TowneBank is set to acquire Village Bank next month.
TowneBank has all the pieces in place to buy a bigger piece of the Richmond market.
The Hampton Roads-based bank on Tuesday announced it has received all necessary approvals from state and federal regulators to complete its pending acquisition of Midlothian-based Village Bank.
The all-cash deal, valued at $120 million, is now set to close early next month. It would add Village’s $750 million in assets, to Towne’s $17 billion, plus give Towne an extra nine branches in the Richmond region to go along with its nine existing local locations.
The thumbs-up from the Virginia State Corporation Commission and FDIC followed approval from Village shareholders late last year. Boards of both banks had already previously approved the deal.
The deal was first announced last September.
The Village Bank name will remain temporarily following the closing of the deal. It would then be phased out in favor of the TowneBank brand in June, when the core systems of both banks are fully combined.
That means an end to the nearly 20-year run for the Village brand. Its roots date back to 1999 when it was founed in Midlothian as Southern Community Bank and Trust. It rebranded to Village a few years later and expanded in the region by acquiring Mechanicsville-based River City Bank in 2008.
Village has nine branches in the Richmond market that will become part of TowneBank.
Village Bank CEO Jay Hendricks is expected to stay on with TowneBank in a senior executive role to manage the bulk of Village’s commercial and retail bank operations.
The deal marks Towne’s second acquisition of a Richmond-area bank since it bought its way into the market in 2015 by absorbing Franklin Federal Savings Bank.
Towne was founded in Hampton Roads 25 years ago. Village would be its seventh acquisition since then.
The Towne-Village transaction will close around the same time as another local banking deal, albeit a much larger one.
Downtown-based Atlantic Union Bank is expected to close its acquisition of Maryland-based Sandy Spring Bank on April 1. That deal, $1.6 billion stock-for-stock transaction, would create a $39 billion banking behemoth.
TowneBank is set to acquire Village Bank next month.
TowneBank has all the pieces in place to buy a bigger piece of the Richmond market.
The Hampton Roads-based bank on Tuesday announced it has received all necessary approvals from state and federal regulators to complete its pending acquisition of Midlothian-based Village Bank.
The all-cash deal, valued at $120 million, is now set to close early next month. It would add Village’s $750 million in assets, to Towne’s $17 billion, plus give Towne an extra nine branches in the Richmond region to go along with its nine existing local locations.
The thumbs-up from the Virginia State Corporation Commission and FDIC followed approval from Village shareholders late last year. Boards of both banks had already previously approved the deal.
The deal was first announced last September.
The Village Bank name will remain temporarily following the closing of the deal. It would then be phased out in favor of the TowneBank brand in June, when the core systems of both banks are fully combined.
That means an end to the nearly 20-year run for the Village brand. Its roots date back to 1999 when it was founed in Midlothian as Southern Community Bank and Trust. It rebranded to Village a few years later and expanded in the region by acquiring Mechanicsville-based River City Bank in 2008.
Village has nine branches in the Richmond market that will become part of TowneBank.
Village Bank CEO Jay Hendricks is expected to stay on with TowneBank in a senior executive role to manage the bulk of Village’s commercial and retail bank operations.
The deal marks Towne’s second acquisition of a Richmond-area bank since it bought its way into the market in 2015 by absorbing Franklin Federal Savings Bank.
Towne was founded in Hampton Roads 25 years ago. Village would be its seventh acquisition since then.
The Towne-Village transaction will close around the same time as another local banking deal, albeit a much larger one.
Downtown-based Atlantic Union Bank is expected to close its acquisition of Maryland-based Sandy Spring Bank on April 1. That deal, $1.6 billion stock-for-stock transaction, would create a $39 billion banking behemoth.