Manassas Park’s only financial institution, Alliance Bank, has been purchased by WashingtonFirst Bank of Reston.
The $24.4 million sale has been in the works for several months, but the deal became final less than a month ago, on Dec. 21, according to a Washington Post report.
A temporary "WashingtonFirst" banner has been draped across the front of the Alliance Bank branch in City Center. The bank has been the only tenant since the property was built more than four years ago.
Alliance Bank was required to move into the mixed-used development because it was located on the city-owned land where Clark Realty built the mixed-use development.
The city of Manassas Park has worked closely with Alliance Bank. The relationship isn’t expected to change now that it’s owned by Reston-based WashingtonFirst Bank, said Manassas Park city manager James “Jim” Zumwalt.
“Alliance provides the city almost all of its banking services and they provide our cash flow loans each spring and fall,” Zumwalt wrote in an email. “No changes are anticipated as a result of Alliance's merger with WashingtonFirst Bank.”
Because Manassas Park real estate property tax payments are split into two, semi annual payments, the city has to borrow money from Alliance Bank twice a year to tide it over between real estate property tax payments so the city can cover it's annual shortfall operations.
Three Alliance Bank directors have joined the board of WashingtonFirst Bank while Alliance shareholders have the option to receive 0.44 share of WashingtonFirst’s common stock or $5.30 cash for each share they already own, according to the Washington Post report.
The purchase adds five banking locations to WashingtonFirst's Northern Virginia branches and increases the banks total assets to more than a billion dollars.