TowneBank and Old Point Financial Merger Gets Regulatory Approval

Old Point Financial has received regulatory approval to merge with TowneBank, expected to close on September 1, 2025. The merger is expected to enhance TowneBank's market presence and service offerings. Old Point Financial has a strong technical indicators and positive corporate events, but high valuation and legal challenges offset these positives. The company's financial performance is solid, but there is room for improvement in cash flow consistency and shareholder returns.

Suffolk, Va., and Hampton, Va., Aug. 14, 2025 — Hampton Roads-based TowneBank (NASDAQ: TOWN) and Old Point Financial Corporation (NASDAQCM: OPOF), the parent company of The Old Point National Bank of Phoebus (NASDAQCM: OPOF), have announced that they have received regulatory approval from the Federal Deposit Insurance Corporation (FDIC) and the Bureau of Financial Institutions of the Virginia State Corporation Commission to complete the proposed merger of Old Point and Old Point National Bank with TowneBank. The merger is expected to close on or about September 1, 2025, subject to the satisfaction of customary closing conditions [1].

The merger is expected to enhance TowneBank's market presence and service offerings, with Old Point Financial Corporation contributing its strong technical indicators and positive corporate events. However, high valuation and legal challenges offset these positives. The company's financial performance is solid, but there is room for improvement in cash flow consistency and shareholder returns [2].

The deadline for holders of Old Point common stock and Old Point restricted stock awards to elect their preferred form of consideration by completing the election materials previously sent to such holders will be 5:00 p.m., Eastern Time, on August 26, 2025, unless extended. Election Details As previously announced, holders of Old Point common stock and Old Point restricted stock awards may elect to receive, for each of their shares of Old Point common stock, either (i) $41.00 in cash, (ii) 1.14 shares of TowneBank common stock, plus cash in lieu of fractional shares, or (iii) a combination of cash and shares of TowneBank common stock, in each case, subject to applicable withholding taxes and without interest [1].

References:
[1] https://investor.townebank.com/news/news-details/2025/TowneBank-and-Old-Point-Financial-Corporation-Announce-Expected-Closing-Date-and-Election-Deadline-for-Merger/default.aspx
[2] https://investor.townebank.com/news/news-details/2025/TowneBank-and-Old-Point-Financial-Corporation-Announce-Expected-Closing-Date-and-Election-Deadline-for-Merger/default.aspx