Segment Reporting

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Reporting

Note 13. Segment Reporting

The Company has four reportable segments. Each reportable segment is a strategic business unit that offers different products and services. They are managed separately, because each segment appeals to different markets and, accordingly, require different technology and marketing strategies. The accounting policies of the segments are the same as those described in the summary of significant accounting policies provided earlier in this report.

The four reportable segments are:

•Bank - The commercial banking segment involves making loans and generating deposits from individuals, businesses and charitable organizations. Loan fee income, service charges from deposit accounts, and other non-interest-related fees, such as fees for debit cards and ATM usage and fees for treasury management services, generate additional income for the Bank segment.

•Sturman Wealth Advisors – Sturman Wealth Advisors, formerly known as VNB Investment Services, offers wealth management and investment advisory services. Revenue for this segment is generated primarily from investment advisory and financial planning fees, with a small and decreasing portion attributable to brokerage commissions.

•VNB Trust & Estate Services – VNB Trust & Estate Services offers corporate trustee services, trust and estate administration, IRA administration and custody services. Revenue for this segment is generated from administration, service and custody fees, as well as management fees that are derived from Assets Under Management. Investment management services currently are offered through in-house and third-party managers.

•Masonry Capital - Masonry Capital offers investment management services for separately managed accounts and a private investment fund employing a value-based, catalyst-driven investment strategy. Revenue for this segment is generated from management fees that are derived from Assets Under Management and incentive income that is based on the investment returns generated on performance-based Assets Under Management.

A management fee for administrative and technology support services provided by the Bank is allocated to the other three lines of business. For both the three months ended June 30, 2022 and 2021, management fees totaling $25 thousand were charged by the Bank and eliminated in consolidated totals. For both the six months ended June 30, 2022 and 2021, management fees totaling $50 thousand were charged by the Bank and eliminated in consolidated totals.

Segment information for the three and six months ended June 30, 2022 and 2021 is shown in the following tables (dollars in thousands). Note that asset information is not reported below, as the assets of Sturman Wealth Advisors and VNB Trust & Estate Services are reported at the Bank level; also, assets specifically allocated to the lines of business other than the Bank are insignificant and are no longer provided to the chief operating decision maker.

Three months ended June 30, 2022	Bank			Sturman Wealth Advisors		VNB Trust & Estate Services			Masonry Capital		Consolidated
Net interest income	$	12,461		$	-	$	-		$	-	$	12,461
Provision for (recovery of) loan losses		(217	)		-		-			-	$	(217	)
Noninterest income		2,851			210		365			220	$	3,646
Noninterest expense		8,717			161		376			188	$	9,442
Income (loss) before income taxes		6,812			49		(11	)		32		6,882
Provision for (benefit from) income    taxes		1,181			11		(2	)		7		1,197
Net income (loss)	$	5,631		$	38	$	(9	)	$	25	$	5,685
Six months ended June 30, 2022	Bank			Sturman Wealth Advisors		VNB Trust & Estate Services			Masonry Capital		Consolidated
Net interest income	$	23,886		$	-	$	-		$	-	$	23,886
Provision for (recovery of) loan losses		(69	)		-		-			-		(69	)
Noninterest income		4,385			426		3,196			426		8,433
Noninterest expense		17,538			327		1,298			374		19,537
Income before income taxes		10,802			99		1,898			52		12,851
Provision for income taxes		1,811			21		399			11		2,242
Net income	$	8,991		$	78	$	1,499		$	41	$	10,609

Three months ended June 30, 2021	Bank			Sturman Wealth Advisors		VNB Trust & Estate Services			Masonry Capital			Consolidated
Net interest income	$	13,151		$	-	$	-		$	-		$	13,151
Provision for (recovery of) loan losses		(141	)		-		-			-			(141	)
Noninterest income		2,356			202		203			159			2,920
Noninterest expense		15,416			167		215			195			15,993
Income (loss) before income taxes		232			35		(12	)		(36	)		219
Provision for (benefit from) income    taxes		75			7		(3	)		(7	)		72
Net income (loss)	$	157		$	28	$	(9	)	$	(29	)	$	147
Six months ended June 30, 2021	Bank			Sturman Wealth Advisors		VNB Trust & Estate Services			Masonry Capital			Consolidated
Net interest income	$	19,125		$	-	$	-		$	-		$	19,125
Provision for loan losses		210			-		-			-			210
Noninterest income		2,870			393		404			292			3,959
Noninterest expense		19,671			327		421			355			20,774
Income (loss) before income taxes		2,114			66		(17	)		(63	)		2,100
Provision for (benefit from) income    taxes		451			14		(4	)		(13	)		448
Net income (loss)	$	1,663		$	52	$	(13	)	$	(50	)	$	1,652