SEGMENT REPORTING

The Corporation manages its operations through two primary business segments: core banking and WMG. The core banking segment provides revenues by attracting deposits from the general public and using such funds to originate consumer, commercial, commercial real estate, and residential mortgage loans, primarily in the Corporation’s local markets, and to invest in securities. The WMG services segment provides revenues by providing trust and investment advisory services to clients.

Accounting policies for the segments are the same as those described in Note 1 of the Corporation’s 2019 Annual Report on Form 10-K, which was filed with the SEC on March 12, 2020. Summarized financial information concerning the Corporation’s reportable segments and the reconciliation to the Corporation’s consolidated results are shown in the following table. Income taxes are allocated based on the separate taxable income of each entity and indirect overhead expenses are allocated based on reasonable and equitable allocations applicable to the reportable segment. The Holding Company, CFS, and CRM column below includes amounts to eliminate transactions between segments (in thousands).



	Three months ended March 31, 2020
	Core Banking		WMG		Holding Company, CFS, and CRM			Consolidated Totals
Interest and dividend income	$	16,367	$	—	$	17		$	16,384
Interest expense	1,322		—		—			1,322
Net interest income	15,045		—		17			15,062
Provision for loan losses	3,050		—		—			3,050
Net interest income after provision for loan losses	11,995		—		17			12,012
Other non-interest income	2,364		2,229		137			4,730
Other non-interest expenses	11,882		1,602		265			13,749
Income (loss) before income tax expense (benefit)	2,477		627		(111		)	2,993
Income tax expense (benefit)	390		161		(49		)	502
Segment net income (loss)	$	2,087	$	466	$	(62	)	$	2,491

Segment assets	$	1,833,135	$	3,281	$	4,913		$	1,841,329



	Three months ended March 31, 2019
	Core Banking		WMG		Holding Company, CFS, and CRM			Consolidated Totals
Interest and dividend income	$	16,652	$	—	$	13		$	16,665
Interest expense	1,498		—		—			1,498
Net interest income	15,154		—		13			15,167
Provision for loan losses	1,093		—		—			1,093
Net interest income after provision for loan losses	14,061		—		13			14,074
Other non-interest income	2,465		2,276		184			4,925
Legal accruals and settlements	—		—		—			—
Other non-interest expenses	11,625		1,575		297			13,497
Income (loss) before income tax expense (benefit)	4,901		701		(100		)	5,502
Income tax expense (benefit)	889		179		(34		)	1,034
Segment net income (loss)	$	4,012	$	522	$	(66	)	$	4,468

Segment assets	$	1,758,795	$	3,697	$	7,080		$	1,769,572