TowneBank Announces Merger with Old Point Financial Corporation
Deal News | Apr 03, 2025 | EIN
TowneBank, a significant player in the banking sector with its NASDAQ listing (TOWN), has announced its acquisition of Old Point Financial Corporation (NASDAQCM: OPOF) which is the parent company of The Old Point National Bank of Phoebus. This merger agreement signed on April 3, 2025, aims to strengthen TowneBank's presence in the Hampton Roads MSA by incorporating Old Point's robust deposit franchise. The combined entity, incorporating TowneBank's recent acquisition of Village Bank and Trust, will boast total assets of $19.5 billion, with loans amounting to $13.1 billion, and deposits worth $16.3 billion as of December 31, 2024. The merger is projected to enhance TowneBank's earnings per share by approximately 10% after realization of cost savings on a GAAP basis. The leadership from both firms has expressed enthusiasm; G. Robert Aston, Jr. of TowneBank praised the legendary reputation of Old Point, particularly in Hampton, Virginia, and Robert F. Shuford, Jr. of Old Point echoed this optimism for enhanced service offerings. Old Point shareholders are offered the choice of receiving $41.00 in cash or 1.1400 shares of TowneBank common stock for each Old Point share, with the transaction valued approximately at $203 million. The deal is scheduled to close in the latter half of 2025, pending regulatory and shareholder approvals.
Sectors
- Banking and Financial Services
Geography
- United States – The merger between TowneBank and Old Point Financial Corporation revolves around expanding operations particularly in the Hampton Roads area of Virginia, United States.
Industry
- Banking and Financial Services – The article discusses a merger between two banking institutions, TowneBank and Old Point Financial Corporation, making it prominent in the Banking and Financial Services sector.
Financials
- $203 million – The total transaction value of the merger agreement between TowneBank and Old Point Financial Corporation.
- $41.00 per share or 1.1400 shares of TowneBank common stock – The consideration options for Old Point shareholders in the merger deal.
- $19.5 billion – Pro forma total assets of the combined company after TowneBank's acquisition of Old Point and Village Bank and Trust.
- $13.1 billion – Pro forma total loans of the combined company after the merger.
- $16.3 billion – Pro forma total deposits of the combined company after the merger.
- 10% – Expected increase in earnings per share post-acquisition on a GAAP basis.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| TowneBank | Acquirer | Company | A financial institution listed on NASDAQ under the ticker TOWN that is acquiring Old Point Financial Corporation. |
| Old Point Financial Corporation | Target | Company | The parent company of The Old Point National Bank of Phoebus, being acquired by TowneBank. |
| The Old Point National Bank of Phoebus | Subsidiary | Company | A subsidiary of Old Point Financial Corporation that is part of the acquisition by TowneBank. |
| G. Robert Aston, Jr. | Executive Chairman of TowneBank | Person | Executive leader expressing enthusiasm about the merger with Old Point Financial. |
| Robert F. Shuford, Jr. | Chairman, President, and CEO of Old Point Financial Corporation | Person | Executive leader expressing positive outlook on partnership with TowneBank. |
| Village Bank and Trust Financial Corp. | Recently Acquired Company | Company | Another financial entity recently acquired by TowneBank, contributing to the combined company's assets. |