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 20, 2006

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 January 20, 2006, Old Point Financial Corporation issued a press release reporting earnings and their financial results for its fourth quarter of 2005, which ended December 31, 2005. A copy of the press release is attached as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits

Exhibit 99.1    Press release dated January 20, 2006

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: January 20, 2006
	/s/ Robert F. Shuford
	Robert F. Shuford Chairman of the Board President & Chief Executive Officer

EX-99.1

Exhibit 99.1

January 20, 2006

OLD POINT FINANCIAL CORPORATION FOURTH QUARTER 2005

EARNINGS RELEASE

HAMPTON, VA. Old Point Financial Corporation (Nasdaq “OPOF”) announced today fourth quarter net income for the quarter ended December 31, 2005 of $1.64 million, as compared to $2.1 million in the fourth quarter of 2004. Basic earnings per share for the quarter are $.41 and fully diluted net income per share is $.40.

Total assets achieved a record level of $740 million, 8% more than 2004. Asset growth was fueled largely by loan growth of $61.3 million, which represents an increase of 14% over 2004. Total deposits increased by 5%, to $536.7 million.

Net income for the quarter was directly impacted by the net interest margin. While interest income rose by $1.2 million or 14% during the quarter, interest expense rose by $1.3 million, or 52%. In addition, two noninterest expense items were substantially higher than the comparable period in 2004: salaries and benefits and marketing expenses. Staffing levels increased by 23 full-time-equivalent positions in support of two new branches that opened during the year and one that is anticipated to open during the first quarter of 2006. Marketing expenses rose by 342%, in part because of expenses associated with the opening of new offices, and also because of direct mail and other expenditures in support of bankwide new consumer checking account initiatives.

Noninterest income for the fourth quarter of 2005 rose by $333 thousand over 2004, a 14% increase. The increase was led by increases in debit card income, service charges on deposit accounts and in income from brokered mortgages.

Fiscal Year 2005 Results

Net income for 2005 was $7.3 million, as compared with 2004 net income of $8.6 million. Return on Average Assets (ROA) for 2005 was 1.03%, and Return on Average Equity (ROE) was 10.31%.

Net interest income after provision for loan losses for 2005 was $23.1 million as compared with $23.5 million in 2004. Total interest income rose by 8%, or $2.8 million, but was more than offset by an increase of total interest expense of $3 million, or 33%. Asset quality remains good. For the entire year 2005, net loans charged off were $905 thousand, compared to $1.4 million in net loans charged off in 2004. The Bank added $1.1 million to the allowance for loan losses through the loan loss provision in 2005, up $200 thousand from 2004. The provision for loan loss was greater in 2005 due to the extraordinary growth in the loan portfolio. While noninterest income rose by $945 thousand, noninterest expenses increased by $2.4 million.

“This has been a building year for us,” said Robert F. Shuford, President, Chairman and CEO of the Corporation. “We have opened two offices during 2005, one in Williamsburg, in the New Town area, and the other on Independence Boulevard in Virginia Beach. We also have another branch at Eagle Harbor in Isle of Wight county about to open within the first quarter of 2006. The expenses associated with these openings impacted our noninterest expenses. These expenses include physical plant, personnel to staff the offices, as well as support staff to accommodate the additional business generated. Marketing dollars have been dedicated to make the public aware of our new presence, as well.” Noninterest expenses increased 11% for the year.

Basic earnings per share for 2005 were $1.81, and diluted earnings per share were $1.78. The Company paid out $0.66 in dividends per common share during 2005.

Old Point Financial Corporation (Nasdaq SmallCap “OPOF”) is the parent company of Old Point National Bank, a locally owned and managed community bank serving Hampton Roads with a 19-branch network extending from Chesapeake through James City County, and Old Point Trust & Financial Services, N.A., a Hampton Roads wealth management services provider. www.oldpoint.com

For More Information Contact: Lani Chisman Davis, Marketing Director, 757/728-1286

Old Point Financial Corporation

Consolidated Balance Sheets (Unaudited)

			(dollars in Thousands)
			31-Dec-05			31-Dec-04
Assets
Cash and due from banks			$	13,602		$	11,595
Federal Funds Sold				2,004			1,978
Cash and Cash Equivalents			$	15,606		$	13,573
Securities available for sale, at market				192,943			201,380
Securities to be held to maturity fair value approximates $3,141 and $9,542				3,123			9,424
Loans (net of allowance of $4,448 and $4,303)				490,249			428,950
Premises and Equipment, net				21,277			18,543
Bank owned life insurance				9,661			8,489
Other Assets				7,134			5,916
Total Assets			$	739,993		$	686,275
			31-Dec-05			31-Dec-04
Liabilities
Noninterest-bearing deposits			$	98,686		$	101,527
Savings deposits				195,833			200,485
Time Deposits				242,225			210,148
Total Deposits				536,744			512,160
Federal funds purchased and securities sold under agreement to repurchase				50,622			48,928
Federal Home Loan Bank Advances				80,000			55,000
Accrued expenses and other liabilities				1,571			1,048
Total Liabilities			$	668,937		$	617,136
Stockholders’ Equity
Common stock, $5.00 par value				20,068			20,068
	2005	2004
Shares Authorized	10,000,000	10,000,000
Shares Outstanding	4,013,553	4,013,644
Additional paid-in capital				14,320			14,074
Retained Earnings				39,074			34,804
Accumulated other comprehensive income(loss)				(2,406	)		193
Total stockholders’ equity				71,056			69,139
Total liabilities and stockholders’ equity			$	739,993		$	686,275

Old Point Financial Corporation

Consolidated Statements of Earnings (Unaudited)

	3 Mo Ended 31-Dec-05		3 Mo Ended 31-Dec-04		12 Mo Ended 31-Dec-05		12 Mo Ended 31-Dec-04
	(Dollars in Thousands, except per share amounts)
Interest Income
Interest and Fees on loans	$	7,988	$	6,750	$	28,976	$	26,290
Interest on federal funds sold		60		66		270		173
Interest on securities
Taxable		1,314		1,326		5,311		5,132
Exempt from Federal income tax		407		457		1,705		1,888
Dividends and interest on all other securities		71		50		225		156
Total interest income		9,840		8,649		36,487		33,639
Interest Expense
Interest on savings deposits		397		297		1,431		1,032
Interest on time deposits		2,099		1,418		6,987		5,582
Interest on federal funds purchased and securities sold under agreement to repurchase and other borrowings		366		148		1,160		371
Interest on FHLB advances		869		590		2,743		2,263
Total Interest expense		3,731		2,453		12,321		9,248
Net Interest Income		6,109		6,196		24,166		24,391
Provision for loan losses		300		200		1,050		850
Net interest income after provision for loan losses		5,809		5,996		23,116		23,541
Noninterest income
Income from fiduciary activities		633		596		2,705		2,530
Service charges on deposits		1,309		1,149		4,852		4,348
Other service charges, commissions and fees		424		332		1,779		1,523
Income from bank owned life insurance		120		116		497		458
Net gain on available-for-sale securities		0		4		10		215
Other operating income		148		104		522		346
Total noninterest income		2,634		2,301		10,365		9,420
Noninterest Expenses
Salaries and employee benefits		3,712		3,388		14,378		13,201
Occupancy and equipment		870		757		3,190		2,985
Supplies		130		112		491		427
Postage and courier		132		105		489		443
Service fees		226		183		698		615
Data processing		163		149		612		591
Marketing		279		63		748		342
Customer Development		134		112		547		404
Employee professional development		138		109		546		470
Other operating expenses		435		387		1,886		1,694
Total noninterest expenses		6,219		5,365		23,585		21,172
Income before taxes		2,224		2,932		9,896		11,789
Applicable income taxes		588		844		2,628		3,209
Net Income	$	1,636	$	2,088	$	7,268	$	8,580
Per Share
Weighted average number of common shares - basic		4,016,500		4,010,421		4,016,026		3,997,388
Weighted average number of common shares - diluted		4,082,747		4,098,752		4,092,696		4,086,069
Basic Earnings per share	$	0.41	$	0.52	$	1.81	$	2.15
Diluted Earnings per share	$	0.40	$	0.51	$	1.78	$	2.10
Cash Dividends Declared	$	0.17	$	0.16	$	0.66	$	0.62