Pinnacle Bankshares, the holding company of First National Bank, and Virginia Bank Bankshares, the holding company of Virginia Bank and Trust, have signed a merger agreement to combine both the firms.
The combined company is expected to have total assets valued approximately $703m, deposits totalling $624m, and loans worth $537m, as of 30 September 2019.
Pinnacle president and chief executive officer Aubrey H Todd Hall III said: “This is a tremendous opportunity to combine two neighboring community banks with similar cultures and philosophies in a transformational merger.
“We have a strong team of experienced personnel throughout the organization and I am honored and proud to lead us in this new endeavor. Together, we will leverage our resources for the benefit of all stakeholders and are committed more than ever to our community bank strategy.”
Virginia Bank and Pinnacle merger will enhance product offering and access to new markets
Under the terms of the merger agreement, Virginia Bank shareholders will hold an option to receive either $16 of cash or 0.5000 shares of Pinnacle common stock, for each share of Virginia Bank common stock.
Under the terms of the agreement, Virginia Bank and Trust will merge into First National Bank, and its offices will be rebranded as First National Bank offices.
Once the transaction is completed, Pinnacle shareholders will own 71% of the combined company, while Virginia Bank shareholders will own approximately 29%.
The transaction is expected to expand the combined company’s product offering and access to new markets, along with creating opportunities for growth, profitability and long-term value for employees, customers and shareholders.
The transaction is expected to be closed in the third quarter of 2020, subject to shareholders approval, regulatory approvals and other customary closing conditions.
Virginia Bank chairman and chief executive officer Donald W Merricks said: “We believe that Pinnacle is the ideal partner for our bank. Merging these financially sound institutions is a natural fit.
“Both banks are led by seasoned teams of community bankers who make local decisions to serve the communities in which we operate. This merger will allow us to better provide quality banking services to our customers, a rewarding workplace for our employees, and superior value to our shareholders.”
