Virginia National Bankshares has signed a definitive agreement to merge with Fauquier Bankshares.

The deal was unanimously approved by the board of directors of both the banks.

The financial details of the transaction have not been divulged.

Under the deal terms, shareholders of Fauquier will receive 0.6750 shares of Virginia National common stock in exchange for each Fauquier common stock held.

Following the merger of Fauquier into Virginia National, Virginia National shareholders will own 51.4% of the merged entity, and Fauquier shareholders will own 48.6%.

Fauquier will merge into Virginia National, and Virginia National will be surviving holding company.

After the holding company merger, The Fauquier Bank will merge into Virginia National Bank (VNB) and VNB will be the surviving bank.

Offices of The Fauquier Bank will be rebranded as VNB offices after systems are integrated, while Virginia National’s headquarters will continue to be in Charlottesville, Virginia.

The combined company has nearly $1.6bn in total assets, $1.4bn in deposits, $1.3bn in loans and over $1bn in assets under management (AUM) as of 30 June 2020.

Virginia National president and CEO Glenn Rust said: “Our entire team is honoured to be entering this partnership with The Fauquier Bank, and I look forward to the leadership of The Fauquier Bank joining our team and bringing their expertise and experience to our organization.”

The Fauquier Bank president and CEO Marc Bogan said: “The enhanced scale and complementary business lines resulting from this transaction provide the best opportunity for both banks to better serve our major constituencies: our clients, our employees, our shareholders and our communities. “

Subject to the receipt of shareholder and regulatory approvals, the merger is expected to be completed in the first half of 2021.