19 . Business Segments The Companys business results are categorized into the following four business segments: Broker-Dealer, Asset Management Fee Income, Investment Income, and Corporate costs. The Broker-Dealer segment includes a broad range of services, such as underwriting and acting as a placement agent for public and private capital markets raising transactions and financial advisory services in M&amp;A, restructuring and other strategic transactions. The Broker-Dealer segment also includes institutional brokerage services and equity research services to our institutional investor clients. The Asset Management Fee Income segment includes the management of a broad range of pooled investment vehicles, including the Companys hedge funds, private equity funds, hedge funds of funds, and collateralized loan obligations. The Investment income segment includes income from the Companys principal investments in public and private securities and investment funds managed by HCS, as well as any other net interest and income from investing activities, and interest expense related to the Company's bond issuance. The Corporate Costs segment also includes expenses related to JMP Group LLC, JMP Holding LLC and JMP Group Inc., and is mainly comprised of corporate overhead expenses. During the third quarter of 2018, the Company changed its internal reporting which resulted in changes to the Company's segment information. The Company has restated the prior periods presented herein to conform to the new presentation. Management uses operating net income as a key metric when evaluating the performance of JMP Groups core business strategy and ongoing operations. This measure adjusts the Companys net income as follows: (i) reverses non-cash share-based compensation expense related to historical equity awards granted in prior periods, (ii) recognizes 100% of the cost of deferred compensation in the period for which such compensation was awarded, instead of recognizing such cost over the vesting period as required under GAAP, (iii) reverses amortization expense related to an intangible asset resulting from the repurchase of a portion of the equity of CLO III; (iv) unrealized gains or losses on commercial real estate investments, adjusted for non-cash expenditures, including depreciation and amortization; (v) reverses net unrealized gains and losses on strategic equity investments and warrants, (vi) excludes general loan loss provisions related to the CLOs, (vii) reverses one -time transaction costs related to the refinancing of the debt; (viii) one time expense associated with redemption of debt underlying the CLOs , the redemption of other debt, and the resulting acceleration of amortization of remaining capitalized issuance costs for each. These charges may otherwise obscure the Companys operating income and complicate an assessment of the Companys core business activities. The operating pre-tax net income facilitates a meaningful comparison of the Companys results in a given period to those in prior and future periods. The Company s segment information for the three and nine months ended September 30, 2018 and 2017 was prepared using the following methodology:  Revenues and expenses directly associated with each segment are included in determining segment operating income.  Revenues and expenses not directly associated with a specific segment are allocated based on the most relevant measures applicable, including revenues, headcount and other factors.  Each segment s operating expenses include: a) compensation and benefits expenses that are incurred directly in support of the segments and b) other operating expenses, which include expenses for premises and occupancy, professional fees, travel and entertainment, communications and information services, equipment and indirect support costs (including compensation and other operating expenses related thereto) for administrative services.  Assets directly associated with each segment are allocated to the respective segment. One exception i s depreciable assets, which are held at the Corporate segment. The associated depreciation is allocated to the related segment. Segment Operating Results Management believes that the following information provides a reasonable representation of each segment s contribution to revenues, income and assets: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Broker-Dealer Non-interest revenues $ 25,777 $ 26,848 $ 85,121 $ 69,944 Total net revenues after provision for loan losses $ 25,777 $ 26,848 $ 85,121 $ 69,944 Non-interest expenses 23,202 22,215 76,528 63,234 Segment operating pre-tax net income $ 2,575 $ 4,633 $ 8,593 $ 6,710 Segment assets $ 68,352 $ 81,880 $ 68,352 $ 81,880 Asset Management Fee Income Non-interest revenues $ 4,878 $ 4,798 $ 13,439 $ 14,965 Total net revenues after provision for loan losses $ 4,878 $ 4,798 $ 13,439 $ 14,965 Non-interest expenses 4,794 4,948 14,570 15,346 Segment operating pre-tax net income (loss) $ 84 $ (150 ) $ (1,131 ) $ (381 ) Segment assets $ 21,033 $ 19,424 $ 21,033 $ 19,424 Investment Income Non-interest revenues $ 237 $ 1,572 $ 5,961 $ 6,989 Net interest income 3,715 1,145 8,769 2,100 Gain (loss) on repurchase, reissuance or early retirement of debt - - (42 ) 210 Provision for loan losses (470 ) (593 ) (1,400 ) (2,415 ) Total net revenues after provision for loan losses $ 3,482 $ 2,124 $ 13,288 $ 6,884 Non-interest expenses 1,535 934 9,096 5,709 Segment operating pre-tax net income $ 1,947 $ 1,190 $ 4,192 $ 1,175 Segment assets $ 1,270,289 $ 908,228 $ 1,270,289 $ 908,228 Corporate Costs Non-interest expenses 2,688 2,772 7,519 6,915 Segment operating pre-tax net loss $ (2,688 ) $ (2,772 ) $ (7,519 ) $ (6,915 ) Segment assets $ 258,217 $ 329,631 $ 258,217 $ 329,631 Eliminations Non-interest revenues $ (1,205 ) $ (821 ) $ (3,352 ) $ (2,584 ) Total net revenues after provision for loan losses $ (1,205 ) $ (821 ) $ (3,352 ) $ (2,584 ) Non-interest expenses (1,205 ) (821 ) (3,354 ) (2,584 ) Segment operating pre-tax net income $ - $ - $ 2 $ - Segment assets $ (254,326 ) $ (308,132 ) $ (254,326 ) $ (308,132 ) Consolidating adjustments and reconciling items Non-interest revenues $ 325 (a) $ (2,089 ) (a) $ (1,312 ) (a) $ (5,958 ) (a) Net interest income 1,148 (b) 944 (b) 3,137 (b) 2,914 (b) Loss on repurchase or early retirement of debt (170 ) - (2,796 ) (5,542 ) (Provision) reversal for loan losses (984 ) 225 (2,799 ) (1,073 ) Total net revenues after provision for loan losses $ 319 $ (920 ) $ (3,770 ) $ (9,659 ) Non-interest expenses 599 (c) 1,323 (c) 2,358 (c) 3,897 (c) Non-controlling interest expense 823 780 138 1,712 Segment operating pre-tax net loss $ (1,103 ) $ (3,023 ) $ (6,266 ) $ (15,268 ) Segment assets $ - $ - $ - $ - Total Segments Non-interest revenues $ 30,012 30,308 99,857 83,356 Net interest income 4,863 2,089 11,906 5,014 Loss on repurchase, reissuance or early retirement of debt (170 ) - (2,838 ) (5,332 ) Provision for loan losses (1,454 ) (368 ) (4,199 ) (3,488 ) Total net revenues after provision for loan losses $ 33,251 $ 32,029 $ 104,726 $ 79,550 Non-interest expenses 31,613 31,371 106,717 92,517 Non-controlling interest expense 823 780 138 1,712 Segment operating pre-tax net income (loss) $ 815 $ (122 ) $ (2,129 ) $ (14,679 ) Total assets $ 1,363,566 $ 1,031,031 $ 1,363,566 $ 1,031,031 (a) Non-interest revenue adjustments are comprised of mark-to-market gains/losses on strategic equity investments and warrants, deferred compensation invested in funds, and unrealized gains or losses on commercial real estate investments, adjusted for non-cash expenditures, included depreciation and amortization. (b) The net interest income adjustment is comprised of costs related to refinancing and early retirement of debt. (c) Non-interest expense adjustments relate to reversals of share-based and deferred compensation and the amortization expense related to an intangible asset. (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Operating net income $ 1,741 $ 2,291 $ 3,494 $ 767 Addback (subtract) of segment income tax expense (benefit) 177 610 643 (178 ) Total Segments adjusted operating pre-tax net income $ 1,918 $ 2,901 $ 4,137 $ 589 Subtract (Add back) Share-based awards and deferred compensation 76 696 289 1,863 General loan loss provision (reversal)  CLOs, CLO warehouse 855 (136 ) 2,348 697 Early debt retirement retirement/reissuance 170 - 1,488 5,432 Restructuring costs  CLOs - 14 54 300 Amortization of intangible asset  CLO III 69 69 207 207 Unrealized loss  real estate-related depreciation and amortization 260 2,571 1,864 6,472 Unrealized mark-to-market (gain) loss-strategic equity investments (327 ) (191 ) 16 297 Total Consolidation Adjustments and Reconciling Items 1,103 3,023 6,266 15,268 Consolidated pre-tax net income (loss) attributable to JMP Group LLC $ 815 $ (122 ) $ (2,129 ) $ (14,679 ) Income tax expense (benefit) 527 1,113 (146 ) (169 ) Consolidated net income (loss) attributable to JMP Group LLC $ 288 $ (1,235 ) $ (1,983 ) $ (14,510 )