TowneBank is entering the Richmond market in a big way.
The $4.8 billion Hampton Roads-based bank announced this morning a deal to acquire Richmond’s Franklin Federal Savings Bank and its publicly traded holding company. The transaction is valued at $275 million and is expected to close later this year.
It will give TowneBank an immediate foothold in the market by taking on Franklin Federal’s eight Richmond branches, including its Innsbrook headquarters. Adding Franklin’s $1 billion in assets will boost TowneBank’s size to $5.9 billion.
TowneBank CEO Bob Aston said entering the market through acquisition allows the bank a bigger launching pad than starting here from scratch.
“It’s a great opportunity for us and for them,” said Aston. “They obviously get to join up with us and pick up a lot of new products and services. We get the benefit of having a ready-made branch system and nice main office, and a good group of people.”
The decades-old Franklin Federal brand will be phased out, and the bank will operate here as TowneBank of Richmond.
Veteran local banker Pat Collins, who was recently hired by TowneBank as it looked to enter the market, will serve as president and CEO of the combined Richmond operations.
Rick Wheeler, Franklin Federal’s CEO, will take on an advisory role and a seat on the TowneBank board.