NOTE 18, Segment Reporting

The Company operates in a decentralized fashion in three principal business segments: the Bank, the Trust, and the Parent. Revenues from the Bank's operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Trust's operating revenues consist principally of income from fiduciary and asset management fees. The Parent company's revenues are mainly interest and dividends received from the Bank and Trust companies.

The Company has no other segments.

The Company'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 technologies and marketing strategies.

Information about reportable segments, and reconciliation of such information to the Consolidated Financial Statements as of and for the years ended December 31 follows:

2017	Bank			Trust		Unconsolidated Parent			Eliminations			Consolidated
	(in thousands)
Revenues
Interest and dividend income	$	32,861		$	71	$	667		$	(665	)	$	32,934
Fiduciary and asset management fees		-			3,786		-			-			3,786
Other income		9,389			944		200			(261	)		10,272
Total operating income		42,250			4,801		867			(926	)		46,992

Expenses
Interest expense		3,010			-		-			2			3,012
Provision for loan losses		4,160			-		-			-			4,160
Salaries and employee benefits		20,968			2,800		445			-			24,213
Other expenses		14,109			1,075		811			(262	)		15,733
Total operating expenses		42,247			3,875		1,256			(260	)		47,118

Income (loss) before taxes		3			926		(389	)		(666	)		(126	)

Income tax expense (benefit)		(65	)		328		(360	)		-			(97	)

Net income (loss)	$	68		$	598	$	(29	)	$	(666	)	$	(29	)

Capital expenditures	$	613		$	6	$	-		$	-		$	619

Total assets	$	975,991		$	6,126	$	96,406		$	(96,697	)	$	981,826

2016	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
	(in thousands)
Revenues
Interest and dividend income	$	29,765	$	61	$	4,590		$	(4,590	)	$	29,826
Fiduciary and asset management fees		-		3,560		-			-			3,560
Other income		9,058		910		200			(262	)		9,906
Total operating income		38,823		4,531		4,790			(4,852	)		43,292

Expenses
Interest expense		2,574		-		-			-			2,574
Provision for loan losses		1,930		-		-			-			1,930
Salaries and employee benefits		16,801		2,671		406			-			19,878
Other expenses		13,179		1,041		995			(262	)		14,953
Total operating expenses		34,484		3,712		1,401			(262	)		39,335

Income (loss) before taxes		4,339		819		3,389			(4,590	)		3,957

Income tax expense (benefit)		288		280		(408	)		-			160

Net income (loss)	$	4,051	$	539	$	3,797		$	(4,590	)	$	3,797

Capital expenditures	$	887	$	4	$	-		$	-		$	891

Total assets	$	897,966	$	5,761	$	93,998		$	(94,759	)	$	902,966

2015	Bank			Trust		Unconsolidated Parent			Eliminations			Consolidated
	(in thousands)
Revenues
Interest and dividend income	$	30,242		$	54	$	4,009		$	(4,010	)	$	30,295
Fiduciary and asset management fees		-			3,617		-			-			3,617
Other income		8,548			1,032		200			(261	)		9,519
Total operating income		38,790			4,703		4,209			(4,271	)		43,431

Expenses
Interest expense		3,633			-		-			(1	)		3,632
Provision for loan losses		1,025			-		-			-			1,025
Salaries and employee benefits		17,630			2,685		432			-			20,747
Other expenses		13,254			1,010		336			(261	)		14,339
Total operating expenses		35,542			3,695		768			(262	)		39,743

Income (loss) before taxes		3,248			1,008		3,441			(4,009	)		3,688

Income tax expense (benefit)		(96	)		343		(193	)		-			54

Net income (loss)	$	3,344		$	665	$	3,634		$	(4,009	)	$	3,634

Capital expenditures	$	1,682		$	74	$	-		$	-		$	1,756

Total assets	$	891,877		$	5,694	$	93,191		$	(93,975	)	$	896,787

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

Both the Parent and the Trust companies maintain deposit accounts with the Bank, on terms substantially similar to those available to other customers. These transactions are eliminated to reach consolidated totals.

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