Activist investor PL Capital has taken a $3.5 million stake in Old Point Financial (OPOF) in Hampton, Va.
The Morristown, N.J., investor, which disclosed a 5.4% stake in a regulatory filing Monday, said it could take steps designed to boost the $877 million-asset company's stock price. PL Capital said it believes Old Point's shares are undervalued and that it will "monitor the performance of the company and the actions of the company's management and board."
PL Capital did not specify in the filing what plans it is considering.
Shares of Old Point have risen 16% in a 12-month period that ended Jan. 3. Shares were trading at $13.75 each on Monday afternoon.
PL Capital, led by Richard Lashley and John Palmer, bought Old Point stock in several transactions last month. The firm said it may increase its stake in Old Point up to 9.9% of its shares.
Old Point has 19 branches in the Hampton Roads area of Virginia. The company lost two directors in November. Richard Clark died on Nov. 12, and Robert Riddle resigned a day later, citing family reasons.
Last month PL Capital signed a standstill agreement with BankFinancial (BFIN) in Burr Ridge, Ill. The agreement allows Palmer to join the $1.4 billion-asset company's board in exchange for PL Capital's support of BankFinancial's other nominees.