Segment Reporting

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2021 and 2020 follows:

	Three Months Ended June 30, 2021
(dollars in thousands)	Bank		Trust		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	9,853	$	6	$	2,029		$	(2,029	)	$	9,859
Income from fiduciary activities		-		1,051		-			-			1,051
Other income		2,219		283		50			(65	)		2,487
Total operating income		12,072		1,340		2,079			(2,094	)		13,397
Expenses
Interest expense		752		-		1			-			753
Provision for loan losses		-		-		-			-			-
Salaries and employee benefits		5,299		764		164			-			6,227
Other expenses		3,999		252		122			(65	)		4,308
Total operating expenses		10,050		1,016		287			(65	)		11,288
Income before taxes		2,022		324		1,792			(2,029	)		2,109
Income tax expense (benefit)		248		69		(50	)		-			267
Net income	$	1,774	$	255	$	1,842		$	(2,029	)	$	1,842
Capital expenditures	$	598	$	36	$	-		$	-		$	634
Total assets	$	1,267,532	$	7,213	$	120,000		$	(119,934	)	$	1,274,811

	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

	Six Months Ended June 30, 2021
(dollars in thousands)	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	20,826	$	11	$	5,177		$	(5,177	)	$	20,837
Income from fiduciary activities		-		2,078		-			-			2,078
Other income		5,085		539		100			(130	)		5,594
Total operating income		25,911		2,628		5,277			(5,307	)		28,509
Expenses
Interest expense		1,570		-		5			-			1,575
Provision for loan losses		150		-		-			-			150
Salaries and employee benefits		10,619		1,507		328			-			12,454
Other expenses		8,062		531		176			(130	)		8,639
Total operating expenses		20,401		2,038		509			(130	)		22,818
Income before taxes		5,510		590		4,768			(5,177	)		5,691
Income tax expense (benefit)		798		125		(86	)		-			837
Net income	$	4,712	$	465	$	4,854		$	(5,177	)	$	4,854
Capital expenditures	$	719	$	41	$	-		$	-		$	760
Total assets	$	1,267,532	$	7,213	$	120,000		$	(119,934	)	$	1,274,811

	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

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.