While Hampton-based Old Point is seeing profit improvement this year, the bank reported on Thursday it would close its downtown Norfolk branch in September amid continued cost-cutting efforts.
Old Point National Bank Chairman, President and CEO Robert Shuford Jr. said in a second-quarter report the bank would close its Crown Center branch at 580 E. Main St. on Sept. 27. The bank has a branch on Granby Street in Ghent.
“This is not a decision we made lightly and we remain dedicated to serving customers in the community by providing banking services through our other nearby branches, online and mobile banking, and customer support center,” Shuford said.
Old Point started efforts to reduce expenses in late 2023 amid inflationary pressures and economic conditions increasing the cost of doing business, Shuford previously reported. The bank had reported the decision to reduce its employee headcount by about 12% in the first half of the year.
Last year, Old Point’s net income was $7.7 million, down from $9.1 million in 2022, according to its annual report.
In January, the company announced the transition of mortgage loan processing to Chesapeake-based Tidewater Home Funding as part of a strategic alliance that would continue Old Point Mortgage branding. That decision was related to both rising interest rates and expense control.
Still, Shuford reported Thursday the company’s net income was the highest it has been in five quarters at $2.5 million. While loan growth slowed as expected, he said core deposit growth was stronger than anticipated. As of June 30, Old Point reported total assets of $1.4 billion and total deposits of $1.2 billion.
“We approach the second half of 2024 with continued optimism given the strength of our company, driven by an outstanding team of employees,” Shuford said. “I remain fully confident about the ability of our team to drive value for our customers, our communities, and our shareholders.”
