Hampton Roads based TowneBank (NASDAQ: TOWN) is moving to increase its reach in the fast-growing markets of North and South Carolina by agreeing to acquire Raleigh based Dogwood State Bank (OTCQX: DSBX). This deal marks a key step in TowneBank’s expansion along the Interstate 85 corridor from Richmond Virginia to Greenville and the upstate region of South Carolina.
The acquisition will significantly expand TowneBank’s presence in major North Carolina cities such as Raleigh, Greensboro Winston-Salem, Greenville, and Charlotte. It will additionally broaden the bank’s footprint along the Eastern North Carolina coast from the Outer Banks to locations including Morehead City, Greenville, Fayetteville, and Wilmington. The merger also introduces a fresh location in Charleston, South Carolina, a city known for its beauty and history. These are some of the Southeast’s most dynamic and rapidly growing regions.
TowneBank is simultaneously preparing to complete its purchase of Old Point Financial Corporation, expected around September 1, 2025. After both deals close, the combined company would have approximately $22 billion in assets, $16 billion in loans, and $19 billion in deposits. TowneBank anticipates the acquisition of Dogwood will increase earnings per share by about 8.0% by 2027, reflecting the expected full benefits from cost savings based on generally accepted accounting principles.
Under the terms agreed upon, Dogwood shareholders will receive 0.7 shares of TowneBank stock for every Dogwood share they own. Based on TowneBank’s 15-day average stock price of $35.77 as of August 18, 2025, the deal values Dogwood at around $476.2 million.
Leadership continuity is a priority in this deal. Steve Jones, Dogwood’s CEO, will take on a senior leadership role with TowneBank as President of its North Carolina and South Carolina operations, and will join TowneBank’s corporate management team. TowneBank’s Executive Chairman, G. Robert Aston Jr., expressed enthusiasm about this, noting a long-standing respect for Jones and his team’s efforts in building Dogwood State Bank.
In addition to Jones, Robin Perkins, a current Dogwood director and CEO of Spinners Capital, will join TowneBank’s corporate board of directors when the merger completes. This leadership blend reflects TowneBank’s focus on strong local leadership in expanding markets.
Steve Jones described the merger as an exciting new chapter for Dogwood. He emphasized the alignment in vision and values between the two banks and expressed confidence that the union would create fresh opportunities for customers, employees, and shareholders while building on Dogwood’s legacy.
The boards of directors of both banks have approved the transaction following detailed due diligence. Regulatory approval and Dogwood shareholder consent remain as customary conditions before the deal is finalized, which is anticipated to happen in early 2026.Â
Established in 1999, TowneBank has grown to become one of Virginia’s largest banks headquartered locally. As of June 30, 2025, it had assets totaling 18.26 billion dollars. TowneBank operates more than 55 banking offices in Hampton Roads, Central Virginia, and parts of North Carolina. Known for personalized banking with local decision-making authority, TowneBank also offers wealth management, insurance, mortgage, real estate, and other financial services through a group of affiliated companies.
Dogwood State Bank, headquartered in Raleigh, had $2.4 billion in assets as of June 30, 2025. It operates 17 branches in North Carolina, South Carolina, and Eastern Tennessee. Dogwood specializes in small business lending and is intent on redefining community banking with a focus on leadership, technology investment, and superior customer service aimed at businesses, professionals, and their employees.
With this acquisition, TowneBank is aiming to build greater scale and extend its service capabilities in one of the Southeast’s strongest economic corridors. The deal provides greater resources and reach while maintaining the community banking approach that both institutions value.
This move reflects ongoing consolidation in the banking industry where regional banks seek strategic growth opportunities. TowneBank’s latest merger highlights a commitment to expanding carefully in markets showing strong economic growth while maintaining close connections to local customers. The merger is expected to complete in early 2026, pending regulatory and shareholder approvals, ushering in a new phase of community banking across Virginia and the Carolinas.
