SEGMENT REPORTING

9 Months Ended

Sep. 30, 2014

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 10SEGMENT 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).

 

	Nine Months Ended September 30, 2014
	Core Banking		Wealth Management Group Services			Holding Company And Other			Consolidated Totals
Net interest income	$	36,525	$	-		$	9		$	36,534
Provision for loan losses		2,330		-			-			2,330
Net interest income after provision   for loan losses		34,195		-			9			34,204
Other operating income		8,930		5,816			610			15,356
Other operating expenses		35,836		8,199			650			44,685
Income (loss) before income tax expense		7,289		(2,383	)		(31	)		4,875
Income tax expense (benefit)		2,179		(916	)		(64	)		1,199
Segment net income (loss)	$	5,110	$	(1,467	)	$	33		$	3,676
Segment assets	$	1,515,658	$	6,332		$	1,567		$	1,523,557

	Nine Months Ended September 30, 2013
	Core Banking		Wealth Management Group Services		Holding Company And Other			Consolidated Totals
Net interest income	$	34,553	$	-	$	8		$	34,561
Provision for loan losses		1,755		-		-			1,755
Net interest income after provision   for loan losses		32,798		-		8			32,806
Other operating income		6,715		5,448		684			12,847
Other operating expenses		30,137		4,174		617			34,928
Income before income tax expense		9,376		1,274		75			10,725
Income tax expense (benefit)		2,995		490		(6	)		3,479
Segment net income	$	6,381	$	784	$	81		$	7,246
Segment assets	$	1,334,376	$	5,023	$	1,692		$	1,341,091

	Three Months Ended September 30, 2014
	Core Banking		Wealth Management Group Services			Holding Company And Other			Consolidated Totals
Net interest income	$	12,424	$	-		$	2		$	12,426
Provision for loan losses		589		-			-			589
Net interest income after provision   for loan losses		11,835		-			2			11,837
Other operating income		2,852		1,943			191			4,986
Other operating expenses		12,055		5,510			198			17,763
Income (loss) before income tax expense		2,632		(3,567	)		(5	)		(940	)
Income tax expense (benefit)		769		(1,371	)		(19	)		(621	)
Segment net income (loss)	$	1,863	$	(2,196	)	$	14		$	(319	)

	Three Months Ended September 30, 2013
	Core Banking		Wealth Management Group Services		Holding Company And Other			Consolidated Totals
Net interest income	$	11,515	$	-	$	2		$	11,517
Provision for loan losses		874		-		-			874
Net interest income after provision   for loan losses		10,641		-		2			10,643
Other operating income		2,402		1,813		136			4,351
Other operating expenses		10,276		1,371		166			11,813
Income (loss) before income tax expense		2,767		442		(28	)		3,181
Income tax expense (benefit)		860		170		(28	)		1,002
Segment net income	$	1,907	$	272	$	-		$	2,179