Segment Reporting

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

Note 14 – Segment Reporting

Currently, the Company conducts business in two operating segments:  (i) Community Banking and (ii) Trust and Investment Services.  The accounting policies of the segments are the same as those described in the summary of significant accounting policies provided earlier in this report.

Business activity for the operating segments are as follows:

Community Banking:  The Community Banking segment is conducted through the Bank and involves delivering a broad range of financial products and services, including various loan and deposit products, to consumer, business, and not-for-profit customers.  Parent company income and assets are included in the Community Banking segment, as the majority of parent company functions are related to this segment.  Major revenue sources include net interest income, gains on sales of mortgage loans, and service charges on deposit accounts.  Expenses include personnel, occupancy, marketing, equipment, and other expenses.  Non-cash charges other than depreciation of fixed assets were immaterial for the three months ended March 31, 2023 and 2022.

Trust and Investment Services:  The Trust and Investment Services segment is conducted through the Bank and offers corporate trustee services, trust and estate administration, IRA administration and custody services.  Revenues for this segment is generated from administration, service and custody fees, as well as management fees that are derived from Assets Under Management.  Expenses include personnel, occupancy, marketing, equipment, and other expenses.   Non-cash charges associated with amortization of intangibles were approximately $52,000 thousand for the three months ended March 31, 2023 and 2022.

Information for the operating segments for the periods indicated are presented in the following tables:

		Three Months Ended
		March 31, 2023
				Trust and
		Community		Investment
(in thousands)		Banking		Services		Total
Interest income	$	17,829	$	-	$	17,829
Interest expense		3,311		-		3,311
Credit loss expense		543		-		543
Non-interest income		2,125		2,268		4,393
Non-interest expense		11,385		1,253		12,638
Income before income taxes and intercompany fees		4,715		1,015		5,730
Intercompany management fee income (expense)		3		(3)		-
Income before income taxes		4,718		1,012		5,730
Income tax expense		1,143		212		1,355
Net income	$	3,575	$	800	$	4,375
		Three Months Ended
		March 31, 2022
				Trust and
		Community		Investment
(in thousands)		Banking		Services		Total
Interest income	$	14,147	$	-	$	14,147
Interest expense		806		-		806
Credit for loan losses		(421)		-		(421)
Non-interest income		2,025		2,409		4,434
Non-interest expense		9,377		1,203		10,580
Income before income taxes and intercompany fees		6,410		1,206		7,616
Intercompany management fee income (expense)		3		(3)		-
Income before income taxes		6,413		1,203		7,616
Income tax expense		1,647		254		1,901
Net income	$	4,766	$	949	$	5,715

Total non-fiduciary assets of the trust and investment services segment were $0.9 million (including $0.8 million in intangible assets) as of March 31, 2023 and $1.1 million (including $1.0 million in intangible assets) as of March 31, 2022.  All other assets were allocated to the Community Banking segment.