The stock market saw a significant rise in Old Point Financial Corporation (NASDAQ: OPOF) shares, which as of today’s last check had risen 22.37% to $36.60. The noteworthy increase comes after OPOF and TowneBank announced a final merger agreement, a calculated move that may drastically alter the financial scene in the Hampton Roads metropolitan area.
Strengthened Market Position
Old Point Financial and its banking subsidiary The Old Point National Bank of Phoebus (OPNB) will be acquired by TowneBank. Through the integration of a reputable core deposit franchise with more than a century of history, this deal is anticipated to strengthen TowneBank’s position in the area.
Following its recent acquisition of Village Bank and Trust Financial Corp., TowneBank is expanding its business. Based on the December 31, 2024 data of both companies, the merged company will have $19.5 billion in total assets, $13.1 billion in loans, and $16.3 billion in deposits.
Combination to Establish a Sturdy Financial Organization
Old Point Financial has a long history of being a cornerstone of stability and trust in the Hampton, Virginia, region. By combining two prestigious financial institutions, the merger seeks to create a strong deposit base and high credit quality while releasing financial synergies that should lead to improved performance.
The transaction gives Old Point Financial stockholders the choice of receiving 1.1400 shares of TowneBank common stock per OPOF share, or $41.00 in cash. The entire deal is worth around $203 million, and between 50% and 60% of the acquisition price is made up of stock consideration.
Regulatory Clearances and Anticipated Closing Date
The executive teams of the two banks conducted thorough due diligence on the deal, and their boards of directors approved it. A major turning point in the region’s banking industry, the merger is expected to be completed in the second half of 2025, subject to routine regulatory clearances and closing conditions.
