Segment Information

12 Months Ended

Dec. 31, 2011

Note 22. Segment Information

The Company's segment information provided below focuses on its three primary lines of business (Segment(s)): Retail Banking, Commercial Banking and Treasury. The financial information presented was derived from the Company's internal profitability reporting system that is used by management to monitor and manage the financial performance of the Company. This information is based on internal management accounting policies which have been developed to reflect the underlying economics of the Segments and, to the extent practicable, to portray each Segment as if it operated on a stand-alone basis. Thus, each Segment, in addition to its direct revenues, expenses, assets and liabilities, includes an allocation of shared support function expenses and corporate overhead. All Segments also include funds transfer adjustments to appropriately reflect the cost of funds on loans made, funding credits on deposits generated, and the cost of maintaining adequate liquidity. Apart from these adjustments, the accounting policies used are similar to those described in Note 1.

Since there are no comprehensive standards for management accounting that are equivalent to accounting principles generally accepted in the United States of America, the information presented may not necessarily be comparable with similar information from other financial institutions. In addition, methodologies used to measure, assign, and allocate certain items may change from time-to-time to reflect, among other things, accounting estimate refinements, changes in risk profiles, changes in customers or product lines, and changes in management structure.

The Retail Banking Segment provides retail banking services including direct and indirect lending, checking, savings, money market and certificate of deposit (CD) accounts, safe deposit rental, automated teller machines and other traditional and electronic commerce retail banking services to individual customers through the Bank's branch locations. The Retail Banking Segment also provides a variety of mortgage lending products to meet customer needs. The majority of the mortgage loans it originates are sold to a third party mortgage services company, which provides private label loan processing and servicing support for both loans sold and loans retained by the Bank.

The Commercial Banking Segment provides commercial banking services including lending, business checking and deposits, treasury management and other traditional as well as electronic commerce commercial banking services to middle market and small business customers through the Bank's branch locations.

The Treasury segment is responsible for managing the investment portfolio, acquiring wholesale funding for loan activity and assisting in the management of the Company's liquidity and interest rate risk.


		Retail			Commercial			Treasury			Other			Total
		Segment			Segment			Segment			Operations			Company
2011
Net interest income (loss)	$	7,868		$	22,541		$	(2,009	)	$	(464	)	$	27,936
Other revenue		9,180			1,007			658			1,090			11,935
Other expense		10,851			9,225			179			17,309			37,564
Noncash items
Depreciation		1,057			1			-			783			1,841
Provision for loan losses		1,187			10,188			-			-			11,375
Other intangibles		1,029			-			-			-			1,029
Net allocations		5,568			10,548			1,350			(17,466	)		-
Income tax expense (benefit)		108			(1,414	)		(60	)		-			(1,366	)
Segment profit (loss)		(2,752	)		(5,000	)		(2,820	)		-			(10,572	)
Goodwill		-			-			-			-			-
Segment assets		165,914			470,095			250,648			81,327			967,984


		Retail			Commercial			Treasury			Other			Total
		Segment			Segment			Segment			Operations			Company
2010
Net interest income (loss)	$	5,150		$	25,331		$	2,123		$	(2,076	)	$	30,528
Other revenue		10,207			1,659			(2,320	)		1,272			10,818
Other expense		11,238			6,694			208			34,046			52,186
Noncash items
Depreciation		1,466			7			-			972			2,445
Provision for loan losses		866			33,734			-			-			34,600
Other intangibles		1,258			-			-			-			1,258
Net allocations		11,587			20,427			3,808			(35,822	)		-
Income tax expense (benefit)		2,280			13,368			1,012			-			16,660
Segment profit (loss)		(13,338	)		(47,240	)		(5,225	)		-			(65,803	)
Goodwill		-			-			-			-			-
Segment assets		191,422			576,189			217,977			119,574			1,105,162

		Retail			Commercial			Treasury			Other			Total
		Segment			Segment			Segment			Operations			Company
2009
Net interest income (loss)	$	9,080		$	27,972		$	5,421		$	(3,790	)	$	38,683
Other revenue		10,073			1,138			(12,355	)		1,855			711
Other expense		11,712			3,859			226			26,724			42,521
Noncash items
Depreciation		1,475			7			-			1,118			2,600
Provision for loan losses		615			51,434			-			-			52,049
Other intangibles		1,537			-			-			-			1,537
Net allocations		11,990			14,755			3,031			(29,776	)		-
Income tax expense		(2,729	)		(15,632	)		(2,873	)		-			(21,234	)
Segment profit (loss)		(5,448	)		(25,313	)		(7,318	)		-			(38,079	)
Goodwill		7,784			8,096			-			-			15,880
Segment assets		223,418			693,121			277,422			118,723			1,312,684

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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