TowneBank to purchase Dogwood State Bank at $25.04 per share
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 19 2025
0mins
Merger Announcement: TowneBank has signed a definitive merger agreement to acquire Dogwood State Bank, enhancing its strategic position in the banking sector.
Combined Assets: Post-acquisition, TowneBank will have total assets of approximately $22 billion, with loans around $16 billion and deposits near $19 billion.
Earnings Impact: The acquisition is expected to be approximately 8.0% accretive to TowneBank's earnings per share by 2027, including fully phased-in cost savings.
Shareholder Terms: Dogwood shareholders will receive 0.700 shares of TowneBank common stock for each share they own, valuing the deal at about $476.2 million based on recent stock prices.
Get Free Real-Time Notifications for Any Stock
Monitor tickers like TOWN with instant alerts to capture every critical market movement.
Sign up for free to build your custom watchlist and receive professional-grade stock notifications.
Analyst Views on TOWN
Wall Street analysts forecast TOWN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TOWN is 40.00 USD with a low forecast of 38.00 USD and a high forecast of 42.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 36.040
Low
38.00
Averages
40.00
High
42.00
Current: 36.040
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 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.
Continue Reading
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.
Continue Reading