XML 39 R22.htm IDEA: XBRL DOCUMENT v3.24.0.1
Segments
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segments Segments
The 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 140 locations. This segment also includes indirect and other consumer loan financing businesses, along with debit and credit card loan and fee businesses. In order to reflect a change in the Company's management of its portfolio of residential mortgage loans that it retains, the Company began including those loans in the Consumer segment on January 1, 2023. These loans had previously been included in the Other/Elimination column. As a result of this change, loans of approximately $1.9 billion were reclassified from the Other/Elimination column into the Consumer segment and prior periods presented below were restated to also reflect this change.

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 Company’s business line reporting system derives segment information 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. These 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. A standard cost for funds used is applied to assets, and a credit for funds provided is applied to liabilities based on their maturity, prepayment and/or repricing characteristics. Income and expense that directly relate to segment operations are recorded in the segment when incurred. Expenses that indirectly support the segments are allocated based on the most appropriate method available.

The Company uses a funds transfer pricing method to value funds used (e.g., loans, fixed assets, and cash) and funds provided (e.g., deposits, borrowings, and equity) by the business segments and their components. This process assigns a specific value to each new source or use of funds with a maturity, based on current swap rates, thus determining an interest spread at the time of the transaction. Non-maturity assets and liabilities are valued using weighted average pools. The funds transfer pricing process attempts to remove interest rate risk from valuation, allowing management to compare profitability under various rate environments.

The following tables present 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.

Segment Income Statement Data
(In thousands)
Consumer
Commercial
Wealth
Segment Totals
Other/Elimination
Consolidated Totals
Year ended December 31, 2023:
Net interest income
$413,856 $482,389 $73,251 $969,496 $28,633 $998,129 
Provision for credit losses
(27,459)(3,513)(28)(31,000)(4,451)(35,451)
Non-interest income
99,910 246,183 218,241 564,334 8,711 573,045 
Investment securities gains, net
— — — — 14,985 14,985 
Non-interest expense
(326,838)(391,980)(157,679)(876,497)(54,485)(930,982)
Income before income taxes
$159,469 $333,079 $133,785 $626,333 $(6,607)$619,726 
Year ended December 31, 2022:
Net interest income
$366,749 $452,686 $74,416 $893,851 $48,334 $942,185 
Provision for loan losses
(17,832)(1,196)(8)(19,036)(9,035)(28,071)
Non-interest income
106,538 224,890 213,388 544,816 1,719 546,535 
Investment securities gains, net
— — — — 20,506 20,506 
Non-interest expense
(308,899)(365,276)(144,914)(819,089)(29,688)(848,777)
Income before income taxes
$146,556 $311,104 $142,882 $600,542 $31,836 $632,378 
Year ended December 31, 2021:
Net interest income
$348,565 $453,692 $71,522 $873,779 $(38,355)$835,424 
Provision for loan losses
(23,224)4,845 (52)(18,431)84,757 66,326 
Non-interest income
126,218 211,048 213,617 550,883 9,510 560,393 
Investment securities gains, net
— — — — 30,059 30,059 
Non-interest expense
(299,998)(329,313)(136,356)(765,667)(40,234)(805,901)
Income before income taxes
$151,561 $340,272 $148,731 $640,564 $45,737 $686,301 

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. Additionally, in 2023, interest expense on the Company's brokered deposits, which matured in the fourth quarter of 2023, is included in this column, as the Company's brokered deposits were not allocated to a segment.
Segment Balance Sheet Data
(In thousands)ConsumerCommercialWealthSegment TotalsOther/EliminationConsolidated Totals
Average balances for 2023:
Assets
$3,984,071 $11,351,223 $1,892,958 $17,228,252 $14,712,363 $31,940,615 
Loans, including held for sale
3,832,483 11,061,461 1,878,440 16,772,384 10,458 16,782,842 
Goodwill and other intangible assets
81,655 72,066 746154,467 3,600 158,067 
Deposits
12,243,033 10,375,075 2,377,397 24,995,505 312,876 25,308,381 
Average balances for 2022:
Assets
$3,853,875 $10,239,825 $1,838,023 $15,931,723 $17,673,594 $33,605,317 
Loans, including held for sale
3,705,110 10,021,057 1,827,283 15,553,450 16,291 15,569,741 
Goodwill and other intangible assets
82,566 67,727 746 151,039 3,600 154,639 
Deposits
13,417,312 11,941,396 2,804,781 28,163,489 (62,792)28,100,697 

The above segment balances include only those items directly associated with the segment. The “Other/Elimination” column includes unallocated bank balances not associated with a segment (such as investment securities, federal funds sold and brokered deposits), balances relating to certain other administrative and corporate functions, and eliminations between segment and non-segment balances. This column also includes the resulting effect of allocating such items as float, deposit reserve and capital for the purpose of computing the cost or credit for funds used/provided.

The Company’s reportable segments are strategic lines of business that offer different products and services. They are managed separately because each line services a specific customer need, requiring different performance measurement analyses and marketing strategies. The performance measurement of the 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.