15.	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, 2017.

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)
As of and for the three months ended September 30 , 2018 :
Net interest income	$	5,001		$	3,322	$	5		$	—		$	8,328
Provision for loan losses		176			613		—			—			789
Total non-interest income		1,850			268		630			(636	)		2,112
Total non-interest expense		6,508			2,384		455			(205	)		9,142
Income before income taxes		167			593		180			(431	)		509
Provision for income taxes		195			131		(57	)		—			269
Net income	$	(28	)	$	462	$	237		$	(431	)	$	240
Other significant items:
Total assets	$	805,007		$	105,859	$	84,362		$	(192,663	)	$	802,595
Total investment securities		159,416			—		80			—			159,496
Total loans, net		509,695			103,106		—			(92,979	)		519,822
Goodwill and core deposit intangible, net		9,557			—		—			—			9,557
Investment in subsidiaries		5			—		77,242			(77,242	)		5
Fixed asset additions		195			97		—			—			292
Depreciation and amortization expense		334			40		—			—			374
Total interest income from external customers		4,916			4,536		—			—			9,452
Total interest income from affiliates		1,212			—		5			(1,217	)		—

For the nine months ended September 30, 2018:
Net interest income	$	13,362		$	9,769	$	13		$	—		$	23,144
Provision for loan losses		215			1,934		—			—			2,149
Total non-interest income		3,665			796		2,167			(2,244	)		4,384
Total non-interest expense		15,927			7,334		1,267			(593	)		23,935
Income before income taxes		885			1,297		913			(1,651	)		1,444
Provision for income taxes		325			283		(177	)		—			431
Net income	$	560		$	1,014	$	1,090		$	(1,651	)	$	1,013
Other significant items:
Fixed asset additions		500			153		—			—			653
Depreciation and amortization expense		973			105		—			—			1,078
Total interest income from external customers		12,736			13,225		—			—			25,961
Total interest income from affiliates		3,455			—		13			(3,468	)		—

						All
	Bank			ALC		Other			Eliminations			Consolidated
	(Dollars in Thousands)
As of and for the three months ended September 30, 2017:
Net interest income	$	4,192		$	2,940	$	3		$	—		$	7,135
Provision (reduction in reserve) for loan losses		(130	)		503		—			—			373
Total non-interest income		1,005			219		954			(942	)		1,236
Total non-interest expense		4,699			2,303		336			(148	)		7,190
Income before income taxes		628			353		621			(794	)		808
Provision for income taxes		48			202		(77	)		—			173
Net income	$	580		$	151	$	698		$	(794	)	$	635
Other significant items:
Total assets	$	616,820		$	92,942	$	84,170		$	(179,333	)	$	614,599
Total investment securities		185,722			—		80			—			185,802
Total loans, net		329,327			89,326		—			(80,627	)		338,026
Investment in subsidiaries		5			—		78,469			(78,469	)		5
Fixed asset additions		818			13		—			—			831
Depreciation and amortization expense		238			41		—			—			279
Total interest income from external customers		3,596			4,224		—			—			7,820
Total interest income from affiliates		1,284			—		3			(1,287	)		—

For the nine months ended September 30, 2017:
Net interest income	$	12,168		$	8,933	$	10		$	—		$	21,111
Provision (reduction in reserve) for loan losses		(130	)		1,594		—			—			1,464
Total non-interest income		2,647			700		2,451			(2,465	)		3,333
Total non-interest expense		13,522			6,966		1,074			(472	)		21,090
Income before income taxes		1,423			1,073		1,387			(1,993	)		1,890
Provision for income taxes		249			458		(272	)		—			435
Net income	$	1,174		$	615	$	1,659		$	(1,993	)	$	1,455
Other significant items:
Fixed asset additions		8,578			103		—			—			8,681
Depreciation and amortization expense		657			124		—			—			781
Total interest income from external customers		10,493			12,520		—			—			23,013
Total interest income from affiliates		3,587			—		9			(3,596	)		—