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, as noted below. 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
Nine Months Ended September 30, 2015
Net interest income	$	230,130		$	261,951		$	12,729		$	504,810
Noninterest income	36,222			200,042			10,249			246,513
Total revenue	266,352			461,993			22,978			751,323
Credit provision *	30,312			19,625			(32,437		)	17,500
Noninterest expense	106,643			366,410			49,454			522,507
Income before income taxes	129,397			75,958			5,961			211,316
Income tax expense (benefit)	44,384			26,585			(5,163		)	65,806
Net income	$	85,013		$	49,373		$	11,124		$	145,510
Return on average allocated capital (ROCET1) **	11.8		%	10.3		%	3.9		%	10.3		%
Nine Months Ended September 30, 2014
Net interest income	$	220,973		$	227,409		$	57,924		$	506,306
Noninterest income	35,971			168,287			16,418			220,676
Total revenue	256,944			395,696			74,342			726,982
Credit provision *	37,021			16,534			(42,555		)	11,000
Noninterest expense	110,558			346,084			50,794			507,436
Income before income taxes	109,365			33,078			66,103			208,546
Income tax expense	35,767			11,388			19,620			66,775
Net income	$	73,598		$	21,690		$	46,483		$	141,771
Return on average allocated capital (ROCET1) **	12.8		%	5.4		%	9.8		%	9.8		%

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 3Q 2015
Average earning assets	$	9,373,312		$	8,719,078		$	6,326,258		$	24,418,648
Average loans	9,363,936			8,719,078			71,378			18,154,392
Average deposits	5,730,918			10,786,342			3,145,612			19,662,872
Average allocated capital (CET1) **	$	966,746		$	640,116		$	213,750		$	1,820,612
Average Balances for YTD 3Q 2014
Average earning assets	$	8,933,616		$	7,646,487		$	5,933,220		$	22,513,323
Average loans	8,922,631			7,646,487			85,115			16,654,233
Average deposits	5,129,046			9,872,624			2,347,059			17,348,729
Average allocated capital (CET1) **	$	766,391		$	535,528		$	585,493		$	1,887,412




Segment Income Statement Data ($ in Thousands)	Corporate and Commercial Specialty			Community, Consumer, and Business			Risk Management and Shared Services			Consolidated Total
Three Months Ended September 30, 2015
Net interest income	$	78,283		$	88,209		$	4,017		$	170,509
Noninterest income	11,305			64,911			3,700			79,916
Total revenue	89,588			153,120			7,717			250,425
Credit provision *	10,851			5,963			(8,814		)	8,000
Noninterest expense	37,293			122,393			11,750			171,436
Income before income taxes	41,444			24,764			4,781			70,989
Income tax expense (benefit)	13,955			8,667			(1,071		)	21,551
Net income	$	27,489		$	16,097		$	5,852		$	49,438
Return on average allocated capital (ROCET1) **	11.0		%	10.1		%	6.7		%	10.2		%
Three Months Ended September 30, 2014
Net interest income	$	72,474		$	82,067		$	18,089		$	172,630
Noninterest income	11,888			54,601			8,419			74,908
Total revenue	84,362			136,668			26,508			247,538
Credit provision *	11,074			6,773			(16,847		)	1,000
Noninterest expense	35,044			122,722			14,087			171,853
Income before income taxes	38,244			7,173			29,268			74,685
Income tax expense	12,343			2,467			9,668			24,478
Net income	$	25,901		$	4,706		$	19,600		$	50,207
Return on average allocated capital (ROCET1) **	13.8		%	3.2		%	13.4		%	10.4		%

Segment Balance Sheet Data ($ in Thousands)	Corporate and Commercial Specialty			Community, Consumer, and Business			Risk Management and Shared Services			Consolidated Total
Average Balances for 3Q15
Average earning assets	$	9,475,469		$	8,917,831		$	6,440,714		$	24,834,014
Average loans	9,466,761			8,917,831			68,157			18,452,749
Average deposits	6,044,306			10,969,172			3,280,121			20,293,599
Average allocated capital (CET1) **	$	988,283		$	632,878		$	216,275		$	1,837,436
Average Balances for 3Q14
Average earning assets	$	8,761,870		$	8,310,839		$	6,024,008		$	23,096,717
Average loans	8,750,207			8,310,839			79,915			17,140,961
Average deposits	5,092,314			10,337,637			2,443,427			17,873,378
Average allocated capital (CET1) **	$	744,792		$	583,096		$	543,358		$	1,871,246
* 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 common equity Tier 1 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 ROCET1 reflects return on average allocated common equity Tier 1 ("CET1"). The ROCET1 for the Risk Management and Shared Services segment and the Consolidated Total is inclusive of the annualized effect of the preferred stock dividends.