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Business Segments
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Business Segments

NOTE 16. 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 nine months ended September 30, 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 $185.9 million and $210.1 million at September 30, 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 September 30, 2025 and December 31, 2024 and for three and nine months ended September 30, 2025 and 2024, which are included within the Consolidated Balance Sheets and Consolidated Statements of Income.

 

 

 

Three Months Ended

 

 

 

September 30, 2025

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

23,429

 

 

$

2,504

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

25,933

 

Interest Expense

 

 

7,466

 

 

 

914

 

 

 

—

 

 

 

354

 

 

 

—

 

 

 

8,734

 

Net Interest Income (Expense)

 

 

15,963

 

 

 

1,590

 

 

 

—

 

 

 

(354

)

 

 

—

 

 

 

17,199

 

Gain on sales of loans

 

 

1,012

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,012

 

Other noninterest income

 

 

2,284

 

 

 

—

 

 

 

1,869

 

 

 

—

 

 

 

—

 

 

 

4,153

 

Net Revenue (Expense)

 

 

19,259

 

 

 

1,590

 

 

 

1,869

 

 

 

(354

)

 

 

—

 

 

 

22,364

 

Provision for credit losses

 

 

551

 

 

 

561

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,112

 

Salaries and employee benefits

 

 

8,115

 

 

 

—

 

 

 

576

 

 

 

26

 

 

 

—

 

 

 

8,717

 

Occupancy expenses

 

 

667

 

 

 

—

 

 

 

24

 

 

 

—

 

 

 

—

 

 

 

691

 

Professional fees

 

 

394

 

 

 

—

 

 

 

—

 

 

 

99

 

 

 

—

 

 

 

493

 

Data processing fees

 

 

450

 

 

 

—

 

 

 

19

 

 

 

—

 

 

 

—

 

 

 

469

 

Other noninterest expense

 

 

3,657

 

 

 

96

 

 

 

220

 

 

 

1

 

 

 

—

 

 

 

3,974

 

Total Noninterest Expenses

 

 

13,283

 

 

 

96

 

 

 

839

 

 

 

126

 

 

 

—

 

 

 

14,344

 

Income (loss) before taxes

 

 

5,425

 

 

 

933

 

 

 

1,030

 

 

 

(480

)

 

 

—

 

 

 

6,908

 

Income tax expense (benefit)

 

 

1,011

 

 

 

198

 

 

 

216

 

 

 

(101

)

 

 

—

 

 

 

1,324

 

Net Income (Loss)

 

$

4,414

 

 

$

735

 

 

$

814

 

 

$

(379

)

 

$

—

 

 

$

5,584

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

354

 

 

$

—

 

 

$

26

 

 

$

—

 

 

$

—

 

 

$

380

 

Depreciation and amortization

 

 

265

 

 

 

—

 

 

 

41

 

 

 

16

 

 

 

—

 

 

 

322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

September 30, 2024

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

20,626

 

 

$

3,060

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

23,686

 

Interest Expense

 

 

8,730

 

 

 

1,445

 

 

 

—

 

 

 

354

 

 

 

—

 

 

 

10,529

 

Net Interest Income (Expense)

 

 

11,896

 

 

 

1,615

 

 

 

—

 

 

 

(354

)

 

 

—

 

 

 

13,157

 

Gain on sales of loans

 

 

627

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

627

 

Other noninterest income

 

 

3,109

 

 

 

—

 

 

 

1,515

 

 

 

—

 

 

 

—

 

 

 

4,624

 

Net Revenue (Expense)

 

 

15,632

 

 

 

1,615

 

 

 

1,515

 

 

 

(354

)

 

 

—

 

 

 

18,408

 

Provision for (recovery of) credit losses

 

 

1,609

 

 

 

(65

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,544

 

Salaries and employee benefits

 

 

7,084

 

 

 

—

 

 

 

439

 

 

 

25

 

 

 

—

 

 

 

7,548

 

Occupancy expenses

 

 

509

 

 

 

—

 

 

 

21

 

 

 

—

 

 

 

—

 

 

 

530

 

Professional fees

 

 

345

 

 

 

(3

)

 

 

—

 

 

 

66

 

 

 

—

 

 

 

408

 

Data processing fees

 

 

676

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

679

 

Other noninterest expense

 

 

3,343

 

 

 

117

 

 

 

264

 

 

 

1

 

 

 

—

 

 

 

3,725

 

Total Noninterest Expenses

 

 

11,957

 

 

 

114

 

 

 

727

 

 

 

92

 

 

 

—

 

 

 

12,890

 

Income (loss) before taxes

 

 

2,066

 

 

 

1,566

 

 

 

788

 

 

 

(446

)

 

 

—

 

 

 

3,974

 

Income tax expense (benefit)

 

 

145

 

 

 

328

 

 

 

166

 

 

 

(89

)

 

 

—

 

 

 

550

 

Net Income (Loss)

 

$

1,921

 

 

$

1,238

 

 

$

622

 

 

$

(357

)

 

$

—

 

 

$

3,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

231

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

231

 

Depreciation and amortization

 

 

431

 

 

 

—

 

 

 

32

 

 

 

17

 

 

 

—

 

 

$

480

 

 

 

Nine Months Ended

 

 

 

September 30, 2025

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

66,383

 

 

$

7,867

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

74,250

 

Interest Expense

 

 

23,806

 

 

 

3,148

 

 

 

—

 

 

 

1,063

 

 

 

—

 

 

 

28,017

 

Net Interest Income (Expense)

 

 

42,577

 

 

 

4,719

 

 

 

—

 

 

 

(1,063

)

 

 

—

 

 

 

46,233

 

Gain on sales of loans

 

 

2,545

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,545

 

(Loss) on the sale of securities

 

 

(12,425

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(12,425

)

Other noninterest income

 

 

6,122

 

 

 

—

 

 

 

5,286

 

 

 

—

 

 

 

—

 

 

 

11,408

 

Net Revenue (Expense)

 

 

38,819

 

 

 

4,719

 

 

 

5,286

 

 

 

(1,063

)

 

 

—

 

 

 

47,761

 

Provision for credit losses

 

 

2,722

 

 

 

291

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,013

 

Salaries and employee benefits

 

 

22,086

 

 

 

—

 

 

 

1,577

 

 

 

78

 

 

 

—

 

 

 

23,741

 

Occupancy expenses

 

 

1,886

 

 

 

—

 

 

 

65

 

 

 

—

 

 

 

—

 

 

 

1,951

 

Professional fees

 

 

1,414

 

 

 

10

 

 

 

—

 

 

 

273

 

 

 

—

 

 

 

1,697

 

Data processing fees

 

 

1,598

 

 

 

—

 

 

 

54

 

 

 

—

 

 

 

—

 

 

 

1,652

 

Other noninterest expense

 

 

10,350

 

 

 

316

 

 

 

602

 

 

 

23

 

 

 

—

 

 

 

11,291

 

Total Noninterest Expenses

 

 

37,334

 

 

 

326

 

 

 

2,298

 

 

 

374

 

 

 

—

 

 

 

40,332

 

(Loss) income before taxes

 

 

(1,237

)

 

 

4,102

 

 

 

2,988

 

 

 

(1,437

)

 

 

—

 

 

 

4,416

 

Income tax (benefit) expense

 

 

(640

)

 

 

863

 

 

 

627

 

 

 

(314

)

 

 

—

 

 

 

536

 

Net (Loss) Income

 

$

(597

)

 

$

3,239

 

 

$

2,361

 

 

$

(1,123

)

 

$

—

 

 

$

3,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

1,153

 

 

$

—

 

 

$

26

 

 

$

—

 

 

$

—

 

 

$

1,179

 

Depreciation and amortization

 

 

1,106

 

 

 

—

 

 

 

98

 

 

 

50

 

 

 

—

 

 

 

1,254

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

September 30, 2024

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

57,625

 

 

$

9,702

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

67,327

 

Interest Expense

 

 

24,239

 

 

 

4,297

 

 

 

—

 

 

 

1,063

 

 

 

—

 

 

 

29,599

 

Net Interest Income (Expense)

 

 

33,386

 

 

 

5,405

 

 

 

—

 

 

 

(1,063

)

 

 

—

 

 

 

37,728

 

Gain on sales of loans

 

 

1,280

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,280

 

Other noninterest income

 

 

7,512

 

 

 

—

 

 

 

4,244

 

 

 

—

 

 

 

—

 

 

 

11,756

 

Net Revenue (Expense)

 

 

42,178

 

 

 

5,405

 

 

 

4,244

 

 

 

(1,063

)

 

 

—

 

 

 

50,764

 

Provision for credit losses

 

 

1,902

 

 

 

298

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,200

 

Salaries and employee benefits

 

 

20,708

 

 

 

22

 

 

 

1,281

 

 

 

75

 

 

 

—

 

 

 

22,086

 

Occupancy expenses

 

 

1,503

 

 

 

—

 

 

 

66

 

 

 

—

 

 

 

—

 

 

 

1,569

 

Professional fees

 

 

1,201

 

 

 

10

 

 

 

—

 

 

 

214

 

 

 

—

 

 

 

1,425

 

Data processing fees

 

 

1,797

 

 

 

—

 

 

 

5

 

 

 

—

 

 

 

—

 

 

 

1,802

 

Other noninterest expense

 

 

9,727

 

 

 

435

 

 

 

722

 

 

 

11

 

 

 

—

 

 

 

10,895

 

Total Noninterest Expenses

 

 

34,936

 

 

 

467

 

 

 

2,074

 

 

 

300

 

 

 

—

 

 

 

37,777

 

Income (loss) before taxes

 

 

5,340

 

 

 

4,640

 

 

 

2,170

 

 

 

(1,363

)

 

 

—

 

 

 

10,787

 

Income tax expense (benefit)

 

 

466

 

 

 

974

 

 

 

456

 

 

 

(266

)

 

 

—

 

 

 

1,630

 

Net Income (Loss)

 

$

4,874

 

 

$

3,666

 

 

$

1,714

 

 

$

(1,097

)

 

$

—

 

 

$

9,157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

743

 

 

$

—

 

 

$

3

 

 

$

—

 

 

$

—

 

 

$

746

 

Depreciation and amortization

 

 

1,014

 

 

 

—

 

 

 

95

 

 

 

51

 

 

 

—

 

 

 

1,160

 

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

Total assets at September 30, 2025

 

$

1,735,809

 

 

$

193,046

 

 

$

883

 

 

$

2,735

 

 

$

—

 

 

$

1,932,473

 

Total assets at December 31, 2024

 

 

1,645,219

 

 

 

218,055

 

 

 

955

 

 

 

1,986

 

 

 

—

 

 

 

1,866,215