Note 22 - Segments

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(22) Segments

Bancorp’s principal activities include commercial banking and WM&T. Commercial banking provides a full range of loan and deposit products to individual consumers and businesses. Commercial banking also includes Bancorp’s mortgage banking and investment products sales activity. WM&T provides investment management, financial & retirement planning and trust & estate services, as well as retirement plan management for businesses and corporations in all markets in which Bancorp operates. The magnitude of WM&T revenue distinguishes Bancorp from other community banks of similar asset size.

Financial information for each business segment reflects that which is specifically identifiable or allocated based on an internal allocation method. Income taxes are allocated based on the effective federal income tax rate adjusted for any tax-exempt activity. All tax-exempt activity and provision have been allocated fully to the commercial banking segment. Measurement of performance of business segments is based on the management structure of Bancorp and is not necessarily comparable with similar information for any other financial institution. Information presented is also not necessarily indicative of the segments’ operations if they were independent entities.

The majority of the net assets of Bancorp are involved in the commercial banking segment. As of September 30, 2024, goodwill totaling $194 million was recorded on Bancorp’s consolidated balance sheets, of which $172 million is attributed to the commercial banking segment and $22 million is attributed to WM&T. The portion of total goodwill attributed to WM&T relates entirely to the CB acquisition. With the exception of goodwill attributed to WM&T through the CB acquisition, assets assigned to WM&T consist primarily of a CLI asset associated with the WM&T business added through the CB acquisition, net premises and equipment and a receivable related to fees earned that have not been collected.

Selected financial information by business segment follows:

	Three months ended September 30, 2024						Three months ended September 30, 2023
(in thousands)	Commercial Banking		WM&T		Total		Commercial Banking		WM&T		Total
Net interest income	$	64,711	$	268	$	64,979	$	61,155	$	160	$	61,315
Provision for credit losses		4,325		—		4,325		2,775		—		2,775
Wealth management and trust services		—		10,931		10,931		—		10,030		10,030
All other non-interest income		13,866		—		13,866		12,866		—		12,866
Non-interest expenses		42,996		5,456		48,452		41,788		4,914		46,702
Income before income tax expense		31,256		5,743		36,999		29,458		5,276		34,734
Income tax expense		6,393		1,246		7,639		6,497		1,145		7,642
Net income	$	24,863	$	4,497	$	29,360	$	22,961	$	4,131	$	27,092
Segment assets	$	8,403,147	$	34,133	$	8,437,280	$	7,867,626	$	35,804	$	7,903,430

	Nine months ended September 30, 2024						Nine months ended September 30, 2023
(dollars in thousands)	Commercial Banking		WM&T		Total		Commercial Banking		WM&T		Total
Net interest income	$	186,295	$	776	$	187,071	$	184,895	$	421	$	185,316
Provision for credit losses		7,050		—		7,050		7,750		—		7,750
Wealth management and trust services		—		32,497		32,497		—		29,703		29,703
All other non-interest income		39,226		—		39,226		38,100		—		38,100
Non-interest expenses		128,604		17,918		146,522		121,265		16,551		137,816
Income before income tax expense		89,867		15,355		105,222		93,980		13,573		107,553
Income tax expense		19,045		3,332		22,377		20,804		2,945		23,749
Net income	$	70,822	$	12,023	$	82,845	$	73,176	$	10,628	$	83,804
Segment assets		8,403,147	$	34,133	$	8,437,280	$	7,867,626	$	35,804	$	7,903,430