| OPERATING SEGMENTS |
NOTE 17: OPERATING SEGMENTS The Company’s banking operation is its only operating segment. The banking operation is principally engaged in the business of originating residential and commercial real estate loans, construction loans, commercial business loans and consumer loans and funding these loans by attracting deposits from the general public, accepting brokered deposits and borrowing from the Federal Home Loan Bank and others. The operating results of this segment are regularly reviewed by management to make decisions about resource allocations and to assess performance. The parent holding company does not have any significant operations other than ownership of the Bank, and the parent holding company’s only income is equity in the earnings of the Bank. Our chief executive officer is our chief operating decision maker. Our chief executive officer reviews actual net income versus budgeted net income, as well as comparison to other comparable financial reporting periods, to assess performance on a monthly basis and to make decisions about allocating capital and personnel. Financial results by operating segment (all attributed to the banking segment), including significant expense categories provided to the chief operating decision maker, are detailed below for the three and six months ended June 30, 2025 and 2024. | | | | | | | | | Three Months Ended June 30, | | | 2025 | | 2024 | | | | (In Thousands) | Interest income | | $ | 80,975 | | $ | 80,927 | Interest expense | | | 30,012 | | | 34,109 | Net interest income | | | 50,963 | | | 46,818 | | | | | | | | Credit loss expense | | | (110) | | | (607) | Net interest income after credit loss expense | | | 51,073 | | | 47,425 | | | | | | | | Non-interest Income | | | | | | | Commissions | | | 411 | | | 269 | Overdraft and insufficient funds fees | | | 1,266 | | | 1,230 | Point-of-sale and ATM fee income and service charges | | | 3,444 | | | 3,588 | Net gain on loan sales | | | 893 | | | 1,127 | Late charges and fees on loans | | | 340 | | | 136 | Fees from debit card contracts | | | 368 | | | 346 | Other income | | | 1,490 | | | 3,137 | | | | 8,212 | | | 9,833 | | | | | | | | Non-interest Expense | | | | | | | Salaries and incentives | | | 16,275 | | | 16,216 | Employee benefits | | | 3,730 | | | 3,670 | Net occupancy expense | | | 3,003 | | | 2,967 | Technology, furniture and equipment expense | | | 5,432 | | | 4,874 | Postage | | | 825 | | | 777 | Insurance | | | 1,095 | | | 1,263 | Advertising | | | 705 | | | 891 | Office supplies and printing | | | 238 | | | 236 | Telephone | | | 705 | | | 685 | Legal, audit and other professional fees | | | 929 | | | 1,864 | Expense (income) on other real estate and repossessions | | | (168) | | | 285 | Intangible asset amortization | | | 108 | | | 109 | Travel meals and entertainment | | | 711 | | | 606 | Other operating expenses | | | 1,417 | | | 1,966 | | | | 35,005 | | | 36,409 | | | | | | | | Income Before Income Taxes | | | 24,280 | | | 20,849 | Provision for Income Taxes | | | 4,494 | | | 3,861 | Net Income | | $ | 19,786 | | $ | 16,988 |
| | | | | | | | | Six Months Ended June 30, | | | 2025 | | 2024 | | | | (In Thousands) | Interest income | | $ | 161,218 | | $ | 158,317 | Interest expense | | | 60,921 | | | 66,683 | Net interest income | | | 100,297 | | | 91,634 | | | | | | | | Credit loss expense | | | (458) | | | 23 | Net interest income after credit loss expense | | | 100,755 | | | 91,611 | | | | | | | | Non-interest Income | | | | | | | Commissions | | | 673 | | | 650 | Overdraft and insufficient funds fees | | | 2,481 | | | 2,519 | Point-of-sale and ATM fee income and service charges | | | 6,678 | | | 6,771 | Net gain on loan sales | | | 1,494 | | | 1,804 | Late charges and fees on loans | | | 583 | | | 303 | Fees from debit card contracts | | | 868 | | | 1,101 | Other income | | | 2,025 | | | 3,491 | | | | 14,802 | | | 16,639 | | | | | | | | Non-interest Expense | | | | | | | Salaries and incentives | | | 32,478 | | | 32,078 | Employee benefits | | | 7,656 | | | 7,464 | Net occupancy expense | | | 6,382 | | | 5,985 | Technology, furniture and equipment expense | | | 10,586 | | | 9,695 | Postage | | | 1,756 | | | 1,584 | Insurance | | | 2,260 | | | 2,407 | Advertising | | | 995 | | | 1,241 | Office supplies and printing | | | 504 | | | 503 | Telephone | | | 1,411 | | | 1,406 | Legal, audit and other professional fees | | | 1,967 | | | 3,589 | Expense (income) on other real estate and repossessions | | | (238) | | | 346 | Intangible asset amortization | | | 216 | | | 217 | Travel meals and entertainment | | | 950 | | | 828 | Other operating expenses | | | 2,904 | | | 3,488 | | | | 69,827 | | | 70,831 | | | | | | | | Income Before Income Taxes | | | 45,730 | | | 37,419 | Provision for Income Taxes | | | 8,784 | | | 7,024 | Net Income | | $ | 36,946 | | $ | 30,395 |
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