TownBank of Virginia to acquire Dogwood Bank in North Carolina for a deal worth $476.2 million dollars
TowneBank, a Virginia-based financial institution, has announced its third acquisition of the year, this time in the form of an all-stock deal to acquire Dogwood State Bank. The deal, valued at approximately $476.2 million, will add about $2.4 billion in assets and $2 billion in deposits to TowneBank's portfolio, significantly enhancing its market presence along the Interstate 85 corridor and in Eastern North Carolina.
Once the deal closes, expected in Q1 2026, TowneBank is projected to hold $22 billion in assets, $16 billion in loans, and $19 billion in deposits. The acquisition will extend TowneBank’s footprint in key North Carolina markets—Raleigh, Greensboro-Winston Salem, Greenville, Charlotte—and coastal areas from the Outer Banks to Wilmington and Charleston, South Carolina.
Dogwood shareholders will receive 0.7 shares of TowneBank common stock per Dogwood share, at a deal price of $25.04 per share based on TowneBank’s recent average stock price. Robin Perkins, CEO of Spinners Capital and a director on Dogwood’s board, will join TowneBank’s board once the transaction closes.
Steve Jones, CEO of Dogwood State Bank, will join TowneBank as president of North and South Carolina banking operations. He expressed excitement about the deal, describing it as an "exciting new chapter" for the bank, highlighting the alignment of TowneBank’s vision and values with their own. G. Robert Aston Jr., TowneBank's executive chair, also praised Dogwood's work, stating his enthusiasm about the acquisition.
In a separate announcement, First Financial Bancorp, based in Cincinnati, has announced it will buy BankFinancial Corp. in a $142 million deal. The acquisition is set to close in the fourth quarter. First Financial Bancorp has also agreed to acquire Westfield Bancorp for $325 million. Both deals are expected to close in the fourth quarter as well.
[1] TowneBank's third acquisition of 2025 is the all-stock deal to acquire Dogwood State Bank, valued at approximately $476.2 million, expected to close in Q1 2026. [2] The acquisition extends TowneBank’s footprint in key North Carolina markets—Raleigh, Greensboro-Winston Salem, Greenville, Charlotte—and coastal areas from the Outer Banks to Wilmington and Charleston, South Carolina. [3] Dogwood shareholders will receive 0.7 shares of TowneBank common stock per Dogwood share, at a deal price of $25.04 per share based on TowneBank’s recent average stock price. [4] Upon closing, the pro forma combined entity, including TowneBank's pending acquisition of Old Point Financial Corporation, will have approximately $22 billion in assets, $16 billion in loans, and $19 billion in deposits. [5] TowneBank expects the Dogwood acquisition to be approximately 8.0% accretive to earnings per share by 2027, including fully phased-in cost savings on a GAAP basis.
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