v3.26.1
Business Segments
6 Months Ended
Jun. 30, 2026
Business Segments  
Business Segments

Note 13 — Business Segments

While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed, and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. Substantially most of the Company’s operations occur through the Bank and involve the delivery of loan and deposit products to customers.

The Company’s chief operating decision maker is the Executive Committee that includes the Chief Executive Officer, Chief Operating Officer and Chief Financial Officer. The Executive Committee assesses performance of the Company on a consolidated basis and decides how to allocate resources based on net income that is also reported as net income on the Consolidated Statement of Income.

The Executive Committee uses net income, which is the measure of segment profit and loss, to evaluate income generated from segment assets (return on assets) and other measures, such as net interest margin, return on average assets, and return on common equity, in deciding how to reinvest profits, such as originating loans, investing in investment securities, or repurchasing shares of the Company’s common stock. Net income is used to monitor budget versus actual results. The Executive Committee also uses net income and other measures in comparing the Company to its peer banks. The comparison of the Company’s net income and other measures to its peer banks, along with the comparison of budgeted versus actual results are used in assessing the Company’s performance and in establishing management compensation. Loans, investments, and deposits provide the revenues in the banking operations. Interest expense and payroll provide the significant expenses in the banking operations. All operations are domestic.

The following table presents the Company’s reported segment revenues, profit or loss and significant segment expenses for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30, 

  ​ ​ ​

Six Months Ended June 30, 

2026

  ​ ​ ​

2025

 

2026

  ​ ​ ​

2025

(In Thousand)

 

(In Thousand)

Total interest income

$

36,060

$

38,039

 

$

72,029

$

76,246

Total interest expense

 

11,410

 

12,965

 

 

23,245

 

26,908

Net interest income

 

24,650

 

25,074

 

 

48,784

 

49,338

Provision for credit loss

860

 

860

237

Net interest income after provision for credit losses

23,790

25,074

47,924

49,101

Total non-interest income

642

858

1,438

2,093

Non-interest expense:

Salaries and employee benefits

5,817

5,650

11,989

11,583

Occupancy expense

787

743

1,661

1,489

Equipment

221

253

444

470

Outside data processing

725

758

1,521

1,494

Advertising

43

123

86

225

Real estate owned expense

247

277

Other

3,026

2,734

5,797

5,589

Total Non-Interest Expenses

10,619

10,508

21,498

21,127

Income before income tax expense

13,813

15,424

27,864

30,067

Income tax expense

 

4,018

 

4,254

 

8,117

 

8,330

Segment net income

$

9,795

$

11,170

$

19,747

$

21,737

Reconciliation of profit or loss

 

Adjustments and reconciling items

 

 

 

 

Consolidated net income

$

9,795

$

11,170

$

19,747

$

21,737

Earnings per common share - Basis

$

0.75

$

0.85

$

1.50

$

1.65

Earnings per common share - Diluted

0.72

0.82

1.46

1.60

The measure of segment assets is reported as total assets on the Consolidated Statement of Condition.

The following table presents the Company’s reported segment assets as of June 30, 2026 and December 31, 2025:

June 30,

December 31,

2026

  ​ ​ ​

2025

(In Thousand)

Segment assets

  ​

 

  ​

Adjustments and reconciling items

$

$

Consolidated total assets

 

2,115,183

 

2,063,508