OLD POINT FINANCIAL CORP - FORM 8-K - EX-99.1 - PRESS RELEASE - February 11, 2011

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8-K - FORM 8-K - OLD POINT FINANCIAL CORPform8k021111.htm
 
 
 
Old Point Records Profit for Fourth Quarter and the Year
 
· Deposits grow
· Net interest margin improves
· Fourth quarter 2010 net income up 19.4%

February 10, 2011 Hampton, VA                         Old Point Financial Corporation (Nasdaq "OPOF") posted a profit of $450 thousand, or $0.09 per diluted share, in the quarter that ended December 31, 2010, as compared to $377 thousand or $0.08 per diluted share in the fourth quarter of 2009, an increase of 19.4%.  Assets as of December 31, 2010 were $886.84 million, a decrease of $34.58 million, or 3.8%, over assets as of December 31, 2009.  Securities available-for-sale, consisting mainly of short term government agency securities, increased $32.32 million, or 18.6% when comparing year end 2010 to year end 2009.  Deposits grew by $16.71 million, or 2.5% when comparing those same time periods.  Additionally, the Bank paid off $30.00 million in Federal Home Loan Bank (FHLB) advances in 2010, reducing the advances from $65.00 million to $35.00 million.

For the twelve months ending December 31, 2010, earnings per diluted share were $0.31 and net income was $1.55 million compared to $0.34 and $1.68 million for 2009.  When comparing the year ending December 31, 2010 to the year ending December 31, 2009, net interest income before the provision for loan losses increased 13.0%, to $30.91 million.  The net interest margin grew by 19 basis points to 3.63% year end over year end.

“Despite the challenges of 2010, we recorded a profit for the fourth quarter and for the year as a whole,” said Robert F. Shuford, Chairman and President of Old Point Financial Corporation.  “We accomplished this even though we increased our provision for loan losses by $1.93 million over 2009.  That action was prudent due to the continued uncertain economy and the difficulties facing our borrowers.  It should also be noted that the allowance for loan loss increased $5.36 million over 2009.

 
 
 


“During 2010, Old Point introduced e-statements and Old Point Mobile Banking.  Also, we keep our focus on future growth, with the work on our new five-story headquarters in downtown Hampton.  Old Point’s new building is expected to be completed in 2012.  As part of the project and in honor of the City of Hampton’s 400th anniversary, an archaeological team commissioned by Old Point completed a dig at the site where the headquarters will rise and made significant discoveries dating back to the 1750s.  Thousands of members of the public visited the dig location during the 2010 Blackbeard Pirate Festival, for which Old Point was the presenting sponsor.”


Other items of note for the fourth quarter 2010:

Non-performing Assets (NPAs) as of December 31, 2010 were $34.04 million, up from $15.41 on December 31, 2009.
Allowance for Loan and Lease Losses (ALLL) on December 31, 2010 was 2.25% of total loans; as of December 31, 2009, that measure was 1.24%.  The Company has continued building the ALLL throughout 2010.
Net loans charged off/provision for loan losses: For the year ended December 31, 2010, net loans charged off total $3.44 million, compared to $5.42 million during the twelve months ended December 31, 2009.  The provision for loan losses in the fourth quarter 2010 of $1.30 million represents a $575 thousand reduction to the provision over the fourth quarter of 2009.
Net interest margin (NIM) for the twelve months ended December 31, 2010 was 3.63% as compared to 3.44% the same period ended December 31, 2009.


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, 2009. 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 date of the release.

 
 
 



Old Point Financial Corporation ("OPOF" - Nasdaq) is the parent company of Old Point National Bank, a locally owned and managed community bank serving Hampton Roads with 21 branches and more than 60 ATMs throughout Hampton Roads and Old Point Trust & Financial Services, N.A., a Hampton Roads wealth management services provider. Web: www.oldpoint.com. For more information, contact Erin Black Old Point National Bank at 757- 728-1792.

 
 
 

 
 
Old Point Financial Corporation and Subsidiaries
  
Consolidated Balance Sheet
            
(dollars in thousands, except share data)
  
December 31,
    
December 31,
  
   
2010
    
2009
  
   
(unaudited)
  
Assets
            
             
Cash and due from banks
   $ 15,603     $ 13,224  
Federal funds sold
     12,828       34,412  
Cash and cash equivalents
     28,431       47,636  
Securities available-for-sale, at fair value
     206,092       173,775  
Securities held-to-maturity
                
(fair value approximates $1,957 and $2,233)
     1,952       2,212  
Restricted securities
     4,320       4,815  
Loans, net of allowance for loan losses of $13,228 and $7,864
     573,391       627,378  
Premises and equipment, net
     29,616       30,397  
Bank owned life insurance
     18,020       16,291  
Foreclosed assets, net of valuation allowance of $2,124 and $860
     11,448       7,623  
Other assets
     13,572       11,295  
    $ 886,842     $ 921,422  
                 
Liabilities & Stockholders' Equity
                
                 
Deposits:
                
Noninterest-bearing deposits
   $ 129,208     $ 111,637  
Savings deposits
     225,210       205,648  
Time deposits
     324,796       345,217  
Total deposits
     679,214       662,502  
Federal funds purchased and other borrowings
     731       1,019  
Overnight repurchase agreements
     50,757       49,560  
Term repurchase agreements
     38,959       59,859  
Federal Home Loan Bank advances
     35,000       65,000  
Accrued expenses and other liabilities
     1,229       1,874  
Total liabilities
     805,890       839,814  
                 
Commitments and contingencies
                
                 
Stockholders' equity:
                
Common stock, $5 par value, 10,000,000 shares authorized;
                
4,936,989 and 4,916,535 shares issued
     24,685       24,583  
Additional paid-in capital
     16,026       15,769  
Retained earnings
     42,810       42,519  
Accumulated other comprehensive loss
     (2,569 )     (1,263 )
Total stockholders' equity
     80,952       81,608  
    $ 886,842     $ 921,422  


 
 
 

 
 
Old Point Financial Corporation and Subsidiaries
              
Consolidated Statements of Income
              
(dollars in thousands, except per share data)
  
Three Months Ended
    
Twelve Months Ended
  
   
December 31,
    
December 31,
  
   
2010
    
2009
    
2010
    
2009
  
   
(unaudited)
    
(unaudited)
  
Interest and Dividend Income:
                  
Interest and fees on loans
   $ 9,099     $ 9,636     $ 37,081     $ 38,103  
Interest on federal funds sold
     10       21       75       54  
Interest on securities:
                                
   Taxable
     912       613       3,419       2,566  
   Tax-exempt
     47       104       268       538  
Dividends and interest on all other securities
     13       47       47       421  
  Total interest and dividend income
     10,081       10,421       40,890       41,682  
                                 
Interest Expense:
                                
Interest on savings and interest-bearing demand deposits
     111       82       413       361  
Interest on time deposits
     1,454       2,175       6,624       9,951  
Interest on federal funds purchased, securities sold under
                                
agreements to repurchase and other borrowings
     75       174       545       566  
Interest on Federal Home Loan Bank advances
     430       848       2,400       3,445  
  Total interest expense
     2,070       3,279       9,982       14,323  
Net interest income
     8,011       7,142       30,908       27,359  
Provision for loan losses
     1,300       1,875       8,800       6,875  
Net interest income, after provision for loan losses
     6,711       5,267       22,108       20,484  
                                 
Noninterest Income:
                                
Income from fiduciary activities
     754       757       3,074       2,987  
Service charges on deposit accounts
     1,096       1,358       4,760       5,473  
Other service charges, commissions and fees
     682       613       2,846       2,511  
Income from bank owned life insurance
     157       405       972       956  
Gain on available-for-sale securities, net
     0       290       541       290  
Other operating income
     135       119       446       397  
  Total noninterest income
     2,824       3,542       12,639       12,614  
                                 
Noninterest Expense:
                                
Salaries and employee benefits
     4,604       4,504       18,296       17,781  
Occupancy and equipment
     1,019       1,055       4,254       4,128  
FDIC insurance
     315       513       1,365       1,630  
Data processing
     330       278       1,248       1,089  
Customer development
     183       188       839       798  
Advertising
     126       106       654       619  
Loan expenses
     149       174       630       648  
Other outside service fees
     264       90       621       354  
Employee professional development
     112       108       491       500  
Postage and courier expenses
     118       152       511       550  
Legal and audit expenses
     309       140       874       479  
Loss (gain) on write-down/sale of foreclosed assets
     1,012       622       1,442       680  
Other
     402       534       1,826       1,949  
  Total noninterest expenses
     8,943       8,464       33,051       31,205  
Income before income taxes
     592       345       1,696       1,893  
Income tax expense (benefit)
     142       (32 )     149       211  
Net income
   $ 450     $ 377     $ 1,547     $ 1,682  
                                 
Basic Earnings per Share:
                                
Average shares outstanding
     4,937       4,909       4,928       4,908  
Net income per share of common stock
   $ 0.09     $ 0.08     $ 0.31     $ 0.34  
                                 
Diluted Earnings per Share:
                                
Average shares outstanding
     4,937       4,929       4,932       4,935  
Net income per share of common stock
   $ 0.09     $ 0.08     $ 0.31     $ 0.34  
                                 
Cash Dividends Declared
   $ 0.05     $ 0.10     $ 0.25     $ 0.47  

 
 
 

 
 
Old Point Financial Corporation and Subsidiaries
            
Selected Ratios
  
December 31,
    
December 31,
  
   
2010
    
2009
  
Net Interest Margin
     3.63 %     3.44 %
NPAs/Total Assets
     3.84 %     1.67 %
Annualized Net Charge Offs/Total Loans
     0.59 %     0.85 %
Allowance for Loan Losses/Total Loans
     2.25 %     1.24 %
                 
                 
Non-Performing Assets (NPAs) (in thousands)
                
Nonaccrual Loans
   $ 20,881     $ 4,917  
Loans> 90 days past due, but still accruing interest
     73       389  
Restructured Loans
     1,639       2,480  
Foreclosed Assets
     11,448       7,623  
Total Non-Performing Assets
   $ 34,041     $ 15,409  
                 
                 
Loans Charged Off (net of recoveries) (in thousands)
   $ 3,436     $ 5,417  
 

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