Segment Reporting

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

Note 16. 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 years ended December 31 2023 and 2022 follows:

	Year Ended December 31, 2023
(dollars in thousands)	Bank		Wealth		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	66,484	$	142	$	9,462		$	(9,462	)	$	66,626
Income from fiduciary activities		-		4,632		-			-			4,632
Other income		8,390		913		200			(262	)		9,241
Total operating income		74,874		5,687		9,662			(9,724	)		80,499
Expenses
Interest expense		17,246		-		1,181			-			18,427
Provision for credit losses		2,601		-		-			-			2,601
Salaries and employee benefits		25,526		4,138		765			-			30,429
Other expenses		18,447		1,344		449			(262	)		19,978
Total operating expenses		63,820		5,482		2,395			(262	)		71,435
Income (loss) before taxes		11,054		205		7,267			(9,462	)		9,064
Income tax expense (benefit)		1,754		43		(463	)		-			1,334
Net income	$	9,300	$	162	$	7,730		$	(9,462	)	$	7,730
Capital expenditures	$	1,053	$	-	$	-		$	-		$	1,053
Total assets	$	1,437,603	$	7,235	$	137,004		$	(135,460	)	$	1,446,382

	Year Ended December 31, 2022
(dollars in thousands)	Bank		Wealth		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	47,963	$	80	$	10,873		$	(10,873	)	$	48,043
Income from fiduciary activities		-		4,097		-			-			4,097
Other income		8,307		1,162		200			(261	)		9,408
Total operating income		56,270		5,339		11,073			(11,134	)		61,548
Expenses
Interest expense		2,424		-		1,181			-			3,605
Provision for credit losses		1,706		-		-			-			1,706
Salaries and employee benefits		22,751		3,613		691			-			27,055
Other expenses		17,135		1,164		562			(261	)		18,600
Total operating expenses		44,016		4,777		2,434			(261	)		50,966
Income before taxes		12,254		562		8,639			(10,873	)		10,582
Income tax expense (benefit)		1,822		121		(469	)		-			1,474
Net income	$	10,432	$	441	$	9,108		$	(10,873	)	$	9,108
Capital expenditures	$	1,341	$	13	$	-		$	-		$	1,354
Total assets	$	1,347,151	$	7,048	$	128,849		$	(127,713	)	$	1,355,335

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on profit or loss from operations before income taxes not including nonrecurring gains or losses.

Both the Parent and Wealth maintain deposit accounts with the Bank, on terms substantially similar to those available to other customers. These transactions are eliminated to reach consolidated totals.

The Company operates in one geographical area and does not have a single external customer from which it derives 10 percent or more of its revenues.