Old Point Financial Corporation (OPOF)

History and Background

Old Point Financial Corporation was founded in 1923 in Phoebus, Virginia. It has grown organically and through acquisitions, becoming a community bank focused on serving the Hampton Roads region of Virginia.

Core Business Areas

• Commercial Banking: Provides a range of banking services to businesses, including loans, deposit accounts, and treasury management services.
• Retail Banking: Offers banking services to individuals, including checking and savings accounts, mortgages, and consumer loans.
• Wealth Management: Provides wealth management and trust services to individuals and families.

Leadership and Structure

Robert F. Shuford, Jr. serves as the President and CEO. The company operates with a traditional corporate structure, with a board of directors and executive management team.

Key Offerings

• Commercial Loans: Offerings include commercial real estate loans, business term loans, and lines of credit. Market share data is difficult to pinpoint exactly for Old Point specifically due to the regional nature of its business but based on total asset market share within the state of Virginia it would be less than 1%. Competitors include larger regional and national banks such as Truist, Bank of America, and Wells Fargo, as well as other community banks in the Hampton Roads area.
• Mortgages: Offers residential mortgage loans. Market share, similar to commercial loans, is challenging to pinpoint precisely. Competitors include national mortgage lenders like Rocket Mortgage and local credit unions, as well as other community banks.
• Deposit Accounts: Offerings include checking, savings, and money market accounts for consumers and businesses. The company does not break out the revenue specifically for this product. Competitors include digital banks such as Ally Bank and Capital One 360 as well as brick and mortar Banks.

Industry Overview

The banking industry is currently facing challenges related to interest rate volatility, increased regulatory scrutiny, and competition from fintech companies. Consolidation within the industry is also a notable trend.

Positioning

Old Point Financial Corporation is positioned as a community bank focused on building relationships with local customers and businesses. Its competitive advantage lies in its personalized service and local market knowledge.

Total Addressable Market (TAM)

The TAM for community banking in the Hampton Roads region is estimated to be in the billions of dollars. Old Point Financial Corporation's position within this TAM is relatively small, but it has opportunities to grow its market share through strategic initiatives and acquisitions.

Key Competitors

• Truist (TFC)
• Bank of America (BAC)
• Wells Fargo (WFC)

Competitive Landscape

Old Point Financial Corporation faces significant competition from larger regional and national banks. Its advantage lies in its local focus and personalized service, but it needs to invest in technology and expand its market reach to remain competitive.

Citizens National Bank

• Year: 2016
• Acquisition Price (USD millions): 13.8
• Strategic Rationale: Expanded Old Point's presence into the Middle Peninsula region.

Historical Growth: Old Point Financial Corporation's historical growth has been steady, driven by organic growth and acquisitions.

Future Projections: Analyst estimates for future growth will vary. Look for estimates on revenue, earnings, and loan growth.

Recent Initiatives: Recent initiatives should be monitored to assess their impact on the company's growth prospects. These might include new branch openings, digital banking enhancements, or acquisition strategies.

Old Point Financial Corporation is a community bank with deep roots in the Hampton Roads region. Its strengths include a strong local brand and established customer relationships. However, it faces competition from larger banks and fintech companies and should seek expansion opportunities and technology investment. The company's long history and focus on community relationships position it well, but its limited scale requires strategic growth initiatives.

Data Sources:

• Company Website
• SEC Filings
• Analyst Reports
• FDIC Data

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Market share data is approximate. Actual financial results may vary.