trending Market Intelligence /marketintelligence/en/news-insights/trending/CWHz-auZuhGnUhRnnqY4lA2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Pinnacle Bankshares, Virginia Bank Bankshares agree to merge

Street Talk - Ep. 64: Coronavirus jumpstarts digital adoption

Street Talk Podcast

Street Talk - Ep. 63: Deal talks continue amid bank M&A freeze, setting up for strong Q4

Street Talk Podcast

Street Talk - Ep. 62: 'Brutal' outlook for oil demand offers banks in oil patch no relief

Amid Q1 APAC Fintech Funding Slump, Payment Companies Drove Investments


Pinnacle Bankshares, Virginia Bank Bankshares agree to merge

Altavista, Va.-based Pinnacle Bankshares Corp. and Danville, Va.-based Virginia Bank Bankshares Inc. have agreed to combine in a strategic merger.

The transaction is expected to be completed in the third quarter. The combined company would have about $703 million in total assets, $624 million in total deposits and $537 million in loans, based on reported amounts as of Sept. 30, 2019, according to a news release.

Under the terms of the deal, Virginia Bank Bankshares shareholders can elect to receive either $16.00 cash or 0.5000 of a Pinnacle Bankshares common share for each Virginia Bank Bankshares common share held, 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 Bankshares shareholders will own 71% of the combined company, and Virginia Bank Bankshares shareholders will own about 29%.

S&P Global Market Intelligence calculates the deal value at $29.0 million.

On a per-share basis, the deal value is 119.1% of book and tangible book, and 15.4x earnings. The deal value is also 13.10% of assets and 15.02% of deposits, and the tangible book premium to core deposits ratio is 2.54%.

S&P Global Market Intelligence valuations for bank and thrift targets in the Southeast region between Jan. 21, 2019, and Jan. 21, 2020, averaged 158.87% of book and 166.17% of tangible book and had a median of 16.82x last-12-months earnings, on an aggregate basis.

Upon consummation of the transaction, Virginia Bank Bankshares will merge into Pinnacle Bankshares, with the latter as the surviving holding company. Virginia Bank Bankshares unit Virginia Bank and Trust Co. will merge into Pinnacle Bankshares subsidiary First National Bank, with First National Bank as the surviving entity.

Virginia Bank and Trust offices will be rebranded as First National Bank offices as systems are integrated. No office closures are expected as a result of the merger.

Based on S&P Global Market Intelligence data, Pinnacle Bankshares will enter the city of Danville, Va., with four branches to be ranked fifth with a 10.18% share of approximately $1.32 billion in total market deposits and will enter Pittsylvania County, Va., with three branches to be ranked fifth with a 9.07% share of about $377.9 million in total market deposits.

Following the mergers, the boards of Pinnacle Bankshares and First National Bank will include the current 13 directors of the company and the bank and five directors from Virginia Bank Bankshares.

Pinnacle Bankshares Chairman Jeb Burton will continue to serve as chairman of Pinnacle Bankshares and First National Bank. Virginia Bank Bankshares Chairman and CEO Donald Merricks will serve as vice chairman of Pinnacle Bankshares and First National Bank.

Pinnacle Bankshares President and CEO Todd Hall will continue to serve as president and CEO of Pinnacle Bankshares and First National Bank, while Virginia Bank and Trust President Jerry Oakes will become the Danville market president for First National Bank.

Banks Street Partners is acting as financial adviser and Troutman Sanders LLP is acting as legal adviser to Pinnacle Bankshares. Janney Montgomery Scott LLC is serving as financial adviser and Williams Mullen is acting as legal adviser to Virginia Bank Bankshares.

To use S&P Global Market Intelligence's branch analytics tools to compare market overlap, click here. To create custom maps, click here.

SNL Image