Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information

Segment Information

(13) Segment Information

The Company's operations consist of three primary segments: community banking, specialty finance and wealth management.

The three reportable segments are strategic business units that are separately managed as they offer different products and services and have different marketing strategies. In addition, each segment's customer base has varying characteristics. The community banking segment has a different regulatory environment than the specialty finance and wealth management segments. While the Company's management monitors each of the fifteen bank subsidiaries' operations and profitability separately, these subsidiaries have been aggregated into one reportable operating segment due to the similarities in products and services, customer base, operations, profitability measures, and economic characteristics.

The net interest income, net revenue and segment profit of the community banking segment includes income and related interest costs from portfolio loans that were purchased from the specialty finance segment. For purposes of internal segment profitability analysis, management reviews the results of its specialty finance segment as if all loans originated and sold to the community banking segment were retained within that segment's operations, thereby causing inter-segment eliminations. Similarly, for purposes of analyzing the contribution from the wealth management segment, management allocates a portion of the net interest income earned by the community banking segment on deposit balances of customers of the wealth management segment to the wealth management segment. See Note 10 — Deposits, for more information on these deposits.

The segment financial information provided in the following tables has been derived from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. The accounting policies of the segments are generally the same as those described in "Summary of Significant Accounting Policies" in Note 1 of the Company's 2010 Form 10-K. The Company evaluates segment performance based on after-tax profit or loss and other appropriate profitability measures common to each segment. Certain indirect expenses have been allocated based on actual volume measurements and other criteria, as appropriate. Intersegment revenue and transfers are generally accounted for at current market prices. The parent and intersegment eliminations reflected parent company information and intersegment eliminations.

The following is a summary of certain operating information for reportable segments:

	Three Months Ended June 30,						$ Change in Contribution			% Change  in Contribution
(Dollars in thousands)	2011			2010
Net interest income:
Community banking	$	101,580		$	97,437		$	4,143			4	%
Specialty finance		27,974			22,378			5,596			25
Wealth management		886			2,437			(1,551	)		(64	)
Parent and inter-segment eliminations		(21,734	)		(17,938	)		(3,796	)		(21	)
Total net interest income	$	108,706		$	104,314			4,392			4	%
Non-interest income:
Community banking	$	24,967		$	41,618		$	(16,651	)		(40	)%
Specialty finance		781			707			74			10
Wealth management		13,432			11,069			2,363			21
Parent and inter-segment eliminations		(2,528	)		(2,958	)		430			15
Total non-interest income	$	36,652		$	50,436			(13,784	)		(27	)%
Net revenue:
Community banking	$	126,547		$	139,055		$	(12,508	)		(9	)%
Specialty finance		28,755			23,085			5,670			25
Wealth management		14,318			13,506			812			6
Parent and inter-segment eliminations		(24,262	)		(20,896	)		(3,366	)		(16	)
Total net revenue	$	145,358		$	154,750			(9,392	)		(6	)%
Segment profit (loss):
Community banking	$	10,630		$	24,604		$	(13,974	)		(57	)%
Specialty finance		15,413			(493	)		15,906			NM
Wealth management		980			1,316			(336	)		(26	)
Parent and inter-segment eliminations		(15,273	)		(12,418	)		(2,855	)		(23	)
Total segment profit (loss)	$	11,750		$	13,009			(1,259	)		(10	)%
Segment assets:
Community banking	$	13,768,237		$	12,875,801		$	892,436			7	%
Specialty finance		3,211,599			2,886,020			325,579			11
Wealth management		67,262			66,123			1,139			2
Parent and inter-segment eliminations		(2,431,201	)		(2,119,384	)		(311,817	)		(15	)
Total segment assets	$	14,615,897		$	13,708,560			907,337			7	%

	Six Months Ended June 30,						$ Change in Contribution			% Change  in Contribution
(Dollars in thousands)	2011			2010
Net interest income:
Community banking	$	202,811		$	185,461		$	17,350			9	%
Specialty finance		56,006			45,411			10,595			23
Wealth management		3,439			4,979			(1,540	)		(31	)
Parent and inter-segment eliminations		(43,936	)		(35,672	)		(8,264	)		(23	)
Total net interest income	$	218,320		$	200,179			18,141			9	%
Non-interest income:
Community banking	$	53,458		$	56,814		$	(3,356	)		(6	)%
Specialty finance		1,498			12,183			(10,685	)		(88	)
Wealth management		26,430			21,757			4,673			21
Parent and inter-segment eliminations		(3,847	)		2,290			(6,137	)		NM
Total non-interest income	$	77,539		$	93,044			(15,505	)		(17	)%
Net revenue:
Community banking	$	256,269		$	242,275		$	13,994			6	%
Specialty finance		57,504			57,594			(90	)		—
Wealth management		29,869			26,736			3,133			12
Parent and inter-segment eliminations		(47,783	)		(33,382	)		(14,401	)		(43	)
Total net revenue	$	295,859		$	293,223			2,636			1	%
Segment profit:
Community banking	$	28,271		$	30,627		$	(2,356	)		(8	)%
Specialty finance		27,965			15,414			12,551			81
Wealth management		2,703			2,373			330			14
Parent and inter-segment eliminations		(30,787	)		(19,387	)		(11,400	)		(59	)
Total segment profit	$	28,152		$	29,027			(875	)		(3	)%