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SEGMENT RESULTS
12 Months Ended
Dec. 31, 2023
SEGMENT RESULTS  
SEGMENT RESULTS

22. SEGMENT RESULTS

The financial performance of the Company is also monitored by an internal funds transfer pricing profitability measurement system which produces line of business results and key performance measures. The Company’s major business units include community banking, wealth management, and investment/parent. The reported results reflect the underlying economics of the business segments. Expenses for centrally provided services are allocated based upon the cost and estimated usage of those services. The businesses are match-funded and interest rate risk is centrally managed and accounted for within the investment/parent business segment. The key performance measure the Company focuses on for each business segment is net income contribution.

The community banking segment includes both retail and commercial banking activities. Retail banking includes the deposit-gathering branch franchise and lending to both individuals and small businesses. Lending activities include residential mortgage loans, direct consumer loans, and small business commercial loans. Commercial banking to businesses includes commercial loans, business services, and CRE loans. The wealth management segment includes the Trust Company, West Chester Capital Advisors (WCCA), our registered investment advisory firm, and Financial Services. Wealth management activities include personal trust products and services such as personal portfolio investment management, estate planning and administration, custodial services and pre-need trusts. Also, institutional trust products and services such as 401(k) plans, defined benefit and defined contribution employee benefit plans, and

individual retirement accounts are included in this segment. Financial Services include the sale of mutual funds, annuities, and insurance products. The wealth management businesses also include the union collective investment funds (ERECT funds) which are designed to use union pension dollars in construction projects that utilize union labor. The investment/parent includes the net results of investment securities and borrowing activities, general corporate expenses not allocated to the business segments, interest expense on corporate debt, and centralized interest rate risk management. Inter-segment revenues were not material.

The contribution of the major business segments to the Consolidated Statements of Operations were as follows:

YEAR ENDED DECEMBER 31, 2023

COMMUNITY

WEALTH

INVESTMENT/

BANKING

MANAGEMENT

PARENT

TOTAL

(IN THOUSANDS)

Net interest income (expense)

    

$

50,843

    

$

11

    

$

(14,834)

    

$

36,020

Provision for credit losses

 

6,580

 

 

849

 

7,429

Non-interest income

 

4,409

 

11,270

 

710

 

16,389

Non-interest expense

 

34,749

 

9,506

 

5,113

 

49,368

Income (loss) before income taxes

 

13,923

 

1,775

 

(20,086)

 

(4,388)

Income tax expense (benefit)

 

2,389

 

452

 

(3,883)

 

(1,042)

Net income (loss)

$

11,534

$

1,323

$

(16,203)

$

(3,346)

Total assets

$

1,151,720

$

11,173

$

226,745

$

1,389,638

YEAR ENDED DECEMBER 31, 2022

COMMUNITY

WEALTH

INVESTMENT/

BANKING

MANAGEMENT

PARENT

TOTAL

(IN THOUSANDS)

Net interest income (expense)

    

$

46,135

    

$

65

    

$

(5,637)

    

$

40,563

Provision for credit losses

 

50

 

 

 

50

Non-interest income (loss)

 

5,174

 

11,620

 

(102)

 

16,692

Non-interest expense

 

36,216

 

8,834

 

2,954

 

48,004

Income (loss) before income taxes

 

15,043

 

2,851

 

(8,693)

 

9,201

Income tax expense (benefit)

 

2,638

 

688

 

(1,573)

 

1,753

Net income (loss)

$

12,405

$

2,163

$

(7,120)

$

7,448

Total assets

$

1,114,923

$

10,867

$

238,084

$

1,363,874

YEAR ENDED DECEMBER 31, 2021

COMMUNITY

WEALTH

INVESTMENT/

BANKING

MANAGEMENT

PARENT

TOTAL

(IN THOUSANDS)

Net interest income (expense)

    

$

45,934

    

$

72

    

$

(6,923)

    

$

39,083

Provision for credit losses

 

1,100

 

 

 

1,100

Non-interest income

 

5,649

 

11,986

 

126

 

17,761

Non-interest expense

 

35,636

 

8,349

 

2,985

 

46,970

Income (loss) before income taxes

 

14,847

 

3,709

 

(9,782)

 

8,774

Income tax expense (benefit)

 

2,797

 

841

 

(1,936)

 

1,702

Net income (loss)

$

12,050

$

2,868

$

(7,846)

$

7,072

Total assets

$

1,111,856

$

10,822

$

212,882

$

1,335,560