Segment Information

9 Months Ended

Sep. 30, 2020

Segment Information [Abstract]

Segment Information

Note 17: Segment Information

The Company's reportable segments are strategic business units that offer different products and services. The Company manages the segments separately because each business requires different management, personnel proficiencies, and marketing strategies.

The Company has two reportable segments that represent the primary businesses reported in the consolidated financial statements: the finance company (the parent company), and the investment advisor and insurance firm (MP Securities). The finance company segment uses funds from the sale of debt securities, income from operations, and the sale of loan participations to originate or purchase mortgage loans. The finance company also services loans. MP Securities generates fee income by selling debt securities and other investment and insurance products, as well as providing investment advisory and financial planning services.

The accounting policies applied to determine the segment information are the same as those described in the summary of significant accounting policies. Management accounts for intersegment revenues and expenses at amounts that assume the Company entered into the transaction with unrelated third parties at the current market prices at the time of the transaction. Management evaluates the performance of each segment based on net income or loss before provision for income taxes and LLC fees.

Financial information with respect to the reportable segments for the three and nine months ended September 30, 2020 is as follows (dollars in thousands):

Three months ended September 30, 2020
	Finance Company		Investment Advisor and Insurance Firm		Other Segments		Adjustments / Eliminations		Total
Total revenue	$	4,514	$	409	$	—	$	(227)	$	4,696
Total non-interest expense and provision for tax		1,185		289		1		—		1,475
Net profit		1,852		120		(1)		21		1,992

Nine months ended September 30, 2020
	Finance Company		Investment Advisor and Insurance Firm		Other Segments		Adjustments / Eliminations		Total
Total revenue	$	9,002	$	1,202	$	—	$	(726)	$	9,478
Total non-interest expense and provision for tax		2,923		895		1		—		3,819
Net profit (loss)		1,601		307		(1)		128		2,035
Total assets		139,724		2,933		371		(60)		142,968

Financial information with respect to the reportable segments for the three and nine months ended September 30, 2019 is as follows (dollars in thousands):

Three months ended September 30, 2019
	Finance Company		Investment Advisor and Insurance Firm		Other Segments		Adjustments / Eliminations		Total
Total revenue	$	2,465	$	620	$	—	$	(212)	$	2,873
Total non-interest expense and provision for tax		1,006		280		—		—		1,286
Net profit (loss)		12		340		—		47		399

Nine months ended September 30, 2019
	Finance Company		Investment Advisor and Insurance Firm		Other Segments		Adjustments / Eliminations		Total
Total revenue	$	7,971	$	1,947	$	—	$	(725)	$	9,193
Total non-interest expense and provision for tax		3,029		841		(2)		—		3,868
Net profit (loss)		824		1,106		2		(14)		1,918
Total assets		158,621		2,452		55		(30)		161,098