XML 52 R17.htm IDEA: XBRL DOCUMENT v3.5.0.2
Business Segments
 9 Months Ended
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.