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 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 and six months ended June 30, 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 $483 million at the end of the second quarter 2026.

 

  

For the Three Months Ended June 30, 2026

 

(in thousands)

 

Community Banking

  

Wealth Management

  

Total

 
             

Interest Income

 $25,533  $100  $25,633 

Interest Expense

  5,652   —   5,652 

Net interest income

 $19,881  $100  $19,981 

Provision for credit losses

  426   —   426 

Net interest income after provision for credit losses

 $19,455  $100  $19,555 

Noninterest Income:

            

Service charges on deposit accounts

 $913  $—  $913 

ATM and check card fees

  1,155   —   1,155 

Wealth management fees

  —   902   902 

Other operating income

  1,048   —   1,048 

Total noninterest income

 $3,116  $902  $4,018 

Noninterest Expense:

            

Salaries and employee benefits

 $8,757  $249  $9,006 

Occupancy

  967   7   974 

Equipment

  1,130   1   1,131 

Legal and professional fees

  737   5   742 

Data processing expense

  401   34   435 

Investment management

  —   315   315 

Other operating expense

  3,820   14   3,834 

Total noninterest expense

 $15,812  $625  $16,437 

Income before income taxes

 $6,759  $377  $7,136 

Income tax expense

  1,319   74   1,393 

Net income

 $5,440  $303  $5,743 

 

  

For the Three Months Ended June 30, 2025

 

(in thousands)

 

Community Banking

  

Wealth Management

  

Total

 
             

Interest Income

 $25,088  $77  $25,165 

Interest Expense

  6,617   —   6,617 

Net interest income

 $18,471  $77  $18,548 

Provision for credit losses

  911   —   911 

Net interest income after provision for credit losses

 $17,560  $77  $17,637 

Noninterest Income:

            

Service charges on deposit accounts

 $1,020  $—  $1,020 

ATM and check card fees

  1,128   —   1,128 

Wealth management fees

  —   867   867 

Other operating income

  874   —   874 

Total noninterest income

 $3,022  $867  $3,889 

Noninterest Expense:

            

Salaries and employee benefits

 $7,834  $199  $8,033 

Occupancy

  937   7   944 

Equipment

  1,056   1   1,057 

Legal and professional fees

  594   —   594 

Data processing expense

  467   37   504 

Investment management

  —   305   305 

Other operating expense

  3,745   9   3,754 

Total noninterest expense

 $14,633  $558  $15,191 

Income before income taxes

 $5,949  $386  $6,335 

Income tax expense

  1,198   86   1,284 

Net income

 $4,751  $300  $5,051 

 

  

For the Six Months Ended June 30, 2026

 

(in thousands)

 

Community Banking

  

Wealth Management

  

Total

 
             

Interest Income

 $49,773  $189  $49,962 

Interest Expense

  11,305   —   11,305 

Net interest income

 $38,468  $189  $38,657 

Provision for credit losses

  876   —   876 

Net interest income after provision for credit losses

 $37,592  $189  $37,781 

Noninterest Income:

            

Service charges on deposit accounts

 $1,837  $—  $1,837 

ATM and check card fees

  2,202   —   2,202 

Wealth management fees

  —   1,813   1,813 

Other operating income

  1,990   —   1,990 

Total noninterest income

 $6,029  $1,813  $7,842 

Noninterest Expense:

            

Salaries and employee benefits

 $17,510  $478  $17,988 

Occupancy

  1,932   14   1,946 

Equipment

  2,222   2   2,224 

Legal and professional fees

  1,421   9   1,430 

Data processing expense

  760   69   829 

Investment management

  —   610   610 

Other operating expense

  7,338   54   7,392 

Total noninterest expense

 $31,183  $1,236  $32,419 

Income before income taxes

 $12,438  $766  $13,204 

Income tax expense

  2,425   149   2,574 

Net income

 $10,013  $617  $10,630 

 

  

For the Six Months Ended June 30, 2025

 

(in thousands)

 

Community Banking

  

Wealth Management

  

Total

 
             

Interest Income

 $49,046  $140  $49,186 

Interest Expense

  13,187   —   13,187 

Net interest income

 $35,859  $140  $35,999 

Provision for credit losses

  1,743   —   1,743 

Net interest income after provision for credit losses

 $34,116  $140  $34,256 

Noninterest Income:

            

Service charges on deposit accounts

 $2,033  $—  $2,033 

ATM and check card fees

  2,124   —   2,124 

Wealth management fees

  —   1,765   1,765 

Other operating income

  1,578   —   1,578 

Total noninterest income

 $5,735  $1,765  $7,500 

Noninterest Expense:

            

Salaries and employee benefits

 $16,294  $428  $16,722 

Occupancy

  1,999   14   2,013 

Equipment

  2,080   2   2,082 

Legal and professional fees

  1,115   —   1,115 

Data processing expense

  1,193   73   1,266 

Investment management

  —   635   635 

Other operating expense

  9,674   19   9,693 

Total noninterest expense

 $32,355  $1,171  $33,526 

Income before income taxes

 $7,496  $734  $8,230 

Income tax expense

  1,440   141   1,581 

Net income

 $6,056  $593  $6,649