Segment Reporting

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Reporting

NOTE 18, Segment Reporting

The Company operates in a decentralized fashion in three principal business segments: the Bank, the Trust, and the Company (for purposes of this Note). Revenues from the Bank’s operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Trust’s operating revenues consist principally of income from fiduciary and asset management fees. The Parent’s revenues are mainly interest and dividends received from the Bank and Trust companies. The Company has no other segments. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each segment appeals to different markets and, accordingly, requires different technologies and marketing strategies.

Information about reportable segments, and reconciliation of such information to the Consolidated Financial Statements as of and for the years ended December 31 follows:

	Year Ended December 31, 2020
(dollars in thousands)	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	39,966	$	43	$	6,069		$	(6,069	)	$	40,009
Income from fiduciary activities		-		3,877		-			-			3,877
Other income		9,899		983		200			(261	)		10,821
Total operating income		49,865		4,903		6,269			(6,330	)		54,707
Expenses
Interest expense		5,237		-		55			-			5,292
Provision for loan losses		1,000		-		-			-			1,000
Salaries and employee benefits		21,652		3,191		669			-			25,512
Other expenses		15,840		1,078		336			(261	)		16,993
Total operating expenses		43,729		4,269		1,060			(261	)		48,797
Income before taxes		6,136		634		5,209			(6,069	)		5,910
Income tax expense (benefit)		565		136		(180	)		-			521
Net income	$	5,571	$	498	$	5,389		$	(6,069	)	$	5,389
Capital expenditures	$	901	$	23	$	-		$	-		$	924
Total assets	$	1,218,766	$	6,957	$	118,558		$	(118,090	)	$	1,226,191

	Year Ended December 31, 2019
(dollars in thousands)	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	40,121	$	120	$	8,446		$	(8,446	)	$	40,241
Income from fiduciary activities		-		3,850		-			-			3,850
Other income		9,260		1,028		200			(261	)		10,227
Total operating income		49,381		4,998		8,646			(8,707	)		54,318
Expenses
Interest expense		6,310		-		112			-			6,422
Provision for loan losses		318		-		-			-			318
Salaries and employee benefits		20,405		3,142		477			-			24,024
Other expenses		13,508		1,015		352			(261	)		14,614
Total operating expenses		40,541		4,157		941			(261	)		45,378
Income before taxes		8,840		841		7,705			(8,446	)		8,940
Income tax expense (benefit)		1,054		181		(155	)		-			1,080
Net income	$	7,786	$	660	$	7,860		$	(8,446	)	$	7,860
Capital expenditures	$	1,756	$	26	$	-		$	-		$	1,782
Total assets	$	1,048,158	$	6,695	$	111,764		$	(112,129	)	$	1,054,488

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on profit or loss from operations before income taxes not including nonrecurring gains or losses.

Both the Parent and the Trust companies maintain deposit accounts with the Bank, on terms substantially similar to those available to other customers. These transactions are eliminated to reach consolidated totals.

The Company operates in one geographical area and does not have a single external customer from which it derives 10 percent or more of its revenues.