The largest local bank in Hampton Roads is set to get bigger.
Suffolk-based TowneBank, the largest financial institution in the region by deposit market share, entered an agreement to merge with Farmers Bank, a Windsor-based bank with eight locations in Hampton Roads.
TowneBank Executive Chairman G. Robert Aston Jr. said bank leaders have wanted to establish a bigger footprint in Suffolk, Isle of Wight County and Southampton County, and Farmers has a good presence in those markets.
“It was really a logical situation for us when they decided that they would like to have a partner,” Aston said.
Farmers Bank dates to 1919, when the community bank was founded to serve farmers, businesses and citizens in Isle of Wight County. Aston said his grandfather was a farmer in Isle of Wight County many years ago.
For current Farmers Bank customers, Aston said TowneBank will offer some additional services and the footprint of the larger institution, which covers Hampton Roads, Richmond and areas in North Carolina.
The combined total assets for the two banks, based on June 30 reports, will be $17.5 billion, with loans of $10.9 billion and deposits of $14.5 billion.
Under the terms of the agreement, Farmers shareholders would acquire 0.605 shares of TowneBank stock for each share of Farmers stock owned. Based on TowneBank’s 20-day average stock price, the deal would be valued at roughly $56 million.
Farmers Bank CEO Vernon Towler said in an announcement that his bank was privileged to partner with TowneBank.
“They share with Farmers Bank a commitment to philanthropy and community engagement,” Towler said. “TowneBank is an incredibly strong organization.”
Founded in 1999, TowneBank has grown to offer banking, mortgages, wealth management, insurance, real estate and other financial services. With $16.9 billion in total assets, it is one of the largest banks headquartered in Virginia. Farmers Bank had total assets of around $609 million as of June 30.
Trevor Metcalfe, 757-222-5345, trevor.metcalfe@pilotonline.com
