Segment Reporting

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting

NOTE 20: SEGMENT REPORTING

In 2014, 2013, and 2012 the Company had two reportable business segments: Banking (FFB) and Wealth Management (FFA). The results of FFI and any elimination entries are included in the column labeled Other. The reportable segments are determined by products and services offered and the corporate structure. Business segment earnings before taxes are the primary measure of the segment's performance as evaluated by management. Business segment earnings before taxes include direct revenue and expenses of the segment as well as corporate and inter-company cost allocations. Allocations of corporate expenses, such as finance and accounting, data processing and human resources, are calculated based on estimated activity or usage levels. The management accounting process measures the performance of the operating segments based on the Company's management structure and is not necessarily comparable with similar information for other financial services companies. If the management structures and/or the allocation process changes, allocations, transfers and assignments may change. The following tables show key operating results for each of our business segments used to arrive at our consolidated totals for the years ended December 31:

(dollars in thousands)	Banking		Wealth Management			Other			Total
2014:
Interest income	$	47,398	$	—		$	—		$	47,398
Interest expense		3,844		—			740			4,584
Net interest income		43,554		—			(740	)		42,814
Provision for loan losses		235		—			—			235
Noninterest income		5,866		19,422			(539	)		24,749
Noninterest expense		30,509		17,979			4,019			52,507
Income (loss) before taxes on income	$	18,676	$	1,443		$	(5,298	)	$	14,821
2013:
Interest income	$	39,181	$	—		$	—		$	39,181
Interest expense		3,288		—			219			3,507
Net interest income		35,893		—			(219	)		35,674
Provision for loan losses		2,395		—			—			2,395
Noninterest income		3,514		16,715			(405	)		19,824
Noninterest expense		24,302		17,400			1,920			43,622
Income (loss) before taxes on income	$	12,710	$	(685	)	$	(2,544	)	$	9,481
2012:
Interest income	$	30,874	$	—		$	—		$	30,874
Interest expense		3,145		—			—			3,145
Net interest income		27,729		—			—			27,729
Provision for loan losses		2,065		—			—			2,065
Noninterest income		2,599		14,250			(229	)		16,620
Noninterest expense		18,280		14,896			1,300			34,476
Income (loss) before taxes on income	$	9,983	$	(646	)	$	(1,529	)	$	7,808

The following tables show the financial position for each of our business segments, and of FFI which is included in the column labeled Other, and the eliminating entries used to arrive at our consolidated totals at December 31:

(dollars in thousands)	Banking		Wealth Management		Other			Eliminations			Total
2014:
Cash and cash equivalents	$	29,585	$	3,750	$	5,722		$	(9,365	)	$	29,692
Securities AFS		138,270		—		—			—			138,270
Loans, net		1,156,021		221		—			—			1,156,242
Premises and equipment		1,539		548		100			—			2,187
FHLB Stock		12,361		—		—			—			12,361
Deferred taxes		9,196		601		(49	)		—			9,748
REO		334		—		—			—			334
Other assets		4,827		500		113,499			(112,236	)		6,590
Total assets	$	1,352,133	$	5,620	$	119,272		$	(121,601	)	$	1,355,424
Deposits	$	972,319	$	—	$	—		$	(9,365	)	$	962,954
Borrowings		263,000		—		19,886			—			282,886
Intercompany balances		1,287		73		(1,360	)		—			—
Other liabilities		6,352		2,486		1,250			—			10,088
Shareholders’ equity		109,175		3,061		99,496			(112,236	)		99,496
Total liabilities and equity	$	1,352,133	$	5,620	$	119,272		$	(121,601	)	$	1,355,424
2013:
Cash and cash equivalents	$	56,795	$	2,134	$	5,294		$	(7,269	)	$	56,954
Securities AFS		59,111		—		—			—			59,111
Loans, net		893,364		366		—			—			893,730
Premises and equipment		2,286		863		100			—			3,249
FHLB Stock		6,721		—		—			—			6,721
Deferred taxes		11,426		865		(239	)		—			12,052
REO		375		—		—			—			375
Other assets		3,840		717		88,455			(87,844	)		5,168
Total assets	$	1,033,918	$	4,945	$	93,610		$	(95,113	)	$	1,037,360
Deposits	$	809,306	$	—	$	—		$	(7,269	)	$	802,037
Borrowings		134,000		—		7,063			—			141,063
Intercompany balances		857		248		(1,105	)		—			—
Other liabilities		4,018		2,590		890			—			7,498
Shareholders’ equity		85,737		2,107		86,762			(87,844	)		86,762
Total liabilities and equity	$	1,033,918	$	4,945	$	93,610		$	(95,113	)	$	1,037,360