Note 20 - Segments

9 Months Ended

Sep. 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 million, of which $682,000 relates to a bank acquisition in 1996, $12 million relates to the 2019 KSB acquisition and $123 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 September 30, 2021								Three months ended September 30, 2020
(in thousands)	Commercial Banking			WM&T		Total			Commercial Banking		WM&T		Total
Net interest income	$	45,414		$	69	$	45,483		$	33,619	$	76	$	33,695
Provision for credit losses		(1,525	)		—		(1,525	)		4,968		—		4,968
Wealth management and trust services		—			7,128		7,128			—		5,657		5,657
All other non-interest income		10,486			—		10,486			7,386		—		7,386
Non-interest expenses		31,072			3,486		34,558			22,512		3,134		25,646
Income before income tax expense		26,353			3,711		30,064			13,525		2,599		16,124
Income tax expense		6,070			832		6,902			1,027		564		1,591
Net income	$	20,283		$	2,879	$	23,162		$	12,498	$	2,035	$	14,533
Segment assets	$	6,177,355		$	3,833	$	6,181,188		$	4,361,576	$	3,553	$	4,365,129

	Nine months ended September 30, 2021						Nine months ended September 30, 2020
(in thousands)	Commercial Banking		WM&T		Total		Commercial Banking		WM&T		Total
Net interest income	$	124,672	$	220	$	124,892	$	99,423	$	246	$	99,669
Provision for credit losses		1,147		—		1,147		17,918		—		17,918
Wealth management and trust services		—		20,234		20,234		—		17,601		17,601
All other non-interest income		27,012		—		27,012		20,600		—		20,600
Non-interest expenses		97,249		10,459		107,708		63,063		9,567		72,630
Income before income tax expense		53,288		9,995		63,283		39,042		8,280		47,322
Income tax expense		11,058		2,169		13,227		4,392		1,797		6,189
Net income	$	42,230	$	7,826	$	50,056	$	34,650	$	6,483	$	41,133
Segment assets	$	6,177,355	$	3,833	$	6,181,188	$	4,361,576	$	3,553	$	4,365,129