Segment Reporting

6 Months Ended

Jun. 30, 2011

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 11 – Segment Reporting

The Company operates two primary business segments:  Community Banking and Insurance Products and Services.  Through the Community Banking business, the Company provides services to consumers and small businesses on the Eastern Shore of Maryland and Delaware through its 19-branch network.  Community banking activities include small business services, retail brokerage, trust services and consumer banking products and services.  Loan products available to consumers include mortgage, home equity, automobile, marine, and installment loans, credit cards and other secured and unsecured personal lines of credit.  Small business lending includes commercial mortgages, real estate development loans, equipment and operating loans, as well as secured and unsecured lines of credit, credit cards, accounts receivable financing arrangements, and merchant card services.

Through the Insurance Products and Services business, the Company provides a full range of insurance products and services to businesses and consumers in the Company’s market areas.  Products include property and casualty, life, marine, individual health and long-term care insurance.  Pension and profit sharing plans and retirement plans for executives and employees are available to suit the needs of individual businesses.

Selected financial information by business segments for the first six months of 2011 and 2010 is included in the following table:

	Community			Insurance Products			Parent			Consolidated
(Dollars in thousands)	Banking			and Services			Company			Total
2011
Interest income	$	25,387		$	66		$	-		$	25,453
Interest expense		(5,628	)		-			(21	)		(5,649	)
Provision for credit losses		(11,785	)		-			-			(11,785	)
Noninterest income		3,422			5,284			70			8,776
Noninterest expense		(11,390	)		(4,743	)		(2,952	)		(19,085	)
Net intersegment (expense) income		(2,876	)		(244	)		3,120			-
Loss before tax benefit		(2,870	)		363			217			(2,290	)
Income tax benefit		1,220			(154	)		(92	)		974
Net loss	$	(1,650	)	$	209		$	125		$	(1,316	)
Total assets	$	1,102,389		$	18,933		$	2,869		$	1,124,191
2010
Interest income	$	27,708		$	87		$	-		$	27,795
Interest expense		(6,665	)		-			(44	)		(6,709	)
Provision for credit losses		(12,534	)		-			-			(12,534	)
Noninterest income		3,625			5,825			-			9,450
Noninterest expense		(11,820	)		(4,983	)		(3,206	)		(20,009	)
Net intersegment (expense) income		(2,828	)		(243	)		3,071			-
Loss before tax benefit		(2,514	)		686			(179	)		(2,007	)
Income tax benefit		1,115			(304	)		79			890
Net (loss) income	$	(1,399	)	$	382		$	(100	)	$	(1,117	)
Total assets	$	1,105,944		$	20,153		$	3,099		$	1,129,196