Segment information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment information

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 of Notes to Financial Statements in the 2015 Annual Report.  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.  Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data.

As also described in note 22 in the 2015 Annual Report, 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.

14. Segment information, continued

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

	Three months ended September 30
	2016								2015
	Total revenues(a)		Inter- segment revenues			Net income (loss)			Total revenues(a)		Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	116,513		1,086			21,422		$	112,650		1,167			23,995
Commercial Banking		268,683		950			102,796			270,554		1,097			108,422
Commercial Real Estate		205,562		463			90,065			181,478		469			85,312
Discretionary Portfolio		114,391		(14,795	)		50,773			13,773		(5,365	)		5,113
Residential Mortgage Banking		108,576		22,051			22,924			99,518		12,918			21,150
Retail Banking		353,016		3,052			69,506			308,520		3,292			64,721
All Other		182,949		(12,807	)		(7,502	)		146,033		(13,578	)		(28,312	)
Total	$	1,349,690		—			349,984		$	1,132,526		—			280,401

	Nine months ended September 30
	2016								2015
	Total revenues(a)		Inter- segment revenues			Net income (loss)			Total revenues(a)		Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	344,562		3,274			69,617		$	332,341		3,334			74,160
Commercial Banking		787,781		2,917			309,515			774,392		3,281			312,926
Commercial Real Estate		575,117		1,299			254,682			535,909		978			250,501
Discretionary Portfolio		324,195		(43,726	)		151,522			49,724		(16,184	)		21,823
Residential Mortgage Banking		309,393		62,955			59,981			310,843		36,741			75,462
Retail Banking		1,037,727		9,198			204,291			914,484		9,688			202,415
All Other		575,885		(35,917	)		(65,065	)		494,779		(37,838	)		(128,585	)
Total	$	3,954,660		—			984,543		$	3,412,472		—			808,702

	Average total assets
	Nine months ended September 30				Year ended December 31
	2016		2015		2015
	(in millions)
Business Banking	$	5,442		5,321		5,339
Commercial Banking		25,363		24,041		24,143
Commercial Real Estate		20,571		18,632		18,827
Discretionary Portfolio		41,253		23,153		26,648
Residential Mortgage Banking		2,578		3,007		2,918
Retail Banking		11,739		10,912		11,035
All Other		16,951		12,279		12,870
Total	$	123,897		97,345		101,780

(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 owed by a segment and a funding charge (credit) based on the Company's internal funds transfer pricing 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 $6,725,000 and $6,248,000 for the three-month periods ended September 30, 2016 and 2015, respectively, and $19,579,000 and $18,106,000 for the nine-month periods ended September 30, 2016 and 2015, 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.