Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2018

Information about the Corporation’s segments is presented below:



	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


(a)	The consolidated credit provision is equal to the actual reported provision for credit losses.

(b)

The Federal Reserve establishes capital adequacy requirements for the Corporation. Average allocated capital represents average common equity Tier 1, as defined by the Federal Reserve. For segment reporting purposes, the ROCET1, a non-GAAP financial measure, 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.

(c)

For the year ended December 31, 2018, the Risk Management and Shared Services segment includes approximately $29 million of acquisition related costs within noninterest expense and approximately $2 million of acquisition related asset losses, net of asset gains within noninterest income.