SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarterly period Ended March 31, 1999 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from to Commission File No. 0-12896 (1934 Act) OLD POINT FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Virginia 54-1265373 (State or other jurisdiction of (I.R.S. Employer incorporation or organization Identification No.) 1 West Mellen Street, Hampton, Va. 23663 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code (757) 722-7451 Not Applicable Former name, former address and former fiscal year, if changed since last report. Check whether the registrant (1) has filed all reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act 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. Yes X No State the number of shares outstanding of each of the issuer's classes of common stock as of April 30, 1999. Class Outstanding at April 30,1999 Common Stock, $5.00 par value 2,576,244 shares
OLD POINT FINANCIAL CORPORATION FORM 10-Q INDEX PART I - FINANCIAL INFORMATION Page Item 1. Financial Statements 1 Consolidated Balance Sheets March 31, 1999 and December 31, 1998 1 Consolidated Statement of Earnings Three months ended March 31, 1999 and 1998 2 Consolidated Statement of Cash Flows Three months ended March 31, 1999 and 1998 3 Consolidated Statements of Changes in Stockholders' Equity Three months ended March 31, 1999 and 1998 4 Notes to Consolidated Financial Statements 5 Parent Only Balance Sheets March 31, 1999 and December 31, 1998 6 Parent Only Statement of Earnings Three months ended March 31, 1999 and 1998 6 Parent Only Statement of Cash Flows Three months ended March 31, 1999 and 1998 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Analysis of Changes in Net Interest Income 11 Interest Sensitivity Analysis 12 PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 13 (i)
<TABLE> <CAPTION> _______________________________________________________________________________________ PART 1. - FINANCIAL INFORMATION OLD POINT FINANCIAL CORPORATION Consolidated Balance Sheets March 31, December 31, (Unaudited) 1999 1998 _______________________________________________________________________________________ Assets <S> <C> <C> Cash and due from banks....................... $ 8,242,312 $ 10,200,201 Interest bearing balances due from banks...... 40,730 110,638 Securities available for sale, at market...... 85,054,452 82,568,024 Securities to be held to maturity............. 54,424,820 54,919,340 Trading account securities.................... 0 0 Federal funds sold............................ 3,097,434 6,577,903 Loans, total.................................. 247,642,584 235,865,038 Less reserve for loan losses.............. 2,911,588 2,854,952 ----------- ----------- Net loans............................. 244,730,996 233,010,086 Bank premises and equipment................... 12,937,067 12,051,677 Other real estate owned....................... 413,864 483,864 Other assets.................................. 4,309,803 4,195,963 ----------- ----------- Total assets............................. $413,251,478 $404,117,696 ============ ============ Liabilities Noninterest-bearing deposits.................. $ 61,088,162 $65,335,643 Savings deposits.............................. 122,798,122 121,681,505 Time deposits................................. 161,853,285 156,395,329 ------------ -------------- Total deposits............................. 345,739,569 343,412,477 Federal funds purchased and securities sold under agreement to repurchase............. 23,539,728 19,128,382 Interest-bearing demand notes issued to the United States Treasury and other liabilities for borrowed money............. 1,076,629 348,057 Other liabilities............................. 1,785,873 1,215,785 ------------ -------------- Total liabilities.......................... $372,141,799 $364,104,701 Stockholders' Equity Common stock, $5.00 par value................. 12,881,220 12,877,220 1999 1998 Shares authorized..6,000,000 6,000,000 Shares outstanding.2,576,244 2,575,444 Surplus....................................... 10,042,634 10,020,066 Undivided profits............................. 17,187,280 16,284,552 Unrealized gain/(loss) on securities ......... 998,545 831,157 ------------ ------------ Total stockholders' equity................ 41,109,679 40,012,995 Total liabilities and stockholders' equity $413,251,478 $404,117,696 ============ ============ </TABLE> See accompanying notes - 1 -
<TABLE> <CAPTION> _______________________________________________________________________________________ OLD POINT FINANCIAL CORPORATION Three Months Ended Consolidated Statements of Earnings March 31, (Unaudited) 1999 1998 Interest Income _______________________________________________________________________________________ <S> <C> <C> Interest and fees on loans.................... $ 5,115,115 $ 4,923,323 Interest on federal funds sold................ 61,400 182,156 Interest on securities: Taxable.................................... 1,271,100 1,125,681 Exempt from Federal income tax............. 634,740 372,649 -------------- -------------- Total interest on securities............ 1,905,840 1,498,330 Total interest income..................... 7,082,355 6,603,809 Interest Expense Interest on savings deposits.................. 895,963 752,215 Interest on time deposits..................... 2,124,800 1,915,351 Interest on federal funds purchased and securities sold under agreement to repurchase 238,340 233,701 Interest on demand notes (note balances) issued to the United States Treasury and on other borrowed money.................. 16,819 27,810 -------------- -------------- Total interest expense.................... 3,275,922 2,929,077 Net interest income........................... 3,806,433 3,674,732 Provision for loan losses..................... 150,000 150,000 -------------- -------------- Net interest income after provision for loan losses............................. 3,656,433 3,524,732 Other Income Income from fiduciary activities.............. 509,850 449,850 Service charges on deposit accounts........... 525,333 432,726 Other service charges, commissions and fees... 206,926 200,190 Other operating income........................ 83,457 88,783 Security gains (losses)....................... 0 0 Trading account income........................ 0 0 -------------- -------------- Total other income........................ 1,325,566 1,171,549 Other Expenses Salaries and employee benefits................ 2,070,713 1,843,527 Occupancy expense of Bank premises............ 230,145 218,767 Furniture and equipment expense............... 287,499 290,978 Other operating expenses...................... 793,934 743,563 -------------- -------------- Total other expenses...................... 3,382,291 3,096,835 Income before taxes........................... 1,599,708 1,599,446 Applicable income taxes ...................... 351,300 426,500 -------------- -------------- Net income.................................... $1,248,408 $1,172,946 ============== ============== Per Share Based on weighted average number of common shares outstanding................... 2,575,826 2,566,185 Basic Earnings per Share $0.48 $0.46 Diluted Earnings per Share $0.48 $0.45 </TABLE> See accompanying notes -2-
<TABLE> <CAPTION> _________________________________________________________________________________________________ OLD POINT FINANCIAL CORPORATION Three Months Ended Consolidated Statements of Cash Flows March 31, (Unaudited) 1999 1998 _________________________________________________________________________________________________ <S> <C> <C> CASH FLOWS FROM OPERATING ACTIVITIES Net income.................................................... $ 1,248,408 $ 1,172,946 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization............................... 265,611 238,834 Provision for loan losses................................... 150,000 150,000 (Gains) loss on sale of investment securities, net.......... 0 0 Net amortization & accretion of securities ................. 32,182 28,938 Net (increase) decrease in trading account.................. 0 0 (Increase) in other real estate owned....................... (215,056) (175,909) (Increase) decrease in other assets (net of tax effect of FASB 115 adjustment)................ (200,070) (446,595) Increase (decrease) in other liabilities.................... 570,088 738,419 ------------ ------------- Net cash provided by operating activities................. 1,851,163 1,706,633 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of securities .................................... (13,270,472) (31,359,451) Proceeds from maturities & calls of securities ............. 11,500,000 12,043,000 Proceeds from sales of available - for - sale securities.... 0 0 Proceeds from sales of held - to - maturity securities...... 0 0 Loans made to customers..................................... (35,038,614) (28,661,487) Principal payments received on loans........................ 23,167,703 25,837,888 Proceeds from sales of other real estate owned.............. 285,056 370,000 Purchases of premises and equipment......................... (1,151,000) (1,167,296) (Increase) decrease in federal funds sold................... 3,480,469 (14,096,320) ------------ ------------- Net cash provided by (used in) investing activities....... (11,026,858) (37,033,666) CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in non-interest bearing deposits........ (4,247,481) 9,390,137 Increase (decrease) in savings deposits..................... 1,116,617 18,199,190 Proceeds from the sale of certificates of deposit........... 11,637,876 17,276,680 Payments for maturing certificates of deposit............... (6,179,920) (9,757,966) Increase (decrease) in federal funds purchased & repurchase agreements...................................... 4,411,346 (1,028,678) Increase (decrease) in other borrowed money................. 728,572 (560,856) Proceeds from issuance of common stock...................... 15,800 21,750 Dividends paid.............................................. (334,912) (282,279) ------------ ------------- Net cash provided by financing activities................. 7,147,898 33,257,978 Net increase (decrease) in cash and due from banks........ (2,027,797) (2,069,055) Cash and due from banks at beginning of period............ 10,310,839 12,208,408 ------------ ------------- Cash and due from banks at end of period.................. $ 8,283,042 $ 10,139,353 ============ ============= SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash payments for: Interest.................................................. $3,269,689 $2,850,903 Income taxes.............................................. 0 0 </TABLE> See accompanying notes - 3 -
<TABLE> <CAPTION> _____________________________________________________________________________________________________________________________ OLD POINT FINANCIAL CORPORATION STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) Accumulated Other Total Common Stock Par Capital Retained Comprehensive Stockholder's Shares Value Surplus Earnings Income(Loss) Equity ______________________________________________________________________________________________________________________________ FOR THREE MONTHS ENDED MARCH 31, 1999 <S> <C> <C> <C> <C> <C> <C> Balance at beginning of period.......... 2,575,444 $12,877,220 $10,020,066 $16,284,552 $831,157 $40,012,995 Comprehensive Income Net income............................ 0 0 0 1,248,408 0 1,248,408 Increase (decrease) in unrealized gain on investment securities......... 0 0 0 0 167,388 167,388 ------ ------ ------ ------ ------ ------ Total Comprehensive Income............ 1,248,408 167,388 1,415,796 Sale of common stock.................... 800 4,000 22,568 (10,768) 0 15,800 Cash dividends............... .......... 0 0 0 (334,912) 0 (334,912) ------ ------ ------ ------ ------ ------ Balance at end of period................ 2,576,244 $12,881,220 $10,042,634 $17,187,280 $998,545 $41,109,679 FOR THREE MONTHS ENDED MARCH 31, 1998 Balance at beginning of period.......... 2,566,172 $12,830,860 $ 9,693,301 $13,097,716 $710,591 $36,332,468 Comprehensive Income Net income............................ 0 0 0 1,172,946 0 1,172,946 Increase (decrease) in unrealized gain on investment securities......... 0 0 0 0 (103,058) (103,058) ------ ------ ------ ------ ------ ------ Total Comprehensive Income............ 1,172,946 (103,058) 1,069,888 Sale of common stock.................... 1,200 6,000 37,800 (22,050) 0 21,750 Cash dividends............... .......... 0 0 0 (282,280) 0 (282,280) ------ ------ ------ ------ ------ ------ Balance at end of period................ 2,567,372 $12,836,860 $ 9,731,101 $13,966,332 $607,533 $37,141,826 </TABLE> See accompanying notes -4-
OLD POINT FINANCIAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. The accounting and reporting policies of the Registrant conform to generally accepted accounting principles and to the general practices within the banking industry. The interim financial statements have not been audited; however, in the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial statements have been included. These adjustments include estimated provisions for bonus, profit sharing and pension plans that are settled at year-end. These financial statements should be read in conjunction with the financial statements included in the Registrant's 1998 Annual Report to Shareholders and Form 10-K. 2. Earnings per common share outstanding are computed by dividing income by the weighted average number of outstanding common shares for each period presented. -5-
<TABLE> <CAPTION> _____________________________________________________________________________________ OLD POINT FINANCIAL CORPORATION Parent only Balance Sheets March 31, December 31, (Unaudited) 1999 1998 _____________________________________________________________________________________ Assets <S> <C> <C> Cash in bank.................................. $ 18,025 $ 293,695 Investment Securities......................... 1,911,621 2,107,380 Total Loans................................... 0 0 Investment in Subsidiaries.................... 39,168,285 37,597,430 Other assets.................................. 13,048 14,490 ------------- ------------- Total Assets.................................. $ 41,110,979 $ 40,012,995 ============= ============= Liabilities and Stockholders' Equity Total Liabilities............................. $ 1,300 $ 0 Stockholders' Equity.......................... 41,109,679 40,012,995 ------------- ------------- Total Liabilities & Stockholders' Equity...... $ 41,110,979 $ 40,012,995 ============= ============= </TABLE> <TABLE> <CAPTION> _____________________________________________________________________________________ OLD POINT FINANCIAL CORPORATION Three Months Ended: Parent only Income Statements March 31, (Unaudited) 1999 1998 _____________________________________________________________________________________ Income <S> <C> <C> Cash dividends from Subsidiaries.............. $ 860,000 $ 300,000 Interest and fees on loans.................... 0 0 Interest income from investment securities.... 26,107 26,480 Gains (losses) from sale of investment securities.................................. 0 0 Other income.................................. 0 0 Total Income.................................. 886,107 326,480 ------------- ------------- Expenses Salaries and employee benefits................ 0 0 Other expenses................................ 22,665 21,788 ------------- ------------- Total Expenses................................ 22,665 21,788 Income before taxes & undistributed net income of subsidiaries................ 863,442 304,692 Income tax.................................... 1,300 1,500 Net income before undistributed ------------- ------------- net income of subsidiaries.................. 862,142 303,192 Undistributed net income of subsidiaries...... 386,266 869,754 ------------- ------------- Net Income.................................... $ 1,248,408 $ 1,172,946 ============= ============= </TABLE> - 6 -
<TABLE> <CAPTION> _____________________________________________________________________________________ OLD POINT FINANCIAL CORPORATION Three Months Ended: Parent only Statements of Cash Flows March 31, (Unaudited) 1999 1998 ____________________________________________________________________________________ Cash Flows from Operating Activities: <S> <C> <C> Net Income.................................... $ 1,248,408 $ 1,172,946 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidia (386,266) (869,754) Depreciation................................ 0 0 Gains(losses) on sale of securities [net]. 0 0 (Increase) Decrease in other assets....... 0 0 Increase (decrease) in other liabilities.. 1,300 1,500 ------------- ------------- Net cash provided by operating activities..... 863,442 304,692 Cash flows from investing activities: (Increase)decrease in investment securities... 200,000 0 Payments for investment in subsidiaries (1,020,000) 0 Repayment of loans by customers............... 0 0 ------------- ------------- Net cash provided by investing activities..... (820,000) 0 Cash flows from financing activities: Proceeds from issuance of common stock........ 15,800 21,750 Dividends paid................................ (334,912) (282,280) ------------- ------------- Net cash provided by financing activities..... (319,112) (260,530) Net increase (decrease) in cash & due from banks.................................. (275,670) 44,162 Cash & due from banks at beginning of period.. 293,695 289,230 ------------- ------------- Cash & due from banks at end of period........ $ 18,025 $ 333,392 ============= ============= </TABLE> -7-
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION The following discussion is intended to assist readers in understanding and evaluating the consolidated results of operations and financial condition of the Company. This discussion should be read in conjunction with the financial statements and other financial information contained elsewhere in this report. The analysis attempts to identify trends and material changes which occurred during the period presented. EARNINGS SUMMARY Net income was $1.25 million, or $0.48 per share in the first quarter of 1999 compared to $1.17 million or $0.46 per share in the same period of 1998. Return on average assets was 1.23% in the first quarter of 1999, and 1.32% for the comparable period in 1998. Return on average equity was 12.21% in the first quarter of 1999 and 12.65% for the first three months of 1998. NET INTEREST INCOME The principal source of earnings for the Company is net interest income. Net interest income is the difference between interest and fees generated by earning assets and interest expense paid to fund them. Net interest income, on a tax equivalent basis, was $4.16 million for the first quarter of 1999, up $275 thousand, or 7% from $3.88 million in the same period of 1998. The net interest yield decreased from 4.64% in 1998 to 4.34% in 1999. Tax equivalent interest income increased $613 thousand, or 9%, in the first quarter of 1999 from the first quarter of 1998. Average earning assets grew $48.81 million, or 15% in the first quarter of 1999 compared to the first quarter of 1998. Comparing the first quarter of 1999 to 1998 total average loans increased $19.90 million, or 9%, while average investment securities increased $36.88 million, or 37%. Certificates of deposit increased 15% and interest checking and savings accounts increased 16%. Interest expense increased $338 thousand, or 12%, in the first quarter of 1999 from the first quarter of 1998 while interest bearing liabilities increased 15% during the same period. The cost of funding liabilities decreased 13 basis points. Page 11 shows an analysis of average earning assets, interest bearing liabilities and rates and yields. PROVISION/ALLOWANCE FOR LOAN LOSSES Provision for loan losses is a charge against earnings necessary to maintain the allowance for loan losses at a level consistent with management's evaluation of the loan portfolio. The provision for loan losses remained constant at $150 thousand during the first quarter of 1999 compared to the same period in 1998. Loans charged off (net of recoveries) during in the first quarter of 1999 totaled $93 thousand compared to $195 thousand in 1998. During 1998 a large portion of the charge offs were in the installment loans to individuals portfolio which is comprised of loans to individuals for personal expenditures such as household furniture and appliances and automobiles. The Company has seen a reduction in this portfolio and corresponding charge-offs. -8-
The allowance for loan losses was $2.91 million or 1.18% of loans at March 31, 1999 and $2.63 million or 1.17% of loans at March 31, 1998. As of March 31, 1999, nonperforming assets were $653 thousand, down from $1.19 million on March 31, 1998. Nonperforming assets consist of loans in nonaccrual status and other real estate. The 1999 total consisted of other real estate of $414 thousand and $239 thousand in nonaccrual loans. The other real estate consisted of $354 thousand in a commercial property originally acquired as a potential branch site and now held for sale and $60 thousand in foreclosed real estate. Nonaccrual loans consisted of $127 thousand in commercial loans and $112 thousand in mortgage loans. The Company continues to aggressively deal with these credits and specific action plans have been developed for each of these classified loans to address any deficiencies. OTHER INCOME Other income increased $154 thousand, or 13% during the first quarter of 1999 over the same period in 1998. Trust Services fees increased 13% and service charges on deposit accounts increased 21% primarily due to an increase in fees in October 1998. OTHER EXPENSES Other expenses increased $285 thousand or 9% during the first quarter of 1999 over 1998. Salaries and employee benefits increased 12% due to annual increases and an increase in staffing. Occupancy expense increased $11 thousand, or 5% in 1999 primarily due to higher costs associated with the opening of a new office building. Furniture and Equipment expense decreased $3 thousand or 1% due to a reduction in repairs and service contracts. Other operating expenses increased $50 thousand or 7%. This increase is due primarily to an increase in consulting fees for improving efficiencies and documentation related to lending. ASSETS At March 31, 1999, the Company had total assets of $413.3 million, up 2% from $404.1 million at December 31, 1998. Total loans increased $11.8 million, or 5% and investment securities increased $2.0 million, or 1%, in 1999 from December 31, 1998. The Company acquired property in Norge, VA on which a full service branch office is being built. This office is scheduled to open in the third quarter of 1999. The Company also purchased an existing facility in Chesapeake, VA and plans to open a full service branch in the second quarter of 1999. INTEREST BEARING LIABILITIES Total deposits increased $2.3 million in 1999; and interest bearing demand notes to the United States Treasury increased $729 thousand, while repurchase agreements, used as a cash management vehicle by commercial customers, increased $3.0 million and fed funds purchased increased $1.4 million from December 1998. CAPITAL RESOURCES The Company's capital position remains strong as evidenced by the regulatory capital measurements. At March 31, 1999 the Tier I capital ratio was 14.67%, the total capital ratio was 15.74% and the leverage ratio was 9.85%. These ratios were all well above the regulatory minimum levels of 4.00%, 8.00%, and 3.00%, respectively. -9-
LIQUIDITY and INTEREST SENSITIVITY Liquidity is the ability of the Company to meet present and future obligations through the acquisition of additional liabilities or sale of existing assets. Management considers the liquidity of the Company to be adequate. Sufficient assets are maintained on a short-term basis to meet the liquidity demands anticipated by Management. In addition, secondary sources are available through the use of borrowed funds if the need should arise. The Company was liability sensitive as of March 31, 1999. There were $121.1 million more in liabilities than assets subject to repricing within three months. This generally indicates that net interest income should improve if interest rates fall since liabilities will reprice faster than assets. Conversely, if interest rates rise, net interest income should decline. It should be noted, however, that the savings deposits totaling $118.2 million; which consist of interest checking, money market, and savings accounts; are less interest sensitive than other market driven deposits. In a rising rate environment these deposit rates have historically lagged behind the changes in earning asset rates, thus mitigating somewhat the impact from the liability sensitivity position. The table on page 12 reflects the earlier of the maturity or repricing data for various assets and liabilities as of March 31, 1999. EFFECTS OF INFLATION Management believes that the key to achieving satisfactory performance in an inflationary environment is its ability to maintain or improve its net interest margin and to generate additional fee income. The Company's policy of investing in and funding with interest-sensitive assets and liabilities is intended to reduce the risks inherent in a volatile inflationary economy. YEAR 2000 The "Year 2000" problem relates to the fact that many computer programs use two digits to define a year and assume that the century is 1900. Therefore, these programs will not recognize the turn of the century. For example, the year 1998 is defined as "98" and the year 2003 is defined as "03". Because the assumed century is 1900 computers recognize the year 2003, defined as "03", as 1903. The Company is aware of the Year 2000 problem and is taking action to ensure that all of its computer hardware and software will be Year 2000 compliant. The Company continues to work on its five phase plan which conforms to the standards established by the Federal Financial Institutions Examination Council (FFIEC). The Company is on target to substantially complete its five phase plan for existing hardware and software by June 30, 1999. Any new hardware or software will be tested for year 2000 compliance. The core application software which processes loans, deposits and general ledger has been successfully tested for Year 2000 compliance by the vendor Fiserv. The Company has also successfully tested the core applications for Year 2000 compliance. The company budgeted $250 thousand in capital expenditures and $75 thousand for operating expenses for Year 2000 related expenditures in 1999. The Office of the Comptroller of the Currency (OCC) is responsible for examining the Bank for compliance to the regulatory standards. The internal audit department has completed an audit verifying and validating the processes the Company uses to test the applications. A more detailed discussion of the Company's Year 2000 efforts has been submitted to the Securities and Exchange Commission in its 1998 Form 10K. -10-
<TABLE> <CAPTION> OLD POINT FINANCIAL CORPORATION NET INTEREST INCOME ANALYSIS For the quarter ended March 31, (Fully taxable equivalent basis)* 1999 1998 _________________________________________________________________________________________________________________ Average Average Interest Rates Interest Rates Average Income/ Earned/ Average Income/ Earned/ Dollars in thousands Balance Expense Paid Balance Expense Paid _________________________________________________________________________________________________________________ <S> <C> <C> <C> <C> <C> <C> Loans (net of unearned income)**....... $241,357 5,131 8.50% $221,462 4,941 8.92% Investment securities: Taxable.............................. 84,631 1,271 6.01% 72,872 1,124 6.17% Tax-exempt........................... 52,484 962 7.33% 27,364 565 8.26% -------- ------ ----------- ------ Total investment securities........ 137,115 2,233 6.51% 100,236 1,689 6.74% Federal funds sold..................... 5,036 61 4.85% 13,001 182 5.60% -------- ------ ----------- ------ Total earning assets................. $383,508 $7,425 7.74% $334,699 $6,812 8.14% Time and savings deposits: Interest-bearing transaction accounts $ 3,924 $23 2.34% $20,035 $105 2.10% Money market deposit accounts........ 91,767 693 3.02% 59,385 471 3.17% Savings accounts..................... 26,676 180 2.70% 26,066 176 2.70% Certificates of deposit, $100,000 or more............................ 27,161 364 5.36% 24,195 358 5.92% Other certificates of deposit........ 132,382 1,761 5.32% 114,840 1,557 5.42% -------- ------ ----------- ------ Total time and savings deposits.... 281,910 3,021 4.29% 244,522 2,667 4.36% Federal funds purchased and securities sold under agreement to repurchase... 22,907 229 4.00% 19,812 234 4.72% Other short term borrowings............ 1,231 17 5.52% 1,821 28 6.15% -------- ------ ----------- ------ Total interest bearing liabilities... $306,048 3,267 4.27% $266,155 2,929 4.40% Net interest income/yield.............. $4,158 4.34% $3,883 4.64% ===== ===== * Tax equivalent yields based on 34% tax rate. ** Nonaccrual loans are included in the average loan balances and income on such loans is recognized on a cash ba </TABLE> -11-
[CAPTION] <TABLE> ____________________________________________________________________________________________ INTEREST SENSITIVITY ANALYSIS As of March 31, 1999 MATURITY (in thousands) Within 4-12 1-5 Over 5 3 Months Months Years Years Total ____________________________________________________________________________________________ Uses of funds <S> <C> <C> <C> <C> <C> Federal funds sold.................. 3,097 -- -- -- 3,097 Taxable investments................. 8,515 1,519 46,672 27,405 84,111 Tax-exempt investments.............. -- 689 5,008 49,671 55,368 ----- ----- ----- ----- ----- Total investments................. 11,612 2,208 51,680 77,076 142,576 Loans: Commercial........................ 22,024 1,604 41,102 3,962 68,692 Tax-exempt........................ 784 28 237 2,037 3,086 Installment....................... 3,703 2,632 48,435 4,776 59,546 Real estate....................... 19,466 7,203 61,266 27,554 115,489 Other............................. 314 -- 516 0 830 ----- ----- ----- ----- ----- Total loans......................... 46,291 11,467 151,556 38,329 247,643 ----- ----- ----- ----- ----- Total earning assets................ 57,903 13,675 203,236 115,405 390,219 Sources of funds Interest checking deposits.......... 29,192 -- -- -- 29,192 Money market deposit accounts....... 62,434 -- -- -- 62,434 Regular savings accounts............ 26,587 -- -- -- 26,587 Certificates of deposit............. $100,000 or more.................. 7,914 8,629 9,693 -- 26,236 Other time deposits................. 30,295 41,671 44,066 -- 116,032 Federal funds purchased and securities sold under agreements to repurchase.......... 19,136 -- -- -- 19,136 Other borrowed money................ 3,442 -- 23 -- 3,465 ----- ----- ----- ----- ----- Total interest bearing liabilities.. 179,000 50,300 53,782 0 283,082 Rate sensitivity GAP................ (121,097) (36,625) 149,454 115,405 107,137 Cumulative GAP...................... (121,097) (157,722) (8,268) 107,137 </TABLE> -12-
PART II - OTHER INFORMATION Item 6. EXHIBITS AND REPORTS ON FORM 8-K (a) none (b) A report on Form 8-K was filed on April 9, 1999 with the Securities and Exchange Commission regarding the Company's announcement of its Trust Department spin-off.
SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. OLD POINT FINANCIAL CORPORATION May 13, 1999 By: \s\Robert F. Shuford ____________________ Robert F. Shuford President and Director Principal Executive Officer By: \s\Louis G. Morris ___________________ Louis G. Morris Senior Vice President and Treasurer Principal Financial and Accounting Officer