SEGMENT REPORTING

6 Months Ended

Jun. 30, 2011

SEGMENT REPORTING

NOTE 5 – SEGMENT REPORTING

The Corporation has two reportable segments: a traditional commercial banking segment and a mortgage banking segment. Revenues from commercial banking operations consist primarily of interest earned on loans and securities and fees from deposit services. Mortgage banking operating revenues consist principally of interest earned on mortgage loans held for sale, gains on sales of loans in the secondary mortgage market, and loan origination fee income.

The commercial banking segment provides the mortgage banking segment with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest based on the prime rate. These transactions are eliminated in the consolidation process.

Other includes the operations of the Corporation, Access Real Estate, and ACM. The primary source of income for the Corporation is derived from dividends from the Bank and its primary expense relates to interest on subordinated debentures.  The primary source of income for Access Real Estate is derived from rents received from the Bank and Mortgage Corporation.  ACM is in a start-up phase and its primary source of income is expected to be from fees.

The following table presents segment information for the three months ended June 30, 2011and 2010:

2011	Commercial		Mortgage									Consolidated
(In Thousands)	Banking		Banking			Other			Eliminations			Totals
Revenues:
Interest income	$	8,408	$	342		$	2		$	(224	)	$	8,528
Gain on sale of loans		-		7,383			-			-			7,383
Other revenues		1,956		(1,278	)		456			(416	)		718
Total revenues		10,364		6,447			458			(640	)		16,629
Expenses:
Interest expense		1,574		174			159			(225	)		1,682
Salaries and employee benefits		2,428		3,173			276			-			5,877
Other		2,236		2,352			751			(415	)		4,924
Total expenses		6,238		5,699			1,186			(640	)		12,483
Income (loss) before income taxes	$	4,126	$	748		$	(728	)	$	-		$	4,146
Total assets	$	696,532	$	59,838		$	10,692		$	(54,046	)	$	713,016

2010	Commercial		Mortgage									Consolidated
(In Thousands)	Banking		Banking			Other			Eliminations			Totals
Revenues:
Interest income	$	8,414	$	572		$	7		$	(335	)	$	8,658
Gain on sale of loans		84		8,314			-			-			8,398
Other revenues		795		(1,789	)		293			(420	)		(1,121	)
Total revenues		9,293		7,097			300			(755	)		15,935
Expenses:
Interest expense		2,564		281			160			(334	)		2,671
Salaries and employee benefits		1,992		3,256			116			-			5,364
Other		2,151		2,986			510			(421	)		5,226
Total expenses		6,707		6,523			786			(755	)		13,261
Income (loss) before income taxes	$	2,586	$	574		$	(486	)	$	-		$	2,674
Total assets	$	759,398	$	70,444		$	46,677		$	(85,949	)	$	790,570

The following table presents segment information for the six months ended June 30, 2011and 2010:

2011	Commercial		Mortgage									Consolidated
(In Thousands)	Banking		Banking			Other			Eliminations			Totals
Revenues:
Interest income	$	16,845	$	691		$	5		$	(443	)	$	17,098
Gain on sale of loans		286		12,613			-			-			12,899
Other revenues		2,627		(1,484	)		744			(846	)		1,041
Total revenues		19,758		11,820			749			(1,289	)		31,038
Expenses:
Interest expense		3,476		337			316			(444	)		3,685
Salaries and employee benefits		4,819		6,047			404			-			11,270
Other		3,989		3,977			1,264			(845	)		8,385
Total expenses		12,284		10,361			1,984			(1,289	)		23,340
Income (loss) before income taxes	$	7,474	$	1,459		$	(1,235	)	$	-		$	7,698
Total assets	$	696,532	$	59,838		$	10,692		$	(54,046	)	$	713,016

2010	Commercial		Mortgage									Consolidated
(In Thousands)	Banking		Banking			Other			Eliminations			Totals
Revenues:
Interest income	$	16,480	$	961		$	22		$	(546	)	$	16,917
Gain on sale of loans		84		13,554			-			-			13,638
Other revenues		1,189		(1,273	)		586			(840	)		(338	)
Total revenues		17,753		13,242			608			(1,386	)		30,217
Expenses:
Interest expense		5,152		419			320			(546	)		5,345
Salaries and employee benefits		4,369		6,131			116			-			10,616
Other		4,185		5,340			990			(840	)		9,675
Total expenses		13,706		11,890			1,426			(1,386	)		25,636
Income (loss) before income taxes	$	4,047	$	1,352		$	(818	)	$	-		$	4,581
Total assets	$	759,398	$	70,444		$	46,677		$	(85,949	)	$	790,570