Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, May 19, 1995 TAG: 9505190100
SECTION: BUSINESS PAGE: A11 EDITION: METRO
SOURCE: MAG POFF
DATELINE: LENGTH: Short
The bank said that its downtown Galax, east Galax and Hillsville offices will become a separate institution to be named Mountain National Bank. The Lexington, Staunton and Waynesboro offices will be spun off into another entity that will be named Valley National Bank. Patrick Henry National Bank will retain five of its offices: Martinsville, U.S. 220 South, Bassett, Collinsville and Stuart.
Directors of the bank said the reorganization will contribute to plans to expand operations in the Shenandoah Valley area, where management plans to add a branch next year.
It also will facilitate plans to branch Patrick Henry National Bank into North Carolina. The bank said it would open a branch in Eden, N.C., in the first half of 1996 and another North Carolina branch office shortly afterward.
The spinoff will involve a tax-free distribution of stock in the new banks to Patrick Henry National shareholders. Shareholders will receive one share of Mountain National Bank for every five shares of Patrick Henry stock and one share of Valley National Bank for every 10 shares of Patrick Henry stock.
Stock ownership in Patrick Henry National Bank will not change as a result of the reorganization, and no new stock will be sold in the transaction.
The bank plans to complete the reorganization by Jan. 1 subject to approval by regulators and shareholders. A meeting of shareholders will be scheduled in the third or fourth quarter.
by CNB