The $16.9 billion-asset TowneBank said it will pay $56 million in stock for Farmers. The deal is expected to close in the first quarter of 2023.
The $609 million-asset Farmers operates eight branches and serves areas throughout the Tidewater region of Virginia.
The combined company is expected to have total assets of $17.5 billion, loans of $10.9 billion and deposits of $14.5 billion.
"We believe our partnership can bring additional products and
TowneBank said it expects the deal to be about 5% accretive to earnings per share after all cost savings are realized in 2024. It projected savings of 35% of the banks' noninterest expense base.
The buyer expects tangible book value dilution per common share impact to be less than 3% and expects to earn back the dilution within three years.