TowneBank to close on $203M Old Point deal Sept. 1

Suffolk-based TowneBank expects to close Sept. 1 on its $203 million acquisition of Hampton-based Old Point National Bank of Phoebus and its parent company, Old Point Financial Corp., according to a Thursday announcement.

The deal, which will firmly cement TowneBank’s position as the bank with the most market share in Hampton Roads, has received regulatory approval from the Federal Deposit Insurance Corp. and the Virginia State Corporation Commission’s Bureau of Financial Institutions.

Following the closing of TowneBank’s Old Point acquisition, the combined company would have total assets of $19.5 billion, loans of $13.1 billion and deposits of $16.3 billion based on financial information reported as of Dec. 31, 2024.

Under the terms of the merger , Old Point shareholders can elect to receive either $41 in cash or 1.14 shares of TowneBank common stock for each share of Old Point outstanding common stock. Shareholders can elect cash or a stock consideration, as long as the total stock consideration issued represents between 50% and 60% of the total consideration. Elections must be made by 5 p.m. on Aug. 26.

Old Point has 13 bank branches, three commercial lending offices and three wealth management offices throughout the Hampton Roads area, as well as a commercial lending office in the Richmond area. As of the end of March, Old Point reported $1.45 billion in assets, $1 billion in loans and $1.26 billion in total deposits.

TowneBank announced the completion of its acquisition of Midlothian’s Village Bank and its parent company Village Bank and Trust Financial in April. That deal was valued at about $120 million.

Minnesota-based Piper Sandler & Co. served as the financial adviser for the Old Point acquisition deal while New York-based Wachtell, Lipton, Rosen & Katz served as lead legal counsel, with Richmond’s Williams Mullen as local counsel to TowneBank in the transaction. New York-based Keefe, Bruyette & Woods, a Stifel Company, served as the financial adviser to Old Point, with Pennsylvania-based Troutman Pepper Locke serving as legal counsel.

Acquisition-related expenses for TowneBank totaled $18.74 million in the second quarter, according to financial filings.

Founded in 1999, TowneBank has 58 locations across Central and Eastern Virginia and North Carolina. It had total assets of $17.25 billion as of Dec. 31, 2024.