Note 22 - Segments

9 Months Ended

Sep. 30, 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 September 30, 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 September 30, 2022						Three months ended September 30, 2021
(in thousands)	Commercial Banking		WM&T		Total		Commercial Banking			WM&T		Total
Net interest income	$	62,270	$	106	$	62,376	$	45,414		$	69	$	45,483
Provision for credit losses		4,803		—		4,803		(1,525	)		—		(1,525	)
Wealth management and trust services		—		9,152		9,152		—			7,128		7,128
All other non-interest income		15,712		—		15,712		10,486			—		10,486
Non-interest expenses		39,370		5,503		44,873		31,072			3,486		34,558
Income before income tax expense		33,809		3,755		37,564		26,353			3,711		30,064
Income tax expense		8,209		815		9,024		6,070			832		6,902
Net income		25,600		2,940		28,540		20,283			2,879		23,162
Less net income attributable to NCI		85		—		85		—			—		—
Net income attributable to stockholders	$	25,515	$	2,940	$	28,455	$	20,283		$	2,879	$	23,162
Segment assets	$	7,522,113	$	32,097	$	7,554,210	$	6,177,355		$	3,833	$	6,181,188

	Nine months ended September 30, 2022						Nine months ended September 30, 2021
(in thousands)	Commercial Banking		WM&T		Total		Commercial Banking		WM&T		Total
Net interest income	$	167,811	$	309	$	168,120	$	124,672	$	220	$	124,892
Provision for credit losses		6,882		—		6,882		1,147		—		1,147
Wealth management and trust services		—		26,890		26,890		—		20,234		20,234
All other non-interest income		39,117		—		39,117		27,012		—		27,012
Non-interest expenses		129,936		15,909		145,845		97,249		10,459		107,708
Income before income tax expense		70,110		11,290		81,400		53,288		9,995		63,283
Income tax expense		15,566		2,450		18,016		11,058		2,169		13,227
Net income		54,544		8,840		63,384		42,230		7,826		50,056
Less net income attributable to NCI		229		—		229		—		—		—
Net income attributable to stockholders	$	54,315	$	8,840	$	63,155	$	42,230	$	7,826	$	50,056
Segment assets	$	7,522,113	$	32,097	$	7,554,210	$	6,177,355	$	3,833	$	6,181,188