Note 26:      Operating Segments

The Company’s banking operation is its only operating segment. The banking operation is principally engaged in the business of originating residential and commercial real estate loans, construction loans, commercial business loans and consumer loans and funding these loans by attracting deposits from the general public, accepting brokered deposits and borrowing from the Federal Home Loan Bank and others. The operating results of this segment are regularly reviewed by management to make decisions about resource allocations and to assess performance. The parent holding company does not have any significant operations other than ownership of the Bank, and the parent holding company’s only income is equity in the earnings of the Bank.

Our chief executive officer is our chief operating decision maker. Our chief executive officer reviews actual net income versus budgeted net income, as well as comparison to other comparable financial reporting periods, to assess performance on a monthly basis and to make decisions about allocating capital and personnel.

Financial results by operating segment (all attributed to the banking segment), including significant expense categories provided to the chief operating decision maker, are detailed below at December 31, 2025, 2024 and 2023.

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

(In Thousands)

Interest income

$

313,732

$

324,698

$

296,835

Interest expense

 

113,499

 

135,555

 

103,620

Net interest income

 

200,233

 

189,143

 

193,215

Credit loss expense

 

45

 

2,716

 

(3,079)

Net interest income after credit loss expense

 

200,188

 

186,427

 

196,294

Non-interest Income

 

 

  ​

 

  ​

Commissions

 

1,626

 

1,227

 

1,153

Overdraft and insufficient funds fees

 

5,182

 

5,140

 

7,617

Point-of-sale and ATM fee income and service charges

 

13,202

 

13,586

 

14,346

Net gain on loan sales

 

3,272

 

3,779

 

2,354

Late charges and fees on loans

 

1,193

 

512

 

786

Fees from debit card contracts

 

1,615

 

1,804

 

2,579

Other income

 

2,962

 

4,517

 

1,238

 

29,052

 

30,565

 

30,073

Non-interest Expense

 

  ​

 

  ​

 

  ​

Salaries and incentives

 

64,911

 

63,954

 

63,641

Employee benefits

 

15,052

 

14,645

 

14,880

Net occupancy expense

 

13,267

 

12,430

 

12,357

Technology, furniture and equipment expense

 

22,030

 

19,688

 

18,477

Postage

 

3,565

 

3,329

 

3,590

Insurance

 

4,448

 

4,622

 

4,542

Advertising

 

2,929

 

3,124

 

3,396

Office supplies and printing

 

953

 

1,008

 

1,057

Telephone

 

2,797

 

2,772

 

2,730

Legal, audit and other professional fees

 

4,166

 

5,399

 

7,086

Expense (income) on other real estate and repossessions

 

(518)

 

(304)

 

311

Intangible asset amortization

 

434

 

433

 

286

Travel, meals and entertainment

 

2,141

 

2,066

 

2,076

Other operating expenses

 

5,768

 

8,329

 

6,594

 

141,943

 

141,495

 

141,023

Income Before Income Taxes

 

87,297

 

75,497

 

85,344

Provision for Income Taxes

 

16,324

 

13,690

 

17,544

Net Income

$

70,973

$

61,807

$

67,800

The measure of segment assets is based on total assets as reported on the consolidated statements of financial condition. For the years ended December 31, 2025 and 2024, there were no adjustments or reconciling items between the banking segment total assets and total assets as presented on the consolidated statements of financial condition.

Historical Timeline

Fiscal YearFiled
2025Mar 6, 2026Showing above
2024Mar 7, 2025

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.