Segment information

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segment information

14. Segment information

Reportable segments have been determined based upon the Company’s internal profitability reporting system, which is organized by strategic business unit. Certain strategic business units have been combined for segment information reporting purposes where the nature of the products and services, the type of customer and the distribution of those products and services are similar. The reportable segments are Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking and Retail Banking.

The financial information of the Company’s segments was compiled utilizing the accounting policies described in note 22 to the Company’s consolidated financial statements as of and for the year ended December 31, 2012. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, the financial information of the reported segments is not necessarily comparable with similar information reported by other financial institutions. As also described in note 22 to the Company’s 2012 consolidated financial statements, neither goodwill nor core deposit and other intangible assets (and the amortization charges associated with such assets) resulting from acquisitions of financial institutions have been allocated to the Company’s reportable segments, but are included in the “All Other” category. The Company does, however, assign such intangible assets to business units for purposes of testing for impairment.

Information about the Company’s segments is presented in the following table:

	Three months ended March 31
	2013								2012
	Total revenues(a)		Inter- segment revenues			Net income (loss)			Total revenues(a)			Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	105,418		1,194			32,561			111,976			1,092			35,333
Commercial Banking		249,850		1,350			107,387			237,462			1,540			103,096
Commercial Real Estate		165,293		1,552			76,508			153,544			433			68,631
Discretionary Portfolio		12,041		(8,601	)		1,846			(1,160	)		(14,781	)		(8,241	)
Residential Mortgage Banking		119,899		18,698			34,361			93,042			34,441			23,517
Retail Banking		291,185		3,257			52,350			306,848			2,892			48,657
All Other		145,246		(17,450	)		(30,900	)		95,400			(25,617	)		(64,530	)
Total	$	1,088,932		—			274,113			997,112			—			206,463

	Average total assets
	Three months ended March 31				Year ended December 31
	2013		2012		2012
	(in millions)
Business Banking	$	4,980		5,206		4,909
Commercial Banking		21,272		19,158		19,946
Commercial Real Estate		17,054		16,316		16,437
Discretionary Portfolio		16,585		15,804		16,583
Residential Mortgage Banking		2,847		2,142		2,451
Retail Banking		11,391		11,856		11,705
All Other		7,784		7,544		7,952
Total	$	81,913		78,026		79,983

(a) Total revenues are comprised of net interest income and other income. Net interest income is the difference between taxable-equivalent interest earned on assets and interest paid on liabilities owed by a segment and a funding charge (credit) based on the Company’s internal funds transfer pricing and allocation methodology. Segments are charged a cost to fund any assets (e.g. loans) and are paid a funding credit for any funds provided (e.g. deposits). The taxable-equivalent adjustment aggregated $6,450,000 and $6,705,000 for the three-month periods ended March 31, 2013 and 2012, respectively, and is eliminated in “All Other” total revenues. Intersegment revenues are included in total revenues of the reportable segments. The elimination of intersegment revenues is included in the determination of “All Other” total revenues.