Pinnacle Bankshares and Virginia Bank Bankshares will delay the previously announced merger of Virginia Bank with and into Pinnacle due to the COVID-19 pandemic and the resulting volatility in U.S. financial markets.
Pinnacle and Virginia Bank remain fully committed to completing this transaction once the uncertainty surrounding the pandemic subsides. Based upon currently available information, Pinnacle and Virginia Bank now anticipate the closing of the merger at the end of Q3/20 or Q4/20. However, the closing could occur earlier or later depending on how the COVID-19 outbreak develops and on conditions in Pinnacle’s and Virginia Bank’s markets and the national economy and financial markets.
“We continue to believe this transformational merger with Virginia Bank remains an important strategic initiative for the customers and employees of both banks and is financially attractive to our shareholders,” Aubrey H. (Todd) Hall, III, president and CEO of Pinnacle, said. “The merger is still a tremendous opportunity to combine two neighboring community banks with similar cultures and philosophies to create an even stronger entity. We remain committed to the merger and believe pursuing the merger’s completion is in the best interest of Pinnacle and Virginia Bank.”
As part of the merger’s delay, filings with federal and state banking regulators and the Securities and Exchange Commission and Pinnacle’s and Virginia Bank’s respective shareholder meetings will be delayed. Both management teams will communicate updates regarding the merger, including dates for the meetings of shareholders, when that information is available.
“The outbreak of COVID-19 brings many challenges to us as an institution and our community. We believe these events demonstrate the value creation opportunities of merging with Pinnacle,” Donald W. Merricks, chairman and CEO of Virginia Bank, said. “As one entity, we will be stronger and more prepared to weather adverse economic environments while enhancing shareholder value.”
Pinnacle Bankshares is a locally managed community banking organization based in central Virginia.
Virginia Bank Bankshares is the bank holding company for Virginia Bank and Trust Company.
