XML 36 R21.htm IDEA: XBRL DOCUMENT v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting 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 can be found in the Segment Reporting note in the Corporation’s 2024 Annual Report on Form 10-K.
Effective beginning 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 the Corporation’s 2024 Annual Report on Form 10-K 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 the Corporation’s 2024 Annual Report on Form 10-K.
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 Quarter Ended March 31, 2025
($ in thousands)Corporate and Commercial SpecialtyCommunity, Consumer and Business
Risk Management and Shared Services(a)
Consolidated Corporation
Net segment interest income (expense)$227,286 $62,496 $(3,841)$285,941 
Net intersegment interest (expense) income(93,342)135,656 (42,314)— 
Net interest income (expense)133,944 198,152 (46,155)285,941 
Noninterest income (expense)12,903 49,100 (3,227)58,776 
Total income (expense) before provision146,847 247,252 (49,382)344,717 
Provision for credit losses19,014 6,072 (12,083)13,003 
Total income (expense) after provision127,833 241,180 (37,299)331,714 
Noninterest expense
Personnel21,327 59,871 42,699 123,897 
Technology(b)
591 13,045 13,503 27,139 
Occupancy(b)
— 27 15,354 15,381 
Business development and advertising934 837 4,615 6,386 
Equipment(b)
— 1,103 3,424 4,527 
Legal and professional 201 809 5,073 6,083 
Loan and foreclosure costs810 1,344 440 2,594 
FDIC assessment— — 10,436 10,436 
Other intangible amortization— — 2,203 2,203 
Other noninterest expense781 7,490 3,703 11,974 
Allocated indirect expense (income)20,508 52,291 (72,799)— 
Total noninterest expense45,152 136,817 28,651 210,619 
Net income (loss) before income taxes82,681 104,363 (65,950)121,095 
Income tax expense (benefit)15,696 21,916 (18,203)19,409 
Net income (loss)$66,985 $82,447 $(47,747)$101,687 
Loans$17,400,092 $12,417,213 $476,822 $30,294,127 
Allocated goodwill525,836 579,156 — 1,104,992 
Total assets18,202,227 13,245,770 11,861,139 43,309,136 
(a) An unusual item of a $7 million loss on mortgage portfolio sale as a result of the settlement of the mortgage sale announced in the fourth quarter of 2024 is included within the noninterest income (expense) caption.
(b) A portion of total depreciation expense of approximately $61,000, $3 million, and $11 million for the Corporate and Commercial Specialty, Community Consumer and Business, and Risk Management and Shared Services segments, respectively, is included in this expense caption.
As of and for the Quarter Ended March 31, 2024
($ in thousands)Corporate and Commercial SpecialtyCommunity, Consumer and BusinessRisk Management and Shared ServicesConsolidated Corporation
Net segment interest income (expense)$239,729 $61,395 $(43,266)$257,858 
Net intersegment interest (expense) income(107,565)143,987 (36,422)— 
Net interest income (expense)132,164 205,382 (79,688)257,858 
Noninterest income11,869 47,048 6,068 64,985 
Total income (expense) before provision144,033 252,430 (73,620)322,843 
Provision for credit losses14,998 7,256 1,747 24,001 
Total income (expense) after provision129,035 245,174 (75,367)298,842 
Noninterest expense
Personnel20,430 60,569 38,396 119,395 
Technology(a)
601 11,349 14,250 26,200 
Occupancy(a)
— 22 13,611 13,633 
Business development and advertising937 859 4,721 6,517 
Equipment(a)
1 1,398 3,200 4,599 
Legal and professional135 401 4,136 4,672 
Loan and foreclosure costs246 1,652 81 1,979 
FDIC assessment— — 13,946 13,946 
Other intangible amortization— — 2,203 2,203 
Other noninterest expense763 6,388 (2,638)4,513 
Allocated indirect expense (income)19,665 51,424 (71,089)— 
Total noninterest expense42,778 134,062 20,817 197,657 
Net income (loss) before income taxes86,257 111,112 (96,184)101,185 
Income tax expense (benefit)17,808 23,335 (21,127)20,016 
Net income (loss)$68,449 $87,777 $(75,058)$81,169 
Loans$16,171,212 $12,770,285 $552,766 29,494,263 
Allocated goodwill525,836 $579,156 — 1,104,992 
Total assets16,973,027 13,600,201 10,563,856 41,137,084 
(a) A portion of total depreciation expense of approximately $61,000, $2 million, and $10 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.