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Note 12 - Segment Reporting
 6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 12. 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 three and six months ended June 30, 2025 and 2024, 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 $481 million at the end of the second quarter.

 

 

  

For the Six Months Ended June 30, 2025

 

(in thousands)

 

Community Banking

  

Wealth Management

  

Total

 
             

Interest Income

 $49,046  $140  $49,186 

Interest Expense

  13,187   —   13,187 

Net interest income

 $35,859  $140  $35,999 

Provision for credit losses

  1,743   —   1,743 

Net interest income after provision for credit losses

 $34,116  $140  $34,256 

Noninterest Income:

            

Service charges on deposit accounts

 $2,033  $—  $2,033 

ATM and check card fees

  2,124   —   2,124 

Wealth management fees

  —   1,765   1,765 

Other operating income

  1,578   —   1,578 

Total noninterest income

 $5,735  $1,765  $7,500 

Noninterest Expense:

            

Salaries and employee benefits

 $16,294  $428  $16,722 

Occupancy

  1,999   14   2,013 

Equipment

  2,080   2   2,082 

Legal and professional fees

  1,115   —   1,115 

Data processing expense

  1,193   73   1,266 

Investment management

  —   635   635 

Other operating expense

  9,674   19   9,693 

Total noninterest expense

 $32,355  $1,171  $33,526 

Income before income taxes

 $7,496  $734  $8,230 

Income tax expense

  1,440   141   1,581 

Net income

 $6,056  $593  $6,649 

 

 

  

For the Six Months Ended June 30, 2024

 

(in thousands)

 

Community Banking

  

Wealth Management

  

Total

 
             

Interest Income

 $33,247  $142  $33,389 

Interest Expense

  11,045   —   11,045 

Net interest income

 $22,202  $142  $22,344 

Provision for credit losses

  1,400   —   1,400 

Net interest income after provision for credit losses

 $20,802  $142  $20,944 

Noninterest Income:

            

Service charges on deposit accounts

 $1,266  $—  $1,266 

ATM and check card fees

  1,579   —   1,579 

Wealth management fees

  —   1,762   1,762 

Other operating income

  2,126   —   2,126 

Total noninterest income

 $4,971  $1,762  $6,733 

Noninterest Expense:

            

Salaries and employee benefits

 $11,290  $420  $11,710 

Occupancy

  1,069   14   1,083 

Equipment

  1,280   2   1,282 

Legal and professional fees

  1,576   —   1,576 

Data processing expense

  336   73   409 

Investment management

  —   658   658 

Other operating expense

  3,807   21   3,828 

Total noninterest expense

 $19,358  $1,188  $20,546 

Income before income taxes

 $6,415  $716  $7,131 

Income tax expense

  1,331   149   1,480 

Net income

 $5,084  $567  $5,651 

 

 

  

For the Three Months Ended June 30, 2025

 

(in thousands)

 

Community Banking

  

Wealth Management

  

Total

 
             

Interest Income

 $25,088  $77  $25,165 

Interest Expense

  6,617   —   6,617 

Net interest income

 $18,471  $77  $18,548 

Provision for credit losses

  911   —   911 

Net interest income after provision for credit losses

 $17,560  $77  $17,637 

Noninterest Income:

            

Service charges on deposit accounts

 $1,020  $—  $1,020 

ATM and check card fees

  1,128   —   1,128 

Wealth management fees

  —   867   867 

Other operating income

  874   —   874 

Total noninterest income

 $3,022  $867  $3,889 

Noninterest Expense:

            

Salaries and employee benefits

 $7,834  $199  $8,033 

Occupancy

  937   7   944 

Equipment

  1,056   1   1,057 

Legal and professional fees

  594   —   594 

Data processing expense

  467   37   504 

Investment management

  —   305   305 

Other operating expense

  3,745   9   3,754 

Total noninterest expense

 $14,633  $558  $15,191 

Income before income taxes

 $5,949  $386  $6,335 

Income tax expense

  1,198   86   1,284 

Net income

 $4,751  $300  $5,051 

 

  

For the Three Months Ended June 30, 2024

 

(in thousands)

 

Community Banking

  

Wealth Management

  

Total

 
             

Interest Income

 $16,985  $70  $17,055 

Interest Expense

  5,561   —   5,561 

Net interest income

 $11,424  $70  $11,494 

Provision for credit losses

  400   —   400 

Net interest income after provision for credit losses

 $11,024  $70  $11,094 

Noninterest Income:

            

Service charges on deposit accounts

 $612  $—  $612 

ATM and check card fees

  809   —   809 

Wealth management fees

  —   879   879 

Other operating income

  386   —   386 

Total noninterest income

 $1,807  $879  $2,686 

Noninterest Expense:

            

Salaries and employee benefits

 $5,622  $217  $5,839 

Occupancy

  541   7   548 

Equipment

  689   2   691 

Legal and professional fees

  1,124   —   1,124 

Data processing expense

  127   36   163 

Investment management

  —   330   330 

Other operating expense

  1,951   13   1,964 

Total noninterest expense

 $10,054  $605  $10,659 

Income before income taxes

 $2,777  $344  $3,121 

Income tax expense

  604   75   679 

Net income

 $2,173  $269  $2,442