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 in Maryland, Delaware and the Eastern Shore of Virginia through its 21-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		Consolidated
(Dollars in thousands)	Banking		and Services		Company		Total
2017
Interest Income	$	47,721	$	-	$	80	$	47,801
Interest Expense		(2,273)		-		-		(2,273)
Provision for credit losses		(2,291)		-		-		(2,291)
Noninterest income		8,377		9,388		(15)		17,750
Noninterest expense		(25,570)		(7,517)		(8,115)		(41,202)
Net intersegment (expense) income		(6,973)		(677)		7,650		-
Income (loss) before taxes		18,991		1,194		(400)		19,785
Income tax (expense) benefit		(9,127)		466		138		(8,523)
Net Income (loss)	$	9,864	$	1,660	$	(262)	$	11,262

Total assets	$	1,376,777	$	11,063	$	6,020	$	1,393,860

2016
Interest Income	$	40,400	$	-	$	252	$	40,652
Interest Expense		(2,403)		-		-		(2,403)
Provision for credit losses		(1,848)		-		-		(1,848)
Noninterest income		7,935		8,710		-		16,645
Noninterest expense		(21,054)		(6,890)		(9,203)		(37,147)
Net intersegment (expense) income		(8,020)		(761)		8,781		-
Income (loss) before taxes		15,010		1,059		(170)		15,899
Income tax (expense) benefit		(5,887)		(432)		58		(6,261)
Net Income (loss)	$	9,123	$	627	$	(112)	$	9,638

Total assets	$	1,132,861	$	9,596	$	17,814	$	1,160,271

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		-
Income (loss) before taxes		11,168		532		(184)		11,516
Income tax (expense) benefit		(4,274)		(204)		70		(4,408)
Net Income (loss)	$	6,894	$	328	$	(114)	$	7,108

Total assets	$	1,107,367	$	9,984	$	17,792	$	1,135,143