Segment Reporting

6 Months Ended

Jun. 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
June 30, 2019
Goodwill	$	48,536	$	17,526	$	—		$	66,062
Other intangible assets, net		150		9,322		—			9,472
Total assets		4,280,282		34,904		(1,241	)		4,313,945
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 June 30, 2019
Net interest income (expense)	$	33,082		$	—		$	(618	)	$	32,464
Provision for loan losses		(2,354	)		—			—			(2,354	)
Noninterest income		6,788			2,634			(189	)		9,233
Noninterest expense		(21,650	)		(2,831	)		(522	)		(25,003	)
Income (loss) before income taxes		15,866			(197	)		(1,329	)		14,340
Income tax (expense) benefit		(3,315	)		43			333			(2,939	)
Net income (loss)	$	12,551		$	(154	)	$	(996	)	$	11,401
Six months ended June 30, 2019
Net interest income (expense)	$	65,491		$	—		$	(1,235	)	$	64,256
Provision for loan losses		(3,547	)		—			—			(3,547	)
Noninterest income		13,054			5,660			(361	)		18,353
Noninterest expense		(43,103	)		(5,872	)		(1,199	)		(50,174	)
Income (loss) before income taxes		31,895			(212	)		(2,795	)		28,888
Income tax (expense) benefit		(6,659	)		43			650			(5,966	)
Net income (loss)	$	25,236		$	(169	)	$	(2,145	)	$	22,922

(15.)SEGMENT REPORTING (Continued)

	Banking			Non- Banking ⁽¹⁾			Holding Company and Other			Consolidated Totals
Three months ended June 30, 2018
Net interest income (expense)	$	30,851		$	—		$	(621	)	$	30,230
Provision for loan losses		(40	)		—			—			(40	)
Noninterest income		6,156			2,385			(134	)		8,407
Noninterest expense		(20,180	)		(2,150	)		(1,118	)		(23,448	)
Income (loss) before income taxes		16,787			235			(1,873	)		15,149
Income tax (expense) benefit		(3,504	)		(59	)		584			(2,979	)
Net income (loss)	$	13,283		$	176		$	(1,289	)	$	12,170
Six months ended June 30, 2018
Net interest income (expense)	$	61,168		$	—		$	(1,236	)	$	59,932
Provision for loan losses		(2,989	)		—			—			(2,989	)
Noninterest income		12,586			5,009			(281	)		17,314
Noninterest expense		(40,660	)		(4,815	)		(2,077	)		(47,552	)
Income (loss) before income taxes		30,105			194			(3,594	)		26,705
Income tax (expense) benefit		(6,136	)		(51	)		940			(5,247	)
Net income (loss)	$	23,969		$	143		$	(2,654	)	$	21,458

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