Segment Reporting

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

Note 11. 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, 2020 and 2019 follows:

	Three Months Ended June 30, 2020
(dollars in thousands)	Bank		Trust		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	9,837	$	11	$	2,679		$	(2,679	)	$	9,848
Income from fiduciary activities		-		909		-			-			909
Other income		2,816		249		50			(66	)		3,049
Total operating income		12,653		1,169		2,729			(2,745	)		13,806
Expenses
Interest expense		1,361		-		14			-			1,375
Provision for loan losses		300		-		-			-			300
Salaries and employee benefits		4,571		741		152			-			5,464
Other expenses		3,452		236		118			(66	)		3,740
Total operating expenses		9,684		977		284			(66	)		10,879
Income before taxes		2,969		192		2,445			(2,679	)		2,927
Income tax expense (benefit)		441		41		(49	)		-			433
Net income	$	2,528	$	151	$	2,494		$	(2,679	)	$	2,494
Capital expenditures	$	288	$	6	$	-		$	-		$	294
Total assets	$	1,214,546	$	7,008	$	117,558		$	(117,867	)	$	1,221,245

	Three Months Ended June 30, 2019
(dollars in thousands)	Bank		Trust		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	10,101	$	32	$	1,805		$	(1,805	)	$	10,133
Income from fiduciary activities		-		929		-			-			929
Other income		2,353		307		50			(66	)		2,644
Total operating income		12,454		1,268		1,855			(1,871	)		13,706
Expenses
Interest expense		1,571		-		31			-			1,602
Provision for loan losses		787		-		-			-			787
Salaries and employee benefits		5,055		756		116			-			5,927
Other expenses		3,259		258		130			(66	)		3,581
Total operating expenses		10,672		1,014		277			(66	)		11,897
Income before taxes		1,782		254		1,578			(1,805	)		1,809
Income tax expense (benefit)		176		54		(47	)		-			183
Net income	$	1,606	$	200	$	1,625		$	(1,805	)	$	1,626
Capital expenditures	$	157	$	24	$	-		$	-		$	181
Total assets	$	1,023,404	$	6,498	$	109,698		$	(110,196	)	$	1,029,404

	Six Months Ended June 30, 2020
(dollars in thousands)	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	19,800	$	34	$	4,118		$	(4,118	)	$	19,834
Income from fiduciary activities		-		1,926		-			-			1,926
Other income		4,806		535		100			(131	)		5,310
Total operating income		24,606		2,495		4,218			(4,249	)		27,070
Expenses
Interest expense		2,909		-		34			-			2,943
Provision for loan losses		600		-		-			-			600
Salaries and employee benefits		9,559		1,555		344			-			11,458
Other expenses		7,134		578		195			(131	)		7,776
Total operating expenses		20,202		2,133		573			(131	)		22,777
Income before taxes		4,404		362		3,645			(4,118	)		4,293
Income tax expense (benefit)		570		78		(99	)		-			549
Net income	$	3,834	$	284	$	3,744		$	(4,118	)	$	3,744
Capital expenditures	$	656	$	6	$	-		$	-		$	662
Total assets	$	1,214,546	$	7,008	$	117,558		$	(117,867	)	$	1,221,245

	Six Months Ended June 30, 2019
(dollars in thousands)	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	19,947	$	62	$	3,955		$	(3,955	)	$	20,009
Income from fiduciary activities		-		1,888		-			-			1,888
Other income		4,541		591		100			(131	)		5,101
Total operating income		24,488		2,541		4,055			(4,086	)		26,998
Expenses
Interest expense		3,057		-		62			-			3,119
Provision for loan losses		1,013		-		-			-			1,013
Salaries and employee benefits		9,873		1,523		230			-			11,626
Other expenses		6,607		507		190			(131	)		7,173
Total operating expenses		20,550		2,030		482			(131	)		22,931
Income before taxes		3,938		511		3,573			(3,955	)		4,067
Income tax expense (benefit)		385		109		(80	)		-			414
Net income	$	3,553	$	402	$	3,653		$	(3,955	)	$	3,653
Capital expenditures	$	655	$	24	$	-		$	-		$	679
Total assets	$	1,023,404	$	6,498	$	109,698		$	(110,196	)	$	1,029,404

The accounting policies of the segments are the same as those described in the summary of significant accounting policies reported in the Company’s 2019 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.