v3.25.2
Business Segments
 6 Months Ended
Jun. 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. Consistent with ASU 2023-07, significant segment expenses reviewed regularly by the CODM and included in segment profit measures are separately presented. For the three and six months ended June 30, 2025 and 2024, these significant approximate expenses included:

Community Banking: Salaries and employee benefits ($4.013 million and $7.751 million, in the three and six months ended June 30, 2025; and $3.632 million and $7.151 million, in the three and six months ended June 30, 2024); data processing ($719 thousand and $1.539 million, in 2025; and $748 thousand and $1.499 million, in 2024); professional services ($778 thousand and $2.434 million, in 2025; and $653 thousand and $1.394 million, in 2024); equipment ($631 thousand and $1.277 million, in 2025; and $609 thousand and $1.186 million, in 2024); and occupancy ($502 thousand and $1.037 million, in 2025; and $496 thousand and $954 thousand, in 2024).

Mortgage Banking: Salaries and employee benefits ($903 thousand and $1.525 million, in the three and six months ended June 30, 2025; and $830 thousand and $1.328 million, in the three and six months ended June 30, 2024); credit-related expenses ($220 thousand and $351 thousand, in 2025; and $189 thousand and $305 thousand, in 2024); and occupancy costs ($27 thousand and $59 thousand, in 2025; and $28 thousand and $61 thousand, in 2024).

Investment Advisory: Salaries and employee benefits ($442 thousand and $859 thousand, in the three and six months ended June 30, 2025; and $430 thousand and $858 thousand, in the three and six months ended June 30, 2024); and amortization of intangible assets ($140 thousand and $280 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 $649.1 million at June 30, 2025, compared to $636.6 million at December 31, 2024, and $636.6 million at June 30, 2024. Deposits totaled $915.4 million at June 30, 2025, $882.4 million at December 31, 2024, and $887.1 million at June 30, 2024.


‎

Note 7 – Business Segments (continued)

Investment Advisory: Assets under management (AUM) were $930.0 million at June 30, 2025, compared to $854.0 million at December 31, 2024, and $802.9 million at June 30, 2024.

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 six months ended June 30, 2025 and 2024 (dollars in thousands).

Business Segments as of the Three Months Ended

June 30, 2025

Dollars in Thousands

Community Banking

Mortgage Banking

Investment Advisory

Holding Company

Eliminations

Consolidated

Interest income

$             11,638

$                 -

$               -

$                -

$                      -

$             11,638

Interest expense

3,186

-

-

168

34

3,388

Net interest income

8,452

-

-

(168)

(34)

8,250

Gains on sales of loans

-

1,589

-

-

-

1,589

Other noninterest income

1,217

-

1,300

2,845

(2,876)

2,486

Net revenue

9,669

1,589

1,300

2,677

(2,910)

12,325

Less:

Recovery of credit losses

(528)

-

-

-

-

(528)

Noninterest expense:

Salaries and employee benefits

4,013

903

442

-

(1)

5,357

Occupancy

502

27

32

-

(64)

497

Equipment

631

14

10

(1)

-

654

Supplies

153

5

10

-

-

168

Professional and other outside expenses

778

-

24

16

-

818

Data processing

719

-

-

-

-

719

Marketing

222

-

7

8

-

237

Credit expense

43

220

-

-

-

263

FDIC insurance expense

120

-

-

-

-

120

Amortization of intangibles

-

-

140

-

-

140

Other

409

51

21

1

-

482

Total noninterest expense

7,590

1,220

686

24

(65)

9,455

Segment income before income taxes

2,607

369

614

2,653

(2,845)

3,398

Allocated income tax expense

502

78

166

(52)

-

694

Segment net income

$               2,105

$            291

$           448

$        2,705

$              (2,845)

$               2,704

Segment assets at June 30, 2025

$           996,032

$         3,992

$      11,517

$    104,891

$          (112,190)

$        1,004,242

Supplemental Data at June 30, 2025:

Total loans held for investment, net

$           649,089

$                 -

$               -

$                -

$                      -

$           649,089

Total deposits

915,417

-

-

-

(4,890)

910,527

Assets under management

-

-

929,957

-

-

929,957

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

Note 7 – Business Segments (continued)

Business Segments as of the Three Months Ended

June 30, 2024

Dollars in Thousands

Community Banking

Mortgage Banking

Investment Advisory

Holding Company

Eliminations

Consolidated

Interest income

$             10,935

$                 -

$               -

$                -

$                      -

$             10,935

Interest expense

3,629

-

-

175

40

3,844

Net interest income

7,306

-

-

(175)

(40)

7,091

Gains on sales of loans

-

1,273

-

-

-

1,273

Other noninterest income

1,756

-

1,176

2,320

(2,334)

2,918

Net revenue

9,062

1,273

1,176

2,145

(2,374)

11,282

Less:

(Recovery of) credit losses

(123)

-

-

-

-

(123)

Noninterest expense:

Salaries and employee benefits

3,632

830

430

-

-

4,892

Occupancy

496

28

26

-

(64)

486

Equipment

609

13

10

-

-

632

Supplies

107

6

8

-

-

121

Professional and other outside expenses

653

-

16

26

-

695

Data processing

748

-

-

-

-

748

Marketing

214

-

1

16

-

231

Credit expense

45

189

-

-

-

234

FDIC insurance expense

126

-

-

-

-

126

Amortization of intangibles

-

-

140

-

-

140

Other

408

5

23

(2)

-

434

Total noninterest expense

7,038

1,071

654

40

(64)

8,739

Segment income before income taxes

2,147

202

522

2,105

(2,310)

2,666

Allocated income tax expense

358

94

109

(43)

-

518

Segment net income

$               1,789

$            108

$           413

$        2,148

$              (2,310)

$               2,148

Segment assets at June 30, 2024

$           961,214

$         5,280

$      11,517

$    104,891

$          (104,891)

$           978,011

Supplemental Data at June 30, 2024:

Total loans held for investment, net

$           636,552

$                 -

$               -

$                -

$                      -

$           636,552

Total deposits

887,126

-

-

-

(4,722)

882,404

Assets under management

-

-

802,906

-

-

802,906

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


‎

Note 7 – Business Segments (continued)

Business Segments as of the Six Months Ended

June 30, 2025

Dollars in Thousands

Community Banking

Mortgage Banking

Investment Advisory

Holding Company

Eliminations

Consolidated

Interest income

$ 22,872

$ -

$ -

$ -

$    -

$ 22,872

Interest expense

6,530

-

-

339

34

6,903

Net interest income

16,342

-

-

(339)

(34)

15,969

Gains on sales of loans

-

2,426

-

-

-

2,426

Other noninterest income

2,438

-

2,555

3,837

(3,898)

4,932

Net revenue

18,780

2,426

2,555

3,498

(3,932)

23,327

Less:

Recovery of credit losses

(391)

-

-

-

-

(391)

Noninterest expense:

Salaries and employee benefits

7,751

1,525

859

-

(1)

10,134

Occupancy

1,037

59

65

-

(94)

1,067

Equipment

1,277

28

19

-

-

1,324

Supplies

283

9

18

-

-

310

Professional and other outside expenses

2,434

-

61

38

-

2,533

Data processing

1,539

-

-

-

-

1,539

Marketing

402

2

10

21

-

435

Credit expense

98

351

-

-

-

449

Other real estate expenses, net

-

-

-

-

-

-

FDIC insurance expense

262

-

-

-

-

262

Amortization of intangibles

-

-

280

-

-

280

Other

809

82

56

1

-

948

Total noninterest expense

15,892

2,056

1,368

60

(95)

19,281

Segment income before income taxes

3,279

370

1,187

3,438

(3,837)

4,437

Allocated income tax expense

600

78

321

(108)

-

891

Segment net income

$ 2,679

$    292

$  866

$  3,546

$    (3,837)

$  3,546

Segment assets at June 30, 2025

$    996,032

$ 3,992

$ 11,517

$ 104,891

$    (112,190)

$  1,004,242

Supplemental Data at June 30, 2025:

Total loans held for investment, net

$    649,089

$ -

$ -

$ -

$    -

649,089

Total deposits

915,417

-

-

-

(4,890)

910,527

Assets under management

-

-

929,957

-

-

929,957

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


‎

Note 7 – Business Segments (continued)

Business Segments as of the Six Months Ended

June 30, 2024

Dollars in Thousands

Community Banking

Mortgage Banking

Investment Advisory

Holding Company

Eliminations

Consolidated

Interest income

$ 21,444

$  -

$  -

$ -

$ -

$  21,444

Interest expense

7,014

-

-

349

40

7,403

Net interest income

14,430

-

-

(349)

(40)

14,041

Gains on sales of loans

-

2,200

-

-

-

2,200

Other noninterest income

2,997

-

2,339

4,560

(4,598)

5,298

Net revenue

17,427

2,200

2,339

4,211

(4,638)

21,539

Less:

Recovery of credit losses

(676)

-

-

-

-

(676)

Noninterest expense:

Salaries and employee benefits

7,151

1,328

858

-

-

9,337

Occupancy

954

61

52

-

(88)

979

Equipment

1,186

32

21

-

-

1,239

Supplies

239

10

17

-

-

266

Professional and other outside expenses

1,394

-

49

53

-

1,496

Data processing

1,499

-

-

-

-

1,499

Marketing

375

-

6

(120)

-

261

Credit expense

117

305

-

-

-

422

Other real estate expenses, net

-

-

-

-

-

-

FDIC insurance expense

235

-

-

-

-

235

Amortization of intangibles

-

-

280

-

-

280

Other

741

17

55

-

-

813

Total noninterest expense

13,891

1,753

1,338

(67)

(88)

16,827

Segment income before income taxes

4,212

447

1,001

4,278

(4,550)

5,388

Allocated income tax expense

806

94

210

(57)

-

1,053

Segment net income

$ 3,406

$ 353

$ 791

$ 4,335

$ (4,550)

$ 4,335

Segment assets at June 30, 2024

$ 961,214

$ 5,280

$ 11,517

$ 104,891

$ (104,891)

$ 978,011

Supplemental Data at June 30, 2024:

Total loans held for investment, net

$ 636,552

$ -

$ -

$ -

$ -

$ 636,552

Total deposits

887,126

$ -

$ -

-

(4,722)

882,404

Assets under management

$ -

-

$ 802,906

-

-

$ 802,906

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