Segment Reporting

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting

NOTE 20  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 or Tier 1 common equity of the Corporation as a whole.

The financial information of the Corporation's segments has been compiled utilizing the accounting policies described in Note 1, 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 Note 1 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 2014, certain organizational and methodology changes were made and, accordingly, 2013 and 2012 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; 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
2014
Net interest income		$	284,177		$	319,743		$	77,047		$	680,967
Noninterest income			46,953			223,639			19,727			290,319
	Total revenue		331,130			543,382			96,774			971,286
Credit provision *			44,819			25,972			(54,791)			16,000
Noninterest expense			141,302			470,358			67,581			679,241
Income before income taxes			145,009			47,052			83,984			276,045
Income tax expense			48,133			16,468			20,935			85,536
Net income		$	96,876		$	30,584		$	63,049		$	190,509
Return on average allocated capital (ROT1CE) **			13.2	%		5.3	%		10.4	%		9.9	%
2013
Net interest income		$	299,405		$	335,988		$	10,150		$	645,543
Noninterest income			43,944			252,140			17,015			313,099
	Total revenue		343,349			588,128			27,165			958,642
Credit provision *			51,217			24,202			(65,319)			10,100
Noninterest expense			140,508			475,261			64,880			680,649
Income before income taxes			151,624			88,665			27,604			267,893
Income tax expense (benefit)			53,068			31,033			(4,900)			79,201
Net income		$	98,556		$	57,632		$	32,504		$	188,692
Return on average allocated capital (ROT1CE) **			13.4	%		9.9	%		4.8	%		9.8	%
2012
Net interest income		$	271,902		$	320,499		$	33,591		$	625,992
Noninterest income			37,853			256,292			19,145			313,290
	Total revenue		309,755			576,791			52,736			939,282
Credit provision *			44,653			27,130			(61,683)			10,100
Noninterest expense			139,009			490,129			45,585			674,723
Income before income taxes			126,093			59,532			68,834			254,459
Income tax expense			44,133			20,836			10,517			75,486
Net income		$	81,960		$	38,696		$	58,317		$	178,973
Return on average allocated capital (ROT1CE) **			11.9	%		6.4	%		9.8	%		9.5	%
Segment Balance Sheet Data
	($ in Thousands)		Corporate and Commercial Specialty		Community, Consumer, and Business			Risk Management and Shared Services			Consolidated Total
2014
Average earning assets		$	8,600,750		$	8,167,003		$	5,992,375		$	22,760,128
Average loans			8,588,847			8,167,003			83,144			16,838,994
Average deposits			4,861,001			10,348,689			2,437,394			17,647,084
Average allocated capital (T1CE) **		$	734,130		$	578,101		$	558,378		$	1,870,609
2013
Average earning assets		$	7,962,250		$	7,706,896		$	5,310,982		$	20,980,128
Average loans			7,952,436			7,706,896			3,813			15,663,145
Average deposits			5,056,710			10,098,159			2,283,326			17,438,195
Average allocated capital (T1CE) **		$	733,862		$	580,019		$	564,490		$	1,878,371
2012
Average earning assets		$	7,066,657		$	7,656,611		$	4,890,509		$	19,613,777
Average loans			7,060,181			7,656,611			24,993			14,741,785
Average deposits			4,196,607			9,857,938			1,527,824			15,582,369
Average allocated capital (T1CE) **		$	688,361		$	605,707		$	544,356		$	1,838,424
* 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.