| 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 tables present the Company’s operating segment results for the three and six months ended June 30, (dollars in thousands):
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|
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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 |
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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Wholesale Banking |
|
Consumer Banking |
|
Corporate Other |
|
Total |
June 30, 2024 |
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|
|
|
|
|
|
|
|
|
|
|
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 |
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|
|
|
|
|
|
|
|
|
|
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.
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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Three Months Ended |
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Six Months Ended |
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|
2024 |
|
2023 |
|
2024 |
|
2023 |
Noninterest income: |
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|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts (1): |
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|
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|
|
|
|
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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): |
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|
|
|
|
|
|
|
|
|
|
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) |
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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.
The following tables present noninterest income disaggregated by reportable operating segment for the three and six months ended June 30, (dollars in thousands):
|
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|
|
|
|
|
|
|
|
|
Three Months Ended: |
|
|
Wholesale Banking |
|
Consumer Banking |
|
Corporate
Other (1)(2) |
|
Total |
2024 |
|
|
|
|
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|
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|
|
|
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 |
|
|
|
|
|
|
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
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