Exhibit 99.1
January 17, 2008
OLD POINT FINANCIAL CORPORATION ANNOUNCES EARNINGS
• | Fourth quarter 2007 net income up 12.6% |
• | 2007 earnings up 13.5% |
HAMPTON, VA. Old Point Financial Corporation (Nasdaq “OPOF”) announced today fourth quarter net income for the quarter ended December 31, 2007 of $2.0 million, as compared to $1.8 million in the fourth quarter of 2006, an increase of 12.6%. Basic earnings per share for the quarter are $.42 and fully diluted net income per share is $.41.
Total assets at December 31, 2007 were $822.6 million, as compared with $847.5 million in 2006. The 3.0% decrease in assets reflects Old Point Financial Corporation’s continuing balance sheet realignment as maturing securities have been used to retire $45 million in Federal Home Loan Bank (FHLB) advances. Net loans increased by 2.3% to $592.0 million and total deposits increased by 1.3%, to $596.2 million.
Net income for the quarter was positively impacted by the net interest margin. Interest income rose by $72 thousand, or 0.6%, from the quarter ending December 31, 2006, and interest expense decreased by $52 thousand, or 0.9%. Interest expense decreased largely because of the repayment of $45 million in FHLB advances during 2007. The net interest margin therefore improved by $124 thousand, or 2.0% over the comparable quarter in 2006. Noninterest income for the fourth quarter of 2007 rose by $358 thousand over 2006, a 12.4% increase. The increase was led by increases in debit card income, service charges on deposit accounts and income from fiduciary services. Noninterest expense increased by $133 thousand, or 2.1% from the fourth quarter of 2006.
Fiscal Year 2007 Results
Net income for 2007 was $8.0 million, as compared with 2006 net income of $7.0 million, an increase of 13.5%. Return on Average Assets (ROA) for 2007 was 0.97%, and Return on Average Equity (ROE) was 10.29%.
Net interest income after provision for loan losses for 2007 was $24.7 million as compared with $23.4 million in 2006, an increase of 5.4%. Total interest income rose by 9.2% or $4.1 million, and was partially offset by an increase of total interest expense of $3.1 million, or 15.2%.
Total non interest income for 2007 was $12.5 million, up 9.5%, or $1.1 million over 2006. Income from fiduciary activities contributed $447 thousand to the increase.
Non interest expenses increased by $842 thousand, or 3.3% over 2006. Salaries and employee benefits were the largest component of the increase, growing at a rate of 4.9%.
Net Interest Margin (NIM)on a fully tax equivalent basis for 2007 was 3.42%, unchanged from 2006 NIM.
Non-Performing Assets (NPAs)as a percentage of total assets were at 0.38% at the end of 2007, compared with 0.17% at the end of 2006. NPAs at December 31, 2007 totaled $3.2 million, as compared with $1.5 million at the end of 2006. NPAs for 2007 consisted of $621 thousand in loans 90 days or more past due but still accruing interest, $1.3 million in restructured debt, $1.1 million in other real estate owned (OREO), and $84 thousand in non-accrual loans. The $1.1 million in OREO consists of two residential properties acquired in December 2007 and carried at market value, and an undeveloped branch site.
Loans Charged Off (net of recoveries)totaled $654 thousand in 2007, versus $864 thousand in 2006.
Provision for Loan Lossesin 2007 decreased by $200 thousand, to $1.0 million, owing to the favorable decrease in loan losses.
Basic earnings per share for 2007 were $1.61 as compared with $1.41 in 2006, and diluted earnings per share were $1.59 and $1.39, respectively. The Company paid out $0.61 in dividends per common share during 2007. Earnings and dividends have been adjusted to reflect the 5-for-4 stock split in the form of a dividend in October, 2007.
Old Point Financial Corporation (Nasdaq SmallCap “OPOF”)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. www.oldpoint.com
For More Information Contact: Lani Chisman Davis, Marketing Director, 757/728-1286
Old Point Financial Corporation
Consolidated Balance Sheets (Unaudited)
Assets
(dollars in Thousands) | ||||||||||||||
31-Dec-07 | 31-Dec-06 | |||||||||||||
Cash and due from banks | $ | 16,367 | $ | 18,571 | ||||||||||
Federal Funds Sold | 35,197 | 18,213 | ||||||||||||
Cash and Cash Equivalents | $ | 51,564 | $ | 36,784 | ||||||||||
Securities available for sale, at market | 129,055 | 184,806 | ||||||||||||
Securities to be held to maturity (fair value approximates $2,947 and $3,454) | 2,904 | 3,432 | ||||||||||||
Loans (net of allowance of $5,130 and $4,784) | 592,014 | 578,809 | ||||||||||||
Premises and Equipment, net | 27,002 | 26,410 | ||||||||||||
Bank owned life insurance | 12,801 | 10,608 | ||||||||||||
Other Assets | 7,217 | 6,672 | ||||||||||||
Total Assets | $ | 822,557 | $ | 847,521 | ||||||||||
Liabilities | ||||||||||||||
31-Dec-07 | 31-Dec-06 | |||||||||||||
Noninterest-bearing deposits | $ | 95,970 | $ | 96,653 | ||||||||||
Savings deposits | 185,823 | 201,273 | ||||||||||||
Time Deposits | 314,372 | 290,488 | ||||||||||||
Total Deposits | 596,165 | 588,414 | ||||||||||||
Federal funds purchased and securities sold under agreement to repurchase | 64,225 | 57,053 | ||||||||||||
Federal Home Loan Bank Advances | 80,000 | 125,000 | ||||||||||||
Accrued expenses and other liabilities | 2,460 | 2,389 | ||||||||||||
Total Liabilities | $ | 742,850 | $ | 772,856 | ||||||||||
Stockholders’ Equity | ||||||||||||||
Common stock, $5.00 par value | 24,538 | 19,961 |
2007 | 2006 | |||||||||||
Shares Authorized | 10,000,000 | 10,000,000 | ||||||||||
Shares Outstanding | 4,907,567 | 3,992,155 |
Additional paid-in capital | 15,357 | 14,719 | ||||||||||||||
Retained Earnings | 40,039 | 42,245 | ||||||||||||||
Accumulated other comprehensive income(loss) | (227 | ) | (2,260 | ) | ||||||||||||
Total stockholders’ equity | 79,707 | 74,665 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 822,557 | $ | 847,521 | ||||||||||||
Old Point Financial Corporation
Consolidated Statements of Earnings (Unaudited)
3 Mo Ended 31-Dec-07 | 3 Mo Ended 31-Dec-06 | 12 Mo Ended 31-Dec-07 | 12 Mo Ended 31-Dec-06 | |||||||||
Dollars in thousands, except per share amounts | ||||||||||||
Interest Income | ||||||||||||
Interest and Fees on loans | $ | 10,526 | $ | 10,314 | $ | 41,887 | $ | 37,440 | ||||
Interest on federal funds sold | 350 | 232 | 994 | 467 | ||||||||
Interest on securities | ||||||||||||
Taxable | 1,087 | 1,276 | 4,470 | 5,118 | ||||||||
Exempt from Federal income tax | 294 | 340 | 1,247 | 1,445 | ||||||||
Dividends and interest on all other securities | 100 | 123 | 423 | 415 | ||||||||
Total interest income | 12,357 | 12,285 | 49,021 | 44,885 | ||||||||
Interest Expense | ||||||||||||
Interest on savings deposits | 578 | 617 | 2,502 | 2,290 | ||||||||
Interest on time deposits | 3,695 | 3,261 | 13,949 | 11,003 | ||||||||
Interest on federal funds purchased and securities sold under agreement to repurchase and other borrowings | 503 | 545 | 1,970 | 1,913 | ||||||||
Interest on FHLB advances | 1,121 | 1,526 | 4,928 | 5,070 | ||||||||
Total Interest expense | 5,897 | 5,949 | 23,349 | 20,276 | ||||||||
Net Interest Income | 6,460 | 6,336 | 25,672 | 24,609 | ||||||||
Provision for loan losses | 300 | 300 | 1,000 | 1,200 | ||||||||
Net interest income after provision for loan losses | 6,160 | 6,036 | 24,672 | 23,409 | ||||||||
Noninterest income | ||||||||||||
Income from fiduciary activities | 769 | 677 | 3,116 | 2,669 | ||||||||
Service charges on deposits | 1,547 | 1,381 | 5,779 | 5,445 | ||||||||
Other service charges, commissions and fees | 705 | 482 | 2,480 | 2,197 | ||||||||
Income from bank owned life insurance | 166 | 140 | 622 | 547 | ||||||||
Net gain on available-for-sale securities | 0 | 2 | 3 | 9 | ||||||||
Other operating income | 51 | 198 | 486 | 539 | ||||||||
Total noninterest income | 3,238 | 2,880 | 12,486 | 11,406 | ||||||||
Noninterest Expenses | ||||||||||||
Salaries and employee benefits | 4,007 | 3,826 | 15,931 | 15,192 | ||||||||
Occupancy and equipment | 924 | 875 | 3,640 | 3,514 | ||||||||
Service fees | 109 | 163 | 370 | 706 | ||||||||
Data processing | 231 | 187 | 878 | 738 | ||||||||
Marketing | 160 | 276 | 724 | 775 | ||||||||
Customer Development | 181 | 218 | 696 | 684 | ||||||||
Employee professional development | 145 | 129 | 645 | 591 | ||||||||
Other operating expenses | 783 | 733 | 3,139 | 2,981 | ||||||||
Total noninterest expenses | 6,540 | 6,407 | 26,023 | 25,181 | ||||||||
Income before taxes | 2,858 | 2,509 | 11,135 | 9,634 | ||||||||
Applicable income taxes | 813 | 692 | 3,166 | 2,610 | ||||||||
Net Income | $ | 2,045 | $ | 1,817 | $ | 7,969 | $ | 7,024 | ||||
Per Share | ||||||||||||
Weighted average number of common shares—basic | 4,912,654 | 4,990,194 | 4,956,880 | 4,989,960 | ||||||||
Weighted average number of common shares—diluted | 4,947,219 | 5,057,209 | 4,997,822 | 5,060,651 | ||||||||
Basic Earnings per share | $ | 0.42 | $ | 0.36 | $ | 1.61 | $ | 1.41 | ||||
Diluted Earnings per share | $ | 0.41 | $ | 0.36 | $ | 1.59 | $ | 1.39 | ||||
Cash Dividends Declared | $ | 0.16 | $ | 0.14 | $ | 0.61 | $ | 0.56 |
Selected Ratios
12 Months Ended 31-Dec-07 | 12 Months Ended 31-Dec-06 | |||||||
Net Interest Margin | 3.42 | % | 3.42 | % | ||||
NPAs/Total Assets | 0.38 | % | 0.17 | % | ||||
Net Charge Offs/Total Loans | 0.11 | % | 0.15 | % | ||||
Allowance for Loan Losses/Total Loans | 0.86 | % | 0.82 | % | ||||
Non-Performing Assets (NPAs) (in thousands) | ||||||||
Loans > 90 days past due, but still accruing interest | $ | 621 | $ | 826 | ||||
Restructured Loans | $ | 1,320 | $ | 0 | ||||
Other Real Estate Owned | $ | 1,120 | $ | 165 | ||||
Nonaccrual Loans | $ | 84 | $ | 458 | ||||
Total Non-perfoming Assets | $ | 3,145 | $ | 1,449 | ||||
Loans Charged Off (net of recoveries) (000) | $ | 654 | $ | 864 |