Segment Reporting

3 Months Ended

Mar. 31, 2013

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 months ended March 31, 2013 and 2012 follows:

	Three Months Ended March 31, 2013
	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	7,620,028	$	9,277	$	961,562		$	(961,951	)	$	7,628,916
Income from fiduciary activities		0		899,805		0			0			899,805
Other income		2,118,122		110,768		50,100			(65,526	)		2,213,464
Total operating income		9,738,150		1,019,850		1,011,662			(1,027,477	)		10,742,185
Expenses
Interest expense		1,254,908		0		0			(389	)		1,254,519
Provision for loan losses		200,000		0		0			0			200,000
Salaries and employee benefits		4,293,922		516,050		110,954			0			4,920,926
Other expenses		3,122,462		217,519		30,421			(65,526	)		3,304,876
Total operating expenses		8,871,292		733,569		141,375			(65,915	)		9,680,321
Income before taxes		866,858		286,281		870,287			(961,562	)		1,061,864
Income tax expense (benefit)		94,408		97,169		(31,030	)		0			160,547
Net income	$	772,450	$	189,112	$	901,317		$	(961,562	)	$	901,317
Total assets	$	886,584,818	$	5,491,165	$	88,229,091		$	(89,466,296	)	$	890,838,778

	Three Months Ended March 31, 2012
	Bank		Trust		Unconsolidated Parent		Eliminations			Consolidated
Revenues
Interest and dividend income	$	8,412,294	$	9,584	$	1,092,404	$	(1,092,090	)	$	8,422,192
Income from fiduciary activities		0		826,646		0		0			826,646
Other income		2,352,677		104,338		165,000		(180,776	)		2,441,239
Total operating income		10,764,971		940,568		1,257,404		(1,272,866	)		11,690,077
Expenses
Interest expense		1,511,220		0		1,567		(1,861	)		1,510,926
Provision for loan losses		200,000		0		0		0			200,000
Salaries and employee benefits		4,288,536		537,013		134,728		0			4,960,277
Other expenses		3,486,413		245,316		38,208		(180,776	)		3,589,161
Total operating expenses		9,486,169		782,329		174,503		(182,637	)		10,260,364
Income before taxes		1,278,802		158,239		1,082,901		(1,090,229	)		1,429,713
Income tax expense (benefit)		293,179		53,633		4,600		0			351,412
Net income	$	985,623	$	104,606	$	1,078,301	$	(1,090,229	)	$	1,078,301
Total assets	$	865,301,605	$	5,147,172	$	86,099,666	$	(86,966,075	)	$	869,582,368

The accounting policies of the segments are the same as those described in the summary of significant accounting policies reported in the Company's 2012 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.