SEGMENT REPORTING AND REVENUE (Tables)
|
6 Months Ended |
Jun. 30, 2023 |
Revenue from Contract with Customer [Abstract] |
|
Schedule of operating segment results |
The following tables present the Company’s operating segment results for the three months and six months ended June 30, 2023 and 2022 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other |
|
Total |
Three Months Ended June 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
66,133 |
|
$ |
63,749 |
|
$ |
22,202 |
|
$ |
152,084 |
Provision for credit losses |
|
|
6,054 |
|
|
32 |
|
|
(17) |
|
|
6,069 |
Net interest income after provision for credit losses |
|
|
60,079 |
|
|
63,717 |
|
|
22,219 |
|
|
146,015 |
Noninterest income |
|
|
8,861 |
|
|
12,287 |
|
|
3,049 |
|
|
24,197 |
Noninterest expenses |
|
|
41,236 |
|
|
56,539 |
|
|
7,886 |
|
|
105,661 |
Income before income taxes |
|
$ |
27,704 |
|
$ |
19,465 |
|
$ |
17,382 |
|
$ |
64,551 |
Three Months Ended June 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
72,930 |
|
$ |
51,037 |
|
$ |
14,800 |
|
$ |
138,767 |
Provision for credit losses |
|
|
2,757 |
|
|
775 |
|
|
27 |
|
|
3,559 |
Net interest income after provision for credit losses |
|
|
70,173 |
|
|
50,262 |
|
|
14,773 |
|
|
135,208 |
Noninterest income |
|
|
8,327 |
|
|
16,577 |
|
|
13,382 |
|
|
38,286 |
Noninterest expenses |
|
|
38,401 |
|
|
55,092 |
|
|
5,275 |
|
|
98,768 |
Income before income taxes |
|
$ |
40,099 |
|
$ |
11,747 |
|
$ |
22,880 |
|
$ |
74,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other |
|
Total |
Six Months Ended June 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
133,674 |
|
$ |
126,893 |
|
$ |
44,961 |
|
$ |
305,528 |
Provision for credit losses |
|
|
16,543 |
|
|
1,371 |
|
|
6 |
|
|
17,920 |
Net interest income after provision for credit losses |
|
|
117,131 |
|
|
125,522 |
|
|
44,955 |
|
|
287,608 |
Noninterest income |
|
|
16,275 |
|
|
24,466 |
|
|
(6,917) |
|
|
33,824 |
Noninterest expenses |
|
|
83,550 |
|
|
113,594 |
|
|
16,790 |
|
|
213,934 |
Income before income taxes |
|
$ |
49,856 |
|
$ |
36,394 |
|
$ |
21,248 |
|
$ |
107,498 |
Six Months Ended June 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
144,354 |
|
$ |
99,169 |
|
$ |
26,175 |
|
$ |
269,698 |
Provision for credit losses |
|
|
4,374 |
|
|
1,958 |
|
|
27 |
|
|
6,359 |
Net interest income after provision for credit losses |
|
|
139,980 |
|
|
97,211 |
|
|
26,148 |
|
|
263,339 |
Noninterest income |
|
|
17,514 |
|
|
33,196 |
|
|
17,729 |
|
|
68,439 |
Noninterest expenses |
|
|
78,410 |
|
|
110,426 |
|
|
15,253 |
|
|
204,089 |
Income before income taxes |
|
$ |
79,084 |
|
$ |
19,981 |
|
$ |
28,624 |
|
$ |
127,689 |
|
Schedule of operating segment results - balance sheet metrics |
The following table presents the Company’s operating segment results for key balance sheet metrics as of June 30, 2023 and December 31, 2022 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other |
|
Total |
As of June 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
LHFI, net of deferred fees and costs (1) |
|
$ |
12,078,442 |
|
$ |
3,001,369 |
|
$ |
(12,881) |
|
$ |
15,066,930 |
Goodwill |
|
|
639,180 |
|
|
286,031 |
|
|
— |
|
|
925,211 |
Deposits |
|
|
6,190,224 |
|
|
9,580,892 |
|
|
640,871 |
|
|
16,411,987 |
As of December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
LHFI, net of deferred fees and costs (1)(2) |
|
$ |
11,476,258 |
|
$ |
2,990,017 |
|
$ |
(17,133) |
|
$ |
14,449,142 |
Goodwill (3) |
|
|
639,180 |
|
|
286,031 |
|
|
— |
|
|
925,211 |
Deposits (4) |
|
|
6,128,729 |
|
|
9,724,598 |
|
|
78,350 |
|
|
15,931,677 |
(1) Corporate Other includes acquisition accounting fair value adjustments.
(2) Wholesale Banking includes a $136.6 million reallocation from Consumer Banking due to the January 1, 2023 organizational change discussed above.
(3) Wholesale Banking includes a $9.6 million reallocation from Consumer Banking due to the January 1, 2023 organizational change discussed above.
(4) Wholesale Banking includes a $258.7 million reallocation from Consumer Banking due to the January 1, 2023 organizational change discussed above.
|
Schedule of Disaggregation of Revenue |
Noninterest income disaggregated by major source for the three and six months ended June 30, 2023 and 2022, consisted of the following (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposit Service Charges (1): |
|
|
|
|
|
|
|
|
|
|
|
|
Overdraft fees |
|
$ |
4,839 |
|
$ |
5,305 |
|
$ |
9,662 |
|
$ |
10,299 |
Maintenance fees & other |
|
|
3,279 |
|
|
2,735 |
|
|
6,358 |
|
|
5,338 |
Other service charges, commissions, and fees (1) |
|
|
1,693 |
|
|
1,709 |
|
|
3,439 |
|
|
3,364 |
Interchange fees(1) |
|
|
2,459 |
|
|
2,268 |
|
|
4,784 |
|
|
4,078 |
Fiduciary and asset management fees (1): |
|
|
|
|
|
|
|
|
|
|
|
|
Trust asset management fees |
|
|
3,103 |
|
|
3,299 |
|
|
6,209 |
|
|
6,690 |
Registered advisor management fees |
|
|
— |
|
|
2,438 |
|
|
— |
|
|
5,088 |
Brokerage management fees |
|
|
1,256 |
|
|
1,202 |
|
|
2,411 |
|
|
2,416 |
Mortgage banking income |
|
|
449 |
|
|
2,200 |
|
|
1,303 |
|
|
5,317 |
Gain (loss) on sale of securities |
|
|
2 |
|
|
(2) |
|
|
(13,398) |
|
|
(2) |
Bank owned life insurance income |
|
|
2,870 |
|
|
2,716 |
|
|
5,698 |
|
|
5,413 |
Loan-related interest rate swap fees |
|
|
2,316 |
|
|
2,600 |
|
|
3,755 |
|
|
6,460 |
Other operating income (2) |
|
|
1,931 |
|
|
11,816 |
|
|
3,603 |
|
|
13,978 |
Total noninterest income |
|
$ |
24,197 |
|
$ |
38,286 |
|
$ |
33,824 |
|
$ |
68,439 |
(1) Income within scope of ASC 606, Revenue from Contracts with Customers.
(2) Includes a $9.1 million gain related to the sale of DHFB for the three and six months ended June 30, 2022.
|
Disaggregated noninterest income by segment |
The following tables present noninterest income disaggregated by reportable operating segment for the three and six months ended June 30, 2023 and 2022 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other(1)(2) |
|
Total |
Three Months Ended June 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service charges |
|
|
$ |
2,109 |
|
$ |
6,009 |
|
$ |
— |
|
$ |
8,118 |
Other service charges and fees |
|
|
|
296 |
|
|
1,397 |
|
|
— |
|
|
1,693 |
Fiduciary and asset management fees |
|
|
|
3,033 |
|
|
1,326 |
|
|
— |
|
|
4,359 |
Mortgage banking income |
|
|
|
— |
|
|
449 |
|
|
— |
|
|
449 |
Other income |
|
|
|
3,423 |
|
|
3,106 |
|
|
3,049 |
|
|
9,578 |
Total noninterest income |
|
|
$ |
8,861 |
|
$ |
12,287 |
|
$ |
3,049 |
|
$ |
24,197 |
Three Months Ended June 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service charges |
|
|
$ |
1,641 |
|
$ |
6,399 |
|
$ |
— |
|
$ |
8,040 |
Other service charges and fees |
|
|
|
395 |
|
|
1,314 |
|
|
— |
|
|
1,709 |
Fiduciary and asset management fees |
|
|
|
3,224 |
|
|
3,715 |
|
|
— |
|
|
6,939 |
Mortgage banking income |
|
|
|
— |
|
|
2,200 |
|
|
— |
|
|
2,200 |
Other income |
|
|
|
3,067 |
|
|
2,949 |
|
|
13,382 |
|
|
19,398 |
Total noninterest income |
|
|
$ |
8,327 |
|
$ |
16,577 |
|
$ |
13,382 |
|
$ |
38,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other(1)(2) |
|
Total |
Six Months Ended June 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service charges |
|
|
$ |
4,084 |
|
$ |
11,936 |
|
$ |
— |
|
$ |
16,020 |
Other service charges and fees |
|
|
|
741 |
|
|
2,698 |
|
|
— |
|
|
3,439 |
Fiduciary and asset management fees |
|
|
|
6,067 |
|
|
2,553 |
|
|
— |
|
|
8,620 |
Mortgage banking income |
|
|
|
— |
|
|
1,303 |
|
|
— |
|
|
1,303 |
Other income |
|
|
|
5,383 |
|
|
5,976 |
|
|
(6,917) |
|
|
4,442 |
Total noninterest income |
|
|
$ |
16,275 |
|
$ |
24,466 |
|
$ |
(6,917) |
|
$ |
33,824 |
Six Months Ended June 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service charges |
|
|
$ |
3,207 |
|
$ |
12,430 |
|
$ |
— |
|
$ |
15,637 |
Other service charges and fees |
|
|
|
830 |
|
|
2,534 |
|
|
— |
|
|
3,364 |
Fiduciary and asset management fees |
|
|
|
6,540 |
|
|
7,654 |
|
|
— |
|
|
14,194 |
Mortgage banking income |
|
|
|
— |
|
|
5,317 |
|
|
— |
|
|
5,317 |
Other income |
|
|
|
6,937 |
|
|
5,261 |
|
|
17,729 |
|
|
29,927 |
Total noninterest income |
|
|
$ |
17,514 |
|
$ |
33,196 |
|
$ |
17,729 |
|
$ |
68,439 |
(1) For the three months and six months ended June 30, 2022, other income primarily includes a $9.1 million gain related to the sale of DHFB and income from BOLI.
(2) For the three months ended June 30, 2023, other income primarily consists of income from BOLI. For the six months ended June 30, 2023, other income primarily includes $13.4 million of losses incurred on the sale of AFS securities and income from BOLI.
|