Old Point Releases First Quarter 2013 Results

·Net income before securities gains increases $30 thousand

·Noninterest expense decreases $325 thousand

·Low-cost deposits increase $4.8 million

May 7, 2013 Hampton, VA                                                                Old Point Financial Corporation (NASDAQ "OPOF") posted a profit of $901 thousand, or $0.18 per diluted share for the quarter ended March 31, 2013, compared to after tax income before securities gains of $871 thousand for the same period of 2012. There were no securities gains in the first quarter of 2013. Lower noninterest expense contributed to improved profitability in the first quarter of 2013 over the first quarter of 2012. Old Point has invested more funds in tax-exempt securities during the last twelve months, which has reduced its federal tax liability.

Noninterest income in areas other than securities gains was higher in the first quarter of 2013 than in the first quarter of 2012. Income from fiduciary activities increased $73 thousand, or 8.83%. Most account fees are tied to the market value of account assets; improvement in the equities market yielded higher fee income to Trust. Income from other service charges, commissions and fees also increased, due to increases in merchant processing and securities brokerage income. Old Point has been focusing on diversifying noninterest income in response to declining interest income and new regulatory restrictions on some sources of noninterest income.

Most categories of noninterest expense decreased between the first quarters of 2012 and 2013. The largest decreases were in losses on sales of foreclosed assets, FDIC insurance premiums, and legal and audit expenses. As the economy generally improved over the past year, Old Point’s nonperforming assets declined, which also reduced expenses related to these assets. Although it did not directly affect net income for the quarter, the reduction in net loan charge-offs between the two quarters is another indication that Old Point’s asset quality is continuing to improve. Net loans charged off in the first quarter of 2013 were $265 thousand, 56.63% lower than charge-offs for the first quarter of 2012.

Assets as of March 31, 2013 were $890.8 million, a decrease of $16.7 million, or 1.84%, compared to assets as of December 31, 2012. Due to the lack of quality loan demand in recent years, Old Point’s loan portfolio has declined. To manage its net interest margin, Old Point has focused on low-cost deposits rather than higher cost time accounts. High-cost time deposits decreased $11.4 million in the first quarter of 2013, while low-cost funds increased $4.8 million. Until loan demand recovers, Old Point will likely continue to manage the interest margin by allowing higher cost funds to decrease.

As a community bank, we believe that to succeed, the community around us must thrive. Old Point National Bank supports more than 300 organizations through sponsorships and charitable donations. Approximately 36% of our giving is earmarked for education, 29% for community development, 19% for arts & culture, and 16% for health & wellness. Additionally in the first quarter of 2013, Old Point National Bank was awarded with the following accomplishments: Inside Business’ Best Place to Work in Hampton Roads Hall of Fame, Virginian Pilot’s Best of 2013 - Bank Winner, Hampton Roads Magazine’s Best Local Bank. Also, Melissa Burroughs, Executive Vice President and Chief Lending Officer, was named one of Virginia Lawyers Weekly’s Influential Women of Virginia. In addition, Old Point received an outstanding rating from the OCC during our Community Reinvestment Act performance evaluation. For more information about our commitment to the community, pick up a copy of Old Point’s Community Engagement Report in any of our branches or request a PDF via email (lwright@oldpoint.com). For information about upcoming initiatives, please visit our website (www.oldpoint.com), our Facebook page (www.facebook.com/oldpoint), or join us on Twitter (www.twitter.com/opnb).

Other items of note:

Net interest margin (NIM) for the first quarter of 2013 was 3.19%, compared to 3.59% for the first quarter of 2012.

Non-Performing Assets (NPAs) as of March 31, 2013 were $16.1 million, down from $17.7 million on December 31, 2012. These numbers do not include restructured loans that are performing in accordance with their modified terms.

Allowance for Loan and Lease Losses (ALLL) as of March 31, 2013 was 1.59% of total loans; as of December 31, 2012, that measure was 1.55%.

Net loans charged off as a percent of total loans were 0.23% on an annualized basis for the quarter ended March 31, 2013, compared to 0.50% in for the same period in 2012.

Safe Harbor Statement Regarding Forward-Looking Statements. Statements in this press release which express “belief,” “intention,” “expectation,” and similar expressions, identify forward-looking statements. These forward-looking statements are based on the beliefs of the corporation's management, as well as estimates and assumptions made by, and information currently available to, the corporation's management. These statements are inherently uncertain, and there can be no assurance that the underlying estimates or assumptions will prove to be accurate. Actual results could differ materially from historical results or those anticipated by such statements. Factors that could have a material adverse effect on the operations and future prospects of the corporation include, but are not limited to, changes in: interest rates; general economic and business conditions, including unemployment levels; demand for loan products; the legislative/regulatory climate; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of the loan or investment portfolios; the level of net charge-offs on loans; deposit flows; competition; demand for financial services in the corporation’s market area; technology; reliance on third parties for key services; the real estate market; the corporation’s expansion initiatives; accounting principles, policies and guidelines; and other factors detailed in the corporation's publicly filed documents, including its Annual Report on Form 10-K for the year ended December 31, 2012. These risks and uncertainties should be considered in evaluating the forward-looking statements contained herein, and readers are cautioned not to place undue reliance on such statements, which speak only as of date of the release.

Non-GAAP Financial Measure. The financial measure income before securities gains is determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). This non-GAAP financial measure should not be viewed as a substitute for operating results determined in accordance with GAAP. An item which management excludes when computing non-GAAP performance measures can be of substantial importance to the corporation’s results for any particular quarter or year. The corporation’s non-GAAP performance measure is not necessarily comparable to non-GAAP performance measures which may be presented by other companies. Management believes that income before securities gains provides useful information regarding results of core operations of Old Point Financial Corporation.

Old Point Financial Corporation ("OPOF" - Nasdaq)is theparent company of The Old Point National Bank of Phoebus, a locally owned and managed community bank serving all of Hampton Roads and Old Point Trust & Financial Services, N.A., aHampton Roads wealth management services provider. Web: www.oldpoint.com. For more information, contact Erin Black, Vice President/Marketing Director, Old Point National Bank at 757- 251-2792.

Old Point Financial Corporation and Subsidiaries
Consolidated Balance Sheet
(dollars in thousands, except share data)	March 31,			December 31,
	2013			2012
	(unaudited)
Assets
Cash and due from banks	$	14,573		$	15,982
Interest-bearing due from banks		29,153			24,732
Federal funds sold		1,229			1,603
Cash and cash equivalents		44,955			42,317
Securities available-for-sale, at fair value		321,645			329,456
Securities held-to-maturity (fair value approximates $573 and $574)		570			570
Restricted securities		2,378			2,562
Loans, net of allowance for loan losses of $7,259 and $7,324		450,251			463,809
Premises and equipment, net		34,059			32,528
Bank owned life insurance		22,040			21,824
Foreclosed assets, net of valuation allowance of $1,756 and $1,870		6,021			6,574
Other assets		8,920			7,859
Total assets	$	890,839		$	907,499
Liabilities & Stockholders' Equity
Deposits:
Noninterest-bearing deposits	$	176,862		$	176,740
Savings deposits		272,964			268,253
Time deposits		297,415			308,823
Total deposits		747,241			753,816
Overnight repurchase agreements		26,339			35,946
Term repurchase agreements		1,281			1,280
Federal Home Loan Bank advances		25,000			25,000
Accrued expenses and other liabilities		2,751			2,157
Total liabilities		802,612			818,199
Commitments and contingencies
Stockholders' equity:
Common stock, $5 par value, 10,000,000 shares authorized;
4,959,009 and 4,959,009 shares issued and outstanding		24,795			24,795
Additional paid-in capital		16,392			16,392
Retained earnings		48,958			48,305
Accumulated other comprehensive income (loss)		(1,918	)		(192	)
Total stockholders' equity		88,227			89,300
Total liabilities and stockholders' equity	$	890,839		$	907,499

Old Point Financial Corporation and Subsidiaries
Consolidated Statements of Income
(dollars in thousands, except per share data)	Three Months Ended
	March 31,
	2013		2012
	(unaudited)
Interest and Dividend Income:
Interest and fees on loans	$	6,008	$	7,069
Interest on due from banks		14		16
Interest on federal funds sold		0		0
Interest on securities:
Taxable		1,324		1,222
Tax-exempt		265		94
Dividends and interest on all other securities		18		21
Total interest and dividend income		7,629		8,422
Interest Expense:
Interest on savings deposits		87		94
Interest on time deposits		862		976
Interest on federal funds purchased, securities sold under
agreements to repurchase and other borrowings		4		16
Interest on Federal Home Loan Bank advances		302		425
Total interest expense		1,255		1,511
Net interest income		6,374		6,911
Provision for loan losses		200		200
Net interest income, after provision for loan losses		6,174		6,711
Noninterest Income:
Income from fiduciary activities		900		827
Service charges on deposit accounts		997		1,030
Other service charges, commissions and fees		859		797
Income from bank-owned life insurance		215		224
Gain on sale of available-for-sale securities, net		0		314
Other operating income		142		76
Total noninterest income		3,113		3,268
Noninterest Expense:
Salaries and employee benefits		4,921		4,960
Occupancy and equipment		1,112		1,094
Data processing		422		383
FDIC insurance		183		281
Customer development		206		204
Legal and audit expense		111		184
Other outside service fees		96		152
Employee professional development		132		142
Postage and courier expense		123		124
Advertising		123		145
Stationery and supplies		120		105
Loss on write-down/sale of foreclosed assets		126		257
Other operating expense		550		519
Total noninterest expense		8,225		8,550
Income before income taxes		1,062		1,429
Income tax expense		161		351
Net income	$	901	$	1,078
Basic Earnings per Share:
Average shares outstanding		4,959,009		4,959,009
Net income per share of common stock	$	0.18	$	0.22
Diluted Earnings per Share:
Average shares outstanding		4,959,009		4,959,009
Net income per share of common stock	$	0.18	$	0.22
Cash Dividends Declared	$	0.05	$	0.05

Old Point Financial Corporation and Subsidiaries
Selected Ratios	March 31,			December 31,			March 31,
	2013			2012			2012
Net Interest Margin Year-to-Date		3.19	%		3.40	%		3.59	%
NPAs/Total Assets		1.81	%		1.95	%		2.45	%
Annualized Net Charge Offs/Total Loans		0.23	%		0.76	%		0.50	%
Allowance for Loan Losses/Total Loans		1.59	%		1.55	%		1.65	%
Non-Performing Assets (NPAs) (in thousands)
Nonaccrual Loans	$	9,988		$	10,632		$	13,769
Loans > 90 days past due, but still accruing interest		130			447			79
Non-Performing Restructured Loans		0			0			0
Foreclosed Assets		6,021			6,574			7,439
Total Non-Performing Assets	$	16,139		$	17,653		$	21,287
Other Selected Numbers (in thousands)
Loans Charged Off Year-to-Date, net of recoveries	$	265		$	3,574		$	611
Year-to-Date Average Loans	$	463,268		$	478,220		$	495,619
Year-to-Date Average Assets	$	893,373		$	869,436		$	850,069
Year-to-Date Average Earning Assets	$	818,008		$	801,012		$	777,856
Year-to-Date Average Deposits	$	744,549		$	718,802		$	694,049
Year-to-Date Average Equity	$	88,530		$	87,912		$	86,358