Old Point Releases 2015 Results

·	Net loans increase $31.8 million

·	Net interest income increases $223 thousand

·	Noninterest income increases $492 thousand

Assets as of December 31, 2015 were $896.8 million, and net loans were $560.7 million. During 2015, Old Point continued to grow loans, funding this growth through cash flows from the securities portfolio and increased low-cost deposits. Net loans grew $31.8 million, or 6.02%, over the year, while securities declined $15.2 million and low-cost deposits increased $43.1 million. Old Point's low-cost deposits now comprise 71.87% of total deposits, approximately 15% higher than Virginia banks based on FDIC data as of December 31, 2015.

Old Point's investment portfolio includes mortgage-backed securities, which provide an ongoing source of cash flows that can be reinvested into loans or securities. In the fourth quarter of 2015, management began due diligence on a new investment strategy and allowed cash flows from the investment portfolio to remain in cash and due from banks until the analysis and restructuring of the portfolio is complete. This restructuring is designed to provide additional interest income and improved market value in future years. As part of this restructuring, Old Point transferred its portfolio of held-to-maturity securities to available-for-sale, in order to provide additional liquidity and flexibility in the future.

The shift in the balance sheet from securities to loans also better positions Old Point for 2016, as a significant portion of the loan growth in 2015 was in variable rate products. Variable rate loans reduce Old Point's interest rate risk and will increase income when interest rates rise. This loan growth was driven in part by Old Point's purchased loan program, which included student loans and the guaranteed portion of USDA and SBA loans. In 2015, Old Point also increased its focus on traditional small business lending and relationship-driven retail lending. This increased focus has fueled low-cost deposit growth and decreased the need for higher-cost time deposits, resulting in lower interest expense. Due to all of these changes, net interest income before the provision was $223 thousand higher in 2015 than in 2014.

Noninterest income increased $492 thousand between 2014 and 2015, mainly due to increased income from Old Point Mortgage and fiduciary activities. Increases in income from brokerage sales, pension record-keeping services, and merchant services also contributed to the increase in noninterest income. Also when comparing 2014 and 2015, most categories of noninterest expense decreased, but salaries and employee benefits were significantly impacted by a one-time charge to record the retirement package offered to Old Point's former president. Although the retirement package will be paid in 2016, accounting rules required that the entire amount be expensed in 2015. Other than this one-time expense, salary expense--a component of salaries and employee benefits--was essentially flat between 2014 and 2015.

For information about our commitment to the community, pick up a copy of Old Point's Community Engagement Report in any of our branches or request a PDF via email (lwright@oldpoint.com). For information about upcoming initiatives, please visit our website (www.oldpoint.com), our Facebook page (www.facebook.com/oldpoint), or join us on Twitter (www.twitter.com/opnb).

Other items of note:

Non-Performing Assets (NPAs) decreased from $11.8 million as of December 31, 2014 to $10.7 million as of December 31, 2015. NPAs do not include restructured loans that are performing in accordance with their modified terms. Loans past due 90 days or more but still accruing interest, a component of NPAs, totaled $3.4 million as of December 31, 2015, of which $3.2 million were student loans that are 97-98% guaranteed by the U.S. Government. Old Point expects to experience minimal losses on these government-guaranteed loans. At December 31, 2014, government-guaranteed student loans 90 days or more past due but still accruing interest totaled $1.0 million.

Allowance for Loan and Lease Losses (ALLL) as of December 31, 2015 and December 31, 2014 was 1.36% and 1.32% of total loans, respectively.

Net loans charged off as a percent of total loans (annualized) were 0.06% for the year ended December 31, 2015, compared to 0.07% in 2014. This decline in net charge-offs was partially due to loan recoveries received during 2015.

Net interest margin (NIM) was 3.56% for the year ended December 31, 2015, compared to 3.57% for the year ended December 31, 2014.

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 Old Point's management, as well as estimates and assumptions made by, and information currently available to, 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 Old Point 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 Old Point's market area; technology; reliance on third parties for key services; the real estate market; Old Point's expansion initiatives; accounting principles, policies and guidelines; and other factors detailed in Old Point's publicly filed documents, including its Annual Report on Form 10-K for the year ended December 31, 2014. 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 The Old Point National Bank of Phoebus, a locally owned and managed community bank serving all of 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, Vice President/Marketing Director, Old Point National Bank at 757- 251-2792.

Old Point Financial Corporation and Subsidiaries
Consolidated Balance Sheets		December 31,				December 31,
(dollars in thousands, except per share data)		2015				2014
		(unaudited)
Assets
Cash and due from banks		$	33,514			$	31,081
Interest-bearing due from banks			1,064				833
Federal funds sold			2,412				1,391
Cash and cash equivalents			36,990				33,305
Securities available-for-sale, at fair value			214,192				139,346
Securities held-to-maturity (fair value approximates $94,406)			-				90,089
Restricted securities			2,016				2,293
Loans, net of allowance for loan losses of $7,738 and $7,075			560,737				528,919
Premises and equipment, net			41,282				42,075
Bank-owned life insurance			24,411				23,525
Other real estate owned, net of valuation allowance of $2,549 and $2,908			2,741				5,106
Other assets			14,418				11,622
Total assets		$	896,787			$	876,280
Liabilities & Stockholders' Equity
Deposits:
Noninterest-bearing deposits		$	215,090			$	186,280
Savings deposits			321,370				307,078
Time deposits			210,011				223,296
Total deposits			746,471				716,654
Overnight repurchase agreements			25,950				37,404
Term repurchase agreements			0				412
Federal Home Loan Bank advances			25,000				30,000
Accrued expenses and other liabilities			6,190				3,313
Total liabilities			803,611				787,783
Commitments and contingencies
Stockholders' equity:
Common stock, $5 par value, 10,000,000 shares authorized;
4,959,009 shares issued and outstanding			24,795				24,795
Additional paid-in capital			16,392				16,392
Retained earnings			55,151				53,203
Accumulated other comprehensive loss, net			(3,162	)			(5,893	)
Total stockholders' equity			93,176				88,497
Total liabilities and stockholders' equity		$	896,787			$	876,280

Old Point Financial Corporation and Subsidiaries		Year Ended
Consolidated Statements of Income		December 31,
(dollars in thousands, except per share data)		2015				2014
		(unaudited)
Interest and Dividend Income:
Interest and fees on loans		$	25,972			$	24,881
Interest on due from banks			15				13
Interest on federal funds sold			2				5
Interest on securities:
Taxable			2,510				3,562
Tax-exempt			1,663				1,703
Dividends and interest on all other securities			133				125
Total interest and dividend income			30,295				30,289
Interest Expense:
Interest on savings deposits			227				230
Interest on time deposits			2,144				2,354
Interest on federal funds purchased, securities sold under
agreements to repurchase and other borrowings			30				32
Interest on Federal Home Loan Bank advances			1,231				1,233
Total interest expense			3,632				3,849
Net interest income			26,663				26,440
Provision for loan losses			1,025				600
Net interest income after provision for loan losses			25,638				25,840
Noninterest Income:
Income from fiduciary activities			3,617				3,506
Service charges on deposit accounts			4,021				4,119
Other service charges, commissions and fees			4,084				3,940
Income from bank-owned life insurance			885				851
Loss on sale of available-for-sale securities, net			76				2
Other operating income			453				226
Total noninterest income			13,136				12,644
Noninterest Expense:
Salaries and employee benefits			20,747				19,884
Occupancy and equipment			5,330				4,886
Data processing			1,625				1,663
FDIC insurance			586				704
Customer development			584				822
Legal and audit expenses			720				606
Other outside service fees			693				584
Employee professional development			591				721
Postage and courier			373				445
Stationery and supplies			374				446
Capital stock tax			439				499
ATM and check losses			452				410
Loss on write-down/sale of other real estate owned			957				872
Other operating expenses			1,615				1,630
Total noninterest expense			35,086				34,172
Income before income taxes			3,688				4,312
Income tax expense			54				196
Net income		$	3,634			$	4,116
Basic Earnings per Share:
Average shares outstanding			4,959,009				4,959,009
Net income per share of common stock		$	0.73			$	0.83
Diluted Earnings per Share:
Average shares outstanding			4,959,009				4,959,009
Net income per share of common stock		$	0.73			$	0.83
Cash Dividends Declared per Share:		$	0.34			$	0.26

Old Point Financial Corporation and Subsidiaries
Selected Ratios		December 31,
		2015				2014
Net Interest Margin Year-to-Date			3.56	%			3.57	%
NPAs/Total Assets			1.19	%			1.35	%
Annualized Net Charge Offs/Total Loans			0.06	%			0.07	%
Allowance for Loan Losses/Total Loans			1.36	%			1.32	%
Non-Performing Assets (NPAs) (in thousands)
Nonaccrual Loans		$	4,582			$	5,570
Loans > 90 days past due, but still accruing interest			3,356				1,141
Non-Performing Restructured Loans			0				0
Other real estate owned			2,741				5,106
Total Non-Performing Assets		$	10,679			$	11,817
Other Selected Numbers (in thousands)
Loans Charged Off Year-to-Date, net of recoveries		$	362			$	356
Year-to-Date Average Loans		$	563,533			$	517,183
Year-to-Date Average Assets		$	884,386			$	869,965
Year-to-Date Average Earning Assets		$	775,986			$	767,865
Year-to-Date Average Deposits		$	730,046			$	720,599
Year-to-Date Average Equity		$	90,433			$	85,550