Danville bank expands into North Carolina
- September 29, 2011
Danville-based American National Bankshares Inc. became a billion-dollar banking entity and moved into North Carolina with its recent merger with MidCarolina Financial Corp.
The all-stock deal, completed in late June, was valued at $34.7 million. The transaction increases American National’s assets from $840 million to $1.3 billion while its work force rises from 240 to more than 300.
“With all that’s going on in banking, particularly the amount of regulation that’s coming down from Washington, it becomes more important to have size in order to be able to afford the back-office support you need to meet those regulatory requirements,” says Charles H. Majors, president and CEO of American National Bankshares, the parent company of American National Bank & Trust Co. “We’ll now be able to better support our customers as a $1.3 billion organization than we could before.”
Before the merger, American National Bank had 18 branches in Southern and Central Virginia, including in Danville, Lynchburg, Lovingston, Martinsville and South Boston. MidCarolina had eight branches, all located in Greensboro and Burlington, N.C. They will continue using the MidCarolina name as a division of the Danville bank until early next year, when they will be renamed as American National Bank offices.
Majors says American National will continue looking for expansion opportunities in contiguous areas. The MidCarolina deal not only allows the bank to enter the North Carolina market but also introduces its trust and investment services division, with $520 million in assets, to a new group of potential customers.
“The North Carolina firm did not have that service available, and so it’s a great opportunity to expand our expertise into that market and offer it to our new North Carolina customers,” Majors says.
In the combined banking company, Charles T. Canaday Jr., former president and CEO of MidCarolina, will oversee North Carolina banking operations as executive vice president of American National Bank and as senior vice president of American National Bankshares.
In addition to his positions with the parent company, Majors will continue to be chairman and CEO of American National Bank, while Jeffrey V. Haley remains the bank’s president.