TowneBank to acquire Farmers Bankshares for $56.0M in stock

Aug. 18, 2022 8:40 AM ETFarmers Bankshares, Inc. (FBVA), TOWNBy: Liz Kiesche, SA News Editor2 Comments

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  • TowneBank (NASDAQ:TOWN) agreed Thursday to acquire Farmers Bankshares (OTCPK:FBVA) of Windsor, Virginia, for about $56.0M in stock in a deal that will add to its number one market share in the Virginia-Beach-Norfolk-Newport News region and expand its insurance revenue.
  • FBVA shares have gained 3.6% in premarket trading.
  • The combined company would have total assets of $17.5B, loans of $10.9B and deposits of $14.5B, based on June 30, 2022 financials.
  • Under the terms of the agreement Farmers Bank (OTCPK:FBVA) will get 0.6050 shares of TowneBank (TOWN) common stock for each FBVA share held, implying a deal value of $17.82, or $56.0M, based on TOWN's 20-day average stock price of $29.46 ended Aug. 17.
  • TowneBank (TOWN) expects the deal to add 5% to EPS with fully phased-in cost savings on a GAAP basis. It also expects the tangible book value dilution per common share impact to be less than 3% on a GAAP basis and accretive excluding accumulated other comprehensive income and interest rate market impact.
  • The transaction is expected to close in Q1 2023.
  • About a year ago, TowneBank (TOWN) named Brad Schwartz COO and president

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