Old Point Records Profit for Fourth Quarter and the Year
· No executive bonuses in 2009
· Well-capitalized – no TARP needed
January 25, 2010 Hampton, VA Old Point Financial Corporation (Nasdaq "OPOF") posted a profit of $377 thousand or $0.08 per diluted share, in the quarter that ended December 31, 2009. Assets grew to $921.4 million, an increase of $86.5 million, or 10.4%, over assets as of December 31, 2008. Investment securities (securities available-for-sale, consisting mainly of short term government agency securities,) were a factor in the rise; they increased $76.8 million, or 79.2%. Deposits and repurchase agreements grew by $92.5 million, or 13.6%. Repurchase agreements are arrangements used by a bank’s commercial customers as a cash management tool. For the twelve months ending December 31, 2009, earnings per diluted share were $0.34 and net income was $1.7 million.
“Despite the challenges of 2009, we recorded a profit for the fourth quarter and for the year as a whole,” said Robert F. Shuford, Chairman and President of Old Point Financial Corporation. “We accomplished this even though we increased our provision for loan losses by $4.5 million over 2008. That action in a still-uncertain economy reflects Old Point’s long tradition of prudent and sound banking practices. In addition, the FDIC dramatically increased the insurance premiums paid by all banks in 2009 to cover the losses suffered by failed banks.” Old Point’s FDIC premium, which included a one-time industry special assessment, increased by $1.5 million during the twelve months ending December 31, 2009.
During 2009, Old Point continued to pursue its growth strategy, opening its 21st branch in the Ghent section of Norfolk. The Ghent office is the second in Norfolk, and brings the number of Old Point’s Southside offices to six.
Old Point did not apply for or receive for any TARP (Troubled Asset Relief Program) funds. “Old Point has a long history in Hampton Roads,” said Shuford, “We are well-capitalized. Since our founding in 1923, we have consistently demonstrated our ability to survive and prosper in all types of economic conditions.”
Non-performing assets (NPAs) as a percentage of total assets decreased to 1.40% as of December 31, 2009 vs. 1.79% on December 31, 2008. Total NPAs at December 31, 2009 were at $12.9 million, down from the December 31, 2008 total of $14.9 million. “We continue to monitor asset quality very closely and take appropriate actions as needed,” Shuford said.
Shuford noted Old Point did not provide bonuses to its executive staff in 2009. “Even though we managed to be profitable during a very tough economy, our bottom-line results did not merit that kind of executive compensation.”
Other items of note for the fourth quarter 2009:
Allowance for Loan and Lease Losses (ALLL) on December 31, 2009 was at 1.24% of total loans; as of December 31, 2008, that measure was 1.00%.
Net loans charged off: Net loans charged off stood at $5.4 million during the twelve months ended December 31, 2009 up from the $1.1 million charged off during the 12 months ended December 31, 2008.
Net interest margin (NIM) for the twelve months ended December 31, 2009 was 3.44% as compared to 3.61% the same period ended December 31, 2008.
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, 2008. 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.
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 21 branches and more than 60 ATMs throughout Hampton Roads 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 at Old Point National Bank at 757- 728-1286.
