Segment Information

12 Months Ended

Dec. 31, 2016

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 as well as offering non-deposit investment products, such as annuities and mutual funds.  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.  All sources of segment specific revenues and expenses contributed 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, 2016, 2015, and 2014.

	2016
		Banking		Insurance Agency
		Activities		Activities		Total
		(in thousands)
Net interest income (expense)	$	35,371	$	(123)	$	35,248
Provision for loan losses		1,209		-		1,209
Net interest income (expense) after
provision for loan losses		34,162		(123)		34,039
Non-interest income		4,733		-		4,733
Insurance service and fees		400		6,119		6,519
Non-interest expense		30,438		4,658		35,096
Income before income taxes		8,857		1,338		10,195
Income tax provision		1,408		515		1,923
Net income	$	7,449	$	823	$	8,272

	2015
		Banking		Insurance Agency
		Activities		Activities		Total
		(in thousands)
Net interest income (expense)	$	31,921	$	(117)	$	31,804
Provision for loan losses		1,216		-		1,216
Net interest income (expense) after
provision for loan losses		30,705		(117)		30,588
Non-interest income		6,526		-		6,526
Insurance service and fees		672		6,522		7,194
Non-interest expense		28,103		4,595		32,698
Income before income taxes		9,800		1,810		11,610
Income tax provision		3,071		696		3,767
Net income	$	6,729	$	1,114	$	7,843

	2014
		Banking		Insurance Agency
		Activities		Activities		Total
		(in thousands)
Net interest income (expense)	$	31,214	$	(115)	$	31,099
Provision for loan losses		1,229		-		1,229
Net interest income (expense) after
provision for loan 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

	December 31,		December 31,
	2016		2015
	(in thousands)
Identifiable Assets, Net
Banking activities	$	1,091,291	$	929,998
Insurance agency activities		9,418		9,109
Consolidated Total Assets	$	1,100,709	$	939,107