Segments

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segments

SegmentsThe Company segregates financial information for use in assessing its performance and allocating resources among three operating segments: Consumer, Commercial and Wealth. The Consumer segment consists of various consumer loan and deposit products offered through its retail branch network of approximately 150 locations.  This segment also includes indirect and other consumer loan financing businesses, along with debit and credit card loan and fee businesses.  Residential mortgage origination, sales and servicing functions are included in this Consumer segment, but residential mortgage loans retained by the Company are not considered part of this segment and are instead included in the Other/Elimination column.  The Commercial segment provides corporate lending (including the Small Business Banking product line within the branch network), leasing, and international services, along with business and governmental deposit products and commercial cash management services.  This segment also includes both merchant and commercial bank card products as well as the Capital Markets Group, which sells fixed income securities and provides securities safekeeping and accounting services to its business and correspondent bank customers.  The Wealth segment provides traditional trust and estate planning, advisory and discretionary investment management, and brokerage services.  This segment also provides various loan and deposit related services to its private banking customers.

The following table presents selected financial information by segment and reconciliations of combined segment totals to consolidated totals. There were no material intersegment revenues between the three segments. Management periodically makes changes to methods of assigning costs and income to its business segments to better reflect operating results. If appropriate, these changes are reflected in prior year information presented below.

(In thousands)	Consumer		Commercial		Wealth		Segment Totals		Other/Elimination		Consolidated Totals
Three Months Ended September 30, 2022
Net interest income	$	86,232	$	114,087	$	18,637	$	218,956	$	27,417	$	246,373
Provision for credit losses	(4,305)		(506)		5		(4,806)		(10,484)		(15,290)
Non-interest income	30,264		57,115		53,862		141,241		(2,727)		138,514
Investment securities gains, net	—		—		—		—		3,410		3,410
Non-interest expense	(76,832)		(91,372)		(36,194)		(204,398)		(8,486)		(212,884)
Income before income taxes	$	35,359	$	79,324	$	36,310	$	150,993	$	9,130	$	160,123
Nine Months Ended September 30, 2022
Net interest income	$	249,761	$	333,263	$	56,731	$	639,755	$	47,789	$	687,544
Provision for credit losses	(12,727)		(651)		2		(13,376)		782		(12,594)
Non-interest income	89,542		167,581		161,051		418,174		(8,464)		409,710
Investment securities gains, net	—		—		—		—		11,602		11,602
Non-interest expense	(225,232)		(272,224)		(108,967)		(606,423)		(25,614)		(632,037)
Income before income taxes	$	101,344	$	227,969	$	108,817	$	438,130	$	26,095	$	464,225
Three Months Ended September 30, 2021
Net interest income	$	80,411	$	115,529	$	18,075	$	214,015	$	22	$	214,037
Provision for loan losses	(3,557)		(69)		9		(3,617)		11,002		7,385
Non-interest income	35,758		52,092		55,241		143,091		(5,585)		137,506
Investment securities gains, net	—		—		—		—		13,108		13,108
Non-interest expense	(75,996)		(84,601)		(34,285)		(194,882)		(16,738)		(211,620)
Income before income taxes	$	36,616	$	82,951	$	39,040	$	158,607	$	1,809	$	160,416
Nine Months Ended September 30, 2021
Net interest income	$	239,157	$	340,279	$	53,186	$	632,622	$	(4,855)	$	627,767
Provision for credit losses	(19,122)		4,856		10		(14,256)		73,528		59,272
Non-interest income	110,911		155,079		158,731		424,721		(12,027)		412,694
Investment securities gains, net	—		—		—		—		39,765		39,765
Non-interest expense	(220,280)		(246,501)		(101,377)		(568,158)		(34,161)		(602,319)
Income before income taxes	$	110,666	$	253,713	$	110,550	$	474,929	$	62,250	$	537,179

The information presented above was derived from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. This information is based on internal management accounting procedures and methods, which have been developed to reflect the underlying economics of the businesses. The methodologies are applied in connection with funds transfer pricing and assignment of overhead costs among segments. Funds transfer pricing was used in the determination of net interest income by assigning a standard cost (credit) for funds used (provided by) assets and liabilities based on their maturity, prepayment and/or repricing characteristics.

The segment activity, as shown above, includes both direct and allocated items. Amounts in the “Other/Elimination” column include activity not related to the segments, such as that relating to administrative functions, the investment securities portfolio, and the effect of certain expense allocations to the segments. The provision for credit losses in this category contains the difference between net loan charge-offs assigned directly to the segments and the recorded provision for credit loss expense. Included in this category’s net interest income are earnings of the investment portfolio, which are not allocated to a segment.

The performance measurement of the operating segments is based on the management structure of the Company and is not necessarily comparable with similar information for any other financial institution. The information is also not necessarily indicative of the segments' financial condition and results of operations if they were independent entities.