Segment Information
The Company’s reportable segment is determined by the Chief Executive Officer, who is the designated chief operating decision maker, based upon information provided about the Company’s products and services offered, primarily banking operations. Our one operating segment, Banking, is also distinguished by the level of information provided to the chief operating decision maker, who uses such information to review performance of the various components of the business such as branches and lending, which are then
aggregated because operating performance, products/services and customers are similar. The chief operating decision maker will evaluate the financial performance of the Company’s business components such as by evaluating revenue streams, significant expenses and budget to actual results in assessing the Company’s segment and in the determination of allocating resources. The information reviewed is on a consolidated basis and discrete financial information is not available. The chief operating decision maker uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The chief operating decision maker uses consolidated net income through return on average assets and return on average equity and the efficiency ratio, as well as loan growth to benchmark the Company against its competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used in assessment performance and in establishing compensation. Loans, investments, and deposits provide the revenues in the banking operation. Interest expense, provisions for credits losses and payroll provide the significant expenses in the banking operating. All operations are domestic.
Accounting policies for the segment are the same as those described in Note 1. Segment performance is evaluated using consolidated net income. Information reported internally for performance assessment by the chief operating decision maker follows, inclusive of reconciliations of significant segment totals to the financial statements:
| | | | | | | | | | | | | | | | | |
| Banking Segment |
| | Years ended December 31, |
| | 2025 | | 2024 | | 2023 |
| | | | | |
| Interest income | $ | 749,668 | | | 669,196 | | | 587,922 | |
| Reconciliation of revenue | | | | | |
| Service charges and fees | 65,072 | | | 62,957 | | | 59,214 | |
| Trust and other financial services income | 32,314 | | | 30,102 | | | 27,284 | |
| Gain/(loss) on sale of investments | 178 | | | (39,413) | | | (8,307) | |
| Other revenue (1) | 31,704 | | | 33,364 | | | 35,632 | |
| Consolidated revenues | $ | 878,936 | | | 756,206 | | | 701,745 | |
| | | | | |
| Less: | | | | | |
| Interest expense | 224,266 | | | 233,618 | | | 152,239 | |
| Segment net interest income and noninterest income | $ | 654,670 | | | 522,588 | | | 549,506 | |
| Less: | | | | | |
| Provision for credit losses | 55,584 | | | 24,505 | | | 22,874 | |
| Compensation and employee benefits | 237,910 | | | 214,455 | | | 195,691 | |
| Processing expenses | 58,489 | | | 59,351 | | | 58,687 | |
| Premises and occupancy costs | 31,399 | | | 29,469 | | | 29,151 | |
| Professional services | 13,122 | | | 14,883 | | | 17,819 | |
| Office operations | 13,599 | | | 12,433 | | | 12,955 | |
| Federal deposit insurance premiums | 11,523 | | | 11,600 | | | 9,271 | |
| Other segment items (2) | 70,254 | | | 26,346 | | | 27,980 | |
| Income tax expense | 36,777 | | | 29,268 | | | 40,121 | |
| Segment net income/consolidated net income | $ | 126,013 | | | 100,278 | | | 134,957 | |
(1) Other revenues include loan sales, gain on real estate owned, income from bank owned life insurance and other operating income.
(2) Other segment items include expenses for collections, marketing, amortization of intangibles, merger, asset disposition and restructuring and other operating expense.
| | | | | | | | | | | | | | | | | |
| Banking Segment |
| | Years ended December 31, |
| | 2025 | | 2024 | | 2023 |
| | | | | |
| Other segment disclosures | | | | | |
| Interest income | $ | 749,668 | | | 669,196 | | | 587,922 | |
| Interest expense | 224,266 | | | 233,618 | | | 152,239 | |
| Depreciation | 11,616 | | | 11,259 | | | 11,492 | |
| Amortization | 5,171 | | | 2,452 | | | 3,270 | |
| Other significant noncash items: | | | | | |
| Provision for credit losses | 55,584 | | | 24,505 | | | 22,874 | |
| Segment assets | 16,766,617 | | | 14,408,224 | | | 14,419,105 | |
| Expenditures for segment assets | 15,143 | | | 4,618 | | | 2,275 | |
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.