Note 9 - BUSINESS SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2025

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/Chief Financial Officer 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 months ended March 31, 2025 and 2024:

	Commercial Banking										Intercompany		Consolidated
	QCBT		CRBT		CSB		GB		All other		Eliminations		Total
	(dollars in thousands)
Three Months Ended March 31, 2025
Interest and dividend income	$	35,937	$	31,932	$	20,008	$	29,343	$	87	$	(634)	$	116,673
Interest expense		17,313		12,466		8,102		15,562		4,286		(1,042)		56,687
Net interest income		18,624		19,466		11,906		13,781		(4,199)		408		59,986
Provision for credit losses		1,412		86		1,362		1,374		—		—		4,234
Noninterest income
Capital markets revenue		—		5,603		62		851		—		—		6,516
Other segment revenue items		5,211		2,395		1,502		1,674		31,716		(32,122)		10,376
Total noninterest income		5,211		7,998		1,564		2,525		31,716		(32,122)		16,892
Noninterest expense
Salaries and benefits expense		7,409		7,861		4,873		6,504		717		—		27,364
Occupancy expense		1,539		1,596		1,238		1,597		485		—		6,455
Other segment expense items		4,034		3,552		2,105		3,076		598		(645)		12,720
Total noninterest expense		12,982		13,009		8,216		11,177		1,800		(645)		46,539
Income tax expense		897		764		(246)		(416)		(691)		—		308
Net income (loss) from continuing operations	$	8,544	$	13,605	$	4,138	$	4,171	$	26,408	$	(31,069)	$	25,797
Goodwill	$	2,791	$	14,980	$	9,888	$	110,936	$	—	$	—	$	138,595
Intangibles		—		568		733		9,099		—		—		10,400
Total assets		2,777,634		2,617,143		1,583,646		2,331,944		1,355,245		(1,512,833)		9,152,779
Three Months Ended March 31, 2024
Interest and dividend income	$	35,730	$	29,769	$	19,246	$	30,543	$	64	$	(303)	$	115,049
Interest expense		18,767		12,861		8,171		17,029		4,173		(651)		60,350
Net interest income		16,963		16,908		11,075		13,514		(4,109)		348		54,699
Provision for credit losses		3,225		(234)		186		(208)		—		—		2,969
Noninterest income
Capital markets revenue		—		15,205		—		1,252		—		—		16,457
Other segment revenue items		4,652		3,001		1,264		1,830		33,605		(33,951)		10,401
Total noninterest income		4,652		18,206		1,264		3,082		33,605		(33,951)		26,858
Noninterest expense
Salaries and benefits expense		8,133		9,447		4,519		7,161		2,600		—		31,860
Occupancy expense		1,497		1,585		1,246		1,712		474		—		6,514
Other segment expense items		3,766		3,518		1,964		3,028		644		(604)		12,316
Total noninterest expense		13,396		14,550		7,729		11,901		3,718		(604)		50,690
Income tax expense		90		2,755		(25)		(103)		(1,545)		—		1,172
Net income (loss) from continuing operations	$	4,903	$	18,043	$	4,449	$	5,006	$	27,323	$	(32,998)	$	26,726
Goodwill	$	3,223	$	14,980	$	9,888	$	110,936	$	—	$	—	$	139,027
Intangibles		—		819		1,289		11,023		—		—		13,131
Total assets		2,618,727		2,423,936		1,445,230		2,327,985		1,235,181		(1,451,510)		8,599,549

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 March 31, 2025
Other segment revenue items:
Equity in net income of subsidiary bank	$	8,543	$	13,605	$	4,137	$	4,172	$	30,457
Total assets:
Investment in subsidiary bank		289,980		438,716		177,664		385,073		1,291,433
Three Months Ended March 31, 2024
Other segment revenue items:
Equity in net income of subsidiary bank	$	4,903	$	18,043	$	4,449	$	5,006	$	32,401
Total assets:
Investment in subsidiary bank		263,814		369,195		156,946		359,296		1,149,251