Segments

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segments

Segments

The Company segregates financial information for use in assessing its performance and allocating resources among three operating segments: Consumer, Commercial, and Wealth. The Consumer segment consists of various consumer loan and deposit products offered through its retail branch network of approximately 140 locations. This segment also includes residential mortgage, indirect and other consumer loan financing businesses, along with debit and credit card loan and fee businesses.

The Commercial segment provides corporate lending (including the Small Business Banking product line within the branch network), leasing, and international services, along with business and governmental deposit products and commercial cash management services. This segment also includes both merchant and commercial bank card products as well as the Commercial Tradable Products division, which sells fixed-income securities, underwrites municipal bonds and provides securities safekeeping and accounting services to its business and correspondent bank customers. The Wealth segment provides traditional trust and estate planning, advisory and discretionary investment management, and brokerage services. This segment also provides various loan and deposit related services to its private banking customers.

The Company’s business line reporting system derives segment information from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. This information is based on internal management accounting procedures and methods, which have been developed to reflect the underlying economics of the businesses. These methodologies are applied in connection with funds transfer pricing and assignment of overhead costs

among segments. Funds transfer pricing was used in the determination of net interest income. A standard cost for funds used is applied to assets, and a credit for funds provided is applied to liabilities based on their maturity, prepayment and/or repricing characteristics. Income and expense that directly relate to segment operations are recorded in the segment when incurred. Expenses that indirectly support the segments are allocated based on the most appropriate method available.

The Company uses a funds transfer pricing method to value funds used (e.g., loans, fixed assets, and cash) and funds provided (e.g., 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 swap 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 Company’s chief executive officer is its chief operating decision maker ("CODM"). The CODM is the primary individual in control of resource allocation, and the allocation determinations are made in consultation with the Company’s executive management committee, of which the CODM is a member. The Company’s CODM primarily utilizes net income before taxes to evaluate each segment’s performance and allocate resources (including employees, financial, or capital resources), primarily through the Company’s annual budgeting process and periodic segment performance reviews. To manage operations and make decisions regarding resource allocations, the CODM is regularly provided and reviews total non-interest expense at a consolidated level and total non-interest expense for each segment.

The following tables present selected financial information by segment and reconciliations of combined segment totals to consolidated totals. There were no material intersegment revenues between the three segments. Management periodically makes changes to methods of assigning costs and income to its business segments to better reflect operating results. If appropriate, these changes are reflected in prior year information presented below. Net interest income allocated among the segments prior to 2024 has been restated to reflect a funds transfer pricing methodology change implemented on January 1, 2024 for all deposit types, except certificates of deposit. The new methodology moves from a rolling pool to a profitability range methodology. The new methodology more accurately reflects the profitability of affected deposits relative to current rates and removes most interest rate risk from business segments. Additionally, the Company changed its management of its portfolio of residential mortgage loans that it retains, and as a result, the Company began including those loans in the Consumer segment on January 1, 2023. These loans had previously been included in the Other/Elimination column. As a result of this change, loans of approximately $1.9 billion were reclassified from the Other/Elimination column into the Consumer segment in 2023 and prior periods presented below were restated to also reflect this change.

Segment Income Statement Data

(In thousands)	Consumer		Commercial		Wealth		Other/Elimination		Consolidated Totals
Year ended December 31, 2024:
Net interest income	$	512,224	$	515,681	$	87,818	$	(75,477)	$	1,040,246
Provision for credit losses	(37,610)		(1,446)		148		6,005		(32,903)
Non-interest income	102,904		259,229		243,476		9,944		615,553
Investment securities gains, net	—		—		—		7,823		7,823
Non-interest expense	(331,757)		(401,498)		(158,932)		(59,042)		(951,229)
Income before income taxes	$	245,761	$	371,966	$	172,510	$	(110,747)	$	679,490
Year ended December 31, 2023:
Net interest income	$	552,694	$	521,530	$	99,797	$	(175,892)	$	998,129
Provision for loan losses	(27,459)		(3,513)		(28)		(4,451)		(35,451)
Non-interest income	99,910		246,183		218,241		8,711		573,045
Investment securities gains, net	—		—		—		14,985		14,985
Non-interest expense	(326,838)		(391,980)		(157,679)		(54,485)		(930,982)
Income before income taxes	$	298,307	$	372,220	$	160,331	$	(211,132)	$	619,726
Year ended December 31, 2022:
Net interest income	$	582,329	$	542,940	$	118,724	$	(301,808)	$	942,185
Provision for loan losses	(17,816)		(1,195)		(8)		(9,052)		(28,071)
Non-interest income	105,806		224,810		221,099		(5,180)		546,535
Investment securities gains, net	—		—		—		20,506		20,506
Non-interest expense	(306,671)		(365,037)		(152,623)		(24,446)		(848,777)
Income before income taxes	$	363,648	$	401,518	$	187,192	$	(319,980)	$	632,378

Non-interest expense for the Consumer, Commercial, and Wealth segments above is primarily comprised of salaries, incentives, benefits, and allocated overhead costs for service and support. Non-interest expense for the segments also includes expenses for data processing and software, occupancy, and professional and other services.

The segment activity, as shown above, includes both direct and allocated items. Amounts in the “Other/Elimination” column include activity not related to the segments, such as that relating to administrative functions, the investment securities portfolio, and the effect of certain expense allocations to the segments. The provision for credit losses in this category contains the difference between net loan charge-offs assigned directly to the segments and the recorded provision for credit loss expense. Included in this category’s net interest income are earnings of the investment portfolio, which are not allocated to a segment. Additionally, interest expense on the Company's brokered deposits, is included in this column, as the Company's brokered deposits are not allocated to a segment.

Segment Balance Sheet Data

(In thousands)	Consumer		Commercial		Wealth		Other/Elimination		Consolidated Totals
Average balances for 2024:
Assets	$	3,979,290	$	11,616,599	$	1,965,281	$	13,124,110	$	30,685,280
Loans, including held for sale	3,830,810		11,302,254		1,949,127		7,406		17,089,597
Goodwill and other intangible assets	80,889		75,187		746		3,600		160,422
Deposits	12,287,463		9,876,226		2,378,958		(35,640)		24,507,007
Average balances for 2023:
Assets	$	3,984,071	$	11,351,223	$	1,892,958	$	14,712,363	$	31,940,615
Loans, including held for sale	3,832,483		11,061,461		1,878,440		10,458		16,782,842
Goodwill and other intangible assets	81,655		72,066		746		3,600		158,067
Deposits	12,243,033		10,375,075		2,377,397		312,876		25,308,381

The above segment balances include only those items directly associated with the segment. The “Other/Elimination” column includes unallocated bank balances not associated with a segment (such as investment securities, federal funds sold and brokered deposits), balances relating to certain other administrative and corporate functions, and eliminations between segment and non-segment balances. This column also includes the resulting effect of allocating such items as float, deposit reserve and capital for the purpose of computing the cost or credit for funds used/provided.

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 analyses 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.