Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information

Segment Information

NOTE  14.  SEGMENT INFORMATION

We operate two business segments:  community banking and insurance services.  These segments are primarily identified by the products or services offered.  The community banking segment consists of our full service banks which offer customers traditional banking products and services through various delivery channels.  The insurance services segment consists of three insurance agency offices that sell insurance products.  The accounting policies discussed throughout the notes to the consolidated financial statements apply to each of our business segments.

Intersegment revenue and expense consists of management fees allocated to the bank and Summit Insurance Services, LLC for all centralized functions that are performed by the parent, including overall direction in the areas of credit policy and administration, strategic planning, marketing, investment portfolio management and other financial and administrative services.  Information for each of our segments is included below:

	Six Months Ended June 30, 2011
	Community			Insurance
In thousands	Banking			Services			Parent			Eliminations			Total
Net interest income	$	21,167		$	-		$	(905	)	$	-		$	20,262
Provision for loan losses		6,000			-			-			-			6,000
Net interest income after provision for loan losses		15,167			-			(905	)		-			14,262
Other income		(2,193	)		2,456			1,606			(495	)		1,374
Other expenses		12,341			2,142			891			(495	)		14,879
Income (loss) before income taxes		633			314			(190	)		-			757
Income tax expense (benefit)		(33	)		126			7			-			100
Net income (loss)		666			188			(197	)		-			657
Dividends on preferred shares		-			-			148			-			148
Net income (loss) applicable to common shares	$	666		$	188		$	(345	)	$	-		$	509
Intersegment revenue (expense)	$	(438	)	$	(57	)	$	495		$	-		$	-
Average assets	$	1,539,586		$	6,751		$	140,502		$	(210,103	)	$	1,476,736

	Six Months Ended June 30, 2010
	Community			Insurance
In thousands	Banking			Services			Parent			Eliminations			Total
Net interest income	$	21,128		$	-		$	(961	)	$	-		$	20,167
Provision for loan losses		13,850			-			-			-			13,850
Net interest income after provision for loan losses		7,278			-			(961	)		-			6,317
Other income		1,733			2,430			872			(587	)		4,448
Other expenses		12,986			2,124			993			(587	)		15,516
Income (loss) before income taxes		(3,975	)		306			(1,082	)		-			(4,751	)
Income tax expense (benefit)		(1,587	)		118			(524	)		-			(1,993	)
Net income (loss)		(2,388	)		188			(558	)		-			(2,758	)
Dividends on preferred shares		-			-			148			-			148
Net income (loss) applicable to common shares	$	(2,388	)	$	188		$	(706	)	$	-		$	(2,906	)
Intersegment revenue (expense)	$	(530	)	$	(57	)	$	587		$	-		$	-
Average assets	$	1,571,215		$	7,012		$	142,459		$	(178,904	)	$	1,541,782

	Three Months Ended June 30, 2011
	Community			Insurance
In thousands	Banking			Services			Parent			Eliminations			Total
Net interest income	$	10,613		$	-		$	(454	)	$	-		$	10,159
Provision for loan losses		3,000			-			-			-			3,000
Net interest income after provision for loan losses		7,613			-			(454	)		-			7,159
Other income		767			1,219			247			(247	)		1,986
Other expenses		6,602			1,115			432			(247	)		7,902
Income (loss) before income taxes		1,778			104			(639	)		-			1,243
Income tax expense (benefit)		514			36			(212	)		-			338
Net income (loss)		1,264			68			(427	)		-			905
Dividends on preferred shares		-			-			74			-			74
Net income (loss) applicable to common shares	$	1,264		$	68		$	(501	)	$	-		$	831
Intersegment revenue (expense)	$	(219	)	$	(28	)	$	247		$	-		$	-
Average assets	$	1,543,308		$	6,822		$	140,714		$	(209,657	)	$	1,481,187

	Three Months Ended June 30, 2010
	Community			Insurance
In thousands	Banking			Services			Parent			Eliminations			Total
Net interest income	$	10,412		$	-		$	(476	)	$	-		$	9,936
Provision for loan losses		8,500			-			-			-			8,500
Net interest income after provision for loan losses		1,912			-			(476	)		-			1,436
Other income		384			1,211			334			(248	)		1,681
Other expenses		6,290			1,085			529			(248	)		7,656
Income (loss) before income taxes		(3,994	)		126			(671	)		-			(4,539	)
Income tax expense (benefit)		(1,356	)		50			(355	)		-			(1,661	)
Net income (loss)		(2,638	)		76			(316	)		-			(2,878	)
Dividends on preferred shares		-			-			74			-			74
Net income (loss) applicable to common shares	$	(2,638	)	$	76		$	(390	)	$	-		$	(2,952	)
Intersegment revenue (expense)	$	(219	)	$	(29	)	$	248		$	-		$	-
Average assets	$	1,569,927		$	7,127		$	141,383		$	(187,563	)	$	1,530,874