OLD POINT FINANCIAL CORPORATION (NASDAQ:OPOF) Files An 8-K Termination of a Material Definitive Agreement
Item 1.02 Termination of a Material Definitive Agreement.
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On September 10, 2007, the Old Point National Bank of
Phoebus (the Bank), a wholly-owned subsidiary of Old Point Financial Corporation (the Company), entered into a joint venture agreement with Tidewater Mortgage Services, Inc. (TMSI) to provide mortgage origination services through Old Point Mortgage, LLC (OPM), a joint venture between the Bank and TMSI. Per the terms of the joint venture agreement, TMSI and the Bank owned 51% and 49%, respectively, of OPM, and TMSI was the managing member. The parties’ entry into this joint venture agreement was disclosed in the Company’s current report on Form 8-K filed with the SEC on September 11, 2007.
On January 13, 2017, the Bank entered into a membership
interest purchase agreement (the Purchase Agreement) with TMSI to purchase TMSI’s 51% interest in OPM, with the Bank to be the sole member of OPM upon completion of the purchase. The parties’ entry into the Purchase Agreement was disclosed in the Company’s current report on Form 8-K filed with the SEC on January 20, 2017.
On April 20, 2017, the Bank completed its purchase of
TMSI’s interest in OPM, which terminates the joint venture agreement between TMSI and the Bank and makes OPM a wholly-owned subsidiary of the Bank as of that date. OPM’s fair value is based on its financials as of March 31, 2017 and was determined by an independent third party. As a result of the fair value calculation, the Company expects to record income on the purchase of approximately $500 thousand in the second quarter of 2017. The exact amount of the income to be recorded is subject to additional review of the assumptions used in the final valuation report. |
About OLD POINT FINANCIAL CORPORATION (NASDAQ:OPOF)
Old Point Financial Corporation is a holding company that conducts all of its operations through two subsidiaries, The Old Point National Bank of Phoebus (the Bank) and Old Point Trust & Financial Services, N.A. (the Trust). The Company operates in three principal business segments: the Bank, the Trust and the Parent. The Company is the parent company of Trust and the Bank. The Bank is an independent community bank. The Bank had approximately 18 branch offices serving the Hampton Roads localities of Hampton, Newport News, Norfolk, Virginia Beach, Chesapeake, Williamsburg/James City County, York County and Isle of Wight County. The Bank offers a complete line of consumer, mortgage and business banking services, including loan, deposit and cash management services. The Bank offers a range of deposit and loan products to its retail and commercial customers. The Trust is a nationally chartered trust company and is wealth management services provider. OLD POINT FINANCIAL CORPORATION (NASDAQ:OPOF) Recent Trading Information
OLD POINT FINANCIAL CORPORATION (NASDAQ:OPOF) closed its last trading session up +0.10 at 30.81 with 10,993 shares trading hands.