| BUSINESS SEGMENT INFORMATION |
NOTE 9 – BUSINESS SEGMENT INFORMATION Selected financial and descriptive information is required to be disclosed for reportable operating segments, applying a “management perspective” as the basis for identifying reportable segments. The management perspective is determined by the view that management takes of the segments within the Company when making operating decisions, allocating resources, and measuring performance. The segments of the Company have been defined by the structure of the Company’s internal organization, focusing on the financial information that the Company’s operating decision-makers routinely use to make decisions about operating matters. The chief operating decision maker consists of the Chief Executive Officer and President of the Company. The chief operating decision maker reviews financial reports that detail the interest income, interest expense, provision for credit losses, noninterest income, salaries and benefits expense, occupancy expense, other noninterest expenses, income tax expense and net income from continuing operations and compares the actual results to the amounts budgeted and the reason for variances. The results of this review allow the Company’s chief operating decision maker to make operating decisions and allocate resources. Capital markets revenue is considered a significant source of noninterest income. Salaries and benefits expense and occupancy expense are considered significant noninterest expenses. The Company’s Commercial Banking business is geographically divided by markets into the operating segments which are the four subsidiary banks wholly owned by the Company: QCBT, CRBT, CSB, and GB. Each of these operating segments offers similar products and services, but is managed separately due to different pricing, product demand, and consumer markets. Each offers commercial, consumer, and mortgage loans and deposit services. The Company's All Other segment includes the corporate operations of the parent and operations of all other consolidated subsidiaries and/or defined operating segments that fall below the segment reporting thresholds. Selected financial information on the Company's business segments is presented as follows as of and for the three and six months ended June 30, 2025 and 2024: | | | | | | | | | | | | | | | | | | | | | | | | Commercial Banking | | | | Intercompany | | Consolidated | | | QCBT | | CRBT | | CSB | | GB | | All other | | Eliminations | | Total | | | | (dollars in thousands) | Three Months Ended June 30, 2025 | | | | | | | | | | | | | | | | | | | | | | Interest and dividend income | | $ | 36,857 | | $ | 32,949 | | $ | 20,981 | | $ | 30,369 | | $ | 72 | | $ | (981) | | $ | 120,247 | Interest expense | | | 17,887 | | | 12,926 | | | 8,468 | | | 16,004 | | | 4,284 | | | (1,404) | | | 58,165 | Net interest income | | | 18,970 | | | 20,023 | | | 12,513 | | | 14,365 | | | (4,212) | | | 423 | | | 62,082 | Provision for credit losses | | | 2,082 | | | 1,190 | | | 152 | | | 619 | | | — | | | — | | | 4,043 | Noninterest income | | | | | | | | | | | | | | | | | | | | | | Capital markets revenue | | | 16 | | | 8,553 | | | — | | | 1,300 | | | — | | | — | | | 9,869 | Other segment revenue items | | | 5,277 | | | 4,017 | | | 1,242 | | | 2,009 | | | 35,011 | | | (35,310) | | | 12,246 | Total noninterest income | | | 5,293 | | | 12,570 | | | 1,242 | | | 3,309 | | | 35,011 | | | (35,310) | | | 22,115 | Noninterest expense | | | | | | | | | | | | | | | | | | | | | | Salaries and benefits expense | | | 7,449 | | | 8,952 | | | 4,777 | | | 7,474 | | | (178) | | | — | | | 28,474 | Occupancy expense | | | 1,603 | | | 1,770 | | | 1,217 | | | 1,795 | | | 452 | | | — | | | 6,837 | Other segment expense items | | | 4,064 | | | 3,606 | | | 2,383 | | | 3,158 | | | 1,710 | | | (649) | | | 14,272 | Total noninterest expense | | | 13,116 | | | 14,328 | | | 8,377 | | | 12,427 | | | 1,984 | | | (649) | | | 49,583 | Income tax expense | | | 825 | | | 1,643 | | | 65 | | | (336) | | | (645) | | | — | | | 1,552 | Net income (loss) from continuing operations | | $ | 8,240 | | $ | 15,432 | | $ | 5,161 | | $ | 4,964 | | $ | 29,460 | | $ | (34,238) | | $ | 29,019 | | | | | | | | | | | | | | | | | | | | | | | Goodwill | | $ | 2,791 | | $ | 14,980 | | $ | 9,888 | | $ | 110,936 | | $ | — | | $ | — | | $ | 138,595 | Intangibles | | | — | | | 508 | | | 600 | | | 8,630 | | | — | | | — | | | 9,738 | Total assets | | | 2,662,450 | | | 2,664,293 | | | 1,605,966 | | | 2,365,944 | | | 1,381,743 | | | (1,438,065) | | | 9,242,331 | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2024 | | | | | | | | | | | | | | | | | | | | | | Interest and dividend income | | $ | 37,222 | | $ | 30,760 | | $ | 20,092 | | $ | 31,965 | | $ | 96 | | $ | (389) | | $ | 119,746 | Interest expense | | | 19,497 | | | 13,660 | | | 8,808 | | | 18,103 | | | 4,270 | | | (755) | | | 63,583 | Net interest income | | | 17,725 | | | 17,100 | | | 11,284 | | | 13,862 | | | (4,174) | | | 366 | | | 56,163 | Provision for credit losses | | | 3,228 | | | 2,028 | | | 47 | | | 193 | | | — | | | — | | | 5,496 | Noninterest income | | | | | | | | | | | | | | | | | | | | | | Capital markets revenue | | | — | | | 16,014 | | | — | | | 1,744 | | | — | | | — | | | 17,758 | Other segment revenue items | | | 4,644 | | | 3,394 | | | 1,387 | | | 4,214 | | | 37,199 | | | (37,707) | | | 13,131 | Total noninterest income | | | 4,644 | | | 19,408 | | | 1,387 | | | 5,958 | | | 37,199 | | | (37,707) | | | 30,889 | Noninterest expense | | | | | | | | | | | | | | | | | | | | | | Salaries and benefits expense | | | 7,986 | | | 8,873 | | | 4,617 | | | 6,842 | | | 2,761 | | | — | | | 31,079 | Occupancy expense | | | 1,451 | | | 1,558 | | | 1,178 | | | 1,747 | | | 443 | | | — | | | 6,377 | Other segment expense items | | | 3,725 | | | 3,524 | | | 2,216 | | | 2,586 | | | 984 | | | (603) | | | 12,432 | Total noninterest expense | | | 13,162 | | | 13,955 | | | 8,011 | | | 11,175 | | | 4,188 | | | (603) | | | 49,888 | Income tax expense | | | 423 | | | 2,788 | | | (14) | | | 187 | | | (830) | | | — | | | 2,554 | Net income (loss) from continuing operations | | $ | 5,556 | | $ | 17,737 | | $ | 4,627 | | $ | 8,265 | | $ | 29,667 | | $ | (36,738) | | $ | 29,114 | | | | | | | | | | | | | | | | | | | | | | | Goodwill | | $ | 3,223 | | $ | 14,980 | | $ | 9,888 | | $ | 110,936 | | $ | — | | $ | — | | $ | 139,027 | Intangibles | | | — | | | 755 | | | 1,148 | | | 10,538 | | | — | | | — | | | 12,441 | Total assets | | | 2,559,049 | | | 2,428,266 | | | 1,531,109 | | | 2,369,754 | | | 1,263,250 | | | (1,279,437) | | | 8,871,991 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | Commercial Banking | | | | | Intercompany | | Consolidated | | | QCBT | | CRBT | | CSB | | GB | | All other | | Eliminations | | Total | | | | (dollars in thousands) | Six Months Ended June 30, 2025 | | | | | | | | | | | | | | | | | | | | | | Interest and dividend income | | $ | 72,794 | | $ | 64,881 | | $ | 40,989 | | $ | 59,712 | | $ | 159 | | $ | (1,615) | | $ | 236,920 | Interest expense | | | 35,200 | | | 25,392 | | | 16,570 | | | 31,566 | | | 8,570 | | | (2,446) | | | 114,852 | Net interest income | | | 37,594 | | | 39,489 | | | 24,419 | | | 28,146 | | | (8,411) | | | 831 | | | 122,068 | Provision for credit losses | | | 3,494 | | | 1,276 | | | 1,514 | | | 1,993 | | | — | | | — | | | 8,277 | Noninterest income | | | | | | | | | | | | | | | | | | | | | | Capital markets revenue | | | 16 | | | 14,156 | | | 62 | | | 2,151 | | | — | | | — | | | 16,385 | Other segment revenue items | | | 10,488 | | | 6,412 | | | 2,744 | | | 3,683 | | | 66,727 | | | (67,432) | | | 22,622 | Total noninterest income | | | 10,504 | | | 20,568 | | | 2,806 | | | 5,834 | | | 66,727 | | | (67,432) | | | 39,007 | Noninterest expense | | | | | | | | | | | | | | | | | | | | | | Salaries and benefits expense | | | 14,858 | | | 16,813 | | | 9,650 | | | 13,978 | | | 539 | | | — | | | 55,838 | Occupancy expense | | | 3,142 | | | 3,366 | | | 2,455 | | | 3,392 | | | 937 | | | — | | | 13,292 | Other segment expense items | | | 8,098 | | | 7,158 | | | 4,488 | | | 6,234 | | | 2,308 | | | (1,294) | | | 26,992 | Total noninterest expense | | | 26,098 | | | 27,337 | | | 16,593 | | | 23,604 | | | 3,784 | | | (1,294) | | | 96,122 | Income tax expense | | | 1,722 | | | 2,407 | | | (181) | | | (752) | | | (1,336) | | | — | | | 1,860 | Net income (loss) from continuing operations | | $ | 16,784 | | $ | 29,037 | | $ | 9,299 | | $ | 9,135 | | $ | 55,868 | | $ | (65,307) | | $ | 54,816 | | | | | | | | | | | | | | | | | | | | | | | Goodwill | | $ | 2,791 | | $ | 14,980 | | $ | 9,888 | | $ | 110,936 | | $ | — | | $ | — | | $ | 138,595 | Intangibles | | | — | | | 508 | | | 600 | | | 8,630 | | | — | | | — | | | 9,738 | Total assets | | | 2,662,450 | | | 2,664,293 | | | 1,605,966 | | | 2,365,944 | | | 1,381,743 | | | (1,438,065) | | | 9,242,331 | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2024 | | | | | | | | | | | | | | | | | | | | | | Interest and dividend income | | $ | 72,952 | | $ | 60,529 | | $ | 39,338 | | $ | 62,508 | | $ | 160 | | $ | (692) | | $ | 234,795 | Interest expense | | | 38,264 | | | 26,521 | | | 16,979 | | | 35,132 | | | 8,443 | | | (1,406) | | | 123,933 | Net interest income | | | 34,688 | | | 34,008 | | | 22,359 | | | 27,376 | | | (8,283) | | | 714 | | | 110,862 | Provision for credit losses | | | 6,453 | | | 1,794 | | | 233 | | | (15) | | | — | | | — | | | 8,465 | Noninterest income | | | | | | | | | | | | | | | | | | | | | | Capital markets revenue | | | — | | | 31,219 | | | — | | | 2,996 | | | — | | | — | | | 34,215 | Other segment revenue items | | | 9,296 | | | 6,395 | | | 2,651 | | | 6,044 | | | 70,804 | | | (71,658) | | | 23,532 | Total noninterest income | | | 9,296 | | | 37,614 | | | 2,651 | | | 9,040 | | | 70,804 | | | (71,658) | | | 57,747 | Noninterest expense | | | | | | | | | | | | | | | | | | | | | | Salaries and benefits expense | | | 16,119 | | | 18,320 | | | 9,136 | | | 14,003 | | | 5,361 | | | — | | | 62,939 | Occupancy expense | | | 2,948 | | | 3,143 | | | 2,424 | | | 3,459 | | | 917 | | | — | | | 12,891 | Other segment expense items | | | 7,491 | | | 7,042 | | | 4,180 | | | 5,614 | | | 1,628 | | | (1,207) | | | 24,748 | Total noninterest expense | | | 26,558 | | | 28,505 | | | 15,740 | | | 23,076 | | | 7,906 | | | (1,207) | | | 100,578 | Income tax expense | | | 513 | | | 5,543 | | | (39) | | | 84 | | | (2,375) | | | — | | | 3,726 | Net income (loss) from continuing operations | | $ | 10,460 | | $ | 35,780 | | $ | 9,076 | | $ | 13,271 | | $ | 56,990 | | $ | (69,737) | | $ | 55,840 | | | | | | | | | | | | | | | | | | | | | | | Goodwill | | $ | 3,223 | | $ | 14,980 | | $ | 9,888 | | $ | 110,936 | | $ | — | | $ | — | | $ | 139,027 | Intangibles | | | — | | | 755 | | | 1,148 | | | 10,538 | | | — | | | — | | | 12,441 | Total assets | | | 2,559,049 | | | 2,428,266 | | | 1,531,109 | | | 2,369,754 | | | 1,263,250 | | | (1,279,437) | | | 8,871,991 | | | | | | | | | | | | | | | | | | | | | | |
Intercompany eliminations included in the selected financial information on the Company’s business segments consist of equity in net income of each subsidiary bank and investment in each subsidiary bank as follows: | | | | | | | | | | | | | | | | | | Commercial Banking | | | QCBT | | CRBT | | CSB | | GB | | Total | | | | (dollars in thousands) | Three Months Ended June 30, 2025 | | | | | | | | | | | | | | | | Other segment revenue items: | | | | | | | | | | | | | | | | Equity in net income of subsidiary bank | | $ | 8,240 | | $ | 15,432 | | $ | 5,161 | | $ | 4,964 | | $ | 33,797 | Total assets: | | | | | | | | | | | | | | | | Investment in subsidiary bank | | | 297,789 | | | 454,519 | | | 182,701 | | | 389,152 | | | 1,324,161 | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2024 | | | | | | | | | | | | | | | | Other segment revenue items: | | | | | | | | | | | | | | | | Equity in net income of subsidiary bank | | $ | 5,557 | | $ | 17,736 | | $ | 4,627 | | $ | 8,266 | | $ | 36,186 | Total assets: | | | | | | | | | | | | | | | | Investment in subsidiary bank | | | 268,996 | | | 386,642 | | | 161,611 | | | 367,634 | | | 1,184,883 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | | | | | | | | | | | | | | | Other segment revenue items: | | | | | | | | | | | | | | | | Equity in net income of subsidiary bank | | $ | 16,784 | | $ | 29,037 | | $ | 9,299 | | $ | 9,135 | | $ | 64,255 | Total assets: | | | | | | | | | | | | | | | | Investment in subsidiary bank | | | 297,789 | | | 454,519 | | | 182,701 | | | 389,152 | | | 1,324,161 | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2024 | | | | | | | | | | | | | | | | Other segment revenue items: | | | | | | | | | | | | | | | | Equity in net income of subsidiary bank | | $ | 10,460 | | $ | 35,779 | | $ | 9,076 | | $ | 13,272 | | $ | 68,587 | Total assets: | | | | | | | | | | | | | | | | Investment in subsidiary bank | | | 268,996 | | | 386,642 | | | 161,611 | | | 367,634 | | | 1,184,883 | | | | | | | | | | | | | | | | |
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