v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Segment Reporting
16.
SEGMENT REPORTING

Bancshares is a bank holding company. Bancshares operates one banking subsidiary, the Bank. The Bank reporting unit is the only reportable segment of the Company. The Bank conducts a general commercial banking business and offers banking services such as demand, savings, individual retirement account and time deposits, personal and commercial loans, safe deposit box services and remote deposit capture. The Bank provides a wide range of commercial banking services to small- and medium-sized businesses, property managers, business executives, professionals and other individuals. The Bank also performs indirect lending through third-party retailers and currently conducts this lending in 17 states. Other than this indirect lending program, the Bank derives its revenue primarily in the southeast United States. The Bank does not have any customers that produce revenues of 10% or more.

The Company's chief operating decision makers (the "CODM") consist of a group of senior executive officers of Bancshares and the Bank that includes the chief executive officer, the chief financial officer, the chief retail, operations and technology officer, the chief risk officer, the chief commercial lending officer, and the chief consumer lending officer.

The CODM uses net income to evaluate income generated from segment assets in deciding whether to reinvest profits into the Bank segment or into other parts of the entity, such as for acquisitions or to pay dividends. Net income is used to monitor budget versus actual results. The CODM also uses net income in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation.

The accounting policies of the Bank segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the Bank segment and decides how to allocate resources based on segment net income that also is reported on the consolidated statement of operations as consolidated net income. The measure of segment assets is reported on the consolidated balance sheet as total consolidated assets.

The table below provides information related to the Company's Bank operating segment for the three and six months ended June 30, 2026 and 2025:

 

 

Bank Segment

 

 

 

For the three months ended June 30,

 

 

For the six months ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(Dollars in Thousands)

 

 

(Dollars in Thousands)

 

Income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

14,657

 

 

$

14,854

 

 

$

29,597

 

 

$

28,872

 

Non-interest income

 

 

1,318

 

 

 

849

 

 

 

2,158

 

 

 

1,724

 

Total income

 

 

15,975

 

 

 

15,703

 

 

 

31,755

 

 

 

30,596

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

5,157

 

 

 

5,378

 

 

 

10,882

 

 

 

10,499

 

Provision for credit losses

 

 

939

 

 

 

2,717

 

 

 

1,193

 

 

 

3,245

 

Salaries and employee benefits

 

 

3,898

 

 

 

3,945

 

 

 

7,712

 

 

 

7,681

 

Net occupancy and equipment

 

 

1,016

 

 

 

937

 

 

 

1,987

 

 

 

1,812

 

Computer services

 

 

457

 

 

 

421

 

 

 

794

 

 

 

833

 

Insurance expense and assessments

 

 

408

 

 

 

366

 

 

 

823

 

 

 

750

 

Fees for professional services

 

 

310

 

 

 

470

 

 

 

638

 

 

 

685

 

Postage, stationery and supplies

 

 

134

 

 

 

140

 

 

 

275

 

 

 

289

 

Telephone/data communication

 

 

212

 

 

 

186

 

 

 

461

 

 

 

385

 

Collection and recoveries

 

 

99

 

 

 

96

 

 

 

178

 

 

 

166

 

Directors fees

 

 

126

 

 

 

101

 

 

 

246

 

 

 

194

 

Software amortization

 

 

156

 

 

 

107

 

 

 

302

 

 

 

215

 

Other real estate/foreclosure expense, net

 

 

44

 

 

 

24

 

 

 

95

 

 

 

44

 

Other segment items (1)

 

 

783

 

 

 

651

 

 

 

1,473

 

 

 

1,308

 

Provision for income taxes

 

 

483

 

 

 

9

 

 

 

998

 

 

 

563

 

Total expense

 

 

14,222

 

 

 

15,548

 

 

 

28,057

 

 

 

28,669

 

Segment net income

 

$

1,753

 

 

$

155

 

 

$

3,698

 

 

$

1,927

 

(1) Other segment items includes advertising expense, travel and business development expense, and life insurance expense.