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Segment Reporting
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Corporation utilizes a risk-based internal profitability measurement system to provide strategic business unit reporting. The profitability measurement system is based on internal management methodologies designed to produce consistent results and reflect the underlying economics of the units. 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 three reportable segments are Corporate and Commercial Specialty; Community, Consumer, and Business; and Risk Management and Shared Services. The financial information of the Corporation’s segments has been compiled utilizing the accounting policies described in Note 1, with certain exceptions. The more significant of these exceptions are described herein.
The reportable segment results are presented based on the Corporation's internal management accounting process. 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 U.S. GAAP. As a result, reported segments and the financial information of the reported segments are 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 previously reported segment financial data. Additionally, the information presented is not indicative of how the segments would perform if they operated as independent entities.
To determine financial performance of each segment, the Corporation allocates FTP assignments, the provision for credit losses, certain noninterest expenses, income taxes, and equity to each segment. Allocation methodologies are subject to periodic adjustment as the internal management accounting system is revised, the interest rate environment evolves, and business or
product lines within the segments change. Also, because the development and application of these methodologies is a dynamic process, the financial results presented may be periodically reviewed.
The Corporation allocates net interest income using an internal FTP methodology that charges users of funds (assets, primarily loans) and credits providers of funds (liabilities, primarily deposits) based on the maturity, prepayment, and/or re-pricing characteristics of the assets and liabilities. The net effect of this allocation is offset in the Risk Management and Shared Services segment to ensure consolidated totals reflect the Corporation's net interest income. The net FTP allocation is reflected as net intersegment interest income (expense) in the accompanying tables.
The provision for credit losses is allocated to segments based on the expected long-term annual net charge off rates attributable to the credit risk of loans managed by the segment during the period. In contrast, the level of the consolidated provision for credit losses is determined based on an ACLL model using methodologies described in Note 1. The net effect of the credit provision is recorded in Risk Management and Shared Services. Indirect expenses incurred by certain centralized support areas are allocated to segments based on actual usage (for example, volume measurements) and other criteria. Certain types of administrative expense and bank-wide expense accruals (including, when applicable, amortization of CDIs and other intangible assets associated with acquisitions, acquisition-related costs, and asset gains on disposed business units) are generally not allocated to segments. Income taxes are allocated to segments based on the Corporation’s estimated effective tax rate, with certain segments adjusted for any tax-exempt income or non-deductible expenses. Equity is allocated to the segments based on regulatory capital requirements and in proportion to an assessment of the inherent risks associated with the business of the segment (including interest, credit and operating risk).
A description of each business segment is presented below.
Corporate and Commercial Specialty: The Corporate and Commercial Specialty segment serves a wide range of customers including private clients, larger businesses, developers, not-for-profits, municipalities, and financial institutions by providing lending and deposit solutions as well as the support to deliver, fund, and manage such banking solutions. In addition, this segment provides a variety of investment, fiduciary, and retirement planning products and services to individuals, private clients, and small to mid-sized businesses. In serving this segment, we compete based on an in-depth understanding of our customers’ financial needs, the ability to match market competitive solutions to those needs, and the highest standards of relationship and service excellence in the delivery of these services. Delivery of services is provided through our corporate and commercial units, our CRE unit, as well as our specialized industries and commercial financial services units. Within this segment we provide the following products and services: (1) lending solutions, such as commercial loans and lines of credit, CRE financing, construction loans, letters of credit, leasing, ABL & equipment finance, and, for our larger clients, loan syndications; (2) deposit and cash management solutions such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services; (3) specialized financial services such as interest rate risk management, and foreign exchange solutions; (4) fiduciary services such as administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management; and (5) investable funds solutions such as savings, money market deposit accounts, IRA accounts, CDs, fixed and variable annuities, full-service, discount and online investment brokerage; investment advisory services; and trust and investment management accounts. During the first quarter of 2021, the Corporation sold its wealth management subsidiary, Whitnell.
Community, Consumer, and Business: The Community, Consumer, and Business segment serves individuals, as well as small and mid-sized businesses, by providing lending and deposit solutions. In serving this segment, we compete based on providing a broad range of solutions to meet the needs of our customers in their entire financial lifecycle, convenient access to our services through multiple channels such as branches, phone based services, online and mobile banking, and a relationship based business model which assists our customers in navigating any changes and challenges in their financial circumstances. Delivery of services is provided through our various consumer banking and community banking units. Within this segment we provide the following products and services: (1) lending solutions such as residential mortgages, home equity loans and lines of credit, personal and installment loans, auto finance loans, business loans, and business lines of credit, and (2) deposit and transactional solutions such as checking, credit and debit cards, online banking and bill pay, and money transfer services.
Risk Management and Shared Services: The Risk Management and Shared Services segment includes key shared operational functions and also includes residual revenue and expenses, representing the difference between actual amounts incurred and the amounts allocated to operating segments, including interest rate risk residuals (FTP mismatches) and credit risk and provision residuals (long-term credit charge mismatches).
Effective during the third quarter of 2022, the product and marketing functions were moved to the Risk Management and Shared Services segment from the Community, Consumer, and Business and Corporate and Commercial Specialty segments in order to centralize these functions under common leadership.
Effective during the first quarter of 2022, certain support functions and a select group of banking regions were realigned into the Community, Consumer, and Business segment from the Corporate and Commercial Specialty segment.
Effective during 2021, select back office support functions that specifically support Community, Consumer and Business were reorganized under that segment from the Risk Management and Shared Services segment.
Information about the Corporation’s segments is presented below:
Corporate and Commercial Specialty
For the Years Ended December 31,
($ in thousands)202320222021
Net interest income$958,046 $566,566 $361,634 
Net intersegment interest income (expense)(391,276)(103,360)18,001 
Segment net interest income566,769 463,205 379,636 
Noninterest income136,995 145,751 165,345 
Total revenue703,764 608,956 544,980 
Provision for credit losses55,801 49,543 60,311 
Noninterest expense248,926 234,234 219,655 
Income before income taxes399,037 325,179 265,015 
Income tax expense71,766 59,000 46,906 
Net income$327,271 $266,179 $218,109 
Allocated goodwill$525,836 $525,836 $525,836 
Community, Consumer, and Business
For the Years Ended December 31,
($ in thousands)202320222021
Net interest income$285,175 $322,725 $289,075 
Net intersegment interest income447,100 176,164 62,376 
Segment net interest income732,276 498,889 351,451 
Noninterest income108,858 118,848 151,474 
Total revenue841,133 617,737 502,925 
Provision for credit losses28,258 20,755 20,622 
Noninterest expense435,986 417,042 401,206 
Income before income taxes376,889 179,939 81,097 
Income tax expense79,147 37,787 17,030 
Net income$297,742 $142,152 $64,067 
Allocated goodwill$579,156 $579,156 $579,156 
Risk Management and Shared Services
For the Years Ended December 31,
($ in thousands)202320222021
Net interest income$(203,647)$68,031 $75,146 
Net intersegment (expense)(55,824)(72,803)(80,378)
Segment net interest income(259,471)(4,772)(5,232)
Noninterest income(182,671)17,772 15,546 
Total revenue(442,142)12,999 10,314 
Provision for credit losses(1,038)(37,300)(168,944)
Noninterest expense128,770 95,787 89,063 
Income (loss) before income taxes(569,873)(45,488)90,195 
Income tax expense (benefit)
(127,816)(3,279)21,377 
Net income (loss)$(442,057)$(42,209)$68,818 
Allocated goodwill$— $— $— 
Consolidated Total
For the Years Ended December 31,
($ in thousands)202320222021
Net interest income$1,039,573 $957,321 $725,855 
Net intersegment interest income— — — 
Segment net interest income1,039,573 957,321 725,855 
Noninterest income63,182 282,370 332,364 
Total revenue1,102,756 1,239,691 1,058,219 
Provision for credit losses83,021 32,998 (88,011)
Noninterest expense813,682 747,063 709,924 
Income before income taxes206,052 459,630 436,307 
Income tax expense23,097 93,508 85,313 
Net income$182,956 $366,122 $350,994 
Allocated goodwill$1,104,992 $1,104,992 $1,104,992