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BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
BUSINESS SEGMENTS
NOTE 19 — 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 internal 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. Internal transfer pricing assumptions and methodologies are reviewed at least annually to ensure that the Company’s process is reflective of current market conditions. The internal 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. 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 years ended December 31, 2016, 2015 and 2014:
 
($ in thousands)
 
Year Ended December 31, 2016
 
Retail
Banking
 
Commercial
Banking
 
Other
 
Total
Interest income
 
$
315,146

 
$
726,013

 
$
96,322

 
$
1,137,481

Charge for funds used
 
(95,970
)
 
(216,849
)
 
(47,646
)
 
(360,465
)
Interest spread on funds used
 
219,176

 
509,164

 
48,676

 
777,016

Interest expense
 
(60,180
)
 
(16,892
)
 
(27,771
)
 
(104,843
)
Credit on funds provided
 
300,446

 
38,636

 
21,383

 
360,465

Interest spread on funds provided
 
240,266

 
21,744

 
(6,388
)
 
255,622

Net interest income before provision for credit losses
 
$
459,442

 
$
530,908

 
$
42,288

 
$
1,032,638

(Reversal of) provision for credit losses
 
$
(4,356
)
 
$
31,835

 
$
—

 
$
27,479

Depreciation, amortization and (accretion), net
 
$
601

 
$
(35,534
)
 
$
118,281

 
$
83,348

Segment income before income taxes
 
$
170,129

 
$
377,913

 
$
24,146

 
$
572,188

As of December 31, 2016:
 
 
 
 
 
 
 
 
Goodwill
 
$
357,207

 
$
112,226

 
$
—

 
$
469,433

Segment assets
 
$
7,821,610

 
$
19,128,510

 
$
7,838,720

 
$
34,788,840

 
 
($ in thousands)
 
Year Ended December 31, 2015
 
Retail
Banking
 
Commercial
Banking
 
Other
 
Total
Interest income
 
$
331,755

 
$
654,966

 
$
67,094

 
$
1,053,815

Charge for funds used
 
(86,769
)
 
(163,601
)
 
(66,773
)
 
(317,143
)
Interest spread on funds used
 
244,986

 
491,365

 
321

 
736,672

Interest expense
 
(53,088
)
 
(18,025
)
 
(32,263
)
 
(103,376
)
Credit on funds provided
 
261,117

 
36,251

 
19,775

 
317,143

Interest spread on funds provided
 
208,029

 
18,226

 
(12,488
)
 
213,767

Net interest income (loss) before provision for credit losses
 
$
453,015

 
$
509,591

 
$
(12,167
)
 
$
950,439

(Reversal of) provision for credit losses
 
$
(5,835
)
 
$
20,052

 
$
—

 
$
14,217

Depreciation, amortization and (accretion), net (1)
 
$
10,051

 
$
(28,096
)
 
$
64,247

 
$
46,202

Segment income (loss) before income taxes
 
$
212,036

 
$
382,233

 
$
(15,548
)
 
$
578,721

As of December 31, 2015:
 
 
 
 
 
 
 
 
Goodwill
 
$
357,207

 
$
112,226

 
$
—

 
$
469,433

Segment assets
 
$
7,095,737

 
$
17,923,319

 
$
7,331,866

 
$
32,350,922

 
(1)
Includes amortization and (accretion) related to the FDIC indemnification asset/net payable to the FDIC.
 
($ in thousands)
 
Year Ended December 31, 2014
 
Retail
Banking
 
Commercial
Banking
 
Other
 
Total
Interest 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 credit losses
 
$
462,136

 
$
596,365

 
$
(17,623
)
 
$
1,040,878

Provision for credit losses
 
$
14,979

 
$
34,179

 
$
—

 
$
49,158

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

 
$
(8,372
)
 
$
76,549

 
$
82,553

Segment income (loss) before income taxes
 
$
181,286

 
$
293,425

 
$
(27,688
)
 
$
447,023

As of December 31, 2014:
 
 
 
 
 
 
 
 
Goodwill
 
$
357,207

 
$
112,226

 
$
—

 
$
469,433

Segment assets
 
$
7,621,808

 
$
15,595,862

 
$
5,525,922

 
$
28,743,592

 

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