v3.26.1
REPORTABLE SEGMENTS
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS

Note 24—REPORTABLE SEGMENTS

The Company’s reportable segments represent the distinct product lines the Company offers and are viewed separately for strategic planning by the Bank President and CEO, who is the Chief Operating Decision Maker (CODM). The CODM regularly reviews the performance of the Company’s four reportable segments, which are detailed below:

 

  · Commercial and retail banking: The Company’s primary business is to provide deposit and lending products and services to its commercial and retail customers.

  · Mortgage Banking: This segment provides mortgage origination services for loans that will be sold to investors in the secondary market and consumer mortgage loans that will be held-for-investment. In the second quarter of 2023, management made the decision to include consumer mortgage held-for-investment loans in this segment. Prior to the second quarter of 2023, consumer mortgage loans held-for-investment were included in the Commercial and Retail Banking segment. Non-interest income for loans held-for-sale and loans held-for-investment is included in Mortgage Banking income and other income, respectively, on the income statement. The Mortgage Banking financial information presented below includes consumer mortgage loans held-for-investment for all periods presented. Beginning in 2023, a provision for credit loss, a cost of funds and other operating costs have been allocated to this segment.

  · Investment advisory and non-deposit: This segment provides investment advisory services and non-deposit products.

  · Corporate: This segment includes the parent company financial information, including interest on parent company debt and dividend income received from First Community Bank (the “Bank”).

 

To monitor the performance of the four reportable segments, the CODM reviews monthly reports for the product lines. These monthly reports include various volume metrics, as well as revenue versus budget, salaries versus budget, and net income. He uses the data reviewed to determine how to allocate future resources. 

 

Segment profit or loss reported to the CODM is segment net income, and segment assets are presented below; intersegment revenues, expenses, and eliminations are reflected in the reconciliation to consolidated results. 

 

The following tables present selected financial information for the Company’s reportable business segments for the years ended December 31, 2025, December 31, 2024 and December 31, 2023.

 

Year ended December 31, 2025
(Dollars in thousands)		  Commercial
and Retail
Banking		   Mortgage
Banking		   Investment
advisory and
non-deposit		   Corporate   Eliminations   Consolidated 
Dividend and Interest Income  $87,761   $9,084   $—   $7,162   $(6,953)  $97,054 
Interest expense   31,141    2,820    —    1,071    —    35,032 
Net interest income  $56,620   $6,264   $—   $6,091   $(6,953)  $62,022 
Provision for credit losses   567    203    —    —    —    770 
Noninterest income   6,110    3,270    7,565    —    —    16,945 
Salaries and employee benefits   23,497    3,430    3,967    1,055    —    31,949 
Other noninterest expense   18,406    1,028    684    1,271    —    21,389 
Total Noninterest expense  $41,903   $4,458   $4,651   $2,326   $—   $53,338 
Net income (loss) before taxes  $20,260   $4,873   $2,914   $3,765   $(6,953)  $24,859 
Income tax expense (benefit)   6,320    —    —    (666)   —    5,654 
Net income (loss)  $13,940   $4,873   $2,914   $4,431   $(6,953)  $19,205 
Year ended December 31, 2024
(Dollars in thousands)		  Commercial
and Retail
Banking		   Mortgage
Banking		   Investment
advisory and
non-deposit		   Corporate   Eliminations   Consolidated 
Dividend and Interest Income  $82,274   $7,111   $—   $5,664   $(5,627)  $89,422 
Interest expense   33,543    2,622    —    1,217    —    37,382 
Net interest income  $48,731   $4,489   $—   $4,447   $(5,627)  $52,040 
Provision for credit losses   351    458    —    —    —    809 
Noninterest income   5,455    2,368    6,181    —    —    14,004 
Salaries and employee benefits   22,321    2,975    3,373    594    —    29,263 
Other noninterest expense   15,896    757    659    890    —    18,202 
Total Noninterest expense  $38,217   $3,732   $4,032   $1,484   $—   $47,465 
Net income before taxes  $15,618   $2,667   $2,149   $2,963   $(5,627)  $17,770 
Income tax expense (benefit)   4,390    —    —    (575)   —    3,815 
Net income  $11,228   $2,667   $2,149   $3,538   $(5,627)  $13,955 

 

Year ended December 31, 2023
(Dollars in thousands)		  Commercial
and Retail
Banking		   Mortgage
Banking		   Investment
advisory and
non-deposit		   Corporate   Eliminations   Consolidated 
Dividend and Interest Income  $68,874   $3,787   $—   $5,393   $(5,357)  $72,697 
Interest expense   21,478    1,140    —    1,187    —    23,805 
Net interest income  $47,396   $2,647   $—   $4,206   $(5,357)  $48,892 
Provision for credit losses   677    452    —    —    —    1,129 
Noninterest income   4,496    1,414    4,511    —    —    10,421 
Salary and benefits   19,864    2,867    2,537    596    —    25,864 
Other non-interest expense   15,272    610    575    823    —    17,280 
Total noninterest expense  $35,136   $3,477   $3,112   $1,419   $—   $43,144 
Net income before taxes  $16,079   $132   $1,399   $2,787   $(5,357)  $15,040 
Income tax expense (benefit)   3,757    —    —    (560)   —    3,197 
Net income  $12,322   $132   $1,399   $3,347   $(5,357)  $11,843 
                               
(Dollars in thousands)  Commercial
and Retail
Banking		   Mortgage
Banking		   Investment
advisory and
non-deposit		   Corporate   Eliminations   Consolidated 
Total Assets as of
December 31, 2025		  $1,895,061   $161,291   $22   $201,180   $(199,822)  $2,057,732 
                               
Total Assets as of
December 31, 2024		  $1,812,215   $144,616   $6   $185,173   $(183,989)  $1,958,021