NOTE 27. Business Segments

The Company has three reportable operating segments: community banking, marine lending and wealth management.

The community banking segment offers a wide range of retail and commercial banking services in the form of loan and deposit products. Revenues 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. For the year ended December 31, 2024, non-interest community banking revenue increased, in part, due to the sale of the Company's operating center and branch building in a sales-leaseback transaction, resulting in a realized gain of $3.9 million.

Revenue from marine lending operations consist primarily of net interest income related to commercial and consumer marine vessel retail loans originated through August 2023, at which time the Company ceased accepting new marine lending business. The balance of the marine loan portfolio, which constitutes a significant portion of the Company's assets, revenues, and earnings, totaled $210.1 million at December 31, 2024. This balance will continue to decline as the loans are repaid.

The wealth management segment offers both a trust department and investment services. Trust department services include a full range of personal and retirement plan services, and investment services products include, among other products, annuities, IRA's, life insurance, fixed income investing, and full service or discount brokerage services. Non-deposit investment products are offered through a third-party service provider.

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 Company's segment structure reflects the financial information and reports used by our chief operating decision maker to make decisions regarding the business, including resource allocations and performance. Our Chief Executive Officer is the chief operating decision maker ("CODM"). We evaluate performance and allocate resources based on the operating income of each operating segment. The CODM uses segment operating income in the annual budget process. The operating income of each operating segment includes the revenues of the segment less expenses that are directly related to those revenues. Operating overhead, shared costs and share-based compensation costs are included in Community Banking.

The following table provides income and asset information as of and for the twelve months ended December 31, 2024 and 2023, which are included within the Consolidated Balance Sheets and Consolidated Statements of Income.


	Twelve Months Ended
	December 31, 2024
	Community Banking			Marine Lending			Wealth Management		All Other			Eliminations		Consolidated
	(in thousands)
Interest Income	$	78,805		$	12,516		$	—	$	—		$	—	$	91,321
Interest Expense		33,049			5,628			—		1,417			—		40,094
Net Interest Income (Expense)		45,756			6,888			—		(1,417	)		—		51,227
Gain on sales of loans		2,141			—			—		—			—		2,141
Other noninterest income		13,792			—			5,624		—			—		19,416
Net Revenue		61,689			6,888			5,624		(1,417	)		—		72,784
Provision for credit losses		2,403			148			—		—			—		2,551
Salaries and employee benefits		28,224			—			1,734		101			—		30,059
Occupancy expenses		1,987			—			90		—			—		2,077
Professional fees		1,723			25			—		317			—		2,065
Data processing fees		2,399			—			19		—			—		2,418
Other noninterest expense		13,115			604			980		14			—		14,713
Total Noninterest Expenses		47,448			629			2,823		432			—		51,332
Income (loss) before taxes		11,838			6,111			2,801		(1,849	)		—		18,901
Income tax expense (benefit)		2,048			1,283			588		(361	)		—		3,558
Net Income (loss)	$	9,790		$	4,828		$	2,213	$	(1,488	)	$	—	$	15,343

Other data:
Capital expenditures	$	1,017		$	—		$	2	$	—		$	—	$	1,019
Depreciation and amortization		1,349			—			127		67			—		1,543

	Twelve Months Ended
	December 31, 2023
	Community Banking			Marine Lending			Wealth Management		All Other			Eliminations		Consolidated
	(in thousands)
Interest Income	$	67,955		$	15,138		$	—	$	—		$	—	$	83,093
Interest Expense		25,850			5,570			—		1,417			—		32,837
Net Interest Income (Expense)		42,105			9,568			—		(1,417	)		—		50,256
Gain on sales of loans		1,117			311			—		—			—		1,428
Other noninterest income		7,348			1,078			4,926		—			—		13,352
Net Revenue		50,570			10,957			4,926		(1,417	)		—		65,036
Provision for credit losses		2,051			(402	)		—		—			—		1,649
Salaries and employee benefits		26,948			1,854			1,407		97			—		30,306
Occupancy expenses		2,080			3			119		—			—		2,202
Professional fees		1,452			684			—		404			—		2,540
Data processing fees		1,907			—			28		—			—		1,935
Other noninterest expense		12,092			2,565			1,092		22			—		15,771
Total Noninterest Expenses		44,479			5,106			2,646		523			—		52,754
Income (loss) 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 (loss)	$	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



	Community Banking		Marine Lending		Wealth Management		All Other		Eliminations		Consolidated
Total assets at December 31, 2024	$	1,645,219	$	218,055	$	955	$	1,986	$	—	$	1,866,215
Total assets at December 31, 2023		1,562,600		261,011		1,080		906		—		1,825,597

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

EAGLE FINANCIAL SERVICES INC Segments Disclosure

About Segments Disclosures

Other Available Disclosures