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Note 26 - Segment Reporting
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 26. Segment Reporting

 

The Company has two reportable segments. Each reportable segment is a strategic business unit that offers different products and services. They are managed separately, because each segment appeals to different markets and, accordingly, require different technology and marketing strategies. The accounting policies of the segments are the same as those described in the summary of significant accounting policies provided earlier in this report.

 

The reportable segments are:

 

 

●

Community Banking - The Community Banking segment involves making loans and generating deposits from individuals, businesses, and charitable organizations. Loan fee income, service charges from deposit accounts, and other non-interest-related fees, such as fees for debit cards and ATM usage and fees for brokered mortgage services, generates income for the Banking segment.

 

 

●

Wealth Management Services – Wealth Management Services offers corporate trustee services, trust and estate administration, IRA administration and custody services. Revenue for this segment is generated from administration, service and custody fees, as well as, management fees which are derived from assets under management. Investment management services currently are offered through in-house and third-party managers. 

 

The Company's chief operating decision maker (CODM) is the President and Chief Operating Officer of the Bank. The CODM uses income, operating expenses and net income to evaluate income generated from the operating segments. Net income is used to monitor budget versus actual results and profitability. Financials of the operating segments are reviewed monthly to assess the performance of the segments.

 

Segment information for the years ended December 31, 2024 and 2023 is shown in the following tables. Note that asset information is not reported below, as the assets of the Company are reported at the Bank level. Assets under management by Wealth Management Services were $471 million in 2024.

 

 

  

2024

 
(in thousands) 

Community Banking

  

Wealth Management

  

Total

 
             

Interest Income

 $76,037  $282  $76,319 

Interest Expense

  23,867   —   23,867 

Net interest income

 $52,170  $282  $52,452 

Provision for credit losses

  7,850   —   7,850 

Net interest income after provision for credit losses

 $44,320  $282  $44,602 

Noninterest Income:

            

Service charges on deposit accounts

 $3,122  $—  $3,122 

ATM and check card fees

  3,305   —   3,305 

Wealth management fees

  —   3,617   3,617 

Other operating income

  6,336   —   6,336 

Total noninterest income

 $12,763  $3,617  $16,380 

Noninterest Expense

            

Salaries and employee benefits

 $24,292  $842  $25,134 

Occupancy

  2,544   29   2,573 

Equipment

  3,127   4   3,131 

Legal and professional fees

  1,974   19   1,993 

Data processing expense

  1,256   148   1,404 

Investment management

  —   1,307   1,307 

Other operating expense

  17,362   30   17,392 

Total noninterest expense

 $50,555  $2,379  $52,934 

Income before income taxes

 $6,528  $1,520  $8,048 

Income tax expense

  878   204   1,082 

Net income

 $5,650  $1,316  $6,966 

 

 

 

             
  

2023

 
(in thousands) 

Community Banking

  

Wealth Management

  

Total

 
             

Interest Income

 $57,423  $296  $57,719 

Interest Expense

  14,306   —   14,306 

Net interest income

 $43,117  $296  $43,413 

Provision for credit losses

  6,150   —   6,150 

Net interest income after provision for credit losses

 $36,967  $296  $37,263 

Noninterest Income:

            

Service charges on deposit accounts

 $2,780  $—  $2,780 

ATM and check card fees

  3,449   —   3,449 

Wealth management fees

  —   3,120   3,120 

Other operating income

  2,435   —   2,435 

Total noninterest income

 $8,664  $3,120  $11,784 

Noninterest Expense

            

Salaries and employee benefits

 $20,221  $818  $21,039 

Occupancy

  2,125   29   2,154 

Equipment

  2,372   5   2,377 

Legal and professional fees

  1,632   15   1,647 

Data processing expense

  925   122   1,047 

Investment management

  —   1,103   1,307 

Other operating expense

  7,645   26   7,671 

Total noninterest expense

 $34,920  $2,118  $37,242 

Income before income taxes

 $10,711  $1,298  $11,805 

Income tax expense

  1,941   240   2,181 

Net income

 $8,770  $1,058  $9,624