Old Point Releases First Quarter 2023 Results.

HAMPTON, Va: Old Point Financial Corporation (the Company or Old Point) (NASDAQ "OPOF") reported net income of $3.1 million and earnings per diluted common share of $0.62 for the first quarter of 2023 compared to net income of $2.0 million and earnings per diluted common share of $0.39 for the first quarter of 2022.

Robert Shuford, Jr., Chairman, President and CEO of the Company and Old Point National Bank (the Bank) said, "Old Point's first quarter results reflect our consistent and traditional banking franchise and the strength of our balance sheet. During a period characterized by heightened market volatility, we maintained strong asset quality, increased our capital position, and grew loans and deposits. We continued to generate strong earnings in the first quarter of 2023, although NIM began to tighten due to the current interest rate environment and our funding needs. Deposit costs, while rising, continue to show the benefits of our strong deposit base which is very seasoned and diversified. During our 100th anniversary year, Old Point remains focused on serving the needs of our community and customers, maintaining asset quality, capital levels, and liquidity sources, while carefully identifying opportunities that align with our forward-looking strategies."

Highlights of the first quarter are as follows:

Net loans held for investment grew $53.2 million, or 5.2%, from December 31, 2022. Loans held for investment, (net of deferred fees and costs), excluding PPP (non-GAAP), grew $54.2 million, or 5.3%, from December 31, 2022 and $233.1 million, or 27.5%, from March 31, 2022.

Total deposits increased $43.6 million, or 3.8%, from December 31, 2022.

Return on average equity (ROE) increased to 12.5% for the first quarter of 2023, compared to 11.0% for the fourth quarter of 2022, and 7.0% for the prior year quarter.

Net income improved $440 thousand, or 16.7%, to $3.1 million for the first quarter of 2023 from $2.6 million for the fourth quarter of 2022, and $1.1 million, or 51.8%, from $2.0 million in the 2022 comparative quarter.

Net interest margin (NIM) was 4.02% in the first quarter of 2023, compared to 4.14% in the fourth quarter of 2022 and 3.14% in the first quarter of 2022. NIM on a fully tax-equivalent basis (FTE) (non-GAAP) was 4.04% in the first quarter of 2022, 4.17% in the linked quarter and 3.16% in the first quarter of 2022.

Net interest income for the first quarter of 2023, decreased $96 thousand, or 0.7%, compared to the prior quarter and increased $3.2 million, or 33.0%, compared to the first quarter of 2022.

Provision for credit losses of $376 thousand was recognized for the first quarter of 2023, compared to $633 thousand for the fourth quarter of 2022 and $101 thousand for the first quarter of 2022.

Noninterest expense decreased $119 thousand, or 1.0%, to $12.2 million for the first quarter of 2023, compared to $12.3 million for the fourth quarter of 2022 but increased $1.5 million, or 13.6%, from the first quarter...