First National, the parent company of First Bank, has announced the receipt of regulatory approvals for its previously announced $47m acquisition of rival American bank holding company Touchstone Bankshares.
Touchstone Bankshares is the holding company for Touchstone Bank.
The regulatory clearances for the deal came from the Federal Reserve Bank of Richmond and the Bureau of Financial Institutions of the Commonwealth of Virginia. The deal was announced in March 2024.
Following the closing of the merger, First National and First Bank will be the surviving bank holding company and banking subsidiary, respectively.
First National president and CEO Scott Harvard said: “We are pleased to have received regulatory approval of our Merger that will accelerate our growth trajectory and drive long-term shareholder value.
“With common cultures and values and a shared commitment to our customers, employees and communities, we look forward to delivering superior service to customers throughout our combined markets.
“We remain excited about this opportunity to expand our Richmond metro presence with the addition of seven branches in the market and welcoming the Touchstone team into the First Bank family.”
The merger, scheduled for completion in Q4 2024, is subject to the fulfilment of standard closing conditions and the approval of shareholders from both Touchstone Bankshares and First National during their respective special shareholder meetings set for 29 August 2024.
As of 31 March 2024, the combined entity is expected to hold assets totalling approximately $2.1bn, with $1.8bn in deposits and $1.5bn in loans.
In terms of the transaction specifics, Touchstone Bankshares’ shareholders will receive 0.8122 shares of First National stock for every share they hold. This exchange is based on a closing stock price for First National of $17.55 on 22 March 2024, valuing the deal at $14.25 per Touchstone Bankshares share.
Touchstone Bank, established in 1906 as Bank of Dinwiddie and headquartered in Prince George, Virginia, operates 12 branches in Richmond, south-central Virginia, and northern North Carolina.
It offers banking services, including two loan centres, 12 ATM facilities, and online and mobile banking solutions. Touchstone Bankshares is publicly traded on the OTCPK marketplace.
First National, which is listed on Nasdaq, was founded in 1907 in Strasburg, Virginia. Its subsidiary First Bank operates as a community-focused bank .
