Within the Warehouse Lending ("Warehouse") segment, net interest income remained solid when compared to the first quarter of 2015, as usage of Warehouse lines of credit continued to be relatively high among the Core Bank's clients during the quarter.
Net interest income at the Core Bank also continued to receive a solid contribution from the Company's 2012 FDIC-assisted transactions.
Noninterest income for the Core Bank was $7.5 million during the first quarter of 2016 compared to $6.8 million for the first quarter of 2015.
Core Bank noninterest expenses increased $1.5 million, or 6%, from the first quarter of 2015 to the same period in 2016.
Under this transaction, Bank BPH will be transformed into two separate operating units, the Core Bank and the Mortgage Bank, followed by the spin-off and demerger of the Core Bank into Alior Bank.
This transaction, which is expected to close in the fourth quarter of 2016, is subject to regulatory approvals from the Polish Financial Supervision Authority (PFSA), antitrust clearance, a rights issue by Alior Bank, and the demerger/spin-off of Bank BPH's Core Bank to Alior Bank.
Specifically, regulators should clarify how they will use certain regulatory flexibility under the advanced approaches rule, particularly with regard to how they will exercise exemptions for core banks from the advanced approaches requirement and the extent to which core banks will be allowed to adopt the standardized approach.
The plan should include how the regulators will evaluate competitive differences between core and non-core banks in the United States, between core banks and consolidated supervised entities, and between U.S.-based banks and banks based in other countries.