Segment Reporting

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 18. Segment Reporting

 

In previous reports, the Company concluded that it had one operating and reportable segment, “Community Banking”. This conclusion was based on the fact that the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities supports the others. The Company has re-assessed its segment reporting and decided to report two segments: traditional commercial banking and mortgage banking, as management has changed the information it reviews to make decisions. 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.

The commercial banking segment provides the mortgage banking segment 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 commercial banking segment’s cost of funds. Additionally, the mortgage banking segment leases premises from the commercial banking segment. These transactions are eliminated in the consolidation process.

The following table presents segment information as of and for the years ended December 31, 2016, 2015 and 2014. (in thousands):

	Commercial		Mortgage				Consolidated
	Banking		Banking		Eliminations		Totals
Year Ended December 31, 2016
Revenues
Interest income	$	15,636	$	470	$	(117)	$	15,989
Gain on sale of loans		-		6,430		-		6,430
Other revenues		3,868		742		(190)		4,420
Total revenues		19,504		7,642		(307)		26,839
Expenses
Interest expense		2,609		117		(117)		2,609
Salaries and benefits		7,702		3,593		-		11,295
Commissions		-		1,606		-		1,606
Other expenses		8,088		1,090		(190)		8,988
Total operating expenses		18,399		6,406		(307)		24,498
Income before income taxes	$	1,105	$	1,236	$	-	$	2,341
Total assets	$	448,373	$	10,026	$	(13,597)	$	444,802

	Commercial		Mortgage				Consolidated
	Banking		Banking		Eliminations		Totals
Year Ended December 31, 2015
Revenues
Interest income	$	15,165	$	446	$	(107)	$	15,504
Gain on sale of loans		-		6,076		-		6,076
Other revenues		3,473		749		(240)		3,982
Total revenues		18,638		7,271		(347)		25,562
Expenses
Interest expense		2,877		107		(117)		2,867
Salaries and benefits		7,346		3,500		-		10,846
Commissions		-		1,555		-		1,555
Other expenses		8,787		1,091		(230)		9,648
Total operating expenses		19,010		6,253		(347)		24,916
Income (loss) before income taxes	$	(372)	$	1,018	$	-	$	646
Total assets	$	426,038	$	8,806	$	(14,903)	$	419,941

	Commercial		Mortgage				Consolidated
	Banking		Banking		Eliminations		Totals
Year Ended December 31, 2014
Revenues
Interest income	$	16,287	$	347	$	(56)	$	16,578
Gain on sale of loans		-		4,449		-		4,449
Other revenues		3,078		706		(344)		3,440
Total revenues		19,365		5,502		(400)		24,467
Expenses
Interest expense		3,561		55		(56)		3,560
Salaries and benefits		7,454		3,231		-		10,685
Commissions		-		1,165		-		1,165
Other expenses		9,237		1,201		(344)		10,094
Total operating expenses		20,252		5,652		(400)		25,504
Income (loss) before income taxes	$	(887)	$	(150)	$	-	$	(1,037)
Total assets	$	435,046	$	8,081	$	(9,123)	$	434,004