19. SEGMENT INFORMATION

As a result of the Cardinal acquisition, United now operates in two business segments: community banking and mortgage banking. Prior to the Cardinal acquisition, United’s business activities were confined to just one reportable segment of community banking.

Through its community banking segment, United offers a full range of products and services through various delivery channels. In particular, the community banking segment includes both commercial and consumer lending and provides customers with such products as commercial loans, real estate loans, business financing and consumer loans. In addition, this segment provides customers with several choices of deposit products including demand deposit accounts, savings accounts and certificates of deposit as well as investment and financial advisory services to businesses and individuals, including financial planning, retirement/estate planning, and investment management. The mortgage banking segment engages primarily in the origination and acquisition of residential mortgages for sale into the secondary market though George Mason.

The community banking segment provides the mortgage banking segment (George Mason) with short-term funds to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest based on the prime rate. These transactions are eliminated in the consolidation process.

The Company does not have any operating segments other than those reported. The “Other” category consists of financial information not directly attributable to a specific segment, including interest income from investments and net securities gains or losses of parent companies and their non-banking subsidiaries, interest expense related to subordinated notes of unconsolidated subsidiaries as well as the elimination of non-segment related intercompany transactions such as management fees. The “Other” represents an overhead function rather than an operating segment.

Information about the reportable segments and reconciliation of this information to the consolidated financial statements at and for the three and nine months ended September 30, 2017 and 2016 is as follows:


	At and For the Three Months Ended September 30, 2017
	Community Banking		Mortgage Banking			Other			Consolidated
Net interest income	$	152,886	$	(36	)	$	(2,574	)	$	150,276
Provision for loans losses		7,279		0			0			7,279
Other income		18,373		19,936			(80	)		38,229
Other expense		74,553		24,036			(1,937	)		96,652
Income taxes		29,490		(1,332	)		(322	)		27,836

Net income (loss)	$	59,937	$	(2,804	)	$	(395	)	$	56,738

Total assets (liabilities)	$	18,780,395	$	350,483		$	(900	)	$	19,129,978
Average assets (liabilities)		18,620,035		321,744			(13,994	)		18,927,785


	At and For the Three Months Ended September 30, 2016
	Community Banking		Other			Consolidated
Net interest income	$	113,033	$	(1,964	)	$	111,069
Provision for loans losses		6,988		0			6,988
Other income		19,666		(645	)		19,021
Other expense		63,009		(232	)		62,777
Income taxes		19,729		(883	)		18,846

Net income (loss)	$	42,973	$	(1,494	)	$	41,479

Total assets (liabilities)	$	14,364,797	$	(20,101	)	$	14,344,696
Average assets (liabilities)		14,182,202		(22,633	)		14,159,569


	At and For the Nine Months Ended September 30, 2017
	Community Banking		Mortgage Banking			Other			Consolidated
Net interest income	$	401,044	$	54		$	(6,957	)	$	394,141
Provision for loans losses		21,429		0			0			21,429
Other income		53,409		42,329			3,143			98,881
Other expense		215,935		42,744			12,952			271,631
Income taxes		73,214		(39	)		(5,819	)		67,356

Net income (loss)	$	143,875	$	(322	)	$	(10,947	)	$	132,606

Total assets (liabilities)	$	18,780,395	$	350,483		$	(900	)	$	19,129,978
Average assets (liabilities)		17,020,928		187,118			(20,402	)		17,187,644


	At and For the Nine Months Ended September 30, 2016
	Community Banking		Other			Consolidated
Net interest income	$	317,835	$	(5,757	)	$	312,078
Provision for loans losses		18,690		0			18,690
Other income		55,323		(1,943	)		53,380
Other expense		186,322		(634	)		185,688
Income taxes		55,580		(2,477	)		53,103

Net income (loss)	$	112,566	$	(4,589	)	$	107,977

Total assets (liabilities)	$	14,364,797	$	(20,101	)	$	14,344,696
Average assets (liabilities)		13,125,973		(21,575	)		13,104,398