| Segment Reporting |
NOTE 21: SEGMENT REPORTING
In 2016, 2015, and 2014 the Company had two reportable business segments: Banking (FFB) and Wealth Management (FFA). The results of FFI and any elimination entries are included in the column labeled Other. The reportable segments are determined by products and services offered and the corporate structure. Business segment earnings before taxes are the primary measure of the segment's performance as evaluated by management. Business segment earnings before taxes include direct revenue and expenses of the segment as well as corporate and inter-company cost allocations. Allocations of corporate expenses, such as finance and accounting, data processing and human resources, are calculated based on estimated activity or usage levels. The management accounting process measures the performance of the operating segments based on the Company's management structure and is not necessarily comparable with similar information for other financial services companies. If the management structures and/or the allocation process changes, allocations, transfers and assignments may change. The following tables show key operating results for each of our business segments used to arrive at our consolidated totals for the years ended December 31:
|
(dollars in thousands) |
|
Banking |
|
|
Wealth
Management |
|
|
Other |
|
|
Total |
|
|
2016: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
100,642 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
100,642 |
|
|
Interest expense |
|
|
11,193 |
|
|
|
— |
|
|
|
— |
|
|
|
11,193 |
|
|
Net interest income |
|
|
89,449 |
|
|
|
— |
|
|
|
— |
|
|
|
89,449 |
|
|
Provision for loan losses |
|
|
4,681 |
|
|
|
— |
|
|
|
— |
|
|
|
4,681 |
|
|
Noninterest income |
|
|
13,832 |
|
|
|
21,348 |
|
|
|
(620 |
) |
|
|
34,560 |
|
|
Noninterest expense |
|
|
58,422 |
|
|
|
19,232 |
|
|
|
3,340 |
|
|
|
80,994 |
|
|
Income (loss) before taxes on income |
|
$ |
40,178 |
|
|
$ |
2,116 |
|
|
$ |
(3,960 |
) |
|
$ |
38,334 |
|
|
2015: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
64,471 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
64,471 |
|
|
Interest expense |
|
|
5,607 |
|
|
|
— |
|
|
|
674 |
|
|
|
6,281 |
|
|
Net interest income |
|
|
58,864 |
|
|
|
— |
|
|
|
(674 |
) |
|
|
58,190 |
|
|
Provision for loan losses |
|
|
2,673 |
|
|
|
— |
|
|
|
— |
|
|
|
2,673 |
|
|
Noninterest income |
|
|
8,833 |
|
|
|
20,530 |
|
|
|
(590 |
) |
|
|
28,773 |
|
|
Noninterest expense |
|
|
39,982 |
|
|
|
18,352 |
|
|
|
3,124 |
|
|
|
61,458 |
|
|
Income (loss) before taxes on income |
|
$ |
25,042 |
|
|
$ |
2,178 |
|
|
$ |
(4,388 |
) |
|
$ |
22,832 |
|
|
2014: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
47,398 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
47,398 |
|
|
Interest expense |
|
|
3,844 |
|
|
|
— |
|
|
|
740 |
|
|
|
4,584 |
|
|
Net interest income |
|
|
43,554 |
|
|
|
— |
|
|
|
(740 |
) |
|
|
42,814 |
|
|
Provision for loan losses |
|
|
235 |
|
|
|
— |
|
|
|
— |
|
|
|
235 |
|
|
Noninterest income |
|
|
5,866 |
|
|
|
19,422 |
|
|
|
(539 |
) |
|
|
24,749 |
|
|
Noninterest expense |
|
|
30,509 |
|
|
|
17,979 |
|
|
|
4,019 |
|
|
|
52,507 |
|
|
Income (loss) before taxes on income |
|
$ |
18,676 |
|
|
$ |
1,443 |
|
|
$ |
(5,298 |
) |
|
$ |
14,821 |
|
The following tables show the financial position for each of our business segments, and of FFI which is included in the column labeled Other, and the eliminating entries used to arrive at our consolidated totals at December 31:
|
(dollars in thousands) |
|
Banking |
|
|
Wealth
Management |
|
|
Other |
|
|
Eliminations |
|
|
Total |
|
|
2016: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
597,795 |
|
|
$ |
2,576 |
|
|
$ |
6,318 |
|
|
$ |
(8,743 |
) |
|
$ |
597,946 |
|
|
Securities AFS |
|
|
509,578 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
509,578 |
|
|
Loans Held For Sale |
|
|
250,942 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
250,942 |
|
|
Loans, net |
|
|
2,540,309 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,540,309 |
|
|
Premises and equipment |
|
|
5,603 |
|
|
|
991 |
|
|
|
136 |
|
|
|
— |
|
|
|
6,730 |
|
|
FHLB Stock |
|
|
33,750 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
33,750 |
|
|
Deferred taxes |
|
|
16,602 |
|
|
|
283 |
|
|
|
(74 |
) |
|
|
— |
|
|
|
16,811 |
|
|
REO |
|
|
1,734 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,734 |
|
|
Goodwill and Intangibles |
|
|
2,177 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,177 |
|
|
Other assets |
|
|
13,270 |
|
|
|
445 |
|
|
|
274,256 |
|
|
|
(272,545 |
) |
|
|
15,426 |
|
|
Total assets |
|
$ |
3,971,760 |
|
|
$ |
4,295 |
|
|
$ |
280,636 |
|
|
$ |
(281,288 |
) |
|
$ |
3,975,403 |
|
|
Deposits |
|
$ |
2,435,538 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(8,743 |
) |
|
$ |
2,426,795 |
|
|
Borrowings |
|
|
1,250,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,250,000 |
|
|
Intercompany balances |
|
|
3,019 |
|
|
|
539 |
|
|
|
(3,558 |
) |
|
|
— |
|
|
|
— |
|
|
Other liabilities |
|
|
11,670 |
|
|
|
2,744 |
|
|
|
(70 |
) |
|
|
— |
|
|
|
14,344 |
|
|
Shareholders’ equity |
|
|
271,533 |
|
|
|
1,012 |
|
|
|
284,264 |
|
|
|
(272,545 |
) |
|
|
284,264 |
|
|
Total liabilities and equity |
|
$ |
3,971,760 |
|
|
$ |
4,295 |
|
|
$ |
280,636 |
|
|
$ |
(281,288 |
) |
|
$ |
3,975,403 |
|
|
2015: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
215,671 |
|
|
$ |
5,682 |
|
|
$ |
42,151 |
|
|
$ |
(47,756 |
) |
|
$ |
215,748 |
|
|
Securities AFS |
|
|
565,135 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
565,135 |
|
|
Loans, net |
|
|
1,754,883 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,754,883 |
|
|
Premises and equipment |
|
|
1,996 |
|
|
|
545 |
|
|
|
112 |
|
|
|
— |
|
|
|
2,653 |
|
|
FHLB Stock |
|
|
21,492 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21,492 |
|
|
Deferred taxes |
|
|
14,466 |
|
|
|
630 |
|
|
|
296 |
|
|
|
— |
|
|
|
15,392 |
|
|
REO |
|
|
4,036 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,036 |
|
|
Goodwill and Intangibles |
|
|
2,416 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,416 |
|
|
Other assets |
|
|
8,645 |
|
|
|
314 |
|
|
|
217,032 |
|
|
|
(215,167 |
) |
|
|
10,824 |
|
|
Total assets |
|
$ |
2,588,740 |
|
|
$ |
7,171 |
|
|
$ |
259,591 |
|
|
$ |
(262,923 |
) |
|
$ |
2,592,579 |
|
|
Deposits |
|
$ |
1,569,932 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(47,756 |
) |
|
$ |
1,522,176 |
|
|
Borrowings |
|
|
796,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
796,000 |
|
|
Intercompany balances |
|
|
2,748 |
|
|
|
121 |
|
|
|
(2,869 |
) |
|
|
— |
|
|
|
— |
|
|
Other liabilities |
|
|
9,309 |
|
|
|
2,634 |
|
|
|
2,724 |
|
|
|
— |
|
|
|
14,667 |
|
|
Shareholders’ equity |
|
|
210,751 |
|
|
|
4,416 |
|
|
|
259,736 |
|
|
|
(215,167 |
) |
|
|
259,736 |
|
|
Total liabilities and equity |
|
$ |
2,588,740 |
|
|
$ |
7,171 |
|
|
$ |
259,591 |
|
|
$ |
(262,923 |
) |
|
$ |
2,592,579 |
|
|