Business Segments

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Business Segments

NOTE 27. Business Segments

The Company has three reportable operating segments: community banking, marine lending and wealth management. Revenue from community banking operations consist primarily of net interest income related to investments in non-marine loans and securities and outstanding deposits and borrowings, fees earned on deposit accounts and debit card interchange activity. Revenue from marine lending operations consist primarily of net interest income related to commercial and consumer marine loans and gains on sales of loans. The wealth management division's net revenues are comprised primarily of income from offering wealth management services and insurance products through third-party service providers.

On August 23, 2023, the Company completed a sale of specific assets from its marine lending segment. As part of the sale, the Company sold its interest in marine vessel floor plan loans totaling $52.8 million, its rights to service loans that had been sold to secondary market investors prior to the date of sale (valued at $595 thousand on balance sheet prior to sale), and other assets that were not individually significant. The Company received total consideration, net of selling expenses, of $53.5 million and recognized a gain of $435 thousand. The assets sold as well as their related revenues and contribution to earnings did not constitute a significant portion of the Company's assets or operating results for the year ended December 31, 2023. Subsequent to the sale of these assets, the Company retained ownership of its marine vessel retail loans which continue to constitute a significant portion of the Company's assets, revenues, and earnings. The Company expects to cease accepting new marine lending business and hold the retained outstanding loans until they are ultimately repaid.

Financial information of the parent company is included in the "All Other" category. The parent company's revenue and expenses are comprised primarily of interest expense associated with subordinated debt.

The following table provides income and asset information as of and for the twelve months ended December 31, 2023 and 2022, which are included within the Consolidated Balance Sheets and Consolidated Statements of Income.

	Twelve Months Ended
	December 31, 2023
	Community Banking			Marine Lending			Wealth Management		All Other			Eliminations		Consolidated
	(in thousands)
Interest Income	$	67,990		$	15,138		$	—	$	—		$	—	$	83,128
Interest Expense		25,850			5,570			—		1,417			—		32,837
Net Interest Income (Expense)		42,140			9,568			—		(1,417	)		—		50,291
Gain on sales of loans		1,117			311			—		—			—		1,428
Other noninterest income		7,313			1,078			4,926		—			—		13,317
Net Revenue		50,570			10,957			4,926		(1,417	)		—		65,036
Provision for credit losses		2,051			(402	)		—		—			—		1,649
Noninterest expense		44,479			5,106			2,646		523			—		52,754
Income before taxes		4,040			6,253			2,280		(1,940	)		—		10,633
Income tax expense (benefit)		(103	)		1,313			479		(413	)		—		1,276
Net Income	$	4,143		$	4,940		$	1,801	$	(1,527	)	$	—	$	9,357
Other data:
Capital expenditures	$	1,035		$	36		$	—	$	—		$	—	$	1,071
Depreciation and amortization		1,573			224			126		67			—		1,990
	Twelve Months Ended
	December 31, 2022
	Community Banking			Marine Lending			Wealth Management		All Other			Eliminations		Consolidated
	(in thousands)
Interest Income	$	47,554		$	7,132		$	—	$	—		$	—	$	54,686
Interest Expense		4,026			380			—		1,067			—		5,473
Net Interest Income (Expense)		43,528			6,752			—		(1,067	)		—		49,213
Gain on sales of loans		478			1,397			—		—			—		1,875
Other noninterest income		7,222			99			4,149		—			—		11,470
Net Revenue		51,228			8,248			4,149		(1,067	)		—		62,558
Provision for credit losses		1,059			771			—		—			—		1,830
Noninterest expense		36,401			3,695			2,590		371			—		43,057
Income before taxes		13,768			3,782			1,559		(1,438	)		—		17,671
Income tax expense (benefit)		2,343			794			328		(315	)		—		3,150
Net Income	$	11,425		$	2,988		$	1,231	$	(1,123	)	$	—	$	14,521
Other data:
Capital expenditures	$	829		$	9		$	—	$	—		$	—	$	838
Depreciation and amortization		1,499			236			124		51			—		1,910
	Community Banking			Marine Lending			Wealth Management		All Other			Eliminations		Consolidated
Total assets at December 31, 2023	$	1,562,600		$	261,011		$	1,080	$	906		$	—	$	1,825,597
Total assets at December 31, 2022		1,377,461			237,595			1,206		455			—		1,616,717