Segments

The Company segregates financial information for use in assessing its performance and allocating resources among three operating segments: Consumer, Commercial and Wealth. The Consumer segment consists of various consumer loan and deposit products offered through its retail branch network of approximately 180 locations. This segment also includes indirect and other consumer loan financing businesses, along with debit and credit card loan and fee businesses. Residential mortgage origination, sales and servicing functions are included in this consumer segment, but residential mortgage loans retained by the Company are not considered part of this segment. The Commercial segment provides corporate lending, leasing, and international services, along with business and governmental deposit products and commercial cash management services. This segment includes both merchant and commercial bank card products. It also includes the Capital Markets Group which sells fixed income securities and provides safekeeping and accounting services to its business and correspondent bank customers. The Wealth segment provides traditional trust and estate planning, advisory and discretionary investment management, and brokerage services. This segment also provides various loan and deposit related services to its private banking customers.

The following table presents selected financial information by segment and reconciliations of combined segment totals to consolidated totals. There were no material intersegment revenues among the three segments. Management periodically makes changes to methods of assigning costs and income to its business segments to better reflect operating results. If appropriate, these change are reflected in prior year information presented below.



(In thousands)	Consumer			Commercial			Wealth			Segment Totals			Other/Elimination			Consolidated Totals
Three Months Ended June 30, 2017
Net interest income	$	69,274		$	81,718		$	11,933		$	162,925		$	19,882		$	182,807
Provision for loan losses	(10,802		)	111			24			(10,667		)	(91		)	(10,758		)
Non-interest income	34,459			49,746			38,851			123,056			28			123,084
Investment securities gains, net	—			—			—			—			1,651			1,651
Non-interest expense	(73,603		)	(74,054		)	(29,446		)	(177,103		)	(7,491		)	(184,594		)
Income before income taxes	$	19,328		$	57,521		$	21,362		$	98,211		$	13,979		$	112,190
Six Months Ended June 30, 2017
Net interest income	$	136,628		$	161,505		$	23,771		$	321,904		$	39,176		$	361,080
Provision for loan losses	(20,464		)	624			1			(19,839		)	(2,047		)	(21,886		)
Non-interest income	66,017			96,879			76,557			239,453			697			240,150
Investment securities gains, net	—			—			—			—			879			879
Non-interest expense	(145,126		)	(147,839		)	(59,795		)	(352,760		)	(18,664		)	(371,424		)
Income before income taxes	$	37,055		$	111,169		$	40,534		$	188,758		$	20,041		$	208,799
Three Months Ended June 30, 2016
Net interest income	$	67,227		$	77,249		$	10,947		$	155,423		$	16,406		$	171,829
Provision for loan losses	(8,775		)	1,468			(9		)	(7,316		)	(1,900		)	(9,216		)
Non-interest income	33,038			48,289			36,618			117,945			(1,375		)	116,570
Investment securities losses, net	—			—			—			—			(744		)	(744		)
Non-interest expense	(70,522		)	(70,637		)	(28,356		)	(169,515		)	(7,574		)	(177,089		)
Income before income taxes	$	20,968		$	56,369		$	19,200		$	96,537		$	4,813		$	101,350
Six Months Ended June 30, 2016
Net interest income	$	133,791		$	153,266		$	21,822		$	308,879		$	26,725		$	335,604
Provision for loan losses	(17,500		)	1,487			(115		)	(16,128		)	(2,527		)	(18,655		)
Non-interest income	62,935			99,408			71,020			233,363			2,231			235,594
Investment securities losses, net	—			—			—			—			(1,739		)	(1,739		)
Non-interest expense	(139,526		)	(140,250		)	(56,944		)	(336,720		)	(17,842		)	(354,562		)
Income before income taxes	$	39,700		$	113,911		$	35,783		$	189,394		$	6,848		$	196,242

The information presented above was derived from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. This information is based on internal management accounting procedures and methods, which have been developed to reflect the underlying economics of the businesses. The methodologies are applied in connection with funds transfer pricing and assignment of overhead costs among segments. Funds transfer pricing was used in the determination of net interest income by assigning a standard cost (credit) for funds used (provided) by assets and liabilities based on their maturity, prepayment and/or repricing characteristics.

The segment activity, as shown above, includes both direct and allocated items. Amounts in the “Other/Elimination” column include activity not related to the segments, such as that relating to administrative functions, the investment securities portfolio, and the effect of certain expense allocations to the segments. The provision for loan losses in this category contains the difference between net loan charge-offs assigned directly to the segments and the recorded provision for loan loss expense. Included in this category’s net interest income are earnings of the investment portfolio, which are not allocated to a segment.

The performance measurement of the operating segments is based on the management structure of the Company and is not necessarily comparable with similar information for any other financial institution. The information is also not necessarily indicative of the segments' financial condition and results of operations if they were independent entities.