TowneBank has received all the necessary approvals to acquire Richmond’s Franklin Federal Savings Bank.
The year’s biggest bank deal is ready for the closing table.
Richmond-based Franklin Federal Savings Bank and its pending acquirer TowneBank got the green light last week from the State Corporation Commission, the last major obstacle standing in the way of sealing the $275 million deal.
Shareholders of both banks voted in favor of the acquisition earlier this month. Federal regulators had already approved it, as had the banks’ boards of directors.
The banks expect to finalize the transaction by Jan. 2 and to have Franklin Federal’s eight Richmond-area branches open for business under the TowneBank banner on Jan. 5.
The deal will give Suffolk-based TowneBank its first major presence in the Richmond market. It has grown to $4.7 billion in assets and is the largest community bank in Hampton Roads.
And Franklin Federal also cleared away a nagging lawsuit last week.
A federal judge in Richmond threw out a case that had been filed against the bank and some of its executives and directors by a shareholder who disagreed with the structure of the merger with TowneBank. The case sought class action status and claimed the merger was flawed and undervalued the company.
It was ultimately dismissed on Dec. 11 with prejudice, meaning it cannot be refiled in another court.
TowneBank has received all the necessary approvals to acquire Richmond’s Franklin Federal Savings Bank.
The year’s biggest bank deal is ready for the closing table.
Richmond-based Franklin Federal Savings Bank and its pending acquirer TowneBank got the green light last week from the State Corporation Commission, the last major obstacle standing in the way of sealing the $275 million deal.
Shareholders of both banks voted in favor of the acquisition earlier this month. Federal regulators had already approved it, as had the banks’ boards of directors.
The banks expect to finalize the transaction by Jan. 2 and to have Franklin Federal’s eight Richmond-area branches open for business under the TowneBank banner on Jan. 5.
The deal will give Suffolk-based TowneBank its first major presence in the Richmond market. It has grown to $4.7 billion in assets and is the largest community bank in Hampton Roads.
And Franklin Federal also cleared away a nagging lawsuit last week.
A federal judge in Richmond threw out a case that had been filed against the bank and some of its executives and directors by a shareholder who disagreed with the structure of the merger with TowneBank. The case sought class action status and claimed the merger was flawed and undervalued the company.
It was ultimately dismissed on Dec. 11 with prejudice, meaning it cannot be refiled in another court.