Note 16 - Segments

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(16) Segments

Bancorp’s principal activities include commercial banking and wealth management and trust. Commercial banking provides a full range of loan and deposit products to individual consumers and businesses. Commercial banking also includes Bancorp’s mortgage origination and securities brokerage activity. Wealth management and trust provides financial management services including investment management, trust and estate administration, and retirement plan services.

Financial information for each business segment reflects that which is specifically identifiable or allocated based on an internal allocation method. Income taxes are allocated based on the effective federal income tax rate adjusted for any tax exempt activity. All tax exempt activity and provision for loan losses have been allocated to the commercial banking segment. Measurement of performance of business segments is based on the management structure of Bancorp and is not necessarily comparable with similar information for any other financial institution. Information presented is also not necessarily indicative of the segments’ operations if they were independent entities.

Selected financial information by business segment for the three and nine month periods ended September 30, 2016 and 2015 follows:

			Wealth
	Commercial		management
(in thousands)	banking		and trust		Total
Three months ended September 30, 2016
Net interest income	$	24,690	$	70	$	24,760
Provision for loan losses		1,250		-		1,250
Wealth management and trust services		-		4,800		4,800
All other non-interest income		6,558		-		6,558
Non-interest expense		17,722		2,796		20,518
Income before income taxes		12,276		2,074		14,350
Income tax expense		3,142		741		3,883
Net income	$	9,134	$	1,333	$	10,467
Three months ended September 30, 2015
Net interest income	$	22,034	$	47	$	22,081
Provision (credit) for loan losses		-		-		-
Wealth management and trust services		-		4,373		4,373
All other non-interest income		5,612		-		5,612
Non-interest expense		15,785		2,645		18,430
Income before income taxes		11,861		1,775		13,636
Income tax expense		3,720		632		4,352
Net income	$	8,141	$	1,143	$	9,284

			Wealth
	Commercial		management
(in thousands)	banking		and trust		Total
Nine months ended September 30, 2016
Net interest income	$	71,985	$	194	$	72,179
Provision for loan losses		2,500		-		2,500
Wealth management and trust services		-		14,219		14,219
All other non-interest income		17,999		-		17,999
Non-interest expense		51,914		8,337		60,251
Income before income taxes		35,570		6,076		41,646
Income tax expense		9,064		2,171		11,235
Net income	$	26,506	$	3,905	$	30,411
Nine months ended September 30, 2015
Net interest income	$	65,350	$	146	$	65,496
Provision (credit) for loan losses		-		-		-
Wealth management and trust services		-		13,576		13,576
All other non-interest income		16,301		-		16,301
Non-interest expense		46,991		8,085		55,076
Income before income taxes		34,660		5,637		40,297
Income tax expense		10,749		2,007		12,756
Net income	$	23,911	$	3,630	$	27,541