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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2011
SEGMENT INFORMATION [Abstract]  
SEGMENT INFORMATION
 
26.
SEGMENT INFORMATION

We have four reportable segments as follows: (1) Commercial Real Estate, (2) Hawaii Market, (3) Treasury, (4) Other. The segments reported are consistent with internal functional reporting lines and are managed separately because each unit has different target markets, technological requirements, marketing strategies and specialized skills.

The Commercial Real Estate segment includes construction and real estate development lending in the markets we serve. The Hawaii Market segment includes retail branch offices, commercial lending, residential mortgage lending and servicing, indirect auto lending, trust services and retail brokerage services, and provides for a full range of deposit and loan products, as well as various other banking services. The Treasury segment is responsible for managing the Company's investment securities portfolio and wholesale funding activities. The All Others category includes activities such as electronic banking, data processing and management of bank owned properties.

The accounting policies of the segments are consistent with those described in Note 1. The majority of the Company's net income is derived from net interest income. Accordingly, management focuses primarily on net interest income, rather than gross interest income and expense amounts, in evaluating segment profitability.

Intersegment net interest income (expense) was allocated to each segment based upon a funds transfer pricing process that assigns costs of funds to assets and earnings credits to liabilities based on market interest rates that reflect interest rate sensitivity and maturity characteristics. All administrative and overhead expenses are allocated to the segments at cost. Cash, investment securities, loans and leases and their related balances are allocated to the segment responsible for acquisition and maintenance of those assets. Segment assets also include all premises and equipment used directly in segment operations.
 
Segment profits (losses) and assets are provided in the following table for the periods indicated:
 
 
Commercial
  
Hawaii
     All    
 
Real Estate
  
Market
  
Treasury
  
Others
  
Total
 
 
(Dollars in thousands)
 
 Year ended December 31, 2011:
              
    Net interest income
$26,235  $68,947  $22,639  $-  $117,821 
    Intersegment net interest income (expense)
 (16,303)  61,867   (18,609)  (26,955)  - 
    Credit (provision) for loan and lease losses
 40,957   (267)  -   -   40,690 
    Other operating income
 2,578   39,287   7,312   1,004   50,181 
    Other operating expense
 (16,822)  (92,267)  (7,163)  (55,869)  (172,121)
    Administrative and overhead expense allocation
 (4,196)  (50,212)  (627)  55,035   - 
    Net income (loss)
$32,449  $27,355  $3,552  $(26,785) $36,571 
                     
 At December 31, 2011
                   
    Investment securities
$-  $-  $1,493,925  $-  $1,493,925 
    Loans and leases (including loans held for sale)
 512,051   1,602,686   -   -   2,114,737 
    Other
 13,421   10,437   429,141   71,204   524,203 
    Total assets
$525,472  $1,613,123  $1,923,066  $71,204  $4,132,865 
                     
 Year ended December 31, 2010:
                   
    Net interest income
$43,632  $68,049  $6,972  $-  $118,653 
    Intersegment net interest income (expense)
 (30,446)  34,084   569   (4,207)  - 
    Provision for loan and lease losses
 (116,416)  (43,132)  -   -   (159,548)
    Other operating income
 1,007   39,938   8,236   7,855   57,036 
    Goodwill impairment
 -   (102,689)  -   -   (102,689)
    Other operating expense (excluding goodwill impairment)
 (22,182)  (85,078)  (8,059)  (49,086)  (164,405)
    Administrative and overhead expense allocation
 (5,021)  (40,689)  (426)  46,136   - 
    Net income (loss)
$(129,426) $(129,517) $7,292  $698  $(250,953)
                     
 At December 31, 2010
                   
    Investment securities
$-  $-  $705,345  $-  $705,345 
    Loans and leases (including loans held for sale)
 699,344   1,539,848   -   -   2,239,192 
    Other
 (49,396)  6,228   958,665   78,017   993,514 
    Total assets
$649,948  $1,546,076  $1,664,010  $78,017  $3,938,051 
                     
 Year ended December 31, 2009:
                   
    Net interest income
$86,739  $66,939  $20,844  $-  $174,522 
    Intersegment net interest income (expense)
 (49,969)  54,330   (13,525)  9,164   - 
    Provision for loan and lease losses
 (304,076)  (44,725)  -   -   (348,801)
    Other operating income
 1,198   44,084   7,937   4,194   57,413 
    Goodwill impairment
 -   (50,000)  -   -   (50,000)
    Other operating expense (excluding goodwill impairment)
 (29,394)  (85,902)  (2,921)  (48,659)  (166,876)
    Administrative and overhead expense allocation
 (5,072)  (37,068)  (357)  42,497   - 
    Income taxes
 16,588   6,271   (1,795)  (1,069)  19,995 
    Net income (loss)
$(283,986) $(46,071) $10,183  $6,127  $(313,747)