v3.26.1
Segment Information
3 Months Ended
Mar. 31, 2026
Segment Information  
Segment Information

Note 14. Segment Information

The Company, through the Bank, provides a broad range of financial services to individuals and companies through its offices in East and Middle Tennessee, Alabama and Florida. These services include, but not limited to, primary deposit products are interest-bearing demand deposits, savings and money market deposits, and time deposits. Its primary lending products are commercial, residential, and consumer loans. The Company’s operations are managed, and financial performance is evaluated on an organization-wide basis. Accordingly, the Company’s banking and finance operations are not considered by management to constitute more than one reportable operating segment. This single segment is the General Banking Unit.

The Company’s chief operating decision maker (“CODM”) is the Executive Committee. The CODM includes the senior executive management team including the Chief Executive Officer, Chief Financial Officer, Chief Credit Officer, Chief Accounting Officer, Chief People Officer, Chief Risk Officer, and Chief Banking Officer.

The CODM assesses the performance of the General Banking Unit using a variety of figures, metrics and key performance indicators. However, the CODM primarily utilizes net income and net interest income to make business decisions. The CODM monitors these profitability measures at each meeting, and is regularly featured in various investor presentations, earnings releases, and other internal management reports. These performance and profitability measures influence business decisions and the allocation of resources within the General Banking Unit.

The table below provides information about the General Banking Unit. The most significant expenses to the General Banking Unit are deposit and other borrowing interest expense as well as employee compensation (in thousands):

Banking Segment

Three Months Ended March 31, 

2026

2025

Interest income

$

74,270

$

66,376

Interest expense

28,394

28,138

Net interest income

45,876

38,238

Provision for credit losses

4,139

979

Net interest income after provision for credit losses

41,737

37,259

Noninterest income:

Service charges on deposit accounts

1,853

1,736

Gain (loss) on sale of securities, net

1

Mortgage banking

760

493

Investment services

1,796

1,769

Insurance commissions

1,412

Interchange and debit card transaction fees, net

1,418

1,220

Other

2,113

1,967

Total noninterest income

7,941

8,597

Noninterest expense:

Salaries and employee benefits

20,414

19,234

Occupancy and equipment

3,344

3,397

FDIC insurance

750

960

Other real estate and loan related expense

792

658

Advertising and marketing

387

382

Data processing and technology

2,436

2,657

Professional services

1,193

1,368

Amortization of intangibles

457

569

Other

3,142

3,071

Total noninterest expense

32,915

32,296

Income before income tax expense

16,763

13,560

Income tax expense

3,083

2,306

Net income

$

13,680

$

11,254