Note 22 - Segments

6 Months Ended

Jun. 30, 2023

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 June 30, 2023, goodwill totaling $194 million was recorded on Bancorp’s consolidated balance sheets, of which $172 million is attributed to the commercial banking segment and $22 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, $8.5 million of which was subsequently written off as a result of Bancorp selling its interest in LFA effective December 31, 2022. With the exception of goodwill attributed to WM&T through the CB acquisition, assets assigned to WM&T consist primarily of a CLI asset associated with the WM&T business added through the CB acquisition, 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, 2023						Three months ended June 30, 2022
(in thousands)	Commercial Banking		WM&T		Total		Commercial Banking			WM&T		Total
Net interest income	$	60,796	$	133	$	60,929	$	56,888		$	96	$	56,984
Provision for credit losses		2,350		—		2,350		(200	)		—		(200	)
Wealth management and trust services		—		10,146		10,146		—			9,495		9,495
All other non-interest income		12,714		—		12,714		12,445			—		12,445
Non-interest expenses		39,877		5,923		45,800		38,876			5,799		44,675
Income before income tax expense		31,283		4,356		35,639		30,657			3,792		34,449
Income tax expense		7,030		945		7,975		6,724			823		7,547
Net income		24,253		3,411		27,664		23,933			2,969		26,902
Less net income attributed to NCI		—		—		—		108			—		108
Net income available to stockholders	$	24,253	$	3,411	$	27,664	$	23,825		$	2,969	$	26,794
Segment assets	$	7,696,386	$	36,166	$	7,732,552	$	7,550,846		$	32,259	$	7,583,105

	Six months ended June 30, 2023						Six months ended June 30, 2022
(in thousands)	Commercial Banking		WM&T		Total		Commercial Banking		WM&T		Total
Net interest income	$	123,740	$	261	$	124,001	$	105,541	$	203	$	105,744
Provision for credit losses		4,975		—		4,975		2,079		—		2,079
Wealth management and trust services		—		19,673		19,673		—		17,738		17,738
All other non-interest income		25,234		—		25,234		23,405		—		23,405
Non-interest expenses		79,477		11,637		91,114		90,566		10,406		100,972
Income before income tax expense		64,522		8,297		72,819		36,301		7,535		43,836
Income tax expense		14,307		1,800		16,107		7,357		1,635		8,992
Net income		50,215		6,497		56,712		28,944		5,900		34,844
Less net income attributed to NCI		—		—		—		144		—		144
Net income available to stockholders	$	50,215	$	6,497	$	56,712	$	28,800	$	5,900	$	34,700
Segment assets	$	7,696,386	$	36,166	$	7,732,552	$	7,550,846	$	32,259	$	7,583,105