Note (21)—Segment reporting:

The Company and the Bank are engaged in the business of banking and provide a full range of financial services. The Company determines reportable segments based on the significance of the segment’s operating results to the overall Company, the products and services offered, customer characteristics, processes and service delivery of the segments and the regular financial performance review and allocation of resources by the Chief Executive Officer (“CEO”), the Company’s chief operating decision maker. The Company has identified two distinct reportable segments—Banking and Mortgage. The Company’s primary segment is Banking, which provides a full range of deposit and lending products and services to corporate, commercial and consumer customers. The Company offers full-service conforming residential mortgage products, including conforming residential loans and services through the Mortgage segment utilizing mortgage offices outside of the geographic footprint of the Banking operations as well as internet delivery channels. Additionally, the Mortgage segment includes the servicing of residential mortgage loans and the packaging and securitization of loans to governmental agencies. The residential mortgage products and services originated in our Banking footprint and related revenues and expenses are included in our Banking segment. The Company’s mortgage division represents a distinct reportable segment which differs from the Company’s primary business of commercial and retail banking.

The financial performance of the Mortgage segment is assessed based on results of operations reflecting direct revenues and expenses and allocated expenses. This approach gives management a better indication of the operating performance of the segment. When assessing the Banking segment’s financial performance the CEO utilizes reports with indirect revenues and expenses including but not limited to the investment portfolio, electronic delivery channels and areas that primarily support the banking segment operations. Therefore these are included in the results of the Banking segment. Other indirect revenue and expenses related to general administrative areas are also included in the internal financial results reports of the Banking segment utilized by the CEO for analysis and are thus included for Banking segment reporting. The Mortgage segment utilizes funding sources from the Banking segment in order to fund mortgage loans that are ultimately sold on the secondary market. The Mortgage segment uses the proceeds from loan sales to repay obligations due to the Banking segment.

During the year ended December 31, 2016, the Company realigned its segment reporting structure to reclassify mortgage banking income and related expenses associated with retail mortgage originations within our Banking geographic footprint from the Mortgage segment to the Banking segment. This change was made to capture all of the product and service offerings for our Banking customer base within our banking geographic footprint into the Banking segment while capturing all of the mortgage banking activities outside of the banking footprint into the Mortgage segment to allow our CEO to better determine resource allocations and operating performance for each segment. As such, the tables below have been revised to reflect the reclassification for all periods presented.

The following tables provides segment financial information for the years ended December 31, 2017, 2016 and 2015 follows:

Year Ended December 31, 2017	Banking			Mortgage			Consolidated
Net interest income	$	153,018		$	253		$	153,271
Provision for loan loss		(950	)		—			(950	)
Mortgage banking income		26,737			93,620			120,357
Change in fair value of mortgage servicing rights⁽¹⁾		—			(3,424	)		(3,424	)
Other noninterest income		24,648			—			24,648
Depreciation		3,801			515			4,316
Amortization of intangibles		1,995			—			1,995
Loss on sale of mortgage servicing rights		—			249			249
Other noninterest mortgage banking expense		21,714			76,582			98,296
Other noninterest expense⁽²⁾		117,461			—			117,461
Income before income taxes		60,382			13,103			73,485
Income tax expense								21,087
Net income								52,398
Total assets	$	4,130,349		$	597,364		$	4,727,713
Goodwill		137,090			100			137,190
(1) Included in mortgage banking income.
(2) Included $19,034 in merger and conversion expenses related to the merger with the Clayton Banks.

Year Ended December 31, 2016	Banking			Mortgage			Consolidated
Net interest income	$	112,365		$	(1,415	)	$	110,950
Provision for loan loss		(1,479	)		—			(1,479	)
Mortgage banking income		25,542			92,209			117,751
Other noninterest income		26,934			—			26,934
Depreciation and amortization		3,506			489			3,995
Amortization of intangibles		2,132			—			2,132
Amortization and impairment of mortgage servicing rights		—			12,999			12,999
Loss on sale of mortgage servicing rights		—			4,447			4,447
Other noninterest mortgage banking expense		16,095			66,256			82,351
Other noninterest expense⁽¹⁾		88,866			—			88,866
Income before income taxes		55,721			6,603			62,324
Income tax expense								21,733
Net income								40,591
Total assets	$	2,752,773		$	524,108		$	3,276,881
Goodwill		46,767			100			46,867

(1)	Included $3,268 in merger and conversion expenses related to the acquisition of NWGB.

Year Ended December 31, 2015	Banking			Mortgage		Consolidated
Net interest income	$	92,366		$	1,506	$	93,872
Provision for loan loss		(3,070	)		6		(3,064	)
Mortgage banking income		18,718			51,472		70,190
Other noninterest income		22,190			—		22,190
Depreciation and amortization		2,933			350		3,283
Amortization of intangibles		1,731			—		1,731
Amortization and impairment of mortgage servicing rights		—			2,795		2,795
Other noninterest mortgage banking expense		13,189			42,949		56,138
Other noninterest expense⁽¹⁾		74,545			—		74,545
Income before income taxes		43,946			6,878		50,824
Income tax expense							2,968
Net income							47,856
Total assets	$	2,570,071		$	329,349	$	2,899,420
Goodwill		46,804			100		46,904

(1)	Included $3,543 in merger and conversion expenses related to the acquisition of NWGB.

Our Banking segment provides our Mortgage segment with a warehouse line of credit that is used to fund mortgage loans held for sale. The warehouse line of credit had a prime interest rate of 4.50%, 3.75% and 3.50% as of December 31, 2017, 2016 and 2015, respectively. The amount of interest paid by our Mortgage segment to our Banking segment under this warehouse line of credit is recorded as interest income to our Banking segment and as interest expense to our Mortgage segment, both of which are included in the calculation of net interest income for each segment. The amount of interest paid by our Mortgage segment to our Banking segment under this warehouse line of credit was $16,932, $12,636 and $8,688 for the December 31, 2017, 2016 and 2015, respectively.