American National Bankshares has agreed to buy MainStreet BankShares in Martinsville, Virginia, for approximately $24.2m.
The merger will add three bank branches in Franklin County and the Smith Mountain Lake area for American National, which will have $1.5bn in assets upon completion of the merger.
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Under the terms of the agreement, shareholders of MainStreet common stock will receive 0.482 shares of American National common stock and $3.46 in cash for each share of MainStreet they own.
MainStreet’s subsidiary bank, Franklin Community Bank, will also be merged into American National Bank.
Jeffrey Haley, president and CEO of American National, said: "Their subsidiary bank, Franklin Community Bank, is known for its community-focused, dedicated staff who provide high quality financial services and products and who believe in the long-term growth and potential of Franklin County.
"We believe in Franklin County, too. By combining Franklin County’s only community bank with our century of banking, financial strength and commitment to 21st century technology, we will create the community bank of choice for businesses and individuals in this area."
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By GlobalDataUpon completion of the merger, MainStreet’s board chairman, Joel Shepherd will be added to the board of American National.
The deal, which is subject to customary closing conditions, is expected to close in early January 2015.
