Segment Reporting

3 Months Ended

Mar. 31, 2012

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 three month periods ended March 31, 2012 and 2011, is as follows:

In thousands	Banking		Insurance		Intercompany Eliminations			Total
2012
Net interest income and other income from external customers	$	10,263	$	1,193	$	—		$	11,456
Income before income taxes	2,602		190		—			2,792
Total assets	1,010,248		11,712		(1,225		)	1,020,735
Capital expenditures	502		72		—			574
2011
Net interest income and other income from external customers	$	10,320	$	1,201	$	—		$	11,521
Income before income taxes	2,933		269		—			3,202
Total assets	965,843		11,846		(1,972		)	975,717
Capital expenditures	236		2		—			238

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.