Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s operating segments include banking, mortgage banking and small business specialty lending division. The reportable segments are determined by the products and services offered, and internal reporting. The Bank segment derives its revenues from the delivery of full-service financial services, including retail and commercial banking services and deposit accounts. The Mortgage Banking segment derives its revenues from the origination and sales of residential mortgage loans held for sale. The Small Business Specialty Lending Division segment derives its revenue from the origination, sales and servicing of Small Business Administration loans and other government guaranteed loans. Segment performance is evaluated using net interest income and noninterest income. Income taxes are allocated based on income before income taxes, and indirect expenses (includes management fees) are allocated based on various internal factors for each segment. Transactions among segments are made at fair value. Information reported internally for performance assessment follows. The following tables present information reported internally for performance assessment for the three and nine months ended September 30, 2020 and 2019:

(dollars in thousands)	Bank		Mortgage Banking		Small Business Specialty Lending Division		Totals
Three months ended September 30, 2020
Net Interest Income	$	12,920	$	188	$	740	$	13,848
Provision for Loan Losses	1,106		—		—		1,106
Noninterest Income	4,139		2,612		803		7,554
Noninterest Expenses	13,242		2,410		661		16,313
Income Taxes	785		82		17		884
Segment Profit (Loss)	$	1,926	$	308	$	865	$	3,099
Segments Assets at September 30, 2020	$	1,563,131	$	50,265	$	146,050	$	1,759,446

(dollars in thousands)	Bank		Mortgage Banking		Small Business Specialty Lending Division		Totals
Three months ended September 30, 2019
Net Interest Income	$	12,575	$	81	$	—	$	12,656
Provision for Loan Losses	214		—		—		214
Noninterest Income	2,785		1,245		—		4,030
Noninterest Expenses	11,637		1,191		529		13,357
Income Taxes	501		(15)		111		597
Segment Profit	$	3,008	$	150	$	(640)	$	2,518
Segments Assets at September 30, 2019	$	1,473,535	$	3,998	$	149	$	1,477,682

(dollars in thousands)	Bank		Mortgage Banking		Small Business Specialty Lending Division		Totals
Nine months ended September 30, 2020
Net Interest Income	$	38,306	$	305	$	1,483	$	40,094
Provision for Loan Losses	5,262		—		—		5,262
Noninterest Income	9,960		5,686		1,183		16,829
Noninterest Expenses	36,712		5,302		924		42,938
Income Taxes	1,472		137		198		1,807
Segment Profit (Loss)	$	4,820	$	552	$	1,544	$	6,916

(dollars in thousands)	Bank		Mortgage Banking		Small Business Specialty Lending Division		Totals
Nine months ended September 30, 2019
Net Interest Income	$	34,754	$	100	$	—	$	34,854
Provision for Loan Losses	524		—		—		524
Noninterest Income	8,462		1,888		—		10,350
Noninterest Expenses	32,832		2,037		529		35,398
Income Taxes	1,726		(10)		111		1,827
Segment Profit	$	8,134	$	(39)	$	(640)	$	7,455