Segment Reporting

3 Months Ended

Mar. 31, 2024

Segment Reporting

Segment Reporting

Note 12 – Segment Reporting

The Company has two reportable segments: traditional commercial banking and mortgage banking. Revenues from commercial banking operations consist primarily of interest earned on loans and securities and fees from deposit services. Mortgage banking operating revenues consist principally of interest earned on mortgage loans held for sale, gains on sales of loans in the secondary mortgage market, and loan origination fee income.

The Commercial Banking Segment provides the Mortgage Banking Segment with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges the Mortgage Banking Segment interest based on the Commercial Banking Segment’s cost of funds. Additionally, the Mortgage Banking Segment leases premises from the Commercial Banking Segment. These transactions are eliminated in the consolidation process.

The following table presents segment information as of and for the three months ended March 31, 2024 and 2023 (in thousands):

	Commercial		Mortgage				Consolidated
	Banking		Banking		Eliminations		Totals
Three Months Ended March 31, 2024
Revenues
Interest income	$	9,243	$	92	$	—	$	9,335
Mortgage banking income, net		—		909		(59)		850
Other revenues		795		—		(41)		754
Total revenues		10,038		1,001		(100)		10,939
Expenses
Provision for credit losses		150		—		—		150
Interest expense		2,939		—		—		2,939
Salaries and benefits		2,785		679		—		3,464
Other expenses		2,030		235		(100)		2,165
Total operating expenses		7,904		914		(100)		8,718
Income before income taxes		2,134		87		—		2,221
Income tax expense		431		18		—		449
Net income	$	1,703	$	69	$	—	$	1,772
Total assets	$	756,005	$	16,777	$	(25,910)	$	746,872
								—

	Commercial		Mortgage				Consolidated
	Banking		Banking		Eliminations		Totals
Three Months Ended March 31, 2023
Revenues
Interest income	$	7,543	$	40	$	—	$	7,583
Mortgage banking income, net		—		538		(60)		478
Other revenues		821		—		—		821
Total revenues		8,364		578		(60)		8,882
Expenses
Interest expense		1,218		—		—		1,218
Salaries and benefits		2,742		706		—		3,448
Other expenses		2,137		274		(60)		2,351
Total operating expenses		6,097		980		(60)		7,017
Income (loss) before income taxes		2,267		(402)		—		1,865
Income tax expense (benefit)		409		(84)		—		325
Net income (loss)	$	1,858	$	(318)	$	—	$	1,540
Total assets	$	749,402	$	17,878	$	(32,483)	$	734,797