Pinnacle Bankshares in southern Virginia to buy rival lender
Pinnacle Bankshares in Altavista, Va., has agreed to buy Virginia Bank Bankshares in Danville, Va.
The $480.5 million-asset Pinnacle said in a press release Tuesday that it will pay $29.1 million in cash and stock for the $221.4 million-asset Virginia Bank. The deal is expected to close in the third quarter.
Pinnacle will have $624 million in deposits and $537 million in loans when the deal closes.
"This is a tremendous opportunity to combine two neighboring community banks with similar cultures and philosophies in a transformational merger,” Todd Hall, Pinnacle’s president and CEO, said in the release.
“We have a strong team of experienced personnel throughout the organization and I am honored and proud to lead us in this new endeavor,” Hall added.
Donald Merricks, Virginia Bank’s chairman and CEO, will become vice chairman at Pinnacle, while Jerry Oakes, the seller’s president, will become a market president. Five Virginia Bank directors will join Pinnacle’s board.
Banks Street Partners and Troutman Sanders advised Pinnacle. Janney Montgomery Scott and Williams Mullen advised Virginia Bank.