Segment Information

The Company’s operating segments are based on the Company’s organizational structure. Each segment reflects the manner in which financial information is evaluated by management. The operating segment results include certain overhead allocations and intercompany transactions. All intercompany transactions have been eliminated to determine the consolidated balances. The Company operates primarily in the United States, and, accordingly, revenue and assets outside the United States are not material. There are no individual customers whose revenues exceeded 10% of consolidated revenue.

The following tables present the segment information for the Company’s existing segments.



	Three Months Ended March 31, 2018
	Commercial Banking and Wealth		Retail Banking		Corporate and Investment Banking			Treasury			Corporate Support and Other			Consolidated
	(In Thousands)
Net interest income (expense)	$	301,618	$	259,829	$	42,587		$	(4,067	)	$	22,638		$	622,605
Allocated provision (credit) for loan losses	20,407		29,057		(18,209		)	(121		)	25,895			57,029
Noninterest income	61,236		108,752		41,792			6,725			39,320			257,825
Noninterest expense	176,749		286,826		39,610			5,589			54,139			562,913
Net income (loss) before income tax expense (benefit)	165,698		52,698		62,978			(2,810		)	(18,076		)	260,488
Income tax expense (benefit)	34,797		11,066		13,226			(590		)	(6,701		)	51,798
Net income (loss)	130,901		41,632		49,752			(2,220		)	(11,375		)	208,690
Less: net income (loss) attributable to noncontrolling interests	35		—		—			409			17			461
Net income (loss) attributable to BBVA Compass Bancshares, Inc.	$	130,866	$	41,632	$	49,752		$	(2,629	)	$	(11,392	)	$	208,229
Average assets	$	37,667,960	$	18,258,376	$	8,280,917		$	15,898,805		$	7,664,851		$	87,770,909



	Three Months Ended March 31, 2017
	Commercial Banking and Wealth		Retail Banking		Corporate and Investment Banking		Treasury		Corporate Support and Other			Consolidated
	(In Thousands)
Net interest income (expense)	$	270,975	$	223,712	$	35,295	$	23,260	$	(1,809	)	$	551,433
Allocated provision for loan losses	22,191		37,264		5,720		—		14,964			80,139
Noninterest income	49,885		106,569		46,684		6,352		35,197			244,687
Noninterest expense	158,639		292,700		38,760		6,308		52,905			549,312
Net income (loss) before income tax expense (benefit)	140,030		317		37,499		23,304		(34,481		)	166,669
Income tax expense (benefit)	49,010		111		13,125		8,156		(24,556		)	45,846
Net income (loss)	91,020		206		24,374		15,148		(9,925		)	120,823
Less: net income (loss) attributable to noncontrolling interests	23		—		—		416		4			443
Net income (loss) attributable to BBVA Compass Bancshares, Inc.	$	90,997	$	206	$	24,374	$	14,732	$	(9,929	)	$	120,380
Average assets	$	35,814,212	$	17,998,731	$	11,010,571	$	15,180,526	$	7,672,842		$	87,676,882

The financial information presented was derived from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. This information is based on internal management accounting policies that have been developed to reflect the underlying economics of the businesses. These policies address the methodologies applied and include policies related to funds transfer pricing, cost allocations and capital allocations.

Funds transfer pricing was used in the determination of net interest income earned primarily on loans and deposits. The method employed for funds transfer pricing is a matched funding concept whereby lines of business which are fund providers are credited and those that are fund users are charged based on maturity, prepayment and/or repricing characteristics applied on an instrument level. Costs for centrally managed operations are generally allocated to the lines of business based on the utilization of services provided or other appropriate indicators. Capital is allocated to the lines of business based upon the underlying risks in each business considering economic and regulatory capital standards.

The development and application of these methodologies is a dynamic process. Accordingly, prior period financial results have been revised to reflect management accounting enhancements and changes in the Company's organizational structure. The 2017 segment information has been revised to conform to the 2018 presentation. In addition, unlike financial accounting, there is no authoritative literature for management accounting similar to U.S. GAAP. Consequently, reported results are not necessarily comparable with those presented by other financial institutions.