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Business Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segments

NOTE 27. Business Segments

The Company has three reportable operating segments: community banking, marine lending and wealth management.

The community banking segment offers a wide range of retail and commercial banking services in the form of loan and deposit products. Revenues consist primarily of net interest income related to investments in non-marine loans and securities and

outstanding deposits and borrowings, fees earned on deposit accounts and debit card interchange activity. For the year ended December 31, 2024, non-interest community banking revenue increased, in part, due to the sale of the Company's operating center and branch building in a sales-leaseback transaction, resulting in a realized gain of $3.9 million.

Revenue from marine lending operations consist primarily of net interest income related to commercial and consumer marine vessel retail loans originated through August 2023, at which time the Company ceased accepting new marine lending business. The balance of the marine loan portfolio, which constitutes a significant portion of the Company's assets, revenues, and earnings, totaled $210.1 million at December 31, 2024. This balance will continue to decline as the loans are repaid.

The wealth management segment offers both a trust department and investment services. Trust department services include a full range of personal and retirement plan services, and investment services products include, among other products, annuities, IRA's, life insurance, fixed income investing, and full service or discount brokerage services. Non-deposit investment products are offered through a third-party service provider.

Financial information of the parent company 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 Company's segment structure reflects the financial information and reports used by our chief operating decision maker to make decisions regarding the business, including resource allocations and performance. Our Chief Executive Officer is the chief operating decision maker ("CODM"). We evaluate performance and allocate resources based on the operating income of each operating segment. The CODM uses segment operating income in the annual budget process. The operating income of each operating segment includes the revenues of the segment less expenses that are directly related to those revenues. Operating overhead, shared costs and share-based compensation costs are included in Community Banking.

The following table provides income and asset information as of and for the twelve months ended December 31, 2024 and 2023, which are included within the Consolidated Balance Sheets and Consolidated Statements of Income.

 

 

 

Twelve Months Ended

 

 

 

December 31, 2024

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

78,805

 

 

$

12,516

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

91,321

 

Interest Expense

 

 

33,049

 

 

 

5,628

 

 

 

—

 

 

 

1,417

 

 

 

—

 

 

 

40,094

 

Net Interest Income (Expense)

 

 

45,756

 

 

 

6,888

 

 

 

—

 

 

 

(1,417

)

 

 

—

 

 

 

51,227

 

Gain on sales of loans

 

 

2,141

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,141

 

Other noninterest income

 

 

13,792

 

 

 

—

 

 

 

5,624

 

 

 

—

 

 

 

—

 

 

 

19,416

 

Net Revenue

 

 

61,689

 

 

 

6,888

 

 

 

5,624

 

 

 

(1,417

)

 

 

—

 

 

 

72,784

 

Provision for credit losses

 

 

2,403

 

 

 

148

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,551

 

Salaries and employee benefits

 

 

28,224

 

 

 

—

 

 

 

1,734

 

 

 

101

 

 

 

—

 

 

 

30,059

 

Occupancy expenses

 

 

1,987

 

 

 

—

 

 

 

90

 

 

 

—

 

 

 

—

 

 

 

2,077

 

Professional fees

 

 

1,723

 

 

 

25

 

 

 

—

 

 

 

317

 

 

 

—

 

 

 

2,065

 

Data processing fees

 

 

2,399

 

 

 

—

 

 

 

19

 

 

 

—

 

 

 

—

 

 

 

2,418

 

Other noninterest expense

 

 

13,115

 

 

 

604

 

 

 

980

 

 

 

14

 

 

 

—

 

 

 

14,713

 

Total Noninterest Expenses

 

 

47,448

 

 

 

629

 

 

 

2,823

 

 

 

432

 

 

 

—

 

 

 

51,332

 

Income (loss) before taxes

 

 

11,838

 

 

 

6,111

 

 

 

2,801

 

 

 

(1,849

)

 

 

—

 

 

 

18,901

 

Income tax expense (benefit)

 

 

2,048

 

 

 

1,283

 

 

 

588

 

 

 

(361

)

 

 

—

 

 

 

3,558

 

Net Income (loss)

 

$

9,790

 

 

$

4,828

 

 

$

2,213

 

 

$

(1,488

)

 

$

—

 

 

$

15,343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

1,017

 

 

$

—

 

 

$

2

 

 

$

—

 

 

$

—

 

 

$

1,019

 

Depreciation and amortization

 

 

1,349

 

 

 

—

 

 

 

127

 

 

 

67

 

 

 

—

 

 

 

1,543

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

 

December 31, 2023

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

67,955

 

 

$

15,138

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

83,093

 

Interest Expense

 

 

25,850

 

 

 

5,570

 

 

 

—

 

 

 

1,417

 

 

 

—

 

 

 

32,837

 

Net Interest Income (Expense)

 

 

42,105

 

 

 

9,568

 

 

 

—

 

 

 

(1,417

)

 

 

—

 

 

 

50,256

 

Gain on sales of loans

 

 

1,117

 

 

 

311

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,428

 

Other noninterest income

 

 

7,348

 

 

 

1,078

 

 

 

4,926

 

 

 

—

 

 

 

—

 

 

 

13,352

 

Net Revenue

 

 

50,570

 

 

 

10,957

 

 

 

4,926

 

 

 

(1,417

)

 

 

—

 

 

 

65,036

 

Provision for credit losses

 

 

2,051

 

 

 

(402

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,649

 

Salaries and employee benefits

 

 

26,948

 

 

 

1,854

 

 

 

1,407

 

 

 

97

 

 

 

—

 

 

 

30,306

 

Occupancy expenses

 

 

2,080

 

 

 

3

 

 

 

119

 

 

 

—

 

 

 

—

 

 

 

2,202

 

Professional fees

 

 

1,452

 

 

 

684

 

 

 

—

 

 

 

404

 

 

 

—

 

 

 

2,540

 

Data processing fees

 

 

1,907

 

 

 

—

 

 

 

28

 

 

 

—

 

 

 

—

 

 

 

1,935

 

Other noninterest expense

 

 

12,092

 

 

 

2,565

 

 

 

1,092

 

 

 

22

 

 

 

—

 

 

 

15,771

 

Total Noninterest Expenses

 

 

44,479

 

 

 

5,106

 

 

 

2,646

 

 

 

523

 

 

 

—

 

 

 

52,754

 

Income (loss) before taxes

 

 

4,040

 

 

 

6,253

 

 

 

2,280

 

 

 

(1,940

)

 

 

—

 

 

 

10,633

 

Income tax expense (benefit)

 

 

(103

)

 

 

1,313

 

 

 

479

 

 

 

(413

)

 

 

—

 

 

 

1,276

 

Net Income (loss)

 

$

4,143

 

 

$

4,940

 

 

$

1,801

 

 

$

(1,527

)

 

$

—

 

 

$

9,357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

1,035

 

 

$

36

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,071

 

Depreciation and amortization

 

 

1,573

 

 

 

224

 

 

 

126

 

 

 

67

 

 

 

—

 

 

 

1,990

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

Total assets at December 31, 2024

 

$

1,645,219

 

 

$

218,055

 

 

$

955

 

 

$

1,986

 

 

$

—

 

 

$

1,866,215

 

Total assets at December 31, 2023

 

 

1,562,600

 

 

 

261,011

 

 

 

1,080

 

 

 

906

 

 

 

—

 

 

 

1,825,597