TowneBank to acquire Old Point in $203M deal

Suffolk-based TowneBank announced plans Thursday to acquire Old Point Financial, parent company of The Old Point National Bank of Phoebus, in a deal valued at $203 million.

The merger, which is expected to enhance TowneBank’s position as the bank with the most market share in Hampton Roads, follows the April 1 completion of TowneBaTowneBank’s $120 million acquisition of Midlothian’s Village Bank and its parent company, Village Bank and Trust Financial.

The combined bank is expected to have total assets of $19.5 billion, loans of $13.1 billion and deposits of $16.3 billion, based on financial data as of Dec. 31, 2024.

The agreement was approved by the boards of directors of both companies and the transaction is expected to close in the second half of the year. The transaction is subject to customary conditions, including regulatory approval, as well as the approval of Old Point’s shareholders.

“We are excited to partner with Old Point and welcome its talented team into our TowneBank family,” TowneBank Executive Chairman G. Robert Aston Jr. said in a statement. “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 … [who have] 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 Chairman, President and CEO Robert F. Shuford Jr. said in a statement that great competition builds better companies and “TowneBank has raised the bar high — to the benefit of Old Point.”

Shuford added, “Under Bob Aston’s leadership, they have built an incredible franchise. Together, we will bring expanded relationships and services to our communities, enhanced opportunities for our employees, and significant value for our shareholders. We are excited about this partnership and the opportunity to bring together the Old Point and TowneBank families.”

Under the terms of the definitive agreement and merger plan, shareholders of Old Point 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, and Old Point shareholders can elect cash or stock consideration so long as the total stock consideration issued represents between 50% and 60% of the total consideration paid.

TowneBank says it expects the acquisition to be approximately 10% accretive to earnings per share with fully phased-in cost savings on a generally accepted accounting principles basis.

Founded in 1999, TowneBank today operates over 50 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina. It has total assets of $17.25 billion as of Dec. 31, 2024, and is one of the largest banks headquartered in Virginia.

Headquartered in Hampton, Old Point Financial is the holding company of The Old Point National Bank of Phoebus and Old Point Trust & Financial Services. The bank serves individual and commercial customers through its 13 branch offices located in the Hampton Roads region and offers a range of retail and commercial financial services.