SEGMENT REPORTING

The Corporation manages its operations through two primary business segments: core banking and WMG. The core banking segment provides revenues by attracting deposits from the general public and using such funds to originate consumer, commercial, commercial real estate, and residential mortgage loans, primarily in the Corporation’s local markets and to invest in securities. The WMG services segment provides revenues by providing trust and investment advisory services to clients.

Accounting policies for the segments are the same as those described in Note 1. Summarized financial information concerning the Corporation’s reportable segments and the reconciliation to the Corporation’s consolidated results are shown in the following table. Income taxes are allocated based on the separate taxable income of each entity and indirect overhead expenses are allocated based on reasonable and equitable allocations applicable to the reportable segment. The Holding Company, CFS, and CRM column below includes amounts to eliminate transactions between segments (in thousands). CRM was formed during the second quarter of 2016, therefore, is not included within the year ended December 31, 2015 results.



Year ended December 31, 2017	Core Banking		WMG		Holding Company, CFS and CRM			Consolidated Totals
Interest and dividend income	$	60,031	$	—	$	24		$	60,055
Interest expense	3,068		—		—			3,068
Net interest income	56,963		—		24			56,987
Provision for loan losses	9,022		—		—			9,022
Net interest income after provision for loan losses	47,941		—		24			47,965
Non-interest income	11,224		8,805		462			20,491
Non-interest expenses	46,931		5,664		1,169			53,764
Income (loss) before income tax expense	12,234		3,141		(683		)	14,692
Income tax expense (benefit)	6,283		1,191		(212		)	7,262
Segment net income (loss)	$	5,951	$	1,950	$	(471	)	$	7,430

Segment assets	$	1,700,196	$	4,061	$	3,363		$	1,707,620



Year ended December 31, 2016	Core Banking		WMG		Holding Company, CFS and CRM			Consolidated Totals
Interest and dividend income	$	56,159	$	—	$	9		$	56,168
Interest expense	3,839		—		—			3,839
Net interest income	52,320		—		$	9		52,329
Provision for loan losses	2,437		—		—			2,437
Net interest income after provision for loan losses	49,883		—		9			49,892
Non-interest income	12,318		8,316		515			21,149
Non-interest expenses	49,783		5,676		1,151			56,610
Income before income tax expense	12,418		2,640		(627		)	14,431
Income tax expense (benefit)	3,693		997		(286		)	4,404
Segment net income (loss)	$	8,725	$	1,643	$	(341	)	$	10,027

Segment assets	$	1,650,100	$	4,586	$	2,493		$	1,657,179



Year ended December 31, 2015	Core Banking		WMG		Holding Company and CFS			Consolidated Totals
Interest and dividend income	$	54,240	$	—	$	4		$	54,244
Interest expense	3,602		—		—			3,602
Net interest income	50,638		—		4			50,642
Provision for loan losses	1,571		—		—			1,571
Net interest income after provision for loan losses	49,067		—		4			49,071
Non-interest income	11,019		8,522		906			20,447
Non-interest expenses	48,882		5,517		1,028			55,427
Income (loss) before income tax expense	11,204		3,005		(118		)	14,091
Income tax expense (benefit)	3,620		1,149		(111		)	4,658
Segment net income (loss)	$	7,584	$	1,856	$	(7	)	$	9,433

Segment assets	$	1,614,481	$	4,282	$	1,201		$	1,619,964