v3.26.1
Business Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business Segment Reporting Business Segment Reporting
The Company's reportable segments are determined by its Chief Executive Officer, who is the designated Chief Operating Decision Maker (“CODM”). The company has strategically aligned its operations into the following three reportable segments: Consumer Banking, Commercial Banking, and Wealth Management (collectively, the Business Segments). These operating segments are strategic business units that offer different products and services and have different marketing strategies.
To evaluate segment performance and inform resource allocation decisions, the CODM regularly reviews each segment’s revenues and net income compared to budget. This process allows the Company to (1) assess the profitability of a specific business segment by aligning relevant costs with revenue, and (2) evaluate each business segment in a way that reflects its economic impact on consolidated earnings.
During the year ended December 31, 2025, the Company modified the structure of its internal organization to better align financial reporting with the way management evaluates performance and allocates resources. Previously, the Company reported two operating segments: Community Banking and Wealth Management. As a result of the organizational changes, management now reviews operating performance and makes resource allocation decisions based on three operating segments: Consumer, Commercial, and Wealth Management.
This change represents a reconsideration of the Company’s operating and reportable segments in accordance with ASC 280, Segment Reporting. In accordance with ASC 280‑10‑50‑34, the Company has recast all prior‑period segment
information presented for comparative purposes to reflect the new segment structure. The change affected the aggregation and presentation of certain revenues, expenses, and allocated corporate costs among the Company’s operating segments, but did not impact consolidated net income, total assets, shareholders’ equity, or cash flows for any periods presented.
Consistent with the requirements of ASC 250‑10‑50‑1(a), the recast of prior periods has been applied retrospectively to all comparative periods presented herein, and the nature and reason for the change in segment presentation are disclosed. The change did not result from a change in accounting principle but rather from a change in the organizational structure that constitutes a change in the internal information regularly reviewed by the CODM.
Management believes the new segment structure provides improved transparency into the distinct customer groups served by the Company and the economic characteristics of each segment.
The Consumer Banking operating segment consists of various consumer loan and deposit products offered primarily through its 159 full-service branches. This segment also includes residential mortgage, installment lending and other consumer loan financing options, along with debit and credit card loan and fee businesses.
The Commercial Banking operating segment includes full-service relationship banking solutions to businesses, agencies and community organizations including commercial, small business and government segments. Our business payment solutions include treasury management services, merchant and commercial bank card products.
The Wealth Management operating segment provides a full range of “fee-only” wealth management solutions, including investment management, fiduciary services, financial, estate, and tax planning services to individuals, businesses, and foundations. Services are provided through Central Trust Company and Central Investment Advisors, both divisions of The Central Trust Bank.
The Company uses a funds transfer pricing method to value funds used (e.g., loans, fixed assets, cash, etc.) and funds provided (deposits, borrowings, and equity) by the business segments and their components. This process assigns a specific value to each new source or use of funds with a maturity, based on current interest rates, thus determining an interest spread at the time of the transaction. Non-maturity assets and liabilities are valued using weighted average pools. The funds transfer pricing process attempts to remove interest rate risk from valuation, allowing management to compare profitability under various rate environments. The operating segments also include a number of allocations of income and expense from various support and overhead centers within the Company. Management periodically makes changes to methods of assigning costs and income to its business segments to better reflect operating results.
Segment Financial Information
The following table presents selected financial information by segment and reconciliations of combined segment totals to consolidated totals.
ConsumerCommercialWealth ManagementCorp / OtherTotal
(dollars in thousands)
Three Months Ended June 30, 2026
Net interest income$84,330 $112,984 $(34)$15,504 $212,784 
Provision for (recovery of) credit losses2,826 717 - (8)3,535 
Net interest income after provision for credit losses81,504 112,267 (34)15,512 209,249 
Noninterest income32,900 11,536 22,107 3,012 69,555 
Noninterest expense63,829 41,032 14,089 12,404 131,354 
Income before income taxes50,575 82,771 7,984 6,120 147,450 
Income taxes12,106 19,159 1,919 493 33,677 
Net income$38,469 $63,612 $6,065 $5,627 $113,773 
Assets under advice$- $- $17,273,398 $- $17,273,398 
Three Months Ended June 30, 2025
Net interest income$78,867 $107,830 $(23)$8,383 $195,057 
Provision for (recovery of) credit losses(1,755)411 (1)1,338 (7)
Net interest income after provision for credit losses80,622 107,419 (22)7,045 195,064 
Noninterest income18,534 10,843 18,418 2,270 50,065 
Noninterest expense61,698 38,757 12,691 13,624 126,770 
Income before income taxes37,458 79,505 5,705 (4,309)118,359 
Income taxes8,972 18,439 1,374 (1,791)26,994 
Net income$28,486 $61,066 $4,331 $(2,518)$91,365 
Assets under advice$- $-$14,245,820 $- $14,245,820 
ConsumerCommercialWealth ManagementCorp / OtherTotal
Dollars in thousands
Six Months Ended June 30, 2026
Net interest income$165,601 $226,027 $(49)$29,822 $421,401 
Provision for credit losses5,019 1,649 - 13 6,681 
Net interest income after provision for credit losses160,582 224,378 (49)29,809 414,720 
Noninterest income64,933 22,268 43,441 4,001 134,643 
Noninterest expense126,823 80,655 27,534 22,959 257,971 
Income before income taxes98,692 165,991 15,858 10,851 291,392 
Income taxes23,635 38,433 3,813 651 66,532 
Net income$75,057 $127,558 $12,045 $10,200 $224,860 
Assets under advice$- $- $17,273,398 $- $17,273,398 
Six Months Ended June 30, 2025
Net interest income$154,048 $214,120 $(43)$16,205 $384,330 
Provision for (recovery of ) credit losses130 1,442 (4)1,345 2,913 
Net interest income after provision for credit losses153,918 212,678 (39)14,860 381,417 
Noninterest income47,028 21,220 36,837 3,769 108,854 
Noninterest expense121,604 78,127 25,220 24,080 249,031 
Income before income taxes79,342 155,771 11,578 (5,451)241,240 
Income taxes18,998 36,052 2,780 (2,753)55,077 
Net income$60,344 $119,719 $8,798 $(2,698)$186,163 
Assets under advice$- $- $14,245,820 $- $14,245,820 

The segment activity, as shown above, includes both direct and allocated items. Amounts in the "Corporate / Other" column include activity not related to the segments, such as administrative functions, various support and overhead operating units of the Company. Corporate administrative functions such as Compliance, Accounting, Credit Administration, Human Resources, and our Central Technology Services team expenses are allocated to the segments with an offset in Corp/Other noninterest expense. Expenses for the parent company, the administrative and support functions within the markets not specific to a segment, regulatory expenses, director and shareholder costs, community outreach, and other similar expenses are not allocated to the segments.
The Company's reportable segments are strategic lines of business that offer different products and services. They are managed separately because each line services a specific customer need, requiring different performance measurement analysis and marketing strategies. The performance measurement of the segments is based on the management structure of the Company and is not necessarily comparable with similar information for any other financial institution. The information is also not necessarily indicative of the segments' financial condition and results of operations if they were independent entities.