read the joint proxy
statement/prospectus and any other relevant documents filed by either party
with the SEC because they contain important information about the companies
and the proposed transaction.
Investors and shareholders may obtain the joint proxy statement/prospectus
and other documents filed with the SEC by FNB and VFG free of charge through
the website maintained by the SEC at http://www.sec.gov. Free copies of these
documents also may be obtained by directing a request to Virginia Financial
Group, Inc., 590 Peter Jefferson Pkwy. Suite 250 Charlottesville, Virginia
22911, Attention: Investor Relations (telephone: (434) 964-2211) or by
accessing VFG's website at http://www.vfgi.net under "SEC Filings and Other
Documents."
The information on VFG's website is not, and shall not be deemed to be, a
part of this release or incorporated into other filings VFG makes with the
SEC.
VFG and FNB and their directors, certain of their executive officers, and
the members of FNB Shareholders for Progress are participants in the
solicitation of proxies from the shareholders of VFG and/or FNB, respectively,
in connection with the merger. Information about the directors and executive
officers of VFG is contained in the proxy statement for VFG's 2007 annual
meeting of shareholders filed with the SEC on March 28, 2007. Information
about the directors and executive officers of FNB is contained in the proxy
statement for FNB's 2007 annual meeting of shareholders filed with the SEC on
March 30, 2007. Information about the members of FNB Shareholders for Progress
is contained in Annex F to the joint proxy statement/prospectus. Additional
information regarding these participants in the proxy solicitation and their
direct and indirect interests, by security holdings or otherwise, is contained
in the joint proxy statement/prospectus and other relevant materials filed
with the SEC.
SOURCE Virginia Financial Group, Inc.