XML 49 R26.htm IDEA: XBRL DOCUMENT v3.25.0.1
Business Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segments Business Segments
The Company organizes its operations into three reportable operating segments: (1) Consumer and Business Banking; (2) Commercial Banking; and (3) Treasury and Other. These segments are defined by the type of customers served, and the related products and services provided. The CODM is the Chairman and Chief Executive Officer (“CEO”) of the Company. The CODM regularly reviews the Company’s operating results to allocate resources and assess performance. Operating segment results are also based on the Company’s internal management reporting process, which reflects the allocations of certain balance sheet and income statement line items. The CODM uses certain performance measures such as segment net income and considers variances of actual results from forecast results on a quarterly basis when making decisions on resource allocations between segments. The segment information presented is not indicative of how the segments would perform if they operated as independent entities.

The Consumer and Business Banking segment primarily provides financial products and services to consumer and commercial customers through the Company’s domestic branch network and digital banking platforms. This segment offers consumer and commercial deposits, mortgage and home equity loans, and other products and services. It also originates commercial loans for small- and medium-sized enterprises through the Company’s branch network. Other products and services provided by this segment include wealth management, private banking, treasury management, interest rate risk hedging and foreign exchange services.
The Commercial Banking segment primarily generates domestic commercial loan and deposit products. Commercial loan products include CRE lending, construction finance, commercial business lending, working capital lines of credit, trade finance, letters of credit, affordable housing lending, asset-based lending, asset-backed finance, project finance and equipment financing. Commercial deposit products and other financial services include treasury management, foreign exchange services and interest rate and commodity risk hedging.

The remaining centralized functions, including the corporate treasury activities of the Company, eliminations of inter-segment amounts, and centrally managed departments, have been aggregated and included in the Treasury and Other segment.

The Company utilizes an internal reporting process to measure the performance of the three operating segments within the Company. The Company’s internal reporting process consists of certain allocation methodologies for revenues and expenses, and the internal funds transfer pricing (“FTP”) process. The FTP process is formulated with the goal of encouraging loan and deposit growth that is consistent with the Company’s overall profitability objectives, as well as providing a reasonable and consistent basis for the measurement of its business segments’ net interest margins and profitability. The FTP process charges a cost to fund loans (“FTP charges for loans”) and allocates credits for funds provided from deposits (“FTP credits for deposits”) using internal FTP rates. FTP charges for loans are determined based on a matched cost of funds, which is tied to the pricing and term characteristics of the loans. FTP credits for deposits are based on matched funding credit rates, which are tied to the implied or stated maturity of the deposits. FTP credits for deposits reflect the long-term value generated by the deposits. The net spread between the total internal FTP charges and credits is recorded as part of net interest income in the Treasury and Other segment. The corporate treasury function within the Treasury and Other segment is responsible for the Company’s liquidity and interest rate management and manages the corporate interest rate risk exposure. The Company’s internal FTP assumptions and methodologies are reviewed at least annually to ensure that the process is reflective of current market conditions.

Each segment’s net interest income represents the difference between actual interest earned on assets and interest incurred on liabilities of the segment, adjusted for funding charges or credits through the Company’s FTP process. Noninterest income and noninterest expense directly attributable to a business segment are assigned to that segment. Loan charge-offs and provision for credit losses are recorded to the segments, where the loans are recorded. Significant corporate overhead expenses incurred by centralized support areas in the Treasury and Other segment are allocated to the Consumer and Business Banking and Commercial Banking segments based on the segment’s estimated usage factors including, but not limited to, full-time equivalent employees, net interest income, and loan and deposit volume. Amortization of tax credit and CRA investments and certain types of administrative expenses are generally not allocated to segments.

During the third quarter of 2024, the Company refined its segment allocation methodology and reclassified certain deposits and their related income or expenses from the “Consumer and Business Banking” segment to the “Commercial Banking” or “Treasury and Other” segments, and certain loan balances and their related income or expenses from the “Commercial Banking” segment to the “Treasury and Other” segment. Balances for the prior years have been reclassified for comparability.
The following tables present the operating results and other key financial measures for the individual operating segments as of and for the years ended December 31, 2024, 2023 and 2022:
($ in thousands)Consumer and Business BankingCommercial BankingTreasury and OtherTotal
Year Ended December 31, 2024
Net interest income before provision for credit losses$1,152,033 $1,125,931 $752 $2,278,716 
Noninterest income108,773 197,780 28,665 335,218 
Total revenue before provision for credit losses1,260,806 1,323,711 29,417 2,613,934 
Provision for (reversal of) credit losses
8,691 166,953 (1,644)174,000 
Compensation and employee benefits217,612 234,240 98,882 550,734 
Other noninterest expense (1)
234,494 161,969 10,876 407,339 
Total noninterest expense452,106 396,209 109,758 958,073 
Segment income (loss) before income taxes800,009 760,549 (78,697)1,481,861 
Segment net income$563,218 $535,652 $66,716 $1,165,586 
Average balances:
Loans$18,966,662 $32,996,221 $405,897 $52,368,780 
Deposits$30,815,912 $25,820,956 $3,036,171 $59,673,039 
As of December 31, 2024
Segment assets$20,084,814 $35,646,939 $20,244,722 $75,976,475 
($ in thousands)Consumer and Business BankingCommercial BankingTreasury and OtherTotal
Year Ended December 31, 2023
Net interest income (loss) before provision for credit losses$1,225,954 $1,116,013 $(29,713)$2,312,254 
Noninterest income103,890 168,502 22,872 295,264 
Total revenue (loss) before provision for credit losses1,329,844 1,284,515 (6,841)2,607,518 
Provision for credit losses21,454 100,391 3,155 125,000 
Compensation and employee benefits203,387 217,663 87,488 508,538 
Other noninterest expense (1)
262,086 158,949 93,175 514,210 
Total noninterest expense465,473 376,612 180,663 1,022,748 
Segment income (loss) before income taxes842,917 807,512 (190,659)1,459,770 
Segment net income (loss)$594,965 $570,153 $(3,957)$1,161,161 
Average balances:
Loans$17,739,984 $31,365,547 $439,605 $49,545,136 
Deposits$28,174,781 $23,304,066 $3,483,884 $54,962,731 
As of December 31, 2023
Segment assets$19,165,172 $35,020,106 $15,427,606 $69,612,884 
($ in thousands)Consumer and Business BankingCommercial BankingTreasury and OtherTotal
Year Ended December 31, 2022
Net interest income (loss) before provision for credit losses$1,061,238 $988,158 $(3,515)$2,045,881 
Noninterest income113,722 174,365 10,579 298,666 
Total revenue before provision for credit losses1,174,960 1,162,523 7,064 2,344,547 
Provision for (reversal of) credit losses25,983 48,248 (731)73,500 
Compensation and employee benefits195,394 211,355 70,886 477,635 
Other noninterest expense (1)
196,581 102,018 83,159 381,758 
Total noninterest expense391,975 313,373 154,045 859,393 
Segment income (loss) before income taxes757,002 800,902 (146,250)1,411,654 
Segment net income$537,754 $569,982 $20,347 $1,128,083 
Average balances:
Loans$15,534,259 $29,321,701 $463,498 $45,319,458 
Deposits$27,276,151 $23,252,073 $3,771,355 $54,299,579 
As of December 31, 2022
Segment assets$17,183,425 $32,770,772 $14,157,953 $64,112,150 
(1)The Treasury and Other segment's other noninterest expense is primarily comprised of amortization of tax credit and CRA investments, and other operating expenses. The Consumer and Business Banking segment's other noninterest expense is primarily comprised of corporate overhead allocated expenses, occupancy and equipment expense, other operating expenses, and deposit insurance premiums and regulatory assessments. The Commercial Banking segment’s other noninterest expense is primarily comprised of corporate overhead allocated expenses, deposit account expense, occupancy and equipment expense, and deposit insurance premiums and regulatory assessments.