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Segment Reporting
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Reporting

19. SEGMENT REPORTING

 

The Corporation operations are divided into four reportable business segments: The Retail and Commercial Banking Services, Insurance Services, Wealth Strategies Services, and Financial Management Services. These operating segments have been identified primarily based on the Corporation’s organizational structure.

 

The Retail and Commercial Banking Services segment serves consumer and commercial customers by offering a variety of loan and deposit products, and other traditional banking services.

 

The Insurance Services segment offers clients a full spectrum of commercial and personal lines insurance products including life, health, property, and casualty insurance.

 

The Wealth Strategies Services segment provides personal trust administration, estate settlement, investment management, employee retirement benefit services, and the Individual Retirement Account (IRA) administration. Also, this segment offers full-service retail brokerage which includes the sale of retail investment products including stocks, bonds, mutual funds, and annuities.

 

The Financial Management Services segment is responsible for the management of the investment securities portfolio. It also is responsible for managing financial risks, including liquidity and interest rate risk.

 

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Corporation evaluates performance based on profit or loss from operations after income taxes not including nonrecurring gains or losses.

 

The Corporation’s reportable segments are strategic business units that offer different products and services. They are managed separately because each segment appeals to different markets and, accordingly, requires different technology and marketing strategies.

 

The Corporation allocates capital and funds used or funds provided for each reportable business segment. Also, each segment is credited or charged for the cost of funds provided or used. These credits and charges are reflected as net intersegment interest income (expense) in the table below. The Corporation does allocate income taxes to the segments. Other revenue represents noninterest income, exclusive of the net gain (loss) on disposition of assets and expenses associated with administrative activities which are not allocated to the segments. Those expenses include audit, compliance, investor relations, marketing, personnel, and other executive or parent company expenditures.

 

The Corporation does not have operating segments other than those reported. Parent Company and the Administrative Offices financial information is included in the “Other” category, and is deemed to represent an overhead function rather than an operating segment. The Administrative Offices include audit, marketing, information technology, personnel, and the executive office.

 

The Corporation does not have a single external customer from which it derives 10% or more of its revenue and operates in one geographical area.

 

Information about reportable business segments, and reconciliation of such information to the consolidated financial statements for the years ended December 31, 2015, 2014, and 2013, are as follows:

 

Segment Reporting

For the year ended December 31, 2015

 

    Retail and Commercial Banking   Insurance Services   Wealth Strategies   Financial Management   Inter-segment Elimination   Other   Totals
    (Dollars in thousands)
Net Interest Income (expense)                                                        
  external customers   $ 11,888       0       0       2,212       0       12     $ 14,112  
Net intersegment interest                                                        
  income (expense)     1,901       6       (5 )     (1,902 )     0       0       0  
Net Interest Income     13,789       6       (5 )     310       0       12       14,112  
                                                         
Provision for Loan Losses     141       0       0       0       0       0       141  
                                                         
Noninterest Income (expense)                                                        
  external customers     2,110       1,371       700       78       0       1       4,260  
Intersegment noninterest                                                        
  income (expense)     (6 )     6       35       0       (35 )     0       0  
Total Noninterest Income     2,104       1,377       735       78       (35 )     1       4,260  
                                                         
Noninterest Expenses:                                                        
Depreciation     767       31       23       66       0       75       962  
Amortization of intangibles     0       16       0       0       0       0       16  
Other Noninterest expenses     8,492       1,203       717       687       0       1,953       13,052  
Total Noninterest expenses     9,259       1,250       740       753       0       2,028       14,030  
                                                         
Pre-tax Income     6,493       133       (10 )     (365 )     (35 )     (2,015 )     4,201  
                                                         
Provision for Income Taxes     1,390       28       (10 )     (81 )     0       (500 )     827  
                                                         
Net Income   $ 5,103       105       0       (284 )     (35 )     (1,515 )   $ 3,374  
                                                         
Assets   $ 453,406       1,287       175       149,830       (190,875 )     1,032     $ 414,855  
                                                         
Expenditures for Fixed Assets   $ 353       14       0       4       0       0     $ 371  

 

       
Amounts included in the "Other" column are as follows:  
      Other    
Net interest Income:          
   Parent Company   $ 12    
Noninterest Income:          
   Executive office miscellaneous income     1    
Noninterest Expenses:          
   Parent Company corporate expenses     141    
   Executive office expenses not          
     allocated to segments     1,887    
Provison for Income taxes:          
   Parent Company income taxes (benefit)     (87 )  
   Executive office income taxes not          
     allocated to segments     (413 )  
Net Income:   $ (1,515 )  
           
Segment assets:          
    Parent Company assets, after          
      intercompany elimination   $ 1,032    

 

 

Segment Reporting

For the year ended December 31, 2014

 

    Retail and Commercial Banking   Insurance Services   Wealth Strategies   Financial Management   Inter-segment Elimination   Other   Totals
    (Dollars in thousands)
Net Interest Income (expense)                                                        
  external customers   $ 11,376       0       0       1,972       0       9     $ 13,357  
Net intersegment interest                                                        
  income (expense)     1,662       4       (5 )     (1,661 )     0       0       0  
Net Interest Income     13,038       4       (5 )     311       0       9       13,357  
                                                         
Provision for Loan Losses     330       0       0       0       0       0       330  
                                                         
Noninterest Income (expense)                                                        
  external customers     2,782       1,316       651       234       0       3       4,986  
Intersegment noninterest                                                        
  income (expense)     (4 )     4       35       0       (35 )     0       0  
Total Noninterest Income     2,778       1,320       686       234       (35 )     3       4,986  
                                                         
Noninterest Expenses:                                                        
Depreciation     698       31       21       66       0       75       891  
Amortization of intangibles     28       16       1       0       0       0       45  
Other Noninterest expenses     8,854       1,231       666       656       0       2,027       13,434  
Total Noninterest expenses     9,580       1,278       688       722       0       2,102       14,370  
                                                         
Pre-tax Income     5,906       46       (7 )     (177 )     (35 )     (2,090 )     3,643  
                                                         
Provision for Income Taxes     1,304       10       (10 )     (40 )     0       (525 )     739  
                                                         
Net Income   $ 4,602       36       3       (137 )     (35 )     (1,565 )   $ 2,904  
                                                         
Assets   $ 404,679       1,411       219       139,175       (171,855 )     651     $ 374,280  
                                                         
Expenditures for Fixed Assets   $ 2,162       28       1       121       0       0     $ 2,312  

 

       
Amounts included in the "Other" column are as follows:  
      Other    
Net interest Income:          
   Parent Company   $ 9    
Noninterest Income:          
   Executive office miscellaneous income     3    
Noninterest Expenses:          
   Parent Company corporate expenses     166    
   Executive office expenses not          
     allocated to segments     1,936    
Provison for Income taxes:          
   Parent Company income taxes (benefit)     (88 )  
   Executive office income taxes not          
     allocated to segments     (437 )  
Net Income:   $ (1,565 )  
           
Segment assets:          
    Parent Company assets, after          
      intercompany elimination   $ 651    

Segment Reporting

For the year ended December 31, 2013

 

    Retail and Commercial Banking   Insurance Services   Wealth Strategies   Financial Management   Inter-segment Elimination   Other   Totals
    (Dollars in thousands)
Net Interest Income (expense)                                                        
  external customers   $ 11,332       0       0       1,475       0       5     $ 12,812  
Net intersegment interest                                                        
  income (expense)     1,196       3       (4 )     (1,195 )     0       0       0  
Net Interest Income     12,528       3       (4 )     280       0       5       12,812  
                                                         
Provision for Loan Losses     420       0       0       0       0       0       420  
                                                         
Noninterest Income (expense)                                                        
  external customers     2,736       1,319       601       388       0       47       5,091  
Intersegment noninterest                                                        
  income (expense)     (3 )     3       13       0       (13 )     0       0  
Total Noninterest Income     2,733       1,322       614       388       (13 )     47       5,091  
                                                         
Noninterest Expenses:                                                        
Depreciation     674       30       24       57       0       113       898  
Amortization of intangibles     182       16       18       0       0       0       216  
Other Noninterest expenses     8,800       1,158       648       600       0       2,026       13,232  
Total Noninterest expenses     9,656       1,204       690       657       0       2,139       14,346  
                                                         
Pre-tax Income     5,185       121       (80 )     11       (13 )     (2,087 )     3,137  
                                                         
Provision for Income Taxes     592       17       104       1       0       (349 )     365  
                                                         
Net Income   $ 4,593       104       (184 )     10       (13 )     (1,738 )   $ 2,772  
                                                         
Assets   $ 394,034       1,256       262       140,877       (163,121 )     587     $ 373,895  
                                                         
Expenditures for Fixed Assets   $ 1,058       34       5       9       0       0     $ 1,106  

  

       
Amounts included in the "Other" column are as follows:  
      Other    
Net interest Income:          
   Parent Company   $ 5    
Noninterest Income:          
   Executive office miscellaneous income     17    
Noninterest Expenses:          
   Parent Company corporate expenses     144    
   Executive office expenses not          
     allocated to segments     1,995    
Provison for Income taxes:          
   Parent Company income taxes (benefit)     (66 )  
   Executive office income taxes not          
     allocated to segments     (283 )  
Net Income:   $ (1,768 )  
           
Segment assets:          
    Parent Company assets, after          
      intercompany elimination   $ 587