BUSINESS SEGMENTS

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

BUSINESS SEGMENTS

5. BUSINESS SEGMENTS

The Corporation assesses its results among two operating segments, Banking and PGB Trust & Investments. Management uses certain methodologies to allocate income and expense to the business segments. A funds transfer pricing methodology is used to assign interest income and interest expense. Certain indirect expenses are allocated to segments. These include support unit expenses such as technology and operations and other support functions. Taxes are allocated to each segment based on the effective rate for the period shown.

Banking

The Banking segment includes commercial, commercial real estate, residential and consumer lending activities; deposit generation; operation of ATMs; telephone and internet banking services; merchant credit card services and customer support and sales.

PGB Trust & Investments

PGB Trust & Investments includes asset management services provided for individuals and institutions; personal trust services, including services as executor, trustee, administrator, custodian and guardian; corporate trust services including services as trustee for pension and profit sharing plans; and other financial planning and advisory services.

The following table presents the statements of income and total assets for the Corporation’s reportable segments for the three and six months ended June 30, 2013 and 2012.

	Three Months Ended June 30, 2013
			PGB Trust
(In thousands)	Banking		& Investments		Total
Net interest income	$	11,673	$	775	$	12,448
Noninterest income		1,536		3,700		5,236
Total income		13,209		4,475		17,684
Provision for loan losses		500		—		500
Salaries and benefits		6,699		1,236		7,935
Premises and equipment expense		2,193		145		2,338
Other noninterest expense		2,746		1,060		3,806
Total noninterest expense		12,138		2,441		14,579
Income before income tax expense		1,071		2,034		3,105
Income tax expense		350		746		1,096
Net income	$	721	$	1,288	$	2,009

	Three Months Ended June 30, 2012
			PGB Trust
(In thousands)	Banking		& Investments		Total
Net interest income	$	12,070	$	833	$	12,903
Noninterest income		1,351		3,320		4,671
Total income		13,421		4,153		17,574
Provision for loan losses		1,500		—		1,500
Salaries and benefits		5,060		1,348		6,408
Premises and equipment expense		2,263		150		2,413
Other noninterest expense		1,863		1,020		2,883
Total noninterest expense		10,686		2,518		13,204
Income before income tax expense		2,735		1,635		4,370
Income tax expense		1,030		617		1,647
Net income	$	1,705	$	1,018	$	2,723

	Six Months Ended June 30, 2013
			PGB Trust
(In thousands)	Banking		& Investments		Total
Net interest income	$	23,065	$	1,810	$	24,875
Noninterest income		3,624		7,216		10,840
Total income		26,689		9,026		35,715
Provision for loan losses		1,350		—		1,350
Salaries and benefits		12,489		2,525		15,014
Premises and equipment expense		4,350		292		4,642
Other noninterest expense		4,418		2,298		6,716
Total noninterest expense		22,607		5,115		27,722
Income before income tax expense		4,082		3,911		7,993
Income tax expense		1,579		1,512		3,091
Net income	$	2,503	$	2,399	$	4,902
Total assets for period end	$	1,678,270	$	1,320	$	1,679,590

	Six Months Ended June 30, 2012
			PGB Trust
(In thousands)	Banking		& Investments		Total
Net interest income	$	24,105	$	1,689	$	25,794
Noninterest income		2,826		6,568		9,394
Total income		26,931		8,257		35,188
Provision for loan losses		3,000		—		3,000
Salaries and benefits		9,935		2,586		12,521
Premises and equipment expense		4,455		289		4,744
Other noninterest expense		3,558		1,961		5,519
Total noninterest expense		20,948		4,836		25,784
Income before income tax expense		5,983		3,421		9,404
Income tax expense		2,289		1,309		3,598
Net income	$	3,694	$	2,112	$	5,806
Total assets for period end	$	1,577,237	$	1,368	$	1,578,605