Retail and commercial banking services provider TowneBank has agreed to acquire Monarch Financial Holdings, a move that will create a hometown bank with $7.3bn in assets.
Under the agreed terms, TowneBank will pay around $229m to acquire Monarch.
Monarch Financial is the one-bank holding company for Monarch Bank, which offers a wide variety of traditional banking services.
Monarch Bank currently has offices in the cities of Chesapeake, Virginia Beach, Norfolk, Newport News, Williamsburg and Richmond, Virginia.
With total assets worth $6.17bn, TowneBank operates 37 banking offices. It offers a full range of financial services through its controlled divisions and subsidiaries that include Towne Investment Group, Towne Insurance Agency, TFA Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices Towne Realty and Towne 1031 Exchange.
Subject to shareholder and regulatory approvals, the merger is expected to be completed in the second quarter of 2016.
Upon closing of the deal, the combined company is anticipated to have $5.8bn in deposits and loans worth $5.4bn.
Monarch CEO Brad E. Schwartz said: "This combination of the top two performing community banks in the market gives us a dynamic foundation to serve our commercial, mortgage and consumer customers with even greater convenience, expanded product and service offerings, and additional lending capacity.
"This merger is a great outcome for our company’s shareholders and positions us well for sustainable success over the long term."
On a pro forma basis, TowneBank said the combined companies will have 20.64% of deposit market share in Hampton Roads.
Image: TowneBank and Monarch Financial sign a definitive merger agreement. Photo: courtesy of stockimages / FreeDigitalPhotos.net.