Old Point Financial Corp. (OPOF, Financial) filed Quarterly Report for the period ended 2012-06-30.
Old Point Financial Corporation has a market cap of $52.8 million; its shares were traded at around $10.53 with a P/E ratio of 14.6 and P/S ratio of 1.1. The dividend yield of Old Point Financial Corporation stocks is 1.9%.
The principal source of earnings for the Company is net interest income. Net interest income is the difference between interest and fees generated by earning assets and interest expense paid to fund them. Changes in the volume and mix of interest-earning assets and interest-bearing liabilities, as well as their respective yields and rates, have a significant impact on the level of net interest income. The net interest yield is calculated by dividing tax-equivalent net interest income by average earning assets. Although both total interest and dividend income and total interest expense decreased during the three and six months ended June 30, 2012, as compared to the same periods in 2011, total interest and dividend income decreased more than total interest expense, causing net interest income to decrease for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011.
Tax-equivalent interest income decreased by $785 thousand in the second quarter of 2012 and $1.7 million in the first six months of 2012, compared to the same periods of 2011. Average earning assets for the second quarter of 2012 increased $18.7 million and decreased $4.0 million for the first six months of 2012 compared to the same periods in 2011. Interest expense decreased for the second quarter and first six months of 2012 as compared to those periods in 2011. The decrease in interest expense is primarily a result of a decrease in average interest-bearing liabilities as well as 12 and 13 basis-point decreases in the average rate on interest-bearing liabilities in the second quarter and first six months of 2012, respectively, compared to the same periods in 2011.
Noninterest income improved in other areas as well, with the largest increases in income from fiduciary activities and in other service charges, commissions and fees. Income from fiduciary activities increased $33 thousand for the second quarter of 2012 and $89 thousand for the first six months of 2012, as compared to the same periods in 2011. During the past year, Trust opened new accounts and expanded service offerings to existing customers, including an improved 401(k) product. A portion of the increase in income from fiduciary activities was from a nonrecurring event related to a new customer, but management anticipates that income from fiduciary activities will continue to increase as sales efforts for the 401(k) daily valuation product are beginning to be effective. Other service charges, commissions and fees grew $60 thousand and $119 thousand for the second quarter and first six months of 2012, respectively, over the same periods in 2011. The increases in other service charges, commissions and fees were due to increased revenues from merchant processing services and investment brokerage services. The Company has been focusing on diversifying noninterest income in response to declining interest income and new regulatory restrictions on some sources of noninterest income.
Read the The complete Report
Old Point Financial Corporation has a market cap of $52.8 million; its shares were traded at around $10.53 with a P/E ratio of 14.6 and P/S ratio of 1.1. The dividend yield of Old Point Financial Corporation stocks is 1.9%.
Highlight of Business Operations:
Net income for the six months ended June 30, 2012 was $1.7 million, or $0.35 per diluted share, an increase of $337 thousand over the same period in 2011. The increase in net income was primarily due to a reduction in the provision for loan losses, from $2.3 million to $1.2 million when comparing the first six months of 2011 to the first six months of 2012. Decreases in loans and in the allocation for the qualitative factors in the allowance for loan losses between the two periods allowed management to reduce the provision. Gains on sales of available-for-sale securities also contributed significantly to the increase in net income between the two periods, as the Company has restructured the investment portfolio in 2012 by selling government agency securities and reinvesting the proceeds in mortgage-backed securities.The principal source of earnings for the Company is net interest income. Net interest income is the difference between interest and fees generated by earning assets and interest expense paid to fund them. Changes in the volume and mix of interest-earning assets and interest-bearing liabilities, as well as their respective yields and rates, have a significant impact on the level of net interest income. The net interest yield is calculated by dividing tax-equivalent net interest income by average earning assets. Although both total interest and dividend income and total interest expense decreased during the three and six months ended June 30, 2012, as compared to the same periods in 2011, total interest and dividend income decreased more than total interest expense, causing net interest income to decrease for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011.
Tax-equivalent interest income decreased by $785 thousand in the second quarter of 2012 and $1.7 million in the first six months of 2012, compared to the same periods of 2011. Average earning assets for the second quarter of 2012 increased $18.7 million and decreased $4.0 million for the first six months of 2012 compared to the same periods in 2011. Interest expense decreased for the second quarter and first six months of 2012 as compared to those periods in 2011. The decrease in interest expense is primarily a result of a decrease in average interest-bearing liabilities as well as 12 and 13 basis-point decreases in the average rate on interest-bearing liabilities in the second quarter and first six months of 2012, respectively, compared to the same periods in 2011.
Noninterest income improved in other areas as well, with the largest increases in income from fiduciary activities and in other service charges, commissions and fees. Income from fiduciary activities increased $33 thousand for the second quarter of 2012 and $89 thousand for the first six months of 2012, as compared to the same periods in 2011. During the past year, Trust opened new accounts and expanded service offerings to existing customers, including an improved 401(k) product. A portion of the increase in income from fiduciary activities was from a nonrecurring event related to a new customer, but management anticipates that income from fiduciary activities will continue to increase as sales efforts for the 401(k) daily valuation product are beginning to be effective. Other service charges, commissions and fees grew $60 thousand and $119 thousand for the second quarter and first six months of 2012, respectively, over the same periods in 2011. The increases in other service charges, commissions and fees were due to increased revenues from merchant processing services and investment brokerage services. The Company has been focusing on diversifying noninterest income in response to declining interest income and new regulatory restrictions on some sources of noninterest income.
Read the The complete Report
