Old Point Financial Corporation Reports Q2 2025 Financial Results and Prepares for TowneBank Merger

Old Point Financial Corporation's Q2 2025 Results

On July 30, 2025, Old Point Financial Corporation (NASDAQ: OPOF) announced its financial results for the second quarter of 2025. The corporation reported a net income of $1.2 million, translating to diluted earnings per share of $0.24. This marks a decrease from the $2.2 million net income reported for the first quarter of 2025 and the $2.5 million recorded in the same period last year.

For the first six months of 2025, net income reached $3.4 million, with diluted earnings per share at $0.67, showing a decline compared to $4.2 million or $0.84 per share for the first half of 2024. Adjusted operating earnings for the second quarter stood at $2.2 million or $0.43 per diluted share, down from $2.5 million or $0.50 per share from the same quarter in 2024.

Amid these financial shifts, Chairman and CEO Robert F. Shuford, Jr. emphasized the company's continued effort to optimize its deposit mix, leading to notable improvements in its net interest margin (NIM), which was reported at 3.70% for Q2 2025. This figure represents an increase from 3.63% in the previous quarter and 3.62% in the same quarter of 2024.

One of the most significant developments announced was the proposed merger with TowneBank, which has been approved by Old Point’s shareholders. The merger agreement stipulates that Old Point Financial Corporation will merge with TowneBank, with TowneBank continuing as the surviving entity, pending regulatory approval. Shuford noted the dedication to working closely with TowneBank’s team to ensure a smooth transition that will benefit shareholders, customers, and employees alike.

The company reported total assets of $1.4 billion as of June 30, 2025, a decline of $48 million, or 3.3%, since December 31, 2024. Net loans for investment decreased slightly to $994.3 million, while total deposits fell by $46.2 million, or 3.7%. Despite these decreases, liquidity remained strong at $455.7 million, equivalent to 32.5% of total assets.

Non-performing assets saw a significant drop of 19.7% since Q1 2025, totaling $3.3 million, representing 0.24% of total assets as of June 30, 2025. This improvement in asset quality demonstrates the effective management strategies the company has implemented.

In terms of operational expenses, Old Point’s noninterest expenses increased to $13.4 million in Q2 2025, attributed mainly to rising merger-related costs and salaries. Notably, the company maintained a dividend payout of $0.14 per share for the quarter, reflecting its commitment to shareholder returns despite the challenging financial landscape.

Looking ahead, Old Point remains optimistic about the merger with TowneBank, which is expected to provide a stronger platform for growth and enhanced value for stakeholders. The company’s diligent management of its deposit base, loan portfolio, and continued focus on operational efficiency positions it for future resilience and success in the evolving banking sector.

For further financial details and third-party analysis, stakeholders are encouraged to consult the company's latest report and keep abreast of updates regarding the merger with TowneBank.