| 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 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, 2026 and March 31, 2025 totaled $154.6 million and $61.5 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 |
2026 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend income |
|
$ |
426,119 |
|
$ |
231,232 |
|
$ |
(185,616) |
|
$ |
471,735 |
Interest expense |
|
|
265,241 |
|
|
122,083 |
|
|
(227,962) |
|
|
159,362 |
Net interest income |
|
|
160,878 |
|
|
109,149 |
|
|
42,346 |
|
|
312,373 |
Provision for credit losses |
|
|
280 |
|
|
2,007 |
|
|
450 |
|
|
2,737 |
Net interest income after provision for credit losses |
|
|
160,598 |
|
|
107,142 |
|
|
41,896 |
|
|
309,636 |
Noninterest income |
|
|
28,944 |
|
|
18,353 |
|
|
7,486 |
|
|
54,783 |
Noninterest expenses |
|
|
93,790 |
|
|
104,996 |
|
|
11,024 |
|
|
209,810 |
Income before income taxes |
|
$ |
95,752 |
|
$ |
20,499 |
|
$ |
38,358 |
|
$ |
154,609 |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (1) |
|
Total |
March 31, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
LHFI, net of unearned income |
|
$ |
23,294,363 |
|
$ |
5,309,769 |
|
$ |
(657,708) |
|
$ |
27,946,424 |
Goodwill (2) |
|
|
1,281,726 |
|
|
473,149 |
|
|
— |
|
|
1,754,875 |
Deposits (3) |
|
|
11,878,174 |
|
|
17,738,197 |
|
|
774,885 |
|
|
30,391,256 |
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
LHFI, net of unearned income |
|
$ |
23,179,687 |
|
$ |
5,317,949 |
|
$ |
(701,469) |
|
$ |
27,796,167 |
Goodwill |
|
|
1,254,979 |
|
|
478,308 |
|
|
— |
|
|
1,733,287 |
Deposits (3) |
|
|
11,339,236 |
|
|
17,820,026 |
|
|
1,312,374 |
|
|
30,471,636 |
(1) Corporate Other includes acquisition accounting fair value adjustments.
(2) During the first quarter of 2026, goodwill was reallocated among reporting units as a result of measurement period adjustments associated with the Sandy Spring acquisition, resulting in a $26.7 million increase in Wholesale Banking and a $5.2 million decrease in Consumer Banking. Refer to Note 2 “Acquisitions” and Note 5 “Goodwill & Intangible Assets” within this Item 1 of this Quarterly Report for more information.
(3) Corporate Other primarily includes brokered deposits.
Revenue
Noninterest income disaggregated by major source for the three months ended March 31, consisted of the following (dollars in thousands):
|
|
|
|
|
|
|
|
|
2026 |
|
2025 |
Noninterest income: |
|
|
|
|
|
|
Service charges on deposit accounts (1): |
|
|
|
|
|
|
Overdraft fees |
|
$ |
6,037 |
|
$ |
5,576 |
Maintenance fees & other |
|
|
6,079 |
|
|
4,107 |
Other service charges, commissions, and fees (1) |
|
|
1,938 |
|
|
1,762 |
Interchange fees (1) |
|
|
3,326 |
|
|
2,949 |
Fiduciary and asset management fees (1): |
|
|
|
|
|
|
Trust asset management fees |
|
|
10,613 |
|
|
3,826 |
Registered advisor management fees |
|
|
7,380 |
|
|
— |
Brokerage management fees |
|
|
2,185 |
|
|
2,871 |
Mortgage banking income |
|
|
2,026 |
|
|
973 |
Bank owned life insurance income |
|
|
5,200 |
|
|
3,537 |
Loan-related interest rate swap fees |
|
|
3,975 |
|
|
2,400 |
Other operating income |
|
|
6,024 |
|
|
1,162 |
Total noninterest income |
|
$ |
54,783 |
|
$ |
29,163 |
(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 months ended March 31, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate
Other (1) |
|
Total |
2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
$ |
4,411 |
|
$ |
7,705 |
|
$ |
— |
|
$ |
12,116 |
Other service charges, commissions and fees |
|
|
|
435 |
|
|
1,503 |
|
|
— |
|
|
1,938 |
Fiduciary and asset management fees |
|
|
|
17,880 |
|
|
2,298 |
|
|
— |
|
|
20,178 |
Mortgage banking income |
|
|
|
— |
|
|
2,026 |
|
|
— |
|
|
2,026 |
Other income |
|
|
|
6,218 |
|
|
4,821 |
|
|
7,486 |
|
|
18,525 |
Total noninterest income |
|
|
$ |
28,944 |
|
$ |
18,353 |
|
$ |
7,486 |
|
$ |
54,783 |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the three months ended March 31, 2026 and March 31, 2025, other income primarily includes income from BOLI and equity method investment income.
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 |
2026 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
$ |
35,519 |
|
$ |
28,171 |
|
$ |
49,723 |
|
$ |
113,413 |
Occupancy expenses |
|
|
376 |
|
|
8,385 |
|
|
4,441 |
|
|
13,202 |
Technology and data processing |
|
|
1,758 |
|
|
274 |
|
|
13,570 |
|
|
15,602 |
Furniture and equipment expenses |
|
|
84 |
|
|
1,592 |
|
|
3,879 |
|
|
5,555 |
Loan-related expenses |
|
|
829 |
|
|
1,254 |
|
|
768 |
|
|
2,851 |
Other expenses (1) |
|
|
55,224 |
|
|
65,320 |
|
|
(61,357) |
|
|
59,187 |
Total noninterest expense |
|
$ |
93,790 |
|
$ |
104,996 |
|
$ |
11,024 |
|
$ |
209,810 |
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
$ |
20,684 |
|
$ |
19,936 |
|
$ |
34,795 |
|
$ |
75,415 |
Occupancy expenses |
|
|
236 |
|
|
5,166 |
|
|
3,178 |
|
|
8,580 |
Technology and data processing |
|
|
886 |
|
|
179 |
|
|
9,123 |
|
|
10,188 |
Furniture and equipment expenses |
|
|
62 |
|
|
994 |
|
|
2,858 |
|
|
3,914 |
Loan-related expenses |
|
|
113 |
|
|
774 |
|
|
362 |
|
|
1,249 |
Other expenses (1) |
|
|
33,231 |
|
|
40,518 |
|
|
(38,911) |
|
|
34,838 |
Total noninterest expense |
|
$ |
55,212 |
|
$ |
67,567 |
|
$ |
11,405 |
|
$ |
134,184 |
(1) Includes allocated expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|