| 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.
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 September 30, 2025 and 2024 totaled $116.3 million and $92.0 million, respectively. Income before income taxes for the nine months ended September 30, 2025 and 2024 totaled $195.3 million and $188.5 million, respectively. The information is disaggregated by major source and reportable operating segment for the three and nine months ended September 30, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended: |
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other |
|
Total |
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend income |
|
$ |
454,493 |
|
$ |
252,031 |
|
$ |
(203,087) |
|
$ |
503,437 |
Interest expense |
|
|
293,637 |
|
|
137,295 |
|
|
(246,705) |
|
|
184,227 |
Net interest income |
|
|
160,856 |
|
|
114,736 |
|
|
43,618 |
|
|
319,210 |
Provision for credit losses |
|
|
14,368 |
|
|
1,858 |
|
|
7 |
|
|
16,233 |
Net interest income after provision for credit losses |
|
|
146,488 |
|
|
112,878 |
|
|
43,611 |
|
|
302,977 |
Noninterest income |
|
|
29,000 |
|
|
19,945 |
|
|
2,806 |
|
|
51,751 |
Noninterest expenses |
|
|
92,982 |
|
|
108,850 |
|
|
36,614 |
|
|
238,446 |
Income before income taxes |
|
$ |
82,506 |
|
$ |
23,973 |
|
$ |
9,803 |
|
$ |
116,282 |
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend income |
|
$ |
323,446 |
|
$ |
165,012 |
|
$ |
(163,930) |
|
$ |
324,528 |
Interest expense |
|
|
222,349 |
|
|
85,900 |
|
|
(166,653) |
|
|
141,596 |
Net interest income |
|
|
101,097 |
|
$ |
79,112 |
|
$ |
2,723 |
|
$ |
182,932 |
Provision for credit losses |
|
|
217 |
|
|
2,389 |
|
|
(3) |
|
|
2,603 |
Net interest income after provision for credit losses |
|
|
100,880 |
|
|
76,723 |
|
|
2,726 |
|
|
180,329 |
Noninterest income |
|
|
10,773 |
|
|
15,721 |
|
|
7,792 |
|
|
34,286 |
Noninterest expenses |
|
|
50,521 |
|
|
64,694 |
|
|
7,367 |
|
|
122,582 |
Income before income taxes |
|
$ |
61,132 |
|
$ |
27,750 |
|
$ |
3,151 |
|
$ |
92,033 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended: |
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other |
|
Total |
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend income |
|
$ |
1,194,795 |
|
$ |
656,655 |
|
$ |
(531,805) |
|
$ |
1,319,645 |
Interest expense |
|
|
776,220 |
|
|
353,285 |
|
|
(634,605) |
|
|
494,900 |
Net interest income |
|
|
418,575 |
|
|
303,370 |
|
|
102,800 |
|
|
824,745 |
Provision for credit losses |
|
|
109,435 |
|
|
30,136 |
|
|
7 |
|
|
139,578 |
Net interest income after provision for credit losses |
|
|
309,140 |
|
|
273,234 |
|
|
102,793 |
|
|
685,167 |
Noninterest income |
|
|
64,450 |
|
|
54,240 |
|
|
43,746 |
|
|
162,436 |
Noninterest expenses |
|
|
232,787 |
|
|
274,932 |
|
|
144,608 |
|
|
652,327 |
Income before income taxes |
|
$ |
140,803 |
|
$ |
52,542 |
|
$ |
1,931 |
|
$ |
195,276 |
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend income |
|
$ |
911,660 |
|
$ |
455,769 |
|
$ |
(459,099) |
|
$ |
908,330 |
Interest expense |
|
|
634,741 |
|
|
231,411 |
|
|
(473,112) |
|
|
393,040 |
Net interest income |
|
|
276,919 |
|
|
224,358 |
|
|
14,013 |
|
|
515,290 |
Provision for credit losses |
|
|
25,803 |
|
|
6,801 |
|
|
(12) |
|
|
32,592 |
Net interest income after provision for credit losses |
|
|
251,116 |
|
|
217,557 |
|
|
14,025 |
|
|
482,698 |
Noninterest income |
|
|
29,913 |
|
|
43,589 |
|
|
10,149 |
|
|
83,651 |
Noninterest expenses |
|
|
142,926 |
|
|
185,672 |
|
|
49,261 |
|
|
377,859 |
Income before income taxes |
|
$ |
138,103 |
|
$ |
75,474 |
|
$ |
(25,087) |
|
$ |
188,490 |
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 |
September 30, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
LHFI, net of deferred fees and costs (1) |
|
$ |
22,852,155 |
|
$ |
5,257,652 |
|
$ |
(748,634) |
|
$ |
27,361,173 |
Goodwill (2) |
|
|
1,249,654 |
|
|
476,732 |
|
|
— |
|
|
1,726,386 |
Deposits (3) |
|
|
11,548,604 |
|
|
17,958,684 |
|
|
1,158,036 |
|
|
30,665,324 |
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 (3) |
|
|
7,193,403 |
|
|
11,899,197 |
|
|
1,305,019 |
|
|
20,397,619 |
(1) Corporate Other includes acquisition accounting fair value adjustments.
(2) Wholesale Banking and Consumer Banking includes $399.6 million and $112.7 million, respectively, related to goodwill from the Sandy Spring acquisition. Refer to Note 2 “Acquisitions” and Note 5 “Goodwill & Intangible Assets” for more information.
(3) Corporate Other primarily includes brokered deposits.
Revenue
Noninterest income disaggregated by major source for the three and nine months ended September 30, consisted of the following (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts (1): |
|
|
|
|
|
|
|
|
|
|
|
|
Overdraft fees |
|
$ |
6,396 |
|
$ |
5,800 |
|
$ |
18,036 |
|
$ |
15,649 |
Maintenance fees & other |
|
|
6,442 |
|
|
3,992 |
|
|
16,707 |
|
|
11,798 |
Other service charges, commissions, and fees (1) |
|
|
2,325 |
|
|
2,002 |
|
|
6,332 |
|
|
5,700 |
Interchange fees (1) |
|
|
4,089 |
|
|
3,371 |
|
|
10,816 |
|
|
8,791 |
Fiduciary and asset management fees (1): |
|
|
|
|
|
|
|
|
|
|
|
|
Trust asset management fees |
|
|
8,730 |
|
|
3,624 |
|
|
20,542 |
|
|
10,761 |
Registered advisor management fees |
|
|
7,240 |
|
|
5 |
|
|
14,143 |
|
|
11 |
Brokerage management fees |
|
|
2,625 |
|
|
3,229 |
|
|
8,329 |
|
|
7,831 |
Mortgage banking income |
|
|
2,811 |
|
|
1,214 |
|
|
6,605 |
|
|
3,274 |
Gain (loss) on sale of securities |
|
|
4 |
|
|
4 |
|
|
(83) |
|
|
(6,510) |
Bank owned life insurance income |
|
|
5,116 |
|
|
5,037 |
|
|
15,979 |
|
|
12,074 |
Loan-related interest rate swap fees |
|
|
5,911 |
|
|
1,503 |
|
|
10,043 |
|
|
4,353 |
Other operating income (2) |
|
|
62 |
|
|
4,505 |
|
|
34,987 |
|
|
9,919 |
Total noninterest income |
|
$ |
51,751 |
|
$ |
34,286 |
|
$ |
162,436 |
|
$ |
83,651 |
(1) Income within scope of ASC 606, Revenue from Contracts with Customers.
(2) Includes a $4.8 million pre-tax loss related to the final CRE loan sale settlement for the three months ended September 30, 2025. Includes a $14.3 million pre-tax gain on the sale of our equity interest in Cary Street Partners LLC (“CSP”) and a $10.9 million pre-tax gain on CRE loan sale for the nine months ended September 30, 2025.
The following tables present noninterest income disaggregated by reportable operating segment for the three and nine months ended September 30, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended: |
|
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other (1)(2) |
|
Total |
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
$ |
4,537 |
|
$ |
8,301 |
|
$ |
— |
|
$ |
12,838 |
Other service charges, commissions and fees |
|
|
|
813 |
|
|
1,437 |
|
|
75 |
|
|
2,325 |
Fiduciary and asset management fees |
|
|
|
16,548 |
|
|
2,047 |
|
|
— |
|
|
18,595 |
Mortgage banking income |
|
|
|
— |
|
|
2,811 |
|
|
— |
|
|
2,811 |
Other income |
|
|
|
7,102 |
|
|
5,349 |
|
|
2,731 |
|
|
15,182 |
Total noninterest income |
|
|
$ |
29,000 |
|
$ |
19,945 |
|
$ |
2,806 |
|
$ |
51,751 |
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
$ |
2,833 |
|
$ |
6,959 |
|
$ |
— |
|
$ |
9,792 |
Other service charges, commissions and fees |
|
|
|
600 |
|
|
1,402 |
|
|
— |
|
|
2,002 |
Fiduciary and asset management fees |
|
|
|
4,933 |
|
|
1,925 |
|
|
— |
|
|
6,858 |
Mortgage banking income |
|
|
|
— |
|
|
1,214 |
|
|
— |
|
|
1,214 |
Other income |
|
|
|
2,407 |
|
|
4,221 |
|
|
7,792 |
|
|
14,420 |
Total noninterest income |
|
|
$ |
10,773 |
|
$ |
15,721 |
|
$ |
7,792 |
|
$ |
34,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended: |
|
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other (1)(2) |
|
Total |
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
$ |
11,818 |
|
$ |
22,925 |
|
$ |
— |
|
$ |
34,743 |
Other service charges, commissions and fees |
|
|
|
1,717 |
|
|
4,426 |
|
|
189 |
|
|
6,332 |
Fiduciary and asset management fees |
|
|
|
37,076 |
|
|
5,938 |
|
|
— |
|
|
43,014 |
Mortgage banking income |
|
|
|
— |
|
|
6,605 |
|
|
— |
|
|
6,605 |
Other income |
|
|
|
13,839 |
|
|
14,346 |
|
|
43,557 |
|
|
71,742 |
Total noninterest income |
|
|
$ |
64,450 |
|
$ |
54,240 |
|
$ |
43,746 |
|
$ |
162,436 |
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
$ |
8,178 |
|
$ |
19,269 |
|
$ |
— |
|
$ |
27,447 |
Other service charges, commissions and fees |
|
|
|
1,413 |
|
|
4,304 |
|
|
(17) |
|
|
5,700 |
Fiduciary and asset management fees |
|
|
|
13,301 |
|
|
5,302 |
|
|
— |
|
|
18,603 |
Mortgage banking income |
|
|
|
— |
|
|
3,274 |
|
|
— |
|
|
3,274 |
Other income |
|
|
|
7,021 |
|
|
11,440 |
|
|
10,166 |
|
|
28,627 |
Total noninterest income |
|
|
$ |
29,913 |
|
$ |
43,589 |
|
$ |
10,149 |
|
$ |
83,651 |
(1) For the three months ended September 30, 2024, other income primarily includes income from BOLI and equity method investment income. For the nine months ended September 30, 2024, other income primarily includes $6.5 million of losses incurred on AFS securities, income from BOLI, and equity method investment income.
(2) For the three months ended September 30, 2025, other income primarily includes income from BOLI and equity method investment income, partially offset by a $4.8 million pre-tax loss related to the final CRE loan sale settlement. For the nine months ended September 30, 2025, other income primarily includes a $14.3 million gain on the sale of the Company’s equity interest in CSP, a $10.9 million gain on CRE loan sale, and income from BOLI.
The following tables present noninterest expense disaggregated by reportable operating segment for the three and nine months ended September 30, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended: |
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other |
|
Total |
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
$ |
30,979 |
|
$ |
27,892 |
|
$ |
49,448 |
|
$ |
108,319 |
Occupancy expenses |
|
|
418 |
|
|
8,056 |
|
|
5,108 |
|
|
13,582 |
Technology and data processing |
|
|
1,138 |
|
|
504 |
|
|
15,367 |
|
|
17,009 |
Furniture and equipment expenses |
|
|
103 |
|
|
1,204 |
|
|
5,229 |
|
|
6,536 |
Loan-related expenses |
|
|
386 |
|
|
1,436 |
|
|
111 |
|
|
1,933 |
Other expenses (1) |
|
|
59,958 |
|
|
69,758 |
|
|
(38,649) |
|
|
91,067 |
Total noninterest expense |
|
$ |
92,982 |
|
$ |
108,850 |
|
$ |
36,614 |
|
$ |
238,446 |
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
$ |
17,961 |
|
$ |
18,408 |
|
$ |
33,085 |
|
$ |
69,454 |
Occupancy expenses |
|
|
214 |
|
|
4,779 |
|
|
2,813 |
|
|
7,806 |
Technology and data processing |
|
|
456 |
|
|
246 |
|
|
9,035 |
|
|
9,737 |
Furniture and equipment expenses |
|
|
39 |
|
|
955 |
|
|
2,691 |
|
|
3,685 |
Loan-related expenses |
|
|
180 |
|
|
827 |
|
|
438 |
|
|
1,445 |
Other expenses (1) |
|
|
31,671 |
|
|
39,479 |
|
|
(40,695) |
|
|
30,455 |
Total noninterest expense |
|
$ |
50,521 |
|
$ |
64,694 |
|
$ |
7,367 |
|
$ |
122,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended: |
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other |
|
Total |
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
$ |
84,586 |
|
$ |
77,666 |
|
$ |
131,424 |
|
$ |
293,676 |
Occupancy expenses |
|
|
1,064 |
|
|
20,755 |
|
|
13,125 |
|
|
34,944 |
Technology and data processing |
|
|
3,364 |
|
|
1,075 |
|
|
40,005 |
|
|
44,444 |
Furniture and equipment expenses |
|
|
229 |
|
|
3,494 |
|
|
13,071 |
|
|
16,794 |
Loan-related expenses |
|
|
247 |
|
|
3,271 |
|
|
943 |
|
|
4,461 |
Other expenses (1) |
|
|
143,297 |
|
|
168,671 |
|
|
(53,960) |
|
|
258,008 |
Total noninterest expense |
|
$ |
232,787 |
|
$ |
274,932 |
|
$ |
144,608 |
|
$ |
652,327 |
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
$ |
52,379 |
|
$ |
53,365 |
|
$ |
94,123 |
|
$ |
199,867 |
Occupancy expenses |
|
|
645 |
|
|
13,222 |
|
|
8,400 |
|
|
22,267 |
Technology and data processing |
|
|
1,094 |
|
|
660 |
|
|
26,384 |
|
|
28,138 |
Furniture and equipment expenses |
|
|
128 |
|
|
2,781 |
|
|
7,890 |
|
|
10,799 |
Loan-related expenses |
|
|
596 |
|
|
2,425 |
|
|
1,022 |
|
|
4,043 |
Other expenses (1) |
|
|
88,084 |
|
|
113,219 |
|
|
(88,558) |
|
|
112,745 |
Total noninterest expense |
|
$ |
142,926 |
|
$ |
185,672 |
|
$ |
49,261 |
|
$ |
377,859 |
(1) Includes allocated expenses.
|