Exhibit 99.1
Old Point Posts Profit in Third Quarter
| • | Quarterly profit of $1.16 million or $0.24 per diluted share |
| • | Assets grow by 4.79% |
| • | Deposits rise 2.78% |
| • | Strategies for growth continue |
October 20, 2009 Hampton, VAOld Point Financial Corporation(Nasdaq “OPOF”) posted a profit of $1.16 million, or $0.24 per diluted share, in the quarter that ended September 30, 2009. For the nine months, year-to-date earnings per diluted share were $0.26. Assets grew to $871.7 million, an increase of $39.8 million, or 4.79% over assets as of September 30, 2008, and deposits increased by $16.9 million to $625.6 million.
“Our 2009 third-quarter profit comes during a particularly challenging year,” saidRobert F. Shuford, Chairman and President of Old Point Financial Corporation. “We remain profitable year-to-date despite a much higher FDIC (Federal Deposit Insurance Corporation) premium and significant increases to our loan loss provision. While the economic outlook continues to be uncertain, we are beginning to experience stabilization and some positive indicators.” Shuford said the fact that 2009 third-quarter profit was lower than the 2008 third-quarter figure was not surprising, “given that the impact of the global economic problems only began to be felt in the second half of 2008.”
Old Point continues to pursue its growth strategy: its 21st branch location, in Norfolk’s Ghent section, is nearing completion, and the Corporate Banking unit, headed up by Executive Vice President Joe Witt, is being staffed with experienced personnel. The unit has successfully won the business of several larger corporations in the Hampton Roads area, and is pursuing more.
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Other items of note for the third quarter 2009:
Non-performing Assets (NPAs) as a percentage of total assets are at 1.97% as of September 30, 2009 vs. 1.86% on June 30, 2009, and 1.79% on December 30, 2008.
Allowance for Loan and Lease Losses (ALLL) on September 30, 2009 was at 1.22% of total loans; as of December 31, 2008, that measure was 1.00%. The Company continues to build the ALLL; the Bank made an addition of $5 million to the ALLL during the first nine months of 2009.
Net loans charged off:Net loans charged off stood at $3.65 million during the nine months ended September 30, 2009. During the three month period ended September 30, 2009, $521 thousand in net loans were charged off, down from the $2.74 million in net charge offs in the three months ended June 30, 2009.
Net interest margin (NIM)for the third quarter of 2009 was 3.58% as compared to 3.78% for the third quarter of 2008. Year-to-date 2009 NIM is 3.43%.
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 the date of this release.
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 more than 60 ATMs throughout Hampton Roads 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 at Old Point National Bank at 757- 728-1286.
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Old Point Financial Corporation
Consolidated Balance Sheets
(in thousands, except per share data)
| 30-Sep-09 | 30-Sep-08 | |||||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 20,445 | $ | 39,480 | ||||||||
Federal funds sold | 25,740 | 10,260 | ||||||||||
Cash & Cash Equivalents | 46,185 | 49,740 | ||||||||||
Investments: | ||||||||||||
Securities available for sale, at fair value | 129,433 | 88,007 | ||||||||||
Securities held to maturity (fair value approximates $2,006 and $3,343) | 1,967 | 3,304 | ||||||||||
Restricted securities | 4,815 | 5,241 | ||||||||||
Loans (net of allowance for loan losses of $7,754 & $5,582) | 627,372 | 634,720 | ||||||||||
Premises and equipment, net | 29,717 | 26,908 | ||||||||||
Bank owned life insurance | 16,569 | 13,337 | ||||||||||
Other real estate owned, net | 8,486 | 2,944 | ||||||||||
Other Assets | 7,202 | 7,702 | ||||||||||
Total Assets | $ | 871,746 | $ | 831,903 | ||||||||
| 30-Sep-09 | 30-Sep-08 | |||||||||||
Liabilities | ||||||||||||
Deposits: | ||||||||||||
Noninterest-bearing deposits | $ | 110,426 | $ | 104,668 | ||||||||
Savings deposits | 186,441 | 185,302 | ||||||||||
Time Deposits | 328,750 | 318,741 | ||||||||||
Total Deposits | 625,617 | 608,711 | ||||||||||
Federal funds purchased, repurchase agreements and other borrowings | 96,336 | 57,285 | ||||||||||
Federal Home Loan Bank advances | 65,000 | 80,000 | ||||||||||
Accrued expenses and other liabilities | 2,313 | 3,059 | ||||||||||
Total Liabilities | 789,266 | 749,055 | ||||||||||
Stockholders’ Equity | ||||||||||||
Common stock, $5.00 par value | 24,545 | 24,512 | ||||||||||
| 2009 | 2008 | |||||||||||
Shares Authorized | 10,000,000 | 10,000,000 | ||||||||||
Shares Issued | 4,909,035 | 4,902,417 | ||||||||||
Additional paid-in capital | 15,666 | 15,445 | ||||||||||
Retained earnings | 42,672 | 43,113 | ||||||||||
Accumulated other comprehensive loss | (403 | ) | (222 | ) | ||||||||
Total stockholders’ equity | 82,480 | 82,848 | ||||||||||
Total liabilities and stockholders’ equity | $ | 871,746 | $ | 831,903 | ||||||||
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Old Point Financial Corporation
Consolidated Statements of Income
(in thousands, except per share data)
| 3 Months Ended 30-Sep-09 | 3 Months Ended 30-Sep-08 | 9 Months Ended 30-Sep-09 | 9 Months Ended 30-Sep-08 | ||||||||||
Interest and Dividend Income | |||||||||||||
Interest and fees on loans | $ | 9,649 | $ | 10,450 | $ | 28,467 | $ | 30,796 | |||||
Interest on federal funds sold | 11 | 28 | 33 | 358 | |||||||||
Interest on securities | |||||||||||||
Taxable | 584 | 743 | 1,953 | 2,600 | |||||||||
Tax exempt | 121 | 218 | 435 | 739 | |||||||||
Dividends and interest on all other securities | 107 | 278 | 374 | 754 | |||||||||
Total interest and dividend income | 10,472 | 11,717 | 31,262 | 35,247 | |||||||||
Interest Expense | |||||||||||||
Interest on savings deposits | 86 | 248 | 279 | 921 | |||||||||
Interest on time deposits | 2,341 | 3,061 | 7,776 | 10,023 | |||||||||
Interest on federal funds purchased, securities sold under agreement to repurchase and other borrowings | 151 | 207 | 392 | 757 | |||||||||
Interest on FHLB advances | 848 | 1,036 | 2,597 | 3,085 | |||||||||
Total Interest expense | 3,426 | 4,552 | 11,044 | 14,786 | |||||||||
Net interest income | 7,046 | 7,165 | 20,218 | 20,461 | |||||||||
Provision for loan losses | 1,000 | 800 | 5,000 | 1,400 | |||||||||
Net interest income after provision for loan losses | 6,046 | 6,365 | 15,218 | 19,061 | |||||||||
Noninterest Income | |||||||||||||
Income from fiduciary activities | 702 | 761 | 2,230 | 2,416 | |||||||||
Service charges on deposit accounts | 1,403 | 1,531 | 4,116 | 4,423 | |||||||||
Other service charges, commissions and fees | 630 | 605 | 1,898 | 1,987 | |||||||||
Income from bank owned life insurance | 199 | 178 | 551 | 535 | |||||||||
Gain on disposal of premises and equipment | 0 | 230 | 0 | 227 | |||||||||
Other operating income | 73 | 62 | 277 | 176 | |||||||||
Total noninterest income | 3,007 | 3,367 | 9,072 | 9,764 | |||||||||
Noninterest Expenses: | |||||||||||||
Salaries and employee benefits | 4,463 | 4,205 | 13,277 | 12,494 | |||||||||
Occupancy and equipment | 1,027 | 997 | 3,073 | 2,870 | |||||||||
FDIC insurance | 264 | 38 | 1,117 | 72 | |||||||||
Data processing | 287 | 253 | 811 | 742 | |||||||||
Customer development | 228 | 192 | 610 | 603 | |||||||||
Advertising | 161 | 185 | 513 | 595 | |||||||||
Loan expenses | 173 | 54 | 474 | 152 | |||||||||
Employee professional development | 121 | 167 | 393 | 497 | |||||||||
Legal and audit expenses | 139 | 106 | 339 | 305 | |||||||||
Loss (gain) on write-down/sale of other real estate owned | (83 | ) | 0 | 58 | 0 | ||||||||
Other operating expenses | 666 | 736 | 2,076 | 2,221 | |||||||||
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Total noninterest expenses | 7,446 | 6,933 | 22,741 | 20,551 | ||||||||||||
Income before income taxes | 1,607 | 2,799 | 1,549 | 8,274 | ||||||||||||
Income tax expense | 449 | 821 | 243 | 2,391 | ||||||||||||
Net Income | 1,158 | 1,978 | 1,306 | 5,883 | ||||||||||||
Basic Earnings per Share | ||||||||||||||||
Average shares outstanding | 4,909,035 | 4,902,188 | 4,908,094 | 4,904,421 | ||||||||||||
Net income per share of common stock | $ | 0.24 | $ | 0.40 | $ | 0.27 | $ | 1.20 | ||||||||
Diluted Earnings per share | ||||||||||||||||
Average shares outstanding | 4,934,522 | 4,933,331 | 4,936,247 | 4,935,779 | ||||||||||||
Net income per share of common stock | $ | 0.24 | $ | 0.40 | $ | 0.26 | $ | 1.19 | ||||||||
Cash Dividends Declared | $ | 0.10 | $ | 0.17 | $ | 0.37 | $ | 0.49 | ||||||||
Selected Ratios | ||||||||||||||||
| 3 Months Ended 30-Sep-09 | 3 Months Ended 30-Sep-08 | 9 Months Ended 30-Sep-09 | 9 Months Ended 30-Sep-08 | |||||||||||||
Net Interest Margin | 3.58 | % | 3.78 | % | 3.43 | % | 3.59 | % | ||||||||
| As of 30-Sep-09 | As of 30-Jun-09 | As of 31-Mar-09 | As of 31-Dec-08 | |||||||||||||
NPAs/Total Assets | 1.97 | % | 1.86 | % | 1.94 | % | 1.79 | % | ||||||||
Allowance for Loan Losses/Total Loans | 1.22 | % | 1.15 | % | 1.11 | % | 1.00 | % | ||||||||
Non-Performing Assets (NPAs) | $ | 17,213 | $ | 15,863 | $ | 17,087 | $ | 14,919 | ||||||||
Composition of NPAs(000): | ||||||||||||||||
Nonaccrual Loans | $ | 5,309 | $ | 5,925 | $ | 9,529 | $ | 1,045 | ||||||||
Loans > 90 days past due, but still accruing interest | $ | 2,729 | $ | 1,217 | $ | 2,810 | $ | 3,529 | ||||||||
Restructured Loans | $ | 689 | $ | 689 | $ | 689 | $ | 6,594 | ||||||||
Other Real Estate Owned | $ | 8,486 | $ | 8,032 | $ | 4,059 | $ | 3,751 | ||||||||
| 9 Months Ended 30-Sep-09 | 6 Months Ended 30-Jun-09 | 3 Months Ended 31-Mar-09 | 12 Months Ended 31-Dec-08 | |||||||||||||
Loans charged off net of recoveries (000) | $ | 3,652 | $ | 3,131 | $ | 392 | $ | 1,124 | ||||||||
Net annualized charge offs/total loans | 0.77 | % | 0.99 | % | 0.25 | % | 0.18 | % | ||||||||
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