The parent company of First Bank announced an agreement Thursday to acquire the Bank of Fincastle.
First Bank, which has 14 offices, is based in the Shenandoah Valley community of Strasburg, near the junction of Interstates 81 and 66. It opened in 1907. Bank of Fincastle, which has six offices, has been in business since 1875.
“With this combination, First Bank will extend its reach from the top of Virginia south down the I-81 corridor to Roanoke, ensuring our small and mid-sized Virginia markets continue to be served by an independent Virginia community bank,” said Scott Harvard, president and CEO of First National Corp., the parent company, in a prepared release.
Assuming the deal goes through, the action will eliminate a locally based bank. Bank of Fincastle is one of four banks based in the Roanoke-Blacksburg region, the others being National Bank of Blacksburg, Bank of Botetourt and Farmers and Merchants Bank of Craig County. Bank of Fincastle’s market share in the Roanoke metro area was 2.86% on June 30, according to the Federal Deposit Insurance Corp.
Scott Steele, president and CEO of the Fincastle bank, said in his prepared statement: “I am enthusiastic about the opportunity we have to partner with First National in a transaction that we believe offers significant opportunities to our clients, communities, employees and shareholders. This partnership is an excellent opportunity to create value for both institutions.” He will stay with the combined organization created by the planned merger and serve as a Fincastle-based regional president, Harvard said.