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

nine

months ended

September 30, 2017

and

2016.


	Commercial Banking								Wealth					Intercompany			Consolidated
	QCBT		CRBT		CSB		RB&T		Management		All Other			Eliminations			Total
Three Months Ended September 30, 2017
Total revenue	$	11,771,842	$	10,892,025	$	7,678,006	$	4,534,768	$	2,689,853	$	10,028,660		$	(7,052,986	)	$	40,542,168
Net interest income	$	11,664,970	$	7,903,483	$	6,379,111	$	3,245,346	$	-	$	(636,562	)	$	-		$	28,556,348
Provision	$	1,140,436	$	200,000	$	574,000	$	172,000	$	-	$	-		$	-		$	2,086,436
Net income	$	3,929,158	$	3,130,319	$	1,669,209	$	726,926	$	539,091	$	7,853,935		$	(9,994,703	)	$	7,853,935
Goodwill	$	3,222,688	$	-	$	9,888,225	$	-	$	-	$	-		$	-		$	13,110,913
Core deposit intangible	$	-	$	1,122,263	$	5,566,350	$	-	$	-	$	-		$	-		$	6,688,613
Total assets	$	1,456,251,244	$	1,007,062,151	$	631,963,143	$	445,098,530	$	-	$	395,697,820		$	(385,609,794	)	$	3,550,463,094

Three Months Ended September 30, 2016
Total revenue	$	18,026,215	$	10,065,032	$	2,675,741	$	4,232,205	$	2,284,577	$	8,463,636		$	(8,507,270	)	$	37,240,136
Net interest income	$	11,225,414	$	7,594,557	$	2,191,862	$	3,056,989	$	-	$	(438,045	)	$	-		$	23,630,777
Provision	$	1,137,986	$	-	$	270,000	$	200,000	$	-	$	-		$	-		$	1,607,986
Net income	$	3,596,469	$	3,286,724	$	188,608	$	944,781	$	398,859	$	6,107,492		$	(8,415,432	)	$	6,107,501
Goodwill	$	3,222,688	$	-	$	10,408,938	$	-	$	-	$	-		$	-		$	13,631,626
Core deposit intangible	$	-	$	1,321,775	$	6,291,818	$	-	$	-	$	-		$	-		$	7,613,593
Total assets	$	1,407,733,009	$	887,592,695	$	580,210,270	$	393,191,774	$	-	$	368,990,749		$	(356,732,388	)	$	3,280,986,109

Nine Months Ended September 30, 2017
Total revenue	$	39,517,823	$	31,428,339	$	23,981,019	$	12,723,998	$	7,952,495	$	30,086,617		$	(27,283,484	)	$	118,406,807
Net interest income	$	34,381,270	$	22,107,955	$	20,326,439	$	9,308,932	$	-	$	(1,852,668	)	$	-		$	84,271,928
Provision	$	2,624,538	$	750,000	$	2,209,000	$	631,000	$	-	$	-		$	-		$	6,214,538
Net income	$	11,657,941	$	8,893,461	$	5,484,383	$	2,406,337	$	1,554,618	$	25,804,917		$	(29,996,740	)	$	25,804,917
Goodwill	$	3,222,688	$	-	$	9,888,225	$	-	$	-	$	-		$	-		$	13,110,913
Core deposit intangible	$	-	$	1,122,263	$	5,566,350	$	-	$	-	$	-		$	-		$	6,688,613
Total assets	$	1,456,251,244	$	1,007,062,151	$	631,963,143	$	445,098,530	$	-	$	395,697,820		$	(385,609,794	)	$	3,550,463,094

Nine Months Ended September 30, 2016
Total revenue	$	45,706,061	$	31,342,345	$	2,675,741	$	11,945,081	$	6,723,690	$	23,567,906		$	(23,720,471	)	$	98,240,353
Net interest income	$	33,394,620	$	21,755,270	$	2,191,862	$	8,914,380	$	-	$	(1,019,020	)	$	-		$	65,237,112
Provision	$	3,108,821	$	700,000	$	270,000	$	800,000	$	-	$	-		$	-		$	4,878,821
Net income	$	10,326,508	$	9,366,441	$	188,608	$	2,334,735	$	1,232,831	$	19,157,447		$	(23,449,113	)	$	19,157,457
Goodwill	$	3,222,688	$	-	$	10,408,938	$	-	$	-	$	-		$	-		$	13,631,626
Core deposit intangible	$	-	$	1,321,775	$	6,291,818	$	-	$	-	$	-		$	-		$	7,613,593
Total assets	$	1,407,733,009	$	887,592,695	$	580,210,270	$	393,191,774	$	-	$	368,990,749		$	(356,732,388	)	$	3,280,986,109