Note 18 - Segments

9 Months Ended

Sep. 30, 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 banking and investment products sales activity. WM&T provides custom-tailored financial planning, investment management, company retirement plan management, retirement planning, trust and estate services in all markets in which Bancorp operates. The magnitude of WM&T revenue distinguishes Bancorp from other community banks of similar asset size.

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:

	Three months ended September 30, 2020						Three months ended September 30, 2019
(dollars in thousands)	Commercial Banking		WM&T		Total		Commercial Banking		WM&T		Total
Net interest income	$	33,619	$	76	$	33,695	$	32,031	$	75	$	32,106
Provision for credit losses		4,418		—		4,418		400		—		400
Wealth management and trust services		—		5,657		5,657		—		5,738		5,738
All other non-interest income		7,386		—		7,386		7,471		—		7,471
Non-interest expenses		23,062		3,134		26,196		20,763		3,135		23,898
Income before income tax expense		13,525		2,599		16,124		18,339		2,678		21,017
Income tax expense		1,027		564		1,591		3,202		581		3,783
Net income	$	12,498	$	2,035	$	14,533	$	15,137	$	2,097	$	17,234
Segment assets		4,361,576	$	3,553	$	4,365,129		3,530,198	$	3,728	$	3,533,926

	Nine months ended September 30, 2020						Nine months ended September 30, 2019
(dollars in thousands)	Commercial Banking		WM&T		Total		Commercial Banking		WM&T		Total
Net interest income	$	99,423	$	246	$	99,669	$	92,356	$	235	$	92,591
Provision for credit losses		15,518		—		15,518		1,000		—		1,000
Wealth management and trust services		—		17,601		17,601		—		16,839		16,839
All other non-interest income		20,600		—		20,600		19,602		—		19,602
Non-interest expenses		65,463		9,567		75,030		62,627		9,335		71,962
Income before income tax expense		39,042		8,280		47,322		48,331		7,739		56,070
Income tax expense		4,392		1,797		6,189		4,973		1,679		6,652
Net income	$	34,650	$	6,483	$	41,133	$	43,358	$	6,060	$	49,418
Segment assets		4,361,576	$	3,553	$	4,365,129		3,530,198	$	3,728	$	3,533,926