Segment Reporting

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

At June 30, 2022, the Corporation had three reportable business segments: Banking, Wealth Management and Insurance. The Corporation determines the segments based primarily upon product and service offerings, through the types of income generated and the regulatory environment. This is strategically how the Corporation operates and has positioned itself in the marketplace. Accordingly, significant operating decisions are based upon analysis of each of these segments. The parent holding company and intercompany eliminations are included in the "Other" segment.

Each segment generates revenue from a variety of products and services it provides. Examples of products and services provided for each reportable segment are indicated as follows:

● The Banking segment provides financial services to individuals, businesses, municipalities and nonprofit organizations. These services include a full range of banking services such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing.

● The Wealth Management segment offers investment advisory, financial planning, trust and brokerage services. The Wealth Management segment serves a diverse client base of private families and individuals, municipal pension plans, retirement plans, trusts and guardianships.

● The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, employee benefit solutions, personal insurance lines and human resources consulting.

The following table provides total assets by reportable business segment as of the dates indicated.

(Dollars in thousands)	At June 30, 2022		At December 31, 2021		At June 30, 2021
Banking	$	6,588,292	$	7,005,952	$	6,249,195
Wealth Management	54,531		54,076		49,822
Insurance	43,138		40,649		37,929
Other	14,852		21,744		19,359
Consolidated assets	$	6,700,813	$	7,122,421	$	6,356,305

The following tables provide reportable segment-specific information and reconciliations to consolidated financial information for the three and six months ended June 30, 2022 and 2021.

	Three Months Ended
	June 30, 2022
(Dollars in thousands)	Banking		Wealth Management		Insurance		Other		Consolidated
Interest income	$	56,706	$	2	$	—	$	9	$	56,717
Interest expense	3,816		103		—		1,327		5,246
Net interest income (expense)	52,890		(101)		—		(1,318)		51,471
Provision for credit losses	6,674		—		—		—		6,674
Noninterest income	7,480		6,862		4,828		(172)		18,998
Noninterest expense	38,179		4,391		3,882		919		47,371
Intersegment (revenue) expense*	(433)		211		222		—		—
Income (loss) before income taxes	15,950		2,159		724		(2,409)		16,424
Income tax expense (benefit)	3,088		435		147		(412)		3,258
Net income (loss)	$	12,862	$	1,724	$	577	$	(1,997)	$	13,166
Net capital expenditures	$	520	$	163	$	23	$	34	$	740

	Three Months Ended
	June 30, 2021
(Dollars in thousands)	Banking		Wealth Management		Insurance		Other		Consolidated
Interest income	$	52,432	$	1	$	—	$	8	$	52,441
Interest expense	3,483		—		—		2,201		5,684
Net interest income (expense)	48,949		1		—		(2,193)		46,757
Reversal of provision for credit losses	(59)		—		—		—		(59)
Noninterest income	9,433		6,756		3,990		51		20,230
Noninterest expense	33,103		4,386		3,150		647		41,286
Intersegment (revenue) expense*	(323)		164		159		—		—
Income (loss) before income taxes	25,661		2,207		681		(2,789)		25,760
Income tax expense (benefit)	4,905		459		139		(618)		4,885
Net income (loss)	$	20,756	$	1,748	$	542	$	(2,171)	$	20,875
Net capital expenditures	$	1,579	$	7	$	4	$	9	$	1,599

	Six Months Ended
	June 30, 2022
(Dollars in thousands)	Banking		Wealth Management		Insurance		Other		Consolidated
Interest income	$	107,895	$	3	$	—	$	17	$	107,915
Interest expense	6,996		133		—		2,655		9,784
Net interest income (expense)	100,899		(130)		—		(2,638)		98,131
Provision for credit losses	3,224		—		—		—		3,224
Noninterest income	14,850		14,167		10,592		(141)		39,468
Noninterest expense	74,667		9,100		7,747		1,269		92,783
Intersegment (revenue) expense*	(867)		422		445		—		—
Income (loss) before income taxes	38,725		4,515		2,400		(4,048)		41,592
Income tax expense (benefit)	7,631		927		505		(954)		8,109
Net income (loss)	$	31,094	$	3,588	$	1,895	$	(3,094)	$	33,483
Net capital expenditures	$	(5,072)	$	226	$	38	$	54	$	(4,754)

	Six Months Ended
	June 30, 2021
(Dollars in thousands)	Banking		Wealth Management		Insurance		Other		Consolidated
Interest income	$	103,881	$	1	$	—	$	16	$	103,898
Interest expense	7,233		—		—		4,494		11,727
Net interest income (expense)	96,648		1		—		(4,478)		92,171
Reversal of provision for credit losses	(11,342)		—		—		—		(11,342)
Noninterest income	20,663		13,529		9,095		193		43,480
Noninterest expense	63,599		8,577		6,454		2,196		80,826
Intersegment (revenue) expense*	(646)		328		318		—		—
Income (loss) before income taxes	65,700		4,625		2,323		(6,481)		66,167
Income tax expense (benefit)	13,176		957		490		(1,934)		12,689
Net income (loss)	$	52,524	$	3,668	$	1,833	$	(4,547)	$	53,478
Net capital expenditures	$	2,690	$	12	$	13	$	71	$	2,786

*Includes an allocation of general and administrative expenses from both the parent holding company and the Bank. These expenses are generally allocated based upon number of employees and square footage utilized.