SEGMENT REPORTING

3 Months Ended

Mar. 31, 2014

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 10                      SEGMENT REPORTING

The Corporation manages its operations through two primary business segments:  core banking and wealth management group services.  The core banking segment provides revenues by attracting deposits from the general public and using such funds to originate consumer, commercial, commercial real estate, and residential mortgage loans, primarily in the Corporation’s local markets and to invest in securities.  The wealth management group services segment provides revenues by providing trust and investment advisory services to clients.

Accounting policies for the segments are the same as those described in Note 1. Summarized financial information concerning the Corporation’s reportable segments and the reconciliation to the Corporation’s consolidated results are shown in the following table.  Income taxes are allocated based on the separate taxable income of each entity and indirect overhead expenses are allocated based on reasonable and equitable allocations applicable to the reportable segment.  Holding company amounts are the primary differences between segment amounts and consolidated totals, and are reflected in the Holding Company and Other column below, along with amounts to eliminate transactions between segments (dollars in thousands).

		Three Months Ended March 31, 2014
		Core Banking		Wealth Management Group Services		Holding Company And Other			Consolidated Totals
Net interest income	$	12,030	$	-	$	3		$	12,033
Provision for loan losses		639		-		-			639
Net interest income after provision   for loan losses		11,391		-		3			11,394
Other operating income		2,888		1,883		193			4,964
Other operating expenses		11,812		1,318		213			13,343
Income before income tax expense		2,467		565		(17	)		3,015
Income tax expense (benefit)		758		217		(24	)		951
Segment net income	$	1,709	$	348	$	7		$	2,064
Segment assets	$	1,490,857	$	4,878	$	1,796		$	1,497,531

		Three Months Ended March 31, 2013
		Core Banking		Wealth Management Group Services		Holding Company And Other		Consolidated Totals
Net interest income	$	11,715	$	-	$	2	$	11,717
Provision for loan losses		431		-		-		431
Net interest income after provision   for loan losses		11,284		-		2		11,286
Other operating income		1,995		1,750		277		4,022
Other operating expenses		9,931		1,534		260		11,725
Income before income tax expense		3,348		216		19		3,583
Income tax expense		1,081		83		7		1,171
Segment net income	$	2,267	$	133	$	12	$	2,412
Segment assets	$	1,272,340	$	5,118	$	2,514	$	1,279,972