TowneBank announced this week that it has entered into a merger agreement with Farmers Bankshares, Inc, the parent company of Farmers Bank based out of Windsor, VA.
The two entities signed an agreement on Thursday, August 18, which will fold Farmers into TowneBank and solidifies TowneBank’s number one market share in the Hampton Roads region. The deal also adds Isle of Wight and Southampton counties to TowneBank’s service area.
TowneBank, founded in 1999, has more than 40 branches throughout Hampton Roads and central Virginia as well as northeastern and central North Carolina.
“Our TowneBank family is humbled and excited to join hands with our long-time friends at Farmers,” said G. Robert Aston, Jr., executive chairman of TowneBank, in a release. “We believe our partnership can bring additional products and expanded services to the clients of Farmers Bank while helping our communities grow and prosper.”
Added Farmers Bank CEO Vernon Towler: “We feel privileged to partner with our neighbors at TowneBank. They share with Farmers Bank a commitment to philanthropy and community engagement. TowneBank is an incredibly strong organization.”
Based on figures reported on June 30 of this year, the combined companies would have total assets of $17.5 billion, loans of $10.9 billion, and deposits of $14.5 billion.
Under the terms of the merger agreement, shareholders of Farmers will receive 0.6050 shares of TowneBank common stock for each share of Farmers owned.
The merger, which was approved by the Boards of Directors of both banks, is expected to be finalized in the first quarter of 2023.