TowneBank in Suffolk, Va., has agreed to buy Paragon Commercial Bank in Raleigh, N.C.
The $8.2 billion-asset TowneBank said in a press release Thursday that it will pay $323.7 million in stock for the $1.5 billion-asset Paragon. The deal is expected to close in the fourth quarter.
TowneBank said it plans to operate in the North Carolina cities of Raleigh, Charlotte and Cary as Paragon Bank, a division of TowneBank. Robert Hatley, Paragon’s president and CEO, will serve as president and CEO of the Paragon division. He will also become president of TowneBank’s North Carolina operations.
The acquisition is expected to be immediately accretive to TowneBank’s 2018 earnings, including the estimated costs tied to crossing $10 billion in assets. TowneBank said the deal will be “nominally dilutive” to its tangible book value.
Sandler O’Neill and Williams Mullen advised TowneBank. Raymond James and Wyrick Robbins Yates & Ponton advised Paragon.