HAMPTON,
Va., July 26, 2022 /PRNewswire/ -- Old Point
Financial Corporation (the Company or Old Point) (NASDAQ "OPOF")
reported net income of $1.9 million
and earnings per diluted common share of $0.37 for the second quarter of 2022 compared to
net income of $1.8 million and
earnings per diluted common share of $0.35 for the second quarter of 2021. Net income
for the six months ended June 30,
2022 and 2021 was $3.9
million, or $0.76 earnings per
diluted common share, and $4.9
million, or $0.93 earnings per
diluted common share, respectively.
Robert Shuford, Jr., Chairman,
President and CEO of the Company and Old Point National Bank (the
Bank) said, "Second quarter results validate Old Point's strategy
to grow our talent in lending and wealth management, producing a 9%
increase in top line revenue generation over the first quarter 2022
level. We effectively deployed excess cash into loans and
investments, providing a substantial improvement to our net
interest margin compared to the first quarter of 2022, which is
expected to continue on an upward glidepath as interest rates
increase. We believe we are well positioned with strong asset
quality and capital levels to continue executing on our strategic
initiatives."
Highlights of the second quarter and first six months are as
follows:
- Net loans held for investment grew $70.7
million from December 31,
2021. PPP loans outstanding were $3.3
million at June 30, 2022
compared to $19.0 million and
$60.3 million at December 31, 2021 and June
30, 2021, respectively. Loans held for investment, (net of
deferred fees and costs), excluding PPP (non-GAAP), grew
$86.5 million, or 10.5%, to
$911.0 million, from December 31, 2021 and $138.6 million, or 18.0%, from June 30, 2021.
- Average earning assets of $1.2
billion for the quarter and six months ended June 30, 2022 grew $54.1
million, or 4.6%, and $74.8
million, or 6.4%, compared to the prior year comparative
periods, respectively.
- Provision for loan losses of $570
thousand was recognized for the second quarter of 2022,
compared to $101 thousand for the
first quarter of 2022 and no provision for the second quarter of
2021. The increase in provision expense during the second quarter
of 2022 was primarily driven by increases in net loans held for
investment. For the six months ended June
30, 2022 and 2021, the provision for loan losses was
$671 thousand and $150 thousand, respectively.
- Net interest margin (NIM) improved to 3.36% in the second
quarter of 2022, increasing from 3.14% in the first quarter of 2022
and 3.10% in the second quarter of 2021. NIM on a fully
tax-equivalent basis (FTE) (non-GAAP) improved to 3.38% in the
second quarter of 2022 from 3.16% in the linked quarter and 3.12%
in the second quarter of 2021.
- Net interest income was $10.3
million for the second quarter of 2022, increasing
$684 thousand, or 7.1%, from
$9.6 million for the prior quarter
and $1.2 million, or 13.3%, from
$9.1 million for the second quarter
of 2021. For the six months ended June 30,
2022 and 2021, net interest income was $20.0 million and $19.3
million, respectively.
- Net PPP fees of $213 thousand
were recognized in the second quarter of 2022 compared to
$408 thousand in the first quarter of
2022 and $449 thousand in the second
quarter of 2021. Net PPP fees recognized for the first six months
of 2022 decreased $621 thousand from
$2.0 million for the comparative 2021
period.
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 $1.3 billion as of
June 30, 2022 decreased by
$23.3 million from December 31, 2021. Net loans held for investment
increased $70.7 million, or 8.5% from
December 31, 2021 to $904.4 million at June 30,
2022. Loans held for investment, excluding PPP, (non-GAAP)
grew 10.5%, or $86.5 million, driven
by loan growth in the following segments: commercial real estate of
$16.7 million, construction, land
development, and other land loans of $6.3
million, residential real estate of $44.0 million, and indirect automobile of
$19.4 million. Securities available
for sale, at fair value, increased $5.0
million from December 31, 2021
to $239.4 million at June 30, 2022.
Total deposits of $1.2 billion as
of June 30, 2022 decreased
$4.1 million, or 0.3%, from
December 31, 2021.
Noninterest-bearing deposits increased $12.7
million, or 3.0%, savings deposits decreased $6.4 million, or 1.1%, and time deposits
decreased $10.4 million, or 6.2%.
The Company's total stockholders' equity at June 30, 2022 decreased $19.7 million, or 16.3%, from December 31, 2021 to $101.2 million. The decrease was related to
unrealized losses in the market value of securities available for
sale, which are recognized as a component of accumulated other
comprehensive (loss) income, and the repurchase of 199,095 shares,
for an aggregate purchase price of $5.0
million during the first six months of 2022, under the
Company's share repurchase program authorized in October 2021. The decline in market value for the
securities available for sale during the first six months of 2022
was a result of rising market interest rates. 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 12.65% at
June 30, 2022 as compared to 12.57%
at December 31, 2021. The Bank's
leverage ratio was 9.27% at June 30,
2022 as compared to 9.09% at December
31, 2021.
NPAs totaled $4.6 million as of
June 30, 2022 compared to
$4.8 million as of March 31, 2022 and $2.4
million at June 30, 2021. NPAs
as a percentage of total assets was 0.35% at June 30, 2022, compared to 0.36% at March 31, 2022 and 0.19% at June 30, 2021. Non-accrual loans were
$4.1 million at June 30, 2022, a decrease from $4.2 million at March 31,
2022 and an increase from $1.4
million at June 30, 2021.
Loans past due 90 days or more and still accruing interest
decreased $59 thousand to
$565 thousand at June 30, 2022 from $624
thousand at March 31, 2022 and
decreased $428 thousand from
$1.0 million at June 30, 2021. Of the loans past due 90 days or
more at June 30, 2022, approximately
$143 thousand were
government-guaranteed student loans.
The Company recognized a provision for loan losses of
$570 thousand during the second
quarter of 2022 compared to $101
thousand during the first quarter of 2022, due primarily to
increases in net loans held for investment. No provision was
recognized during the second quarter of 2021. The allowance for
loan and lease losses (ALLL) was $9.9
million at June 30, 2022
compared to $9.5 million at both
March 31, 2022 and June 30, 2021. The ALLL as a percentage of loans
held for investment was 1.08% at June 30,
2022 compared to 1.11% at March 31,
2022 and 1.14% at June 30,
2021. Excluding PPP loans, the ALLL as a percentage of loans
held for investment (non-GAAP) was 1.09% at June 30, 2022, 1.12% at March 31, 2022, and 1.23% at June 30, 2021. The decrease in the ALLL as a
percentage of loans held for investment at June 30, 2022 compared to the linked quarter was
primarily attributable to: (i) an increase in loans held for
investment, excluding PPP loans (non-GAAP); partially offset by
(ii) continued improvement in historical qualitative loss rates;
and (iii) a reduction of certain qualitative factor adjustments
related to the COVID-19 pandemic. Quarterly annualized net charge
offs as a percentage of average loans outstanding was 0.09% for the
second quarter of 2022, compared to 0.21% for the first quarter of
2022 and 0.09% for the second quarter of 2021. As of June 30, 2022, 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 loan losses is sufficient to absorb losses in the
loan portfolio; however, if elevated levels of risk are identified
such as further challenges to economic conditions in our markets,
including due to the impacts of inflation, or loan performance
deterioration that could result in elevated delinquencies or net
charge-offs, provision for loan losses may increase in future
periods.
Net Interest Income
Net interest income for the second quarter of 2022 was
$10.3 million, an increase of
$684 thousand, or 7.1%, from the
prior quarter and $1.2 million, or
13.3%, from the second quarter of 2021. The increase from the
prior-year comparative quarter was due primarily to growth in
higher yielding loans and investments funded by lower yielding
cash, and higher average yields on higher earning asset balances,
due to the effect of rising market interest rates. For the six
months ended June 30, 2022 and 2021,
net interest income was $20.0 million
and $19.3 million, respectively. The
increase from the prior-year comparative period was impacted by
higher average earning assets at lower average earning yields,
driven primarily by accelerated recognition of net deferred fees
related to PPP forgiveness at a lower volume during 2022, partially
offset by higher average-interest bearing liabilities at lower
average rates.
The Net Interest Margin (NIM) for the second quarter of 2022 was
3.36%, an increase from 3.14% for the linked quarter and 3.10% for
the prior year quarter. On a fully tax-equivalent basis (FTE)
(non-GAAP), NIM was 3.38% for the second quarter of 2022, up from
3.16% for the first quarter of 2022 and 3.12% for the second
quarter of 2021. Average loans increased $45.0 million, or 5.4%, and $36.8 million, or 4.4%, for the second quarter
and first six months of 2022 compared to the same periods of 2021.
Average loan yields were higher in the second quarter of 2022
compared to the same period of 2021 due primarily to the effects of
rising interest rates. For the first six months of 2022, average
loan yields were lower compared to the same period of 2021 due
primarily to lower accelerated recognition of deferred fees and
costs related to PPP forgiveness partially offset by the effects of
rising interest rates during the first six months of 2022. Loan
fees and costs related to PPP loans are deferred at time of loan
origination, are amortized into interest income over the remaining
term of the loans and are accelerated upon forgiveness or repayment
of the PPP loans. Net PPP fees of $213
thousand were recognized in the second quarter of 2022
compared to $408 thousand in the
linked quarter and $449 thousand in
the prior year quarter. Net PPP fees recognized for the first six
months of 2022 were $621 thousand,
down from $2.0 million for the
comparative 2021 period. As of June 30,
2022, unrecognized net PPP fees were $82 thousand. Subordinated debt interest expense
also impacted the NIM for the second quarter and first six months
of 2022. During the first six months of 2022, market interest rates
increased, and the Company is asset sensitive at June 30, 2022 and believes the balance sheet is
well positioned for a rising interest rate environment; however,
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 and first quarters of 2022, as well
as the second quarter of 2021. Increases during the second quarter
of 2022 in service charges on deposit accounts, other service
charges, commissions and fees, and other operating income were
offset by decreases primarily in mortgage banking income compared
to the linked quarter. Although fiduciary and asset management
fees, service charges on deposit accounts, and other operating
income increased compared to the prior year quarter, these
increases were also offset primarily by lower mortgage banking
income, resulting in essentially flat noninterest income for the
second quarter of 2022 when compared to the prior year quarter.
Noninterest income for the six months ended June 30, 2022 decreased $657 thousand to $7.0
million compared to the six months ended June 30, 2021, driven primarily by the decrease
in mortgage banking income. The decrease in mortgage banking income
for the second quarter and first six months of 2022 compared to the
respective 2021 periods was due to declines in volume of mortgage
originations attributable to changes in mortgage market
conditions.
Noninterest Expense
Noninterest expense totaled $11.1
million for the second quarter of 2022 compared to
$10.7 million for the first quarter
of 2022 and $10.5 million for the
second quarter of 2021. The linked quarter increase of $377 thousand was primarily related to increases
in salary and benefits and ATM and other losses. The increase over
the prior year quarter was primarily driven by increased salary and
benefit expense, employee professional development related to
recruiting, and ATM and other losses, partially offset by decreased
data processing and other operating expenses. For the six
months ended June 30, 2022,
noninterest expense increased $710
thousand, or 3.4% over the six months ended June 30, 2021, primarily due to increases in
salary and benefits and employee professional development partially
offset by decreases in other operating expense. The increase in
salary and benefits was driven by lower deferred loan costs
partially offset by reductions in commissions and temporary staff
expense. The Company is actively assessing major vendor
contracts and relationships as part of our efforts to reduce
noninterest expense levels and improve operating efficiency.
Capital Management and
Dividends
For the second quarter of 2022 the Company declared dividends of
$0.13 per share, an increase of 8.3%
over dividends of $0.12 per share
declared in the second quarter of 2021. The dividend represents a
payout ratio of 35.0% of earnings per share for the second quarter
of 2022. 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 decreased $19.7
million at June 30, 2022,
compared to December 31, 2021, due
primarily to unrealized losses in the market value of securities
available for sale, which are recognized as a component of
accumulated other comprehensive (loss) income, and the repurchase
of shares under the Company's share repurchase program, partially
offset by net income. The Company's securities available for sale
are fixed income debt securities, and their decline in market value
during the first six months of 2022 was a result of increases in
market interest rates. 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.
The Company has a share repurchase program which was authorized
by the Board of Directors in October
2021 to repurchase up to 10% of the Company's issued and
outstanding common stock through November
30, 2022. During the second quarter of 2022, 76,100 shares,
for an aggregate purchase price of $1.9
million, of its common stock were repurchased by the Company
under this plan.
At June 30, 2022, the book value
per share of the Company's common stock was $19.97, and tangible book value per share
(non-GAAP) was $19.60. 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, 2022, the
Company has provided supplemental financial measures on a
tax-equivalent or an 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 currently available to,
management. 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 could differ
materially from historical results or those anticipated by such
statements. Forward-looking statements in this release may include,
without limitation: statements regarding strategic business
initiatives, including digital and technological strategies, and
the future financial impact of those initiatives; future financial
performance; future financial and economic conditions and loan
demand; 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; and
levels of or changes in interest rates.
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 portfolio; general economic and business conditions,
including higher inflation, slowdowns in economic growth, an
increase in unemployment levels, the COVID-19 pandemic, the ongoing
conflict between Russia and
Ukraine, 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; the quality or the composition of the loan or
securities portfolio and changes therein; an insufficient ALLL;
steps the Company takes in response to the pandemic, the severity
and duration of the pandemic including the impact of the COVID-19
variants, the speed and efficacy of vaccine and treatment
developments, the loosening or tightening of government
restrictions, the pace of recovery when the pandemic subsides and
the heightened impact it has on many of the risks described herein;
the effects of the COVID-19 pandemic on, among other things, the
Company's operations, liquidity, and credit quality; 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; 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; 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; competition; demand for financial services in
Old Point's market area; technology; 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; accounting principles,
policies and guidelines; 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, 2021. 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 of the
release.
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 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.
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)
|
2022
|
2021
|
|
(unaudited)
|
|
Assets
|
|
|
|
|
|
Cash and due from
banks
|
$
18,913
|
$
13,154
|
Interest-bearing due
from banks
|
67,216
|
164,073
|
Federal funds
sold
|
687
|
10,425
|
Cash and cash
equivalents
|
86,816
|
187,652
|
Securities
available-for-sale, at fair value
|
239,356
|
234,321
|
Restricted securities,
at cost
|
1,389
|
1,034
|
Loans held for
sale
|
1,325
|
3,287
|
Loans, net
|
904,376
|
833,661
|
Premises and equipment,
net
|
31,377
|
32,134
|
Premises and equipment,
held for sale
|
1,216
|
871
|
Bank-owned life
insurance
|
28,566
|
28,168
|
Goodwill
|
1,650
|
1,650
|
Core deposit
intangible, net
|
253
|
275
|
Other assets
|
18,560
|
14,832
|
Total assets
|
$
1,314,884
|
$ 1,337,885
|
|
|
|
Liabilities &
Stockholders' Equity
|
|
|
|
|
|
Deposits:
|
|
|
Noninterest-bearing
deposits
|
$
434,249
|
$
421,531
|
Savings
deposits
|
580,039
|
586,450
|
Time
deposits
|
158,706
|
169,118
|
Total
deposits
|
1,172,994
|
1,177,099
|
Overnight repurchase
agreements
|
4,384
|
4,536
|
Federal Reserve Bank
borrowings
|
-
|
480
|
Long term
borrowings
|
29,472
|
29,407
|
Accrued expenses and
other liabilities
|
6,884
|
5,545
|
Total
liabilities
|
1,213,734
|
1,217,067
|
|
|
|
Stockholders'
equity:
|
|
|
Common stock, $5 par
value, 10,000,000 shares authorized; 5,064,236 and 5,239,707 shares
outstanding (includes 46,092 and 38,435 of nonvested restricted
stock, respectively)
|
25,091
|
26,006
|
Additional paid-in
capital
|
17,643
|
21,458
|
Retained
earnings
|
74,266
|
71,679
|
Accumulated other
comprehensive (loss) income, net
|
(15,850)
|
1,675
|
Total stockholders'
equity
|
101,150
|
120,818
|
Total liabilities and
stockholders' equity
|
$
1,314,884
|
$ 1,337,885
|
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,
2022
|
Mar. 31,
2022
|
Jun. 30,
2021
|
|
Jun. 30,
2022
|
Jun. 30,
2021
|
|
|
|
|
|
|
|
Interest and
Dividend Income:
|
|
|
|
|
|
|
Loans, including
fees
|
$
9,483
|
$
9,184
|
$
8,814
|
|
$
18,667
|
$
18,768
|
Due from
banks
|
208
|
73
|
52
|
|
281
|
95
|
Federal funds
sold
|
6
|
1
|
-
|
|
7
|
-
|
Securities:
|
|
|
|
|
|
|
Taxable
|
1,123
|
989
|
791
|
|
2,112
|
1,561
|
Tax-exempt
|
251
|
209
|
191
|
|
460
|
372
|
Dividends and interest
on all other securities
|
14
|
14
|
11
|
|
28
|
41
|
Total interest and
dividend income
|
11,085
|
10,470
|
9,859
|
|
21,555
|
20,837
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
Checking and savings
deposits
|
148
|
176
|
235
|
|
324
|
450
|
Time
deposits
|
320
|
361
|
511
|
|
681
|
1,095
|
Federal funds
purchased, securities sold under
|
|
|
|
|
|
|
agreements to
repurchase and other borrowings
|
1
|
1
|
7
|
|
2
|
30
|
Long term
borrowings
|
295
|
295
|
-
|
|
590
|
-
|
Total interest
expense
|
764
|
833
|
753
|
|
1,597
|
1,575
|
Net interest
income
|
10,321
|
9,637
|
9,106
|
|
19,958
|
19,262
|
Provision for loan
losses
|
570
|
101
|
-
|
|
671
|
150
|
Net interest income
after provision for loan losses
|
9,751
|
9,536
|
9,106
|
|
19,287
|
19,112
|
|
|
|
|
|
|
|
Noninterest
Income:
|
|
|
|
|
|
|
Fiduciary and asset
management fees
|
1,061
|
1,072
|
1,051
|
|
2,133
|
2,078
|
Service charges on
deposit accounts
|
761
|
722
|
657
|
|
1,483
|
1,306
|
Other service charges,
commissions and fees
|
1,143
|
1,053
|
1,163
|
|
2,196
|
2,150
|
Bank-owned life
insurance income
|
195
|
231
|
204
|
|
426
|
430
|
Mortgage banking
income
|
113
|
220
|
381
|
|
333
|
1,569
|
Other operating
income
|
227
|
217
|
82
|
|
444
|
139
|
Total noninterest
income
|
3,500
|
3,515
|
3,538
|
|
7,015
|
7,672
|
|
|
|
|
|
|
|
Noninterest
Expense:
|
|
|
|
|
|
|
Salaries and employee
benefits
|
6,611
|
6,422
|
6,227
|
|
13,033
|
12,454
|
Occupancy and
equipment
|
1,143
|
1,161
|
1,123
|
|
2,304
|
2,325
|
Data
processing
|
1,151
|
1,090
|
1,197
|
|
2,241
|
2,240
|
Customer
development
|
69
|
93
|
69
|
|
162
|
147
|
Professional
services
|
638
|
630
|
620
|
|
1,268
|
1,165
|
Employee professional
development
|
275
|
264
|
192
|
|
539
|
333
|
Other taxes
|
212
|
213
|
171
|
|
425
|
422
|
ATM and other
losses
|
100
|
14
|
17
|
|
114
|
156
|
Other operating
expenses
|
891
|
826
|
919
|
|
1,717
|
1,851
|
Total noninterest
expense
|
11,090
|
10,713
|
10,535
|
|
21,803
|
21,093
|
Income before income
taxes
|
2,161
|
2,338
|
2,109
|
|
4,499
|
5,691
|
Income tax
expense
|
269
|
307
|
267
|
|
576
|
837
|
Net income
|
$
1,892
|
$
2,031
|
$
1,842
|
|
$
3,923
|
$
4,854
|
|
|
|
|
|
|
|
Basic Earnings per
Share:
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
5,086,957
|
5,186,354
|
5,237,479
|
|
5,136,380
|
5,231,026
|
Net income per share of
common stock
|
$
0.37
|
$
0.39
|
$
0.35
|
|
$
0.76
|
$
0.93
|
|
|
|
|
|
|
|
Diluted Earnings per
Share:
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
5,087,038
|
5,186,431
|
5,237,479
|
|
5,136,459
|
5,231,026
|
Net income per share of
common stock
|
$
0.37
|
$
0.39
|
$
0.35
|
|
$
0.76
|
$
0.93
|
|
|
|
|
|
|
|
Cash Dividends
Declared per Share:
|
$
0.13
|
$
0.13
|
$
0.12
|
|
$
0.26
|
$
0.24
|
Old Point Financial
Corporation and Subsidiaries
|
|
|
|
|
Average Balance
Sheets, Net Interest Income And Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarters
ended June 30,
|
(unaudited)
|
2022
|
2021
|
|
|
Interest
|
|
|
Interest
|
|
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
(dollars in
thousands)
|
Balance
|
Expense
|
Rate**
|
Balance
|
Expense
|
Rate**
|
ASSETS
|
|
|
|
|
|
|
Loans*
|
$
876,575
|
$
9,495
|
4.34 %
|
$
831,563
|
$
8,826
|
4.26 %
|
Investment
securities:
|
|
|
|
|
|
|
Taxable
|
196,880
|
1,123
|
2.29 %
|
162,859
|
791
|
1.95 %
|
Tax-exempt*
|
43,471
|
318
|
2.93 %
|
32,822
|
242
|
2.96 %
|
Total investment
securities
|
240,351
|
1,441
|
2.40 %
|
195,681
|
1,033
|
2.12 %
|
Interest-bearing due
from banks
|
111,091
|
208
|
0.75 %
|
150,995
|
52
|
0.14 %
|
Federal funds
sold
|
3,923
|
6
|
0.61 %
|
4
|
-
|
0.02 %
|
Other
investments
|
1,389
|
14
|
4.20 %
|
1,033
|
11
|
4.19 %
|
Total earning
assets
|
1,233,329
|
$ 11,164
|
3.63 %
|
1,179,276
|
$
9,922
|
3.37 %
|
Allowance for loan
losses
|
(9,578)
|
|
|
(9,619)
|
|
|
Other non-earning
assets
|
97,156
|
|
|
106,058
|
|
|
Total assets
|
$ 1,320,907
|
|
|
$ 1,275,715
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Time and savings
deposits:
|
|
|
|
|
|
|
Interest-bearing
transaction accounts
|
$ 72,125
|
$
3
|
0.01 %
|
$ 70,532
|
$
3
|
0.02 %
|
Money market deposit
accounts
|
393,014
|
135
|
0.14 %
|
372,691
|
220
|
0.24 %
|
Savings
accounts
|
131,062
|
10
|
0.03 %
|
113,963
|
12
|
0.04 %
|
Time
deposits
|
161,939
|
320
|
0.79 %
|
183,936
|
511
|
1.11 %
|
Total time and savings
deposits
|
758,140
|
468
|
0.25 %
|
741,122
|
746
|
0.40 %
|
Federal funds
purchased, repurchase
|
|
|
|
|
|
|
agreements and other
borrowings
|
3,926
|
1
|
0.07 %
|
14,505
|
7
|
0.21 %
|
Long term
borrowings
|
29,453
|
295
|
3.96 %
|
-
|
-
|
0.00 %
|
Total interest-bearing
liabilities
|
791,519
|
764
|
0.39 %
|
755,627
|
753
|
0.40 %
|
Demand
deposits
|
417,400
|
|
|
394,337
|
|
|
Other
liabilities
|
6,077
|
|
|
6,131
|
|
|
Stockholders'
equity
|
105,911
|
|
|
119,620
|
|
|
Total liabilities and
stockholders' equity
|
$ 1,320,907
|
|
|
$ 1,275,715
|
|
|
Net interest
margin*
|
|
$ 10,400
|
3.38 %
|
|
$
9,169
|
3.12 %
|
|
|
|
|
|
|
|
*Computed on a fully
tax-equivalent basis (non-GAAP) using a 21% rate, adjusting
interest income
|
by $79 thousand
and $63 thousand for June 30, 2022 and 2021,
respectively.
|
|
|
**Annualized
|
|
|
|
|
Old Point Financial
Corporation and Subsidiaries
|
|
|
|
|
Average Balance
Sheets, Net Interest Income And Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended June 30,
|
(unaudited)
|
2022
|
2021
|
|
|
Interest
|
|
|
Interest
|
|
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
(dollars in
thousands)
|
Balance
|
Expense
|
Rate**
|
Balance
|
Expense
|
Rate**
|
ASSETS
|
|
|
|
|
|
|
Loans*
|
$
870,271
|
$ 18,690
|
4.33 %
|
$
833,446
|
$ 18,791
|
4.55 %
|
Investment
securities:
|
|
|
|
|
|
|
Taxable
|
199,396
|
2,112
|
2.14 %
|
161,196
|
1,561
|
1.95 %
|
Tax-exempt*
|
40,257
|
582
|
2.92 %
|
31,268
|
471
|
3.04 %
|
Total investment
securities
|
239,653
|
2,694
|
2.27 %
|
192,464
|
2,032
|
2.13 %
|
Interest-bearing due
from banks
|
124,272
|
281
|
0.46 %
|
137,744
|
95
|
0.14 %
|
Federal funds
sold
|
4,181
|
7
|
0.33 %
|
4
|
-
|
0.03 %
|
Other
investments
|
1,266
|
28
|
4.51 %
|
1,176
|
41
|
6.96 %
|
Total earning
assets
|
1,239,643
|
$ 21,700
|
3.53 %
|
1,164,834
|
$ 20,959
|
3.63 %
|
Allowance for loan
losses
|
(9,782)
|
|
|
(9,633)
|
|
|
Other nonearning
assets
|
95,485
|
|
|
101,615
|
|
|
Total assets
|
$ 1,325,346
|
|
|
$ 1,256,816
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Time and savings
deposits:
|
|
|
|
|
|
|
Interest-bearing
transaction accounts
|
$ 73,619
|
$
5
|
0.01 %
|
$ 69,153
|
$
6
|
0.02 %
|
Money market deposit
accounts
|
391,201
|
299
|
0.15 %
|
360,180
|
422
|
0.24 %
|
Savings
accounts
|
128,673
|
20
|
0.03 %
|
111,128
|
22
|
0.04 %
|
Time
deposits
|
164,882
|
681
|
0.83 %
|
187,597
|
1,095
|
1.18 %
|
Total time and savings
deposits
|
758,375
|
1,005
|
0.27 %
|
728,058
|
1,545
|
0.43 %
|
Federal funds
purchased, repurchase
|
|
|
|
|
|
|
agreements and other
borrowings
|
4,256
|
2
|
0.08 %
|
20,347
|
30
|
0.30 %
|
Long term
borrowings
|
29,436
|
590
|
4.04 %
|
-
|
-
|
0.00 %
|
Total interest-bearing
liabilities
|
792,067
|
1,597
|
0.41 %
|
748,405
|
1,575
|
0.42 %
|
Demand
deposits
|
415,749
|
|
|
381,278
|
|
|
Other
liabilities
|
5,725
|
|
|
8,008
|
|
|
Stockholders'
equity
|
111,805
|
|
|
119,125
|
|
|
Total liabilities and
stockholders' equity
|
$ 1,325,346
|
|
|
$ 1,256,816
|
|
|
Net interest
margin*
|
|
$ 20,103
|
3.27 %
|
|
$ 19,384
|
3.36 %
|
|
|
|
|
|
|
|
*Computed on a fully
tax-equivalent basis (non-GAAP) using a 21% rate, adjusting
interest income
|
by $145 thousand
and $122 thousand for June 30, 2022 and 2021,
respectively.
|
|
|
**Annualized
|
|
|
|
|
Old Point Financial
Corporation and Subsidiaries
|
As of or for the
quarters ended,
|
|
Six Months
Ended
|
Selected Ratios
(unaudited)
|
June 30,
|
March 31,
|
June 30,
|
|
June 30,
|
June 30,
|
(dollars in thousands,
except per share data)
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
|
Earnings per common
share, diluted
|
$
0.37
|
$
0.39
|
$
0.35
|
|
$
0.76
|
$
0.93
|
Return on average
assets (ROA)
|
0.57 %
|
0.62 %
|
0.58 %
|
|
0.60 %
|
0.78 %
|
Return on average
equity (ROE)
|
7.17 %
|
6.99 %
|
6.18 %
|
|
7.08 %
|
8.22 %
|
Net Interest Margin
(FTE) (non-GAAP)
|
3.38 %
|
3.16 %
|
3.12 %
|
|
3.27 %
|
3.36 %
|
Efficiency
ratio
|
80.24 %
|
81.46 %
|
83.32 %
|
|
80.83 %
|
78.31 %
|
Efficiency ratio (FTE)
(non-GAAP)
|
79.79 %
|
81.04 %
|
82.91 %
|
|
80.40 %
|
77.96 %
|
Book value per
share
|
19.97
|
21.12
|
22.87
|
|
|
|
Tangible Book Value per
share (non-GAAP)
|
19.60
|
20.75
|
22.50
|
|
|
|
Non-performing assets
(NPAs) / total assets
|
0.35 %
|
0.36 %
|
0.19 %
|
|
|
|
Annualized Net Charge
Offs / average total loans
|
0.09 %
|
0.21 %
|
0.09 %
|
|
|
|
Allowance for loan and
lease losses / total loans
|
1.08 %
|
1.11 %
|
1.14 %
|
|
|
|
|
|
|
|
|
|
|
Non-Performing Assets
(NPAs)
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
4,074
|
$
4,187
|
$
1,403
|
|
|
|
Loans > 90 days past
due, but still accruing interest
|
565
|
624
|
993
|
|
|
|
Other real estate
owned
|
-
|
-
|
-
|
|
|
|
Total non-performing
assets
|
$
4,639
|
$
4,811
|
$
2,396
|
|
|
|
|
|
|
|
|
|
|
Other Selected
Numbers
|
|
|
|
|
|
|
Loans, net
|
$
904,376
|
$
845,714
|
$
823,200
|
|
|
|
Deposits
|
1,172,994
|
1,178,889
|
1,134,017
|
|
|
|
Stockholders'
equity
|
101,150
|
108,099
|
119,928
|
|
|
|
Total assets
|
1,314,884
|
1,325,385
|
1,274,811
|
|
|
|
Loans charged off
during the quarter, net of recoveries
|
194
|
446
|
188
|
|
|
|
Quarterly average
loans
|
876,575
|
863,897
|
831,563
|
|
|
|
Quarterly average
assets
|
1,320,907
|
1,329,835
|
1,275,715
|
|
|
|
Quarterly average
earning assets
|
1,233,329
|
1,246,028
|
1,179,276
|
|
|
|
Quarterly average
deposits
|
1,175,540
|
1,172,694
|
1,135,459
|
|
|
|
Quarterly average
equity
|
105,911
|
117,765
|
119,620
|
|
|
|
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,
2022
|
Mar. 31,
2022
|
Jun. 30,
2021
|
|
Jun. 30,
2022
|
Jun. 30,
2021
|
|
|
|
|
|
|
|
Fully Taxable
Equivalent Net Interest Income
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
$
10,321
|
$
9,637
|
$
9,106
|
|
$
19,958
|
$
19,262
|
FTE
adjustment
|
79
|
68
|
63
|
|
145
|
122
|
Net interest income
(FTE) (non-GAAP)
|
$
10,400
|
$
9,705
|
$
9,169
|
|
$
20,103
|
$
19,384
|
Noninterest income
(GAAP)
|
3,500
|
3,515
|
3,538
|
|
7,015
|
7,672
|
Total revenue (FTE)
(non-GAAP)
|
$
13,900
|
$
13,220
|
$
12,707
|
|
$
27,118
|
$
27,056
|
Noninterest expense
(GAAP)
|
11,090
|
10,713
|
10,535
|
|
21,803
|
21,093
|
|
|
|
|
|
|
|
Average earning
assets
|
$ 1,233,329
|
$ 1,246,028
|
$ 1,179,276
|
|
$ 1,239,643
|
$ 1,164,834
|
Net interest
margin
|
3.36 %
|
3.14 %
|
3.10 %
|
|
3.25 %
|
3.33 %
|
Net interest margin
(FTE) (non-GAAP)
|
3.38 %
|
3.16 %
|
3.12 %
|
|
3.27 %
|
3.36 %
|
|
|
|
|
|
|
|
Efficiency
ratio
|
80.24 %
|
81.46 %
|
83.32 %
|
|
80.83 %
|
78.31 %
|
Efficiency ratio (FTE)
(non-GAAP)
|
79.79 %
|
81.04 %
|
82.91 %
|
|
80.40 %
|
77.96 %
|
|
|
|
|
|
|
|
Tangible Book Value
Per Share
|
|
|
|
|
|
|
Total Stockholders
Equity (GAAP)
|
$
101,150
|
$
108,099
|
$
119,928
|
|
|
|
Less
goodwill
|
1,650
|
1,650
|
1,650
|
|
|
|
Less core deposit
intangible
|
253
|
264
|
297
|
|
|
|
Tangible Stockholders
Equity (non-GAAP)
|
$
99,247
|
$
106,185
|
$
117,981
|
|
|
|
|
|
|
|
|
|
|
Shares issued and
outstanding
|
5,064,236
|
5,118,193
|
5,244,635
|
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
$
19.97
|
$
21.12
|
$
22.87
|
|
|
|
Tangible book value per
share (non-GAAP)
|
$
19.60
|
$
20.75
|
$
22.50
|
|
|
|
|
|
|
|
|
|
|
|
Jun. 30,
2022
|
Mar. 31,
2022
|
Jun. 30,
2021
|
|
Dec. 31,
2021
|
|
ALLL as a Percentage
of Loans Held for Investment
|
|
|
|
|
|
|
Loans held for
investment (net of deferred fees and costs) (GAAP)
|
$
914,272
|
$
855,234
|
$
832,673
|
|
$
843,526
|
|
Less PPP loans
outstanding
|
3,301
|
7,509
|
60,306
|
|
19,008
|
|
Loans held for
investment, (net of deferred fees and costs), excluding PPP
(non-GAAP)
|
$
910,971
|
$
847,725
|
$
772,367
|
|
$
824,518
|
|
|
|
|
|
|
|
|
ALLL
|
$
9,896
|
$
9,520
|
$
9,473
|
|
$
9,865
|
|
|
|
|
|
|
|
|
ALLL as a Percentage of
Loans Held for Investment
|
1.08 %
|
1.11 %
|
1.14 %
|
|
1.17 %
|
|
ALLL as a Percentage of
Loans Held for Investment, net of PPP originations
|
1.09 %
|
1.12 %
|
1.23 %
|
|
1.20 %
|
|
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SOURCE Old Point Financial Corporation