Note 25 - Segments

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(25) 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 $12.5 million, of which $682,000 relates to a bank acquisition in 1996 and $11.8 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:

	Commercial
As of and for the Year ended December 31, 2019 (in thousands)	Banking		WM&T		Total
Net interest income	$	124,902	$	319	$	125,221
Provision for loan and leases		1,000		—		1,000
Wealth management and trust services		—		22,643		22,643
All other non-interest income		27,147		—		27,147
Non-interest expenses		85,642		12,709		98,351
Income before income tax expense		65,407		10,253		75,660
Income tax expense		7,368		2,225		9,593
Net income	$	58,039	$	8,028	$	66,067
Total assets	$	3,720,502	$	3,695	$	3,724,197

	Commercial
As of and for the Year ended December 31, 2018 (in thousands)	Banking		WM&T		Total
Net interest income	$	114,161	$	255	$	114,416
Provision for loan and leases		2,705		—		2,705
Wealth management and trust services		—		21,536		21,536
All other non-interest income		23,810		—		23,810
Non-interest expenses		76,963		12,546		89,509
Income before income tax expense		58,303		9,245		67,548
Income tax expense		10,025		2,006		12,031
Net income	$	48,278	$	7,239	$	55,517
Total assets	$	3,299,169	$	3,755	$	3,302,924

	Commercial
As of and for the Year ended December 31, 2017 (in thousands)	Banking		WM&T		Total
Net interest income	$	103,352	$	301	$	103,653
Provision for loan and leases		2,550		—		2,550
Wealth management and trust services		—		20,505		20,505
All other non-interest income		23,994		—		23,994
Non-interest expenses		78,181		12,239		90,420
Income before income tax expense		46,615		8,567		55,182
Income tax expense		14,080		3,059		17,139
Net income	$	32,535	$	5,508	$	38,043
Total assets	$	3,237,656	$	1,990	$	3,239,646