Segment Information

The Company's operations are managed along two operating segments: Community Banking and Home Mortgage Lending. The Community Banking segment's principal business focus is the offering of loan and deposit products to business and consumer customers in its primary market areas. As of June 30, 2019, the Community Banking segment operated 16 branches throughout Alaska. The Home Mortgage Lending segment's principal business focus is the origination and sale of mortgage loans for 1-4 family residential properties.

Summarized financial information for the Company's reportable segments and the reconciliation to the consolidated financial results is shown in the following tables:



	Three Months Ended June 30, 2019
(In Thousands)	Community Banking		Home Mortgage Lending		Consolidated

Interest income		$16,758		$548		$17,306
Interest expense	1,125		224		1,349
Net interest income	15,633		324		15,957
Provision for loan losses	300		—		300
Other operating income	3,619		5,950		9,569
Other operating expense	14,111		5,708		19,819
Income before provision for income taxes	4,841		566		5,407
Provision for income taxes	984		162		1,146
Net income		$3,857		$404		$4,261



	Three Months Ended June 30, 2018
(In Thousands)	Community Banking			Home Mortgage Lending		Consolidated

Interest income		$15,057			$538		$15,595
Interest expense	443			163		606
Net interest income	14,614			375		14,989
Benefit for loan losses	(300		)	—		(300		)
Other operating income	2,836			5,478		8,314
Other operating expense	11,748			4,858		16,606
Income before provision for income taxes	6,002			995		6,997
Provision for income taxes	882			285		1,167
Net income		$5,120			$710		$5,830



	Six Months Ended June 30, 2019
(In Thousands)	Community Banking		Home Mortgage Lending		Consolidated

Interest income		$33,269		$915		$34,184
Interest expense	2,148		310		2,458
Net interest income	31,121		605		31,726
Provision for loan losses	1,050		—		1,050
Other operating income	6,854		10,248		17,102
Other operating expense	26,629		10,270		36,899
Income before provision for income taxes	10,296		583		10,879
Provision for income taxes	2,139		167		2,306
Net income		$8,157		$416		$8,573



	Six Months Ended June 30, 2018
(In Thousands)	Community Banking			Home Mortgage Lending		Consolidated

Interest income		$29,520			$870		$30,390
Interest expense	870			268		1,138
Net interest income	28,650			602		29,252
Benefit for loan losses	(300		)	—		(300		)
Other operating income	5,354			10,422		15,776
Other operating expense	24,115			9,286		33,401
Income before provision for income taxes	10,189			1,738		11,927
Provision for income taxes	1,541			494		2,035
Net income		$8,648			$1,244		$9,892



June 30, 2019
(In Thousands)	Community Banking		Home Mortgage Lending		Consolidated

Total assets		$1,458,014		$94,756		$1,552,770
Loans held for sale		$—		$61,531		$61,531



December 31, 2018
(In Thousands)	Community Banking		Home Mortgage Lending		Consolidated

Total assets		$1,443,745		$59,243		$1,502,988
Loans held for sale		$—		$34,710		$34,710