XML 37 R25.htm IDEA: XBRL DOCUMENT v3.5.0.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
 
We 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, 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, 2015 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 and assets are provided in the following table for the periods indicated.

(dollars in thousands)
Banking
Operations
 
Treasury
 
All Others
 
Total
Three Months Ended June 30, 2016
 

 
 

 
 

 
 

Net interest income
$
31,985

 
$
7,624

 
$
—

 
$
39,609

Inter-segment net interest income (expense)
9,435

 
(6,900
)
 
(2,535
)
 
—

Credit for loan and lease losses
1,382

 
—

 
—

 
1,382

Other operating income
6,493

 
1,397

 
3,802

 
11,692

Other operating expense
(14,904
)
 
(439
)
 
(18,872
)
 
(34,215
)
Administrative and overhead expense allocation
(16,709
)
 
(194
)
 
16,903

 
—

Income before taxes
17,682

 
1,488

 
(702
)
 
18,468

Income tax (expense) benefit
(6,078
)
 
(513
)
 
260

 
(6,331
)
Net income (loss)
$
11,604

 
$
975

 
$
(442
)
 
$
12,137


(dollars in thousands)
Banking
Operations
 
Treasury
 
All Others
 
Total
Three Months Ended June 30, 2015
 

 
 

 
 

 
 

Net interest income
$
28,837

 
$
8,457

 
$
—

 
$
37,294

Inter-segment net interest income (expense)
11,348

 
(8,067
)
 
(3,281
)
 
—

Credit for loan and lease losses
7,319

 
—

 
—

 
7,319

Other operating income
6,008

 
(1,322
)
 
3,438

 
8,124

Other operating expense
(15,354
)
 
(493
)
 
(16,611
)
 
(32,458
)
Administrative and overhead expense allocation
(15,937
)
 
(266
)
 
16,203

 
—

Income before taxes
22,221

 
(1,691
)
 
(251
)
 
20,279

Income tax (expense) benefit
(7,776
)
 
591

 
(759
)
 
(7,944
)
Net income (loss)
$
14,445

 
$
(1,100
)
 
$
(1,010
)
 
$
12,335

(dollars in thousands)
Banking
Operations
 
Treasury
 
All Others
 
Total
Six Months Ended June 30, 2016
 

 
 

 
 

 
 

Net interest income
$
62,936

 
$
15,884

 
$
—

 
$
78,820

Inter-segment net interest income (expense)
19,993

 
(13,917
)
 
(6,076
)
 
—

Credit for loan and lease losses
2,129

 
—

 
—

 
2,129

Other operating income
12,027

 
2,142

 
7,688

 
21,857

Other operating expense
(29,647
)
 
(827
)
 
(36,616
)
 
(67,090
)
Administrative and overhead expense allocation
(28,141
)
 
(390
)
 
28,531

 
—

Income before taxes
39,297

 
2,892

 
(6,473
)
 
35,716

Income tax (expense) benefit
(13,644
)
 
(1,004
)
 
2,250

 
(12,398
)
Net income (loss)
$
25,653

 
$
1,888

 
$
(4,223
)
 
$
23,318

(dollars in thousands)
Banking
Operations
 
Treasury
 
All Others
 
Total
Six Months Ended June 30, 2015
 

 
 

 
 

 
 

Net interest income
$
56,691

 
$
16,838

 
$
—

 
$
73,529

Inter-segment net interest income (expense)
21,650

 
(16,765
)
 
(4,885
)
 
—

Credit for loan and lease losses
10,066

 
—

 
—

 
10,066

Other operating income
12,454

 
(295
)
 
7,155

 
19,314

Other operating expense
(30,178
)
 
(971
)
 
(35,327
)
 
(66,476
)
Administrative and overhead expense allocation
(28,041
)
 
(554
)
 
28,595

 
—

Income before taxes
42,642

 
(1,747
)
 
(4,462
)
 
36,433

Income tax (expense) benefit
(14,924
)
 
611

 
610

 
(13,703
)
Net income
$
27,718

 
$
(1,136
)
 
$
(3,852
)
 
$
22,730


(dollars in thousands)
Banking
Operations
 
Treasury
 
All Others
 
Total
At June 30, 2016:
 
 
 
 
 
 
 
Investment securities
$
—

 
$
1,494,823

 
$
—

 
$
1,494,823

Loans and leases (including loans held for sale)
3,413,868

 
—

 
—

 
3,413,868

Other
49,802

 
235,554

 
88,920

 
374,276

Total assets
$
3,463,670

 
$
1,730,377

 
$
88,920

 
$
5,282,967


(dollars in thousands)
Banking
Operations
 
Treasury
 
All Others
 
Total
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