TowneBank to acquire Village Bank for $120M

Suffolk-based TowneBank has signed a definitive agreement to acquire Midlothian’s Village Bank and its parent company, Village Bank and Trust Financial, a deal worth approximately $120 million, the banks announced Tuesday.

“Our TowneBank family is humbled and excited to partner with Village Bank and its team members,” TowneBank Executive Chairman G. Robert Aston Jr. said in a statement. “We believe our partnership can bring additional products and expanded services to the clients of Village Bank while meaningfully enhancing our Richmond presence, which is core to our franchise and future growth.”

The merged companies will have total assets of $17.8 billion, $14.9 billion in deposits and $12.1 billion in loans, based on financial information reported as of June 30.

Shareholders of the Village Bank parent will receive $80.25 in cash per share for each share of its outstanding common stock. Based on Village Bank and Trust Financial’s common stock currently outstanding, the total transaction value would be about $120 million.

“We’re excited to partner with TowneBank,” Jay Hendricks, president and CEO of Village Bank, said in a statement. “This merger is not just a business decision but a strategic move to enhance the value we deliver to our customers.”

The boards of directors of TowneBank and the Village parent have approved the definitive agreement. The transaction is expected to close in the first half of 2025, pending regulatory approval and Village shareholders’ approval.

Founded in 1999, TowneBank has more than 50 locations across Central and Eastern Virginia and North Carolina. As of June 30, it had $17.1 billion in total assets.

Village Bank was also founded in 1999. It has nine branch offices serving the greater Richmond area and Williamsburg. As of June 30, parent company Village Bank and Trust Financial had total assets of $747.7 million.