Note 18 - Segments

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(18)     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 relates to the May 2019 acquisition, has been assigned to the commercial banking segment. Assets assigned to WM&T primarily consist of net premises and equipment and a receivable related to fees earned that have not been collected.

Selected financial information by business segment follows:

			Wealth
Three months ended March 31, 2020	Commercial		Management
(in thousands)	Banking		and Trust		Total Company
Net interest income	$	32,361	$	85	$	32,446
Provision		5,550		—		5,550
Wealth management and trust services		—		6,218		6,218
All other non-interest income		6,318		—		6,318
Non-interest expenses		20,638		3,312		23,950
Income before income tax expense		12,491		2,991		15,482
Income tax expense		1,601		649		2,250
Net income	$	10,890	$	2,342	$	13,232
Segment assets	$	3,781,063	$	3,523	$	3,784,586

			Wealth
Three months ended March 31, 2019	Commercial		Management
(In thousands)	Banking		and Trust		Total Company
Net interest income	$	29,608	$	76	$	29,684
Provision		600		—		600
Wealth management and trust services		—		5,439		5,439
All other non-interest income		5,569		—		5,569
Non-interest expenses		19,579		3,033		22,612
Income before income tax expense		14,998		2,482		17,480
Income tax expense		1,300		539		1,839
Net income	$	13,698	$	1,943	$	15,641
Segment assets	$	3,277,415	$	3,601	$	3,281,016