v3.26.1
Segment Information
6 Months Ended
Jun. 30, 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 are not limited to, primary deposit products, such as 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 Management Committee. The CODM includes the senior executive management team including the Chief Executive Officer, Chief Financial Officer, Chief Credit Officer, Chief Operating 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 presented in the Consolidated Statements of Income, as well as employee compensation (in thousands):

Banking Segment

Three Months Ended June 30, 

Six Months Ended June 30, 

2026

2025

2026

2025

Interest income

$

78,042

$

69,453

$

152,312

$

135,830

Interest expense

29,978

29,110

58,371

57,248

Net interest income

48,064

40,343

93,941

78,582

Provision for credit losses

1,463

2,411

5,602

3,391

Net interest income after provision for credit losses

46,601

37,932

88,339

75,191

Noninterest income:

Service charges on deposit accounts

1,881

1,766

3,734

3,502

Gain (loss) on sale of securities, net

54

(4)

55

(4)

Mortgage banking

916

633

1,676

1,126

Investment services

1,724

1,440

3,520

3,209

Insurance commissions

1,554

2,967

Interchange and debit card transaction fees, net

1,676

1,342

3,094

2,562

Other

1,635

2,167

3,748

4,133

Total noninterest income

7,886

8,898

15,827

17,495

Noninterest expense:

Salaries and employee benefits

21,015

19,602

41,429

38,836

Occupancy and equipment

3,351

3,432

6,696

6,829

FDIC insurance

920

992

1,670

1,952

Other real estate and loan related expense

806

757

1,597

1,415

Advertising and marketing

408

390

795

772

Data processing and technology

2,683

2,651

5,119

5,309

Professional services

1,366

1,153

2,559

2,521

Amortization of intangibles

454

566

911

1,135

Other

2,952

3,026

6,095

6,097

Total noninterest expense

33,955

32,569

66,871

64,866

Income before income tax expense

20,532

14,261

37,295

27,820

Income tax expense

4,210

2,556

7,293

4,861

Net income

$

16,322

$

11,705

$

30,002

$

22,959