Operating
segments
are components
of an
enterprise
about which
separate
financial
information
is available
that
is
evaluated
regularly
by
the
chief
operating
decision
maker
(“CODM”)
in
assessing
performance
and
in
deciding
how
to
allocate resources. The Company’s CODM is the
President, Chief Executive Officer,
and Chairman.
The Company
through the
Bank, its
sole direct
subsidiary,
operates
10
banking centers
in South
Florida providing
a
wide range
of personal
and business
banking products
and services,
and through
a subsidiary
of the
Bank, offers
clients
title insurance policies for real estate transactions closed at
the Bank. The Company’s business activities are similar in their
nature,
operations
and
economic
characteristics,
largely
serving
commercial
and
specialty
banking clients
with products
and services
that are
offered through
similar processes
and platforms.
Accounting policies
for the
products
and services
referenced here are the same as those described in Note 1, “Summary of Significant Accounting Policies”. The Company’s
segment revenue
is driven
primarily by
interest income
on loans
as well
as fee
income from
the origination
of loans
and
from fees charged on loans and deposit
accounts. Lending activities include loans
to individuals, which primarily consist of
home equity lines of credit, residential real estate loans, yacht loans, and consumer loans, and loans to
commercial clients,
which include
commercial and
industrial loans,
commercial real
estate loans,
residential real
estate loans,
correspondent
banking loans, and letters of credit.
The
CODM
regularly
reviews
consolidated
income
and
expenses,
as
presented
on
the
Consolidated
Statements
of
Operations,
in
addition
to
consolidated
assets
presented
on
the
Consolidated
Balance
Sheets.
The
significant
segment
expenses that the CODM receives
regularly are interest expense, provision for
credit losses, salaries and wages, employee
benefits,
and
occupancy.
The
CODM
evaluates
the
performance
of
the
segment
and
allocates
resources
based
on
net
income
that
is
also
reported
on
the
Consolidated
Statements
of
Operations
as
consolidated
net
income
to
maximize
shareholder value
.
Additionally,
consolidated
internal financial
information is
used by
the CODM
to monitor
credit quality
and credit loss expense. Furthermore, net income, as the measure of profit or loss, is used to monitor budget versus actual
results and
to perform
competitive analyses
that benchmark
the Company
to competitors.
As a
result, the
Company has
determined that it has only one reportable segment.