Note 25 - Segments

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(25) Segments

Bancorp’s principal activities include commercial banking and WM&T. Commercial banking provides a full range of loan and deposit products to individual consumers and businesses. Commercial banking also includes Bancorp’s mortgage banking and investment products sales activity. WM&T provides investment management, company retirement plan management, retirement planning, trust, estate and financial planning services in all markets in which Bancorp operates. The magnitude of WM&T revenue distinguishes Bancorp from other community banks of similar asset size.

Financial information for each business segment reflects that which is specifically identifiable or allocated based on an internal allocation method. Income taxes are allocated based on the effective federal income tax rate adjusted for any tax-exempt activity. All tax-exempt activity and provision have been allocated fully to the commercial banking segment. Measurement of performance of business segments is based on the management structure of Bancorp and is not necessarily comparable with similar information for any other financial institution. Information presented is also not necessarily indicative of the segments’ operations if they were independent entities.

Principally, all of the net assets of Bancorp are involved in the commercial banking segment. Goodwill of $12.5 million, of which $682,000 relates to a bank acquisition in 1996 and $11.8 million relates to the 2019 KSB acquisition, has been assigned to the commercial banking segment. Assets assigned to WM&T primarily consist of net premises and equipment and a receivable related to fees earned that have not been collected.

Selected financial information by business segment follows:

	Commercial
As of and for the Year ended December 31, 2020 (in thousands)	Banking		WM&T		Total
Net interest income	$	135,587	$	334	$	135,921
Provision for loan and leases		16,918		—		16,918
Wealth management and trust services		—		23,406		23,406
All other non-interest income		28,493		—		28,493
Non-interest expenses		90,320		12,839		103,159
Income before income tax expense		56,842		10,901		67,743
Income tax expense		6,508		2,366		8,874
Net income	$	50,334	$	8,535	$	58,869
Total assets	$	4,604,998	$	3,631	$	4,608,629

	Commercial
As of and for the Year ended December 31, 2019 (in thousands)	Banking		WM&T		Total
Net interest income	$	125,029	$	319	$	125,348
Provision for loan and leases		1,000		—		1,000
Wealth management and trust services		—		22,643		22,643
All other non-interest income		26,785		—		26,785
Non-interest expenses		85,407		12,709		98,116
Income before income tax expense		65,407		10,253		75,660
Income tax expense		7,368		2,225		9,593
Net income	$	58,039	$	8,028	$	66,067
Total assets	$	3,720,502	$	3,695	$	3,724,197

	Commercial
As of and for the Year ended December 31, 2018 (in thousands)	Banking		WM&T		Total
Net interest income	$	114,320	$	255	$	114,575
Provision for loan and leases		2,705		—		2,705
Wealth management and trust services		—		21,536		21,536
All other non-interest income		23,530		—		23,530
Non-interest expenses		76,842		12,546		89,388
Income before income tax expense		58,303		9,245		67,548
Income tax expense		10,025		2,006		12,031
Net income	$	48,278	$	7,239	$	55,517
Total assets	$	3,299,169	$	3,755	$	3,302,924