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BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
BUSINESS SEGMENTS
NOTE 14 — BUSINESS SEGMENTS
 
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; its 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 discrete financial information is available.
 
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 commercial lending offices located in the Bank’s production offices. Furthermore, the Company’s Commercial Banking segment 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 Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of the Company’s 2015 Form 10-K. 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 credit 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 three and six months ended June 30, 2016 and 2015:
 
($ in thousands)
 
Three Months Ended June 30, 2016
 
Retail
Banking
 
Commercial
Banking
 
Other
 
Total
Interest income
 
$
78,635

 
$
177,426

 
$
22,804

 
$
278,865

Charge for funds used
 
(23,798
)
 
(52,681
)
 
(6,770
)
 
(83,249
)
Interest spread on funds used
 
54,837

 
124,745

 
16,034

 
195,616

Interest expense
 
(14,672
)
 
(4,240
)
 
(6,369
)
 
(25,281
)
Credit on funds provided
 
69,778

 
8,472

 
4,999

 
83,249

Interest spread on funds provided
 
55,106

 
4,232

 
(1,370
)
 
57,968

Net interest income
 
$
109,943

 
$
128,977

 
$
14,664

 
$
253,584

Provision for credit losses
 
$
2,445

 
$
3,608

 
$
—

 
$
6,053

Depreciation, amortization and (accretion), net
 
$
(546
)
 
$
(9,267
)
 
$
22,287

 
$
12,474

Goodwill
 
$
357,207

 
$
112,226

 
$
—

 
$
469,433

Segment pretax profit
 
$
36,264

 
$
95,179

 
$
11,473

 
$
142,916

Segment assets
 
$
7,437,534

 
$
18,196,664

 
$
7,318,014

 
$
32,952,212

 

 
($ in thousands)
 
Three Months Ended June 30, 2015
 
Retail
Banking
 
Commercial
Banking
 
Other
 
Total
Interest income
 
$
82,729

 
$
157,337

 
$
15,379

 
$
255,445

Charge for funds used
 
(21,357
)
 
(38,328
)
 
(13,723
)
 
(73,408
)
Interest spread on funds used
 
61,372

 
119,009

 
1,656

 
182,037

Interest expense
 
(12,996
)
 
(4,710
)
 
(10,247
)
 
(27,953
)
Credit on funds provided
 
60,950

 
7,995

 
4,463

 
73,408

Interest spread on funds provided
 
47,954

 
3,285

 
(5,784
)
 
45,455

Net interest income (loss)
 
$
109,326

 
$
122,294

 
$
(4,128
)
 
$
227,492

(Reversal of) provision for credit losses
 
$
(3,454
)
 
$
6,948

 
$
—

 
$
3,494

Depreciation, amortization and (accretion), net (1)
 
$
3,235

 
$
(6,054
)
 
$
8,938

 
$
6,119

Goodwill
 
$
357,207

 
$
112,226

 
$
—

 
$
469,433

Segment pretax profit (loss)
 
$
55,349

 
$
97,269

 
$
(8,197
)
 
$
144,421

Segment assets
 
$
7,373,641

 
$
16,141,368

 
$
6,549,063

 
$
30,064,072

 
 
($ in thousands)
 
Six Months Ended June 30, 2016
 
Retail
Banking
 
Commercial
Banking
 
Other
 
Total
Interest income
 
$
156,006

 
$
354,508

 
$
44,523

 
$
555,037

Charge for funds used
 
(46,450
)
 
(106,472
)
 
(18,607
)
 
(171,529
)
Interest spread on funds used
 
109,556

 
248,036

 
25,916

 
383,508

Interest expense
 
(29,278
)
 
(8,266
)
 
(11,705
)
 
(49,249
)
Credit on funds provided
 
142,209

 
18,449

 
10,871

 
171,529

Interest spread on funds provided
 
112,931

 
10,183

 
(834
)
 
122,280

Net interest income
 
$
222,487

 
$
258,219

 
$
25,082

 
$
505,788

Provision for credit losses
 
$
863

 
$
6,630

 
$
—

 
$
7,493

Depreciation, amortization and (accretion), net
 
$
(503
)
 
$
(20,040
)
 
$
45,775

 
$
25,232

Goodwill
 
$
357,207

 
$
112,226

 
$
—

 
$
469,433

Segment pretax profit
 
$
82,209

 
$
188,008

 
$
17,370

 
$
287,587

Segment assets
 
$
7,437,534

 
$
18,196,664

 
$
7,318,014

 
$
32,952,212

 
 
($ in thousands)
 
Six Months Ended June 30, 2015
 
Retail
Banking
 
Commercial
Banking
 
Other
 
Total
Interest income
 
$
170,175

 
$
316,122

 
$
32,409

 
$
518,706

Charge for funds used
 
(44,656
)
 
(75,678
)
 
(23,168
)
 
(143,502
)
Interest spread on funds used
 
125,519

 
240,444

 
9,241

 
375,204

Interest expense
 
(25,219
)
 
(8,973
)
 
(21,305
)
 
(55,497
)
Credit on funds provided
 
118,618

 
16,010

 
8,874

 
143,502

Interest spread on funds provided
 
93,399

 
7,037

 
(12,431
)
 
88,005

Net interest income (loss)
 
$
218,918

 
$
247,481

 
$
(3,190
)
 
$
463,209

(Reversal of) provision for credit losses
 
$
(2,723
)
 
$
11,204

 
$
—

 
$
8,481

Depreciation, amortization and (accretion), net (1)
 
$
4,917

 
$
(16,531
)
 
$
21,860

 
$
10,246

Goodwill
 
$
357,207

 
$
112,226

 
$
—

 
$
469,433

Segment pretax profit (loss)
 
$
108,284

 
$
190,444

 
$
(7,481
)
 
$
291,247

Segment assets
 
$
7,373,641

 
$
16,141,368

 
$
6,549,063

 
$
30,064,072

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