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Note 12 - Segment Reporting
 9 Months Ended
Sep. 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 Community 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 nine months ended September 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 $497 million at the end of the third quarter 2025.

 

 

  

For the Nine Months Ended September 30, 2025

 

(in thousands)

 

Community Banking

  

Wealth Management

  

Total

 
             

Interest Income

 $74,052  $221  $74,273 

Interest Expense

  19,979   —   19,979 

Net interest income

 $54,073  $221  $54,294 

Provision for credit losses

  1,936   —   1,936 

Net interest income after provision for credit losses

 $52,137  $221  $52,358 

Noninterest Income:

            

Service charges on deposit accounts

 $3,018  $—  $3,018 

ATM and check card fees

  3,460   —   3,460 

Wealth management fees

  —   2,675   2,675 

Other operating income

  2,847   —   2,847 

Total noninterest income

 $9,325  $2,675  $12,000 

Noninterest Expense:

            

Salaries and employee benefits

 $24,576  $633  $25,209 

Occupancy

  3,016   22   3,038 

Equipment

  3,135   3   3,138 

Legal and professional fees

  1,764   11   1,775 

Data processing expense

  1,650   111   1,761 

Investment management

  —   985   985 

Other operating expense

  13,377   25   13,402 

Total noninterest expense

 $47,518  $1,790  $49,308 

Income before income taxes

 $13,944  $1,106  $15,050 

Income tax expense

  2,641   210   2,851 

Net income

 $11,303  $896  $12,199 

 

 
Notes to Consolidated Financial Statements (Unaudited)

 

 

  

For the Nine Months Ended September 30, 2024

 

(in thousands)

 

Community Banking

  

Wealth Management

  

Total

 
             

Interest Income

 $50,615  $218  $50,833 

Interest Expense

  16,740   —   16,740 

Net interest income

 $33,875  $218  $34,093 

Provision for credit losses

  3,100   —   3,100 

Net interest income after provision for credit losses

 $30,775  $218  $30,993 

Noninterest Income:

            

Service charges on deposit accounts

 $1,941  $—  $1,941 

ATM and check card fees

  2,513   —   2,513 

Wealth management fees

  —   2,714   2,714 

Other operating income

  2,768   —   2,768 

Total noninterest income

 $7,222  $2,714  $9,936 

Noninterest Expense:

            

Salaries and employee benefits

 $17,006  $631  $17,637 

Occupancy

  1,646   22   1,668 

Equipment

  2,005   3   2,008 

Legal and professional fees

  2,161   11   2,172 

Data processing expense

  590   109   699 

Investment management

  —   983   983 

Other operating expense

  5,818   20   5,838 

Total noninterest expense

 $29,226  $1,779  $31,005 

Income before income taxes

 $8,771  $1,153  $9,924 

Income tax expense

  1,790   235   2,025 

Net income

 $6,981  $918  $7,899 

 

 

  

For the Three Months Ended September 30, 2025

 

(in thousands)

 

Community Banking

  

Wealth Management

  

Total

 
             

Interest Income

 $25,006  $81  $25,087 

Interest Expense

  6,792   —   6,792 

Net interest income

 $18,214  $81  $18,295 

Provision for credit losses

  193   —   193 

Net interest income after provision for credit losses

 $18,021  $81  $18,102 

Noninterest Income:

            

Service charges on deposit accounts

 $985  $—  $985 

ATM and check card fees

  1,336   —   1,336 

Wealth management fees

  —   910   910 

Other operating income

  1,269   —   1,269 

Total noninterest income

 $3,590  $910  $4,500 

Noninterest Expense:

            

Salaries and employee benefits

 $8,282  $205  $8,487 

Occupancy

  1,017   8   1,025 

Equipment

  1,055   1   1,056 

Legal and professional fees

  649   11   660 

Data processing expense

  457   38   495 

Investment management

  —   350   350 

Other operating expense

  3,703   6   3,709 

Total noninterest expense

 $15,163  $619  $15,782 

Income before income taxes

 $6,448  $372  $6,820 

Income tax expense

  1,201   69   1,270 

Net income

 $5,247  $303  $5,550 

 

 
Notes to Consolidated Financial Statements (Unaudited)

 

  

For the Three Months Ended September 30, 2024

 

(in thousands)

 

Community Banking

  

Wealth Management

  

Total

 
             

Interest Income

 $17,368  $76  $17,444 

Interest Expense

  5,695   —   5,695 

Net interest income

 $11,673  $76  $11,749 

Provision for credit losses

  1,700   —   1,700 

Net interest income after provision for credit losses

 $9,973  $76  $10,049 

Noninterest Income:

            

Service charges on deposit accounts

 $675  $—  $675 

ATM and check card fees

  934   —   934 

Wealth management fees

  —   952   952 

Other operating income

  642   —   642 

Total noninterest income

 $2,251  $952  $3,203 

Noninterest Expense:

            

Salaries and employee benefits

 $5,716  $211  $5,927 

Occupancy

  577   8   585 

Equipment

  725   1   726 

Legal and professional fees

  592   4   596 

Data processing expense

  254   36   290 

Investment management

  —   325   325 

Other operating expense

  2,003   7   2,010 

Total noninterest expense

 $9,867  $592  $10,459 

Income before income taxes

 $2,357  $436  $2,793 

Income tax expense

  459   86   545 

Net income

 $1,898  $350  $2,248