Segment Information

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Information

11.Segment Information

The Bank has two reportable segments: traditional banking and mortgage banking. Revenues from traditional banking operations consist primarily of interest and fees earned on loans held for investment 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 mortgage loan origination fee income. Segment performance is primarily evaluated using operating revenue. Income taxes are allocated, and material indirect expenses are allocated by volume. Mortgage banking is an internal division of Fidelity Bank and not a separate legal entity. Information reported internally for performance assessment follows for the nine months ended September 30, 2024 and September 30, 2023:

			Mortgage			Total
	Banking		Banking			Segments
September 30, 2024
Net Interest income	$	30,841	$	2,400		$	33,241
Gain on sale of mortgage loans		—		10,706			10,706
Other revenue		3,284		3,357			6,641
Total operating revenue	$	34,125	$	16,463		$	50,588
Salaries and employee benefits	$	17,952	$	13,263		$	31,215
Mortgage servicing rights amortization		—		397			397
Hedging activity, net		—		581			581
Provision for credit losses and other expenses		14,579		4,903			19,482
Income tax expense (benefit)		299		(533	)		(234	)
Total expenses	$	32,830	$	18,611		$	51,441
Segment profit (loss)	$	1,295	$	(2,148	)	$	(853	)
Segment assets	$	1,354,288	$	53,392		$	1,407,680
September 30, 2023
Net Interest income	$	30,258	$	2,886		$	33,144
Gain on sale of mortgage loans		—		9,932			9,932
Other revenue		3,208		7,368			10,576
Total operating revenue	$	33,466	$	20,186		$	53,652
Salaries and employee benefits	$	16,079	$	15,540		$	31,619
Mortgage servicing rights amortization		—		1,574			1,574
Hedging activity, net		—		(369	)		(369	)
Provision for credit losses and other expenses		13,022		5,147			18,169
Income tax expense (benefit)		727		(368	)		359
Total expenses	$	29,828	$	21,524		$	51,352
Segment profit (loss)	$	3,638	$	(1,338	)	$	2,300
Segment assets	$	1,052,234	$	41,859		$	1,094,093