13.	SEGMENT REPORTING

Under

ASC Topic

280,

Segment Reporting

, certain information is disclosed for the

two

reportable operating segments of Bancshares: the Bank and ALC. The reportable segments were determined using the internal management reporting system. These segments comprise Bancshares’ and the Bank’s significant subsidiaries. The accounting policies for each segment are the same as those described in Note

“Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form

-K as of and for the year ended

December

31,

2016.

The segment results include certain overhead allocations and intercompany transactions that were recorded at current market prices. All intercompany transactions have been eliminated to determine the consolidated balances. The results for the

two

reportable segments of the Company are included in the tables below.

					All
	Bank		ALC		Other			Eliminations			Consolidated
	(Dollars in Thousands)
For the three months ended March 3 1 , 2017 :
Net interest income	$	3,911	$	3,005	$	3		$	—		$	6,919
Provision for loan losses		—		515		—			—			515
Total non-interest income		836		244		850			(763	)		1,167
Total non-interest expense		4,401		2,377		429			(170	)		7,037
Income before income taxes		346		357		424			(593	)		534
Provision for income taxes		98		130		(98	)		—			130
Net income	$	248	$	227	$	522		$	(593	)	$	404
Other significant items:
Total assets	$	622,528	$	88,233	$	82,667		$	(173,601	)	$	619,827
Total investment securities		213,417		—		80			—			213,497
Total loans, net		309,425		84,761		—			(76,509	)		317,677
Investment in subsidiaries		5		—		76,976			(76,976	)		5
Fixed asset additions		4,025		62		—			—			4,087
Depreciation and amortization expense		201		41		—			—			242
Total interest income from external customers		3,392		4,118		—			—			7,510
Total interest income from affiliates		1,114		—		3			(1,117	)		—

						All
	Bank			ALC		Other			Eliminations			Consolidated
	(Dollars in Thousands)
For the three months ended March 31 , 2016 :
Net interest income	$	3,598		$	3,060	$	3		$	—		$	6,661
Provision (reduction in reserve) for loan losses		(280	)		447		—			—			167
Total non-interest income		721			252		675			(659	)		989
Total non-interest expense		4,334			2,427		440			(135	)		7,066
Income before income taxes		265			438		238			(524	)		417
Provision for income taxes		48			158		(106	)		—			100
Net income	$	217		$	280	$	344		$	(524	)	$	317
Other significant items:
Total assets	$	577,945		$	84,353	$	83,129		$	(169,845	)	$	575,582
Total investment securities		231,386			—		80			—			231,466
Total loans, net		256,037			80,480		—			(72,542	)		263,975
Investment in subsidiaries		5			—		77,716			(77,716	)		5
Fixed asset addition		3,224			5		—			—			3,229
Depreciation and amortization expense		180			52		—			—			232
Total interest income from external customers		3,124			4,072		—			—			7,196
Total interest income from affiliates		1,012			—		3			(1,015	)		—