Note 22 - Segments

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(22) 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.

The majority of the net assets of Bancorp are involved in the commercial banking segment. As of March 31, 2022, goodwill totaling $203 million was recorded on Bancorp’s consolidated balance sheets, of which $175 million is attributed to the commercial banking segment and $28 million is attributed to WM&T. The portion of total goodwill attributed to WM&T relates entirely to the CB acquisition, which generated $67 million in total goodwill. With the exception of goodwill attributed to WM&T through the CB acquisition, assets assigned to WM&T consist primarily 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, 2022						Three months ended March 31, 2021
(in thousands)	Commercial Banking		WM&T		Total		Commercial Banking			WM&T		Total
Net interest income	$	48,653	$	107	$	48,760	$	37,742		$	83	$	37,825
Provision for credit losses		2,279		—		2,279		(1,475	)		—		(1,475	)
Wealth management and trust services		—		8,469		8,469		—			6,248		6,248
All other non-interest income		10,734		—		10,734		7,596			—		7,596
Non-interest expenses		51,690		4,607		56,297		21,696			3,277		24,973
Income before income tax expense		5,418		3,969		9,387		25,117			3,054		28,171
Income tax expense		633		812		1,445		4,798			663		5,461
Net income		4,785		3,157		7,942		20,319			2,391		22,710
Less net income attributable to NCI		-		36		36		-			-		-
Net income attributable to stockholders	$	4,785	$	3,121	$	7,906	$	20,319		$	2,391	$	22,710
Segment assets	$	7,744,189	$	32,963	$	7,777,152	$	4,790,344		$	3,731	$	4,794,075