UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For quarterly period Ended March 31, 2003
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
ACT
For the transition period from to
Commission File No. 0-12896 (1934 Act)

OLD POINT FINANCIAL CORPORATION
-------------------------------
(Exact name of registrant as specified in its charter)

Virginia 54-1265373
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification No.)

1 West Mellen Street, Hampton, Va. 23663
------------------------------------------
(Address of Principal Executive Offices) (Zip Code)

Registrant's telephone number, including area code (757) 722-7451

Not Applicable

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

Check whether the registrant (1) has filed all reports
required to be filed by Section 12, 13 or 15(d) of the Exchange
Act 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. Yes X No

Indicate by check mark whether the registrant is an accelerated
filer (as defined by Rule 12b-2 of the Exchange Act) Yes X No __

State the number of shares outstanding of each of the issuer's
classes of common stock as of April 30, 2002.

Class Outstanding at March 31, 2003
----- -----------------------------
Common Stock, $5.00 par value 3,944,070 shares
<page>

OLD POINT FINANCIAL CORPORATION
FORM 10-Q

INDEX
-----

PART I - FINANCIAL INFORMATION
Page
----
Item 1. Financial Statements...................................... 1

Consolidated Balance Sheets
March 31, 2003 and December 31, 2002........ 1

Consolidated Statement of Earnings
Three months ended March 31, 2003 and 2002......... 2

Consolidated Statement of Cash Flows
Three months ended March 31, 2003 and 2002........ 3

Consolidated Statements of Changes in Stockholders' Equity
Three months ended March 31, 2003 and 2002......... 4

Notes to Consolidated Financial Statements................... 5

Parent Only Balance Sheets
March 31, 2003 and December 31, 2002........ 7

Parent Only Statement of Earnings
Three months ended March 31, 2003 and 2002.. 7

Parent Only Statement of Cash Flows
Three months ended March 31, 2003 and 2002.. 8

Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations..................... 9

Analysis of Changes in Net Interest Income.............. 10

Item 3. Quantitative and Qualitative Disclosures about Market
Risk.................................................... 14

Item 4. Disclosure Controls and Procedures........................ 15

PART II - OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K.......................... 16

(i)

<page>
<table>
<caption>
- ----------------------------------------------------------------------------------------
Unaudited March 31, December 31,
Consolidated Balance Sheets 2003 2002
- ----------------------------------------------------------------------------------------
<s> <c> <c>
Assets

Cash and due from banks................................... $ 15,273,832 $ 14,180,253
Interest bearing balances due from banks.................. 250,209 256,597
------------ ------------
Total cash due from banks.............................. $ 15,524,041 $ 14,436,850

Investments:
Securities available for sale, at market................ 136,474,622 128,487,826
Securities to be held to maturity....................... 21,815,439 27,515,549
Trading account securities................................ - -
Federal funds sold........................................ 12,260,526 8,709,544
Loans, total ............................................. 385,689,181 377,961,364
Less reserve for loan losses.......................... 4,671,069 4,564,931
----------- -----------
Net loans......................................... 381,018,112 373,396,433
Bank premises and equipment............................... 13,214,105 13,280,017
Other real estate owned................................... 1,409,184 830,091
Other assets.............................................. 10,135,698 9,966,279
------------ ------------
Total assets......................................... $591,851,727 $576,622,589
============ ============

Liabilities

Noninterest-bearing deposits.............................. $ 98,376,640 $ 90,620,836
Savings deposits.......................................... 159,361,954 159,077,310
Time deposits............................................. 208,436,251 204,353,854
------------ ------------
Total deposits......................................... 466,174,845 454,052,000
Federal funds purchased and securities sold under
agreement to repurchase............................... 22,119,474 21,283,237
Interest-bearing demand notes issued to the United States
Treasury and other liabilities for borrowed money...... 725,099 6,000,000
Federal Home Loan Bank.................................... 40,000,000 35,000,000
Other liabilities......................................... 2,975,776 2,171,878
------------ ------------
Total liabilities...................................... 531,995,194 518,507,115

Stockholders' Equity

Common stock, $5.00 par value............................. $ 19,720,350 $ 19,683,600
2003 2002

Shares authorized.... 10,000,000 10,000,000
Shares outstanding... 3,944,070 3,936,720
Surplus................................................... 11,330,816 11,165,496
Undivided profits......................................... 26,978,752 25,597,568
Accumulated other comprehensive income (loss)............. 1,826,615 1,668,810
------------ ------------
Total stockholders' equity............................ 59,856,533 58,115,474
------------ ------------
Total liabilities and stockholders' equity............ $591,851,727 $576,622,589
============ ============
</table>

1
<page>
<table>
<caption>
- ----------------------------------------------------------------------------------------
Three Months Ended
Consolidated Statements of Earnings March 31
2003 2002
- ----------------------------------------------------------------------------------------
<s> <c> <c>
Interest Income

Interest and fees on loans................................ $ 6,686,479 $ 6,655,916
Interest on federal funds sold............................ 60,718 42,347
Interest on securities:
Interest on United States Treasury securities (taxable)... 23,898 23,109
Interest on obligations of other
United States Government agencies (taxable)............. 1,009,867 1,054,950
Interest on obligations of states and
political subdivisions (tax exempt)..................... 567,331 595,590
Interest on obligations of states and
political subdivisions (taxable)........................ 18,791 19,349
Interest on trading account securities.................... - -
Dividends and interest on all other securities............ 27,402 31,610
------------ ------------
Total interest on securities........................ 1,647,289 1,724,608
Trading account securities................................ - -
------------ ------------
Total interest income................................. 8,394,486 8,422,871

Interest Expense

Interest on savings deposits.............................. 307,703 402,422
Interest on time deposits................................. 1,750,924 2,248,636
Interest on federal funds purchased and securities
sold under agreement to repurchase...................... 63,157 103,213
Interest on Federal Home Loan Bank advances............... 493,118 379,375 379,375
Interest on demand notes (note balances) issued to the
United States Treasury and on other borrowed money...... 5,438 10,306
------------ ------------
Total interest expense................................ 2,620,340 3,143,952

Net interest income....................................... 5,774,146 5,278,919
Provision for loan losses................................. 300,000 300,000
------------ ------------

Net interest income after provision for loan losses....... 5,474,146 4,978,919

Other Income

Income from fiduciary activities.......................... 551,536 528,944
Service charges on deposit accounts....................... 713,915 697,620
Other service charges, commissions and fees............... 310,442 277,006
Other operating income.................................... 219,968 132,913
Security gains (losses)................................... 5,581 5,215
Trading account income.................................... - -
------------ ------------

Total other income.................................... 1,801,442 1,641,698

Other Expenses

Salaries and employee benefits............................ 2,921,688 2,613,831
Occupancy expense of Bank premises........................ 305,602 299,096
Furniture and equipment expense........................... 408,880 406,274
Other operating expenses.................................. 1,030,390 1,071,612
------------ ------------

Total other expenses.................................. 4,666,560 4,390,813
------------ ------------

Income before taxes....................................... 2,609,028 2,229,804
Applicable income taxes .................................. 656,033 572,244
------------ ------------

Net income................................................ $ 1,952,995 $ 1,657,560
============ ============

Per Share

Based on weighted average number of
common shares outstanding............................... 3,941,222 3,903,020
Basic Earnings per Share $ 0.50 $ 0.42
Diluted Earnings per Share $ 0.48 $ 0.42
</table>

2
<page>
<table>
<caption>
- ----------------------------------------------------------------------------------------
OLD POINT FINANCIAL CORPORATION Three Months Ended
Consolidated Statements of Cash Flows March 31,
(Unaudited) 2003 2002
- ----------------------------------------------------------------------------------------
<s> <c> <c>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income................................................ $ 1,952,995 $ 1,657,560
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization........................... 331,106 351,103
Provision for loan losses............................... 300,000 300,000
(Gains) loss on sale of investment securities, net...... (5,581) (5,215)
Net amortization & accretion of securities ............. 12,919 20,460
Net (increase) decrease in trading account.............. - -
Loss on disposal of equipment........................... 215 90,669
(Increase) in other real estate owned................... (579,093) -
(Increase) decrease in other assets
(net of tax effect of FASB 115 adjustment)............ (250,712) (4,721,699)
Increase (decrease) in other liabilities................ 803,897 916,462
------------ ------------
Net cash provided by operating activities............. 2,565,746 (1,390,660)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of securities ................................ (39,104,782) (2,584,766)
Proceeds from maturities & calls of securities ......... 36,400,000 11,098,900
Proceeds from sales of available-for-sale securities.... 649,857 558,189
Proceeds from sales of held-to-maturity securities...... - -
Loans made to customers................................. (58,277,795) (56,473,578)
Principal payments received on loans.................... 50,356,116 52,782,327
Proceeds from sales of other real estate owned.......... - 158,229
Purchases of premises and equipment..................... (265,409) (50,284)
(Increase) decrease in federal funds sold............... (3,550,982) (14,005,289)
------------ ------------
Net cash provided by (used in) investing activities... (13,792,995) (8,516,272)

CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in non-interest bearing deposits.... 7,755,804 (375,284) 4,216,293
Increase (decrease) in savings deposits................. 284,644 5,643,489
Proceeds from the sale of certificates of deposit....... 23,573,141 14,243,620
Payments for maturing certificates of deposit........... (19,490,744) (12,658,153)
Increase (decrease) in federal funds purchased &
repurchase agreements.................................. 836,237 (5,522,560)
Increase (decrease) in Federal Home Loan Bank advances.. 5,000,000 -
Increase (decrease) in other borrowed money............. (5,274,901) 5,630,925
Proceeds from issuance of common stock.................. 103,296 54,650
Dividends paid.......................................... (473,037) (416,412)
------------ ------------
Net cash provided by financing activities............. 12,314,440 6,600,275

Net increase (decrease) in cash and due from banks.... 1,087,191 (3,306,657)
Cash and due from banks at beginning of period........ 14,436,850 14,785,865
------------ ------------
Cash and due from banks at end of period.............. $ 15,524,041 $ 11,479,208
============ ============

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for:
Interest.............................................. $ 2,656,643 $ 3,198,292
Income taxes.......................................... - -

SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS
Unrealized gain(loss) on investment securities, net
of tax................................................ 157,805 (61,908)

Additional minimum liability related to pension......... - -

Transfer of property from Premises & Equipment to Other
Real Estate Owned..................................... - 515,000

</table>
See accompanying notes
3
<page>
<table>
<caption>

- -------------------------------------------------------------------------------------------------------------------------------
OLD POINT FINANCIAL CORPORATION
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Unaudited Accumulated
Other Total
Common Stock Par Capital Retained Comprehensive Stockholder's
Shares Value Surplus Earnings Income(Loss) Equity
- -------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c> <c> <c>
FOR THREE MONTHS ENDED MARCH 31, 2003

Balance at beginning of period............ 3,936,720 $19,683,600 $11,165,496 $25,597,568 $ 1,668,810 $58,115,474
Comprehensive Income
Net income.............................. - - - 1,952,995 - 1,952,995
Increase (decrease) in unrealized
gain on investment securities 157,805 157,805
Minimum pension liabilty adjustment...... - - - - - -
--------- ----------- ----------- ----------- ----------- -----------
Total Comprehensive Income 1,952,995 157,805 2,110,800
Sale of common stock...................... 7,350 36,750 165,320 (98,774) - 103,296
Cash dividends............... ............ - - - (473,037) - (473,037)
--------- ----------- ----------- ----------- ----------- -----------

Balance at end of period.................. 3,944,070 $19,720,350 $11,330,816 $26,978,752 $ 1,826,615 $59,856,533

FOR THREE MONTHS ENDED MARCH 31, 2002

Balance at beginning of period............ 2,599,577 $12,997,885 $10,455,061 $27,340,908 $ 118,217 $50,912,071
Comprehensive Income
Net income.............................. - - - 1,657,560 - 1,657,560
Increase (decrease) in unrealized
gain on investment securities - - - - (61,908) (61,908)
Minimum pension liability adjustment.... - - - - - -
--------- ----------- ----------- ----------- ----------- -----------
Total Comprehensive Income 1,657,560 (61,908) 1,595,652
Sale of common stock...................... 3,000 15,000 68,378 (28,728) - 54,650
Cash dividends............... ............ - - - (416,412) - (416,412)
--------- ----------- ----------- ----------- ----------- -----------

Balance at end of period.................. 2,602,577 $13,012,885 $10,523,439 $28,553,328 $ 56,309 $52,145,961
</table>

See accompanying notes

4
<page>
OLD POINT FINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. The accounting and reporting policies of the Registrant
conform to generally accepted accounting principles and to
the general practices within the banking industry. The
interim financial statements have not been audited;
however, in the opinion of management, all adjustments
necessary for a fair presentation of the consolidated
financial statements have been included. These adjustments
include estimated provisions for bonus, profit sharing and
pension plans that are settled at year-end. These
financial statements should be read in conjunction with the
financial statements included in the Registrant's 2002
Annual Report to Shareholders and Form 10-K.

2. Basic earnings per common share outstanding are computed by
dividing income by the weighted average number of
outstanding common shares for each period presented.
Diluted earnings per share are computed using the treasury
stock method.

3. Certain amounts in the financial statements have been
reclassified to conform with classifications adopted in the
current year.

4. At March 31, 2003, the Company had two stock option plans. The
Company has elected to continue to apply the provisions of APB
No. 25 and related interpretations in accounting for stock options
and to continue to provide the pro forma disclosure requirements
of SFAS No. 123, as amended by SFAS No. 148, "Accounting for
Stock-Based Compensation - Transition and Disclosure", in the table
below. Under APB No. 25, compensation cost for stock options is
measured as the excess, if any, of the fair market value of the
Company's common stock at the date of grant over the amount the
employee or director must pay to acquire the stock. Because the
Company's stock option plans provide for the issuance of stock
options at a price of no less than the fair market value at the date
of the grant, no compensation cost is required to be recognized for
the Company's stock option plans.

Had compensation costs for the stock option plans been determined
based upon the fair value at the date of grant consistent with
SFAS No. 123, net income and earnings per share would have been
reduced to the pro forma amounts indicated in the following table
on page 6.

5
(page)

Old Point Financial Corporation
Pro forma disclosure SFAS No. 123 as amended by SFAS No. 148

- ---------------------------------------------------------------------
Three Months Ended
March 31,

2003 2002
---------- ----------
Net income:
As reported $1,952,995 $1,657,560

Fair value-based expense, net of
tax (157,000) (68,000)
---------- ----------
Pro forma $1,795,995 $1,589,560
========== ==========

Basic earnings per share:
As reported $ 0.50 $ 0.42

Pro forma $ 0.46 $ 0.41

Diluted earnings per share:
As reported $ 0.48 $ 0.42

Pro forma $ 0.44 $ 0.41

- ---------------------------------------------------------------------
6
<page>
<table>
<caption>
- ---------------------------------------------------------------------------------
OLD POINT FINANCIAL CORPORATION
Parent only Balance Sheets March 31, December 31,
(Unaudited) 2003 2002
- ---------------------------------------------------------------------------------
<s> <c> <c>
Assets
Cash in bank........................................ $ 261,791 $ 247,784
Investment Securities............................... 2,223,850 2,215,000
Total Loans......................................... - -
Investment in Subsidiaries.......................... 57,264,927 55,637,412
Other assets........................................ 105,965 15,278
----------- -----------

Total Assets........................................ $59,856,533 $58,115,474
=========== ===========

Liabilities and Stockholders' Equity
Total Liabilities................................... $ - $ -
Stockholders' Equity................................ 59,856,533 58,115,474
----------- -----------

Total Liabilities & Stockholders' Equity............ $59,856,533 $58,115,474
=========== ===========
</table>

- --------------------------------------------------------------------------------
OLD POINT FINANCIAL CORPORATION Three Months Ended:
Parent only Income Statements March 31,
(Unaudited) 2003 2002
- --------------------------------------------------------------------------------
<s> <c> <c>
Income
Cash dividends from Subsidiaries.................... $ 500,000 $ 450,000
Interest and fees on loans.......................... - -
Interest income from investment securities.......... 26,608 22,688
Gains (losses) from sale of investment securities... - -
Other income........................................ 36,000 36,000
----------- -----------
Total Income........................................ 562,608 508,688

Expenses
Salaries and employee benefits...................... 75,042 68,975
Other expenses...................................... 30,353 23,712
----------- -----------
Total Expenses...................................... 105,395 92,687
----------- -----------
Income before taxes & undistributed
net income of subsidiaries...................... 457,213 416,001

Income tax.......................................... (20,230) (17,756)
----------- -----------
Net income before undistributed
net income of subsidiaries........................ 477,443 433,757
Undistributed net income of subsidiaries............ 1,475,552 1,223,803
----------- -----------

Net Income.......................................... $ 1,952,995 $ 1,657,560
=========== ===========

</table>

- ---------------------------------------------------------------------------------
OLD POINT FINANCIAL CORPORATION Three Months Ended:
Parent only Statements of Cash Flows March 31,
(Unaudited) 2003 2002
- ---------------------------------------------------------------------------------
<s> <c> <c>
Cash Flows from Operating Activities:
Net Income.......................................... $ 1,952,995 $ 1,657,560
Adjustments to reconcile net income to
net cash provided by operating activities:
Equity in undistributed income of subsidiaries.. (1,475,552) (1,223,803)
Depreciation...................................... - -
Gains(losses) on sale of securities [net]....... - -
(Increase) Decrease in other assets............. (93,695) (77,837)
Increase (decrease) in other liabilities........ - -
----------- -----------
Net cash provided by operating activities........... 383,748 355,920

Cash flows from investing activities:
(Increase)decrease in investment securities......... - -
Payments for investment in subsidiaries - (200,000)
Repayment of loans by customers..................... - -
----------- -----------
Net cash provided by investing activities........... - (200,000)

Cash flows from financing activities:
Proceeds from issuance of common stock.............. 103,296 54,650
Dividends paid...................................... (473,037) (416,412)
----------- -----------
Net cash provided by financing activities........... (369,741) (361,762)

Net increase (decrease) in cash & due from banks.... 14,007 (205,842)

Cash & due from banks at beginning of period........ 247,784 275,795
----------- -----------
Cash & due from banks at end of period.............. $ 261,791 $ 69,953
=========== ===========
</table>

8
<page>
Item 2.

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
----------------------------------------------------------
AND RESULTS OF OPERATIONS
-------------------------

Earnings Summary
- ----------------
Net income for the first quarter of 2003 increased 17.82% to
$1.95 million from $1.66 million for the comparable period in
2002. Basic earnings per share were $0.50 in the first quarter
of 2003 compared with $0.42 in 2002.

Return on average assets was 1.34% for the first quarter of 2003
and 1.27% for the comparable period in 2002. Return on average
equity was 13.14% for the first quarter of 2003 and 12.62% for
the first quarter of 2002.

Net Interest Income
- -------------------
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. Net interest income, on a fully tax equivalent basis,
increased $481 thousand, or 8.58%, for the first quarter of 2003
over the same period in 2002. The net interest yield, defined as
the ratio of net interest income on a fully tax equivalent basis
to total earning assets, decreased to 4.44% in 2003 from 4.55% in
2002.

Tax equivalent interest income decreased $42 thousand, or 0.48%,
in the first quarter of 2003 from the same period of 2002.
Average earning assets increased $55.03 million, or 11.17% in the
first quarter of 2003 compared to the first quarter of 2002.
Comparing the first three months of 2003 to 2002, average loans
increased $29.44 million or 8.43% while investment securities
increased $14.64 million or 10.99%. Certificates of deposits
increased $13.93 million or 7.21% while checking and savings
accounts increased $17.93 million or 12.50%.

Interest expense decreased $523 thousand or 16.64% in the first
quarter of 2003 from the first quarter of 2002 while interest
bearing liabilities increased $42.27 million or 10.85% in the
first quarter of 2003 over the same period in 2002. The cost of
funding those liabilities decreased 80 basis points from 2002.

Page 10 shows an analysis of average earning assets, interest
bearing liabilities and rates and yields.

- -----------------------------------------------------------------------------------------------------------------------
OLD POINT FINANCIAL CORPORATION
NET INTEREST INCOME ANALYSIS For the quarter ended March 31,
(Fully taxable equivalent basis)* 2003 2002
- -----------------------------------------------------------------------------------------------------------------------

Average Average
Interest Rates Interest Rates
Average Income/ Earned/ Average Income/ Earned/
Dollars in thousands Balance Expense Paid Balance Expense Paid
- -----------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c> <c> <c>
Loans (net of unearned income)**................ $378,829 $ 6,706 7.08% $349,391 $ 6,674 7.64%
Investment securities:
Taxable....................................... 99,899 1,080 4.32% 83,162 1,129 5.43%
Tax-exempt.................................... 47,912 859 7.17% 50,012 903 7.22%
-------- --------- -------- ---------
Total investment securities................. 147,811 1,939 5.25% 133,174 2,032 6.10%
Federal funds sold.............................. 21,251 61 1.15% 10,296 42 1.63%
-------- --------- -------- ---------
Total earning assets.......................... $547,891 $ 8,706 6.36% $492,861 $ 8,748 7.10%

Time and savings deposits:
Interest-bearing transaction accounts......... $ 8,765 $ 10 0.46% $ 7,228 $ 10 0.55%
Money market deposit accounts................. 118,031 223 0.76% 105,836 317 1.20%
Savings accounts.............................. 34,525 75 0.87% 30,331 75 0.99%
Certificates of deposit, $100,000 or more..... 56,931 447 3.14% 51,296 524 4.09%
Other certificates of deposit................. 150,195 1,304 3.47% 141,902 1,725 4.86%
-------- --------- -------- ---------
Total time and savings deposits............. 368,447 2,059 2.24% 336,593 2,651 3.15%

Federal funds purchased and securities sold
under agreement to repurchase................. 23,000 63 1.10% 25,367 103 1.62%
Federal Home Loan Bank advances 38,763 493 5.09% 25,000 379 6.06%
Other short term borrowings..................... 1,795 5 1.11% 2,774 10 1.44%
-------- --------- -------- ---------
Total interest bearing liabilities............ $432,005 2,620 2.43% $389,734 3,143 3.23%

Net interest income/yield....................... $ 6,086 4.44% $ 5,605 4.55%
========= =========

* Tax equivalent yields based on 34% tax rate.
** Nonaccrual loans are included in the average loan balances and income on such loans is recognized on a cash basis

10
<page>

Provision/Allowance for Loan Losses
- -----------------------------------
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 thousand for the first
three months of 2003 and 2002. Loans charged off (net of
recoveries) were $194 thousand compared with loans charged off
(net of recoveries) of $196 thousand in the first three months
of 2002.

On March 31, 2003 nonperforming assets totaled $1.41 million
compared with $1.71 million on March 31, 2002. The March 2003
total consisted of $1.24 million in foreclosed real estate and
$165 thousand in a former branch site now listed for sale. The
March 2002 total consisted of $680 thousand in foreclosed real
estate, $680 thousand in two former branch sites now listed
for sale, and $345 thousand in nonaccrual loans. Loans still
accruing interest but past due 90 days or more decreased to
$396 thousand as of March 31, 2003 compared with $488 thousand
as of March 31, 2002.

The allowance for loan losses on March 31, 2003 was $4.67 million
compared with $4.00 million on March 31, 2002. It represented a
multiple of 3.32 times nonperforming assets. The allowance for
loan losses was 1.21% of loans on March 31, 2003 compared to 1.14%
at March 31, 2002.

Other Income
- ------------
For the first quarter of 2003 other income increased $160
thousand, or 9.73% over the same period in 2002. Other
Service Charges, Commissions and Fees increased $33 thousand or
12.07%. Bank Owned Life Insurance (BOLI) income was $100 thousand.

Other Expenses
- --------------
For the first quarter of 2003 other expenses increased $276
thousand or 6.28% over the same period in 2002. Salaries and
employee benefits increased $308 thousand or 11.78%.

Assets
- ------
At March 31, 2003 total assets were $591.85 million, up 2.64%
from $576.62 million at December 31, 2002. Total loans grew
$7.73 million or 2.04%.

Investment securities increased by $2.29 million, or 1.47%, in
2003. Federal funds sold increased $3.55 million or 40.77%.
Total deposits increased $12.12 million, or 2.67% in 2003 and
demand note balances to the United States Treasury decreased
$5.28 million from year-end 2002.

11
<page>
Capital Ratios
- --------------
The Company's capital position remains strong as evidenced by the
regulatory capital measurements. At March 31, 2003 the Tier I
capital ratio was 13.98%, the total capital ratio was 15.12% and
the leverage ratio was 9.81%. These ratios were all well above
the regulatory minimum levels of 4.00%, 8.00%, and 3.00%,
respectively.

Capital Resources
- -----------------
The Company purchased land in the 3rd quarter of 2002 for an
additional branch location in Chesapeake. Ground breaking for
the new branch began in April 2003. The Company continues to
expand the implementation of the new imaging system by working
towards the availability of imaged checks on the web in 2003.

The Company believes that it has adequate internal and external
resources available to fund its capital expenditure requirements.

Liquidity
- ---------
Liquidity is the ability of the Company to meet present and
future obligations to depositors and borrowers. The Company
experienced deposit growth that was slightly less than targeted
projections in the first quarter of 2003 while loan growth exceeded
projections. The Company has maintained liquidity as reflected
in the large balance in federal funds sold as of March 31, 2003.
The Company continues to monitor and seek investment
opportunities in an environment of relatively unchanged interest
rates.

Effects of Inflation
- --------------------
Management believes that the key to achieving satisfactory
performance is its ability to maintain or improve its net
interest margin and to generate additional fee income. The
Company's policy of investing in and funding with interest
sensitive assets and liabilities is intended to reduce the risks
inherent in a volatile economy.

Critical Accounting Policies
- ----------------------------
The Company's consolidated financial statements and accompanying
notes have been prepared in accordance with generally accepted
accounting principles applied on a consistent basis. The
preparation of financial statements in conformity with generally
accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
periods.

The Company continually evaluates the accounting policies and
estimates it uses to prepare the consolidated financial
statements. In general, management's estimates are based on
historical experience, on information from third party
professionals and on various other assumptions that are believed
to be reasonable under the facts and circumstances. Actual
results could differ from those estimates made by management.

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Allowance for Loan Losses. The allowance for loan losses is
-------------------------
an estimate of the losses that may be sustained in our loan
portfolio. The allowance is based on two basic principles of
accounting. (1) Statement of Financial Accounting Standards
(SFAS) No. 5 "Accounting for Contingencies", which requires that
losses be accrued when they are probable of occurring and
estimable and (2) SFAS No. 114, "Accounting by Creditors for
Impairment of a Loan", which requires that losses be accrued
based on the differences between that value of collateral,
present value of future cash flows or values that are observable
in the secondary market and the loan balance.

In evaluating the adequacy of the allowance for loan losses, the
Company has divided the loan portfolio into six pools of loans.
Allocation percentages are applied to the loan pools utilizing
the following factors:

1. economic trends and conditions
2. trends in volume and terms of loans
3. delinquency and non-accruals
4. lending policies
5. lending management and staff
6. concentrations of credit

The Company also maintains a four-year loss experience history on
each category of loan. Using the six factors listed above,
management can modify the allocation from the four-year
historical average.

Changes in the financial condition of individual borrowers, in
economic conditions, in historical loss experience and in the
conditions of the various markets in which collateral may be sold
all affect the required level of the allowance for loan losses
and the associated provision for loan losses.

Deferred Loan Fees. As part of the lending process, the
--------------------
Company receives fees from borrowers or potential borrowers
related to loans underwritten. All origination fees received in
the origination of a loan that are not pass-through fees, and
certain direct origination costs are deferred and amortized over
the life of the loan.

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Item 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
- ----------------------------------------------------------

Interest Sensitivity
- --------------------
Old Point Financial Corporation does not have any risk sensitive
instruments entered into for trading purposes.

Trading market risk is the risk to net income from changes in the
fair values of assets and liabilities that are marked-to-market
through the income statement. The Company does not carry a
trading portfolio and is currently not exposed to trading risk.

Old Point Financial Corporation does have risk sensitive
instruments entered into for other than trading purposes. Based
on scheduled maturities, the Company was liability sensitive as
of March 31, 2003. There were $99 million more in liabilities
than assets subject to repricing within three months. As of
December 31, 2002 the Company had $109 million more in
liabilities than assets subject to repricing within three months.

When the company is liability sensitive, net interest income
should improve if interest rates fall since liabilities will
reprice faster than assets. Conversely, if interest rates rise,
net interest income should decline. It should be noted, however,
that deposits totaling $159.36 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 these deposit rates have historically lagged behind
the changes in earning asset rates, thus mitigating somewhat the
impact from the liability sensitivity position.

Market risk is the risk of loss due to changes in instrument
values or earnings variations caused by changes in interest
rates, commodity prices and market variables such as equity price
risk. Old Point Financial Corporation's equity price risk is
immaterial and the company's primary exposure is to interest rate
risk.

Non-trading market risk is the risk to net income from changes in
interest rates on asset and liabilities, other than trading. The
risk arises through the potential mismatch resulting from timing
differences in repricing of loans and deposits. Old Point
Financial Corporation monitors this risk by reviewing the timing
differences and using a portfolio rate shock model that projects
various changes in interest income under a changing rate
environment of up to plus or minus 300 basis points. The rate
shock model reveals that a 200 basis point rise in rates would
cause approximately a 2.88% increase in net income. The model
indicates a 300 basis point rise in rates would cause
approximately a 3.94% increase in net income at March 31, 2003.

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Item 4. DISCLOSURE CONTROLS AND PROCEDURES
----------------------------------
Within the 90 day period prior to filing of this report, an evaluation
was carried out under the supervision and with the participation of Old
Point Financial Corporation's management, including our Chief Executive
Officer and Chief Financial Officer, of the effectiveness of our
disclosure controls and procedures (as defined in Rule [13a-14(c)/15d-14(c)]
under the Securities Exchange Act of 1934). Based on their evaluation,
our Chief Executive Officer and Chief Financial Officer have concluded
that the Company's disclosure controls and procedures are, to the best
of their knowledge, effective to ensure that information required to be
disclosed by Old Point Financial Corporation in reports that it files or
submits under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified in Securities and Exchange
Commission rules and forms. Subsequent to the date of their evaluation,
the Company did not make any significant changes in, nor take any corrective
actions regarding its internal controls or other factors that could
significantly affect these controls.

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PART II - OTHER INFORMATION

Item 6. EXHIBITS AND REPORTS ON FORM 8-K
--------------------------------
(a) Exhibits

99.1 Certification pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 from the Company's
Chief Executive Officer

99.2 Certification pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 from the Company's
Chief Financial Officer

(b) No reports on Form 8-K were filed during the first
quarter of 2003.

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SIGNATURES
----------

In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

OLD POINT FINANCIAL CORPORATION
May 12, 2003

By: /s/Robert F Shuford
------------------
Robert F. Shuford
President and Chief Executive Officer

By: /s/Laurie D. Grabow
-------------------
Laurie D. Grabow
Senior Vice President and CFO