Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING AND REVENUE (Tables)

v3.23.3
SEGMENT REPORTING AND REVENUE (Tables)
9 Months Ended
Sep. 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 nine months ended September 30, 2023 and 2022 (dollars in thousands):

Wholesale Banking

Consumer Banking

Corporate Other (1)

Total

Three Months Ended September 30, 2023

Net interest income

$

68,049

$

63,912

$

19,980

$

151,941

Provision for credit losses

 

9,310

(4,319)

4,991

Net interest income after provision for credit losses

 

58,739

68,231

19,980

146,950

Noninterest income

 

9,468

13,722

3,904

27,094

Noninterest expenses

 

40,039

54,994

13,475

108,508

Income before income taxes

$

28,168

$

26,959

$

10,409

$

65,536

Three Months Ended September 30, 2022 (2)

Net interest income

$

77,625

$

58,749

$

14,341

$

150,715

Provision for credit losses

 

8,470

(2,058)

6,412

Net interest income after provision for credit losses

 

69,155

60,807

14,341

144,303

Noninterest income

 

8,453

11,939

5,192

25,584

Noninterest expenses

 

40,164

54,740

5,019

99,923

Income before income taxes

$

37,444

$

18,006

$

14,514

$

69,964

Wholesale Banking

Consumer Banking

Corporate Other (1)

Total

Nine Months Ended September 30, 2023

Net interest income

$

201,722

$

190,806

$

64,941

$

457,469

Provision for credit losses

 

25,853

(2,947)

5

22,911

Net interest income after provision for credit losses

 

175,869

193,753

64,936

434,558

Noninterest income

 

25,743

38,188

(3,013)

60,918

Noninterest expenses

 

123,207

168,971

30,264

322,442

Income before income taxes

$

78,405

$

62,970

$

31,659

$

173,034

Nine Months Ended September 30, 2022 (2)

Net interest income

$

221,979

$

157,918

$

40,516

$

420,413

Provision for credit losses

 

12,844

(100)

27

12,771

Net interest income after provision for credit losses

 

209,135

158,018

40,489

407,642

Noninterest income

 

25,967

45,135

22,921

94,023

Noninterest expenses

 

118,216

165,523

20,273

304,012

Income before income taxes

$

116,886

$

37,630

$

43,137

$

197,653

(1) For the three and nine months ended September 30, 2023, noninterest expenses include $8.7 million ($8.7 million included within other expenses and ($67,000) included within salaries and benefits) and $12.6 million ($9.8 million included within other expenses and $2.8 million included within salaries and benefits), respectively, in expenses associated with strategic cost saving initiatives, principally composed of severance costs related to headcount reductions, costs related to modifying certain third-party vendor contracts, and charges for exiting certain leases.

(2) As discussed above, the segment operating results for the three and nine months ended September 30, 2022 include a reallocation from Consumer Banking to Wholesale Banking.

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 September 30, 2023 and December 31, 2022 (dollars in thousands):

Wholesale Banking

Consumer Banking

Corporate Other

Total

As of September 30, 2023

LHFI, net of deferred fees and costs (1)

$

12,343,799

$

2,953,367

$

(13,546)

$

15,283,620

Goodwill

639,180

286,031

925,211

Deposits

6,537,472

9,726,079

522,954

16,786,505

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 nine months ended September 30, 2023 and 2022, consisted of the following (dollars in thousands):

    

Three Months Ended

 

Nine Months Ended

September 30, 

September 30, 

 

September 30, 

September 30, 

2023

2022

 

2023

2022

Noninterest income:

 

  

 

  

  

 

  

Deposit Service Charges (1):

 

  

 

  

  

 

  

Overdraft fees

$

5,210

$

3,831

$

14,873

$

14,130

Maintenance fees & other

 

3,347

 

2,953

 

9,704

 

8,291

Other service charges, commissions, and fees (1)

 

2,632

 

1,770

 

6,071

 

5,134

Interchange fees(1)

 

2,314

 

2,461

 

7,098

 

6,539

Fiduciary and asset management fees (1):

 

 

 

 

Trust asset management fees

 

3,120

 

3,035

 

9,329

 

9,726

Registered advisor management fees

 

 

 

 

5,088

Brokerage management fees

 

1,429

 

1,099

 

3,840

 

3,515

Mortgage banking income

 

666

 

1,390

 

1,969

 

6,707

Loss on sale of securities

(27,594)

(40,992)

(2)

Bank owned life insurance income

 

2,973

 

3,445

 

8,671

 

8,858

Loan-related interest rate swap fees

 

2,695

 

2,050

 

6,450

 

8,510

Other operating income (2)

 

30,302

 

3,550

 

33,905

 

17,527

Total noninterest income

$

27,094

$

25,584

$

60,918

$

94,023

(1) Income within scope of ASC 606, Revenue from Contracts with Customers.

(2) Includes a $27.7 million gain related to the sale-leaseback transaction for the three and nine months ended September 30, 2023, and a $9.1 million gain related to the sale of DHFB for the nine months ended September 30, 2022.

Disaggregated noninterest income by segment

The following tables present noninterest income disaggregated by reportable operating segment for the three and nine months ended September 30, 2023 and 2022 (dollars in thousands):

Wholesale Banking

Consumer Banking

Corporate Other (1)(2)

Total

Three Months Ended September 30, 2023

Noninterest income:

 

  

 

  

 

  

 

  

Deposit service charges

$

2,184

$

6,373

$

$

8,557

Other service charges and fees

399

2,233

2,632

Fiduciary and asset management fees

3,050

1,499

4,549

Mortgage banking income

666

666

Other income

3,835

2,951

3,904

10,690

Total noninterest income

$

9,468

$

13,722

$

3,904

$

27,094

Three Months Ended September 30, 2022 (3)

Noninterest income:

 

  

 

  

 

  

 

  

Deposit service charges

$

1,783

$

5,001

$

$

6,784

Other service charges and fees

513

1,257

1,770

Fiduciary and asset management fees

2,960

1,174

4,134

Mortgage banking income

1,390

1,390

Other income

3,197

3,117

5,192

11,506

Total noninterest income

$

8,453

$

11,939

$

5,192

$

25,584

Wholesale Banking

Consumer Banking

Corporate Other (1)(2)

Total

Nine Months Ended September 30, 2023

Noninterest income:

 

  

 

  

 

  

 

  

Deposit service charges

$

6,268

$

18,309

$

$

24,577

Other service charges and fees

1,140

4,931

6,071

Fiduciary and asset management fees

9,118

4,051

13,169

Mortgage banking income

1,969

1,969

Other income

9,217

8,928

(3,013)

15,132

Total noninterest income

$

25,743

$

38,188

$

(3,013)

$

60,918

Nine Months Ended September 30, 2022 (3)

Noninterest income:

 

  

 

  

 

  

 

  

Deposit service charges

$

4,990

$

17,431

$

$

22,421

Other service charges and fees

1,342

3,792

5,134

Fiduciary and asset management fees

9,501

8,828

18,329

Mortgage banking income

6,707

6,707

Other income

10,134

8,377

22,921

41,432

Total noninterest income

$

25,967

$

45,135

$

22,921

$

94,023

(1) For the three and nine months ended September 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 and nine months ended September 30, 2023, other income primarily includes a $27.7 million gain related to the sale-leaseback transaction, losses incurred on the sale of AFS securities ($27.6 million and $41.0 million, respectively), and income from BOLI.

(3) As discussed above, noninterest income for the three and nine months ended September 30, 2022 includes a reallocation from Consumer Banking to Wholesale Banking.