HAMPTON,
Va., April 27, 2023 /PRNewswire/ -- Old Point
Financial Corporation (the Company or Old Point) (NASDAQ "OPOF")
reported net income of $3.1 million
and earnings per diluted common share of $0.62 for the first quarter of 2023 compared to
net income of $2.0 million and
earnings per diluted common share of $0.39 for the first quarter of 2022.
Robert Shuford, Jr., Chairman,
President and CEO of the Company and Old Point National Bank (the
Bank) said, "Old Point's first quarter results reflect our
consistent and traditional banking franchise and the strength of
our balance sheet. During a period characterized by heightened
market volatility, we maintained strong asset quality, increased
our capital position, and grew loans and deposits. We continued to
generate strong earnings in the first quarter of 2023, although NIM
began to tighten due to the current interest rate environment and
our funding needs. Deposit costs, while rising, continue to
show the benefits of our strong deposit base which is very seasoned
and diversified. During our 100th anniversary year, Old
Point remains focused on serving the needs of our community and
customers, maintaining asset quality, capital levels, and liquidity
sources, while carefully identifying opportunities that align with
our forward-looking strategies."
Highlights of the first quarter are as follows:
- Net loans held for investment grew $53.2
million, or 5.2%, from December 31,
2022. Loans held for investment, (net of deferred fees and
costs), excluding PPP (non-GAAP), grew $54.2
million, or 5.3%, from December 31,
2022 and $233.1 million, or
27.5%, from March 31, 2022.
- Total deposits increased $43.6
million, or 3.8%, from December 31,
2022.
- Return on average equity (ROE) increased to 12.5% for the first
quarter of 2023, compared to 11.0% for the fourth quarter of 2022,
and 7.0% for the prior year quarter.
- Net income improved $440
thousand, or 16.7%, to $3.1
million for the first quarter of 2023 from $2.6 million for the fourth quarter of 2022, and
$1.1 million, or 51.8%, from
$2.0 million in the 2022 comparative
quarter.
- Net interest margin (NIM) was 4.02% in the first quarter of
2023, compared to 4.14% in the fourth quarter of 2022 and 3.14% in
the first quarter of 2022. NIM on a fully tax-equivalent basis
(FTE) (non-GAAP) was 4.04% in the first quarter of 2022, 4.17% in
the linked quarter and 3.16% in the first quarter of 2022.
- Net interest income for the first quarter of 2023, decreased
$96 thousand, or 0.7%, compared to
the prior quarter and increased $3.2
million, or 33.0%, compared to the first quarter of
2022.
- Provision for credit losses of $376
thousand was recognized for the first quarter of 2023,
compared to $633 thousand for the
fourth quarter of 2022 and $101
thousand for the first quarter of 2022.
- Noninterest expense decreased $119
thousand, or 1.0%, to $12.2
million for the first quarter of 2023, compared to
$12.3 million for the fourth quarter
of 2022 but increased $1.5 million,
or 13.6%, from the first quarter of 2022.
- On January 1, 2023, the Company
adopted the Current Expected Credit Loss (CECL) methodology for
estimating credit losses, which resulted in a decrease to opening
retained earnings of $991
thousand.
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 March 31, 2023 increased by $60.8 million from December 31, 2022. Net loans held for investment
increased $53.2 million, or 5.2% from
December 31, 2022 to $1.1 billion at March 31,
2023, driven by diversified loan growth in the following
segments: construction, land development, and other land loans of
$8.7 million, residential real estate
of $17.1 million, and indirect
automobile of $25.0 million.
Securities available-for-sale, at fair value, decreased
$1.6 million from December 31, 2022 to $224.0 million at March
31, 2023.
Total deposits of $1.2 billion as
of March 31, 2023 increased
$43.6 million, or 3.8%, from
December 31, 2022.
Noninterest-bearing deposits decreased $13.4
million, or 3.2%, savings deposits increased $45.0 million, or 7.7%, and time deposits
increased $12.1 million, or 7.9%,
driven by depositors seeking increased yields. Overnight repurchase
agreements, federal funds purchased, and short-term Federal Home
Loan Bank advances increased $14.6
million to $77.0 million at
March 31, 2023 from $62.5 million at December
31, 2022, as the Company used additional borrowings to help
fund loan growth during the first quarter.
The Company's total stockholders' equity at March 31, 2023 increased $3.9 million, or 3.9%, from December 31, 2022 to $102.6 million. The increase was primarily
related to improvement in unrealized losses in the market value of
securities available-for-sale, which are recorded as a component of
accumulated other comprehensive loss, and earnings, partially
offset by the adoption of CECL. The unrealized loss in market value
of securities available-for-sale was a result of rising market
interest rates rather than credit quality issues. The Company
does not expect these unrealized losses to affect the earnings or
regulatory capital of the Company or its subsidiaries. The Bank
remains well capitalized with a Tier 1 Capital ratio of 11.12% at
March 31, 2023 as compared to 10.82%
at December 31, 2022. The Bank's
leverage ratio was 9.74% at March 31,
2023 as compared to 9.43% at December
31, 2022.
Non-performing assets (NPAs) totaled $1.7
million as of March 31, 2023
compared to $4.8 million as of
March 31, 2022 and $2.1 million at December
31, 2022. NPAs as a percentage of total assets was 0.12% at
March 31, 2023, compared to 0.36% at
March 31, 2022 and 0.15% at
December 31, 2022. Non-accrual loans
were $1.0 million at March 31, 2023, a decrease from $4.2 million at March 31,
2022 and $1.2 million at
December 31, 2022. The decrease in
non-accrual loans from the prior year comparative quarter was
related to resolution of one large commercial relationship. Loans
past due 90 days or more and still accruing interest decreased
$118 thousand to $722 thousand at March 31,
2023 from $840 thousand at
December 31, 2022 but increased
$98 thousand from $624 thousand at March 31,
2022.
The Company recognized a provision for credit losses of
$376 thousand during the first
quarter of 2023 compared to $633
thousand during the fourth quarter of 2022 and $101 thousand during the first quarter of 2022.
The provision for credit losses for the first quarter of 2023
reflected a provision of $563
thousand for loans and a recovery provision for unfunded
commitments of $187 thousand. The
allowance for credit losses (ACL) was $11.8
million and included an allowance for credit losses on loans
of $11.6 million and a reserve for
unfunded commitments of $214
thousand. The increase in the allowance for credit losses on
loans during the first quarter of 2023 was due primarily to growth
in the portfolio and the adoption of CECL, which resulted in an
implementation adjustment on January 1,
2023 of $641 thousand. The
allowance for credit losses on loans as a percentage of loans held
for investment was 1.07% at March 31,
2023 compared to 1.11% at March 31,
2022 and 1.02% at December 31,
2022. Quarterly annualized net charge-offs as a percentage
of average loans outstanding was 0.07% for the first quarter of
2023, compared to 0.02% for the fourth quarter of 2022 and 0.21%
for the first quarter of 2022. As of March
31, 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 first
quarter of 2023 was $12.8 million, a
decrease of $96 thousand, or 0.7%,
from the prior quarter and increase $3.2
million, or 33.0%, from the first quarter of 2022. The
decrease from the linked quarter is due primarily to higher average
interest-bearing liabilities at higher average rates partially
offset by higher average earning asset balances at higher average
yields. The increase from the prior-year comparative quarter was
due primarily to: (i) deployment of lower yielding cash to fund
growth in higher yielding loans and investments; (ii) higher
average yields on earning asset balances due to the effect of
rising market interest rates; partially offset by (iii) higher
average interest-bearing liabilities at higher average rates.
The Net Interest Margin (NIM) for the first quarter of 2023 was
4.02%, a decrease from 4.14% for the linked quarter and an increase
from 3.14% for the prior year quarter. On a fully tax-equivalent
basis (FTE) (non-GAAP), NIM was 4.04%, compared to 4.17% for the
fourth quarter of 2022 and 3.16% for the first quarter of
2022. Average earning asset balances increased $45.2 million period-over-period with yields on
average earning assets increasing 135 basis points due to
deployment of liquidity into higher earning assets and the effects
of the rising interest rate environment. Average
interest-bearing liabilities increased $61.2
million with costs increasing 68 basis points. The
higher interest cost on liabilities was due to higher interest
rates on money market and time deposits as well as additional
borrowing costs associated with federal funds purchased and short
term FHLB advances during the period to help fund loan growth.
Average loans increased $192.0
million, or 22.2%, for the first quarter compared to the
same period of 2022. Average yields on loans and investment
securities were 69 basis points and 154 basis points higher in the
first quarter of 2023 due primarily to the effects of rising
interest rates. During 2022 and continuing into 2023, market
interest rates increased, and while the Company expects asset
yields to continue to rise, the cost of funds is expected to rise
at a faster pace. The extent to which rising interest rates will
ultimately affect the Company's NIM is uncertain. For more
information about these FTE financial measures, please see
"Non-GAAP Financial Measures" and "Reconciliation of Certain
Non-GAAP Financial Measures," below.
Noninterest Income
Total noninterest income was
$3.4 million for the first quarter of
2023 compared to $3.1 million for the
fourth quarter of 2022 and $3.5
million for the first quarter of 2022. Increases during the
first quarter of 2023 in fiduciary and asset management fees,
mortgage banking income, and other service charges, commissions and
fees were partially offset by decreases in service charges on
deposit accounts and other operating income compared to the linked
quarter. Although fiduciary and asset management fees, service
charges on deposit accounts, other service charges, commissions and
fees, and bank-owned life insurance increased compared to the prior
year quarter, these increases were offset by lower mortgage banking
income and other operating expense. The decrease in mortgage
banking income for the first quarter of 2023 and the fourth quarter
of 2022 compared to the first quarter of 2022 was due to declines
in volume of mortgage originations attributable to changes in
mortgage market conditions. Gains on sales of fixed assets of
$1.7 million and losses on sales of
available-for-sale securities of $1.9
million in a reinvestment strategy were recognized during
the fourth quarter of 2022 which impacted the quarterly
comparatives and were not repeated.
Noninterest Expense
Noninterest expense totaled
$12.2 million for the first quarter
of 2023 compared to $12.3 million for
the fourth quarter of 2022 and $10.7
million for the first quarter of 2022. The decrease from the
linked quarter of $119 thousand was
related increases in salary and benefits and employee professional
development costs offset by decreases in all other noninterest
expense areas. The increase over the prior year quarter was
primarily driven by increased salary and benefit expense, data
processing, ATM and other losses, 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 began reducing certain existing cost structures during the
first quarter 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.
Capital Management and Dividends
For the first quarter
of 2023, the Company declared dividends of $0.14 per share, representing a 7.7% increase
from the prior quarter dividend of $0.13 per share. The dividend represents a payout
ratio of 22.7% of earnings per share for the first quarter of 2023.
The Board of Directors of the Company continually reviews the
amount of cash dividends per share and the resulting dividend
payout ratio in light of changes in economic conditions, current
and future capital requirements, and expected future earnings.
Total equity increased $3.9
million at March 31, 2023,
compared to December 31, 2022, due
primarily to lower unrealized losses in the market value of
securities available-for-sale, which are recognized as a component
of accumulated other comprehensive loss, and net income, partially
offset by the adoption of CECL. The Company's securities
available-for-sale are fixed income debt securities, and their
unrealized loss position is a result of increases in market
interest rates rather than credit quality issues. The Company
expects to recover its investments in debt securities through
scheduled payments of principal and interest and unrealized losses
are not expected to affect the earnings or regulatory capital of
the Company or its subsidiaries.
At March 31, 2023, the book value
per share of the Company's common stock was $20.52, and tangible book value per share
(non-GAAP) was $20.14. 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 ended March 31,
2023, the Company has provided supplemental financial
measures on a tax-equivalent, tangible or adjusted basis. These
non-GAAP financial measures are a supplement to GAAP, which is used
to prepare the Company's financial statements, and should not be
considered in isolation or as a substitute for comparable measures
calculated in accordance with GAAP. In addition, the Company's
non-GAAP financial measures may not be comparable to non-GAAP
financial measures of other companies. The Company uses the
non-GAAP financial measures discussed herein in its analysis of the
Company's performance. The Company's management believes that these
non-GAAP financial measures provide additional understanding of
ongoing operations and enhance comparability of results of
operations with prior periods presented without the impact of items
or events that may obscure trends in the Company's underlying
performance. A reconciliation of the non-GAAP financial
measures used by the Company to evaluate and measure the Company's
performance to the most directly comparable GAAP financial measures
is presented below.
Safe Harbor Statement Regarding Forward-Looking Statements
- Statements in this press release, including without
limitation, statements made in Mr. Shuford's quotation, which use
language such as "believes," "expects," "plans," "may," "will,"
"should," "projects," "contemplates," "anticipates," "forecasts,"
"intends" and similar expressions, may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
the beliefs of Old Point's management, as well as estimates and
assumptions made by, and information available to, management, as
of the time such statements are made. These statements are
inherently uncertain, and there can be no assurance that the
underlying beliefs, estimates, or assumptions will prove to be
accurate. Actual results, performance, achievements, or trends
could differ materially from historical results or those
anticipated by such statements. The actual results or developments
anticipated may not be realized or, even if substantially realized,
they may not have the expected consequences to or effects on the
Company or its businesses or operations. Forward-looking statements
in this release may include, without limitation: statements
regarding strategic business initiatives, including vendor review
initiatives and new vendor relationships, and the future financial
impact of those initiatives; future financial performance; future
financial and economic conditions, industry conditions, and loan
demand; impacts of economic uncertainties; performance of the
investment and loan portfolios; revenue generation, efficiency
initiatives and expense controls; deposit growth; levels and
sources of liquidity; future levels of the allowance for loan
losses, charge-offs or net recoveries; levels of or changes in
interest rates; and statements that include other projections,
predictions, expectations, or beliefs about future events or
results, or otherwise are not statements of historical fact.
Factors that could have a material adverse effect on the
operations and future prospects of Old Point include, but are not
limited to, changes in or the effects of: interest rates and yields
and their impacts on macroeconomic conditions, customer and client
behavior, Old Point's funding costs and Old Point's loan and
securities portfolios; inflation and its impacts on economic growth
and customer and client behavior; general economic and business
conditions in the United States
generally and particularly in the Company's service area, including
higher inflation, slowdowns in economic growth, an increase in
unemployment levels, 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; conditions in the banking industry and the
financial condition and capital adequacy of other participants in
the banking industry, and market reactions thereto; the quality or
the composition of the loan or securities portfolios and changes
therein; effectiveness of expense control initiatives; an
insufficient ACL; potential claims, damages and fines related to
litigation or government actions; demand for loan products; future
levels of government defense spending, particularly in the
Company's service area; uncertainty over future federal spending or
budget priorities, particularly in connection with the Department
of Defense, on the Company's service area; the impact of changes in
the political landscape and related policy changes, including
monetary, regulatory, and trade policies; the potential adverse
effects of unusual and infrequently occurring events, such as
weather-related disasters, terrorist acts, geopolitical conflicts
(such as the ongoing conflict between Russia and Ukraine) or public health events (such as the
COVID-19 pandemic), and governmental and societal responses to the
foregoing, on, among other things, the Company's operations,
liquidity, and credit quality; changes in the volume and mix of
interest-earning assets and interest-bearing liabilities; the
effects of management's investment strategy and strategy to manage
the net interest margin; the U.S. government's guarantee of
repayment of small business loans purchased by Old Point; the level
of net charge-offs on loans; deposit flows; the Company's ability
to compete in the market for financial services and increased
competition from fintech companies; demand for financial services
in Old Point's service area; technological risks and developments;
implementation of new technologies; the Company's ability to
develop and maintain secure and reliable electronic systems; any
interruption or breach of security in the Company's information
systems or those of the Company's third party vendors or other
service providers; cyber threats, attacks and events; reliance on
third parties for key services; the use of inaccurate assumptions
in management's modeling systems; the real estate market; changes
in accounting principles, standards, policies guidelines, and
interpretations, and the related impact on the Company's financial
statements; changes in management; and other factors detailed in
Old Point's publicly filed documents, including its Annual Report
on Form 10-K for the year ended December 31, 2022, which
have been filed with the U.S. Securities and Exchange Commission
("SEC") and are available on the SEC's website at www.sec.gov.
These risks and uncertainties should be considered in evaluating
the forward-looking statements contained herein, and readers are
cautioned not to place undue reliance on such statements, which
speak only as of date they are made.
The Company does not intend or assume any obligation to update,
revise or clarify any forward-looking statements that may be made
from time to time or on behalf of the Company, whether as a result
of new information, future events or otherwise.
Information about Old Point Financial Corporation
Old
Point Financial Corporation (Nasdaq: OPOF) is the parent company of
Old Point National Bank and Old Point Wealth Management, which
serve the Hampton Roads and
Richmond regions of Virginia as well as operate a mortgage loan
production office in Charlotte, North
Carolina. Old Point National Bank is a locally owned and
managed community bank which offers a wide range of financial
services from checking, insurance, and mortgage products to
comprehensive commercial lending and banking products and services.
Old Point Wealth Management is the largest wealth management
services provider headquartered in Hampton Roads, Virginia, offering local asset
management by experienced professionals. Additional information
about the company is available at oldpoint.com.
For more information, contact Laura
Wright, Vice President/Marketing Director, at
lwright@oldpoint.com or (757) 728-1743.
Old Point Financial
Corporation and Subsidiaries
|
Consolidated Balance
Sheets
|
March 31,
|
December 31,
|
(dollars in thousands,
except share data)
|
2023
|
2022
|
|
(unaudited)
|
|
Assets
|
|
|
|
|
|
Cash and due from
banks
|
$
16,253
|
$
15,670
|
Interest-bearing due
from banks
|
12,594
|
3,580
|
Federal funds
sold
|
222
|
-
|
Cash and cash
equivalents
|
29,069
|
19,250
|
Securities
available-for-sale, at fair value
|
223,913
|
225,518
|
Restricted securities,
at cost
|
4,479
|
3,434
|
Loans held for
sale
|
325
|
421
|
Loans, net
|
1,069,714
|
1,016,559
|
Premises and equipment,
net
|
30,604
|
31,008
|
Premises and equipment,
held for sale
|
987
|
987
|
Bank-owned life
insurance
|
34,304
|
34,049
|
Goodwill
|
1,650
|
1,650
|
Core deposit
intangible, net
|
220
|
231
|
Other assets
|
20,886
|
22,228
|
Total assets
|
$
1,416,151
|
$ 1,355,335
|
|
|
|
Liabilities &
Stockholders' Equity
|
|
|
|
|
|
Deposits:
|
|
|
Noninterest-bearing
deposits
|
$ 405,160
|
$
418,582
|
Savings
deposits
|
629,483
|
584,527
|
Time
deposits
|
164,972
|
152,910
|
Total
deposits
|
1,199,615
|
1,156,019
|
Overnight repurchase
agreements
|
4,517
|
4,987
|
Federal funds
purchased
|
-
|
11,378
|
Federal Home Loan Bank
advances
|
72,500
|
46,100
|
Long term
borrowings
|
29,570
|
29,538
|
Accrued expenses and
other liabilities
|
7,351
|
8,579
|
Total
liabilities
|
1,313,553
|
1,256,601
|
|
|
|
Stockholders'
equity:
|
|
|
Common stock, $5 par
value, 10,000,000 shares authorized; 5,000,311 and 4,999,083 shares
outstanding (includes 46,989 of nonvested restricted stock,
respectively)
|
24,767
|
24,761
|
Additional paid-in
capital
|
16,727
|
16,593
|
Retained
earnings
|
79,539
|
78,147
|
Accumulated other
comprehensive (loss) income, net
|
(18,435)
|
(20,767)
|
Total stockholders'
equity
|
102,598
|
98,734
|
Total liabilities and
stockholders' equity
|
$
1,416,151
|
$ 1,355,335
|
Old Point Financial
Corporation and Subsidiaries
|
|
|
|
Consolidated
Statements of Income (unaudited)
|
Three Months
Ended
|
(dollars in thousands,
except per share data)
|
Mar. 31,
2023
|
Dec. 31,
2022
|
Mar. 31,
2022
|
|
|
|
|
Interest and
Dividend Income:
|
|
|
|
Loans, including
fees
|
$
13,041
|
$
12,234
|
$
9,184
|
Due from
banks
|
64
|
65
|
73
|
Federal funds
sold
|
6
|
3
|
1
|
Securities:
|
|
|
|
Taxable
|
1,764
|
1,527
|
989
|
Tax-exempt
|
212
|
262
|
209
|
Dividends and interest
on all other securities
|
66
|
29
|
14
|
Total interest and
dividend income
|
15,153
|
14,120
|
10,470
|
|
|
|
|
Interest
Expense:
|
|
|
|
Checking and savings
deposits
|
854
|
275
|
176
|
Time
deposits
|
537
|
410
|
361
|
Federal funds
purchased, securities sold under
|
|
|
|
agreements to
repurchase and other borrowings
|
37
|
66
|
1
|
Federal Home Loan Bank
advances
|
617
|
165
|
-
|
Long term
borrowings
|
295
|
295
|
295
|
Total interest
expense
|
2,340
|
1,211
|
833
|
Net interest
income
|
12,813
|
12,909
|
9,637
|
Provision for credit
losses
|
376
|
633
|
101
|
Net interest income
after provision for credit losses
|
12,437
|
12,276
|
9,536
|
|
|
|
|
Noninterest
Income:
|
|
|
|
Fiduciary and asset
management fees
|
1,116
|
1,011
|
1,072
|
Service charges on
deposit accounts
|
753
|
791
|
722
|
Other service charges,
commissions and fees
|
1,109
|
1,044
|
1,053
|
Bank-owned life
insurance income
|
254
|
256
|
231
|
Mortgage banking
income
|
95
|
78
|
220
|
(Loss) on sale of
available-for-sale securities, net
|
-
|
(1,870)
|
-
|
Gain on sale of fixed
assets
|
-
|
1,690
|
-
|
Other operating
income
|
94
|
125
|
217
|
Total noninterest
income
|
3,421
|
3,125
|
3,515
|
|
|
|
|
Noninterest
Expense:
|
|
|
|
Salaries and employee
benefits
|
7,363
|
7,201
|
6,422
|
Occupancy and
equipment
|
1,195
|
1,232
|
1,161
|
Data
processing
|
1,179
|
1,183
|
1,090
|
Customer
development
|
113
|
175
|
93
|
Professional
services
|
673
|
758
|
630
|
Employee professional
development
|
234
|
222
|
264
|
Other taxes
|
213
|
212
|
213
|
ATM and other
losses
|
255
|
309
|
14
|
Other operating
expenses
|
943
|
995
|
826
|
Total noninterest
expense
|
12,168
|
12,287
|
10,713
|
Income before income
taxes
|
3,690
|
3,114
|
2,338
|
Income tax
expense
|
607
|
471
|
307
|
Net income
|
$
3,083
|
$
2,643
|
$
2,031
|
|
|
|
|
Basic Earnings per
Common Share:
|
|
|
|
Weighted average shares
outstanding
|
4,999,887
|
4,998,173
|
5,186,354
|
Net income per share of
common stock
|
$
0.62
|
$
0.53
|
$
0.39
|
|
|
|
|
Diluted Earnings per
Common Share:
|
|
|
|
Weighted average shares
outstanding
|
5,000,020
|
4,998,173
|
5,186,431
|
Net income per share of
common stock
|
$
0.62
|
$
0.53
|
$
0.39
|
|
|
|
|
Cash Dividends
Declared per Share:
|
$
0.14
|
$
0.13
|
$
0.13
|
Old Point Financial
Corporation and Subsidiaries
|
|
|
|
|
Average Balance
Sheets, Net Interest Income And Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarters
ended March 31,
|
(unaudited)
|
2023
|
2022
|
|
|
Interest
|
|
|
Interest
|
|
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
(dollars in
thousands)
|
Balance
|
Expense
|
Rate**
|
Balance
|
Expense
|
Rate**
|
ASSETS
|
|
|
|
|
|
|
Loans*
|
$ 1,055,878
|
$ 13,042
|
5.01 %
|
$
863,897
|
$
9,196
|
4.32 %
|
Investment
securities:
|
|
|
|
|
|
|
Taxable
|
186,292
|
1,764
|
3.84 %
|
201,940
|
989
|
1.99 %
|
Tax-exempt*
|
38,206
|
268
|
2.85 %
|
37,007
|
265
|
2.90 %
|
Total investment
securities
|
224,498
|
2,032
|
3.67 %
|
238,947
|
1,254
|
2.13 %
|
Interest-bearing due
from banks
|
6,596
|
64
|
3.94 %
|
137,601
|
73
|
0.22 %
|
Federal funds
sold
|
577
|
6
|
4.23 %
|
4,441
|
1
|
0.09 %
|
Other
investments
|
3,632
|
66
|
7.32 %
|
1,142
|
14
|
4.90 %
|
Total earning
assets
|
1,291,181
|
$ 15,210
|
4.78 %
|
1,246,028
|
$ 10,538
|
3.43 %
|
Allowance for credit
losses
|
(11,339)
|
|
|
(9,989)
|
|
|
Other non-earning
assets
|
104,511
|
|
|
93,796
|
|
|
Total assets
|
$ 1,384,353
|
|
|
$ 1,329,835
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Time and savings
deposits:
|
|
|
|
|
|
|
Interest-bearing
transaction accounts
|
$ 70,254
|
$
3
|
0.02 %
|
$ 75,129
|
$
3
|
0.02 %
|
Money market deposit
accounts
|
428,941
|
842
|
0.80 %
|
389,368
|
163
|
0.17 %
|
Savings
accounts
|
115,880
|
9
|
0.03 %
|
126,258
|
10
|
0.03 %
|
Time
deposits
|
148,563
|
537
|
1.47 %
|
167,859
|
361
|
0.87 %
|
Total time and savings
deposits
|
763,638
|
1,391
|
0.74 %
|
758,614
|
537
|
0.29 %
|
Federal funds
purchased, repurchase
|
|
|
|
|
|
|
agreements and other
borrowings
|
7,959
|
37
|
1.91 %
|
4,589
|
1
|
0.10 %
|
Federal Home Loan Bank
advances
|
52,626
|
617
|
4.69 %
|
-
|
-
|
0.00 %
|
Long term
borrowings
|
29,551
|
295
|
4.00 %
|
29,419
|
295
|
4.01 %
|
Total interest-bearing
liabilities
|
853,774
|
2,340
|
1.11 %
|
792,622
|
833
|
0.43 %
|
Demand
deposits
|
421,779
|
|
|
414,080
|
|
|
Other
liabilities
|
8,347
|
|
|
5,368
|
|
|
Stockholders'
equity
|
100,453
|
|
|
117,765
|
|
|
Total liabilities and
stockholders' equity
|
$ 1,384,353
|
|
|
$ 1,329,835
|
|
|
Net interest
margin*
|
|
$ 12,870
|
4.04 %
|
|
$
9,705
|
3.16 %
|
|
*Computed on a fully
tax-equivalent basis (non-GAAP) using a 21% rate, adjusting
interest income by $57 thousand and $68 thousand for March 31, 2023
and 2022, respectively.
|
**Annualized
|
Old Point Financial
Corporation and Subsidiaries
|
As of or for the
quarters ended,
|
Selected Ratios
(unaudited)
|
March 31,
|
December 31,
|
March 31,
|
(dollars in thousands,
except per share data)
|
2023
|
2022
|
2022
|
|
|
|
|
Earnings per common
share, diluted
|
$
0.62
|
$
0.53
|
$
0.39
|
Return on average
assets (ROA)
|
0.90 %
|
0.79 %
|
0.62 %
|
Return on average
equity (ROE)
|
12.45 %
|
10.96 %
|
6.99 %
|
Net Interest Margin
(FTE) (non-GAAP)
|
4.04 %
|
4.17 %
|
3.16 %
|
Efficiency
ratio
|
74.95 %
|
76.63 %
|
81.46 %
|
Efficiency ratio (FTE)
(non-GAAP)
|
74.69 %
|
76.30 %
|
81.04 %
|
Book value per
share
|
20.52
|
19.75
|
21.12
|
Tangible Book Value per
share (non-GAAP)
|
20.14
|
19.37
|
20.75
|
Non-performing assets
(NPAs) / total assets
|
0.12 %
|
0.15 %
|
0.36 %
|
Annualized Net Charge
Offs / average total loans
|
0.07 %
|
0.02 %
|
0.21 %
|
Allowance for credit
losses / total loans
|
1.07 %
|
1.02 %
|
1.11 %
|
|
|
|
|
Non-Performing Assets
(NPAs)
|
|
|
|
Nonaccrual
loans
|
$
980
|
$
1,243
|
$
4,187
|
Loans > 90 days past
due, but still accruing interest
|
722
|
840
|
624
|
Other real estate
owned
|
-
|
-
|
-
|
Total non-performing
assets
|
$
1,702
|
$
2,083
|
$
4,811
|
|
|
|
|
Other Selected
Numbers
|
|
|
|
Loans, net
|
$
1,069,714
|
$
1,016,559
|
$
845,714
|
Deposits
|
1,199,615
|
1,156,019
|
1,178,889
|
Stockholders'
equity
|
102,598
|
98,734
|
108,099
|
Total assets
|
1,416,151
|
1,355,335
|
1,325,385
|
Loans charged off
during the quarter, net of recoveries
|
179
|
40
|
446
|
Quarterly average
loans
|
1,055,878
|
999,687
|
863,897
|
Quarterly average
assets
|
1,384,353
|
1,332,076
|
1,329,835
|
Quarterly average
earning assets
|
1,291,181
|
1,236,004
|
1,246,028
|
Quarterly average
deposits
|
1,185,417
|
1,172,279
|
1,172,694
|
Quarterly average
equity
|
100,453
|
95,683
|
117,765
|
Old Point Financial
Corporation and Subsidiaries
|
|
Reconciliation of
Certain Non-GAAP Financial Measures (unaudited)
|
|
(dollars in thousands,
except per share data)
|
Three Months
Ended
|
|
Mar. 31,
2023
|
Dec. 31,
2022
|
Mar. 31,
2022
|
|
|
|
|
Fully Taxable
Equivalent Net Interest Income
|
|
|
|
Net interest income
(GAAP)
|
$
12,813
|
$
12,909
|
$
9,637
|
FTE
adjustment
|
57
|
70
|
68
|
Net interest income
(FTE) (non-GAAP)
|
$
12,870
|
$
12,979
|
$
9,705
|
Noninterest income
(GAAP)
|
3,421
|
3,125
|
3,515
|
Total revenue (FTE)
(non-GAAP)
|
$
16,291
|
$
16,104
|
$
13,220
|
Noninterest expense
(GAAP)
|
12,168
|
12,287
|
10,713
|
|
|
|
|
Average earning
assets
|
$
1,291,181
|
$
1,236,004
|
$
1,246,028
|
Net interest
margin
|
4.02 %
|
4.14 %
|
3.14 %
|
Net interest margin
(FTE) (non-GAAP)
|
4.04 %
|
4.17 %
|
3.16 %
|
|
|
|
|
Efficiency
ratio
|
74.95 %
|
76.63 %
|
81.46 %
|
Efficiency ratio (FTE)
(non-GAAP)
|
74.69 %
|
76.30 %
|
81.04 %
|
|
|
|
|
Tangible Book Value
Per Share
|
|
|
|
Total Stockholders
Equity (GAAP)
|
$
102,598
|
$
98,734
|
$
108,099
|
Less
goodwill
|
1,650
|
1,650
|
1,650
|
Less core deposit
intangible
|
220
|
231
|
264
|
Tangible Stockholders
Equity (non-GAAP)
|
$
100,728
|
$
96,853
|
$
106,185
|
|
|
|
|
Shares issued and
outstanding
|
5,000,331
|
4,999,083
|
5,118,193
|
|
|
|
|
Book value per
share
|
$
20.52
|
$
19.75
|
$
21.12
|
Tangible book value per
share (non-GAAP)
|
$
20.14
|
$
19.37
|
$
20.75
|
|
|
|
|
|
Mar. 31,
2023
|
Dec. 31,
2022
|
Mar. 31,
2022
|
ALLL as a Percentage
of Loans Held for Investment
|
|
|
|
Loans held for
investment (net of deferred fees and costs) (GAAP)
|
$
1,081,265
|
$
1,027,085
|
$
855,234
|
Less PPP loans
outstanding
|
471
|
530
|
7,509
|
Loans held for
investment, (net of deferred fees and costs), excluding PPP
(non-GAAP)
|
$
1,080,794
|
$
1,026,555
|
$
847,725
|
|
|
|
|
Allowance for credit
losses on loans
|
$
11,551
|
$
10,526
|
$
9,520
|
|
|
|
|
Allowance for credit
losses on loans as a Percentage of Loans Held for
Investment
|
1.07 %
|
1.02 %
|
1.11 %
|
Allowance for credit
losses on loans as a Percentage of Loans Held for Investment, net
of PPP originations
|
1.07 %
|
1.03 %
|
1.12 %
|
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SOURCE Old Point Financial Corporation