Business Segments The Companys business segments are defined as Retail Banking, Commercial Banking, Investment Services and Private Banking, and Treasury and Other. The Companys internal management accounting process measures the performance of these business segments. This process, which is not necessarily comparable with the process used by 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. Previously reported results have been reclassified to conform to the current reporting structure. 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. However, the other business segments have some latitude to retain certain interest rate exposures related to customer pricing decisions within guidelines. The provision for credit losses reflects the actual net charge-offs of the business segments. The amount of the consolidated provision for loan and lease losses is based on the methodology that we use to estimate our consolidated Allowance. The residual provision for credit losses to arrive at the consolidated provision for credit losses is included in Treasury and Other. Noninterest income and expense includes allocations from support units to business units. These allocations are based on actual usage where practicably calculated or by managements estimate of such usage. The provision for income taxes is allocated to business segments using a 26% effective income tax rate. However, the provision for income taxes for our Leasing business unit (included in the Commercial Banking segment) and Auto Leasing portfolio and Pacific Century Life Insurance business unit (both included in the Retail Banking segment) are assigned their actual effective income tax rates due to the unique relationship that income taxes have with their products. The residual income tax expense or benefit to arrive at the consolidated effective tax rate is included in Treasury and Other. Retail Banking Retail Banking offers a broad range of financial products and services to consumers and small businesses. Loan and lease products include residential mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, small business loans and leases, and credit cards. Deposit products include checking, savings, and time deposit accounts. Retail Banking also offers retail insurance products. Products and services from Retail Banking are delivered to customers through 68 branch locations and 387 ATMs throughout Hawaii and the Pacific Islands, e-Bankoh (on-line banking service), a 24-hour customer service center, and a mobile banking service. Commercial Banking Commercial Banking offers products including corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. Commercial lending and deposit products are offered to middle-market and large companies in Hawaii and the Pacific Islands. In addition, Commercial Banking offers deposit products to government entities in Hawaii. Commercial real estate mortgages focus on customers that include investors, developers, and builders predominantly domiciled in Hawaii. Commercial Banking also includes international banking and provides merchant services to its customers. Investment Services and Private Banking Investment Services and Private Banking includes private banking and international client banking services, trust services, investment management, and institutional investment advisory services. A significant portion of this segments income is derived from fees, which are generally based on the market values of assets under management. The private banking and personal trust groups assist individuals and families in building and preserving their wealth by providing investment, credit, and trust services to high-net-worth individuals. The investment management group manages portfolios utilizing a variety of investment products. Institutional client services offer investment advice to corporations, government entities, and foundations. This segment also provides a full service brokerage offering equities, mutual funds, life insurance, and annuity products. Treasury and Other Treasury consists of corporate asset and liability management activities, including interest rate risk management and a foreign currency exchange business. This segments assets and liabilities (and related interest income and expense) consist of interest-bearing deposits, investment securities, federal funds sold and purchased, and short and long-term borrowings. The primary sources of noninterest income are from bank-owned life insurance, net gains from the sale of investment securities, and foreign exchange income related to customer-driven currency requests from merchants and island visitors. 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, Marketing, Human Resources, Finance, Credit and Risk Management, 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. Selected business segment financial information as of and for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 were as follows: (dollars in thousands) Retail Banking Commercial Banking Investment Services and Private Banking Treasury and Other Consolidated Total Year Ended December 31, 2019 Net Interest Income $ 266,429 $ 185,259 $ 39,374 $ 6,653 $ 497,715 Provision for Credit Losses 11,670 976 15 3,339 16,000 Net Interest Income After Provision for Credit Losses 254,759 184,283 39,359 3,314 481,715 Noninterest Income 86,682 33,362 55,696 7,598 183,338 Noninterest Expense (216,688 ) (84,616 ) (64,974 ) (12,949 ) (379,227 ) Income Before Provision for Income Taxes 124,753 133,029 30,081 (2,037 ) 285,826 Provision for Income Taxes (30,725 ) (28,852 ) (7,929 ) 7,593 (59,913 ) Net Income $ 94,028 $ 104,177 $ 22,152 $ 5,556 $ 225,913 Total Assets as of December 31, 2019 $ 6,732,811 $ 4,254,261 $ 321,700 $ 6,786,724 $ 18,095,496 Year Ended December 31, 2018 Net Interest Income $ 264,459 $ 179,577 $ 41,222 $ 1,094 $ 486,352 Provision for Credit Losses 14,898 (760 ) (61 ) (652 ) 13,425 Net Interest Income After Provision for Credit Losses 249,561 180,337 41,283 1,746 472,927 Noninterest Income 79,004 23,733 55,338 10,848 168,923 Noninterest Expense (211,761 ) (81,344 ) (65,847 ) (12,672 ) (371,624 ) Income Before Provision for Income Taxes 116,804 122,726 30,774 (78 ) 270,226 Provision for Income Taxes (29,172 ) (28,496 ) (8,113 ) 15,157 (50,624 ) Net Income $ 87,632 $ 94,230 $ 22,661 $ 15,079 $ 219,602 Total Assets as of December 31, 2018 $ 6,365,263 $ 3,958,523 $ 349,832 $ 6,470,356 $ 17,143,974 Year Ended December 31, 2017 Net Interest Income $ 264,041 $ 171,038 $ 29,693 $ (7,534 ) $ 457,238 Provision for Credit Losses 14,008 (160 ) (21 ) 3,073 16,900 Net Interest Income After Provision for Credit Losses 250,033 171,198 29,714 (10,607 ) 440,338 Noninterest Income 85,042 21,670 57,105 21,600 185,417 Noninterest Expense (209,807 ) (74,209 ) (61,674 ) (12,001 ) (357,691 ) Income Before Provision for Income Taxes 125,268 118,659 25,145 (1,008 ) 268,064 Provision for Income Taxes (44,545 ) (41,797 ) (9,303 ) 12,253 (83,392 ) Net Income $ 80,723 $ 76,862 $ 15,842 $ 11,245 $ 184,672 Total Assets as of December 31, 2017 $ 5,936,568 $ 3,742,991 $ 336,455 $ 7,073,038 $ 17,089,052