☑ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||||||||
For the fiscal year ended | December 31, 2019 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||||||||
For the transition period from to |
Wisconsin | 39-1098068 | |||||||||||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
|||||||||||||
433 Main Street | ||||||||||||||
Green Bay, | Wisconsin | 54301 | ||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
Common stock, par value $0.01 per share | ASB | The New York Stock Exchange | ||||||
Depositary Shrs, each representing 1/40th intrst in a shr of 6.125% Non-Cum. Perp Pref Stock, Srs C | ASB PrC | The New York Stock Exchange | ||||||
Depositary Shrs, each representing 1/40th intrst in a shr of 5.375% Non-Cum. Perp Pref Stock, Srs D | ASB PrD | The New York Stock Exchange | ||||||
Depositary Shrs, each representing 1/40th intrst in a shr of 5.875% Non-Cum. Perp Pref Stock, Srs E | ASB PrE | The New York Stock Exchange |
Large accelerated filer
|
☑ |
Accelerated filer
|
☐ | |||||||||||||||||
Non-accelerated filer
|
☐ |
Smaller reporting company
|
☐ | |||||||||||||||||
Emerging growth company
|
☐ |
Page | ||||||||
ASSOCIATED BANC-CORP | ||
Commonly Used Acronyms and Abbreviations | ||
The following listing provides a reference of common acronyms and abbreviations used throughout the document: |
2017 Plan | 2017 Incentive Compensation Plan | ||||
ABRC | Associated Benefits and Risk Consulting | ||||
ABS | Asset-Backed Securities | ||||
ACL | Allowance for Credit Losses | ||||
ADC | Acquisition, Development, or Construction | ||||
ALCO | Asset / Liability Committee | ||||
Anderson | Anderson Insurance and Investment Agency, Inc. | ||||
ASC | Accounting Standards Codification | ||||
Associated / Corporation / our / us / we | Associated Banc-Corp collectively with all of its subsidiaries and affiliates | ||||
Associated Bank / the Bank | Associated Bank, National Association | ||||
ASU | Accounting Standards Update | ||||
Bank Mutual | Bank Mutual Corporation | ||||
Basel III | International framework established by the Basel Committee on Banking Supervision for the regulation of capital and liquidity | ||||
BHC Act | Bank Holding Company Act of 1956, as amended | ||||
bp | basis point(s) | ||||
BSA | Bank Secrecy Act | ||||
CDs | Certificates of Deposit | ||||
CDIs | Core Deposit Intangibles | ||||
CECL | Current Expected Credit Losses | ||||
CET1 | Common Equity Tier 1 | ||||
CFPB | Consumer Financial Protection Bureau | ||||
CMBS | Commercial Mortgage-Backed Securities | ||||
CMOs | Collateralized Mortgage Obligations | ||||
CRA | Community Reinvestment Act | ||||
DIF | Deposit Insurance Fund | ||||
Diversified | Diversified Insurance Solutions | ||||
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act | ||||
DOL | Department of Labor | ||||
DTAs | Deferred Tax Assets | ||||
DTCC | Depository Trust & Clearing Corporation | ||||
EAR | Earnings at Risk | ||||
Economic Growth Act | Economic Growth, Regulatory Relief, and Consumer Protection Act | ||||
Exchange Act | Securities Exchange Act of 1934, as amended | ||||
FASB | Financial Accounting Standards Board | ||||
FCA | United Kingdom Financial Conduct Authority | ||||
FDIC | Federal Deposit Insurance Corporation | ||||
FDICIA | Federal Deposit Insurance Corporation Improvement Act | ||||
Federal Reserve Board / Federal Reserve / FRB | Board of Governors of the Federal Reserve System | ||||
FFELP | Federal Family Education Loan Program | ||||
FHLB | Federal Home Loan Bank | ||||
FHLMC | Federal Home Loan Mortgage Corporation | ||||
FICC | Fixed Income Clearing Corporation | ||||
FICO | Financing Corporation, established by the Competitive Equality Banking Act of 1987 |
FICO Score | Fair Isaac Corporation score, a broad-based risk score to aid in credit decisions | ||||
FinCEN | Financial Crimes Enforcement Network | ||||
FINRA | Financial Industry Regulatory Authority | ||||
First Staunton | First Staunton Bancshares, Incorporated | ||||
FNMA | Federal National Mortgage Association | ||||
FRBNY | Federal Reserve Bank of New York | ||||
FTP | Funds Transfer Pricing | ||||
GAAP | Generally Accepted Accounting Principles | ||||
GNMA | Government National Mortgage Association | ||||
GSE | Government-Sponsored Enterprise | ||||
Huntington | The Huntington National Bank, a subsidiary of Huntington Bancshares Incorporated | ||||
HVCRE | High Volatility Commercial Real Estate | ||||
IDIs | Insured Depository Institutions | ||||
LIBOR | London Interbank Offered Rate | ||||
LTV | Loan-to-Value | ||||
MBS | Mortgage-Backed Securities | ||||
MSA | Mortgage Servicing Asset | ||||
MSRs | Mortgage Servicing Rights | ||||
MVE | Market Value of Equity | ||||
Net Free Funds | Noninterest-bearing sources of funds | ||||
NII | Net Interest Income | ||||
NPAs | Nonperforming Assets | ||||
NYSE | New York Stock Exchange | ||||
OCC | Office of the Comptroller of the Currency | ||||
OCI | Other Comprehensive Income | ||||
OREO | Other Real Estate Owned | ||||
Parent Company | Associated Banc-Corp individually | ||||
Patriot Act | Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 | ||||
RAP | Retirement Account Plan - the Corporation's noncontributory defined benefit retirement plan | ||||
Repurchase Agreements | Securities sold under agreements to repurchase | ||||
RESPA | Real Estate Settlement Procedures Act | ||||
Restricted Stock Awards | Restricted common stock and restricted common stock units to certain key employees | ||||
Retirement Eligible Colleagues | Colleagues whose retirement meets the early retirement or normal retirement definitions under the 2017 Plan | ||||
S&P | Standard & Poor's | ||||
SARs | Suspicious Activity Reports | ||||
SEC | U.S. Securities and Exchange Commission | ||||
Securities Act | Securities Act of 1933, as amended | ||||
Series C Preferred Stock | The Corporation's 6.125% Non-Cumulative Perpetual Preferred Stock, Series C, liquidation preference $1,000 per share | ||||
Series D Preferred Stock | The Corporation's 5.375% Non-Cumulative Perpetual Preferred Stock, Series D, liquidation preference $1,000 per share | ||||
Series E Preferred Stock | The Corporation's 5.875% Non-Cumulative Perpetual Preferred Stock, Series E, liquidation preference $1,000 per share | ||||
SOFR | Secured Overnight Finance Rate | ||||
Tax Act | U.S. Tax Cuts and Jobs Act of 2017 | ||||
TILA | Truth in Lending Act | ||||
Warrants | Troubled Asset Relief Program ("TARP") warrants |
ITEM 1. | Business |
ITEM 1A. | Risk Factors |
ITEM 1B. | Unresolved Staff Comments |
ITEM 2. | Properties |
ITEM 3. | Legal Proceedings |
ITEM 4. | Mine Safety Disclosures |
ITEM 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||
Associated Banc-Corp | $ | 100.0 | $ | 102.8 | $ | 137.9 | $ | 144.7 | $ | 116.2 | $ | 133.5 | ||||||||
S&P 500 Index | $ | 100.0 | $ | 101.4 | $ | 113.3 | $ | 137.8 | $ | 131.9 | $ | 173.1 | ||||||||
S&P 400 Regional Banks Sub-Industry Index | $ | 100.0 | $ | 106.6 | $ | 141.0 | $ | 148.1 | $ | 117.1 | $ | 145.6 |
ITEM 6. | Selected Financial Data |
Years Ended December 31, | |||||||||||||||||||||||||||||
($ in Thousands, except per share data) | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||
Interest income | $ | 1,172,610 | $ | 1,154,137 | $ | 886,605 | $ | 791,568 | $ | 753,662 | |||||||||||||||||||
Interest expense | 336,936 | 274,557 | 145,385 | 84,295 | 77,384 | ||||||||||||||||||||||||
Net interest income | 835,674 | 879,580 | 741,220 | 707,273 | 676,278 | ||||||||||||||||||||||||
Provision for credit losses | 16,000 | — | 26,000 | 70,000 | 37,500 | ||||||||||||||||||||||||
Net interest income after provision for credit losses | 819,674 | 879,580 | 715,220 | 637,273 | 638,778 | ||||||||||||||||||||||||
Noninterest income | 380,824 | 355,568 | 332,680 | 352,883 | 329,357 | ||||||||||||||||||||||||
Noninterest expense | 793,988 | 821,799 | 709,133 | 702,560 | 698,347 | ||||||||||||||||||||||||
Income before income taxes | 406,509 | 413,349 | 338,767 | 287,596 | 269,788 | ||||||||||||||||||||||||
Income tax expense | 79,720 | 79,786 | 109,503 | 87,322 | 81,487 | ||||||||||||||||||||||||
Net income | 326,790 | 333,562 | 229,264 | 200,274 | 188,301 | ||||||||||||||||||||||||
Preferred stock dividends | 15,202 | 10,784 | 9,347 | 8,903 | 7,155 | ||||||||||||||||||||||||
Net income available to common equity | $ | 311,587 | $ | 322,779 | $ | 219,917 | $ | 191,371 | $ | 181,146 | |||||||||||||||||||
Earnings per common share | |||||||||||||||||||||||||||||
Basic | $ | 1.93 | $ | 1.92 | $ | 1.45 | $ | 1.27 | $ | 1.20 | |||||||||||||||||||
Diluted | 1.91 | 1.89 | 1.42 | 1.26 | 1.19 | ||||||||||||||||||||||||
Cash dividends per common share | 0.69 | 0.62 | 0.50 | 0.45 | 0.41 | ||||||||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||||||||
Basic | 160,534 | 167,345 | 150,877 | 148,769 | 149,350 | ||||||||||||||||||||||||
Diluted | 161,932 | 169,732 | 153,647 | 149,961 | 150,603 | ||||||||||||||||||||||||
Selected Financial Data | |||||||||||||||||||||||||||||
Year-End Balances | |||||||||||||||||||||||||||||
Loans | $ | 22,821,440 | $ | 22,940,429 | $ | 20,784,991 | $ | 20,054,716 | $ | 18,714,343 | |||||||||||||||||||
Allowance for loan losses | 201,371 | 238,023 | 265,880 | 278,335 | 274,264 | ||||||||||||||||||||||||
Investment securities | 5,482,759 | 6,689,021 | 6,326,299 | 5,953,762 | 6,135,644 | ||||||||||||||||||||||||
Total assets(a)
|
32,386,478 | 33,615,122 | 30,443,626 | 29,139,315 | 27,711,835 | ||||||||||||||||||||||||
Deposits | 23,779,064 | 24,897,393 | 22,785,962 | 21,888,448 | 21,007,665 | ||||||||||||||||||||||||
Short- and long-term funding, and FHLB advances | 4,195,423 | 4,527,056 | 4,073,732 | 3,853,830 | 3,510,580 | ||||||||||||||||||||||||
Stockholders’ equity | 3,922,124 | 3,780,888 | 3,237,443 | 3,091,312 | 2,937,246 | ||||||||||||||||||||||||
Book value per common share | 23.32 | 21.43 | 20.13 | 19.27 | 18.62 | ||||||||||||||||||||||||
Tangible book value per common share | 15.28 | 13.86 | 13.65 | 12.78 | 12.10 | ||||||||||||||||||||||||
Average Balances | |||||||||||||||||||||||||||||
Loans | $ | 23,122,797 | $ | 22,718,297 | $ | 20,592,383 | $ | 19,650,667 | $ | 18,252,264 | |||||||||||||||||||
Investment securities | 6,194,465 | 6,912,921 | 6,028,262 | 6,048,563 | 5,912,849 | ||||||||||||||||||||||||
Earning assets | 29,820,829 | 30,049,793 | 26,999,884 | 26,026,661 | 24,571,087 | ||||||||||||||||||||||||
Total assets(a)
|
33,046,604 | 33,007,859 | 29,467,324 | 28,506,112 | 27,019,216 | ||||||||||||||||||||||||
Deposits | 24,735,608 | 24,072,049 | 21,923,602 | 21,005,772 | 19,903,087 | ||||||||||||||||||||||||
Interest-bearing liabilities | 23,535,115 | 23,699,823 | 21,045,399 | 20,122,402 | 19,330,847 | ||||||||||||||||||||||||
Stockholders’ equity | 3,871,869 | 3,692,433 | 3,172,634 | 3,022,962 | 2,895,158 | ||||||||||||||||||||||||
Risk-based Capital(a)(b)
|
|||||||||||||||||||||||||||||
Total risk-weighted assets | $ | 24,296,382 | $ | 23,842,542 | $ | 21,504,495 | $ | 21,340,951 | $ | 19,929,963 | |||||||||||||||||||
Common equity Tier 1 | 2,480,698 | 2,449,721 | 2,171,508 | 2,032,587 | 1,897,944 | ||||||||||||||||||||||||
Common equity Tier 1 capital ratio | 10.21 | % | 10.27 | % | 10.10 | % | 9.52 | % | 9.52 | % | |||||||||||||||||||
Return on average common equity Tier 1 | 12.59 | % | 13.15 | % | 10.43 | % | 9.86 | % | 9.88 | % |
ITEM 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in Thousands) |
Average
Balance |
Interest
Income / Expense |
Average
Yield / Rate |
Average
Balance |
Interest
Income / Expense |
Average
Yield / Rate |
Average
Balance |
Interest
Income / Expense |
Average
Yield / Rate |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earning assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans(a)(b)(c)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and business lending | $ | 8,426,774 | $ | 385,072 | 4.57 | % | $ | 7,744,640 | $ | 349,266 | 4.51 | % | $ | 7,254,613 | $ | 265,796 | 3.66 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate lending | 5,150,464 | 255,582 | 4.96 | % | 5,433,361 | 273,937 | 5.04 | % | 4,952,605 | 192,838 | 3.89 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial | 13,577,238 | 640,655 | 4.72 | % | 13,178,001 | 623,203 | 4.73 | % | 12,207,218 | 458,634 | 3.76 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 8,311,914 | 282,134 | 3.39 | % | 8,289,432 | 281,814 | 3.40 | % | 7,105,486 | 229,210 | 3.23 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail | 1,233,646 | 76,939 | 6.24 | % | 1,250,863 | 73,605 | 5.88 | % | 1,279,679 | 64,892 | 5.07 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | 23,122,797 | 999,727 | 4.32 | % | 22,718,297 | 978,622 | 4.31 | % | 20,592,383 | 752,736 | 3.66 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxable | 4,284,991 | 100,304 | 2.34 | % | 5,366,825 | 119,741 | 2.23 | % | 4,861,597 | 96,909 | 1.99 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax-exempt(a)
|
1,909,474 | 71,956 | 3.77 | % | 1,546,096 | 56,426 | 3.65 | % | 1,166,665 | 50,455 | 4.32 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other short-term investments | 503,566 | 16,643 | 3.30 | % | 418,576 | 12,623 | 3.02 | % | 379,239 | 7,719 | 2.04 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments and other | 6,698,032 | 188,903 | 2.82 | % | 7,331,497 | 188,790 | 2.58 | % | 6,407,501 | 155,083 | 2.42 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total earning assets | $ | 29,820,829 | $ | 1,188,630 | 3.99 | % | $ | 30,049,793 | $ | 1,167,412 | 3.88 | % | $ | 26,999,884 | $ | 907,819 | 3.36 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Other assets, net(d)
|
3,225,775 | 2,958,066 | 2,467,441 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 33,046,604 | $ | 33,007,859 | $ | 29,467,324 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and stockholders' equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings | $ | 2,439,872 | $ | 7,086 | 0.29 | % | $ | 1,878,960 | $ | 1,435 | 0.08 | % | $ | 1,527,161 | $ | 816 | 0.05 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing demand | 5,080,857 | 56,742 | 1.12 | % | 4,767,873 | 44,911 | 0.94 | % | 3,953,014 | 20,344 | 0.51 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Money market | 7,005,265 | 74,467 | 1.06 | % | 7,260,692 | 54,573 | 0.75 | % | 6,321,603 | 22,991 | 0.36 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Network transaction deposits | 1,860,951 | 42,523 | 2.29 | % | 2,095,715 | 39,251 | 1.87 | % | 3,145,554 | 31,455 | 1.00 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Time deposits | 3,129,142 | 56,468 | 1.80 | % | 2,831,229 | 35,948 | 1.27 | % | 1,979,709 | 18,419 | 0.93 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 19,516,088 | 237,286 | 1.22 | % | 18,834,469 | 176,118 | 0.94 | % | 16,927,041 | 94,025 | 0.56 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 137,679 | 1,579 | 1.15 | % | 224,967 | 2,006 | 0.89 | % | 415,086 | 2,527 | 0.61 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | 32,123 | 149 | 0.46 | % | 56,076 | 186 | 0.33 | % | 91,797 | 293 | 0.32 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
FHLB advances | 3,106,279 | 69,816 | 2.25 | % | 3,971,797 | 73,668 | 1.85 | % | 3,114,545 | 30,364 | 0.97 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term funding | 742,946 | 28,106 | 3.78 | % | 612,513 | 22,579 | 3.69 | % | 496,930 | 18,176 | 3.66 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total short and long-term funding | 4,019,027 | 99,651 | 2.48 | % | 4,865,353 | 98,439 | 2.02 | % | 4,118,358 | 51,360 | 1.25 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 23,535,115 | $ | 336,936 | 1.43 | % | $ | 23,699,823 | $ | 274,557 | 1.16 | % | $ | 21,045,399 | $ | 145,385 | 0.69 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 5,219,520 | 5,237,580 | 4,996,561 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities(d)
|
420,100 | 378,024 | 252,731 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 3,871,869 | 3,692,433 | 3,172,634 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 33,046,604 | $ | 33,007,859 | $ | 29,467,324 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate spread | 2.56 | % | 2.72 | % | 2.67 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net free funds | 0.30 | % | 0.25 | % | 0.15 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fully tax-equivalent net interest income and net interest margin | $ | 851,693 | 2.86 | % | $ | 892,855 | 2.97 | % | $ | 762,434 | 2.82 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fully tax-equivalent adjustment | $ | 16,020 | $ | 13,275 | $ | 21,214 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 835,674 | $ | 879,580 | $ | 741,220 |
2019 Compared to 2018
Increase (Decrease) Due to |
2018 Compared to 2017
Increase (Decrease) Due to |
|||||||||||||||||||||||||||||||
($ in Thousands) | Volume | Rate | Net | Volume | Rate | Net | ||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||
Loans(b)
|
||||||||||||||||||||||||||||||||
Commercial and business lending | $ | 31,118 | $ | 4,689 | $ | 35,807 | $ | 18,904 | $ | 64,566 | $ | 83,470 | ||||||||||||||||||||
Commercial real estate lending | (14,090) | (4,264) | (18,355) | 20,086 | 61,014 | 81,100 | ||||||||||||||||||||||||||
Total commercial | 17,027 | 425 | 17,452 | 38,990 | 125,580 | 164,570 | ||||||||||||||||||||||||||
Residential mortgage | 764 | (444) | 320 | 39,747 | 12,856 | 52,603 | ||||||||||||||||||||||||||
Retail | (1,024) | 4,358 | 3,333 | (1,490) | 10,203 | 8,713 | ||||||||||||||||||||||||||
Total loans | 16,766 | 4,339 | 21,105 | 77,247 | 148,639 | 225,886 | ||||||||||||||||||||||||||
Investment securities | ||||||||||||||||||||||||||||||||
Taxable | (25,091) | 5,654 | (19,437) | 7,660 | 15,172 | 22,832 | ||||||||||||||||||||||||||
Tax-exempt(b)
|
13,641 | 1,889 | 15,530 | 14,678 | (8,708) | 5,970 | ||||||||||||||||||||||||||
Other short-term investments | 2,730 | 1,289 | 4,019 | 869 | 4,035 | 4,904 | ||||||||||||||||||||||||||
Investments and other | (8,720) | 8,833 | 112 | 23,207 | 10,499 | 33,707 | ||||||||||||||||||||||||||
Total earning assets | $ | 8,046 | $ | 13,172 | $ | 21,218 | $ | 100,454 | $ | 159,138 | $ | 259,593 | ||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||||
Savings | $ | 544 | $ | 5,107 | $ | 5,651 | $ | 216 | $ | 403 | $ | 619 | ||||||||||||||||||||
Interest-bearing demand | 3,091 | 8,740 | 11,831 | 4,886 | 19,680 | 24,566 | ||||||||||||||||||||||||||
Money market | (1,982) | 21,876 | 19,894 | 3,861 | 27,722 | 31,583 | ||||||||||||||||||||||||||
Network transaction deposits | (4,723) | 7,995 | 3,272 | (13,033) | 20,829 | 7,796 | ||||||||||||||||||||||||||
Time deposits | 3,839 | 16,681 | 20,520 | 9,660 | 7,869 | 17,529 | ||||||||||||||||||||||||||
Total interest-bearing deposits | 769 | 60,399 | 61,168 | 5,590 | 76,502 | 82,093 | ||||||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | (907) | 480 | (427) | (1,425) | 903 | (522) | ||||||||||||||||||||||||||
Commercial paper | (96) | 59 | (37) | (118) | 11 | (107) | ||||||||||||||||||||||||||
FHLB advances | (17,778) | 13,926 | (3,852) | 10,120 | 33,184 | 43,304 | ||||||||||||||||||||||||||
Long-term funding | 4,920 | 607 | 5,527 | 4,260 | 144 | 4,403 | ||||||||||||||||||||||||||
Total short and long-term funding | (13,859) | 15,071 | 1,212 | 12,837 | 34,242 | 47,079 | ||||||||||||||||||||||||||
Total interest-bearing liabilities | (13,091) | 75,470 | 62,380 | 18,427 | 110,744 | 129,172 | ||||||||||||||||||||||||||
Fully tax-equivalent net interest income | $ | 21,136 | $ | (62,298) | $ | (41,162) | $ | 82,027 | $ | 48,394 | $ | 130,421 |
Years Ended December 31, | Change From Prior Year | |||||||||||||||||||||||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 |
$ Change
2019 |
% Change
2019 |
$ Change
2018 |
% Change
2018 |
|||||||||||||||||||||||||||||||
Insurance commissions and fees | $ | 89,104 | $ | 89,511 | $ | 81,474 | $ | (407) | — | % | $ | 8,037 | 10 | % | ||||||||||||||||||||||||
Wealth management fees(a)
|
83,467 | 82,562 | 70,126 | 905 | 1 | % | 12,436 | 18 | % | |||||||||||||||||||||||||||||
Service charges and deposit account fees | 63,135 | 66,075 | 64,427 | (2,940) | (4) | % | 1,648 | 3 | % | |||||||||||||||||||||||||||||
Card-based fees | 39,755 | 39,656 | 34,834 | 99 | — | % | 4,822 | 14 | % | |||||||||||||||||||||||||||||
Other fee-based revenue | 18,942 | 17,818 | 17,854 | 1,124 | 6 | % | (36) | — | % | |||||||||||||||||||||||||||||
Total fee-based revenue | 294,402 | 295,622 | 268,715 | (1,220) | — | % | 26,907 | 10 | % | |||||||||||||||||||||||||||||
Capital markets, net | 19,862 | 20,120 | 19,642 | (258) | (1) | % | 478 | 2 | % | |||||||||||||||||||||||||||||
Mortgage banking income | 44,373 | 28,960 | 29,619 | 15,413 | 53 | % | (659) | (2) | % | |||||||||||||||||||||||||||||
Mortgage servicing rights expense | 12,494 | 9,049 | 10,259 | 3,445 | 38 | % | (1,210) | (12) | % | |||||||||||||||||||||||||||||
Mortgage banking, net | 31,878 | 19,911 | 19,360 | 11,967 | 60 | % | 551 | 3 | % | |||||||||||||||||||||||||||||
Bank and corporate owned life insurance | 14,845 | 13,951 | 16,250 | 894 | 6 | % | (2,299) | (14) | % | |||||||||||||||||||||||||||||
Other | 11,165 | 9,051 | 9,523 | 2,114 | 23 | % | (472) | (5) | % | |||||||||||||||||||||||||||||
Subtotal | 372,154 | 358,655 | 333,490 | 13,499 | 4 | % | 25,165 | 8 | % | |||||||||||||||||||||||||||||
Asset gains (losses), net (b)
|
2,713 | (1,103) | (1,244) | 3,816 | N/M | 141 | (11) | % | ||||||||||||||||||||||||||||||
Investment securities gains (losses), net | 5,957 | (1,985) | 434 | 7,942 | N/M | (2,419) | N/M | |||||||||||||||||||||||||||||||
Total noninterest income | $ | 380,824 | $ | 355,568 | $ | 332,680 | $ | 25,256 | 7 | % | $ | 22,888 | 7 | % | ||||||||||||||||||||||||
Mortgage loans originated for sale during period | $ | 1,090,792 | $ | 1,092,318 | $ | 715,357 | $ | (1,526) | — | % | $ | 376,961 | 53 | % | ||||||||||||||||||||||||
Mortgage loan settlements during period | $ | 1,317,077 | $ | 1,131,652 | $ | 819,950 | $ | 185,425 | 16 | % | $ | 311,702 | 38 | % | ||||||||||||||||||||||||
Assets under management, at market value(c)
|
$ | 12,104 | $ | 10,291 | $ | 10,555 | $ | 1,813 | 18 | % | $ | (265) | (3) | % |
Years Ended December 31, | Change From Prior Year | |||||||||||||||||||||||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 |
$ Change
2019 |
% Change
2019 |
$ Change
2018 |
% Change
2018 |
|||||||||||||||||||||||||||||||
Personnel | $ | 487,063 | $ | 482,676 | $ | 428,976 | $ | 4,387 | 1 | % | $ | 53,700 | 13 | % | ||||||||||||||||||||||||
Technology | 82,429 | 72,674 | 63,004 | 9,755 | 13 | % | 9,670 | 15 | % | |||||||||||||||||||||||||||||
Occupancy | 62,399 | 59,121 | 53,842 | 3,278 | 6 | % | 5,279 | 10 | % | |||||||||||||||||||||||||||||
Business development and advertising | 29,600 | 30,923 | 28,946 | (1,323) | (4) | % | 1,977 | 7 | % | |||||||||||||||||||||||||||||
Equipment | 23,550 | 23,243 | 21,201 | 307 | 1 | % | 2,042 | 10 | % | |||||||||||||||||||||||||||||
Legal and professional | 19,901 | 23,061 | 22,509 | (3,160) | (14) | % | 552 | 2 | % | |||||||||||||||||||||||||||||
Loan and foreclosure costs | 8,861 | 7,410 | 7,293 | 1,451 | 20 | % | 117 | 2 | % | |||||||||||||||||||||||||||||
FDIC assessment | 16,250 | 30,000 | 31,300 | (13,750) | (46) | % | (1,300) | (4) | % | |||||||||||||||||||||||||||||
Other intangible amortization | 9,948 | 8,159 | 1,959 | 1,789 | 22 | % | 6,200 | N/M | ||||||||||||||||||||||||||||||
Acquisition related costs(a)
|
7,320 | 29,002 | — | (21,682) | (75) | % | 29,002 | N/M | ||||||||||||||||||||||||||||||
Other | 46,666 | 55,530 | 50,102 | (8,864) | (16) | % | 5,428 | 11 | % | |||||||||||||||||||||||||||||
Total noninterest expense | $ | 793,988 | $ | 821,799 | $ | 709,133 | $ | (27,811) | (3) | % | $ | 112,666 | 16 | % | ||||||||||||||||||||||||
Personnel expense to total noninterest expense | 61 | % | 59 | % | 60 | % | ||||||||||||||||||||||||||||||||
Average full-time equivalent employees(b)
|
4,702 | 4,699 | 4,307 |
As of December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in Thousands) | Amount |
% of
Total |
Amount |
% of
Total |
Amount |
% of
Total |
Amount |
% of
Total |
Amount |
% of
Total |
|||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 7,354,594 | 32 | % | $ | 7,398,044 | 32 | % | $ | 6,399,693 | 31 | % | $ | 6,489,014 | 32 | % | $ | 6,190,683 | 33 | % | |||||||||||||||||||||||||||||||||||||||
Commercial real estate — owner occupied | 911,265 | 4 | % | 920,443 | 4 | % | 802,209 | 4 | % | 897,724 | 5 | % | 918,212 | 5 | % | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and business lending | 8,265,858 | 36 | % | 8,318,487 | 36 | % | 7,201,902 | 35 | % | 7,386,738 | 37 | % | 7,108,895 | 38 | % | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate — investor | 3,794,517 | 17 | % | 3,751,554 | 16 | % | 3,315,254 | 16 | % | 3,574,732 | 18 | % | 3,234,266 | 17 | % | ||||||||||||||||||||||||||||||||||||||||||||
Real estate construction | 1,420,900 | 6 | % | 1,335,031 | 6 | % | 1,451,684 | 7 | % | 1,432,497 | 7 | % | 1,162,145 | 6 | % | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate lending | 5,215,417 | 23 | % | 5,086,585 | 22 | % | 4,766,938 | 23 | % | 5,007,229 | 25 | % | 4,396,411 | 23 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total commercial | 13,481,275 | 59 | % | 13,405,072 | 58 | % | 11,968,840 | 58 | % | 12,393,967 | 62 | % | 11,505,306 | 61 | % | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 8,136,980 | 36 | % | 8,277,712 | 36 | % | 7,546,534 | 36 | % | 6,332,327 | 31 | % | 5,783,267 | 31 | % | ||||||||||||||||||||||||||||||||||||||||||||
Home equity | 852,025 | 4 | % | 894,473 | 4 | % | 883,804 | 4 | % | 934,443 | 5 | % | 1,005,802 | 6 | % | ||||||||||||||||||||||||||||||||||||||||||||
Other consumer | 351,159 | 2 | % | 363,171 | 2 | % | 385,813 | 2 | % | 393,979 | 2 | % | 419,968 | 2 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total consumer | 9,340,164 | 41 | % | 9,535,357 | 42 | % | 8,816,151 | 42 | % | 7,660,749 | 38 | % | 7,209,037 | 39 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total loans(a)(b)
|
$ | 22,821,440 | 100 | % | $ | 22,940,429 | 100 | % | $ | 20,784,991 | 100 | % | $ | 20,054,716 | 100 | % | $ | 18,714,343 | 100 | % | |||||||||||||||||||||||||||||||||||||||
Commercial real estate and real estate construction loan detail | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Farmland | $ | 2,844 | — | % | $ | 1,250 | — | % | $ | 1,399 | — | % | $ | 1,613 | — | % | $ | 7,135 | — | % | |||||||||||||||||||||||||||||||||||||||
Multi-family | 1,201,835 | 32 | % | 1,204,552 | 32 | % | 952,473 | 29 | % | 1,027,541 | 29 | % | 932,360 | 29 | % | ||||||||||||||||||||||||||||||||||||||||||||
Non-owner occupied | 2,589,838 | 68 | % | 2,545,751 | 68 | % | 2,361,382 | 71 | % | 2,545,578 | 71 | % | 2,294,771 | 71 | % | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate — investor | $ | 3,794,517 | 100 | % | $ | 3,751,554 | 100 | % | $ | 3,315,254 | 100 | % | $ | 3,574,732 | 100 | % | $ | 3,234,266 | 100 | % | |||||||||||||||||||||||||||||||||||||||
1-4 family construction | $ | 261,908 | 18 | % | $ | 289,558 | 22 | % | $ | 353,902 | 24 | % | $ | 358,398 | 25 | % | $ | 309,396 | 27 | % | |||||||||||||||||||||||||||||||||||||||
All other construction | 1,158,992 | 82 | % | 1,045,474 | 78 | % | 1,097,782 | 76 | % | 1,074,099 | 75 | % | 852,749 | 73 | % | ||||||||||||||||||||||||||||||||||||||||||||
Real estate construction | $ | 1,420,900 | 100 | % | $ | 1,335,031 | 100 | % | $ | 1,451,684 | 100 | % | $ | 1,432,497 | 100 | % | $ | 1,162,145 | 100 | % |
($ in Thousands) | December 31, 2019 | September 30, 2019 |
June 30
2019 |
March 31,
2019 |
||||||||||||||||
Residential mortgage - adjustable
|
$ | 5,322,407 | $ | 5,386,776 | $ | 5,542,303 | $ | 5,540,366 | ||||||||||||
Residential mortgage - fixed | 2,814,573 | 2,568,025 | 2,735,176 | 2,783,480 | ||||||||||||||||
Total residential mortgage | $ | 8,136,980 | $ | 7,954,801 | $ | 8,277,479 | $ | 8,323,846 | ||||||||||||
Total loans | $ | 22,821,440 | $ | 22,754,710 | $ | 23,249,967 | $ | 23,148,359 | ||||||||||||
% of adjustable rate residential mortgages to total loans | 23 | % | 24 | % | 24 | % | 24 | % | ||||||||||||
% of fixed rate residential mortgages to total loans | 12 | % | 11 | % | 12 | % | 12 | % |
December 31, 2019 | % of Total Loans | % of Total Commercial and Business Lending | ||||||
Manufacturing and Wholesale Trade | 8 | % | 21 | % | ||||
Power and Utilities | 7 | % | 19 | % | ||||
Real Estate | 5 | % | 14 | % |
Years Ended December 31, | |||||||||||||||||||||||||||||
($ in Millions) | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||
Total oil and gas related loans | $ | 484 | $ | 747 | $ | 600 | $ | 668 | $ | 752 | |||||||||||||||||||
Annual net charge offs | 44 | 17 | 25 | 59 | — | ||||||||||||||||||||||||
Oil and gas related allowance | 12 | 12 | 27 | 38 | 42 | ||||||||||||||||||||||||
Oil and gas related allowance ratio | 2.6 | % | 1.6 | % | 4.5 | % | 5.7 | % | 5.6 | % |
December 31, 2019 | % of Total Loans | % of Total Commercial Real Estate - Investor | ||||||
Multi-Family | 5 | % | 32 | % |
As of December 31, | |||||||||||||||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||
Nonperforming assets by type | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 46,312 | $ | 41,021 | $ | 112,786 | $ | 183,371 | $ | 93,575 | |||||||||||||||||||
Commercial real estate — owner occupied | 67 | 3,957 | 22,740 | 9,544 | 8,049 | ||||||||||||||||||||||||
Commercial and business lending | 46,380 | 44,978 | 135,526 | 192,915 | 101,624 | ||||||||||||||||||||||||
Commercial real estate — investor | 4,409 | 1,952 | 4,729 | 18,051 | 8,643 | ||||||||||||||||||||||||
Real estate construction | 493 | 979 | 974 | 844 | 940 | ||||||||||||||||||||||||
Commercial real estate lending | 4,902 | 2,931 | 5,703 | 18,895 | 9,583 | ||||||||||||||||||||||||
Total commercial | 51,282 | 47,909 | 141,229 | 211,810 | 111,207 | ||||||||||||||||||||||||
Residential mortgage | 57,844 | 67,574 | 53,632 | 50,236 | 51,482 | ||||||||||||||||||||||||
Home equity | 9,104 | 12,339 | 13,514 | 13,001 | 15,244 | ||||||||||||||||||||||||
Other consumer | 152 | 79 | 171 | 256 | 325 | ||||||||||||||||||||||||
Total consumer | 67,099 | 79,992 | 67,317 | 63,493 | 67,051 | ||||||||||||||||||||||||
Total nonaccrual loans(a)
|
118,380 | 127,901 | 208,546 | 275,303 | 178,258 | ||||||||||||||||||||||||
Commercial real estate owned | 3,530 | 4,047 | 6,735 | 7,176 | 7,942 | ||||||||||||||||||||||||
Residential real estate owned | 5,696 | 2,963 | 5,873 | 3,098 | 4,768 | ||||||||||||||||||||||||
Bank properties real estate owned | 11,874 | 4,974 | — | — | 1,859 | ||||||||||||||||||||||||
OREO | 21,101 | 11,984 | 12,608 | 10,274 | 14,569 | ||||||||||||||||||||||||
Other nonperforming assets | 6,004 | — | 7,418 | 7,418 | — | ||||||||||||||||||||||||
Total nonperforming assets | $ | 145,485 | $ | 139,885 | $ | 228,572 | $ | 292,995 | $ | 192,827 | |||||||||||||||||||
Accruing loans past due 90 days or more | |||||||||||||||||||||||||||||
Commercial | $ | 342 | $ | 311 | $ | 418 | $ | 236 | $ | 249 | |||||||||||||||||||
Consumer | 1,917 | 1,853 | 1,449 | 1,377 | 1,399 | ||||||||||||||||||||||||
Total accruing loans past due 90 days or more | $ | 2,259 | $ | 2,165 | $ | 1,867 | $ | 1,613 | $ | 1,648 | |||||||||||||||||||
Restructured loans (accruing) | |||||||||||||||||||||||||||||
Commercial | $ | 18,944 | $ | 28,668 | $ | 48,735 | $ | 53,022 | $ | 59,595 | |||||||||||||||||||
Consumer | 7,097 | 24,595 | 25,883 | 26,835 | 27,768 | ||||||||||||||||||||||||
Total restructured loans (accruing)(a)
|
$ | 26,041 | $ | 53,263 | $ | 74,618 | $ | 79,857 | $ | 87,363 | |||||||||||||||||||
Nonaccrual restructured loans (included in nonaccrual loans)(a)
|
$ | 22,494 | $ | 26,292 | $ | 23,486 | $ | 29,385 | $ | 37,684 | |||||||||||||||||||
Ratios at year end | |||||||||||||||||||||||||||||
Nonaccrual loans to total loans | 0.52 | % | 0.56 | % | 1.00 | % | 1.37 | % | 0.95 | % | |||||||||||||||||||
NPAs to total loans plus OREO | 0.64 | % | 0.61 | % | 1.10 | % | 1.46 | % | 1.03 | % | |||||||||||||||||||
NPAs to total assets | 0.45 | % | 0.42 | % | 0.75 | % | 1.01 | % | 0.70 | % | |||||||||||||||||||
Allowance for loan losses to nonaccrual loans | 170.10 | % | 186.10 | % | 127.49 | % | 101.10 | % | 153.86 | % |
Years Ended December 31, | ||||||||||||||||||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||
Accruing loans 30-89 days past due by type | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 821 | $ | 525 | $ | 271 | $ | 1,413 | $ | 1,011 | ||||||||||||||||||||||
Commercial real estate — owner occupied | 1,369 | 2,699 | 48 | 1,384 | 7,142 | |||||||||||||||||||||||||||
Commercial and business lending | 2,190 | 3,224 | 319 | 2,797 | 8,153 | |||||||||||||||||||||||||||
Commercial real estate — investor | 1,812 | 3,767 | 374 | 931 | 291 | |||||||||||||||||||||||||||
Real estate construction | 97 | 330 | 251 | 369 | 296 | |||||||||||||||||||||||||||
Commercial real estate lending | 1,909 | 4,097 | 625 | 1,300 | 587 | |||||||||||||||||||||||||||
Total commercial | 4,099 | 7,321 | 944 | 4,097 | 8,740 | |||||||||||||||||||||||||||
Residential mortgage | 9,274 | 9,706 | 9,552 | 8,142 | 4,930 | |||||||||||||||||||||||||||
Home equity | 5,647 | 6,049 | 6,825 | 5,849 | 7,919 | |||||||||||||||||||||||||||
Other consumer | 2,083 | 2,269 | 2,007 | 3,189 | 1,870 | |||||||||||||||||||||||||||
Total consumer | 17,005 | 18,024 | 18,384 | 17,180 | 14,719 | |||||||||||||||||||||||||||
Total accruing loans 30-89 days past due(a)
|
$ | 21,104 | $ | 25,345 | $ | 19,328 | $ | 21,277 | $ | 23,459 | ||||||||||||||||||||||
Potential problem loans by type | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 110,308 | $ | 116,578 | $ | 113,778 | $ | 227,196 | $ | 233,130 | ||||||||||||||||||||||
Commercial real estate — owner occupied | 19,889 | 55,964 | 41,997 | 64,524 | 35,706 | |||||||||||||||||||||||||||
Commercial and business lending | 130,197 | 172,542 | 155,775 | 291,720 | 268,836 | |||||||||||||||||||||||||||
Commercial real estate — investor | 29,449 | 67,481 | 19,291 | 51,228 | 25,944 | |||||||||||||||||||||||||||
Real estate construction | — | 3,834 | — | 2,465 | 3,919 | |||||||||||||||||||||||||||
Commercial real estate lending | 29,449 | 71,315 | 19,291 | 53,693 | 29,863 | |||||||||||||||||||||||||||
Total commercial | 159,646 | 243,856 | 175,066 | 345,413 | 298,699 | |||||||||||||||||||||||||||
Residential mortgage | 1,451 | 5,975 | 1,616 | 5,615 | 2,796 | |||||||||||||||||||||||||||
Home equity | — | 103 | 195 | 114 | 222 | |||||||||||||||||||||||||||
Total consumer | 1,451 | 6,078 | 1,811 | 5,729 | 3,018 | |||||||||||||||||||||||||||
Total potential problem loans | $ | 161,097 | $ | 249,935 | $ | 176,877 | $ | 351,142 | $ | 301,717 |
Years Ended December 31, | |||||||||||||||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||
Interest income in accordance with original terms | $ | 12,032 | $ | 10,606 | $ | 16,205 | $ | 16,811 | $ | 11,745 | |||||||||||||||||||
Interest income recognized | (5,015) | (5,500) | (9,339) | (10,228) | (8,716) | ||||||||||||||||||||||||
Reduction in interest income | $ | 7,016 | $ | 5,106 | $ | 6,866 | $ | 6,583 | $ | 3,029 |
Years Ended December 31, | |||||||||||||||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 238,023 | $ | 265,880 | $ | 278,335 | $ | 274,264 | $ | 266,302 | |||||||||||||||||||
Provision for loan losses | 18,500 | 2,500 | 27,000 | 69,000 | 38,000 | ||||||||||||||||||||||||
Loans charged off | |||||||||||||||||||||||||||||
Commercial and industrial | (63,315) | (30,837) | (44,533) | (71,016) | (27,687) | ||||||||||||||||||||||||
Commercial real estate — owner occupied | (222) | (1,363) | (344) | (512) | (2,645) | ||||||||||||||||||||||||
Commercial and business lending | (63,537) | (32,200) | (44,877) | (71,528) | (30,332) | ||||||||||||||||||||||||
Commercial real estate — investor | — | (7,914) | (991) | (1,504) | (4,645) | ||||||||||||||||||||||||
Real estate construction | (60) | (298) | (604) | (558) | (750) | ||||||||||||||||||||||||
Commercial real estate lending | (60) | (8,212) | (1,595) | (2,062) | (5,395) | ||||||||||||||||||||||||
Total commercial | (63,597) | (40,412) | (46,472) | (73,590) | (35,727) | ||||||||||||||||||||||||
Residential mortgage | (3,322) | (1,627) | (2,611) | (4,332) | (5,636) | ||||||||||||||||||||||||
Home equity | (1,846) | (3,236) | (2,724) | (4,686) | (7,048) | ||||||||||||||||||||||||
Other consumer | (5,548) | (5,261) | (4,439) | (3,831) | (3,869) | ||||||||||||||||||||||||
Total consumer | (10,716) | (10,124) | (9,774) | (12,849) | (16,553) | ||||||||||||||||||||||||
Total loans charged off | (74,313) | (50,536) | (56,246) | (86,439) | (52,280) | ||||||||||||||||||||||||
Recoveries of loans previously charged off | |||||||||||||||||||||||||||||
Commercial and industrial | 11,875 | 13,714 | 11,465 | 14,543 | 9,821 | ||||||||||||||||||||||||
Commercial real estate — owner occupied | 2,795 | 639 | 173 | 74 | 921 | ||||||||||||||||||||||||
Commercial and business lending | 14,670 | 14,353 | 11,638 | 14,617 | 10,742 | ||||||||||||||||||||||||
Commercial real estate — investor | 31 | 668 | 242 | 1,624 | 4,157 | ||||||||||||||||||||||||
Real estate construction | 302 | 446 | 74 | 203 | 2,268 | ||||||||||||||||||||||||
Commercial real estate lending | 333 | 1,114 | 316 | 1,827 | 6,425 | ||||||||||||||||||||||||
Total commercial | 15,003 | 15,467 | 11,954 | 16,444 | 17,167 | ||||||||||||||||||||||||
Residential mortgage | 692 | 1,271 | 927 | 755 | 1,077 | ||||||||||||||||||||||||
Home equity | 2,599 | 2,628 | 3,194 | 3,491 | 3,233 | ||||||||||||||||||||||||
Other consumer | 868 | 812 | 716 | 820 | 765 | ||||||||||||||||||||||||
Total consumer | 4,158 | 4,712 | 4,837 | 5,066 | 5,075 | ||||||||||||||||||||||||
Total recoveries | 19,161 | 20,179 | 16,791 | 21,510 | 22,242 | ||||||||||||||||||||||||
Net (charge offs) recoveries | (55,152) | (30,358) | (39,455) | (64,929) | (30,038) | ||||||||||||||||||||||||
Balance at end of period | $ | 201,371 | $ | 238,023 | $ | 265,880 | $ | 278,335 | $ | 274,264 | |||||||||||||||||||
Allowance for unfunded commitments | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 24,336 | $ | 24,400 | $ | 25,400 | $ | 24,400 | $ | 24,900 | |||||||||||||||||||
Provision for unfunded commitments | (2,500) | (2,500) | (1,000) | 1,000 | (500) | ||||||||||||||||||||||||
Amount recorded at acquisition | 70 | 2,436 | — | — | — | ||||||||||||||||||||||||
Balance at end of period | $ | 21,907 | $ | 24,336 | $ | 24,400 | $ | 25,400 | $ | 24,400 | |||||||||||||||||||
Allowance for credit losses(a)
|
$ | 223,278 | $ | 262,359 | $ | 290,280 | $ | 303,735 | $ | 298,664 | |||||||||||||||||||
Provision for credit losses(b)
|
$ | 16,000 | $ | — | $ | 26,000 | $ | 70,000 | $ | 37,500 |
Years Ended December 31, | |||||||||||||||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||
Net loan (charge offs) recoveries | |||||||||||||||||||||||||||||
Commercial and industrial | $ | (51,441) | $ | (17,123) | $ | (33,068) | $ | (56,473) | $ | (17,866) | |||||||||||||||||||
Commercial real estate — owner occupied | 2,573 | (724) | (171) | (438) | (1,724) | ||||||||||||||||||||||||
Commercial and business lending | (48,868) | (17,848) | (33,239) | (56,911) | (19,590) | ||||||||||||||||||||||||
Commercial real estate — investor | 31 | (7,246) | (749) | 120 | (488) | ||||||||||||||||||||||||
Real estate construction | 243 | 149 | (530) | (355) | 1,518 | ||||||||||||||||||||||||
Commercial real estate lending | 274 | (7,098) | (1,279) | (235) | 1,030 | ||||||||||||||||||||||||
Total commercial | (48,594) | (24,946) | (34,518) | (57,146) | (18,560) | ||||||||||||||||||||||||
Residential mortgage | (2,630) | (355) | (1,684) | (3,577) | (4,559) | ||||||||||||||||||||||||
Home equity | 753 | (608) | 470 | (1,195) | (3,815) | ||||||||||||||||||||||||
Other consumer | (4,681) | (4,448) | (3,723) | (3,011) | (3,104) | ||||||||||||||||||||||||
Total consumer | (6,558) | (5,412) | (4,937) | (7,783) | (11,478) | ||||||||||||||||||||||||
Total net (charge offs) recoveries | $ | (55,152) | $ | (30,358) | $ | (39,455) | $ | (64,929) | $ | (30,038) | |||||||||||||||||||
Ratios | |||||||||||||||||||||||||||||
Allowance for loan losses to total loans | 0.88 | % | 1.04 | % | 1.28 | % | 1.39 | % | 1.47 | % | |||||||||||||||||||
Allowance for loan losses to net charge offs (annualized) | 3.7x | 7.8x | 6.7x | 4.3x | 9.1x |
Years Ended December 31, | |||||||||||||||||||||||||||||
(In Basis Points) | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||
Net loan (charge offs) recoveries | |||||||||||||||||||||||||||||
Commercial and industrial | (68) | (25) | (52) | (87) | (29) | ||||||||||||||||||||||||
Commercial real estate — owner occupied | 28 | (9) | (2) | (5) | (18) | ||||||||||||||||||||||||
Commercial and business lending | (58) | (23) | (46) | (77) | (28) | ||||||||||||||||||||||||
Commercial real estate — investor | — | (18) | (2) | — | (2) | ||||||||||||||||||||||||
Real estate construction | 2 | 1 | (3) | (3) | 14 | ||||||||||||||||||||||||
Commercial real estate lending | 1 | (13) | (3) | — | 2 | ||||||||||||||||||||||||
Total commercial | (36) | (19) | (28) | (47) | (16) | ||||||||||||||||||||||||
Residential mortgage | (3) | — | (2) | (6) | (8) | ||||||||||||||||||||||||
Home equity | 9 | (6) | 5 | (12) | (37) | ||||||||||||||||||||||||
Other consumer | (132) | (119) | (99) | (74) | (72) | ||||||||||||||||||||||||
Total consumer | (7) | (6) | (6) | (10) | (16) | ||||||||||||||||||||||||
Total net (charge offs) recoveries | (24) | (13) | (19) | (33) | (16) |
At December 31, | |||||||||||||||||||||||||||||||||||
($ in Thousands) | 2019 | % of Total | 2018 | % of Total | 2017 | % of Total | |||||||||||||||||||||||||||||
Investment securities available for sale | |||||||||||||||||||||||||||||||||||
Amortized cost | |||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | — | — | % | $ | 1,000 | <1% | $ | 1,003 | <1% | |||||||||||||||||||||||||
Obligations of state and political subdivisions (municipal securities) | 529,908 | 16 | % | — | — | % | — | — | % | ||||||||||||||||||||||||||
Residential mortgage-related securities | |||||||||||||||||||||||||||||||||||
FNMA / FHLMC | 131,158 | 4 | % | 296,296 | 7 | % | 457,680 | 11 | % | ||||||||||||||||||||||||||
GNMA | 982,941 | 30 | % | 2,169,943 | 54 | % | 1,944,453 | 47 | % | ||||||||||||||||||||||||||
Private-label | — | — | % | 1,007 | <1% | 1,067 | <1% | ||||||||||||||||||||||||||||
Commercial mortgage-related securities | |||||||||||||||||||||||||||||||||||
FNMA / FHLMC | 19,929 | 1 | % | — | — | % | — | — | % | ||||||||||||||||||||||||||
GNMA | 1,314,836 | 40 | % | 1,273,309 | 32 | % | 1,547,173 | 38 | % | ||||||||||||||||||||||||||
FFELP asset-backed securities | 270,178 | 8 | % | 297,347 | 7 | % | 144,322 | 4 | % | ||||||||||||||||||||||||||
Other debt securities | 3,000 | <1 % | 3,000 | <1% | 3,200 | <1% | |||||||||||||||||||||||||||||
Equity securities(a)
|
— | — | % | — | — | % | 1,519 | <1% | |||||||||||||||||||||||||||
Total amortized cost | $ | 3,251,950 | 100 | % | $ | 4,041,902 | 100 | % | $ | 4,100,417 | 100 | % | |||||||||||||||||||||||
Fair value | |||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | — | — | % | $ | 999 | <1% | $ | 996 | <1% | |||||||||||||||||||||||||
Obligations of state and political subdivisions (municipal securities) | 546,160 | 17 | % | — | — | % | — | — | % | ||||||||||||||||||||||||||
Residential mortgage-related securities | |||||||||||||||||||||||||||||||||||
FNMA / FHLMC | 132,660 | 4 | % | 295,252 | 7 | % | 464,768 | 11 | % | ||||||||||||||||||||||||||
GNMA | 985,139 | 30 | % | 2,128,531 | 54 | % | 1,913,350 | 47 | % | ||||||||||||||||||||||||||
Private-label | — | — | % | 1,003 | <1% | 1,059 | <1% | ||||||||||||||||||||||||||||
Commercial mortgage-related securities | |||||||||||||||||||||||||||||||||||
FNMA / FHLMC | 21,728 | 1 | % | — | — | % | — | — | % | ||||||||||||||||||||||||||
GNMA | 1,310,207 | 40 | % | 1,220,797 | 31 | % | 1,513,277 | 37 | % | ||||||||||||||||||||||||||
FFELP asset-backed securities | 263,693 | 8 | % | 297,360 | 8 | % | 145,176 | 4 | % | ||||||||||||||||||||||||||
Other debt securities | 3,000 | <1 % | 3,000 | <1% | 3,188 | <1% | |||||||||||||||||||||||||||||
Equity securities(a)
|
— | — | % | — | — | % | 1,632 | <1% | |||||||||||||||||||||||||||
Total fair value and carrying value | $ | 3,262,586 | 100 | % | $ | 3,946,941 | 100 | % | $ | 4,043,446 | 100 | % | |||||||||||||||||||||||
Net unrealized holding gains (losses) | $ | 10,636 | $ | (94,961) | $ | (56,971) | |||||||||||||||||||||||||||||
Investment securities held to maturity | |||||||||||||||||||||||||||||||||||
Amortized cost | |||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 999 | <1 % | $ | — | — | % | $ | — | — | % | ||||||||||||||||||||||||
Obligations of state and political subdivisions (municipal securities) | 1,418,569 | 64 | % | 1,790,683 | 65 | % | 1,281,320 | 56 | % | ||||||||||||||||||||||||||
Residential mortgage-related securities | |||||||||||||||||||||||||||||||||||
FNMA / FHLMC | 81,676 | 4 | % | 92,788 | 3 | % | 40,995 | 2 | % | ||||||||||||||||||||||||||
GNMA | 269,523 | 12 | % | 351,606 | 13 | % | 414,440 | 18 | % | ||||||||||||||||||||||||||
GNMA commercial mortgage-related securities | 434,317 | 20 | % | 505,434 | 18 | % | 546,098 | 24 | % | ||||||||||||||||||||||||||
Total amortized cost and carrying value | $ | 2,205,083 | 100 | % | $ | 2,740,511 | 100 | % | $ | 2,282,853 | 100 | % | |||||||||||||||||||||||
Fair value | |||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 1,018 | < 1% | $ | — | — | % | $ | — | — | % | ||||||||||||||||||||||||
Obligations of state and political subdivisions (municipal securities) | 1,487,227 | 65 | % | 1,783,659 | 66 | % | 1,292,042 | 56 | % | ||||||||||||||||||||||||||
Residential mortgage-related securities | |||||||||||||||||||||||||||||||||||
FNMA / FHLMC | 83,420 | 4 | % | 91,162 | 3 | % | 40,904 | 2 | % | ||||||||||||||||||||||||||
GNMA | 270,296 | 12 | % | 345,035 | 13 | % | 410,740 | 18 | % | ||||||||||||||||||||||||||
GNMA commercial mortgage-related securities | 434,503 | 19 | % | 490,414 | 18 | % | 539,888 | 24 | % | ||||||||||||||||||||||||||
Total fair value | $ | 2,276,465 | 100 | % | $ | 2,710,271 | 100 | % | $ | 2,283,574 | 100 | % | |||||||||||||||||||||||
Net unrealized holding gains (losses) | $ | 71,381 | $ | (30,240) | $ | 721 | |||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||
Equity securities carrying value and fair value(a)
|
$ | 15,090 | 100 | % | $ | 1,568 | 100 | % | $ | — | — | % |
December 31, 2019 | |||||||||||||||||
($ in Thousands) | Amortized Cost | Fair Value |
Yield(b)
|
||||||||||||||
Available for sale securities | |||||||||||||||||
Obligations of state and political subdivisions (municipal securities) | |||||||||||||||||
Within one year | $ | 1,795 | $ | 1,800 | 4.65 | % | |||||||||||
After one but within five years | 30,399 | 30,901 | 3.21 | % | |||||||||||||
After five years but within ten years | 317,292 | 326,361 | 3.28 | % | |||||||||||||
After ten years | 180,422 | 187,098 | 3.52 | % | |||||||||||||
Total obligations of state and political subdivisions (municipal securities) | $ | 529,908 | $ | 546,160 | 3.37 | % | |||||||||||
Agency residential mortgage-related securities | |||||||||||||||||
Within one year | $ | 8,113 | $ | 8,140 | 3.29 | % | |||||||||||
After one but within five years | 1,060,849 | 1,064,496 | 2.46 | % | |||||||||||||
After five years but within ten years | 45,137 | 45,163 | 2.34 | % | |||||||||||||
Total agency residential mortgage-related securities | $ | 1,114,100 | $ | 1,117,799 | 2.46 | % | |||||||||||
Agency commercial mortgage-related securities | |||||||||||||||||
Within one year | $ | 20,211 | $ | 20,225 | 2.66 | % | |||||||||||
After one but within five years | 545,064 | 541,975 | 2.29 | % | |||||||||||||
After five years but within ten years | 769,490 | 769,735 | 2.58 | % | |||||||||||||
Total agency commercial mortgage-related securities | $ | 1,334,765 | $ | 1,331,935 | 2.46 | % | |||||||||||
FFELP asset-backed securities | |||||||||||||||||
Within one year | $ | 45,862 | $ | 44,877 | 2.70 | % | |||||||||||
After five years but within ten years | 224,316 | 218,815 | 2.59 | % | |||||||||||||
Total FFELP asset-backed securities | $ | 270,178 | $ | 263,693 | 2.61 | % | |||||||||||
Other debt securities | |||||||||||||||||
Within one year | $ | 1,000 | $ | 1,000 | 2.39 | % | |||||||||||
After one but within five years | 2,000 | 2,000 | 3.18 | % | |||||||||||||
Total other debt securities | $ | 3,000 | $ | 3,000 | 2.91 | % | |||||||||||
Total available for sale securities | $ | 3,251,950 | $ | 3,262,586 | 2.62 | % | |||||||||||
Held to maturity securities | |||||||||||||||||
U. S. Treasury securities | |||||||||||||||||
After one but within five years | $ | 999 | $ | 1,018 | 2.56 | % | |||||||||||
Total U. S. Treasury securities | $ | 999 | $ | 1,018 | 2.56 | % | |||||||||||
Obligations of state and political subdivisions (municipal securities) | |||||||||||||||||
Within one year | $ | 29,033 | $ | 29,218 | 4.23 | % | |||||||||||
After one but within five years | 81,024 | 82,227 | 3.79 | % | |||||||||||||
After five years but within ten years | 136,138 | 140,704 | 3.72 | % | |||||||||||||
After ten years | 1,172,373 | 1,235,077 | 4.06 | % | |||||||||||||
Total obligations of state and political subdivisions (municipal securities) | $ | 1,418,569 | $ | 1,487,227 | 4.02 | % | |||||||||||
Agency residential mortgage-related securities | |||||||||||||||||
Within one year | $ | 53 | $ | 54 | 5.82 | % | |||||||||||
After one but within five years | 229,088 | 229,379 | 2.22 | % | |||||||||||||
After five years but within ten years | 80,386 | 81,936 | 3.11 | % | |||||||||||||
After ten years | 41,672 | 42,348 | 3.21 | % | |||||||||||||
Total agency residential mortgage-related securities | $ | 351,198 | $ | 353,717 | 2.54 | % | |||||||||||
GNMA commercial mortgage-related securities | |||||||||||||||||
After one but within five years | $ | 325,738 | $ | 329,317 | 2.18 | % | |||||||||||
After five years but within ten years | 108,579 | 105,186 | 1.89 | % | |||||||||||||
Total GNMA commercial mortgage-related securities | $ | 434,317 | $ | 434,503 | 2.11 | % | |||||||||||
Total held to maturity securities | $ | 2,205,083 | $ | 2,276,465 | 3.40 | % | |||||||||||
Equity securities | |||||||||||||||||
Equity securities with readily determinable fair values | $ | 1,646 | $ | 1,646 | — | % | |||||||||||
Equity securities without readily determinable fair values | 13,444 | 13,444 | — | % | |||||||||||||
Total equity securities | $ | 15,090 | $ | 15,090 | — | % |
As of December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Noninterest-bearing demand | $ | 5,450,709 | $ | 5,698,530 | $ | 5,478,416 | |||||||||||
Savings | 2,735,036 | 2,012,841 | 1,524,992 | ||||||||||||||
Interest-bearing demand | 5,329,717 | 5,336,952 | 4,603,157 | ||||||||||||||
Money market | 7,640,798 | 9,033,669 | 8,830,328 | ||||||||||||||
Brokered CDs | 5,964 | 192,234 | 18,609 | ||||||||||||||
Other time | 2,616,839 | 2,623,167 | 2,330,460 | ||||||||||||||
Total deposits | 23,779,064 | 24,897,393 | 22,785,962 | ||||||||||||||
Customer funding(a)
|
103,113 | 137,364 | 250,332 | ||||||||||||||
Total deposits and customer funding | $ | 23,882,177 | $ | 25,034,757 | $ | 23,036,294 | |||||||||||
Network transaction deposits(b)
|
$ | 1,336,286 | $ | 2,276,296 | $ | 2,520,968 | |||||||||||
Brokered CDs | 5,964 | 192,234 | 18,609 | ||||||||||||||
Total network and brokered funding | 1,342,250 | 2,468,530 | 2,539,577 | ||||||||||||||
Net deposits and customer funding (total deposits and customer funding, excluding Brokered CDs and network transaction deposits) | $ | 22,539,927 | $ | 22,566,227 | $ | 20,496,717 |
As of December 31, 2019 | |||||||||||||||||
($ in Thousands) |
Certificates
of Deposit |
Other
Time Deposits |
Total Certificates
of Deposits and Other Time Deposits |
||||||||||||||
Three months or less | $ | 212,176 | $ | 228,336 | $ | 440,512 | |||||||||||
Over three months through six months | 151,191 | 127,234 | 278,424 | ||||||||||||||
Over six months through twelve months | 203,497 | 158,057 | 361,554 | ||||||||||||||
Over twelve months | 179,001 | 86,862 | 265,864 | ||||||||||||||
Total | $ | 745,865 | $ | 600,489 | $ | 1,346,354 |
Moody’s |
S&P(a)
|
|||||||
Bank short-term deposits | P-1 | — | ||||||
Bank long-term deposits/issuer | A1 | BBB+ | ||||||
Corporation commercial paper | P-2 | — | ||||||
Corporation long-term senior debt/issuer | Baa1 | BBB | ||||||
Outlook | Stable | Stable |
Dynamic Forecast
December 31, 2019 |
Static Forecast
December 31, 2019 |
Dynamic Forecast
December 31, 2018 |
Static Forecast
December 31, 2018 |
|||||||||||
Gradual Rate Change | ||||||||||||||
100 bp increase in interest rates | 4.0 | % | 3.7 | % | 2.5 | % | 2.7 | % | ||||||
200 bp increase in interest rates | 7.4 | % | 6.7 | % | 5.8 | % | 5.4 | % |
December 31, 2019 | December 31, 2018 | |||||||
Instantaneous Rate Change | ||||||||
100 bp increase in interest rates | (0.5) | % | (2.0) | % | ||||
200 bp increase in interest rates | (2.2) | % | (4.5) | % |
December 31, 2019 |
Note
Reference |
One Year
or Less |
One to
Three Years |
Three to
Five Years |
Over
Five Years |
Total | |||||||||||||||||||||||||||||
($ in Thousands) | |||||||||||||||||||||||||||||||||||
Time deposits | 8 | $ | 1,947,004 | $ | 574,922 | $ | 100,538 | $ | 340 | $ | 2,622,803 | ||||||||||||||||||||||||
Short-term funding | 9 | 465,113 | — | — | — | 465,113 | |||||||||||||||||||||||||||||
FHLB advances | 9 | 605,056 | 518,254 | 453,166 | 1,604,491 | 3,180,967 | |||||||||||||||||||||||||||||
Long-term funding | 9 | 39 | 298,640 | 79 | 250,585 | 549,343 | |||||||||||||||||||||||||||||
Operating leases(a)
|
7 | 10,662 | 17,990 | 10,613 | 16,316 | 55,580 | |||||||||||||||||||||||||||||
Commitments to extend credit | 14 & 16 | 4,044,363 | 3,193,685 | 1,907,405 | 141,959 | 9,287,412 | |||||||||||||||||||||||||||||
Total | $ | 7,072,237 | $ | 4,603,491 | $ | 2,471,801 | $ | 2,013,691 | $ | 16,161,218 |
As of December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Risk-based Capital(a)(b)
|
|||||||||||||||||
CET1 | $ | 2,480,698 | $ | 2,449,721 | $ | 2,171,508 | |||||||||||
Tier 1 capital | 2,736,776 | 2,705,939 | 2,331,245 | ||||||||||||||
Total capital | 3,208,625 | 3,216,575 | 2,848,851 | ||||||||||||||
Total risk-weighted assets | 24,296,382 | 23,842,542 | 21,504,495 | ||||||||||||||
CET1 capital ratio | 10.21 | % | 10.27 | % | 10.10 | % | |||||||||||
Tier 1 capital ratio | 11.26 | % | 11.35 | % | 10.84 | % | |||||||||||
Total capital ratio | 13.21 | % | 13.49 | % | 13.25 | % | |||||||||||
Tier 1 leverage ratio | 8.83 | % | 8.49 | % | 8.03 | % | |||||||||||
Selected Equity and Performance Ratios | |||||||||||||||||
Total stockholders’ equity / total assets | 12.11 | % | 11.25 | % | 10.63 | % | |||||||||||
Dividend payout ratio(c)
|
35.75 | % | 32.29 | % | 34.48 | % |
At or for the Year Ended December 31, | |||||||||||||||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||
Selected Equity and Performance Ratios(a)(b)(c)
|
|||||||||||||||||||||||||||||
Tangible common equity / tangible assets | 7.71 | % | 7.04 | % | 7.08 | % | 6.91 | % | 6.85 | % | |||||||||||||||||||
Return on average equity | 8.44 | % | 9.03 | % | 7.23 | % | 6.63 | % | 6.50 | % | |||||||||||||||||||
Return on average tangible common equity | 13.21 | % | 14.06 | % | 10.86 | % | 10.07 | % | 9.97 | % | |||||||||||||||||||
Return on average common equity Tier 1 | 12.59 | % | 13.15 | % | 10.43 | % | 9.86 | % | 9.88 | % | |||||||||||||||||||
Return on average assets | 0.99 | % | 1.01 | % | 0.78 | % | 0.70 | % | 0.70 | % | |||||||||||||||||||
Return on average tangible assets | 1.03 | % | 1.05 | % | 0.81 | % | 0.73 | % | 0.72 | % | |||||||||||||||||||
Average stockholders' equity / average assets | 11.72 | % | 11.19 | % | 10.77 | % | 10.60 | % | 10.72 | % | |||||||||||||||||||
Tangible Common Equity and Common Equity Tier 1 Reconciliation(a)(b)
|
|||||||||||||||||||||||||||||
Common equity | $ | 3,665,407 | $ | 3,524,171 | $ | 3,077,514 | $ | 2,931,383 | $ | 2,815,867 | |||||||||||||||||||
Goodwill and other intangible assets, net | (1,264,531) | (1,244,859) | (991,819) | (987,328) | (985,302) | ||||||||||||||||||||||||
Tangible common equity | $ | 2,400,876 | $ | 2,279,312 | $ | 2,085,695 | $ | 1,944,055 | $ | 1,830,565 | |||||||||||||||||||
Tangible Assets Reconciliation(a)(c)
|
|||||||||||||||||||||||||||||
Total assets | $ | 32,386,478 | $ | 33,615,122 | $ | 30,443,626 | $ | 29,139,315 | $ | 27,711,835 | |||||||||||||||||||
Goodwill and other intangible assets, net | (1,264,531) | (1,244,859) | (991,819) | (987,328) | (985,302) | ||||||||||||||||||||||||
Tangible assets | $ | 31,121,947 | $ | 32,370,263 | $ | 29,451,807 | $ | 28,151,987 | $ | 26,726,533 | |||||||||||||||||||
Average Tangible Common Equity and Average Common Equity Tier 1 Reconciliation(a)(b)
|
|||||||||||||||||||||||||||||
Common equity | $ | 3,615,153 | $ | 3,505,075 | $ | 3,012,704 | $ | 2,888,579 | $ | 2,799,150 | |||||||||||||||||||
Goodwill and other intangible assets, net | (1,256,668) | (1,209,311) | (988,073) | (988,406) | (982,454) | ||||||||||||||||||||||||
Tangible common equity | 2,358,485 | 2,295,764 | 2,024,631 | 1,900,173 | 1,816,696 | ||||||||||||||||||||||||
Less: Accumulated other comprehensive income / loss | 68,946 | 117,408 | 53,879 | 7,526 | (9,059) | ||||||||||||||||||||||||
Less: Deferred tax assets / deferred tax liabilities, net | 46,980 | 41,747 | 30,949 | 32,692 | 25,960 | ||||||||||||||||||||||||
Average common equity Tier 1 | $ | 2,474,411 | $ | 2,454,919 | $ | 2,109,459 | $ | 1,940,391 | $ | 1,833,597 | |||||||||||||||||||
Average Tangible Assets Reconciliation(a)(c)
|
|||||||||||||||||||||||||||||
Total assets | $ | 33,046,604 | $ | 33,007,859 | $ | 29,467,324 | $ | 28,506,112 | $ | 27,019,216 | |||||||||||||||||||
Goodwill and other intangible assets, net | (1,256,668) | (1,209,311) | (988,073) | (988,406) | (982,454) | ||||||||||||||||||||||||
Tangible assets | $ | 31,789,936 | $ | 31,798,548 | $ | 28,479,252 | $ | 27,517,705 | $ | 26,036,762 | |||||||||||||||||||
Efficiency Ratio Reconciliation(d)
|
|||||||||||||||||||||||||||||
Federal Reserve efficiency ratio | 65.38 | % | 66.23 | % | 65.97 | % | 66.95 | % | 69.96 | % | |||||||||||||||||||
Fully tax-equivalent adjustment | (0.85) | % | (0.71) | % | (1.28) | % | (1.29) | % | (1.41) | % | |||||||||||||||||||
Other intangible amortization | (0.82) | % | (0.66) | % | (0.18) | % | (0.20) | % | (0.31) | % | |||||||||||||||||||
Fully tax-equivalent efficiency ratio | 63.72 | % | 64.87 | % | 64.51 | % | 65.46 | % | 68.24 | % | |||||||||||||||||||
Acquisition related costs adjustment(e)
|
(0.60) | % | (2.42) | % | — | % | — | % | — | % | |||||||||||||||||||
Fully tax-equivalent efficiency ratio, excluding acquisition related costs (adjusted efficiency ratio) | 63.12 | % | 62.45 | % | 64.51 | % | 65.46 | % | 68.24 | % |
Year Ended December 31, | Change From Prior Year | |||||||||||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | % Change 2019 | % Change 2018 | |||||||||||||||||||||
Corporate and Commercial Specialty | ||||||||||||||||||||||||||
Total revenue | $ | 427,749 | $ | 453,578 | $ | 409,348 | (6) | % | 11 | % | ||||||||||||||||
Credit provision | 52,382 | 44,592 | 42,298 | 17 | % | 5 | % | |||||||||||||||||||
Noninterest expense | 156,348 | 160,399 | 156,890 | (3) | % | 2 | % | |||||||||||||||||||
Net income | 177,809 | 200,737 | 138,505 | (11) | % | 45 | % | |||||||||||||||||||
Average earning assets | 12,344,244 | 11,852,662 | 10,820,998 | 4 | % | 10 | % | |||||||||||||||||||
Average loans | 12,339,072 | 11,841,818 | 10,811,827 | 4 | % | 10 | % | |||||||||||||||||||
Average deposits | 8,265,447 | 8,112,430 | 6,938,913 | 2 | % | 17 | % | |||||||||||||||||||
Average allocated capital (Average CET1)(a)
|
1,243,900 | 1,209,558 | 1,117,761 | 3 | % | 8 | % | |||||||||||||||||||
Return on average allocated capital (ROCET1)(a)
|
14.29 | % | 16.60 | % | 12.39 | % | -231 bp | 421 bp | ||||||||||||||||||
Community, Consumer, and Business | ||||||||||||||||||||||||||
Total revenue | $ | 744,067 | $ | 740,629 | $ | 627,611 | — | % | 18 | % | ||||||||||||||||
Credit provision | 20,043 | 20,083 | 20,400 | — | % | (2) | % | |||||||||||||||||||
Noninterest expense | 547,423 | 541,771 | 490,567 | 1 | % | 10 | % | |||||||||||||||||||
Net income | 139,496 | 141,232 | 75,819 | (1) | % | 86 | % | |||||||||||||||||||
Average earning assets | 10,286,275 | 10,336,105 | 9,456,549 | — | % | 9 | % | |||||||||||||||||||
Average loans | 10,283,258 | 10,332,665 | 9,452,253 | — | % | 9 | % | |||||||||||||||||||
Average deposits | 14,403,547 | 13,623,852 | 11,711,407 | 6 | % | 16 | % | |||||||||||||||||||
Average allocated capital (Average CET1)(a)
|
641,986 | 653,354 | 586,417 | (2) | % | 11 | % | |||||||||||||||||||
Return on average allocated capital (ROCET1)(a)
|
21.73 | % | 21.62 | % | 12.93 | % | 11 bp | 869 bp | ||||||||||||||||||
Risk Management and Shared Services | ||||||||||||||||||||||||||
Total revenue | $ | 44,682 | $ | 40,941 | $ | 36,941 | 9 | % | 11 | % | ||||||||||||||||
Credit provision | (56,425) | (64,675) | (36,698) | (13) | % | 76 | % | |||||||||||||||||||
Noninterest expense (b)
|
90,217 | 119,629 | 61,677 | (25) | % | 94 | % | |||||||||||||||||||
Net income | 9,484 | (8,407) | 14,941 | N/M | N/M | |||||||||||||||||||||
Average earning assets | 7,190,310 | 7,861,026 | 6,722,337 | (9) | % | 17 | % | |||||||||||||||||||
Average loans | 500,468 | 543,814 | 328,303 | (8) | % | 66 | % | |||||||||||||||||||
Average deposits | 2,066,613 | 2,335,768 | 3,273,282 | (12) | % | (29) | % | |||||||||||||||||||
Average allocated capital (Average CET1)(a)
|
588,525 | 592,006 | 405,281 | (1) | % | 46 | % | |||||||||||||||||||
Return on average allocated capital (ROCET1)(a)
|
(0.97) | % | (3.24) | % | 1.38 | % | 227 bp | -462 bp | ||||||||||||||||||
Consolidated Total | ||||||||||||||||||||||||||
Total revenue | $ | 1,216,498 | $ | 1,235,148 | $ | 1,073,900 | (2) | % | 15 | % | ||||||||||||||||
Return on average allocated capital (ROCET1)(a)
|
12.59 | % | 13.15 | % | 10.43 | % | -56 bp | 272 bp |
2019 Quarters Ended | |||||||||||||||||||||||
(In Thousands, except per common share data) | December 31 | September 30 | June 30 | March 31 | |||||||||||||||||||
Net interest income | $ | 200,142 | $ | 206,365 | $ | 213,619 | $ | 215,547 | |||||||||||||||
Provision for credit losses | — | 2,000 | 8,000 | 6,000 | |||||||||||||||||||
Income before income taxes | 89,467 | 104,286 | 103,678 | 109,078 | |||||||||||||||||||
Net income available to common equity | 68,303 | 79,539 | 80,860 | 82,885 | |||||||||||||||||||
Basic earnings per common share | $ | 0.43 | $ | 0.50 | $ | 0.49 | $ | 0.50 | |||||||||||||||
Diluted earnings per common share | $ | 0.43 | $ | 0.49 | $ | 0.49 | $ | 0.50 | |||||||||||||||
2018 Quarters Ended | |||||||||||||||||||||||
(In Thousands, except per common share data) | December 31 | September 30 | June 30 | March 31 | |||||||||||||||||||
Net interest income | $ | 223,955 | $ | 219,392 | $ | 226,362 | $ | 209,871 | |||||||||||||||
Provision for credit losses | 1,000 | (5,000) | 4,000 | — | |||||||||||||||||||
Income before income taxes | 113,839 | 108,279 | 103,947 | 87,285 | |||||||||||||||||||
Net income available to common equity | 85,278 | 83,521 | 86,863 | 67,117 | |||||||||||||||||||
Basic earnings per common share | $ | 0.52 | $ | 0.49 | $ | 0.51 | $ | 0.41 | |||||||||||||||
Diluted earnings per common share | $ | 0.51 | $ | 0.48 | $ | 0.50 | $ | 0.40 |
ITEM 7A. | Quantitative and Qualitative Disclosures About Market Risk |
ITEM 8. | Financial Statements and Supplementary Data |
December 31, | |||||||||||
(In Thousands, except share and per share data) | 2019 | 2018 | |||||||||
Assets | |||||||||||
Cash and due from banks | $ | 373,380 | $ | 507,187 | |||||||
Interest-bearing deposits in other financial institutions | 207,624 | 221,226 | |||||||||
Federal funds sold and securities purchased under agreements to resell | 7,740 | 148,285 | |||||||||
Investment securities held to maturity, at amortized cost | 2,205,083 | 2,740,511 | |||||||||
Investment securities available for sale, at fair value | 3,262,586 | 3,946,941 | |||||||||
Equity securities | 15,090 | 1,568 | |||||||||
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | 227,347 | 250,534 | |||||||||
Residential loans held for sale | 136,280 | 64,321 | |||||||||
Commercial loans held for sale | 15,000 | 14,943 | |||||||||
Loans | 22,821,440 | 22,940,429 | |||||||||
Allowance for loan losses | (201,371) | (238,023) | |||||||||
Loans, net | 22,620,068 | 22,702,406 | |||||||||
Bank and corporate owned life insurance | 671,948 | 663,203 | |||||||||
Tax credit and other investments | 279,969 | 161,181 | |||||||||
Premises and equipment, net | 435,284 | 363,225 | |||||||||
Goodwill | 1,176,230 | 1,169,023 | |||||||||
Mortgage servicing rights, net | 67,306 | 68,193 | |||||||||
Other intangible assets, net | 88,301 | 75,836 | |||||||||
Other assets(a)
|
597,242 | 516,538 | |||||||||
Total assets | $ | 32,386,478 | $ | 33,615,122 | |||||||
Liabilities and stockholders' equity | |||||||||||
Noninterest-bearing demand deposits | $ | 5,450,709 | $ | 5,698,530 | |||||||
Interest-bearing deposits | 18,328,355 | 19,198,863 | |||||||||
Total deposits | 23,779,064 | 24,897,393 | |||||||||
Federal funds purchased and securities sold under agreements to repurchase | 433,097 | 111,651 | |||||||||
Commercial paper | 32,016 | 45,423 | |||||||||
FHLB advances | 3,180,967 | 3,574,371 | |||||||||
Other long-term funding | 549,343 | 795,611 | |||||||||
Accrued expenses and other liabilities(a)
|
489,868 | 409,787 | |||||||||
Total liabilities | 28,464,355 | 29,834,235 | |||||||||
Stockholders’ equity
|
|||||||||||
Preferred equity | 256,716 | 256,716 | |||||||||
Common equity | |||||||||||
Common stock | 1,752 | 1,752 | |||||||||
Surplus | 1,716,431 | 1,712,615 | |||||||||
Retained earnings | 2,380,867 | 2,181,414 | |||||||||
Accumulated other comprehensive income (loss) | (33,183) | (124,972) | |||||||||
Treasury stock, at cost | (400,460) | (246,638) | |||||||||
Total common equity | 3,665,407 | 3,524,171 | |||||||||
Total stockholders’ equity | 3,922,124 | 3,780,888 | |||||||||
Total liabilities and stockholders’ equity | $ | 32,386,478 | $ | 33,615,122 | |||||||
Preferred shares authorized (par value $1.00 per share) | 750,000 | 750,000 | |||||||||
Preferred shares issued and outstanding | 264,458 | 264,458 | |||||||||
Common shares authorized (par value $0.01 per share) | 250,000,000 | 250,000,000 | |||||||||
Common shares issued | 175,216,409 | 175,216,409 | |||||||||
Common shares outstanding | 157,171,247 | 164,440,471 |
For the Years Ended December 31, | |||||||||||||||||
(In Thousands, except per share data) | 2019 | 2018 | 2017 | ||||||||||||||
Interest income | |||||||||||||||||
Interest and fees on loans | $ | 998,099 | $ | 976,990 | $ | 749,000 | |||||||||||
Interest and dividends on investment securities | |||||||||||||||||
Taxable | 100,304 | 119,741 | 96,909 | ||||||||||||||
Tax-exempt | 57,565 | 44,782 | 32,977 | ||||||||||||||
Other interest | 16,643 | 12,623 | 7,719 | ||||||||||||||
Total interest income | 1,172,610 | 1,154,137 | 886,605 | ||||||||||||||
Interest expense | |||||||||||||||||
Interest on deposits | 237,286 | 176,118 | 94,025 | ||||||||||||||
Interest on federal funds purchased and securities sold under agreements to repurchase | 1,579 | 2,006 | 2,527 | ||||||||||||||
Interest on other short-term funding | 149 | 186 | 293 | ||||||||||||||
Interest on FHLB advances | 69,816 | 73,668 | 30,364 | ||||||||||||||
Interest on long-term funding | 28,106 | 22,579 | 18,176 | ||||||||||||||
Total interest expense | 336,936 | 274,557 | 145,385 | ||||||||||||||
Net interest income | 835,674 | 879,580 | 741,220 | ||||||||||||||
Provision for credit losses | 16,000 | — | 26,000 | ||||||||||||||
Net interest income after provision for credit losses | 819,674 | 879,580 | 715,220 | ||||||||||||||
Noninterest income | |||||||||||||||||
Insurance commissions and fees | 89,104 | 89,511 | 81,474 | ||||||||||||||
Wealth management fees(a)
|
83,467 | 82,562 | 70,126 | ||||||||||||||
Service charges on deposit account fees | 63,135 | 66,075 | 64,427 | ||||||||||||||
Card-based fees | 39,755 | 39,656 | 34,834 | ||||||||||||||
Other fee-based revenue | 18,942 | 17,818 | 17,854 | ||||||||||||||
Capital markets, net | 19,862 | 20,120 | 19,642 | ||||||||||||||
Mortgage banking, net | 31,878 | 19,911 | 19,360 | ||||||||||||||
Bank and corporate owned life insurance | 14,845 | 13,951 | 16,250 | ||||||||||||||
Asset gains (losses), net(b)
|
2,713 | (1,103) | (1,244) | ||||||||||||||
Investment securities gains (losses), net | 5,957 | (1,985) | 434 | ||||||||||||||
Other | 11,165 | 9,051 | 9,523 | ||||||||||||||
Total noninterest income | 380,824 | 355,568 | 332,680 | ||||||||||||||
Noninterest expense | |||||||||||||||||
Personnel | 487,063 | 482,676 | 428,976 | ||||||||||||||
Technology | 82,429 | 72,674 | 63,004 | ||||||||||||||
Occupancy | 62,399 | 59,121 | 53,842 | ||||||||||||||
Business development and advertising | 29,600 | 30,923 | 28,946 | ||||||||||||||
Equipment | 23,550 | 23,243 | 21,201 | ||||||||||||||
Legal and professional | 19,901 | 23,061 | 22,509 | ||||||||||||||
Loan and foreclosure costs | 8,861 | 7,410 | 7,293 | ||||||||||||||
FDIC assessment | 16,250 | 30,000 | 31,300 | ||||||||||||||
Other intangible amortization | 9,948 | 8,159 | 1,959 | ||||||||||||||
Acquisition related costs(c)
|
7,320 | 29,002 | — | ||||||||||||||
Other | 46,666 | 55,530 | 50,102 | ||||||||||||||
Total noninterest expense | 793,988 | 821,799 | 709,133 | ||||||||||||||
Income before income taxes | 406,509 | 413,349 | 338,767 | ||||||||||||||
Income tax expense | 79,720 | 79,786 | 109,503 | ||||||||||||||
Net income | 326,790 | 333,562 | 229,264 | ||||||||||||||
Preferred stock dividends | 15,202 | 10,784 | 9,347 | ||||||||||||||
Net income available to common equity | $ | 311,587 | $ | 322,779 | $ | 219,917 | |||||||||||
Earnings per common share | |||||||||||||||||
Basic | $ | 1.93 | $ | 1.92 | $ | 1.45 | |||||||||||
Diluted | $ | 1.91 | $ | 1.89 | $ | 1.42 | |||||||||||
Average common shares outstanding | |||||||||||||||||
Basic | 160,534 | 167,345 | 150,877 | ||||||||||||||
Diluted | 161,932 | 169,732 | 153,647 |
For the Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Net income | $ | 326,790 | $ | 333,562 | $ | 229,264 | |||||||||||
Other comprehensive income, net of tax | |||||||||||||||||
Investment securities available for sale | |||||||||||||||||
Net unrealized gains (losses) | 111,592 | (39,891) | (12,302) | ||||||||||||||
Net unrealized gain (loss) on available for sale securities transferred to held to maturity securities | — | — | (14,738) | ||||||||||||||
Amortization of net unrealized (gains) losses on available for sale securities transferred to held to maturity securities | 895 | (572) | (2,665) | ||||||||||||||
Reclassification adjustment for net losses (gains) realized in net income(a)
|
(5,957) | 1,985 | — | ||||||||||||||
Reclassification from OCI due to change in accounting principle | — | (84) | — | ||||||||||||||
Reclassification of certain tax effects from OCI | — | (8,419) | — | ||||||||||||||
Income tax (expense) benefit | (26,898) | 9,791 | 11,331 | ||||||||||||||
Other comprehensive income (loss) on investment securities available for sale | 79,631 | (37,189) | (18,374) | ||||||||||||||
Defined benefit pension and postretirement obligations | |||||||||||||||||
Amortization of prior service cost | (148) | (148) | (148) | ||||||||||||||
Net actuarial (loss) gain | 16,296 | (28,612) | 14,273 | ||||||||||||||
Amortization of actuarial loss (gain) | 476 | 2,203 | 2,282 | ||||||||||||||
Reclassification of certain tax effects from OCI | — | (5,235) | — | ||||||||||||||
Income tax (expense) benefit | (4,465) | 6,767 | (6,112) | ||||||||||||||
Other comprehensive income (loss) on pension and postretirement obligations | 12,158 | (25,025) | 10,295 | ||||||||||||||
Total other comprehensive income (loss) | 91,789 | (62,214) | (8,079) | ||||||||||||||
Comprehensive income | $ | 418,579 | $ | 271,348 | $ | 221,185 |
(In Thousands, except per share data) | Preferred Equity | Common Stock | |||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Surplus |
Retained
Earnings |
Accumulated
Other Comprehensive Income (Loss) |
Treasury Stock | Total | |||||||||||||||||||||||||||||||||
Balance, December 31, 2016 | 165 | $ | 159,929 | 163,030 | $ | 1,630 | $ | 1,364,066 | $ | 1,791,196 | $ | (54,679) | $ | (170,830) | $ | 3,091,312 | |||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 229,264 | — | — | 229,264 | ||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (8,079) | — | (8,079) | ||||||||||||||||||||||||||||||||
Comprehensive income | $ | 221,185 | |||||||||||||||||||||||||||||||||||||||
Common stock issued: | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation plans, net
|
— | — | — | — | (17,737) | — | — | 45,356 | 27,619 | ||||||||||||||||||||||||||||||||
Acquisitions | — | — | 291 | 3 | 7,148 | — | — | — | 7,151 | ||||||||||||||||||||||||||||||||
Purchase of common stock returned to authorized but unissued | — | — | (1,569) | (15) | (37,016) | — | — | — | (37,031) | ||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | — | — | (9,290) | (9,290) | ||||||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||||||||
Common stock, $0.50 per share | — | — | — | — | — | (76,417) | — | — | (76,417) | ||||||||||||||||||||||||||||||||
Preferred stock(a)
|
— | — | — | — | — | (9,347) | — | — | (9,347) | ||||||||||||||||||||||||||||||||
Stock-based compensation expense, net | — | — | — | — | 21,227 | — | — | — | 21,227 | ||||||||||||||||||||||||||||||||
Tax impact of stock-based compensation | — | — | — | — | 1,034 | — | — | — | 1,034 | ||||||||||||||||||||||||||||||||
Balance, December 31, 2017 | 165 | $ | 159,929 | 161,752 | $ | 1,618 | $ | 1,338,722 | $ | 1,934,696 | $ | (62,758) | $ | (134,764) | $ | 3,237,443 | |||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 333,562 | — | — | 333,562 | ||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | (48,476) | — | (48,476) | ||||||||||||||||||||||||||||||||
Adoption of new accounting standards | — | — | — | — | — | — | (13,738) | — | (13,738) | ||||||||||||||||||||||||||||||||
Comprehensive income | $ | 271,348 | |||||||||||||||||||||||||||||||||||||||
Common stock issued: | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation plans, net
|
— | — | — | — | (7,116) | 15,096 | — | 10,428 | 18,408 | ||||||||||||||||||||||||||||||||
Acquisitions | — | — | 13,705 | 137 | 396,975 | — | — | 91,296 | 488,408 | ||||||||||||||||||||||||||||||||
Purchase of common stock returned to authorized but unissued | — | — | (1,357) | (14) | (33,061) | — | — | — | (33,075) | ||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | — | — | (213,598) | (213,598) | ||||||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||||||||
Common stock, $0.62 per share | — | — | — | — | — | (105,519) | — | — | (105,519) | ||||||||||||||||||||||||||||||||
Preferred stock(b)
|
— | — | — | — | — | (10,784) | — | — | (10,784) | ||||||||||||||||||||||||||||||||
Issuance of preferred stock | 100 | 97,315 | — | — | — | — | — | — | 97,315 | ||||||||||||||||||||||||||||||||
Purchase of preferred stock | (1) | (528) | — | — | — | (8) | — | — | (537) | ||||||||||||||||||||||||||||||||
Common stock warrants exercised | — | — | 1,116 | 11 | (12) | — | — | — | (1) | ||||||||||||||||||||||||||||||||
Stock-based compensation expense, net | — | — | — | — | 17,107 | — | — | — | 17,107 | ||||||||||||||||||||||||||||||||
Tax Act reclassification | — | — | — | — | — | 13,654 | — | — | 13,654 | ||||||||||||||||||||||||||||||||
Change in accounting principle | — | — | — | — | — | 84 | — | — | 84 | ||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | 632 | — | — | 632 | ||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | 264 | $ | 256,716 | 175,216 | $ | 1,752 | $ | 1,712,615 | $ | 2,181,414 | $ | (124,972) | $ | (246,638) | $ | 3,780,888 | |||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 326,790 | — | — | $ | 326,790 | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 91,789 | — | 91,789 | ||||||||||||||||||||||||||||||||
Comprehensive income | $ | 418,579 | |||||||||||||||||||||||||||||||||||||||
Common stock issued: | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation plans, net
|
— | — | — | — | (21,038) | — | — | 32,254 | 11,216 | ||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | — | — | (186,076) | (186,076) | ||||||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||||||||
Common stock, $0.69 per share | — | — | — | — | — | (111,804) | — | — | (111,804) | ||||||||||||||||||||||||||||||||
Preferred stock(c)
|
— | — | — | — | — | (15,202) | — | — | (15,202) | ||||||||||||||||||||||||||||||||
Stock-based compensation expense, net | — | — | — | — | 24,854 | — | — | — | 24,854 | ||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | (331) | — | — | (331) | ||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | 264 | $ | 256,716 | 175,216 | $ | 1,752 | $ | 1,716,431 | $ | 2,380,867 | $ | (33,183) | $ | (400,460) | $ | 3,922,124 |
For the Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||
Net income | $ | 326,790 | $ | 333,562 | $ | 229,264 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Provision for credit losses | 16,000 | — | 26,000 | ||||||||||||||
Depreciation and amortization | 58,149 | 48,253 | 46,967 | ||||||||||||||
Addition to (recovery of) valuation allowance on mortgage servicing rights, net | 63 | (545) | 175 | ||||||||||||||
Amortization of mortgage servicing rights | 12,432 | 9,594 | 10,084 | ||||||||||||||
Amortization of other intangible assets | 9,948 | 8,159 | 1,959 | ||||||||||||||
Amortization and accretion on earning assets, funding, and other, net | 23,573 | 11,624 | 37,476 | ||||||||||||||
Net amortization of tax credit investments | 20,062 | 19,425 | 19,834 | ||||||||||||||
Deferred income taxes | 13,833 | 46,947 | 21,402 | ||||||||||||||
Losses (gains) on sales of investment securities, net | (5,957) | 1,985 | (434) | ||||||||||||||
Asset (gains) losses, net | (2,713) | 1,103 | 1,244 | ||||||||||||||
(Gain) loss on mortgage banking activities, net | (20,120) | (22,497) | (3,516) | ||||||||||||||
Mortgage loans originated for sale | (1,090,792) | (1,092,318) | (715,357) | ||||||||||||||
Proceeds from sales of mortgage loans held for sale | 1,317,077 | 1,131,652 | 819,950 | ||||||||||||||
Pension contributions | — | (41,877) | (6,242) | ||||||||||||||
(Increase) decrease in interest receivable | 7,595 | (7,417) | (9,476) | ||||||||||||||
Increase (decrease) in interest payable | 2,495 | 10,407 | 6,535 | ||||||||||||||
Increase (decrease) in accrued expenses | 723 | 30,924 | 3,520 | ||||||||||||||
Increase (decrease) in derivative asset | (102,966) | 40,950 | (13,076) | ||||||||||||||
Net change in other assets and other liabilities | (11,930) | (33,363) | (17,941) | ||||||||||||||
Net cash provided by operating activities | 574,260 | 496,567 | 458,368 | ||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||
Net increase in loans | (137,990) | (326,464) | (861,934) | ||||||||||||||
Purchases of | |||||||||||||||||
Available for sale securities | (460,124) | (737,580) | (1,137,191) | ||||||||||||||
Held to maturity securities | (423,682) | (682,622) | (234,379) | ||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stocks | (246,836) | (347,323) | (262,986) | ||||||||||||||
Premises, equipment, and software, net of disposals | (67,459) | (65,854) | (47,369) | ||||||||||||||
Proceeds from | |||||||||||||||||
Sales of available for sale securities | 1,367,476 | 601,130 | 18,467 | ||||||||||||||
Sale of Federal Home Loan Bank and Federal Reserve Bank stocks | 270,023 | 282,145 | 237,656 | ||||||||||||||
Prepayments, calls, and maturities of available for sale investment securities | 561,659 | 633,859 | 713,486 | ||||||||||||||
Prepayments, calls, and maturities of held to maturity investment securities | 260,510 | 217,836 | 210,753 | ||||||||||||||
Sales, prepayments, calls and maturities of other assets | 10,250 | 41,856 | 20,070 | ||||||||||||||
Net change in tax credit and alternative investments | (67,632) | (57,327) | (53,770) | ||||||||||||||
Net cash (paid) received in acquisition | 551,250 | 59,472 | 339 | ||||||||||||||
Net cash provided by (used in) investing activities | 1,617,446 | (380,872) | (1,396,858) | ||||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||
Net increase (decrease) in deposits | (1,842,748) | 270,481 | 897,514 | ||||||||||||||
Net increase (decrease) in short-term funding | 308,039 | (581,371) | (217,753) | ||||||||||||||
Net increase (decrease) in short-term FHLB advances | (380,000) | 616,000 | (198,000) | ||||||||||||||
Repayment of long-term FHLB advances | (764,657) | (2,150,016) | (115,020) | ||||||||||||||
Proceeds from long-term FHLB advances | 751,573 | 1,837,680 | 750,000 | ||||||||||||||
Redemption of Corporation's senior notes | (250,000) | — | — | ||||||||||||||
Repayment of finance lease principal | (1) | — | — | ||||||||||||||
Proceeds from issuance of long-term funding | — | 300,000 | — | ||||||||||||||
Proceeds from issuance of preferred shares | — | 97,315 | — | ||||||||||||||
Proceeds from issuance of common stock for stock-based compensation plans | 11,216 | 18,408 | 27,619 | ||||||||||||||
Common stock warrants exercised | — | (1) | — | ||||||||||||||
Purchase of preferred shares | — | (537) | — | ||||||||||||||
Purchase of common stock returned to authorized but unissued | — | (33,075) | (37,031) | ||||||||||||||
Purchase of treasury stock | (186,076) | (213,598) | (9,290) | ||||||||||||||
Cash dividends on common stock | (111,804) | (105,519) | (76,417) | ||||||||||||||
Cash dividends on preferred stock | (15,202) | (10,784) | (9,347) | ||||||||||||||
Net cash provided by (used in) financing activities | (2,479,660) | 44,983 | 1,012,275 | ||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (287,954) | 160,678 | 73,785 | ||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 876,698 | 716,018 | 642,233 | ||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 588,744 | $ | 876,698 | $ | 716,018 |
For the Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Supplemental disclosures of cash flow information | |||||||||||||||||
Cash paid for interest | $ | 332,919 | $ | 261,724 | $ | 138,174 | |||||||||||
Cash paid for income and franchise taxes | 41,131 | 18,335 | 81,450 | ||||||||||||||
Loans and bank premises transferred to other real estate owned | 10,513 | 26,517 | 11,505 | ||||||||||||||
Capitalized mortgage servicing rights | 11,606 | 10,722 | 7,167 | ||||||||||||||
Loans transferred into held for sale from portfolio, net | 313,570 | 33,010 | 71,954 | ||||||||||||||
Transfer of held to maturity securities to available for sale securities (adoption of ASU 2019-04) | 692,414 | — | — | ||||||||||||||
Unsettled trades to purchase securities | — | 883 | — | ||||||||||||||
Acquisition | |||||||||||||||||
Fair value of assets acquired, including cash and cash equivalents | 695,848 | 2,567,488 | 647 | ||||||||||||||
Fair value ascribed to goodwill and intangible assets | 29,837 | 261,243 | 6,450 | ||||||||||||||
Fair value of liabilities assumed | 725,764 | 2,340,323 | 54 | ||||||||||||||
Common stock issued in acquisition | (79) | 488,408 | 7,151 |
For the Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Cash and cash equivalents | $ | 400,232 | $ | 782,784 | $ | 643,042 | |||||||||||
Restricted cash | 188,512 | 93,914 | 72,976 | ||||||||||||||
Total cash, cash equivalents, and restricted cash shown on the consolidated statements of cash flows | $ | 588,744 | $ | 876,698 | $ | 716,018 |
Standard | Description | Date of adoption | Effect on financial statements | |||||||||||||||||
ASU 2019-07
Codification Updates to SEC Sections-Amendments to SEC Paragraphs Pursuant to SEC Final Releases No. 33-10532, Disclosure Updates and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates |
The FASB issued this amendment to align the guidance in various SEC sections of the Codification with the requirements of certain SEC final rules. This amendment became effective upon issuance. | 3rd Quarter 2019 | No material impact on results of operations, financial position and liquidity. | |||||||||||||||||
ASU 2019-04
Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments |
The FASB issued this amendment to clarify certain aspects of accounting for credit losses, hedging activities, and financial instruments. Within ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, the amendment allows an entity to designate partial-term fair value hedges of interest rate risk and measure the hedged item by using an assumed maturity, clarifies that an entity can start to amortize the hedged items basis adjustment in a fair value hedge, and it requires entities to disclose for fair value hedging relationships the carrying amounts of hedged assets and liabilities and the cumulative amount of fair value hedge basis adjustments. In addition, it permits a one-time election to reclassify securities that could be used in a hedge from held to maturity to available for sale without risk of tainting the remainder of the held to maturity portfolio. For entities that have adopted the amendments in Update 2017-12 as of the issuance date of this Update, the effective date is as of the beginning of the first annual period beginning after the issuance date of this Update. For those entities, early adoption was permitted, including adoption on any date on or after the issuance of this Update. | 3rd Quarter 2019 | During the third quarter of 2019, the Corporation made a one-time election to transfer municipal securities with an amortized cost of $692 million from held to maturity to available for sale. | |||||||||||||||||
ASU-2018-15 Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract | The FASB issued an amendment which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this Update require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The amendments also require the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The amendment is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Entities were required to apply the amendment either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption was permitted. | 1st Quarter 2019 |
The Corporation elected to early adopt this amendment using the prospective approach. No material impact on results of operation, financial position or liquidity.
|
|||||||||||||||||
ASU 2018-09 Codification Improvements | The FASB issued an amendment which affects a wide variety of Topics in the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance. The amendments in this Update represent changes to clarify, correct errors in, or make minor improvements to the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. The transition and effective date guidance is based on the facts and circumstances of each amendment. Some of the amendments in this Update did not require transition guidance and were effective upon issuance of this Update. However, many of the amendments in this Update did have transition guidance with effective dates for annual periods beginning after December 15, 2018. There are some conforming amendments in this Update that have been made to recently issued guidance that is not yet effective that may require application of the transition and effective date guidance in the original ASU. | 1st Quarter 2019 | No material impact on 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 consolidated balance sheets and disclosing key information about leasing arrangements. This amendment required 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 was 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 could 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 was permitted. ASU 2018-01 permits an entity to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity's adoption of Topic 842. ASU 2018-10 was issued as improvements and clarifications of ASU 2016-02 were identified. This Update provides clarification on narrow aspects of the previously issued Updates. ASU 2018-11 was issued to provide entities with an additional (and optional) transition method to adopt the new leases standard under ASU 2016-02. ASU 2019-01 was issued to assist in determining the fair value of underlying assets by lessors, address the presentation to the statements of cash flows, and clarify transition disclosures related to Topic 250. | 1st Quarter 2019 | The Corporation has adopted this amendment utilizing a modified retrospective approach. At adoption, a right-of-use asset and corresponding lease liability were recognized on the consolidated balance sheets for $52 million and $56 million, respectively. See Note 7 for expanded disclosure requirements. |
Standard | Description | Date of anticipated adoption | Effect on financial statements | |||||||||||||||||
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. ASU 2018-19 was issued to clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. ASU 2019-04 was issued and provides entities alternatives for measurement of accrued interest receivable, clarifies the steps entities should take when recording the transfer of loans or debt securities between measurement classifications or categories and clarifies that entities should include expected recoveries on financial assets. ASU 2019-05 was issued to provide entities that have certain instruments within the scope of Subtopic 320-20 with an option to irrevocably elect the fair value option in Subtopic 825-10. ASU 2019-11 was issued to clarify and address stakeholders' specific issues relating to expected recoveries on purchased credit deteriorated assets and transition and disclosure relief related to troubled debt restructured loans and accrued interest, respectively. Early adoption is permitted. | 1st Quarter 2020 | The Corporation has developed a CECL allowance model which calculates reserves over the life of the loan and is largely driven by portfolio characteristics, risk-grading, economic outlook, and other key methodology assumptions. Those assumptions are based upon the existing probability of default and loss given default framework. In addition, analysis derived from the Corporation's stress testing processes have been leveraged in the development of CECL models. The Corporation will utilize a single economic forecast over a 2-year reasonable and supportable forecast period. In the second year the Corporation will use straight-line reversion to historical losses. The Corporation's cross functional team will periodically refine the model as needed. The Corporation expects to incur a $70 to $80 million after-tax charge which will decrease the opening stockholders' equity balance as of January 1, 2020. A majority of the increase is the result of economic uncertainty and unfunded commitments. The total estimated impact equates to a 21 to 24 basis point decrease to the tangible common equity ratio. The Corporation anticipates increases in the allowance for credit losses on longer dated portfolios and decreases in the shorter dated portfolios. The Corporation is in the process of finalizing the review of the most recent model run and finalizing assumptions including qualitative adjustments, probable troubled debt restructurings, and economic forecasts. |
Standard | Description | Date of anticipated adoption | Effect on financial statements | |||||||||||||||||
ASU 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement | The FASB issued an amendment to add, modify, and remove disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the FASB Concepts Statement "Conceptual Framework for Financial Reporting", including the consideration of costs and benefits. The amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. | 1st Quarter 2020 | Upon adoption, the Corporation will have a slight change in presentation, and an immaterial impact to its results of operations, financial position, and liquidity. | |||||||||||||||||
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. | 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. The Corporation has not had to perform a step one quantitative analysis since 2012, which concluded no impairment was necessary. | |||||||||||||||||
ASU 2018-14
Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans |
The FASB issued an amendment to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments also added requirements to disclose the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendment also clarifies the disclosure requirements in paragraph 715-20-50-3, which states that certain information for defined benefit pension plans should be disclosed. The amendments in this Update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendment is effective for fiscal years ending after December 15, 2020. Entities should apply the amendments in this Update on a retrospective basis to all periods presented. Early adoption is permitted. | 1st Quarter 2021 | The Corporation is currently evaluating the impact on its results of operations, financial position and liquidity. | |||||||||||||||||
ASU 2019-12
Income Taxes (Topic 740)-Simplifying the Accounting for Income Taxes |
The FASB issued this amendment to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendment also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments is permitted. | 1st Quarter 2021 | The Corporation is currently evaluating the impact on its results of operations, financial position and liquidity. |
($ in Thousands) | Purchase Accounting Adjustments | June 14, 2019 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | — | $ | 551,250 | ||||
Loans | (1,552) | 116,346 | ||||||
Premises and equipment, net | 4,800 | 22,430 | ||||||
Goodwill | 7,286 | |||||||
Core deposit intangibles (included in other intangible assets, net on the face of the Consolidated Balance Sheets) | 22,630 | 22,630 | ||||||
Other real estate owned (included in other assets on the face of the Consolidated Balance Sheets) | (2,561) | 5,263 | ||||||
Others assets | $ | — | 559 | |||||
Total assets | $ | 725,764 | ||||||
Liabilities | ||||||||
Deposits | $ | 156 | $ | 725,173 | ||||
Other liabilities | $ | 70 | 590 | |||||
Total liabilities | $ | 725,764 | ||||||
($ in Thousands) | Purchase Accounting Adjustments | February 1, 2018 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | — | $ | 78,052 | ||||
Investment securities | (6,238) | 452,867 | ||||||
Federal Home Loan Bank stock, at cost | — | 20,026 | ||||||
Loans | (48,043) | 1,875,877 | ||||||
Premises and equipment, net | 2,930 | 42,689 | ||||||
Bank owned life insurance | (24) | 65,390 | ||||||
Goodwill | 175,499 | |||||||
Core deposit intangibles (included in other intangible assets, net on the face of the Consolidated Balance Sheets) | 58,100 | 58,100 | ||||||
Other real estate owned (included in other assets on the face of the Consolidated Balance Sheets) | 199 | 4,848 | ||||||
Others assets | $ | 7,054 | 47,158 | |||||
Total assets | $ | 2,820,506 | ||||||
Liabilities | ||||||||
Deposits | $ | 2,498 | $ | 1,840,950 | ||||
Other borrowings | 1,875 | 431,886 | ||||||
Other liabilities | $ | 4,487 | 65,982 | |||||
Total liabilities | $ | 2,338,818 | ||||||
Total consideration paid | $ | 481,688 |
February 1, 2018 | |||||||||||||||||
($ in Thousands) | Acquired Performing Loans | Acquired Impaired Loans | Total | ||||||||||||||
Contractual required principal and interest at acquisition | $ | 1,899,932 | $ | 23,988 | $ | 1,923,920 | |||||||||||
Contractual cash flows not expected to be collected (nonaccretable discount) | — | (1,866) | (1,866) | ||||||||||||||
Expected cash flows at acquisition | 1,899,932 | 22,122 | 1,922,054 | ||||||||||||||
Interest component of expected cash flows (accretable discount) | (41,324) | (4,853) | (46,177) | ||||||||||||||
Fair value of acquired loans | $ | 1,858,608 | $ | 17,269 | $ | 1,875,877 |
($ in Thousands) |
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized (Losses) |
Fair Value | ||||||||||
Investment securities available for sale | ||||||||||||||
Obligations of state and political subdivisions (municipal securities)(a)
|
$ | 529,908 | $ | 16,269 | $ | (18) | $ | 546,160 | ||||||
Residential mortgage-related securities | ||||||||||||||
FNMA / FHLMC | 131,158 | 1,562 | (59) | 132,660 | ||||||||||
GNMA | 982,941 | 3,887 | (1,689) | 985,139 | ||||||||||
Commercial mortgage-related securities | ||||||||||||||
FNMA / FHLMC | 19,929 | 1,799 | — | 21,728 | ||||||||||
GNMA | 1,314,836 | 7,403 | (12,032) | 1,310,207 | ||||||||||
FFELP asset-backed securities | 270,178 | — | (6,485) | 263,693 | ||||||||||
Other debt securities | 3,000 | — | — | 3,000 | ||||||||||
Total investment securities available for sale | $ | 3,251,950 | $ | 30,920 | $ | (20,284) | $ | 3,262,586 | ||||||
Investment securities held to maturity | ||||||||||||||
U.S. Treasury securities | $ | 999 | $ | 19 | $ | — | $ | 1,018 | ||||||
Obligations of state and political subdivisions (municipal securities)(a)
|
1,418,569 | 69,775 | (1,118) | 1,487,227 | ||||||||||
Residential mortgage-related securities | ||||||||||||||
FNMA / FHLMC | 81,676 | 1,759 | (15) | 83,420 | ||||||||||
GNMA | 269,523 | 1,882 | (1,108) | 270,296 | ||||||||||
GNMA commercial mortgage-related securities | 434,317 | 6,308 | (6,122) | 434,503 | ||||||||||
Total investment securities held to maturity | $ | 2,205,083 | $ | 79,744 | $ | (8,363) | $ | 2,276,465 |
($ in Thousands) |
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized (Losses) |
Fair Value | ||||||||||
Investment securities available for sale | ||||||||||||||
U.S. Treasury securities | $ | 1,000 | $ | — | $ | (1) | $ | 999 | ||||||
Residential mortgage-related securities: | ||||||||||||||
FNMA / FHLMC | 296,296 | 2,466 | (3,510) | 295,252 | ||||||||||
GNMA | 2,169,943 | 473 | (41,885) | 2,128,531 | ||||||||||
Private-label | 1,007 | — | (4) | 1,003 | ||||||||||
GNMA commercial mortgage-related securities | 1,273,309 | — | (52,512) | 1,220,797 | ||||||||||
FFELP asset-backed securities | 297,347 | 711 | (698) | 297,360 | ||||||||||
Other debt securities | 3,000 | — | — | 3,000 | ||||||||||
Total investment securities available for sale | $ | 4,041,902 | $ | 3,649 | $ | (98,610) | $ | 3,946,941 | ||||||
Investment securities held to maturity | ||||||||||||||
Obligations of state and political subdivisions (municipal securities) | $ | 1,790,683 | $ | 8,255 | $ | (15,279) | $ | 1,783,659 | ||||||
Residential mortgage-related securities | ||||||||||||||
FNMA / FHLMC | 92,788 | 169 | (1,795) | 91,162 | ||||||||||
GNMA | 351,606 | 1,611 | (8,181) | 345,035 | ||||||||||
GNMA commercial mortgage-related securities | 505,434 | 7,559 | (22,579) | 490,414 | ||||||||||
Total investment securities held to maturity | $ | 2,740,511 | $ | 17,593 | $ | (47,835) | $ | 2,710,271 |
Available for Sale | Held to Maturity | |||||||||||||||||||
($ in Thousands) |
Amortized
Cost |
Fair
Value |
Amortized
Cost |
Fair
Value |
||||||||||||||||
Due in one year or less | $ | 2,795 | $ | 2,800 | $ | 29,033 | $ | 29,218 | ||||||||||||
Due after one year through five years | 32,399 | 32,901 | 82,023 | 83,245 | ||||||||||||||||
Due after five years through ten years | 317,292 | 326,361 | 136,138 | 140,704 | ||||||||||||||||
Due after ten years | 180,422 | 187,098 | 1,172,373 | 1,235,077 | ||||||||||||||||
Total debt securities | 532,908 | 549,160 | 1,419,568 | 1,488,245 | ||||||||||||||||
Residential mortgage-related securities | ||||||||||||||||||||
FNMA / FHLMC | 131,158 | 132,660 | 81,676 | 83,420 | ||||||||||||||||
GNMA | 982,941 | 985,139 | 269,523 | 270,296 | ||||||||||||||||
Commercial mortgage-related securities | ||||||||||||||||||||
FNMA / FHLMC | 19,929 | 21,728 | — | — | ||||||||||||||||
GNMA | 1,314,836 | 1,310,207 | 434,317 | 434,503 | ||||||||||||||||
FFELP asset-backed securities | 270,178 | 263,693 | — | — | ||||||||||||||||
Total investment securities | $ | 3,251,950 | $ | 3,262,586 | $ | 2,205,083 | $ | 2,276,465 | ||||||||||||
Ratio of Fair Value to Amortized Cost | 100.3 | % | 103.2 | % |
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||
Gross gains on available for sale securities | $ | 6,374 | $ | 1,954 | $ | — | |||||
Gross gains on held to maturity securities | — | — | 439 | ||||||||
Total gains | 6,374 | 1,954 | 439 | ||||||||
Gross (losses) on available for sale securities | (13,861) | (3,938) | — | ||||||||
Gross (losses) on held to maturity securities | — | — | (5) | ||||||||
Total (losses) | (13,861) | (3,938) | (5) | ||||||||
Write-up of equity securities without readily determinable fair values | 13,444 | — | — | ||||||||
Investment securities gains (losses), net | $ | 5,957 | $ | (1,985) | $ | 434 | |||||
Proceeds from sales of investment securities | $ | 1,367,476 | $ | 601,130 | $ | 18,467 |
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||||||
($ in Thousands) |
Number
of Securities |
Unrealized
(Losses) |
Fair
Value |
Number
of Securities |
Unrealized
(Losses) |
Fair
Value |
Unrealized (Losses) |
Fair
Value |
|||||||||||||||||||||||||||||||||
Investment securities available for sale | |||||||||||||||||||||||||||||||||||||||||
Obligations of state and political subdivisions (municipal securities) | 4 | $ | (18) | 1,225 | — | $ | — | $ | — | $ | (18) | $ | 1,225 | ||||||||||||||||||||||||||||
Residential mortgage-related securities | |||||||||||||||||||||||||||||||||||||||||
FNMA / FHLMC | — | — | — | 4 | (59) | 34,807 | (59) | 34,807 | |||||||||||||||||||||||||||||||||
GNMA | 18 | (924) | 322,394 | 3 | (766) | 79,461 | (1,689) | 401,856 | |||||||||||||||||||||||||||||||||
GNMA commercial mortgage-related securities | 22 | (810) | 258,218 | 42 | (11,222) | 621,307 | (12,032) | 879,524 | |||||||||||||||||||||||||||||||||
FFELP asset-backed securities | 19 | (6,092) | 250,780 | 2 | (393) | 12,913 | (6,485) | 263,693 | |||||||||||||||||||||||||||||||||
Other debt securities | 2 | — | 2,000 | — | — | — | — | 2,000 | |||||||||||||||||||||||||||||||||
Total | 65 | $ | (7,843) | $ | 834,616 | 51 | $ | (12,440) | $ | 748,487 | $ | (20,284) | $ | 1,583,104 | |||||||||||||||||||||||||||
Investment securities held to maturity | |||||||||||||||||||||||||||||||||||||||||
Obligations of state and political subdivisions (municipal securities) | 52 | $ | (1,105) | $ | 77,562 | 6 | $ | (13) | $ | 2,378 | $ | (1,118) | $ | 79,940 | |||||||||||||||||||||||||||
Residential mortgage-related securities | |||||||||||||||||||||||||||||||||||||||||
FNMA / FHLMC | 1 | (6) | 1,242 | 1 | (9) | 833 | (15) | 2,075 | |||||||||||||||||||||||||||||||||
GNMA | 12 | (1,059) | 187,261 | 8 | (49) | 6,587 | (1,108) | 193,849 | |||||||||||||||||||||||||||||||||
GNMA commercial mortgage-related securities | 2 | (29) | 26,202 | 21 | (6,093) | 357,733 | (6,122) | 383,935 | |||||||||||||||||||||||||||||||||
Total | 67 | $ | (2,199) | $ | 292,267 | 36 | $ | (6,164) | $ | 367,532 | $ | (8,363) | $ | 659,799 |
($ in Thousands) | 2019 | 2018 | |||||||||
Commercial and industrial | $ | 7,354,594 | $ | 7,398,044 | |||||||
Commercial real estate - owner occupied | 911,265 | 920,443 | |||||||||
Commercial and business lending | 8,265,858 | 8,318,487 | |||||||||
Commercial real estate - investor | 3,794,517 | 3,751,554 | |||||||||
Real estate construction | 1,420,900 | 1,335,031 | |||||||||
Commercial real estate lending | 5,215,417 | 5,086,585 | |||||||||
Total commercial | 13,481,275 | 13,405,072 | |||||||||
Residential mortgage | 8,136,980 | 8,277,712 | |||||||||
Home equity | 852,025 | 894,473 | |||||||||
Other consumer | 351,159 | 363,171 | |||||||||
Total consumer | 9,340,164 | 9,535,357 | |||||||||
Total loans(a)(b)
|
$ | 22,821,440 | $ | 22,940,429 |
($ in Thousands) | 2019 | 2018 | ||||||
Balance at beginning of year | $ | 17,831 | $ | 20,260 | ||||
New loans | 3,673 | 3,076 | ||||||
Repayments | (8,053) | (5,017) | ||||||
Change due to status of executive officers and directors | 3,320 | (489) | ||||||
Balance at end of year | $ | 16,772 | $ | 17,831 |
($ in Thousands) | Pass | Special Mention | Potential Problem | Nonaccrual | Total | ||||||||||||||||||||||||
Commercial and industrial | $ | 7,118,448 | $ | 79,525 | $ | 110,308 | $ | 46,312 | $ | 7,354,594 | |||||||||||||||||||
Commercial real estate - owner occupied | 866,193 | 25,115 | 19,889 | 67 | 911,265 | ||||||||||||||||||||||||
Commercial and business lending | 7,984,641 | 104,641 | 130,197 | 46,380 | 8,265,858 | ||||||||||||||||||||||||
Commercial real estate - investor | 3,620,785 | 139,873 | 29,449 | 4,409 | 3,794,517 | ||||||||||||||||||||||||
Real estate construction | 1,420,374 | 33 | — | 493 | 1,420,900 | ||||||||||||||||||||||||
Commercial real estate lending | 5,041,159 | 139,906 | 29,449 | 4,902 | 5,215,417 | ||||||||||||||||||||||||
Total commercial | 13,025,800 | 244,547 | 159,646 | 51,282 | 13,481,275 | ||||||||||||||||||||||||
Residential mortgage | 8,077,122 | 563 | 1,451 | 57,844 | 8,136,980 | ||||||||||||||||||||||||
Home equity | 841,757 | 1,164 | — | 9,104 | 852,025 | ||||||||||||||||||||||||
Other consumer | 350,260 | 748 | — | 152 | 351,159 | ||||||||||||||||||||||||
Total consumer | 9,269,139 | 2,475 | 1,451 | 67,099 | 9,340,164 | ||||||||||||||||||||||||
Total loans(a)
|
$ | 22,294,939 | $ | 247,022 | $ | 161,097 | $ | 118,380 | $ | 22,821,440 |
($ in Thousands) | Pass | Special Mention | Potential Problem | Nonaccrual | Total | ||||||||||||||||||||||||
Commercial and industrial | $ | 7,162,370 | $ | 78,075 | $ | 116,578 | $ | 41,021 | $ | 7,398,044 | |||||||||||||||||||
Commercial real estate - owner occupied | 854,265 | 6,257 | 55,964 | 3,957 | 920,443 | ||||||||||||||||||||||||
Commercial and business lending | 8,016,635 | 84,332 | 172,542 | 44,978 | 8,318,487 | ||||||||||||||||||||||||
Commercial real estate - investor | 3,653,642 | 28,479 | 67,481 | 1,952 | 3,751,554 | ||||||||||||||||||||||||
Real estate construction | 1,321,447 | 8,771 | 3,834 | 979 | 1,335,031 | ||||||||||||||||||||||||
Commercial real estate lending | 4,975,089 | 37,249 | 71,315 | 2,931 | 5,086,585 | ||||||||||||||||||||||||
Total commercial | 12,991,724 | 121,582 | 243,856 | 47,909 | 13,405,072 | ||||||||||||||||||||||||
Residential mortgage | 8,203,729 | 434 | 5,975 | 67,574 | 8,277,712 | ||||||||||||||||||||||||
Home equity | 880,808 | 1,223 | 103 | 12,339 | 894,473 | ||||||||||||||||||||||||
Other consumer | 362,343 | 749 | — | 79 | 363,171 | ||||||||||||||||||||||||
Total consumer | 9,446,881 | 2,406 | 6,078 | 79,992 | 9,535,357 | ||||||||||||||||||||||||
Total loans | $ | 22,438,605 | $ | 123,988 | $ | 249,935 | $ | 127,901 | $ | 22,940,429 |
($ in Thousands) | Current |
30-59 Days
Past Due |
60-89 Days
Past Due |
90 Days or More
Past Due and Still Accruing |
Nonaccrual(a)
|
Total | ||||||||||||||||||||||||||
Commercial and industrial | $ | 7,307,118 | $ | 576 | $ | 245 | $ | 342 | $ | 46,312 | $ | 7,354,594 | ||||||||||||||||||||
Commercial real estate - owner occupied | 909,828 | 1,369 | — | — | 67 | 911,265 | ||||||||||||||||||||||||||
Commercial and business lending | 8,216,947 | 1,945 | 245 | 342 | 46,380 | 8,265,858 | ||||||||||||||||||||||||||
Commercial real estate - investor | 3,788,296 | 1,812 | — | — | 4,409 | 3,794,517 | ||||||||||||||||||||||||||
Real estate construction | 1,420,310 | 64 | 33 | — | 493 | 1,420,900 | ||||||||||||||||||||||||||
Commercial real estate lending | 5,208,606 | 1,876 | 33 | — | 4,902 | 5,215,417 | ||||||||||||||||||||||||||
Total commercial | 13,425,552 | 3,821 | 278 | 342 | 51,282 | 13,481,275 | ||||||||||||||||||||||||||
Residential mortgage | 8,069,863 | 8,749 | 525 | — | 57,844 | 8,136,980 | ||||||||||||||||||||||||||
Home equity | 837,274 | 4,483 | 1,164 | — | 9,104 | 852,025 | ||||||||||||||||||||||||||
Other consumer | 347,007 | 1,135 | 949 | 1,917 | 152 | 351,159 | ||||||||||||||||||||||||||
Total consumer | 9,254,144 | 14,366 | 2,638 | 1,917 | 67,099 | 9,340,164 | ||||||||||||||||||||||||||
Total loans(b)
|
$ | 22,679,696 | $ | 18,188 | $ | 2,916 | $ | 2,259 | $ | 118,380 | $ | 22,821,440 |
($ in Thousands) | Current |
30-59 Days
Past Due |
60-89 Days
Past Due |
90 Days or More
Past Due and Still Accruing |
Nonaccrual(a)
|
Total | ||||||||||||||||||||||||||
Commercial and industrial | $ | 7,356,187 | $ | 187 | $ | 338 | $ | 311 | $ | 41,021 | $ | 7,398,044 | ||||||||||||||||||||
Commercial real estate - owner occupied | 913,787 | 2,580 | 119 | — | 3,957 | 920,443 | ||||||||||||||||||||||||||
Commercial and business lending | 8,269,974 | 2,767 | 457 | 311 | 44,978 | 8,318,487 | ||||||||||||||||||||||||||
Commercial real estate - investor | 3,745,835 | 2,954 | 813 | — | 1,952 | 3,751,554 | ||||||||||||||||||||||||||
Real estate construction | 1,333,722 | 330 | — | — | 979 | 1,335,031 | ||||||||||||||||||||||||||
Commercial real estate lending | 5,079,557 | 3,284 | 813 | — | 2,931 | 5,086,585 | ||||||||||||||||||||||||||
Total commercial | 13,349,531 | 6,051 | 1,270 | 311 | 47,909 | 13,405,072 | ||||||||||||||||||||||||||
Residential mortgage | 8,200,432 | 9,272 | 434 | — | 67,574 | 8,277,712 | ||||||||||||||||||||||||||
Home equity | 876,085 | 4,826 | 1,223 | — | 12,339 | 894,473 | ||||||||||||||||||||||||||
Other consumer | 358,970 | 1,401 | 868 | 1,853 | 79 | 363,171 | ||||||||||||||||||||||||||
Total consumer | 9,435,487 | 15,499 | 2,525 | 1,853 | 79,992 | 9,535,357 | ||||||||||||||||||||||||||
Total loans | $ | 22,785,019 | $ | 21,550 | $ | 3,795 | $ | 2,165 | $ | 127,901 | $ | 22,940,429 |
($ in Thousands) |
Recorded
Investment |
Unpaid
Principal Balance |
Related
Allowance |
Average
Recorded Investment |
Interest
Income Recognized |
||||||||||||||||||||||||
Loans with a related allowance | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 47,249 | $ | 63,346 | $ | 12,010 | $ | 45,290 | $ | 1,832 | |||||||||||||||||||
Commercial real estate - owner occupied | 1,676 | 1,682 | 19 | 1,774 | 88 | ||||||||||||||||||||||||
Commercial and business lending | 48,924 | 65,028 | 12,029 | 47,064 | 1,919 | ||||||||||||||||||||||||
Commercial real estate - investor | 928 | 2,104 | 15 | 950 | 15 | ||||||||||||||||||||||||
Real estate construction | 477 | 559 | 67 | 494 | 30 | ||||||||||||||||||||||||
Commercial real estate lending | 1,405 | 2,663 | 82 | 1,445 | 45 | ||||||||||||||||||||||||
Total commercial | 50,329 | 67,691 | 12,111 | 48,509 | 1,965 | ||||||||||||||||||||||||
Residential mortgage | 21,450 | 22,625 | 2,740 | 23,721 | 856 | ||||||||||||||||||||||||
Home equity | 3,076 | 3,468 | 1,190 | 3,756 | 191 | ||||||||||||||||||||||||
Other consumer | 1,247 | 1,249 | 125 | 1,250 | 1 | ||||||||||||||||||||||||
Total consumer | 25,773 | 27,342 | 4,055 | 28,726 | 1,047 | ||||||||||||||||||||||||
Total loans | $ | 76,102 | $ | 95,033 | $ | 16,165 | $ | 77,235 | $ | 3,012 | |||||||||||||||||||
Loans with no related allowance | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 14,787 | $ | 33,438 | $ | — | $ | 20,502 | $ | 63 | |||||||||||||||||||
Commercial real estate - owner occupied | — | — | — | — | — | ||||||||||||||||||||||||
Commercial and business lending | 14,787 | 33,438 | — | 20,502 | 63 | ||||||||||||||||||||||||
Commercial real estate - investor | 3,705 | 3,705 | — | 3,980 | 159 | ||||||||||||||||||||||||
Real estate construction | — | — | — | — | — | ||||||||||||||||||||||||
Commercial real estate lending | 3,705 | 3,705 | — | 3,980 | 159 | ||||||||||||||||||||||||
Total commercial | 18,491 | 37,142 | — | 24,482 | 222 | ||||||||||||||||||||||||
Residential mortgage | 14,104 | 14,461 | — | 10,962 | 373 | ||||||||||||||||||||||||
Home equity | 1,346 | 1,383 | — | 1,017 | 21 | ||||||||||||||||||||||||
Other consumer | — | — | — | — | — | ||||||||||||||||||||||||
Total consumer | 15,450 | 15,845 | — | 11,979 | 394 | ||||||||||||||||||||||||
Total loans | $ | 33,941 | $ | 52,987 | $ | — | $ | 36,462 | $ | 616 | |||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 62,035 | $ | 96,784 | $ | 12,010 | $ | 65,792 | $ | 1,895 | |||||||||||||||||||
Commercial real estate - owner occupied | 1,676 | 1,682 | 19 | 1,774 | 88 | ||||||||||||||||||||||||
Commercial and business lending | 63,711 | 98,466 | 12,029 | 67,566 | 1,982 | ||||||||||||||||||||||||
Commercial real estate - investor | 4,633 | 5,808 | 15 | 4,931 | 174 | ||||||||||||||||||||||||
Real estate construction | 477 | 559 | 67 | 494 | 30 | ||||||||||||||||||||||||
Commercial real estate lending | 5,110 | 6,367 | 82 | 5,425 | 204 | ||||||||||||||||||||||||
Total commercial | 68,820 | 104,833 | 12,111 | 72,991 | 2,186 | ||||||||||||||||||||||||
Residential mortgage | 35,554 | 37,087 | 2,740 | 34,683 | 1,229 | ||||||||||||||||||||||||
Home equity | 4,422 | 4,851 | 1,190 | 4,773 | 211 | ||||||||||||||||||||||||
Other consumer | 1,247 | 1,249 | 125 | 1,250 | 1 | ||||||||||||||||||||||||
Total consumer | 41,223 | 43,187 | 4,055 | 40,706 | 1,441 | ||||||||||||||||||||||||
Total loans(a)
|
$ | 110,043 | $ | 148,020 | $ | 16,165 | $ | 113,697 | $ | 3,628 |
($ in Thousands) |
Recorded
Investment |
Unpaid
Principal Balance |
Related
Allowance |
Average
Recorded Investment |
Interest
Income Recognized |
||||||||||||||||||||||||
Loans with a related allowance | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 40,747 | $ | 42,131 | $ | 5,721 | $ | 52,461 | $ | 1,167 | |||||||||||||||||||
Commercial real estate - owner occupied | 2,080 | 2,087 | 24 | 2,179 | 104 | ||||||||||||||||||||||||
Commercial and business lending | 42,827 | 44,218 | 5,745 | 54,640 | 1,271 | ||||||||||||||||||||||||
Commercial real estate - investor | 799 | 805 | 28 | 827 | 38 | ||||||||||||||||||||||||
Real estate construction | 510 | 589 | 75 | 533 | 32 | ||||||||||||||||||||||||
Commercial real estate lending | 1,309 | 1,394 | 103 | 1,360 | 70 | ||||||||||||||||||||||||
Total commercial | 44,136 | 45,612 | 5,848 | 56,000 | 1,341 | ||||||||||||||||||||||||
Residential mortgage | 41,691 | 45,149 | 6,023 | 42,687 | 1,789 | ||||||||||||||||||||||||
Home equity | 9,601 | 10,539 | 3,312 | 10,209 | 566 | ||||||||||||||||||||||||
Other consumer | 1,181 | 1,183 | 121 | 1,184 | 3 | ||||||||||||||||||||||||
Total consumer | 52,473 | 56,871 | 9,456 | 54,080 | 2,358 | ||||||||||||||||||||||||
Total loans | $ | 96,609 | $ | 102,483 | $ | 15,304 | $ | 110,079 | $ | 3,699 | |||||||||||||||||||
Loans with no related allowance | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 22,406 | $ | 45,024 | $ | — | $ | 21,352 | $ | (344) | |||||||||||||||||||
Commercial real estate - owner occupied | 3,772 | 4,823 | — | 3,975 | — | ||||||||||||||||||||||||
Commercial and business lending | 26,178 | 49,847 | — | 25,327 | (344) | ||||||||||||||||||||||||
Commercial real estate - investor | 1,585 | 2,820 | — | 980 | 68 | ||||||||||||||||||||||||
Real estate construction | — | — | — | — | — | ||||||||||||||||||||||||
Commercial real estate lending | 1,585 | 2,820 | — | 980 | 68 | ||||||||||||||||||||||||
Total commercial | 27,763 | 52,667 | — | 26,307 | (276) | ||||||||||||||||||||||||
Residential mortgage | 8,795 | 9,074 | — | 8,790 | 203 | ||||||||||||||||||||||||
Home equity | 523 | 542 | — | 530 | — | ||||||||||||||||||||||||
Other consumer | — | — | — | — | — | ||||||||||||||||||||||||
Total consumer | 9,318 | 9,616 | — | 9,320 | 203 | ||||||||||||||||||||||||
Total loans | $ | 37,081 | $ | 62,283 | $ | — | $ | 35,627 | $ | (73) | |||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 63,153 | $ | 87,155 | $ | 5,721 | $ | 73,813 | $ | 823 | |||||||||||||||||||
Commercial real estate - owner occupied | 5,852 | 6,910 | 24 | 6,154 | 104 | ||||||||||||||||||||||||
Commercial and business lending | 69,005 | 94,065 | 5,745 | 79,967 | 927 | ||||||||||||||||||||||||
Commercial real estate - investor | 2,384 | 3,625 | 28 | 1,807 | 106 | ||||||||||||||||||||||||
Real estate construction | 510 | 589 | 75 | 533 | 32 | ||||||||||||||||||||||||
Commercial real estate lending | 2,894 | 4,214 | 103 | 2,340 | 138 | ||||||||||||||||||||||||
Total commercial | 71,899 | 98,279 | 5,848 | 82,307 | 1,065 | ||||||||||||||||||||||||
Residential mortgage | 50,486 | 54,223 | 6,023 | 51,477 | 1,992 | ||||||||||||||||||||||||
Home equity | 10,124 | 11,081 | 3,312 | 10,739 | 566 | ||||||||||||||||||||||||
Other consumer | 1,181 | 1,183 | 121 | 1,184 | 3 | ||||||||||||||||||||||||
Total consumer | 61,791 | 66,487 | 9,456 | 63,400 | 2,561 | ||||||||||||||||||||||||
Total loans(a)
|
$ | 133,690 | $ | 164,766 | $ | 15,304 | $ | 145,707 | $ | 3,626 |
December 31, 2019 | December 31, 2018 | December 31, 2017 | |||||||||||||||||||||||||||
($ in Thousands) |
Performing
Restructured Loans |
Nonaccrual
Restructured
Loans(a)
|
Performing
Restructured Loans |
Nonaccrual
Restructured
Loans(a)
|
Performing
Restructured Loans |
Nonaccrual
Restructured
Loans(a)
|
|||||||||||||||||||||||
Commercial and industrial | $ | 16,678 | $ | 7,376 | $ | 25,478 | $ | 249 | $ | 30,047 | $ | 1,776 | |||||||||||||||||
Commercial real estate - owner occupied | 1,676 | — | 2,080 | — | 3,989 | — | |||||||||||||||||||||||
Commercial real estate - investor | 293 | — | 799 | 933 | 14,389 | — | |||||||||||||||||||||||
Real estate construction | 298 | 179 | 311 | 198 | 310 | 157 | |||||||||||||||||||||||
Residential mortgage | 3,955 | 13,035 | 16,036 | 22,279 | 17,068 | 18,991 | |||||||||||||||||||||||
Home equity | 1,896 | 1,904 | 7,385 | 2,627 | 7,705 | 2,537 | |||||||||||||||||||||||
Other consumer | 1,246 | 1 | 1,174 | 6 | 1,110 | 25 | |||||||||||||||||||||||
Total restructured loans(b)
|
$ | 26,041 | $ | 22,494 | $ | 53,263 | $ | 26,292 | $ | 74,618 | $ | 23,486 |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in Thousands) |
Number
of Loans |
Recorded
Investment(a)
|
Unpaid
Principal
Balance(b)
|
Number
of Loans |
Recorded
Investment(a)
|
Unpaid
Principal
Balance(b)
|
Number
of Loans |
Recorded
Investment(a)
|
Unpaid
Principal
Balance(b)
|
||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 6 | $ | 7,588 | $ | 7,703 | 5 | $ | 1,315 | $ | 1,330 | 8 | $ | 3,991 | $ | 6,339 | ||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | — | — | — | — | — | — | 2 | 690 | 690 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - investor | — | — | — | 2 | 1,393 | 1,472 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Real estate construction | 1 | 77 | 77 | 1 | 78 | 80 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 53 | 7,436 | 7,517 | 41 | 6,977 | 7,210 | 45 | 4,238 | 4,364 | ||||||||||||||||||||||||||||||||||||||||||||
Home equity | 24 | 831 | 845 | 34 | 1,649 | 1,681 | 22 | 507 | 507 | ||||||||||||||||||||||||||||||||||||||||||||
Other consumer | 1 | 8 | 8 | 3 | 17 | 19 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total | 85 | $ | 15,940 | $ | 16,150 | 86 | $ | 11,429 | $ | 11,792 | 77 | $ | 9,426 | $ | 11,900 |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
($ in Thousands) |
Number of
Loans |
Recorded
Investment |
Number of
Loans |
Recorded
Investment |
Number of
Loans |
Recorded
Investment |
|||||||||||||||||||||||||||||
Commercial and industrial | — | $ | — | 3 | $ | — | 2 | $ | — | ||||||||||||||||||||||||||
Commercial real estate — investor | 1 | 461 | — | — | — | — | |||||||||||||||||||||||||||||
Residential mortgage | 38 | 5,630 | 20 | 3,553 | 36 | 3,137 | |||||||||||||||||||||||||||||
Home equity | 27 | 868 | 32 | 1,688 | 27 | 735 | |||||||||||||||||||||||||||||
Other consumer | — | — | — | — | 1 | 7 | |||||||||||||||||||||||||||||
Total | 66 | $ | 6,959 | 55 | $ | 5,241 | 66 | $ | 3,879 |
($ 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, 2018 | $ | 108,835 | $ | 9,255 | $ | 40,844 | $ | 28,240 | $ | 25,595 | $ | 19,266 | $ | 5,988 | $ | 238,023 | ||||||||||
Charge offs | (63,315) | (222) | — | (60) | (3,322) | (1,846) | (5,548) | (74,313) | ||||||||||||||||||
Recoveries | 11,875 | 2,795 | 31 | 302 | 692 | 2,599 | 868 | 19,161 | ||||||||||||||||||
Net charge offs | (51,441) | 2,573 | 31 | 243 | (2,630) | 753 | (4,681) | (55,152) | ||||||||||||||||||
Provision for loan losses | 33,738 | (1,543) | (361) | (3,568) | (6,005) | (9,093) | 5,332 | 18,500 | ||||||||||||||||||
December 31, 2019 | $ | 91,133 | $ | 10,284 | $ | 40,514 | $ | 24,915 | $ | 16,960 | $ | 10,926 | $ | 6,639 | $ | 201,371 | ||||||||||
Allowance for loan losses | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 12,010 | $ | 19 | $ | 15 | $ | 67 | $ | 2,740 | $ | 1,190 | $ | 125 | $ | 16,165 | ||||||||||
Collectively evaluated for impairment | 79,123 | 10,265 | 40,498 | 24,848 | 14,220 | 9,737 | 6,514 | 185,205 | ||||||||||||||||||
Total allowance for loan losses | $ | 91,133 | $ | 10,284 | $ | 40,514 | $ | 24,915 | $ | 16,960 | $ | 10,926 | $ | 6,639 | $ | 201,371 | ||||||||||
Loans | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 62,035 | $ | 1,676 | $ | 4,633 | $ | 477 | $ | 35,554 | $ | 4,422 | $ | 1,247 | $ | 110,043 | ||||||||||
Collectively evaluated for impairment | 7,292,217 | 909,010 | 3,789,755 | 1,420,416 | 8,100,958 | 847,577 | 349,912 | 22,709,845 | ||||||||||||||||||
Acquired and accounted for under ASC 310-30(a)
|
342 | 579 | 129 | 7 | 469 | 26 | — | 1,552 | ||||||||||||||||||
Total loans | $ | 7,354,594 | $ | 911,265 | $ | 3,794,517 | $ | 1,420,900 | $ | 8,136,980 | $ | 852,025 | $ | 351,159 | $ | 22,821,440 |
($ 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, 2017 | $ | 123,068 | $ | 10,352 | $ | 41,059 | $ | 34,370 | $ | 29,607 | $ | 22,126 | $ | 5,298 | $ | 265,880 | ||||||||||
Charge offs | (30,837) | (1,363) | (7,914) | (298) | (1,627) | (3,236) | (5,261) | (50,536) | ||||||||||||||||||
Recoveries | 13,714 | 639 | 668 | 446 | 1,271 | 2,628 | 812 | 20,179 | ||||||||||||||||||
Net charge offs | (17,123) | (724) | (7,246) | 149 | (355) | (608) | (4,448) | (30,358) | ||||||||||||||||||
Provision for loan losses | 2,890 | (373) | 7,031 | (6,279) | (3,657) | (2,252) | 5,138 | 2,500 | ||||||||||||||||||
December 31, 2018 | $ | 108,835 | $ | 9,255 | $ | 40,844 | $ | 28,240 | $ | 25,595 | $ | 19,266 | $ | 5,988 | $ | 238,023 | ||||||||||
Allowance for loan losses | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,721 | $ | 24 | $ | 28 | $ | 75 | $ | 6,023 | $ | 3,312 | $ | 121 | $ | 15,304 | ||||||||||
Collectively evaluated for impairment | 103,114 | 9,231 | 40,816 | 28,165 | 19,572 | 15,954 | 5,867 | 222,719 | ||||||||||||||||||
Total allowance for loan losses | $ | 108,835 | $ | 9,255 | $ | 40,844 | $ | 28,240 | $ | 25,595 | $ | 19,266 | $ | 5,988 | $ | 238,023 | ||||||||||
Loans | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 63,153 | $ | 5,852 | $ | 2,384 | $ | 510 | $ | 50,486 | $ | 10,124 | $ | 1,181 | $ | 133,690 | ||||||||||
Collectively evaluated for impairment | 7,331,898 | 913,708 | 3,748,883 | 1,334,500 | 8,226,642 | 884,266 | 361,990 | 22,801,887 | ||||||||||||||||||
Acquired and accounted for under ASC 310-30(a)
|
2,994 | 883 | 287 | 21 | 584 | 83 | — | 4,853 | ||||||||||||||||||
Total loans | $ | 7,398,044 | $ | 920,443 | $ | 3,751,554 | $ | 1,335,031 | $ | 8,277,712 | $ | 894,473 | $ | 363,171 | $ | 22,940,429 |
Years Ended December 31, | |||||||||||
($ in Millions) | 2019 | 2018 | |||||||||
Balance at beginning of period | $ | 12 | $ | 27 | |||||||
Charge offs | (50) | (24) | |||||||||
Recoveries | 5 | 6 | |||||||||
Net Charge offs | (44) | (17) | |||||||||
Provision for loan losses | 45 | 2 | |||||||||
Balance at end of period | $ | 12 | $ | 12 | |||||||
Allowance for loan losses | |||||||||||
Individually evaluated for impairment | $ | 3 | $ | — | |||||||
Collectively evaluated for impairment | 9 | 12 | |||||||||
Total allowance for loan losses | $ | 12 | $ | 12 | |||||||
Oil & Gas Allowance for loan losses to Total Oil & Gas Loans | 2.56 | % | 1.62 | % | |||||||
Loans | |||||||||||
Individually evaluated for impairment | $ | 23 | $ | 22 | |||||||
Collectively evaluated for impairment | 460 | 725 | |||||||||
Total loans | $ | 484 | $ | 747 |
Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Allowance for Unfunded Commitments | |||||||||||||||||
Balance at beginning of period | $ | 24,336 | $ | 24,400 | $ | 25,400 | |||||||||||
Provision for unfunded commitments | (2,500) | (2,500) | (1,000) | ||||||||||||||
Amount recorded at acquisition | 70 | 2,436 | — | ||||||||||||||
Balance at end of period | $ | 21,907 | $ | 24,336 | $ | 24,400 |
($ in Thousands) | Year Ended December 31, 2019 | Year Ended December 31, 2018 | |||||||||
Changes in Accretable Yield | |||||||||||
Balance at beginning of period | $ | 1,482 | $ | — | |||||||
Purchases | — | 4,853 | |||||||||
Accretion | (940) | (4,954) | |||||||||
Net reclassification from non-accretable yield | 23 | 1,605 | |||||||||
Other(a)
|
— | (22) | |||||||||
Balance at end of period | $ | 568 | $ | 1,482 |
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Core deposit intangibles | |||||||||||||||||
Gross carrying amount | $ | 80,730 | $ | 58,100 | $ | 4,385 | |||||||||||
Accumulated amortization | (12,456) | (5,326) | (4,385) | ||||||||||||||
Net book value | $ | 68,274 | $ | 52,774 | $ | — | |||||||||||
Additions during the period | $ | 22,630 | $ | 58,100 | $ | — | |||||||||||
Amortization during the year | $ | 7,130 | $ | 5,326 | $ | 112 | |||||||||||
Other intangibles | |||||||||||||||||
Gross carrying amount | $ | 44,887 | $ | 44,931 | $ | 34,572 | |||||||||||
Reductions due to sale | (217) | (43) | — | ||||||||||||||
Accumulated amortization | (24,643) | (21,825) | (18,992) | ||||||||||||||
Net book value | $ | 20,027 | $ | 23,062 | $ | 15,580 | |||||||||||
Additions during the period | $ | — | $ | 10,359 | $ | 2,162 | |||||||||||
Amortization during the year | $ | 2,818 | $ | 2,833 | $ | 1,847 |
($ in Thousands) | 2019 | 2018 | 2017 | |||||||||||||||||||||||
Mortgage servicing rights | ||||||||||||||||||||||||||
Mortgage servicing rights at beginning of year | $ | 68,433 | $ | 59,168 | $ | 62,085 | ||||||||||||||||||||
Additions from acquisition | — | 8,136 | — | |||||||||||||||||||||||
Additions | 11,606 | 10,722 | 7,167 | |||||||||||||||||||||||
Amortization | (12,432) | (9,594) | (10,084) | |||||||||||||||||||||||
Mortgage servicing rights at end of year | $ | 67,607 | $ | 68,433 | $ | 59,168 | ||||||||||||||||||||
Valuation allowance at beginning of year | (239) | (784) | (609) | |||||||||||||||||||||||
(Additions) recoveries, net | (63) | 545 | (175) | |||||||||||||||||||||||
Valuation allowance at end of year | (302) | (239) | (784) | |||||||||||||||||||||||
Mortgage servicing rights, net | $ | 67,306 | $ | 68,193 | $ | 58,384 | ||||||||||||||||||||
Fair value of mortgage servicing rights | $ | 72,532 | $ | 81,012 | $ | 64,387 | ||||||||||||||||||||
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) | $ | 8,484,977 | $ | 8,600,983 | $ | 7,646,846 | ||||||||||||||||||||
Mortgage servicing rights, net to servicing portfolio | 0.79 | % | 0.79 | % | 0.76 | % | ||||||||||||||||||||
Mortgage servicing rights expense(a)
|
$ | 12,494 | $ | 9,049 | $ | 10,259 |
($ in Thousands) | Core Deposit Intangibles | Other Intangibles | Mortgage Servicing Rights | ||||||||||||||
Year ending December 31, | |||||||||||||||||
2020 | $ | 8,073 | $ | 2,681 | $ | 10,628 | |||||||||||
2021 | 8,073 | 2,656 | 11,481 | ||||||||||||||
2022 | 8,073 | 2,633 | 9,576 | ||||||||||||||
2023 | 8,073 | 2,614 | 7,967 | ||||||||||||||
2024 | 8,073 | 2,594 | 6,621 | ||||||||||||||
Beyond 2024 | 27,909 | 6,850 | 21,336 | ||||||||||||||
Total Estimated Amortization Expense | $ | 68,274 | $ | 20,027 | $ | 67,607 |
2019 | 2018 | ||||||||||||||||||||||
($ in Thousands)
|
Estimated
Useful Lives |
Cost |
Accumulated
Depreciation |
Net Book
Value |
Net Book
Value |
||||||||||||||||||
Land | — | $ | 69,649 | $ | — | $ | 69,649 | $ | 67,737 | ||||||||||||||
Land improvements | 3 – 15 years | 17,868 | 8,513 | 9,355 | 7,212 | ||||||||||||||||||
Buildings and improvements | 5 – 39 years | 394,191 | 163,833 | 230,358 | 212,536 | ||||||||||||||||||
Computers | 3 – 5 years | 47,291 | 34,049 | 13,242 | 12,392 | ||||||||||||||||||
Furniture, fixtures and other equipment | 3 – 15 years | 176,023 | 122,681 | 53,342 | 49,891 | ||||||||||||||||||
Operating leases | — | 53,982 | 8,602 | $ | 45,381 | $ | — | ||||||||||||||||
Leasehold improvements | 3 – 15 years | 36,842 | 22,884 | 13,958 | 13,457 | ||||||||||||||||||
Total premises and equipment | $ | 795,846 | $ | 360,562 | $ | 435,284 | $ | 363,225 |
($ in Thousands) | Twelve Months Ended December 31, 2019 | |||||||
Operating Lease Costs | $ | 11,006 | ||||||
Finance Lease Costs | 36 | |||||||
Operating Lease Cash Flows | 11,305 | |||||||
Finance Lease Cash Flows | 35 |
December 31, 2019 | |||||||||||
($ in Thousands) | Amount | Consolidated Balance Sheets Category | |||||||||
Operating lease right-of-use asset | $ | 45,381 | Premises and equipment | ||||||||
Finance lease right-of-use asset | 2,188 | Other assets | |||||||||
Operating lease liability | 49,292 | Accrued expenses and other liabilities | |||||||||
Finance lease liability | 2,209 | Other long-term funding |
December 31, 2019 | |||||||||||||||||
($ in Thousands) | Lease payments | Weighted-average lease term (in years) | Weighted-average discount rate | ||||||||||||||
Operating leases | |||||||||||||||||
Equipment | $ | 46 | 0.83 | 2.72 | % | ||||||||||||
Retail and corporate offices | 48,940 | 6.49 | 3.34 | % | |||||||||||||
Land | 6,594 | 9.57 | 3.21 | % | |||||||||||||
Total operating leases | $ | 55,580 | 6.83 | 3.32 | % | ||||||||||||
Finance leases | |||||||||||||||||
Land | $ | 4,827 | 39.67 | 3.99 | % | ||||||||||||
Total finance leases | $ | 4,827 | 39.67 | 3.99 | % |
($ in Thousands) | Operating Leases | Finance Leases | Total Leases | ||||||||
Twelve Months Ending December 31, 2020 | $ | 10,662 | $ | 85 | $ | 10,747 | |||||
2021 | 10,136 | 85 | 10,221 | ||||||||
2022 | 7,854 | 85 | 7,939 | ||||||||
2023 | 5,625 | 85 | 5,710 | ||||||||
2024 | 4,988 | 88 | 5,076 | ||||||||
Beyond 2024 | 16,316 | 4,398 | 20,714 | ||||||||
Total lease payments | $ | 55,580 | $ | 4,827 | $ | 60,407 | |||||
Less: interest | 6,288 | 2,617 | 8,905 | ||||||||
Present value of lease payments | $ | 49,292 | $ | 2,209 | $ | 51,501 |
($ in Thousands) | Payments | Receipts | ||||||
2020 | $ | 9,876 | $ | 3,189 | ||||
2021 | 9,976 | 2,903 | ||||||
2022 | 7,822 | 2,127 | ||||||
2023 | 5,977 | 1,723 | ||||||
2024 | 5,315 | 1,583 | ||||||
Thereafter | 21,393 | 8,081 | ||||||
Total | $ | 60,359 | $ | 19,606 |
($ in Thousands) | 2019 | 2018 | ||||||
Noninterest-bearing demand | $ | 5,450,709 | $ | 5,698,530 | ||||
Savings | 2,735,036 | 2,012,841 | ||||||
Interest-bearing demand | 5,329,717 | 5,336,952 | ||||||
Money market | 7,640,798 | 9,033,669 | ||||||
Brokered CDs | 5,964 | 192,234 | ||||||
Other time | 2,616,839 | 2,623,167 | ||||||
Total deposits | $ | 23,779,064 | $ | 24,897,393 |
Maturities During Year Ending December 31, | ($ in Thousands) | ||||
2020 | $ | 1,947,004 | |||
2021 | 477,780 | ||||
2022 | 97,141 | ||||
2023 | 55,028 | ||||
2024 | 45,510 | ||||
Thereafter | 340 | ||||
Total | $ | 2,622,803 |
($ in Thousands) | December 31, 2019 | December 31, 2018 | ||||||
Short-Term Funding | ||||||||
Federal funds purchased | $ | 362,000 | $ | 19,710 | ||||
Securities sold under agreements to repurchase | 71,097 | 91,941 | ||||||
Federal funds purchased and securities sold under agreements to repurchase | 433,097 | 111,651 | ||||||
Commercial paper | 32,016 | 45,423 | ||||||
Total short-term funding | $ | 465,113 | $ | 157,074 | ||||
Long-Term Funding | ||||||||
Corporation senior notes, at par, due 2019 | $ | — | $ | 250,000 | ||||
Bank senior notes, at par, due 2021 | 300,000 | 300,000 | ||||||
Corporation subordinated notes, at par, due 2025 | 250,000 | 250,000 | ||||||
Finance leases | 2,209 | — | ||||||
Capitalized costs | (2,866) | (4,389) | ||||||
Total long-term funding | 549,343 | 795,611 | ||||||
Total short and long-term funding, excluding FHLB advances
|
$ | 1,014,456 | $ | 952,685 | ||||
FHLB Advances | ||||||||
Short-term FHLB advances | $ | 520,000 | $ | 900,000 | ||||
Long-term FHLB advances | 2,660,967 | 2,674,371 | ||||||
Total FHLB advances | $ | 3,180,967 | $ | 3,574,371 | ||||
Total short and long-term funding
|
$ | 4,195,422 | $ | 4,527,056 |
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||||||||||||
($ in Thousands) | Overnight and Continuous | Up to 30 days | 30-90 days | Greater than 90 days | Total | ||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Repurchase agreements | |||||||||||||||||||||||||||||
Agency mortgage-related securities
|
$ | 71,097 | $ | — | $ | — | $ | — | $ | 71,097 | |||||||||||||||||||
Total | $ | 71,097 | $ | — | $ | — | $ | — | $ | 71,097 | |||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||||
Repurchase agreements | |||||||||||||||||||||||||||||
Agency mortgage-related securities
|
$ | 91,941 | $ | — | $ | — | $ | — | $ | 91,941 | |||||||||||||||||||
Total | $ | 91,941 | $ | — | $ | — | $ | — | $ | 91,941 |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||
($ in Thousands) | Amount | Weighted Average Contractual Coupon Rate | Amount | Weighted Average Contractual Coupon Rate | |||||||||||||||||||||||||||||||
Maturity or put date 1 year or less | $ | 2,055,056 | 2.19 | % | $ | 2,262,584 | 2.06 | % | |||||||||||||||||||||||||||
After 1 but within 2 | 14,099 | 2.95 | % | 1,285,039 | 2.39 | % | |||||||||||||||||||||||||||||
After 2 but within 3 | 504,154 | 2.12 | % | 14,393 | 2.98 | % | |||||||||||||||||||||||||||||
After 3 years | 607,657 | 2.29 | % | 12,354 | 4.55 | % | |||||||||||||||||||||||||||||
FHLB advances and overall rate | $ | 3,180,967 | 2.20 | % | $ | 3,574,371 | 2.19 | % |
Year | ($ in Thousands) | ||||
2020 | $ | 85,095 | |||
2021 | 312,700 | ||||
2022 | 504,193 | ||||
2023 | 202,572 | ||||
2024 | 250,673 | ||||
Thereafter | 1,855,075 | ||||
Total long-term funding | $ | 3,210,310 |
2019 | 2018 | 2017 | |||||||||
Dividend yield | 3.30 | % | 2.50 | % | 2.00 | % | |||||
Risk-free interest rate | 2.60 | % | 2.60 | % | 2.00 | % | |||||
Weighted average expected volatility | 24.00 | % | 22.00 | % | 25.00 | % | |||||
Weighted average expected life | 5.75 years | 5.75 years | 5.5 years | ||||||||
Weighted average per share fair value of options | $4.00 | $4.47 | $5.30 |
Stock Options |
Shares(a)
|
Weighted Average
Exercise Price |
Weighted Average
Remaining Contractual Term |
Aggregate
Intrinsic Value ($ in thousands) |
||||||||||
Outstanding at December 31, 2018 | 5,281 | $ | 19.09 | 6.18 years | $ | 12,392 | ||||||||
Granted | 1,050 | 22.77 | ||||||||||||
Exercised | (674) | 15.75 | ||||||||||||
Forfeited or expired | (114) | 22.42 | ||||||||||||
Outstanding at December 31, 2019 | 5,543 | $ | 20.13 | 6.25 years | $ | 16,043 | ||||||||
Options exercisable at December 31, 2019 | 3,360 | $ | 18.22 | 4.95 years | $ | 14,980 | ||||||||
Restricted Stock |
Shares(a)
|
Weighted Average
Grant Date Fair Value |
||||||
Outstanding at December 31, 2018 | 1,993 | $ | 21.92 | |||||
Granted | 1,180 | 22.20 | ||||||
Vested | (710) | 20.61 | ||||||
Forfeited | (69) | 23.84 | ||||||
Outstanding at December 31, 2019 | 2,393 | $ | 22.39 |
RAP |
Postretirement
Plan |
RAP | Bank Mutual Pension |
Postretirement
Plan |
|||||||||||||
($ in Thousands) | 2019 | 2019 | 2018 | 2018 | 2018 | ||||||||||||
Change in Fair Value of Plan Assets | |||||||||||||||||
Fair value of plan assets at beginning of year | $ | 390,564 | $ | — | $ | 331,609 | N/A | $ | — | ||||||||
Fair value of Bank Mutual plan assets at February 1, 2018 | N/A | — | N/A | 59,445 | — | ||||||||||||
Actual return on plan assets | 67,377 | — | (14,609) | (1,665) | — | ||||||||||||
Employer contributions | — | 270 | 4,340 | 37,537 | 292 | ||||||||||||
Gross benefits paid | (15,907) | (270) | (10,582) | (15,513) | (292) | ||||||||||||
Bank Mutual plan assets transferred at December 31, 2018 | N/A | — | 79,805 | (79,805) | — | ||||||||||||
Fair value of plan assets at end of year(a)
|
$ | 442,034 | $ | — | $ | 390,564 | $ | — | $ | — | |||||||
Change in Benefit Obligation | |||||||||||||||||
Net benefit obligation at beginning of year | $ | 233,658 | $ | 2,523 | $ | 186,423 | N/A | $ | 2,478 | ||||||||
Net Bank Mutual benefit obligation at February 1, 2018 | N/A | — | N/A | 66,364 | 576 | ||||||||||||
Service cost | 7,263 | — | 7,540 | — | — | ||||||||||||
Interest cost | 9,752 | 104 | 6,727 | 2,398 | 108 | ||||||||||||
Actuarial (gain) loss | 25,810 | 188 | (8,000) | (1,701) | (347) | ||||||||||||
Gross benefits paid | (15,907) | (270) | (10,582) | (2,644) | (292) | ||||||||||||
Lump sums paid | — | — | — | (12,868) | — | ||||||||||||
Bank Mutual benefit obligations transferred at December 31, 2018 | N/A | — | $ | 51,549 | (51,549) | — | |||||||||||
Net benefit obligation at end of year(a)
|
$ | 260,576 | $ | 2,545 | $ | 233,658 | $ | — | $ | 2,523 | |||||||
Funded (unfunded) status | $ | 181,458 | $ | (2,545) | $ | 156,906 | $ | — | $ | (2,523) | |||||||
Noncurrent assets | $ | 181,458 | $ | — | $ | 156,906 | $ | — | $ | — | |||||||
Current liabilities | — | (214) | — | — | (219) | ||||||||||||
Noncurrent liabilities | — | (2,330) | — | — | (2,304) | ||||||||||||
Asset (Liability) Recognized on the Consolidated Balance Sheets | $ | 181,458 | $ | (2,545) | $ | 156,906 | $ | — | $ | (2,523) |
RAP |
Postretirement
Plan |
RAP |
Postretirement
Plan |
|||||||||||
($ in Thousands) | 2019 | 2019 | 2018 | 2018 | ||||||||||
Prior service cost | $ | (249) | $ | (533) | $ | (303) | $ | (588) | ||||||
Net actuarial loss | 37,075 | 126 | 50,238 | (17) | ||||||||||
Amount not yet recognized in net periodic benefit cost, but recognized in accumulated other comprehensive (income) loss | $ | 36,827 | $ | (406) | $ | 49,935 | $ | (605) |
RAP |
Postretirement
Plan |
RAP |
Postretirement
Plan |
|||||||||||
($ in Thousands) | 2019 | 2019 | 2018 | 2018 | ||||||||||
Net actuarial gain (loss) | $ | 17,235 | $ | (188) | $ | (28,959) | $ | 347 | ||||||
Amortization of prior service cost | (73) | (75) | (73) | (75) | ||||||||||
Amortization of actuarial loss (gain) | 480 | (4) | 2,195 | 8 | ||||||||||
Adjustment for adoption of ASU 2018-02 | — | — | (5,235) | — | ||||||||||
Income tax (expense) benefit | (4,532) | 67 | 6,838 | (71) | ||||||||||
Total Recognized in OCI | $ | 13,109 | $ | (200) | $ | (25,234) | $ | 209 |
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||
Service cost | $ | 7,263 | $ | 7,540 | $ | 6,955 | |||||
Interest cost | 9,752 | 9,125 | 7,121 | ||||||||
Expected return on plan assets | (24,332) | (23,195) | (19,646) | ||||||||
Amortization of prior service cost | (73) | (73) | (73) | ||||||||
Amortization of actuarial loss (gain) | 480 | 2,195 | 2,278 | ||||||||
Recognized settlement loss (gain) | — | 809 | — | ||||||||
Total net periodic pension cost | $ | (6,910) | $ | (3,600) | $ | (3,365) |
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||
Interest cost | $ | 104 | $ | 108 | $ | 101 | |||||
Amortization of prior service cost | (75) | (75) | (75) | ||||||||
Amortization of actuarial loss (gain) | (4) | 8 | 4 | ||||||||
Total net periodic benefit cost | $ | 25 | $ | 41 | $ | 30 |
RAP |
Postretirement
Plan |
RAP |
Postretirement
Plan |
|||||||||||
2019 | 2019 | 2018 | 2018 | |||||||||||
Weighted average assumptions used to determine benefit obligations | ||||||||||||||
Discount rate | 3.20 | % | 3.20 | % | 4.30 | % | 4.30 | % | ||||||
Rate of increase in compensation levels | 2.00 | % | N/A | 3.00 | % | N/A | ||||||||
Weighted average assumptions used to determine net periodic benefit costs | ||||||||||||||
Discount rate(a)
|
4.30 | % | 4.30 | % | 3.77 | % | 3.77 | % | ||||||
Rate of increase in compensation levels | 3.00 | % | N/A | 3.00 | % | N/A | ||||||||
Expected long-term rate of return on plan assets(b)
|
6.00 | % | N/A | 5.93 | % | N/A |
Asset Category | 2019 | 2018 | ||||||
Equity securities | 51 | % | 49 | % | ||||
Fixed-income securities | 33 | % | 34 | % | ||||
Group annuity contracts | 11 | % | 12 | % | ||||
Alternative securities | 3 | % | 3 | % | ||||
Other | 2 | % | 2 | % | ||||
Total | 100 | % | 100 | % |
Fair Value Measurements Using | ||||||||||||||||||||
($ in Thousands) | December 31, 2019 | Level 1 | Level 2 | Level 3 | ||||||||||||||||
RAP Investments | ||||||||||||||||||||
Money market account | $ | 8,903 | $ | 8,903 | $ | — | $ | — | ||||||||||||
Common /collective trust funds | 155,964 | 155,964 | — | — | ||||||||||||||||
Mutual funds | 227,112 | 227,112 | — | — | ||||||||||||||||
Group annuity contracts | 50,055 | — | — | 50,055 | ||||||||||||||||
Total RAP Investments | $ | 442,034 | $ | 391,979 | $ | — | $ | 50,055 | ||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
($ in Thousands) | December 31, 2018 | Level 1 | Level 2 | Level 3 | ||||||||||||||||
RAP Investments | ||||||||||||||||||||
Money market account | $ | 7,159 | $ | 7,159 | $ | — | $ | — | ||||||||||||
Common /collective trust funds | 138,020 | 138,020 | — | — | ||||||||||||||||
Mutual funds | 198,120 | 198,120 | — | — | ||||||||||||||||
Group annuity contracts | 47,265 | — | — | 47,265 | ||||||||||||||||
Total RAP Investments | $ | 390,564 | $ | 343,299 | $ | — | $ | 47,265 |
Fair Value Reconciliation of Level 3 RAP Investments | 2019 |
2018(a)
|
||||||
Fair value of group annuity contract at beginning of period | $ | 47,265 | $ | 49,191 | ||||
Return on plan assets | 5,495 | 565 | ||||||
Benefits paid | (2,704) | (2,491) | ||||||
Fair value of group annuity contract at end of period | $ | 50,055 | $ | 47,265 |
($ in Thousands) | RAP | Postretirement Plan | ||||||
Estimated future benefit payments | ||||||||
2020 | $ | 19,659 | $ | 218 | ||||
2021 | 19,755 | 213 | ||||||
2022 | 20,729 | 208 | ||||||
2023 | 20,392 | 202 | ||||||
2024 | 20,710 | 196 | ||||||
2025-2029 | 91,264 | 867 |
2019 | 2018 | |||||||||||||||||||
($ in Thousands) | 100 bp Increase | 100 bp Decrease | 100 bp Increase | 100 bp Decrease | ||||||||||||||||
Effect on total of service and interest cost | $ | 7 | $ | (6) | $ | 7 | $ | (6) | ||||||||||||
Effect on postretirement benefit obligation | $ | 170 | $ | (148) | $ | 164 | $ | (143) |
Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Current | |||||||||||||||||
Federal | $ | 50,560 | $ | 20,246 | $ | 76,525 | |||||||||||
State | 15,327 | 12,593 | 11,576 | ||||||||||||||
Total current | 65,887 | 32,839 | 88,101 | ||||||||||||||
Deferred | |||||||||||||||||
Federal | 14,094 | 34,941 | 19,755 | ||||||||||||||
State | (261) | 12,006 | 1,647 | ||||||||||||||
Total deferred | 13,833 | 46,947 | 21,402 | ||||||||||||||
Total income tax expense | $ | 79,720 | $ | 79,786 | $ | 109,503 |
($ in Thousands) | 2019 | 2018 | ||||||
Deferred tax assets | ||||||||
Allowance for loan losses | $ | 48,790 | $ | 61,143 | ||||
Allowance for other losses | 7,236 | 8,304 | ||||||
Accrued liabilities | 4,005 | 3,736 | ||||||
Deferred compensation | 28,018 | 24,754 | ||||||
Benefit of tax loss and credit carryforwards | 13,444 | 10,126 | ||||||
Nonaccrual interest | 1,299 | 1,666 | ||||||
Net unrealized losses on available-for-sale securities | — | 25,731 | ||||||
Net unrealized losses on pension and postretirement benefits | 12,174 | 16,640 | ||||||
Other | 3,495 | 1,916 | ||||||
Total deferred tax assets | 118,461 | 154,015 | ||||||
Valuation allowance for deferred tax assets | (251) | (251) | ||||||
Total deferred tax assets after valuation allowance | $ | 118,211 | $ | 153,764 | ||||
Deferred tax liabilities | ||||||||
Prepaid expenses | $ | 62,227 | $ | 61,250 | ||||
Goodwill | 21,099 | 20,178 | ||||||
Mortgage banking activities | 17,418 | 17,428 | ||||||
Deferred loan fee income | 12,190 | 11,892 | ||||||
State deferred taxes | 722 | 518 | ||||||
Lease financing | 199 | 410 | ||||||
Bank premises and equipment | 18,348 | 18,655 | ||||||
Purchase accounting | 13,738 | 12,414 | ||||||
Deferred gains from equity securities and other investments | 4,810 | — | ||||||
Net unrealized gains on available-for-sale securities | 1,139 | — | ||||||
Other | 1,156 | 684 | ||||||
Total deferred tax liabilities | $ | 153,045 | $ | 143,429 | ||||
Net deferred tax assets (liabilities) | $ | (34,836) | $ | 10,335 |
($ in Thousands) | 2019 | 2018 | ||||||
Valuation allowance for deferred tax assets, beginning of year | $ | (251) | $ | (269) | ||||
(Increase) decrease in current year | — | 18 | ||||||
Valuation allowance for deferred tax assets, end of year | $ | (251) | $ | (251) |
2019 | 2018 | 2017 | |||||||||
Federal income tax rate at statutory rate | 21.0 | % | 21.0 | % | 35.0 | % | |||||
Increases (decreases) resulting from: | |||||||||||
Tax-exempt interest and dividends | (3.3) | % | (2.6) | % | (4.1) | % | |||||
State income taxes (net of federal benefit) | 3.5 | % | 3.7 | % | 2.9 | % | |||||
Bank owned life insurance | (0.8) | % | (0.7) | % | (1.7) | % | |||||
Tax effect of tax credits and benefits, net of related expenses | (0.9) | % | (0.7) | % | (0.7) | % | |||||
Tax reserve adjustments / settlements | 0.2 | % | 1.5 | % | (1.2) | % | |||||
Net tax benefit from stock-based compensation | (0.2) | % | (0.5) | % | (1.3) | % | |||||
Tax Act impact on deferred remeasurement | — | % | — | % | 3.5 | % | |||||
Tax planning in response to the Tax Act | — | % | (3.6) | % | — | % | |||||
FDIC premium | 0.5 | % | 0.9 | % | — | % | |||||
Other | (0.4) | % | 0.3 | % | (0.1) | % | |||||
Effective income tax rate | 19.6 | % | 19.3 | % | 32.3 | % |
($ in Millions) | 2019 | 2018 | ||||||
Balance at beginning of year | $ | 2 | $ | 4 | ||||
Subtractions for tax positions related to prior years | — | — | ||||||
Subtractions for settlements with tax authorities | — | (3) | ||||||
Additions for tax positions related to current year | 1 | 1 | ||||||
Balance at end of year | $ | 3 | $ | 2 |
December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
Asset | Liability | Asset | Liability | |||||||||||||||||||||||||||||||||||||||||||||||
($ in Thousands) | Notional Amount |
Fair
Value |
Notional Amount |
Fair
Value |
Notional Amount |
Fair
Value |
Notional Amount |
Fair
Value |
||||||||||||||||||||||||||||||||||||||||||
Designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate-related instruments | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 500,000 | $ | 40 | ||||||||||||||||||||||||||||||||||
Not designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate-related instruments | 3,029,877 | 77,024 | 3,029,877 | 13,073 | 2,707,204 | 52,796 | 2,707,204 | 52,653 | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency exchange forwards | 272,636 | 4,226 | 264,653 | 4,048 | 117,879 | 721 | 69,153 | 675 | ||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | 255,089 | 20,528 | 255,165 | 19,624 | 331,727 | 35,426 | 315,861 | 34,340 | ||||||||||||||||||||||||||||||||||||||||||
Mortgage banking(a)
|
255,291 | 2,527 | 263,000 | 710 | 191,222 | 2,208 | 139,984 | 2,072 | ||||||||||||||||||||||||||||||||||||||||||
Time deposits | — | — | — | — | 11,185 | 109 | 11,185 | 109 | ||||||||||||||||||||||||||||||||||||||||||
Total not designated as hedging instruments | 104,305 | 37,455 | 91,260 | 89,849 | ||||||||||||||||||||||||||||||||||||||||||||||
Gross derivatives before netting | $ | 104,305 | $ | 37,455 | $ | 91,260 | $ | 89,889 | ||||||||||||||||||||||||||||||||||||||||||
Less: Legally enforceable master netting agreements | 10,410 | 10,410 | 5,322 | 5,322 | ||||||||||||||||||||||||||||||||||||||||||||||
Less: Cash collateral pledged/received | 1,408 | 11,365 | 27,593 | 63 | ||||||||||||||||||||||||||||||||||||||||||||||
Total derivative instruments, after netting(b)
|
$ | 92,487 | $ | 15,680 | $ | 58,345 | $ | 84,504 |
Location and Amount of Gain or (Loss) Recognized on Consolidated Statements of Income in Fair Value and Cash Flow Hedging Relationships | |||||||||||||||||||||||
Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||||||||||||||||||
($ in Thousands) | Interest Income | Other Income (Expense) | Interest Income | Other Income (Expense) | |||||||||||||||||||
Total amounts of income and expense line items presented on the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded(a)
|
$ | (448) | $ | — | $ | (1,325) | $ | — | |||||||||||||||
The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | |||||||||||||||||||||||
Interest contracts | |||||||||||||||||||||||
Hedged items | 5,871 | — | (502) | — | |||||||||||||||||||
Derivatives designated as hedging instruments(a)
|
(6,319) | — | (823) | — |
Consolidated Statements of Income Category of
Gain / (Loss) Recognized in Income |
For the Year Ended December 31, | |||||||||||||
($ in Thousands) | 2019 | 2018 | ||||||||||||
Derivative Instruments | ||||||||||||||
Interest rate-related instruments — customer and mirror, net | Capital market fees, net | $ | (1,393) | $ | (316) | |||||||||
Interest rate lock commitments (mortgage) | Mortgage banking, net | 319 | 670 | |||||||||||
Forward commitments (mortgage) | Mortgage banking, net | 1,362 | (1,759) | |||||||||||
Foreign currency exchange forwards | Capital market fees, net | 132 | (110) | |||||||||||
Commodity contracts | Capital market fees, net | (1,763) | (314) |
Gross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance Sheets | Net Amounts Presented on the Consolidated Balance Sheets | Gross Amounts Not Offset on the Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in Thousands)
|
Gross Amounts Recognized | Derivative Liabilities Offset | Cash Collateral Received |
Net
Amount |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets(a)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | $ | 11,864 | $ | (10,410) | $ | (1,408) | $ | 45 | $ | — | $ | 45 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | 65,596 | (5,322) | (27,593) | 32,681 | (31,837) | 843 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amounts Subject to Master Netting Arrangements Offset on the Consolidated Balance Sheets | Net Amounts Presented on the Consolidated Balance Sheets | Gross Amounts Not Offset on the Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in Thousands) | Gross Amounts Recognized | Derivative Assets Offset | Cash Collateral Pledged |
Net
Amount |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(a)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | $ | 22,189 | $ | (10,410) | $ | (11,365) | $ | 413 | $ | — | $ | 413 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | 22,951 | (5,322) | (63) | 17,567 | (17,551) | 16 |
($ in Thousands) | 2019 | 2018 | ||||||
Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale(a)(b)
|
$ | 9,024,412 | $ | 8,720,293 | ||||
Commercial letters of credit(a)
|
7,081 | 7,599 | ||||||
Standby letters of credit(c)
|
277,969 | 255,904 |
December 31, | |||||||||||
($ in Thousands) | 2019 | 2018 | |||||||||
Assets | |||||||||||
Cash and due from banks | $ | 17,427 | $ | 16,245 | |||||||
Interest-bearing deposits in other financial institutions | 27,186 | 38,374 | |||||||||
Notes and interest receivable from subsidiaries | 201,551 | 453,615 | |||||||||
Investments in and receivable due from subsidiaries | 3,925,596 | 3,787,574 | |||||||||
Other assets | 46,234 | 47,448 | |||||||||
Total assets | $ | 4,217,994 | $ | 4,343,256 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
Commercial paper | $ | 32,016 | $ | 45,423 | |||||||
Senior notes, at par | — | 250,000 | |||||||||
Subordinated notes, at par | 250,000 | 250,000 | |||||||||
Long-term funding capitalized costs | (1,428) | (2,043) | |||||||||
Total long-term funding | 248,572 | 497,957 | |||||||||
Accrued expenses and other liabilities | 15,282 | 18,988 | |||||||||
Total liabilities | 295,870 | 562,368 | |||||||||
Preferred equity | 256,716 | 256,716 | |||||||||
Common equity | 3,665,407 | 3,524,171 | |||||||||
Total stockholders’ equity | 3,922,124 | 3,780,888 | |||||||||
Total liabilities and stockholders’ equity | $ | 4,217,994 | $ | 4,343,256 |
For the Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Income | |||||||||||||||||
Income from subsidiaries | $ | 341,789 | $ | 354,637 | $ | 253,485 | |||||||||||
Interest income on notes receivable from subsidiaries | 13,983 | 12,199 | 4,175 | ||||||||||||||
Other income | 761 | 994 | 1,763 | ||||||||||||||
Total income | 356,532 | 367,830 | 259,423 | ||||||||||||||
Expense | |||||||||||||||||
Interest expense on short and long-term funding | 16,802 | 18,355 | 18,464 | ||||||||||||||
Other expense | 6,583 | 11,736 | 6,927 | ||||||||||||||
Total expense | 23,384 | 30,091 | 25,391 | ||||||||||||||
Income before income tax expense | 333,148 | 337,739 | 234,032 | ||||||||||||||
Income tax expense | 6,359 | 4,176 | 4,768 | ||||||||||||||
Net income | 326,790 | 333,562 | 229,264 | ||||||||||||||
Preferred stock dividends | 15,202 | 10,784 | 9,347 | ||||||||||||||
Net income available to common equity | $ | 311,587 | $ | 322,779 | $ | 219,917 |
For the Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||
Net income | $ | 326,790 | $ | 333,562 | $ | 229,264 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
(Increase) decrease in equity in undistributed net income (loss) of subsidiaries | (21,789) | (18,636) | (40,485) | ||||||||||||||
(Gain) loss on sales of assets, net | — | — | (88) | ||||||||||||||
Net change in other assets and accrued expenses and other liabilities | 265 | (92,366) | (9,589) | ||||||||||||||
Net cash provided by operating activities | 305,266 | 222,562 | 179,102 | ||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||
Proceeds from sales of investment securities | — | 827 | 2,618 | ||||||||||||||
Net (increase) decrease in notes receivable from subsidiaries | 250,000 | (139,317) | (300,000) | ||||||||||||||
Net (increase) decrease in loans | — | 2,210 | 1,058 | ||||||||||||||
Net cash provided by (used in) investing activities | 250,000 | (136,280) | (296,324) | ||||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||
Net increase (decrease) in commercial paper | (13,406) | (22,044) | (34,221) | ||||||||||||||
Redemption of Corporation's senior notes | (250,000) | — | — | ||||||||||||||
Proceeds from issuance of common stock for stock-based compensation plans | 11,216 | 18,408 | 27,619 | ||||||||||||||
Proceeds from issuance of preferred stock | — | 97,315 | — | ||||||||||||||
Purchase of preferred stock | — | (537) | — | ||||||||||||||
Common stock warrants exercised | — | (1) | — | ||||||||||||||
Purchase of common stock returned to authorized but unissued | — | (33,075) | (37,031) | ||||||||||||||
Issuance of treasury stock for acquisition | — | 91,296 | — | ||||||||||||||
Purchase of treasury stock | (186,076) | (213,598) | (9,290) | ||||||||||||||
Cash dividends on common stock | (111,804) | (105,519) | (76,417) | ||||||||||||||
Cash dividends on preferred stock | (15,202) | (10,784) | (9,347) | ||||||||||||||
Net cash used in financing activities | (565,272) | (178,540) | (138,687) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | (10,006) | (92,258) | (255,909) | ||||||||||||||
Cash and cash equivalents at beginning of year | 54,619 | 146,877 | 402,786 | ||||||||||||||
Cash and cash equivalents at end of year | $ | 44,613 | $ | 54,619 | $ | 146,877 |
($ in Thousands) | Fair Value Hierarchy | December 31, 2019 | December 31, 2018 | ||||||||
Assets | |||||||||||
Investment securities available for sale | |||||||||||
U.S. Treasury securities | Level 1 | $ | — | $ | 999 | ||||||
Obligations of state and political subdivisions (municipal securities) | Level 2 | 546,160 | — | ||||||||
Residential mortgage-related securities | |||||||||||
FNMA / FHLMC | Level 2 | 132,660 | 295,252 | ||||||||
GNMA | Level 2 | 985,139 | 2,128,531 | ||||||||
Private-label | Level 2 | — | 1,003 | ||||||||
Commercial mortgage-related securities | |||||||||||
FNMA / FHLMC | Level 2 | 21,728 | — | ||||||||
GNMA | Level 2 | 1,310,207 | 1,220,797 | ||||||||
FFELP asset-backed securities | Level 2 | 263,693 | 297,360 | ||||||||
Other debt securities | Level 2 | 3,000 | 3,000 | ||||||||
Total investment securities available for sale | Level 1 | — | 999 | ||||||||
Total investment securities available for sale | Level 2 | 3,262,586 | 3,945,943 | ||||||||
Equity securities with readily determinable fair values | Level 1 | 1,646 | 1,568 | ||||||||
Residential loans held for sale
|
Level 2 | 136,280 | 64,321 | ||||||||
Interest rate-related instruments(a)
|
Level 2 | 77,024 | 52,796 | ||||||||
Foreign currency exchange forwards(a)
|
Level 2 | 4,226 | 721 | ||||||||
Commodity contracts(a)
|
Level 2 | 20,528 | 35,426 | ||||||||
Purchased options (time deposit) | Level 2 | — | 109 | ||||||||
Interest rate lock commitments to originate residential mortgage loans held for sale | Level 3 | 2,527 | 2,208 | ||||||||
Liabilities | |||||||||||
Interest rate-related instruments(a)
|
Level 2 | $ | 13,073 | $ | 52,653 | ||||||
Foreign currency exchange forwards(a)
|
Level 2 | 4,048 | 675 | ||||||||
Commodity contracts(a)
|
Level 2 | 19,624 | 34,340 | ||||||||
Written options (time deposit) | Level 2 | — | 109 | ||||||||
Interest rate products (designated as hedging instruments) | Level 2 | — | 40 | ||||||||
Forward commitments to sell residential mortgage loans | Level 3 | 710 | 2,072 |
($ in Thousands) | Derivative Financial Instruments | |||||||||||||
Balance December 31, 2017 | $ | 1,225 | ||||||||||||
Total net gains (losses) included in income | ||||||||||||||
Mortgage derivative gain (loss) | (1,085) | |||||||||||||
Balance December 31, 2018 | $ | 140 | ||||||||||||
Total net gains (losses) included in income | ||||||||||||||
Mortgage derivative gain (loss) | 1,681 | |||||||||||||
Balance December 31, 2019 | $ | 1,817 |
($ in Thousands) | |||||
Equity securities without readily determinable fair values | |||||
Carrying value as of December 31, 2018 | $ | — | |||
Upward carrying value changes | 13,444 | ||||
Carrying value as of December 31, 2019 | $ | 13,444 | |||
Cumulative upward carrying value changes between January 1, 2018 and December 31, 2019 | $ | 13,444 | |||
Cumulative downward carrying value changes between January 1, 2018 and December 31, 2019 | $ | — |
($ in Thousands) | Fair Value Hierarchy | Fair Value |
Consolidated Statements of Income Category of
Adjustment Recognized in Income |
Adjustment Recognized on the Consolidated Statements of Income | |||||||||||||
December 31, 2019 | |||||||||||||||||
Assets | |||||||||||||||||
Impaired loans(a)
|
Level 3 | $ | 45,792 |
Provision for credit losses(b)
|
$ | (66,172) | |||||||||||
OREO(c)
|
Level 2 | 3,565 | Other noninterest expense | (1,860) | |||||||||||||
Mortgage servicing rights | Level 3 | 72,532 | Mortgage banking, net | (63) | |||||||||||||
Equity securities | Level 3 | 13,444 | Investment securities gains (losses), net | 13,444 | |||||||||||||
December 31, 2018 | |||||||||||||||||
Assets | |||||||||||||||||
Impaired loans(a)
|
Level 3 | $ | 26,191 |
Provision for credit losses(b)
|
$ | (14,521) | |||||||||||
OREO(c)
|
Level 2 | 2,200 | Other noninterest expense | (1,545) | |||||||||||||
Mortgage servicing rights | Level 3 | 81,012 | Mortgage banking, net | 545 |
December 31, 2019 | Valuation Technique | Significant Unobservable Input | Weighted Average Input Applied | ||||||||
Mortgage servicing rights | Discounted cash flow | Discount rate | 9% | ||||||||
Mortgage servicing rights | Discounted cash flow | Constant prepayment rate | 12% | ||||||||
Impaired loans | Appraisals / Discounted cash flow | Collateral / Discount factor | 44% |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
($ in Thousands) | Fair Value Hierarchy Level | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||
Financial assets | |||||||||||||||||||||||
Cash and due from banks | Level 1 | $ | 373,380 | $ | 373,380 | $ | 507,187 | $ | 507,187 | ||||||||||||||
Interest-bearing deposits in other financial institutions | Level 1 | 207,624 | 207,624 | 221,226 | 221,226 | ||||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | Level 1 | 7,740 | 7,740 | 148,285 | 148,285 | ||||||||||||||||||
Investment securities held to maturity | Level 1 | 999 | 1,018 | — | — | ||||||||||||||||||
Investment securities held to maturity | Level 2 | 2,204,084 | 2,275,447 | 2,740,511 | 2,710,271 | ||||||||||||||||||
Investment securities available for sale | Level 1 | — | — | 999 | 999 | ||||||||||||||||||
Investment securities available for sale | Level 2 | 3,262,586 | 3,262,586 | 3,945,943 | 3,945,943 | ||||||||||||||||||
Equity securities with readily determinable fair values | Level 1 | 1,646 | 1,646 | 1,568 | 1,568 | ||||||||||||||||||
Equity securities without readily determinable fair values | Level 3 | 13,444 | 13,444 | — | — | ||||||||||||||||||
FHLB and Federal Reserve Bank stocks | Level 2 | 227,347 | 227,347 | 250,534 | 250,534 | ||||||||||||||||||
Residential loans held for sale | Level 2 | 136,280 | 136,280 | 64,321 | 64,321 | ||||||||||||||||||
Commercial loans held for sale | Level 2 | 15,000 | 15,000 | 14,943 | 14,943 | ||||||||||||||||||
Loans, net | Level 3 | 22,620,068 | 22,399,621 | 22,702,406 | 22,317,395 | ||||||||||||||||||
Bank and corporate owned life insurance | Level 2 | 671,948 | 671,948 | 663,203 | 663,203 | ||||||||||||||||||
Derivatives (other assets)(a)
|
Level 2 | 101,778 | 101,778 | 89,052 | 89,052 | ||||||||||||||||||
Interest rate lock commitments to originate residential mortgage loans held for sale (other assets) | Level 3 | 2,527 | 2,527 | 2,208 | 2,208 | ||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts | Level 3 | $ | 21,156,261 | $ | 21,156,261 | $ | 22,081,992 | $ | 22,081,992 | ||||||||||||||
Brokered CDs and other time deposits(b)
|
Level 2 | 2,622,803 | 2,622,803 | 2,815,401 | 2,815,401 | ||||||||||||||||||
Short-term funding(c)
|
Level 2 | 465,113 | 465,113 | 157,074 | 157,074 | ||||||||||||||||||
Long-term funding | Level 2 | 549,343 | 588,774 | 795,611 | 826,612 | ||||||||||||||||||
FHLB advances | Level 2 | 3,180,967 | 3,207,793 | 3,574,371 | 3,565,572 | ||||||||||||||||||
Standby letters of credit(d)
|
Level 2 | 2,710 | 2,710 | 2,482 | 2,482 | ||||||||||||||||||
Derivatives (accrued expenses and other liabilities)(a)
|
Level 2 | 36,745 | 36,745 | 87,817 | 87,817 | ||||||||||||||||||
Forward commitments to sell residential mortgage loans (accrued expenses and other liabilities) | Level 3 | 710 | 710 | 2,072 | 2,072 |
Actual |
For Capital Adequacy
Purposes |
To Be Well Capitalized
Under Prompt Corrective
Action Provisions(b)
|
|||||||||||||||||||||||||||||||||||||||
($ in Thousands) | Amount |
Ratio(a)
|
Amount |
Ratio(a)
|
Amount |
Ratio(a)
|
|||||||||||||||||||||||||||||||||||
As of December 31 , 2019 | |||||||||||||||||||||||||||||||||||||||||
Associated Banc-Corp | |||||||||||||||||||||||||||||||||||||||||
Total capital | $ | 3,208,625 | 13.21 | % | $ | 1,943,711 | ≥ | 8.00 | % | ||||||||||||||||||||||||||||||||
Tier 1 capital | 2,736,776 | 11.26 | % | 1,457,783 | ≥ | 6.00 | % | ||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital | 2,480,698 | 10.21 | % | 1,093,337 | ≥ | 4.50 | % | ||||||||||||||||||||||||||||||||||
Leverage | 2,736,776 | 8.83 | % | 1,239,431 | ≥ | 4.00 | % | ||||||||||||||||||||||||||||||||||
Associated Bank, N.A. | |||||||||||||||||||||||||||||||||||||||||
Total capital | $ | 2,892,650 | 11.95 | % | $ | 1,936,732 | ≥ | 8.00 | % | $ | 2,420,915 | ≥ | 10.00 | % | |||||||||||||||||||||||||||
Tier 1 capital | 2,669,372 | 11.03 | % | 1,452,549 | ≥ | 6.00 | % | 1,936,732 | ≥ | 8.00 | % | ||||||||||||||||||||||||||||||
Common equity Tier 1 capital | 2,469,578 | 10.20 | % | 1,089,412 | ≥ | 4.50 | % | 1,573,595 | ≥ | 6.50 | % | ||||||||||||||||||||||||||||||
Leverage | 2,669,372 | 8.63 | % | 1,236,565 | ≥ | 4.00 | % | 1,545,706 | ≥ | 5.00 | % | ||||||||||||||||||||||||||||||
As of December 31 , 2018 | |||||||||||||||||||||||||||||||||||||||||
Associated Banc-Corp | |||||||||||||||||||||||||||||||||||||||||
Total capital | $ | 3,216,575 | 13.49 | % | $ | 1,907,403 | ≥ | 8.00 | % | ||||||||||||||||||||||||||||||||
Tier 1 capital | 2,705,939 | 11.35 | % | 1,430,553 | ≥ | 6.00 | % | ||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital | 2,449,721 | 10.27 | % | 1,072,914 | ≥ | 4.50 | % | ||||||||||||||||||||||||||||||||||
Leverage | 2,705,939 | 8.49 | % | 1,275,048 | ≥ | 4.00 | % | ||||||||||||||||||||||||||||||||||
Associated Bank, N.A. | |||||||||||||||||||||||||||||||||||||||||
Total capital | $ | 2,909,064 | 12.25 | % | $ | 1,900,536 | ≥ | 8.00 | % | $ | 2,375,671 | ≥ | 10.00 | % | |||||||||||||||||||||||||||
Tier 1 capital | 2,646,705 | 11.14 | % | 1,425,402 | ≥ | 6.00 | % | 1,900,536 | ≥ | 8.00 | % | ||||||||||||||||||||||||||||||
Common equity Tier 1 capital | 2,446,782 | 10.30 | % | 1,069,052 | ≥ | 4.50 | % | 1,544,186 | ≥ | 6.50 | % | ||||||||||||||||||||||||||||||
Leverage | 2,646,705 | 8.32 | % | 1,272,804 | ≥ | 4.00 | % | 1,591,006 | ≥ | 5.00 | % |
For the Years Ended December 31, | |||||||||||||||||||||||||||||
($ in Thousands, except per share data) | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||
Net income | $ | 326,790 | $ | 333,562 | $ | 229,264 | |||||||||||||||||||||||
Preferred stock dividends | (15,202) | (10,784) | (9,347) | ||||||||||||||||||||||||||
Net income available to common equity | 311,587 | 322,779 | 219,917 | ||||||||||||||||||||||||||
Common shareholder dividends | (111,091) | (104,981) | (75,967) | ||||||||||||||||||||||||||
Unvested share-based payment awards | (713) | (537) | (450) | ||||||||||||||||||||||||||
Undistributed earnings | 199,784 | 217,260 | 143,500 | ||||||||||||||||||||||||||
Undistributed earnings allocated to common shareholders | 198,424 | 216,199 | 142,593 | ||||||||||||||||||||||||||
Undistributed earnings allocated to unvested share-based payment awards | 1,360 | 1,060 | 907 | ||||||||||||||||||||||||||
Undistributed earnings | $ | 199,784 | $ | 217,260 | $ | 143,500 | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||||||||
Distributed earnings to common shareholders | $ | 111,091 | $ | 104,981 | $ | 75,967 | |||||||||||||||||||||||
Undistributed earnings allocated to common shareholders | 198,424 | 216,199 | 142,593 | ||||||||||||||||||||||||||
Total common shareholders earnings, basic | $ | 309,514 | $ | 321,181 | $ | 218,560 | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||||||||
Distributed earnings to common shareholders | $ | 111,091 | $ | 104,981 | $ | 75,967 | |||||||||||||||||||||||
Undistributed earnings allocated to common shareholders | 198,424 | 216,199 | 142,593 | ||||||||||||||||||||||||||
Total common shareholders earnings, diluted | $ | 309,514 | $ | 321,181 | $ | 218,560 | |||||||||||||||||||||||
Weighted average common shares outstanding | $ | 160,534 | $ | 167,345 | $ | 150,877 | |||||||||||||||||||||||
Effect of dilutive common stock awards | 1,398 | 1,985 | 2,038 | ||||||||||||||||||||||||||
Effect of dilutive common stock warrants | — | 402 | 732 | ||||||||||||||||||||||||||
Diluted weighted average common shares outstanding | $ | 161,932 | $ | 169,732 | $ | 153,647 | |||||||||||||||||||||||
Basic earnings per common share | $ | 1.93 | $ | 1.92 | $ | 1.45 | |||||||||||||||||||||||
Diluted earnings per common share | $ | 1.91 | $ | 1.89 | $ | 1.42 |
Corporate and Commercial Specialty | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Net interest income | $ | 450,532 | $ | 457,613 | $ | 360,789 | |||||||||||
Net intersegment interest income (expense) | (76,064) | (56,356) | (3,737) | ||||||||||||||
Segment net interest income | 374,467 | 401,258 | 357,051 | ||||||||||||||
Noninterest income | 53,282 | 52,321 | 52,297 | ||||||||||||||
Total revenue | 427,749 | 453,578 | 409,348 | ||||||||||||||
Credit provision | 52,382 | 44,592 | 42,298 | ||||||||||||||
Noninterest expense | 156,348 | 160,399 | 156,890 | ||||||||||||||
Income (loss) before income taxes | 219,019 | 248,587 | 210,160 | ||||||||||||||
Income tax expense (benefit) | 41,209 | 47,850 | 71,655 | ||||||||||||||
Net income | $ | 177,809 | $ | 200,737 | $ | 138,505 | |||||||||||
Allocated goodwill | $ | 525,836 | $ | 524,525 | $ | 428,000 |
Community, Consumer, and Business | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Net interest income | $ | 332,850 | $ | 357,245 | $ | 316,008 | |||||||||||
Net intersegment interest income (expense) | 103,468 | 87,737 | 45,353 | ||||||||||||||
Segment net interest income | 436,318 | 444,982 | 361,361 | ||||||||||||||
Noninterest income | 307,750 | 295,647 | 266,250 | ||||||||||||||
Total revenue | 744,067 | 740,629 | 627,611 | ||||||||||||||
Credit provision | 20,043 | 20,083 | 20,400 | ||||||||||||||
Noninterest expense | 547,423 | 541,771 | 490,567 | ||||||||||||||
Income (loss) before income taxes | 176,601 | 178,775 | 116,645 | ||||||||||||||
Income tax expense (benefit) | 37,105 | 37,543 | 40,826 | ||||||||||||||
Net income | $ | 139,496 | $ | 141,232 | $ | 75,819 | |||||||||||
Allocated goodwill | $ | 650,394 | $ | 644,498 | $ | 548,238 |
Risk Management and Shared Services | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Net interest income | $ | 52,292 | $ | 64,722 | $ | 64,423 | |||||||||||
Net intersegment interest income (expense) | (27,403) | (31,382) | (41,615) | ||||||||||||||
Segment net interest income | 24,889 | 33,341 | 22,808 | ||||||||||||||
Noninterest income | 19,793 | 7,600 | 14,133 | ||||||||||||||
Total revenue | 44,682 | 40,941 | 36,941 | ||||||||||||||
Credit provision | (56,425) | (64,675) | (36,698) | ||||||||||||||
Noninterest expense(a)
|
90,217 | 119,629 | 61,677 | ||||||||||||||
Income (loss) before income taxes | 10,890 | (14,013) | 11,962 | ||||||||||||||
Income tax expense (benefit) | 1,405 | (5,606) | (2,978) | ||||||||||||||
Net income | $ | 9,484 | $ | (8,407) | $ | 14,941 | |||||||||||
Allocated goodwill | $ | — | $ | — | $ | — |
Consolidated Total | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Net interest income | $ | 835,674 | $ | 879,580 | $ | 741,220 | |||||||||||
Net intersegment interest income (expense) | — | — | — | ||||||||||||||
Segment net interest income | 835,674 | 879,580 | 741,220 | ||||||||||||||
Noninterest income | 380,824 | 355,568 | 332,680 | ||||||||||||||
Total revenue | 1,216,498 | 1,235,148 | 1,073,900 | ||||||||||||||
Credit provision | 16,000 | — | 26,000 | ||||||||||||||
Noninterest expense | 793,988 | 821,799 | 709,133 | ||||||||||||||
Income (loss) before income taxes | 406,509 | 413,349 | 338,767 | ||||||||||||||
Income tax expense (benefit) | 79,720 | 79,786 | 109,503 | ||||||||||||||
Net income | $ | 326,790 | $ | 333,562 | $ | 229,264 | |||||||||||
Allocated goodwill | $ | 1,176,230 | $ | 1,169,023 | $ | 976,239 |
($ in Thousands) |
Investment
Securities Available For Sale |
Defined Benefit
Pension and Postretirement Obligations |
Accumulated
Other Comprehensive Income (Loss) |
||||||||
Balance, December 31, 2016 | $ | (20,079) | $ | (34,600) | $ | (54,679) | |||||
Other comprehensive income (loss) before reclassifications | (27,040) | 14,273 | (12,767) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||
Personnel expense | — | (148) | (148) | ||||||||
Other expense | — | 2,282 | 2,282 | ||||||||
Interest income | (2,665) | — | (2,665) | ||||||||
Income tax (expense) benefit | 11,331 | (6,112) | 5,219 | ||||||||
Net other comprehensive income (loss) during period | (18,374) | 10,295 | (8,079) | ||||||||
Balance, December 31, 2017 | $ | (38,453) | $ | (24,305) | $ | (62,758) | |||||
Other comprehensive income (loss) before reclassifications | $ | (39,891) | $ | (28,612) | $ | (68,503) | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||
Investment securities losses (gains), net | 1,985 | — | 1,985 | ||||||||
Personnel expense | — | (148) | (148) | ||||||||
Other expense | — | 2,203 | 2,203 | ||||||||
Interest income | (572) | — | (572) | ||||||||
Adjustment for adoption of ASU 2016-01 | (84) | — | (84) | ||||||||
Adjustment for adoption of ASU 2018-02 | (8,419) | (5,235) | (13,654) | ||||||||
Income tax (expense) benefit | 9,791 | 6,767 | 16,558 | ||||||||
Net other comprehensive income (loss) during period | (37,189) | (25,025) | (62,214) | ||||||||
Balance, December 31, 2018 | $ | (75,643) | $ | (49,330) | $ | (124,972) | |||||
Other comprehensive income (loss) before reclassifications | $ | 111,592 | $ | 16,296 | $ | 127,887 | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||
Investment securities losses (gains), net | (5,957) | — | (5,957) | ||||||||
Personnel expense | — | (148) | (148) | ||||||||
Other expense | — | 476 | 476 | ||||||||
Interest income | 895 | — | 895 | ||||||||
Income tax (expense) benefit | (26,898) | (4,465) | (31,363) | ||||||||
Net other comprehensive income (loss) during period | 79,631 | 12,158 | 91,789 | ||||||||
Balance, December 31, 2019 | $ | 3,989 | $ | (37,172) | $ | (33,183) |
Corporate and Commercial Specialty | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Service charges and deposit account fees | $ | 12,883 | $ | 14,981 | $ | 16,006 | |||||||||||
Card-based fees(a)
|
1,373 | 1,334 | 1,125 | ||||||||||||||
Other revenue | 1,002 | 694 | 811 | ||||||||||||||
Noninterest Income (in-scope of Topic 606) | $ | 15,258 | $ | 17,009 | $ | 17,941 | |||||||||||
Noninterest Income (out-of-scope of Topic 606) | 38,024 | 35,311 | 34,355 | ||||||||||||||
Total Noninterest Income | $ | 53,282 | $ | 52,321 | $ | 52,297 | |||||||||||
Community, Consumer, and Business | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Insurance commissions and fees | $ | 89,091 | $ | 89,472 | $ | 81,468 | |||||||||||
Wealth management fees(b)
|
83,467 | 82,341 | 70,126 | ||||||||||||||
Service charges and deposit account fees | 50,203 | 51,025 | 48,344 | ||||||||||||||
Card-based fees(a)
|
38,349 | 38,439 | 33,849 | ||||||||||||||
Other revenue | 10,952 | 11,087 | 10,095 | ||||||||||||||
Noninterest Income (in-scope of Topic 606) | $ | 272,062 | $ | 272,363 | $ | 243,883 | |||||||||||
Noninterest Income (out-of-scope of Topic 606) | 35,687 | 23,284 | 22,367 | ||||||||||||||
Total Noninterest Income | $ | 307,750 | $ | 295,647 | $ | 266,250 | |||||||||||
Risk Management and Share Services | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Insurance commissions and fees | $ | 13 | $ | 39 | $ | 6 | |||||||||||
Wealth management fees(b)
|
— | 222 | — | ||||||||||||||
Service charges and deposit account fees | 49 | 69 | 77 | ||||||||||||||
Card-based fees(a)
|
190 | 37 | 23 | ||||||||||||||
Other revenue | 675 | 345 | 245 | ||||||||||||||
Noninterest Income (in-scope of Topic 606) | $ | 926 | $ | 712 | $ | 351 | |||||||||||
Noninterest Income (out-of-scope of Topic 606) | 18,866 | 6,889 | 13,783 | ||||||||||||||
Total Noninterest Income | $ | 19,793 | $ | 7,600 | $ | 14,133 | |||||||||||
Consolidated Total | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2019 | 2018 | 2017 | ||||||||||||||
Insurance commissions and fees | $ | 89,104 | $ | 89,511 | $ | 81,474 | |||||||||||
Wealth management fees(b)
|
83,467 | 82,562 | 70,126 | ||||||||||||||
Service charges and deposit account fees | 63,135 | 66,075 | 64,427 | ||||||||||||||
Card-based fees(a)
|
39,912 | 39,810 | 34,997 | ||||||||||||||
Other revenue | 12,629 | 12,126 | 11,151 | ||||||||||||||
Noninterest Income (in-scope of Topic 606) | $ | 288,247 | $ | 290,084 | $ | 262,175 | |||||||||||
Noninterest Income (out-of-scope of Topic 606) | 92,577 | 65,484 | 70,505 | ||||||||||||||
Total Noninterest Income | $ | 380,824 | $ | 355,568 | $ | 332,680 | |||||||||||
Revenue Stream | Noninterest income in-scope of Topic 606 | |||||||
Insurance commissions and fees | The Corporation's insurance revenue has two distinct performance obligations. The first performance obligation is the selling of the policy as an agent for the carrier. This performance obligation is satisfied upon binding of the policy. The second performance obligation is the ongoing servicing of the policy which is satisfied over the life of the policy. For employee benefits, the payment is typically received monthly. For property and casualty, payments can vary, but are typically received at, or in advance, of the policy period. | |||||||
Service charges and deposit account fees | Service charges on deposit accounts consist of monthly service fees (i.e. business analysis fees and consumer service charges) and other deposit account related fees. The Corporation's performance obligation for monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Other deposit account related fees are largely transactional based, and therefore, the Corporation's performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to the customers’ accounts. | |||||||
Card-based fees(a)
|
Card-based fees are primarily comprised of debit and credit card income, ATM fees, and merchant services income. Debit and credit card income is primarily comprised of interchange fees earned whenever the Corporation's debit and credit cards are processed through card payment networks. ATM and merchant fees are largely transactional based, and therefore, the Corporation's performance obligation is satisfied, and related revenue recognized, at a point in time. Payment is typically received immediately or in the following month. | |||||||
Trust and asset management fees(b)
|
Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Corporation's performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to the customers’ accounts. The Corporation's performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. | |||||||
Brokerage and advisory fees(b)
|
Brokerage and advisory fees primarily consists of investment advisory, brokerage, retirement services, and annuities. The Corporation's performance obligation for investment advisory services and retirement services is generally satisfied, and the related revenue recognized, over the period in which the services are provided. The performance obligation for annuities is satisfied upon sale of the annuity, and therefore, the related revenue is primarily recognized at the time of sale. Payment for these services are typically received immediately or in advance of the service. |
ITEM 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
ITEM 9A. | Controls and Procedures |
ITEM 9B. | Other Information |
ITEM 10. | Directors, Executive Officers and Corporate Governance |
ITEM 11. | Executive Compensation |
ITEM 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
December 31, 2019 |
(a)
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants, and Rights |
(b)
Weighted-Average Exercise Price of Outstanding Options, Warrants, and Rights |
(c)
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (excluding securities reflected in column (a)) |
||||||||||||||
Plan Category | |||||||||||||||||
Equity compensation plan approved by security holders | 5,542,954 | $ | 20.13 | 7,561,080 | |||||||||||||
Equity compensation plans not approved by security holders | — | — | — | ||||||||||||||
Total | 5,542,954 | $ | 20.13 | 7,561,080 |
ITEM 13. | Certain Relationships and Related Transactions, and Director Independence |
ITEM 14. | Principal Accounting Fees and Services |
ITEM 15. | Exhibits and Financial Statement Schedules |
Exhibit
Number |
Description | |||||||
*(10)(d) | Associated Banc-Corp Deferred Compensation Plan | |||||||
*(10)(e) | Associated Banc-Corp Directors’ Deferred Compensation Plan, Restated Effective December 4, 2018 | |||||||
*(10)(f) | Associated Banc-Corp Deferred Compensation Plan, Restated Effective November 16, 2015 | |||||||
*(10)(g) | Amendment to Associated Banc-Corp 2003 Long-Term Incentive Stock Plan effective November 15, 2009 | |||||||
*(10)(h) | Associated Banc-Corp 2010 Incentive Compensation Plan | |||||||
*(10)(i) | Associated Banc-Corp 2013 Incentive Compensation Plan | |||||||
*(10)(j) | Associated Banc-Corp 2017 Incentive Compensation Plan | |||||||
*(10)(k) | Form of Non-Qualified Stock Option Agreement | |||||||
*(10)(l) | Associated Banc-Corp Change of Control Plan, Restated Effective September 28, 2011 | |||||||
*(10)(m) | Associated Banc-Corp Supplemental Executive Retirement Plan for Philip B. Flynn | |||||||
*(10)(n) | Form of Performance-Based Restricted Stock Unit Agreement | |||||||
*(10)(o) | Supplemental Executive Retirement Plan, Restated Effective January 22, 2013 | |||||||
*(10)(p) | Supplemental Executive Retirement Plan, Restated Effective November 16, 2015 | |||||||
*(10)(q) | Form of 2013 Incentive Compensation Plan Restricted Unit Agreement | |||||||
*(10)(r) | Form of Amendment to 2013 Incentive Compensation Plan Restricted Unit Agreement | |||||||
*(10)(s) | Form of Change of Control Agreement, by and among Associated Banc-Corp and the executive officers of Associated Banc-Corp. |
|
||||||
*(10)(t) | Form of Associated Banc-Corp 2017 Incentive Compensation Plan Restricted Stock Agreement | |||||||
(18) | Preferability Letter from KPMG regarding a change in accounting method dated October 31, 2019 | |||||||
(21) | Subsidiaries of Associated Banc-Corp | |||||||
(23) | Consent of Independent Registered Public Accounting Firm | |||||||
(24) | Powers of Attorney | |||||||
(31.1) | Certification Under Section 302 of Sarbanes-Oxley by Philip B. Flynn, Chief Executive Officer | |||||||
(31.2) | Certification Under Section 302 of Sarbanes-Oxley by Christopher J. Del Moral-Niles, Chief Financial Officer | |||||||
(32) | Certification by the Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of Sarbanes-Oxley. | |||||||
(101) | Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Stockholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements. | Filed herewith | ||||||
(104) | Cover page interactive data file (formatted as inline XBRL and contained in Exhibit 101) | Filed herewith |
* | Management contracts and arrangements. |
ITEM 16. | Form 10-K Summary |
ASSOCIATED BANC-CORP | ||||||||||||||
Date: February 11, 2020 | By: | /s/ Philip B. Flynn | ||||||||||||
Philip B. Flynn | ||||||||||||||
President and Chief Executive Officer |
Signature | Title | Date | ||||||||||||||||||
/s/ Philip B. Flynn |
President and Chief Executive Officer
(Principal Executive Officer) |
February 11, 2020 | ||||||||||||||||||
Philip B. Flynn | ||||||||||||||||||||
/s/ Christopher J. Del Moral-Niles |
Chief Financial Officer
(Principal Financial Officer) |
February 11, 2020 | ||||||||||||||||||
Christopher J. Del Moral-Niles | ||||||||||||||||||||
/s/ Tammy C. Stadler | Principal Accounting Officer | February 11, 2020 | ||||||||||||||||||
Tammy C. Stadler |
By: | /s/ Randall J. Erickson | |||||||
Randall J. Erickson | ||||||||
As Attorney-In-Fact* |
* | Pursuant to authority granted by powers of attorney, copies of which are filed herewith. |
Date: February 11, 2020 | /s/ Philip B. Flynn | |||||||
Philip B. Flynn | ||||||||
President and Chief Executive Officer |
Date: February 11, 2020 | /s/ Christopher J. Del Moral-Niles | |||||||
Christopher J. Del Moral-Niles | ||||||||
Chief Financial Officer |
/s/ Philip B. Flynn | |||||
Philip B. Flynn | |||||
Chief Executive Officer | |||||
February 11, 2020 |
/s/ Christopher J. Del Moral-Niles | |||||
Christopher J. Del Moral-Niles | |||||
Chief Financial Officer | |||||
February 11, 2020 |