v3.26.1
Business Segments
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Business Segments

NOTE 16. Business Segments

The Company has three reportable operating segments: community banking, marine lending and wealth management.

The community banking segment offers a wide range of retail and community banking services in the form of loan and deposit products. Revenues consist primarily of net interest income related to investments in non-marine loans and securities and outstanding deposits and borrowings, fees earned on deposit accounts and debit card interchange activity. During the first quarter of 2025 the Company sold available for sale securities with an amortized cost of $99.2 million, which resulted in a net realized

pre-tax loss of $12.4 million. This loss on the sale of securities is the main driver of the community banking segment's reported net loss, total noninterest loss and income tax benefit for the three months ended March 31, 2025.

Revenue from marine lending operations consist primarily of net interest income related to commercial and consumer marine vessel loans originated through August 2023, at which time the Company ceased accepting new marine lending business. The interest expense allocation is a function of the Bank's internal cost of funds rate and the average loan balance of marine lending. The balance of the marine loan portfolio, which constitutes a significant portion of the Company's assets, revenues, and earnings, totaled $170.2 million and $175.6 million at March 31, 2026 and December 31, 2025, respectively. This balance will continue to decline as the loans are repaid.

The wealth management segment offers both a trust department and investment services. Trust department services include a full range of personal and retirement plan services, and investment services products include, among other products, annuities, IRA's, life insurance, fixed income investing, and full service or discount brokerage services. Non-deposit investment products are offered through a third-party service provider.

Financial information of the parent company is included in the "All Other" category. The parent company's revenue and expenses are comprised primarily of interest expense associated with subordinated debt.

The Company's segment structure reflects the financial information and reports used by our chief operating decision maker to make decisions regarding the business, including resource allocations and performance. Our Chief Executive Officer is the chief operating decision maker ("CODM"). We evaluate performance and allocate resources based on the operating income of each operating segment. The CODM uses segment operating income in the annual budget process. The operating income of each operating segment includes the revenues of the segment less expenses that are directly related to those revenues. Operating overhead, shared costs and share-based compensation costs are included in Community Banking. As such, expenses may not be representative of the costs expected to be incurred if the specific business segments operated as stand-alone entities. The Company expects it will continue to evaluate its business segments and internal reporting structure, including the production of discrete financial information to the CODM.

The following tables provide income and asset information as of March 31, 2026 and December 31, 2025 and for three months ended March 31, 2026 and 2025, which are included within the Consolidated Balance Sheets and Consolidated Statements of Operations.

 

 

 

Three Months Ended

 

 

 

March 31, 2026

 

 

 

Community Banking

 

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

21,594

 

 

 

$

2,232

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

23,826

 

Interest Expense

 

 

6,755

 

 

 

 

814

 

 

 

—

 

 

 

354

 

 

 

—

 

 

 

7,923

 

Net Interest Income (Expense)

 

 

14,839

 

 

 

 

1,418

 

 

 

—

 

 

 

(354

)

 

 

—

 

 

 

15,903

 

Gain on sales of loans

 

 

1,012

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,012

 

Other noninterest income

 

 

2,091

 

 

 

 

—

 

 

 

1,825

 

 

 

—

 

 

 

—

 

 

 

3,916

 

Net Revenue (Expense)

 

 

17,942

 

 

 

 

1,418

 

 

 

1,825

 

 

 

(354

)

 

 

—

 

 

 

20,831

 

Provision for credit losses

 

 

1,942

 

 

 

 

19

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,961

 

Salaries and employee benefits

 

 

7,777

 

 

 

 

—

 

 

 

414

 

 

 

38

 

 

 

—

 

 

 

8,229

 

Occupancy expenses

 

 

643

 

 

 

 

—

 

 

 

23

 

 

 

—

 

 

 

—

 

 

 

666

 

Professional fees

 

 

522

 

 

 

 

2

 

 

 

1

 

 

 

79

 

 

 

—

 

 

 

604

 

Data processing fees

 

 

486

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

486

 

Other noninterest expense

 

 

3,899

 

 

 

 

91

 

 

 

237

 

 

 

—

 

 

 

—

 

 

 

4,227

 

Total Noninterest Expenses

 

 

13,327

 

 

 

 

93

 

 

 

675

 

 

 

117

 

 

 

—

 

 

 

14,212

 

Income (loss) before taxes

 

 

2,673

 

 

 

 

1,306

 

 

 

1,150

 

 

 

(471

)

 

 

—

 

 

 

4,658

 

Income tax expense (benefit)

 

 

525

 

 

 

 

274

 

 

 

242

 

 

 

(123

)

 

 

—

 

 

 

918

 

Net Income (Loss)

 

$

2,148

 

 

 

$

1,032

 

 

$

908

 

 

$

(348

)

 

$

—

 

 

$

3,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

200

 

 

 

$

—

 

 

$

9

 

 

$

—

 

 

$

—

 

 

$

209

 

Depreciation and amortization

 

 

421

 

 

 

 

—

 

 

 

34

 

 

 

17

 

 

 

—

 

 

 

472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 2025

 

 

 

Community Banking

 

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

 

 

(in thousands)

 

Interest Income

 

$

20,796

 

 

 

$

2,706

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

23,502

 

Interest Expense

 

 

8,616

 

 

 

 

1,196

 

 

 

—

 

 

 

354

 

 

 

—

 

 

 

10,166

 

Net Interest Income (Expense)

 

 

12,180

 

 

 

 

1,510

 

 

 

—

 

 

 

(354

)

 

 

—

 

 

 

13,336

 

Gain on sales of loans

 

 

429

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

429

 

(Loss) on the sale of securities

 

 

(12,425

)

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(12,425

)

Other noninterest income

 

 

1,718

 

 

 

 

—

 

 

 

1,724

 

 

 

—

 

 

 

—

 

 

 

3,442

 

Net Revenue (Expense)

 

 

1,902

 

 

—

 

 

1,510

 

 

 

1,724

 

 

 

(354

)

 

 

—

 

 

 

4,782

 

Provision for (recovery of) credit losses

 

 

1,377

 

 

 

 

(144

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,233

 

Salaries and employee benefits

 

 

6,695

 

 

 

 

—

 

 

 

458

 

 

 

26

 

 

 

—

 

 

 

7,179

 

Occupancy expenses

 

 

642

 

 

 

 

—

 

 

 

20

 

 

 

—

 

 

 

—

 

 

 

662

 

Professional fees

 

 

499

 

 

 

 

—

 

 

 

—

 

 

 

64

 

 

 

—

 

 

 

563

 

Data processing fees

 

 

530

 

 

 

 

—

 

 

 

20

 

 

 

—

 

 

 

—

 

 

 

550

 

Other noninterest expense

 

 

3,346

 

 

 

 

104

 

 

 

185

 

 

 

—

 

 

 

—

 

 

 

3,635

 

Total Noninterest Expenses

 

 

11,712

 

 

 

 

104

 

 

 

683

 

 

 

90

 

 

 

—

 

 

 

12,589

 

(Loss) income before taxes

 

 

(11,187

)

 

 

 

1,550

 

 

 

1,041

 

 

 

(444

)

 

 

—

 

 

 

(9,040

)

Income tax (benefit) expense

 

 

(2,506

)

 

 

 

326

 

 

 

219

 

 

 

(105

)

 

 

—

 

 

 

(2,066

)

Net (Loss) Income

 

$

(8,681

)

 

 

$

1,224

 

 

$

822

 

 

$

(339

)

 

$

—

 

 

$

(6,974

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

537

 

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

537

 

Depreciation and amortization

 

 

394

 

 

 

 

—

 

 

 

32

 

 

 

17

 

 

 

—

 

 

$

443

 

 

 

 

 

Community Banking

 

 

Marine Lending

 

 

Wealth Management

 

 

All Other

 

 

Eliminations

 

 

Consolidated

 

Total assets at March 31, 2026

 

$

1,660,826

 

 

$

175,106

 

 

$

824

 

 

$

1,604

 

 

$

—

 

 

$

1,838,360

 

Total assets at December 31, 2025

 

 

1,705,394

 

 

 

181,062

 

 

 

849

 

 

 

1,321

 

 

 

—

 

 

 

1,888,626