17. SEGMENT INFORMATION Reportable segments are determined by the type of products and services offered and the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business (such as banking centers and business units), which are then aggregated if operating performance, products/services, and clients are similar. As of September 30, 2018, the Company was divided into five reportable segments: Traditional Banking, Warehouse Lending (Warehouse), Mortgage Banking, Tax Refund Solutions (TRS), and Republic Credit Solutions (RCS). Management considers the first three segments to collectively constitute Core Bank or Core Banking operations, while the last two segments collectively constitute Republic Processing Group (RPG) operations. The Banks Correspondent Lending channel and the Companys national branchless banking platform, MemoryBank, are considered part of the Traditional Banking segment. The table below provides the nature of segment operations and the primary drivers of net revenues by reportable segment: Reportable Segment: Nature of Operations: Primary Drivers of Net Revenue: Core Banking: Traditional Banking Provides traditional banking products to clients in its market footprint primarily via its network of banking centers and to clients outside of its market footprint primarily via its Digital and Correspondent Lending delivery channels. Loans, investments, and deposits. Warehouse Lending Provides short-term, revolving credit facilities to mortgage bankers across the United States. Mortgage warehouse lines of credit. Mortgage Banking Primarily originates, sells and services long-term, single family, first lien residential real estate loans primarily to clients in the Bank's market footprint. Loan sales and servicing. Republic Processing Group: Tax Refund Solutions TRS offers tax-related credit products and facilitates the receipt and payment of federal and state tax refund products. The RPS division of TRS offers general-purpose reloadable cards. TRS and RPS products are primarily provided to clients outside of the Banks market footprint. Loans, refund transfers, and prepaid cards. Republic Credit Solutions Offers consumer credit products. RCS products are primarily provided to clients outside of the Banks market footprint, with a substantial portion of RCS clients considered subprime or near-prime borrowers. Unsecured, consumer loans. The accounting policies used for Republics reportable segments are the same as those described in the summary of significant accounting policies in the Companys 2017 Annual Report on Form 10-K. Republic evaluates segment performance using operating income. The Company allocates goodwill to the Traditional Banking segment. Republic generally allocates income taxes based on income before income tax expense unless Republic can reasonably make specific segment allocations. The Company makes transactions among reportable segments at carrying value. Segment information for the three and nine months ended September 30, 2018 and 2017 follows: Three Months Ended September 30, 2018 Core Banking Republic Processing Group ("RPG") Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 40,655 $ 4,414 $ 133 $ 45,202 $ 113 $ 7,718 $ 7,831 $ 53,033 Provision for loan and lease losses 696 (183)  513 (1,028) 4,592 3,564 4,077 Net refund transfer fees     149  149 149 Mortgage banking income   1,360 1,360    1,360 Program fees     93 1,593 1,686 1,686 Other noninterest income 7,864 11 124 7,999 22 249 271 8,270 Total noninterest income 7,864 11 1,484 9,359 264 1,842 2,106 11,465 Total noninterest expense 34,847 834 1,071 36,752 2,656 1,804 4,460 41,212 Income (loss) before income tax expense 12,976 3,774 546 17,296 (1,251) 3,164 1,913 19,209 Income tax expense (benefit) 966 864 114 1,944 (799) 653 (146) 1,798 Net income (loss) $ 12,010 $ 2,910 $ 432 $ 15,352 $ (452) $ 2,511 $ 2,059 $ 17,411 Period-end assets $ 4,537,971 $ 561,625 $ 13,251 $ 5,112,847 $ 15,991 $ 93,516 $ 109,507 $ 5,222,354 Net interest margin 3.82 % 3.26 % NM 3.76 % NM NM NM 4.32 % Net-revenue concentration* 74 % 7 % 3 % 84 % 1 % 15 % 16 % 100 % Three Months Ended September 30, 2017 Core Banking Republic Processing Group ("RPG") Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 37,396 $ 4,737 $ 102 $ 42,235 $ 60 $ 6,012 $ 6,072 $ 48,307 Provision for loan and lease losses 683 (74)  609 (840) 4,452 3,612 4,221 Net refund transfer fees     177  177 177 Mortgage banking income   1,102 1,102    1,102 Program fees     63 1,534 1,597 1,597 Other noninterest income 7,130 11 65 7,206 16 276 292 7,498 Total noninterest income 7,130 11 1,167 8,308 256 1,810 2,066 10,374 Total noninterest expense 32,280 848 1,149 34,277 2,851 898 3,749 38,026 Income (loss) before income tax expense 11,563 3,974 120 15,657 (1,695) 2,472 777 16,434 Income tax expense (benefit) 3,951 1,454 41 5,446 (615) 897 282 5,728 Net income (loss) $ 7,612 $ 2,520 $ 79 $ 10,211 $ (1,080) $ 1,575 $ 495 $ 10,706 Period-end assets $ 4,361,591 $ 570,676 $ 9,395 $ 4,941,662 $ 13,090 $ 38,422 $ 51,512 $ 4,993,174 Net interest margin 3.70 % 3.54 % NM 3.68 % NM NM NM 4.17 % Net-revenue concentration* 76 % 8 % 2 % 86 % 1 % 13 % 14 % 100 % *Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. NM  Not Meaningful Nine Months Ended September 30, 2018 Core Banking Republic Processing Group ("RPG") Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 118,191 $ 12,169 $ 308 $ 130,668 $ 19,127 $ 21,987 $ 41,114 $ 171,782 Provision for loan and lease losses 2,158 88  2,246 11,473 12,545 24,018 26,264 Net refund transfer fees     19,974  19,974 19,974 Mortgage banking income   3,696 3,696    3,696 Program fees     276 4,429 4,705 4,705 Other noninterest income 22,591 30 211 22,832 1,212 887 2,099 24,931 Total noninterest income 22,591 30 3,907 26,528 21,462 5,316 26,778 53,306 Total noninterest expense 103,654 2,523 3,451 109,628 11,454 3,807 15,261 124,889 Income before income tax expense 34,970 9,588 764 45,322 17,662 10,951 28,613 73,935 Income tax expense 4,906 2,193 160 7,259 3,664 2,466 6,130 13,389 Net income $ 30,064 $ 7,395 $ 604 $ 38,063 $ 13,998 $ 8,485 $ 22,483 $ 60,546 Period-end assets $ 4,537,971 $ 561,625 $ 13,251 $ 5,112,847 $ 15,991 $ 93,516 $ 109,507 $ 5,222,354 Net interest margin 3.71 % 3.18 % NM 3.65 % NM NM NM 4.67 % Net-revenue concentration* 63 % 5 % 2 % 70 % 18 % 12 % 30 % 100 % Nine Months Ended September 30, 2017 Core Banking Republic Processing Group ("RPG") Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 103,490 $ 13,073 $ 255 $ 116,818 $ 15,179 $ 15,885 $ 31,064 $ 147,882 Provision for loan and lease losses 2,611 (36)  2,575 6,763 12,295 19,058 21,633 Net refund transfer fees     18,329  18,329 18,329 Mortgage banking income   3,707 3,707    3,707 Program fees     103 3,869 3,972 3,972 Other noninterest income 20,618 27 192 20,837 152 1,227 1,379 22,216 Total noninterest income 20,618 27 3,899 24,544 18,584 5,096 23,680 48,224 Total noninterest expense 93,552 2,448 3,347 99,347 10,891 2,461 13,352 112,699 Income before income tax expense 27,945 10,688 807 39,440 16,109 6,225 22,334 61,774 Income tax expense 8,684 3,909 282 12,875 5,846 2,259 8,105 20,980 Net income $ 19,261 $ 6,779 $ 525 $ 26,565 $ 10,263 $ 3,966 $ 14,229 $ 40,794 Period-end assets $ 4,361,591 $ 570,676 $ 9,395 $ 4,941,662 $ 13,090 $ 38,422 $ 51,512 $ 4,993,174 Net interest margin 3.48 % 3.58 % NM 3.49 % NM NM NM 4.34 % Net-revenue concentration* 63 % 7 % 2 % 72 % 17 % 11 % 28 % 100 % *Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. NM  Not Meaningful