SEGMENT REPORTING

6 Months Ended

Jun. 30, 2022

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 15 - SEGMENT REPORTING

The Company’s reportable segments consist of Wealth Management and Mortgage. The chief operating decision maker ("CODM") is the Chief Executive Officer. The measure of profit or loss used by the CODM to identify and measure the Company’s reportable segments is income before income tax.

The Wealth Management segment consists of operations relative to the Company’s fully integrated wealth management products and services. Services provided include deposit, loan, insurance, and trust and investment management advisory products and services.

The Mortgage segment consists of operations relative to the Company’s residential mortgage service offerings. Mortgage products and services are financial in nature for which premiums are recognized net of expenses, upon the sale of mortgage loans to third parties.

The following presents the financial information for each segment that is specifically identifiable or based on allocations using internal methods as of or for the three and six months ended June 30, 2022 and 2021 (dollars in thousands):

As of or for the three months ended June 30, 2022	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	21,631	$	—	$	21,631
Total interest expense		1,493		—		1,493
Provision for loan losses		519		—		519
Net interest income, after provision for loan losses		19,619		—		19,619
Non-interest income		5,663		1,277		6,940
Total income before non-interest expense		25,282		1,277		26,559
Depreciation and amortization expense		522		12		534
Net (gain)/loss on assets held for sale		(2)		—		(2)
All other non-interest expense		17,836		2,215		20,051
Income before income taxes	$	6,926	$	(950)	$	5,976
Goodwill	$	30,400	$	—	$	30,400
Total assets		2,513,177		28,316		2,541,493

As of or for the three months ended June 30, 2021	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	15,548	$	—	$	15,548
Total interest expense		1,325		—		1,325
Provision for loan losses		12		—		12
Net interest income, after provision for loan losses		14,211		—		14,211
Non-interest income		5,573		3,927		9,500
Total income before non-interest expense		19,784		3,927		23,711
Depreciation and amortization expense		262		13		275
All other non-interest expense		12,539		2,709		15,248
Income before income taxes	$	6,983	$	1,205	$	8,188
Goodwill	$	24,191	$	—	$	24,191
Total assets		1,956,393		52,911		2,009,304

As of or for the six months ended June 30, 2022	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	41,296	$	—	$	41,296
Total interest expense		2,874		—		2,874
Provision for loan losses		729		—		729
Net interest income, after provision for loan losses		37,693		—		37,693
Non-interest income		11,745		3,795		15,540
Total income before non-interest expense		49,438		3,795		53,233
Depreciation and amortization expense		1,070		24		1,094
Net loss on assets held for sale		(3)		—		(3)
All other non-interest expense		34,434		4,416		38,850
Income before income taxes	$	13,937	$	(645)	$	13,292
Goodwill	$	30,400	$	—	$	30,400
Total assets		2,513,177		28,316		2,541,493

F

As of or for the six months ended June 30, 2021	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	30,047	$	—	$	30,047
Total interest expense		2,771		—		2,771
Provision for loan losses		12		—		12
Net interest income, after provision for loan losses		27,264		—		27,264
Non-interest income		10,978		9,124		20,102
Total income before non-interest expense		38,242		9,124		47,366
Depreciation and amortization expense		520		27		547
All other non-interest expense		24,822		5,770		30,592
Income before income taxes	$	12,900	$	3,327	$	16,227
Goodwill	$	24,191	$	—	$	24,191
Total assets		1,956,393		52,911		2,009,304