v3.26.1
Note 12 - Segment Reporting
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 12 – Segment Reporting

 

The Company has determined that it has two reportable segments: community banking and mortgage banking. The Company's operating segments are presented based on its management structure and management accounting practices. The structure and practices are specific to the Company and therefore, the financial results of the Company's business segments are not necessarily comparable with similar information for other financial institutions.

 

Community Banking

 

The community banking segment provides consumer and business banking products and services to customers primarily within Southeastern Wisconsin.  Within this segment, the following products and services are provided:  (1) lending solutions such as residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; (2) deposit and transactional solutions such as checking, credit, debit and pre-paid cards, online banking and bill pay, and money transfer services; (3) investable funds solutions such as savings, money market deposit accounts, IRA accounts, certificates of deposit, and (4) fixed and variable annuities, insurance as well as trust and investment management accounts.

 

Consumer products include loan and deposit products: mortgage, home equity loans and lines, personal term loans, demand deposit accounts, interest bearing transaction accounts and time deposits. Consumer products also include personal investment services. Business banking products include secured and unsecured lines and term loans for working capital, inventory and general corporate use, commercial real estate construction loans, demand deposit accounts, interest bearing transaction accounts and time deposits.

 

Mortgage Banking

 

The mortgage banking segment provides residential mortgage loans for the primary purpose of sale on the secondary market. Mortgage banking products and services are provided by offices in 24 states with the ability to lend in 48 states.

 

The Company’s chief executive officer has been identified as the chief operating decision maker (“CODM”). Selected financial and descriptive information is reported to the CODM. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The CODM uses the Community Banking and Mortgage Banking segment's net interest income, non-interest income, non-interest expense, and pre-tax income for making operating decisions, allocating resources (including employees, financial, or capital resources), and assessing performance. Based on the reviews of these two segments and other company-wide initiatives, the CODM is informed about allocation of resources to the Holding Company and Other segment.

 

Presented below is the segment information:

 

  

As of or for the three months ended June 30, 2026

 
          

Holding

     
  

Community

  

Mortgage

  

Company and

     
  

Banking

  

Banking

  

Other

  

Consolidated

 
  

(In Thousands)

 
                 

Net interest income

 $15,830  $164  $16  $16,010 

Provision (credit) for credit losses

  248   (12)  -   236 

Net interest income after provision (credit) for credit losses

  15,582   176   16   15,774 
                 

Noninterest income:

  2,020   22,363   (143)  24,240 
                 

Noninterest expenses:

                

Compensation, payroll taxes, and other employee benefits

  5,612   16,565   (203)  21,974 

Occupancy, office furniture and equipment

  942   628   -   1,570 

Advertising

  251   476   -   727 

Data processing

  722   557   -   1,279 

Communications

  105   121   -   226 

Professional fees

  197   103   -   300 

Real estate owned

  27   -   -   27 

Loan processing expense

  -   817   -   817 

Other

  741   1,676   42   2,459 

Total noninterest expenses

  8,597   20,943   (161)  29,379 

Income before income tax expense

  9,005   1,596   34   10,635 

Income tax expense

  1,741   425   7   2,173 

Net income

 $7,264  $1,171  $27  $8,462 
                 

Total Assets

 $2,239,536  $185,807  $(172,584) $2,252,759 

 

  

As of or for the three months ended June 30, 2025

 
          

Holding

     
  

Community

  

Mortgage

  

Company and

     
  

Banking

  

Banking

  

Other

  

Consolidated

 
  

(In Thousands)

 
                 

Net interest income

 $13,640  $53  $15  $13,708 

Provision (credit) for credit losses

  (19)  10   -   (9)

Net interest income after provision (credit) for credit losses

  13,659   43   15   13,717 
                 

Noninterest income:

  1,686   22,643   -   24,329 
                 

Noninterest expenses:

                

Compensation, payroll taxes, and other employee benefits

  5,027   16,312   (218)  21,121 

Occupancy, office furniture and equipment

  920   833   -   1,753 

Advertising

  219   527   -   746 

Data processing

  806   507   -   1,313 

Communications

  99   158   -   257 

Professional fees

  196   303   1   500 

Real estate owned

  (8)  -   -   (8)

Loan processing expense

  -   817   -   817 

Other

  466   1,230   182   1,878 

Total noninterest expenses

  7,725   20,687   (35)  28,377 

Income before income tax expense

  7,620   1,999   50   9,669 

Income tax expense

  1,400   531   11   1,942 

Net income

 $6,220  $1,468  $39  $7,727 
                 

Total Assets

 $2,480,038  $197,497  $(420,975) $2,256,560 

 

  

As of or for the six months ended June 30, 2026

 
          

Holding

     
  

Community

  

Mortgage

  

Company and

     
  

Banking

  

Banking

  

Other

  

Consolidated

 
  

(In Thousands)

 
                 

Net interest income

 $31,056  $378  $39  $31,473 

Provision (credit) for credit losses

  532   (32)  -   500 

Net interest income after provision (credit) for credit losses

  30,524   410   39   30,973 
                 

Noninterest income:

  3,173   41,484   (189)  44,468 
                 

Noninterest expenses:

                

Compensation, payroll taxes, and other employee benefits

  11,187   31,036   (407)  41,816 

Occupancy, office furniture and equipment

  2,045   1,491   -   3,536 

Advertising

  463   881   -   1,344 

Data processing

  1,487   1,047   3   2,537 

Communications

  217   267   -   484 

Professional fees

  425   255   3   683 

Real estate owned

  29   -   -   29 

Loan processing expense

  -   1,846   -   1,846 

Other

  1,339   3,453   187   4,979 

Total noninterest expenses

  17,192   40,276   (214)  57,254 

Income before income tax expense

  16,505   1,618   64   18,187 

Income tax expense

  3,279   435   14   3,728 

Net income

 $13,226  $1,183  $50  $14,459 

 

  

As of or for the six months ended June 30, 2025

 
          

Holding

     
  

Community

  

Mortgage

  

Company and

     
  

Banking

  

Banking

  

Other

  

Consolidated

 
  

(In Thousands)

 
                 

Net interest income

 $26,043  $205  $36  $26,284 

Provision (credit) for credit losses

  (537)  (30)  -   (567)

Net interest income after provision (credit) for credit losses

  26,580   235   36   26,851 
                 

Noninterest income:

  3,034   38,374   18   41,426 
                 

Noninterest expenses:

                

Compensation, payroll taxes, and other employee benefits

  10,239   28,366   (437)  38,168 

Occupancy, office furniture and equipment

  1,996   1,686   -   3,682 

Advertising

  390   1,079   -   1,469 

Data processing

  1,518   1,005   2   2,525 

Communications

  199   293   -   492 

Professional fees

  543   1,676   17   2,236 

Real estate owned

  (18)  -   -   (18)

Loan processing expense

  -   1,737   -   1,737 

Other

  1,062   2,981   393   4,436 

Total noninterest expenses

  15,929   38,823   (25)  54,727 

Income (loss) before income tax expense

  13,685   (214)  79   13,550 

Income tax expense (benefit)

  2,827   (57)  17   2,787 

Net income (loss)

 $10,858  $(157) $62  $10,763