XML 26 R33.htm IDEA: XBRL DOCUMENT v2.4.0.8
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2013
SEGMENT INFORMATION  
SEGMENT INFORMATION

25.          SEGMENT INFORMATION

 

We 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, 2013:

 

 

 

 

 

 

 

 

 

Net interest income

 

$

101,822

 

$

31,287

 

$

—

 

$

133,109

 

Intersegment net interest income (expense)

 

14,761

 

(27,807

)

13,046

 

—

 

Credit (provision) for loan and lease losses

 

11,310

 

—

 

—

 

11,310

 

Other operating income

 

49,294

 

4,185

 

1,466

 

54,945

 

Other operating expense

 

(79,552

)

(3,938

)

(56,046

)

(139,536

)

Administrative and overhead expense allocation

 

(55,052

)

(937

)

55,989

 

—

 

Income taxes

 

117,088

 

218

 

(5,059

)

112,247

 

Net income

 

$

159,671

 

$

3,008

 

$

9,396

 

$

172,075

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2013:

 

 

 

 

 

 

 

 

 

Investment securities

 

$

—

 

$

1,660,046

 

$

—

 

$

1,660,046

 

Loans and leases (including loans held for sale)

 

2,642,971

 

—

 

—

 

2,642,971

 

Other

 

108,639

 

257,032

 

72,510

 

438,181

 

Total assets

 

$

2,751,610

 

$

1,917,078

 

$

72,510

 

$

4,741,198

 

 

 

 

 

 

 

 

 

 

 

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

 

55,838

 

5,209

 

(304

)

60,743

 

Other operating expense

 

(91,266

)

(1,868

)

(58,784

)

(151,918

)

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

 

48,686

 

7,312

 

1,004

 

57,002

 

Other operating expense

 

(115,910

)

(7,163

)

(55,869

)

(178,942

)

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