TowneBank has agreed to acquire Dogwood State Bank, a state-chartered community bank headquartered in Raleigh, North Carolina, for approximately $476m.
The deal is expected to bolster TowneBank’s presence along the Interstate 85 corridor, stretching from Richmond, Virginia, to Greenville and the upstate area of South Carolina.
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According to the merger agreement, Dogwood’s common shareholders will receive a fixed exchange ratio of 0.700 shares of TowneBank common stock for each share of Dogwood common stock they hold.
Dogwood State Bank had approximately $2.4bn in total assets as of 30 June 2025.
The bank provides a diverse range of banking products and services through its online platform and 17 branch locations across North Carolina, South Carolina, and Eastern Tennessee.
Steve Jones, the CEO of Dogwood, will assume a leadership position within the merged organisation, taking on the role of president for TowneBank’s operations in North Carolina and South Carolina, and will be part of the TowneBank Corporate Management team.
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By GlobalDataTowneBank executive chairman Robert Aston, Jr. said: “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.”
Upon completion of the acquisition, alongside TowneBank’s pending purchase of Old Point Financial, which is anticipated to close on 1 September 2025, the combined entity is projected to possess total assets nearing $22bn, with loans amounting to around $16bn and deposits about $19bn.
The merger is expected to be finalised in early 2026, pending customary conditions, including regulatory approval and the endorsement of Dogwood’s shareholders.
Raymond James & Associates acted as the financial advisor for TowneBank, while Wachtell, Lipton, Rosen & Katz provided legal counsel.
Dogwood was advised by Piper Sandler and received legal support from Williams Mullen.
TowneBank, which offers banking and financial services, operates more than 55 branches across Hampton Roads, Central Virginia, and parts of North Carolina.
