NOTE 9 - BUSINESS SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2026

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

NOTE 9 – BUSINESS SEGMENT INFORMATION

Selected financial and descriptive information is required to be disclosed for reportable operating segments, applying a “management perspective” as the basis for identifying reportable segments. The management perspective is determined by the view that management takes of the segments within the Company when making operating decisions, allocating resources, and measuring performance. The segments of the Company have been defined by the structure of the Company’s internal organization, focusing on the financial information that the Company’s operating decision-makers routinely use to make decisions about operating matters.  The chief operating decision maker consists of the Chief Executive Officer and President of the Company.  The chief operating decision maker reviews financial reports that detail the interest income, interest expense, provision for credit losses, noninterest income, salaries and benefits expense, occupancy expense, other noninterest expenses, income tax expense and net income from continuing operations and compares the actual results to the amounts budgeted and the reason for variances.  The results of this review allow the Company’s chief operating decision maker to make operating decisions and allocate resources.  Capital markets revenue is considered a significant source of noninterest income.  Salaries and benefits expense and occupancy expense are considered  significant noninterest expenses.

The Company’s Commercial Banking business is geographically divided by markets into the operating segments which are the four subsidiary banks wholly owned by the Company:  QCBT, CRBT, CSB, and GB. Each of these operating segments offers similar products and services, but is managed separately due to different pricing, product demand, and consumer markets. Each offers commercial, consumer, and mortgage loans and deposit services.

The Company's All Other segment includes the corporate operations of the parent and operations of all other consolidated subsidiaries and/or defined operating segments that fall below the segment reporting thresholds.

Selected financial information on the Company's business segments is presented as follows as of and for the three and nine  months ended September 30, 2026 and 2025:

	Commercial Banking										Intercompany		Consolidated
	QCBT		CRBT		CSB		GB		All Other		Eliminations		Total
	(dollars in thousands)
Three Months Ended September 30, 2026
Interest and dividend income	$	35,584	$	35,871	$	22,711	$	30,094	$	55	$	(2,742)	$	121,573
Interest expense		16,485		12,576		8,470		13,807		4,658		(3,115)		52,881
Net interest income		19,099		23,295		14,241		16,287		(4,603)		373		68,692
Provision for credit losses		1,633		527		819		1,473		—		—		4,452
Noninterest income
Capital markets revenue		217		13,953		248		2,483		—		—		16,901
Other segment revenue items		5,977		4,333		1,452		1,938		45,388		(45,507)		13,581
Total noninterest income		6,194		18,286		1,700		4,421		45,388		(45,507)		30,482
Noninterest expense
Salaries and benefits expense		8,168		10,410		5,427		7,082		1,716		—		32,803
Occupancy expense		1,798		1,887		1,973		1,781		726		—		8,165
Other segment expense items		3,642		4,272		2,070		3,194		1,107		(527)		13,758
Total noninterest expense		13,608		16,569		9,470		12,057		3,549		(527)		54,726
Income tax expense		498		2,815		(11)		(89)		349		—		3,562
Net income (loss) from continuing operations	$	9,554	$	21,670	$	5,663	$	7,267	$	36,887	$	(44,607)	$	36,434
Goodwill	$	2,791	$	14,980	$	9,888	$	110,936	$	—	$	—	$	138,595
Intangibles		—		217		—		6,345		—		—		6,562
Total assets		2,709,310		2,979,899		1,780,615		2,414,400		1,513,605		(1,602,509)		9,795,320
Three Months Ended September 30, 2025
Interest and dividend income	$	38,591	$	34,488	$	21,798	$	31,779	$	60	$	(1,701)	$	125,015
Interest expense		19,013		13,687		8,742		16,396		4,550		(2,172)		60,216
Net interest income		19,578		20,801		13,056		15,383		(4,490)		471		64,799
Provision for credit losses		2,015		499		1		1,790		—		—		4,305
Noninterest income
Capital markets revenue		795		16,852		599		5,586		—		—		23,832
Other segment revenue items		5,711		3,909		1,493		2,053		45,278		(45,625)		12,819
Total noninterest income		6,506		20,761		2,092		7,639		45,278		(45,625)		36,651
Noninterest expense
Salaries and benefits expense		8,220		9,705		5,409		7,968		3,036		—		34,338
Occupancy expense		1,660		1,918		1,380		1,834		571		—		7,363
Other segment expense items		4,761		3,904		2,438		3,037		1,390		(644)		14,886
Total noninterest expense		14,641		15,527		9,227		12,839		4,997		(644)		56,587
Income tax expense		1,057		3,577		160		536		(1,486)		—		3,844
Net income (loss) from continuing operations	$	8,371	$	21,959	$	5,760	$	7,857	$	37,277	$	(44,510)	$	36,714
Goodwill	$	2,791	$	14,980	$	9,888	$	110,936	$	—	$	—	$	138,595
Intangibles		—		447		468		8,162		—		—		9,077
Total assets		2,794,136		2,760,379		1,680,476		2,446,635		1,424,193		(1,537,517)		9,568,302

	Commercial Banking										Intercompany		Consolidated
	QCBT		CRBT		CSB		GB		All other		Eliminations		Total
	(dollars in thousands)
Nine Months Ended September 30, 2026
Interest and dividend income	$	109,504	$	105,491	$	66,689	$	90,437	$	198	$	(9,628)	$	362,691
Interest expense		51,313		37,561		24,950		41,722		13,904		(10,805)		158,645
Net interest income		58,191		67,930		41,739		48,715		(13,706)		1,177		204,046
Provision for credit losses		2,509		1,044		1,527		6,534		—		—		11,614
Noninterest income
Capital markets revenue		318		36,650		248		5,778		—		—		42,994
Other segment revenue items		18,163		11,852		4,521		5,989		131,344		(132,002)		39,867
Total noninterest income		18,481		48,502		4,769		11,767		131,344		(132,002)		82,861
Noninterest expense
Salaries and benefits expense		24,485		29,553		16,198		21,814		4,262		—		96,312
Occupancy expense		4,916		5,715		5,059		5,226		2,070		—		22,986
Other segment expense items		11,428		11,676		6,449		9,212		3,573		(1,628)		40,710
Total noninterest expense		40,829		46,944		27,706		36,252		9,905		(1,628)		160,008
Income tax expense		2,320		7,687		1		(1,008)		217		—		9,217
Net income (loss) from continuing operations	$	31,014	$	60,757	$	17,274	$	18,704	$	107,516	$	(129,197)	$	106,068
Goodwill	$	2,791	$	14,980	$	9,888	$	110,936	$	—	$	—	$	138,595
Intangibles		—		217		—		6,345		—		—		6,562
Total assets		2,709,310		2,979,899		1,780,615		2,414,400		1,513,605		(1,602,509)		9,795,320
Nine Months Ended September 30, 2025
Interest and dividend income	$	111,385	$	99,369	$	62,787	$	91,491	$	219	$	(3,316)	$	361,935
Interest expense		54,213		39,079		25,312		47,962		13,120		(4,618)		175,068
Net interest income		57,172		60,290		37,475		43,529		(12,901)		1,302		186,867
Provision for credit losses		5,509		1,775		1,515		3,783		—		—		12,582
Noninterest income
Capital markets revenue		811		31,008		661		7,737		—		—		40,217
Other segment revenue items		16,199		10,321		4,237		5,736		112,005		(113,057)		35,441
Total noninterest income		17,010		41,329		4,898		13,473		112,005		(113,057)		75,658
Noninterest expense
Salaries and benefits expense		23,078		26,518		15,059		21,946		3,575		—		90,176
Occupancy expense		4,802		5,284		3,835		5,226		1,508		—		20,655
Other segment expense items		12,859		11,062		6,926		9,271		3,698		(1,938)		41,878
Total noninterest expense		40,739		42,864		25,820		36,443		8,781		(1,938)		152,709
Income tax expense		2,779		5,984		(21)		(216)		(2,822)		—		5,704
Net income (loss) from continuing operations	$	25,155	$	50,996	$	15,059	$	16,992	$	93,145	$	(109,817)	$	91,530
Goodwill	$	2,791	$	14,980	$	9,888	$	110,936	$	—	$	—	$	138,595
Intangibles		—		447		468		8,162		—		—		9,077
Total assets		2,794,136		2,760,379		1,680,476		2,446,635		1,424,193		(1,537,517)		9,568,302

Intercompany eliminations included in the selected financial information on the Company’s business segments consist of equity in net income of each subsidiary bank and investment in each subsidiary bank as follows:

	Commercial Banking
	QCBT		CRBT		CSB		GB		Total
	(dollars in thousands)
Three Months Ended September 30, 2026
Other segment revenue items:
Equity in net income of subsidiary bank	$	9,554	$	21,670	$	5,663	$	7,267	$	44,154
Total assets:
Investment in subsidiary bank		303,959		483,615		203,081		389,465		1,380,120
Three Months Ended September 30, 2025
Other segment revenue items:
Equity in net income of subsidiary bank	$	8,371	$	21,959	$	5,760	$	7,857	$	43,947
Total assets:
Investment in subsidiary bank		298,385		453,386		190,208		389,587		1,331,566
Nine Months Ended September 30, 2026
Other segment revenue items:
Equity in net income of subsidiary bank	$	31,014	$	60,757	$	17,273	$	18,704	$	127,748
Total assets:
Investment in subsidiary bank		303,959		483,615		203,081		389,465		1,380,120
Nine Months Ended September 30, 2025
Other segment revenue items:
Equity in net income of subsidiary bank	$	25,155	$	50,996	$	15,059	$	16,992	$	108,202
Total assets:
Investment in subsidiary bank		298,385		453,386		190,208		389,587		1,331,566