8-K

                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 8-K


                                 CURRENT REPORT

     Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934


       Date of Report (Date of Earliest Event Reported): January 25, 2006



                             FOUR OAKS FINCORP, INC.
             (Exact name of registrant as specified in its charter)


       North Carolina               000-22787                  56-2028446
(State or other jurisdiction       (Commission               (I.R.S. Employer
      of incorporation)            File Number)           Identification Number)



                6114 U.S. 301 South
             Four Oaks, North Carolina                    27524
     (Address of principal executive offices)          (Zip Code)



                                 (919) 963-2177
               Registrant's telephone number, including area code

                                       N/A
          (Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
    230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
    240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
    Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))





Item 2.02       Results of Operations and Financial Condition.

On January 25, 2006, Four Oaks Fincorp, Inc. (OTC BB: FOFN) issued a press
release announcing reported financial results for the fourth quarter ended
December 31, 2005 and annual results ended fiscal year 2005. The full text of
the press release is set forth in Exhibit 99.1 hereto and is incorporated herein
by reference.

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the
information in this Item 2.02, including the press release attached as Exhibit
99.1, is furnished and shall not be deemed to be "filed" for purposes of Section
18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to
the liability of that section. Furthermore, the information in this Item 2.02,
including the press release attached as Exhibit 99.1, shall not be deemed to be
incorporated by reference into the filings of the registrant under the
Securities Act of 1933, as amended.



Item 9.01       Financial Statements and Exhibits.

(c)     Exhibits.


          Exhibit No.       Description
          -----------       -----------
          99.1              Press Release issued on January 25, 2006









                                    SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                           FOUR OAKS FINCORP, INC.


                                           By:  /s/ Ayden R. Lee, Jr.
                                              ----------------------------------
                                           Ayden R. Lee, Jr.
                                           President and Chief Executive Officer



Date: January 25, 2006










                                  EXHIBIT INDEX
                                  -------------


        Exhibit No.             Description
        -----------             -----------
        99.1                    Press Release issued on January 25, 2006

EX-99.1

                                                                    Exhibit 99.1


    Four Oaks Fincorp, Inc. Announces 2005 Fourth Quarter and Annual Results


     FOUR OAKS, N.C.--(BUSINESS WIRE)--Jan. 25, 2006--Four Oaks Fincorp, Inc.,
(OTCBB:FOFN) the holding company for Four Oaks Bank & Trust Company, today
announced fourth quarter and annual results for fiscal year 2005. Net income
increased 10% and 22% in the fourth quarter and for the year of 2005 as compared
to the same periods of 2004. Net income was $1,389,000 or $0.32 per basic share
for the quarter ended December 31, 2005, compared to $1,263,000 or $0.30 per
basic share for the quarter ended December 31, 2004. For the year ended December
31, 2005, net income was $5,349,000 or $1.23 per basic share, compared to
$4,375,000 or $1.03 per basic share earned during 2004. Return on average equity
and return on average assets for 2005 were 13.39% and 1.19%, respectively, and
increased from 12.45% and 1.16%, respectively, for 2004. The Company increased
the level of dividends paid to its shareholders from the $0.06 per share that
was paid in the fourth quarter of 2004 to $0.08 per share paid in the fourth
quarter of fiscal year 2005. Year to date dividends paid in 2005 were $0.30 per
share, up from $0.26 paid in 2004. All per share figures are adjusted for the
effect of the five-for-four stock splits effected in November 2005 and October
2004.
     Improved earnings trends continued in the fourth quarter of 2005, when
compared to the same period of 2004, as evidenced by an 18% increase in net
interest income after the provision for loan losses, from $4,084,000 to
$4,817,000. Operating expenses increased 11% in the fourth quarter of 2005 to
$3,393,000, as compared to the same period of 2004, primarily due to increased
professional fees related to compliance with new regulations, along with
increased salaries and benefits associated with the expansion of our locations.
     The Company's balance sheet growth continued in the fourth quarter of 2005.
Total deposits of $399,563,000 at December 31, 2005 grew 27% from December 31,
2004. Net loans increased 27% to $392,129,000 from $308,760,000 at December 31,
2004. Shareholders' equity grew to $41,958,000, a 13% increase over December 31,
2004. Book value per share at December 31, 2005 was $9.58 as compared to $8.68
at December 31, 2004. Shareholders' equity as a percentage of total assets was
8.03% at December 31 2005 as compared to 9.36% at December 31, 2004.
     With $522,410,000 in total assets as of December 31, 2005, the Company,
through its wholly owned subsidiary, Four Oaks Bank & Trust Company, offers a
broad range of financial services through its thirteen offices in Four Oaks,
Clayton, Smithfield, Garner, Benson, Fuquay-Varina, Wallace, Holly Springs,
Harrells, Sanford, and Zebulon, North Carolina. The Harrells branch office and
the Sanford loan production office both opened in January 2005. The Zebulon loan
production office opened in January 2006.


     CONTACT: Four Oaks Fincorp, Inc.
              Ayden R. Lee, Jr., 919-963-2177
              President and Chief Executive Officer
              Nancy S. Wise, 919-963-2177
              Executive Vice President and Chief Financial Officer