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Business Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Business Segment Reporting Business Segment Reporting
The Company's reportable segments are determined by its Chief Executive Officer, who is the designated Chief Operating Decision Maker (“CODM”). The company has strategically aligned its operations into the following three reportable segments: Consumer Banking, Commercial Banking, and Wealth Management (collectively, the Business Segments). These operating segments are strategic business units that offer different products and services and have different marketing strategies.
To evaluate segment performance and inform resource allocation decisions, the CODM regularly reviews each segment’s revenues and net income compared to budget. This process allows the Company to (1) assess the profitability of a specific business segment by aligning relevant costs with revenue, and (2) evaluate each business segment in a way that reflects its economic impact on consolidated earnings.
During the year ended December 31, 2025, the Company modified the structure of its internal organization to better align financial reporting with the way management evaluates performance and allocates resources. Previously, the Company reported two operating segments: Community Banking and Wealth Management. As a result of the organizational changes, management now reviews operating performance and makes resource allocation decisions based on three operating segments: Consumer, Commercial, and Wealth Management.
This change represents a reconsideration of the Company’s operating and reportable segments in accordance with ASC 280, Segment Reporting. In accordance with ASC 280‑10‑50‑34, the Company has recast all prior‑period segment information presented for comparative purposes to reflect the new segment structure. The change affected the aggregation and presentation of certain revenues, expenses, and allocated corporate costs among the Company’s operating segments, but did not impact consolidated net income, total assets, shareholders’ equity, or cash flows for any periods presented.
Consistent with the requirements of ASC 250‑10‑50‑1(a), the recast of prior periods has been applied retrospectively to all comparative periods presented herein, and the nature and reason for the change in segment presentation are disclosed. The change did not result from a change in accounting principle but rather from a change in the organizational structure that constitutes a change in the internal information regularly reviewed by the CODM.
Management believes the new segment structure provides improved transparency into the distinct customer groups served by the Company and the economic characteristics of each segment.
The Consumer Banking operating segment consists of various consumer loan and deposit products offered primarily through its 156 full-service branches. This segment also includes residential mortgage, installment lending and other consumer loan financing options, along with debit and credit card loan and fee businesses.
The Commercial Banking operating segment includes full-service relationship banking solutions to businesses, agencies and community organizations including commercial, small business and government segments. Our business payment solutions include treasury management services, merchant and commercial bank card products.
The Wealth Management operating segment provides a full range of “fee-only” wealth management solutions, including investment management, fiduciary services, financial, estate, and tax planning services to individuals, businesses, and foundations. Services are provided through Central Trust Company and Central Investment Advisors, both divisions of The Central Trust Bank.
The Company uses a funds transfer pricing method to value funds used (e.g., loans, fixed assets, cash, etc.) and funds provided (deposits, borrowings, and equity) by the business segments and their components. This process assigns a specific value to each new source or use of funds with a maturity, based on current interest rates, thus determining an interest spread at the time of the transaction. Non-maturity assets and liabilities are valued using weighted average pools. The funds transfer pricing process attempts to remove interest rate risk from valuation, allowing management to compare profitability under various rate environments. The operating segments also include a number of allocations of income and expense from various support and overhead centers within the Company. Management periodically makes changes to methods of assigning costs and income to its business segments to better reflect operating results.
Segment Financial Information
The following table presents selected financial information by segment and reconciliations of combined segment totals to consolidated totals.
ConsumerCommercialWealth ManagementCorp / OtherTotal
(dollars in thousands)
Three Months Ended March 31, 2026
Net interest income$81,271 $113,043 $(15)$14,318 $208,617 
Provision for credit losses2,193 932 - 21 3,146 
Net interest income after provision for credit losses79,078 112,111 (15)14,297 205,471 
Noninterest income32,034 10,732 21,333 989 65,088 
Noninterest expense62,994 39,623 13,445 10,554 126,616 
Income before income taxes48,118 83,220 7,873 4,732 143,943 
Income taxes11,530 19,274 1,894 157 32,855 
Net income$36,588 $63,946 $5,979 $4,575 $111,088 
Assets under advice$- $- $16,012,029 $- $16,012,029 
Three Months Ended March 31, 2025
Net interest income$75,181 $106,290 $(19)$7,821 $189,273 
Provision for credit losses1,885 1,031 (3)7 2,920 
Net interest income after provision for credit losses73,296 105,259 (16)7,814 186,353 
Noninterest income28,494 10,377 18,419 1,498 58,788 
Noninterest expense59,907 39,370 12,529 10,455 122,261 
Income before income taxes41,883 76,266 5,874 (1,143)122,880 
Income taxes10,026 17,613 1,407 (964)28,082 
Net income$31,857 $58,653 $4,467 $(179)$94,798 
Assets under advice$- $-$13,543,819 $- $13,543,819 
The segment activity, as shown above, includes both direct and allocated items. Amounts in the "Corporate / Other" column include activity not related to the segments, such as administrative functions, various support and overhead
operating units of the Company. Corporate administrative functions such as Compliance, Accounting, Credit Administration, Human Resources, and our Central Technology Services team expenses are allocated to the segments with an offset in Corp/Other noninterest expense. Expenses for the parent company, the administrative and support functions within the markets not specific to a segment, regulatory expenses, director and shareholder costs, community outreach, and other similar expenses are not allocated to the segments.
The Company's reportable segments are strategic lines of business that offer different products and services. They are managed separately because each line services a specific customer need, requiring different performance measurement analysis and marketing strategies. The performance measurement of the segments is based on the management structure of the Company and is not necessarily comparable with similar information for any other financial institution. The information is also not necessarily indicative of the segments' financial condition and results of operations if they were independent entities.