Segment Information

6 Months Ended

Jun. 30, 2019

Segment Information:

The reportable segments are determined by the products and services offered, primarily distinguished between banking, trust and retirement consulting operations. They are also distinguished by the level of information provided to the chief operating decision makers in the Company, who use such information to review performance of various components of the business, which are then aggregated. Loans, investments, and deposits provide the revenues in the banking operation. All operations are domestic. Significant segment totals are reconciled to the financial statements as follows:

(In Thousands of Dollars)	Trust Segment		Bank Segment		Retirement Consulting Segment		Eliminations and Others			Consolidated Totals
June 30, 2019
Goodwill and other intangibles	$	4,105	$	37,626	$	2,389	$	(822	)	$	43,298
Total assets	$	12,554	$	2,385,763	$	3,302	$	4,330		$	2,405,949

(In Thousands of Dollars)	Trust Segment		Bank Segment		Retirement Consulting Segment		Eliminations and Others			Consolidated Totals
December 31, 2018
Goodwill and other intangibles	$	4,199	$	38,113	$	2,462	$	(822	)	$	43,952
Total assets	$	11,490	$	2,309,644	$	3,060	$	4,670		$	2,328,864

(In Thousands of Dollars)	Trust Segment		Bank Segment		Retirement Consulting Segment		Eliminations and Others			Consolidated Totals
For Three Months Ended June 30, 2019
Net interest income	$	40	$	20,474	$	0	$	(23	)	$	20,491
Provision for loan losses		0		750		0		0			750
Service fees, security gains and other noninterest income		1,842		4,789		450		(87	)		6,994
Noninterest expense		1,225		14,191		295		274			15,985
Amortization and depreciation expense		52		615		40		12			719
Income before taxes		605		9,707		115		(396	)		10,031
Income taxes		128		1,474		24		(138	)		1,488
Net income	$	477	$	8,233	$	91	$	(258	)	$	8,543

(In Thousands of Dollars)	Trust Segment		Bank Segment		Retirement Consulting Segment		Eliminations and Others			Consolidated Totals
For Six Months Ended June 30, 2019
Net interest income	$	78	$	40,423	$	0	$	(45	)	$	40,456
Provision for loan losses		0		1,300		0		0			1,300
Service fees, security gains and other noninterest income		3,740		9,094		808		(128	)		13,514
Noninterest expense		2,488		27,719		633		413			31,253
Amortization and depreciation expense		104		1,220		80		24			1,428
Income before taxes		1,226		19,278		95		(610	)		19,989
Income taxes		258		3,030		20		(250	)		3,058
Net income	$	968	$	16,248	$	75	$	(360	)	$	16,931

(In Thousands of Dollars)	Trust Segment		Bank Segment		Retirement Consulting Segment		Eliminations and Others			Consolidated Totals
For Three Months Ended June 30, 2018
Net interest income	$	34	$	19,551	$	0	$	(23	)	$	19,562
Provision for loan losses		0		750		0		0			750
Service fees, security gains and other noninterest income		1,784		4,121		465		(64	)		6,306
Noninterest expense		1,155		12,884		389		280			14,708
Amortization and depreciation expense		62		625		51		12			750
Income before taxes		601		9,413		25		(379	)		9,660
Income taxes		127		1,591		5		(136	)		1,587
Net income	$	474	$	7,822	$	20	$	(243	)	$	8,073

(In Thousands of Dollars)	Trust Segment		Bank Segment		Retirement Consulting Segment		Eliminations and Others			Consolidated Totals
For Six Months Ended June 30, 2018
Net interest income	$	65	$	38,484	$	0	$	(41	)	$	38,508
Provision for loan losses		0		1,525		0		0			1,525
Service fees, security gains and other noninterest income		3,622		7,975		844		(125	)		12,316
Noninterest expense		2,432		25,436		701		486			29,055
Amortization and depreciation expense		125		1,249		101		24			1,499
Income before taxes		1,130		18,249		42		(676	)		18,745
Income taxes		238		2,944		9		(245	)		2,946
Net income	$	892	$	15,305	$	33	$	(431	)	$	15,799

The Bank segment includes Farmers National Insurance and Farmers of Canfield Investment Co.