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Segment Reporting
 9 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Segment Reporting

NOTE 20 – 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 nine-month periods ended September 30, 2014 and 2013:

 Quarter Ended September 30, 2014
    Wealth    Total Major    Consolidated
 Banking  Management Treasury  Segments  Eliminations  Total
 (In thousands)
Interest income$ 108,548 $ 44 $ 11,709 $ 120,301 $ - $ 120,301
Interest expense  (7,892)   -   (10,538)   (18,430)   -   (18,430)
Net interest income  100,656   44   1,171   101,871   -   101,871
Provision for non-covered loan and lease losses  (16,142)   -   -   (16,142)   -   (16,142)
Provision for covered loan and lease losses  (1,115)   -   -   (1,115)   -   (1,115)
Non-interest income (loss)  (3,242)   6,208   (475)   2,491   -   2,491
Non-interest expenses  (53,669)   (4,483)   (1,423)   (59,575)   -   (59,575)
Intersegment revenue  431   -   290   721   (721)   -
Intersegment expenses  (290)   (330)   (101)   (721)   721   -
Income before income taxes$ 26,629 $ 1,439 $ (538) $ 27,530 $ - $ 27,530
Total assets $ 6,494,141 $ 26,800 $ 2,098,341 $ 8,619,282   (945,943) $ 7,673,339
                  
                  
                  
 Quarter Ended September 30, 2013
    Wealth    Total Major    Consolidated
 Banking  Management Treasury  Segments  Eliminations  Total
 (In thousands)
Interest income$ 109,311 $ 95 $ 11,695 $ 121,101 $ - $ 121,101
Interest expense  (10,994)   -   (11,016)   (22,010)   -   (22,010)
Net interest income  98,317   95   679   99,091   -   99,091
Provision for non-covered loan and lease losses  (9,900)   -   -   (9,900)   -   (9,900)
Provision for covered loan and lease losses  (3,074)   -   -   (3,074)   -   (3,074)
Non-interest income (loss)  (3,960)   7,114   169   3,323   -   3,323
Non-interest expenses  (52,615)   (6,168)   (4,451)   (63,234)   -   (63,234)
Intersegment revenue  562   -   -   562   (562)   -
Intersegment expenses  -   (461)   (101)   (562)   562   -
Income before income taxes$ 29,330 $ 580 $ (3,704) $ 26,206 $ - $ 26,206
Total assets $ 6,542,840 $ 40,994 $ 2,691,621 $ 9,275,455 $ (895,230) $ 8,380,225

 Nine-Month Period Ended September 30, 2014
    Wealth    Total Major    Consolidated
 Banking  Management Treasury  Segments  Eliminations  Total
 (In thousands)
Interest income$ 330,148 $ 132 $ 38,995 $ 369,275 $ - $ 369,275
Interest expense  (26,235)   -   (31,693)   (57,928)   -   (57,928)
Net interest income  303,913   132   7,302   311,347   -   311,347
Provision for non-covered loan and lease losses  (39,424)   -   -   (39,424)   -   (39,424)
Provision for covered loan and lease losses, net  (4,339)   -   -   (4,339)   -   (4,339)
Non-interest income(loss)  (14,845)   20,232   2,840   8,227   -   8,227
Non-interest expenses  (156,867)   (15,629)   (8,331)   (180,827)   -   (180,827)
Intersegment revenue  1,410   -   290   1,700   (1,700)   -
Intersegment expenses  (290)   (1,089)$  (321)   (1,700)   1,700   -
Income before income taxes$ 89,558 $ 3,646   1,780 $ 94,984 $ - $ 94,984
                  
                  
                  
 Nine-Month Period Ended September 30, 2013
    Wealth    Total Major    Consolidated
 Banking  Management Treasury  Segments  Eliminations  Total
 (In thousands)
Interest income$ 325,432 $ 277 $ 35,865 $ 361,574 $ - $ 361,574
Interest expense  (31,490)   -   (31,084)   (62,574)   -   (62,574)
Net interest income  293,942   277   4,781   299,000   -   299,000
Provision for non-covered loan and lease losses  (55,343)   -   -   (55,343)   -   (55,343)
Provision for covered loan and lease losses, net  (4,957)   -   -   (4,957)   -   (4,957)
Non-interest income(loss)  (7,151)   22,915   4,199   19,963   -   19,963
Non-interest expenses  (168,119)   (18,945)   (11,470)   (198,534)   -   (198,534)
Intersegment revenue  1,524   -   -   1,524   (1,524)   -
Intersegment expenses  -   (1,247)   (277)   (1,524)   1,524   -
Income (loss) before income taxes$ 59,896 $ 3,000 $ (2,767) $ 60,129 $ - $ 60,129