Hailey Johnson
Village Bank & Trust Financial Corp. recently completed its merger with TowneBank, with the latter acquiring the former and its subsidiary, Village Bank. The merger, which was first announced in September 2024, was finalized on April 1, 2025. Following the merger, Village Bank & Trust Financial Corp. ceased to exist as a separate entity, and its common stock was delisted from the Nasdaq Capital Market. TowneBank, founded in 1999, is a full-service bank with a strong focus on community engagement and enriching lives. The combined companies now boast significant assets, loans, and deposits, with a presence in Virginia and North Carolina.
| Characteristics | Values |
|---|---|
| Date of Merger | 1st April 2025 |
| Companies Involved | TowneBank, Village Bank and Trust Financial Corporation |
| Type of Merger | Two-step process: Village Bank first merged with a TowneBank subsidiary, then with TowneBank itself |
| Stock Changes | Village's common stock was delisted from the Nasdaq Capital Market and converted into the right to receive $80.25 in cash |
| Resulting Company | TowneBank, with Village Bank operating as "Village Bank, a Division of TowneBank" until June 2025 |
| Total Assets | TowneBank: $17.25 billion (as of 31 December 2024) |
| Village Bank: $747.7 million (as of 30 June 2024) | |
| Combined Assets | $17.8 billion (as of 30 June 2024) |
| Loans | $12.1 billion (as of 30 June 2024) |
| Deposits | $14.9 billion (as of 30 June 2024) |
| Benefits | Enhanced capabilities, expanded services, increased presence in Richmond, and diverse revenue synergies |
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What You'll Learn
TowneBank and Village Bank and Trust Financial Corporation announce their merger
On September 24, 2024, TowneBank and Village Bank and Trust Financial Corporation ("Village") announced their agreement to merge. The merger was completed on April 1, 2025, with TowneBank acquiring Village and its subsidiary, Village Bank.
The merger enhances TowneBank's presence and operations in the Richmond Metropolitan Statistical Area in Virginia, supporting its regional growth strategy. It also provides opportunities for diverse revenue streams and strategic capital deployment through the Towne Financial Services Group.
The combined company benefits from increased total assets, loans, and deposits, allowing them to offer additional products and expanded services to their clients. Former Village Bank president and CEO, James Hendricks, Jr., expressed enthusiasm for the merger, highlighting the shared commitment to community engagement and the ability to better serve customers' banking needs.
As part of the integration, former Village Bank director Frank E. Jenkins, Jr. joined TowneBank's board of directors, and James Hendricks, Jr. assumed the role of senior executive vice president at TowneBank. The merger received strong support from Village shareholders, demonstrating the benefits and potential of this partnership.
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TowneBank's $120 million all-cash deal
TowneBank, a $17 billion-asset Suffolk-based company, has agreed to pay $120 million in an all-cash deal for an in-state rival, the Midlothian-based Village Bank and Trust Financial Corporation. The deal, which was announced on September 24, 2024, and completed on April 1, 2025, will see TowneBank acquire Village Bank and its wholly owned subsidiary, Village Bank.
The $748 million-asset Village Bank franchise is focused on the Richmond Metropolitan Statistical Area, home to eight of its nine branches. This deal will give TowneBank 17 branches and $2.1 billion in deposits in Richmond. The combined company will have $17.8 billion in assets, including loans of $12.1 billion, and deposits of $14.9 billion.
The merger is intended to enhance TowneBank's presence in the Richmond MSA and provide opportunities for diverse revenue synergies with its Towne Financial Services Group and strategic capital deployment. TowneBank's Executive Chairman, G. Robert Aston, Jr., expressed excitement about the partnership, stating that it will bring additional products and expanded services to Village Bank clients while strengthening their Richmond presence, which is crucial for their future growth.
Jay Hendricks, President and CEO of Village Bank, also commented on the merger, noting that it is a strategic move to enhance the value they deliver to their customers. He added that the partnership will enable them to meet their customers' banking needs with greater resources and products while providing increased opportunities for their employees.
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Village Bank shareholders to receive $80.25 per share
Village Bank & Trust Financial Corp. (NASDAQ:VBFC) has completed its merger with TowneBank (NASDAQ:TOWN). The merger was finalized on April 1, 2025, and resulted in Village Bank shareholders receiving $80.25 in cash for each share of common stock. The merger, initially announced in September 2024, involved a two-step process where Village first merged with a TowneBank subsidiary and then with TowneBank itself.
Following the merger, Village Bank & Trust Financial Corp. ceased to exist as a separate entity, and its common stock was delisted from the Nasdaq Capital Market and suspended from trading on Nasdaq. A notification of delisting was filed with the SEC on March 31, 2025, and TowneBank plans to deregister Village's common stock and suspend its reporting obligations under the Securities Exchange Act as soon as possible.
The merger led to changes in the management and governance of the combined entity. All directors of Village ceased serving on its board, with Frank E. Jenkins, Jr., a former Village director, appointed to TowneBank's board. Additionally, James E. Hendricks, Jr., the former President and CEO of Village, became a Senior Executive Vice President of TowneBank.
The combined company, with total assets of $17.25 billion as of December 31, 2024, is one of the largest banks headquartered in Virginia, with a strong presence in Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina. The merger is expected to bring additional products and expanded services to Village Bank clients while enhancing TowneBank's presence in the Richmond MSA and providing opportunities for diverse revenue synergies with Towne Financial Services Group.
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TowneBank's expansion of services and presence in Richmond
TowneBank, a Virginia-based bank founded in 1999, has expanded its services and presence in Richmond, Virginia, through its merger with Village Bank and Trust Financial Corporation. The agreement to merge was announced on September 24, 2024, with the completion of the merger taking effect on April 1, 2025.
The merger enhances TowneBank's presence in the Richmond Metropolitan Statistical Area (MSA) and provides opportunities for diverse revenue synergies and strategic capital deployment. TowneBank's Executive Chairman, G. Robert Aston, Jr., expressed that the partnership with Village Bank will bring additional products and expanded services to Village Bank clients while strengthening TowneBank's presence in Richmond, which is crucial for their future growth.
Village Bank, a Virginia-based state commercial bank, ceased to exist as a separate entity following the merger. Its common stock was delisted from the Nasdaq Capital Market, and shareholders received $80.25 in cash for each share of common stock. The merger also resulted in changes to the management and governance of the combined entity, with former Village Bank executives assuming roles in TowneBank's leadership.
TowneBank, built on relationships and a culture of caring, offers a full range of banking and other financial services. With over 50 banking offices across Virginia and North Carolina, TowneBank is dedicated to promoting social, cultural, and economic growth in the communities it serves. The merger with Village Bank aligns with TowneBank's commitment to enriching lives and strengthening its capabilities in the financial services sector.
Through its affiliated companies, TowneBank provides expertise in wealth management, insurance, benefits, mortgages, and more. With total assets of $17.25 billion as of December 31, 2024, TowneBank is one of the largest banks headquartered in Virginia. The merger with Village Bank, which had total assets of $747.7 million as of June 30, 2024, further solidifies TowneBank's position and expansion in the Richmond market.
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Village Bank to operate under transitional brand until June 2025
TowneBank and Village Bank and Trust Financial Corporation announced their agreement to merge in September 2024. The merger was completed on 1 April 2025, with Village Bank shareholders receiving $80.25 per share for each outstanding common share.
Following the merger, Village Bank will continue to operate under the transitional brand "Village Bank, a Division of TowneBank" until June 2025. During this time, Village Bank will work to fully integrate its systems and operations with TowneBank's core platforms. This integration process is expected to enhance TowneBank's presence in the Richmond Metropolitan Statistical Area in Virginia and support its regional growth strategy.
The merger between TowneBank and Village Bank brings together two organisations with a shared commitment to community engagement and neighbourhood banking. The combined company will offer a full range of banking and financial services, with expanded capabilities and a focus on serving others and enriching lives.
The partnership between TowneBank and Village Bank is expected to bring additional products and expanded services to Village Bank clients, while also enhancing TowneBank's Richmond presence and providing opportunities for diverse revenue synergies with Towne Financial Services Group. This strategic move is designed to enhance the value delivered to customers and provide increased opportunities for employees.
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Frequently asked questions
No, Village Bank merged with TowneBank.
TowneBank and Village Bank announced their merger on September 24, 2024.
The merger was completed on April 1, 2025.
The merger resulted in Village Bank & Trust Financial Corp. ceasing to exist as a separate entity. Village Bank's common stock was suspended from trading on Nasdaq, and its shareholders received $80.25 in cash per share. The combined company has a stronger presence in the Richmond MSA and benefits from diverse revenue synergies.
