By ? Net income increases $897 thousand
? Deposits increase $62.9 million
? Assets increase by $58.0 million
January 23, 2013 Hampton, VA Old Point Financial Corporation (NASDAQ "OPOF") posted a profit of $4.2 million, or $0.84 per diluted share for the year ended December 31, 2012, an increase of $897 thousand or 27.26% over the same period in 2011. The increase in net income was due to an increase in realized gains on available?for?sale securities, from $787 thousand in 2011 to $2.3 million in 2012. A $1.3 million reduction in the provision for loan losses when comparing 2011 and 2012, also contributed to the increase in net income. Net loans charged off in 2012 were
57.62% lower than net charge?offs in 2011.
Assets as of December 31, 2012 were $907.5 million, an increase of $58.0 million, or 6.83%, compared to assets as of December 31, 2011. This growth in assets was driven by increased deposits, which included $49.0 million in low?cost deposits. As quality loan demand has decreased in recent years, Old Point is investing excess funds in securities that can be readily liquidated when loan demand recovers. Between December 31, 2011 and December 31, 2012, securities available?for?sale and cash and cash equivalents increased $110.3 million.
In 2012, noninterest income was up $2.8 million when compared to 2011. The largest increases came from bank?owned life insurance and realized gains on the sale of investment securities. Gains on investment securities increased due to a restructuring of the investment portfolio. During 2012, Old Point sold government agency securities and reinvested the proceeds in mortgage?backed securities. In addition to providing an enhancement to noninterest income in the current year, these investment transactions improved the portfolio's cash flow and yields, while only marginally increasing its duration.
Other service charges, commissions and fees also increased, growing $345 thousand between 2011 and 2012. Revenues from merchant processing services and investment brokerage services were the main contributors to this increase, as well as a $212 thousand increase in income from fiduciary activities from 2011 to 2012 as the Trust Company brought several new accounts under management. Old Point has been focusing on diversifying noninterest income in response to declining interest income and new regulatory restrictions on some sources of noninterest income.
In 2012, Old Point's noninterest expense increased $504 thousand as compared to 2011. The increase was due to growth in data processing expenses and salaries and benefits, both of which were affected by Old Point's strategic initiatives. New positions were added to focus on small business lending, treasury services, and lending in areas other
than commercial real estate.
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The increases noted above were partially offset by decreases in expenses related to foreclosed assets. Compared to
2011, foreclosure losses and expenses on a combined basis decreased $733 thousand in 2012. These expenses have declined as Old Point has worked successfully to sell these assets. Between December 31, 2011 and December 31, 2012, foreclosed assets decreased $2.8 million, or 29.99%, causing related expenses to decline as well.
As a community bank, we believe that to succeed, the community around us must thrive. In 2012, Old Point National Bank supported more than 300 organizations through sponsorships and charitable donations. Approximately 36% of our giving is earmarked for education, 29% for community development, 19% for arts & culture, and 16% for health & wellness. Additionally in 2012, Old Point National Bank was awarded with the following accomplishments: Volunteer Hampton Roads' Velocity Award, Virginia Business' Best Place to Work in Virginia, Inside Business' Best Place to Work in Hampton Roads, Virginian Pilot's Best Bank Winner, Virginia Gazette's Best Bank in Williamsburg, Hampton Roads Magazine's Best Bank, and the Daily Press's CHOICE Awards Best Bank Winner. For more 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).
2011. These numbers do not include restructured loans that are performing in accordance with their modified terms.
Allowance for Loan and Lease Losses (ALLL) as of December 31, 2012 was 1.55% of total loans; as of December 31,2011, that measure was 1.63%.
Net loans charged off as a percent of total loans were 0.76% for the year ended December 31, 2012, compared to1.62% in 2011.
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, 2011. 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.
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Old P oint Fina ncia l Corpora tion a nd S ubsidia rie s | ||
Cons olidated B alanc e S heet | ||
(dollars in thous ands , ex c ept s hare data) | Dec ember 31, | Dec ember 31, |
2012 | 2011 | |
(unaudited) | ||
Asse ts | ||
Cas h and due from bank s | $ 15,982 | $ 9,523 |
Interes t-bearing due from bank s | 24,732 | 13,978 |
Federal funds s old | 1,603 | 1,354 |
Cas h and c as h equivalents | 42,317 | 24,855 |
S ec urities available-for-s ale, at fair value | 329,456 | 236,599 |
S ec urities held-to-maturity (fair value approx im ates $574 and $1,526) | 570 | 1,515 |
Res tric ted s ec urities | 2,562 | 3,451 |
Loans , net of allowanc e for loan los s es of $7,324 and $8,498 | 463,809 | 511,829 |
P remis es and equipment, net | 32,528 | 30,264 |
B ank owned life ins uranc e | 21,824 | 21,593 |
Forec los ed as s ets , net of valuation allowanc e of $1,870 and $1,851 | 6,574 | 9,390 |
Other as s ets | 7,859 | 10,008 |
$ 907,499 | $ 849,504 | |
Lia bilitie s & S tockholde rs' Equity | ||
Depos its : | ||
Noninteres t-bearing depos its | $ 176,740 | $ 163,639 |
S avings depos its | 268,253 | 232,348 |
Time depos its | 308,823 | 294,892 |
Total depos its | 753,816 | 690,879 |
Overnight repurc has e agreements | 35,946 | 35,001 |
Term repurc has e agreements | 1,280 | 1,480 |
Federal Home Loan B ank advanc es | 25,000 | 35,000 |
A c c rued ex pens es and other liabilities | 2,157 | 1,279 |
Total liabilities | 818,199 | 763,639 |
Com mitments and c ontingenc ies | ||
S toc k holders ' equity : | ||
Com mon s toc k , $5 par value, 10,000,000 s hares authoriz ed; | ||
4,959,009 and 4,959,009 s hares is s ued and outs tanding | 24,795 | 24,795 |
A dditional paid-in c apital | 16,392 | 16,310 |
Retained earnings | 48,305 | 45,109 |
A c c umulated other c om prehens ive inc ome (los s ) | (192) | (349) |
Total s toc k holders ' equity | 89,300 | 85,865 |
$ 907,499 | $ 849,504 |
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Old P oint Fina ncia l Corpora tion a nd S ubsidia rie s | ||
Cons olidated S tatem ents of Inc om e | ||
(dollars in thous ands , ex c ept per s hare data) | Twelve M onths E nded | |
Dec em ber 31, | ||
2012 | 2011 | |
(unaudited) | ||
Inte re st a nd Divide nd Incom e : | ||
Interes t and fees on loans | $ 26,503 | $ 32,105 |
Interes t on due from bank s | 56 | 22 |
Interes t on federal funds s old | 2 | 21 |
Interes t on s ec urities : | ||
Tax able | 5,238 | 3,884 |
Tax -ex em pt | 681 | 157 |
Dividends and interes t on all other s ec urities | 100 | 62 |
Total interes t and dividend inc om e | 32,580 | 36,251 |
Inte re st Ex pe nse : | ||
Interes t on s avings depos its | 382 | 408 |
Interes t on tim e depos its | 3,851 | 4,496 |
Interes t on federal funds purc has ed, s ec urities s old under | ||
agreem ents to repurc has e and other borrowings | 45 | 106 |
Interes t on Federal Hom e Loan B ank advanc es | 1,496 | 1,705 |
Total interes t ex pens e | 5,774 | 6,715 |
Net interes t inc om e | 26,806 | 29,536 |
P rovis ion for loan los s es | 2,400 | 3,700 |
Net interes t inc om e, after provis ion for loan los s es | 24,406 | 25,836 |
Noninte re st Incom e : | ||
Inc om e from fiduc iary ac tivities | 3,214 | 3,002 |
S ervic e c harges on depos it ac c ounts | 4,239 | 4,256 |
Other s ervic e c harges , c om m is s ions and fees | 3,348 | 3,003 |
Inc om e from bank -owned life ins uranc e | 1,339 | 823 |
Gain on s ale of available-for-s ale s ec urities , net | 2,313 | 787 |
Other operating inc om e | 506 | 325 |
Total noninteres t inc om e | 14,959 | 12,196 |
Noninte re st Ex pe nse : | ||
S alaries and em ploy ee benefits | 20,340 | 19,139 |
Oc c upanc y and equipm ent | 4,373 | 4,292 |
Data proc es s ing | 1,630 | 1,386 |
FDIC ins uranc e | 1,044 | 1,222 |
Los s on write-down/s ale of forec los ed as s ets | 777 | 1,413 |
Cus tom er developm ent | 758 | 908 |
Legal and audit ex pens e | 725 | 696 |
E m ploy ee profes s ional developm ent | 600 | 579 |
Other outs ide s ervic e fees | 574 | 612 |
P os tage and c ourier ex pens e | 480 | 488 |
Forec los ed as s ets ex pens e | 408 | 505 |
Other operating ex pens e | 2,474 | 2,439 |
Total noninteres t ex pens e | 34,183 | 33,679 |
Inc om e before inc om e tax es | 5,182 | 4,353 |
Inc om e tax ex pens e | 995 | 1,063 |
Net inc om e | $ 4,187 | $ 3,290 |
Ba sic Ea rnings pe r S ha re : | ||
A verage s hares outs tanding | 4,959,009 | 4,952,313 |
Net inc om e per s hare of c om m on s toc k | $ 0.84 | $ 0.66 |
Dilute d Ea rnings pe r S ha re : | ||
A verage s hares outs tanding | 4,959,009 | 4,952,313 |
Net inc om e per s hare of c om m on s toc k | $ 0.84 | $ 0.66 |
Ca sh Divide nds De cla re d | $ 0.20 | $ 0.20 |
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Old P oint Fina ncia l Corpora tion a nd S ubsidia rie s | ||
Se le cte d Ra tios | Dec ember 31, | Dec ember 31, |
2012 | 2011 | |
Ne t Inte re st M a rgin Ye a r-to-Da te | 3.40% | 3.81% |
NP As/Tota l Asse ts | 1.97% | 2.16% |
Annua liz e d Ne t Cha rge Offs/Tota l Loa ns | 0.76% | 1.62% |
Allow a nce for Loa n Losse s/Tota l Loa ns | 1.55% | 1.63% |
Non-P e rform ing Asse ts (NP As) (in thousa nds) | ||
Nona ccrua l Loa ns | $ 10,632 | $ 8,475 |
Loa ns > 90 da ys pa st due , but still a ccruing inte re st | 447 | 517 |
Non-P e rform ing Re structure d Loa ns | 251 | 0 |
Fore close d Asse ts | 6,574 | 9,390 |
Tota l Non-P e rform ing Asse ts | $ 17,904 | $ 18,382 |
Othe r S e le cte d Num be rs (in thousa nds) | ||
Loa ns Cha rge d Off Ye a r-to-Da te , ne t of re cove rie s | $ 3,573 | $ 8,430 |
Year-to-Da te Average Loa ns | $ 478,220 | $ 544,523 |
Ye ar-to-Da te Average Asse ts | $ 869,436 | $ 853,849 |
Year-to-Da te Average Ea rning Asse ts | $ 801,012 | $ 779,524 |
Year-to-Da te Average De posits | $ 718,802 | $ 683,657 |
Ye ar-to-Da te Average Equity | $ 87,912 | $ 83,322 |
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