• Old Point Financial Corporation (OPOF) has a Return on Invested Capital (ROIC) of 10.20% and a Weighted Average Cost of Capital (WACC) of 10.22%, indicating a near breakeven point in capital efficiency.
• Peoples Bancorp of North Carolina, Inc. (PEBK) demonstrates strong capital efficiency with a ROIC of 26.81% against a WACC of 13.12%, suggesting potential for growth.
• Several peers, including Ohio Valley Banc Corp. (OVBC) and Orrstown Financial Services, Inc. (ORRF), are not generating returns sufficient to cover their cost of capital, highlighting competitive pressures.

Old Point Financial Corporation (NASDAQ:OPOF) is a financial services company that provides banking and related services. It operates primarily in the United States, offering a range of financial products to individuals and businesses. In the competitive landscape, OPOF is compared with peers like Ohio Valley Banc Corp. (OVBC), Peoples Bancorp of North Carolina, Inc. (PEBK), Norwood Financial Corp. (NWFL), National Bankshares, Inc. (NKSH), and Orrstown Financial Services, Inc. (ORRF).

In evaluating OPOF's financial performance, the Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) are crucial metrics. OPOF's ROIC is 10.20%, slightly below its WACC of 10.22%, resulting in a ROIC to WACC ratio of 0.9975. This indicates that OPOF is generating returns that are nearly equal to its cost of capital, suggesting a breakeven point in capital efficiency.

Comparatively, Ohio Valley Banc Corp. (OVBC) has a ROIC of 6.00% and a WACC of 10.98%, leading to a ROIC to WACC ratio of 0.5465. This shows that OVBC is not covering its cost of capital, indicating inefficiency in capital utilization. Similarly, Norwood Financial Corp. (NWFL) and National Bankshares, Inc. (NKSH) have ROIC to WACC ratios of 0.3314 and 0.2656, respectively, further highlighting their challenges in generating sufficient returns.

On the other hand, Peoples Bancorp of North Carolina, Inc. (PEBK) demonstrates strong capital efficiency with a ROIC of 26.81% against a WACC of 13.12%, resulting in a ROIC to WACC ratio of 2.0440. This suggests that PEBK is effectively using its capital to generate returns well above its cost, indicating potential for growth and a competitive edge in the market.

Orrstown Financial Services, Inc. (ORRF) also faces challenges with a ROIC of 4.77% and a WACC of 12.37%, leading to a ROIC to WACC ratio of 0.3853. This indicates that ORRF, like several of its peers, is not generating returns sufficient to cover its cost of capital, highlighting the competitive pressures within the financial services industry.