Segment information

9 Months Ended

Sep. 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. Since acquisition in 2022, the Company also realigned certain operations associated with People's United requiring reclassifications of certain revenues and expenses among the reportable segments. As a result, financial information for the three and nine months ended September 30, 2022 has been reclassified to provide segment information on a comparable basis, as noted in the accompanying tables.

	Three Months Ended September 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	$	241,629		—		$	241,629	$	94,094			(1,476	)	$	92,618
Commercial Banking		510,549		(1,173	)		509,376		214,063			(2,838	)		211,225
Commercial Real Estate		234,479		12,635			247,114		94,937			15,097			110,034
Discretionary Portfolio		36,622		(24,981	)		11,641		11,813			(18,074	)		(6,261	)
Residential Mortgage Banking		95,091		—			95,091		(3,283	)		1,173			(2,110	)
Retail Banking		650,229		(2	)		650,227		181,639			1,155			182,794
All Other		473,171		13,521			486,692		53,333			4,963			58,296
Total	$	2,241,770		—		$	2,241,770	$	646,596			—		$	646,596

	Nine Months Ended September 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	$	586,605		—		$	586,605	$	205,741			(6,008	)	$	199,733
Commercial Banking		1,239,300		(2,550	)		1,236,750		521,749			(20,254	)		501,495
Commercial Real Estate		676,176		29,707			705,883		314,284			24,941			339,225
Discretionary Portfolio		190,761		(39,866	)		150,895		103,283			(30,448	)		72,835
Residential Mortgage Banking		346,409		—			346,409		35,028			(2,095	)		32,933
Retail Banking		1,523,992		—			1,523,992		379,688			(13,243	)		366,445
All Other		1,106,405		12,709			1,119,114		(333,481	)		47,107			(286,374	)
Total	$	5,669,648		—		$	5,669,648	$	1,226,292			—		$	1,226,292

14. Segment information, continued

Information about the Company's segments follows:

	Three Months Ended September 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	$	291,839		$	980		$	117,290		$	241,629	$	663		$	92,618
Commercial Banking		453,326			8,224			167,714			509,376		802			211,225
Commercial Real Estate		231,303			188			72,442			247,114		249			110,034
Discretionary Portfolio		(20,672	)		(14,110	)		(21,586	)		11,641		(23,044	)		(6,261	)
Residential Mortgage Banking		100,444			19,373			(14,422	)		95,091		35,647			(2,110	)
Retail Banking		876,002			(35	)		342,700			650,227		(5	)		182,794
All Other		402,727			(14,620	)		25,803			486,692		(14,312	)		58,296
Total	$	2,334,969		$	—		$	689,941		$	2,241,770	$	—		$	646,596

	Nine Months Ended September 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	$	842,571		$	2,904		$	346,704		$	586,605	$	2,060		$	199,733
Commercial Banking		1,420,971			27,742			553,255			1,236,750		2,605			501,495
Commercial Real Estate		674,276			745			192,539			705,883		687			339,225
Discretionary Portfolio		(78,005	)		(44,124	)		(93,678	)		150,895		(74,952	)		72,835
Residential Mortgage Banking		280,654			60,599			(41,676	)		346,409		110,986			32,933
Retail Banking		2,572,410			(113	)		995,927			1,523,992		(12	)		366,445
All Other		1,629,789			(47,753	)		305,528			1,119,114		(41,374	)		(286,374	)
Total	$	7,342,666		$	—		$	2,258,599		$	5,669,648	$	—		$	1,226,292

	Average Total Assets
	Nine Months Ended September 30				Year Ended December 31
	2023		2022		2022
	(In millions)
Business Banking	$	7,968	$	7,515	$	7,597
Commercial Banking (b)		49,373		39,293		40,930
Commercial Real Estate (b)		31,878		29,982		30,599
Discretionary Portfolio		50,900		40,987		42,657
Residential Mortgage Banking		2,746		4,370		3,986
Retail Banking		21,261		20,063		20,312
All Other		40,140		45,185		44,171
Total	$	204,266	$	187,395	$	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 $14.3 million and $11.8 million for the three-month periods ended September 30, 2023 and 2022, respectively, and $41.7 million and $25.8 million for the nine-month periods ended September 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 nine months ended September 30, 2022, average total assets totaling approximately $1.17 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.