Segment Reporting

9 Months Ended

Sep. 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 nine months ended September 30, 2020 and 2019 follows:

	Three Months Ended September 30, 2020
(dollars in thousands)	Bank		Trust		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	9,732	$	6	$	1,244		$	(1,245	)	$	9,737
Income from fiduciary activities		-		955		-			-			955
Other income		2,483		234		50			(65	)		2,702
Total operating income		12,215		1,195		1,294			(1,310	)		13,394
Expenses
Interest expense		1,258		-		11			-			1,269
Provision for loan losses		300		-		-			-			300
Salaries and employee benefits		5,746		760		154			-			6,660
Other expenses		3,752		249		68			(65	)		4,004
Total operating expenses		11,056		1,009		233			(65	)		12,233
Income before taxes		1,159		186		1,061			(1,245	)		1,161
Income tax expense (benefit)		61		39		(39	)		-			61
Net income	$	1,098	$	147	$	1,100		$	(1,245	)	$	1,100
Capital expenditures	$	86	$	10	$	-		$	-		$	96
Total assets	$	1,249,144	$	6,961	$	118,423		$	(118,435	)	$	1,256,093

	Three Months Ended September 30, 2019
(dollars in thousands)	Bank		Trust		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	10,177	$	32	$	2,371		$	(2,372	)	$	10,208
Income from fiduciary activities		-		949		-			-			949
Other income		2,573		229		51			(65	)		2,788
Total operating income		12,750		1,210		2,422			(2,437	)		13,945
Expenses
Interest expense		1,629		-		27			-			1,656
Recovery of loan losses		-		-		-			-			-
Salaries and employee benefits		5,099		777		115			-			5,991
Other expenses		3,432		253		85			(65	)		3,705
Total operating expenses		10,160		1,030		227			(65	)		11,352
Income before taxes		2,590		180		2,195			(2,372	)		2,593
Income tax expense (benefit)		359		39		(37	)		-			361
Net income	$	2,231	$	141	$	2,232		$	(2,372	)	$	2,232
Capital expenditures	$	614	$	2	$	-		$	-		$	616
Total assets	$	1,044,249	$	6,531	$	111,188		$	(111,373	)	$	1,050,595

	Nine Months Ended September 30, 2020
(dollars in thousands)	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	29,532	$	40	$	5,362		$	(5,363	)	$	29,571
Income from fiduciary activities		-		2,881		-			-			2,881
Other income		7,289		769		150			(196	)		8,012
Total operating income		36,821		3,690		5,512			(5,559	)		40,464
Expenses
Interest expense		4,167		-		45			-			4,212
Provision for loan losses		900		-		-			-			900
Salaries and employee benefits		15,305		2,315		498			-			18,118
Other expenses		10,886		827		263			(196	)		11,780
Total operating expenses		31,258		3,142		806			(196	)		35,010
Income before taxes		5,563		548		4,706			(5,363	)		5,454
Income tax expense (benefit)		631		117		(138	)		-			610
Net income	$	4,932	$	431	$	4,844		$	(5,363	)	$	4,844
Capital expenditures	$	742	$	16	$	-		$	-		$	758
Total assets	$	1,249,144	$	6,961	$	118,423		$	(118,435	)	$	1,256,093

	Nine Months Ended September 30, 2019
(dollars in thousands)	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	30,124	$	94	$	6,326		$	(6,327	)	$	30,217
Income from fiduciary activities		-		2,837		-			-			2,837
Other income		7,114		820		151			(196	)		7,889
Total operating income		37,238		3,751		6,477			(6,523	)		40,943
Expenses
Interest expense		4,686		-		89			-			4,775
Provision for loan losses		1,013		-		-			-			1,013
Salaries and employee benefits		14,972		2,300		345			-			17,617
Other expenses		10,039		760		275			(196	)		10,878
Total operating expenses		30,710		3,060		709			(196	)		34,283
Income before taxes		6,528		691		5,768			(6,327	)		6,660
Income tax expense (benefit)		744		148		(117	)		-			775
Net income	$	5,784	$	543	$	5,885		$	(6,327	)	$	5,885
Capital expenditures	$	1,269	$	26	$	-		$	-		$	1,295
Total assets	$	1,044,249	$	6,531	$	111,188		$	(111,373	)	$	1,050,595

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.