#United States #Raleigh #Merger #TowneBank #Dogwood Bank

Dogwood State Bank and TowneBank Merger Approved

On December 3, 2025, Dogwood State Bank (OTCQX: DSBX) received approval from its shareholders for the merger with TowneBank (NASDAQ: TOWN). This decision was made at a special shareholders meeting and reflects a positive outlook for both financial institutions as they prepare for this strategic integration.

The anticipated merger is set to be finalized in early 2026, contingent on meeting customary closing conditions and receiving all necessary regulatory approvals. This merger represents a pivotal moment for both banks, highlighting a commitment to enhancing service offerings and strengthening market presence.

Steve Jones, CEO of Dogwood, expressed his satisfaction with the outcome, stating, "We are pleased that our shareholders have approved the proposed merger into TowneBank. This approval marks a significant milestone, and we look forward to completing the merger and moving forward together." The successful merger is expected to facilitate a broader range of services and improved banking experience for customers in North Carolina, South Carolina, and Eastern Tennessee, where Dogwood State Bank operates its branches.

About Dogwood State Bank

Dogwood State Bank, headquartered in Raleigh, North Carolina, has approximately $2.4 billion in total assets. It offers various banking products and services, emphasizing providing lending solutions to small businesses. The bank aims to redefine local banking by forming meaningful relationships with business owners and their employees, ensuring they understand everyone’s unique needs in the local communities it serves.

The merger with TowneBank signifies a reinforcement of Dogwood's dedication to becoming a central banking institution for businesses and professionals. By fostering local relationships and focusing on community, both banks are poised to enhance their competitive edge and responsiveness to client needs.

Future Outlook

Despite positive sentiments surrounding the merger, the journey ahead will require careful navigation. Both banks acknowledge several potential challenges, including the attainment of regulatory approvals and the integration of two distinct banking cultures. As both entities embark on this merger, they are committed to executing a seamless transition that minimizes disruption for their clients.

The announcement also highlighted that while new opportunities are on the horizon, Dogwood's management is fully aware of various risks associated with such a significant move. These include potential operational hurdles, customer transition issues, and broader economic factors that could affect the banks' performance post-merger.

In light of these complexities, Dogwood and TowneBank's leadership teams remain optimistic. They are working diligently to align their operations and ensure that the merger will yield substantial benefits for customers and stakeholders alike.

Conclusion

The approval of the Dogwood State Bank merger into TowneBank marks a transformational moment not only for the banks involved but also for their devoted customers. As they prepare for this transition, both banks are dedicated to leveraging their combined strengths to deliver superior financial services in their regions. For shareholders and clients alike, the past week's developments signal a proactive approach to fostering growth in a dynamic banking environment. As the banking landscape evolves, this merger may well be a step toward creating a more robust financial institution that is better equipped to meet the needs of its customers.