Segment Reporting

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 2023 and 2022 follows:

	Three Months Ended September 30, 2023
(dollars in thousands)	Bank		Wealth			Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	17,154	$	35		$	1,821		$	(1,821	)	$	17,189
Income from fiduciary activities		-		1,012			-			-			1,012
Other income		2,215		270			50			(65	)		2,470
Total operating income		19,369		1,317			1,871			(1,886	)		20,671
Expenses
Interest expense		5,468		-			295			-			5,763
Provision for credit losses		505		-			-			-			505
Salaries and employee benefits		6,589		1,018			223			-			7,830
Other expenses		4,657		347			112			(65	)		5,051
Total operating expenses		17,219		1,365			630			(65	)		19,149
Income (loss) before taxes		2,150		(48	)		1,241			(1,821	)		1,522
Income tax expense (benefit)		290		(9	)		(121	)		-			160
Net income (loss)	$	1,860	$	(39	)	$	1,362		$	(1,821	)	$	1,362
Capital expenditures	$	398	$	-		$	-		$	-		$	398
Total assets	$	1,438,599	$	6,997		$	129,495		$	(128,028	)	$	1,447,063

	Three Months Ended September 30, 2022
(dollars in thousands)	Bank		Wealth		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	12,347	$	21	$	2,968		$	(2,968	)	$	12,368
Income from fiduciary activities		-		953		-			-			953
Other income		2,085		342		50			(65	)		2,412
Total operating income		14,432		1,316		3,018			(3,033	)		15,733
Expenses
Interest expense		502		-		295			-			797
Provision for credit losses		402		-		-			-			402
Salaries and employee benefits		5,733		902		186			-			6,821
Other expenses		4,413		288		108			(65	)		4,744
Total operating expenses		11,050		1,190		589			(65	)		12,764
Income before taxes		3,382		126		2,429			(2,968	)		2,969
Income tax expense (benefit)		514		27		(114	)		-			427
Net income	$	2,868	$	99	$	2,543		$	(2,968	)	$	2,542
Capital expenditures	$	355	$	13	$	-		$	-		$	368
Total assets	$	1,308,759	$	7,163	$	123,327		$	(122,243	)	$	1,317,006

	Nine Months Ended September 30, 2023
(dollars in thousands)	Bank		Wealth			Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	48,587	$	102		$	7,622		$	(7,622	)	$	48,689
Income from fiduciary activities		-		3,282			-			-			3,282
Other income		6,420		724			150			(196	)		7,098
Total operating income		55,007		4,108			7,772			(7,818	)		59,069
Expenses
Interest expense		11,466		-			885			-			12,351
Provision for credit losses		1,242		-			-			-			1,242
Salaries and employee benefits		19,419		3,191			626			-			23,236
Other expenses		13,786		992			378			(196	)		14,960
Total operating expenses		45,913		4,183			1,889			(196	)		51,789
Income (loss) before taxes		9,094		(75	)		5,883			(7,622	)		7,280
Income tax expense (benefit)		1,409		(12	)		(364	)		-			1,033
Net income (loss)	$	7,685	$	(63	)	$	6,247		$	(7,622	)	$	6,247
Capital expenditures	$	885	$	-		$	-		$	-		$	885
Total assets	$	1,438,599	$	6,997		$	129,495		$	(128,028	)	$	1,447,063

	Nine Months Ended September 30, 2022
(dollars in thousands)	Bank		Wealth		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	33,871	$	52	$	7,826		$	(7,826	)	$	33,923
Income from fiduciary activities		-		3,086		-			-			3,086
Other income		6,394		946		150			(196	)		7,294
Total operating income		40,265		4,084		7,976			(8,022	)		44,303
Expenses
Interest expense		1,509		-		885			-			2,394
Provision for credit losses		1,073		-		-			-			1,073
Salaries and employee benefits		16,704		2,643		507			-			19,854
Other expenses		12,363		867		480			(196	)		13,514
Total operating expenses		31,649		3,510		1,872			(196	)		36,835
Income before taxes		8,616		574		6,104			(7,826	)		7,468
Income tax expense (benefit)		1,243		122		(362	)		-			1,003
Net income	$	7,373	$	452	$	6,466		$	(7,826	)	$	6,465
Capital expenditures	$	956	$	13	$	-		$	-		$	969
Total assets	$	1,308,759	$	7,163	$	123,327		$	(122,243	)	$	1,317,006

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 Form 10-K. The Company evaluates performance based on profit or loss from operations before income taxes, not including nonrecurring gains or losses.