Towne Bank Plunges 10.29% Post-Merger

On April 3, 2025, Towne Bank experienced a significant drop of 10.29% in pre-market trading, marking a notable decline in its stock performance.

Towne Bank recently completed its merger with Village Bank and Trust Financial Corp., a significant development that was announced in September 2024 and approved by Village shareholders in December 2024. This merger is expected to bring revenue synergies and strategic capital deployment opportunities for Towne Financial Services Group. Following the merger, Village Bank and Trust Financial Corp. ceased to exist as a separate entity, and its operations were integrated into Towne Bank.

As part of the merger agreement, Towne Bank's board of directors expanded to include Frank E. Jenkins, Jr., who previously served on the board of Village. Jenkins was appointed to the Towne Bank board effective April 1, 2025, and will participate in the board's standard non-employee director compensation arrangements. Additionally, James E. Hendricks, Jr., the former President and CEO of Village, was appointed as a Senior Executive Vice President at Towne Bank.

The merger is anticipated to enhance Towne Bank's presence in the Richmond Metropolitan Statistical Area (MSA) and provide opportunities for diverse revenue synergies. The Village Bank locations will operate as "Village Bank, a Division of TowneBank" until June 2025, when the core systems and operations of Village Bank are scheduled to be converted into those of TowneBank.