v3.26.1
Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segments
17. SEGMENTS
The Company's operating 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, 2026:(in millions)
Assets:
Cash, cash equivalents, and investment securities$26,558 $14 $— $26,544 
Loans HFS4,347 62 4,285 — 
Loans HFI, net of deferred fees and costs60,949 36,153 24,796 — 
Less: allowance for credit losses(487)(413)(74)— 
Net loans HFI60,462 35,740 24,722 — 
Goodwill and other intangible assets, net644 290 354 — 
Other assets6,690 378 2,483 3,829 
Total assets$98,701 $36,484 $31,844 $30,373 
Liabilities:
Deposits$81,874 $31,220 $44,619 $6,035 
Borrowings and qualifying debt7,305 — 57 7,248 
Other liabilities1,387 108 500 779 
Total liabilities90,566 31,328 45,176 14,062 
Allocated equity:8,135 3,584 2,637 1,914 
Total liabilities and equity$98,701 $34,912 $47,813 $15,976 
Excess funds (used) provided$— $(1,572)$15,969 $(14,397)
Income Statement:
Three Months Ended June 30, 2026:(in millions)
Interest income$1,231.9 $608.6 $342.3 $281.0 
Interest expense435.0 165.1 151.7 118.2 
Funds transfer pricing— (62.0)343.0 (281.0)
Net interest income (expense)796.9 381.5 533.6 (118.2)
Provision for (recovery of) credit losses80.4 82.7 (2.7)0.4 
Net interest income (expense) after provision for credit losses716.5 298.8 536.3 (118.6)
Non-interest income198.8 56.9 109.6 32.3 
Salaries and employee benefits204.3 43.8 52.9 107.6 
Other non-interest expense (1)379.0 139.3 338.7 (99.0)
Income (loss) before provision for income taxes332.0 172.6 254.3 (94.9)
Income tax expense (benefit)63.2 32.8 48.8 (18.4)
Net income (loss)$268.8 $139.8 $205.5 $(76.5)
Six Months Ended June 30, 2026:(in millions)
Interest income$2,420.1 $1,207.0 $672.3 $540.8 
Interest expense856.9 323.4 302.5 231.0 
Funds transfer pricing— (131.6)648.3 (516.7)
Net interest income (expense)1,563.2 752.0 1,018.1 (206.9)
Provision for (recovery of) credit losses293.6 288.9 3.8 0.9 
Net interest income (expense) after provision for credit losses1,269.6 463.1 1,014.3 (207.8)
Non-interest income451.4 104.7 228.1 118.6 
Salaries and employee benefits409.8 87.8 103.7 218.3 
Other non-interest expense (1)747.9 278.1 660.6 (190.8)
Income (loss) before provision for income taxes563.3 201.9 478.1 (116.7)
Income tax expense (benefit)105.3 37.8 88.3 (20.8)
Net income (loss)$458.0 $164.1 $389.8 $(95.9)
(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, 2025:(in millions)
Assets:
Cash, cash equivalents, and investment securities$24,034 $16 $— $24,018 
Loans HFS3,498 67 3,431 — 
Loans HFI, net of deferred fees and costs58,677 34,784 23,893 — 
Less: allowance for credit losses(461)(390)(71)— 
Net loans HFI58,216 34,394 23,822 — 
Goodwill and other intangible assets, net649 290 359 — 
Other assets6,377 352 2,237 3,788 
Total assets$92,774 $35,119 $29,849 $27,806 
Liabilities:
Deposits$77,159 $30,806 $40,466 $5,887 
Borrowings and qualifying debt6,316 — 48 6,268 
Other liabilities1,353 91 336 926 
Total liabilities84,828 30,897 40,850 13,081 
Allocated equity:7,946 3,400 2,570 1,976 
Total liabilities and equity$92,774 $34,297 $43,420 $15,057 
Excess funds provided (used)$— $(822)$13,571 $(12,749)
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 income697.6 321.1 432.4 (55.9)
Provision for credit losses39.9 35.0 4.8 0.1 
Net interest income 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 expense53.5 28.1 34.3 (8.9)
Net income$237.8 $126.5 $149.0 $(37.7)
Six Months Ended June 30, 2025:
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 income1,348.2 630.9 831.8 (114.5)
Provision for 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 before provision for income taxes537.7 301.1 347.4 (110.8)
Income tax expense100.8 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.