XML 47 R32.htm IDEA: XBRL DOCUMENT v3.3.1.900
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
SEGMENT INFORMATION
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, consumer 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 net income (loss) 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, 2015
 

 
 

 
 

 
 

Net interest income
$
115,936

 
$
33,592

 
$
—

 
$
149,528

Intersegment net interest income (expense)
43,686

 
(31,576
)
 
(12,110
)
 
—

Credit (provision) for loan and lease losses
15,671

 
—

 
—

 
15,671

Other operating income
23,447

 
967

 
14,570

 
38,984

Other operating expense
(59,273
)
 
(1,859
)
 
(70,095
)
 
(131,227
)
Administrative and overhead expense allocation
(59,266
)
 
(1,042
)
 
60,308

 
—

Income taxes
(28,070
)
 
(29
)
 
1,011

 
(27,088
)
Net income (loss)
$
52,131

 
$
53

 
$
(6,316
)
 
$
45,868

 
 
 
 
 
 
 
 
At December 31, 2015:
 

 
 

 
 

 
 
Investment securities
$
—

 
$
1,520,172

 
$
—

 
$
1,520,172

Loans and leases (including loans held for sale)
3,225,641

 
—

 
—

 
3,225,641

Other
74,963

 
226,172

 
84,340

 
385,475

Total assets
$
3,300,604

 
$
1,746,344

 
$
84,340

 
$
5,131,288

 
 
 
 
 
 
 
 
Year ended December 31, 2014
 

 
 

 
 

 
 
Net interest income
$
108,815

 
$
34,603

 
$
—

 
$
143,418

Intersegment net interest income (expense)
34,308

 
(33,356
)
 
(952
)
 
—

Credit (provision) for loan and lease losses
6,414

 
—

 
—

 
6,414

Other operating income
24,496

 
4,042

 
15,285

 
43,823

Other operating expense
(60,587
)
 
(2,086
)
 
(70,140
)
 
(132,813
)
Administrative and overhead expense allocation
(59,610
)
 
(1,126
)
 
60,736

 
—

Income taxes
(18,843
)
 
(727
)
 
(819
)
 
(20,389
)
Net income
$
34,993

 
$
1,350

 
$
4,110

 
$
40,453

 
 
 
 
 
 
 
 
At December 31, 2014:
 

 
 

 
 

 
 
Investment securities
$
—

 
$
1,467,305

 
$
—

 
$
1,467,305

Loans and leases (including loans held for sale)
2,941,881

 
—

 
—

 
2,941,881

Other
111,071

 
248,455

 
84,275

 
443,801

Total assets
$
3,052,952

 
$
1,715,760

 
$
84,275

 
$
4,852,987

 
 
 
 
 
 
 
 
Year ended December 31, 2013
 

 
 

 
 

 
 
Net interest income
$
101,282

 
$
31,827

 
$
—

 
$
133,109

Intersegment net interest income (expense)
16,947

 
(30,675
)
 
13,728

 
—

Credit (provision) for loan and lease losses
11,310

 
—

 
—

 
11,310

Other operating income
26,140

 
3,137

 
25,668

 
54,945

Other operating expense
(58,891
)
 
(3,788
)
 
(76,857
)
 
(139,536
)
Administrative and overhead expense allocation
(54,851
)
 
(2,004
)
 
56,855

 
—

 
117,088

 
218

 
(5,059
)
 
112,247

Net income (loss)
$
159,025

 
$
(1,285
)
 
$
14,335

 
$
172,075