Business Segments

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Summary of net interest income related to commercial and consumer marine loans and gains on sales of loans

NOTE 27. Business Segments

The Company has two reportable operating segments: community banking and marine lending. Revenue from community banking operations consist primarily of net interest income related to investments in loan and securities and outstanding deposits and borrowings, fees earned on deposit accounts and debit card interchange activity. Revenue from marine lending operations consist primarily of net interest income related to commercial and consumer marine loans and gains on sales of loans.

Financial information of the parent company and the Bank of Clarke Wealth Management Division 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 wealth management division's net recenues are comprised primarily of income from offering wealth management services and insurance products through third-party service providers.

Marine lending was identified as a newly reportable segment in 2022 and as such, the Company has included the prior period financial information for comparative purposes. The following table provides income and asset information as of and for the twelve months ended December 31, 2022 and 2021, which are included within the Consolidated Balance Sheets and Consolidated Statements of Income.

	Twelve Months Ended
	December 31, 2022
	Community Banking		Marine Lending			All Other			Eliminations		Consolidated
	(in thousands)
Interest Income	$	47,554	$	7,132		$	—		$	—	$	54,686
Interest Expense		3,826		580			1,067			—		5,473
Net Interest Income		43,728		6,552			(1,067	)		—		49,213
Gain on sales of loans		478		1,397			—			—		1,875
Other noninterest income		7,222		99			4,149			—		11,470
Net Revenue		51,428		8,048			3,082			—		62,558
Provision for loan losses		1,059		771			—			—		1,830
Noninterest expense		36,401		3,695			2,961			—		43,057
Income (loss) before taxes		13,968		3,582			121			—		17,671
Income tax expense (benefit)		2,343		794			13			—		3,150
Net Income (loss)	$	11,625	$	2,788		$	108		$	—	$	14,521
Other data:
Capital expenditures	$	829	$	9		$	—		$	—	$	838
Depreciation and amortization		1,550		236			124			—		1,910
	Twelve Months Ended
	December 31, 2021
	Community Banking		Marine Lending			All Other			Eliminations		Consolidated
	(in thousands)
Interest Income	$	40,003	$	2,630		$	43		$	—	$	42,676
Interest Expense		1,645		32			—			—		1,677
Net Interest Income		38,358		2,598			43			—		40,999
Gain on sales of loans		636		1,022			—			—		1,658
Other noninterest income		6,597		10			3,055			—		9,662
Net Revenue		45,591		3,630			3,098			—		52,319
Provision for loan losses		2,657		(1,153	)		(21	)		—		1,483
Noninterest expense		33,525		2,056			2,468			—		38,049
Income (loss) before taxes		9,409		2,727			651			—		12,787
Income tax expense (benefit)		1,034		573			159			—		1,766
Net Income (loss)	$	8,375	$	2,154		$	492		$	—	$	11,021
Other data:
Capital expenditures	$	520	$	—		$	—		$	—	$	520
Depreciation and amortization		1,632		14			22		$	—		1,668
	Community Banking		Marine Lending			All Other			Eliminations		Consolidated
Total assets at December 31, 2022	$	1,377,461	$	237,595		$	1,661		$	—	$	1,616,717
Total assets at December 31, 2021		1,190,471		110,726			1,841			—		1,303,038