Exhibit 99.1
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OLD POINT FINANCIAL CORPORATION ANNOUNCES EARNINGS
| • | Net loans up 9.1% |
| • | Total deposits up 1.3% |
| • | Noninterest-bearing deposits up 7.9% |
| • | Net Interest income up 9.8% |
| • | Net Interest Margin increases to 3.78% |
October 16, 2008, Hampton, VA Old Point Financial Corporation (Nasdaq “OPOF”) announced today net income of $1.98 million, or $0.40 per diluted share, for the quarter ended September 30, 2008, essentially unchanged from the third quarter of 2007. Results for the nine months ended September 30, 2008 were $5.88 million in net income, or $1.19 per diluted share, as compared with $5.92 million for the first nine months of 2007. Assets as of September 30, 2008 totaled $831.90 million, $4.33 million higher than September 30, 2007 assets of $827.58 million. Net loans grew to $634.72 million, a 9.1% increase over 2007 total net loans of $581.87 million. Deposits for the period increased to $608.71 million, or up 1.3% over September 30, 2007 deposits of $600.70 million. Dividends declared for 2008 year-to-date have been $0.49 per share, up $0.042, or 9.4% from year-to-date 2007. Return on Average Assets (ROA) for year-to-date 2008 is 0.94%, and Return on Average Equity (ROE) is 9.59%.
“Ever mindful of this uncertain economy,” saidRobert F. Shuford, President, Chairman and CEO of Old Point Financial Corporation. “We have taken a conservative approach and increased our loan loss provision by 100% over the past year, to $1.40 million. Additionally, we continue to monitor our asset quality and our loan officers continue to maintain a dialogue with their customers. Interestingly enough, even with the additional provision, our earnings are roughly equivalent to last year’s. Our net interest income before the provision is up by 9.8%.”
“We are encouraged by the response to our ‘Talk to Us’ campaign,” continued Shuford, “Scheduling our Senior Executives to visit our branches throughout the area has been a good way to deliver our message that we have no subprime loans or Fannie Mae or Freddie Mac stock. It has been good for business. We are particularly pleased with our Net Interest Margin, which has been on a steadily-increasing trend during the whole year, beginning at 3.42% and rising to 3.78%. “
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Other items of note for the third quarter of 2008:
Net interest incomewas $7.17 million, up 9.8% over the third quarter in 2007. For the first nine months of 2008, net interest income totaled $20.46 million, up $1.25 million, or 6.5%, over the nine months ended September 30, 2007.
Net Interest Margin (NIM)for the third quarter of 2008 was 3.78%, as compared with 3.50% for the three months ended September 30, 2007. For the nine months ending September 30, 2008 NIM was 3.59%, and 3.41% for the first nine months of 2007.
Total noninterest incomefor the third quarter was $3.37 million, up 10.9% or $331 thousand higher than the comparable quarter of 2007. For the first nine months of 2008, noninterest income was $9.76 million, up 5.6%, or $517 thousand over the first nine months of 2007.
Noninterest expensesincreased by $348 thousand on a quarter-to-quarter comparison, or 5.3%, and $1.07 million, or 5.5%, on a year-to-year basis.
Provision for Loan Lossesfor the quarter increased by 300%, or $600 thousand, over the three months ended September, 2007, and 100%, or $700 thousand, over the nine months.
Non-Performing Assets:Non-performing Assets (NPAs) as a percentage of total assets were at .65% as of September 30, 2008 as compared with .51% at the end of the second quarter in 2008, and .43% in the first quarter of 2008. NPAs as of September 30, 2008 consisted of $387 thousand in nonaccrual loans, $2.10 million in loans 90 days or more past due but still accruing interest, and $2.90 million in other real estate owned (OREO).
Net Charge Offs/Total Loans(Annualized) as of the end of the third quarter, 2008, was .20%, as compared with .20% at the end of the second quarter 2008, and .27% at the end of the first quarter.
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 20 branches and 60 ATMs throughout Hampton Roads andOld Point Trust & Financial Services, N.A., aHampton 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-08 | 30-Sep-07 | |||||
Assets | ||||||
Cash and due from banks | $ | 39,480 | $ | 14,266 | ||
Federal Funds Sold | 10,260 | 38,183 | ||||
Cash & Cash Equivalents | 49,740 | 52,449 | ||||
Investments: | ||||||
Securities available for sale, at fair value | 93,369 | 143,113 | ||||
Securities held to maturity (fair value approximates $3,343 and $3,671) | 3,304 | 3,632 | ||||
Loans (net of allowance for loan losses of $5,582 & $5,133) | 634,720 | 581,871 | ||||
Premises and equipment, net | 26,908 | 26,665 | ||||
Bank owned life insurance | 13,337 | 12,633 | ||||
Other Assets | 10,525 | 7,215 | ||||
Total Assets | $ | 831,903 | $ | 827,578 | ||
| Liabilities | 30-Sep-08 | 30-Sep-07 | ||||
Deposits: | ||||||
Noninterest-bearing deposits | $ | 104,668 | $ | 96,997 | ||
Savings deposits | 185,302 | 189,949 | ||||
Time Deposits | 318,741 | 313,752 | ||||
Total Deposits | 608,711 | 600,698 | ||||
Federal funds purchased, repurchase agreements and other borrowings | 57,285 | 55,405 | ||||
Federal Home Loan Bank Advances | 80,000 | 90,000 | ||||
Accrued expenses and other liabilities | 3,059 | 3,357 | ||||
Total Liabilities | 749,055 | 749,460 | ||||
Stockholders’ Equity | ||||||
Common stock, $5.00 par value | 24,512 | 19,723 | ||||
2008 | 2007 | |||||||||||||
Shares Authorized | 10,000,000 | 10,000,000 | ||||||||||||
Shares Issued | 4,902,417 | 3,944,711 | ||||||||||||
Additional paid-in capital | 15,445 | 15,297 | ||||||
Retained earnings | 43,113 | 44,095 | ||||||
Accumulated other comprehensive loss | (222 | ) | (997 | ) | ||||
Total stockholders’ equity | 82,848 | 78,118 | ||||||
Total liabilities and stockholders’ equity | $ | 831,903 | $ | 827,578 | ||||
Unaudited
Old Point Financial Corporation
Consolidated Statements of Income
(in thousands, except per share data)
| 3 Months Ended 30-Sep-08 | 3 Months Ended 30-Sep-07 | 9 Months Ended 30-Sep-08 | 9 Months Ended 30-Sep-07 | |||||||||
Interest and Dividend Income | ||||||||||||
Interest and fees on loans | $ | 10,450 | $ | 10,654 | $ | 30,796 | $ | 31,361 | ||||
Interest on federal funds sold | 28 | 347 | 358 | 644 | ||||||||
Interest on securities | ||||||||||||
Taxable | 743 | 1,009 | 2,600 | 3,384 | ||||||||
Tax exempt | 218 | 306 | 739 | 953 | ||||||||
Dividends and interest on all other securities | 278 | 102 | 754 | 323 | ||||||||
Total interest and dividend income | 11,717 | 12,418 | 35,247 | 36,665 | ||||||||
Interest Expense | ||||||||||||
Interest on savings deposits | 248 | 630 | 921 | 1,924 | ||||||||
Interest on time deposits | 3,061 | 3,599 | 10,023 | 10,254 | ||||||||
Interest on federal funds purchased, securities sold under agreement to repurchase and other borrowings | 207 | 490 | 757 | 1,467 | ||||||||
Interest on FHLB advances | 1,036 | 1,172 | 3,085 | 3,807 | ||||||||
Total Interest expense | 4,552 | 5,891 | 14,786 | 17,452 | ||||||||
Net interest income | 7,165 | 6,527 | 20,461 | 19,213 | ||||||||
Provision for loan losses | 800 | 200 | 1,400 | 700 | ||||||||
Net interest income after provision for loan losses | 6,365 | 6,327 | 19,061 | 18,513 | ||||||||
Noninterest Income | ||||||||||||
Income from fiduciary activities | 761 | 767 | 2,416 | 2,347 | ||||||||
Service charges on deposit accounts | 1,531 | 1,388 | 4,423 | 4,231 | ||||||||
Other service charges, commissions and fees | 835 | 609 | 2,214 | 1,776 | ||||||||
Income from bank owned life insurance | 178 | 159 | 535 | 455 | ||||||||
Gain on available-for-sale securities, net | 0 | 0 | 0 | 3 | ||||||||
Other operating income | 62 | 113 | 176 | 435 | ||||||||
Total noninterest income | 3,367 | 3,036 | 9,764 | 9,247 | ||||||||
Noninterest Expenses: | ||||||||||||
Salaries and employee benefits | 4,205 | 3,982 | 12,494 | 11,924 | ||||||||
Occupancy and equipment | 997 | 928 | 2,870 | 2,716 | ||||||||
Data processing | 253 | 223 | 742 | 647 | ||||||||
Marketing | 185 | 188 | 595 | 564 | ||||||||
Customer development | 192 | 177 | 603 | 516 | ||||||||
Employee professional development | 167 | 175 | 497 | 500 | ||||||||
Other operating expenses | 934 | 912 | 2,750 | 2,616 | ||||||||
Total noninterest expenses | 6,933 | 6,585 | 20,551 | 19,483 | ||||||||
Income before income taxes | 2,799 | 2,778 | 8,274 | 8,277 | ||||||||
Income tax expense | 821 | 798 | 2,391 | 2,353 | ||||||||
Net Income | 1,978 | 1,980 | 5,883 | 5,924 | ||||||||
*Basic Earnings per Share | ||||||||||||
Average shares outstanding | 4,902,188 | 4,939,269 | 4,904,421 | 4,971,874 | ||||||||
Net income per share of common stock | $ | 0.40 | $ | 0.40 | $ | 1.20 | $ | 1.19 | ||||
*Diluted Earnings per share | ||||||||||||
Average shares outstanding | 4,933,331 | 4,974,275 | 4,935,779 | 5,014,856 | ||||||||
Net income per share of common stock | $ | 0.40 | $ | 0.40 | $ | 1.19 | $ | 1.18 | ||||
*Cash Dividends Declared | $ | 0.17 | $ | 0.16 | $ | 0.49 | $ | 0.448 | ||||
| * | Note: per share data adjusted for 5 for 4 stock split in the form of a dividend declared August 19, 2007 and paid on October 1, 2007 |
Selected Ratios
| 3 Months Ended 30-Sep-08 | 3 Months Ended 30-Jun-08 | 3 Months Ended 31-Mar-08 | 3 Months Ended 31-Dec-07 | ||||||||||||
Net Interest Margin | 3.78 | % | 3.55 | % | 3.46 | % | 3.42 | % | |||||||
| 9 Months Ended 30-Sep-08 | 6 Months Ended 30-Jun-08 | 3 Months Ended 31-Mar-08 | |||||||||||||
NPAs/Total Assets | 0.65 | % | 0.51 | % | 0.43 | % | |||||||||
Net Charge Offs/Total Loans (Annualized) | 0.20 | % | 0.20 | % | 0.27 | % | |||||||||
Allowance for Loan Losses/Total Loans | 0.87 | % | 0.82 | % | 0.82 | % | |||||||||
Non-Performing Assets (NPAs) | $ | 5,387 | $ | 4,263 | $ | 3,657 | |||||||||
Composition of NPAs(000): | |||||||||||||||
Nonaccrual Loans | $ | 387 | $ | 889 | $ | 1,790 | |||||||||
Loans > 90 days past due, but still accruing interest | $ | 2,100 | $ | 896 | $ | 747 | |||||||||
Restructured Loans | $ | 0 | $ | 233 | $ | 0 | |||||||||
Other Real Estate Owned | $ | 2,900 | $ | 2,245 | $ | 1,120 | |||||||||