TOWN Towne Bank

Shareholders of Dogwood State Bank (OTCQX: DSBX) approved its merger into TowneBank (NASDAQ: TOWN) at a special meeting on December 3, 2025. The merger is expected to close early in the first quarter of 2026, pending regulatory approvals. Dogwood Bank, a Raleigh, N.C.-based community bank with $2.4 billion in assets, views this approval as a significant milestone.

KBRA has commented on TowneBank's (TOWN) merger agreement to acquire Dogwood State Bank, noting that the acquisition significantly enhances TowneBank's presence in North Carolina and South Carolina. The deal provides TowneBank with market leadership and scale due to Dogwood's 17 retail branches in attractive markets. KBRA expects TowneBank to rebuild its capital closer to historical levels with enhanced profitability trends stemming from the pending transactions, which also include the in-market acquisition of Old Point Financial Corporation.

TowneBank announced a definitive merger agreement to acquire Dogwood State Bank for approximately $476.2 million in a stock exchange. This strategic acquisition, combined with a pending merger with Old Point Financial Corporation, will create a financial entity with $22 billion in total assets, significantly expanding TowneBank's presence across the Carolinas. The merger is expected to be 8.0% accretive to TowneBank's 2027 earnings per share, with Dogwood's CEO continuing in a key leadership role.

TowneBank is acquiring Raleigh-based Dogwood State Bank for $476 million in stock. This acquisition will add 17 offices in eastern North Carolina and South Charlotte to TowneBank's operations, expanding its presence significantly. The transaction is expected to be accretive to TowneBank's earnings per share by about 8% in 2027 due to anticipated cost savings.

TowneBank reported a net income of $44.9 million in its third quarter, with earnings of 60 cents per share. The bank's revenue net of interest expense reached $172.9 million, surpassing Street forecasts.

TowneBank announced the appointment of Donald W. Comer Jr. as chairman of its Portsmouth/Suffolk board of directors. Additionally, the bank promoted Tracy J. Nelms to executive vice president, Bryan Steele to senior vice president, and Sara Twiford to assistant vice president at its Suffolk campus. All promoted individuals bring extensive experience and community involvement to their new roles.