Segment Reporting

6 Months Ended

Jun. 30, 2024

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 six months ended June 30, 2024 and 2023 follows:

	Three Months Ended June 30, 2024
(dollars in thousands)	Bank		Wealth		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	18,069	$	49	$	4,321		$	(4,321	)	$	18,118
Income from fiduciary activities		-		1,179		-			(50	)		1,129
Other income		2,158		236		50			(102	)		2,342
Total operating income		20,227		1,464		4,371			(4,473	)		21,589
Expenses
Interest expense		5,707		-		295			-			6,002
Provision for credit losses		261		-		-			-			261
Salaries and employee benefits		6,159		887		199			(50	)		7,195
Other expenses		4,720		337		174			(102	)		5,129
Total operating expenses		16,847		1,224		668			(152	)		18,587
Income (loss) before taxes		3,380		240		3,703			(4,321	)		3,002
Income tax expense (benefit)		552		51		(130	)		-			473
Net income (loss)	$	2,828	$	189	$	3,833		$	(4,321	)	$	2,529
Capital expenditures	$	1,152	$	-	$	-		$	-		$	1,152

	Three Months Ended June 30, 2023
(dollars in thousands)	Bank		Wealth			Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	16,312	$	35		$	2,296		$	(2,296	)	$	16,347
Income from fiduciary activities		-		1,154			-			-			1,154
Other income		2,139		200			50			(66	)		2,323
Total operating income		18,451		1,389			2,346			(2,362	)		19,824
Expenses
Interest expense		3,953		-			295			-			4,248
Provision for credit losses		361		-			-			-			361
Salaries and employee benefits		6,745		1,099			199			-			8,043
Other expenses		4,648		341			181			(66	)		5,104
Total operating expenses		15,707		1,440			675			(66	)		17,756
Income (loss) before taxes		2,744		(51	)		1,671			(2,296	)		2,068
Income tax expense (benefit)		406		(9	)		(131	)		-			266
Net income (loss)	$	2,338	$	(42	)	$	1,802		$	(2,296	)	$	1,802
Capital expenditures	$	357	$	-		$	-		$	-		$	357

	Six Months Ended June 30, 2024
(dollars in thousands)	Bank		Wealth		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	35,410	$	91	$	5,121		$	(5,121	)	$	35,501
Income from fiduciary activities		-		2,396		-			(75	)		2,321
Other income		3,992		447		100			(167	)		4,372
Total operating income		39,402		2,934		5,221			(5,363	)		42,194
Expenses
Interest expense		11,255		-		590			-			11,845
Provision for credit losses		341		-		-			-			341
Salaries and employee benefits		12,800		1,911		390			(75	)		15,026
Other expenses		9,205		735		228			(167	)		10,001
Total operating expenses		33,601		2,646		1,208			(242	)		37,213
Income (loss) before taxes		5,801		288		4,013			(5,121	)		4,981
Income tax expense (benefit)		905		63		(233	)		-			735
Net income (loss)	$	4,896	$	225	$	4,246		$	(5,121	)	$	4,246
Capital expenditures	$	1,951	$	-	$	-		$	-		$	1,951

	Six Months Ended June 30, 2023
(dollars in thousands)	Bank		Wealth			Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	31,433	$	67		$	5,801		$	(5,801	)	$	31,500
Income from fiduciary activities		-		2,270			-			-			2,270
Other income		4,205		454			100			(131	)		4,628
Total operating income		35,638		2,791			5,901			(5,932	)		38,398
Expenses
Interest expense		5,998		-			590			-			6,588
Provision for credit losses		737		-			-			-			737
Salaries and employee benefits		12,830		2,173			403			-			15,406
Other expenses		9,129		645			266			(131	)		9,909
Total operating expenses		28,694		2,818			1,259			(131	)		32,640
Income (loss) before taxes		6,944		(27	)		4,642			(5,801	)		5,758
Income tax expense (benefit)		1,119		(3	)		(243	)		-			873
Net income (loss)	$	5,825	$	(24	)	$	4,885		$	(5,801	)	$	4,885
Capital expenditures	$	487	$	-		$	-		$	-		$	487

(dollars in thousands)	Bank		Wealth		Parent		Eliminations			Consolidated
Total assets at June 30,2024	$	1,414,168	$	7,481	$	140,287	$	(138,582	)	$	1,423,354
Total assets at December 31, 2023	$	1,437,603	$	7,235	$	137,004	$	(135,460	)	$	1,446,382

The accounting policies of the segments are the same as those described in the summary of significant accounting policies reported in the Company’s 2023 Form 10-K. The Company evaluates performance based on profit or loss from operations before income taxes, not including nonrecurring gains or losses.