STRASBURG, Va. and PRINCE GEORGE, Va. - First National Corporation (NASDAQ: FXNC), the parent company of First Bank (NASDAQ:FRBA), and Touchstone Bankshares, Inc. (OTCPK: TSBA), the holding company for Touchstone Bank, have announced the receipt of all required regulatory approvals to proceed with their planned all-stock merger. The merger, which was previously disclosed, is set to be finalized in the fourth quarter of 2024, subject to approval by shareholders of both companies at special meetings scheduled for August 29, 2024.
"We are pleased to have received regulatory approval of our Merger that will accelerate our growth trajectory and drive long-term shareholder value," said Scott Harvard, President and Chief Executive Officer of First National. The merger is expected to expand First National's presence in the Richmond metro area with the addition of seven Touchstone branches.
Upon completion, the merger will result in a combined entity with approximately $2.1 billion in assets, $1.8 billion in deposits, and $1.5 billion in loans, based on figures as of March 31, 2024. Touchstone Bank customers will receive detailed information regarding their account transitions in February 2025. Until the account conversion is complete, both banks will continue to serve their customers through existing branches, websites, and mobile apps.
First Bank, a community bank established in 1907, operates 20 branch locations and provides traditional banking services, wealth management, and title insurance services. Touchstone Bank, founded in 1906, offers banking products through a network of branches, loan centers, and ATMs, as well as online and mobile banking platforms.
InvestingPro Insights
As First National Corporation (NASDAQ: FXNC) gears up to finalize its all-stock merger with Touchstone Bankshares, Inc., the company's financial health and shareholder value are of keen interest to investors. According to recent data from InvestingPro, First National Corporation has a market capitalization of approximately $106.14 million, reflecting its size and market presence within the banking industry.
The company's P/E ratio, a key indicator of market expectations about the company's earnings growth, stands at 13.41, which aligns with its adjusted P/E ratio for the last twelve months as of Q2 2024. This metric suggests a reasonable valuation relative to the company's earnings. Additionally, First National Corporation boasts a Price / Book ratio of 0.89, suggesting that the stock may be undervalued compared to the company's book value.
An InvestingPro Tip highlights the company's commitment to returning value to shareholders, as First National Corporation has raised its dividend for 10 consecutive years and maintained dividend payments for 11 consecutive years. This consistent dividend history is an attractive feature for income-focused investors. Meanwhile, analysts are optimistic about the company's financial outlook, predicting profitability for the current year, a sentiment supported by the company being profitable over the last twelve months.
Investors looking for further insights on First National Corporation's financial performance and future prospects can find additional InvestingPro Tips at https://www.investing.com/pro/FXNC, which currently lists a total of 5 tips, including those mentioned above.
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