Note 22 - Segments

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(22) 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 June 30, 2024, 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. 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:

	Three months ended June 30, 2024						Three months ended June 30, 2023
(in thousands)	Commercial Banking		WM&T		Total		Commercial Banking		WM&T		Total
Net interest income	$	61,790	$	232	$	62,022	$	60,796	$	133	$	60,929
Provision for credit losses		1,300		—		1,300		2,350		—		2,350
Wealth management and trust services		—		10,795		10,795		—		10,146		10,146
All other non-interest income		12,860		—		12,860		12,714		—		12,714
Non-interest expenses		42,629		6,480		49,109		39,877		5,923		45,800
Income before income tax expense		30,721		4,547		35,268		31,283		4,356		35,639
Income tax expense		6,683		987		7,670		7,030		945		7,975
Net income	$	24,038	$	3,560	$	27,598	$	24,253	$	3,411	$	27,664
Segment assets	$	8,280,324	$	35,001	$	8,315,325	$	7,696,386	$	36,166	$	7,732,552

	Six months ended June 30, 2024						Six months ended June 30, 2023
(dollars in thousands)	Commercial Banking		WM&T		Total		Commercial Banking		WM&T		Total
Net interest income	$	121,584	$	508	$	122,092	$	123,740	$	261	$	124,001
Provision for credit losses		2,725		—		2,725		4,975		—		4,975
Wealth management and trust services		—		21,566		21,566		—		19,673		19,673
All other non-interest income		25,360		—		25,360		25,234		—		25,234
Non-interest expenses		85,608		12,462		98,070		79,477		11,637		91,114
Income before income tax expense		58,611		9,612		68,223		64,522		8,297		72,819
Income tax expense		12,652		2,086		14,738		14,307		1,800		16,107
Net income	$	45,959	$	7,526	$	53,485	$	50,215	$	6,497	$	56,712
Segment assets		8,280,324	$	35,001	$	8,315,325	$	7,696,386	$	36,166	$	7,732,552