Segment Reporting

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

At June 30, 2015, the Corporation has three reportable business segments: Banking, Wealth Management and Insurance. The Corporation determines the segments based primarily upon product and service offerings, through the types of income generated and the regulatory environment. This is strategically how the Corporation operates and has positioned itself in the marketplace. Accordingly, significant operating decisions are based upon analysis of each of these segments. At June 30, 2015, these segments meet the quantitative thresholds for separate disclosure as a business segment. Non-reportable segments include the parent holding company and intercompany eliminations, and are included in the "Other" segment. Prior to 2014, the Corporation had only one reportable segment, Community Banking. During 2014, the Corporation acquired Girard Partners and Sterner Insurance and realigned the investment and trust operations into its Wealth Management Reporting unit; this resulted in the three reportable segments of Banking, Wealth Management and Insurance.

The Corporation's Banking segment consists of commercial and consumer banking. The Wealth Management segment consists of investment advisory services, retirement plan services, trust, municipal pension services and broker/dealer services. The Insurance segment consists of commercial lines, personal lines, benefits and human resources consulting.

Each segment generates revenue from a variety of products and services it provides. Examples of products and services provided for each reportable segment are indicated below.

Ÿ	The Banking segment provides financial services to consumers, businesses and governmental units. These services include a full range of banking services such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing.
Ÿ	The Wealth Management segment offers trust and investment advisory services, guardian and custodian of employee benefits and other trust and brokerage services, as well as a registered investment advisory managing private investment accounts for both individuals and institutions.
Ÿ	The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, group life and health coverage, employee benefit solutions and personal insurance lines.

The accounting policies, used in the disclosure of the operating segments, are the same as those described in Note 1, “Summary of Significant Accounting Policies".

The following table provides total assets by reportable operating segment as of the dates indicated.

(Dollars in thousands)	At June 30, 2015		At December 31, 2014		At June 30, 2014
Banking	$	2,701,275	$	2,154,485	$	2,125,787
Wealth Management	31,605		34,195		31,352
Insurance	25,389		22,930		20,429
Other	22,309		23,711		19,684
Consolidated assets	$	2,780,578	$	2,235,321	$	2,197,252

The following tables provide reportable segment-specific information and reconciliations to consolidated financial information for the three and six months ended June 30, 2015 and 2014.

	Three Months Ended
	June 30, 2015
(Dollars in thousands)	Banking		Wealth Management		Insurance			Other			Consolidated
Interest income	$	25,505	$	—	$	—		$	8		$	25,513
Interest expense	1,459		—		—			674			2,133
Net interest income	24,046		—		—			(666		)	23,380
Provision for loan and lease losses	1,141		—		—			—			1,141
Noninterest income	4,858		4,964		3,538			(9		)	13,351
Noninterest expense*	20,115		3,301		3,718			(302		)	26,832
Income (loss) before income taxes	7,648		1,663		(180		)	(373		)	8,758
Income taxes	1,801		636		(72		)	(73		)	2,292
Net income (loss)	$	5,847	$	1,027	$	(108	)	$	(300	)	$	6,466
Capital expenditures	$	1,504	$	—	$	8		$	5		$	1,517

	Three Months Ended
	June 30, 2014
(Dollars in thousands)	Banking		Wealth Management		Insurance		Other			Consolidated
Interest income	$	18,716	$	—	$	—	$	9		$	18,725
Interest expense	981		—		—		—			981
Net interest income	17,735		—		—		9			17,744
Provision for loan and lease losses	1,251		—		—		—			1,251
Noninterest income	3,972		4,994		2,557		401			11,924
Noninterest expense*	16,028		3,677		2,434		(349		)	21,790
Income before income taxes	4,428		1,317		123		759			6,627
Income taxes	721		488		55		283			1,547
Net income	$	3,707	$	829	$	68	$	476		$	5,080
Capital expenditures	$	1,244	$	40	$	58	$	35		$	1,377

	Six Months Ended
	June 30, 2015
(Dollars in thousands)	Banking		Wealth Management		Insurance		Other			Consolidated
Interest income	$	50,235	$	—	$	—	$	16		$	50,251
Interest expense	2,886		—		—		681			3,567
Net interest income	47,349		—		—		(665		)	46,684
Provision for loan and lease losses	2,215		—		—		—			2,215
Noninterest income	9,308		9,588		7,793		93			26,782
Noninterest expense*	40,762		6,987		7,017		(523		)	54,243
Income (loss) before income taxes	13,680		2,601		776		(49		)	17,008
Income taxes	3,003		1,010		326		87			4,426
Net income (loss)	$	10,677	$	1,591	$	450	$	(136	)	$	12,582
Capital expenditures	$	5,095	$	8	$	50	$	78		$	5,231

	Six Months Ended
	June 30, 2014
(Dollars in thousands)	Banking		Wealth Management		Insurance		Other			Consolidated
Interest income	$	37,653	$	—	$	—	$	18		$	37,671
Interest expense	1,981		—		—		(2		)	1,979
Net interest income	35,672		—		—		20			35,692
Provision for loan and lease losses	2,726		—		—		—			2,726
Noninterest income	7,617		9,984		6,029		435			24,065
Noninterest expense*	31,564		7,067		4,996		(954		)	42,673
Income before income taxes	8,999		2,917		1,033		1,409			14,358
Income taxes	1,479		1,092		436		545			3,552
Net income	$	7,520	$	1,825	$	597	$	864		$	10,806
Capital expenditures	$	1,703	$	72	$	67	$	67		$	1,909

*Includes an allocation of general and administrative expenses from both the parent holding company and the Bank. Generally speaking, these expenses are allocated based upon number of employees and square footage usage.