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Business Segment
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Reporting

NOTE 26 – 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 years ended December 31, 2015, 2014 and 2013:

Year Ended December 31, 2015
Wealth Total Major Consolidated
Banking ManagementTreasury Segments Eliminations Total
(In thousands)
Interest income$367,620$95$38,853$406,568$-$406,568
Interest expense(28,425)-(40,771)(69,196)-(69,196)
Net interest income339,19595(1,918)337,372-337,372
Provision for loan and lease losses(161,501)--(161,501)-(161,501)
Non-interest income23,90028,28828452,472-52,472
Non-interest expenses(219,415)(22,564)(6,422)(248,401)-(248,401)
Intersegment revenue1,427-9482,375(2,375)-
Intersegment expenses(948)(1,027)(400)(2,375)2,375-
Income (loss) before income taxes$(17,342)$4,792(7,508)$(20,058)$-$(20,058)
Total assets 5,867,874$22,349$2,126,921$8,017,144$(917,995)$7,099,149
Year Ended December 31, 2014
Wealth Total Major Consolidated
Banking ManagementTreasury Segments Eliminations Total
(In thousands)
Interest income$435,580$174$49,503$485,257$-$485,257
Interest expense(34,721)-(42,061)(76,782)-(76,782)
Net interest income400,8591747,442408,475-408,475
Provision for loan and lease losses(60,640)--(60,640)-(60,640)
Non-interest (loss) income(13,389)28,5252,18717,323-17,323
Non-interest expenses(213,935)(21,748)(7,042)(242,725)-(242,725)
Intersegment revenue1,410-3271,737(1,737)-
Intersegment expenses(327)(1,089)(321)(1,737)1,737-
Income before income taxes$113,978$5,862$2,593$122,433$-$122,433
Total assets$6,454,015$21,644$1,940,504$8,416,163$(967,054)$(967,054)$7,449,109
Year Ended December 2013
Wealth Total Major Consolidated
Banking ManagementTreasury Segments Eliminations Total
(In thousands)
Interest income$445,363$354$47,915$493,632$-$493,632
Interest expense(42,044)-(41,916)(83,960)-(83,960)
Net interest income403,3193545,999409,672-409,672
Provision for loan and lease losses(72,894)--(72,894)-(72,894)
Non-interest (loss) income(17,438)30,6143,91917,095-17,095
Non-interest expenses(222,408)(26,603)(15,125)(264,136)-(264,136)
Intersegment revenue618-1,1951,813(1,813)-
Intersegment expenses-(1,813)(1,813)1,813-
Income (loss) before income taxes$91,197$2,552$(4,012)$89,737$-$89,737
Total assets$5,820,726$23,280$3,084,409$8,928,415$(770,400)$(967,054)$8,158,015