NOTE 8 - BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2021

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 Commercial Banking business, is geographically divided by markets into the operating segments which are the four subsidiary banks wholly owned by the Company: QCBT, CRBT, CSB, and SFCB. Each of these operating 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 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.  

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, 2021 and 2020.

	Commercial Banking										Intercompany		Consolidated
	QCBT		CRBT		CSB		SFCB		All other		Eliminations		Total
	(dollars in thousands)
Three Months Ended June 30, 2021
Total revenue	$	21,676	$	26,498	$	10,809	$	9,181	$	137	$	(102)	$	68,199
Net interest income		16,152		14,005		8,672		6,479		(2,119)		327		43,516
Provision for credit losses		136		(692)		756		(200)		—		—		—
Net income (loss) from continuing operations		8,679		11,145		3,109		3,685		22,320		(26,589)		22,349
Goodwill		3,223		14,980		9,888		45,975		—		—		74,066
Intangibles		—		1,946		2,979		5,440		—		—		10,365
Total assets		2,059,634		1,913,761		1,079,930		850,067		81,076		(179,303)		5,805,165
Three Months Ended June 30, 2020
Total revenue	$	21,712	$	35,505	$	9,853	$	9,533	$	18,461	$	(17,788)	$	77,276
Net interest income		15,653		12,820		7,538		6,201		(1,509)		245		40,948
Provision for loan/lease losses		7,539		7,160		2,811		2,405		—		—		19,915
Net income (loss) from continuing operations		3,999		11,043		569		1,899		13,650		(17,421)		13,739
Goodwill		3,223		14,980		9,888		45,975		182		—		74,248
Intangibles		—		2,437		3,643		6,344		1,448		—		13,872
Total assets		1,984,245		2,021,043		903,648		745,470		715,740		(765,385)		5,604,761
Six Months Ended June 30, 2021
Total revenue	$	42,960	$	56,855	$	21,232	$	17,927	$	503	$	(224)	$	139,253
Net interest income		31,938		27,611		17,040		12,548		(4,221)		575		85,491
Provision for loan/lease losses		2,248		1,492		2,122		851		—		—		6,713
Net income (loss)		15,843		22,541		5,171		5,954		40,268		(49,446)		40,331
Goodwill		3,223		14,980		9,888		45,975		—		—		74,066
Intangibles		—		1,946		2,979		5,440		—		—		10,365
Total assets		2,059,634		1,913,761		1,079,930		850,067		81,076		(179,303)		5,805,165
Six Months Ended June 30, 2020
Total revenue	$	43,399	$	58,384	$	20,074	$	18,224	$	34,875	$	(33,502)	$	141,454
Net interest income		30,080		24,206		15,038		11,843		(2,998)		477		78,646
Provision for loan/lease losses		10,722		9,410		4,775		3,375		—		—		28,282
Net income (loss) from continuing operations		9,723		17,504		1,635		4,105		24,674		(32,674)		24,967
Goodwill		3,223		14,980		9,888		45,975		182		—		74,248
Intangibles		—		2,437		3,643		6,344		1,448		—		13,872
Total assets		1,984,245		2,021,043		903,648		745,470		715,740		(765,385)		5,604,761