Changes coming for TowneBank and Monarch Financial customers

Posted at 9:43 PM, Dec 17, 2015
and last updated 2015-12-18 06:00:06-05

Hampton Roads, Va. - The way you handle your money could change if you bank with TowneBank or Monarch Financial.

The leaders of TowneBank and Monarch Financial have been talking intensely for the past three weeks, and today told their employees and the community that TowneBank will acquire Monarch.

“All my shirts in my closet have a Monarch logo on them, it is a little emotional, but Towne is a fantastic organization,” said Monarch CEO Brad Schwartz.

Schwartz said doesn’t think customers will feel that much of an effect.

“We competed with them for years for the same customers so I don’t see really any impact other than here is your new debit card, here’s your new checks, go to town,” said Schwartz.

Monarch Financial owns about 12 banks in the Hampton Roads area and the Outer Banks and TowneBank has almost 30 banking locations. Over the next two months bank leaders said they will be trying to figure out how they will restructure. Bank locations could close and some layoffs are possible.

"Those employees who may be misplaced along the way, we will certainly be very generous with how those folks are treated," says Robert Aston, the TowneBank CEO.

"Our goal is to minimize the impact on employees,” said Schwartz.

Several customers say they were surprised.

Customer Ted Baker said, “I just hope that the people wind up being happy, the employees.”

Streats Owner Neil Boden said, “Monarch is very good for local business. They have been wonderful for Streets, the restaurant I own and as far as TowneBank I have banked with them personally for the last ten years.”

Bank leaders hope to have the deal finalized by late June and still need to be approved by federal regulators and shareholders.

The two sides seemed very excited to be working together.