TowneBank of Virginia agrees to acquire Dogwood Bank in North Carolina for a $476.2 million purchase deal

In a significant move, TowneBank, a Virginia-based financial institution, has announced it will be acquiring two regional banks in separate deals worth over $800 million. The acquisitions, which are set to close in the coming months, will see TowneBank expand its footprint and increase its assets, deposits, and loans significantly.

Firstly, TowneBank has agreed to acquire Dogwood State Bank in a roughly $476.2 million deal. Steve Jones, CEO of Dogwood State Bank, will join TowneBank as president of North and South Carolina banking operations and will hold the position of President of North Carolina and South Carolina at TowneBank after the merger. He expressed his excitement about the acquisition, stating that Dogwood has found a partner with vision and values that align closely with their own. Robin Perkins, CEO of Spinners Capital and a director on Dogwood's board, will also join TowneBank's board once the transaction closes.

The Dogwood acquisition will add 17 branches to TowneBank's more than 55-location footprint, expanding its presence in markets along the I-85 corridor: Raleigh, Greensboro, Charlotte in North Carolina, and Greenville, South Carolina. Once the deal closes, TowneBank will hold $22 billion in assets, $19 billion in deposits, and $16 billion in loans. TowneBank expects the Dogwood acquisition to be roughly 8% accretive to earnings per share by the end of 2027.

In a separate deal, TowneBank is engaging in the acquisition of Old Point Financial. The exact value of this deal has not been disclosed, but it is expected to close in early 2026. TowneBank is also expecting to close its acquisition of Village Bank and Trust Financial Corp. on April 1.

Meanwhile, Cincinnati-based First Financial Bancorp has announced it will buy Burr Ridge, Illinois-based BankFinancial Corp. in a $142 million deal and Cleveland-area lender Westfield Bancorp for $325 million. These acquisitions are set to close in the fourth quarter. The details of these deals, including the commercial and retail aspects, have not been disclosed.

G. Robert Aston Jr., TowneBank's executive chair, expressed his excitement about the acquisition and the addition of Steve Jones and his team to TowneBank. TowneBank is confident that these acquisitions will strengthen its position in the market and provide long-term value for its shareholders.

The news of these acquisitions comes at a time when the banking sector is undergoing significant changes, with many institutions looking to consolidate and expand their operations. TowneBank's moves demonstrate its commitment to growth and its strategic approach to the industry. As the deals close, TowneBank will undoubtedly emerge as a stronger and more formidable player in the banking landscape.

TowneBank of Virginia agrees to acquire Dogwood Bank in North Carolina for a $476.2 million purchase deal