15.	SEGMENT REPORTING

Under ASC Topic 280, Segment Reporting, certain information is disclosed for the two reportable operating segments of the Company: FUSB, ALC and all other (primarily FUSB Reinsurance). The reportable segments were determined using the internal management reporting system. These segments are composed of the Company’s and the Bank’s significant subsidiaries. The accounting policies for each segment are the same as those described in Note 2, “Summary of Significant Accounting Policies.” The segment results include certain overhead allocations and intercompany transactions that were recorded at current market prices. All intercompany transactions have been eliminated to determine the consolidated balances. The results for the two reportable segments of the Company are included in the following table:

 

		2013
		FUSB				ALC				All Other				Eliminations				Consolidated
		(Dollars in Thousands)
Total interest income		$	19,833			$	17,026			$	10			$	(3,233	)		$	33,636
Total interest expense			2,915				3,223				—				(3,233	)			2,905
Net interest income			16,918				13,803				10				—				30,731
Provision (reduction in reserve) for loan losses			(2,862	)			2,220				—				—				(642	)
Net interest income after provision (reduction in reserve)			19,780				11,583				10				—				31,373
Total non-interest income			3,553				1,387				812				(887	)			4,865
Total non-interest expense			20,464				10,303				922				(887	)			30,802
Income (loss) before income taxes			2,869				2,667				(100	)			—				5,436
Provision for income taxes			493				1,012				4				—				1,509
Net income (loss)		$	2,376			$	1,655				(104	)			—				3,927
Other significant items:
Total assets		$	559,159			$	71,572			$	76,236			$	(137,166	)		$	569,801
Total investment securities			170,724				—				80				—				170,804
Total loans, net			293,069				67,474				—				(59,616	)			300,927
Investment in subsidiaries			784				—				71,096				(71,875	)			5
Fixed asset additions			323				58				—				—				381
Depreciation and amortization expense			539				178				—				—				717
Total interest income from external customers			16,610				17,026				—				—				33,636
Total interest income from affiliates			3,223				—				10				(3,233	)			—

 

		2012
		FUSB				ALC				All Other				Eliminations				Consolidated
		(Dollars in Thousands)
Total interest income		$	24,109			$	18,503			$	19			$	(3,878	)		$	38,753
Total interest expense			4,575				3,859				—				(3,878	)			4,556
Net interest income			19,534				14,644				19				—				34,197
Provision for loan losses			1,294				3,044				—				—				4,338
Net interest income after provision			18,240				11,600				19				—				29,859
Total non-interest income			3,967				1,414				956				(772	)			5,565
Total non-interest expense			21,368				10,734				1,154				(772	)			32,484
Income (loss) before income taxes			839				2,280				(179	)			—				2,940
(Benefit from) provision for income taxes			(145	)			884				6				—				745
Net income (loss)		$	984			$	1,396			$	(185	)			—			$	2,195
Other significant items:
Total assets		$	557,374			$	79,090			$	74,958			$	(144,289	)		$	567,133
Total investment securities			113,670				—				80				—				113,750
Total loans, net			329,425				71,609				—				(63,634	)			337,400
Investment in subsidiaries			784				—				69,757				(70,536	)			5
Fixed asset additions			314				258				—				—				572
Depreciation and amortization expense			562				153				—				—				715
Total interest income from external customers			20,250				18,503				—				—				38,753
Total interest income from affiliates			3,858				—				19				(3,877	)			—