Segment Reporting

9 Months Ended

Sep. 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 nine months ended September 30, 2014 and 2013 follows:

	Three Months Ended September 30, 2014
	(in thousands)
	Bank			Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	7,515		$	13	$	777		$	(778	)	$	7,527
Income from fiduciary activities		0			865		0			0			865
Other income		2,110			235		50			(65	)		2,330
Total operating income		9,625			1,113		827			(843	)		10,722
Expenses
Interest expense		951			0		0			0			951
Provision for loan losses		450			0		0			0			450
Salaries and employee benefits		4,248			639		107			0			4,994
Other expenses		3,453			264		72			(65	)		3,724
Total operating expenses		9,102			903		179			(65	)		10,119
Income before taxes		523			210		648			(778	)		603
Income tax expense (benefit)		(116	)		71		(44	)		0			(89	)
Net income	$	639		$	139	$	692		$	(778	)	$	692
Total assets	$	860,577		$	5,679	$	86,931		$	(87,831	)	$	865,356

	Three Months Ended September 30, 2013
	(in thousands)
	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	7,253	$	11	$	1,125		$	(1,125	)	$	7,264
Income from fiduciary activities		0		868		0			0			868
Other income		2,229		114		50			(65	)		2,328
Total operating income		9,482		993		1,175			(1,190	)		10,460
Expenses
Interest expense		1,144		0		0			0			1,144
Provision for loan losses		300		0		0			0			300
Salaries and employee benefits		3,896		553		106			0			4,555
Other expenses		2,976		234		77			(65	)		3,222
Total operating expenses		8,316		787		183			(65	)		9,221
Income before taxes		1,166		206		992			(1,125	)		1,239
Income tax expense (benefit)		178		70		(45	)		0			203
Net income	$	988	$	136	$	1,037		$	(1,125	)	$	1,036
Total assets	$	871,936	$	5,586	$	80,161		$	(81,126	)	$	876,557

	Nine Months Ended September 30, 2014
	(in thousands)
	Bank			Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	22,492		$	38	$	2,929		$	(2,930	)	$	22,529
Income from fiduciary activities		0			2,613		0			0			2,613
Other income		6,222			721		150			(196	)		6,897
Total operating income		28,714			3,372		3,079			(3,126	)		32,039
Expenses
Interest expense		2,944			0		0			0			2,944
Provision for loan losses		800			0		0			0			800
Salaries and employee benefits		12,538			1,964		326			0			14,828
Other expenses		9,965			786		65			(196	)		10,620
Total operating expenses		26,247			2,750		391			(196	)		29,192
Income before taxes		2,467			622		2,688			(2,930	)		2,847
Income tax expense (benefit)		(53	)		212		(82	)		0			77
Net income	$	2,520		$	410	$	2,770		$	(2,930	)	$	2,770
Total assets	$	860,577		$	5,679	$	86,931		$	(87,831	)	$	865,356

	Nine Months Ended September 30, 2013
	(in thousands)
	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	22,340	$	30	$	3,182		$	(3,183	)	$	22,369
Income from fiduciary activities		0		2,634		0			0			2,634
Other income		6,647		359		150			(196	)		6,960
Total operating income		28,987		3,023		3,332			(3,379	)		31,963
Expenses
Interest expense		3,577		0		0			(1	)		3,576
Provision for loan losses		800		0		0			0			800
Salaries and employee benefits		12,335		1,621		325			0			14,281
Other expenses		9,117		677		172			(196	)		9,770
Total operating expenses		25,829		2,298		497			(197	)		28,427
Income before taxes		3,158		725		2,835			(3,182	)		3,536
Income tax expense (benefit)		455		246		(118	)		0			583
Net income	$	2,703	$	479	$	2,953		$	(3,182	)	$	2,953
Total assets	$	871,936	$	5,586	$	80,161		$	(81,126	)	$	876,557

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.