SEGMENT INFORMATION (Tables)

3 Months Ended

Sep. 30, 2014

Information about the Reportable Segments

The following table presents information about the reportable segments:
(In thousands)	Mortgage Banking		Consumer (Retail) Banking		Commercial and Corporate		Treasury and Investments		United States Operations		Virgin Islands Operations		Total
For the quarter ended September 30, 2014:
Interest income	$	30,038	$	52,725	$	39,737	$	12,335	$	11,541	$	10,286	$	156,662
Net (charge) credit for transfer of funds		(9,541)		4,162		(3,354)		5,601		3,132		-		-
Interest expense		-		(5,902)		-		(17,323)		(4,855)		(888)		(28,968)
Net interest income		20,497		50,985		36,383		613		9,818		9,398		127,694
(Provision) release for loan and lease losses		(5,261)		(18,634)		(8,900)		-		6,791		(995)		(26,999)
Non-interest income (loss)		3,643		9,409		1,104		(190)		621		1,587		16,174
Direct non-interest expenses		(9,896)		(31,670)		(10,265)		(1,481)		(6,015)		(11,118)		(70,445)
Segment income (loss)	$	8,983	$	10,090	$	18,322	$	(1,058)	$	11,215	$	(1,128)	$	46,424
Average earnings assets	$	2,189,861	$	2,021,207	$	3,398,113	$	2,676,556	$	958,790	$	672,392	$	11,916,919
(In thousands)	Mortgage Banking		Consumer (Retail) Banking		Commercial and Corporate		Treasury and Investments		United States Operations		Virgin Islands Operations		Total
For the quarter ended September 30, 2013:
Interest income	$	27,307	$	57,967	$	43,085	$	14,801	$	9,201	$	9,842	$	162,203
Net (charge) credit for transfer of funds		(8,948)		771		(3,294)		9,223		2,248		-		-
Interest expense		-		(6,933)		-		(18,330)		(5,088)		(947)		(31,298)
Net interest income		18,359		51,805		39,791		5,694		6,361		8,895		130,905
(Provision) release for loan and lease losses		(6,040)		(15,190)		(4,516)		-		2,473		1,078		(22,195)
Non-interest income (loss)		4,812		9,261		1,133		(1,390)		281		1,871		15,968
Direct non-interest expenses		(10,073)		(30,954)		(14,039)		(3,022)		(6,847)		(10,192)		(75,127)
Segment income	$	7,058	$	14,922	$	22,369	$	1,282	$	2,268	$	1,652	$	49,551
Average earnings assets	$	1,981,707	$	2,086,403	$	3,842,877	$	2,666,427	$	766,405	$	665,812	$	12,009,631

	Mortgage Banking		Consumer (Retail) Banking		Commercial and Corporate		Treasury and Investments		United States Operations		Virgin Islands Operations		Total
Nine-month period ended September 30, 2014:
Interest income	$	83,230	$	163,406	$	122,861	$	41,906	$	33,316	$	30,937	$	475,656
Net (charge) credit for transfer of funds		(26,823)		11,933		(9,402)		15,985		8,307		-		-
Interest expense		-		(18,580)		-		(50,867)		(14,507)		(2,781)		(86,735)
Net interest income		56,407		156,759		113,459		7,024		27,116		28,156		388,921
(Provision) release for loan and lease losses		(12,734)		(58,604)		(36,424)		-		23,231		(1,127)		(85,658)
Non-interest income		9,446		30,044		4,021		207		1,773		5,244		50,735
Direct non-interest expenses		(30,068)		(95,195)		(37,537)		(4,121)		(20,504)		(28,806)		(216,231)
Segment income	$	23,051	$	33,004	$	43,519	$	3,110	$	31,616	$	3,467	$	137,767
Average earnings assets	$	2,059,427	$	1,953,726	$	3,731,842	$	2,700,429	$	896,667	$	666,279	$	12,008,370
	Mortgage Banking		Consumer (Retail) Banking		Commercial and Corporate		Treasury and Investments		United States Operations		Virgin Islands Operations		Total
Nine-month period ended September 30, 2013:
Interest income	$	82,996	$	174,210	$	128,890	$	38,845	$	26,905	$	31,252	$	483,098
Net (charge) credit for transfer of funds		(28,850)		(948)		(11,034)		33,738		7,094		-		-
Interest expense		-		(20,774)		-		(60,305)		(16,788)		(2,945)		(100,812)
Net interest income		54,146		152,488		117,856		12,278		17,211		28,307		382,286
(Provision) release for loan and lease losses		(83,572)		(37,513)		(96,848)		-		4,907		(7,756)		(220,782)
Non-interest income (loss)		9,400		29,558		3,922		(67,123)		1,168		5,899		(17,176)
Direct non-interest expenses		(38,291)		(90,820)		(45,620)		(6,977)		(21,101)		(34,686)		(237,495)
Segment (loss) income	$	(58,317)	$	53,713	$	(20,690)	$	(61,822)	$	2,185	$	(8,236)	$	(93,167)
Average earnings assets	$	2,057,792	$	1,970,184	$	4,067,908	$	2,710,260	$	731,143	$	666,989	$	12,204,276

Reconciliation of the Reportable Segment Financial Information

The following table presents a reconciliation of the reportable segment financial information to the consolidated totals:
		Quarter Ended				Nine-Month Period Ended
		September 30,				September 30,
		2014		2013		2014		2013
Net income (loss):
Total income (loss) for segments and other		$	46,424	$	49,551	$	137,767	$	(93,167)
Other non-interest (loss) income (1)			-		(5,908)		(7,280)		(10,798)
Other operating expenses (2)			(23,159)		(24,027)		(68,303)		(70,992)
Income (loss) before income taxes			23,265		19,616		62,184		(174,957)
Income tax expense			(64)		(3,676)		(675)		(4,319)
Total consolidated net income (loss)		$	23,201	$	15,940	$	61,509	$	(179,276)
Average assets:
Total average earning assets for segments		$	11,916,919	$	12,009,631	$	12,008,370	$	12,204,276
Other average earning assets (1)			-		18,382		2,216		19,983
Average non-earning assets			650,624		558,349		654,845		641,427
Total consolidated average assets		$	12,567,543	$	12,586,362	$	12,665,431	$	12,865,686
(1)	The activities related to the Bank's equity interest in CPG/GS are presented as an Other non-interest income (loss) and as Other average earning assets in the table above.
(2)	Expenses pertaining to corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment are not included in the reported financial results of the operating segments. The unallocated corporate expenses include certain general and administrative expenses and related depreciation and amortization expenses.