OLD POINT FINANCIAL CORPORATION ANNOUNCES
SECOND QUARTER, 2004 EARNINGS
July 19, 2004, Hampton, VA Old Point Financial Corporation(Nasdaq “OPOF”) announced today second quarter 2004 earnings of $2.31 million, a 19% increase over the comparable quarter of 2003. Earnings for the six months ending June 30, 2004, are $4.40 million, a 13% increase over the previous year. Fully diluted net income per share for the six months ending June 30, 2004 is $1.08, up by 13% from 2003 net income of $.96 per share.
Net interest income after provision for loan losses for the quarter showed a 4% increase over the same quarter in 2003, and a 5% increase for the first six months of the year.
Non-interest income was $2.56 million for the quarter and $4.70 million for the six months ending June 30, 2004, a 34% and 27% increase over the comparable time periods in 2003. Total assets as of June 30, 2004 are $675.34 million, up 13% over June 30, 2003. Deposits increased by 9%, to $512.92 million, and Net Loans rose to $417.51 million, up by 8%.
In commenting on the earnings report, Old Point Financial Corporation President and CEO Robert F. Shuford said, "It is gratifying to be able to post these very satisfactory results for the first six months of the year. These results, coupled with the three new branches we have scheduled to open within the next nine months, make for a very active year for Old Point." Old Point National Bank recently completed the purchase of a former bank branch at 351 Independence Boulevard in the Town Center/Pembroke area of Virginia Beach, and expects branch renovations to be complete by year-end 2004. In addition, branch sites in the New Town section of Williamsburg and the Eagle Harbor area of Isle of Wight County are in the beginning stages of development and should be open during the second quarter of 2005.
Return on Average Assets (ROA) for year-to-date 2004 is 1.35%, and Return on Average Equity (ROE) is 13.56%.
Old Point Financial Corporation ("OPOF" - Nasdaq SmallCap Market) is the parent company ofOld Point National Bank, a locally owned and managed community bank serving Hampton Roads with a 16-branch network extending from Chesapeake through James City County, andOld Point Trust and 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
| Old Point Financial Corporation | |
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| Consolidated Balance Sheet | |
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| |
| Assets | 30-Jun-04 | 30-Jun-03 |
|---|
| Cash and due from banks | | | $ | 21,318 | | $ | 17,685 | |
| Federal funds sold | | | | 1,372 | | | 12,460 | |
| Cash and cash equivalents | | | | 22,690 | | | 30,145 | |
| Investments: | | |
| Securities available for sale, at market | | | | 193,490 | | | 143,738 | |
| Securities to be held to maturity | | | | 9,074 | | | 14,665 | |
| Trading account securities | | | | 0 | | | 0 | |
| Loans, net of allowance for loan losses of | | | | 417,509 | | | 386,370 | |
| $4,743 and $4,877 |
| Foreclosed assets | | | | 48 | | | 531 | |
| Premises and equipment, net | | | | 16,871 | | | 13,303 | |
| Other assets: | | | | 15,662 | | | 11,110 | |
| Total assets | | | $ | 675,344 | | $ | 599,862 | |
| Liabilities | 30-Jun-04 | 30-Jun-03 |
|---|
| Noninterest-bearing deposits | | | $ | 120,171 | | $ | 101,718 | |
| Savings deposits | | | | 180,924 | | | 161,799 | |
| Time deposits | | | | 211,829 | | | 206,601 | |
| Total deposits | | | | 512,924 | | | 470,118 | |
| Federal funds purchased and securities sold | | | | 32,998 | | | 19,144 | |
| under agreement to repurchase | | |
| Demand notes issued to the United States | | | | 2,637 | | | 6,000 | |
| Treasury |
| Federal Home Loan Bank advances | | | | 60,000 | | | 40,000 | |
| Accrued expenses and other liabilities | | | | 2,940 | | | 2,449 | |
| |
| Total Liabilities | | | | 611,499 | | | 537,711 | |
| |
| Stockholders' Equity |
| Common stock, $5.00 par value |
| 2004 2003 |
| Shares Authorized 10,000,000 10,000,000 | | |
| Shares Outstanding 3,995,872 3,964,493 | | | | 19,980 | | | 19,822 | |
| Additional paid in capital | | | | 13,369 | | | 12,097 | |
| Retained earnings | | | | 32,396 | | | 27,745 | |
| Accumulated other comprehensive income(loss) | | | | (1,900) | | | 2,487 | |
| Total stockholders' equity | | | | 63,845 | | | 62,151 | |
| |
| Total Liabilities and Stockholders' Equity | | | $ | 675,344 | | $ | 599,862 | |
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| Old Point Financial Corporation |
| Consolidated Statements of Earnings |
| Interest Income | | | | 3 Months Ended | | | 3 Months Ended | | | 6 Months Ended | | | 6 Months Ended | |
| | | | | 30-Jun-04 | | | 30-Jun-03 | | | 30-Jun-04 | | | 30-Jun-03 | |
| Interest and fees on loans | | | $ | 6,398 | | $ | 6,746 | | $ | 12,837 | | $ | 13,433 | |
| Interest on federal funds sold | | | | 19 | | | 33 | | | 62 | | | 93 | |
| Interest on securities | | |
| Taxable | | | | 1,372 | | | 1,056 | | | 2,576 | | | 2,137 | |
| Exempt from Federal income tax | | | | 476 | | | 553 | | | 971 | | | 1,120 | |
| Interest on trading account securities | | | | 0 | | | 0 | | | 0 | | | 0 | |
| Total interest income | | | | 8,265 | | | 8,388 | | | 16,446 | | | 16,783 | |
| | |
| Interest Expense | | |
| | |
| Interest on savings deposits | | | | 240 | | | 277 | | | 475 | | | 585 | |
| Interest on time deposits | | | | 1,402 | | | 1,650 | | | 2,755 | | | 3,401 | |
| Interest on federal funds purchased and | | | | 72 | | | 56 | | | 134 | | | 119 | |
| securities sold under agreement to repurchase |
| Interest on Federal Home Loan Bank advances | | | | 546 | | | 506 | | | 1,086 | | | 999 | |
| Interest on demands notes (note balances) | | | | 3 | | | 3 | | | 7 | | | 8 | |
| issued to the United States Treasury and on other |
| borrowed money |
| Total Interest expense | | | | 2,263 | | | 2,492 | | | 4,457 | | | 5,112 | |
| | |
| Net Interest Income | | | | 6,002 | | | 5,896 | | | 11,989 | | | 11,671 | |
| Provision for loan losses | | | | 200 | | | 300 | | | 350 | | | 600 | |
| |
| Net interest income after provision for loan losses | | | | 5,802 | | | 5,596 | | | 11,639 | | | 11,071 | |
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| Other Income | | |
| |
| Income from fiduciary activities | | | | 641 | | | 517 | | | 1,312 | | | 1,069 | |
| Service charges on deposits | | | | 1,276 | | | 730 | | | 2,025 | | | 1,444 | |
| Other service charges, commissions and fees | | | | 374 | | | 366 | | | 780 | | | 676 | |
| Other operating income | | | | 218 | | | 273 | | | 388 | | | 493 | |
| Security gains(losses) | | | | 47 | | | 24 | | | 199 | | | 29 | |
| Trading account income | | | | 0 | | | 0 | | | 0 | | | 0 | |
| Total Other income | | | | 2,556 | | | 1,910 | | | 4,704 | | | 3,711 | |
| |
| Other Expenses | | |
| |
| Salaries and employee benefits | | | | 3,259 | | | 2,982 | | | 6,467 | | | 5,904 | |
| Occupancy expense of bank premises | | | | 317 | | | 305 | | | 659 | | | 610 | |
| Furniture and equipment expense | | | | 405 | | | 412 | | | 806 | | | 821 | |
| Other operating expenses | | | | 1,266 | | | 1,227 | | | 2,443 | | | 2,257 | |
| Total other expenses | | | | 5,247 | | | 4,926 | | | 10,375 | | | 9,592 | |
| |
| Income before taxes | | | | 3,111 | | | 2,580 | | | 5,968 | | | 5,190 | |
| Applicable income taxes | | | | 805 | | | 640 | | | 1,569 | | | 1,296 | |
| |
| Net Income | | | | 2,306 | | | 1,940 | | | 4,399 | | | 3,894 | |
| |
| Per Share |
| Based on weighted average number of common | | | | 3,994,255 | | | 3,955,511 | | | 3,988,908 | | | 3,948,406 | |
| shares outstanding |
| Basic Earnings per share | | | $ | 0.58 | | $ | 0.49 | | $ | 1.10 | | $ | 0.99 | |
| |
| Diluted Earnings per share | | | $ | 0.57 | | $ | 0.47 | | $ | 1.08 | | $ | 0.96 | |
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| Cash Dividends Declared | | | $ | 0.15 | | $ | 0.12 | | $ | 0.30 | | $ | 0.24 | |
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