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 of Notes to Financial Statements in the 2016 Annual Report. 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. As disclosed in the 2016 Annual Report, during 2016 the Company revised its funds transfer pricing allocation related to borrowings. Additionally, during the second quarter of 2017, the Company revised its funds transfer pricing allocation related to certain deposit categories. As a result, prior period

14. Segment information, continued

financial information has been reclassified to provide segment information on a comparable basis, as noted in the following tables.

	Three months ended June 30, 2016
	Total Revenues as Previously Reported		Impact of Changes			Total Revenues as Reclassified		Net Income (Loss) as Previously Reported			Impact of Changes			Net Income (Loss) as Reclassified
	(In thousands)							(In thousands)

Business Banking	$	114,360		4,227			118,587	$	22,747			2,507			25,254
Commercial Banking		265,481		(137	)		265,344		105,392			(81	)		105,311
Commercial Real Estate		192,175		—			192,175		84,088			—			84,088
Discretionary Portfolio		98,460		(9,462	)		88,998		46,225			(5,612	)		40,613
Residential Mortgage Banking		103,882		(9,529	)		94,353		19,980			(5,651	)		14,329
Retail Banking		345,665		8,336			354,001		71,497			4,944			76,441
All Other		192,050		6,565			198,615		(13,898	)		3,893			(10,005	)
Total	$	1,312,073		-			1,312,073	$	336,031			—			336,031

	Six months ended June 30, 2016
	Total Revenues as Previously Reported		Impact of Changes			Total Revenues as Reclassified		Net Income (Loss) as Previously Reported			Impact of Changes			Net Income (Loss) as Reclassified
	(In thousands)							(In thousands)

Business Banking	$	228,049		8,634			236,683	$	48,195			5,121			53,316
Commercial Banking		519,098		(268	)		518,830		206,719			(159	)		206,560
Commercial Real Estate		369,555		—			369,555		164,617			—			164,617
Discretionary Portfolio		209,804		(19,769	)		190,035		100,749			(11,725	)		89,024
Residential Mortgage Banking		200,817		(16,638	)		184,179		37,057			(9,867	)		27,190
Retail Banking		684,711		16,348			701,059		134,785			9,696			144,481
All Other		392,936		11,693			404,629		(57,563	)		6,934			(50,629	)
Total	$	2,604,970		—			2,604,970	$	634,559			—			634,559

As also described in note 22 in the 2016 Annual Report, 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.

14. Segment information, continued

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

	Three Months Ended June 30
	2017							2016
	Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)		Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)
	(In thousands)

Business Banking	$	124,982		1,006			28,750	$	118,587		1,197			25,254
Commercial Banking		277,116		843			105,627		265,344		911			105,311
Commercial Real Estate		197,298		357			87,271		192,175		449			84,088
Discretionary Portfolio		72,044		(12,397	)		29,740		88,998		(14,608	)		40,613
Residential Mortgage Banking		88,700		18,144			13,742		94,353		21,244			14,329
Retail Banking		383,904		3,045			100,094		354,001		3,132			76,441
All Other		254,972		(10,998	)		15,829		198,615		(12,325	)		(10,005	)
Total	$	1,399,016		—			381,053	$	1,312,073		—			336,031

	Six Months Ended June 30,
	2017							2016
	Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)		Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)
	(In thousands)

Business Banking	$	245,315		1,917			53,738	$	236,683		2,188			53,316
Commercial Banking		551,024		1,763			218,414		518,830		1,967			206,560
Commercial Real Estate		392,423		764			171,818		369,555		836			164,617
Discretionary Portfolio		150,990		(25,324	)		63,685		190,035		(28,931	)		89,024
Residential Mortgage Banking		174,102		36,355			23,660		184,179		40,904			27,190
Retail Banking		752,422		6,092			186,285		701,059		6,146			144,481
All Other		493,845		(21,567	)		12,380		404,629		(23,110	)		(50,629	)
Total	$	2,760,121		—			729,980	$	2,604,970		—			634,559

14. Segment information, continued

	Average Total Assets
	Six Months Ended June 30				Year Ended December 31
	2017		2016		2016
	(In millions)

Business Banking	$	5,595		5,440		5,456
Commercial Banking		26,802		25,195		25,592
Commercial Real Estate		22,875		20,116		21,131
Discretionary Portfolio		38,341		41,900		40,867
Residential Mortgage Banking		2,341		2,587		2,569
Retail Banking		12,337		11,640		11,840
All Other		13,574		16,601		16,885
Total	$	121,865		123,479		124,340

(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 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 $8,736,000 and $6,522,000 for the three-month periods ended June 30, 2017 and 2016, respectively, and $16,735,000 and $12,854,000 for the six-month periods ended June 30, 2017 and 2016, 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.