American National Bankshares, MainStreet BankShares Announce Merger Agreement

(RTTNews) - American National Bankshares Inc. (AMNB) and MainStreet BankShares, Inc. (MREE.PK) announced the signing of an agreement which calls for MainStreet to merge with American National in a transaction valued at approximately $24.2 million. Shareholders of MainStreet common stock will receive 0.482 shares of American National common stock and $3.46 in cash for each share of MainStreet they own. MainStreet shareholders will own approximately 10 percent of the combined company.

The transaction expands American National's footprint into the Roanoke, Va., metropolitan statistical area, adding three bank branches in Franklin County and the Smith Mountain Lake area. American National will have approximately $1.5 billion in assets upon completion of the merger. American National expects the transaction will be accretive to earnings per share.

American National has proposed that MainStreet's Board Chairman, Joel Shepherd, be added to the board upon completion of the merger.