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TowneBank Announces Completion of Dogwood State Bank Merger

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SUFFOLK, Va., Jan. 12, 2026 (GLOBE NEWSWIRE) -- Hampton Roads-based TowneBank (NASDAQ: TOWN) announc...

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AI Summary

TowneBank completed its merger with Dogwood State Bank today. Merger enhances TowneBank's reach into North and South Carolina markets. New assets reach approximately $22 billion, positioning TowneBank among Virginia's largest. Experienced teams from Dogwood will bolster TowneBank's SBA lending capabilities. Leadership changes include Dogwood's CEO joining TowneBank's management team.

Sentiment Rationale

The merger significantly expands TowneBank’s market presence and operational capabilities, similar to past successful mergers in the banking sector that led to increased market valuation and stock performance.

Trading Thesis

Market expansion through the merger is likely to yield long-term growth outcomes, as seen in other banks like Regions Financial after their strategic acquisitions.

Market-Moving

  • TowneBank completed its merger with Dogwood State Bank today.
  • Merger enhances TowneBank's reach into North and South Carolina markets.
  • New assets reach approximately $22 billion, positioning TowneBank among Virginia's largest.

Key Facts

  • TowneBank completed its merger with Dogwood State Bank today.
  • Merger enhances TowneBank's reach into North and South Carolina markets.
  • New assets reach approximately $22 billion, positioning TowneBank among Virginia's largest.
  • Experienced teams from Dogwood will bolster TowneBank's SBA lending capabilities.
  • Leadership changes include Dogwood's CEO joining TowneBank's management team.

Companies Mentioned

  • REGN (REGN)
  • SBNY (SBNY)

Corporate Developments

The merger enhances TowneBank's competitive edge, impacting investor perception positively and likely influencing stock performance.

TowneBank Completes Strategic Merger with Dogwood State Bank

SUFFOLK, Va., Jan. 12, 2026 (GLOBE NEWSWIRE) – TowneBank (NASDAQ: TOWN), based in Hampton Roads, has formally completed its merger with Dogwood State Bank, which is headquartered in Raleigh. This merger marks a significant step in TowneBank's expansion strategy, particularly along the Interstate 85 corridor, enhancing its presence from Richmond, Virginia, through Greenville, and into the upstate region of South Carolina.

Expanded Market Presence

The merger not only positions TowneBank to strengthen its foothold in important North Carolina markets such as Raleigh, Charlotte, Greensboro-Winston Salem, and Greenville, but also broadens its geographical reach along the Eastern North Carolina coast. This includes notable locations such as Morehead City, Wilmington, and Fayetteville, in addition to a new branch in historic Charleston, South Carolina. Furthermore, a new location has been established in Elizabethton, Tennessee, near the Tri-Cities area encompassing Johnson City, Kingsport, and Bristol.

Merger Approval and Future Operations

Originally announced on August 19, 2025, the merger received strong backing during a special meeting of Dogwood shareholders in December 2025. Following its official launch on January 12, 2026, Dogwood locations will transition to operate as “Dogwood State Bank, a Division of TowneBank.” This arrangement is set to continue until November 2026, when the core systems and operations of Dogwood will be fully integrated with TowneBank.

Leadership and Strategic Vision

Steven W. Jones, the former CEO of Dogwood, will assume a critical role post-merger as President of the Carolinas, contributing to the TowneBank Corporate Management Group. Both Mr. Jones and George (Robin) Perkins, a former Dogwood director, will join TowneBank's Board of Directors, effective January 12, 2026.

G. Robert Aston, Jr., Executive Chairman of TowneBank, expressed enthusiasm about the merger: “We are honored to welcome Steve and his talented teammates to our Towne family. Their efforts to build Dogwood into a high-performing bank are truly impressive.” He added that the merger sets the stage for growth in both existing and new markets in North and South Carolina.

Enhancing Small Business Lending

William I. Foster III, President and CEO of TowneBank, noted that “Dogwood has highly respected bankers with deep expertise.” He emphasized that the addition of Dogwood’s seasoned SBA lending team will significantly boost TowneBank’s small business lending capabilities across its operational footprint and in select markets.

Jones remarked on the partnership, stating, “TowneBank demonstrated values that naturally aligned with ours. We are excited to combine our resources into one dedicated financial institution that celebrates the power of local banking.”

About TowneBank

Founded in 1999, TowneBank is built on a foundation of relationships, offering a broad spectrum of banking and financial services while focusing on enriching the lives of others. The bank prides itself on cultivating a culture of caring, respecting the diverse talents, perspectives, and experiences of its employees and members.

Currently, TowneBank operates more than 70 banking offices across various regions, including Hampton Roads, Central Virginia, Eastern and Central North Carolina, and the upstate region of South Carolina, along with Charleston, South Carolina. This merger will result in pro forma assets of approximately $22 billion as of September 30, 2025, establishing TowneBank as one of the largest banks headquartered in Virginia.

Contact Information

  • G. Robert Aston, Jr., Executive Chairman: 757-638-6780
  • William I. Foster III, Chief Executive Officer: 757-417-6482
  • Investor Contact - William B. Littreal, Chief Financial Officer: 757-638-6813

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