News Summary
TowneBank has announced its acquisition of Dogwood State Bank for $476 million, marking a significant expansion in North Carolina’s banking landscape. The deal, subject to regulatory approvals, will enhance TowneBank’s service capabilities and consolidate its assets to approximately $22 billion. Dogwood’s CEO will remain in a leadership role, ensuring a smooth transition as the two banks merge. The acquisition reflects a growing trend of consolidation in the U.S. banking industry, where the number of state-chartered banks in North Carolina has sharply declined.
North Carolina is set to see a notable shift in its banking landscape as TowneBank, based in Suffolk, Virginia, has announced its acquisition of Dogwood State Bank for approximately $476 million. This deal represents a significant expansion for TowneBank, which aims to increase its offerings and footprint across the Carolinas.
The acquisition was jointly announced by both financial institutions on Tuesday. Dogwood State Bank currently operates 17 branches in North Carolina, South Carolina, and Tennessee, with key locations in Fayetteville, Charlotte, and Sanford, in addition to its headquarters in North Raleigh. With the acquisition, TowneBank aims to leverage Dogwood’s established presence to enhance its own service capabilities in the fast-growing Interstate 85 corridor.
Since its recapitalization in 2019, Dogwood State Bank has experienced remarkable growth, increasing its assets from $350 million to nearly $2.4 billion, a remarkable six-fold increase. This growth has been spurred by opportunities that arose from the restructuring of larger banking institutions, coupled with a surge in small business loans facilitated by the federal Paycheck Protection Program.
Under the terms of the merger, Dogwood investors will receive 0.7 shares of TowneBank stock for each share of Dogwood stock they own. Following the announcement, Dogwood’s stock price surged by 53%, reaching $23.60 per share, indicating a positive reception on the market. The merger is subject to regulatory and shareholder approvals, with an anticipated completion date in early 2026.
Steve Jones, CEO of Dogwood, will continue in a leadership capacity, serving as president of TowneBank’s banking operations in the Carolinas. This continuity aims to maintain stability and a seamless transition for both employees and clients as the two institutions merge.
TowneBank is already a significant player in the financial sector, boasting total assets exceeding $18 billion. The acquisition is expected to bolster TowneBank’s earnings per share by approximately 8% by 2027, driven by anticipated cost savings from the consolidation. Once completed, the merger will elevate TowneBank’s total assets to about $22 billion.
The merging of TowneBank and Dogwood State Bank reflects a broader trend of consolidation within the U.S. banking industry. From 88 state-chartered banks in North Carolina in 2005, the number has dwindled to 33 today, highlighting the changing landscape and increasing focus on efficiency and scale in the banking sector.
In terms of ownership, Dogwood’s major shareholders include FJ Capital Management with a 10.7% stake, and Patriot Financial Partners holding 5.4%. Financial advisory services for both banks in the transaction are provided by Raymond James & Associates, Inc. for TowneBank and Piper Sandler & Co. for Dogwood.
As this merger unfolds, clients and stakeholders from both banks are expected to benefit from the enhanced service offerings and broader resources available through the combined entity, creating a more robust banking institution in the Carolinas.
Deeper Dive: News & Info About This Topic
- Business NC: TowneBank Buying Raleigh’s Dogwood for $476M
- GlobeNewswire: TowneBank Expands Carolinas Presence Through Agreement to Acquire Dogwood State Bank
- Wilmington Biz: Dogwood State Bank, TowneBank Merger to Lead to Combined $22B Company
- Greenville Business Magazine: Dogwood State Bank to Acquire Community First Bancorporation
- Wikipedia: Banking in the United States
Author: STAFF HERE MYRTLE BEACH
The HERE Myrtle Beach Staff Writers are a collaborative team of journalists, editors, and local contributors passionate about delivering accurate, timely information to the Myrtle Beach community. As part of the HEREcity.com Network, which powers over 100 U.S. city sites including HEREcolumbia.com, our staff draws on collective experience in South Carolina journalism to cover everything from business sales and real estate developments to dining deals and community initiatives. Our Expertise and Background Local Roots in Myrtle Beach Our team includes lifelong Myrtle Beach residents and SC natives with deep knowledge of the area’s history, economy, and culture. We’ve covered key events like the recent developments along the Grand Strand, Myrtle Beach’s tourism and hospitality industry, and growth in local education sectors (e.g., Coastal Carolina University programs). Collective Experience With over 50 combined years in journalism, our staff has backgrounds in print, digital media, and community reporting. We prioritize fact-based stories, drawing from sources like the Myrtle Beach Area Chamber of Commerce, city government records, and on-the-ground interviews. Commitment to Quality Every article is a group effort, involving research, editing, and verification to ensure reliability. We adhere to journalistic standards, citing credible sources and updating content as new details emerge.
