Business Segment Reporting

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Business Segment Reporting

8. Business Segment Reporting

The Company has strategically aligned its operations into the following four reportable segments (collectively, “Business Segments”): Bank, Payment Solutions, Institutional Investment Management, and Asset Servicing. Business segment financial results produced by the Company’s internal management accounting system are evaluated regularly by the Executive Committee in deciding how to allocate resources and assess performance for individual Business Segments. The Business Segments were redefined during the first quarter of 2012 to reflect changes in how executive management responsibilities were changed by the Executive Committee for each of the core businesses, the products and services provided and the types of customers served, and how financial information is currently evaluated by management. The management accounting system assigns balance sheet and income statement items to each business segment using methodologies that are refined on an ongoing basis. For comparability purposes, amounts in all periods presented are based on methodologies in effect at March 31, 2013. Previously reported results have been reclassified to conform to the current organizational structure.

The following summaries provide information about the activities of each segment:

The Bank provides a full range of banking services to commercial, retail, government and correspondent bank customers through the Company’s branches, call center, internet banking, and ATM network. Services include traditional commercial and consumer banking, treasury management, leasing, foreign exchange, merchant bankcard, wealth management, brokerage, insurance, capital markets, investment banking, corporate trust, and correspondent banking.

Payment Solutions provides consumer and commercial credit and debit card, prepaid debit card solutions, healthcare services, and institutional cash management. Healthcare services include health savings account and flexible savings account products for healthcare providers, third-party administrators and large employers.

Institutional Investment Management provides equity and fixed income investment strategies in the intermediary and institutional markets via mutual funds, traditional separate accounts and sub-advisory relationships.

Asset Servicing provides services to the asset management industry, supporting a range of investment products, including mutual funds, alternative investments and managed accounts. Services include fund administration, fund accounting, investor services, transfer agency, distribution, marketing, custody, alternative investment services, and collective and multiple-series trust services.

Business Segment Information

Segment financial results were as follows (in thousands):

	Three Months Ended March 31, 2013
	Bank		Payment Solutions		Institutional Investment Management		Asset Servicing		Total
Net interest income	$	67,260	$	11,548	$	—	$	675	$	79,483
Provision for loan losses		257		1,743		—		—		2,000
Noninterest income		52,748		19,437		28,553		20,278		121,016
Noninterest expense		91,437		20,051		18,958		19,932		150,378
Income before taxes		28,314		9,191		9,595		1,021		48,121
Income tax expense		7,181		2,786		2,635		578		13,180
Net income	$	21,133	$	6,405	$	6,960	$	443	$	34,941
Average assets	$	11,733,000	$	1,264,000	$	78,000	$	1,708,000	$	14,783,000

	Three Months Ended March 31, 2012
	Bank		Payment Solutions		Institutional Investment Management		Asset Servicing		Total
Net interest income	$	67,970	$	10,724	$	3	$	392	$	79,089
Provision for loan losses		1,835		2,665		-		—		4,500
Noninterest income		69,928		16,098		26,126		20,149		132,301
Noninterest expense		93,119		14,809		17,183		16,793		141,904
Income before taxes		42,944		9,348		8,946		3,748		64,986
Income tax expense		11,605		2,916		2,572		1,526		18,619
Net income	$	31,339	$	6,432	$	6,374	$	2,222	$	46,367
Average assets	$	11,341,000	$	846,000	$	83,000	$	1,028,000	$	13,298,000