For a quarter of a century, Midlothian had a bank of its own. It opened in December 1999 as Southern Community Bank and Trust, took the Village Bank name in 2005, grew to nine offices and $747.7 million in assets, spent the years after the financial crisis under regulatory orders, and then, at 12:01 a.m. on April 1, 2025, stopped existing as an independent company. TowneBank paid $80.25 a share in cash, about $120 million, for all of it.
This post lays out the whole arc: how the bank was built, what happened to it in 2012, how the sale came together over the summer of 2024, and what actually changed for account holders when the systems converted in June 2025. The short version for the business community is that the Midlothian-area branches stayed open and the bank's senior leadership carried over to the buyer, which is not how every bank merger goes.
At a glance
The deal: $80.25 per share in cash, about $120 million, announced September 24, 2024 and effective April 1, 2025. The price was roughly a 49 percent premium to Village's trading price and 171 percent of its tangible book value.
The seller: Village Bank and Trust Financial Corp., headquartered at 13319 Midlothian Turnpike, with $747.7 million in assets as of June 30, 2024, nine branches and about 145 employees.
The buyer: TowneBank, then $17.1 billion in assets, with nine Richmond-area branches of its own. The companies said the combination would push their Richmond deposits past $2 billion.
The branches: both Midlothian-area locations are open as TowneBank, including 13531 Midlothian Turnpike, Suite D, and 6736 Southshore Drive in Clover Hill. The Village Bank name came off the door on June 9, 2025.
The people: Jay Hendricks, Village's last president and chief executive, became a senior executive vice president of TowneBank and now leads its South Central Virginia region from the same corridor.
Twenty-five years, from Southern Community to Village Bank
FDIC records date the bank's establishment to December 13, 1999, as Southern Community Bank and Trust. Tom Winfree joined in April 2001 and became president and chief executive; the holding company was incorporated in January 2003, and the whole enterprise was renamed Village Bank in 2005.
Growth came by acquisition as well as by branch. On October 14, 2008, Village bought River City Bank of Mechanicsville and its three offices, which gave it eleven locations across Henrico, Powhatan and Chesterfield. That was the high-water mark of the expansion, and it arrived in the same month the credit markets seized.
2012, the year it could have gone the other way
Village took $14.7 million in federal TARP capital on May 1, 2009. It lost roughly $12 million in 2011. By 2012 the bank held about $555 million in assets and was operating under two regulatory agreements: an FDIC consent order in February and a written agreement with the Federal Reserve in June.
The turnaround was run by William G. Foster Jr., known as Bill Foster, who arrived as a consultant and became president in August 2013; Winfree retired in February 2014. Foster described the assignment to American Banker in 2020 this way: "In 2012, I committed to help Village for at least a year, fell in love with the people and the mission, and stayed more than eight years."
November 2013: the U.S. Treasury auctioned its Village TARP preferred stock, recovering $5.67 million of the $14.7 million. The difference was recorded as a loss to taxpayers.
August 2014: a one-for-sixteen reverse stock split.
2014 to 2016: the bank vacated its four-story headquarters at Watkins Centre and sold the 73,873-square-foot building on June 16, 2016, to Uphoff Ventures for $12.25 million.
March 27, 2015: a rights offering at $13.87 a share. Investor Kenneth R. Lehman bought 576,800 shares for about $8 million and became the majority shareholder, holding between 51 and 53 percent over the years that followed.
December 14, 2015: the FDIC consent order was terminated.
August 14, 2020: James E. Hendricks Jr., who had joined in 2013 as chief credit officer after years at SunTrust and Crestar and at the Office of the Comptroller of the Currency, succeeded Foster as president and chief executive. The bank held about $570 million in assets.
How the sale came together
The merger proxy Village filed with the Securities and Exchange Commission on November 14, 2024 lays out the process in unusual detail, which is worth reading if you have ever wondered how a community bank actually gets sold.
Date | Step |
|---|---|
January to August 2024 | The board works with Janney Montgomery Scott to review the bank's options. |
June 17, 2024 | Eight banks are contacted. |
July 31, 2024 | Four bids are in hand. TowneBank's, at $80.00 a share, is the highest. |
August 16, 2024 | TowneBank raises its offer to $80.25. |
September 23, 2024 | The merger agreement is signed. |
September 24, 2024 | The deal is announced publicly. |
December 19, 2024 | Village shareholders approve it, 1,298,806 shares for and 1,691 against. |
March 11, 2025 | The FDIC and the Virginia State Corporation Commission approve. |
April 1, 2025 | The merger takes effect at 12:01 a.m. |
TowneBank was candid about why it wanted the franchise. Executive chairman Bob Aston told Richmond BizSense the day after the announcement: "Particularly in Chesterfield and Hanover counties, this will kind of complete our branching network. Chesterfield and Hanover are growing like crazy." It was only TowneBank's second Richmond-market acquisition; the first was Franklin Federal Savings, a $275 million deal that closed January 2, 2015.
What changed in June 2025
The legal close and the customer-facing change were three months apart. Accounts moved to TowneBank's systems over the weekend of June 6 to 9, 2025, and the transitional name "Village Bank, a Division of TowneBank" was retired on June 9. These are the items TowneBank flagged on its own transition pages for former Village customers:
The routing number changed to 051408949.
Recurring transfers and eBills set up in Village's online banking did not carry over and had to be re-established.
New TowneBank debit cards became active June 9.
Wire and ACH cut-off times changed.
TowneBank's partnership page for former Village customers, linked below, is where those changes are documented.
Where things stand now
TowneBank reported in its second-quarter 2025 results that the merger added $576.57 million in loans and $637.49 million in deposits. FDIC data as of June 30, 2025 put TowneBank fifth in the Richmond market with $2.2 billion in deposits and a 3.26 percent share across sixteen branches. Branch counts reported right after the closing ranged from sixteen to eighteen depending on the source, so the FDIC figure is the one to lean on.
The leadership carried over. Hendricks is president of TowneBank's South Central Virginia region, described by the bank as "seven locations stretching from Powhatan to the west and Ashland to the north." Jennifer Church, formerly of Village, is TowneBank's Richmond director of retail banking. Frank E. Jenkins Jr., a former Village director, joined TowneBank's board. And 13319 Midlothian Turnpike, the old headquarters address, is still in use as a TowneBank office.
TowneBank has kept buying since: Old Point Financial closed September 1, 2025 and Dogwood State Bank closed January 12, 2026, bringing it to $22.62 billion in assets as of June 30, 2026.
What it means for the business community
Two things are true at once. A $22 billion balance sheet is a different kind of lender from a $748 million one. At the same time, a bank headquartered on Midlothian Turnpike, where a small business owner could know the whole chain of command, is now one region inside a much larger company run from Hampton Roads.
What softened the change here is continuity of people and places. The branch on Midlothian Turnpike and the one on Southshore Drive are the same ones Village customers were using in 2024, and the executives named above came with them. TowneBank Richmond president Pat Collins came out to talk the merger through with the MBA at an October 23, 2025 Lunch and Learn at Salisbury Country Club, arranged by longtime MBA board member Jeff Raihall of TowneBank.
Read more
TowneBank to acquire Midlothian-based Village Bank in $120M deal and TowneBank eyes growth in Chesterfield, Hanover, Richmond BizSense, September 2024
TowneBank finalizes acquisition of Midlothian-based Village Bank, Richmond BizSense, April 2025
Agreement to merge, September 24, 2024, and completion of the merger, April 1, 2025
TowneBank's Village Bank partnership page, including the conversion details for former Village customers
Village Bank's definitive merger proxy, filed with the SEC November 14, 2024, for the full background of the sale process
Latest FDIC deposit rankings for the Richmond market, Richmond BizSense, October 2025
This post draws on Richmond BizSense reporting, the two companies' press releases, Village Bank's SEC merger proxy and annual reports, TowneBank's own customer transition pages and quarterly results, FDIC deposit data, and American Banker. Dollar figures for the deal are reported as about $120 million; sources give both $120.0 million and $120.4 million.
Last updated September 16, 2026.