NOTE 21 SEGMENT REPORTING:

The Corporation utilizes a risk-based internal profitability measurement system to provide strategic business unit reporting. The profitability measurement system is based on internal management methodologies designed to produce consistent results and reflect the underlying economics of the units. 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 three reportable segments are Corporate and Commercial Specialty; Community, Consumer, and Business; and Risk Management and Shared Services.

The financial information of the Corporation’s segments has been compiled utilizing the accounting policies described in Note 1, with certain exceptions. The more significant of these exceptions are described herein. The Corporation allocates interest income or interest expense using a funds transfer pricing methodology that charges users of funds (assets) interest expense and credits providers of funds (liabilities, primarily deposits) with income based on the maturity, prepayment and / or repricing characteristics of the assets and liabilities. The net effect of this allocation is recorded in the Risk Management and Shared Services segment. A credit provision is allocated to segments based on the expected long-term annual net charge off rates attributable to the credit risk of loans managed by the segment during the period. In contrast, the level of the consolidated provision for credit losses is determined based on an incurred loss model using the methodologies described in Note 1 to assess the overall appropriateness of the allowance for loan losses. The net effect of the credit provision is recorded in Risk Management and Shared Services. Indirect expenses incurred by certain centralized support areas are allocated to segments based on actual usage (for example, volume measurements) and other criteria. Certain types of administrative expense and bank-wide expense accruals (including amortization of core deposit and other intangible assets associated with acquisitions) are generally not allocated to segments. Income taxes are allocated to segments based on the Corporation’s estimated effective tax rate, with certain segments adjusted for any tax-exempt income or non-deductible expenses. Equity is allocated to the segments based on regulatory capital requirements and in proportion to an assessment of the inherent risks associated with the business of the segment (including interest, credit and operating risk).

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 U.S. generally accepted accounting principles. As a result, reported segments and the financial information of the reported segments are 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 previously reported segment financial data. During 2015, certain organizational and methodology changes were made and, accordingly, 2014 and 2013 results have been restated and presented on a comparable basis.

A description of each business segment is presented below.

Corporate and Commercial Specialty — The Corporate and Commercial Specialty segment serves a wide range of customers including larger businesses, developers, not-for-profits, municipalities, and financial institutions. In serving this segment we compete based on an in-depth understanding of our customers’ financial needs, the ability to match market competitive solutions to those needs, and the highest standards of relationship and service excellence in the delivery of these services. Delivery of services is provided through our corporate and commercial units, our commercial real estate unit, as well as our specialized industries and commercial financial services units. Within this segment we provide the following products and services: (1) lending solutions, such as commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, asset based lending, and, for our larger clients, loan syndications; (2) deposit and cash management solutions such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions; and information services; and (3) specialized financial services such as interest rate risk management, foreign exchange solutions, and commodity hedging.

Community, Consumer, and Business — The Community, Consumer, and Business segment serves individuals, as well as small and mid-sized businesses. In serving this segment we compete based on providing a broad range of solutions to meet the needs of our customers in their entire financial lifecycle, convenient access to our services through multiple channels such as branches, phone based services, online and mobile banking, and a relationship based business model which assists our customers in navigating any changes and challenges in their financial circumstances. Delivery of services is provided through our various Consumer Banking, Community Banking, and Private Client units. Within this segment we provide the following products and services: (1) lending solutions such as residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; (2) deposit and transactional solutions such as checking, credit, debit and pre-paid cards, online banking and bill pay, and money transfer services; (3) investable funds solutions such as savings, money market deposit accounts, IRA accounts, certificates of deposit, fixed and variable annuities, full-service, discount and on-line investment brokerage; investment advisory services; trust and investment management accounts; (4) insurance and benefits related products and services; and (5) fiduciary services such as administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management.

Risk Management and Shared Services — The Risk Management and Shared Services segment includes Corporate Risk Management, Credit Administration, Finance, Treasury, Operations and Technology, which are key shared functions. The segment also includes Parent Company activity, intersegment eliminations and residual revenue and expenses, representing the difference between actual amounts incurred and the amounts allocated to operating segments, including interest rate risk residuals (funds transfer pricing mismatches) and credit risk and provision residuals (long term credit charge mismatches). The earning assets within this segment include the Corporation’s investment portfolio, and capital includes both allocated and any remaining unallocated capital.

Information about the Corporation’s segments is presented below.



Segment Income Statement Data
($ in Thousands)	Corporate and Commercial Specialty			Community, Consumer, and Business			Risk Management and Shared Services			Consolidated Total
2015
Net interest income	$	310,072		$	349,134		$	17,072		$	676,278
Noninterest income	46,742			265,638			16,029			328,409
Total revenue	356,814			614,772			33,101			1,004,687
Credit provision*	41,913			25,614			(30,027		)	37,500
Noninterest expense	141,912			492,419			63,068			697,399
Income before income taxes	172,989			96,739			60			269,788
Income tax expense (benefit)	59,200			33,859			(11,572		)	81,487
Net income	$	113,789		$	62,880		$	11,632		$	188,301
Return on average allocated capital (ROCET1)**	11.6		%	9.8		%	2.1		%	9.9		%
2014
Net interest income	$	296,717		$	310,444		$	73,806		$	680,967
Noninterest income	49,213			221,379			19,727			290,319
Total revenue	345,930			531,823			93,533			971,286
Credit provision*	46,857			23,934			(54,791		)	16,000
Noninterest expense	148,476			463,184			67,581			679,241
Income before income taxes	150,597			44,705			80,743			276,045
Income tax expense	50,039			15,647			19,850			85,536
Net income	$	100,558		$	29,058		$	60,893		$	190,509
Return on average allocated capital (ROCET1)**	11.1		%	5.1		%	13.9		%	9.9		%
2013
Net interest income	$	321,346		$	317,898		$	6,299		$	645,543
Noninterest income	48,417			247,667			17,015			313,099
Total revenue	369,763			565,565			23,314			958,642
Credit provision*	55,297			20,122			(65,319		)	10,100
Noninterest expense	140,744			477,318			62,587			680,649
Income before income taxes	173,722			68,125			26,046			267,893
Income tax expense (benefit)	60,802			23,843			(5,444		)	79,201
Net income	$	112,920		$	44,282		$	31,490		$	188,692
Return on average allocated capital (ROCET1)**	12.5		%	7.8		%	6.5		%	9.8		%



Segment Balance Sheet Data
($ in Thousands)	Corporate and Commercial Specialty		Community, Consumer, and Business		Risk Management and Shared Services		Consolidated Total
2015
Average earning assets	$	9,383,971	$	8,810,015	$	6,377,101	$	24,571,087
Average loans	9,374,191		8,809,673		68,400		18,252,264
Average deposits	5,856,530		10,898,602		3,147,955		19,903,087
Average allocated capital (CET1)**	$	977,406	$	640,181	$	216,010	$	1,833,597
2014
Average earning assets	$	8,927,401	$	7,840,352	$	5,992,375	$	22,760,128
Average loans	8,915,498		7,840,352		83,144		16,838,994
Average deposits	5,148,195		10,061,495		2,437,394		17,647,084
Average allocated capital (CET1)**	$	903,500	$	564,303	$	402,806	$	1,870,609
2013
Average earning assets	$	8,443,203	$	7,225,943	$	5,310,982	$	20,980,128
Average loans	8,433,389		7,225,943		3,813		15,663,145
Average deposits	5,479,567		9,675,302		2,283,326		17,438,195
Average allocated capital (CET1)**	$	900,306	$	570,634	$	407,431	$	1,878,371
* The consolidated credit provision is equal to the actual reported provision for credit losses.
** The Federal Reserve establishes capital adequacy requirements for the Corporation, including Tier 1 capital. Tier 1 capital is comprised of common capital and certain redeemable, non-cumulative preferred stock. Average allocated capital represents average common equity Tier 1 which is defined as average Tier 1 capital excluding qualifying perpetual preferred stock and qualifying trust preferred securities. This is a non-GAAP financial measure. For segment reporting purposes, the ROCET1 reflects return on average allocated common equity Tier 1 (“CET1”). The ROCET1 for the Risk Management and Shared Services segment and the Consolidated Total is inclusive of the annualized effect of the preferred stock dividends.