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, SFC Bank 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 five subsidiary banks and the Bates Companies 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, 2019 and 2018.


	Commercial Banking										Wealth				Intercompany		Consolidated
	QCBT		CRBT		CSB		SFC Bank		RB&T		Management		All other		Eliminations		Total
	(dollars in thousands)
Three Months Ended June 30, 2019
Total revenue	$	20,374	$	23,575	$	9,730	$	7,757	$	5,659	$	4,249	$	17,772	$	(17,870)	$	71,246
Net interest income		12,632		10,785		7,294		5,425		3,373		—		(1,496)		—		38,013
Provision		973		300		151		485		32		—		—		—		1,941
Net income (loss)		4,505		6,928		2,207		2,079		786		583		13,583		(17,167)		13,504
Goodwill		3,223		14,980		9,888		45,975		—		—		3,682		—		77,748
Intangibles		—		2,935		4,328		7,268		—		—		1,558		—		16,089
Total assets		1,637,115		1,527,521		806,704		671,644		523,262		—		641,639		(613,033)		5,194,852

Three Months Ended June 30, 2018
Total revenue	$	16,683	$	16,504	$	8,406	$	—	$	5,120	$	3,116	$	13,024	$	(13,142)	$	49,711
Net interest income		12,290		10,481		6,735		—		3,402		—		(823)		—		32,085
Provision		1,254		628		221		—		198		—		—		—		2,301
Net income (loss)		4,511		4,705		2,158		—		814		797		10,405		(12,945)		10,445
Goodwill		3,223		14,980		9,888		—		—		—		—		—		28,091
Intangibles		—		3,440		5,030		—		—		—		—		—		8,470
Total assets		1,563,643		1,345,431		712,139		—		484,123		—		463,207		(461,660)		4,106,883

Six Months Ended June 30, 2019
Total revenue	$	38,918	$	42,819	$	19,000	$	15,045	$	11,255	$	8,478	$	32,354	$	(32,528)	$	135,341
Net interest income		24,771		21,193		14,260		10,651		6,801		—		(2,755)		—		74,921
Provision for loan/lease losses		1,993		725		301		985		71		—		—		—		4,075
Net income (loss)		8,690		12,028		4,363		3,732		1,304		1,741		26,181		(31,617)		26,422
Goodwill		3,223		14,980		9,888		45,975		—		—		3,682		—		77,748
Intangibles		—		2,935		4,328		7,268		—		—		1,558		—		16,089
Total assets		1,637,115		1,527,521		806,704		671,644		523,262		—		641,639		(613,033)		5,194,852

Six Months Ended June 30, 2018
Total revenue	$	32,491	$	32,501	$	16,570	$	—	$	10,118	$	6,305	$	25,556	$	(25,742)	$	97,799
Net interest income		24,410		21,317		13,479		—		6,867		—		(1,585)		—		64,488
Provision for loan/lease losses		2,375		1,230		797		—		439		—		—		—		4,841
Net income (loss)		8,969		9,321		4,027		—		1,555		1,568		20,920		(25,365)		20,995
Goodwill		3,223		14,980		9,888		—		—		—		—		—		28,091
Intangibles		—		3,440		5,030		—		—		—		—		—		8,470
Total assets		1,563,643		1,345,431		712,139		—		484,123		—		463,207		(461,660)		4,106,883