Segment information

3 Months Ended

Mar. 31, 2015

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, 2014. 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. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data. Effective January 1, 2015, the Company made certain changes to its methodology for measuring segment profit and loss. Those changes in the measurement of segment profitability were largely the result of updated funds transfer pricing and various cost allocation reviews. The most significant changes to the funds transfer pricing resulted from ascribing a longer duration to non-maturity deposits, which significantly benefitted the Retail Banking segment. The cost allocation review having the largest impact related to a branch cost study. That study consisted of transaction reviews and time studies which resulted in a higher cost allocation from the Retail Banking segment to the Business Banking segment. As a result of the changes, prior period financial information has been restated to provide segment information on a comparable basis, as noted below:

	Three months ended March 31, 2014
	Net income (loss) as previously reported			Impact of changes			Net income (loss) as restated
	(in thousands)
Business Banking	$	28,598			(3,625	)		24,973
Commercial Banking		99,765			(924	)		98,841
Commercial Real Estate		74,561			(2,009	)		72,552
Discretionary Portfolio		11,279			81			11,360
Residential Mortgage Banking		19,411			(831	)		18,580
Retail Banking		29,711			39,323			69,034
All Other		(34,308	)		(32,015	)		(66,323	)
Total	$	229,017			—			229,017

As also described in note 22 to the Company’s 2014 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
	2015								2014
	Total revenues (a)		Inter- segment revenues			Net income (loss)			Total revenues (a)		Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	108,560		1,045			24,811		$	111,770		1,057			24,973
Commercial Banking		246,581		1,085			96,423			249,349		1,197			98,841
Commercial Real Estate		163,320		82			80,086			157,323		348			72,552
Discretionary Portfolio		15,474		(5,443	)		5,954			24,657		(5,039	)		11,360
Residential Mortgage Banking		111,458		11,387			31,965			93,765		9,748			18,580
Retail Banking		300,391		3,137			68,888			306,780		3,505			69,034
All Other		154,007		(11,293	)		(66,514	)		132,896		(10,816	)		(66,323	)
Total	$	1,099,791		—			241,613		$	1,076,540		—			229,017

	Average total assets
	Three months ended March 31				Year ended December 31
	2015		2014		2014
	(in millions)
Business Banking	$	5,300		5,242		5,281
Commercial Banking		23,683		22,523		22,892
Commercial Real Estate		18,019		16,937		17,113
Discretionary Portfolio		22,714		18,581		20,798
Residential Mortgage Banking		3,512		3,157		3,333
Retail Banking		10,788		10,155		10,449
All Other		11,876		10,070		12,277
Total	$	95,892		86,665		92,143

(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 $5,838,000 and $5,945,000 for the three-month periods ended March 31, 2015 and 2014, 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.