The Village Bank deal will mark TowneBank’s second acquisition of a Richmond-area bank since it entered the market in 2015. (BizSense file images)
TowneBank is grabbing a bigger piece of the Richmond market.
The $17 billion Hampton Roads-based bank announced this morning a deal to acquire Midlothian-based competitor Village Bank.
The move would give Towne an extra nine branches in the Richmond region to go along with its nine existing local locations, as well as taking on Village’s $747 million in assets.
Village has nine branches in the Richmond market.
The cash-for-stock deal calls for Village shareholders to receive $80.25 for each share of Village stock they own. That pegs the value of the deal at approximately $120 million.
That per-share price is a significant premium on Village’s stock, and news of the deal sent its share price skyrocketing this morning to well over $70 per share, up more than 40% from Monday.
The deal has already been given the blessing by the boards of directors of both banks. It still needs approval from Village shareholders, as well as regulators. It’s expected to close in the first half of 2025.
Piper Sandler & Co. served as Towne’s financial advisor in the deal and Troutman Pepper is its legal counsel. Janney Montgomery Scott is Village’s financial advisor and Williams Mullen is its legal counsel.
The deal would mark 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.
This is a breaking news alert. Stay tuned to BizSense for more details.