Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Information

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 substantially similar to as those described in “Summary of Significant Accounting Policies” in Note 1 of the Company’s 2012 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)	2013			2012
Net interest income:
Community banking	$	127,515		$	123,016		$	4,499		4	%
Specialty finance	31,460			28,694			2,766			10
Wealth management	2,396			2,692			(296		)	(11	)
Parent and inter-segment eliminations	(25,547		)	(26,132		)	585			2
Total net interest income	$	135,824		$	128,270		$	7,554		6	%
Non-interest income:
Community banking	$	42,602		$	37,019		$	5,583		15	%
Specialty finance	1,789			1,567			222			14
Wealth management	19,071			15,964			3,107			19
Parent and inter-segment eliminations	533			(3,615		)	4,148			NM
Total non-interest income	$	63,995		$	50,935		$	13,060		26	%
Net revenue:
Community banking	$	170,117		$	160,035		$	10,082		6	%
Specialty finance	33,249			30,261			2,988			10
Wealth management	21,467			18,656			2,811			15
Parent and inter-segment eliminations	(25,014		)	(29,747		)	4,733			16
Total net revenue	$	199,819		$	179,205		$	20,614		12	%
Segment profit:
Community banking	$	34,227		$	29,414		$	4,813		16	%
Specialty finance	13,838			10,969			2,869			26
Wealth management	3,154			2,484			670			27
Parent and inter-segment eliminations	(16,912		)	(17,272		)	360			2
Total segment profit	$	34,307		$	25,595		$	8,712		34	%
Segment assets:
Community banking	$	17,339,140		$	16,234,511		$	1,104,629		7	%
Specialty finance	4,163,795			3,711,459			452,336			12
Wealth management	98,016			96,125			1,891			2
Parent and inter-segment eliminations	(3,987,405		)	(3,465,813		)	(521,592		)	(15	)
Total segment assets	$	17,613,546		$	16,576,282		$	1,037,264		6	%

NM - Not Meaningful

	Six months ended June 30,						$ Change in Contribution			% Change  in Contribution
(Dollars in thousands)	2013			2012
Net interest income:
Community banking	$	250,949		$	244,150		$	6,799		3	%
Specialty finance	62,550			56,280			6,270			11
Wealth management	3,660			4,416			(756		)	(17	)
Parent and inter-segment eliminations	(50,622		)	(50,681		)	59			—
Total net interest income	$	266,537		$	254,165		$	12,372		5	%
Non-interest income:
Community banking	$	82,484		$	68,805		$	13,679		20	%
Specialty finance	3,482			2,938			544			19
Wealth management	36,927			31,201			5,726			18
Parent and inter-segment eliminations	(1,519		)	(4,986		)	3,467			70
Total non-interest income	$	121,374		$	97,958		$	23,416		24	%
Net revenue:
Community banking	$	333,433		$	312,955		$	20,478		7	%
Specialty finance	66,032			59,218			6,814			12
Wealth management	40,587			35,617			4,970			14
Parent and inter-segment eliminations	(52,141		)	(55,667		)	3,526			6
Total net revenue	$	387,911		$	352,123		$	35,788		10	%
Segment profit:
Community banking	$	67,874		$	56,389		$	11,485		20	%
Specialty finance	27,612			23,434			4,178			18
Wealth management	5,391			3,980			1,411			35
Parent and inter-segment eliminations	(34,518		)	(34,998		)	480			1
Total segment profit	$	66,359		$	48,805		$	17,554		36	%