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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
SEGMENT INFORMATION
18. 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 - Summary of Significant Accounting Policies to the consolidated financial statements in the Annual Report on Form 10-K for the year ended December 31, 2016 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 March 31, 2017
 

 
 

 
 

 
 

Net interest income
$
34,090

 
$
7,165

 
$
—

 
$
41,255

Inter-segment net interest income (expense)
7,927

 
(6,190
)
 
(1,737
)
 
—

Credit for loan and lease losses
80

 
—

 
—

 
80

Other operating income
5,724

 
1,261

 
3,029

 
10,014

Other operating expense
(15,018
)
 
(388
)
 
(16,054
)
 
(31,460
)
Administrative and overhead expense allocation
(13,704
)
 
(202
)
 
13,906

 
—

Income before taxes
19,099

 
1,646

 
(856
)
 
19,889

Income tax (expense) benefit
(6,540
)
 
(564
)
 
294

 
(6,810
)
Net income (loss)
$
12,559

 
$
1,082

 
$
(562
)
 
$
13,079


(dollars in thousands)
Banking
Operations
 
Treasury
 
All Others
 
Total
Three Months Ended March 31, 2016
 

 
 

 
 

 
 

Net interest income
$
30,951

 
$
8,260

 
$
—

 
$
39,211

Inter-segment net interest income (expense)
10,558

 
(7,017
)
 
(3,541
)
 
—

Credit for loan and lease losses
747

 
—

 
—

 
747

Other operating income
5,534

 
745

 
2,377

 
8,656

Other operating expense
(14,743
)
 
(388
)
 
(16,235
)
 
(31,366
)
Administrative and overhead expense allocation
(15,750
)
 
(196
)
 
15,946

 
—

Income before taxes
17,297

 
1,404

 
(1,453
)
 
17,248

Income tax (expense) benefit
(6,054
)
 
(491
)
 
478

 
(6,067
)
Net income (loss)
$
11,243

 
$
913

 
$
(975
)
 
$
11,181

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(dollars in thousands)
Banking
Operations
 
Treasury
 
All Others
 
Total
At March 31, 2017:
 
 
 
 
 
 
 
Investment securities
$
—

 
$
1,514,315

 
$
—

 
$
1,514,315

Loans and leases (including loans held for sale)
3,555,623

 
—

 
—

 
3,555,623

Other
44,175

 
252,283

 
76,785

 
373,243

Total assets
$
3,599,798

 
$
1,766,598

 
$
76,785

 
$
5,443,181



(dollars in thousands)
Banking
Operations
 
Treasury
 
All Others
 
Total
At December 31, 2016:
 
 
 
 
 
 
 
Investment securities
$
—

 
$
1,461,515

 
$
—

 
$
1,461,515

Loans and leases (including loans held for sale)
3,556,771

 
—

 
—

 
3,556,771

Other
56,482

 
241,387

 
68,081

 
365,950

Total assets
$
3,613,253

 
$
1,702,902

 
$
68,081

 
$
5,384,236