Segment Reporting

6 Months Ended

Jun. 30, 2019

At June 30, 2019, 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 below.



●	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 table provides total assets by reportable business segment as of the dates indicated.



(Dollars in thousands)	At June 30, 2019		At December 31, 2018		At June 30, 2018
Banking	$	5,059,733	$	4,895,732	$	4,656,201
Wealth Management	42,024		39,090		37,227
Insurance	32,256		30,117		29,295
Other	20,285		19,408		26,458
Consolidated assets	$	5,154,298	$	4,984,347	$	4,749,181

The following tables provide reportable segment-specific information and reconciliations to consolidated financial information for the three and six months ended June 30, 2019 and 2018.



	Three Months Ended
	June 30, 2019
(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
Interest income	$	54,041		$	11	$	—	$	8		$	54,060
Interest expense	10,164			—		—		1,261			11,425
Net interest income	43,877			11		—		(1,253		)	42,635
Provision for loan and lease losses	2,076			—		—		—			2,076
Noninterest income	6,014			6,155		4,145		42			16,356
Intangible expenses	233			105		79		—			417
Other noninterest expense	28,098			3,788		3,072		1,403			36,361
Intersegment (revenue) expense*	(295		)	161		134		—			—
Income (expense) before income taxes	19,779			2,112		860		(2,614		)	20,137
Income tax expense (benefit)	3,660			409		70		(470		)	3,669
Net income (loss)	$	16,119		$	1,703	$	790	$	(2,144	)	$	16,468
Capital expenditures	$	371		$	35	$	39	$	137		$	582



	Three Months Ended
	June 30, 2018
(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
Interest income	$	46,444		$	8	$	—	$	8		$	46,460
Interest expense	6,209			—		—		1,261			7,470
Net interest income	40,235			8		—		(1,253		)	38,990
Provision for loan and lease losses	15,409			—		—		—			15,409
Noninterest income	5,461			5,862		3,904		87			15,314
Intangible expenses	329			137		128		—			594
Other noninterest expense	26,723			3,628		3,093		309			33,753
Intersegment (revenue) expense*	(295		)	156		139		—			—
Income (expense) before income taxes	3,530			1,949		544		(1,475		)	4,548
Income tax (benefit) expense	(162		)	597		163		(407		)	191
Net income (loss)	$	3,692		$	1,352	$	381	$	(1,068	)	$	4,357
Capital expenditures	$	820		$	40	$	2	$	10		$	872



	Six Months Ended
	June 30, 2019
(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
Interest income	$	106,387		$	21	$	—	$	16		$	106,424
Interest expense	19,744			—		—		2,522			22,266
Net interest income	86,643			21		—		(2,506		)	84,158
Provision for loan and lease losses	4,761			—		—		—			4,761
Noninterest income	10,985			11,875		9,498		295			32,653
Intangible expenses	466			210		167		—			843
Other noninterest expense	55,877			7,582		6,198		1,835			71,492
Intersegment (revenue) expense*	(594		)	327		267		—			—
Income (expense) before income taxes	37,118			3,777		2,866		(4,046		)	39,715
Income tax expense (benefit)	6,780			723		263		(598		)	7,168
Net income (loss)	$	30,338		$	3,054	$	2,603	$	(3,448	)	$	32,547
Capital expenditures	$	1,136		$	74	$	64	$	158		$	1,432



	Six Months Ended
	June 30, 2018
(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
Interest income	$	89,966		$	13	$	—	$	15		$	89,994
Interest expense	11,210			—		—		2,522			13,732
Net interest income	78,756			13		—		(2,507		)	76,262
Provision for loan and lease losses	17,462			—		—		—			17,462
Noninterest income	10,250			11,602		8,990		54			30,896
Intangible expenses	658			279		269		—			1,206
Restructuring charges	571			—		—		—			571
Other noninterest expense	54,384			7,286		6,338		(313		)	67,695
Intersegment (revenue) expense*	(586		)	309		277		—			—
Income (expense) before income taxes	16,517			3,741		2,106		(2,140		)	20,224
Income tax expense (benefit)	1,836			1,142		619		(580		)	3,017
Net income (loss)	$	14,681		$	2,599	$	1,487	$	(1,560	)	$	17,207
Capital expenditures	$	1,790		$	89	$	9	$	65		$	1,953

*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.