Business Segment Information

6 Months Ended

Jun. 30, 2012

Business Segment Information

11. Business Segment Information

The Company has two reportable business segments, the commercial banking division and the mortgage banking division, which began operations in the second quarter of 2009. The commercial bank segment provides small and medium-size businesses, professional firms and individuals with a diversified range of products and services such as various types of deposit accounts, various types of commercial and consumer loans, cash management services, and online banking services. The mortgage banking segment originates and purchases residential mortgages that, for the most part, are resold within 30 days to long-term investors in the secondary residential mortgage market.

Since the Company derives all of its revenues from interest and noninterest income and interest expense is its most significant expense, these two segments are reported below using net interest income (interest income less interest expense) and noninterest income (primarily net gains on sales of loans held for sale and fee income) for the three and six months ended June 30, 2012 and 2011. The Company does not allocate general and administrative expenses or income taxes to the segments.

(Dollars in thousands)	Commercial		Mortgage		Other			Total
Net interest income for the three months ended June 30:
2012	$	7,228	$	1,033	$	(117	)	$	8,144
2011	$	8,360	$	344	$	(112	)	$	8,592
Net interest income for the six months ended June 30:
2012	$	14,696	$	1,689	$	(226	)	$	16,159
2011	$	16,842	$	576	$	(220	)	$	17,198
Noninterest income for the three months ended June 30:
2012	$	676	$	8,450	$	—		$	9,126
2011	$	529	$	1,329	$	—		$	1,858
Noninterest income for the six months ended June 30
2012	$	2,173	$	12,981	$	—		$	15,154
2011	$	995	$	2,221	$	—		$	3,216
Segment Assets at:
June 30, 2012	$	875,834	$	186,143	$	14,146		$	1,076,123
December 31, 2011	$	933,436	$	86,614	$	4,502		$	1,024,552