TowneBank (TOWN) and Village Bank and Trust Financial (VBFC) said Tuesday they have received approval from the Federal Deposit Insurance Corp. and the Virginia State Corporation Commission for their proposed merger.

The deal is expected to close in early April, they said.

The latest approvals were the final regulatory hurdles the companies needed to clear before executing the $120 million transaction, which will pay $80.25 for each Village Bank share in cash.

More than 86% of Village Bank shares voted at a Dec. 19 special meeting also backed the deal, the companies said.

Following the merger, the acquired Village Bank locations will operate as Village Bank, a Division of TowneBank, until mid-June when its core systems and operations will be fully converted into TowneBank, the companies added.

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