Operating Segments

3 Months Ended

Mar. 31, 2016

Operating Segments [Abstract]

Operating Segments

NOTE 9: OPERATING SEGMENTS  

We operate four principal segments:  Oklahoma Banking, Texas Banking, Kansas Banking, and Other Operations.  The Oklahoma Banking segment provides deposit and lending services and consists of residential mortgage lending services to customers. Due to the size and the management structure, our Colorado banking operations are included within the Oklahoma Banking segment.  The Texas Banking segment and the Kansas Banking segment provide deposit and lending services.  Other Operations includes our funds management unit and corporate investments.

The primary purpose of the funds management unit is to manage our overall internal liquidity needs and interest rate risk.  Each segment borrows funds from or provides funds to the funds management unit as needed to support its operations.  The value of funds provided to and the cost of funds borrowed from the funds management unit by each segment are internally priced at rates that approximate market rates for funds with similar duration.  The yield used in the funds transfer pricing curve is a blend of rates based on the volume usage of retail and brokered certificates of deposit and FHLB advances.    

The accounting policies of each reportable segment are the same as ours.  Expenses for consolidated back-office operations are allocated to operating segments based on estimated uses of those services.  General overhead expenses such as executive administration, accounting, and audit are allocated based on the direct expense and/or deposit and loan volumes of the operating segment.  Income tax expense for the operating segments is calculated at statutory rates.  The Other Operations segment records the tax expense or benefit necessary to reconcile to the consolidated financial statements.  The following table summarizes financial results by operating segment:

For the three months ended March 31, 2016
	Oklahoma		Texas		Kansas		Other		Total
(Dollars in thousands)	Banking		Banking		Banking		Operations*		Company
Net interest income (loss)	$	12,938	$	5,566	$	1,828	$	(492)	$	19,840
Provision for loan losses		260		1,915		2,199		1		4,375
Noninterest income		2,195		302		318		600		3,415
Noninterest expenses		9,960		3,731		1,417		888		15,996
Income (loss) before taxes		4,913		222		(1,470)		(781)		2,884
Taxes on income (loss)		1,729		78		(517)		(275)		1,015
Net income (loss)	$	3,184	$	144	$	(953)	$	(506)	$	1,869
* Includes externally generated revenue of $0.9 million, primarily from investing services, and an internally generated loss of $0.8 million from the funds management unit.
Total loans at period end	$	1,060,483	$	560,421	$	160,980	$	-	$	1,781,884
Total assets at period end		1,105,545		556,405		160,031		538,838		2,360,819
Total deposits at period end		1,359,179		195,593		130,283		210,193		1,895,248

For the three months ended March 31, 2015
	Oklahoma		Texas		Kansas		Other		Total
(Dollars in thousands)	Banking		Banking		Banking		Operations*		Company
Net interest income (loss)	$	9,735	$	5,220	$	1,463	$	(808)	$	15,610
Provision (credit) for loan losses		(1,233)		(250)		(403)		(1)		(1,887)
Noninterest income		2,039		309		302		190		2,840
Noninterest expenses		7,345		3,435		1,609		693		13,082
Income (loss) before taxes		5,662		2,344		559		(1,310)		7,255
Taxes on income (loss)		2,123		879		209		(491)		2,720
Net income (loss)	$	3,539	$	1,465	$	350	$	(819)	$	4,535
* Includes externally generated revenue of $0.4 million, primarily from investing services, and an internally generated loss of $1.0 million from the funds management unit.
Total loans at period end	$	814,949	$	478,005	$	145,291	$	-	$	1,438,245
Total assets at period end		828,576		476,075		145,552		552,876		2,003,079
Total deposits at period end		1,132,015		254,665		124,094		105,680		1,616,454