Segment Information

12 Months Ended

Dec. 31, 2023

Segment Information [Abstract]

Segment Information

19.SEGMENT INFORMATION

For the first eleven months of 2023 the Company was comprised of two primary business segments: banking activities and insurance agency activities. On November 30, 2023 the Company sold significantly all of the assets of the insurance agency to Gallagher, and ceased insurance related activities for the Company. As a result of the sale, insurance revenue and expenses reported within this Annual Report on Form 10-K reflect the first eleven months of 2023. The pre-tax gain on the sale of $20.2 million which includes all associated expenses relating to the sale was recognized during the fourth quarter of 2023 and had a $6.6 million of an increase in tax expense. In addition, the Company wrote off $11.7 million of goodwill and intangibles, and $1.9 million of other asset and liabilities due to the sale of TEA. See Note 2 to the Company’s Consolidated Financial Statements included under Item 8 of this Annual Report on Form 10-K for more information on the sale of TEA.

Prior to the sale, insurance agency activities included the selling of various premium-based insurance policies on a commission basis, including business and personal insurance, employee benefits, surety bonds, risk management, life, disability and long-term care coverage, as well as providing claims adjusting services to various insurance companies.

The banking business segment includes both commercial and consumer banking services, including a wide array of lending and depository services as well as offering non-deposit investment products, such as annuities and mutual funds. All sources of segment specific revenues and expenses contributed to management’s definition of net income.

Revenues from transactions between the two segments were not significant. The operating segments were separately managed, and their performance was evaluated based on net income.

‎

The following tables set forth information regarding these segments for the years ended December 31, 2023, 2022, and 2021.

	2023
		Banking		Insurance Agency
		Activities		Activities		Total
		(in thousands)
Net interest income	$	61,208	$	-	$	61,208
Provision for credit losses		18		-		18
Net interest income after
provision for credit losses		61,190		-		61,190
Insurance service and fees		550		9,711		10,261
Gain on sale of insurance agency		-		20,160		20,160
Loss on sale of securities		(5,044)		-		(5,044)
Other non-interest income		7,545		-		7,545
Amortization expense		17		350		367
Other non-interest expense		52,644		6,371		59,015
Income before income taxes		11,580		23,150		34,730
Income tax provision		2,799		7,407		10,206
Net income	$	8,781	$	15,743	$	24,524

	2022
		Banking		Insurance Agency
		Activities		Activities		Total
		(in thousands)
Net interest income	$	72,955	$	-	$	72,955
Provision for credit losses		2,739		-		2,739
Net interest income after
provision for credit losses		70,216		-		70,216
Insurance service and fees		616		9,837		10,453
Other non-interest income		8,818		-		8,818
Amortization expense		19		381		400
Other non-interest expense		52,119		7,416		59,535
Income before income taxes		27,512		2,040		29,552
Income tax provision		6,636		527		7,163
Net income	$	20,876	$	1,513	$	22,389

	2021
		Banking		Insurance Agency
		Activities		Activities		Total
		(in thousands)
Net interest income	$	72,785	$	-	$	72,785
(Credit) Provision for credit losses		(1,513)		-		(1,513)
Net interest income after
credit for loan losses		74,298		-		74,298
Insurance service and fees		580		9,877		10,457
Other non-interest income		8,136		254		8,390
Amortization expense		21		516		537
Other non-interest expense		52,843		7,839		60,682
Income before income taxes		30,150		1,776		31,926
Income tax provision		7,421		462		7,883
Net income	$	22,729	$	1,314	$	24,043

	December 31,		December 31,
	2023		2022
	(in thousands)
Identifiable Assets, Net
Banking activities	$	2,106,632	$	2,160,545
Insurance agency activities		2,031		17,965
Consolidated Total Assets	$	2,108,663	$	2,178,510