MainStreet BankShares to merge with American National Bankshares
- August 25, 2014
Martinsville-based MainStreet BankShares Inc. is expected to merge with Danville-based American National Bankshares Inc. in a $24.2 million deal that will extend American National's footprint into the Roanoke metro area.
After the deal closes, MainStreet’s subsidiary bank, Franklin Community Bank, will be merged into American National Bank and Trust Co.
“We are extremely pleased to join forces with MainStreet. 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,” Jeffrey V. Haley, president and CEO of American National, said in a statement.
“American National’s culture, corporate character and commitment to the community are a natural fit for Franklin Community Bank, our shareholders and customers,” Brenda H. Smith, the president and CEO of MainStreet, said in a statement.
Under terms of the agreement, MainStreet shareholders will receive 0.482 shares of American National common stock and $3.46 in cash for each MainStreet share.
As of the close of business on Friday, the acquisition price was about $14.05 per share, or approximately 97 percent of MainStreet’s June 30 book value per share.
The merger will add three branches in Franklin County and the Smith Mountain Lake area (in Rocky Mount, Hardy and Union Hall) to American National’s existing branch network of 24 offices.
The combined bank will increase American National’s total assets from $1.3 billion to $1.5 billion.
MainStreet’s board chairman, Joel R. Shepherd, be added to the American National’s board once the merger is completed.
The deal is subject to approval by MainStreet shareholders and regulatory agencies. It is expected to close in January.
Keefe, Bruyette & Woods, Inc., acted as financial adviser to American National, and LeClairRyan is its legal adviser in the transaction. BB&T Capital Markets acted as financial adviser to MainStreet, and CowanPerry PC acted as legal adviser.