Segments

3 Months Ended

Mar. 31, 2020

SegmentsThe 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 160 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 and are instead included in the Other 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 changes are reflected in prior year information presented below.


(In thousands)	Consumer		Commercial		Wealth		Segment Totals		Other/Elimination		Consolidated Totals







Three Months Ended March 31, 2020
Net interest income	$	78,981	$	85,707	$	12,959	$	177,647	$	23,418	$	201,065
Provision for credit losses	(11,206)		356		(3)		(10,853)		(47,100)		(57,953)
Non-interest income	34,085		49,888		47,410		131,383		(7,720)		123,663
Investment securities losses, net	—		—		—		—		(13,301)		(13,301)
Non-interest expense	(77,219)		(80,936)		(31,861)		(190,016)		(3,682)		(193,698)
Income before income taxes	$	24,641	$	55,015	$	28,505	$	108,161	$	(48,385)	$	59,776







Three Months Ended March 31, 2019
Net interest income	$	76,692	$	86,081	$	11,726	$	174,499	$	28,989	$	203,488
Provision for loan losses	(11,049)		(618)		33		(11,634)		(829)		(12,463)
Non-interest income	29,171		47,915		43,534		120,620		620		121,240
Investment securities losses, net	—		—		—		—		(925)		(925)
Non-interest expense	(73,429)		(76,918)		(30,555)		(180,902)		(10,523)		(191,425)
Income before income taxes	$	21,385	$	56,460	$	24,738	$	102,583	$	17,332	$	119,915

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 credit losses in this category contains the difference between net loan charge-offs assigned directly to the segments and the recorded provision for credit 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.