(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes x No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

~~3,999,233~~4,922,592 shares of common stock ($5.00 par value) outstanding as of ~~April 30,~~October 31, 2007


	March 31, 2007			December 31, 2006			September 30, 2007			December 31, 2006
	(unaudited)						(unaudited)
Assets
Cash and due from banks	$	14,150,306		$	18,571,359		$	14,266,662		$	18,571,359
Federal funds sold		28,279,303			18,213,002			38,182,740			18,213,002

Cash and cash equivalents		42,429,609			36,784,361			52,449,402			36,784,361
Securities available-for-sale, at fair value		175,617,732			184,806,097			143,112,713			184,806,097
Securities held-to-maturity (fair value approximates $3,556,547 and $3,454,019)		3,532,000			3,432,000
Loans, net of allowance for loan losses of $4,949,923 and $4,783,685		577,811,791			578,809,269
Securities held-to-maturity (fair value approximates $3,670,701 and $3,454,019)								3,632,000			3,432,000
Loans, net of allowance for loan losses of $5,133,009 and $4,783,685								581,870,509			578,809,269
Premises and equipment, net		26,178,838			26,409,594			26,665,380			26,409,594
Bank owned life insurance		10,756,279			10,608,106
Bank-owned life insurance								12,632,868			10,608,106
Other assets		6,926,114			6,671,859			7,214,658			6,671,859

	$	843,252,363		$	847,521,286		$	827,577,530		$	847,521,286

Liabilities & Stockholders’ Equity

Deposits:
Noninterest-bearing deposits	$	98,978,037		$	96,652,975		$	96,997,425		$	96,652,975
Savings and interest-bearing demand deposits		206,876,694			201,273,300
Savings deposits								189,949,008			201,273,300
Time deposits		290,729,901			290,488,326			313,751,567			290,488,326

Total deposits		596,584,632			588,414,601			600,698,000			588,414,601
Federal funds purchased, repurchase agreements and other borrowings		52,139,063			57,052,656			55,404,558			57,052,656
Federal Home Loan Bank advances		115,000,000			125,000,000			90,000,000			125,000,000
Accrued expenses and other liabilities		3,324,412			2,388,777			3,356,949			2,388,777

Total liabilities		767,048,107			772,856,034			749,459,507			772,856,034
Commitments and contingencies
Stockholders’ Equity:
Common stock, $5 par value, 10,000,000 shares authorized; 3,992,934 and 3,992,155 shares issued		19,964,670			19,960,775

Stockholders’ equity:
Common stock, $5 par value, 10,000,000 shares authorized; 3,944,711 and 3,992,155 shares issued								19,723,555			19,960,775
Additional paid-in capital		14,951,231			14,718,903			15,296,590			14,718,903
Retained earnings		43,086,279			42,245,413			44,095,213			42,245,413
Accumulated other comprehensive income (loss)		(1,797,924	)		(2,259,839	)
Accumulated other comprehensive loss								(997,335	)		(2,259,839	)

Total stockholders’ equity		76,204,256			74,665,252			78,118,023			74,665,252

	$	843,252,363		$	847,521,286		$	827,577,530		$	847,521,286


	Three Months Ended March 31,				Three Months Ended September 30,				Nine Months Ended September 30,
	2007		2006		2007		2006		2007		2006
	(unaudited)				(unaudited)
Interest and Dividend Income:
Interest and fees on loans	$	10,237,183	$	8,299,035	$	10,654,274	$	9,822,512	$	31,361,052	$	27,126,679
Interest on federal funds sold		153,482		52,325		346,426		102,069		643,702		235,233
Interest on securities:
Taxable		1,223,870		1,288,073		1,009,048		1,275,902		3,383,776		3,841,542
Tax-exempt		326,472		388,284		305,910		349,971		953,561		1,105,211
Dividends and interest on all other securities		125,736		87,349		102,052		112,799		323,413		291,797

Total interest and dividend income		12,066,743		10,115,066		12,417,710		11,663,253		36,665,504		32,600,462

Interest Expense:
Interest on savings and interest-bearing demand deposits		632,763		493,593
Interest on savings deposits						630,233		608,301		1,923,466		1,672,906
Interest on time deposits		3,311,731		2,278,765		3,599,098		2,936,614		10,253,897		7,742,252
Interest on federal funds purchased, securities sold under agreement to repurchase and other borrowings		498,509		407,821		489,580		496,439		1,467,325		1,368,653
Interest on Federal Home Loan Bank advances		1,415,023		984,334		1,171,954		1,405,214		3,807,247		3,543,260

Total interest expense		5,858,026		4,164,513		5,890,865		5,446,568		17,451,935		14,327,071

Net interest income		6,208,717		5,950,553		6,526,845		6,216,685		19,213,569		18,273,391
Provision for loan losses		300,000		300,000		200,000		300,000		700,000		900,000

Net interest income, after provision for loan losses		5,908,717		5,650,553
Net interest income after provision for loan losses						6,326,845		5,916,685		18,513,569		17,373,391

Noninterest Income:
Income from fiduciary activities		796,914		677,414		766,967		652,676		2,346,658		1,991,576
Service charges on deposit accounts		1,392,947		1,333,935		1,388,681		1,338,497		4,231,504		4,063,994
Other service charges, commissions and fees		585,291		535,349		608,760		461,678		1,775,907		1,715,315
Income from bank owned life insurance		148,173		133,153
Net gain on available-for-sale securities		3,168		1,346
Income from bank-owned life insurance						158,745		140,332		455,091		407,060
Gain on available-for-sale securities, net						0		5,406		3,168		7,302
Other operating income		152,053		106,156		112,717		114,892		435,298		340,504

Total noninterest income		3,078,546		2,787,353		3,035,870		2,713,481		9,247,626		8,525,751

Noninterest Expense:
Salaries and employee benefits		3,902,298		3,711,596		3,981,943		3,830,050		11,924,354		11,366,697
Occupancy and equipment		898,587		891,520		928,315		861,492		2,716,096		2,638,802
Postage and courier		127,783		139,473
Service fees		75,031		168,727		94,042		174,322		260,083		543,508
Data processing		203,950		169,023		223,340		195,525		646,852		550,797
Advertising		173,301		141,843
Marketing						187,964		167,620		564,346		498,827
Customer development		176,540		167,405		176,599		171,316		515,663		465,645
Employee professional development		149,220		132,053		174,607		170,645		500,211		461,929
Other		618,533		618,332		817,623		717,668		2,355,925		2,247,847

Total noninterest expenses		6,325,243		6,139,972		6,584,433		6,288,638		19,483,530		18,774,052

Income before income taxes		2,662,020		2,297,934		2,778,282		2,341,528		8,277,665		7,125,090
Income tax expenses		745,108		607,565
Income tax expense						798,062		630,500		2,353,220		1,917,872

Net income	$	1,916,912	$	1,690,369	$	1,980,220	$	1,711,028	$	5,924,445	$	5,207,218

Basic Earnings per Share

Basic Earnings per Share:
Average shares outstanding		3,989,413		3,994,992		4,939,269		4,990,103		4,971,784		4,989,881
Net income per share of common stock	$	0.48	$	0.42	$	0.40	$	0.34	$	1.19	$	1.04

Diluted Earnings per Share
Diluted Earnings per Share:
Average shares outstanding		4,031,355		4,056,488		4,974,275		5,059,145		5,014,856		5,063,658
Net income per share of common stock	$	0.48	$	0.42	$	0.40	$	0.34	$	1.18	$	1.03

Note - Per share data adjusted for 5 for 4 stock split in the form of a dividend declared on August 16, 2007 and paid on October 1, 2007.


(Unaudited)	Shares of Common Stock		Common Stock			Additional Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total			Shares of Common Stock		Common Stock			Additional Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
FOR THREE MONTHS ENDED MARCH 31, 2007

FOR NINE MONTHS ENDED SEPTEMBER 30, 2007
Balance at beginning of period	3,992,155		$	19,960,775		$	14,718,903	$	42,245,413		$	(2,259,839	)	$	74,665,252		3,992,155		$	19,960,775		$	14,718,903	$	42,245,413		$	(2,259,839	)	$	74,665,252
Comprehensive income:
Net income	—			—			—		1,916,912			—			1,916,912		—			—			—		5,924,445			—			5,924,445
Unrealized holding gains arising during the period (net of tax, $239,033)												464,006			464,006
Reclassification adjustment, (net of tax, $1,077)	—			—			—		—			(2,091	)		(2,091	)
Unrealized holding gains arising during the period (net of tax, $651,458)																												1,264,595			1,264,595
Reclassification adjustment (net of tax, $1,077)																	—			—			—		—			(2,091	)		(2,091	)

Total comprehensive income	—			—			—		1,916,912			461,915			2,378,827		—			—			—		5,924,445			1,262,504			7,186,949
Sale of common stock	6,313			31,565			232,328		(227,775	)		—			36,118		17,741			88,705			548,909		(482,693	)		—			154,921
Repurchase and retirement of common stock	(5,534	)		(27,670	)				(129,888	)					(157,558	)	(65,185	)		(325,925	)				(1,366,560	)					(1,692,485	)
Cash dividends ($.18 per share)	—			—			—		(718,383	)		—			(718,383	)
Nonqualified stock options																	—			—			28,778		—						28,778
Cash dividends ($0.56 per share)																	—			—			—		(2,225,392	)		—			(2,225,392	)

Balance at end of period	3,992,934		$	19,964,670		$	14,951,231	$	43,086,279		$	(1,797,924	)	$	76,204,256		3,944,711		$	19,723,555		$	15,296,590	$	44,095,213		$	(997,335	)	$	78,118,023

FOR THREE MONTHS ENDED MARCH 31, 2006

FOR NINE MONTHS ENDED SEPTEMBER 30, 2006
Balance at beginning of period	4,013,553		$	20,067,765		$	14,319,580	$	39,074,325		$	(2,405,624	)	$	71,056,046		4,013,553		$	20,067,765		$	14,319,580	$	39,074,325		$	(2,405,624	)	$	71,056,046
Comprehensive income:
Net income	—			—			—		1,690,369			—			1,690,369		—			—			—		5,207,218			—			5,207,218
Unrealized holding losses arising during the period (net of tax, $149,128)												(289,485	)		(289,485	)
Reclassification adjustment, (net of tax, $458)	—			—			—		—			(888	)		(888	)
Unrealized holding gains arising during the period (net of tax, $68,727)																												133,412			133,412
Reclassification adjustment (net of tax, $2,483)																	—			—			—		—			(4,819	)		(4,819	)

Total comprehensive income (loss)									1,690,369			(290,373	)		1,399,996
Total comprehensive income																									5,207,218			128,593			5,335,811
Sale of common stock	5,445			27,225			154,151		(82,273	)		—			99,103		12,215			61,075			358,107		(260,476	)		—			158,706
Repurchase and retirement of common stock	(31,118	)		(155,590	)		—		(739,850	)					(895,440	)	(33,613	)		(168,065	)				(799,624	)					(967,689	)
Cash dividends ($.17 per share)	—			—			—		(677,455	)		—			(677,455	)
Nonqualified stock options																	—			—			41,216		—						41,216
Cash dividends ($0.52 per share)																	—			—			—		(2,074,228	)		—			(2,074,228	)

Balance at end of period	3,987,880		$	19,939,400		$	14,473,731	$	39,265,116		$	(2,695,997	)	$	70,982,250		3,992,155		$	19,960,775		$	14,718,903	$	41,147,215		$	(2,277,031	)	$	73,549,862


	Three Months Ended March 31,						Nine Months Ended September 30,
	2007			2006			2007			2006
	(unaudited)						(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	1,916,912		$	1,690,369		$	5,924,445		$	5,207,218
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		423,506			381,105			1,267,151			1,174,308
Provision for loan losses		300,000			300,000			700,000			900,000
Net gain on sale of available-for-sale securities		(3,168	)		(1,346	)		(3,168	)		(7,302	)
Net amortization (accretion) of securities		(14,995	)		(10,891	)
Net accretion of securities								(49,408	)		(38,806	)
Loss (gain) on disposal of equipment		—			(100	)		(14,873	)		4,954
(Increase) in bank-owned life insurance		(148,173	)		(133,153	)
(Increase) in other assets		(492,211	)		(373,110	)
Changes in assets/liabilities:
Increase in bank-owned life insurance								(2,024,762	)		(1,007,667	)
Increase in other assets								(1,193,178	)		(1,172,343	)
Increase in other liabilities		935,635			1,007,360			968,172			1,367,976

Net cash provided by operating activities		2,917,506			2,860,234			5,574,379			6,428,338

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of available-for-sale securities		(806,555	)		(1,484,481	)		(14,797,010	)		(4,690,555	)
Purchases of held-to-maturity securities		(200,000	)		(200,000	)		(800,000	)		(500,000	)
Proceeds from maturities and calls of securities		10,192,954			5,375,000			56,470,854			9,415,950
Proceeds from sales of available-for-sale securities		620,000			590,000			2,585,000			1,895,000
Loans made to customers		(46,837,646	)		(79,163,002	)		(202,955,665	)		(243,719,248	)
Principal payments received on loans		47,535,124			51,908,583			199,194,424			164,260,571
Purchases of premises and equipment		(192,750	)		(579,441	)		(1,508,064	)		(6,397,912	)

Net cash provided by (used in) investing activities		10,311,127			(23,553,341	)		38,189,539			(79,736,194	)

CASH FLOWS FROM FINANCING ACTIVITIES
Increase in non-interest bearing deposits		2,325,062			7,197,956
Increase in noninterest-bearing deposits								344,450			2,605,928
Increase in savings deposits		5,603,394			9,432,429			(11,324,292	)		(379,483	)
Proceeds from the sale of time deposits		48,034,945			42,463,159			109,041,988			143,077,065
Payments for maturing time deposits		(47,793,370	)		(35,392,872	)		(85,778,747	)		(112,806,401	)
Increase (decrease) in federal funds purchased and repurchase agreements		(4,557,048	)		3,693,691			(1,606,163	)		12,948,341
Increase (decrease) in Federal Home Loan Bank advances		(10,000,000	)		15,000,000			(35,000,000	)		35,000,000
(Decrease) in interest-bearing demand notes and other borrowed money		(356,545	)		(1,656,724	)
Decrease in interest-bearing demand notes and other borrowed money								(41,935	)		(1,162,063	)
Proceeds from issuance of common stock		36,118			99,103			154,921			158,706
Repurchase and retirement of common stock		(157,558	)		(895,440	)		(1,692,485	)		(967,689	)
Effect of nonqualified stock options								28,778			41,216
Cash dividends paid on common stock		(718,383	)		(677,455	)		(2,225,392	)		(2,074,228	)

Net cash provided by (used in) financing activities		(7,583,385	)		39,263,847			(28,098,877	)		76,441,392

Net increase in cash and cash equivalents		5,645,248			18,570,740			15,665,041			3,133,536
Cash and cash equivalents at beginning of period		36,784,361			15,606,024			36,784,361			15,606,024

Cash and cash equivalents at end of period	$	42,429,609		$	34,176,764		$	52,449,402		$	18,739,560

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for:
Interest	$	6,037,955		$	4,008,816		$	17,491,823		$	13,704,747

Income tax							$	2,475,000		$	1,975,000
SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS
Unrealized gain (loss) on investment securities		699,871			(439,959	)
Unrealized gain on investment securities							$	1,912,885		$	194,837
Loans transferred to other real estate owned		240,000			—		$	240,000		$	—

The accompanying unaudited consolidated financial statements of Old Point Financial Corporation (the Company) and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. All significant intercompany balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments and reclassifications consisting of a normal and recurring nature considered necessary to present fairly the financial positions at ~~March 31,~~September 30, 2007 and December 31, 2006, the results of operations for the three months and nine months ended ~~March 31,~~September 30, 2007 and 2006, and statements of cash flows and changes in stockholders’ equity for the ~~three~~nine months ended ~~March 31,~~September 30, 2007 and 2006. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year.

On August 16, 2007 the Company declared a 5 for 4 stock split in the form of a dividend payable October 1, 2007. All per share data presented in this Form 10-Q has been updated to reflect the 5 for 4 stock split in the form of a dividend.

These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s ~~2006~~ annual report on Form ~~10-K.~~10-K for the year ended December 31, 2006. Certain previously reported amounts have been reclassified to conform to current period presentation.

The Company maintains a website on the Internet atwww.oldpoint.com. The Company makes available free of charge, on or through its website, its proxy statements, annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports as soon as reasonably practicable after such material is electronically filed with the Securities and Exchange Commission (SEC). The information available at the Company’s Internet address is not part of this Form 10-Q or any other report filed by the Company with the SEC. The public may read and copy any documents the Company files at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The Company’s SEC filings can also be obtained on the SEC’s website on the Internet atwww.sec.gov.

Amortized costs and fair values of securities held-to-maturity at ~~March 31,~~September 30, 2007 and December 31, 2006 are as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)									(in thousands)
March 31, 2007
September 30, 2007
Obligations of U.S. Government agencies	$	2,800	$	—	$	(17	)	$	2,783	$	2,900	$	4	$	(5	)	$	2,899
Obligations of state and political subdivisions		732		42		—			774		732		40		—			772

Total	$	3,532	$	42	$	(17	)	$	3,557	$	3,632	$	44	$	(5	)	$	3,671


December 31, 2006
Obligations of U.S. Government agencies	$	2,700	$	—	$	(24	)	$	2,676	$	2,700	$	—	$	(24	)	$	2,676
Obligations of state and political subdivisions		732		46		—			778		732		46		—			778

Total	$	3,432	$	46	$	(24	)	$	3,454	$	3,432	$	46	$	(24	)	$	3,454

Amortized costs and fair values of securities available-for-sale at ~~March 31,~~September 30, 2007 and December 31, 2006 are as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)									(in thousands)
March 31, 2007
United States Treasury securities	$	994	$	—	$	(1	)	$	993
September 30, 2007
U.S. Treasury securities										$	994	$	1	$	—		$	995
Obligations of U.S. Government agencies		139,986		—		(2,152	)		137,834		109,759		22		(845	)		108,936
Obligations of state and political subdivisions		28,469		416		—			28,885		25,999		298		—			26,297
Money market investments		907		—		—			907		1,011		—		—			1,011
Federal Home Loan Bank stock - restricted		6,690		—		—			6,690
Federal Reserve Bank stock - restricted		169		—		—			169
Federal Home Loan Bank stock—restricted											5,565		—		—			5,565
Federal Reserve Bank stock—restricted											169		—		—			169
Other marketable equity securities		168		—		(28	)		140		168		—		(28	)		140

Total	$	177,383	$	416	$	(2,181	)	$	175,618	$	143,665	$	321	$	(873	)	$	143,113


December 31, 2006
United States Treasury securities	$	981	$	—	$	—		$	981
U.S. Treasury securities										$	981	$	—	$	—		$	981
Obligations of U.S. Government agencies		148,981		—		(2,895	)		146,086		148,981		—		(2,895	)		146,086
Obligations of state and political subdivisions		29,157		458		—			29,615		29,157		458		—			29,615
Money market investments		721		—		—			721		721		—		—			721
Federal Home Loan Bank stock - restricted		7,094		—		—			7,094
Federal Reserve Bank stock - restricted		169		—		—			169
Federal Home Loan Bank stock—restricted											7,094		—		—			7,094
Federal Reserve Bank stock—restricted											169		—		—			169
Other marketable equity securities		168		—		(28	)		140		168		—		(28	)		140

Total	$	187,271	$	458	$	(2,923	)	$	184,806	$	187,271	$	458	$	(2,923	)	$	184,806

Information pertaining to securities with gross unrealized losses at ~~March 31,~~September 30, 2007 and December 31, 2006, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:


	March 31, 2007												September 30, 2007
	Less Than Twelve Months				More Than Twelve Months				Total				Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(in thousands)												(in thousands)
Securities Available-for-Sale
Debt securities:
United States Treasury securities	$	1	$	993	$	—	$	—	$	1	$	993
Obligations of U.S. Government agencies		—		—		2,152		137,834		2,152		137,834	$	—	$	—	$	845	$	98,914	$	845	$	98,914

Total debt securities		1		993		2,152		137,834		2,153		138,827		—		—		845		98,914		845		98,914
Other marketable equity securities		—		—		28		22		28		22		—		—		28		22		28		22

Total securities available-for-sale	$	1	$	993	$	2,180	$	137,856	$	2,181	$	138,849	$	—	$	—	$	873	$	98,936	$	873	$	98,936


Securities Held-to-Maturity
Obligations of U.S. Government agencies	$	1	$	999	$	16	$	1,584	$	17	$	2,583	$	—	$	—	$	5	$	1,095	$	5	$	1,095

Total securities held-to-maturity	$	1	$	999	$	16	$	1,584	$	17	$	2,583	$	—	$	—	$	5	$	1,095	$	5	$	1,095

Total	$	2	$	1,992	$	2,196	$	139,440	$	2,198	$	141,432	$	—	$	—	$	878	$	100,031	$	878	$	100,031

The Company has the ability and intent to hold these securities until maturity. The securities are impaired primarily due to rising interest ~~rates.~~rates after the securities were purchased. None of the securities are impaired due to credit issues. Therefore, securities with a loss are considered temporarily impaired.

Loans at ~~March 31,~~September 30, 2007 and December 31, 2006 are summarized as follows:


	March 31, 2007			December 31, 2006			September 30, 2007			December 31, 2006
	(in thousands)						(in thousands)
Commercial and other loans	$	63,908		$	67,697		$	69,221		$	67,697
Real estate loans:
Construction		73,179			81,227			63,681			81,227
Farmland		53			220			47			220
Equity lines of credit		28,020			26,809			32,037			26,809
1-4 family residential		122,926			120,915			121,496			120,915
Multifamily residential		5,423			5,898			7,075			5,898
Nonfarm nonresidential		225,206			213,606			235,837			213,606
Installment loans to individuals		60,516			63,670			54,232			63,670
Tax-exempt loans		3,161			3,191			3,114			3,191

Total loans		582,392			583,233			586,740			583,233
Less: Allowance for loan losses		(4,950	)		(4,784	)		(5,133	)		(4,784	)
Net deferred loan costs		370			360			264			360

Loans, net	$	577,812		$	578,809		$	581,871		$	578,809

The following summarizes activity in the allowance for loan losses ~~at March 31,~~for the nine months ended September 30, 2007 and for the year ended December 31, 2006:


	March 31, 2007			December 31, 2006			September 30, 2007			December 31, 2006
	(in thousands)						(in thousands)
Balance, beginning of year	$	4,784		$	4,448		$	4,784		$	4,448
Recoveries		106			331			204			331
Provision for loan losses		300			1,200			700			1,200
Loans charged off		(240	)		(1,195	)		(555	)		(1,195	)

Balance, end of period	$	4,950		$	4,784		$	5,133		$	4,784

Share-based compensation arrangements include stock options, restricted stock ~~plans,~~awards, performance-based awards, stock appreciation rights and employee stock purchase plans. Statement of Financial Accounting Standards (SFAS) No. 123R, “Share-Based Payment” (SFAS No. 123R) requires all share-based payments to employees to be valued using a fair value method on the date of grant and to be expensed based on that fair value over the applicable vesting period. The Company adopted SFAS No. 123R ~~was adopted by the Company~~ as of January 1, 2006. ~~The~~As of September 30, 2007, the Company ~~has~~had not issued any new options since SFAS No. 123R became effective.

The Company has stock option plans which have ~~395,455~~476,086 shares of common stock reserved for grants to key employees and directors. ~~Currently, 224,637~~Options to purchase 250,056 shares of common stock from these plans are outstanding at ~~March 31,~~September 30, 2007. The common stock reserved for grants and common stock outstanding have been adjusted for the 5 for 4 stock split in the form of a dividend paid on October 1, 2007. The exercise price of each option equals the market price of the Company’s common stock on the date of the grant, and an option’s maximum term is ten years.

Stock option plan activity for the ~~three~~nine months ended ~~March 31,~~September 30, 2007 is summarized below:


	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value		Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Options outstanding, January 1	243,747		$	22.28				304,676		$	17.82
Granted	—			—				—			—
Exercised	(10,110	)		14.11				(30,870	)		11.19
Canceled or expired	(9,000	)		21.37				(23,750	)		20.05

Options outstanding, March 31	224,637			22.69	4.10	$	1,267,460
Options exercisable, March 31	224,637		$	22.69	4.10	$	1,267,460
Options outstanding, September 30								250,056			18.43	3.90	$	834,427
Options exercisable, September 30								250,056		$	18.43	3.90	$	834,427

The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on ~~March 31,~~September 30, 2007. This amount changes based on changes in the market value of the Company’s stock.

The total proceeds of options exercised during the ~~first three~~nine months ended ~~March 31,~~September 30, 2007 was ~~$143~~$345 thousand. The intrinsic value for options exercised during the ~~first three~~nine months ended ~~March 31,~~September 30, 2007 was ~~$140~~$327 thousand.

As of ~~March 31,~~September 30, 2007, there was no unrecognized compensation expense because all outstanding options were vested.

SFAS No. 123R requires the benefits of tax deductions in excess of grant-date fair value to be reported as a financing cash flow. The Company ~~did not have any~~had a $29 thousand tax benefit ~~deductions~~deduction from the exercise of stock options in the first ~~quarter~~nine months of 2007.

The Company provides pension benefits for eligible participants through a non-contributory defined benefits pension plan. The plan was frozen effective September 30, 2006; therefore no additional participants will be added to the plan. The components of net periodic pension cost are as follows:

The Company has not made and, does not expect to make, any contributions to the plan in 2007.

Basic earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period, including the effect of dilutive potential common shares attributable to outstanding stock options.

~~$127 thousand potential~~Potential common shares outstanding attributable to stock options of 146 thousand were not included in the diluted earnings per share calculation because they were ~~antidiluted.~~antidilutive. The number of shares has been adjusted for the 5 for 4 stock split in the form of a stock dividend paid October 1, 2007.

In September 2006, the Financial Accounting Standards Board (FASB) issued ~~Statement of Financial Accounting Standards~~SFAS No. 157, “Fair Value Measurements” (SFAS No. 157). SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. SFAS 157 does not require any new fair value measurements but may change current practice for some entities. This Statement is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those years. The Company does not expect the implementation of SFAS 157 to have a material impact on its consolidated financial statements.

In February 2007, the FASB issued ~~Statement of Financial Accounting Standards~~SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (SFAS 159). This ~~statement~~Statement permits entities to choose to measure many financial instruments and certain other items at fair value. The objective of this Statement is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. The fair value option established by this Statement permits all entities to choose to measure eligible items at fair value at specified election dates. A business entity shall report unrealized gains and losses on items for which the fair value option has been elected in earnings at each subsequent reporting date. The fair value option may be applied instrument by instrument and is irrevocable. SFAS No. 159 is effective as of the beginning of an entity’s first fiscal year that begins after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of SFAS 157, “Fair Value Measurements”. The Company is in the process of evaluating the impact ~~this statement~~SFAS No. 159 may have on its consolidated financial ~~statements but does not intend to adopt early.~~statements.

The following discussion is intended to assist readers in understanding and evaluating the financial condition, changes in financial condition and the results of operations of the Company. The Company consists of the parent company and its wholly-owned subsidiaries, The Old Point National Bank of Phoebus (the Bank) and Old Point Trust & Financial Services, N. A. (Trust), collectively referred to as the Company. This discussion should be read in conjunction with the consolidated financial statements and other financial information contained elsewhere in this report.

In addition to historical information, this report may contain forward-looking statements. For this purpose, any statement that is not a statement of historical fact may be deemed to be a forward-looking statement. These forward-looking statements may include statements regarding profitability, liquidity, allowance for loan losses, interest rate sensitivity, market risk, growth strategy and financial and other goals. Forward-looking statements often use words such as “believes,” “expects,” “plans,” “may,” “will,” “should,” “projects,” “contemplates,” “ anticipates,” “forecasts,” “intends” or other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, and actual results could differ materially from historical results or those anticipated by such statements.

Factors that could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to, changes in: interest rates, general economic conditions, monetary and fiscal policies of the U.S. Government, including policies of the Office of the Comptroller of the Currency, U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, and accounting principles, policies and guidelines. 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. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made. In addition, past results of operations are not necessarily indicative of future results.

The Company is the parent company of the Bank and Trust. The Bank is a locally owned and managed community bank serving the Hampton Roads localities of Hampton, Newport News, Norfolk, Virginia Beach, Chesapeake, Williamsburg/James City County, York County and Isle of Wight County. The Bank currently has 19 branch offices. Trust is a wealth management services provider.

As of ~~March 31,~~September 30, 2007, there have been no significant changes with regard to the critical accounting policies and estimates disclosed in the Company’s annual report on Form 10-K for the year ended December 31, 2006. That disclosure included a discussion of the accounting policy that requires management’s most difficult, subjective or complex judgments: the allowance for loan losses.

Net income for the ~~first~~third quarter of 2007 was ~~$1.9~~$2.0 million as compared with $1.7 million earned in the comparable quarter in 2006, an increase of ~~13.40%~~15.73%. Basic and diluted earnings per share for the ~~first~~third quarter 2007 were ~~$0.48.~~$0.40. Basic and diluted earnings per share for the ~~first~~third quarter of 2006 were ~~$0.42. Annualized return on average assets (ROA)~~$0.34.

Net income for the ~~first quarter of~~nine months ending September 30, 2007 was ~~0.92%~~$5.9 million as compared to $5.2 million, an increase of 13.77%. Basic and ~~0.90%~~diluted earnings per share for the ~~comparable period in 2006. Return on equity (ROE) was 10.12%~~nine months ending September 30, 2007 were $1.19 and $1.18 as compared to $1.04 and $1.03 for the ~~first quarter of 2007 compared with 9.52% for the same period in~~nine months ending September 30, 2006.

The principal source of earnings for the Company is net interest income. Net interest income is the difference between interest and fees generated by earning assets and interest expense paid to fund them. Changes in the volume and mix of interest-earning assets and interest-bearing liabilities, as well as their respective yields and rates, have a significant impact on the level of net interest income. The net interest margin is calculated by dividing tax equivalent net interest income by average earning assets.

Net interest income, on a fully tax equivalent basis, was ~~$6.4~~$6.7 million in the ~~first~~third quarter of 2007, an increase of ~~$227~~$286 thousand from the ~~first~~third quarter of 2006. The net interest margin was ~~3.27%~~3.50% in the ~~first~~third quarter of 2007 ~~as compared to 3.48%~~and 3.37% in ~~2006. Due to~~ the flat yield curve, management anticipated the net interest margin would decline. Therefore, management made a conscious effort to grow the loan portfolio to reduce the negative effect on interest income caused by the flat yield curve. The average loan portfolio grew by $78.5 million between the firstthird quarter of ~~2006 and the first quarter of 2007.~~2006.

Tax equivalent interest income increased ~~$1.9 million,~~$730 thousand, or ~~18.59%~~6.15%, in the ~~first~~third quarter of 2007 compared to the same period of 2006. Average earning assets grew ~~$74.4~~$6.0 million, or ~~10.50%~~0.79%. The average yield on earning assets during the third quarter of 2007 was 33 basis points higher than during the third quarter of 2006.

For the nine months ended September 30, 2007, net interest income on a fully tax equivalent basis increased $861 thousand, or 4.56%, over the comparable period in 2006. Comparing the first nine months of 2007 ~~by 43~~to 2006, average loans increased $53.9 million, or 10.13%, while investment securities decreased $24.4 million, or 12.47%. Average earning assets increased $39.7 million, or 5.42%, for the nine months ended September 30, 2007 as compared to the nine months ended September 30, 2006. The net interest yield decreased 2 basis ~~points. Most of the increase was due~~points from 3.43% in 2006 to ~~increasing yields~~3.41% in ~~the loan portfolio.~~2007.

Interest expense increased ~~$1.7 million,~~$444 thousand, or ~~40.68%~~8.15%, and average interest-bearing liabilities increased ~~12.88%~~$9.1 million, or 1.43%, in the ~~first~~third quarter of 2007 compared to the same period of 2006. The cost of funding those liabilities increased 7123 basis points. For the nine months ended September 30, 2007, interest expense increased $3.1 million, or 28.81%, over the same period in 2006.

The following table shows an analysis of average earning assets, interest-bearing liabilities and rates and yields. Nonaccrual loans are included in loans outstanding.


For the quarter ended March 31,	2007							2006
	Average Balance			Interest Income/ Expense		Yield/ Rate**		Average Balance			Interest Income/ Expense		Yield/ Rate**
	(in thousands)														For the quarter ended September 30,
ASSETS
															2007							2006
															Average Balance			Interest Income/ Expense		Yield/ Rate**		Average Balance			Interest Income/ Expense		Yield/ Rate**
															(in thousands)
Loans	$	584,652		$	10,257	7.02	%	$	506,109		$	8,318	6.57	%	$	586,207		$	10,673	7.28	%	$	558,962		$	9,844	7.04	%
Investment securities:
Taxable		158,176			1,349	3.41	%		164,356			1,375	3.35	%		127,249			1,111	3.49	%		163,953			1,388	3.39	%
Tax-exempt		28,290			495	7.00	%		33,335			588	7.05	%		26,291			463	7.05	%		30,203			530	7.02	%

Total investment securities		186,466			1,844	3.96	%		197,691			1,963	3.97	%		153,540			1,574	4.10	%		194,156			1,918	3.95	%
Federal funds sold		11,759			153	5.20	%		4,692			52	4.43	%		27,125			347	5.12	%		7,778			102	5.25	%

Total earning assets		782,877		$	12,254	6.26	%		708,492		$	10,333	5.83	%		766,872		$	12,594	6.57	%		760,896		$	11,864	6.24	%
Reserve for loan losses		(4,866	)						(4,535	)						(5,167	)						(4,586	)

Cash and due from banks		13,112							14,887
Bank premises and equipment, net		26,612							21,510
Other assets		14,645							13,039
Other nonearning assets																56,913							51,966

Total assets	$	832,380						$	753,393						$	818,618						$	808,276


LIABILITIES AND STOCKHOLDERS’ EQUITY

Time and savings deposits:
Interest-bearing transaction accounts	$	10,629		$	7	0.26	%	$	8,342		$	5	0.24	%	$	10,339		$	7	0.27	%	$	8,863		$	6	0.27	%
Money market deposit accounts		150,626			578	1.53	%		152,154			437	1.15	%		147,987			574	1.55	%		149,007			552	1.48	%
Savings accounts		38,883			48	0.49	%		41,778			51	0.49	%		38,792			49	0.51	%		40,059			51	0.51	%
Time deposits, $100,000 or more		109,415			1,334	4.88	%		81,755			777	3.80	%		113,744			1,427	5.02	%		96,592			1,106	4.58	%
Other time deposits		181,612			1,978	4.36	%		164,014			1,502	3.66	%		189,742			2,172	4.58	%		173,314			1,830	4.22	%

Total time and savings deposits		491,165			3,945	3.21	%		448,043			2,772	2.47	%		500,604			4,229	3.38	%		467,835			3,545	3.03	%
Federal funds purchased, repurchase agreements and other borrowings		51,007			498	3.91	%		50,199			408	3.25	%		50,535			490	3.88	%		49,244			497	4.04	%
Federal Home Loan Bank advances		116,398			1,415	4.86	%		85,179			984	4.62	%		90,000			1,172	5.21	%		115,000			1,405	4.89	%

Total interest-bearing liabilities		658,570		$	5,858	3.56	%		583,421		$	4,164	2.85	%		641,139			5,891	3.68	%		632,079			5,447	3.45	%
Demand deposits		95,167							96,521							96,559							100,291
Other liabilities		2,845							2,461							3,248							2,673

Total liabilities		756,582							682,403
Stockholders’ equity		75,798							70,990							77,672							73,233

Total liabilities and stockholders’ equity	$	832,380						$	753,393						$	818,618						$	808,276

Net interest margin				$	6,396	3.27	%				$	6,169	3.48	%
Net interest income/yield																		$	6,703	3.50	%				$	6,417	3.37	%

The provision for loan losses is a charge against earnings necessary to maintain the allowance for loan losses at a level consistent with management’s evaluation of the portfolio.

The provision for loan losses was ~~$300~~$700 thousand for the first ~~three~~nine months of 2007, and ~~$300~~$900 thousand in the comparable period in 2006. Loans charged off (net of recoveries) in the first ~~three~~nine months of 2007 were ~~$34~~$372 thousand lower than in the first ~~quarter~~nine months of 2006. On an annualized basis, net loan charge-offs were ~~0.09%~~0.06% of total ~~net~~ loans for the first ~~three~~nine months of 2007 compared with 0.13% for the same period in 2006.

On ~~March 31,~~September 30, 2007, nonperforming assets totaled ~~$2.0~~$2.5 million compared with ~~$1.1~~$1.4 million on ~~March 31,~~September 30, 2006. The ~~March~~September 2007 total consisted of $1.3 million in restructured debt, $129 thousand in loans still accruing but past due 90 days or more, $166 thousand in nonaccrual loans, $165 thousand in a former branch site listed for sale and $240 thousand in foreclosed property. The March 2006 total consisted of $636$735 thousand in loans still accruing interest but past due 90 days or more, ~~$291~~$282 thousand in nonaccrual loans, and $165 thousand in a former branch site listed for sale. ~~Loans~~The September 2006 total consisted of $1.1 million in loans still accruing interest but past due 90 days or more, ~~decreased to $130~~$158 thousand in nonaccrual loans and $165 thousand in a former branch site listed for sale. Although nonperforming assets as of ~~March 31,~~September 30, 2007 ~~compared with $636 thousand~~were approximately $1.1 million higher than the same period in 2006, $1.3 million of this amount is due to restructured debt, which is current and paying as ~~of March 31, 2006.~~agreed.

The allowance for loan losses on ~~March 31,~~September 30, 2007 was ~~$5.0~~$5.1 million, compared with $4.6 million on ~~March 31,~~September 30, 2006. As of ~~March 31,~~September 30, 2007 the allowance for loan losses represented a multiple of ~~2.44~~2.04 times nonperforming assets and ~~3.05~~2.18 times nonperforming loans. Nonperforming loans includes nonaccrual loans, loans still accruing interest but past due 90 days or more and restructured loans. The allowance for loan losses was ~~0.85%~~0.87% and ~~0.88%~~0.81% of total loans on ~~March 31,~~September 30, 2007 and 2006, respectively.

For the ~~first~~third quarter of 2007, noninterest income increased ~~$291~~$322 thousand, or ~~10.45%~~11.88%, over the same period in 2006. ~~$120~~The majority of the increase in noninterest income is attributed to fiduciary income and other service charges, commissions and fees. $114 thousand of the growth in noninterest income is attributed to income from fiduciary ~~activities. A~~activities as a result of a fee increase, growth in new business and market value growth. Income from other service charges, commissions and fees was $147 thousand higher in the third quarter 2007 than in the same period of 2006. The majority of the $147 thousand in growth ~~are~~in other service charges, commissions and fees is related to debit card income.

For the ~~reasons for~~nine months ending September 30, 2007, noninterest income increased $722 thousand or 8.47% over the ~~additional~~same period in 2006. The majority of the increase in income is from fiduciary activities, service charges on deposit accounts and other operating income. Fee increases and growth in new business have positively affected fiduciary income. ~~Also, brokered~~$142 thousand of the increase in service charges on deposit accounts is related to lower charge offs of nonsufficient funds charges assessed on demand deposit accounts. Other operating income increased due to increases in mortgage income for the first quarter 2007 was $46 thousand higher than 2006. Finally, noninterest income was positively affected by a Federal Home Loan Bank (FHLB) advance transaction. The unwinding of a $5.0 million advance in the first quarter of 2007 contributed $80 thousand to income in the first quarter of 2007.brokerage income.

For the ~~first~~third quarter of 2007, noninterest expenses increased only ~~$185~~$296 thousand, or ~~3.02%~~4.70%, over the ~~first~~third quarter of 2006. Salaries and employee benefits increased by ~~$191~~$152 thousand, or ~~5.14%~~3.97%, as a result of normal yearly salary increases and an increase of 106 in ~~the Company’s~~ full time equivalent ~~(FTE)~~ positions.

Occupancy expenses increased $7only $67 thousand, or ~~0.79%~~7.76%. The Company has not opened any new facilities since February 2006 and has been able to control expenses in this area. The Company plans ~~on opening~~to open an additional branch in the Virginia Beach area in the fourth quarter of this year and expects occupancy costs to rise ~~due to~~as a result.

For the ~~opening.~~nine months ending September 30, 2007, noninterest expense was $709 thousand or 3.78% higher than the same period in 2006.

At ~~March 31,~~September 30, 2007, the Company had total assets of ~~$843.3~~$827.6 million, a decrease of ~~0.50%~~2.35% from $847.5 million at December 31, 2006. Net loans as of ~~March 31,~~September 30, 2007 were ~~$577.8~~$581.9 million, ~~a decrease~~an increase of ~~0.17%~~0.53% from $578.8 million at December 31, 2006.

Average assets for the first ~~quarter~~nine months of 2007 were ~~$832.4~~$824.1 million compared to ~~$753.4~~$779.6 million for the first ~~quarter~~nine months of 2006. The growth in assets in 2007 was due to the growth in average loans, which increased ~~15.52%~~10.13% as compared to the same period in 2006.

Total investment securities at ~~March 31,~~September 30, 2007 were ~~$179.2~~$146.8 million, a decrease of ~~4.83%~~22.04% from $188.2 million on December 31, 2006. The Company’s goal is to provide maximum return on the investment portfolio within the framework of its asset/liability objectives. The objectives include managing interest sensitivity, liquidity and pledging requirements.

During 2007, one of the Company’s strategic goals is to restructure the balance sheet in order to improve the net interest margin. At the Bank, $93.2 million in government agency securities will be maturing in 2007. As of December 31, 2006, these ~~agencies~~securities had an average annual yield of 3.16%. In addition, the Bank had $125.0 million in ~~FHLB~~Federal Home Loan Bank of Atlanta (FHLB) advances outstanding as of December 31, 2006 ~~that had~~with an average annual yield of 4.81%.

During ~~the year,~~2007, the Company ~~intends to use~~is using funds from the low yielding maturing securities to pay down its high cost FHLB advances or to invest in higher yielding loans or securities. During the first ~~quarter~~nine months of 2007 the Company reduced its FHLB advances by ~~$10.0~~$35.0 million.

At ~~March 31,~~September 30, 2007, total deposits increased to ~~$596.6~~$600.7 million, up ~~1.39%~~2.09% from $588.4 million onat December 31, 2006. The majority of this growth occurred in the Company’s ~~noninterest-bearing deposits and savings and interest-bearing demand deposits categories, which are of lower cost to the Company than its~~ time deposit category. The Company initiated a low cost deposit incentive program with its branch and commercial lending staff in 2006. In addition, extensive sales training was conducted for branch personnel during the first quarter of 2007.

Federal funds purchased, repurchase agreements and other borrowings decreased to $52.1 million, a decrease of 8.61% from $57.1 million on December 31, 2006. FHLB advances decreased to $115.0 million, a decrease of 8.00% from $125.0 million on December 31, 2006.

Under ~~the~~applicable banking regulations, Total Capital is ~~composed~~comprised of core capital (Tier 1) and supplemental capital (Tier 2). Tier 1 capital consists of common stockholders’ equity and retained earnings less goodwill. Tier 2 capital consists of certain qualifying debt and a qualifying portion of the allowance for loan losses. The following is a summary of the Company’s capital ratios at ~~March 31,~~September 30, 2007. As shown below, these ratios were all well above the regulatory minimum levels.


	2007 Regulatory Minimums		March 31,2007		2007 Regulatory Minimums		September 30, 2007
Tier 1	4.00	%	12.61	%	4.00	%	12.06	%
Total Capital	8.00	%	13.41	%	8.00	%	12.85	%
Tier 1 Leverage	3.00	%	9.36	%	3.00	%	9.66	%

Quarter-end book value per share was ~~$19.08~~$19.89 in 2007 and ~~$17.80~~$18.42 in 2006. Book value has not been adjusted to reflect the 5 for 4 stock split in the form of a dividend payable October 1, 2007. Cash dividends were ~~$718 thousand~~$2.2 million or ~~$0.18~~$0.56 per share infor the ~~first quarter of~~nine months ended September 30, 2007, and ~~$0.17~~$2.1 million or $0.52 per share infor the ~~first quarter of~~nine months ended September 30, 2006. The common stock of the Company has not been extensively traded.

Liquidity is the ability of the Company to meet present and future financial obligations through either the sale or maturity of existing assets or the acquisition of additional funds through liability management. Liquid assets include cash, interest-bearing deposits with banks, federal funds sold, investments in securities and loans maturing within one year. ~~For the remainder of 2007, the Bank has $84.2 million in maturing government agency securities.~~

In addition, secondary sources are available through the use of borrowed funds if the need should arise. The Company’s sources of funds include a large stable deposit base and secured advances from FHLB. As of the end of the ~~first~~third quarter of 2007, the Company had ~~$136.0~~$156.7 million in FHLB borrowing availability. The Company has ~~available~~ short-term unsecured borrowed funds available in the form of federal funds with correspondent banks. As of the end of the ~~first~~third quarter of 2007, the Company had $40.0 million available in federal funds to handle any short-term borrowing needs.

Management is not aware of any market or institutional trends, events or uncertainties that are expected to have a material effect on the liquidity, capital resources or operations of the Company. Nor is management aware of any current recommendations by regulatory authorities that would have a material effect on liquidity, capital resources or operations. The Company’s internal sources of such liquidity are deposits, loan and investment repayments and securities available for sale. The Company’s primary external source of liquidity is advances from the ~~FHLB of Atlanta.~~FHLB.

As a result of the Company’s management of liquid assets, availability of borrowed funds and the ability to generate liquidity through liability funding, management believes that the Company maintains overall liquidity sufficient to satisfy its depositors’ requirements and to meet its customers’ future borrowing needs.

In the normal course of business there are various outstanding contractual obligations of the Company that will require future cash outflows. In addition, there are commitments and contingent liabilities, such as commitments to extend credit, ~~that~~which may or may not require cash outflows.

The Company purchased property for two future branch sites in 2006. These properties were purchased outright, not financed. The Company intends to open branches on these sites within the next two years. Funds will be used to renovate or construct branches at these locations.

As of ~~March 31,~~September 30, 2007, there have been no material changes outside the ordinary course of business in the Company’s contractual obligations disclosed in the Company’s annual report on Form 10-K for the year ended December 31, 2006.

As of ~~March 31,~~September 30, 2007, there were no material changes in the Company’s off-balance sheet arrangements disclosed in the Company’s annual report on Form 10-K for the year ended December 31, 2006.

The Company purchased property for two future branch sites in 2006. These properties were purchased with cash, not financed. The Company intends to open one of these future branch sites by the end of 2007 and the other site by the end of 2008. Funds will be used to renovate or construct branches at these locations.

In August 2007, the Company purchased one of its leased branches in Hampton. The purchase price was $740 thousand, and the Company purchased the property with cash. The Company plans to renovate this branch in 2008.

An important element of earnings performance and the maintenance of sufficient liquidity is proper management of the interest sensitivity gap and liquidity gap. The interest sensitivity gap is the difference between interest sensitive assets and interest sensitive liabilities in a specific time interval. This gap can be managed by repricing assets or liabilities, which are variable rate instruments, by replacing an asset or liability at maturity or by adjusting the interest rate during the life of the asset or liability. Matching the amounts of assets and liabilities maturing in the same time interval helps to hedge interest rate risk and to minimize the impact of rising or falling interest rates on net interest income.

The Company determines the overall magnitude of interest sensitivity risk and then formulates policies governing asset generating and pricing, funding sources and pricing, and off-balance sheet commitments. These decisions are based on management’s expectations regarding future interest rate movements, the state of the national and regional economy, and other financial and business risk factors. The Company uses computer simulations to measure the effect of various interest rate scenarios on net interest income. This modeling reflects interest rate changes and the related impact on net interest income and net income over specified time horizons.

Based on scheduled maturities only, the Company was liability sensitive as of ~~March 31,~~September 30, 2007. It should be noted, however, that non-maturing deposit liabilities totaling ~~$207.0~~$190.0 million, which consist of interest checking, money market, and savings accounts, are less interest sensitive than other market driven deposits. In a rising rate environment, changes in these deposit rates have historically lagged

behind the changes in earning asset rates, thus mitigating the impact from the liability sensitivity position. The asset/liability model allows the Company to reflect the fact that non-maturing deposits are less rate sensitive than other deposits by using a decay rate. The decay rate is a type of artificial maturity that simulates maturities for non-maturing deposits over the number of months that more closely reflects historic data. Using the decay rate, the model reveals that the Company is ~~slightly~~ asset sensitive.

When the Company is asset sensitive, net interest income should improve if interest rates rise since assets will reprice faster than liabilities. Conversely, if interest rates fall, net interest income should decline, depending on the optionality (prepayment speeds) of the assets. When the Company is liability sensitive, net interest income should fall if rates rise and rise if rates fall.

The most likely scenario represents the rate environment as management forecasts it to occur. Management uses a “static” test to measure the effects of changes in interest rates on net interest income. This test assumes that management takes no steps to adjust the balance sheet to respond to the shock by repricing assets/liabilities, as discussed in the first paragraph of this section.

Under the rate environment forecasted by management, rate shocks in 100 basis point increments are applied to see the impact on the Company’s earnings at ~~March 31,~~September 30, 2007. The rate shock model reveals that a 100 basis point decrease in rates would cause an approximately ~~2.20%~~2.62% decrease in net income and a 200 basis point decrease in rates would cause an approximately ~~5.18%~~5.92% decrease in net income. The rate shock model reveals that a 100 basis point rise in rates would cause an approximately ~~1.69%~~2.88% increase in net income and that a 200 basis point rise in rates would cause an approximately ~~2.79%~~4.88% increase in net income.

The Company maintains a system of disclosure controls and procedures that is designed to ensure that material information is accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions to be made regarding required disclosure. As required, management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of the end of the period covered by this report. Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were operating effectively to ensure that information required to be disclosed by the Company in reports that it files or submits under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC.

The Company’s management is also responsible for establishing and maintaining adequate internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. No changes in the Company’s internal control over financial reporting occurred during the fiscal quarter ended ~~March 31,~~September 30, 2007 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

The Company’s management, including the Chief Executive Officer and Chief Financial Officer, does not expect that the Company’s disclosure controls and procedures or the Company’s internal controls will prevent all error and fraud. A control system, no matter how well conceived and operated, provides reasonable, not absolute, assurance that the objectives of the control system are met. The design of a control system reflects resource constraints and the benefits of controls must be considered relative to their costs. Because there are inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been or will be detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events. There can be no assurance that any design will

succeed in achieving its stated goals under all future conditions; over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with the policies or procedures. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

There are no pending or threatened legal proceedings to which the Company, or any of itits subsidiaries, is a party or to which the property of either the Company or its subsidiaries is subject that, in the opinion of management, may materially impact the financial condition of the Company.

As of ~~March 31,~~September 30, 2007, there have been no material changes in the risk factors faced by the Company from those disclosed in the Company’s annual report on Form 10-K for the year ended December 31, 2006.

The following table, which has not been adjusted for the 5 for 4 stock split in the form of a stock dividend payable October 1, 2007, presents the ~~monthly~~Company’s share repurchases during the period ended ~~March 31,~~September 30, 2007:

There were no matters submitted to a vote of security holders during the quarter ended ~~March 31,~~September 30, 2007.

The Company has made no changes to the procedures by which security holders may recommend nominees to its board of directors.


Exhibit No.		Description
3.1		Articles of Incorporation of Old Point Financial Corporation, as amended April 25, 1995 (incorporated by reference to Exhibit 3 to Form 10-K filed March 26, 1999)

3.2		Bylaws of Old Point Financial Corporation, as amended ~~August~~and restated September 11, ~~1992~~2007 (incorporated by reference to Exhibit 33.2 to Form ~~10-K~~8-K/A filed ~~March 26, 1999)~~September 20, 2007)

10.6		Base Salaries of Named Executive Officers of the Registrant

10.8		Memorandum of Understanding, dated September 10, 2007, between The Old Point National Bank of Phoebus and Tidewater Mortgage Services, Inc.

31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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 thereunto duly authorized.


PART I—FINANCIAL INFORMATION

		Page
Item 1.		Financial Statements.	1

	Consolidated Balance Sheets ~~March 31,~~
	September 30, 2007 (unaudited) and December 31, 2006	1

	Consolidated Statements of Income
	Three months ended ~~March 31,~~September 30, 2007 and 2006 (unaudited)
	Nine months ended September 30, 2007 and 2006 (unaudited)	2

	Consolidated Statements of Changes in Stockholders’ Equity ~~Three~~
	Nine months ended ~~March 31,~~September 30, 2007 and 2006 (unaudited)	3

	Consolidated Statements of Cash Flows ~~Three~~
	Nine months ended ~~March 31,~~September 30, 2007 and 2006 (unaudited)	4

	Notes to Consolidated Financial Statements (unaudited)	5

Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations.	1011

Item 3.		Quantitative and Qualitative Disclosures About Market Risk.	15

~~Item 4.~~	~~Controls and Procedures.~~	16

	~~PART II - OTHER INFORMATION~~

Item 1.		~~Legal Proceedings.~~4. Controls and Procedures.	17

PART II—OTHER INFORMATION

Item ~~1A.~~1. Legal Proceedings.		~~Risk Factors.~~	1718

Item 2.1A. Risk Factors.		18

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.		1718

Item 3.		Defaults Upon Senior Securities.	1718

Item 4.		Submission of Matters to a Vote of Security Holders.	1718

Item 5. Other Information.		~~Other Information.~~	1719

Item 6. Exhibits.		~~Exhibits.~~	1819


Quarter ended March 31,	2007			2006
	Pension Benefits
Service cost	$	—		$	126,049
Interest cost		71,947			83,788
Expected return on plan assets		(102,901	)		(96,067	)
Amortization of prior service cost		—			320
Amortization of net loss		8,605			44,789

Net periodic pension plan cost (benefit)	$	(22,349	)	$	158,879


Three months ended September 30,	2007			2006
	Pension Plan Cost (Benefit)
Service cost	$	—		$	126,049
Interest cost		71,948			83,788
Expected return on plan assets		(102,902	)		(96,067	)
Amortization of prior service cost		—			320
Amortization of net loss		8,606			44,789

Net periodic pension plan cost (benefit)	$	(22,348	)	$	158,879


Nine months ended September 30,	2007			2006
	Pension Plan Cost (Benefit)
Service cost	$	—		$	378,147
Interest cost		215,843			251,364
Expected return on plan assets		(308,705	)		(288,201	)
Amortization of prior service cost		—			960
Amortization of net loss		25,817			134,367

Net periodic pension plan cost (benefit)	$	(67,045	)	$	476,637


	For the nine months ended September 30,
	2007							2006
	Average Balance			Interest Income/ Expense		Yield/ Rate**		Average Balance			Interest Income/ Expense		Yield/ Rate**
	(in thousands)
Loans	$	585,707		$	31,419	7.15	%	$	531,850		$	27,187	6.82	%
Investment securities:
Taxable		143,699			3,707	3.44	%		163,768			4,133	3.36	%
Tax-exempt		27,412			1,445	7.03	%		31,710			1,674	7.04	%

Total investment securities		171,111			5,152	4.01	%		195,478			5,807	3.96	%
Federal funds sold		16,635			644	5.16	%		6,394			235	4.90	%

Total earning assets		773,453		$	37,215	6.42	%		733,722		$	33,229	6.04	%
Reserve for loan losses		(5,039	)						(4,541	)
Other nonearning assets		55,668							50,379

Total assets	$	824,082						$	779,560

Time and savings deposits:
Interest-bearing transaction accounts	$	10,855		$	21	0.26	%	$	8,712		$	17	0.26	%
Money market deposit accounts		151,890			1,754	1.54	%		151,538			1,502	1.32	%
Savings accounts		39,215			148	0.50	%		41,088			154	0.50	%
Time deposits, $100,000 or more		108,132			4,041	4.98	%		88,055			2,782	4.21	%
Other time deposits		186,060			6,213	4.45	%		168,110			4,960	3.93	%

Total time and savings deposits		496,152			12,177	3.27	%		457,503			9,415	2.74	%
Federal funds purchased, repurchase agreements and other borrowings		50,237			1,468	3.90	%		50,116			1,369	3.64	%
Federal Home Loan Bank advances		102,040			3,807	4.97	%		99,170			3,543	4.76	%

Total interest-bearing liabilities		648,429			17,452	3.59	%		606,789			14,327	3.15	%
Demand deposits		96,255							98,528
Other liabilities		2,536							2,319
Stockholders’ equity		76,862							71,924

Total liabilities and stockholders’ equity	$	824,082						$	779,560

Net interest income/yield				$	19,763	3.41	%				$	18,902	3.43	%


Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of the Repurchase Program (1)	Maximum Number of Shares that May Yet Be Purchased Under the Repurchase Program (1)
1/1/2007 - 1/31/2007	5,534	$	28.47	5,534	194,074
2/1/2007 - 2/28/2007	—		—	—	194,074
3/1/2007 - 3/31/2007	—		—	—	194,074
Total	5,534			5,534


		OLD POINT FINANCIAL CORPORATION

~~May 10,~~November 9, 2007		/s/ Robert F. Shuford
		Robert F. Shuford
		Chairman, President & Chief Executive Officer
		(Principal Executive Officer)

~~May 10,~~November 9, 2007		/s/ Laurie D. Grabow
		Laurie D. Grabow
		Chief Financial Officer & Senior Vice President/Finance
		(Principal Financial & Accounting Officer)