News Summary
TowneBank has announced its acquisition of Dogwood State Bank for $476 million, marking a significant expansion in North Carolina’s banking landscape. The deal, subject to regulatory approvals, will enhance TowneBank’s service capabilities and consolidate its assets to approximately $22 billion. Dogwood’s CEO will remain in a leadership role, ensuring a smooth transition as the two banks merge. The acquisition reflects a growing trend of consolidation in the U.S. banking industry, where the number of state-chartered banks in North Carolina has sharply declined.
North Carolina is set to see a notable shift in its banking landscape as TowneBank, based in Suffolk, Virginia, has announced its acquisition of Dogwood State Bank for approximately $476 million. This deal represents a significant expansion for TowneBank, which aims to increase its offerings and footprint across the Carolinas.
The acquisition was jointly announced by both financial institutions on Tuesday. Dogwood State Bank currently operates 17 branches in North Carolina, South Carolina, and Tennessee, with key locations in Fayetteville, Charlotte, and Sanford, in addition to its headquarters in North Raleigh. With the acquisition, TowneBank aims to leverage Dogwood’s established presence to enhance its own service capabilities in the fast-growing Interstate 85 corridor.
Since its recapitalization in 2019, Dogwood State Bank has experienced remarkable growth, increasing its assets from $350 million to nearly $2.4 billion, a remarkable six-fold increase. This growth has been spurred by opportunities that arose from the restructuring of larger banking institutions, coupled with a surge in small business loans facilitated by the federal Paycheck Protection Program.
Under the terms of the merger, Dogwood investors will receive 0.7 shares of TowneBank stock for each share of Dogwood stock they own. Following the announcement, Dogwood’s stock price surged by 53%, reaching $23.60 per share, indicating a positive reception on the market. The merger is subject to regulatory and shareholder approvals, with an anticipated completion date in early 2026.
Steve Jones, CEO of Dogwood, will continue in a leadership capacity, serving as president of TowneBank’s banking operations in the Carolinas. This continuity aims to maintain stability and a seamless transition for both employees and clients as the two institutions merge.
TowneBank is already a significant player in the financial sector, boasting total assets exceeding $18 billion. The acquisition is expected to bolster TowneBank’s earnings per share by approximately 8% by 2027, driven by anticipated cost savings from the consolidation. Once completed, the merger will elevate TowneBank’s total assets to about $22 billion.
The merging of TowneBank and Dogwood State Bank reflects a broader trend of consolidation within the U.S. banking industry. From 88 state-chartered banks in North Carolina in 2005, the number has dwindled to 33 today, highlighting the changing landscape and increasing focus on efficiency and scale in the banking sector.
In terms of ownership, Dogwood’s major shareholders include FJ Capital Management with a 10.7% stake, and Patriot Financial Partners holding 5.4%. Financial advisory services for both banks in the transaction are provided by Raymond James & Associates, Inc. for TowneBank and Piper Sandler & Co. for Dogwood.
As this merger unfolds, clients and stakeholders from both banks are expected to benefit from the enhanced service offerings and broader resources available through the combined entity, creating a more robust banking institution in the Carolinas.
Deeper Dive: News & Info About This Topic
- Business NC: TowneBank Buying Raleigh’s Dogwood for $476M
- GlobeNewswire: TowneBank Expands Carolinas Presence Through Agreement to Acquire Dogwood State Bank
- Wilmington Biz: Dogwood State Bank, TowneBank Merger to Lead to Combined $22B Company
- Greenville Business Magazine: Dogwood State Bank to Acquire Community First Bancorporation
- Wikipedia: Banking in the United States
Author: STAFF HERE FLORENCE WRITER
FLORENCE STAFF WRITER The FLORENCE STAFF WRITER represents the experienced team at HEREFlorence.com, your go-to source for actionable local news and information in Florence, Florence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Florence Festival of Lights, Pee Dee Pride, and agricultural expos at the Florence Center. Our coverage extends to key organizations like the Florence Regional Chamber of Commerce and the Pee Dee Area Council of Governments, plus leading businesses in healthcare and retail that power the local economy such as McLeod Health and Pee Dee Electric Cooperative. As part of the broader HERE network, including HERECharleston.com, HEREColumbia.com, HEREGreenville.com, and HEREHiltonHead.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
