Segment Reporting

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Reporting

Note 9. Segment Reporting

The Company operates in a decentralized fashion in three principal business segments: The Old Point National Bank of Phoebus (the Bank), Old Point Trust & Financial Services, N. A. (Trust), and the Company as a separate segment (for purposes of this Note, the Parent). Revenues from the Bank's operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Trust's operating revenues consist principally of income from fiduciary activities. The Parent's revenues are mainly interest and dividends received from the Bank and Trust companies. The Company has no other segments.

The Company's reportable segments are strategic business units that offer different products and services. They are managed separately because each segment appeals to different markets and, accordingly, requires different technologies and marketing strategies.

Information about reportable segments, and reconciliation of such information to the consolidated financial statements as of and for the three and six months ended June 30, 2014 and 2013 follows:

	Three Months Ended June 30, 2014
	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	7,523	$	13	$	1,100		$	(1,100	)	$	7,536
Income from fiduciary activities		0		793		0			0			793
Other income		2,126		250		50			(66	)		2,360
Total operating income		9,649		1,056		1,150			(1,166	)		10,689
Expenses
Interest expense		962		0		0			0			962
Provision for loan losses		100		0		0			0			100
Salaries and employee benefits		4,192		680		109			0			4,981
Other expenses		3,347		265		(60	)		(66	)		3,486
Total operating expenses		8,601		945		49			(66	)		9,529
Income before taxes		1,048		111		1,101			(1,100	)		1,160
Income tax expense (benefit)		20		39		0			0			59
Net income	$	1,028	$	72	$	1,101		$	(1,100	)	$	1,101
Total assets	$	855,989	$	5,740	$	85,989		$	(86,817	)	$	860,901

	Three Months Ended June 30, 2013
	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	7,467	$	10	$	1,095		$	(1,096	)	$	7,476
Income from fiduciary activities		0		866		0			0			866
Other income		2,300		134		50			(65	)		2,419
Total operating income		9,767		1,010		1,145			(1,161	)		10,761
Expenses
Interest expense		1,177		0		0			0			1,177
Provision for loan losses		300		0		0			0			300
Salaries and employee benefits		4,144		553		108			0			4,805
Other expenses		3,021		226		64			(66	)		3,245
Total operating expenses		8,642		779		172			(66	)		9,527
Income before taxes		1,125		231		973			(1,095	)		1,234
Income tax expense (benefit)		182		79		(42	)		0			219
Net income	$	943	$	152	$	1,015		$	(1,095	)	$	1,015
Total assets	$	862,066	$	5,502	$	82,500		$	(83,187	)	$	866,881

	Six Months Ended June 30, 2014
	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	14,977	$	25	$	2,152		$	(2,152	)	$	15,002
Income from fiduciary activities		0		1,748		0			0			1,748
Other income		4,112		486		100			(131	)		4,567
Total operating income		19,089		2,259		2,252			(2,283	)		21,317
Expenses
Interest expense		1,993		0		0			0			1,993
Provision for loan losses		350		0		0			0			350
Salaries and employee benefits		8,290		1,325		219			0			9,834
Other expenses		6,512		522		(7	)		(131	)		6,896
Total operating expenses		17,145		1,847		212			(131	)		19,073
Income before taxes		1,944		412		2,040			(2,152	)		2,244
Income tax expense (benefit)		63		141		(38	)		0			166
Net income	$	1,881	$	271	$	2,078		$	(2,152	)	$	2,078
Total assets	$	855,989	$	5,740	$	85,989		$	(86,817	)	$	860,901

	Six Months Ended June 30, 2013
	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	15,087	$	19	$	2,057		$	(2,058	)	$	15,105
Income from fiduciary activities		0		1,766		0			0			1,766
Other income		4,418		245		100			(131	)		4,632
Total operating income		19,505		2,030		2,157			(2,189	)		21,503
Expenses
Interest expense		2,433		0		0			(1	)		2,432
Provision for loan losses		500		0		0			0			500
Salaries and employee benefits		8,438		1,069		219			0			9,726
Other expenses		6,142		444		94			(131	)		6,549
Total operating expenses		17,513		1,513		313			(132	)		19,207
Income before taxes		1,992		517		1,844			(2,057	)		2,296
Income tax expense (benefit)		277		175		(72	)		0			380
Net income	$	1,715	$	342	$	1,916		$	(2,057	)	$	1,916
Total assets	$	862,066	$	5,502	$	82,500		$	(83,187	)	$	866,881

The accounting policies of the segments are the same as those described in the summary of significant accounting policies reported in the Company's 2013 annual report on Form 10-K. The Company evaluates performance based on profit or loss from operations before income taxes, not including nonrecurring gains or losses.

Both the Parent and the Trust companies maintain deposit accounts with the Bank, on terms substantially similar to those available to other customers. These transactions are eliminated to reach consolidated totals.