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Business Segments
 6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 18 – BUSINESS SEGMENTS

 

The Company segregates its businesses into the following major reportable segments of business: Banking, Wealth Management, and Treasury. Management established the reportable segments based on the internal reporting used to evaluate performance and to assess where to allocate resources. Other factors such as the Company's organization, nature of its products, distribution channels and economic characteristics of the products were also considered in the determination of the reportable segments. The Company measures the performance of these reportable segments based on pre-established goals of different financial parameters such as net income, net interest income, loan production, and fees generated. The Company's methodology for allocating non-interest expenses among segments is based on several factors such as revenue, employee headcount, occupied space, dedicated services or time, among others. These factors are reviewed on a periodical basis and may change if the conditions warrant.

 

Banking includes the Bank's branches and traditional banking products such as deposits and commercial, consumer and mortgage loans. Mortgage banking activities are carried out by the Bank's mortgage banking division, whose principal activity is to originate mortgage loans for the Company's own portfolio. As part of its mortgage banking activities, the Company may sell loans directly into the secondary market or securitize conforming loans into mortgage-backed securities.

 

Wealth Management is comprised of the Bank's trust division, Oriental Financial Services, Oriental Insurance, and CPC. The core operations of this segment are financial planning, money management and investment banking, brokerage services, insurance sales activity, corporate and individual trust and retirement services, as well as pension plan administration services.

 

The Treasury segment encompasses all of the Company's asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. Intersegment sales and transfers, if any, are accounted for as if the sales or transfers were to third parties, that is, at current market prices.

Following are the results of operations and the selected financial information by operating segment for the quarters and six-month periods ended June 30, 2014 and 2013:

 Quarter Ended June 30, 2014
    Wealth    Total Major    Consolidated
 Banking  Management Treasury  Segments  Eliminations  Total
 (In thousands)
Interest income$ 112,971 $ 46 $ 12,883 $ 125,900 $ - $ 125,900
Interest expense  (10,828)   -   (8,994)   (19,822)   -   (19,822)
Net interest income  102,143   46   3,889   106,078   -   106,078
Provision for non-covered loan and lease losses  (13,220)   -   -   (13,220)   -   (13,220)
Provision for covered loan and lease losses  (1,595)   -   -   (1,595)   -   (1,595)
Non-interest income (loss)  (6,507)   7,502   (488)   507   -   507
Non-interest expenses  (49,651)   (6,367)   (3,830)   (59,848)   -   (59,848)
Intersegment revenue  435   -   -   435   (435)   -
Intersegment expenses  -   (327)   (108)   (435)   435   -
Income before income taxes$ 31,605 $ 854 $ (537) $ 31,922 $ - $ 31,922
Total assets $ 6,508,432 $ 25,345 $ 2,089,516 $ 8,623,293 $ (913,148) $ 7,710,145
                  
                  
                  
 Quarter Ended June 30, 2013
    Wealth    Total Major    Consolidated
 Banking  Management Treasury  Segments  Eliminations  Total
 (In thousands)
Interest income$ 115,541 $ 96 $ 10,665 $ 126,302 $ - $ 126,302
Interest expense  (9,840)   -   (10,167)   (20,007)   -   (20,007)
Net interest income  105,701   96   498   106,295   -   106,295
Provision for non-covered loan and lease losses  (37,527)   -   -   (37,527)   -   (37,527)
Provision for covered loan and lease losses  (1,211)   -   -   (1,211)   -   (1,211)
Non-interest income (loss)  (5,258)   8,100   3,893   6,735   -   6,735
Non-interest expenses  (57,783)   (6,650)   (4,254)   (68,687)   -   (68,687)
Intersegment revenue  579   -   -   579   (579)   -
Intersegment expenses  -   (485)   (94)   (579)   579   -
Income before income taxes$ 4,501 $ 1,061 $ 43 $ 5,605 $ - $ 5,605
Total assets $ 6,746,902 $ 39,960 $ 2,527,039 $ 9,313,901 $ (877,967) $ 8,435,934

 Six-Month Period Ended June 30, 2014
    Wealth    Total Major    Consolidated
 Banking  Management Treasury  Segments  Eliminations  Total
 (In thousands)
Interest income$ 221,602 $ 86 $ 27,286 $ 248,974 $ - $ 248,974
Interest expense  (18,344)   -   (21,154)   (39,498)   -   (39,498)
Net interest income  203,258   86   6,132   209,476   -   209,476
Provision for non-covered loan and lease losses  (23,282)   -   -   (23,282)   -   (23,282)
Provision for covered loan and lease losses, net  (3,224)   -   -   (3,224)   -   (3,224)
Non-interest income(loss)  (11,603)   14,024   3,315   5,736   -   5,736
Non-interest expenses  (103,198)   (11,146)   (6,908)   (121,252)   -   (121,252)
Intersegment revenue  979   -   -   979   (979)   -
Intersegment expenses  -   (759)   (220)   (979)   979   -
Income before income taxes$ 62,930 $ 2,205 $ 2,319 $ 67,454 $ - $ 67,454
                  
                  
                  
 Six-Month Period Ended June 30, 2013
    Wealth    Total Major    Consolidated
 Banking  Management Treasury  Segments  Eliminations  Total
 (In thousands)
Interest income$ 217,609 $ 182 $ 22,683 $ 240,474 $ - $ 240,474
Interest expense  (20,497)   -   (20,068)   (40,565)   -   (40,565)
Net interest income  197,112   182   2,615   199,909   -   199,909
Provision for non-covered loan and lease losses  (45,443)   -   -   (45,443)   -   (45,443)
Provision for covered loan and lease losses, net  (1,883)   -   -   (1,883)   -   (1,883)
Non-interest income(loss)  (3,193)   15,801   4,030   16,638   -   16,638
Non-interest expenses  (115,501)   (12,777)   (7,020)   (135,298)   -   (135,298)
Intersegment revenue  (624)   -   -   (624)   624   -
Intersegment expenses  -   (786)   1,410   624   (624)   -
Income before income taxes$ 30,468 $ 2,420 $ 1,035 $ 33,923 $ - $ 33,923