Segment Information

9 Months Ended

Sep. 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:

		Contribution			Contribution			Contribution			Contribution
	Three Months Ended September 30,						$ Change in Contribution			% Change  in Contribution
(Dollars in thousands)	2011			2010
Net interest income:
Community banking	$	109,242		$	95,373		$	13,869			15	%
Specialty finance		28,802			22,844			5,958			26
Wealth management		2,883			399			2,484			NM
Parent and inter-segment eliminations		(22,517	)		(15,636	)		(6,881	)		(44	)
Total net interest income	$	118,410		$	102,980		$	15,430			15	%
Non-interest income:
Community banking	$	55,714		$	44,304		$	11,410			26	%
Specialty finance		784			745			39			5
Wealth management		14,304			10,952			3,352			31
Parent and inter-segment eliminations		(3,555	)		(1,345	)		(2,210	)		NM
Total non-interest income	$	67,247		$	54,656		$	12,591			23	%
Net revenue:
Community banking	$	164,956		$	139,677		$	25,279			18	%
Specialty finance		29,586			23,589			5,997			25
Wealth management		17,187			11,351			5,836			51
Parent and inter-segment eliminations		(26,072	)		(16,981	)		(9,091	)		(54	)
Total net revenue	$	185,657		$	157,636		$	28,021			18	%
Segment profit (loss):
Community banking	$	32,887		$	22,433		$	10,454			47	%
Specialty finance		12,765			9,169			3,596			39
Wealth management		2,357			(11	)		2,368			NM
Parent and inter-segment eliminations		(17,807	)		(11,493	)		(6,314	)		(55	)
Total segment profit (loss)	$	30,202		$	20,098		$	10,104			50	%
Segment assets:
Community banking	$	15,110,396		$	13,308,912		$	1,801,484			14	%
Specialty finance		3,255,916			2,915,956			339,960			12
Wealth management		88,551			66,666			21,885			33
Parent and inter-segment eliminations		(2,540,059	)		(2,191,166	)		(348,893	)		(16	)
Total segment assets	$	15,914,804		$	14,100,368		$	1,814,436			13	%
		Contributionxxxx			Contributionxxxx			Contributionxxxx			Contributionxxxx
	Nine Months Ended September 30,						$ Change in Contribution			% Change  in Contribution
(Dollars in thousands)	2011			2010
Net interest income:
Community banking	$	312,053		$	280,834		$	31,219			11	%
Specialty finance		84,808			68,255			16,553			24
Wealth management		6,322			5,378			944			18
Parent and inter-segment eliminations		(66,453	)		(51,308	)		(15,145	)		(30	)
Total net interest income	$	336,730		$	303,159		$	33,571			11	%
Non-interest income:
Community banking	$	109,172		$	101,118		$	8,054			8	%
Specialty finance		2,282			12,928			(10,646	)		(82	)
Wealth management		40,734			32,709			8,025			25
Parent and inter-segment eliminations		(7,402	)		945			(8,347	)		NM
Total non-interest income	$	144,786		$	147,700		$	(2,914	)		(2	)%
Net revenue:
Community banking	$	421,225		$	381,952		$	39,273			10	%
Specialty finance		87,090			81,183			5,907			7
Wealth management		47,056			38,087			8,969			24
Parent and inter-segment eliminations		(73,855	)		(50,363	)		(23,492	)		(47	)
Total net revenue	$	481,516		$	450,859		$	30,657			7	%
Segment profit:
Community banking	$	61,158		$	53,060		$	8,098			15	%
Specialty finance		40,730			24,583			16,147			66
Wealth management		5,060			2,362			2,698			NM
Parent and inter-segment eliminations		(48,594	)		(30,880	)		(17,714	)		(57	)
Total segment profit	$	58,354		$	49,125		$	9,229			19	%

NM - Not Meaningful