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

months ended

March 31, 2018

and

2017.

	Commercial Banking								Wealth					Intercompany			Consolidated
	QCBT		CRBT		CSB		RB&T		Management		All Other			Eliminations			Total
Three Months Ended March 31, 2018
Total revenue	$	15,807,570	$	15,997,332	$	8,163,323	$	4,997,945	$	3,189,425	$	12,532,043		$	(12,599,893	)	$	48,087,745
Net interest income		12,120,302		10,835,848		6,743,947		3,465,154		-		(762,333	)		-			32,402,918
Provision		1,120,409		601,828		575,602		242,000		-		-			-			2,539,839
Net income		4,457,868		4,616,528		1,868,588		741,295		770,865		10,514,510			(12,419,693	)		10,549,961
Goodwill		3,222,688		15,223,179		9,888,225		-		-		-			-			28,334,092
Core deposit intangible		-		3,566,728		5,207,674		-		-		-			-			8,774,402
Total assets		1,526,829,646		1,331,208,620		696,978,705		468,112,032		-		447,591,932			(444,406,521	)		4,026,314,414

Three Months Ended March 31, 2017
Total revenue	$	13,535,941	$	10,386,545	$	8,131,706	$	3,947,799	$	2,701,806	$	9,876,143		$	(9,951,087	)	$	38,628,853
Net interest income		11,301,482		6,974,047		7,026,508		2,968,074		-		(601,228	)		-			27,668,883
Provision		931,109		250,000		774,000		150,000		-		-			-			2,105,109
Net income		3,655,006		2,892,560		1,895,134		844,569		561,062		9,184,968			(9,848,334	)		9,184,965
Goodwill		3,222,688		-		9,888,225		-		-		-			-			13,110,913
Core deposit intangible		-		1,222,019		5,928,327		-		-		-			-			7,150,346
Total assets		1,442,952,197		929,111,309		608,431,003		398,454,864		-		377,316,912			(375,253,667	)		3,381,012,618