Dogwood State Bank Market Research Report

Background

Overview

Dogwood State Bank is a North Carolina state-chartered community bank headquartered in Raleigh, North Carolina. As of June 30, 2025, the bank reported approximately $2.4 billion in total assets. It offers a comprehensive range of banking products and services through its online platforms and 17 branch offices across North Carolina, South Carolina, and Eastern Tennessee. The bank specializes in providing lending services to small businesses through its Dogwood State Bank Small Business Lending division.

Mission and Vision

Dogwood State Bank is committed to becoming the preferred banking partner for businesses, business owners, professionals, and their employees. By redefining what it means to "Bank Local," the bank leverages strong leadership, invests in technology, and emphasizes personalized, superior customer service to transform the landscape of community banking.

Industry Significance

Operating in the southeastern United States, Dogwood State Bank plays a pivotal role in supporting local economies by offering tailored financial solutions to small and medium-sized enterprises (SMEs). Its focus on small business lending underscores its commitment to fostering entrepreneurship and economic growth within its service areas.

Key Strategic Focus

Core Objectives

• Expansion of Market Presence: Enhancing the bank's footprint in high-growth markets along the Interstate 85 corridor, particularly in North and South Carolina.

• Integration and Synergy: Successfully integrating acquired entities to realize operational efficiencies and broaden service offerings.

• Technological Advancement: Investing in digital banking solutions to provide customers with convenient and secure access to financial services.

Areas of Specialization

• Small Business Lending: Offering customized loan solutions, including SBA 7(a) and SBA 504 loans, to support the growth and sustainability of small businesses.

• Community Banking: Providing personalized banking services that cater to the unique needs of local communities, fostering strong customer relationships.

Key Technologies Utilized

• Digital Banking Platforms: Implementing user-friendly online and mobile banking interfaces to enhance customer engagement and accessibility.

• Data Analytics: Utilizing data-driven insights to inform decision-making processes and tailor financial products to customer needs.

Primary Markets Targeted

• Geographic Focus: North Carolina, South Carolina, and Eastern Tennessee, with a strategic emphasis on the Interstate 85 corridor.

• Customer Segments: Small and medium-sized businesses, professionals, and local residents seeking personalized banking services.

Financials and Funding

Funding History

• Recapitalization: In May 2019, Dogwood State Bank completed a $100 million recapitalization, positioning the organization for growth and expansion.

• Recent Capital Raise: In March 2023, the bank raised $16.4 million at $20.00 per share, indicating strong investor confidence and providing capital for strategic initiatives.

Recent Funding Rounds

• August 2025 Acquisition Announcement: TowneBank announced plans to acquire Dogwood State Bank in an all-stock transaction valued at approximately $476.2 million, subject to regulatory approval.

Notable Investors

Specific details regarding individual investors are not publicly disclosed.

Utilization of Capital

• Expansion Initiatives: Funding the acquisition of Community First Bancorporation to enhance market presence.

• Technological Investments: Upgrading digital banking platforms to improve customer experience.

• Operational Enhancements: Strengthening infrastructure to support increased business activities.

Pipeline Development

Key Pipeline Candidates

• Community First Bancorporation Acquisition: Completed on August 1, 2024, this acquisition added $682.8 million in total assets, $474.1 million in gross loans, and $572.1 million in total deposits to Dogwood's balance sheet.

Stages of Development

• Integration Phase: Post-acquisition integration of Community First Bancorporation's operations and systems.

Target Conditions

• Market Expansion: Strengthening presence in high-growth markets along the Interstate 85 corridor.

Anticipated Milestones

• Operational Synergies: Achieving cost savings and operational efficiencies through integration.

• Market Penetration: Increasing market share in targeted regions.

Technological Platform and Innovation

Proprietary Technologies

• Digital Banking Solutions: Developing and enhancing online and mobile banking platforms to provide seamless customer experiences.

Significant Scientific Methods

• Data Analytics: Employing advanced analytics to understand customer behavior and inform product development.

AI-Driven Capabilities

• Customer Service Automation: Implementing AI chatbots and virtual assistants to provide timely customer support.

Leadership Team

Executive Profiles

• Steve Jones – Chief Executive Officer (CEO): With extensive experience in the banking sector, Steve has been instrumental in driving Dogwood's growth and strategic direction.

• Richard D. Burleson – President and CEO of Community First Bancorporation: Led Community First Bank through significant growth and played a key role in the merger with Dogwood.

Key Contributions

• Steve Jones: Guided the bank through successful acquisitions and expansion initiatives.

• Richard D. Burleson: Facilitated the merger process, ensuring a smooth integration of operations.

Leadership Changes

Recent Appointments

• Steve Jones: Following the announcement of the TowneBank acquisition, Steve Jones is expected to join TowneBank as President of North Carolina and South Carolina operations, continuing to lead the combined entity's efforts in these regions.

Competitor Profile

Market Insights and Dynamics

• Market Size: The southeastern U.S. banking market is substantial, with a growing demand for community banking services.

• Growth Potential: High-growth areas along the Interstate 85 corridor present opportunities for expansion.

• Industry Trends: Increasing emphasis on digital banking solutions and personalized customer service.

Competitor Analysis

• TowneBank: A regional bank headquartered in Virginia, TowneBank has expanded its presence in the Carolinas and is set to acquire Dogwood State Bank, enhancing its footprint in the region.

• First Citizens Bank: A major player in the Carolinas, offering a wide range of banking services with a strong community focus.

• BB&T (now Truist): A significant competitor with extensive operations in the southeastern U.S., providing comprehensive financial services.

Strategic Collaborations and Partnerships

• Community First Bancorporation Acquisition: Enhanced market presence and operational capabilities in South Carolina.

• TowneBank Acquisition: Expected to provide access to additional resources and expanded market reach upon completion.

Operational Insights

• Market Position: Dogwood State Bank holds a strong position in its service areas, with a focus on personalized banking services.

• Competitive Advantages: Emphasis on community engagement, personalized service, and strategic acquisitions to drive growth.

Strategic Opportunities and Future Directions

Strategic Roadmap

• Integration Success: Ensuring seamless integration of Community First Bancorporation and TowneBank to realize synergies.

• Market Expansion: Leveraging the expanded footprint to offer services in new high-growth markets.

• Digital Transformation: Continuing to invest in digital banking solutions to meet evolving customer expectations.

Future Business Directions

• Service Diversification: Introducing new financial products and services to cater to a broader customer base.

• Community Engagement: Strengthening community involvement through local initiatives and partnerships.

Opportunities for Expansion

• Geographic Reach: Utilizing the combined resources to enter additional markets along the Interstate 85 corridor.

• Product Innovation: Developing innovative financial solutions to address emerging customer needs.

Positioning for Future Objectives

By capitalizing on strategic acquisitions, investing in technology, and maintaining a strong community focus, Dogwood State Bank is well-positioned to achieve its future growth and service objectives.