OLD POINT FINANCIAL CORPORATION ANNOUNCES
SECOND QUARTER 2005 EARNINGS
July 19, 2005, Hampton, VA Old Point Financial Corporation (Nasdaq “OPOF”) announced today that it had surpassed $700 million in assets for the first time in its history. Assets at the end of the quarter are $700.3 million, a 3.7% increase over June 30, 2004 assets of $675.3 million. Net loans also increased by 3.7% to $432.9 million. Net income for the quarter was $1.9 million and $3.9 million for the six months ending June 30 2005, as compared with second quarter 2004 net income of $2.3 million and $4.4 million for the first six months of 2004.
In commenting on the quarterly results,Robert F. Shuford, Chairman, President and CEO of Old Point Financial Corporation said, “We are in the midst of an expansion program. Expanding our footprint and building our franchise in Hampton Roads is expensive. In addition, compliance with Sarbanes Oxley has been very costly.”
Expansion began early in 2005 with the opening of the seventeenth Old Point National Bank branch office in the New Town section of Williamsburg. Renovation of the eighteenth office, an existing former bank branch on Independence Boulevard in the Town Center area of Virginia Beach, is almost complete. This office should open late in the third quarter 2005. The nineteenth office, in the Eagle Harbor section of Isle of Wight County, should be open in early 2006. Personnel to staff these offices have been added in anticipation of these new branches.
As a publicly traded company on NASDAQ, Old Point Financial Corporation is subject to the requirements of the Sarbanes Oxley Act (SOX), which requires companies to ensure compliance with stringent internal control procedures. Old Point has committed significant resources to comply with Sarbanes Oxley.
Return on Average Assets (ROA) for year-to-date 2005 is 1.14%, and Return on Average Equity (ROE) is 11.20%.
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 17-branch network extending from Chesapeake through James City County, andOld 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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| Old Point Financial Corporation | | |
| Consolidated Balance Sheets | | |
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| | (in thousands, except per share data) |
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| Assets |
| | 30-Jun-05 | 30-Jun-04 |
| Cash and due from banks | $ 20,082 | $ 21,318 |
| Federal Funds Sold | 11,894 | 1,372 |
| Cash and cash equivalents | 31,976 | 22,690 |
| Securities available-for-sale, at fair value | 196,636 | 193,490 |
| Securities held-to-maturity | | |
| (fair value approximates $3,188 and $9,321) | 3,115 | 9,074 |
| Loans, net of allowance for loan losses of | | |
| $4,179 and $4,743 | 432,939 | 417,509 |
| Premises and Equipment, net | 19,624 | 16,871 |
| Other Assets | 16,013 | 15,710 |
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| Total Assets | $ 700,303 | $ 675,344 |
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| Liabilities & Stockholders' Equity |
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| Deposits: |
| Noninterest-bearing deposits | $ 104,548 | $ 120,171 |
| Savings deposits | 191,806 | 180,924 |
| Time deposits | 212,971 | 211,829 |
| Total Deposits | 509,325 | 512,924 |
| Federal funds purchased, repurchase agreements | 48,370 | 35,635 |
| and other borrowings |
| Federal Home Loan Bank Advances | 70,000 | 60,000 |
| Accrued expenses and other liabilities | 1,707 | 2,940 |
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| Total Liabilities | $ 629,402 | $ 611,499 |
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| Stockholders' Equity |
| Common stock, $5.00 par value | 20,081 | 19,980 |
| 2005 2004 |
| Shares Authorized 10,000,000 10,000,000 |
| Shares Outstanding 4,016,144 3,995,872 | |
| Additional paid-in capital | 14,153 | 13,369 |
| Retained earnings | 37,402 | 32,396 |
| Accumulated other comprehensive income(loss) | (735) | (1,900) |
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| Total stockholders' equity | 70,901 | 63,845 |
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| Total liabilities and stockholders' equity | $ 700,303 | $ 675,344 |
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| Unaudited |
| Old Point Financial Corporation |
| Consolidated Statements of Earnings |
| | in thousands, except per share data |
| Interest Income | | | | 3 Months Ended | | | 3 Months Ended | | | 6 Months Ended | | | 6 Months Ended | |
| | | | | 30-Jun-05 | | | 30-Jun-04 | | | 30-Jun-05 | | | 30-Jun-04 | |
| Interest and fees on loans | | | $ | 6,908 | | $ | 6,398 | | $ | 13,663 | | $ | 12,837 | |
| Interest on federal funds sold | | | | 51 | | | 19 | | | 86 | | | 62 | |
| Interest on securities | | |
| Taxable | | | | 1,313 | | | 1,339 | | | 2,688 | | | 2,513 | |
| Exempt from Federal income tax | | | | 426 | | | 476 | | | 869 | | | 971 | |
| Dividends and interest on all other securities | | | | 50 | | | 33 | | | 105 | | | 64 | |
| Total interest income | | | | 8,748 | | | 8,265 | | | 17,411 | | | 16,447 | |
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| Interest Expense | | |
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| Interest on savings deposits | | | | 343 | | | 240 | | | 665 | | | 475 | |
| Interest on time deposits | | | | 1,598 | | | 1,402 | | | 3,083 | | | 2,755 | |
| Interest on federal funds purchased, securities | | | | 278 | | | 75 | | | 502 | | | 141 | |
| sold under agreement to repurchase and other |
| borrowings |
| Interest on Federal Home Loan Bank advances | | | | 550 | | | 546 | | | 1,134 | | | 1,086 | |
| Total interest expense | | | | 2,769 | | | 2,263 | | | 5,384 | | | 4,457 | |
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| Net Interest Income | | | | 5,979 | | | 6,002 | | | 12,027 | | | 11,990 | |
| Provision for loan losses | | | | 225 | | | 200 | | | 450 | | | 350 | |
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| Net interest income after provision for loan losses | | | | 5,754 | | | 5,802 | | | 11,577 | | | 11.640 | |
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| Noninterest Income |
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| Income from fiduciary activities | | | | 696 | | | 641 | | | 1,414 | | | 1,312 | |
| Service charges on deposit accounts | | | | 1,185 | | | 1,276 | | | 2,258 | | | 2,025 | |
| Other service charges, commissions and fees | | | | 401 | | | 374 | | | 899 | | | 780 | |
| Income from bank owned life insurance | | | | 125 | | | 115 | | | 247 | | | 225 | |
| Gains (loss) on available-for-sale securities, net | | | | 4 | | | 47 | | | 9 | | | 199 | |
| Other operating income | | | | 140 | | | 103 | | | 230 | | | 162 | |
| Total other income | | | | 2,551 | | | 2,556 | | | 5,057 | | | 4,703 | |
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| Noninterest Expense | | |
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| Salaries and employee benefits | | | | 3,564 | | | 3,259 | | | 6,975 | | | 6,467 | |
| Occupancy and equipment | | | | 744 | | | 722 | | | 1,501 | | | 1,466 | |
| Supplies | | | | 135 | | | 112 | | | 234 | | | 201 | |
| Postage and courier | | | | 116 | | | 116 | | | 234 | | | 216 | |
| Service fees | | | | 147 | | | 129 | | | 277 | | | 221 | |
| Data processing | | | | 147 | | | 150 | | | 294 | | | 302 | |
| Marketing | | | | 188 | | | 101 | | | 252 | | | 202 | |
| Customer development | | | | 134 | | | 101 | | | 265 | | | 189 | |
| Employee professional development | | | | 164 | | | 138 | | | 279 | | | 248 | |
| Other | | | | 442 | | | 419 | | | 968 | | | 863 | |
| Total noninterest expenses | | | | 5,781 | | | 5,247 | | | 11,279 | | | 10,375 | |
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| Income before income taxes | | | | 2,524 | | | 3,111 | | | 5,355 | | | 5,968 | |
| Income tax expense | | | | 670 | | | 805 | | | 1,444 | | | 1,569 | |
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| Net Income | | | | 1,854 | | | 2,306 | | | 3,911 | | | 4,399 | |
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| Basic Earnings Per Share |
| Average shares outstanding | | | | 4,016,144 | | | 3,994,255 | | | 4,015,763 | | | 3,988,908 | |
| Net income per share of common stock | | | $ | 0.46 | | $ | 0.58 | | $ | 0.97 | | $ | 1.10 | |
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| Diluted Earnings Per Share |
| Average shares outstanding | | | | 4,095,746 | | | 4,076,304 | | | 4,098,913 | | | 4,081,281 | |
| Net income per share of common stock | | | $ | 0.45 | | $ | 0.57 | | $ | 0.95 | | $ | 1.08 | |
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| Cash Dividends Declared | | | $ | 0.16 | | $ | 0.15 | | $ | 0.31 | | $ | 0.30 | |
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