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, 2000 ------------------------------------------- [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITES EXCHANGE ACT of 1934 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 May 1, 2000. Class Outstanding at May 1, 2000 Common Stock, $5.00 par value 2,583,401 shares
OLD POINT FINANCIAL CORPORATION FORM 10-Q INDEX PART I - FINANCIAL INFORMATION Page Item 1. Financial Statements........................................1 Consolidated Balance Sheets March 31, 2000 and December 31, 1999..................1 Consolidated Statement of Earnings Three months ended March 31, 2000 and 1999............2 Consolidated Statement of Cash Flows Three months ended March 31, 2000 and 1999............3 Consolidated Statements of Changes in Stockholders' Equity Three months ended March 31, 2000 and 1999............4 Notes to Consolidated Financial Statements.....................5 Parent Only Balance Sheets March 31, 2000 and December 31, 1999..................6 Parent Only Statement of Earnings Three months ended March 31, 2000 and 1999............6 Parent Only Statement of Cash Flows Three months ended March 31, 2000 and 1999............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> - ----------------------------------------------------------------------------------------------- OLD POINT FINANCIAL CORPORATION March 31, December 31, Consolidated Balance Sheets 2000 1999 Unaudited ----------------------------------- Assets <S> <C> <C> Cash and due from banks.................................. $ 11,046,616 $ 10,226,423 Interest bearing balances due from banks 82,078 173,914 Investments: Securities available for sale, at market............... 80,763,189 81,146,906 Securities to be held to maturity...................... 45,834,722 45,838,726 Trading account securities............................... 0 0 Federal funds sold....................................... 9,852,280 241,055 Loans, total ............................................ 294,306,321 281,646,439 Less reserve for loan losses......................... 3,235,561 3,110,804 Net loans........................................ 291,070,760 278,535,635 Bank premises and equipment.............................. 14,284,902 14,323,764 Other real estate owned.................................. 353,864 353,864 Other assets............................................. 5,516,009 5,453,316 ------------ ------------ Total assets........................................ $458,804,420 $436,293,603 ============ ============ Liabilities Noninterest-bearing deposits............................. $ 75,617,352 $63,005,586 Savings deposits......................................... 130,889,083 128,763,117 Time deposits............................................ 164,818,872 169,148,814 ----------- ----------- Total deposits........................................ 371,325,307 360,917,517 Federal funds purchased and securities sold under agreement to repurchase.............................. 23,263,512 22,840,778 Interest-bearing demand notes issued to the United States Treasury and other liabilities for borrowed money..... 3,594,089 3,317,437 Federal Home Loan Bank................................... 17,000,000 7,000,000 Other liabilities........................................ 1,963,350 1,404,194 ----------- ----------- Total liabilities..................................... 417,146,258 395,479,926 Stockholders' Equity Common stock, $5.00 par value............................ $12,917,005 $12,916,310 2000 1999 Shares authorized.......6,000,000 6,000,000 Shares outstanding... 2,583,401 2,576,244 Surplus.................................................. 10,188,069 10,185,985 Undivided profits........................................ 20,525,200 19,674,272 Unrealized gain/(loss) on securities..................... (1,972,112) (1,962,890) ----------- ------------ Total stockholders' equity........................... 41,658,162 40,813,677 ------------ ------------ Total liabilities and stockholders' equity........... $458,804,420 $436,293,603 ============ ============ </TABLE> 1
<TABLE> <CAPTION> - ------------------------------------------------------------------------------------------- OLD POINT FINANCIAL CORPORATION Three Months Ended Consolidated Statements of Earnings March 31 Unaudited 2000 1999 ------------------------------ Interest Income <S> <C> <C> Interest and fees on loans............................... $5,946,342 $5,115,115 Interest on federal funds sold........................... 19,441 61,400 Interest on securities: Interest on United States Treasury securities (taxable).. 15,900 69,440 Interest on obligations of other United States Government agencies (taxable)............ 977,446 1,119,725 Interest on obligations of states and political subdivisions (tax exempt).................... 692,534 634,740 Interest on trading account securities................... 0 0 Dividends and interest on all other securities........... 101,414 81,935 ---------- ---------- Total interest on securities....................... 1,806,735 1,905,840 Trading account securities............................... 0 0 ---------- ---------- Total interest income................................ 7,753,077 7,082,355 Interest Expense Interest on savings deposits............................. 974,627 895,963 Interest on time deposits................................ 2,250,474 2,124,800 Interest on federal funds purchased and securities sold under agreement to repurchase..................... 289,434 238,340 Interest on Federal Home Loan Bank advances 170,083 0 Interest on demand notes (note balances) issued to the United States Treasury and on other borrowed money..... 26,724 16,819 ---------- ---------- Total interest expense............................... 3,711,342 3,275,922 Net interest income...................................... 4,041,735 3,806,433 Provision for loan losses................................ 175,000 150,000 ---------- ---------- Net interest income after provision for loan losses...... 3,866,735 3,656,433 Other Income Income from fiduciary activities......................... 630,000 509,850 Service charges on deposit accounts...................... 541,275 525,333 Other service charges, commissions and fees.............. 206,533 206,926 Other operating income................................... 51,870 83,457 Security gains (losses).................................. 0 0 Trading account income................................... 0 0 ---------- ---------- Total other income................................... 1,429,678 1,325,566 Other Expenses Salaries and employee benefits........................... 2,305,851 2,070,713 Occupancy expense of Bank premises....................... 266,368 230,145 Furniture and equipment expense.......................... 375,875 287,499 Other operating expenses................................. 845,950 793,934 ---------- ---------- Total other expenses................................. 3,794,044 3,382,291 ---------- ---------- Income before taxes...................................... 1,502,369 1,599,708 Applicable income taxes ................................. 287,000 351,300 ---------- ---------- Net income............................................... $1,215,369 $1,248,408 ========== ========== Per Share Based on weighted average number of common shares outstanding.............................. 2,583,396 2,576,826 Basic Earnings per Share 0.47 0.48 Diluted Earnings per Share 0.47 0.48 </TABLE> 2
<TABLE> <CAPTION> - ----------------------------------------------------------------------------------------------------------- OLD POINT FINANCIAL CORPORATION Three Months Ended Consolidated Statements of Cash Flows March 31, Unaudited 2000 1999 <S> ------------------------- CASH FLOWS FROM OPERATING ACTIVITIES <C> <C> Net income................................................................. $ 1,215,369 $ 1,248,408 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization............................................ 327,688 265,611 Provision for loan losses................................................ 175,000 150,000 (Gains) loss on sale of investment securities, net....................... 0 0 Net amortization & accretion of securities .............................. 18,251 32,182 Net (increase) decrease in trading account............................... 0 0 (Increase) in other real estate owned.................................... 0 (215,056) (Increase) decrease in other assets (net of tax effect of FASB 115 adjustment).............................. (57,941) (200,070) Increase (decrease) in other liabilities................................. 559,156 570,088 ------------ ------------ Net cash provided by operating activities.............................. 2,237,523 1,851,163 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of securities ................................................. (119,504) (13,270,472) Proceeds from maturities & calls of securities .......................... 475,000 11,500,000 Proceeds from sales of available - for - sale securities................. 0 0 Proceeds from sales of held - to - maturity securities................... 0 0 Loans made to customers.................................................. (39,185,829) (35,038,614) Principal payments received on loans..................................... 26,475,704 23,167,703 Proceeds from sales of other real estate owned........................... 0 285,056 Purchases of premises and equipment...................................... (288,826) (1,151,000) (Increase) decrease in federal funds sold................................ (9,611,225) 3,480,469 ------------ ------------ Net cash provided by (used in) investing activities.................... (22,254,680) (11,026,858) CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in non-interest bearing deposits..................... 12,611,766 (4,247,481) Increase (decrease) in savings deposits.................................. 2,125,966 1,116,617 Proceeds from the sale of certificates of deposit........................ 12,649,748 11,637,876 Payments for maturing certificates of deposit............................ (16,979,690) (6,179,920) Increase (decrease) in federal funds purchased & repurchase agreements................................................... 422,734 4,411,346 Increase (decrease) in Federal home Loan Bank Advances.................. 10,000,000 0 Increase (decrease) in other borrowed money.............................. 276,652 728,572 Proceeds from issuance of common stock................................... 14 15,800 Dividends paid........................................................... (361,676) (334,912) ------------ ------------ Net cash provided by financing activities.............................. 20,745,514 7,147,898 Net increase (decrease) in cash and due from banks..................... 728,357 (2,027,797) Cash and due from banks at beginning of period......................... 10,400,337 10,310,839 ------------ ------------ Cash and due from banks at end of period............................... $ 11,128,694 $ 8,283,042 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash payments for: Interest............................................................... $ 3,657,156 $ 3,269,689 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, 2000 <S> <C> <C> <C> <C> <C> <C> Balance at beginning of period.............. 2,583,262 $12,916,310 $10,185,985 $19,674,272 $(1,962,890) $40,813,677 Comprehensive Income Net income................................ 0 0 0 1,215,369 0 1,215,369 Increase (decrease) in unrealized gain on investment securities............. 0 0 0 0 (9,222) (9,222) --------- ---------- ----------- ----------- ----------- ----------- Total Comprehensive Income................ 1,215,369 (9,222) 1,206,147 Sale of common stock........................ 139 695 2,084 (2,765) 0 14 Cash dividends............... .............. 0 0 0 (361,676) 0 (361,676) --------- ---------- ----------- ----------- ----------- ----------- Balance at end of period.................... 2,583,401 $12,917,005 $10,188,069 $20,525,200 $(1,972,112) $41,658,162 <CAPTION> 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 </TABLE> See accompanying note 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 2000 Annual Report to Shareholders and Form 10-K. 2. Basic earnings per common share outstanding are computed by dividing income by the weighted average number of outstanding common shares for each period presented. Diluted earnings per share are computed using the treasury stock method. 3. Certain amounts in the financial statements have been reclassified to conform with classifications adopted in the current year. 5
<TABLE> <CAPTION> - -------------------------------------------------------------------------------------- OLD POINT FINANCIAL CORPORATION Parent only Balance Sheets March 31, December 31, Unaudited 2000 1999 - -------------------------------------------------------------------------------------- <S> <C> <C> Assets Cash in bank.......................................... $ 28,001 $ 59,502 Investment Securities................................. 2,075,000 2,105,000 Total Loans........................................... 0 0 Investment in Subsidiaries............................ 39,453,779 38,550,254 Other assets.......................................... 101,382 25,361 ----------- ----------- Total Assets.......................................... $41,658,162 $40,740,117 =========== =========== Liabilities and Stockholders' Equity Total Liabilities..................................... $ 0 $ 0 Stockholders' Equity.................................. 41,658,162 40,740,117 ----------- ----------- Total Liabilities & Stockholders' Equity.............. $41,658,162 $40,740,117 =========== =========== </TABLE> <TABLE> <CAPTION> - ------------------------------------------------------------------------------------- OLD POINT FINANCIAL CORPORATION Three Months Ended: Parent only Income Statements March 31, Unaudited 2000 1999 - ------------------------------------------------------------------------------------- <S> <C> <C> Income Cash dividends from Subsidiaries...................... $ 400,000 $ 860,000 Interest and fees on loans............................ 0 0 Interest income from investment securities............ 28,973 26,107 Gains (losses) from sale of investment securities..... 0 0 Other income.......................................... 36,000 0 ----------- ---------- Total Income.......................................... 464,973 886,107 Expenses Salaries and employee benefits........................ 61,570 0 Other expenses........................................ 47,221 22,665 ----------- ---------- Total Expenses........................................ 108,791 22,665 Income before taxes & undistributed net income of subsidiaries........................ 356,182 863,442 Income tax............................................ (20,000) 1,300 Net income before undistributed net income of subsidiaries.......................... 376,182 862,142 Undistributed net income of subsidiaries.............. 839,187 386,266 ----------- ----------- Net Income............................................ $ 1,215,369 $ 1,248,408 =========== =========== </TABLE> 6
<TABLE> <CAPTION> - ------------------------------------------------------------------------------------ OLD POINT FINANCIAL CORPORATION Three Months Ended: Parent only Statements of Cash Flows March 31, Unaudited 2000 1999 - ------------------------------------------------------------------------------------ <S> <C> <C> Cash Flows from Operating Activities: Net Income............................................ $ 1,215,369 $ 1,248,408 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiaries.... (839,187) (86,266) Depreciation........................................ 0 0 Gains(losses) on sale of securities [net]......... 0 0 (Increase) Decrease in other assets............... (76,021) 0 Increase (decrease) in other liabilities.......... 0 1,300 -------- --------- Net cash provided by operating activities............. 300,161 863,442 Cash flows from investing activities: (Increase)decrease in investment securities........... 30,000 200,000 Payments for investment in subsidiaries 0 (1,020,000) Repayment of loans by customers....................... 0 0 -------- --------- Net cash provided by investing activities............. 30,000 (820,000) Cash flows from financing activities: Proceeds from issuance of common stock................ 14 15,800 Dividends paid........................................ (361,676) (334,912) -------- --------- Net cash provided by financing activities............. (361,662) (319,112) Net increase (decrease) in cash & due from banks...... (31,501) (275,670) Cash & due from banks at beginning of period.......... 59,502 293,695 -------- --------- Cash & due from banks at end of period................ $ 28,001 $ 18,025 =========== =========== </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 $1.22 million, or $0.47 per share in the first quarter of 2000 compared to $1.25 million or $0.48 per share in the same period of 1999. Return on average assets was 1.11% in the first quarter of 2000, and 1.23% for the comparable period in 1999. Return on average equity was 11.85% in the first quarter of 2000 and 12.21% for the first three months of 1999. 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 $4.37 million for the first quarter of 2000, up $270 thousand, or 7% from $4.10 million in the same period of 1999. The net interest yield decreased from 4.27% in 1999 to 4.20% in 2000. Tax equivalent interest income increased $705 thousand, or 10%, in the first quarter of 2000 from the first quarter of 1999. Average earning assets grew $33 million, or 9% in the first quarter of 2000 compared to the first quarter of 1999. Comparing the first quarter of 2000 to 1999 total average loans increased $44 million, or 18%, while average investment securities decreased $7 million, or 5%. Certificates of deposit increased 4% and interest checking and savings accounts increased 6%. Interest expense increased $446 thousand, or 14%, in the first quarter of 2000 from the first quarter of 1999 while interest bearing liabilities increased 9% during the same period. The cost of funding liabilities increased 18 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 increased to $175 thousand during the first quarter of 2000 compared to $150 thousand for the same period in 1999. The increase is due to the average loan growth of $44 million. Loans charged off (net of recoveries) during the first quarter of 2000 totaled $50 thousand compared to $93 thousand in 1999. During the 1st quarter of 1999 the net charge-offs were attributed to accrual, real estate and installment loans. The 2000 net charge-offs are attributed to the installment loans to individuals portfolio which is comprised of loans to individuals for personal expenditures such as household furniture and appliances and automobiles. 8
The allowance for loan losses was $3.24 million or 1.10% of loans at March 31, 2000 and $2.91 million or 1.18% of loans at March 31, 1999. As of March 31, 2000, non-performing assets were $847 thousand, up from $653 thousand on March 31, 1999. Non-performing assets consist of loans in nonaccrual status and other real estate. The 2000 total consisted of other real estate of $354 thousand and $493 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. Non- accrual loans consisted of $229 thousand in commercial loans and $264 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 $104 thousand, or 8% during the first quarter of 2000 over the same period in 1999. The increase is due to higher Trust Services fee income and higher service charges on deposit accounts. OTHER EXPENSES Other expenses increased $412 thousand or 12% during the first quarter of 2000 over 1999. Salaries and employee benefits increased 11% due to annual increases and an increase in staffing. Occupancy expense increased $36 thousand, or 16% in 2000 primarily due to higher costs associated with the opening of two new branches, expansion of an existing branch and the purchase of two office buildings. Furniture and Equipment expense increased $88 thousand or 31% due to the new branches and office buildings. Other operating expenses increased $52 thousand or 7%. ASSETS At March 31, 2000, the Company had total assets of $458.8 million, up 5% from $436.3 million at December 31, 1999. Total loans increased $13 million, or 3% and investment securities decreased $388 thousand. INTEREST BEARING LIABILITIES Total deposits increased $10 million in 2000; and interest bearing demand notes to the United States Treasury increased $274 thousand, while repurchase agreements, used as a cash management vehicle by commercial customers, increased $2.8 million and there were no fed funds purchased. Federal Home Loan Bank advances increased $10 million from December 31, 1999. CAPITAL RESOURCES The Company's capital position remains strong as evidenced by the regulatory capital measurements. At March 31, 2000 the Tier I capital ratio was 13.82%, the total capital ratio was 14.85% and the leverage ratio was 9.76%. 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, 2000. There were $130.3 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 $130.9 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, 2000. 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 Company is not aware of any Y2K related problems during the first quarter of 2000. 10
<TABLE> <CAPTION> - --------------------------------------------------------------------------------------------------------------- OLD POINT FINANCIAL CORPORATION NET INTEREST INCOME ANALYSIS For the quarter ended March 31, (Fully taxable equivalent basis)* 2000 1999 - --------------------------------------------------------------------------------------------------------------- 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)**............ $285,206 5,965 8.36% $241,357 5,130 8.50% Investment securities: Taxable................................... 72,761 1,094 6.01% 84,631 1,271 6.01% Tax-exempt................................ 57,322 1,002 6.99% 52,484 912 6.95% -------- ----- -------- ----- Total investment securities............. 130,083 2,096 6.45% 137,115 2,183 6.37% Federal funds sold.......................... 1,264 19 6.01% 5,036 61 4.85% -------- ----- -------- ----- Total earning assets...................... $416,553 $8,080 7.76% $383,508 $7,374 7.69% Time and savings deposits: Interest-bearing transaction accounts..... $4,012 $ 24 2.39% $ 3,924 $ 23 2.34% Money market deposit accounts............. 96,943 757 3.12% 91,767 693 3.02% Savings accounts.......................... 28,552 194 2.72% 26,676 180 2.70% Certificates of deposit, $100,000 or more. 31,494 425 5.40% 27,161 364 5.36% Other certificates of deposit............. 134,995 1,825 5.41% 132,382 1,761 5.32% -------- ----- -------- ----- Total time and savings deposits......... 295,996 3,225 4.36% 281,910 3,021 4.29% Federal funds purchased and securities sold under agreement to repurchase............. 24,322 289 4.75% 22,907 238 4.16% Federal Home Loan Bank advances 11,892 170 5.72% 0 0 Other short term borrowings................. 1,918 27 5.63% 1,231 17 5.52% -------- ----- -------- ----- Total interest bearing liabilities........ $334,128 3,711 4.44% $306,048 3,276 4.28% Net interest income/yield................... $4,369 4.20% $4,098 4.27% ====== ====== </TABLE> * Tax equivalent yields based on 34% tax rate, reduced by non-deductible portion of interest expense. ** Nonaccrual loans are included in the average loan balances and income on such loans is recognized on a cash basis. 11
<TABLE> <CAPTION> - ------------------------------------------------------------------------------------------------------ INTEREST SENSITIVITY ANALYSIS As of March 31, 2000 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..................... 9,852 0 0 0 9,852 Taxable investments.................... 5,096 3,633 55,375 7,011 71,115 Tax-exempt investments................. 0 1,500 5,614 48,369 55,483 ------- ------- ------- ------- ------- Total investments.................... 14,948 5,133 60,989 55,380 136,450 Loans: Commercial........................... 25,231 1,431 33,679 3,404 63,745 Tax-exempt........................... 983 0 0 2,649 3,632 Installment.......................... 4,636 2,517 55,369 7,104 69,626 Real estate.......................... 20,477 5,472 87,743 42,777 156,469 Other................................ 252 0 582 0 834 ------- ------- ------- ------- ------- Total loans............................ 51,579 9,420 177,373 55,934 294,306 ------- ------- ------- ------- ------- Total earning assets................... 66,527 14,553 238,362 111,314 430,756 Sources of funds Interest checking deposits............. 4,485 0 0 0 4,485 Money market deposit accounts.......... 97,101 0 0 0 97,101 Regular savings accounts............... 29,303 0 0 0 29,303 Certificates of deposit................ $100,000 or more..................... 4,800 17,406 8,584 0 30,790 Other time deposits.................... 34,290 45,412 54,327 0 134,029 Federal funds purchased and securities sold under agreements to repurchase............. 23,264 0 0 0 23,264 Other borrowed money................... 3,594 5,000 5,000 7,000 20,594 ------- ------- ------- ------- ------- Total interest bearing liabilities..... 196,837 67,818 67,911 7,000 339,566 Rate sensitivity GAP................... (130,310) (53,265) 170,451 104,314 91,190 Cumulative GAP......................... (130,310) (183,575) (13,124) 91,190 </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 January 24, 2000 with the Securities and Exchange Commission regarding the Company's announcement of approval by the Board of Directors to repurchase up to 5% of the corporations common stock. A report on Form 8-K was filed on February 18, 2000 with the Securities and Exchange Commission announcing the death of Gertrude Dixon a Company Board member. 13
SIGNATURES In accordance with the requirements of the Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. OLD POINT FINANCIAL CORPORATION May 12, 2000 By: /s/Louis G. Morris ____________________________ Louis G. Morris Executive Vice President and Chief Financial Officer By: /s/Laurie D. Grabow _____________________ Laurie D Grabow Senior Vice President Finance 14