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, 2017
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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, 2017
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December 31, 2016
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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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396,677
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$
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446,558
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Interest-bearing deposits in other financial institutions
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126,232
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149,175
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Federal funds sold and securities purchased under agreements to resell
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43,000
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46,500
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Investment securities held to maturity, at amortized cost
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2,255,395
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1,273,536
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Investment securities available for sale, at fair value
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3,687,470
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4,680,226
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Federal Home Loan Bank and Federal Reserve Bank stocks, at cost
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181,180
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140,001
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Residential loans held for sale
(1)
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41,620
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108,010
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Commercial loans held for sale
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4,772
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12,474
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Loans
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20,783,069
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20,054,716
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Allowance for loan losses
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(281,101
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)
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(278,335
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)
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Loans, net
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20,501,968
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19,776,381
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Premises and equipment, net
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328,404
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330,315
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Goodwill
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972,006
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971,951
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Mortgage servicing rights, net
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59,395
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61,476
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Other intangible assets
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14,530
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15,377
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Trading assets
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48,576
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52,398
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Other assets
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1,107,800
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1,074,937
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Total assets
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$
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29,769,025
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$
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29,139,315
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Noninterest-bearing demand deposits
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$
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5,038,162
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$
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5,392,208
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Interest-bearing deposits
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16,580,018
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16,496,240
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Total deposits
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21,618,180
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21,888,448
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Federal funds purchased and securities sold under agreements to repurchase
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607,669
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508,347
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Other short-term funding
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794,813
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583,688
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Long-term funding
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3,262,120
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2,761,795
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Trading liabilities
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47,143
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51,103
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Accrued expenses and other liabilities
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247,598
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254,622
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Total liabilities
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26,577,523
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26,048,003
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Stockholders’ equity
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Preferred equity
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159,929
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159,929
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Common equity:
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Common stock
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1,630
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1,630
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Surplus
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1,474,301
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1,459,498
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Retained earnings
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1,747,632
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1,695,764
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Accumulated other comprehensive income (loss)
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(53,470
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)
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(54,679
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)
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Treasury stock, at cost
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(138,520
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)
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(170,830
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)
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Total common equity
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3,031,573
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2,931,383
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Total stockholders’ equity
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3,191,502
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3,091,312
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Total liabilities and stockholders’ equity
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$
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29,769,025
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$
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29,139,315
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Preferred shares issued
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165,000
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165,000
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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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163,030,209
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Common shares authorized (par value $0.01 per share)
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250,000,000
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250,000,000
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Treasury shares of common stock
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9,181,834
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10,909,362
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(1)
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Effective January 1, 2017, residential loans originated for sale are accounted for under the fair value option. Prior periods have not been restated. For more information on this accounting policy change, please refer to Note 3 to the Notes to the Consolidated Financial Statements.
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Three months ended June 30,
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Six months ended June 30,
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2017
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2016
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2017
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2016
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(In Thousands, except per share data)
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INTEREST INCOME
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Interest and fees on loans
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$
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184,246
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$
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163,059
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$
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357,895
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$
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322,715
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Interest and dividends on investment securities:
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Taxable
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23,658
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24,270
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47,133
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49,786
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Tax-exempt
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8,143
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7,894
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16,272
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15,724
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Other interest
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1,553
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1,318
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3,089
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2,385
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Total interest income
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217,600
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196,541
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424,389
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390,610
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INTEREST EXPENSE
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Interest on deposits
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21,180
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11,678
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38,104
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23,444
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Interest on Federal funds purchased and securities sold under agreements to repurchase
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824
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378
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1,339
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674
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Interest on other short-term funding
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1,827
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845
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2,907
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1,360
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Interest on long-term funding
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9,950
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6,923
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17,946
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16,428
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Total interest expense
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33,781
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19,824
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60,296
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41,906
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NET INTEREST INCOME
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183,819
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176,717
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364,093
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348,704
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Provision for credit losses
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12,000
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14,000
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21,000
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34,000
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||||
Net interest income after provision for credit losses
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171,819
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162,717
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343,093
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314,704
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NONINTEREST INCOME
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||||||||
Trust service fees
|
12,346
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11,509
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24,281
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22,956
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||||
Service charges on deposit accounts
|
16,030
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16,444
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32,386
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32,717
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|
||||
Card-based and other nondeposit fees
|
13,764
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12,717
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26,229
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24,708
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|
||||
Insurance commissions
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20,853
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22,005
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42,473
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43,387
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|
||||
Brokerage and annuity commissions
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4,346
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4,098
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8,679
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7,892
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|
||||
Mortgage banking, net
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5,027
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4,067
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9,606
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8,271
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|
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Capital market fees, net
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4,042
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3,793
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|
7,925
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7,331
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Bank owned life insurance income
|
3,899
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|
2,973
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|
6,514
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|
7,743
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|
||||
Asset gains (losses), net
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(466
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)
|
|
(343
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)
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|
(700
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)
|
|
181
|
|
||||
Investment securities gains, net
|
356
|
|
|
3,116
|
|
|
356
|
|
|
6,214
|
|
||||
Other
|
2,213
|
|
|
1,789
|
|
|
4,492
|
|
|
3,960
|
|
||||
Total noninterest income
|
82,410
|
|
|
82,168
|
|
|
162,241
|
|
|
165,360
|
|
||||
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
||||||||
Personnel expense
|
104,683
|
|
|
102,129
|
|
|
209,102
|
|
|
203,527
|
|
||||
Occupancy
|
12,832
|
|
|
13,215
|
|
|
28,051
|
|
|
27,017
|
|
||||
Equipment
|
5,234
|
|
|
5,396
|
|
|
10,719
|
|
|
10,842
|
|
||||
Technology
|
15,473
|
|
|
14,450
|
|
|
29,893
|
|
|
28,714
|
|
||||
Business development and advertising
|
7,152
|
|
|
6,591
|
|
|
12,987
|
|
|
14,802
|
|
||||
Other intangible amortization
|
496
|
|
|
539
|
|
|
1,009
|
|
|
1,043
|
|
||||
Loan expense
|
2,974
|
|
|
3,442
|
|
|
5,594
|
|
|
6,663
|
|
||||
Legal and professional fees
|
5,711
|
|
|
4,856
|
|
|
9,877
|
|
|
9,881
|
|
||||
Foreclosure / OREO expense, net
|
1,182
|
|
|
1,330
|
|
|
2,687
|
|
|
3,207
|
|
||||
FDIC expense
|
8,000
|
|
|
8,750
|
|
|
16,000
|
|
|
16,500
|
|
||||
Other
|
12,579
|
|
|
13,662
|
|
|
24,088
|
|
|
26,135
|
|
||||
Total noninterest expense
|
176,316
|
|
|
174,360
|
|
|
350,007
|
|
|
348,331
|
|
||||
Income before income taxes
|
77,913
|
|
|
70,525
|
|
|
155,327
|
|
|
131,733
|
|
||||
Income tax expense
|
19,930
|
|
|
21,434
|
|
|
41,074
|
|
|
40,108
|
|
||||
Net income
|
57,983
|
|
|
49,091
|
|
|
114,253
|
|
|
91,625
|
|
||||
Preferred stock dividends
|
2,339
|
|
|
2,169
|
|
|
4,669
|
|
|
4,367
|
|
||||
Net income available to common equity
|
$
|
55,644
|
|
|
$
|
46,922
|
|
|
$
|
109,584
|
|
|
$
|
87,258
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.36
|
|
|
$
|
0.31
|
|
|
$
|
0.72
|
|
|
$
|
0.58
|
|
Diluted
|
$
|
0.36
|
|
|
$
|
0.31
|
|
|
$
|
0.71
|
|
|
$
|
0.58
|
|
Average common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
151,573
|
|
|
148,511
|
|
|
151,196
|
|
|
148,556
|
|
||||
Diluted
|
154,302
|
|
|
149,530
|
|
|
154,147
|
|
|
149,518
|
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||
|
2017
|
2016
|
2017
|
2016
|
||||||||
|
($ in Thousands)
|
|||||||||||
Net income
|
$
|
57,983
|
|
$
|
49,091
|
|
$
|
114,253
|
|
$
|
91,625
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
||||||||
Investment securities available for sale:
|
|
|
|
|
||||||||
Net unrealized gains
|
15,218
|
|
22,321
|
|
18,370
|
|
82,743
|
|
||||
Net unrealized loss on available for sale securities transferred to held to maturity securities
|
(9,474
|
)
|
—
|
|
(14,738
|
)
|
—
|
|
||||
Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities
|
(1,548
|
)
|
(1,452
|
)
|
(2,575
|
)
|
(3,024
|
)
|
||||
Reclassification adjustment for net gains realized in net income
(1)
|
—
|
|
(3,116
|
)
|
—
|
|
(6,214
|
)
|
||||
Income tax expense
|
(1,601
|
)
|
(6,773
|
)
|
(406
|
)
|
(28,048
|
)
|
||||
Other comprehensive income on investment securities available for sale
|
2,595
|
|
10,980
|
|
651
|
|
45,457
|
|
||||
Defined benefit pension and postretirement obligations:
|
|
|
|
|
||||||||
Amortization of prior service cost
|
(37
|
)
|
12
|
|
(75
|
)
|
25
|
|
||||
Amortization of actuarial loss
|
487
|
|
483
|
|
975
|
|
965
|
|
||||
Income tax expense
|
(171
|
)
|
(189
|
)
|
(342
|
)
|
(378
|
)
|
||||
Other comprehensive income on pension and postretirement obligations
|
279
|
|
306
|
|
558
|
|
612
|
|
||||
Total other comprehensive income
|
2,874
|
|
11,286
|
|
1,209
|
|
46,069
|
|
||||
Comprehensive income
|
$
|
60,857
|
|
$
|
60,377
|
|
$
|
115,462
|
|
$
|
137,694
|
|
(1)
|
Includes only available for sale securities.
|
|
Preferred Equity
|
|
Common Stock
|
|
Surplus
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury Stock
|
|
Total
|
||||||||||||||
|
(In Thousands, except per share data)
|
||||||||||||||||||||||||||
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 impact 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
|
|
Balance, December 31, 2016
|
$
|
159,929
|
|
|
$
|
1,630
|
|
|
$
|
1,459,498
|
|
|
$
|
1,695,764
|
|
|
$
|
(54,679
|
)
|
|
$
|
(170,830
|
)
|
|
$
|
3,091,312
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
114,253
|
|
|
—
|
|
|
—
|
|
|
114,253
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,209
|
|
|
—
|
|
|
1,209
|
|
|||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
115,462
|
|
|||||||||||||
Common stock issued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Stock-based compensation plans, net
|
—
|
|
|
—
|
|
|
1,102
|
|
|
(20,912
|
)
|
|
—
|
|
|
40,755
|
|
|
20,945
|
|
|||||||
Purchase of treasury stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,445
|
)
|
|
(8,445
|
)
|
|||||||
Cash dividends:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Common stock, $0.24 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(36,804
|
)
|
|
—
|
|
|
—
|
|
|
(36,804
|
)
|
|||||||
Preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,669
|
)
|
|
—
|
|
|
—
|
|
|
(4,669
|
)
|
|||||||
Stock-based compensation expense, net
|
—
|
|
|
—
|
|
|
12,667
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,667
|
|
|||||||
Other
|
—
|
|
|
—
|
|
|
1,034
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,034
|
|
|||||||
Balance, June 30, 2017
|
$
|
159,929
|
|
|
$
|
1,630
|
|
|
$
|
1,474,301
|
|
|
$
|
1,747,632
|
|
|
$
|
(53,470
|
)
|
|
$
|
(138,520
|
)
|
|
$
|
3,191,502
|
|
|
Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
($ in Thousands)
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
114,253
|
|
|
$
|
91,625
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Provision for credit losses
|
21,000
|
|
|
34,000
|
|
||
Depreciation and amortization
|
23,241
|
|
|
22,914
|
|
||
Addition to valuation allowance on mortgage servicing rights, net
|
275
|
|
|
2,120
|
|
||
Amortization of mortgage servicing rights
|
5,084
|
|
|
5,896
|
|
||
Amortization of other intangible assets
|
1,009
|
|
|
1,043
|
|
||
Amortization and accretion on earning assets, funding, and other, net
|
17,889
|
|
|
22,045
|
|
||
Tax impact of stock based compensation
|
4,035
|
|
|
395
|
|
||
Gain on sales of investment securities, net
|
(356
|
)
|
|
(6,214
|
)
|
||
Asset (gains) losses, net
|
700
|
|
|
(181
|
)
|
||
(Gain) loss on mortgage banking activities, net
|
4,287
|
|
|
(7,058
|
)
|
||
Mortgage loans originated and acquired for sale
|
(220,284
|
)
|
|
(517,838
|
)
|
||
Proceeds from sales of mortgage loans held for sale
|
364,128
|
|
|
491,980
|
|
||
Increase in interest receivable
|
(757
|
)
|
|
(4,875
|
)
|
||
Increase (decrease) in interest payable
|
2,653
|
|
|
(4,739
|
)
|
||
Net change in other assets and other liabilities
|
(38,650
|
)
|
|
(25,836
|
)
|
||
Net cash provided by operating activities
|
298,507
|
|
|
105,277
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Net increase in loans
|
(819,198
|
)
|
|
(1,281,291
|
)
|
||
Purchases of:
|
|
|
|
||||
Available for sale securities
|
(417,397
|
)
|
|
(495,453
|
)
|
||
Held to maturity securities
|
(70,969
|
)
|
|
(112,226
|
)
|
||
Federal Home Loan Bank and Federal Reserve Bank stocks
|
(166,869
|
)
|
|
(67,261
|
)
|
||
Premises, equipment, and software, net of disposals
|
(19,289
|
)
|
|
(81,461
|
)
|
||
Other assets
|
(6,498
|
)
|
|
(3,073
|
)
|
||
Proceeds from:
|
|
|
|
||||
Sales of available for sale securities
|
—
|
|
|
359,484
|
|
||
Sales of held to maturity securities
|
16,059
|
|
|
—
|
|
||
Sale of Federal Home Loan Bank and Federal Reserve Bank stocks
|
125,690
|
|
|
20,000
|
|
||
Prepayments, calls, and maturities of available for sale investment securities
|
389,251
|
|
|
371,440
|
|
||
Prepayments, calls, and maturities of held to maturity investment securities
|
80,976
|
|
|
37,172
|
|
||
Sales, prepayments, calls, and maturities of other assets
|
6,353
|
|
|
13,362
|
|
||
Net cash paid in acquisition
|
(217
|
)
|
|
(685
|
)
|
||
Net cash used in investing activities
|
(882,108
|
)
|
|
(1,239,992
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Net decrease in deposits
|
(270,268
|
)
|
|
(714,815
|
)
|
||
Net increase in short-term funding
|
310,447
|
|
|
1,077,141
|
|
||
Repayment of long-term funding
|
(12
|
)
|
|
(430,018
|
)
|
||
Proceeds from issuance of long-term funding
|
500,000
|
|
|
1,265,000
|
|
||
Proceeds from issuance of common stock for stock-based compensation plans
|
20,945
|
|
|
4,276
|
|
||
Purchase of preferred stock
|
—
|
|
|
(1,248
|
)
|
||
Purchase of common stock returned to authorized but unissued
|
—
|
|
|
(20,007
|
)
|
||
Purchase of treasury stock for tax withholding
|
(8,445
|
)
|
|
(4,018
|
)
|
||
Cash dividends on common stock
|
(36,804
|
)
|
|
(33,034
|
)
|
||
Cash dividends on preferred stock
|
(4,669
|
)
|
|
(4,367
|
)
|
||
Net cash provided (used) by financing activities
|
511,194
|
|
|
1,138,910
|
|
||
Net increase (decrease) in cash and cash equivalents
|
(72,407
|
)
|
|
4,195
|
|
||
Cash and cash equivalents at beginning of period
|
642,233
|
|
|
473,685
|
|
||
Cash and cash equivalents at end of period
|
$
|
569,826
|
|
|
$
|
477,880
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
||||
Cash paid for interest
|
$
|
57,306
|
|
|
$
|
46,316
|
|
Cash paid for income taxes
|
27,461
|
|
|
27,852
|
|
||
Loans and bank premises transferred to other real estate owned
|
3,267
|
|
|
4,704
|
|
||
Capitalized mortgage servicing rights
|
3,278
|
|
|
4,149
|
|
||
Loans transferred into held for sale from portfolio, net
|
62,264
|
|
|
130,694
|
|
||
Acquisition:
|
|
|
|
||||
Fair value of assets acquired, including cash and cash equivalents
|
—
|
|
|
522
|
|
||
Fair value ascribed to goodwill and intangible assets
|
217
|
|
|
4,119
|
|
||
Fair value of liabilities assumed
|
—
|
|
|
1,423
|
|
Standard
|
|
Description
|
|
Date of adoption
|
|
Effect on financial statements
|
ASU 2017-08 Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities
|
|
The amendments of the new standard require that certain purchased callable debt securities held at a premium be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount, which continue to be amortized to maturity.
|
|
1st Quarter 2017
|
|
The Corporation early adopted with no material impact on results of operations, financial position, or liquidity.
|
ASU 2017-03 Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323)
|
|
The standard states that for ASUs which have not been adopted yet, the registrant needs to determine the potential effects (if material) of those ASUs on the financial statements when adopted and include the appropriate disclosures in the financial statements. If the impact of adoption is unknown or cannot be estimated, the registrant should include a statement noting this and consider adding qualitative disclosures to the financial statements to assist the reader in evaluating the impact of the ASUs, when adopted, on the financial statements.
|
|
1st Quarter 2017
|
|
No material impact on results of operations, financial position, or liquidity.
|
ASU 2016-17 Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control
|
|
The FASB issued an amendment to address how a reporting entity that is a single decision maker of a variable interest entity treats indirect interests in the entity held through related parties that are under common control with the reporting entity.
|
|
1st Quarter 2017
|
|
No material impact on results of operations, financial position, or liquidity.
|
ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting
|
|
The FASB issued an amendment involving several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Entities should apply the amendment related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Entities should apply the amendment related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement retrospectively. The amendment requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively.
|
|
4th Quarter 2016
|
|
The Corporation early adopted the accounting standard and recognized a $1 million reduction in income taxes for the excess tax benefits on stock-based compensation. The remaining provisions of this accounting standard did not have a material impact.
|
ASU 2016-07 Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting
|
|
The FASB issued an amendment to eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. Entities should apply the amendment prospectively to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method.
|
|
1st Quarter 2017
|
|
No material impact on results of operations, financial position, or liquidity.
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(In thousands, except per share data)
|
||||||||||||||
Net income
|
$
|
57,983
|
|
|
$
|
49,091
|
|
|
$
|
114,253
|
|
|
$
|
91,625
|
|
Preferred stock dividends
|
(2,339
|
)
|
|
(2,169
|
)
|
|
(4,669
|
)
|
|
(4,367
|
)
|
||||
Net income available to common equity
|
$
|
55,644
|
|
|
$
|
46,922
|
|
|
$
|
109,584
|
|
|
$
|
87,258
|
|
Common shareholder dividends
|
(18,326
|
)
|
|
(16,443
|
)
|
|
(36,577
|
)
|
|
(32,646
|
)
|
||||
Unvested share-based payment awards
|
(110
|
)
|
|
(182
|
)
|
|
(227
|
)
|
|
(388
|
)
|
||||
Undistributed earnings
|
$
|
37,208
|
|
|
$
|
30,297
|
|
|
$
|
72,780
|
|
|
$
|
54,224
|
|
Undistributed earnings allocated to common shareholders
|
36,980
|
|
|
29,963
|
|
|
72,273
|
|
|
53,649
|
|
||||
Undistributed earnings allocated to unvested share-based payment awards
|
228
|
|
|
334
|
|
|
507
|
|
|
575
|
|
||||
Undistributed earnings
|
$
|
37,208
|
|
|
$
|
30,297
|
|
|
$
|
72,780
|
|
|
$
|
54,224
|
|
Basic
|
|
|
|
|
|
|
|
||||||||
Distributed earnings to common shareholders
|
$
|
18,326
|
|
|
$
|
16,443
|
|
|
$
|
36,577
|
|
|
$
|
32,646
|
|
Undistributed earnings allocated to common shareholders
|
36,980
|
|
|
29,963
|
|
|
72,273
|
|
|
53,649
|
|
||||
Total common shareholders earnings, basic
|
$
|
55,306
|
|
|
$
|
46,406
|
|
|
$
|
108,850
|
|
|
$
|
86,295
|
|
Diluted
|
|
|
|
|
|
|
|
||||||||
Distributed earnings to common shareholders
|
$
|
18,326
|
|
|
$
|
16,443
|
|
|
$
|
36,577
|
|
|
$
|
32,646
|
|
Undistributed earnings allocated to common shareholders
|
36,980
|
|
|
29,963
|
|
|
72,273
|
|
|
53,649
|
|
||||
Total common shareholders earnings, diluted
|
$
|
55,306
|
|
|
$
|
46,406
|
|
|
$
|
108,850
|
|
|
$
|
86,295
|
|
Weighted average common shares outstanding
|
151,573
|
|
|
148,511
|
|
|
151,196
|
|
|
148,556
|
|
||||
Effect of dilutive common stock awards
|
1,958
|
|
|
1,019
|
|
|
2,155
|
|
|
962
|
|
||||
Effect of dilutive common stock warrants
|
771
|
|
|
—
|
|
|
796
|
|
|
—
|
|
||||
Diluted weighted average common shares outstanding
|
154,302
|
|
|
149,530
|
|
|
154,147
|
|
|
149,518
|
|
||||
Basic earnings per common share
|
$
|
0.36
|
|
|
$
|
0.31
|
|
|
$
|
0.72
|
|
|
$
|
0.58
|
|
Diluted earnings per common share
|
$
|
0.36
|
|
|
$
|
0.31
|
|
|
$
|
0.71
|
|
|
$
|
0.58
|
|
|
2017
|
|
2016
|
||
Dividend yield
|
2.00
|
%
|
|
2.50
|
%
|
Risk-free interest rate
|
2.00
|
%
|
|
2.00
|
%
|
Weighted average expected volatility
|
25.00
|
%
|
|
25.00
|
%
|
Weighted average expected life
|
5.5 years
|
|
|
5.5 years
|
|
Weighted average per share fair value of options
|
$5.30
|
|
$3.36
|
Stock Options
|
Shares
|
|
Weighted Average
Exercise Price
|
|
Weighted Average Remaining Contractual Term
|
|
Aggregate Intrinsic Value (000s)
|
|||||
Outstanding at December 31, 2016
|
6,357,843
|
|
|
$
|
17.67
|
|
|
6.10
|
|
$
|
47,902
|
|
Granted
|
799,558
|
|
|
$
|
25.61
|
|
|
|
|
|
||
Exercised
|
(1,217,640
|
)
|
|
16.27
|
|
|
|
|
|
|||
Forfeited or expired
|
(447,751
|
)
|
|
33.58
|
|
|
|
|
|
|||
Outstanding at June 30, 2017
|
5,492,010
|
|
|
$
|
18.10
|
|
|
6.80
|
|
$
|
39,339
|
|
Options Exercisable at June 30, 2017
|
3,120,596
|
|
|
$
|
16.53
|
|
|
5.47
|
|
$
|
27,075
|
|
Restricted Stock
|
Shares
|
|
Weighted Average
Grant Date Fair Value
|
|||
Outstanding at December 31, 2016
|
2,377,380
|
|
|
$
|
17.40
|
|
Granted
|
737,080
|
|
|
25.58
|
|
|
Vested
|
(851,381
|
)
|
|
17.88
|
|
|
Forfeited
|
(61,616
|
)
|
|
18.41
|
|
|
Outstanding at June 30, 2017
|
2,201,463
|
|
|
$
|
19.94
|
|
June 30, 2017
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|||||||||
|
($ in Thousands)
|
|||||||||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
|||||||||
U. S. Treasury securities
|
$
|
1,004
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
1,002
|
|
|
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
|||||||||
FNMA / FHLMC
|
534,058
|
|
|
13,873
|
|
|
(1,406
|
)
|
|
546,525
|
|
|||||
GNMA
|
1,729,386
|
|
|
1,894
|
|
|
(17,102
|
)
|
|
1,714,178
|
|
|||||
Private-label
|
1,102
|
|
|
—
|
|
|
(16
|
)
|
|
1,086
|
|
|||||
GNMA commercial mortgage-related securities
|
1,443,501
|
|
|
74
|
|
|
(23,703
|
)
|
|
1,419,872
|
|
|||||
Other securities (debt and equity)
|
4,718
|
|
|
116
|
|
|
(27
|
)
|
|
4,807
|
|
|||||
Total investment securities available for sale
|
$
|
3,713,769
|
|
|
$
|
15,957
|
|
|
$
|
(42,256
|
)
|
|
$
|
3,687,470
|
|
|
Investment securities held to maturity:
|
|
|
|
|
|
|
|
|||||||||
Obligations of state and political subdivisions (municipal securities)
|
$
|
1,162,920
|
|
|
$
|
13,766
|
|
|
$
|
(4,320
|
)
|
|
$
|
1,172,366
|
|
|
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
|||||||||
FNMA / FHLMC
|
43,575
|
|
|
430
|
|
|
(566
|
)
|
|
43,439
|
|
|||||
GNMA
|
473,517
|
|
|
4,048
|
|
|
(3,214
|
)
|
|
474,351
|
|
|||||
GNMA commercial mortgage-related securities
|
575,383
|
|
|
8,964
|
|
|
(11,181
|
)
|
|
573,166
|
|
|||||
Total investment securities held to maturity
|
$
|
2,255,395
|
|
|
$
|
27,208
|
|
|
$
|
(19,281
|
)
|
|
$
|
2,263,322
|
|
December 31, 2016
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
|||||||||
|
($ in Thousands)
|
|||||||||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
|||||||||
U. S. Treasury securities
|
$
|
1,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,000
|
|
|
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
|||||||||
FNMA / FHLMC
|
625,234
|
|
|
17,298
|
|
|
(2,602
|
)
|
|
639,930
|
|
|||||
GNMA
|
2,028,301
|
|
|
1,372
|
|
|
(25,198
|
)
|
|
2,004,475
|
|
|||||
Private-label
|
1,134
|
|
|
1
|
|
|
(14
|
)
|
|
1,121
|
|
|||||
GNMA commercial mortgage-related securities
|
2,064,508
|
|
|
356
|
|
|
(35,966
|
)
|
|
2,028,898
|
|
|||||
Other securities (debt and equity)
|
4,718
|
|
|
105
|
|
|
(21
|
)
|
|
4,802
|
|
|||||
Total investment securities available for sale
|
$
|
4,724,895
|
|
|
$
|
19,132
|
|
|
$
|
(63,801
|
)
|
|
$
|
4,680,226
|
|
|
Investment securities held to maturity:
|
|
|
|
|
|
|
|
|||||||||
Municipal securities
|
$
|
1,145,843
|
|
|
$
|
3,868
|
|
|
$
|
(12,036
|
)
|
|
$
|
1,137,675
|
|
|
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
|||||||||
FNMA / FHLMC
|
37,697
|
|
|
439
|
|
|
(693
|
)
|
|
37,443
|
|
|||||
GNMA
|
89,996
|
|
|
216
|
|
|
(656
|
)
|
|
89,556
|
|
|||||
Total investment securities held to maturity
|
$
|
1,273,536
|
|
|
$
|
4,523
|
|
|
$
|
(13,385
|
)
|
|
$
|
1,264,674
|
|
|
Available for Sale
|
|
Held to Maturity
|
||||||||||||
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
|
($ in Thousands)
|
||||||||||||||
Due in one year or less
|
$
|
1,500
|
|
|
$
|
1,506
|
|
|
$
|
41,085
|
|
|
$
|
33,447
|
|
Due after one year through five years
|
4,204
|
|
|
4,175
|
|
|
239,986
|
|
|
246,760
|
|
||||
Due after five years through ten years
|
—
|
|
|
—
|
|
|
261,149
|
|
|
265,255
|
|
||||
Due after ten years
|
—
|
|
|
—
|
|
|
620,700
|
|
|
626,904
|
|
||||
Total debt securities
|
5,704
|
|
|
5,681
|
|
|
1,162,920
|
|
|
1,172,366
|
|
||||
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
||||||||
FNMA / FHLMC
|
534,058
|
|
|
546,525
|
|
|
43,575
|
|
|
43,439
|
|
||||
GNMA
|
1,729,386
|
|
|
1,714,178
|
|
|
473,517
|
|
|
474,351
|
|
||||
Private-label
|
1,102
|
|
|
1,086
|
|
|
—
|
|
|
—
|
|
||||
GNMA commercial mortgage-related securities
|
1,443,501
|
|
|
1,419,872
|
|
|
575,383
|
|
|
573,166
|
|
||||
Equity securities
|
18
|
|
|
128
|
|
|
—
|
|
|
—
|
|
||||
Total investment securities
|
$
|
3,713,769
|
|
|
$
|
3,687,470
|
|
|
$
|
2,255,395
|
|
|
$
|
2,263,322
|
|
Ratio of Fair Value to Amortized Cost
|
|
|
99.3
|
%
|
|
|
|
100.4
|
%
|
|
Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
($ in Thousands)
|
||||||
Gross gains on available for sale securities
|
$
|
—
|
|
|
$
|
6,403
|
|
Gross gains on held to maturity securities
|
361
|
|
|
—
|
|
||
Total gains
|
361
|
|
|
6,403
|
|
||
Gross losses on available for sale securities
|
—
|
|
|
(189
|
)
|
||
Gross losses on held to maturity securities
|
$
|
(5
|
)
|
|
$
|
—
|
|
Total losses
|
$
|
(5
|
)
|
|
$
|
(189
|
)
|
Investment securities gains, net
|
$
|
356
|
|
|
$
|
6,214
|
|
Proceeds from sales of investment securities
|
$
|
16,059
|
|
|
$
|
359,484
|
|
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||||||||
June 30, 2017
|
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
|
)
|
|
$
|
1,002
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
1,002
|
|
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
FNMA / FHLMC
|
18
|
|
|
(1,406
|
)
|
|
223,326
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,406
|
)
|
|
223,326
|
|
||||||
GNMA
|
42
|
|
|
(16,220
|
)
|
|
1,186,468
|
|
|
1
|
|
|
(882
|
)
|
|
35,695
|
|
|
(17,102
|
)
|
|
1,222,163
|
|
||||||
Private-label
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(16
|
)
|
|
1,084
|
|
|
(16
|
)
|
|
1,084
|
|
||||||
GNMA commercial mortgage-related securities
|
54
|
|
|
(8,627
|
)
|
|
850,180
|
|
|
31
|
|
|
(15,076
|
)
|
|
496,698
|
|
|
(23,703
|
)
|
|
1,346,878
|
|
||||||
Other securities (debt and equity)
|
3
|
|
|
(27
|
)
|
|
2,173
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
2,173
|
|
||||||
Total
|
118
|
|
|
$
|
(26,282
|
)
|
|
$
|
2,263,149
|
|
|
33
|
|
|
$
|
(15,974
|
)
|
|
$
|
533,477
|
|
|
$
|
(42,256
|
)
|
|
$
|
2,796,626
|
|
Investment securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Municipal securities
|
301
|
|
|
$
|
(4,186
|
)
|
|
$
|
222,642
|
|
|
9
|
|
|
$
|
(134
|
)
|
|
$
|
4,814
|
|
|
$
|
(4,320
|
)
|
|
$
|
227,456
|
|
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
FNMA / FHLMC
|
18
|
|
|
(377
|
)
|
|
25,507
|
|
|
1
|
|
|
(189
|
)
|
|
5,657
|
|
|
(566
|
)
|
|
31,164
|
|
||||||
GNMA
|
45
|
|
|
(3,192
|
)
|
|
358,551
|
|
|
1
|
|
|
(22
|
)
|
|
1,246
|
|
|
(3,214
|
)
|
|
359,797
|
|
||||||
GNMA commercial mortgage-related securities
|
14
|
|
|
(3,683
|
)
|
|
301,594
|
|
|
10
|
|
|
(7,498
|
)
|
|
241,385
|
|
|
(11,181
|
)
|
|
542,979
|
|
||||||
Total
|
378
|
|
|
$
|
(11,438
|
)
|
|
$
|
908,294
|
|
|
21
|
|
|
$
|
(7,843
|
)
|
|
$
|
253,102
|
|
|
$
|
(19,281
|
)
|
|
$
|
1,161,396
|
|
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||||||||
December 31, 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
FNMA / FHLMC
|
14
|
|
|
$
|
(2,602
|
)
|
|
$
|
244,252
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,602
|
)
|
|
$
|
244,252
|
|
GNMA
|
54
|
|
|
(25,198
|
)
|
|
1,723,523
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,198
|
)
|
|
1,723,523
|
|
||||||
Private-label
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(14
|
)
|
|
1,119
|
|
|
(14
|
)
|
|
1,119
|
|
||||||
GNMA commercial mortgage-related securities
|
74
|
|
|
(16,445
|
)
|
|
1,427,889
|
|
|
21
|
|
|
(19,521
|
)
|
|
429,258
|
|
|
(35,966
|
)
|
|
1,857,147
|
|
||||||
Other securities (debt and equity)
|
3
|
|
|
(21
|
)
|
|
1,479
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21
|
)
|
|
1,479
|
|
||||||
Total
|
145
|
|
|
$
|
(44,266
|
)
|
|
$
|
3,397,143
|
|
|
22
|
|
|
$
|
(19,535
|
)
|
|
$
|
430,377
|
|
|
$
|
(63,801
|
)
|
|
$
|
3,827,520
|
|
Investment securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Municipal securities
|
700
|
|
|
$
|
(11,937
|
)
|
|
$
|
414,186
|
|
|
4
|
|
|
$
|
(99
|
)
|
|
$
|
1,752
|
|
|
$
|
(12,036
|
)
|
|
$
|
415,938
|
|
Residential mortgage-related securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
FNMA / FHLMC
|
14
|
|
|
(441
|
)
|
|
17,477
|
|
|
1
|
|
|
(252
|
)
|
|
6,031
|
|
|
(693
|
)
|
|
23,508
|
|
||||||
GNMA
|
39
|
|
|
(656
|
)
|
|
64,633
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(656
|
)
|
|
64,633
|
|
||||||
Total
|
753
|
|
|
$
|
(13,034
|
)
|
|
$
|
496,296
|
|
|
5
|
|
|
$
|
(351
|
)
|
|
$
|
7,783
|
|
|
$
|
(13,385
|
)
|
|
$
|
504,079
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
($ in Thousands)
|
||||||
Commercial and industrial
|
$
|
6,571,000
|
|
|
$
|
6,489,014
|
|
Commercial real estate — owner occupied
|
845,336
|
|
|
897,724
|
|
||
Commercial and business lending
|
7,416,336
|
|
|
7,386,738
|
|
||
Commercial real estate — investor
|
3,329,585
|
|
|
3,574,732
|
|
||
Real estate construction
|
1,651,805
|
|
|
1,432,497
|
|
||
Commercial real estate lending
|
4,981,390
|
|
|
5,007,229
|
|
||
Total commercial
|
12,397,726
|
|
|
12,393,967
|
|
||
Residential mortgage
|
7,115,457
|
|
|
6,332,327
|
|
||
Home equity
|
897,111
|
|
|
934,443
|
|
||
Other consumer
|
372,775
|
|
|
393,979
|
|
||
Total consumer
|
8,385,343
|
|
|
7,660,749
|
|
||
Total loans
|
$
|
20,783,069
|
|
|
$
|
20,054,716
|
|
|
Pass
|
|
Special Mention
|
|
Potential Problem
|
|
Nonaccrual
|
|
Total
|
||||||||||
|
($ in Thousands)
|
||||||||||||||||||
Commercial and industrial
|
$
|
6,183,037
|
|
|
$
|
103,881
|
|
|
$
|
142,607
|
|
|
$
|
141,475
|
|
|
$
|
6,571,000
|
|
Commercial real estate - owner occupied
|
754,446
|
|
|
14,366
|
|
|
60,724
|
|
|
15,800
|
|
|
845,336
|
|
|||||
Commercial and business lending
|
6,937,483
|
|
|
118,247
|
|
|
203,331
|
|
|
157,275
|
|
|
7,416,336
|
|
|||||
Commercial real estate - investor
|
3,260,187
|
|
|
13,623
|
|
|
48,569
|
|
|
7,206
|
|
|
3,329,585
|
|
|||||
Real estate construction
|
1,621,198
|
|
|
19,989
|
|
|
8,901
|
|
|
1,717
|
|
|
1,651,805
|
|
|||||
Commercial real estate lending
|
4,881,385
|
|
|
33,612
|
|
|
57,470
|
|
|
8,923
|
|
|
4,981,390
|
|
|||||
Total commercial
|
11,818,868
|
|
|
151,859
|
|
|
260,801
|
|
|
166,198
|
|
|
12,397,726
|
|
|||||
Residential mortgage
|
7,060,673
|
|
|
1,233
|
|
|
1,576
|
|
|
51,975
|
|
|
7,115,457
|
|
|||||
Home equity
|
882,253
|
|
|
1,168
|
|
|
208
|
|
|
13,482
|
|
|
897,111
|
|
|||||
Other consumer
|
372,018
|
|
|
524
|
|
|
—
|
|
|
233
|
|
|
372,775
|
|
|||||
Total consumer
|
8,314,944
|
|
|
2,925
|
|
|
1,784
|
|
|
65,690
|
|
|
8,385,343
|
|
|||||
Total
|
$
|
20,133,812
|
|
|
$
|
154,784
|
|
|
$
|
262,585
|
|
|
$
|
231,888
|
|
|
$
|
20,783,069
|
|
|
Pass
|
|
Special Mention
|
|
Potential Problem
|
|
Nonaccrual
|
|
Total
|
||||||||||
|
($ in Thousands)
|
||||||||||||||||||
Commercial and industrial
|
$
|
5,937,119
|
|
|
$
|
141,328
|
|
|
$
|
227,196
|
|
|
$
|
183,371
|
|
|
$
|
6,489,014
|
|
Commercial real estate - owner occupied
|
805,871
|
|
|
17,785
|
|
|
64,524
|
|
|
9,544
|
|
|
897,724
|
|
|||||
Commercial and business lending
|
6,742,990
|
|
|
159,113
|
|
|
291,720
|
|
|
192,915
|
|
|
7,386,738
|
|
|||||
Commercial real estate - investor
|
3,491,217
|
|
|
14,236
|
|
|
51,228
|
|
|
18,051
|
|
|
3,574,732
|
|
|||||
Real estate construction
|
1,429,083
|
|
|
105
|
|
|
2,465
|
|
|
844
|
|
|
1,432,497
|
|
|||||
Commercial real estate lending
|
4,920,300
|
|
|
14,341
|
|
|
53,693
|
|
|
18,895
|
|
|
5,007,229
|
|
|||||
Total commercial
|
11,663,290
|
|
|
173,454
|
|
|
345,413
|
|
|
211,810
|
|
|
12,393,967
|
|
|||||
Residential mortgage
|
6,275,162
|
|
|
1,314
|
|
|
5,615
|
|
|
50,236
|
|
|
6,332,327
|
|
|||||
Home equity
|
919,740
|
|
|
1,588
|
|
|
114
|
|
|
13,001
|
|
|
934,443
|
|
|||||
Other consumer
|
393,161
|
|
|
562
|
|
|
—
|
|
|
256
|
|
|
393,979
|
|
|||||
Total consumer
|
7,588,063
|
|
|
3,464
|
|
|
5,729
|
|
|
63,493
|
|
|
7,660,749
|
|
|||||
Total
|
$
|
19,251,353
|
|
|
$
|
176,918
|
|
|
$
|
351,142
|
|
|
$
|
275,303
|
|
|
$
|
20,054,716
|
|
|
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
|
$
|
6,428,022
|
|
|
$
|
1,042
|
|
|
$
|
213
|
|
|
$
|
248
|
|
|
$
|
141,475
|
|
|
$
|
6,571,000
|
|
Commercial real estate - owner occupied
|
828,252
|
|
|
1,136
|
|
|
148
|
|
|
—
|
|
|
15,800
|
|
|
845,336
|
|
||||||
Commercial and business lending
|
7,256,274
|
|
|
2,178
|
|
|
361
|
|
|
248
|
|
|
157,275
|
|
|
7,416,336
|
|
||||||
Commercial real estate - investor
|
3,321,480
|
|
|
899
|
|
|
—
|
|
|
—
|
|
|
7,206
|
|
|
3,329,585
|
|
||||||
Real estate construction
|
1,649,953
|
|
|
40
|
|
|
95
|
|
|
—
|
|
|
1,717
|
|
|
1,651,805
|
|
||||||
Commercial real estate lending
|
4,971,433
|
|
|
939
|
|
|
95
|
|
|
—
|
|
|
8,923
|
|
|
4,981,390
|
|
||||||
Total commercial
|
12,227,707
|
|
|
3,117
|
|
|
456
|
|
|
248
|
|
|
166,198
|
|
|
12,397,726
|
|
||||||
Residential mortgage
|
7,054,317
|
|
|
8,163
|
|
|
1,002
|
|
|
—
|
|
|
51,975
|
|
|
7,115,457
|
|
||||||
Home equity
|
877,705
|
|
|
4,755
|
|
|
1,169
|
|
|
—
|
|
|
13,482
|
|
|
897,111
|
|
||||||
Other consumer
|
369,509
|
|
|
1,113
|
|
|
633
|
|
|
1,287
|
|
|
233
|
|
|
372,775
|
|
||||||
Total consumer
|
8,301,531
|
|
|
14,031
|
|
|
2,804
|
|
|
1,287
|
|
|
65,690
|
|
|
8,385,343
|
|
||||||
Total
|
$
|
20,529,238
|
|
|
$
|
17,148
|
|
|
$
|
3,260
|
|
|
$
|
1,535
|
|
|
$
|
231,888
|
|
|
$
|
20,783,069
|
|
(a)
|
The recorded investment in loans past due 90 days or more and still accruing totaled
$2 million
at
June 30, 2017
(the same as the reported balances for the accruing loans noted above).
|
(b)
|
Of the total nonaccrual loans,
$180 million
or
78%
were current with respect to payment at
June 30, 2017
.
|
|
Current
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days or
More
Past Due
(a)
|
|
Nonaccrual
(b)
|
|
Total
|
||||||||||||
|
($ in Thousands)
|
||||||||||||||||||||||
Commercial and industrial
|
$
|
6,303,994
|
|
|
$
|
965
|
|
|
$
|
448
|
|
|
$
|
236
|
|
|
$
|
183,371
|
|
|
$
|
6,489,014
|
|
Commercial real estate - owner occupied
|
886,796
|
|
|
968
|
|
|
416
|
|
|
—
|
|
|
9,544
|
|
|
897,724
|
|
||||||
Commercial and business lending
|
7,190,790
|
|
|
1,933
|
|
|
864
|
|
|
236
|
|
|
192,915
|
|
|
7,386,738
|
|
||||||
Commercial real estate - investor
|
3,555,750
|
|
|
431
|
|
|
500
|
|
|
—
|
|
|
18,051
|
|
|
3,574,732
|
|
||||||
Real estate construction
|
1,431,284
|
|
|
264
|
|
|
105
|
|
|
—
|
|
|
844
|
|
|
1,432,497
|
|
||||||
Commercial real estate lending
|
4,987,034
|
|
|
695
|
|
|
605
|
|
|
—
|
|
|
18,895
|
|
|
5,007,229
|
|
||||||
Total commercial
|
12,177,824
|
|
|
2,628
|
|
|
1,469
|
|
|
236
|
|
|
211,810
|
|
|
12,393,967
|
|
||||||
Residential mortgage
|
6,273,949
|
|
|
7,298
|
|
|
844
|
|
|
—
|
|
|
50,236
|
|
|
6,332,327
|
|
||||||
Home equity
|
915,593
|
|
|
4,265
|
|
|
1,584
|
|
|
—
|
|
|
13,001
|
|
|
934,443
|
|
||||||
Other consumer
|
389,157
|
|
|
2,471
|
|
|
718
|
|
|
1,377
|
|
|
256
|
|
|
393,979
|
|
||||||
Total consumer
|
7,578,699
|
|
|
14,034
|
|
|
3,146
|
|
|
1,377
|
|
|
63,493
|
|
|
7,660,749
|
|
||||||
Total
|
$
|
19,756,523
|
|
|
$
|
16,662
|
|
|
$
|
4,615
|
|
|
$
|
1,613
|
|
|
$
|
275,303
|
|
|
$
|
20,054,716
|
|
(a)
|
The recorded investment in loans past due 90 days or more and still accruing totaled
$2 million
at
December 31, 2016
(the same as the reported balances for the accruing loans noted above).
|
(b)
|
Of the total nonaccrual loans,
$224 million
or
81%
were current with respect to payment at
December 31, 2016
.
|
|
Recorded
Investment |
|
Unpaid
Principal Balance |
|
Related
Allowance |
|
Average
Recorded Investment |
|
Interest
Income Recognized |
||||||||||
|
($ in Thousands)
|
||||||||||||||||||
Loans with a related allowance
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
89,563
|
|
|
$
|
94,231
|
|
|
$
|
17,882
|
|
|
$
|
95,205
|
|
|
$
|
635
|
|
Commercial real estate — owner occupied
|
7,249
|
|
|
9,154
|
|
|
526
|
|
|
6,086
|
|
|
93
|
|
|||||
Commercial and business lending
|
96,812
|
|
|
103,385
|
|
|
18,408
|
|
|
101,291
|
|
|
728
|
|
|||||
Commercial real estate — investor
|
15,832
|
|
|
16,111
|
|
|
330
|
|
|
15,782
|
|
|
767
|
|
|||||
Real estate construction
|
1,819
|
|
|
2,188
|
|
|
707
|
|
|
1,868
|
|
|
54
|
|
|||||
Commercial real estate lending
|
17,651
|
|
|
18,299
|
|
|
1,037
|
|
|
17,650
|
|
|
821
|
|
|||||
Total commercial
|
114,463
|
|
|
121,684
|
|
|
19,445
|
|
|
118,941
|
|
|
1,549
|
|
|||||
Residential mortgage
|
60,209
|
|
|
65,163
|
|
|
10,649
|
|
|
60,831
|
|
|
1,112
|
|
|||||
Home equity
|
20,927
|
|
|
22,907
|
|
|
9,665
|
|
|
21,232
|
|
|
484
|
|
|||||
Other consumer
|
1,315
|
|
|
1,342
|
|
|
229
|
|
|
1,335
|
|
|
12
|
|
|||||
Total consumer
|
82,451
|
|
|
89,412
|
|
|
20,543
|
|
|
83,398
|
|
|
1,608
|
|
|||||
Total loans
(a)
|
$
|
196,914
|
|
|
$
|
211,096
|
|
|
$
|
39,988
|
|
|
$
|
202,339
|
|
|
$
|
3,157
|
|
Loans with no related allowance
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
83,452
|
|
|
$
|
107,471
|
|
|
$
|
—
|
|
|
$
|
104,989
|
|
|
$
|
173
|
|
Commercial real estate — owner occupied
|
12,696
|
|
|
13,546
|
|
|
—
|
|
|
12,906
|
|
|
49
|
|
|||||
Commercial and business lending
|
96,148
|
|
|
121,017
|
|
|
—
|
|
|
117,895
|
|
|
222
|
|
|||||
Commercial real estate — investor
|
6,002
|
|
|
6,466
|
|
|
—
|
|
|
6,071
|
|
|
—
|
|
|||||
Real estate construction
|
219
|
|
|
222
|
|
|
—
|
|
|
222
|
|
|
—
|
|
|||||
Commercial real estate lending
|
6,221
|
|
|
6,688
|
|
|
—
|
|
|
6,293
|
|
|
—
|
|
|||||
Total commercial
|
102,369
|
|
|
127,705
|
|
|
—
|
|
|
124,188
|
|
|
222
|
|
|||||
Residential mortgage
|
9,390
|
|
|
10,246
|
|
|
—
|
|
|
9,461
|
|
|
101
|
|
|||||
Home equity
|
540
|
|
|
543
|
|
|
—
|
|
|
540
|
|
|
—
|
|
|||||
Other consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total consumer
|
9,930
|
|
|
10,789
|
|
|
—
|
|
|
10,001
|
|
|
101
|
|
|||||
Total loans
(a)
|
$
|
112,299
|
|
|
$
|
138,494
|
|
|
$
|
—
|
|
|
$
|
134,189
|
|
|
$
|
323
|
|
Total
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
173,015
|
|
|
$
|
201,702
|
|
|
$
|
17,882
|
|
|
$
|
200,194
|
|
|
$
|
808
|
|
Commercial real estate — owner occupied
|
19,945
|
|
|
22,700
|
|
|
526
|
|
|
18,992
|
|
|
142
|
|
|||||
Commercial and business lending
|
192,960
|
|
|
224,402
|
|
|
18,408
|
|
|
219,186
|
|
|
950
|
|
|||||
Commercial real estate — investor
|
21,834
|
|
|
22,577
|
|
|
330
|
|
|
21,853
|
|
|
767
|
|
|||||
Real estate construction
|
2,038
|
|
|
2,410
|
|
|
707
|
|
|
2,090
|
|
|
54
|
|
|||||
Commercial real estate lending
|
23,872
|
|
|
24,987
|
|
|
1,037
|
|
|
23,943
|
|
|
821
|
|
|||||
Total commercial
|
216,832
|
|
|
249,389
|
|
|
19,445
|
|
|
243,129
|
|
|
1,771
|
|
|||||
Residential mortgage
|
69,599
|
|
|
75,409
|
|
|
10,649
|
|
|
70,292
|
|
|
1,213
|
|
|||||
Home equity
|
21,467
|
|
|
23,450
|
|
|
9,665
|
|
|
21,772
|
|
|
484
|
|
|||||
Other consumer
|
1,315
|
|
|
1,342
|
|
|
229
|
|
|
1,335
|
|
|
12
|
|
|||||
Total consumer
|
92,381
|
|
|
100,201
|
|
|
20,543
|
|
|
93,399
|
|
|
1,709
|
|
|||||
Total loans
(a)
|
$
|
309,213
|
|
|
$
|
349,590
|
|
|
$
|
39,988
|
|
|
$
|
336,528
|
|
|
$
|
3,480
|
|
(a)
|
The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented
77%
of the unpaid principal balance at
June 30, 2017
.
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
|
($ in Thousands)
|
||||||||||||||||||
Loans with a related allowance
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
101,770
|
|
|
$
|
107,813
|
|
|
$
|
21,617
|
|
|
$
|
111,211
|
|
|
$
|
2,512
|
|
Commercial real estate — owner occupied
|
6,595
|
|
|
8,641
|
|
|
295
|
|
|
7,111
|
|
|
274
|
|
|||||
Commercial and business lending
|
108,365
|
|
|
116,454
|
|
|
21,912
|
|
|
118,322
|
|
|
2,786
|
|
|||||
Commercial real estate — investor
|
27,196
|
|
|
27,677
|
|
|
3,541
|
|
|
31,142
|
|
|
2,124
|
|
|||||
Real estate construction
|
1,203
|
|
|
1,566
|
|
|
441
|
|
|
1,321
|
|
|
67
|
|
|||||
Commercial real estate lending
|
28,399
|
|
|
29,243
|
|
|
3,982
|
|
|
32,463
|
|
|
2,191
|
|
|||||
Total commercial
|
136,764
|
|
|
145,697
|
|
|
25,894
|
|
|
150,785
|
|
|
4,977
|
|
|||||
Residential mortgage
|
62,362
|
|
|
67,090
|
|
|
11,091
|
|
|
63,825
|
|
|
2,263
|
|
|||||
Home equity
|
20,651
|
|
|
22,805
|
|
|
9,312
|
|
|
21,825
|
|
|
1,114
|
|
|||||
Other consumer
|
1,235
|
|
|
1,284
|
|
|
186
|
|
|
1,294
|
|
|
29
|
|
|||||
Total consumer
|
84,248
|
|
|
91,179
|
|
|
20,589
|
|
|
86,944
|
|
|
3,406
|
|
|||||
Total loans
(a)
|
$
|
221,012
|
|
|
$
|
236,876
|
|
|
$
|
46,483
|
|
|
$
|
237,729
|
|
|
$
|
8,383
|
|
Loans with no related allowance
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
113,485
|
|
|
$
|
134,863
|
|
|
$
|
—
|
|
|
$
|
117,980
|
|
|
$
|
1,519
|
|
Commercial real estate — owner occupied
|
8,439
|
|
|
9,266
|
|
|
—
|
|
|
8,759
|
|
|
138
|
|
|||||
Commercial and business lending
|
121,924
|
|
|
144,129
|
|
|
—
|
|
|
126,739
|
|
|
1,657
|
|
|||||
Commercial real estate — investor
|
6,144
|
|
|
6,478
|
|
|
—
|
|
|
7,092
|
|
|
—
|
|
|||||
Real estate construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial real estate lending
|
6,144
|
|
|
6,478
|
|
|
—
|
|
|
7,092
|
|
|
—
|
|
|||||
Total commercial
|
128,068
|
|
|
150,607
|
|
|
—
|
|
|
133,831
|
|
|
1,657
|
|
|||||
Residential mortgage
|
5,974
|
|
|
6,998
|
|
|
—
|
|
|
6,610
|
|
|
184
|
|
|||||
Home equity
|
106
|
|
|
107
|
|
|
—
|
|
|
107
|
|
|
4
|
|
|||||
Other consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total consumer
|
6,080
|
|
|
7,105
|
|
|
—
|
|
|
6,717
|
|
|
188
|
|
|||||
Total loans
(a)
|
$
|
134,148
|
|
|
$
|
157,712
|
|
|
$
|
—
|
|
|
$
|
140,548
|
|
|
$
|
1,845
|
|
Total
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
215,255
|
|
|
$
|
242,676
|
|
|
$
|
21,617
|
|
|
$
|
229,191
|
|
|
$
|
4,031
|
|
Commercial real estate — owner occupied
|
15,034
|
|
|
17,907
|
|
|
295
|
|
|
15,870
|
|
|
412
|
|
|||||
Commercial and business lending
|
230,289
|
|
|
260,583
|
|
|
21,912
|
|
|
245,061
|
|
|
4,443
|
|
|||||
Commercial real estate — investor
|
33,340
|
|
|
34,155
|
|
|
3,541
|
|
|
38,234
|
|
|
2,124
|
|
|||||
Real estate construction
|
1,203
|
|
|
1,566
|
|
|
441
|
|
|
1,321
|
|
|
67
|
|
|||||
Commercial real estate lending
|
34,543
|
|
|
35,721
|
|
|
3,982
|
|
|
39,555
|
|
|
2,191
|
|
|||||
Total commercial
|
264,832
|
|
|
296,304
|
|
|
25,894
|
|
|
284,616
|
|
|
6,634
|
|
|||||
Residential mortgage
|
68,336
|
|
|
74,088
|
|
|
11,091
|
|
|
70,435
|
|
|
2,447
|
|
|||||
Home equity
|
20,757
|
|
|
22,912
|
|
|
9,312
|
|
|
21,932
|
|
|
1,118
|
|
|||||
Other consumer
|
1,235
|
|
|
1,284
|
|
|
186
|
|
|
1,294
|
|
|
29
|
|
|||||
Total consumer
|
90,328
|
|
|
98,284
|
|
|
20,589
|
|
|
93,661
|
|
|
3,594
|
|
|||||
Total loans
(a)
|
$
|
355,160
|
|
|
$
|
394,588
|
|
|
$
|
46,483
|
|
|
$
|
378,277
|
|
|
$
|
10,228
|
|
(a)
|
The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented
78%
of the unpaid principal balance at
December 31, 2016
.
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
Performing
Restructured
Loans
|
|
Nonaccrual
Restructured
Loans
(a)
|
|
Performing
Restructured
Loans
|
|
Nonaccrual
Restructured
Loans
(a)
|
||||||||
|
($ in Thousands)
|
||||||||||||||
Commercial and industrial
|
$
|
31,540
|
|
|
$
|
27,016
|
|
|
$
|
31,884
|
|
|
$
|
1,276
|
|
Commercial real estate — owner occupied
|
4,145
|
|
|
2,145
|
|
|
5,490
|
|
|
2,220
|
|
||||
Commercial real estate — investor
|
14,628
|
|
|
602
|
|
|
15,289
|
|
|
924
|
|
||||
Real estate construction
|
321
|
|
|
164
|
|
|
359
|
|
|
150
|
|
||||
Residential mortgage
|
17,624
|
|
|
19,365
|
|
|
18,100
|
|
|
21,906
|
|
||||
Home equity
|
7,985
|
|
|
2,401
|
|
|
7,756
|
|
|
2,877
|
|
||||
Other consumer
|
1,082
|
|
|
22
|
|
|
979
|
|
|
32
|
|
||||
Total
|
$
|
77,325
|
|
|
$
|
51,715
|
|
|
$
|
79,857
|
|
|
$
|
29,385
|
|
(a)
|
Nonaccrual restructured loans have been included within nonaccrual loans.
|
|
Six Months Ended June 30, 2017
|
|
Six Months Ended June 30, 2016
|
||||||||||||||||||
|
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
|
24
|
|
|
$
|
30,935
|
|
|
$
|
52,260
|
|
|
11
|
|
|
$
|
2,608
|
|
|
$
|
2,676
|
|
Commercial real estate — owner occupied
|
2
|
|
|
716
|
|
|
716
|
|
|
1
|
|
|
120
|
|
|
126
|
|
||||
Residential mortgage
|
36
|
|
|
2,695
|
|
|
2,805
|
|
|
48
|
|
|
3,942
|
|
|
4,171
|
|
||||
Home equity
|
26
|
|
|
674
|
|
|
919
|
|
|
37
|
|
|
1,433
|
|
|
1,554
|
|
||||
Total
|
88
|
|
|
$
|
35,020
|
|
|
$
|
56,700
|
|
|
97
|
|
|
$
|
8,103
|
|
|
$
|
8,527
|
|
(a)
|
Represents post-modification outstanding recorded investment.
|
(b)
|
Represents pre-modification outstanding recorded investment.
|
|
Six Months Ended June 30, 2017
|
|
Six Months Ended June 30, 2016
|
||||||||||
|
Number of
Loans
|
|
Recorded
Investment
|
|
Number of
Loans
|
|
Recorded
Investment
|
||||||
|
($ in Thousands)
|
||||||||||||
Commercial real estate — owner occupied
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
168
|
|
Residential mortgage
|
17
|
|
|
941
|
|
|
25
|
|
|
2,407
|
|
||
Home equity
|
9
|
|
|
271
|
|
|
11
|
|
|
164
|
|
||
Total
|
26
|
|
|
$
|
1,212
|
|
|
38
|
|
|
$
|
2,739
|
|
$ 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, 2016
|
$
|
140,126
|
|
|
$
|
14,034
|
|
|
$
|
45,285
|
|
|
$
|
26,932
|
|
|
$
|
27,046
|
|
|
$
|
20,364
|
|
|
$
|
4,548
|
|
|
$
|
278,335
|
|
Charge offs
|
(21,912
|
)
|
|
(83
|
)
|
|
(803
|
)
|
|
(62
|
)
|
|
(1,034
|
)
|
|
(1,196
|
)
|
|
(2,140
|
)
|
|
(27,230
|
)
|
||||||||
Recoveries
|
6,498
|
|
|
145
|
|
|
163
|
|
|
47
|
|
|
342
|
|
|
1,423
|
|
|
378
|
|
|
8,996
|
|
||||||||
Net charge offs
|
(15,414
|
)
|
|
62
|
|
|
(640
|
)
|
|
(15
|
)
|
|
(692
|
)
|
|
227
|
|
|
(1,762
|
)
|
|
(18,234
|
)
|
||||||||
Provision for loan losses
|
18,295
|
|
|
(5,551
|
)
|
|
(3,155
|
)
|
|
4,571
|
|
|
5,212
|
|
|
(351
|
)
|
|
1,979
|
|
|
21,000
|
|
||||||||
June 30, 2017
|
$
|
143,007
|
|
|
$
|
8,545
|
|
|
$
|
41,490
|
|
|
$
|
31,488
|
|
|
$
|
31,566
|
|
|
$
|
20,240
|
|
|
$
|
4,765
|
|
|
$
|
281,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated
|
$
|
17,350
|
|
|
$
|
187
|
|
|
$
|
183
|
|
|
$
|
—
|
|
|
$
|
106
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,826
|
|
Collectively evaluated
|
532
|
|
|
339
|
|
|
147
|
|
|
707
|
|
|
10,543
|
|
|
9,665
|
|
|
229
|
|
|
22,162
|
|
||||||||
Total impaired loans
|
17,882
|
|
|
526
|
|
|
330
|
|
|
707
|
|
|
10,649
|
|
|
9,665
|
|
|
229
|
|
|
39,988
|
|
||||||||
Non-impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Collectively evaluated
|
125,125
|
|
|
8,019
|
|
|
41,160
|
|
|
30,781
|
|
|
20,917
|
|
|
10,575
|
|
|
4,536
|
|
|
241,113
|
|
||||||||
Total
|
$
|
143,007
|
|
|
$
|
8,545
|
|
|
$
|
41,490
|
|
|
$
|
31,488
|
|
|
$
|
31,566
|
|
|
$
|
20,240
|
|
|
$
|
4,765
|
|
|
$
|
281,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Period end loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated
|
$
|
140,061
|
|
|
$
|
15,303
|
|
|
$
|
6,799
|
|
|
$
|
220
|
|
|
$
|
11,060
|
|
|
$
|
643
|
|
|
$
|
—
|
|
|
$
|
174,086
|
|
Collectively evaluated
|
32,954
|
|
|
4,642
|
|
|
15,035
|
|
|
1,818
|
|
|
58,539
|
|
|
20,824
|
|
|
1,315
|
|
|
135,127
|
|
||||||||
Total impaired loans
|
173,015
|
|
|
19,945
|
|
|
21,834
|
|
|
2,038
|
|
|
69,599
|
|
|
21,467
|
|
|
1,315
|
|
|
309,213
|
|
||||||||
Non-impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Collectively evaluated
|
6,397,985
|
|
|
825,391
|
|
|
3,307,751
|
|
|
1,649,767
|
|
|
7,045,858
|
|
|
875,644
|
|
|
371,460
|
|
|
20,473,856
|
|
||||||||
Total
|
$
|
6,571,000
|
|
|
$
|
845,336
|
|
|
$
|
3,329,585
|
|
|
$
|
1,651,805
|
|
|
$
|
7,115,457
|
|
|
$
|
897,111
|
|
|
$
|
372,775
|
|
|
$
|
20,783,069
|
|
$ 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
|
(71,016
|
)
|
|
(512
|
)
|
|
(1,504
|
)
|
|
(558
|
)
|
|
(4,332
|
)
|
|
(4,686
|
)
|
|
(3,831
|
)
|
|
(86,439
|
)
|
||||||||
Recoveries
|
14,543
|
|
|
74
|
|
|
1,624
|
|
|
203
|
|
|
755
|
|
|
3,491
|
|
|
820
|
|
|
21,510
|
|
||||||||
Net charge offs
|
(56,473
|
)
|
|
(438
|
)
|
|
120
|
|
|
(355
|
)
|
|
(3,577
|
)
|
|
(1,195
|
)
|
|
(3,011
|
)
|
|
(64,929
|
)
|
||||||||
Provision for loan losses
|
66,640
|
|
|
(4,208
|
)
|
|
2,147
|
|
|
2,021
|
|
|
2,362
|
|
|
(1,996
|
)
|
|
2,034
|
|
|
69,000
|
|
||||||||
December 31, 2016
|
$
|
140,126
|
|
|
$
|
14,034
|
|
|
$
|
45,285
|
|
|
$
|
26,932
|
|
|
$
|
27,046
|
|
|
$
|
20,364
|
|
|
$
|
4,548
|
|
|
$
|
278,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated
|
$
|
20,836
|
|
|
$
|
—
|
|
|
$
|
3,117
|
|
|
$
|
—
|
|
|
$
|
147
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
24,103
|
|
Collectively evaluated
|
781
|
|
|
295
|
|
|
424
|
|
|
441
|
|
|
10,944
|
|
|
9,309
|
|
|
186
|
|
|
22,380
|
|
||||||||
Total impaired loans
|
21,617
|
|
|
295
|
|
|
3,541
|
|
|
441
|
|
|
11,091
|
|
|
9,312
|
|
|
186
|
|
|
46,483
|
|
||||||||
Non-impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Collectively evaluated
|
118,509
|
|
|
13,739
|
|
|
41,744
|
|
|
26,491
|
|
|
15,955
|
|
|
11,052
|
|
|
4,362
|
|
|
231,852
|
|
||||||||
Total
|
$
|
140,126
|
|
|
$
|
14,034
|
|
|
$
|
45,285
|
|
|
$
|
26,932
|
|
|
$
|
27,046
|
|
|
$
|
20,364
|
|
|
$
|
4,548
|
|
|
$
|
278,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Period end loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated
|
$
|
180,965
|
|
|
$
|
8,439
|
|
|
$
|
17,322
|
|
|
$
|
—
|
|
|
$
|
7,033
|
|
|
$
|
650
|
|
|
$
|
—
|
|
|
$
|
214,409
|
|
Collectively evaluated
|
34,290
|
|
|
6,595
|
|
|
16,018
|
|
|
1,203
|
|
|
61,303
|
|
|
20,107
|
|
|
1,235
|
|
|
140,751
|
|
||||||||
Total impaired loans
|
215,255
|
|
|
15,034
|
|
|
33,340
|
|
|
1,203
|
|
|
68,336
|
|
|
20,757
|
|
|
1,235
|
|
|
355,160
|
|
||||||||
Non-impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Collectively evaluated
|
6,273,759
|
|
|
882,690
|
|
|
3,541,392
|
|
|
1,431,294
|
|
|
6,263,991
|
|
|
913,686
|
|
|
392,744
|
|
|
19,699,556
|
|
||||||||
Total
|
$
|
6,489,014
|
|
|
$
|
897,724
|
|
|
$
|
3,574,732
|
|
|
$
|
1,432,497
|
|
|
$
|
6,332,327
|
|
|
$
|
934,443
|
|
|
$
|
393,979
|
|
|
$
|
20,054,716
|
|
|
Six Months Ended June 30, 2017
|
|
Year Ended December 31, 2016
|
||||
|
($ in Thousands)
|
||||||
Allowance for Unfunded Commitments:
|
|
|
|
||||
Balance at beginning of period
|
$
|
25,400
|
|
|
$
|
24,400
|
|
Provision for unfunded commitments
|
—
|
|
|
1,000
|
|
||
Balance at end of period
|
$
|
25,400
|
|
|
$
|
25,400
|
|
|
Six Months Ended June 30, 2017
|
|
Year Ended December 31, 2016
|
||||
|
($ in Thousands)
|
||||||
Core deposit intangibles:
|
|
|
|
||||
Gross carrying amount
|
$
|
4,385
|
|
|
$
|
4,385
|
|
Accumulated amortization
|
(4,385
|
)
|
|
(4,273
|
)
|
||
Net book value
|
$
|
—
|
|
|
$
|
112
|
|
Amortization during the year
|
$
|
112
|
|
|
$
|
281
|
|
Other intangibles:
|
|
|
|
||||
Gross carrying amount
|
$
|
32,572
|
|
|
$
|
32,410
|
|
Accumulated amortization
|
(18,042
|
)
|
|
(17,145
|
)
|
||
Net book value
|
$
|
14,530
|
|
|
$
|
15,265
|
|
Additions during the period
|
$
|
162
|
|
|
$
|
1,012
|
|
Amortization during the year
|
$
|
897
|
|
|
$
|
1,812
|
|
|
Six Months Ended June 30, 2017
|
|
Year Ended December 31, 2016
|
||||
|
($ in Thousands)
|
||||||
Mortgage servicing rights
|
|||||||
Mortgage servicing rights at beginning of period
|
$
|
62,085
|
|
|
$
|
62,150
|
|
Additions
|
3,278
|
|
|
12,262
|
|
||
Amortization
|
(5,084
|
)
|
|
(12,327
|
)
|
||
Mortgage servicing rights at end of period
|
$
|
60,279
|
|
|
$
|
62,085
|
|
Valuation allowance at beginning of period
|
(609
|
)
|
|
(809
|
)
|
||
(Additions) recoveries, net
|
(275
|
)
|
|
200
|
|
||
Valuation allowance at end of period
|
(884
|
)
|
|
(609
|
)
|
||
Mortgage servicing rights, net
|
$
|
59,395
|
|
|
$
|
61,476
|
|
Fair value of mortgage servicing rights
|
$
|
64,627
|
|
|
$
|
73,149
|
|
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”)
|
$
|
7,768,374
|
|
|
$
|
7,974,742
|
|
Mortgage servicing rights, net to servicing portfolio
|
0.76
|
%
|
|
0.77
|
%
|
||
Mortgage servicing rights expense
(a)
|
$
|
5,359
|
|
|
$
|
12,127
|
|
(a)
|
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
|
Other Intangibles
|
|
Mortgage Servicing Rights
|
||||
|
($ in Thousands)
|
||||||
Six months ending December 31, 2017
|
$
|
901
|
|
|
$
|
5,046
|
|
2018
|
1,771
|
|
|
8,897
|
|
||
2019
|
1,472
|
|
|
7,476
|
|
||
2020
|
1,355
|
|
|
6,292
|
|
||
2021
|
1,331
|
|
|
5,315
|
|
||
2022
|
1,308
|
|
|
4,515
|
|
||
Beyond 2022
|
6,392
|
|
|
22,738
|
|
||
Total Estimated Amortization Expense
|
$
|
14,530
|
|
|
$
|
60,279
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
|
($ in Thousands)
|
||||||
Short-Term Funding
|
|
|
|
||||
Federal funds purchased
|
$
|
345,350
|
|
|
$
|
208,150
|
|
Securities sold under agreements to repurchase
|
262,319
|
|
|
300,197
|
|
||
Federal funds purchased and securities sold under agreements to repurchase
|
$
|
607,669
|
|
|
$
|
508,347
|
|
FHLB advances
|
697,000
|
|
|
482,000
|
|
||
Commercial paper
|
97,813
|
|
|
101,688
|
|
||
Other short-term funding
|
794,813
|
|
|
583,688
|
|
||
Total short-term funding
|
$
|
1,402,482
|
|
|
$
|
1,092,035
|
|
Long-Term Funding
|
|
|
|
||||
FHLB advances
|
$
|
2,765,176
|
|
|
$
|
2,265,188
|
|
Senior notes, at par
|
250,000
|
|
|
250,000
|
|
||
Subordinated notes, at par
|
250,000
|
|
|
250,000
|
|
||
Other long-term funding and capitalized costs
|
(3,056
|
)
|
|
(3,393
|
)
|
||
Total long-term funding
|
3,262,120
|
|
|
2,761,795
|
|
||
Total short and long-term funding
|
$
|
4,664,602
|
|
|
$
|
3,853,830
|
|
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||
|
Overnight and Continuous
|
Up to 30 days
|
30-90 days
|
Greater than 90 days
|
Total
|
||||||||||
June 30, 2017
|
|
|
($ in Thousands)
|
|
|
||||||||||
Repurchase agreements
|
|
|
|
|
|
||||||||||
Agency mortgage-related securities
|
$
|
262,319
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
262,319
|
|
Total
|
$
|
262,319
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
262,319
|
|
December 31, 2016
|
|
|
|
|
|
||||||||||
Repurchase agreements
|
|
|
|
|
|
||||||||||
Agency mortgage-related securities
|
$
|
300,197
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
300,197
|
|
Total
|
$
|
300,197
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
300,197
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||
($ in Thousands)
|
Notional Amount
|
|
Fair
Value
|
|
Balance Sheet
Category
|
|
Notional Amount
|
|
Fair
Value |
|
Balance Sheet
Category |
||||||||
Interest rate-related instruments — customer and mirror
|
$
|
2,118,409
|
|
|
$
|
28,105
|
|
|
Trading assets
|
|
$
|
2,039,323
|
|
|
$
|
33,671
|
|
|
Trading assets
|
Interest rate-related instruments — customer and mirror
|
2,118,409
|
|
|
(27,691
|
)
|
|
Trading liabilities
|
|
2,039,323
|
|
|
(33,188
|
)
|
|
Trading liabilities
|
||||
Foreign currency exchange forwards
|
93,300
|
|
|
1,480
|
|
|
Trading assets
|
|
109,675
|
|
|
2,002
|
|
|
Trading assets
|
||||
Foreign currency exchange forwards
|
92,969
|
|
|
(1,412
|
)
|
|
Trading liabilities
|
|
106,251
|
|
|
(1,943
|
)
|
|
Trading liabilities
|
||||
Commodity contracts
|
304,554
|
|
|
18,991
|
|
|
Trading assets
|
|
127,582
|
|
|
16,725
|
|
|
Trading assets
|
||||
Commodity contracts
|
303,790
|
|
|
(18,040
|
)
|
|
Trading liabilities
|
|
128,368
|
|
|
(15,972
|
)
|
|
Trading liabilities
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||
($ in Thousands)
|
Notional Amount
|
|
Fair
Value |
|
|
Balance Sheet
Category |
|
Notional Amount
|
|
Fair
Value |
|
|
Balance Sheet
Category |
||
Interest rate lock commitments (mortgage)
|
356,798
|
|
|
2,680
|
|
|
Other assets
|
|
285,345
|
|
|
206
|
|
|
Other assets
|
Forward commitments (mortgage)
|
151,500
|
|
|
159
|
|
|
Other assets
|
|
179,600
|
|
|
2,908
|
|
|
Other assets
|
Purchased options (time deposit)
|
75,899
|
|
|
1,531
|
|
|
Other assets
|
|
80,554
|
|
|
2,576
|
|
|
Other assets
|
Written options (time deposit)
|
75,899
|
|
|
(1,531
|
)
|
|
Other liabilities
|
|
80,554
|
|
|
(2,576
|
)
|
|
Other liabilities
|
|
Income Statement Category of
Gain / (Loss) Recognized in Income
|
For the Six Months Ended June 30,
|
||||||
($ in Thousands)
|
|
2017
|
|
2016
|
||||
Derivative Instruments:
|
|
|
|
|
||||
Interest rate-related instruments — customer and mirror, net
|
Capital market fees, net
|
$
|
(69
|
)
|
|
$
|
(1,426
|
)
|
Interest rate lock commitments (mortgage)
|
Mortgage banking, net
|
2,474
|
|
|
3,312
|
|
||
Forward commitments (mortgage)
|
Mortgage banking, net
|
(2,749
|
)
|
|
(4,608
|
)
|
||
Foreign currency exchange forwards
|
Capital market fees, net
|
9
|
|
|
(48
|
)
|
||
Commodity contracts
|
Capital market fees, net
|
198
|
|
|
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, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest and commodity agreements
|
$
|
24,322
|
|
|
$
|
—
|
|
|
$
|
24,322
|
|
|
$
|
(16,517
|
)
|
|
$
|
(7,805
|
)
|
|
$
|
—
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest and commodity agreements
|
$
|
16,517
|
|
|
$
|
—
|
|
|
$
|
16,517
|
|
|
$
|
(16,517
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest and commodity agreements
|
$
|
18,031
|
|
|
$
|
—
|
|
|
$
|
18,031
|
|
|
$
|
(18,031
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest and commodity agreements
|
$
|
31,075
|
|
|
$
|
—
|
|
|
$
|
31,075
|
|
|
$
|
(18,031
|
)
|
|
$
|
(11,148
|
)
|
|
$
|
1,896
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
|
($ in Thousands)
|
||||||
Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale
(a)(b)
|
$
|
8,063,899
|
|
|
$
|
8,131,131
|
|
Commercial letters of credit
(a)
|
5,839
|
|
|
7,923
|
|
||
Standby letters of credit
(c)
|
242,144
|
|
|
259,632
|
|
(a)
|
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, 2017
or
December 31, 2016
.
|
(b)
|
Interest rate lock commitments to originate residential mortgage loans held for sale are considered derivative instruments and are disclosed in Note
10
.
|
(c)
|
The Corporation has established a liability of
$2 million
at
June 30, 2017
and
$3 million
at
December 31, 2016
, as an estimate of the fair value of these financial instruments.
|
|
Six Months Ended June 30, 2017
|
|
Year Ended December 31, 2016
|
||||
|
($ in Thousands)
|
||||||
Balance at beginning of period
|
$
|
900
|
|
|
$
|
1,197
|
|
Repurchase provision expense
|
109
|
|
|
456
|
|
||
Adjustments to provision expense
|
—
|
|
|
(750
|
)
|
||
Charge offs, net
|
(18
|
)
|
|
(3
|
)
|
||
Balance at end of period
|
$
|
991
|
|
|
$
|
900
|
|
|
Fair Value Hierarchy
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
|
|
|
($ in Thousands)
|
||||||
Assets:
|
|
|
|
|
|
||||
Investment securities available for sale:
|
|
|
|
|
|
||||
U.S. Treasury securities
|
Level 1
|
|
$
|
1,002
|
|
|
$
|
1,000
|
|
Residential mortgage-related securities:
|
|
|
|
|
|
||||
FNMA / FHLMC
|
Level 2
|
|
546,525
|
|
|
639,930
|
|
||
GNMA
|
Level 2
|
|
1,714,178
|
|
|
2,004,475
|
|
||
Private-label
|
Level 2
|
|
1,086
|
|
|
1,121
|
|
||
GNMA commercial mortgage-related securities
|
Level 2
|
|
1,419,872
|
|
|
2,028,898
|
|
||
Other securities (debt and equity)
|
Level 1
|
|
1,634
|
|
|
1,602
|
|
||
Other securities (debt and equity)
|
Level 2
|
|
3,173
|
|
|
3,000
|
|
||
Other securities (debt and equity)
|
Level 3
|
|
—
|
|
|
200
|
|
||
Total investment securities available for sale
|
Level 1
|
|
2,636
|
|
|
2,602
|
|
||
Total investment securities available for sale
|
Level 2
|
|
3,684,834
|
|
|
4,677,424
|
|
||
Total investment securities available for sale
|
Level 3
|
|
—
|
|
|
200
|
|
||
Residential loans held for sale
(a)
|
Level 2
|
|
41,620
|
|
|
—
|
|
||
Interest rate-related instruments
|
Level 2
|
|
28,105
|
|
|
33,671
|
|
||
Foreign currency exchange forwards
|
Level 2
|
|
1,480
|
|
|
2,002
|
|
||
Interest rate lock commitments to originate residential mortgage loans held for sale
|
Level 3
|
|
2,680
|
|
|
206
|
|
||
Forward commitments to sell residential mortgage loans
|
Level 3
|
|
159
|
|
|
2,908
|
|
||
Commodity contracts
|
Level 2
|
|
18,991
|
|
|
16,725
|
|
||
Purchased options (time deposit)
|
Level 2
|
|
1,531
|
|
|
2,576
|
|
||
Liabilities:
|
|
|
|
|
|
||||
Interest rate-related instruments
|
Level 2
|
|
$
|
27,691
|
|
|
$
|
33,188
|
|
Foreign currency exchange forwards
|
Level 2
|
|
1,412
|
|
|
1,943
|
|
||
Commodity contracts
|
Level 2
|
|
18,040
|
|
|
15,972
|
|
||
Written options (time deposit)
|
Level 2
|
|
1,531
|
|
|
2,576
|
|
(a)
|
Effective January 1, 2017, residential loans originated for sale are accounted for under the fair value option. Prior periods have not been restated. For more information on this accounting policy change, please refer to Note 3.
|
|
Investment Securities
Available for Sale
|
|
Derivative Financial
Instruments
|
||||
|
($ in Thousands)
|
||||||
Balance December 31, 2015
|
$
|
200
|
|
|
$
|
1,361
|
|
Total net gains included in income:
|
|
|
|
||||
Mortgage derivative gain
|
—
|
|
|
1,753
|
|
||
Balance December 31, 2016
|
$
|
200
|
|
|
$
|
3,114
|
|
Total net losses included in income:
|
|
|
|
||||
Mortgage derivative loss
|
—
|
|
|
(275
|
)
|
||
Transfer out of level 3 securities
(a)
|
(200
|
)
|
|
—
|
|
||
Balance June 30, 2017
|
$
|
—
|
|
|
$
|
2,839
|
|
(a)
|
Commercial loans held for sale are carried at the lower of cost or estimated fair value. At
June 30, 2017
, the estimated fair value exceeded the cost and therefore there was no adjustment recognized in Income.
|
(b)
|
Effective January 1, 2017, residential loans originated for sale are accounted for under the fair value option. Prior periods have not been restated. For more information on this accounting policy change, please refer to Note 3.
|
(c)
|
Represents individually evaluated impaired loans, net of the related allowance for loan losses.
|
(d)
|
Represents provision for credit losses on individually evaluated impaired loans.
|
|
Valuation Technique
|
|
Significant Unobservable Input
|
|
Weighted Average Input Applied
|
June 30, 2017
|
|||||
Mortgage servicing rights
|
Discounted cash flow
|
|
Discount rate
|
|
11%
|
Mortgage servicing rights
|
Discounted cash flow
|
|
Constant prepayment rate
|
|
11%
|
Impaired Loans
|
Appraisals / Discounted cash flow
|
|
Collateral / Discount factor
|
|
20%
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
Fair Value Hierarchy Level
|
|
Carrying Amount
|
|
Fair Value
|
|
Carrying Amount
|
|
Fair Value
|
||||||||
|
|
|
|||||||||||||||
|
|
|
($ in Thousands)
|
||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and due from banks
|
Level 1
|
|
$
|
396,677
|
|
|
$
|
396,677
|
|
|
$
|
446,558
|
|
|
$
|
446,558
|
|
Interest-bearing deposits in other financial institutions
|
Level 1
|
|
126,232
|
|
|
126,232
|
|
|
149,175
|
|
|
149,175
|
|
||||
Federal funds sold and securities purchased under agreements to resell
|
Level 1
|
|
43,000
|
|
|
43,000
|
|
|
46,500
|
|
|
46,500
|
|
||||
Investment securities held to maturity
|
Level 2
|
|
2,255,395
|
|
|
2,263,322
|
|
|
1,273,536
|
|
|
1,264,674
|
|
||||
Investment securities available for sale
|
Level 1
|
|
2,636
|
|
|
2,636
|
|
|
2,602
|
|
|
2,602
|
|
||||
Investment securities available for sale
|
Level 2
|
|
3,684,834
|
|
|
3,684,834
|
|
|
4,677,424
|
|
|
4,677,424
|
|
||||
Investment securities available for sale
|
Level 3
|
|
—
|
|
|
—
|
|
|
200
|
|
|
200
|
|
||||
FHLB and Federal Reserve Bank stocks
|
Level 2
|
|
181,180
|
|
|
181,180
|
|
|
140,001
|
|
|
140,001
|
|
||||
Commercial loans held for sale
|
Level 2
|
|
4,772
|
|
|
4,772
|
|
|
12,474
|
|
|
12,474
|
|
||||
Residential loans held for sale
|
Level 2
|
|
41,620
|
|
|
41,620
|
|
|
108,010
|
|
|
108,010
|
|
||||
Loans, net
|
Level 3
|
|
20,501,968
|
|
|
20,377,586
|
|
|
19,776,381
|
|
|
19,680,317
|
|
||||
Bank owned life insurance
|
Level 2
|
|
588,440
|
|
|
588,440
|
|
|
585,290
|
|
|
585,290
|
|
||||
Derivatives (trading and other assets)
|
Level 2
|
|
50,107
|
|
|
50,107
|
|
|
54,974
|
|
|
54,974
|
|
||||
Derivatives (trading and other assets)
|
Level 3
|
|
2,839
|
|
|
2,839
|
|
|
3,114
|
|
|
3,114
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts
|
Level 3
|
|
$
|
19,677,850
|
|
|
$
|
19,677,850
|
|
|
$
|
20,282,321
|
|
|
$
|
20,282,321
|
|
Brokered CDs and other time deposits
|
Level 2
|
|
1,940,330
|
|
|
1,940,330
|
|
|
1,606,127
|
|
|
1,606,127
|
|
||||
Short-term funding
|
Level 2
|
|
1,402,482
|
|
|
1,402,482
|
|
|
1,092,035
|
|
|
1,092,035
|
|
||||
Long-term funding
|
Level 2
|
|
3,262,120
|
|
|
3,288,139
|
|
|
2,761,795
|
|
|
2,791,841
|
|
||||
Standby letters of credit
(a)
|
Level 2
|
|
2,394
|
|
|
2,394
|
|
|
2,566
|
|
|
2,566
|
|
||||
Derivatives (trading and other liabilities)
|
Level 2
|
|
48,674
|
|
|
48,674
|
|
|
53,679
|
|
|
53,679
|
|
(a)
|
The commitment on standby letters of credit was
$242 million
and
$260 million
at
June 30, 2017
and
December 31, 2016
, respectively. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
($ in Thousands)
|
||||||||||||||
Components of Net Periodic Benefit Cost
|
|
|
|
|
|
|
|
||||||||
Pension Plan:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
1,782
|
|
|
$
|
1,725
|
|
|
$
|
3,563
|
|
|
$
|
3,450
|
|
Interest cost
|
1,756
|
|
|
1,780
|
|
|
3,512
|
|
|
3,560
|
|
||||
Expected return on plan assets
|
(4,882
|
)
|
|
(5,065
|
)
|
|
(9,763
|
)
|
|
(10,130
|
)
|
||||
Amortization of prior service cost
|
(18
|
)
|
|
12
|
|
|
(37
|
)
|
|
25
|
|
||||
Amortization of actuarial loss
|
487
|
|
|
483
|
|
|
975
|
|
|
965
|
|
||||
Total net pension cost
|
$
|
(875
|
)
|
|
$
|
(1,065
|
)
|
|
$
|
(1,750
|
)
|
|
$
|
(2,130
|
)
|
Postretirement Plan:
|
|
|
|
|
|
|
|
||||||||
Interest cost
|
$
|
24
|
|
|
$
|
36
|
|
|
$
|
48
|
|
|
$
|
72
|
|
Amortization of prior service cost
|
(19
|
)
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
||||
Total net periodic benefit cost
|
$
|
5
|
|
|
$
|
36
|
|
|
$
|
10
|
|
|
$
|
72
|
|
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, 2017
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
179,259
|
|
|
$
|
179,059
|
|
|
$
|
5,775
|
|
|
$
|
364,093
|
|
Noninterest income
|
24,490
|
|
|
130,679
|
|
|
7,072
|
|
|
162,241
|
|
||||
Total revenue
|
203,749
|
|
|
309,738
|
|
|
12,847
|
|
|
526,334
|
|
||||
Credit provision*
|
23,050
|
|
|
10,271
|
|
|
(12,321
|
)
|
|
21,000
|
|
||||
Noninterest expense
|
76,897
|
|
|
241,339
|
|
|
31,771
|
|
|
350,007
|
|
||||
Income (loss) before income taxes
|
103,802
|
|
|
58,128
|
|
|
(6,603
|
)
|
|
155,327
|
|
||||
Income tax expense (benefit)
|
34,012
|
|
|
20,345
|
|
|
(13,283
|
)
|
|
41,074
|
|
||||
Net income
|
$
|
69,790
|
|
|
$
|
37,783
|
|
|
$
|
6,680
|
|
|
$
|
114,253
|
|
Return on average allocated capital (ROCET1)**
|
12.6
|
%
|
|
13.1
|
%
|
|
1.1
|
%
|
|
10.6
|
%
|
||||
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 (loss) 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
|
%
|
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, 2017
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
89,871
|
|
|
$
|
90,131
|
|
|
$
|
3,817
|
|
|
$
|
183,819
|
|
Noninterest income
|
12,497
|
|
|
65,809
|
|
|
4,104
|
|
|
82,410
|
|
||||
Total revenue
|
102,368
|
|
|
155,940
|
|
|
7,921
|
|
|
266,229
|
|
||||
Credit provision*
|
11,470
|
|
|
5,764
|
|
|
(5,234
|
)
|
|
12,000
|
|
||||
Noninterest expense
|
39,418
|
|
|
125,242
|
|
|
11,656
|
|
|
176,316
|
|
||||
Income (loss) before income taxes
|
51,480
|
|
|
24,934
|
|
|
1,499
|
|
|
77,913
|
|
||||
Income tax expense (benefit)
|
16,363
|
|
|
8,727
|
|
|
(5,160
|
)
|
|
19,930
|
|
||||
Net income
|
$
|
35,117
|
|
|
$
|
16,207
|
|
|
$
|
6,659
|
|
|
$
|
57,983
|
|
Return on average allocated capital (ROCET1)**
|
12.5
|
%
|
|
11.0
|
%
|
|
4.5
|
%
|
|
10.6
|
%
|
||||
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 (loss) before income taxes
|
38,751
|
|
|
21,890
|
|
|
9,884
|
|
|
70,525
|
|
||||
Income tax expense (benefit)
|
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
|
%
|
($ in Thousands)
|
Investments
Securities
Available
For Sale
|
|
Defined Benefit
Pension and
Post Retirement
Obligations
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||
Balance January 1, 2017
|
$
|
(20,079
|
)
|
|
$
|
(34,600
|
)
|
|
$
|
(54,679
|
)
|
Other comprehensive income before reclassifications
|
3,632
|
|
|
—
|
|
|
3,632
|
|
|||
Amounts reclassified from accumulated other comprehensive income:
|
|
|
|
|
|
||||||
Personnel expense
|
—
|
|
|
900
|
|
|
900
|
|
|||
Interest income (Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities)
|
(2,575
|
)
|
|
—
|
|
|
(2,575
|
)
|
|||
Income tax expense
|
(406
|
)
|
|
(342
|
)
|
|
(748
|
)
|
|||
Net other comprehensive income during period
|
651
|
|
|
558
|
|
|
1,209
|
|
|||
Balance June 30, 2017
|
$
|
(19,428
|
)
|
|
$
|
(34,042
|
)
|
|
$
|
(53,470
|
)
|
|
|
|
|
|
|
||||||
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
|
|
|
|
|
|
|
|
||||||
|
Investments
Securities Available For Sale |
|
Defined Benefit
Pension and Post Retirement Obligations |
|
Accumulated
Other Comprehensive Income (Loss) |
||||||
Balance April 1, 2017
|
$
|
(22,023
|
)
|
|
$
|
(34,321
|
)
|
|
$
|
(56,344
|
)
|
Other comprehensive income before reclassifications
|
5,744
|
|
|
—
|
|
|
5,744
|
|
|||
Amounts reclassified from accumulated other comprehensive income:
|
|
|
|
|
|
||||||
Personnel expense
|
—
|
|
|
450
|
|
|
450
|
|
|||
Interest income (Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities)
|
(1,548
|
)
|
|
—
|
|
|
(1,548
|
)
|
|||
Income tax expense
|
(1,601
|
)
|
|
(171
|
)
|
|
(1,772
|
)
|
|||
Net other comprehensive income during period
|
2,595
|
|
|
279
|
|
|
2,874
|
|
|||
Balance June 30, 2017
|
$
|
(19,428
|
)
|
|
$
|
(34,042
|
)
|
|
$
|
(53,470
|
)
|
|
|
|
|
|
|
||||||
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
|
|
ITEM 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Average loans of
$20.3 billion
increased
$1.0 billion
, or
5%
, from the first six months of
2016
, and residential mortgage lending accounted for
73%
of average loan growth. Average deposits of
$21.5 billion
increased
$1.1 billion
, or
5%
, from the first six months of
2016
. For the remainder of 2017, the Corporation expects mid-to-high single digit annual average loan growth and to maintain the loan to deposit ratio under 100%.
|
•
|
Net interest income of
$364 million
increased
$15 million
, or
4%
, from the first six months of
2016
. Net interest margin was
2.83%
compared to
2.81%
in the first six months of
2016
. For the remainder of 2017, the Corporation expects an improving net interest margin trend.
|
•
|
Provision for credit losses of
$21 million
decreased
$13 million
, or
38%
, from the first six months of
2016
. For the remainder of 2017, the Corporation expects the provision for loan losses will change based on changes in risk grade or other indicators of credit quality, and loan volume.
|
•
|
Noninterest income of
$162 million
was
down
2%
from the first six months of
2016
and reflected lower investment securities gains. For the remainder of 2017, the Corporation expects improving fee-based revenues and declining mortgage banking revenue.
|
•
|
Noninterest expense of
$350 million
was essentially flat from the
second
quarter of
2016
. For the remainder of 2017, the Corporation expects noninterest expense to be approximately 1% higher than the prior year; however, the Corporation also expects continued improvement in the efficiency ratio due to increasing revenue.
|
($ in thousands, except per share data)
|
YTD Jun 2017
|
|
YTD Jun 2016
|
|
2Q17
|
|
1Q17
|
|
4Q16
|
|
3Q16
|
|
2Q16
|
||||||||||||||
Net income
|
$
|
114,253
|
|
|
$
|
91,625
|
|
|
$
|
57,983
|
|
|
$
|
56,270
|
|
|
$
|
54,833
|
|
|
$
|
53,816
|
|
|
$
|
49,091
|
|
Net income available to common equity
|
109,584
|
|
|
87,258
|
|
|
55,644
|
|
|
53,940
|
|
|
52,485
|
|
|
51,628
|
|
|
46,922
|
|
|||||||
Earnings per common share - basic
|
0.72
|
|
|
0.58
|
|
|
0.36
|
|
|
0.36
|
|
|
0.35
|
|
|
0.34
|
|
|
0.31
|
|
|||||||
Earnings per common share - diluted
|
0.71
|
|
|
0.58
|
|
|
0.36
|
|
|
0.35
|
|
|
0.34
|
|
|
0.34
|
|
|
0.31
|
|
|||||||
Effective tax rate
|
26.44
|
%
|
|
30.45
|
%
|
|
25.58
|
%
|
|
27.31
|
%
|
|
30.07
|
%
|
|
30.52
|
%
|
|
30.39
|
%
|
|
Six months ended June 30,
|
||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||
|
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
|
$
|
7,260,839
|
|
$
|
126,187
|
|
3.50
|
%
|
|
$
|
7,297,847
|
|
$
|
116,380
|
|
3.21
|
%
|
Commercial real estate lending
|
4,982,027
|
|
92,697
|
|
3.75
|
%
|
|
4,561,821
|
|
79,158
|
|
3.49
|
%
|
||||
Total commercial
|
12,242,866
|
|
218,884
|
|
3.60
|
%
|
|
11,859,668
|
|
195,538
|
|
3.31
|
%
|
||||
Residential mortgage
|
6,762,319
|
|
109,404
|
|
3.24
|
%
|
|
6,025,102
|
|
96,130
|
|
3.19
|
%
|
||||
Retail
|
1,293,414
|
|
31,497
|
|
4.88
|
%
|
|
1,397,638
|
|
32,984
|
|
4.73
|
%
|
||||
Total loans
|
20,298,599
|
|
359,785
|
|
3.56
|
%
|
|
19,282,408
|
|
324,652
|
|
3.38
|
%
|
||||
Investment securities:
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
4,805,819
|
|
47,133
|
|
1.96
|
%
|
|
5,000,754
|
|
49,786
|
|
1.99
|
%
|
||||
Tax-exempt
(1)
|
1,140,889
|
|
24,897
|
|
4.36
|
%
|
|
1,054,731
|
|
24,057
|
|
4.56
|
%
|
||||
Other short-term investments
|
297,747
|
|
3,089
|
|
2.09
|
%
|
|
282,318
|
|
2,385
|
|
1.70
|
%
|
||||
Investments and other
|
6,244,455
|
|
75,119
|
|
2.41
|
%
|
|
6,337,803
|
|
76,228
|
|
2.41
|
%
|
||||
Total earning assets
|
26,543,054
|
|
$
|
434,904
|
|
3.29
|
%
|
|
25,620,211
|
|
$
|
400,880
|
|
3.14
|
%
|
||
Other assets, net
|
2,447,719
|
|
|
|
|
2,450,451
|
|
|
|
||||||||
Total assets
|
$
|
28,990,773
|
|
|
|
|
$
|
28,070,662
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
||||||||||
Savings
|
$
|
1,503,678
|
|
$
|
389
|
|
0.05
|
%
|
|
$
|
1,406,333
|
|
$
|
464
|
|
0.07
|
%
|
Interest-bearing demand
|
4,262,047
|
|
9,716
|
|
0.46
|
%
|
|
3,430,571
|
|
4,176
|
|
0.24
|
%
|
||||
Money market
|
9,116,719
|
|
21,150
|
|
0.47
|
%
|
|
9,062,514
|
|
12,753
|
|
0.28
|
%
|
||||
Time
|
1,683,177
|
|
6,849
|
|
0.82
|
%
|
|
1,549,351
|
|
6,051
|
|
0.79
|
%
|
||||
Total interest-bearing deposits
|
16,565,621
|
|
38,104
|
|
0.46
|
%
|
|
15,448,769
|
|
23,444
|
|
0.31
|
%
|
||||
Federal funds purchased and securities sold under agreements to repurchase
|
492,425
|
|
1,339
|
|
0.55
|
%
|
|
617,007
|
|
674
|
|
0.22
|
%
|
||||
Other short-term funding
|
763,245
|
|
2,907
|
|
0.77
|
%
|
|
993,704
|
|
1,360
|
|
0.28
|
%
|
||||
Total short-term funding
|
1,255,670
|
|
4,246
|
|
0.68
|
%
|
|
1,610,711
|
|
2,034
|
|
0.25
|
%
|
||||
Long-term funding
|
2,847,570
|
|
17,946
|
|
1.27
|
%
|
|
2,817,560
|
|
16,428
|
|
1.17
|
%
|
||||
Total short and long-term funding
|
4,103,240
|
|
22,192
|
|
1.09
|
%
|
|
4,428,271
|
|
18,462
|
|
0.84
|
%
|
||||
Total interest-bearing liabilities
|
20,668,861
|
|
$
|
60,296
|
|
0.59
|
%
|
|
19,877,040
|
|
$
|
41,906
|
|
0.42
|
%
|
||
Noninterest-bearing demand deposits
|
4,928,973
|
|
|
|
|
4,983,197
|
|
|
|
||||||||
Other liabilities
|
248,559
|
|
|
|
|
230,528
|
|
|
|
||||||||
Stockholders’ equity
|
3,144,380
|
|
|
|
|
2,979,897
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
28,990,773
|
|
|
|
|
$
|
28,070,662
|
|
|
|
||||||
Interest rate spread
|
|
|
2.70
|
%
|
|
|
|
2.72
|
%
|
||||||||
Net free funds
|
|
|
0.13
|
%
|
|
|
|
0.09
|
%
|
||||||||
Fully tax-equivalent net interest income and net interest margin
|
|
$
|
374,608
|
|
2.83
|
%
|
|
|
$
|
358,974
|
|
2.81
|
%
|
||||
Fully tax-equivalent adjustment
|
|
10,515
|
|
|
|
|
10,270
|
|
|
||||||||
Net interest income
|
|
$
|
364,093
|
|
|
|
|
$
|
348,704
|
|
|
(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.
|
|
Quarter ended
|
|||||||||||||||||||||||||
|
June 30, 2017
|
|
March 31, 2017
|
|
June 30, 2016
|
|||||||||||||||||||||
|
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
|
$
|
7,321,523
|
|
$
|
65,507
|
|
3.59
|
%
|
|
$
|
7,199,481
|
|
$
|
60,680
|
|
3.42
|
%
|
|
$
|
7,474,633
|
|
$
|
59,088
|
|
3.18
|
%
|
Commercial real estate lending
|
4,964,257
|
|
47,562
|
|
3.84
|
%
|
|
4,999,994
|
|
45,135
|
|
3.66
|
%
|
|
4,654,111
|
|
40,169
|
|
3.47
|
%
|
||||||
Total commercial
|
12,285,780
|
|
113,069
|
|
3.69
|
%
|
|
12,199,475
|
|
105,815
|
|
3.52
|
%
|
|
12,128,744
|
|
99,257
|
|
3.29
|
%
|
||||||
Residential mortgage
|
6,957,865
|
|
56,097
|
|
3.23
|
%
|
|
6,564,600
|
|
53,306
|
|
3.25
|
%
|
|
6,129,924
|
|
48,382
|
|
3.16
|
%
|
||||||
Retail
|
1,278,345
|
|
16,048
|
|
5.03
|
%
|
|
1,308,650
|
|
15,450
|
|
4.74
|
%
|
|
1,383,317
|
|
16,378
|
|
4.74
|
%
|
||||||
Total loans
|
20,521,990
|
|
185,214
|
|
3.62
|
%
|
|
20,072,725
|
|
174,571
|
|
3.51
|
%
|
|
19,641,985
|
|
164,017
|
|
3.35
|
%
|
||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
4,781,488
|
|
23,658
|
|
1.98
|
%
|
|
4,830,421
|
|
23,475
|
|
1.94
|
%
|
|
4,967,437
|
|
24,270
|
|
1.95
|
%
|
||||||
Tax-exempt
(1)
|
1,143,736
|
|
12,459
|
|
4.36
|
%
|
|
1,138,010
|
|
12,438
|
|
4.37
|
%
|
|
1,064,252
|
|
12,077
|
|
4.54
|
%
|
||||||
Other short-term investments
|
297,341
|
|
1,553
|
|
2.09
|
%
|
|
298,158
|
|
1,536
|
|
2.08
|
%
|
|
294,375
|
|
1,318
|
|
1.80
|
%
|
||||||
Investments and other
|
6,222,565
|
|
37,670
|
|
2.42
|
%
|
|
6,266,589
|
|
37,449
|
|
2.39
|
%
|
|
6,326,064
|
|
37,665
|
|
2.38
|
%
|
||||||
Total earning assets
|
26,744,555
|
|
$
|
222,884
|
|
3.34
|
%
|
|
26,339,314
|
|
$
|
212,020
|
|
3.24
|
%
|
|
25,968,049
|
|
$
|
201,682
|
|
3.12
|
%
|
|||
Other assets, net
|
2,454,351
|
|
|
|
|
2,441,013
|
|
|
|
|
2,674,427
|
|
|
|
||||||||||||
Total assets
|
$
|
29,198,906
|
|
|
|
|
$
|
28,780,327
|
|
|
|
|
$
|
28,642,476
|
|
|
|
|||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings
|
$
|
1,541,129
|
|
$
|
201
|
|
0.05
|
%
|
|
$
|
1,465,811
|
|
$
|
188
|
|
0.05
|
%
|
|
$
|
1,445,020
|
|
$
|
228
|
|
0.06
|
%
|
Interest-bearing demand
|
4,272,620
|
|
5,506
|
|
0.52
|
%
|
|
4,251,357
|
|
4,210
|
|
0.40
|
%
|
|
3,640,733
|
|
2,144
|
|
0.24
|
%
|
||||||
Money market
|
9,064,874
|
|
11,763
|
|
0.52
|
%
|
|
9,169,141
|
|
9,388
|
|
0.42
|
%
|
|
8,692,782
|
|
6,309
|
|
0.29
|
%
|
||||||
Time
|
1,752,255
|
|
3,710
|
|
0.85
|
%
|
|
1,613,331
|
|
3,138
|
|
0.79
|
%
|
|
1,540,424
|
|
2,997
|
|
0.78
|
%
|
||||||
Total interest-bearing deposits
|
16,630,878
|
|
21,180
|
|
0.51
|
%
|
|
16,499,640
|
|
16,924
|
|
0.42
|
%
|
|
15,318,959
|
|
11,678
|
|
0.31
|
%
|
||||||
Federal funds purchased and securities sold under agreements to repurchase
|
489,571
|
|
824
|
|
0.67
|
%
|
|
495,311
|
|
515
|
|
0.42
|
%
|
|
674,360
|
|
378
|
|
0.23
|
%
|
||||||
Other short-term funding
|
842,305
|
|
1,827
|
|
0.87
|
%
|
|
683,306
|
|
1,080
|
|
0.64
|
%
|
|
1,209,511
|
|
845
|
|
0.28
|
%
|
||||||
Total short-term funding
|
1,331,876
|
|
2,651
|
|
0.80
|
%
|
|
1,178,617
|
|
1,595
|
|
0.55
|
%
|
|
1,883,871
|
|
1,223
|
|
0.26
|
%
|
||||||
Long-term funding
|
2,932,348
|
|
9,950
|
|
1.36
|
%
|
|
2,761,850
|
|
7,996
|
|
1.17
|
%
|
|
3,052,581
|
|
6,923
|
|
0.91
|
%
|
||||||
Total short and long-term funding
|
4,264,224
|
|
12,601
|
|
1.18
|
%
|
|
3,940,467
|
|
9,591
|
|
0.98
|
%
|
|
4,936,452
|
|
8,146
|
|
0.66
|
%
|
||||||
Total interest-bearing liabilities
|
20,895,102
|
|
$
|
33,781
|
|
0.65
|
%
|
|
20,440,107
|
|
$
|
26,515
|
|
0.52
|
%
|
|
20,255,411
|
|
$
|
19,824
|
|
0.39
|
%
|
|||
Noninterest-bearing demand deposits
|
4,892,271
|
|
|
|
|
4,966,082
|
|
|
|
|
4,969,994
|
|
|
|
||||||||||||
Other liabilities
|
246,395
|
|
|
|
|
250,747
|
|
|
|
|
228,027
|
|
|
|
||||||||||||
Stockholders’ equity
|
3,165,138
|
|
|
|
|
3,123,391
|
|
|
|
|
3,189,044
|
|
|
|
||||||||||||
Total liabilities and stockholders’ equity
|
$
|
29,198,906
|
|
|
|
|
$
|
28,780,327
|
|
|
|
|
$
|
28,642,476
|
|
|
|
|||||||||
Interest rate spread
|
|
|
2.69
|
%
|
|
|
|
2.72
|
%
|
|
|
|
2.73
|
%
|
||||||||||||
Net free funds
|
|
|
0.14
|
%
|
|
|
|
0.12
|
%
|
|
|
|
0.08
|
%
|
||||||||||||
Fully tax-equivalent net interest income and net interest margin
|
|
$
|
189,103
|
|
2.83
|
%
|
|
|
$
|
185,505
|
|
2.84
|
%
|
|
|
$
|
181,858
|
|
2.81
|
%
|
||||||
Fully tax-equivalent adjustment
|
|
5,284
|
|
|
|
|
5,231
|
|
|
|
|
5,141
|
|
|
||||||||||||
Net interest income
|
|
$
|
183,819
|
|
|
|
|
$
|
180,274
|
|
|
|
|
$
|
176,717
|
|
|
(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
$364 million
for the first six months of
2017
compared to
$349 million
for the first six months of
2016
. 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
$375 million
for the first six months of
2017
was $16 million higher than the first six months of
2016
.
|
•
|
Average earning assets of
$26.5 billion
for the first six months of
2017
were $923 million, or 4%, higher than the first six months of
2016
. Average loans increased $1.0 billion, or 5%, primarily due to a $737 million increase in residential mortgage loans and a $420 million increase in commercial real estate lending, partially offset by a $104 million decrease in other retail loans.
|
•
|
Average interest-bearing liabilities of $
20.7 billion
for the first six months of
2017
were up $792 million, or 4%, versus the first six months of
2016
. On average, interest-bearing deposits increased $1.1 billion and short-term funding decreased $355 million to
$1.3 billion
from the first six months of
2016
.
|
•
|
The net interest margin for the first six months of
2017
was
2.83%
, compared to
2.81%
for the first six months of
2016
.
|
•
|
For the first six months of
2017
, loan yields increased 18 bp to
3.56
% compared to the first six months of 2016. The yield on investment securities and other short-term investments remained flat at
2.41
%.
|
•
|
The cost of interest-bearing liabilities was
0.59
% for the first six months of
2017
, 17 bp higher than the first six months of
2016
. The increase was primarily due to a 15 bp increase in the cost of average interest-bearing deposits (to
0.46
%) and a 43 bp increase in the cost of short-term funding (to
0.68
%), both primarily due to increases in the Federal Reserve interest rate.
|
•
|
The Federal Reserve increased the targeted federal funds rate on June 14, 2017, to a range of 1.00%-1.25% from 0.75%-1.00%. The Federal Reserve expects gradual increases in the Federal Funds rate, however, the timing and magnitude of any such increases are uncertain and will depend on domestic and global economic conditions.
|
|
|
|
YTD % Change
|
|
|
|
|
|
2Q17 Change vs
|
||||||||||||||||||
($ in Thousands)
|
YTD 2017
|
YTD 2016
|
2Q17
|
1Q17
|
4Q16
|
3Q16
|
2Q16
|
1Q17
|
2Q16
|
||||||||||||||||||
Trust service fees
|
$
|
24,281
|
|
$
|
22,956
|
|
6
|
%
|
$
|
12,346
|
|
$
|
11,935
|
|
$
|
12,211
|
|
$
|
11,700
|
|
$
|
11,509
|
|
3
|
%
|
7
|
%
|
Service charges on deposit accounts
|
32,386
|
|
32,717
|
|
(1
|
)%
|
16,030
|
|
16,356
|
|
16,447
|
|
17,445
|
|
16,444
|
|
(2
|
)%
|
(3
|
)%
|
|||||||
Card-based and other nondeposit fees
|
26,229
|
|
24,708
|
|
6
|
%
|
13,764
|
|
12,465
|
|
12,592
|
|
12,777
|
|
12,717
|
|
10
|
%
|
8
|
%
|
|||||||
Insurance commissions
|
42,473
|
|
43,387
|
|
(2
|
)%
|
20,853
|
|
21,620
|
|
17,977
|
|
19,431
|
|
22,005
|
|
(4
|
)%
|
(5
|
)%
|
|||||||
Brokerage and annuity commissions
|
8,679
|
|
7,892
|
|
10
|
%
|
4,346
|
|
4,333
|
|
4,188
|
|
4,155
|
|
4,098
|
|
—
|
%
|
6
|
%
|
|||||||
Subtotal ("fee-based revenue")
|
134,048
|
|
131,660
|
|
2
|
%
|
67,339
|
|
66,709
|
|
63,415
|
|
65,508
|
|
66,773
|
|
1
|
%
|
1
|
%
|
|||||||
Mortgage banking income
|
14,965
|
|
16,287
|
|
(8
|
)%
|
7,692
|
|
7,273
|
|
12,058
|
|
21,903
|
|
8,300
|
|
6
|
%
|
(7
|
)%
|
|||||||
Mortgage servicing rights expense
|
5,359
|
|
8,016
|
|
(33
|
)%
|
2,665
|
|
2,694
|
|
499
|
|
3,612
|
|
4,233
|
|
(1
|
)%
|
(37
|
)%
|
|||||||
Mortgage banking, net
|
9,606
|
|
8,271
|
|
16
|
%
|
5,027
|
|
4,579
|
|
11,559
|
|
18,291
|
|
4,067
|
|
10
|
%
|
24
|
%
|
|||||||
Capital market fees, net
|
7,925
|
|
7,331
|
|
8
|
%
|
4,042
|
|
3,883
|
|
7,716
|
|
7,012
|
|
3,793
|
|
4
|
%
|
7
|
%
|
|||||||
Bank owned life insurance income
|
6,514
|
|
7,743
|
|
(16
|
)%
|
3,899
|
|
2,615
|
|
3,338
|
|
3,290
|
|
2,973
|
|
49
|
%
|
31
|
%
|
|||||||
Other
|
4,492
|
|
3,960
|
|
13
|
%
|
2,213
|
|
2,279
|
|
2,379
|
|
2,180
|
|
1,789
|
|
(3
|
)%
|
24
|
%
|
|||||||
Subtotal (“fee income”)
|
162,585
|
|
158,965
|
|
2
|
%
|
82,520
|
|
80,065
|
|
88,407
|
|
96,281
|
|
79,395
|
|
3
|
%
|
4
|
%
|
|||||||
Asset gains (losses), net
|
(700
|
)
|
181
|
|
N/M
|
|
(466
|
)
|
(234
|
)
|
767
|
|
(1,034
|
)
|
(343
|
)
|
99
|
%
|
36
|
%
|
|||||||
Investment securities gains (losses), net
|
356
|
|
6,214
|
|
(94
|
)%
|
356
|
|
—
|
|
3,115
|
|
(13
|
)
|
3,116
|
|
N/M
|
|
(89
|
)%
|
|||||||
Total noninterest income
|
$
|
162,241
|
|
$
|
165,360
|
|
(2
|
)%
|
$
|
82,410
|
|
$
|
79,831
|
|
$
|
92,289
|
|
$
|
95,234
|
|
$
|
82,168
|
|
3
|
%
|
—
|
%
|
Mortgage loans originated for sale during period
|
$220,284
|
$517,838
|
(57
|
)%
|
$119,004
|
$101,280
|
$287,194
|
$466,092
|
$323,989
|
18
|
%
|
(63
|
)%
|
||||||||||||||
Mortgage loan settlements during period
|
$364,128
|
$491,980
|
(26
|
)%
|
$167,550
|
$196,578
|
$395,382
|
$655,298
|
$270,216
|
(15
|
)%
|
(38
|
)%
|
||||||||||||||
Trust assets under management, at market value
|
$8,997,305
|
$7,944,187
|
13
|
%
|
$8,997,305
|
$8,715,965
|
$8,301,564
|
$8,178,839
|
$7,944,187
|
3
|
%
|
13
|
%
|
||||||||||||||
Fee income ratio
|
31
|
%
|
31
|
%
|
|
31
|
%
|
31
|
%
|
32
|
%
|
35
|
%
|
31
|
%
|
|
|
||||||||||
N/M = Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
•
|
Fee-based revenue was
$134 million
, an increase of $2 million (
2%
) compared to the six months ended June 30, 2016. Within fee based revenue, card-based and other nondeposit fees increased $2 million.
|
•
|
Net mortgage banking income for the first half of 2017 was
$10 million
, an increase of $1 million compared to the first half of 2016 due to a favorable change in the mortgage servicing rights valuation, reflecting higher interest rates at June 30, 2017.
|
•
|
Net investment securities gains were down $6 million for the six months ended June 30,
2017
, due to $6 million gain on the sales of FNMA and FHLMC securities in the six months ended June 30, 2016. During the first six months ended June 30, 2017, net securities gains were approximately $356,000.
|
|
|
|
|
|
|
|
|
|
2Q17 Change vs
|
||||||||||||||||||
($ in Thousands)
|
YTD 2017
|
YTD 2016
|
YTD % Change
|
2Q17
|
1Q17
|
4Q16
|
3Q16
|
2Q16
|
1Q17
|
2Q16
|
|||||||||||||||||
Personnel expense
|
$
|
209,102
|
|
$
|
203,527
|
|
3
|
%
|
$
|
104,683
|
|
$
|
104,419
|
|
$
|
107,491
|
|
$
|
103,819
|
|
$
|
102,129
|
|
—
|
%
|
3
|
%
|
Occupancy
|
28,051
|
|
27,017
|
|
4
|
%
|
12,832
|
|
15,219
|
|
13,690
|
|
15,362
|
|
13,215
|
|
(16
|
)%
|
(3
|
)%
|
|||||||
Equipment
|
10,719
|
|
10,842
|
|
(1
|
)%
|
5,234
|
|
5,485
|
|
5,328
|
|
5,319
|
|
5,396
|
|
(5
|
)%
|
(3
|
)%
|
|||||||
Technology
|
29,893
|
|
28,714
|
|
4
|
%
|
15,473
|
|
14,420
|
|
14,413
|
|
14,173
|
|
14,450
|
|
7
|
%
|
7
|
%
|
|||||||
Business development and advertising
|
12,987
|
|
14,802
|
|
(12
|
)%
|
7,152
|
|
5,835
|
|
6,298
|
|
5,251
|
|
6,591
|
|
23
|
%
|
9
|
%
|
|||||||
Other intangible amortization
|
1,009
|
|
1,043
|
|
(3
|
)%
|
496
|
|
513
|
|
525
|
|
525
|
|
539
|
|
(3
|
)%
|
(8
|
)%
|
|||||||
Loan expense
|
5,594
|
|
6,663
|
|
(16
|
)%
|
2,974
|
|
2,620
|
|
3,443
|
|
3,535
|
|
3,442
|
|
14
|
%
|
(14
|
)%
|
|||||||
Legal and professional fees
|
9,877
|
|
9,881
|
|
—
|
%
|
5,711
|
|
4,166
|
|
5,184
|
|
4,804
|
|
4,856
|
|
37
|
%
|
18
|
%
|
|||||||
Foreclosure / OREO expense
|
2,687
|
|
3,207
|
|
(16
|
)%
|
1,182
|
|
1,505
|
|
677
|
|
960
|
|
1,330
|
|
(21
|
)%
|
(11
|
)%
|
|||||||
FDIC expense
|
16,000
|
|
16,500
|
|
(3
|
)%
|
8,000
|
|
8,000
|
|
9,250
|
|
9,000
|
|
8,750
|
|
—
|
%
|
(9
|
)%
|
|||||||
Other expense
|
24,088
|
|
26,135
|
|
(8
|
)%
|
12,579
|
|
11,509
|
|
12,616
|
|
12,566
|
|
13,662
|
|
9
|
%
|
(8
|
)%
|
|||||||
Total noninterest expense
|
$
|
350,007
|
|
$
|
348,331
|
|
—
|
%
|
$
|
176,316
|
|
$
|
173,691
|
|
$
|
178,915
|
|
$
|
175,314
|
|
$
|
174,360
|
|
2
|
%
|
1
|
%
|
Personnel expense to total noninterest expense
|
60
|
%
|
58
|
%
|
|
59
|
%
|
60
|
%
|
60
|
%
|
59
|
%
|
59
|
%
|
|
|
||||||||||
Average full-time equivalent employees
|
4,361
|
4,394
|
|
4,352
|
4,370
|
4,439
|
4,477
|
4,415
|
|
|
•
|
Personnel expense (which includes salary-related expenses and fringe benefit expenses) was
$209 million
for the six months ended
June 30, 2017
, up $6 million (3%) from the six months ended
June 30, 2016
. The increase was primarily due to a $4 million increase in incentive plan expense, along with $2 million increase in health insurance costs.
|
•
|
Nonpersonnel noninterest expense on a combined basis were $141 million, down $4 million (3%) compared to the first half of
2016
. Technology expense was up $1 million (4%) from the six months ended
June 30, 2016
, due to continual investment in solutions to drive operational efficiency. Business development and advertising was down $2 million from the first half of
2016
due to a shift in the Corporation's advertising strategy from television to digital advertising.
|
•
|
At
June 30, 2017
, total assets were
$29.8 billion
, up
$630 million
(
2%
) from
December 31, 2016
and up
$730 million
(
3%
) from
June 30, 2016
.
|
•
|
Loans of
$20.8 billion
at
June 30, 2017
were up $728 million (
4%
) from
December 31, 2016
and were up
$968 million
(
5%
) from
June 30, 2016
. See section "Loans" for additional information on loans.
|
•
|
Investment securities were
$5.9 billion
at
June 30, 2017
, relatively unchanged from year-end
2016
and down
$95 million
(
2%
) from
June 30, 2016
.
|
•
|
At
June 30, 2017
, total deposits of
$21.6 billion
were down
$270 million
(1%) from
December 31, 2016
and were up
$1.3 billion
(
7%
) from
June 30, 2016
. See section "Deposits and Customer Funding" for additional information on deposits.
|
•
|
Short and long-term funding of
$4.7 billion
at
June 30, 2017
were up
$811 million
(
21%
) from year-end
2016
and down
$758 million
(
14%
) from
June 30, 2016
.
|
|
|
|||||||||||||||||||||||||||||||||
|
June 30, 2017
|
|
March 31, 2017
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|||||||||||||||||||||||||
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|||||||||||||||
|
($ in Thousands)
|
|||||||||||||||||||||||||||||||||
Commercial and industrial
|
$
|
6,571,000
|
|
|
32
|
%
|
|
$
|
6,300,646
|
|
|
31
|
%
|
|
$
|
6,489,014
|
|
|
32
|
%
|
|
$
|
6,721,557
|
|
|
34
|
%
|
|
$
|
6,701,986
|
|
|
34
|
%
|
Commercial real estate — owner occupied
|
845,336
|
|
|
4
|
%
|
|
878,391
|
|
|
4
|
%
|
|
897,724
|
|
|
5
|
%
|
|
892,678
|
|
|
4
|
%
|
|
921,736
|
|
|
5
|
%
|
|||||
Commercial and business lending
|
7,416,336
|
|
|
36
|
%
|
|
7,179,037
|
|
|
35
|
%
|
|
7,386,738
|
|
|
37
|
%
|
|
7,614,235
|
|
|
38
|
%
|
|
7,623,722
|
|
|
39
|
%
|
|||||
Commercial real estate — investor
|
3,329,585
|
|
|
16
|
%
|
|
3,415,355
|
|
|
17
|
%
|
|
3,574,732
|
|
|
18
|
%
|
|
3,530,370
|
|
|
18
|
%
|
|
3,495,791
|
|
|
18
|
%
|
|||||
Real estate construction
|
1,651,805
|
|
|
8
|
%
|
|
1,553,205
|
|
|
8
|
%
|
|
1,432,497
|
|
|
7
|
%
|
|
1,314,431
|
|
|
7
|
%
|
|
1,285,573
|
|
|
6
|
%
|
|||||
Commercial real estate lending
|
4,981,390
|
|
|
24
|
%
|
|
4,968,560
|
|
|
25
|
%
|
|
5,007,229
|
|
|
25
|
%
|
|
4,844,801
|
|
|
25
|
%
|
|
4,781,364
|
|
|
24
|
%
|
|||||
Total commercial
|
12,397,726
|
|
|
60
|
%
|
|
12,147,597
|
|
|
60
|
%
|
|
12,393,967
|
|
|
62
|
%
|
|
12,459,036
|
|
|
63
|
%
|
|
12,405,086
|
|
|
63
|
%
|
|||||
Residential mortgage
|
7,115,457
|
|
|
34
|
%
|
|
6,715,282
|
|
|
33
|
%
|
|
6,332,327
|
|
|
31
|
%
|
|
6,034,166
|
|
|
30
|
%
|
|
6,035,720
|
|
|
30
|
%
|
|||||
Home equity
|
897,111
|
|
|
4
|
%
|
|
911,969
|
|
|
5
|
%
|
|
934,443
|
|
|
5
|
%
|
|
951,594
|
|
|
5
|
%
|
|
968,771
|
|
|
5
|
%
|
|||||
Other consumer
|
372,775
|
|
|
2
|
%
|
|
372,835
|
|
|
2
|
%
|
|
393,979
|
|
|
2
|
%
|
|
399,209
|
|
|
2
|
%
|
|
405,709
|
|
|
2
|
%
|
|||||
Total consumer
|
8,385,343
|
|
|
40
|
%
|
|
8,000,086
|
|
|
40
|
%
|
|
7,660,749
|
|
|
38
|
%
|
|
7,384,969
|
|
|
37
|
%
|
|
7,410,200
|
|
|
37
|
%
|
|||||
Total loans
|
$
|
20,783,069
|
|
|
100
|
%
|
|
$
|
20,147,683
|
|
|
100
|
%
|
|
$
|
20,054,716
|
|
|
100
|
%
|
|
$
|
19,844,005
|
|
|
100
|
%
|
|
$
|
19,815,286
|
|
|
100
|
%
|
|
June 30, 2017
|
|
March 31, 2017
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
||||||||||
|
($ in Millions)
|
||||||||||||||||||
Pass
|
$
|
411
|
|
|
$
|
405
|
|
|
$
|
426
|
|
|
$
|
351
|
|
|
$
|
387
|
|
Special mention
|
39
|
|
|
8
|
|
|
20
|
|
|
47
|
|
|
64
|
|
|||||
Potential problem
|
37
|
|
|
78
|
|
|
75
|
|
|
171
|
|
|
176
|
|
|||||
Nonaccrual
|
114
|
|
|
134
|
|
|
147
|
|
|
127
|
|
|
129
|
|
|||||
Total Oil and gas related loans
|
$
|
601
|
|
|
$
|
625
|
|
|
$
|
668
|
|
|
$
|
696
|
|
|
$
|
756
|
|
Quarter net charge offs
|
$
|
12
|
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
22
|
|
|
$
|
19
|
|
Oil and gas related allowance
|
$
|
33
|
|
|
$
|
42
|
|
|
$
|
38
|
|
|
$
|
38
|
|
|
$
|
42
|
|
Oil and gas related allowance ratio
|
5.4
|
%
|
|
6.7
|
%
|
|
5.7
|
%
|
|
5.5
|
%
|
|
5.6
|
%
|
|
|
|||||||||||||||||
June 30, 2017
|
Within 1 Year
(a)
|
|
1-5 Years
|
|
After 5 Years
|
|
Total
|
|
% of Total
|
|||||||||
|
($ in Thousands)
|
|||||||||||||||||
Commercial and industrial
|
$
|
5,785,922
|
|
|
$
|
549,498
|
|
|
$
|
235,580
|
|
|
$
|
6,571,000
|
|
|
53
|
%
|
Commercial real estate — investor
|
2,342,608
|
|
|
920,458
|
|
|
66,519
|
|
|
3,329,585
|
|
|
27
|
%
|
||||
Commercial real estate — owner occupied
|
401,051
|
|
|
323,533
|
|
|
120,752
|
|
|
845,336
|
|
|
7
|
%
|
||||
Real estate construction
|
1,501,478
|
|
|
122,820
|
|
|
27,507
|
|
|
1,651,805
|
|
|
13
|
%
|
||||
Total
|
$
|
10,031,059
|
|
|
$
|
1,916,309
|
|
|
$
|
450,358
|
|
|
$
|
12,397,726
|
|
|
100
|
%
|
Fixed rate
|
$
|
4,319,243
|
|
|
$
|
773,527
|
|
|
$
|
309,504
|
|
|
$
|
5,402,274
|
|
|
44
|
%
|
Floating or adjustable rate
|
5,711,816
|
|
|
1,142,782
|
|
|
140,854
|
|
|
6,995,452
|
|
|
56
|
%
|
||||
Total
|
$
|
10,031,059
|
|
|
$
|
1,916,309
|
|
|
$
|
450,358
|
|
|
$
|
12,397,726
|
|
|
100
|
%
|
Percent by maturity distribution
|
81
|
%
|
|
15
|
%
|
|
4
|
%
|
|
100
|
%
|
|
|
(a)
|
Demand loans, past due loans, and overdrafts are reported in the “Within 1 Year” category.
|
|
$ in Thousands
|
|
% to Total
|
|||
Less than 5 years
|
$
|
53,394
|
|
|
6
|
%
|
5 — 10 years
|
216,968
|
|
|
27
|
%
|
|
Over 10 years
|
545,185
|
|
|
67
|
%
|
|
Total home equity revolving lines of credit
|
$
|
815,547
|
|
|
100
|
%
|
|
|
||||||||||||||||||
|
June 30,
2017 |
|
March 31,
2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
||||||||||
|
($ in Thousands)
|
||||||||||||||||||
Nonperforming assets:
|
|
||||||||||||||||||
Commercial and industrial
|
$
|
141,475
|
|
|
$
|
164,891
|
|
|
$
|
183,371
|
|
|
$
|
205,902
|
|
|
$
|
193,439
|
|
Commercial real estate — owner occupied
|
15,800
|
|
|
17,925
|
|
|
9,544
|
|
|
6,995
|
|
|
9,635
|
|
|||||
Commercial and business lending
|
157,275
|
|
|
182,816
|
|
|
192,915
|
|
|
212,897
|
|
|
203,074
|
|
|||||
Commercial real estate — investor
|
7,206
|
|
|
8,273
|
|
|
18,051
|
|
|
8,028
|
|
|
11,528
|
|
|||||
Real estate construction
|
1,717
|
|
|
1,247
|
|
|
844
|
|
|
864
|
|
|
957
|
|
|||||
Commercial real estate lending
|
8,923
|
|
|
9,520
|
|
|
18,895
|
|
|
8,892
|
|
|
12,485
|
|
|||||
Total commercial
|
166,198
|
|
|
192,336
|
|
|
211,810
|
|
|
221,789
|
|
|
215,559
|
|
|||||
Residential mortgage
|
51,975
|
|
|
54,183
|
|
|
50,236
|
|
|
53,475
|
|
|
52,300
|
|
|||||
Home equity
|
13,482
|
|
|
13,212
|
|
|
13,001
|
|
|
14,347
|
|
|
14,363
|
|
|||||
Other consumer
|
233
|
|
|
260
|
|
|
256
|
|
|
300
|
|
|
380
|
|
|||||
Total consumer
|
65,690
|
|
|
67,655
|
|
|
63,493
|
|
|
68,122
|
|
|
67,043
|
|
|||||
Total nonaccrual loans
|
231,888
|
|
|
259,991
|
|
|
275,303
|
|
|
289,911
|
|
|
282,602
|
|
|||||
Commercial real estate owned
|
4,825
|
|
|
5,599
|
|
|
7,176
|
|
|
9,758
|
|
|
7,473
|
|
|||||
Residential real estate owned
|
2,957
|
|
|
1,941
|
|
|
3,098
|
|
|
3,006
|
|
|
4,391
|
|
|||||
Bank properties real estate owned
|
—
|
|
|
—
|
|
|
—
|
|
|
1,735
|
|
|
1,805
|
|
|||||
Other real estate owned (“OREO”)
|
7,782
|
|
|
7,540
|
|
|
10,274
|
|
|
14,499
|
|
|
13,669
|
|
|||||
Other nonperforming assets
|
7,418
|
|
|
7,418
|
|
|
7,418
|
|
|
—
|
|
|
—
|
|
|||||
Total nonperforming assets (“NPAs”)
|
$
|
247,088
|
|
|
$
|
274,949
|
|
|
$
|
292,995
|
|
|
$
|
304,410
|
|
|
$
|
296,271
|
|
Accruing loans past due 90 days or more:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
248
|
|
|
$
|
258
|
|
|
$
|
236
|
|
|
$
|
254
|
|
|
$
|
248
|
|
Consumer
|
1,287
|
|
|
1,462
|
|
|
1,377
|
|
|
1,257
|
|
|
1,246
|
|
|||||
Total accruing loans past due 90 days or more
|
$
|
1,535
|
|
|
$
|
1,720
|
|
|
$
|
1,613
|
|
|
$
|
1,511
|
|
|
$
|
1,494
|
|
Restructured loans (accruing):
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
50,634
|
|
|
$
|
51,274
|
|
|
$
|
53,022
|
|
|
$
|
53,410
|
|
|
$
|
57,251
|
|
Consumer
|
26,691
|
|
|
27,785
|
|
|
26,835
|
|
|
26,660
|
|
|
26,175
|
|
|||||
Total restructured loans (accruing)
|
$
|
77,325
|
|
|
$
|
79,059
|
|
|
$
|
79,857
|
|
|
$
|
80,070
|
|
|
$
|
83,426
|
|
Nonaccrual restructured loans (included in nonaccrual loans)
|
$
|
51,715
|
|
|
$
|
78,902
|
|
|
$
|
29,385
|
|
|
$
|
31,758
|
|
|
$
|
34,841
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans to total loans
|
1.12
|
%
|
|
1.29
|
%
|
|
1.37
|
%
|
|
1.46
|
%
|
|
1.43
|
%
|
|||||
NPAs to total loans plus OREO
|
1.19
|
%
|
|
1.36
|
%
|
|
1.46
|
%
|
|
1.53
|
%
|
|
1.49
|
%
|
|||||
NPAs to total assets
|
0.83
|
%
|
|
0.94
|
%
|
|
1.01
|
%
|
|
1.04
|
%
|
|
1.02
|
%
|
|||||
Allowance for loan losses to nonaccrual loans
|
121.22
|
%
|
|
108.72
|
%
|
|
101.10
|
%
|
|
92.97
|
%
|
|
94.76
|
%
|
|
|
||||||||||||||||||
|
June 30,
2017 |
|
March 31,
2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
||||||||||
|
($ in Thousands)
|
||||||||||||||||||
Accruing loans 30-89 days past due:
|
|
|
|
||||||||||||||||
Commercial and industrial
|
$
|
1,255
|
|
|
$
|
1,675
|
|
|
$
|
1,413
|
|
|
$
|
950
|
|
|
$
|
2,124
|
|
Commercial real estate — owner occupied
|
1,284
|
|
|
970
|
|
|
1,384
|
|
|
869
|
|
|
193
|
|
|||||
Commercial and business lending
|
2,539
|
|
|
2,645
|
|
|
2,797
|
|
|
1,819
|
|
|
2,317
|
|
|||||
Commercial real estate — investor
|
899
|
|
|
1,122
|
|
|
931
|
|
|
630
|
|
|
2,715
|
|
|||||
Real estate construction
|
135
|
|
|
431
|
|
|
369
|
|
|
402
|
|
|
524
|
|
|||||
Commercial real estate lending
|
1,034
|
|
|
1,553
|
|
|
1,300
|
|
|
1,032
|
|
|
3,239
|
|
|||||
Total commercial
|
3,573
|
|
|
4,198
|
|
|
4,097
|
|
|
2,851
|
|
|
5,556
|
|
|||||
Residential mortgage
|
9,165
|
|
|
7,243
|
|
|
8,142
|
|
|
6,697
|
|
|
7,382
|
|
|||||
Home equity
|
5,924
|
|
|
4,512
|
|
|
5,849
|
|
|
5,473
|
|
|
7,730
|
|
|||||
Other consumer
|
1,746
|
|
|
1,658
|
|
|
3,189
|
|
|
2,046
|
|
|
1,895
|
|
|||||
Total consumer
|
16,835
|
|
|
13,413
|
|
|
17,180
|
|
|
14,216
|
|
|
17,007
|
|
|||||
Total accruing loans 30-89 days past due
|
$
|
20,408
|
|
|
$
|
17,611
|
|
|
$
|
21,277
|
|
|
$
|
17,067
|
|
|
$
|
22,563
|
|
Potential problem loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
142,607
|
|
|
$
|
218,930
|
|
|
$
|
227,196
|
|
|
$
|
351,290
|
|
|
$
|
379,818
|
|
Commercial real estate — owner occupied
|
60,724
|
|
|
58,994
|
|
|
64,524
|
|
|
47,387
|
|
|
45,671
|
|
|||||
Commercial and business lending
|
203,331
|
|
|
277,924
|
|
|
291,720
|
|
|
398,677
|
|
|
425,489
|
|
|||||
Commercial real estate — investor
|
48,569
|
|
|
49,217
|
|
|
51,228
|
|
|
36,765
|
|
|
25,081
|
|
|||||
Real estate construction
|
8,901
|
|
|
10,141
|
|
|
2,465
|
|
|
1,929
|
|
|
2,117
|
|
|||||
Commercial real estate lending
|
57,470
|
|
|
59,358
|
|
|
53,693
|
|
|
38,694
|
|
|
27,198
|
|
|||||
Total commercial
|
260,801
|
|
|
337,282
|
|
|
345,413
|
|
|
437,371
|
|
|
452,687
|
|
|||||
Residential mortgage
|
1,576
|
|
|
2,155
|
|
|
5,615
|
|
|
3,226
|
|
|
3,953
|
|
|||||
Home equity
|
208
|
|
|
220
|
|
|
114
|
|
|
78
|
|
|
94
|
|
|||||
Total consumer
|
1,784
|
|
|
2,375
|
|
|
5,729
|
|
|
3,304
|
|
|
4,047
|
|
|||||
Total potential problem loans
|
$
|
262,585
|
|
|
$
|
339,657
|
|
|
$
|
351,142
|
|
|
$
|
440,675
|
|
|
$
|
456,734
|
|
|
YTD
|
|
|
|
|
|
|||||||||||||||
|
2017
|
2016
|
June 30,
2017 |
March 31,
2017 |
December 31,
2016 |
September 30,
2016 |
June 30,
2016 |
||||||||||||||
|
($ in Thousands)
|
||||||||||||||||||||
Allowance for Loan Losses:
|
|
|
|
|
|
|
|
||||||||||||||
Balance at beginning of period
|
$
|
278,335
|
|
$
|
274,264
|
|
$
|
282,672
|
|
$
|
278,335
|
|
$
|
269,540
|
|
$
|
267,780
|
|
$
|
277,370
|
|
Provision for loan losses
|
21,000
|
|
31,000
|
|
11,000
|
|
10,000
|
|
18,000
|
|
20,000
|
|
11,000
|
|
|||||||
Charge offs
|
(27,230
|
)
|
(45,866
|
)
|
(15,376
|
)
|
(11,854
|
)
|
(11,609
|
)
|
(28,964
|
)
|
(24,621
|
)
|
|||||||
Recoveries
|
8,996
|
|
8,382
|
|
2,805
|
|
6,191
|
|
2,404
|
|
10,724
|
|
4,031
|
|
|||||||
Net charge offs
|
(18,234
|
)
|
(37,484
|
)
|
(12,571
|
)
|
(5,663
|
)
|
(9,205
|
)
|
(18,240
|
)
|
(20,590
|
)
|
|||||||
Balance at end of period
|
$
|
281,101
|
|
$
|
267,780
|
|
$
|
281,101
|
|
$
|
282,672
|
|
$
|
278,335
|
|
$
|
269,540
|
|
$
|
267,780
|
|
Allowance for Unfunded Commitments:
|
|
|
|
|
|
|
|
||||||||||||||
Balance at beginning of period
|
$
|
25,400
|
|
$
|
24,400
|
|
$
|
24,400
|
|
$
|
25,400
|
|
$
|
28,400
|
|
$
|
27,400
|
|
$
|
24,400
|
|
Provision for unfunded commitments
|
—
|
|
3,000
|
|
1,000
|
|
(1,000
|
)
|
(3,000
|
)
|
1,000
|
|
3,000
|
|
|||||||
Balance at end of period
|
$
|
25,400
|
|
$
|
27,400
|
|
$
|
25,400
|
|
$
|
24,400
|
|
$
|
25,400
|
|
$
|
28,400
|
|
$
|
27,400
|
|
Allowance for credit losses
(a)
|
$
|
306,501
|
|
$
|
295,180
|
|
$
|
306,501
|
|
$
|
307,072
|
|
$
|
303,735
|
|
$
|
297,940
|
|
$
|
295,180
|
|
Provision for credit losses
(b)
|
$
|
21,000
|
|
$
|
34,000
|
|
$
|
12,000
|
|
$
|
9,000
|
|
$
|
15,000
|
|
$
|
21,000
|
|
$
|
14,000
|
|
Net loan (charge offs) recoveries:
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
(15,414
|
)
|
$
|
(33,500
|
)
|
$
|
(11,046
|
)
|
$
|
(4,368
|
)
|
$
|
(6,566
|
)
|
$
|
(16,407
|
)
|
$
|
(18,564
|
)
|
Commercial real estate — owner occupied
|
62
|
|
(63
|
)
|
43
|
|
19
|
|
(221
|
)
|
(154
|
)
|
(20
|
)
|
|||||||
Commercial and business lending
|
(15,352
|
)
|
(33,563
|
)
|
(11,003
|
)
|
(4,349
|
)
|
(6,787
|
)
|
(16,561
|
)
|
(18,584
|
)
|
|||||||
Commercial real estate — investor
|
(640
|
)
|
679
|
|
(126
|
)
|
(514
|
)
|
5
|
|
(564
|
)
|
(560
|
)
|
|||||||
Real estate construction
|
(15
|
)
|
(247
|
)
|
(26
|
)
|
11
|
|
(86
|
)
|
(22
|
)
|
(219
|
)
|
|||||||
Commercial real estate lending
|
(655
|
)
|
432
|
|
(152
|
)
|
(503
|
)
|
(81
|
)
|
(586
|
)
|
(779
|
)
|
|||||||
Total commercial
|
(16,007
|
)
|
(33,131
|
)
|
(11,155
|
)
|
(4,852
|
)
|
(6,868
|
)
|
(17,147
|
)
|
(19,363
|
)
|
|||||||
Residential mortgage
|
(692
|
)
|
(1,989
|
)
|
(564
|
)
|
(128
|
)
|
(1,048
|
)
|
(540
|
)
|
(757
|
)
|
|||||||
Home equity
|
227
|
|
(829
|
)
|
54
|
|
173
|
|
(491
|
)
|
125
|
|
317
|
|
|||||||
Other consumer
|
(1,762
|
)
|
(1,535
|
)
|
(906
|
)
|
(856
|
)
|
(798
|
)
|
(678
|
)
|
(787
|
)
|
|||||||
Total consumer
|
(2,227
|
)
|
(4,353
|
)
|
(1,416
|
)
|
(811
|
)
|
(2,337
|
)
|
(1,093
|
)
|
(1,227
|
)
|
|||||||
Total net charge offs
|
$
|
(18,234
|
)
|
$
|
(37,484
|
)
|
$
|
(12,571
|
)
|
$
|
(5,663
|
)
|
$
|
(9,205
|
)
|
$
|
(18,240
|
)
|
$
|
(20,590
|
)
|
Ratios:
|
|
|
|
|
|
|
|
||||||||||||||
Allowance for loan losses to total loans
|
1.35
|
%
|
1.35
|
%
|
1.35
|
%
|
1.40
|
%
|
1.39
|
%
|
1.36
|
%
|
1.35
|
%
|
|||||||
Allowance for loan losses to net charge offs (Annualized)
|
7.6x
|
|
3.6x
|
|
5.6x
|
|
12.3x
|
|
7.6x
|
|
3.7x
|
|
3.2x
|
|
(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.
|
|
YTD
|
|
|
|
|
|
||||||||
(in basis points)
|
2017
|
2016
|
June 30,
2017 |
March 31,
2017 |
December 31,
2016 |
September 30,
2016 |
June 30,
2016 |
|||||||
|
|
|||||||||||||
Net loan (charge offs) recoveries:
|
|
|
|
|
|
|
|
|||||||
Commercial and industrial
|
(49
|
)
|
(106
|
)
|
(69
|
)
|
(28
|
)
|
(40
|
)
|
(98
|
)
|
(114
|
)
|
Commercial real estate — owner occupied
|
1
|
|
(1
|
)
|
2
|
|
1
|
|
(10
|
)
|
(7
|
)
|
(1
|
)
|
Commercial and business lending
|
(43
|
)
|
(92
|
)
|
(60
|
)
|
(24
|
)
|
(36
|
)
|
(87
|
)
|
(100
|
)
|
Commercial real estate — investor
|
(4
|
)
|
4
|
|
(2
|
)
|
(6
|
)
|
N/M
|
|
(6
|
)
|
(7
|
)
|
Real estate construction
|
N/M
|
|
(4
|
)
|
(1
|
)
|
N/M
|
|
(3
|
)
|
(1
|
)
|
(7
|
)
|
Commercial real estate lending
|
(3
|
)
|
2
|
|
(1
|
)
|
(4
|
)
|
(1
|
)
|
(5
|
)
|
(7
|
)
|
Total commercial
|
(26
|
)
|
(56
|
)
|
(36
|
)
|
(16
|
)
|
(22
|
)
|
(55
|
)
|
(64
|
)
|
Residential mortgage
|
(2
|
)
|
(7
|
)
|
(3
|
)
|
(1
|
)
|
(7
|
)
|
(3
|
)
|
(5
|
)
|
Home equity
|
5
|
|
(17
|
)
|
2
|
|
8
|
|
(21
|
)
|
5
|
|
13
|
|
Other consumer
|
(94
|
)
|
(75
|
)
|
(98
|
)
|
(90
|
)
|
(80
|
)
|
(67
|
)
|
(78
|
)
|
Total consumer
|
(6
|
)
|
(12
|
)
|
(7
|
)
|
(4
|
)
|
(12
|
)
|
(6
|
)
|
(7
|
)
|
Total net charge offs
|
(18
|
)
|
(39
|
)
|
(25
|
)
|
(11
|
)
|
(18
|
)
|
(36
|
)
|
(42
|
)
|
(a)
|
Annualized ratio of net charge offs to average loans by loan type.
|
•
|
Total loans increased
$728 million
(
4%
) during the first half of
2017
, including a
$725 million
(
9%
) increase in total consumer. Compared to
June 30, 2016
, total loans increased
$968 million
(
5%
), including a
$975 million
(
13%
) increase in total consumer and a
$200 million
(
4%
) increase in commercial real estate lending, which was partially offset by a
$207 million
(
3%
) decrease 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
decreased
$43 million
during the first half of
2017
and
decreased
$51 million
from
June 30, 2016
, primarily due to the migration of general commercial related credits and oil and gas related credits, respectively. See also
Note 7 Loans
, of the notes to consolidated financial statements and section
Nonperforming Assets
for additional disclosures on the changes in asset quality.
|
•
|
Potential problem loans
decreased
$89 million
from
December 31, 2016
and
decreased
$194 million
from
June 30, 2016
, primarily due to the migration of general commercial related credits and oil and gas related credits, respectively. See
Table 9
, for additional information on the changes in potential problem loans.
|
•
|
Net charge offs
decreased
$19 million
from the first half of
2016
, primarily due to the charge off of oil and gas credits. See
Table 10
and
Table 11
for additional information regarding the activity in the allowance for loan losses.
|
•
|
The allowance for loan losses attributable to oil and gas related credits (included within the commercial and industrial allowance for loan losses) was
$33 million
at
June 30, 2017
, compared to
$38 million
at
December 31, 2016
and
$42 million
at
June 30, 2016
. See also Oil and gas lending within the Credit Risk section for additional disclosure.
|
($ in Thousands)
|
June 30, 2017
|
|
March 31, 2017
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|||||||||||||||||||||||||
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|||||||||||||||
Noninterest-bearing demand
|
$
|
5,038,162
|
|
|
23
|
%
|
|
$
|
5,338,212
|
|
|
25
|
%
|
|
$
|
5,392,208
|
|
|
25
|
%
|
|
$
|
5,337,677
|
|
|
24
|
%
|
|
$
|
5,039,336
|
|
|
25
|
%
|
Savings
|
1,552,820
|
|
|
7
|
%
|
|
1,530,155
|
|
|
7
|
%
|
|
1,431,494
|
|
|
7
|
%
|
|
1,441,187
|
|
|
7
|
%
|
|
1,451,801
|
|
|
7
|
%
|
|||||
Interest-bearing demand
|
3,858,739
|
|
|
18
|
%
|
|
4,736,236
|
|
|
22
|
%
|
|
4,687,656
|
|
|
21
|
%
|
|
4,548,390
|
|
|
21
|
%
|
|
3,789,138
|
|
|
19
|
%
|
|||||
Money market
|
9,228,129
|
|
|
43
|
%
|
|
8,608,523
|
|
|
39
|
%
|
|
8,770,963
|
|
|
40
|
%
|
|
8,894,357
|
|
|
41
|
%
|
|
8,448,543
|
|
|
42
|
%
|
|||||
Brokered CDs
|
131,184
|
|
|
1
|
%
|
|
54,993
|
|
|
—
|
%
|
|
52,725
|
|
|
—
|
%
|
|
44,373
|
|
|
—
|
%
|
|
46,268
|
|
|
—
|
%
|
|||||
Other time
|
1,809,146
|
|
|
8
|
%
|
|
1,559,916
|
|
|
7
|
%
|
|
1,553,402
|
|
|
7
|
%
|
|
1,481,728
|
|
|
7
|
%
|
|
1,517,764
|
|
|
7
|
%
|
|||||
Total deposits
|
$
|
21,618,180
|
|
|
100
|
%
|
|
$
|
21,828,035
|
|
|
100
|
%
|
|
$
|
21,888,448
|
|
|
100
|
%
|
|
$
|
21,747,712
|
|
|
100
|
%
|
|
$
|
20,292,850
|
|
|
100
|
%
|
Customer funding
(a)
|
262,318
|
|
|
|
|
326,823
|
|
|
|
|
300,197
|
|
|
|
|
477,607
|
|
|
|
|
464,880
|
|
|
|
||||||||||
Total deposits and customer funding
|
$
|
21,880,498
|
|
|
|
|
$
|
22,154,858
|
|
|
|
|
$
|
22,188,645
|
|
|
|
|
$
|
22,225,319
|
|
|
|
|
$
|
20,757,730
|
|
|
|
|||||
Network transaction deposits
(b)
|
$
|
3,220,956
|
|
|
|
|
$
|
3,417,380
|
|
|
|
|
$
|
3,895,467
|
|
|
|
|
$
|
3,730,513
|
|
|
|
|
$
|
3,141,214
|
|
|
|
|||||
Total deposits and customer funding, excluding Brokered CDs and network transaction deposits
|
$
|
18,528,358
|
|
|
|
|
$
|
18,682,485
|
|
|
|
|
$
|
18,240,453
|
|
|
|
|
$
|
18,450,433
|
|
|
|
|
$
|
17,570,248
|
|
|
|
|||||
Time deposits of more than $250,000
|
$
|
477,043
|
|
|
|
|
$
|
244,641
|
|
|
|
|
$
|
234,537
|
|
|
|
|
$
|
149,214
|
|
|
|
|
$
|
151,133
|
|
|
|
|||||
(a) Repurchase sweep agreements with customers from deposit accounts.
(b) Included above in interest-bearing demand and money market.
|
•
|
Deposits are the Corporation’s largest source of funds.
|
•
|
Total deposits
decreased
$270 million
(
1%
) from
December 31, 2016
, and
increased
$1.3 billion
(
7%
) from
June 30, 2016
, primarily in money market deposits.
|
•
|
Non-maturity deposit accounts, comprised of savings, money market, and demand (both interest and noninterest-bearing demand) accounts accounted for
91%
of our total deposits at
June 30, 2017
.
|
•
|
Included in the above amounts were
$3.2 billion
of network deposits, primarily sourced from other financial institutions and intermediaries. These represented
15%
of our total deposits at
June 30, 2017
.
|
•
|
Other time deposits increased
$256 million
(
16%
) from
December 31, 2016
. This was primarily due to an increase to CDs issued to Public Entities effectively extending out the maturity of the deposits in anticipation of higher short term borrowing rates.
|
•
|
During the second quarter, the Corporation experiences seasonal deposit outflows. Typically, this outflow is funded with short-term borrowings, FHLB advances, and / or network deposits.
|
•
|
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, 2017
, the Bank had $2.1 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, 2017
, the Bank had $2.1 billion available for discount window borrowings.
|
•
|
The Parent Company has a $200 million commercial paper program, of which, $98 million was outstanding as of
June 30, 2017
.
|
•
|
Dividends and service fees from subsidiaries, as well as the proceeds from issuance of capital are also funding sources for the Parent Company.
|
•
|
The Parent Company has filed a shelf registration statement with the SEC under which the Parent Company may, from time to time, offer shares of the Corporation’s common stock in connection with acquisitions of businesses, assets or securities of other companies.
|
•
|
The Parent Company also has filed a universal shelf registration statement with the SEC, under which the Parent Company may offer the following securities, either separately or in units: debt securities, preferred stock, depositary shares, common stock, and warrants.
|
•
|
The Bank may also issue institutional certificates of deposit, network transaction deposits, and brokered certificates of deposit.
|
|
Moody’s
|
|
S&P*
|
Associated Bank short-term deposits
|
P-1
|
|
-
|
Associated Bank long-term
|
A1
|
|
BBB+
|
Corporation short-term
|
P-2
|
|
-
|
Corporation long-term
|
Baa1
|
|
BBB
|
Outlook
|
Negative
|
|
Stable
|
* Standard and Poor's
|
|
|
|
|
Estimated % Change in Rate Sensitive Earnings at Risk (EAR) Over 12 Months
|
||||||||||
|
Dynamic Forecast
June 30, 2017 |
|
Static Forecast
June 30, 2017 |
|
Dynamic Forecast
December 31, 2016 |
|
Static Forecast
December 31, 2016 |
||||
Instantaneous Rate Change
|
|
|
|
|
|
|
|
||||
100 bp increase in interest rates
|
2.1
|
%
|
|
1.9
|
%
|
|
1.4
|
%
|
|
1.5
|
%
|
200 bp increase in interest rates
|
4.0
|
%
|
|
3.4
|
%
|
|
2.7
|
%
|
|
2.9
|
%
|
|
June 30, 2017
|
|
December 31, 2016
|
||
Instantaneous Rate Change
|
|
|
|
||
100 bp increase in interest rates
|
(3.3
|
)%
|
|
(2.9
|
)%
|
200 bp increase in interest rates
|
(7.0
|
)%
|
|
(6.0
|
)%
|
June 30, 2017
|
One Year
or Less
|
|
One to
Three Years
|
|
Three to
Five Years
|
|
Over
Five Years
|
|
Total
|
||||||||||
|
($ in Thousands)
|
||||||||||||||||||
Time deposits
|
$
|
1,285,501
|
|
|
$
|
495,148
|
|
|
$
|
156,413
|
|
|
$
|
3,268
|
|
|
$
|
1,940,330
|
|
Short-term funding
|
1,402,482
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,402,482
|
|
|||||
Long-term funding
|
365,000
|
|
|
1,999,285
|
|
|
150,000
|
|
|
747,835
|
|
|
3,262,120
|
|
|||||
Operating leases
|
9,711
|
|
|
18,780
|
|
|
15,469
|
|
|
20,940
|
|
|
64,900
|
|
|||||
Commitments to extend credit
|
4,077,097
|
|
|
2,755,762
|
|
|
1,432,240
|
|
|
155,598
|
|
|
8,420,697
|
|
|||||
Total
|
$
|
7,139,791
|
|
|
$
|
5,268,975
|
|
|
$
|
1,754,122
|
|
|
$
|
927,641
|
|
|
$
|
15,090,529
|
|
|
2Q17
|
|
1Q17
|
|
4Q16
|
|
3Q16
|
|
2Q16
|
||||||||||
|
($ in Thousands)
|
||||||||||||||||||
Risk-based Capital
(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Common equity Tier 1
|
$
|
2,130,238
|
|
|
$
|
2,085,309
|
|
|
$
|
2,032,587
|
|
|
$
|
1,983,770
|
|
|
$
|
1,940,704
|
|
Tier 1 capital
|
2,289,831
|
|
|
2,244,863
|
|
|
2,191,798
|
|
|
2,142,779
|
|
|
2,059,661
|
|
|||||
Total capital
|
2,808,049
|
|
|
2,757,310
|
|
|
2,706,760
|
|
|
2,656,648
|
|
|
2,573,941
|
|
|||||
Total risk-weighted assets
|
21,590,134
|
|
|
21,128,672
|
|
|
21,340,951
|
|
|
21,264,972
|
|
|
21,168,161
|
|
|||||
Common equity Tier 1 capital ratio
|
9.87
|
%
|
|
9.87
|
%
|
|
9.52
|
%
|
|
9.33
|
%
|
|
9.17
|
%
|
|||||
Tier 1 capital ratio
|
10.61
|
%
|
|
10.62
|
%
|
|
10.27
|
%
|
|
10.08
|
%
|
|
9.73
|
%
|
|||||
Total capital ratio
|
13.01
|
%
|
|
13.05
|
%
|
|
12.68
|
%
|
|
12.49
|
%
|
|
12.16
|
%
|
|||||
Tier 1 leverage ratio
|
8.09
|
%
|
|
8.05
|
%
|
|
7.83
|
%
|
|
7.64
|
%
|
|
7.43
|
%
|
|||||
Selected Equity and Performance Ratios
|
|
|
|
|
|
|
|
|
|
||||||||||
Total stockholders’ equity / assets
|
10.72
|
%
|
|
10.80
|
%
|
|
10.61
|
%
|
|
10.62
|
%
|
|
10.43
|
%
|
|||||
Dividend payout ratio
(2)
|
33.33
|
%
|
|
33.33
|
%
|
|
34.29
|
%
|
|
32.35
|
%
|
|
35.48
|
%
|
(1)
|
The Federal Reserve establishes regulatory capital requirements, including well-capitalized standards for the Corporation. The Corporation follows 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. See Table
18
for a reconciliation of common equity Tier 1 and average common equity Tier 1.
|
(2)
|
Ratio is based upon basic earnings per common share.
|
|
YTD
|
Quarter Ended
|
|||||||||||||||||||
|
June 30,
2017 |
June 30,
2016 |
June 30,
2017 |
March 31,
2017 |
December 31,
2016 |
September 30,
2016 |
June 30,
2016 |
||||||||||||||
|
($ in Thousands, except per share data)
|
||||||||||||||||||||
Selected Equity and Performance Ratios
(1) (2)
|
|
|
|
|
|
|
|
||||||||||||||
Tangible common equity / tangible assets
|
|
|
7.11
|
%
|
7.10
|
%
|
6.91
|
%
|
6.92
|
%
|
6.85
|
%
|
|||||||||
Return on average equity
|
7.33
|
%
|
6.18
|
%
|
7.35
|
%
|
7.31
|
%
|
7.07
|
%
|
7.03
|
%
|
6.19
|
%
|
|||||||
Return on average tangible common equity
|
11.06
|
%
|
9.38
|
%
|
11.06
|
%
|
11.07
|
%
|
10.78
|
%
|
10.68
|
%
|
10.04
|
%
|
|||||||
Return on average Common equity Tier 1
|
10.62
|
%
|
9.21
|
%
|
10.63
|
%
|
10.61
|
%
|
10.45
|
%
|
10.52
|
%
|
9.86
|
%
|
|||||||
Return on average assets
|
0.79
|
%
|
0.66
|
%
|
0.80
|
%
|
0.79
|
%
|
0.75
|
%
|
0.74
|
%
|
0.69
|
%
|
|||||||
Average stockholders' equity / average assets
|
10.85
|
%
|
10.62
|
%
|
10.84
|
%
|
10.85
|
%
|
10.67
|
%
|
10.52
|
%
|
11.13
|
%
|
|||||||
Tangible Common Equity and Common Equity Tier 1 Reconciliation
(1)(2)
|
|
|
|
|
|
|
|
||||||||||||||
Common equity
|
|
|
$
|
3,031,573
|
|
$
|
2,984,865
|
|
$
|
2,931,383
|
|
$
|
2,937,186
|
|
$
|
2,909,946
|
|
||||
Goodwill and other intangible assets, net
|
|
|
(986,536
|
)
|
(987,032
|
)
|
(987,328
|
)
|
(987,853
|
)
|
(988,378
|
)
|
|||||||||
Tangible common equity
|
|
|
$
|
2,045,037
|
|
$
|
1,997,833
|
|
$
|
1,944,055
|
|
$
|
1,949,333
|
|
$
|
1,921,568
|
|
||||
Less: Accumulated other comprehensive income / loss
|
|
|
53,470
|
|
56,344
|
|
54,679
|
|
1,254
|
|
(13,453
|
)
|
|||||||||
Less: Deferred tax assets/deferred tax liabilities, net
|
|
|
31,731
|
|
31,132
|
|
33,853
|
|
33,183
|
|
32,589
|
|
|||||||||
Common equity Tier 1
|
|
|
$
|
2,130,238
|
|
$
|
2,085,309
|
|
$
|
2,032,587
|
|
$
|
1,983,770
|
|
$
|
1,940,704
|
|
||||
Tangible Assets Reconciliation
(1)
|
|
|
|
|
|
|
|
||||||||||||||
Total assets
|
|
|
$
|
29,769,025
|
|
$
|
29,109,857
|
|
$
|
29,139,315
|
|
$
|
29,152,764
|
|
$
|
29,038,699
|
|
||||
Goodwill and other intangible assets, net
|
|
|
(986,536
|
)
|
(987,032
|
)
|
(987,328
|
)
|
(987,853
|
)
|
(988,378
|
)
|
|||||||||
Tangible assets
|
|
|
$
|
28,782,489
|
|
$
|
28,122,825
|
|
$
|
28,151,987
|
|
$
|
28,164,911
|
|
$
|
28,050,321
|
|
||||
Average Tangible Common Equity and Average Common Equity Tier 1 Reconciliation
(1) (2)
|
|
|
|
|
|
|
|
||||||||||||||
Common equity
|
$
|
2,984,451
|
|
$
|
2,859,077
|
|
$
|
3,005,209
|
|
$
|
2,963,462
|
|
$
|
2,924,831
|
|
$
|
2,910,691
|
|
$
|
2,868,772
|
|
Goodwill and other intangible assets, net
|
(986,980
|
)
|
(988,913
|
)
|
(986,826
|
)
|
(987,135
|
)
|
(987,640
|
)
|
(988,171
|
)
|
(988,699
|
)
|
|||||||
Tangible common equity
|
1,997,471
|
|
1,870,164
|
|
2,018,383
|
|
1,976,327
|
|
1,937,191
|
|
1,922,520
|
|
1,880,073
|
|
|||||||
Less: Accumulated other comprehensive income / loss
|
52,179
|
|
2,343
|
|
50,148
|
|
54,234
|
|
27,922
|
|
(2,616
|
)
|
1,365
|
|
|||||||
Less: Deferred tax assets/deferred tax liabilities, net
|
31,242
|
|
32,354
|
|
31,294
|
|
31,188
|
|
33,340
|
|
32,712
|
|
31,803
|
|
|||||||
Average common equity Tier 1
|
$
|
2,080,892
|
|
$
|
1,904,861
|
|
$
|
2,099,825
|
|
$
|
2,061,749
|
|
$
|
1,998,453
|
|
$
|
1,952,616
|
|
$
|
1,913,241
|
|
Efficiency Ratio Reconciliation
(3)
|
|
|
|
|
|
|
|
||||||||||||||
Federal Reserve efficiency ratio
|
66.54
|
%
|
69.18
|
%
|
66.69
|
%
|
66.39
|
%
|
65.35
|
%
|
64.40
|
%
|
69.34
|
%
|
|||||||
Fully tax-equivalent adjustment
|
(1.30
|
)%
|
(1.36
|
)%
|
(1.30
|
)%
|
(1.30
|
)%
|
(1.25
|
)%
|
(1.21
|
)%
|
(1.36
|
)%
|
|||||||
Other intangible amortization
|
(0.19
|
)%
|
(0.21
|
)%
|
(0.18
|
)%
|
(0.20
|
)%
|
(0.20
|
)%
|
(0.19
|
)%
|
(0.21
|
)%
|
|||||||
Fully tax-equivalent efficiency ratio
|
65.05
|
%
|
67.61
|
%
|
65.21
|
%
|
64.89
|
%
|
63.90
|
%
|
63.00
|
%
|
67.77
|
%
|
(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 Corporation follows 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.
|
Standard
|
|
Description
|
|
Date of adoption
|
|
Effect on financial statements
|
ASU 2017-07 Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost
|
|
The FASB issued the update to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost, including a requirement that employers disaggregate the service cost component from the other components of net benefit cost. In addition, the amendments provide explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. This amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Entities should apply the amendment retrospectively to each period presented and prospectively only for the capitalization component. Early adoption is permitted, but should be within the first interim period if interim financial statements are issued.
|
|
1st Quarter 2018
|
|
The Corporation is currently evaluating the impact on its results of operations, financial position, and liquidity.
|
Standard
|
|
Description
|
|
Date of adoption
|
|
Effect on financial statements
|
ASU 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment
|
|
The FASB issued an amendment to simplify the subsequent quantitative measurement of goodwill by eliminating step two from the goodwill impairment test. Instead, an entity will perform only step one of its quantitative goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity will still have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative step one impairment test is necessary. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Entities should apply the amendment prospectively. Early adoption is permitted, including in an interim period, for impairment tests performed after January 1, 2017. The Corporation has not had to perform a step one quantitative analysis since 2012, which concluded no impairment was necessary.
|
|
2nd Quarter 2020, consistent with the Corporation's annual impairment test in May of each year.
|
|
The Corporation is currently evaluating the impact on its results of operations, financial position, and liquidity.
|
ASU 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business
|
|
The FASB issued amendments to clarify the definition of a business in order to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets versus businesses. The new standard narrows the definition of a business by adding three principal clarifications: (1) If substantially all the fair value of the gross assets in the asset group is concentrated in either a single identifiable asset or group of similar identifiable assets the transaction does not involve a business (2) If the asset group does not include a minimum of an input and a substantive process, it does not represent a business (3) If the integrated set of activities (including its inputs and processes) does not create, or have the ability to create, goods or services to customers, investment income (e,g. dividends or interest) or other revenues, it is not a business. The overall intention is to provide consistency in applying the guidance, reduce the costs of application, and make the definition of a business more operable.
|
|
1st Quarter 2018
|
|
The Corporation is currently evaluating the impact on its results of operations, financial position, and liquidity.
|
ASU 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash
|
|
The FASB issued an amendment to improve GAAP by providing guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows, in order to reduce diversity in practice. The amendment requires that a statement of cash flow explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included in cash and cash equivalents when reconciling the beginning and end of period total amounts shown on the statement of cash flow. This amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Entities should apply the amendment retrospectively to each period presented. Early adoption is permitted, including in an interim period.
|
|
1st Quarter 2018
|
|
The Corporation is currently evaluating the impact on its results of operations, financial position, and liquidity.
|
ASU 2016-16 Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory
|
|
The FASB issued an amendment requiring an entity to recognize income tax consequences on an intra-entity transfer of an asset other than inventory at the time the transaction occurs. This amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Entities should apply the amendment by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. Early adoption is permitted for all entities in the first interim period if an entity issues interim financial statements.
|
|
1st Quarter 2018
|
|
No material impact expected on our results of operations, financial position, and liquidity.
|
ASU 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments
|
|
The FASB issued an amendment to provide clarification on where to classify cash flows involving certain cash receipts and cash payments. Under the new guidance, cash payments for debt prepayment or debt extinguishment costs should be classified as cash outflows for financing activities. The new guidance also details the specific classification of contingent consideration cash payments made after a business combination depending on the timing of payments. Lastly, cash proceeds received from corporate owned life insurance policies (including BOLI) should be classified as cash inflows from investing, while the cash payments for the premiums may be classified as cash outflows for investing, operating, or a combination of both. This amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Entities should apply the amendment retrospectively to each period presented. Early adoption is permitted, including in an interim period; however, all of the amendments must be adopted in the same period.
|
|
1st Quarter 2018
|
|
The Corporation is currently evaluating the impact on its results of operations, financial position, and liquidity.
|
ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
|
|
The FASB issued an amendment to replace the current incurred loss impairment methodology. Under the new guidance, entities will be required to measure expected credit losses by utilizing forward-looking information to assess an entity's allowance for credit losses. The guidance also requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. This amendment is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities should apply the amendment by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. Early adoption is permitted.
|
|
1st Quarter 2020
|
|
The Corporation is currently evaluating the impact on its results of operations, financial position, and liquidity.
|
Standard
|
|
Description
|
|
Date of adoption
|
|
Effect on financial statements
|
ASU 2016-02 Leases (Topic 842)
|
|
The FASB issued an amendment to provide transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This amendment will require lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and 2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. This amendment is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. Early adoption is permitted.
|
|
1st Quarter 2019
|
|
The Corporation is currently evaluating the impact on its results of operations, financial position, and liquidity.
|
ASU 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities
|
|
The FASB issued an amendment to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This amendment supersedes the guidance to classify equity securities with readily determinable fair values into different categories, requires equity securities to be measured at fair value with changes in the fair value recognized through net income, and simplifies the impairment assessment of equity investments without readily determinable fair values. The amendment requires public business entities that are required to disclose the fair value of financial instruments measured at amortized cost on the balance sheet to measure that fair value using the exit price notion. The amendment requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option. The amendment requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or in the accompanying notes to the financial statements. The amendment reduces diversity in current practice by clarifying that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. This amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Entities are required to apply the amendment by means of a cumulative-effect adjustment as of the beginning of the fiscal year of adoption, with the exception of the amendment related to equity securities without readily determinable fair values, which should be applied prospectively to equity investments that exist as of the date of adoption.
|
|
1st Quarter 2018
|
|
The Corporation is currently evaluating the impact on its results of operations, financial position, and liquidity.
|
ASU 2014-09 Revenue from Contracts with Customers (Topic 606)
|
|
The FASB issued an amendment to clarify the principles for recognizing revenue and to develop a common revenue standard. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In applying the revenue model to contracts within its scope, an entity should apply the following steps: (1) Identify the contract(s) with a customer, (2) Identify the performance obligations in the contract, (3) Determine the transaction price, (4) Allocate the transaction price to the performance obligations in the contract, and (5) Recognize revenue when (or as) the entity satisfies a performance obligation. The standard applies to all contracts with customers except those that are within the scope of other topics in the FASB Codification. The standard also requires significantly expanded disclosures about revenue recognition. The FASB continues to release new accounting guidance related to the adoption of this standard, which could impact the Corporation's preliminary materiality analysis and may change the conclusions reached as to the application of this new guidance. The amendment was originally to be effective for annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods); however, in July 2015, the FASB approved a one year deferral of the effective date to December 31, 2017. Early application is not permitted.
|
|
1st Quarter 2018
|
|
More than 69% of the Corporation’s revenue comes from net interest income, and is explicitly out of scope of the guidance. The primary contracts in-scope of the guidance is expected to be service charges on deposit accounts, card-based and other nondeposit fees, trust service fees, brokerage and annuity commissions, and insurance commissions among others. The Corporation continues to evaluate noninterest income contracts pertaining to the guidance by analyzing contracts and current accounting practices to determine if a change is appropriate. This comprehensive review is expected to be completed in the third quarter of 2017. The Corporation's preliminary analysis suggests the adoption of this accounting standard is not expected to have a material impact on the Corporation's consolidated financial statements or accounting policies. The new standard is largely consistent with existing guidance and current practices applied by our businesses. The Corporation is also evaluating where expanded disclosures are necessary. We plan to adopt this guidance using the modified retrospective approach and are extensively into our implementation plan.
|
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
|
ITEM 6.
|
Exhibits
|
|
|
|
|
|
ASSOCIATED BANC-CORP
|
|
|
(Registrant)
|
|
|
|
Date: July 28, 2017
|
|
/s/ Philip B. Flynn
|
|
|
Philip B. Flynn
|
|
|
President and Chief Executive Officer
|
|
|
|
Date: July 28, 2017
|
|
/s/ Christopher J. Del Moral-Niles
|
|
|
Christopher J. Del Moral-Niles
|
|
|
Chief Financial Officer
|
|
|
|
Date: July 28, 2017
|
|
/s/ Tammy C. Stadler
|
|
|
Tammy C. Stadler
|
|
|
Principal Accounting Officer
|
1.
|
Amendments
.
|
3.
|
Dividend Equivalents
. Prior to settlement of the RSUs pursuant to Paragraph 8 below, the Company shall establish an account (a “
Dividend Equivalent Account
”) on its books for Grantee. Grantee’s Dividend Equivalent Account shall be credited with Dividend Equivalents based on the dividends paid or distributions made with respect to Shares. The amount of Dividend Equivalents credited to the Dividend Equivalent Account shall be determined by multiplying (a) by (b), where (a) is the total amount of dividends or distributions (as applicable) paid on a Share between the Grant Date and the date of settlement of the RSUs, and (b) is the number of RSUs vested on the Vesting Date. The Grantee’s Dividend Equivalent Account established pursuant to this Paragraph 3 shall be subject to the terms of this Agreement, including the vesting and settlement provisions of Paragraphs 5
|
|
|
|
Date: July 28, 2017
|
|
/s/ Philip B. Flynn
|
|
|
Philip B. Flynn
|
|
|
President and Chief Executive Officer
|
|
|
|
Date: July 28, 2017
|
|
/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, 2017
|
|
|
|
/s/ Christopher J. Del Moral-Niles
|
|
Christopher J. Del Moral-Niles
|
|
Chief Financial Officer
|
|
July 28, 2017
|