UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2005
or
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number: 000-12896
OLD POINT FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
| VIRGINIA | 54-1265373 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
1 West Mellen Street, Hampton, Virginia 23663
(Address of principal executive offices) (Zip Code)
(757) 722-7451
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report.)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No
Indicate by check mark whether the registrant is an accelerated filer (as defined by Rule 12b-2 of the Exchange Act). ¨ Yes x No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
4,016,144 shares outstanding of Common Stock ($5.00 par value) at April 30, 2005.
OLD POINT FINANCIAL CORPORATION
FORM 10-Q
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
| Item 1. | Financial Statements. |
1 | ||
| Consolidated Balance Sheets March 31, 2005 and December 31, 2004 |
1 | |||
| Consolidated Statements of Income Three months ended March 31, 2005 and 2004 |
2 | |||
| 3 | ||||
| Consolidated Statements of Cash Flows Three months ended March 31, 2005 and 2004 |
4 | |||
| 5 | ||||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
9 | ||
| 13 | ||||
| Item 3. | 17 | |||
| Item 4. | 18 | |||
| PART II - OTHER INFORMATION | ||||
| Item 1. | 19 | |||
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
19 | ||
| Item 5. | 19 | |||
| Item 6. | 20 | |||
(i)
Old Point Financial Corporation and Subsidiaries
Consolidated Balance Sheets
| March 31, 2005 |
December 31, 2004 | ||||||
| (unaudited) | |||||||
| Assets |
|||||||
| Cash and due from banks |
$ | 15,676,632 | $ | 11,594,633 | |||
| Federal funds sold |
14,183,876 | 1,978,180 | |||||
| Cash and cash equivalents |
29,860,508 | 13,572,813 | |||||
| Securities available-for-sale, at fair value |
195,322,751 | 201,379,552 | |||||
| Securities held-to-maturity |
3,524,859 | 9,424,283 | |||||
| Loans, net of allowance for loan losses of $4,027,637 and $4,302,756 |
426,901,706 | 428,950,465 | |||||
| Premises and equipment, net |
19,212,588 | 18,542,520 | |||||
| Other assets |
15,908,938 | 14,405,427 | |||||
| $ | 690,731,350 | $ | 686,275,060 | ||||
| Liabilities & Stockholders’ Equity |
|||||||
| Deposits: |
|||||||
| Noninterest-bearing deposits |
$ | 106,566,076 | $ | 101,526,801 | |||
| Savings deposits |
195,707,179 | 200,485,606 | |||||
| Time deposits |
214,791,794 | 210,147,931 | |||||
| Total deposits |
517,065,049 | 512,160,338 | |||||
| Federal funds purchased, repurchase agreements and other borrowings |
52,960,034 | 48,927,719 | |||||
| Federal Home Loan Bank advances |
50,000,000 | 55,000,000 | |||||
| Accrued expenses and other liabilities |
2,171,494 | 1,047,681 | |||||
| Total liabilities |
622,196,577 | 617,135,738 | |||||
| Stockholders’ equity: |
|||||||
| Common stock, $5 par value, 10,000,000 shares authorized; 4,016,144 and 4,013,644 shares issued |
20,080,720 | 20,068,220 | |||||
| Additional paid-in capital |
14,152,750 | 14,074,162 | |||||
| Retained earnings |
36,190,340 | 34,803,848 | |||||
| Accumulated other comprehensive income (loss) |
(1,889,037 | ) | 193,092 | ||||
| Total stockholders’ equity |
68,534,773 | 69,139,322 | |||||
| $ | 690,731,350 | $ | 686,275,060 | ||||
See Notes to Consolidated Financial Statements.
- 1 -
Old Point Financial Corporation and Subsidiaries
Consolidated Statements of Income
| Three Months Ended March 31, | ||||||
| 2005 |
2004 | |||||
| (unaudited) | ||||||
| Interest and Dividend Income: |
||||||
| Interest and fees on loans |
$ | 6,754,378 | $ | 6,438,890 | ||
| Interest on federal funds sold |
35,533 | 42,604 | ||||
| Interest on securities: |
||||||
| Taxable |
1,375,030 | 1,173,660 | ||||
| Tax-exempt |
443,536 | 494,901 | ||||
| Dividends and interest on all other securities |
55,118 | 31,073 | ||||
| Total interest and dividend income |
8,663,595 | 8,181,128 | ||||
| Interest Expense: |
||||||
| Interest on savings deposits |
322,067 | 235,466 | ||||
| Interest on time deposits |
1,485,343 | 1,352,561 | ||||
| Interest on federal funds purchased, securities sold under agreement to repurchase and other borrowings |
223,728 | 65,721 | ||||
| Interest on Federal Home Loan Bank advances |
584,121 | 539,807 | ||||
| Total interest expense |
2,615,259 | 2,193,555 | ||||
| Net interest income |
6,048,336 | 5,987,573 | ||||
| Provision for loan losses |
225,000 | 150,000 | ||||
| Net interest income, after provision for loan losses |
5,823,336 | 5,837,573 | ||||
| Noninterest Income: |
||||||
| Income from fiduciary activities |
716,734 | 671,109 | ||||
| Service charges on deposit accounts |
1,072,578 | 748,367 | ||||
| Other service charges, commissions and fees |
498,152 | 406,706 | ||||
| Income from bank owned life insurance |
122,544 | 111,000 | ||||
| Gain on available-for-sale securities, net |
5,143 | 151,553 | ||||
| Other operating income |
90,636 | 59,209 | ||||
| Total noninterest income |
2,505,787 | 2,147,944 | ||||
| Noninterest Expense: |
||||||
| Salaries and employee benefits |
3,411,221 | 3,208,654 | ||||
| Occupancy and equipment |
756,913 | 743,464 | ||||
| Postage and courier |
118,256 | 100,216 | ||||
| Service fees |
129,325 | 91,919 | ||||
| Data processing |
147,148 | 151,492 | ||||
| Customer development |
131,704 | 88,756 | ||||
| Employee professional development |
115,304 | 110,730 | ||||
| Other |
688,494 | 633,485 | ||||
| Total noninterest expenses |
5,498,365 | 5,128,716 | ||||
| Income before income taxes |
2,830,758 | 2,856,801 | ||||
| Income tax expenses |
774,100 | 764,322 | ||||
| Net income |
$ | 2,056,658 | $ | 2,092,479 | ||
| Basic Earnings per Share: |
||||||
| Average shares outstanding |
4,015,377 | 3,983,561 | ||||
| Net income per share of common stock |
$ | 0.51 | $ | 0.53 | ||
| Diluted Earnings per Share: |
||||||
| Average shares outstanding |
4,102,075 | 4,086,258 | ||||
| Net income per share of common stock |
$ | 0.50 | $ | 0.51 | ||
See Notes to Consolidated Financial Statements.
- 2 -
Old Point Financial Corporation and Subsidiaries
Consolidated Statement of Changes in Stockholders’ Equity
| (Unaudited) |
Common Stock Shares |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income(Loss) |
Total Stockholders’ Equity |
||||||||||||||
| FOR THREE MONTHS ENDED MARCH 31, 2005 |
||||||||||||||||||||
| Balance at beginning of period |
4,013,644 | $ | 20,068,220 | $ | 14,074,162 | $ | 34,803,848 | $ | 193,092 | $ | 69,139,322 | |||||||||
| Comprehensive income: |
||||||||||||||||||||
| Net income |
— | — | — | 2,056,658 | — | 2,056,658 | ||||||||||||||
| Unrealized holding losses arising during the period (net of tax, $1,070,863) |
(2,078,735 | ) | (2,078,735 | ) | ||||||||||||||||
| Reclassification adjustment, (net of tax, $1,749) |
— | — | — | — | (3,394 | ) | (3,394 | ) | ||||||||||||
| Total comprehensive income (loss) |
— | — | — | 2,056,658 | (2,082,129 | ) | (25,471 | ) | ||||||||||||
| Sale of common stock |
2,500 | 12,500 | 69,210 | (27,583 | ) | — | 54,127 | |||||||||||||
| Nonqualified stock options |
— | — | 9,378 | — | — | 9,378 | ||||||||||||||
| Cash dividends ($.16 per share) |
— | — | — | (642,583 | ) | — | (642,583 | ) | ||||||||||||
| Balance at end of period |
4,016,144 | $ | 20,080,720 | $ | 14,152,750 | $ | 36,190,340 | $ | (1,889,037 | ) | $ | 68,534,773 | ||||||||
| FOR THREE MONTHS ENDED MARCH 31, 2004 |
||||||||||||||||||||
| Balance at beginning of period |
3,976,019 | $ | 19,880,095 | $ | 12,433,007 | $ | 30,245,571 | $ | 739,963 | $ | 63,298,636 | |||||||||
| Comprehensive income: |
||||||||||||||||||||
| Net income |
— | — | — | 2,092,479 | — | 2,092,479 | ||||||||||||||
| Unrealized holding gains arising during the period (net of tax, $590,620) |
1,146,498 | 1,146,498 | ||||||||||||||||||
| Reclassification adjustment, (net of tax, $51,528) |
— | — | — | — | (100,025 | ) | (100,025 | ) | ||||||||||||
| Total comprehensive income |
2,092,479 | 1,046,473 | 3,138,952 | |||||||||||||||||
| Sale of common stock |
14,132 | 70,660 | 438,581 | (329,541 | ) | — | 179,700 | |||||||||||||
| Cash dividends ($.15 per share) |
— | — | — | (598,072 | ) | — | (598,072 | ) | ||||||||||||
| Balance at end of period |
3,990,151 | $ | 19,950,755 | $ | 12,871,588 | $ | 31,410,437 | $ | 1,786,436 | $ | 66,019,216 | |||||||||
See Notes to Consolidated Financial Statements.
- 3 -
Old Point Financial Corporation and Subsidiaries
Consolidated Statements of Cash Flows
| Three Months Ended March 31, |
||||||||
| 2005 |
2004 |
|||||||
| (unaudited) | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
| Net income |
$ | 2,056,658 | $ | 2,092,479 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
319,020 | 323,016 | ||||||
| Provision for loan losses |
225,000 | |||||||