Note 19 - Segments

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(19) 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 investment management, financial & retirement planning and trust & estate services, as well as retirement plan management for businesses and corporations 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 2019 KSB 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 March 31, 2021								Three months ended March 31, 2020
(in thousands)	Commercial Banking			WM&T		Total			Commercial Banking		WM&T		Total
Net interest income	$	37,742		$	83	$	37,825		$	32,361	$	85	$	32,446
Provision for credit losses		(1,475	)		—		(1,475	)		5,925		—		5,925
Wealth management and trust services		—			6,248		6,248			—		6,218		6,218
All other non-interest income		7,596			—		7,596			6,318		—		6,318
Non-interest expenses		21,696			3,277		24,973			20,263		3,312		23,575
Income before income tax expense		25,117			3,054		28,171			12,491		2,991		15,482
Income tax expense		4,798			663		5,461			1,601		649		2,250
Net income	$	20,319		$	2,391	$	22,710		$	10,890	$	2,342	$	13,232
Segment assets	$	4,790,344		$	3,731	$	4,794,075		$	3,781,063	$	3,523	$	3,784,586