Note 13 - Segment Reporting

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

13. SEGMENT REPORTING

Under

ASC Topic

280,

Segment Reporting

, certain information is disclosed for the

two

reportable operating segments of Bancshares: the Bank and ALC. The reportable segments were determined using the internal management reporting system. These segments comprise Bancshares’ and the Bank’s significant subsidiaries. The accounting policies for each segment are the same as those described in Note

2,

“Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form

10

-K as of and for the year ended

December 31, 2017.

The segment results include certain overhead allocations and intercompany transactions that were recorded at current market prices. All intercompany transactions have been eliminated to determine the consolidated balances. The results for the

two

reportable segments of the Company are included in the tables below

.

					All
	Bank		ALC		Other			Eliminations			Consolidated
	(Dollars in Thousands)
As of and for the three months ended June 30 , 2018 :
Net interest income	$	4,244	$	3,254	$	4		$	—		$	7,502
Provision for loan losses		—		702		—			—			702
Total non-interest income		948		272		684			(772	)		1,132
Total non-interest expense		4,888		2,426		365			(187	)		7,492
Income before income taxes		304		398		323			(585	)		440
Provision for income taxes		60		82		(61	)		—			81
Net income	$	244	$	316	$	384		$	(585	)	$	359
Other significant items:
Total assets	$	636,623	$	103,624	$	81,132		$	(187,343	)	$	634,036
Total investment securities		165,660		—		80			—			165,740
Total loans, net		345,673		100,792		—			(90,936	)		355,529
Investment in subsidiaries		5		—		75,241			(75,241	)		5
Fixed asset additions		439		55		—			—			494
Depreciation and amortization expense		321		32		—			—			353
Total interest income from external customers		3,983		4,407		—			—			8,390
Total interest income from affiliates		1,154		—		4			(1,158	)		—
For the six months ended June 30, 2018:
Net interest income	$	8,361	$	6,447	$	8		$	—		$	14,816
Provision for loan losses		39		1,321		—			—			1,360
Total non-interest income		1,815		528		1,537			(1,608	)		2,272
Total non-interest expense		9,419		4,950		812			(388	)		14,793
Income before income taxes		718		704		733			(1,220	)		935
Provision for income taxes		130		152		(120	)		—			162
Net income	$	588	$	552	$	853		$	(1,220	)	$	773
Other significant items:
Fixed asset additions		658		57		—			—			715
Depreciation and amortization expense		639		65		—			—			704
Total interest income from external customers		7,820		8,689		—			—			16,509
Total interest income from affiliates		2,243		—		8			(2,251	)		—

					All
	Bank		ALC		Other			Eliminations			Consolidated
	(Dollars in Thousands)
As of and for the three months ended June 30, 2017:
Net interest income	$	4,066	$	2,988	$	3		$	—		$	7,057
Provision (reduction in reserve) for loan losses		—		576		—			—			576
Total non-interest income		806		237		647			(760	)		930
Total non-interest expense		4,422		2,286		310			(155	)		6,863
Income before income taxes		450		363		340			(605	)		548
Provision for income taxes		103		126		(97	)		—			132
Net income	$	347	$	237	$	437		$	(605	)	$	416
Other significant items:
Total assets	$	618,431	$	91,629	$	83,655		$	(177,497	)	$	616,218
Total investment securities		200,751		—		80			—			200,831
Total loans, net		321,797		88,049		—			(79,320	)		330,526
Investment in subsidiaries		5		—		78,036			(78,036	)		5
Fixed asset additions		3,735		28		—			—			3,763
Depreciation and amortization expense		218		42		—			—			260
Total interest income from external customers		3,506		4,177		—			—			7,683
Total interest income from affiliates		1,189		—		3			(1,192	)		—
For the six months ended June 30, 2017:
Net interest income	$	7,977	$	5,993	$	6		$	—		$	13,976
Provision (reduction in reserve) for loan losses		—		1,091		—			—			1,091
Total non-interest income		1,642		480		1,498			(1,523	)		2,097
Total non-interest expense		8,823		4,662		739			(324	)		13,900
Income before income taxes		796		720		765			(1,199	)		1,082
Provision for income taxes		201		256		(195	)		—			262
Net income	$	595	$	464	$	960		$	(1,199	)	$	820
Other significant items:
Fixed asset additions		7,760		90		—			—			7,850
Depreciation and amortization expense		419		83		—			—			502
Total interest income from external customers		6,897		8,296		—			—			15,193
Total interest income from affiliates		2,302		—		6			(2,308	)		—