TowneBank to acquire N.C. bank for $476M

Suffolk-based TowneBank announced Tuesday that it has signed an agreement to acquire North Carolina-based Dogwood State Bank for about $475 million.

The move, approved by the boards of both companies, will expand TowneBank’s presence down the fast-growing Interstate 85 corridor from Richmond, Greenville, North Carolina and the upstate region of South Carolina. The transaction is expected to close in early 2026, pending regulatory approval and the approval of Dogwood’s shareholders.

Meanwhile, TowneBank is expected to close its $203 million acquisition of Old Point National Bank of Phoebus and its parent company, Old Point Financial Corp., on Sept. 1. With that purchase and the Dogwood acquisition, the combined bank’s total assets will reach close to $22 billion, loans of roughly $16 billion and deposits of about $19 billion.

Dogwood CEO Steve Jones will join TowneBank as president of its North Carolina and South Carolina banking operations, and be a member of the TowneBank corporate management team.

“It has been my pleasure to know Steve for a number of years and we have always admired the great job he and his team have done building Dogwood State Bank. We are excited to have Steve and his talented teammates join hands and hearts with our Towne family to take our Main Street Bank forward in the fast-growing North Carolina and South Carolina markets,” TowneBank Executive Chairman G. Robert Aston Jr. said in a statement.

Aston told Virginia Business the acquisition will increase TowneBank’s number of employees from about 2,800 to around 3,000. He said most of Dogwood’s employees will still be employed after the merger, although said there would be some consolidation, including 10% or less of the Dogwood workforce.

Jones said Dogwood State Bank’s director, Robin Perkins, will join the TowneBank corporate board of directors after the merger is completed.

“Today marks an exciting new chapter for our company,” Jones said in a statement. “After thoughtful consideration, we have agreed to join forces with TowneBank, whose vision and values align closely with our own. This partnership will bring new opportunities for our customers, employees, and shareholders, while building to the legacy we’ve created at Dogwood.”

Under the terms of the merger agreement, TowneBank states that common shareholders of Dogwood will receive a fixed exchange ratio of 0.700 shares of TowneBank common stock for each outstanding share of Dogwood common stock. This implies a deal value per share of $25.04 or approximately $476.2 million based on TowneBank’s 15-day average closing stock price of $35.77 on Aug. 18.

Founded in 1999, TowneBank has 58 locations across Central and Eastern Virginia and North Carolina. It had total assets of $17.25 billion as of Dec. 31, 2024.

Dogwood State Bank is a state-chartered community bank headquartered in Raleigh, North Carolina, with approximately $2.4 billion in total assets as of June 30. Dogwood has 17 branch offices in North Carolina, South Carolina and Eastern Tennessee.