SEGMENT REPORTING AND REVENUE

6 Months Ended

Jun. 30, 2025

Revenue from Contract with Customer [Abstract]

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.

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 June 30, 2025 and 2024 totaled $17.5 million and $36.6 million, respectively. Income before income taxes for the six months ended June 30, 2025 and 2024 totaled $79.0 million and $96.5 million, respectively. The information is disaggregated by major source and reportable operating segment for the three and six months ended June 30, (dollars in thousands):


Three Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other		Total
2025
Interest and dividend income	$	443,315	$	248,482	$	(181,425)	$	510,372
Interest expense		284,936		135,631		(231,566)		189,001
Net interest income		158,379		112,851		50,141		321,371
Provision for credit losses		80,022		25,685		—		105,707
Net interest income after provision for credit losses		78,357		87,166		50,141		215,664
Noninterest income		23,652		19,661		38,209		81,522
Noninterest expenses		84,593		98,515		96,590		279,698
Income before income taxes	$	17,416	$	8,312	$	(8,240)	$	17,488
2024
Interest and dividend income	$	314,460	$	154,739	$	(148,311)	$	320,888
Interest expense		219,512		78,730		(161,888)		136,354
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		48,450		65,099		36,456		150,005
Income before income taxes	$	37,054	$	24,625	$	(25,089)	$	36,590


Six Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other ⁽¹⁾		Total
2025
Interest and dividend income	$	740,302	$	404,624	$	(328,718)	$	816,208
Interest expense		482,583		215,990		(387,901)		310,672
Net interest income		257,719		188,634		59,183		505,536
Provision for credit losses		95,067		28,278		—		123,345
Net interest income after provision for credit losses		162,652		160,356		59,183		382,191
Noninterest income		35,451		34,295		40,939		110,685
Noninterest expenses		139,805		166,082		107,995		413,882
Income before income taxes	$	58,298	$	28,569	$	(7,873)	$	78,994
2024
Interest and dividend income	$	588,214	$	290,757	$	(295,169)	$	583,802
Interest expense		412,392		145,511		(306,459)		251,444
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		92,405		120,978		41,896		255,279
Income before income taxes	$	76,970	$	47,726	$	(28,241)	$	96,455

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		Total
June 30, 2025
LHFI, net of deferred fees and costs ^{(1) (2)}	$	22,889,472	$	5,228,222	$	(789,361)	$	27,328,333
Goodwill ⁽³⁾ ⁽⁵⁾		1,237,585		473,327		—		1,710,912
Deposits ⁽⁴⁾		11,733,733		17,908,932		1,329,510		30,972,175
December 31, 2024
LHFI, net of deferred fees and costs ⁽¹⁾	$	15,514,640	$	3,085,207	$	(129,226)	$	18,470,621
Goodwill ⁽⁵⁾		850,035		364,018		—		1,214,053
Deposits		7,193,403		11,899,197		1,305,019		20,397,619

⁽¹⁾Corporate Other includes acquisition accounting fair value adjustments.

⁽²⁾Includes a reallocation of $10.3 million of LHFI from the Consumer Banking segment to the Wholesale Banking segments as part of the Company’s customer relationship annual review process that occurred during the first quarter of 2025.

⁽³⁾Wholesale Banking and Consumer Banking includes $387.6 million and $109.3 million, respectively, related to goodwill from the Sandy Spring acquisition. Refer to Note 2 “Acquisitions” and Note 5 “Goodwill & Intangible Assets” for more information.

⁽⁴⁾Includes a reallocation of $198.2 million of deposits from the Consumer Banking segment to the Wholesale Banking segments as part of the Company’s customer relationship annual review process that occurred during the first quarter of 2025.

⁽⁵⁾Wholesale Banking and Consumer Banking includes $210.8 million and $78.0 million, respectively, related to goodwill from the American National acquisition. Refer to Note 2 “Acquisitions” and Note 5 “Goodwill & 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):


	Three Months Ended				Six Months Ended
	2025		2024		2025		2024
Noninterest income:
Service charges on deposit accounts ⁽¹⁾:
Overdraft fees	$	6,063	$	5,101	$	11,640	$	9,849
Maintenance fees & other		6,157		3,985		10,265		7,806
Other service charges, commissions, and fees ⁽¹⁾		2,245		1,967		4,007		3,698
Interchange fees ⁽¹⁾		3,779		3,126		6,727		5,420
Fiduciary and asset management fees ⁽¹⁾:
Trust asset management fees		7,987		3,779		11,811		7,136
Registered advisor management fees		6,902		7		6,904		7
Brokerage management fees		2,834		3,121		5,705		4,602
Mortgage banking income		2,821		1,193		3,794		2,060
Gain (loss) on sale of securities		16		(6,516)		(87)		(6,513)
Bank owned life insurance income		7,327		3,791		10,864		7,037
Loan-related interest rate swap fees		1,733		1,634		4,133		2,850
Other operating income ⁽²⁾		33,658		2,624		34,922		5,413
Total noninterest income	$	81,522	$	23,812	$	110,685	$	49,365

⁽¹⁾ Income within scope of ASC 606, Revenue from Contracts with Customers.

⁽²⁾ Includes a $15.7 million gain on CRE loan sale and a $14.3 million gain on sale of our equity interest in Cary Street Partners LLC (“CSP”) for the three and six months ended June 30, 2025.

The following tables present noninterest income disaggregated by reportable operating segment for the three and six months ended June 30, (dollars in thousands):


Three Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other ⁽¹⁾⁽²⁾		Total
2025
Noninterest income:
Service charges on deposit accounts	$	4,271	$	7,949	$	—	$	12,220
Other service charges, commissions and fees		508		1,623		114		2,245
Fiduciary and asset management fees		15,758		1,965		—		17,723
Mortgage banking income		—		2,821		—		2,821
Other income		3,115		5,303		38,095		46,513
Total noninterest income	$	23,652	$	19,661	$	38,209	$	81,522
2024
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



Six Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other ⁽¹⁾⁽²⁾		Total
2025
Noninterest income:
Service charges on deposit accounts	$	7,281	$	14,624	$	—	$	21,905
Other service charges, commissions and fees		904		2,988		115		4,007
Fiduciary and asset management fees		20,529		3,891		—		24,420
Mortgage banking income		—		3,794		—		3,794
Other income		6,737		8,998		40,824		56,559
Total noninterest income	$	35,451	$	34,295	$	40,939	$	110,685
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

⁽¹⁾ 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.

⁽²⁾ For the three and six months ended June 30, 2025, other income primarily includes a $15.7 million gain on CRE loan sale, a $14.3 million gain on sale of our equity interest in CSP, and income from BOLI.

The following tables present noninterest expense disaggregated by reportable operating segment for the three and six months ended June 30, (dollars in thousands):


Three Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other		Total
2025
Noninterest expenses:
Salaries and benefits	$	32,923	$	29,838	$	47,181	$	109,942
Occupancy expenses		410		7,534		4,838		12,782
Technology and data processing		1,342		392		15,514		17,248
Furniture and equipment expenses		64		1,296		4,984		6,344
Loan-related expenses		(253)		1,060		471		1,278
Other expenses ⁽¹⁾		50,107		58,395		23,602		132,104
Total noninterest expense	$	84,593	$	98,515	$	96,590	$	279,698
2024
Noninterest expenses:
Salaries and benefits	$	17,983	$	18,684	$	31,864	$	68,531
Occupancy expenses		209		4,489		3,138		7,836
Technology and data processing		327		232		9,715		10,274
Furniture and equipment expenses		50		1,051		2,704		3,805
Loan-related expenses		203		851		221		1,275
Other expenses ⁽¹⁾		29,678		39,792		(11,186)		58,284
Total noninterest expense	$	48,450	$	65,099	$	36,456	$	150,005


Six Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other		Total
2025
Noninterest expenses:
Salaries and benefits	$	53,607	$	49,774	$	81,976	$	185,357
Occupancy expenses		646		12,700		8,016		21,362
Technology and data processing		2,227		571		24,637		27,435
Furniture and equipment expenses		127		2,289		7,842		10,258
Loan-related expenses		(140)		1,835		832		2,527
Other expenses ⁽¹⁾		83,338		98,913		(15,308)		166,943
Total noninterest expense	$	139,805	$	166,082	$	107,995	$	413,882
2024
Noninterest expenses:
Salaries and benefits	$	34,418	$	34,956	$	61,039	$	130,413
Occupancy expenses		430		8,443		5,589		14,462
Technology and data processing		638		413		17,350		18,401
Furniture and equipment expenses		88		1,827		5,199		7,114
Loan-related expenses		415		1,599		584		2,598
Other expenses ⁽¹⁾		56,416		73,740		(47,865)		82,291
Total noninterest expense	$	92,405	$	120,978	$	41,896	$	255,279

⁽¹⁾ Includes allocated expenses.