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Business Segments
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Business Segments

NOTE 16. Business Segments

The Company has three reportable operating segments: community banking, marine lending and wealth management. 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. The wealth management division's net revenues are comprised primarily of income from offering wealth management services and insurance products through third-party service providers.

On August 23, 2023, the Company completed a sale of specific assets from its marine lending segment. As part of the sale, the Company sold its interest in marine vessel floor plan loans totaling $52.8 million, its rights to service loans that had been sold to secondary market investors prior to the date of sale (valued at $595 thousand on balance sheet prior to sale), and other assets that were not individually significant. The Company received total consideration, net of selling expenses, of $53.5 million and recognized a gain of $435 thousand. The assets sold as well as their related revenues and contribution to earnings did not constitute a significant portion of the Company's assets or operating results for the year ended December 31, 2023. Subsequent to the sale of these assets, the Company retained ownership of its marine vessel retail loans which continue to constitute a significant portion of the Company's assets, revenues, and earnings. The Company expects to cease accepting new marine lending business and hold the retained outstanding loans until they are ultimately repaid.

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 following tables provide income and asset information as of June 30, 2024 and December 31, 2023 and for three and six months ended June 30, 2024 and 2023, 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. The Company expects it will continue to evaluate its business segments and internal reporting structure, including the production of discrete financial information to the chief operating decision-maker.

 

 

Three Months Ended

 

 

 

June 30, 2024

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

18,568

 

 

$

3,180

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

21,748

 

Interest Expense

 

 

7,815

 

 

 

1,412

 

 

 

—

 

 

 

355

 

 

 

—

 

 

 

9,582

 

Net Interest Income (Expense)

 

 

10,753

 

 

 

1,768

 

 

 

—

 

 

 

(355

)

 

 

—

 

 

 

12,166

 

Gain on sales of loans

 

 

492

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

492

 

Other noninterest income

 

 

2,453

 

 

 

—

 

 

 

1,350

 

 

 

—

 

 

 

—

 

 

 

3,803

 

Net Revenue (Expense)

 

 

13,698

 

 

 

1,768

 

 

 

1,350

 

 

 

(355

)

 

 

—

 

 

 

16,461

 

Provision for credit losses

 

 

207

 

 

 

(26

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

181

 

Noninterest expense

 

 

11,662

 

 

 

135

 

 

 

618

 

 

 

95

 

 

 

—

 

 

 

12,510

 

Income (loss) before taxes

 

 

1,829

 

 

 

1,659

 

 

 

732

 

 

 

(450

)

 

 

—

 

 

 

3,770

 

Income tax expense (benefit)

 

 

176

 

 

 

349

 

 

 

154

 

 

 

(94

)

 

 

—

 

 

 

585

 

Net Income (Loss)

 

$

1,653

 

 

$

1,310

 

 

$

578

 

 

$

(356

)

 

$

—

 

 

$

3,185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

421

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

421

 

Depreciation and amortization

 

 

245

 

 

 

—

 

 

 

31

 

 

 

17

 

 

 

—

 

 

 

293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

June 30, 2023

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

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 (Expense)

 

 

10,374

 

 

 

2,423

 

 

 

—

 

 

 

(355

)

 

 

—

 

 

 

12,442

 

Gain on sales of loans

 

 

122

 

 

 

70

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

192

 

Other noninterest income

 

 

1,859

 

 

 

43

 

 

 

1,263

 

 

 

—

 

 

 

—

 

 

 

3,165

 

Net Revenue (Expense)

 

 

12,355

 

 

 

2,536

 

 

 

1,263

 

 

 

(355

)

 

 

—

 

 

 

15,799

 

Provision for credit losses

 

 

446

 

 

 

(43

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

403

 

Noninterest expense

 

 

10,756

 

 

 

1,358

 

 

 

670

 

 

 

171

 

 

 

—

 

 

 

12,955

 

Income (loss) before taxes

 

 

1,153

 

 

 

1,221

 

 

 

593

 

 

 

(526

)

 

 

—

 

 

 

2,441

 

Income tax expense (benefit)

 

 

113

 

 

 

256

 

 

 

125

 

 

 

(111

)

 

 

—

 

 

 

383

 

Net Income (Loss)

 

$

1,040

 

 

$

965

 

 

$

468

 

 

$

(415

)

 

$

—

 

 

$

2,058

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

490

 

 

$

19

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

509

 

Depreciation and amortization

 

 

218

 

 

 

97

 

 

 

32

 

 

 

17

 

 

 

—

 

 

 

364

 

 

 

 

Six Months Ended

 

 

 

June 30, 2024

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

37,018

 

 

$

6,642

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

43,660

 

Interest Expense

 

 

15,509

 

 

 

2,852

 

 

 

—

 

 

 

709

 

 

 

—

 

 

 

19,070

 

Net Interest Income (Expense)

 

 

21,509

 

 

 

3,790

 

 

 

—

 

 

 

(709

)

 

 

—

 

 

 

24,590

 

Gain on sales of loans

 

 

653

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

653

 

Other noninterest income

 

 

4,385

 

 

 

—

 

 

 

2,728

 

 

 

—

 

 

 

—

 

 

 

7,113

 

Net Revenue (Expense)

 

 

26,547

 

 

 

3,790

 

 

 

2,728

 

 

 

(709

)

 

 

—

 

 

 

32,356

 

Provision for credit losses

 

 

293

 

 

 

363

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

656

 

Noninterest expense

 

 

22,979

 

 

 

353

 

 

 

1,347

 

 

 

208

 

 

 

—

 

 

 

24,887

 

Income (loss) before taxes

 

 

3,275

 

 

 

3,074

 

 

 

1,381

 

 

 

(917

)

 

 

—

 

 

 

6,813

 

Income tax expense (benefit)

 

 

321

 

 

 

646

 

 

 

290

 

 

 

(177

)

 

 

—

 

 

 

1,080

 

Net Income (Loss)

 

$

2,954

 

 

$

2,428

 

 

$

1,091

 

 

$

(740

)

 

$

—

 

 

$

5,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

512

 

 

$

—

 

 

$

3

 

 

$

—

 

 

$

—

 

 

$

515

 

Depreciation and amortization

 

 

583

 

 

 

—

 

 

 

63

 

 

 

34

 

 

 

—

 

 

 

680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

June 30, 2023

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

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 (Expense)

 

 

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 (Expense)

 

 

25,305

 

 

 

4,952

 

 

 

2,421

 

 

 

(709

)

 

 

—

 

 

 

31,969

 

Provision for credit losses

 

 

952

 

 

 

115

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,067

 

Noninterest expense

 

 

21,116

 

 

 

2,640

 

 

 

1,273

 

 

 

312

 

 

 

—

 

 

 

25,341

 

Income (loss) before taxes

 

 

3,237

 

 

 

2,197

 

 

 

1,148

 

 

 

(1,021

)

 

 

—

 

 

 

5,561

 

Income tax expense (benefit)

 

 

440

 

 

 

461

 

 

 

242

 

 

 

(225

)

 

 

—

 

 

 

918

 

Net Income (Loss)

 

$

2,797

 

 

$

1,736

 

 

$

906

 

 

$

(796

)

 

$

—

 

 

$

4,643

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

480

 

 

$

36

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

516

 

Depreciation and amortization

 

 

638

 

 

 

192

 

 

 

63

 

 

 

34

 

 

 

—

 

 

 

927

 

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

Total assets at June 30, 2024

 

$

1,542,490

 

 

$

245,861

 

 

$

1,019

 

 

$

1,035

 

 

$

—

 

 

$

1,790,405

 

Total assets at December 31, 2023

 

$

1,562,600

 

 

$

261,011

 

 

$

1,080

 

 

$

906

 

 

$

—

 

 

$

1,825,597