NOTE 14 - 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 listed 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 six months ended June 30, 2019 and 2018 (in thousands):


Three Months Ended June 30, 2019	Wealth Management		Capital Management			Mortgage		Consolidated
Income Statement
Total interest income	$	11,174	$	—		$	—	$	11,174
Total interest expense		3,214		—			—		3,214
Provision for loan losses		(78)		—			—		(78)
Net interest income		8,038		—			—		8,038
Non-interest income		4,512		798			3,276		8,586
Total income		12,550		798			3,276		16,624
Depreciation and amortization expense		301		95			73		469
All other non-interest expense		10,432		2,313	(1)		1,445		14,190
Income (loss) before income tax	$	1,817	$	(1,610)		$	1,758	$	1,965

Goodwill	$	15,994	$	7,245		$	—	$	23,239
Total assets	$	1,145,910	$	9,025		$	35,530	$	1,190,465

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(1)

Includes goodwill impairment charge of $1.6 million.


Three Months Ended June 30, 2018	Wealth Management		Capital Management		Mortgage		Consolidated
Income Statement
Total interest income	$	9,505	$	—	$	—	$	9,505
Total interest expense		1,928		—		—		1,928
Provision for loan losses		-		—		—		-
Net interest income		7,577		—		—		7,577
Non-interest income		4,680		845		1,367		6,892
Total income		12,257		845		1,367		14,469
Depreciation and amortization expense		321		132		124		577
All other non-interest expense		10,025		1,080		1,402		12,507
Income (loss) before income tax	$	1,911	$	(367)	$	(159)	$	1,385

Goodwill	$	15,994	$	8,817	$	—	$	24,811
Total assets	$	1,001,191	$	10,318	$	35,064	$	1,046,573


Six Months Ended June 30, 2019	Wealth Management		Capital Management			Mortgage		Consolidated
Income Statement
Total interest income	$	22,224	$	-		$	-	$	22,224
Total interest expense		6,293		-			-		6,293
Provision for loan losses		116		-			-		116
Net-interest income		15,815		-			-		15,815
Non-interest income		9,244		1,563			4,755		15,562
Total income		25,059		1,563			4,755		31,377
Depreciation and amortization expense		632		226			138		996
All other non-interest expense		20,499		3,008	(1)		2,758		26,265
Income before income tax	$	3,928	$	(1,671)		$	1,859	$	4,116

Goodwill	$	15,994	$	7,245		$	—	$	23,239
Total assets	$	1,145,910	$	9,025		$	35,530	$	1,190,465

_______________________________________________

(1)

Includes goodwill impairment charge of $1.6 million.


Six Months Ended June 30, 2018	Wealth Management		Capital Management		Mortgage		Consolidated
Income Statement
Total interest income	$	18,511	$	—	$	—	$	18,511
Total interest expense		3,574		—		—		3,574
Provision for loan losses		(187)		—		—		(187)
Net-interest income		15,124		—		—		15,124
Non-interest income		9,844		1,706		2,634		14,184
Total income		24,968		1,706		2,634		29,308
Depreciation and amortization expense		641		262		247		1,150
All other non-interest expense		20,165		2,276		2,779		25,220
Income before income tax	$	4,162	$	(832)	$	(392)	$	2,938

Goodwill	$	15,994	$	8,817	$	—	$	24,811
Total assets	$	1,001,191	$	10,318	$	35,064	$	1,046,573