SEGMENT REPORTING AND REVENUE (Tables)
|
9 Months Ended |
Sep. 30, 2026 |
|---|
| 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 totaled $173.2 million and $116.3 million for the three months ended September 30, 2026 and September 30, 2025, respectively. The information is disaggregated by major source and reportable operating segment for the three months ended September 30, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other |
|
Total |
2026 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend income (expense) (1) |
|
$ |
453,821 |
|
$ |
245,822 |
|
$ |
(198,510) |
|
$ |
501,133 |
Interest expense (income) (1) |
|
|
291,194 |
|
|
134,699 |
|
|
(253,182) |
|
|
172,711 |
Net interest income |
|
|
162,627 |
|
|
111,123 |
|
|
54,672 |
|
|
328,422 |
Provision for credit losses |
|
|
350 |
|
|
5,186 |
|
|
195 |
|
|
5,731 |
Net interest income after provision for credit losses |
|
|
162,277 |
|
|
105,937 |
|
|
54,477 |
|
|
322,691 |
Noninterest income |
|
|
29,486 |
|
|
18,864 |
|
|
6,442 |
|
|
54,792 |
Noninterest expense |
|
|
92,941 |
|
|
107,991 |
|
|
3,401 |
|
|
204,333 |
Income before income taxes |
|
$ |
98,822 |
|
$ |
16,810 |
|
$ |
57,518 |
|
$ |
173,150 |
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend income (expense) (1) |
|
$ |
454,493 |
|
$ |
252,031 |
|
$ |
(203,087) |
|
$ |
503,437 |
Interest expense (income) (1) |
|
|
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 expense |
|
|
92,982 |
|
|
108,850 |
|
|
36,614 |
|
|
238,446 |
Income before income taxes |
|
$ |
82,506 |
|
$ |
23,973 |
|
$ |
9,803 |
|
$ |
116,282 |
(1) The Company uses a funds transfer pricing methodology for net interest income, which utilizes the matched funding approach to allocate the cost of funds used or credit for funds provided to all operating loans and deposits, resulting in interest and dividend expense and interest income in the Corporate Other segment.
The following table presents and reconciles income before income taxes compared to the Consolidated Statements of Income. Income before income taxes totaled $532.3 million and $195.3 million for the nine months ended September 30, 2026 and September 30, 2025, respectively. The information is disaggregated by major source and reportable operating segment for the nine months ended September 30, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate Other |
|
Total |
2026 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend income (expense) (1) |
|
$ |
1,321,625 |
|
$ |
713,906 |
|
$ |
(575,836) |
|
$ |
1,459,695 |
Interest expense (income) (1) |
|
|
835,085 |
|
|
384,510 |
|
|
(725,813) |
|
|
493,782 |
Net interest income |
|
|
486,540 |
|
|
329,396 |
|
|
149,977 |
|
|
965,913 |
Provision for credit losses |
|
|
6,010 |
|
|
12,884 |
|
|
1,311 |
|
|
20,205 |
Net interest income after provision for credit losses |
|
|
480,530 |
|
|
316,512 |
|
|
148,666 |
|
|
945,708 |
Noninterest income |
|
|
91,296 |
|
|
56,309 |
|
|
52,218 |
|
|
199,823 |
Noninterest expense |
|
|
277,685 |
|
|
318,622 |
|
|
16,972 |
|
|
613,279 |
Income before income taxes |
|
$ |
294,141 |
|
$ |
54,199 |
|
$ |
183,912 |
|
$ |
532,252 |
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend income (expense) (1) |
|
$ |
1,194,795 |
|
$ |
656,655 |
|
$ |
(531,805) |
|
$ |
1,319,645 |
Interest expense (income) (1) |
|
|
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 expense |
|
|
232,787 |
|
|
274,932 |
|
|
144,608 |
|
|
652,327 |
Income before income taxes |
|
$ |
140,803 |
|
$ |
52,542 |
|
$ |
1,931 |
|
$ |
195,276 |
(1) The Company uses a funds transfer pricing methodology for net interest income, which utilizes the matched funding approach to allocate the cost of funds used or credit for funds provided to all operating loans and deposits, resulting in interest and dividend expense and interest income in the Corporate Other segment.
|
| 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 (1) |
|
Total |
September 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
LHFI, net of unearned income |
|
$ |
24,308,720 |
|
$ |
5,564,576 |
|
$ |
(576,680) |
|
$ |
29,296,616 |
Goodwill (2) |
|
|
1,281,726 |
|
|
473,149 |
|
|
— |
|
|
1,754,875 |
Deposits (3) |
|
|
11,738,293 |
|
|
17,859,573 |
|
|
1,367,663 |
|
|
30,965,529 |
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. As of March 31, 2026, the purchase accounting was finalized and no longer subject to change.
(3) Corporate Other primarily includes brokered deposits.
|
| Schedule of Disaggregation of 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 |
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts (1): |
|
|
|
|
|
|
|
|
|
|
|
|
Overdraft fees |
|
$ |
6,608 |
|
$ |
6,396 |
|
$ |
18,551 |
|
$ |
18,036 |
Maintenance fees & other |
|
|
6,278 |
|
|
6,442 |
|
|
18,710 |
|
|
16,707 |
Other service charges, commissions, and fees (1) |
|
|
2,266 |
|
|
2,325 |
|
|
6,490 |
|
|
6,332 |
Interchange fees (1) |
|
|
3,697 |
|
|
4,089 |
|
|
10,773 |
|
|
10,816 |
Fiduciary and asset management fees (1): |
|
|
|
|
|
|
|
|
|
|
|
|
Trust asset management fees |
|
|
10,126 |
|
|
8,730 |
|
|
32,041 |
|
|
20,542 |
Registered advisor management fees |
|
|
7,915 |
|
|
7,240 |
|
|
23,147 |
|
|
14,143 |
Brokerage management fees |
|
|
2,411 |
|
|
2,625 |
|
|
6,902 |
|
|
8,329 |
Mortgage banking income |
|
|
1,528 |
|
|
2,811 |
|
|
6,211 |
|
|
6,605 |
Bank owned life insurance income |
|
|
5,954 |
|
|
5,116 |
|
|
16,888 |
|
|
15,979 |
Loan-related interest rate swap fees |
|
|
4,530 |
|
|
5,911 |
|
|
14,988 |
|
|
10,043 |
Other operating income (2)(3) |
|
|
3,479 |
|
|
66 |
|
|
45,122 |
|
|
34,904 |
Total noninterest income |
|
$ |
54,792 |
|
$ |
51,751 |
|
$ |
199,823 |
|
$ |
162,436 |
(1) Income within scope of ASC 606, Revenue from Contracts with Customers.
(2) Includes a $32.3 million pre-tax gain on sale of equity interest in Bearing Insurance Group, LLC (“Bearing Insurance”) for the nine months ended September 30, 2026.
(3) 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 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.
|
| Disaggregated noninterest income by segment |
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 |
2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
$ |
4,625 |
|
$ |
8,261 |
|
$ |
— |
|
$ |
12,886 |
Other service charges, commissions and fees |
|
|
|
662 |
|
|
1,604 |
|
|
— |
|
|
2,266 |
Fiduciary and asset management fees |
|
|
|
17,967 |
|
|
2,485 |
|
|
— |
|
|
20,452 |
Mortgage banking income |
|
|
|
— |
|
|
1,528 |
|
|
— |
|
|
1,528 |
Other income |
|
|
|
6,232 |
|
|
4,986 |
|
|
6,442 |
|
|
17,660 |
Total noninterest income |
|
|
$ |
29,486 |
|
$ |
18,864 |
|
$ |
6,442 |
|
$ |
54,792 |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended: |
|
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate
Other (1)(2) |
|
Total |
2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
$ |
13,721 |
|
$ |
23,540 |
|
$ |
— |
|
$ |
37,261 |
Other service charges, commissions and fees |
|
|
|
1,746 |
|
|
4,744 |
|
|
— |
|
|
6,490 |
Fiduciary and asset management fees |
|
|
|
54,868 |
|
|
7,222 |
|
|
— |
|
|
62,090 |
Mortgage banking income |
|
|
|
— |
|
|
6,211 |
|
|
— |
|
|
6,211 |
Other income |
|
|
|
20,961 |
|
|
14,592 |
|
|
52,218 |
|
|
87,771 |
Total noninterest income |
|
|
$ |
91,296 |
|
$ |
56,309 |
|
$ |
52,218 |
|
$ |
199,823 |
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 |
(1) For the three months ended September 30, 2026, other income primarily includes income from BOLI. Other income for the nine months ended September 30, 2026 includes a $32.3 million pre-tax gain on sale of equity interest in Bearing Insurance and income from BOLI.
(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 pre-tax gain on the sale of equity interest in CSP, a $10.9 million pre-tax gain on CRE loan sale, and income from BOLI.
|
| Disaggregated noninterest expense by segment |
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 |
2026 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
$ |
33,783 |
|
$ |
28,797 |
|
$ |
51,398 |
|
$ |
113,978 |
Occupancy expenses |
|
|
456 |
|
|
8,236 |
|
|
4,397 |
|
|
13,089 |
Technology and data processing |
|
|
2,307 |
|
|
438 |
|
|
14,747 |
|
|
17,492 |
Furniture and equipment expenses |
|
|
98 |
|
|
1,601 |
|
|
3,905 |
|
|
5,604 |
Loan-related expenses |
|
|
642 |
|
|
1,018 |
|
|
884 |
|
|
2,544 |
Other expenses (1) |
|
|
55,655 |
|
|
67,901 |
|
|
(71,930) |
|
|
51,626 |
Total noninterest expense |
|
$ |
92,941 |
|
$ |
107,991 |
|
$ |
3,401 |
|
$ |
204,333 |
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended: |
|
Wholesale
Banking |
|
Consumer
Banking |
|
Corporate
Other |
|
Total |
2026 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
$ |
100,817 |
|
$ |
84,483 |
|
$ |
154,400 |
|
$ |
339,700 |
Occupancy expenses |
|
|
1,224 |
|
|
24,960 |
|
|
12,969 |
|
|
39,153 |
Technology and data processing |
|
|
5,929 |
|
|
1,115 |
|
|
42,066 |
|
|
49,110 |
Furniture and equipment expenses |
|
|
262 |
|
|
4,870 |
|
|
11,559 |
|
|
16,691 |
Loan-related expenses |
|
|
2,039 |
|
|
3,922 |
|
|
2,157 |
|
|
8,118 |
Other expenses (1) |
|
|
167,414 |
|
|
199,272 |
|
|
(206,179) |
|
|
160,507 |
Total noninterest expense |
|
$ |
277,685 |
|
$ |
318,622 |
|
$ |
16,972 |
|
$ |
613,279 |
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
(1) Includes allocated expenses
|