TowneBank to Acquire Village Bank for $120 Million in an All-Cash Deal

TowneBank (TOWN) entered into a merger agreement on September 24, 2024, to acquire Village Bank and Trust Financial Corp. (VBFC) for $120 million in cash.

Terms of the Agreement:

As per the merger agreement, shareholders of Village Bank will receive $80.25 per share in cash from TowneBank, representing a premium of 48.61% from the stock’s last close.

Company Overview:

Village Bank, headquartered in Midlothian, Virginia, provides banking services to small and medium-sized businesses, professionals, and individuals through nine branches in the greater Richmond area and Williamsburg. It offers various accounts, loans, and online banking services.

TowneBank, founded in 1999 and headquartered in Portsmouth, Virginia, offers a wide range of retail and commercial banking services, along with insurance and real estate solutions, across over 50 locations in Virginia and North Carolina.

Deal Details and Timeline:

The deal, expected to close in the first half of 2025, will expand TowneBank’s presence in the Richmond MSA.

Village Bank’s current Price/Book (TTM) ratio is 1.15, below the sector median of 1.26.

The two companies together would have total assets of $17.8 billion, loans amounting to $12.1 billion, and deposits totaling $14.9 billion.

Deal Metrics:

For a comprehensive look at this M&A transaction, please visit the Deal Metrics page here:

Deal Metrics for the acquisition of Village Bank and Trust Financial Corp. (VBFC) by TowneBank (TOWN)

The Deal Metrics page for each merger or acquisition includes:

• A history chart showing the spread of the merger from announcement to completion or failure.
• A timeline of events as the merger progresses through the HSR period, regulatory approvals, shareholder votes, etc.
• News updates and SEC filings.
• A record of deal updates.
• And much more.

Disclaimer: This article is for informational purposes only. Please conduct your own due diligence before making any investment decisions based on this information. We do not guarantee the accuracy or completeness of the data or content provided herein.

Editor’s Note: Baranjot Kaur contributed to this article