SEGMENT REPORTING

6 Months Ended

Jun. 30, 2020

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 2019 Annual Report on Form 10-K, which was filed with the SEC on March 12, 2020. 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 June 30, 2020
	Core Banking		WMG		Holding Company, CFS, and CRM		Consolidated Totals
Interest and dividend income	$	16,459	$	—	$	13	$	16,472
Interest expense	881		—		—		881
Net interest income	15,578		—		13		15,591
Provision for loan losses	260		—		—		260
Net interest income after provision for loan losses	15,318		—		13		15,331
Other non-interest income	2,612		2,323		145		5,080

Other non-interest expenses	11,279		1,647		301		13,227
Income (loss) before income tax expense (benefit)	6,651		676		(143)		7,184
Income tax expense (benefit)	1,223		173		(39)		1,357
Segment net income (loss)	$	5,428	$	503	$	(104)	$	5,827


	Three months ended June 30, 2019
	Core Banking		WMG		Holding Company, CFS, and CRM		Consolidated Totals
Interest and dividend income	$	16,669	$	—	$	13	$	16,682
Interest expense	1,581		—		—		1,581
Net interest income	15,088		—		13		15,101
Provision for loan losses	150		—		—		150
Net interest income after provision for loan losses	14,938		—		13		14,951
Other non-interest income	2,515		2,524		47		5,086

Other non-interest expenses	11,924		1,571		328		13,823
Income (loss) before income tax expense (benefit)	5,529		953		(268)		6,214
Income tax expense (benefit)	1,028		243		(38)		1,233
Segment net income (loss)	$	4,501	$	710	$	(230)	$	4,981


	Six months ended June 30, 2020
	Core Banking		WMG		Holding Company, CFS, and CRM		Consolidated Totals
Interest and dividend income	$	32,826	$	—	$	30	$	32,856
Interest expense	2,203		—		—		2,203
Net interest income	30,623		—		30		30,653
Provision for loan losses	3,310		—		—		3,310
Net interest income after provision for loan losses	27,313		—		30		27,343
Other non-interest income	4,976		4,552		282		9,810

Other non-interest expenses	23,161		3,249		566		26,976
Income (loss) before income tax expense (benefit)	9,128		1,303		(254)		10,177
Income tax expense (benefit)	1,613		334		(88)		1,859
Segment net income (loss)	$	7,515	$	969	$	(166)	$	8,318

Segment assets	$	2,040,937	$	3,063	$	6,921	$	2,050,921


	Six months ended June 30, 2019
	Core Banking		WMG		Holding Company, CFS, and CRM		Consolidated Totals
Interest and dividend income	$	33,321	$	—	$	26	$	33,347
Interest expense	3,079		—		—		3,079
Net interest income	30,242		—		26		30,268
Provision for loan losses	1,243		—		—		1,243
Net interest income after provision for loan losses	28,999		—		26		29,025
Other non-interest income	4,980		4,800		231		10,011
Legal accruals and settlements	—		—		—		—
Other non-interest expenses	23,549		3,146		625		27,320
Income (loss) before income tax expense (benefit)	10,430		1,654		(368)		11,716
Income tax expense (benefit)	1,917		422		(72)		2,267
Segment net income (loss)	$	8,513	$	1,232	$	(296)	$	9,449

Segment assets	$	1,742,927	$	3,574	$	6,496	$	1,752,997