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Business Segment
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Segment Reporting

NOTE 21 – 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, 2016 and 2015:

Quarter Ended September 30, 2016
Wealth Total Major Consolidated
Banking ManagementTreasury Segments Eliminations Total
(In thousands)
Interest income$82,564$15$8,005$90,584$-$90,584
Interest expense(6,733)-(6,924)(13,657)-(13,657)
Net interest income75,831151,08176,927-76,927
Provision for loan and lease losses(23,469)--(23,469)-(23,469)
Non-interest income8,9186,3794,91820,215-20,215
Non-interest expenses(50,095)(3,757)(1,074)(54,926)-(54,926)
Intersegment revenue375-86461(461)-
Intersegment expenses(86)(272)(103)(461)461-
Income before income taxes$11,474$2,365$4,908$18,747$-$18,747
Total assets$5,715,958$19,433$1,801,752$7,537,143$(945,031)$6,592,112
Quarter Ended September 30, 2015
Wealth Total Major Consolidated
Banking ManagementTreasury Segments 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 (loss) income30,0986,513(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 (loss) 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

Nine-Month Period Ended September 30, 2016
Wealth Total Major Consolidated
Banking ManagementTreasury Segments Eliminations Total
(In thousands)
Interest income$243,389$49$26,360$269,798$-$269,798
Interest expense(20,840)-(23,744)(44,584)-(44,584)
Net interest income222,549492,616225,214-225,214
Provision for loan and lease losses(51,703)--(51,703)-(51,703)
Non-interest income24,92719,3094,63748,873-48,873
Non-interest expenses(147,881)(11,610)(4,117)(163,608)-(163,608)
Intersegment revenue1,162-2351,397(1,397)-
Intersegment expenses(235)(849)(313)(1,397)1,397-
Income before income taxes$48,819$6,899$3,058$58,776$-$58,776
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 income16,13620,4161,65038,202-38,202
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 (loss) before income taxes$2,042$3,131$(4,391)$782$-$782