Today, Village Bank and Trust Financial Corp., whose stock has delivered an impressive 101% return over the past year and trades near its 52-week high of $77.90, announced the approval of a merger with TowneBank (NASDAQ:TOWN), as well as other related proposals, during a special meeting of shareholders.
The virtual gathering, which took place this morning, saw an 87.42% turnout of the company's common stock, with 1,311,594 shares represented. According to InvestingPro data, the company maintains a healthy financial position with a "GOOD" overall health score.
The merger proposal received overwhelming support, with 1,298,806 votes for and only 1,691 against. An amendment to the company's articles of incorporation to facilitate the merger was similarly approved, with 1,298,530 votes for the amendment.
Additionally, shareholders cast an advisory vote in favor of executive compensation related to the merger, with 1,160,309 votes for the proposal. A proposal to adjourn the meeting for further proxy solicitation was approved but rendered unnecessary as the primary proposals had already passed.
The company’s common stock, VBFC, is traded on the Nasdaq Capital Market. This merger is a significant step for both Village Bank and TowneBank, with the former being acquired by the latter according to the agreement dated September 23, 2024.
Village Bank & Trust Financial Corp., headquartered in Midlothian, Virginia, operates within the state commercial banks sector. The company's SEC filing on December 19, 2024, confirms the details of the vote and the merger agreement, reflecting the shareholders' support for the strategic consolidation.
This merger is expected to expand TowneBank's footprint and strengthen its market presence. Trading at a P/E ratio of 16.06 and maintaining consistent dividend growth of 12.5% over the last twelve months, Village Bank demonstrates strong fundamentals.
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