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Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block] Segment Reporting
The Corporation is managed through operating segments based on our internal structure and management process, which is how we assess performance and allocate resources to the segments. Certain operating segments have been aggregated into our three reportable segments 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. A description of the products and services and the related customers for each reportable segment is as follows:
Corporate and Commercial Specialty: 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. 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; and (3) specialized financial services such as interest rate risk management, and foreign exchange solutions.
Community, Consumer and Business: The Community, Consumer and Business segment serves individuals and businesses by providing lending and deposit solutions and a variety of investment, fiduciary, and retirement planning products and services. 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; (2) deposit and transactional solutions such as checking, credit and debit cards, online banking and bill pay, and money transfer services; (3) fiduciary services such as administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management; and (4) 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.
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 fourth quarter of 2024, the Corporation made the change to move the private wealth operating segment from the Corporate and Commercial Specialty segment to the Community, Consumer and Business segment given its continued alignment with the products, services, and customers of that segment. This impacted the composition of the reportable segments and the Corporation has recast the impacted items of reportable segment information for the earlier presented periods.
The financial information of the Corporation’s segments disclosed below has been compiled utilizing the accounting policies described in Note 1, with certain exceptions based on internal management accounting policies. The significant exceptions are as follows:
The Corporation allocates certain net interest income, the provision for credit losses, certain noninterest expenses, and income taxes to each operating 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. There were no significant changes in the current year to the methods for allocations to the segments from the prior periods.
The Corporation allocates certain 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. This 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 above allocations is recorded within the Risk Management and Shared Services segment to ensure consolidated totals reflect the Corporation's consolidated financial information.
Indirect expenses incurred by certain centralized support areas (including facilities, information technology services and applications, management expenses, and FDIC expense) are allocated to segments based on actual usage (for example, volume measurements or FTEs) 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 and remain in the Risk Management and Shared Services segment. This allocation is reflected as allocated indirect expense in the accompanying tables.
Income tax expense (benefit) is 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.
Financial information about the Corporation’s segments is presented below:
As of and for the Year Ended December 31, 2024
($ in thousands)Corporate and Commercial SpecialtyCommunity, Consumer and Business
Risk Management and Shared Services(a)
Consolidated Corporation
Net segment interest income (expense)$976,878 $247,791 $(177,421)$1,047,248 
Net intersegment interest (expense) income(429,917)579,587 (149,670)— 
Net interest income (expense)546,961 827,378 (327,091)1,047,248 
Noninterest income (expense)53,435 198,485 (261,327)(9,407)
Total income (expense) before provision600,396 1,025,863 (588,418)1,037,841 
Provision for credit losses66,390 24,759 (6,163)84,986 
Total income (expense) after provision534,006 1,001,104 (582,255)952,855 
Noninterest expense
Personnel79,853 232,787 175,316 487,956 
Technology(b)
2,594 47,241 57,728 107,563 
Occupancy(b)
— 61 54,561 54,622 
Business development and advertising3,543 3,169 21,430 28,142 
Equipment(b)
2 5,930 12,499 18,431 
Legal and professional 825 1,978 18,798 21,601 
Loan and foreclosure costs1,100 5,018 2,353 8,471 
FDIC assessment— — 38,439 38,439 
Other intangible amortization— — 8,811 8,811 
Loss on prepayments of FHLB advances— — 14,243 14,243 
Other noninterest expense (income)3,338 27,921 (1,141)30,118 
Allocated indirect expense (income)88,036 205,979 (294,015)— 
Total noninterest expense179,291 530,084 109,022 818,397 
Net income (loss) before income taxes354,715 471,020 (691,277)134,459 
Income tax expense (benefit)64,346 97,460 (150,492)11,314 
Net income (loss)$290,369 $373,560 $(540,785)$123,145 
Loans$16,959,921 $12,318,648 $490,017 $29,768,586 
Allocated goodwill525,836 579,156 — 1,104,992 
Total assets17,794,372 13,892,891 11,335,805 43,023,068 
(a) Unusual items including a $130 million loss on mortgage portfolio sale and a $148 million loss on investment securities as a result of the balance sheet repositioning announced in the fourth quarter of 2024 are included within the noninterest income (expense) caption.
(b) A portion of total depreciation expense of approximately $242,000, $10 million, and $39 million for the Corporate and Commercial Specialty, Community Consumer and Business, and Risk Management and Shared Services segments, respectively, is included in this expense caption.
As of and for the Year Ended December 31, 2023
($ in thousands)Corporate and Commercial SpecialtyCommunity, Consumer and Business
Risk Management and Shared Services(a)
Consolidated Corporation
Net segment interest income (expense)$933,929 $309,291 $(203,647)$1,039,573 
Net intersegment interest (expense) income(432,073)487,897 (55,824)— 
Net interest income (expense)501,856 797,188 (259,471)1,039,573 
Noninterest income (expense)51,905 193,948 (182,671)63,182 
Total income (expense) before provision553,761 991,136 (442,142)1,102,756 
Provision for credit losses54,302 29,757 (1,038)83,021 
Total income (expense) after provision499,459 961,379 (441,104)1,019,734 
Noninterest expense
Personnel71,688 236,385 160,282 468,355 
Technology(b)
2,931 44,661 54,426 102,018 
Occupancy(b)
— 95 57,109 57,204 
Business development and advertising4,042 4,001 20,362 28,405 
Equipment(b)
1 5,770 13,892 19,663 
Legal and professional1,359 1,933 16,619 19,911 
Loan and foreclosure costs877 3,065 1,466 5,408 
FDIC assessment— — 67,072 67,072 
Other intangible amortization— — 8,811 8,811 
Other noninterest expense3,501 29,800 3,534 36,837 
Allocated indirect expense (income)83,190 191,613 (274,803)— 
Total noninterest expense167,589 517,323 128,770 813,682 
Net income (loss) before income taxes331,870 444,056 (569,873)206,052 
Income tax expense (benefit)59,143 91,770 (127,816)23,097 
Net income (loss)$272,727 $352,286 $(442,057)$182,956 
Loans$16,045,897 $12,642,123 $528,198 29,216,218 
Allocated goodwill525,836 $579,156 — 1,104,992 
Total assets16,897,021 13,453,475 10,665,359 41,015,855 
(a) Unusual items including a $136 million loss on mortgage portfolio sale and a $65 million loss on investment securities as a result of the balance sheet repositioning announced in the fourth quarter of 2023 are included within the noninterest income (expense) caption and a $31 million FDIC special assessment is included in the FDIC assessment caption.
(b) A portion of total depreciation expense of approximately $164,000, $8 million, and $39 million for the Corporate and Commercial Specialty, Community Consumer and Business, and Risk Management and Shared Services segments, respectively, is included in this expense caption.
As of and for the Year Ended December 31, 2022
($ in thousands)Corporate and Commercial SpecialtyCommunity, Consumer and BusinessRisk Management and Shared ServicesConsolidated Corporation
Net segment interest income$526,870 $362,420 $68,031 $957,321 
Net intersegment interest (expense) income(118,059)190,862 (72,803)— 
Net interest income (expense)408,811 553,282 (4,772)957,321 
Noninterest income58,938 205,660 17,772 282,370 
Total income before provision467,749 758,942 12,999 1,239,691 
Provision for credit losses47,939 22,359 (37,300)32,998 
Total income after provision419,810 736,583 50,299 1,206,693 
Noninterest expense
Personnel71,043 238,962 144,096 454,101 
Technology(a)
3,029 33,330 54,341 90,700 
Occupancy(a)
— 82 59,712 59,794 
Business development and advertising3,703 3,428 18,394 25,525 
Equipment(a)
1 5,365 14,266 19,632 
Legal and professional1,025 4,209 13,016 18,250 
Loan and foreclosure costs528 4,308 1,089 5,925 
FDIC assessment— — 22,650 22,650 
Other intangible amortization— — 8,811 8,811 
Other noninterest expense3,350 31,720 6,605 41,675 
Allocated indirect expense (income)73,548 173,645 (247,193)— 
Total noninterest expense156,227 495,049 95,787 747,063 
Net income (loss) before income taxes263,583 241,534 (45,488)459,630 
Income tax expense (benefit)47,440 49,347 (3,279)93,508 
Net income (loss)$216,143 $192,187 $(42,209)$366,122 
Loans$17,083,254 $11,231,404 $484,911 $28,799,569 
Allocated goodwill525,836 579,156 — 1,104,992 
Total assets17,909,477 12,073,694 9,422,556 39,405,727 
(a) A portion of total depreciation expense of approximately $15,000, $4 million, and $41 million for the Corporate and Commercial Specialty, Community Consumer and Business, and Risk Management and Shared Services segments, respectively, is included in this expense caption.
Expenses included within the other noninterest expense line of the segment information above relate to the remaining segment expenses including office expense and card issuance costs. None of the individual expense categories rise to the level of significance for the segment; however, they are utilized in determining the profit or loss measure for each segment.
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, reportable segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Furthermore, the information presented is not indicative of how the segments would perform if they operated as independent entities.
The chief operating decision maker for each of the segments is the President and Chief Executive Officer of the Corporation. For the Corporate and Commercial Specialty and Community, Consumer and Business segments, the chief operating decision maker utilizes net interest income, net income and average total loans and deposits in allocating resources for each segment predominantly in the annual budget and forecasting process. The chief operating decision maker considers budget-to-actual variances on a monthly basis for both profit measures when making decisions about allocating capital and personnel to the segments. Based on the reviews of these two segments and other company-wide initiatives, the chief operating decision maker is informed about allocation of resources to the Risk Management and Shared Services segment.