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 five subsidiary banks wholly owned by the Company: QCBT, CRBT, CSB, RB&T and SFC Bank. 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 five 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.

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, 2018 and 2017.


	Commercial Banking								Wealth				Intercompany		Consolidated
	QCBT		CRBT		CSB		RB&T		Management		All other		Eliminations		Total
Three Months Ended June 30, 2018
Total revenue	$	16,682,874	$	16,503,977	$	8,406,295	$	5,119,916	$	3,115,653	$	13,024,443	$	(13,142,678)	$	49,710,480
Net interest income		12,290,034		10,481,055		6,734,510		3,401,849		—		(822,952)		—		32,084,496
Provision		1,254,493		627,742		221,000		197,500		—		—		—		2,300,735
Net income		4,510,902		4,705,042		2,158,347		813,623		796,911		10,405,693		(12,945,133)		10,445,385
Goodwill		3,222,688		14,979,984		9,888,225		—		—		—		—		28,090,897
Core deposit intangible		—		3,439,864		5,029,987		—		—		—		—		8,469,851
Total assets		1,563,643,434		1,345,431,093		712,138,515		484,123,277		—		463,206,792		(461,660,406)		4,106,882,705

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		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

Six Months Ended June 30, 2018
Total revenue	$	32,490,444	$	32,501,309	$	16,569,618	$	10,117,861	$	6,305,078	$	25,556,486	$	(25,742,571)	$	97,798,225
Net interest income		24,410,336		21,316,903		13,478,457		6,867,003		—		(1,585,285)		—		64,487,414
Provision for loan/lease losses		2,374,902		1,229,570		796,602		439,500		—		—		—		4,840,574
Net income		8,968,770		9,321,570		4,026,935		1,554,918		1,567,776		20,920,203		(25,364,826)		20,995,346
Goodwill		3,222,688		14,979,984		9,888,225		—		—		—		—		28,090,897
Core deposit intangible		—		3,439,864		5,029,987		—		—		—		—		8,469,851
Total assets		1,563,643,434		1,345,431,093		712,138,515		484,123,277		—		463,206,792		(461,660,406)		4,106,882,705

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