(

) 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.

Three Months Ended September 30, 2019	Bank		Mortgage Banking			Small Business Specialty Lending Division			Holding Company			Totals

Net Interest Income	$	13,018	$	81		$	-		$	(451	)	$	12,648
Provision for Loan Losses		214		-			-			-			214
Noninterest Income		2,737		1,245			-			57			4,039
Noninterest Expenses		11,252		1,191			529			386			13,358
Income Taxes		893		(15	)		(111	)		(170	)		597
Segment Profit (Loss)	$	3,396	$	150		$	(418	)	$	(610	)	$	2,518

Segment Assets at September 30, 2019	$	1,461,210	$	10,209		$	149		$	6,114		$	1,477,682

Three Months Ended September 30, 2018	Bank		Mortgage Banking		Small Business Specialty Lending Division		Holding Company			Totals

Net Interest Income	$	10,359	$	-	$	-	$	(254	)	$	10,105
Provision for Loan Losses		61		-		-		-			61
Noninterest Income		2,397		-		-		8			2,405
Noninterest Expenses		8,766		-		-		312			9,078
Income Taxes		792		-		-		(116	)		676
Segment Profit (Loss)	$	3,137	$	-	$	-	$	(442	)	$	2,695

Segment Assets at September 30, 2018	$	1,184,284	$	-	$	-	$	1,912		$	1,186,196

Nine Months Ended September 30, 2019	Bank		Mortgage Banking			Small Business Specialty Lending Division			Holding Company			Totals

Net Interest Income	$	35,850	$	100		$	-		$	(1,120	)	$	34,830
Provision for Loan Losses		524		-			-			-			524
Noninterest Income		8,412		1,888			-			73			10,373
Noninterest Expenses		31,461		2,037			561			1,338			35,397
Income Taxes		2,448		(10	)		(118	)		(493	)		1,827
Segment Profit (Loss)	$	9,829	$	(39	)	$	(443	)	$	(1,892	)	$	7,455

Segment Assets at September 30, 2019	$	1,461,210	$	10,209		$	149		$	6,114		$	1,477,682

Nine Months Ended September 30, 2018	Bank		Mortgage Banking		Small Business Specialty Lending Division		Holding Company			Totals

Net Interest Income	$	31,112	$	-	$	-	$	(713	)	$	30,399
Provision for Loan Losses		131		-		-		-			131
Noninterest Income		7,142		-		-		21			7,163
Noninterest Expenses		25,416		-		-		799			26,215
Income Taxes		2,574		-		-		(310	)		2,264
Segment Profit (Loss)	$	10,133	$	-	$	-	$	(1,181	)	$	8,952

Segment Assets at September 30, 2018	$	1,184,284	$	-	$	-	$	1,912		$	1,186,196