Segment Reporting

9 Months Ended

Sep. 30, 2019

(15.)SEGMENT REPORTING

The Company has two reportable segments: Banking and Non-Banking. These reportable segments have been identified and organized based on the nature of the underlying products and services applicable to each segment, the type of customers to whom those products and services are offered and the distribution channel through which those products and services are made available.

The Banking segment includes all of the Company’s retail and commercial banking operations. The Non-Banking segment includes the activities of SDN, a full-service insurance agency that provides a broad range of insurance services to both personal and business clients, and Courier Capital and HNP Capital, our investment advisor and wealth management firms that provide customized investment management, investment consulting and retirement plan services to individuals, businesses, institutions, foundations and retirement plans. Holding company amounts are the primary differences between segment amounts and consolidated totals and are reflected in the Holding Company and Other column below, along with amounts to eliminate balances and transactions between segments.

The following tables present information regarding our business segments as of and for the periods indicated (in thousands).

	Banking		Non- Banking		Holding Company and Other			Consolidated Totals
September 30, 2019
Goodwill	$	48,536	$	17,526	$	—		$	66,062
Other intangible assets, net		122		9,041		—			9,163
Total assets		4,299,353		35,904		(2,520	)		4,332,737
December 31, 2018
Goodwill	$	48,536	$	17,526	$	—		$	66,062
Other intangible assets, net		213		9,898		—			10,111
Total assets		4,272,439		35,975		3,284			4,311,698

	Banking			Non- Banking			Holding Company and Other			Consolidated Totals
Three months ended September 30, 2019
Net interest income (expense)	$	33,101		$	—		$	(618	)	$	32,483
Provision for loan losses		(1,844	)		—			—			(1,844	)
Noninterest income		9,398			3,149			(186	)		12,361
Noninterest expense		(22,153	)		(3,225	)		(508	)		(25,886	)
Income (loss) before income taxes		18,502			(76	)		(1,312	)		17,114
Income tax (expense) benefit		(4,034	)		16			(263	)		(4,281	)
Net income (loss)	$	14,468		$	(60	)	$	(1,575	)	$	12,833
Nine months ended September 30, 2019
Net interest income (expense)	$	98,592		$	—		$	(1,853	)	$	96,739
Provision for loan losses		(5,391	)		—			—			(5,391	)
Noninterest income		22,452			8,809			(547	)		30,714
Noninterest expense		(65,256	)		(9,097	)		(1,707	)		(76,060	)
Income (loss) before income taxes		50,397			(288	)		(4,107	)		46,002
Income tax (expense) benefit		(10,693	)		59			387			(10,247	)
Net income (loss)	$	39,704		$	(229	)	$	(3,720	)	$	35,755

(15.)SEGMENT REPORTING (Continued)

	Banking			Non- Banking ⁽¹⁾			Holding Company and Other			Consolidated Totals
Three months ended September 30, 2018
Net interest income (expense)	$	31,520		$	—		$	(617	)	$	30,903
Provision for loan losses		(2,061	)		—			—			(2,061	)
Noninterest income		6,867			3,118			(169	)		9,816
Noninterest expense		(22,050	)		(2,832	)		(639	)		(25,521	)
Income (loss) before income taxes		14,276			286			(1,425	)		13,137
Income tax (expense) benefit		(2,797	)		(76	)		313			(2,560	)
Net income (loss)	$	11,479		$	210		$	(1,112	)	$	10,577
Nine months ended September 30, 2018
Net interest income (expense)	$	92,688		$	—		$	(1,853	)	$	90,835
Provision for loan losses		(5,050	)		—			—			(5,050	)
Noninterest income		19,453			8,127			(450	)		27,130
Noninterest expense		(62,710	)		(7,647	)		(2,716	)		(73,073	)
Income (loss) before income taxes		44,381			480			(5,019	)		39,842
Income tax (expense) benefit		(8,933	)		(127	)		1,253			(7,807	)
Net income (loss)	$	35,448		$	353		$	(3,766	)	$	32,035

⁽¹⁾	Reflects activity from the acquisition of HNP Capital since June 1, 2018 (the date of acquisition).