Segment Reporting

9 Months Ended

Sep. 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 nine month periods ended September 30, 2011 and 2010, is as follows:

In thousands	Banking		Insurance		Intercompany Eliminations			Total
2011
Net interest income and other income from external customers	$	31,072	$	3,490	$	—		$	34,562
Income before income taxes	7,879		703		—			8,582
Total assets	1,014,216		12,638		(2,236		)	1,024,618
Capital expenditures	1,698		2		—			1,700
2010
Net interest income and other income from external customers	$	31,947	$	3,487	$	—		$	35,434
Income before income taxes	8,092		472		—			8,564
Total assets	982,840		11,939		(1,583		)	993,196
Capital expenditures	887		16		—			903

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

In thousands	Banking		Insurance		Intercompany Eliminations			Total
2011
Net interest income and other income from external customers	$	10,453	$	987	$	—		$	11,440
Income before income taxes	2,570		172		—			2,742
Total assets	1,014,216		12,638		(2,236		)	1,024,618
Capital expenditures	587		—		—			587
2010
Net interest income and other income from external customers	$	10,730	$	898	$	—		$	11,628
Income before income taxes	2,841		89		—			2,930
Total assets	982,840		11,939		(1,583		)	993,196
Capital expenditures	240		—		—			240

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.