Segment Reporting

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Reporting

NOTE 17, 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:

2012	Bank		Trust		Unconsolidated Parent			Eliminations			Consolidated
	(in thousands)
Revenues
Interest and dividend income	$	32,544	$	35	$	4,267		$	(4,266	)	$	32,580
Income from fiduciary activities		0		3,214		0			0			3,214
Other income		11,313		495		660			(723	)		11,745
Total operating income		43,857		3,744		4,927			(4,989	)		47,539
Expenses
Interest expense		5,775		0		6			(7	)		5,774
Provision for loan losses		2,400		0		0			0			2,400
Salaries and employee benefits		17,668		2,172		500			0			20,340
Other expenses		13,372		954		240			(723	)		13,843
Total operating expenses		39,215		3,126		746			(730	)		42,357
Income before taxes		4,642		618		4,181			(4,259	)		5,182
Income tax expense (benefit)		791		210		(6	)		0			995
Net income	$	3,851	$	408	$	4,187		$	(4,259	)	$	4,187
Total assets	$	903,454	$	5,257	$	89,300		$	(90,512	)	$	907,499

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

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 extended a line of credit to the Parent, which was primarily used to repurchase the Parent's publicly traded stock. Interest was charged at the Wall Street Journal Prime Rate minus 0.5%, with a floor of 5.0%. This loan was secured by a held-to-maturity security which matured in December of 2012. The Parent's loan was paid off in the same month. 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.