HAMPTON,
Va., July 27, 2023 /PRNewswire/ -- Old Point
Financial Corporation (the Company or Old Point) (NASDAQ "OPOF")
reported net income of $1.8 million
and earnings per diluted common share of $0.36 for the second quarter of 2023 compared to
net income of $1.9 million and
earnings per diluted common share of $0.37 for the second quarter of 2022. Net
income for the six months ended June 30,
2023 and 2022 was $4.9
million, or $0.97 earnings per
diluted common share, and $3.9
million, or $0.76 earnings per
diluted common share, respectively.
Robert Shuford, Jr., Chairman,
President and CEO of the Company and Old Point National Bank (the
Bank) said, "Old Point delivered solid operating results for the
first half of 2023 particularly considering the challenges facing
the banking industry. Like the banking industry in general, the
rapid interest rate increases over the last year and a half have
affected our results. The banking industry has faced significant
challenges in competing for customer deposits, and specifically
low-cost deposits. While our deposit base remains very seasoned and
diversified, we did meaningfully raise deposit rates to address
intense competition and retain and attract customers, causing our
overall funding costs to increase more than yields on interest
earning assets during the second quarter. These increased funding
costs will likely continue to impact our net interest margin and
net interest income into the future; however, Old Point's balance
sheet, based on core banking fundamentals of asset quality,
capital, and liquidity, remains very strong, providing a solid
foundation for execution of our forward-looking
strategies."
Highlights of the second quarter are as follows:
- Net loans held for investment grew $66.4
million, or 6.5%, from December 31,
2022 and $178.6 million, or
19.8% from June 30, 2022.
- Total deposits increased $72.7
million, or 6.3%, from December 31,
2022.
- Nonperforming assets were $1.4
million at June 30, 2023 down
from $4.6 million at June 30, 2022.
- Average earning assets of $1.3
billion for the quarter and six months ended June 30, 2023 grew $89.6
million, or 7.3%, and $67.5
million, or 5.4%, compared to the prior year comparative
periods, respectively.
- Average interest-bearing liabilities were $935.8 million for the quarter ended June 30, 2023, up $144.3
million or 18.2%, compared to the prior year comparative
period. For the six months ended June 30,
2023 and 2022, average interest-bearing liabilities were
$895.0 million and $792.1 million, respectively.
- Net interest margin (NIM) was 3.67% in the second quarter of
2023, compared to 4.02% in the first quarter of 2023 and 3.36% in
the second quarter of 2022. NIM on a fully tax-equivalent basis
(FTE) (non-GAAP) was 3.69% in the second quarter of 2023, 4.04% in
the linked quarter and 3.38% in the second quarter of 2022.
- Net interest income for the second quarter of 2023, increased
$1.8 million, or 17.2% compared to
the second quarter of 2022, and decreased $714 thousand, or 5.6%, compared to the first
quarter of 2023. For the six months ended June 30, 2023 and 2022, net interest income was
$24.9 million and $20.0 million, respectively.
- Liquidity as of June 30, 2023,
defined as cash and due from banks, unpledged securities, and
available secured borrowing capacity, totaled $391.3 million, representing 27.1% of total
assets.
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, 2023 increased by $87.7 million from December 31, 2022. Net loans held for investment
increased $66.4 million, or 6.5% from
December 31, 2022 to $1.1 billion at June 30,
2023, driven by diversified loan growth in the following
segments: construction, land development, and other land loans of
$16.6 million, residential real
estate of $19.4 million, commercial
real estate of $11.4 million, and
indirect consumer automobile of $18.9
million. Securities available-for-sale, at fair value,
decreased $15.0 million from
December 31, 2022 to $210.6 million at June 30,
2023.
Total deposits of $1.2 billion as
of June 30, 2023 increased
$72.7 million, or 6.3%, from
December 31, 2022.
Noninterest-bearing deposits decreased $73.9
million, or 17.7%, savings deposits increased $41.8 million, or 7.1%, and time deposits
increased $104.8 million, or 68.6%,
driven by depositors seeking increased yields. Decreases in
overnight repurchase agreements and federal funds purchased were
offset by an increase in short-term Federal Home Loan Bank
advances, resulting in a net increase of $11.5 million to $74.0
million at June 30, 2023 from
$62.5 million at December 31, 2022, as the Company used additional
borrowings to help fund loan growth during the first six months of
2023.
The Company's total stockholders' equity at June 30, 2023 increased $3.8 million, or 3.9%, from December 31, 2022 to $102.5 million. The increase was primarily
related to retained earnings and improvement in 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 the adoption of CECL. The unrealized loss in
market value of securities available-for-sale was a result of
rising market interest rates 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 11.07% at June 30,
2023 as compared to 10.82% at December 31, 2022. The Bank's leverage ratio was
9.64% at June 30, 2023 as compared to
9.43% at December 31, 2022.
Non-performing assets (NPAs) totaled $1.4
million as of June 30, 2023
compared to $4.6 million as of
June 30, 2022 and $1.7 million at March 31,
2023. NPAs as a percentage of total assets was 0.10% at
June 30, 2023, compared to 0.35% at
June 30, 2022 and 0.12% at
March 31, 2023. Non-accrual loans
were $235 thousand at June 30, 2023, a decrease from $4.1 million at June 30,
2022 and $980 thousand at
March 31, 2023. The decrease in
non-accrual loans from the prior year comparative quarter was
related to the resolution of one large commercial relationship.
Loans past due 90 days or more and still accruing interest
increased $486 thousand to
$1.2 million at June 30, 2023 from $722
thousand at March 31, 2023 and
$565 thousand at June 30, 2022. The increase over the linked
quarter is due primarily to one commercial credit which is
government guaranteed with no expectation of loss.
The Company recognized a provision for credit losses of
$361 thousand during the second
quarter of 2023 compared to $376
thousand during the first quarter of 2023 and $570 thousand during the second quarter of 2022.
The provision for credit losses for the second quarter of 2023
reflected a provision of $310
thousand for loans and a provision for unfunded commitments
of $51 thousand. The allowance for
credit losses (ACL) at June 30, 2023
was $11.9 million and included an
allowance for credit losses on loans of $11.7 million and a reserve for unfunded
commitments of $265 thousand. The
allowance for credit losses on loans as a percentage of loans held
for investment was 1.06% at June 30,
2023, compared to 1.07% at March 31,
2023 and 1.08% at June 30,
2022. Quarterly annualized net charge-offs as a percentage
of average loans outstanding was 0.08% for the second quarter of
2023, compared to 0.09% for the second quarter of 2022 and 0.07%
for the first quarter of 2023. As of June
30, 2023, asset quality remains very strong with no
significant changes in the overall credit quality of the loan
portfolio. 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,
provision for credit losses may increase in future
periods.
Net Interest Income
Net interest income for the second
quarter of 2023 was $12.1 million, a
decrease of $714 thousand, or 5.6%,
from the prior quarter and an increase of $1.8 million, or 17.2%, from the second quarter
of 2022. The decrease from the linked quarter is due primarily to
higher average interest-bearing liabilities at higher average rates
partially offset by higher average earning asset balances at higher
average yields. The increase from the prior-year comparative
quarter was due primarily to: (i) deployment of lower yielding cash
to fund growth in higher yielding loans and investments; (ii)
higher average yields on earning asset balances due to the effect
of rising market interest rates; partially offset by (iii) higher
average interest-bearing liabilities at higher average rates. For
the six months ended June 30, 2023
and 2022, net interest income was $24.9
million and $20.0 million,
respectively. The increase from the prior-year comparative period
was due to higher average earning assets at higher average earning
yields, partially offset by higher average-interest bearing
liabilities at higher average rates.
The Net Interest Margin (NIM) for the second quarter of
2023 was 3.67%, a decrease from 4.02% for the linked quarter and an
increase from 3.36% for the prior year quarter. On a fully
tax-equivalent basis (FTE) (non-GAAP), NIM was 3.69%, compared to
4.04% for the first quarter of 2023 and 3.38% for the second
quarter of 2022. Average earning asset balances for the
second quarter increased $89.6
million period-over-period with yields on average earning
assets increasing 134 basis points due to deployment of liquidity
into higher earning assets and the effects of the rising interest
rate environment. Average loans increased $212.1 million, or 24.2%, and $202.1 million, or 23.2%, for the second quarter
and first six months of 2023, respectively, compared to the same
periods of 2022. Average loan yields were higher for the
second quarter and first six months of 2023 compared to the same
periods of 2022 due primarily to the effects of rising interest
rates. Average yields on loans and investment securities were 89
basis points and 129 basis points higher in the second quarter of
2023 when compared to the same period in 2022 due primarily to the
effects of rising interest rates. Average interest-bearing
liabilities increased $144.3 million
for the second quarter of 2023 compared to the same period of 2022,
with costs increasing 143 basis points. The higher interest
cost on liabilities was due to higher interest rates on money
market and time deposits as well as additional borrowing costs
associated with federal funds purchased and short term FHLB
advances during the period to help fund loan growth. During the
first six months of 2023, average earning assets and average
interest-bearing liabilities increased $67.5
million and $102.9 million,
over the 2022 comparative period, respectively.
During 2022 and continuing into 2023, market interest rates
increased, and while the Company expects asset yields to continue
to rise, the cost of funds is expected to rise at a faster pace.
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 2023 as well as the second quarter of 2022, compared to
$3.4 million for the first quarter of
2023. Increases during the second quarter of 2023 in fiduciary and
asset management fees, service charges on deposit accounts,
mortgage banking income, and other operating income were partially
offset by a decrease in other service charges, commissions and fees
compared to the linked quarter. Although fiduciary and asset
management fees, service charges on deposit accounts, and
bank-owned life insurance income increased compared to the prior
year quarter, these increases were offset primarily by lower other
service charges, commissions and fees and other operating income,
resulting in a slight decline in noninterest income for the second
quarter of 2023 when compared to the prior year quarter.
Noninterest income for the six months ended June 30, 2023 decreased $117 thousand to $6.9
million compared to the six months ended June 30, 2022. The decrease in mortgage banking
income for the fourth quarter of 2022 and during 2023 was due to
declines in volume of mortgage originations attributable to changes
in mortgage market conditions; although, mortgage banking income
did increase from the first quarter of 2023 to the second quarter
of 2023. Gains on sales of fixed assets of $200 thousand and losses on sales of
available-for-sale securities and repossessed assets of
$164 thousand and $69 thousand, respectively, were recognized
during the second quarter of 2023 which impacted the quarterly and
year-to-date comparatives and were not repeated.
Noninterest Expense
Noninterest expense totaled
$13.1 million for the second quarter
of 2023 compared to $12.2 million for
the first quarter of 2023 and $11.1
million for the second quarter of 2022. The increase from
the linked quarter of $979 thousand
was primarily due to decreases in customer development and ATM and
other losses offset by increases in all other noninterest expense
areas. The increase over the prior year quarter was primarily
driven by increased salary and employee benefit expense, occupancy
and equipment, data processing, professional services and other
operating expenses. The increase in salary and employee
benefits was primarily driven by the addition of revenue producing
officers, a return to normalized position vacancy levels, incentive
compensation expense, and lower deferred loan costs. The Company
completed negotiations with a major vendor relationship during the
fourth quarter of 2022 which began reducing certain existing cost
structures during the first six months of 2023 and will provide an
opportunity for operational leverage for future growth at fixed
cost levels. Several other major vendor contracts and relationships
continue to be assessed and negotiated as a key component of
efforts to reduce noninterest expense levels while improving
operational efficiency. For the six months ended June 30, 2023, noninterest expense increased
$3.5 million, or 16.1% over the six
months ended June 30, 2022, primarily
due to increases in salary and employee benefits, data processing,
ATM and other losses, and other operating expenses.
Capital Management and Dividends
For the second
quarter of 2023, the Company declared dividends of $0.14 per share, an increase of 7.7% over
dividends of $0.13 per share declared
in the second quarter of 2022. The dividend represents a payout
ratio of 39.0% of earnings per share for the second quarter of
2023. 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 equity increased $3.8
million at June 30, 2023,
compared to December 31, 2022, due
primarily to lower unrealized losses in the market value of
securities available-for-sale, which are recognized as a component
of accumulated other comprehensive loss, and net income, partially
offset by the adoption of CECL. 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 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, 2023, the book value
per share of the Company's common stock was $20.36, and tangible book value per share
(non-GAAP) was $19.99. 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 quarter and six months ended June 30, 2023, the Company has provided
supplemental financial measures on a 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 beliefs of Old Point's management, as well as estimates and
assumptions made by, and information available to, management, as
of the time such statements are made. 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
anticipated 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 strategic business initiatives, including vendor review
initiatives and new vendor relationships, and the future financial
impact of those initiatives; future financial performance; future
financial and economic conditions, industry conditions, and loan
demand; impacts of economic uncertainties; performance of the
investment and loan portfolios; revenue generation, efficiency
initiatives and expense controls; deposit growth; levels and
sources of liquidity; future levels of the allowance for loan
losses, charge-offs or net recoveries; levels of or changes in
interest rates; and statements that include other projections,
predictions, expectations, or beliefs about future events or
results, or otherwise are not statements of historical fact.
Factors that could have a material adverse effect on the
operations and future prospects of Old Point include, but are not
limited to, changes in or the effects of: interest rates and yields
and their 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; 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, an increase in
unemployment levels, and the impacts on customer and client
behavior; monetary and fiscal policies of the U.S. Government,
including policies of the U.S. Treasury and the Federal Reserve
Board 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 reactions thereto; the quality or the composition of the
loan or securities portfolios and changes therein; effectiveness of
expense control initiatives; an insufficient ACL; potential claims,
damages and fines related to litigation or government actions;
demand for loan products; future levels of government defense
spending, particularly in the Company's service area; uncertainty
over future federal spending or budget priorities, particularly in
connection with the Department of Defense, on the Company's service
area; 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,
geopolitical conflicts (such as the ongoing conflict between
Russia and Ukraine) or public health events (such as the
COVID-19 pandemic), and governmental and societal responses to the
foregoing, on, among other things, the Company's operations,
liquidity, and credit quality; 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 net interest margin; the U.S. government's guarantee of
repayment of small business loans purchased by Old Point; the level
of net charge-offs on loans; deposit flows; the Company's ability
to compete in the market for financial services and increased
competition from fintech companies; demand for financial services
in Old Point's service area; technological risks and developments;
implementation of new technologies; 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 other
service providers; cyber threats, attacks and events; reliance on
third parties for key services; the use of inaccurate assumptions
in management's modeling systems; the real estate market; changes
in accounting principles, standards, policies guidelines, and
interpretations, and the related impact on the Company's financial
statements; changes in management; 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, 2022, 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, and 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.
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 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 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 share data)
|
2023
|
2022
|
|
(unaudited)
|
|
Assets
|
|
|
|
|
|
Cash and due from
banks
|
$
21,262
|
$
15,670
|
Interest-bearing due
from banks
|
32,092
|
3,580
|
Federal funds
sold
|
809
|
-
|
Cash and cash
equivalents
|
54,163
|
19,250
|
Securities
available-for-sale, at fair value
|
210,561
|
225,518
|
Restricted securities,
at cost
|
4,559
|
3,434
|
Loans held for
sale
|
1,017
|
421
|
Loans, net
|
1,082,965
|
1,016,559
|
Premises and equipment,
net
|
30,403
|
31,008
|
Premises and equipment,
held for sale
|
344
|
987
|
Bank-owned life
insurance
|
34,563
|
34,049
|
Goodwill
|
1,650
|
1,650
|
Core deposit
intangible, net
|
209
|
231
|
Other assets
|
22,625
|
22,228
|
Total assets
|
$
1,443,059
|
$ 1,355,335
|
|
|
|
Liabilities & Stockholders'
Equity
|
|
|
|
|
|
Deposits:
|
|
|
Noninterest-bearing
deposits
|
$ 344,696
|
$
418,582
|
Savings
deposits
|
626,285
|
584,527
|
Time
deposits
|
257,734
|
152,910
|
Total
deposits
|
1,228,715
|
1,156,019
|
Overnight repurchase
agreements
|
4,500
|
4,987
|
Federal funds
purchased
|
-
|
11,378
|
Federal Home Loan Bank
advances
|
69,450
|
46,100
|
Long term
borrowings
|
29,603
|
29,538
|
Accrued expenses and
other liabilities
|
8,249
|
8,579
|
Total
liabilities
|
1,340,517
|
1,256,601
|
|
|
|
Stockholders'
equity:
|
|
|
Common stock, $5 par
value, 10,000,000 shares authorized; 5,037,275 and 5,064,236 shares
outstanding (includes 59,999 and 46,092 of nonvested restricted
stock, respectively)
|
24,886
|
24,761
|
Additional paid-in
capital
|
16,777
|
16,593
|
Retained
earnings
|
80,636
|
78,147
|
Accumulated other
comprehensive (loss) income, net
|
(19,757)
|
(20,767)
|
Total stockholders'
equity
|
102,542
|
98,734
|
Total liabilities and
stockholders' equity
|
$
1,443,059
|
$ 1,355,335
|
Old Point Financial Corporation and
Subsidiaries
|
|
|
|
|
|
|
Consolidated
Statements of Income (unaudited)
|
Three Months
Ended
|
|
Six Months
Ended
|
(dollars in thousands,
except per share data)
|
Jun. 30,
2023
|
Mar. 31,
2023
|
Jun. 30,
2022
|
|
Jun. 30,
2023
|
Jun. 30,
2022
|
|
|
|
|
|
|
|
Interest and Dividend Income:
|
|
|
|
|
|
|
Loans, including
fees
|
$
14,185
|
$
13,041
|
$
9,483
|
|
$
27,226
|
$
18,667
|
Due from
banks
|
93
|
64
|
208
|
|
157
|
281
|
Federal funds
sold
|
9
|
6
|
6
|
|
15
|
7
|
Securities:
|
|
|
|
|
|
|
Taxable
|
1,772
|
1,764
|
1,123
|
|
3,536
|
2,112
|
Tax-exempt
|
209
|
212
|
251
|
|
421
|
460
|
Dividends and interest
on all other securities
|
79
|
66
|
14
|
|
145
|
28
|
Total interest and
dividend income
|
16,347
|
15,153
|
11,085
|
|
31,500
|
21,555
|
|
|
|
|
|
|
|
Interest Expense:
|
|
|
|
|
|
|
Checking and savings
deposits
|
1,569
|
854
|
148
|
|
2,423
|
324
|
Time
deposits
|
1,419
|
537
|
320
|
|
1,956
|
681
|
Federal funds
purchased, securities sold under
|
|
|
|
|
|
|
agreements to
repurchase and other borrowings
|
2
|
37
|
1
|
|
39
|
2
|
Federal Home Loan Bank
advances
|
963
|
617
|
-
|
|
1,580
|
-
|
Long term
borrowings
|
295
|
295
|
295
|
|
590
|
590
|
Total interest
expense
|
4,248
|
2,340
|
764
|
|
6,588
|
1,597
|
Net interest
income
|
12,099
|
12,813
|
10,321
|
|
24,912
|
19,958
|
Provision for credit
losses
|
361
|
376
|
570
|
|
737
|
671
|
Net interest income
after provision for credit losses
|
11,738
|
12,437
|
9,751
|
|
24,175
|
19,287
|
|
|
|
|
|
|
|
Noninterest Income:
|
|
|
|
|
|
|
Fiduciary and asset
management fees
|
1,154
|
1,116
|
1,061
|
|
2,270
|
2,133
|
Service charges on
deposit accounts
|
793
|
753
|
761
|
|
1,546
|
1,483
|
Other service charges,
commissions and fees
|
1,027
|
1,109
|
1,143
|
|
2,136
|
2,196
|
Bank-owned life
insurance income
|
259
|
254
|
195
|
|
513
|
426
|
Mortgage banking
income
|
112
|
95
|
113
|
|
207
|
333
|
(Loss) on sale of
available-for-sale securities, net
|
(164)
|
-
|
-
|
|
(164)
|
-
|
(Loss) on sale of
repossessed assets
|
(69)
|
-
|
-
|
|
(69)
|
-
|
Gain on sale of fixed
assets
|
200
|
-
|
-
|
|
200
|
-
|
Other operating
income
|
165
|
94
|
227
|
|
259
|
444
|
Total noninterest
income
|
3,477
|
3,421
|
3,500
|
|
6,898
|
7,015
|
|
|
|
|
|
|
|
Noninterest Expense:
|
|
|
|
|
|
|
Salaries and employee
benefits
|
8,043
|
7,363
|
6,611
|
|
15,406
|
13,033
|
Occupancy and
equipment
|
1,255
|
1,195
|
1,143
|
|
2,450
|
2,304
|
Data
processing
|
1,264
|
1,179
|
1,151
|
|
2,443
|
2,241
|
Customer
development
|
101
|
113
|
69
|
|
214
|
162
|
Professional
services
|
756
|
673
|
638
|
|
1,429
|
1,268
|
Employee professional
development
|
289
|
234
|
275
|
|
523
|
539
|
Other taxes
|
234
|
213
|
212
|
|
447
|
425
|
ATM and other
losses
|
154
|
255
|
100
|
|
409
|
114
|
Other operating
expenses
|
1,051
|
943
|
891
|
|
1,994
|
1,717
|
Total noninterest
expense
|
13,147
|
12,168
|
11,090
|
#
|
25,315
|
21,803
|
Income before income
taxes
|
2,068
|
3,690
|
2,161
|
#
|
5,758
|
4,499
|
Income tax
expense
|
266
|
607
|
269
|
|
873
|
576
|
Net income
|
$
1,802
|
$
3,083
|
$
1,892
|
|
$
4,885
|
$
3,923
|
|
|
|
|
|
|
|
Basic Earnings per Common
Share:
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
5,023,305
|
4,999,887
|
5,086,957
|
|
5,011,481
|
5,136,380
|
Net income per share of
common stock
|
$
0.36
|
$
0.62
|
$
0.37
|
|
$
0.97
|
$
0.76
|
|
|
|
|
|
|
|
Diluted Earnings per Common
Share:
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
5,023,603
|
5,000,020
|
5,087,038
|
|
5,011,697
|
5,136,459
|
Net income per share of
common stock
|
$
0.36
|
$
0.62
|
$
0.37
|
|
$
0.97
|
$
0.76
|
|
|
|
|
|
|
|
Cash Dividends Declared per
Share:
|
$
0.14
|
$
0.14
|
$
0.13
|
|
$
0.28
|
$
0.26
|
Old Point Financial Corporation and
Subsidiaries
|
|
|
|
|
Average Balance Sheets, Net Interest Income And
Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarters ended June 30,
|
(unaudited)
|
2023
|
2022
|
|
|
Interest
|
|
|
Interest
|
|
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
(dollars in
thousands)
|
Balance
|
Expense
|
Rate**
|
Balance
|
Expense
|
Rate**
|
ASSETS
|
|
|
|
|
|
|
Loans*
|
$ 1,088,723
|
$ 14,185
|
5.23 %
|
$
876,575
|
$
9,495
|
4.34 %
|
Investment
securities:
|
|
|
|
|
|
|
Taxable
|
183,278
|
1,772
|
3.88 %
|
196,880
|
1,123
|
2.29 %
|
Tax-exempt*
|
37,851
|
265
|
2.81 %
|
43,471
|
318
|
2.93 %
|
Total investment
securities
|
221,129
|
2,037
|
3.69 %
|
240,351
|
1,441
|
2.40 %
|
Interest-bearing due
from banks
|
7,510
|
93
|
4.96 %
|
111,091
|
208
|
0.75 %
|
Federal funds
sold
|
718
|
9
|
4.88 %
|
3,923
|
6
|
0.61 %
|
Other
investments
|
4,806
|
79
|
6.68 %
|
1,389
|
14
|
4.20 %
|
Total earning
assets
|
1,322,886
|
$ 16,403
|
4.97 %
|
1,233,329
|
$ 11,164
|
3.63 %
|
Allowance for credit
losses
|
(11,732)
|
|
|
(9,578)
|
|
|
Other non-earning
assets
|
106,738
|
|
|
97,156
|
|
|
Total assets
|
$ 1,417,892
|
|
|
$ 1,320,907
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Time and savings
deposits:
|
|
|
|
|
|
|
Interest-bearing
transaction accounts
|
$ 80,393
|
$
3
|
0.02 %
|
$ 72,125
|
$
3
|
0.01 %
|
Money market deposit
accounts
|
437,481
|
1,558
|
1.43 %
|
393,014
|
135
|
0.14 %
|
Savings
accounts
|
105,161
|
8
|
0.03 %
|
131,062
|
10
|
0.03 %
|
Time
deposits
|
200,951
|
1,419
|
2.83 %
|
161,939
|
320
|
0.79 %
|
Total time and savings
deposits
|
823,986
|
2,988
|
1.45 %
|
758,140
|
468
|
0.25 %
|
Federal funds
purchased, repurchase
|
|
|
|
|
|
|
agreements and other
borrowings
|
4,959
|
2
|
0.13 %
|
3,926
|
1
|
0.07 %
|
Federal Home Loan Bank
advances
|
77,255
|
963
|
4.93 %
|
-
|
-
|
0.00 %
|
Long term
borrowings
|
29,585
|
295
|
3.95 %
|
29,453
|
295
|
3.96 %
|
Total interest-bearing
liabilities
|
935,785
|
4,248
|
1.82 %
|
791,519
|
764
|
0.39 %
|
Demand
deposits
|
370,907
|
|
|
417,400
|
|
|
Other
liabilities
|
8,125
|
|
|
6,077
|
|
|
Stockholders'
equity
|
103,075
|
|
|
105,911
|
|
|
Total liabilities and
stockholders' equity
|
$ 1,417,892
|
|
|
$ 1,320,907
|
|
|
Net interest
margin*
|
|
$ 12,155
|
3.69 %
|
|
$ 10,400
|
3.38 %
|
|
*Computed on a fully
tax-equivalent basis (non-GAAP) using a 21% rate, adjusting
interest income
|
by $56 thousand
and $79 thousand for June 30, 2023 and 2022,
respectively.
|
**Annualized
|
Old Point Financial Corporation and
Subsidiaries
|
|
|
|
|
Average Balance Sheets, Net Interest Income And
Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June
30,
|
(unaudited)
|
2023
|
2022
|
|
|
Interest
|
|
|
Interest
|
|
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
(dollars in
thousands)
|
Balance
|
Expense
|
Rate**
|
Balance
|
Expense
|
Rate**
|
ASSETS
|
|
|
|
|
|
|
Loans*
|
$ 1,072,391
|
$ 27,226
|
5.12 %
|
$
870,271
|
$ 18,690
|
4.33 %
|
Investment
securities:
|
|
|
|
|
|
|
Taxable
|
184,776
|
3,536
|
3.86 %
|
199,396
|
2,112
|
2.14 %
|
Tax-exempt*
|
38,028
|
533
|
2.83 %
|
40,257
|
582
|
2.92 %
|
Total investment
securities
|
222,804
|
4,069
|
3.68 %
|
239,653
|
2,694
|
2.27 %
|
Interest-bearing due
from banks
|
7,056
|
157
|
4.48 %
|
124,272
|
281
|
0.46 %
|
Federal funds
sold
|
648
|
15
|
4.59 %
|
4,181
|
7
|
0.33 %
|
Other
investments
|
4,222
|
146
|
6.95 %
|
1,266
|
28
|
4.51 %
|
Total earning
assets
|
1,307,121
|
$ 31,613
|
4.88 %
|
1,239,643
|
$ 21,700
|
3.53 %
|
Allowance for credit
losses
|
(11,536)
|
|
|
(9,782)
|
|
|
Other non-earning
assets
|
105,630
|
|
|
95,485
|
|
|
Total assets
|
$ 1,401,215
|
|
|
$ 1,325,346
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Time and savings
deposits:
|
|
|
|
|
|
|
Interest-bearing
transaction accounts
|
$ 75,351
|
$
6
|
0.02 %
|
$ 73,619
|
$
5
|
0.01 %
|
Money market deposit
accounts
|
433,235
|
2,400
|
1.12 %
|
391,201
|
299
|
0.15 %
|
Savings
accounts
|
110,491
|
17
|
0.03 %
|
128,673
|
20
|
0.03 %
|
Time
deposits
|
174,902
|
1,956
|
2.26 %
|
164,882
|
681
|
0.83 %
|
Total time and savings
deposits
|
793,979
|
4,379
|
1.11 %
|
758,375
|
1,005
|
0.27 %
|
Federal funds
purchased, repurchase
|
|
|
|
|
|
|
agreements and other
borrowings
|
6,450
|
39
|
1.23 %
|
4,256
|
2
|
0.08 %
|
Federal Home Loan Bank
advances
|
65,009
|
1,580
|
4.90 %
|
-
|
-
|
0.00 %
|
Long term
borrowings
|
29,568
|
590
|
4.03 %
|
29,436
|
590
|
4.04 %
|
Total interest-bearing
liabilities
|
895,006
|
6,588
|
1.48 %
|
792,067
|
1,597
|
0.41 %
|
Demand
deposits
|
396,202
|
|
|
415,749
|
|
|
Other
liabilities
|
8,235
|
|
|
5,725
|
|
|
Stockholders'
equity
|
101,772
|
|
|
111,805
|
|
|
Total liabilities and
stockholders' equity
|
$ 1,401,215
|
|
|
$ 1,325,346
|
|
|
Net interest
margin*
|
|
$ 25,025
|
3.86 %
|
|
$ 20,103
|
3.27 %
|
|
*Computed on a fully
tax-equivalent basis (non-GAAP) using a 21% rate, adjusting
interest income
|
by $113 thousand
and $145 thousand for June 30, 2023 and 2022,
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)
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
Earnings per common
share, diluted
|
$
0.36
|
$
0.62
|
$
0.37
|
|
$ 0.97
|
$ 0.76
|
Return on average
assets (ROA)
|
0.51 %
|
0.90 %
|
0.57 %
|
|
0.70 %
|
0.60 %
|
Return on average
equity (ROE)
|
7.01 %
|
12.45 %
|
7.17 %
|
|
9.68 %
|
7.08 %
|
Net Interest Margin
(FTE) (non-GAAP)
|
3.69 %
|
4.04 %
|
3.38 %
|
|
3.86 %
|
3.27 %
|
Efficiency
ratio
|
84.41 %
|
74.95 %
|
80.24 %
|
|
79.58 %
|
80.83 %
|
Efficiency ratio (FTE)
(non-GAAP)
|
84.10 %
|
74.69 %
|
79.79 %
|
|
79.30 %
|
80.40 %
|
Book value per
share
|
20.36
|
20.52
|
19.97
|
|
|
|
Tangible Book Value per
share (non-GAAP)
|
19.99
|
20.14
|
19.60
|
|
|
|
Non-performing assets
(NPAs) / total assets
|
0.10 %
|
0.12 %
|
0.35 %
|
|
|
|
Annualized Net Charge
Offs / average total loans
|
0.08 %
|
0.07 %
|
0.09 %
|
|
|
|
Allowance for credit
losses on loans / total loans
|
1.06 %
|
1.07 %
|
1.08 %
|
|
|
|
Allowance for credit
losses / total loans
|
1.09 %
|
1.09 %
|
1.08 %
|
|
|
|
|
|
|
|
|
|
|
Non-Performing Assets
(NPAs)
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
235
|
$
980
|
$
4,074
|
|
|
|
Loans > 90 days past
due, but still accruing interest
|
1,208
|
722
|
565
|
|
|
|
Other real estate
owned
|
-
|
-
|
-
|
|
|
|
Total non-performing
assets
|
$
1,443
|
$
1,702
|
$
4,639
|
|
|
|
|
|
|
|
|
|
|
Other Selected
Numbers
|
|
|
|
|
|
|
Loans, net
|
$
1,082,965
|
$
1,069,714
|
$
904,376
|
|
|
|
Deposits
|
1,228,715
|
1,199,615
|
1,172,994
|
|
|
|
Stockholders'
equity
|
102,542
|
102,598
|
101,150
|
|
|
|
Total assets
|
1,443,059
|
1,416,151
|
1,314,884
|
|
|
|
Loans charged off
during the quarter, net of recoveries
|
210
|
179
|
194
|
|
|
|
Quarterly average
loans
|
1,088,723
|
1,055,878
|
876,575
|
|
|
|
Quarterly average
assets
|
1,417,892
|
1,384,353
|
1,320,907
|
|
|
|
Quarterly average
earning assets
|
1,322,886
|
1,291,181
|
1,233,329
|
|
|
|
Quarterly average
deposits
|
1,194,893
|
1,185,417
|
1,175,540
|
|
|
|
Quarterly average
equity
|
103,075
|
100,453
|
105,911
|
|
|
|
Old Point Financial Corporation and
Subsidiaries
|
|
|
|
|
Reconciliation of
Certain Non-GAAP Financial Measures (unaudited)
|
|
|
|
|
(dollars in thousands,
except per share data)
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Jun. 30,
2023
|
Mar. 31,
2023
|
Jun. 30,
2022
|
|
Jun. 30,
2023
|
Jun. 30,
2022
|
|
|
|
|
|
|
|
Fully Taxable Equivalent Net Interest
Income
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
$
12,099
|
$
12,813
|
$
10,321
|
|
$
24,912
|
$
19,958
|
FTE
adjustment
|
56
|
57
|
79
|
|
113
|
145
|
Net interest income
(FTE) (non-GAAP)
|
$
12,155
|
$
12,870
|
$
10,400
|
|
$
25,025
|
$
20,103
|
Noninterest income
(GAAP)
|
3,477
|
3,421
|
3,500
|
|
6,898
|
7,015
|
Total revenue (FTE)
(non-GAAP)
|
$
15,632
|
$
16,291
|
$
13,900
|
|
$
31,923
|
$
27,118
|
Noninterest expense
(GAAP)
|
13,147
|
12,168
|
11,090
|
|
25,315
|
21,803
|
|
|
|
|
|
|
|
Average earning
assets
|
$
1,322,886
|
$
1,291,181
|
$
1,233,329
|
|
$
1,307,121
|
$
1,239,643
|
Net interest
margin
|
3.67 %
|
4.02 %
|
3.36 %
|
|
3.84 %
|
3.25 %
|
Net interest margin
(FTE) (non-GAAP)
|
3.69 %
|
4.04 %
|
3.38 %
|
|
3.86 %
|
3.27 %
|
|
|
|
|
|
|
|
Efficiency
ratio
|
84.41 %
|
74.95 %
|
80.24 %
|
|
79.58 %
|
80.83 %
|
Efficiency ratio (FTE)
(non-GAAP)
|
84.10 %
|
74.69 %
|
79.79 %
|
|
79.30 %
|
80.40 %
|
|
|
|
|
|
|
|
Tangible Book Value Per Share
|
|
|
|
|
|
|
Total Stockholders
Equity (GAAP)
|
$ 102,542
|
$
102,598
|
$ 101,150
|
|
|
|
Less
goodwill
|
1,650
|
1,650
|
1,650
|
|
|
|
Less core deposit
intangible
|
209
|
220
|
253
|
|
|
|
Tangible Stockholders
Equity (non-GAAP)
|
$ 100,683
|
$
100,728
|
$
99,247
|
|
|
|
|
|
|
|
|
|
|
Shares issued and
outstanding
|
5,037,275
|
5,000,331
|
5,064,236
|
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
$
20.36
|
$
20.52
|
$
19.97
|
|
|
|
Tangible book value per
share (non-GAAP)
|
$
19.99
|
$
20.14
|
$
19.60
|
|
|
|
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SOURCE Old Point Financial Corporation