Segment Information

3 Months Ended

Mar. 31, 2020

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 months periods ended March 31, 2020 and 2019:


(dollars in thousands)	Bank		Mortgage Banking		Small Business Specialty Lending Division		Totals
Three Months Ended March 31, 2020
Net Interest Income	$	12,656	$	34	$	14	$	12,704
Provision for Loan Losses	1,956		—		—		1,956
Noninterest Income	3,049		1,253		259		4,561
Noninterest Expenses	11,667		1,195		516		13,378
Income Taxes	368		11		(51)		328
Segment Profit (Loss)	$	1,714	$	81	$	(192)	$	1,603

Segments Assets at March 31, 2020	$	1,497,788	$	11,082	$	1,178	$	1,510,048


(dollars in thousands)	Bank		Mortgage Banking		Small Business Specialty Lending Division		Totals
Three Months Ended March 31, 2019
Net Interest Income	$	10,357	$	—	$	—	$	10,357
Provision for Loan Losses	131		—		—		131
Noninterest Income	2,334		—		—		2,334
Noninterest Expenses	9,026		—		—		9,026
Income Taxes	699		—		—		699
Segment Profit	$	2,835	$	—	$	—	$	2,835

Segments Assets at March 31, 2019	$	1,503,284	$	11,624	$	405	$	1,515,313