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 of the Corporation’s 2018 Annual Report on Form 10-K, which was filed with the SEC on March 13, 2019. 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).



	Three months ended March 31, 2019
	Core Banking		WMG		Holding Company, CFS, and CRM			Consolidated Totals
Interest and dividend income	$	16,652	$	—	$	13		$	16,665
Interest expense	1,498		—		—			1,498
Net interest income	15,154		—		13			15,167
Provision for loan losses	1,093		—		—			1,093
Net interest income after provision for loan losses	14,061		—		13			14,074
Other non-interest income	2,465		2,276		184			4,925
Other non-interest expenses	11,625		1,575		297			13,497
Income (loss) before income tax expense (benefit)	4,901		701		(100		)	5,502
Income tax expense (benefit)	889		179		(34		)	1,034
Segment net income (loss)	$	4,012	$	522	$	(66	)	$	4,468

Segment assets	$	1,758,795	$	3,697	$	7,080		$	1,769,572



	Three months ended March 31, 2018
	Core Banking		WMG		Holding Company, CFS, and CRM			Consolidated Totals
Interest and dividend income	$	15,662	$	—	$	7		$	15,669
Interest expense	769		—		—			769
Net interest income	14,893		—		7			14,900
Provision for loan losses	709		—		—			709
Net interest income after provision for loan losses	14,184		—		7			14,191
Other non-interest income	3,183		2,316		(24		)	5,475
Other non-interest expenses	12,415		1,478		273			14,166
Income (loss) before income tax expense (benefit)	4,952		838		(290		)	5,500
Income tax expense (benefit)	894		213		(46		)	1,061
Segment net income (loss)	$	4,058	$	625	$	(244	)	$	4,439

Segment assets	$	1,688,034	$	4,090	$	7,830		$	1,699,954