Segment Reporting

9 Months Ended

Sep. 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 nine months ended September 30, 2024 and 2023 (in thousands):

	Commercial		Mortgage				Consolidated
	Banking		Banking		Eliminations		Totals
Three Months Ended September 30, 2024
Revenues
Interest income	$	10,203	$	133	$	—	$	10,336
Mortgage banking income, net		—		632		(90)		542
Other revenues		886		—		(41)		845
Total revenues		11,089		765		(131)		11,723
Expenses
Provision for credit losses		—		—		—		—
Interest expense		3,265		—		—		3,265
Salaries and benefits		2,842		684		—		3,526
Other expenses		2,235		214		(131)		2,318
Total operating expenses		8,342		898		(131)		9,109
Income (loss) before income taxes		2,747		(133)		—		2,614
Income tax expense (benefit)		536		(28)		—		508
Net income (loss)	$	2,211	$	(105)	$	—	$	2,106
Capital expenditures by segment	$	34	$	—	$	—	$	34
Total assets	$	772,990	$	16,625	$	(30,150)	$	759,465

	Commercial		Mortgage				Consolidated
	Banking		Banking		Eliminations		Totals
Three Months Ended September 30, 2023
Revenues
Interest income	$	8,334	$	128	$	—	$	8,462
Mortgage banking income, net		—		570		(81)		489
Other revenues		871		—		(43)		828
Total revenues		9,205		698		(124)		9,779
Expenses
Provision for credit losses		—		—		—		—
Interest expense		2,348		—		—		2,348
Salaries and benefits		2,611		699		—		3,310
Loss on sale of investment securities, net		4,986		—		—		4,986
Other expenses		2,279		287		(124)		2,442
Total operating expenses		12,224		986		(124)		13,086
Loss before income taxes		(3,019)		(288)		—		(3,307)
Income tax benefit		(693)		(61)		—		(754)
Net loss	$	(2,326)	$	(227)	$	—	$	(2,553)
Capital expenditures by segment	$	123	$	—	$	—	$	123
Total assets	$	738,452	$	17,151	$	(28,099)	$	727,504

	Commercial		Mortgage				Consolidated
	Banking		Banking		Eliminations		Totals
Nine Months Ended September 30, 2024
Revenues
Interest income	$	29,180	$	360	$	—	$	29,540
Mortgage banking income, net		—		2,140		(196)		1,944
Other revenues		2,562		—		(124)		2,438
Total revenues		31,742		2,500		(320)		33,922
Expenses
Provision for credit losses		150		—		—		150
Interest expense		9,463		—		—		9,463
Salaries and benefits		8,418		2,057		—		10,475
Other expenses		6,575		682		(320)		6,937
Total operating expenses		24,606		2,739		(320)		27,025
Income (loss) before income taxes		7,136		(239)		—		6,897
Income tax expense (benefit)		1,416		(50)		—		1,366
Net income (loss)	$	5,720	$	(189)	$	—	$	5,531
Capital expenditures by segment	$	273	$	—	$	—	$	273
Total assets	$	772,990	$	16,625	$	(30,150)	$	759,465

	Commercial		Mortgage				Consolidated
	Banking		Banking		Eliminations		Totals
Nine Months Ended September 30, 2023
Revenues
Interest income	$	23,876	$	268	$	—	$	24,144
Mortgage banking income, net		—		1,718		(365)		1,353
Other revenues		2,572		—		(130)		2,442
Total revenues		26,448		1,986		(495)		27,939
Expenses
Provision for credit losses		—		—		—		—
Interest expense		5,541		—		—		5,541
Salaries and benefits		8,048		2,125		—		10,173
Loss on sale of investment securities, net		4,986		—		—		4,986
Other expenses		6,809		854		(495)		7,168
Total operating expenses		25,384		2,979		(495)		27,868
Income (loss) before income taxes		1,064		(993)		—		71
Income tax expense (benefit)		54		(209)		—		(155)
Net income (loss)	$	1,010	$	(784)	$	—	$	226
Capital expenditures by segment	$	550	$	—	$	—	$	550
Total assets	$	738,452	$	17,151	$	(28,099)	$	727,504