Segment Reporting
 9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
Note 10 – Segment Reporting
 
The Company has two reportable segments: traditional commercial banking and mortgage banking. 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 three and nine months ended September 30, 2017 and 2016 (in thousands):
 
 
 
Commercial
 
Mortgage
 
 
 
Consolidated
 
 
 
Banking
 
Banking
 
Eliminations
 
Totals
 
Three Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
$
4,313
 
$
72
 
$
(5)
 
$
4,380
 
Gain on sale of loans
 
 
-
 
 
1,395
 
 
-
 
 
1,395
 
Other revenues
 
 
566
 
 
158
 
 
(41)
 
 
683
 
Total revenues
 
 
4,879
 
 
1,625
 
 
(46)
 
 
6,458
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
688
 
 
5
 
 
(5)
 
 
688
 
Salaries and benefits
 
 
2,010
 
 
975
 
 
-
 
 
2,985
 
Commissions
 
 
-
 
 
431
 
 
-
 
 
431
 
Other expenses
 
 
1,775
 
 
241
 
 
(41)
 
 
1,975
 
Total operating expenses
 
 
4,473
 
 
1,652
 
 
(46)
 
 
6,079
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
406
 
$
(27)
 
$
-
 
$
379
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
467,558
 
$
10,123
 
$
(12,975)
 
$
464,706
 
 
 
 
Commercial
 
Mortgage
 
 
 
Consolidated
 
 
 
Banking
 
Banking
 
Eliminations
 
Totals
 
Three Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
$
3,995
 
$
165
 
$
(56)
 
$
4,104
 
Gain on sale of loans
 
 
-
 
 
2,043
 
 
-
 
 
2,043
 
Other revenues
 
 
1,109
 
 
229
 
 
(32)
 
 
1,306
 
Total revenues
 
 
5,104
 
 
2,437
 
 
(88)
 
 
7,453
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
660
 
 
56
 
 
(56)
 
 
660
 
Salaries and benefits
 
 
2,066
 
 
979
 
 
-
 
 
3,045
 
Commissions
 
 
-
 
 
533
 
 
-
 
 
533
 
Other expenses
 
 
2,370
 
 
297
 
 
(32)
 
 
2,635
 
Total operating expenses
 
 
5,096
 
 
1,865
 
 
(88)
 
 
6,873
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
8
 
$
572
 
$
-
 
$
580
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
450,043
 
$
10,562
 
$
(14,314)
 
$
446,291
 
 
 
 
Commercial
 
Mortgage
 
 
 
Consolidated
 
 
 
Banking
 
Banking
 
Eliminations
 
Totals
 
Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
$
12,513
 
$
205
 
$
(15)
 
$
12,703
 
Gain on sale of loans
 
 
-
 
 
4,195
 
 
-
 
 
4,195
 
Other revenues
 
 
1,680
 
 
503
 
 
(137)
 
 
2,046
 
Total revenues
 
 
14,193
 
 
4,903
 
 
(152)
 
 
18,944
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
1,997
 
 
15
 
 
(15)
 
 
1,997
 
Salaries and benefits
 
 
6,090
 
 
2,952
 
 
-
 
 
9,042
 
Commissions
 
 
-
 
 
1,180
 
 
-
 
 
1,180
 
Other expenses
 
 
4,914
 
 
689
 
 
(137)
 
 
5,466
 
Total operating expenses
 
 
13,001
 
 
4,836
 
 
(152)
 
 
17,685
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
1,192
 
$
67
 
$
-
 
$
1,259
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
467,558
 
$
10,123
 
$
(12,975)
 
$
464,706
 
 
 
 
 
Commercial
 
 
Mortgage
 
 
 
 
 
Consolidated
 
 
 
 
Banking
 
 
Banking
 
 
Eliminations
 
 
Totals
 
Nine Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
$
11,625
 
$
363
 
$
(98)
 
$
11,890
 
Gain on sale of loans
 
 
-
 
 
4,630
 
 
-
 
 
4,630
 
Other revenues
 
 
2,994
 
 
533
 
 
(129)
 
 
3,398
 
Total revenues
 
 
14,619
 
 
5,526
 
 
(227)
 
 
19,918
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
1,958
 
 
98
 
 
(98)
 
 
1,958
 
Salaries and benefits
 
 
5,828
 
 
2,635
 
 
-
 
 
8,463
 
Commissions
 
 
-
 
 
1,163
 
 
-
 
 
1,163
 
Other expenses
 
 
6,014
 
 
808
 
 
(129)
 
 
6,693
 
Total operating expenses
 
 
13,800
 
 
4,704
 
 
(227)
 
 
18,277
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
819
 
$
822
 
$
-
 
$
1,641
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
450,043
 
$
10,562
 
$
(14,314)
 
$
446,291