Segment Reporting

The Corporation utilizes a risk-based internal profitability measurement system to provide strategic business unit reporting. The profitability measurement system is based on internal management methodologies designed to produce consistent results and reflect the underlying economics of the units. 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 three reportable segments are Corporate and Commercial Specialty; Community, Consumer, and Business; and Risk Management and Shared Services, with no segment representing more than half of the assets of the Corporation as a whole.

The financial information of the Corporation’s segments has been compiled utilizing the accounting policies described in the Corporation's 2014 annual report on Form 10-K with certain exceptions. The more significant of these exceptions are described herein. The Corporation allocates interest income or interest expense using a funds transfer pricing methodology that charges users of funds (assets) interest expense and credits providers of funds (liabilities, primarily deposits) with income based on the maturity, prepayment and / or repricing characteristics of the assets and liabilities. The net effect of this allocation is recorded in the Risk Management and Shared Services segment. A credit provision is allocated to segments based on the expected long-term annual net charge off rates attributable to the credit risk of loans managed by the segment during the period. In contrast, the level of the consolidated provision for credit losses is determined using the methodologies described in the Corporation's 2014 annual report on Form 10-K to assess the overall appropriateness of the allowance for credit losses. The net effect of the credit provision is recorded in Risk Management and Shared Services. Indirect expenses incurred by certain centralized support areas are allocated to segments based on actual usage (for example, volume measurements) and other criteria. Certain types of administrative expense and bank-wide expense accruals (including amortization of core deposit and other intangible assets associated with acquisitions) are generally not allocated to segments. Income taxes are allocated to segments based on the Corporation’s estimated effective tax rate, with certain segments adjusted for any tax-exempt income or non-deductible expenses. Equity is allocated to the segments based on regulatory capital requirements and in proportion to an assessment of the inherent risks associated with the business of the segment (including interest, credit and operating risk).

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 U.S. generally accepted accounting principles. As a result, reported segments and the financial information of the reported segments are 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 previously reported segment financial data. During 2015, certain organizational and methodology changes were made and, accordingly, 2014 results have been restated and presented on a comparable basis.

A description of each business segment is presented below.

Corporate and Commercial Specialty — The Corporate and Commercial Specialty segment serves a wide range of customers including larger businesses, developers, non-profits, municipalities, and financial institutions. In serving this segment we compete based on an in-depth understanding of our customers’ financial needs, the ability to match market competitive solutions to those needs, and the highest standards of relationship and service excellence in the delivery of these services. Delivery of services is provided through our corporate and commercial units, our commercial real estate unit, as well as our specialized industries and commercial financial services units. Within this segment we provide the following products and services: (1) lending solutions, such as commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, and asset based lending; for our larger clients we also provide loan syndications; (2) deposit and cash management solutions such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions; and information services; and (3) specialized financial services such as swaps, capital markets, foreign exchange, and international banking solutions.

Community, Consumer, and Business — The Community, Consumer, and Business segment serves individuals, as well as small and mid-size businesses. In serving this segment we compete based on providing a broad range of solutions to meet the needs of our customers in their entire financial lifecycle, convenient access to our services through multiple channels such as branches, phone based services, online and mobile banking, and a relationship based business model which assists our customers in navigating any changes and challenges in their financial circumstances. Delivery of services is provided through our various Consumer Banking, Community Banking, and Private Client units. Within this segment we provide the following products and services: (1) lending solutions such as residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; (2) deposit and transactional solutions such as checking, credit, debit and pre-paid cards, online banking and bill pay, and money transfer services; (3) investable funds solutions such as savings, money market deposit accounts, IRA accounts, certificates of deposit, fixed and variable annuities, full-service, discount and on-line investment brokerage; investment advisory services; trust and investment management accounts; (4) insurance, benefits related products and services; and (5) fiduciary services such as administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management.

Risk Management and Shared Services — The Risk Management and Shared Services segment includes Corporate Risk Management, Credit Administration, Finance, Treasury, Operations and Technology, which are key shared functions. The segment also includes Parent Company activity, intersegment eliminations and residual revenue and expenses, representing the difference between actual amounts incurred and the amounts allocated to operating segments, including interest rate risk residuals (funds transfer pricing mismatches) and credit risk and provision residuals (long term credit charge mismatches). The earning assets within this segment include the Corporation’s investment portfolio and capital includes both allocated as well as any remaining unallocated capital.

Information about the Corporation’s segments is presented below.



Segment Income Statement Data
($ in Thousands)	Corporate and Commercial Specialty			Community, Consumer, and Business			Risk Management and Shared Services			Consolidated Total
Six Months Ended June 30, 2015
Net interest income	$	151,846		$	173,742		$	8,713		$	334,301
Noninterest income	24,918			135,131			6,548			166,597
Total revenue	176,764			308,873			15,261			500,898
Credit provision *	19,460			13,663			(23,623		)	9,500
Noninterest expense	69,350			244,017			37,704			351,071
Income before income taxes	87,954			51,193			1,180			140,327
Income tax expense (benefit)	30,429			17,918			(4,092		)	44,255
Net income	$	57,525		$	33,275		$	5,272		$	96,072
Return on average allocated capital (ROT1CE) **	12.1		%	10.4		%	2.4		%	10.4		%
Six Months Ended June 30, 2014
Net interest income	$	148,499		$	145,343		$	39,834		$	333,676
Noninterest income	24,083			113,686			7,999			145,768
Total revenue	172,582			259,029			47,833			479,444
Credit provision *	25,947			9,760			(25,707		)	10,000
Noninterest expense	75,513			223,363			36,707			335,583
Income before income taxes	71,122			25,906			36,833			133,861
Income tax expense	24,378			9,067			8,852			42,297
Net income	$	46,744		$	16,839		$	27,981		$	91,564
Return on average allocated capital (ROT1CE) **	10.4		%	6.4		%	11.3		%	9.5		%
Segment Balance Sheet Data
($ in Thousands)	Corporate and Commercial Specialty			Community, Consumer, and Business			Risk Management and Shared Services			Consolidated Total
Average Balances for YTD 2Q 2015
Average earning assets	$	9,321,388		$	8,618,054		$	6,268,081		$	24,207,523
Average loans	9,311,672			8,618,054			73,015			18,002,741
Average deposits	5,571,627			10,693,412			3,077,242			19,342,281
Average allocated capital (T1CE) **	$	955,799		$	643,796		$	212,466		$	1,812,061
Average Balances for YTD 2Q 2014
Average earning assets	$	9,020,912		$	7,308,806		$	5,887,073		$	22,216,791
Average loans	9,010,272			7,308,806			87,756			16,406,834
Average deposits	5,147,717			9,636,263			2,298,077			17,082,057
Average allocated capital (T1CE) **	$	908,844		$	531,307		$	455,478		$	1,895,629



Segment Income Statement Data
($ in Thousands)	Corporate and Commercial Specialty			Community, Consumer, and Business			Risk Management and Shared Services			Consolidated Total
Three Months Ended June 30, 2015
Net interest income	$	76,155		$	87,385		$	2,948		$	166,488
Noninterest income	12,305			69,617			4,599			86,521
Total revenue	88,460			157,002			7,547			253,009
Credit provision *	9,935			6,592			(11,527		)	5,000
Noninterest expense	34,889			125,474			16,453			176,816
Income before income taxes	43,636			24,936			2,621			71,193
Income tax expense (benefit)	15,061			8,728			(1,996		)	21,793
Net income	$	28,575		$	16,208		$	4,617		$	49,400
Return on average allocated capital (ROT1CE) **	11.8		%	10.2		%	5.8		%	10.5		%
Three Months Ended June 30, 2014
Net interest income	$	74,433		$	73,091		$	21,179		$	168,703
Noninterest income	12,230			57,858			2,159			72,247
Total revenue	86,663			130,949			23,338			240,950
Credit provision *	12,915			4,813			(12,728		)	5,000
Noninterest expense	39,792			112,164			15,969			167,925
Income before income taxes	33,956			13,972			20,097			68,025
Income tax expense	11,370			4,891			5,399			21,660
Net income	$	22,586		$	9,081		$	14,698		$	46,365
Return on average allocated capital (ROT1CE) **	9.7		%	6.9		%	12.4		%	9.6		%
Segment Balance Sheet Data
($ in Thousands)	Corporate and Commercial Specialty			Community, Consumer, and Business			Risk Management and Shared Services			Consolidated Total
Average Balances for 2Q15
Average earning assets	$	9,422,805		$	8,709,691		$	6,133,871		$	24,266,367
Average loans	9,411,245			8,709,691			67,369			18,188,305
Average deposits	5,720,064			10,862,330			3,043,816			19,626,210
Average allocated capital (T1CE) **	$	968,690		$	640,256		$	210,873		$	1,819,819
Average Balances for 2Q14
Average earning assets	$	9,188,973		$	7,386,355		$	5,962,187		$	22,537,515
Average loans	9,175,637			7,386,355			84,397			16,646,389
Average deposits	5,055,431			9,731,580			2,385,821			17,172,832
Average allocated capital (T1CE) **	$	930,660		$	526,818		$	434,288		$	1,891,766

* The consolidated credit provision is equal to the actual reported provision for credit losses.
** The Federal Reserve establishes capital adequacy requirements for the Corporation, including Tier 1 capital. Tier 1 capital is comprised of common capital and certain redeemable, non-cumulative preferred stock. Average allocated capital represents average Tier 1 common equity which is defined as average Tier 1 capital excluding qualifying perpetual preferred stock and qualifying trust preferred securities. This is a non-GAAP financial measure. For segment reporting purposes, the ROT1CE reflects return on average allocated Tier 1 common equity ("T1CE"). The ROT1CE for the Risk Management and Shared Services segment and the Consolidated Total is inclusive of the annualized effect of the preferred stock dividends.