(RTTNews) - Thursday, bank holding company Premier Financial Bancorp, Inc. (PFBI: News ) announced the consummation of the merger of Abigail Adams National Bancorp (AANB: News ), effective October 1, 2009.

Under the terms of the merger agreement, Premier will issue 0.4461 shares of its common stock for each share of Adams common stock in a 100% stock exchange deal.

Other conditions precedent to completing the merger included final approval for Premier's participation in the Capital Purchase Program, or CPP, subject to satisfaction of standard closing conditions and the execution of definitive agreements and closing documents.

In April this year, Premier announced receiving preliminary approval for the sale of up to $24.1 million of preferred stock and related common warrants under CPP, conducted by the U.S. Treasury's Office of Financial Stability as part of Troubled Assets Relief Program to strengthen the financial sector.
The amount to be received by Premier was confirmed by the Treasury Department this week with an anticipated closing scheduled for October 2, 2009.

Adams is the parent company to two subsidiary banks, The Adams National Bank, headquartered in Washington, DC, and Consolidated Bank and Trust Company, headquartered in Richmond, Virginia.

PFBI is gaining $0.21 or 3.15% and is trading at $6.87 on a volume of 1,200 shares on the Nasdaq.

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by RTT Staff Writer

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