Virginia’s TowneBank has agreed to acquire regional peer Old Point Financial, the parent of The Old Point National Bank of Phoebus (OPNB), in a cash-stock deal valued at nearly $203m.
Under the agreement, Old Point shareholders can opt for either $41.00 in cash or 1.1400 shares of TowneBank common stock for each share held.
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TowneBank anticipates the acquisition and subsequent merger with Virginia-based Old Point to be approximately 10% accretive to its earnings per share.
This move is set to enhance TowneBank’s presence in the Hampton Roads Metropolitan Statistical Area (MSA), adding a “high-quality core deposit franchise” to its portfolio.
The acquisition is pending regulatory and shareholders’ approvals, with completion expected in the second half of 2025.
Upon completion of this transaction and including TowneBank’s recent purchase of Village Bank and Trust Financial, the combined entity is projected to have total assets of $19.5bn, loans of $13.1bn, and deposits of $16.3bn as of 31 December 2024.
Both TowneBank and Old Point completed due diligence in connection with the deal, which has secured the green light from the companies’ boards.
TowneBank secured financial advice from Piper Sandler & Co, with Wachtell, Lipton, Rosen & Katz serving as lead legal counsel and Williams Mullen as local counsel.
For Old Point, Keefe, Bruyette & Woods, A Stifel Company, offered financial advice, while Troutman Pepper Locke provided legal counsel.
TowneBank executive chairman G. Robert Aston, Jr. said: “We are excited to partner with Old Point and welcome its talented team into our TowneBank family.”
“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.”
Old Point Financial Corporation chairman, president and CEO Robert F. Shuford, Jr. added: “Together, we will bring expanded relationships and services to our communities, enhanced opportunities for our employees, and significant value for our shareholders.”
