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Business Segments
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Business Segments Business Segments
The Company organizes its operations into three reportable operating segments: (1) Consumer and Business Banking; (2) Commercial Banking; and (3) Treasury and Other. These segments are defined by the type of customers served, and the related products and services provided. The segments reflect how financial information is currently evaluated by management. Operating segment results are based on the Company’s internal management reporting process, which reflects assignments and allocations of certain balance sheet and income statement items. The information presented is not indicative of how the segments would perform if they operated as independent entities.

The Consumer and Business Banking segment primarily provides financial products and services to consumer and commercial customers through the Company’s domestic branch network and digital banking platforms. This segment offers consumer and commercial deposits, mortgage and home equity loans, and other products and services. It also originates commercial loans for small- and medium-sized enterprises through the Company’s branch network. Other products and services provided by this segment include wealth management, private banking, treasury management, interest rate risk hedging and foreign exchange services.

The Commercial Banking segment primarily generates commercial loan and deposit products. Commercial loan products include CRE lending, construction financing, commercial business lending, working capital lines of credit, trade finance, letters of credit, affordable housing lending, asset-based lending, asset-backed finance, project finance and equipment financing. Commercial deposit products and other financial services include treasury management, foreign exchange services and interest rate and commodity risk hedging.

The remaining centralized functions, including the corporate treasury activities of the Company and eliminations of inter-segment amounts, have been aggregated and included in the Treasury and Other segment, which provides broad administrative support to the two core segments, namely the Consumer and Business Banking and the Commercial Banking segments.

The Company utilizes an internal reporting process to measure the performance of the three operating segments within the Company. The internal reporting process derives operating segment results by utilizing allocation methodologies for revenues and expenses. Net interest income of each segment represents the difference between actual interest earned on assets and interest incurred on liabilities of the segment, adjusted for funding charges or credits through the Company’s internal funds transfer pricing (“FTP”) process. Noninterest income and noninterest expense directly attributable to a business segment are assigned to that segment. Indirect costs, including technology-related costs and corporate overhead, are allocated based on a segment’s estimated usage using factors including but not limited to, full-time equivalent employees, net interest income, and loan and deposit volume. Charge-offs are recorded to the segment directly associated with the respective loans charged off, and provision for credit losses is recorded to the segments based on the related loans for which allowances are evaluated. The Company’s internal reporting process utilizes a full-allocation methodology. Under this methodology, corporate and indirect expenses incurred by the Treasury and Other segment are allocated to the Consumer and Business Banking and the Commercial Banking segments, except certain corporate treasury-related expenses and insignificant unallocated expenses.

The corporate treasury function within the Treasury and Other segment is responsible for the Company’s liquidity and interest rate management, and the internal FTP process. The FTP process is formulated with the goal of encouraging loan and deposit growth that is consistent with the Company’s overall profitability objectives, as well as providing a reasonable and consistent basis for the measurement of its business segments’ net interest margins and profitability. The FTP process charges a cost to fund loans (“FTP charges for loans”) and allocates credits for funds provided from deposits (“FTP credits for deposits”) using internal FTP rates. FTP charges for loans are determined based on a matched cost of funds, which is tied to the pricing and term characteristics of the loans. FTP credits for deposits are based on matched funding credit rates, which are tied to the implied or stated maturity of the deposits. FTP credits for deposits reflect the long-term value generated by the deposits. The net spread between the total internal FTP charges and credits is recorded as part of net interest income in the Treasury and Other segment. The FTP process transfers the corporate interest rate risk exposure to the treasury function within the Treasury and Other segment, where such exposures are centrally managed. The Company’s internal FTP assumptions and methodologies are reviewed at least annually to ensure that the process is reflective of current market conditions.
During the third quarter of 2024, the Company refined its segment allocation methodology and reclassified certain deposits and their related income or expenses from the “Consumer and Business Banking” segment to the “Commercial Banking” or “Treasury and Other” segments, and certain loan balances and their related income or expenses from the “Commercial Banking” segment to the “Treasury and Other” segment. Balances for the prior year periods have been reclassified for comparability.

The following tables present the operating results and other key financial measures for the individual operating segments as of and for the three and nine months ended September 30, 2024 and 2023:
($ in thousands)Consumer and Business BankingCommercial Banking
Treasury and Other
Total
Three Months Ended September 30, 2024
Net interest income (loss) before provision for credit losses$290,884 $288,704 $(6,866)$572,722 
Provision for (reversal of) credit losses
5,927 36,934 (861)42,000 
Noninterest income27,970 45,577 11,214 84,761 
Noninterest expense112,006 93,602 20,558 226,166 
Segment income (loss) before income taxes200,921 203,745 (15,349)389,317 
Segment net income$141,532 $143,218 $14,416 $299,166 
As of September 30, 2024
Segment assets$19,650,183 $35,714,691 $19,118,846 $74,483,720 
($ in thousands)Consumer and Business BankingCommercial Banking
Treasury and Other
Total
Three Months Ended September 30, 2023
Net interest income (loss) before provision for credit losses
$314,521 $284,787 $(28,495)$570,813 
Provision for credit losses2,563 35,506 3,931 42,000 
Noninterest income25,119 42,166 9,467 76,752 
Noninterest expense105,557 86,613 59,844 252,014 
Segment income (loss) before income taxes231,520 204,834 (82,803)353,551 
Segment net income (loss)
$163,513 $144,489 $(20,264)$287,738 
As of September 30, 2023
Segment assets$18,925,029 $34,028,487 $15,335,942 $68,289,458 
($ in thousands)Consumer and Business BankingCommercial Banking
Treasury and Other
Total
Nine Months Ended September 30, 2024
Net interest income (loss) before provision for credit losses
$880,316 $855,607 $(44,833)$1,691,090 
Provision for (reversal of) credit losses
5,246 99,996 (1,242)104,000 
Noninterest income80,288 141,634 26,500 248,422 
Noninterest expense337,836 296,252 75,387 709,475 
Segment income (loss) before income taxes617,522 600,993 (92,478)1,126,037 
Segment net income$434,992 $423,407 $14,072 $872,471 
As of September 30, 2024
Segment assets$19,650,183 $35,714,691 $19,118,846 $74,483,720 
($ in thousands)Consumer and Business BankingCommercial BankingTreasury and OtherTotal
Nine Months Ended September 30, 2023
Net interest income (loss) before reversal of credit losses$922,845 $825,122 $(10,547)$1,737,420 
Provision for credit losses29,037 56,093 2,870 88,000 
Noninterest income77,191 128,306 9,864 215,361 
Noninterest expense318,947 255,709 157,594 732,250 
Segment income (loss) before income taxes652,052 641,626 (161,147)1,132,531 
Segment net income$460,516 $453,360 $8,332 $922,208 
As of September 30, 2023
Segment assets$18,925,029 $34,028,487 $15,335,942 $68,289,458