SEGMENT REPORTING

12 Months Ended

Dec. 31, 2023

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 25: SEGMENT REPORTING

In 2023, 2022, and 2021 the Company had two reportable business segments: Banking (FFB) and Wealth Management (FFA). The results of FFI and any elimination entries are included in the column labeled Other. The reportable segments are determined by products and services offered and the corporate structure. Business segment earnings before taxes are the primary measure of the segment’s performance as evaluated by management. Business segment earnings before taxes include direct revenue and expenses of the segment as well as corporate and inter-company cost allocations. Allocations of corporate expenses, such as finance and accounting, data processing and human resources, are calculated based on estimated activity or usage levels. The management accounting process measures the performance of the operating segments based on the Company’s management structure and is not necessarily comparable with similar information for other financial services companies. If the management structures and/or the allocation process changes, allocations, transfers and assignments may change. The following tables show key operating results for each of our business segments used to arrive at our consolidated totals for the years ended December 31:

			Wealth
(dollars in thousands)	Banking		Management		Other		Total
2023:
Interest income	$	573,691	$	—	$	—	$	573,691
Interest expense		364,310		—		7,076		371,386
Net interest income		209,381		—		(7,076)		202,305
Provision (reversal) for credit losses		(482)		—		—		(482)
Noninterest income		21,540		29,358		(1,547)		49,351
Noninterest expense
Goodwill impairment		215,252		—		—		215,252
Operating		210,514		22,100		4,336		236,950
(Loss) income before income taxes		(194,363)		7,258		(12,959)		(200,064)
Income tax expense (benefit)		560		2,072		(3,632)		(1,000)
Net (loss) income	$	(194,923)	$	5,186	$	(9,327)	$	(199,064)
2022:
Interest income	$	403,878	$	—	$	—	$	403,878
Interest expense		78,766		—		6,422		85,188
Net interest income		325,112		—		(6,422)		318,690
Provision for credit losses		532		—		—		532
Noninterest income		26,148		30,027		(7,941)		48,234
Noninterest expense		188,619		24,371		3,599		216,589
Income (loss) before income taxes		162,109		5,656		(17,962)		149,803
Income tax expense (benefit)		42,698		1,660		(5,067)		39,291
Net income (loss)	$	119,411	$	3,996	$	(12,895)	$	110,512
2021:
Interest income	$	247,218	$	—	$	—	$	247,218
Interest expense		13,688		—		246		13,934
Net interest income		233,530		—		(246)		233,284
Provision for credit losses		3,866		—		—		3,866
Noninterest income		41,068		29,917		(532)		70,453
Noninterest expense		121,375		23,349		3,362		148,086
Income (loss) before income taxes		149,357		6,568		(4,140)		151,785
Income tax expense (benefit)		42,144		1,231		(1,101)		42,274
Net income (loss)	$	107,213	$	5,337	$	(3,039)	$	109,511

The following tables show the financial position for each of our business segments, and of FFI which is included in the column labeled Other, and the eliminating entries used to arrive at our consolidated totals at December 31:

			Wealth
(dollars in thousands)	Banking		Management		Other		Eliminations		Total
2023:
Cash and cash equivalents	$	1,326,237	$	4,746	$	15,263	$	(19,617)	$	1,326,629
Securities AFS, net		703,226		—		—		—		703,226
Securities HTM, net		789,578		—		—		—		789,578
Loans, net		10,148,597		—		—		—		10,148,597
Accrued interest receivable		54,163		—		—		—		54,163
Premises and equipment		39,639		150		136		—		39,925
Investment in FHLB Stock		24,613		—		—		—		24,613
Deferred taxes		26,917		183		2,042		—		29,142
Real estate owned ("REO")		8,381		—		—		—		8,381
Core deposit intangibles		4,948		—		—		—		4,948
Other assets		172,305		533		1,107,666		(1,082,458)		198,046
Total assets	$	13,298,604	$	5,612	$	1,125,107	$	(1,102,075)	$	13,327,248
Deposits	$	10,708,549	$	—	$	—	$	(19,617)	$	10,688,932
Borrowings		1,409,056		—		—		—		1,409,056
Subordinated debt		—		—		173,397		—		173,397
Intercompany balances		2,604		(9,079)		6,475		—		—
Accounts payable and other liabilities		108,434		2,196		19,892		(2)		130,520
Shareholders’ equity		1,069,961		12,495		925,343		(1,082,456)		925,343
Total liabilities and equity	$	13,298,604	$	5,612	$	1,125,107	$	(1,102,075)	$	13,327,248
2022:
Cash and cash equivalents	$	656,247	$	16,757	$	24,083	$	(40,593)	$	656,494
Securities AFS, net		226,158		—		—		—		226,158
Securities HTM, net		862,544		—		—		—		862,544
Loans, net		10,692,462		—		—		—		10,692,462
Accrued interest receivable		51,359		—		—		—		51,359
Premises and equipment		35,788		216		136		—		36,140
Investment in FHLB Stock		25,358		—		—		—		25,358
Deferred taxes		19,671		78		4,449		—		24,198
Real estate owned ("REO")		6,210		—		—		—		6,210
Goodwill		215,252		—		—		—		215,252
Core deposit intangibles		6,583		—		—		—		6,583
Other assets		182,262		428		1,314,681		(1,285,950)		211,421
Total assets	$	12,979,894	$	17,479	$	1,343,349	$	(1,326,543)	$	13,014,179
Deposits	$	10,403,205	$	—	$	—	$	(40,593)	$	10,362,612
Borrowings		1,176,601		—		20,000		—		1,196,601
Subordinated debt		—		—		173,335		—		173,335
Intercompany balances		1,001		971		(1,972)		—		—
Accounts payable and other liabilities		125,254		4,392		17,608		(1)		147,253
Shareholders’ equity		1,273,833		12,116		1,134,378		(1,285,949)		1,134,378
Total liabilities and equity	$	12,979,894	$	17,479	$	1,343,349	$	(1,326,543)	$	13,014,179