Segment Reporting

3 Months Ended

Mar. 31, 2024

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 three months ended March 31, 2024 and 2023.

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 for both of the three-month periods ended March 31, 2024 and 2023.

Information for the operating segments for the three month periods ended March 31, 2024 and 2023 are presented in the following tables:

		Three Months Ended
		March 31, 2024
				Trust and
		Community		Investment
(in thousands)		Banking		Services		Total
Interest income	$	21,898	$	-	$	21,898
Interest expense		8,086		-		8,086
Credit loss expense		946		-		946
Non-interest income		2,191		2,684		4,875
Non-interest expense		11,594		1,287		12,881
Income before income taxes and intercompany fees		3,463		1,397		4,860
Intercompany management fee income (expense)		3		(3)		-
Income before income taxes		3,466		1,394		4,860
Income tax expense		869		293		1,162
Net income	$	2,597	$	1,101	$	3,698
		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

Total non-fiduciary assets of the trust and investment services segment were $0.7 million (including $0.6 million in intangible assets) at both March 31, 2024 and December 31, 2023.  All other assets (including goodwill of $11.0 million as of both

March 31, 2024 and December 31, 2023 and other intangible assets of $0.4 million and $0.5 million as of March 31, 2024 and December 31, 2023, respectively) were held by the community banking segment.