Capon Valley Bank buys BB&T branch

By James Heffernan -- Daily Staff Writer

STEPHENS CITY -- Capon Valley Bank has purchased the former BB&T building at 5511 Main St., with plans to convert the property into a second Frederick County branch sometime this summer.

The Wardensville, W.Va.-based community bank has an office in Gore.

The transaction, which also includes an adjacent 1.5-acre lot, closed on Friday. Terms were not disclosed.

Plans for the vacant 3,600-square-foot building are subject to regulatory approval.

Alan Brill, president and CEO of Capon Valley Bank, said Frederick County is a good fit for the bank's expansion plans.

"A lot of our existing customers are in those areas, so it's a natural extension for us to move in that direction," he said.

At approximately 3,600 square feet, the BB&T building is a little larger than what Capon Valley Bank would normally occupy if it were constructing a facility from scratch, Brill said.

"But it's certainly adequate for what we're looking for," he added.

While community banks are feeling the impact of the recession, with fewer people buying cars and homes, Brill said Capon Valley has managed to avoid the pitfalls that have claimed some of its larger counterparts.

"We didn't stray from our business [philosophy]," he said. "Besides, the economy isn't going to be like this forever. ... The building was there, and we're poised to take advantage of it for when he get back to better economic times."

Capon Valley Bank's holding company, Highlands Bankshares Inc., had assets of $378.3 million as of Dec. 31. Its 2008 earnings were $4.97 million, up more than 6 percent over 2007.

The local BB&T branch was established in the mid-1970s and will require some extensive renovations, Brill said. It features two drive-through windows on the south side, and parking is limited.

Brill said in purchasing the adjacent lot, "one of the things we were interested in was the ability to expand." The company may use the land to allow for better access to and from the bank, he said.

R.J. Turner, principal of Winchester-based Turner Real Estate, helped broker the deal. He said the property will put Capon Valley Bank in an especially good position if and when Stephens City's exit off Interstate 81 is shifted south.

In September 2007, Lowe's purchased 103 acres straddling the proposed interchange, with plans to eventually build a store on the east side of the highway.

Contact James Heffernan at jheffernan@nvdaily.com