Segment Reporting
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
Note 18.
Segment Reporting
 
In previous reports, the Company concluded that it had one operating and reportable segment, “Community Banking”. This conclusion was based on the fact that the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities supports the others. The Company has re-assessed its segment reporting and decided to report two segments: traditional commercial banking and mortgage banking, as management has changed the information it reviews to make decisions. Revenues from commercial banking operations consist primarily of interest earned on loans and securities and fees from deposit services. Mortgage banking operating revenues consist principally of interest earned on mortgage loans held for sale, gains on sales of loans in the secondary mortgage market, and loan origination fee income.
 
The commercial banking segment provides the mortgage banking segment with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest based on the commercial banking segment’s cost of funds. Additionally, the mortgage banking segment leases premises from the commercial banking segment. These transactions are eliminated in the consolidation process.
 
The following table presents segment information as of and for the years ended December 31, 2016, 2015 and 2014. (in thousands):
 
 
 
Commercial
 
 
Mortgage
 
 
 
 
 
Consolidated
 
 
 
Banking
 
 
Banking
 
 
Eliminations
 
 
Totals
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
$
15,636
 
 
$
470
 
 
$
(117)
 
 
$
15,989
 
Gain on sale of loans
 
 
-
 
 
 
6,430
 
 
 
-
 
 
 
6,430
 
Other revenues
 
 
3,868
 
 
 
742
 
 
 
(190)
 
 
 
4,420
 
Total revenues
 
 
19,504
 
 
 
7,642
 
 
 
(307)
 
 
 
26,839
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
2,609
 
 
 
117
 
 
 
(117)
 
 
 
2,609
 
Salaries and benefits
 
 
7,702
 
 
 
3,593
 
 
 
-
 
 
 
11,295
 
Commissions
 
 
-
 
 
 
1,606
 
 
 
-
 
 
 
1,606
 
Other expenses
 
 
8,088
 
 
 
1,090
 
 
 
(190)
 
 
 
8,988
 
Total operating expenses
 
 
18,399
 
 
 
6,406
 
 
 
(307)
 
 
 
24,498
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
1,105
 
 
$
1,236
 
 
$
-
 
 
$
2,341
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
448,373
 
 
$
10,026
 
 
$
(13,597)
 
 
$
444,802
 
 
 
 
Commercial
 
 
Mortgage
 
 
 
 
 
Consolidated
 
 
 
Banking
 
 
Banking
 
 
Eliminations
 
 
Totals
 
Year Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
$
15,165
 
 
$
446
 
 
$
(107)
 
 
$
15,504
 
Gain on sale of loans
 
 
-
 
 
 
6,076
 
 
 
-
 
 
 
6,076
 
Other revenues
 
 
3,473
 
 
 
749
 
 
 
(240)
 
 
 
3,982
 
Total revenues
 
 
18,638
 
 
 
7,271
 
 
 
(347)
 
 
 
25,562
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
2,877
 
 
 
107
 
 
 
(117)
 
 
 
2,867
 
Salaries and benefits
 
 
7,346
 
 
 
3,500
 
 
 
-
 
 
 
10,846
 
Commissions
 
 
-
 
 
 
1,555
 
 
 
-
 
 
 
1,555
 
Other expenses
 
 
8,787
 
 
 
1,091
 
 
 
(230)
 
 
 
9,648
 
Total operating expenses
 
 
19,010
 
 
 
6,253
 
 
 
(347)
 
 
 
24,916
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(372)
 
 
$
1,018
 
 
$
-
 
 
$
646
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
426,038
 
 
$
8,806
 
 
$
(14,903)
 
 
$
419,941
 
 
 
 
Commercial
 
 
Mortgage
 
 
 
 
 
Consolidated
 
 
 
Banking
 
 
Banking
 
 
Eliminations
 
 
Totals
 
Year Ended December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
$
16,287
 
 
$
347
 
 
$
(56)
 
 
$
16,578
 
Gain on sale of loans
 
 
-
 
 
 
4,449
 
 
 
-
 
 
 
4,449
 
Other revenues
 
 
3,078
 
 
 
706
 
 
 
(344)
 
 
 
3,440
 
Total revenues
 
 
19,365
 
 
 
5,502
 
 
 
(400)
 
 
 
24,467
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
3,561
 
 
 
55
 
 
 
(56)
 
 
 
3,560
 
Salaries and benefits
 
 
7,454
 
 
 
3,231
 
 
 
-
 
 
 
10,685
 
Commissions
 
 
-
 
 
 
1,165
 
 
 
-
 
 
 
1,165
 
Other expenses
 
 
9,237
 
 
 
1,201
 
 
 
(344)
 
 
 
10,094
 
Total operating expenses
 
 
20,252
 
 
 
5,652
 
 
 
(400)
 
 
 
25,504
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(887)
 
 
$
(150)
 
 
$
-
 
 
$
(1,037)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
435,046
 
 
$
8,081
 
 
$
(9,123)
 
 
$
434,004