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Business Segments
 6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Business Segments
Note 15 — 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 segments 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 segments 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 C&I and CRE operations, primarily generates commercial loans and deposits through the bank’s commercial lending offices. Furthermore, the Company’s Commercial Banking segment offers a wide variety of international finance, trade, and cash management 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.
 
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 allocated 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 the related 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.

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 encouraging loan and deposit growth that is consistent with the Company’s overall profitability 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.

Changes in the Company’s management structure or reporting methodologies may result in changes in the measurement of operating segment results. Results for prior year periods are generally restated for comparability for changes in management structure or reporting methodologies unless it is deemed not 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, 2017 and 2016:
 
($ in thousands)
 
Three Months Ended June 30, 2017
 
Retail
Banking
 
Commercial
Banking
 
Other
 
Total
Interest income
 
$
88,753

 
$
205,873

 
$
28,149

 
$
322,775

Charge for funds used
 
(33,139
)
 
(77,750
)
 
(14,516
)
 
(125,405
)
Interest spread on funds used
 
55,614

 
128,123

 
13,633

 
197,370

Interest expense
 
(18,378
)
 
(5,183
)
 
(9,123
)
 
(32,684
)
Credit on funds provided
 
106,094

 
12,624

 
6,687

 
125,405

Interest spread on funds provided (used)
 
87,716

 
7,441

 
(2,436
)
 
92,721

Net interest income before provision for credit losses
 
$
143,330

 
$
135,564

 
$
11,197

 
$
290,091

(Reversal of) provision for credit losses
 
$
(664
)
 
$
11,349

 
$
—

 
$
10,685

Depreciation, amortization and (accretion), net
 
$
996

 
$
(5,686
)
 
$
42,378

 
$
37,688

Segment income before income taxes
 
$
63,360

 
$
92,699

 
$
1,626

 
$
157,685

As of June 30, 2017:
 
 
 
 
 
 
 


Goodwill
 
$
357,207

 
$
112,226

 
$
—

 
$
469,433

Segment assets
 
$
8,438,706

 
$
20,456,579

 
$
7,022,332

 
$
35,917,617

 
 
($ 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 (used)
 
55,106

 
4,232

 
(1,370
)
 
57,968

Net interest income before provision for credit losses
 
$
109,943

 
$
128,977

 
$
14,664

 
$
253,584

Provision for credit losses
 
$
2,445

 
$
3,608

 
$
—

 
$
6,053

(Accretion), depreciation and amortization, net
 
$
(546
)
 
$
(9,267
)
 
$
22,287

 
$
12,474

Segment income before income taxes
 
$
36,264

 
$
95,179

 
$
11,473

 
$
142,916

As of June 30, 2016:
 
 
 
 
 
 
 


Goodwill
 
$
357,207

 
$
112,226

 
$
—

 
$
469,433

Segment assets
 
$
7,437,534

 
$
18,196,664

 
$
7,318,014

 
$
32,952,212

 

 
($ in thousands)
 
Six Months Ended June 30, 2017
 
Retail
Banking
 
Commercial
Banking
 
Other
 
Total
Interest income
 
$
169,777

 
$
398,292

 
$
57,375

 
$
625,444

Charge for funds used
 
(60,877
)
 
(142,259
)
 
(42,684
)
 
(245,820
)
Interest spread on funds used
 
108,900

 
256,033

 
14,691

 
379,624

Interest expense
 
(34,560
)
 
(10,282
)
 
(18,389
)
 
(63,231
)
Credit on funds provided
 
208,640

 
24,666

 
12,514

 
245,820

Interest spread on funds provided (used)
 
174,080

 
14,384

 
(5,875
)
 
182,589

Net interest income before provision for credit losses
 
$
282,980

 
$
270,417

 
$
8,816

 
$
562,213

(Reversal of) provision for credit losses
 
$
(286
)
 
$
18,039

 
$
—

 
$
17,753

Depreciation, amortization and (accretion), net
 
$
3,340

 
$
(9,160
)
 
$
71,638

 
$
65,818

Segment income before income taxes
 
$
136,047

 
$
185,170

 
$
64,472

 
$
385,689

As of June 30, 2017:
 
 
 
 
 
 
 
 
Goodwill
 
$
357,207

 
$
112,226

 
$
—

 
$
469,433

Segment assets
 
$
8,438,706

 
$
20,456,579

 
$
7,022,332

 
$
35,917,617

 
 
($ 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 (used)
 
112,931

 
10,183

 
(834
)
 
122,280

Net interest income before provision for credit losses
 
$
222,487

 
$
258,219

 
$
25,082

 
$
505,788

Provision for credit losses
 
$
863

 
$
6,630

 
$
—

 
$
7,493

(Accretion), depreciation and amortization, net
 
$
(503
)
 
$
(20,040
)
 
$
45,775

 
$
25,232

Segment income before income taxes
 
$
82,209

 
$
188,008

 
$
17,370

 
$
287,587

As of June 30, 2016:
 
 
 
 
 
 
 
 
Goodwill
 
$
357,207

 
$
112,226

 
$
—

 
$
469,433

Segment assets
 
$
7,437,534

 
$
18,196,664

 
$
7,318,014

 
$
32,952,212