Segment Reporting

6 Months Ended

Jun. 30, 2024

Segment Reporting

Segment Reporting

Note 12 – Segment Reporting

The Company has two reportable segments: traditional commercial banking and mortgage banking. Revenues from commercial banking operations consist primarily of interest earned on loans and securities and fees from deposit services. Mortgage banking operating revenues consist principally of interest earned on mortgage loans held for sale, gains on sales of loans in the secondary mortgage market, and loan origination fee income.

The Commercial Banking Segment provides the Mortgage Banking Segment with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges the Mortgage Banking Segment interest based on the Commercial Banking Segment’s cost of funds. Additionally, the Mortgage Banking Segment leases premises from the Commercial Banking Segment. These transactions are eliminated in the consolidation process.

The following table presents segment information as of and for the three and six months ended June 30, 2024 and 2023 (in thousands):

	Commercial		Mortgage				Consolidated
	Banking		Banking		Eliminations		Totals
Three Months Ended June 30, 2024
Revenues
Interest income	$	9,734	$	135	$	—	$	9,869
Mortgage banking income, net		—		600		(48)		552
Other revenues		880		—		(41)		839
Total revenues		10,614		735		(89)		11,260
Expenses
Provision for credit losses		—		—		—		—
Interest expense		3,259		—		—		3,259
Salaries and benefits		2,791		694		—		3,485
Other expenses		2,309		234		(89)		2,454
Total operating expenses		8,359		928		(89)		9,198
Income (loss) before income taxes		2,255		(193)		—		2,062
Income tax expense (benefit)		449		(40)		—		409
Net income	$	1,806	$	(153)	$	—	$	1,653
Capital expenditures by segment	$	63	$	—	$	—	$	63
Total assets	$	755,588	$	16,659	$	(24,521)	$	747,726

	Commercial		Mortgage				Consolidated
	Banking		Banking		Eliminations		Totals
Three Months Ended June 30, 2023
Revenues
Interest income	$	7,998	$	101	$	—	$	8,099
Mortgage banking income, net		—		610		(224)		386
Other revenues		878		—		(43)		835
Total revenues		8,876		711		(267)		9,320
Expenses
Provision for credit losses		—		—		—		—
Interest expense		1,975		—		—		1,975
Salaries and benefits		2,694		721		—		3,415
Other expenses		2,391		293		(267)		2,417
Total operating expenses		7,060		1,014		(267)		7,807
Income (loss) before income taxes		1,816		(303)		—		1,513
Income tax expense (benefit)		338		(64)		—		274
Net income (loss)	$	1,478	$	(239)	$	—	$	1,239
Capital expenditures by segment	$	—	$	—	$	—	$	—
Total assets	$	764,034	$	17,856	$	(27,235)	$	754,655

	Commercial		Mortgage				Consolidated
	Banking		Banking		Eliminations		Totals
Six Months Ended June 30, 2024
Revenues
Interest income	$	18,977	$	227	$	—	$	19,204
Mortgage banking income, net		—		1,509		(107)		1,402
Other revenues		1,675		—		(83)		1,592
Total revenues		20,652		1,736		(190)		22,198
Expenses
Provision for credit losses		150		—		—		150
Interest expense		6,198		—		—		6,198
Salaries and benefits		5,576		1,373		—		6,949
Loss on sale of investment securities, net		—		—		—		—
Other expenses		4,339		469		(190)		4,618
Total operating expenses		16,263		1,842		(190)		17,915
Income (loss) before income taxes		4,389		(106)		—		4,283
Income tax expense (benefit)		880		(22)		—		858
Net income (loss)	$	3,509	$	(84)	$	—	$	3,425
Capital expenditures by segment	$	239	$	—	$	—	$	239
Total assets	$	755,588	$	16,659	$	(24,521)	$	747,726

	Commercial		Mortgage				Consolidated
	Banking		Banking		Eliminations		Totals
Six Months Ended June 30, 2023
Revenues
Interest income	$	15,541	$	141	$	—	$	15,682
Mortgage banking income, net		—		1,148		(284)		864
Other revenues		1,700		—		(86)		1,614
Total revenues		17,241		1,289		(370)		18,160
Expenses
Provision for credit losses		—		—		—		—
Interest expense		3,193		—		—		3,193
Salaries and benefits		5,436		1,427		—		6,863
Other expenses		4,529		567		(370)		4,726
Total operating expenses		13,158		1,994		(370)		14,782
Income (loss) before income taxes		4,083		(705)		—		3,378
Income tax expense (benefit)		747		(148)		—		599
Net income (loss)	$	3,336	$	(557)	$	—	$	2,779
Capital expenditures by segment	$	198	$	—	$	—	$	198
Total assets	$	764,034	$	17,856	$	(27,235)	$	754,655