þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended June 30, 2016
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from to
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Wisconsin
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39-1098068
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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433 Main Street
Green Bay, Wisconsin
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54301
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
þ
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Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller reporting company
¨
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(Do not check if a smaller reporting company)
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Page
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June 30, 2016
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December 31, 2015
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||||
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(Unaudited)
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(Audited)
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(In Thousands, except share and per share data)
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||||||
ASSETS
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||||
Cash and due from banks
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$
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333,000
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$
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374,921
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Interest-bearing deposits in other financial institutions
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131,680
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79,764
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Federal funds sold and securities purchased under agreements to resell
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13,200
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19,000
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Investment securities held to maturity, at amortized cost
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1,236,140
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1,168,230
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Investment securities available for sale, at fair value
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4,801,766
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4,967,414
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Federal Home Loan Bank and Federal Reserve Bank stocks, at cost
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194,501
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147,240
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Loans held for sale
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284,376
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124,915
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Loans
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19,815,286
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18,714,343
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Allowance for loan losses
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(267,780
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)
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(274,264
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)
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Loans, net
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19,547,506
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18,440,079
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Premises and equipment, net
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331,427
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267,606
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Goodwill
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971,951
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968,844
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Mortgage servicing rights, net
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57,474
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61,341
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Other intangible assets, net
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16,427
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16,458
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Trading assets
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77,112
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32,192
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Other assets
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1,042,139
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1,043,831
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Total assets
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$
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29,038,699
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$
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27,711,835
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Noninterest-bearing demand deposits
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$
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5,039,336
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$
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5,562,466
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Interest-bearing deposits
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15,253,514
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15,445,199
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Total deposits
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20,292,850
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21,007,665
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Federal funds purchased and securities sold under agreements to repurchase
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509,150
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431,438
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Other short-term funding
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1,402,407
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402,978
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Long-term funding
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3,511,475
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2,676,164
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Trading liabilities
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79,466
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33,430
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Accrued expenses and other liabilities
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213,204
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222,914
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Total liabilities
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26,008,552
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24,774,589
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Stockholders’ equity
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Preferred equity
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120,201
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121,379
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Common equity:
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Common stock
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1,630
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1,642
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Surplus
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1,453,285
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1,458,522
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Retained earnings
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1,629,915
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1,593,239
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Accumulated other comprehensive income (loss)
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13,453
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(32,616
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)
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Treasury stock, at cost
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(188,337
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)
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(204,920
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)
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Total common equity
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2,909,946
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2,815,867
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Total stockholders’ equity
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3,030,147
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2,937,246
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Total liabilities and stockholders’ equity
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$
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29,038,699
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$
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27,711,835
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Preferred shares issued
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123,904
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125,114
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Preferred shares authorized (par value $1.00 per share)
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750,000
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750,000
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Common shares issued
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163,030,209
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164,200,068
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Common shares authorized (par value $0.01 per share)
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250,000,000
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250,000,000
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Treasury shares of common stock
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11,993,727
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12,960,636
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Three months ended June 30,
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Six months ended June 30,
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||||||||||||
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2016
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2015
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2016
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2015
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(In Thousands, except per share data)
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INTEREST INCOME
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Interest and fees on loans
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$
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163,059
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$
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152,417
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$
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322,715
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$
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304,362
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Interest and dividends on investment securities:
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||||||||
Taxable
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24,270
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23,868
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49,786
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48,960
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Tax-exempt
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7,894
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7,565
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15,724
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15,452
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Other interest
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1,318
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1,771
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2,385
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3,463
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Total interest income
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196,541
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185,621
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390,610
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372,237
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INTEREST EXPENSE
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||||||||
Interest on deposits
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11,678
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8,141
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23,444
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15,760
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Interest on Federal funds purchased and securities sold under agreements to repurchase
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378
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235
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674
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466
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Interest on other short-term funding
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845
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115
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1,360
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196
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Interest on long-term funding
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6,923
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10,642
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16,428
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21,514
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Total interest expense
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19,824
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19,133
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41,906
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37,936
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NET INTEREST INCOME
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176,717
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166,488
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348,704
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334,301
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Provision for credit losses
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14,000
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5,000
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34,000
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9,500
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|
||||
Net interest income after provision for credit losses
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162,717
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161,488
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314,704
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324,801
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NONINTEREST INCOME
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||||||||
Trust service fees
|
11,509
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|
12,515
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|
22,956
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24,602
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|
||||
Service charges on deposit accounts
|
16,444
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|
15,703
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32,717
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|
31,509
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|
||||
Card-based and other nondeposit fees
|
12,717
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13,597
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24,708
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|
26,013
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|
||||
Insurance commissions
|
22,005
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|
|
20,077
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|
|
43,387
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|
|
39,805
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|
||||
Brokerage and annuity commissions
|
4,098
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|
|
4,192
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|
|
7,892
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|
|
7,875
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|
||||
Mortgage banking, net
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4,067
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|
|
9,941
|
|
|
8,271
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|
|
17,349
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|
||||
Capital market fees, net
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3,793
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|
|
2,692
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|
|
7,331
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5,159
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|
||||
Bank owned life insurance income
|
2,973
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|
|
2,381
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|
|
7,743
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|
|
5,256
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|
||||
Asset gains (losses), net
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(343
|
)
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|
1,854
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|
181
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|
|
2,687
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|
||||
Investment securities gains, net
|
3,116
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|
|
1,242
|
|
|
6,214
|
|
|
1,242
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|
||||
Other
|
1,789
|
|
|
2,288
|
|
|
3,960
|
|
|
4,798
|
|
||||
Total noninterest income
|
82,168
|
|
|
86,482
|
|
|
165,360
|
|
|
166,295
|
|
||||
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
||||||||
Personnel expense
|
102,129
|
|
|
102,986
|
|
|
203,527
|
|
|
203,138
|
|
||||
Occupancy
|
13,215
|
|
|
14,308
|
|
|
27,017
|
|
|
31,991
|
|
||||
Equipment
|
5,396
|
|
|
5,739
|
|
|
10,842
|
|
|
11,511
|
|
||||
Technology
|
14,450
|
|
|
16,354
|
|
|
28,714
|
|
|
31,912
|
|
||||
Business development and advertising
|
6,591
|
|
|
6,829
|
|
|
14,802
|
|
|
12,156
|
|
||||
Other intangible amortization
|
539
|
|
|
888
|
|
|
1,043
|
|
|
1,689
|
|
||||
Loan expense
|
3,442
|
|
|
3,681
|
|
|
6,663
|
|
|
6,677
|
|
||||
Legal and professional fees
|
4,856
|
|
|
4,344
|
|
|
9,881
|
|
|
8,882
|
|
||||
Foreclosure / OREO expense, net
|
1,330
|
|
|
1,264
|
|
|
3,207
|
|
|
2,426
|
|
||||
FDIC expense
|
8,750
|
|
|
6,000
|
|
|
16,500
|
|
|
12,500
|
|
||||
Other
|
13,662
|
|
|
14,384
|
|
|
26,135
|
|
|
27,887
|
|
||||
Total noninterest expense
|
174,360
|
|
|
176,777
|
|
|
348,331
|
|
|
350,769
|
|
||||
Income before income taxes
|
70,525
|
|
|
71,193
|
|
|
131,733
|
|
|
140,327
|
|
||||
Income tax expense
|
21,434
|
|
|
21,793
|
|
|
40,108
|
|
|
44,255
|
|
||||
Net income
|
49,091
|
|
|
49,400
|
|
|
91,625
|
|
|
96,072
|
|
||||
Preferred stock dividends
|
2,169
|
|
|
1,545
|
|
|
4,367
|
|
|
2,773
|
|
||||
Net income available to common equity
|
$
|
46,922
|
|
|
$
|
47,855
|
|
|
$
|
87,258
|
|
|
$
|
93,299
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.31
|
|
|
$
|
0.32
|
|
|
$
|
0.58
|
|
|
$
|
0.62
|
|
Diluted
|
$
|
0.31
|
|
|
$
|
0.31
|
|
|
$
|
0.58
|
|
|
$
|
0.61
|
|
Average common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
148,511
|
|
|
149,903
|
|
|
148,556
|
|
|
149,986
|
|
||||
Diluted
|
149,530
|
|
|
151,108
|
|
|
149,518
|
|
|
151,129
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
($ in Thousands)
|
||||||||||||||
Net income
|
$
|
49,091
|
|
|
$
|
49,400
|
|
|
$
|
91,625
|
|
|
$
|
96,072
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
||||||||
Net unrealized gains (losses)
|
22,321
|
|
|
(35,224
|
)
|
|
82,743
|
|
|
12,194
|
|
||||
Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities
|
(1,452
|
)
|
|
—
|
|
|
(3,024
|
)
|
|
—
|
|
||||
Reclassification adjustment for net gains realized in net income
|
(3,116
|
)
|
|
(1,242
|
)
|
|
(6,214
|
)
|
|
(1,242
|
)
|
||||
Income tax (expense) benefit
|
(6,773
|
)
|
|
13,923
|
|
|
(28,048
|
)
|
|
(4,182
|
)
|
||||
Other comprehensive income (loss) on investment securities available for sale
|
10,980
|
|
|
(22,543
|
)
|
|
45,457
|
|
|
6,770
|
|
||||
Defined benefit pension and postretirement obligations:
|
|
|
|
|
|
|
|
||||||||
Amortization of prior service cost
|
12
|
|
|
12
|
|
|
25
|
|
|
25
|
|
||||
Amortization of actuarial losses
|
483
|
|
|
533
|
|
|
965
|
|
|
1,065
|
|
||||
Income tax expense
|
(189
|
)
|
|
(208
|
)
|
|
(378
|
)
|
|
(416
|
)
|
||||
Other comprehensive income on pension and postretirement obligations
|
306
|
|
|
337
|
|
|
612
|
|
|
674
|
|
||||
Total other comprehensive income (loss)
|
11,286
|
|
|
(22,206
|
)
|
|
46,069
|
|
|
7,444
|
|
||||
Comprehensive income
|
$
|
60,377
|
|
|
$
|
27,194
|
|
|
$
|
137,694
|
|
|
$
|
103,516
|
|
|
Preferred Equity
|
|
Common Stock
|
|
Surplus
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury Stock
|
|
Total
|
||||||||||||||
|
($ in Thousands, except per share data)
|
||||||||||||||||||||||||||
Balance, December 31, 2014
|
$
|
59,727
|
|
|
$
|
1,665
|
|
|
$
|
1,484,933
|
|
|
$
|
1,497,818
|
|
|
$
|
(4,850
|
)
|
|
$
|
(239,042
|
)
|
|
$
|
2,800,251
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
96,072
|
|
|
—
|
|
|
—
|
|
|
96,072
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,444
|
|
|
—
|
|
|
7,444
|
|
|||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
103,516
|
|
|||||||||||||
Common stock issued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Stock-based compensation plans, net
|
—
|
|
|
—
|
|
|
2,051
|
|
|
(21,145
|
)
|
|
—
|
|
|
32,798
|
|
|
13,704
|
|
|||||||
Acquisition of Ahmann & Martin Co.
|
—
|
|
|
26
|
|
|
43,504
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,530
|
|
|||||||
Purchase of common stock returned to authorized but unissued
|
—
|
|
|
(49
|
)
|
|
(92,951
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(93,000
|
)
|
|||||||
Purchase of treasury stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,500
|
)
|
|
(4,500
|
)
|
|||||||
Cash dividends:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Common stock, $0.20 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(30,508
|
)
|
|
—
|
|
|
—
|
|
|
(30,508
|
)
|
|||||||
Preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,773
|
)
|
|
—
|
|
|
—
|
|
|
(2,773
|
)
|
|||||||
Issuance of preferred stock
|
62,966
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62,966
|
|
|||||||
Purchase of preferred stock
|
(678
|
)
|
|
—
|
|
|
—
|
|
|
(74
|
)
|
|
—
|
|
|
—
|
|
|
(752
|
)
|
|||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
(706
|
)
|
|
—
|
|
|
—
|
|
|
(706
|
)
|
|||||||
Stock-based compensation expense, net
|
—
|
|
|
—
|
|
|
10,879
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,879
|
|
|||||||
Tax benefit of stock-based compensation
|
—
|
|
|
—
|
|
|
1,784
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,784
|
|
|||||||
Balance, June 30, 2015
|
$
|
122,015
|
|
|
$
|
1,642
|
|
|
$
|
1,450,200
|
|
|
$
|
1,538,684
|
|
|
$
|
2,594
|
|
|
$
|
(210,744
|
)
|
|
$
|
2,904,391
|
|
Balance, December 31, 2015
|
$
|
121,379
|
|
|
$
|
1,642
|
|
|
$
|
1,458,522
|
|
|
$
|
1,593,239
|
|
|
$
|
(32,616
|
)
|
|
$
|
(204,920
|
)
|
|
$
|
2,937,246
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
91,625
|
|
|
—
|
|
|
—
|
|
|
91,625
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46,069
|
|
|
—
|
|
|
46,069
|
|
|||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
137,694
|
|
|||||||||||||
Common stock issued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Stock-based compensation plans, net
|
—
|
|
|
—
|
|
|
1,153
|
|
|
(17,478
|
)
|
|
—
|
|
|
20,601
|
|
|
4,276
|
|
|||||||
Purchase of common stock returned to authorized but unissued
|
—
|
|
|
(12
|
)
|
|
(19,995
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20,007
|
)
|
|||||||
Purchase of treasury stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,018
|
)
|
|
(4,018
|
)
|
|||||||
Cash dividends:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Common stock, $0.22 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(33,034
|
)
|
|
—
|
|
|
—
|
|
|
(33,034
|
)
|
|||||||
Preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,367
|
)
|
|
—
|
|
|
—
|
|
|
(4,367
|
)
|
|||||||
Purchase of preferred stock
|
(1,178
|
)
|
|
—
|
|
|
—
|
|
|
(70
|
)
|
|
—
|
|
|
—
|
|
|
(1,248
|
)
|
|||||||
Stock-based compensation expense, net
|
—
|
|
|
—
|
|
|
13,210
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,210
|
|
|||||||
Tax benefit of stock-based compensation
|
—
|
|
|
—
|
|
|
395
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
395
|
|
|||||||
Balance, June 30, 2016
|
$
|
120,201
|
|
|
$
|
1,630
|
|
|
$
|
1,453,285
|
|
|
$
|
1,629,915
|
|
|
$
|
13,453
|
|
|
$
|
(188,337
|
)
|
|
$
|
3,030,147
|
|
|
Six Months Ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
|
($ in Thousands)
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
91,625
|
|
|
$
|
96,072
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Provision for credit losses
|
34,000
|
|
|
9,500
|
|
||
Depreciation and amortization
|
22,914
|
|
|
24,232
|
|
||
Addition to (recovery of) valuation allowance on mortgage servicing rights, net
|
2,120
|
|
|
(465
|
)
|
||
Amortization of mortgage servicing rights
|
5,896
|
|
|
6,147
|
|
||
Amortization of other intangible assets
|
1,043
|
|
|
1,689
|
|
||
Amortization and accretion on earning assets, funding, and other, net
|
22,045
|
|
|
19,457
|
|
||
Tax benefit of stock based compensation
|
395
|
|
|
1,784
|
|
||
Gain on sales of investment securities, net
|
(6,214
|
)
|
|
(1,242
|
)
|
||
Gain on sales of assets and impairment write-downs, net
|
(181
|
)
|
|
(2,687
|
)
|
||
Gain on mortgage banking activities, net
|
(7,058
|
)
|
|
(8,000
|
)
|
||
Mortgage loans originated and acquired for sale
|
(517,838
|
)
|
|
(619,202
|
)
|
||
Proceeds from sales of mortgage loans held for sale
|
491,980
|
|
|
599,262
|
|
||
(Increase) decrease in interest receivable
|
(4,875
|
)
|
|
808
|
|
||
Increase (decrease) in interest payable
|
(4,739
|
)
|
|
5,596
|
|
||
Net change in other assets and other liabilities
|
(25,836
|
)
|
|
(33,825
|
)
|
||
Net cash provided by operating activities
|
105,277
|
|
|
99,126
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Net increase in loans
|
(1,281,291
|
)
|
|
(703,636
|
)
|
||
Purchases of:
|
|
|
|
||||
Available for sale securities
|
(495,453
|
)
|
|
(1,702,678
|
)
|
||
Held to maturity securities
|
(112,226
|
)
|
|
(133,976
|
)
|
||
Federal Home Loan Bank and Federal Reserve Bank stocks
|
(67,261
|
)
|
|
(14,172
|
)
|
||
Premises, equipment, and software, net of disposals
|
(81,461
|
)
|
|
(26,232
|
)
|
||
Other assets
|
(3,073
|
)
|
|
(8,183
|
)
|
||
Proceeds from:
|
|
|
|
||||
Sales of available for sale securities
|
359,484
|
|
|
1,065,328
|
|
||
Sales of Federal Home Loan Bank stock
|
20,000
|
|
|
42,514
|
|
||
Prepayments, calls, and maturities of available for sale investment securities
|
371,440
|
|
|
620,320
|
|
||
Prepayments, calls, and maturities of held to maturity investment securities
|
37,172
|
|
|
6,290
|
|
||
Sales, prepayments, calls, and maturities of other assets
|
13,362
|
|
|
10,465
|
|
||
Net cash (paid) received in acquisition
|
(685
|
)
|
|
1,132
|
|
||
Net cash used in investing activities
|
(1,239,992
|
)
|
|
(842,828
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Net increase (decrease) in deposits
|
(714,815
|
)
|
|
506,059
|
|
||
Net increase in short-term funding
|
1,077,141
|
|
|
527,248
|
|
||
Repayment of long-term funding
|
(430,018
|
)
|
|
(1,000,017
|
)
|
||
Proceeds from issuance of long-term funding
|
1,265,000
|
|
|
250,000
|
|
||
Proceeds from issuance of common stock for stock-based compensation plans
|
4,276
|
|
|
13,704
|
|
||
Proceeds from issuance of preferred stock
|
—
|
|
|
62,966
|
|
||
Purchase of preferred stock
|
(1,248
|
)
|
|
(752
|
)
|
||
Purchase of common stock returned to authorized but unissued
|
(20,007
|
)
|
|
(93,000
|
)
|
||
Purchase of treasury stock
|
(4,018
|
)
|
|
(4,500
|
)
|
||
Cash dividends on common stock
|
(33,034
|
)
|
|
(30,508
|
)
|
||
Cash dividends on preferred stock
|
(4,367
|
)
|
|
(2,773
|
)
|
||
Net cash provided by financing activities
|
1,138,910
|
|
|
228,427
|
|
||
Net increase (decrease) in cash and cash equivalents
|
4,195
|
|
|
(515,275
|
)
|
||
Cash and cash equivalents at beginning of period
|
473,685
|
|
|
1,032,067
|
|
||
Cash and cash equivalents at end of period
|
$
|
477,880
|
|
|
$
|
516,792
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
||||
Cash paid for interest
|
$
|
46,316
|
|
|
$
|
32,123
|
|
Cash paid for income taxes
|
27,852
|
|
|
40,473
|
|
||
Loans and bank premises transferred to other real estate owned
|
4,704
|
|
|
3,117
|
|
||
Capitalized mortgage servicing rights
|
4,149
|
|
|
6,729
|
|
||
Loans transferred into held for sale from portfolio, net
|
130,694
|
|
|
—
|
|
||
Acquisition:
|
|
|
|
||||
Fair value of assets acquired, including cash and cash equivalents
|
522
|
|
|
4,590
|
|
||
Fair value ascribed to goodwill and intangible assets
|
4,119
|
|
|
51,791
|
|
||
Fair value of liabilities assumed
|
1,423
|
|
|
12,851
|
|
||
Common stock issued in acquisition
|
—
|
|
|
43,530
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands, except per share data)
|
||||||||||||||
Net income
|
$
|
49,091
|
|
|
$
|
49,400
|
|
|
$
|
91,625
|
|
|
$
|
96,072
|
|
Preferred stock dividends
|
(2,169
|
)
|
|
(1,545
|
)
|
|
(4,367
|
)
|
|
(2,773
|
)
|
||||
Net income available to common equity
|
$
|
46,922
|
|
|
$
|
47,855
|
|
|
$
|
87,258
|
|
|
$
|
93,299
|
|
Common shareholder dividends
|
$
|
(16,443
|
)
|
|
$
|
(15,056
|
)
|
|
$
|
(32,646
|
)
|
|
$
|
(30,222
|
)
|
Unvested share-based payment awards
|
(182
|
)
|
|
(172
|
)
|
|
(388
|
)
|
|
(286
|
)
|
||||
Undistributed earnings
|
$
|
30,297
|
|
|
$
|
32,627
|
|
|
$
|
54,224
|
|
|
$
|
62,791
|
|
Undistributed earnings allocated to common shareholders
|
$
|
29,963
|
|
|
$
|
32,262
|
|
|
$
|
53,649
|
|
|
$
|
62,148
|
|
Undistributed earnings allocated to unvested share-based payment awards
|
334
|
|
|
365
|
|
|
575
|
|
|
643
|
|
||||
Undistributed earnings
|
$
|
30,297
|
|
|
$
|
32,627
|
|
|
$
|
54,224
|
|
|
$
|
62,791
|
|
Basic
|
|
|
|
|
|
|
|
||||||||
Distributed earnings to common shareholders
|
$
|
16,443
|
|
|
$
|
15,056
|
|
|
$
|
32,646
|
|
|
$
|
30,222
|
|
Undistributed earnings allocated to common shareholders
|
29,963
|
|
|
32,262
|
|
|
53,649
|
|
|
62,148
|
|
||||
Total common shareholders earnings, basic
|
$
|
46,406
|
|
|
$
|
47,318
|
|
|
$
|
86,295
|
|
|
$
|
92,370
|
|
Diluted
|
|
|
|
|
|
|
|
||||||||
Distributed earnings to common shareholders
|
$
|
16,443
|
|
|
$
|
15,056
|
|
|
$
|
32,646
|
|
|
$
|
30,222
|
|
Undistributed earnings allocated to common shareholders
|
29,963
|
|
|
32,262
|
|
|
53,649
|
|
|
62,148
|
|
||||
Total common shareholders earnings, diluted
|
$
|
46,406
|
|
|
$
|
47,318
|
|
|
$
|
86,295
|
|
|
$
|
92,370
|
|
Weighted average common shares outstanding
|
148,511
|
|
|
149,903
|
|
|
148,556
|
|
|
149,986
|
|
||||
Effect of dilutive common stock awards
|
1,019
|
|
|
1,205
|
|
|
962
|
|
|
1,143
|
|
||||
Diluted weighted average common shares outstanding
|
149,530
|
|
|
151,108
|
|
|
149,518
|
|
|
151,129
|
|
||||
Basic earnings per common share
|
$
|
0.31
|
|
|
$
|
0.32
|
|
|
$
|
0.58
|
|
|
$
|
0.62
|
|
Diluted earnings per common share
|
$
|
0.31
|
|
|
$
|
0.31
|
|
|
$
|
0.58
|
|
|
$
|
0.61
|
|
|
2016
|
|
2015
|
||
Dividend yield
|
2.50
|
%
|
|
2.00
|
%
|
Risk-free interest rate
|
2.00
|
%
|
|
2.00
|
%
|
Weighted average expected volatility
|
25.00
|
%
|
|
20.00
|
%
|
Weighted average expected life
|
5.5 years
|
|
|
6.0 years
|
|
Weighted average per share fair value of options
|
$3.36
|
|
$3.08
|
Stock Options
|
Shares
|
|
Weighted Average
Exercise Price
|
|
Weighted Average Remaining Contractual Term
|
|
Aggregate Intrinsic Value (000s)
|
|||||
Outstanding at December 31, 2014
|
7,847,338
|
|
|
$
|
18.34
|
|
|
|
|
|
||
Granted
|
1,348,504
|
|
|
17.95
|
|
|
|
|
|
|||
Exercised
|
(1,351,646
|
)
|
|
13.90
|
|
|
|
|
|
|||
Forfeited or expired
|
(1,215,053
|
)
|
|
29.13
|
|
|
|
|
|
|||
Outstanding at December 31, 2015
|
6,629,143
|
|
|
$
|
17.22
|
|
|
6.24
|
|
$
|
18,730
|
|
Options Exercisable at December 31, 2015
|
4,190,245
|
|
|
$
|
17.25
|
|
|
4.93
|
|
$
|
14,873
|
|
Granted
|
1,302,298
|
|
|
$
|
17.45
|
|
|
|
|
|
||
Exercised
|
(230,327
|
)
|
|
13.69
|
|
|
|
|
|
|||
Forfeited or expired
|
(117,457
|
)
|
|
22.25
|
|
|
|
|
|
|||
Outstanding at June 30, 2016
|
7,583,657
|
|
|
$
|
17.30
|
|
|
6.43
|
|
$
|
10,047
|
|
Options Exercisable at June 30, 2016
|
4,721,196
|
|
|
$
|
17.21
|
|
|
4.98
|
|
$
|
9,633
|
|
Restricted Stock
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
Outstanding at December 31, 2014
|
1,982,126
|
|
|
$
|
15.79
|
|
Granted
|
1,173,847
|
|
|
18.09
|
|
|
Vested
|
(709,582
|
)
|
|
15.62
|
|
|
Forfeited
|
(196,363
|
)
|
|
16.87
|
|
|
Outstanding at December 31, 2015
|
2,250,028
|
|
|
$
|
17.03
|
|
Granted
|
1,054,923
|
|
|
$
|
17.45
|
|
Vested
|
(795,003
|
)
|
|
16.55
|
|
|
Forfeited
|
(58,802
|
)
|
|
17.64
|
|
|
Outstanding at June 30, 2016
|
2,451,146
|
|
|
$
|
17.34
|
|
June 30, 2016
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|||||||||
|
($ in Thousands)
|
|||||||||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
|||||||||
U. S. Treasury securities
|
$
|
1,000
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1,001
|
|
|
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
|||||||||
FNMA / FHLMC
|
956,834
|
|
|
33,545
|
|
|
—
|
|
|
990,379
|
|
|||||
GNMA
|
1,654,218
|
|
|
23,028
|
|
|
—
|
|
|
1,677,246
|
|
|||||
Private-label
|
1,429
|
|
|
—
|
|
|
(19
|
)
|
|
1,410
|
|
|||||
GNMA commercial mortgage-related securities
|
2,124,491
|
|
|
9,912
|
|
|
(7,482
|
)
|
|
2,126,921
|
|
|||||
Other securities (debt and equity)
|
4,718
|
|
|
91
|
|
|
—
|
|
|
4,809
|
|
|||||
Total investment securities available for sale
|
$
|
4,742,690
|
|
|
$
|
66,577
|
|
|
$
|
(7,501
|
)
|
|
$
|
4,801,766
|
|
|
Investment securities held to maturity:
|
|
|
|
|
|
|
|
|||||||||
Obligations of state and political subdivisions (municipal securities)
|
$
|
1,111,868
|
|
|
$
|
40,280
|
|
|
$
|
(15
|
)
|
|
$
|
1,152,133
|
|
|
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
|||||||||
FNMA / FHLMC
|
39,019
|
|
|
977
|
|
|
(32
|
)
|
|
39,964
|
|
|||||
GNMA
|
85,253
|
|
|
1,510
|
|
|
(5
|
)
|
|
86,758
|
|
|||||
Total investment securities held to maturity
|
$
|
1,236,140
|
|
|
$
|
42,767
|
|
|
$
|
(52
|
)
|
|
$
|
1,278,855
|
|
December 31, 2015
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
|||||||||
|
($ in Thousands)
|
|||||||||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
|||||||||
U. S. Treasury securities
|
$
|
999
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
997
|
|
|
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
|||||||||
FNMA / FHLMC
|
1,388,995
|
|
|
33,791
|
|
|
(8,160
|
)
|
|
1,414,626
|
|
|||||
GNMA
|
1,605,956
|
|
|
507
|
|
|
(16,460
|
)
|
|
1,590,003
|
|
|||||
Private-label
|
1,722
|
|
|
1
|
|
|
(14
|
)
|
|
1,709
|
|
|||||
GNMA commercial mortgage-related securities
|
1,982,477
|
|
|
1,334
|
|
|
(28,501
|
)
|
|
1,955,310
|
|
|||||
Other securities (debt and equity)
|
4,718
|
|
|
51
|
|
|
—
|
|
|
4,769
|
|
|||||
Total investment securities available for sale
|
$
|
4,984,867
|
|
|
$
|
35,684
|
|
|
$
|
(53,137
|
)
|
|
$
|
4,967,414
|
|
|
Investment securities held to maturity:
|
|
|
|
|
|
|
|
|||||||||
Municipal securities
|
$
|
1,043,767
|
|
|
$
|
16,803
|
|
|
$
|
(339
|
)
|
|
$
|
1,060,231
|
|
|
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
|||||||||
FNMA / FHLMC
|
41,469
|
|
|
513
|
|
|
(645
|
)
|
|
41,337
|
|
|||||
GNMA
|
82,994
|
|
|
189
|
|
|
(309
|
)
|
|
82,874
|
|
|||||
Total investment securities held to maturity
|
$
|
1,168,230
|
|
|
$
|
17,505
|
|
|
$
|
(1,293
|
)
|
|
$
|
1,184,442
|
|
|
Available for Sale
|
|
Held to Maturity
|
||||||||||||
($ in Thousands)
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
Due in one year or less
|
$
|
4,500
|
|
|
$
|
4,538
|
|
|
$
|
38,985
|
|
|
$
|
25,846
|
|
Due after one year through five years
|
1,200
|
|
|
1,200
|
|
|
252,762
|
|
|
265,059
|
|
||||
Due after five years through ten years
|
—
|
|
|
—
|
|
|
231,798
|
|
|
242,887
|
|
||||
Due after ten years
|
—
|
|
|
—
|
|
|
588,323
|
|
|
618,341
|
|
||||
Total debt securities
|
5,700
|
|
|
5,738
|
|
|
1,111,868
|
|
|
1,152,133
|
|
||||
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
||||||||
FNMA / FHLMC
|
956,834
|
|
|
990,379
|
|
|
39,019
|
|
|
39,964
|
|
||||
GNMA
|
1,654,218
|
|
|
1,677,246
|
|
|
85,253
|
|
|
86,758
|
|
||||
Private-label
|
1,429
|
|
|
1,410
|
|
|
—
|
|
|
—
|
|
||||
GNMA commercial mortgage-related securities
|
2,124,491
|
|
|
2,126,921
|
|
|
—
|
|
|
—
|
|
||||
Equity securities
|
18
|
|
|
72
|
|
|
—
|
|
|
—
|
|
||||
Total investment securities
|
$
|
4,742,690
|
|
|
$
|
4,801,766
|
|
|
$
|
1,236,140
|
|
|
$
|
1,278,855
|
|
Ratio of Fair Value to Amortized Cost
|
|
|
101.2
|
%
|
|
|
|
103.5
|
%
|
|
Six Months Ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
|
($ in Thousands)
|
||||||
Gross gains
|
$
|
6,403
|
|
|
$
|
5,251
|
|
Gross losses
|
(189
|
)
|
|
(4,009
|
)
|
||
Investment securities gains, net
|
$
|
6,214
|
|
|
$
|
1,242
|
|
Proceeds from sales of investment securities
|
$
|
359,484
|
|
|
$
|
1,065,328
|
|
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||||||||
June 30, 2016
|
Number
of
Securities
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Number
of
Securities
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||||||||
|
($ in Thousands)
|
||||||||||||||||||||||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Private-label
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
4
|
|
|
$
|
(19
|
)
|
|
$
|
1,362
|
|
|
$
|
(19
|
)
|
|
$
|
1,362
|
|
GNMA commercial mortgage-related securities
|
5
|
|
|
(158
|
)
|
|
150,308
|
|
|
21
|
|
|
(7,324
|
)
|
|
475,595
|
|
|
(7,482
|
)
|
|
625,903
|
|
||||||
Total
|
5
|
|
|
$
|
(158
|
)
|
|
$
|
150,308
|
|
|
25
|
|
|
$
|
(7,343
|
)
|
|
$
|
476,957
|
|
|
$
|
(7,501
|
)
|
|
$
|
627,265
|
|
Investment securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Municipal securities
|
1
|
|
|
$
|
(1
|
)
|
|
$
|
511
|
|
|
6
|
|
|
$
|
(14
|
)
|
|
$
|
2,184
|
|
|
$
|
(15
|
)
|
|
$
|
2,695
|
|
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
FNMA / FHLMC
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(32
|
)
|
|
9,173
|
|
|
(32
|
)
|
|
9,173
|
|
||||||
GNMA
|
1
|
|
|
(5
|
)
|
|
1,493
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
1,493
|
|
||||||
Total
|
2
|
|
|
$
|
(6
|
)
|
|
$
|
2,004
|
|
|
8
|
|
|
$
|
(46
|
)
|
|
$
|
11,357
|
|
|
$
|
(52
|
)
|
|
$
|
13,361
|
|
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||||||||
December 31, 2015
|
Number
of Securities |
|
Unrealized
Losses |
|
Fair
Value |
|
Number
of Securities |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
||||||||||||||
|
($ in Thousands)
|
||||||||||||||||||||||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. Treasury securities
|
1
|
|
|
$
|
(2
|
)
|
|
$
|
997
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
997
|
|
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
FNMA / FHLMC
|
17
|
|
|
(1,548
|
)
|
|
220,852
|
|
|
14
|
|
|
(6,612
|
)
|
|
338,186
|
|
|
(8,160
|
)
|
|
559,038
|
|
||||||
GNMA
|
46
|
|
|
(16,460
|
)
|
|
1,434,484
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,460
|
)
|
|
1,434,484
|
|
||||||
Private-label
|
1
|
|
|
(1
|
)
|
|
83
|
|
|
3
|
|
|
(13
|
)
|
|
1,565
|
|
|
(14
|
)
|
|
1,648
|
|
||||||
GNMA commercial mortgage-related securities
|
40
|
|
|
(9,610
|
)
|
|
1,132,844
|
|
|
21
|
|
|
(18,891
|
)
|
|
448,218
|
|
|
(28,501
|
)
|
|
1,581,062
|
|
||||||
Total
|
105
|
|
|
$
|
(27,621
|
)
|
|
$
|
2,789,260
|
|
|
38
|
|
|
$
|
(25,516
|
)
|
|
$
|
787,969
|
|
|
$
|
(53,137
|
)
|
|
$
|
3,577,229
|
|
Investment securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Municipal securities
|
53
|
|
|
$
|
(146
|
)
|
|
$
|
23,137
|
|
|
24
|
|
|
$
|
(193
|
)
|
|
$
|
9,254
|
|
|
$
|
(339
|
)
|
|
$
|
32,391
|
|
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
FNMA / FHLMC
|
10
|
|
|
(177
|
)
|
|
12,754
|
|
|
3
|
|
|
(468
|
)
|
|
11,106
|
|
|
(645
|
)
|
|
23,860
|
|
||||||
GNMA
|
21
|
|
|
(201
|
)
|
|
45,499
|
|
|
3
|
|
|
(108
|
)
|
|
6,797
|
|
|
(309
|
)
|
|
52,296
|
|
||||||
Total
|
84
|
|
|
$
|
(524
|
)
|
|
$
|
81,390
|
|
|
30
|
|
|
$
|
(769
|
)
|
|
$
|
27,157
|
|
|
$
|
(1,293
|
)
|
|
$
|
108,547
|
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
|
($ in Thousands)
|
||||||
Commercial and industrial
|
$
|
6,701,986
|
|
|
$
|
6,190,683
|
|
Commercial real estate — owner occupied
|
921,736
|
|
|
918,212
|
|
||
Commercial and business lending
|
7,623,722
|
|
|
7,108,895
|
|
||
Commercial real estate — investor
|
3,495,791
|
|
|
3,234,266
|
|
||
Real estate construction
|
1,285,573
|
|
|
1,162,145
|
|
||
Commercial real estate lending
|
4,781,364
|
|
|
4,396,411
|
|
||
Total commercial
|
12,405,086
|
|
|
11,505,306
|
|
||
Residential mortgage
|
6,035,720
|
|
|
5,783,267
|
|
||
Home equity
|
968,771
|
|
|
1,005,802
|
|
||
Other consumer
|
405,709
|
|
|
419,968
|
|
||
Total consumer
|
7,410,200
|
|
|
7,209,037
|
|
||
Total loans
|
$
|
19,815,286
|
|
|
$
|
18,714,343
|
|
|
Pass
|
|
Special Mention
|
|
Potential Problem
|
|
Nonaccrual
|
|
Total
|
||||||||||
|
($ in Thousands)
|
||||||||||||||||||
Commercial and industrial
|
$
|
5,910,730
|
|
|
$
|
217,999
|
|
|
$
|
379,818
|
|
|
$
|
193,439
|
|
|
$
|
6,701,986
|
|
Commercial real estate - owner occupied
|
826,327
|
|
|
40,103
|
|
|
45,671
|
|
|
9,635
|
|
|
921,736
|
|
|||||
Commercial and business lending
|
6,737,057
|
|
|
258,102
|
|
|
425,489
|
|
|
203,074
|
|
|
7,623,722
|
|
|||||
Commercial real estate - investor
|
3,436,680
|
|
|
22,502
|
|
|
25,081
|
|
|
11,528
|
|
|
3,495,791
|
|
|||||
Real estate construction
|
1,281,526
|
|
|
973
|
|
|
2,117
|
|
|
957
|
|
|
1,285,573
|
|
|||||
Commercial real estate lending
|
4,718,206
|
|
|
23,475
|
|
|
27,198
|
|
|
12,485
|
|
|
4,781,364
|
|
|||||
Total commercial
|
11,455,263
|
|
|
281,577
|
|
|
452,687
|
|
|
215,559
|
|
|
12,405,086
|
|
|||||
Residential mortgage
|
5,975,297
|
|
|
4,170
|
|
|
3,953
|
|
|
52,300
|
|
|
6,035,720
|
|
|||||
Home equity
|
952,727
|
|
|
1,587
|
|
|
94
|
|
|
14,363
|
|
|
968,771
|
|
|||||
Other consumer
|
404,894
|
|
|
435
|
|
|
—
|
|
|
380
|
|
|
405,709
|
|
|||||
Total consumer
|
7,332,918
|
|
|
6,192
|
|
|
4,047
|
|
|
67,043
|
|
|
7,410,200
|
|
|||||
Total
|
$
|
18,788,181
|
|
|
$
|
287,769
|
|
|
$
|
456,734
|
|
|
$
|
282,602
|
|
|
$
|
19,815,286
|
|
|
Pass
|
|
Special Mention
|
|
Potential Problem
|
|
Nonaccrual
|
|
Total
|
||||||||||
|
($ in Thousands)
|
||||||||||||||||||
Commercial and industrial
|
$
|
5,522,809
|
|
|
$
|
341,169
|
|
|
$
|
233,130
|
|
|
$
|
93,575
|
|
|
$
|
6,190,683
|
|
Commercial real estate - owner occupied
|
835,572
|
|
|
38,885
|
|
|
35,706
|
|
|
8,049
|
|
|
918,212
|
|
|||||
Commercial and business lending
|
6,358,381
|
|
|
380,054
|
|
|
268,836
|
|
|
101,624
|
|
|
7,108,895
|
|
|||||
Commercial real estate - investor
|
3,153,703
|
|
|
45,976
|
|
|
25,944
|
|
|
8,643
|
|
|
3,234,266
|
|
|||||
Real estate construction
|
1,157,034
|
|
|
252
|
|
|
3,919
|
|
|
940
|
|
|
1,162,145
|
|
|||||
Commercial real estate lending
|
4,310,737
|
|
|
46,228
|
|
|
29,863
|
|
|
9,583
|
|
|
4,396,411
|
|
|||||
Total commercial
|
10,669,118
|
|
|
426,282
|
|
|
298,699
|
|
|
111,207
|
|
|
11,505,306
|
|
|||||
Residential mortgage
|
5,727,437
|
|
|
1,552
|
|
|
2,796
|
|
|
51,482
|
|
|
5,783,267
|
|
|||||
Home equity
|
988,574
|
|
|
1,762
|
|
|
222
|
|
|
15,244
|
|
|
1,005,802
|
|
|||||
Other consumer
|
419,087
|
|
|
556
|
|
|
—
|
|
|
325
|
|
|
419,968
|
|
|||||
Total consumer
|
7,135,098
|
|
|
3,870
|
|
|
3,018
|
|
|
67,051
|
|
|
7,209,037
|
|
|||||
Total
|
$
|
17,804,216
|
|
|
$
|
430,152
|
|
|
$
|
301,717
|
|
|
$
|
178,258
|
|
|
$
|
18,714,343
|
|
|
Current
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days or
More
Past Due
(a)
|
|
Nonaccrual
(b)
|
|
Total
|
||||||||||||
|
($ in Thousands)
|
||||||||||||||||||||||
Commercial and industrial
|
$
|
6,506,175
|
|
|
$
|
1,755
|
|
|
$
|
369
|
|
|
$
|
248
|
|
|
$
|
193,439
|
|
|
$
|
6,701,986
|
|
Commercial real estate - owner occupied
|
911,908
|
|
|
193
|
|
|
—
|
|
|
—
|
|
|
9,635
|
|
|
921,736
|
|
||||||
Commercial and business lending
|
7,418,083
|
|
|
1,948
|
|
|
369
|
|
|
248
|
|
|
203,074
|
|
|
7,623,722
|
|
||||||
Commercial real estate - investor
|
3,481,548
|
|
|
2,715
|
|
|
—
|
|
|
—
|
|
|
11,528
|
|
|
3,495,791
|
|
||||||
Real estate construction
|
1,284,092
|
|
|
427
|
|
|
97
|
|
|
—
|
|
|
957
|
|
|
1,285,573
|
|
||||||
Commercial real estate lending
|
4,765,640
|
|
|
3,142
|
|
|
97
|
|
|
—
|
|
|
12,485
|
|
|
4,781,364
|
|
||||||
Total commercial
|
12,183,723
|
|
|
5,090
|
|
|
466
|
|
|
248
|
|
|
215,559
|
|
|
12,405,086
|
|
||||||
Residential mortgage
|
5,976,038
|
|
|
7,040
|
|
|
342
|
|
|
—
|
|
|
52,300
|
|
|
6,035,720
|
|
||||||
Home equity
|
946,678
|
|
|
6,150
|
|
|
1,580
|
|
|
—
|
|
|
14,363
|
|
|
968,771
|
|
||||||
Other consumer
|
402,188
|
|
|
1,313
|
|
|
582
|
|
|
1,246
|
|
|
380
|
|
|
405,709
|
|
||||||
Total consumer
|
7,324,904
|
|
|
14,503
|
|
|
2,504
|
|
|
1,246
|
|
|
67,043
|
|
|
7,410,200
|
|
||||||
Total
|
$
|
19,508,627
|
|
|
$
|
19,593
|
|
|
$
|
2,970
|
|
|
$
|
1,494
|
|
|
$
|
282,602
|
|
|
$
|
19,815,286
|
|
(a)
|
The recorded investment in loans past due 90 days or more and still accruing totaled
$1 million
at
June 30, 2016
(the same as the reported balances for the accruing loans noted above).
|
(b)
|
Of the total nonaccrual loans,
$236 million
or
84%
were current with respect to payment at
June 30, 2016
.
|
|
Current
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days or
More
Past Due
(a)
|
|
Nonaccrual
(b)
|
|
Total
|
||||||||||||
|
($ in Thousands)
|
||||||||||||||||||||||
Commercial and industrial
|
$
|
6,095,848
|
|
|
$
|
602
|
|
|
$
|
409
|
|
|
$
|
249
|
|
|
$
|
93,575
|
|
|
$
|
6,190,683
|
|
Commercial real estate - owner occupied
|
903,021
|
|
|
7,142
|
|
|
—
|
|
|
—
|
|
|
8,049
|
|
|
918,212
|
|
||||||
Commercial and business lending
|
6,998,869
|
|
|
7,744
|
|
|
409
|
|
|
249
|
|
|
101,624
|
|
|
7,108,895
|
|
||||||
Commercial real estate - investor
|
3,225,332
|
|
|
291
|
|
|
—
|
|
|
—
|
|
|
8,643
|
|
|
3,234,266
|
|
||||||
Real estate construction
|
1,160,909
|
|
|
270
|
|
|
26
|
|
|
—
|
|
|
940
|
|
|
1,162,145
|
|
||||||
Commercial real estate lending
|
4,386,241
|
|
|
561
|
|
|
26
|
|
|
—
|
|
|
9,583
|
|
|
4,396,411
|
|
||||||
Total commercial
|
11,385,110
|
|
|
8,305
|
|
|
435
|
|
|
249
|
|
|
111,207
|
|
|
11,505,306
|
|
||||||
Residential mortgage
|
5,726,855
|
|
|
4,491
|
|
|
439
|
|
|
—
|
|
|
51,482
|
|
|
5,783,267
|
|
||||||
Home equity
|
982,639
|
|
|
6,190
|
|
|
1,729
|
|
|
—
|
|
|
15,244
|
|
|
1,005,802
|
|
||||||
Other consumer
|
416,374
|
|
|
1,195
|
|
|
675
|
|
|
1,399
|
|
|
325
|
|
|
419,968
|
|
||||||
Total consumer
|
7,125,868
|
|
|
11,876
|
|
|
2,843
|
|
|
1,399
|
|
|
67,051
|
|
|
7,209,037
|
|
||||||
Total
|
$
|
18,510,978
|
|
|
$
|
20,181
|
|
|
$
|
3,278
|
|
|
$
|
1,648
|
|
|
$
|
178,258
|
|
|
$
|
18,714,343
|
|
(a)
|
The recorded investment in loans past due 90 days or more and still accruing totaled
$2 million
at
December 31, 2015
(the same as the reported balances for the accruing loans noted above).
|
(b)
|
Of the total nonaccrual loans,
$124 million
or
69%
were current with respect to payment at
December 31, 2015
.
|
|
Recorded
Investment |
|
Unpaid
Principal Balance |
|
Related
Allowance |
|
Average
Recorded Investment |
|
Interest
Income Recognized |
||||||||||
|
($ in Thousands)
|
||||||||||||||||||
Loans with a related allowance
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
30,866
|
|
|
$
|
31,402
|
|
|
$
|
675
|
|
|
$
|
30,915
|
|
|
$
|
443
|
|
Commercial real estate — owner occupied
|
10,746
|
|
|
10,917
|
|
|
622
|
|
|
10,904
|
|
|
189
|
|
|||||
Commercial and business lending
|
41,612
|
|
|
42,319
|
|
|
1,297
|
|
|
41,819
|
|
|
632
|
|
|||||
Commercial real estate — investor
|
21,983
|
|
|
22,782
|
|
|
694
|
|
|
22,387
|
|
|
943
|
|
|||||
Real estate construction
|
1,329
|
|
|
1,801
|
|
|
530
|
|
|
1,356
|
|
|
34
|
|
|||||
Commercial real estate lending
|
23,312
|
|
|
24,583
|
|
|
1,224
|
|
|
23,743
|
|
|
977
|
|
|||||
Total commercial
|
64,924
|
|
|
66,902
|
|
|
2,521
|
|
|
65,562
|
|
|
1,609
|
|
|||||
Residential mortgage
|
64,547
|
|
|
69,517
|
|
|
11,684
|
|
|
65,674
|
|
|
1,151
|
|
|||||
Home equity
|
20,668
|
|
|
22,613
|
|
|
9,741
|
|
|
21,092
|
|
|
535
|
|
|||||
Other consumer
|
1,286
|
|
|
1,346
|
|
|
254
|
|
|
1,316
|
|
|
18
|
|
|||||
Total consumer
|
86,501
|
|
|
93,476
|
|
|
21,679
|
|
|
88,082
|
|
|
1,704
|
|
|||||
Total loans
|
$
|
151,425
|
|
|
$
|
160,378
|
|
|
$
|
24,200
|
|
|
$
|
153,644
|
|
|
$
|
3,313
|
|
Loans with no related allowance
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
191,752
|
|
|
$
|
212,763
|
|
|
$
|
—
|
|
|
$
|
193,553
|
|
|
$
|
348
|
|
Commercial real estate — owner occupied
|
6,398
|
|
|
8,854
|
|
|
—
|
|
|
6,580
|
|
|
—
|
|
|||||
Commercial and business lending
|
198,150
|
|
|
221,617
|
|
|
—
|
|
|
200,133
|
|
|
348
|
|
|||||
Commercial real estate — investor
|
9,736
|
|
|
10,032
|
|
|
—
|
|
|
9,809
|
|
|
—
|
|
|||||
Real estate construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial real estate lending
|
9,736
|
|
|
10,032
|
|
|
—
|
|
|
9,809
|
|
|
—
|
|
|||||
Total commercial
|
207,886
|
|
|
231,649
|
|
|
—
|
|
|
209,942
|
|
|
348
|
|
|||||
Residential mortgage
|
6,067
|
|
|
6,331
|
|
|
—
|
|
|
6,138
|
|
|
96
|
|
|||||
Home equity
|
650
|
|
|
651
|
|
|
—
|
|
|
652
|
|
|
20
|
|
|||||
Other consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total consumer
|
6,717
|
|
|
6,982
|
|
|
—
|
|
|
6,790
|
|
|
116
|
|
|||||
Total loans
|
$
|
214,603
|
|
|
$
|
238,631
|
|
|
$
|
—
|
|
|
$
|
216,732
|
|
|
$
|
464
|
|
Total
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
222,618
|
|
|
$
|
244,165
|
|
|
$
|
675
|
|
|
$
|
224,468
|
|
|
$
|
791
|
|
Commercial real estate — owner occupied
|
17,144
|
|
|
19,771
|
|
|
622
|
|
|
17,484
|
|
|
189
|
|
|||||
Commercial and business lending
|
239,762
|
|
|
263,936
|
|
|
1,297
|
|
|
241,952
|
|
|
980
|
|
|||||
Commercial real estate — investor
|
31,719
|
|
|
32,814
|
|
|
694
|
|
|
32,196
|
|
|
943
|
|
|||||
Real estate construction
|
1,329
|
|
|
1,801
|
|
|
530
|
|
|
1,356
|
|
|
34
|
|
|||||
Commercial real estate lending
|
33,048
|
|
|
34,615
|
|
|
1,224
|
|
|
33,552
|
|
|
977
|
|
|||||
Total commercial
|
272,810
|
|
|
298,551
|
|
|
2,521
|
|
|
275,504
|
|
|
1,957
|
|
|||||
Residential mortgage
|
70,614
|
|
|
75,848
|
|
|
11,684
|
|
|
71,812
|
|
|
1,247
|
|
|||||
Home equity
|
21,318
|
|
|
23,264
|
|
|
9,741
|
|
|
21,744
|
|
|
555
|
|
|||||
Other consumer
|
1,286
|
|
|
1,346
|
|
|
254
|
|
|
1,316
|
|
|
18
|
|
|||||
Total consumer
|
93,218
|
|
|
100,458
|
|
|
21,679
|
|
|
94,872
|
|
|
1,820
|
|
|||||
Total loans
(a)
|
$
|
366,028
|
|
|
$
|
399,009
|
|
|
$
|
24,200
|
|
|
$
|
370,376
|
|
|
$
|
3,777
|
|
(a)
|
The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented
86%
of the unpaid principal balance at
June 30, 2016
.
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
|
($ in Thousands)
|
||||||||||||||||||
Loans with a related allowance
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
57,785
|
|
|
$
|
59,409
|
|
|
$
|
8,162
|
|
|
$
|
46,833
|
|
|
$
|
855
|
|
Commercial real estate — owner occupied
|
9,705
|
|
|
9,804
|
|
|
448
|
|
|
10,087
|
|
|
412
|
|
|||||
Commercial and business lending
|
67,490
|
|
|
69,213
|
|
|
8,610
|
|
|
56,920
|
|
|
1,267
|
|
|||||
Commercial real estate — investor
|
27,822
|
|
|
29,444
|
|
|
1,831
|
|
|
28,278
|
|
|
1,914
|
|
|||||
Real estate construction
|
1,450
|
|
|
2,154
|
|
|
453
|
|
|
1,667
|
|
|
66
|
|
|||||
Commercial real estate lending
|
29,272
|
|
|
31,598
|
|
|
2,284
|
|
|
29,945
|
|
|
1,980
|
|
|||||
Total commercial
|
96,762
|
|
|
100,811
|
|
|
10,894
|
|
|
86,865
|
|
|
3,247
|
|
|||||
Residential mortgage
|
66,590
|
|
|
71,084
|
|
|
12,462
|
|
|
68,183
|
|
|
2,374
|
|
|||||
Home equity
|
21,769
|
|
|
23,989
|
|
|
10,118
|
|
|
22,624
|
|
|
1,147
|
|
|||||
Other consumer
|
1,154
|
|
|
1,225
|
|
|
195
|
|
|
1,199
|
|
|
30
|
|
|||||
Total consumer
|
89,513
|
|
|
96,298
|
|
|
22,775
|
|
|
92,006
|
|
|
3,551
|
|
|||||
Total loans
|
$
|
186,275
|
|
|
$
|
197,109
|
|
|
$
|
33,669
|
|
|
$
|
178,871
|
|
|
$
|
6,798
|
|
Loans with no related allowance
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
65,083
|
|
|
$
|
72,259
|
|
|
$
|
—
|
|
|
$
|
79,573
|
|
|
$
|
1,657
|
|
Commercial real estate — owner occupied
|
6,221
|
|
|
6,648
|
|
|
—
|
|
|
6,534
|
|
|
15
|
|
|||||
Commercial and business lending
|
71,304
|
|
|
78,907
|
|
|
—
|
|
|
86,107
|
|
|
1,672
|
|
|||||
Commercial real estate — investor
|
2,736
|
|
|
2,840
|
|
|
—
|
|
|
2,763
|
|
|
90
|
|
|||||
Real estate construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial real estate lending
|
2,736
|
|
|
2,840
|
|
|
—
|
|
|
2,763
|
|
|
90
|
|
|||||
Total commercial
|
74,040
|
|
|
81,747
|
|
|
—
|
|
|
88,870
|
|
|
1,762
|
|
|||||
Residential mortgage
|
4,762
|
|
|
5,033
|
|
|
—
|
|
|
4,726
|
|
|
126
|
|
|||||
Home equity
|
544
|
|
|
544
|
|
|
—
|
|
|
544
|
|
|
30
|
|
|||||
Other consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total consumer
|
5,306
|
|
|
5,577
|
|
|
—
|
|
|
5,270
|
|
|
156
|
|
|||||
Total loans
|
$
|
79,346
|
|
|
$
|
87,324
|
|
|
$
|
—
|
|
|
$
|
94,140
|
|
|
$
|
1,918
|
|
Total
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
122,868
|
|
|
$
|
131,668
|
|
|
$
|
8,162
|
|
|
$
|
126,406
|
|
|
$
|
2,512
|
|
Commercial real estate — owner occupied
|
15,926
|
|
|
16,452
|
|
|
448
|
|
|
16,621
|
|
|
427
|
|
|||||
Commercial and business lending
|
138,794
|
|
|
148,120
|
|
|
8,610
|
|
|
143,027
|
|
|
2,939
|
|
|||||
Commercial real estate — investor
|
30,558
|
|
|
32,284
|
|
|
1,831
|
|
|
31,041
|
|
|
2,004
|
|
|||||
Real estate construction
|
1,450
|
|
|
2,154
|
|
|
453
|
|
|
1,667
|
|
|
66
|
|
|||||
Commercial real estate lending
|
32,008
|
|
|
34,438
|
|
|
2,284
|
|
|
32,708
|
|
|
2,070
|
|
|||||
Total commercial
|
170,802
|
|
|
182,558
|
|
|
10,894
|
|
|
175,735
|
|
|
5,009
|
|
|||||
Residential mortgage
|
71,352
|
|
|
76,117
|
|
|
12,462
|
|
|
72,909
|
|
|
2,500
|
|
|||||
Home equity
|
22,313
|
|
|
24,533
|
|
|
10,118
|
|
|
23,168
|
|
|
1,177
|
|
|||||
Other consumer
|
1,154
|
|
|
1,225
|
|
|
195
|
|
|
1,199
|
|
|
30
|
|
|||||
Total consumer
|
94,819
|
|
|
101,875
|
|
|
22,775
|
|
|
97,276
|
|
|
3,707
|
|
|||||
Total loans
(a)
|
$
|
265,621
|
|
|
$
|
284,433
|
|
|
$
|
33,669
|
|
|
$
|
273,011
|
|
|
$
|
8,716
|
|
(a)
|
The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented
82%
of the unpaid principal balance at
December 31, 2015
.
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
Performing
Restructured
Loans
|
|
Nonaccrual
Restructured
Loans
(a)
|
|
Performing
Restructured
Loans
|
|
Nonaccrual
Restructured
Loans
(a)
|
||||||||
|
($ in Thousands)
|
||||||||||||||
Commercial and industrial
|
$
|
29,179
|
|
|
$
|
2,536
|
|
|
$
|
29,293
|
|
|
$
|
1,714
|
|
Commercial real estate — owner occupied
|
7,509
|
|
|
2,620
|
|
|
7,877
|
|
|
2,703
|
|
||||
Commercial real estate — investor
|
20,191
|
|
|
957
|
|
|
21,915
|
|
|
3,936
|
|
||||
Real estate construction
|
372
|
|
|
94
|
|
|
510
|
|
|
177
|
|
||||
Residential mortgage
|
18,314
|
|
|
24,479
|
|
|
19,870
|
|
|
24,592
|
|
||||
Home equity
|
6,955
|
|
|
4,127
|
|
|
7,069
|
|
|
4,522
|
|
||||
Other consumer
|
906
|
|
|
28
|
|
|
829
|
|
|
40
|
|
||||
Total
|
$
|
83,426
|
|
|
$
|
34,841
|
|
|
$
|
87,363
|
|
|
$
|
37,684
|
|
(a)
|
Nonaccrual restructured loans have been included within nonaccrual loans.
|
|
Six Months Ended June 30, 2016
|
|
Six Months Ended June 30, 2015
|
||||||||||||||||||
|
Number
of
Loans
|
|
Recorded
Investment
(a)
|
|
Unpaid
Principal
Balance
(b)
|
|
Number
of
Loans
|
|
Recorded
Investment
(a)
|
|
Unpaid
Principal
Balance
(b)
|
||||||||||
|
($ in Thousands)
|
||||||||||||||||||||
Commercial and industrial
|
11
|
|
|
$
|
2,608
|
|
|
$
|
2,676
|
|
|
6
|
|
|
$
|
1,847
|
|
|
$
|
2,296
|
|
Commercial real estate — owner occupied
|
1
|
|
|
120
|
|
|
126
|
|
|
5
|
|
|
3,506
|
|
|
3,636
|
|
||||
Commercial real estate — investor
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2,237
|
|
|
2,237
|
|
||||
Real estate construction
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
6
|
|
|
6
|
|
||||
Residential mortgage
|
48
|
|
|
3,942
|
|
|
4,171
|
|
|
52
|
|
|
5,249
|
|
|
5,380
|
|
||||
Home equity
|
37
|
|
|
1,433
|
|
|
1,554
|
|
|
49
|
|
|
1,897
|
|
|
1,898
|
|
||||
Total
|
97
|
|
|
$
|
8,103
|
|
|
$
|
8,527
|
|
|
114
|
|
|
$
|
14,742
|
|
|
$
|
15,453
|
|
(a)
|
Represents post-modification outstanding recorded investment.
|
(b)
|
Represents pre-modification outstanding recorded investment.
|
|
Six Months Ended June 30, 2016
|
|
Six Months Ended June 30, 2015
|
||||||||||
|
Number of
Loans
|
|
Recorded
Investment
|
|
Number of
Loans
|
|
Recorded
Investment
|
||||||
|
($ in Thousands)
|
||||||||||||
Commercial and industrial
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
43
|
|
Commercial real estate — owner occupied
|
2
|
|
|
168
|
|
|
1
|
|
|
297
|
|
||
Residential mortgage
|
25
|
|
|
2,407
|
|
|
29
|
|
|
2,230
|
|
||
Home equity
|
11
|
|
|
164
|
|
|
22
|
|
|
1,001
|
|
||
Total
|
38
|
|
|
$
|
2,739
|
|
|
53
|
|
|
$
|
3,571
|
|
$ in Thousands
|
Commercial
and
industrial
|
|
Commercial
real estate
- owner
occupied
|
|
Commercial
real estate
- investor
|
|
Real estate
construction
|
|
Residential
mortgage
|
|
Home
equity
|
|
Other
consumer
|
|
Total
|
||||||||||||||||
December 31, 2015
|
$
|
129,959
|
|
|
$
|
18,680
|
|
|
$
|
43,018
|
|
|
$
|
25,266
|
|
|
$
|
28,261
|
|
|
$
|
23,555
|
|
|
$
|
5,525
|
|
|
$
|
274,264
|
|
Charge offs
|
(37,522
|
)
|
|
(106
|
)
|
|
(887
|
)
|
|
(330
|
)
|
|
(2,334
|
)
|
|
(2,702
|
)
|
|
(1,985
|
)
|
|
(45,866
|
)
|
||||||||
Recoveries
|
4,022
|
|
|
43
|
|
|
1,566
|
|
|
83
|
|
|
345
|
|
|
1,873
|
|
|
450
|
|
|
8,382
|
|
||||||||
Net charge offs
|
(33,500
|
)
|
|
(63
|
)
|
|
679
|
|
|
(247
|
)
|
|
(1,989
|
)
|
|
(829
|
)
|
|
(1,535
|
)
|
|
(37,484
|
)
|
||||||||
Provision for loan losses
|
38,128
|
|
|
(2,767
|
)
|
|
(2,666
|
)
|
|
(3,679
|
)
|
|
1,624
|
|
|
(1,224
|
)
|
|
1,584
|
|
|
31,000
|
|
||||||||
June 30, 2016
|
$
|
134,587
|
|
|
$
|
15,850
|
|
|
$
|
41,031
|
|
|
$
|
21,340
|
|
|
$
|
27,896
|
|
|
$
|
21,502
|
|
|
$
|
5,574
|
|
|
$
|
267,780
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
165
|
|
|
$
|
45
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
224
|
|
Collectively evaluated for impairment
|
134,587
|
|
|
15,685
|
|
|
40,986
|
|
|
21,340
|
|
|
27,882
|
|
|
21,502
|
|
|
5,574
|
|
|
267,556
|
|
||||||||
Total allowance for loan losses
|
$
|
134,587
|
|
|
$
|
15,850
|
|
|
$
|
41,031
|
|
|
$
|
21,340
|
|
|
$
|
27,896
|
|
|
$
|
21,502
|
|
|
$
|
5,574
|
|
|
$
|
267,780
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
191,752
|
|
|
$
|
7,790
|
|
|
$
|
10,036
|
|
|
$
|
—
|
|
|
$
|
6,800
|
|
|
$
|
650
|
|
|
$
|
—
|
|
|
$
|
217,028
|
|
Collectively evaluated for impairment
|
6,510,234
|
|
|
913,946
|
|
|
3,485,755
|
|
|
1,285,573
|
|
|
6,028,920
|
|
|
968,121
|
|
|
405,709
|
|
|
19,598,258
|
|
||||||||
Total loans
|
$
|
6,701,986
|
|
|
$
|
921,736
|
|
|
$
|
3,495,791
|
|
|
$
|
1,285,573
|
|
|
$
|
6,035,720
|
|
|
$
|
968,771
|
|
|
$
|
405,709
|
|
|
$
|
19,815,286
|
|
$ in Thousands
|
Commercial
and
industrial
|
|
Commercial
real estate
- owner
occupied
|
|
Commercial
real estate
- investor
|
|
Real estate
construction
|
|
Residential
mortgage
|
|
Home
equity
|
|
Other
consumer
|
|
Total
|
||||||||||||||||
December 31, 2014
|
$
|
117,635
|
|
|
$
|
16,510
|
|
|
$
|
46,333
|
|
|
$
|
20,999
|
|
|
$
|
31,926
|
|
|
$
|
26,464
|
|
|
$
|
6,435
|
|
|
$
|
266,302
|
|
Charge offs
|
(27,687
|
)
|
|
(2,645
|
)
|
|
(4,645
|
)
|
|
(750
|
)
|
|
(5,636
|
)
|
|
(7,048
|
)
|
|
(3,869
|
)
|
|
(52,280
|
)
|
||||||||
Recoveries
|
9,821
|
|
|
921
|
|
|
4,157
|
|
|
2,268
|
|
|
1,077
|
|
|
3,233
|
|
|
765
|
|
|
22,242
|
|
||||||||
Net charge offs
|
(17,866
|
)
|
|
(1,724
|
)
|
|
(488
|
)
|
|
1,518
|
|
|
(4,559
|
)
|
|
(3,815
|
)
|
|
(3,104
|
)
|
|
(30,038
|
)
|
||||||||
Provision for loan losses
|
30,190
|
|
|
3,894
|
|
|
(2,827
|
)
|
|
2,749
|
|
|
894
|
|
|
906
|
|
|
2,194
|
|
|
38,000
|
|
||||||||
December 31, 2015
|
$
|
129,959
|
|
|
$
|
18,680
|
|
|
$
|
43,018
|
|
|
$
|
25,266
|
|
|
$
|
28,261
|
|
|
$
|
23,555
|
|
|
$
|
5,525
|
|
|
$
|
274,264
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
7,522
|
|
|
$
|
—
|
|
|
$
|
229
|
|
|
$
|
—
|
|
|
$
|
166
|
|
|
$
|
46
|
|
|
$
|
—
|
|
|
$
|
7,963
|
|
Collectively evaluated for impairment
|
122,437
|
|
|
18,680
|
|
|
42,789
|
|
|
25,266
|
|
|
28,095
|
|
|
23,509
|
|
|
5,525
|
|
|
266,301
|
|
||||||||
Total allowance for loan losses
|
$
|
129,959
|
|
|
$
|
18,680
|
|
|
$
|
43,018
|
|
|
$
|
25,266
|
|
|
$
|
28,261
|
|
|
$
|
23,555
|
|
|
$
|
5,525
|
|
|
$
|
274,264
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
91,569
|
|
|
$
|
6,221
|
|
|
$
|
5,460
|
|
|
$
|
—
|
|
|
$
|
6,956
|
|
|
$
|
1,281
|
|
|
$
|
—
|
|
|
$
|
111,487
|
|
Collectively evaluated for impairment
|
6,099,114
|
|
|
911,991
|
|
|
3,228,806
|
|
|
1,162,145
|
|
|
5,776,311
|
|
|
1,004,521
|
|
|
419,968
|
|
|
18,602,856
|
|
||||||||
Total loans
|
$
|
6,190,683
|
|
|
$
|
918,212
|
|
|
$
|
3,234,266
|
|
|
$
|
1,162,145
|
|
|
$
|
5,783,267
|
|
|
$
|
1,005,802
|
|
|
$
|
419,968
|
|
|
$
|
18,714,343
|
|
|
Six Months Ended
June 30, 2016
|
|
Year Ended
December 31, 2015
|
||||
|
($ in Thousands)
|
||||||
Allowance for Unfunded Commitments:
|
|
|
|
||||
Balance at beginning of period
|
$
|
24,400
|
|
|
$
|
24,900
|
|
Provision for unfunded commitments
|
3,000
|
|
|
(500
|
)
|
||
Balance at end of period
|
$
|
27,400
|
|
|
$
|
24,400
|
|
|
Six Months Ended
June 30, 2016
|
|
Year Ended
December 31, 2015
|
||||
|
($ in Thousands)
|
||||||
Core deposit intangibles:
|
|
|
|
||||
Gross carrying amount
|
$
|
4,385
|
|
|
$
|
19,545
|
|
Accumulated amortization
|
(4,132
|
)
|
|
(19,152
|
)
|
||
Net book value
|
$
|
253
|
|
|
$
|
393
|
|
Amortization during the year
|
$
|
140
|
|
|
$
|
1,404
|
|
Other intangibles:
|
|
|
|
||||
Gross carrying amount
|
$
|
32,410
|
|
|
$
|
31,398
|
|
Accumulated amortization
|
(16,236
|
)
|
|
(15,333
|
)
|
||
Net book value
|
$
|
16,174
|
|
|
$
|
16,065
|
|
Additions during the period
|
$
|
1,012
|
|
|
$
|
12,115
|
|
Amortization during the year
|
$
|
903
|
|
|
$
|
1,690
|
|
|
Six Months Ended
June 30, 2016
|
|
Year Ended
December 31, 2015
|
||||
|
($ in Thousands)
|
||||||
Mortgage servicing rights:
|
|||||||
Mortgage servicing rights at beginning of period
|
$
|
62,150
|
|
|
$
|
61,379
|
|
Additions
|
4,149
|
|
|
12,372
|
|
||
Amortization
|
(5,896
|
)
|
|
(11,601
|
)
|
||
Mortgage servicing rights at end of period
|
$
|
60,403
|
|
|
$
|
62,150
|
|
Valuation allowance at beginning of period
|
(809
|
)
|
|
(1,234
|
)
|
||
(Additions) recoveries, net
|
(2,120
|
)
|
|
425
|
|
||
Valuation allowance at end of period
|
(2,929
|
)
|
|
(809
|
)
|
||
Mortgage servicing rights, net
|
$
|
57,474
|
|
|
$
|
61,341
|
|
Fair value of mortgage servicing rights
|
$
|
58,331
|
|
|
$
|
70,686
|
|
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”)
|
$
|
7,776,067
|
|
|
$
|
7,915,224
|
|
Mortgage servicing rights, net to servicing portfolio
|
0.74
|
%
|
|
0.77
|
%
|
||
Mortgage servicing rights expense (1)
|
$
|
8,016
|
|
|
$
|
11,176
|
|
(1)
|
Includes the amortization of mortgage servicing rights and additions / recoveries to the valuation allowance of mortgage servicing rights, and is a component of mortgage banking, net in the consolidated statements of income.
|
Estimated Amortization Expense
|
Core Deposit Intangibles
|
|
Other Intangibles
|
|
Mortgage Servicing Rights
|
||||||
|
($ in Thousands)
|
||||||||||
Six months ending December 31, 2016
|
$
|
141
|
|
|
$
|
909
|
|
|
$
|
6,255
|
|
2017
|
112
|
|
|
1,786
|
|
|
10,436
|
|
|||
2018
|
—
|
|
|
1,756
|
|
|
8,288
|
|
|||
2019
|
—
|
|
|
1,457
|
|
|
6,674
|
|
|||
2020
|
—
|
|
|
1,340
|
|
|
5,410
|
|
|||
2021
|
—
|
|
|
1,316
|
|
|
4,422
|
|
|||
Beyond 2021
|
—
|
|
|
7,610
|
|
|
18,918
|
|
|||
Total Estimated Amortization Expense
|
$
|
253
|
|
|
$
|
16,174
|
|
|
$
|
60,403
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
|
($ in Thousands)
|
||||||
Short-Term Funding
|
|
|
|
||||
Federal funds purchased
|
$
|
44,270
|
|
|
$
|
47,870
|
|
Securities sold under agreements to repurchase
|
464,880
|
|
|
383,568
|
|
||
Federal funds purchased and securities sold under agreements to repurchase
|
$
|
509,150
|
|
|
$
|
431,438
|
|
FHLB advances
|
1,326,000
|
|
|
335,000
|
|
||
Commercial paper
|
76,407
|
|
|
67,978
|
|
||
Other short-term funding
|
1,402,407
|
|
|
402,978
|
|
||
Total short-term funding
|
$
|
1,911,557
|
|
|
$
|
834,416
|
|
Long-Term Funding
|
|
|
|
||||
FHLB advances
|
$
|
3,015,207
|
|
|
$
|
1,750,225
|
|
Senior notes, at par
|
250,000
|
|
|
680,000
|
|
||
Subordinated notes, at par
|
250,000
|
|
|
250,000
|
|
||
Other long-term funding and capitalized costs
|
(3,732
|
)
|
|
(4,061
|
)
|
||
Total long-term funding
|
3,511,475
|
|
|
2,676,164
|
|
||
Total short and long-term funding
|
$
|
5,423,032
|
|
|
$
|
3,510,580
|
|
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||
June 30, 2016
|
Overnight and Continuous
|
Up to 30 days
|
30-90 days
|
Greater than 90 days
|
Total
|
||||||||||
|
|
|
($ in Thousands)
|
|
|
||||||||||
Repurchase agreements
|
|
|
|
|
|
||||||||||
GSE securities
|
$
|
464,880
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
464,880
|
|
Total
|
$
|
464,880
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
464,880
|
|
December 31, 2015
|
|
|
|
|
|
||||||||||
Repurchase agreements
|
|
|
|
|
|
||||||||||
GSE securities
|
$
|
383,568
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
383,568
|
|
Total
|
$
|
383,568
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
383,568
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||||||
($ in Thousands)
|
Notional Amount
|
|
Fair
Value
|
|
Balance Sheet
Category
|
|
Notional Amount
|
|
Fair
Value |
|
Balance Sheet
Category |
||||||||
Interest rate-related instruments — customer and mirror
|
$
|
1,829,842
|
|
|
$
|
56,334
|
|
|
Trading assets
|
|
$
|
1,665,965
|
|
|
$
|
29,391
|
|
|
Trading assets
|
Interest rate-related instruments — customer and mirror
|
1,829,842
|
|
|
(59,255
|
)
|
|
Trading liabilities
|
|
1,665,965
|
|
|
(30,886
|
)
|
|
Trading liabilities
|
||||
Interest rate lock commitments (mortgage)
|
530,571
|
|
|
4,270
|
|
|
Other assets
|
|
271,530
|
|
|
958
|
|
|
Other assets
|
||||
Forward commitments (mortgage)
|
353,185
|
|
|
(4,205
|
)
|
|
Other liabilities
|
|
231,798
|
|
|
403
|
|
|
Other assets
|
||||
Foreign currency exchange forwards
|
99,074
|
|
|
3,159
|
|
|
Trading assets
|
|
72,976
|
|
|
1,532
|
|
|
Trading assets
|
||||
Foreign currency exchange forwards
|
92,457
|
|
|
(3,073
|
)
|
|
Trading liabilities
|
|
65,649
|
|
|
(1,398
|
)
|
|
Trading liabilities
|
||||
Commodity contracts
|
109,971
|
|
|
17,619
|
|
|
Trading assets
|
|
44,380
|
|
|
1,269
|
|
|
Trading assets
|
||||
Commodity contracts
|
110,457
|
|
|
(17,138
|
)
|
|
Trading liabilities
|
|
44,256
|
|
|
(1,146
|
)
|
|
Trading liabilities
|
||||
Purchased options (time deposit)
|
101,421
|
|
|
2,336
|
|
|
Other assets
|
|
104,582
|
|
|
2,715
|
|
|
Other assets
|
||||
Written options (time deposit)
|
101,421
|
|
|
(2,336
|
)
|
|
Other liabilities
|
|
104,582
|
|
|
(2,715
|
)
|
|
Other liabilities
|
|
Income Statement Category of
Gain / (Loss) Recognized in Income
|
For the Six Months Ended June 30,
|
||||||
($ in Thousands)
|
|
2016
|
|
2015
|
||||
Derivative Instruments:
|
|
|
|
|
||||
Interest rate-related instruments — customer and mirror, net
|
Capital market fees, net
|
$
|
(1,426
|
)
|
|
$
|
255
|
|
Interest rate lock commitments (mortgage)
|
Mortgage banking, net
|
3,312
|
|
|
(870
|
)
|
||
Forward commitments (mortgage)
|
Mortgage banking, net
|
(4,608
|
)
|
|
5,204
|
|
||
Foreign currency exchange forwards
|
Capital market fees, net
|
(48
|
)
|
|
128
|
|
||
Commodity contracts
|
Capital market fees, net
|
358
|
|
|
—
|
|
|
Gross
amounts
recognized
|
|
|
|
Gross amounts not offset
in the balance sheet
|
|
|
||||||||||||||||
|
Gross amounts
offset in the
balance sheet
|
|
Net amounts
presented in
the balance sheet
|
|
Financial
instruments
|
|
Collateral
|
|
Net amount
|
||||||||||||||
|
($ in Thousands)
|
|
|
||||||||||||||||||||
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest and commodity agreements
|
$
|
3,919
|
|
|
$
|
—
|
|
|
$
|
3,919
|
|
|
$
|
(3,919
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest and commodity agreements
|
$
|
71,741
|
|
|
$
|
—
|
|
|
$
|
71,741
|
|
|
$
|
(3,919
|
)
|
|
$
|
(67,822
|
)
|
|
$
|
—
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest and commodity instruments
|
$
|
1,466
|
|
|
$
|
—
|
|
|
$
|
1,466
|
|
|
$
|
(1,466
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest and commodity instruments
|
$
|
30,200
|
|
|
$
|
—
|
|
|
$
|
30,200
|
|
|
$
|
(1,466
|
)
|
|
$
|
(28,734
|
)
|
|
$
|
—
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
|
($ in Thousands)
|
||||||
Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale(1)(2)
|
$
|
7,399,847
|
|
|
$
|
7,402,518
|
|
Commercial letters of credit(1)
|
7,100
|
|
|
9,945
|
|
||
Standby letters of credit(3)
|
285,118
|
|
|
296,508
|
|
1)
|
These off-balance sheet financial instruments are exercisable at the market rate prevailing at the date the underlying transaction will be completed and, thus, are deemed to have no current fair value, or the fair value is based on fees currently charged to enter into similar agreements and is not material at
June 30, 2016
or
December 31, 2015
.
|
2)
|
Interest rate lock commitments to originate residential mortgage loans held for sale are considered derivative instruments and are disclosed in Note
10
.
|
3)
|
The Corporation has established a liability of
$3 million
at both
June 30, 2016
and
December 31, 2015
, as an estimate of the fair value of these financial instruments.
|
|
For the Six Months Ended
June 30, 2016 |
|
For the Year Ended
December 31, 2015
|
||||
|
($ in Thousands)
|
||||||
Balance at beginning of period
|
$
|
1,197
|
|
|
$
|
3,258
|
|
Repurchase provision expense
|
155
|
|
|
428
|
|
||
Adjustments to provision expense
|
—
|
|
|
(2,450
|
)
|
||
Charge offs, net
|
(6
|
)
|
|
(39
|
)
|
||
Balance at end of period
|
$
|
1,346
|
|
|
$
|
1,197
|
|
|
Fair Value Hierarchy
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
|
|
|
($ in Thousands)
|
||||||
Assets:
|
|
|
|
|
|
||||
Investment securities available for sale:
|
|
|
|
|
|
||||
U.S. Treasury securities
|
Level 1
|
|
$
|
1,001
|
|
|
$
|
997
|
|
Residential mortgage-related securities:
|
|
|
|
|
|
||||
FNMA / FHLMC
|
Level 2
|
|
990,379
|
|
|
1,414,626
|
|
||
GNMA
|
Level 2
|
|
1,677,246
|
|
|
1,590,003
|
|
||
Private-label
|
Level 2
|
|
1,410
|
|
|
1,709
|
|
||
GNMA commercial mortgage-related securities
|
Level 2
|
|
2,126,921
|
|
|
1,955,310
|
|
||
Other securities (debt and equity)
|
Level 1
|
|
1,609
|
|
|
1,569
|
|
||
Other securities (debt and equity)
|
Level 2
|
|
3,000
|
|
|
3,000
|
|
||
Other securities (debt and equity)
|
Level 3
|
|
200
|
|
|
200
|
|
||
Total investment securities available for sale
|
Level 1
|
|
2,610
|
|
|
2,566
|
|
||
Total investment securities available for sale
|
Level 2
|
|
4,798,956
|
|
|
4,964,648
|
|
||
Total investment securities available for sale
|
Level 3
|
|
200
|
|
|
200
|
|
||
Interest rate-related instruments
|
Level 2
|
|
56,334
|
|
|
29,391
|
|
||
Foreign currency exchange forwards
|
Level 2
|
|
3,159
|
|
|
1,532
|
|
||
Interest rate lock commitments to originate residential mortgage loans held for sale
|
Level 3
|
|
4,270
|
|
|
958
|
|
||
Forward commitments to sell residential mortgage loans
|
Level 3
|
|
—
|
|
|
403
|
|
||
Commodity contracts
|
Level 2
|
|
17,619
|
|
|
1,269
|
|
||
Purchased options (time deposit)
|
Level 2
|
|
2,336
|
|
|
2,715
|
|
||
Liabilities:
|
|
|
|
|
|
||||
Interest rate-related instruments
|
Level 2
|
|
$
|
59,255
|
|
|
$
|
30,886
|
|
Foreign currency exchange forwards
|
Level 2
|
|
3,073
|
|
|
1,398
|
|
||
Forward commitments to sell residential mortgage loans
|
Level 3
|
|
4,205
|
|
|
—
|
|
||
Commodity contracts
|
Level 2
|
|
17,138
|
|
|
1,146
|
|
||
Written options (time deposit)
|
Level 2
|
|
2,336
|
|
|
2,715
|
|
|
Investment Securities
Available for Sale
|
|
Derivative Financial
Instruments
|
||||
|
($ in Thousands)
|
||||||
Balance December 31, 2014
|
$
|
200
|
|
|
$
|
(488
|
)
|
Total net gains included in income:
|
|
|
|
||||
Mortgage derivative gain
|
—
|
|
|
1,849
|
|
||
Balance December 31, 2015
|
$
|
200
|
|
|
$
|
1,361
|
|
Total net losses included in income:
|
|
|
|
||||
Mortgage derivative loss
|
—
|
|
|
(1,296
|
)
|
||
Balance June 30, 2016
|
$
|
200
|
|
|
$
|
65
|
|
(1)
|
Loans held for sale are carried at the lower of cost or estimated fair value. At
June 30, 2016
, the estimated fair value exceeded the cost and therefore there was no adjustment recognized in the Consolidated Statements of Income.
|
(2)
|
Represents individually evaluated impaired loans, net of the related allowance for loan losses.
|
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
Fair Value Hierarchy Level
|
|
Carrying Amount
|
|
Fair Value
|
|
Carrying Amount
|
|
Fair Value
|
||||||||
|
|
|
|||||||||||||||
|
|
|
($ in Thousands)
|
||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and due from banks
|
Level 1
|
|
$
|
333,000
|
|
|
$
|
333,000
|
|
|
$
|
374,921
|
|
|
$
|
374,921
|
|
Interest-bearing deposits in other financial institutions
|
Level 1
|
|
131,680
|
|
|
131,680
|
|
|
79,764
|
|
|
79,764
|
|
||||
Federal funds sold and securities purchased under agreements to resell
|
Level 1
|
|
13,200
|
|
|
13,200
|
|
|
19,000
|
|
|
19,000
|
|
||||
Investment securities held to maturity
|
Level 2
|
|
1,236,140
|
|
|
1,278,855
|
|
|
1,168,230
|
|
|
1,184,442
|
|
||||
Investment securities available for sale
|
Level 1
|
|
2,610
|
|
|
2,610
|
|
|
2,566
|
|
|
2,566
|
|
||||
Investment securities available for sale
|
Level 2
|
|
4,798,956
|
|
|
4,798,956
|
|
|
4,964,648
|
|
|
4,964,648
|
|
||||
Investment securities available for sale
|
Level 3
|
|
200
|
|
|
200
|
|
|
200
|
|
|
200
|
|
||||
FHLB and Federal Reserve Bank stocks
|
Level 2
|
|
194,501
|
|
|
194,501
|
|
|
147,240
|
|
|
147,240
|
|
||||
Loans held for sale
|
Level 2
|
|
284,376
|
|
|
289,748
|
|
|
124,915
|
|
|
124,915
|
|
||||
Loans, net
|
Level 3
|
|
19,547,506
|
|
|
19,603,484
|
|
|
18,440,079
|
|
|
18,389,832
|
|
||||
Bank owned life insurance
|
Level 2
|
|
582,580
|
|
|
582,580
|
|
|
583,019
|
|
|
583,019
|
|
||||
Derivatives (trading and other assets)
|
Level 2
|
|
79,448
|
|
|
79,448
|
|
|
34,907
|
|
|
34,907
|
|
||||
Derivatives (trading and other assets)
|
Level 3
|
|
4,270
|
|
|
4,270
|
|
|
1,361
|
|
|
1,361
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts
|
Level 3
|
|
$
|
18,728,818
|
|
|
$
|
18,728,818
|
|
|
$
|
19,444,863
|
|
|
$
|
19,444,863
|
|
Brokered CDs and other time deposits
|
Level 2
|
|
1,564,032
|
|
|
1,574,368
|
|
|
1,562,802
|
|
|
1,564,464
|
|
||||
Short-term funding
|
Level 2
|
|
1,911,557
|
|
|
1,911,557
|
|
|
834,416
|
|
|
834,416
|
|
||||
Long-term funding
|
Level 2
|
|
3,511,475
|
|
|
3,579,398
|
|
|
2,676,164
|
|
|
2,728,112
|
|
||||
Standby letters of credit (1)
|
Level 2
|
|
2,759
|
|
|
2,759
|
|
|
2,954
|
|
|
2,954
|
|
||||
Derivatives (trading and other liabilities)
|
Level 2
|
|
81,802
|
|
|
81,802
|
|
|
36,145
|
|
|
36,145
|
|
||||
Derivatives (trading and other liabilities)
|
Level 3
|
|
4,205
|
|
|
4,205
|
|
|
—
|
|
|
—
|
|
(1)
|
The commitment on standby letters of credit was
$285 million
and
$297 million
at
June 30, 2016
and
December 31, 2015
, respectively. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
2016
|
|
2015
|
||||||||
|
($ in Thousands)
|
|||||||||||||
Components of Net Periodic Benefit Cost
|
|
|
|
|
|
|
||||||||
Pension Plan:
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
1,725
|
|
|
$
|
3,062
|
|
$
|
3,450
|
|
|
$
|
6,125
|
|
Interest cost
|
1,780
|
|
|
1,643
|
|
3,560
|
|
|
3,285
|
|
||||
Expected return on plan assets
|
(5,065
|
)
|
|
(5,350
|
)
|
(10,130
|
)
|
|
(10,700
|
)
|
||||
Amortization of prior service cost
|
12
|
|
|
12
|
|
25
|
|
|
25
|
|
||||
Amortization of actuarial loss
|
483
|
|
|
533
|
|
965
|
|
|
1,065
|
|
||||
Total net periodic pension cost
|
$
|
(1,065
|
)
|
|
$
|
(100
|
)
|
$
|
(2,130
|
)
|
|
$
|
(200
|
)
|
Postretirement Plan:
|
|
|
|
|
|
|
||||||||
Interest cost
|
$
|
36
|
|
|
$
|
35
|
|
$
|
72
|
|
|
$
|
70
|
|
Total net periodic benefit cost
|
$
|
36
|
|
|
$
|
35
|
|
$
|
72
|
|
|
$
|
70
|
|
Segment Income Statement Data
|
|
|
|
|
|
|
|
||||||||
($ in Thousands)
|
Corporate and
Commercial
Specialty
|
|
Community,
Consumer, and
Business
|
|
Risk Management
and Shared Services
|
|
Consolidated
Total
|
||||||||
Six Months Ended June 30, 2016
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
159,233
|
|
|
$
|
170,574
|
|
|
$
|
18,897
|
|
|
$
|
348,704
|
|
Noninterest income
|
22,549
|
|
|
128,880
|
|
|
13,931
|
|
|
165,360
|
|
||||
Total revenue
|
181,782
|
|
|
299,454
|
|
|
32,828
|
|
|
514,064
|
|
||||
Credit provision*
|
27,853
|
|
|
12,388
|
|
|
(6,241
|
)
|
|
34,000
|
|
||||
Noninterest expense
|
71,543
|
|
|
243,260
|
|
|
33,528
|
|
|
348,331
|
|
||||
Income before income taxes
|
82,386
|
|
|
43,806
|
|
|
5,541
|
|
|
131,733
|
|
||||
Income tax expense (benefit)
|
27,716
|
|
|
15,332
|
|
|
(2,940
|
)
|
|
40,108
|
|
||||
Net income
|
$
|
54,670
|
|
|
$
|
28,474
|
|
|
$
|
8,481
|
|
|
$
|
91,625
|
|
Return on average allocated capital (ROCET1)**
|
10.5
|
%
|
|
9.1
|
%
|
|
3.7
|
%
|
|
9.2
|
%
|
||||
Six Months Ended June 30, 2015
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
151,846
|
|
|
$
|
173,742
|
|
|
$
|
8,713
|
|
|
$
|
334,301
|
|
Noninterest income
|
24,918
|
|
|
134,874
|
|
|
6,503
|
|
|
166,295
|
|
||||
Total revenue
|
176,764
|
|
|
308,616
|
|
|
15,216
|
|
|
500,596
|
|
||||
Credit provision*
|
19,460
|
|
|
13,663
|
|
|
(23,623
|
)
|
|
9,500
|
|
||||
Noninterest expense
|
69,350
|
|
|
243,760
|
|
|
37,659
|
|
|
350,769
|
|
||||
Income before income taxes
|
87,954
|
|
|
51,193
|
|
|
1,180
|
|
|
140,327
|
|
||||
Income tax expense (benefit)
|
30,429
|
|
|
17,918
|
|
|
(4,092
|
)
|
|
44,255
|
|
||||
Net income
|
$
|
57,525
|
|
|
$
|
33,275
|
|
|
$
|
5,272
|
|
|
$
|
96,072
|
|
Return on average allocated capital (ROCET1)**
|
12.1
|
%
|
|
10.4
|
%
|
|
2.4
|
%
|
|
10.4
|
%
|
Segment Balance Sheet Data
|
|
|
|
|
|
|
|
||||||||
($ in Thousands)
|
Corporate and
Commercial
Specialty
|
|
Community,
Consumer, and
Business
|
|
Risk Management
and Shared Services
|
|
Consolidated
Total
|
||||||||
Average Balances for YTD June 2016
|
|
|
|
|
|
|
|
||||||||
Average earning assets
|
$
|
9,924,378
|
|
|
$
|
9,222,677
|
|
|
$
|
6,473,156
|
|
|
$
|
25,620,211
|
|
Average loans
|
9,913,591
|
|
|
9,221,370
|
|
|
147,447
|
|
|
19,282,408
|
|
||||
Average deposits
|
5,744,533
|
|
|
11,215,704
|
|
|
3,471,729
|
|
|
20,431,966
|
|
||||
Average allocated capital (CET1)**
|
$
|
1,049,431
|
|
|
$
|
630,520
|
|
|
$
|
224,910
|
|
|
$
|
1,904,861
|
|
Average Balances for YTD June 2015
|
|
|
|
|
|
|
|
||||||||
Average earning assets
|
$
|
9,321,388
|
|
|
$
|
8,618,054
|
|
|
$
|
6,268,081
|
|
|
$
|
24,207,523
|
|
Average loans
|
9,311,672
|
|
|
8,618,054
|
|
|
73,015
|
|
|
18,002,741
|
|
||||
Average deposits
|
5,571,627
|
|
|
10,693,412
|
|
|
3,077,242
|
|
|
19,342,281
|
|
||||
Average allocated capital (CET1)**
|
$
|
955,799
|
|
|
$
|
643,796
|
|
|
$
|
212,466
|
|
|
$
|
1,812,061
|
|
Segment Income Statement Data
|
|
|
|
|
|
|
|
||||||||
($ in Thousands)
|
Corporate and
Commercial
Specialty
|
|
Community,
Consumer, and
Business
|
|
Risk Management
and Shared Services
|
|
Consolidated
Total
|
||||||||
Three Months Ended June 30, 2016
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
80,069
|
|
|
$
|
84,969
|
|
|
$
|
11,679
|
|
|
$
|
176,717
|
|
Noninterest income
|
10,936
|
|
|
65,132
|
|
|
6,100
|
|
|
82,168
|
|
||||
Total revenue
|
91,005
|
|
|
150,101
|
|
|
17,779
|
|
|
258,885
|
|
||||
Credit provision*
|
15,114
|
|
|
6,246
|
|
|
(7,360
|
)
|
|
14,000
|
|
||||
Noninterest expense
|
37,140
|
|
|
121,965
|
|
|
15,255
|
|
|
174,360
|
|
||||
Income before income taxes
|
38,751
|
|
|
21,890
|
|
|
9,884
|
|
|
70,525
|
|
||||
Income tax expense
|
13,137
|
|
|
7,662
|
|
|
635
|
|
|
21,434
|
|
||||
Net income
|
$
|
25,614
|
|
|
$
|
14,228
|
|
|
$
|
9,249
|
|
|
$
|
49,091
|
|
Return on average allocated capital (ROCET1)**
|
9.7
|
%
|
|
9.0
|
%
|
|
13.4
|
%
|
|
9.9
|
%
|
||||
Three Months Ended June 30, 2015
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
76,155
|
|
|
$
|
87,385
|
|
|
$
|
2,948
|
|
|
$
|
166,488
|
|
Noninterest income
|
12,305
|
|
|
69,530
|
|
|
4,647
|
|
|
86,482
|
|
||||
Total revenue
|
88,460
|
|
|
156,915
|
|
|
7,595
|
|
|
252,970
|
|
||||
Credit provision*
|
9,935
|
|
|
6,592
|
|
|
(11,527
|
)
|
|
5,000
|
|
||||
Noninterest expense
|
34,889
|
|
|
125,387
|
|
|
16,501
|
|
|
176,777
|
|
||||
Income before income taxes
|
43,636
|
|
|
24,936
|
|
|
2,621
|
|
|
71,193
|
|
||||
Income tax expense (benefit)
|
15,061
|
|
|
8,728
|
|
|
(1,996
|
)
|
|
21,793
|
|
||||
Net income
|
$
|
28,575
|
|
|
$
|
16,208
|
|
|
$
|
4,617
|
|
|
$
|
49,400
|
|
Return on average allocated capital (ROCET1)**
|
11.8
|
%
|
|
10.2
|
%
|
|
5.8
|
%
|
|
10.5
|
%
|
Segment Balance Sheet Data
|
|
|
|
|
|
|
|
||||||||
($ in Thousands)
|
Corporate and
Commercial
Specialty
|
|
Community,
Consumer, and
Business
|
|
Risk Management
and Shared Services
|
|
Consolidated
Total
|
||||||||
Average Balances for 2Q16
|
|
|
|
|
|
|
|
||||||||
Average earning assets
|
$
|
10,128,726
|
|
|
$
|
9,325,036
|
|
|
$
|
6,514,287
|
|
|
$
|
25,968,049
|
|
Average loans
|
10,115,959
|
|
|
9,323,720
|
|
|
202,306
|
|
|
19,641,985
|
|
||||
Average deposits
|
5,570,919
|
|
|
11,331,214
|
|
|
3,386,820
|
|
|
20,288,953
|
|
||||
Average allocated capital (CET1)**
|
$
|
1,067,203
|
|
|
$
|
633,829
|
|
|
$
|
212,209
|
|
|
$
|
1,913,241
|
|
Average Balances for 2Q15
|
|
|
|
|
|
|
|
||||||||
Average earning assets
|
$
|
9,422,805
|
|
|
$
|
8,709,691
|
|
|
$
|
6,133,871
|
|
|
$
|
24,266,367
|
|
Average loans
|
9,411,245
|
|
|
8,709,691
|
|
|
67,369
|
|
|
18,188,305
|
|
||||
Average deposits
|
5,720,064
|
|
|
10,862,330
|
|
|
3,043,816
|
|
|
19,626,210
|
|
||||
Average allocated capital (CET1)**
|
$
|
968,690
|
|
|
$
|
640,256
|
|
|
$
|
210,873
|
|
|
$
|
1,819,819
|
|
* The consolidated credit provision is equal to the actual reported provision for credit losses.
|
|||||||||||||||
** The Federal Reserve establishes capital adequacy requirements for the Corporation, including Tier 1 capital. Tier 1 capital is comprised of common capital and certain redeemable, non-cumulative preferred stock. Average allocated capital represents average common equity Tier 1 which is defined as average Tier 1 capital excluding qualifying perpetual preferred stock and qualifying trust preferred securities. For segment reporting purposes, the ROCET1, a non-GAAP financial measure, reflects return on average allocated common equity Tier 1 (“CET1”). The ROCET1 for the Risk Management and Shared Services segment and the Consolidated Total is inclusive of the annualized effect of the preferred stock dividends.
|
($ in Thousands)
|
Investments
Securities Available For Sale |
|
Defined Benefit
Pension and Post Retirement Obligations |
|
Accumulated
Other Comprehensive Income (Loss) |
||||||
Balance January 1, 2016
|
$
|
459
|
|
|
$
|
(33,075
|
)
|
|
$
|
(32,616
|
)
|
Other comprehensive income before reclassifications
|
82,743
|
|
|
—
|
|
|
82,743
|
|
|||
Amounts reclassified from accumulated other comprehensive income (loss):
|
|
|
|
|
|
||||||
Investment securities gain, net
|
(6,214
|
)
|
|
—
|
|
|
(6,214
|
)
|
|||
Personnel expense
|
—
|
|
|
990
|
|
|
990
|
|
|||
Interest income (Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities)
|
(3,024
|
)
|
|
—
|
|
|
(3,024
|
)
|
|||
Income tax expense
|
(28,048
|
)
|
|
(378
|
)
|
|
(28,426
|
)
|
|||
Net other comprehensive income during period
|
45,457
|
|
|
612
|
|
|
46,069
|
|
|||
Balance June 30, 2016
|
$
|
45,916
|
|
|
$
|
(32,463
|
)
|
|
$
|
13,453
|
|
Balance January 1, 2015
|
$
|
18,512
|
|
|
$
|
(23,362
|
)
|
|
$
|
(4,850
|
)
|
Other comprehensive income before reclassifications
|
12,194
|
|
|
—
|
|
|
12,194
|
|
|||
Amounts reclassified from accumulated other comprehensive income (loss):
|
|
|
|
|
|
||||||
Investment securities gain, net
|
(1,242
|
)
|
|
—
|
|
|
(1,242
|
)
|
|||
Personnel expense
|
—
|
|
|
1,090
|
|
|
1,090
|
|
|||
Income tax expense
|
(4,182
|
)
|
|
(416
|
)
|
|
(4,598
|
)
|
|||
Net other comprehensive income during period
|
6,770
|
|
|
674
|
|
|
7,444
|
|
|||
Balance June 30, 2015
|
$
|
25,282
|
|
|
$
|
(22,688
|
)
|
|
$
|
2,594
|
|
|
|
|
|
|
|
||||||
($ in Thousands)
|
Investments
Securities Available For Sale |
|
Defined Benefit
Pension and Post Retirement Obligations |
|
Accumulated
Other Comprehensive Income (Loss) |
||||||
Balance April 1, 2016
|
$
|
34,936
|
|
|
$
|
(32,769
|
)
|
|
$
|
2,167
|
|
Other comprehensive income before reclassifications
|
22,321
|
|
|
—
|
|
|
22,321
|
|
|||
Amounts reclassified from accumulated other comprehensive income (loss):
|
|
|
|
|
|
||||||
Investment securities gain, net
|
(3,116
|
)
|
|
—
|
|
|
(3,116
|
)
|
|||
Personnel expense
|
—
|
|
|
495
|
|
|
495
|
|
|||
Interest income (Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities)
|
(1,452
|
)
|
|
—
|
|
|
(1,452
|
)
|
|||
Income tax expense
|
(6,773
|
)
|
|
(189
|
)
|
|
(6,962
|
)
|
|||
Net other comprehensive income during period
|
10,980
|
|
|
306
|
|
|
11,286
|
|
|||
Balance June 30, 2016
|
$
|
45,916
|
|
|
$
|
(32,463
|
)
|
|
$
|
13,453
|
|
Balance April 1, 2015
|
$
|
47,825
|
|
|
$
|
(23,025
|
)
|
|
$
|
24,800
|
|
Other comprehensive loss before reclassifications
|
(35,224
|
)
|
|
—
|
|
|
(35,224
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income (loss):
|
|
|
|
|
|
||||||
Investment securities gain, net
|
(1,242
|
)
|
|
—
|
|
|
(1,242
|
)
|
|||
Personnel expense
|
—
|
|
|
545
|
|
|
545
|
|
|||
Income tax (expense) benefit
|
13,923
|
|
|
(208
|
)
|
|
13,715
|
|
|||
Net other comprehensive income (loss) during period
|
(22,543
|
)
|
|
337
|
|
|
(22,206
|
)
|
|||
Balance June 30, 2015
|
$
|
25,282
|
|
|
$
|
(22,688
|
)
|
|
$
|
2,594
|
|
ITEM 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Average loans of
$19.6 billion
grew $719 million, or 4% from the first quarter, total commercial lending accounted for 75% of the quarter average loan growth. Average deposits of $20.3 billion declined $286 million, or 1% from the first quarter. For the remainder of 2016, the Corporation expects high single digit annual average loan growth and to maintain the loan to deposit ratio under 100%.
|
•
|
Net interest income of
$177 million
was $5 million, or 3% higher than the prior quarter. Net interest margin of
2.81%
was stable with the first quarter. In the absence of Federal Reserve action to raise rates, the Corporation expects net interest margin to be approximately flat.
|
•
|
Provision for credit losses of $14 million was down $6 million from the first quarter. For the remainder of 2016, the Corporation expects the provision for loan losses will change based on loan growth and changes in risk grade or other indications of credit quality.
|
•
|
Noninterest income of
$82 million
decreased $1 million from the prior quarter. The Corporation expects noninterest income to be approximately flat to the prior year.
|
•
|
Noninterest expense of
$174 million
was flat from the prior quarter. The Corporation expects noninterest expense to be approximately flat to the prior year.
|
|
YTD
Jun 2016 |
YTD
Jun 2015 |
2nd Qtr 2016
|
1st Qtr
2016
|
4th Qtr 2015
|
3rd Qtr 2015
|
2nd Qtr 2015
|
||||||||||||||
Net income
|
$
|
91,625
|
|
$
|
96,072
|
|
$
|
49,091
|
|
$
|
42,534
|
|
$
|
42,791
|
|
$
|
49,438
|
|
$
|
49,400
|
|
Net income available to common equity
|
$
|
87,258
|
|
$
|
93,299
|
|
$
|
46,922
|
|
$
|
40,336
|
|
$
|
40,593
|
|
$
|
47,254
|
|
$
|
47,855
|
|
Earnings per common share - basic
|
$
|
0.58
|
|
$
|
0.62
|
|
$
|
0.31
|
|
$
|
0.27
|
|
$
|
0.27
|
|
$
|
0.31
|
|
$
|
0.32
|
|
Earnings per common share - diluted
|
$
|
0.58
|
|
$
|
0.61
|
|
$
|
0.31
|
|
$
|
0.27
|
|
$
|
0.27
|
|
$
|
0.31
|
|
$
|
0.31
|
|
Effective tax rate
|
30.45
|
%
|
31.54
|
%
|
30.39
|
%
|
30.51
|
%
|
26.82
|
%
|
30.36
|
%
|
30.61
|
%
|
|
Six months ended June 30,
|
||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||
|
Average
Balance
|
|
Interest
Income /
Expense
|
|
Average
Yield /
Rate
|
|
Average
Balance |
|
Interest
Income / Expense |
|
Average
Yield / Rate |
||||||||||
|
($ in Thousands)
|
||||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans:(1)(2)(3)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and business lending
|
$
|
7,297,847
|
|
|
$
|
116,310
|
|
|
3.20
|
%
|
|
$
|
7,080,723
|
|
|
$
|
112,244
|
|
|
3.19
|
%
|
Commercial real estate lending
|
4,561,821
|
|
|
79,158
|
|
|
3.49
|
%
|
|
4,125,972
|
|
|
72,091
|
|
|
3.52
|
%
|
||||
Total commercial
|
11,859,668
|
|
|
195,468
|
|
|
3.31
|
%
|
|
11,206,695
|
|
|
184,335
|
|
|
3.32
|
%
|
||||
Residential mortgage
|
6,025,102
|
|
|
96,130
|
|
|
3.19
|
%
|
|
5,321,942
|
|
|
87,919
|
|
|
3.31
|
%
|
||||
Retail
|
1,397,638
|
|
|
33,054
|
|
|
4.74
|
%
|
|
1,474,104
|
|
|
33,938
|
|
|
4.62
|
%
|
||||
Total loans
|
19,282,408
|
|
|
324,652
|
|
|
3.38
|
%
|
|
18,002,741
|
|
|
306,192
|
|
|
3.42
|
%
|
||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
5,000,754
|
|
|
49,786
|
|
|
1.99
|
%
|
|
4,782,809
|
|
|
48,960
|
|
|
2.05
|
%
|
||||
Tax-exempt(1)
|
1,054,731
|
|
|
24,057
|
|
|
4.56
|
%
|
|
946,161
|
|
|
23,642
|
|
|
5.00
|
%
|
||||
Other short-term investments
|
282,318
|
|
|
2,385
|
|
|
1.70
|
%
|
|
475,812
|
|
|
3,463
|
|
|
1.46
|
%
|
||||
Investments and other
|
6,337,803
|
|
|
76,228
|
|
|
2.41
|
%
|
|
6,204,782
|
|
|
76,065
|
|
|
2.45
|
%
|
||||
Total earning assets
|
25,620,211
|
|
|
$
|
400,880
|
|
|
3.14
|
%
|
|
24,207,523
|
|
|
$
|
382,257
|
|
|
3.17
|
%
|
||
Other assets, net
|
2,450,451
|
|
|
|
|
|
|
2,458,235
|
|
|
|
|
|
||||||||
Total assets
|
$
|
28,070,662
|
|
|
|
|
|
|
$
|
26,665,758
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings
|
$
|
1,406,333
|
|
|
$
|
464
|
|
|
0.07
|
%
|
|
$
|
1,315,250
|
|
|
$
|
497
|
|
|
0.08
|
%
|
Interest-bearing demand
|
3,430,571
|
|
|
4,176
|
|
|
0.24
|
%
|
|
3,227,593
|
|
|
2,087
|
|
|
0.13
|
%
|
||||
Money market
|
9,062,514
|
|
|
12,753
|
|
|
0.28
|
%
|
|
8,878,663
|
|
|
7,873
|
|
|
0.18
|
%
|
||||
Time
|
1,549,351
|
|
|
6,051
|
|
|
0.79
|
%
|
|
1,612,312
|
|
|
5,303
|
|
|
0.66
|
%
|
||||
Total interest-bearing deposits
|
15,448,769
|
|
|
23,444
|
|
|
0.31
|
%
|
|
15,033,818
|
|
|
15,760
|
|
|
0.21
|
%
|
||||
Federal funds purchased and securities sold under agreements to repurchase
|
617,007
|
|
|
674
|
|
|
0.22
|
%
|
|
623,984
|
|
|
466
|
|
|
0.15
|
%
|
||||
Other short-term funding
|
993,704
|
|
|
1,360
|
|
|
0.28
|
%
|
|
178,173
|
|
|
196
|
|
|
0.22
|
%
|
||||
Total short-term funding
|
1,610,711
|
|
|
2,034
|
|
|
0.25
|
%
|
|
802,157
|
|
|
662
|
|
|
0.17
|
%
|
||||
Long-term funding
|
2,817,560
|
|
|
16,428
|
|
|
1.17
|
%
|
|
3,402,382
|
|
|
21,514
|
|
|
1.27
|
%
|
||||
Total short and long-term funding
|
4,428,271
|
|
|
18,462
|
|
|
0.84
|
%
|
|
4,204,539
|
|
|
22,176
|
|
|
1.06
|
%
|
||||
Total interest-bearing liabilities
|
19,877,040
|
|
|
$
|
41,906
|
|
|
0.42
|
%
|
|
19,238,357
|
|
|
$
|
37,936
|
|
|
0.40
|
%
|
||
Noninterest-bearing demand deposits
|
4,983,197
|
|
|
|
|
|
|
4,308,463
|
|
|
|
|
|
||||||||
Other liabilities
|
230,528
|
|
|
|
|
|
|
259,160
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
2,979,897
|
|
|
|
|
|
|
2,859,778
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
28,070,662
|
|
|
|
|
|
|
$
|
26,665,758
|
|
|
|
|
|
||||||
Interest rate spread
|
|
|
|
|
2.72
|
%
|
|
|
|
|
|
2.77
|
%
|
||||||||
Net free funds
|
|
|
|
|
0.09
|
%
|
|
|
|
|
|
0.09
|
%
|
||||||||
Fully tax-equivalent net interest income and net interest margin
|
|
|
$
|
358,974
|
|
|
2.81
|
%
|
|
|
|
$
|
344,321
|
|
|
2.86
|
%
|
||||
Fully tax-equivalent adjustment
|
|
|
10,270
|
|
|
|
|
|
|
10,020
|
|
|
|
||||||||
Net interest income
|
|
|
$
|
348,704
|
|
|
|
|
|
|
$
|
334,301
|
|
|
|
|
Quarter ended
|
|||||||||||||||||||||||||||||||
|
June 30, 2016
|
|
March 31, 2016
|
|
June 30, 2015
|
|||||||||||||||||||||||||||
|
Average
Balance
|
|
Interest
Income /
Expense
|
|
Average
Yield /
Rate
|
|
Average
Balance |
|
Interest
Income / Expense |
|
Average
Yield / Rate |
|
Average
Balance
|
|
Interest
Income /
Expense
|
|
Average
Yield /
Rate
|
|||||||||||||||
|
($ in Thousands)
|
|||||||||||||||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans:(1)(2)(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial and business lending
|
$
|
7,474,633
|
|
|
$
|
59,052
|
|
|
3.18
|
%
|
|
$
|
7,121,061
|
|
|
$
|
57,258
|
|
|
3.23
|
%
|
|
$
|
7,167,315
|
|
|
$
|
56,329
|
|
|
3.15
|
%
|
Commercial real estate lending
|
4,654,111
|
|
|
40,169
|
|
|
3.47
|
%
|
|
4,469,531
|
|
|
38,989
|
|
|
3.51
|
%
|
|
4,148,955
|
|
|
35,688
|
|
|
3.45
|
%
|
||||||
Total commercial
|
12,128,744
|
|
|
99,221
|
|
|
3.29
|
%
|
|
11,590,592
|
|
|
96,247
|
|
|
3.34
|
%
|
|
11,316,270
|
|
|
92,017
|
|
|
3.26
|
%
|
||||||
Residential mortgage
|
6,129,924
|
|
|
48,382
|
|
|
3.16
|
%
|
|
5,920,280
|
|
|
47,748
|
|
|
3.23
|
%
|
|
5,411,193
|
|
|
44,447
|
|
|
3.29
|
%
|
||||||
Retail
|
1,383,317
|
|
|
16,414
|
|
|
4.75
|
%
|
|
1,411,958
|
|
|
16,640
|
|
|
4.72
|
%
|
|
1,460,842
|
|
|
16,857
|
|
|
4.62
|
%
|
||||||
Total loans
|
19,641,985
|
|
|
164,017
|
|
|
3.35
|
%
|
|
18,922,830
|
|
|
160,635
|
|
|
3.41
|
%
|
|
18,188,305
|
|
|
153,321
|
|
|
3.38
|
%
|
||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
4,967,437
|
|
|
24,270
|
|
|
1.95
|
%
|
|
5,034,072
|
|
|
25,516
|
|
|
2.03
|
%
|
|
4,761,445
|
|
|
23,868
|
|
|
2.01
|
%
|
||||||
Tax-exempt(1)
|
1,064,252
|
|
|
12,077
|
|
|
4.54
|
%
|
|
1,045,210
|
|
|
11,980
|
|
|
4.58
|
%
|
|
942,032
|
|
|
11,575
|
|
|
4.92
|
%
|
||||||
Other short-term investments
|
294,375
|
|
|
1,318
|
|
|
1.80
|
%
|
|
270,261
|
|
|
1,067
|
|
|
1.59
|
%
|
|
374,585
|
|
|
1,771
|
|
|
1.89
|
%
|
||||||
Investments and other
|
6,326,064
|
|
|
37,665
|
|
|
2.38
|
%
|
|
6,349,543
|
|
|
38,563
|
|
|
2.43
|
%
|
|
6,078,062
|
|
|
37,214
|
|
|
2.45
|
%
|
||||||
Total earning assets
|
25,968,049
|
|
|
$
|
201,682
|
|
|
3.12
|
%
|
|
25,272,373
|
|
|
$
|
199,198
|
|
|
3.16
|
%
|
|
24,266,367
|
|
|
$
|
190,535
|
|
|
3.15
|
%
|
|||
Other assets, net
|
2,674,427
|
|
|
|
|
|
|
2,426,475
|
|
|
|
|
|
|
2,461,765
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
28,642,476
|
|
|
|
|
|
|
$
|
27,698,848
|
|
|
|
|
|
|
$
|
26,728,132
|
|
|
|
|
|
|||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings
|
$
|
1,445,020
|
|
|
$
|
228
|
|
|
0.06
|
%
|
|
$
|
1,367,646
|
|
|
$
|
236
|
|
|
0.07
|
%
|
|
$
|
1,352,616
|
|
|
$
|
259
|
|
|
0.08
|
%
|
Interest-bearing demand
|
3,640,733
|
|
|
2,144
|
|
|
0.24
|
%
|
|
3,220,409
|
|
|
2,032
|
|
|
0.25
|
%
|
|
3,251,196
|
|
|
1,037
|
|
|
0.13
|
%
|
||||||
Money market
|
8,692,782
|
|
|
6,309
|
|
|
0.29
|
%
|
|
9,432,245
|
|
|
6,444
|
|
|
0.27
|
%
|
|
9,101,589
|
|
|
4,088
|
|
|
0.18
|
%
|
||||||
Time
|
1,540,424
|
|
|
2,997
|
|
|
0.78
|
%
|
|
1,558,278
|
|
|
3,054
|
|
|
0.79
|
%
|
|
1,630,242
|
|
|
2,757
|
|
|
0.68
|
%
|
||||||
Total interest-bearing deposits
|
15,318,959
|
|
|
11,678
|
|
|
0.31
|
%
|
|
15,578,578
|
|
|
11,766
|
|
|
0.30
|
%
|
|
15,335,643
|
|
|
8,141
|
|
|
0.21
|
%
|
||||||
Federal funds purchased and securities sold under agreements to repurchase
|
674,360
|
|
|
378
|
|
|
0.23
|
%
|
|
559,459
|
|
|
296
|
|
|
0.21
|
%
|
|
662,047
|
|
|
235
|
|
|
0.14
|
%
|
||||||
Other short-term funding
|
1,209,511
|
|
|
845
|
|
|
0.28
|
%
|
|
777,898
|
|
|
515
|
|
|
0.27
|
%
|
|
236,459
|
|
|
115
|
|
|
0.20
|
%
|
||||||
Total short-term funding
|
1,883,871
|
|
|
1,223
|
|
|
0.26
|
%
|
|
1,337,357
|
|
|
811
|
|
|
0.24
|
%
|
|
898,506
|
|
|
350
|
|
|
0.16
|
%
|
||||||
Long-term funding
|
3,052,581
|
|
|
6,923
|
|
|
0.91
|
%
|
|
2,582,538
|
|
|
9,505
|
|
|
1.47
|
%
|
|
3,077,012
|
|
|
10,642
|
|
|
1.38
|
%
|
||||||
Total short and long-term funding
|
4,936,452
|
|
|
8,146
|
|
|
0.66
|
%
|
|
3,919,895
|
|
|
10,316
|
|
|
1.05
|
%
|
|
3,975,518
|
|
|
10,992
|
|
|
1.11
|
%
|
||||||
Total interest-bearing liabilities
|
20,255,411
|
|
|
$
|
19,824
|
|
|
0.39
|
%
|
|
19,498,473
|
|
|
$
|
22,082
|
|
|
0.45
|
%
|
|
19,311,161
|
|
|
$
|
19,133
|
|
|
0.40
|
%
|
|||
Noninterest-bearing demand deposits
|
4,969,994
|
|
|
|
|
|
|
4,996,596
|
|
|
|
|
|
|
4,290,567
|
|
|
|
|
|
||||||||||||
Other liabilities
|
228,027
|
|
|
|
|
|
|
233,029
|
|
|
|
|
|
|
251,743
|
|
|
|
|
|
||||||||||||
Stockholders’ equity
|
3,189,044
|
|
|
|
|
|
|
2,970,750
|
|
|
|
|
|
|
2,874,661
|
|
|
|
|
|
||||||||||||
Total liabilities and stockholders’ equity
|
$
|
28,642,476
|
|
|
|
|
|
|
$
|
27,698,848
|
|
|
|
|
|
|
$
|
26,728,132
|
|
|
|
|
|
|||||||||
Interest rate spread
|
|
|
|
|
2.73
|
%
|
|
|
|
|
|
2.71
|
%
|
|
|
|
|
|
2.75
|
%
|
||||||||||||
Net free funds
|
|
|
|
|
0.08
|
%
|
|
|
|
|
|
0.10
|
%
|
|
|
|
|
|
0.08
|
%
|
||||||||||||
Fully tax-equivalent net interest income and net interest margin
|
|
|
$
|
181,858
|
|
|
2.81
|
%
|
|
|
|
$
|
177,116
|
|
|
2.81
|
%
|
|
|
|
$
|
171,402
|
|
|
2.83
|
%
|
||||||
Fully tax-equivalent adjustment
|
|
|
5,141
|
|
|
|
|
|
|
5,129
|
|
|
|
|
|
|
4,914
|
|
|
|
||||||||||||
Net interest income
|
|
|
$
|
176,717
|
|
|
|
|
|
|
$
|
171,987
|
|
|
|
|
|
|
$
|
166,488
|
|
|
|
(1)
|
The yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 35% for all periods presented and is net of the effects of certain disallowed interest deductions.
|
(2)
|
Nonaccrual loans and loans held for sale have been included in the average balances.
|
(3)
|
Interest income includes net loan fees.
|
•
|
Net interest income in the consolidated statements of income (which excludes the fully tax-equivalent adjustment) was
$349 million
for the first
six
months of
2016
compared to
$334 million
for the first
six
months of
2015
. See sections “Interest Rate Risk” and “Quantitative and Qualitative Disclosures about Market Risk” for a discussion of interest rate risk and market risk.
|
•
|
Fully tax-equivalent net interest income of
$359 million
for the first
six
months of
2016
was
$15 million
higher than the first
six
months of
2015
. The increase in fully tax-equivalent net interest income was attributable to a favorable volume variance (as balance sheet changes in both volume and mix increased fully tax-equivalent net interest income by $25 million) and a $1 million day variance (one additional day in the first half of 2016), partially offset by an unfavorable rate variance (as the impact of changes in the interest rate environment and product pricing decreased fully tax-equivalent net interest income by $11 million).
|
•
|
Average earning assets of
$25.6 billion
for the first
six
months of
2016
were
$1.4 billion
, or
6%
higher than the first
six
months of
2015
. Average loans increased
$1.3 billion
, or
7%
, primarily due to a
$703 million
increase in residential mortgage loans and a
$653 million
increase in commercial loans. Average securities and short-term investments increased
$133 million
, primarily due to a $220 million increase in mortgage-related securities and a $109 million increase in municipal securities, partially offset by a $196 million decrease in interest-bearing deposits in other banks.
|
•
|
Average interest-bearing liabilities of
$19.9 billion
for the first
six
months of
2016
were up
$639 million
, or
3%
versus the first
six
months of
2015
. On average, interest-bearing deposits increased
$415 million
and noninterest-bearing demand deposits (a principal component of net free funds) increased
$675 million
. On average, short and long-term funding increased
$224 million
compared to the first
six
months of
2015
, including a
$809 million
increase in short-term funding, partially offset by a
$585 million
decrease in long-term funding. The Corporation redeemed $430 million of senior notes in February 2016.
|
•
|
The net interest margin for the first
six
months of
2016
was
2.81%
, compared to
2.86%
for the first
six
months of
2015
. The 5 basis points ("bp") decline in net interest margin was attributable to a 5 bp decrease in interest rate spread (the net of a 3 bp decrease in the yield on earning assets and a 2 bp increase in the cost of interest-bearing liabilities). The net free funds benefit remained level at 9bp.
|
•
|
For the first
six
months of
2016
, loan yields decreased 4 bp to 3.38%, due to competitive pricing pressures in this low interest rate environment. The yield on investment securities and other short-term investments decreased 4 bp to 2.41%, and was also impacted by the low interest rate environment and higher prepayment speeds of mortgage-related securities purchased at a premium.
|
•
|
The cost of interest-bearing liabilities was
0.42%
for the first six months of 2016, 2 bp higher than the first six months of 2015. The increase was due to a 10 bp increase in the average cost of interest-bearing deposits (to
0.31%
) and an 8 bp increase in the cost of short-term funding (to
0.25%
), both primarily due to the December 2015 Federal Reserve interest rate change; partially offset by a 10 bp decrease in the cost of long-term funding (to
1.17%
), primarily due to the early redemption of $430 million of senior notes in February 2016.
|
•
|
At the end of the second quarter of 2016, the Federal funds rate was below 0.50% after a target rate increase in December 2015. If the Federal Reserve decides to increase rates later this year, the timing and magnitude of any such increases is uncertain and will likely depend on domestic and global economic conditions, among other factors.
|
|
|
|
|
|
|
|
|
|
2Q16 Change vs
|
||||||||||||||||||
($ in Thousands)
|
YTD
2016 |
YTD
2015 |
YTD
Change
|
2Q16
|
1Q16
|
4Q15
|
3Q15
|
2Q15
|
1Q16
|
2Q15
|
|||||||||||||||||
Trust service fees
|
$
|
22,956
|
|
$
|
24,602
|
|
(7
|
)%
|
$
|
11,509
|
|
$
|
11,447
|
|
$
|
11,965
|
|
$
|
12,273
|
|
$
|
12,515
|
|
1
|
%
|
(8
|
)%
|
Service charges on deposit accounts
|
32,717
|
|
31,509
|
|
4
|
%
|
16,444
|
|
16,273
|
|
16,577
|
|
17,385
|
|
15,703
|
|
1
|
%
|
5
|
%
|
|||||||
Card-based and other nondeposit fees
|
24,708
|
|
26,013
|
|
(5
|
)%
|
12,717
|
|
11,991
|
|
12,694
|
|
12,618
|
|
13,597
|
|
6
|
%
|
(6
|
)%
|
|||||||
Insurance commissions
|
43,387
|
|
39,805
|
|
9
|
%
|
22,005
|
|
21,382
|
|
17,997
|
|
17,561
|
|
20,077
|
|
3
|
%
|
10
|
%
|
|||||||
Brokerage and annuity commissions
|
7,892
|
|
7,875
|
|
—
|
%
|
4,098
|
|
3,794
|
|
3,694
|
|
3,809
|
|
4,192
|
|
8
|
%
|
(2
|
)%
|
|||||||
Subtotal ("fee-based revenue")
|
131,660
|
|
129,804
|
|
1
|
%
|
66,773
|
|
64,887
|
|
62,927
|
|
63,646
|
|
66,084
|
|
3
|
%
|
1
|
%
|
|||||||
Mortgage banking income
|
16,287
|
|
23,031
|
|
(29
|
)%
|
8,300
|
|
7,987
|
|
10,851
|
|
9,557
|
|
12,201
|
|
4
|
%
|
(32
|
)%
|
|||||||
Mortgage servicing rights expense
|
8,016
|
|
5,682
|
|
41
|
%
|
4,233
|
|
3,783
|
|
2,580
|
|
2,914
|
|
2,260
|
|
12
|
%
|
87
|
%
|
|||||||
Mortgage banking, net
|
8,271
|
|
17,349
|
|
(52
|
)%
|
4,067
|
|
4,204
|
|
8,271
|
|
6,643
|
|
9,941
|
|
(3
|
)%
|
(59
|
)%
|
|||||||
Capital market fees, net
|
7,331
|
|
5,159
|
|
42
|
%
|
3,793
|
|
3,538
|
|
3,423
|
|
2,170
|
|
2,692
|
|
7
|
%
|
41
|
%
|
|||||||
Bank owned life insurance income
|
7,743
|
|
5,256
|
|
47
|
%
|
2,973
|
|
4,770
|
|
2,092
|
|
2,448
|
|
2,381
|
|
(38
|
)%
|
25
|
%
|
|||||||
Other
|
3,960
|
|
4,798
|
|
(17
|
)%
|
1,789
|
|
2,171
|
|
2,580
|
|
2,118
|
|
2,288
|
|
(18
|
)%
|
(22
|
)%
|
|||||||
Subtotal (“fee income”)
|
158,965
|
|
162,366
|
|
(2
|
)%
|
79,395
|
|
79,570
|
|
79,293
|
|
77,025
|
|
83,386
|
|
—
|
%
|
(5
|
)%
|
|||||||
Asset gains (losses), net
|
181
|
|
2,687
|
|
(93
|
)%
|
(343
|
)
|
524
|
|
(391
|
)
|
244
|
|
1,854
|
|
(165
|
)%
|
(119
|
)%
|
|||||||
Investment securities gains, net
|
6,214
|
|
1,242
|
|
400
|
%
|
3,116
|
|
3,098
|
|
4,095
|
|
2,796
|
|
1,242
|
|
1
|
%
|
151
|
%
|
|||||||
Total noninterest income
|
$
|
165,360
|
|
$
|
166,295
|
|
(1
|
)%
|
$
|
82,168
|
|
$
|
83,192
|
|
$
|
82,997
|
|
$
|
80,065
|
|
$
|
86,482
|
|
(1
|
)%
|
(5
|
)%
|
Mortgage loans originated for sale during period
|
$
|
517,838
|
|
$
|
619,202
|
|
(16
|
)%
|
$
|
323,989
|
|
$
|
193,849
|
|
$
|
316,973
|
|
$
|
291,931
|
|
$
|
350,906
|
|
67
|
%
|
(8
|
)%
|
Trust assets under management, at market value
|
$
|
7,944,187
|
|
$
|
8,068,241
|
|
(2
|
)%
|
$
|
7,944,187
|
|
$
|
7,843,512
|
|
$
|
7,729,131
|
|
$
|
7,625,613
|
|
$
|
8,068,241
|
|
1
|
%
|
(2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Fee-based revenue was
$132 million
, an increase of $2 million (
1%
) compared to the
six months ended
June 30, 2015
. Within fee-based revenue, increases in insurance commissions and service charges on deposit accounts were partially offset by decreases in trust service fees and card-based and other nondeposit fees.
|
•
|
Net mortgage banking income for the first half of
2016
was
$8 million
, down $9 million (
52%
) compared to the first half of
2015
. Net mortgage banking consists of gross mortgage banking income less mortgage servicing rights expense. Gross mortgage banking income includes servicing fees, the gain or loss on sales of mortgage loans to the secondary market, changes to the mortgage repurchase reserve, and the fair value adjustments on the mortgage derivatives. Gross mortgage banking income decreased $7 million, primarily due to a $6 million unfavorable change in the fair value of mortgage derivatives.
|
•
|
Mortgage servicing rights expense includes both the amortization of the mortgage servicing rights asset and changes to the valuation allowance associated with the mortgage servicing rights asset. Mortgage servicing rights expense is affected by the size of the servicing portfolio, as well as the changes in the estimated fair value of the mortgage servicing rights asset. Mortgage servicing rights expense was
$8 million
for the
six months ended
June 30, 2016
, up $2 million (
41%
) compared to the
six months ended
June 30, 2015
. The increase in mortgage servicing rights expense was primarily due to a $2 million addition to the valuation reserve for the first half of
2016
compared to a slight recovery during the first half of
2015
, reflecting lower interest rates at June 30, 2016. See section “Critical Accounting Policies," in the Corporation’s 2015 Annual Report on Form 10-K, Note 8, “Goodwill and Intangible Assets,” and Note 13, “Fair Value Measurements,” of the notes to consolidated financial statements for additional disclosure.
|
•
|
Net investment securities gains of
$6 million
and
$1 million
for the
six months ended
June 30, 2016
and
2015
, respectively, due to the sale of FNMA and FHLMC mortgage-related securities into GNMA mortgage-related securities. See Note 6,
|
•
|
Net asset gains for the first
six
months of
2016
were minimal. Net asset gains of
$3 million
for the first
six
months of
2015
were primarily due to the gain on sales of alternative equity investments.
|
|
YTD
2016
|
YTD
2015
|
YTD Change
|
|
|
|
|
|
2Q16 Change vs
|
||||||||||||||||||
($ in Thousands)
|
2Q16
|
1Q16
|
4Q15
|
3Q15
|
2Q15
|
1Q16
|
2Q15
|
||||||||||||||||||||
Personnel expense
|
$
|
203,527
|
|
$
|
203,138
|
|
—
|
%
|
$
|
102,129
|
|
$
|
101,398
|
|
$
|
100,469
|
|
$
|
101,134
|
|
$
|
102,986
|
|
1
|
%
|
(1
|
)%
|
Occupancy
|
27,017
|
|
31,991
|
|
(16
|
)%
|
13,215
|
|
13,802
|
|
14,718
|
|
14,187
|
|
14,308
|
|
(4
|
)%
|
(8
|
)%
|
|||||||
Equipment
|
10,842
|
|
11,511
|
|
(6
|
)%
|
5,396
|
|
5,446
|
|
5,695
|
|
6,003
|
|
5,739
|
|
(1
|
)%
|
(6
|
)%
|
|||||||
Technology
|
28,714
|
|
31,912
|
|
(10
|
)%
|
14,450
|
|
14,264
|
|
13,953
|
|
14,748
|
|
16,354
|
|
1
|
%
|
(12
|
)%
|
|||||||
Business development and advertising
|
14,802
|
|
12,156
|
|
22
|
%
|
6,591
|
|
8,211
|
|
7,652
|
|
5,964
|
|
6,829
|
|
(20
|
)%
|
(3
|
)%
|
|||||||
Other intangible amortization, net
|
1,043
|
|
1,689
|
|
(38
|
)%
|
539
|
|
504
|
|
520
|
|
885
|
|
888
|
|
7
|
%
|
(39
|
)%
|
|||||||
Loan expense
|
6,663
|
|
6,677
|
|
—
|
%
|
3,442
|
|
3,221
|
|
4,120
|
|
3,305
|
|
3,681
|
|
7
|
%
|
(6
|
)%
|
|||||||
Legal and professional fees
|
9,881
|
|
8,882
|
|
11
|
%
|
4,856
|
|
5,025
|
|
3,963
|
|
4,207
|
|
4,344
|
|
(3
|
)%
|
12
|
%
|
|||||||
Foreclosure / OREO expense
|
3,207
|
|
2,426
|
|
32
|
%
|
1,330
|
|
1,877
|
|
2,371
|
|
645
|
|
1,264
|
|
(29
|
)%
|
5
|
%
|
|||||||
FDIC expense
|
16,500
|
|
12,500
|
|
32
|
%
|
8,750
|
|
7,750
|
|
7,500
|
|
6,000
|
|
6,000
|
|
13
|
%
|
46
|
%
|
|||||||
Other
|
26,135
|
|
27,887
|
|
(6
|
)%
|
13,662
|
|
12,473
|
|
15,032
|
|
14,507
|
|
14,384
|
|
10
|
%
|
(5
|
)%
|
|||||||
Total noninterest expense
|
$
|
348,331
|
|
$
|
350,769
|
|
(1
|
)%
|
$
|
174,360
|
|
$
|
173,971
|
|
$
|
175,993
|
|
$
|
171,585
|
|
$
|
176,777
|
|
—
|
%
|
(1
|
)%
|
Average full-time equivalent employees
|
4,394
|
|
4,443
|
|
|
4,415
|
4,374
|
4,378
|
4,421
|
4,465
|
|
|
•
|
Personnel expense (which includes salary-related expenses and fringe benefit expenses) was
$204 million
for the
six months ended
June 30, 2016
, relatively unchanged from the
six months ended
June 30, 2015
.
|
•
|
Nonpersonnel noninterest expenses on a combined basis were $145 million, down $3 million (2%) compared to the first half of
2015
. Occupancy expense was down $5 million (
16%
), primarily attributable to a lease termination charge incurred in the first quarter of 2015. Technology expense was down $3 million (
10%
) from the
six months ended
June 30, 2015
, primarily driven by a reduction in external technology support services. FDIC expense was $4 million (
32%
) higher compared to the first half of
2015
, reflecting growth in criticized and risk-weighted assets. All remaining noninterest expense categories on a combined basis were up $1 million (2%) .
|
•
|
At
June 30, 2016
, total assets were
$29.0 billion
,
up
$1.3 billion
(
5%
) from
December 31, 2015
and up
$1.9 billion
(
7%
) from
June 30, 2015
.
|
•
|
Loans of
$19.8 billion
at
June 30, 2016
were
up
$1.1 billion
(
6%
) from
December 31, 2015
and were up
$1.5 billion
(
8%
) from
June 30, 2015
. See section "Loans" for additional information on loans.
|
•
|
Investment securities were
$6.0 billion
at
June 30, 2016
,
down
$98 million (
2%
) from year-end
2015
and up
$98 million
(
2%
) from
June 30, 2015
.
|
•
|
Premises and equipment, net of
$331 million
increased $64 million (24%) from
December 31, 2015
and increased $57 million (21%) from
June 30, 2015
, primarily due to the purchase of the Milwaukee Center.
|
•
|
At
June 30, 2016
, total deposits of $20.3 billion were
down
$715 million
(
3%
) from
December 31, 2015
and were up
$1.0 billion
(
5%
) from
June 30, 2015
. See section "Deposits and Customer Funding" for additional information on deposits.
|
•
|
Short and long-term funding of $5.4 billion at
June 30, 2016
increased
$1.9 billion
(
54%
) since year-end
2015
, primarily due to increases of $991 million and $1.3 billion in short and long-term FHLB Advances, respectively. This was partially offset by the redemption of $430 million in senior notes in February 2016.
|
|
|
|||||||||||||||||||||||||||||||||
|
June 30, 2016
|
|
March 31, 2016
|
|
December 31, 2015
|
|
September 30, 2015
|
|
June 30, 2015
|
|||||||||||||||||||||||||
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|||||||||||||||
|
($ in Thousands)
|
|||||||||||||||||||||||||||||||||
Commercial and industrial
|
$
|
6,701,986
|
|
|
34
|
%
|
|
$
|
6,511,648
|
|
|
34
|
%
|
|
$
|
6,190,683
|
|
|
33
|
%
|
|
$
|
6,128,080
|
|
|
33
|
%
|
|
$
|
6,255,092
|
|
|
34
|
%
|
Commercial real estate — owner occupied
|
921,736
|
|
|
5
|
|
|
917,285
|
|
|
5
|
|
|
918,212
|
|
|
5
|
|
|
966,689
|
|
|
5
|
|
|
978,183
|
|
|
5
|
|
|||||
Commercial and business lending
|
7,623,722
|
|
|
39
|
|
|
7,428,933
|
|
|
39
|
|
|
7,108,895
|
|
|
38
|
|
|
7,094,769
|
|
|
38
|
|
|
7,233,275
|
|
|
39
|
|
|||||
Commercial real estate — investor
|
3,495,791
|
|
|
18
|
|
|
3,276,733
|
|
|
17
|
|
|
3,234,266
|
|
|
17
|
|
|
3,183,352
|
|
|
17
|
|
|
3,126,440
|
|
|
17
|
|
|||||
Real estate construction
|
1,285,573
|
|
|
6
|
|
|
1,184,398
|
|
|
6
|
|
|
1,162,145
|
|
|
6
|
|
|
1,124,280
|
|
|
6
|
|
|
1,092,308
|
|
|
6
|
|
|||||
Commercial real estate lending
|
4,781,364
|
|
|
24
|
|
|
4,461,131
|
|
|
23
|
|
|
4,396,411
|
|
|
23
|
|
|
4,307,632
|
|
|
23
|
|
|
4,218,748
|
|
|
23
|
|
|||||
Total commercial
|
12,405,086
|
|
|
63
|
|
|
11,890,064
|
|
|
62
|
|
|
11,505,306
|
|
|
61
|
|
|
11,402,401
|
|
|
61
|
|
|
11,452,023
|
|
|
62
|
|
|||||
Residential mortgage
|
6,035,720
|
|
|
30
|
|
|
5,944,457
|
|
|
31
|
|
|
5,783,267
|
|
|
31
|
|
|
5,682,178
|
|
|
31
|
|
|
5,398,434
|
|
|
30
|
|
|||||
Home equity revolving lines of credit
|
861,311
|
|
|
4
|
|
|
867,860
|
|
|
4
|
|
|
883,759
|
|
|
5
|
|
|
883,573
|
|
|
5
|
|
|
880,628
|
|
|
5
|
|
|||||
Home equity loans junior liens
|
107,460
|
|
|
1
|
|
|
115,134
|
|
|
1
|
|
|
122,043
|
|
|
1
|
|
|
130,892
|
|
|
1
|
|
|
141,344
|
|
|
1
|
|
|||||
Home equity
|
968,771
|
|
|
5
|
|
|
982,994
|
|
|
5
|
|
|
1,005,802
|
|
|
6
|
|
|
1,014,465
|
|
|
6
|
|
|
1,021,972
|
|
|
6
|
|
|||||
Other consumer
|
405,709
|
|
|
2
|
|
|
409,725
|
|
|
2
|
|
|
419,968
|
|
|
2
|
|
|
425,729
|
|
|
2
|
|
|
430,823
|
|
|
2
|
|
|||||
Total consumer
|
7,410,200
|
|
|
37
|
|
|
7,337,176
|
|
|
38
|
|
|
7,209,037
|
|
|
39
|
|
|
7,122,372
|
|
|
39
|
|
|
6,851,229
|
|
|
38
|
|
|||||
Total loans
|
$
|
19,815,286
|
|
|
100
|
%
|
|
$
|
19,227,240
|
|
|
100
|
%
|
|
$
|
18,714,343
|
|
|
100
|
%
|
|
$
|
18,524,773
|
|
|
100
|
%
|
|
$
|
18,303,252
|
|
|
100
|
%
|
Commercial real estate - investor and Real estate construction loan detail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Farmland
|
$
|
6,181
|
|
|
—
|
%
|
|
$
|
5,557
|
|
|
—
|
%
|
|
$
|
7,135
|
|
|
—
|
%
|
|
$
|
9,645
|
|
|
—
|
%
|
|
$
|
9,590
|
|
|
—
|
%
|
Multi-family
|
1,076,549
|
|
|
31
|
|
|
974,051
|
|
|
30
|
|
|
932,360
|
|
|
29
|
|
|
921,456
|
|
|
29
|
|
|
902,680
|
|
|
29
|
|
|||||
Non-owner occupied
|
2,413,061
|
|
|
69
|
|
|
2,297,125
|
|
|
70
|
|
|
2,294,771
|
|
|
71
|
|
|
2,252,251
|
|
|
71
|
|
|
2,214,170
|
|
|
71
|
|
|||||
Commercial real estate — investor
|
$
|
3,495,791
|
|
|
100
|
%
|
|
$
|
3,276,733
|
|
|
100
|
%
|
|
$
|
3,234,266
|
|
|
100
|
%
|
|
$
|
3,183,352
|
|
|
100
|
%
|
|
$
|
3,126,440
|
|
|
100
|
%
|
1-4 family construction
|
$
|
353,244
|
|
|
27
|
%
|
|
$
|
320,984
|
|
|
27
|
%
|
|
$
|
309,396
|
|
|
27
|
%
|
|
$
|
315,538
|
|
|
28
|
%
|
|
$
|
318,222
|
|
|
29
|
%
|
All other construction
|
932,329
|
|
|
73
|
|
|
863,414
|
|
|
73
|
|
|
852,749
|
|
|
73
|
|
|
808,742
|
|
|
72
|
|
|
774,086
|
|
|
71
|
|
|||||
Real estate construction
|
$
|
1,285,573
|
|
|
100
|
%
|
|
$
|
1,184,398
|
|
|
100
|
%
|
|
$
|
1,162,145
|
|
|
100
|
%
|
|
$
|
1,124,280
|
|
|
100
|
%
|
|
$
|
1,092,308
|
|
|
100
|
%
|
•
|
Commercial and business loans were
$7.6 billion
and represented
39
% of total loans at June 30, 2016, an increase of
$515 million
(
7%
) from
December 31, 2015
and an increase of
$390 million
(
5%
) from
June 30, 2015
.
|
•
|
Commercial real estate lending totaled
$4.8 billion
at
June 30, 2016
and represented
24
% of total loans, an increase of
$385 million
(
9%
) from
December 31, 2015
and an increase of
$563 million
(
13%
) from
June 30, 2015
.
|
•
|
Consumer loans were
$7.4 billion
and represented
37
% of total loans at
June 30, 2016
, an increase of
$201 million
(
3%
) from
December 31, 2015
and an increase of
$559 million
(
8%
) from
June 30, 2015
.
|
|
June 30, 2016
|
|
March 31, 2016
|
|
December 31, 2015
|
|
September 30, 2015
|
|
June 30, 2015
|
||||||||||
|
($ in Millions)
|
||||||||||||||||||
Pass
|
$
|
387
|
|
|
$
|
402
|
|
|
$
|
522
|
|
|
$
|
587
|
|
|
$
|
658
|
|
Special mention
|
64
|
|
|
75
|
|
|
86
|
|
|
74
|
|
|
28
|
|
|||||
Potential problem
|
176
|
|
|
150
|
|
|
124
|
|
|
84
|
|
|
60
|
|
|||||
Nonaccrual
|
129
|
|
|
129
|
|
|
20
|
|
|
13
|
|
|
11
|
|
|||||
Total oil and gas related loans
|
$
|
756
|
|
|
$
|
756
|
|
|
$
|
752
|
|
|
$
|
758
|
|
|
$
|
757
|
|
Oil and gas related allowance
|
$
|
42
|
|
|
$
|
49
|
|
|
$
|
42
|
|
|
$
|
29
|
|
|
$
|
26
|
|
Oil and gas related allowance ratio
|
5.6
|
%
|
|
6.5
|
%
|
|
5.6
|
%
|
|
3.8
|
%
|
|
3.4
|
%
|
|
Maturity (1)
|
|||||||||||||||||
June 30, 2016
|
Within 1 Year (2)
|
|
1-5 Years
|
|
After 5 Years
|
|
Total
|
|
% of Total
|
|||||||||
|
($ in Thousands)
|
|||||||||||||||||
Commercial and industrial
|
$
|
5,649,659
|
|
|
$
|
779,935
|
|
|
$
|
272,392
|
|
|
$
|
6,701,986
|
|
|
54
|
%
|
Commercial real estate — investor
|
1,977,487
|
|
|
1,414,745
|
|
|
103,559
|
|
|
3,495,791
|
|
|
28
|
%
|
||||
Commercial real estate — owner occupied
|
332,292
|
|
|
452,495
|
|
|
136,949
|
|
|
921,736
|
|
|
8
|
%
|
||||
Real estate construction
|
985,148
|
|
|
285,345
|
|
|
15,080
|
|
|
1,285,573
|
|
|
10
|
%
|
||||
Total
|
$
|
8,944,586
|
|
|
$
|
2,932,520
|
|
|
$
|
527,980
|
|
|
$
|
12,405,086
|
|
|
100
|
%
|
Fixed rate
|
$
|
3,938,283
|
|
|
$
|
964,670
|
|
|
$
|
266,918
|
|
|
$
|
5,169,871
|
|
|
42
|
%
|
Floating or adjustable rate
|
5,006,303
|
|
|
1,967,850
|
|
|
261,062
|
|
|
7,235,215
|
|
|
58
|
%
|
||||
Total
|
$
|
8,944,586
|
|
|
$
|
2,932,520
|
|
|
$
|
527,980
|
|
|
$
|
12,405,086
|
|
|
100
|
%
|
Percent by maturity distribution
|
72
|
%
|
|
24
|
%
|
|
4
|
%
|
|
100
|
%
|
|
|
(1)
|
Based upon scheduled principal repayments.
|
(2)
|
Demand loans, past due loans, and overdrafts are reported in the “Within 1 Year” category.
|
|
$ in Thousands
|
|
% to Total
|
|||
Less than 5 years
|
$
|
41,210
|
|
|
5
|
%
|
5 — 10 years
|
215,054
|
|
|
25
|
%
|
|
Over 10 years
|
605,047
|
|
|
70
|
%
|
|
Total home equity revolving lines of credit
|
$
|
861,311
|
|
|
100
|
%
|
|
|
||||||||||||||||||
|
June 30,
2016 |
|
March 31,
2016 |
|
December 31,
2015 |
|
September 30,
2015 |
|
June 30,
2015 |
||||||||||
|
($ in Thousands)
|
||||||||||||||||||
Nonperforming assets:
|
|
||||||||||||||||||
Commercial and industrial
|
$
|
193,439
|
|
|
$
|
197,115
|
|
|
$
|
93,575
|
|
|
$
|
60,184
|
|
|
$
|
66,394
|
|
Commercial real estate — owner occupied
|
9,635
|
|
|
9,443
|
|
|
8,049
|
|
|
13,368
|
|
|
18,821
|
|
|||||
Commercial and business lending
|
203,074
|
|
|
206,558
|
|
|
101,624
|
|
|
73,552
|
|
|
85,215
|
|
|||||
Commercial real estate — investor
|
11,528
|
|
|
12,330
|
|
|
8,643
|
|
|
6,921
|
|
|
6,090
|
|
|||||
Real estate construction
|
957
|
|
|
840
|
|
|
940
|
|
|
997
|
|
|
2,906
|
|
|||||
Commercial real estate lending
|
12,485
|
|
|
13,170
|
|
|
9,583
|
|
|
7,918
|
|
|
8,996
|
|
|||||
Total commercial
|
215,559
|
|
|
219,728
|
|
|
111,207
|
|
|
81,470
|
|
|
94,211
|
|
|||||
Residential mortgage
|
52,300
|
|
|
52,212
|
|
|
51,482
|
|
|
51,957
|
|
|
51,920
|
|
|||||
Home equity revolving lines of credit
|
8,797
|
|
|
8,822
|
|
|
9,917
|
|
|
8,060
|
|
|
8,420
|
|
|||||
Home equity loans junior liens
|
5,566
|
|
|
5,250
|
|
|
5,327
|
|
|
5,581
|
|
|
5,356
|
|
|||||
Home equity
|
14,363
|
|
|
14,072
|
|
|
15,244
|
|
|
13,641
|
|
|
13,776
|
|
|||||
Other consumer
|
380
|
|
|
383
|
|
|
325
|
|
|
386
|
|
|
454
|
|
|||||
Total consumer
|
67,043
|
|
|
66,667
|
|
|
67,051
|
|
|
65,984
|
|
|
66,150
|
|
|||||
Total nonaccrual loans
|
282,602
|
|
|
286,395
|
|
|
178,258
|
|
|
147,454
|
|
|
160,361
|
|
|||||
Commercial real estate owned
|
7,473
|
|
|
9,695
|
|
|
7,942
|
|
|
9,242
|
|
|
9,906
|
|
|||||
Residential real estate owned
|
4,391
|
|
|
4,689
|
|
|
4,768
|
|
|
3,788
|
|
|
2,996
|
|
|||||
Bank properties real estate owned
|
1,805
|
|
|
1,672
|
|
|
1,859
|
|
|
710
|
|
|
655
|
|
|||||
Other real estate owned (“OREO”)
|
13,669
|
|
|
16,056
|
|
|
14,569
|
|
|
13,740
|
|
|
13,557
|
|
|||||
Total nonperforming assets (“NPAs”)
|
$
|
296,271
|
|
|
$
|
302,451
|
|
|
$
|
192,827
|
|
|
$
|
161,194
|
|
|
$
|
173,918
|
|
Commercial real estate-investor & Real estate construction nonaccrual loans detail:
|
|
|
|
|
|
|
|
|
|
||||||||||
Multi-family
|
$
|
115
|
|
|
$
|
415
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
40
|
|
Non-owner occupied
|
11,413
|
|
|
11,915
|
|
|
8,641
|
|
|
6,919
|
|
|
6,050
|
|
|||||
Commercial real estate — investor
|
$
|
11,528
|
|
|
$
|
12,330
|
|
|
$
|
8,643
|
|
|
$
|
6,921
|
|
|
$
|
6,090
|
|
1-4 family construction
|
$
|
153
|
|
|
$
|
274
|
|
|
$
|
314
|
|
|
$
|
337
|
|
|
$
|
682
|
|
All other construction
|
804
|
|
|
566
|
|
|
626
|
|
|
660
|
|
|
2,224
|
|
|||||
Real estate construction
|
$
|
957
|
|
|
$
|
840
|
|
|
$
|
940
|
|
|
$
|
997
|
|
|
$
|
2,906
|
|
Accruing loans past due 90 days or more:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
248
|
|
|
$
|
217
|
|
|
$
|
249
|
|
|
$
|
178
|
|
|
$
|
262
|
|
Consumer
|
1,246
|
|
|
1,412
|
|
|
1,399
|
|
|
1,306
|
|
|
1,400
|
|
|||||
Total accruing loans past due 90 days or more
|
$
|
1,494
|
|
|
$
|
1,629
|
|
|
$
|
1,648
|
|
|
$
|
1,484
|
|
|
$
|
1,662
|
|
Restructured loans (accruing):
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
57,251
|
|
|
$
|
57,980
|
|
|
$
|
59,595
|
|
|
$
|
55,006
|
|
|
$
|
60,219
|
|
Consumer
|
26,175
|
|
|
27,617
|
|
|
27,768
|
|
|
27,803
|
|
|
30,001
|
|
|||||
Total restructured loans (accruing)
|
$
|
83,426
|
|
|
$
|
85,597
|
|
|
$
|
87,363
|
|
|
$
|
82,809
|
|
|
$
|
90,220
|
|
Nonaccrual restructured loans (included in nonaccrual loans)
|
$
|
34,841
|
|
|
$
|
35,232
|
|
|
$
|
37,684
|
|
|
$
|
36,583
|
|
|
$
|
43,699
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans to total loans
|
1.43
|
%
|
|
1.49
|
%
|
|
0.95
|
%
|
|
0.80
|
%
|
|
0.88
|
%
|
|||||
NPAs to total loans plus OREO
|
1.49
|
%
|
|
1.57
|
%
|
|
1.03
|
%
|
|
0.87
|
%
|
|
0.95
|
%
|
|||||
NPAs to total assets
|
1.02
|
%
|
|
1.07
|
%
|
|
0.70
|
%
|
|
0.59
|
%
|
|
0.64
|
%
|
|||||
Allowance for loan losses to nonaccrual loans
|
95
|
%
|
|
97
|
%
|
|
154
|
%
|
|
178
|
%
|
|
163
|
%
|
|
June 30,
2016 |
|
March 31,
2016 |
|
December 31,
2015 |
|
September 30,
2015 |
|
June 30,
2015 |
||||||||||
|
($ in Thousands)
|
||||||||||||||||||
Accruing loans 30-89 days past due:
|
|
|
|
||||||||||||||||
Commercial and industrial
|
$
|
2,124
|
|
|
$
|
2,901
|
|
|
$
|
1,011
|
|
|
$
|
3,296
|
|
|
$
|
6,357
|
|
Commercial real estate — owner occupied
|
193
|
|
|
520
|
|
|
7,142
|
|
|
2,018
|
|
|
1,090
|
|
|||||
Commercial and business lending
|
2,317
|
|
|
3,421
|
|
|
8,153
|
|
|
5,314
|
|
|
7,447
|
|
|||||
Commercial real estate — investor
|
2,715
|
|
|
1,072
|
|
|
291
|
|
|
1,218
|
|
|
19,843
|
|
|||||
Real estate construction
|
524
|
|
|
415
|
|
|
296
|
|
|
373
|
|
|
312
|
|
|||||
Commercial real estate lending
|
3,239
|
|
|
1,487
|
|
|
587
|
|
|
1,591
|
|
|
20,155
|
|
|||||
Total commercial
|
5,556
|
|
|
4,908
|
|
|
8,740
|
|
|
6,905
|
|
|
27,602
|
|
|||||
Residential mortgage
|
7,382
|
|
|
3,594
|
|
|
4,930
|
|
|
4,811
|
|
|
6,602
|
|
|||||
Home equity revolving lines of credit
|
6,075
|
|
|
3,582
|
|
|
5,559
|
|
|
6,142
|
|
|
5,157
|
|
|||||
Home equity loans junior liens
|
1,655
|
|
|
2,222
|
|
|
2,360
|
|
|
2,423
|
|
|
1,894
|
|
|||||
Home equity
|
7,730
|
|
|
5,804
|
|
|
7,919
|
|
|
8,565
|
|
|
7,051
|
|
|||||
Other consumer
|
1,895
|
|
|
1,682
|
|
|
1,870
|
|
|
1,723
|
|
|
1,655
|
|
|||||
Total consumer
|
17,007
|
|
|
11,080
|
|
|
14,719
|
|
|
15,099
|
|
|
15,308
|
|
|||||
Total accruing loans 30-89 days past due
|
$
|
22,563
|
|
|
$
|
15,988
|
|
|
$
|
23,459
|
|
|
$
|
22,004
|
|
|
$
|
42,910
|
|
Commercial real estate-investor & Real estate construction accruing loans 30-89 days past due detail:
|
|
|
|
|
|
|
|
|
|
||||||||||
Farmland
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
66
|
|
|
$
|
—
|
|
Multi-family
|
668
|
|
|
324
|
|
|
108
|
|
|
114
|
|
|
541
|
|
|||||
Non-owner occupied
|
2,047
|
|
|
748
|
|
|
183
|
|
|
1,038
|
|
|
19,302
|
|
|||||
Commercial real estate — investor
|
$
|
2,715
|
|
|
$
|
1,072
|
|
|
$
|
291
|
|
|
$
|
1,218
|
|
|
$
|
19,843
|
|
1-4 family construction
|
$
|
157
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
28
|
|
|
$
|
213
|
|
All other construction
|
367
|
|
|
415
|
|
|
269
|
|
|
345
|
|
|
99
|
|
|||||
Real estate construction
|
$
|
524
|
|
|
$
|
415
|
|
|
$
|
296
|
|
|
$
|
373
|
|
|
$
|
312
|
|
Potential problem loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
379,818
|
|
|
$
|
328,464
|
|
|
$
|
233,130
|
|
|
$
|
192,174
|
|
|
$
|
127,028
|
|
Commercial real estate — owner occupied
|
45,671
|
|
|
41,107
|
|
|
35,706
|
|
|
41,466
|
|
|
41,997
|
|
|||||
Commercial and business lending
|
425,489
|
|
|
369,571
|
|
|
268,836
|
|
|
233,640
|
|
|
169,025
|
|
|||||
Commercial real estate — investor
|
25,081
|
|
|
25,385
|
|
|
25,944
|
|
|
23,633
|
|
|
23,543
|
|
|||||
Real estate construction
|
2,117
|
|
|
2,422
|
|
|
3,919
|
|
|
2,354
|
|
|
1,327
|
|
|||||
Commercial real estate lending
|
27,198
|
|
|
27,807
|
|
|
29,863
|
|
|
25,987
|
|
|
24,870
|
|
|||||
Total commercial
|
452,687
|
|
|
397,378
|
|
|
298,699
|
|
|
259,627
|
|
|
193,895
|
|
|||||
Residential mortgage
|
3,953
|
|
|
3,488
|
|
|
2,796
|
|
|
3,966
|
|
|
5,341
|
|
|||||
Home equity revolving lines of credit
|
62
|
|
|
48
|
|
|
48
|
|
|
141
|
|
|
202
|
|
|||||
Home equity loans junior liens
|
32
|
|
|
161
|
|
|
174
|
|
|
86
|
|
|
230
|
|
|||||
Home equity
|
94
|
|
|
209
|
|
|
222
|
|
|
227
|
|
|
432
|
|
|||||
Total consumer
|
4,047
|
|
|
3,697
|
|
|
3,018
|
|
|
4,193
|
|
|
5,773
|
|
|||||
Total potential problem loans
|
$
|
456,734
|
|
|
$
|
401,075
|
|
|
$
|
301,717
|
|
|
$
|
263,820
|
|
|
$
|
199,668
|
|
|
YTD June 30,
2016
|
YTD June 30,
2015
|
June 30,
2016 |
March 31,
2016 |
December 31,
2015 |
September 30,
2015 |
June 30,
2015 |
||||||||||||||
|
($ in Thousands)
|
||||||||||||||||||||
Allowance for Loan Losses:
|
|
|
|
|
|
|
|
||||||||||||||
Balance at beginning of period
|
$
|
274,264
|
|
$
|
266,302
|
|
$
|
277,370
|
|
$
|
274,264
|
|
$
|
262,536
|
|
$
|
261,538
|
|
$
|
265,268
|
|
Provision for loan losses
|
31,000
|
|
9,500
|
|
11,000
|
|
20,000
|
|
19,500
|
|
9,000
|
|
5,000
|
|
|||||||
Charge offs
|
(45,866
|
)
|
(27,807
|
)
|
(24,621
|
)
|
(21,245
|
)
|
(12,741
|
)
|
(11,732
|
)
|
(14,537
|
)
|
|||||||
Recoveries
|
8,382
|
|
13,543
|
|
4,031
|
|
4,351
|
|
4,969
|
|
3,730
|
|
5,807
|
|
|||||||
Net charge offs
|
(37,484
|
)
|
(14,264
|
)
|
(20,590
|
)
|
(16,894
|
)
|
(7,772
|
)
|
(8,002
|
)
|
(8,730
|
)
|
|||||||
Balance at end of period
|
$
|
267,780
|
|
$
|
261,538
|
|
$
|
267,780
|
|
$
|
277,370
|
|
$
|
274,264
|
|
$
|
262,536
|
|
$
|
261,538
|
|
Allowance for Unfunded Commitments:
|
|
|
|
|
|
|
|
||||||||||||||
Balance at beginning of period
|
$
|
24,400
|
|
$
|
24,900
|
|
$
|
24,400
|
|
$
|
24,400
|
|
$
|
23,900
|
|
$
|
24,900
|
|
$
|
24,900
|
|
Provision for unfunded commitments
|
3,000
|
|
—
|
|
3,000
|
|
—
|
|
500
|
|
(1,000
|
)
|
—
|
|
|||||||
Balance at end of period
|
$
|
27,400
|
|
$
|
24,900
|
|
$
|
27,400
|
|
$
|
24,400
|
|
$
|
24,400
|
|
$
|
23,900
|
|
$
|
24,900
|
|
Allowance for credit losses
(A)
|
$
|
295,180
|
|
$
|
286,438
|
|
$
|
295,180
|
|
$
|
301,770
|
|
$
|
298,664
|
|
$
|
286,436
|
|
$
|
286,438
|
|
Provision for credit losses
(B)
|
$
|
34,000
|
|
$
|
9,500
|
|
$
|
14,000
|
|
$
|
20,000
|
|
$
|
20,000
|
|
$
|
8,000
|
|
$
|
5,000
|
|
Net loan (charge offs) recoveries:
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
(33,500
|
)
|
$
|
(8,571
|
)
|
$
|
(18,564
|
)
|
$
|
(14,936
|
)
|
$
|
(4,586
|
)
|
$
|
(4,709
|
)
|
$
|
(3,921
|
)
|
Commercial real estate — owner occupied
|
(63
|
)
|
(1,937
|
)
|
(20
|
)
|
(43
|
)
|
(291
|
)
|
504
|
|
(1,198
|
)
|
|||||||
Commercial and business lending
|
(33,563
|
)
|
(10,508
|
)
|
(18,584
|
)
|
(14,979
|
)
|
(4,877
|
)
|
(4,205
|
)
|
(5,119
|
)
|
|||||||
Commercial real estate — investor
|
679
|
|
673
|
|
(560
|
)
|
1,239
|
|
(665
|
)
|
(496
|
)
|
(1,856
|
)
|
|||||||
Real estate construction
|
(247
|
)
|
1,416
|
|
(219
|
)
|
(28
|
)
|
140
|
|
(38
|
)
|
673
|
|
|||||||
Commercial real estate lending
|
432
|
|
2,089
|
|
(779
|
)
|
1,211
|
|
(525
|
)
|
(534
|
)
|
(1,183
|
)
|
|||||||
Total commercial
|
(33,131
|
)
|
(8,419
|
)
|
(19,363
|
)
|
(13,768
|
)
|
(5,402
|
)
|
(4,739
|
)
|
(6,302
|
)
|
|||||||
Residential mortgage
|
(1,989
|
)
|
(2,283
|
)
|
(757
|
)
|
(1,232
|
)
|
(714
|
)
|
(1,562
|
)
|
(1,278
|
)
|
|||||||
Home equity revolving lines of credit
|
(627
|
)
|
(1,466
|
)
|
275
|
|
(902
|
)
|
(294
|
)
|
(533
|
)
|
(246
|
)
|
|||||||
Home equity loans junior liens
|
(202
|
)
|
(541
|
)
|
42
|
|
(244
|
)
|
(623
|
)
|
(358
|
)
|
(118
|
)
|
|||||||
Home equity
|
(829
|
)
|
(2,007
|
)
|
317
|
|
(1,146
|
)
|
(917
|
)
|
(891
|
)
|
(364
|
)
|
|||||||
Other consumer
|
(1,535
|
)
|
(1,555
|
)
|
(787
|
)
|
(748
|
)
|
(739
|
)
|
(810
|
)
|
(786
|
)
|
|||||||
Total consumer
|
(4,353
|
)
|
(5,845
|
)
|
(1,227
|
)
|
(3,126
|
)
|
(2,370
|
)
|
(3,263
|
)
|
(2,428
|
)
|
|||||||
Total net charge offs
|
$
|
(37,484
|
)
|
$
|
(14,264
|
)
|
$
|
(20,590
|
)
|
$
|
(16,894
|
)
|
$
|
(7,772
|
)
|
$
|
(8,002
|
)
|
$
|
(8,730
|
)
|
Commercial real estate-investor and Real estate construction net charge off detail:
|
|
|
|
|
|
|
|
||||||||||||||
Multi-family
|
$
|
(2
|
)
|
$
|
(4
|
)
|
$
|
—
|
|
$
|
(2
|
)
|
$
|
—
|
|
$
|
(35
|
)
|
$
|
—
|
|
Non-owner occupied
|
681
|
|
677
|
|
(560
|
)
|
1,241
|
|
(665
|
)
|
(461
|
)
|
(1,856
|
)
|
|||||||
Commercial real estate — investor
|
$
|
679
|
|
$
|
673
|
|
$
|
(560
|
)
|
$
|
1,239
|
|
$
|
(665
|
)
|
$
|
(496
|
)
|
$
|
(1,856
|
)
|
1-4 family construction
|
$
|
(33
|
)
|
$
|
484
|
|
$
|
16
|
|
$
|
(49
|
)
|
$
|
235
|
|
$
|
31
|
|
$
|
280
|
|
All other construction
|
(214
|
)
|
932
|
|
(235
|
)
|
21
|
|
(95
|
)
|
(69
|
)
|
393
|
|
|||||||
Real estate construction
|
$
|
(247
|
)
|
$
|
1,416
|
|
$
|
(219
|
)
|
$
|
(28
|
)
|
$
|
140
|
|
$
|
(38
|
)
|
$
|
673
|
|
Ratios:
|
|
|
|
|
|
|
|
||||||||||||||
Allowance for loan losses to total loans
|
1.35 %
|
|
1.43
|
%
|
1.35
|
%
|
1.44
|
%
|
1.47
|
%
|
1.42
|
%
|
1.43
|
%
|
|||||||
Allowance for loan losses to net charge offs (Annualized)
|
3.6x
|
|
9.1x
|
|
3.2x
|
|
4.1x
|
|
8.9x
|
|
8.3x
|
|
7.5x
|
|
(A)
|
Includes the allowance for loan losses and the allowance for unfunded commitments.
|
(B)
|
Includes the provision for loan losses and the provision for unfunded commitments.
|
(in basis points)
|
YTD June 30,
2016
|
YTD June 30,
2015
|
June 30,
2016 |
March 31,
2016 |
December 31,
2015 |
September 30,
2015 |
June 30,
2015 |
|||||||
|
|
|||||||||||||
Net loan (charge offs) recoveries:
|
|
|
|
|
|
|
|
|||||||
Commercial and industrial
|
(106
|
)
|
(29
|
)
|
(114
|
)
|
(97
|
)
|
(31
|
)
|
(31
|
)
|
(25
|
)
|
Commercial real estate — owner occupied
|
(1
|
)
|
(39
|
)
|
(1
|
)
|
(2
|
)
|
(12
|
)
|
21
|
|
(48
|
)
|
Commercial and business lending
|
(92
|
)
|
(30
|
)
|
(100
|
)
|
(85
|
)
|
(28
|
)
|
(24
|
)
|
(29
|
)
|
Commercial real estate — investor
|
4
|
|
4
|
|
(7
|
)
|
15
|
|
(8
|
)
|
(6
|
)
|
(24
|
)
|
Real estate construction
|
(4
|
)
|
28
|
|
(7
|
)
|
(1
|
)
|
5
|
|
(1
|
)
|
26
|
|
Commercial real estate lending
|
2
|
|
10
|
|
(7
|
)
|
11
|
|
(5
|
)
|
(5
|
)
|
(11
|
)
|
Total commercial
|
(56
|
)
|
(15
|
)
|
(64
|
)
|
(48
|
)
|
(19
|
)
|
(17
|
)
|
(22
|
)
|
Residential mortgage
|
(7
|
)
|
(9
|
)
|
(5
|
)
|
(8
|
)
|
(5
|
)
|
(11
|
)
|
(9
|
)
|
Home equity revolving lines of credit
|
(14
|
)
|
(34
|
)
|
13
|
|
(41
|
)
|
(13
|
)
|
(24
|
)
|
(11
|
)
|
Home equity loans junior liens
|
(35
|
)
|
(71
|
)
|
15
|
|
(83
|
)
|
(195
|
)
|
(104
|
)
|
(32
|
)
|
Home equity
|
(17
|
)
|
(39
|
)
|
13
|
|
(46
|
)
|
(36
|
)
|
(35
|
)
|
(14
|
)
|
Other consumer
|
(75
|
)
|
(71
|
)
|
(78
|
)
|
(72
|
)
|
(69
|
)
|
(75
|
)
|
(73
|
)
|
Total consumer
|
(12
|
)
|
(17
|
)
|
(7
|
)
|
(17
|
)
|
(13
|
)
|
(18
|
)
|
(14
|
)
|
Total net charge offs
|
(39
|
)
|
(16
|
)
|
(42
|
)
|
(36
|
)
|
(17
|
)
|
(17
|
)
|
(19
|
)
|
Commercial real estate-investor and Real estate construction net charge off detail:
|
|
|
|
|
|
|
|
|||||||
Multi-family
|
N\M
|
|
N\M
|
|
N\M
|
|
N\M
|
|
N\M
|
|
(2
|
)
|
N\M
|
|
Non-owner occupied
|
6
|
|
6
|
|
(9
|
)
|
21
|
|
(11
|
)
|
(8
|
)
|
(34
|
)
|
Commercial real estate — investor
|
4
|
|
4
|
|
(7
|
)
|
15
|
|
(8
|
)
|
(6
|
)
|
(24
|
)
|
1-4 family construction
|
(2
|
)
|
31
|
|
2
|
|
(6
|
)
|
29
|
|
4
|
|
35
|
|
All other construction
|
(5
|
)
|
27
|
|
(11
|
)
|
1
|
|
(5
|
)
|
(3
|
)
|
22
|
|
Real estate construction
|
(4
|
)
|
28
|
|
(7
|
)
|
(1
|
)
|
5
|
|
(1
|
)
|
26
|
|
(A)
|
Annualized ratio of net charge offs to average loans by loan type.
|
•
|
YTD June net charge offs of
$37 million
increased $23 million from the comparable period in 2015, primarily due to the charge off of three large oil and gas related credits. See Tables
10
and
11
for additional information regarding the activity in the allowance for loan losses.
|
•
|
Total loans increased
$1.1 billion
(
6%
) during the first the half of 2016, including a
$515 million
(
7%
) increase in commercial and business lending, a
$385 million
(
9%
) increase in commercial real estate lending, and a
$201 million
(
3%
) increase in total consumer. Compared to
June 30, 2015
, total loans increased
$1.5 billion
(
8%
), including a
$563 million
(
13%
) increase in commercial real estate lending, a
$559 million
(
8%
) increase in total consumer and a
$390 million
(
5%
) increase in commercial and business lending. See section “Loans” for additional information on the changes in the loan portfolio and see section “Credit Risk” for discussion about credit risk management for each loan type.
|
•
|
Total nonaccrual loans increased
$104 million
from the fourth quarter of 2015 primarily due to the risk migration of oil and gas related credits. Nonaccrual loans increased $122 million from
June 30, 2015
, also principally related to the risk migration within the oil and gas loan portfolio. See also Note
7
, “
Loans
,” of the notes to consolidated financial statements and section “Nonaccrual Loans, Potential Problem Loans, and Other Real Estate Owned” for additional disclosures on the changes in asset quality.
|
•
|
Potential problem loans increased
$155 million
from
December 31, 2015
and increased
$257 million
from
June 30, 2015
, primarily due to the risk migration on general commercial and oil and gas related credits. See Table 9 for additional information on the changes in potential problem loans.
|
•
|
The allowance for loan losses attributable to oil and gas related credits (included within the commercial and industrial allowance for loan losses) was flat at
$42 million
for
June 30, 2016
and
December 31, 2015
compared to
$26 million
at
June 30, 2015
. See also Oil and gas lending with the "Credit Risk" section for additional information.
|
•
|
The allowance for unfunded commitments of
$27 million
increased $3 million during the first half of 2016, driven by risk rating migration and new volumes.
|
($ in Thousands)
|
June 30, 2016
|
|
March 31, 2016
|
|
December 31, 2015
|
|
September 30, 2015
|
|
June 30, 2015
|
|||||||||||||||||||||||||
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|||||||||||||||
Noninterest-bearing demand
|
$
|
5,039,336
|
|
|
25
|
%
|
|
$
|
5,272,685
|
|
|
26
|
%
|
|
$
|
5,562,466
|
|
|
27
|
%
|
|
$
|
4,657,261
|
|
|
23
|
%
|
|
$
|
4,332,171
|
|
|
23
|
%
|
Savings
|
1,451,801
|
|
|
7
|
|
|
1,426,951
|
|
|
7
|
|
|
1,334,420
|
|
|
6
|
|
|
1,346,407
|
|
|
6
|
|
|
1,359,478
|
|
|
7
|
|
|||||
Interest-bearing demand
|
3,789,138
|
|
|
19
|
|
|
3,698,941
|
|
|
18
|
|
|
3,445,000
|
|
|
17
|
|
|
3,416,429
|
|
|
17
|
|
|
3,576,311
|
|
|
19
|
|
|||||
Money market
|
8,448,543
|
|
|
42
|
|
|
8,718,841
|
|
|
42
|
|
|
9,102,977
|
|
|
43
|
|
|
9,516,503
|
|
|
46
|
|
|
8,374,186
|
|
|
43
|
|
|||||
Brokered CDs
|
46,268
|
|
|
—
|
|
|
41,440
|
|
|
—
|
|
|
42,443
|
|
|
—
|
|
|
42,689
|
|
|
—
|
|
|
39,760
|
|
|
—
|
|
|||||
Other time
|
1,517,764
|
|
|
7
|
|
|
1,526,602
|
|
|
7
|
|
|
1,520,359
|
|
|
7
|
|
|
1,579,106
|
|
|
8
|
|
|
1,587,657
|
|
|
8
|
|
|||||
Total deposits
|
$
|
20,292,850
|
|
|
100
|
%
|
|
$
|
20,685,460
|
|
|
100
|
%
|
|
$
|
21,007,665
|
|
|
100
|
%
|
|
$
|
20,558,395
|
|
|
100
|
%
|
|
$
|
19,269,563
|
|
|
100
|
%
|
Customer funding
|
464,880
|
|
|
|
|
508,262
|
|
|
|
|
383,568
|
|
|
|
|
524,630
|
|
|
|
|
433,044
|
|
|
|
||||||||||
Total deposits and customer funding
|
$
|
20,757,730
|
|
|
|
|
$
|
21,193,722
|
|
|
|
|
$
|
21,391,233
|
|
|
|
|
$
|
21,083,025
|
|
|
|
|
$
|
19,702,607
|
|
|
|
|||||
Network transaction deposits (1)
|
$
|
3,141,214
|
|
|
|
|
$
|
3,399,054
|
|
|
|
|
$
|
3,174,911
|
|
|
|
|
$
|
3,207,867
|
|
|
|
|
$
|
2,920,939
|
|
|
|
|||||
Total deposits and customer funding, excluding Brokered CDs and network transaction deposits
|
$
|
17,570,248
|
|
|
|
|
$
|
17,753,228
|
|
|
|
|
$
|
18,173,879
|
|
|
|
|
$
|
17,832,469
|
|
|
|
|
$
|
16,741,908
|
|
|
|
|||||
Time deposits of $100,000 or more
|
$
|
486,228
|
|
|
|
|
$
|
480,469
|
|
|
|
|
$
|
465,950
|
|
|
|
|
$
|
511,070
|
|
|
|
|
$
|
470,092
|
|
|
|
|||||
Time deposits of more than $250,000
|
$
|
151,133
|
|
|
|
|
$
|
144,294
|
|
|
|
|
$
|
127,120
|
|
|
|
|
$
|
169,146
|
|
|
|
|
$
|
185,273
|
|
|
|
|||||
(1) Included above in interest-bearing demand and money market.
|
•
|
Deposits are the Corporation’s largest source of funds.
|
•
|
Total deposits decreased
$715 million
(
3%
) from December 31, 2015, primarily due to decreases in noninterest-bearing demand deposits and money market deposits. Total deposits increased
$1.0 billion
(
5%
) from
June 30, 2015
, primarily due to an increase in noninterest-bearing demand deposits.
|
•
|
Non-maturity deposits, which excludes brokered CDs and other time deposits, accounted for
93%
of our total deposits at
June 30, 2016
.
|
•
|
Included in the above amounts were
$3.1 billion
of network deposits, primarily sourced from other financial institutions and intermediaries. These represented
15%
of our total deposits at
June 30, 2016
.
|
•
|
Investment securities are an important tool to the Corporation’s liquidity objective, and can be pledged or sold to enhance liquidity, if necessary. See also Note
6
, “
Investment Securities
,” of the notes to consolidated financial statements for additional information on the Corporation's investment securities portfolio, including investment securities pledged.
|
•
|
The Bank pledges eligible loans to both the Federal Reserve Bank and the FHLB as collateral to establish lines of credit and borrow from these entities. Based on the amount of collateral pledged, the FHLB established a collateral value from which the Bank may draw advances against the collateral. Also, the collateral is used to enable the FHLB to issue letters of credit in favor of public fund depositors of the Bank. As of
June 30, 2016
, the Bank had $1.2 billion available for future advances. The Federal Reserve Bank also establishes a collateral value of assets to support borrowings from the discount window. As of
June 30, 2016
, the Bank had $1.9 billion available for discount window borrowings.
|
•
|
The Parent Company has a $200 million commercial paper program, of which, $76 million was outstanding as of
June 30, 2016
.
|
•
|
Dividends and service fees from subsidiaries, as well as the proceeds from issuance of capital are also funding sources for the Parent Company.
|
•
|
The Parent Company has filed a shelf registration statement with the SEC under which the Parent Company may, from time to time, offer shares of the Corporation’s common stock in connection with acquisitions of businesses, assets or securities of other companies.
|
•
|
The Parent Company also has filed a universal shelf registration statement with the SEC, under which the Parent Company may offer the following securities, either separately or in units: debt securities, preferred stock, depositary shares, common stock, and warrants.
|
•
|
The Bank may also issue institutional certificates of deposit, network transaction deposits, and brokered certificates of deposit.
|
|
Moody’s
|
|
S&P*
|
Bank short-term deposits
|
P1
|
|
-
|
Bank long-term
|
A1
|
|
BBB+
|
Corporation short-term
|
P2
|
|
-
|
Corporation long-term
|
Baa1
|
|
BBB
|
Outlook
|
Negative
|
|
Stable
|
* - Standard and Poor's
|
|
|
|
|
Estimated % Change in Rate Sensitive Earnings at Risk Over 12 Months
|
||||||||||
|
Dynamic Forecast
June 30, 2016 |
|
Static Forecast
June 30, 2016 |
|
Dynamic Forecast
December 31, 2015 |
|
Static Forecast
December 31, 2015 |
||||
Instantaneous Rate Change
|
|
|
|
|
|
|
|
||||
100 bp increase in interest rates
|
1.4
|
%
|
|
0.8
|
%
|
|
1.6
|
%
|
|
2.1
|
%
|
200 bp increase in interest rates
|
2.5
|
%
|
|
1.4
|
%
|
|
3.0
|
%
|
|
4.4
|
%
|
|
June 30, 2016
|
|
December 31, 2015
|
||
Instantaneous Rate Change
|
|
|
|
||
100 bp increase in interest rates
|
(2.8
|
)%
|
|
(1.7
|
)%
|
200 bp increase in interest rates
|
(6.2
|
)%
|
|
(3.7
|
)%
|
June 30, 2016
|
One Year
or Less
|
|
One to
Three Years
|
|
Three to
Five Years
|
|
Over
Five Years
|
|
Total
|
||||||||||
|
($ in Thousands)
|
||||||||||||||||||
Time deposits
|
$
|
848,242
|
|
|
$
|
450,540
|
|
|
$
|
256,693
|
|
|
$
|
8,557
|
|
|
$
|
1,564,032
|
|
Short-term funding
|
1,911,557
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,911,557
|
|
|||||
Long-term funding
|
500,016
|
|
|
2,115,000
|
|
|
648,919
|
|
|
247,540
|
|
|
3,511,475
|
|
|||||
Operating leases
|
10,417
|
|
|
18,635
|
|
|
15,931
|
|
|
17,968
|
|
|
62,951
|
|
|||||
Commitments to extend credit
|
3,872,344
|
|
|
2,476,502
|
|
|
1,388,635
|
|
|
192,937
|
|
|
7,930,418
|
|
|||||
Total
|
$
|
7,142,576
|
|
|
$
|
5,060,677
|
|
|
$
|
2,310,178
|
|
|
$
|
467,002
|
|
|
$
|
14,980,433
|
|
|
Quarter Ended
|
||||||||||||||||||
|
June 30,
2016 |
|
March 31,
2016 |
|
December 31,
2015 |
|
September 30,
2015 |
|
June 30,
2015 |
||||||||||
|
(In Thousands, except per share data)
|
||||||||||||||||||
Risk-based Capital (2)
|
|
|
|
|
|
|
|
|
|
||||||||||
Common equity Tier 1
|
$
|
1,940,704
|
|
|
$
|
1,902,593
|
|
|
$
|
1,897,944
|
|
|
$
|
1,865,289
|
|
|
$
|
1,825,478
|
|
Tier 1 capital
|
2,059,661
|
|
|
2,021,125
|
|
|
2,016,861
|
|
|
1,983,612
|
|
|
1,941,694
|
|
|||||
Total capital
|
2,573,941
|
|
|
2,526,653
|
|
|
2,515,861
|
|
|
2,481,661
|
|
|
2,436,594
|
|
|||||
Total risk-weighted assets
|
21,168,161
|
|
|
20,453,744
|
|
|
19,929,963
|
|
|
19,866,379
|
|
|
19,610,281
|
|
|||||
Common equity Tier 1 capital ratio
|
9.17
|
%
|
|
9.30
|
%
|
|
9.52
|
%
|
|
9.39
|
%
|
|
9.31
|
%
|
|||||
Tier 1 capital ratio
|
9.73
|
%
|
|
9.88
|
%
|
|
10.12
|
%
|
|
9.98
|
%
|
|
9.90
|
%
|
|||||
Total capital ratio
|
12.16
|
%
|
|
12.35
|
%
|
|
12.62
|
%
|
|
12.49
|
%
|
|
12.43
|
%
|
|||||
Tier 1 leverage ratio
|
7.43
|
%
|
|
7.55
|
%
|
|
7.60
|
%
|
|
7.53
|
%
|
|
7.53
|
%
|
|||||
Selected Equity and Performance Ratios (1) (2)
|
|
|
|
|
|
|
|
|
|
||||||||||
Total stockholders’ equity / assets
|
10.43
|
%
|
|
10.58
|
%
|
|
10.60
|
%
|
|
10.76
|
%
|
|
10.69
|
%
|
|||||
Return on average assets
|
0.69
|
%
|
|
0.62
|
%
|
|
0.62
|
%
|
|
0.72
|
%
|
|
0.74
|
%
|
(1)
|
The ratio tangible common equity to tangible assets excludes goodwill and other intangible assets,net, which is a non-GAAP financial measure. This financial measure has been included as it's considered to be a critical metric with which to analyze and evaluate financial condition and capital strength. See Note 8 for additional information on goodwill, core deposit intangibles, and other intangibles.
|
(2)
|
The Federal Reserve establishes regulatory capital adequacy requirements, including well-capitalized standards for the Corporation. The regulatory capital requirements effective for the Corporation follow Basel III, subject to certain transition provisions. These regulatory capital measurements are used by
|
|
YTD
|
Quarter Ended
|
|||||||||||||||||||
|
June
2016
|
June
2015
|
June 30,
2016 |
March 31,
2016 |
December 31,
2015 |
September 30,
2015 |
June 30,
2015 |
||||||||||||||
|
|
|
(In Thousands, except per share data)
|
||||||||||||||||||
Selected Equity and Performance Ratios (1) (2)
|
|
|
|
|
|
|
|
||||||||||||||
Tangible common equity / tangible assets
|
6.85
|
%
|
6.86
|
%
|
6.85
|
%
|
6.89
|
%
|
6.85
|
%
|
6.97
|
%
|
6.86
|
%
|
|||||||
Return on average equity
|
6.18
|
%
|
6.77
|
%
|
6.19
|
%
|
5.76
|
%
|
5.77
|
%
|
6.72
|
%
|
6.89
|
%
|
|||||||
Return on average tangible common equity
|
9.38
|
%
|
10.39
|
%
|
10.04
|
%
|
8.72
|
%
|
8.78
|
%
|
10.35
|
%
|
10.62
|
%
|
|||||||
Return on average Common equity Tier 1
|
9.21
|
%
|
10.38
|
%
|
9.86
|
%
|
8.55
|
%
|
8.60
|
%
|
10.20
|
%
|
10.55
|
%
|
|||||||
Tangible Common Equity (1)
|
|
|
|
|
|
|
|
||||||||||||||
Common equity
|
|
|
$
|
2,909,946
|
|
$
|
2,862,151
|
|
$
|
2,815,867
|
|
$
|
2,832,418
|
|
$
|
2,782,376
|
|
||||
Goodwill and other intangible assets, net
|
|
|
(988,378
|
)
|
(988,917
|
)
|
(985,302
|
)
|
(985,822
|
)
|
(986,707
|
)
|
|||||||||
Tangible common equity
|
|
|
$
|
1,921,568
|
|
$
|
1,873,234
|
|
$
|
1,830,565
|
|
$
|
1,846,596
|
|
$
|
1,795,669
|
|
||||
Tangible Assets Reconciliation (1)
|
|
|
|
|
|
|
|
||||||||||||||
Total assets
|
|
|
$
|
29,038,699
|
|
$
|
28,178,867
|
|
$
|
27,711,835
|
|
$
|
27,463,766
|
|
$
|
27,181,377
|
|
||||
Goodwill and other intangible assets, net
|
|
|
(988,378
|
)
|
(988,917
|
)
|
(985,302
|
)
|
(985,822
|
)
|
(986,707
|
)
|
|||||||||
Tangible assets
|
|
|
$
|
28,050,321
|
|
$
|
27,189,950
|
|
$
|
26,726,533
|
|
$
|
26,477,944
|
|
$
|
26,194,670
|
|
||||
Average Tangible Common Equity and Common Equity Tier 1 Reconciliation (1) (2)
|
|
|
|
|
|
|
|
||||||||||||||
Common equity
|
$
|
2,859,077
|
|
$
|
2,789,698
|
|
$
|
2,868,772
|
|
$
|
2,849,382
|
|
$
|
2,819,267
|
|
$
|
2,797,630
|
|
$
|
2,794,341
|
|
Goodwill and other intangible assets, net
|
(988,913
|
)
|
(978,867
|
)
|
(988,699
|
)
|
(989,127
|
)
|
(985,605
|
)
|
(986,360
|
)
|
(987,071
|
)
|
|||||||
Tangible common equity
|
1,870,164
|
|
1,810,831
|
|
1,880,073
|
|
1,860,255
|
|
1,833,662
|
|
1,811,270
|
|
1,807,270
|
|
|||||||
Less: Accumulated other comprehensive income / loss
|
2,343
|
|
(17,081
|
)
|
1,365
|
|
3,320
|
|
4,266
|
|
(6,601
|
)
|
(16,305
|
)
|
|||||||
Less: Deferred tax assets/deferred tax liabilities, net
|
32,354
|
|
18,311
|
|
31,803
|
|
32,906
|
|
34,199
|
|
32,767
|
|
28,854
|
|
|||||||
Average common equity Tier 1
|
$
|
1,904,861
|
|
$
|
1,812,061
|
|
$
|
1,913,241
|
|
$
|
1,896,481
|
|
$
|
1,872,127
|
|
$
|
1,837,436
|
|
$
|
1,819,819
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Efficiency Ratio Reconciliation (3)
|
|
|
|
|
|
|
|
||||||||||||||
Federal Reserve efficiency ratio
|
69.18
|
%
|
70.24
|
%
|
69.34
|
%
|
69.01
|
%
|
70.49
|
%
|
68.85
|
%
|
70.23
|
%
|
|||||||
Fully tax-equivalent adjustment
|
(1.36
|
)%
|
(1.37
|
)%
|
(1.36
|
)%
|
(1.37
|
)%
|
(1.52
|
)%
|
(1.38
|
)%
|
(1.35
|
)%
|
|||||||
Other intangible amortization
|
(0.21
|
)%
|
(0.34
|
)%
|
(0.21
|
)%
|
(0.20
|
)%
|
(0.21
|
)%
|
(0.36
|
)%
|
(0.35
|
)%
|
|||||||
Fully tax-equivalent efficiency ratio
|
67.61
|
%
|
68.53
|
%
|
67.77
|
%
|
67.44
|
%
|
68.76
|
%
|
67.11
|
%
|
68.53
|
%
|
(1)
|
The ratio tangible common equity to tangible assets excludes goodwill and other intangible assets, net, which is a non-GAAP financial measure. This financial measure has been included as it is considered to be a critical metric with which to analyze and evaluate financial condition and capital strength.
|
(2)
|
The Federal Reserve establishes regulatory capital requirements, including well-capitalized standards for the Corporation. The regulatory capital requirements effective for the Corporation follow Basel III, subject to certain transition provisions. These regulatory capital measurements are used by management, regulators, investors, and analysts to assess, monitor and compare the quality and composition of our capital with the capital of other financial services companies.
|
(3)
|
The efficiency ratio as defined by the Federal Reserve guidance is noninterest expense (which includes the provision for unfunded commitments) divided by the sum of net interest income plus noninterest income, excluding investment securities gains / losses, net. The fully tax-equivalent efficiency ratio is noninterest expense (which includes the provision for unfunded commitments), excluding other intangible amortization, divided by the sum of fully tax-equivalent net interest income plus noninterest income, excluding investment securities gains / losses, net. Management believes the fully tax-equivalent efficiency ratio, which adjusts net interest income for the tax-favored status of certain loans and investment securities, to be the preferred industry measurement as it enhances the comparability of net interest income arising from taxable and tax-exempt sources.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
PART II -
|
OTHER INFORMATION
|
ITEM 1.
|
Legal Proceedings
|
ITEM 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
(a)
|
During the second quarter of 2016, the Corporation repurchased approximately 70,000 common shares for minimum tax withholding settlements on equity compensation. These purchases do not count against the maximum number of shares that may yet be purchased under the Board of Directors’ authorization.
|
(b)
|
On April 21, 2015, the Board of Directors authorized the repurchase of up to $125 million of the Corporation's common stock, of which approximately $88 million remained available to repurchase as of June 30, 2016. Using the closing stock price on June 30, 2016 of $17.15, a total of approximately 5.1 million shares of common stock remained available to be repurchased under the previously approved Board authorizations as of June 30, 2016.
|
(a)
|
In 2011, the Corporation issued 2,600,000 depositary shares, each representing a 1/40th interest in a share of the Corporation’s 8.00% Perpetual Preferred Stock, Series B (the “Series B Preferred Stock”). During 2013, the Board of Directors authorized the repurchase of up to $10 million of the Series B Preferred Stock. As of June 30, 2016, approximately $3.3 million remained available under this repurchase authorization. Using the closing price on June 30, 2016 of $25.48, a total of approximately 131,000 shares remained available to be repurchased under the previously approved Board authorization as of June 30, 2016.
|
Series C Preferred Stock Depositary Share Purchases:
|
||||||||||||
|
Total Number of
Shares Purchased
|
|
Average Price
Paid per Share
|
|
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans
or Programs
|
|
Maximum Number of
Shares that May Yet
Be Purchased Under
the Plans
or Programs(a)
|
|||||
Period
|
|
|
|
|
|
|
|
|||||
April 1, 2016 - April 30, 2016
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
May 1, 2016 - May 31, 2016
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
June 1, 2016 - June 30, 2016
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
(a)
|
In June 2015, the Corporation issued 2,600,000 depositary shares, each representing a 1/40th interest in a share of the Corporation’s 6.125% Non-Cumulative Perpetual Preferred Stock, Series C (the “Series C Preferred Stock”). On August 28, 2015, the Board of Directors authorized the repurchase of up to $10 million of the Series C Preferred Stock. As of June 30, 2016, $10 million remained available under this repurchase authorization as the Corporation has not yet repurchased any of the Series C Preferred Stock under this authorization. Using the closing price on June 30, 2016 of $26.77, a total of approximately 373,000 shares remained available to be repurchased under the previously approved Board authorization as of June 30, 2016.
|
ITEM 6.
|
Exhibits
|
|
|
|
|
|
ASSOCIATED BANC-CORP
|
|
|
(Registrant)
|
|
|
|
Date: July 28, 2016
|
|
/s/ Philip B. Flynn
|
|
|
Philip B. Flynn
|
|
|
President and Chief Executive Officer
|
|
|
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Date: July 28, 2016
|
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/s/ Christopher J. Del Moral-Niles
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Christopher J. Del Moral-Niles
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Chief Financial Officer and Principal Accounting Officer
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Institutions on
September 14, 2011
(date) was
|
(X) Check any that apply
|
☒Incorrect at the time of filing (
Complete items 1, 2, 3, 4, & 6
)
|
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☐Defectively executed (
Complete items 1, 2, 3, & 5
)
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☐Defective in attestation, seal verification or
acknowledgment (
Complete items 1, 2, 3, & 6
)
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4. Enter the statement in its corrected condition:
(1) Subject to the further terms and conditions provided herein, the Corporation, at its option, subject to the approval of the Appropriate Federal Banking Agency, may, upon notice given as provided in Section (v)(B), redeem shares of the Series B Preferred Stock at the time outstanding in whole or in part, from time to time, on any Dividend Payment Date on or after the Dividend Payment Date on September 15, 2016 (“
Optional Redemption
”).
Notwithstanding the foregoing, within 90 days following the occurrence of a Regulatory Capital Treatment Event, the Corporation, at its option, subject to the approval of the Appropriate Federal Banking Agency, may redeem, at any time, all (but not less than all) of the shares of Series B Preferred Stock at the time outstanding, upon notice given as provided in Section (v)(B) below, at the redemption price applicable on such date of redemption (“
Regulatory Event Redemption
”).
|
|
|
|
Date: July 28, 2016
|
|
/s/ Philip B. Flynn
|
|
|
Philip B. Flynn
|
|
|
President and Chief Executive Officer
|
|
|
|
Date: July 28, 2016
|
|
/s/ Christopher J. Del Moral-Niles
|
|
|
Christopher J. Del Moral-Niles
|
|
|
Chief Financial Officer
|
|
|
|
/s/ Philip B. Flynn
|
|
Philip B. Flynn
|
|
Chief Executive Officer
|
|
July 28, 2016
|
|
|
|
/s/ Christopher J. Del Moral-Niles
|
|
Christopher J. Del Moral-Niles
|
|
Chief Financial Officer
|
|
July 28, 2016
|