Capital Adequacy and Regulatory Compliance - As of December 31, 2024, the Bank met all capital adequacy requirements under the Basel III Final Rules, including the capital conservation buffer[51]. - The Basel III Capital Rules require a minimum CET1 ratio of at least 4.5%, plus a 2.5% capital conservation buffer, resulting in a minimum CET1 ratio of at least 7%[50]. - The Bank has not elected to opt into the Community Bank Leverage Ratio Framework (CBLRF) as of December 31, 2024[53]. - The FDIC's basic limit on deposit insurance coverage is $250,000 per depositor[58]. - Total base assessment rates for institutions with less than $10 billion in assets range from 2.5 to 32 basis points as of December 31, 2024[59]. - The FDIC adopted a final rule to increase initial base deposit insurance assessment rate schedules uniformly by 2 basis points, effective from the first quarterly assessment period of 2023[60]. - The Bank received an "Outstanding" CRA rating during its last evaluation in 2022[67]. - The proposed rules from July 2023 will significantly alter how banks with $100 billion or more in total assets calculate risk-based assets, but do not apply to the Company[52]. - The Company does not expect any impact on its ability to receive dividends from the Bank based on its current financial condition[48]. - The Dodd-Frank Act allows the FDIC to manage the required amount of reserves for the DIF, with a target designated reserve ratio of 2%[59]. - The Company does not anticipate any material impact on its business, operations, or financial condition due to the modified CRA regulations, which will be applicable starting January 1, 2026, with certain data reporting requirements effective from January 1, 2027[68]. Regulatory and Compliance Obligations - The Company is subject to various laws and regulations aimed at combating money laundering and terrorist financing, which impose significant compliance costs and obligations[71]. - The Corporate Transparency Act requires reporting companies to disclose beneficial ownership interests, with initial filing obligations for newly-formed companies and subsequent reports for updates[73]. - The Company is monitoring regulatory developments related to the Corporate Transparency Act, including future FinCEN rulemakings, to assess its impact[74]. - The federal banking agencies have adopted guidelines for cybersecurity programs, expecting financial institutions to maintain sufficient business continuity planning processes[75]. - The Company is subject to consumer protection laws and regulations, including the Truth in Lending Act and the Equal Credit Opportunity Act, which mandate certain disclosure requirements[78]. Economic and Interest Rate Risk - The Company’s earnings are influenced by the monetary policies of the Federal Reserve Board, which can affect the source and cost of funds and rates of return on loans and investments[86]. - Future legislative and regulatory initiatives may change the operating environment of the Company in substantial and unpredictable ways, potentially affecting costs and permissible activities[87]. - Interest rate risk is the primary market risk exposure for the Company, managed through policies approved by the ALCO and Board of Directors[292]. - As of December 31, 2024, the company's net interest income is projected to decrease marginally under various interest rate scenarios, with a decrease of $3,570,000 (6.90%) under a -300 basis points scenario[296]. - The company's balance sheet is slightly asset sensitive for a 300 basis points upward scenario, indicating a potential increase in net interest income when interest rates rise[294]. - The estimated change in net economic value of equity at December 31, 2024 shows an increase of $24,600,000 (9.97%) under a +300 basis points scenario[300]. - Under a -200 basis points scenario, the net economic value of equity is projected to decrease by $38,400,000 (15.56%)[300]. - The company uses computer simulation analysis to project net interest income under multiple interest rate scenarios, incorporating various assumptions such as growth and changes in asset and liability mix[293]. - Management cannot predict future interest rates or their exact effect on net interest income, emphasizing the inherent limitations in such computations[296]. - Economic value simulation indicates the longer-term earnings capability of the balance sheet, calculated based on discounted cash flow analysis[299]. - The company anticipates that changes in interest rates may significantly affect prepayments of loans and mortgage-backed securities, potentially impacting interest rate sensitivity[297]. - The economic value simulation for December 31, 2023 shows a change in economic value of equity of $3,200,000 (1.34%) under a +300 basis points scenario[300]. - The company aims to maintain a relatively neutral interest rate risk profile to minimize exposure to fluctuations in market rates[294].

Financial Performance - Net income for Q4 2024 was $2.9 million, a 20.9% increase from Q3 2024 and a 94.2% increase from Q4 2023[2] - Net income for the twelve months ended December 31, 2024, was $9,508,000, representing a 23.0% increase from $7,730,000 in the previous year[31] - Basic earnings per share for Q4 2024 was $0.57, up from $0.47 in Q3 2024 and $0.29 in Q4 2023, indicating a significant year-over-year growth of 96.6%[31] - Earnings per common share, diluted, increased to $0.57 in Q4 2024 from $0.47 in Q3 2024 and $0.29 in Q4 2023[35] Assets and Liabilities - Total assets reached $1.5 billion, a 0.3% increase from December 31, 2023[3] - Total assets as of December 31, 2024, were $1,478,544,000, an increase from $1,465,230,000 at the end of Q3 2024[32] - Total assets increased to $1,454,342 thousand in 2024 from $1,429,051 thousand in 2023, indicating a growth of approximately 1.6%[33] - Net loans held for investment decreased by $69.3 million, or 6.5%, from December 31, 2023, totaling $998.7 million[3] - The Company reported $998.71 million in net loans as of December 31, 2024, down from $1,068.05 million in 2023[29] Deposits and Equity - Total deposits increased by $24.5 million, or 2.0%, from December 31, 2023, reaching $1.3 billion[6] - Total deposits increased to $1,254.91 million as of December 31, 2024, up from $1,230.40 million in 2023[30] - The Company's total stockholders' equity increased by $7.2 million, or 6.7%, from December 31, 2023, to $114.0 million[7] - Total stockholders' equity as of December 31, 2024, was $113,970 thousand, up from $106,778 thousand in 2023, representing an increase of approximately 6.0%[36] Income and Expenses - Total interest and dividend income for Q4 2024 was $18,386,000, a slight decrease of 0.7% from $18,520,000 in Q3 2024, and an increase of 2.5% from $17,937,000 in Q4 2023[31] - Net interest income after provision for credit losses for Q4 2024 was $12,162,000, compared to $12,028,000 in Q3 2024 and $10,502,000 in Q4 2023, reflecting a year-over-year increase of 15.8%[31] - Noninterest income for Q4 2024 was $3.2 million, a decrease from $3.5 million in Q3 2024 and Q4 2023[15] - Total noninterest income for the twelve months ended December 31, 2024, was $13,409,000, slightly down from $13,873,000 in the previous year[31] - Total noninterest expense for the twelve months ended December 31, 2024, was $49,509,000, a decrease from $50,407,000 in the previous year[31] - Noninterest expense totaled $12.1 million for Q4 2024, a decrease from $12.4 million in Q3 2024 and $12.2 million in Q4 2023[16] Ratios and Margins - Return on average equity (ROE) was 9.96% for Q4 2024, up from 8.39% in Q3 2024 and 5.88% in Q4 2023[3] - The return on average assets (ROA) improved to 0.77% in Q4 2024 from 0.65% in Q3 2024, and 0.40% in Q4 2023[35] - The efficiency ratio for 2024 was reported at 78.01%, slightly improved from 78.53% in Q3 2024 and 79.53% in Q4 2023[35] - Net interest margin (NIM) for Q4 2024 was 3.52%, a decrease from 3.56% in Q3 2024 but an increase from 3.45% in Q4 2023[8] - The net interest margin for Q4 2024 was 3.53%, compared to 3.57% in Q3 2024 and 3.46% in Q4 2023[32] - The net interest margin (FTE) for 2024 was 3.55%, compared to 3.62% in 2023, indicating a slight decline[35] Credit Quality - Provision for credit losses was $90 thousand in Q4 2024, down from $282 thousand in Q3 2024 and $1.4 million in Q4 2023[10] - Non-performing assets (NPAs) as a percentage of total assets remained stable at 0.19% in Q4 2024, compared to 0.18% in Q3 2024 and 0.15% in Q4 2023[35] - The allowance for credit losses on loans was 1.13% of total loans as of December 31, 2024, consistent with the previous year[35] Dividends - For Q4 2024, the Company declared a dividend of $0.14 per share, maintaining a payout ratio of 24.7% of earnings per share[17] - Cash dividends declared per share remained consistent at $0.14 for both Q4 2024 and Q3 2024[31] - The Company continues to review cash dividends and payout ratios in light of economic conditions and future earnings expectations[17] Other Information - The Company emphasizes the importance of non-GAAP financial measures for understanding ongoing operations and enhancing comparability with prior periods[21] - The Company expects to recover investments in debt securities through scheduled payments of principal and interest, with unrealized losses not expected to affect earnings or regulatory capital[18] - The book value per share of the Company's common stock was $22.44, with a tangible book value per share of $22.09 as of December 31, 2024[20] - The average balance of loans for Q4 2024 was $1,018,029,000, with an interest income of $14,414,000, yielding an interest rate of 5.63%[32] - The average balance of loans for 2024 was $1,048,395 thousand, with an interest income of $58,733 thousand and a yield of 5.60%, compared to $1,078,303 thousand, $56,305 thousand, and 5.22% in 2023[33]

Core Viewpoint - Old Point Financial Corporation reported record earnings for 2024 despite a challenging banking environment, with a focus on capital, asset quality, liquidity, and expense discipline [2] Financial Performance - Net income for Q4 2024 was $2.9 million, up from $2.4 million in Q3 2024 and $1.5 million in Q4 2023, with diluted earnings per share of $0.57 [1] - For the year ended December 31, 2024, net income was $9.5 million, an increase of 23% from $7.7 million in 2023 [1][8] - Return on average equity (ROE) for Q4 2024 was 9.96%, compared to 8.39% in Q3 2024 and 5.88% in Q4 2023 [8] - Return on average assets (ROA) for Q4 2024 was 0.77%, up from 0.64% in Q3 2024 and 0.40% in Q4 2023 [8] Balance Sheet and Asset Quality - Total assets increased to $1.5 billion as of December 31, 2024, up $4.2 million from the previous year [4] - Net loans held for investment decreased by $69.3 million, or 6.5%, to $998.7 million, primarily due to declines in consumer, construction, and commercial loans [4] - Total deposits rose to $1.3 billion, an increase of $24.5 million, or 2.0%, from December 31, 2023 [5] - Non-performing assets (NPAs) were $2.7 million, representing 0.19% of total assets, slightly up from 0.15% a year earlier [7] Noninterest Income and Expense - Total noninterest income for Q4 2024 was $3.2 million, down from $3.5 million in Q3 2024 and Q4 2023 [13] - Noninterest expense totaled $12.1 million for Q4 2024, a decrease from $12.4 million in Q3 2024 and $12.2 million in Q4 2023 [14] Capital Management - Total stockholders' equity increased by $7.2 million, or 6.7%, to $114.0 million as of December 31, 2024 [6] - The Company declared a dividend of $0.14 per share for Q4 2024, consistent with the previous year, representing a payout ratio of 24.7% [15] Interest Income and Margin - Net interest income for Q4 2024 was $12.3 million, a slight decrease from the previous quarter but an increase of 3.3% from Q4 2023 [10] - Net interest margin (NIM) was 3.52% for Q4 2024, down from 3.56% in Q3 2024 but up from 3.45% in Q4 2023 [11]

Financial Performance - Net income for Q3 2024 was $2.4 million, a 74.9% increase from $1.4 million in Q3 2023, with diluted earnings per share rising from $0.27 to $0.47[118] - Return on average equity (ROE) for Q3 2024 was 8.39%, up from 5.25% in Q3 2023[120] - Net interest income for Q3 2024 was $12.3 million, a 7.7% increase from $11.4 million in Q3 2023[124] - Total noninterest income for Q3 2024 was $3.5 million, a slight decrease of $10 thousand compared to Q3 2023, primarily due to lower mortgage banking income[160] - Noninterest expense decreased to $12.4 million in Q3 2024 from $12.9 million in Q3 2023, driven by reductions in salaries and employee benefits[161] - Total revenue (FTE) (non-GAAP) for the three months ended September 30, 2024, was $15,819, up from $14,950 in the same period last year, reflecting a growth of 5.8%[218] - Efficiency ratio for the three months ended September 30, 2024, was 78.53%, significantly improved from 86.40% in the same period last year[218] Asset and Liability Management - Total assets reached $1.5 billion as of September 30, 2024, reflecting a $31.6 million or 2.2% increase since December 31, 2023[119] - Net loans held for investment decreased by $54.0 million, or 5.1%, to $1.0 billion from December 31, 2023[119] - Total deposits increased by $52.4 million, or 4.3%, from December 31, 2023[119] - Total stockholders' equity increased by 8.1% to $115.5 million as of September 30, 2024, from $106.8 million on December 31, 2023[197] - The loan portfolio's ending balance was $1,025.7 million as of September 30, 2024, down from $1,080.3 million at December 31, 2023[174] - The Company had FHLB advances of $40.0 million as of September 30, 2024, down from $69.5 million at December 31, 2023[166] - The Company experienced an increase in cash and cash equivalents by $96.0 million from December 31, 2023, to September 30, 2024[164] Credit Quality - Provision for credit losses was $282 thousand in Q3 2024, down from $505 thousand in Q3 2023[125] - Charged-off loans totaled $1.5 million in the first nine months of 2024, compared to $1.2 million in the same period of 2023, indicating a rise in loan defaults[157] - The annualized net loans charged off to average loans ratio was 0.18% for Q3 2024, up from 0.09% in Q3 2023, reflecting increased credit risk[157] - The Allowance for Credit Losses (ACL) was $11.9 million as of September 30, 2024, down from $12.4 million as of December 31, 2023[182] - The ACLL (Allowance for Credit Losses on Loans) decreased to $11,700 thousand from $12,206 thousand, a reduction of 4.2%[183] - Nonperforming assets remained low as of September 30, 2024, although future economic conditions could impact performance[178] Interest Rate and Economic Sensitivity - Net interest margin (NIM) improved to 3.56% in Q3 2024, compared to 3.33% in Q3 2023[123] - The company anticipates a marginal decrease in net interest income under various interest rate scenarios, with a projected decrease of $4,380 (9.15%) if rates increase by 300 basis points[230] - The company is slightly asset sensitive as of September 30, 2024, indicating that net interest income will increase with rising interest rates[228] - The estimated change in net economic value for a +300 basis points change in the yield curve is $32,400 thousand, representing a 13.97% increase[233] Capital and Liquidity - As of September 30, 2024, the Common Equity Tier 1 Capital to Risk-Weighted Assets ratio is 12.76%, significantly above the regulatory minimum of 4.5%[205] - The Total Capital to Risk-Weighted Assets ratio stands at 13.80%, exceeding the regulatory minimum of 8.0%[205] - The Tier 1 Leverage ratio is reported at 9.99%, well above the required minimum of 4.0%[205] - The liquidity coverage ratio is reported at 933.4%, indicating strong liquidity management[211] - Total funding sources amount to $778,667 thousand, with available liquidity after commitments totaling $738,667 thousand[211] Strategic Initiatives - The Company plans to consider investing capital in share repurchases to improve shareholder return, as measured by ROE and EPS[198] - The Company is focusing on increasing lower-cost deposits by targeting new noninterest-bearing deposits and savings deposits[194] - The company is focusing on expense reduction initiatives and strategic shifts in mortgage lending to enhance future financial performance[219] Regulatory and Compliance - The company has maintained effective disclosure controls and procedures as evaluated by the CEO and CFO[235] - There were no changes in the company's internal control over financial reporting during the third quarter ended September 30, 2024[238]

Core Points - Cathy W. Liles has been appointed as Senior Vice President and Chief Financial Officer of Old Point Financial Corporation and Executive Vice President and Chief Financial Officer of Old Point National Bank, having served as Interim CFO since July 2024 [1] - The appointment reflects the company's commitment to excellence and growth strategies, with Liles receiving full confidence from the Board of Directors [1] Company Background - Old Point Financial Corporation (NASDAQ: OPOF) is the parent company of Old Point National Bank and Old Point Wealth Management, serving the Hampton Roads and Richmond regions of Virginia [3] - Old Point National Bank is a locally owned community bank offering a wide range of financial services, including checking, insurance, mortgage products, and commercial lending [3] - Old Point Wealth Management is the largest wealth management services provider headquartered in Hampton Roads, Virginia, providing local asset management by experienced professionals [3] Executive Background - Cathy Liles joined Old Point in May 2024 as Senior Vice President and Chief Accounting Officer, previously holding positions at American National Bankshares Inc. and Carter Bank & Trust [2] - Liles is a Certified Public Accountant with a B.S. in Accounting from Belmont Abby College in North Carolina and is a member of the Virginia Bankers Association's CFO Committee [2]

Financial Performance - Net income for Q3 2024 was $2.4 million, a decrease of $147 thousand or 5.8% from Q2 2024, but an increase of $1.0 million or 74.9% from Q3 2023[1][4] - Net income for Q3 2024 was $2,382,000, representing a 75% increase from $1,362,000 in Q3 2023[32] - Basic earnings per share for Q3 2024 were $0.47, compared to $0.27 in Q3 2023, marking a significant increase of 74.1%[32] - Return on average equity (ROE) was 8.39% for Q3 2024, down from 9.43% in Q2 2024, but up from 5.25% in Q3 2023[4] - Return on average assets (ROA) improved to 0.64% for the nine months ended September 30, 2024, compared to 0.37% in 2023[36] - Return on average equity (ROE) rose to 8.39% for the nine months ended September 30, 2024, up from 5.25% in 2023[36] Assets and Liabilities - Total assets increased by $31.6 million or 2.2% to $1.5 billion as of September 30, 2024, while net loans held for investment decreased by $54.0 million or 5.1%[3][7] - Total assets increased to $1,478,009 thousand as of September 30, 2024, compared to $1,446,382 thousand at the end of 2023[29] - Total assets increased to $1,446,216 thousand as of September 30, 2024, compared to $1,418,646 thousand in 2023, reflecting a growth of 1.95%[35] - Total loans net amounted to $1,014,012 thousand as of September 30, 2024, down from $1,042,774 thousand in 2023, reflecting a decrease of 2.8%[36] Deposits - Total deposits rose by $52.4 million or 4.3% to $1.3 billion as of September 30, 2024, driven by increases in noninterest-bearing deposits and time deposits[3][8] - Total deposits increased to $1,282,786 thousand as of September 30, 2024, compared to $1,236,575 thousand in 2023, representing a growth of 3.73%[36] - Noninterest-bearing deposits increased to $353,118 thousand as of September 30, 2024, compared to $331,992 thousand at December 31, 2023, marking an increase of approximately 6.4%[30] Income and Expenses - Net interest income increased by $194 thousand or 1.6% to $12.3 million in Q3 2024 compared to Q2 2024, and by $884 thousand or 7.7% compared to Q3 2023[5][13] - Total interest and dividend income for Q3 2024 was $18,520,000, an increase of 7.7% compared to $17,189,000 in Q3 2023[32] - Net interest income after provision for credit losses was $12,028,000 for Q3 2024, up from $10,921,000 in Q3 2023, reflecting a year-over-year increase of 10.1%[32] - Noninterest expense totaled $12.4 million in Q3 2024, a slight increase of $70 thousand from Q2 2024, but a decrease of $775 thousand or 2.0% compared to the same period in 2023[16] - Total noninterest expense decreased to $12,394,000 in Q3 2024 from $12,881,000 in Q3 2023, a reduction of 3.8%[32] - Noninterest income totaled $3,472,000 in Q3 2024, slightly down from $3,482,000 in Q3 2023, indicating a decrease of 0.3%[32] Capital and Equity - The Tier 1 Capital ratio improved to 12.76% as of September 30, 2024, compared to 11.45% at December 31, 2023[9] - Total consolidated equity increased by $8.7 million to $115.457 million as of September 30, 2024, compared to December 31, 2023, primarily due to net income and lower unrealized losses in securities[18] - The book value per share of the Company's common stock was $22.74, while the tangible book value per share (non-GAAP) was $22.38 as of September 30, 2024[20] - Tangible Stockholders Equity (non-GAAP) increased to $113,653,000 in Q3 2024 from $97,678,000 in Q3 2023, a growth of 16.3%[37] - Book value per share rose to $22.74 in Q3 2024, compared to $19.75 in Q3 2023, marking an increase of 15.1%[37] Credit Quality - The provision for credit losses was $282 thousand in Q3 2024, compared to $261 thousand in Q2 2024 and $505 thousand in Q3 2023[12] - Non-performing assets increased to $2.7 million or 0.18% of total assets as of September 30, 2024, up from $2.0 million or 0.14% in Q2 2024[6][11] - The provision for credit losses was $282,000 in Q3 2024, down from $505,000 in Q3 2023, indicating a decrease of 44.3%[32] - Non-performing assets (NPAs) as a percentage of total assets was 0.18% as of September 30, 2024, compared to 0.19% in 2023, showing a slight improvement[36] Operational Efficiency - The efficiency ratio improved to 78.53% for the nine months ended September 30, 2024, down from 86.40% in 2023, indicating enhanced operational efficiency[36] - Efficiency ratio for Q3 2024 improved to 78.53%, down from 86.40% in Q3 2023, indicating better cost management[37] Forward-Looking Statements - Forward-looking statements indicate potential impacts from economic uncertainties, interest rate changes, and regulatory actions on future performance[22]

Core Viewpoint - Old Point Financial Corporation reported a net income of $2.4 million for Q3 2024, a slight decrease from Q2 2024 but a significant increase from Q3 2023, indicating strong financial performance despite economic uncertainties [1][2]. Financial Performance - Net income for Q3 2024 was $2.4 million, down from $2.5 million in Q2 2024 but up from $1.4 million in Q3 2023 [1]. - Diluted earnings per share for Q3 2024 were $0.47, compared to $0.50 in Q2 2024 and $0.27 in Q3 2023 [1][28]. - For the nine months ended September 30, 2024, net income was $6.6 million, compared to $6.2 million for the same period in 2023 [1]. Balance Sheet and Asset Quality - Total assets increased to $1.5 billion as of September 30, 2024, up by $31.6 million or 2.2% from December 31, 2023 [3][4]. - Net loans held for investment decreased to $1.0 billion, down $54.0 million or 5.1% from December 31, 2023 [3][4]. - Total deposits rose to $1.3 billion, an increase of $52.4 million or 4.3% from December 31, 2023 [5]. Profitability Metrics - Return on average equity (ROE) was 8.39% for Q3 2024, down from 9.43% in Q2 2024 but up from 5.25% in Q3 2023 [3]. - Return on average assets (ROA) was 0.64% for Q3 2024, compared to 0.71% in Q2 2024 and 0.37% in Q3 2023 [3]. Net Interest Income and Margin - Net interest income for Q3 2024 was $12.3 million, an increase of $194 thousand or 1.6% from Q2 2024 and $884 thousand or 7.7% from Q3 2023 [9]. - Net interest margin (NIM) was 3.56% for Q3 2024, down from 3.62% in Q2 2024 but up from 3.33% in Q3 2023 [10]. Noninterest Income and Expense - Total noninterest income was $3.5 million for Q3 2024, unchanged from Q2 2024 and slightly down from Q3 2023 [12]. - Noninterest expense totaled $12.4 million for Q3 2024, a slight increase from $12.3 million in Q2 2024 but a decrease from $12.9 million in Q3 2023 [13]. Capital Management - The Company declared a dividend of $0.14 per share for Q3 2024, consistent with Q3 2023, representing a payout ratio of 29.8% of earnings per share [14]. - Total stockholders' equity increased to $115.5 million as of September 30, 2024, up $8.7 million or 8.1% from December 31, 2023 [6].

Financial Performance - Consolidated net income for the second quarter of 2024 was $2.5 million, an increase of $727 thousand or 40.3% compared to $1.8 million in the second quarter of 2023[94]. - Return on average equity (ROE) was 9.4% for the second quarter of 2024, up from 7.0% for the same period in 2023[97]. - Net interest income for the second quarter of 2024 was $12.1 million, an increase of $17 thousand or 0.1% from the second quarter of 2023[98]. - Total noninterest income for Q2 2024 was $3.5 million, a slight decrease of $6 thousand compared to Q2 2023, primarily due to lower mortgage banking income[129]. - Noninterest expense decreased to $12.3 million in Q2 2024 from $13.1 million in Q2 2023, primarily due to a 12% reduction in employee headcount[130]. - The efficiency ratio improved to 79.07% for the three months ended June 30, 2024, compared to 84.41% for the same period in 2023[177]. Asset and Loan Management - Total assets decreased by $23.0 million or 1.6% from December 31, 2023, totaling $1.4 billion as of June 30, 2024[95]. - Net loans held for investment were $1.0 billion at June 30, 2024, a decrease of $25.3 million or 2.4% from December 31, 2023[95]. - Average loans decreased by $26.8 million, or 2.5%, in Q2 2024 compared to Q2 2023, and by $3.0 million, or 0.3%, for the first six months of 2024 compared to the same period in 2023[114]. - The company's loan portfolio totaled $1.054 billion as of June 30, 2024, with a notable decrease in commercial and industrial loans by $7.5 million[141]. - As of June 30, 2024, total loans decreased to $1,054.6 million from $1,080.3 million as of December 31, 2023, representing a decline of 2.4%[146]. Deposits and Funding - Total deposits increased by $6.2 million or 0.5% from December 31, 2023[97]. - Total deposits increased to $1.2 billion, up $6.2 million or 0.5% from December 31, 2023[155]. - Average interest-bearing deposits in other banks increased by $72.2 million in Q2 2024 and $61.8 million for the first six months of 2024 compared to the respective periods in 2023[116]. - FHLB advances decreased from $69.5 million at December 31, 2023, to $39.6 million as of June 30, 2024, indicating a reduction in reliance on borrowed funds[133]. Credit Quality and Losses - Provision for credit losses for Q2 2024 was $261 thousand, a decrease from $361 thousand in Q2 2023, indicating improved credit quality[126]. - Charged-off loans totaled $977 thousand for the first six months of 2024, compared to $754 thousand in the same period of 2023, indicating an increase in loan defaults[126]. - The allowance for credit losses (ACL) decreased to $12.1 million from $12.4 million, a decline of 2.4%[148]. - Nonperforming assets increased by $516 thousand to $2.0 million or 0.14% of total assets at June 30, 2024, compared to 0.10% at June 30, 2023[98]. - Total nonperforming assets decreased to $1.96 million from $2.18 million, a reduction of 10.3%[146]. Capital and Liquidity - Total stockholders' equity as of June 30, 2024, was $110.0 million, reflecting a 3.0% increase from $106.8 million on December 31, 2023[159]. - The Common Equity Tier 1 Capital to Risk-Weighted Assets ratio was 12.07%, significantly above the regulatory minimum of 4.5%[165]. - The Company reported a Total Capital to Risk-Weighted Assets ratio of 13.09% as of June 30, 2024, exceeding the minimum requirement of 8.0%[165]. - The liquidity coverage ratio was 771.4%, indicating strong liquidity management relative to outstanding commitments[171]. Market Risks and Economic Conditions - The Company is exposed to significant risks including changes in interest rates, inflation, and economic conditions, which could adversely affect operations and future prospects[180]. - The Company anticipates a marginal decrease in net interest income under various interest rate scenarios, with a projected decrease of 5.27% for a +300 basis points change[189]. - The estimated change in net economic value of equity is projected to increase by 5.68% for a +300 basis points change in the yield curve[191]. - The Company maintains a rates neutral interest sensitivity position as of June 30, 2024, with no predictions on the direction or magnitude of future rates[187]. Regulatory and Compliance - The Company did not opt into the Community Bank Leverage Ratio framework, which could have simplified capital adequacy requirements[163]. - The Company has not experienced any changes in internal control over financial reporting that materially affect its financial reporting as of June 30, 2024[196]. - The Company is involved in various legal proceedings, but management believes these will not have a material adverse effect on its consolidated financial position[197].

Financial Performance - Net income for Q2 2024 was $2.5 million, a 47.3% increase from $1.7 million in Q1 2024 and a 40.3% increase from $1.8 million in Q2 2023[2][11] - Total interest and dividend income for Q2 2024 was $18,118,000, an increase of 4.24% from $17,383,000 in Q1 2024 and up 10.66% from $16,347,000 in Q2 2023[33] - Net interest income after provision for credit losses for Q2 2024 was $11,855,000, compared to $11,460,000 in Q1 2024, reflecting a 3.44% increase[33] - Noninterest income totaled $3,471,000 in Q2 2024, up from $3,222,000 in Q1 2024, marking an increase of 7.71%[33] - Basic earnings per share for Q2 2024 was $0.50, up from $0.34 in Q1 2024 and $0.36 in Q2 2023[33] - Net income for Q2 2024 was $2,529,000, representing a 47.24% increase from $1,717,000 in Q1 2024 and a 40.36% increase from $1,802,000 in Q2 2023[33] - Return on average assets (ROA) improved to 0.71% for the quarter ended June 30, 2024, compared to 0.48% in the previous quarter[38] - Earnings per common share (diluted) increased to $0.50 for the quarter ended June 30, 2024, compared to $0.34 for the previous quarter and $0.36 for the same quarter in 2023[38] Assets and Liabilities - Total assets decreased by $23.0 million, or 1.6%, to $1.4 billion as of June 30, 2024, compared to December 31, 2023[6][8] - Total assets as of June 30, 2024, were $1,438,329,000, compared to $1,434,881,000 as of March 31, 2024[34] - Total assets as of June 30, 2024, were $1,423,354 thousand, a slight decrease from $1,445,489 thousand as of March 31, 2024[38] - Net loans held for investment decreased by $25.3 million, or 2.4%, to $1.0 billion as of June 30, 2024[6][8] - Total deposits increased by $6.2 million, or 0.5%, to $1.2 billion as of June 30, 2024[6][9] - Total deposits increased to $1,236,575 million as of June 30, 2024, compared to $1,230,397 million at the end of 2023[32] - Total deposits increased to $1,236,575 thousand as of June 30, 2024, compared to $1,228,269 thousand as of March 31, 2024[38] Expenses and Efficiency - Noninterest expense decreased to $12.3 million in Q2 2024 from $12.7 million in Q1 2024 and $13.1 million in Q2 2023[19] - Total noninterest expense decreased to $12,324,000 in Q2 2024 from $12,703,000 in Q1 2024, a reduction of 2.97%[33] - The efficiency ratio for the six months ended June 30, 2024, was 82.46%, compared to 79.58% for the same period in 2023[39] - The company expects cost-saving initiatives to reduce noninterest expenses by approximately $5.0 million annually once fully implemented[4] Capital and Dividends - The Company declared a dividend of $0.14 per share for Q2 2024, maintaining a payout ratio of 28.0% of earnings per share[20] - Total consolidated equity increased by $3.2 million to $109.996 million as of June 30, 2024, compared to December 31, 2023, primarily due to net income and lower unrealized losses[21] - The book value per share of the Company's common stock was $21.66, with a tangible book value per share of $21.30 as of June 30, 2024[23] - Book value per share increased to $21.66 as of June 30, 2024, compared to $21.35 as of March 31, 2024[39] Risk and Uncertainty - The Company is subject to significant risks and uncertainties, including changes in interest rates, economic conditions, and competition in the financial services market[27] - The Company does not intend to update forward-looking statements unless required by law, emphasizing the uncertainty of future results[28] Credit Quality - The allowance for credit losses was $12.1 million as of June 30, 2024, with a ratio of 1.12% of loans held for investment[13] - The allowance for credit losses on loans was 1.12% of total loans as of June 30, 2024, unchanged from the previous quarter[38] - Non-performing assets (NPAs) decreased to $1,959 thousand as of June 30, 2024, down from $2,152 thousand in the previous quarter[38] Liquidity - Liquidity totaled $403.8 million, representing 28.4% of total assets as of June 30, 2024, compared to 23.7% as of December 31, 2023[11]

Core Viewpoint - Old Point Financial Corporation reported improved financial performance in Q2 2024, with net income of $2.5 million, marking a significant increase from both the previous quarter and the same quarter last year. The company also highlighted strong asset quality and growth in core deposits despite a slowdown in loan growth [1][2]. Financial Performance - Net income for Q2 2024 was $2.5 million, up 47.3% from $1.7 million in Q1 2024 and up 40.3% from $1.8 million in Q2 2023 [1][10]. - Diluted earnings per share increased to $0.50 in Q2 2024 from $0.34 in Q1 2024 and $0.36 in Q2 2023 [1][10]. - Year-to-date net income for the first half of 2024 was $4.2 million, compared to $4.9 million for the same period in 2023 [1]. Balance Sheet and Asset Quality - Total assets decreased by $23 million, or 1.6%, to $1.4 billion as of June 30, 2024, compared to December 31, 2023 [1][9]. - Net loans held for investment decreased by $25.3 million, or 2.4%, to $1.0 billion [1][9]. - Total deposits increased by $6.2 million, or 0.5%, to $1.2 billion [1][9]. - Non-performing assets totaled $2.0 million, representing 0.14% of total assets, a decrease from 0.15% in Q1 2024 [1][2]. Net Interest Income and Margin - Net interest income for Q2 2024 was $12.1 million, an increase of $576 thousand, or 5.0%, from Q1 2024 [3][10]. - The net interest margin (NIM) was 3.62% for Q2 2024, up from 3.45% in Q1 2024 but down from 3.67% in Q2 2023 [3][10]. Noninterest Income and Expense - Total noninterest income was $3.5 million for Q2 2024, an increase from $3.2 million in Q1 2024 [4][10]. - Noninterest expense decreased to $12.3 million in Q2 2024 from $12.7 million in Q1 2024 and $13.1 million in Q2 2023 [5][10]. Capital Management - The company declared a dividend of $0.14 per share for Q2 2024, consistent with the same quarter in 2023, representing a payout ratio of 28.0% [5][10]. - Total stockholders' equity increased by $3.2 million to $110.0 million as of June 30, 2024, primarily due to net income and lower unrealized losses in securities [5][10].