22. SEGMENT RESULTS

The financial performance of the Company is also monitored by an internal funds transfer pricing profitability measurement system which produces line of business results and key performance measures. The Company’s major business units include retail banking, commercial banking, trust, and investment/parent. The reported results reflect the underlying economics of the business segments. Expenses for centrally provided services are allocated based upon the cost and estimated usage of those services. The businesses are match-funded and interest rate risk is centrally managed and accounted for within the investment/parent business segment. The key performance measure the Company focuses on for each business segment is net income contribution.

Retail banking includes the deposit-gathering branch franchise and lending to both individuals and small businesses. Lending activities include residential mortgage loans, direct consumer loans, and small business commercial loans. Commercial banking to businesses includes commercial loans, and CRE loans. The trust segment contains our wealth management businesses which include the Trust Company, WCCA, our registered investment advisory firm and financial services. Wealth management includes personal trust products and services such as personal portfolio investment management, estate planning and administration, custodial services and pre-need trusts. Also, institutional trust products and services such as 401(k) plans, defined benefit and defined contribution employee benefit plans, and individual retirement accounts are included in this segment. Financial services include the sale of mutual funds, annuities, and insurance products. The wealth management businesses also includes the union collective investment funds, namely the ERECT and BUILD funds which are designed to use union pension dollars in construction projects that utilize union labor. The investment/parent includes the net results of investment securities and borrowing activities, general corporate expenses not allocated to the business segments, interest expense on guaranteed junior subordinated deferrable interest debentures, and centralized interest rate risk management. Inter-segment revenues were not material.

The contribution of the major business segments to the Consolidated Results of Operations were as follows:

YEAR ENDED DECEMBER 31, 2015

RETAIL BANKING

COMMERCIAL BANKING

TRUST

INVESTMENT/ PARENT

TOTAL

(IN THOUSANDS)

Net interest income

20,680

18,390

(3,767)

35,361

Provision for loan loss

192

1,058

—

1,250

Non-interest income

5,537

552

8,683

495

15,267

Non-interest expense

21,849

10,303

6,606

2,280

41,038

Income (loss) before income taxes

4,176

7,581

2,135

(5,552

)

8,340

Income tax expense (benefit)

1,160

2,167

726

(1,710

)

2,343

Net income (loss)

3,016

5,414

1,409

(3,842)

5,997

Total assets

415,433

589,840

5,263

138,386

1,148,922


	YEAR ENDED DECEMBER 31, 2014
	RETAIL BANKING		COMMERCIAL BANKING		TRUST		INVESTMENT/ PARENT			TOTAL
	(IN THOUSANDS)
Net interest income	$	20,141	$	16,777	$	47	$	(2,921	)	$	34,044
Provision for loan loss		57		318		—		—			375
Non-interest income		5,633		381		8,118		191			14,323
Non-interest expense		22,531		10,868		6,967		3,005			43,371
Income (loss) before income taxes		3,186		5,972		1,198		(5,735	)		4,621
Income tax expense (benefit)		958		1,819		634		(1,813	)		1,598
Net income (loss)	$	2,228	$	4,153	$	564	$	(3,922	)	$	3,023
Total assets	$	376,009	$	563,690	$	5,015	$	144,549		$	1,089,263


	YEAR ENDED DECEMBER 31, 2013
	RETAIL BANKING			COMMERCIAL BANKING			TRUST		INVESTMENT/ PARENT			TOTAL
	(IN THOUSANDS)
Net interest income	$	20,223		$	15,687		$	35	$	(3,084	)	$	32,861
Credit provision for loan loss		(92	)		(1,008	)		—		—			(1,100	)
Non-interest income		6,512			642			8,391		199			15,744
Non-interest expense		22,870			10,148			6,605		2,600			42,223
Income (loss) before income taxes		3,957			7,189			1,821		(5,485	)		7,482
Income tax expense (benefit)		1,165			2,166			619		(1,661	)		2,289
Net income (loss)	$	2,792		$	5,023		$	1,202	$	(3,824	)	$	5,193
Total assets	$	347,823		$	545,556		$	4,722	$	157,935		$	1,056,036