Segment Reporting

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Reporting

Note 10. 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 fees 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, 2015 and 2014 follows:

	Three Months Ended September 30, 2015
	(in thousands)
	Bank			Trust		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	7,596		$	13	$	947		$	(947	)	$	7,609
Income from fiduciary activities		0			846		0			0			846
Other income		2,125			267		50			(65	)		2,377
Total operating income		9,721			1,126		997			(1,012	)		10,832
Expenses
Interest expense		915			0		0			0			915
Provision for loan losses		(50	)		0		0			0			(50	)
Salaries and employee benefits		4,680			716		114			0			5,510
Other expenses		3,328			279		99			(65	)		3,641
Total operating expenses		8,873			995		213			(65	)		10,016
Income before taxes		848			131		784			(947	)		816
Income tax expense (benefit)		(13	)		45		(56	)		0			(24	)
Net income	$	861		$	86	$	840		$	(947	)	$	840
Capital expenditures	$	154		$	2	$	0		$	0		$	156
Total assets	$	873,986		$	5,805	$	90,866		$	(91,705	)	$	878,952

	Three Months Ended September 30, 2014
	(in thousands)
	Bank			Trust		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
Capital expenditures	$	411		$	2	$	0		$	0		$	413
Total assets	$	860,577		$	5,679	$	86,931		$	(87,831	)	$	865,356

	Nine Months Ended September 30, 2015
	(in thousands)
	Bank		Trust		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	22,624	$	39	$	3,590		$	(3,590	)	$	22,663
Income from fiduciary activities		0		2,740		0			0			2,740
Other income		6,387		778		150			(196	)		7,119
Total operating income		29,011		3,557		3,740			(3,786	)		32,522
Expenses
Interest expense		2,726		0		0			0			2,726
Provision for loan losses		250		0		0			0			250
Salaries and employee benefits		13,263		2,014		339			0			15,616
Other expenses		9,526		771		215			(196	)		10,316
Total operating expenses		25,765		2,785		554			(196	)		28,908
Income before taxes		3,246		772		3,186			(3,590	)		3,614
Income tax expense (benefit)		165		263		(138	)		0			290
Net income	$	3,081	$	509	$	3,324		$	(3,590	)	$	3,324
Capital expenditures	$	1,183	$	21	$	0		$	0		$	1,204
Total assets	$	873,986	$	5,805	$	90,866		$	(91,705	)	$	878,952

	Nine Months Ended September 30, 2014
	(in thousands)
	Bank			Trust		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
Capital expenditures	$	3,480		$	16	$	0		$	0		$	3,496
Total assets	$	860,577		$	5,679	$	86,931		$	(87,831	)	$	865,356

The accounting policies of the segments are the same as those described in the summary of significant accounting policies reported in the Company's 2014 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.