NOTE 15 - 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 acting as the advisor of three owned, managed, and rated mutual funds. Capital Management products and services are financial in nature for which revenues are generally 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 months ended March 31, 2020 and 2019 (in thousands):


Three Months Ended March 31, 2020	Wealth Management		Capital Management			Mortgage		Consolidated
Income Statement
Total interest income	$	11,512	$	—		$	—	$	11,512
Total interest expense		2,581		—			—		2,581
Provision for loan losses		367		—			—		367
Net interest income		8,564		—			—		8,564
Non-interest income		4,459		804			2,504		7,767
Total income		13,023		804			2,504		16,331
Depreciation and amortization expense		234		22			20		276
All other non-interest expense		11,171		1,430	(1)		1,770		14,371
Income (loss) before income tax	$	1,618	$	(648)		$	714	$	1,684

Goodwill	$	15,994	$	3,692		$	—	$	19,686
Intangibles held for sale		-		3,000			—		3,000
Total assets	$	1,281,563	$	8,199		$	64,101	$	1,353,863

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(1) Includes loss on intangibles held for sale of $0.6 million.


Three Months Ended March 31, 2019	Wealth Management		Capital Management		Mortgage		Consolidated
Income Statement
Total interest income	$	11,050	$	—	$	—	$	11,050
Total interest expense		3,079		—		—		3,079
Provision for loan losses		194		—		—		194
Net interest income		7,777		—		—		7,777
Non-interest income		4,732		765		1,479		6,976
Total income		12,509		765		1,479		14,753
Depreciation and amortization expense		348		131		65		544
All other non-interest expense		10,050		695		1,313		12,058
Income (loss) before income tax	$	2,111	$	(61)	$	101	$	2,151

Goodwill	$	15,994	$	8,817	$	—	$	24,811
Total assets	$	1,114,800	$	10,110	$	19,778	$	1,144,688