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
<PAGE>
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)
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<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
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<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
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<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 -
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<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
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<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 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-
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<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>
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<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>
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<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 $1.25 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-
<PAGE>
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-
<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, 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.
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<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>
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[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-
<PAGE>
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.
<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, 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
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 8,242
<INT-BEARING-DEPOSITS> 41
<FED-FUNDS-SOLD> 3,097
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 85,054
<INVESTMENTS-CARRYING> 54,425
<INVESTMENTS-MARKET> 54,535
<LOANS> 247,643
<ALLOWANCE> 2,911
<TOTAL-ASSETS> 413,251
<DEPOSITS> 345,740
<SHORT-TERM> 1,064
<LIABILITIES-OTHER> 1,786
<LONG-TERM> 13
0
0
<COMMON> 12,881
<OTHER-SE> 27,229
<TOTAL-LIABILITIES-AND-EQUITY> 413,251
<INTEREST-LOAN> 5,115
<INTEREST-INVEST> 1,906
<INTEREST-OTHER> 61
<INTEREST-TOTAL> 7,082
<INTEREST-DEPOSIT> 3,021
<INTEREST-EXPENSE> 3,276
<INTEREST-INCOME-NET> 3,806
<LOAN-LOSSES> 150
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 3,382
<INCOME-PRETAX> 1,600
<INCOME-PRE-EXTRAORDINARY> 1,600
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,248
<EPS-PRIMARY> .48
<EPS-DILUTED> .48
<YIELD-ACTUAL> 4.34
<LOANS-NON> 239
<LOANS-PAST> 508
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 2,774
<ALLOWANCE-OPEN> 2,855
<CHARGE-OFFS> 195
<RECOVERIES> 102
<ALLOWANCE-CLOSE> 2,912
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,447
</TABLE>
