Segment Reporting

12 Months Ended

Dec. 31, 2021

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, 2021
(dollars in thousands)	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
Revenues
Interest and dividend income	$	42,226	$	26	$	9,643		$	(9,643	)	$	42,252
Income from fiduciary activities		-		4,198		-			-			4,198
Other income		9,681		1,067		201			(262	)		10,687
Total operating income		51,907		5,291		9,844			(9,905	)		57,137
Expenses
Interest expense		2,909		-		549			-			3,458
Provision for loan losses		794		-		-			-			794
Salaries and employee benefits		21,682		3,012		667			-			25,361
Other expenses		16,412		1,131		507			(262	)		17,788
Total operating expenses		41,797		4,143		1,723			(262	)		47,401
Income before taxes		10,110		1,148		8,121			(9,643	)		9,736
Income tax expense (benefit)		1,372		243		(319	)		-			1,296
Net income	$	8,738	$	905	$	8,440		$	(9,643	)	$	8,440
Capital expenditures	$	1,473	$	41	$	-		$	-		$	1,514
Total assets	$	1,330,337	$	7,227	$	150,943		$	(150,352	)	$	1,338,155

	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

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.