Segment Reporting

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

Note 11. Segment Reporting

The Company operates in a decentralized fashion in three principal business segments: the Bank, Wealth, and the Company (for purposes of this Note, the Parent). Revenues from the Bank’s operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Wealth’s operating revenues consist principally of income from fiduciary and asset management fees. The Parent’s revenues are mainly interest and dividends received from the Bank and Wealth. The Company has no other segments. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each segment appeals to different markets and, accordingly, requires different technologies and marketing strategies.

Information about reportable segments, and reconciliation of such information to the Consolidated Financial Statements as of and for the three months ended March 31, 2023 and 2022 follows:

	Three Months Ended March 31, 2023
(dollars in thousands)	Bank		Wealth		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	15,121	$	32	$	3,505		$	(3,505	)	$	15,153
Income from fiduciary activities		-		1,116		-			-			1,116
Other income		2,066		254		50			(65	)		2,305
Total operating income		17,187		1,402		3,555			(3,570	)		18,574
Expenses
Interest expense		2,045		-		295			-			2,340
Provision for credit losses		376		-		-			-			376
Salaries and employee benefits		6,085		1,074		204			-			7,363
Other expenses		4,481		304		85			(65	)		4,805
Total operating expenses		12,987		1,378		584			(65	)		14,884
Income before taxes		4,200		24		2,971			(3,505	)		3,690
Income tax expense (benefit)		713		6		(112	)		-			607
Net income	$	3,487	$	18	$	3,083		$	(3,505	)	$	3,083
Capital expenditures	$	130	$	-	$	-		$	-		$	130
Total assets	$	1,407,919	$	7,093	$	132,434		$	(131,295	)	$	1,416,151

	Three Months Ended March 31, 2022
(dollars in thousands)	Bank		Wealth		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	10,456	$	14	$	850		$	(850	)	$	10,470
Income from fiduciary activities		-		1,072		-			-			1,072
Other income		2,179		279		50			(65	)		2,443
Total operating income		12,635		1,365		900			(915	)		13,985
Expenses
Interest expense		538		-		295			-			833
Provision for loan losses		101		-		-			-			101
Salaries and employee benefits		5,429		848		145			-			6,422
Other expenses		3,888		294		174			(65	)		4,291
Total operating expenses		9,956		1,142		614			(65	)		11,647
Income before taxes		2,679		223		286			(850	)		2,338
Income tax expense (benefit)		377		48		(118	)		-			307
Net income	$	2,302	$	175	$	404		$	(850	)	$	2,031
Capital expenditures	$	197	$	-	$	-		$	-		$	197
Total assets	$	1,317,803	$	7,125	$	137,819		$	(137,362	)	$	1,325,385

The accounting policies of the segments are the same as those described in the summary of significant accounting policies reported in the Company’s 2022 Annual Report on Form 10-K. The Company evaluates performance based on profit or loss from operations before income taxes, not including nonrecurring gains or losses.