SEGMENT REPORTING

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

The Corporation manages its operations through two primary business segments: core banking and WMG. The core banking segment provides revenues by attracting deposits from the general public and using such funds to originate consumer, commercial, commercial real estate, and residential mortgage loans, primarily in the Corporation’s local markets, and to invest in securities. The WMG services segment provides revenues by providing trust and investment advisory services to clients.

Accounting policies for the segments are the same as those described in Note 1 of the Corporation’s 2021 Annual Report on Form 10-K, which was filed with the SEC on March 23, 2022. Summarized financial information concerning the Corporation’s reportable segments and the reconciliation to the Corporation’s consolidated results are shown in the following table. Income taxes are allocated based on the separate taxable income of each entity and indirect overhead expenses are allocated based on reasonable and equitable allocations applicable to the reportable segment.

The Holding Company, CFS, and CRM columns below includes amounts to eliminate transactions between segments (in thousands).

	Three months ended June 30, 2022
	Core Banking		WMG		Holding Company, CFS, and CRM		Consolidated Totals
Interest and dividend income	$	18,531	$	—	$	7	$	18,538
Interest expense	897		—		—		897
Net interest income	17,634		—		7		17,641
Provision for loan losses	(1,744)		—		—		(1,744)
Net interest income after provision for loan losses	19,378		—		7		19,385
Other non-interest income	2,442		2,628		249		5,319
Other non-interest expenses	12,226		1,650		466		14,342
Income (loss) before income tax expense (benefit)	9,594		978		(210)		10,362
Income tax expense (benefit)	2,167		229		(58)		2,338
Segment net income (loss)	$	7,427	$	749	$	(152)	$	8,024

	Three months ended June 30, 2021
	Core Banking		WMG		Holding Company, CFS, and CRM		Consolidated Totals
Interest and dividend income	$	16,936	$	—	$	9	$	16,945
Interest expense	866		—		—		866
Net interest income	16,070		—		9		16,079
Provision for loan losses	(150)		—		—		(150)
Net interest income after provision for loan losses	16,220		—		9		16,229
Other non-interest income	3,459		2,803		230		6,492
Legal accruals and settlements	—		—		(269)		(269)
Other non-interest expenses	11,844		1,619		657		14,120
Income (loss) before income tax expense (benefit)	7,835		1,184		(149)		8,870
Income tax expense (benefit)	1,802		316		(43)		2,075
Segment net income (loss)	$	6,033	$	868	$	(106)	$	6,795

	Six Months Ended June 30, 2022
	Core Banking		WMG		Holding Company, CFS, and CRM		Consolidated Totals
Interest and dividend income	$	35,982	$	—	$	14	$	35,996
Interest expense	1,678		—		—		1,678
Net interest income	34,304		—		14		34,318
Provision for loan losses	(2,889)		—		—		(2,889)
Net interest income after provision for loan losses	37,193		—		14		37,207
Other non-interest income	5,135		5,385		462		10,982
Other non-interest expenses	24,757		3,465		788		29,010
Income (loss) before income tax expense (benefit)	17,571		1,920		(312)		19,179
Income tax expense (benefit)	3,933		438		(83)		4,288
Segment net income (loss)	$	13,638	$	1,482	$	(229)	$	14,891
Segment assets	$	2,441,375	$	2,723	$	5,813	$	2,449,911

	Six Months Ended June 30, 2021
	Core Banking		WMG		Holding Company, CFS, and CRM		Consolidated Totals
Interest and dividend income	$	33,671	$	—	$	14	$	33,685
Interest expense	1,820		—		—		1,820
Net interest income	31,851		—		14		31,865
Provision for loan losses	(409)		—		—		(409)
Net interest income after provision for loan losses	32,260		—		14		32,274
Other non-interest income	6,150		5,481		482		12,113
Other non-interest expenses	23,277		3,270		657		27,204
Income (loss) before income tax expense (benefit)	15,133		2,211		(161)		17,183
Income tax expense (benefit)	3,331		579		(52)		3,858
Segment net income (loss)	$	11,802	$	1,632	$	(109)	$	13,325
Segment assets	$	2,369,856	$	3,201	$	7,655	$	2,380,712