REPORTABLE SEGMENTS

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

REPORTABLE SEGMENTS

NOTE 20. REPORTABLE SEGMENTS

GrandSouth’s banking segment GrandSouth Bank conducts traditional banking operations (as GrandSouth Bank, or Core Bank) and offers specialty lending (as CarBucks). The Core Bank and CarBucks are GrandSouth’s primary reportable segments for management financial reporting. This business segment structure along primary lending products is consistent with the way management internally reviews financial information and allocates resources. Results for prior periods have been restated for comparability.

The Core Bank segment consists of commercial and consumer lending and full-service branches in its geographic region with its own management team. The branches provide a full range of traditional banking products as well as treasury services and merchant services. The CarBucks segment consists of specialty floor plan inventory financing for small automobile dealers. The “Other” column includes the investment securities portfolio, parent company activities, bank-owned life insurance, net intercompany eliminations, and certain other activities not currently allocated to the aforementioned segments.

The results for these segments are based on GrandSouth’s management reporting process, which assigns balance sheet and income statement items to each segment. Unlike financial reporting, there is no authoritative guidance for management reporting equivalent to generally accepted accounting principles. The Company uses an internal funding methodology to assign funding costs to assets and earning credits to liabilities with an offset in “Other.” The management reporting process measures the performance of the defined segments based on GrandSouth’s management structure and is not necessarily comparable with similar information for other financial services companies or representative of results that would be achieved if the segments operated as stand-alone entities. If the management structure and/or allocation process change, then allocations, transfers and assignments may change. Segment information is shown in the tables below as of the and for the years indicated (in thousands).

	As of and for the year ended December 31, 2021
	Core Bank		CarBucks		Other			Total
Interest income	$	34,625	$	18,694	$	1,689		$	55,008
Interest expense		1,919		1,472		1,727			5,118
Net interest income		32,706		17,222		(38	)		49,890
Provision for loan losses		865		405		—			1,270
Noninterest income		4,106		178		(475	)		3,809
Noninterest expense		21,154		9,931		56			31,141
Net income before taxes		14,793		7,064		(569	)		21,288
Income tax expense		3,200		1,717		257			5,174
Net income	$	11,593	$	5,347	$	(826	)	$	16,114
Total assets	$	979,907	$	97,075	$	126,740		$	1,203,722
	As of and for the year ended December 31, 2020
	Core Bank		CarBucks		Other			Total
Interest income	$	32,346	$	16,555	$	1,430		$	50,331
Interest expense		5,920		1,662		1,035			8,617
Net interest income		26,426		14,893		395			41,714
Provision for loan losses		2,087		986		—			3,073
Noninterest income		1,578		167		807			2,552
Noninterest expense		20,376		9,613		57			30,046
Net income before taxes		5,541		4,461		1,145			11,147
Income tax expense		1,243		1,001		258			2,502
Net income	$	4,298	$	3,460	$	887		$	8,645
Total assets	$	881,150	$	82,567	$	126,062		$	1,089,779

Core Bank – The Bank’s primary business is to provide traditional deposit and lending products and services to commercial and retail banking clients.

CarBucks – The banking division that provides specialty floor plan lending to small automobile dealers in over 20 states.