SEGMENT REPORTING

9 Months Ended

Sep. 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 during the periods presented (dollars in thousands):

As of or for the three months ended September 30, 2022	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	26,530	$	—	$	26,530
Total interest expense		3,733		—		3,733
Provision for loan losses		1,756		—		1,756
Net interest income, after provision for loan losses		21,041		—		21,041
Non-interest income		5,514		940		6,454
Total income before non-interest expense		26,555		940		27,495
Depreciation and amortization expense		492		10		502
All other non-interest expense		17,029		1,729		18,758
Income before income taxes	$	9,034	$	(799)	$	8,235
Goodwill	$	30,400	$	—	$	30,400
Total assets		2,713,603		15,096		2,728,699

As of or for the three months ended September 30, 2021	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	16,146	$	—	$	16,146
Total interest expense		1,300		—		1,300
Provision for loan losses		406		—		406
Net interest income, after provision for loan losses		14,440		—		14,440
Non-interest income		5,995		4,497		10,492
Total income before non-interest expense		20,435		4,497		24,932
Depreciation and amortization expense		272		13		285
All other non-interest expense		13,964		2,217		16,181
Income before income taxes	$	6,199	$	2,267	$	8,466
Goodwill	$	24,191	$	—	$	24,191
Total assets		2,020,896		55,376		2,076,272

As of or for the nine months ended September 30, 2022	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	67,826	$	—	$	67,826
Total interest expense		6,607		—		6,607
Provision for loan losses		2,485		—		2,485
Net interest income, after provision for loan losses		58,734		—		58,734
Non-interest income		17,259		4,735		21,994
Total income before non-interest expense		75,993		4,735		80,728
Depreciation and amortization expense		1,562		34		1,596
All other non-interest expense		51,460		6,145		57,605
Income before income taxes	$	22,971	$	(1,444)	$	21,527
Goodwill	$	30,400	$	—	$	30,400
Total assets		2,713,603		15,096		2,728,699

F

As of or for the nine months ended September 30, 2021	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	46,193	$	—	$	46,193
Total interest expense		4,071		—		4,071
Provision for loan losses		418		—		418
Net interest income, after provision for loan losses		41,704		—		41,704
Non-interest income		16,973		13,621		30,594
Total income before non-interest expense		58,677		13,621		72,298
Depreciation and amortization expense		792		40		832
All other non-interest expense		38,786		7,987		46,773
Income before income taxes	$	19,099	$	5,594	$	24,693
Goodwill	$	24,191	$	—	$	24,191
Total assets		2,020,896		55,376		2,076,272