On July 1, 2016, Cardinal Bankshares Corporation and Grayson Bankshares Inc. completed their previously announced merger with and into Parkway Acquisition Corp., a new bank holding company formed for the purpose of effecting their combination.
With the completion of the merger, the subsidiary banks of Bank of Floyd and Grayson National Bank are now combined into one national bank regulated by the Office of the Comptroller of the Currency. The newly formed holding company and bank will rebrand itself when the banks' customer systems are combined, expected sometime in early 2017.
"Our combination creates a dynamic community bank dedicated to serving our hometown communities and adjacent markets. We believe that individuals and businesses in our area prefer to do business locally when they can, and we intend to be the local bank of choice," said Chairman Tom Jackson.
"Now that our combination is complete from a legal standpoint," explained Allan Funk, President & CEO of the holding company and combined bank, "we are preparing for our systems conversion, operations integration and rebranding so that our customers will do business with one seamless organization represented by the employees they have known for years."
Both Cardinal and Grayson shareholders will receive shares of stock in the newly formed company. The company has applied for quotation and trading of the new shares on the OTCQX marketplace.
The combined organization has 17 full-service banking offices, assets of nearly $600 million, deposits of over$500 million and shareholders' equity of over $50 million. The combined company is governed by a board of directors comprised of each of the former directors of Cardinal and Grayson. Thomas M. Jackson, Jr., serves as chairman of the board of Parkway Acquisition Corp. and its subsidiary bank, and James Shortt, serves as vice chairman of Parkway Acquisition Corp. and subsidiary bank. Allan Funk is President & CEO and Blake Edwards is Chief Financial Officer of the holding company and combined bank.
In the combination, Raymond James & Associates, Inc. served as financial advisor to Grayson, and Williams Mullen provided legal counsel to Grayson. Banks Street Partners, LLC served as financial advisor to Cardinal, and Gentry Locke provided legal counsel to Cardinal.
