v3.25.2
Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segments

(17) Segments:

 

The Company is divided into two reportable segments: Commercial Banking and Mortgage Banking. Commercial Banking provides a full range of loan and deposit products to individual consumers and businesses in all markets through retail lending, deposit services, online banking mobile banking, private banking, commercial lending, commercial real estate lending, agricultural lending, and other banking services. Mortgage banking provides residential mortgage banking products through five offices in Illinois and one office in Wisconsin through our Mortgage Banking Company. The majority of the loans are sold with servicing released.

 

Financial information for each business segment reflects that which is specifically identifiable. Income taxes are allocated based on the effective federal tax rate adjusted for any tax-exempt activity. All tax-exempt activity and provision have been fully allocated to the commercial banking segment. Measurement of performance of business segments is based on the management structure of the Company and is not necessarily comparable with similar information for any other financial institution. Information presented is also not necessarily indicative of the segments’ operations if they were independent entities.

 

 

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)

 

(17) Segments (continued):

 

Principally, all of the net assets of the Company are involved in the commercial banking segment. Goodwill of approximately $6 million resulting from acquisitions has been assigned to the commercial banking segment, and goodwill of approximately $2 million has been assigned to the mortgage banking segment as a result of First State Mortgage’s formation. Assets assigned to the mortgage banking primarily consist of mortgage loans held for sale and net premises and equipment.

 

The Company’s chief operating decision maker is comprised of the Chief Executive Officer of the Company, the Chief Executive Officer of First State Bank, and Chief Executive Officer/Chief Operating Officer of First State Mortgage. The individuals consider net interest income, noninterest income, and budget-to-actual variances on a monthly basis for profit measures when making decisions about allocating capital and personnel to the operating segment.

 

Selected financial information by business segment is as follows for the three months ended June 30, 2025:

 

Schedule of Business Segment

Three Months Ended

June 30, 2025

  Commercial   Mortgage Banking   Eliminations   Total 
                 
Net interest income  $12,198   $60   $(14)  $12,244 
Recovery for credit losses   (113)   -    -    (113)
Mortgage banking revenues   298    2,988    24    3,310 
All other noninterest income   1,348    -    -    1,348 
Noninterest expenses   9,247    3,015    (40)   12,222 
Income (loss) before income tax expense   4,790    33    (30)   4,793 
Income tax expense (benefit)   1,265    21    -    1,286 
Net income (loss)   3,525    12    (30)   3,507 

 

Selected financial information by business segment is as follows for the six months ended June 30, 2025:

 

Six Months Ended

June 30, 2025

  Commercial   Mortgage Banking   Eliminations   Total 
                 
Net interest income  $23,738   $166   $(22)  $23,882 
Recovery for credit losses   388    -    -    388 
Mortgage banking revenues   635    4,816    37    5,488 
All other noninterest income   2,766    -    -    2,766 
Noninterest expenses   17,963    5,640    (81)   23,522 
Income (loss) before income tax expense   8,950    (658)   (66)   8,226 
Income tax expense (benefit)   2,341    (176)   -    2,165 
Net income (loss)   6,609    (482)   (66)   6,061 
                     

 

 

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)

 

(17) Segments (continued):

 

Selected financial information by business segment is as follows for the three months ended June 30, 2024:

 

Three Months Ended

June 30, 2024

  Commercial   Mortgage Banking   Eliminations   Total 
                 
Net interest income  $10,544   $88   $(14)  $10,618 
Recovery for credit losses   100    -    -    100 
Mortgage banking revenues   239    2,457    22    2,718 
All other noninterest income   1,399    -    -    1,399 
Noninterest expenses   8,758    2,833    (40)   11,551 
Income (loss) before income tax expense   3,404    (288)   (32)   3,084 
Income tax expense (benefit)   864    (85)   -    779 
Net income (loss)   2,540    (203)   (32)   2,305 

 

Selected financial information by business segment is as follows for the six months ended June 30, 2024:

 

Six Months Ended

June 30, 2024

  Commercial   Mortgage Banking   Eliminations   Total 
                 
Net interest income  $20,901   $217   $(21)  $21,097 
Recovery for credit losses   (1,187)   -    -    (1,187)
Mortgage banking revenues   415    4,032    36    4,483 
All other noninterest income   2,647    -    -    2,647 
Noninterest expenses   17,366    5,455    (81)   22,740 
Income (loss) before income tax expense   7,946    (1,206)   (66)   6,674 
Income tax expense (benefit)   2,040    (346)   -    1,694 
Net income (loss)   5,906    (860)   (66)   4,980