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 17, 2008

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 17, 2008 Old Point Financial Corporation issued a press release reporting earnings and their financial results for its fourth quarter of 2007 which ended December 31, 2007. 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 17, 2008

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 17, 2008
	/s/ Robert F. Shuford
	Robert F. Shuford
	Chairman of the Board
	President & Chief Executive Officer

EX-99.1

Exhibit 99.1

January 17, 2008

OLD POINT FINANCIAL CORPORATION ANNOUNCES EARNINGS

• Fourth quarter 2007 net income up 12.6%

• 2007 earnings up 13.5%

HAMPTON, VA. Old Point Financial Corporation (Nasdaq “OPOF”) announced today fourth quarter net income for the quarter ended December 31, 2007 of $2.0 million, as compared to $1.8 million in the fourth quarter of 2006, an increase of 12.6%. Basic earnings per share for the quarter are $.42 and fully diluted net income per share is $.41.

Total assets at December 31, 2007 were $822.6 million, as compared with $847.5 million in 2006. The 3.0% decrease in assets reflects Old Point Financial Corporation’s continuing balance sheet realignment as maturing securities have been used to retire $45 million in Federal Home Loan Bank (FHLB) advances. Net loans increased by 2.3% to $592.0 million and total deposits increased by 1.3%, to $596.2 million.

Net income for the quarter was positively impacted by the net interest margin. Interest income rose by $72 thousand, or 0.6%, from the quarter ending December 31, 2006, and interest expense decreased by $52 thousand, or 0.9%. Interest expense decreased largely because of the repayment of $45 million in FHLB advances during 2007. The net interest margin therefore improved by $124 thousand, or 2.0% over the comparable quarter in 2006. Noninterest income for the fourth quarter of 2007 rose by $358 thousand over 2006, a 12.4% increase. The increase was led by increases in debit card income, service charges on deposit accounts and income from fiduciary services. Noninterest expense increased by $133 thousand, or 2.1% from the fourth quarter of 2006.

Fiscal Year 2007 Results

Net income for 2007 was $8.0 million, as compared with 2006 net income of $7.0 million, an increase of 13.5%. Return on Average Assets (ROA) for 2007 was 0.97%, and Return on Average Equity (ROE) was 10.29%.

Net interest income after provision for loan losses for 2007 was $24.7 million as compared with $23.4 million in 2006, an increase of 5.4%. Total interest income rose by 9.2% or $4.1 million, and was partially offset by an increase of total interest expense of $3.1 million, or 15.2%.

Total non interest income for 2007 was $12.5 million, up 9.5%, or $1.1 million over 2006. Income from fiduciary activities contributed $447 thousand to the increase.

Non interest expenses increased by $842 thousand, or 3.3% over 2006. Salaries and employee benefits were the largest component of the increase, growing at a rate of 4.9%.

Net Interest Margin (NIM) on a fully tax equivalent basis for 2007 was 3.42%, unchanged from 2006 NIM.

Non-Performing Assets (NPAs) as a percentage of total assets were at 0.38% at the end of 2007, compared with 0.17% at the end of 2006. NPAs at December 31, 2007 totaled $3.2 million, as compared with $1.5 million at the end of 2006. NPAs for 2007 consisted of $621 thousand in loans 90 days or more past due but still accruing interest, $1.3 million in restructured debt, $1.1 million in other real estate owned (OREO), and $84 thousand in non-accrual loans. The $1.1 million in OREO consists of two residential properties acquired in December 2007 and carried at market value, and an undeveloped branch site.

Loans Charged Off (net of recoveries) totaled $654 thousand in 2007, versus $864 thousand in 2006.

Provision for Loan Losses in 2007 decreased by $200 thousand, to $1.0 million, owing to the favorable decrease in loan losses.

Basic earnings per share for 2007 were $1.61 as compared with $1.41 in 2006, and diluted earnings per share were $1.59 and $1.39, respectively. The Company paid out $0.61 in dividends per common share during 2007. Earnings and dividends have been adjusted to reflect the 5-for-4 stock split in the form of a dividend in October, 2007.

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)

Assets

	(dollars in Thousands)
	31-Dec-07		31-Dec-06
Cash and due from banks	$	16,367	$	18,571
Federal Funds Sold		35,197		18,213
Cash and Cash Equivalents	$	51,564	$	36,784
Securities available for sale, at market		129,055		184,806
Securities to be held to maturity (fair value approximates $2,947 and $3,454)		2,904		3,432
Loans (net of allowance of $5,130 and $4,784)		592,014		578,809
Premises and Equipment, net		27,002		26,410
Bank owned life insurance		12,801		10,608
Other Assets		7,217		6,672
Total Assets	$	822,557	$	847,521
Liabilities
	31-Dec-07		31-Dec-06
Noninterest-bearing deposits	$	95,970	$	96,653
Savings deposits		185,823		201,273
Time Deposits		314,372		290,488
Total Deposits		596,165		588,414
Federal funds purchased and securities sold under agreement to repurchase		64,225		57,053
Federal Home Loan Bank Advances		80,000		125,000
Accrued expenses and other liabilities		2,460		2,389
Total Liabilities	$	742,850	$	772,856
Stockholders’ Equity
Common stock, $5.00 par value		24,538		19,961

	2007	2006
Shares Authorized	10,000,000	10,000,000
Shares Outstanding	4,907,567	3,992,155

Additional paid-in capital		15,357			14,719
Retained Earnings		40,039			42,245
Accumulated other comprehensive income(loss)		(227	)		(2,260	)
Total stockholders’ equity		79,707			74,665
Total liabilities and stockholders’ equity	$	822,557		$	847,521

Old Point Financial Corporation

Consolidated Statements of Earnings (Unaudited)

	3 Mo Ended 31-Dec-07		3 Mo Ended 31-Dec-06		12 Mo Ended 31-Dec-07		12 Mo Ended 31-Dec-06
	Dollars in thousands, except per share amounts
Interest Income
Interest and Fees on loans	$	10,526	$	10,314	$	41,887	$	37,440
Interest on federal funds sold		350		232		994		467
Interest on securities
Taxable		1,087		1,276		4,470		5,118
Exempt from Federal income tax		294		340		1,247		1,445
Dividends and interest on all other securities		100		123		423		415
Total interest income		12,357		12,285		49,021		44,885
Interest Expense
Interest on savings deposits		578		617		2,502		2,290
Interest on time deposits		3,695		3,261		13,949		11,003
Interest on federal funds purchased and securities sold under agreement to repurchase and other borrowings		503		545		1,970		1,913
Interest on FHLB advances		1,121		1,526		4,928		5,070
Total Interest expense		5,897		5,949		23,349		20,276
Net Interest Income		6,460		6,336		25,672		24,609
Provision for loan losses		300		300		1,000		1,200
Net interest income after provision for loan losses		6,160		6,036		24,672		23,409
Noninterest income
Income from fiduciary activities		769		677		3,116		2,669
Service charges on deposits		1,547		1,381		5,779		5,445
Other service charges, commissions and fees		705		482		2,480		2,197
Income from bank owned life insurance		166		140		622		547
Net gain on available-for-sale securities		0		2		3		9
Other operating income		51		198		486		539
Total noninterest income		3,238		2,880		12,486		11,406
Noninterest Expenses
Salaries and employee benefits		4,007		3,826		15,931		15,192
Occupancy and equipment		924		875		3,640		3,514
Service fees		109		163		370		706
Data processing		231		187		878		738
Marketing		160		276		724		775
Customer Development		181		218		696		684
Employee professional development		145		129		645		591
Other operating expenses		783		733		3,139		2,981
Total noninterest expenses		6,540		6,407		26,023		25,181
Income before taxes		2,858		2,509		11,135		9,634
Applicable income taxes		813		692		3,166		2,610
Net Income	$	2,045	$	1,817	$	7,969	$	7,024
Per Share
Weighted average number of common shares—basic		4,912,654		4,990,194		4,956,880		4,989,960
Weighted average number of common shares—diluted		4,947,219		5,057,209		4,997,822		5,060,651
Basic Earnings per share	$	0.42	$	0.36	$	1.61	$	1.41
Diluted Earnings per share	$	0.41	$	0.36	$	1.59	$	1.39
Cash Dividends Declared	$	0.16	$	0.14	$	0.61	$	0.56

Selected Ratios

	12 Months Ended 31-Dec-07			12 Months Ended 31-Dec-06
Net Interest Margin		3.42	%		3.42	%
NPAs/Total Assets		0.38	%		0.17	%
Net Charge Offs/Total Loans		0.11	%		0.15	%
Allowance for Loan Losses/Total Loans		0.86	%		0.82	%
Non-Performing Assets (NPAs) (in thousands)
Loans > 90 days past due, but still accruing interest	$	621		$	826
Restructured Loans	$	1,320		$	0
Other Real Estate Owned	$	1,120		$	165
Nonaccrual Loans	$	84		$	458
Total Non-perfoming Assets	$	3,145		$	1,449
Loans Charged Off (net of recoveries) (000)	$	654		$	864