Segment Reporting

12 Months Ended

Dec. 31, 2011

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:

2011	Bank		Trust		Unconsolidated  Parent			Eliminations			Consolidated
	(in thousands)
Revenues
Interest and dividend income	$	36,207	$	41	$	3,633		$	(3,630	)	$	36,251
Income from fiduciary activities		0		3,002		0			0			3,002
Other income		8,942		314		300			(362	)		9,194
Total operating income		45,149		3,357		3,933			(3,992	)		48,447
Expenses
Interest expense		6,716		0		12			(13	)		6,715
Provision for loan losses		3,700		0		0			0			3,700
Salaries and employee benefits		16,574		2,044		521			0			19,139
Other expenses		13,755		906		241			(362	)		14,540
Total operating expenses		40,745		2,950		774			(375	)		44,094
Income before taxes		4,404		407		3,159			(3,617	)		4,353
Income tax expense (benefit)		1,056		138		(131	)		0			1,063
Net income	$	3,348	$	269	$	3,290		$	(3,617	)	$	3,290
Total assets	$	845,323	$	4,979	$	85,989		$	(86,787	)	$	849,504

2010	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
	(in thousands)
Revenues
Interest and dividend income	$	40,837	$	50	$	1,893		$	(1,890	)	$	40,890
Income from fiduciary activities		0		3,074		0			0			3,074
Other income		9,209		416		303			(360	)		9,568
Total operating income		50,046		3,540		2,196			(2,250	)		53,532
Expenses
Interest expense		9,990		0		12			(20	)		9,982
Provision for loan losses		8,800		0		0			0			8,800
Salaries and employee benefits		15,738		2,039		519			0			18,296
Other expenses		13,935		936		248			(361	)		14,758
Total operating expenses		48,463		2,975		779			(381	)		51,836
Income before taxes		1,583		565		1,417			(1,869	)		1,696
Income tax expense (benefit)		87		192		(130	)		0			149
Net income	$	1,496	$	373	$	1,547		$	(1,869	)	$	1,547
Total assets	$	882,415	$	4,980	$	81,196		$	(81,749	)	$	886,842

2009	Bank		Trust		Unconsolidated  Parent			Eliminations			Consolidated
	(in thousands)
Revenues
Interest and dividend income	$	41,607	$	77	$	2,026		$	(2,028	)	$	41,682
Income from fiduciary activities		0		2,987		0			0			2,987
Other income		9,310		373		300			(356	)		9,627
Total operating income		50,917		3,437		2,326			(2,384	)		54,296
Expenses
Interest expense		14,343		0		10			(30	)		14,323
Provision for loan losses		6,875		0		0			0			6,875
Salaries and employee benefits		15,229		2,025		527			0			17,781
Other expenses		12,669		872		239			(356	)		13,424
Total operating expenses		49,116		2,897		776			(386	)		52,403
Income before taxes		1,801		540		1,550			(1,998	)		1,893
Income tax expense (benefit)		159		184		(132	)		0			211
Net income	$	1,642	$	356	$	1,682		$	(1,998	)	$	1,682
Total assets	$	917,311	$	4,844	$	81,853		$	(82,586	)	$	921,422

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.

The Bank extends a line of credit to the Parent. This line of credit is primarily used to repurchase the Parent's publicly traded stock, but may, from time to time, be used for other purposes. Interest is charged at the Wall Street Journal Prime Rate minus 0.5%, with a floor of 5.0%. This loan is secured by a held-to-maturity security with a book value of $145 thousand and a market value of $148 thousand at December 31, 2011. 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.