SEGMENT REPORTING

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 25. SEGMENT REPORTING

The Company operates two primary business segments: Community Banking and Insurance Products and Services. The Community Banking business provides services to consumers and small businesses on the Eastern Shore of Maryland and in 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.

Selected financial information by business segments is included in the following table.

	Community		Insurance Products		Parent
(Dollars in thousands)	Banking		and Services		Company		Total
2013
Interest income	$	41,310	$	41	$	-	$	41,351
Interest expense		(6,475)		-		-		(6,475)
Provision for credit losses		(27,784)		-		-		(27,784)
Noninterest income		5,716		11,737		6		17,459
Noninterest expense		(23,676)		(10,350)		(6,660)		(40,686)
Net intersegment (expense) income		(5,359)		(655)		6,014		-
(Loss) income before income taxes		(16,268)		773		(640)		(16,135)
Income tax benefit (expense)		6,556		(313)		258		6,501
Net (loss) income	$	(9,712)	$	460	$	(382)	$	(9,634)
Total assets	$	1,036,098	$	15,759	$	2,267	$	1,054,124
2012
Interest income	$	45,822	$	79	$	-	$	45,901
Interest expense		(10,546)		-		(16)		(10,562)
Provision for credit losses		(27,745)		-		-		(27,745)
Noninterest income		5,197		10,422		139		15,758
Noninterest expense		(23,702)		(9,820)		(6,033)		(39,555)
Net intersegment (expense) income		(4,993)		(503)		5,496		-
(Loss) income before income taxes		(15,967)		178		(414)		(16,203)
Income tax benefit (expense)		6,467		(70)		168		6,565
Net (loss) income	$	(9,500)	$	108	$	(246)	$	(9,638)
Total assets	$	1,166,468	$	16,809	$	2,530	$	1,185,807
2011
Interest income	$	50,721	$	131	$	-	$	50,852
Interest expense		(11,051)		-		(37)		(11,088)
Provision for credit losses		(19,470)		-		-		(19,470)
Noninterest income		7,269		9,881		168		17,318
Noninterest expense		(22,738)		(10,766)		(5,663)		(39,167)
Net intersegment (expense) income		(5,148)		(455)		5,603		-
(Loss) income before income taxes		(417)		(1,209)		71		(1,555)
Income tax benefit (expense)		176		512		(30)		658
Net (loss) income	$	(241)	$	(697)	$	41	$	(897)
Total assets	$	1,138,576	$	17,354	$	2,263	$	1,158,193