Segment Reporting

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 12 – 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 18-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.

The following table includes selected financial information by business segments for the first nine months of 2013 and 2012.

	Community		Insurance Products		Parent		Consolidated
(Dollars in thousands)	Banking		and Services		Company		Total
2013
Interest income	$	31,509	$	35	$	-	$	31,544
Interest expense		(5,238)		-		-		(5,238)
Provision for credit losses		(27,310)		-		-		(27,310)
Noninterest income		4,192		9,046		6		13,244
Noninterest expense		(17,449)		(7,638)		(5,131)		(30,218)
Net intersegment (expense) income		(3,982)		(530)		4,512		-
(Loss) income before taxes		(18,278)		913		(613)		(17,978)
Income tax benefit (expense)		7,289		(364)		244		7,169
Net (loss) income	$	(10,989)	$	549	$	(369)	$	(10,809)
Total assets	$	1,032,956	$	15,973	$	2,455	$	1,051,384
2012
Interest income	$	34,882	$	59	$	-	$	34,941
Interest expense		(7,967)		-		(16)		(7,983)
Provision for credit losses		(18,095)		-		-		(18,095)
Noninterest income		5,089		7,974		89		13,152
Noninterest expense		(17,969)		(7,407)		(4,494)		(29,870)
Net intersegment (expense) income		(3,903)		(392)		4,295		-
(Loss) income before taxes		(7,963)		234		(126)		(7,855)
Income tax benefit (expense)		3,336		(98)		53		3,291
Net (loss) income	$	(4,627)	$	136	$	(73)	$	(4,564)
Total assets	$	1,159,766	$	16,920	$	1,947	$	1,178,633