HAMPTON,
Va., Jan. 30, 2024 /PRNewswire/ -- Old Point
Financial Corporation (the "Company" or "Old Point") (NASDAQ
"OPOF") reported net income of $1.5
million and diluted earnings per common share of
$0.29 for the fourth quarter of 2023,
compared to net income of $2.6
million and diluted earnings per common share of
$0.53 for the fourth quarter of 2022.
Net income for the year ended December 31,
2023, was $7.7 million with
diluted earnings per common share of $1.54, compared to $9.1
million of net income with diluted earnings per common share
of $1.80 for the year ended
December 31, 2022.
Robert Shuford, Jr., Chairman,
President and CEO of the Company and Old Point National Bank (the
Bank) commented, "2023 was a difficult year due to the challenges
within the banking industry, however Old Point demonstrated its
strength and stability by delivering strong operating results while
growing both earning assets and deposits. Our focus continues to be
on maintaining a strong balance sheet and ensuring our asset
quality, capital levels, and liquidity remain strong. Even with the
uncertainties of 2024 and beyond, we believe the Company is well
positioned to grow our business and deliver value to our
shareholders."
Highlights of the fourth quarter and year ended December 31, 2023, are as follows:
- Total assets were $1.4 billion at
December 31, 2023, increasing by
$91.0 million or 6.7% from
December 31, 2022. Net loans held for
investment were $1.1 billion at
December 31, 2023, growing
$51.5 million, or 5.1%, from
December 31, 2022.
- Total deposits were $1.2 billion
at December 31, 2023, up $74.4 million, or 6.4%, from December 31, 2022.
- Average earning assets were $1.4
and $1.3 billion for the quarter and
year ended December 31, 2023, growing
$129.1 million, or 10.4%, and
$100.2 million, or 8.1%, compared to
the prior year comparative periods, respectively.
- Average interest-bearing liabilities were $999.4 and $943.8
million for the quarter and year ended December 31, 2023, growing $200.7 million or 25.1%, and $154.2 million or 19.5% compared to the prior
year comparative periods, respectively.
- Net interest margin (NIM) was 3.45% in the fourth quarter of
2023, compared to 3.33% in the third quarter of 2023 and 4.14% in
the fourth quarter of 2022. NIM on a fully tax-equivalent basis
(FTE) (non-GAAP) was 3.46% in the fourth quarter of 2023, 3.35% in
the linked quarter and 4.17% in the fourth quarter of 2022.
- Net interest income for the fourth quarter of 2023, decreased
$1.0 million, or 8.1% compared to the
fourth quarter of 2022, and increased $435
thousand, or 3.8%, compared to the third quarter of 2023.
For the years ended December 31,
2023, and 2022, net interest income was $48.2 million and $44.4
million, respectively.
- Liquidity as of December 31,
2023, defined as cash and due from banks, unpledged
securities, and available secured borrowing capacity, totaled
$342.5 million, representing 23.7% 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 December 31, 2023, increased by $91.0 million, or 6.7% from December 31, 2022. Net loans held for investment
increased $51.5 million, or 5.1% from
December 31, 2022, to $1.1 billion at December
31, 2023, driven primarily by growth in construction and
land development, residential real estate, commercial real estate,
and consumer loans segments. Securities available-for-sale, at fair
value, decreased $21.2 million from
December 31, 2022, to $204.3 million at December
31, 2023, due primarily to the sales and maturities of
certain securities.
Total deposits of $1.2 billion as
of December 31, 2023, increased
$74.4 million, or 6.4%, from
December 31, 2022.
Noninterest-bearing deposits decreased $86.6
million, or 20.7%, savings deposits increased $71.2 million, or 12.2%, and time deposits
increased $89.8 million, or 58.7%,
driven by depositors seeking increased yields. Decreases in
overnight repurchase agreements and federal funds purchased were
offset by an increase in Federal Home Loan Bank advances, resulting
in a net increase of $9.3 million to
$71.8 million at December 31, 2023 from $62.5 million at December
31, 2022, as the Company used additional borrowings to help
fund loan growth during the year ended December 31, 2023.
The Company's total stockholders' equity at December 31, 2023 increased $8.0 million, or 8.1%, from December 31, 2022 to $106.8 million. The increase was primarily
related to current year earnings and an increase in the market
value of investment securities resulting in lower unrealized losses
in securities available-for-sale, which are recorded as a component
of accumulated other comprehensive loss, partially offset by
dividends paid and the adoption of the Current Expected Credit Loss
("CECL") standard related to the calculation of expected credit
losses. The unrealized loss in market value of securities
available-for-sale was a result of rising market interest rates
since the securities were purchased 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 11.45% at December 31,
2023, as compared to 10.80% at December 31, 2022. The Bank's leverage ratio was
9.46% at December 31, 2023, as
compared to 9.43% at December 31,
2022.
Non-performing assets (NPAs) totaled $2.2
million as of December 31,
2023, compared to $2.1 million
as of December 31, 2022, and
$2.7 million at September 30, 2023. NPAs as a percentage of total
assets was 0.15% at December 31,
2022, and 2023 compared to 0.19% at September 30, 2023. Non-accrual loans were
$403 thousand at December 31, 2023, a decrease from $1.9 million and $1.2
million at September 30, 2023,
and December 31, 2022, respectively.
The decrease in non-accrual loans from the linked quarter and prior
year comparative quarter was related to the resolution of a large
commercial relationship that began performing in the fourth
quarter. Loans past due 90 days or more and still accruing interest
increased from the linked quarter and prior year comparative
quarter by $983 and $940 thousand, respectively. The increase over
the linked quarter and prior year comparative quarter is due to the
increased delinquency of loans in the consumer automobile
segment.
The Company recognized a provision for credit losses of
$1.4 million during the fourth
quarter of 2023 compared to $505
thousand during the third quarter of 2023 and $633 thousand during the fourth quarter of 2022.
The provision for credit losses for the fourth quarter of 2023
includes a recovery of unfunded commitments of $56 thousand. The allowance for credit losses
(ACL) at December 31, 2023, was
$12.4 million and included an
allowance for credit losses on loans of $12.2 million and a reserve for unfunded
commitments of $236 thousand. The
allowance for credit losses on loans as a percentage of loans held
for investment was 1.13% at December 31,
2023, compared to 1.09% at September
30, 2023, and 1.02% at December 31,
2022. Quarterly annualized net charge-offs as a percentage
of average loans outstanding was 0.39% for the fourth quarter of
2023, compared to 0.09% for the third quarter of 2023 and 0.02% for
the fourth quarter of 2022. At December 31,
2023, asset quality remains 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. The increase to the
provision for credit losses in the fourth quarter of 2023 was to
replenish the allowance for net charge-offs during the quarter and
an increase in expected credit losses related to the consumer
automobile segment as reflected by increased delinquencies.
Net Interest Income
Net interest income for the fourth
quarter of 2023 was $11.9 million, an
increase of $435 thousand, or 3.8%,
from the prior quarter and a decrease of $1.0 million, or 8.1%, from the fourth quarter of
2022. The increase from the linked quarter is due primarily to
higher average earning asset balances at higher average yields
partially offset by higher average interest-bearing liabilities at
higher average rates. The decrease from the prior-year comparative
quarter is driven by higher average interest-bearing liabilities at
higher average rates partially offset by higher average earning
asset balances at higher average yields. For the years ended
December 31, 2023, and 2022, net
interest income was $48.2 million and
$44.4 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.
Net interest margin (NIM) for the fourth quarter of 2023 was
3.45%, an increase from 3.33% for the linked quarter and a decrease
from 4.14% for the prior year quarter. On a fully tax-equivalent
basis (FTE) (non-GAAP), NIM for the fourth quarter of 2023 was
3.46%, compared to 3.35% for the third quarter of 2023 and 4.17%
for the fourth quarter of 2022. Average earning asset balances for
the fourth quarter increased $129.1
million period-over-period with yields on average earning
assets increasing 66 basis points due to deployment of liquidity
into higher earning assets and the effects of the rising interest
rate environment. Average loans increased $82.4 million, or 8.2%, and $158.3 million, or 17.2%, for the fourth quarter
and year ended December 31, 2023,
respectively, compared to the same periods of 2022. Average loan
yields were higher for the fourth quarter and year ended
December 31, 2023, compared to the
same period of 2022 due primarily to the effects of
loans repricing to higher interest rates. Average yields on
loans and investment securities were 55 basis points and 78 basis
points higher in the fourth quarter of 2023 when compared to the
same period in 2022 due primarily to the effects of earning assets
repricing to higher yields. Average interest-bearing liabilities
increased $200.7 million for the
fourth quarter of 2023 compared to the same period of 2022, with
costs increasing 181 basis points. The higher interest cost on
liabilities was due to a shift towards money market and time
deposits in addition to higher interest rates on those deposits as
well as additional borrowing costs associated with FHLB advances
during the year ended December 31,
2023, to help fund loan growth. During the year ended
December 31, 2023, average earning
assets and average interest-bearing liabilities increased
$100.2 million and $154.2 million, over the 2022 comparative period,
respectively.
Beginning in 2022 and continuing in 2023, market interest rates
increased significantly, and while the Company expects asset yields
to continue to rise, the cost of funds is expected to continue to
rise as well. The extent to which rising interest rates will affect
the Company's NIM remains 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 fourth quarter
of 2023 as well as the third quarter of 2023, compared to
$3.1 million for the fourth quarter
of 2022. The increase over the prior year quarter was primarily
driven by the sale of the third-party administrator service line,
increases in fiduciary and asset management fees and having no
losses on the sale of available-for-sale securities, partially
offset by decreases in the gain on sale of fixed assets.
Noninterest income for the year ended December 31, 2023, increased $368 thousand to $13.9
million from $13.5 million
compared to the year ended December 31,
2022. This increase was driven primarily by the sale of the
third-party administrator service line, smaller losses on
available-for-sale securities partially offset by decreases in the
gain on sales of fixed assets.
Noninterest Expense
Noninterest expense totaled
$12.2 million for the fourth quarter
of 2023 compared to $12.9 million for
the third quarter of 2023 and $12.3
million for the fourth quarter of 2022. The decrease from
the linked quarter of $670 thousand
was primarily due to a decrease in salaries and employee benefits
related to an adjustment of prior quarters' recognition of
incentive compensation expense. The decrease of $76 thousand over the prior year quarter was
primarily driven by decreases to professional services and ATM and
other losses, partially offset by increases in data processing and
other operating expenses. For the year ended December 31, 2023, noninterest expense increased
$4.8 million, or 10.4% over the year
ended December 31, 2022, primarily
due to increases in salaries and employee benefits which was driven
by the addition of revenue producing officers and a return to
normalized position vacancy levels.
Capital Management and Dividends
For the fourth
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 fourth quarter of 2022. The dividend represents a payout
ratio of 47.6% of earnings per share for the fourth quarter of 2023
and 36.4% cumulatively for the year ended December 31, 2023. The Board of Directors of the
Company continually reviews the amount of cash dividends per share
and the resulting dividend payout ratio considering changes in
economic conditions, current and future capital requirements, and
expected future earnings.
Total equity increased $8.0
million during 2023, due primarily to $7.7 million of net income for the year and an
increase in the market value of investment securities resulting in
lower unrealized losses in securities available-for-sale, which are
recognized as a component of accumulated other comprehensive loss,
partially offset by dividends paid and 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 since purchased 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 December 31, 2023, the book
value per share of the Company's common stock was $21.19, and tangible book value per share
(non-GAAP) was $20.82. 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 year ended December 31, 2023, 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 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: future financial performance; future financial and
economic conditions, industry conditions, and loan demand; our
strategic focuses; impacts of economic uncertainties; performance
of the loan and securities 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 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 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
increase or volatility in mortgage interest rates, 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; 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;
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;
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,
supervisory and regulatory reactions thereto; the quality or the
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; Old Point's liquidity and
capital positions; the value of securities held in the Company's
investment portfolios; 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; 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
areas; 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 [and Israel and Hamas]) 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; demand for loan products
and the impact of changes in demand on loan growth; 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 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 performance of the
Company's dealer 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 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; the demand in the secondary residential mortgage loan
markets; expansion of the Company's product offerings; 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; 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, 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 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
|
December 31,
|
December 31,
|
(dollars in thousands,
except share data)
|
2023
|
2022
|
|
(unaudited)
|
|
Assets
|
|
|
|
|
|
Cash and due from
banks
|
$
14,731
|
$
15,670
|
Interest-bearing due
from banks
|
63,539
|
3,580
|
Federal funds
sold
|
489
|
-
|
Cash and cash
equivalents
|
78,759
|
19,250
|
Securities
available-for-sale, at fair value
|
204,278
|
225,518
|
Restricted securities,
at cost
|
5,176
|
3,434
|
Loans held for
sale
|
470
|
421
|
Loans, net
|
1,068,046
|
1,016,559
|
Premises and equipment,
net
|
29,913
|
31,008
|
Premises and equipment,
held for sale
|
344
|
987
|
Bank-owned life
insurance
|
35,088
|
34,049
|
Goodwill
|
1,650
|
1,650
|
Core deposit
intangible, net
|
187
|
231
|
Other assets
|
22,471
|
22,228
|
Total assets
|
$
1,446,382
|
$ 1,355,335
|
|
|
|
Liabilities &
Stockholders' Equity
|
|
|
|
|
|
Deposits:
|
|
|
Noninterest-bearing
deposits
|
$
331,992
|
$
418,582
|
Savings
deposits
|
655,694
|
584,527
|
Time
deposits
|
242,711
|
152,910
|
Total
deposits
|
1,230,397
|
1,156,019
|
Overnight repurchase
agreements
|
2,383
|
4,987
|
Federal funds
purchased
|
-
|
11,378
|
Federal Home Loan Bank
advances
|
69,450
|
46,100
|
Long term
borrowings
|
29,668
|
29,538
|
Accrued expenses and
other liabilities
|
7,706
|
8,579
|
Total
liabilities
|
1,339,604
|
1,256,601
|
|
|
|
Stockholders'
equity:
|
|
|
Common stock, $5 par
value, 10,000,000 shares authorized;
5,040,095 and 4,999,083 shares outstanding (includes 53,660
and 46,989 of nonvested restricted stock, respectively)
|
24,932
|
24,761
|
Additional paid-in
capital
|
17,099
|
16,593
|
Retained
earnings
|
82,277
|
78,147
|
Accumulated other
comprehensive loss, net
|
(17,530)
|
(20,767)
|
Total stockholders'
equity
|
106,778
|
98,734
|
Total liabilities and
stockholders' equity
|
$
1,446,382
|
$ 1,355,335
|
Old Point Financial
Corporation and Subsidiaries
|
|
|
|
|
|
|
Consolidated
Statements of Income (unaudited)
|
Three Months
Ended
|
|
Year Ended
|
(dollars in thousands,
except per share data)
|
Dec. 31,
2023
|
Sep. 30,
2023
|
Dec. 31,
2022
|
|
Dec. 31,
2023
|
Dec. 31,
2022
|
|
|
|
|
|
|
|
Interest and
Dividend Income:
|
|
|
|
|
|
|
Loans, including
fees
|
$
14,766
|
$
14,311
|
$
12,234
|
|
$
56,303
|
$
41,407
|
Due from
banks
|
1,072
|
838
|
65
|
|
2,067
|
598
|
Federal funds
sold
|
10
|
9
|
3
|
|
34
|
21
|
Securities:
|
|
|
|
|
|
|
Taxable
|
1,853
|
1,788
|
1,527
|
|
7,177
|
4,936
|
Tax-exempt
|
139
|
159
|
262
|
|
719
|
994
|
Dividends and interest
on all other securities
|
97
|
84
|
29
|
|
326
|
87
|
Total interest and
dividend income
|
17,937
|
17,189
|
14,120
|
|
66,626
|
48,043
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
Checking and savings
deposits
|
2,327
|
2,060
|
275
|
|
6,810
|
746
|
Time
deposits
|
2,645
|
2,456
|
410
|
|
7,057
|
1,403
|
Federal funds
purchased, securities sold under
|
|
|
|
|
|
|
agreements to
repurchase and other borrowings
|
1
|
-
|
66
|
|
40
|
69
|
Federal Home Loan Bank
advances
|
807
|
952
|
165
|
|
3,339
|
207
|
Long term
borrowings
|
296
|
295
|
295
|
|
1,181
|
1,180
|
Total interest
expense
|
6,076
|
5,763
|
1,211
|
|
18,427
|
3,605
|
Net interest
income
|
11,861
|
11,426
|
12,909
|
|
48,199
|
44,438
|
Provision for credit
losses
|
1,359
|
505
|
633
|
|
2,601
|
1,706
|
Net interest income
after provision for credit losses
|
10,502
|
10,921
|
12,276
|
|
45,598
|
42,732
|
|
|
|
|
|
|
|
Noninterest
Income:
|
|
|
|
|
|
|
Fiduciary and asset
management fees
|
1,350
|
1,012
|
1,011
|
|
4,632
|
4,097
|
Service charges on
deposit accounts
|
780
|
751
|
791
|
|
3,077
|
3,069
|
Other service charges,
commissions and fees
|
888
|
1,119
|
1,044
|
|
4,143
|
4,383
|
Bank-owned life
insurance income
|
262
|
263
|
256
|
|
1,038
|
909
|
Mortgage banking
income
|
82
|
144
|
78
|
|
433
|
497
|
Gain (loss) on sale of
available-for-sale securities, net
|
-
|
30
|
(1,870)
|
|
(134)
|
(1,870)
|
(Loss) on sale of
repossessed assets
|
-
|
-
|
-
|
|
(69)
|
-
|
Gain on sale of fixed
assets
|
20
|
-
|
1,690
|
|
220
|
1,690
|
Other operating
income
|
111
|
163
|
125
|
|
533
|
730
|
Total noninterest
income
|
3,493
|
3,482
|
3,125
|
|
13,873
|
13,505
|
|
|
|
|
|
|
|
Noninterest
Expense:
|
|
|
|
|
|
|
Salaries and employee
benefits
|
7,193
|
7,830
|
7,201
|
|
30,429
|
27,055
|
Occupancy and
equipment
|
1,198
|
1,241
|
1,232
|
|
4,889
|
4,720
|
Data
processing
|
1,267
|
1,300
|
1,183
|
|
5,010
|
4,630
|
Customer
development
|
175
|
159
|
175
|
|
548
|
473
|
Professional
services
|
599
|
636
|
758
|
|
2,664
|
2,673
|
Employee professional
development
|
222
|
257
|
222
|
|
1,002
|
991
|
Other taxes
|
252
|
251
|
212
|
|
950
|
849
|
ATM and other
losses
|
219
|
154
|
309
|
|
782
|
535
|
Other operating
expenses
|
1,086
|
1,053
|
995
|
|
4,133
|
3,729
|
Total noninterest
expense
|
12,211
|
12,881
|
12,287
|
|
50,407
|
45,655
|
Income before income
taxes
|
1,784
|
1,522
|
3,114
|
|
9,064
|
10,582
|
Income tax
expense
|
301
|
160
|
471
|
|
1,334
|
1,474
|
Net income
|
$
1,483
|
$
1,362
|
$
2,643
|
|
$
7,730
|
$
9,108
|
|
|
|
|
|
|
|
Basic Earnings per
Common Share:
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
5,039,064
|
5,037,558
|
4,998,173
|
|
5,025,006
|
5,071,130
|
Net income per share of
common stock
|
$
0.29
|
$
0.27
|
$
0.53
|
|
$
1.54
|
$
1.80
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share:
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
5,039,064
|
5,037,662
|
4,998,173
|
|
5,025,139
|
5,071,169
|
Net income per share of
common stock
|
$
0.29
|
$
0.27
|
$
0.53
|
|
$
1.54
|
$
1.80
|
|
|
|
|
|
|
|
Cash Dividends
Declared per Share:
|
$
0.14
|
$
0.14
|
$
0.13
|
|
$
0.56
|
$
0.52
|
Old Point Financial
Corporation and Subsidiaries
|
|
|
|
|
Average Balance
Sheets, Net Interest Income And Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarters
ended December 31,
|
(unaudited)
|
2023
|
2022
|
|
|
Interest
|
|
|
Interest
|
|
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
(dollars in
thousands)
|
Balance
|
Expense
|
Rate**
|
Balance
|
Expense
|
Rate**
|
ASSETS
|
|
|
|
|
|
|
Loans*
|
$ 1,082,059
|
$ 14,766
|
5.41 %
|
$
999,687
|
$ 12,235
|
4.86 %
|
Investment
securities:
|
|
|
|
|
|
|
Taxable
|
172,474
|
1,853
|
4.26 %
|
181,254
|
1,527
|
3.34 %
|
Tax-exempt*
|
26,193
|
176
|
2.67 %
|
44,526
|
331
|
2.95 %
|
Total investment
securities
|
198,667
|
2,029
|
4.05 %
|
225,780
|
1,858
|
3.27 %
|
Interest-bearing due
from banks
|
78,393
|
1,072
|
5.42 %
|
8,251
|
65
|
3.11 %
|
Federal funds
sold
|
777
|
10
|
5.11 %
|
262
|
3
|
3.68 %
|
Other
investments
|
5,176
|
97
|
7.43 %
|
2,024
|
29
|
5.96 %
|
Total earning
assets
|
1,365,072
|
$ 17,974
|
5.22 %
|
1,236,004
|
$ 14,190
|
4.56 %
|
Allowance for credit
losses
|
(11,784)
|
|
|
(10,247)
|
|
|
Other non-earning
assets
|
106,639
|
|
|
106,319
|
|
|
Total assets
|
$ 1,459,927
|
|
|
$ 1,332,076
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Time and savings
deposits:
|
|
|
|
|
|
|
Interest-bearing
transaction accounts
|
$
101,567
|
$
4
|
0.01 %
|
$ 85,661
|
$
3
|
0.01 %
|
Money market deposit
accounts
|
434,341
|
2,316
|
2.12 %
|
382,513
|
263
|
0.27 %
|
Savings
accounts
|
93,981
|
7
|
0.03 %
|
120,398
|
9
|
0.03 %
|
Time
deposits
|
268,234
|
2,645
|
3.91 %
|
153,967
|
410
|
1.06 %
|
Total time and savings
deposits
|
898,123
|
4,972
|
2.20 %
|
742,539
|
685
|
0.37 %
|
Federal funds
purchased, repurchase
|
|
|
|
|
|
|
agreements and other
borrowings
|
2,181
|
0
|
0.07 %
|
11,396
|
66
|
2.32 %
|
Federal Home Loan Bank
advances
|
69,450
|
807
|
4.61 %
|
15,284
|
165
|
4.21 %
|
Long term
borrowings
|
29,649
|
296
|
3.96 %
|
29,517
|
295
|
3.91 %
|
Total interest-bearing
liabilities
|
999,403
|
6,075
|
2.41 %
|
798,736
|
1,211
|
0.60 %
|
Demand
deposits
|
350,408
|
|
|
429,740
|
|
|
Other
liabilities
|
10,017
|
|
|
7,917
|
|
|
Stockholders'
equity
|
100,099
|
|
|
95,683
|
|
|
Total liabilities and
stockholders' equity
|
$ 1,459,927
|
|
|
$ 1,332,076
|
|
|
Net interest
margin*
|
|
$ 11,899
|
3.46 %
|
|
$ 12,979
|
4.17 %
|
|
|
|
|
|
|
|
*Computed on a fully
tax-equivalent basis (non-GAAP) using a 21% rate, adjusting
interest income
|
by $38 thousand
and $70 thousand for December 31, 2023 and 2022,
respectively.
|
|
|
**Annualized
|
|
|
|
|
Old Point Financial
Corporation and Subsidiaries
|
|
|
|
|
Average Balance
Sheets, Net Interest Income And Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended
December 31,
|
(unaudited)
|
2023
|
2022
|
|
|
Interest
|
|
|
Interest
|
|
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
(dollars in
thousands)
|
Balance
|
Expense
|
Rate**
|
Balance
|
Expense
|
Rate**
|
ASSETS
|
|
|
|
|
|
|
Loans*
|
$ 1,078,303
|
$ 56,305
|
5.22 %
|
$
919,990
|
$ 41,440
|
4.50 %
|
Investment
securities:
|
|
|
|
|
|
|
Taxable
|
179,576
|
7,177
|
4.00 %
|
192,639
|
4,936
|
2.56 %
|
Tax-exempt*
|
33,053
|
910
|
2.75 %
|
42,792
|
1,258
|
2.94 %
|
Total investment
securities
|
212,629
|
8,087
|
3.80 %
|
235,431
|
6,194
|
2.63 %
|
Interest-bearing due
from banks
|
38,746
|
2,067
|
5.33 %
|
75,111
|
598
|
0.80 %
|
Federal funds
sold
|
698
|
34
|
4.87 %
|
2,694
|
21
|
0.77 %
|
Other
investments
|
4,610
|
326
|
7.06 %
|
1,554
|
87
|
5.63 %
|
Total earning
assets
|
1,334,986
|
$ 66,819
|
5.01 %
|
1,234,780
|
$ 48,340
|
3.91 %
|
Allowance for credit
losses
|
(11,694)
|
|
|
(9,958)
|
|
|
Other nonearning
assets
|
105,759
|
|
|
99,272
|
|
|
Total assets
|
$ 1,429,051
|
|
|
$ 1,324,094
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Time and savings
deposits:
|
|
|
|
|
|
|
Interest-bearing
transaction accounts
|
$ 85,939
|
$
13
|
0.02 %
|
$ 78,167
|
$
10
|
0.01 %
|
Money market deposit
accounts
|
432,758
|
6,766
|
1.56 %
|
385,067
|
697
|
0.18 %
|
Savings
accounts
|
103,372
|
31
|
0.03 %
|
125,310
|
39
|
0.03 %
|
Time
deposits
|
220,674
|
7,057
|
3.20 %
|
159,889
|
1,403
|
0.88 %
|
Total time and savings
deposits
|
842,743
|
13,867
|
1.65 %
|
748,433
|
2,149
|
0.29 %
|
Federal funds
purchased, repurchase
|
|
|
|
|
|
|
agreements and other
borrowings
|
4,245
|
40
|
0.94 %
|
6,170
|
69
|
1.12 %
|
Federal Home Loan Bank
advances
|
67,248
|
3,339
|
4.97 %
|
5,606
|
207
|
3.69 %
|
Long term
borrowings
|
29,601
|
1,181
|
3.99 %
|
29,469
|
1,180
|
4.01 %
|
Total interest-bearing
liabilities
|
943,837
|
18,427
|
1.95 %
|
789,678
|
3,605
|
0.46 %
|
Demand
deposits
|
374,716
|
|
|
422,850
|
|
|
Other
liabilities
|
8,876
|
|
|
6,221
|
|
|
Stockholders'
equity
|
101,622
|
|
|
105,345
|
|
|
Total liabilities and
stockholders' equity
|
$ 1,429,051
|
|
|
$ 1,324,094
|
|
|
Net interest
margin*
|
|
$ 48,392
|
3.62 %
|
|
$ 44,735
|
3.62 %
|
|
|
|
|
|
|
|
*Computed on a fully
tax-equivalent basis (non-GAAP) using a 21% rate, adjusting
interest income
|
by $193 thousand
and $297 thousand for December 31, 2023 and 2022,
respectively.
|
|
|
**Annualized
|
|
|
|
|
Old Point Financial
Corporation and Subsidiaries
|
As of or for the
quarters ended,
|
|
For the years
ended,
|
Selected Ratios
(unaudited)
|
December 31,
|
September
30,
|
December 31,
|
|
December 31,
|
December 31,
|
(dollars in thousands,
except per share data)
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
Earnings per common
share, diluted
|
$
0.29
|
$
0.27
|
$
0.53
|
|
$
1.54
|
$
1.80
|
Return on average
assets (ROA)
|
0.40 %
|
0.37 %
|
0.79 %
|
|
0.54 %
|
0.69 %
|
Return on average
equity (ROE)
|
5.88 %
|
5.25 %
|
10.96 %
|
|
7.61 %
|
8.65 %
|
Net Interest Margin
(FTE) (non-GAAP)
|
3.46 %
|
3.35 %
|
4.17 %
|
|
3.62 %
|
3.62 %
|
Efficiency
ratio
|
79.53 %
|
86.40 %
|
76.63 %
|
|
81.21 %
|
78.79 %
|
Efficiency ratio (FTE)
(non-GAAP)
|
79.34 %
|
86.16 %
|
76.30 %
|
|
80.96 %
|
78.39 %
|
Book value per
share
|
21.19
|
19.75
|
19.75
|
|
|
|
Tangible Book Value per
share (non-GAAP)
|
20.82
|
19.39
|
19.37
|
|
|
|
Non-performing assets
(NPAs) / total assets
|
0.15 %
|
0.19 %
|
0.15 %
|
|
|
|
Annualized Net
Charge-Offs / average total loans
|
0.39 %
|
0.09 %
|
0.02 %
|
|
|
|
Allowance for credit
losses on loans / total loans
|
1.13 %
|
1.09 %
|
1.02 %
|
|
|
|
|
|
|
|
|
|
|
Non-Performing Assets
(NPAs)
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
403
|
$
1,918
|
$
1,243
|
|
|
|
Loans > 90 days past
due, but still accruing interest
|
1,780
|
797
|
840
|
|
|
|
Other real estate
owned
|
-
|
-
|
-
|
|
|
|
Total non-performing
assets
|
$
2,183
|
$
2,715
|
$
2,083
|
|
|
|
|
|
|
|
|
|
|
Other Selected
Numbers
|
|
|
|
|
|
|
Loans, net
|
$
1,068,046
|
$
1,070,834
|
$
1,016,559
|
|
|
|
Deposits
|
1,230,397
|
1,237,608
|
1,156,019
|
|
|
|
Stockholders'
equity
|
106,778
|
99,526
|
98,734
|
|
|
|
Total assets
|
1,446,382
|
1,447,063
|
1,355,335
|
|
|
|
Loans charged off
during the quarter, net of recoveries
|
1,053
|
237
|
40
|
|
|
|
Quarterly average
loans
|
1,082,059
|
1,086,180
|
999,687
|
|
|
|
Quarterly average
assets
|
1,459,927
|
1,452,939
|
1,332,076
|
|
|
|
Quarterly average
earning assets
|
1,365,072
|
1,359,721
|
1,236,004
|
|
|
|
Quarterly average
deposits
|
1,248,531
|
1,240,052
|
1,172,279
|
|
|
|
Quarterly average
equity
|
100,099
|
102,850
|
95,683
|
|
|
|
Old Point Financial
Corporation and Subsidiaries
|
|
|
|
|
Reconciliation of
Certain Non-GAAP Financial Measures (unaudited)
|
|
|
|
|
(dollars in thousands,
except per share data)
|
Three Months
Ended
|
|
Year Ended
|
|
Dec. 31,
2023
|
Sep. 30,
2023
|
Dec. 31,
2022
|
|
Dec. 31,
2023
|
Dec. 31,
2022
|
|
|
|
|
|
|
|
Fully Taxable
Equivalent Net Interest Income
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
$
11,861
|
$
11,426
|
$
12,909
|
|
$
48,199
|
$
44,438
|
FTE
adjustment
|
38
|
42
|
70
|
|
193
|
297
|
Net interest income
(FTE) (non-GAAP)
|
$
11,899
|
$
11,468
|
$
12,979
|
|
$
48,392
|
$
44,735
|
Noninterest income
(GAAP)
|
3,493
|
3,482
|
3,125
|
|
13,873
|
13,505
|
Total revenue (FTE)
(non-GAAP)
|
$
15,392
|
$
14,950
|
$
16,104
|
|
$
62,265
|
$
58,240
|
Noninterest expense
(GAAP)
|
12,211
|
12,881
|
12,287
|
|
50,407
|
45,655
|
|
|
|
|
|
|
|
Average earning
assets
|
$ 1,365,072
|
$ 1,359,721
|
$ 1,236,004
|
|
$ 1,334,986
|
$ 1,234,780
|
Net interest
margin
|
3.45 %
|
3.33 %
|
4.14 %
|
|
3.61 %
|
3.60 %
|
Net interest margin
(FTE) (non-GAAP)
|
3.46 %
|
3.35 %
|
4.17 %
|
|
3.62 %
|
3.62 %
|
|
|
|
|
|
|
|
Efficiency
ratio
|
79.53 %
|
86.40 %
|
76.63 %
|
|
81.21 %
|
78.79 %
|
Efficiency ratio (FTE)
(non-GAAP)
|
79.34 %
|
86.16 %
|
76.30 %
|
|
80.96 %
|
78.39 %
|
|
|
|
|
|
|
|
Tangible Book Value
Per Share
|
|
|
|
|
|
|
Total Stockholders
Equity (GAAP)
|
$
106,778
|
$
99,526
|
$
98,734
|
|
|
|
Less
goodwill
|
1,650
|
1,650
|
1,650
|
|
|
|
Less core deposit
intangible, net
|
187
|
198
|
231
|
|
|
|
Tangible Stockholders
Equity (non-GAAP)
|
$
104,941
|
$
97,678
|
$
96,853
|
|
|
|
|
|
|
|
|
|
|
Shares issued and
outstanding
|
5,040,095
|
5,038,066
|
4,999,083
|
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
$
21.19
|
$
19.75
|
$
19.75
|
|
|
|
Tangible book value per
share (non-GAAP)
|
$
20.82
|
$
19.39
|
$
19.37
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/old-point-releases-fourth-quarter-and-full-year-2023-results-302048527.html
SOURCE Old Point Financial Corporation