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):  July 29, 2016

OLD POINT FINANCIAL CORPORATION

 (Exact name of registrant as specified in its charter)

Virginia	000-12896	54-1265373
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1 West Mellen Street

Hampton, Virginia  23663

(Address of principal executive offices)  (Zip Code)

(757)728-1200

(Registrant's telephone number, including area code)

Not applicable

(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 July 29, 2016 Old Point Financial Corporation issued a press release reporting its earnings and financial results for the three and six months ended June 30, 2016.  A copy of the press release is furnished as Exhibit 99.1and is incorporated by reference into this Item 2.02.

Item  9.01 Financial Statements and Exhibits.

(d)	Exhibits
	Exhibit 99.1 Press release dated July 29, 2016

SIGNATURES

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.

	Old Point Financial Corporation
	Registrant
Date:  July 29, 2016
	/s/ Robert F. Shuford, Sr.
	Robert F. Shuford, Sr.
	Chairman of the Board
	President & Chief Executive Officer

EX-99.1

Old Point Releases Second Quarter 2016 Results

·  Net interest margin improves to 3.67%

·  Net loans increase $29.5 million

·  Nonperforming assets improve significantly

July 29, 2016 Hampton, VAOld Point Financial Corporation (NASDAQ "OPOF") reported net income of $1.6 million, or $0.32 per diluted share, for the six months ended June 30, 2016, compared to net income of $2.5 million, or $0.50 per diluted share, for the six months ended June 30, 2015. Higher net interest and noninterest income during this period were offset by higher noninterest expense and a higher provision for loan losses.

Interest and dividend income decreased $254 thousand for the first six months of 2016 as compared to the first six months of 2015, primarily as a result of sales of securities in the first quarter of 2016. These securities were sold to reduce the portfolio's susceptibility to interest rate risk in future periods, as well as to provide liquidity for loan growth. As loans typically bear higher yields than securities, management expects this restructuring of the balance sheet to provide higher interest income in future quarters.

The sale of these securities also resulted in a gain of $509 thousand in the first quarter of 2016, which offset a $391 thousand fee Old Point paid on the early payoff of an advance from the Federal Home Loan Bank (FHLB). The payoff of this advance, which would have matured in June, reduced interest expense by $456 thousand when comparing the first half of 2015 and 2016. This reduction in interest expense increased net interest income before the provision by $256 thousand for the six months ended June 30, 2016 when compared to the six months ended June 30, 2015 and was the primary reason Old Point's net interest margin increased from 3.55% to 3.67% for the same periods.

While net interest income before the provision was higher in the first half of 2016 than in the first half of 2015, net interest income after the provision for loan losses was $844 thousand lower between the two periods due to a $1.3 million provision for loan losses in the first six months of 2016, which was $1.1 million higher than the provision in the first six months of 2015. Approximately $400 thousand of this increase was due to growth in loans, which required Old Point to set aside additional funds to maintain an adequate allowance.

The remainder of the increase was due to a charge-off on a single borrowing relationship whose condition deteriorated rapidly. Old Point identified the potential impairment on this relationship in the second quarter of 2016 and charged off uncollectible balances of $836 thousand based on management's analysis of the loans' collateral. Primarily as a result of this charge-off, annualized net loans charged off as a percent of total loans were 0.40% on for the six months ended June 30, 2016, compared to a net recovery for the six months ended June 30, 2015. Although this charge-off reduced earnings for the second quarter of 2016 as compared to the second quarter of 2015, nonperforming assets improved during the second quarter of 2016, with nonaccrual loans decreasing $2.5 million and other real estate owned decreasing $356 thousand when comparing June 30, 2016 to March 31, 2016.

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Old Point National Bank's President and CEO, Rob Shuford, Jr., reiterated, "Old Point has diligently moved in a new direction. We are evaluating the types of credits we're targeting and reviewing our credit, underwriting, and monitoring processes. We're confident we've made significant improvements in this area and are optimistic about our strategy for the future."

Noninterest income and noninterest expense both increased when comparing the first six months of 2016 to the first six months of 2015. When comparing these two periods, noninterest income increased $315 thousand, primarily as a result of net gains on sales of available-for-sale securities during the first six months of 2016. For the same periods, noninterest expense increased $795 thousand from the same period in 2015, with the single largest component being the $391 thousand fee assessed on the prepayment of the FHLB advance discussed previously.

Noninterest expense for the six months ended June 30, 2016 was also impacted by increases in legal and audit expenses, occupancy and equipment, data processing, and other outside service fees. Expenses incurred in the preparation of the Company's proxy statement for its 2016 annual stockholders' meeting increased legal and audit expenses. The 2016 proxy statement contained numerous proposals, including changes to the Company's articles of incorporation, the addition of an employee stock purchase plan, and the addition of a new stock incentive plan, all of which required extensive review by outside legal counsel. Occupancy and equipment increased due to additional depreciation and service contract expenses related to the Company's new, more sophisticated disaster recovery system that was implemented in the third quarter of 2015. The new disaster recovery system was also partially responsible for the increase in data processing expense. Other outside service fees increased due to servicing expenses on the Company's student loan portfolio and the outsourcing of certain loan review functions. In contrast to these increases when comparing the first half of 2016 to the first half of 2015, ATM and check losses were down $109 thousand while salaries and employee benefits remained essentially flat between the two periods.

On the balance sheet, assets as of June 30, 2016 were $897.7 million, an increase of $886 thousand from December 31, 2015. Although assets remained almost flat in the first six months of 2016, there was a significant shift in the composition of the balance sheet during this period.  Management continues to implement its balance sheet strategy by growing the loan portfolio through the reinvestment of funds previously held in securities, as well as available liquidity from cash and due from banks. On a combined basis, securities available-for-sale and cash and cash equivalents decreased $52.8 million, while net loans grew $29.5 million from December 31, 2015 to June 30, 2016.

The decline in securities outpaced the growth in loans due to the sale of certain securities in the second quarter, which had traded but not yet settled as of June 30, 2016 and were held in other assets. These securities were sold in part to fund loan growth, but also to limit the securities portfolio's susceptibility to interest rate risk. With the sharp declines in market interest rates in June 2016, Old Point was able to sell for a gain certain under-performing securities. A portion of this sale settled in June of 2016, which resulted in a $6 thousand gain for the second quarter, but $24.5 million did not settle until July of 2016.

On the liabilities side of the balance sheet, declines in deposits were offset by advances from the FHLB. As discussed above, management made a strategic decision in the first quarter of 2016 to prepay a $25.0 million advance, which would have matured in June of 2016. In second quarter 2016, Old Point took out additional borrowings from the FHLB at significantly lower rates than that carried by the advance that was prepaid. These new advances were for shorter terms, allowing Old Point to obtain additional liquidity when necessary without maintaining excess liquidity on the balance sheet.

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For information about our commitment to the community, pick up a copy of Old Point's Community Engagement Report in any of our branches or request a PDF via email (lwright@oldpoint.com). For information about upcoming initiatives, please visit our website (www.oldpoint.com), our Facebook page (www.facebook.com/oldpoint), or join us on Twitter (www.twitter.com/opnb).

Other items of note:

Non-Performing Assets (NPAs) decreased from $10.7 million as of December 31, 2015 to $9.0 million as of June 30, 2016. NPAs do not include restructured loans that are performing in accordance with their modified terms. Loans past due 90 days or more but still accruing interest, a component of NPAs, totaled $3.2 million as of June 30, 2016, of which $2.6 million were student loans with principal and interest amounts that are 97-98% guaranteed by the U.S. Government. Old Point expects to experience minimal losses on these government-guaranteed loans. Loans past due 90 days or more but still accruing interest totaled $3.4 million as of December 31, 2015, of which $3.1 million were student loans with principal and interest amounts that are 97-98% guaranteed by the U.S. government.

Allowance for Loan and Lease Losses (ALLL) was 1.33% of total loans as of June 30, 2016, compared to 1.36% at December 31, 2015.

Safe Harbor Statement Regarding Forward-Looking Statements. Statements in this press release which use language such as "believes," "expects," "plans," "may," "will," "should," "projects," "contemplates," "anticipates,"  "forecasts," "intends" and similar expressions, identify forward-looking statements. These forward-looking statements are based on the beliefs of Old Point's management, as well as estimates and assumptions made by, and information currently available to, management. These statements are inherently uncertain, and there can be no assurance that the underlying estimates or assumptions will prove to be accurate. Actual results could differ materially from historical results or those anticipated by such statements. Forward-looking statements in this release include, without limitation, statements regarding future financial performance, strategic business initiatives, management's efforts to reposition the balance sheet, levels and sources of liquidity, use of proceeds from the sale of securities, future levels of charge-offs or net recoveries, and the performance of Old Point's purchased student loan portfolio.

Factors that could have a material adverse effect on the operations and future prospects of Old Point include, but are not limited to, changes in: interest rates and yields; general economic and business conditions, including unemployment levels; demand for loan products; the legislative/regulatory climate; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of the loan or securities portfolios; changes in the volume and mix of interest-earning assets and interest-bearing liabilities; the effects of management's investment strategy and strategy to manage the net interest margin; the U.S. Government's guarantee of repayment of student loans purchased by Old Point; the level of net charge-offs on loans; deposit flows; competition; demand for financial services in Old Point's market area; technology; reliance on third parties for key services; the use of inaccurate assumptions in management's modeling systems; the real estate market; accounting principles, policies and guidelines; and other factors detailed in Old Point's publicly filed documents, including its Annual Report on Form 10-K for the year ended December 31, 2015. These risks and uncertainties should be considered in evaluating the forward-looking statements contained herein, and readers are cautioned not to place undue reliance on such statements, which speak only as of date of the release.

Old Point Financial Corporation ("OPOF" - Nasdaq)is theparent company of The Old Point National Bank of Phoebus, a locally owned and managed community bank serving all of Hampton Roads and Old Point Trust & Financial Services, N.A., aHampton Roads wealth management services provider. Web: www.oldpoint.com. For more information, contact Erin Black, Vice President/Marketing Director, Old Point National Bank at 757- 251-2792.

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Old Point Financial Corporation and Subsidiaries
Consolidated Balance Sheets	June 30,			December 31,
(dollars in thousands, except per share data)	2016			2015
	(unaudited)
Assets
Cash and due from banks	$	28,974		$	33,514
Interest-bearing due from banks		1,722			1,064
Federal funds sold		1,520			2,412
Cash and cash equivalents		32,216			36,990
Securities available-for-sale, at fair value		166,216			214,192
Restricted securities		2,882			2,016
Loans, net of allowance for loan losses of $7,934 and $7,738		590,227			560,737
Premises and equipment, net		40,285			41,282
Bank-owned life insurance		24,843			24,411
Other real estate owned, net of valuation allowance of $2,046 and $2,549		1,887			2,741
Other assets		39,117			14,418
Total assets	$	897,673		$	896,787
Liabilities & Stockholders' Equity
Deposits:
Noninterest-bearing deposits	$	206,815		$	215,090
Savings deposits		311,932			321,370
Time deposits		208,254			210,011
Total deposits		727,001			746,471
Overnight repurchase agreements		23,865			25,950
Federal Home Loan Bank advances		45,000			25,000
Accrued expenses and other liabilities		5,874			6,190
Total liabilities		801,740			803,611
Commitments and contingencies
Stockholders' equity:
Common stock, $5 par value, 10,000,000 shares authorized;
4,959,009 shares issued and outstanding		24,795			24,795
Additional paid-in capital		16,392			16,392
Retained earnings		55,732			55,151
Accumulated other comprehensive loss, net		(986	)		(3,162	)
Total stockholders' equity		95,933			93,176
Total liabilities and stockholders' equity	$	897,673		$	896,787

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Old Point Financial Corporation and Subsidiaries
Consolidated Statements of Income
(dollars in thousands, except per share data)		Three Months Ended					Six Months Ended
		June 30,					June 30,
		2016			2015		2016			2015
	(unaudited)
Interest and Dividend Income:
Interest and fees on loans		$	6,560		$	6,485	$	12,973		$	12,840
Interest on due from banks			1			3		5			10
Interest on federal funds sold			1			1		2			1
Interest on securities:
Taxable			471			615		1,019			1,301
Tax-exempt			376			415		760			838
Dividends and interest on all other securities			26			31		41			64
Total interest and dividend income			7,435			7,550		14,800			15,054
Interest Expense:
Interest on savings deposits			54			57		109			109
Interest on time deposits			517			544		1,034			1,072
Interest on federal funds purchased, securities sold under
agreements to repurchase and other borrowings			8			8		14			16
Interest on Federal Home Loan Bank advances			3			309		144			614
Total interest expense			582			918		1,301			1,811
Net interest income			6,853			6,632		13,499			13,243
Provision for loan losses			1,250			25		1,400			300
Net interest income after provision for loan losses			5,603			6,607		12,099			12,943
Noninterest Income:
Income from fiduciary activities			877			914		1,778			1,894
Service charges on deposit accounts			1,021			994		1,996			1,976
Other service charges, commissions and fees			1,033			1,058		2,051			2,063
Income from bank-owned life insurance			217			222		432			443
Income from Old Point Mortgage			80			125		89			158
Gain on sale of available-for-sale securities, net			6			0		515			0
Other operating income			52			46		90			102
Total noninterest income			3,286			3,359		6,951			6,636
Noninterest Expense:
Salaries and employee benefits			4,890			5,057		10,044			10,106
Occupancy and equipment			1,390			1,304		2,748			2,631
Data processing			435			407		857			765
FDIC insurance			156			153		321			300
Customer development			154			161		304			315
Legal and audit expenses			295			160		497			274
Other outside service fees			178			195		361			309
Employee professional development			179			162		327			293
Capital stock tax			127			111		262			225
ATM and check losses			83			142		170			279
Prepayment fee on Federal Home Loan Bank advance			0			0		391			0
Loss on write-down/sale of other real estate owned			9			3		108			72
Other operating expenses			589			639		1,186			1,212
Total noninterest expense			8,485			8,494		17,576			16,781
Income before income taxes			404			1,472		1,474			2,798
Income tax expense (benefit)			(148	)		193		(99	)		314
Net income		$	552		$	1,279	$	1,573		$	2,484
Basic Earnings per Share:
Average shares outstanding			4,959,009			4,959,009		4,959,009			4,959,009
Net income per share of common stock		$	0.11		$	0.26	$	0.32		$	0.50
Diluted Earnings per Share:
Average shares outstanding			4,959,009			4,959,009		4,959,009			4,959,009
Net income per share of common stock		$	0.11		$	0.26	$	0.32		$	0.50
Cash Dividends Declared per Share:		$	0.10		$	0.08	$	0.20		$	0.16

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Old Point Financial Corporation and Subsidiaries
Selected Ratios	June 30,			March 31,			December 31,			June 30,
	2016			2016			2015			2015
Net Interest Margin Year-to-Date		3.67	%		3.62	%		3.56	%		3.55	%
NPAs/Total Assets		1.00	%		1.38	%		1.19	%		1.30	%
Annualized Net Charge Offs/Total Loans		0.40	%		0.06	%		0.06	%		-0.01	%
Allowance for Loan Losses/Total Loans		1.33	%		1.36	%		1.36	%		1.29	%

Non-Performing Assets (NPAs) (in thousands)
Nonaccrual Loans	$	3,910	$	6,457	$	4,582	$	3,576
Loans > 90 days past due, but still accruing interest		3,222		3,092		3,356		3,116
Non-Performing Restructured Loans		0		0		0		0
Other real estate owned		1,887		2,243		2,741		4,961
Total Non-Performing Assets	$	9,019	$	11,792	$	10,679	$	11,653

Other Selected Numbers (in thousands)
Loans Charged Off Year-to-Date, net of recoveries	$	1,204	$	86	$	362	$	(22	)
Year-to-Date Average Loans	$	575,812	$	570,344	$	563,534	$	555,032
Year-to-Date Average Assets	$	861,243	$	863,515	$	884,386	$	883,227
Year-to-Date Average Earning Assets	$	759,537	$	759,463	$	775,987	$	775,276
Year-to-Date Average Deposits	$	726,831	$	725,517	$	730,046	$	725,318
Year-to-Date Average Equity	$	94,682	$	94,470	$	90,433	$	89,755

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