TowneBank (Nasdaq: TOWN) announced on Monday the completion of its merger with Raleigh-based Dogwood State Bank, which has a Wilmington presence.

The merger "strengthens TowneBank’s position in key North Carolina markets, including Raleigh, Charlotte, Greensboro-Winston Salem, and Greenville. In addition, the merger expands the bank’s footprint along the Eastern North Carolina coast from the Outer Banks to include Morehead City, Wilmington and Fayetteville, together with a new location in historic Charleston, South Carolina," according to a news release.

Dogwood State Bank, ​a state-chartered community bank, has a branch in Wilmington at 1131 Military Cutoff Road in The Forum. According to Dogwood's website, a former president of Wilmington-based Live Oak Bank, Scott Custer, is a member of the bank's board of directors.

The merger was announced in August 2025 "and received overwhelming support at the special meeting of Dogwood shareholders held in December 2025," the release stated.

Following the merger, which became effective Monday, Dogwood locations will operate as “Dogwood State Bank, a Division of TowneBank” until November 2026, when the core systems and operations of Dogwood are scheduled to be converted into those of Hampton Roads, Virginia-based TowneBank, according to the release.

Steven W. Jones, former CEO of Dogwood, will continue in a key leadership role with the combined company and join TowneBank as president of the Carolinas, serving as a member of the TowneBank Corporate Management Group, the release stated. Jones and George (Robin) Perkins, a former director of Dogwood, were appointed to the TowneBank Board of Directors.

Jones stated in the release, ”When it came to forming a partnership to continue the legacy of Dogwood, TowneBank demonstrated values that naturally aligned with ours. We are excited to combine our resources into one dedicated financial institution that celebrates the power of local banking.”

“We are honored to welcome Steve and his talented teammates to our Towne family. Their efforts to build Dogwood into an excellent, high-performing bank are truly impressive,” said TowneBank Executive Chairman G. Robert Aston Jr. in the release. “We look forward to working with them to take our Main Street Bank forward in our existing and new fast-growing markets in North and South Carolina.”