NOTE 7 - BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

BUSINESS SEGMENT INFORMATION

NOTE 7 – 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 Company's primary segment, Commercial Banking, is geographically divided by markets into the secondary segments comprised of the four held for investment subsidiary banks wholly owned by the Company: QCBT, CRBT, CSB, and SFC Bank. Each of these secondary 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 Wealth Management segment represents the trust, asset management, investment management and advisory services offered at the Company's subsidiary banks and the Bates Companies in aggregate. This segment generates income primarily from fees charged based on assets under administration for corporate and personal trusts, custodial services, and investments managed. No assets of the subsidiary banks have been allocated to the Wealth Management segment.

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.  The financial results for RB&T prior to the sale of the majority of its assets and liabilities at November 30, 2019 are also included in the Company’s All Other Segment as are the assets held for sale at June 30, 2020.

Selected financial information on the Company's business segments is presented as follows as of and for the three and six months ended June 30, 2020 and 2019.

	Commercial Banking								Wealth				Intercompany		Consolidated
	QCBT		CRBT		CSB		SFC Bank		Management		All other		Eliminations		Total
	(dollars in thousands)
Three Months Ended June 30, 2020
Total revenue	$	19,727	$	34,612	$	9,752	$	9,533	$	3,627	$	17,813	$	(17,788)	$	77,276
Net interest income		15,653		12,820		7,538		6,201		—		(1,509)		245		40,948
Provision for loan/lease losses		7,539		7,160		2,811		2,405		—		—		—		19,915
Net income (loss) from continuing operations		3,307		10,580		591		1,899		986		13,797		(17,421)		13,739
Goodwill		3,223		14,980		9,888		45,975		—		182		—		74,248
Intangibles		—		2,437		3,643		6,344		—		1,448		—		13,872
Total assets		1,984,245		2,021,043		903,648		745,470		—		715,740		(765,385)		5,604,761
Three Months Ended June 30, 2019
Total revenue	$	20,374	$	23,575	$	9,730	$	7,757	$	4,249	$	23,431	$	(17,870)	$	71,246
Net interest income		12,632		10,785		7,294		5,425		—		1,877		—		38,013
Provision for loan/lease losses		973		300		151		485		—		32		—		1,941
Net income (loss) from continuing operations		4,505		6,928		2,207		2,079		583		14,369		(17,167)		13,504
Goodwill		3,223		14,980		9,888		45,975		—		3,682		—		77,748
Intangibles		—		2,935		4,328		7,268		—		1,558		—		16,089
Total assets		1,637,115		1,527,521		806,704		671,644		—		1,164,901		(613,033)		5,194,852
Six Months Ended June 30, 2020
Total revenue	$	39,227	$	56,607	$	19,802	$	18,224	$	7,665	$	33,431	$	(33,502)	$	141,454
Net interest income		30,080		24,206		15,038		11,843		—		(2,998)		477		78,646
Provision for loan/lease losses		10,722		9,410		4,775		3,375		—		—		—		28,282
Net income (loss)		8,210		16,957		1,629		4,105		1,806		24,934		(32,674)		24,967
Goodwill		3,223		14,980		9,888		45,975		—		182		—		74,248
Intangibles		—		2,437		3,643		6,344		—		1,448		—		13,872
Total assets		1,984,245		2,021,043		903,648		745,470		—		715,740		(765,385)		5,604,761
Six Months Ended June 30, 2019
Total revenue	$	38,918	$	42,819	$	19,000	$	15,045	$	8,478	$	43,609	$	(32,528)	$	135,341
Net interest income		24,771		21,193		14,260		10,651		—		4,046		—		74,921
Provision for loan/lease losses		1,993		725		301		985		—		71		—		4,075
Net income (loss) from continuing operations		8,690		12,028		4,363		3,732		1,741		27,485		(31,617)		26,422
Goodwill		3,223		14,980		9,888		45,975		—		3,682		—		77,748
Intangibles		—		2,935		4,328		7,268		—		1,558		—		16,089
Total assets		1,637,115		1,527,521		806,704		671,644		—		1,164,901		(613,033)		5,194,852