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)
As of and for the three months ended June 30 , 2019 :
Net interest income	$	5,986	$	3,240	$	7		$	—		$	9,233
Provision for loan losses		90		625		—			—			715
Total non-interest income		1,108		228		1,384			(1,429	)		1,291
Total non-interest expense		5,798		2,366		493			(153	)		8,504
Income before income taxes		1,206		477		898			(1,276	)		1,305
Provision for income taxes		249		121		(70	)		—			300
Net income	$	957	$	356	$	968		$	(1,276	)	$	1,005
Other significant items:
Total assets	$	778,252	$	107,911	$	89,102		$	(198,094	)	$	777,171
Total investment securities		136,569		—		80			—			136,649
Total loans, net		501,177		104,007		—			(93,669	)		511,515
Goodwill and core deposit intangible, net		9,056		—		—			—			9,056
Investment in subsidiaries		5		—		83,436			(83,436	)		5
Fixed asset additions		887		64		—			—			951
Depreciation and amortization expense		361		35		—			—			396
Total interest income from external customers		6,476		4,447		—			—			10,923
Total interest income from affiliates		1,206		—		7			(1,213	)		—

For the six months ended June 30, 2019:
Net interest income	$	11,995	$	6,398	$	13		$	—		$	18,406
Provision for loan losses		90		1,025		—			—			1,115
Total non-interest income		2,186		447		2,965			(3,042	)		2,556
Total non-interest expense		11,631		4,734		920			(328	)		16,957
Income before income taxes		2,460		1,086		2,058			(2,714	)		2,890
Provision for income taxes		511		264		(124	)		—			651
Net income	$	1,949	$	822	$	2,182		$	(2,714	)	$	2,239
Other significant items:
Fixed asset additions		2,564		78		—			—			2,642
Depreciation and amortization expense		728		68		—			—			796
Total interest income from external customers		12,969		8,766		1			—			21,736
Total interest income from affiliates		2,367		—		12			(2,379	)		—

					All
	Bank		ALC		Other			Eliminations			Consolidated
	(Dollars in Thousands)
As of and for the three months ended June 30 , 2018 :
Net interest income	$	4,244	$	3,254	$	4		$	—		$	7,502
Provision for loan losses		—		702		—			—			702
Total non-interest income		948		272		684			(772	)		1,132
Total non-interest expense		4,888		2,426		365			(187	)		7,492
Income before income taxes		304		398		323			(585	)		440
Provision for income taxes		60		82		(61	)		—			81
Net income	$	244	$	316	$	384		$	(585	)	$	359
Other significant items:
Total assets	$	636,623	$	103,624	$	81,132		$	(187,343	)	$	634,036
Total investment securities		165,660		—		80			—			165,740
Total loans, net		345,673		100,792		—			(90,936	)		355,529
Goodwill and core deposit intangible, net		—		—		—			—			—
Investment in subsidiaries		5		—		75,241			(75,241	)		5
Fixed asset additions		439		55		—			—			494
Depreciation and amortization expense		321		32		—			—			353
Total interest income from external customers		3,983		4,407		—			—			8,390
Total interest income from affiliates		1,154		—		4			(1,158	)		—

For the six months ended June 30, 2018:
Net interest income	$	8,361	$	6,447	$	8		$	—		$	14,816
Provision for loan losses		39		1,321		—			—			1,360
Total non-interest income		1,815		528		1,537			(1,608	)		2,272
Total non-interest expense		9,419		4,950		812			(388	)		14,793
Income before income taxes		718		704		733			(1,220	)		935
Provision for income taxes		130		152		(120	)		—			162
Net income	$	588	$	552	$	853		$	(1,220	)	$	773
Other significant items:
Fixed asset additions		658		57		—			—			715
Depreciation and amortization expense		639		65		—			—			704
Total interest income from external customers		7,820		8,689		—			—			16,509
Total interest income from affiliates		2,243		—		8			(2,251	)		—