FBVA - TowneBank to acquire Farmers Bankshares for $56.0M in stock
- 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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TowneBank to acquire Farmers Bankshares for $56.0M in stock