Segment Reporting

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Reporting

NOTE 15: 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 areCorporate and Commercial Banking, Community and Consumer Banking, and Risk Management and Shared Services,with no segment representing more than half of the assets, liabilities or Tier 1common equity of the Corporation as a whole.

The financial information of the Corporation's segments has been compiled utilizing the accounting policies described inthe Corporation's 2013 annual report on Form 10-K 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 using the methodologies described in the Corporation's 2013 annual report on Form 10-K to assess the overall appropriateness of the allowance for credit 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 2014, certain organization and methodology changes were made and, accordingly, 2013 results have been restated and presented on a comparable basis.

A description of each business segment is presented below.

Corporate and Commercial Banking– The Corporate and Commercial Banking segment serves a wide range of customers including, businesses, developers, non-profits,municipalities, and financial institutions. Customers in this segment typically include companies with annual sales over $10millionand 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 area. The financial solutions provided to our customers include but are not limited to: (1) Lending solutions, such as commercial loans and lines of credit, business credit cards, commercial real estate financing, construction loans, letters of credit, leasing, and asset based lending. For our larger clients we also offer syndicated loans to meet their lending needs; (2) Deposit and cash management solutions such as business 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 insurance and benefits related products and services, risk management, and international banking solutions. In serving the commercial banking 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.

Community and Consumer Banking – The Community and Consumer Banking segment serves individuals and small businesses (typically entities with less than $10million in annual sales) through our various Consumer Banking, Community Banking, and Private Client offices, and provides companies of varying sizes with fiduciary services such as administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management. The services provided to our individual, small business, and community banking customers include but are not limited to: (1) Transactional solutions such as checking, credit, debit and pre-paid cards, online banking and bill pay, and money transfer services; (2) Lending solutions such as residential mortgages, home equity loans and lines of credit, personal and installment loans, commercial real estate financing, business loans, and business lines of credit; and (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; as well as trust and investment management accounts. In serving the consumer banking 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.

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 as well as any remaining unallocated capital.

Information about the Corporation's segments is presented below.

Segment Income Statement Data
	($ in Thousands)		Corporate and Commercial Banking		Community and Consumer Banking			Risk Management and Shared Services			Consolidated Total
Six Months Ended June 30, 2014
Net interest income		$	147,343		$	144,924		$	41,409		$	333,676
Noninterest income			49,872			87,897			7,999			145,768
	Total revenue		197,215			232,821			49,408			479,444
Credit provision *			25,947			9,760			(25,707)			10,000
Noninterest expense			98,828			199,405			37,350			335,583
Income before income taxes			72,440			23,656			37,765			133,861
Income tax expense			24,840			8,279			9,178			42,297
Net income		$	47,600		$	15,377		$	28,587		$	91,564
Return on average allocated capital (ROT1CE) **			12.0	%		6.3	%		8.7	%		9.5	%
Six Months Ended June 30, 2013
Net interest income		$	156,506		$	158,752		$	2,577		$	317,835
Noninterest income			47,260			109,643			9,407			166,310
	Total revenue		203,766			268,395			11,984			484,145
Credit provision *			27,196			10,452			(29,048)			8,600
Noninterest expense			91,354			210,610			34,347			336,311
Income before income taxes			85,216			47,333			6,685			139,234
Income tax expense (benefit)			29,826			16,567			(2,435)			43,958
Net income		$	55,390		$	30,766		$	9,120		$	95,276
Return on average allocated capital (ROT1CE) **			14.6	%		11.4	%		2.4	%		10.0	%
Segment Balance Sheet Data
	($ in Thousands)		Corporate and Commercial Banking		Community and Consumer Banking			Risk Management and Shared Services			Consolidated Total
Average Balances for YTD 2Q 2014
Average earning assets		$	9,020,912		$	7,308,806		$	5,887,073		$	22,216,791
Average loans			9,010,272			7,308,806			87,756			16,406,834
Average deposits			5,147,717			9,636,263			2,298,077			17,082,057
Average allocated capital (T1CE) **		$	796,717		$	492,002		$	606,910		$	1,895,629
Average Balances for YTD 2Q 2013
Average earning assets		$	8,335,894		$	7,258,455		$	5,222,479		$	20,816,828
Average loans			8,325,992			7,258,455			4,305			15,588,752
Average deposits			5,290,239			9,634,922			2,200,456			17,125,617
Average allocated capital (T1CE) **		$	765,432		$	544,457		$	558,807		$	1,868,696
* The consolidated credit provision is equal to the actual reported provision for credit losses.
** ROT1CE reflects return on average allocated Tier 1 common equity ("T1CE"). The ROT1CE for the Risk Management and Shared Services segment and the Consolidated Total is inclusive of the annualized effect of the preferred stock dividends.
Segment Income Statement Data
	($ in Thousands)		Corporate and Commercial Banking		Community and Consumer Banking			Risk Management and Shared Services			Consolidated Total
Three Months Ended June 30, 2014
Net interest income		$	73,801		$	72,926		$	21,976		$	168,703
Noninterest income			25,722			44,365			2,160			72,247
	Total revenue		99,523			117,291			24,136			240,950
Credit provision *			12,915			4,813			(12,728)			5,000
Noninterest expense			52,035			99,517			16,373			167,925
Income before income taxes			34,573			12,961			20,491			68,025
Income tax expense			11,586			4,537			5,537			21,660
Net income		$	22,987		$	8,424		$	14,954		$	46,365
Return on average allocated capital (ROT1CE) **			11.4	%		6.8	%		9.3	%		9.6	%
Three Months Ended June 30, 2013
Net interest income		$	79,327		$	79,559		$	1,296		$	160,182
Noninterest income			24,061			55,479			4,770			84,310
	Total revenue		103,388			135,038			6,066			244,492
Credit provision *			14,983			5,980			(15,663)			5,300
Noninterest expense			44,923			107,883			15,890			168,696
Income before income taxes			43,482			21,175			5,839			70,496
Income tax expense (benefit)			15,219			7,411			(22)			22,608
Net income		$	28,263		$	13,764		$	5,861		$	47,888
Return on average allocated capital (ROT1CE) **			14.6	%		10.1	%		3.3	%		9.9	%
Segment Balance Sheet Data
	($ in Thousands)		Corporate and Commercial Banking		Community and Consumer Banking			Risk Management and Shared Services			Consolidated Total
Average Balances for 2Q 2014
Average earning assets		$	9,188,973		$	7,386,355		$	5,962,187		$	22,537,515
Average loans			9,175,637			7,386,355			84,397			16,646,389
Average deposits			5,055,431			9,731,580			2,385,821			17,172,832
Average allocated capital (T1CE) **		$	806,137		$	495,476		$	590,153		$	1,891,766
Average Balances for 2Q 2013
Average earning assets		$	8,513,663		$	7,218,796		$	5,218,785		$	20,951,244
Average loans			8,504,175			7,218,796			4,836			15,727,807
Average deposits			5,206,773			9,671,089			2,227,216			17,105,078
Average allocated capital (T1CE) **		$	776,991		$	545,301		$	558,534		$	1,880,826
* The consolidated credit provision is equal to the actual reported provision for credit losses.
** ROT1CE reflects return on average allocated Tier 1 common equity ("T1CE"). The ROT1CE for the Risk Management and Shared Services segment and the Consolidated Total is inclusive of the annualized effect of the preferred stock dividends.