v3.26.3
Segments
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segments

 

(16)Segments:

 

The Company is divided into two reportable segments: Commercial Banking and Mortgage Banking. Commercial Banking provides a full range of loan and deposit products to individual consumers and businesses in all markets through retail lending, deposit services, online banking mobile banking, private banking, commercial lending, commercial real estate lending, agricultural lending, and other banking services. Mortgage banking provides residential mortgage banking products through five offices in Illinois and one office in Wisconsin through our Mortgage Banking Company. The majority of the loans are sold with servicing released.

 

Financial information for each business segment reflects that which is specifically identifiable. Income taxes are allocated based on the effective federal tax rate adjusted for any tax-exempt activity. All tax-exempt activity and provision have been fully allocated to the commercial banking segment. Measurement of performance of business segments is based on the management structure of the Company and is not necessarily comparable with similar information for any other financial institution. Information presented is also not necessarily indicative of the segments’ operations if they were independent entities.

 

Principally, all of the net assets of the Company are involved in the commercial banking segment. Goodwill of approximately $6 million resulting from acquisitions has been assigned to the commercial banking segment, and goodwill of approximately $2 million has been assigned to the mortgage banking segment as a result of First State Mortgage’s formation. Assets assigned to the mortgage banking primarily consist of mortgage loans held for sale and net premises and equipment.

 

The Company’s chief operating decision maker is comprised of the Chief Executive Officer of the Company, the Chief Executive Officer of First State Bank, and Chief Executive Officer/Chief Operating Officer of First State Mortgage. The individuals consider net interest income, non-interest income, and budget-to-actual variances on a monthly basis for profit measures when making decisions about allocating capital and personnel to the operating segment.

 

Selected financial information by business segment is as follows for the three months ended September 30, 2026:

 

Schedule of Business Segment

Three Months Ended

September 30, 2026

 

 

Commercial

   Mortgage Banking  

 

Eliminations

  

 

Total

 
Net interest income  $14,431   $97   $(11)  $14,517 
Recovery of credit loss expense   365    0    0    365 
Mortgage banking revenues   261    1,707    17    1,985 
All other non-interest income   752    0    734    1,486 
Non-interest expenses   9,826    3,111    (41)   12,896 
Income (loss) before income tax expense   5,253    (1,307)   781    4,727 
Income tax expense (benefit)   1,746    (372)   0    1,374 
Net income (loss)   3,507    (935)   781    3,353 

 

 

(16)Segments (continued):

 

Selected financial information by business segment is as follows for the nine months ended September 30, 2026:

 

Nine Months Ended

September 30, 2026

 

 

Commercial

   Mortgage Banking  

 

Eliminations

  

 

Total

 
                 
Net interest income  $42,159   $237   $(31)  $42,365 
Recover of credit loss expense   1,143    0    0    1,143 
Mortgage banking revenues   976    6,192    52    7,220 
All other non-interest income   3,573    0    1,193    4,766 
Non-interest expenses   28,050    8,807    (122)   36,735 
Income (loss) before income tax expense   17,515    (2,378)   1,336    16,473 
Income tax expense (benefit)   5,188    (657)   0    4,531 
Net income (loss)   12,327    (1,721)   1,336    11,942 

 

Selected financial information by business segment is as follows for the three months ended September 30, 2025:

 

Three Months Ended

September 30, 2025

 

 

Commercial

   Mortgage Banking  

 

Eliminations

  

 

Total

 
                 
Net interest income  $12,914   $69   $(14)  $12,969 
Recovery of credit loss expense   253    0    0    253 
Mortgage banking revenues   318    2,645    25    2,988 
All other non-interest income   1,415    0    45    1,460 
Non-interest expenses   9,134    3,028    (41)   12,121 
Income (loss) before income tax expense   5,260    (314)   97    5,043 
Income tax expense (benefit)   1,421    (90)   0    1,331 
Net income (loss)   3,839    (224)   97    3,712 

 

Selected financial information by business segment is as follows for the nine months ended September 30, 2025:

 

Nine Months Ended

September 30, 2025

 

 

Commercial

   Mortgage Banking  

 

Eliminations

  

 

Total

 
                 
Net interest income  $36,652   $235   $(36)  $36,851 
Credit loss expense   641    0    0    641 
Mortgage banking revenues   953    7,461    62    8,476 
All other non-interest income   3,996    0    230    4,226 
Non-interest expenses   27,097    8,668    (122)   35,643 
Income (loss) before income tax expense   13,863    (972)   378    13,269 
Income tax expense (benefit)   3,762    (266)   0    3,496 
Net income (loss)   10,101    (706)   378    9,773