Note 9 - BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Business Segment Information

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 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 GB. 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, 2022 and 2021:

	Commercial Banking										Intercompany		Consolidated
	QCBT		CRBT		CSB		GB*		All other		Eliminations		Total
	(dollars in thousands)
Three Months Ended June 30, 2022
Total revenue	$	23,722	$	31,715	$	12,091	$	23,669	$	26,795	$	(27,005)	$	90,987
Net interest income		18,540		15,093		9,851		18,065		(2,494)		345		59,400
Provision for credit losses		617		(165)		100		10,648		—		—		11,200
Net income (loss) from continuing operations		8,425		13,256		3,374		1,027		15,612		(26,452)		15,242
Goodwill		3,223		14,980		9,888		109,516		—		—		137,607
Intangibles		—		1,463		2,340		14,530		—		—		18,333
Total assets		2,122,852		1,985,198		1,221,406		2,037,364		949,955		(923,834)		7,392,941
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 loan/lease 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
Six Months Ended June 30, 2022
Total revenue	$	46,202	$	56,926	$	23,407	$	31,513	$	55,707	$	(56,073)	$	157,682
Net interest income		35,854		29,416		19,182		24,593		(4,603)		691		105,133
Provision for loan/lease losses		(642)		(936)		(285)		10,147		—		—		8,284
Net income (loss) from continuing operations		18,395		24,385		7,500		4,131		39,439		(54,984)		38,866
Goodwill		3,223		14,980		9,888		109,516		—		—		137,607
Intangibles		—		1,463		2,340		14,530		—		—		18,333
Total assets		2,122,852		1,985,198		1,221,406		2,037,364		949,955		(923,834)		7,392,941
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) from continuing operations		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
* On April 1, 2022, the Company acquired GFED and merged its subsidiary bank, Guaranty Bank, into Springfield First Community Bank with the combined bank operating under the Guaranty Bank name.