Segment Reporting

6 Months Ended

Jun. 30, 2011

Segment Reporting

Segment Reporting

6.Segment Reporting

Russell Insurance Group, Inc. (RIG) is managed separately from the banking segment, which includes the Bank and related financial services that the Corporation offers.  RIG offers a broad range of property and casualty, life and health insurance to both commercial and individual clients.

Segment information for the six month periods ended June 30, 2011 and 2010, is as follows:

In thousands	Banking		Insurance		Intercompany Eliminations			Total
2011
Net interest income and other income from external customers	$	20,619	$	2,503	$	—		$	23,122
Income before income taxes	5,309		531		—			5,840
Total assets	988,022		11,850		(1,535		)	998,337
Capital expenditures	1,111		2		—			1,113
2010
Net interest income and other income from external customers	$	21,216	$	2,590	$	—		$	23,806
Income before income taxes	5,251		383		—			5,634
Total assets	968,704		12,630		(3,048		)	978,286
Capital expenditures	647		16		—			663

Segment information for the three month periods ended June 30, 2011 and 2010, is as follows:

In thousands	Banking		Insurance		Intercompany Eliminations			Total
2011
Net interest income and other income from external customers	$	10,299	$	1,302	$	—		$	11,601
Income before income taxes	2,376		262		—			2,638
Total assets	988,022		11,850		(1,535		)	998,337
Capital expenditures	875		—		—			875
2010
Net interest income and other income from external customers	$	10,961	$	1,407	$	—		$	12,368
Income before income taxes	2,288		239		—			2,527
Total assets	968,704		12,630		(3,048		)	978,286
Capital expenditures	209		6		—			215

Intangible assets, representing customer lists, are amortized over 10 years on a straight line basis.  Goodwill is not amortized, but rather is analyzed annually for impairment.  If certain events occur which might indicate goodwill has been impaired, the goodwill is tested for impairment when such events occur.  Amortization of goodwill and the intangible assets is deductible for tax purposes.