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 September 30, 2019
	Core Banking		WMG		Holding Company, CFS, and CRM			Consolidated Totals
Interest and dividend income	$	16,787	$	—	$	21		$	16,808
Interest expense	1,666		—		—			1,666
Net interest income	15,121		—		21			15,142
Provision for loan losses	4,441		—		—			4,441
Net interest income after provision for loan losses	10,680		—		21			10,701
Other non-interest income	2,564		2,315		77			4,956
Other non-interest expenses	11,704		1,559		262			13,525
Income (loss) before income tax expense (benefit)	1,540		756		(164		)	2,132
Income tax expense (benefit)	17		193		(34		)	176
Segment net income (loss)	$	1,523	$	563	$	(130	)	$	1,956



	Three months ended September 30, 2018
	Core Banking		WMG		Holding Company, CFS, and CRM			Consolidated Totals
Interest and dividend income	$	16,122	$	—	$	14		$	16,136
Interest expense	1,057		—		—			1,057
Net interest income	15,065		—		14			15,079
Provision for loan losses	300		—		—			300
Net interest income after provision for loan losses	14,765		—		14			14,779
Other non-interest income	4,987		2,406		(12		)	7,381
Other non-interest expenses	11,871		1,307		250			13,428
Income (loss) before income tax expense (benefit)	7,881		1,099		(248		)	8,732
Income tax expense (benefit)	1,555		281		(34		)	1,802
Segment net income (loss)	$	6,326	$	818	$	(214	)	$	6,930



	Nine months ended September 30, 2019
	Core Banking		WMG		Holding Company, CFS, and CRM			Consolidated Totals
Interest and dividend income	$	50,108	$	—	$	47		$	50,155
Interest expense	4,745		—		—			4,745
Net interest income	45,363		—		47			45,410
Provision for loan losses	5,684		—		—			5,684
Net interest income after provision for loan losses	39,679		—		47			39,726
Other non-interest income	7,544		7,115		308			14,967
Other non-interest expenses	35,253		4,705		887			40,845
Income (loss) before income tax expense (benefit)	11,970		2,410		(532		)	13,848
Income tax expense (benefit)	1,934		615		(106		)	2,443
Segment net income (loss)	$	10,036	$	1,795	$	(426	)	$	11,405

Segment assets	$	1,784,692	$	3,410	$	5,541		$	1,793,643



	Nine months ended September 30, 2018
	Core Banking		WMG		Holding Company, CFS, and CRM			Consolidated Totals
Interest and dividend income	$	47,645	$	—	$	29		$	47,674
Interest expense	2,678		—		—			2,678
Net interest income	44,967		—		29			44,996
Provision for loan losses	3,371		—		—			3,371
Net interest income after provision for loan losses	41,596		—		29			41,625
Other non-interest income	10,992		7,095		94			18,181
Legal accruals and settlements	989		—		—			989
Other non-interest expenses	36,300		4,414		858			41,572
Income (loss) before income tax expense (benefit)	15,299		2,681		(735		)	17,245
Income tax expense (benefit)	2,791		684		(126		)	3,349
Segment net income (loss)	$	12,508	$	1,997	$	(609	)	$	13,896

Segment assets	$	1,740,311	$	3,800	$	9,753		$	1,753,864