EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO

OLD POINT FINANCIAL CORPORATION ANNOUNCES EARNINGS

 

   

Third quarter 2007 net income up 15.7%

 

   

Nine months’ earnings up 13.8%

October 16, 2007, Hampton, VA Old Point Financial Corporation (Nasdaq “OPOF”) announced today net income of $2.0 million, or $0.50 per diluted share, for the quarter ended September 30, 2007, up $269 thousand, or 15.7% from the third quarter of 2006. Results for the nine months ended September 30, 2007 were $5.9 million in net income, or $1.48 per diluted share, up 13.8% from $5.2 million reported for the first nine months of 2006. Assets as of September 30, 2007 totaled $827.6 million, $4.4 million higher than September 30, 2006 assets of $823.1 million. Net loans grew to $581.9 million, a 2.3% increase over 2006 total net loans of $568.8 million. Deposits for the period increased to $600.7 million, or up 5.5% over September 30, 2006 deposits of $569.2 million. Dividends declared for 2007 year-to-date have been $0.56 per share, up $0.04, or 7.7% from year-to-date 2006. Return on Average Assets (ROA) for year-to-date 2007 is 0.96%, and Return on Average Equity (ROE) is 10.28%.

“During 2007, we have continued to use maturing investments to pay down our Federal Home Loan Bank (FHLB) advances,” said Robert F. Shuford, President, Chairman and CEO of Old Point Financial Corporation. “We have reduced our FHLB advances outstanding by $25 million over the past year, and our asset quality remains good.”

Since embarking on a stock buy-back program in 2005, Old Point Financial Corporation has bought back more than 112,000 shares of the Company stock. “This is good for our stockholders,” said Robert F. Shuford, “It increases our Return on Equity and sends a positive message to the investment community because it shows management’s faith in the ability of the Corporation to produce growth and future earnings.” There were approximately 3.9 million shares of Old Point stock outstanding as of September 30. A 25% stock dividend that took effect on October 1, 2007 increases the number outstanding to approximately 4.9 million.

 

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Other items of note for the third quarter of 2007:

Net interest income after provision for loan losses was $6.3 million, up 6.9% or $410 thousand over the third quarter in 2006. For the first nine months of 2007, net interest income after provision for loan losses totaled $18.5 million, up $1.1 million, or 6.6%, over the nine months ended September 30, 2006.

Total non interest income for the third quarter was $3 million, up 11.9% or $323 thousand higher than the comparable quarter of 2006. For the first nine months of 2007, noninterest income was $9.2 million, up 8.5%, or $721 thousand over the first nine months of 2006.

Noninterest expenses increased by $297 thousand on a quarter-to-quarter comparison, or 4.7%, and $709 thousand, or 3.8%, on a year-to-year basis.

Net Interest Margin (NIM) for the third quarter of 2007 was 3.49%, as compared with 3.37% for the three months ended September 30, 2006. For the nine months ending September 30, 2007 NIM was 3.40%, and 3.43% for the first nine months of 2006.

Non-Performing Assets: Non-performing Assets (NPAs) as a percentage of total assets were at .30% as of September 30, 2007 as compared with .38% at the end of the second quarter in 2007, and .18% in the third quarter of 2006. NPAs as of September 30, 2007 consisted of $282 thousand in nonperforming loans, $735 thousand in loans 90 days or more past due but still accruing interest, $1.3 million in restructured debt, and $165 thousand in a former branch site. The $1.3 million in restructured debt is current and paying as agreed. Without the restructured debt, NPAs as a percentage of total assets would be .14%.

Old Point Financial Corporation (“OPOF”—Nasdaq) is the parent company of Old Point National Bank, a locally owned and managed community bank serving Hampton Roads with a 19-branch network extending from Chesapeake through James City County, and Old Point Trust & Financial Services, N.A., a Hampton Roads wealth management services provider. Web: www.oldpoint.com

For more information contact: Lani Chisman Davis, Marketing Director, 757/ 728-1286

 

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Unaudited

Old Point Financial Corporation

Consolidated Balance Sheets

(in thousands, except per share data)

 

                      30-Sep-07     30-Sep-06  
Assets              

Cash and due from banks

     $ 14,266     $ 14,331  

Federal Funds Sold

       38,183       4,409  

Cash & Cash Equivalents

       52,449       18,740  

Investments:

             

Securities available for sale, at fair value

       143,113       186,763  

Securities held to maturity (fair value approximates $3,671 and $3,449)

       3,632       3,423  

Loans net of allowance for loan losses of $5,133 & $4,625

       581,871       568,807  

Premises and equipment, net

       26,665       26,496  

Bank owned life insurance

     12,633       10,466  

Other Assets

              7,215       8,443  
                         

Total Assets

            $ 827,578     $ 823,138  
                         

Liabilities

             

Deposits:

             

Noninterest-bearing deposits

   $ 96,997     $ 101,292  

Savings deposits

     189,949       195,454  

Time Deposits

              313,752       272,495  
                         

Total Deposits

              600,698       569,241  

Federal funds purchased, repurchase agreements and other borrowings

     55,405       62,408  

Federal Home Loan Bank Advances

     90,000       115,000  

Accrued expenses and other liabilities

     3,357       2,939  

Total Liabilities

              749,460       749,588  

Stockholders’ Equity

    

Common stock, $5.00 par value

     19,723       19,961  
    2007    2006                     

Shares Authorized

  10,000,000    10,000,000         

Shares Issued

  3,944,711    3,992,155         

Additional paid-in capital

     15,297       14,719  

Retained earnings

     44,095       41,147  

Accumulated other comprehensive loss

     (997 )     (2,277 )
                         

Total stockholders’ equity

     78,118       73,550  
                         

Total liabilities and stockholders’ equity

   $ 827,578     $ 823,138  
                         

 

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Unaudited

Old Point Financial Corporation

Consolidated Statements of Income

(in thousands, except per share data)

 

      3 Months Ended    3 Months Ended    9 Months Ended    9 Months Ended
     30-Sep-07    30-Sep-06    30-Sep-07    30-Sep-06

Interest and Dividend Income

           

Interest and fees on loans

   $ 10,654    $ 9,822    $ 31,361    $ 27,126

Interest on federal funds sold

     347      102      644      235

Interest on securities

           

Taxable

     1,009      1,276      3,384      3,842

Tax exempt

     306      350      953      1,105

Dividends and interest on all other securities

     102      113      323      292
                           

Total interest income

     12,418      11,663      36,665      32,600
Interest Expense            

Interest on savings deposits

     630      608      1,924      1,673

Interest on time deposits

     3,599      2,937      10,254      7,742

Interest on federal funds purchased, securities sold under agreement to repurchase and other borrowings

     490      496      1,467      1,369

Interest on FHLB advances

     1,172      1,405      3,807      3,543
                           

Total Interest expense

     5,891      5,446      17,452      14,327

Net interest income

     6,527      6,217      19,213      18,273

Provision for loan losses

     200      300      700      900
                           

Net interest income after provision for loan losses

     6,327      5,917      18,513      17,373

Noninterest Income

           

Income from fiduciary activities

     767      653      2,347      1,992

Service charges on deposit accounts

     1,388      1,338      4,231      4,064

Other service charges, commissions and fees

     609      462      1,776      1,715

Income from bank owned life insurance

     159      140      455      407

Gain on available-for-sale securities, net

     0      5      3      7

Other operating income

     113      115      435      341
                           

Total noninterest income

     3,036      2,713      9,247      8,526

Other Expenses

           

Salaries and employee benefits

     3,982      3,830      11,924      11,367

Occupancy and equipment

     928      861      2,716      2,639

Service fees

     94      174      260      543

Data processing

     223      195      647      551

Marketing

     188      168      564      499

Customer development

     177      171      516      465

Employee professional development

     175      171      500      462

Other operating expenses

     818      718      2,356      2,248

Total noninterest expenses

     6,585      6,288      19,483      18,774
                           

Income before income taxes

     2,778      2,342      8,277      7,125

Income tax expense

     798      631      2,353      1,918
                           

Net Income

     1,980      1,711      5,924      5,207
                           

Basic Earnings per Share

           

Average shares outstanding

     3,951,415      3,992,082      3,977,427      3,991,905

Net income per share of common stock

   $ 0.50    $ 0.43    $ 1.49    $ 1.30

Diluted Earnings per share

           

Average shares outstanding

     3,979,420      4,047,316      4,011,885      4,050,926

Net income per share of common stock

   $ 0.50    $ 0.42    $ 1.48    $ 1.29

Cash Dividends Declared

   $ 0.20    $ 0.18    $ 0.56    $ 0.52

 

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Selected Ratios

 

     3 Months Ended     3 Months Ended     9 Months Ended     9 Months Ended  
     30-Sep-07     30-Sep-06     30-Sep-07     30-Sep-06  

Net Interest Margin

     3.49 %     3.37 %   3.40 %   3.43 %
     9 Months Ended     9 Months Ended        
     30-Sep-07     30-Sep-06    
NPAs/Total Assets      0.30 %     0.18 %  
Net Charge Offs/Total Loans      0.06 %     0.13 %  
Allowance for Loan Losses/Total Loans      0.87 %     0.81 %  

Non-Performing Assets (NPAs)

   $ 2,505     $ 1,453    

Composition of NPAs(000):

      

Nonperfoming Loans

   $ 282     $ 158    

Loans > 90 days past due, but still accruing interest

   $ 735     $ 1,130    

Restructured Loans

   $ 1,323     $ 0    

Other Real Estate Owned

   $ 165     $ 165    

 

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