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Segment Reporting
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Reporting

 19. SEGMENT REPORTING

 

The Corporation operations are divided into four reportable business segments: The Retail and Commercial Banking Services, Insurance Services, Wealth Strategies Services, and Financial Management Services. These operating segments have been identified primarily based on the Corporation’s organizational structure.

 

The Retail and Commercial Banking Services segment serves consumer and commercial customers by offering a variety of loan and deposit products, and other traditional banking services.

 

The Insurance Services segment offers clients a full spectrum of commercial and personal lines insurance products including life, health, property, and casualty insurance.

 

The Wealth Strategies Services segment provides personal trust administration, estate settlement, investment management, employee retirement benefit services, and the Individual Retirement Account (IRA) administration. Also, this segment offers full-service retail brokerage which includes the sale of retail investment products including stocks, bonds, mutual funds, and annuities.

 

The Financial Management Services segment is responsible for the management of the investment securities portfolio. It also is responsible for managing financial risks, including liquidity and interest rate risk.

 

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Corporation evaluates performance based on profit or loss from operations after income taxes not including nonrecurring gains or losses.

 

The Corporation’s reportable segments are strategic business units that offer different products and services. They are managed separately because each segment appeals to different markets and, accordingly, requires different technology and marketing strategies.

 

The Corporation allocates capital and funds used or funds provided for each reportable business segment. Also, each segment is credited or charged for the cost of funds provided or used. These credits and charges are reflected as net intersegment interest income (expense) in the table below. The Corporation does allocate income taxes to the segments. Other revenue represents noninterest income, exclusive of the net gain (loss) on disposition of assets and expenses associated with administrative activities which are not allocated to the segments. Those expenses include audit, compliance, investor relations, marketing, personnel, and other executive or parent company expenditures.

 

The Corporation does not have operating segments other than those reported. Parent Company and the Administrative Offices financial information is included in the “Other” category, and is deemed to represent an overhead function rather than an operating segment. The Administrative Offices include audit, marketing, information technology, personnel, and the executive office.

 

The Corporation does not have a single external customer from which it derives 10% or more of its revenue and operates in one geographical area.

  

Information about reportable business segments, and reconciliation of such information to the consolidated financial statements for the years ended December 31, 2019, 2018, and 2017, are as follows:

 

Segment Reporting
For the year ended December 31, 2019
    Retail and Commercial Banking   Insurance Services   Wealth Strategies   Financial Management   Inter-segment Elimination   Other   Totals
Net Interest Income (expense)                                                        
  external customers   $ 18,365     $ —       $ (11 )   $ 2,170     $ —       $ 59     $ 20,583  
Net intersegment interest                                                        
  income (expense)     1,885       27       (1 )     (1,932 )     (17 )     38       —    
Net interest income     20,250       27       (12 )     238       (17 )     97       20,583  
                                                         
Provision for Loan Losses     857       —         —         —         —         —         857  
                                                         
Noninterest Income (expense)                                                        
  external customers     1,832       1,715       581       421       —         268       4,817  
Intersegment noninterest                                                        
  Income (expense)     (26 )     26       30       —         (30 )     —         —    
Total Noninterest Income     1,806       1,741       714       421       (30 )     268       4,817  
                                                         
Noninterest Expenses:                                                        
Depreciation     1,048       36       20       59       —         37       1,200  
Amortization of intangibles     —         4       —         —         —         —         4  
Other Noninterest expenses     11,607       1,286       635       800       —         2,574       16,902  
Total Noninterest expenses     12,655       1,326       655       859       —         2,611       18,106  
                                                         
Pre-tax income     8,544       442       (56 )     (200 )     (47 )     (2,246 )     6,437  
                                                         
Provision for Income Taxes     1,545       81       (11 )     (47 )     —         (421 )     1,147  
                                                         
Net Income   $ 6,999     $ 361     $ (45 )   $ (153 )   $ (47 )   $ (1,825 )   $ 5,290  
                                                         
Assets   $ 643,471     $ 2,327     $ 205     $ 169,895     $ (261,868 )   $ 1,106     $ 555,136  
                                                         
Expenditures of Fixed Assets   $ 578     $ 6     $ 17     $ 16     $ —       $ —       $ 617  
                                                         
Amounts included in the “Other” column are as follows:                                                        
              Other                                          
Net interest Income:                                                        
  Parent Company           $ 59                                          

Executive Office

Noninterest Income:

             38                                          
  Executive office miscellaneous income             268                                          
Noninterest Expenses:                                                        
  Parent Company corporate expenses             352                                          
  Executive office expenses not allocated
    to segments		             2,259                                          
Provision for Income taxes:                                                        
  Parent Company income taxes (benefit)             (82 )                                        
  Executive office income taxes not allocated
    to segments		             (339 )                                        
Net Income:           $ (1,825 )                                        
                                                         
Segment assets:                                                        
    Parent Company assets,
       after intercompany elimination		           $ 1,106                                          

 

Segment Reporting
For the year ended December 31, 2018
    Retail and Commercial Banking   Insurance Services   Wealth Strategies   Financial Management   Inter-segment Elimination   Other   Totals
Net Interest Income (expense)                                                        
  external customers   $ 16,334     $ —       $ —       $ 2,193     $ —       $ 45     $ 18,572  
Net intersegment interest                                                        
  income (expense)     1,818       20       (7 )     (1,831 )     —         —         —    
Net interest income     18,152       20       (7 )     362       —         45       18,572  
                                                         
Provision for Loan Losses     830       —         —         —         —         —         830  
                                                         
Noninterest Income (expense)                                                        
  external customers     1,765       1,604       665       259       —         (86 )     4,207  
Intersegment noninterest                                                        
  Income (expense)     (20 )     20       31       —         (31 )     —         —    
Total Noninterest Income     1,745       1,624       696       259       (31 )     (86 )     4,207  
                                                         
Noninterest Expenses:                                                        
Depreciation     845       37       18       56       —         81       1,037  
Amortization of intangibles     —         16       —         —         —         —         16  
Other Noninterest expenses     10,974       1,158       624       752       —         2,073       15,581  
Total Noninterest expenses     11,819       1,211       642       808       —         2,154       16,634  
                                                         
Pre-tax income     7,248       433       47       (187 )     (31 )     (2,195 )     5,315  
                                                         
Provision for Income Taxes     1,184       68       3       (210 )     —         (377 )     668  
                                                         
Net Income   $ 6,064     $ 365     $ 44     $ 23     $ (31 )   $ (1,818 )   $ 4,647  
                                                         
Assets   $ 628,222     $ 1,971     $ 267     $ 132,033     $ (229,108 )   $ 1,448     $ 534,833  
                                                         
Expenditures of Fixed Assets   $ 3,321     $ 2     $ 8     $ 57     $ —       $ —       $ 3,388  
                                                         
Amounts included in the “Other” column are as follows:                                                        
              Other                                          
Net interest Income:                                                        
  Parent Company           $ 45                                          
Noninterest Income:                                                        
  Executive office miscellaneous income             (86 )                                        
Noninterest Expenses:                                                        
  Parent Company corporate expenses             188                                          
  Executive office expenses not allocated
    to segments		             1,966                                          
Provision for Income taxes:                                                        
  Parent Company income taxes (benefit)             (40 )                                        
  Executive office income taxes not allocated
    to segments		             (337 )                                        
Net Income:           $ (1,818 )                                        
                                                         
Segment assets:                                                        
    Parent Company assets,
       after intercompany elimination		           $ 1,448                                          

 

Segment Reporting
For the year ended December 31, 2017
    Retail and Commercial Banking   Insurance Services   Wealth Strategies   Financial Management   Inter-segment Elimination   Other   Totals
Net Interest Income (expense)                                                        
  external customers   $ 15,119     $ —       $ —       $ 2,099     $ —       $ 26     $ 17,244  
Net intersegment interest                                                        
  income (expense)     1,817       16       (6 )     (1,827 )     —         —         —    
Net interest income     16,936       16       (6 )     272       —         26       17,244  
                                                         
Provision for Loan Losses     300       —         —         —         —         —         300  
                                                         
Noninterest Income (expense)                                                        
  external customers     2,099       1,525       612       75       —         1       4,312  
Intersegment noninterest                                                        
  Income (expense)     (16 )     16       32       —         (32 )     —         —    
Total Noninterest Income     2,083       1,541       644       75       (32 )     1       4,312  
                                                         
Noninterest Expenses:                                                        
Depreciation     685       33       24       56       —         83       881  
Amortization of intangibles     —         16       —         —         —         —         16  
Other Noninterest expenses     10,328       1,119       592       780       —         2,113       14,932  
Total Noninterest expenses     11,013       1,168       616       836       —         2,196       15,829  
                                                         
Pre-tax income     7,706       389       22       (489 )     (32 )     (2,169 )     5,427  
                                                         
Provision for Income Taxes     1,784       86       (2 )     306       —         (554 )     1,620  
                                                         
Net Income   $ 5,922     $ 303     $ 24     $ (795 )   $ (32 )   $ (1,615 )   $ 3,807  
                                                         
Assets   $ 567,723     $ 1,687     $ 177     $ 138,598     $ (219,840 )   $ 727     $ 489,072  
                                                         
Expenditures of Fixed Assets   $ 1,888     $ 48     $ 2     $ 17     $ —       $ —       $ 1,955  
                                                         
Amounts included in the “Other” column are as follows:                                                        
              Other                                          
Net interest Income:                                                        
  Parent Company           $ 26                                          
Noninterest Income:                                                        
  Executive office miscellaneous income             1                                          
Noninterest Expenses:                                                        
  Parent Company corporate expenses             172                                          
  Executive office expenses not allocated
    to segments		             2,024                                          
Provision for Income taxes:                                                        
  Parent Company income taxes (benefit)             (88 )                                        
  Executive office income taxes not allocated
    to segments		             (466 )                                        
Net Income:           $ (1,615 )                                        
                                                         
Segment assets:                                                        
    Parent Company assets,
       after intercompany elimination		           $ 727