Segment information

9 Months Ended

Sep. 30, 2019

15. 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 2018 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.

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

	Three Months Ended September 30
	2019								2018
	Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)			Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)
	(In thousands)

Business Banking	$	143,741		912			46,147		$	138,898		920			43,730
Commercial Banking		282,757		980			132,668			280,671		875			147,910
Commercial Real Estate		238,364		458			131,161			214,266		371			116,386
Discretionary Portfolio		50,871		(10,550	)		29,604			53,061		(10,270	)		39,723
Residential Mortgage Banking		115,239		19,363			15,846			79,603		15,402			13,289
Retail Banking		432,339		1,808			131,638			427,452		2,862			141,612
All Other		294,358		(12,971	)		(6,983	)		294,381		(10,160	)		23,441
Total	$	1,557,669		—			480,081		$	1,488,332		—			526,091

	Nine Months Ended September 30
	2019								2018
	Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)			Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)
	(In thousands)

Business Banking	$	423,830		2,772			131,668		$	402,811		2,750			124,455
Commercial Banking		828,357		2,707			388,393			816,566		2,653			399,766
Commercial Real Estate		682,979		1,218			370,288			622,414		1,096			337,380
Discretionary Portfolio		175,764		(29,140	)		106,816			162,075		(31,656	)		88,575
Residential Mortgage Banking		295,449		51,027			36,429			244,228		46,870			43,637
Retail Banking		1,299,823		7,106			417,198			1,241,468		8,434			408,081
All Other		955,868		(35,690	)		(14,709	)		899,184		(30,147	)		(30,033	)
Total	$	4,662,070		—			1,436,083		$	4,388,746		—			1,371,861

15. Segment information, continued

	Average Total Assets
	Nine Months Ended September 30				Year Ended December 31
	2019		2018		2018
	(In millions)

Business Banking	$	5,758		5,637		5,631
Commercial Banking		28,089		26,524		26,626
Commercial Real Estate		23,893		22,899		22,885
Discretionary Portfolio		29,355		32,659		32,123
Residential Mortgage Banking		2,444		2,123		2,161
Retail Banking		14,839		13,522		13,656
All Other		14,206		13,312		13,877
Total	$	118,584		116,676		116,959

(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 $5,579,000 and $5,733,000 for the three-month periods ended September 30, 2019 and 2018, respectively, and $17,471,000 and $15,939,000 for the nine-month periods ended September 30, 2019 and 2018, 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.