TowneBank in Suffolk, Va., has agreed to buy Old Point Financial in Hampton, Va.
The $18 billion-asset TowneBank said in a press release that it will pay $203 million in cash and stock for the $1.5 billion-asset Old Point. The deal, which is expected to close in the second half of this year, priced Old Point at 180% of its tangible book value.
“Old Point has legendary status here in our community and most especially, in Hampton … where it was founded over 100 years ago,” G. Robert Aston, Jr., TowneBank’s executive chairman, said in the release.
“I have the deepest respect for the Shuford family that has guided Old Point throughout the years with the highest of character and unwavering integrity,” Aston added. “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.”
The deal should be 10% accretive to TownBank’s 2026 earnings per share. TowneBank expects 6% dilution to its tangible book vale.
TowneBank, which just closed on the purchase of Village Bank and Trust Financial, plans to cut about 45% of Old Point’s annual noninterest expense largely due to significant branch overlap. It expects to incur $30 million in merger-related charges.
Piper Sandler; Wachtell, Lipton, Rosen & Katz; and Williams Mullen advised TowneBank. Keefe, Bruyette & Woods and Troutman Pepper Locke advised Old Point.