v3.25.2
Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segments
17. SEGMENTS
Beginning with the annual period ending December 31, 2024, the Company adopted the guidance within ASU 2023-07, Segment Reporting (Topic 280), which expanded disclosure requirements for significant segment expenses and other segment items. In connection with the adoption of this guidance, the components that comprise net interest income, which include interest income, interest expense, and funds transfer pricing adjustments, are presented in separate line items in the reportable segment income statement tables below. Salaries and employee benefits are also presented separately as these expenses were previously included within total non-interest expense. Income statement information for prior periods was recast to conform to the current presentation.
The Company's reportable segments are aggregated with a focus on products and services offered and consist of three reportable segments:
•Commercial: provides commercial banking and treasury management products and services to small and middle-market businesses, specialized banking services to sophisticated commercial institutions and investors within niche industries, as well as financial services to the real estate industry.
•Consumer Related: offers both commercial banking services to enterprises in consumer-related sectors and consumer banking services, such as residential mortgage banking.
•Corporate & Other: consists of the Company's investment portfolio, Corporate borrowings and other related items, income and expense items not allocated to other reportable segments, and inter-segment eliminations.
The Company's segment reporting process begins with the assignment of all loan and deposit accounts directly to the segments where these products are originated and/or serviced. Equity capital is assigned to each segment based on the risk profile of their assets and liabilities. With the exception of goodwill, which is assigned a 100% weighting, equity capital allocations ranged from 0% to 25% during the period. Any excess or deficient equity not allocated to segments based on risk is assigned to the Corporate & Other segment.
Net interest income, provision for credit losses, and non-interest expense amounts are recorded in their respective segments to the extent the amounts are directly attributable to those segments. Net interest income is recorded in each segment on a TEB with a corresponding increase in income tax expense, which is eliminated in the Corporate & Other segment.
Further, net interest income of a reportable segment includes a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics. Using this funds transfer pricing methodology, liquidity is transferred between users and providers. A net user of funds has lending/investing in excess of deposits/borrowings and a net provider of funds has deposits/borrowings in excess of lending/investing. A segment that is a user of funds is charged for the use of funds, while a provider of funds is credited through funds transfer pricing, which is determined based on the average estimated life of the assets or liabilities in the portfolio. Residual funds transfer pricing mismatches are allocable to the Corporate & Other segment and presented in net interest income.
The net income amount for each reportable segment is further derived by the use of expense allocations. Certain expenses not directly attributable to a specific segment are allocated across all segments based on key metrics, such as number of employees, number of transactions processed for loans and deposits, and average loan and deposit balances. These types of expenses include information technology, operations, human resources, finance, risk management, credit administration, legal, and marketing.
Income taxes are applied to each segment based on estimated effective tax rates. Any difference in the corporate tax rate and the aggregate effective tax rates in the segments are adjusted in the Corporate & Other segment.
The assignment and allocation methodologies used in the segment reporting process discussed above change from time to time as systems are enhanced, methods for evaluating segment performance or product lines change or as business segments are realigned.
The following is a summary of operating segment information for the periods indicated:
Balance Sheet:Consolidated CompanyCommercialConsumer RelatedCorporate & Other
At June 30, 2025:(in millions)
Assets:
Cash, cash equivalents, and investment securities$21,368 $16 $53 $21,299 
Loans HFS3,022 — 3,022 — 
Loans HFI, net of deferred fees and costs55,939 33,207 22,732 — 
Less: allowance for credit losses(395)(332)(63)— 
Net loans HFI55,544 32,875 22,669 — 
Goodwill and other intangible assets, net653 290 363 — 
Other assets6,138 318 1,978 3,842 
Total assets$86,725 $33,499 $28,085 $25,141 
Liabilities:
Deposits$71,107 $26,307 $38,546 $6,254 
Borrowings and qualifying debt6,730 — 44 6,686 
Other liabilities1,481 76 564 841 
Total liabilities79,318 26,383 39,154 13,781 
Allocated equity:7,407 3,503 2,352 1,552 
Total liabilities and equity$86,725 $29,886 $41,506 $15,333 
Excess funds provided (used)$— $(3,613)$13,421 $(9,808)
Income Statement:
Three Months Ended June 30, 2025:(in millions)
Interest income$1,154.4 $612.9 $303.3 $238.2 
Interest expense456.8 153.5 156.9 146.4 
Funds transfer pricing— (138.3)286.0 (147.7)
Net interest income (expense)697.6 321.1 432.4 (55.9)
Provision for credit losses39.9 35.0 4.8 0.1 
Net interest income (expense) after provision for credit losses657.7 286.1 427.6 (56.0)
Non-interest income148.3 38.3 86.0 24.0 
Salaries and employee benefits179.9 35.4 39.1 105.4 
Other non-interest expense (1)334.8 134.4 291.2 (90.8)
Income (loss) before provision for income taxes291.3 154.6 183.3 (46.6)
Income tax expense (benefit)53.5 28.1 34.3 (8.9)
Net income (loss)$237.8 $126.5 $149.0 $(37.7)
Six Months Ended June 30, 2025:(in millions)
Interest income$2,250.0 $1,204.4 $588.5 $457.1 
Interest expense901.8 303.4 312.9 285.5 
Funds transfer pricing— (270.1)556.2 (286.1)
Net interest income (expense)1,348.2 630.9 831.8 (114.5)
Provision for (recovery of) credit losses71.1 66.2 9.9 (5.0)
Net interest income (expense) after provision for credit losses1,277.1 564.7 821.9 (109.5)
Non-interest income275.7 75.2 165.5 35.0 
Salaries and employee benefits362.3 79.6 82.1 200.6 
Other non-interest expense (1)652.8 259.2 557.9 (164.3)
Income (loss) before provision for income taxes537.7 301.1 347.4 (110.8)
Income tax expense (benefit)100.8 50.5 59.5 (9.2)
Net income (loss)$436.9 $250.6 $287.9 $(101.6)
(1)    The composition of other non-interest expense is consistent with Non-interest expense as presented in the Consolidated Income Statement.
Balance Sheet:Consolidated CompanyCommercialConsumer RelatedCorporate & Other
At December 31, 2024:(in millions)
Assets:
Cash, cash equivalents, and investment securities$19,191 $14 $— $19,177 
Loans HFS2,286 — 2,286 — 
Loans HFI, net of deferred fees and costs53,676 31,544 22,132 — 
Less: allowance for credit losses(374)(320)(54)— 
Net loans HFI53,302 31,224 22,078 — 
Goodwill and other intangible assets, net659 291 368 — 
Other assets5,496 367 1,923 3,206 
Total assets$80,934 $31,896 $26,655 $22,383 
Liabilities:
Deposits$66,341 $25,487 $33,767 $7,087 
Borrowings and qualifying debt6,472 15 37 6,420 
Other liabilities1,414 72 476 866 
Total liabilities74,227 25,574 34,280 14,373 
Allocated equity:6,707 2,727 1,899 2,081 
Total liabilities and equity$80,934 $28,301 $36,179 $16,454 
Excess funds provided (used)$— $(3,595)$9,524 $(5,929)
Income Statement:
Three Months Ended June 30, 2024:(in millions)
Interest income$1,147.5 $625.5 $258.5 $263.5 
Interest expense490.9 174.8 155.3 160.8 
Funds transfer pricing— (158.6)236.0 (77.4)
Net interest income656.6 292.1 339.2 25.3 
Provision for credit losses37.1 36.1 1.0 — 
Net interest income after provision for credit losses619.5 256.0 338.2 25.3 
Non-interest income115.2 23.1 90.0 2.1 
Salaries and employee benefits153.0 39.8 31.5 81.7 
Other non-interest expense (1)333.8 110.4 299.9 (76.5)
Income before provision for income taxes247.9 128.9 96.8 22.2 
Income tax expense54.3 28.1 21.5 4.7 
Net income$193.6 $100.8 $75.3 $17.5 
Six Months Ended June 30, 2024:
Interest income$2,202.5 $1,232.7 $510.9 $458.9 
Interest expense947.0 343.1 289.4 314.5 
Funds transfer pricing— (308.9)410.7 (101.8)
Net interest income1,255.5 580.7 632.2 42.6 
Provision for credit losses52.3 51.4 0.6 0.3 
Net interest income after provision for credit losses1,203.2 529.3 631.6 42.3 
Non-interest income245.1 49.1 185.7 10.3 
Salaries and employee benefits307.9 74.6 69.0 164.3 
Other non-interest expense (1)660.7 231.0 558.6 (128.9)
Income before provision for income taxes479.7 272.8 189.7 17.2 
Income tax expense108.7 61.9 43.3 3.5 
Net income$371.0 $210.9 $146.4 $13.7 
(1)    The composition of other non-interest expense is consistent with Non-interest expense as presented in the Consolidated Income Statement.