In a deal first announced on June 10, Union First Market Bankshares (NASDAQ:AUB) has gained regulatory approval from the Virginia State Corporation Commission and the Federal Reserve Bank of Richmond to move forward with the all-stock acquisition of StellarOne (NASDAQ: STEL), Union First Market said Friday in a statement.

The combined community banks, as of March 31, will have $7.1 billion in assets, loans of $5.2 billion, and $5.8 billion in deposits, StellarOne said, making it the "largest community banking institution in the Commonwealth of Virginia."

The total value of Union First Market's acquisition, based on the June 7 $20.07-per-share closing price of Union First Market's stock (the last business day before the initial announcement), is an estimated $445.1 million. StellarOne shareholders will receive 0.9739 shares of Union First Market's stock for each share of StellarOne stock owned, according to StellarOne.

Union First Market CEO G. William Beale said of the regulatory approvals, "The integration teams are hard at work building the next great Virginia bank, and we remain on track to close the acquisition in early January 2014."