TowneBank Announces Completion of Old Point Financial Corporation Merger

Rhea-AI Summary

TowneBank (Nasdaq: TOWN) has completed its merger with Old Point Financial Corporation, including its subsidiaries Old Point National Bank and Old Point Wealth Management. The strategic merger, effective September 1, 2025, strengthens TowneBank's presence in the Hampton Roads MSA market.

Old Point National Bank locations will temporarily operate as "Old Point National Bank, a Division of TowneBank" until February 2026, when core systems integration is scheduled. Former Old Point CEO Robert F. Shuford, Jr. will join as senior executive vice president and serve as chairman of the TowneBank Peninsula board starting January 2026.

Positive

• Strategic expansion in Hampton Roads MSA market
• Acquisition of high-quality core deposit franchise
• Retention of key leadership with Robert F. Shuford Jr. joining TowneBank's executive team
• Addition of wealth management services through Old Point Wealth Management

Negative

• Potential integration risks during systems conversion planned for February 2026
• Temporary operational complexity with dual branding until full integration

Insights

Financial Services M&A Analyst

TowneBank strengthens Hampton Roads market position through Old Point acquisition, gaining deposits and wealth management capabilities.

TowneBank has successfully completed its strategic merger with Old Point Financial Corporation, bringing Old Point National Bank and Old Point Wealth Management under the TowneBank umbrella. This transaction significantly strengthens TowneBank's presence in the Hampton Roads Metropolitan Statistical Area by acquiring what they describe as a "high-quality core deposit franchise."

The integration plan reveals a thoughtful approach to customer retention and operational efficiency. Old Point National Bank locations will temporarily operate under the "Old Point National Bank, a Division of TowneBank" branding until February 2026, when full systems integration is scheduled. This phased approach likely aims to minimize customer disruption while allowing for technical alignment.

The acquisition provides TowneBank with three strategic advantages: expanded geographic footprint in the Hampton Roads region, additional core deposits that typically represent stable, lower-cost funding, and complementary wealth management capabilities through Old Point Wealth Management.

Leadership continuity appears to be a priority, with Old Point's former chairman, president and CEO Robert F. Shuford, Jr. joining TowneBank as senior executive vice president and future chairman of the TowneBank Peninsula board. This suggests TowneBank is working to preserve key relationships and institutional knowledge from the acquired organization.

While financial terms weren't disclosed in this announcement, this transaction represents a significant strategic move for TowneBank to consolidate its regional banking position through inorganic growth.

SUFFOLK, Va., Sept. 02, 2025 (GLOBE NEWSWIRE) -- TowneBank (Nasdaq: TOWN) announced today the completion of its merger with Old Point Financial Corporation (“Old Point”), the parent company of The Old Point National Bank of Phoebus (“Old Point National Bank”) and Old Point Trust & Financial Services, N.A. (“Old Point Wealth Management”). The merger, which included Old Point National Bank’s merger into TowneBank, enhances TowneBank’s position in the Hampton Roads MSA with the addition of a high-quality core deposit franchise.

Following the merger, which was effective on September 1, 2025, Old Point National Bank locations will operate as “Old Point National Bank, a Division of TowneBank” until February 2026, when the core systems and operations of Old Point National Bank are scheduled to be converted into those of TowneBank. Old Point Wealth Management will continue to offer its products and services as an addition to the TowneBank family of companies.

“We are honored to welcome Old Point to the Towne family,” said TowneBank executive chairman G. Robert Aston, Jr., “and look forward to upholding the banking legacy of the Shuford family in Hampton and beyond.”

In connection with the merger, former Old Point chairman, president and chief executive officer Robert F. Shuford, Jr., was appointed as a senior executive vice president and will serve as chairman of the TowneBank Peninsula board of directors beginning January 1, 2026. Shuford added, “The legal close of our merger marks the beginning of an exciting new chapter for Old Point and TowneBank. This partnership brings together two institutions deeply committed to serving our communities, employees, and shareholders. We look forward to building a stronger future together.”

About TowneBank:

Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a focus of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.

Today, TowneBank operates over 50 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its affiliated companies that include Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices RW Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $18.26 billion as of June 30, 2025, TowneBank is one of the largest banks headquartered in Virginia.

For more information, contact:
G. Robert Aston, Jr., Executive Chairman, 757-638-6780
William I. Foster III, Chief Executive Officer, 757-417-6482

Investor contact:
William B. Littreal, Chief Financial Officer, 757-638-6813

FAQ

When did TowneBank complete its merger with Old Point Financial Corporation?

TowneBank completed its merger with Old Point Financial Corporation on September 1, 2025.

What will happen to Old Point National Bank branches after the TowneBank merger?

Old Point National Bank locations will operate as 'Old Point National Bank, a Division of TowneBank' until February 2026, when core systems and operations will be converted to TowneBank's systems.

Who will lead the merged TowneBank-Old Point operations in the Peninsula region?

Robert F. Shuford, Jr., former Old Point chairman and CEO, will serve as senior executive vice president and chairman of the TowneBank Peninsula board starting January 1, 2026.

What strategic benefits does the Old Point merger bring to TowneBank (TOWN)?

The merger enhances TowneBank's position in the Hampton Roads MSA by adding a high-quality core deposit franchise and wealth management services through Old Point Wealth Management.

When will the full integration of Old Point into TowneBank (TOWN) be completed?

The full integration, including core systems and operations conversion, is scheduled to be completed in February 2026.