Segment Information

12 Months Ended

Dec. 31, 2014

Segment Information [Abstract]

Segment Information

18.SEGMENT INFORMATION

The Company is comprised of two primary business segments: banking activities and insurance agency activities.  The operating segments are separately managed and their performance is evaluated based on net income.  The banking business segment includes both commercial and consumer banking services, including a wide array of lending and depository services.  The banking business segment also includes direct financing leasing of commercial small-ticket general business equipment.  Origination of these leases has been discontinued, but the Company will continue to service the portfolio until maturity.  The insurance agency segment includes the activities of selling various premium-based insurance policies on a commission basis, including business and personal insurance, surety bonds, risk management, life, disability and long-term care coverage, as well as providing claims adjusting services to various insurance companies and offering non-deposit investment products, such as annuities and mutual funds.  All sources of segment specific revenues and expenses attributed to management’s definition of net income.  Revenues from transactions between the two segments are not significant.  The accounting policies of the segments are the same as those described in Note 1 of these “Notes to Consolidated Financial Statements.”

The following tables set forth information regarding these segments for the years ended December 31, 2014, 2013 and 2012.

	2014
		Banking		Insurance Agency
		Activities		Activities		Total
		(in thousands)
Net interest income (expense)	$	31,214	$	(115)	$	31,099
Provision for loan and lease losses		1,229		-		1,229
Net interest income (expense) after
provision for loan and lease losses		29,985		(115)		29,870
Non-interest income		3,142		-		3,142
Insurance service and fees		591		6,540		7,131
Amortization expense		-		108		108
Non-interest expense		26,875		4,269		31,144
Income before income taxes		6,843		2,048		8,891
Income tax provision (benefit)		(85)		789		704
Net income	$	6,928	$	1,259	$	8,187

	2013
		Banking		Insurance Agency
		Activities		Activities		Total
		(in thousands)
Net interest income (expense)	$	28,463	$	(116)	$	28,347
Provision for loan and lease losses		1,540		-		1,540
Net interest income (expense) after
provision for loan and lease losses		26,923		(116)		26,807
Non-interest income		4,950		-		4,950
Insurance service and fees		518		6,693		7,211
Amortization expense		-		221		221
Non-interest expense		24,792		4,367		29,159
Income before income taxes		7,599		1,989		9,588
Income tax provision		1,022		709		1,731
Net income	$	6,577	$	1,280	$	7,857

	2012
		Banking		Insurance Agency
		Activities		Activities		Total
		(in thousands)
Net interest income (expense)	$	27,904	$	(124)	$	27,780
Provision (benefit) for loan and lease losses		(68)		-		(68)
Net interest income (expense) after
provision for loan and lease losses		27,972		(124)		27,848
Non-interest income		5,857		-		5,857
Insurance service and fees		-		6,966		6,966
Amortization expense		-		349		349
Non-interest expense		23,861		4,582		28,443
Income before income taxes		9,968		1,911		11,879
Income tax provision		3,007		740		3,747
Net income	$	6,961	$	1,171	$	8,132

	December 31,		December 31,
	2014		2013
	(in thousands)
Identifiable Assets, Net
Banking activities	$	837,928	$	824,028
Insurance agency activities		8,881		9,470
Consolidated Total Assets	$	846,809	$	833,498