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Segment Information | 6 Months Ended
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Jun. 30, 2026
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company's operations are managed along three operating segments: Community Banking, Home Mortgage Lending, and Specialty Finance. The Company reevaluated our reportable operating segments in the fourth quarter of 2024 concurrent with the acquisition of Sallyport Commercial Finance, LLC (“SCF”), which resulted in the addition of the Specialty Finance segment. The Community Banking segment's principal business focus is the offering of loan and deposit products to business and consumer customers in its primary market areas. As of June 30, 2026, the Community Banking segment operated 21 branches throughout Alaska. The Home Mortgage Lending segment's principal business focus is the origination and sale of mortgage loans for 1-4 family residential properties, mortgage loan servicing for a portion of mortgage loans sold, and investment in certain 1-4 family residential mortgage loans on our balance sheet. The Specialty Finance segment's principal business focus is factoring, asset based lending and alternative working capital solutions to small and medium sized enterprises, and includes SCF and Northrim Funding Services, which was previously reported in the Community Banking segment prior to the acquisition of SCF. The Company's reportable segments are determined by our Chief Financial Officer and the Chief Executive Officer, whom collectively are the designated chief operating decision maker. The reportable segments are determined based on information provided about the Company's products and services offered. They are also distinguished by the level of information provided to the chief operating decision maker, who uses the information to review performance of various components of the business, which are then aggregated if operating performance, products and services, and customers are similar. The chief operating decision maker evaluates the financial performance of the Company's business components such as by evaluating revenue streams, significant expenses, and budget to actual results in assessing the performance of the Company's segments and in the determination of allocating resources. Segment pretax net income or loss is used to assess the performance of the community banking segment by monitoring the margin between interest income and interest expense and the efficiency ratio specific to the segment. Segment pretax net income or loss is used to assess the performance of the home mortgage lending segment by monitoring the premium received on loan sales, the margin between interest income and interest expense, and the profitability of home mortgage servicing activities. Segment pretax net income or loss is used to assess the performance of the specialty finance segment by monitoring pretax income and the yield of purchased receivable fees. Accounting policies for segments are the same as those described in Note 1 to the Consolidated Financial Statements. Interest expense is allocated to each segment based on average cash utilized to fund the operations of the segment and the average cost of interest-bearing liabilities for the consolidated entity. Indirect salary expense for activities such as general management, accounting and finance, human resources, compliance, information technology, risk management, and internal audit are allocated based on the average percentage of employee time spent working in each specific segment. Summarized financial information for the Company's reportable segments and the reconciliation to the consolidated financial results for the periods presented is shown in the following tables:
| Three Months Ended June 30, 2026
(In Thousands) | Community Banking |  | Home Mortgage Lending |  | Specialty Finance |  | Consolidated
Interest income | $41,124 |  |  | $4,934 |  |  | $1,096 |  |  | $47,154 |
Interest expense | 7,888 |  |  | 1,460 |  |  | 670 |  |  | 10,018 |
Net interest income | 33,236 |  |  | 3,474 |  |  | 426 |  |  | 37,136 |
Provision for credit losses | 503 |  |  | 279 |  |  | 845 |  |  | 1,627 |
Net interest income after provision for credit losses | 32,733 |  |  | 3,195 |  |  | (419) |  |  | 35,509 |
Net realized gains on mortgage loans sold | — |  |  | 5,408 |  |  | — |  |  | 5,408 |
Change in fair value of mortgage loan commitments, net | — |  |  | (202) |  |  | — |  |  | (202) |
Total production revenue | — |  |  | 5,206 |  |  | — |  |  | 5,206 |
Mortgage servicing revenue | — |  |  | 2,568 |  |  | — |  |  | 2,568 |
Change in fair value of mortgage servicing rights: |  |  |  |  |  |  |
Due to changes in model inputs of assumptions | — |  |  | (366) |  |  | — |  |  | (366) |
Other | — |  |  | (562) |  |  | — |  |  | (562) |
Total mortgage servicing revenue, net | — |  |  | 1,640 |  |  | — |  |  | 1,640 |
Other mortgage banking revenue | — |  |  | 292 |  |  | — |  |  | 292 |
Total mortgage banking income | — |  |  | 7,138 |  |  | — |  |  | 7,138 |
Purchased receivable income | — |  |  | — |  |  | 6,473 |  |  | 6,473 |
Other operating income | 3,097 |  |  | — |  |  | 29 |  |  | 3,126 |
Total other operating income | 3,097 |  |  | 7,138 |  |  | 6,502 |  |  | 16,737 |
Salaries and other personnel expense | 12,418 |  |  | 6,399 |  |  | 1,967 |  |  | 20,784 |
Data processing expense | 2,977 |  |  | 299 |  |  | 206 |  |  | 3,482 |
Occupancy expense | 1,384 |  |  | 372 |  |  | 69 |  |  | 1,825 |
Professional and outside services | 935 |  |  | 258 |  |  | 235 |  |  | 1,428 |
Marketing expense | 640 |  |  | 40 |  |  | 6 |  |  | 686 |
Insurance expense | 417 |  |  | 15 |  |  | — |  |  | 432 |
Compensation expense - Sallyport acquisition payments | — |  |  | — |  |  | 500 |  |  | 500 |
Other operating expense | 1,663 |  |  | 739 |  |  | 483 |  |  | 2,885 |
Total other operating expense | 20,434 |  |  | 8,122 |  |  | 3,466 |  |  | 32,022 |
Income before provision for income taxes | 15,396 |  |  | 2,211 |  |  | 2,617 |  |  | 20,224 |
Provision for income taxes | 3,651 |  |  | 604 |  |  | 627 |  |  | 4,882 |
Net income | $11,745 |  |  | $1,607 |  |  | $1,990 |  |  | $15,342 |
Three Months Ended June 30, 2026 |  |  |  |  |  |  |
(In Thousands) | Community Banking |  | Home Mortgage Lending |  | Specialty Finance |  | Consolidated
Interest income | $41,124 |  |  | $4,934 |  |  | $1,096 |  |  | $47,154 |
Mortgage banking income - external revenue | — |  |  | 7,138 |  |  | — |  |  | 7,138 |
Mortgage banking income - intersegment revenues | — |  |  | 924 |  |  | — |  |  | 924 |
Purchased receivable income | — |  |  | — |  |  | 6,473 |  |  | 6,473 |
Other operating income | 3,097 |  |  | — |  |  | 29 |  |  | 3,126 |
| 44,221 |  |  | 12,996 |  |  | 7,598 |  |  | 64,815 |
Reconciliation of revenue |  |  |  |  |  |  |
Elimination of intersegment revenues | — |  |  | (924) |  |  | — |  |  | (924) |
Total consolidated revenues | $44,221 |  |  | $12,072 |  |  | $7,598 |  |  | $63,891 |
Less: |  |  |  |  |  |  |
Interest expense | 7,888 |  |  | 1,460 |  |  | 670 |  |  | 10,018 |
Provision for credit losses | 503 |  |  | 279 |  |  | 845 |  |  | 1,627 |
Segment gross profit | 35,830 |  |  | 10,333 |  |  | 6,083 |  |  | 52,246 |
Less(1): |  |  |  |  |  |  |
Salaries and other personnel expense | $12,418 |  |  | $6,399 |  |  | $1,967 |  |  | $20,784 |
Data processing expense | 2,977 |  |  | 299 |  |  | 206 |  |  | 3,482 |
Occupancy expense | 1,384 |  |  | 372 |  |  | 69 |  |  | 1,825 |
Professional and outside services | 935 |  |  | 258 |  |  | 235 |  |  | 1,428 |
Marketing expense | 640 |  |  | 40 |  |  | 6 |  |  | 686 |
Insurance expense | 417 |  |  | 15 |  |  | — |  |  | 432 |
Compensation expense - Sallyport acquisition payments | — |  |  | — |  |  | 500 |  |  | 500 |
Intersegment expense | 924 |  |  | — |  |  | — |  |  | 924 |
Other segment items(2) | 1,663 |  |  | 739 |  |  | 483 |  |  | 2,885 |
Segment expense | 21,358 |  |  | 8,122 |  |  | 3,466 |  |  | 32,946 |
Reconciliation of expense |  |  |  |  |  |  |
Elimination of intersegment expense | ($924) |  |  | $— |  |  | $— |  |  | (924) |
Total consolidated expense | $20,434 |  |  | $8,122 |  |  | $3,466 |  |  | $32,022 |
Income before provision for income taxes | $15,396 |  |  | $2,211 |  |  | $2,617 |  |  | $20,224 |
1 The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. All expenses are allocated to a segment. 2 Other segment items for each reportable segment include: Community Banking: OREO (income) expense, net of rental income and gains on sale, director fees, operational charge offs net of recoveries, loan collection and collateral costs, and other miscellaneous operating costs related to community banking activities. Home Mortgage Lending: OREO (income) expense, net of rental income and gains on sale related home mortgage loans, director fees related at RML, loan collection and collateral costs related to home mortgage loans, and other miscellaneous operating costs related to home mortgage lending activities. Specialty Finance: miscellaneous operating costs related to specialty finance activities.
| Three Months Ended June 30, 2025
(In Thousands) | Community Banking |  | Home Mortgage Lending |  | Specialty Finance |  | Consolidated
Interest income | $38,969 |  |  | $5,048 |  |  | $782 |  |  | $44,799 |
Interest expense | 8,998 |  |  | 1,541 |  |  | 668 |  |  | 11,207 |
Net interest income | 29,971 |  |  | 3,507 |  |  | 114 |  |  | 33,592 |
Provision for credit losses | 1,319 |  |  | 639 |  |  | 18 |  |  | 1,976 |
Net interest income after provision for credit losses | 28,652 |  |  | 2,868 |  |  | 96 |  |  | 31,616 |
Net realized gains on mortgage loans sold | — |  |  | 5,091 |  |  | — |  |  | 5,091 |
Change in fair value of mortgage loan commitments, net | — |  |  | (110) |  |  | — |  |  | (110) |
Total production revenue | — |  |  | 4,981 |  |  | — |  |  | 4,981 |
Mortgage servicing revenue | — |  |  | 2,957 |  |  | — |  |  | 2,957 |
Change in fair value of mortgage servicing rights: |  |  |  |  |  |  |
Due to changes in model inputs of assumptions | — |  |  | (355) |  |  | — |  |  | (355) |
Other | — |  |  | (463) |  |  | — |  |  | (463) |
Total mortgage servicing revenue, net | — |  |  | 2,139 |  |  | — |  |  | 2,139 |
Other mortgage banking revenue | — |  |  | 280 |  |  | — |  |  | 280 |
Total mortgage banking income | — |  |  | 7,400 |  |  | — |  |  | 7,400 |
Purchased receivable income | — |  |  | — |  |  | 5,897 |  |  | 5,897 |
Other operating income | 3,268 |  |  | — |  |  | 75 |  |  | 3,343 |
Total other operating income | 3,268 |  |  | 7,400 |  |  | 5,972 |  |  | 16,640 |
Salaries and other personnel expense | 13,360 |  |  | 5,682 |  |  | 1,812 |  |  | 20,854 |
Data processing expense | 2,960 |  |  | 270 |  |  | 136 |  |  | 3,366 |
Occupancy expense | 1,476 |  |  | 556 |  |  | 72 |  |  | 2,104 |
Professional and outside services | 634 |  |  | 258 |  |  | 221 |  |  | 1,113 |
Marketing expense | 894 |  |  | 142 |  |  | 6 |  |  | 1,042 |
Insurance expense | 734 |  |  | 21 |  |  | 1 |  |  | 756 |
Compensation expense - Sallyport acquisition payments | — |  |  | — |  |  | 600 |  |  | 600 |
Other operating expense | 1,706 |  |  | 664 |  |  | 283 |  |  | 2,653 |
Total other operating expense | 21,764 |  |  | 7,593 |  |  | 3,131 |  |  | 32,488 |
Income before provision for income taxes | 10,156 |  |  | 2,675 |  |  | 2,937 |  |  | 15,768 |
Provision (benefit) for income taxes | 2,413 |  |  | 746 |  |  | 831 |  |  | 3,990 |
Net income | $7,743 |  |  | $1,929 |  |  | $2,106 |  |  | $11,778 |
Three Months Ended June 30, 2025 |  |  |  |  |  |  |
(In Thousands) | Community Banking |  | Home Mortgage Lending |  | Specialty Finance |  | Consolidated
Interest income | $38,969 |  |  | $5,048 |  |  | $782 |  |  | $44,799 |
Mortgage banking income - external revenue | — |  |  | 7,400 |  |  | — |  |  | 7,400 |
Mortgage banking income - intersegment revenues | — |  |  | 914 |  |  | — |  |  | 914 |
Purchased receivable income | — |  |  | — |  |  | 5,897 |  |  | 5,897 |
Other operating income | 3,268 |  |  | — |  |  | 75 |  |  | 3,343 |
| 42,237 |  |  | 13,362 |  |  | 6,754 |  |  | 62,353 |
Reconciliation of revenue |  |  |  |  |  |  |
Elimination of intersegment revenues | — |  |  | (914) |  |  | — |  |  | (914) |
Total consolidated revenues | $42,237 |  |  | $12,448 |  |  | $6,754 |  |  | $61,439 |
Less: |  |  |  |  |  |  |
Interest expense | 8,998 |  |  | 1,541 |  |  | 668 |  |  | 11,207 |
Provision for credit losses | 1,319 |  |  | 639 |  |  | 18 |  |  | 1,976 |
Segment gross profit | 31,920 |  |  | 10,268 |  |  | 6,068 |  |  | 48,256 |
Less(1): |  |  |  |  |  |  |
Salaries and other personnel expense | $13,360 |  |  | $5,682 |  |  | $1,812 |  |  | $20,854 |
Data processing expense | 2,960 |  |  | 270 |  |  | 136 |  |  | 3,366 |
Occupancy expense | 1,476 |  |  | 556 |  |  | 72 |  |  | 2,104 |
Professional and outside services | 634 |  |  | 258 |  |  | 221 |  |  | 1,113 |
Marketing expense | 894 |  |  | 142 |  |  | 6 |  |  | 1,042 |
Insurance expense | 734 |  |  | 21 |  |  | 1 |  |  | 756 |
Compensation expense - Sallyport acquisition payments | — |  |  | — |  |  | 600 |  |  | 600 |
Intersegment expense | 914 |  |  | — |  |  | — |  |  | 914 |
Other segment items(2) | 1,706 |  |  | 664 |  |  | 283 |  |  | 2,653 |
Segment expense | 22,678 |  |  | 7,593 |  |  | 3,131 |  |  | 33,402 |
Reconciliation of expense |  |  |  |  |  |  |
Elimination of intersegment expense | ($914) |  |  | $— |  |  | $— |  |  | (914) |
Total consolidated expense | $21,764 |  |  | $7,593 |  |  | $3,131 |  |  | $32,488 |
Income before provision for income taxes | $10,156 |  |  | $2,675 |  |  | $2,937 |  |  | $15,768 |
1 The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. All expenses are allocated to a segment. 2 Other segment items for each reportable segment include: Community Banking: OREO (income) expense, net of rental income and gains on sale, director fees, operational charge offs net of recoveries, loan collection and collateral costs, and other miscellaneous operating costs related to community banking activities. Home Mortgage Lending: OREO (income) expense, net of rental income and gains on sale related home mortgage loans, director fees related at RML, loan collection and collateral costs related to home mortgage loans, and other miscellaneous operating costs related to home mortgage lending activities. Specialty Finance: miscellaneous operating costs related to specialty finance activities.
| Six Months Ended June 30, 2026
(In Thousands) | Community Banking |  | Home Mortgage Lending |  | Specialty Finance |  | Consolidated
Interest income | $81,160 |  |  | $9,125 |  |  | $1,765 |  |  | $92,050 |
Interest expense | 16,084 |  |  | 2,855 |  |  | 1,314 |  |  | 20,253 |
Net interest income | 65,076 |  |  | 6,270 |  |  | 451 |  |  | 71,797 |
Provision for credit losses | 656 |  |  | 841 |  |  | 1,090 |  |  | 2,587 |
Net interest income after provision for credit losses | 64,420 |  |  | 5,429 |  |  | (639) |  |  | 69,210 |
Net realized gains on mortgage loans sold | — |  |  | 8,405 |  |  | — |  |  | 8,405 |
Change in fair value of mortgage loan commitments, net | — |  |  | 518 |  |  | — |  |  | 518 |
Total production revenue | — |  |  | 8,923 |  |  | — |  |  | 8,923 |
Mortgage servicing revenue | — |  |  | 5,235 |  |  | — |  |  | 5,235 |
Change in fair value of mortgage servicing rights: |  |  |  |  |  |  |
Due to changes in model inputs of assumptions | — |  |  | 97 |  |  | — |  |  | 97 |
Other | — |  |  | (1,152) |  |  | — |  |  | (1,152) |
Total mortgage servicing revenue, net | — |  |  | 4,180 |  |  | — |  |  | 4,180 |
Other mortgage banking revenue | — |  |  | 496 |  |  | — |  |  | 496 |
Total mortgage banking income | — |  |  | 13,599 |  |  | — |  |  | 13,599 |
Purchased receivable income | — |  |  | — |  |  | 12,605 |  |  | 12,605 |
Other operating income | 5,513 |  |  | — |  |  | (101) |  |  | 5,412 |
Total other operating income | 5,513 |  |  | 13,599 |  |  | 12,504 |  |  | 31,616 |
Salaries and other personnel expense | 24,810 |  |  | 11,674 |  |  | 3,806 |  |  | 40,290 |
Data processing expense | 5,813 |  |  | 599 |  |  | 375 |  |  | 6,787 |
Occupancy expense | 2,949 |  |  | 840 |  |  | 140 |  |  | 3,929 |
Professional and outside services | 1,766 |  |  | 511 |  |  | 310 |  |  | 2,587 |
Marketing expense | 1,396 |  |  | 177 |  |  | 14 |  |  | 1,587 |
Insurance expense | 801 |  |  | 35 |  |  | — |  |  | 836 |
Compensation expense - Sallyport acquisition payments | — |  |  | — |  |  | 1,000 |  |  | 1,000 |
Other operating expense | 3,289 |  |  | 1,487 |  |  | 852 |  |  | 5,628 |
Total other operating expense | 40,824 |  |  | 15,323 |  |  | 6,497 |  |  | 62,644 |
Income before provision for income taxes | 29,109 |  |  | 3,705 |  |  | 5,368 |  |  | 38,182 |
Provision for income taxes | 6,864 |  |  | 1,012 |  |  | 1,289 |  |  | 9,165 |
Net income | $22,245 |  |  | $2,693 |  |  | $4,079 |  |  | $29,017 |
Six Months Ended June 30, 2026 |  |  |  |  |  |  |
(In Thousands) | Community Banking |  | Home Mortgage Lending |  | Specialty Finance |  | Consolidated
Interest income | $81,160 |  |  | $9,125 |  |  | $1,765 |  |  | $92,050 |
Mortgage banking income - external revenue | — |  |  | 13,599 |  |  | — |  |  | 13,599 |
Mortgage banking income - intersegment revenues | — |  |  | 1,878 |  |  | — |  |  | 1,878 |
Purchased receivable income | — |  |  | — |  |  | 12,605 |  |  | 12,605 |
Other operating income | 5,513 |  |  | — |  |  | (101) |  |  | 5,412 |
| 86,673 |  |  | 24,602 |  |  | 14,269 |  |  | 125,544 |
Reconciliation of revenue |  |  |  |  |  |  |
Elimination of intersegment revenues | — |  |  | (1,878) |  |  | — |  |  | (1,878) |
Total consolidated revenues | $86,673 |  |  | $22,724 |  |  | $14,269 |  |  | $123,666 |
Less: |  |  |  |  |  |  |
Interest expense | 16,084 |  |  | 2,855 |  |  | 1,314 |  |  | 20,253 |
Provision for credit losses | 656 |  |  | 841 |  |  | 1,090 |  |  | 2,587 |
Segment gross profit | 69,933 |  |  | 19,028 |  |  | 11,865 |  |  | 100,826 |
Less(1): |  |  |  |  |  |  |
Salaries and other personnel expense | $24,810 |  |  | $11,674 |  |  | $3,806 |  |  | $40,290 |
Data processing expense | 5,813 |  |  | 599 |  |  | 375 |  |  | 6,787 |
Occupancy expense | 2,949 |  |  | 840 |  |  | 140 |  |  | 3,929 |
Professional and outside services | 1,766 |  |  | 511 |  |  | 310 |  |  | 2,587 |
Marketing expense | 1,396 |  |  | 177 |  |  | 14 |  |  | 1,587 |
Insurance expense | 801 |  |  | 35 |  |  | — |  |  | 836 |
Compensation expense - Sallyport acquisition payments | — |  |  | — |  |  | 1,000 |  |  | 1,000 |
Intersegment expense | 1,878 |  |  | — |  |  | — |  |  | 1,878 |
Other segment items(2) | 3,289 |  |  | 1,487 |  |  | 852 |  |  | 5,628 |
Segment expense | 42,702 |  |  | 15,323 |  |  | 6,497 |  |  | 64,522 |
Reconciliation of expense |  |  |  |  |  |  |
Elimination of intersegment expense | ($1,878) |  |  | $— |  |  | $— |  |  | (1,878) |
Total consolidated expense | $40,824 |  |  | $15,323 |  |  | $6,497 |  |  | $62,644 |
Income before provision for income taxes | $29,109 |  |  | $3,705 |  |  | $5,368 |  |  | $38,182 |
1 The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. All expenses are allocated to a segment. 2 Other segment items for each reportable segment include: Community Banking: OREO (income) expense, net of rental income and gains on sale, director fees, operational charge offs net of recoveries, loan collection and collateral costs, and other miscellaneous operating costs related to community banking activities. Home Mortgage Lending: OREO (income) expense, net of rental income and gains on sale related home mortgage loans, director fees related at RML, loan collection and collateral costs related to home mortgage loans, and other miscellaneous operating costs related to home mortgage lending activities. Specialty Finance: miscellaneous operating costs related to specialty finance activities.
| Six Months Ended June 30, 2025
(In Thousands) | Community Banking |  | Home Mortgage Lending |  | Specialty Finance |  | Consolidated
Interest income | $75,542 |  |  | $9,440 |  |  | $1,378 |  |  | $86,360 |
Interest expense | 17,420 |  |  | 2,887 |  |  | 1,164 |  |  | 21,471 |
Net interest income | 58,122 |  |  | 6,553 |  |  | 214 |  |  | 64,889 |
Provision (benefit) for credit losses | (449) |  |  | 332 |  |  | 684 |  |  | 567 |
Net interest income after provision for credit losses | 58,571 |  |  | 6,221 |  |  | (470) |  |  | 64,322 |
Net realized gains on mortgage loans sold | — |  |  | 6,671 |  |  | — |  |  | 6,671 |
Change in fair value of mortgage loan commitments, net | — |  |  | 550 |  |  | — |  |  | 550 |
Total production revenue | — |  |  | 7,221 |  |  | — |  |  | 7,221 |
Mortgage servicing revenue | — |  |  | 5,653 |  |  | — |  |  | 5,653 |
Change in fair value of mortgage servicing rights: |  |  | — |  |  |  |  | — |
Due to changes in model inputs of assumptions | — |  |  | (677) |  |  | — |  |  | (677) |
Other | — |  |  | (996) |  |  | — |  |  | (996) |
Total mortgage servicing revenue, net | — |  |  | 3,980 |  |  | — |  |  | 3,980 |
Other mortgage banking revenue | — |  |  | 450 |  |  | — |  |  | 450 |
Total mortgage banking income | — |  |  | 11,651 |  |  | — |  |  | 11,651 |
Purchased receivable income | — |  |  | — |  |  | 12,047 |  |  | 12,047 |
Other operating income | 5,971 |  |  | — |  |  | 11 |  |  | 5,982 |
Total other operating income | 5,971 |  |  | 11,651 |  |  | 12,058 |  |  | 29,680 |
Salaries and other personnel expense | 24,124 |  |  | 10,451 |  |  | 3,502 |  |  | 38,077 |
Data processing expense | 5,630 |  |  | 533 |  |  | 307 |  |  | 6,470 |
Occupancy expense | 2,858 |  |  | 994 |  |  | 141 |  |  | 3,993 |
Professional and outside services | 1,195 |  |  | 514 |  |  | 519 |  |  | 2,228 |
Marketing expense | 1,412 |  |  | 293 |  |  | 9 |  |  | 1,714 |
Insurance expense | 1,722 |  |  | 44 |  |  | 7 |  |  | 1,773 |
Compensation expense - Sallyport acquisition payments | — |  |  | — |  |  | 1,200 |  |  | 1,200 |
Other operating expense | 3,404 |  |  | 1,254 |  |  | 546 |  |  | 5,204 |
Total other operating expense | 40,345 |  |  | 14,083 |  |  | 6,231 |  |  | 60,659 |
Income before provision for income taxes | 24,197 |  |  | 3,789 |  |  | 5,357 |  |  | 33,343 |
Provision for income taxes | 5,666 |  |  | 1,056 |  |  | 1,519 |  |  | 8,241 |
Net income | $18,531 |  |  | $2,733 |  |  | $3,838 |  |  | $25,102 |
Six Months Ended June 30, 2025 |  |  |  |  |  |  |
(In Thousands) | Community Banking |  | Home Mortgage Lending |  | Specialty Finance |  | Consolidated
Interest income | $75,542 |  |  | $9,440 |  |  | $1,378 |  |  | $86,360 |
Mortgage banking income - external revenue | — |  |  | 11,651 |  |  | — |  |  | 11,651 |
Mortgage banking income - intersegment revenues | — |  |  | 1,356 |  |  | — |  |  | 1,356 |
Purchased receivable income | — |  |  | — |  |  | 12,047 |  |  | 12,047 |
Other operating income | 5,971 |  |  | — |  |  | 11 |  |  | 5,982 |
| 81,513 |  |  | 22,447 |  |  | 13,436 |  |  | 117,396 |
Reconciliation of revenue |  |  |  |  |  |  |
Elimination of intersegment revenues | — |  |  | (1,356) |  |  | — |  |  | (1,356) |
Total consolidated revenues | $81,513 |  |  | $21,091 |  |  | $13,436 |  |  | $116,040 |
Less: |  |  |  |  |  |  |
Interest expense | 17,420 |  |  | 2,887 |  |  | 1,164 |  |  | 21,471 |
Provision (benefit) for credit losses | (449) |  |  | 332 |  |  | 684 |  |  | 567 |
Segment gross profit | 64,542 |  |  | 17,872 |  |  | 11,588 |  |  | 94,002 |
Less(1): |  |  |  |  |  |  |
Salaries and other personnel expense | $24,124 |  |  | $10,451 |  |  | $3,502 |  |  | $38,077 |
Data processing expense | 5,630 |  |  | 533 |  |  | 307 |  |  | 6,470 |
Occupancy expense | 2,858 |  |  | 994 |  |  | 141 |  |  | 3,993 |
Professional and outside services | 1,195 |  |  | 514 |  |  | 519 |  |  | 2,228 |
Marketing expense | 1,412 |  |  | 293 |  |  | 9 |  |  | 1,714 |
Insurance expense | 1,722 |  |  | 44 |  |  | 7 |  |  | 1,773 |
Compensation expense - Sallyport acquisition payments | — |  |  | — |  |  | 1,200 |  |  | 1,200 |
Intersegment expense | 1,356 |  |  | — |  |  | — |  |  | 1,356 |
Other segment items(2) | 3,404 |  |  | 1,254 |  |  | 546 |  |  | 5,204 |
Segment expense | 41,701 |  |  | 14,083 |  |  | 6,231 |  |  | 62,015 |
Reconciliation of expense |  |  |  |  |  |  |
Elimination of intersegment expense | ($1,356) |  |  | $— |  |  | $— |  |  | (1,356) |
Total consolidated expense | $40,345 |  |  | $14,083 |  |  | $6,231 |  |  | $60,659 |
Income before provision for income taxes | $24,197 |  |  | $3,789 |  |  | $5,357 |  |  | $33,343 |
1 The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. All expenses are allocated to a segment. 2 Other segment items for each reportable segment include: Community Banking: OREO (income) expense, net of rental income and gains on sale, director fees, operational charge offs net of recoveries, loan collection and collateral costs, and other miscellaneous operating costs related to community banking activities. Home Mortgage Lending: OREO (income) expense, net of rental income and gains on sale related home mortgage loans, director fees related at RML, loan collection and collateral costs related to home mortgage loans, and other miscellaneous operating costs related to home mortgage lending activities. Specialty Finance: miscellaneous operating costs related to specialty finance activities.
June 30, 2026 |  |  |  |  |  |  |
(In Thousands) | Community Banking |  | Home Mortgage Lending |  | Specialty Finance |  | Consolidated
Total assets | $2,808,516 |  |  | $400,520 |  |  | $206,350 |  |  | $3,415,386 |
Loans held for sale | $— |  |  | $83,272 |  |  | $— |  |  | $83,272 |
Loans | $2,110,524 |  |  | $260,301 |  |  | $15,503 |  |  | $2,386,328 |
Purchased receivables, net | $— |  |  | $— |  |  | $122,792 |  |  | $122,792 |
Goodwill | $7,525 |  |  | $7,492 |  |  | $34,857 |  |  | $49,874 |
December 31, 2025 |  |  |  |  |  |  |
(In Thousands) | Community Banking |  | Home Mortgage Lending |  | Specialty Finance |  | Consolidated
Total assets | $2,724,236 |  |  | $390,242 |  |  | $175,795 |  |  | $3,290,273 |
Loans held for sale | $— |  |  | $100,323 |  |  | $— |  |  | $100,323 |
Loans | $2,034,834 |  |  | $243,167 |  |  | $17,498 |  |  | $2,295,499 |
Purchased receivables, net | $— |  |  | $— |  |  | $101,642 |  |  | $101,642 |
Goodwill | $7,525 |  |  | $7,492 |  |  | $34,857 |  |  | $49,874 |

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