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BUSINESS SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
BUSINESS SEGMENT INFORMATION BUSINESS SEGMENT INFORMATION
Business Segment Products and Services

The Company’s reportable segments are focused principally around the customers the Company serves. The Company has identified the following reportable segments: CBB, C&I, CRE & VF, CIB, and SC.
NOTE 17. BUSINESS SEGMENT INFORMATION (continued)

•The CBB segment includes the products and services provided to Bank consumer and business banking customers, including consumer deposit, business banking, residential mortgage, unsecured lending and investment services. This segment offers a wide range of products and services to consumers and business banking customers, including demand and interest-bearing demand deposit accounts, money market and savings accounts, CDs and retirement savings products. It also offers lending products such as credit cards, mortgages, home equity lines of credit, and business loans such as business lines of credit and commercial cards. The Bank also finances indirect consumer automobile RICs through an intercompany agreement with SC. In addition, the Bank provides investment services to its retail customers, including annuities, mutual funds, and insurance products. Santander Universities, which provides grants and scholarships to universities and colleges as a way to foster education through research, innovation and entrepreneurship, is the last component of this segment.
•The C&I segment currently provides commercial lines, loans, letters of credit, receivables financing and deposits to medium- and large-sized commercial customers, as well as financing and deposits for government entities. This segment also provides niche product financing for specific industries.
•The CRE & VF segment offers CRE loans and multifamily loans to customers. This segment also offers commercial loans to dealers and financing for commercial equipment and vehicles.
•The CIB segment serves the needs of global commercial and institutional customers by leveraging the international footprint of Santander to provide financing and banking services to corporations with over $500 million in annual revenues. CIB also includes SIS, a registered broker-dealer located in New York that provides services in investment banking, institutional sales, and trading and offering research reports of Latin American and European equity and fixed-income securities. CIB's offerings and strategy are based on Santander's local and global capabilities in wholesale banking.
•SC is a specialized consumer finance company focused on vehicle finance and third-party servicing. SC’s primary business is the indirect origination of RICs, principally through manufacturer-franchised dealers in connection with their sale of new and used vehicles to retail consumers. In conjunction with the Chrysler agreement, SC offers a full spectrum of auto financing products and services to FCA customers and dealers under the Chrysler Capital brand. These products and services include consumer RICs and leases, as well as dealer loans for inventory, construction, real estate, working capital and revolving lines of credit. SC also originates vehicle loans through a web-based direct lending program, purchases vehicle RICs from other lenders, and services automobile, recreational and marine vehicle portfolios for other lenders. During 2015, SC announced its intention to exit the personal lending business. SC has entered into a number of intercompany agreements with the Bank as described above as part of the Other segment. All intercompany revenue and fees between the Bank and SC are eliminated in the consolidated results of the Company.

The Other category includes certain immaterial subsidiaries such as BSI, BSPR, SSLLC, and SFS, the unallocated interest expense on the Company's borrowings and other debt obligations and certain unallocated corporate income and indirect expenses. This category also includes the Bank’s community development finance activities, including originating CRA-eligible loans and making CRA-eligible investments.

The Company’s segment results, excluding SC and the entities that have been transferred to the IHC, are derived from the Company’s business unit profitability reporting system by specifically attributing managed balance sheet assets, deposits and other liabilities and their related interest income or expense to each of the segments. Funds transfer pricing methodologies are utilized to allocate a cost for funds used or a credit for funds provided to business line deposits, loans and selected other assets using a matched funding concept. The methodology includes a liquidity premium adjustment, which considers an appropriate market participant spread for commercial loans and deposits by analyzing the mix of borrowings available to the Company with comparable maturity periods.

Other income and expenses are managed directly by each reportable segment, including fees, service charges, salaries and benefits, and other direct expenses, as well as certain allocated corporate expenses, and are accounted for within each segment’s financial results. Accounting policies for the lines of business are the same as those used in preparation of the Condensed Consolidated Financial Statements with respect to activities specifically attributable to each business line. However, the preparation of business line results requires management to establish methodologies to allocate funding costs and benefits, expenses and other financial elements to each line of business. Where practical, the results are adjusted to present consistent methodologies for the segments.

The application and development of management reporting methodologies is a dynamic process and is subject to periodic enhancements. The implementation of these enhancements to the internal management reporting methodology may materially affect the results disclosed for each segment with no impact on consolidated results. Whenever significant changes to management reporting methodologies take place, prior period information is reclassified wherever practicable.
NOTE 17. BUSINESS SEGMENT INFORMATION (continued)

In July 2020, the Company announced organizational changes to Business Banking to meet the evolving needs of its business customers including the re-alignment of Upper Business Banking into the C&I segment from the CBB segment. The CODM internal reporting package has not been updated for this change. Segment results will be updated in subsequent reporting periods after changes to the CODM internal reporting are finalized.

The CODM manages SC on a historical basis by reviewing the results of SC on a pre-Change in Control basis. The Results of Segments table below discloses SC's operating information on the same basis that it is reviewed by the CODM. The adjustments column includes adjustments to reconcile SC's GAAP results to SHUSA's consolidated results.

Results of Segments

The following tables present certain information regarding the Company’s segments.
For the Three-Month Period EndedSHUSA Reportable Segments
June 30, 2020CBBC&ICRE & VFCIB
Other(2)
SC(3)
SC Purchase Price Adjustments(4)
Eliminations(4)
Total
(in thousands)
Net interest income$358,430  $70,034  $90,160  $42,457  $(9,330) $984,745  $(201) $2,495  $1,538,790  
Non-interest income71,373  12,221  2,157  90,398  (49,109) 667,242  3,168  (11,132) 786,318  
Provision for/(release of) credit losses186,714  36,568  14,252  15,314  (137,597) 861,896  226  —  977,373  
Total expenses1,955,547  337,287  29,736  62,424  121,796  919,626  9,804  (6,530) 3,429,690  
Income/(loss) before income taxes(1,712,458) (291,600) 48,329  55,117  (42,638) (129,535) (7,063) (2,107) (2,081,955) 
Intersegment revenue/(expense)(1)
541  2,381  1,019  (3,941) —  —  —  —  —  
For the Six-Month Period EndedSHUSA Reportable Segments
June 30, 2020CBBC&ICRE & VF
CIB(5)
Other(2)
SC(3)
SC Purchase Price Adjustments(4)
Eliminations(4)
Total
(in thousands)
Net interest income$708,278  $127,853  $191,309  $79,376  $15,662  $1,996,152  $(423) $6,559  $3,124,766  
Non-interest income154,926  25,952  5,350  140,550  65,244  1,441,074  5,021  (24,639) 1,813,478  
Credit loss expense352,184  71,178  63,387  33,455  (127,436) 1,769,783  432  —  2,162,983  
Total expenses2,340,820  387,037  58,681  124,923  291,186  1,803,423  19,593  (12,172) 5,013,491  
Income/(loss) before income taxes(1,829,800) (304,410) 74,591  61,548  (82,844) (135,980) (15,427) (5,908) (2,238,230) 
Intersegment revenue/(expense)(1)
961  4,944  2,753  (8,658) —  —  —  —  —  
Total assets24,052,719  7,048,220  19,567,288  12,419,110  41,997,755  47,268,695  —  —  152,353,787  
(1)Intersegment revenue/(expense) represents charges or credits for funds used or provided by each of the segments and is included in net interest income.
(2)Other includes the results of the entities transferred to the IHC, with the exception of SIS, earnings from non-strategic assets, the investment portfolio, interest expense on the Bank’s and the Company's borrowings and other debt obligations, amortization of intangible assets and certain unallocated corporate income and indirect expenses.
(3)Management of SHUSA manages SC by analyzing the pre-Change in Control results of SC, which are presented in this column.
(4)SC Purchase Price Adjustments represents the impact that SC purchase marks had on the results of SC included within the consolidated operations of SHUSA, while eliminations eliminate intercompany transactions.
(5)Includes results and assets of SIS.
NOTE 17. BUSINESS SEGMENT INFORMATION (continued)

For the Three-Month Period EndedSHUSA Reportable Segments
June 30, 2019CBBC&ICRE & VFCIB
Other(2)
SC(3)
SC Purchase Price Adjustments(4)
Eliminations(4)
Total
(in thousands)
Net interest income$374,187  $57,428  $105,148  $40,033  $30,715  $992,485  $9,802  $11,927  $1,621,725  
Non-interest income86,543  16,738  3,194  54,423  114,251  713,737  2,313  (28,215) 962,984  
Provision for/(release of) credit losses40,215  6,925  3,534  (4,188) 4,622  430,676  (1,152) —  480,632  
Total expenses404,102  59,508  32,593  66,120  181,599  795,514  9,860  (6,910) 1,542,386  
Income/(loss) before income taxes16,413  7,733  72,215  32,524  (41,255) 480,032  3,407  (9,378) 561,691  
Intersegment revenue/(expense)(1)
581  1,053  1,782  (3,401) (15) —  —  —  —  
For the Six-Month Period EndedSHUSA Reportable Segments
June 30, 2019CBBC&ICRE & VF
CIB(5)
Other(2)
SC(3)
SC Purchase Price Adjustments(4)
Eliminations(4)
Total
(in thousands)
Net interest income$739,164  $110,771  $207,714  $78,068  $71,904  $1,976,050  $17,126  $23,813  $3,224,610  
Non-interest income161,200  33,010  6,433  106,629  206,633  1,389,291  4,314  (49,079) 1,858,431  
Credit loss expense / (Recovery of) credit loss expense77,215  15,585  3,400  (2,746) 8,393  981,555  (2,559) —  1,080,843  
Total expenses794,073  114,183  62,667  132,560  406,301  1,566,487  20,390  (11,860) 3,084,801  
Income/(loss) before income taxes29,076  14,013  148,080  54,883  (136,157) 817,299  3,609  (13,406) 917,397  
Intersegment revenue/(expense)(1)
976  2,304  3,791  (7,071) —  —  —  —  —  
Total assets22,801,820  7,442,924  18,809,753  10,178,060  38,261,781  46,416,093  —  —  143,910,431  
(1)- (5) Refer to corresponding notes above.