v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting
15.
Segment Reporting

Historically, the Company has operated as a single reportable segment, providing a full range of banking services to retail and commercial customers. However, in accordance with ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, and as the Bank has grown, management reassessed its operating segment structure to enhance transparency in how financial performance is evaluated and resources are allocated by the chief operating decision maker (“CODM”). The updated guidance enhances disclosures by requiring more detailed information on segment profitability and certain key performance metrics used by management. Segments are components of an enterprise that are regularly evaluated by the CODM to allocate resources and assess performance. The Company’s CODM is its Chief Executive Officer.
As a result of this reassessment, beginning with the fiscal year ended December 31, 2024, the Company has determined that it now operates through two reportable segments:
Banking – Provides commercial banking, retail banking, and wealth management services primarily to customers in its market area, offering a broad array of banking and financial services to retail, commercial, and municipal customers. Included in Banking are the revenue and expenses from the wealth management business and the parent holding company. The parent company’s principal activities include the direct and indirect ownership of banking and non-banking subsidiaries, as well as the issuance of debt and equity. The parent company’s principal sources of revenue are the management fees and dividends it receives from its subsidiaries. Banking also includes corporate shared service costs such as the majority of equity compensation expense, as well as other general and administrative shared services costs including pension, retirement plan and supplemental retirement plan costs. Currently there is no allocation of these costs to other operating segments.
Retirement Plan Administration – Includes retirement plan and health savings account recordkeeping and administration, investment management, third-party administration, and actuarial services.
Our CODM reviews actual net income versus budgeted net income to assess segment performance and to make decisions about allocating capital and personnel to the segments. The CODM regularly receives expense information at a level consistent with that disclosed in the Company’s consolidated statements of income.
Reported segments and their financial information are not necessarily comparable to similar information reported by other financial institutions. Additionally, due to interrelationships among the various segments, the information presented is not indicative of how the segments would perform as independent entities. Changes in management structure, allocation methodologies, or procedures may result in future revisions to previously reported segment financial data.
For the three months ended March 31, 2024, the Company only disclosed one reportable segment, as operations were assessed on a consolidated basis. Accordingly, prior year segment data has been retrospectively adjusted to conform to the current period presentation. The Company will continue to evaluate its segment disclosures in accordance with ASU 2023-07 and make necessary adjustments as business operations evolve.
Information about reportable segments and reconciliation of the information to the consolidated financial statements follows:
   
Three Months Ended March 31, 2025
  
(In thousands)
  
Banking
    
Retirement
Plan
Administration
    
All Other(1)
    
Consolidated
  
Net interest income
  
$
107,205
    
$
18
    
$
-
    
$
107,223
  
Provision for loan losses
    
7,554
      
-
      
-
      
7,554
  
Net interest income after provision for loan losses
  
$
99,651
    
$
18
    
$
-
    
$
99,669
  
Noninterest income
                                
Service charges on deposit accounts
  
$
4,243
    
$
-
    
$
-
    
$
4,243
  
Card services income
    
5,317
      
-
      
-
      
5,317
  
Retirement plan administration fees
    
-
      
16,256
      
(398
)
    
15,858
  
Wealth management
    
10,337
      
598
      
11
      
10,946
  
Insurance services
    
-
      
-
      
4,761
      
4,761
  
Bank owned life insurance income
    
3,397
      
-
      
-
      
3,397
  
Net securities (losses) gains
    
(104
)
    
-
      
-
      
(104
)
Other
    
5,613
      
155
      
(2,734
)
    
3,034
  
Total noninterest income
  
$
28,803
    
$
17,009
    
$
1,640
    
$
47,452
  
Noninterest expense
                                
Salaries and employee benefits
  
$
49,548
    
$
8,454
    
$
2,692
    
$
60,694
  
Technology and data services
    
9,801
      
270
      
167
      
10,238
  
Occupancy
    
8,692
      
268
      
67
      
9,027
  
Professional fees and outside services
    
4,815
      
504
      
(367
)
    
4,952
  
Office supplies and postage
    
1,881
      
47
      
14
      
1,942
  
FDIC assessment
    
1,694
      
-
      
-
      
1,694
  
Advertising
    
1,118
      
19
      
1
      
1,138
  
Amortization of intangible assets
    
1,508
      
544
      
59
      
2,111
  
Loan collection and other real estate owned, net
    
659
      
-
      
-
      
659
  
Acquisition expenses
    
1,221
      
-
      
-
      
1,221
  
Other
    
8,540
      
234
      
(2,550
)
    
6,224
  
Total noninterest expense
  
$
89,477
    
$
10,340
    
$
83
    
$
99,900
  
Income before income tax expense
  
$
38,977
    
$
6,687
    
$
1,557
    
$
47,221
  
Income tax expense
    
9,051
      
1,425
      
-
      
10,476
  
Net income
  
$
29,926
    
$
5,262
    
$
1,557
    
$
36,745
  
Goodwill
  
$
324,250
    
$
23,877
    
$
14,536
    
$
362,663
  
Intangible assets, net
    
26,045
      
6,989
      
1,215
      
34,249
  
Total assets
    
15,591,557
      
54,925
      
(1,782,231
)
    
13,864,251
  

(1) Included in All Other is the revenue and expenses from certain other non-bank subsidiaries of the parent, including the insurance subsidiary, along with eliminating amounts that do not meet the definition of an operating segment.

   
Three Months Ended March 31, 2024
  
(In thousands)
  
Banking
    
Retirement
Plan
Administration
    
All Other(1)
    
Consolidated
  
Net interest income
  
$
95,157
    
$
17
    
$
-
    
$
95,174
  
Provision for loan losses
    
5,579
      
-
      
-
      
5,579
  
Net interest income after provision for loan losses
  
$
89,578
    
$
17
    
$
-
    
$
89,595
  
Noninterest income
                                
Service charges on deposit accounts
  
$
4,117
    
$
-
    
$
-
    
$
4,117
  
Card services income
    
5,195
      
-
      
-
      
5,195
  
Retirement plan administration fees
    
-
      
14,656
      
(369
)
    
14,287
  
Wealth management
    
9,187
      
497
      
13
      
9,697
  
Insurance services
    
1
      
-
      
4,387
      
4,388
  
Bank owned life insurance income
    
2,352
      
-
      
-
      
2,352
  
Net securities gains (losses)
    
2,183
      
-
      
-
      
2,183
  
Other
    
5,806
      
133
      
(2,766
)
    
3,173
  
Total noninterest income
  
$
28,841
    
$
15,286
    
$
1,265
    
$
45,392
  
Noninterest expense
                                
Salaries and employee benefits
  
$
45,125
    
$
7,893
    
$
2,686
    
$
55,704
  
Technology and data services
    
9,280
      
302
      
168
      
9,750
  
Occupancy
    
7,758
      
283
      
57
      
8,098
  
Professional fees and outside services
    
4,724
      
469
      
(340
)
    
4,853
  
Office supplies and postage
    
1,758
      
92
      
15
      
1,865
  
FDIC assessment
    
1,735
      
-
      
-
      
1,735
  
Advertising
    
796
      
15
      
1
      
812
  
Amortization of intangible assets
    
1,682
      
468
      
18
      
2,168
  
Loan collection and other real estate owned, net
    
553
      
-
      
-
      
553
  
Acquisition expenses
    
-
      
-
      
-
      
-
  
Other
    
8,526
      
278
      
(2,569
)
    
6,235
  
Total noninterest expense
  
$
81,937
    
$
9,800
    
$
36
    
$
91,773
  
Income before income tax expense
  
$
36,482
    
$
5,503
    
$
1,229
    
$
43,214
  
Income tax expense
    
8,054
      
1,211
      
126
      
9,391
  
Net income
  
$
28,428
    
$
4,292
    
$
1,103
    
$
33,823
  
Goodwill
  
$
324,250
    
$
23,224
    
$
14,377
    
$
361,851
  
Intangible assets, net
    
32,290
      
6,339
      
339
      
38,968
  
Total assets
    
15,050,010
      
39,221
      
(1,650,032
)
    
13,439,199
  

(1) Included in All Other is the revenue and expenses from certain other non-bank subsidiaries of the parent, including the insurance subsidiary, along with eliminating amounts that do not  meet the definition of an operating segment.