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Segment Reporting
 9 Months Ended
Sep. 30, 2024
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 the Corporation’s 2023 Annual Report on Form 10-K, 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 the methodologies described in the Corporation’s 2023 Annual Report on Form 10-K. 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 brief description of each business segment is presented below. A more in-depth discussion of these segments can be found in the Segment Reporting note in the Corporation’s 2023 Annual Report on Form 10-K.
The Corporate and Commercial Specialty segment serves a wide range of customers including 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 and small to mid-sized businesses. The Community, Consumer, and Business segment serves individuals, as well as small and mid-sized businesses, by providing lending and deposit solutions. 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).
Information about the Corporation’s segments is presented below:
Corporate and Commercial Specialty
Three Months Ended Sep 30,Nine Months Ended Sep 30,
($ in thousands)2024202320242023
Net interest income$254,935 $250,365 $749,062 $710,031 
Net intersegment interest (expense)(98,898)(106,675)(291,872)(288,366)
Segment net interest income156,037 143,690 457,190 421,665 
Noninterest income37,017 34,086 106,570 99,254 
Total revenue193,054 177,776 563,761 520,919 
Provision for credit losses17,009 14,066 48,930 41,523 
Noninterest expense65,415 63,265 197,159 186,521 
Income before income taxes110,630 100,445 317,672 292,876 
Income tax expense20,999 19,293 59,845 54,104 
Net income$89,630 $81,152 $257,827 $238,772 
Allocated goodwill$525,836 $525,836 
Community, Consumer, and Business
Three Months Ended Sep 30,Nine Months Ended Sep 30,
($ in thousands)2024202320242023
Net interest income$56,574 $67,139 $172,575 $219,883 
Net intersegment interest income135,862 123,900 401,353 317,820 
Segment net interest income192,436 191,039 573,928 537,703 
Noninterest income26,009 29,670 75,921 85,870 
Total revenue218,445 220,709 649,848 623,573 
Provision for credit losses5,195 7,381 17,611 21,467 
Noninterest expense115,656 108,127 333,711 328,790 
Income before income taxes97,594 105,202 298,526 273,316 
Income tax expense20,495 22,092 62,691 57,396 
Net income$77,099 $83,109 $235,835 $215,920 
Allocated goodwill$579,156 $579,156 
 Risk Management and Shared Services
Three Months Ended Sep 30,Nine Months Ended Sep 30,
($ in thousands)2024202320242023
Net interest (loss)$(49,001)$(63,260)$(144,677)$(143,743)
Net intersegment interest (expense)(36,964)(17,225)(109,481)(29,454)
Segment net interest (loss)(85,964)(80,485)(254,158)(173,197)
Noninterest income4,196 2,823 14,874 9,071 
Total revenue(81,768)(77,663)(239,284)(164,126)
Provision for credit losses(1,213)496 1,459 (975)
Noninterest expense19,526 24,814 63,245 58,980 
(Loss) before income taxes(100,081)(102,972)(303,988)(222,131)
Income tax (benefit)(21,370)(21,959)(95,085)(41,202)
Net (loss)$(78,711)$(81,013)$(208,902)$(180,929)
Allocated goodwill$— $— 
Consolidated Total
Three Months Ended Sep 30,Nine Months Ended Sep 30,
($ in thousands)2024202320242023
Net interest income$262,509 $254,244 $776,960 $786,171 
Net intersegment interest income— — — — 
Segment net interest income262,509 254,244 776,960 786,171 
Noninterest income67,221 66,579 197,365 194,195 
Total revenue329,730 320,823 974,325 980,366 
Provision for credit losses20,991 21,943 68,000 62,014 
Noninterest expense200,597 196,205 594,115 574,291 
Income before income taxes108,142 102,674 312,211 344,061 
Income tax expense20,124 19,426 27,451 70,299 
Net income$88,018 $83,248 $284,760 $273,762 
Allocated goodwill$1,104,992 $1,104,992