Old Point Financial Corporation Reports 23% Increase in Net Income to $9.5 Million for 2024

Old Point Financial Corporation reported a consolidated net income of $9.5 million for the year ended December 31, 2024, marking a 23% increase from the previous year's net income of $7.7 million. The earnings per share rose to $1.88, up from $1.54 in 2023. The company's total assets reached $1.5 billion, reflecting a modest increase of $4.2 million or 0.3% compared to the prior year. However, net loans held for investment decreased by $69.3 million, or 6.5%, to $998.7 million, primarily due to payoffs outpacing new loan production across various segments.

In terms of operational performance, total deposits increased by $24.5 million, or 2.0%, to $1.3 billion. The return on average equity improved to 8.6% from 7.61%, while the return on average assets also saw an increase to 0.65% from 0.54%. The net interest margin (NIM) slightly declined to 3.54% from 3.61% in 2023, attributed to rising interest expenses on deposits, which increased by 31.3% due to higher market rates. Interest income, however, rose by 8.7% to $72.4 million, driven by higher levels of overnight liquidity at the Federal Reserve.

Strategically, Old Point Financial has focused on enhancing its operational efficiency, which included a reduction in employee headcount by approximately 12%. This contributed to a decrease in noninterest expenses by $898,000, or 1.8%, for the year. The company continues to diversify its noninterest income streams, particularly through its Wealth management services, although noninterest income overall decreased by 3.3% due to lower mortgage banking income.

The company’s credit quality indicators remained stable, with non-performing assets increasing to $2.7 million, or 0.19% of total assets, from $2.2 million, or 0.15%, in the previous year. The allowance for credit losses on loans was $11.4 million, down from $12.2 million, reflecting the overall decrease in the loan portfolio. The company has maintained a strong capital position, with total stockholders' equity increasing to $114 million, up 6.7% from the previous year.

Looking ahead, Old Point Financial Corporation anticipates continued challenges in the economic environment, particularly concerning interest rate fluctuations and their impact on loan demand and credit quality. The company remains committed to monitoring its liquidity and capital resources closely while exploring opportunities for growth in its core banking and wealth management segments.