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Hampton Roads-based TowneBank (NASDAQ: TOWN) and Village Bank and Trust Financial Corp. (NASDAQCM: VBFC), the parent company of Village Bank, announced in a press release, the signing of a definitive agreement and plan of reorganization under which TowneBank will acquire Village Bank. The transaction aims to enhance TowneBank’s presence in the Richmond MSA and provide opportunities for revenue synergies with Towne Financial Services Group.

“Our TowneBank family is humbled and excited to partner with Village Bank and its team members,” said G. Robert Aston Jr., executive chairman of TowneBank. “We believe our partnership can bring additional products and services to Village Bank’s clients while enhancing our Richmond presence, which is core to our growth.”

Jay Hendricks, president and CEO of Village, added, “This merger is a strategic move to enhance the value we deliver to our customers. It will allow us to meet our customers’ needs with greater resources and products and provide increased opportunities for our employees.”

As of June 30, 2024, the combined companies will have $17.8 billion in assets, $12.1 billion in loans, and $14.9 billion in deposits. According to the press release, shareholders of Village will receive $80.25 per share in cash, representing a transaction value of about $120 million. The deal is expected to close in the first half of 2025, pending regulatory and shareholder approval.

TowneBank, founded in 1999, has over 50 offices in Virginia and North Carolina. Village Bank, headquartered in Midlothian, Virginia, operates nine branch offices in the Richmond and Williamsburg areas.