Segment Reporting

12 Months Ended

Dec. 31, 2019

(22.)

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 table presents information regarding the Company’s business segments as of the dates indicated (in thousands).

	Banking		Non-Banking		Holding Company and Other		Consolidated Totals
December 31, 2019
Goodwill	$	48,536	$	17,526	$	-	$	66,062
Other intangible assets, net		98		8,763		-		8,861
Total assets		4,346,615		36,733		830		4,384,178

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

(22.)

SEGMENT REPORTING (Continued)

The following table presents information regarding the Company’s business segments for the periods indicated (in thousands).

	Banking			Non- Banking ⁽¹⁾			Holding Company and Other			Consolidated Totals
Year ended December 31, 2019
Net interest income (expense)	$	132,383		$	-		$	(2,471	)	$	129,912
Provision for loan losses		(8,044	)		-			-			(8,044	)
Noninterest income		29,390			11,694			(703	)		40,381
Noninterest expense		(88,801	)		(11,899	)		(2,128	)		(102,828	)
Income (loss) before income taxes		64,928			(205	)		(5,302	)		59,421
Income tax (expense) benefit		(11,190	)		33			598			(10,559	)
Net income (loss)	$	53,738		$	(172	)	$	(4,704	)	$	48,862

Year ended December 31, 2018
Net interest income (expense)	$	125,334		$	-		$	(2,470	)	$	122,864
Provision for loan losses		(8,934	)		-			-			(8,934	)
Noninterest income		26,295			10,780			(597	)		36,478
Noninterest expense ⁽²⁾		(84,927	)		(12,663	)		(3,286	)		(100,876	)
Income (loss) before income taxes		57,768			(1,883	)		(6,353	)		49,532
Income tax (expense) benefit		(11,622	)		(129	)		1,745			(10,006	)
Net income (loss)	$	46,146		$	(2,012	)	$	(4,608	)	$	39,526

Year ended December 31, 2017
Net interest income (expense)	$	115,086		$	-		$	(2,471	)	$	112,615
Provision for loan losses		(13,361	)		-			-			(13,361	)
Noninterest income		24,921			9,172			637			34,730
Noninterest expense ⁽²⁾		(78,845	)		(9,264	)		(2,404	)		(90,513	)
Income (loss) before income taxes		47,801			(92	)		(4,238	)		43,471
Income tax (expense) benefit		(12,253	)		491			1,817			(9,945	)
Net income (loss)	$	35,548		$	399		$	(2,421	)	$	33,526

⁽¹⁾	Reflects activity from the acquisition of the assets of Robshaw & Julian since August 31, 2017 (the date of acquisition) and from HNP Capital since June 1, 2018 (the date of acquisition).

⁽²⁾	Non-Banking segment includes SDN reporting unit goodwill impairment of $2.4 and $1.6 million for the years ended December 31, 2018 and 2017, respectively.