SEGMENT REPORTING AND REVENUE (Tables)
|
3 Months Ended |
Mar. 31, 2025 |
Revenue from Contract with Customer [Abstract] |
|
Schedule of operating segment results |
The following table presents and reconciles income before income taxes compared to the Consolidated Statements of Income. Income before income taxes for the three months ended March 31, 2025 and 2024 totaled $61.5 million and $59.9 million, respectively. The information is disaggregated by major source and reportable operating segment for the three months ended March 31, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other |
|
Total |
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend income |
|
$ |
296,987 |
|
$ |
156,143 |
|
$ |
(147,294) |
|
$ |
305,836 |
Interest expense |
|
|
197,647 |
|
|
80,359 |
|
|
(156,334) |
|
|
121,672 |
Net interest income |
|
|
99,340 |
|
|
75,784 |
|
|
9,040 |
|
|
184,164 |
Provision for credit losses |
|
|
15,045 |
|
|
2,593 |
|
|
— |
|
|
17,638 |
Net interest income after provision for credit losses |
|
|
84,295 |
|
|
73,191 |
|
|
9,040 |
|
|
166,526 |
Noninterest income |
|
|
11,799 |
|
|
14,634 |
|
|
2,730 |
|
|
29,163 |
Noninterest expenses |
|
|
55,212 |
|
|
67,567 |
|
|
11,405 |
|
|
134,184 |
Income before income taxes |
|
$ |
40,882 |
|
$ |
20,258 |
|
$ |
365 |
|
$ |
61,505 |
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend income |
|
$ |
273,754 |
|
$ |
136,018 |
|
$ |
(146,857) |
|
$ |
262,915 |
Interest expense |
|
|
192,880 |
|
|
66,781 |
|
|
(144,571) |
|
|
115,090 |
Net interest income |
|
|
80,874 |
|
$ |
69,237 |
|
$ |
(2,286) |
|
$ |
147,825 |
Provision for credit losses |
|
|
5,366 |
|
|
2,873 |
|
|
— |
|
|
8,239 |
Net interest income after provision for credit losses |
|
|
75,508 |
|
|
66,364 |
|
|
(2,286) |
|
|
139,586 |
Noninterest income |
|
|
8,363 |
|
|
12,615 |
|
|
4,574 |
|
|
25,552 |
Noninterest expenses |
|
|
43,955 |
|
|
55,880 |
|
|
5,438 |
|
|
105,273 |
Income before income taxes |
|
$ |
39,916 |
|
$ |
23,099 |
|
$ |
(3,150) |
|
$ |
59,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other |
|
Total |
March 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
LHFI, net of deferred fees and costs (1) (2) |
|
$ |
15,504,550 |
|
$ |
3,039,079 |
|
$ |
(115,940) |
|
$ |
18,427,689 |
Goodwill |
|
|
850,035 |
|
|
364,018 |
|
|
— |
|
|
1,214,053 |
Deposits (3) |
|
|
7,563,827 |
|
|
11,745,647 |
|
|
1,193,400 |
|
|
20,502,874 |
December 31, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
LHFI, net of deferred fees and costs (1) |
|
$ |
15,514,640 |
|
$ |
3,085,207 |
|
$ |
(129,226) |
|
$ |
18,470,621 |
Goodwill |
|
|
850,035 |
|
|
364,018 |
|
|
— |
|
|
1,214,053 |
Deposits |
|
|
7,193,403 |
|
|
11,899,197 |
|
|
1,305,019 |
|
|
20,397,619 |
(1) Corporate Other includes acquisition accounting fair value adjustments.
(2) Includes a reallocation of $10.3 million of LHFI from the Consumer Banking segment to the Wholesale Banking segments as part of the Company’s customer relationship annual review process.
(3) Includes a reallocation of $198.2 million of deposits from the Consumer Banking segment to the Wholesale Banking segments as part of the Company’s customer relationship annual review process.
|
Schedule of Disaggregation of Revenue |
Noninterest income disaggregated by major source for the three months ended March 31, consisted of the following (dollars in thousands):
|
|
|
|
|
|
|
|
|
2025 |
|
2024 |
Noninterest income: |
|
|
|
|
|
|
Service charges on deposit accounts (1): |
|
|
|
|
|
|
Overdraft fees |
|
$ |
5,576 |
|
$ |
4,748 |
Maintenance fees & other |
|
|
4,107 |
|
|
3,821 |
Other service charges, commissions, and fees (1) |
|
|
1,762 |
|
|
1,731 |
Interchange fees(1) |
|
|
2,949 |
|
|
2,294 |
Fiduciary and asset management fees (1): |
|
|
|
|
|
|
Trust asset management fees |
|
|
3,826 |
|
|
3,356 |
Brokerage management fees |
|
|
2,871 |
|
|
1,482 |
Mortgage banking income |
|
|
973 |
|
|
867 |
(Loss) gain on sale of securities |
|
|
(102) |
|
|
3 |
Bank owned life insurance income |
|
|
3,537 |
|
|
3,245 |
Loan-related interest rate swap fees |
|
|
2,400 |
|
|
1,216 |
Other operating income |
|
|
1,264 |
|
|
2,789 |
Total noninterest income |
|
$ |
29,163 |
|
$ |
25,552 |
(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 months ended March 31, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other (1) |
|
Total |
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
$ |
3,010 |
|
$ |
6,673 |
|
$ |
— |
|
$ |
9,683 |
Other service charges, commissions and fees |
|
|
|
396 |
|
|
1,366 |
|
|
— |
|
|
1,762 |
Fiduciary and asset management fees |
|
|
|
4,771 |
|
|
1,926 |
|
|
— |
|
|
6,697 |
Mortgage banking income |
|
|
|
— |
|
|
973 |
|
|
— |
|
|
973 |
Other income |
|
|
|
3,622 |
|
|
3,696 |
|
|
2,730 |
|
|
10,048 |
Total noninterest income |
|
|
$ |
11,799 |
|
$ |
14,634 |
|
$ |
2,730 |
|
$ |
29,163 |
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
$ |
2,611 |
|
$ |
5,958 |
|
$ |
— |
|
$ |
8,569 |
Other service charges, commissions and fees |
|
|
|
396 |
|
|
1,335 |
|
|
— |
|
|
1,731 |
Fiduciary and asset management fees |
|
|
|
3,286 |
|
|
1,552 |
|
|
— |
|
|
4,838 |
Mortgage banking income |
|
|
|
— |
|
|
867 |
|
|
— |
|
|
867 |
Other income |
|
|
|
2,070 |
|
|
2,903 |
|
|
4,574 |
|
|
9,547 |
Total noninterest income |
|
|
$ |
8,363 |
|
$ |
12,615 |
|
$ |
4,574 |
|
$ |
25,552 |
(1) For the three months ended March 31, 2025 and 2024, other income primarily includes income from BOLI and equity method investment income.
|
Disaggregated noninterest expense by segment |
The following tables present noninterest expense disaggregated by reportable operating segment for the three months ended March 31, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other |
|
Total |
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
$ |
20,684 |
|
$ |
19,936 |
|
$ |
34,795 |
|
$ |
75,415 |
Occupancy expenses |
|
|
236 |
|
|
5,166 |
|
|
3,178 |
|
|
8,580 |
Furniture and equipment expenses |
|
|
62 |
|
|
994 |
|
|
2,858 |
|
|
3,914 |
Loan-related expenses |
|
|
113 |
|
|
774 |
|
|
362 |
|
|
1,249 |
Other expenses (1) |
|
|
34,117 |
|
|
40,697 |
|
|
(29,788) |
|
|
45,026 |
Total noninterest expense |
|
$ |
55,212 |
|
$ |
67,567 |
|
$ |
11,405 |
|
$ |
134,184 |
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
$ |
16,434 |
|
$ |
16,273 |
|
$ |
29,175 |
|
$ |
61,882 |
Occupancy expenses |
|
|
222 |
|
|
3,953 |
|
|
2,450 |
|
|
6,625 |
Furniture and equipment expenses |
|
|
38 |
|
|
776 |
|
|
2,495 |
|
|
3,309 |
Loan-related expenses |
|
|
212 |
|
|
748 |
|
|
363 |
|
|
1,323 |
Other expenses (1) |
|
|
27,049 |
|
|
34,130 |
|
|
(29,045) |
|
|
32,134 |
Total noninterest expense |
|
$ |
43,955 |
|
$ |
55,880 |
|
$ |
5,438 |
|
$ |
105,273 |
(1) Includes allocated expenses
|