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TowneBank (NASDAQ: TOWN) and Old Point Financial Corporation (NASDAQCM: OPOF) (“Old Point”), the parent company of The Old Point National Bank of Phoebus (“OPNB”), have jointly announced the signing of an agreement for TowneBank to acquire Old Point and OPNB.

According to the joint press release on April 3, 2025, the proposed transaction aims to enhance TowneBank’s position in the Hampton Roads MSA through the addition of Old Point’s “high-quality core deposit franchise.” The press release states that pro forma for TowneBank’s recent acquisition of Village Bank and Trust Financial Corp. and 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, 2024.
TowneBank expects the acquisition to increase earnings per share by about 10% on a GAAP basis once fully realized cost savings are implemented.

G. Robert Aston, Jr., Executive Chairman of TowneBank, expressed his excitement about partnering with Old Point and welcomed their team, noting Old Point’s “legendary status” in the community, especially in Hampton, where it was founded over a century ago.

“We are excited to partner with Old Point and welcome its talented team into our TowneBank family,” Aston, Jr. said in the release. “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. 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.”

Robert F. Shuford, Jr., Chairman, President and Chief Executive Officer of Old Point Financial Corporation, commented that TowneBank has “raised the bar high – to the benefit of Old Point” and is excited about the partnership’s potential to bring expanded services and value.

Under the terms of the agreement detailed in the press release, Old Point shareholders can elect to receive either $41.00 in cash or 1.1400 shares of TowneBank common stock for each outstanding Old Point share. The total stock consideration issued will represent between 50% and 60% of the total consideration paid. The total transaction value is approximately $203 million. The boards have approved the definitive agreement of directors of both companies, and the transaction is expected to close in the second half of 2025, subject to customary conditions, including regulatory and Old Point’s shareholder approval.