M&A News: TowneBank expands in Virginia

By Paul Davis

TowneBank in Suffolk, Virginia, has agreed to buy Farmers Bankshares in Windsor, Virginia. The $16.9 billion-asset TowneBank said in a press release Thursday that it will pay $56 million in stock for the $609 million-asset Farmers. The deal, which is expected to close in the first quarter, priced Farmers at 196% of its tangible book value. TowneBank will enter Isle of Wight and Southampton counties when the deal is completed. Farmers has eight branches, $277 million of loans and $521 million of deposits.

Meanwhile, Highland Bank in St. Paul, Minnesota, has agreed to buy Boundary Waters Bank in Ely, Minnesota. The $630 million-asset Highland said in a press release that it expects to buy the $115 million-asset Boundary Waters by the end of this year.

© 2022 by Paul Davis. All rights reserved. Reprinted with permission as an adaptation of the material from bank-slate.blogspot.com.


About Author