Mission Statement, Vision, & Core Values of Old Point Financial Corporation (OPOF)

When Old Point Financial Corporation, with 2025 first-quarter total assets of approximately $1.5 billion, agreed to a $203 million merger with TowneBank, the market saw a clear strategic move, but what does that mean for its foundational principles?

You need to know if the mission-to be a full partner in the community and return a fair profit to shareholders-survives a major acquisition, especially since they're now operating as a Division of TowneBank as of September 2025. We'll look at the core values that drove this bank for nearly a century.

Are those values just words, or are they the defintely anchor that will guide the combined entity's growth and your investment decisions going forward?

Old Point Financial Corporation (OPOF) Overview

You're looking for a clear picture of Old Point Financial Corporation (OPOF), especially now that the landscape has shifted. The direct takeaway is this: Old Point Financial Corporation, a century-old community bank, closed its merger with TowneBank on September 1, 2025, culminating a strong final run marked by improving net interest margins and a strategic exit for shareholders at $41.00 per share.

Old Point Financial Corporation was founded in 1923 in Hampton, Virginia, starting as The Bank of Phoebus to serve the local community. Over the decades, it grew into a bank holding company, forming the corporation in 1986 to allow for diversification. The company's core business centers on consumer, mortgage, and business banking, with a strong emphasis on the Hampton Roads and Richmond regions of Virginia.

Their product suite is comprehensive, covering the full spectrum of financial needs for individuals and businesses. They use plain English to describe their offerings, which include:

• Checking, savings, and money market accounts.
• Commercial, mortgage, auto, and personal loans.
• Wealth management, trust services, and financial planning.

For the trailing twelve months leading up to the end of Q2 2025, the company reported total annual sales of approximately $85.82 million. That's a solid revenue base for a regional institution, but the real story is how they positioned themselves for the merger.

Recent Financial Performance and Key Metrics (2025)

Honestly, the financial results for the first half of 2025 show a company that was managing its balance sheet well right up to the merger announcement. In the second quarter of 2025 (Q2 2025), Old Point Financial Corporation reported net income of $1.2 million, translating to diluted earnings per common share of $0.24. To be fair, this was a drop from the $2.2 million net income in Q1 2025, but the underlying banking performance was improving.

Here's the quick math on their core banking strength: Net Interest Income (NII)-the difference between interest earned on loans and interest paid on deposits-for the six months ended June 30, 2025, was $24.2 million. This figure was up from $23.7 million in the same period of 2024, primarily due to higher average yields on loan balances. The Net Interest Margin (NIM) also saw a positive trend, improving to 3.70% in Q2 2025 from 3.63% in Q1 2025. Improving NIM means the bank was getting more efficient at making money from its core lending business.

Plus, they were actively cleaning up the balance sheet. Non-performing assets-loans that aren't generating income-decreased by a strong 19.7% in Q2 2025, falling to just $3.3 million from the previous quarter. That's a clear signal of financial health and strong asset quality management ahead of the acquisition.

A Regional Leader's Strategic Move

Old Point Financial Corporation wasn't just another regional bank; it held a distinct position in its market. Its subsidiary, Old Point Wealth Management, is recognized as the largest wealth management services provider headquartered in Hampton Roads, Virginia. That kind of local leadership in a high-margin business like wealth management is defintely a key competitive advantage, even for a community-focused institution with total assets of $1.4 billion as of June 30, 2025.

This strong, established position is precisely why the merger with TowneBank, a larger, $17.5 billion institution, was a strategic win. It wasn't a desperate sale; it was a move to join a larger platform, creating a regional powerhouse that combines Old Point's local expertise and wealth management leadership with TowneBank's broader scale. The merger, valued at approximately $203 million, provided a compelling value proposition for shareholders. If you want to dig deeper into the shareholder dynamics behind this strategic move, you should check out Exploring Old Point Financial Corporation (OPOF) Investor Profile: Who's Buying and Why?

Old Point Financial Corporation (OPOF) Mission Statement

You're looking for the bedrock of Old Point Financial Corporation's strategy, and honestly, it all comes down to their mission statement. It's not just a plaque on the wall; it's a clear roadmap that guided the company's decisions, right up to its merger with TowneBank, which completed in September 2025. The mission is a five-part promise, plus a core service commitment, designed to balance the needs of customers, community, employees, and shareholders-the four key stakeholders in any community bank. This statement is what drove their operations when they had total assets of approximately $1.5 billion as of March 31, 2025.

The full mission statement is a concise declaration of purpose:

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

The company's founding values-local leadership, personal relationships, and unwavering support for our neighbors-are the emotional anchors for this mission. Let's break down the three most critical components that translate directly into financial strategy and client action.

Core Component 1: Excellent Service and Dependable Products

The mission states, 'Excellent service is the hallmark of our business,' and 'Provide dependable products, reasonably priced.' For you, a decision-maker, this means looking at product quality and accessibility. Old Point Financial Corporation wasn't just a bank; it was a full-service financial partner, offering retail and commercial banking, wealth management, and mortgage lending.

The quality of their lending portfolio, a key product, remained relatively strong despite market pressures in early 2025. For example, their non-performing assets (NPAs)-loans that aren't generating income-were only 0.29% of total assets as of March 31, 2025. That's a low credit risk number, defintely a sign of dependable underwriting. Plus, they maintained a physical presence to back up their digital offerings, operating through 13 branch offices and three wealth offices across the Hampton Roads and Richmond regions. You need access, and they provided it.

Core Component 2: Full Partners in Community Growth

Being a 'full partner in the growth and development of our community' is a non-negotiable for a regional bank. It's the core of their Community Reinvestment Act (CRA) obligations, which measures how well a bank meets the credit needs of its entire community, including low- and moderate-income areas. Old Point Financial Corporation consistently performed well here, receiving an Outstanding CRA rating at its last evaluation in 2022.

This commitment isn't just about regulatory compliance; it's about boots-on-the-ground support. The company's employees are known for donating thousands of hours of community service and collecting thousands of pounds of food for local food banks annually. That level of engagement is a direct investment in the local economic ecosystem, which ultimately stabilizes the bank's customer base. It's a smart, long-term strategy. You can see more about their foundational principles here: Old Point Financial Corporation (OPOF): History, Ownership, Mission, How It Works & Makes Money.

Core Component 3: Fair Profit to Shareholders

The final pillar, 'Return a fair profit to our shareholders,' is where the mission meets the market reality. A community bank must be profitable to be sustainable, and Old Point Financial Corporation showed solid performance leading up to the merger. Here's the quick math on profitability for the first half of 2025:

• Q1 2025 Net Income: $2.2 million
• Q1 2025 Return on Average Equity (ROE): 7.50%
• Q2 2025 Net Income: $1.2 million

While the second quarter saw a dip in net income, the ultimate return to shareholders was realized through the merger with TowneBank. The transaction, valued at $203 million, offered shareholders a choice of $41.00 per share in cash or TowneBank stock. This merger provided a significant premium, delivering on the promise of a fair profit and maximizing value for equity holders as the company transitioned into a division of a larger, regional entity. It was a clear, decisive action to ensure shareholder return.

Old Point Financial Corporation (OPOF) Vision Statement

You're looking at Old Point Financial Corporation (OPOF) now operating as a Division of TowneBank, and you need to know how their foundational vision translates into concrete financial action today, especially post-merger. The direct takeaway is this: the independent OPOF vision of being a leading community bank is now being executed through TowneBank's expanded resources, focusing on scale, service, and shareholder value from the $203 million transaction.

The strategic shift, effective September 1, 2025, means their former vision-which emphasized local leadership and innovative products-is now a critical component of a larger entity with approximately $19.5 billion in total assets. This union is the new operational framework, and it's where you should map your analysis. The old mission is still the anchor, but the execution is different.

Commitment to Serving Customer Financial Needs and Delivering Excellent Service

The core of Old Point Financial Corporation's vision has always been to serve the financial needs of its customers, and this is now amplified by TowneBank's infrastructure. The focus is on maintaining the personalized service model while expanding the product suite. This is how they aim to deliver on their promise of providing dependable, reasonably priced products. Before the merger, the company was already showing strength in its core banking functions, with first quarter 2025 net interest income growing 4% to $12.0 million from the year-ago quarter.

The merger immediately expands the scope of services, particularly in mortgage and insurance, which were already key offerings. For example, their digital banking suite-mobile check deposit, bill pay, and online account management-is now backed by a much larger technology budget, which helps mitigate the risk of being outpaced by larger regional banks. This is defintely a win for the customer.

• Maintain local decision-making.
• Expand product offerings via TowneBank.
• Reinforce digital banking capabilities.

Full Partnership in Community Growth and Development

A key pillar of the former Old Point Financial Corporation vision was its commitment to community development, which is now a shared value with TowneBank, reinforcing their deep roots in the Hampton Roads and Richmond regions. This isn't just a feel-good statement; it's a strategic advantage in community banking, driving deposit growth and loan origination. The company's focus on local economic conditions is what drives its commercial lending solutions.

As of March 31, 2025, the company reported total deposits of $1.3 billion, with the increase in deposits being primarily driven by large commercial and municipal customers. This growth shows the direct financial impact of being a trusted local partner. The commitment to community is the engine for the deposit base, which is the lifeblood of a bank. Here's the quick math: strong community ties lead to sticky deposits, which lower the cost of funds and improve the net interest margin, which was 3.54% for the 2024 fiscal year.

Achieving Sustainable Growth and Returning a Fair Profit

The vision of achieving sustainable growth and profitability has been realized through a strategic exit that created significant shareholder value. The merger agreement, valued at approximately $203 million, offered Old Point Financial Corporation shareholders the option to receive $41.00 per share in cash or TowneBank stock. This move provides a clear, immediate return on the company's independent market capitalization, which was around $204 million as of August 2025.

For the new combined entity, the focus shifts to realizing the expected accretion-the deal is expected to be 10% accretive to TowneBank's earnings per share. This is the new measure of success for the former OPOF operations. What this estimate hides is the execution risk of integrating systems, but the goal is clear: leverage TowneBank's scale to enhance profitability. Old Point Financial Corporation's net income for the year ended December 31, 2024, was $9.5 million, a strong base to integrate into the larger organization. You can dive deeper into the financial mechanics of this transition by reading Breaking Down Old Point Financial Corporation (OPOF) Financial Health: Key Insights for Investors.

Valuing Employees and Being the Employer of Choice

Attracting and retaining talented professionals-the former vision of being the employer of choice-is now critical for successful merger integration. The company's commitment to valuing and rewarding employee contributions is directly tied to the cost reduction initiatives that were already underway before the merger. For instance, noninterest expenses saw a 1.8% decrease in 2024, with significant reductions in salaries and employee benefits, which came from expense reduction initiatives. While this sounds like a cut, the merger provides increased operational scale and enhanced technological capabilities, which can lead to new career paths and opportunities within a larger, more robust organization.

The goal is to transition employees smoothly, maintaining the local expertise that is vital to the community banking model. If the integration of employee benefits and technology is poorly managed, customer service-the hallmark of the business-will suffer. The new, combined entity must make good on the promise to reward contributions, or the talent that drove the $1.5 billion in total assets will walk.

Old Point Financial Corporation (OPOF) Core Values

You're looking for the bedrock principles of Old Point Financial Corporation, especially now that the landscape has shifted with the TowneBank merger. The core values-Community Commitment, Customer Focus, and Shareholder Value-are not just plaques on a wall; they are the filter for every major decision, including the strategic move to join TowneBank in September 2025, which was defintely a value-creation event.

The company's mission has always been clear: serve and enrich the communities they operate in, build lasting relationships, and create value for shareholders. This focus is why the merger was positioned as a way to continue helping communities grow and thrive, leveraging TowneBank's broader resources.

Community Commitment

A community bank lives and dies by its local roots, and Old Point Financial Corporation's dedication here is a century-long story. They see themselves as a full partner in community growth, not just a lender.

This commitment is demonstrated through tangible, measurable actions, which is what I look for as an analyst. It's not just about writing a check; it's about showing up. Old Point employees, for example, donate thousands of hours of community service and collect thousands of pounds of food for local food banks every year. They also support hundreds of local charitable organizations. This local presence is a strategic advantage, fostering deep customer relationships that are hard for national players to replicate.

• Support hundreds of local charities.
• Employees volunteer thousands of hours annually.
• Provide dependable, reasonably priced products.

Customer Focus and Excellent Service

The core of the business model is built on excellent service, which means providing dependable products and building lasting relationships. In the financial world, this translates to both high-touch personal service and smart technology investment.

For individuals and commercial clients, Old Point Financial Corporation emphasizes local decision-making. This means your relationship manager understands the local market-Hampton Roads and Richmond-which speeds things up. Plus, they've been smart about the digital shift. They've invested in technology to provide a comprehensive suite of digital tools, including mobile banking and online account management, ensuring you get service how and when you need it. This balance is key: keep the local feel, but use technology to enhance service, not replace it.

Integrity and Shareholder Value

Honesty, transparency, and delivering a fair profit to shareholders are non-negotiables. The ultimate test of this value in 2025 was the merger with TowneBank, which was a clear move to maximize shareholder returns.

The transaction, valued at approximately $203 million, provided a significant return. Shareholders who approved the deal in July 2025 had the option to elect to receive either $41.00 in cash or 1.14 shares of TowneBank common stock for each share of Old Point Financial Corporation stock. Here's the quick math: that $41.00 per share was a concrete realization of value. Even as the company transitioned, their financial health remained solid, reporting total assets of $1.4 billion and total deposits of $1.2 billion as of June 30, 2025, showing a strong, clean balance sheet leading into the merger. This financial strength is the basis of integrity. If you want to dive deeper into the mechanics of who was buying and why, you should check out Exploring Old Point Financial Corporation (OPOF) Investor Profile: Who's Buying and Why?