TowneBank in Virginia to buy Dogwood State in North Carolina

TowneBank in Suffolk, Va., has agreed to buy Dogwood State Bank in Raleigh, N.C.

The $18 billion-asset TowneBank said in a press release that it will pay $476.2 million in stock for the $2.4 billion-asset Dogwood. The deal is expected to close in early 2026.

TowneBank also has a pending deal for Old Point Financial in Hampton, Va., which should close on Sept. 1.

The acquisition of Dogwood is expected to be about 8% accretive to TowneBank’s 2027 earnings per share, when including cost savings.

Steve Jones, Dogwood’s CEO, will join TowneBank as president of its North Carolina and South Carolina banking operations. He will also join the TowneBank corporate management team. Robin Perkins, a Dogwood director, will join TowneBank’s board.

“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,” G. Robert Aston Jr., TowneBank’s chairman, said in the release.

Raymond James and Wachtell, Lipton, Rosen & Katz advised TowneBank. Piper Sandler and Williams Mullen advised Dogwood.