Segment Reporting

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Segment Reporting

Note 19—Segment Reporting

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. Additional information about the Company’s reportable segments is included in Cadence’s Annual Report on Form 10-K for the year ended December 31, 2018.

The Banking Segment includes the Commercial Banking, Retail Banking and Private Banking lines of business.

The Financial Services Segment includes the Trust, Retail Brokerage, and Investment Services businesses. In the second quarter of 2018, the Company sold its subsidiary, Town & Country Insurance Agency, Inc. All of the activities acquired in the merger with State Bank are part of the Banking segment.

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 three months ended March 31, 2019 and 2018:

	Three Months Ended March 31, 2019
(In thousands)	Banking		Financial Services			Corporate			Consolidated
Net interest income	$	174,396	$	(630	)	$	(4,477	)	$	169,289
Provision for credit losses		11,210		—			—			11,210
Noninterest income		20,087		10,285			292			30,664
Noninterest expense		97,324		7,652			8,464			113,440
Income tax expense (benefit)		19,862		373			(3,133	)		17,102
Net income	$	66,087	$	1,630			(9,516	)	$	58,201
Total assets	$	17,347,134	$	100,175		$	5,602		$	17,452,911

	Three Months Ended March 31, 2018
(In thousands)	Banking		Financial Services			Corporate			Consolidated
Net interest income	$	96,100	$	(607	)	$	(4,382	)	$	91,111
Provision for credit losses		4,380		—			—			4,380
Noninterest income		12,438		12,358			186			24,983
Noninterest expense		50,532		9,978			1,429			61,939
Income tax expense (benefit)		12,446		308			(1,804	)		10,950
Net income	$	41,181	$	1,465		$	(3,820	)	$	38,825
Total assets	$	10,903,031	$	91,468		$	4,883		$	10,999,382