Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING & DISCONTINUED OPERATIONS

v3.10.0.1
SEGMENT REPORTING & DISCONTINUED OPERATIONS
 12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
SEGMENT REPORTING & DISCONTINUED OPERATIONS
SEGMENT REPORTING & DISCONTINUED OPERATIONS
 
On May 23, 2018, the Bank announced that it had entered into an agreement with a third-party mortgage company TFSB to allow TFSB to offer residential mortgages from certain Bank locations on the terms and conditions set forth in the agreement. Concurrently with this arrangement, the Bank began the process of winding down the operations of UMG, the Company's reportable mortgage segment. Effective at the close of business June 1, 2018, UMG was no longer originating mortgages in its name. The decision to exit the mortgage business was based on a number of strategic priorities and other factors, including the additional investment in the business required to achieve the necessary scale to be competitive. As a result of this decision, the community bank segment is the only remaining reportable segment and does not require separate reporting disclosures.

As of December 31, 2018, the Company's Consolidated Balance Sheets included assets from discontinued operations of $1.5 million, which did not include loans held for sale. The Company also reported $1.7 million as liabilities of discontinued operations.  As of December 31, 2017, the Company's Consolidated Balance Sheets included assets from discontinued operations of $44.7 million which included $40.7 million of loans held for sale. The Company also reported $3.7 million as liabilities of discontinued operations. Management believes there are no material on-going obligations with respect to the mortgage banking business that have not been recorded in the Company's consolidated financial statements.

The following table presents summarized operating results of the discontinued mortgage segment at December 31, 2018, 2017 and 2016, respectively (dollars in thousands):
 
 
2018
 
2017
 
2016
Net interest income
$
850

 
$
1,150

 
$
1,184

Provision for credit losses
(185
)
 
(46
)
 
217

Net interest income after provision for credit losses
1,035

 
1,196

 
967

Noninterest income
3,882

 
9,245

 
11,058

Noninterest expenses
9,197

 
9,097

 
9,613

Income before income taxes
(4,280
)
 
1,344

 
2,412

Income tax expense (benefit)
(1,115
)
 
597

 
834

Net income (loss) on discontinued operations
$
(3,165
)
 
$
747

 
$
1,578