v3.26.1
Note 12 - Segment Reporting
3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 12. Segment Reporting

The Company has two reportable segments. Each reportable segment is a strategic business unit that offers different products and services. They are managed separately, because each segment appeals to different markets and, accordingly, require different technology and marketing strategies. The accounting policies of the segments are the same as those described in the summary of significant accounting policies provided earlier in this report.

 

The reportable segments are:

 

 

Community Banking - The Community Banking segment involves making loans and generating deposits from individuals, businesses, and charitable organizations. Loan fee income, service charges from deposit accounts, and other non-interest-related fees, such as fees for debit cards and ATM usage and fees for brokered mortgage services, generates income for the Community Banking segment.

 

Wealth Management Services – Wealth Management Services offers corporate trustee services, trust and estate administration, IRA administration and custody services. Revenue for this segment is generated from administration, service and custody fees, as well as, management fees which are derived from assets under management. Investment management services currently are offered through in-house and third-party managers. 

 

The Company's chief operating decision maker (CODM) is the President and Chief Operating Officer of the Bank. The CODM uses income, operating expenses and net income to evaluate income generated from the operating segments. Net income is used to monitor budget versus actual results and profitability. Financials of the operating segments are reviewed monthly to assess the performance of the segments.

 

Segment information for the three months ended March 31, 2026 and 2025, is shown in the following tables. Note that asset information is not reported below, as the assets of the Company are reported at the Bank level. Assets under management by Wealth Management Services were $457 million at the end of the first quarter 2026.

 

  

For the Three Months Ended March 31, 2026

 

(in thousands)

 

Community Banking

  

Wealth Management

  

Total

 
             

Interest Income

 $24,240  $89  $24,329 

Interest Expense

  5,653      5,653 

Net interest income

 $18,587  $89  $18,676 

Provision for credit losses

  450      450 

Net interest income after provision for credit losses

 $18,137  $89  $18,226 

Noninterest Income:

            

Service charges on deposit accounts

 $924  $  $924 

ATM and check card fees

  1,047      1,047 

Wealth management fees

     911   911 

Other operating income

  942      942 

Total noninterest income

 $2,913  $911  $3,824 

Noninterest Expense:

            

Salaries and employee benefits

 $8,753  $229  $8,982 

Occupancy

  965   7   972 

Equipment

  1,092   1   1,093 

Legal and professional fees

  684   4   688 

Data processing expense

  359   35   394 

Investment management

     295   295 

Other operating expense

  3,518   40   3,558 

Total noninterest expense

 $15,371  $611  $15,982 

Income before income taxes

 $5,679  $389  $6,068 

Income tax expense

  1,105   76   1,181 

Net income

 $4,574  $313  $4,887 

 

  

For the Three Months Ended March 31, 2025

 

(in thousands)

 

Community Banking

  

Wealth Management

  

Total

 
             

Interest Income

 $23,959  $63  $24,022 

Interest Expense

  6,571      6,571 

Net interest income

 $17,388  $63  $17,451 

Provision for credit losses

  832      832 

Net interest income after provision for credit losses

 $16,556  $63  $16,619 

Noninterest Income:

            

Service charges on deposit accounts

 $1,013  $  $1,013 

ATM and check card fees

  996      996 

Wealth management fees

     898   898 

Other operating income

  704      704 

Total noninterest income

 $2,713  $898  $3,611 

Noninterest Expense:

            

Salaries and employee benefits

 $8,457  $232  $8,689 

Occupancy

  1,062   7   1,069 

Equipment

  1,023   1   1,024 

Legal and professional fees

  518   4   522 

Data processing expense

  726   36   762 

Investment management

     320   320 

Other operating expense

  5,942   7   5,949 

Total noninterest expense

 $17,728  $607  $18,335 

Income before income taxes

 $1,541  $354  $1,895 

Income tax expense

  242   55   297 

Net income

 $1,299  $299  $1,598