TowneBank Acquires Dogwood for $476.2 Million to Strengthen Its Footprint in the Carolinas
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 20 2025
0mins
Source: NASDAQ.COM
TowneBank Acquisition: TowneBank has agreed to acquire Dogwood State Bank for $476.2 million, with the transaction expected to close in early 2026 pending regulatory and shareholder approvals.
Leadership Transition: Steve Jones, CEO of Dogwood, will join TowneBank as president of its North Carolina and South Carolina operations, continuing his leadership role in the combined company.
Financial Impact: The acquisition is projected to incur one-time merger costs of $45 million, with anticipated cost savings of 35% on non-interest expenses, and an 8% increase in earnings per share by 2027.
Market Positioning: This deal aims to strengthen TowneBank's position as a leading regional bank in the Southeast, while First Financial Bancorp is also expanding through its acquisition of BankFinancial Corporation.
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Analyst Views on TOWN
Wall Street analysts forecast TOWN stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 35.960
Low
38.00
Averages
40.00
High
42.00
Current: 35.960
Low
38.00
Averages
40.00
High
42.00
No data
About TOWN
TowneBank offers a full range of banking and other financial services through its controlled divisions and subsidiaries. The Company's financial services include banking, resort property management, mortgage, insurance, employee benefit services, and investments. Its segments include Banking, Realty, and Insurance. The banking segment provides loan and deposit services to retail and commercial customers and also provides a variety of investment and asset management services. The Realty segment offers mortgage loans and resort property management. The Insurance segment provides a full line of commercial and consumer insurance products and financial services, as well as employee benefit services. Its business banking services include business lending, business checking and online banking and treasury services. The Company operates over 50 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TowneBank Reports Q4 Earnings with EPS of $0.70
- Earnings Per Share: TowneBank reported a GAAP EPS of $0.70 for Q4, demonstrating resilience in profitability despite market fluctuations, which reflects its strong position in the competitive banking sector.
- Revenue Growth: The bank achieved revenues of $219.94 million in Q4, indicating growth compared to the previous year, showcasing its ongoing expansion in lending and deposit services that strengthens its market position.
- Acquisition Strategy Risks: TowneBank's accelerated pace of acquisitions presents growth opportunities but also increases integration risks and potential financial pressures, necessitating careful management to ensure long-term sustainability.
- Investor Focus: Following the earnings report, market expectations for TowneBank's future performance are high, with analyst ratings and historical financial data serving as critical references for investor decision-making.
See More
TowneBank Reports Record Core Earnings for 2025
- Core Earnings Surge: TowneBank's core earnings reached $3.02 per share in 2025, up 39.2% from $2.17 in 2024, reflecting significant profitability improvements post-merger, thereby enhancing competitive positioning in the market.
- Revenue Growth: Total revenues for 2025 were $835.72 million, a 20.6% increase from $693.29 million in 2024, primarily driven by increases in loan volume and noninterest income, indicating successful market share expansion.
- Loan and Deposit Growth: As of December 31, 2025, total loans reached $13.34 billion, a 16.38% increase from 2024, while total deposits stood at $16.51 billion, up 14.35%, reflecting strong performance in customer base and liquidity management.
- Improved Net Interest Margin: The net interest margin for 2025 was 3.40%, significantly up from 2.87% in 2024, indicating effective asset-liability management in a changing interest rate environment, thereby enhancing profitability.
See More
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- Merger Approval: Shareholders of Dogwood State Bank approved the merger with TowneBank during a special meeting on December 3, 2025, marking a significant step towards integration, with expectations to close in early Q1 2026.
- Asset Scale: Headquartered in Raleigh, North Carolina, Dogwood State Bank has approximately $2.4 billion in total assets and offers a diverse range of banking products and services, focusing on small business lending, which enhances its competitive position in the market.
- Strategic Goals: Post-merger, Dogwood aims to collaborate with TowneBank to drive business growth, intending to provide superior local banking services to commercial clients and professionals, thereby solidifying its market presence.
- Regulatory Approvals: The completion of the merger is contingent upon satisfying customary closing conditions, including obtaining all necessary regulatory approvals, which may impact the timeline and expected benefits of the merger.
See More
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- Merger Approval: Dogwood State Bank shareholders approved the merger with TowneBank during a special meeting on December 3, 2025, marking a significant milestone with an expected closing in early Q1 2026.
- Asset Scale: With approximately $2.4 billion in total assets, Dogwood focuses on providing lending services to small businesses, and the merger is anticipated to enhance its competitive position in the market.
- Business Integration: The merger will require customary regulatory approvals, which may affect the timeline and costs associated with the integration of Dogwood and TowneBank's operations.
- Future Outlook: Post-merger, Dogwood plans to leverage combined resources and services to further attract business clients, aiming to drive long-term growth opportunities in the community banking sector.
See More
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- Dividend Declaration: TowneBank's Board of Directors has declared a cash dividend of $0.27 per share for Q4 2025, payable on January 7, 2026, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Record Date for Shareholders: The record date for this dividend payment is December 26, 2025, ensuring that eligible shareholders can receive their earnings promptly, which further boosts investor confidence.
- Asset Scale: As of September 30, 2025, TowneBank reported total assets of $19.68 billion, solidifying its position as one of the largest banks headquartered in Virginia, indicative of its robust financial foundation.
- Business Diversification: TowneBank not only offers traditional banking services but also provides diversified financial services through its affiliates, including wealth management, insurance, and mortgage services, enhancing its market competitiveness and customer loyalty.
See More
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- Dividend Announcement: TowneBank has declared a cash dividend of $0.27 per share for Q4 2025, payable on January 7, 2026, reflecting the company's ongoing commitment to stable profitability, although future dividends remain subject to Board and regulatory approval.
- Shareholder Return Strategy: This dividend will benefit shareholders of record as of December 26, 2025, demonstrating TowneBank's focus on shareholder returns, aimed at boosting investor confidence and attracting further investment.
- Asset Growth: As of September 30, 2025, TowneBank's total assets reached $19.68 billion, making it one of the largest banks headquartered in Virginia, showcasing its strong competitive position and robust financial foundation in the market.
- Business Diversification: Beyond traditional banking services, TowneBank enhances its market position and customer loyalty by offering a diverse range of financial services through its affiliates, including wealth management, insurance, and mortgage services.
See More
TowneBank Reports Q4 Earnings with EPS of $0.70
- Earnings Per Share: TowneBank reported a GAAP EPS of $0.70 for Q4, demonstrating resilience in profitability despite market fluctuations, which reflects its strong position in the competitive banking sector.
- Revenue Growth: The bank achieved revenues of $219.94 million in Q4, indicating growth compared to the previous year, showcasing its ongoing expansion in lending and deposit services that strengthens its market position.
- Acquisition Strategy Risks: TowneBank's accelerated pace of acquisitions presents growth opportunities but also increases integration risks and potential financial pressures, necessitating careful management to ensure long-term sustainability.
- Investor Focus: Following the earnings report, market expectations for TowneBank's future performance are high, with analyst ratings and historical financial data serving as critical references for investor decision-making.
See More
TowneBank Reports Record Core Earnings for 2025
- Core Earnings Surge: TowneBank's core earnings reached $3.02 per share in 2025, up 39.2% from $2.17 in 2024, reflecting significant profitability improvements post-merger, thereby enhancing competitive positioning in the market.
- Revenue Growth: Total revenues for 2025 were $835.72 million, a 20.6% increase from $693.29 million in 2024, primarily driven by increases in loan volume and noninterest income, indicating successful market share expansion.
- Loan and Deposit Growth: As of December 31, 2025, total loans reached $13.34 billion, a 16.38% increase from 2024, while total deposits stood at $16.51 billion, up 14.35%, reflecting strong performance in customer base and liquidity management.
- Improved Net Interest Margin: The net interest margin for 2025 was 3.40%, significantly up from 2.87% in 2024, indicating effective asset-liability management in a changing interest rate environment, thereby enhancing profitability.
See More
Dogwood State Bank Shareholders Approve Merger with TowneBank
- Merger Approval: Shareholders of Dogwood State Bank approved the merger with TowneBank during a special meeting on December 3, 2025, marking a significant step towards integration, with expectations to close in early Q1 2026.
- Asset Scale: Headquartered in Raleigh, North Carolina, Dogwood State Bank has approximately $2.4 billion in total assets and offers a diverse range of banking products and services, focusing on small business lending, which enhances its competitive position in the market.
- Strategic Goals: Post-merger, Dogwood aims to collaborate with TowneBank to drive business growth, intending to provide superior local banking services to commercial clients and professionals, thereby solidifying its market presence.
- Regulatory Approvals: The completion of the merger is contingent upon satisfying customary closing conditions, including obtaining all necessary regulatory approvals, which may impact the timeline and expected benefits of the merger.
See More
Dogwood State Bank Shareholders Approve Merger with TowneBank
- Merger Approval: Dogwood State Bank shareholders approved the merger with TowneBank during a special meeting on December 3, 2025, marking a significant milestone with an expected closing in early Q1 2026.
- Asset Scale: With approximately $2.4 billion in total assets, Dogwood focuses on providing lending services to small businesses, and the merger is anticipated to enhance its competitive position in the market.
- Business Integration: The merger will require customary regulatory approvals, which may affect the timeline and costs associated with the integration of Dogwood and TowneBank's operations.
- Future Outlook: Post-merger, Dogwood plans to leverage combined resources and services to further attract business clients, aiming to drive long-term growth opportunities in the community banking sector.
See More
TowneBank Declares $0.27 Cash Dividend Per Share for Q4 2025
- Dividend Declaration: TowneBank's Board of Directors has declared a cash dividend of $0.27 per share for Q4 2025, payable on January 7, 2026, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Record Date for Shareholders: The record date for this dividend payment is December 26, 2025, ensuring that eligible shareholders can receive their earnings promptly, which further boosts investor confidence.
- Asset Scale: As of September 30, 2025, TowneBank reported total assets of $19.68 billion, solidifying its position as one of the largest banks headquartered in Virginia, indicative of its robust financial foundation.
- Business Diversification: TowneBank not only offers traditional banking services but also provides diversified financial services through its affiliates, including wealth management, insurance, and mortgage services, enhancing its market competitiveness and customer loyalty.
See More
TowneBank Declares $0.27 Cash Dividend Per Share for Q4 2025
- Dividend Announcement: TowneBank has declared a cash dividend of $0.27 per share for Q4 2025, payable on January 7, 2026, reflecting the company's ongoing commitment to stable profitability, although future dividends remain subject to Board and regulatory approval.
- Shareholder Return Strategy: This dividend will benefit shareholders of record as of December 26, 2025, demonstrating TowneBank's focus on shareholder returns, aimed at boosting investor confidence and attracting further investment.
- Asset Growth: As of September 30, 2025, TowneBank's total assets reached $19.68 billion, making it one of the largest banks headquartered in Virginia, showcasing its strong competitive position and robust financial foundation in the market.
- Business Diversification: Beyond traditional banking services, TowneBank enhances its market position and customer loyalty by offering a diverse range of financial services through its affiliates, including wealth management, insurance, and mortgage services.
See More
