Proposed Merger with MainStreet Bankshares

9 Months Ended

Sep. 30, 2014

Proposed Merger with MainStreet Bankshares [Abstract]

Proposed Merger with MainStreet Bankshares [Text Block]

Note 16 – Proposed Merger

On August 25, 2014, the Company announced that it had entered into an Agreement and Plan of Reorganization, dated August 24, 2014, with MainStreet Bankshares, Inc. ("MainStreet"), pursuant to which it will acquire MainStreet in a business combination transaction.  MainStreet is headquartered in Martinsville, Virginia and the transaction will expand the Company's footprint into the Roanoke, Virginia metropolitan statistical area adding three branches in Franklin County.  The Company expects that it will have approximately $1.5 billion in assets upon completion of the merger.

Pursuant and subject to the terms of the merger agreement, as a result of the merger, the holders of shares of MainStreet common stock will receive 0.482 shares of the Company's common stock and $3.46 in cash for each share of MainStreet common stock held immediately prior to the effective date of the merger.

Subject to customary closing conditions, including regulatory and shareholder approvals, the Company expects the merger to close in early January 2015. Following completion of the merger, MainStreet's subsidiary bank, Franklin Community Bank, will be merged into American National Bank and Trust Company.