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Old Point Releases Second Quarter 2024 Results

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Old Point Financial reported net income of $2.5 million with diluted earnings per share of $0.50 for Q2 2024, up from $1.7 million and $0.34 EPS in Q1 2024. Key highlights include:

- Total assets were $1.4 billion as of June 30, 2024, down 1.6% from December 31, 2023
- Net loans held for investment decreased 2.4% to $1.0 billion
- Total deposits increased 0.5% to $1.2 billion
- Return on average equity (ROE) was 9.43%, up from 6.44% in Q1 2024
- Net interest margin improved to 3.62% from 3.45% in Q1 2024
- Non-performing assets decreased to 0.14% of total assets

The company continued cost-saving initiatives, expecting to reduce annual noninterest expense by $5.0 million when fully implemented. Old Point plans to close its Crown Center branch in Norfolk on September 27, 2024.

Old Point Financial ha registrato un reddito netto di 2,5 milioni di dollari con utile per azione diluito di 0,50 dollari per il secondo trimestre del 2024, in aumento rispetto a 1,7 milioni di dollari e 0,34 dollari di EPS nel primo trimestre del 2024. I punti salienti includono:

- Gli attivi totali erano 1,4 miliardi di dollari al 30 giugno 2024, in diminuzione dell'1,6% rispetto al 31 dicembre 2023
- I prestiti netti detenuti per investimento sono diminuiti del 2,4% a 1,0 miliardo di dollari
- I depositi totali sono aumentati dello 0,5% a 1,2 miliardi di dollari
- Il rendimento medio del capitale (ROE) è stato del 9,43%, in aumento dal 6,44% nel primo trimestre del 2024
- Il margine di interesse netto è migliorato al 3,62% rispetto al 3,45% nel primo trimestre del 2024
- Gli attivi non performanti sono diminuiti allo 0,14% degli attivi totali

L'azienda ha continuato le sue iniziative di risparmio sui costi, prevedendo di ridurre le spese non di interesse annuali di 5,0 milioni di dollari una volta implementate completamente. Old Point prevede di chiudere la sua filiale di Crown Center a Norfolk il 27 settembre 2024.

Old Point Financial reportó un ingreso neto de 2.5 millones de dólares con ganancias por acción diluidas de 0.50 dólares para el segundo trimestre de 2024, un aumento desde 1.7 millones de dólares y 0.34 dólares de EPS en el primer trimestre de 2024. Los aspectos destacados incluyen:

- Los activos totales eran 1.4 mil millones de dólares al 30 de junio de 2024, una disminución del 1.6% desde el 31 de diciembre de 2023
- Los préstamos netos mantenidos para inversión disminuyeron un 2.4% a 1.0 mil millones de dólares
- Los depósitos totales aumentaron un 0.5% a 1.2 mil millones de dólares
- El retorno sobre el capital promedio (ROE) fue del 9.43%, en aumento desde el 6.44% en el primer trimestre de 2024
- El margen de interés neto mejoró al 3.62% desde el 3.45% en el primer trimestre de 2024
- Los activos no rentables disminuyeron al 0.14% de los activos totales

La empresa continuó sus iniciativas de ahorro de costos, esperando reducir los gastos no relacionados con intereses anuales en 5.0 millones de dólares una vez completamente implementadas. Old Point planea cerrar su sucursal de Crown Center en Norfolk el 27 de septiembre de 2024.

Old Point Financial은 2024년 2분기에 250만 달러의 순이익희석 주당순이익 0.50달러를 보고했으며, 이는 2024년 1분기의 170만 달러와 0.34달러에서 증가한 수치입니다. 주요 하이라이트는 다음과 같습니다:

- 2024년 6월 30일 현재 총 자산은 14억 달러로, 2023년 12월 31일 대비 1.6% 감소했습니다.
- 투자용으로 보유된 순 대출은 2.4% 감소하여 10억 달러에 이르렀습니다.
- 총 예금은 0.5% 증가하여 12억 달러에 도달했습니다.
- 평균 자본 수익률(ROE)은 9.43%로, 2024년 1분기의 6.44%에서 증가했습니다.
- 순이자 마진은 3.62%로, 2024년 1분기의 3.45%에서 개선되었습니다.
- 비수익 자산은 총 자산의 0.14%로 감소했습니다.

회사는 비용 절감 이니셔티브를 지속하여 전액 시행되면 연간 비이자 비용을 500만 달러 줄일 것으로 예상하고 있습니다. Old Point는 2024년 9월 27일에 노퍽의 크라운 센터 지점을 폐쇄할 계획입니다.

Old Point Financial a annoncé un revenu net de 2,5 millions de dollars avec un bénéfice par action dilué de 0,50 dollar pour le deuxième trimestre de 2024, en hausse par rapport à 1,7 million de dollars et 0,34 dollar de BPA au premier trimestre de 2024. Les points forts comprennent :

- Les actifs totaux étaient de 1,4 milliard de dollars au 30 juin 2024, en baisse de 1,6 % par rapport au 31 décembre 2023
- Les prêts nets détenus à des fins d'investissement ont diminué de 2,4 % pour atteindre 1,0 milliard de dollars
- Les dépôts totaux ont augmenté de 0,5 % pour atteindre 1,2 milliard de dollars
- Le retour sur fonds propres moyen (ROE) était de 9,43 %, en hausse par rapport à 6,44 % au premier trimestre de 2024
- La marge d'intérêt nette s'est améliorée à 3,62 %, contre 3,45 % au premier trimestre de 2024
- Les actifs non performants ont diminué à 0,14 % des actifs totaux

L'entreprise a poursuivi ses initiatives d'économies de coûts, s'attendant à réduire les dépenses annuelles non d'intérêt de 5,0 millions de dollars une fois pleinement mises en œuvre. Old Point prévoit de fermer sa succursale de Crown Center à Norfolk le 27 septembre 2024.

Old Point Financial berichtete von einem Nettoeinkommen von 2,5 Millionen Dollar mit verwässertem Gewinn pro Aktie von 0,50 Dollar für das 2. Quartal 2024, ein Anstieg von 1,7 Millionen Dollar und 0,34 Dollar EPS im 1. Quartal 2024. Die wichtigsten Höhepunkte sind:

- Die Gesamtvermögenswerte beliefen sich am 30. Juni 2024 auf 1,4 Milliarden Dollar, ein Rückgang um 1,6% gegenüber dem 31. Dezember 2023
- Die Netto-Darlehen, die für Investitionen gehalten werden, sanken um 2,4% auf 1,0 Milliarden Dollar
- Die Gesamteinlagen stiegen um 0,5% auf 1,2 Milliarden Dollar
- Die Rendite auf das durchschnittliche Eigenkapital (ROE) betrug 9,43%, ein Anstieg von 6,44% im 1. Quartal 2024
- Die Nettozinsmarge verbesserte sich auf 3,62% gegenüber 3,45% im 1. Quartal 2024
- Die notleidenden Vermögenswerte sanken auf 0,14% der Gesamtvermögenswerte

Das Unternehmen setzte Kostensenkungsinitiativen fort und erwartet, die jährlichen nichtzinslichen Aufwendungen um 5,0 Millionen Dollar zu senken, wenn diese vollständig implementiert sind. Old Point plant, seine Filiale im Crown Center in Norfolk am 27. September 2024 zu schließen.

Positive
  • Net income increased 47.3% quarter-over-quarter to $2.5 million
  • Diluted EPS rose to $0.50 from $0.34 in Q1 2024
  • Return on average equity (ROE) improved to 9.43% from 6.44% in Q1 2024
  • Net interest margin increased to 3.62% from 3.45% in Q1 2024
  • Total deposits grew 0.5% to $1.2 billion
  • Non-performing assets decreased to 0.14% of total assets
  • Cost-saving initiatives expected to reduce annual noninterest expense by $5.0 million
Negative
  • Total assets decreased 1.6% to $1.4 billion from December 31, 2023
  • Net loans held for investment declined 2.4% to $1.0 billion
  • Mortgage banking income decreased due to lower mortgage origination volume
  • One-time costs of $550,000 incurred for cost-saving initiatives, with additional $350,000 expected

Insights

Old Point Financial's Q2 2024 results show some positive trends, but also raise a few concerns:

  • Earnings improvement: Net income increased to $2.5 million ($0.50 EPS), up 47.3% from Q1 2024 and 40.3% from Q2 2023. This is a significant improvement in profitability.
  • Net interest margin (NIM) expansion: NIM increased to 3.62% from 3.45% in Q1 2024, indicating better interest rate management.
  • Asset quality: Non-performing assets remained low at 0.14% of total assets, suggesting strong credit quality.
  • Deposit growth: Total deposits increased slightly by 0.5% from December 2023, with noninterest-bearing deposits up 8.5%. This is positive for funding costs.
  • Loan contraction: Net loans decreased by 2.4% from December 2023, which could impact future interest income if the trend continues.
  • Cost-saving initiatives: The company expects $5 million in annual pre-tax savings, which should boost profitability once fully implemented.

While the improved earnings and NIM are encouraging, the loan contraction and reliance on cost-cutting for profit growth warrant attention. The bank's ability to grow its loan portfolio in a challenging economic environment will be important for sustained long-term performance.

HAMPTON, Va., July 25, 2024 /PRNewswire/ -- Old Point Financial Corporation (the "Company" or "Old Point") (NASDAQ "OPOF") reported net income of $2.5 million with diluted earnings per common share of $0.50 for the second quarter of 2024 compared to net income of $1.7 million with diluted earnings per common share of $0.34 for the first quarter of 2024, and net income of $1.8 million with diluted earnings per common share of $0.36 for the second quarter of 2023. Net income for the six months ended June 30, 2024 was $4.2 million with diluted earnings per common share of $0.84, and for the six months ended June 30, 2023, net income was $4.9 million with diluted earnings per common share of $0.97.

Robert Shuford, Jr., Chairman, President and CEO of the Company and Old Point National Bank (the "Bank") commented, "We are pleased to report to our shareholders that performance improved in the second quarter of 2024. We grew our earnings, we increased our net interest margin, and our asset quality remained strong. Net income was the highest it has been in five quarters at $2.5 million with book value at $21.66 per share. While loan growth slowed as expected, our core deposit growth was stronger than anticipated.

We continued our cost saving initiatives to reduce noninterest expense in the second quarter. Year to date, we have incurred $550 thousand of one-time costs with an additional $350 thousand expected to be incurred through the remainder of the year. We continue to believe that when fully implemented, these initiatives will reduce noninterest expense by approximately $5.0 million on an annualized pre-tax basis (excluding one-time costs). While the investments required for these cost saving initiatives have impacted our bottom line in the first half of the year, we expect them to become accretive to earnings in the third quarter of 2024.

Additionally, we will be closing our Crown Center branch, located at 580 East Main Street in Norfolk on September 27, 2024. This is not a decision we made lightly and we remain dedicated to serving customers in the community by providing banking services through our other nearby branches, online and mobile banking, and customer support center.

We approach the second half of 2024 with continued optimism given the strength of our company, driven by an outstanding team of employees. I remain fully confident about the ability of our team to drive value for our customers, our communities, and our shareholders."

Key highlights of the second quarter are as follows:

  • Total assets were $1.4 billion at June 30, 2024, decreasing $23.0 million or 1.6% from December 31, 2023. Net loans held for investment were $1.0 billion at June 30, 2024, decreasing $25.3 million, or 2.4%, from December 31, 2023.
  • Total deposits increased $6.2 million, or 0.5%, from December 31, 2023.
  • Return on average equity (ROE) was 9.43% for the second quarter of 2024, compared to 6.44% for the first quarter of 2024, and 7.01% for the second quarter of 2023. Return on average assets (ROA) was 0.71% for the second quarter of 2024, compared to 0.48% for the first quarter of 2024, and 0.51% for the second quarter of 2023.
  • Book value per share and tangible book value per share (non-GAAP) at June 30, 2024 increased 1.45% and 1.50%, from March 31, 2024 and 6.39% and 6.60%, respectively from June 30, 2023.
  • Net income improved $812 thousand, or 47.3%, to $2.5 million for the second quarter of 2024 from $1.7 million for the first quarter of 2024 and improved $727 thousand, or 40.3% from $1.8 million for the second quarter of 2023.
  • Net interest margin (NIM) was 3.62% for the second quarter of 2024 compared to 3.45% for the first quarter of 2024 and 3.67% for the second quarter of 2023. NIM on a fully tax-equivalent basis (FTE) (non-GAAP) was 3.63% for the second quarter of 2024 compared to 3.46% for the first quarter of 2024 and 3.69% for the second quarter of 2023.
  • Net interest income increased $576 thousand, or 5.0%, to $12.1 million for the second quarter of 2024 from $11.5 million for the first quarter of 2024 and increased $17 thousand, or 0.1%, compared to the second quarter of 2023.
  • Provision for credit losses of $261 thousand was recognized for the second quarter of 2024, compared to $80 thousand for the first quarter of 2024 and $361 thousand for the second quarter of 2023.
  • Non-performing assets decreased by $193 thousand to $2.0 million or 0.14% of total assets at June 30, 2024 from $2.2 million or 0.15% of total assets at March 31, 2024 and increased $516 thousand from $1.4 million or 0.10% of total assets at June 30, 2023.
  • Liquidity as of June 30, 2024, defined as cash and cash equivalents, unpledged securities, and available secured borrowing capacity, totaled $403.8 million, representing 28.4% of total assets compared to $342.5 million, representing 23.7% of total assets as of December 31, 2023.

For more information about financial measures that are not calculated in accordance with GAAP, please see "Non-GAAP Financial Measures" and "Reconciliation of Certain Non-GAAP Financial Measures" below.

Balance Sheet and Asset Quality
Total assets of $1.4 billion as of June 30, 2024 decreased $23.0 million from December 31, 2023. Net loans held for investment decreased $25.3 million, or 2.4% from December 31, 2023 to $1.0 billion at June 30, 2024, driven by the following: decreases in consumer loans of $21.6 million, construction loans of $17.1 million, and commercial loans of $7.5 million, partially offset by increases in residential real estate loans of $11.0 million and commercial real estate loans of $10.7 million. Securities available-for-sale, at fair value, decreased $10.1 million from December 31, 2023 to $192.1 million at June 30, 2024.

Total deposits of $1.2 billion as of June 30, 2024 increased $6.2 million, or 0.5%, from December 31, 2023. Noninterest-bearing deposits increased $28.3 million, or 8.5% and time deposits increased $8.8 million, or 3.6%, partially offset by decreases in savings deposits of $30.9 million, or 4.7%. The increased balance in noninterest bearing deposits is driven by increases from large commercial customers. Overnight repurchase agreements, Federal Home Loan Bank advances, and subordinated notes decreased $30.8 million to $70.7 million at June 30, 2024 from $101.5 million at December 31, 2023, as the Company used excess liquidity to pay down high cost borrowed funds.

The Company's total stockholders' equity at June 30, 2024 increased $3.2 million, or 3.0%, from December 31, 2023 to $110.0 million. The increase was primarily driven by net income and lower unrealized losses in the market value of securities available-for-sale, which are recorded as a component of accumulated other comprehensive loss, partially offset by cash dividend payments. The unrealized loss in market value of securities available-for-sale was a result of increases in market interest rates since the securities were acquired, rather than credit quality issues.  The Company does not expect these unrealized losses to affect the earnings or regulatory capital of the Company or its subsidiaries. The Bank remains well capitalized with a Tier 1 Capital ratio of 12.07% at June 30, 2024 as compared to 11.45% at December 31, 2023. The Bank's leverage ratio was 9.87% at June 30, 2024 as compared to 9.46% at December 31, 2023. 

Non-performing assets (NPAs) totaled $2.0 million as of June 30, 2024 compared to $2.2 million at March 31, 2024 and $1.4 million as of June 30, 2023. NPAs as a percentage of total assets were 0.14% at June 30, 2024, compared to 0.15% at March 31, 2024 and 0.10% at June 30, 2023. Non-accrual loans were $44 thousand at June 30, 2024, a decrease from $194 thousand at March 31, 2024 and a decrease from $235 thousand at June 30, 2023. The decrease in non-accrual loans from the prior year comparative quarter was related to the resolution of two relationships. Loans past due 90 days or more and still accruing interest decreased $434 thousand to $444 thousand at June 30, 2024 from $878 thousand at March 31, 2024 and decreased $764 thousand from $1.2 million at June 30, 2023. Repossessed assets were $1.5 million at June 30, 2024 compared to $1.1 million at March 31, 2024 and none at June 30, 2023. The increase in repossessed assets from the prior periods was driven by the resolution of certain loans that were previously past due.

The Company recognized a provision for credit losses of $261 thousand during the second quarter of 2024 compared to $80 thousand during the first quarter of 2024 and $361 thousand during the second quarter of 2023. The provision for credit losses for the second quarter of 2024 included a provision of $191 thousand for loans and $70 thousand for unfunded commitments. The allowance for credit losses (ACL) at June 30, 2024 was $12.1 million including an allowance for credit losses on loans of $11.8 million and the allowance for unfunded commitments of $309 thousand. The decrease in the allowance for credit losses on loans during the second quarter of 2024 was due primarily to reduction in the size of the portfolio, specifically the consumer automobile segment (within the consumer segment). The allowance for credit losses on loans as a percentage of loans held for investment was 1.12% at June 30, 2024 compared to 1.12% at March 31, 2024, and 1.06% at June 30, 2023. Quarterly annualized net charge-offs as a percentage of average loans outstanding were 0.12% for the second quarter of 2024, compared to 0.12% for the first quarter of 2024 and 0.08% for the second quarter of 2023. As of June 30, 2024, asset quality remains very strong.  Management believes the level of the allowance for credit losses is sufficient to absorb expected losses in the loan portfolio; however, if elevated levels of risk are identified, the provision for credit losses may increase in future periods.   

Net Interest Income
Net interest income for the second quarter of 2024 was $12.1 million, an increase of $576 thousand, or 5.0%, from the prior quarter and $17 thousand, or 0.1%, from the second quarter of 2023. The increase from the linked quarter was due to higher average yields on earning asset balances partially offset by lower average interest-bearing liabilities at higher average rates. The increase from the prior-year comparative quarter was due primarily to higher average earning asset balances at higher average yields partially offset by higher average interest-bearing liabilities at higher average rates. For the six months ended June 30, 2024 and 2023, net interest income was $23.7 million and $24.9 million, respectively. The decrease from the prior-year comparative period was due to higher average-interest bearing liabilities at higher average rates, partially offset by higher average earning assets at higher average earning yields.

Net Interest Margin (NIM) for the second quarter of 2024 was 3.62%, an increase from 3.45% for the first quarter of 2024, and a decrease from 3.67% for the prior year quarter. On a fully tax-equivalent basis (FTE) (non-GAAP), NIM was 3.63%, for the second quarter of 2024, compared to 3.46% for the first quarter of 2024 and 3.69% for the second quarter of 2023.  Average earning asset balances increased $19.9 million at June 30, 2024 compared to June 30, 2023 with yields on average earning assets increasing 45 basis points due to deployment of liquidity into higher earning assets and the effects of the rising interest rate environment.  Average interest-bearing liabilities increased $23.7 million for the quarter ended June 30, 2024 compared to the quarter ended June 30, 2023 with costs increasing 69 basis points.  The higher interest cost of liabilities was primarily due to higher interest rates on money market and time deposits, partially offset by decreases in short term average FHLB advances during the period. During the first six months of 2024, average earning assets and average interest-bearing liabilities increased $35.3 million and $72.6 million, over the 2023 comparative period, respectively.

Average loans decreased $26.8 million, or 2.5%, for the second quarter compared to the same period of 2023.  Average yields on loans and investment securities were 45 basis points and 28 basis points higher in the second quarter of 2024 due primarily to the effects of rising interest rates. The extent to which rising interest rates will ultimately affect the Company's NIM is uncertain. For more information about these FTE financial measures, please see "Non-GAAP Financial Measures" and "Reconciliation of Certain Non-GAAP Financial Measures," below.

Noninterest Income
Total noninterest income was $3.5 million for the second quarter of 2024 compared to $3.2 million for the first quarter of 2024 and $3.5 million for the comparative quarter of 2023. The $249 thousand increase during the second quarter of 2024 compared to the linked quarter was primarily driven by increases in service charges on deposit accounts and other service charges, commissions, and fees. The $6 thousand decrease compared to the second quarter of 2023 was driven by decreases in mortgage banking income and no gains on the sale of fixed assets, partially offset by increases in other service charges, commissions, and fees and no losses on available for sale securities. The decrease in mortgage banking income in the second quarter of 2024 compared to the second quarter of 2023 was due to declines in the volume of mortgage originations attributable to changes in mortgage market conditions. Noninterest income for the six months ended June 30, 2024 decreased $205 thousand to $6.7 million compared to the six months ended June 30, 2023 primarily driven by decreases in mortgage banking income.

Noninterest Expense
Noninterest expense totaled $12.3 million for the second quarter of 2024 compared to $12.7 million for the first quarter of 2024 and $13.1 million for the second quarter of 2023. The decrease in expenses from the linked quarter of $379 thousand was primarily related to decreases in salaries and employee benefits and ATM and other losses, partially offset by increases in customer development and occupancy and equipment. The decrease in expenses over the prior year quarter was primarily driven by decreases in salaries and employee benefit expense and employee professional development expense, partially offset by increases in occupancy and equipment and data processing. The decrease in salaries and employee benefits in the second quarter of 2024 was primarily driven by lower average headcount and fewer one-time costs related to the cost saving initiatives as the majority of these were incurred in the first quarter of 2024. The noninterest expense reduction initiatives reduced the employee headcount late in the first quarter of 2024 and into the second quarter by approximately 12%. Occupancy and equipment expenses increased over the comparative periods due to the impairment of the right-of-use asset for the upcoming closure of the Crown Center branch. For the six months ended June 30, 2024, noninterest expense decreased $288 thousand, or 1.1% over the six months ended June 30, 2023, primarily due to decreases in salary and employee benefits as discussed above.

Capital Management and Dividends
For the second quarter of 2024, the Company declared a dividend of $0.14 per share, consistent with the second quarter of 2023. The dividend represents a payout ratio of 28.0% of earnings per share for the second quarter of 2024. The Board of Directors of the Company continually reviews the amount of cash dividends per share and the resulting dividend payout ratio in light of changes in economic conditions, current and future capital requirements, and expected future earnings.

Total consolidated equity increased $3.2 million at June 30, 2024, compared to December 31, 2023, due primarily to net income and lower unrealized losses in the market value of securities available-for-sale, which are recognized as a component of accumulated other comprehensive loss, partially offset by cash dividend payments. The Company's securities available-for-sale are fixed income debt securities, and their unrealized loss position is a result of increases in market interest rates since the investments were acquired rather than credit quality issues. The Company expects to recover its investments in debt securities through scheduled payments of principal and interest and unrealized losses are not expected to affect the earnings or regulatory capital of the Company or its subsidiaries.

At June 30, 2024, the book value per share of the Company's common stock was $21.66, and tangible book value per share (non-GAAP) was $21.30. For more information about non-GAAP financial measures, please see "Non-GAAP Financial Measures" and "Reconciliation of Certain Non-GAAP Financial Measures," below.

Non-GAAP Financial Measures
In reporting the results as of and for the three and six months ended June 30, 2024, the Company has provided supplemental financial measures on a fully tax-equivalent, tangible, or adjusted basis. These non-GAAP financial measures are a supplement to GAAP, which is used to prepare the Company's financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, the Company's non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies. The Company uses the non-GAAP financial measures discussed herein in its analysis of the Company's performance. The Company's management believes that these non-GAAP financial measures provide additional understanding of ongoing operations and enhance comparability of results of operations with prior periods presented without the impact of items or events that may obscure trends in the Company's underlying performance.  A reconciliation of the non-GAAP financial measures used by the Company to evaluate and measure the Company's performance to the most directly comparable GAAP financial measures is presented below.

Safe Harbor Statement Regarding Forward-Looking Statements
Statements in this press release, including without limitation, statements made in Mr. Shuford's quotation , which use language such as "believes," "expects," "plans," "may," "will," "should," "projects," "contemplates," "anticipates," "forecasts," "intends" and similar expressions, may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current beliefs of Old Point's management, as well as estimates and assumptions made by, and information currently available to, management, as of the time such statements are made. These statements are also subject to assumptions with respect to future business strategies and decisions that are subject to change. These statements are inherently uncertain, and there can be no assurance that the underlying beliefs, estimates, or assumptions will prove to be accurate. Actual results, performance, achievements, or trends could differ materially from historical results or those expressed or implied by such statements. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or its businesses or operations. Forward-looking statements in this release may include, without limitation, statements regarding: efficiency and expense reduction initiatives, including the estimated effects and estimated future cost savings thereof, and the estimated timing of recognizing the benefits of such initiatives; future financial performance; future financial and economic conditions, industry conditions, and loan demand; Old Point's strategic focuses; impacts of economic uncertainties; performance of the loan and securities portfolios; deposit growth and future levels of rates paid on deposits; levels and sources of liquidity and capital resources; future levels of the allowance for credit losses, charge-offs or net recoveries; levels of or changes in interest rates and potential impacts on Old Point's NIM; changes in NIM and items affecting NIM; expected impact of unrealized losses on earnings and regulatory capital of Old Point or the Bank; and statements that include other projections, predictions, expectations, or beliefs about future events or results, or otherwise are not statements of historical fact.

These forward-looking statements are subject to significant risks and uncertainties due to factors that could have a material adverse effect on the operations and future prospects of Old Point including, but not limited to, changes in or the effects of: interest rates and yields, such as increases or volatility in short-term interest rates or yields on U.S. Treasury bonds and increase or volatility in U.S. Treasury bonds and increases or volatility in mortgage interest rates, and the impacts on macroeconomic conditions, customer and client behavior, Old Point's funding costs and Old Point's loan and securities portfolios; inflation and its impacts on economic growth and customer and client behavior; adverse developments in the financial services industry, such as the bank failures in 2023, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior; the sufficiency of liquidity and regulatory capital; general economic and business conditions in the United States generally and particularly in the Company's service area, including higher inflation, slowdowns in economic growth, unemployment levels, supply chain disruptions, and the impacts on customer and client behavior; conditions within the financial markets and in the banking industry, as well as the financial condition and capital adequacy of other participants in the banking industry, and the market reactions thereto; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Department of the Treasury and the Federal Reserve, the effect of these policies on interest rates and business in our markets and any changes associated with the current administration; conditions in the banking industry and the financial condition and capital adequacy of other participants in the banking industry, and market, supervisory and regulatory reactions thereto; the quality or composition of the loan or securities portfolios and changes therein; effectiveness of expense control initiatives; an insufficient ACL or volatility in the ACL resulting from the CECL methodology, either alone or as may be affected by inflation, changing interest rates or other factors; the Company's liquidity and capital positions; the value of securities held in the Company's investment portfolios; deposit flows; the Company's technology, efficiency, and other strategic initiatives; the legislative/regulatory climate, regulatory initiatives with respect to financial institutions, products and services; the Consumer Financial Protection Bureau (the "CFPB") and the regulatory and enforcement activities of the CFPB; future levels of government defense spending, particularly in the Company's service areas; uncertainty over future federal spending or budget priorities, particularly in connection with the Department of Defense, on the Company's service areas; the impact of changes in the political landscape and related policy changes, including monetary, regulatory, and trade policies; the U.S. Government's guarantee of repayment of student or small business loans purchased by the Company; potential claims, damages and fines related to litigation or government actions; changes in the volume and mix of interest-earning assets and interest-bearing liabilities; the effects of management's investment strategy and strategy to manage the NIM; the level of net charge-offs on loans; the performance of the Company's dealer/indirect lending program; the strength of the Company's counterparties; the Company's ability to compete in the market for financial services and increased competition from both banks and non-banks, including fintech companies; demand for financial services in Old Point's market area; the Company's ability to develop and maintain secure and reliable electronic systems; any interruption or breach of security in the Company's information systems or those of the Company's third party vendors or their service providers; reliance on third parties for key services; cyber threats, attacks, or events; the impact of changes in the political landscape and related policy changes, including monetary, regulatory, and trade policies; the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, financial crises, political crises, war, and other geopolitical conflicts, such as the war between Russia and Ukraine or in the Middle East, or public health events, and of governmental and societal responses thereto, on, among other things, the Company's operations, liquidity, and credit quality; the use of inaccurate assumptions in management's modeling systems; technological risks and developments; the commercial and residential real estate markets; the demand in the secondary residential mortgage loan markets; expansion of the Company's product offerings; effectiveness of expense control initiatives; changes in management; changes in accounting principles, standards, policies guidelines, and interpretations and elections made by the Company thereunder, and the related impact on the Company's financial statements; and other factors detailed in Old Point's publicly filed documents, including its Annual Report on Form 10-K for the year ended December 31, 2023, which have been filed with the U.S. Securities and Exchange Commission ("SEC") and are available on the SEC's website at www.sec.gov. These risks and uncertainties should be considered in evaluating the forward-looking statements contained herein. Forward-looking statements are not statements of historical fact. Readers are cautioned not to place undue reliance on such statements, which speak only as of date they are made.

The Company does not intend or assume any obligation to update, revise or clarify any forward-looking statements that may be made from time to time or on behalf of the Company, whether as a result of new information, future events or otherwise, except as otherwise required by law. In addition, past results of operations are not necessarily indicative of future results.

Information about Old Point Financial Corporation
Old Point Financial Corporation (Nasdaq: OPOF) is the parent company of Old Point National Bank and Old Point Wealth Management, which serve the Hampton Roads and Richmond regions of Virginia. Old Point National Bank is a locally owned and managed community bank which offers a wide range of financial services from checking, insurance, and mortgage products to comprehensive commercial lending and banking products and services. Old Point Wealth Management is the largest wealth management services provider headquartered in Hampton Roads, Virginia, offering local asset management by experienced professionals. Additional information about the company is available at oldpoint.com.

For more information, contact Laura Wright, Vice President/Marketing Director, at lwright@oldpoint.com or (757) 728-1743.

Old Point Financial Corporation and Subsidiaries

Consolidated Balance Sheets

June 30,

December 31,

(dollars in thousands, except per share amounts)

2024

2023


(unaudited)


Assets






Cash and due from banks

$             15,517

$           16,778

Interest-bearing due from banks

76,635

63,539

Federal funds sold

593

489

Cash and cash equivalents

92,745

80,806

Securities available-for-sale, at fair value

192,127

202,231

Restricted securities, at cost

3,825

5,176

Loans held for sale

-

470

Loans, net

1,042,774

1,068,046

Premises and equipment, net

30,783

29,913

Premises and equipment, held for sale

344

344

Bank-owned life insurance

35,623

35,088

Goodwill

1,650

1,650

Core deposit intangible, net

165

187

Other assets

23,318

22,471

Total assets

$       1,423,354

$      1,446,382




Liabilities & Stockholders' Equity






Deposits:



Noninterest-bearing deposits

$           360,296

$         331,992

Savings deposits

624,777

655,694

Time deposits

251,502

242,711

Total deposits

1,236,575

1,230,397

Overnight repurchase agreements

1,381

2,383

Federal Home Loan Bank advances

39,586

69,450

Subordinated notes

29,733

29,668

Accrued expenses and other liabilities

6,083

7,706

Total liabilities

1,313,358

1,339,604




Stockholders' equity:



Common stock, $5 par value, 10,000,000 shares authorized; 5,077,525 and
5,040,095 shares outstanding (includes 68,113 and 53,660 of nonvested
restricted stock, respectively)

25,047

24,932

Additional paid-in capital

17,248

17,099

Retained earnings

84,999

82,277

Accumulated other comprehensive loss, net

(17,298)

(17,530)

Total stockholders' equity

109,996

106,778

Total liabilities and stockholders' equity

$       1,423,354

$      1,446,382




 

Old Point Financial Corporation and Subsidiaries







Consolidated Statements of Income (unaudited)

Three Months Ended


Six Months Ended

(dollars in thousands, except per share amounts)

Jun. 30, 2024

Mar. 31, 2024

Jun. 30, 2023


Jun. 30, 2024

Jun. 30, 2023








Interest and Dividend Income:







Loans, including fees

$              15,042

$              14,544

$              14,185


$              29,586

$              27,226

Due from banks

1,087

799

93


1,886

157

Federal funds sold

12

9

9


21

15

Securities:







Taxable

1,761

1,798

1,772


3,559

3,536

Tax-exempt

139

139

209


278

421

Dividends and interest on all other securities

77

94

79


171

145

Total interest and dividend income

18,118

17,383

16,347


35,501

31,500








Interest Expense:







Checking and savings deposits

2,699

2,597

1,569


5,296

2,423

Time deposits

2,337

2,172

1,419


4,509

1,956

Federal funds purchased, securities sold under







agreements to repurchase and other borrowings

1

1

2


2

39

Federal Home Loan Bank advances

670

778

963


1,448

1,580

Long term borrowings

295

295

295


590

590

Total interest expense

6,002

5,843

4,248


11,845

6,588

Net interest income

12,116

11,540

12,099


23,656

24,912

Provision for credit losses

261

80

361


341

737

Net interest income after provision for credit losses

11,855

11,460

11,738


23,315

24,175








Noninterest Income:







Fiduciary and asset management fees

1,129

1,192

1,154


2,321

2,270

Service charges on deposit accounts

837

758

793


1,595

1,546

Other service charges, commissions and fees

1,150

883

1,027


2,033

2,136

Bank-owned life insurance income

270

265

259


535

513

Mortgage banking income

2

16

112


18

207

Loss on sale of available-for-sale securities, net

-

-

(164)


-

(164)

Gain (loss) on sale of repossessed assets

(58)

22

(69)


(36)

(69)

Gain on sale of fixed assets

-

-

200


-

200

Other operating income

141

86

165


227

259

Total noninterest income

3,471

3,222

3,477


6,693

6,898








Noninterest Expense:







Salaries and employee benefits

7,195

7,831

8,043


15,026

15,406

Occupancy and equipment

1,373

1,173

1,255


2,546

2,450

Data processing

1,393

1,315

1,264


2,708

2,443

Customer development

176

55

101


231

214

Professional services

680

585

756


1,265

1,429

Employee professional development

167

211

289


378

523

Other taxes

276

261

234


537

447

ATM and other losses

98

231

154


329

409

Other operating expenses

966

1,041

1,051


2,007

1,994

Total noninterest expense

12,324

12,703

13,147


25,027

25,315

Income before income taxes

3,002

1,979

2,068


4,981

5,758

Income tax expense

473

262

266


735

873

Net income

$                 2,529

$                 1,717

$                 1,802


$                 4,246

$                 4,885








Basic Earnings per Common Share:







Weighted average shares outstanding

5,064,363

5,039,819

5,023,305


5,052,091

5,011,481

Net income per share of common stock

$                   0.50

$                   0.34

$                   0.36


$                   0.84

$                   0.97








Diluted Earnings per Common Share:







Weighted average shares outstanding

5,064,503

5,039,876

5,023,603


5,052,190

5,011,697

Net income per share of common stock

$                   0.50

$                   0.34

$                   0.36


$                   0.84

$                   0.97








Cash Dividends Declared per Share:

$                   0.14

$                   0.14

$                   0.14


$                   0.28

$                   0.28








 

Old Point Financial Corporation and Subsidiaries








Average Balance Sheets, Net Interest Income And Rates





















For the quarters ended

(unaudited)

June 30, 2024

March 31, 2024

June 30, 2023



Interest



Interest



Interest



Average

Income/

Yield/

Average

Income/

Yield/

Average

Income/

Yield/

(dollars in thousands)

Balance

Expense

Rate**

Balance

Expense

Rate**

Balance

Expense

Rate**

ASSETS










Loans*

$   1,061,884

$   15,042

5.68 %

$   1,076,894

$   14,544

5.42 %

$   1,088,723

$   14,185

5.23 %

Investment securities:










Taxable

169,675

1,761

4.16 %

175,241

1,798

4.12 %

183,278

1,772

3.88 %

Tax-exempt*

26,036

176

2.71 %

26,115

176

2.70 %

37,851

265

2.81 %

Total investment securities

195,711

1,937

3.97 %

201,356

1,974

3.93 %

221,129

2,037

3.69 %

Interest-bearing due from banks

79,752

1,087

5.47 %

57,921

799

5.53 %

7,510

93

4.96 %

Federal funds sold

894

12

5.38 %

709

9

5.09 %

718

9

4.88 %

Other investments

4,506

77

6.85 %

5,201

94

7.33 %

4,806

79

6.68 %

Total earning assets

1,342,747

$   18,155

5.42 %

1,342,081

$   17,420

5.21 %

1,322,886

$   16,403

4.97 %

Allowance for credit losses

(11,905)



(12,393)



(11,732)



Other non-earning assets

107,487



105,193



106,738



Total assets

$   1,438,329



$   1,434,881



$   1,417,892













LIABILITIES AND STOCKHOLDERS' EQUITY










Time and savings deposits:










Interest-bearing transaction accounts

$        94,868

$             3

0.01 %

$        94,434

$             3

0.01 %

$        80,393

$             3

0.02 %

Money market deposit accounts

446,359

2,689

2.42 %

452,198

2,587

2.29 %

437,481

1,558

1.43 %

Savings accounts

85,098

7

0.03 %

89,035

7

0.03 %

105,161

8

0.03 %

Time deposits

247,472

2,337

3.79 %

238,076

2,172

3.66 %

200,951

1,419

2.83 %

Total time and savings deposits

873,797

5,036

2.31 %

873,743

4,769

2.19 %

823,986

2,988

1.45 %

Federal funds purchased, repurchase










agreements and other borrowings

2,006

1

0.20 %

2,484

1

0.32 %

4,959

2

0.13 %

Federal Home Loan Bank advances

54,006

670

4.98 %

69,716

778

4.48 %

77,255

963

4.93 %

Long term borrowings

29,712

295

3.98 %

29,680

295

3.99 %

29,585

295

3.95 %

Total interest-bearing liabilities

959,521

6,002

2.51 %

975,623

5,843

2.40 %

935,785

4,248

1.82 %

Demand deposits

362,884



344,098



370,907



Other liabilities

8,380



8,209



8,125



Stockholders' equity

107,544



106,951



103,075



Total liabilities and stockholders' equity

$   1,438,329



$   1,434,881



$   1,417,892



Net interest margin*


$   12,153

3.63 %


$   11,577

3.46 %


$   12,155

3.69 %











*Computed on a fully tax-equivalent basis (non-GAAP) using a 21% rate, adjusting interest income








  by $37 thousand, $37 thousand, and $56 thousand for the quarters ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively.





**Annualized








 

Old Point Financial Corporation and Subsidiaries





Average Balance Sheets, Net Interest Income And Rates















For the six months ended June 30,

(unaudited)

2024

2023



Interest



Interest



Average

Income/

Yield/

Average

Income/

Yield/

(dollars in thousands)

Balance

Expense

Rate**

Balance

Expense

Rate**

ASSETS







Loans*

$   1,069,389

$   29,586

5.55 %

$   1,072,391

$   27,226

5.12 %

Investment securities:







Taxable

172,458

3,559

4.14 %

184,776

3,536

3.86 %

Tax-exempt*

26,075

352

2.71 %

38,028

533

2.83 %

Total investment securities

198,533

3,911

3.95 %

222,804

4,069

3.68 %

Interest-bearing due from banks

68,837

1,886

5.49 %

7,056

157

4.48 %

Federal funds sold

801

21

5.26 %

648

15

4.59 %

Other investments

4,853

171

7.07 %

4,222

146

6.95 %

Total earning assets

1,342,413

$   35,575

5.31 %

1,307,121

$   31,613

4.88 %

Allowance for credit losses

(12,149)



(11,536)



Other nonearning assets

106,340



105,630



Total assets

$   1,436,604



$   1,401,215










LIABILITIES AND STOCKHOLDERS' EQUITY







Time and savings deposits:







Interest-bearing transaction accounts

$        94,651

$             6

0.01 %

$        75,351

$             6

0.02 %

Money market deposit accounts

449,279

5,277

2.36 %

433,235

2,400

1.12 %

Savings accounts

87,066

13

0.03 %

110,491

17

0.03 %

Time deposits

242,774

4,509

3.72 %

174,902

1,956

2.26 %

Total time and savings deposits

873,770

9,805

2.25 %

793,979

4,379

1.11 %

Federal funds purchased, repurchase







agreements and other borrowings

2,245

2

0.18 %

6,450

39

1.23 %

Federal Home Loan Bank advances

61,861

1,448

4.69 %

65,009

1,580

4.90 %

Long term borrowings

29,696

590

3.98 %

29,568

590

4.03 %

Total interest-bearing liabilities

967,572

11,845

2.46 %

895,006

6,588

1.48 %

Demand deposits

353,491



396,202



Other liabilities

8,294



8,235



Stockholders' equity

107,247



101,772



Total liabilities and stockholders' equity

$   1,436,604



$   1,401,215



Net interest margin*


$   23,730

3.55 %


$   25,025

3.86 %








*Computed on a fully tax-equivalent basis (non-GAAP) using a 21% rate, adjusting interest income





  by $74 thousand and $113 thousand for the six months ended June 30, 2024 and 2023, respectively.





**Annualized





 

Old Point Financial Corporation and Subsidiaries

As of or for the quarters ended,


For the six months ended,

Selected Ratios (unaudited)

June 30,

March 31,

June 30,


June 30,

June 30,

(dollars in thousands, except per share data)

2024

2024

2023


2024

2023








Earnings per common share, diluted

$              0.50

$              0.34

$              0.36


$              0.84

$              0.97

Return on average assets (ROA)

0.71 %

0.48 %

0.51 %


0.59 %

0.70 %

Return on average equity (ROE)

9.43 %

6.44 %

7.01 %


7.94 %

9.68 %

Net Interest Margin (FTE) (non-GAAP)

3.63 %

3.46 %

3.69 %


3.55 %

3.86 %

Efficiency ratio

79.07 %

86.05 %

84.41 %


82.46 %

79.58 %

Efficiency ratio (FTE) (non-GAAP)

78.88 %

85.83 %

84.10 %


82.26 %

79.30 %

Book value per share

21.66

21.35

20.36




Tangible Book Value per share (non-GAAP)

21.31

20.99

19.99




Non-performing assets (NPAs) / total assets

0.14 %

0.15 %

0.10 %




Annualized Net Charge-Offs / average total loans

0.12 %

0.12 %

0.08 %




Allowance for credit losses on loans / total loans

1.12 %

1.12 %

1.06 %











Non-Performing Assets (NPAs)







Nonaccrual loans

$                  44

$               194

$               235




Loans > 90 days past due, but still accruing interest

444

878

1,208




Repossessed assets

1,471

1,080

-




Total non-performing assets

$            1,959

$            2,152

$            1,443











Other Selected Numbers







Loans, net

$     1,042,774

$     1,055,955

$     1,082,965




Deposits

1,236,575

1,228,269

1,228,715




Stockholders' equity

109,996

107,630

102,542




Total assets

1,423,354

1,445,489

1,443,059




Loans charged off during the quarter, net of recoveries

311

336

210




Quarterly average loans

1,061,884

1,076,894

1,088,723




Quarterly average assets

1,438,329

1,434,881

1,417,892




Quarterly average earning assets

1,342,747

1,342,081

1,322,886




Quarterly average deposits

1,236,681

1,217,841

1,194,893




Quarterly average equity

107,544

106,951

103,075











 

Old Point Financial Corporation and Subsidiaries





Reconciliation of Certain Non-GAAP Financial Measures (unaudited)





(dollars in thousands, except per share data)

Three months ended


For the six months ended,


Jun. 30, 2024

Mar. 31, 2024

Jun. 30, 2023


Jun. 30, 2024

Jun. 30, 2023








Fully Taxable Equivalent Net Interest Income







Net interest income (GAAP)

$           12,116

$           11,540

$           12,099


$           23,656

$           24,912

FTE adjustment

37

37

56


74

113

Net interest income (FTE) (non-GAAP)

$           12,153

$           11,577

$           12,155


$           23,730

$           25,025

Noninterest income (GAAP)

3,471

3,222

3,477


6,693

6,898

Total revenue (FTE) (non-GAAP)

$           15,624

$           14,799

$           15,632


$           30,423

$           31,923

Noninterest expense (GAAP)

12,324

12,703

13,147


25,027

25,315








Average earning assets

$      1,342,747

$      1,342,081

$      1,322,886


$      1,342,413

$      1,307,121

Net interest margin

3.62 %

3.45 %

3.67 %


3.53 %

3.84 %

Net interest margin (FTE) (non-GAAP)

3.63 %

3.46 %

3.69 %


3.55 %

3.86 %








Efficiency ratio

79.07 %

86.05 %

84.41 %


82.46 %

79.58 %

Efficiency ratio (FTE) (non-GAAP)

78.88 %

85.83 %

84.10 %


82.26 %

79.30 %








Tangible Book Value Per Share







Total Stockholders Equity (GAAP)

$         109,996

$         107,630

$         102,542




Less goodwill

1,650

1,650

1,650




Less core deposit intangible, net

165

176

209




Tangible Stockholders Equity (non-GAAP)

$         108,181

$         105,804

$         100,683











Shares issued and outstanding

5,077,525

5,040,391

5,037,275











Book value per share

$             21.66

$             21.35

$             20.36




Tangible book value per share (non-GAAP)

$             21.31

$             20.99

$             19.99











 

Old Point Financial Corporation (Nasdaq: OPOF) is the parent company of Old Point National Bank and Old Point Trust & Financial Services, N.A., which serve the Hampton Roads and Richmond regions of Virginia as well as operate a mortgage loan production office in Charlotte, North Carolina. Old Point National Bank is a locally owned and managed community bank which offers a wide range of financial services from checking, insurance, and mortgage products to comprehensive commercial lending and banking products and services. Old Point Trust is the largest wealth management services provider headquartered in Hampton Roads, Virginia, offering local asset management by experienced professionals. Additional information about the company is available at oldpoint.com.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/old-point-releases-second-quarter-2024-results-302207046.html

SOURCE Old Point Financial Corporation

FAQ

What was Old Point Financial 's (OPOF) net income for Q2 2024?

Old Point Financial (OPOF) reported net income of $2.5 million for the second quarter of 2024.

How did Old Point's (OPOF) Q2 2024 earnings compare to Q1 2024?

Old Point's Q2 2024 net income of $2.5 million was up from $1.7 million in Q1 2024, representing a 47.3% increase quarter-over-quarter.

What was Old Point Financial 's (OPOF) diluted EPS for Q2 2024?

Old Point Financial (OPOF) reported diluted earnings per share of $0.50 for the second quarter of 2024.

How did Old Point's (OPOF) net interest margin change in Q2 2024?

Old Point's net interest margin improved to 3.62% in Q2 2024, up from 3.45% in Q1 2024.

What cost-saving measures is Old Point Financial (OPOF) implementing?

Old Point is implementing cost-saving initiatives expected to reduce annual noninterest expense by approximately $5.0 million when fully implemented. They have incurred $550,000 in one-time costs so far, with an additional $350,000 expected.

Old Point Financial Corp

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