HAMPTON ROADS — Hampton Roads-based TowneBank and Old Point Financial Corporation, the parent company of The Old Point National Bank of Phoebus, announced Thursday the signing of a definitive agreement and plan of merger which will see TowneBank acquire Old Point and OPNB.
TowneBank recently closed its acquisition of Village Bank and Trust Financial Corp. With the proposed acquisition of Old Point, the combined company would have total assets of $19.5 billion, loans of $13.1 billion and deposits of $16.3 billion as of Dec. 31, it said. TowneBank expects the acquisition to be approximately 10% accretive to earnings per share with fully phased-in cost savings on a GAAP (Generally Accepted Accounting Principles) basis.
“We are excited to partner with Old Point and welcome its talented team into our TowneBank family,” said G. Robert Aston, Jr., Executive Chairman of TowneBank. “Old Point has legendary status here in our community and most especially, in Hampton, Virginia where it was founded over 100 years ago.”
“I have the deepest respect for the Shuford family that has guided Old Point throughout the years with the highest of character and unwavering integrity,” he added. “Joining our two banking families together will create a combined franchise with a strong core deposit base, outstanding credit quality, and substantial synergies that will generate top-tier financial performance for our shareholders while helping our communities grow and prosper.”
Under the terms of the agreement, shareholders of Old Point will elect to receive either $41 in cash or 1.1400 shares of TowneBank common stock for each share of Old Point outstanding common stock. This corresponds to an aggregate transaction value of approximately $203 million, based on Old Point common stock currently outstanding. Old Point shareholders will have the right to elect cash or stock consideration so long as the total stock consideration issued represents between 50% and 60% of the total consideration paid.
The organization said that in consideration of the transaction, extensive due diligence was performed by the management teams of TowneBank and Old Point. The definitive agreement was approved by the boards of directors of Old Point and TowneBank.
Robert F. Shuford, Jr., Chairman, President and Chief Executive Officer of Old Point Financial Corporation added, “Great competition builds better companies and TowneBank has raised the bar high – to the benefit of Old Point. Under Bob Aston’s leadership, they have built an incredible franchise. Together, we will bring expanded relationships and services to our communities, enhanced opportunities for our employees, and significant value for our shareholders. We are excited about this partnership and the opportunity to bring together the Old Point and TowneBank families.”
The transaction is expected to close in the second half of 2025 and is subject to customary conditions, including regulatory approval, as well as the approval of Old Point’s shareholders.