Rare Ten-Way Merger Among Virginia Banks

MARTINSVILLE, Va. -- The boards of 10 small local banks announced Monday they have agreed to combine their institutions to create the largest state chartered commercial bank in Virginia. The rare merger is reminiscent of an even-rarer 12-way combination ongoing among credit unions affiliated with State Farm Insurance to create a single $3 billion credit union. The Virginia banks: Blue Ridge Bank, Floyd; Central National Bank, Lynchburg; Community National Bank, South Boston; First National Bank, Rocky Mount; First National Exchange Bank, Roanoke; Mountain National Bank, Galax; Patrick Henry National Bank, Martinsville; Patriot Bank, Fredericksburg; Peoples National Bank, Danville; and Shenandoah National Bank, Staunton, will combine to form a new Virginia chartered financial institution under the name of Carter Bank & Trust. The new bank will operate 126 branches in Virginia and North Carolina and will seek to open another 25 branches.