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Dive Brief:
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Suffolk, Virginia-based TowneBank has agreed to acquire in-state peer Hampton-based Old Point Financial in a deal valued at roughly $203 million, the companies announced Thursday.
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The deal will expand TowneBank’s footprint into the Hampton Roads metro area by adding 13 Old Point Financial branches to TowneBank’s 62.
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The deal – expected to close in the second half of 2025 – received approvals from the boards of both companies but awaits regulatory and Old Point shareholders’ approvals.
Dive Insight:
TowneBank’s latest deal comes close on the heels of another acquisition the lender closed earlier this week. On Apr. 1, TowneBank completed its purchase of Village Bank and Trust Financial Corp., a deal announced in March which received regulatory approval last month. The merger aimed to increase TowneBank’s presence in the Richmond metro.
Following TowneBank's recently completed acquisition of Village Bank and Trust and the proposed acquisition of Old Point, the combined entity would have total assets of $19.5 billion, loans of $13.1 billion and total deposits of $16.3 billion.
The $17.25 billion-asset TowneBank expects the acquisition to be approximately 10% accretive to earnings per share once cost savings are fully implemented. TowneBank was founded in 1999 and serves Hampton Roads and central Virginia, as well as northeastern and central North Carolina, and counts itself as one of the largest banks headquartered in the state.
“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,” G. Robert Aston Jr., executive chairman of TowneBank, said in a statement.
Old Point Financial Corp. is the holding company of The Old Point National Bank of Phoebus and Old Point Trust & Financial Services.
“Great competition builds better companies and TowneBank has raised the bar high – to the benefit of Old Point,” Robert F. Shuford Jr., chairman and CEO of Old Point, said in a statement. “Under Bob Aston’s leadership, they have built an incredible franchise.”
Under the agreement, Old Point shareholders need to select either option: receive $41 in cash or 1.1400 shares of TowneBank common stock for each share of Old Point outstanding common stock, as long as the total stock consideration issued represents between 50% and 60% of the total consideration, according to the press release.