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 reportable segment results are presented based on the Corporation's internal management accounting process. 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. Additionally, the information presented is not indicative of how the segments would perform if they operated as independent entities.

To determine financial performance of each segment, the Corporation allocates funds transfer pricing ("FTP") assignments, the provision for credit losses, certain noninterest expenses, income tax, and equity to each segment. Allocation methodologies are subject to periodic adjustment as the internal management accounting system is revised, the interest rate environment evolves, and business or product lines within the segments change. Also, because the development and application of these methodologies is a dynamic process, the financial results presented may be periodically reviewed.

The Corporation allocates net interest income using an internal FTP methodology that charges users of funds (assets) and credits providers of funds (liabilities, primarily deposits) based on the maturity, prepayment, and / or re-pricing characteristics of the assets and liabilities. The net effect of this allocation is offset in the Risk Management and Shared Services segment to ensure the consolidated total reflects the Corporation's net interest income. The net FTP allocation is reflected as net intersegment interest income (expense) in the accompanying tables.

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 and the allowance for unfunded commitments. 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 expenses 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, the net tax residual is recorded in Risk Management and Shared Services. 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).

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 (FTP 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. In addition, the segment includes certain unallocated expenses related to Bank Mutual's shared services and operations prior to system conversion in late June 2018. All acquisition costs are included in this segment.



	Corporate and Commercial Specialty
	For the Years Ended December 31,
	2018			2017			2016
	($ in Thousands)
Net interest income	$	457,613		$	360,789		$	312,982
Net intersegment interest income (expense)	(56,356		)	(3,737		)	15,621
Segment net interest income	401,258			357,051			328,603
Noninterest income	52,321			52,297			47,776
Total revenue	453,578			409,348			376,379
Credit provision ^(a)	44,592			42,298			50,397
Noninterest expense	160,399			156,890			148,493
Income (loss) before income taxes	248,587			210,160			177,489
Income tax expense (benefit)	47,850			71,655			59,261
Net income	$	200,737		$	138,505		$	118,228
Return on average allocated capital (ROCET1) ^(b)	16.60		%	12.39		%	11.04		%

Average earning assets	$	11,852,662		$	10,820,998		$	10,178,813
Average loans	11,841,818			10,811,827			10,169,300
Average deposits	8,112,430			6,938,913			5,904,238
Average allocated capital (CETI)^(b)	1,209,558			1,117,761			1,070,598
Allocated goodwill	524,525			428,000			428,000



	Community, Consumer, and Business
	For the Years Ended December 31,
	2018			2017			2016
	($ in Thousands)
Net interest income	$	357,245		$	316,008		$	306,913
Net intersegment interest income (expense)	87,737			45,353			43,639
Segment net interest income	444,982			361,361			350,551
Noninterest income	295,647			266,250			277,942
Total revenue	740,629			627,611			628,493
Credit provision^(a)	20,083			20,400			24,185
Noninterest expense	542,117			490,908			502,285
Income (loss) before income taxes	178,429			116,303			102,023
Income tax expense (benefit)	37,476			40,706			35,708
Net income	$	140,953		$	75,597		$	66,315
Return on average allocated capital (ROCET1)^(b)	21.57		%	12.89		%	10.53		%

Average earning assets	$	10,336,105		$	9,456,549		$	9,309,028
Average loans	10,332,665			9,452,253			9,307,723
Average deposits	13,623,852			11,711,407			11,451,759
Average allocated capital (CETI)^(b)	653,354			586,417			629,540
Allocated goodwill	644,498			548,238			543,951



	Risk Management and Shared Services
	For the Years Ended December 31,
	2018			2017			2016
	($ in Thousands)
Net interest income	$	64,722		$	64,423		$	87,378
Net intersegment interest income (expense)	(31,382		)	(41,615		)	(59,259		)
Segment net interest income	33,341			22,808			28,119
Noninterest income	7,600			14,133			27,165
Total revenue	40,941			36,941			55,284
Credit provision^(a)	(64,675		)	(36,698		)	(4,582		)
Noninterest expense^(c)	119,283			61,335			51,782
Income (loss) before income taxes	(13,668		)	12,304			8,084
Income tax expense (benefit)	(5,540		)	(2,858		)	(7,647		)
Net income	$	(8,128	)	$	15,162		$	15,731
Return on average allocated capital (ROCET1)^(b)	(3.19		)%	1.44		%	2.84		%

Average earning assets	$	7,861,026		$	6,722,337		$	6,538,820
Average loans	543,814			328,303			173,644
Average deposits	2,335,768			3,273,282			3,649,775
Average allocated capital (CETI)^(b)	592,006			405,281			240,253
Allocated goodwill	—			—			—



	Consolidated Total
	For the Years Ended December 31,
	2018			2017			2016
	($ in Thousands)
Net interest income	$	879,580		$	741,220		$	707,273
Net intersegment interest income (expense)	—			—			—
Segment net interest income	879,580			741,220			707,273
Noninterest income	355,568			332,680			352,883
Total revenue	1,235,148			1,073,900			1,060,156
Credit provision^(a)	—			26,000			70,000
Noninterest expense	821,799			709,133			702,560
Income (loss) before income taxes	413,349			338,767			287,596
Income tax expense (benefit)	79,786			109,503			87,322
Net income	$	333,562		$	229,264		$	200,274
Return on average allocated capital (ROCET1)^(b)	13.15		%	10.43		%	9.86		%

Average earning assets	$	30,049,793		$	26,999,884		$	26,026,661
Average loans	22,718,297			20,592,383			19,650,667
Average deposits	24,072,049			21,923,602			21,005,772
Average allocated capital (CETI)^(b)	2,454,919			2,109,459			1,940,391
Allocated goodwill	1,169,023			976,239			971,951