Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Reporting

24. Segment Reporting

The Company has identified two segments for purposes of financial reporting: Banking and Mortgage Banking. In addition, the Company utilizes an Other category. These segments were determined based on the products and services provided or the type of customers served and are consistent with the information that is used by the Company's key decision makers to make operating decisions and to assess the Company's performance.

The Banking operating segment includes commercial banking, asset based lending, retail banking and all other functions that support those units. The Mortgage Banking operating segment originates mortgage loans for sale to investors and for the Company's portfolio through its retail and broker channels. This segment also services residential mortgage loans for various investors and for loans owned by the Company. The Other segment includes subordinated debt expense, certain parent company activities and residual income tax expense, representing the difference between the actual amount incurred and the amount allocated to operating segments. The income tax benefit due to the reversal of the Company's net deferred tax asset valuation allowance is included in the Other segment.

The accounting policies of the individual operating segments are generally the same as those of the Company described in Note 1—Summary of Significant Accounting and Reporting Policies. Segment results are presented based on our management accounting practices. The information presented in our segment reporting is based on internal allocations, which involve management judgment. The application and development of management reporting methodologies is a dynamic process and is subject to periodic adjustments and enhancements.

The following table presents financial information from the Company's operating segments for the periods ended December 31, 2011 and December 31, 2010. There are no results presented for the period ended December 31, 2009 as Cole Taylor Mortgage was first established in January 2010.

	Banking					Mortgage Banking				Other						Consolidated Taylor Capital Group, Inc. Total
	(in thousands)
As of December 31:	2011		2010			2011		2010		2011			2010			2011			2010
Net interest income	$	144,317	$	146,916		$	5,703	$	2,953	$	(15,606	)	$	(13,795	)	$	134,414		$	136,074
Provision for loan losses		48,849		143,127			409		—		—			—			49,258			143,127
Total noninterest income		28,385		58,235			20,390		14,263		467			185			49,242			72,683
Total noninterest expense		92,543		103,790			23,850		14,446		—			—			116,393			118,236
Income (loss) before income taxes		31,310		(41,766	)		1,834		2,770		(15,139	)		(13,610	)		18,005			(52,606	)
Income tax expense (benefit)		11,898		(15,871	)		697		1,052		(85,705	)		16,036			(73,110	)		1,217
Net income (loss)	$	19,412	$	(25,895	)	$	1,137	$	1,718	$	70,566		$	(29,646	)	$	91,115		$	(53,823	)
Total average assets	$	4,225,504	$	4,410,826		$	187,825	$	76,624	$	3,673		$	5,963		$	4,417,002		$	4,493,413
Average loans		2,781,513		2,963,044			170,439		71,854		—			—			2,951,952			3,034,898

The Other category includes subordinated debt expense, certain parent company activities and residual income tax expense, representing the difference between the actual amount incurred and the amount allocated to operating segments. The income tax benefit due to the reversal of the Company's net deferred tax asset valuation allowance is included in the Other category.