TowneBank has agreed to acquire Dogwood State Bank, a North Carolina-based state-chartered community bank, in a deal worth around $476.2m.
The acquisition aims to bolster TowneBank’s presence along the growing Interstate 85 corridor and expand its reach in North Carolina and South Carolina.
Listed on Nasdaq, TowneBank is headquartered in Hampton Roads, North Carolina.
The acquisition will enhance its market positions in areas including Raleigh, Greensboro-Winston Salem, Greenville, and Charlotte, North Carolina. It will also extend its footprint along the Eastern North Carolina coast to cities such as Morehead City and Wilmington.
Additionally, it will establish a new location in Charleston, South Carolina.
TowneBank is also pursuing the acquisition of Old Point Financial, which is expected to close shortly.
Following the closing of the two deals, the enlarged TowneBank is expected to manage approximately $22bn in total assets, $16bn in loans, and $19bn in deposits.
Under the merger terms, Dogwood State Bank’s shareholders will exchange each of their shares for 0.7 shares of TowneBank. Dogwood State Bank currently trades on OTCQX.
Steve Jones, CEO of Dogwood State Bank, will assume a key leadership role in the merged company as president of TowneBank’s North Carolina and South Carolina operations.
Both companies have conducted thorough due diligence and received board approvals for the transaction, which is expected to conclude in early 2026 subject to regulatory and shareholder approvals.
Jones said: “After thoughtful consideration, we have agreed to join forces with TowneBank, whose vision and values align closely with our own. This partnership will bring new opportunities for our customers, employees, and shareholders, while building to the legacy we’ve created at Dogwood.”
Raymond James & Associates advised TowneBank financially, while Wachtell, Lipton, Rosen & Katz provided legal counsel. Piper Sandler & Co. served as financial advisor to Dogwood State Bank with Williams Mullen as legal counsel.
TowneBank executive chairman G Robert Aston, Jr. said: “We are excited to have Steve and his talented teammates join hands and hearts with our Towne family to take our Main Street Bank forward in the fast-growing North Carolina and South Carolina markets.”
Meanwhile, TowneBank has also received regulatory approval for its $203m acquisition of Old Point Financial, which was announced in April 2025. This transaction is expected to close by on or around 1 September 2025.
