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Business Segments
 6 Months Ended
Jun. 30, 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 June 30, 2023 and December 31, 2022 and for the three and six months ended June 30, 2023 and June 30, 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

 

 

 

June 30, 2023

 

 

 

Community Banking

 

 

Marine Lending

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

16,459

 

 

$

3,905

 

 

$

—

 

 

$

—

 

 

$

20,364

 

Interest Expense

 

 

6,085

 

 

 

1,482

 

 

 

355

 

 

 

—

 

 

 

7,922

 

Net Interest Income

 

 

10,374

 

 

 

2,423

 

 

 

(355

)

 

 

—

 

 

 

12,442

 

Gain on sales of loans

 

 

122

 

 

 

70

 

 

 

—

 

 

 

—

 

 

 

192

 

Other noninterest income

 

 

2,031

 

 

 

(129

)

 

 

1,263

 

 

 

—

 

 

 

3,165

 

Net Revenue

 

 

12,527

 

 

 

2,364

 

 

 

908

 

 

 

—

 

 

 

15,799

 

Provision for credit losses

 

 

446

 

 

 

(43

)

 

 

—

 

 

 

—

 

 

 

403

 

Noninterest expense

 

 

10,756

 

 

 

1,358

 

 

 

841

 

 

 

—

 

 

 

12,955

 

Income (loss) before taxes

 

 

1,325

 

 

 

1,049

 

 

 

67

 

 

 

—

 

 

 

2,441

 

Income tax expense (benefit)

 

 

149

 

 

 

220

 

 

 

14

 

 

 

—

 

 

 

383

 

Net Income (loss)

 

$

1,176

 

 

$

829

 

 

$

53

 

 

$

—

 

 

$

2,058

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

490

 

 

$

19

 

 

$

—

 

 

$

—

 

 

$

509

 

Depreciation and amortization

 

 

218

 

 

 

97

 

 

 

49

 

 

 

—

 

 

 

364

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

June 30, 2022

 

 

 

Community Banking

 

 

Marine Lending

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

11,051

 

 

$

1,596

 

 

$

—

 

 

$

—

 

 

$

12,647

 

Interest Expense

 

 

355

 

 

 

35

 

 

 

338

 

 

 

—

 

 

 

728

 

Net Interest Income

 

 

10,696

 

 

 

1,561

 

 

 

(338

)

 

 

—

 

 

 

11,919

 

Gain on sales of loans

 

 

121

 

 

 

377

 

 

 

—

 

 

 

—

 

 

 

498

 

Other noninterest income

 

 

2,239

 

 

 

51

 

 

 

1,061

 

 

 

—

 

 

 

3,351

 

Net Revenue

 

 

13,056

 

 

 

1,989

 

 

 

723

 

 

 

—

 

 

 

15,768

 

Provision for credit losses

 

 

174

 

 

 

186

 

 

 

—

 

 

 

—

 

 

 

360

 

Noninterest expense

 

 

9,008

 

 

 

662

 

 

 

858

 

 

 

—

 

 

 

10,528

 

Income (loss) before taxes

 

 

3,874

 

 

 

1,141

 

 

 

(135

)

 

 

—

 

 

 

4,880

 

Income tax expense (benefit)

 

 

676

 

 

 

240

 

 

 

(28

)

 

 

—

 

 

 

888

 

Net Income (loss)

 

$

3,198

 

 

$

901

 

 

$

(107

)

 

$

—

 

 

$

3,992

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

77

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

77

 

Depreciation and amortization

 

 

273

 

 

 

51

 

 

 

47

 

 

 

—

 

 

 

371

 

 

 

Six Months Ended

 

 

 

June 30, 2023

 

 

 

Community Banking

 

 

Marine Lending

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

31,700

 

 

$

7,222

 

 

$

—

 

 

$

—

 

 

$

38,922

 

Interest Expense

 

 

10,452

 

 

 

2,675

 

 

 

709

 

 

 

—

 

 

 

13,836

 

Net Interest Income

 

 

21,248

 

 

 

4,547

 

 

 

(709

)

 

 

—

 

 

 

25,086

 

Gain on sales of loans

 

 

336

 

 

 

312

 

 

 

—

 

 

 

—

 

 

 

648

 

Other noninterest income

 

 

3,721

 

 

 

93

 

 

 

2,421

 

 

 

—

 

 

 

6,235

 

Net Revenue

 

 

25,305

 

 

 

4,952

 

 

 

1,712

 

 

 

—

 

 

 

31,969

 

Provision for credit losses

 

 

952

 

 

 

115

 

 

 

—

 

 

 

—

 

 

 

1,067

 

Noninterest expense

 

 

21,116

 

 

 

2,640

 

 

 

1,585

 

 

 

—

 

 

 

25,341

 

Income (loss) before taxes

 

 

3,237

 

 

 

2,197

 

 

 

127

 

 

 

—

 

 

 

5,561

 

Income tax expense (benefit)

 

 

430

 

 

 

461

 

 

 

27

 

 

 

—

 

 

 

918

 

Net Income (loss)

 

$

2,807

 

 

$

1,736

 

 

$

100

 

 

$

—

 

 

$

4,643

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

480

 

 

$

36

 

 

$

—

 

 

$

—

 

 

$

516

 

Depreciation and amortization

 

 

638

 

 

 

192

 

 

 

97

 

 

 

—

 

 

 

927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

June 30, 2022

 

 

 

Community Banking

 

 

Marine Lending

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

21,457

 

 

$

2,699

 

 

$

—

 

 

$

—

 

 

$

24,156

 

Interest Expense

 

 

671

 

 

 

89

 

 

 

338

 

 

 

—

 

 

 

1,098

 

Net Interest Income

 

 

20,786

 

 

 

2,610

 

 

 

(338

)

 

 

—

 

 

 

23,058

 

Gain on sales of loans

 

 

252

 

 

 

724

 

 

 

—

 

 

 

—

 

 

 

976

 

Other noninterest income

 

 

4,099

 

 

 

35

 

 

 

1,982

 

 

 

—

 

 

 

6,116

 

Net Revenue

 

 

25,137

 

 

 

3,369

 

 

 

1,644

 

 

 

—

 

 

 

30,150

 

Provision for credit losses

 

 

590

 

 

 

310

 

 

 

—

 

 

 

—

 

 

 

900

 

Noninterest expense

 

 

17,557

 

 

 

1,287

 

 

 

1,607

 

 

 

—

 

 

 

20,451

 

Income (loss) before taxes

 

 

6,990

 

 

 

1,772

 

 

 

37

 

 

 

—

 

 

 

8,799

 

Income tax expense (benefit)

 

 

1,177

 

 

 

372

 

 

 

8

 

 

 

—

 

 

 

1,557

 

Net Income (loss)

 

$

5,813

 

 

$

1,400

 

 

$

29

 

 

$

—

 

 

$

7,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

384

 

 

$

8

 

 

$

16

 

 

$

—

 

 

$

408

 

Depreciation and amortization

 

 

646

 

 

 

93

 

 

 

79

 

 

 

—

 

 

 

818

 

 

 

Community Banking

 

 

Marine Lending

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

Total assets at June 30, 2023

 

$

1,467,487

 

 

$

307,420

 

 

$

1,809

 

 

$

—

 

 

$

1,776,716

 

Total assets at December 31, 2022

 

$

1,377,461

 

 

$

237,595

 

 

$

1,661

 

 

$

—

 

 

$

1,616,717