SEGMENT REPORTING

3 Months Ended

Mar. 31, 2021

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 14 - 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 2020 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 as of and for the three months ended March 31, 2021 and 2020 (in thousands):

As of and for the three months ended March 31, 2021	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	14,499	$	—	$	14,499
Total interest expense		1,446		—		1,446
Provision for loan losses		—		—		—
Net interest income, after provision for loan losses		13,053		—		13,053
Non-interest income		5,418		5,197		10,615
Total income		18,471		5,197		23,668
Depreciation and amortization expense		258		14		272
All other non-interest expense		12,296		3,061		15,357
Income before income tax	$	5,917	$	2,122	$	8,039
Goodwill	$	24,191	$	—	$	24,191
Total assets	$	2,025,720	$	185,858	$	2,211,578

As of and for the three months ended March 31, 2020	Wealth 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, after provision for loan losses		8,564			—		8,564
Non-interest income		5,263			2,504		7,767
Total income		13,827			2,504		16,331
Depreciation and amortization expense		256			20		276
All other non-interest expense		12,601	(1)		1,770		14,371
Income before income tax	$	970		$	714	$	1,684
Goodwill	$	19,686		$	—	$	19,686
Assets held for sale		3,000			—		3,000
Total assets	$	1,289,762		$	64,101	$	1,353,863

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