16. SEGMENT INFORMATION We have the following three reportable segments: Banking Operations, Treasury and All Others. These segments are consistent with our internal functional reporting lines and are managed separately because each unit has different target markets, technological requirements, and specialized skills. The Banking Operations segment includes construction and real estate development lending, commercial lending, residential mortgage lending, indirect auto lending, trust services, retail brokerage services and our retail branch offices, which provide a full range of deposit and loan products, as well as various other banking services. The Treasury segment is responsible for managing the Company's investment securities portfolio and wholesale funding activities. The All Others segment consists of all activities not captured by the Banking Operations or Treasury segments described above and includes activities such as electronic banking, data processing and management of bank owned properties. The accounting policies of the segments are consistent with the Company's accounting policies that are described in Note 1 - Summary of Significant Accounting Policies to the consolidated financial statements in the Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC. The majority of the Company's net income is derived from net interest income. Accordingly, management focuses primarily on net interest income, rather than gross interest income and expense amounts, in evaluating segment profitability. Intersegment net interest income (expense) was allocated to each segment based upon a funds transfer pricing process that assigns costs of funds to assets and earnings credits to liabilities based on market interest rates that reflect interest rate sensitivity and maturity characteristics. All administrative and overhead expenses are allocated to the segments at cost. Cash, investment securities, loans and leases and their related balances are allocated to the segment responsible for acquisition and maintenance of those assets. Segment assets also include all premises and equipment used directly in segment operations. Segment profits and assets are provided in the following tables for the periods indicated. (dollars in thousands) Banking Operations Treasury All Others Total Three Months Ended September 30, 2019 Net interest income $ 42,790 $ 2,859 $  $ 45,649 Inter-segment net interest income (expense) 4,788 (2,825 ) (1,963 )  Credit (provision) for loan and lease losses (1,532 )   (1,532 ) Other operating income: Mortgage banking income 1,360  404 1,764 Service charges on deposit accounts 2,125   2,125 Other service charges and fees 1,470  2,254 3,724 Income from fiduciary activities 1,126   1,126 Equity in earnings of unconsolidated subsidiaries 86   86 Fees on foreign exchange 20 150  170 Investments securities gains (losses)  36  36 Income from bank-owned life insurance  645  645 Loan placement fees 230   230 Net gain (loss) sale of foreclosed assets   17 17 Other 154 4 185 343 Other operating income 6,571 835 2,860 10,266 Other operating expense (16,482 ) (352 ) (18,100 ) (34,934 ) Administrative and overhead expense allocation (17,495 ) (204 ) 17,699  Income before taxes 18,640 313 496 19,449 Income tax (expense) benefit (4,702 ) (89 ) (104 ) (4,895 ) Net income (loss) $ 13,938 $ 224 $ 392 $ 14,554 (dollars in thousands) Banking Operations Treasury All Others Total Three Months Ended September 30, 2018 Net interest income $ 38,872 $ 4,453 $  $ 43,325 Inter-segment net interest income (expense) 7,524 (4,327 ) (3,197 )  Credit (provision) for loan and lease losses 59   59 Other operating income: Mortgage banking income 1,173  750 1,923 Service charges on deposit accounts 2,189   2,189 Other service charges and fees 1,318 8 1,960 3,286 Income from fiduciary activities 1,159   1,159 Equity in earnings of unconsolidated subsidiaries 71   71 Fees on foreign exchange 22 198 220 Income from bank-owned life insurance  1,055  1,055 Loan placement fees 115   115 Other 448 58 296 802 Other operating income 6,495 1,319 3,006 10,820 Other operating expense (16,265 ) (335 ) (17,425 ) (34,025 ) Administrative and overhead expense allocation (15,481 ) (206 ) 15,687  Income before taxes 21,204 904 (1,929 ) 20,179 Income tax (expense) benefit (5,128 ) (215 ) 357 (4,986 ) Net income (loss) $ 16,076 $ 689 $ (1,572 ) $ 15,193 (dollars in thousands) Banking Operations Treasury All Others Total Nine Months Ended September 30, 2019 Net interest income $ 127,059 $ 9,081 $  $ 136,140 Inter-segment net interest income (expense) 18,080 (8,119 ) (9,961 )  Credit (provision) for loan and lease losses (4,219 )   (4,219 ) Other operating income: Mortgage banking income 2,967  1,822 4,789 Service charges on deposit accounts 6,247   6,247 Other service charges and fees 4,130  6,349 10,479 Income from fiduciary activities 3,220   3,220 Equity in earnings of unconsolidated subsidiaries 165   165 Fees on foreign exchange 67 472  539 Investments securities gains (losses)  36  36 Income from bank-owned life insurance  2,511  2,511 Loan placement fees 486   486 Net gain (loss) sale of foreclosed assets   17 17 Other 453 2,558 533 3,544 Other operating income 17,735 5,577 8,721 32,033 Other operating expense (48,289 ) (1,097 ) (56,003 ) (105,389 ) Administrative and overhead expense allocation (49,953 ) (624 ) 50,577  Income before taxes 60,413 4,818 (6,666 ) 58,565 Income tax (expense) benefit (14,896 ) (1,188 ) 1,644 (14,440 ) Net income (loss) $ 45,517 $ 3,630 $ (5,022 ) $ 44,125 (dollars in thousands) Banking Operations Treasury All Others Total Nine Months Ended September 30, 2018 Net interest income $ 112,295 $ 16,024 $  $ 128,319 Inter-segment net interest income (expense) 21,360 (14,717 ) (6,643 )  Credit (provision) for loan and lease losses (262 )   (262 ) Other operating income: Mortgage banking income 3,089  2,456 5,545 Service charges on deposit accounts 6,169   6,169 Other service charges and fees 3,748 22 5,927 9,697 Income from fiduciary activities 3,132   3,132 Equity in earnings of unconsolidated subsidiaries 151   151 Fees on foreign exchange 75 633 708 Income from bank-owned life insurance  1,874  1,874 Loan placement fees 532   532 Other 803 60 733 1,596 Other operating income 17,699 2,589 9,116 29,404 Other operating expense (47,967 ) (1,078 ) (51,995 ) (101,040 ) Administrative and overhead expense allocation (45,594 ) (652 ) 46,246  Income before taxes 57,531 2,166 (3,276 ) 56,421 Income tax (expense) benefit (12,707 ) (478 ) 458 (12,727 ) Net income $ 44,824 $ 1,688 $ (2,818 ) $ 43,694 (dollars in thousands) Banking Operations Treasury All Others Total September 30, 2019 Investment securities $  $ 1,187,933 $  $ 1,187,933 Loans and leases (including loans held for sale) 4,374,878   4,374,878 Other assets 25,867 250,474 137,564 413,905 Total assets $ 4,400,745 $ 1,438,407 $ 137,564 $ 5,976,716 (dollars in thousands) Banking Operations Treasury All Others Total December 31, 2018 Investment securities $  $ 1,354,812 $  $ 1,354,812 Loans and leases (including loans held for sale) 4,085,013   4,085,013 Other assets 36,905 256,652 73,644 367,201 Total assets $ 4,121,918 $ 1,611,464 $ 73,644 $ 5,807,026