Exhibit 99.1
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,” saidRobert 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 losseswas $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 expensesincreased 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 ofOld 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, 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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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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