Segment Reporting

The Corporation has three reportable segments: commercial banking, mortgage banking, and trust and wealth management. Revenues from commercial banking operations consist primarily of interest earned on loans and securities and fees from deposit services. Mortgage banking operating revenues consist principally of interest earned on mortgage loans held for sale, gains on sales of loans in the secondary mortgage market, and loan origination fee income. Trust and wealth management operating revenues consist principally of transactional fees charged to clients as well as fees for portfolio asset management.

The commercial banking segment provides the mortgage banking segment (“Mortgage Division”) with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest based on the prime rate. These transactions are eliminated in the consolidation process.

The “Other” column in the following table includes the operations of the Corporation and Access Real Estate. The primary source of income for the Corporation is derived from dividends from the Bank and its primary expense relates to costs incurred by the Corporation in connection with its annual audits, directors fees, and other professional fees and expenses associated with being a publicly held entity. The primary source of income for Access Real Estate is derived from rents received from the Bank.

The following tables present segment information as of and for the three months ended September 30, 2017 and 2016:



	September 30, 2017
(In Thousands)	Commercial Banking		Trust & Wealth Management			Mortgage Banking			Other			Eliminations			Consolidated
Revenues:
Interest income	$	27,429	$	4		$	299		$	5		$	(45	)	$	27,692
Gain on sales of loans	—		—			5,594			—			—			5,594
Other revenues	1,977		1,617			(740		)	312			(237		)	2,929
Total revenues	29,406		1,621			5,153			317			(282		)	36,215
Expenses:
Interest expense	3,072		—			(25		)	96			(45		)	3,098
Salaries and employee benefits	7,334		868			2,898			—			—			11,100
Other expenses	8,724		1,850			1,149			1,107			(237		)	12,593
Total operating expenses	19,130		2,718			4,022			1,203			(282		)	26,791
Income (loss) before income taxes	$	10,276	$	(1,097	)	$	1,131		$	(886	)	$	—		$	9,424
Total assets	$	2,810,037	$	41,002		$	26,485		$	19,756		$	(24,211	)	$	2,873,069



	September 30, 2016
(In Thousands)	Commercial Banking		Wealth Management			Mortgage Banking			Other			Eliminations			Consolidated
Revenues:
Interest income	$	12,531	$	—		$	574		$	5		$	(332	)	$	12,778
Gain on sales of loans	—		—			8,316			—			—			8,316
Other revenues	682		773			(1,060		)	289			(315		)	369
Total revenues	13,213		773			7,830			294			(647		)	21,463
Expenses:
Interest expense	1,640		—			261			66			(332		)	1,635
Salaries and employee benefits	3,977		567			3,664			—			—			8,208
Other expenses	2,578		233			1,491			724			(315		)	4,711
Total operating expenses	8,195		800			5,416			790			(647		)	14,554
Income (loss) before income taxes	$	5,018	$	(27	)	$	2,414		$	(496	)	$	—		$	6,909
Total assets	$	1,290,518	$	2,894		$	74,195		$	18,420		$	(23,189	)	$	1,362,838

The following table presents segment information as of and for the nine months ended September 30, 2017 and 2016:



	September 30, 2017
(In Thousands)	Commercial Banking		Trust & Wealth Management			Mortgage Banking			Other			Eliminations			Consolidated
Revenues:
Interest income	$	67,740	$	7		$	846		$	17		$	(225	)	$	68,385
Gain on sale of loans	—		—			14,985			—			—			14,985
Other revenues	4,445		4,195			(306		)	975			(883		)	8,426
Total revenues	72,185		4,202			15,525			992			(1,108		)	91,796
Expenses:
Interest expense	7,796		—			18			337			(225		)	7,926
Salaries and employee benefits	19,992		2,686			9,122			—			—			31,800
Other expenses	20,173		2,541			3,246			7,537			(883		)	32,614
Total operating expenses	47,961		5,227			12,386			7,874			(1,108		)	72,340
Income (loss) before income taxes	$	24,224	$	(1,025	)	$	3,139		$	(6,882	)	$	—		$	19,456
Total assets	$	2,810,037	$	41,002		$	26,485		$	19,756		$	(24,211	)	$	2,873,069



	September 30, 2016
(In Thousands)	Commercial Banking		Wealth Management			Mortgage Banking		Other			Eliminations			Consolidated
Revenues:
Interest income	$	36,379	$	—		$	1,355	$	15		$	(654	)	$	37,095
Gain on sale of loans	—		—			19,419		—			—			19,419
Other revenues	2,908		2,269			53		978			(950		)	5,258
Total revenues	39,287		2,269			20,827		993			(1,604		)	61,772
Expenses:
Interest expense	4,656		—			439		200			(654		)	4,641
Salaries and employee benefits	12,065		1,655			10,563		—			—			24,283
Other expenses	6,285		783			4,127		1,943			(950		)	12,188
Total operating expenses	23,006		2,438			15,129		2,143			(1,604		)	41,112
Income (loss) before income taxes	$	16,281	$	(169	)	$	5,698	$	(1,150	)	$	—		$	20,660
Total assets	$	1,290,518	$	2,894		$	74,195	$	18,420		$	(23,189	)	$	1,362,838