Segment Reporting

At December 31, 2018, the Corporation has three reportable business segments: Banking, Wealth Management and Insurance. The Corporation determines the segments based primarily upon product and service offerings, through the types of income generated and the regulatory environment. This is strategically how the Corporation operates and has positioned itself in the marketplace. Accordingly, significant operating decisions are based upon analysis of each of these segments. The parent holding company and intercompany eliminations are included in the "Other" segment.

The Corporation's Banking segment consists of commercial, consumer and mortgage banking, as well as lease financing. The Wealth Management segment consists of investment advisory services, retirement plan services, trust, municipal pension services and broker/dealer services. The Insurance segment consists of commercial lines, personal lines, benefits and human resources consulting.

Each segment generates revenue from a variety of products and services it provides. Examples of products and services provided for each reportable segment are indicated as follows:



●	The Banking segment provides financial services to individuals, businesses, municipalities and nonprofit organizations. These services include a full range of banking services such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing.
●	The Wealth Management segment offers trust and investment advisory services, guardian and custodian of employee benefits and other trust and brokerage services, as well as a registered investment advisory managing private investment accounts for both individuals and institutions.
●	The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, group life and health coverage, employee benefit solutions, personal insurance lines and human resources consulting.

The following tables provide reportable segment-specific information and reconciliations to consolidated financial information for the years ended December 31, 2018, 2017 and 2016.



(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
For the Year Ended December 31, 2018
Interest income	$	190,425		$	32	$	—	$	31		$	190,488
Interest expense	27,383			—		—		5,043			32,426
Net interest income (expense)	163,042			32		—		(5,012		)	158,062
Provision for loan and lease losses	20,310			—		—		—			20,310
Noninterest income	20,815			23,179		16,442		(263		)	60,173
Intangible expenses	1,139			553		474		—			2,166
Restructuring charges	571			—		—		—			571
Other noninterest expense	106,947			14,845		12,419		291			134,502
Intersegment (revenue) expense*	(1,113		)	612		501		—			—
Income (expense) before income taxes	56,003			7,201		3,048		(5,566		)	60,686
Income tax expense (benefit)	9,085			1,913		752		(1,607		)	10,143
Net income (loss)	$	46,918		$	5,288	$	2,296	$	(3,959	)	$	50,543
Total assets	$	4,895,732		$	39,090	$	30,117	$	19,408		$	4,984,347
Capital expenditures	$	3,091		$	45	$	30	$	201		$	3,367

For the Year Ended December 31, 2017
Interest income	$	162,982		$	8	$	—	$	25		$	163,015
Interest expense	14,802			—		—		5,037			19,839
Net interest income (expense)	148,180			8		—		(5,012		)	143,176
Provision for loan and lease losses	9,892			—		—		—			9,892
Noninterest income	21,838			21,707		15,320		375			59,240
Intangible expenses	1,507			674		401		—			2,582
Other noninterest expense	100,670			13,732		11,667		2,062			128,131
Intersegment (revenue) expense*	(1,059		)	585		474		—			—
Income (expense) before income taxes	59,008			6,724		2,778		(6,699		)	61,811
Income tax expense (benefit)	15,735			2,597		374		(989		)	17,717
Net income (loss)	$	43,273		$	4,127	$	2,404	$	(5,710	)	$	44,094
Total assets	$	4,466,301		$	34,600	$	27,846	$	26,115		$	4,554,862
Capital expenditures	$	7,731		$	38	$	222	$	612		$	8,603


For the Year Ended December 31, 2016
Interest income	$	126,571		$	5	$	—	$	31		$	126,607
Interest expense	8,224			—		—		4,158			12,382
Net interest income (expense)	118,347			5		—		(4,127		)	114,225
Provision for loan and lease losses	4,821			—		—		—			4,821
Noninterest income	21,296			19,318		15,150		199			55,963
Intangible expenses	932			3,132		1,464		—			5,528
Acquisition-related and integration costs and restructuring charges	16,096			—		—		1,559			17,655
Other noninterest expense	88,065			12,980		11,924		5,829			118,798
Intersegment (revenue) expense*	(1,766		)	788		978		—			—
Income (expense) before income taxes	31,495			2,423		784		(11,316		)	23,386
Income tax expense (benefit)	6,510			857		348		(3,834		)	3,881
Net income (loss)	$	24,985		$	1,566	$	436	$	(7,482	)	$	19,505
Capital expenditures	$	9,944		$	29	$	30	$	1,660		$	11,663

*Includes an allocation of general and administrative expenses from both the parent holding company and the Bank. These expenses are generally allocated based upon number of employees and square footage utilized.