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Segment reporting
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment reporting 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. 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 first quarter of 2019, the Company's Board of Directors approved management's strategic plan to exit its wholesale mortgage delivery channels. On June 7, 2019, the Company completed the sale of its third party origination ("TPO") channel and on August 1, 2019, the Company completed the sale of its correspondent channel. The Mortgage segment incurred $829 and $1,883 in restructuring charges, during the three and six months ended June 30, 2019, respectively, related to these sales. The restructuring charges include a one time charge of $100 in relief of goodwill associated with the TPO channel.
The following tables provide segment financial information for the three and six months ended June 30, 2020 and 2019 as follows:
Three Months Ended June 30, 2020BankingMortgageConsolidated
Net interest income$55,350  $(13) $55,337  
Provisions for credit losses(1)
25,921  —  25,921  
Mortgage banking income16,940  68,466  85,406  
Change in fair value of mortgage servicing rights, net of hedging(2)
—  (13,238) (13,238) 
Other noninterest income9,323  —  9,323  
Depreciation and amortization 1,503  116  1,619  
Amortization of intangibles1,205  —  1,205  
Other noninterest mortgage banking expense11,542  26,881  38,423  
Other noninterest expense(3)
39,332  —  39,332  
Income before income taxes$2,110  $28,218  $30,328  
Income tax expense7,455  
Net income22,873  
Total assets$6,751,881  $503,655  $7,255,536  
Goodwill175,441  —  175,441  
(1)Included $1,882 in provision for credit losses on unfunded commitments.
(2)Included in mortgage banking income in the Company's consolidated statement of income.
(3)Included $1,586 of merger costs in the Banking segment primarily related to the integration of Farmers National.
Three Months Ended June 30, 2019
Banking		Mortgage Consolidated
Net interest income$56,979  $44  $57,023  
Provision for credit losses881  —  881  
Mortgage banking income5,451  22,875  28,326  
Change in fair value of mortgage servicing rights, net of hedging(1)
—  (3,800) (3,800) 
Other noninterest income8,453  —  8,453  
Depreciation and amortization1,134  144  1,278  
Amortization of intangibles1,254  —  1,254  
Other noninterest mortgage banking expense4,172  17,691  21,863  
Other noninterest expense(2)
38,895  829  39,724  
Income before income taxes24,547  455  25,002  
Income tax expense6,314  
Net income18,688  
Total assets$5,552,893  $387,509  $5,940,402  
Goodwill168,486  —  168,486  
(1)Included in mortgage banking income in the Company's consolidated statement of income.
(2)Included $3,783 in merger costs in the Banking segment related to the Atlantic Capital branch acquisition and $829 in mortgage restructuring charges in the Mortgage segment.
Six Months Ended June 30, 2020BankingMortgageConsolidated
Net interest income$111,583  $3  $111,586  
Provision for credit losses(1)
55,486  —  55,486  
Mortgage banking income27,591  96,428  124,019  
Change in fair value of mortgage servicing rights, net of hedging(2)
—  (19,106) (19,106) 
Other noninterest income19,278  —  19,278  
Depreciation and amortization 2,995  236  3,231  
Amortization of intangibles2,408  —  2,408  
Other noninterest mortgage banking expense18,717  44,328  63,045  
Other noninterest expense(3)
80,454  —  80,454  
(Loss) income before income taxes$(1,608) $32,761  $31,153  
Income tax expense7,535  
Net income$23,618  
Total assets$6,751,881  $503,655  $7,255,536  
Goodwill175,441  —  175,441  
(1)Included $3,483 in provision for credit losses on unfunded commitments.
(2)Included in mortgage banking income in the Company's consolidated statement of income.
(3)Included $4,636 of merger costs in the Banking segment related to the Farmers National acquisition and the Franklin merger.

Six Months Ended June 30, 2019BankingMortgageConsolidated
Net interest income$109,972  $67  $110,039  
Provision for credit losses2,272  —  2,272  
Mortgage banking income9,837  41,391  51,228  
Change in fair value of mortgage servicing rights, net of hedging(1)
—  (5,681) (5,681) 
Other noninterest income16,471  —  16,471  
Depreciation and amortization2,176  274  2,450  
Amortization of intangibles1,983  —  1,983  
Other noninterest mortgage banking expense7,003  35,047  42,050  
Other noninterest expense(2)
70,854  1,883  72,737  
Income (loss) before income taxes$51,992  $(1,427) $50,565  
Income tax expense12,289  
Net income$38,276  
Total assets$5,552,893  $387,509  $5,940,402  
Goodwill168,486  —  168,486  
(1)Included in mortgage banking income in the Company's consolidated statement of income.
(2)Includes $4,404 in merger costs in the Banking segment related to the Atlantic Capital branch acquisition and $1,883 in mortgage restructuring charges in the Mortgage segment.
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, which is eliminated in consolidation, had a prime interest rate of 3.25% and 5.50% as of June 30, 2020 and 2019, respectively, and is limited based on interest income earned by the Mortgage segment. 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 $3,335 and $3,290 for the three months ended June 30, 2020 and 2019, respectively, and $5,710 and $5,848 for the six months ended June 30, 2020 and 2019, respectively.