Business Segments

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Business Segments

21. BUSINESS SEGMENTS

The Company has identified two principal reportable segments: Business Financial and Commercial Banking Centers (“Centers”) and the Treasury Department. The Company’s subsidiary bank has 40 Business Financial Centers and six Commercial Banking Centers organized in geographic regions, which are the focal points for customer sales and services. The Company utilizes an internal reporting system to measure the performance of various operating segments within the Bank which is the basis for determining the Bank’s reportable segments. The chief operating decision maker (currently our CEO) regularly reviews the financial information of these segments in deciding how to allocate resources and to assess performance. Business Financial and Commercial Banking Centers are considered one operating segment as their products and services are similar and are sold to similar types of customers, have similar production and distribution processes, have similar economic characteristics, and have similar reporting and organizational structures. The Treasury Department’s primary focus is managing the Bank’s investments, liquidity, and interest rate risk. Information related to the Company’s remaining operating segments, which include construction lending, dairy & livestock and agribusiness lending, leasing, CitizensTrust, and centralized functions have been aggregated and included in “Other.” In addition, the Company allocates internal funds transfer pricing to the segments using a methodology that charges users of funds interest expense and credits providers of funds interest income with the net effect of this allocation being recorded in administration.

The following table represents the selected financial information for these two business segments. GAAP does not have an authoritative body of knowledge regarding the management accounting used in presenting segment financial information. The accounting policies for each of the business units is the same as those policies identified for the consolidated Company and disclosed in Note 3—Summary of Significant Accounting Policies. The income numbers represent the actual income and expenses of each business unit. In addition, each segment has allocated income and expenses based on management’s internal reporting system, which allows management to determine the performance of each of its business units. Loan fees included in the Centers category are the actual loan fees paid to the Company by its customers. These fees are eliminated and deferred in the “Other” category, resulting in deferred loan fees for the consolidated financial statements. All income and expense items not directly associated with the two business segments are grouped in the “Other” category. Future changes in the Company’s management structure or reporting methodologies may result in changes in the measurement of operating segment results.

The following tables present the operating results and other key financial measures for the individual operating segments for the periods indicated:

	For the Year Ended December 31, 2014
	Centers		Treasury		Other			Eliminations			Total
	(Dollars in thousands)
Interest income, including loan fees	$	142,467	$	71,369	$	39,067		$	—		$	252,903
Credit for funds provided (1)		31,188		—		46,770			(77,958	)		—
Total interest income		173,655		71,369		85,837			(77,958	)		252,903
Interest expense		6,494		9,590		305			—			16,389
Charge for funds used (1)		5,123		54,885		17,950			(77,958	)		—
Total interest expense		11,617		64,475		18,255			(77,958	)		16,389
Net interest income		162,038		6,894		67,582			—			236,514
Provision for loan losses		—		—		(16,100	)		—			(16,100	)
Net interest income after provision for loan losses		162,038		6,894		83,682			—			252,614
Noninterest income		20,513		—		15,899			—			36,412
Noninterest expense		47,871		784		77,574			—			126,229
Debt termination expense		—		—		—			—			—
Segment pre-tax profit	$	134,680	$	6,110	$	22,007		$	—		$	162,797
Segment assets as of December 31, 2014	$	6,006,415	$	3,268,551	$	753,068		$	(2,650,114)		$	7,377,920

(1) Credit for funds provided and charges for funds used are eliminated in the consolidated presentation.

	For the Year Ended December 31, 2013
	Centers		Treasury			Other			Eliminations			Total
	(Dollars in thousands)
Interest income, including loan fees	$	139,369	$	53,234		$	40,170		$	—		$	232,773
Credit for funds provided (1)		26,754		—			41,987			(68,741	)		—
Total interest income		166,123		53,234			82,157			(68,741	)		232,773
Interest expense		6,138		9,700			670			—			16,507
Charge for funds used (1)		3,193		45,269			20,279			(68,741	)		—
Total interest expense		9,331		54,969			20,949			(68,741	)		16,507
Net interest income		156,793		(1,735	)		61,208			—			216,266
Provision for loan losses		—		—			(16,750	)		—			(16,750	)
Net interest income after provision for loan losses		156,793		(1,735	)		77,958			—			233,016
Noninterest income		20,733		2,094			2,460			—			25,287
Noninterest expense		45,268		714			68,046			—			114,028
Debt termination expense		—		—			—			—			—
Segment pre-tax profit	$	132,258	$	(355	)	$	12,372		$	—		$	144,275
Segment assets as of December 31, 2013	$	5,405,939	$	2,866,760		$	710,844		$	(2,318,576)		$	6,664,967

(1) Credit for funds provided and charges for funds used are eliminated in the consolidated presentation.

	For the Year Ended December 31, 2012
	Centers		Treasury			Other			Eliminations			Total
	(Dollars in thousands)
Interest income, including loan fees	$	147,726	$	56,559		$	57,937		$	—		$	262,222
Credit for funds provided (1)		25,764		—			31,505			(57,269	)		—
Total interest income		173,490		56,559			89,442			(57,269	)		262,222
Interest expense		7,162		15,396			2,714			—			25,272
Charge for funds used (1)		3,204		41,270			12,795			(57,269	)		—
Total interest expense		10,366		56,666			15,509			(57,269	)		25,272
Net interest income		163,124		(107	)		73,933			—			236,950
Provision for loan losses		—		—			—			—			—
Net interest income after provision for loan losses		163,124		(107	)		73,933			—			236,950
Noninterest income		22,807		—			(6,904	)		—			15,903
Noninterest expense		44,780		729			72,272			—			117,781
Debt termination expense		—		20,379			—			—			20,379
Segment pre-tax profit	$	141,151	$	(21,215	)	$	(5,243	)	$	—		$	114,693
Segment assets as of December 31, 2012	$	5,196,244	$	2,642,445		$	637,976		$	(2,113,301)		$	6,363,364

(1) Credit for funds provided and charges for funds used are eliminated in the consolidated presentation.