First National Corporation (FXNC), a bank holding firm, and Touchstone Bankshares, Inc. (TSBA), a commercial lender, announced on Tuesday that they have entered into a deal for First National to acquire Touchstone in an all-share transaction for around $47 million.
The new entity will be the combination of two community banks, and is expected to be the ninth largest Virginia community bank as ranked by deposits, First National said in statement.
"First National expects the transaction to be approximately 36% accretive to earnings per share with an estimated earn-back period for tangible book value dilution of approximately 3.0 years," the company added.
Under the terms, Touchstone shareholders will receive 0.8122 shares of First National for each share of Touchstone.
Based on First National's closing price of $17.55 as of March 22, this equates to an aggregate deal value of around $47 million, or $14.25 per share of Touchstone.
The combined company will bring total assets of around $2.1 billion, with $1.5 billion in loans, $1.8 billion in deposits, thirty branch offices across Virginia and two branches in North Carolina.
As of December 31, 2023, Touchstone reported total assets of $658.7 million, gross loans of $508.8 million, and total deposits of $542.2 million.
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