Business Segments

12 Months Ended

Dec. 31, 2025

Segment Reporting [Abstract]

Business Segments

NOTE 27. Business Segments

The Company has three reportable operating segments: community banking, marine lending and wealth management.

The community banking segment offers a wide range of retail and commercial banking services in the form of loan and deposit products. Revenues consist primarily of net interest income related to investments in non-marine loans and securities and outstanding deposits and borrowings, fees earned on deposit accounts and debit card interchange activity. During the first quarter of 2025 the Company executed a balance sheet repositioning of its investment securities portfolio, selling available for sale securities with an amortized cost balance of $99.2 million resulting in a net realized pre-tax loss of $12.4 million and reinvesting $66.0 million into purchases of available for sale securities. For the year ended December 31, 2024, non-interest community banking revenue included a realized pre-tax gain of $3.9 million due to the sale of the Company's operating center and branch building in a sales-leaseback transaction.

Revenue from marine lending operations consist primarily of net interest income related to commercial and consumer marine vessel retail loans originated through August 2023, at which time the Company ceased accepting new marine lending business. The balance of the marine loan portfolio, which constitutes a significant portion of the Company's assets, revenues, and earnings, totaled $175.6 million at December 31, 2025 and $210.1 million at December 31, 2024. This balance will continue to decline as the loans are repaid.

The wealth management segment offers both a trust department and investment services. Trust department services include a full range of personal and retirement plan services, and investment services products include, among other products, annuities, IRA's, life insurance, fixed income investing, and full service or discount brokerage services. Non-deposit investment products are offered through a third-party service provider.

Financial information of the parent company is included in the "All Other" category. The parent company's revenue and expenses are comprised primarily of interest expense associated with subordinated debt.

The Company's segment structure reflects the financial information and reports used by our chief operating decision maker to make decisions regarding the business, including resource allocations and performance. Our Chief Executive Officer is the chief operating decision maker ("CODM"). We evaluate performance and allocate resources based on the operating income of each operating segment. The CODM uses segment operating income in the annual budget process. The operating income of each operating segment includes the revenues of the segment less expenses that are directly related to those revenues. Operating overhead, shared costs and share-based compensation costs are included in Community Banking.

The following table provides income and asset information as of and for the twelve months ended December 31, 2025 and 2024, which are included within the Consolidated Balance Sheets and Consolidated Statements of Income.

	Twelve Months Ended
	December 31, 2025
	Community Banking			Marine Lending		Wealth Management		All Other			Eliminations		Consolidated
	(in thousands)
Interest Income	$	88,757		$	10,248	$	—	$	—		$	—	$	99,005
Interest Expense		30,943			4,031		—		1,417			—		36,391
Net Interest Income (Expense)		57,814			6,217		—		(1,417	)		—		62,614
Gain on sales of loans		3,375			—		—		—			—		3,375
(Loss) on the sale of securities		(12,425	)		—		—		—			—		(12,425	)
Other noninterest income		8,305			—		7,628		—			—		15,933
Net Revenue		57,069			6,217		7,628		(1,417	)		—		69,497
Provision for credit losses		3,690			11		—		—			—		3,701
Salaries and employee benefits		30,829			—		2,269		105			—		33,203
Occupancy expenses		2,526			—		88		—			—		2,614
Professional fees		2,026			26		—		368			—		2,420
Data processing fees		2,127			—		83		—			—		2,210
Other noninterest expense		14,166			407		827		24			—		15,424
Total Noninterest Expenses		51,674			433		3,267		497			—		55,871
Income (loss) before taxes		1,705			5,773		4,361		(1,914	)		—		9,925
Income tax expense (benefit)		7			1,212		916		(424	)		—		1,711
Net Income (loss)	$	1,698		$	4,561	$	3,445	$	(1,490	)	$	—	$	8,214
Other data:
Capital expenditures	$	1,380		$	—	$	26	$	—		$	—	$	1,406
Depreciation and amortization		987			—		131		67			—		1,185
	Twelve Months Ended
	December 31, 2024
	Community Banking			Marine Lending		Wealth Management		All Other			Eliminations		Consolidated
	(in thousands)
Interest Income	$	78,805		$	12,516	$	—	$	—		$	—	$	91,321
Interest Expense		33,049			5,628		—		1,417			—		40,094
Net Interest Income (Expense)		45,756			6,888		—		(1,417	)		—		51,227
Gain on sales of loans		2,141			—		—		—			—		2,141
Other noninterest income		13,792			—		5,624		—			—		19,416
Net Revenue		61,689			6,888		5,624		(1,417	)		—		72,784
Provision for credit losses		2,403			148		—		—			—		2,551
Salaries and employee benefits		28,224			—		1,734		101			—		30,059
Occupancy expenses		1,987			—		90		—			—		2,077
Professional fees		1,723			25		—		317			—		2,065
Data processing fees		2,399			—		19		—			—		2,418
Other noninterest expense		13,115			604		980		14			—		14,713
Total Noninterest Expenses		47,448			629		2,823		432			—		51,332
Income (loss) before taxes		11,838			6,111		2,801		(1,849	)		—		18,901
Income tax expense (benefit)		2,048			1,283		588		(361	)		—		3,558
Net Income (loss)	$	9,790		$	4,828	$	2,213	$	(1,488	)	$	—	$	15,343
Other data:
Capital expenditures	$	1,017		$	—	$	2	$	—		$	—	$	1,019

Depreciation and amortization		1,349		—		127		67		—		1,543
	Community Banking		Marine Lending		Wealth Management		All Other		Eliminations		Consolidated
Total assets at December 31, 2025	$	1,705,394	$	181,062	$	849	$	1,321	$	—	$	1,888,626
Total assets at December 31, 2024		1,645,219		218,055		955		1,986		—		1,866,215