Segment Reporting

3 Months Ended

Mar. 31, 2025

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, 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 three months ended March 31, 2025 and 2024 follows:

	Three Months Ended March 31, 2025
(dollars in thousands)	Bank		Wealth		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	17,256	$	47	$	1,250		$	(1,250	)	$	17,303
Income from fiduciary activities		-		1,373		-			(41	)		1,332
Other income		2,282		248		50			(65	)		2,515
Total operating income		19,538		1,668		1,300			(1,356	)		21,150
Expenses
Interest expense		4,993		-		302			-			5,295
Provision for credit losses		717		-		-			-			717
Salaries and employee benefits		6,087		1,055		242			(41	)		7,343
Data processing		1,193		127		15			(2	)		1,333
Customer development		124		10		-			-			134
Occupancy and equipment		1,130		51		-			-			1,181
Other expenses		1,999		135		386			(64	)		2,456
Total operating expenses		16,243		1,378		945			(107	)		18,459
Income before taxes		3,295		290		355			(1,249	)		2,691
Income tax expense (benefit)		483		62		(12	)		-			533
Net income	$	2,812	$	228	$	367		$	(1,249	)	$	2,158
Capital expenditures	$	166	$	-	$	-		$	-		$	166
Total assets	$	1,444,233	$	6,798	$	145,447		$	(145,490	)	$	1,450,988

	Three Months Ended March 31, 2024
(dollars in thousands)	Bank		Wealth		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	17,341	$	42	$	800		$	(800	)	$	17,383
Income from fiduciary activities		-		1,217		-			(25	)		1,192
Other income		1,834		211		50			(65	)		2,030
Total operating income		19,175		1,470		850			(890	)		20,605
Expenses
Interest expense		5,548		-		295			-			5,843
Provision for credit losses		80		-		-			-			80
Salaries and employee benefits		6,641		1,024		191			(25	)		7,831
Data processing		1,138		165		14			(2	)		1,315
Customer development		46		8		-			1			55
Occupancy and equipment		1,122		53		-			(2	)		1,173
Other expenses		2,179		172		40			(62	)		2,329
Total operating expenses		16,754		1,422		540			(90	)		18,626
Income before taxes		2,421		48		310			(800	)		1,979
Income tax expense (benefit)		353		12		(103	)		-			262
Net income	$	2,068	$	36	$	413		$	(800	)	$	1,717
Capital expenditures	$	799	$	-	$	-		$	-		$	799
Total assets	$	1,436,417	$	7,250	$	137,600		$	(135,778	)	$	1,445,489

The accounting policies of the segments are the same as those described in the summary of significant accounting policies reported in the Company’s 2024 Form 10-K. The Company evaluates performance based on profit or loss from operations before income taxes, not including nonrecurring gains or losses.