Old Point Financial (OPOF) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for the first quarter of 2025 was $2.2 million, a decrease of $722 thousand or 25.1% from the fourth quarter of 2024, but an increase of $441 thousand or 25.7% from the first quarter of 2024[1]. - Basic earnings per share decreased to $0.42 in Q1 2025 from $0.57 in Q4 2024, representing a decline of 26.3%[38]. - Adjusted Operating Earnings (non-GAAP) for Q1 2025 were $1,985 thousand, a decrease of 30.98% from $2,880 thousand in Q4 2024 but an increase of 15.59% from $1,717 thousand in Q1 2024[41]. - Diluted EPS (GAAP) was $0.42 in Q1 2025, down 26.32% from $0.57 in Q4 2024 and up 23.53% from $0.34 in Q1 2024[41]. - Noninterest income rose to $3,847 thousand in Q1 2025, up 18.6% from $3,244 thousand in Q4 2024[38]. - Total noninterest expense for Q1 2025 was $12,447 thousand, an increase of 2.98% from $12,088 thousand in the previous quarter[38]. Asset and Deposit Growth - Total assets were $1.5 billion as of March 31, 2025, increasing by $418 thousand or 0.03% from December 31, 2024[5]. - Total deposits increased by $2.6 million or 0.2% from December 31, 2024, with noninterest-bearing deposits rising by $15.7 million or 4.4%[8]. - Total deposits increased to $1,257,478 thousand as of March 31, 2025, compared to $1,254,914 thousand at December 31, 2024, showing a growth of 0.2%[36]. - Total assets increased to $1,450,988 thousand as of March 31, 2025, compared to $1,450,570 thousand in the previous quarter and $1,445,489 thousand a year ago[40]. Credit Quality and Losses - Provision for credit losses was $717 thousand for the first quarter of 2025, compared to $90 thousand in the fourth quarter of 2024[12]. - Non-performing assets totaled $4.2 million as of March 31, 2025, an increase of $1.5 million or 53.9% from December 31, 2024[11]. - Allowance for credit losses on loans was 1.17% of total loans as of March 31, 2025, compared to 1.13% in the previous quarter and 1.12% a year ago[40]. - Loans charged off during the quarter, net of recoveries, amounted to $351 thousand for the quarter ended March 31, 2025[40]. Return Metrics - Return on average equity (ROE) was 7.50% for the first quarter of 2025, down from 9.96% in the fourth quarter of 2024[5]. - Return on average assets (ROA) was 0.61% for the quarter ended March 31, 2025, down from 0.77% in the previous quarter and 0.48% a year ago[40]. - Return on average equity (ROE) decreased to 7.50% for the quarter ended March 31, 2025, compared to 9.96% in the previous quarter and 6.44% a year ago[40]. Dividends and Shareholder Information - The Company declared a dividend of $0.14 per share for the first quarter of 2025, representing a payout ratio of 33.0% of earnings per share[18]. - Cash dividends declared per share remained stable at $0.14 for Q1 2025, consistent with the previous quarter[38]. - Investors are encouraged to read the definitive proxy statement regarding the proposed transaction with TowneBank for important information[28]. Merger and Future Outlook - The Company entered into a merger agreement with TowneBank, subject to shareholder and regulatory approvals[2]. - The forward-looking statements include expectations regarding the proposed merger with TowneBank and anticipated future operations and financial performance[23]. - The Company is subject to significant risks and uncertainties that could materially affect its operations and future prospects, including the timely closing of the merger and regulatory approvals[25]. - The Company does not intend to update or clarify any forward-looking statements except as required by law, indicating a cautious approach to future projections[26]. Non-GAAP Financial Measures - The Company emphasizes the importance of non-GAAP financial measures to provide additional understanding of ongoing operations and enhance comparability with other financial periods[22]. - The book value per share of the Company's common stock was $22.96, and the tangible book value per share (non-GAAP) was $22.61 as of March 31, 2025[20]. - Total stockholders' equity (GAAP) increased to $117,217 thousand in Q1 2025 from $113,970 thousand in Q4 2024 and $107,630 thousand in Q1 2024[41].