SEGMENT REPORTING

6 Months Ended

Jun. 30, 2017

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 11 - SEGMENT REPORTING

The Company is a financial holding company with subsidiaries engaged in the business of banking and activities closely related to banking.  The Company determines reportable segments based upon the services offered, the significance of those services to the Company's financial condition and operating results and management's regular review of the operating results of those services.  The Company's primary segment is the Banking Services Group, which includes providing a full range of deposit products, commercial loans and consumer loans.  The Company has also designated four additional reportable segments --Mortgage, Insurance Agencies, Wealth Management, and General Corporate and Other.  The Company’s Mortgage segment includes the mortgage banking activities of originating mortgage loans, selling mortgage loans in the secondary market and servicing the mortgage loans that are sold on a servicing retained basis.  The Company's insurance agencies serve as agents in the sale of commercial lines of insurance and full lines of property and casualty, life, health and employee benefits products and services.  The Wealth Management segment offers individuals, businesses, governmental institutions and non-profit entities a wide range of solutions to help protect, grow and transfer wealth.  Offerings include credit related products, trust and investment management, asset management, retirement and savings solutions, estate planning and annuity products.  The General Corporate and Other segment includes other activities not allocated to Banking Services Group, Mortgage, Insurance Agencies or Wealth Management segments. 

Results of operations and selected financial information by segment for the three-month and six-month periods ended June 30, 2017 and 2016 were as follows:

	Banking Services Group	Mortgage	Insurance Agencies	Wealth Management	General Corporate and Other	Total
	(In thousands)
Three months ended June 30, 2017
Results of Operations
Net interest revenue	$        113,117	$       4,322	$           11	$                8	$                20	$        117,478
Provision for credit losses	-	-	-	-	1,000	1,000
Net interest revenue after provision for credit losses	113,117	4,322	11	8	(980)	116,478
Noninterest revenue	21,681	6,134	31,286	5,759	3,270	68,130
Noninterest expense	75,627	6,917	26,676	4,181	14,152	127,553
Income before income taxes	59,171	3,539	4,621	1,586	(11,862)	57,055
Income tax expense (benefit)	20,926	1,320	1,846	591	(5,517)	19,166
Net income	$          38,245	$       2,219	$      2,775	$            995	$          (6,345)	$          37,889
Selected Financial Information
Total assets at end of period	$  11,462,105	$   639,130	$  228,507	$       22,475	$    2,490,913	$   14,843,130
Depreciation and amortization	5,550	153	1,180	25	625	7,533

	Banking Services Group	Mortgage	Insurance Agencies	Wealth Management	General Corporate and Other	Total
	(In thousands)
Three months ended June 30, 2016
Results of Operations
Net interest revenue	$        109,851	$       2,820	$           16	$                2	$             (373)	$        112,316
Provision for credit losses	-	-	-	-	2,000	2,000
Net interest revenue after provision for credit losses	109,851	2,820	16	2	(2,373)	110,316
Noninterest revenue	23,309	7,868	28,543	5,766	3,040	68,526
Noninterest expense	76,000	6,583	24,781	4,397	15,800	127,561
Income before income taxes	57,160	4,105	3,778	1,371	(15,133)	51,281
Income tax expense (benefit)	19,386	1,531	1,511	511	(6,350)	16,589
Net income	$          37,774	$       2,574	$      2,267	$            860	$          (8,783)	$          34,692
Selected Financial Information
Total assets at end of period	$  10,865,604	$   489,754	$  219,280	$       23,120	$    2,539,402	$   14,137,160
Depreciation and amortization	5,329	146	1,034	29	631	7,169

	Banking Services Group	Mortgage	Insurance Agencies	Wealth Management	General Corporate and Other	Total
	(In thousands)
Six months ended June 30, 2017
Results of Operations
Net interest revenue	$        224,169	$       7,852	$           21	$               13	$                34	$        232,089
Provision for credit losses	-	-	-	-	2,000	2,000
Net interest revenue after provision for credit losses	224,169	7,852	21	13	(1,966)	230,089
Noninterest revenue	43,558	15,126	64,399	11,375	4,541	138,999
Noninterest expense	150,476	13,779	52,650	8,129	29,628	254,662
Income before income taxes	117,251	9,199	11,770	3,259	(27,053)	114,426
Income tax expense (benefit)	40,558	3,420	4,690	1,212	(11,436)	38,444
Net income	$          76,693	$       5,779	$      7,080	$          2,047	$        (15,617)	$          75,982
Selected Financial Information
Total assets at end of period	$  11,462,105	$   639,130	$  228,507	$        22,475	$    2,490,913	$   14,843,130
Depreciation and amortization	11,053	305	2,368	51	1,271	15,048

	Banking Services Group	Mortgage	Insurance Agencies	Wealth Management	General Corporate and Other	Total
	(In thousands)
Six months ended June 30, 2016
Results of Operations
Net interest revenue	$        218,751	$       5,431	$           35	$                2	$             (744)	$        223,475
Provision for credit losses	-	-	-	-	3,000	3,000
Net interest revenue after provision for credit losses	218,751	5,431	35	2	(3,744)	220,475
Noninterest revenue	46,015	9,698	61,908	11,301	4,331	133,253
Noninterest expense	152,905	12,446	50,263	8,496	44,963	269,073
Income before income taxes	111,861	2,683	11,680	2,807	(44,376)	84,655
Income tax expense (benefit)	38,330	973	4,651	1,018	(17,558)	27,414
Net income	$          73,531	$       1,710	$      7,029	$         1,789	$        (26,818)	$          57,241
Selected Financial Information
Total assets at end of period	$  10,865,604	$   489,754	$  219,280	$       23,120	$    2,539,402	$   14,137,160
Depreciation and amortization	10,643	291	2,094	57	1,270	14,355

The change in income for the Banking Services Group for the three months and six months ended June 30, 2017 compared to the same periods in 2016 is mainly due to an increase in interest revenue for loans and leases due to the balance increase of net loans and leases.  The change in income for the Mortgage segment for the three months and six months ended June 30, 2017 compared to the same periods in 2016 is primarily a result of the negative MSR adjustment of $1.5 million and approximately $575,000 recorded during the second quarter and first six months of 2017, respectively, compared to a negative MSR adjustment of $4.1 million and $12.0 million recorded during the second quarter and first six months of 2016, respectively.  The decrease in the loss in the General, Corporate and Other segment when comparing comparable periods is a result of the pre-tax charge of $10.3 million related to a liability associated with an ongoing regulatory matter recorded during the first six months of 2016 with no such charge recorded during the first six months of 2017.