HAMPTON,
Va., Jan. 26, 2023 /PRNewswire/ -- Old Point
Financial Corporation (the Company or Old Point) (NASDAQ "OPOF")
reported net income of $2.6 million
and earnings per diluted common share of $0.53 for the fourth quarter of 2022 compared to
net income of $1.7 million and
earnings per diluted common share of $0.32 for the fourth quarter of 2021. Net income
for the years ended December 31, 2022
and 2021 was $9.1 million, or
$1.80 earnings per diluted common
share, and $8.4 million, or
$1.61 earnings per diluted common
share, respectively.
Robert Shuford, Jr., Chairman,
President and CEO of the Company and Old Point National Bank (the
Bank) said, "Old Point's full-year 2022 performance delivered
record levels of top line revenue, net income, and loan growth.
Strategic actions to grow talent in lending, target balance sheet
growth that optimizes income generation, control cost of funding,
diversify revenue streams, and maintain a strong credit environment
illustrate the Company's ability to deliver strong results through
an economic cycle characterized by a dynamic interest rate
environment and the highest inflation in decades. We are very
excited by the momentum generated in 2022 and look forward to
continued trends in our 100th anniversary
year."
Highlights of the fourth quarter and year ended December 31, 2022 are as follows:
- Net loans held for investment grew $182.9 million from December 31, 2021. PPP loans outstanding were
$530 thousand at December 31, 2022 compared to $19.0 million at December
31, 2021. Loans held for investment, (net of deferred fees
and costs), excluding PPP (non-GAAP), grew $202.0 million, or 24.5%, to $1.0 billion, from December 31, 2021.
- Return on average equity (ROE) increased to 11.0% for the
fourth quarter of 2022, compared to 9.9% for the third quarter of
2022, and 5.5% for the prior year quarter. For the years ended
December 31, 2022 and 2021, ROE was
8.7% and 7.0%, respectively.
- Net interest margin (NIM) improved to 4.14% in the fourth
quarter of 2022, increasing from 3.75% in the third quarter of 2022
and 3.07% in the fourth quarter of 2021. NIM on a fully
tax-equivalent basis (FTE) (non-GAAP) improved to 4.17% in the
fourth quarter of 2022 from 3.78% in the linked quarter and 3.09%
in the fourth quarter of 2021.
- Net interest income for the fourth quarter of 2022 increased
$1.3 million, or 11.6%, compared to
the prior quarter and $3.3 million,
or 33.7%, compared to the fourth quarter of 2021. For the years
ended December 31, 2022 and 2021, net
interest income was $44.4 million and
$38.8 million, respectively.
- Net PPP fees recognized for the year ended December 31, 2022, were $699 thousand, down from $3.2 million for the comparative 2021 period.
- Provision for loan losses of $633
thousand was recognized for the fourth quarter of 2022,
compared to $402 thousand for the
third quarter of 2022 and $284
thousand for the fourth quarter of 2021. For the years ended
December 31, 2022 and 2021, the
provision for loan losses was $1.7
million and $794 thousand,
respectively.
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, 2022 increased by $17.2 million from December 31, 2021. Net loans held for investment
increased $182.9 million, or 21.9%
from December 31, 2021 to
$1.0 billion at December 31, 2022. Loans held for investment (net
of deferred fees), excluding PPP, (non-GAAP) grew 24.5%, or
$202.0 million, from December 31, 2021 to December 31, 2022 driven by diversified loan
growth in the following segments: commercial real estate of
$42.8 million, construction, land
development, and other land loans of $19.3
million, residential real estate of $47.7 million, and indirect automobile of
$77.9 million. Securities
available-for-sale, at fair value, decreased $8.8 million from December
31, 2021 to $225.5 million at
December 31, 2022.
Total deposits of $1.2 billion as
of December 31, 2022 decreased
$21.1 million, or 1.8%, from
December 31, 2021.
Noninterest-bearing deposits decreased $2.9
million, or 0.7%, savings deposits decreased $1.9 million, or 0.3%, and time deposits
decreased $16.2 million, or 9.6%.
Overnight repurchase agreements, federal funds purchased and
short-term Federal Home Loan Bank advances increased to
$62.5 million at December 31, 2022 from $4.5 million at December
31, 2021.
The Company's total stockholders' equity at December 31, 2022 decreased $22.1 million, or 18.3%, from December 31, 2021 to $98.7
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 268,095 shares, for an aggregate
purchase price of $6.7 million during
2022, under the Company's prior share repurchase program authorized
in October 2021. The decline in
market value for the securities available-for-sale during 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 11.71% at
December 31, 2022 as compared to
12.21% at December 31, 2021. The
Bank's leverage ratio was 9.43% at December
31, 2022 as compared to 9.09% at December 31, 2021.
Non-performing assets (NPAs) totaled $2.1
million as of December 31,
2022 compared to $4.7 million
as of September 30, 2022 and
$1.5 million at December 31, 2021. NPAs as a percentage of total
assets was 0.15% at December 31,
2022, compared to 0.36% at September
30, 2022 and 0.11% at December 31,
2021. Non-accrual loans were $1.2
million at December 31, 2022,
a decrease from $4.4 million at
September 30, 2022 and an increase
from $478 thousand at December 31, 2021. The decrease in non-accrual
loans during the fourth quarter was related to resolution of one
large commercial relationship. Loans past due 90 days or more and
still accruing interest decreased $185
thousand to $840 thousand at
December 31, 2022 from $1.0 million at December
31, 2021 but increased $510
thousand from $330 thousand at
September 30, 2022.
The Company recognized a provision for loan losses of
$633 thousand during the fourth
quarter of 2022 compared to $402
thousand during the third quarter of 2022 and $284 thousand during the fourth quarter of 2021.
The provision expense increase in the fourth quarter as compared to
the third quarter of 2022 was a function of continued loan growth.
The allowance for loan and lease losses (ALLL) was $10.5 million at December
31, 2022 compared to $9.9
million at both September 30,
2022 and December 31, 2021.
The increase in the ALLL at December 31,
2022 compared to December 31,
2021 was primarily attributable to the increase in loans
held for investment, excluding PPP loans (non-GAAP). The ALLL as a
percentage of loans held for investment was 1.02% at December 31, 2022 compared to 1.04% at
September 30, 2022 and 1.17% at
December 31, 2021. Excluding PPP
loans, the ALLL as a percentage of loans held for investment
(non-GAAP) was 1.03% at December 31,
2022, 1.04% at September 30,
2022, and 1.20% at December 31,
2021. The decrease in the ALLL as a percentage of loans held
for investment at December 31, 2022
compared to December 31, 2021 was
primarily attributable to continued improvement in historical
qualitative loss rates and 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 0.02% for the fourth quarter of 2022, compared to
0.16% for the third quarter of 2022 and 0.05% for the fourth
quarter of 2021. As of December 31,
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 possible and estimable losses inherent in the
loan portfolio; however, if elevated levels of risk are identified,
provision for loan losses may increase in future periods.
Net Interest Income
Net interest income for the fourth
quarter of 2022 was $12.9 million, an
increase of $1.3 million, or 11.6%,
from the prior quarter and $3.3
million, or 33.7%, from the fourth quarter of 2021. The
increase from the prior-year comparative quarter was due primarily
to: (i) deployment of lower yielding cash to fund growth in higher
yielding loans and investments; (ii) higher average yields on
earning asset balances due to the effect of rising market interest
rates; partially offset by (iii) higher average interest-bearing
liabilities at higher average rates. For the years ended
December 31, 2022 and 2021, net
interest income was $44.4 million and
$38.8 million, respectively. The
increase from the prior-year comparative period was primarily due
to higher average earning assets at higher average earning yields,
despite the lower volume during 2022 of accelerated recognition of
net deferred fees related to PPP forgiveness.
The Net Interest Margin (NIM) for the fourth quarter of 2022 was
4.14%, an increase from 3.75% for the linked quarter and 3.07% for
the prior year quarter. On a fully tax-equivalent basis (FTE)
(non-GAAP), NIM was 4.17% for the fourth quarter of 2022, up from
3.78% for the third quarter of 2022 and 3.09% for the fourth
quarter of 2021. NIM expansion for the fourth quarter of 2022
compared to the prior year quarter was due to a 117-basis point
increase in yields on average earning assets due to deployment of
liquidity into higher earning assets and the effects of rising
interest rates in 2022, partially offset by a 13-basis point
increase in the cost of interest-bearing liabilities. The higher
interest cost on liabilities was due to additional borrowing costs
associated with federal funds purchased and short term FHLB
advances during the period. Average loans increased $138.2 million, or 16.1%, and $78.2 million, or 9.3%, for the fourth quarter
and year ended 2022 compared to the same periods of 2021.
Average loan yields were 50 basis points higher in the fourth
quarter due primarily to the effects of rising interest rates in
2022. For the year ended 2022 compared to the same period of
2021, average loan yields decreased slightly 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 2022. Loan fees and costs related to PPP loans were
deferred at time of loan origination, 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
$1 thousand were recognized in the
fourth quarter of 2022 compared to $77
thousand in the linked quarter and $227 thousand in the prior year quarter. Net PPP
fees recognized for the year ended December
31, 2022 were $699 thousand,
down from $3.2 million for the
comparative 2021 period. Year-over-year NIM was also impacted by
subordinated debt interest expense related to timing of issuance in
2021. During 2022, market interest rates increased, and
short-term rates are expected to continue to rise moving into 2023,
which the Company expects to continue to result in increases in
asset yields and cost of funds; 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
$3.1 million for the fourth quarter
of 2022 compared to $3.4 million for
the third quarter of 2022 and $3.6
million for the fourth quarter of 2021. Increases during the
fourth quarter of 2022 in fiduciary and asset management fees and
bank-owned life insurance were offset by decreases in other service
charges, commissions and fees compared to the linked quarter.
Although service charges on deposit accounts increased compared to
the prior year quarter, this increase was offset by lower fiduciary
and asset management fees, bank-owned life insurance, and mortgage
banking income. Noninterest income for the year ended December 31, 2022 decreased $1.4 million to $13.5
million compared to the year ended December 31, 2021, driven primarily by decreases
in mortgage banking income, fiduciary and asset management fees,
and bank-owned life insurance, partially offset by increases in
service charges on deposit accounts, other service charges,
commissions and fees, and other operating income. The decrease in
mortgage banking income for the fourth quarter and year ended
December 31, 2022 compared to the
respective 2021 periods was due to declines in volume of mortgage
originations attributable to changes in mortgage market conditions.
Gains on sales of fixed assets and losses on sales of
available-for-sale securities impact the quarterly and year ended
comparatives. During the fourth quarter of 2022, the Company
recognized gains on sales of fixed assets of $1.7 million. The Company also recognized
losses of $1.9 million on sales of
available-for-sale securities in a reinvestment strategy which
increased yield on the asset base over 300 basis points.
Noninterest Expense
Noninterest expense totaled
$12.3 million for the fourth quarter
of 2022 compared to $11.6 million for
the third quarter of 2022 and $11.1
million for the fourth quarter of 2021. The increase from
the linked quarter of $722 thousand
was primarily related to increases in salary and benefits,
professional services, and ATM and other losses. The increase over
the prior year quarter was primarily driven by increased salary and
benefit expense and other operating expenses. For the year
ended December 31, 2022, noninterest
expense increased $2.5 million, or
5.8% over the year ended December 31,
2021, primarily due to increases in salary and benefits,
professional services, employee professional development related to
recruiting, and other operating expenses. The increase in salary
and 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 is expected to reduce
existing cost structures beginning in 2023 as well as 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.
Capital Management and Dividends
For the fourth
quarter of 2022 and 2021, respectively, the Company declared
dividends of $0.13 per share. The
dividend represents a payout ratio of 24.6% of earnings per share
for the fourth 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 $22.1
million at December 31, 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 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 had 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. The Company did not execute any repurchases under
this plan during the fourth quarter of 2022.
At December 31, 2022, the book
value per share of the Company's common stock was $19.75, and tangible book value per share
(non-GAAP) was $19.37. 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 years ended December 31, 2022, the Company has provided
supplemental financial measures on a tax-equivalent, tangible or
adjusted basis. These non-GAAP financial measures are a supplement
to GAAP, which is used to prepare the Company's financial
statements, and should not be considered in isolation or as a
substitute for comparable measures calculated in accordance with
GAAP. In addition, the Company's non-GAAP financial measures may
not be comparable to non-GAAP financial measures of other
companies. The Company uses the non-GAAP financial measures
discussed herein in its analysis of the Company's performance. The
Company's management believes that these non-GAAP financial
measures provide additional understanding of ongoing operations and
enhance comparability of results of operations with prior periods
presented without the impact of items or events that may obscure
trends in the Company's underlying performance. A
reconciliation of the non-GAAP financial measures used by the
Company to evaluate and measure the Company's performance to the
most directly comparable GAAP financial measures is presented
below.
Safe Harbor Statement Regarding Forward-Looking Statements
- Statements in this press release, including without
limitation, statements made in Mr. Shuford's quotation, which use
language such as "believes," "expects," "plans," "may," "will,"
"should," "projects," "contemplates," "anticipates," "forecasts,"
"intends" and similar expressions, may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
the beliefs of Old Point's management, as well as estimates and
assumptions made by, and information available to, management, as
of the time such statements are made. These statements are
inherently uncertain, and there can be no assurance that the
underlying beliefs, estimates, or assumptions will prove to be
accurate. Actual results, performance, achievements, or trends
could differ materially from historical results or those
anticipated by such statements. The actual results or developments
anticipated may not be realized or, even if substantially realized,
they may not have the expected consequences to or effects on the
Company or its businesses or operations. Forward-looking statements
in this release may include, without limitation: statements
regarding strategic business initiatives, including vendor review
initiatives and new vendor relationships, and the future financial
impact of those initiatives; future financial performance; future
financial and economic conditions 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, 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 portfolios and changes therein; effectiveness of expense
reduction plans; an insufficient ALLL; 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, 2021, 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
|
December 31,
|
(dollars in thousands,
except share data)
|
2022
|
2021
|
|
(unaudited)
|
|
Assets
|
|
|
|
|
|
Cash and due from
banks
|
$
15,670
|
$
13,424
|
Interest-bearing due
from banks
|
3,580
|
164,073
|
Federal funds
sold
|
-
|
10,425
|
Cash and cash
equivalents
|
19,250
|
187,922
|
Securities
available-for-sale, at fair value
|
225,518
|
234,321
|
Restricted securities,
at cost
|
3,434
|
1,034
|
Loans held for
sale
|
421
|
3,287
|
Loans, net
|
1,016,559
|
833,661
|
Premises and equipment,
net
|
31,008
|
32,134
|
Premises and equipment,
held for sale
|
987
|
871
|
Bank-owned life
insurance
|
34,049
|
28,168
|
Goodwill
|
1,650
|
1,650
|
Core deposit
intangible, net
|
231
|
275
|
Other assets
|
22,228
|
14,832
|
Total assets
|
$
1,355,335
|
$ 1,348,580
|
|
|
|
Liabilities &
Stockholders' Equity
|
|
|
|
|
|
Deposits:
|
|
|
Noninterest-bearing
deposits
|
$
418,582
|
$
421,531
|
Savings
deposits
|
584,527
|
586,450
|
Time
deposits
|
152,910
|
169,118
|
Total
deposits
|
1,156,019
|
1,177,099
|
Overnight repurchase
agreements
|
4,987
|
4,536
|
Federal funds
purchased
|
11,378
|
-
|
Federal Home Loan Bank
advances
|
46,100
|
-
|
Federal Reserve Bank
borrowings
|
-
|
480
|
Long term
borrowings
|
29,538
|
29,407
|
Accrued expenses and
other liabilities
|
8,579
|
5,815
|
Total
liabilities
|
1,256,601
|
1,217,337
|
|
|
|
Stockholders'
equity:
|
|
|
Common stock, $5 par
value, 10,000,000 shares authorized; 4,999,083 and 5,239,707 shares
outstanding (includes 46,989 and 38,435 of nonvested restricted
stock, respectively)
|
24,761
|
26,006
|
Additional paid-in
capital
|
16,593
|
21,458
|
Retained
earnings
|
78,147
|
71,679
|
Accumulated other
comprehensive (loss) income, net
|
(20,767)
|
1,675
|
Total stockholders'
equity
|
98,734
|
120,818
|
Total liabilities and
stockholders' equity
|
$
1,355,335
|
$ 1,338,155
|
|
|
|
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,
2022
|
Sep. 30,
2022
|
Dec. 31,
2021
|
|
Dec. 31,
2022
|
Dec. 31,
2021
|
|
|
|
|
|
|
|
Interest and
Dividend Income:
|
|
|
|
|
|
|
Loans, including
fees
|
$
12,234
|
$
10,506
|
$
9,452
|
|
$
41,407
|
$
37,912
|
Due from
banks
|
65
|
252
|
67
|
|
598
|
230
|
Federal funds
sold
|
3
|
11
|
3
|
|
21
|
3
|
Securities:
|
|
|
|
|
|
|
Taxable
|
1,527
|
1,297
|
870
|
|
4,936
|
3,284
|
Tax-exempt
|
262
|
272
|
195
|
|
994
|
753
|
Dividends and interest
on all other securities
|
29
|
30
|
13
|
|
87
|
70
|
Total interest and
dividend income
|
14,120
|
12,368
|
10,600
|
|
48,043
|
42,252
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
Checking and savings
deposits
|
275
|
147
|
245
|
|
746
|
938
|
Time
deposits
|
410
|
312
|
405
|
|
1,403
|
1,941
|
Federal funds
purchased, securities sold under
|
|
|
|
|
|
|
agreements to
repurchase and other borrowings
|
66
|
43
|
2
|
|
69
|
35
|
Federal Home Loan Bank
advances
|
165
|
-
|
-
|
|
207
|
-
|
Long term
borrowings
|
295
|
295
|
292
|
|
1,180
|
544
|
Total interest
expense
|
1,211
|
797
|
944
|
|
3,605
|
3,458
|
Net interest
income
|
12,909
|
11,571
|
9,656
|
|
44,438
|
38,794
|
Provision for loan
losses
|
633
|
402
|
284
|
|
1,706
|
794
|
Net interest income
after provision for loan losses
|
12,276
|
11,169
|
9,372
|
|
42,732
|
38,000
|
|
|
|
|
|
|
|
Noninterest
Income:
|
|
|
|
|
|
|
Fiduciary and asset
management fees
|
1,011
|
953
|
1,088
|
|
4,097
|
4,198
|
Service charges on
deposit accounts
|
791
|
795
|
700
|
|
3,069
|
2,697
|
Other service charges,
commissions and fees
|
1,044
|
1,143
|
1,063
|
|
4,383
|
4,338
|
Bank-owned life
insurance income
|
256
|
227
|
389
|
|
909
|
1,014
|
Mortgage banking
income
|
78
|
86
|
251
|
|
497
|
2,280
|
(Loss) on sale of
available-for-sale securities, net
|
(1,870)
|
-
|
-
|
|
(1,870)
|
-
|
Gain on sale of fixed
assets
|
1,690
|
-
|
-
|
|
1,690
|
-
|
Other operating
income
|
125
|
161
|
116
|
|
730
|
358
|
Total noninterest
income
|
3,125
|
3,365
|
3,607
|
|
13,505
|
14,885
|
|
|
|
|
|
|
|
Noninterest
Expense:
|
|
|
|
|
|
|
Salaries and employee
benefits
|
7,201
|
6,821
|
6,349
|
|
27,055
|
25,361
|
Occupancy and
equipment
|
1,232
|
1,184
|
1,184
|
|
4,720
|
4,694
|
Data
processing
|
1,183
|
1,206
|
1,130
|
|
4,630
|
4,557
|
Customer
development
|
175
|
136
|
145
|
|
473
|
370
|
Professional
services
|
758
|
647
|
731
|
|
2,673
|
2,521
|
Employee professional
development
|
222
|
230
|
232
|
|
991
|
719
|
Other taxes
|
212
|
212
|
186
|
|
849
|
794
|
ATM and other
losses
|
309
|
112
|
280
|
|
535
|
504
|
Other operating
expenses
|
995
|
1,017
|
891
|
|
3,729
|
3,629
|
Total noninterest
expense
|
12,287
|
11,565
|
11,128
|
#
|
45,655
|
43,149
|
Income before income
taxes
|
3,114
|
2,969
|
1,851
|
#
|
10,582
|
9,736
|
Income tax
expense
|
471
|
427
|
173
|
|
1,474
|
1,296
|
Net income
|
$
2,643
|
$
2,542
|
$
1,678
|
|
$
9,108
|
$
8,440
|
|
|
|
|
|
|
|
Basic Earnings per
Common Share:
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
4,998,173
|
5,015,712
|
5,245,939
|
|
5,071,130
|
5,238,318
|
Net income per share of
common stock
|
$
0.53
|
$
0.51
|
$
0.32
|
|
$
1.80
|
$
1.61
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share:
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
4,998,173
|
5,015,712
|
5,245,942
|
|
5,071,169
|
5,238,352
|
Net income per share of
common stock
|
$
0.53
|
$
0.51
|
$
0.32
|
|
$
1.80
|
$
1.61
|
|
|
|
|
|
|
|
Cash Dividends
Declared per Share:
|
$
0.13
|
$
0.13
|
$
0.13
|
|
$
0.52
|
$
0.50
|
|
|
|
|
|
|
|
Old Point Financial
Corporation and Subsidiaries
|
|
|
|
|
Average Balance
Sheets, Net Interest Income And Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarters
ended December 31,
|
(unaudited)
|
2022
|
2021
|
|
|
Interest
|
|
|
Interest
|
|
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
(dollars in
thousands)
|
Balance
|
Expense
|
Rate**
|
Balance
|
Expense
|
Rate**
|
ASSETS
|
|
|
|
|
|
|
Loans*
|
$ 999,687
|
$
12,235
|
4.86 %
|
$ 861,454
|
$ 9,464
|
4.36 %
|
Investment
securities:
|
|
|
|
|
|
|
Taxable
|
181,254
|
1,527
|
3.34 %
|
188,085
|
870
|
1.84 %
|
Tax-exempt*
|
44,526
|
331
|
2.95 %
|
33,825
|
247
|
2.89 %
|
Total investment
securities
|
225,780
|
1,858
|
3.27 %
|
221,910
|
1,117
|
2.00 %
|
Interest-bearing due
from banks
|
8,251
|
65
|
3.11 %
|
152,289
|
67
|
0.17 %
|
Federal funds
sold
|
262
|
3
|
3.68 %
|
9,667
|
3
|
0.09 %
|
Other
investments
|
2,024
|
29
|
5.96 %
|
1,033
|
13
|
5.42 %
|
Total earning
assets
|
1,236,004
|
$
14,190
|
4.56 %
|
1,246,353
|
$
10,664
|
3.39 %
|
Allowance for loan
losses
|
(10,247)
|
|
|
(9,732)
|
|
|
Other non-earning
assets
|
106,319
|
|
|
93,351
|
|
|
Total assets
|
$
1,332,076
|
|
|
$
1,329,972
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Time and savings
deposits:
|
|
|
|
|
|
|
Interest-bearing
transaction accounts
|
$
85,661
|
$
3
|
0.01 %
|
$
76,600
|
$
3
|
0.02 %
|
Money market deposit
accounts
|
382,513
|
263
|
0.27 %
|
388,849
|
230
|
0.23 %
|
Savings
accounts
|
120,398
|
9
|
0.03 %
|
118,920
|
12
|
0.04 %
|
Time
deposits
|
153,967
|
410
|
1.06 %
|
170,523
|
405
|
0.94 %
|
Total time and savings
deposits
|
742,539
|
685
|
0.37 %
|
754,892
|
650
|
0.34 %
|
Federal funds
purchased, repurchase
|
|
|
|
|
|
|
agreements and other
borrowings
|
11,396
|
66
|
2.32 %
|
5,380
|
2
|
0.13 %
|
Federal Home Loan Bank
advances
|
15,284
|
165
|
4.21 %
|
-
|
-
|
0.00 %
|
Long term
borrowings
|
29,517
|
295
|
3.91 %
|
29,386
|
292
|
3.95 %
|
Total interest-bearing
liabilities
|
798,736
|
1,211
|
0.60 %
|
789,658
|
944
|
0.47 %
|
Demand
deposits
|
429,740
|
|
|
410,209
|
|
|
Other
liabilities
|
7,917
|
|
|
8,885
|
|
|
Stockholders'
equity
|
95,683
|
|
|
121,220
|
|
|
Total liabilities and
stockholders' equity
|
$
1,332,076
|
|
|
$
1,329,972
|
|
|
Net interest
margin*
|
|
$
12,979
|
4.17 %
|
|
$ 9,720
|
3.09 %
|
|
|
|
|
|
|
|
*Computed on a fully
tax-equivalent basis (non-GAAP) using a 21% rate, adjusting
interest income
|
|
|
by $70 thousand
and $64 thousand for December 31, 2022 and 2021,
respectively.
|
|
|
|
**Annualized
|
|
|
|
|
|
|
|
|
|
|
|
Old Point Financial
Corporation and Subsidiaries
|
|
|
|
|
Average Balance
Sheets, Net Interest Income And Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended
December 31,
|
(unaudited)
|
2022
|
2021
|
|
|
Interest
|
|
|
Interest
|
|
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
(dollars in
thousands)
|
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
ASSETS
|
|
|
|
|
|
|
Loans*
|
$ 919,990
|
$
41,440
|
4.50 %
|
$ 841,748
|
$
37,960
|
4.51 %
|
Investment
securities:
|
|
|
|
|
|
|
Taxable
|
192,639
|
4,936
|
2.56 %
|
173,661
|
3,284
|
1.82 %
|
Tax-exempt*
|
42,792
|
1,258
|
2.94 %
|
32,158
|
953
|
2.96 %
|
Total investment
securities
|
235,431
|
6,194
|
2.63 %
|
205,819
|
4,237
|
2.06 %
|
Interest-bearing due
from banks
|
75,111
|
598
|
0.80 %
|
145,425
|
230
|
0.16 %
|
Federal funds
sold
|
2,694
|
21
|
0.77 %
|
2,932
|
3
|
0.09 %
|
Other
investments
|
1,554
|
87
|
5.63 %
|
1,104
|
70
|
6.35 %
|
Total earning
assets
|
1,234,780
|
$
48,340
|
3.91 %
|
1,197,028
|
$
42,500
|
3.55 %
|
Allowance for loan
losses
|
(9,958)
|
|
|
(9,621)
|
|
|
Other nonearning
assets
|
99,272
|
|
|
98,597
|
|
|
Total assets
|
$
1,324,094
|
|
|
$
1,286,004
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Time and savings
deposits:
|
|
|
|
|
|
|
Interest-bearing
transaction accounts
|
$
78,167
|
$
10
|
0.01 %
|
$
71,841
|
$
13
|
0.02 %
|
Money market deposit
accounts
|
385,067
|
697
|
0.18 %
|
372,193
|
879
|
0.24 %
|
Savings
accounts
|
125,310
|
39
|
0.03 %
|
114,285
|
46
|
0.04 %
|
Time
deposits
|
159,889
|
1,403
|
0.88 %
|
180,255
|
1,941
|
1.08 %
|
Total time and savings
deposits
|
748,433
|
2,149
|
0.29 %
|
738,574
|
2,879
|
0.39 %
|
Federal funds
purchased, repurchase
|
|
|
|
|
|
|
agreements and other
borrowings
|
6,170
|
69
|
1.12 %
|
14,178
|
35
|
0.25 %
|
Federal Home Loan Bank
advances
|
5,606
|
207
|
3.69 %
|
-
|
-
|
0.00 %
|
Long term
borrowings
|
29,469
|
1,180
|
4.01 %
|
13,784
|
544
|
3.95 %
|
Total interest-bearing
liabilities
|
789,678
|
3,605
|
0.46 %
|
766,536
|
3,458
|
0.45 %
|
Demand
deposits
|
422,850
|
|
|
391,673
|
|
|
Other
liabilities
|
6,221
|
|
|
7,473
|
|
|
Stockholders'
equity
|
105,345
|
|
|
120,322
|
|
|
Total liabilities and
stockholders' equity
|
$
1,324,094
|
|
|
$
1,286,004
|
|
|
Net interest
margin*
|
|
$
44,735
|
3.62 %
|
|
$
39,042
|
3.26 %
|
|
|
|
|
|
|
|
*Computed on a fully
tax-equivalent basis (non-GAAP) using a 21% rate, adjusting
interest income
|
|
|
by $297 thousand
and $248 thousand for December 31, 2022 and 2021,
respectively.
|
|
|
|
|
|
|
|
|
|
|
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)
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
|
Earnings per common
share, diluted
|
$
0.53
|
$
0.51
|
$
0.32
|
|
$
1.80
|
$
1.61
|
Return on average
assets (ROA)
|
0.79 %
|
0.77 %
|
0.50 %
|
|
0.69 %
|
0.66 %
|
Return on average
equity (ROE)
|
10.96 %
|
9.86 %
|
5.49 %
|
|
8.65 %
|
7.01 %
|
Net Interest Margin
(FTE) (non-GAAP)
|
4.17 %
|
3.78 %
|
3.09 %
|
|
3.62 %
|
3.26 %
|
Efficiency
ratio
|
76.63 %
|
77.43 %
|
83.90 %
|
|
78.79 %
|
80.38 %
|
Efficiency ratio (FTE)
(non-GAAP)
|
76.30 %
|
77.01 %
|
83.50 %
|
|
78.39 %
|
80.01 %
|
Book value per
share
|
19.75
|
18.71
|
23.06
|
|
|
|
Tangible Book Value per
share (non-GAAP)
|
19.37
|
18.34
|
22.69
|
|
|
|
Non-performing assets
(NPAs) / total assets
|
0.15 %
|
0.36 %
|
0.11 %
|
|
|
|
Annualized Net Charge
Offs / average total loans
|
0.02 %
|
0.16 %
|
0.05 %
|
|
|
|
Allowance for loan and
lease losses / total loans
|
1.02 %
|
1.04 %
|
1.17 %
|
|
|
|
|
|
|
|
|
|
|
Non-Performing Assets
(NPAs)
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
1,243
|
$
4,375
|
$
478
|
|
|
|
Loans > 90 days past
due, but still accruing interest
|
840
|
330
|
1,025
|
|
|
|
Other real estate
owned
|
-
|
-
|
-
|
|
|
|
Total non-performing
assets
|
$
2,083
|
$
4,705
|
$
1,503
|
|
|
|
|
|
|
|
|
|
|
Other Selected
Numbers
|
|
|
|
|
|
|
Loans, net
|
$ 1,016,559
|
$
945,132
|
$
833,661
|
|
|
|
Deposits
|
1,156,019
|
1,182,308
|
1,177,099
|
|
|
|
Stockholders'
equity
|
98,734
|
93,512
|
120,818
|
|
|
|
Total assets
|
1,355,335
|
1,317,006
|
1,338,155
|
|
|
|
Loans charged off
during the quarter, net of recoveries
|
40
|
365
|
103
|
|
|
|
Quarterly average
loans
|
999,687
|
938,110
|
861,454
|
|
|
|
Quarterly average
assets
|
1,332,076
|
1,313,646
|
1,329,972
|
|
|
|
Quarterly average
earning assets
|
1,236,004
|
1,223,985
|
1,246,353
|
|
|
|
Quarterly average
deposits
|
1,172,279
|
1,164,696
|
1,165,101
|
|
|
|
Quarterly average
equity
|
95,683
|
102,298
|
121,220
|
|
|
|
|
|
|
|
|
|
|
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,
2022
|
Sep. 30,
2022
|
Dec. 31,
2021
|
|
Dec. 31,
2022
|
Dec. 31,
2021
|
|
|
|
|
|
|
|
Fully Taxable
Equivalent Net Interest Income
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
$
12,909
|
$
11,571
|
$
9,656
|
|
$
44,438
|
$
38,794
|
FTE
adjustment
|
70
|
83
|
64
|
|
297
|
248
|
Net interest income
(FTE) (non-GAAP)
|
$
12,979
|
$
11,654
|
$
9,720
|
|
$
44,735
|
$
39,042
|
Noninterest income
(GAAP)
|
3,125
|
3,365
|
3,607
|
|
13,505
|
14,885
|
Total revenue (FTE)
(non-GAAP)
|
$
16,104
|
$
15,019
|
$
13,327
|
|
$
58,240
|
$
53,927
|
Noninterest expense
(GAAP)
|
12,287
|
11,565
|
11,128
|
|
45,655
|
43,149
|
|
|
|
|
|
|
|
Average earning
assets
|
$ 1,236,004
|
$ 1,223,985
|
$ 1,246,353
|
|
$ 1,234,780
|
$ 1,197,028
|
Net interest
margin
|
4.14 %
|
3.75 %
|
3.07 %
|
|
3.60 %
|
3.24 %
|
Net interest margin
(FTE) (non-GAAP)
|
4.17 %
|
3.78 %
|
3.09 %
|
|
3.62 %
|
3.26 %
|
|
|
|
|
|
|
|
Efficiency
ratio
|
76.63 %
|
77.43 %
|
83.90 %
|
|
78.79 %
|
80.38 %
|
Efficiency ratio (FTE)
(non-GAAP)
|
76.30 %
|
77.01 %
|
83.50 %
|
|
78.39 %
|
80.01 %
|
|
|
|
|
|
|
|
Tangible Book Value
Per Share
|
|
|
|
|
|
|
Total Stockholders
Equity (GAAP)
|
$
98,734
|
$
93,512
|
$
120,818
|
|
|
|
Less
goodwill
|
1,650
|
1,650
|
1,650
|
|
|
|
Less core deposit
intangible
|
231
|
242
|
275
|
|
|
|
Tangible Stockholders
Equity (non-GAAP)
|
$
96,853
|
$
91,620
|
$
118,893
|
|
|
|
|
|
|
|
|
|
|
Shares issued and
outstanding
|
4,999,083
|
4,996,728
|
5,239,707
|
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
$
19.75
|
$
18.71
|
$
23.06
|
|
|
|
Tangible book value per
share (non-GAAP)
|
$
19.37
|
$
18.34
|
$
22.69
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
2022
|
Sep. 30,
2022
|
Dec. 31,
2021
|
|
|
|
ALLL as a Percentage
of Loans Held for Investment
|
|
|
|
|
|
|
Loans held for
investment (net of deferred fees and costs) (GAAP)
|
$ 1,027,085
|
$
955,065
|
$
843,526
|
|
|
|
Less PPP loans
outstanding
|
530
|
624
|
19,008
|
|
|
|
Loans held for
investment, (net of deferred fees and costs), excluding
PPP (non-GAAP)
|
$ 1,026,555
|
$
954,441
|
$
824,518
|
|
|
|
|
|
|
|
|
|
|
ALLL
|
$
10,526
|
$
9,933
|
$
9,865
|
|
|
|
|
|
|
|
|
|
|
ALLL as a Percentage of
Loans Held for Investment
|
1.02 %
|
1.04 %
|
1.17 %
|
|
|
|
ALLL as a Percentage of
Loans Held for Investment, net of PPP originations
|
1.03 %
|
1.04 %
|
1.20 %
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Old Point Financial Corporation