NOTE 12 - SEGMENT REPORTING

The Company’s reportable segments consist of Wealth Management, Capital Management, and Mortgage. The chief operating decision maker (“CODM”) is the Chief Executive Officer. The measure of profit or loss used by the CODM to identify and measure the Company’s reportable segments is income before income tax.

The Wealth Management segment consists of operations relative to the Company’s fully integrated wealth management products and services. Services provided include deposit, loan, insurance, and trust and investment management advisory products and services.

The Capital Management segment consists of operations relative to the Company’s institutional investment management services over proprietary fixed income, high yield, and equity strategies, including the advisor of three owned, managed, and rated mutual funds. Capital management products and services are financial in nature for which revenues are based on a percentage of assets under management or paid premiums.

The Mortgage segment consists of operations relative to the Company’s residential mortgage service offerings. Mortgage products and services are financial in nature for which premiums are recognized net of expenses, upon the sale of mortgage loans to third parties.

The tables below present the financial information for each segment that is specifically identifiable or based on allocations using internal methods for the three and nine months ended September 30, 2018 and 2017 (in thousands):


Three Months Ended September 30, 2018	Wealth Management		Capital Management		Mortgage		Consolidated
Income Statement
Total interest income	$	9,940	$	-	$	-	$	9,940
Total interest expense		2,152		-		-		2,152
Provision for loan losses		18		-		-		18
Net-interest income		7,770		-		-		7,770
Non-interest income		4,613		850		1,175		6,638
Total income		12,383		850		1,175		14,408
Depreciation and amortization expense		323		130		104		557
All other non-interest expense		9,675		606		1,338		11,619
Income before income tax	$	2,385	$	114	$	(267)	$	2,232

Goodwill	$	15,994	$	8,817	$	-	$	24,811
Total assets	$	1,022,436	$	9,853	$	19,238	$	1,051,527


Nine Months Ended September 30, 2018	Wealth Management		Capital Management		Mortgage		Consolidated
Income Statement
Total interest income	$	28,451	$	-	$	-	$	28,451
Total interest expense		5,726		-		-		5,726
Recovery for loan losses		(169)		-		-		(169)
Net-interest income		22,894		-		-		22,894
Non-interest income		14,457		2,556		3,809		20,822
Total income		37,351		2,556		3,809		43,716
Depreciation and amortization expense		963		393		351		1,707
All other non-interest expense		29,839		2,882		4,118		36,839
Income before income tax	$	6,549	$	(719)	$	(660)	$	5,170

Goodwill	$	15,994	$	8,817	$	-	$	24,811
Total assets	$	1,022,436	$	9,853	$	19,238	$	1,051,527


Three Months Ended September 30, 2017	Wealth Management		Capital Management		Mortgage		Consolidated
Income Statement
Total interest income	$	8,885	$	-	$	-	$	8,885
Total interest expense		1,510		-		-		1,510
Provision for loan losses		306		-		-		306
Net-interest income		7,069		-		-		7,069
Non-interest income		4,877		953		915		6,745
Total income		11,946		953		915		13,814
Depreciation and amortization expense		471		133		-		604
All other non-interest expense		9,576		1,281		673		11,530
Income before income tax	$	1,899	$	(461)	$	242	$	1,680

Goodwill	$	15,994	$	8,817	$	-	$	24,811
Total assets	$	930,243	$	12,971	$	25,231	$	968,445


Nine Months Ended September 30, 2017	Wealth Management		Capital Management		Mortgage		Consolidated
Income Statement
Total interest income	$	24,535	$	-	$	-	$	24,535
Total interest expense		4,229		-		-		4,229
Provision for loan losses		792		-		-		792
Net-interest income		19,514		-		-		19,514
Non-interest income		13,914		3,133		2,237		19,284
Total income		33,428		3,133		2,237		38,798
Depreciation and amortization expense		1,419		412		-		1,831
All other non-interest expense		28,028		3,812		2,013		33,853
Income before income tax	$	3,981	$	(1,091)	$	224	$	3,114

Goodwill	$	15,994	$	8,817	$	-	$	24,811
Total assets	$	930,243	$	12,971	$	25,231	$	968,445