In order to strengthen its footprint in Roanoke, VA, American National Bankshares Inc. (AMNB) is set to join forces with Martinsville, VA-based MainStreet BankShares. The deal, which is expected to close in early Jan 2015, is valued at around $24.2 million.
Per the terms of the deal, shareholders of MainStreet will obtain 0.482 shares of American National common stock and cash amount of $3.46 for every MainStreet share held. This will allow MainStreet shareholders to own about 10% of the merged company.
The deal is expected to be accretive to American National’s earnings per share and will also boost the company's total assets to around $1.5 billion. It will help American National to broaden it wings in the Roanoke metropolitan statistical area, with the addition of three bank branches in Franklin County and the Smith Mountain Lake region.
Keefe, Bruyette & Woods, Inc., served as a financial advisor to American National while MainStreet was advised by BB&T Capital Markets, an arm of BB&T Corporation (BBT).
American National currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the south-east banks space include Bank of the Ozarks, Inc. (OZRK) and Farmers Capital Bank Corporation (FFKT). Both the stocks hold a Zacks Rank #1 (Strong Buy).
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