Exciting Merger Announcement between TowneBank and Old Point
Recently, two prominent banks in the Hampton Roads area have taken a significant step towards a merger that promises to enhance financial services available to their customers. TowneBank and Old Point Financial Corporation have received all necessary regulatory approvals for their merger and are set to finalize the integration soon. This strategic alliance is expected to close shortly, with the anticipated date marking a new chapter for both institutions.
Regulatory Approval and Closing Timeline
The Federal Deposit Insurance Corporation and the Bureau of Financial Institutions in Virginia have granted the necessary approvals, clearing the path for the merger. This is a momentous occasion for both banks, combining their strengths to offer even better services. The expected closing date for the merger is set for approximately September 1, which reflects the culmination of extensive collaboration between both parties over the past months.
Key Election Details for Stock Holders
For those holding stock in Old Point, it’s important to note that the election deadline for preferred consideration is approaching. Shareholders must submit their election materials by 5:00 p.m., Eastern Time, on August 26. This deadline is crucial for determining how shareholders will exchange their stocks during this transition.
Election Options Available for Shareholders
Shareholders of Old Point have multiple options for consideration of their shares during the merger process. They can choose to receive either:
(i) A cash payment of $41.00 per share,
(ii) 1.14 shares of TowneBank common stock (with cash provided for any fractional shares), or
(iii) A mix of both cash and TowneBank stock. This flexibility allows shareholders to choose the option that best suits their financial strategies.
Instructions for Making Elections
To ensure that shareholders make valid elections, it is essential to adhere to the guidelines set forth in the election materials. A properly completed election form, along with any necessary stock certificates, must be submitted before the election deadline. For those who hold their shares through intermediaries, following the specific instructions provided by their brokers or banks is recommended.
The Significance of This Merger
The merger between TowneBank and Old Point Financial Corporation marks a substantial shift in the banking landscape within their operational regions. With TowneBank leading the charge, the combination is expected to deliver enhanced product offerings, better customer service, and improved efficiency, benefiting existing and future customers.
Expert Teams Behind the Merge
Both banks emphasize their commitment to maintaining relationships and delivering superior services. With seasoned professionals guiding this partnership, customers can anticipate a seamless transition and ongoing support from familiar teams. The merger aims not only to combine resources but also to enhance the banking experience through innovation.
About TowneBank and Old Point Financial Corporation
Established in 1999, TowneBank has grown to become one of Virginia's largest banks, with assets totaling over $18 billion. The bank has always focused on relationship-building and providing a full range of banking services designed to enrich the lives of its community members.
In comparison, Old Point Financial Corporation has a rich history serving its communities with comprehensive banking services, including mortgage products and wealth management. By merging, these two institutions will enhance their offerings and provide a wider array of financial solutions for their clients.
Contact Information and Inquiries
For any inquiries or further information regarding the merger, interested parties can reach out to their respective representatives:
G. Robert Aston, Jr., Executive Chairman, TowneBank, 757-638-6780
William I. Foster III, Chief Executive Officer, TowneBank, 757-417-6482
Robert F. Shuford, Jr., Chairman & CEO, Old Point Financial Corporation, 757-728-1887
Frequently Asked Questions
What is the expected closing date for the merger?
The merger between TowneBank and Old Point is expected to close on approximately September 1.
What options do Old Point shareholders have for their stock?
Old Point shareholders can choose to receive cash, TowneBank stock, or a combination of both for their shares.
How can shareholders make their elections?
Shareholders must complete and submit the election form along with required documents by the deadline of 5:00 p.m. on August 26.
What benefits does the merger bring to customers?
The merger aims to enhance product offerings, improve customer service, and provide a broader range of financial solutions.
Who should shareholders contact for more information?
Shareholders can contact Georgeson Inc. at (877) 354-1902 for questions about the election process.
