Segment information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment information

14. Segment information

Reportable segments have been determined based upon the Company's internal profitability reporting system, which is organized by strategic business unit. Certain strategic business units have been combined for segment information reporting purposes where the nature of the products and services, the type of customer and the distribution of those products and services are similar. The reportable segments are Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking and Retail Banking.

The financial information of the Company's segments was compiled utilizing the accounting policies described in note 23 of Notes to Financial Statements in the 2022 Annual Report. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, the financial information of the reported segments is not necessarily comparable with similar information reported by other financial institutions. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data. As described in the 2022 Annual Report, in the fourth quarter of 2022 the Company revised its segment reporting related to: allocations of certain incentive compensation; a refinement of consumption-driven services allocations including cybersecurity and modeling functions; an expanded allocation of franchise-type services such as risk management, data services and legal services; and a refinement in allocation of technology application costs in support of business activities. Additionally certain lending relationships within the hospitality sector that had previously received oversight within the Commercial Banking segment were realigned to the Commercial Real Estate segment. As a result, financial information for the three months ended March 31, 2022 has been reclassified to provide segment information on a comparable basis, as noted in the accompanying table.

14. Segment information, continued

	Three Months Ended March 31, 2022
	Total Revenues as Previously Reported		Impact of Changes			Total Revenues as Reclassified		Net Income (Loss) as Previously Reported			Impact of Changes			Net Income (Loss) as Reclassified
	(In thousands)
Business Banking	$	141,346		—		$	141,346	$	41,111			(1,579	)	$	39,532
Commercial Banking		289,372		(10,437	)		278,935		144,608			(16,148	)		128,460
Commercial Real Estate		202,087		10,437			212,524		97,610			13,636			111,246
Discretionary Portfolio		64,727		—			64,727		35,385			(700	)		34,685
Residential Mortgage Banking		137,444		—			137,444		28,964			(1,850	)		27,114
Retail Banking		355,148		—			355,148		84,164			(5,082	)		79,082
All Other		254,937		—			254,937		(69,668	)		11,723			(57,945	)
Total	$	1,445,061		—		$	1,445,061	$	362,174			—		$	362,174

Information about the Company's segments follows:

	Three Months Ended March 31
	2023									2022
	Total  Revenues(a)			Inter- segment Revenues			Net Income (Loss)			Total  Revenues(a)		Inter- segment Revenues			Net Income (Loss)
	(In thousands)
Business Banking	$	273,551		$	877		$	113,251		$	141,346	$	671		$	39,532
Commercial Banking		507,020			10,226			219,979			278,935		863			128,460
Commercial Real Estate		225,719			289			80,809			212,524		179			111,246
Discretionary Portfolio		(33,396	)		(15,205	)		(40,397	)		64,727		(27,805	)		34,685
Residential Mortgage Banking		77,654			20,472			(12,354	)		137,444		37,464			27,114
Retail Banking		831,842			(39	)		316,594			355,148		(3	)		79,082
All Other		523,007			(16,620	)		23,742			254,937		(11,369	)		(57,945	)
Total	$	2,405,397		$	—		$	701,624		$	1,445,061	$	—		$	362,174

	Average Total Assets
	Three Months Ended March 31				Year Ended December 31
	2023		2022		2022
	(In millions)
Business Banking	$	7,825	$	6,568	$	7,597
Commercial Banking (b)		48,222		26,329		40,930
Commercial Real Estate (b)		32,171		23,939		30,599
Discretionary Portfolio		50,501		22,899		42,657
Residential Mortgage Banking		2,605		6,250		3,986
Retail Banking		21,421		18,610		20,312
All Other		39,854		47,053		44,171
Total	$	202,599	$	151,648	$	190,252

(a)Total revenues are comprised of net interest income and other income. Net interest income is the difference between taxable-equivalent interest earned on assets and interest paid on liabilities owed by a segment and a funding charge (credit) based on the Company's internal funds transfer and allocation methodology. Segments are charged a cost to fund any assets (e.g. loans) and are paid a funding credit for any funds provided (e.g. deposits). The taxable-equivalent adjustment aggregated $13,462,000 and $3,234,000 for the three-month periods ended March 31, 2023 and 2022, respectively, and is eliminated in "All Other" total revenues. Intersegment revenues are included in total revenues of the reportable segments. The elimination of intersegment revenues is included in the determination of "All Other" total revenues.

(b)Average total assets reclassified from the Commercial Banking segment to the Commercial Real Estate segment relating to lending relationships in the hospitality sector totaled $1.29 billion for the three months ended March 31, 2022.