17. 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, wealth management, 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, business services, and CRE loans. The wealth management segment includes the Trust Company, West Chester Capital Advisors (WCCA), our registered investment advisory firm, and Financial Services. Wealth management activities include 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 include the union collective investment funds, primarily the ERECT 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 corporate debt, and centralized interest rate risk management. Inter-segment revenues were not material.

The contribution of the major business segments to the Consolidated Statements of Operations for the three and nine months ended September 30, 2019 and 2018 were as follows (in thousands):


	Three months ended				Nine months ended
	September 30, 2019				September 30, 2019
	Total		Net		Total		Net
	revenue		income (loss)		revenue		income (loss)
Retail banking	$	7,064	$	1,316	$	20,597	$	3,673
Commercial banking		4,675		1,475		13,770		4,948
Wealth management		2,458		477		7,315		1,365
Investment/Parent		(1,338)		(1,579)		(3,843)		(4,627)
Total	$	12,859	$	1,689	$	37,839	$	5,359


	Three months ended				Nine months ended
	September 30, 2018				September 30, 2018
	Total		Net		Total		Net
	revenue		income (loss)		revenue		income (loss)
Retail banking	$	6,692	$	1,145	$	19,050	$	2,605
Commercial banking		4,762		1,876		13,729		5,076
Wealth management		2,379		483		7,288		1,423
Investment/Parent		(1,138)		(1,175)		(2,450)		(3,264)
Total	$	12,695	$	2,329	$	37,617	$	5,840