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Note 22 - Segments
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

(22)

Segments

 

Bancorp’s principal activities include commercial banking and WM&T. Commercial banking provides a full range of loan and deposit products to individual consumers and businesses. Commercial banking also includes Bancorp’s mortgage banking and investment products sales activity. WM&T provides investment management, financial & retirement planning and trust & estate services, as well as retirement plan management for businesses and corporations in all markets in which Bancorp operates. The magnitude of WM&T revenue distinguishes Bancorp from other community banks of similar asset size.

 

Financial information for each business segment reflects that which is specifically identifiable or allocated based on an internal allocation method. Income taxes are allocated based on the effective federal income tax rate adjusted for any tax-exempt activity. All tax-exempt activity and provision have been allocated fully to the commercial banking segment. Measurement of performance of business segments is based on the management structure of Bancorp and is not necessarily comparable with similar information for any other financial institution. Information presented is also not necessarily indicative of the segments’ operations if they were independent entities.

 

The majority of the net assets of Bancorp are involved in the commercial banking segment. As of September 30, 2023, goodwill totaling $194 million was recorded on Bancorp’s consolidated balance sheets, of which $172 million is attributed to the commercial banking segment and $22 million is attributed to WM&T. The portion of total goodwill attributed to WM&T relates entirely to the CB acquisition, which generated $67 million in total goodwill, $8.5 million of which was subsequently written off as a result of Bancorp selling its interest in LFA effective December 31, 2022. With the exception of goodwill attributed to WM&T through the CB acquisition, assets assigned to WM&T consist primarily of a CLI asset associated with the WM&T business added through the CB acquisition, net premises and equipment and a receivable related to fees earned that have not been collected.

 

Selected financial information by business segment follows:

 

  

Three months ended September 30, 2023

  

Three months ended September 30, 2022

 

(in thousands)

 

Commercial

Banking

  

WM&T

  

Total

  

Commercial

Banking

  

WM&T

  

Total

 
                         

Net interest income

 $61,155  $160  $61,315  $62,270  $106  $62,376 

Provision for credit losses

  2,775   —   2,775   4,803   —   4,803 

Wealth management and trust services

  —   10,030   10,030   —   9,152   9,152 

All other non-interest income

  12,866   —   12,866   15,712   —   15,712 

Non-interest expenses

  41,788   4,914   46,702   39,370   5,503   44,873 

Income before income tax expense

  29,458   5,276   34,734   33,809   3,755   37,564 

Income tax expense

  6,497   1,145   7,642   8,209   815   9,024 

Net income

  22,961   4,131   27,092   25,600   2,940   28,540 

Less net income attributed to NCI

  —   —   —   85   —   85 

Net income available to stockholders

 $22,961  $4,131  $27,092  $25,515  $2,940  $28,455 
                         

Segment assets

 $7,867,626  $35,804  $7,903,430  $7,522,113  $32,097  $7,554,210 

 

  

Nine months ended September 30, 2023

  

Nine months ended September 30, 2022

 

(in thousands)

 

Commercial

Banking

  

WM&T

  

Total

  

Commercial

Banking

  

WM&T

  

Total

 
                         

Net interest income

 $184,895  $421  $185,316  $167,811  $309  $168,120 

Provision for credit losses

  7,750   —   7,750   6,882   —   6,882 

Wealth management and trust services

  —   29,703   29,703   —   26,890   26,890 

All other non-interest income

  38,100   —   38,100   39,117   —   39,117 

Non-interest expenses

  121,265   16,551   137,816   129,936   15,909   145,845 

Income before income tax expense

  93,980   13,573   107,553   70,110   11,290   81,400 

Income tax expense

  20,804   2,945   23,749   15,566   2,450   18,016 

Net income

  73,176   10,628   83,804   54,544   8,840   63,384 

Less net income attributed to NCI

  —   —   —   229   —   229 

Net income available to stockholders

 $73,176  $10,628  $83,804  $54,315  $8,840  $63,155 
                         

Segment assets

 $7,867,626  $35,804  $7,903,430  $7,522,113  $32,097  $7,554,210