The parent companies of First National Bank and Virginia Bank and Trust announced Tuesday a merger that would leave all Virginia Bank and Trust locations rebranded as First National Banks.
Pinnacle Bankshares Corporation and Virginia Bank Bankshares, Inc. agreed to a strategic merger that would leave Pinnacle Bankshares the surviving company, with Pinnacle shareholders controlling 71 percent of the company.
The Virginia Bank and Trust company operates seven banks in Danville and Pittsylvania County. Pinnacle, which operates in central Virginia, has two of its 10 locations in Altavista.
"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," said Donald Merricks, Chairman and CEO of Virginia Bank, in a news release.
This merger will see every Virginia Bank and Trust location rebranded into a First National Bank. No bank closures are anticipated to come from this merger, which is expected to be completed in the third quarter of 2020.
"This is a tremendous opportunity to combine two neighboring community banks with similar cultures and philosophies in a transformational merger," said Todd Hall, President and CEO of Pinnacle.
Both banks anticipate the merger will lead to much higher growth than could be achieved individually. The merger was unanimously supported by both company's boards of directors.
The merger will leave Pinnacle with $703 million in total assets, $624 million in total deposits and $537 million in loans according to amounts reported in Sept. 2019.
Current shareholders of Virginia Bank will have the opportunity to sell their shares for $16 each or trade them for half a share of Pinnacle Bank each as long as 70 percent of the shares are traded and 30 percent are cashed out.