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Business Segments
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Business Segments

21. BUSINESS SEGMENTS

The Company has identified two principal reportable segments: Business Financial and Commercial Banking Centers (“Centers”) and the Treasury Department. The Bank has 40 Business Financial Centers and eight Commercial Banking Centers organized in geographic regions, which are the focal points for customer sales and services. The Company utilizes an internal reporting system to measure the performance of various operating segments within the Bank which is the basis for determining the Bank’s reportable segments. The chief operating decision maker (currently our CEO) regularly reviews the financial information of these segments in deciding how to allocate resources and to assess performance. Centers are considered one operating segment as their products and services are similar and are sold to similar types of customers, have similar production and distribution processes, have similar economic characteristics, and have similar reporting and organizational structures. The Treasury Department’s primary focus is managing the Bank’s investments, liquidity and interest rate risk. Information related to the Company’s remaining operating segments, which include construction lending, dairy & livestock and agribusiness lending, leasing, CitizensTrust, and centralized functions have been aggregated and included in “Other.” In addition, the Company allocates internal funds transfer pricing to the segments using a methodology that charges users of funds interest expense and credits providers of funds interest income with the net effect of this allocation being recorded in administration.

The following tables represent the selected financial information for these two business segments. GAAP does not have an authoritative body of knowledge regarding the management accounting used in presenting segment financial information. The accounting policies for each of the business units is the same as those policies identified for the consolidated Company and disclosed in Note 3 — Summary of Significant Accounting Policies, included herein. The income numbers represent the actual income and expenses of each business unit. In addition, each segment has allocated income and expenses based on management’s internal reporting system, which allows management to determine the performance of each of its business units. Loan fees included in the “Centers” category are the actual loan fees paid to the Company by its customers. These fees are eliminated and deferred in the “Other” category, resulting in deferred loan fees for the condensed consolidated financial statements. All income and expense items not directly associated with the two business segments are grouped in the “Other” category. Future changes in the Company’s management structure or reporting methodologies may result in changes in the measurement of operating segment results.

 

The following tables present the operating results and other key financial measures for the individual operating segments for the periods presented.

 

    For the Year Ended December 31, 2015  
    Centers     Treasury     Other     Eliminations     Total  
    (Dollars in thousands)  

Interest income, including loan fees

     $ 143,577        $ 75,914        $ 42,022        $ —          $ 261,513   

Credit for funds provided (1)

     34,876        —          52,193        (87,069 )      —     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest income

     178,453        75,914        94,215        (87,069 )      261,513   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Interest expense

     6,584        1,611        376        —          8,571   

Charge for funds used (1)

     4,236        62,137        20,696        (87,069 )      —     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest expense

     10,820        63,748        21,072        (87,069 )      8,571   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net interest income

     167,633        12,166        73,143        —          252,942   

Recapture of provision for loan losses

     —          —          (5,600 )      —          (5,600 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net interest income after recapture of provision for loan losses

     167,633        12,166        78,743        —          258,542   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Noninterest income

     20,677        (22 )      12,828        —          33,483   

Noninterest expense

     48,568        859        77,362        —          126,789   

Debt termination expense

     —          13,870        —          —          13,870   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Segment pre-tax profit (loss)

     $ 139,742        $ (2,585 )      $ 14,209        $ —          $ 151,366   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Segment assets as of December 31, 2015

     $   6,458,711        $   3,345,060        $   804,258        $ (2,936,829 )      $   7,671,200   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

  (1) Credit for funds provided and charges for funds used are eliminated in the condensed consolidated presentation.

 

    For the Year Ended December 31, 2014  
    Centers     Treasury     Other     Eliminations     Total  
    (Dollars in thousands)  

Interest income, including loan fees

     $ 139,061        $ 71,369        $ 42,473        $ —          $ 252,903   

Credit for funds provided (1)

     31,188        —          46,770        (77,958 )      —     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest income

     170,249        71,369        89,243        (77,958 )      252,903   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Interest expense

     6,494        9,590        305        —          16,389   

Charge for funds used (1)

     3,823        54,885        19,250        (77,958 )      —     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest expense

     10,317        64,475        19,555        (77,958 )      16,389   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net interest income

     159,932        6,894        69,688        —          236,514   

Recapture of provision for loan losses

     —          —          (16,100 )      —          (16,100 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net interest income after recapture of provision for loan losses

     159,932        6,894        85,788        —          252,614   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Noninterest income

     20,513        —          15,899        —          36,412   

Noninterest expense

     47,493        784        77,952        —          126,229   

Debt termination expense

     —          —          —          —          —     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Segment pre-tax profit

     $ 132,952        $ 6,110        $ 23,735        $ —          $ 162,797   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Segment assets as of December 31, 2014

     $   6,002,390        $   3,268,551        $   757,093        $ (2,650,114 )      $   7,377,920   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

  (1) Credit for funds provided and charges for funds used are eliminated in the condensed consolidated presentation.

 

    For the Year Ended December 31, 2013  
    Centers     Treasury     Other     Eliminations     Total  
    (Dollars in thousands)  

Interest income, including loan fees

     $ 139,369        $ 53,234        $ 40,170        $ —          $ 232,773   

Credit for funds provided (1)

     26,754        —          41,987        (68,741 )      —     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest income

     166,123        53,234        82,157        (68,741 )      232,773   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Interest expense

     6,137        9,700        670        —          16,507   

Charge for funds used (1)

     3,193        45,269        20,279        (68,741 )      —     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest expense

     9,330        54,969        20,949        (68,741 )      16,507   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net interest income

     156,793        (1,735 )      61,208        —          216,266   

Recapture of provision for loan losses

     —          —          (16,750 )      —          (16,750 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net interest income after recapture of provision for loan losses

     156,793        (1,735 )      77,958        —          233,016   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Noninterest income

     20,733        2,094        2,460        —          25,287   

Noninterest expense

     45,268        714        68,046        —          114,028   

Debt termination expense

     —          —          —          —          —     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Segment pre-tax profit (loss)

     $ 132,258        $ (355 )      $ 12,372        $ —          $ 144,275   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Segment assets as of December 31, 2013

     $   5,405,939        $   2,866,760        $   710,844        $   (2,318,576)        $   6,664,967   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

  (1) Credit for funds provided and charges for funds used are eliminated in the condensed consolidated presentation.