Segment Reporting

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Reporting

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 17-branch network and a loan production office in Delaware. 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 three months of 2017 and 2016.

	Community		Insurance Products		Parent		Consolidated
(Dollars in thousands)	Banking		and Services		Company		Total
2017
Interest Income	$	10,387	$	-	$	60	$	10,447
Interest Expense		(514)		-		-		(514)
Provision for credit losses		(427)		-		-		(427)
Noninterest income		1,883		2,924		-		4,807
Noninterest expense		(5,861)		(1,809)		(1,981)		(9,651)
Net intersegment (expense) income		(1,677)		(198)		1,875		-
Income (loss) before taxes		3,791		917		(46)		4,662
Income tax (expense) benefit		(1,513)		(367)		18		(1,862)
Net Income (loss)	$	2,278	$	550	$	(28)	$	2,800
Total assets	$	1,150,411	$	9,345	$	7,141	$	1,166,896
2016
Interest Income	$	9,846	$	-	$	62	$	9,908
Interest Expense		(665)		-		-		(665)
Provision for credit losses		(450)		-		-		(450)
Noninterest income		1,830		2,711		-		4,541
Noninterest expense		(5,297)		(1,709)		(2,333)		(9,339)
Net intersegment (expense) income		(1,936)		(172)		2,108		-
Income (loss) before taxes		3,328		830		(163)		3,995
Income tax (expense) benefit		(1,279)		(319)		63		(1,535)
Net Income (loss)	$	2,049	$	511	$	(100)	$	2,460
Total assets	$	1,103,842	$	9,133	$	18,200	$	1,131,175