Business Segments

12 Months Ended

Dec. 31, 2011

Business Segments [Abstract]

Business Segments

NOTE 17: Business Segments

The Corporation operates in a decentralized fashion in three principal business segments: Retail Banking, Mortgage Banking and Consumer Finance. Revenues from Retail Banking operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Mortgage Banking operating revenues consist principally of gains on sales of loans in the secondary market, loan origination fee income and interest earned on mortgage loans held for sale. Revenues from Consumer Finance consist primarily of interest earned on automobile retail installment sales contracts.

The Corporation's other segment includes an investment company that derives revenues from brokerage services, an insurance company that derives revenues from insurance services, and a title company that derives revenues from title insurance services. The results of the other segment are not significant to the Corporation as a whole and have been included in “Other.” Revenue and expenses of the Corporation are also included in “Other,” and consist primarily of dividends received on the Corporation's investment in equity securities and interest expense associated with the Corporation's trust preferred capital notes and other general corporate expenses.

	Year Ended December 31, 2011
(Dollars in thousands)	Retail Banking			Mortgage Banking		Consumer Finance		Other			Eliminations			Consolidated
Revenues:
Interest income	$	32,715		$	1,673	$	43,776	$	-		$	(4,374	)	$	73,790
Gains on sales of loans		-			16,094		-		-			-			16,094
Other noninterest income		5,957			2,931		855		1,209			-			10,952
Total operating income (loss)		38,672			20,698		44,631		1,209			(4,374	)		100,836
Expenses:
Provision for loan losses		6,000			360		7,800		-			-			14,160
Interest expense		9,154			256		5,833		1,014			(4,376	)		11,881
Salaries and employee benefits		14,722			12,044		6,712		839			-			34,317
Other noninterest expenses		12,026			5,747		3,560		434			-			21,767
Total operating expenses		41,902			18,407		23,905		2,287			(4,376	)		82,125
(Loss) income before income taxes		(3,230	)		2,291		20,726		(1,078	)		2			18,711
Income tax (benefit) expense		(2,798	)		960		8,116		(544	)		1			5,735
Net income (loss)	$	(432	)	$	1,331	$	12,610	$	(534	)	$	1		$	12,976
Total assets	$	772,552		$	82,312	$	249,671	$	3,262		$	(179,673	)	$	928,124
Goodwill	$	-		$	-	$	10,724	$	-		$	-		$	10,724
Capital expenditures	$	957		$	98	$	786	$	3		$	-		$	1,844

	Year Ended December 31, 2010
(Dollars in thousands)	Retail Banking			Mortgage Banking		Consumer Finance		Other			Eliminations			Consolidated
Revenues:
Interest income	$	33,922		$	2,210	$	37,382	$	184		$	(3,850	)	$	69,848
Gains on sales of loans		-			18,567		-		-			(3	)		18,564
Other noninterest income		6,093			3,265		689		1,089			-			11,136
Total operating income (loss)		40,015			24,042		38,071		1,273			(3,853	)		99,548
Expenses:
Provision for loan losses		6,500			34		8,425		-			-			14,959
Interest expense		10,452			365		5,278		1,031			(3,891	)		13,235
Salaries and employee benefits		14,661			13,448		6,062		717			1			34,889
Other noninterest expenses		13,112			8,892		2,893		509			-			25,406
Total operating expenses		44,725			22,739		22,658		2,257			(3,890	)		88,489
Income (loss) before income taxes		(4,710	)		1,303		15,413		(984	)		37			11,059
Income tax expense (benefit)		(3,216	)		521		6,011		(380	)		13			2,949
Net income (loss)	$	(1,494	)	$	782	$	9,402	$	(604	)	$	24		$	8,110
Total assets	$	756,250		$	78,550	$	224,233	$	2,840		$	(157,736	)	$	904,137
Goodwill	$	-		$	-	$	10,724	$	-		$	-		$	10,724
Capital expenditures	$	1,333		$	411	$	131	$	-		$	-		$	1,875

	Year Ended December 31, 2009
(Dollars in thousands)	Retail Banking			Mortgage Banking		Consumer Finance		Other			Eliminations			Consolidated
Revenues:
Interest income	$	34,021		$	2,471	$	31,590	$	259		$	(3,370	)	$	64,971
Gains on sales of loans		-			24,976		-		-			-			24,976
Other noninterest income		5,804			4,211		603		1,095			-			11,713
Total operating income (loss)		39,825			31,658		32,193		1,354			(3,370	)		101,660
Expenses:
Provision for loan losses		6,400			563		11,600		-			-			18,563
Interest expense		12,588			267		4,881		1,124			(3,401	)		15,459
Salaries and employee benefits		13,881			15,381		5,183		673			-			35,118
Other noninterest expenses		12,472			9,374		2,713		490			-			25,049
Total operating expenses		45,341			25,585		24,377		2,287			(3,401	)		94,189
Income (loss) before income taxes		(5,516	)		6,073		7,816		(933	)		31			7,471
Income tax expense (benefit)		(3,352	)		2,643		3,022		(379	)		11			1,945
Net income (loss)	$	(2,164	)	$	3,430	$	4,794	$	(554	)	$	20		$	5,526
Total assets	$	739,390		$	40,523	$	193,817	$	2,579		$	(87,879	)	$	888,430
Goodwill	$	-		$	-	$	10,724	$	-		$	-		$	10,724
Capital expenditures	$	155		$	252	$	66	$	1		$	-		$	474

The Retail Banking segment extends a warehouse line of credit to the Mortgage Banking segment, providing a portion of the funds needed to originate mortgage loans. The Retail Banking segment charges the Mortgage Banking segment interest at the daily FHLB advance rate plus 50 basis points. The Retail Banking segment also provides the Consumer Finance segment with a portion of the funds needed to originate loans by means of a variable rate line of credit that carries interest at one-month LIBOR plus 200 basis points and fixed rate loans that carry interest rates ranging from 5.4 percent to 8.0 percent. The Retail Banking segment acquires certain residential real estate loans from the Mortgage Banking segment at prices similar to those paid by third-party investors. These transactions are eliminated to reach consolidated totals. Certain corporate overhead costs incurred by the Retail Banking segment are not allocated to the Mortgage Banking, Consumer Finance and Other segments.