SEGMENT INFORMATION

We operate three business segments: community banking, insurance services and trust and wealth management services. These segments are primarily identified by the products or services offered. The community banking segment consists of our full service banks which offer customers traditional banking products and services through various delivery channels. The insurance services segment includes two insurance agency offices that sell insurance products. The trust and wealth management segment includes Summit Community Bank's trust division and other non-bank investment products. The accounting policies discussed throughout the notes to the consolidated financial statements apply to each of our business segments.

Inter-segment revenue and expense consists of management fees allocated to the community banking, insurance services and trust and wealth management segments for all centralized functions that are performed by the parent, including overall direction in the areas of strategic planning, investment portfolio management, asset/liability management, financial reporting and other financial and administrative services. Information for each of our segments is included below:



	Three Months Ended June 30, 2018
Dollars in thousands	Community Banking			Trust and Wealth Management		Insurance Services			Parent			Eliminations			Total
Net interest income	$	17,495		$	—	$	—		$	(220	)	$	—		$	17,275
Provision for loan losses	750			—		—			—			—			750
Net interest income after provision for loan losses	16,745			—		—			(220		)	—			16,525
Other income	2,467			672		1,009			389			(389		)	4,148
Other expenses	10,922			484		953			765			(389		)	12,735
Income (loss) before income taxes	8,290			188		56			(596		)	—			7,938
Income tax expense (benefit)	1,717			45		16			(120		)	—			1,658
Net income (loss)	$	6,573		$	143	$	40		$	(476	)	$	—		$	6,280
Inter-segment revenue (expense)	$	(359	)	$	—	$	(30	)	$	389		$	—		$	—
Average assets	$	2,128,314		$	—	$	6,055		$	229,129		$	(252,067	)	$	2,111,431
Capital expenditures	$	917		$	—	$	1		$	76		$	—		$	994



	Three Months Ended June 30, 2017
Dollars in thousands	Community Banking			Trust and Wealth Management		Insurance Services			Parent			Eliminations			Total
Net interest income	$	18,017		$	—	$	—		$	(169	)	$	—		$	17,848
Provision for loan losses	250			—		—			—			—			250
Net interest income after provision for loan losses	17,767			—		—			(169		)	—			17,598
Other income	2,364			595		957			491			(491		)	3,916
Other expenses	12,441			529		807			650			(491		)	13,936
Income (loss) before income taxes	7,690			66		150			(328		)	—			7,578
Income tax expense (benefit)	2,336			25		58			(119		)	—			2,300
Net income (loss)	$	5,354		$	41	$	92		$	(209	)	$	—		$	5,278
Inter-segment revenue (expense)	$	(451	)	$	—	$	(40	)	$	491		$	—		$	—
Average assets	$	2,118,423		$	—	$	6,189		$	212,193		$	(242,486	)	$	2,094,319
Capital expenditures	$	1,057		$	—	$	32		$	92		$	—		$	1,181



	Six Months Ended June 30, 2018
Dollars in thousands	Community Banking			Trust and Wealth Management		Insurance Services			Parent			Eliminations			Total
Net interest income	$	34,944		$	—	$	—		$	(411	)	$	—		$	34,533
Provision for loan losses	1,250			—		—			—			—			1,250
Net interest income after provision for loan losses	33,694			—		—			(411		)	—			33,283
Other income	5,561			1,339		2,123			778			(778		)	9,023
Other expenses	21,575			1,009		1,849			1,394			(778		)	25,049
Income (loss) before income taxes	17,680			330		274			(1,027		)	—			17,257
Income tax expense (benefit)	3,574			79		67			(186		)	—			3,534
Net income (loss)	$	14,106		$	251	$	207		$	(841	)	$	—		$	13,723
Inter-segment revenue (expense)	$	(718	)	$	—	$	(60	)	$	778		$	—		$	—
Average assets	$	2,138,326		$	—	$	6,020		$	226,851		$	(250,165	)	$	2,121,032
Capital expenditures	$	2,767		$	—	$	13		$	86		$	—		$	2,866



	Six Months Ended June 30, 2017
Dollars in thousands	Community Banking			Trust and Wealth Management		Insurance Services			Parent			Eliminations			Total
Net interest income	$	31,812		$	—	$	—		$	(335	)	$	—		$	31,477
Provision for loan losses	500			—		—			—			—			500
Net interest income after provision for loan losses	31,312			—		—			(335		)	—			30,977
Other income	3,871			695		1,930			982			(982		)	6,496
Other expenses	30,508			673		1,681			1,073			(982		)	32,953
Income (loss) before income taxes	4,675			22		249			(426		)	—			4,520
Income tax expense (benefit)	903			9		98			(152		)	—			858
Net income (loss)	$	3,772		$	13	$	151		$	(274	)	$	—		$	3,662
Inter-segment revenue (expense)	$	(902	)	$	—	$	(80	)	$	982		$	—		$	—
Average assets	$	1,934,268		$	—	$	6,216		$	196,622		$	(224,803	)	$	1,912,303
Capital expenditures	$	4,049		$	—	$	35		$	91		$	—		$	4,175