National Bankshares, Inc. (Nasdaq: NKSH - “National
Bankshares” or the “Company”), the holding company for The National
Bank of Blacksburg (“National Bank”), completed its acquisition of
Frontier Community Bank (“Frontier”) effective June 1, 2024.
Following the transaction, valued at approximately $16.07 million,
National Bankshares now operates 27 full-service offices along with
two loan production offices, and has approximately $1.8 billion in
total assets.
Under the previously announced terms of the merger, each share
of Frontier common stock was converted into $14.48 in cash or
0.4250 shares of National Bankshares common stock, with Frontier
shareholders having the ability to elect the merger consideration
to be received, subject to the allocation and proration procedures
set forth in the merger agreement.
Frontier was merged with and into National Bank on June 1, 2024.
The three former Frontier branches located in Waynesboro, Staunton,
and Lynchburg, Virginia opened under the National Bank name on
Monday, June 3, 2024.
Commenting on the completed merger, F. Brad Denardo, President
and Chief Executive Officer of National Bankshares, said, “We are
excited to welcome Frontier’s customers, employees, and
shareholders to the National Bankshares family. Frontier’s
customers have come to expect outstanding personalized service and
local decision-making from bankers who care about their
communities. That is exactly what we will continue to deliver as a
combined organization, with the benefits of expanded service
offerings, a larger branch footprint, and the opportunity to
enhance shareholder return.”
Alan Sweet, former President and Chief Executive Officer of
Frontier, will serve on the boards of directors of National
Bankshares and National Bank. He added, “National Bankshares and
Frontier were very aligned in terms of culture and values, making
this merger a natural fit. National Bankshares is well-positioned
to continue Frontier’s tradition of personalized customer service,
and this merger will only serve to further benefit our customers,
our bankers, and our shareholders.”
About National Bankshares
National Bankshares, Inc., headquartered in Blacksburg,
Virginia, is the parent company of The National Bank of Blacksburg,
which does business as National Bank, and of National Bankshares
Financial Services, Inc. National Bank is a community bank
operating from 27 full-service offices in southwest and central
Virginia, and two loan production offices in Roanoke and
Charlottesville, Virginia. National Bankshares Financial Services,
Inc. is an investment and insurance subsidiary in the same trade
area. The Company’s stock is traded on the Nasdaq Capital Market
under the symbol “NKSH.”
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. In some cases, forward-looking statements can be identified
by use of words such as “may,” “will,” “anticipates,” “believes,”
“expects,” “plans,” “estimates,” “potential,” “continue,” “should,”
and similar words or phrases. These statements are based upon
current and anticipated economic conditions, nationally and in the
Company’s market, interest rates and interest rate policy,
competitive factors, and other conditions which by their nature,
are not susceptible to accurate forecast and are subject to
significant uncertainty. Although the Company believes that its
expectations with respect to forward-looking statements are based
upon reasonable assumptions within the bounds of the Company’s
existing knowledge of its business and operations, there can be no
assurance that actual future results, performance, achievements, or
trends will not differ materially from any projected future
results, performance, achievements or trends expressed or implied
by such forward-looking statements. Actual future results,
performance, achievements or trends may differ materially from
historical results or those anticipated depending on a variety of
factors, including, but not limited to, the following: the
businesses of the Company and Frontier may not be combined
successfully; the expected growth opportunities or cost savings
from the merger with Frontier may not be fully realized or may take
longer to realize than expected; deposit attrition, operating
costs, customer losses and business disruption following the merger
with Frontier, including adverse effects on relationships with
employees and customers, may be greater than expected; the level of
inflation; interest rates; national and local economic conditions;
monetary and fiscal policies of the U.S. Government, including
policies of the U.S. Treasury, the Office of the Comptroller of the
Currency, the Board of Governors of the Federal Reserve System, the
Consumer Financial Protection Bureau and the Federal Deposit
Insurance Corporation, and the impact of any policies or programs
implemented pursuant to financial reform legislation; unanticipated
increases in the level of unemployment in the Company’s market; the
quality or composition of the loan and/or investment portfolios;
the sufficiency of the Company’s allowance for credit losses;
demand for loan products; deposit flows, including impact on
liquidity; competition; demand for financial services in the
Company’s market; the real estate market conditions in the
Company’s market; laws, regulations and policies impacting
financial institutions; adverse developments in the financial
industry generally, such as the recent bank failures, responsive
measures to mitigate and manage such developments, related
supervisory and regulatory actions and costs, and related impacts
on customer behavior; technological risks and developments, and
cyber-threats, attacks or events; the Company’s technology
initiatives; geopolitical conditions, including acts or threats of
terrorism and/or military conflicts, or actions taken by the U.S.
or other governments in response to acts or threats of terrorism
and/or military conflicts; the occurrence of significant natural
disasters, including severe weather conditions, floods, and other
catastrophic events; the Company's ability to identify, attract,
and retain experienced management, relationship managers, and
support personnel, particularly in a competitive labor environment;
performance by the Company’s counterparties or vendors; applicable
accounting principles, policies and guidelines; the impact of
public health events, including the adverse impact on our business
and operations and on our customers; and other factors described
from time to time in the Company’s reports (such as our Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K) filed with the Securities and Exchange
Commission. These risks and uncertainties should be considered in
evaluating forward-looking statements and undue reliance should not
be placed on such statements. The Company does not undertake, and
specifically disclaims any obligation, to publicly release the
result of any revisions which may be made to any forward-looking
statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or
unanticipated events.
CONTACTS: |
F. Brad Denardo, Chairman, President & CEO(540) 951-6213
bdenardo@nbbank.com |
Lora M. Jones, Treasurer & CFO(540) 951-6238
ljones@nbbank.com |
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