TowneBank and Old Point Financial Set to Merge: Key Details
Merger Announcement Between TowneBank and Old Point Financial
TowneBank and Old Point Financial Corporation recently announced a significant development in their ongoing relationship. The two financial institutions have obtained all necessary regulatory approvals from relevant authorities, including the Federal Deposit Insurance Corporation (FDIC). The merger is anticipated to conclude around September 1, 2025, provided all customary closing conditions are fulfilled.
Election Procedure for Stockholders
For shareholders of Old Point common stock, an important election deadline has been set. Shareholders are encouraged to choose their preferred form of consideration by the election materials previously distributed. This election must be submitted by 5:00 p.m. Eastern Time on August 26, 2025, unless an extension is granted.
Options for Stockholders
As part of the election process, Old Point common stockholders have three options to choose from regarding their shares. They may opt for $41.00 in cash per share, 1.14 shares of TowneBank common stock with additional cash for any fractional shares, or a combination of both cash and stock. Each option is subject to applicable taxes and the allocation of shares will follow specific proration procedures to ensure fair treatment for all stakeholders involved.
Steps for Making a Valid Election
To ensure a valid election, shareholders must submit required documents to Computershare Trust Company, N.A., the designated exchange agent for this transaction. Any stockholder using a broker or any other intermediary should consult with them for guidance on the process. Understanding the election materials, including the proxy statement and voting instructions, is crucial before making any decisions.
Potential Consequences of Not Electing
Stockholders who do not submit their election by the deadline will find themselves with limited say in the form their consideration will take. Their shares may be converted into a combination of cash and TowneBank stock, depending on the elections made by other shareholders. Therefore, it is vital to act timely in ensuring your choice is represented.
Contact Information for Assistance
For any queries related to the election process or for up-to-date information regarding the merger timeline, Old Point security holders can reach out to Georgeson Inc., the information agent at (877) 354-1902. They are available from 9 a.m. to 11 p.m. ET on weekdays and Saturdays from 12 noon to 6 p.m. ET.
About TowneBank
Founded in 1999, TowneBank has established itself as a reliable institution focused on building relationships and enhancing community welfare. Operating over 55 branches across various regions, TowneBank offers competitive business and personal banking solutions, along with wealth management and insurance products. As of mid-2025, the bank has total assets amounting to approximately $18.26 billion, marking its status as one of the largest banks in Virginia.
About Old Point Financial Corporation
Old Point Financial Corporation, the parent company of The Old Point National Bank, is dedicated to providing comprehensive financial services to individuals and businesses. With 13 branch locations in the Hampton Roads area, they offer a variety of services including mortgage and insurance products, investment services, and financial planning. Their commitment to the community and their customers reflects their comprehensive range of banking solutions.
Frequently Asked Questions
1. What is the expected closing date for the TowneBank and Old Point merger?
The merger is anticipated to close on or about September 1, 2025, subject to the satisfaction of customary closing conditions.
2. What options do Old Point shareholders have for their shares?
Shareholders can choose to receive $41.00 in cash, 1.14 shares of TowneBank stock with cash for any fractional shares, or a combination of both cash and stock.
3. What should shareholders do if they have questions about the election procedure?
Shareholders can contact Georgeson Inc. at (877) 354-1902 for assistance and information related to the election process.
4. How can shareholders ensure their election is valid?
Shareholders must complete the election form and submit it along with any required documentation to Computershare Trust Company, N.A., before the election deadline.
5. What happens if a shareholder does not make an election by the deadline?
If no election is made by the deadline, the shareholder may receive a combination of cash and TowneBank stock determined by the valid elections of other shareholders.
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