Old Point buys Windsor bank

Published 7:10 pm Wednesday, November 22, 2017

Windsor-based Citizens National Bank will be merged into Old Point Financial Corp. following a $7.9-million sale announced this week.

Old Point Financial Corp. and Citizens National Bank jointly announced they have entered into a definitive merger agreement pursuant to which Old Point will acquire Citizens National in a stock and cash transaction.

When the transaction closes, Citizens National will merge into The Old Point National Bank of Phoebus, a wholly owned subsidiary of Old Point.

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The boards of directors of both institutions have approved the transaction, which is expected to be completed in first quarter of 2018, subject to the approval of Citizens National shareholders and customary regulatory approvals and other closing conditions.

“We believe this to be a strategic transaction which expands our market position in Isle of Wight County, an area with compelling customer demographics and solid growth potential,” said Robert F. Shuford Jr., Old Point National Bank president and chief executive officer.

“In addition, this transaction will further strengthen our balance sheet by diversifying our loan portfolio and accelerating our lending activity in the Southside region of our footprint.”

“Our board of directors is looking forward to joining forces with Old Point and considers this transaction to be an excellent opportunity for our shareholders, as well as our customers,” said Jeffrey H. Noblin, Citizens National president and chief executive officer.

“We believe our shareholders will benefit from ownership in a growing financial institution whose stock enjoys added liquidity, which comes from trading on a more accessible exchange. We also believe our customers will realize the advantages inherent with a larger bank.”

Under the terms of the merger agreement, Citizens National shareholders will receive 0.1041 shares of Old Point common stock and $2.19 in cash for each outstanding share of Citizens National common stock.

Citizens National Bank, headquartered in Windsor, serves its customers and communities through one full-service location. The bank had assets of approximately $48 million, loans of approximately $41 million and deposits of approximately $40 million as of June 30, 2017.

Following the merger, Old Point is expected to have approximately $1.0 billion in assets with 19 branches located in the Hampton Roads localities of Hampton, Newport News, Norfolk, Virginia Beach, Chesapeake, Williamsburg, York County and Isle of Wight County.