13. 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 2017 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.

13. Segment information, continued

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

	Three Months Ended June 30
	2018							2017
	Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)		Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)
	(In thousands)

Business Banking	$	136,029		912			43,007	$	124,982		1,006			28,750
Commercial Banking		269,499		928			126,391		277,116		843			105,627
Commercial Real Estate		205,541		385			112,691		197,298		357			87,271
Discretionary Portfolio		58,976		(10,554	)		29,113		72,044		(12,397	)		29,740
Residential Mortgage Banking		82,167		16,047			15,402		88,700		18,144			13,742
Retail Banking		420,540		2,707			143,089		383,904		3,045			100,094
All Other		293,449		(10,425	)		23,467		254,972		(10,998	)		15,829
Total	$	1,466,201		—			493,160	$	1,399,016		—			381,053

	Six Months Ended June 30
	2018								2017
	Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)			Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)
	(In thousands)

Business Banking	$	263,913		1,830			80,725		$	245,315		1,917			53,738
Commercial Banking		535,895		1,778			251,856			551,024		1,763			218,414
Commercial Real Estate		408,148		725			220,994			392,423		764			171,818
Discretionary Portfolio		109,014		(21,386	)		48,852			150,990		(25,324	)		63,685
Residential Mortgage Banking		164,625		31,468			30,348			174,102		36,355			23,660
Retail Banking		814,016		5,572			266,469			752,422		6,092			186,285
All Other		604,803		(19,987	)		(53,474	)		493,845		(21,567	)		12,380
Total	$	2,900,414		—			845,770		$	2,760,121		—			729,980

13. Segment information, continued

	Average Total Assets
	Six Months Ended June 30				Year Ended December 31
	2018		2017		2017
	(In millions)

Business Banking	$	5,656		5,595		5,602
Commercial Banking		26,542		26,802		26,573
Commercial Real Estate		22,848		22,875		22,741
Discretionary Portfolio		33,277		38,341		37,203
Residential Mortgage Banking		2,186		2,341		2,355
Retail Banking		13,403		12,337		12,702
All Other		13,109		13,574		13,684
Total	$	117,021		121,865		120,860

(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 $5,397,000 and $8,736,000 for the three-month periods ended June 30, 2018 and 2017, respectively, and $10,206,000 and $16,735,000 for the six-month periods ended June 30, 2018 and 2017, 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.