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Business Segments
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Business Segments

NOTE 15. 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 community 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. During the first quarter of 2025 the Company sold available for sale securities with an amortized cost of $99.2 million, which resulted in a net realized pre-tax loss of $12.4 million. This loss on the sale of securities is the main driver of the community banking segment's reported net loss, total noninterest loss and income tax benefit for the three months ended March 31, 2025.

Revenue from marine lending operations consist primarily of net interest income related to commercial and consumer marine vessel 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 $203.5 million and $210.1 million at March 31, 2025 and December 31, 2024, respectively. 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. As such, expenses 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 CODM.

The following tables provide income and asset information as of March 31, 2025 and December 31, 2024 and for three months ended March 31, 2025 and 2024, which are included within the Consolidated Balance Sheets and Consolidated Statements of Operations.

 

 

 

Three Months Ended

 

 

 

March 31, 2025

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

20,796

 

 

$

2,706

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

23,502

 

Interest Expense

 

 

8,616

 

 

 

1,196

 

 

 

—

 

 

 

354

 

 

 

—

 

 

 

10,166

 

Net Interest Income (Expense)

 

 

12,180

 

 

 

1,510

 

 

 

—

 

 

 

(354

)

 

 

—

 

 

 

13,336

 

Gain on sales of loans

 

 

429

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

429

 

(Loss) on the sale of securities

 

 

(12,425

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(12,425

)

Other noninterest income

 

 

1,718

 

 

 

—

 

 

 

1,724

 

 

 

—

 

 

 

—

 

 

 

3,442

 

Net Revenue (Expense)

 

 

1,902

 

 

 

1,510

 

 

 

1,724

 

 

 

(354

)

 

 

—

 

 

 

4,782

 

Provision for (recovery of) credit losses

 

 

1,377

 

 

 

(144

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,233

 

Salaries and employee benefits

 

 

6,695

 

 

 

—

 

 

 

458

 

 

 

26

 

 

 

—

 

 

 

7,179

 

Occupancy expenses

 

 

642

 

 

 

—

 

 

 

20

 

 

 

—

 

 

 

—

 

 

 

662

 

Professional fees

 

 

499

 

 

 

—

 

 

 

—

 

 

 

64

 

 

 

—

 

 

 

563

 

Data processing fees

 

 

530

 

 

 

—

 

 

 

20

 

 

 

—

 

 

 

—

 

 

 

550

 

Other noninterest expense

 

 

3,346

 

 

 

104

 

 

 

185

 

 

 

—

 

 

 

—

 

 

 

3,635

 

Total Noninterest Expenses

 

 

11,712

 

 

 

104

 

 

 

683

 

 

 

90

 

 

 

—

 

 

 

12,589

 

(Loss) income before taxes

 

 

(11,187

)

 

 

1,550

 

 

 

1,041

 

 

 

(444

)

 

 

—

 

 

 

(9,040

)

Income tax (benefit) expense

 

 

(2,506

)

 

 

326

 

 

 

219

 

 

 

(105

)

 

 

—

 

 

 

(2,066

)

Net (Loss) Income

 

$

(8,681

)

 

$

1,224

 

 

$

822

 

 

$

(339

)

 

$

—

 

 

$

(6,974

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

537

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

537

 

Depreciation and amortization

 

 

394

 

 

 

—

 

 

 

32

 

 

 

17

 

 

 

—

 

 

 

443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 2024

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

18,441

 

 

$

3,462

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

21,903

 

Interest Expense

 

 

7,694

 

 

 

1,440

 

 

 

—

 

 

 

354

 

 

 

—

 

 

 

9,488

 

Net Interest Income (Expense)

 

 

10,747

 

 

 

2,022

 

 

 

—

 

 

 

(354

)

 

 

—

 

 

 

12,415

 

Gain on sales of loans

 

 

161

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

161

 

Other noninterest income

 

 

1,863

 

 

 

—

 

 

 

1,456

 

 

 

—

 

 

 

—

 

 

 

3,319

 

Net Revenue (Expense)

 

 

12,771

 

 

 

2,022

 

 

 

1,456

 

 

 

(354

)

 

 

—

 

 

 

15,895

 

Provision for credit losses

 

 

86

 

 

 

389

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

475

 

Salaries and employee benefits

 

 

6,712

 

 

 

22

 

 

 

426

 

 

 

25

 

 

 

—

 

 

 

7,185

 

Occupancy expenses

 

 

546

 

 

 

—

 

 

 

23

 

 

 

—

 

 

 

—

 

 

 

569

 

Professional fees

 

 

418

 

 

 

—

 

 

 

—

 

 

 

88

 

 

 

—

 

 

 

506

 

Data processing fees

 

 

564

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

565

 

Other noninterest expense

 

 

3,134

 

 

 

196

 

 

 

222

 

 

 

—

 

 

 

—

 

 

 

3,552

 

Total Noninterest Expenses

 

 

11,374

 

 

 

218

 

 

 

672

 

 

 

113

 

 

 

—

 

 

 

12,377

 

Income (loss) before taxes

 

 

1,311

 

 

 

1,415

 

 

 

784

 

 

 

(467

)

 

 

—

 

 

 

3,043

 

Income tax expense (benefit)

 

 

116

 

 

 

297

 

 

 

165

 

 

 

(83

)

 

 

—

 

 

 

495

 

Net Income (Loss)

 

$

1,195

 

 

$

1,118

 

 

$

619

 

 

$

(384

)

 

$

—

 

 

$

2,548

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

91

 

 

$

—

 

 

$

3

 

 

$

—

 

 

$

—

 

 

$

94

 

Depreciation and amortization

 

 

338

 

 

 

—

 

 

 

32

 

 

 

17

 

 

 

—

 

 

 

387

 

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

Total assets at March 31, 2025

 

$

1,687,393

 

 

$

209,694

 

 

$

923

 

 

$

6,467

 

 

$

—

 

 

$

1,904,477

 

Total assets at December 31, 2024

 

 

1,645,219

 

 

 

218,055

 

 

 

955

 

 

 

1,986

 

 

 

—

 

 

 

1,866,215