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Segment Reporting
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting Disclosure BUSINESS SEGMENTS
ASC 280-10, Segment Reporting, requires that a public business enterprise report certain financial and descriptive information about its reportable operating segments on the basis that is used internally for evaluating segment performance and deciding how to allocate resources to segments.
We regularly assess our strategic plans, operations, reporting structures and financial information provided to management to identify our reportable segments. From December 31, 2015 through September 30, 2022, we operated as one segment. Civic, which we acquired in February 2021, has been identified as an operating segment. In the fourth quarter of 2022, Civic met a quantitative threshold which required it to be disclosed as a reportable operating segment. Therefore, we have two reportable segments as of December 31, 2022: Commercial Banking and Civic and a third segment, Other, which is used for inter-segment eliminations.
The Company’s reportable segments are aggregated with a focus on products and services offered and consist of three reportable segments:
•Commercial Banking – principal business activities are gathering retail and commercial deposits, originating and servicing loans and leases and investing in investment securities. The primary sources of revenue for this segment are: interest earned on loans and leases and investment securities, fees earned in connection with loan and deposit services, and dividends and gains on equity investments. Principal expenses for this segment are interest incurred on deposits and borrowings, general and administrative expenses and provision for credit losses.
•Civic Financial Services (“Civic”) – principal business activity is the financing of business-purpose non-owner-occupied investor properties. The primary sources of revenue for this segment are interest earned and fees earned in connection with lending services. Principal expenses for this segment are interest incurred on inter-segment borrowings, general and administrative expenses and provision for credit losses.
•Other – principal business activity is the elimination of inter-segment amounts.
The Company’s segment reporting process begins with the assignment of all loan and deposit accounts directly to the segments where those products are originated and/or serviced. Intangible assets, net interest income, provision for credit losses, and non-interest expense amounts are recorded in their respective segments to the extent that the amounts are directly attributable to those segments. Provision for income taxes for the segments is presented based on the segment’s contribution to the total consolidated provision for income taxes. Operating segment results are based on the Company’s internal management reporting process and are presented below with generally the same major categories as presented to the chief decision maker. The information presented may not be indicative of how the segments would perform if they operated as independent entities due to the interrelationships among the segments.
The following is a summary of operating segment balance sheet information as of the date indicated:
December 31, 2022
CommercialConsolidated
Balance Sheet Data:BankingCivicOtherCompany
(In thousands)
Loans and leases, net of unearned income$25,295,591 $3,313,538 $— $28,609,129 
Allowance for loan and lease losses(181,912)(18,820)— (200,732)
Total loans and leases, net$25,113,679 $3,294,718 $— $28,408,397 
Goodwill$1,280,288 $96,448 $— $1,376,736 
Core deposit and customer relationship intangibles, net31,358 23 — 31,381 
Total assets(1)
41,045,166 3,590,129 (3,406,359)41,228,936 
Total deposits(2)
34,269,432 16,031 (349,129)33,936,334 
____________________
(1)    The negative balance for total assets in the “Other” segment represents the elimination of inter-segment receivables.
(2)    The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.
The following is a summary of operating segment balance sheet information as of the date indicated:
December 31, 2021
CommercialConsolidated
Balance Sheet Data:BankingCivicOtherCompany
(In thousands)
Loans and leases, net of unearned income$21,562,889 $1,378,659 $— $22,941,548 
Allowance for loan and lease losses(193,871)(6,693)— (200,564)
Total loans and leases, net$21,369,018 $1,371,966 $— $22,740,984 
Goodwill$1,280,288 $125,448 $— $1,405,736 
Core deposit and customer relationship intangibles, net44,662 295 — 44,957 
Total assets(1)
40,248,429 1,616,914 (1,421,999)40,443,344 
Total deposits(2)
35,145,734 26,877 (174,854)34,997,757 
____________________
(1)    The negative balance for total assets in the “Other” segment represents the elimination of inter-segment receivables.
(2)    The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.
The following is a summary of operating segment income statement information for the year indicated:
Year Ended
December 31, 2022
CommercialConsolidated
Results of Operations:BankingCivicOtherCompany
(In thousands)
Net interest income$1,149,257 $141,505 $— $1,290,762 
Provision for credit losses(11,142)(13,358)— (24,500)
Net interest income after provision for credit losses1,138,115 128,147 — 1,266,262 
Noninterest income73,089 1,738 — 74,827 
Noninterest expense637,014 136,507 — 773,521 
Earnings (loss) before income taxes574,190 (6,622)— 567,568 
Income tax expense (benefit)145,634 (1,679)— 143,955 
Net earnings (loss) $428,556 $(4,943)$— $423,613 
The following is a summary of operating segment income statement information for the year indicated:
Year Ended
December 31, 2021
CommercialConsolidated
Results of Operations:BankingCivicOtherCompany
(In thousands)
Net interest income$1,046,535 $57,289 $— $1,103,824 
Provision for credit losses168,864 (6,864)— 162,000 
Net interest income after provision for credit losses1,215,399 50,425 — 1,265,824 
Noninterest income185,654 8,273 — 193,927 
Noninterest expense564,798 72,619 — 637,417 
Earnings (loss) before income taxes836,255 (13,921)— 822,334 
Income tax expense (benefit)218,950 (3,575)— 215,375 
Net earnings (loss)$617,305 $(10,346)$— $606,959