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Business Segments | 9 Months Ended
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Sep. 30, 2016
Segment Reporting [Abstract] |
Business Segments |
10. | BUSINESS SEGMENTS
The Company has identified two principal reportable segments: Business Financial and Commercial Banking Centers (“Centers”) and the Treasury Department. The Bank has 42 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 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 in our Annual Report on Form 10-K for the year ended December 31, 2015. 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 Three Months Ended September 30, 2016
|  | Centers |  | Treasury |  | Other |  | Eliminations |  | Total
|  | (Dollars in thousands)
Interest income, including loan fees |  | $ | 39,034 |  |  | $ | 17,439 |  |  | $ | 8,698 |  |  | $ | - |  |  | $ | 65,171 |
Credit for funds provided (1) |  |  | 9,576 |  |  |  | - |  |  |  | 14,586 |  |  |  | (24,162 | ) |  |  | - |
Total interest income |  |  | 48,610 |  |  |  | 17,439 |  |  |  | 23,284 |  |  |  | (24,162 | ) |  |  | 65,171 |
Interest expense |  |  | 1,750 |  |  |  | 123 |  |  |  | 137 |  |  |  | - |  |  |  | 2,010 |
Charge for funds used (1) |  |  | 1,361 |  |  |  | 17,153 |  |  |  | 5,648 |  |  |  | (24,162 | ) |  |  | - |
Total interest expense |  |  | 3,111 |  |  |  | 17,276 |  |  |  | 5,785 |  |  |  | (24,162 | ) |  |  | 2,010 |
Net interest income |  |  | 45,499 |  |  |  | 163 |  |  |  | 17,499 |  |  |  | - |  |  |  | 63,161 |
Recapture of provision for loan losses |  |  | - |  |  |  | - |  |  |  | (2,000 | ) |  |  | - |  |  |  | (2,000 | )
Net interest income after recapture of provision for loan losses |  |  | 45,499 |  |  |  | 163 |  |  |  | 19,499 |  |  |  | - |  |  |  | 65,161 |
Noninterest income |  |  | 5,182 |  |  |  | 548 |  |  |  | 3,453 |  |  |  | - |  |  |  | 9,183 |
Noninterest expense |  |  | 12,423 |  |  |  | 218 |  |  |  | 20,365 |  |  |  | - |  |  |  | 33,006 |
Segment pre-tax profit |  | $ | 38,258 |  |  | $ | 493 |  |  | $ | 2,587 |  |  | $ | - |  |  | $ | 41,338 |
Segment assets as of September 30, 2016 |  | $ | 6,963,530 |  |  | $ | 3,424,605 |  |  | $ | 906,344 |  |  | $ | (3,249,486 | ) |  | $ | 8,044,993 |
| (1) | Credit for funds provided and charges for funds used are eliminated in the condensed consolidated presentation.
|  | For the Three Months Ended September 30, 2015
|  | Centers |  | Treasury |  | Other |  | Eliminations |  | Total
|  | (Dollars in thousands)
Interest income, including loan fees |  | $ | 36,998 |  |  | $ | 18,927 |  |  | $ | 11,806 |  |  | $ | - |  |  | $ | 67,731 |
Credit for funds provided (1) |  |  | 8,977 |  |  |  | - |  |  |  | 13,249 |  |  |  | (22,226 | ) |  |  | - |
Total interest income |  |  | 45,975 |  |  |  | 18,927 |  |  |  | 25,055 |  |  |  | (22,226 | ) |  |  | 67,731 |
Interest expense |  |  | 1,654 |  |  |  | 58 |  |  |  | 102 |  |  |  | - |  |  |  | 1,814 |
Charge for funds used (1) |  |  | 1,088 |  |  |  | 15,983 |  |  |  | 5,155 |  |  |  | (22,226 | ) |  |  | - |
Total interest expense |  |  | 2,742 |  |  |  | 16,041 |  |  |  | 5,257 |  |  |  | (22,226 | ) |  |  | 1,814 |
Net interest income |  |  | 43,233 |  |  |  | 2,886 |  |  |  | 19,798 |  |  |  | - |  |  |  | 65,917 |
Recapture of provision for loan losses |  |  | - |  |  |  | - |  |  |  | (2,500 | ) |  |  | - |  |  |  | (2,500 | )
Net interest income after recapture of provision for loan losses |  |  | 43,233 |  |  |  | 2,886 |  |  |  | 22,298 |  |  |  | - |  |  |  | 68,417 |
Noninterest income |  |  | 5,276 |  |  |  | (22 | ) |  |  | 3,159 |  |  |  | - |  |  |  | 8,413 |
Noninterest expense |  |  | 12,496 |  |  |  | 219 |  |  |  | 20,027 |  |  |  | - |  |  |  | 32,742 |
Segment pre-tax profit |  | $ | 36,013 |  |  | $ | 2,645 |  |  | $ | 5,430 |  |  | $ | - |  |  | $ | 44,088 |
Segment assets as of September 30, 2015 |  | $ | 6,419,264 |  |  | $ | 3,505,392 |  |  | $ | 809,514 |  |  | $ | (3,107,708 | ) |  | $ | 7,626,462 |
| (1) | Credit for funds provided and charges for funds used are eliminated in the condensed consolidated presentation.
|  | For the Nine Months Ended September 30, 2016
|  | Centers |  | Treasury |  | Other |  | Eliminations |  | Total
|  | (Dollars in thousands)
Interest income, including loan fees |  | $ | 114,491 |  |  | $ | 53,975 |  |  | $ | 29,220 |  |  | $ | - |  |  | $ | 197,686 |
Credit for funds provided (1) |  |  | 27,093 |  |  |  | - |  |  |  | 42,271 |  |  |  | (69,364 | ) |  |  | - |
Total interest income |  |  | 141,584 |  |  |  | 53,975 |  |  |  | 71,491 |  |  |  | (69,364 | ) |  |  | 197,686 |
Interest expense |  |  | 5,153 |  |  |  | 510 |  |  |  | 390 |  |  |  | - |  |  |  | 6,053 |
Charge for funds used (1) |  |  | 4,115 |  |  |  | 48,131 |  |  |  | 17,118 |  |  |  | (69,364 | ) |  |  | - |
Total interest expense |  |  | 9,268 |  |  |  | 48,641 |  |  |  | 17,508 |  |  |  | (69,364 | ) |  |  | 6,053 |
Net interest income |  |  | 132,316 |  |  |  | 5,334 |  |  |  | 53,983 |  |  |  | - |  |  |  | 191,633 |
Recapture of provision for loan losses |  |  | - |  |  |  | - |  |  |  | (2,000 | ) |  |  | - |  |  |  | (2,000 | )
Net interest income after recapture of provision for loan losses |  |  | 132,316 |  |  |  | 5,334 |  |  |  | 55,983 |  |  |  | - |  |  |  | 193,633 |
Noninterest income |  |  | 15,335 |  |  |  | 548 |  |  |  | 11,257 |  |  |  | - |  |  |  | 27,140 |
Noninterest expense |  |  | 37,924 |  |  |  | 652 |  |  |  | 63,216 |  |  |  | - |  |  |  | 101,792 |
Debt termination expense |  |  | - |  |  |  | 16 |  |  |  | - |  |  |  | - |  |  |  | 16 |
Segment pre-tax profit |  | $ | 109,727 |  |  | $ | 5,214 |  |  | $ | 4,024 |  |  | $ | - |  |  | $ | 118,965 |
Segment assets as of September 30, 2016 |  | $ | 6,963,530 |  |  | $ | 3,424,605 |  |  | $ | 906,344 |  |  | $ | (3,249,486 | ) |  | $ | 8,044,993 |
| (1) | Credit for funds provided and charges for funds used are eliminated in the condensed consolidated presentation.
|  | For the Nine Months Ended September 30, 2015
|  | Centers |  | Treasury |  | Other |  | Eliminations |  | Total
|  | (Dollars in thousands)
Interest income, including loan fees |  | $ | 108,179 |  |  | $ | 56,792 |  |  | $ | 31,455 |  |  | $ | - |  |  | $ | 196,426 |
Credit for funds provided (1) |  |  | 25,718 |  |  |  | - |  |  |  | 38,914 |  |  |  | (64,632 | ) |  |  | - |
Total interest income |  |  | 133,897 |  |  |  | 56,792 |  |  |  | 70,369 |  |  |  | (64,632 | ) |  |  | 196,426 |
Interest expense |  |  | 4,945 |  |  |  | 1,520 |  |  |  | 277 |  |  |  | - |  |  |  | 6,742 |
Charge for funds used (1) |  |  | 3,207 |  |  |  | 46,230 |  |  |  | 15,195 |  |  |  | (64,632 | ) |  |  | - |
Total interest expense |  |  | 8,152 |  |  |  | 47,750 |  |  |  | 15,472 |  |  |  | (64,632 | ) |  |  | 6,742 |
Net interest income |  |  | 125,745 |  |  |  | 9,042 |  |  |  | 54,897 |  |  |  | - |  |  |  | 189,684 |
Recapture of provision for loan losses |  |  | - |  |  |  | - |  |  |  | (4,500 | ) |  |  | - |  |  |  | (4,500 | )
Net interest income after recapture of provision for loan losses |  |  | 125,745 |  |  |  | 9,042 |  |  |  | 59,397 |  |  |  | - |  |  |  | 194,184 |
Noninterest income |  |  | 15,662 |  |  |  | (22 | ) |  |  | 9,129 |  |  |  | - |  |  |  | 24,769 |
Noninterest expense |  |  | 36,604 |  |  |  | 643 |  |  |  | 57,630 |  |  |  | - |  |  |  | 94,877 |
Debt termination expense |  |  | - |  |  |  | 13,870 |  |  |  | - |  |  |  | - |  |  |  | 13,870 |
Segment pre-tax profit (loss) |  | $ | 104,803 |  |  | $ | (5,493 | ) |  | $ | 10,896 |  |  | $ | - |  |  | $ | 110,206 |
Segment assets as of September 30, 2015 |  | $ | 6,419,264 |  |  | $ | 3,505,392 |  |  | $ | 809,514 |  |  | $ | (3,107,708 | ) |  | $ | 7,626,462 |
| (1) | Credit for funds provided and charges for funds used are eliminated in the condensed consolidated presentation.

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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 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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