Segments

The Company segregates financial information for use in assessing its performance and allocating resources among three operating segments: Consumer, Commercial and Wealth. The Consumer segment includes the consumer portion of the retail branch network (loans, deposits, and other personal banking services), indirect and other consumer financing, and consumer debit and credit bank cards. The Commercial segment provides corporate lending (including the Small Business Banking product line within the branch network), leasing, international services, and business, government deposit, and related commercial cash management services, as well as merchant and commercial bank card products. The Commercial segment includes the Capital Markets Group, which sells fixed income securities and provides investment safekeeping and bond accounting services. The Wealth segment provides traditional trust and estate tax planning, advisory and discretionary investment management, and brokerage services, and includes the Private Banking product portfolio.

The following table presents selected financial information by segment and reconciliations of combined segment totals to consolidated totals. There were no material intersegment revenues among the three segments. Management periodically makes changes to methods of assigning costs and income to its business segments to better reflect operating results. If appropriate, these changes are reflected in prior year information presented below.



(In thousands)	Consumer			Commercial			Wealth			Segment Totals			Other/ Elimination			Consolidated Totals
Three Months Ended March 31, 2014
Net interest income	$	66,862		$	73,401		$	9,912		$	150,175		$	2,891		$	153,066
Provision for loan losses	(9,220		)	(383		)	(41		)	(9,644		)	(16		)	(9,660		)
Non-interest income	25,644			47,117			29,989			102,750			(123		)	102,627
Investment securities gains, net	—			—			—			—			10,037			10,037
Non-interest expense	(66,287		)	(60,826		)	(24,749		)	(151,862		)	(10,478		)	(162,340		)
Income before income taxes	$	16,999		$	59,309		$	15,111		$	91,419		$	2,311		$	93,730
Three Months Ended March 31, 2013
Net interest income	$	67,213		$	70,215		$	10,174		$	147,602		$	2,741		$	150,343
Provision for loan losses	(8,211		)	489			(48		)	(7,770		)	4,485			(3,285		)
Non-interest income	26,608			44,506			28,819			99,933			(56		)	99,877
Investment securities losses, net	—			—			—			—			(2,165		)	(2,165		)
Non-interest expense	(67,904		)	(58,912		)	(24,308		)	(151,124		)	(3,913		)	(155,037		)
Income before income taxes	$	17,706		$	56,298		$	14,637		$	88,641		$	1,092		$	89,733

The information presented above was derived from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. This information is based on internal management accounting policies, which have been developed to reflect the underlying economics of the businesses. The policies address the methodologies applied in connection with funds transfer pricing and assignment of overhead costs among segments. Funds transfer pricing was used in the determination of net interest income by assigning a standard cost (credit) for funds used (provided) by assets and liabilities based on their maturity, prepayment and/or repricing characteristics.

The segment activity, as shown above, includes both direct and allocated items. Amounts in the “Other/Elimination” column include activity not related to the segments, such as that relating to administrative functions, the investment securities portfolio, and the effect of certain expense allocations to the segments. The provision for loan losses in this category contains the difference between net loan charge-offs assigned directly to the segments and the recorded provision for loan loss expense. Included in this category’s net interest income are earnings of the investment portfolio, which are not allocated to a segment.

The performance measurement of the operating segments is based on the management structure of the Company and is not necessarily comparable with similar information for any other financial institution. The information is also not necessarily indicative of the segments' financial condition and results of operations if they were independent entities.