SUFFOLK, Va. (WAVY) — TowneBank is acquiring another longtime local bank.

An agreement announced Thursday will merge Windsor-based Farmers Bank and parent company Farmers Bankshares, Inc. into TowneBank, which is based nearby in Suffolk.

“Our TowneBank family is humbled and excited to join hands with our long-time friends at Farmers,” said G. Robert Aston, Jr., Executive Chairman of TowneBank. “We believe our partnership can bring additional products and expanded services to the clients of Farmers Bank while helping our communities grow and prosper.”

TowneBank will take on employees of the 103-year-old banking chain, which has eight branches and service area in the Tidewater region.

Farmers Bankshares had total assets of $608.6 million as of June 30, 2022, according to a TowneBank press release, and based on financial reporting from that date, the combined companies would have total assets of $17.5 billion, loans of $10.9 billion and deposits of $14.5 billion. 

Shareholders of Farmers will receive 0.6050 shares of TowneBank common stock for each share of Farmers owned under the agreement.

The merger was approved by the boards of directors for both Farmers and TowneBank, and is expected to close in the first quarter of 2023.

“We feel privileged to partner with our neighbors at TowneBank,” stated Vernon Towler, CEO of Farmers. “They share with Farmers Bank a commitment to philanthropy and community engagement. TowneBank is an incredibly strong organization.”

TowneBank was founded in 1999 and has more than 40 banking offices in Hampton Roads, Central Virginia and parts of North Carolina.