Segment Information

6 Months Ended

Jun. 30, 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 June 30
	2013									2012
	Total revenues(a)			Inter- segment revenues			Net income (loss)			Total revenues(a)			Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	106,486			1,319			30,562			109,318			1,099			37,085
Commercial Banking		252,907			1,315			87,220			248,754			1,731			99,623
Commercial Real Estate		187,773			554			89,868			168,083			396			80,498
Discretionary Portfolio		(14,109	)		(10,015	)		(8,036	)		(11,807	)		(20,616	)		(14,757	)
Residential Mortgage Banking		111,764			21,589			34,143			109,995			37,455			25,994
Retail Banking		292,837			3,598			51,500			313,994			3,198			58,191
All Other		248,618			(18,360	)		63,209			101,296			(23,263	)		(53,254	)
Total	$	1,186,276			—			348,466			1,039,633			—			233,380

	Six months ended June 30
	2013									2012
	Total revenues(a)			Inter- segment revenues			Net income (loss)			Total revenues(a)			Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	211,904			2,513			63,123		$	221,294			2,191			72,418
Commercial Banking		502,757			2,665			194,607			486,216			3,271			202,719
Commercial Real Estate		353,066			2,106			166,376			321,627			829			149,129
Discretionary Portfolio		(2,068	)		(18,616	)		(6,190	)		(12,967	)		(35,397	)		(22,998	)
Residential Mortgage Banking		231,663			40,287			68,504			203,037			71,896			49,511
Retail Banking		584,022			6,855			103,850			620,842			6,090			106,848
All Other		393,864			(35,810	)		32,309			196,696			(48,880	)		(117,784	)
Total	$	2,275,208			—			622,579		$	2,036,745			—			439,843

	Average total assets
	Six months ended June 30				Year ended December 31
	2013		2012		2012
	(in millions)
Business Banking	$	5,010		4,932		4,909
Commercial Banking		21,446		19,455		19,946
Commercial Real Estate		17,122		16,316		16,437
Discretionary Portfolio		16,278		16,136		16,583
Residential Mortgage Banking		2,752		2,200		2,451
Retail Banking		11,357		11,791		11,705
All Other		8,672		8,226		7,952
Total	$	82,637		79,056		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 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 $6,217,000 and $6,645,000 for the three-month periods ended June 30, 2013 and 2012, respectively, and $12,667,000 and $13,350,000 for the six-month periods ended June 30, 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.