Segment Reporting

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Reporting

Note I – Segment Reporting

(In Thousands)

The operations of the Company’s reportable segments are described as follows:

• The Community Banks segment delivers a complete range of banking and financial services to individuals and small to medium-sized businesses including checking and savings accounts, business and personal loans, equipment leasing, as well as safe deposit and night depository facilities.

• The Insurance segment includes a full service insurance agency offering all lines of commercial and personal insurance through major carriers.

• The Wealth Management segment offers a broad range of fiduciary services which includes the administration and management of trust accounts including personal and corporate benefit accounts, self-directed IRA’s, and custodial accounts. In addition, the Wealth Management segment offers annuities, mutual funds and other investment services through a third party broker-dealer.

In order to give the Company’s divisional management a more precise indication of the income and expenses they can control, the results of operations for the Community Banks, the Insurance and the Wealth Management segments reflect the direct revenues and expenses of each respective segment. Indirect revenues and expenses, including but not limited to income from the Company’s investment portfolio, as well as certain costs associated with data processing and back office functions, primarily support the operations of the community banks and, therefore, are included in the results of the Community Banks segment. Included in “Other” are the operations of the holding company and other eliminations which are necessary for purposes of reconciling to the consolidated amounts.

In connection with the acquisition of American Trust, the Company recognized a gain on acquisition of $8,774 in the nine months ended September 30, 2011, which is included in “Noninterest income” for the Community Banks segment in the table below.

In connection with the acquisition of the RBC Bank (USA) trust division, the Company recognized a gain on acquisition of $570 in the three and nine months ended September 30, 2011, which is included in “Noninterest income” for the Wealth Management segment in the table below.

The following table provides financial information for our operating segments for the periods presented:

	Community Banks		Insurance		Wealth Management			Other			Consolidated
Three Months Ended September 30, 2012
Net interest income	$	33,444	$	23	$	314		$	(649	)	$	33,132
Provision for loan losses		4,659		—		(34	)		—			4,625
Noninterest income		15,387		887		1,720			20			18,014
Noninterest expense		36,001		786		1,661			183			38,631
Income before income taxes		8,171		124		407			(812	)		7,890
Income taxes		1,203		48		51			(449	)		853
Net income (loss)	$	6,968	$	76	$	356		$	(363	)	$	7,037
Total assets	$	4,105,716	$	10,725	$	35,172		$	12,993		$	4,164,606
Goodwill		182,076		2,783		—			—			184,859
Three Months Ended September 30, 2011
Net interest income	$	33,172	$	22	$	326		$	(609	)	$	32,911
Provision for loan losses		5,508		—		(8	)		—			5,500
Noninterest income		15,773		871		1,731			20			18,395
Noninterest expense		34,657		754		1,447			100			36,958
Income before income taxes		8,780		139		618			(689	)		8,848
Income taxes		2,345		54		180			(263	)		2,316
Net income (loss)	$	6,435	$	85	$	438		$	(426	)	$	6,532
Total assets	$	4,081,641	$	9,452	$	39,876		$	5,505		$	4,136,474
Goodwill		182,096		2,783		—			—			184,879
Nine Months Ended September 30, 2012
Net interest income	$	100,210	$	71	$	1,018		$	(1,914	)	$	99,385
Provision for loan losses		14,176		—		(51	)		—			14,125
Noninterest income		42,385		2,957		5,234			63			50,639
Noninterest expense		104,403		2,362		4,773			424			111,962
Income before income taxes		24,016		666		1,530			(2,275	)		23,937
Income taxes		4,990		258		340			(1,007	)		4,581
Net income (loss)	$	19,026	$	408	$	1,190		$	(1,268	)	$	19,356
Total assets	$	4,105,716	$	10,725	$	35,172		$	12,993		$	4,164,606
Goodwill		182,076		2,783		—			—			184,859
Nine Months Ended September 30, 2011
Net interest income	$	97,492	$	84	$	962		$	(1,825	)	$	96,713
Provision for loan losses		16,388		—		(38	)		—			16,350
Noninterest income		44,948		2,812		3,952			58			51,770
Noninterest expense		98,755		2,211		3,334			296			104,596
Income before income taxes		27,297		685		1,618			(2,063	)		27,537
Income taxes		7,731		266		487			(789	)		7,695
Net income (loss)	$	19,566	$	419	$	1,131		$	(1,274	)	$	19,842
Total assets	$	4,081,641	$	9,452	$	39,876		$	5,505		$	4,136,474
Goodwill		182,096		2,783		—			—			184,879