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

Interest income		$17,108			$729		$17,837
Interest expense	1,108			423		1,531
Net interest income	16,000			306		16,306
Benefit for loan losses	(2,075		)	—		(2,075		)
Other operating income	2,944			7,565		10,509
Other operating expense	13,126			6,198		19,324
Income before provision for income taxes	7,893			1,673		9,566
Provision for income taxes	1,550			478		2,028
Net income		$6,343			$1,195		$7,538



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

Interest income		$15,923		$657		$16,580
Interest expense	565		196		761
Net interest income	15,358		461		15,819
Provision for loan losses	—		—		—
Other operating income	2,770		5,903		8,673
Other operating expense	12,204		5,895		18,099
Income before provision for income taxes	5,924		469		6,393
Provision for income taxes	996		133		1,129
Net income		$4,928		$336		$5,264



	Nine Months Ended September 30, 2019
(In Thousands)	Community Banking			Home Mortgage Lending		Consolidated

Interest income		$50,377			$1,644		$52,021
Interest expense	3,256			733		3,989
Net interest income	47,121			911		48,032
Benefit for loan losses	(1,025		)	—		(1,025		)
Other operating income	9,798			17,813		27,611
Other operating expense	39,755			16,468		56,223
Income before provision for income taxes	18,189			2,256		20,445
Provision for income taxes	3,689			645		4,334
Net income		$14,500			$1,611		$16,111



	Nine Months Ended September 30, 2018
(In Thousands)	Community Banking			Home Mortgage Lending		Consolidated

Interest income		$45,443			$1,527		$46,970
Interest expense	1,435			464		1,899
Net interest income	44,008			1,063		45,071
Benefit for loan losses	(300		)	—		(300		)
Other operating income	8,124			16,325		24,449
Other operating expense	36,319			15,181		51,500
Income before provision for income taxes	16,113			2,207		18,320
Provision for income taxes	2,537			627		3,164
Net income		$13,576			$1,580		$15,156



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

Total assets		$1,499,700		$116,931		$1,616,631
Loans held for sale		$—		$81,942		$81,942



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