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 and the related products and services provided, and 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, cash 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 lending, affordable housing loans and letters of credit, asset-based lending, and equipment financings. Commercial deposit products and other financial services include cash 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, 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 expenses 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, which are based on the market interest rates of terms tied to those of the underlying loans or deposits and adjusted for other factors. The internal FTP rates increase as the market interest rates increase, and vice versa. Therefore, the net spread between the total internal FTP charges and credits is recorded as part of net interest income in the Other segment. 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 first quarter of 2019, the Company enhanced its segment cost allocation methodology related to stock compensation expense and bonus accrual. Effective first quarter of 2019, stock compensation expense is allocated to all three segments, whereas it was previously recorded in the Other segment as a corporate expense. In addition, bonus expense is now allocated at a more granular level at the segment level at the time of accrual. For comparability, segment information for the three and nine months ended September 30, 2018 have been restated to conform to the current presentation. During the third quarter of 2019, the Company enhanced its FTP methodology related to deposits by setting a minimum floor rate for the FTP credits paid by the Other segment to the Consumer and Business Banking, as well as the Commercial Banking segments in consideration of the flattened and inverted yield curve. For consistency in the application of this change, the Company adjusted the segment reporting results for the three months ended March 31 and June 30, 2019, which increased segment net income for the Consumer and Business Banking, as well as the Commercial Banking segments, and, correspondingly, reduced net income for Other segment. This change in FTP methodology related to deposits had no impact on 2018 segment results. The following tables present the operating results and other key financial measures for the individual operating segments as of and for the three and nine months ended September 30, 2019 and 2018 : ($ in thousands) Consumer and Business Banking Commercial Banking Other Total Three Months Ended September 30, 2019 Net interest income before provision for credit losses $ 170,183 $ 166,106 $ 33,518 $ 369,807 Provision for credit losses 4,251 34,033  38,284 Noninterest income 15,103 33,731 2,640 51,474 Noninterest expense 86,489 62,246 27,895 176,630 Segment income before income taxes 94,546 103,558 8,263 206,367 Segment net income $ 67,592 $ 74,111 $ 29,713 $ 171,416 As of September 30, 2019 Segment assets $ 11,277,171 $ 24,885,849 $ 7,111,639 $ 43,274,659 ($ in thousands) Consumer and Business Banking Commercial Banking Other Total Three Months Ended September 30, 2018 Net interest income before provision for credit losses $ 182,272 $ 149,770 $ 16,678 $ 348,720 Provision for credit losses 705 9,837  10,542 Noninterest Income 13,137 27,861 5,504 46,502 Noninterest expense 87,640 57,376 34,799 179,815 Segment income (loss) before income taxes 107,064 110,418 (12,617 ) 204,865 Segment net income $ 76,711 $ 79,344 $ 15,247 $ 171,302 As of September 30, 2018 Segment assets $ 10,194,291 $ 22,930,768 $ 5,917,654 $ 39,042,713 ($ in thousands) Consumer and Business Banking Commercial Banking Other Total Nine Months Ended September 30, 2019 Net interest income before provision for credit losses $ 536,153 $ 477,755 $ 85,686 $ 1,099,594 Provision for credit losses 8,880 71,228  80,108 Noninterest Income 43,378 91,931 11,055 146,364 Noninterest expense 258,051 200,093 83,071 541,215 Segment income before income taxes 312,600 298,365 13,670 624,635 Segment net income $ 223,478 $ 213,331 $ 49,011 $ 485,820 As of September 30, 2019 Segment assets $ 11,277,171 $ 24,885,849 $ 7,111,639 $ 43,274,659 ($ in thousands) Consumer and Business Banking Commercial Banking Other Total Nine Months Ended September 30, 2018 Net interest income before provision for credit losses $ 538,568 $ 448,128 $ 30,396 $ 1,017,092 Provision for credit losses 7,212 39,084  46,296 Noninterest income 72,170 86,043 11,001 169,214 Noninterest expense 259,416 179,251 87,702 526,369 Segment income (loss) before income taxes 344,110 315,836 (46,305 ) 613,641 Segment net income $ 246,555 $ 226,798 $ 57,330 $ 530,683 As of September 30, 2018 Segment assets $ 10,194,291 $ 22,930,768 $ 5,917,654 $ 39,042,713