Segment information

6 Months Ended

Jun. 30, 2019

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 2018 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.

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

	Three Months Ended June 30
	2019								2018
	Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)			Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)
	(In thousands)

Business Banking	$	140,767		1,004			42,250		$	136,029		912			43,007
Commercial Banking		278,110		887			123,507			269,499		928			126,391
Commercial Real Estate		225,442		406			121,629			205,541		385			112,691
Discretionary Portfolio		60,976		(9,291	)		38,040			58,976		(10,554	)		29,113
Residential Mortgage Banking		96,449		17,150			7,642			82,167		16,047			15,402
Retail Banking		436,593		2,787			140,494			420,540		2,707			143,089
All Other		315,239		(12,943	)		(302	)		293,449		(10,425	)		23,467
Total	$	1,553,576		—			473,260		$	1,466,201		—			493,160

	Six Months Ended June 30
	2019								2018
	Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)			Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)
	(In thousands)

Business Banking	$	280,089		1,860			85,521		$	263,913		1,830			80,725
Commercial Banking		545,600		1,727			255,725			535,895		1,778			251,856
Commercial Real Estate		444,615		760			239,127			408,148		725			220,994
Discretionary Portfolio		124,893		(18,590	)		77,212			109,014		(21,386	)		48,852
Residential Mortgage Banking		180,210		31,664			20,583			164,625		31,468			30,348
Retail Banking		867,484		5,298			285,560			814,016		5,572			266,469
All Other		661,510		(22,719	)		(7,726	)		604,803		(19,987	)		(53,474	)
Total	$	3,104,401		—			956,002		$	2,900,414		—			845,770

14. Segment information, continued

	Average Total Assets
	Six Months Ended June 30				Year Ended December 31
	2019		2018		2018
	(In millions)

Business Banking	$	5,724		5,656		5,631
Commercial Banking		27,981		26,542		26,626
Commercial Real Estate		23,720		22,848		22,885
Discretionary Portfolio		29,888		33,277		32,123
Residential Mortgage Banking		2,173		2,186		2,161
Retail Banking		14,580		13,403		13,656
All Other		13,601		13,109		13,877
Total	$	117,667		117,021		116,959

(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 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 $5,925,000 and $5,397,000 for the three-month periods ended June 30, 2019 and 2018, respectively, and $11,892,000 and $10,206,000 for the six-month periods ended June 30, 2019 and 2018, 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.