v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Segment Reporting
16.
SEGMENT REPORTING

Bancshares is a bank holding company. Bancshares operates one banking subsidiary, the Bank. The Bank reporting unit is the only reportable segment of the Company. The Bank conducts a general commercial banking business and offers banking services such as demand, savings, individual retirement account and time deposits, personal and commercial loans, safe deposit box services and remote deposit capture. The Bank provides a wide range of commercial banking services to small- and medium-sized businesses, property managers, business executives, professionals and other individuals. The Bank also performs indirect lending through third-party retailers and currently conducts this lending in 17 states. Other than this indirect lending program, the Bank derives its revenue primarily in the southeast United States. The Bank does not have any customers that produce revenues of 10% or more.

The Company's chief operating decision makers (the "CODM") consist of a group of senior executive officers of Bancshares and the Bank that includes the chief executive officer, the chief financial officer, the chief retail, operations and technology officer, the chief risk officer, the chief commercial lending officer, and the chief consumer lending officer.

The CODM uses net income to evaluate income generated from segment assets in deciding whether to reinvest profits into the Bank segment or into other parts of the entity, such as for acquisitions or to pay dividends. Net income is used to monitor budget versus actual results. The CODM also uses net income in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation.

The accounting policies of the Bank segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the Bank segment and decides how to allocate resources based on net income that also is reported on the consolidated statement of operations as consolidated net income. The measure of segment assets is reported on the consolidated balance sheet as total consolidated assets.

The table below provides information related to the Company's Bank operating segment for the three and six months ended June 30, 2025 and 2024:

 

 

Bank Segment

 

 

 

For the three months ended June 30,

 

 

For the six months ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(Dollars in Thousands)

 

 

(Dollars in Thousands)

 

Income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

14,854

 

 

$

14,546

 

 

$

28,872

 

 

$

28,823

 

Non-interest income

 

 

849

 

 

 

835

 

 

 

1,724

 

 

 

1,700

 

Total income

 

 

15,703

 

 

 

15,381

 

 

 

30,596

 

 

 

30,523

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

5,378

 

 

 

5,370

 

 

 

10,499

 

 

 

10,607

 

Provision for credit losses

 

 

2,717

 

 

 

—

 

 

 

3,245

 

 

 

—

 

Salaries and employee benefits

 

 

3,945

 

 

 

3,890

 

 

 

7,681

 

 

 

7,978

 

Net occupancy and equipment

 

 

937

 

 

 

954

 

 

 

1,812

 

 

 

1,848

 

Computer services

 

 

421

 

 

 

444

 

 

 

833

 

 

 

887

 

Insurance expense and assessments

 

 

366

 

 

 

414

 

 

 

750

 

 

 

805

 

Fees for professional services

 

 

470

 

 

 

364

 

 

 

685

 

 

 

705

 

Postage, stationery and supplies

 

 

140

 

 

 

136

 

 

 

289

 

 

 

314

 

Telephone/data communication

 

 

186

 

 

 

193

 

 

 

385

 

 

 

385

 

Collection and recoveries

 

 

96

 

 

 

34

 

 

 

166

 

 

 

60

 

Directors fees

 

 

101

 

 

 

85

 

 

 

194

 

 

 

181

 

Software amortization

 

 

107

 

 

 

87

 

 

 

215

 

 

 

177

 

Other real estate/foreclosure expense, net

 

 

24

 

 

 

30

 

 

 

44

 

 

 

61

 

Other expense (1)

 

 

651

 

 

 

641

 

 

 

1,308

 

 

 

1,018

 

Provision for income taxes

 

 

9

 

 

 

612

 

 

 

563

 

 

 

1,263

 

Total expense

 

 

15,548

 

 

 

13,254

 

 

 

28,669

 

 

 

26,289

 

Consolidated net income

 

$

155

 

 

$

2,127

 

 

$

1,927

 

 

$

4,234

 

(1) Other expense includes advertising, travel and business development, and life insurance expense.