NOTE 12. BUSINESS SEGMENTS

WesBanco operates two reportable segments: community banking and trust and investment services. WesBanco’s community banking segment offers services traditionally offered by full-service commercial banks, including commercial demand, individual demand and time deposit accounts, as well as commercial, mortgage and individual installment loans, and certain non-traditional offerings, such as insurance and securities brokerage services. The trust and investment services segment offers trust services as well as various alternative investment products including mutual funds. The market value of assets managed or held in custody by the trust and investment services segment was approximately $4.0 billion and $3.8 billion at June 30, 2018 and 2017, respectively. These assets are held by WesBanco in fiduciary or agency capacities for their customers and therefore are not included as assets on WesBanco’s Consolidated Balance Sheets.

Condensed financial information by business segment is presented below:


			Trust and
	Community		Investment
*(unaudited, in thousands)*	Banking		Services		Consolidated
For the Three Months ended June 30, 2018:
Interest and dividend income	$	98,888	$	—	$	98,888
Interest expense		16,541		—		16,541

Net interest income		82,347		—		82,347
Provision for credit losses		1,708		—		1,708

Net interest income after provision for credit losses		80,639		—		80,639
Non-interest income		17,656		5,752		23,408
Non-interest expense		60,026		3,517		63,543

Income before provision for income taxes		38,269		2,235		40,504
Provision for income taxes		6,865		470		7,335

Net income	$	31,404	$	1,765	$	33,169

For the Three Months ended June 30, 2017:
Interest and dividend income	$	82,160	$	—	$	82,160
Interest expense		10,021		—		10,021

Net interest income		72,139		—		72,139
Provision for credit losses		2,383		—		2,383

Net interest income after provision for credit losses		69,756		—		69,756
Non-interest income		16,550		5,572		22,122
Non-interest expense		52,754		3,130		55,884

Income before provision for income taxes		33,552		2,442		35,994
Provision for income taxes		8,676		977		9,653

Net income	$	24,876	$	1,465	$	26,341

For the Six Months ended June 30, 2018:
Interest and dividend income	$	185,203	$	—	$	185,203
Interest expense		29,667		—		29,667

Net interest income		155,536		—		155,536
Provision for credit losses		3,876		—		3,876

Net interest income after provision for credit losses		151,660		—		151,660
Non-interest income		35,236		12,255		47,491
Non-interest expense		110,920		7,194		118,114

Income before provision for income taxes		75,976		5,061		81,037
Provision for income taxes		13,276		1,063		14,339

Net income	$	62,700	$	3,998	$	66,698

For the Six Months ended June 30, 2017:
Interest and dividend income	$	162,084	$	—	$	162,084
Interest expense		19,226		—		19,226

Net interest income		142,858		—		142,858
Provision for credit losses		5,094		—		5,094

Net interest income after provision for credit losses		137,764		—		137,764
Non-interest income		33,290		11,716		45,006
Non-interest expense		103,746		6,522		110,268

Income before provision for income taxes		67,308		5,194		72,502
Provision for income taxes		18,196		2,078		20,274

Net income	$	49,112	$	3,116	$	52,228

Total non-fiduciary assets of the trust and investment services segment were $1.7 million and $1.6 million at June 30, 2018 and 2017, respectively. All other assets, including goodwill and other intangible assets, were allocated to the community banking segment.