Segment Reporting

6 Months Ended

Jun. 30, 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 (CODM) 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 and six months ended June 30, 2025 and 2024 follows:

	Three Months Ended June 30, 2025
(dollars in thousands)	Bank		Wealth		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	17,525	$	50	$	3,702		$	(3,703	)	$	17,574
Income from fiduciary activities		-		1,299		-			(26	)		1,273
Other income		1,448		222		50			256			1,976
Total operating income		18,973		1,571		3,752			(3,473	)		20,823
Expenses
Interest expense		5,094		-		301			-			5,395
Provision for credit losses		468		-		-			-			468
Salaries and employee benefits		6,191		1,114		220			(26	)		7,499
Data processing		1,276		126		14			-			1,416
Customer development		121		13		-			-			134
Occupancy and equipment		1,045		49		-			-			1,094
Other expenses		2,509		127		986			(401	)		3,221
Total operating expenses		16,704		1,429		1,521			(427	)		19,227
Income before taxes		2,269		142		2,231			(3,046	)		1,596
Income tax expense (benefit)		470		29		(145	)		-			354
Net income (loss)	$	1,799	$	113	$	2,376		$	(3,046	)	$	1,242
Capital expenditures	$	157	$	-	$	-		$	-		$	157
Total assets	$	1,395,312	$	6,698	$	146,904		$	(146,387	)	$	1,402,527

	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
Data processing		1,226		155		14			(2	)		1,393
Customer development		166		10		-			-			176
Occupancy and equipment		1,314		58		-			1			1,373
Other expenses		2,014		114		160			(101	)		2,187
Total operating expenses		16,847		1,224		668			(152	)		18,587
Income 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
Total assets	$	1,414,168	$	7,481	$	140,287		$	(138,582	)	$	1,423,354

	Six Months Ended June 30, 2025
(dollars in thousands)	Bank		Wealth		Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	34,781	$	97	$	4,952		$	(4,953	)	$	34,877
Income from fiduciary activities		-		2,672		-			(67	)		2,605
Other income		3,730		470		100			191			4,491
Total operating income		38,511		3,239		5,052			(4,829	)		41,973
Expenses
Interest expense		10,087		-		603			-			10,690
Provision for credit losses		1,185		-		-			-			1,185
Salaries and employee benefits		12,278		2,169		462			(67	)		14,842
Data processing		2,469		253		29			(2	)		2,749
Customer development		245		23		-			-			268
Occupancy and equipment		2,175		100		-			-			2,275
Other expenses		4,508		262		1,372			(465	)		5,677
Total operating expenses		32,947		2,807		2,466			(534	)		37,686
Income before taxes		5,564		432		2,586			(4,295	)		4,287
Income tax expense (benefit)		953		91		(157	)		-			887
Net income (loss)	$	4,611	$	341	$	2,743		$	(4,295	)	$	3,400
Capital expenditures	$	323	$	-	$	-		$	-		$	323
Total assets	$	1,395,312	$	6,698	$	146,904		$	(146,387	)	$	1,402,527

	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
Data processing		2,363		320		27			(2	)		2,708
Customer development		212		18		-			1			231
Occupancy and equipment		2,435		111		-			-			2,546
Other expenses		4,195		286		201			(166	)		4,516
Total operating expenses		33,601		2,646		1,208			(242	)		37,213
Income 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
Total assets	$	1,414,168	$	7,481	$	140,287		$	(138,582	)	$	1,423,354

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.