Old Point reports lower second-quarter earnings
- July 30, 2012
Hampton -based Old Point Financial Corp. reported that its second-quarter net income declined nearly 40 percent .
The bank had a profit of $638,000, or 13 cents per diluted share, compared with net income of $1 million for the second quarter of 2011. Net income declined $397,000 because of a higher provision for loan losses, a decline in net interest income and higher noninterest expenses, which were partially mitigated by higher noninterest income.
For the first six months of the year, however, the bank posted a profit of $1.7 million, or 35 cents per diluted share, an increase of $337,000 over the same period in 2011.
The increase in net income was 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 and 2012. Decreases in loans and in nonperforming assets between the two periods allowed management to reduce the provision. Sales of available-for-sale securities also contributed significantly to the increase in net income between the two periods.
On June 30, 2012, nonperforming assets were 17.75 percent lower than on June 30, 2011. Nonperforming assets declined primarily due to a $3.6 million decline in foreclosed assets. Net loans charged off in the first half of 2012 totaled $2 million, compared to $5.6 million in the first half of 2011. Between June 30, 2011 and June 30, 2012, average loans declined $74.0 million, allowing management to set aside less money through the provision for loan losses.
Assets as of June 30, 2012 were $872.3 million, an increase of $22.8 million, or 2.69 percent, compared to assets as of Dec. 31.