Segment Reporting

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Reporting

NOTE 18, Segment Reporting

The Company operates in a decentralized fashion in three principal business segments: the Bank, the Trust, and the Parent. Revenues from the Bank's operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Trust's operating revenues consist principally of income from fiduciary activities. The Parent company's revenues are mainly interest and dividends received from the Bank and Trust companies. The Company has no other segments.

The Company'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 technologies and marketing strategies.

Information about reportable segments, and reconciliation of such information to the Consolidated Financial Statements as of and for the years ended December 31 follows:

2015	Bank			Trust		Unconsolidated Parent			Eliminations			Consolidated
	(in thousands)
Revenues
Interest and dividend income	$	30,242		$	54	$	4,009		$	(4,010	)	$	30,295
Income from fiduciary activities		0			3,617		0			0			3,617
Other income		8,548			1,032		200			(261	)		9,519
Total operating income		38,790			4,703		4,209			(4,271	)		43,431
Expenses
Interest expense		3,633			0		0			(1	)		3,632
Provision for loan losses		1,025			0		0			0			1,025
Salaries and employee benefits		17,630			2,685		432			0			20,747
Other expenses		13,254			1,010		336			(261	)		14,339
Total operating expenses		35,542			3,695		768			(262	)		39,743
Income before taxes		3,248			1,008		3,441			(4,009	)		3,688
Income tax expense (benefit)		(96	)		343		(193	)		0			54
Net income	$	3,344		$	665	$	3,634		$	(4,009	)	$	3,634
Capital expenditures	$	1,682		$	74	$	0		$	0		$	1,756
Total assets	$	891,877		$	5,694	$	93,191		$	(93,975	)	$	896,787

2014	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
	(in thousands)
Revenues
Interest and dividend income	$	30,239	$	50	$	4,349		$	(4,349	)	$	30,289
Income from fiduciary activities		0		3,506		0			0			3,506
Other income		8,283		916		200			(261	)		9,138
Total operating income		38,522		4,472		4,549			(4,610	)		42,933
Expenses
Interest expense		3,849		0		0			0			3,849
Provision for loan losses		600		0		0			0			600
Salaries and employee benefits		16,761		2,695		428			0			19,884
Other expenses		13,371		1,053		125			(261	)		14,288
Total operating expenses		34,581		3,748		553			(261	)		38,621
Income before taxes		3,941		724		3,996			(4,349	)		4,312
Income tax expense (benefit)		69		247		(120	)		0			196
Net income	$	3,872	$	477	$	4,116		$	(4,349	)	$	4,116
Capital expenditures	$	3,786	$	20	$	0		$	0		$	3,806
Total assets	$	871,691	$	5,513	$	88,497		$	(89,421	)	$	876,280

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

Both the Parent and the Trust companies maintain deposit accounts with the Bank, on terms substantially similar to those available to other customers. These transactions are eliminated to reach consolidated totals.

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