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 16, 2007

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 16, 2007, Old Point Financial Corporation issued a press release reporting earnings and their financial results for its fourth quarter of 2006, which ended December 31, 2006. 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 16, 2007

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 16, 2007

/s/ Robert F. Shuford

Robert F. Shuford

Chairman of the Board

President & Chief Executive Officer

EX-99.1

Exhibit 99.1

January 16, 2007

OLD POINT FINANCIAL CORPORATION FOURTH QUARTER 2006

EARNINGS RELEASE

HAMPTON, VA. Old Point Financial Corporation (Nasdaq “OPOF”) announced today fourth quarter net income for the quarter ended December 31, 2006 of $1.8 million, as compared to $1.6 million in the fourth quarter of 2005, an increase of 11.1%. Basic earnings per share for the quarter are $0.46 and fully diluted net income per share is $0.45.

Total assets achieved a record level of $847.5 million, 14.5% more than 2005. Asset growth was fueled largely by loan growth of $88.6 million, which represents an increase of 18.1% over 2005. Total deposits increased by 9.6%, to $588.4 million.

Net income for the quarter was impacted by the net interest margin. Interest income rose by $2.4 million, or 24.8%, during the quarter and interest expense rose by $2.2 million, or 59.4%. The net interest margin therefore, improved by $227 thousand, or 3.9%, over the comparable quarter in 2005. Noninterest income for the fourth quarter of 2006 rose by $246 thousand over 2005, a 9.4% increase. The increase was led by increases in debit card income, service charges on deposit accounts and income from brokered mortgages. Noninterest expense for the quarter increased by $188 thousand, or 3.0%.

Fiscal Year 2006 Results

Net income for 2006 was $7.0 million, as compared with 2005 net income of $7.3 million. Return on Average Assets (ROA) for 2006 was .88%, and Return on Average Equity (ROE) was 9.68%.

Net interest income after provision for loan losses for 2006 was $23.4 million as compared with $23.1 million in 2005. Total interest and dividend income rose by 23.0%, or $8.4 million, but was partially offset by an increase of total interest expense of $7.9 million, or 64.6%. While noninterest income rose by $1.0 million, noninterest expenses increased by $1.6 million.

“We continue to build our franchise,” said Robert F. Shuford, President, Chairman and CEO of the Corporation. “We opened one office during 2006, in Eagle Harbor in Isle of Wight County. In addition, we purchased two properties during the year for future development: an existing building in the Hilltop area of Virginia Beach and an undeveloped property in the Ghent section of Norfolk.”

Basic earnings per share for 2006 were $1.76, and diluted earnings per share were $1.73. The Company paid out $0.70 in dividends per common share during 2006.

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. Web: 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-06			31-Dec-05
Assets
Cash and due from banks			$	18,571		$	13,602
Federal Funds Sold				18,213			2,004
Cash and Cash Equivalents			$	36,784		$	15,606
Securities available for sale, at market				184,806			192,943
Securities to be held to maturity (fair value approximates $3,454 and $3,141)				3,432			3,123
Loans (net of allowance of $4,784 and $4,448)				578,809			490,249
Premises and Equipment, net				26,410			21,277
Bank owned life insurance				10,608			9,458
Other Assets				6,672			7,337
Total Assets			$	847,521		$	739,993
			31-Dec-06			31-Dec-05
Liabilities
Noninterest-bearing deposits			$	96,653		$	98,686
Savings deposits				201,273			195,833
Time Deposits				290,488			242,225
Total Deposits				588,414			536,744
Federal funds purchased and securities sold under agreement to repurchase				57,053			50,622
Federal Home Loan Bank Advances				125,000			80,000
Accrued expenses and other liabilities				2,389			1,571
Total Liabilities			$	772,856		$	668,937
Stockholders’ Equity
Common stock, $5.00 par value				19,961			20,068
	2006	2005
Shares Authorized	10,000,000	10,000,000
Shares Outstanding	3,992,155	4,013,553
Additional paid-in capital				14,719			14,320
Retained Earnings				42,245			39,074
Accumulated other comprehensive income (loss)				(2,260	)		(2,406	)
Total stockholders’ equity				74,665			71,056
Total liabilities and stockholders’ equity			$	847,521		$	739,993

Old Point Financial Corporation

Consolidated Statements of Earnings (Unaudited)

	3 Mo Ended 31-Dec-06		3 Mo Ended 31-Dec-05		12 Mo Ended 31-Dec-06		12 Mo Ended 31-Dec-05
	(Dollars in thousands, except per share amounts)
Interest Income
Interest and Fees on loans	$	10,314	$	7,988	$	37,440	$	28,976
Interest on federal funds sold		232		60		467		270
Interest on securities
Taxable		1,276		1,314		5,118		5,311
Exempt from Federal income tax		340		407		1,445		1,705
Dividends and interest on all other securities		123		71		415		225
Total interest income		12,285		9,840		44,885		36,487
Interest Expense
Interest on savings deposits		617		397		2,290		1,431
Interest on time deposits		3,261		2,099		11,003		6,987
Interest on federal funds purchased and securities sold under agreement to repurchase and other borrowings		545		366		1,913		1,160
Interest on FHLB advances		1,526		869		5,070		2,743
Total Interest expense		5,949		3,731		20,276		12,321
Net Interest Income		6,336		6,109		24,609		24,166
Provision for loan losses		300		300		1,200		1,050
Net interest income after provision for loan losses		6,036		5,809		23,409		23,116
Noninterest income
Income from fiduciary activities		677		633		2,669		2,705
Service charges on deposits		1,381		1,309		5,445		4,852
Other service charges, commissions and fees		482		424		2,197		1,779
Income from bank owned life insurance		140		120		547		497
Net gain on available-for-sale securities		2		0		9		10
Other operating income		198		148		539		522
Total noninterest income		2,880		2,634		11,406		10,365
Noninterest Expenses
Salaries and employee benefits		3,826		3,712		15,192		14,378
Occupancy and equipment		875		870		3,514		3,190
Supplies		139		130		525		491
Postage and courier		131		132		516		489
Service fees		163		226		706		698
Data processing		187		163		738		612
Marketing		276		279		775		748
Customer Development		218		134		684		547
Employee professional development		129		138		591		546
Other operating expenses		463		435		1,940		1,886
Total noninterest expenses		6,407		6,219		25,181		23,585
Income before taxes		2,509		2,224		9,634		9,896
Applicable income taxes		692		588		2,610		2,628
Net Income	$	1,817	$	1,636	$	7,024	$	7,268
Per Share
Weighted average number of common shares - basic		3,992,155		4,016,500		3,991,968		4,016,026
Weighted average number of common shares - diluted		4,045,767		4,082,747		4,048,521		4,092,696
Basic Earnings per share	$	0.46	$	0.41	$	1.76	$	1.81
Diluted Earnings per share	$	0.45	$	0.40	$	1.73	$	1.78
Cash Dividends Declared	$	0.18	$	0.17	$	0.70	$	0.66