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Business Segments
 3 Months Ended
Mar. 31, 2025
Business Segments [Abstract]  
Business Segments Note 7 – Business Segments

Segment Overview

The Company reports three business segments:

1.Community Banking – Provides loans, deposits, and related banking services to retail and commercial customers primarily in Central Virginia. Revenue is primarily from net interest income.

2.Mortgage Banking – Originates residential mortgage loans for sale into the secondary market, typically with servicing released. Revenue consists mainly of gains on loan sales.

3.Investment Advisory – Offers investment advisory and financial planning services through Pettyjohn, Wood & White, Inc. Revenue is primarily fee-based, tied to assets under management (AUM).

Segments refer business to one another when appropriate. Robert R. Chapman III, President of Financial is our Chief Operating Decision Maker (CODM). The CODM evaluates performance and allocates resources based on segment profit (pre-tax income). Supplemental data regularly reviewed by the CODM includes total loans held for investment, total deposits, and assets under management (AUM), as these metrics provide additional insights into segment performance. Segment accounting policies are consistent with those in the consolidated financial statements.


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Note 7 – Business Segments (continued)

Significant Expense Categories

Consistent with ASU 2023-07, significant segment expenses reviewed regularly by the CODM and included in segment profit measures are separately presented. For the three months ended March 31, 2025, these significant approximate expenses included:

Community Banking: Salaries and employee benefits ($3.738 million), data processing ($820 thousand), professional services ($1.656 million, equipment ($646 thousand) and occupancy ($535 thousand).

Mortgage Banking: Salaries and employee benefits ($622 thousand), credit-related expenses ($131 thousand), and occupancy costs ($32 thousand).

Investment Advisory: Salaries and employee benefits ($417 thousand) and amortization of intangible assets ($140 thousand).

Expenses not identified as significant are presented within "Other segment items" and include general and administrative costs that support the segments' operations, including travel, liability and property insurance, and contribution expenses.

Supplemental Segment Data

Supplemental data regularly reviewed by the CODM includes total loans held for investment, total deposits, and assets under management (AUM), as these metrics provide additional insights into segment performance:

Community Banking: Total loans held for investment, net of allowances, were $642.4 million at March 31,2025 as compared to $636.6 million at December 31, 2024 and $601.1 million at March 31, 2024. Deposits totaled $918.5 million, $889.5 million and $894.6 million as March 31, 2025, December 31, 2024, and March 31, 2024 respectively.

Investment Advisory: AUM decreased to $842.5 million from $854.0 million at December 31, 2024. AUM increased from the March 31, 2024 total of $770.9 million.

Segment financial information, including significant expense categories and supplemental metrics, is presented in the tables below, along with reconciliations to consolidated financial statements for the three months ended March 31, 2025 and 2024.


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Note 7 – Business Segments (continued)

Business Segments as of the Three Months Ended

March 31, 2025

Dollars in Thousands

Community Banking

Mortgage Banking

Investment Advisory

Holding Company

Eliminations

Consolidated

Interest income

$   11,234

$       -

$     -

$     -

$     -

$    11,234

Interest expense

3,344

171

-

3,515

Net interest income

7,890

-

-

(171)

-

7,719

Gains on sales of loans

-

837

-

-

-

837

Other noninterest income

1,221

-

1,255

992

(1,022)

2,446

Net revenue

9,111

837

1,255

821

(1,022)

11,002

Less:

Provision for credit losses

137

-

-

-

-

137

Noninterest expense:

Salaries and employee benefits

3,738

622

417

-

-

4,777

Occupancy

535

32

33

-

(30)

570

Equipment

646

14

9

1

-

670

Supplies

130

4

8

-

-

142

Professional and other outside expenses

1,656

-

37

22

-

1,715

Data processing

820

-

-

-

-

820

Marketing

180

2

3

13

-

198

Credit expense

55

131

-

-

-

186

Other real estate expenses, net

-

-

-

-

-

-

FDIC insurance expense

142

-

-

-

-

142

Amortization of intangibles

-

-

140

-

-

140

Other

400

31

35

-

-

466

Total noninterest expense

8,302

836

682

36

(30)

9,826

Segment income before income taxes

672

1

573

785

(992)

1,039

Allocated income tax expense

98

-

155

(56)

-

197

Segment net income

$        574

$       1

$        418

$ 841

$      (992)

$ 842

Segment assets at March 31, 2025

$ 998,304

$        3,992

$     9,989

$ 107,644

$       (108,203)

$       1,011,726

Supplemental Data:

Total loans held for investment, net

$ 642,388

$       -

$     -

$     -

$     -

$  642,388

Total deposits

$ 918,503

$       -

$     -

$     -

$   (6,820)

$  911,683

Assets under management

$    -

$       -

$ 842,540

$     -

$     -

$  842,540

Business Segments as of the Three Months Ended

March 31, 2024

Dollars in Thousands

Community Banking

Mortgage Banking

Investment Advisory

Holding Company

Eliminations

Consolidated

Interest income

$   10,509

$       -

$     -

$     -

$     -

$    10,509

Interest expense

3,385

-

-

174

-

3,559

Net interest income

7,124

-

-

(174)

-

6,950

Gains on sales of loans

-

927

-

-

$     -

927

Other noninterest income

1,241

-

1,163

2,240

(2,264)

2,380

Net revenue

8,365

927

1,163

2,066

(2,264)

10,257

Less:

(Recovery of) credit losses

(553)

-

-

-

-

(553)

Noninterest expense:

Salaries and employee benefits

3,519

498

428

-

-

4,445

Occupancy

458

33

26

-

(24)

493

Equipment

577

19

11

-

-

607

Supplies

132

4

9

-

-

145

Professional and other outside expenses

741

-

33

27

-

801

Data processing

751

-

-

-

-

751

Marketing

161

-

5

(136)

-

30

Credit expense

72

116

-

-

-

188

Other real estate expenses, net

-

-

-

-

-

-

FDIC insurance expense

109

-

-

-

-

109

Amortization of intangibles

-

-

140

-

-

140

Other

333

12

32

2

-

379

Total noninterest expense

6,853

682

684

(107)

(24)

8,088

Segment income before income taxes

2,065

245

479

2,173

(2,240)

2,722

Allocated income tax expense

448

-

101

(14)

-

535

Segment net income

1,617

245

378

2,187

(2,240)

2,187

Segment assets at March 31, 2024

$ 972,854

$        1,620

$   10,904

$ 103,289

$       (103,776)

$  984,891

Supplemental Data:

Total loans held for investment, net

$ 601,115

$       -

$     -

$     -

$     -

$  601,115

Total deposits

$ 894,562

$       -

$     -

$     -

$   (1,083)

$  893,479

Assets under management

$    -

$       -

$ 770,936

$     -

$     -

$  770,936