Segment Reporting

3 Months Ended

Mar. 31, 2016

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 months ended March 31, 2016 and 2015 follows:

	Three Months Ended March 31, 2016
	Bank		Trust		Parent			Eliminations			Consolidated
	(in thousands)
Revenues
Interest and dividend income	$	7,351	$	14	$	1,146		$	(1,146	)	$	7,365
Income from fiduciary activities		0		901		0			0			901
Other income		2,503		276		50			(65	)		2,764
Total operating income		9,854		1,191		1,196			(1,211	)		11,030
Expenses
Interest expense		719		0		0			0			719
Provision for loan losses		150		0		0			0			150
Salaries and employee benefits		4,362		678		114			0			5,154
Other expenses		3,615		261		126			(65	)		3,937
Total operating expenses		8,846		939		240			(65	)		9,960
Income before taxes		1,008		252		956			(1,146	)		1,070
Income tax expense (benefit)		28		86		(65	)		0			49
Net income	$	980	$	166	$	1,021		$	(1,146	)	$	1,021
Capital expenditures	$	367	$	4	$	0		$	0		$	371
Total assets	$	851,716	$	5,865	$	94,236		$	(94,970	)	$	856,847

	Three Months Ended March 31, 2015
	Bank		Trust		Parent			Eliminations			Consolidated
	(in thousands)
Revenues
Interest and dividend income	$	7,491	$	13	$	1,268		$	(1,268	)	$	7,504
Income from fiduciary activities		0		980		0			0			980
Other income		2,051		261		50			(65	)		2,297
Total operating income		9,542		1,254		1,318			(1,333	)		10,781
Expenses
Interest expense		893		0		0			0			893
Provision for loan losses		275		0		0			0			275
Salaries and employee benefits		4,309		627		113			0			5,049
Other expenses		3,035		236		32			(65	)		3,238
Total operating expenses		8,512		863		145			(65	)		9,455
Income before taxes		1,030		391		1,173			(1,268	)		1,326
Income tax expense (benefit)		20		133		(32	)		0			121
Net income	$	1,010	$	258	$	1,205		$	(1,268	)	$	1,205
Capital expenditures	$	955	$	18	$	0		$	0		$	973
Total assets	$	882,771	$	5,848	$	89,543		$	(90,484	)	$	887,678

The accounting policies of the segments are the same as those described in the summary of significant accounting policies reported in the Company's 2015 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.