NOTE 8 - BUSINESS SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

BUSINESS SEGMENT INFORMATION

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 four subsidiary banks wholly owned by the Company: QCBT, CRBT, CSB, and SFCB. 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 subsidiary banks and the Bates Companies in aggregate. The Bates Companies were sold on August 12, 2020 and the business segment information below reflects the activity of the Bates Companies through this date. 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 corporate operations of the parent and operations of all other consolidated subsidiaries and/or defined operating segments that fall below the segment reporting thresholds.  The financial results for RB&T prior to the sale of the majority of its assets and liabilities at November 30, 2019 are also included in the Company’s All Other Segment.

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, 2020 and 2019.

	Commercial Banking								Wealth				Intercompany		Consolidated
	QCBT		CRBT		CSB		SFCB		Management		All other		Eliminations		Total
	(dollars in thousands)
Three Months Ended September 30, 2020
Total revenue	$	20,856	$	43,331	$	11,033	$	10,266	$	3,545	$	21,657	$	(21,839)	$	88,849
Net interest income		16,648		14,432		8,593		6,159		—		(1,531)		280		44,581
Provision for loan/lease losses		7,861		8,878		2,493		1,110		—		—		—		20,342
Net income (loss) from continuing operations		2,455		13,221		1,867		2,869		1,053		17,362		(21,483)		17,344
Goodwill		3,223		14,980		9,888		45,975		—		—		—		74,066
Intangibles		—		2,313		3,474		6,115		—		—		—		11,902
Total assets		2,205,934		2,012,182		937,016		803,478		—		756,716		(850,766)		5,864,560
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 for loan/lease losses		948		150		150		276		—		488		—		2,012
Net income (loss) from continuing operations		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
Nine Months Ended September 30, 2020
Total revenue	$	60,083	$	99,938	$	30,836	$	28,490	$	11,211	$	55,087	$	(55,342)	$	230,303
Net interest income		46,728		38,638		23,631		18,002		—		(4,514)		758		123,243
Provision for loan/lease losses		18,583		18,288		7,268		4,485		—		—		—		48,624
Net income (loss)		10,664		30,178		3,496		6,974		2,860		42,296		(54,157)		42,311
Goodwill		3,223		14,980		9,888		45,975		—		—		—		74,066
Intangibles		—		2,313		3,474		6,115		—		—		—		11,902
Total assets		2,205,934		2,012,182		937,016		803,478		—		756,716		(850,766)		5,864,560
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) from continuing operations		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