Business Segment Reporting

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Business Segment Reporting

8. Business Segment Reporting

The Company has strategically aligned its operations into the following four reportable segments (collectively, “Business Segments”): Bank, Payment Solutions, Institutional Investment Management, and Asset Servicing. Business segment financial results produced by the Company’s internal management reporting system are evaluated regularly by senior executive officers in deciding how to allocate resources and assess performance for individual Business Segments. The management reporting system assigns balance sheet and income statement items to each business segment using methodologies that are refined on an ongoing basis. For comparability purposes, amounts in all periods presented are based on methodologies in effect at March 31, 2014. Previously reported results have been reclassified to conform to the current organizational structure.

The following summaries provide information about the activities of each segment:

The Bank provides a full range of banking services to commercial, retail, government and correspondent bank customers through the Company’s branches, call center, internet banking, and ATM network. Services include traditional commercial and consumer banking, treasury management, leasing, foreign exchange, merchant bankcard, wealth management, brokerage, insurance, capital markets, investment banking, corporate trust, and correspondent banking.

Payment Solutions provides consumer and commercial credit and debit card, prepaid debit card solutions, healthcare services, and institutional cash management. Healthcare services include health savings account and flexible savings account products for healthcare providers, third-party administrators and large employers.

Institutional Investment Management provides equity and fixed income investment strategies in the intermediary and institutional markets via mutual funds, traditional separate accounts and sub-advisory relationships.

Asset Servicing provides services to the asset management industry, supporting a range of investment products, including mutual funds, alternative investments and managed accounts. Services include fund administration, fund accounting, investor services, transfer agency, distribution, marketing, custody, alternative investment services, and collective and multiple-series trust services.

Business Segment Information

Segment financial results were as follows (in thousands):

	Three Months Ended March 31, 2014
	Bank		Payment Solutions		Institutional Investment Management			Asset Servicing		Total
Net interest income	$	71,121	$	12,388	$	(2	)	$	1,938	$	85,445
Provision for loan losses		2,426		2,074		—			—		4,500
Noninterest income		47,420		20,235		34,095			21,214		122,964
Noninterest expense		107,753		21,015		25,894			17,579		172,241
Income before taxes		8,362		9,534		8,199			5,573		31,668
Income tax expense		1,942		2,609		2,184			1,520		8,255
Net income	$	6,420	$	6,925	$	6,015		$	4,053	$	23,413
Average assets	$	12,299,000	$	1,952,000	$	74,000		$	2,179,000	$	16,504,000

	Three Months Ended March 31, 2013
	Bank		Payment Solutions		Institutional Investment Management		Asset Servicing		Total
Net interest income	$	67,260	$	11,548	$	—	$	675	$	79,483
Provision for loan losses		309		1,691		—		—		2,000
Noninterest income		52,748		19,437		28,552		20,279		121,016
Noninterest expense		91,536		20,117		18,845		19,880		150,378
Income before taxes		28,163		9,177		9,707		1,074		48,121
Income tax expense		7,705		2,534		2,667		274		13,180
Net income	$	20,458	$	6,643	$	7,040	$	800	$	34,941
Average assets	$	11,306,000	$	1,698,000	$	78,000	$	1,701,000	$	14,783,000