NOTE 9 – 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 held for investment subsidiary banks wholly owned by the Company: QCBT, CRBT, CSB, 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, asset management, investment management and advisory services offered at the Company's four 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 as well as the corporate operations of the parent company. This segment also includes the results of segments classified as held for sale.

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, 2019 and 2018.


	Commercial Banking								Wealth				Intercompany		Consolidated
	QCBT		CRBT		CSB		SFC Bank		Management		All other		Eliminations		Total
	(dollars in thousands)
Three Months Ended September 30, 2019
Total revenue	$	21,230	$	25,707	$	11,596	$	8,351	$	4,122	$	27,753	$	(22,036)	$	76,723
Net interest income		13,357		11,478		8,894		5,056		—		1,934		—		40,719
Provision		948		150		150		276		—		488		—		2,012
Net income (loss)		4,870		7,900		3,482		2,116		926		15,081		(19,280)		15,095
Goodwill		3,223		14,980		9,888		45,975		—		3,682		—		77,748
Intangibles		—		2,810		4,154		7,034		—		1,531		—		15,529
Total assets		1,642,950		1,592,896		801,596		693,898		—		1,180,872		(619,830)		5,292,382

Three Months Ended September 30, 2018
Total revenue	$	17,322	$	16,800	$	8,889	$	7,360	$	3,255	$	17,721	$	(12,707)	$	58,640
Net interest income		12,218		10,833		7,101		5,701		—		2,456		5		38,314
Provision		409		453		20		475		—		4,849		—		6,206
Net income (loss) from continuing operations		4,827		4,869		2,533		2,198		768		6,081		(12,467)		8,809
Goodwill		3,223		14,979		9,888		45,528		—		—		—		73,618
Intangibles		—		3,313		4,852		7,972		—		—		—		16,137
Total assets		1,579,327		1,354,293		734,536		623,520		—		1,038,405		(537,349)		4,792,732

Nine Months Ended September 30, 2019
Total revenue	$	60,148	$	68,526	$	30,596	$	23,396	$	12,599	$	71,361	$	(54,563)	$	212,063
Net interest income		38,129		32,671		23,154		15,707		—		5,979		—		115,640
Provision for loan/lease losses		2,941		875		451		1,261		—		559		—		6,087
Net income (loss)		13,560		19,928		7,845		5,848		2,667		42,566		(50,897)		41,517
Goodwill		3,223		14,980		9,888		45,975		—		3,682		—		77,748
Intangibles		—		2,810		4,154		7,034		—		1,531		—		15,529
Total assets		1,642,950		1,592,896		801,596		693,898		—		1,180,872		(619,830)		5,292,382

Nine Months Ended September 30, 2018
Total revenue	$	49,812	$	49,301	$	25,459	$	7,360	$	9,560	$	53,395	$	(38,450)	$	156,437
Net interest income		36,629		32,149		20,579		5,701		—		7,738		5		102,801
Provision for loan/lease losses		2,784		1,682		817		475		—		5,288		—		11,046
Net income (loss) from continuing operations		13,796		14,191		6,560		2,197		2,336		28,556		(37,832)		29,804
Goodwill		3,223		14,979		9,888		45,528		—		—		—		73,618
Intangibles		—		3,313		4,852		7,972		—		—		—		16,137
Total assets		1,579,327		1,354,293		734,536		623,520		—		1,038,405		(537,349)		4,792,732