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Business Segments
 3 Months Ended
Mar. 31, 2025
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 chief operating decision maker (“CODM”) is the Chairman and Chief Executive Officer 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 business segment 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. The impacted first quarter 2024 balances 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 three months ended March 31, 2025 and 2024:
($ in thousands)Consumer and Business BankingCommercial Banking
Treasury and Other
Total
Three Months Ended March 31, 2025
Net interest income before provision for credit losses
$269,733 $253,001 $77,467 $600,201 
Noninterest income32,285 53,579 6,238 92,102 
Total revenue before provision for credit losses302,018 306,580 83,705 692,303 
Provision for credit losses
7,685 40,779 536 49,000 
Compensation and employee benefits61,964 61,187 23,284 146,435 
Other noninterest expense (1)
57,192 42,318 6,203 105,713 
Total noninterest expense119,156 103,505 29,487 252,148 
Segment income before income taxes
175,177 162,296 53,682 391,155 
Segment net income$123,088 $114,025 $53,157 $290,270 
Average balances:
Loans$19,762,287 $33,211,037 $364,387 $53,337,711 
Deposits$32,326,906 $26,131,654 $4,179,022 $62,637,582 
As of March 31, 2025
Segment assets$20,404,813 $35,790,014 $19,970,186 $76,165,013 
($ in thousands)Consumer and Business BankingCommercial Banking
Treasury and Other
Total
Three Months Ended March 31, 2024
Net interest income (loss) before provision for credit losses
$296,839 $288,616 $(20,316)$565,139 
Noninterest income25,422 45,239 7,826 78,487 
Total revenue (loss) before provision for credit losses
322,261 333,855 (12,490)643,626 
Provision for (reversal of) credit losses
2,564 22,907 (471)25,000 
Compensation and employee benefits53,949 61,459 26,404 141,812 
Other noninterest expense (1)
63,171 44,354 (2,963)104,562 
Total noninterest expense117,120 105,813 23,441 246,374 
Segment income (loss) before income taxes202,577 205,135 (35,460)372,252 
Segment net income (loss)
$142,700 $144,643 $(2,268)$285,075 
Average balances:
Loans$18,615,350 $32,881,346 $428,144 $51,924,840 
Deposits$29,306,788 $25,163,151 $2,972,464 $57,442,403 
As of March 31, 2024
Segment assets$19,109,687 $35,154,317 $16,611,666 $70,875,670 
(1)The Consumer and Business Banking segment's other noninterest expense is primarily comprised of corporate overhead allocated expenses, occupancy and equipment expense, and other operating expenses. The Commercial Banking segment’s other noninterest expense is primarily comprised of corporate overhead allocated expenses, deposit account expense, and other operating expenses. The Treasury and Other segment's other noninterest expense is primarily comprised of amortization of tax credit and CRA investments, and other operating expenses, net of any corporate overhead expenses allocated to other segments