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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2014
SEGMENT INFORMATION  
SEGMENT INFORMATION
NOTE 20 — SEGMENT INFORMATION
 
The Company utilizes an internal reporting system to measure the performance of various operating segments within the Bank and the Company. The Company has identified three operating segments for purposes of management reporting: 1) Retail Banking; 2) Commercial Banking; and 3) Other. These three business divisions meet the criteria of an operating segment: the segment engages in business activities from which it earns revenues and incurs expenses and whose operating results are regularly reviewed by the Company’s chief operating decision-maker to render decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available. The acquisition of MetroCorp has been reflected in the three business operating segments, as applicable, as of December 31, 2014.
 
The Retail Banking segment focuses primarily on retail operations through the Bank’s branch network. The Commercial Banking segment, which includes CRE, primarily generates commercial loans through the efforts of the commercial lending offices located in the Bank’s production offices. Furthermore, the Company’s Commercial Banking segment also offers a wide variety of international finance and trade services and products. The remaining centralized functions, including treasury activities and eliminations of inter-segment amounts, have been aggregated and included in the Other segment, which provides broad administrative support to the two core segments.
 
The Company’s funds transfer pricing assumptions are intended to promote core deposit growth and to reflect the current risk profiles of various loan categories within the credit portfolio. Transfer pricing assumptions and methodologies are reviewed at least annually to ensure that the Company’s process is reflective of current market conditions. The transfer pricing process is formulated with the goal of incenting loan and deposit growth that is consistent with the Company’s overall growth objectives as well as to provide a reasonable and consistent basis for the measurement of the Company’s business segments and product net interest margins.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Operating segment results are based on the Company’s internal management reporting process, which reflects assignments and allocations of certain operating and administrative costs and the provision for loan losses. Net interest income is based on the Company’s internal funds transfer pricing system which assigns a cost of funds or a credit for funds to assets or liabilities based on their type, maturity or repricing characteristics. Noninterest income and noninterest expense, including depreciation and amortization, directly attributable to a segment are assigned to that business segment. Indirect costs, including overhead expense, are allocated to the segments based on several factors, including, but not limited to, full-time equivalent employees, loan volume and deposit volume. The provision for credit losses is allocated based on actual charge-offs for the period as well as average loan balances for each segment during the period. The Company evaluates overall performance based on profit or loss from operations before income taxes excluding nonrecurring gains and losses.
 
Changes in the Company’s management structure or reporting methodologies may result in changes in the measurement of operating segment results. Results for prior periods are generally restated for comparability for changes in management structure or reporting methodologies unless it is not deemed practicable to do so.
 

The following tables present the operating results and other key financial measures for the individual operating segments as of and for the years ended December 31, 2014, 2013, and 2012:
 
Year Ended December 31, 2014
 
Retail
Banking
Commercial
Banking
Other
Total
 
(In thousands)
Interest and dividend income
$
378,445

$
715,075

$
60,178

$
1,153,698

Charge for funds used
(94,162
)
(141,652
)
(47,570
)
(283,384
)
Interest spread on funds used
284,283

573,423

12,608

870,314

Interest expense
(48,020
)
(15,650
)
(49,150
)
(112,820
)
Credit on funds provided
225,873

38,592

18,919

283,384

Interest spread on funds provided
177,853

22,942

(30,231
)
170,564

Net interest income (loss) before provision for loan losses
$
462,136

$
596,365

$
(17,623
)
$
1,040,878

Provision for loan losses
$
14,979

$
34,179

$
—

$
49,158

Depreciation, amortization and accretion (1)
$
14,376

$
(8,372
)
$
108,117

$
114,121

Goodwill
$
357,207

$
112,226

$
—

$
469,433

Income before provision for income taxes
$
166,637

$
276,601

$
(27,783
)
$
415,455

Assets
$
7,621,808

$
15,595,862

$
5,520,379

$
28,738,049

 
Year Ended December 31, 2013
 
Retail
Banking
Commercial
Banking
Other
Total
 
(In thousands)
Interest and dividend income
$
374,818

$
627,118

$
66,749

$
1,068,685

Charge for funds used
(86,552
)
(116,161
)
(18,244
)
(220,957
)
Interest spread on funds used
288,266

510,957

48,505

847,728

Interest expense
(47,287
)
(15,185
)
(50,020
)
(112,492
)
Credit on funds provided
173,194

29,262

18,501

220,957

Interest spread on funds provided
125,907

14,077

(31,519
)
108,465

Net interest income before provision for loan losses
$
414,173

$
525,034

$
16,986

$
956,193

Provision for loan losses
$
10,911

$
11,453

$
—

$
22,364

Depreciation, amortization and accretion (1)
$
19,865

$
8,120

$
69,125

$
97,110

Goodwill
$
320,566

$
16,872

$
—

$
337,438

Income before provision for income taxes
$
123,876

$
272,369

$
29,605

$
425,850

Assets
$
7,820,191

$
11,545,405

$
5,364,472

$
24,730,068

 
Year Ended December 31, 2012
 
Retail
Banking
Commercial
Banking
Other
Total
 
(In thousands)
Interest and dividend income
$
356,244

$
617,041

$
77,810

$
1,051,095

Charge for funds used
(85,811
)
(118,688
)
44,407

(160,092
)
Interest spread on funds used
270,433

498,353

122,217

891,003

Interest expense
(57,401
)
(23,226
)
(51,541
)
(132,168
)
Credit on funds provided
130,713

13,138

16,241

160,092

Interest spread on funds provided
73,312

(10,088
)
(35,300
)
27,924

Net interest income before provision for loan losses
$
343,745

$
488,265

$
86,917

$
918,927

Provision for loan losses
$
28,729

$
36,455

$
—

$
65,184

Depreciation, amortization and accretion (1)
$
12,869

$
(13,277
)
$
44,159

$
43,751

Goodwill
$
320,566

$
16,872

$
—

$
337,438

Income before provision for income taxes
$
74,836

$
266,168

$
84,588

$
425,592

Assets
$
6,552,217

$
10,421,160

$
5,562,733

$
22,536,110

(1)
Includes amortization and accretion related to the FDIC indemnification asset.