XML 116 R34.htm IDEA: XBRL DOCUMENT v2.4.0.6
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2012
SEGMENT INFORMATION  
SEGMENT INFORMATION

26.          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. The 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 includes 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 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:

 

 

 

Banking

 

 

 

 

 

 

 

 

 

Operations

 

Treasury

 

All Others

 

Total

 

 

 

(Dollars in thousands)

 

Year ended December 31, 2012:

 

 

 

 

 

 

 

 

 

Net interest income

 

$

92,545

 

$

27,166

 

$

—

 

$

119,711

 

Intersegment net interest income (expense)

 

32,954

 

(22,228

)

(10,726

)

—

 

Credit (provision) for loan and lease losses

 

18,885

 

—

 

—

 

18,885

 

Other operating income

 

50,839

 

5,209

 

(304

)

55,744

 

Other operating expense

 

(86,267

)

(1,868

)

(58,784

)

(146,919

)

Administrative and overhead expense allocation

 

(57,640

)

(939

)

58,579

 

—

 

Net income (loss)

 

$

51,316

 

$

7,340

 

$

(11,235

)

$

47,421

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2012

 

 

 

 

 

 

 

 

 

Investment securities

 

$

—

 

$

1,698,593

 

$

—

 

$

1,698,593

 

Loans and leases (including loans held for sale)

 

2,242,227

 

—

 

—

 

2,242,227

 

Other

 

(7,267

)

363,815

 

73,000

 

429,548

 

Total assets

 

$

2,234,960

 

$

2,062,408

 

$

73,000

 

$

4,370,368

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2011:

 

 

 

 

 

 

 

 

 

Net interest income

 

$

95,182

 

$

22,639

 

$

—

 

$

117,821

 

Intersegment net interest income (expense)

 

45,564

 

(18,609

)

(26,955

)

—

 

Credit (provision) for loan and lease losses

 

40,690

 

—

 

—

 

40,690

 

Other operating income

 

41,865

 

7,312

 

1,004

 

50,181

 

Other operating expense

 

(109,089

)

(7,163

)

(55,869

)

(172,121

)

Administrative and overhead expense allocation

 

(54,408

)

(627

)

55,035

 

—

 

Net income (loss)

 

$

59,804

 

$

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)

 

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

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2010:

 

 

 

 

 

 

 

 

 

Net interest income

 

$

111,681

 

$

6,972

 

$

—

 

$

118,653

 

Intersegment net interest income (expense)

 

3,638

 

569

 

(4,207

)

—

 

Credit (provision) for loan and lease losses

 

(159,548

)

—

 

—

 

(159,548

)

Other operating income

 

40,945

 

8,236

 

7,855

 

57,036

 

Goodwill impairment

 

(102,689

)

—

 

—

 

(102,689

)

Other operating expense (excluding goodwill impairment)

 

(107,260

)

(8,059

)

(49,086

)

(164,405

)

Administrative and overhead expense allocation

 

(45,710

)

(426

)

46,136

 

—

 

Net income (loss)

 

$

(258,943

)

$

7,292

 

$

698

 

$

(250,953

)