Old Point National Bank - Comprehensive Analysis Report

Summary

Old Point National Bank, established in January 1923, has historically operated as a locally owned and managed full-service community bank. It offers a wide array of financial services to individuals and businesses across the Hampton Roads and Richmond regions of Virginia. The bank's mission is to serve the financial needs of its customers by providing dependable and reasonably priced products, being a full partner in community growth, valuing and rewarding employees, and returning a fair profit to shareholders, with excellent service as a hallmark.

As of September 1, 2025, Old Point National Bank officially became a division of TowneBank. This significant partnership aims to create a stronger community bank with deep roots in the Hampton Roads area, combining Old Point's community focus with TowneBank's expanded resources.

1. Strategic Focus & Objectives

Core Objectives

The bank, as a division of TowneBank, is strategically focused on enhancing its offerings and market position through expanded technical, financial, and geographical capabilities. A core objective is to continue providing relationship-based banking with a personal touch, particularly within the Hampton Roads and Richmond regions of Virginia.

Specialization Areas

Old Point National Bank specializes in a comprehensive range of financial services:

Personal Banking: This includes checking accounts, savings accounts, various lending options, and private banking services tailored to individual needs.

Business Banking: Solutions encompass commercial lending, sophisticated treasury services, and efficient payroll services for businesses of all sizes.

Wealth Management: This division provides financial planning, estate and trust administration, and professional investment management to help clients achieve their long-term financial goals.

Target Markets

The primary market segments for Old Point National Bank are individuals and businesses located in the Hampton Roads and Richmond regions of Virginia.

2. Financial Overview

Funding History

Old Point National Bank's parent entity, Old Point Financial Corporation (NASDAQ: OPOF), was acquired by TowneBank, with the merger agreement announced on April 3, 2025. The aggregate transaction value for this acquisition was approximately $203 million, based on Old Point common stock outstanding. Old Point shareholders had the option to elect to receive either $41.00 in cash or 1.1400 shares of TowneBank common stock for each outstanding Old Point share. This merger, effective September 1, 2025, is designed to create a stronger and more capable community bank.

Old Point Financial Corporation reported the following financial performance:

Net Income: $2.9 million for the fourth quarter of 2024 (diluted earnings per common share of $0.57), and $9.5 million for the full year ended December 31, 2024 (diluted earnings per common share of $1.88).

Total Assets: $1.5 billion as of December 31, 2024, and $1.4 billion as of June 30, 2025.

Total Deposits: Increased by $24.5 million, or 2.0%, from December 31, 2023, reaching $1.2 billion as of December 31, 2024.

Net Loans Held for Investment: $998.7 million as of December 31, 2024.

Revenue: Trailing twelve-month (TTM) revenue as of June 30, 2025, was $62.6 million, with fiscal year 2024 revenue at $61.6 million.

Pro forma for TowneBank's acquisition of Village Bank and Trust Financial Corp. and the Old Point acquisition, the combined company would have had total assets of $19.5 billion, loans of $13.1 billion, and deposits of $16.3 billion as of December 31, 2024.

3. Product Pipeline

Key Products/Services

Old Point National Bank offers a diverse portfolio of financial products and services:

Personal Checking and Savings: A range of options designed to meet various individual financial needs.

Lending Products: Includes personal loans, mortgages, and other credit solutions for individuals.

Private Banking: Specialized services for high-net-worth clients, offering personalized financial management.

Commercial Lending: Financing solutions for businesses, from small enterprises to larger corporations.

Treasury Services: Tools and services to optimize cash flow management for businesses.

Payroll Services: Streamlined payroll solutions for business clients.

Wealth Management Services: Comprehensive financial planning, estate and trust administration, and tailored investment management strategies.

Mortgage Division (Old Point Mortgage): Through a strategic alliance, the bank offers expanded mortgage product offerings with local decision-making, while maintaining its brand for select portfolio products.

4. Technology & Innovation

Technology Stack

Old Point National Bank leverages a robust technology infrastructure to provide convenient and secure financial services. Its core platforms include:

Online and Mobile Banking: These platforms enable customers to perform essential functions such as fund transfers, check deposits, bill payments, and provide targeted reporting for business clients.

Personal Financial Management Tools: Specific online tools like CardSwap and Direct Pay are offered to assist individuals with budgeting, expense tracking, and identifying spending trends.

Business Payment Solutions: Services include direct deposit, efficient payment collections, secure wire transfers, and electronic tax payment processing.

Advanced Security Features: The bank incorporates enhanced security measures across its platforms to protect customer data and mitigate fraud risks.

Through its integration as a division of TowneBank, Old Point aims to provide even greater technical capabilities and meet the evolving technology demands of its customers.

5. Leadership & Management

Executive Team

The leadership team at Old Point National Bank has played a pivotal role in its operations and strategic direction:

Robert F. Shuford Jr.: Chairman, President, and Chief Executive Officer of Old Point Financial Corporation and Old Point National Bank. He previously served as the bank's Senior Executive Vice President and Chief Operating Officer, succeeding Louis G. Morris.

Cathy W. Liles: Senior Vice President and Chief Financial Officer of Old Point Financial Corporation, and Executive Vice President and Chief Financial Officer of Old Point National Bank. Appointed effective November 8, 2024, after serving as Interim Chief Financial Officer since July 2024. Prior to Old Point, her experience includes roles at American National Bankshares Inc., Carter Bank & Trust, and Forvis LLP. She is a Certified Public Accountant.

Joseph Witt: President, Financial Services, Chief Strategy Officer of Old Point National Bank. He has been instrumental in strategic initiatives, including the alliance with Tidewater Home Funding.

Sherry Thacker: Executive Vice President and Mortgage Director with Old Point. She continues to lead the bank's mortgage loan production efforts, particularly following the strategic alliance in this area.

Megan Smith: Senior Vice President and Loan Operations Manager with Old Point National Bank, appointed October 1, 2021. She brings nearly two decades of banking and loan operations experience, including previous roles at Atlantic Union Bank and Xenith Bank.

Recent Leadership Changes

Robert F. Shuford Jr. was appointed President and CEO, taking over from Louis G. Morris, who retired at the end of 2025. Cathy W. Liles was named Senior Vice President and Chief Financial Officer of Old Point Financial Corporation and Executive Vice President and Chief Financial Officer of Old Point National Bank, effective November 8, 2024. She had previously served as the interim CFO since July 2024, following Paul M. Pickett's appointment to the role on October 24, 2023.

6. Talent and Growth Indicators

Hiring Trends and Workforce

As Old Point National Bank transitioned to a division of TowneBank on September 1, 2025, career opportunities for Old Point are now integrated with those of TowneBank and all Towne Family Companies. As of July