January 27, 2020 — Pinnacle Bankshares Corporation (OTCQX: PPBN) and Virginia Bank Bankshares, Inc. (OTC Pink: VABB) have announced a definitive merger agreement.
The combined company will have approximately $703 million in total assets, $624 million in total deposits and $537 million in loans based as of September 30, 2019.
Under terms of the agreement, Virginia Bank shareholders will receive either $16.00 cash or 0.5000 shares of Pinnacle common stock for each share of Virginia Bank common stock, subject to the limitation that 70% of the shares will be exchanged for the stock consideration and 30% of the shares will be exchanged for the cash consideration.
After the merger, Pinnacle shareholders will own 71% of the combined company, and Virginia Bank shareholders will own approximately 29%.
Donald W. Merricks, Chairman and Chief Executive Officer of Virginia Bank, 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.”
At the close of the transaction, Virginia Bank, the holding company for Virginia Bank and Trust Company, and Pinnacle, the holding company of First National Bank, will merge their holding companies and subsidiaries. The transaction is expected to close in the third quarter of 2020.
More information is available here.
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