Three years after going public and shifting away from a throwback model of banking, Franklin Federal Savings Bank is taking another big leap.
The 80-year-old Richmond bank and its parent company will be absorbed into Hampton Roads-based TowneBank in a $275 million acquisition announced Tuesday. Franklin Federal shareholders will receive 1.4 shares of TowneBank stock for each Franklin share they own.
It’s the third M&A deal announced this year involving a Richmond bank and the fourth in the last 12 months, further illustrating that the trend of consolidation in the banking industry overall may be picking up in the local market.
“Everybody is going through the M&A dance right now,” said Rick Wheeler, CEO of Franklin Federal and its Franklin Financial Corp. holding company. “I think it’s the sign of the times.”