Business Segments The Company organizes its operations into three reportable operating segments: (1) Consumer and Business Banking; (2) Commercial Banking; and (3) Other. These segments are defined by the type of customers served, and the related products and services provided. The segments reflect how financial information is currently evaluated by management. Operating segment results are based on the Companys internal management reporting process, which reflects assignments and allocations of certain balance sheet and income statement items. The information presented is not indicative of how the segments would perform if they operated as independent entities due to the interrelationships among the segments. The Consumer and Business Banking segment primarily provides financial products and services to consumer and commercial customers through the Companys domestic branch network. This segment offers consumer and commercial deposits, mortgage and home equity loans, and other products and services. It also originates commercial loans for small and medium-sized enterprises through the Companys branch network. Other products and services provided by this segment include wealth management, treasury management and foreign exchange services. The Commercial Banking segment primarily generates commercial loans and deposits. Commercial loan products include commercial business loans and lines of credit, trade finance loans and letters of credit, CRE loans, construction and land loans, affordable housing loans and letters of credit, asset-based lending, and equipment financing. Commercial deposit products and other financial services include treasury management, foreign exchange services, and interest rate and commodity risk hedging. The remaining centralized functions, including the corporate treasury activities of the Company and eliminations of inter-segment amounts, have been aggregated and included in the Other segment, which provides broad administrative support to the two core segments, namely the Consumer and Business Banking and the Commercial Banking segments. The Company utilizes an internal reporting process to measure the performance of the three operating segments within the Company. The internal reporting process derives operating segment results by utilizing allocation methodologies for revenue and expenses. Net interest income of each segment represents the difference between actual interest earned on assets and interest incurred on liabilities of the segment, adjusted for funding charges or credits through the Companys internal funds transfer pricing (FTP) process. Noninterest income and noninterest expense directly attributable to a business segment are assigned to that segment. Indirect costs, including technology-related costs and corporate overhead, are allocated based on a segments estimated usage using factors including but not limited to, full-time equivalent employees, net interest income, and loan and deposit volume. Charge-offs are allocated to the segment directly associated with the loans charged off, and the remaining provision for credit losses is allocated to each segment based on loan volume. The Companys internal reporting process utilizes a full-allocation methodology. Under this methodology, corporate and indirect expenses incurred by the Other segment are allocated to the Consumer and Business Banking and the Commercial Banking segments, except certain corporate treasury-related expenses and insignificant unallocated expenses. The corporate treasury function within the Other segment is responsible for liquidity and interest rate management of the Company. The Companys internal FTP process is also managed by the corporate treasury function within the Other segment. The process is formulated with the goal of encouraging loan and deposit growth that is consistent with the Companys overall profitability objectives, as well as to provide a reasonable and consistent basis for the measurement of its business segments net interest margins and profitability. The FTP process charges a cost to fund loans (FTP charges for loans) and allocates credits for funds provided from deposits (FTP credits for deposits) using internal FTP rates. FTP charges for loans are determined based on a matched cost of funds, which is tied to the pricing and term characteristics of the loans. FTP credits for deposits are based on matched funding credit rates, which are tied to the implied or stated maturity of the deposits. FTP credits for deposits reflect the long-term value generated by the deposits. The net spread between the total internal FTP charges and credits is recorded as part of net interest income in the Other segment. The FTP process transfers the corporate interest rate risk exposure to the treasury function within the Other segment, where such exposures are centrally managed. The Companys internal FTP assumptions and methodologies are reviewed at least annually to ensure that the process is reflective of current market conditions. During the third quarter of 2019, the Company enhanced its FTP methodology related to deposits by setting a minimum floor rate using the short-term FHLB rate as a reference rate for the FTP credits paid for deposits in event of the flattened and inverted yield curve. This methodology has been retrospectively applied to segment financial results for the three and six months ended June 30, 2019, and the process is effectively reflecting the current market conditions as of June 30, 2020. The following tables present the operating results and other key financial measures for the individual operating segments as of and for the three and six months ended June 30, 2020 and 2019: ($ in thousands) Consumer and Business Banking Commercial Banking Other Total Three Months Ended June 30, 2020 Net interest income before provision for credit losses $ 124,926 $ 183,796 $ 35,053 $ 343,775 Provision for credit losses 5,590 96,853  102,443 Noninterest income 13,943 33,887 10,807 58,637 Noninterest expense 80,164 64,900 42,632 187,696 Segment income before income taxes 53,115 55,930 3,228 112,273 Segment net income $ 38,058 $ 40,178 $ 21,116 $ 99,352 As of June 30, 2020 Segment assets $ 12,666,938 $ 26,984,013 $ 9,756,642 $ 49,407,593 ($ in thousands) Consumer and Business Banking Commercial Banking Other Total Three Months Ended June 30, 2019 Net interest income before provision for credit losses $ 180,911 $ 158,941 $ 27,474 $ 367,326 Provision for credit losses 1,616 17,629  19,245 Noninterest income 14,503 33,656 4,600 52,759 Noninterest expense 83,656 67,303 26,704 177,663 Segment income before income taxes 110,142 107,665 5,370 223,177 Segment net income (loss) $ 78,741 $ 76,885 $ (5,246) $ 150,380 As of June 30, 2019 Segment assets $ 11,013,898 $ 25,001,894 $ 6,876,566 $ 42,892,358 ($ in thousands) Consumer and Business Banking Commercial Banking Other Total Six Months Ended June 30, 2020 Net interest income before provision for credit losses $ 277,517 $ 367,297 $ 61,668 $ 706,482 Provision for credit losses 13,378 162,935  176,313 Noninterest income 30,345 66,343 15,998 112,686 Noninterest expense 167,128 135,026 64,418 366,572 Segment income before income taxes 127,356 135,679 13,248 276,283 Segment net income $ 91,253 $ 97,309 $ 55,614 $ 244,176 As of June 30, 2020 Segment assets $ 12,666,938 $ 26,984,013 $ 9,756,642 $ 49,407,593 ($ in thousands) Consumer and Business Banking Commercial Banking Other Total Six Months Ended June 30, 2019 Net interest income before provision for credit losses $ 365,970 $ 311,649 $ 52,168 $ 729,787 Provision for credit losses 4,629 37,195  41,824 Noninterest income 28,275 58,200 8,415 94,890 Noninterest expense 171,562 137,847 55,176 364,585 Segment income before income taxes 218,054 194,807 5,407 418,268 Segment net income $ 155,887 $ 139,219 $ 19,298 $ 314,404 As of June 30, 2019 Segment assets $ 11,013,898 $ 25,001,894 $ 6,876,566 $ 42,892,358