SEGMENT REPORTING |
SEGMENT REPORTING The Corporation manages its operations through two primary business segments: core banking and WMG. The core banking segment provides revenues by attracting deposits from the general public and using such funds to originate consumer, commercial, commercial real estate, and residential mortgage loans, primarily in the Corporation’s local markets, and to invest in securities. The WMG services segment provides revenues by providing trust and investment advisory services to clients. The Corporation's reportable segments are determined by the Executive Management Team (EMT), who collectively are designated Chief Operating Decision Maker (CODM). The CODM evaluates the financial performance of each business segment, which is based upon the business segment's net income. Components of net income for the business segments that are reviewed by the CODM include net interest income, provision for credit losses, non-interest income, non-interest expense and income tax expense. The CODM, in conjunction with management committees (such as ALCO and Corporate loan committees) evaluates financial performance to make decisions related to the products and services that are offered, pricing, and the allocation of resources for each business segment.
Accounting policies for the segments are the same as those described in Note 1 of the Corporation’s 2024 Annual Report on Form 10-K, which was filed with the SEC on March 14, 2025. Summarized financial information concerning the Corporation’s reportable segments and the reconciliation to the Corporation’s consolidated results are shown in the following table. Income taxes are allocated based on the separate taxable income of each entity and indirect overhead expenses are allocated based on reasonable and equitable allocations applicable to the reportable segment. The Holding Company and CFS columns below includes income and expenses related to insurance products, mutual funds, and brokerage services (in thousands). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | | Core Banking | | WMG | | Holding Company and CFS | | Inter-Segment Eliminations | | Consolidated Totals | Interest and dividend income | | $ | 33,033 | | | $ | — | | | $ | 2 | | | $ | (1) | | | $ | 33,034 | | Interest expense | | 12,020 | | | — | | | 207 | | | (1) | | | 12,226 | | Net interest income | | 21,013 | | | — | | | (205) | | | — | | | 20,808 | | Provision for credit losses | | 1,145 | | | — | | | — | | | — | | | 1,145 | | Net interest income after provision for credit losses | | 19,868 | | | — | | | (205) | | | — | | | 19,663 | | Non-interest income | | (13,968) | | | 2,993 | | | 274 | | | (4) | | | (10,705) | | Non-interest expenses: | | | | | | | | | | | | | | | | | | | | | | Compensation expense | | 8,078 | | | 1,320 | | | 180 | | | — | | | 9,578 | | Net occupancy expense | | 1,363 | | | 68 | | | 4 | | | (4) | | | 1,431 | | Furniture and equipment expense | | 418 | | | 21 | | | 16 | | | — | | | 455 | | Data processing & software expense | | 2,251 | | | 308 | | | 4 | | | — | | | 2,563 | | Other non-interest expenses | | 3,331 | | | 250 | | | 161 | | | — | | | 3,742 | | Total non-interest expense | | 15,441 | | | 1,967 | | | 365 | | | (4) | | | 17,769 | | Income before income tax expense (benefit) | | (9,541) | | | 1,026 | | | (296) | | | — | | | (8,811) | | Income tax expense (benefit) | | (2,496) | | | 224 | | | (87) | | | — | | | (2,359) | | Segment net income (loss) | | $ | (7,045) | | | $ | 802 | | | $ | (209) | | | $ | — | | | $ | (6,452) | | Supplemental Information: | | | | | | | | | | | Total assets as of June 30, 2025 | | $ | 2,815,812 | | | $ | 2,932 | | | $ | 279,056 | | | $ | (245,312) | | | $ | 2,852,488 | | Capital expenditures | | $ | 360 | | | $ | — | | | $ | — | | | $ | — | | | $ | 360 | | Depreciation expense (1) | | $ | 458 | | | $ | 16 | | | $ | — | | | $ | — | | | $ | 474 | | | | | | | | | | | | |
(1) Included in net occupancy and furniture and equipment expense in the table above. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2024 | | | Core Banking | | WMG | | Holding Company, and CFS | | Inter-Segment Eliminations | | Consolidated Totals | Interest and dividend income | | $ | 31,377 | | | $ | — | | | $ | 11 | | | $ | (2) | | | $ | 31,386 | | Interest expense | | 13,627 | | | — | | | — | | | (2) | | | 13,625 | | Net interest income | | 17,750 | | | — | | | 11 | | | — | | | 17,761 | | Provision for credit losses | | 879 | | | — | | | — | | | — | | | 879 | | Net interest income after provision for credit losses | | 16,871 | | | — | | | 11 | | | — | | | 16,882 | | Non-interest income | | 2,495 | | | 2,860 | | | 244 | | | (1) | | | 5,598 | | Non-interest expenses: | | | | | | | | | | — | | | | | | | | | | | | | Compensation expense | | 7,252 | | | 1,227 | | | 190 | | | — | | | 8,669 | | Net occupancy expense | | 1,390 | | | 55 | | | 1 | | | (1) | | | 1,445 | | Furniture and equipment expense | | 361 | | | 23 | | | 13 | | | — | | | 397 | | Data processing & software expense | | 2,042 | | | 251 | | | 4 | | | — | | | 2,297 | | Other non-interest expenses | | 3,065 | | | 181 | | | 165 | | | — | | | 3,411 | | Total non-interest expense | | 14,110 | | | 1,737 | | | 373 | | | (1) | | | 16,219 | | Income before income tax expense (benefit) | | 5,256 | | | 1,123 | | | (118) | | | — | | | 6,261 | | Income tax expense (benefit) | | 1,077 | | | 238 | | | (41) | | | — | | | 1,274 | | Segment net income (loss) | | $ | 4,179 | | | $ | 885 | | | $ | (77) | | | $ | — | | | $ | 4,987 | | Supplemental Information: | | | | | | | | | | | Total assets as of June 30, 2024 | | $ | 2,748,945 | | | $ | 3,532 | | | $ | 202,472 | | | $ | (199,136) | | | $ | 2,755,813 | | Capital expenditures | | 1,019 | | | — | | | — | | | — | | | 1,019 | | Depreciation expense (1) | | 457 | | | 14 | | | — | | | — | | | 471 | | | | | | | | | | | |
(1) Included in net occupancy and furniture and equipment expense in the table above. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | | Core Banking | | WMG | | Holding Company, and CFS | | Inter-Segment Eliminations | | Consolidated Totals | Interest and dividend income | | $ | 64,731 | | | $ | — | | | $ | 3 | | | $ | (2) | | | $ | 64,732 | | Interest expense | | 23,902 | | | — | | | 207 | | | (2) | | | 24,107 | | Net interest income | | 40,829 | | | — | | | (204) | | | — | | | 40,625 | | Provision for credit losses | | 2,237 | | | — | | | — | | | — | | | 2,237 | | Net interest income after provision for credit losses | | 38,592 | | | — | | | (204) | | | — | | | 38,388 | | Non-interest income | | (11,152) | | | 5,860 | | | 483 | | | (7) | | | (4,816) | | Non-interest expenses: | | | | | | | | | | | | | | | | | | | | | | Compensation expense | | 15,427 | | | 2,733 | | | 436 | | | — | | | 18,596 | | Net occupancy expense | | 2,833 | | | 131 | | | 7 | | | (7) | | | 2,964 | | Furniture and equipment expense | | 769 | | | 40 | | | 19 | | | — | | | 828 | | Data processing & software expense | | 4,461 | | | 621 | | | 15 | | | — | | | 5,097 | | Other non-interest expenses | | 6,605 | | | 356 | | | 250 | | | — | | | 7,211 | | Total non-interest expense | | 30,095 | | | 3,881 | | | 727 | | | (7) | | | 34,696 | | Income before income tax expense (benefit) | | (2,655) | | | 1,979 | | | (448) | | | — | | | (1,124) | | Income tax expense (benefit) | | (991) | | | 432 | | | (136) | | | — | | | (695) | | Segment net income (loss) | | $ | (1,664) | | | $ | 1,547 | | | $ | (312) | | | $ | — | | | $ | (429) | | Supplemental Information: | | | | | | | | | | | Total assets as of June 30, 2025 | | $ | 2,815,812 | | | $ | 2,932 | | | $ | 279,056 | | | $ | (245,312) | | | $ | 2,852,488 | | Capital expenditures | | 688 | | | — | | | — | | | — | | | 688 | | Depreciation expense (1) | | 910 | | | 31 | | | — | | | — | | | 941 | | | | | | | | | | | | |
1 Included in net occupancy and furniture and equipment expense in the table above. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2024 | | | Core Banking | | WMG | | Holding Company, and CFS | | Inter-Segment Eliminations | | Consolidated Totals | Interest and dividend income | | 62,588 | | | — | | | 21 | | | (4) | | | 62,605 | | Interest expense | | 26,759 | | | — | | | — | | | (4) | | | 26,755 | | Net interest income | | 35,829 | | | — | | | 21 | | | — | | | 35,850 | | Provision for credit losses | | (1,161) | | | — | | | — | | | — | | | (1,161) | | Net interest income after provision for credit losses | | 36,990 | | | — | | | 21 | | | — | | | 37,011 | | Non-interest income | | 5,239 | | | 5,563 | | | 456 | | | (3) | | | 11,255 | | Non-interest expenses: | | | | | | | | | | | | | | | | | | | | | | Compensation expense | | 14,508 | | | 2,664 | | | 363 | | | — | | | 17,535 | | Net occupancy expense | | 2,820 | | | 118 | | | 3 | | | (3) | | | 2,938 | | Furniture and equipment expense | | 737 | | | 42 | | | 16 | | | — | | | 795 | | Data processing & software expense | | 4,334 | | | 526 | | | 10 | | | — | | | 4,870 | | Other non-interest expenses | | 6,250 | | | 282 | | | 247 | | | — | | | 6,779 | | Total non-interest expense | | 28,649 | | | 3,632 | | | 639 | | | (3) | | | 32,917 | | Income before income tax expense (benefit) | | 13,580 | | | 1,931 | | | (162) | | | — | | | 15,349 | | Income tax expense (benefit) | | 2,948 | | | 420 | | | (56) | | | — | | | 3,312 | | Segment net income (loss) | | $ | 10,632 | | | $ | 1,511 | | | $ | (106) | | | $ | — | | | $ | 12,037 | | Supplemental Information: | | | | | | | | | | | Total assets as of June 30, 2024 | | 2,748,945 | | | 3,532 | | | 202,472 | | | (199,136) | | | 2,755,813 | | Capital expenditures | | 1,100 | | | — | | | — | | | — | | | 1,100 | | Depreciation expense (1) | | 908 | | | 28 | | | — | | | — | | | 936 | | | | | | | | | | | | |
(1) Included in net occupancy and furniture and equipment expense in the table above.
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