SEGMENT REPORTING

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 27. 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
2015
Interest income	$	38,652	$	-	$	219	$	38,871
Interest expense		(3,346)		-		-		(3,346)
Provision for credit losses		(2,075)		-		-		(2,075)
Noninterest income		7,135		8,297		(16)		15,416
Noninterest expense		(21,480)		(6,984)		(8,886)		(37,350)
Net intersegment (expense) income		(7,718)		(781)		8,499		-
(Loss) income before income taxes		11,168		532		(184)		11,516
Income tax benefit (expense)		(4,274)		(204)		70		(4,408)
Net (loss) income	$	6,894	$	328	$	(114)	$	7,108
Total assets	$	1,107,367	$	9,984	$	17,792	$	1,135,143
2014
Interest income	$	38,202	$	-	$	87	$	38,289
Interest expense		(4,247)		-		-		(4,247)
Provision for credit losses		(3,350)		-		-		(3,350)
Noninterest income		6,482		10,305		(6)		16,781
Noninterest expense		(22,776)		(8,527)		(8,058)		(39,361)
Net intersegment (expense) income		(7,010)		(680)		7,690		-
(Loss) income before income taxes		7,301		1,098		(287)		8,112
Income tax benefit (expense)		(2,755)		(414)		108		(3,061)
Net (loss) income	$	4,546	$	684	$	(179)	$	5,051
Total assets	$	1,074,638	$	10,824	$	14,940	$	1,100,402
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