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Business Segments | 6 Months Ended
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Jun. 30, 2018
Segment Reporting [Abstract] |
Business Segments |
10. | BUSINESS SEGMENTS
The Company has identified two principal reportable segments: Banking Centers (“Centers”) and Dairy & Livestock and Agribusiness. All other operations have been aggregated in “Other”. The Bank has 51 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 departments 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 two segments in deciding how to allocate resources and to assess performance. Our two principal reporting segments, Centers and Dairy & Livestock and Agribusiness, are aggregated into separate operating segments 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. All other operating departments have been aggregated and included in “Other” for reporting purposes. Recapture of provision for loan losses was allocated by reporting segment based on loan type. 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 the ”Other” category. 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, 2017. 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 Centers’ business segment 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 June 30, 2018
|  | Centers |  | Dairy & livestock and agribusiness |  | Other (1) |  | Total
|  | (Dollars in thousands)
Net interest income |  | $ | 52,271 |  |  | $ | 3,467 |  |  | $ | 16,950 |  |  | $ | 72,688 |
Recapture of provision for loan losses |  |  | (70 | ) |  |  | (334 | ) |  |  | (596 | ) |  |  | (1,000 | )
Net interest income after recapture of provision for loan losses |  |  | 52,341 |  |  |  | 3,801 |  |  |  | 17,546 |  |  |  | 73,688 |
Noninterest income |  |  | 5,637 |  |  |  | 47 |  |  |  | 4,011 |  |  |  | 9,695 |
Noninterest expense |  |  | 12,779 |  |  |  | 472 |  |  |  | 21,003 |  |  |  | 34,254 |
Segment pre-tax profit |  | $ | 45,199 |  |  | $ | 3,376 |  |  | $ | 554 |  |  | $ | 49,129 |
Goodwill |  | $ | 116,564 |  |  | $ | - |  |  | $ | - |  |  | $ | 116,564 |
Segment assets as of June 30, 2018 |  | $ | 6,996,216 |  |  | $ | 404,236 |  |  | $ | 693,411 |  |  | $ | 8,093,863 |
| (1) | Includes treasury and administration, as well as the elimination of certain items that are included in more than one department, most of which represents products and services for Centers’ customers. |
|  | For the Three Months Ended June 30, 2017
|  | Centers |  | Dairy & livestock and agribusiness |  | Other (1) |  | Total
|  | (Dollars in thousands)
Net interest income |  | $ | 48,762 |  |  | $ | 2,369 |  |  | $ | 19,352 |  |  | $ | 70,483 |
(Recapture of) provision for loan losses |  |  | 875 |  |  |  | (421 | ) |  |  | (1,454 | ) |  |  | (1,000 | )
Net interest income after (recapture of) provision for loan losses |  |  | 47,887 |  |  |  | 2,790 |  |  |  | 20,806 |  |  |  | 71,483 |
Noninterest income |  |  | 5,303 |  |  |  | 49 |  |  |  | 5,424 |  |  |  | 10,776 |
Noninterest expense |  |  | 13,206 |  |  |  | 504 |  |  |  | 23,163 |  |  |  | 36,873 |
Debt termination expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Segment pre-tax profit |  | $ | 39,984 |  |  | $ | 2,335 |  |  | $ | 3,067 |  |  | $ | 45,386 |
Goodwill |  | $ | 119,193 |  |  | $ | - |  |  | $ | - |  |  | $ | 119,193 |
Segment assets as of June 30, 2017 |  | $ | 7,314,110 |  |  | $ | 348,570 |  |  | $ | 755,523 |  |  | $ | 8,418,203 |
| (1) | Includes treasury and administration, as well as the elimination of certain items that are included in more than one department, most of which represents products and services for Centers’ customers. |
|  | For the Six Months Ended June 30, 2018
|  | Centers |  | Dairy & livestock and agribusiness |  | Other (1) |  | Total
|  | (Dollars in thousands)
Net interest income |  | $ | 101,854 |  |  | $ | 7,318 |  |  | $ | 34,037 |  |  | $ | 143,209 |
(Recapture of) provision for loan losses |  |  | 259 |  |  |  | (315 | ) |  |  | (1,944 | ) |  |  | (2,000 | )
Net interest income after (recapture of) provision for loan losses |  |  | 101,595 |  |  |  | 7,633 |  |  |  | 35,981 |  |  |  | 145,209 |
Noninterest income |  |  | 10,938 |  |  |  | 92 |  |  |  | 11,581 |  |  |  | 22,611 |
Noninterest expense |  |  | 26,004 |  |  |  | 989 |  |  |  | 43,207 |  |  |  | 70,200 |
Debt termination expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Segment pre-tax profit |  | $ | 86,529 |  |  | $ | 6,736 |  |  | $ | 4,355 |  |  | $ | 97,620 |
Goodwill |  | $ | 116,564 |  |  | $ | - |  |  | $ | - |  |  | $ | 116,564 |
Segment assets as of June 30, 2018 |  | $ | 6,996,216 |  |  | $ | 404,236 |  |  | $ | 693,411 |  |  | $ | 8,093,863 |
| (1) | Includes treasury and administration, as well as the elimination of certain items that are included in more than one department, most of which represents products and services for Centers’ customers.
|  | For the Six Months Ended June 30, 2017
|  | Centers |  | Dairy & livestock and agribusiness |  | Other (1) |  | Total
|  | (Dollars in thousands)
Net interest income |  | $ | 94,340 |  |  | $ | 4,513 |  |  | $ | 37,063 |  |  | $ | 135,916 |
(Recapture of) provision for loan losses |  |  | 1,386 |  |  |  | (3,120 | ) |  |  | (3,766 | ) |  |  | (5,500 | )
Net interest income after (recapture of) provision for loan losses |  |  | 92,954 |  |  |  | 7,633 |  |  |  | 40,829 |  |  |  | 141,416 |
Noninterest income |  |  | 10,510 |  |  |  | 104 |  |  |  | 8,884 |  |  |  | 19,498 |
Noninterest expense |  |  | 25,644 |  |  |  | 1,005 |  |  |  | 44,341 |  |  |  | 70,990 |
Debt termination expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Segment pre-tax profit |  | $ | 77,820 |  |  | $ | 6,732 |  |  | $ | 5,372 |  |  | $ | 89,924 |
Goodwill |  | $ | 119,193 |  |  | $ | - |  |  | $ | - |  |  | $ | 119,193 |
Segment assets as of June 30, 2017 |  | $ | 7,314,110 |  |  | $ | 348,570 |  |  | $ | 755,523 |  |  | $ | 8,418,203 |
| (1) | Includes treasury and administration, as well as the elimination of certain items that are included in more than one department, most of which represents products and services for Centers’ customers.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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