TowneBank is one step closer to its acquisition of Franklin Federal.
A Glen Allen bank that’s in the midst of one of the year’s biggest local mergers got the go-ahead from its shareholders on Wednesday.
Shareholders of Franklin Financial Corp., parent company of Franklin Federal Savings Bank, have voted in favor of the company’s pending deal to be acquired by Hampton Roads-based TowneBank.
Franklin Federal held a shareholder meeting on Wednesday morning at the Glen Allen Cultural Arts Center. About 80 percent of the bank’s shareholders voted on the merger, and 99 percent of those voted in favor of the deal.
TowneBank’s shareholders also approved the deal at a Wednesday meeting.
“It was brief, to the point and successful,” said Franklin Federal CEO Rick Wheeler. “We are now officially engaged to TowneBank.”
Bob Aston
The deal, valued at $275 million, was first announced in July. It has been approved by the boards of both companies and by federal regulators. All that stands in the way now is pending approval from the state banking regulator.
TowneBank CEO Bob Aston said the two sides are aiming to have the deal finalized by Jan. 1 and to have Franklin Federal branches open for business under the TowneBank banner on Jan. 5.
“Over the next few months, we’ll assess each location,” Aston said. “Those that need to be upgraded, we’ll do that. Those that need to be relocated, we’ll begin to think about that.”
Franklin Federal is still dealing with a nagging lawsuit filed in October by a shareholder who who claims the merger was flawed and undervalued the company.
The bank continues to fight to toss out the suit and in court documents called it an “abuse the litigation process in hopes of extorting a settlement.”
TowneBank is one step closer to its acquisition of Franklin Federal.
A Glen Allen bank that’s in the midst of one of the year’s biggest local mergers got the go-ahead from its shareholders on Wednesday.
Shareholders of Franklin Financial Corp., parent company of Franklin Federal Savings Bank, have voted in favor of the company’s pending deal to be acquired by Hampton Roads-based TowneBank.
Franklin Federal held a shareholder meeting on Wednesday morning at the Glen Allen Cultural Arts Center. About 80 percent of the bank’s shareholders voted on the merger, and 99 percent of those voted in favor of the deal.
TowneBank’s shareholders also approved the deal at a Wednesday meeting.
“It was brief, to the point and successful,” said Franklin Federal CEO Rick Wheeler. “We are now officially engaged to TowneBank.”
Bob Aston
The deal, valued at $275 million, was first announced in July. It has been approved by the boards of both companies and by federal regulators. All that stands in the way now is pending approval from the state banking regulator.
TowneBank CEO Bob Aston said the two sides are aiming to have the deal finalized by Jan. 1 and to have Franklin Federal branches open for business under the TowneBank banner on Jan. 5.
“Over the next few months, we’ll assess each location,” Aston said. “Those that need to be upgraded, we’ll do that. Those that need to be relocated, we’ll begin to think about that.”
Franklin Federal is still dealing with a nagging lawsuit filed in October by a shareholder who who claims the merger was flawed and undervalued the company.
The bank continues to fight to toss out the suit and in court documents called it an “abuse the litigation process in hopes of extorting a settlement.”