Segment Reporting

12 Months Ended

Dec. 31, 2024

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, fees earned on deposit accounts, debit card interchange, and treasury and commercial services. 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.

The Company’s segment structure reflects the financial information and reports used by our chief operating decision maker to make decisions regarding the business, including resource allocations and performance. Our Chief Executive Officer is the CODM. We evaluate performance and allocate resources based on the operating income of each operating segment. The CODM uses segment operating income in the annual budget process. The operating income of each operating segment includes the revenues of the segment less expenses that are directly related to those revenues.

Information about reportable segments, and reconciliation of such information to the Consolidated Financial Statements as of and for the years ended December 31 2024 and 2023 follows:

	Year Ended December 31, 2024
(dollars in thousands)	Bank		Wealth		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	72,209	$	198	$	11,273		$	(11,273	)	$	72,407
Income from fiduciary activities		-		4,952		-			(293	)		4,659
Other income		7,934		878		200			(262	)		8,750
Total operating income		80,143		6,028		11,473			(11,828	)		85,816
Expenses
Interest expense		23,008		-		1,181			-			24,189
Provision for credit losses		713		-		-			-			713
Salaries and employee benefits		25,559		3,969		813			(293	)		30,048
Data processing		4,538		587		56			(6	)		5,175
Customer development		425		48		-			-			473
Occupancy and equipment		4,611		216		-			-			4,827
Other expenses		8,344		534		365			(257	)		8,986
Total operating expenses		67,198		5,354		2,415			(556	)		74,411
Income (loss) before taxes		12,945		674		9,058			(11,272	)		11,405
Income tax expense (benefit)		2,193		154		(450	)		-			1,897
Net income	$	10,752	$	520	$	9,508		$	(11,272	)	$	9,508
Capital expenditures	$	1,411	$	-	$	-		$	-		$	1,411
Total assets	$	1,444,009	$	6,770	$	146,372		$	(146,581	)	$	1,450,570

	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
Data processing		4,508		453		55			(6	)		5,010
Customer development		501		47		-			-			548
Occupancy and equipment		4,602		287		-			-			4,889
Other expenses		8,836		557		394			(256	)		9,531
Total operating expenses		63,820		5,482		2,395			(262	)		71,435
Income 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

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.