Note 20 - Segments

6 Months Ended

Jun. 30, 2021

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 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 $136.5 million, of which $682,000 relates to a bank acquisition in 1996, $11.8 million relates to the 2019 KSB acquisition and $124.0 million relates to the KB 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 June 30, 2021						Three months ended June 30, 2020
	Commercial						Commercial
(in thousands)	Banking		WM&T		Total		Banking		WM&T		Total
Net interest income	$	41,516	$	68	$	41,584	$	33,443	$	85	$	33,528
Provision for credit losses		4,147		—		4,147		7,025		—		7,025
Wealth management and trust services		—		6,858		6,858		—		5,726		5,726
All other non-interest income		8,930		—		8,930		6,896		—		6,896
Non-interest expenses		44,481		3,696		48,177		20,288		3,121		23,409
Income before income tax expense		1,818		3,230		5,048		13,026		2,690		15,716
Income tax expense		190		674		864		1,764		584		2,348
Net income	$	1,628	$	2,556	$	4,184	$	11,262	$	2,106	$	13,368
Segment assets	$	6,084,185	$	3,887	$	6,088,072	$	4,330,893	$	3,640	$	4,334,533

	Six months ended June 30, 2021						Six months ended June 30, 2020
	Commercial						Commercial
(in thousands)	Banking		WM&T		Total		Banking		WM&T		Total
Net interest income	$	79,258	$	151	$	79,409	$	65,804	$	170	$	65,974
Provision for credit losses		2,672		—		2,672		12,950		—		12,950
Wealth management and trust services		—		13,106		13,106		—		11,944		11,944
All other non-interest income		16,526		—		16,526		13,214		—		13,214
Non-interest expenses		66,177		6,973		73,150		40,551		6,433		46,984
Income before income tax expense		26,935		6,284		33,219		25,517		5,681		31,198
Income tax expense		4,988		1,337		6,325		3,365		1,233		4,598
Net income	$	21,947	$	4,947	$	26,894	$	22,152	$	4,448	$	26,600
Segment assets	$	6,084,185	$	3,887	$	6,088,072	$	4,330,893	$	3,640	$	4,334,533