Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING AND REVENUE

v3.24.2.u1
SEGMENT REPORTING AND REVENUE
6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
SEGMENT REPORTING AND REVENUE

14. SEGMENT REPORTING AND REVENUE

Operating Segments

The Company has two reportable operating segments, Wholesale Banking and Consumer Banking, with corporate support functions and intercompany eliminations being presented within Corporate Other.

Segment Results

The following tables present the Company’s operating segment results for the three and six months ended June 30, (dollars in thousands):

Three Months Ended:

Wholesale Banking

Consumer Banking

Corporate Other

Total

2024

Net interest income

$

94,948

$

76,009

$

13,577

$

184,534

Provision for credit losses

 

20,221

1,539

(9)

21,751

Net interest income after provision for credit losses

 

74,727

74,470

13,586

162,783

Noninterest income

 

10,777

15,254

(2,219)

23,812

Noninterest expenses

 

48,974

64,575

36,456

150,005

Income before income taxes

$

36,530

$

25,149

$

(25,089)

$

36,590

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

 

41,045

56,730

7,886

105,661

Income before income taxes

$

27,895

$

19,274

$

17,382

$

64,551

Six Months Ended:

Wholesale Banking

Consumer Banking

Corporate Other

Total

2024

Net interest income

$

175,822

$

145,246

$

11,290

$

332,358

Provision for credit losses

 

25,587

4,411

(9)

29,989

Net interest income after provision for credit losses

 

150,235

140,835

11,299

302,369

Noninterest income

 

19,140

27,869

2,356

49,365

Noninterest expenses

 

93,273

120,110

41,896

255,279

Income before income taxes

$

76,102

$

48,594

$

(28,241)

$

96,455

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

 

83,168

113,976

16,790

213,934

Income before income taxes

$

50,238

$

36,012

$

21,248

$

107,498

The following table presents the Company’s operating segment results for key balance sheet metrics as of the periods ended (dollars in thousands):

Wholesale Banking

Consumer Banking

Corporate Other

Total

June 30, 2024

LHFI, net of deferred fees and costs (1)

$

15,368,668

$

3,133,740

$

(155,218)

$

18,347,190

Goodwill (2)

845,239

362,245

1,207,484

Deposits

7,164,846

11,429,244

1,406,787

20,000,877

December 31, 2023

LHFI, net of deferred fees and costs (1)

$

12,688,833

$

2,958,811

$

(12,601)

$

15,635,043

Goodwill

639,180

286,031

925,211

Deposits

6,403,432

9,816,562

598,135

16,818,129

(1) Corporate Other includes acquisition accounting fair value adjustments.

(2) Wholesale Banking and Consumer Banking includes $206.1 million and $76.2 million, respectively, related to the American National acquisition. Refer to Note 2 “Acquisitions” and Note 5 “Goodwill and Intangible Assets” for more information.

Revenue

Noninterest income disaggregated by major source for the three and six months ended June 30, consisted of the following (dollars in thousands):

    

Three Months Ended

 

Six Months Ended

2024

2023

 

2024

2023

Noninterest income:

 

  

 

  

  

 

  

Service charges on deposit accounts (1):

 

  

 

  

  

 

  

Overdraft fees

$

5,101

$

4,839

$

9,849

$

9,662

Maintenance fees & other

 

3,985

 

3,279

 

7,806

 

6,358

Other service charges, commissions, and fees (1)

 

1,967

 

1,693

 

3,698

 

3,439

Interchange fees(1)

 

3,126

 

2,459

 

5,420

 

4,784

Fiduciary and asset management fees (1):

 

 

 

 

Trust asset management fees

 

3,779

 

3,103

 

7,136

 

6,209

Registered advisor management fees

 

7

 

 

7

 

Brokerage management fees

 

3,121

 

1,256

 

4,602

 

2,411

Mortgage banking income

 

1,193

 

449

 

2,060

 

1,303

(Loss) gain on sale of securities

(6,516)

2

(6,513)

(13,398)

Bank owned life insurance income

 

3,791

 

2,870

 

7,037

 

5,698

Loan-related interest rate swap fees

 

1,634

 

2,316

 

2,850

 

3,755

Other operating income

 

2,624

 

1,931

 

5,413

 

3,603

Total noninterest income

$

23,812

$

24,197

$

49,365

$

33,824

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

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

Three Months Ended:

Wholesale Banking

Consumer Banking

Corporate
Other (1)(2)

Total

2024

Noninterest income:

 

  

 

  

 

  

 

  

Service charges on deposit accounts

$

2,735

$

6,351

$

$

9,086

Other service charges, commissions and fees

416

1,568

(17)

1,967

Fiduciary and asset management fees

5,082

1,825

6,907

Mortgage banking income

1,193

1,193

Other income

2,544

4,317

(2,202)

4,659

Total noninterest income

$

10,777

$

15,254

$

(2,219)

$

23,812

2023

Noninterest income:

 

  

 

  

 

  

 

  

Service charges on deposit accounts

$

2,109

$

6,009

$

$

8,118

Other service charges, commissions 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

Six Months Ended:

Wholesale Banking

Consumer Banking

Corporate
Other (1)(2)

Total

2024

Noninterest income:

 

  

 

  

 

  

 

  

Service charges on deposit accounts

$

5,346

$

12,309

$

$

17,655

Other service charges, commissions and fees

812

2,903

(17)

3,698

Fiduciary and asset management fees

8,368

3,377

11,745

Mortgage banking income

2,060

2,060

Other income

4,614

7,220

2,373

14,207

Total noninterest income

$

19,140

$

27,869

$

2,356

$

49,365

2023

Noninterest income:

 

  

 

  

 

  

 

  

Service charges on deposit accounts

$

4,084

$

11,936

$

$

16,020

Other service charges, commissions 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

(1) 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.

(2) For the three and six months ended June 30, 2024, other income primarily includes $6.5 million of losses incurred on AFS securities, income from BOLI, and equity method investment income.