Segment Information |
Segment Information The Company reports two segments: Core Banking and Mortgage Banking. The Core Banking segment includes all lines of business, except Mortgage Banking, including commercial, retail, and private banking, as well as the operations, technology, and administrative functions of the Bank and Holding Company. The Mortgage Banking segment includes the revenue earned from the production and sale of residential real estate loans, the servicing income from the serviced loan portfolio, the quarterly changes to the MSR, and the specific expenses that are related to mortgage banking activities including variable commission expenses. Revenue and related expenses related to residential real estate loans held for investment are included in the Core Banking segment as portfolio loans are an anchor product for the consumer and wealth channels and are originated through a variety of channels throughout the Company. Management periodically updates the allocation methods and assumptions within the current segment structure. Summarized financial information concerning the Company's reportable segments and the reconciliation to the consolidated financial results is shown in the following tables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2022 | | Three Months Ended June 30, 2021 | (in thousands) | Core Banking | | Mortgage Banking | | Consolidated | | Core Banking | | Mortgage Banking | | Consolidated | Net interest income | $ | 247,009 | | | $ | 1,161 | | | $ | 248,170 | | | $ | 226,915 | | | $ | 2,848 | | | $ | 229,763 | | Provision (recapture) for credit losses | 18,692 | | | — | | | 18,692 | | | (22,996) | | | — | | | (22,996) | | Non-interest income | | | | | | | | | | | | | Residential mortgage banking revenue: | | | | | | | | | | | | | Origination and sale | — | | | 15,101 | | | 15,101 | | | — | | | 41,367 | | | 41,367 | | | Servicing | — | | | 9,505 | | | 9,505 | | | — | | | 9,120 | | | 9,120 | | | Change in fair value of MSR asset: | | | | | | | | | | | | | Changes due to collection/realization of expected cash flows over time | — | | | (4,961) | | | (4,961) | | | — | | | (4,366) | | | (4,366) | | | Changes due to valuation inputs or assumptions | — | | | 10,899 | | | 10,899 | | | — | | | (1,678) | | | (1,678) | | | | | | | | | | | | | | | | (Loss) gain on equity securities, net | (2,075) | | | — | | | (2,075) | | | 4 | | | — | | | 4 | | | Gain (loss) on swap derivatives, net | 7,337 | | | — | | | 7,337 | | | (4,481) | | | — | | | (4,481) | | | Change in fair value of certain loans held for investment | (15,210) | | | — | | | (15,210) | | | 2,782 | | | — | | | 2,782 | | | Non-interest income (excluding above items) | 34,461 | | | 178 | | | 34,639 | | | 48,151 | | | 176 | | | 48,327 | | | Total non-interest income | 24,513 | | | 30,722 | | | 55,235 | | | 46,456 | | | 44,619 | | | 91,075 | | Non-interest expense | | | | | | | | | | | | | Merger related expenses | 2,672 | | | — | | | 2,672 | | | — | | | — | | | — | | | Exit and disposal costs | 442 | | | — | | | 442 | | | 4,728 | | | — | | | 4,728 | | | Non-interest expense (excluding above items) | 148,946 | | | 27,514 | | | 176,460 | | | 146,877 | | | 37,795 | | | 184,672 | | | Allocated expenses, net (1) | 3,702 | | | (3,702) | | | — | | | 970 | | | (970) | | | — | | | Total non-interest expense | 155,762 | | | 23,812 | | | 179,574 | | | 152,575 | | | 36,825 | | | 189,400 | | Income before income taxes | 97,068 | | | 8,071 | | | 105,139 | | | 143,792 | | | 10,642 | | | 154,434 | | Provision for income taxes | 24,530 | | | 2,018 | | | 26,548 | | | 35,630 | | | 2,661 | | | 38,291 | | Net income | $ | 72,538 | | | $ | 6,053 | | | $ | 78,591 | | | $ | 108,162 | | | $ | 7,981 | | | $ | 116,143 | | (1) Represents the internal charges for centrally provided support services and other corporate overhead to the Mortgage Banking segment, partially offset by allocations from the Mortgage Banking segment to Core Banking for new portfolio loan originations and portfolio servicing costs. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2022 | | Six Months Ended June 30, 2021 | (in thousands) | Core Banking | | Mortgage Banking | | Consolidated | | Core Banking | | Mortgage Banking | | Consolidated | Net interest income | $ | 474,096 | | | $ | 2,837 | | | $ | 476,933 | | | $ | 444,489 | | | $ | 6,705 | | | $ | 451,194 | | Provision (recapture) for credit losses | 23,496 | | | — | | | 23,496 | | | (22,996) | | | — | | | (22,996) | | Non-interest income | | | | | | | | | | | | | Residential mortgage banking revenue: | | | | | | | | | | | | | Origination and sale | — | | | 31,945 | | | 31,945 | | | — | | | 103,872 | | | 103,872 | | | Servicing | — | | | 18,645 | | | 18,645 | | | — | | | 18,207 | | | 18,207 | | | Change in fair value of MSR asset: | | | | | | | | | | | | | Changes due to collection/realization of expected cash flows over time | — | | | (10,308) | | | (10,308) | | | — | | | (8,911) | | | (8,911) | | | Changes due to valuation inputs or assumptions | — | | | 51,048 | | | 51,048 | | | — | | | (3,692) | | | (3,692) | | | Gain on sale of debt securities, net | 2 | | | — | | | 2 | | | 4 | | | — | | | 4 | | | Loss on equity securities, net | (4,736) | | | — | | | (4,736) | | | (702) | | | — | | | (702) | | | Gain on swap derivatives, net | 14,384 | | | — | | | 14,384 | | | 7,269 | | | — | | | 7,269 | | | Change in fair value of certain loans held for investment | (36,259) | | | — | | | (36,259) | | | 2,272 | | | — | | | 2,272 | | | Non-interest income (excluding above items) | 70,111 | | | 372 | | | 70,483 | | | 81,064 | | | 492 | | | 81,556 | | | Total non-interest income | 43,502 | | | 91,702 | | | 135,204 | | | 89,907 | | | 109,968 | | | 199,875 | | Non-interest expense | | | | | | | | | | | | | Merger related expenses | 4,950 | | | — | | | 4,950 | | | — | | | — | | | — | | | Exit and disposal costs | 3,475 | | | — | | | 3,475 | | | 5,928 | | | — | | | 5,928 | | | Non-interest expense (excluding above items) | 297,369 | | | 56,210 | | | 353,579 | | | 292,038 | | | 79,026 | | | 371,064 | | | Allocated expenses, net (1) | 7,437 | | | (7,437) | | | — | | | 180 | | | (180) | | | — | | | Total non-interest expense | 313,231 | | | 48,773 | | | 362,004 | | | 298,146 | | | 78,846 | | | 376,992 | | Income before income taxes | 180,871 | | | 45,766 | | | 226,637 | | | 259,246 | | | 37,827 | | | 297,073 | | Provision for income taxes | 45,447 | | | 11,442 | | | 56,889 | | | 63,736 | | | 9,457 | | | 73,193 | | Net income | $ | 135,424 | | | $ | 34,324 | | | $ | 169,748 | | | $ | 195,510 | | | $ | 28,370 | | | $ | 223,880 | | (1) Represents the internal charges for centrally provided support services and other corporate overhead to the Mortgage Banking segment, offset by allocations from the Mortgage Banking segment to Core Banking for new portfolio loan originations and portfolio servicing costs. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2022 | | December 31, 2021 | (in thousands) | Core Banking | | Mortgage Banking | | Consolidated | | Core Banking | | Mortgage Banking | | Consolidated | Total assets | $ | 29,721,590 | | | $ | 414,104 | | | $ | 30,135,694 | | | $ | 30,155,058 | | | $ | 485,878 | | | $ | 30,640,936 | | Loans held for sale | $ | — | | | $ | 228,889 | | | $ | 228,889 | | | $ | — | | | $ | 353,105 | | | $ | 353,105 | | Total loans and leases | $ | 24,432,678 | | | $ | — | | | $ | 24,432,678 | | | $ | 22,553,180 | | | $ | — | | | $ | 22,553,180 | | Total deposits | $ | 25,925,294 | | | $ | 207,129 | | | $ | 26,132,423 | | | $ | 26,370,568 | | | $ | 224,117 | | | $ | 26,594,685 | |
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