XML 20 R24.htm IDEA: XBRL DOCUMENT v2.4.0.6
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2012
SEGMENT INFORMATION [Abstract]  
SEGMENT INFORMATION
18.  SEGMENT INFORMATION
 
Due to recent changes in our organizational structure, in the first quarter of 2012, we changed our reportable segments to better align our segments with how management reviews and monitors the performance of the Company's financial results. We now have the following three reportable segments: Banking Operations, Treasury and All Others. These segments are consistent with our internal functional reporting lines and are managed separately because each unit has different target markets, technological requirements, marketing strategies and specialized skills.

The Banking Operations segment includes construction and real estate development lending, commercial lending, residential mortgage lending and servicing, indirect auto lending, trust services, retail brokerage services and our retail branch offices, which provide 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 segment consists of all activities not captured by the Banking Operations or Treasury segments described above and includes activities such as electronic banking, data processing and management of bank owned properties.

The accounting policies of the segments are consistent with the Company's accounting policies that are described in Note 1 to the consolidated financial statements in the Annual Report on Form 10-K for the year ended December 31, 2011 filed with the SEC. 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.
 
 
Banking
          
 
Operations
  
Treasury
  
All Others
  
Total
 
 (Dollars in thousands)
Three months ended March 31, 2012:
           
   Net interest income
$23,237  $7,265  $-  $30,502 
   Intersegment net interest income (expense)
 12,416   (5,857)  (6,559)  - 
   Credit for loan and lease losses
 4,990   -   -   4,990 
   Other operating income
 12,336   1,086   (190)  13,232 
   Other operating expense
 (21,844)  (398)  (13,004)  (35,246)
   Administrative and overhead expense allocation
 (12,754)  (196)  12,950   - 
      Net income (loss)
$18,381  $1,900  $(6,803) $13,478 
                 
Three months ended March 31, 2011:
               
   Net interest income
$24,424  $3,777  $-  $28,201 
   Intersegment net interest income (expense)
 10,426   (1,223)  (9,203)  - 
   Credit for loan and lease losses
 1,575   -   -   1,575 
   Other operating income
 10,375   1,639   486   12,500 
   Other operating expense
 (25,446)  (89)  (12,102)  (37,637)
   Administrative and overhead expense allocation
 (11,702)  (125)  11,827   - 
      Net income (loss)
$9,652  $3,979  $(8,992) $4,639 
                 
 At March 31, 2012:
               
    Investment securities
$-  $1,646,656  $-  $1,646,656 
    Loans and leases (including loans held for sale)
 2,082,752   -   -   2,082,752 
    Other
 40,400   304,323   84,157   428,880 
       Total assets
$2,123,152  $1,950,979  $84,157  $4,158,288 
                 
 At December 31, 2011:
               
    Investment securities
$-  $1,493,925  $-  $1,493,925 
    Loans and leases (including loans held for sale)
 2,114,737   -   -   2,114,737 
    Other
 23,858   429,141   71,204   524,203 
       Total assets
$2,138,595  $1,923,066  $71,204  $4,132,865