TowneBank (TOWN) entered a merger agreement on April 3, 2025, to acquire Old Point Financial Corporation (OPOF) in a deal valued at about $203 million.
Under the terms of the agreement, shareholders of Old Point will elect to receive either $41 in cash or 1.14 shares of TowneBank common stock for each share of Old Point outstanding common stock. The cash consideration represents a premium of 37.08% from the stock’s last close.
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.
Old Point is a Hampton, Virginia-based financial services company that provides banking, mortgage, insurance, and wealth management services to individuals and businesses through its subsidiary, The Old Point National Bank of Phoebus, and other divisions.
TowneBank, founded in 1999 and headquartered in Portsmouth, Virginia, offers a wide range of retail and commercial banking services, along with insurance and real estate solutions, across over 50 locations in Virginia and North Carolina.
Two days ago, TowneBank completed the acquisition of Village Bank and Trust Financial (VBFC), another Virginia-based bank, for $120 million. The shareholders of Village Bank received $80.25 per share in cash from TowneBank, a premium of 48.61% from the stock’s last close before the deal was announced in September last year.
The proposed transaction with Old Point will strengthen TowneBank’s presence in the Hampton Roads MSA, which includes Norfolk, Virginia Beach, Chesapeake, Newport News, and Hampton.
After acquiring Village Bank and the proposed acquisition of Old Point, TowneBank’s total assets would reach $19.5 billion, with $13.1 billion in loans and $16.3 billion in deposits as of December 31, 2024. The bank expects this deal to increase earnings per share by about 10%.
The deal is expected to close in the second half of 2025.
Keefe, Bruyette & Woods, a Stifel company, served as financial advisor, while Troutman Pepper Locke provided legal counsel to Old Point. Piper Sandler advised TowneBank on financial matters, with legal counsel from Wachtell, Lipton, Rosen & Katz and Williams Mullen.
TowneBank is paying 1.64 times the book value for Old Point.
Detailed information about this merger and acquisition transaction can be found on the Deal Metrics page.
Deal Metrics for the acquisition of Old Point Financial Corporation (OPOF) by TowneBank (TOWN)
The Deal Metrics page includes:
– A spread history chart of the merger from announcement through completion or failure.
– Timeline of the merger including HSR period, regulatory approvals, shareholder votes etc.
– Relevant news and SEC filings.
– A history of deal updates.
– And much more.
Disclaimer: This article does not constitute investment advice. Please do your own research before investing in any securities mentioned in this article. We do not guarantee the accuracy or completeness of the information or data provided in this article.
Editor’s Note: Baranjot Kaur contributed to this article