NOTE 9 – Reportable Segments

The Company’s reportable segments represent the distinct product lines the Company offers and are viewed separately for strategic planning purposes by management. The three segments include Commercial and Retail Banking, Mortgage Banking, and Corporate. The following schedule presents financial information for each reportable segment.


	Three months ended								Three months ended
	September 30, 2018								September 30, 2017
	Commercial								Commercial
	and Retail		Mortgage						and Retail		Mortgage
(dollars in thousands)	Banking		Banking	Corporate		Eliminations		Consolidated	Banking		Banking	Corporate		Eliminations		Consolidated
Interest income	$	19,775	90	2		(2	)	19,865	$	15,868	87	2		(2	)	15,955
Interest expense		4,212	-	154		(2	)	4,364		2,529	-	119		(2	)	2,646
Net interest income (loss)		15,563	90	(152	)	-		15,501		13,339	87	(117	)	-		13,309
Provision for loan losses		400	-	-		-		400		500	-	-		-		500
Noninterest income		1,179	1,354	-		-		2,533		1,139	1,403	-		-		2,542
Noninterest expense		9,046	1,082	60		-		10,188		7,776	970	60		-		8,806
Net income (loss) before taxes		7,296	362	(212	)	-		7,446		6,202	520	(177	)	-		6,545
Income tax provision (benefit)		1,632	76	(44	)	-		1,664		2,165	192	(62	)	-		2,295
Net income (loss)	$	5,664	286	(168	)	-		5,782	$	4,037	328	(115	)	-		4,250
Total assets	$	1,847,633	9,649	180,420		(179,995	)	1,857,707	$	1,548,771	8,476	160,905		(160,468	)	1,557,684

	Nine months ended								Nine months ended
	September 30, 2018								September 30, 2017
	Commercial								Commercial
	and Retail		Mortgage						and Retail		Mortgage
(dollars in thousands)	Banking		Banking	Corporate		Eliminations		Consolidated	Banking		Banking	Corporate		Eliminations		Consolidated
Interest income	$	55,290	288	6		(6	)	55,578		44,612	233	9		(9	)	44,845
Interest expense		10,993	-	436		(6	)	11,423		7,193	-	393		(9	)	7,577
Net interest income (loss)		44,297	288	(430	)	-		44,155		37,419	233	(384	)	-		37,268
Provision for loan losses		1,300	-	-		-		1,300		1,500	-	-		-		1,500
Noninterest income		3,414	4,311	-		-		7,725		3,093	4,063	-		-		7,156
Noninterest expense		25,982	3,210	180		-		29,372		22,890	2,853	186		-		25,929
Net income before taxes		20,429	1,389	(610	)	-		21,208		16,122	1,443	(570	)	-		16,995
Income tax provision (benefit)		4,538	292	(128	)	-		4,702		5,695	534	(199	)	-		6,030
Net income (loss)	$	15,891	1,097	(482	)	-		16,506	$	10,427	909	(371	)	-		10,965
Total assets	$	1,847,633	9,649	180,420		(179,995	)	1,857,707	$	1,548,771	8,476	160,905		(160,468	)	1,557,684

Commercial and retail banking. The Company’s primary business is to provide traditional deposit and lending products and services to its commercial and retail banking clients.
Mortgage banking. The mortgage banking segment provides mortgage loan origination services for loans that will be sold in the secondary market to investors.
Corporate. Corporate is comprised primarily of compensation and benefits for certain members of management and interest on parent company debt.