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Segment information
6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment information

14. Segment information

Reportable segments have been determined based upon the Company's internal profitability reporting system, which is organized by strategic business unit. Certain strategic business units have been combined for segment information reporting purposes where the nature of the products and services, the type of customer and the distribution of those products and services are similar. The reportable segments are Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking and Retail Banking.

The financial information of the Company's segments was compiled utilizing the accounting policies described in note 23 of Notes to Financial Statements in the 2022 Annual Report. 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 GAAP. As a result, the financial information of the reported segments is not necessarily comparable with similar information reported by other financial institutions. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data. As described in the 2022 Annual Report, certain lending relationships within the hospitality sector that had previously received oversight within the Commercial Banking segment were realigned to the Commercial Real Estate segment and certain expenses were reallocated from the All Other segment to various reportable segments in the fourth quarter of 2022. During 2022, the Company also realigned certain acquired operations associated with People's United primarily consisting of reclassifications of certain revenues and expenses to the Commercial Banking segment from other reportable segments. As a result, financial information for the three and six months ended June 30, 2022 has been reclassified to provide segment information on a comparable basis, as noted in the accompanying tables.

14. Segment information, continued

 

 

Three Months Ended June 30, 2022

 

 

 

Total Revenues as Previously Reported

 

 

Impact of Changes

 

 

Total Revenues as Reclassified

 

 

Net Income (Loss) as Previously Reported

 

 

Impact of Changes

 

 

Net Income (Loss) as Reclassified

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking

 

$

203,630

 

 

 

 

 

$

203,630

 

 

$

70,536

 

 

 

(2,953

)

 

$

67,583

 

Commercial Banking

 

 

343,353

 

 

 

105,086

 

 

 

448,439

 

 

 

130,431

 

 

 

31,379

 

 

 

161,810

 

Commercial Real Estate

 

 

239,610

 

 

 

6,635

 

 

 

246,245

 

 

 

121,737

 

 

 

(3,792

)

 

 

117,945

 

Discretionary Portfolio

 

 

89,412

 

 

 

(14,885

)

 

 

74,527

 

 

 

56,085

 

 

 

(11,674

)

 

 

44,411

 

Residential Mortgage Banking

 

 

113,874

 

 

 

 

 

 

113,874

 

 

 

9,347

 

 

 

(1,418

)

 

 

7,929

 

Retail Banking

 

 

593,228

 

 

 

(74,611

)

 

 

518,617

 

 

 

139,431

 

 

 

(34,862

)

 

 

104,569

 

All Other

 

 

399,710

 

 

 

(22,225

)

 

 

377,485

 

 

 

(310,045

)

 

 

23,320

 

 

 

(286,725

)

Total

 

$

1,982,817

 

 

 

 

 

$

1,982,817

 

 

$

217,522

 

 

 

 

 

$

217,522

 

 

 

 

Six Months Ended June 30, 2022

 

 

 

Total Revenues as Previously Reported

 

 

Impact of Changes

 

 

Total Revenues as Reclassified

 

 

Net Income (Loss) as Previously Reported

 

 

Impact of Changes

 

 

Net Income (Loss) as Reclassified

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking

 

$

344,976

 

 

 

 

 

$

344,976

 

 

$

111,647

 

 

 

(4,532

)

 

$

107,115

 

Commercial Banking

 

 

632,725

 

 

 

94,649

 

 

 

727,374

 

 

 

275,039

 

 

 

15,231

 

 

 

290,270

 

Commercial Real Estate

 

 

441,697

 

 

 

17,072

 

 

 

458,769

 

 

 

219,347

 

 

 

9,844

 

 

 

229,191

 

Discretionary Portfolio

 

 

154,139

 

 

 

(14,885

)

 

 

139,254

 

 

 

91,470

 

 

 

(12,374

)

 

 

79,096

 

Residential Mortgage Banking

 

 

251,318

 

 

 

 

 

 

251,318

 

 

 

38,311

 

 

 

(3,268

)

 

 

35,043

 

Retail Banking

 

 

948,376

 

 

 

(74,611

)

 

 

873,765

 

 

 

223,595

 

 

 

(39,944

)

 

 

183,651

 

All Other

 

 

654,647

 

 

 

(22,225

)

 

 

632,422

 

 

 

(379,713

)

 

 

35,043

 

 

 

(344,670

)

Total

 

$

3,427,878

 

 

 

 

 

$

3,427,878

 

 

$

579,696

 

 

 

 

 

$

579,696

 

 

14. Segment information, continued

Information about the Company's segments follows:

 

 

Three Months Ended June 30

 

 

 

2023

 

 

2022

 

 

 

Total
 Revenues(a)

 

 

Inter-
segment
Revenues

 

 

Net
Income
(Loss)

 

 

Total
 Revenues(a)

 

 

Inter-
segment
Revenues

 

 

Net
Income
(Loss)

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking

 

$

277,181

 

 

$

1,047

 

 

$

116,163

 

 

$

203,630

 

 

$

726

 

 

$

67,583

 

Commercial Banking

 

 

460,625

 

 

 

9,292

 

 

 

165,562

 

 

 

448,439

 

 

 

940

 

 

 

161,810

 

Commercial Real Estate

 

 

217,254

 

 

 

268

 

 

 

39,288

 

 

 

246,245

 

 

 

259

 

 

 

117,945

 

Discretionary Portfolio

 

 

(23,937

)

 

 

(14,809

)

 

 

(31,695

)

 

 

74,527

 

 

 

(24,103

)

 

 

44,411

 

Residential Mortgage Banking

 

 

102,556

 

 

 

20,754

 

 

 

(14,900

)

 

 

113,874

 

 

 

37,875

 

 

 

7,929

 

Retail Banking

 

 

864,566

 

 

 

(39

)

 

 

336,633

 

 

 

518,617

 

 

 

(4

)

 

 

104,569

 

All Other

 

 

704,055

 

 

 

(16,513

)

 

 

255,983

 

 

 

377,485

 

 

 

(15,693

)

 

 

(286,725

)

Total

 

$

2,602,300

 

 

$

 

 

$

867,034

 

 

$

1,982,817

 

 

$

 

 

$

217,522

 

 

 

 

 

Six Months Ended June 30

 

 

 

2023

 

 

2022

 

 

 

Total
 Revenues(a)

 

 

Inter-
segment
Revenues

 

 

Net
Income
(Loss)

 

 

Total
 Revenues(a)

 

 

Inter-
segment
Revenues

 

 

Net
Income
(Loss)

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking

 

$

550,732

 

 

$

1,924

 

 

$

229,414

 

 

$

344,976

 

 

$

1,397

 

 

$

107,115

 

Commercial Banking

 

 

967,645

 

 

 

19,518

 

 

 

385,541

 

 

 

727,374

 

 

 

1,803

 

 

 

290,270

 

Commercial Real Estate

 

 

442,973

 

 

 

557

 

 

 

120,097

 

 

 

458,769

 

 

 

438

 

 

 

229,191

 

Discretionary Portfolio

 

 

(57,333

)

 

 

(30,014

)

 

 

(72,092

)

 

 

139,254

 

 

 

(51,908

)

 

 

79,096

 

Residential Mortgage Banking

 

 

180,210

 

 

 

41,226

 

 

 

(27,254

)

 

 

251,318

 

 

 

75,339

 

 

 

35,043

 

Retail Banking

 

 

1,696,408

 

 

 

(78

)

 

 

653,227

 

 

 

873,765

 

 

 

(7

)

 

 

183,651

 

All Other

 

 

1,227,062

 

 

 

(33,133

)

 

 

279,725

 

 

 

632,422

 

 

 

(27,062

)

 

 

(344,670

)

Total

 

$

5,007,697

 

 

$

 

 

$

1,568,658

 

 

$

3,427,878

 

 

$

 

 

$

579,696

 

 

 

 

Average Total Assets

 

 

 

Six Months Ended June 30

 

 

Year Ended
December
31

 

 

 

2023

 

 

2022

 

 

2022

 

 

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

Business Banking

 

$

7,905

 

 

$

7,316

 

 

$

7,597

 

Commercial Banking (b)

 

 

49,166

 

 

 

35,696

 

 

 

40,930

 

Commercial Real Estate (b)

 

 

32,000

 

 

 

29,032

 

 

 

30,599

 

Discretionary Portfolio

 

 

50,930

 

 

 

36,292

 

 

 

42,657

 

Residential Mortgage Banking

 

 

2,723

 

 

 

5,014

 

 

 

3,986

 

Retail Banking (b)

 

 

21,322

 

 

 

19,690

 

 

 

20,312

 

All Other (b)

 

 

39,446

 

 

 

47,374

 

 

 

44,171

 

Total

 

$

203,492

 

 

$

180,414

 

 

$

190,252

 

 

(a)
Total revenues are comprised of net interest income and other income. Net interest income is the difference between taxable-equivalent interest earned on assets and interest paid on liabilities owed by a segment and a funding charge (credit) based on the Company's internal funds transfer and allocation methodology. Segments are charged a cost to fund any assets (e.g. loans) and are paid a funding credit for any funds provided (e.g. deposits). The taxable-equivalent adjustment aggregated $13,886,000 and $10,726,000 for the three-month periods ended June 30, 2023 and 2022, respectively, and $27,348,000 and $13,960,000 for the six-month periods ended June 30, 2023 and 2022, and is eliminated in "All Other" total revenues. Intersegment revenues are included in total revenues of the reportable segments. The elimination of intersegment revenues is included in the determination of "All Other" total revenues.
(b)
For the six months ended June 30, 2022, average total assets totaling (i) approximately $1.25 billion were reclassified to the Commercial Real Estate segment from the Commercial Banking segment as a result of the realignment of certain lending relationships within the hospitality sector and (ii) approximately $4.72 billion and $591 million were reclassified to the Commercial Banking segment from the Retail Banking and All Other segments, respectively, as a result of the realignment of certain acquired operations associated with People's United.