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Business Segment
 9 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
Segment Reporting

NOTE 22 – 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 OPC. 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 retirement 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, 2015 and 2014:

Quarter Ended September 30, 2015
WealthTotal Major Consolidated
Banking ManagementTreasurySegments Eliminations Total
(In thousands)
Interest income$97,264$25$9,958$107,247$-$107,247
Interest expense(7,036)-(10,388)(17,424)-(17,424)
Net interest income90,22825(430)89,823-89,823
Provision for loan and lease losses(51,579)--(51,579)-(51,579)
Non-interest income (loss)30,0986,513(634)35,977-35,977
Non-interest expenses(63,106)(5,063)(921)(69,090)-(69,090)
Intersegment revenue351-69420(420)-
Intersegment expenses(69)(252)(99)(420)420-
Income before income taxes$5,923$1,223$(2,015)$5,131$-$5,131
Total assets $5,990,125$20,594$2,117,569$8,128,288(924,466)$7,203,822
Quarter Ended September 30, 2014
WealthTotal Major Consolidated
Banking ManagementTreasurySegments 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 income100,656441,171101,871-101,871
Provision for loan and lease losses(17,257)--(17,257)-(17,257)
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 revenue431-290721(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

Nine-Month Period Ended September 30, 2015
Wealth Total Major Consolidated
Banking ManagementTreasury Segments Eliminations Total
(In thousands)
Interest income$285,251$71$28,339$313,661$-$313,661
Interest expense(21,600)-(30,311)(51,911)-(51,911)
Net interest income263,65171(1,972)261,750-261,750
Provision for loan and lease losses(109,311)--(109,311)-(109,311)
Non-interest income(loss)16,13620,4161,65038,202-38,202
Non-interest expenses(169,264)(16,586)(4,009)(189,859)-(189,859)
Intersegment revenue1,058-2281,286(1,286)-
Intersegment expenses(228)(770)(288)(1,286)1,286-
Income before income taxes$2,042$3,131$(4,391)$782$-$782
Nine-Month Period Ended September 30, 2014
Wealth Total Major Consolidated
Banking ManagementTreasury 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 income303,9131327,302311,347-311,347
Provision for loan and lease losses(43,763)--(43,763)-(43,763)
Non-interest income(loss)(14,845)20,2322,8408,227-8,227
Non-interest expenses(156,867)(15,629)(8,331)(180,827)-(180,827)
Intersegment revenue1,410-2901,700(1,700)-
Intersegment expenses(290)(1,089)(321)(1,700)1,700-
Income (loss) before income taxes$89,558$3,646$1,780$94,984$-$94,984