NOTE 8 – 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 nine months ended September 30, 2018 and 2017.


	Commercial Banking										Wealth				Intercompany		Consolidated
	QCBT		CRBT		CSB		RB&T		SFC Bank		Management		All other		Eliminations		Total
Three Months Ended September 30, 2018
Total revenue	$	17,321,929	$	16,799,795	$	8,888,955	$	5,244,856	$	7,360,191	$	3,255,241	$	12,475,438	$	(12,707,109)	$	58,639,296
Net interest income		12,218,192		10,832,532		7,101,066		3,414,760		5,700,566		—		(958,624)		4,991		38,313,483
Provision		409,086		452,742		20,000		4,849,000		475,000		—		—		—		6,205,828
Net income (loss)		4,827,397		4,868,765		2,533,392		(2,519,016)		2,197,448		768,095		8,600,144		(12,467,390)		8,808,835
Goodwill		3,222,688		14,979,984		9,888,225		—		45,527,529		—		—		—		73,618,426
Core deposit intangible		—		3,313,000		4,852,300		—		7,971,614		—		—		—		16,136,914
Total assets		1,579,327,112		1,354,294,043		734,535,978		484,059,163		623,519,770		—		554,345,558		(537,349,129)		4,792,732,495

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

Nine Months Ended September 30, 2018
Total revenue	$	49,812,373	$	49,301,104	$	25,458,573	$	15,362,717	$	7,360,191	$	9,560,319	$	38,031,924	$	(38,449,680)	$	156,437,521
Net interest income		36,628,528		32,149,435		20,579,523		10,281,763		5,700,566		—		(2,543,909)		4,991		102,800,897
Provision for loan/lease losses		2,783,988		1,682,312		816,602		5,288,500		475,000		—		—		—		11,046,402
Net income (loss)		13,796,167		14,190,335		6,560,327		(964,098)		2,197,448		2,335,871		29,520,347		(37,832,216)		29,804,181
Goodwill		3,222,688		14,979,984		9,888,225		—		45,527,529		—		—		—		73,618,426
Core deposit intangible		—		3,313,000		4,852,300		—		7,971,614		—		—		—		16,136,914
Total assets		1,579,327,112		1,354,294,043		734,535,978		484,059,163		623,519,770		—		554,345,558		(537,349,129)		4,792,732,495

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 for loan/lease losses		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