Note 20 - Segments

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(20) Segments

Bancorp’s principal activities include commercial banking and WM&T. 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 investment products sales activity. WM&T 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 have been allocated fully 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.

Principally, all of the net assets of Bancorp are involved in the commercial banking segment. Goodwill of $12.6 million, of which $682,000 relates to a bank acquisition in 1996 and $11.9 million related to the May 2019 KSB acquisition, has been assigned to the commercial banking segment. Assets assigned to WM&T primarily consist of net premises and equipment.

Selected financial information by business segment follows: 

			Wealth
	Commercial		Management
(In thousands)	Banking		and Trust		Total Company
Three months ended September 30, 2019
Net interest income	$	31,995	$	75	$	32,070
Provision		400		—		400
Wealth management and trust services		—		5,738		5,738
All other non-interest income		7,566		—		7,566
Non-interest expenses		20,822		3,135		23,957
Income before income tax expense		18,339		2,678		21,017
Income tax expense		3,202		581		3,783
Net income	$	15,137	$	2,097	$	17,234
Segment assets	$	3,530,198	$	3,728	$	3,533,926
Three months ended September 30, 2018
Net interest income	$	28,462	$	59	$	28,521
Provision		735		—		735
Wealth management and trust services		—		5,380		5,380
All other non-interest income		6,046		—		6,046
Non-interest expenses		18,774		3,007		21,781
Income before income tax expense		14,999		2,432		17,431
Income tax expense		3,027		528		3,555
Net income	$	11,972	$	1,904	$	13,876
Segment assets	$	3,320,838	$	3,959	$	3,324,797

			Wealth
	Commercial		management
(In thousands)	Banking		and Trust		Total Company
Nine months ended September 30, 2019
Net interest income	$	92,266	$	235	$	92,501
Provision		1,000		—		1,000
Wealth management and trust services		—		16,839		16,839
All other non-interest income		19,790		—		19,790
Non-interest expenses		62,725		9,335		72,060
Income before income tax expense		48,331		7,739		56,070
Income tax expense		4,973		1,679		6,652
Net income	$	43,358	$	6,060	$	49,418
Segment assets	$	3,530,198	$	3,728	$	3,533,926
Nine months ended September 30, 2018
Net interest income	$	84,312	$	192	$	84,504
Provision		2,705		—		2,705
Wealth management and trust services		—		16,224		16,224
All other non-interest income		17,546		—		17,546
Non-interest expenses		55,572		9,372		64,944
Income before income tax expense		43,581		7,044		50,625
Income tax expense		8,237		1,529		9,766
Net income	$	35,344	$	5,515	$	40,859
Segment assets	$	3,320,838	$	3,959	$	3,324,797