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Segment Reporting
9 Months Ended
Sep. 30, 2025
Segment Reporting  
Segment Reporting

Note 13 – Segment Reporting

The Corporation is managed under an organizational structure that conducts business in two primary operating segments;  (i) Community Banking and (ii) Wealth Management.  The Corporation is primarily managed based on the line of business structure.  In that regard, the Corporation provides the same lines of business, which have the same product and service offerings, have similar types and classes of customers and utilize similar service delivery methods across our entire geographic footprint.  Pricing guidelines for products and services are across all regions.  Community Banking and Trust and Investment Services are delineated by the products and services that each segment offers.  

Business activity for the operating segments is as follows:

Community Banking:  The Community Banking segment is conducted through the Bank and involves delivering a broad range of financial products and services, including various loan and deposit products, to consumer, business, and not-for-profit customers.  Parent company income and assets are included in the Community Banking segment, as the majority of parent company functions are related to this segment.  Major revenue sources include net interest income, gains on sales of mortgage loans, and service charges on deposit accounts.  Expenses include salaries and employee benefits, occupancy, data processing, FDIC premiums, marketing, equipment, and other expenses.  

Wealth Management:  The Wealth Management segment is conducted through the Bank and offers corporate trustee services, trust and estate administration, IRA administration and custody services.  Revenues for this segment is generated from administration, service and custody fees, brokerage commissions, and management fees that are derived from Assets Under Management.  Expenses include personnel, occupancy, data processing, marketing, equipment, and other expenses.  

The accounting policies of each reportable segment are the same as those of our consolidated entity except that expenses for consolidated back-office operations and general overhead-type expenses such as executive administration, accounting, information technology and human resources are recorded in the Community Banking segment and reimbursed by the Wealth Management segment through a monthly management fee based on estimated uses of those services.

An internal team of the Corporation’s executive directors including the Chief Executive Officer, Chief Financial Officer, and Chief Wealth Officer serve as the Corporation’s Chief Operating Decision Maker (“CODM”).  The CODM reviews actual net income verses budgeted net income to assess segment performance on a monthly basis and to make decisions about allocating capital and personnel to the segments.

Financial results by operating segment, including significant expense categories provided to the CODM are detailed below.  Certain prior period amounts have been reclassified to conform to the current presentation.  The Trust and Investment Services segment excludes off-balance-sheet assets under management with a total fair value of $1.8 billion and $1.7 billion at September 30, 2025 and December 31 2024, respectively.

Total assets of each operating segment at September 30, 2025 and December 31, 2024 were as follows:

Community

Wealth

Banking

    

Management

    

Total

Total assets as of September 30, 2025

$

2,023,680

$

294

$

2,023,974

Total assets as of December 31, 2024

$

1,972,513

$

509

$

1,973,022

Information for the operating segments for the nine- and three-month periods ended September 30, 2025 and 2024 is presented in the following tables:

Nine months ended

September 30, 2025

Community

Wealth

(in thousands)

Banking

    

Management

    

Total

Interest income

$

74,695

$

$

74,695

Interest expense

24,569

24,569

Net interest income

50,126

50,126

Credit loss expense

2,026

2,026

Net interest income after credit loss expense

48,100

48,100

Other operating income:

Net gains on sales of residential mortgages

401

401

Service charges on deposit accounts

1,687

1,687

Other service charges

638

638

Trust department income

7,157

7,157

Debit card income

2,884

2,884

Brokerage commissions

1,137

1,137

Other segment income (1)

1,431

1,431

Total other operating income

7,041

8,294

15,335

Other operating expenses:

Salaries and employee benefits

18,841

3,398

22,239

Equipment and occupancy

3,628

73

3,701

Data processing

4,331

289

4,620

FDIC premiums

778

778

Other segment expenses (2)

6,848

350

7,198

Total operating expenses

34,426

4,110

38,536

Income before income taxes and intercompany fees

20,715

4,184

24,899

Intercompany management fee income/(expense)

9

(9)

Income before income taxes

20,724

4,175

24,899

Income tax expense

5,283

878

6,161

Net income

$

15,441

$

3,297

$

18,738

Significant noncash items:

Credit loss expense

$

2,026

$

$

2,026

Depreciation

1,923

12

1,935

Amortization of intangible assets

90

157

247

(1) Other segment income includes bank owned life insurance income, gains on sales of investment securities available for sale, gains on disposals of fixed assets, and and miscellaneous income.

(2) Other segment expenses include professional services, contract labor, telephone, investor relations, contributions, net OREO expense/(income), and miscellaneous expenses.

Nine months ended

September 30, 2024

Community

Wealth

(in thousands)

Banking

    

Management

    

Total

Interest income

$

68,268

$

$

68,268

Interest expense

23,990

23,990

Net interest income

44,278

44,278

Credit loss expense

2,404

2,404

Net interest income after credit loss expense

41,874

41,874

Other operating income:

Net gains on sales of residential mortgages

282

282

Service charges on deposit accounts

1,667

1,667

Other service charges

676

676

Trust department income

6,771

6,771

Debit card income

2,931

2,931

Brokerage commissions

1,154

1,154

Other segment income (1)

1,288

1,288

Total other operating income

6,844

7,925

14,769

Other operating expenses:

Salaries and employee benefits

18,359

3,214

21,573

Equipment and occupancy

4,409

91

4,500

Data processing

3,821

252

4,073

FDIC premiums

810

810

Other segment expenses (2)

6,264

339

6,603

Total operating expenses

33,663

3,896

37,559

Income before income taxes and intercompany fees

15,055

4,029

19,084

Intercompany management fee income/(expense)

9

(9)

Income before income taxes

15,064

4,020

19,084

Income tax expense

3,857

844

4,701

Net income

$

11,207

$

3,176

$

14,383

Significant noncash items:

Credit loss expense

$

2,404

$

$

2,404

Depreciation

2,612

21

2,633

Amortization of intangible assets

90

157

247

(1) Other segment income includes bank owned life insurance income, and miscellaneous income.

(2) Other segment expenses include professional services, contract labor, telephone, investor relations, contributions, net OREO expense/(income), and miscellaneous expenses.

For the three months ended

September 30, 2025

Community

Wealth

(in thousands)

Banking

    

Management

    

Total

Interest income

$

25,762

$

$

25,762

Interest expense

8,359

8,359

Net interest income

17,403

17,403

Credit loss expense

510

510

Net interest income after credit loss expense

16,893

16,893

Other operating income:

Net gains on sales of residential mortgages

163

163

Service charges on deposit accounts

563

563

Other service charges

218

218

Trust department income

2,448

2,448

Debit card income

980

980

Brokerage commissions

346

346

Other segment income (1)

617

617

Total other operating income

2,541

2,794

5,335

Other operating expenses:

Salaries and employee benefits

6,443

1,146

7,589

Equipment and occupancy

1,171

23

1,194

Data processing

1,423

94

1,517

FDIC premiums

266

266

Other segment expenses (2)

2,311

109

2,420

Total operating expenses

11,614

1,372

12,986

Income before income taxes and intercompany fees

7,820

1,422

9,242

Intercompany management fee income/(expense)

3

(3)

Income before income taxes

7,823

1,419

9,242

Income tax expense

1,996

298

2,294

Net income

$

5,827

$

1,121

$

6,948

Significant noncash items:

Credit loss expense

$

510

$

$

510

Depreciation

652

3

655

Amortization of intangible assets

30

52

82

(1) Other segment income includes bank owned life insurance income, gains on sales of investment securities available for sale, gains on disposals of fixed assets, and and miscellaneous income.

(2) Other segment expenses include professional services, contract labor, telephone, investor relations, contributions, net OREO expense/(income), and miscellaneous expenses.

For the three months ended

September 30, 2024

Community

Wealth

(in thousands)

Banking

    

Management

    

Total

Interest income

$

23,257

$

$

23,257

Interest expense

8,029

8,029

Net interest income

15,228

15,228

Credit loss expense

264

264

Net interest income after credit loss expense

14,964

14,964

Other operating income:

Net gains on sales of residential mortgages

141

141

Service charges on deposit accounts

555

555

Other service charges

236

236

Trust department income

2,328

2,328

Debit card income

1,000

1,000

Brokerage commissions

297

297

Other segment income (1)

496

496

Total other operating income

2,428

2,625

5,053

Other operating expenses:

Salaries and employee benefits

6,108

1,052

7,160

Equipment and occupancy

1,306

30

1,336

Data processing

1,260

73

1,333

FDIC premiums

256

256

Other segment expenses (2)

2,118

111

2,229

Total operating expenses

11,048

1,266

12,314

Income before income taxes and intercompany fees

6,344

1,359

7,703

Intercompany management fee income/(expense)

3

(3)

Income before income taxes

6,347

1,356

7,703

Income tax expense

1,666

266

1,932

Net income

$

4,681

$

1,090

$

5,771

Significant noncash items:

Credit loss expense

$

264

$

$

264

Depreciation

834

10

844

Amortization of intangible assets

30

52

82

(1) Other segment income includes bank owned life insurance income, and miscellaneous income.

(2) Other segment expenses include professional services, contract labor, telephone, investor relations, contributions, net OREO expense/(income), and miscellaneous expenses.