SEGMENT REPORTING AND REVENUE (Tables)
|
6 Months Ended |
Jun. 30, 2024 |
|---|
| Revenue from Contract with Customer [Abstract] |
|
| Schedule of operating 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 |
|
| 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 the periods ended (dollars in thousands):
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|
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|
|
|
|
|
|
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.
|
| Schedule of Disaggregation of Revenue |
Noninterest income disaggregated by major source for the three and six months ended June 30, consisted of the following (dollars in thousands):
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|
|
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|
|
|
|
|
|
|
|
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.
|
| 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, (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.
|