XML 44 R26.htm IDEA: XBRL DOCUMENT

SEGMENT REPORTING

12 Months Ended

Dec. 31, 2020

NOTE 19 - SEGMENT REPORTING

The Company’s reportable segments consist of Wealth 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 Company completed the sale of its LA fixed income team in the fourth quarter 2020. The LA fixed income team and the related assets made up a majority of the previously reported Capital Management Segment. As a result of the sale the Company evaluated its reportable segments and determined the remaining assets following the sale in the Capital Management segment no longer meet the thresholds of income before income tax to be a reportable segment. The residual assets that remained in the Capital Management segment are now included in the Wealth Management segment.

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 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.

For all periods presented, the Wealth Management segment includes the previously reported key metrics of the previously reported Capital Management segment.

The tables below present the financial information for each segment that is specifically identifiable or based on allocations using internal methods for the years ended December 31, 2020 and 2019 (in thousands):


Year Ended December 31, 2020	Wealth Management⁽¹⁾			Mortgage		Consolidated
Income Statement
Total interest income	$	53,334		$	—	$	53,334
Total interest expense		7,232			—		7,232
Provision for loan losses		4,682			—		4,682
Net interest income, after provision for loan losses		41,420			—		41,420
Non-interest income		21,836			29,344		51,180
Total income		63,256			29,344		92,600
Depreciation and amortization expense		1,035			70		1,105
All other non-interest expense		50,135	⁽²⁾		8,297		58,432
Income before income tax	$	12,086		$	20,977	$	33,063

Goodwill	$	24,191		$	—	$	24,191
Total assets	$	1,798,416		$	175,239	$	1,973,655

______________________________________

(1)	Includes financial information previously reported under the Capital Management segment.

(2)	Includes loss on assets held for sale of $0.6 million and $0.2 million SEC penalty in the previously reported Capital Management segment.


Year Ended December 31, 2019	Wealth Management⁽¹⁾			Mortgage		Consolidated
Income Statement
Total interest income	$	45,051		$	—	$	45,051
Total interest expense		12,990			—		12,990
Provision for loan losses		662			—		662
Net interest income, after provision for loan losses		31,399			—		31,399
Non-interest income		21,902			10,675		32,577
Total income		53,301			10,675		63,976
Depreciation and amortization expense		1,453			218		1,671
All other non-interest expense		45,696	⁽²⁾		6,417		52,113
Income (loss) before income tax	$	6,152		$	4,040	$	10,192

Goodwill	$	19,686		$	—	$	19,686
Assets held for sale		3,553			—		3,553
Total assets	$	1,204,620		$	47,062	$	1,251,682

_________________________________________________

(1)	Includes financial information previously reported under the Capital Management segment.

(2)	Includes goodwill impairment charge of $1.6 million in the previously reported Capital Management segment.