TowneBank and Old Point Financial receive regulatory approvals for merger

SUFFOLK/HAMPTON, Va. - TowneBank (NASDAQ:TOWN) and Old Point Financial Corporation (NASDAQCM:OPOF) announced Thursday they have received all necessary regulatory approvals for their proposed merger, with the transaction expected to close around September 1, 2025. Old Point Financial, currently trading near its 52-week high of $42.00, has demonstrated remarkable performance with a 135% return over the past year.

The Federal Deposit Insurance Corporation and the Bureau of Financial Institutions of the Virginia State Corporation Commission have granted approval for the merger of Old Point and its subsidiary, The Old Point National Bank of Phoebus, with TowneBank.

Old Point shareholders have until 5:00 p.m. Eastern Time on August 26, 2025, to elect their preferred form of consideration. Shareholders may choose to receive $41.00 in cash, 1.14 shares of TowneBank common stock, or a combination of both for each share of Old Point common stock they hold.

The merger agreement includes allocation and proration procedures designed to ensure that between 50% and 60% of Old Point shares will receive stock consideration, with the remainder receiving cash consideration.

Shareholders who do not make a valid election by the deadline will have no control over the type of consideration they receive, which will be determined by the elections of other shareholders and the proration procedures outlined in the merger agreement.

The combination will expand TowneBank’s presence in the Hampton Roads region of Virginia, where both banks are headquartered. TowneBank currently operates over 55 banking offices throughout Hampton Roads, Central Virginia, and parts of North Carolina, with total assets of $18.26 billion as of June 30, 2025.

Old Point Financial operates 13 branch offices in the Hampton Roads region through its subsidiaries, The Old Point National Bank of Phoebus and Old Point Trust & Financial Services.

The announcement comes following the April 2, 2025 merger agreement between the two Virginia-based financial institutions, according to the press release statement.

In other recent news, Old Point Financial Corporation announced that its shareholders have approved a merger with TowneBank. This merger also involves Old Point National Bank of Phoebus and is subject to regulatory approvals and customary closing conditions. The completion of the transaction is anticipated in the second half of 2025. These recent developments mark a significant step for the company as it moves toward finalizing the merger. Investors will be watching closely as the regulatory process unfolds. The merger’s progress and potential impact on the company’s operations remain key areas of interest.

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