Note 28 - Segments

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(28) Segments

Bancorp’s principal activities include commercial banking and WM&T. Commercial banking provides a full range of loan and deposit products to individual consumers and businesses. Commercial banking also includes Bancorp’s mortgage banking and investment products sales activity. WM&T provides investment management, financial & retirement planning and trust & estate services, as well as retirement plan management for businesses and corporations in all markets in which Bancorp operates. The magnitude of WM&T revenue distinguishes Bancorp from other community banks of similar asset size.

Financial information for each business segment reflects that which is specifically identifiable or allocated based on an internal allocation method. Income taxes are allocated based on the effective federal income tax rate adjusted for any tax-exempt activity. All tax-exempt activity and provision have been allocated fully to the commercial banking segment. Measurement of performance of business segments is based on the management structure of Bancorp and is not necessarily comparable with similar information for any other financial institution. Information presented is also not necessarily indicative of the segments’ operations if they were independent entities.

The majority of the net assets of Bancorp are involved in the commercial banking segment. As of December 31, 2023, goodwill totaling $194 million was recorded on Bancorp’s consolidated balance sheets, of which $172 million is attributed to the commercial banking segment and $22 million is attributed to WM&T. The portion of total goodwill attributed to WM&T relates entirely to the CB acquisition, which generated $67 million in total goodwill, $8.5 million of which was subsequently written off as a result of Bancorp selling its interest in LFA effective December 31, 2022. With the exception of goodwill attributed to WM&T through the CB acquisition, assets assigned to WM&T consist primarily of a CLI asset associated with the WM&T business added through the CB acquisition, net premises and equipment and a receivable related to fees earned that have not been collected.

Selected financial information by business segment follows:

	Commercial
As of and for the Year ended December 31, 2023 (in thousands)	Banking		WM&T		Total
Net interest income	$	246,624	$	708	$	247,332
Provision for credit losses		13,796		—		13,796
Wealth management and trust services		—		39,802		39,802
All other non-interest income		52,418		—		52,418
Non-interest expenses		163,316		24,513		187,829
Income before income tax expense		121,930		15,997		137,927
Income tax expense		26,708		3,471		30,179
Net income	$	95,222	$	12,526	$	107,748
Total assets	$	8,134,923	$	35,179	$	8,170,102

	Commercial
As of and for the Year ended December 31, 2022 (in thousands)	Banking		WM&T		Total
Net interest income	$	232,971	$	412	$	233,383
Provision for credit losses		10,257		—		10,257
Wealth management and trust services		—		36,111		36,111
All other non-interest income		53,038		—		53,038
Non-interest expenses		170,348		21,443		191,791
Income before income tax expense		105,404		15,080		120,484
Income tax expense		23,917		3,273		27,190
Net income		81,487		11,807		93,294
Less net income attributable to NCI		322		-		322
Net income available to stockholders	$	81,165	$	11,807	$	92,972
Total assets	$	7,459,312	$	36,949	$	7,496,261

	Commercial
As of and for the Year ended December 31, 2021 (in thousands)	Banking			WM&T		Total
Net interest income	$	170,775		$	299	$	171,074
Provision for credit losses		(753	)		—		(753	)
Wealth management and trust services		—			27,613		27,613
All other non-interest income		38,237			—		38,237
Non-interest expenses		128,091			14,189		142,280
Income before income tax expense		81,674			13,723		95,397
Income tax expense		17,774			2,978		20,752
Net income	$	63,900		$	10,745	$	74,645
Total assets	$	6,641,916		$	4,109	$	6,646,025