14. Segment Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Information

NOTE 14. SEGMENT INFORMATION

We operate two business segments: community banking and insurance& financialservices. 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 & financial services segment includes 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.

Inter-segment revenue and expense consists of management fees allocated to the community banking and the insurance & financial services segments 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:

	Three Months Ended March 31, 2014
				Insurance &
	Community			Financial
In thousands	Banking			Services			Parent			Eliminations			Total
Net interest income	$	10,511		$	-		$	(473	)	$	-		$	10,038
Provision for loan losses		1,000			-			-			-			1,000
Net interest income after provision for loan losses		9,511			-			(473	)		-			9,038
Other income		1,410			1,373			293			(293	)		2,783
Other expenses		7,349			1,028			414			(293	)		8,498
Income (loss) before income taxes		3,572			345			(594	)		-			3,323
Income tax expense (benefit)		982			121			(169	)		-			934
Net income (loss)		2,590			224			(425	)		-			2,389
Dividends on preferred shares		-			-			193			-			193
Net income (loss) applicable to common shares	$	2,590		$	224		$	(618	)	$	-		$	2,196
Inter-segment revenue (expense)	$	(264	)	$	(29	)	$	293		$	-		$	-
Average assets	$	1,442,219		$	5,978		$	160,346		$	(216,040	)	$	1,392,503

	Three Months Ended March 31, 2013
				Insurance &
	Community			Financial
In thousands	Banking			Services			Parent			Eliminations			Total
Net interest income	$	10,226		$	-		$	(468	)	$	-		$	9,758
Provision for loan losses		1,500			-			-			-			1,500
Net interest income after provision for loan losses		8,726			-			(468	)		-			8,258
Other income		1,444			1,304			272			(272	)		2,748
Other expenses		7,193			1,197			444			(272	)		8,562
Income (loss) before income taxes		2,977			107			(640	)		-			2,444
Income tax expense (benefit)		825			36			(210	)		-			651
Net income (loss)		2,152			71			(430	)		-			1,793
Dividends on preferred shares		-			-			194			-			194
Net income (loss) applicable to common shares	$	2,152		$	71		$	(624	)	$	-		$	1,599
Inter-segment revenue (expense)	$	(245	)	$	(27	)	$	272		$	-		$	-
Average assets	$	1,446,533		$	6,264		$	155,808		$	(216,698	)	$	1,391,907