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
<PAGE>
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)
<PAGE>
<TABLE>
<CAPTION>
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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
<PAGE>
<TABLE>
<CAPTION>
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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
<PAGE>
<TABLE>
<CAPTION>
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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
<PAGE>
<TABLE>
<CAPTION>
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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
<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 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
<PAGE>
<TABLE>
<CAPTION>
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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>
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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
<PAGE>
<TABLE>
<CAPTION>
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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
<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 $1.22 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
<PAGE>
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
<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, 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
<PAGE>
<TABLE>
<CAPTION>
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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
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<TABLE>
<CAPTION>
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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
<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 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
<PAGE>
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
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 11,047
<INT-BEARING-DEPOSITS> 82
<FED-FUNDS-SOLD> 9852
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 80,763
<INVESTMENTS-CARRYING> 45,835
<INVESTMENTS-MARKET> 44,170
<LOANS> 294,306
<ALLOWANCE> 3,236
<TOTAL-ASSETS> 458,804
<DEPOSITS> 371,325
<SHORT-TERM> 5,594
<LIABILITIES-OTHER> 1,963
<LONG-TERM> 15,000
0
0
<COMMON> 12,916
<OTHER-SE> 30,713
<TOTAL-LIABILITIES-AND-EQUITY> 458,804
<INTEREST-LOAN> 5,946
<INTEREST-INVEST> 1,787
<INTEREST-OTHER> 19
<INTEREST-TOTAL> 7,753
<INTEREST-DEPOSIT> 3,514
<INTEREST-EXPENSE> 3,711
<INTEREST-INCOME-NET> 4,042
<LOAN-LOSSES> 175
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 3,794
<INCOME-PRETAX> 1,502
<INCOME-PRE-EXTRAORDINARY> 1,502
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,215
<EPS-BASIC> .47
<EPS-DILUTED> .47
<YIELD-ACTUAL> 4.20
<LOANS-NON> 493
<LOANS-PAST> 404
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 1,732
<ALLOWANCE-OPEN> 3,111
<CHARGE-OFFS> 143
<RECOVERIES> 93
<ALLOWANCE-CLOSE> 3,236
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,728
</TABLE>
