Note 7 - Business Segment Information

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 7 – BUSINESS SEGMENT INFORMATION

Selected financial and descriptive information is required to be disclosed for reportable operating segments, applying a “management perspective” as the basis for identifying reportable segments. The management perspective is determined by the view that management takes of the segments within the Company when making operating decisions, allocating resources, and measuring performance. The segments of the Company have been defined by the structure of the Company’s internal organization, focusing on the financial information that the Company’s operating decision-makers routinely use to make decisions about operating matters.

The Company’s primary segment, Commercial Banking, is geographically divided by markets into the secondary segments comprised of the three subsidiary banks wholly owned by the Company: QCBT, CRBT, and RB&T. Each of these secondary segments offers similar products and services, but is managed separately due to different pricing, product demand, and consumer markets. Each offers commercial, consumer, and mortgage loans and deposit services.

The Company’s Wealth Management segment represents the trust and asset management and investment management and advisory services offered at the Company’s three subsidiary banks in aggregate. This segment generates income primarily from fees charged based on assets under administration for corporate and personal trusts, custodial services, and investments managed. No assets of the subsidiary banks have been allocated to the Wealth Management segment.

The Company’s All Other segment includes the operations of all other consolidated subsidiaries and/or defined operating segments that fall below the segment reporting thresholds. This segment includes the corporate operations of the parent company.

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Selected financial information on the Company’s business segments is presented as follows as of and for the three and six months ended June 30, 2016 and 2015.

	Commercial Banking							Wealth					Intercompany			Consolidated
	QCBT		CRBT			RB&T		Management		All Other			Eliminations			Total
Three Months Ended June 30, 2016
Total revenue	$	14,162,914	$	10,438,092		$	3,918,629	$	2,204,821	$	8,244,495		$	(8,293,266	)	$	30,675,685
Net interest income	$	11,207,759	$	7,135,725		$	2,945,417	$	-	$	(280,088	)	$	-		$	21,008,813
Net income	$	3,898,343	$	3,144,986		$	772,169	$	386,202	$	6,676,467		$	(8,201,700	)	$	6,676,467
Total assets	$	1,390,025,232	$	904,367,275		$	402,157,473	$	-	$	328,099,700		$	(341,215,392	)	$	2,683,434,288
Provision	$	747,850	$	150,000		$	300,000	$	-	$	-		$	-		$	1,197,850
Goodwill	$	3,222,688	$	-		$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,371,653		$	-	$	-	$	-		$	-		$	1,371,653
Three Months Ended June 30, 2015
Total revenue	$	12,930,582	$	8,777,259		$	3,627,740	$	2,269,609	$	718,325		$	(811,669	)	$	27,511,846
Net interest income	$	9,741,899	$	6,522,511		$	2,684,330	$	-	$	(457,904	)	$	-		$	18,490,836
Net income (loss)	$	229,577	$	(316,567	)	$	529,567	$	438,530	$	(523,818	)	$	(881,107	)	$	(523,818	)
Total assets	$	1,299,556,911	$	860,403,296		$	363,049,771	$	-	$	268,874,722		$	(248,915,854	)	$	2,542,968,846
Provision	$	1,673,665	$	500,000		$	175,000	$	-	$	-		$	-		$	2,348,665
Goodwill	$	3,222,688	$	-		$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,571,165		$	-	$	-	$	-		$	-		$	1,571,165
Six Months Ended June 30, 2016
Total revenue	$	27,679,846	$	21,277,313		$	7,712,876	$	4,439,113	$	15,104,270		$	(15,213,201	)	$	61,000,217
Net interest income	$	22,169,206	$	14,160,713		$	5,857,391	$	-	$	(580,975	)	$	-		$	41,606,335
Net income	$	6,730,039	$	6,079,717		$	1,389,954	$	833,972	$	13,049,955		$	(15,033,681	)	$	13,049,956
Total assets	$	1,390,025,232	$	904,367,275		$	402,157,473	$	-	$	328,099,700		$	(341,215,392	)	$	2,683,434,288
Provision	$	1,970,835	$	700,000		$	600,000	$	-	$	-		$	-		$	3,270,835
Goodwill	$	3,222,688	$	-		$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,371,653		$	-	$	-	$	-		$	-		$	1,371,653
Six Months Ended June 30, 2015
Total revenue	$	25,732,000	$	18,302,906		$	7,169,330	$	4,613,047	$	6,334,768		$	(6,516,697	)	$	55,635,354
Net interest income	$	19,016,937	$	12,880,808		$	5,318,412	$	-	$	(943,104	)	$	-		$	36,273,053
Net income	$	2,792,190	$	1,751,739		$	1,048,224	$	897,860	$	3,654,071		$	(6,490,013	)	$	3,654,071
Total assets	$	1,299,556,911	$	860,403,296		$	363,049,771	$	-	$	268,874,722		$	(248,915,854	)	$	2,542,968,846
Provision	$	2,556,121	$	1,100,000		$	403,000	$	-	$	-		$	-		$	4,059,121
Goodwill	$	3,222,688	$	-		$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,571,165		$	-	$	-	$	-		$	-		$	1,571,165