American National Bankshares Inc. in Danville, Va., announced it is buying MidCarolina Financial Corp. for $38.8 million.
The $824 million-asset American National will exchange 0.33 shares of its stock for each share of MidCarolina, which is based in Burlington, N.C.
The rate is roughly equal to $7.25 a share, or 104% of MidCarolina's tangible book value at Sept. 30.
"The communities MidCarolina serves are good markets with strong potential for the future," said Charles Majors, American National's chief executive, in a press release Thursday.
Majors would be president and CEO. Charles Canaday Jr., CEO of the $552 million-asset MidCarolina, would become president of North Carolina banking.
The deal is to close in the second quarter.
