18. Reportable Operating Segments  The Companys operations are organized into three business segments  Retail Banking, Commercial Banking, and Treasury and Other. These segments reflect how discrete financial information is currently evaluated by the chief operating decision maker and how performance is assessed and resources allocated. The Companys internal management process measures the performance of these business segments. This process, which is not necessarily comparable with similar information for any other financial institution, uses various techniques to assign balance sheet and income statement amounts to the business segments, including allocations of income, expense, the provision for credit losses, and capital. This process is dynamic and requires certain allocations based on judgment and other subjective factors. Unlike financial accounting, there is no comprehensive authoritative guidance for management accounting that is equivalent to GAAP.  The net interest income of the business segments reflects the results of a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics and reflects the allocation of net interest income related to the Companys overall asset and liability management activities on a proportionate basis. The basis for the allocation of net interest income is a function of the Companys assumptions that are subject to change based on changes in current interest rates and market conditions. Funds transfer pricing also serves to transfer interest rate risk to Treasury.  The Company allocates the provision for credit losses from the Treasury and Other business segment (which is comprised of many of the Companys support units) to the Retail and Commercial business segments. These allocations are based on direct costs incurred by the Retail and Commercial business segments.  Noninterest income and expense includes allocations from support units to the business segments. These allocations are based on actual usage where practicably calculated or by managements estimate of such usage. Income tax expense is allocated to each business segment based on the consolidated effective income tax rate for the period shown.  In 2019, the Company made changes to the internal measurement of segment operating profits for the purpose of evaluating segment performance and resource allocation. The primary reason for the change was to align deposit balances within the business segment that directly manages them. Specifically, certain deposit balances previously included as part of the Retail Banking segment have been reclassified to the Commercial Banking segment. The reallocation of select deposit balances affected net interest income, net interest income after provision for credit losses, noninterest income, provision for income taxes and net income. The Company has reported its selected financial information using the new deposit balance alignments for the three and nine months ended September 30, 2020. The Company has restated the selected financial information for the three and nine months ended September 30, 2019 in order to conform with the current presentation.  Additionally, during the fourth quarter of 2019, the Company changed its assumptions embedded in allocating deposit costs to business segments. The Company has reported its selected financial information using the new deposit cost assumptions starting with the fourth quarter of 2019.  Business Segments Retail Banking Retail Banking offers a broad range of financial products and services to consumers and small businesses. Loan and lease products offered include residential and commercial mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans and small business loans and leases. Deposit products offered include checking, savings, and time deposit accounts. Retail Banking also offers wealth management services. Products and services from Retail Banking are delivered to customers through 58 banking locations throughout the State of Hawaii, Guam, and Saipan.  Commercial Banking Commercial Banking offers products that include corporate banking, residential and commercial real estate loans, commercial lease financing, automobile loans and auto dealer financing, business deposit products and credit cards. Commercial lending and deposit products are offered primarily to middle-market and large companies locally, nationally, and internationally.  Treasury and Other Treasury consists of corporate asset and liability management activities including interest rate risk management. The segments assets and liabilities (and related interest income and expense) consist of interest-bearing deposits, investment securities, federal funds sold and purchased, government deposits, short- and long-term borrowings and bank-owned properties. The primary sources of noninterest income are from bank-owned life insurance, net gains from the sale of investment securities, foreign exchange income related to customer-driven currency requests from merchants and island visitors and management of bank-owned properties. The net residual effect of the transfer pricing of assets and liabilities is included in Treasury, along with the elimination of intercompany transactions.  Other organizational units (Technology, Operations, Credit and Risk Management, Human Resources, Finance, Administration, Marketing, and Corporate and Regulatory Administration) provide a wide-range of support to the Companys other income earning segments. Expenses incurred by these support units are charged to the business segments through an internal cost allocation process.  The following tables present selected business segment financial information for the periods indicated.                       Treasury      Retail  Commercial  and    (dollars in thousands) Banking Banking Other Total Three Months Ended September 30, 2020             Net interest income (expense)  $ 102,803  $ 32,757  $ (1,558)  $ 134,002 Provision for credit losses   (2,141)   (1,531)   (1,400)   (5,072) Net interest income (expense) after provision for credit losses   100,662   31,226   (2,958)   128,930              Noninterest income   24,649   16,679   7,570   48,898 Noninterest expense   (57,451)   (19,588)   (14,590)   (91,629) Income (loss) before (provision) benefit for income taxes   67,860   28,317   (9,978)   86,199              (Provision) benefit for income taxes   (16,898)   (6,722)   2,522   (21,098) Net income (loss)  $ 50,962  $ 21,595  $ (7,456)  $ 65,101 Total assets as of September 30, 2020  $ 7,772,539  $ 5,887,949  $ 8,650,213  $ 22,310,701                      Treasury      Retail  Commercial  and    (dollars in thousands) Banking Banking Other Total Nine Months Ended September 30, 2020             Net interest income  $ 288,832  $ 100,265  $ 11,410  $ 400,507 Provision for credit losses   (46,517)   (47,498)   (7,703)   (101,718) Net interest income after provision for credit losses   242,315   52,767   3,707   298,789              Noninterest income   73,197   52,530   18,055   143,782 Noninterest expense   (176,734)   (61,538)   (41,273)   (279,545) Income (loss) before (provision) benefit for income taxes   138,778   43,759   (19,511)   163,026              (Provision) benefit for income taxes   (33,752)   (10,546)   5,287   (39,011) Net income (loss)  $ 105,026  $ 33,213  $ (14,224)  $ 124,015 Total assets as of September 30, 2020  $ 7,772,539  $ 5,887,949  $ 8,650,213  $ 22,310,701                       Treasury      Retail  Commercial  and    (dollars in thousands) Banking Banking Other Total Three Months Ended September 30, 2019             Net interest income  $ 104,977  $ 35,911  $ 2,193  $ 143,081 Provision for credit losses             Net interest income after provision for credit losses   104,977   35,911   2,193   143,081              Noninterest income   23,948   17,447   8,585   49,980 Noninterest expense   (57,276)   (20,073)   (16,117)   (93,466) Income (loss) before (provision) benefit for income taxes   71,649   33,285   (5,339)   99,595              (Provision) benefit for income taxes   (18,097)   (8,626)   1,327   (25,396) Net income (loss)  $ 53,552  $ 24,659  $ (4,012)  $ 74,199 Total assets as of September 30, 2019  $ 7,072,484  $ 6,088,667  $ 7,437,069  $ 20,598,220                       Treasury      Retail  Commercial  and    (dollars in thousands) Banking Banking Other Total Nine Months Ended September 30, 2019             Net interest income  $ 319,912  $ 105,567  $ 8,304  $ 433,783 Provision for credit losses   (4,324)   (5,226)      (9,550) Net interest income after provision for credit losses   315,588   100,341   8,304   424,233              Noninterest income   71,192   54,560   20,073   145,825 Noninterest expense   (173,938)   (59,299)   (46,142)   (279,379) Income (loss) before (provision) benefit for income taxes   212,842   95,602   (17,765)   290,679              (Provision) benefit for income taxes   (53,802)   (24,814)   4,493   (74,123) Net income (loss)  $ 159,040  $ 70,788  $ (13,272)  $ 216,556 Total assets as of September 30, 2019  $ 7,072,484  $ 6,088,667  $ 7,437,069  $ 20,598,220