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Segment Reporting | 12 Months Ended
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Dec. 31, 2017
Segment Reporting | NOTE 19: SEGMENT REPORTING Reflecting the sale of the Company’s mortgage banking business, the Residential Mortgage Banking segment will no longer be reportable. The information presented below represents activity in the Residential Mortgage Banking segment through September 30, 2017. The Company’s operations were divided into two reportable business segments: Banking Operations and Residential Mortgage Banking. These operating segments have been identified based on the Company’s organizational structure. The segments required unique technology and marketing strategies, and offer different products and services. While the Company is managed as an integrated organization, individual executive managers were held accountable for the operations of these business segments. The Company measures and presents information for internal reporting purposes in a variety of ways. The internal reporting system presently used by management in the planning and measurement of operating activities, and to which most managers are held accountable, is based on organizational structure. The management accounting process used various estimates and allocated methodologies to measure the performance of the operating segments. To determine financial performance for each segment, the Company allocated capital, funding charges and credits, certain non-interest expenses, and income tax provisions to each segment, as applicable. Allocation methodologies were subject to periodic adjustment as the internal management accounting system was revised and/or as business or product lines within the segments change. In addition, because the development and application of these methodologies was a dynamic process, the financial results presented may be periodically revised. The Company allocated expenses to the reportable segments based on various factors, including the volume and number of loans produced and the number of full-time equivalent employees. Income taxes were allocated to the various segments based on taxable income and statutory rates applicable to the segment. Banking Operations Segment The Banking Operations segment serves consumers and businesses by offering and servicing a variety of loan and deposit products and other financial services. Residential Mortgage Banking Segment The Residential Mortgage Banking segment originated, aggregated, sold, and serviced one-to-four family mortgage loans. Mortgage loan products consisted primarily of agency-conforming, fixed and adjustable rate loans and, to a lesser extent, jumbo loans, for the purpose of purchasing or refinancing one-to-four family homes. The Residential Mortgage Banking segment earned interest on loans held in the warehouse and non-interest income from the origination and servicing of loans. It also recognized gains or losses on the sale of such loans. The following tables provide a summary of the Company’s segment results for the years ended December 31, 2017, 2016, and 2015 on an internally managed accounting basis:
|  | For the Twelve Months Ended December 31, 2017 |
(in thousands) |  | Banking Operations |  |  | Residential Mortgage Banking |  |  | Total Company |
Net interest income |  | $ | 1,121,460 |  |  | $ | 8,543 |  |  | $ | 1,130,003 |
Provision for loan losses |  |  | 37,242 |  |  |  | — |  |  |  | 37,242 |
Non-Interest Income: |  |  |  |  |  |  |  |  |  |  |  |
Third party(1) |  |  | 188,564 |  |  |  | 20,957 |  |  |  | 209,521 |
Gain on sale of mortgage banking operation |  |  | — |  |  |  | 7,359 |  |  |  | 7,359 |
Inter-segment |  |  | (10,222 | ) |  |  | 10,222 |  |  |  | — |
Total non-interest income |  |  | 178,342 |  |  |  | 38,538 |  |  |  | 216,880 |
Non-interest expense(2) |  |  | 594,394 |  |  |  | 47,032 |  |  |  | 641,426 |
Income before income tax expense |  |  | 668,166 |  |  |  | 49 |  |  |  | 668,215 |
Income tax expense |  |  | 201,994 |  |  |  | 20 |  |  |  | 202,014 |
Net income |  | $ | 466,172 |  |  | $ | 29 |  |  | $ | 466,201 |
Identifiable segment assets (period-end) |  | $ | 49,124,195 |  |  | $ | — |  |  | $ | 49,124,195 |
(1) | Includes ancillary fee income.
(2) | Includes both direct and indirect expenses.
|  | For the Twelve Months Ended December 31, 2016 |
(in thousands) |  | Banking Operations |  |  | Residential Mortgage Banking |  |  | Total Company |
Net interest income |  | $ | 1,272,423 |  |  | $ | 14,959 |  |  | $ | 1,287,382 |
Provision for loan losses |  |  | 4,180 |  |  |  | — |  |  |  | 4,180 |
Non-Interest Income: |  |  |  |  |  |  |  |  |  |  |  |
Third party(1) |  |  | 116,200 |  |  |  | 29,372 |  |  |  | 145,572 |
Inter-segment |  |  | (17,645 | ) |  |  | 17,645 |  |  |  | — |
Total non-interest income |  |  | 98,555 |  |  |  | 47,017 |  |  |  | 145,572 |
Non-interest expense(2) |  |  | 584,894 |  |  |  | 66,752 |  |  |  | 651,646 |
Income (loss) before income tax expense (benefit) |  |  | 781,904 |  |  |  | (4,776 | ) |  |  | 777,128 |
Income tax expense (benefit) |  |  | 283,656 |  |  |  | (1,929 | ) |  |  | 281,727 |
Net income (loss) |  | $ | 498,248 |  |  | $ | (2,847 | ) |  | $ | 495,401 |
Identifiable segment assets (period-end) |  | $ | 48,195,581 |  |  | $ | 730,974 |  |  | $ | 48,926,555 |
(1) | Includes ancillary fee income.
(2) | Includes both direct and indirect expenses.
|  | For the Twelve Months Ended December 31, 2015 |
(in thousands) |  | Banking Operations |  |  | Residential Mortgage Banking |  |  | Total Company |
Net interest income |  | $ | 393,074 |  |  | $ | 15,001 |  |  | $ | 408,075 |
Recoveries of loan losses |  |  | (15,004 | ) |  |  | — |  |  |  | (15,004 | )
Non-Interest Income: |  |  |  |  |  |  |  |  |  |  |  |
Third party(1) |  |  | 154,847 |  |  |  | 55,916 |  |  |  | 210,763 |
Inter-segment |  |  | (15,359 | ) |  |  | 15,359 |  |  |  | — |
Total non-interest income |  |  | 139,488 |  |  |  | 71,275 |  |  |  | 210,763 |
Non-interest expense(2) |  |  | 700,469 |  |  |  | 65,386 |  |  |  | 765,855 |
(Loss) income before income tax expense |  |  | (152,903 | ) |  |  | 20,890 |  |  |  | (132,013 | )
Income tax (benefit) expense |  |  | (93,297 | ) |  |  | 8,440 |  |  |  | (84,857 | )
Net (loss) income |  | $ | (59,606 | ) |  | $ | 12,450 |  |  | $ | (47,156 | )
Identifiable segment assets (period-end) |  | $ | 49,619,931 |  |  | $ | 697,865 |  |  | $ | 50,317,796 |
(1) | Includes ancillary fee income.
(2) | Includes both direct and indirect expenses.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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