XML 46 R33.htm IDEA: XBRL DOCUMENT v3.25.0.1
Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segments
24. SEGMENTS
Beginning with the annual period ending December 31, 2024, the Company adopted the guidance within ASU 2023-07, Segment Reporting (Topic 280), which expanded disclosure requirements for significant segment expenses and other segment items. In connection with the adoption of this guidance, the components that comprise net interest income, which include interest income, interest expense and funds transfer pricing adjustments, are presented in separate line items in the reportable segment income statement tables below. Salaries and employee benefits are also presented separately as these expenses were previously included within total non-interest expense. Income statement information for prior periods was recast to conform to the current presentation.
The Company's reportable segments are aggregated with a focus on products and services offered and consist of three reportable segments:
•Commercial: provides commercial banking and treasury management products and services to small and middle-market businesses, specialized banking services to sophisticated commercial institutions and investors within niche industries, as well as financial services to the real estate industry.
•Consumer Related: offers both commercial banking services to enterprises in consumer-related sectors and consumer banking services, such as residential mortgage banking.
•Corporate & Other: consists of the Company's investment portfolio, Corporate borrowings and other related items, income and expense items not allocated to other reportable segments, and inter-segment eliminations.
The Company's chief operating decision maker is the Chief Executive Officer. The chief operating decision maker assesses overall segment performance based on pre-tax income and uses this metric to allocate resources for each segment, focusing on budgeting and forecasting.
The Company's segment reporting process begins with the assignment of all loan and deposit accounts directly to the segments where these products are originated and/or serviced. Equity capital is assigned to each segment based on the risk profile of their assets and liabilities. With the exception of goodwill, which is assigned a 100% weighting, equity capital allocations ranged from 0% to 20% during the year. Any excess or deficient equity not allocated to segments based on risk is assigned to the Corporate & Other segment.
Net interest income, provision for credit losses, and non-interest expense amounts are recorded in their respective segments to the extent the amounts are directly attributable to those segments. Net interest income is recorded in each segment on a TEB with a corresponding increase in income tax expense, which is eliminated in the Corporate & Other segment.
Further, net interest income of a reportable segment includes a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics. Using this funds transfer pricing methodology, liquidity is transferred between users and providers. A net user of funds has lending/investing in excess of deposits/borrowings and a net provider of funds has deposits/borrowings in excess of lending/investing. A segment that is a user of funds is charged for the use of funds, while a provider of funds is credited through funds transfer pricing, which is determined based on the average estimated life of the assets or liabilities in the portfolio. Residual funds transfer pricing mismatches are allocable to the Corporate & Other segment and presented in net interest income.
The net income amount for each reportable segment is further derived by the use of expense allocations. Certain expenses not directly attributable to a specific segment are allocated across all segments based on key metrics, such as number of employees, number of transactions processed for loans and deposits, and average loan and deposit balances. These types of expenses include information technology, operations, human resources, finance, risk management, credit administration, legal, and marketing.
Income taxes are applied to each segment based on estimated effective tax rates. Any difference in the corporate tax rate and the aggregate effective tax rates in the segments are adjusted in the Corporate & Other segment.
The assignment and allocation methodologies used in the segment reporting process discussed above change from time to time as systems are enhanced, methods for evaluating segment performance or product lines change or as business segments are realigned.
The following is a summary of reportable segment balance sheet information:
Consolidated CompanyCommercialConsumer RelatedCorporate & Other
At December 31, 2024:(in millions)
Assets:
Cash, cash equivalents, and investment securities$19,191 $14 $— $19,177 
Loans HFS2,286 — 2,286 — 
Loans HFI, net of deferred fees and costs53,676 31,544 22,132 — 
Less: allowance for credit losses(374)(320)(54)— 
Net loans HFI53,302 31,224 22,078 — 
Goodwill and other intangible assets, net659 291 368 — 
Other assets5,496 367 1,923 3,206 
Total assets$80,934 $31,896 $26,655 $22,383 
Liabilities:
Deposits$66,341 $25,487 $33,767 $7,087 
Borrowings and qualifying debt6,472 15 37 6,420 
Other liabilities1,414 72 476 866 
Total liabilities74,227 25,574 34,280 14,373 
Allocated equity:6,707 2,727 1,899 2,081 
Total liabilities and stockholders' equity$80,934 $28,301 $36,179 $16,454 
Excess funds provided (used)— (3,595)9,524 (5,929)
At December 31, 2023:
Assets:
Cash, cash equivalents, and investment securities$14,288 $13 $125 $14,150 
Loans HFS1,402 — 1,402 — 
Loans HFI, net of deferred fees and costs50,297 29,136 21,161 — 
Less: allowance for credit losses(337)(284)(53)— 
Net loans HFI49,960 28,852 21,108 — 
Goodwill and other intangible assets, net669 292 377 — 
Other assets4,543 398 1,826 2,319 
Total assets$70,862 $29,555 $24,838 $16,469 
Liabilities:
Deposits$55,333 $23,508 $25,101 $6,724 
Borrowings and qualifying debt8,125 7 402 7,716 
Other liabilities1,326 109 338 879 
Total liabilities64,784 23,624 25,841 15,319 
Allocated equity:6,078 2,555 1,790 1,733 
Total liabilities and stockholders' equity$70,862 $26,179 $27,631 $17,052 
Excess funds provided (used)— (3,376)2,793 583 
The following is a summary of reportable segment income statement information:
Consolidated CompanyCommercialConsumer RelatedCorporate & Other
Year Ended December 31, 2024:(in millions)
Interest income$4,541.1 $2,499.6 $1,083.4 $958.1 
Interest expense1,922.2 681.3 611.6 629.3 
Funds transfer pricing— (650.7)994.2 (343.5)
Net interest income2,618.9 1,167.6 1,466.0 (14.7)
Provision for credit losses145.9 136.2 2.2 7.5 
Net interest income after provision for credit losses2,473.0 1,031.4 1,463.8 (22.2)
Non-interest income543.2 120.9 354.3 68.0 
Salaries and employee benefits631.1 135.6 132.6 362.9 
Other non-interest expense (1)1,393.9 486.1 1,228.3 (320.5)
Income before provision for income taxes991.2 530.6 457.2 3.4 
Income tax expense203.5 109.4 90.7 3.4 
Net income$787.7 $421.2 $366.5 $— 
Year Ended December 31, 2023:
Interest income$4,035.3 $2,426.6 $960.3 $648.4 
Interest expense1,696.4 485.2 417.9 793.3 
Funds transfer pricing— (554.2)358.3 195.9 
Net interest income2,338.9 1,387.2 900.6 51.1 
Provision for credit losses62.6 38.3 3.3 21.0 
Net interest income after provision for credit losses2,276.3 1,348.9 897.3 30.1 
Non-interest income280.7 (23.4)287.0 17.1 
Salaries and employee benefits566.3 149.7 125.8 290.8 
Other non-interest expense (1)1,057.1 430.7 799.3 (172.9)
Income before provision for income taxes933.6 745.1 259.2 (70.7)
Income tax expense211.2 174.8 59.5 (23.1)
Net income$722.4 $570.3 $199.7 $(47.6)
Year Ended December 31, 2022:
Interest income$2,691.8 $1,588.7 $811.9 $291.2 
Interest expense475.5 127.7 77.8 270.0 
Funds transfer pricing— 71.2 122.6 (193.8)
Net interest income2,216.3 1,532.2 856.7 (172.6)
Provision for credit losses68.1 47.2 21.1 (0.2)
Net interest income after provision for credit losses2,148.2 1,485.0 835.6 (172.4)
Non-interest income324.6 59.7 247.3 17.6 
Salaries and employee benefits539.5 115.1 173.8 250.6 
Other non-interest expense (1)617.2 350.8 456.6 (190.2)
Income before provision for income taxes1,316.1 1,078.8 452.5 (215.2)
Income tax expense258.8 256.5 107.7 (105.4)
Net income$1,057.3 $822.3 $344.8 $(109.8)
(1)    The composition of other non-interest expense is consistent with Non-interest expense as presented in the Consolidated Income Statement.