14. Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

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 strategic planning, investment portfolio management, asset/liability management, financial reporting and other financial and administrative services. Information for each of our segments is included below:

	Six Months Ended June 30, 2013
		Community			Insurance
In thousands		Banking			Services			Parent			Eliminations			Total
Net interest income	$	20,212		$	—		$	(950	)	$	—		$	19,262
Provision for loan losses		2,500			—			—			—			2,500
Net interest income after provision for loan losses		17,712			—			(950	)		—			16,762
Other income		112			2,352			544			(544	)		2,464
Other expenses		12,676			2,188			794			(544	)		15,114
Income (loss) before income taxes		5,148			164			(1,200	)		—			4,112
Income tax expense (benefit)		1,447			66			(411	)		—			1,102
Net income (loss)		3,701			98			(789	)		—			3,010
Dividends on preferred shares		—			—			388			—			388
Net income (loss) applicable to common shares	$	3,701		$	98		$	(1,177	)	$	—		$	2,622
Intersegment revenue (expense)	$	(490	)	$	(54	)	$	544		$	—		$	—
Average assets	$	1,442,999		$	6,304		$	156,502		$	(217,203	)	$	1,388,602

	Six Months Ended June 30, 2012
		Community			Insurance
In thousands		Banking			Services			Parent			Eliminations			Total
Net interest income	$	20,882		$	—		$	(893	)	$	—		$	19,989
Provision for loan losses		4,002			—			—			—			4,002
Net interest income after provision for loan losses		16,880			—			(893	)		—			15,987
Other income		228			2,322			503			(522	)		2,531
Other expenses		12,536			1,958			862			(522	)		14,834
Income (loss) before income taxes		4,572			364			(1,252	)		—			3,684
Income tax expense (benefit)		1,342			146			(415	)		—			1,073
Net income (loss)		3,230			218			(837	)		—			2,611
Dividends on preferred shares		—			—			388			—			388
Net income (loss) applicable to common shares	$	3,230		$	218		$	(1,225	)	$	—		$	2,223
Intersegment revenue (expense)	$	(471	)	$	(51	)	$	522		$	—		$	—
Average assets	$	1,496,527		$	6,453		$	153,426		$	(217,297	)	$	1,439,109

	Three Months Ended June 30, 2013
		Community			Insurance
In thousands		Banking			Services			Parent			Eliminations			Total
Net interest income	$	9,986		$	—		$	(482	)	$	—		$	9,504
Provision for loan losses		1,000			—			—			—			1,000
Net interest income after provision for loan losses		8,986			—			(482	)		—			8,504
Other income		(463	)		1,149			272			(272	)		686
Other expenses		6,377			1,067			349			(272	)		7,521
Income (loss) before income taxes		2,146			82			(559	)		—			1,669
Income tax expense (benefit)		622			31			(201	)		—			452
Net income (loss)		1,524			51			(358	)		—			1,217
Dividends on preferred shares		—			—			194			—			194
Net income (loss) applicable to common shares	$	1,524		$	51		$	(552	)	$	—		$	1,023
Intersegment revenue (expense)	$	(245	)	$	(27	)	$	272		$	—		$	—
Average assets	$	1,439,506		$	6,344		$	157,189		$	(217,703	)	$	1,385,336

	Three Months Ended June 30, 2012
		Community			Insurance
In thousands		Banking			Services			Parent			Eliminations			Total
Net interest income	$	10,416		$	—		$	(445	)	$	—		$	9,971
Provision for loan losses		2,001			—			—			—			2,001
Net interest income after provision for loan losses		8,415			—			(445	)		—			7,970
Other income		(300	)		1,146			243			(261	)		828
Other expenses		6,176			953			427			(261	)		7,295
Income (loss) before income taxes		1,939			193			(629	)		—			1,503
Income tax expense (benefit)		716			77			(203	)		—			590
Net income (loss)		1,223			116			(426	)		—			913
Dividends on preferred shares		—			—			194			—			194
Net income (loss) applicable to common shares	$	1,223		$	116		$	(620	)	$	—		$	719
Intersegment revenue (expense)	$	(236	)	$	(25	)	$	261		$	—		$	—
Average assets	$	1,490,039		$	6,538		$	153,986		$	(217,516	)	$	1,433,047