Old Point Financial Corporation Reports First Quarter 2025 Earnings and Merger Plans
Old Point Financial Corporation Reports First Quarter 2025 Earnings and Merger Plans
Old Point Financial Corporation, the parent company of Old Point National Bank, recently disclosed its financial results for the first quarter of 2025. The company reported a net income of $2.2 million, which translates to diluted earnings of $0.42 per share. This performance reflects a decrease from the previous quarter’s income of $2.9 million ($0.57 per share) but marks an increase compared to the $1.7 million earned in the first quarter of 2024 ($0.34 per share).
In terms of adjusted operating earnings, which are measured on a non-GAAP basis, Old Point reported $2.0 million, or $0.39 per diluted share. This shows an improvement from the $1.7 million, or $0.34 per share, reported in the first quarter of 2024.
On April 2, 2025, Old Point has taken a significant step in expanding its business operations through a merger agreement with TowneBank. This strategic move will see Old Point merge into TowneBank, with the latter serving as the surviving entity. The merger is contingent upon receiving necessary approvals from shareholders, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and other regulatory authorities.
Robert F. Shuford, Jr., the Chairman and CEO of Old Point and the Bank, expressed optimism regarding the merger, highlighting that the first quarter of 2025 was historically significant for the Old Point family. He noted the excitement surrounding the potential partnership with TowneBank and mentioned that both teams are working collaboratively to complete the merger efficiently. He believes this partnership will enhance growth potential and deliver greater value to their shareholders, clients, and employees.
Key Financial Highlights
- - Total Assets: Old Point's total assets stood at $1.5 billion as of March 31, 2025, with a nominal increase of $418 thousand from the previous quarter. The total deposit figure rose by $2.6 million, signifying a 0.2% growth. Moreover, net loans held for investment increased to $1.0 billion, marking a 0.2% rise.
- - Return Metrics: The return on average equity (ROE) was recorded at 7.50% for the first quarter, which shows a decline from 9.96% in the previous quarter but an improvement from 6.44% from the same quarter last year. Meanwhile, the return on average assets (ROA) was documented at 0.61%, down from 0.77% in the prior quarter and higher than 0.48% a year prior.
- - Credit Quality: There was a notable increase in non-performing assets, totaling $4.2 million, which rose significantly by 53.9% from the previous quarter. Nevertheless, management maintains that the credit quality remains robust, and the allowance for credit losses should adequately cover anticipated losses within the loan portfolio.
Looking Ahead
The first quarter results signify both challenges and opportunities for Old Point as it looks to embark on a new phase of growth in collaboration with TowneBank. The management is prepared to navigate the road ahead with a focus on effective execution of their merger strategy while maintaining a commitment to their operational excellence and service delivery.
For further details about the merger and financial measures that are not derived following GAAP standards, stakeholders are encouraged to keep an eye on forthcoming announcements and reports.
In conclusion, while Old Point's earnings indicated a decline in net income from the previous quarter, the company remains committed to its growth strategy and is poised to leverage its merger with TowneBank to strengthen its market position and create long-term value.
Topics Financial Services & Investing）
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