Segment Reporting

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2016 and 2015 follows:

	Three Months Ended June 30, 2016
	Bank			Trust		Parent			Eliminations			Consolidated
	(in thousands)
Revenues
Interest and dividend income	$	7,420		$	15	$	725		$	(725	)	$	7,435
Income from fiduciary activities		0			877		0			0			877
Other income		2,174			250		50			(65	)		2,409
Total operating income		9,594			1,142		775			(790	)		10,721
Expenses
Interest expense		582			0		0			0			582
Provision for loan losses		1,250			0		0			0			1,250
Salaries and employee benefits		4,124			679		87			0			4,890
Other expenses		3,183			251		226			(65	)		3,595
Total operating expenses		9,139			930		313			(65	)		10,317
Income before taxes		455			212		462			(725	)		404
Income tax expense (benefit)		(131	)		72		(89	)		0			(148	)
Net income	$	586		$	140	$	551		$	(725	)	$	552
Capital expenditures	$	105		$	0	$	0		$	0		$	105
Total assets	$	891,786		$	5,814	$	95,933		$	(95,860	)	$	897,673

	Three Months Ended June 30, 2015
	Bank		Trust		Parent			Eliminations			Consolidated
	(in thousands)
Revenues
Interest and dividend income	$	7,537	$	13	$	1,375		$	(1,375	)	$	7,550
Income from fiduciary activities		0		914		0			0			914
Other income		2,211		250		50			(66	)		2,445
Total operating income		9,748		1,177		1,425			(1,441	)		10,909
Expenses
Interest expense		918		0		0			0			918
Provision for loan losses		25		0		0			0			25
Salaries and employee benefits		4,275		671		111			0			5,057
Other expenses		3,163		256		84			(66	)		3,437
Total operating expenses		8,381		927		195			(66	)		9,437
Income before taxes		1,367		250		1,230			(1,375	)		1,472
Income tax expense (benefit)		157		85		(49	)		0			193
Net income	$	1,210	$	165	$	1,279		$	(1,375	)	$	1,279
Capital expenditures	$	73	$	2	$	0		$	0		$	75
Total assets	$	888,344	$	5,815	$	89,599		$	(90,256	)	$	893,502

	Six Months Ended June 30, 2016
	Bank			Trust		Parent			Eliminations			Consolidated
	(in thousands)
Revenues
Interest and dividend income	$	14,771		$	29	$	1,871		$	(1,871	)	$	14,800
Income from fiduciary activities		0			1,778		0			0			1,778
Other income		4,677			526		100			(130	)		5,173
Total operating income		19,448			2,333		1,971			(2,001	)		21,751
Expenses
Interest expense		1,301			0		0			0			1,301
Provision for loan losses		1,400			0		0			0			1,400
Salaries and employee benefits		8,486			1,357		201			0			10,044
Other expenses		6,798			512		352			(130	)		7,532
Total operating expenses		17,985			1,869		553			(130	)		20,277
Income before taxes		1,463			464		1,418			(1,871	)		1,474
Income tax expense (benefit)		(103	)		158		(154	)		0			(99	)
Net income	$	1,566		$	306	$	1,572		$	(1,871	)	$	1,573
Capital expenditures	$	472		$	4	$	0		$	0		$	476
Total assets	$	891,786		$	5,814	$	95,933		$	(95,860	)	$	897,673

	Six Months Ended June 30, 2015
	Bank		Trust		Parent			Eliminations			Consolidated
	(in thousands)
Revenues
Interest and dividend income	$	15,028	$	26	$	2,643		$	(2,643	)	$	15,054
Income from fiduciary activities		0		1,894		0			0			1,894
Other income		4,262		511		100			(131	)		4,742
Total operating income		19,290		2,431		2,743			(2,774	)		21,690
Expenses
Interest expense		1,811		0		0			0			1,811
Provision for loan losses		300		0		0			0			300
Salaries and employee benefits		8,583		1,298		225			0			10,106
Other expenses		6,198		492		116			(131	)		6,675
Total operating expenses		16,892		1,790		341			(131	)		18,892
Income before taxes		2,398		641		2,402			(2,643	)		2,798
Income tax expense (benefit)		178		218		(82	)		0			314
Net income	$	2,220	$	423	$	2,484		$	(2,643	)	$	2,484
Capital expenditures	$	1,028	$	20	$	0		$	0		$	1,048
Total assets	$	888,344	$	5,815	$	89,599		$	(90,256	)	$	893,502

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.