19. SEGMENT INFORMATION

As a result of the Cardinal acquisition in April 2017, United now operates in two business segments: community banking and mortgage banking. Prior to the Cardinal acquisition, United’s business activities were confined to just one reportable segment of community banking.

Through its community banking segment, United offers a full range of products and services through various delivery channels. In particular, the community banking segment includes both commercial and consumer lending and provides customers with such products as commercial loans, real estate loans, business financing and consumer loans. In addition, this segment provides customers with several choices of deposit products including demand deposit accounts, savings accounts and certificates of deposit as well as investment and financial advisory services to businesses and individuals, including financial planning, retirement/estate planning, and investment management. The mortgage banking segment engages primarily in the origination and acquisition of residential mortgages for sale into the secondary market though George Mason.

The community banking segment provides the mortgage banking segment (George Mason) with short-term funds to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest based on a LIBOR rate. In addition, the mortgage banking segment (George Mason) originates mortgage loans which are sold to the community banking segment for its loan portfolio. These intersegment transactions are eliminated in the consolidation process.

The Company does not have any operating segments other than those reported. The “Other” category consists of financial information not directly attributable to a specific segment, including interest income from investments and net securities gains or losses of parent companies and their non-banking subsidiaries, interest expense related to subordinated notes of unconsolidated subsidiaries as well as the elimination of non-segment related intercompany transactions such as management fees. The “Other” represents an overhead function rather than an operating segment.

Information about the reportable segments and reconciliation of this information to the consolidated financial statements at and for the three and six months ended June 30, 2018 and 2017 is as follows:


	At and For the Three Months Ended June 30, 2018
	Community Banking		Mortgage Banking		Other			Intersegment Eliminations			Consolidated
Net interest income	$	149,448	$	264	$	(3,032	)	$	2,442		$	149,122
Provision for loans losses		6,204		0		0			0			6,204
Other income		17,465		23,468		68			(4,994	)		36,007
Other expense		76,495		21,225		(1,758	)		(2,552	)		93,410
Income taxes		18,948		564		(271	)		0			19,241

Net income (loss)	$	65,266	$	1,943	$	(935	)	$	0		$	66,274

Total assets (liabilities)	$	19,112,133	$	388,292	$	10,895		$	(303,717	)	$	19,207,603
Average assets (liabilities)		18,658,168		335,781		6,776			(288,341	)		18,712,384


	At and For the Three Months Ended June 30, 2017
	Community Banking		Mortgage Banking			Other			Intersegment Eliminations			Consolidated
Net interest income	$	138,498	$	90		$	(2,343	)	$	0		$	136,245
Provision for loans losses		8,251		0			0			0			8,251
Other income		18,223		22,393			(110	)		0			40,506
Other expense		78,631		18,708			14,798			0			112,137
Income taxes		23,920		1,293			(5,909	)		0			19,304

Net income (loss)	$	45,919	$	2,482		$	(11,342	)	$	0		$	37,059

Total assets (liabilities)	$	18,984,921	$	382,086		$	(4,807	)	$	(326,600	)	$	19,035,600
Average assets (liabilities)		18,070,305		236,074			(20,180	)		(103,184	)		18,183,015

	At and For the Six Months Ended June 30, 2018
	Community Banking		Mortgage Banking			Other			Intersegment Eliminations			Consolidated
Net interest income	$	295,070	$	640		$	(5,626	)	$	3,081		$	293,165
Provision for loans losses		11,382		0			0			0			11,382
Other income		35,235		38,351			(754	)		(5,633	)		67,199
Other expense		148,986		39,609			(2,181	)		(2,552	)		183,862
Income taxes		38,224		(139	)		(945	)		0			37,140

Net income (loss)	$	131,713	$	(479	)	$	(3,254	)	$	0		$	127,980

Total assets (liabilities)	$	19,112,133	$	388,292		$	10,895		$	(303,717	)	$	19,207,603
Average assets (liabilities)		18,583,975		274,211			9,231			(238,796	)		18,628,621

	At and For the Six Months Ended June 30, 2017
	Community Banking		Mortgage Banking			Other			Intersegment Eliminations			Consolidated
Net interest income	$	248,158	$	90		$	(4,383	)	$	0		$	243,865
Provision for loans losses		14,150		0			0			0			14,150
Other income		35,036		22,393			3,223			0			60,652
Other expense		141,383		18,708			14,888			0			174,979
Income taxes		43,724		1,293			(5,497	)		0			39,520

Net income (loss)	$	83,937	$	2,482		$	(10,551	)	$	0		$	75,868

Total assets (liabilities)	$	18,984,921	$	382,086		$	(4,807	)	$	(326,600	)	$	19,035,600
Average assets (liabilities)		16,415,261		118,689			(24,551	)		(205,235	)		16,304,164