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.

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About Author

Contributing Editor Paul Davis, founder of Bank Slate and director of market intelligence at Strategic Resource Management, has more than 20 years of experience following the banking industry. Prior to joining SRM, an advisory firm in Memphis, Tennessee, he was editor for community banking and M&A at American Banker. He has held leadership positions at SNL Financial, where he was news editor and senior bank reporter, and American City Business Journals. Paul joined American Banker in 2005, covering large banks during the financial crisis and the post-crisis recovery. Paul has been featured as a speaker at the Federal Reserve, the ABA and FIS Global, and he has been regularly quoted by American Banker, S&P Global Market Intelligence and Bank Director. He has a bachelor’s degree from the University of Virginia and an MBA from Wake Forest University.