Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

We operate two business segments:  community banking and insurance & financial 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 & 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:

	Nine Months Ended September 30, 2014
Dollars in thousands	Community Banking			Insurance & Financial Services			Parent			Eliminations			Total
Net interest income	$	32,812		$	—		$	(1,377	)	$	—		$	31,435
Provision for loan losses	2,250			—			—			—			2,250
Net interest income after provision for loan losses	30,562			—			(1,377		)	—			29,185
Other income	4,574			3,786			931			(890		)	8,401
Other expenses	22,694			3,152			1,257			(890		)	26,213
Income (loss) before income taxes	12,442			634			(1,703		)	—			11,373
Income tax expense (benefit)	3,507			210			(502		)	—			3,215
Net income (loss)	8,935			424			(1,201		)	—			8,158
Dividends on preferred shares	—			—			580			—			580
Net income (loss) applicable to common shares	$	8,935		$	424		$	(1,781	)	$	—		$	7,578
Inter-segment revenue (expense)	$	(802	)	$	(88	)	$	890		$	—		$	—
Average assets	$	1,462,070		$	6,119		$	162,904		$	(216,335	)	$	1,414,758

	Nine Months Ended September 30, 2013
Dollars in thousands	Community Banking			Insurance & Financial Services			Parent			Eliminations			Total
Net interest income	$	30,237		$	—		$	(1,436	)	$	—		$	28,801
Provision for loan losses	3,500			—			—			—			3,500
Net interest income after provision for loan losses	26,737			—			(1,436		)	—			25,301
Other income	4,646			3,668			815			(815		)	8,314
Other expenses	22,530			3,459			1,158			(815		)	26,332
Income (loss) before income taxes	8,853			209			(1,779		)	—			7,283
Income tax expense (benefit)	2,534			79			(612		)	—			2,001
Net income (loss)	6,319			130			(1,167		)	—			5,282
Dividends on preferred shares	—			—			582			—			582
Net income (loss) applicable to common shares	$	6,319		$	130		$	(1,749	)	$	—		$	4,700
Inter-segment revenue (expense)	$	(734	)	$	(81	)	$	815		$	—		$	—
Average assets	$	1,431,835		$	6,329		$	155,522		$	(213,202	)	$	1,380,484

	Three Months Ended September 30, 2014
Dollars in thousands	Community Banking			Insurance & Financial Services			Parent			Eliminations			Total
Net interest income	$	11,500		$	—		$	(424	)	$	—		$	11,076
Provision for loan losses	250			—			—			—			250
Net interest income after provision for loan losses	11,250			—			(424		)	—			10,826
Other income	1,674			1,198			341			(300		)	2,913
Other expenses	8,022			1,063			400			(300		)	9,185
Income (loss) before income taxes	4,902			135			(483		)	—			4,554
Income tax expense (benefit)	1,320			38			(140		)	—			1,218
Net income (loss)	3,582			97			(343		)	—			3,336
Dividends on preferred shares	—			—			193			—			193
Net income (loss) applicable to common shares	$	3,582		$	97		$	(536	)	$	—		$	3,143
Inter-segment revenue (expense)	$	(270	)	$	(30	)	$	300		$	—		$	—
Average assets	$	1,477,127		$	6,229		$	164,637		$	(214,953	)	$	1,433,040

	Three Months Ended September 30, 2013
Dollars in thousands	Community Banking			Insurance & Financial Services			Parent			Eliminations			Total
Net interest income	$	10,025		$	—		$	(487	)	$	—		$	9,538
Provision for loan losses	1,000			—			—			—			1,000
Net interest income after provision for loan losses	9,025			—			(487		)	—			8,538
Other income	1,705			1,158			272			(272		)	2,863
Other expenses	7,005			1,133			365			(272		)	8,231
Income (loss) before income taxes	3,725			25			(580		)	—			3,170
Income tax expense (benefit)	1,087			12			(201		)	—			898
Net income (loss)	2,638			13			(379		)	—			2,272
Dividends on preferred shares	—			—			194			—			194
Net income (loss) applicable to common shares	$	2,638		$	13		$	(573	)	$	—		$	2,078
Inter-segment revenue (expense)	$	(251	)	$	(21	)	$	272		$	—		$	—
Average assets	$	1,409,870		$	6,377		$	153,596		$	(205,332	)	$	1,364,511