Old Point Financial (US:OPOF)2024-07-25 20:45Financial 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]