Segments

9 Months Ended

Sep. 30, 2011

Segments

Segments

(11) Segments

The Bank’s, and thus Bancorp’s, principal activities include commercial banking and investment management and trust.  Commercial banking provides a full range of loan and deposit products to individuals, consumers and businesses.  Commercial banking also includes the Bank’s mortgage banking and securities brokerage activity.  Investment management and trust provides wealth management services including investment management, trust and estate administration, retirement plan services and financial planning.

The financial information for each business segment reflects that which is specifically identifiable or allocated based on an internal allocation method.  Principally, all of the net assets of Bancorp are involved in the commercial banking segment.  Income taxes are allocated to the investment management and trust segment based on the marginal federal tax rate since all activity giving rise to the difference between marginal and effective tax rates occurs in the commercial banking segment.  The measurement of the performance of the business segments is based on the management structure of the Bank and is not necessarily comparable with similar information for any other financial institution.  The information presented is also not indicative of the segments’ operations, if they were independent entities.

Selected financial information by business segment for the three and nine month periods ended September 30, 2011 and 2010 follows:

			Investment
	Commercial		management
(In thousands)	banking		and trust		Total
Three months ended September 30, 2011
Net interest income	$	17,751	$	39	$	17,790
Provision for loan losses	4,100		—		4,100
Investment management and trust services	—		3,347		3,347
All other non-interest income	4,507		4		4,511
Non-interest expense	11,401		1,901		13,302
Income before income taxes	6,757		1,489		8,246
Tax expense	1,951		521		2,472
Net income	$	4,806	$	968	$	5,774
Three months ended September 30, 2010
Net interest income	$	17,187	$	27	$	17,214
Provision for loan losses	2,695		—		2,695
Non-interest income	5,217		3,045		8,262
Non-interest expense	12,207		1,702		13,909
Income before income taxes	7,502		1,370		8,872
Tax expense	2,028		479		2,507
Net income	$	5,474	$	891	$	6,365
Nine months ended September 30, 2011
Net interest income	$	52,614	$	102	$	52,716
Provision for loan losses	9,500		—		9,500
Investment management and trust services	—		10,545		10,545
All other non-interest income	13,466		4		13,470
Non-interest expense	37,099		5,755		42,854
Income before income taxes	19,481		4,896		24,377
Tax expense	5,401		1,714		7,115
Net income	$	14,080	$	3,182	$	17,262
Nine months ended September 30, 2010
Net interest income	$	49,471	$	84	$	49,555
Provision for loan losses	7,774		—		7,774
Non-interest income	14,623		9,538		24,161
Non-interest expense	36,603		5,445		42,048
Income before income taxes	19,717		4,177		23,894
Tax expense	5,530		1,462		6,992
Net income	$	14,187	$	2,715	$	16,902