Segment Information

9 Months Ended

Sep. 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 September 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	$	107,887		1,237			26,552			114,181		1,011			38,411
Commercial Banking		257,317		1,383			97,221			255,498		1,561			112,654
Commercial Real Estate		171,094		399			79,450			169,806		5,031			75,896
Discretionary Portfolio		44,040		(19,584	)		25,182			1,805		(25,593	)		(5,039	)
Residential Mortgage Banking		92,505		15,241			12,731			138,662		28,454			44,727
Retail Banking		314,273		3,351			53,965			318,567		2,841			58,441
All Other		163,380		(2,027	)		(622	)		109,936		(13,305	)		(31,628	)
Total	$	1,150,496		—			294,479			1,108,455		—			293,462

	Nine months ended September 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	$	319,791		3,750			89,675		335,475			3,202			110,829
Commercial Banking		760,074		4,048			291,828		741,714			4,832			315,373
Commercial Real Estate		524,160		2,505			245,826		491,433			5,860			225,025
Discretionary Portfolio		41,972		(38,200	)		18,992		(11,162	)		(60,990	)		(28,037	)
Residential Mortgage Banking		324,168		55,528			81,235		341,699			100,350			94,238
Retail Banking		898,295		10,206			157,815		939,409			8,931			165,289
All Other		557,244		(37,837	)		31,687		306,632			(62,185	)		(149,412	)
Total	$	3,425,704		—			917,058		3,145,200			—			733,305

	Average total assets
	Nine months ended September 30				Year ended December 31
	2013		2012		2012
	(in millions)
Business Banking	$	5,041		4,918		4,909
Commercial Banking		21,554		19,691		19,946
Commercial Real Estate		17,112		16,364		16,437
Discretionary Portfolio		16,224		16,428		16,583
Residential Mortgage Banking		2,783		2,316		2,451
Retail Banking		11,304		11,746		11,705
All Other		9,082		8,055		7,952
Total	$	83,100		79,518		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 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 $6,105,000 and $6,534,000 for the three-month periods ended September 30, 2013 and 2012, respectively, and $18,772,000 and $19,884,000 for the nine-month periods ended September 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.