Segment Reporting

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Reporting

Note 13 – Segment Reporting

Currently, the Corporation 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 six and three months ended June 30, 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 $104,000 for both of the six month periods ended June 30, 2023 and 2022 and $52,000 for both of the three month periods ended June 30, 2023 and 2022.

Information for the operating segments for the six and three month periods ended June 30, 2023 are presented in the following tables:

		Six Months Ended
		June 30, 2023
				Trust and
		Community		Investment
(in thousands)		Banking		Services		Total
Interest income	$	37,801	$	-	$	37,801
Interest expense		9,109		-		9,109
Credit loss expense		938		-		938
Non-interest income		4,411		4,551		8,962
Non-interest expense		22,562		2,587		25,149
Income before income taxes and intercompany fees		9,603		1,964		11,567
Intercompany management fee income (expense)		6		(6)		-
Income before income taxes		9,609		1,958		11,567
Income tax expense		2,367		411		2,778
Net income	$	7,242	$	1,547	$	8,789
		Six months ended
		June 30, 2022
				Trust and
		Community		Investment
(in thousands)		Banking		Services		Total
Interest income	$	28,878	$	-	$	28,878
Interest expense		1,566		-		1,566
Credit for loan losses		210		-		210
Non-interest income		4,094		4,766		8,860
Non-interest expense		18,805		2,405		21,210
Income before income taxes and intercompany fees		12,391		2,361		14,752
Intercompany management fee income (expense)		6		(6)		-
Income before income taxes		12,397		2,355		14,752
Income tax expense		3,115		494		3,609
Net income	$	9,282	$	1,861	$	11,143

		Three Months Ended
		June 30, 2023
				Trust and
		Community		Investment
(in thousands)		Banking		Services		Total
Interest income	$	19,972	$	-	$	19,972
Interest expense		5,798		-		5,798
Credit loss expense		395		-		395
Non-interest income		2,285		2,284		4,569
Non-interest expense		11,177		1,334		12,511
Income before income taxes and intercompany fees		4,887		950		5,837
Intercompany management fee income (expense)		3		(3)		-
Income before income taxes		4,890		947		5,837
Income tax expense		1,224		199		1,423
Net income	$	3,666	$	748	$	4,414
		Three Months Ended
		June 30, 2022
				Trust and
		Community		Investment
(in thousands)		Banking		Services		Total
Interest income	$	14,731	$	-	$	14,731
Interest expense		760		-		760
Credit for loan losses		631		-		631
Non-interest income		2,069		2,357		4,426
Non-interest expense		9,427		1,203		10,630
Income before income taxes and intercompany fees		5,982		1,154		7,136
Intercompany management fee income (expense)		3		(3)		-
Income before income taxes		5,985		1,151		7,136
Income tax expense		1,467		241		1,708
Net income	$	4,518	$	910	$	5,428

Total non-fiduciary assets of the trust and investment services segment were $0.8 million (including $0.7 million in intangible assets) as of June 30, 2023 and $0.9 million (including $0.8 million in intangible assets) as of December 31, 2022.