Business Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Company has two reportable segments, including banking activities and mortgage banking activities.

During the second quarter of 2012, the Company changed its reporting of mortgage activities based on the reorganization of the Bank's mortgage division. This decision was made to improve overall reporting of its mortgage banking activities which are now analyzed and reviewed as a separate and distinct business segment. This change in reporting segment combined both mortgage activities of the Bank with mortgage activities that were previously reported separately from mortgage activities provided by Sidus. Reclassifications include interest income which was previously presented in other income, commission expenses recorded in salaries that are now recorded as a reduction in mortgage banking activity income, and other miscellaneous expenses previously recorded in other expenses that have been reclassified as a reduction to mortgage banking activity income. In addition, gains on sale of mortgage loans has been reclassified to be reported with mortgage banking income to provide a combined overview of the mortgage banking activity segment. The reclassifications had no effect on net income or shareholders' equity, as previously reported.

In the fourth quarter of 2012, a decision was made by management to sell a reinsurance subsidiary held by Sidus. As a result of this decision, Sidus reclassified its investment in the reinsurance subsidiary to held for sale and wrote down its investment by $1.0 million to the estimated fair value at December 31, 2012. The sale of the subsidiary closed in the first quarter of 2013. In addition, at the beginning of 2013, the Company dissolved the Sidus subsidiary and is no longer doing business as Sidus. This dissolution resulted in a $1.3 million reduction in reserves on mortgage loans sold in the first quarter of 2013. All mortgage banking activity beginning in 2013 is at the Bank.

The following table details the results of operations for the three and six months ended June 30, 2013 and 2012 for bank activities and mortgage activities.

	Bank Activities		Mortgage Activities		Other (1)			Total
	(Amounts in thousands)
For Three Months Ended June 30, 2013
Interest income	$	17,674	$	977	$	—		$	18,651
Interest expense	2,338		—		192			2,530
Net interest income	15,336		977		(192		)	16,121
Provision for loan losses	55		—		—			55
Net interest income (loss) after provision for loan losses	15,281		977		(192		)	16,066
Other income	3,597		2,546		41			6,184
Other expense	13,308		1,316		219			14,843
Income (loss) before income taxes	5,570		2,207		(370		)	7,407
Income taxes	2,598		—		—			2,598
Net income (loss)	$	2,972	$	2,207	$	(370	)	$	4,809
Total assets	$	1,702,027	$	97,770	$	2,118		$	1,801,915
Net loans	1,221,363		70,474		—			1,291,837
Loans held for sale	—		22,545		—			22,545
For Six Months Ended June 30, 2013
Interest income	$	35,054	$	1,872	$	—		$	36,926
Interest expense	5,369		—		384			5,753
Net interest income	29,685		1,872		(384		)	31,173
Provision for loan losses	292		—		—			292
Net interest income (loss) after provision for loan losses	29,393		1,872		(384		)	30,881
Other income	5,980		5,834		26			11,840
Other expense	25,113		2,719		225			28,057
Income (loss) before income taxes	10,260		4,987		(583		)	14,664
Income taxes	5,206		—		—			5,206
Net income (loss)	$	5,054	$	4,987	$	(583	)	$	9,458

(1) Included in this column are Holding Company assets and Holding Company income and expenses.

	Bank Activities			Mortgage Activities			Other (1)			Total
	(Amounts in thousands)
For Three Months Ended June 30, 2012
Interest income	$	19,592		$	152		$	—		$	19,744
Interest expense	4,362			15			209			4,586
Net interest income	15,230			137			(209		)	15,158
Provision for loan losses	2,242			(24		)	—			2,218
Net interest income (loss) after provision for loan losses	12,988			161			(209		)	12,940
Other income	2,726			1,674			6			4,406
Other expense	14,554			1,169			9			15,732
Income (loss) before income tax expense	1,160			666			(212		)	1,614
Income tax expense	(9,383		)	—			—			(9,383		)
Net income (loss)	$	10,543		$	666		$	(212	)	$	10,997
Balance Sheet Information as of December 31, 2012
Total assets	$	1,815,174		$	107,232		$	1,032		$	1,923,438
Net loans	1,211,589			72,766			—			1,284,355
Loans held for sale	—			27,679			—			27,679
For Six Months Ended June 30, 2012
Interest income	$	40,403		$	331		$	—		$	40,734
Interest expense	9,230			29			425			9,684
Net interest income	31,173			302			(425		)	31,050
Provision for loan losses	4,588			(19		)	—			4,569
Net interest income (loss) after provision for loan losses	26,585			321			(425		)	26,481
Other income	5,073			2,813			29			7,915
Other expense	27,191			2,106			13			29,310
Loss before income tax expense	4,467			1,028			(409		)	5,086
Income tax expense	(9,383		)	—			—			(9,383		)
Net loss	$	13,850		$	1,028		$	(409	)	$	14,469

(1) Included in this column are Holding Company assets and Holding Company income and expenses.