SECURITIES AND EXCHANGE COMMISSION PRIVATE
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, 1998
[ ] 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, 1998.
Class Outstanding at April 30, 1998
Common Stock, $5.00 par value 2,567,372 shares
<PAGE>
OLD POINT FINANCIAL CORPORATION
FORM 10-Q
INDEX
PART I - FINANCIAL INFORMATION
Page
Item 1. Financial Statements..............................................1
Consolidated Balance Sheets
March 31, 1998 and December 31, 1997......................1
Consolidated Statement of Earnings
Three months ended March 31, 1998 and 1997................2
Consolidated Statement of Cash Flows
Three months ended March 31, 1998 and 1997................3
Consolidated Statements of Changes in Stockholders' Equity
Three months ended March 31, 1998 and 1997................4
Notes to Consolidated Financial Statements........................5
Parent Only Balance Sheets
March 31, 1998 and December 31, 1997..............6
Parent Only Statement of Earnings
Three months ended March 31, 1998 and 1997........6
Parent Only Statement of Cash Flows
Three months ended March 31, 1998 and 1997........7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.......................8
Analysis of Changes in Net Interest Income................9
Interest Sensitivity Analysis............................12
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.................................13
(i)
<PAGE>
<TABLE>
<CAPTION>
PART 1. - FINANCIAL INFORMATION
OLD POINT FINANCIAL CORPORATION
Consolidated Balance Sheets March 31, December 31,
(Unaudited) 1998 1997
<S> <C> <C>
Assets
Cash and due from banks...................... $10,110,121 $12,114,450
Interest bearing balances due from banks..... 29,232 93,958
Securities available for sale, at market..... 66,682,747 67,546,008
Securities to be held to maturity............ 48,974,450 28,979,825
Trading account securities................... 0 0
Federal funds sold........................... 21,073,706 6,977,386
Loans, total................................. 224,372,664 221,743,937
Less reserve for loan losses............. 2,626,302 2,671,174
----------- -----------
Net loans............................ 221,746,362 219,072,763
Bank premises and equipment.................. 10,670,671 9,742,209
Other real estate owned...................... 579,773 773,864
Other assets................................. 3,870,374 3,370,689
----------- ------------
Total assets............................ $383,737,436 $348,671,152
============ ============
Liabilities
Noninterest-bearing deposits................. $61,749,716 $52,359,579
Savings deposits............................. 118,190,292 99,991,102
Time deposits................................ 142,267,840 134,749,126
----------- -----------
Total deposits............................ 322,207,848 287,099,807
Federal funds purchased and securities sold
under agreement to repurchase............ 19,136,224 20,164,902
Interest-bearing demand notes issued to the
United States Treasury and other
liabilities for borrowed money............ 3,464,234 4,025,090
--------- ---------
Other liabilities............................ 1,787,304 1,048,885
Total liabilities......................... $346,595,610 $312,338,684
Stockholders' Equity
Common stock, $5.00 par value................ 12,836,860 12,830,860
1998 1997
Shares authorized.............6,000,000 6,000,000
Shares outstanding............2,567,372 2,566,172
Surplus...................................... 9,731,101 9,693,301
Undivided profits............................ 13,966,332 13,097,716
Unrealized gain/(loss) on securities ........ 607,533 710,591
---------- ----------
Total stockholders' equity................... 37,141,826 36,332,468
Total liabilities and stockholders' equity... $383,737,436 $348,671,152
============ ============
See accompanying notes
- 1 -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
OLD POINT FINANCIAL CORPORATION Three Months Ended
Consolidated Statements of Earnings March 31,
(Unaudited) 1998 1997
Interest Income
<S> <C> <C>
Interest and fees on loans................... $4,923,323 $4,405,873
Interest on federal funds sold............... 182,156 40,426
Interest on securities:
Taxable................................... 1,125,681 1,110,912
Exempt from Federal income tax............ 372,649 273,600
--------- ---------
Total interest on securities........... 1,498,330 1,384,512
--------- ---------
Total interest income.................... 6,603,809 5,830,811
Interest Expense
Interest on savings deposits................. 752,215 673,047
Interest on time deposits.................... 1,915,351 1,611,586
Interest on federal funds purchased and
securities sold under agreement to repurchase 233,701 185,349
Interest on demand notes (note balances)
issued to the United States Treasury and
on other borrowed money 27,810 22,167
--------- ---------
Total interest expense................... 2,929,077 2,492,149
Net interest income.......................... 3,674,732 3,338,662
Provision for loan losses.................... 150,000 100,000
--------- ---------
Net interest income after provision
for loan.................................... 3,524,732 3,238,662
Other Income
Income from fiduciary activities............. 449,850 434,850
Service charges on deposit accounts.......... 432,726 422,990
Other service charges, commissions and fees.. 200,190 121,930
Other operating income....................... 88,783 115,680
Security gains (losses)...................... 0 (707)
Trading account income....................... 0 0
--------- ---------
Total other income....................... 1,171,549 1,094,743
Other Expenses
Salaries and employee benefits............... 1,843,527 1,874,845
Occupancy expense of Bank premises........... 218,767 212,181
Furniture and equipment expense.............. 290,978 273,604
Other operating expenses..................... 743,563 714,040
--------- ---------
Total other expenses..................... 3,096,835 3,074,670
--------- ---------
Income before taxes.......................... 1,599,446 1,258,735
Applicable income taxes ..................... 426,500 324,176
---------- ---------
Net income................................... $1,172,946 $934,559
Per Share
Based on weighted average number of
common shares outstanding.................. 2,566,185 2,550,514
Basic Earnings per Share $0.46 $0.37
Diluted Earnings per Share $0.45 $0.37
See accompanying notes
2
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
OLD POINT FINANCIAL CORPORATION Three Months Ended
Consolidated Statements of Cash Flows March 31,
(Unaudited) 1998 1997
------------ -------------
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income................................................. $ 1,172,946 $ 934,559
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization............................ 238,834 239,158
Provision for loan losses................................ 150,000 100,000
(Gains) loss on sale of investment securities, net....... 0 707
Net amortization & accretion of securities available
for sale................................................ 28,938 131,311
Net (increase) decrease in trading account............... 0 0
(Increase) in other real estate owned.................... (175,909) (215,000)
(Increase) decrease in other assets
(net of tax effect of FASB 115 adjustment)............. (446,595) (146,512)
Increase (decrease) in other liabilities................. 738,419 490,540
------------ -------------
Net cash provided by operating activities.............. 1,706,633 1,534,764
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of securities ................................. (31,359,451) (1,059,860)
Proceeds from maturities & calls of securities .......... 12,043,000 2,594,000
Proceeds from sales of available - for - sale securities. 0 2,000,312
Proceeds from sales of held - to - maturity securities... 0 0
Loans made to customers.................................. (28,661,487) (23,816,444)
Principal payments received on loans..................... 25,837,888 19,517,335
Proceeds from sales of other real estate owned........... 370,000 0
Purchases of premises and equipment...................... (1,167,296) (197,610)
(Increase) decrease in federal funds sold................ (14,096,320) (12,339,020)
------------ -------------
Net cash provided by (used in) investing activities.... (37,033,666) (13,301,287)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in non-interest bearing deposits..... 9,390,137 1,953,863
Increase (decrease) in savings deposits.................. 18,199,190 2,710,676
Proceeds from the sale of certificates of deposit........ 17,276,680 11,065,275
Payments for maturing certificates of deposit............ (9,757,966) (6,589,496)
Increase (decrease) in federal funds purchased &
repurchase agreements................................... (1,028,678) (707,499)
Increase (decrease) in other borrowed money.............. (560,856) 1,730,748
Proceeds from issuance of common stock................... 21,750 142,100
Dividends paid........................................... (282,279) (255,052)
------------ -------------
Net cash provided by financing activities.............. 33,257,978 10,050,615
Net increase (decrease) in cash and due from banks..... (2,069,055) (1,715,909)
Cash and due from banks at beginning of period......... 12,208,408 10,988,495
------------ -------------
Cash and due from banks at end of period............... $ 10,139,353 $ 9,272,586
============ =============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for:
Interest............................................... $2,850,903 $2,479,767
Income taxes........................................... 0 0
See accompanying notes
- 3 -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
OLD POINT FINANCIAL CORPORATION
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(Unaudited)
Unrealized
Common Stock Undivided Gain/(Loss)
Shares Amount Surplus Profits On Securities Total
- ---------------------------------------------------------------------------------------------------------------------------------
FOR THREE MONTHS ENDED MARCH 31, 1998
<S> <C> <C> <C> <C> <C> <C>
Balance at beginning of period............ 2,566,172 $12,830,860 $9,693,301 $13,097,716 $710,591 $36,332,468
Net income................................ 0 0 0 1,172,946 0 1,172,946
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)
Increase in unrealized gain on securities 0 0 0 -- (103,058) (103,058)
----------- ------------ ------------ ------------ ----------- -----------
Balance at end of period.................. 2,567,372 $12,836,860 $9,731,101 $13,966,332 $607,533 $37,141,826
FOR THREE MONTHS ENDED MARCH 31, 1997
Balance at beginning of period............ 1,273,546 $6,367,730 $9,345,091 $16,638,880 $48,199 $32,399,900
Net income................................ 0 0 0 934,559 0 934,559
Sale of common stock...................... 7,400 37,000 270,100 (165,000) 0 142,100
Cash dividends............... ............ 0 0 0 (255,053) -- (255,053)
Increase in unrealized gain on securities 0 0 0 0 (276,348) (276,348)
------------ ---------- -------------- ------------ ---------- ------------
Balance at end of period.................. 1,280,946 $6,404,730 $9,615,191 $17,153,386 ($228,149) $32,945,158
See accompanying notes
-4-
</TABLE>
<PAGE>
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 1997 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. The assumed exercise of stock options is included in
the calculation of diluted earnings per share.
5
<PAGE>
<TABLE>
<CAPTION>
OLD POINT FINANCIAL CORPORATION
Parent only Balance Sheets March 31, December 31
(Unaudited) 1998 1997
---------- ----------
<S>
Assets <C> <C>
Cash in bank................................ $ 333,392 $ 289,230
Investment Securities....................... 1,872,933 1,877,175
Total Loans................................. 0 0
Investment in Subsidiary.................... 34,940,099 34,170,604
Other assets................................ 9,202 7,759
---------- ----------
Total Assets................................ $37,155,626 $36,344,768
========== ==========
Liabilities and Stockholders' Equity
Total Liabilities........................... $ 13,800 $ 12,300
Stockholders' Equity........................ 37,141,826 36,332,468
---------- ----------
Total Liabilities & Stockholders' Equity.... $37,155,626 $36,344,768
========== ===========
<CAPTION>
<S>
OLD POINT FINANCIAL CORPORATION Three Months Ended:
Parent only Income Statements March 31,
(Unaudited) 1998 1997
---------- ----------
Income <C> <C>
Cash dividends from Subsidiary.............. $ 300,000 $ 250,000
Interest and fees on loans.................. 0 579
Interest income from investment securities.. 26,480 24,471
Gains (losses) from sale of
investment securities...................... 0 0
Other income................................ 0 0
---------- ----------
Total Income................................ 326,480 275,050
Expenses
Salaries and employee benefits.............. 0 0
Other expenses.............................. 21,788 4,573
---------- ----------
Total Expenses.............................. 21,788 4,573
Income before taxes & undistributed
net income of subsidiary................ 304,692 270,477
Income tax.................................. 1,500 6,900
Net income before undistributed ---------- ----------
net income of subsidiary.................. 303,192 263,577
Undistributed net income of subisdiary...... 869,754 670,982
---------- ----------
Net Income.................................. $ 1,172,946 $ 934,559
========== ==========
- 6 -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
OLD POINT FINANCIAL CORPORATION Three Months Ended:
Parent only Statements of Cash Flows March 31,
(Unaudited) 1998 1997
---------- ----------
<S>
Cash Flows from Operating Activities: <C> <C>
Net Income.................................. $ 1,172,946 $ 934,559
Adjustments to reconcile net income to
net cash provided by operating activities:
Equity in undistributed income of subsidiary (869,754) (670,982)
Depreciation.............................. 0 0
Gains(losses) on sale of securities(net) 0 0
(Increase) Decrease in other assets..... 0 52,614
Increase (decrease) in other liabilities 1,500 6,900
---------- ----------
Net cash provided by operating activities... 304,692 323,091
Cash flows from investing activities:
(Increase)decrease in investment securities. 0 (200,000)
Sale of Assets.............................. 0 14,411
Repayment of loans by customers............. 0 49,884
---------- ----------
Net cash provided by investing activities... 0 (135,705)
Cash flows from financing activities:
Proceeds from issuance of common stock...... 21,750 142,100
Dividends paid.............................. (282,280) (255,053)
---------- ----------
Net cash provided by financing activities... (260,530) (112,953)
Net increase (decrease) in cash &
due from banks.............................. 44,162 74,433
Cash & due from banks at beginning of period.. 289,230 142,683
---------- ----------
Cash & due from banks at end of period......... $ 333,392 $ 217,116
- 7 -
</TABLE>
<PAGE>
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 $1.17 million, or $0.46 per share in the first
quarter of 1998 compared to $935 thousand or $0.37 per share in
the same period of 1997. Return on average assets was 1.32% in
the first quarter of 1998, and 1.18% for the comparable period in
1997. Return on average equity was 12.65% in the first quarter
of 1998 and 11.34% for the first three months of 1997.
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 $3.90 million for the first quarter of
1998, up $380 thousand, or 11% from $3.50 million in the same
period of 1997. The net interest yield decreased from 4.71% in
1997 to 4.64% in 1998.
Tax equivalent interest income increased $818 thousand, or 14%,
in the first quarter of 1998 from the first quarter of 1997.
Average earning assets grew $37.2 million, or 13% in the first
quarter of 1998 compared to the first quarter of 1997. Comparing
the first quarter of 1998 to 1997 total average loans increased
$20.9 million, or 10%, while average investment securities
increased $6.5 million, or 7%.
Interest expense increased $437 thousand, or 18%, in the first
quarter of 1998 from the first quarter of 1997 while interest
bearing liabilities increased 12% during the same period.
Certificates of deposit increased 15% and interest checking and
savings accounts increased 8%. The cost of funding liabilities
increased nineteen basis points due to the higher cost of federal
funds purchased and securities sold under agreements to
repurchase and payments on interest bearing deposit accounts.
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 $150,000 during the
first quarter of 1998 compared with $100,000 for the same period
in 1997.
Loans charged off (net of recoveries) during in the first
quarter of 1998 totaled $195 thousand compared to $49 thousand in
1997. A large portion of the charge offs was 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 experienced a
significant increase in personal bankruptcies leading to higher
charge offs of indirect dealer loans.
8
<PAGE>
The allowance for loan losses on March 31, 1998 was $2.63
million or 1.17% of loans at March 31, 1998 and $2.38 million or
1.17% of loans at March 31, 1997.
As of March 31, 1998, nonperforming assets were $1.19 million,
down from $1.86 million on March 31, 1997. Nonperforming assets
consist of loans in nonaccrual status and other real estate. The
1998 total consisted of other real estate of $580 thousand and
$612 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
$226 thousand in foreclosed real estate. Nonaccrual loans
consisted of $129 thousand in commercial loans and $388 thousand
in mortgage loans and $95 thousand in installment 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 $76.8 thousand, or 7% during the first
quarter of 1998 over the same period in 1997. Trust Services
fees increased 3% and other service charge income increased by
7%.
OTHER EXPENSES
Other expenses increased $22 thousand or 1% during the first
quarter of 1998 over 1997. Salaries and employee benefits
decreased 2% due to a one time health insurance rebate. Occupancy
expense increased $7 thousand, or 3% in 1997 primarily due to
higher maintenance costs associated with repairs and remodeling
of bank buildings. Furniture and Equipment expense increased $17
thousand or 6% due to equipment repairs and service contracts on
new equipment purchases. Other operating expenses increased $30
thousand or 4%. This increase is due primarily to an increase in
foreclosed property expense.
ASSETS
At March 31, 1998, the Company had total assets of $383.7
million, up 10% from $348.7 million at December 31, 1997. Total
loans increased $2.6 million, or 1% and investment securities
increased $19.1 million, or 20%, in 1998 from December 31, 1997.
The Company expects to open a new facility early this summer
which will be home to Old Point Commercial and Real Estate
Services as well as the Trust and Financial Services Departments.
The Company has also acquired property in Norge, VA on which a
full service branch office will be built. This office is
scheduled to be open in the fourth quarter of 1998.
INTEREST BEARING LIABILITIES
Total deposits increased $35.1 million, or 12% in 1998.
During the first quarter of 1998 the Company began offering a
premium money market account which accounted for $9.1 million of
the increase in deposits. Interest bearing demand notes to the
United States Treasury decreased $558 thousand, or 14%, while
repurchase agreements, used as a cash management vehicle by
commercial customers, decreased $1.0 million or 5%.
CAPITAL RESOURCES
The Company's capital position remains strong as evidenced
by the regulatory capital measurements. At March 31, 1998 the
Tier I capital ratio was 14.58%, the total capital ratio was
15.64% and the leverage ratio was 10.11%. These ratios were all
well above the regulatory minimum levels of 4.00%, 8.00%, and
3.00%, respectively.
9
<PAGE>
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, 1998.
There were $101.2 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; 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, 1998.
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
has a five-step plan to identify, correct, upgrade and test all
of its hardware and software by the end of 1998. A Year 2000
project team has been assembled which meets on a monthly basis to
monitor progress and address any new issues that might arise.
The Company has identified and cataloged all of its hardware and
software. Software and hardware that is not Year 2000 compliant
is being identified and plans are being developed to upgrade
and/or replace hardware and software that is not Year 2000
compliant. Additionally, the Company's vendors and major
customers are being contacted to determine their Year 2000
efforts so that the Company can plan accordingly.
Operating and capital budgets incorporate projected expenditures
necessary to ensure that all systems are Year 2000 compliant. At
this time management does not believe that related expenditures
will have an adverse material effect on the Company.
10
<PAGE>
<TABLE>
<CAPTION>
OLD POINT FINANCIAL CORPORATION
NET INTEREST INCOME ANALYSIS For the quarter ended March 31,
(Fully taxable equivalent basis)* 1998 1997
-----------------------------------------------------------------------------------------------------------------
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)**.... $221,462 $ 4,941 8.92% $200,584 $4,428 8.83%
Investment securities:
Taxable........................... 72,872 1,124 6.17% 73,362 1,111 6.06%
Tax-exempt........................ 27,364 565 8.26% 20,371 415 8.15%
-------- -------- -------- ------
Total investment securities..... 100,236 1,689 6.74% 93,733 1,526 6.51%
Federal funds sold.................. 13,001 182 5.60% 3,123 40 5.12%
-------- -------- -------- ------
Total earning assets.............. $334,699 $6,812 8.14% $297,440 $5,994 8.06%
Time and savings deposits:
Interest-bearing transaction
accounts......................... $20,035 $105 2.10% $25,920 $142 2.19%
Money market deposit accounts..... 59,385 471 3.17% 46,287 358 3.09%
Savings accounts.................. 26,066 176 2.70% 25,632 173 2.70%
Certificates of deposit, $100,000 24,195 358 5.92% 16,923 230 5.44%
Other certificates of deposit..... 114,840 1,557 5.42% 104,282 1,382 5.30%
-------- -------- -------- ------
Total time and savings deposits. 244,522 2,667 4.36% 219,044 2,285 4.17%
Federal funds purchased and securiti
under agreement to repurchase..... 19,812 234 4.72% 16,121 185 4.59%
Other short term borrowings......... 1,821 28 6.15% 1,687 22 5.22%
-------- -------- -------- ------
Total interest bearing liabilities $266,155 2,929 4.40% $236,852 2,492 4.21%
Net interest income/yield........... $3,883 4.64% $3,502 4.71%
======== ===== ====== =====
* 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
-11-
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<TABLE>
<CAPTION>
INTEREST SENSITIVITY ANALYSIS
As of March 31, 1998 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.............. 21,074 -- -- -- 21,074
Taxable investments............. 10,969 9,091 42,545 25,115 87,720
Tax-exempt investments.......... -- 371 1,349 26,217 27,937
-------- -------- -------- -------- --------
Total investments............. 32,043 9,462 43,894 51,332 136,731
Loans:
Commercial.................... 18,653 1,395 26,514 2,135 48,697
Tax-exempt.................... 1,574 108 181 0 1,863
Installment................... 4,821 1,925 57,446 2,129 66,321
Real estate................... 20,345 12,042 59,292 15,064 106,743
Other......................... 332 -- 417 0 749
-------- -------- -------- -------- --------
Total loans..................... 45,725 15,470 143,850 19,328 224,373
-------- -------- -------- -------- --------
Total earning assets............ 77,768 24,932 187,744 70,660 361,104
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............ (101,232) (25,368) 133,962 70,660 78,022
Cumulative GAP.................. (101,232) (126,600) 7,362 78,022
-12-
</TABLE>
<PAGE>
PART II - OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) none
(b) No Reports on Form 8-K were filed during
the first quarter of 1998.
13
<PAGE>
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, 1998
By: [S] Robert 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
14
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1995
<CASH> 10,110
<INT-BEARING-DEPOSITS> 29
<FED-FUNDS-SOLD> 21,074
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 66,683
<INVESTMENTS-CARRYING> 48,974
<INVESTMENTS-MARKET> 48,825
<LOANS> 224,373
<ALLOWANCE> 2,626
<TOTAL-ASSETS> 383,737
<DEPOSITS> 322,208
<SHORT-TERM> 3,442
<LIABILITIES-OTHER> 1,787
<LONG-TERM> 23
0
0
<COMMON> 12,837
<OTHER-SE> 23,697
<TOTAL-LIABILITIES-AND-EQUITY> 383,737
<INTEREST-LOAN> 4,923
<INTEREST-INVEST> 1,499
<INTEREST-OTHER> 182
<INTEREST-TOTAL> 6,604
<INTEREST-DEPOSIT> 2,640
<INTEREST-EXPENSE> 2,929
<INTEREST-INCOME-NET> 3,675
<LOAN-LOSSES> 150
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 3,097
<INCOME-PRETAX> 1,599
<INCOME-PRE-EXTRAORDINARY> 1,599
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,173
<EPS-PRIMARY> 0.46
<EPS-DILUTED> 0.45
<YIELD-ACTUAL> 4.64
<LOANS-NON> 612
<LOANS-PAST> 852
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 1,320
<ALLOWANCE-OPEN> 2,671
<CHARGE-OFFS> 276
<RECOVERIES> 81
<ALLOWANCE-CLOSE> 2,626
<ALLOWANCE-DOMESTIC> 2,626
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,396
</TABLE>
