SEGMENT REPORTING

9 Months Ended

Sep. 30, 2020

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 16 - 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 September 30, 2020 and 2019 (in thousands):

Three Months Ended September 30, 2020	Wealth Management		Capital Management		Mortgage		Consolidated
Income Statement
Total interest income	$	14,410	$	—	$	—	$	14,410
Total interest expense		1,492		—		—		1,492
Provision for loan losses		1,496		—		—		1,496
Net interest income, after provision for loan losses		11,422		—		—		11,422
Non-interest income		4,810		899		12,323		18,032
Total income		16,232		899		12,323		29,454
Depreciation and amortization expense		252		8		14		274
All other non-interest expense		13,664		627		2,067		16,358
Income before income tax	$	2,316	$	264	$	10,242	$	12,822
Goodwill	$	20,499	$	3,692	$	—	$	24,191
Assets held for sale		—		3,000		—		3,000
Total assets	$	1,859,390	$	8,358	$	105,149	$	1,972,897

Three Months Ended September 30, 2019	Wealth Management		Capital Management		Mortgage		Consolidated
Income Statement
Total interest income	$	11,473	$	—	$	—	$	11,473
Total interest expense		3,533		—		—		3,533
Provision for loan losses		100		—		—		100
Net interest income, after provision for loan losses		7,840		—		—		7,840
Non-interest income		4,714		776		3,298		8,788
Total income		12,554		776		3,298		16,628
Depreciation and amortization expense		274		22		55		351
All other non-interest expense		10,434		701		1,956		13,091
Income before income tax	$	1,846	$	53	$	1,287	$	3,186
Goodwill	$	15,994	$	3,692	$	—	$	19,686
Assets held for sale		—		3,553		—		3,553
Total assets	$	1,195,340	$	8,528	$	68,057	$	1,271,925

Nine Months Ended September 30, 2020	Wealth Management		Capital Management			Mortgage		Consolidated
Income Statement
Total interest income	$	38,392	$	—		$	—	$	38,392
Total interest expense		5,747		—			—		5,747
Provision for loan losses		3,987		—			—		3,987
Net interest income, after provision for loan losses		28,658		—			—		28,658
Non-interest income		13,710		2,492			25,024		41,226
Total income		42,368		2,492			25,024		69,884
Depreciation and amortization expense		718		52			56		826
All other non-interest expense		34,619		2,772	(1)		5,706		43,097
Income (loss) before income tax	$	7,031	$	(332)		$	19,262	$	25,961
Goodwill	$	20,499	$	3,692		$	—	$	24,191
Assets held for sale		—		3,000			—		3,000
Total assets	$	1,859,390	$	8,358		$	105,149	$	1,972,897

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(1) Includes loss on assets held for sale of $0.6 million and $0.2 million SEC penalty.

Nine Months Ended September 30, 2019	Wealth Management		Capital Management			Mortgage		Consolidated
Income Statement
Total interest income	$	33,698	$	—		$	—	$	33,698
Total interest expense		9,827		—			—		9,827
Provision for loan losses		216		—			—		216
Net interest income, after provision for loan losses		23,655		—			—		23,655
Non-interest income		13,956		2,339			8,053		24,348
Total income		37,611		2,339			8,053		48,003
Depreciation and amortization expense		902		248			197		1,347
All other non-interest expense		30,935		3,709	(1)		4,710		39,354
Income (loss) before income tax	$	5,774	$	(1,618)		$	3,146	$	7,302
Goodwill	$	15,994	$	3,692		$	—	$	19,686
Assets held for sale		—		3,553			—		3,553
Total assets	$	1,195,340	$	8,528		$	68,057	$	1,271,925

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(1) Includes goodwill impairment charge of $1.6 million.

(1)