TowneBank to acquire Old Point Financial for a transaction value of ~$203M

TowneBank (NASDAQ:TOWN) is set to acquire the bank holding company Old Point Financial (NASDAQ:OPOF) for a transaction value of ~$203M.

TOWN shares were trading 7.32% down Thursday pre-market at $31.42, while OPOF was -0.70% to $29.70.

Old Point shareholders can elect to receive either $41.00 in cash or 1.1400 shares of TowneBank common stock for each share they own.

The stockholders can elect cash or stock consideration so long as the total stock consideration issued represents between 50% and 60% of the consideration paid.

Both boards have approved the definitive agreement and plan of merger.

The combined company is expected to have assets of $19.5B, loans of $13.1B and deposits of $16.3B as of December 31, 2024.

TowneBank expects the acquisition to be ~10% accretive to EPS with fully phased-in cost savings on a GAAP basis.

The transaction is expected to close in the second half.