Merger expands TowneBank’s reach to Triangle-area, Charlotte

By on January 31, 2018

TowneBank has completed its merger with Paragon Bank, expanding the footprint of the Hampton Roads-based financial institution into the Raleigh, Cary and Charlotte markets.

“We are pleased to welcome our friends at Paragon to the TowneBank family as we take this exciting step forward together,” said G. Robert Aston, Jr., Chairman and CEO of TowneBank.

“This combination of two great community banks will allow us to better serve the financial needs of our customers, while also providing the opportunity to enhance profitability and increase shareholder value,” Aston said.

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TowneBank will operate in the Raleigh, Charlotte, and Cary markets as Paragon Bank, a division of TowneBank.

Robert C. Hatley, former President and CEO of Paragon, will continue in his role as the President and CEO of the Paragon Division.

“Our staff, our clients, our Board of Directors and our shareholders are extremely excited this day has come. The combination of two outstanding banks, which are mirror images of each other in their business models, the attention to detail, their commitment to their staffs, their clients and their communities, will create the best banking franchise in North Carolina and Virginia,” said Hatley.

In connection with the completion of the merger, two Paragon directors, Robert C. Hatley and Howard Jung, will join the Board of Directors of TowneBank.

TowneBank operates banking offices in Southern Shores, Nags Head, Corolla, Grandy, Moyock and Camden in northeastern North Carolina, as well as in southeastern and central Virginia.

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The merger with Paragon Commercial Corporation was finalized on Friday, with stockholders of Paragon entitled to receive 1.7250 shares of TowneBank common stock for each share of Paragon common stock.

With total assets of $8.52 billion as of December 31, 2017, TowneBank is one of the largest banks headquartered in Virginia. Based on financial data as of September 30, 2017 and reflecting the merger with Paragon, TowneBank would have total assets of $10.5 billion, gross loans of $7.3 billion and total deposits of $7.8 billion.

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