Segment Reporting

9 Months Ended

Sep. 30, 2017

The Corporation has two reporting segments, the Bank and RIG. RIG is managed separately from the banking segment, which includes the Bank and related financial services that the Corporation offers through its banking subsidiary. 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, 2017 and 2016, is as follows:



In thousands	Banking		Insurance		Total
2017
Net interest income and other income from external customers	$	39,536	$	3,863	$	43,399
Income before income taxes	9,099		799		9,898
Total assets	1,598,331		9,304		1,607,635
Capital expenditures	1,087		—		1,087

2016
Net interest income and other income from external customers	$	33,871	$	3,335	$	37,206
Income before income taxes	10,424		681		11,105
Total assets	1,199,365		9,504		1,208,869
Capital expenditures	2,013		12		2,025

Segment information for the three month periods ended September 30, 2017 and 2016, is as follows:



In thousands	Banking		Insurance		Total
2017
Net interest income and other income from external customers	$	16,321	$	1,171	$	17,492
Income before income taxes	2,424		201		2,625
Total assets	1,598,331		9,304		1,607,635
Capital expenditures	284		—		284

2016
Net interest income and other income from external customers	$	11,581	$	905	$	12,486
Income before income taxes	3,485		221		3,706
Total assets	1,199,365		9,504		1,208,869
Capital expenditures	326		—		326

Customer lists intangible assets are amortized over 10 years on a straight line basis. Core deposit intangible assets are amortized over 10 years using the sum-of-years digits method. 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. Tax amortization of goodwill and the intangible assets is deductible for tax purposes. Tax amortization of the goodwill associated with the NW acquisition is not deductible for federal income tax purposes.