Segment Reporting

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

22. 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 years  ended December 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 $208,000 for the years ending December 31, 2023 and 2022.

Information for the operating segments for the years ended December 31, 2023 and 2022 are presented in the following tables:

		December 31, 2023
			Trust and
	Community		Investment
(in thousands)	Banking		Services		Total
Interest income	$	81,156	$	—	$	81,156
Interest expense		24,286		—		24,286
Credit loss expense		1,620		—		1,620
Non-interest income		5,027		9,442		14,469
Non-interest expense		45,098		5,145		50,243
Income before income taxes and intercompany fees		15,179		4,297		19,476
Intercompany management fee income (expense)		12		(12)		—
Income before income taxes		15,191		4,285		19,476
Income tax expense		3,514		902		4,416
Net income	$	11,677	$	3,383	$	15,060
		December 31, 2022
			Trust and
	Community		Investment
(in thousands)	Banking		Services		Total
Interest income	$	62,422	$	—	$	62,422
Interest expense		4,789		—		4,789
Loan loss credit		(627)		—		(627)
Non-interest income		8,757		9,293		18,050
Non-interest expense		38,435		4,694		43,129
Income before income taxes and intercompany fees		28,582		4,599		33,181
Intercompany management fee income (expense)		12		(12)		—
Income before income taxes		28,594		4,587		33,181
Income tax expense		7,168		965		8,133
Net income	$	21,426	$	3,622	$	25,048

Total non-fiduciary assets of the trust and investment services segment were $0.7 million (including $0.6 million in intangible assets) at December 31, 2023 and $0.9 million (including $0.8 million in intangible assets) at December 31, 2022.  All other assets (including goodwill of $11.0 million as of December 31 2023 and 2022 and other intangible assets of $0.5 million and $0.6 million as of December 31, 2023 and 2022, respectively) were held by the community banking segment.