14.	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, 2018.

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 , 2019 :
Net interest income	$	6,009	$	3,158	$	6		$	—		$	9,173
Provision for loan and lease losses		—		400		—			—			400
Total non-interest income		1,078		219		1,581			(1,613	)		1,265
Total non-interest expense		5,833		2,368		427			(175	)		8,453
Income before income taxes		1,254		609		1,160			(1,438	)		1,585
Provision for income taxes		262		143		(54	)		—			351
Net income	$	992	$	466	$	1,214		$	(1,438	)	$	1,234
Other significant items:
Total assets	$	796,876	$	102,780	$	86,977		$	(191,299	)	$	795,334
Total investment securities		147,947		—		78			—			148,025
Total loans, net		492,895		98,902		—			(89,037	)		502,760
Goodwill and core deposit intangible, net		9,184		—		—			—			9,184
Investment in subsidiaries		5		—		81,236			(81,236	)		5
Fixed asset additions		1,677		14		—			—			1,691
Depreciation and amortization expense		367		33		—			—			400
Total interest income from external customers		6,493		4,319		1			—			10,813
Total interest income from affiliates		1,161		—		5			(1,166	)		—

					All
	Bank		ALC		Other			Eliminations			Consolidated
	(Dollars in Thousands)
For the three months ended March 31 , 2018 :
Net interest income	$	4,117	$	3,193	$	4		$	—		$	7,314
Provision for loan and lease losses		39		619		—			—			658
Total non-interest income		867		256		853			(836	)		1,140
Total non-interest expense		4,531		2,524		447			(201	)		7,301
Income before income taxes		414		306		410			(635	)		495
Provision for income taxes		70		70		(59	)		—			81
Net income	$	344	$	236	$	469		$	(635	)	$	414
Other significant items:
Total assets	$	629,954	$	97,685	$	81,020		$	(181,340	)	$	627,319
Total investment securities		181,862		—		80			—			181,942
Total loans, net		344,319		94,529		—			(85,043	)		353,805
Goodwill and core deposit intangible, net		—		—		—			—			—
Investment in subsidiaries		5		—		75,055			(75,055	)		5
Fixed asset addition		113		2		—			—			115
Depreciation and amortization expense		318		33		—			—			351
Total interest income from external customers		3,837		4,282		—			—			8,119
Total interest income from affiliates		1,089		—		4			(1,093	)		—