Segments

3 Months Ended

Mar. 31, 2014

Segments

Segments

(13) Segments

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

Financial information for each business segment reflects that which is specifically identifiable or allocated based on an internal allocation method. Income taxes are allocated based on the effective federal income tax rate adjusted for any tax exempt activity.  All tax exempt activity and provision for loan losses have been allocated to the commercial banking segment.  Measurement of performance of business segments is based on the management structure of Bancorp and is not necessarily comparable with similar information for any other financial institution. Information presented is also not necessarily indicative of the segments’ operations if they were independent entities.

Selected financial information by business segment for the three month periods ended March 31, 2014 and 2013 follows:

			Investment
	Commercial		management
(in thousands)	banking		and trust		Total
Three months ended March 31, 2014
Net interest income	$	20,181	$	47	$	20,228
Provision for loan losses	350		—		350
Investment management and trust services	—		4,568		4,568
All other non-interest income	4,890		17		4,907
Non-interest expense	14,962		2,582		17,544
Income before income taxes	9,759		2,050		11,809
Tax expense	2,903		729		3,632
Net income	$	6,856	$	1,321	$	8,177
Three months ended March 31, 2013
Net interest income	$	18,428	$	35	$	18,463
Provision for loan losses	2,325		—		2,325
Investment management and trust services	—		3,886		3,886
All other non-interest income	5,325		17		5,342
Non-interest expense	13,590		1,989		15,579
Income before income taxes	7,838		1,949		9,787
Tax expense	2,331		688		3,019
Net income	$	5,507	$	1,261	$	6,768