HAMPTON,
Va., Oct. 26, 2023 /PRNewswire/ -- Old Point
Financial Corporation (the Company or Old Point) (NASDAQ "OPOF")
reported net income of $1.4 million
and earnings per diluted common share of $0.27 for the third quarter of 2023 compared to
net income of $2.5 million and
earnings per diluted common share of $0.51 for the third quarter of 2022. Net
income for the nine months ended September
30, 2023 and 2022 was $6.2
million, or $1.24 earnings per
diluted common share, and $6.5
million, or $1.27 earnings per
diluted common share, respectively.
Robert Shuford, Jr., Chairman,
President and CEO of the Company and Old Point National Bank (the
Bank) commented, "Old Point delivered strong third quarter
operating results despite the challenges facing the banking
industry. While we have seen significant loan growth at higher
yields, the rise in deposit rates have caused overall funding costs
to increase more than yields on interest earning assets during the
first nine months of 2023. While earnings remain under pressure in
the short term, our asset quality, capital levels, and liquidity
remain strong, providing a solid foundation for the execution of
our strategic initiatives. Additionally, we believe our stable
deposit base remains a strength of our Company that will continue
to position us well for the
future."
Highlights of the third quarter are as follows:
- Total assets were $1.4 billion at
September 30, 2023, growing
$91.7 million or 6.8% from
December 31, 2022.
- Net loans held for investment grew $54.3
million, or 5.3%, from December 31,
2022 and $125.7 million, or
13.3% from September 30, 2022.
- Total deposits increased $81.6
million, or 7.1%, from December 31,
2022 and $55.3 million, or
4.7% from September 30, 2022.
- Nonperforming assets were $2.7
million at September 30, 2023,
down from $4.7 million at
September 30, 2022.
- Average earning assets of $1.4
and $1.3 billion for the quarter and
nine months ended September 30, 2023
grew $135.7 million, or 11.1%, and
$90.5 million, or 7.3%, compared to
the prior year comparative periods, respectively.
- Average interest-bearing liabilities were $984.3 million for the quarter ended September 30, 2023, up $208.4 million or 26.9%, compared to the prior
year comparative period. For the nine months ended September 30, 2023 and 2022, average
interest-bearing liabilities were $925.1
million and $786.6 million,
respectively.
- Net interest margin (NIM) was 3.33% in the third quarter of
2023, compared to 3.67% in the second quarter of 2023 and 3.75% in
the third quarter of 2022. NIM on a fully tax-equivalent basis
(FTE) (non-GAAP) was 3.35% in the third quarter of 2023, 3.69% in
the linked quarter and 3.78% in the third quarter of 2022.
- Net interest income for the third quarter of 2023, decreased
$145 thousand, or 1.3% compared to
the third quarter of 2022, and decreased $673 thousand, or 5.6%, compared to the second
quarter of 2023. For the nine months ended September 30, 2023 and 2022, net interest income
was $36.3 million and $31.5 million, respectively.
- Liquidity as of September 30,
2023, defined as cash and due from banks, unpledged
securities, and available secured borrowing capacity, totaled
$407.6 million, representing 28.2% 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 September 30, 2023 increased by $91.7 million from December 31, 2022. Net loans held for investment
increased $54.3 million, or 5.3% from
December 31, 2022 to $1.1 billion at September
30, 2023, driven by diversified loan growth in the following
segments: construction and land development of $16.2 million, residential real estate of
$21.0 million, commercial real estate
of $11.9 million, and consumer loans
of $5.7 million. Securities
available-for-sale, at fair value, decreased $24.9 million from December 31, 2022 to $200.6 million at September 30, 2023 due primarily to the rise in
interest rates.
Total deposits of $1.2 billion as
of September 30, 2023 increased
$81.6 million, or 7.1%, from
December 31, 2022.
Noninterest-bearing deposits decreased $70.3
million, or 16.8%, savings deposits increased $35.3 million, or 6.0%, and time deposits
increased $116.6 million, or 76.2%,
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 $8.3 million to $70.8
million at September 30, 2023
from $62.5 million at December 31, 2022, as the Company used additional
borrowings to help fund loan growth during the first nine months of
2023.
The Company's total stockholders' equity at September 30, 2023 increased $792 thousand, or 0.8%, from December 31, 2022 to $99.5
million. The increase was primarily related to current year
earnings, partially offset by unrealized losses in the market value
of securities available-for-sale, which are recorded as a component
of accumulated other comprehensive loss and 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 11.28% at September 30, 2023 as compared to 10.82% at
December 31, 2022. The Bank's
leverage ratio was 9.46% at September 30,
2023 as compared to 9.43% at December
31, 2022.
Non-performing assets (NPAs) totaled $2.7
million as of September 30,
2023 compared to $4.7 million
as of September 30, 2022 and
$1.4 million at June 30, 2023. NPAs as a percentage of total
assets was 0.19% at September 30,
2023, compared to 0.36% at September
30, 2022 and 0.10% at June 30,
2023. Non-accrual loans were $1.9
million at September 30, 2023,
a decrease from $4.4 million at
September 30, 2022 and an increase
from $235 thousand at June 30, 2023. The decrease in non-accrual loans
from the prior year comparative quarter was related to the
resolution of one large commercial relationship. Loans past due 90
days or more and still accruing interest decreased from the linked
quarter by $411 thousand and
increased $467 thousand since
September 30, 2022. The increase over
the prior year comparative quarter is due primarily to two
residential mortgage credits which are in the process of
foreclosure.
The Company recognized a provision for credit losses of
$505 thousand during the third
quarter of 2023 compared to $361
thousand during the second quarter of 2023 and $402 thousand during the third quarter of 2022.
The provision for credit losses for the third quarter of 2023
reflected a provision of $478
thousand for loans and a provision for unfunded commitments
of $27 thousand. The allowance for
credit losses (ACL) at September 30,
2023 was $12.1 million and
included an allowance for credit losses on loans of $11.8 million and a reserve for unfunded
commitments of $293 thousand. The
allowance for credit losses on loans as a percentage of loans held
for investment was 1.09% at September 30,
2023, compared to 1.06% at June 30,
2023 and 1.04% at September 30,
2022. Quarterly annualized net charge-offs as a percentage
of average loans outstanding was 0.10% for the third quarter of
2023, compared to 0.08% for the second quarter of 2023 and 0.16%
for the third quarter of 2022. At September
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 third
quarter of 2023 was $11.4 million, a
decrease of $673 thousand, or 5.6%,
from the prior quarter and a decrease of $145 thousand, or 1.3%, from the third quarter of
2022. The decrease from the linked quarter and prior-year
comparative 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. For the nine months ended September
30, 2023 and 2022, net interest income was $36.3 million and $31.5
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 third quarter of 2023 was
3.33%, a decrease from 3.67% for the linked quarter and 3.75% for
the prior year quarter. On a fully tax-equivalent basis (FTE)
(non-GAAP), NIM was 3.35%, compared to 3.69% for the second quarter
of 2023 and 3.78% for the third quarter of 2022. Average
earning asset balances for the third quarter increased $135.7 million period-over-period with yields on
average earning assets increasing 99 basis points due to deployment
of liquidity into higher earning assets and the effects of the
rising interest rate environment. Average loans increased
$148.1 million, or 15.8%, and
$183.9 million, or 20.6%, for the
third quarter and first nine months of 2023, respectively, compared
to the same periods of 2022. Average loan yields were higher
for the third quarter and first nine 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 78 basis points and 107 basis points higher in the third
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 $208.4 million for the third quarter of 2023
compared to the same period of 2022, with costs increasing 191
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 federal funds purchased and short
term FHLB advances during the first nine months of 2023 to help
fund loan growth. During the first nine months of 2023, average
earning assets and average interest-bearing liabilities increased
$90.5 million and $138.5 million, over the 2022 comparative period,
respectively.
Beginning in 2022 and continuing in 2023, market interest rates
have 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 ultimately 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 third quarter of
2023 as well as the second quarter of 2023, compared to
$3.4 million for the third quarter of
2022. Increases during the third quarter in other service charges,
commissions, and fees, mortgage banking income, and bank-owned life
insurance income were largely offset by decreases in fiduciary and
asset management fees, and service charges on deposit accounts
resulting in a slight increase compared to the linked quarter. The
increase over the prior year quarter was primarily driven by
increases in fiduciary and asset management fees, bank-owned life
insurance income, and mortgage banking income partially offset by
decreases in service charges on deposit accounts and other service
charges, commissions, and fees. Noninterest income for the nine
months ended September 30, 2023,
stayed flat at $10.4 million compared
to the nine months ended September 30,
2022. Gains on sales of fixed assets of $200 thousand and net losses on sales of
available-for-sale securities and repossessed assets of
$134 thousand and $69 thousand, respectively, were recognized
during the second and third quarter of 2023 which impacted the
quarterly and year-to-date comparatives and are not expected to be
repeated.
Noninterest Expense
Noninterest expense totaled
$12.9 million for the third quarter
of 2023 compared to $13.1 million for
the second quarter of 2023 and $11.6
million for the third quarter of 2022. The decrease from the
linked quarter of $265 thousand was
primarily due to decreases in salaries and employee benefits and
professional services partially offset by increases in customer
development. The increase over the prior year quarter was primarily
driven by increased salaries and employee benefit expense,
occupancy and equipment, and data processing. The increase in
salaries 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 nine 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 nine months ended
September 30, 2023, noninterest
expense increased $4.8 million, or
14.5% over the nine months ended September
30, 2022, primarily due to increases in salaries and
employee benefits, data processing, ATM and other losses, and other
operating expenses.
Capital Management and Dividends
For the third 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 third quarter of 2022. The dividend represents a payout
ratio of 51.8% of earnings per share for the third quarter of 2023
and 33.8% cumulatively through the first nine months 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 $792
thousand at September 30,
2023, compared to December 31,
2022, due primarily to $6.2
million of net income for the year partially offset by
unrealized losses in the market value of securities
available-for-sale, which are recognized as a component of
accumulated other comprehensive loss, dividends, and 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 September 30, 2023, the book
value per share of the Company's common stock was $19.75, and tangible book value per share
(non-GAAP) was $19.39. 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 nine months ended September 30, 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 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, 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; 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
|
September
30,
|
December 31,
|
(dollars in thousands,
except share data)
|
2023
|
2022
|
|
(unaudited)
|
|
Assets
|
|
|
|
|
|
Cash and due from
banks
|
$
14,501
|
$
15,670
|
Interest-bearing due
from banks
|
62,508
|
3,580
|
Federal funds
sold
|
632
|
-
|
Cash and cash
equivalents
|
77,641
|
19,250
|
Securities
available-for-sale, at fair value
|
200,617
|
225,518
|
Restricted securities,
at cost
|
5,176
|
3,434
|
Loans held for
sale
|
292
|
421
|
Loans, net
|
1,070,834
|
1,016,559
|
Premises and equipment,
net
|
30,262
|
31,008
|
Premises and equipment,
held for sale
|
344
|
987
|
Bank-owned life
insurance
|
34,826
|
34,049
|
Goodwill
|
1,650
|
1,650
|
Core deposit
intangible, net
|
198
|
231
|
Other assets
|
25,223
|
22,228
|
Total assets
|
$
1,447,063
|
$ 1,355,335
|
|
|
|
Liabilities &
Stockholders' Equity
|
|
|
|
|
|
Deposits:
|
|
|
Noninterest-bearing
deposits
|
$
348,316
|
$
418,582
|
Savings
deposits
|
619,799
|
584,527
|
Time
deposits
|
269,493
|
152,910
|
Total
deposits
|
1,237,608
|
1,156,019
|
Overnight repurchase
agreements
|
1,323
|
4,987
|
Federal funds
purchased
|
-
|
11,378
|
Federal Home Loan Bank
advances
|
69,450
|
46,100
|
Long term
borrowings
|
29,636
|
29,538
|
Accrued expenses and
other liabilities
|
9,520
|
8,579
|
Total
liabilities
|
1,347,537
|
1,256,601
|
|
|
|
Stockholders'
equity:
|
|
|
Common stock, $5 par
value, 10,000,000 shares authorized;
5,038,066 and 4,999,083 shares outstanding (includes 54,593
and 46,989 of nonvested restricted stock, respectively)
|
24,917
|
24,761
|
Additional paid-in
capital
|
16,957
|
16,593
|
Retained
earnings
|
81,292
|
78,147
|
Accumulated other
comprehensive loss, net
|
(23,640)
|
(20,767)
|
Total stockholders'
equity
|
99,526
|
98,734
|
Total liabilities and
stockholders' equity
|
$
1,447,063
|
$ 1,355,335
|
Old Point Financial
Corporation and Subsidiaries
|
|
|
|
|
|
|
Consolidated
Statements of Income (unaudited)
|
Three Months
Ended
|
|
Nine Months
Ended
|
(dollars in thousands,
except per share data)
|
Sep. 30,
2023
|
Jun. 30,
2023
|
Sep. 30,
2022
|
|
Sep. 30,
2023
|
Sep. 30,
2022
|
|
|
|
|
|
|
|
Interest and
Dividend Income:
|
|
|
|
|
|
|
Loans, including
fees
|
$
14,311
|
$
14,185
|
$
10,506
|
|
$
41,537
|
$
29,173
|
Due from
banks
|
838
|
93
|
252
|
|
995
|
533
|
Federal funds
sold
|
9
|
9
|
11
|
|
24
|
18
|
Securities:
|
|
|
|
|
|
|
Taxable
|
1,788
|
1,772
|
1,297
|
|
5,324
|
3,409
|
Tax-exempt
|
159
|
209
|
272
|
|
580
|
732
|
Dividends and interest
on all other securities
|
84
|
79
|
30
|
|
229
|
58
|
Total interest and
dividend income
|
17,189
|
16,347
|
12,368
|
|
48,689
|
33,923
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
Checking and savings
deposits
|
2,060
|
1,569
|
147
|
|
4,483
|
471
|
Time
deposits
|
2,456
|
1,419
|
312
|
|
4,412
|
993
|
Federal funds
purchased, securities sold under
|
|
|
|
|
|
|
agreements to
repurchase and other borrowings
|
-
|
2
|
43
|
|
39
|
45
|
Federal Home Loan Bank
advances
|
952
|
963
|
-
|
|
2,532
|
-
|
Long term
borrowings
|
295
|
295
|
295
|
|
885
|
885
|
Total interest
expense
|
5,763
|
4,248
|
797
|
|
12,351
|
2,394
|
Net interest
income
|
11,426
|
12,099
|
11,571
|
|
36,338
|
31,529
|
Provision for credit
losses
|
505
|
361
|
402
|
|
1,242
|
1,073
|
Net interest income
after provision for credit losses
|
10,921
|
11,738
|
11,169
|
|
35,096
|
30,456
|
|
|
|
|
|
|
|
Noninterest
Income:
|
|
|
|
|
|
|
Fiduciary and asset
management fees
|
1,012
|
1,154
|
953
|
|
3,282
|
3,086
|
Service charges on
deposit accounts
|
751
|
793
|
795
|
|
2,297
|
2,278
|
Other service charges,
commissions and fees
|
1,119
|
1,027
|
1,143
|
|
3,255
|
3,339
|
Bank-owned life
insurance income
|
263
|
259
|
227
|
|
776
|
653
|
Mortgage banking
income
|
144
|
112
|
86
|
|
351
|
419
|
Gain (loss) on sale of
available-for-sale securities, net
|
30
|
(164)
|
-
|
|
(134)
|
-
|
(Loss) on sale of
repossessed assets
|
-
|
(69)
|
-
|
|
(69)
|
-
|
Gain on sale of fixed
assets
|
-
|
200
|
-
|
|
200
|
-
|
Other operating
income
|
163
|
165
|
161
|
|
422
|
605
|
Total noninterest
income
|
3,482
|
3,477
|
3,365
|
|
10,380
|
10,380
|
|
|
|
|
|
|
|
Noninterest
Expense:
|
|
|
|
|
|
|
Salaries and employee
benefits
|
7,830
|
8,043
|
6,821
|
|
23,236
|
19,854
|
Occupancy and
equipment
|
1,241
|
1,255
|
1,184
|
|
3,691
|
3,488
|
Data
processing
|
1,300
|
1,264
|
1,206
|
|
3,743
|
3,447
|
Customer
development
|
159
|
101
|
136
|
|
373
|
298
|
Professional
services
|
636
|
756
|
647
|
|
2,065
|
1,915
|
Employee professional
development
|
257
|
289
|
230
|
|
780
|
769
|
Other taxes
|
251
|
234
|
212
|
|
698
|
637
|
ATM and other
losses
|
154
|
154
|
112
|
|
563
|
226
|
Other operating
expenses
|
1,053
|
1,051
|
1,017
|
|
3,047
|
2,734
|
Total noninterest
expense
|
12,881
|
13,147
|
11,565
|
|
38,196
|
33,368
|
Income before income
taxes
|
1,522
|
2,068
|
2,969
|
|
7,280
|
7,468
|
Income tax
expense
|
160
|
266
|
427
|
|
1,033
|
1,003
|
Net income
|
$
1,362
|
$
1,802
|
$
2,542
|
|
$
6,247
|
$
6,465
|
|
|
|
|
|
|
|
Basic Earnings per
Common Share:
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
5,037,558
|
5,023,305
|
5,015,712
|
|
5,020,269
|
5,095,716
|
Net income per share of
common stock
|
$
0.27
|
$
0.36
|
$
0.51
|
|
$
1.24
|
$
1.27
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share:
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
5,037,662
|
5,023,603
|
5,015,712
|
|
5,020,447
|
5,095,768
|
Net income per share of
common stock
|
$
0.27
|
$
0.36
|
$
0.51
|
|
$
1.24
|
$
1.27
|
|
|
|
|
|
|
|
Cash Dividends
Declared per Share:
|
$
0.14
|
$
0.14
|
$
0.13
|
|
$
0.42
|
$
0.39
|
Old Point Financial
Corporation and Subsidiaries
|
|
|
|
|
Average Balance
Sheets, Net Interest Income And Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarters
ended September 30,
|
(unaudited)
|
2023
|
2022
|
|
|
Interest
|
|
|
Interest
|
|
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
(dollars in
thousands)
|
Balance
|
Expense
|
Rate**
|
Balance
|
Expense
|
Rate**
|
ASSETS
|
|
|
|
|
|
|
Loans*
|
$ 1,086,180
|
$ 14,311
|
5.23 %
|
$
938,110
|
$ 10,516
|
4.45 %
|
Investment
securities:
|
|
|
|
|
|
|
Taxable
|
176,445
|
1,788
|
4.02 %
|
190,728
|
1,297
|
2.70 %
|
Tax-exempt*
|
30,128
|
201
|
2.64 %
|
46,046
|
345
|
2.97 %
|
Total investment
securities
|
206,573
|
1,989
|
3.82 %
|
236,774
|
1,642
|
2.75 %
|
Interest-bearing due
from banks
|
61,446
|
839
|
5.41 %
|
45,250
|
252
|
2.21 %
|
Federal funds
sold
|
714
|
9
|
5.16 %
|
2,201
|
11
|
2.05 %
|
Other
investments
|
4,808
|
83
|
6.84 %
|
1,650
|
30
|
6.92 %
|
Total earning
assets
|
1,359,721
|
$ 17,231
|
5.03 %
|
1,223,985
|
$ 12,451
|
4.04 %
|
Allowance for credit
losses
|
(11,912)
|
|
|
(10,015)
|
|
|
Other non-earning
assets
|
105,130
|
|
|
99,676
|
|
|
Total assets
|
$ 1,452,939
|
|
|
$ 1,313,646
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Time and savings
deposits:
|
|
|
|
|
|
|
Interest-bearing
transaction accounts
|
$ 91,139
|
$
4
|
0.01 %
|
$ 79,620
|
$
3
|
0.01 %
|
Money market deposit
accounts
|
430,236
|
2,049
|
1.89 %
|
375,555
|
135
|
0.14 %
|
Savings
accounts
|
98,758
|
8
|
0.03 %
|
123,604
|
9
|
0.03 %
|
Time
deposits
|
263,167
|
2,455
|
3.70 %
|
155,989
|
312
|
0.79 %
|
Total time and savings
deposits
|
883,300
|
4,516
|
2.03 %
|
734,768
|
459
|
0.25 %
|
Federal funds
purchased, repurchase
|
|
|
|
|
|
|
agreements and other
borrowings
|
1,972
|
0
|
0.05 %
|
11,667
|
43
|
1.46 %
|
Federal Home Loan Bank
advances
|
69,450
|
952
|
5.36 %
|
-
|
-
|
0.00 %
|
Long term
borrowings
|
29,619
|
295
|
3.90 %
|
29,485
|
295
|
3.92 %
|
Total interest-bearing
liabilities
|
984,341
|
5,763
|
2.32 %
|
775,920
|
797
|
0.41 %
|
Demand
deposits
|
356,752
|
|
|
429,928
|
|
|
Other
liabilities
|
8,996
|
|
|
5,500
|
|
|
Stockholders'
equity
|
102,850
|
|
|
102,298
|
|
|
Total liabilities and
stockholders' equity
|
$ 1,452,939
|
|
|
$ 1,313,646
|
|
|
Net interest
margin*
|
|
$ 11,468
|
3.35 %
|
|
$ 11,654
|
3.78 %
|
|
|
|
|
|
|
|
*Computed on a fully
tax-equivalent basis (non-GAAP) using a 21% rate, adjusting
interest income
|
by $42 thousand
and $83 thousand for September 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 September 30,
|
(unaudited)
|
2023
|
2022
|
|
|
Interest
|
|
|
Interest
|
|
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
(dollars in
thousands)
|
Balance
|
Expense
|
Rate**
|
Balance
|
Expense
|
Rate**
|
ASSETS
|
|
|
|
|
|
|
Loans*
|
$ 1,077,038
|
$ 41,539
|
5.16 %
|
$
893,133
|
$ 29,206
|
4.37 %
|
Investment
securities:
|
|
|
|
|
|
|
Taxable
|
181,969
|
5,324
|
3.91 %
|
196,475
|
3,409
|
2.32 %
|
Tax-exempt*
|
35,365
|
734
|
2.77 %
|
42,208
|
927
|
2.94 %
|
Total investment
securities
|
217,334
|
6,058
|
3.73 %
|
238,683
|
4,336
|
2.43 %
|
Interest-bearing due
from banks
|
25,385
|
995
|
5.24 %
|
97,642
|
533
|
0.73 %
|
Federal funds
sold
|
670
|
24
|
4.79 %
|
3,514
|
18
|
0.70 %
|
Other
investments
|
4,420
|
229
|
6.91 %
|
1,396
|
58
|
5.47 %
|
Total earning
assets
|
1,324,847
|
$ 48,845
|
4.93 %
|
1,234,368
|
$ 34,151
|
3.70 %
|
Allowance for credit
losses
|
(11,663)
|
|
|
(9,861)
|
|
|
Other nonearning
assets
|
105,462
|
|
|
96,897
|
|
|
Total assets
|
$ 1,418,646
|
|
|
$ 1,321,404
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Time and savings
deposits:
|
|
|
|
|
|
|
Interest-bearing
transaction accounts
|
$ 80,672
|
$
9
|
0.02 %
|
$ 75,641
|
$
8
|
0.01 %
|
Money market deposit
accounts
|
432,224
|
4,450
|
1.38 %
|
385,929
|
433
|
0.15 %
|
Savings
accounts
|
106,537
|
24
|
0.03 %
|
126,965
|
30
|
0.03 %
|
Time
deposits
|
204,647
|
4,412
|
2.88 %
|
161,885
|
993
|
0.82 %
|
Total time and savings
deposits
|
824,080
|
8,895
|
1.44 %
|
750,420
|
1,464
|
0.26 %
|
Federal funds
purchased, repurchase
|
|
|
|
|
|
|
agreements and other
borrowings
|
4,941
|
39
|
1.07 %
|
6,753
|
45
|
0.88 %
|
Federal Home Loan Bank
advances
|
66,505
|
2,532
|
5.09 %
|
-
|
-
|
0.00 %
|
Long term
borrowings
|
29,585
|
885
|
4.00 %
|
29,453
|
885
|
4.02 %
|
Total interest-bearing
liabilities
|
925,111
|
12,351
|
1.79 %
|
786,626
|
2,394
|
0.41 %
|
Demand
deposits
|
382,908
|
|
|
420,527
|
|
|
Other
liabilities
|
8,492
|
|
|
5,649
|
|
|
Stockholders'
equity
|
102,135
|
|
|
108,602
|
|
|
Total liabilities and
stockholders' equity
|
$ 1,418,646
|
|
|
$ 1,321,404
|
|
|
Net interest
margin*
|
|
$ 36,494
|
3.68 %
|
|
$ 31,757
|
3.44 %
|
|
|
|
|
|
|
|
*Computed on a fully
tax-equivalent basis (non-GAAP) using a 21% rate, adjusting
interest income
|
by $156 thousand
and $228 thousand for September 30, 2023 and 2022,
respectively.
|
|
|
**Annualized
|
|
|
|
|
Old Point Financial
Corporation and Subsidiaries
|
As of or for the
quarters ended,
|
|
For the nine months
ended,
|
Selected Ratios
(unaudited)
|
September
30,
|
June 30,
|
September
30,
|
|
September
30,
|
September
30,
|
(dollars in thousands,
except per share data)
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
Earnings per common
share, diluted
|
$
0.27
|
$
0.36
|
$
0.51
|
|
$
1.24
|
$
1.27
|
Return on average
assets (ROA)
|
0.37 %
|
0.51 %
|
0.77 %
|
|
0.59 %
|
0.65 %
|
Return on average
equity (ROE)
|
5.25 %
|
7.01 %
|
9.86 %
|
|
8.18 %
|
7.96 %
|
Net Interest Margin
(FTE) (non-GAAP)
|
3.35 %
|
3.69 %
|
3.78 %
|
|
3.68 %
|
3.44 %
|
Efficiency
ratio
|
86.40 %
|
84.41 %
|
77.43 %
|
|
81.76 %
|
79.62 %
|
Efficiency ratio (FTE)
(non-GAAP)
|
86.16 %
|
84.10 %
|
77.01 %
|
|
81.49 %
|
79.19 %
|
Book value per
share
|
19.75
|
20.36
|
18.71
|
|
|
|
Tangible Book Value per
share (non-GAAP)
|
19.39
|
19.99
|
18.34
|
|
|
|
Non-performing assets
(NPAs) / total assets
|
0.19 %
|
0.10 %
|
0.36 %
|
|
|
|
Annualized Net
Charge-Offs / average total loans
|
0.09 %
|
0.08 %
|
0.16 %
|
|
|
|
Allowance for credit
losses on loans / total loans
|
1.09 %
|
1.06 %
|
1.04 %
|
|
|
|
Allowance for credit
losses / total loans
|
1.12 %
|
1.09 %
|
1.04 %
|
|
|
|
|
|
|
|
|
|
|
Non-Performing Assets
(NPAs)
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
1,918
|
$
235
|
$
4,375
|
|
|
|
Loans > 90 days past
due, but still accruing interest
|
797
|
1,208
|
330
|
|
|
|
Other real estate
owned
|
-
|
-
|
-
|
|
|
|
Total non-performing
assets
|
$
2,715
|
$
1,443
|
$
4,705
|
|
|
|
|
|
|
|
|
|
|
Other Selected
Numbers
|
|
|
|
|
|
|
Loans, net
|
$
1,070,834
|
$
1,082,965
|
$
945,132
|
|
|
|
Deposits
|
1,237,608
|
1,228,715
|
1,182,308
|
|
|
|
Stockholders'
equity
|
99,526
|
102,542
|
93,512
|
|
|
|
Total assets
|
1,447,063
|
1,443,059
|
1,317,006
|
|
|
|
Loans charged off
during the quarter, net of recoveries
|
237
|
210
|
365
|
|
|
|
Quarterly average
loans
|
1,086,180
|
1,088,723
|
938,110
|
|
|
|
Quarterly average
assets
|
1,452,939
|
1,417,892
|
1,313,646
|
|
|
|
Quarterly average
earning assets
|
1,359,721
|
1,322,886
|
1,223,985
|
|
|
|
Quarterly average
deposits
|
1,240,052
|
1,194,893
|
1,164,696
|
|
|
|
Quarterly average
equity
|
102,850
|
103,075
|
102,298
|
|
|
|
Old Point Financial
Corporation and Subsidiaries
|
|
|
|
|
Reconciliation of
Certain Non-GAAP Financial Measures (unaudited)
|
|
|
|
|
(dollars in thousands,
except per share data)
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Sep. 30,
2023
|
Jun. 30,
2023
|
Sep. 30,
2022
|
|
Sep. 30,
2023
|
Sep. 30,
2022
|
|
|
|
|
|
|
|
Fully Taxable
Equivalent Net Interest Income
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
$
11,426
|
$
12,099
|
$
11,571
|
|
$
36,338
|
$
31,529
|
FTE
adjustment
|
42
|
56
|
83
|
|
156
|
228
|
Net interest income
(FTE) (non-GAAP)
|
$
11,468
|
$
12,155
|
$
11,654
|
|
$
36,494
|
$
31,757
|
Noninterest income
(GAAP)
|
3,482
|
3,477
|
3,365
|
|
10,380
|
10,380
|
Total revenue (FTE)
(non-GAAP)
|
$
14,950
|
$
15,632
|
$
15,019
|
|
$
46,874
|
$
42,137
|
Noninterest expense
(GAAP)
|
12,881
|
13,147
|
11,565
|
|
38,196
|
33,368
|
|
|
|
|
|
|
|
Average earning
assets
|
$ 1,359,721
|
$ 1,322,886
|
$ 1,223,985
|
|
$ 1,324,847
|
$ 1,234,368
|
Net interest
margin
|
3.33 %
|
3.67 %
|
3.75 %
|
|
3.67 %
|
3.42 %
|
Net interest margin
(FTE) (non-GAAP)
|
3.35 %
|
3.69 %
|
3.78 %
|
|
3.68 %
|
3.44 %
|
|
|
|
|
|
|
|
Efficiency
ratio
|
86.40 %
|
84.41 %
|
77.43 %
|
|
81.76 %
|
79.62 %
|
Efficiency ratio (FTE)
(non-GAAP)
|
86.16 %
|
84.10 %
|
77.01 %
|
|
81.49 %
|
79.19 %
|
|
|
|
|
|
|
|
Tangible Book Value
Per Share
|
|
|
|
|
|
|
Total Stockholders
Equity (GAAP)
|
$
99,526
|
$
102,542
|
$
93,512
|
|
|
|
Less
goodwill
|
1,650
|
1,650
|
1,650
|
|
|
|
Less core deposit
intangible, net
|
198
|
209
|
242
|
|
|
|
Tangible Stockholders
Equity (non-GAAP)
|
$
97,678
|
$
100,683
|
$
91,620
|
|
|
|
|
|
|
|
|
|
|
Shares issued and
outstanding
|
5,038,066
|
5,037,275
|
4,996,728
|
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
$
19.75
|
$
20.36
|
$
18.71
|
|
|
|
Tangible book value per
share (non-GAAP)
|
$
19.39
|
$
19.99
|
$
18.34
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/old-point-releases-third-quarter-2023-results-301969462.html
SOURCE Old Point Financial Corporation