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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.