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Business Segments
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Business Segments

NOTE 16. 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.

 

The following table provides income and asset information as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and March 31, 2022, which are included within the Consolidated Balance Sheets and Consolidated Statements of Income. The results by business segment are based on management’s accounting process, which assigns income statement items and assets to each operating segment. Given the Company's reportable segments are contained within the Bank, management must make certain allocations of expenses, which may not be representative of the costs expected to be incurred if the specific business segments operated as stand-alone entities.

 

 

Three Months Ended

 

 

 

March 31, 2023

 

 

 

Community Banking

 

 

Marine Lending

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

15,241

 

 

$

3,317

 

 

$

—

 

 

$

—

 

 

$

18,558

 

Interest Expense

 

 

4,367

 

 

 

1,193

 

 

 

354

 

 

 

—

 

 

 

5,914

 

Net Interest Income

 

 

10,874

 

 

 

2,124

 

 

 

(354

)

 

 

—

 

 

 

12,644

 

Gain on sales of loans

 

 

214

 

 

 

242

 

 

 

—

 

 

 

—

 

 

 

456

 

Other noninterest income

 

 

1,862

 

 

 

50

 

 

 

1,158

 

 

 

—

 

 

 

3,070

 

Net Revenue

 

 

12,950

 

 

 

2,416

 

 

 

804

 

 

 

—

 

 

 

16,170

 

Provision for credit losses

 

 

506

 

 

 

158

 

 

 

—

 

 

 

—

 

 

 

664

 

Noninterest expense

 

 

10,360

 

 

 

1,282

 

 

 

744

 

 

 

—

 

 

 

12,386

 

Income (loss) before taxes

 

 

2,084

 

 

 

976

 

 

 

60

 

 

 

—

 

 

 

3,120

 

Income tax expense (benefit)

 

 

317

 

 

 

205

 

 

 

13

 

 

 

—

 

 

 

535

 

Net Income (loss)

 

$

1,767

 

 

$

771

 

 

$

47

 

 

$

—

 

 

$

2,585

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

(10

)

 

$

17

 

 

$

—

 

 

$

—

 

 

$

7

 

Depreciation and amortization

 

 

345

 

 

 

95

 

 

 

123

 

 

 

—

 

 

 

563

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 2022

 

 

 

Community Banking

 

 

Marine Lending

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

10,406

 

 

$

1,103

 

 

$

—

 

 

$

—

 

 

$

11,509

 

Interest Expense

 

 

316

 

 

 

54

 

 

 

—

 

 

 

—

 

 

 

370

 

Net Interest Income

 

 

10,090

 

 

 

1,049

 

 

 

—

 

 

 

—

 

 

 

11,139

 

Gain on sales of loans

 

 

131

 

 

 

347

 

 

 

—

 

 

 

—

 

 

 

478

 

Other noninterest income

 

 

1,830

 

 

 

14

 

 

 

921

 

 

 

—

 

 

 

2,765

 

Net Revenue

 

 

12,051

 

 

 

1,410

 

 

 

921

 

 

 

—

 

 

 

14,382

 

Provision for credit losses

 

 

416

 

 

 

124

 

 

 

—

 

 

 

—

 

 

 

540

 

Noninterest expense

 

 

8,549

 

 

 

625

 

 

 

749

 

 

 

—

 

 

 

9,923

 

Income (loss) before taxes

 

 

3,086

 

 

 

661

 

 

 

172

 

 

 

—

 

 

 

3,919

 

Income tax expense (benefit)

 

 

494

 

 

 

139

 

 

 

36

 

 

 

—

 

 

 

669

 

Net Income (loss)

 

$

2,592

 

 

$

522

 

 

$

136

 

 

$

—

 

 

$

3,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

307

 

 

$

8

 

 

$

16

 

 

$

—

 

 

$

331

 

Depreciation and amortization

 

 

354

 

 

 

42

 

 

 

51

 

 

 

—

 

 

 

447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Community Banking

 

 

Marine Lending

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

Total assets at March 31, 2023

 

$

1,492,308

 

 

$

263,240

 

 

$

1,174

 

 

$

—

 

 

$

1,756,722

 

Total assets at December 31, 2022

 

$

1,377,461

 

 

$

237,595

 

 

$

1,661

 

 

$

—

 

 

$

1,616,717