Old Point Financial Corporation (OPOF): History, Ownership, Mission, How It Works & Makes Money

As a seasoned financial analyst, when you look at Old Point Financial Corporation (OPOF), are you seeing a standalone community bank or a strategic acquisition target that just realized a massive payout? The truth is, the company, which reported approximately $1.4 billion in total assets as of June 30, 2025, is now a division of TowneBank, following a definitive merger agreement valued at roughly $203 million, which closed in September 2025. This historic move fundamentally changes the investment thesis, but it doesn't erase the century-long history of a Virginia-based institution that built its business on interest income and a 3.70% net interest margin in Q2 2025. So, how did a bank founded in 1923 manage its mission of community service while defintely maximizing shareholder value in its final year?

Old Point Financial Corporation (OPOF) History

You want to understand the foundation of Old Point Financial Corporation (OPOF) to map its current strategic position, and the direct takeaway is this: the company's nearly century-long history of community banking culminated in a major strategic pivot in 2025, transforming it into a division of a larger regional player, TowneBank. The story is one of steady, local growth that ended with a significant consolidation move, a common trend in the mid-market banking sector right now.

To be fair, the company's evolution from a tiny operation in a confectionary store to a major regional bank holding company is a testament to its original, community-focused model. That model, however, eventually hit a scale ceiling, leading to the merger that defines its trajectory for the next decade. Here's the quick math on its origin and growth.

Given Company's Founding Timeline

Year established

The institution was officially chartered in 1922, but the bank opened for business in January 1923.

Original location

The bank began operations in the Phoebus section of Hampton, Virginia, initially working from a counter inside Cooper's Confectionary store. The choice of location, Phoebus, was deliberate, serving the financial needs of that specific community.

Founding team members

Old Point National Bank was founded by a group of community leaders, specifically identified as a local doctor, a seafood dealer, and a merchant. They named the bank after the Old Point Comfort lighthouse, symbolizing a commitment to being a steady, trusted resource.

Initial capital/funding

The initial capital funding for the bank was a modest but significant sum for the time: $50,000. This seed capital allowed the original institution, The Bank of Phoebus, to start addressing the financial needs of its local community.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The most defintely transformative moment in Old Point Financial Corporation's history is its merger with TowneBank, which was completed on September 1, 2025. This was not a minor acquisition; it fundamentally changed the company's structure and market position after over a century of independent operation. The strategic rationale was clear: combining Old Point's high-quality core deposit franchise with TowneBank's expansive resources.

This single decision immediately shifted the scale of the combined entity. Pro forma for TowneBank's recent acquisitions, including Old Point, the new company's total assets stood at approximately $19.5 billion, with loans of $13.1 billion, and deposits of $16.3 billion as of December 31, 2024. That's a massive jump in market power.

The merger had several critical implications for the company's trajectory:

• Ended OPOF's Independence: Old Point Financial Corporation ceased to exist as an independent, publicly traded entity, with its stock delisted from Nasdaq on September 2, 2025.
• Preserved Brand & Legacy: The Old Point National Bank locations will continue to operate under the name Old Point National Bank, a Division of TowneBank, until the core system conversion in early 2026.
• Leadership Transition: Former Old Point CEO Robert F. Shuford, Jr., was appointed as a senior executive vice president and will chair the TowneBank Peninsula board, ensuring local leadership continuity.

This move is a strong signal to investors about the value of a deep, local deposit base in an increasingly competitive financial landscape. If you are looking to understand the full scope of this new entity, you should be Exploring Old Point Financial Corporation (OPOF) Investor Profile: Who's Buying and Why?

Old Point Financial Corporation (OPOF) Ownership Structure

The ownership structure of Old Point Financial Corporation underwent a fundamental change in 2025, moving from an independent, publicly-traded company to a division of a larger financial institution. The company's independent existence, and thus its separate shareholder base, ceased on September 1, 2025, when it completed its merger with TowneBank.

Old Point Financial Corporation's Current Status

As of November 2025, Old Point Financial Corporation (OPOF) is no longer a standalone public company. It completed its merger with TowneBank on September 1, 2025, with TowneBank as the surviving entity. The former OPOF common stock, which traded on the Nasdaq Capital Market, was delisted effective September 3, 2025, and its shares were converted into the right to receive either $41.00 in cash or 1.14 shares of TowneBank common stock, subject to proration. This transaction effectively dissolved the independent Old Point shareholder base, consolidating control under TowneBank's governance structure.

To be fair, the Old Point National Bank locations will operate as a division of TowneBank until systems are fully converted, which is expected by February 2026. This merger, valued at approximately $214.8 million based on its market capitalization in mid-2025, was a significant event for the Hampton Roads financial market. You can get a deeper look at the pre-merger fundamentals here: Breaking Down Old Point Financial Corporation (OPOF) Financial Health: Key Insights for Investors.

Old Point Financial Corporation's Ownership Breakdown

The table below reflects the final beneficial ownership breakdown of Old Point Financial Corporation just prior to the merger announcement in mid-2025. This structure is crucial because it shows which stakeholder groups held the power to approve the merger, which shareholders did on July 2, 2025.

Here's the quick math: Institutional investors and insiders controlled nearly two-thirds of the stock, at about 64.71%. This concentration of ownership meant that institutional support was defintely key to securing the shareholder approval needed for the TowneBank merger.

Old Point Financial Corporation's Leadership

Following the merger's completion on September 1, 2025, all directors and executive officers of Old Point Financial Corporation ceased serving in their roles, as the company ceased to exist as a separate legal entity. The former leadership team is no longer steering an independent Old Point strategy.

• Former Chairman, President, and CEO, Robert F. Shuford, Jr., transitioned to a new role as a Senior Executive Vice President of TowneBank.
• Shuford will also serve as Chairman of the TowneBank Peninsula board of directors, a role that begins on January 1, 2026, ensuring some local leadership continuity.
• The former Chief Financial Officer role, most recently held on an interim basis by Cathy W. Liles as of July 2024, was absorbed into TowneBank's executive structure.

The key takeaway is this: the strategic direction for what was Old Point is now set by the executive team and board of directors of TowneBank.

Old Point Financial Corporation (OPOF) Mission and Values

Old Point Financial Corporation's core purpose centers on a balanced commitment to its local community, customers, employees, and shareholders, a principle now reinforced as a division of TowneBank. This deep-rooted, community-focused mission guided the company through its merger, which became effective on September 1, 2025.

You're looking for the cultural DNA of a financial institution, and honestly, Old Point Financial Corporation's is anchored in its Virginia community. Here's the quick math: the company reported net income of $2.2 million in the first quarter of 2025 and $1.2 million in the second quarter of 2025, showing their commitment to a fair profit while maintaining their service-first approach right up to the $203 million merger with TowneBank.

Old Point Financial Corporation's Core Purpose

The company's purpose goes beyond simple transactions, focusing instead on being a full partner in the economic health of the Hampton Roads and Richmond regions. Their founding values-local leadership, personal relationships, and unwavering support-are the bedrock of their operations, even as they integrate with a larger entity.

Official Mission Statement

The mission statement is clear, direct, and covers all key stakeholders, which is what you want to see in a community bank's charter. It's a simple, five-point contract with the people they serve. Excellent service is the hallmark of their business.

• Serve the financial needs of customers.
• Provide dependable, reasonably priced products.
• Be full partners in community growth and development.
• Value and reward employees' contributions.
• Return a fair profit to shareholders.

Vision Statement

While a formal, separate vision statement is not often published, Old Point Financial Corporation's founding narrative acts as its long-term vision (or guiding star, if you will). The company was named after the Old Point Comfort lighthouse back in 1923, symbolizing a commitment to being a steady, trusted resource through all economic conditions. That's a powerful, defintely intentional metaphor for a financial institution. For more on the market's reception of this stability, you should read Exploring Old Point Financial Corporation (OPOF) Investor Profile: Who's Buying and Why?

Old Point Financial Corporation Slogan/Tagline

The most current, actionable tagline reflects the post-merger reality, which is the immediate operating environment you need to map. As of September 1, 2025, the operating entity is officially branded to reflect its new structure.

• Old Point National Bank, a Division of TowneBank.

Old Point Financial Corporation (OPOF) How It Works

Old Point Financial Corporation, as a standalone entity, ceased to exist on September 1, 2025, following its merger with and into TowneBank, so what you are analyzing now is an integrated operation. As of November 2025, the former Old Point National Bank operates as a division of TowneBank, leveraging its deep local roots in the Hampton Roads and Richmond regions of Virginia while preparing for a full systems conversion scheduled for February 2026.

The core business model remains community-centric banking and wealth management, but now with the scale and expanded product set of a larger regional institution like TowneBank. The acquisition immediately added $961.35 million in loans and $1.21 billion in deposits to the combined company's balance sheet as of September 30, 2025. That's a serious injection of core funding.

Old Point Financial Corporation's Product/Service Portfolio

The former Old Point Financial Corporation's primary offerings continue to be delivered through its two main subsidiaries, Old Point National Bank and Old Point Wealth Management, now operating under the TowneBank umbrella. Old Point Wealth Management, for instance, continues to offer its services as a distinct part of the TowneBank family of companies.

Old Point Financial Corporation's Operational Framework

The operational framework as of November 2025 is a phased, dual-system approach designed to minimize customer disruption while maximizing the long-term cost synergies (expected to be approximately 10% accretive to TowneBank's earnings per share). You don't want to break the customer experience during a transition like this. The former Old Point National Bank branches retain their distinct branding and operate on their original core processing systems, but under TowneBank's management team.

• Dual-System Banking: Old Point customers still use their existing checks, debit cards, online banking, and loan payment methods; TowneBank locations do not yet have access to Old Point account data.
• ATM Network Integration: A quick win for customers: Old Point debit and ATM cards can be used surcharge-free at any Towne24 ATM, effective September 3, 2025.
• Core Systems Conversion: The full operational and system merger, where all accounts migrate to the TowneBank platform, is scheduled for February 2026. This is the defintely the riskiest part of any bank merger.
• Financial Contribution: The acquired assets contributed to TowneBank's total assets reaching $19.68 billion by September 30, 2025. For context, Old Point Financial Corporation's total assets were approximately $1.4 billion at June 30, 2025, just before the merger.

Old Point Financial Corporation's Strategic Advantages

The value proposition of the former Old Point Financial Corporation to the combined entity lies in its deep-seated community presence and its stable, low-cost funding base. This isn't just about adding branches; it's about cementing a regional stronghold. You can read more about the company's foundational principles here: Mission Statement, Vision, & Core Values of Old Point Financial Corporation (OPOF).

• High-Quality Core Deposit Franchise: The acquisition was primarily driven by Old Point's stable, high-quality core deposits, which provide a reliable and lower-cost source of funding for the larger bank's lending activities.
• Expanded Geographic Density: The merger significantly strengthens TowneBank's market position in the Hampton Roads Metropolitan Statistical Area (MSA), particularly in the Peninsula region, by adding Old Point's 13 branch locations.
• Leadership Continuity: Retaining key local leadership, such as former Old Point CEO Robert F. Shuford, Jr., who will chair the TowneBank Peninsula board, ensures local decision-making and customer relationship continuity, a critical factor for community bank success.
• Enhanced Wealth Management Scale: Integrating Old Point Wealth Management's operations expands the combined company's non-interest income stream and offers a broader suite of wealth services to a larger customer base.

Old Point Financial Corporation (OPOF) How It Makes Money

Old Point Financial Corporation, prior to its merger with TowneBank in September 2025, primarily generated revenue by acting as a financial intermediary, earning the spread between interest collected on loans and interest paid on customer deposits. This core banking function was supplemented by a significant stream of noninterest income from its wealth management and financial services subsidiaries.

The company's financial engine was a classic community bank model: borrow short (deposits) and lend long (loans), plus collect fees for a diverse set of services like trust administration and mortgage origination. This model was highly dependent on the Net Interest Margin (NIM), which measures that key profit spread.

Old Point Financial Corporation's Revenue Breakdown

Looking at the second quarter of 2025, the last full quarter before the merger, the revenue structure clearly shows the dominance of traditional lending activities. Total revenue for Q2 2025 was approximately $15.43 million.

Here's the quick math: Net Interest Income (NII) for Q2 2025 was approximately $12.2 million, while Noninterest Income was approximately $3.23 million. The NII growth trend was positive, with the six months ended June 30, 2025, NII at $24.2 million, up from $23.7 million in the prior-year period. Noninterest income also showed growth, driven by fiduciary and asset management fees.

Business Economics

The fundamental economics of Old Point Financial Corporation centered on optimizing its Net Interest Margin (NIM) while managing credit risk and operating expenses. The NIM is the single most important metric for a bank of this size.

• Pricing Strategy: The company's profitability was directly tied to successfully repricing its loan portfolio faster or at higher rates than it had to raise the cost of its deposits (interest-bearing liabilities).
• Cost Management: In the first quarter of 2025, noninterest expense (excluding merger costs) declined 4% to $12.2 million compared to the year-ago quarter, mainly due to lower salaries and employee benefits from prior cost reduction initiatives. Cost control was defintely a focus before the acquisition.
• Noninterest Income Drivers: The non-lending revenue stream came from two main areas: service charges on deposit accounts and, more importantly, fiduciary and asset management fees from Old Point Trust & Financial Services, N.A. (Wealth). This diversification provided a necessary hedge against interest rate volatility.
• Capital Efficiency: The merger with TowneBank, valued at approximately $203 million, was a strategic move to enhance the combined entity's position in the Hampton Roads market, demonstrating the economic reality that scale drives efficiency in regional banking.

Old Point Financial Corporation's Financial Performance

The company's financial health leading up to the September 2025 merger was characterized by a solid capital position but a declining Return on Equity (ROE) in the last reported quarter, reflecting the challenges of the operating environment and merger-related costs.

• Net Interest Margin (NIM): The NIM was healthy and improving, reaching 3.70% in the second quarter of 2025, up from 3.62% in the same period a year earlier. This increase signals effective management of the interest rate environment.
• Asset Quality: Asset quality remained strong, with non-performing assets (NPAs) totaling $3.3 million as of June 30, 2025, representing only 0.24% of total assets. Low NPAs are a key indicator of prudent lending practices.
• Capital Ratios: The Bank maintained a strong capital cushion, with a Tier 1 Capital ratio of 13.29% at June 30, 2025, well above regulatory minimums, showing it was well capitalized for its size.
• Profitability: Net income for the second quarter of 2025 was $1.2 million, or $0.24 per diluted common share, a significant drop from $2.5 million in the second quarter of 2024, largely due to merger-related expenses and other nonrecurring factors.
• Total Assets: As of June 30, 2025, total assets were $1.4 billion, with net loans held for investment at $994.3 million.

For a deeper dive into the shareholder landscape that led to the acquisition, you might find value in Exploring Old Point Financial Corporation (OPOF) Investor Profile: Who's Buying and Why?

Old Point Financial Corporation (OPOF) Market Position & Future Outlook

The future outlook for Old Point Financial Corporation is now fully integrated into TowneBank, following the successful $203 million acquisition that closed on September 1, 2025. This move effectively concluded Old Point Financial Corporation's run as an independent public company, transforming its strategic focus from standalone growth to maximizing value through merger synergies (the financial benefits from combining operations).

The core initiative on the horizon is the full system conversion of Old Point National Bank branches into the TowneBank platform, which is scheduled for February 2026. Until then, Old Point National Bank operates as a division of TowneBank, maintaining its local presence while transitioning to the larger entity's infrastructure.

Competitive Landscape

The acquisition of Old Point Financial Corporation, which had approximately $1.45 billion in total assets as of March 31, 2025, significantly solidified TowneBank's market dominance in the Hampton Roads Metropolitan Statistical Area (MSA). This regional banking landscape is characterized by intense competition between large national banks and well-capitalized local players like TowneBank.

Here's the quick math: TowneBank already held nearly 30% of the Hampton Roads deposit market share as of June 2024, and the Old Point acquisition cemented their leading position, pushing their share comfortably over the 30% mark against major national and regional rivals. That's a powerful position to be in.

Opportunities & Challenges

The near-term opportunities and risks are centered on the integration process and the combined entity's ability to execute its post-merger plan.

Industry Position

Old Point Financial Corporation's legacy is now defined by its contribution to a regional powerhouse, shifting from a smaller community bank with $1.45 billion in assets to an integral division of a major Virginia-based institution.

• Scale Jump: The merger creates a combined entity with pro forma total assets of $19.5 billion, solidifying its rank as one of the largest banks headquartered in Virginia.
• Geographic Density: The acquisition added Old Point's 13 branch offices, particularly strengthening the Peninsula region of Hampton Roads, which was a strategic gap for TowneBank.
• Wealth Management: Old Point Wealth Management, a highly respected local provider, continues to operate and expands the range of financial services (trust and estate administration, investment management, financial planning) available to TowneBank's broader client base.
• Leadership Continuity: The appointment of Old Point's former CEO as a senior executive vice president and chairman of the new Peninsula board ensures defintely strong local leadership continuity, which is crucial for retaining commercial clients.

For a deeper dive into the foundational principles that guided the company to this strategic exit, you should review the Mission Statement, Vision, & Core Values of Old Point Financial Corporation (OPOF).