19.	SEGMENT REPORTING

Under

ASC Topic

280,

Segment Reporting

, certain information is disclosed for the

two

reportable operating segments of Bancshares: the Bank and ALC. The reportable segments were determined using the internal management reporting system. These segments comprise Bancshares’ and the Bank’s significant subsidiaries. The accounting policies for each segment are the same as those described in Note

“Summary of Significant Accounting Policies.” The segment results include certain overhead allocations and intercompany transactions that were recorded at current market prices. All intercompany transactions have been eliminated to determine the consolidated balances. The results for the

two

reportable segments of the Company are included in the tables below:

	2018
	Bank		ALC		All Other			Eliminations			Consolidated
	(Dollars in Thousands)
Total interest income	$	24,080	$	17,703	$	18		$	(4,663	)	$	37,138
Total interest expense		4,367		4,646		—			(4,663	)		4,350
Net interest income		19,713		13,057		18			—			32,788
Provision for loan and lease losses		215		2,407		—			—			2,622
Net interest income after provision		19,498		10,650		18			—			30,166
Total non-interest income		4,678		1,081		3,953			(4,170	)		5,542
Total non-interest expense		21,791		9,770		1,608			(852	)		32,317
Income (loss) before income taxes		2,385		1,961		2,363			(3,318	)		3,391
Provision for income taxes		704		430		(233	)		—			901
Net income (loss)	$	1,681	$	1,531	$	2,596		$	(3,318	)	$	2,490
Other significant items:
Total assets	$	793,530	$	103,067	$	85,137		$	(189,795	)	$	791,939
Total investment securities		153,871		—		78			—			153,949
Total loans, net		505,546		100,437		—			(91,116	)		514,867
Goodwill and core deposit intangible, net		9,312		—		—			—			9,312
Investment in subsidiaries		5		—		79,191			(79,191	)		5
Fixed asset additions		1,388		161		—			—			1,549
Depreciation and amortization expense		1,311		144		—			—			1,455
Total interest income from external customers		19,434		17,703		1			—			37,138
Total interest income from affiliates		4,646		—		17			(4,663	)		—

	2017
	Bank			ALC		All Other			Eliminations			Consolidated
	(Dollars in Thousands)
Total interest income	$	19,121		$	16,866	$	14		$	(4,901	)	$	31,100
Total interest expense		2,719			4,888		—			(4,901	)		2,706
Net interest income		16,402			11,978		14			—			28,394
Provision for loan and lease losses		(130	)		2,117		—			—			1,987
Net interest income after provision		16,532			9,861		14			—			26,407
Total non-interest income		3,491			1,006		1,054			(885	)		4,666
Total non-interest expense		18,096			9,524		1,478			(649	)		28,449
Income (loss) before income taxes		1,927			1,343		(410	)		(236	)		2,624
Provision for income taxes		2,365			953		(283	)		—			3,035
Net income (loss)	$	(438	)	$	390	$	(127	)	$	(236	)	$	(411	)
Other significant items:
Total assets	$	628,260		$	94,488	$	81,446		$	(178,613	)	$	625,581
Total investment securities		180,070			—		80			—			180,150
Total loans, net		337,165			91,439		—			(82,483	)		346,121
Investment in subsidiaries		5			—		75,725			(75,725	)		5
Fixed asset additions		9,107			109		—			—			9,216
Depreciation and amortization expense		971			162		—			—			1,133
Total interest income from external customers		14,233			16,866		1			—			31,100
Total interest income from affiliates		4,888			—		13			(4,901	)		—