TowneBank Announces Completion of Dogwood State Bank Merger
Rhea-AI Summary
TowneBank (NASDAQ: TOWN) announced completion of its merger with Raleigh-based Dogwood State Bank, effective January 12, 2026. The transaction expands TowneBank’s footprint along the I-85 corridor and into key North Carolina markets (Raleigh, Charlotte, Greensboro-Winston Salem, Greenville), Eastern North Carolina coast (Outer Banks, Morehead City, Wilmington, Fayetteville), Charleston, SC, and Elizabethton, TN. Dogwood branches will operate as “Dogwood State Bank, a Division of TowneBank” until a core systems conversion in November 2026. Steven W. Jones joins as President of the Carolinas and, with George Perkins, was appointed to TowneBank’s board effective January 12, 2026.
Positive
- Merger effective Jan 12, 2026 expands Southeast footprint
- Adds presence in Raleigh, Charlotte, Greenville, Charleston, and coastal NC
- Dogwood SBA lending team added to enhance small business lending
- Steven W. Jones appointed President of the Carolinas and board member
Negative
- Dogwood core systems conversion scheduled for Nov 2026 (integration risk)
- Expanded multi-state footprint increases operational and compliance scope
News Market Reaction – TOWN
In the Jan 12 session, TOWN declined 1.24%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Dec 10 | Merger approval | Positive | +2.5% | Dogwood shareholders approved merger, clearing a key closing condition. |
| Nov 26 | Dividend declaration | Positive | -0.4% | Quarterly cash dividend of $0.27 per share announced for early 2026. |
| Oct 22 | Earnings release | Positive | -2.4% | Q3 2025 earnings showed higher revenue, deposits, loans, and recent acquisitions. |
| Sep 02 | Merger completion | Positive | -0.7% | Completed Old Point merger, expanding Hampton Roads presence and leadership team. |
| Aug 27 | Dividend declaration | Positive | -0.1% | Declared $0.27 Q3 dividend with usual Board and regulatory conditions. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent news, including acquisitions, dividends, and earnings, has more often seen negative or muted price reactions, with only one of the last five events showing a positive alignment.
Over the past months, TowneBank reported strong Q3 2025 growth with higher revenue, deposits, and loans, while absorbing Old Point and Village acquisitions. It maintained a recurring $0.27 quarterly dividend through August and November 2025. Acquisition-related headlines have focused on expanding presence in Hampton Roads and the Carolinas, including Old Point and Dogwood. Despite operational growth and strategic M&A, several prior announcements coincided with short-term share price declines.
Key Terms
merger regulatory
sba lending financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
SUFFOLK, Va., Jan. 12, 2026 (GLOBE NEWSWIRE) -- Hampton Roads-based TowneBank (NASDAQ: TOWN) announced today the completion of its merger with Raleigh-based Dogwood State Bank (“Dogwood”). The merger substantially enhances TowneBank’s strategic journey down the fast-growing Interstate 85 corridor from Richmond, Virginia, and into Greenville and the upstate region of South Carolina. The merger also strengthens TowneBank’s position in key North Carolina markets, including Raleigh, Charlotte, Greensboro-Winston Salem, and Greenville. In addition, the merger expands the bank’s footprint along the Eastern North Carolina coast from the Outer Banks to include Morehead City, Wilmington, and Fayetteville, together with a new location in historic Charleston, South Carolina. A location in Elizabethton, Tennessee, a city near the Tri-Cities area of Johnson City, Kingsport, and Bristol, rounds out the expansion. The merger was announced on August 19, 2025, and received overwhelming support at the special meeting of Dogwood shareholders held in December 2025.
Following the merger, which was effective on January 12, 2026, Dogwood locations will operate as “Dogwood State Bank, a Division of TowneBank” until November 2026, when the core systems and operations of Dogwood are scheduled to be converted into those of TowneBank.
Steven W. Jones, the former chief executive officer of Dogwood, will continue in a key leadership role with the combined company and join TowneBank as President of the Carolinas, serving as a member of the TowneBank Corporate Management Group. Mr. Jones and George (Robin) Perkins, a former director of Dogwood, were appointed to the TowneBank Board of Directors, effective January 12, 2026.
“We are honored to welcome Steve and his talented teammates to our Towne family. Their efforts to build Dogwood into an excellent, high-performing bank are truly impressive,” said TowneBank executive chairman G. Robert Aston, Jr. “We look forward to working with them to take our Main Street Bank forward in our existing and new fast-growing markets in North and South Carolina.”
“Dogwood has highly respected bankers with deep expertise,” said TowneBank president and chief executive officer William I. Foster III. “We are excited to add Dogwood’s seasoned SBA lending team that will significantly enhance our small business lending capabilities throughout our footprint and in other select markets.”
Jones added, ”When it came to forming a partnership to continue the legacy of Dogwood, 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 a company built on relationships, offering a full range of banking and other financial services, with a focus on serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.
Today, TowneBank operates over 70 banking offices throughout Hampton Roads and Central Virginia, Eastern and Central North Carolina, the Greenville and upstate region of South Carolina, and Charleston, South Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its affiliated companies that include Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices RW Towne Realty, Towne 1031 Exchange, LLC, Towne Vacations, and Towne Trust Company, N.A. With the addition of Dogwood, TowneBank will have total pro forma assets of approximately
For more information, contact:
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
