Old Point Releases First Quarter 2024 Results
Our loan portfolio continues to perform exceptionally well. Overall, while others have experienced losses in their real estate portfolios, ours has had a net recovery in each of the past three calendar years. In addition, our indirect auto loan portfolio is buoyed by our Prime borrower base, with an average credit score of over 740.
Notwithstanding our asset quality, like all financial institutions, we are impacted by continued inflationary pressures and economic conditions increasing our costs to do business. Accordingly, during the first quarter, we continued a series of initiatives that began in late 2023, to reduce noninterest expense. Once fully implemented, these initiatives are expected to reduce noninterest expense by approximately
Key highlights of the first quarter are as follows:
- The noninterest expense reduction initiatives are expected to reduce noninterest expense by approximately
$5.0 million on an annualized pre-tax basis (excluding one-time costs). Part of these initiatives is the difficult, but important, decision to reduce our employee headcount by approximately 12%, saving approximately$3.7 million annually (excluding one-time costs) and having a meaningful impact on the Company's earnings and efficiency ratios going forward. During the first quarter of 2024, the Company incurred one-time costs of$345 thousand related to these initiatives. These initiatives are expected to have a minimal positive impact on the Company's earnings in the second quarter of 2024 due to additional one-time costs, but earnings should begin to reflect the impact of these initiatives in the third quarter of 2024 with substantially all benefits realized by mid-2025. - Total assets were
$1.4 billion atMarch 31, 2024 , decreasing$893 thousand or 0.06% fromDecember 31, 2023 . Net loans held for investment were$1.1 billion atMarch 31, 2024 , decreasing$12.1 million , or 1.1%, fromDecember 31, 2023 . - Total deposits decreased
$2.1 million , or 0.2%, fromDecember 31, 2023 . - Return on average equity (ROE) was at 6.4% for the first quarter of 2024, compared to 5.9% for the fourth quarter of 2023, 5.3% for the third quarter of 2023, and 12.5% for the first quarter of 2023.
- Net income improved
$234 thousand , or 15.8%, to$1.7 million for the first quarter of 2024 from$1.5 million for the fourth quarter of 2023. Net income improved$356 thousand , or 26.1% from$1.4 million for the third quarter of 2023. Net income decreased$1.4 million , or 44.3%, from$3.1 million in the first quarter of 2023. - Net interest margin (NIM) was 3.45% in both the first quarter of 2024 and the fourth quarter of 2023 compared to 4.02% in the first quarter of 2023. NIM on a fully tax-equivalent basis (FTE) (non-GAAP) was 3.46% in both the first quarter of 2024 and the linked quarter compared to 4.04% in the first quarter of 2023.
- Net interest income for the first quarter of 2024, decreased
$321 thousand , or 2.7%, compared to the prior quarter and$1.3 million , or 9.9%, compared to the first quarter of 2023. - Provision for credit losses of
$80 thousand was recognized for the first quarter of 2024, compared to$1.4 million for the fourth quarter of 2023 and$376 thousand for the first quarter of 2023. - Non-performing assets stayed flat at
$2.2 million or 0.15% of total assets atMarch 31, 2024 compared toDecember 31, 2023 . - Liquidity as of
March 31, 2024 , defined as cash and cash equivalents, unpledged securities, and available secured borrowing capacity, totaled$379.2 million , representing 26.2% of total assets compared to$342.5 million , representing 23.7% of total assets as ofDecember 31, 2023 .
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
Total deposits of
The Company's total stockholders' equity at
Non-performing assets (NPAs) totaled
The Company recognized a provision for credit losses of
As of
Net Interest Income
Net interest income for the first quarter of 2024 was
The Net Interest Margin (NIM) for the first quarter of 2024 and fourth quarter of 2023 was 3.45%, a decrease from 4.02% for the prior year quarter. On a fully tax-equivalent basis (FTE) (non-GAAP), NIM was 3.46%, for both the first quarter of 2024 and fourth quarter of 2023 compared to 4.04% for the first quarter of 2023. Average earning asset balances increased
Average loans increased
Noninterest Income
Total noninterest income was
Noninterest Expense
Noninterest expense totaled
Capital Management and Dividends
For the first quarter of 2024, the Company declared dividends of
Total consolidated equity increased
At
Non-GAAP Financial Measures
In reporting the results as of and for the quarter ended
Safe Harbor Statement Regarding Forward-Looking Statements
Statements in this press release, including without limitation, statements made in
These forward-looking statements are due to factors that could have a material adverse effect on the operations and future prospects of Old Point including, but not limited to, changes in or the effects of: interest rates and yields, such as increases or volatility in interest rates, and their impacts on macroeconomic conditions, customer and client behavior, Old Point's funding costs and Old Point's loan and securities portfolios; inflation and its impacts on economic growth and customer and client behavior; adverse developments in the financial services industry, such as the bank failures in 2023, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior; the sufficiency of liquidity and regulatory capital; general economic and business conditions in
The Company does not intend or assume any obligation to update, revise or clarify any forward-looking statements that may be made from time to time or on behalf of the Company, whether as a result of new information, future events or otherwise, except as otherwise required by law. In addition, past results of operations are not necessarily indicative of future results.
Information about
For more information, contact
|
||
Consolidated Balance Sheets |
|
|
(dollars in thousands, except share data) |
2024 |
2023 |
|
(unaudited) |
|
Assets |
|
|
|
|
|
Cash and due from banks |
$ 16,427 |
$ 14,731 |
Interest-bearing due from banks |
75,584 |
63,539 |
Federal funds sold |
1,300 |
489 |
Cash and cash equivalents |
93,311 |
78,759 |
Securities available-for-sale, at fair value |
199,798 |
204,278 |
Restricted securities, at cost |
5,239 |
5,176 |
Loans held for sale |
- |
470 |
Loans, net |
1,055,955 |
1,068,046 |
Premises and equipment, net |
30,178 |
29,913 |
Premises and equipment, held for sale |
344 |
344 |
Bank-owned life insurance |
35,353 |
35,088 |
|
1,650 |
1,650 |
Core deposit intangible, net |
176 |
187 |
Other assets |
23,485 |
22,471 |
Total assets |
$ 1,445,489 |
$ 1,446,382 |
|
|
|
Liabilities & Stockholders' Equity |
|
|
|
|
|
Deposits: |
|
|
Noninterest-bearing deposits |
$ 355,140 |
$ 331,992 |
Savings deposits |
632,696 |
655,694 |
Time deposits |
240,433 |
242,711 |
Total deposits |
1,228,269 |
1,230,397 |
Overnight repurchase agreements |
1,684 |
2,383 |
|
69,450 |
69,450 |
Subordinated notes |
29,701 |
29,668 |
Accrued expenses and other liabilities |
8,755 |
7,706 |
Total liabilities |
1,337,859 |
1,339,604 |
|
|
|
Stockholders' equity: |
|
|
Common stock, |
24,946 |
24,932 |
Additional paid-in capital |
17,193 |
17,099 |
Retained earnings |
83,289 |
82,277 |
Accumulated other comprehensive loss, net |
(17,798) |
(17,530) |
Total stockholders' equity |
107,630 |
106,778 |
Total liabilities and stockholders' equity |
$ 1,445,489 |
$ 1,446,382 |
|
|
|
|
Consolidated Statements of Income (unaudited) |
Three Months Ended |
||
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
Interest and Dividend Income: |
|
|
|
Loans, including fees |
$ 14,544 |
$ 14,766 |
$ 13,041 |
Due from banks |
799 |
1,072 |
64 |
Federal funds sold |
9 |
10 |
6 |
Securities: |
|
|
|
Taxable |
1,798 |
1,853 |
1,764 |
Tax-exempt |
139 |
139 |
212 |
Dividends and interest on all other securities |
94 |
97 |
66 |
Total interest and dividend income |
17,383 |
17,937 |
15,153 |
|
|
|
|
Interest Expense: |
|
|
|
Checking and savings deposits |
2,597 |
2,327 |
854 |
Time deposits |
2,172 |
2,645 |
537 |
Federal funds purchased, securities sold under |
|
|
|
agreements to repurchase and other borrowings |
1 |
1 |
37 |
|
778 |
807 |
617 |
Long term borrowings |
295 |
296 |
295 |
Total interest expense |
5,843 |
6,076 |
2,340 |
Net interest income |
11,540 |
11,861 |
12,813 |
Provision for credit losses |
80 |
1,359 |
376 |
Net interest income after provision for credit losses |
11,460 |
10,502 |
12,437 |
|
|
|
|
Noninterest Income: |
|
|
|
Fiduciary and asset management fees |
1,192 |
1,350 |
1,116 |
Service charges on deposit accounts |
758 |
780 |
753 |
Other service charges, commissions and fees |
883 |
888 |
1,109 |
Bank-owned life insurance income |
265 |
262 |
254 |
Mortgage banking income |
16 |
82 |
95 |
Gain on sale of repossessed assets |
22 |
- |
- |
Gain on sale of fixed assets |
- |
20 |
- |
Other operating income |
86 |
111 |
94 |
Total noninterest income |
3,222 |
3,493 |
3,421 |
|
|
|
|
Noninterest Expense: |
|
|
|
Salaries and employee benefits |
7,831 |
7,193 |
7,363 |
Occupancy and equipment |
1,173 |
1,198 |
1,195 |
Data processing |
1,315 |
1,267 |
1,179 |
Customer development |
55 |
175 |
113 |
Professional services |
585 |
599 |
673 |
Employee professional development |
211 |
222 |
234 |
Other taxes |
261 |
252 |
213 |
ATM and other losses |
231 |
219 |
255 |
Other operating expenses |
1,041 |
1,086 |
943 |
Total noninterest expense |
12,703 |
12,211 |
12,168 |
Income before income taxes |
1,979 |
1,784 |
3,690 |
Income tax expense |
262 |
301 |
607 |
Net income |
$ 1,717 |
$ 1,483 |
$ 3,083 |
|
|
|
|
Basic Earnings per Common Share: |
|
|
|
Weighted average shares outstanding |
5,039,819 |
5,039,064 |
4,999,887 |
Net income per share of common stock |
$ 0.34 |
$ 0.29 |
$ 0.62 |
|
|
|
|
Diluted Earnings per Common Share: |
|
|
|
Weighted average shares outstanding |
5,039,876 |
5,039,064 |
5,000,020 |
Net income per share of common stock |
$ 0.34 |
$ 0.29 |
$ 0.62 |
|
|
|
|
Cash Dividends Declared per Share: |
$ 0.14 |
$ 0.14 |
$ 0.14 |
|
|
|
|
|
|
|
|
||
Average Balance Sheets, Net Interest Income And Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||
(unaudited) |
|
|
|
||||||
|
|
Interest |
|
|
Interest |
|
|
Interest |
|
|
Average |
Income/ |
Yield/ |
Average |
Income/ |
Yield/ |
Average |
Income/ |
Yield/ |
(dollars in thousands) |
Balance |
Expense |
Rate** |
Balance |
Expense |
Rate** |
Balance |
Expense |
Rate** |
ASSETS |
|
|
|
|
|
|
|
|
|
Loans* |
$ 1,076,894 |
$ 14,544 |
5.42 % |
$ 1,082,059 |
$ 14,766 |
5.41 % |
$ 1,055,878 |
$ 13,042 |
5.01 % |
Investment securities: |
|
|
|
|
|
|
|
|
|
Taxable |
175,241 |
1,798 |
4.12 % |
172,474 |
1,853 |
4.26 % |
186,292 |
1,764 |
3.84 % |
Tax-exempt* |
26,115 |
176 |
2.70 % |
26,193 |
176 |
2.67 % |
38,206 |
268 |
2.85 % |
Total investment securities |
201,356 |
1,974 |
3.93 % |
198,667 |
2,029 |
4.05 % |
224,498 |
2,032 |
3.67 % |
Interest-bearing due from banks |
57,921 |
799 |
5.53 % |
78,393 |
1,072 |
5.42 % |
6,596 |
64 |
3.94 % |
Federal funds sold |
709 |
9 |
5.09 % |
777 |
10 |
5.11 % |
577 |
6 |
4.23 % |
Other investments |
5,201 |
94 |
7.33 % |
5,176 |
97 |
7.43 % |
3,632 |
66 |
7.32 % |
Total earning assets |
1,342,081 |
$ 17,420 |
5.21 % |
1,365,072 |
$ 17,974 |
5.22 % |
1,291,181 |
$ 15,210 |
4.78 % |
Allowance for credit losses |
(12,393) |
|
|
(11,784) |
|
|
(11,339) |
|
|
Other non-earning assets |
105,193 |
|
|
106,639 |
|
|
104,511 |
|
|
Total assets |
$ 1,434,881 |
|
|
$ 1,459,927 |
|
|
$ 1,384,353 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Time and savings deposits: |
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
$ 94,434 |
$ 3 |
0.01 % |
$ 101,567 |
$ 4 |
0.01 % |
$ 70,254 |
$ 3 |
0.02 % |
Money market deposit accounts |
452,198 |
2,587 |
2.29 % |
434,341 |
2,316 |
2.12 % |
428,941 |
842 |
0.80 % |
Savings accounts |
89,035 |
7 |
0.03 % |
93,981 |
7 |
0.03 % |
115,880 |
9 |
0.03 % |
Time deposits |
238,076 |
2,172 |
3.66 % |
268,234 |
2,645 |
3.91 % |
148,563 |
537 |
1.47 % |
Total time and savings deposits |
873,743 |
4,769 |
2.19 % |
898,123 |
4,972 |
2.20 % |
763,638 |
1,391 |
0.74 % |
Federal funds purchased, repurchase |
|
|
|
|
|
|
|
|
|
agreements and other borrowings |
2,484 |
1 |
0.32 % |
2,181 |
0 |
0.07 % |
7,959 |
37 |
1.91 % |
|
69,716 |
778 |
4.48 % |
69,450 |
807 |
4.61 % |
52,626 |
617 |
4.69 % |
Long term borrowings |
29,680 |
295 |
3.99 % |
29,649 |
296 |
3.96 % |
29,551 |
295 |
4.00 % |
Total interest-bearing liabilities |
975,623 |
5,843 |
2.40 % |
999,403 |
6,075 |
2.41 % |
853,774 |
2,340 |
1.11 % |
Demand deposits |
344,098 |
|
|
350,408 |
|
|
421,779 |
|
|
Other liabilities |
8,209 |
|
|
10,017 |
|
|
8,347 |
|
|
Stockholders' equity |
106,951 |
|
|
100,099 |
|
|
100,453 |
|
|
Total liabilities and stockholders' equity |
$ 1,434,881 |
|
|
$ 1,459,927 |
|
|
$ 1,384,353 |
|
|
Net interest margin* |
|
$ 11,577 |
3.46 % |
|
$ 11,899 |
3.46 % |
|
$ 12,870 |
4.04 % |
|
|
|
|
|
|
|
|
|
|
*Computed on a fully tax-equivalent basis (non-GAAP) using a 21% rate, adjusting interest income |
|
|
|
|
|
||||
by |
|
|
|||||||
**Annualized |
|
|
|
|
|
|
|
|
As of or for the quarters ended, |
||
Selected Ratios (unaudited) |
|
|
|
(dollars in thousands, except per share data) |
2024 |
2023 |
2023 |
|
|
|
|
Earnings per common share, diluted |
$ 0.34 |
$ 0.29 |
$ 0.62 |
Return on average assets (ROA) |
0.48 % |
0.40 % |
0.90 % |
Return on average equity (ROE) |
6.44 % |
5.88 % |
12.45 % |
Net Interest Margin (FTE) (non-GAAP) |
3.46 % |
3.46 % |
4.04 % |
Efficiency ratio |
86.05 % |
79.53 % |
74.95 % |
Efficiency ratio (FTE) (non-GAAP) |
85.83 % |
79.34 % |
74.69 % |
Book value per share |
21.35 |
21.19 |
20.52 |
Tangible Book Value per share (non-GAAP) |
20.99 |
20.82 |
20.14 |
Non-performing assets (NPAs) / total assets |
0.15 % |
0.15 % |
0.14 % |
Annualized Net Charge-Offs / average total loans |
0.12 % |
0.39 % |
0.07 % |
Allowance for credit losses on loans / total loans |
1.12 % |
1.13 % |
1.07 % |
|
|
|
|
Non-Performing Assets (NPAs) |
|
|
|
Nonaccrual loans |
$ 194 |
$ 188 |
$ 980 |
Loans > 90 days past due, but still accruing interest |
878 |
1,780 |
722 |
Repossessed assets |
1,080 |
215 |
279 |
Total non-performing assets |
$ 2,152 |
$ 2,183 |
$ 1,981 |
|
|
|
|
Other Selected Numbers |
|
|
|
Loans, net |
$ 1,055,955 |
$ 1,068,046 |
$ 1,069,714 |
Deposits |
1,228,269 |
1,230,397 |
1,199,615 |
Stockholders' equity |
107,630 |
106,778 |
102,598 |
Total assets |
1,445,489 |
1,446,382 |
1,416,151 |
Loans charged off during the quarter, net of recoveries |
336 |
1,053 |
179 |
Quarterly average loans |
1,076,894 |
1,082,059 |
1,055,878 |
Quarterly average assets |
1,434,881 |
1,459,927 |
1,384,353 |
Quarterly average earning assets |
1,342,081 |
1,365,072 |
1,291,181 |
Quarterly average deposits |
1,217,841 |
1,248,531 |
1,185,417 |
Quarterly average equity |
106,951 |
100,099 |
100,453 |
|
|
||
Reconciliation of Certain Non-GAAP Financial Measures (unaudited) |
|
||
(dollars in thousands, except per share data) |
Three Months Ended |
||
|
|
|
|
|
|
|
|
Fully Taxable Equivalent Net Interest Income |
|
|
|
Net interest income (GAAP) |
$ 11,540 |
$ 11,861 |
$ 12,813 |
FTE adjustment |
37 |
38 |
57 |
Net interest income (FTE) (non-GAAP) |
$ 11,577 |
$ 11,899 |
$ 12,870 |
Noninterest income (GAAP) |
3,222 |
3,493 |
3,421 |
Total revenue (FTE) (non-GAAP) |
$ 14,799 |
$ 15,392 |
$ 16,291 |
Noninterest expense (GAAP) |
12,703 |
12,211 |
12,168 |
|
|
|
|
Average earning assets |
$ 1,342,081 |
$ 1,365,072 |
$ 1,291,181 |
Net interest margin |
3.45 % |
3.45 % |
4.02 % |
Net interest margin (FTE) (non-GAAP) |
3.46 % |
3.46 % |
4.04 % |
|
|
|
|
Efficiency ratio |
86.05 % |
79.53 % |
74.95 % |
Efficiency ratio (FTE) (non-GAAP) |
85.83 % |
79.34 % |
74.69 % |
|
|
|
|
Tangible Book Value Per Share |
|
|
|
Total Stockholders Equity (GAAP) |
$ 107,630 |
$ 106,778 |
$ 102,598 |
Less goodwill |
1,650 |
1,650 |
1,650 |
Less core deposit intangible, net |
176 |
187 |
220 |
Tangible Stockholders Equity (non-GAAP) |
$ 105,804 |
$ 104,941 |
$ 100,728 |
|
|
|
|
Shares issued and outstanding |
5,040,391 |
5,040,095 |
5,000,331 |
|
|
|
|
Book value per share |
$ 21.35 |
$ 21.19 |
$ 20.52 |
Tangible book value per share (non-GAAP) |
$ 20.99 |
$ 20.82 |
$ 20.14 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/old-point-releases-first-quarter-2024-results-302132129.html
SOURCE