The Company determines reportable segments based on the services offered, the significance of the services offered, the significance of those services to the Company’s financial condition and operating results and management’s regular review of the operating results of those services. The Company operates through three operating segments: Banking, Financial Services and Corporate.

The Banking Segment includes the Commercial Banking, Retail Banking and Private Banking lines of business. The Commercial Banking line of business includes a general business services component primarily focusing on commercial & industrial (C&I), community banking, business banking and commercial real estate lending to clients in the geographic footprint in Texas and the southeast United States. In addition, the Commercial Banking line of business includes within C&I a separate component that focuses on select industries (which is referred to as the “specialized industries”) in which the Company believes it has specialized experience and service capabilities, including energy, healthcare, restaurant industry, and technology. The Company serves clients in these specialized industries both within the geographic footprint and throughout the United States as a result of the national orientation of many of these businesses. The Retail Banking line of business offers a broad range of retail banking services including mortgage services through the branch network to serve the needs of consumer and small businesses in the geographic footprint. The Private Banking line of business offers banking services and loan products tailored to the needs of the high-net worth clients in the geographic footprint.

The Financial Services Segment includes the Trust, Retail Brokerage, Investment Services and Insurance businesses. These businesses offer products independently to their own customers as well as to Banking Segment clients. Investment Services operates through the “Linscomb & Williams” name and prior to sale of the insurance business, Insurance operated though the “Cadence Insurance” name. (See “Sale of Subsidiary” in Note 1). The products offered by the businesses in the Financial Services Segment primarily generate non-banking service fee income. The Corporate Segment reflects parent-only activities and intercompany eliminations.

Business segment results are determined based upon the management reporting system, which assigns balance sheet and income statement items to each of the business segments. The process is designed around the organizational and management structure and, accordingly, the results derived are not necessarily comparable with similar information published by other financial institutions or in accordance with generally accepted accounting principles.

The Company evaluates performance and allocates resources based on profit or loss from operations. There are no material inter-segment sales or transfers. The accounting policies used by each reportable segment are the same as those discussed in Note 1. All costs, except corporate administration and income taxes, have been allocated to the reportable segments. Therefore, combined amounts agree to the consolidated totals.

The following tables present the operating results of the segments as of and for the years ended December 31, 2018, 2017 and 2016:

	For the Year Ended December 31, 2018
(In thousands)	Banking		Financial Services			Corporate			Consolidated
Net interest income (expense)	$	407,674	$	(2,307	)	$	(17,626	)	$	387,741
Provision for credit losses		12,700		—			—			12,700
Noninterest income		47,316		46,805			517			94,638
Noninterest expense		215,574		35,679			7,048			258,301
Income tax expense (benefit)		52,464		3,979			(11,326	)		45,117
Net income (loss)	$	174,252	$	4,840		$	(12,831	)	$	166,261
Total assets	$	12,622,287	$	94,618		$	13,380		$	12,730,285

	For the Year Ended December 31, 2017
(In thousands)	Banking		Financial Services			Corporate			Consolidated
Net interest income (expense)	$	344,987	$	(1,347	)	$	(17,424	)	$	326,216
Provision for credit losses		9,735		—			—			9,735
Noninterest income		51,286		47,956			632			99,874
Noninterest expense		194,212		36,178			2,966			233,356
Income tax expense (benefit)		88,417		2,000			(9,771	)		80,646
Net income (loss)	$	103,909	$	8,431		$	(9,987	)	$	102,353
Total assets	$	10,854,206	$	90,639		$	4,081		$	10,948,926

	For the Year Ended December 31, 2016
(In thousands)	Banking		Financial Services			Corporate			Consolidated
Net interest income (expense)	$	297,701	$	(201	)	$	(18,061	)	$	279,439
Provision for credit losses		49,348		—			—			49,348
Noninterest income		45,499		42,727			177			88,403
Noninterest expense		186,874		32,334			972			220,180
Income tax expense (benefit)		37,442		3,567			(8,469	)		32,540
Net income (loss)	$	69,536	$	6,625		$	(10,387	)	$	65,774