NOTE

– 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

four

subsidiary banks wholly owned by the Company: QCBT, CRBT, CSB 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

four

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.

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.

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, 2017

and

2016.

	Commercial Banking								Wealth					Intercompany			Consolidated
	QCBT		CRBT		CSB		RB&T		Management		All Other			Eliminations			Total
Three Months Ended June 30, 2017
Total revenue	$	14,210,040	$	10,149,769	$	8,171,307	$	4,241,431	$	2,560,836	$	10,181,814		$	(10,279,411	)	$	39,235,786
Net interest income	$	11,414,818	$	7,230,425	$	6,920,820	$	3,095,512	$	-	$	(614,878	)	$	-		$	28,046,697
Provision for loan/lease losses	$	552,993	$	300,000	$	861,000	$	309,000	$	-	$	-		$	-		$	2,022,993
Net income	$	4,073,777	$	2,870,582	$	1,920,040	$	834,842	$	454,465	$	8,766,014		$	(10,153,703	)	$	8,766,017
Goodwill	$	3,222,688	$	-	$	9,888,225	$	-	$	-	$	-		$	-		$	13,110,913
Core deposit intangible	$	-	$	1,172,141	$	5,747,339	$	-	$	-	$	-		$	-		$	6,919,480
Total assets	$	1,400,307,827	$	993,768,912	$	642,761,140	$	426,159,677	$	-	$	382,407,292		$	(388,218,153	)	$	3,457,186,695

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
Provision for loan/lease losses	$	747,850	$	150,000	$	-	$	300,000	$	-	$	-		$	-		$	1,197,850
Net income	$	3,898,343	$	3,144,986	$	-	$	772,169	$	386,202	$	6,676,467		$	(8,201,700	)	$	6,676,467
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,371,653	$	-	$	-	$	-	$	-		$	-		$	1,371,653
Total assets	$	1,390,025,232	$	904,367,275	$	-	$	402,157,473	$	-	$	328,099,700		$	(341,215,392	)	$	2,683,434,288

Six Months Ended June 30, 2017
Total revenue	$	27,745,981	$	20,536,314	$	16,303,013	$	8,189,230	$	5,262,642	$	20,057,957		$	(20,230,498	)	$	77,864,639
Net interest income	$	22,716,300	$	14,204,472	$	13,947,328	$	6,063,586	$	-	$	(1,216,106	)	$	-		$	55,715,580
Provision for loan/lease losses	$	1,484,102	$	550,000	$	1,635,000	$	459,000	$	-	$	-		$	-		$	4,128,102
Net income	$	7,728,783	$	5,763,142	$	3,815,174	$	1,679,411	$	1,015,527	$	17,950,982		$	(20,002,037	)	$	17,950,982
Goodwill	$	3,222,688	$	-	$	9,888,225	$	-	$	-	$	-		$	-		$	13,110,913
Core deposit intangible	$	-	$	1,172,141	$	5,747,339	$	-	$	-	$	-		$	-		$	6,919,480
Total assets	$	1,400,307,827	$	993,768,912	$	642,761,140	$	426,159,677	$	-	$	382,407,292		$	(388,218,153	)	$	3,457,186,695

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
Provision for loan/lease losses	$	1,970,835	$	700,000	$	-	$	600,000	$	-	$	-		$	-		$	3,270,835
Net income	$	6,730,039	$	6,079,717	$	-	$	1,389,954	$	833,972	$	13,049,955		$	(15,033,681	)	$	13,049,956
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,371,653	$	-	$	-	$	-	$	-		$	-		$	1,371,653
Total assets	$	1,390,025,232	$	904,367,275	$	-	$	402,157,473	$	-	$	328,099,700		$	(341,215,392	)	$	2,683,434,288