Business Segment Reporting

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Business Segment Reporting

8. Business Segment Reporting

The Company has strategically aligned its operations into the following three reportable segments (collectively, the Business Segments): Bank, Institutional Investment Management, and Asset Servicing. Senior executive officers regularly evaluate business segment financial results produced by the Company’s internal management reporting system in deciding how to allocate resources and assess performance for individual Business Segments. Previously, the Company had the following four Business Segments: Bank, Institutional Investment Management, Asset Servicing, and Payment Solutions. In the first quarter of 2016, the Company merged the Payments Solutions segment into the Bank segment to better reflect how the core businesses, products and services are being evaluated by management currently. The Company’s Payment Solutions leadership structure and financial performance assessments are now included in the Bank segment, and accordingly, the reportable segments were realigned to reflect these changes. For comparability purposes, amounts in all periods are based on methodologies in effect at March 31, 2016. 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, consumer and commercial credit and debit card, prepaid debit card solutions, healthcare services, institutional cash management, merchant bankcard, wealth management, brokerage, insurance, capital markets, investment banking, corporate trust, and correspondent banking.

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 June 30, 2016
	Bank		Institutional Investment Management		Asset Servicing		Total
Net interest income	$	118,613	$	—	$	2,597	$	121,210
Provision for loan losses		7,000		—		—		7,000
Noninterest income		80,044		19,127		22,276		121,447
Noninterest expense		145,736		18,858		20,649		185,243
Income before taxes		45,921		269		4,224		50,414
Income tax expense		11,939		77		1,101		13,117
Net income	$	33,982	$	192	$	3,123	$	37,297
Average assets	$	18,170,000	$	61,000	$	1,205,000	$	19,436,000
	Three Months Ended June 30, 2015
	Bank		Institutional Investment Management		Asset Servicing		Total
Net interest income	$	96,403	$	—	$	957	$	97,360
Provision for loan losses		5,000		—		—		5,000
Noninterest income		70,840		25,685		23,025		119,550
Noninterest expense		133,617		18,302		20,045		171,964
Income before taxes		28,626		7,383		3,937		39,946
Income tax expense		7,017		1,747		968		9,732
Net income	$	21,609	$	5,636	$	2,969	$	30,214
Average assets	$	16,384,000	$	71,000	$	958,000	$	17,413,000
	Six Months Ended June 30, 2016
	Bank		Institutional Investment Management		Asset Servicing		Total
Net interest income	$	233,885	$	—	$	5,217	$	239,102
Provision for loan losses		12,000		—		—		12,000
Noninterest income		155,483		37,542		44,772		237,797
Noninterest expense		289,104		36,088		40,795		365,987
Income before taxes		88,264		1,454		9,194		98,912
Income tax expense		22,643		367		2,360		25,370
Net income	$	65,621	$	1,087	$	6,834	$	73,542
Average assets	$	18,027,000	$	62,000	$	1,296,000	$	19,385,000
	Six Months Ended June 30, 2015
	Bank		Institutional Investment Management		Asset Servicing		Total
Net interest income	$	185,764	$	—	$	1,954	$	187,718
Provision for loan losses		8,000		—		—		8,000
Noninterest income		145,529		52,769		46,459		244,757
Noninterest expense		258,796		36,262		41,319		336,377
Income before taxes		64,497		16,507		7,094		88,098
Income tax expense		17,732		4,497		1,890		24,119
Net income	$	46,765	$	12,010	$	5,204	$	63,979
Average assets	$	16,101,000	$	73,000	$	950,000	$	17,124,000