Note 8 - Business Segments

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 8: 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.”  Certain expenses of the Corporation are also included in “Other,” and consist primarily of interest expense associated with the Corporation’s trust preferred capital notes and other general corporate expenses.

	Three Months Ended June 30, 2013
(Dollars in thousands)	Retail Banking			Mortgage Banking		Consumer Finance		Other			Eliminations			Consolidated
Revenues:
Interest income	$	7,783		$	416	$	12,320	$	1		$	(1,290	)	$	19,230
Gains on sales of loans		—			3,577		—		—			—			3,577
Other noninterest income		1,689			1,086		276		335			—			3,386
Total operating income		9,472			5,079		12,596		336			(1,290	)		26,193
Expenses:
Interest expense		1,473			81		1,628		190			(1,290	)		2,082
Provision for loan losses		600			30		2,490		—			—			3,120
Salaries and employee benefits		4,067			2,009		1,944		209			—			8,229
Other noninterest expenses		3,228			1,315		1,060		716			—			6,319
Total operating expenses		9,368			3,435		7,122		1,115			(1,290	)		19,750
Income (loss) before income taxes		104			1,644		5,474		(779	)		—			6,443
Provision for (benefit from) income taxes		(395	)		658		2,135		(133	)		—			2,265
Net income (loss)	$	499		$	986	$	3,339	$	(646	)	$	—		$	4,178
Total assets	$	843,917		$	75,448	$	286,514	$	4,054		$	(217,252	)	$	992,681
Capital expenditures	$	527		$	30	$	22	$	—		$	—		$	579

	Three Months Ended June 30, 2012
(Dollars in thousands)	Retail Banking			Mortgage Banking		Consumer Finance		Other			Eliminations			Consolidated
Revenues:
Interest income	$	8,096		$	566	$	11,695	$	—		$	(1,259	)	$	19,098
Gains on sales of loans		—			1,631		—		—			—			1,631
Other noninterest income		1,464			979		234		336			(2	)		3,011
Total operating income		9,560			3,176		11,929		336			(1,261	)		23,740
Expenses:
Interest expense		1,920			113		1,574		248			(1,259	)		2,596
Provision for loan losses		750			30		2,080		—			—			2,860
Salaries and employee benefits		3,742			723		1,846		198			—			6,509
Other noninterest expenses		2,862			1,613		1,051		105			—			5,631
Total operating expenses		9,274			2,479		6,551		551			(1,259	)		17,596
Income (loss) before income taxes		286			697		5,378		(215	)		(2	)		6,144
Provision for (benefit from) income taxes		(332	)		278		2,098		(81	)		—			1,963
Net income (loss)	$	618		$	419	$	3,280	$	(134	)	$	(2	)	$	4,181
Total assets	$	791,327		$	91,025	$	265,995	$	2,974		$	(201,607	)	$	949,714
Capital expenditures	$	173		$	158	$	41	$	—		$	—		$	372

	Six Months Ended June 30, 2013
(Dollars in thousands)	Retail Banking			Mortgage Banking		Consumer Finance		Other			Eliminations			Consolidated
Revenues:
Interest income	$	15,599		$	843	$	24,492	$	1		$	(2,582	)	$	38,353
Gains on sales of loans		—			5,278		—		—			—			5,278
Other noninterest income		3,400			2,164		574		645			—			6,783
Total operating income		18,999			8,285		25,066		646			(2,582	)		50,414
Expenses:
Interest expense		3,017			173		3,244		378			(2,582	)		4,230
Provision for loan losses		1,000			60		5,240		—			—			6,300
Salaries and employee benefits		8,209			2,754		3,934		401			—			15,298
Other noninterest expenses		6,253			2,744		2,174		1,108			—			12,279
Total operating expenses		18,479			5,731		14,592		1,887			(2,582	)		38,107
Income (loss) before income taxes		520			2,554		10,474		(1,241	)		—			12,307
Provision for (benefit from) income taxes		(675	)		1,022		4,085		(309	)		—			4,123
Net income (loss)	$	1,195		$	1,532	$	6,389	$	(932	)	$	—		$	8,184
Total assets	$	843,917		$	75,448	$	286,514	$	4,054		$	(217,252	)	$	992,681
Capital expenditures	$	1,732		$	131	$	41	$	2		$	—		$	1,906

	Six Months Ended June 30, 2012
(Dollars in thousands)	Retail Banking			Mortgage Banking		Consumer Finance		Other			Eliminations			Consolidated
Revenues:
Interest income	$	16,163		$	1,140	$	23,034	$	—		$	(2,483	)	$	37,854
Gains on sales of loans		—			2,962		—		—			—			2,962
Other noninterest income		3,030			2,095		494		672			—			6,291
Total operating income		19,193			6,197		23,528		672			(2,483	)		47,107
Expenses:
Interest expense		4,078			219		3,124		497			(2,483	)		5,435
Provision for loan losses		1,500			105		3,980		—			—			5,585
Salaries and employee benefits		7,748			1,534		3,722		475			—			13,479
Other noninterest expenses		5,771			2,945		1,974		256			—			10,946
Total operating expenses		19,097			4,803		12,800		1,228			(2,483	)		35,445
Income (loss) before income taxes		96			1,394		10,728		(556	)		—			11,662
Provision for (benefit from) income taxes		(829	)		557		4,184		(211	)		—			3,701
Net income (loss)	$	925		$	837	$	6,544	$	(345	)	$	—		$	7,961
Total assets	$	791,327		$	91,025	$	265,995	$	2,974		$	(201,607	)	$	949,714
Capital expenditures	$	352		$	209	$	99	$	—		$	—		$	660

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 3.8 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.