Segment Reporting

3 Months Ended

Mar. 31, 2021

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 and asset management fees. 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, 2021 and 2020 follows:

	Three Months Ended March 31, 2021
(dollars in thousands)	Bank		Trust		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	10,973	$	5	$	3,148		$	(3,148	)	$	10,978
Income from fiduciary activities		-		1,027		-			-			1,027
Other income		2,866		256		50			(65	)		3,107
Total operating income		13,839		1,288		3,198			(3,213	)		15,112
Expenses
Interest expense		818		-		4			-			822
Provision for loan losses		150		-		-			-			150
Salaries and employee benefits		5,320		743		164			-			6,227
Other expenses		4,063		279		54			(65	)		4,331
Total operating expenses		10,351		1,022		222			(65	)		11,530
Income before taxes		3,488		266		2,976			(3,148	)		3,582
Income tax expense (benefit)		550		56		(36	)		-			570
Net income	$	2,938	$	210	$	3,012		$	(3,148	)	$	3,012
Capital expenditures	$	121	$	5	$	-		$	-		$	126
Total assets	$	1,250,353	$	7,003	$	117,956		$	(117,674	)	$	1,257,638

	Three Months Ended March 31, 2020
(dollars in thousands)	Bank		Trust		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	9,963	$	23	$	1,439		$	(1,439	)	$	9,986
Income from fiduciary activities		-		1,017		-			-			1,017
Other income		1,990		286		50			(65	)		2,261
Total operating income		11,953		1,326		1,489			(1,504	)		13,264
Expenses
Interest expense		1,548		-		20			-			1,568
Provision for loan losses		300		-		-			-			300
Salaries and employee benefits		4,988		814		192			-			5,994
Other expenses		3,682		342		77			(65	)		4,036
Total operating expenses		10,518		1,156		289			(65	)		11,898
Income before taxes		1,435		170		1,200			(1,439	)		1,366
Income tax expense (benefit)		129		37		(50	)		-			116
Net income	$	1,306	$	133	$	1,250		$	(1,439	)	$	1,250
Capital expenditures	$	368	$	-	$	-		$	-		$	368
Total assets	$	1,058,955	$	6,774	$	111,861		$	(112,313	)	$	1,065,277

The accounting policies of the segments are the same as those described in the summary of significant accounting policies reported in the Company’s 2020 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.