Old Point Financial Corporation (OPOF): Business Model Canvas [Dec-2025 Updated]

You're digging into the strategy of Old Point Financial Corporation right as it's becoming part of TowneBank, and that transition is everything to watch. Honestly, understanding the Business Model Canvas now, based on its $\mathbf{\$1.5 \text{ billion}}$ asset base and $\mathbf{\$12.0 \text{ million}}$ in Q1 2025 Net Interest Income, shows us the engine powering the final stretch before the full system conversion next year. This map details how they balance that personal, relationship-based community banking-a key Value Proposition-with the operational reality of integrating core systems and leveraging TowneBank's scale. See below for the precise breakdown of their Key Resources, Revenue Streams, and the costs driving this pivotal moment for the bank.

Old Point Financial Corporation (OPOF) - Canvas Business Model: Key Partnerships

The Key Partnerships for Old Point Financial Corporation (OPOF) are now defined by its merger into TowneBank, effective September 1, 2025.

Parent company TowneBank for expanded capital and resources

The merger transaction value was approximately $203 million, with Old Point shareholders electing to receive $41.00 in cash or 1.1400 shares of TowneBank common stock per share. The combined entity, as of June 30, 2025, reported total assets of $18.26 billion for TowneBank. Pro forma for the acquisition, the combined company's assets were projected at $19.5 billion, with loans of $13.1 billion and deposits of $16.3 billion based on December 31, 2024, figures. TowneBank's total deposits increased by $2.17 billion, or 15.09%, compared to the prior year as of September 30, 2025.

MoneyPass® Network providing surcharge-free access to nearly 40,000 ATMs

The MoneyPass® Network provides surcharge-free access to nearly 40,000 ATMs.

Towne24 ATM network for surcharge-free transactions post-merger

Following the merger, the 13 Old Point National Bank locations will operate as "Old Point National Bank, a Division of TowneBank" until February 2026. TowneBank operates over 50 banking offices across its service areas.

Regulatory bodies (FDIC, Federal Reserve) for compliance and deposit insurance

Regulatory approval for the merger was received from the Federal Deposit Insurance Corporation (FDIC) and the Bureau of Financial Institutions of the Virginia State Corporation Commission on or before August 14, 2025. The Federal Reserve Bank of Richmond approval for Old Point Financial Corporation expired November 30, 2025. The FDIC UNINUM for The Old Point National Bank of Phoebus is 186221.

Third-party vendors for core banking software and IT infrastructure

The global core banking software market is expected to reach $40.67 billion by 2029. Key vendors in the industry include companies whose solutions are used by financial institutions globally, such as those whose platforms serve over 100+ countries.

Key Partnership Data Points

The integration of Old Point Wealth Management continues to offer its products and services as an addition to the TowneBank family of companies.

Old Point Financial Corporation (OPOF) - Canvas Business Model: Key Activities

The key activities for Old Point Financial Corporation, as it transitioned through the merger with TowneBank in late 2025, centered on operational continuity and integration milestones.

Core system conversion and integration into TowneBank's platform by February 2026

The operational activity of system integration was formally scheduled to conclude by February 2026 following the merger's effective date of September 1, 2025.

Commercial and retail loan origination and portfolio management

As of March 31, 2025, the portfolio included $1.0 billion in net loans. This represented a contraction of 5% in net loans from March 31, 2024, to March 31, 2025. The asset quality metrics showed specific pressure points:

The allowance for credit losses totaled $11.8 million at March 31, 2025.

Deposit gathering and treasury services for business clients

Deposit gathering activity showed modest growth leading up to the merger. Deposits increased by 2% from March 31, 2024, to March 31, 2025. Quarter-over-quarter, total deposits grew by $2.6 million (or 0.2%) from Q4 2024 to Q1 2025.

The company offered deposit products including interest-bearing transaction accounts, money market deposit accounts, savings accounts, time deposits, and demand deposits.

Fiduciary and investment management via Old Point Trust

Old Point Trust & Financial Services, N.A. (Wealth) continued to offer its products and services as an addition to the TowneBank family following the merger. The company operated three wealth offices as of March 31, 2025.

The company declared a quarterly cash dividend of $0.14 per share.

Maintaining regulatory compliance and risk management

The capital position remained sound as of March 31, 2025, with shareholders' equity at $117 million, representing 8.08% of total assets. The Tier 1 Capital ratio was reported at 13.04%.

Key risk management activities involved:

• Maintaining internal controls for credit underwriting and interest rate exposure.
• Addressing compliance risks related to BSA/AML policies and procedures.
• Implementing safeguards for information security and cybersecurity programs.

The holding company, as of its last 10-K filing, was not subject to minimum consolidated regulatory capital ratios under the Small Bank Holding Company Policy Statement, which applies to bank holding companies with consolidated total assets of less than $3 billion.

Old Point Financial Corporation (OPOF) - Canvas Business Model: Key Resources

The foundation of Old Point Financial Corporation's business model rests on tangible and intangible assets that support its community banking operations across Virginia. As of March 31, 2025, the holding company reported total assets of approximately $1.5 billion. This asset base supports the physical footprint across the target markets.

The physical presence is anchored by a network of offices serving the Hampton Roads and Richmond, Virginia regions. This network includes 13 branch offices. Furthermore, Old Point Financial Corporation maintains specialized service points, specifically three wealth offices. The Richmond presence is supported by at least one commercial lending office.

Human capital is a distinct resource, particularly within the specialized service lines. You have dedicated professionals focused on high-net-worth clients and complex financial needs. This includes the deployment of experienced Wealth Management professionals and dedicated Private Bankers.

Here are some key financial metrics supporting the resource base as of the first quarter of 2025:

The core deposit base is critical for funding stability and cost management. As of March 31, 2025, total deposits stood at $1.3 billion. A key component of this funding strength is the noninterest-bearing deposit segment, which saw an increase of $15.7 million, or 4.4%, from the end of 2024. This growth was primarily driven by increases from large commercial and municipal customers.

Brand equity is tied to a long-standing presence in the local economy. Old Point Financial Corporation began its operations in January 1923. This legacy is now integrated with a larger entity, as Old Point proudly became a Division of TowneBank in September 2025.

The tangible and human resources can be summarized this way:

• 13 branch offices across the service footprint
• Three wealth offices supporting specialized services
• Total assets of approximately $1.5 billion as of March 31, 2025
• A core funding base of $1.3 billion in total deposits
• A legacy dating back to 1923

Old Point Financial Corporation (OPOF) - Canvas Business Model: Value Propositions

You're looking at the value propositions for Old Point Financial Corporation (OPOF) as of late 2025, which means we must consider the immediate post-merger environment following the September 1, 2025, closing with TowneBank. The value proposition is now a blend of Old Point's established local focus and TowneBank's expanded infrastructure.

Relationship-based community banking with a personal touch remains central. This is maintained by having experienced local bankers who provide personal attention and local decision-making, a key part of the TowneBank strategy. While Old Point National Bank locations operate as a Division of TowneBank until February 2026, this continuity ensures the personal touch you expect remains in place during the transition.

The offering is now full-service financial solutions, integrating Old Point's prior services with TowneBank's broader capabilities. This means access to:

• Banking (retail and commercial)
• Mortgage services via TowneBank Mortgage
• Insurance via Towne Insurance Agency
• Wealth management and trust services

The merger immediately provides access to TowneBank's greater financial and geographical capabilities. The combined entity solidifies a strong regional position. Here are some figures reflecting that scale as of late 2025:

For the immediate term, customers benefit from the existing Old Point service structure, which includes surcharge-free access to a large network of ATMs. Specifically, the legacy Old Point service advertised:

• Surcharge-free access to nearly 40,000 convenient ATMs worldwide

This access is provided while the core systems integration is pending completion in February 2026.

Finally, local asset management and trust services are preserved through Old Point Wealth Management, which continues to operate as an addition to the TowneBank family of companies. This means you still get personalized management of your wealth, trust, and estate administration services, leveraging the local expertise that defined Old Point, now backed by the larger Towne structure.

Finance: draft 13-week cash view by Friday.

Old Point Financial Corporation (OPOF) - Canvas Business Model: Customer Relationships

You're looking at the relationship structure for Old Point Financial Corporation right as it transitions into the TowneBank family, effective September 1, 2025. The core of their customer relationship strategy, right up until the final close, was built on localized presence and specialized service tiers.

Dedicated Private Banker model for high-net-worth and business clients

Old Point Financial Corporation supported its higher-value clients through specialized divisions. Old Point Trust & Financial Services, N.A. ("Wealth") provided a full range of wealth management services. This included investment management, financial planning, and trust/estate administration. The bank also explicitly listed Private Banking as a service offering. This structure suggests a dedicated, high-touch approach for clients needing more than standard retail services, a model that TowneBank, the acquirer, also emphasizes in its own strategy.

High-touch, in-person service at 13 local branch locations

The physical footprint was central to the relationship model. As of March 31, 2025, Old Point Financial Corporation served its market through 13 branch offices. These locations covered key areas including Hampton, Newport News, Williamsburg/James City County, Norfolk, Chesapeake, Virginia Beach, and Isle of Wight County. The bank was locally owned and managed, which historically supported local decision-making. The total employee base supporting these relationships was 260 total employees as of June 30, 2025.

Here's a quick look at the operational scale supporting these in-person relationships just before the merger:

Digital self-service via online and mobile banking platforms

While the in-person model was strong, Old Point also offered digital access. The bank provided online and mobile banking services for its customers. These platforms allowed for self-service functions, which is key for day-to-day transactional needs, complementing the relationship-focused lending and wealth advisory services.

Community engagement and local decision-making focus

The emphasis on local service was a defining characteristic, which the merger was intended to enhance. Old Point National Bank was described as a locally owned and managed community bank. The merger agreement itself, announced April 3, 2025, was framed by TowneBank as a partnership that would 'continue to help our communities grow and thrive'. The integration means Old Point's former CEO, Robert F. Shuford, Jr., was appointed to a leadership role within TowneBank, specifically as chairman of the TowneBank Peninsula board starting January 1, 2026, signaling an intent to maintain local leadership continuity.

The relationship strategy relied on this local commitment:

• Old Point Wealth Management offered local asset management by experienced professionals.
• The bank served specific Virginia regions, indicating a focused geographic relationship strategy.
• The merger was valued at approximately $203 million.
• Shareholders approved the merger on July 2, 2025.

Finance: draft pro-forma customer integration plan for Q1 2026 by Friday.

Old Point Financial Corporation (OPOF) - Canvas Business Model: Channels

The physical distribution network for Old Point Financial Corporation, as of March 31, 2025, centered on a network of 13 physical branch offices serving the Hampton Roads region of Virginia, including locations in Chesapeake, Hampton, Isle of Wight County, Newport News, Norfolk, Virginia Beach, Williamsburg, and Yorktown.

Specialized services are delivered through dedicated points of presence. Old Point Trust & Financial Services, N.A. (Wealth) operated through three wealth offices as of March 31, 2025. Commercial lending activities were supported by two commercial lending offices, one of which is located in Richmond, Virginia.

Digital channels provide account access for both personal and business customers. Following the merger effective September 1, 2025, Old Point customers gained access to the Towne24 ATM network surcharge-free, in addition to the existing MoneyPass® Network access.

The digital service offerings include:

• Online banking access for account management.
• Mobile app access for on-the-go banking.
• Features like fund transfers, check deposit, and bill pay via digital platforms.
• Integration with Zelle® for sending and receiving money.
• Debit card controls available within the online and mobile platforms.

The ATM access strategy includes surcharge-free use of nearly 40,000 ATMs nationwide through the MoneyPass® Network. As a convenience following the September 1, 2025 merger, Old Point debit and ATM cards became usable surcharge-free at any Towne24 ATM beginning September 3, 2025.

Old Point Financial Corporation (OPOF) - Canvas Business Model: Customer Segments

You're looking at the customer base for Old Point Financial Corporation (OPOF) right around the time of its acquisition by TowneBank, effective September 1, 2025. This means the data reflects the final state of OPOF's distinct segments before full integration.

The core service area for The Old Point National Bank of Phoebus (OPNB) remained concentrated in the Hampton Roads MSA, though it had expanded its commercial lending presence to Richmond, Virginia. As of March 31, 2025, the physical footprint supporting these customers included 13 branch offices, two commercial lending offices, and three wealth offices. Total assets for Old Point Financial Corporation stood at approximately $1.5 billion as of that date.

The Customer Segments were served through two main subsidiaries: OPNB for traditional banking and Old Point Trust & Financial Services, N.A. ("Wealth") for fiduciary services.

Small to mid-sized commercial and business customers in Hampton Roads

This group was central to OPNB's lending and deposit franchise. The bank offered commercial banking solutions including loan origination, deposit services, and cash management tailored for this market.

• Service area focused on the Hampton Roads region.
• Commercial lending offices included one in Richmond, Virginia.

Retail and individual customers within the local Virginia market

OPNB provided a broad range of banking services to individuals across its branch network. This segment drove a significant portion of the total deposit base, which was $1,255 million as of the first quarter of 2025.

• Services included checking accounts, insurance, and mortgage products.
• The bank maintained 13 branch offices to serve these customers.

High-Net-Worth Individuals requiring trust and wealth management services

This segment was served by Old Point Trust & Financial Services, N.A. ("Wealth"). Before the merger, this division was described as the largest wealth management services provider headquartered in Hampton Roads, Virginia. The scale of this operation was substantial.

• Assets under management were approximately $1.1 billion near the merger date.
• Services included investment management, financial planning, and trust/estate administration.
• The segment operated out of three wealth offices.

Municipal and large commercial customers for deposit relationships

While the focus was on small to mid-sized businesses, the bank also secured deposits from larger entities, including municipal relationships, which contributed to its overall deposit base. The merger with TowneBank was specifically noted to enhance the combined entity's position with the addition of a high-quality core deposit franchise from OPOF.

Here's a quick look at the financial scale of the business serving these segments as of early 2025:

The merger closing on September 1, 2025, means that for the final quarter of 2025, these customer relationships began operating under the TowneBank umbrella, with OPNB locations slated to convert to TowneBank systems by February 2026. The value of the transaction was set at approximately $203 million.

Old Point Financial Corporation (OPOF) - Canvas Business Model: Cost Structure

The Cost Structure for Old Point Financial Corporation, particularly in late 2025, is heavily influenced by the recent merger with TowneBank, which became effective on September 1, 2025. The integration process itself is a significant cost driver extending into the near term.

Interest expense on deposits and borrowings remains a major driver of overall costs, though Old Point Financial Corporation saw some relief in the cost of funding during the first quarter of 2025. Specifically, average interest-bearing liabilities costs decreased by 20 basis points for the quarter ended March 31, 2025, compared to the linked fourth quarter of 2024. This was mainly due to lower interest rates on money market and time deposits, even with an increase in average short-term borrowings during that period.

Personnel and employee benefits are a core component of noninterest expense. For the first quarter of 2025, noninterest expense, excluding merger costs, was reported at $12.2 million. The total Noninterest Expense for Q1 2025 was $12.4 million, up from $12.1 million in Q4 2024. This total increase of $359 thousand from the linked quarter was primarily driven by increases in merger-related costs, professional services, occupancy and equipment, and data processing, partially offset by decreases in salaries and employee benefits.

The physical footprint contributes to fixed costs. Old Point National Bank (OPNB) serves customers through their 13 branch offices located in the Hampton Roads region of Virginia. Costs related to occupancy and equipment expenses are embedded within the total noninterest expense, which saw upward pressure in Q1 2025 due to these categories.

Merger-related costs are a temporary but material factor as Old Point Financial Corporation integrates with TowneBank. The core systems and operations of Old Point National Bank are scheduled to be converted into those of TowneBank through February 2026, meaning integration and system conversion costs will continue to be recognized in the cost structure through early 2026.

Managing potential credit quality issues requires setting aside funds, known as the Provision for credit losses. Old Point Financial Corporation recognized a provision for credit losses of $717 thousand during the first quarter of 2025. This was a substantial increase from the $90 thousand recognized in the fourth quarter of 2024.

Here's a snapshot of key Q1 2025 cost-related figures:

The cost structure is also impacted by specific one-time items mentioned in the context of Q1 2025 results, such as the retirement of subordinated notes (2025), which adds to noninterest expense in the period the event occurs.

You should monitor the run-rate for noninterest expenses excluding merger costs, as the $12.2 million figure for Q1 2025 (excluding merger costs) reflects a 4% decline year-over-year, showing cost reduction initiatives were taking effect before the full integration costs hit. The key action here is tracking the run-rate of the combined entity post-February 2026 conversion.

Old Point Financial Corporation (OPOF) - Canvas Business Model: Revenue Streams

You're looking at the core ways Old Point Financial Corporation generates its top-line revenue, which is critical for understanding its financial engine, especially given the announced merger with TowneBank in 2025. The revenue streams are fundamentally split between interest-based income and noninterest income, a standard structure for a bank holding company like Old Point Financial Corporation.

The primary driver remains the spread between what Old Point Financial Corporation earns on its assets and what it pays on its liabilities. For the first quarter of 2025, this was quite solid.

• Net Interest Income from loans for Q1 2025 was reported at $12.0 million.
• This figure saw a sequential increase to $12.2 million in the second quarter of 2025.

The overall revenue picture for the period leading up to the merger closing in September 2025 is anchored by the following aggregate figure, as specified for this analysis:

• Trailing 12-month revenue as of June 30, 2025, was $62.6 million.

The profitability for the first quarter of 2025, which feeds into retained earnings, was reported at $2.2 million in net income. For the six months ended June 30, 2025, net income totaled $3.4 million.

Noninterest Income provides diversification, which is always a plus in banking. For Q1 2025, total noninterest income was $3.8 million, an increase from $3.2 million in the linked fourth quarter of 2024. This growth was notably supported by specific fee categories and a one-time event.

Here is a breakdown of the key components of Noninterest Income for Old Point Financial Corporation in the first quarter of 2025, which directly map to your required revenue stream elements:

The components related to wealth management and trust fees are clearly represented by the Fiduciary and asset management fees, which brought in $1.332 million in Q1 2025. For service charges, you see Service charges on deposit accounts at $770,000, plus Other service charges, commissions and fees at $943,000. While the specific dollar amount for interchange fees and mortgage origination income isn't cleanly isolated from the Other service charges, commissions and fees line, these elements are certainly captured within the noninterest income structure.

To summarize the Q1 2025 Noninterest Income sources:

• Wealth Management/Trust Fees: $1.332 million from Fiduciary and asset management fees.
• Service Charges: $770,000 from service charges on deposit accounts.
• Other Fees/Commissions: $943,000 from other service charges, commissions and fees.
• Non-Recurring Item: A $656,000 gain from note retirement boosted the quarter.

Finance: draft 13-week cash view by Friday.