Segment Information

9 Months Ended

Sep. 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 September 30,						$ Change in Contribution			% Change  in Contribution
(Dollars in thousands)	2013			2012
Net interest income:
Community banking	$	133,378		$	124,684		$	8,694		7	%
Specialty finance	32,742			32,182			560			2
Wealth management	1,624			524			1,100			NM
Parent and inter-segment eliminations	(25,962		)	(24,815		)	(1,147		)	(5	)
Total net interest income	$	141,782		$	132,575		$	9,207		7	%
Non-interest income:
Community banking	$	37,727		$	48,912		$	(11,185	)	(23	)%
Specialty finance	2,125			1,074			1,051			98
Wealth management	19,044			16,115			2,929			18
Parent and inter-segment eliminations	(4,234		)	(3,156		)	(1,078		)	(34	)
Total non-interest income	$	54,662		$	62,945		$	(8,283	)	(13	)%
Net revenue:
Community banking	$	171,105		$	173,596		$	(2,491	)	(1	)%
Specialty finance	34,867			33,256			1,611			5
Wealth management	20,668			16,639			4,029			24
Parent and inter-segment eliminations	(30,196		)	(27,971		)	(2,225		)	(8	)
Total net revenue	$	196,444		$	195,520		$	924		—	%
Segment profit:
Community banking	$	36,279		$	39,663		$	(3,384	)	(9	)%
Specialty finance	14,826			12,967			1,859			14
Wealth management	2,702			1,317			1,385			NM
Parent and inter-segment eliminations	(18,244		)	(21,645		)	3,401			16
Total segment profit	$	35,563		$	32,302		$	3,261		10	%
Segment assets:
Community banking	$	17,375,033		$	16,877,673		$	497,360		3	%
Specialty finance	4,222,537			3,796,745			425,792			11
Wealth management	101,707			95,128			6,579			7
Parent and inter-segment eliminations	(4,016,729		)	(3,750,954		)	(265,775		)	(7	)
Total segment assets	$	17,682,548		$	17,018,592		$	663,956		4	%

NM - Not Meaningful

	Nine months ended September 30,						$ Change in Contribution			% Change  in Contribution
(Dollars in thousands)	2013			2012
Net interest income:
Community banking	$	384,327		$	368,834		$	15,493		4	%
Specialty finance	95,292			88,462			6,830			8
Wealth management	5,284			4,940			344			7
Parent and inter-segment eliminations	(76,584		)	(75,496		)	(1,088		)	(1	)
Total net interest income	$	408,319		$	386,740		$	21,579		6	%
Non-interest income:
Community banking	$	120,211		$	117,717		$	2,494		2	%
Specialty finance	5,607			4,012			1,595			40
Wealth management	55,971			47,316			8,655			18
Parent and inter-segment eliminations	(5,753		)	(8,142		)	2,389			29
Total non-interest income	$	176,036		$	160,903		$	15,133		9	%
Net revenue:
Community banking	$	504,538		$	486,551		$	17,987		4	%
Specialty finance	100,899			92,474			8,425			9
Wealth management	61,255			52,256			8,999			17
Parent and inter-segment eliminations	(82,337		)	(83,638		)	1,301			2
Total net revenue	$	584,355		$	547,643		$	36,712		7	%
Segment profit:
Community banking	$	104,153		$	96,052		$	8,101		8	%
Specialty finance	42,438			36,401			6,037			17
Wealth management	8,093			5,297			2,796			53
Parent and inter-segment eliminations	(52,762		)	(56,643		)	3,881			7
Total segment profit	$	101,922		$	81,107		$	20,815		26	%