Regulators approve TowneBank-Franklin Financial deal
Federal and state regulators have approved TowneBank’s plan to acquire the parent company of Franklin Federal Savings Bank.
The deal, valued at $275 million when announced in July, is expected to close in early January.
Hampton Roads-based TowneBank and Richmond-based Franklin Financial Corp. said Friday that regulatory applications for the proposed deal have been approved by the Federal Deposit Insurance Corp. and the Virginia State Corporation Commission.
The stockholders of the two institutions also have endorsed the deal in separate stockholder meetings.
Under the terms of the deal, Franklin shareholders will receive 1.40 shares of TowneBank common stock for each common share of Franklin.
TowneBank, founded in 1999, operates 28 banking offices in Hampton Roads and North Carolina. It had total assets of $4.97 billion on Sept. 30, the end of the third quarter.
Franklin, begun in 1933, operates eight banking offices in the Richmond area and has assets of $1.1 billion.