Segment information

6 Months Ended

Jun. 30, 2011

14. Segment information

Reportable segments have been determined based upon the Company’s internal profitability reporting system, which is organized by strategic business unit. Certain strategic business units have been combined for segment information reporting purposes where the nature of the products and services, the type of customer and the distribution of those products and services are similar. The reportable segments are Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking and Retail Banking.

The financial information of the Company’s segments was compiled utilizing the accounting policies described in note 22 to the Company’s consolidated financial statements as of and for the year ended December 31, 2010. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, the financial information of the reported segments is not necessarily comparable with similar information reported by other financial institutions. As also described in note 22 to the Company’s 2010 consolidated financial statements, neither goodwill nor core deposit and other intangible assets (and the amortization charges associated with such assets) resulting from acquisitions of financial institutions have been allocated to the Company’s reportable segments, but are included in the “All Other” category. The Company does, however, assign such intangible assets to business units for purposes of testing for impairment.

Information about the Company’s segments is presented in the following table:


	Three months ended June 30
	2011							2010
	Total		Inter- segment			Net		Total		Inter- segment			Net
	revenues(a)		revenues			income (loss)		revenues(a)		revenues			income (loss)
	(in thousands)
Business Banking	$	104,012		971			26,584		102,610		—			26,552
Commercial Banking		228,564		1,190			95,111		194,575		—			81,612
Commercial Real Estate		134,066		448			65,058		109,487		39			43,667
Discretionary Portfolio		112,383		(4,419	)		58,362		5,580		(2,500	)		(4,073	)
Residential Mortgage Banking		58,305		8,699			5,966		65,766		8,876			(467	)
Retail Banking		311,484		2,967			54,645		315,638		2,690			67,080
All Other		139,044		(9,856	)		16,632		47,128		(9,105	)		(25,622	)

Total	$	1,087,858		—			322,358		840,784		—			188,749


	Six months ended June 30
	2011									2010
	Total			Inter- segment			Net			Total			Inter- segment			Net
	revenues		(a)	revenues			income (loss)			revenues		(a)	revenues			income (loss)
	(in thousands)
Business Banking	$	203,789			1,933			52,884			204,406			—			51,896
Commercial Banking		442,176			2,356			183,442			386,981			—			158,480
Commercial Real Estate		259,372			804			114,068			219,900			57			87,420
Discretionary Portfolio		154,866			(12,206	)		74,489			(6,653	)		(5,247	)		(20,235	)
Residential Mortgage Banking		116,153			19,006			10,751			128,883			17,073			128
Retail Banking		606,532			5,954			107,371			623,113			5,377			126,117
All Other		188,194			(17,847	)		(14,374	)		98,194			(17,260	)		(64,102	)

Total	$	1,971,082			—			528,631			1,654,824			—			339,704


	Average total assets
	Six months ended				Year ended
	June 30				December 31
	2011		2010		2010
	(in millions)
Business Banking	$	4,861		4,884		4,843
Commercial Banking		16,856		15,504		15,461
Commercial Real Estate		14,227		13,255		13,194
Discretionary Portfolio		14,012		14,699		14,690
Residential Mortgage Banking		1,940		2,188		2,217
Retail Banking		11,776		12,191		12,079
All Other		6,590		5,886		5,896

Total	$	70,262		68,607		68,380


(a)		Total revenues are comprised of net interest income and other income. Net interest income is the difference between taxable-equivalent interest earned on assets and interest paid on liabilities by a segment and a funding charge (credit) based on the Company’s internal funds transfer and allocation methodology. Segments are charged a cost to fund any assets (e.g. loans) and are paid a funding credit for any funds provided (e.g. deposits). The taxable-equivalent adjustment aggregated $6,468,000 and

$6,105,000 for the three-month periods ended June 30, 2011 and 2010, respectively, and $12,795,000 and $12,028,000 for the six-month periods ended June 30, 2011 and 2010, respectively, and is eliminated in “All Other” total revenues. Intersegment revenues are included in total revenues of the reportable segments. The elimination of intersegment revenues is included in the determination of “All Other” total revenues.