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Business Segments
 9 Months Ended
Sep. 30, 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 the 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.

Significant Expense Categories. Significant segment expenses reviewed regularly by the CODM and included in segment profit measures are separately presented. For the three and nine months ended September 30, 2025 and 2024, these significant approximate expenses included:

Community Banking: Salaries and employee benefits ($4.16 million and $11.92 million for the three and nine months ended September 30, 2025; and $3.66 million and $10.81 million for the three and nine months ended September 30, 2024); data processing ($381 thousand and $1.98 million in 2025; and $794 thousand and $2.35 million in 2024); professional and other outside expenses ($689 thousand and $3.059 million in 2025; and $645thousand and $1.98 million in 2024); equipment ($664 thousand and $1.94 million in 2025; and $618 thousand and $1.80 million in 2024); and occupancy ($447 thousand and $1.48 million in 2025; and $446 thousand and $1.40 million in 2024).

Mortgage Banking: Salaries and employee benefits ($919 thousand and $2.44 million in 2025; and $835 thousand and $2.16 million in 2024); credit-related expenses ($158 thousand and $509 thousand in 2025; and $152 thousand and $457 thousand in 2024); and occupancy costs ($39 thousand and $98 thousand in 2025; and $25 thousand and $86 thousand in 2024).

Investment Advisory: Salaries and employee benefits ($432 thousand and $1.29 million in 2025; and $427 thousand and $1.29 million in 2024); and amortization of intangible assets ($140 thousand and $420 thousand in both 2025 and 2024).

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 allowance, were $653.3 million at September 30, 2025, compared to $636.6 million at December 31, 2024, and $627.1 million at September 30, 2024. Deposits totaled $922.1 million at September 30, 2025, $882.4 million at December 31, 2024, and $909.5 million at September 30, 2024.

Investment Advisory: Assets under management (AUM) were $984.7 million at September 30, 2025, compared to $854.0 million at December 31, 2024, and $842.8 million at September 30, 2024.

 

Note 7 – Business Segments (continued)

Business Segments as of the Three Months Ended

September 30, 2025

Dollars in Thousands

Community Banking

Mortgage Banking

Investment Advisory

Holding Company

Eliminations (1)

Consolidated

Interest income

$           11,771

$               -

$                -

$                      -

$                     -

$                 11,771

Interest expense

3,437

-

-

68

(34)

3,471

Net interest income

8,334

-

-

(68)

34

8,300

Gains on sales of loans

-

1,242

-

-

-

1,242

Wealth management fees

-

-

1,362

-

-

1,362

Other noninterest income

1,594

-

-

2,835

(2,864)

1,565

Net revenue

9,928

1,242

1,362

2,767

(2,830)

12,469

Less:

Provision for credit losses

91

-

-

-

-

91

Noninterest expense:

Salaries and employee benefits

4,164

919

432

-

1

5,516

Occupancy

447

39

33

-

4

523

Equipment

664

19

14

-

-

697

Supplies

139

6

8

-

-

153

Professional and other outside expenses

689

-

13

23

-

725

Data processing

381

-

-

-

-

381

Marketing

228

3

1

17

-

249

Credit expense

58

158

-

-

-

216

FDIC insurance expense

132

-

-

-

-

132

Amortization of intangibles

-

-

140

-

-

140

Other

448

(51)

31

-

-

428

Total noninterest expense

7,350

1,093

672

40

5

9,160

Segment income before income taxes

2,487

149

690

2,727

(2,835)

3,218

Allocated income tax expense (benefit)

349

32

110

(25)

-

466

Segment net income

$             2,138

$           117

$           580

$               2,752

$             (2,835)

$                   2,752

Segment assets at September 30, 2025

$      1,007,040

$        3,992

$      10,331

$          102,021

$         (103,259)

$            1,020,125

Supplemental Data at September 30, 2025:

Total loans held for investment, net

$         653,288

$               -

$                -

$                      -

$                     -

$               653,288

Total deposits

922,113

-

-

-

(2,317)

919,796

Assets under management

-

-

984,747

-

-

984,747

(1)Primarily intercompany service fees and dividends eliminated in consolidation.


‎

Note 7 – Business Segments (continued)

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 and nine months ended September 30, 2025 and 2024 (dollars in thousands).

Business Segments as of the Three Months Ended

September 30, 2024

Dollars in Thousands

Community Banking

Mortgage Banking

Investment Advisory

Holding Company

Eliminations (1)

Consolidated

Interest income

$           11,563

$               -

$                -

$                      -

$                     -

$                 11,563

Interest expense

3,920

-

-

174

(40)

4,054

Net interest income

7,643

-

-

(174)

40

7,509

Gains on sales of loans

-

1,326

-

-

-

1,326

Wealth management fees

-

-

1,244

-

-

1,244

Other noninterest income

1,277

-

-

2,155

(2,179)

1,253

Net revenue

8,920

1,326

1,244

1,981

(2,139)

11,332

Less:

Provision for credit losses

92

-

-

-

-

92

Noninterest expense:

Salaries and employee benefits

3,658

835

427

-

-

4,920

Occupancy

446

25

27

-

16

514

Equipment

618

12

10

-

-

640

Supplies

116

5

10

-

-

131

Professional and other outside expenses

645

-

22

21

-

688

Data processing

794

-

-

-

-

794

Marketing

202

2

4

12

-

220

Credit expense

38

152

-

-

-

190

FDIC insurance expense

94

-

-

-

-

94

Amortization of intangibles

-

-

140

-

-

140

Other

419

1

24

1

-

445

Total noninterest expense

7,030

1,032

664

34

16

8,776

Segment income before income taxes

1,798

294

580

1,947

(2,155)

2,464

Allocated income tax expense (benefit)

334

62

122

(44)

-

474

Segment net income

$             1,464

$           232

$           458

$               1,991

(2,155)

$                   1,990

Segment assets at September 30, 2024

$         992,773

$        5,280

$      10,943

$          106,281

(107,214)

$            1,008,063

Supplemental Data at September 30, 2024:

Total loans held for investment, net

$         627,112

$               -

$                -

$                      -

$                     -

$               627,112

Total deposits

909,460

-

-

-

(2,566)

906,894

Assets under management

-

-

842,775

-

-

842,775

(1)Primarily intercompany service fees and dividends eliminated in consolidation.

Note 7 – Business Segments (continued)

Business Segments as of the Nine Months Ended

September 30, 2025

Dollars in Thousands

Community Banking

Mortgage Banking

Investment Advisory

Holding Company

Eliminations (1)

Consolidated

Interest income

$ 34,643

$   -

$ -

$ -

$  -

$   34,643

Interest expense

9,917

-

-

407

50

10,374

Net interest income

24,726

-

-

(407)

(50)

24,269

Gains on sales of loans

-

3,668

-

-

-

3,668

Wealth management fees

-

-

3,917

-

-

3,917

Other noninterest income

4,032

-

-

6,672

(6,762)

3,942

Net revenue

28,758

3,668

3,917

6,265

(6,812)

35,796

Less:

Recovery of credit losses

(301)

-

-

-

-

(301)

Noninterest expense:

Salaries and employee benefits

11,915

2,444

1,291

-

-

15,650

Occupancy

1,484

98

98

-

(90)

1,590

Equipment

1,941

47

33

-

-

2,021

Supplies

422

15

26

-

-

463

Professional and other outside expenses

3,059

-

74

61

-

3,194

Data processing

1,984

-

-

-

-

1,984

Marketing

630

5

11

38

-

684

Credit expense

156

509

-

-

-

665

FDIC insurance expense

394

-

-

-

-

394

Amortization of intangibles

-

-

420

-

-

420

Other

1,257

31

87

1

-

1,376

Total noninterest expense

23,242

3,149

2,040

100

(90)

28,441

Segment income before income taxes

5,766

519

1,878

6,165

(6,672)

7,656

Allocated income tax expense

949

110

431

(133)

-

1,357

Segment net income

$   4,817

$      409

$    1,447

$      6,298

$      (6,672)

$ 6,299

Segment assets at September 30, 2025

$ 1,007,040

$   3,992

$  10,331

$   102,021

$ (103,259)

$     1,020,125

Supplemental Data at September 30, 2025:

Total loans held for investment, net

$   653,288

$   -

$ -

$ -

$  -

$ 653,288

Total deposits

922,113

-

-

-

(2,317)

919,796

Assets under management

-

-

984,747

-

-

984,747

(1)Primarily intercompany service fees and dividends eliminated in consolidation.


‎

Note 7 – Business Segments (continued)

Business Segments as of the Nine Months Ended

September 30, 2024

Dollars in Thousands

Community Banking

Mortgage Banking

Investment Advisory

Holding Company

Eliminations (1)

Consolidated

Interest income

$     33,007

$   -

$     -

$ -

$   -

$   33,007

Interest expense

10,934

-

-

523

-

11,457

Net interest income

22,073

-

-

(523)

-

21,550

Gains on sales of loans

-

3,526

-

-

-

3,526

Wealth management fees

-

-

3,583

-

-

3,583

Other noninterest income

4,274

-

-

6,715

(6,777)

4,212

Net revenue

26,347

3,526

3,583

6,192

(6,777)

29,288

Less:

Recovery of credit losses

(584)

-

-

-

-

(584)

Noninterest expense:

Salaries and employee benefits

10,808

2,163

1,285

-

-

14,256

Occupancy

1,400

86

79

-

(72)

1,493

Equipment

1,804

44

31

-

-

1,879

Supplies

355

15

27

-

-

397

Professional and other outside expenses

1,980

-

71

74

-

2,125

Data processing

2,352

-

-

-

-

2,352

Marketing

577

2

10

(108)

-

481

Credit expense

155

457

-

-

-

612

FDIC insurance expense

329

-

-

-

-

329

Amortization of intangibles

-

-

420

-

-

420

Other

1,160

18

79

1

-

1,258

Total noninterest expense

20,920

2,785

2,002

(33)

(72)

25,602

Segment income before income taxes

6,011

741

1,581

6,225

(6,705)

7,853

Allocated income tax expense (benefit)

1,140

156

332

(101)

1,527

Segment net income

$  4,871

$    585

$  1,249

$   6,326

$    (6,705)

$     6,326

Segment assets at September 30, 2024

$   992,773

$ 5,280

$ 10,943

$    106,281

(107,214)

$   1,008,063

Supplemental Data at September 30, 2024:

Total loans held for investment, net

$   627,112

$   -

$     -

$ -

$   -

$ 627,112

Total deposits

909,460

-

-

-

(2,566)

906,894

Assets under management

-

-

842,775

-

-

842,775

(1)Primarily intercompany service fees and dividends eliminated in consolidation.