17. Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Information

We operate two business segments:  community banking and an insurance agency.  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 agency 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 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:

	December 31, 2013
	Community			Insurance
Dollars in thousands	Banking			Services			Parent			Eliminations			Total
Net interest income	$	40,725		$	-		$	(1,922	)	$	-		$	38,803
Provision for loan losses		4,500			-			-			-			4,500
Net interest income after provision for loan losses		36,225			-			(1,922	)		-			34,303
Other income		6,666			4,543			1,087			(1,087	)		11,209
Other expenses		29,795			4,331			1,717			(1,087	)		34,756
Income (loss) before income taxes		13,096			212			(2,552	)		-			10,756
Income tax expense (benefit)		3,490			92			(894	)		-			2,688
Net income		9,606			120			(1,658	)		-			8,068
Dividends on preferred shares		-			-			775			-			775
Net income applicable to common shares	$	9,606		$	120		$	(2,433	)	$	-		$	7,293
Intersegment revenue (expense)	$	(979	)	$	(108	)	$	1,087		$	-		$	-
Average assets	$	1,431,131		$	6,176		$	157,249		$	(211,600	)	$	1,382,956

	December 31, 2012
	Community			Insurance
Dollars in thousands	Banking			Services			Parent			Eliminations			Total
Net interest income	$	41,600		$	-		$	(1,780	)	$	-		$	39,820
Provision for loan losses		8,500			-			-			-			8,500
Net interest income after provision for loan losses		33,100			-			(1,780	)		-			31,320
Other income		936			4,422			1,026			(1,044	)		5,340
Other expenses		25,146			3,965			1,661			(1,044	)		29,728
Income (loss) before income taxes		8,890			457			(2,415	)		-			6,932
Income tax expense (benefit)		1,868			184			(833	)		-			1,219
Net income		7,022			273			(1,582	)		-			5,713
Dividends on preferred shares		-			-			777			-			777
Net income applicable to common shares	$	7,022		$	273		$	(2,359	)	$	-		$	4,936
Intersegment revenue (expense)	$	(942	)	$	(102	)	$	1,044		$	-		$	-
Average assets	$	1,477,636		$	6,399		$	154,506		$	(217,440	)	$	1,421,101

	December 31, 2011
	Community			Insurance
Dollars in thousands	Banking			Services			Parent			Eliminations			Total
Net interest income	$	41,658		$	-		$	(1,814	)	$	-		$	39,844
Provision for loan losses		10,000			-			-			-			10,000
Net interest income after provision for loan losses		31,658			-			(1,814	)		-			29,844
Other income		(167	)		4,606			2,155			(1,044	)		5,550
Other expenses		25,472			4,216			1,641			(1,044	)		30,285
Income (loss) before income taxes		6,019			390			(1,300	)		-			5,109
Income tax expense (benefit)		1,304			158			(427	)		-			1,035
Net income		4,715			232			(873	)		-			4,074
Dividends on preferred shares		-			-			371			-			371
Net income applicable to common shares	$	4,715		$	232		$	(1,244	)	$	-		$	3,703
Intersegment revenue (expense)	$	(942	)	$	(102	)	$	1,044		$	-		$	-
Average assets	$	1,532,600		$	6,618		$	143,379		$	(212,803	)	$	1,469,794