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Segment Reporting
 6 Months Ended
Jun. 30, 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 three months ended June 30, 2025
(in thousands)Corporate and Commercial SpecialtyCommunity, Consumer and BusinessRisk Management and Shared ServicesConsolidated Corporation
Net segment interest income (expense)$242,978 $68,871 $(11,849)$300,000 
Net intersegment interest (expense) income(104,430)133,665 (29,235)— 
Net interest income (expense)138,548 202,536 (41,084)300,000 
Noninterest income (expense)11,984 51,461 3,532 66,977 
Total income (expense) before provision150,532 253,997 (37,552)366,977 
Provision for credit losses20,368 6,363 (8,735)17,996 
Total income (expense) after provision130,164 247,634 (28,817)348,981 
Noninterest expense
Personnel20,149 56,641 50,204 126,994 
Technology(a)
842 12,903 12,763 26,508 
Occupancy(a)
33 31 12,580 12,644 
Business development and advertising1,252 968 5,528 7,748 
Equipment(b)
— 1,427 3,067 4,494 
Legal and professional 220 527 5,927 6,674 
Loan and foreclosure costs260 1,172 1,273 2,705 
FDIC assessment— — 9,708 9,708 
Other intangible amortization— — 2,203 2,203 
Other noninterest expense934 8,001 739 9,674 
Allocated indirect expense (income)22,112 52,884 (74,996)— 
Total noninterest expense45,802 134,554 28,996 209,352 
Net income (loss) before income taxes84,362 113,080 (57,813)139,629 
Income tax expense (benefit)15,968 23,747 (11,316)28,399 
Net income (loss)$68,394 $89,333 $(46,497)$111,230 
Loans$17,617,892 $12,531,178 $458,535 $30,607,605 
Allocated goodwill525,836 579,156 — 1,104,992 
Total assets18,431,586 13,403,906 12,158,236 43,993,729 
(a) A portion of total depreciation expense of $0.1 million, $2.7 million, and $9.3 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 three months ended June 30, 2024
(in thousands)Corporate and Commercial SpecialtyCommunity, Consumer and BusinessRisk Management and Shared ServicesConsolidated Corporation
Net segment interest income (expense)$245,797 $63,207 $(52,411)$256,593 
Net intersegment interest (expense) income(110,719)146,814 (36,095)— 
Net interest income (expense)135,078 210,021 (88,506)256,593 
Noninterest income11,671 48,878 4,610 65,159 
Total income (expense) before provision146,749 258,899 (83,896)321,752 
Provision for credit losses16,038 6,045 925 23,008 
Total income (expense) after provision130,711 252,854 (84,821)298,745 
Noninterest expense
Personnel20,447 56,159 44,975 121,581 
Technology(a)
586 11,717 14,858 27,161 
Occupancy(a)
— 11 13,117 13,128 
Business development and advertising823 744 5,968 7,535 
Equipment(a)
— 1,309 3,141 4,450 
Legal and professional289 208 3,932 4,429 
Loan and foreclosure costs113 1,121 559 1,793 
FDIC assessment— — 7,131 7,131 
Other intangible amortization— — 2,203 2,203 
Other noninterest expense841 5,710 (101)6,450 
Allocated indirect expense (income)19,936 52,945 (72,881)— 
Total noninterest expense43,035 129,924 22,902 195,861 
Net income (loss) before income taxes87,676 122,930 (107,722)102,884 
Income tax expense (benefit)14,084 25,815 (52,589)(12,689)
Net income (loss)$73,592 $97,115 $(55,133)$115,573 
Loans$16,191,823 $12,874,874 $551,574 29,618,271 
Allocated goodwill525,836 $579,156 — 1,104,992 
Total assets16,817,587 13,736,691 11,069,628 41,623,908 
(a) A portion of total depreciation expense of $0.1 million, $2.3 million, and $9.9 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 six months ended June 30, 2025
(in thousands)Corporate and Commercial SpecialtyCommunity, Consumer and Business
Risk Management and Shared Services(a)
Consolidated Corporation
Net segment interest income (expense)$470,263 $131,367 $(15,690)$585,940 
Net intersegment interest (expense) income(197,772)269,320 (71,548)— 
Net interest income (expense)272,491 400,687 (87,238)585,940 
Noninterest income (expense)24,887 100,561 306 125,754 
Total income (expense) before provision297,378 501,248 (86,932)711,694 
Provision for credit losses39,382 12,434 (20,817)30,999 
Total income (expense) after provision257,996 488,814 (66,115)680,695 
Noninterest expense
Personnel41,475 116,512 92,903 250,890 
Technology(b)
1,432 25,947 26,267 53,646 
Occupancy(b)
33 59 27,933 28,025 
Business development and advertising2,186 1,805 10,143 14,134 
Equipment(b)
— 2,530 6,491 9,021 
Legal and professional 422 1,335 11,000 12,757 
Loan and foreclosure costs1,071 2,516 1,712 5,299 
FDIC assessment— — 20,144 20,144 
Other intangible amortization— — 4,405 4,405 
Other noninterest expense1,715 15,491 4,442 21,648 
Allocated indirect expense (income)42,620 105,174 (147,794)— 
Total noninterest expense90,954 271,369 57,646 419,971 
Net income (loss) before income taxes167,042 217,445 (123,761)260,724 
Income tax expense (benefit)31,665 45,663 (29,520)47,808 
Net income (loss)$135,377 $171,782 $(94,241)$212,916 
(a) An unusual item of a $7.0 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 $0.1 million, $5.3 million, and $20.5 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 six months ended June 30, 2024
(in thousands)Corporate and Commercial SpecialtyCommunity, Consumer and BusinessRisk Management and Shared ServicesConsolidated Corporation
Net segment interest income (expense)$485,526 $124,602 $(95,677)$514,451 
Net intersegment interest (expense) income(218,284)290,801 (72,517)— 
Net interest income (expense)267,242 415,403 (168,194)514,451 
Noninterest income23,540 95,926 10,678 130,144 
Total income (expense) before provision290,782 511,329 (157,515)644,595 
Provision for credit losses31,036 13,301 2,672 47,009 
Total income (expense) after provision259,746 498,028 (160,187)597,586 
Noninterest expense
Personnel40,877 116,728 83,371 240,976 
Technology(a)
1,187 23,066 29,109 53,362 
Occupancy(a)
— 33 26,728 26,761 
Business development and advertising1,760 1,604 10,688 14,052 
Equipment(a)
1 2,708 6,340 9,049 
Legal and professional424 609 8,068 9,101 
Loan and foreclosure costs359 2,772 640 3,771 
FDIC assessment— — 21,077 21,077 
Other intangible amortization— — 4,405 4,405 
Other noninterest expense1,604 12,098 (2,739)10,963 
Allocated indirect expense (income)39,601 104,368 (143,969)— 
Total noninterest expense85,813 263,986 43,719 393,518 
Net income (loss) before income taxes173,933 234,042 (203,906)204,068 
Income tax expense (benefit)31,893 49,149 (73,716)7,326 
Net income (loss)$142,040 $184,893 $(130,191)$196,742 
(a) A portion of total depreciation expense of $0.2 million, $9.7 million, and $39.1 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.