☑ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||
For the fiscal year ended | December 31, 2020 |
☐ | 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 | ||||||
Depositary Shrs, each representing 1/40th intrst in a shr of 5.625% Non-Cum. Perp Pref Stock, Srs F | ASB PrF | The New York Stock Exchange |
Large accelerated filer
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Accelerated filer
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Non-accelerated filer
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Smaller reporting company
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Emerging growth company
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Page | ||||||||
ASSOCIATED BANC-CORP | ||
Commonly Used Acronyms and Abbreviations | ||
The following listing provides a reference of common acronyms and abbreviations used throughout the document: |
2020 Plan | 2020 Incentive Compensation Plan | ||||
ABRC | Associated Benefits and Risk Consulting, the Corporation's insurance division which was sold on June 30, 2020 | ||||
ABS | Asset Backed Securities | ||||
ACL | Allowance for Credit Losses on Loans and Investments | ||||
ACLL | Allowance for Credit Losses on Loans | ||||
ADC | Acquisition, Development, or Construction | ||||
AFS | Available for Sale | ||||
AFX | American Financial Exchange | ||||
ALCO | Asset / Liability Committee | ||||
Ameribor | American Interbank Offered Rate | ||||
AML | Anti-Money Laundering | ||||
APR | Annual Percentage Rate | ||||
ARRC | Alternative Reference Rate Committee | ||||
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 | ||||
ATR | Ability-to-Repay | ||||
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 | ||||
CAMELS | Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity | ||||
CARES Act | Coronavirus Aid, Relief, and Economic Security Act | ||||
CDs | Certificates of Deposit | ||||
CDIs | Core Deposit Intangibles | ||||
CECL | Current Expected Credit Losses | ||||
CET1 | Common Equity Tier 1 | ||||
CFPB | Consumer Financial Protection Bureau | ||||
CFTC | Commodity Futures Trading Commission | ||||
CMBS | Commercial Mortgage-Backed Securities | ||||
CMOs | Collateralized Mortgage Obligations | ||||
CRA | Community Reinvestment Act | ||||
CRE | Commercial Real Estate | ||||
DE&I | Diversity, Equity & Inclusion | ||||
DIF | Deposit Insurance Fund | ||||
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 | ||||
DTI | Debt-to-Income | ||||
EAR | Earnings at Risk |
Economic Aid Act | Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act | ||||
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 of Governors of the Federal Reserve System | ||||
FFELP | Federal Family Education Loan Program | ||||
FHFA | Federal Housing Finance Agency | ||||
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 | ||||
FOMC | Federal Open Market Committee | ||||
FRBNY | Federal Reserve Bank of New York | ||||
FTP | Funds Transfer Pricing | ||||
GAAP | Generally Accepted Accounting Principles | ||||
GNMA | Government National Mortgage Association | ||||
GSEs | Government-Sponsored Enterprises | ||||
HTM | Held to Maturity | ||||
Huntington | The Huntington National Bank, a subsidiary of Huntington Bancshares Incorporated | ||||
HVCRE | High Volatility Commercial Real Estate | ||||
IDIs | Insured Depository Institutions | ||||
LGBTQ+ | Lesbian, Gay, Bisexual, Transgender, Queer, and Plus | ||||
LIBOR | London Interbank Offered Rate | ||||
LTV | Loan-to-Value | ||||
MBS | Mortgage-Backed Securities | ||||
MMLF | Money Market Mutual Fund Liquidity Facility | ||||
MSAs | Mortgage Servicing Assets | ||||
MSLP | Main Street Lending Program | ||||
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 | ||||
PCD | Purchased Credit Deteriorated |
PPP | Paycheck Protection Program | ||||
PPPLF | Paycheck Protection Program Liquidity Facility | ||||
QM | Qualified Mortgage | ||||
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 applicable equity compensation plan | ||||
Rockefeller | Rockefeller Capital Management | ||||
S&P | Standard & Poor's | ||||
SARs | Suspicious Activity Reports | ||||
SBA | Small Business Administration | ||||
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 | ||||
Series F Preferred Stock | The Corporation's 5.625% Non-Cumulative Perpetual Preferred Stock, Series F, liquidation preference $1,000 per share | ||||
SOFR | Secured Overnight Finance Rate | ||||
Tax Act | U.S. Tax Cuts and Jobs Act of 2017 | ||||
TDR | Troubled Debt Restructuring | ||||
TILA | Truth in Lending Act | ||||
USI | USI Insurance Services LLC | ||||
Whitnell | Whitnell & Co. | ||||
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 |
Total Number of
Shares Purchased(a)
|
Average Price
Paid per Share |
Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programs |
Maximum Number of
Shares that May Yet
Be Purchased Under
the Plans
or Programs(b)
|
||||||||||||||||||||
Period | |||||||||||||||||||||||
October 1, 2020 - October 31, 2020 | 3,999 | $ | 13.65 | — | — | ||||||||||||||||||
November 1, 2020 - November 30, 2020 | 2,553 | 13.63 | — | — | |||||||||||||||||||
December 1, 2020 - December 31, 2020 | 832 | 16.72 | — | — | |||||||||||||||||||
Total | 7,384 | $ | 13.99 | — | 6,604,168 |
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||
Associated Banc-Corp | $ | 100.0 | $ | 134.1 | $ | 140.6 | $ | 113.0 | $ | 129.8 | $ | 104.7 | ||||||||
S&P 500 Index | $ | 100.0 | $ | 111.8 | $ | 135.9 | $ | 130.1 | $ | 170.7 | $ | 201.6 | ||||||||
S&P 400 Regional Banks Sub-Industry Index | $ | 100.0 | $ | 132.3 | $ | 139.0 | $ | 109.9 | $ | 136.7 | $ | 123.9 |
ITEM 6. | Selected Financial Data |
Years Ended December 31, | |||||||||||||||||
($ in Thousands, except per share data) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Interest income | $ | 912,840 | $ | 1,172,610 | $ | 1,154,137 | $ | 886,605 | $ | 791,568 | |||||||
Interest expense | 149,883 | 336,936 | 274,557 | 145,385 | 84,295 | ||||||||||||
Net interest income | 762,957 | 835,674 | 879,580 | 741,220 | 707,273 | ||||||||||||
Provision for credit losses | 174,006 | 16,000 | — | 26,000 | 70,000 | ||||||||||||
Net interest income after provision for credit losses | 588,950 | 819,674 | 879,580 | 715,220 | 637,273 | ||||||||||||
Noninterest income | 514,056 | 380,824 | 355,568 | 332,680 | 352,883 | ||||||||||||
Noninterest expense | 776,034 | 793,988 | 821,799 | 709,133 | 702,560 | ||||||||||||
Income before income taxes | 326,972 | 406,509 | 413,349 | 338,767 | 287,596 | ||||||||||||
Income tax expense | 20,200 | 79,720 | 79,786 | 109,503 | 87,322 | ||||||||||||
Net income | 306,771 | 326,790 | 333,562 | 229,264 | 200,274 | ||||||||||||
Preferred stock dividends | 18,358 | 15,202 | 10,784 | 9,347 | 8,903 | ||||||||||||
Net income available to common equity | $ | 288,413 | $ | 311,587 | $ | 322,779 | $ | 219,917 | $ | 191,371 | |||||||
Earnings per common share | |||||||||||||||||
Basic | $ | 1.87 | $ | 1.93 | $ | 1.92 | $ | 1.45 | $ | 1.27 | |||||||
Diluted | 1.86 | 1.91 | 1.89 | 1.42 | 1.26 | ||||||||||||
Cash dividends per common share | 0.72 | 0.69 | 0.62 | 0.50 | 0.45 | ||||||||||||
Weighted average common shares outstanding | |||||||||||||||||
Basic | 153,005 | 160,534 | 167,345 | 150,877 | 148,769 | ||||||||||||
Diluted | 153,642 | 161,932 | 169,732 | 153,647 | 149,961 | ||||||||||||
Selected Financial Data | |||||||||||||||||
Year-End Balances | |||||||||||||||||
Loans | $ | 24,451,724 | $ | 22,821,440 | $ | 22,940,429 | $ | 20,784,991 | $ | 20,054,716 | |||||||
Allowance for credit losses on loans
|
431,478 | 223,278 | 262,359 | 290,280 | 303,735 | ||||||||||||
Investment securities, net(a)
|
4,979,485 | 5,482,759 | 6,689,021 | 6,326,299 | 5,953,762 | ||||||||||||
Total assets | 33,419,783 | 32,386,478 | 33,615,122 | 30,443,626 | 29,139,315 | ||||||||||||
Deposits | 26,482,481 | 23,779,064 | 24,897,393 | 22,785,962 | 21,888,448 | ||||||||||||
Short- and long-term funding, and FHLB advances | 2,434,505 | 4,195,423 | 4,527,056 | 4,073,732 | 3,853,830 | ||||||||||||
Stockholders’ equity(a)
|
4,090,933 | 3,922,124 | 3,780,888 | 3,237,443 | 3,091,312 | ||||||||||||
Book value per common share | 24.34 | 23.32 | 21.43 | 20.13 | 19.27 | ||||||||||||
Tangible book value per common share | 16.67 | 15.28 | 13.86 | 13.65 | 12.78 | ||||||||||||
Average Balances | |||||||||||||||||
Loans | $ | 24,537,648 | $ | 23,122,797 | $ | 22,718,297 | $ | 20,592,383 | $ | 19,650,667 | |||||||
Investment securities | 5,226,571 | 6,194,465 | 6,912,921 | 6,028,262 | 6,048,563 | ||||||||||||
Earning assets | 30,832,007 | 29,820,829 | 30,049,793 | 26,999,884 | 26,026,661 | ||||||||||||
Total assets | 34,265,207 | 33,046,604 | 33,007,859 | 29,467,324 | 28,506,112 | ||||||||||||
Deposits | 26,007,685 | 24,735,608 | 24,072,049 | 21,923,602 | 21,005,772 | ||||||||||||
Interest-bearing liabilities | 22,992,211 | 23,535,115 | 23,699,823 | 21,045,399 | 20,122,402 | ||||||||||||
Stockholders’ equity | 3,944,572 | 3,871,869 | 3,692,433 | 3,172,634 | 3,022,962 | ||||||||||||
Risk-based Capital(b)
|
|||||||||||||||||
Total risk-weighted assets | $ | 25,903,415 | $ | 24,296,382 | $ | 23,842,542 | $ | 21,504,495 | $ | 21,340,951 | |||||||
Common equity Tier 1 | 2,706,010 | 2,480,698 | 2,449,721 | 2,171,508 | 2,032,587 | ||||||||||||
Common equity Tier 1 capital ratio | 10.45 | % | 10.21 | % | 10.27 | % | 10.10 | % | 9.52 | % | |||||||
Return on average common equity Tier 1 | 11.23 | % | 12.59 | % | 13.15 | % | 10.43 | % | 9.86 | % |
ITEM 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
($ 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 PPP lending | $ | 701,111 | $ | 21,867 | 3.12 | % | $ | — | $ | — | — | % | $ | — | $ | — | — | % | |||||||||||||||||
Commercial and business lending (excl PPP loans) | 8,709,043 | 258,738 | 2.97 | % | 8,426,774 | 385,072 | 4.57 | % | 7,744,640 | 349,266 | 4.51 | % | |||||||||||||||||||||||
Commercial real estate lending | 5,811,498 | 192,545 | 3.31 | % | 5,150,464 | 255,582 | 4.96 | % | 5,433,361 | 273,937 | 5.04 | % | |||||||||||||||||||||||
Total commercial | 15,221,651 | 473,150 | 3.11 | % | 13,577,238 | 640,655 | 4.72 | % | 13,178,001 | 623,203 | 4.73 | % | |||||||||||||||||||||||
Residential mortgage | 8,190,190 | 254,814 | 3.11 | % | 8,311,914 | 282,134 | 3.39 | % | 8,289,432 | 281,814 | 3.40 | % | |||||||||||||||||||||||
Retail | 1,125,806 | 58,655 | 5.21 | % | 1,233,646 | 76,939 | 6.24 | % | 1,250,863 | 73,605 | 5.88 | % | |||||||||||||||||||||||
Total loans | 24,537,648 | 786,619 | 3.21 | % | 23,122,797 | 999,727 | 4.32 | % | 22,718,297 | 978,622 | 4.31 | % | |||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||||||||||||||
Taxable | 3,295,718 | 59,806 | 1.81 | % | 4,284,991 | 100,304 | 2.34 | % | 5,366,825 | 119,741 | 2.23 | % | |||||||||||||||||||||||
Tax-exempt(a)
|
1,930,853 | 72,901 | 3.78 | % | 1,909,474 | 71,956 | 3.77 | % | 1,546,096 | 56,426 | 3.65 | % | |||||||||||||||||||||||
Other short-term investments | 1,067,788 | 9,473 | 0.89 | % | 503,566 | 16,643 | 3.30 | % | 418,576 | 12,623 | 3.02 | % | |||||||||||||||||||||||
Investments and other | 6,294,359 | 142,179 | 2.26 | % | 6,698,032 | 188,903 | 2.82 | % | 7,331,497 | 188,790 | 2.58 | % | |||||||||||||||||||||||
Total earning assets | $ | 30,832,007 | $ | 928,799 | 3.01 | % | $ | 29,820,829 | $ | 1,188,630 | 3.99 | % | $ | 30,049,793 | $ | 1,167,412 | 3.88 | % | |||||||||||||||||
Other assets, net | 3,433,200 | 3,225,775 | 2,958,066 | ||||||||||||||||||||||||||||||||
Total assets | $ | 34,265,207 | $ | 33,046,604 | $ | 33,007,859 | |||||||||||||||||||||||||||||
Liabilities and stockholders' equity | |||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits | |||||||||||||||||||||||||||||||||||
Savings | $ | 3,306,385 | $ | 2,966 | 0.09 | % | $ | 2,439,872 | $ | 7,086 | 0.29 | % | $ | 1,878,960 | $ | 1,435 | 0.08 | % | |||||||||||||||||
Interest-bearing demand | 5,583,144 | 12,496 | 0.22 | % | 5,080,857 | 56,742 | 1.12 | % | 4,767,873 | 44,911 | 0.94 | % | |||||||||||||||||||||||
Money market | 6,509,924 | 15,273 | 0.23 | % | 7,005,265 | 74,467 | 1.06 | % | 7,260,692 | 54,573 | 0.75 | % | |||||||||||||||||||||||
Network transaction deposits | 1,442,951 | 6,219 | 0.43 | % | 1,860,951 | 42,523 | 2.29 | % | 2,095,715 | 39,251 | 1.87 | % | |||||||||||||||||||||||
Time deposits | 2,281,040 | 30,685 | 1.35 | % | 3,129,142 | 56,468 | 1.80 | % | 2,831,229 | 35,948 | 1.27 | % | |||||||||||||||||||||||
Total interest-bearing deposits | 19,123,444 | 67,639 | 0.35 | % | 19,516,088 | 237,286 | 1.22 | % | 18,834,469 | 176,118 | 0.94 | % | |||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 175,713 | 485 | 0.28 | % | 137,679 | 1,579 | 1.15 | % | 224,967 | 2,006 | 0.89 | % | |||||||||||||||||||||||
Commercial paper | 38,583 | 41 | 0.11 | % | 32,123 | 138 | 0.43 | % | 56,076 | 180 | 0.32 | % | |||||||||||||||||||||||
PPPLF | 565,371 | 1,984 | 0.35 | % | — | — | — | % | — | — | — | % | |||||||||||||||||||||||
Other short-term funding | 4,226 | 11 | 0.25 | % | — | — | — | % | — | — | — | % | |||||||||||||||||||||||
FHLB advances | 2,535,731 | 57,359 | 2.26 | % | 3,106,279 | 69,816 | 2.25 | % | 3,971,797 | 73,668 | 1.85 | % | |||||||||||||||||||||||
Long-term funding | 549,143 | 22,365 | 4.07 | % | 742,946 | 28,116 | 3.78 | % | 612,513 | 22,585 | 3.69 | % | |||||||||||||||||||||||
Total short and long-term funding | 3,868,767 | 82,245 | 2.13 | % | 4,019,027 | 99,651 | 2.48 | % | 4,865,353 | 98,439 | 2.02 | % | |||||||||||||||||||||||
Total interest-bearing liabilities | $ | 22,992,211 | $ | 149,883 | 0.65 | % | $ | 23,535,115 | $ | 336,936 | 1.43 | % | $ | 23,699,823 | $ | 274,557 | 1.16 | % | |||||||||||||||||
Noninterest-bearing demand deposits | 6,884,241 | 5,219,520 | 5,237,580 | ||||||||||||||||||||||||||||||||
Other liabilities | 444,183 | 420,100 | 378,024 | ||||||||||||||||||||||||||||||||
Stockholders’ equity | 3,944,572 | 3,871,869 | 3,692,433 | ||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 34,265,207 | $ | 33,046,604 | $ | 33,007,859 | |||||||||||||||||||||||||||||
Interest rate spread | 2.36 | % | 2.56 | % | 2.72 | % | |||||||||||||||||||||||||||||
Net free funds | 0.17 | % | 0.30 | % | 0.25 | % | |||||||||||||||||||||||||||||
Fully tax-equivalent net interest income and net interest margin | $ | 778,915 | 2.53 | % | $ | 851,693 | 2.86 | % | $ | 892,855 | 2.97 | % | |||||||||||||||||||||||
Fully tax-equivalent adjustment | $ | 15,959 | $ | 16,020 | $ | 13,275 | |||||||||||||||||||||||||||||
Net interest income | $ | 762,957 | $ | 835,674 | $ | 879,580 |
2020 Compared to 2019
Increase (Decrease) Due to |
2019 Compared to 2018
Increase (Decrease) Due to |
|||||||||||||||||||
($ in Thousands) | Volume | Rate | Net | Volume | Rate | Net | ||||||||||||||
Interest income | ||||||||||||||||||||
Loans(b)
|
||||||||||||||||||||
Commercial PPP lending | $ | 21,867 | $ | — | $ | 21,867 | $ | — | — | — | ||||||||||
Commercial and business lending (excl PPP loans) | 12,504 | (138,838) | (126,334) | 31,118 | 4,689 | 35,807 | ||||||||||||||
Commercial real estate lending | 29,765 | (92,803) | (63,037) | (14,090) | (4,264) | (18,355) | ||||||||||||||
Total commercial | 64,137 | (231,641) | (167,504) | 17,027 | 425 | 17,452 | ||||||||||||||
Residential mortgage | (4,080) | (23,240) | (27,320) | 764 | (444) | 320 | ||||||||||||||
Retail | (6,342) | (11,942) | (18,283) | (1,024) | 4,358 | 3,333 | ||||||||||||||
Total loans | 53,715 | (266,823) | (213,108) | 16,766 | 4,339 | 21,105 | ||||||||||||||
Investment securities | ||||||||||||||||||||
Taxable | (20,520) | (19,978) | (40,498) | (25,091) | 5,654 | (19,437) | ||||||||||||||
Tax-exempt(b)
|
807 | 138 | 945 | 13,641 | 1,889 | 15,530 | ||||||||||||||
Other short-term investments | 10,394 | (17,564) | (7,170) | 2,730 | 1,289 | 4,019 | ||||||||||||||
Investments and other | (9,319) | (37,404) | (46,723) | (8,720) | 8,833 | 112 | ||||||||||||||
Total earning assets | $ | 44,396 | $ | (304,227) | $ | (259,831) | $ | 8,046 | $ | 13,172 | $ | 21,218 | ||||||||
Interest expense | ||||||||||||||||||||
Savings | $ | 1,926 | $ | (6,046) | $ | (4,120) | $ | 544 | $ | 5,107 | $ | 5,651 | ||||||||
Interest-bearing demand | 5,116 | (49,361) | (44,246) | 3,091 | 8,740 | 11,831 | ||||||||||||||
Money market | (4,924) | (54,270) | (59,194) | (1,982) | 21,876 | 19,894 | ||||||||||||||
Network transaction deposits | (7,871) | (28,433) | (36,304) | (4,723) | 7,995 | 3,272 | ||||||||||||||
Time deposits | (13,656) | (12,128) | (25,783) | 3,839 | 16,681 | 20,520 | ||||||||||||||
Total interest-bearing deposits | (19,409) | (150,238) | (169,647) | 769 | 60,399 | 61,168 | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 348 | (1,442) | (1,094) | (907) | 480 | (427) | ||||||||||||||
Commercial paper | 23 | (121) | (98) | (91) | 50 | (41) | ||||||||||||||
PPPLF | 1,984 | — | 1,984 | — | — | — | ||||||||||||||
Other short-term funding | 11 | — | 11 | — | — | — | ||||||||||||||
FHLB advances | (12,903) | 446 | (12,457) | (17,778) | 13,926 | (3,852) | ||||||||||||||
Long-term funding | (7,767) | 2,015 | (5,751) | 4,922 | 609 | 5,531 | ||||||||||||||
Total short and long-term funding | (18,304) | 898 | (17,406) | (13,854) | 15,065 | 1,212 | ||||||||||||||
Total interest-bearing liabilities | (37,713) | (149,340) | (187,053) | (13,084) | 75,464 | 62,380 | ||||||||||||||
Fully tax-equivalent net interest income | $ | 82,109 | $ | (154,887) | $ | (72,778) | $ | 21,130 | $ | (62,292) | $ | (41,162) |
Years Ended December 31, | Change From Prior Year | ||||||||||||||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | $ Change 2020 |
% Change
2020 |
$ Change
2019 |
% Change
2019 |
||||||||||||||||
Wealth management fees(a)
|
$ | 84,957 | $ | 83,467 | $ | 82,562 | $ | 1,490 | 2 | % | $ | 905 | 1 | % | |||||||||
Service charges and deposit account fees | 56,307 | 63,135 | 66,075 | (6,828) | (11) | % | (2,940) | (4) | % | ||||||||||||||
Card-based fees | 38,534 | 39,755 | 39,656 | (1,221) | (3) | % | 99 | — | % | ||||||||||||||
Other fee-based revenue | 19,238 | 18,942 | 17,818 | 296 | 2 | % | 1,124 | 6 | % | ||||||||||||||
Total fee-based revenue | 199,036 | 205,299 | 206,111 | (6,263) | (3) | % | (812) | — | % | ||||||||||||||
Capital markets, net | 27,966 | 19,862 | 20,120 | 8,104 | 41 | % | (258) | (1) | % | ||||||||||||||
Mortgage servicing fees, net(b)
|
(648) | 10,141 | 13,090 | (10,789) | (106) | % | (2,949) | (23) | % | ||||||||||||||
Gains (losses) and fair value adjustment on loans held for sale | 60,000 | 17,344 | 6,276 | 42,656 | N/M | 11,068 | 176 | % | |||||||||||||||
Fair value adjustment on portfolio loans transferred to held for sale | 3,932 | 4,456 | — | (524) | (12) | % | 4,456 | N/M | |||||||||||||||
Mortgage servicing rights (impairment) recovery | (17,704) | (63) | 545 | (17,641) | N/M | (608) | (112) | % | |||||||||||||||
Mortgage banking, net | 45,580 | 31,878 | 19,911 | 13,702 | 43 | % | 11,967 | 60 | % | ||||||||||||||
Bank and corporate owned life insurance | 13,771 | 14,845 | 13,951 | (1,074) | (7) | % | 894 | 6 | % | ||||||||||||||
Insurance commissions and fees | 45,245 | 89,104 | 89,511 | (43,859) | (49) | % | (407) | — | % | ||||||||||||||
Other | 10,200 | 11,165 | 9,051 | (965) | (9) | % | 2,114 | 23 | % | ||||||||||||||
Subtotal | 341,798 | 372,154 | 358,655 | (30,356) | (8) | % | 13,499 | 4 | % | ||||||||||||||
Asset gains (losses), net (c)
|
155,589 | 2,713 | (1,103) | 152,876 | N/M | 3,816 | N/M | ||||||||||||||||
Investment securities gains (losses), net | 9,222 | 5,957 | (1,985) | 3,265 | 55 | % | 7,942 | N/M | |||||||||||||||
Gains on sale of branches, net | 7,449 | — | — | 7,449 | N/M | — | N/M | ||||||||||||||||
Total noninterest income | $ | 514,056 | $ | 380,824 | $ | 355,568 | $ | 133,232 | 35 | % | $ | 25,256 | 7 | % | |||||||||
Mortgage loans originated for sale during period | $ | 1,642,135 | $ | 1,090,792 | $ | 1,092,318 | $ | 551,343 | 51 | % | $ | (1,526) | — | % | |||||||||
Mortgage loan settlements during period | $ | 1,959,571 | $ | 1,317,077 | $ | 1,131,652 | $ | 642,494 | 49 | % | $ | 185,425 | 16 | % | |||||||||
Mortgage portfolio loans transferred to held for sale during period | $ | 269,203 | $ | 242,382 | $ | — | $ | 26,821 | 11 | % | $ | 242,382 | N/M | ||||||||||
Assets under management, at market value(d)
|
$ | 13,314 | $ | 12,104 | $ | 10,291 | $ | 1,210 | 10 | % | $ | 1,813 | 18 | % |
Years Ended December 31, | Change From Prior Year | ||||||||||||||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | $ Change 2020 |
% Change
2020 |
$ Change
2019 |
% Change
2019 |
||||||||||||||||
Personnel | $ | 432,151 | $ | 487,063 | $ | 482,676 | $ | (54,912) | (11) | % | $ | 4,387 | 1 | % | |||||||||
Technology | 81,214 | 82,429 | 72,674 | (1,215) | (1) | % | 9,755 | 13 | % | ||||||||||||||
Occupancy | 64,064 | 62,399 | 59,121 | 1,665 | 3 | % | 3,278 | 6 | % | ||||||||||||||
Business development and advertising | 18,428 | 29,600 | 30,923 | (11,172) | (38) | % | (1,323) | (4) | % | ||||||||||||||
Equipment | 21,705 | 23,550 | 23,243 | (1,845) | (8) | % | 307 | 1 | % | ||||||||||||||
Legal and professional | 21,546 | 19,901 | 23,061 | 1,645 | 8 | % | (3,160) | (14) | % | ||||||||||||||
Loan and foreclosure costs | 12,600 | 8,861 | 7,410 | 3,739 | 42 | % | 1,451 | 20 | % | ||||||||||||||
FDIC assessment | 20,350 | 16,250 | 30,000 | 4,100 | 25 | % | (13,750) | (46) | % | ||||||||||||||
Other intangible amortization | 10,192 | 9,948 | 8,159 | 244 | 2 | % | 1,789 | 22 | % | ||||||||||||||
Acquisition related costs(a)
|
2,447 | 7,320 | 29,002 | (4,873) | (67) | % | (21,682) | (75) | % | ||||||||||||||
Loss on prepayments of FHLB advances | 44,650 | — | — | 44,650 | N/M | — | N/M | ||||||||||||||||
Other | 46,688 | 46,666 | 55,530 | 22 | — | % | (8,864) | (16) | % | ||||||||||||||
Total noninterest expense | $ | 776,034 | $ | 793,988 | $ | 821,799 | $ | (17,954) | (2) | % | $ | (27,811) | (3) | % | |||||||||
Average full-time equivalent employees(b)
|
4,459 | 4,702 | 4,699 | (243) | (5) | % | 3 | — | % |
As of December 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||
($ in Thousands) | Amount |
% of
Total |
Amount |
% of
Total |
Amount |
% of
Total |
Amount |
% of
Total |
Amount |
% of
Total |
||||||||||||||||||||||
PPP | $ | 767,757 | 3 | % | $ | — | — | % | $ | — | — | % | $ | — | — | % | $ | — | — | % | ||||||||||||
Commercial and industrial | 7,701,422 | 31 | % | 7,354,594 | 32 | % | 7,398,044 | 32 | % | 6,399,693 | 31 | % | 6,489,014 | 32 | % | |||||||||||||||||
Commercial real estate — owner occupied | 900,912 | 4 | % | 911,265 | 4 | % | 920,443 | 4 | % | 802,209 | 4 | % | 897,724 | 5 | % | |||||||||||||||||
Commercial and business lending | 9,370,091 | 38 | % | 8,265,858 | 36 | % | 8,318,487 | 36 | % | 7,201,902 | 35 | % | 7,386,738 | 37 | % | |||||||||||||||||
Commercial real estate — investor | 4,342,584 | 18 | % | 3,794,517 | 17 | % | 3,751,554 | 16 | % | 3,315,254 | 16 | % | 3,574,732 | 18 | % | |||||||||||||||||
Real estate construction | 1,840,417 | 8 | % | 1,420,900 | 6 | % | 1,335,031 | 6 | % | 1,451,684 | 7 | % | 1,432,497 | 7 | % | |||||||||||||||||
Commercial real estate lending | 6,183,001 | 25 | % | 5,215,417 | 23 | % | 5,086,585 | 22 | % | 4,766,938 | 23 | % | 5,007,229 | 25 | % | |||||||||||||||||
Total commercial | 15,553,091 | 64 | % | 13,481,275 | 59 | % | 13,405,072 | 58 | % | 11,968,840 | 58 | % | 12,393,967 | 62 | % | |||||||||||||||||
Residential mortgage | 7,878,324 | 32 | % | 8,136,980 | 36 | % | 8,277,712 | 36 | % | 7,546,534 | 36 | % | 6,332,327 | 31 | % | |||||||||||||||||
Home equity | 707,255 | 3 | % | 852,025 | 4 | % | 894,473 | 4 | % | 883,804 | 4 | % | 934,443 | 5 | % | |||||||||||||||||
Other consumer | 313,054 | 1 | % | 351,159 | 2 | % | 363,171 | 2 | % | 385,813 | 2 | % | 393,979 | 2 | % | |||||||||||||||||
Total consumer | 8,898,632 | 36 | % | 9,340,164 | 41 | % | 9,535,357 | 42 | % | 8,816,151 | 42 | % | 7,660,749 | 38 | % | |||||||||||||||||
Total loans | $ | 24,451,724 | 100 | % | $ | 22,821,440 | 100 | % | $ | 22,940,429 | 100 | % | $ | 20,784,991 | 100 | % | $ | 20,054,716 | 100 | % | ||||||||||||
Commercial real estate and real estate construction loan detail | ||||||||||||||||||||||||||||||||
Non-owner occupied | $ | 2,969,906 | 68 | % | $ | 2,589,838 | 68 | % | $ | 2,545,751 | 68 | % | $ | 2,361,382 | 71 | % | $ | 2,545,578 | 71 | % | ||||||||||||
Multi-family | 1,360,305 | 31 | % | 1,201,835 | 32 | % | 1,204,552 | 32 | % | 952,473 | 29 | % | 1,027,541 | 29 | % | |||||||||||||||||
Farmland | 12,373 | — | % | 2,844 | — | % | 1,250 | — | % | 1,399 | — | % | 1,613 | — | % | |||||||||||||||||
Commercial real estate — investor | $ | 4,342,584 | 100 | % | $ | 3,794,517 | 100 | % | $ | 3,751,554 | 100 | % | $ | 3,315,254 | 100 | % | $ | 3,574,732 | 100 | % | ||||||||||||
1-4 family construction | $ | 270,467 | 15 | % | $ | 261,908 | 18 | % | $ | 289,558 | 22 | % | $ | 353,902 | 24 | % | $ | 358,398 | 25 | % | ||||||||||||
All other construction | 1,569,950 | 85 | % | 1,158,992 | 82 | % | 1,045,474 | 78 | % | 1,097,782 | 76 | % | 1,074,099 | 75 | % | |||||||||||||||||
Real estate construction | $ | 1,840,417 | 100 | % | $ | 1,420,900 | 100 | % | $ | 1,335,031 | 100 | % | $ | 1,451,684 | 100 | % | $ | 1,432,497 | 100 | % |
December 31, 2020 | % of Total Loans | % of Total Commercial and Business Lending | ||||||
Finance and Insurance | 7 | % | 18 | % | ||||
Power and Utilities | 7 | % | 17 | % | ||||
Manufacturing and Wholesale Trade | 7 | % | 17 | % | ||||
Real Estate | 5 | % | 12 | % |
Years Ended December 31, | |||||||||||||||||
($ in Millions) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Pass | $ | 196 | $ | 408 | $ | 678 | $ | 483 | $ | 426 | |||||||
Special mention | 22 | 9 | 9 | — | 20 | ||||||||||||
Potential problem | 41 | 43 | 39 | 40 | 75 | ||||||||||||
Nonaccrual | 37 | 23 | 22 | 77 | 147 | ||||||||||||
Total oil and gas related loans | $ | 296 | $ | 484 | $ | 747 | $ | 600 | $ | 668 | |||||||
Annual net charge offs | 52 | 44 | 17 | 25 | 59 | ||||||||||||
Oil and gas related allowance for loan losses | 51 | 12 | 12 | 27 | 38 | ||||||||||||
Oil and gas related ACLL on loans | 54 | 13 | 13 | 28 | 40 | ||||||||||||
Oil and gas ACLL to oil and gas loans | 18.1 | % | 2.7 | % | 1.8 | % | 4.6 | % | 6.0 | % |
December 31, 2019 | January 1, 2020 | |||||||||||||
($ in Millions) | Allowance for Loan Losses | Allowance for Unfunded Commitments | CECL Day 1 Adjustment | ACLL | ||||||||||
Oil and Gas | $ | 12 | $ | 1 | $ | 55 | $ | 69 |
($ in Millions) | Dec. 31, 2019 | Cumulative effect of ASU 2016-13 adoption (CECL) | Jan. 1, 2020 | Charge offs | Recoveries | Net Charge offs | Provision for credit losses | Dec. 31, 2020 | ACLL / Loans | ||||||||||||||||||||
Allowance for loan losses | $ | 12 | $ | 53 | $ | 66 | $ | (55) | $ | 3 | $ | (52) | $ | 37 | $ | 51 | |||||||||||||
Allowance for unfunded commitments | 1 | 2 | 3 | — | — | — | — | 3 | |||||||||||||||||||||
Allowance for credit losses on loans | $ | 13 | $ | 55 | $ | 69 | $ | (55) | $ | 3 | $ | (52) | $ | 37 | $ | 54 | 18.1 | % |
($ in Millions) | Dec. 31, 2018 | Charge offs | Recoveries | Net Charge offs | Provision for loan losses | Dec. 31, 2019 | |||||||||||||||||||||||
Allowance for loan losses | $ | 12 | $ | (50) | $ | 5 | $ | (44) | $ | 45 | $ | 12 |
December 31, 2020 | % of Total Loans | % of Total Commercial Real Estate - Investor | ||||||
Multi-Family | 6 | % | 31 | % | ||||
Office | 4 | % | 23 | % | ||||
Retail | 4 | % | 20 | % | ||||
Industrial | 3 | % | 17 | % |
December 31, 2020 | % of Total Loans | % of Total Real Estate Construction | ||||||
Multi-Family | 3 | % | 37 | % |
($ in Thousands) | Originated Loans | Originated Balance | Outstanding Balance | Impacted Jobs | ||||||||||
>=$2,000,000 | 99 | $ | 335,534 | $ | 294,316 | 26,688 | ||||||||
< $2,000,000 And > $350,000 | 485 | 386,062 | 228,812 | 37,266 | ||||||||||
<=$350,000 | 7,495 | 343,895 | 244,628 | 50,412 | ||||||||||
Total | 8,079 | $ | 1,065,491 | $ | 767,757 | 114,366 |
($ in Thousands) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | |||||||||||||
Commercial and business lending | $ | 12,377 | $ | 61,535 | $ | 187,708 | $ | 345 | |||||||||
Commercial real estate | 18,368 | 248,842 | 675,382 | 595 | |||||||||||||
Total consumer | 47,835 | 375,794 | 724,921 | 428 | |||||||||||||
Total | $ | 78,579 | $ | 686,171 | $ | 1,588,011 | $ | 1,368 |
As of December 31, | |||||||||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Nonperforming assets | |||||||||||||||||
Commercial and industrial | $ | 61,859 | $ | 46,312 | $ | 41,021 | $ | 112,786 | $ | 183,371 | |||||||
Commercial real estate — owner occupied | 1,058 | 67 | 3,957 | 22,740 | 9,544 | ||||||||||||
Commercial and business lending | 62,917 | 46,380 | 44,978 | 135,526 | 192,915 | ||||||||||||
Commercial real estate — investor | 78,220 | 4,409 | 1,952 | 4,729 | 18,051 | ||||||||||||
Real estate construction | 353 | 493 | 979 | 974 | 844 | ||||||||||||
Commercial real estate lending | 78,573 | 4,902 | 2,931 | 5,703 | 18,895 | ||||||||||||
Total commercial | 141,490 | 51,282 | 47,909 | 141,229 | 211,810 | ||||||||||||
Residential mortgage | 59,337 | 57,844 | 67,574 | 53,632 | 50,236 | ||||||||||||
Home equity | 9,888 | 9,104 | 12,339 | 13,514 | 13,001 | ||||||||||||
Other consumer | 140 | 152 | 79 | 171 | 256 | ||||||||||||
Total consumer | 69,364 | 67,099 | 79,992 | 67,317 | 63,493 | ||||||||||||
Total nonaccrual loans | 210,854 | 118,380 | 127,901 | 208,546 | 275,303 | ||||||||||||
Commercial real estate owned | 2,185 | 3,530 | 4,047 | 6,735 | 7,176 | ||||||||||||
Residential real estate owned | 1,194 | 5,696 | 2,963 | 5,873 | 3,098 | ||||||||||||
Bank properties real estate owned | 10,889 | 11,874 | 4,974 | — | — | ||||||||||||
OREO | 14,269 | 21,101 | 11,984 | 12,608 | 10,274 | ||||||||||||
Other nonperforming assets | — | 6,004 | — | 7,418 | 7,418 | ||||||||||||
Total nonperforming assets | $ | 225,123 | $ | 145,485 | $ | 139,885 | $ | 228,572 | $ | 292,995 | |||||||
Accruing loans past due 90 days or more | |||||||||||||||||
Commercial | $ | 175 | $ | 342 | $ | 311 | $ | 418 | $ | 236 | |||||||
Consumer | 1,423 | 1,917 | 1,853 | 1,449 | 1,377 | ||||||||||||
Total accruing loans past due 90 days or more | $ | 1,598 | $ | 2,259 | $ | 2,165 | $ | 1,867 | $ | 1,613 | |||||||
Restructured loans (accruing)(a)
|
|||||||||||||||||
Commercial | $ | 41,119 | $ | 18,944 | $ | 28,668 | $ | 48,735 | $ | 53,022 | |||||||
Consumer | 10,973 | 7,097 | 24,595 | 25,883 | 26,835 | ||||||||||||
Total restructured loans (accruing) | $ | 52,092 | $ | 26,041 | $ | 53,263 | $ | 74,618 | $ | 79,857 | |||||||
Nonaccrual restructured loans (included in nonaccrual loans) | $ | 20,190 | $ | 22,494 | $ | 26,292 | $ | 23,486 | $ | 29,385 | |||||||
Ratios at year end | |||||||||||||||||
Nonaccrual loans to total loans | 0.86 | % | 0.52 | % | 0.56 | % | 1.00 | % | 1.37 | % | |||||||
NPAs to total loans plus OREO | 0.92 | % | 0.64 | % | 0.61 | % | 1.10 | % | 1.46 | % | |||||||
NPAs to total assets | 0.67 | % | 0.45 | % | 0.42 | % | 0.75 | % | 1.01 | % | |||||||
Allowance for credit losses on loans to nonaccrual loans | 204.63 | % | 188.61 | % | 205.13 | % | 139.19 | % | 110.33 | % |
Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Accruing loans 30-89 days past due | |||||||||||||||||
Commercial and industrial | $ | 6,119 | $ | 821 | $ | 525 | $ | 271 | $ | 1,413 | |||||||
Commercial real estate — owner occupied | 373 | 1,369 | 2,699 | 48 | 1,384 | ||||||||||||
Commercial and business lending | 6,492 | 2,190 | 3,224 | 319 | 2,797 | ||||||||||||
Commercial real estate — investor | 12,793 | 1,812 | 3,767 | 374 | 931 | ||||||||||||
Real estate construction | 991 | 97 | 330 | 251 | 369 | ||||||||||||
Commercial real estate lending | 13,784 | 1,909 | 4,097 | 625 | 1,300 | ||||||||||||
Total commercial | 20,276 | 4,099 | 7,321 | 944 | 4,097 | ||||||||||||
Residential mortgage | 10,385 | 9,274 | 9,706 | 9,552 | 8,142 | ||||||||||||
Home equity | 4,802 | 5,647 | 6,049 | 6,825 | 5,849 | ||||||||||||
Other consumer | 1,599 | 2,083 | 2,269 | 2,007 | 3,189 | ||||||||||||
Total consumer | 16,786 | 17,005 | 18,024 | 18,384 | 17,180 | ||||||||||||
Total accruing loans 30-89 days past due | $ | 37,062 | $ | 21,104 | $ | 25,345 | $ | 19,328 | $ | 21,277 | |||||||
Potential problem loans | |||||||||||||||||
PPP(a)
|
$ | 18,002 | $ | — | $ | — | $ | — | $ | — | |||||||
Commercial and industrial | 121,487 | 110,308 | 116,578 | 113,778 | 227,196 | ||||||||||||
Commercial real estate — owner occupied | 26,179 | 19,889 | 55,964 | 41,997 | 64,524 | ||||||||||||
Commercial and business lending | 165,668 | 130,197 | 172,542 | 155,775 | 291,720 | ||||||||||||
Commercial real estate — investor | 91,396 | 29,449 | 67,481 | 19,291 | 51,228 | ||||||||||||
Real estate construction | 19,046 | — | 3,834 | — | 2,465 | ||||||||||||
Commercial real estate lending | 110,442 | 29,449 | 71,315 | 19,291 | 53,693 | ||||||||||||
Total commercial | 276,111 | 159,646 | 243,856 | 175,066 | 345,413 | ||||||||||||
Residential mortgage | 3,749 | 1,451 | 5,975 | 1,616 | 5,615 | ||||||||||||
Home equity | 2,068 | — | 103 | 195 | 114 | ||||||||||||
Total consumer | 5,817 | 1,451 | 6,078 | 1,811 | 5,729 | ||||||||||||
Total potential problem loans | $ | 281,928 | $ | 161,097 | $ | 249,935 | $ | 176,877 | $ | 351,142 |
Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Interest income in accordance with original terms | $ | 11,262 | $ | 12,032 | $ | 10,606 | $ | 16,205 | $ | 16,811 | |||||||
Interest income recognized | (6,891) | (5,015) | (5,500) | (9,339) | (10,228) | ||||||||||||
Reduction in interest income | $ | 4,371 | $ | 7,016 | $ | 5,106 | $ | 6,866 | $ | 6,583 |
Years Ended December 31, | |||||||||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Allowance for loan losses | |||||||||||||||||
Balance at beginning of period | $ | 201,371 | $ | 238,023 | $ | 265,880 | $ | 278,335 | $ | 274,264 | |||||||
Cumulative effect of ASU 2016-13 adoption (CECL) | 112,457 | N/A | N/A | N/A | N/A | ||||||||||||
Balance at beginning of period, adjusted | 313,828 | 238,023 | 265,880 | 278,335 | 274,264 | ||||||||||||
Provision for loan losses | 164,457 | 18,500 | 2,500 | 27,000 | 69,000 | ||||||||||||
Provision for loan losses recorded at acquisition | 2,543 | N/A | N/A | N/A | N/A | ||||||||||||
Gross up of allowance for PCD loans at acquisition | 3,504 | N/A | N/A | N/A | N/A | ||||||||||||
Loans charged off | |||||||||||||||||
Commercial and industrial | (80,320) | (63,315) | (30,837) | (44,533) | (71,016) | ||||||||||||
Commercial real estate — owner occupied | (419) | (222) | (1,363) | (344) | (512) | ||||||||||||
Commercial and business lending | (80,739) | (63,537) | (32,200) | (44,877) | (71,528) | ||||||||||||
Commercial real estate — investor | (22,920) | — | (7,914) | (991) | (1,504) | ||||||||||||
Real estate construction | (19) | (60) | (298) | (604) | (558) | ||||||||||||
Commercial real estate lending | (22,938) | (60) | (8,212) | (1,595) | (2,062) | ||||||||||||
Total commercial | (103,677) | (63,597) | (40,412) | (46,472) | (73,590) | ||||||||||||
Residential mortgage | (1,867) | (3,322) | (1,627) | (2,611) | (4,332) | ||||||||||||
Home equity | (1,719) | (1,846) | (3,236) | (2,724) | (4,686) | ||||||||||||
Other consumer | (4,790) | (5,548) | (5,261) | (4,439) | (3,831) | ||||||||||||
Total consumer | (8,376) | (10,716) | (10,124) | (9,774) | (12,849) | ||||||||||||
Total loans charged off | (112,053) | (74,313) | (50,536) | (56,246) | (86,439) | ||||||||||||
Recoveries of loans previously charged off | |||||||||||||||||
Commercial and industrial | 7,004 | 11,875 | 13,714 | 11,465 | 14,543 | ||||||||||||
Commercial real estate — owner occupied | 147 | 2,795 | 639 | 173 | 74 | ||||||||||||
Commercial and business lending | 7,151 | 14,670 | 14,353 | 11,638 | 14,617 | ||||||||||||
Commercial real estate — investor | 643 | 31 | 668 | 242 | 1,624 | ||||||||||||
Real estate construction | 49 | 302 | 446 | 74 | 203 | ||||||||||||
Commercial real estate lending | 692 | 333 | 1,114 | 316 | 1,827 | ||||||||||||
Total commercial | 7,844 | 15,003 | 15,467 | 11,954 | 16,444 | ||||||||||||
Residential mortgage | 500 | 692 | 1,271 | 927 | 755 | ||||||||||||
Home equity | 1,978 | 2,599 | 2,628 | 3,194 | 3,491 | ||||||||||||
Other consumer | 1,101 | 868 | 812 | 716 | 820 | ||||||||||||
Total consumer | 3,579 | 4,158 | 4,712 | 4,837 | 5,066 | ||||||||||||
Total recoveries | 11,422 | 19,161 | 20,179 | 16,791 | 21,510 | ||||||||||||
Net (charge offs) recoveries | (100,631) | (55,152) | (30,358) | (39,455) | (64,929) | ||||||||||||
Balance at end of period | $ | 383,702 | $ | 201,371 | $ | 238,023 | $ | 265,880 | $ | 278,335 | |||||||
Allowance for unfunded commitments | |||||||||||||||||
Balance at beginning of period | $ | 21,907 | $ | 24,336 | $ | 24,400 | $ | 25,400 | $ | 24,400 | |||||||
Cumulative effect of ASU 2016-13 adoption (CECL) | 18,690 | N/A | N/A | N/A | N/A | ||||||||||||
Balance at beginning of period, adjusted | 40,597 | 24,336 | 24,400 | 25,400 | 24,400 | ||||||||||||
Provision for unfunded commitments | 7,000 | (2,500) | (2,500) | (1,000) | 1,000 | ||||||||||||
Amount recorded at acquisition | 179 | 70 | 2,436 | — | — | ||||||||||||
Balance at end of period | $ | 47,776 | $ | 21,907 | $ | 24,336 | $ | 24,400 | $ | 25,400 | |||||||
Allowance for credit losses on loans
|
$ | 431,478 | $ | 223,278 | $ | 262,359 | $ | 290,280 | $ | 303,735 | |||||||
Provision for credit losses on loans
|
$ | 174,000 | $ | 16,000 | $ | — | $ | 26,000 | $ | 70,000 |
Years Ended December 31, | |||||||||||||||||
(In Basis Points) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Net loan (charge offs) recoveries | |||||||||||||||||
Commercial and industrial | (86) | (68) | (25) | (52) | (87) | ||||||||||||
Commercial real estate — owner occupied | (3) | 28 | (9) | (2) | (5) | ||||||||||||
Commercial and business lending | (78) | (58) | (23) | (46) | (77) | ||||||||||||
Commercial real estate — investor | (54) | — | (18) | (2) | — | ||||||||||||
Real estate construction | — | 2 | 1 | (3) | (3) | ||||||||||||
Commercial real estate lending | (38) | 1 | (13) | (3) | — | ||||||||||||
Total commercial | (63) | (36) | (19) | (28) | (47) | ||||||||||||
Residential mortgage | (2) | (3) | — | (2) | (6) | ||||||||||||
Home equity | 3 | 9 | (6) | 5 | (12) | ||||||||||||
Other consumer | (112) | (132) | (119) | (99) | (74) | ||||||||||||
Total consumer | (5) | (7) | (6) | (6) | (10) | ||||||||||||
Total net (charge offs) recoveries | (41) | (24) | (13) | (19) | (33) |
($ in Thousands) |
December 31,
2019 |
CECL Day 1 Adjustment | ACLL Beginning Balance | Net ACLL Build |
December 31,
2020 |
ACLL / Loans | ||||||||||||||
PPP | $ | — | $ | — | $ | — | $ | 531 | $ | 531 | 0.07 | % | ||||||||
Commercial and industrial | 103,409 | 48,921 | 152,330 | 12,774 | 165,105 | 2.14 | % | |||||||||||||
Commercial real estate - owner occupied | 10,411 | (1,851) | 8,560 | 2,979 | 11,539 | 1.28 | % | |||||||||||||
Commercial and business lending | 113,820 | 47,070 | 160,890 | 16,285 | 177,175 | 1.89 | % | |||||||||||||
Commercial real estate - investor | 41,044 | 2,287 | 43,331 | 50,741 | 94,071 | 2.17 | % | |||||||||||||
Real estate construction | 32,447 | 25,814 | 58,261 | 19,819 | 78,079 | 4.24 | % | |||||||||||||
Commercial real estate lending | 73,490 | 28,101 | 101,591 | 70,560 | 172,151 | 2.78 | % | |||||||||||||
Total commercial | 187,311 | 75,171 | 262,482 | 86,845 | 349,326 | 2.25 | % | |||||||||||||
Residential mortgage | 16,960 | 33,215 | 50,175 | (7,179) | 42,997 | 0.55 | % | |||||||||||||
Home equity | 11,964 | 14,240 | 26,204 | (4,237) | 21,967 | 3.11 | % | |||||||||||||
Other consumer | 7,044 | 8,520 | 15,564 | 1,623 | 17,187 | 5.49 | % | |||||||||||||
Total consumer | 35,968 | 55,975 | 91,943 | (9,792) | 82,151 | 0.92 | % | |||||||||||||
Total allowance for credit losses on loans | $ | 223,278 | $ | 131,147 | $ | 354,425 | $ | 77,053 | $ | 431,478 | 1.76 | % |
At December 31, | ||||||||||||||||||||
($ in Thousands) | 2020 | % of Total | 2019 | % of Total | 2018 | % of Total | ||||||||||||||
Investment securities AFS | ||||||||||||||||||||
Amortized cost | ||||||||||||||||||||
U.S. Treasury securities | $ | 26,436 | 1 | % | $ | — | — | % | $ | 1,000 | — | % | ||||||||
Agency securities | 24,985 | 1 | % | — | — | % | — | — | % | |||||||||||
Obligations of state and political subdivisions (municipal securities) | 425,057 | 14 | % | 529,908 | 16 | % | — | — | % | |||||||||||
Residential mortgage-related securities | ||||||||||||||||||||
FNMA / FHLMC | 1,448,806 | 48 | % | 131,158 | 4 | % | 296,296 | 7 | % | |||||||||||
GNMA | 231,364 | 8 | % | 982,941 | 30 | % | 2,169,943 | 54 | % | |||||||||||
Private-label | — | — | % | — | — | % | 1,007 | — | % | |||||||||||
Commercial mortgage-related securities | ||||||||||||||||||||
FNMA / FHLMC | 19,654 | 1 | % | 19,929 | 1 | % | — | — | % | |||||||||||
GNMA | 511,429 | 17 | % | 1,314,836 | 40 | % | 1,273,309 | 32 | % | |||||||||||
Asset backed securities | ||||||||||||||||||||
FFELP | 329,030 | 11 | % | 270,178 | 8 | % | 297,347 | 7 | % | |||||||||||
SBA | 8,637 | — | % | — | — | % | — | — | % | |||||||||||
Other debt securities | 3,000 | — | % | 3,000 | — | % | 3,000 | — | % | |||||||||||
Total amortized cost | $ | 3,028,399 | 100 | % | $ | 3,251,950 | 100 | % | $ | 4,041,902 | 100 | % | ||||||||
Fair value | ||||||||||||||||||||
U.S. Treasury securities | $ | 26,531 | 1 | % | $ | — | — | % | $ | 999 | — | % | ||||||||
Agency securities | 25,038 | 1 | % | — | — | % | — | — | % | |||||||||||
Obligations of state and political subdivisions (municipal securities) | 450,662 | 15 | % | 546,160 | 17 | % | — | — | % | |||||||||||
Residential mortgage-related securities | ||||||||||||||||||||
FNMA / FHLMC | 1,461,241 | 47 | % | 132,660 | 4 | % | 295,252 | 7 | % | |||||||||||
GNMA | 235,537 | 8 | % | 985,139 | 30 | % | 2,128,531 | 54 | % | |||||||||||
Private-label | — | — | % | — | — | % | 1,003 | — | % | |||||||||||
Commercial mortgage-related securities | ||||||||||||||||||||
FNMA / FHLMC | 22,904 | 1 | % | 21,728 | 1 | % | — | — | % | |||||||||||
GNMA | 524,756 | 17 | % | 1,310,207 | 40 | % | 1,220,797 | 31 | % | |||||||||||
Asset backed securities | ||||||||||||||||||||
FFELP | 327,189 | 11 | % | 263,693 | 8 | % | 297,360 | 8 | % | |||||||||||
SBA | 8,584 | — | % | — | — | % | — | — | % | |||||||||||
Other debt securities | 3,000 | — | % | 3,000 | — | % | 3,000 | — | % | |||||||||||
Total fair value and carrying value | $ | 3,085,441 | 100 | % | $ | 3,262,586 | 100 | % | $ | 3,946,941 | 100 | % | ||||||||
Net unrealized holding gains (losses) | $ | 57,043 | $ | 10,636 | $ | (94,961) | ||||||||||||||
At December 31, | ||||||||||||||||||||
($ in Thousands) | 2020 | % of Total | 2019 | % of Total | 2018 | % of Total | ||||||||||||||
Investment securities HTM | ||||||||||||||||||||
Amortized cost | ||||||||||||||||||||
U.S. Treasury securities | $ | 999 | — | % | $ | 999 | — | % | $ | — | — | % | ||||||||
Obligations of state and political subdivisions (municipal securities) | 1,441,900 | 77 | % | 1,418,569 | 64 | % | 1,790,683 | 65 | % | |||||||||||
Residential mortgage-related securities | ||||||||||||||||||||
FNMA / FHLMC | 54,599 | 3 | % | 81,676 | 4 | % | 92,788 | 3 | % | |||||||||||
GNMA | 114,553 | 6 | % | 269,523 | 12 | % | 351,606 | 13 | % | |||||||||||
Commercial mortgage-related securities | ||||||||||||||||||||
FNMA/FHLMC | 11,211 | 1 | % | — | — | % | — | — | % | |||||||||||
GNMA | 255,742 | 14 | % | 434,317 | 20 | % | 505,434 | 18 | % | |||||||||||
Total amortized cost and carrying value | $ | 1,879,005 | 100 | % | $ | 2,205,083 | 100 | % | $ | 2,740,511 | 100 | % | ||||||||
Fair value | ||||||||||||||||||||
U.S. Treasury securities | $ | 1,024 | — | % | $ | 1,018 | — | % | $ | — | — | % | ||||||||
Obligations of state and political subdivisions (municipal securities) | 1,575,445 | 78 | % | 1,487,227 | 65 | % | 1,783,659 | 66 | % | |||||||||||
Residential mortgage-related securities | ||||||||||||||||||||
FNMA / FHLMC | 57,490 | 3 | % | 83,420 | 4 | % | 91,162 | 3 | % | |||||||||||
GNMA | 118,813 | 6 | % | 270,296 | 12 | % | 345,035 | 13 | % | |||||||||||
Commercial mortgage-related securities | ||||||||||||||||||||
FNMA/FHLMC | 11,211 | 1 | % | — | — | % | — | — | % | |||||||||||
GNMA | 264,960 | 13 | % | 434,503 | 19 | % | 490,414 | 18 | % | |||||||||||
Total fair value | $ | 2,028,943 | 100 | % | $ | 2,276,465 | 100 | % | $ | 2,710,271 | 100 | % | ||||||||
Net unrealized holding gains (losses) | $ | 149,938 | $ | 71,381 | $ | (30,240) | ||||||||||||||
Equity securities | ||||||||||||||||||||
Equity securities carrying value and fair value | $ | 15,106 | 100 | % | $ | 15,090 | 100 | % | $ | 1,568 | 100 | % |
December 31, 2020 | |||||||||||
($ in Thousands) | Amortized Cost | Fair Value |
Yield(b)
|
||||||||
AFS securities | |||||||||||
U. S. Treasury securities | |||||||||||
After one but within five years | $ | 26,436 | $ | 26,531 | 0.31 | % | |||||
Total U. S. Treasury securities | $ | 26,436 | $ | 26,531 | 0.31 | % | |||||
Agency securities | |||||||||||
After one but within five years | $ | 24,985 | $ | 25,038 | 0.45 | % | |||||
Total federal agency securities | $ | 24,985 | $ | 25,038 | 0.45 | % | |||||
Obligations of state and political subdivisions (municipal securities) | |||||||||||
Within one year | $ | 6,385 | $ | 6,394 | 3.62 | % | |||||
After one but within five years | 29,873 | 30,543 | 3.31 | % | |||||||
After five years but within ten years | 350,687 | 371,076 | 3.27 | % | |||||||
After ten years | 38,113 | 42,650 | 4.27 | % | |||||||
Total obligations of state and political subdivisions (municipal securities) | $ | 425,057 | $ | 450,662 | 3.37 | % | |||||
Agency residential mortgage-related securities | |||||||||||
Within one year | $ | 108,924 | $ | 109,509 | 2.15 | % | |||||
After one but within five years | 1,348,883 | 1,362,462 | 1.27 | % | |||||||
After five years but within ten years | 222,363 | 224,807 | 1.37 | % | |||||||
Total agency residential mortgage-related securities | $ | 1,680,170 | $ | 1,696,778 | 1.34 | % | |||||
Agency commercial mortgage-related securities | |||||||||||
Within one year | $ | 88,783 | $ | 89,624 | 2.26 | % | |||||
After one but within five years | 422,647 | 435,132 | 2.50 | % | |||||||
After five years but within ten years | 19,654 | 22,904 | 4.06 | % | |||||||
Total agency commercial mortgage-related securities | $ | 531,083 | $ | 547,659 | 2.52 | % | |||||
Asset backed securities | |||||||||||
Within one year | $ | 205 | $ | 205 | — | % | |||||
After one but within five years | 109,409 | 107,239 | 0.96 | % | |||||||
After five years but within ten years | 196,581 | 196,611 | 0.99 | % | |||||||
After ten years | 31,473 | 31,719 | 1.11 | % | |||||||
Total asset backed securities | $ | 337,667 | $ | 335,773 | 0.99 | % | |||||
Other debt securities | |||||||||||
Within one year | $ | 1,000 | $ | 1,000 | 3.53 | % | |||||
After one but within five years | 2,000 | 2,000 | 2.23 | % | |||||||
Total other debt securities | $ | 3,000 | $ | 3,000 | 2.66 | % | |||||
Total AFS securities | $ | 3,028,399 | $ | 3,085,441 | 1.78 | % | |||||
December 31, 2020 | |||||||||||
($ in Thousands) | Amortized Cost | Fair Value |
Yield(b)
|
||||||||
HTM securities | |||||||||||
U. S. Treasury securities | |||||||||||
After one but within five years | $ | 999 | $ | 1,024 | 2.56 | % | |||||
Total U. S. Treasury securities | $ | 999 | $ | 1,024 | 2.56 | % | |||||
Obligations of state and political subdivisions (municipal securities) | |||||||||||
Within one year | $ | 29,665 | $ | 29,938 | 3.35 | % | |||||
After one but within five years | 53,314 | 55,172 | 3.34 | % | |||||||
After five years but within ten years | 187,853 | 197,850 | 3.81 | % | |||||||
After ten years | 1,171,068 | 1,292,485 | 3.97 | % | |||||||
Total obligations of state and political subdivisions (municipal securities) | $ | 1,441,900 | $ | 1,575,445 | 3.91 | % | |||||
Agency residential mortgage-related securities | |||||||||||
Within one year | $ | 26,533 | $ | 26,845 | 2.04 | % | |||||
After one but within five years | 122,720 | 128,427 | 2.58 | % | |||||||
After five years but within ten years | 6,794 | 7,219 | 3.38 | % | |||||||
After ten years | 13,105 | 13,812 | 3.17 | % | |||||||
Total agency residential mortgage-related securities | $ | 169,152 | $ | 176,303 | 2.58 | % | |||||
Agency commercial mortgage-related securities | |||||||||||
Within one year | $ | 56,520 | $ | 56,973 | 1.97 | % | |||||
After one but within five years | 184,569 | 192,865 | 2.21 | % | |||||||
After five years but within ten years | 14,658 | 15,127 | 2.00 | % | |||||||
After ten years | 11,206 | 11,206 | 2.03 | % | |||||||
Total GNMA commercial mortgage-related securities | $ | 266,953 | $ | 276,171 | 2.14 | % | |||||
Total HTM securities | $ | 1,879,005 | $ | 2,028,943 | 3.54 | % | |||||
Equity securities | |||||||||||
Equity securities with readily determinable fair values | $ | 1,661 | $ | 1,661 | — | % | |||||
Equity securities without readily determinable fair values | 13,444 | 13,444 | — | % | |||||||
Total equity securities | $ | 15,106 | $ | 15,106 | — | % |
As of December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Noninterest-bearing demand | $ | 7,661,728 | $ | 5,450,709 | $ | 5,698,530 | |||||
Savings | 3,650,085 | 2,735,036 | 2,012,841 | ||||||||
Interest-bearing demand | 6,090,869 | 5,329,717 | 5,336,952 | ||||||||
Money market | 7,322,769 | 7,640,798 | 9,033,669 | ||||||||
Brokered CDs | — | 5,964 | 192,234 | ||||||||
Other time | 1,757,030 | 2,616,839 | 2,623,167 | ||||||||
Total deposits | 26,482,481 | 23,779,064 | 24,897,393 | ||||||||
Customer funding(a)
|
245,247 | 103,113 | 137,364 | ||||||||
Total deposits and customer funding | $ | 26,727,727 | $ | 23,882,177 | $ | 25,034,757 | |||||
Network transaction deposits(b)
|
$ | 1,197,093 | $ | 1,336,286 | $ | 2,276,296 | |||||
Brokered CDs | — | 5,964 | 192,234 | ||||||||
Total network and brokered funding | 1,197,093 | 1,342,250 | 2,468,530 | ||||||||
Net deposits and customer funding (total deposits and customer funding, excluding Brokered CDs and network transaction deposits) | $ | 25,530,634 | $ | 22,539,927 | $ | 22,566,227 |
As of December 31, 2020 | |||||||||||
($ in Thousands) |
Certificates
of Deposit |
Other
Time Deposits |
Total Certificates
of Deposits and Other Time Deposits |
||||||||
Three months or less | $ | 195,854 | $ | 124,732 | $ | 320,586 | |||||
Over three months through six months | 96,873 | 31,446 | 128,318 | ||||||||
Over six months through twelve months | 101,331 | 23,492 | 124,823 | ||||||||
Over twelve months | 107,875 | 260 | 108,134 | ||||||||
Total | $ | 501,932 | $ | 179,929 | $ | 681,861 |
Moody’s |
S&P
|
|||||||
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 | Negative | Stable |
December 31, 2020 | December 31, 2019 | |||||||
Instantaneous Rate Change | ||||||||
100 bp increase in interest rates | 1.9 | % | (0.5) | % | ||||
200 bp increase in interest rates | 2.8 | % | (2.2) | % |
($ in Thousands) |
Note
Reference |
One Year
or Less |
One to
Three Years |
Three to
Five Years |
Over
Five Years |
Total | ||||||||||||||
Time deposits | 8 | $ | 1,371,671 | $ | 314,212 | $ | 71,136 | $ | 11 | $ | 1,757,030 | |||||||||
Short-term funding | 9 | 252,317 | — | — | — | 252,317 | ||||||||||||||
FHLB advances | 9 | 17,723 | 9,781 | 1,000,848 | 604,371 | 1,632,723 | ||||||||||||||
Other long-term funding | 9 | 299,631 | 967 | 248,867 | — | 549,465 | ||||||||||||||
Operating leases | 7 | 7,630 | 10,757 | 7,888 | 10,150 | 36,425 | ||||||||||||||
Commitments to extend credit | 14 & 16 | 5,294,361 | 3,666,397 | 1,198,832 | 186,403 | 10,345,992 | ||||||||||||||
Total | $ | 7,243,333 | $ | 4,002,113 | $ | 2,527,571 | $ | 800,934 | $ | 14,573,952 |
As of December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Risk-based Capital(a)
|
|||||||||||
CET1 | $ | 2,706,010 | $ | 2,480,698 | $ | 2,449,721 | |||||
Tier 1 capital | 3,058,809 | 2,736,776 | 2,705,939 | ||||||||
Total capital | 3,632,807 | 3,208,625 | 3,216,575 | ||||||||
Total risk-weighted assets | 25,903,415 | 24,296,382 | 23,842,542 | ||||||||
CET1 capital ratio | 10.45 | % | 10.21 | % | 10.27 | % | |||||
Tier 1 capital ratio | 11.81 | % | 11.26 | % | 11.35 | % | |||||
Total capital ratio | 14.02 | % | 13.21 | % | 13.49 | % | |||||
Tier 1 leverage ratio | 9.37 | % | 8.83 | % | 8.49 | % | |||||
Selected Equity and Performance Ratios | |||||||||||
Total stockholders’ equity / total assets | 12.24 | % | 12.11 | % | 11.25 | % | |||||
Dividend payout ratio(b)
|
38.50 | % | 35.75 | % | 32.29 | % | |||||
Return on average assets | 0.90 | % | 0.99 | % | 1.01 | % | |||||
Noninterest expense / average assets | 2.26 | % | 2.40 | % | 2.49 | % |
At or for the Year Ended December 31, | |||||||||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Selected equity and performance ratios(a)(b)
|
|||||||||||||||||
Tangible common equity / tangible assets | 7.94 | % | 7.71 | % | 7.04 | % | 7.08 | % | 6.91 | % | |||||||
Return on average equity | 7.78 | % | 8.44 | % | 9.03 | % | 7.23 | % | 6.63 | % | |||||||
Return on average tangible common equity | 11.99 | % | 13.21 | % | 14.06 | % | 10.86 | % | 10.07 | % | |||||||
Return on average common equity Tier 1 | 11.23 | % | 12.59 | % | 13.15 | % | 10.43 | % | 9.86 | % | |||||||
Return on average tangible assets | 0.93 | % | 1.03 | % | 1.05 | % | 0.81 | % | 0.73 | % | |||||||
Average stockholders' equity / average assets | 11.51 | % | 11.72 | % | 11.19 | % | 10.77 | % | 10.60 | % | |||||||
Tangible common equity reconciliation(a)
|
|||||||||||||||||
Common equity | $ | 3,737,421 | $ | 3,665,407 | $ | 3,524,171 | $ | 3,077,514 | $ | 2,931,383 | |||||||
Goodwill and other intangible assets, net | (1,177,554) | (1,264,531) | (1,244,859) | (991,819) | (987,328) | ||||||||||||
Tangible common equity | $ | 2,559,867 | $ | 2,400,876 | $ | 2,279,312 | $ | 2,085,695 | $ | 1,944,055 | |||||||
Tangible assets reconciliation(a)
|
|||||||||||||||||
Total assets | $ | 33,419,783 | $ | 32,386,478 | $ | 33,615,122 | $ | 30,443,626 | $ | 29,139,315 | |||||||
Goodwill and other intangible assets, net | (1,177,554) | (1,264,531) | (1,244,859) | (991,819) | (987,328) | ||||||||||||
Tangible assets | $ | 32,242,230 | $ | 31,121,947 | $ | 32,370,263 | $ | 29,451,807 | $ | 28,151,987 | |||||||
Average tangible common equity and average common equity tier 1 reconciliation(a)
|
|||||||||||||||||
Common equity | $ | 3,633,259 | $ | 3,615,153 | $ | 3,505,075 | $ | 3,012,704 | $ | 2,888,579 | |||||||
Goodwill and other intangible assets, net | (1,227,561) | (1,256,668) | (1,209,311) | (988,073) | (988,406) | ||||||||||||
Tangible common equity | 2,405,698 | 2,358,485 | 2,295,764 | 2,024,631 | 1,900,173 | ||||||||||||
Modified CECL transitional amount | 115,052 | N/A | N/A | N/A | N/A | ||||||||||||
Accumulated other comprehensive loss (income) | 2,643 | 68,946 | 117,408 | 53,879 | 7,526 | ||||||||||||
Deferred tax assets (liabilities), net | 43,789 | 46,980 | 41,747 | 30,949 | 32,692 | ||||||||||||
Average common equity Tier 1 | $ | 2,567,182 | $ | 2,474,411 | $ | 2,454,919 | $ | 2,109,459 | $ | 1,940,391 | |||||||
Average tangible assets reconciliation(a)
|
|||||||||||||||||
Total assets | $ | 34,265,207 | $ | 33,046,604 | $ | 33,007,859 | $ | 29,467,324 | $ | 28,506,112 | |||||||
Goodwill and other intangible assets, net | (1,227,561) | (1,256,668) | (1,209,311) | (988,073) | (988,406) | ||||||||||||
Tangible assets | $ | 33,037,646 | $ | 31,789,936 | $ | 31,798,548 | $ | 28,479,252 | $ | 27,517,705 | |||||||
Efficiency ratio reconciliation(c)
|
|||||||||||||||||
Federal Reserve efficiency ratio | 61.76 | % | 65.38 | % | 66.23 | % | 65.97 | % | 66.95 | % | |||||||
Fully tax-equivalent adjustment | (0.77) | % | (0.85) | % | (0.71) | % | (1.28) | % | (1.29) | % | |||||||
Other intangible amortization | (0.80) | % | (0.82) | % | (0.66) | % | (0.18) | % | (0.20) | % | |||||||
Fully tax-equivalent efficiency ratio | 60.20 | % | 63.72 | % | 64.87 | % | 64.51 | % | 65.46 | % | |||||||
Acquisition related costs adjustment(d)
|
(0.19) | % | (0.60) | % | (2.42) | % | — | % | — | % | |||||||
Provision for unfunded commitments adjustment | (0.55) | % | 0.20 | % | 0.20 | % | 0.09 | % | (0.09) | % | |||||||
Asset gains (losses), net adjustment | 8.20 | % | 0.14 | % | — | % | (0.07) | % | (0.01) | % | |||||||
Branch sales | 0.41 | % | — | % | — | % | — | % | — | % | |||||||
3Q 2020 initiatives(e)
|
(5.32) | % | — | % | — | % | — | % | — | % | |||||||
Adjusted efficiency ratio | 62.76 | % | 63.47 | % | 62.65 | % | 64.53 | % | 65.36 | % |
Year Ended December 31, | Change From Prior Year | ||||||||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | % Change 2020 | % Change 2019 | ||||||||||||
Corporate and Commercial Specialty | |||||||||||||||||
Total revenue | $ | 554,991 | $ | 531,876 | $ | 556,793 | 4 | % | (4) | % | |||||||
Provision for credit losses | 59,780 | 49,341 | 42,234 | 21 | % | 17 | % | ||||||||||
Noninterest expense | 209,507 | 233,655 | 233,202 | (10) | % | — | % | ||||||||||
Income tax expense (benefit) | 53,193 | 47,480 | 54,732 | 12 | % | (13) | % | ||||||||||
Net income | 232,512 | 201,399 | 226,625 | 15 | % | (11) | % | ||||||||||
Average earning assets | 14,183,538 | 12,774,052 | 12,257,249 | 11 | % | 4 | % | ||||||||||
Average loans | 14,244,938 | 12,829,331 | 12,305,983 | 11 | % | 4 | % | ||||||||||
Average deposits | 9,423,485 | 9,710,281 | 9,531,124 | (3) | % | 2 | % | ||||||||||
Average allocated capital (Average CET1)(a)
|
1,428,291 | 1,283,231 | 1,242,486 | 11 | % | 3 | % | ||||||||||
Return on average allocated capital (ROCET1)(a)
|
16.28 | % | 15.69 | % | 18.24 | % | 59 bp | N/M | |||||||||
Community, Consumer, and Business | |||||||||||||||||
Total revenue | $ | 535,237 | $ | 618,606 | $ | 611,607 | (13) | % | 1 | % | |||||||
Provision for credit losses | 21,862 | 18,594 | 18,500 | 18 | % | 1 | % | ||||||||||
Noninterest expense | 429,447 | 467,086 | 463,187 | (8) | % | 1 | % | ||||||||||
Income tax expense (benefit) | 17,625 | 27,914 | 27,283 | (37) | % | 2 | % | ||||||||||
Net income | 66,303 | 105,011 | 102,637 | (37) | % | 2 | % | ||||||||||
Average earning assets | 9,460,929 | 9,226,380 | 9,285,604 | 3 | % | (1) | % | ||||||||||
Average loans | 9,395,680 | 9,162,911 | 9,222,584 | 3 | % | (1) | % | ||||||||||
Average deposits | 15,026,889 | 12,957,467 | 12,197,989 | 16 | % | 6 | % | ||||||||||
Average allocated capital (Average CET1)(a)
|
533,954 | 541,992 | 553,568 | (1) | % | (2) | % | ||||||||||
Return on average allocated capital (ROCET1)(a)
|
12.42 | % | 19.38 | % | 18.54 | % | N/M | 84 bp | |||||||||
Risk Management and Shared Services | |||||||||||||||||
Total revenue(b)
|
$ | 186,784 | $ | 66,017 | $ | 66,748 | 183 | % | (1) | % | |||||||
Provision for credit losses | 92,365 | (51,935) | (60,734) | N/M | (14) | % | |||||||||||
Noninterest expense (c)
|
137,080 | 93,247 | 125,410 | 47 | % | (26) | % | ||||||||||
Income tax expense (benefit)(d)
|
(50,618) | 4,325 | (2,228) | N/M | N/M | ||||||||||||
Net income | 7,957 | 20,379 | 4,301 | (61) | % | N/M | |||||||||||
Average earning assets | 7,187,540 | 7,820,397 | 8,506,941 | (8) | % | (8) | % | ||||||||||
Average loans | 897,030 | 1,130,555 | 1,189,730 | (21) | % | (5) | % | ||||||||||
Average deposits | 1,557,311 | 2,067,860 | 2,342,936 | (25) | % | (12) | % | ||||||||||
Average allocated capital (Average CET1)(a)
|
604,937 | 649,188 | 658,864 | (7) | % | (1) | % | ||||||||||
Return on average allocated capital (ROCET1)(a)
|
1.32 | % | 0.80 | % | (0.98) | % | 52bp | N/M | |||||||||
Consolidated Total | |||||||||||||||||
Total revenue | $ | 1,277,012 | $ | 1,216,498 | $ | 1,235,148 | 5 | % | (2) | % | |||||||
Return on average allocated capital (ROCET1)(a)
|
11.23 | % | 12.59 | % | 13.15 | % | -136 bp | -56 bp |
2020 Quarters Ended | ||||||||||||||
(In Thousands, except per common share data) | December 31 | September 30 | June 30 | March 31 | ||||||||||
Net interest income | $ | 187,993 | $ | 182,150 | $ | 189,872 | $ | 202,942 | ||||||
Provision for credit losses | 16,997 | 43,009 | 61,000 | 53,001 | ||||||||||
Income (loss) before income taxes | 83,860 | (12,900) | 199,955 | 56,056 | ||||||||||
Net income available to common equity | 61,795 | 40,007 | 144,573 | 42,037 | ||||||||||
Basic earnings per common share | $ | 0.40 | $ | 0.26 | $ | 0.94 | $ | 0.27 | ||||||
Diluted earnings per common share | $ | 0.40 | $ | 0.26 | $ | 0.94 | $ | 0.27 | ||||||
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 |
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) | 2020 | 2019 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 416,154 | $ | 373,380 | ||||
Interest-bearing deposits in other financial institutions | 298,759 | 207,624 | ||||||
Federal funds sold and securities purchased under agreements to resell | 1,135 | 7,740 | ||||||
Investment securities AFS, at fair value | 3,085,441 | 3,262,586 | ||||||
Investment securities HTM, net, at amortized cost(a)
|
1,878,938 | 2,205,083 | ||||||
Equity securities | 15,106 | 15,090 | ||||||
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | 168,280 | 227,347 | ||||||
Residential loans held for sale | 129,158 | 136,280 | ||||||
Commercial loans held for sale | — | 15,000 | ||||||
Loans | 24,451,724 | 22,821,440 | ||||||
Allowance for loan losses(a)
|
(383,702) | (201,371) | ||||||
Loans, net | 24,068,022 | 22,620,068 | ||||||
Tax credit and other investments | 297,232 | 279,969 | ||||||
Premises and equipment, net | 418,914 | 435,284 | ||||||
Bank and corporate owned life insurance | 679,647 | 671,948 | ||||||
Goodwill | 1,109,300 | 1,176,230 | ||||||
Other intangible assets, net | 68,254 | 88,301 | ||||||
Mortgage servicing rights, net | 41,961 | 67,306 | ||||||
Interest receivable | 90,263 | 91,196 | ||||||
Other assets | 653,219 | 506,046 | ||||||
Total assets | $ | 33,419,783 | $ | 32,386,478 | ||||
Liabilities and Stockholders' Equity | ||||||||
Noninterest-bearing demand deposits | $ | 7,661,728 | $ | 5,450,709 | ||||
Interest-bearing deposits | 18,820,753 | 18,328,355 | ||||||
Total deposits | 26,482,481 | 23,779,064 | ||||||
Federal funds purchased and securities sold under agreements to repurchase | 192,971 | 433,097 | ||||||
Commercial paper | 59,346 | 32,016 | ||||||
FHLB advances | 1,632,723 | 3,180,967 | ||||||
Other long-term funding | 549,465 | 549,343 | ||||||
Allowance for unfunded commitments(a)
|
47,776 | 21,907 | ||||||
Accrued expenses and other liabilities | 364,088 | 467,961 | ||||||
Total liabilities | 29,328,850 | 28,464,355 | ||||||
Stockholders’ Equity
|
||||||||
Preferred equity | 353,512 | 256,716 | ||||||
Common equity | ||||||||
Common stock | 1,752 | 1,752 | ||||||
Surplus | 1,720,329 | 1,716,431 | ||||||
Retained earnings(a)
|
2,458,920 | 2,380,867 | ||||||
Accumulated other comprehensive income (loss) | 12,618 | (33,183) | ||||||
Treasury stock, at cost | (456,198) | (400,460) | ||||||
Total common equity | 3,737,421 | 3,665,407 | ||||||
Total stockholders’ equity | 4,090,933 | 3,922,124 | ||||||
Total liabilities and stockholders’ equity | $ | 33,419,783 | $ | 32,386,478 | ||||
Preferred shares authorized (par value $1.00 per share) | 750,000 | 750,000 | ||||||
Preferred shares issued and outstanding | 364,458 | 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 | 153,540,224 | 157,171,247 |
For the Years Ended December 31, | |||||||||||
(In Thousands, except per share data) | 2020 | 2019 | 2018 | ||||||||
Interest income | |||||||||||
Interest and fees on loans | $ | 785,241 | $ | 998,099 | $ | 976,990 | |||||
Interest and dividends on investment securities | |||||||||||
Taxable | 59,806 | 100,304 | 119,741 | ||||||||
Tax-exempt | 58,320 | 57,565 | 44,782 | ||||||||
Other interest | 9,473 | 16,643 | 12,623 | ||||||||
Total interest income | 912,840 | 1,172,610 | 1,154,137 | ||||||||
Interest expense | |||||||||||
Interest on deposits | 67,639 | 237,286 | 176,118 | ||||||||
Interest on federal funds purchased and securities sold under agreements to repurchase | 485 | 1,579 | 2,006 | ||||||||
Interest on other short-term funding | 51 | 138 | 180 | ||||||||
Interest on PPPLF | 1,984 | — | — | ||||||||
Interest on FHLB advances | 57,359 | 69,816 | 73,668 | ||||||||
Interest on long-term funding | 22,365 | 28,116 | 22,585 | ||||||||
Total interest expense | 149,883 | 336,936 | 274,557 | ||||||||
Net interest income | 762,957 | 835,674 | 879,580 | ||||||||
Provision for credit losses | 174,006 | 16,000 | — | ||||||||
Net interest income after provision for credit losses | 588,950 | 819,674 | 879,580 | ||||||||
Noninterest income | |||||||||||
Wealth management fees(a)
|
84,957 | 83,467 | 82,562 | ||||||||
Service charges and deposit account fees | 56,307 | 63,135 | 66,075 | ||||||||
Card-based fees | 38,534 | 39,755 | 39,656 | ||||||||
Other fee-based revenue | 19,238 | 18,942 | 17,818 | ||||||||
Capital markets, net | 27,966 | 19,862 | 20,120 | ||||||||
Mortgage banking, net | 45,580 | 31,878 | 19,911 | ||||||||
Bank and corporate owned life insurance | 13,771 | 14,845 | 13,951 | ||||||||
Insurance commissions and fees | 45,245 | 89,104 | 89,511 | ||||||||
Asset gains (losses), net(b)
|
155,589 | 2,713 | (1,103) | ||||||||
Investment securities gains (losses), net | 9,222 | 5,957 | (1,985) | ||||||||
Gains on sale of branches, net | 7,449 | — | — | ||||||||
Other | 10,200 | 11,165 | 9,051 | ||||||||
Total noninterest income | 514,056 | 380,824 | 355,568 | ||||||||
Noninterest expense | |||||||||||
Personnel | 432,151 | 487,063 | 482,676 | ||||||||
Technology | 81,214 | 82,429 | 72,674 | ||||||||
Occupancy | 64,064 | 62,399 | 59,121 | ||||||||
Business development and advertising | 18,428 | 29,600 | 30,923 | ||||||||
Equipment | 21,705 | 23,550 | 23,243 | ||||||||
Legal and professional | 21,546 | 19,901 | 23,061 | ||||||||
Loan and foreclosure costs | 12,600 | 8,861 | 7,410 | ||||||||
FDIC assessment | 20,350 | 16,250 | 30,000 | ||||||||
Other intangible amortization | 10,192 | 9,948 | 8,159 | ||||||||
Acquisition related costs(c)
|
2,447 | 7,320 | 29,002 | ||||||||
Loss on prepayments of FHLB advances | 44,650 | — | — | ||||||||
Other | 46,688 | 46,666 | 55,530 | ||||||||
Total noninterest expense | 776,034 | 793,988 | 821,799 | ||||||||
Income before income taxes | 326,972 | 406,509 | 413,349 | ||||||||
Income tax expense | 20,200 | 79,720 | 79,786 | ||||||||
Net income | 306,771 | 326,790 | 333,562 | ||||||||
Preferred stock dividends | 18,358 | 15,202 | 10,784 | ||||||||
Net income available to common equity | $ | 288,413 | $ | 311,587 | $ | 322,779 | |||||
Earnings per common share | |||||||||||
Basic | $ | 1.87 | $ | 1.93 | $ | 1.92 | |||||
Diluted | $ | 1.86 | $ | 1.91 | $ | 1.89 | |||||
Average common shares outstanding | |||||||||||
Basic | 153,005 | 160,534 | 167,345 | ||||||||
Diluted | 153,642 | 161,932 | 169,732 |
For the Years Ended December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Net income | $ | 306,771 | $ | 326,790 | $ | 333,562 | |||||
Other comprehensive income (loss), net of tax | |||||||||||
Investment securities AFS | |||||||||||
Net unrealized gains (losses) | 55,628 | 111,592 | (39,891) | ||||||||
Amortization of net unrealized (gains) losses on AFS securities transferred to HTM securities | 3,359 | 895 | (572) | ||||||||
Reclassification adjustment for net losses (gains) realized in net income
|
(9,222) | (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 | (12,429) | (26,898) | 9,791 | ||||||||
Other comprehensive income (loss) on investment securities AFS | 37,336 | 79,631 | (37,189) | ||||||||
Defined benefit pension and postretirement obligations | |||||||||||
Amortization of prior service cost | (148) | (148) | (148) | ||||||||
Net actuarial (loss) gain | 7,780 | 16,296 | (28,612) | ||||||||
Amortization of actuarial loss (gain) | 3,897 | 476 | 2,203 | ||||||||
Reclassification of certain tax effects from OCI | — | — | (5,235) | ||||||||
Income tax (expense) benefit | (3,064) | (4,465) | 6,767 | ||||||||
Other comprehensive income (loss) on pension and postretirement obligations | 8,465 | 12,158 | (25,025) | ||||||||
Total other comprehensive income (loss) | 45,801 | 91,789 | (62,214) | ||||||||
Comprehensive income | $ | 352,572 | $ | 418,579 | $ | 271,348 |
(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, 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 (loss) | — | — | — | — | — | — | (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, open market purchases | — | — | — | — | — | — | — | (206,450) | (206,450) | ||||||||||||||||||||
Purchase of treasury stock, stock-based compensation plans | — | — | — | — | — | — | — | (7,148) | (7,148) | ||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||
Common stock, $0.62 per share | — | — | — | — | — | (105,519) | — | — | (105,519) | ||||||||||||||||||||
Preferred stock(a)
|
— | — | — | — | — | (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, open market purchases | — | — | — | — | — | — | — | (177,484) | (177,484) | ||||||||||||||||||||
Purchase of treasury stock, stock-based compensation plans | — | — | — | — | — | — | — | (8,592) | (8,592) | ||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||
Common stock, $0.69 per share | — | — | — | — | — | (111,804) | — | — | (111,804) | ||||||||||||||||||||
Preferred stock(b)
|
— | — | — | — | — | (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 | ||||||||||||||||||||
Cumulative effect of ASU 2016-13 adoption (CECL) | — | — | — | — | — | (98,337) | — | — | (98,337) | ||||||||||||||||||||
Total shareholder's equity at beginning of period, as adjusted | 264 | 256,716 | 175,216 | 1,752 | 1,716,431 | 2,282,530 | (33,183) | (400,460) | 3,823,787 | ||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 306,771 | — | — | $ | 306,771 | |||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 45,801 | — | 45,801 | ||||||||||||||||||||
Comprehensive income | $ | 352,572 | |||||||||||||||||||||||||||
Issuance of preferred stock | 100 | 96,796 | — | — | — | — | — | — | 96,796 | ||||||||||||||||||||
Common stock issued: | |||||||||||||||||||||||||||||
Stock-based compensation plans, net
|
— | — | — | — | (17,663) | — | — | 21,629 | 3,966 | ||||||||||||||||||||
Purchase of treasury stock, open market purchases | — | — | — | — | — | — | — | (71,255) | (71,255) | ||||||||||||||||||||
Purchase of treasury stock, stock-based compensation plans | — | — | — | — | — | — | — | (6,113) | (6,113) | ||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||
Common stock, $0.72 per share | — | — | — | — | — | (112,023) | — | — | (112,023) | ||||||||||||||||||||
Preferred stock(c)
|
— | — | — | — | — | (18,358) | — | — | (18,358) | ||||||||||||||||||||
Stock-based compensation expense, net | — | — | — | — | 21,561 | — | — | — | 21,561 | ||||||||||||||||||||
Balance, December 31, 2020 | 364 | $ | 353,512 | 175,216 | $ | 1,752 | $ | 1,720,329 | $ | 2,458,920 | $ | 12,618 | $ | (456,198) | $ | 4,090,933 |
For the Years Ended December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | $ | 306,771 | $ | 326,790 | $ | 333,562 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Provision for credit losses | 174,006 | 16,000 | — | ||||||||
Depreciation and amortization | 50,567 | 58,149 | 48,253 | ||||||||
Addition to (recovery of) valuation allowance on mortgage servicing rights, net | 17,704 | 63 | (545) | ||||||||
Amortization of mortgage servicing rights | 22,664 | 12,432 | 9,594 | ||||||||
Amortization of other intangible assets | 10,192 | 9,948 | 8,159 | ||||||||
Amortization and accretion on earning assets, funding, and other, net | 25,028 | 23,573 | 11,624 | ||||||||
Net amortization of tax credit investments | 25,556 | 20,062 | 19,425 | ||||||||
Losses (gains) on sales of investment securities, net | (9,222) | (5,957) | 1,985 | ||||||||
Asset (gains) losses, net | (155,589) | (2,713) | 1,103 | ||||||||
(Gains) on sale of branches, net | (7,449) | — | — | ||||||||
(Gain) loss on mortgage banking activities, net | (59,379) | (20,120) | (22,497) | ||||||||
Mortgage loans originated for sale | (1,642,135) | (1,090,792) | (1,092,318) | ||||||||
Proceeds from sales of mortgage loans held for sale | 1,959,571 | 1,317,077 | 1,131,652 | ||||||||
Pension contributions | — | — | (41,877) | ||||||||
Changes in certain assets and liabilities | |||||||||||
(Increase) decrease in interest receivable | 933 | 7,595 | (7,417) | ||||||||
Increase (decrease) in interest payable | (11,385) | 2,495 | 10,407 | ||||||||
Increase (decrease) in accrued expenses | (29,057) | 723 | 30,924 | ||||||||
Increase (decrease) in derivative position | (113,760) | (102,966) | 40,950 | ||||||||
Increase (decrease) in net income tax position | (47,268) | 43,908 | 18,178 | ||||||||
Net change in other assets and other liabilities | 32,270 | (42,005) | (4,594) | ||||||||
Net cash provided by operating activities | 550,020 | 574,260 | 496,567 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Net increase in loans | (1,640,524) | (137,990) | (326,464) | ||||||||
Purchases of | |||||||||||
AFS securities | (1,648,938) | (460,124) | (737,580) | ||||||||
HTM securities | (125,480) | (423,682) | (682,622) | ||||||||
Federal Home Loan Bank and Federal Reserve Bank stocks | (84,152) | (246,836) | (347,323) | ||||||||
Premises, equipment, and software | (54,682) | (67,459) | (65,854) | ||||||||
Other intangibles | (200) | — | — | ||||||||
Proceeds from | |||||||||||
Sales of AFS securities | 626,283 | 1,367,476 | 601,130 | ||||||||
Sale of Federal Home Loan Bank and Federal Reserve Bank stocks | 144,000 | 270,023 | 282,145 | ||||||||
Prepayments, calls, and maturities of AFS investment securities | 1,343,056 | 561,659 | 633,859 | ||||||||
Prepayments, calls, and maturities of HTM investment securities | 449,078 | 260,510 | 217,836 | ||||||||
Sales, prepayments, calls and maturities of other assets | 27,964 | 10,250 | 41,856 | ||||||||
Net cash received in ABRC sale | 256,511 | — | — | ||||||||
Net change in tax credit and alternative investments | (55,134) | (67,632) | (57,327) | ||||||||
Net cash (paid) received in acquisitions | (31,518) | 551,250 | 59,472 | ||||||||
Net cash provided by (used in) investing activities | (793,737) | 1,617,446 | (380,872) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Net increase (decrease) in deposits | 2,497,378 | (1,842,748) | 270,481 | ||||||||
Net decrease in deposits due to branch sales | (222,878) | — | — | ||||||||
Net increase (decrease) in short-term funding | (238,655) | 308,039 | (581,371) | ||||||||
Net increase (decrease) in short-term FHLB advances | (520,000) | (380,000) | 616,000 | ||||||||
Repayment of long-term FHLB advances | (1,040,972) | (764,657) | (2,150,016) | ||||||||
Proceeds from long-term FHLB advances | 4,215 | 751,573 | 1,837,680 | ||||||||
Redemption of Corporation's senior notes | — | (250,000) | — | ||||||||
Repayment of finance lease principal | (1,081) | (1) | — | ||||||||
Proceeds from issuance of long-term funding | — | — | 300,000 | ||||||||
Proceeds from issuance of preferred shares | 96,796 | — | 97,315 | ||||||||
Proceeds from issuance of common stock for stock-based compensation plans | 3,966 | 11,216 | 18,408 | ||||||||
Common stock warrants exercised | — | — | (1) | ||||||||
Purchase of treasury stock, open market purchases | (71,255) | (177,484) | (206,450) | ||||||||
Purchase of treasury stock, stock-based compensation plans | (6,113) | (8,592) | (7,148) | ||||||||
Purchase of preferred shares | — | — | (537) | ||||||||
Purchase of common stock returned to authorized but unissued | — | — | (33,075) | ||||||||
Cash dividends on common stock | (112,023) | (111,804) | (105,519) | ||||||||
Cash dividends on preferred stock | (18,358) | (15,202) | (10,784) | ||||||||
Net cash provided by (used in) financing activities | 371,020 | (2,479,660) | 44,983 | ||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 127,304 | (287,954) | 160,678 | ||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 588,744 | 876,698 | 716,018 | ||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 716,048 | $ | 588,744 | $ | 876,698 |
For the Years Ended December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Supplemental disclosures of cash flow information | |||||||||||
Cash paid for interest | $ | 159,291 | $ | 332,919 | $ | 261,724 | |||||
Cash paid for income and franchise taxes | 17,734 | 41,131 | 18,335 | ||||||||
Loans and bank premises transferred to OREO | 19,261 | 10,513 | 26,517 | ||||||||
Capitalized mortgage servicing rights | 13,667 | 11,606 | 10,722 | ||||||||
Loans transferred into held for sale from portfolio, net | 264,570 | 313,570 | 33,010 | ||||||||
Transfer of HTM securities to AFS securities (adoption of ASU 2019-04) | — | 692,414 | — | ||||||||
Unsettled trades to purchase securities | — | — | 883 | ||||||||
Acquisitions | |||||||||||
Fair value of assets acquired, including cash and cash equivalents | 456,480 | 695,848 | 2,567,488 | ||||||||
Fair value ascribed to goodwill and intangible assets | 23,548 | 29,837 | 261,243 | ||||||||
Fair value of liabilities assumed | 480,028 | 725,764 | 2,340,323 | ||||||||
Common stock issued in acquisition | — | (79) | 488,408 |
December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Cash and cash equivalents | $ | 716,048 | $ | 400,232 | $ | 782,784 | |||||
Restricted cash | — | 188,512 | 93,914 | ||||||||
Total cash, cash equivalents, and restricted cash shown on the consolidated statements of cash flows | $ | 716,048 | $ | 588,744 | $ | 876,698 |
December 31, 2019 | January 1, 2020 | |||||||||||||
($ in Thousands) | Allowance for Loan Losses | Allowance for Unfunded Commitments | CECL Day 1 Adjustment | ACLL Beginning Balance | ||||||||||
Commercial and industrial | $ | 91,133 | $ | 12,276 | $ | 48,921 | $ | 152,330 | ||||||
Commercial real estate - owner occupied | 10,284 | 127 | (1,851) | 8,560 | ||||||||||
Commercial and business lending | 101,417 | 12,403 | 47,070 | 160,890 | ||||||||||
Commercial real estate - investor | 40,514 | 530 | 2,287 | 43,331 | ||||||||||
Real estate construction | 24,915 | 7,532 | 25,814 | 58,261 | ||||||||||
Commercial real estate lending | 65,428 | 8,062 | 28,101 | 101,591 | ||||||||||
Total commercial | 166,846 | 20,465 | 75,171 | 262,482 | ||||||||||
Residential mortgage | 16,960 | — | 33,215 | 50,175 | ||||||||||
Home equity | 10,926 | 1,038 | 14,240 | 26,204 | ||||||||||
Other consumer | 6,639 | 405 | 8,520 | 15,564 | ||||||||||
Total consumer | 34,525 | 1,443 | 55,975 | 91,943 | ||||||||||
Total loans | $ | 201,371 | $ | 21,907 | $ | 131,147 | $ | 354,425 |
Standard | Description | Date of 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 ACL. 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 was 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 provided entities alternatives for measurement of accrued interest receivable, clarified 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 2020-02 was issued to further explain the measurement of current expected credit losses and the development, governance, and documentation of a systematic methodology. | 1st Quarter 2020 | The Corporation has adopted the Update using a modified retrospective approach. 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 key methodology assumptions. Those assumptions are based upon the existing probability of default and loss given default framework. At adoption, the Corporation utilized a single economic forecast over a 2-year reasonable and supportable forecast period. In the second year, the Corporation used straight-line reversion to historical losses. The Corporation recorded a $131 million adjustment to the ACL related to the adoption of this standard, which includes $61 thousand related to the HTM investment securities portfolio. The Corporation has elected to maintain pools accounted for under Subtopic 310-30 at adoption. The Corporation has elected to utilize the 2019 Capital Transition Relief for initial adoption, as well as the 2020 Capital Transition Relief as permitted under applicable regulations. Results for the periods after January 1, 2020 are presented in accordance with ASC 326 while prior period amounts continue to be reported in accordance with previously applicable standards. | |||||||||||||||||
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 was 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. | 1st Quarter 2020 | The Corporation has evaluated and determined it has an immaterial impact with minor changes in presentation. | |||||||||||||||||
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 was effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Entities should apply the amendment prospectively. | 1st Quarter 2020 | There has been no material impact on results of operations, financial position, and liquidity. The Corporation performs its annual impairment testing in May. |
Standard | Description | Date of adoption | Effect on financial statements | |||||||||||||||||
ASU 2020-03 Codification Improvements to Financial Instruments | The FASB issued an amendment to further clarify that all entities are required to provide the fair value option disclosures in paragraphs 825-10-50-24 through 50-32. The amendment also states that paragraphs 820-10-35-2A(g) and 820-10-35-18L are to include the phrase nonfinancial items accounted for as derivatives under Topic 815 to be consistent with the previous amendments to Section 820-10-35 that were made by ASU No. 2018-09, Codification Improvements. The amendment also clarifies that the disclosure requirements in Topic 320 apply to the disclosure requirements in Topic 942 for depository and lending institutions along with improving the understandability of the guidance relating to subtopic 470-50 and subtopic 820-10. Lastly, the amendment clarifies that the contractual term of a net investment in a lease determined in accordance with Topic 842 should be the contractual term used to measure expected credit losses under Topic 326 and that when an entity regains control of financial assets sold, an ACL should be recorded in accordance with Topic 326. | 1st Quarter 2020 | The Corporation has evaluated and determined it has an immaterial impact. | |||||||||||||||||
ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting | The FASB issued an amendment to provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendment only applies to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. | 1st Quarter 2020 | The Corporation has evaluated the impact of the Update and determined the expedients provided allow for simpler, more streamlined modifications to the financial instruments referencing LIBOR. A small population of loans have been modified under the new standard. |
Standard | Description | Date of anticipated adoption | Effect on financial statements | |||||||||||||||||
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 | Upon adoption, the Corporation will have changes in the presentation of its disclosures but no impact to its results of operation, 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 amendment is permitted. | 1st Quarter 2021 | Upon adoption, the Corporation will have an immaterial impact to its results of operation, financial position and liquidity. | |||||||||||||||||
ASU 2020-08 Codification Improvements to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs | The FASB issued this amendment to clarify that an entity should reevaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. 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 not permitted. | 1st Quarter 2021 | Upon adoption, the Corporation will have an immaterial impact to its results of operation, financial position and liquidity. | |||||||||||||||||
($ in Thousands) | Purchase Accounting Adjustments | February 14, 2020 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | — | $ | 44,782 | ||||
Investment securities AFS | (24) | 98,743 | ||||||
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | — | 781 | ||||||
Loans | (4,808) | 369,741 | ||||||
Premises and equipment, net | (3,005) | 4,865 | ||||||
Bank owned life insurance | 9 | 6,770 | ||||||
Goodwill | 14,812 | |||||||
Core deposit intangibles (included in other intangible assets, net on the face of the consolidated balance sheets) | 7,379 | 7,379 | ||||||
OREO (included in other assets on the face of the consolidated balance sheets) | 670 | 762 | ||||||
Other assets | 2,795 | 7,692 | ||||||
Total assets | $ | 556,328 | ||||||
Liabilities | ||||||||
Deposits | $ | 1,285 | $ | 438,684 | ||||
Other borrowings | 61 | 34,613 | ||||||
Accrued expenses and other liabilities | 179 | 6,730 | ||||||
Total liabilities | $ | 480,028 | ||||||
Total consideration paid | $ | 76,300 |
($ in Thousands) | February 14, 2020 | |||||||
Purchase price of loans at acquisition | $ | 77,221 | ||||||
Allowance for credit losses at acquisition | 3,504 | |||||||
Non-credit discount/(premium) at acquisition | (951) | |||||||
Par value of acquired loans at acquisition | $ | 79,774 |
($ 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 | ||||||
OREO (included in other assets on the face of the consolidated balance sheets) | (2,561) | 5,263 | ||||||
Other assets | — | 559 | ||||||
Total assets | $ | 725,764 | ||||||
Liabilities | ||||||||
Deposits | $ | 156 | $ | 725,173 | ||||
Other liabilities | 70 | 590 | ||||||
Total liabilities | $ | 725,764 | ||||||
($ in Thousands) |
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized (Losses) |
Fair Value | ||||||||||
Investment securities AFS | ||||||||||||||
U.S. Treasury securities | $ | 26,436 | $ | 95 | $ | — | $ | 26,531 | ||||||
Agency securities | 24,985 | 53 | — | 25,038 | ||||||||||
Obligations of state and political subdivisions (municipal securities) | 425,057 | 25,605 | — | 450,662 | ||||||||||
Residential mortgage-related securities | ||||||||||||||
FNMA / FHLMC | 1,448,806 | 12,935 | (500) | 1,461,241 | ||||||||||
GNMA | 231,364 | 4,176 | (3) | 235,537 | ||||||||||
Commercial mortgage-related securities | ||||||||||||||
FNMA / FHLMC | 19,654 | 3,250 | — | 22,904 | ||||||||||
GNMA | 511,429 | 13,327 | — | 524,756 | ||||||||||
Asset backed securities | ||||||||||||||
FFELP | 329,030 | 1,172 | (3,013) | 327,189 | ||||||||||
SBA | 8,637 | — | (53) | 8,584 | ||||||||||
Other debt securities | 3,000 | — | — | 3,000 | ||||||||||
Total investment securities AFS | $ | 3,028,399 | $ | 60,612 | $ | (3,570) | $ | 3,085,441 | ||||||
Investment securities HTM | ||||||||||||||
U.S. Treasury securities | $ | 999 | $ | 25 | $ | — | $ | 1,024 | ||||||
Obligations of state and political subdivisions (municipal securities) | 1,441,900 | 133,544 | — | 1,575,445 | ||||||||||
Residential mortgage-related securities | ||||||||||||||
FNMA / FHLMC | 54,599 | 2,891 | — | 57,490 | ||||||||||
GNMA | 114,553 | 4,260 | — | 118,813 | ||||||||||
Commercial mortgage-related securities | ||||||||||||||
FNMA/FHLMC | 11,211 | — | — | 11,211 | ||||||||||
GNMA | 255,742 | 9,218 | — | 264,960 | ||||||||||
Total investment securities HTM | $ | 1,879,005 | $ | 149,938 | $ | — | $ | 2,028,943 |
($ in Thousands) |
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized (Losses) |
Fair Value | ||||||||||
Investment securities AFS | ||||||||||||||
Obligations of state and political subdivisions (municipal securities) | $ | 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 AFS | $ | 3,251,950 | $ | 30,920 | $ | (20,284) | $ | 3,262,586 | ||||||
Investment securities HTM | ||||||||||||||
U.S. Treasury securities | $ | 999 | $ | 19 | $ | — | $ | 1,018 | ||||||
Obligations of state and political subdivisions (municipal securities) | 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 HTM | $ | 2,205,083 | $ | 79,744 | $ | (8,363) | $ | 2,276,465 |
AFS | HTM | |||||||||||||
($ in Thousands) |
Amortized
Cost |
Fair
Value |
Amortized
Cost |
Fair
Value |
||||||||||
Due in one year or less | $ | 7,385 | $ | 7,394 | $ | 29,665 | $ | 29,938 | ||||||
Due after one year through five years | 83,293 | 84,112 | 54,313 | 56,196 | ||||||||||
Due after five years through ten years | 350,687 | 371,076 | 187,853 | 197,850 | ||||||||||
Due after ten years | 38,113 | 42,650 | 1,171,068 | 1,292,485 | ||||||||||
Total debt securities | 479,478 | 505,231 | 1,442,900 | 1,576,469 | ||||||||||
Residential mortgage-related securities | ||||||||||||||
FNMA / FHLMC | 1,448,806 | 1,461,241 | 54,599 | 57,490 | ||||||||||
GNMA | 231,364 | 235,537 | 114,553 | 118,813 | ||||||||||
Commercial mortgage-related securities | ||||||||||||||
FNMA / FHLMC | 19,654 | 22,904 | 11,211 | 11,211 | ||||||||||
GNMA | 511,429 | 524,756 | 255,742 | 264,960 | ||||||||||
Asset backed securities | ||||||||||||||
FFELP | 329,030 | 327,189 | — | — | ||||||||||
SBA | 8,637 | 8,584 | — | — | ||||||||||
Total investment securities | $ | 3,028,399 | $ | 3,085,441 | $ | 1,879,005 | $ | 2,028,943 | ||||||
Ratio of Fair Value to Amortized Cost | 101.9 | % | 108.0 | % |
($ in Thousands) | AAA | AA | A | Total | ||||||||||
U.S. Treasury securities | $ | 999 | $ | — | $ | — | $ | 999 | ||||||
Obligations of state and political subdivisions (municipal securities) | 567,252 | 860,607 | 14,041 | 1,441,900 | ||||||||||
Residential mortgage-related securities | ||||||||||||||
FNMA/FHLMC | 54,599 | — | — | 54,599 | ||||||||||
GNMA | 114,553 | — | — | 114,553 | ||||||||||
Commercial mortgage-related securities | ||||||||||||||
FNMA/FHLMC | 11,211 | — | — | 11,211 | ||||||||||
GNMA | 255,742 | — | — | 255,742 | ||||||||||
Total HTM securities | $ | 1,004,357 | $ | 860,607 | $ | 14,041 | $ | 1,879,005 |
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Gross gains on AFS securities | $ | 9,312 | $ | 6,374 | $ | 1,954 | |||||
Gross (losses) on AFS securities | (90) | (13,861) | (3,938) | ||||||||
Write-up of equity securities without readily determinable fair values | — | 13,444 | — | ||||||||
Investment securities gains (losses), net | $ | 9,222 | $ | 5,957 | $ | (1,985) | |||||
Proceeds from sales of investment securities | $ | 626,283 | $ | 1,367,476 | $ | 601,130 |
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 AFS | ||||||||||||||||||||||||||
Residential mortgage-related securities | ||||||||||||||||||||||||||
FNMA / FHLMC | 7 | $ | (500) | $ | 163,002 | — | $ | — | $ | — | $ | (500) | $ | 163,002 | ||||||||||||
GNMA | 2 | (3) | 9,784 | — | — | — | (3) | 9,784 | ||||||||||||||||||
GNMA commercial mortgage-related securities | 1 | — | 287 | — | — | — | — | 287 | ||||||||||||||||||
Asset backed securities | ||||||||||||||||||||||||||
FFELP | 1 | (129) | 9,267 | 16 | (2,885) | 178,681 | (3,013) | 187,948 | ||||||||||||||||||
SBA | 14 | (53) | 8,379 | — | — | — | (53) | 8,379 | ||||||||||||||||||
Other debt securities | 2 | — | 2,000 | — | — | — | — | 2,000 | ||||||||||||||||||
Total | 27 | $ | (685) | $ | 192,720 | 16 | $ | (2,885) | $ | 178,681 | $ | (3,570) | $ | 371,400 | ||||||||||||
Investment securities HTM | ||||||||||||||||||||||||||
GNMA residential mortgage-related securities | 1 | $ | — | $ | 325 | — | $ | — | $ | — | $ | — | $ | 325 | ||||||||||||
Total | 1 | $ | — | $ | 325 | — | $ | — | $ | — | $ | — | $ | 325 |
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 AFS | ||||||||||||||||||||||||||
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 HTM | ||||||||||||||||||||||||||
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) | 2020 | 2019 | ||||||
PPP | $ | 767,757 | $ | — | ||||
Commercial and industrial | 7,701,422 | 7,354,594 | ||||||
Commercial real estate - owner occupied | 900,912 | 911,265 | ||||||
Commercial and business lending | 9,370,091 | 8,265,858 | ||||||
Commercial real estate - investor | 4,342,584 | 3,794,517 | ||||||
Real estate construction | 1,840,417 | 1,420,900 | ||||||
Commercial real estate lending | 6,183,001 | 5,215,417 | ||||||
Total commercial | 15,553,091 | 13,481,275 | ||||||
Residential mortgage | 7,878,324 | 8,136,980 | ||||||
Home equity | 707,255 | 852,025 | ||||||
Other consumer | 313,054 | 351,159 | ||||||
Total consumer | 8,898,632 | 9,340,164 | ||||||
Total loans | $ | 24,451,724 | $ | 22,821,440 |
($ in Thousands) | 2020 | 2019 | ||||||
Balance at beginning of year | $ | 16,772 | $ | 17,831 | ||||
New loans | 19,140 | 3,673 | ||||||
Repayments | (6,643) | (8,053) | ||||||
Change due to status of executive officers and directors | 152 | 3,320 | ||||||
Balance at end of year | $ | 29,420 | $ | 16,772 |
Term Loans Amortized Cost Basis by Origination Year(a)
|
||||||||||||||||||||||||||||||||
($ in Thousands) |
Rev Loans Converted to Term(a)
|
Rev Loans Amortized Cost Basis | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||||||||
PPP:(b)
|
||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||
Pass | $ | — | $ | — | $ | 745,767 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 745,767 | ||||||||||||||
Special Mention | — | — | 3,988 | — | — | — | — | — | 3,988 | |||||||||||||||||||||||
Potential Problem | — | — | 18,002 | — | — | — | — | — | 18,002 | |||||||||||||||||||||||
PPP | $ | — | $ | — | $ | 767,757 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 767,757 | ||||||||||||||
Commercial and industrial: | ||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||
Pass | $ | 4,628 | $ | 2,177,138 | $ | 1,389,260 | $ | 1,435,519 | $ | 1,182,302 | $ | 483,957 | $ | 305,998 | $ | 453,734 | $ | 7,427,908 | ||||||||||||||
Special Mention | — | 10,159 | 2,719 | 39,854 | 37,042 | 113 | 215 | 67 | 90,169 | |||||||||||||||||||||||
Potential Problem(c)
|
2,565 | 7,237 | 19,331 | 28,413 | 56,580 | 2,269 | 6,477 | 1,179 | 121,487 | |||||||||||||||||||||||
Nonaccrual(d)
|
16,852 | — | 6,238 | 5,789 | 17,014 | 16,623 | 8,781 | 7,414 | 61,859 | |||||||||||||||||||||||
Commercial and industrial | $ | 24,045 | $ | 2,194,534 | $ | 1,417,548 | $ | 1,509,575 | $ | 1,292,938 | $ | 502,962 | $ | 321,471 | $ | 462,394 | $ | 7,701,422 | ||||||||||||||
Commercial real estate - owner occupied: | ||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||
Pass | $ | 1,150 | $ | 18,022 | $ | 185,861 | $ | 209,069 | $ | 128,360 | $ | 99,546 | $ | 147,366 | $ | 79,111 | $ | 867,335 | ||||||||||||||
Special Mention | — | 113 | 1,882 | 3,122 | 300 | 658 | 264 | — | 6,339 | |||||||||||||||||||||||
Potential Problem | — | 3,486 | 4,104 | 8,916 | — | 1,490 | 4,437 | 3,747 | 26,179 | |||||||||||||||||||||||
Nonaccrual | — | — | — | — | — | 318 | — | 740 | 1,058 | |||||||||||||||||||||||
Commercial real estate - owner occupied | $ | 1,150 | $ | 21,621 | $ | 191,847 | $ | 221,107 | $ | 128,660 | $ | 102,012 | $ | 152,067 | $ | 83,598 | $ | 900,912 | ||||||||||||||
Commercial and business lending: | ||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||
Pass | $ | 5,778 | $ | 2,195,160 | $ | 2,320,888 | $ | 1,644,588 | $ | 1,310,662 | $ | 583,503 | $ | 453,364 | $ | 532,845 | $ | 9,041,009 | ||||||||||||||
Special Mention | — | 10,272 | 8,589 | 42,976 | 37,342 | 771 | 479 | 67 | 100,496 | |||||||||||||||||||||||
Potential Problem(c)
|
2,565 | 10,723 | 41,437 | 37,329 | 56,580 | 3,759 | 10,915 | 4,926 | 165,668 | |||||||||||||||||||||||
Nonaccrual(d)
|
16,852 | — | 6,238 | 5,789 | 17,014 | 16,941 | 8,781 | 8,154 | 62,917 | |||||||||||||||||||||||
Commercial and business lending | $ | 25,195 | $ | 2,216,154 | $ | 2,377,152 | $ | 1,730,682 | $ | 1,421,598 | $ | 604,974 | $ | 473,539 | $ | 545,992 | $ | 9,370,091 | ||||||||||||||
Commercial real estate - investor: | ||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||
Pass | $ | 10,971 | $ | 171,497 | $ | 1,249,644 | $ | 976,332 | $ | 720,237 | $ | 271,987 | $ | 341,658 | $ | 211,360 | $ | 3,942,714 | ||||||||||||||
Special Mention | — | — | 90,235 | 97,333 | 12,339 | — | 21,882 | 8,465 | 230,254 | |||||||||||||||||||||||
Potential Problem | — | 838 | 16,343 | 13,575 | 30,911 | 2,279 | 239 | 27,209 | 91,396 | |||||||||||||||||||||||
Nonaccrual | 19,803 | — | 10,141 | 53,056 | 446 | 14,267 | — | 309 | 78,220 | |||||||||||||||||||||||
Commercial real estate - investor | $ | 30,774 | $ | 172,335 | $ | 1,366,364 | $ | 1,140,297 | $ | 763,933 | $ | 288,533 | $ | 363,779 | $ | 247,343 | $ | 4,342,584 | ||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||
Pass | $ | 776 | $ | 47,880 | $ | 645,925 | $ | 738,561 | $ | 294,910 | $ | 25,219 | $ | 2,420 | $ | 16,768 | $ | 1,771,682 | ||||||||||||||
Special Mention | — | — | 487 | 494 | 48,283 | 42 | — | 30 | 49,336 | |||||||||||||||||||||||
Potential Problem | — | — | 135 | — | 18,803 | — | 93 | 15 | 19,046 | |||||||||||||||||||||||
Nonaccrual | — | — | — | — | — | 16 | — | 338 | 353 | |||||||||||||||||||||||
Real estate construction | $ | 776 | $ | 47,880 | $ | 646,547 | $ | 739,055 | $ | 361,996 | $ | 25,277 | $ | 2,513 | $ | 17,150 | $ | 1,840,417 | ||||||||||||||
Commercial real estate lending: | ||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||
Pass | $ | 11,746 | $ | 219,377 | $ | 1,895,569 | $ | 1,714,893 | $ | 1,015,146 | $ | 297,205 | $ | 344,078 | $ | 228,127 | $ | 5,714,396 | ||||||||||||||
Special Mention | — | — | 90,722 | 97,827 | 60,622 | 42 | 21,882 | 8,494 | 279,590 | |||||||||||||||||||||||
Potential Problem | — | 838 | 16,479 | 13,575 | 49,714 | 2,279 | 332 | 27,224 | 110,442 | |||||||||||||||||||||||
Nonaccrual | 19,803 | — | 10,141 | 53,056 | 446 | 14,283 | — | 647 | 78,573 | |||||||||||||||||||||||
Commercial real estate lending | $ | 31,549 | $ | 220,215 | $ | 2,012,911 | $ | 1,879,352 | $ | 1,125,929 | $ | 313,810 | $ | 366,292 | $ | 264,493 | $ | 6,183,001 |
Term Loans Amortized Cost Basis by Origination Year(a)
|
||||||||||||||||||||||||||||||||
($ in Thousands) |
Rev Loans Converted to Term(a)
|
Rev Loans Amortized Cost Basis | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||||||||
Total commercial: | ||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||
Pass | $ | 17,524 | $ | 2,414,537 | $ | 4,216,457 | $ | 3,359,482 | $ | 2,325,808 | $ | 880,708 | $ | 797,441 | $ | 760,973 | $ | 14,755,405 | ||||||||||||||
Special Mention | — | 10,272 | 99,311 | 140,803 | 97,964 | 813 | 22,361 | 8,562 | 380,086 | |||||||||||||||||||||||
Potential Problem(c)
|
2,565 | 11,561 | 57,916 | 50,905 | 106,295 | 6,038 | 11,247 | 32,150 | 276,111 | |||||||||||||||||||||||
Nonaccrual(d)
|
36,655 | — | 16,379 | 58,845 | 17,460 | 31,224 | 8,781 | 8,801 | 141,490 | |||||||||||||||||||||||
Total commercial | $ | 56,745 | $ | 2,436,370 | $ | 4,390,063 | $ | 3,610,033 | $ | 2,547,526 | $ | 918,783 | $ | 839,831 | $ | 810,485 | $ | 15,553,091 | ||||||||||||||
Residential mortgage: | ||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||
Pass | $ | — | $ | — | $ | 2,185,240 | $ | 1,490,589 | $ | 615,118 | $ | 998,072 | $ | 911,797 | $ | 1,612,971 | $ | 7,813,788 | ||||||||||||||
Special Mention | — | — | — | 355 | 330 | 102 | 126 | 537 | 1,450 | |||||||||||||||||||||||
Potential Problem | — | — | 1,200 | 689 | 652 | — | 179 | 1,028 | 3,749 | |||||||||||||||||||||||
Nonaccrual | — | — | 1,478 | 2,271 | 5,882 | 7,116 | 11,003 | 31,587 | 59,337 | |||||||||||||||||||||||
Residential mortgage | $ | — | $ | — | $ | 2,187,918 | $ | 1,493,903 | $ | 621,983 | $ | 1,005,290 | $ | 923,105 | $ | 1,646,124 | $ | 7,878,324 | ||||||||||||||
Home equity: | ||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||
Pass | $ | 10,224 | $ | 569,389 | $ | 2,057 | $ | 12,968 | $ | 15,792 | $ | 11,594 | $ | 5,803 | $ | 76,165 | $ | 693,767 | ||||||||||||||
Special Mention | 596 | 631 | — | 39 | 14 | 39 | 4 | 804 | 1,532 | |||||||||||||||||||||||
Potential Problem | — | 1,922 | — | — | — | — | — | 146 | 2,068 | |||||||||||||||||||||||
Nonaccrual | 1,600 | 100 | 965 | 134 | 410 | 319 | 711 | 7,249 | 9,888 | |||||||||||||||||||||||
Home equity | $ | 12,421 | $ | 572,041 | $ | 3,022 | $ | 13,141 | $ | 16,216 | $ | 11,952 | $ | 6,518 | $ | 84,364 | $ | 707,255 | ||||||||||||||
Other consumer: | ||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||
Pass | $ | 70 | $ | 165,114 | $ | 9,525 | $ | 10,309 | $ | 3,987 | $ | 1,872 | $ | 1,185 | $ | 120,425 | $ | 312,416 | ||||||||||||||
Special Mention | 5 | 438 | 13 | 16 | 11 | 4 | 7 | 8 | 498 | |||||||||||||||||||||||
Nonaccrual | 5 | 33 | 9 | 49 | 21 | 10 | — | 18 | 140 | |||||||||||||||||||||||
Other consumer | $ | 81 | $ | 165,585 | $ | 9,547 | $ | 10,374 | $ | 4,019 | $ | 1,886 | $ | 1,192 | $ | 120,451 | $ | 313,054 | ||||||||||||||
Total consumer: | ||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||
Pass | $ | 10,294 | $ | 734,502 | $ | 2,196,822 | $ | 1,513,865 | $ | 634,897 | $ | 1,011,539 | $ | 918,785 | $ | 1,809,561 | $ | 8,819,971 | ||||||||||||||
Special Mention | 602 | 1,069 | 13 | 410 | 356 | 145 | 137 | 1,349 | 3,480 | |||||||||||||||||||||||
Potential Problem | — | 1,922 | 1,200 | 689 | 652 | — | 179 | 1,174 | 5,817 | |||||||||||||||||||||||
Nonaccrual | 1,605 | 133 | 2,452 | 2,454 | 6,313 | 7,445 | 11,714 | 38,854 | 69,364 | |||||||||||||||||||||||
Total consumer | $ | 12,501 | $ | 737,626 | $ | 2,200,487 | $ | 1,517,417 | $ | 642,218 | $ | 1,019,128 | $ | 930,816 | $ | 1,850,939 | $ | 8,898,632 | ||||||||||||||
Total loans: | ||||||||||||||||||||||||||||||||
Risk rating: | ||||||||||||||||||||||||||||||||
Pass | $ | 27,819 | $ | 3,149,039 | $ | 6,413,278 | $ | 4,873,347 | $ | 2,960,705 | $ | 1,892,247 | $ | 1,716,226 | $ | 2,570,534 | $ | 23,575,376 | ||||||||||||||
Special Mention | 602 | 11,341 | 99,324 | 141,213 | 98,320 | 958 | 22,498 | 9,911 | 383,566 | |||||||||||||||||||||||
Potential Problem(c)
|
2,565 | 13,483 | 59,116 | 51,593 | 106,947 | 6,038 | 11,426 | 33,324 | 281,928 | |||||||||||||||||||||||
Nonaccrual(d)
|
38,260 | 133 | 18,831 | 61,298 | 23,773 | 38,669 | 20,496 | 47,655 | 210,854 | |||||||||||||||||||||||
Total loans | $ | 69,246 | $ | 3,173,996 | $ | 6,590,550 | $ | 5,127,451 | $ | 3,189,745 | $ | 1,937,912 | $ | 1,770,647 | $ | 2,661,424 | $ | 24,451,724 |
($ 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 | $ | 22,294,939 | $ | 247,022 | $ | 161,097 | $ | 118,380 | $ | 22,821,440 |
Accruing | ||||||||||||||||||||||||||||||||
($ in Thousands) |
Current(a)
|
30-59 Days
Past Due |
60-89 Days
Past Due |
90+ Days
Past Due |
Nonaccrual(b)(c)
|
Total | ||||||||||||||||||||||||||
PPP | $ | 767,757 | $ | — | $ | — | $ | — | $ | — | $ | 767,757 | ||||||||||||||||||||
Commercial and industrial | 7,633,269 | 2,819 | 3,300 | 175 | 61,859 | 7,701,422 | ||||||||||||||||||||||||||
Commercial real estate - owner occupied | 899,480 | 158 | 215 | — | 1,058 | 900,912 | ||||||||||||||||||||||||||
Commercial and business lending | 9,300,506 | 2,977 | 3,516 | 175 | 62,917 | 9,370,091 | ||||||||||||||||||||||||||
Commercial real estate - investor | 4,251,571 | 1,024 | 11,769 | — | 78,220 | 4,342,584 | ||||||||||||||||||||||||||
Real estate construction | 1,839,073 | 991 | — | — | 353 | 1,840,417 | ||||||||||||||||||||||||||
Commercial real estate lending | 6,090,644 | 2,015 | 11,769 | — | 78,573 | 6,183,001 | ||||||||||||||||||||||||||
Total commercial | 15,391,150 | 4,992 | 15,284 | 175 | 141,490 | 15,553,091 | ||||||||||||||||||||||||||
Residential mortgage | 7,808,294 | 8,975 | 1,410 | 308 | 59,337 | 7,878,324 | ||||||||||||||||||||||||||
Home equity | 692,565 | 3,071 | 1,731 | — | 9,888 | 707,255 | ||||||||||||||||||||||||||
Other consumer | 310,200 | 1,039 | 560 | 1,115 | 140 | 313,054 | ||||||||||||||||||||||||||
Total consumer | 8,811,060 | 13,085 | 3,701 | 1,423 | 69,364 | 8,898,632 | ||||||||||||||||||||||||||
Total loans | $ | 24,202,209 | $ | 18,077 | $ | 18,985 | $ | 1,598 | $ | 210,854 | $ | 24,451,724 |
Accruing | ||||||||||||||||||||||||||||||||
($ in Thousands) | Current |
30-59 Days
Past Due |
60-89 Days
Past Due |
90+ Days
Past Due |
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 | $ | 22,679,696 | $ | 18,188 | $ | 2,916 | $ | 2,259 | $ | 118,380 | $ | 22,821,440 |
($ 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 with a related allowance | $ | 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 with n no related allowance | $ | 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 |
December 31, 2020 | December 31, 2019 | December 31, 2018 | ||||||||||||||||||
($ 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 | $ | 12,713 | $ | 6,967 | $ | 16,678 | $ | 7,376 | $ | 25,478 | $ | 249 | ||||||||
Commercial real estate - owner occupied | 1,711 | — | 1,676 | — | 2,080 | — | ||||||||||||||
Commercial real estate - investor | 26,435 | 225 | 293 | — | 799 | 933 | ||||||||||||||
Real estate construction | 260 | 111 | 298 | 179 | 311 | 198 | ||||||||||||||
Residential mortgage | 7,825 | 11,509 | 3,955 | 13,035 | 16,036 | 22,279 | ||||||||||||||
Home equity | 1,957 | 1,379 | 1,896 | 1,904 | 7,385 | 2,627 | ||||||||||||||
Other consumer | 1,191 | — | 1,246 | 1 | 1,174 | 6 | ||||||||||||||
Total restructured loans(b)
|
$ | 52,092 | $ | 20,190 | $ | 26,041 | $ | 22,494 | $ | 53,263 | $ | 26,292 |
Years Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
($ 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 | 7 | $ | 1,823 | $ | 2,059 | 6 | $ | 7,588 | $ | 7,703 | 5 | $ | 1,315 | $ | 1,330 | ||||||||||||||
Commercial real estate - owner occupied | 4 | 658 | 689 | — | — | — | — | — | — | ||||||||||||||||||||
Commercial real estate - investor | 10 | 26,563 | 26,567 | — | — | — | 2 | 1,393 | 1,472 | ||||||||||||||||||||
Real estate construction | — | — | — | 1 | 77 | 77 | 1 | 78 | 80 | ||||||||||||||||||||
Residential mortgage | 36 | 6,031 | 6,113 | 53 | 7,436 | 7,517 | 41 | 6,977 | 7,210 | ||||||||||||||||||||
Home equity | 20 | 1,078 | 1,697 | 24 | 831 | 845 | 34 | 1,649 | 1,681 | ||||||||||||||||||||
Other consumer | — | — | — | 1 | 8 | 8 | 3 | 17 | 19 | ||||||||||||||||||||
Total loans modified | 77 | $ | 36,154 | $ | 37,125 | 85 | $ | 15,940 | $ | 16,150 | 86 | $ | 11,429 | $ | 11,792 |
Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
($ in Thousands) |
Number of
Loans |
Recorded
Investment |
Number of
Loans |
Recorded
Investment |
Number of
Loans |
Recorded
Investment |
||||||||||||||
Commercial and industrial | — | $ | — | — | $ | — | 3 | $ | — | |||||||||||
Commercial real estate — investor | — | — | 1 | 461 | — | — | ||||||||||||||
Residential mortgage | 5 | 1,036 | 38 | 5,630 | 20 | 3,553 | ||||||||||||||
Home equity | 4 | 208 | 27 | 868 | 32 | 1,688 | ||||||||||||||
Total loans modified | 9 | $ | 1,244 | 66 | $ | 6,959 | 55 | $ | 5,241 |
($ in Thousands) | Dec. 31, 2019 | Cumulative effect of ASU 2016-13 adoption (CECL) | Jan. 1, 2020 | Charge offs | Recoveries | Net Charge offs | Gross up of allowance for PCD loans at acquisition | Provision recorded at acquisition | Provision for credit losses | Dec. 31, 2020 | ACLL / Loans | ||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||||||||||
PPP | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 531 | $ | 531 | |||||||||||||||
Commercial and industrial | 91,133 | 52,919 | 144,052 | (80,320) | 7,004 | (73,316) | 293 | 408 | 71,355 | 142,793 | |||||||||||||||||||||||||
Commercial real estate — owner occupied | 10,284 | (1,851) | 8,433 | (419) | 147 | (272) | 890 | 255 | 1,967 | 11,274 | |||||||||||||||||||||||||
Commercial and business lending | 101,417 | 51,068 | 152,485 | (80,739) | 7,151 | (73,588) | 1,183 | 663 | 73,853 | 154,598 | |||||||||||||||||||||||||
Commercial real estate — investor | 40,514 | 2,041 | 42,555 | (22,920) | 643 | (22,277) | 753 | 472 | 71,933 | 93,435 | |||||||||||||||||||||||||
Real estate construction | 24,915 | 7,467 | 32,382 | (19) | 49 | 31 | 435 | 492 | 25,854 | 59,193 | |||||||||||||||||||||||||
Commercial real estate lending | 65,428 | 9,508 | 74,937 | (22,938) | 692 | (22,246) | 1,188 | 964 | 97,787 | 152,629 | |||||||||||||||||||||||||
Total commercial | 166,846 | 60,576 | 227,422 | (103,677) | 7,844 | (95,834) | 2,371 | 1,627 | 171,641 | 307,226 | |||||||||||||||||||||||||
Residential mortgage | 16,960 | 33,215 | 50,175 | (1,867) | 500 | (1,367) | 651 | 403 | (6,864) | 42,996 | |||||||||||||||||||||||||
Home equity | 10,926 | 11,649 | 22,575 | (1,719) | 1,978 | 259 | 422 | 374 | (4,781) | 18,849 | |||||||||||||||||||||||||
Other consumer | 6,639 | 7,016 | 13,655 | (4,790) | 1,101 | (3,689) | 61 | 140 | 4,462 | 14,630 | |||||||||||||||||||||||||
Total consumer | 34,525 | 51,880 | 86,405 | (8,376) | 3,579 | (4,797) | 1,134 | 917 | (7,183) | 76,475 | |||||||||||||||||||||||||
Total loans | $ | 201,371 | $ | 112,457 | $ | 313,828 | $ | (112,053) | $ | 11,422 | $ | (100,631) | $ | 3,504 | $ | 2,543 | $ | 164,457 | $ | 383,702 | |||||||||||||||
Allowance for unfunded commitments | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 12,276 | $ | (3,998) | $ | 8,278 | $ | — | $ | — | $ | — | $ | — | $ | 61 | $ | 13,972 | $ | 22,311 | |||||||||||||||
Commercial real estate — owner occupied | 127 | — | 127 | — | — | — | — | 4 | 135 | 266 | |||||||||||||||||||||||||
Commercial and business lending | 12,403 | (3,998) | 8,405 | — | — | — | — | 65 | 14,108 | 22,577 | |||||||||||||||||||||||||
Commercial real estate — investor | 530 | 246 | 776 | — | — | — | — | 2 | (141) | 636 | |||||||||||||||||||||||||
Real estate construction | 7,532 | 18,347 | 25,879 | — | — | — | — | 45 | (7,038) | 18,886 | |||||||||||||||||||||||||
Commercial real estate lending | 8,062 | 18,593 | 26,655 | — | — | — | — | 47 | (7,179) | 19,522 | |||||||||||||||||||||||||
Total commercial | 20,465 | 14,595 | 35,060 | — | — | — | — | 112 | 6,929 | 42,099 | |||||||||||||||||||||||||
Home equity | 1,038 | 2,591 | 3,629 | — | — | — | — | 66 | (577) | 3,118 | |||||||||||||||||||||||||
Other consumer | 405 | 1,504 | 1,909 | — | — | — | — | — | 649 | 2,557 | |||||||||||||||||||||||||
Total consumer | 1,443 | 4,095 | 5,538 | — | — | — | — | 66 | 72 | 5,676 | |||||||||||||||||||||||||
Total loans | $ | 21,907 | $ | 18,690 | $ | 40,597 | $ | — | $ | — | $ | — | $ | — | $ | 179 | $ | 7,000 | $ | 47,776 | |||||||||||||||
Allowance for credit losses on loans | |||||||||||||||||||||||||||||||||||
PPP | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 531 | $ | 531 | 0.07 | % | |||||||||||||
Commercial and industrial | 103,409 | 48,921 | 152,330 | (80,320) | 7,004 | (73,316) | 293 | 469 | 85,327 | 165,105 | 2.14 | % | |||||||||||||||||||||||
Commercial real estate — owner occupied | 10,411 | (1,851) | 8,560 | (419) | 147 | (272) | 890 | 259 | 2,102 | 11,539 | 1.28 | % | |||||||||||||||||||||||
Commercial and business lending | 113,820 | 47,070 | 160,890 | (80,739) | 7,151 | (73,588) | 1,183 | 728 | 87,961 | 177,175 | 1.89 | % | |||||||||||||||||||||||
Commercial real estate — investor | 41,044 | 2,287 | 43,331 | (22,920) | 643 | (22,277) | 753 | 474 | 71,792 | 94,071 | 2.17 | % | |||||||||||||||||||||||
Real estate construction | 32,447 | 25,814 | 58,261 | (19) | 49 | 31 | 435 | 537 | 18,816 | 78,079 | 4.24 | % | |||||||||||||||||||||||
Commercial real estate lending | 73,490 | 28,101 | 101,591 | (22,938) | 692 | (22,246) | 1,188 | 1,011 | 90,608 | 172,151 | 2.78 | % | |||||||||||||||||||||||
Total commercial | 187,311 | 75,171 | 262,482 | (103,677) | 7,844 | (95,834) | 2,371 | 1,739 | 178,569 | 349,326 | 2.25 | % | |||||||||||||||||||||||
Residential mortgage | 16,960 | 33,215 | 50,175 | (1,867) | 500 | (1,367) | 651 | 403 | (6,865) | 42,997 | 0.55 | % | |||||||||||||||||||||||
Home equity | 11,964 | 14,240 | 26,204 | (1,719) | 1,978 | 259 | 422 | 440 | (5,358) | 21,967 | 3.11 | % | |||||||||||||||||||||||
Other consumer | 7,044 | 8,520 | 15,564 | (4,790) | 1,101 | (3,689) | 61 | 140 | 5,111 | 17,187 | 5.49 | % | |||||||||||||||||||||||
Total consumer | 35,968 | 55,975 | 91,943 | (8,376) | 3,579 | (4,797) | 1,134 | 983 | (7,112) | 82,151 | 0.92 | % | |||||||||||||||||||||||
Total loans | $ | 223,278 | $ | 131,147 | $ | 354,425 | $ | (112,053) | $ | 11,422 | $ | (100,631) | $ | 3,504 | $ | 2,722 | $ | 171,457 | $ | 431,478 | 1.76 | % |
($ in Thousands) | December 31, 2018 | Charge offs | Recoveries | Net Charge offs | Provision for loan losses | December 31, 2019 | ||||||||||||||
Allowance for loan losses | ||||||||||||||||||||
Commercial and industrial | $ | 108,835 | $ | (63,315) | $ | 11,875 | $ | (51,441) | $ | 33,738 | $ | 91,133 | ||||||||
Commercial real estate — owner occupied | 9,255 | (222) | 2,795 | 2,573 | (1,543) | 10,284 | ||||||||||||||
Commercial and business lending | 118,090 | (63,537) | 14,670 | (48,868) | 32,195 | 101,417 | ||||||||||||||
Commercial real estate — investor | 40,844 | — | 31 | 31 | (361) | 40,514 | ||||||||||||||
Real estate construction | 28,240 | (60) | 302 | 243 | (3,568) | 24,915 | ||||||||||||||
Commercial real estate lending | 69,084 | (60) | 333 | 274 | (3,929) | 65,428 | ||||||||||||||
Total commercial | 187,174 | (63,597) | 15,003 | (48,594) | 28,266 | 166,846 | ||||||||||||||
Residential mortgage | 25,595 | (3,322) | 692 | (2,630) | (6,005) | 16,960 | ||||||||||||||
Home equity | 19,266 | (1,846) | 2,599 | 753 | (9,093) | 10,926 | ||||||||||||||
Other consumer | 5,988 | (5,548) | 868 | (4,681) | 5,332 | 6,639 | ||||||||||||||
Total consumer | 50,849 | (10,716) | 4,158 | (6,558) | (9,766) | 34,525 | ||||||||||||||
Total loans | $ | 238,023 | $ | (74,313) | $ | 19,161 | $ | (55,152) | $ | 18,500 | $ | 201,371 |
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Core deposit intangibles | |||||||||||||||||
Gross carrying amount at the beginning of the year | $ | 80,730 | $ | 58,100 | $ | — | |||||||||||
Additions during the period | 7,379 | 22,630 | 58,100 | ||||||||||||||
Accumulated amortization | (21,205) | (12,456) | (5,326) | ||||||||||||||
Net book value | $ | 66,904 | $ | 68,274 | $ | 52,774 | |||||||||||
Amortization during the year | $ | 8,749 | $ | 7,130 | $ | 5,326 | |||||||||||
Other intangibles | |||||||||||||||||
Gross carrying amount at the beginning of the year | $ | 38,970 | $ | 44,887 | $ | 34,572 | |||||||||||
Additions during the period | 200 | — | 10,359 | ||||||||||||||
Reductions due to sale | (17,435) | (217) | (43) | ||||||||||||||
Accumulated amortization | (20,385) | (24,643) | (21,825) | ||||||||||||||
Net book value | $ | 1,350 | $ | 20,027 | $ | 23,062 | |||||||||||
Amortization during the year | $ | 1,443 | $ | 2,818 | $ | 2,833 |
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Mortgage servicing rights | |||||||||||||||||
Mortgage servicing rights at beginning of year | $ | 67,607 | $ | 68,433 | $ | 59,168 | |||||||||||
Additions from acquisition | 1,357 | — | 8,136 | ||||||||||||||
Additions | 13,667 | 11,606 | 10,722 | ||||||||||||||
Amortization | (22,664) | (12,432) | (9,594) | ||||||||||||||
Mortgage servicing rights at end of year | $ | 59,967 | $ | 67,607 | $ | 68,433 | |||||||||||
Valuation allowance at beginning of year | (302) | (239) | (784) | ||||||||||||||
(Additions) recoveries, net | (17,704) | (63) | 545 | ||||||||||||||
Valuation allowance at end of year | (18,006) | (302) | (239) | ||||||||||||||
Mortgage servicing rights, net | $ | 41,961 | $ | 67,306 | $ | 68,193 | |||||||||||
Fair value of mortgage servicing rights | $ | 41,990 | $ | 72,532 | $ | 81,012 | |||||||||||
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) | 7,743,956 | 8,488,969 | 8,600,983 | ||||||||||||||
Mortgage servicing rights, net to servicing portfolio | 0.54 | % | 0.79 | % | 0.79 | % | |||||||||||
Mortgage servicing rights expense(a)
|
$ | 40,369 | $ | 12,494 | $ | 9,049 |
($ in Thousands) | Core Deposit Intangibles | Other Intangibles | Mortgage Servicing Rights | ||||||||||||||
Year ending December 31, | |||||||||||||||||
2021 | $ | 8,811 | $ | 200 | $ | 12,895 | |||||||||||
2022 | 8,811 | 200 | 14,372 | ||||||||||||||
2023 | 8,811 | 200 | 10,178 | ||||||||||||||
2024 | 8,811 | 200 | 7,502 | ||||||||||||||
2025 | 8,811 | 200 | 5,726 | ||||||||||||||
Beyond 2025 | 22,849 | 350 | 9,295 | ||||||||||||||
Total Estimated Amortization Expense | $ | 66,904 | $ | 1,350 | $ | 59,967 |
2020 | 2019 | ||||||||||||||||
($ in Thousands)
|
Estimated
Useful Lives |
Cost |
Accumulated
Depreciation |
Net Book
Value |
Net Book
Value |
||||||||||||
Land | — | $ | 70,431 | $ | — | $ | 70,431 | $ | 69,649 | ||||||||
Land improvements | 3 – 15 years | 18,488 | 8,716 | 9,771 | 9,355 | ||||||||||||
Buildings and improvements | 5 – 39 years | 390,298 | 168,136 | 222,162 | 230,358 | ||||||||||||
Computers | 3 – 5 years | 52,846 | 38,128 | 14,718 | 13,242 | ||||||||||||
Furniture, fixtures and other equipment | 3 – 15 years | 174,362 | 116,304 | 58,058 | 53,342 | ||||||||||||
Operating leases | — | 46,632 | 14,638 | 31,994 | 45,381 | ||||||||||||
Leasehold improvements | 3 – 15 years | 33,706 | 21,925 | 11,781 | 13,958 | ||||||||||||
Total premises and equipment | $ | 786,761 | $ | 367,847 | $ | 418,914 | $ | 435,284 |
Twelve Months Ended December 31, | ||||||||||||||
($ in Thousands) | 2020 | 2019 | ||||||||||||
Operating Lease Costs | $ | 11,450 | $ | 11,006 | ||||||||||
Finance Lease Costs | 154 | 36 | ||||||||||||
Operating Lease Cash Flows | 11,276 | 11,305 | ||||||||||||
Finance Lease Cash Flows | 122 | 35 |
Consolidated Balance Sheets Category | December 31, 2020 | December 31, 2019 | |||||||||
($ in Thousands) | Amount | ||||||||||
Operating lease right-of-use asset | Premises and equipment | $ | 31,994 | $ | 45,381 | ||||||
Finance lease right-of-use asset | Other assets | 962 | 2,188 | ||||||||
Operating lease liability | Accrued expenses and other liabilities | 36,425 | 49,292 | ||||||||
Finance lease liability | Other long-term funding | 1,128 | 2,209 |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||
($ in Thousands) | Lease payments | Weighted-average lease term (in years) | Weighted-average discount rate | Lease payments | Weighted-average lease term (in years) | Weighted-average discount rate | ||||||||||||||
Operating leases | ||||||||||||||||||||
Equipment | $ | 386 | 2.49 | 0.46 | % | $ | 46 | 0.83 | 2.72 | % | ||||||||||
Retail and corporate offices | 34,036 | 6.04 | 3.33 | % | 48,940 | 6.49 | 3.34 | % | ||||||||||||
Land | 6,385 | 8.99 | 3.09 | % | 6,594 | 9.57 | 3.21 | % | ||||||||||||
Total operating leases | $ | 40,806 | 6.45 | 3.27 | % | $ | 55,580 | 6.83 | 3.32 | % | ||||||||||
Finance leases | ||||||||||||||||||||
Land | $ | 1,145 | 1.65 | 1.05 | % | $ | 4,827 | 39.67 | 3.99 | % | ||||||||||
Total finance leases | $ | 1,145 | 1.65 | 1.05 | % | $ | 4,827 | 39.67 | 3.99 | % |
($ in Thousands) | Operating Leases | Finance Leases | Total Leases | ||||||||
Twelve Months Ending December 31, 2021 | $ | 9,120 | $ | 172 | $ | 9,293 | |||||
2022 | 6,791 | 973 | 7,763 | ||||||||
2023 | 5,525 | — | 5,525 | ||||||||
2024 | 4,760 | — | 4,760 | ||||||||
2025 | 3,818 | — | 3,818 | ||||||||
Beyond 2025 | 10,792 | — | 10,792 | ||||||||
Total lease payments | $ | 40,806 | $ | 1,145 | $ | 41,952 | |||||
Less: interest | 4,382 | 17 | 4,399 | ||||||||
Present value of lease payments | $ | 36,425 | $ | 1,128 | $ | 37,553 |
($ in Thousands) | Payments | Receipts | ||||||
2021 | $ | 9,208 | $ | 3,148 | ||||
2022 | 10,189 | 2,595 | ||||||
2023 | 6,086 | 1,986 | ||||||
2024 | 5,439 | 1,736 | ||||||
2025 | 4,268 | 1,625 | ||||||
Thereafter | 11,679 | 7,568 | ||||||
Total | $ | 46,868 | $ | 18,658 |
($ in Thousands) | 2020 | 2019 | ||||||
Noninterest-bearing demand | $ | 7,661,728 | $ | 5,450,709 | ||||
Savings | 3,650,085 | 2,735,036 | ||||||
Interest-bearing demand | 6,090,869 | 5,329,717 | ||||||
Money market | 7,322,769 | 7,640,798 | ||||||
Brokered CDs | — | 5,964 | ||||||
Other time | 1,757,030 | 2,616,839 | ||||||
Total deposits | $ | 26,482,481 | $ | 23,779,064 |
Maturities During Year Ending December 31, | ($ in Thousands) | ||||
2021 | $ | 1,371,671 | |||
2022 | 236,667 | ||||
2023 | 77,545 | ||||
2024 | 45,185 | ||||
2025 | 25,951 | ||||
Thereafter | 11 | ||||
Total | $ | 1,757,030 |
($ in Thousands) | December 31, 2020 | December 31, 2019 | ||||||
Short-Term Funding | ||||||||
Federal funds purchased | $ | 7,070 | $ | 362,000 | ||||
Securities sold under agreements to repurchase | 185,901 | 71,097 | ||||||
Federal funds purchased and securities sold under agreements to repurchase | 192,971 | 433,097 | ||||||
Commercial paper | 59,346 | 32,016 | ||||||
Total short-term funding | $ | 252,317 | $ | 465,113 | ||||
Long-Term Funding | ||||||||
Bank senior notes, at par, due 2021 | $ | 300,000 | $ | 300,000 | ||||
Corporation subordinated notes, at par, due 2025 | 250,000 | 250,000 | ||||||
Finance leases | 1,128 | 2,209 | ||||||
Capitalized costs | (1,663) | (2,866) | ||||||
Total long-term funding | 549,465 | 549,343 | ||||||
Total short and long-term funding, excluding FHLB advances
|
$ | 801,782 | $ | 1,014,456 | ||||
FHLB Advances | ||||||||
Short-term FHLB advances | $ | — | $ | 520,000 | ||||
Long-term FHLB advances | 1,632,723 | 2,660,967 | ||||||
Total FHLB advances | $ | 1,632,723 | $ | 3,180,967 | ||||
Total short and long-term funding
|
$ | 2,434,505 | $ | 4,195,422 |
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, 2020 | |||||||||||||||||
Repurchase agreements | |||||||||||||||||
Agency mortgage-related securities
|
$ | 185,901 | $ | — | $ | — | $ | — | $ | 185,901 | |||||||
Total | $ | 185,901 | $ | — | $ | — | $ | — | $ | 185,901 | |||||||
December 31, 2019 | |||||||||||||||||
Repurchase agreements | |||||||||||||||||
Agency mortgage-related securities
|
$ | 71,097 | $ | — | $ | — | $ | — | $ | 71,097 | |||||||
Total | $ | 71,097 | $ | — | $ | — | $ | — | $ | 71,097 |
2020 | 2019 | 2018 | |||||||||
Dividend yield | 3.50 | % | 3.30 | % | 2.50 | % | |||||
Risk-free interest rate | 1.60 | % | 2.60 | % | 2.60 | % | |||||
Weighted average expected volatility | 21.00 | % | 24.00 | % | 22.00 | % | |||||
Weighted average expected life | 5.75 years | 5.75 years | 5.75 years | ||||||||
Weighted average per share fair value of options | $2.39 | $4.00 | $4.47 |
Stock Options |
Shares(a)
|
Weighted Average
Exercise Price |
Weighted Average
Remaining Contractual Term |
Aggregate
Intrinsic Value ($ in thousands) |
||||||||||
Outstanding at December 31, 2019 | 5,543 | $ | 20.13 | 6.25 years | $ | 16,043 | ||||||||
Granted | 1,697 | 18.43 | ||||||||||||
Exercised | (182) | 13.77 | ||||||||||||
Forfeited or expired | (585) | 21.07 | ||||||||||||
Outstanding at December 31, 2020 | 6,473 | $ | 19.77 | 6.23 years | $ | 2,005 | ||||||||
Options exercisable at December 31, 2020 | 4,038 | $ | 19.25 | 4.89 years | $ | 1,913 | ||||||||
Restricted Stock |
Shares(a)
|
Weighted Average
Grant Date Fair Value |
||||||
Outstanding at December 31, 2019 | 2,393 | $ | 22.39 | |||||
Granted | 1,053 | 18.09 | ||||||
Vested | (936) | 22.59 | ||||||
Forfeited | (218) | 20.86 | ||||||
Outstanding at December 31, 2020 | 2,293 | $ | 20.46 |
RAP |
Postretirement
Plan |
RAP |
Postretirement
Plan |
|||||||||||
($ in Thousands) | 2020 | 2020 | 2019 | 2019 | ||||||||||
Change in Fair Value of Plan Assets | ||||||||||||||
Fair value of plan assets at beginning of year | $ | 442,034 | $ | — | $ | 390,564 | $ | — | ||||||
Actual return on plan assets | 58,802 | — | 67,377 | — | ||||||||||
Employer contributions | — | 210 | — | 270 | ||||||||||
Gross benefits paid | (21,987) | (210) | (15,907) | (270) | ||||||||||
Fair value of plan assets at end of year(a)
|
$ | 478,849 | $ | — | $ | 442,034 | $ | — | ||||||
Change in Benefit Obligation | ||||||||||||||
Net benefit obligation at beginning of year | $ | 260,576 | $ | 2,545 | $ | 233,658 | $ | 2,523 | ||||||
Service cost | 8,244 | — | 7,263 | — | ||||||||||
Interest cost | 8,185 | 78 | 9,752 | 104 | ||||||||||
Actuarial (gain) loss | 24,998 | (169) | 25,810 | 188 | ||||||||||
Gross benefits paid | (21,987) | (210) | (15,907) | (270) | ||||||||||
Net benefit obligation at end of year(a)
|
$ | 280,017 | $ | 2,243 | $ | 260,576 | $ | 2,545 | ||||||
Funded (unfunded) status | $ | 198,832 | $ | (2,243) | $ | 181,458 | $ | (2,545) | ||||||
Noncurrent assets | $ | 198,832 | $ | — | $ | 181,458 | $ | — | ||||||
Current liabilities | — | (189) | — | (214) | ||||||||||
Noncurrent liabilities | — | (2,055) | — | (2,330) | ||||||||||
Asset (liability) recognized on the consolidated balance sheets | $ | 198,832 | $ | (2,243) | $ | 181,458 | $ | (2,545) |
RAP |
Postretirement
Plan |
RAP |
Postretirement
Plan |
|||||||||||
($ in Thousands) | 2020 | 2020 | 2019 | 2019 | ||||||||||
Prior service cost | $ | (194) | $ | (477) | $ | (249) | $ | (533) | ||||||
Net actuarial loss | 28,029 | — | 37,075 | 126 | ||||||||||
Amount not yet recognized in net periodic benefit cost, but recognized in accumulated other comprehensive (income) loss | $ | 27,835 | $ | (477) | $ | 36,827 | $ | (406) |
RAP |
Postretirement
Plan |
RAP |
Postretirement
Plan |
|||||||||||
($ in Thousands) | 2020 | 2020 | 2019 | 2019 | ||||||||||
Net actuarial gain (loss) | $ | 8,209 | $ | 169 | $ | 17,235 | $ | (188) | ||||||
Amortization of prior service cost | (73) | (75) | (73) | (75) | ||||||||||
Amortization of actuarial loss (gain) | 3,897 | — | 480 | (4) | ||||||||||
Income tax (expense) benefit | (3,040) | (23) | (4,532) | 67 | ||||||||||
Total Recognized in OCI | $ | 8,993 | $ | 71 | $ | 13,109 | $ | (200) |
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Service cost | $ | 8,244 | $ | 7,263 | $ | 7,540 | |||||
Interest cost | 8,185 | 9,752 | 9,125 | ||||||||
Expected return on plan assets | (25,595) | (24,332) | (23,195) | ||||||||
Amortization of prior service cost | (73) | (73) | (73) | ||||||||
Amortization of actuarial loss (gain) | 3,897 | 480 | 2,195 | ||||||||
Recognized settlement loss (gain) | — | — | 809 | ||||||||
Total net periodic pension cost (income) | $ | (5,342) | $ | (6,910) | $ | (3,600) |
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Interest cost | $ | 78 | $ | 104 | $ | 108 | |||||
Amortization of prior service cost | (75) | (75) | (75) | ||||||||
Amortization of actuarial loss (gain) | — | (4) | 8 | ||||||||
Total net periodic benefit cost | $ | 3 | $ | 25 | $ | 41 |
RAP |
Postretirement
Plan |
RAP |
Postretirement
Plan |
|||||||||||
2020 | 2020 | 2019 | 2019 | |||||||||||
Weighted average assumptions used to determine benefit obligations | ||||||||||||||
Discount rate | 2.40 | % | 2.40 | % | 3.20 | % | 3.20 | % | ||||||
Rate of increase in compensation levels | 2.00 | % | N/A | 2.00 | % | N/A | ||||||||
Weighted average assumptions used to determine net periodic benefit costs | ||||||||||||||
Discount rate
|
3.20 | % | 3.20 | % | 4.30 | % | 4.30 | % | ||||||
Rate of increase in compensation levels | 2.00 | % | N/A | 3.00 | % | N/A | ||||||||
Expected long-term rate of return on plan assets
|
6.20 | % | N/A | 6.00 | % | N/A |
Asset Category | 2020 | 2019 | ||||||
Equity securities | 53 | % | 51 | % | ||||
Fixed-income securities | 33 | % | 33 | % | ||||
Group annuity contracts | 11 | % | 11 | % | ||||
Alternative securities | 1 | % | 3 | % | ||||
Other | 2 | % | 2 | % | ||||
Total | 100 | % | 100 | % |
Fair Value Measurements Using | ||||||||||||||
($ in Thousands) | December 31, 2020 | Level 1 | Level 2 | Level 3 | ||||||||||
RAP Investments | ||||||||||||||
Money market account | $ | 9,429 | $ | 9,429 | $ | — | $ | — | ||||||
Common /collective trust funds | 172,950 | 172,950 | — | — | ||||||||||
Mutual funds | 245,605 | 245,605 | — | — | ||||||||||
Group annuity contracts | 50,866 | — | — | 50,866 | ||||||||||
Total RAP Investments | $ | 478,849 | $ | 427,983 | $ | — | $ | 50,866 | ||||||
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 Reconciliation of Level 3 RAP Investments | 2020 | 2019 | ||||||
Fair value of group annuity contract at beginning of period | $ | 50,055 | $ | 47,265 | ||||
Return on plan assets | 3,499 | 5,495 | ||||||
Benefits paid | (2,688) | (2,704) | ||||||
Fair value of group annuity contract at end of period | $ | 50,866 | $ | 50,055 |
($ in Thousands) | RAP | Postretirement Plan | ||||||
Estimated future benefit payments | ||||||||
2021 | $ | 19,332 | $ | 191 | ||||
2022 | 20,043 | 186 | ||||||
2023 | 19,785 | 181 | ||||||
2024 | 20,304 | 175 | ||||||
2025 | 21,766 | 168 | ||||||
2026-2030 | 91,228 | 732 |
2020 | 2019 | |||||||||||||
($ in Thousands) | 100 bp Increase | 100 bp Decrease | 100 bp Increase | 100 bp Decrease | ||||||||||
Effect on total of service and interest cost | $ | 5 | $ | (4) | $ | 7 | $ | (6) | ||||||
Effect on postretirement benefit obligation | $ | 141 | $ | (124) | $ | 170 | $ | (148) |
Years Ended December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Current | |||||||||||
Federal | $ | 33,020 | $ | 50,560 | $ | 20,246 | |||||
State | 16,193 | 15,327 | 12,593 | ||||||||
Total current | 49,213 | 65,887 | 32,839 | ||||||||
Deferred | |||||||||||
Federal | (25,895) | 14,094 | 34,941 | ||||||||
State | (3,118) | (261) | 12,006 | ||||||||
Total deferred | (29,013) | 13,833 | 46,947 | ||||||||
Total income tax expense | $ | 20,200 | $ | 79,720 | $ | 79,786 |
($ in Thousands) | 2020 | 2019 | ||||||
Deferred tax assets | ||||||||
Allowance for loan losses | $ | 88,967 | $ | 48,790 | ||||
Allowance for other losses | 16,347 | 7,236 | ||||||
Accrued liabilities | 4,673 | 4,005 | ||||||
Deferred compensation | 27,896 | 28,018 | ||||||
Benefit of tax loss and credit carryforwards | 9,789 | 13,444 | ||||||
Nonaccrual interest | 1,763 | 1,299 | ||||||
Basis difference from equity securities and other investments | 6,329 | — | ||||||
Net unrealized losses on pension and postretirement benefits | 9,110 | 12,174 | ||||||
Other | 997 | 970 | ||||||
Total deferred tax assets | $ | 165,871 | $ | 115,936 | ||||
Valuation allowance for deferred tax assets | (251) | (251) | ||||||
Total deferred tax assets after valuation allowance | $ | 165,620 | $ | 115,685 | ||||
Deferred tax liabilities | ||||||||
Prepaid expenses | $ | 63,113 | $ | 62,227 | ||||
Goodwill | 21,698 | 21,099 | ||||||
Mortgage banking activities | 10,403 | 17,418 | ||||||
Deferred loan fee income | 9,799 | 12,190 | ||||||
State deferred taxes | 2,636 | 722 | ||||||
Lease financing | 116 | 199 | ||||||
Bank premises and equipment | 17,757 | 18,348 | ||||||
Purchase accounting | 12,658 | 13,738 | ||||||
Basis difference from equity securities and other investments | — | 2,285 | ||||||
Net unrealized gains on AFS securities | 13,568 | 1,139 | ||||||
Other | 1,049 | 1,156 | ||||||
Total deferred tax liabilities | $ | 152,797 | $ | 150,521 | ||||
Net deferred tax assets (liabilities) | $ | 12,823 | $ | (34,836) |
($ in Thousands) | 2020 | 2019 | ||||||
Valuation allowance for deferred tax assets, beginning of year | $ | (251) | $ | (251) | ||||
(Increase) decrease in current year | — | — | ||||||
Valuation allowance for deferred tax assets, end of year | $ | (251) | $ | (251) |
2020 | 2019 | 2018 | |||||||||
Federal income tax rate at statutory rate | 21.0 % | 21.0 % | 21.0 % | ||||||||
Increases (decreases) resulting from: | |||||||||||
Tax-exempt interest and dividends | (3.9) | % | (3.3) | % | (2.6) | % | |||||
State income taxes (net of federal benefit) | 3.7 % | 3.5 % | 3.7 % | ||||||||
Bank owned life insurance | (0.9) | % | (0.8) | % | (0.7) | % | |||||
Tax effect of tax credits and benefits, net of related expenses | (1.8) | % | (0.9) | % | (0.7) | % | |||||
Tax reserve adjustments / settlements | 0.1 % | 0.2 % | 1.5 % | ||||||||
Net tax (benefit) expense from stock-based compensation | 0.3 % | (0.2) | % | (0.5) | % | ||||||
Tax planning in response to the Tax Act | — | % | — | % | (3.6) | % | |||||
Restructuring in conjunction with ABRC sale | (13.7) | % | — | % | — | % | |||||
FDIC premium | 0.8 % | 0.5 % | 0.9 % | ||||||||
Other | 0.6 % | (0.4) | % | 0.3 % | |||||||
Effective income tax rate | 6.2 | % | 19.6 | % | 19.3 % |
($ in Millions) | 2020 | 2019 | ||||||
Balance at beginning of year | $ | 3 | $ | 2 | ||||
Additions for tax positions related to current year | — | 1 | ||||||
Balance at end of year | $ | 3 | $ | 3 |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
Asset | Liability | Asset | Liability | |||||||||||||||||||||||||||||
($ in Thousands) | Notional Amount |
Fair
Value |
Notional Amount |
Fair
Value |
Notional Amount |
Fair
Value |
Notional Amount |
Fair
Value |
||||||||||||||||||||||||
Not designated as hedging instruments | ||||||||||||||||||||||||||||||||
Interest rate-related instruments | $ | 3,639,679 | $ | 192,518 | $ | 3,639,679 | $ | 25,680 | $ | 3,029,877 | $ | 77,024 | $ | 3,029,877 | $ | 13,073 | ||||||||||||||||
Foreign currency exchange forwards | 411,292 | 4,909 | 398,890 | 4,836 | 272,636 | 4,226 | 264,653 | 4,048 | ||||||||||||||||||||||||
Commodity contracts | 87,547 | 12,486 | 83,214 | 11,155 | 255,089 | 20,528 | 255,165 | 19,624 | ||||||||||||||||||||||||
Mortgage banking(a)
|
226,818 | 9,624 | 335,500 | 2,046 | 255,291 | 2,527 | 263,000 | 710 | ||||||||||||||||||||||||
Gross derivatives before netting | $ | 219,537 | $ | 43,716 | $ | 104,305 | $ | 37,455 | ||||||||||||||||||||||||
Less: Legally enforceable master netting agreements | 1,936 | 1,936 | 10,410 | 10,410 | ||||||||||||||||||||||||||||
Less: Cash collateral pledged/received | 10,879 | 25,625 | 1,408 | 11,365 | ||||||||||||||||||||||||||||
Total derivative instruments, after netting | $ | 206,722 | $ | 16,155 | $ | 92,487 | $ | 15,680 |
Consolidated Statements of Income Category of
Gain / (Loss) Recognized in Income |
For the Year Ended December 31, | ||||||||||
($ in Thousands) | 2020 | 2019 | |||||||||
Derivative Instruments | |||||||||||
Interest rate-related instruments — customer and mirror, net | Capital market fees, net | $ | (1,758) | $ | (1,393) | ||||||
Interest rate lock commitments (mortgage) | Mortgage banking, net | 7,097 | 319 | ||||||||
Forward commitments (mortgage) | Mortgage banking, net | 1,335 | 1,362 | ||||||||
Foreign currency exchange forwards | Capital market fees, net | (105) | 132 | ||||||||
Commodity contracts | Capital market fees, net | 427 | (1,763) |
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
|
|||||||||||||||||||||||||||||||||||
December 31, 2020 | $ | 13,441 | $ | (1,936) | $ | (10,879) | $ | 626 | $ | — | $ | 626 | |||||||||||||||||||||||
December 31, 2019 | 11,864 | (10,410) | (1,408) | 45 | — | 45 | |||||||||||||||||||||||||||||
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
|
|||||||||||||||||||||||||||||||||||
December 31, 2020 | $ | 27,951 | $ | (1,936) | $ | (25,625) | $ | 390 | $ | — | $ | 390 | |||||||||||||||||||||||
December 31, 2019 | 22,189 | (10,410) | (11,365) | 413 | — | 413 |
($ in Thousands) | 2020 | 2019 | ||||||
Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale(a)(b)
|
$ | 10,010,492 | $ | 9,024,412 | ||||
Commercial letters of credit(a)
|
3,642 | 7,081 | ||||||
Standby letters of credit(c)
|
278,798 | 277,969 |
($ in Thousands) | Year Ended December 31, 2020 | Year Ended December 31, 2019 | |||||||||
Allowance for Unfunded Commitments | |||||||||||
Balance at beginning of period | $ | 21,907 | $ | 24,336 | |||||||
Cumulative effect of ASU 2016-13 adoption (CECL) | 18,690 | N/A | |||||||||
Balance at beginning of period, adjusted | 40,597 | 24,336 | |||||||||
Provision for unfunded commitments | 7,000 | (2,500) | |||||||||
Amount recorded at acquisition | 179 | 70 | |||||||||
Balance at end of period | $ | 47,776 | $ | 21,907 |
December 31, | ||||||||
($ in Thousands) | 2020 | 2019 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 40,204 | $ | 17,427 | ||||
Interest-bearing deposits in other financial institutions | 15,228 | 27,186 | ||||||
Notes and interest receivable from subsidiaries | 305,779 | 201,551 | ||||||
Investments in and receivable due from subsidiaries | 4,005,198 | 3,925,596 | ||||||
Other assets | 46,850 | 46,234 | ||||||
Total assets | $ | 4,413,259 | $ | 4,217,994 | ||||
Liabilities and Stockholders' Equity | ||||||||
Commercial paper | $ | 59,346 | $ | 32,016 | ||||
Subordinated notes, at par | 250,000 | 250,000 | ||||||
Long-term funding capitalized costs | (1,133) | (1,428) | ||||||
Total long-term funding | 248,867 | 248,572 | ||||||
Accrued expenses and other liabilities | 14,113 | 15,282 | ||||||
Total liabilities | 322,326 | 295,870 | ||||||
Preferred equity | 353,512 | 256,716 | ||||||
Common equity | 3,737,421 | 3,665,407 | ||||||
Total stockholders’ equity | 4,090,933 | 3,922,124 | ||||||
Total liabilities and stockholders’ equity | $ | 4,413,259 | $ | 4,217,994 |
For the Years Ended December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Income | |||||||||||
Income from subsidiaries | $ | 317,895 | $ | 341,789 | $ | 354,637 | |||||
Interest income on notes receivable from subsidiaries | 3,257 | 13,983 | 12,199 | ||||||||
Other income | 933 | 761 | 994 | ||||||||
Total income | 322,084 | 356,532 | 367,830 | ||||||||
Expense | |||||||||||
Interest expense on short and long-term funding | 10,960 | 16,802 | 18,355 | ||||||||
Other expense | 6,422 | 6,583 | 11,736 | ||||||||
Total expense | 17,383 | 23,384 | 30,091 | ||||||||
Income before income tax expense | 304,702 | 333,148 | 337,739 | ||||||||
Income tax expense (benefit) | (2,070) | 6,359 | 4,176 | ||||||||
Net income | 306,771 | 326,790 | 333,562 | ||||||||
Preferred stock dividends | 18,358 | 15,202 | 10,784 | ||||||||
Net income available to common equity | $ | 288,413 | $ | 311,587 | $ | 322,779 |
For the Years Ended December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | $ | 306,771 | $ | 326,790 | $ | 333,562 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
(Increase) decrease in equity in undistributed net income (loss) of subsidiaries | (61,406) | (21,789) | (18,636) | ||||||||
Net change in other assets and accrued expenses and other liabilities | (49,890) | 265 | (92,366) | ||||||||
Net cash provided by operating activities | 195,475 | 305,266 | 222,562 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Proceeds from sales of investment securities | — | — | 827 | ||||||||
Net (increase) decrease in notes receivable from subsidiaries | (105,000) | 250,000 | (139,317) | ||||||||
Net (increase) decrease in loans | — | — | 2,210 | ||||||||
Net cash provided by (used in) investing activities | (105,000) | 250,000 | (136,280) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Net increase (decrease) in commercial paper | 27,330 | (13,406) | (22,044) | ||||||||
Redemption of Corporation's senior notes | — | (250,000) | — | ||||||||
Proceeds from issuance of common stock for stock-based compensation plans | 3,966 | 11,216 | 18,408 | ||||||||
Proceeds from issuance of preferred stock | 96,796 | — | 97,315 | ||||||||
Purchase of preferred stock | — | — | (537) | ||||||||
Common stock warrants exercised | — | — | (1) | ||||||||
Purchase of common stock returned to authorized but unissued | — | — | (33,075) | ||||||||
Issuance of treasury stock for acquisition | — | — | 91,296 | ||||||||
Purchase of treasury stock, open market purchases | (71,255) | (177,484) | (206,450) | ||||||||
Purchase of treasury stock, stock-based compensation plans | (6,113) | (8,592) | (7,148) | ||||||||
Cash dividends on common stock | (112,023) | (111,804) | (105,519) | ||||||||
Cash dividends on preferred stock | (18,358) | (15,202) | (10,784) | ||||||||
Net cash used in financing activities | (79,656) | (565,272) | (178,540) | ||||||||
Net increase (decrease) in cash and cash equivalents | 10,819 | (10,006) | (92,258) | ||||||||
Cash and cash equivalents at beginning of year | 44,613 | 54,619 | 146,877 | ||||||||
Cash and cash equivalents at end of year | $ | 55,432 | $ | 44,613 | $ | 54,619 |
($ in Thousands) | Fair Value Hierarchy | December 31, 2020 | December 31, 2019 | ||||||||
Assets | |||||||||||
Investment securities AFS | |||||||||||
U.S. Treasury securities | Level 1 | $ | 26,531 | $ | — | ||||||
Agency securities | Level 2 | 25,038 | — | ||||||||
Obligations of state and political subdivisions (municipal securities) | Level 2 | 450,662 | 546,160 | ||||||||
Residential mortgage-related securities | |||||||||||
FNMA / FHLMC | Level 2 | 1,461,241 | 132,660 | ||||||||
GNMA | Level 2 | 235,537 | 985,139 | ||||||||
Commercial mortgage-related securities | |||||||||||
FNMA / FHLMC | Level 2 | 22,904 | 21,728 | ||||||||
GNMA | Level 2 | 524,756 | 1,310,207 | ||||||||
Asset backed securities | |||||||||||
FFELP | Level 2 | 327,189 | 263,693 | ||||||||
SBA | Level 2 | 8,584 | — | ||||||||
Other debt securities | Level 2 | 3,000 | 3,000 | ||||||||
Total investment securities AFS | Level 1 | $ | 26,531 | $ | — | ||||||
Total investment securities AFS | Level 2 | 3,058,910 | 3,262,586 | ||||||||
Equity securities with readily determinable fair values | Level 1 | 1,661 | 1,646 | ||||||||
Residential loans held for sale
|
Level 2 | 129,158 | 136,280 | ||||||||
Interest rate-related instruments(a)
|
Level 2 | 192,518 | 77,024 | ||||||||
Foreign currency exchange forwards(a)
|
Level 2 | 4,909 | 4,226 | ||||||||
Commodity contracts(a)
|
Level 2 | 12,486 | 20,528 | ||||||||
Interest rate lock commitments to originate residential mortgage loans held for sale | Level 3 | 9,624 | 2,527 | ||||||||
Liabilities | |||||||||||
Interest rate-related instruments(a)
|
Level 2 | $ | 25,680 | $ | 13,073 | ||||||
Foreign currency exchange forwards(a)
|
Level 2 | 4,836 | 4,048 | ||||||||
Commodity contracts(a)
|
Level 2 | 11,155 | 19,624 | ||||||||
Forward commitments to sell residential mortgage loans | Level 3 | 2,046 | 710 |
($ in Thousands) | Interest rate lock commitments to originate residential mortgage loans held for sale | Forward commitments to sell residential mortgage loans | Total | ||||||||
Balance December 31, 2018 | $ | 2,208 | $ | 2,072 | $ | 140 | |||||
New production | 24,164 | (2,367) | 26,531 | ||||||||
Closed loans / settlements | (29,375) | (5,968) | (23,407) | ||||||||
Other | 5,530 | 6,973 | (1,443) | ||||||||
Mortgage derivative gain (loss) | 319 | (1,362) | 1,681 | ||||||||
Balance December 31, 2019 | $ | 2,527 | $ | 710 | $ | 1,817 | |||||
New production | $ | 72,659 | $ | (3,505) | $ | 76,164 | |||||
Closed loans / settlements | (76,001) | (12,587) | (63,414) | ||||||||
Other | 10,439 | 17,427 | (6,988) | ||||||||
Mortgage derivative gain (loss) | 7,097 | 1,335 | 5,762 | ||||||||
Balance December 31, 2020 | $ | 9,624 | $ | 2,046 | $ | 7,579 |
($ in Thousands) | |||||
Equity securities without readily determinable fair values | |||||
Carrying value as of December 31, 2019 | $ | 13,444 | |||
Carrying value changes | — | ||||
Carrying value as of December 31, 2020 | $ | 13,444 | |||
Cumulative upward carrying value changes between January 1, 2018 and December 31, 2020 | $ | 13,444 | |||
Cumulative downward carrying value changes between January 1, 2018 and December 31, 2020 | $ | — |
($ 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, 2020 | ||||||||||||||
Assets | ||||||||||||||
Individually evaluated loans(a)
|
Level 3 | $ | 138,752 | Provision for credit losses | $ | (97,519) | ||||||||
OREO(b)
|
Level 2 | 6,125 | Other noninterest expense | (3,747) | ||||||||||
Mortgage servicing rights | Level 3 | 41,990 | Mortgage banking, net | (17,704) | ||||||||||
December 31, 2019 | ||||||||||||||
Assets | ||||||||||||||
Impaired loans(c)
|
Level 3 | $ | 45,792 |
Provision for credit losses(d)
|
$ | (66,172) | ||||||||
OREO(b)
|
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, 2020 | Valuation Technique | Significant Unobservable Input | Range of Inputs | Weighted Average Input Applied | ||||||||||||||||
Mortgage servicing rights | Discounted cash flow | Discount rate | 9% | - | 14% | 9% | ||||||||||||||
Mortgage servicing rights | Discounted cash flow | Constant prepayment rate | 8% | - | 47% | 20% | ||||||||||||||
Individually evaluated loans | Appraisals / Discounted cash flow | Collateral / Discount factor | 0% | - | 40% | 34% |
December 31, 2020 | December 31, 2019 | ||||||||||||||||
($ in Thousands) | Fair Value Hierarchy Level | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Financial assets | |||||||||||||||||
Cash and due from banks | Level 1 | $ | 416,154 | $ | 416,154 | $ | 373,380 | $ | 373,380 | ||||||||
Interest-bearing deposits in other financial institutions | Level 1 | 298,759 | 298,759 | 207,624 | 207,624 | ||||||||||||
Federal funds sold and securities purchased under agreements to resell | Level 1 | 1,135 | 1,135 | 7,740 | 7,740 | ||||||||||||
Investment securities HTM, net | Level 1 | 999 | 1,024 | 999 | 1,018 | ||||||||||||
Investment securities HTM, net | Level 2 | 1,877,939 | 2,027,852 | 2,204,084 | 2,275,447 | ||||||||||||
Investment securities AFS | Level 1 | 26,531 | 26,531 | — | — | ||||||||||||
Investment securities AFS | Level 2 | 3,058,910 | 3,058,910 | 3,262,586 | 3,262,586 | ||||||||||||
Equity securities with readily determinable fair values | Level 1 | 1,661 | 1,661 | 1,646 | 1,646 | ||||||||||||
Equity securities without readily determinable fair values | Level 3 | 13,444 | 13,444 | 13,444 | 13,444 | ||||||||||||
FHLB and Federal Reserve Bank stocks | Level 2 | 168,280 | 168,280 | 227,347 | 227,347 | ||||||||||||
Residential loans held for sale | Level 2 | 129,158 | 129,158 | 136,280 | 136,280 | ||||||||||||
Commercial loans held for sale | Level 2 | — | — | 15,000 | 15,000 | ||||||||||||
Loans, net | Level 3 | 24,068,022 | 24,012,738 | 22,620,068 | 22,399,621 | ||||||||||||
Bank and corporate owned life insurance | Level 2 | 679,647 | 679,647 | 671,948 | 671,948 | ||||||||||||
Derivatives (other assets)(a)
|
Level 2 | 209,913 | 209,913 | 101,778 | 101,778 | ||||||||||||
Interest rate lock commitments to originate residential mortgage loans held for sale (other assets) | Level 3 | 9,624 | 9,624 | 2,527 | 2,527 | ||||||||||||
Financial liabilities | |||||||||||||||||
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts | Level 3 | $ | 24,725,451 | $ | 24,725,451 | $ | 21,156,261 | $ | 21,156,261 | ||||||||
Brokered CDs and other time deposits(b)
|
Level 2 | 1,757,030 | 1,766,200 | 2,622,803 | 2,622,803 | ||||||||||||
Short-term funding(c)
|
Level 2 | 252,317 | 252,303 | 465,113 | 465,113 | ||||||||||||
FHLB advances | Level 2 | 1,632,723 | 1,760,727 | 3,180,967 | 3,207,793 | ||||||||||||
Other long-term funding | Level 2 | 549,465 | 578,233 | 549,343 | 572,873 | ||||||||||||
Standby letters of credit(d)
|
Level 2 | 2,731 | 2,731 | 2,710 | 2,710 | ||||||||||||
Derivatives (accrued expenses and other liabilities)(a)
|
Level 2 | 41,671 | 41,671 | 36,745 | 36,745 | ||||||||||||
Forward commitments to sell residential mortgage loans (accrued expenses and other liabilities) | Level 3 | 2,046 | 2,046 | 710 | 710 |
Actual |
For Capital Adequacy
Purposes |
To Be Well Capitalized
Under Prompt Corrective
Action Provisions(a)
|
||||||||||||||||||||||||
($ in Thousands) | Amount |
Ratio(a)
|
Amount |
Ratio
|
Amount |
Ratio
|
||||||||||||||||||||
As of December 31 , 2020 | ||||||||||||||||||||||||||
Associated Banc-Corp | ||||||||||||||||||||||||||
Total capital | $ | 3,632,807 | 14.02 | % | $ | 2,072,273 | ≥ | 8.00 | % | |||||||||||||||||
Tier 1 capital | 3,058,809 | 11.81 | % | 1,554,205 | ≥ | 6.00 | % | |||||||||||||||||||
Common equity Tier 1 capital | 2,706,010 | 10.45 | % | 1,165,654 | ≥ | 4.50 | % | |||||||||||||||||||
Leverage | 3,058,809 | 9.37 | % | 1,305,604 | ≥ | 4.00 | % | |||||||||||||||||||
Associated Bank, N.A. | ||||||||||||||||||||||||||
Total capital | $ | 3,295,823 | 12.74 | % | $ | 2,068,801 | ≥ | 8.00 | % | $ | 2,586,002 | ≥ | 10.00 | % | ||||||||||||
Tier 1 capital | 2,971,234 | 11.49 | % | 1,551,601 | ≥ | 6.00 | % | 2,068,801 | ≥ | 8.00 | % | |||||||||||||||
Common equity Tier 1 capital | 2,971,234 | 11.49 | % | 1,163,701 | ≥ | 4.50 | % | 1,680,901 | ≥ | 6.50 | % | |||||||||||||||
Leverage | 2,971,234 | 9.11 | % | 1,304,448 | ≥ | 4.00 | % | 1,630,560 | ≥ | 5.00 | % | |||||||||||||||
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 | % |
For the Years Ended December 31, | |||||||||||||||||
($ in Thousands, except per share data) | 2020 | 2019 | 2018 | ||||||||||||||
Net income | $ | 306,771 | $ | 326,790 | $ | 333,562 | |||||||||||
Preferred stock dividends | (18,358) | (15,202) | (10,784) | ||||||||||||||
Net income available to common equity | 288,413 | 311,587 | 322,779 | ||||||||||||||
Common shareholder dividends | (111,291) | (111,091) | (104,981) | ||||||||||||||
Unvested share-based payment awards | (732) | (713) | (537) | ||||||||||||||
Undistributed earnings | 176,390 | 199,784 | 217,260 | ||||||||||||||
Undistributed earnings allocated to common shareholders | 175,134 | 198,424 | 216,199 | ||||||||||||||
Undistributed earnings allocated to unvested share-based payment awards | 1,256 | 1,360 | 1,060 | ||||||||||||||
Undistributed earnings | $ | 176,390 | $ | 199,784 | $ | 217,260 | |||||||||||
Basic | |||||||||||||||||
Distributed earnings to common shareholders | $ | 111,291 | $ | 111,091 | $ | 104,981 | |||||||||||
Undistributed earnings allocated to common shareholders | 175,134 | 198,424 | 216,199 | ||||||||||||||
Total common shareholders earnings, basic | $ | 286,425 | $ | 309,514 | $ | 321,181 | |||||||||||
Diluted | |||||||||||||||||
Distributed earnings to common shareholders | $ | 111,291 | $ | 111,091 | $ | 104,981 | |||||||||||
Undistributed earnings allocated to common shareholders | 175,134 | 198,424 | 216,199 | ||||||||||||||
Total common shareholders earnings, diluted | $ | 286,425 | $ | 309,514 | $ | 321,181 | |||||||||||
Weighted average common shares outstanding | $ | 153,005 | $ | 160,534 | $ | 167,345 | |||||||||||
Effect of dilutive common stock awards | 637 | 1,398 | 1,985 | ||||||||||||||
Effect of dilutive common stock warrants | — | — | 402 | ||||||||||||||
Diluted weighted average common shares outstanding | $ | 153,642 | $ | 161,932 | $ | 169,732 | |||||||||||
Basic earnings per common share | $ | 1.87 | $ | 1.93 | $ | 1.92 | |||||||||||
Diluted earnings per common share | $ | 1.86 | $ | 1.91 | $ | 1.89 |
($ in Thousands) |
Investment
Securities AFS |
Defined Benefit
Pension and Postretirement Obligations |
Accumulated
Other Comprehensive Income (Loss) |
||||||||
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) | |||||
Other comprehensive income (loss) before reclassifications | $ | 55,628 | $ | 7,780 | $ | 63,408 | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||
Investment securities losses (gains), net | (9,222) | — | (9,222) | ||||||||
Personnel expense | — | (148) | (148) | ||||||||
Other expense | — | 3,897 | 3,897 | ||||||||
Interest income | 3,359 | — | 3,359 | ||||||||
Income tax (expense) benefit | (12,429) | (3,064) | (15,493) | ||||||||
Net other comprehensive income (loss) during period | 37,336 | 8,465 | 45,801 | ||||||||
Balance, December 31, 2020 | $ | 41,325 | $ | (28,707) | $ | 12,618 |
Corporate and Commercial Specialty | |||||||||||
For the Years Ended December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Net interest income | $ | 395,135 | $ | 447,979 | $ | 458,240 | |||||
Net intersegment interest income (expense) | 10,400 | (52,200) | (33,519) | ||||||||
Segment net interest income | 405,535 | 395,779 | 424,721 | ||||||||
Noninterest income | 149,456 | 136,097 | 132,071 | ||||||||
Total revenue | 554,991 | 531,876 | 556,793 | ||||||||
Provision for credit losses | 59,780 | 49,341 | 42,234 | ||||||||
Noninterest expense | 209,507 | 233,655 | 233,202 | ||||||||
Income (loss) before income taxes | 285,705 | 248,879 | 281,356 | ||||||||
Income tax expense (benefit) | 53,193 | 47,480 | 54,732 | ||||||||
Net income | $ | 232,512 | $ | 201,399 | $ | 226,625 | |||||
Allocated goodwill | $ | 530,144 | $ | 530,144 | $ | 528,832 |
Community, Consumer, and Business | |||||||||||
For the Years Ended December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Net interest income | $ | 295,297 | $ | 301,563 | $ | 322,020 | |||||
Net intersegment interest income (expense) | 54,203 | 93,331 | 76,876 | ||||||||
Segment net interest income | 349,500 | 394,894 | 398,896 | ||||||||
Noninterest income | 185,737 | 223,712 | 212,711 | ||||||||
Total revenue | 535,237 | 618,606 | 611,607 | ||||||||
Provision for credit losses | 21,862 | 18,594 | 18,500 | ||||||||
Noninterest expense | 429,447 | 467,086 | 463,187 | ||||||||
Income (loss) before income taxes | 83,928 | 132,925 | 129,920 | ||||||||
Income tax expense (benefit) | 17,625 | 27,914 | 27,283 | ||||||||
Net income | $ | 66,303 | $ | 105,011 | $ | 102,637 | |||||
Allocated goodwill | $ | 579,156 | $ | 646,086 | $ | 640,191 |
Risk Management and Shared Services | |||||||||||
For the Years Ended December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Net interest income | $ | 72,525 | $ | 86,132 | $ | 99,320 | |||||
Net intersegment interest income (expense) | (64,603) | (41,130) | (43,357) | ||||||||
Segment net interest income | 7,922 | 45,001 | 55,963 | ||||||||
Noninterest income(a)
|
178,862 | 21,015 | 10,785 | ||||||||
Total revenue | 186,784 | 66,017 | 66,748 | ||||||||
Provision for credit losses | 92,365 | (51,935) | (60,734) | ||||||||
Noninterest expense(b)
|
137,080 | 93,247 | 125,410 | ||||||||
Income (loss) before income taxes | (42,661) | 24,705 | 2,073 | ||||||||
Income tax expense (benefit)(c)
|
(50,618) | 4,325 | (2,228) | ||||||||
Net income | $ | 7,957 | $ | 20,379 | $ | 4,301 | |||||
Allocated goodwill | $ | — | $ | — | $ | — |
Consolidated Total | |||||||||||
For the Years Ended December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Net interest income | $ | 762,957 | $ | 835,674 | $ | 879,580 | |||||
Net intersegment interest income (expense) | — | — | — | ||||||||
Segment net interest income | 762,957 | 835,674 | 879,580 | ||||||||
Noninterest income(a)
|
514,056 | 380,824 | 355,568 | ||||||||
Total revenue | 1,277,012 | 1,216,498 | 1,235,148 | ||||||||
Provision for credit losses | 174,006 | 16,000 | — | ||||||||
Noninterest expense(b)
|
776,034 | 793,988 | 821,799 | ||||||||
Income (loss) before income taxes | 326,972 | 406,509 | 413,349 | ||||||||
Income tax expense (benefit)(c)
|
20,200 | 79,720 | 79,786 | ||||||||
Net income | $ | 306,771 | $ | 326,790 | $ | 333,562 | |||||
Allocated goodwill | $ | 1,109,300 | $ | 1,176,230 | $ | 1,169,023 |
Corporate and Commercial Specialty | |||||||||||
For the Years Ended December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Wealth management fees(a)
|
$ | 83,570 | $ | 80,719 | $ | 79,685 | |||||
Service charges and deposit account fees | 16,903 | 13,342 | 15,424 | ||||||||
Card-based fees(b)
|
1,534 | 1,827 | 1,796 | ||||||||
Insurance commissions and fees | 208 | 364 | 349 | ||||||||
Other revenue | 3,462 | 1,647 | 997 | ||||||||
Noninterest Income (in-scope of Topic 606) | $ | 105,678 | $ | 97,899 | $ | 98,251 | |||||
Noninterest Income (out-of-scope of Topic 606) | 43,778 | 38,198 | 33,820 | ||||||||
Total Noninterest Income | $ | 149,456 | $ | 136,097 | $ | 132,071 | |||||
Community, Consumer, and Business | |||||||||||
For the Years Ended December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Wealth management fees(a)
|
$ | 1,387 | $ | 2,838 | $ | 2,655 | |||||
Service charges and deposit account fees | 39,371 | 49,744 | 50,582 | ||||||||
Card-based fees(b)
|
36,937 | 37,895 | 37,977 | ||||||||
Insurance commissions and fees | 45,027 | 88,727 | 89,123 | ||||||||
Other revenue | 19,053 | 9,462 | 9,887 | ||||||||
Noninterest Income (in-scope of Topic 606) | $ | 141,775 | $ | 188,666 | $ | 190,225 | |||||
Noninterest Income (out-of-scope of Topic 606) | 43,962 | 35,046 | 22,486 | ||||||||
Total Noninterest Income | $ | 185,737 | $ | 223,712 | $ | 212,711 | |||||
Risk Management and Share Services | |||||||||||
For the Years Ended December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Wealth management fees(a)
|
$ | — | $ | (90) | $ | 222 | |||||
Service charges and deposit account fees | 33 | 49 | 69 | ||||||||
Card-based fees(b)
|
134 | 190 | 37 | ||||||||
Insurance commissions and fees | 10 | 13 | 39 | ||||||||
Other revenue | (1,552) | 1,370 | 1,242 | ||||||||
Noninterest Income (in-scope of Topic 606) | $ | (1,375) | $ | 1,532 | $ | 1,609 | |||||
Noninterest Income (out-of-scope of Topic 606)(c)
|
180,237 | 19,483 | 9,176 | ||||||||
Total Noninterest Income | $ | 178,862 | $ | 21,015 | $ | 10,785 | |||||
Consolidated Total | |||||||||||
For the Years Ended December 31, | |||||||||||
($ in Thousands) | 2020 | 2019 | 2018 | ||||||||
Wealth management fees(a)
|
$ | 84,957 | $ | 83,467 | $ | 82,562 | |||||
Service charges and deposit account fees | 56,307 | 63,135 | 66,075 | ||||||||
Card-based fees(b)
|
38,605 | 39,912 | 39,810 | ||||||||
Insurance commissions and fees | 45,245 | 89,104 | 89,511 | ||||||||
Other revenue | 20,963 | 12,629 | 12,126 | ||||||||
Noninterest Income (in-scope of Topic 606) | $ | 246,077 | $ | 288,247 | $ | 290,084 | |||||
Noninterest Income (out-of-scope of Topic 606)(c)
|
267,979 | 92,577 | 65,484 | ||||||||
Total Noninterest Income | $ | 514,056 | $ | 380,824 | $ | 355,568 | |||||
Revenue Stream | Noninterest income in-scope of Topic 606 | |||||||
Service charges and deposit account fees | Service charges on deposit accounts consist of monthly service fees (i.e. business analyzed 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, 2020 |
(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 | 6,473,397 | $ | 19.77 | 14,426,779 | |||||||
Equity compensation plans not approved by security holders | — | — | — | ||||||||
Total | 6,473,397 | $ | 19.77 | 14,426,779 |
ITEM 13. | Certain Relationships and Related Transactions, and Director Independence |
ITEM 14. | Principal Accounting Fees and Services |
ITEM 15. | Exhibits and Financial Statement Schedules |
* | Management contracts and arrangements. |
ITEM 16. | Form 10-K Summary |
ASSOCIATED BANC-CORP | |||||||||||
Date: February 9, 2021 | 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 9, 2021 | ||||||||||||
Philip B. Flynn | ||||||||||||||
/s/ Christopher J. Del Moral-Niles |
Chief Financial Officer
(Principal Financial Officer) |
February 9, 2021 | ||||||||||||
Christopher J. Del Moral-Niles | ||||||||||||||
/s/ Tammy C. Stadler | Principal Accounting Officer | February 9, 2021 | ||||||||||||
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 9, 2021 | /s/ Philip B. Flynn | |||||||
Philip B. Flynn | ||||||||
President and Chief Executive Officer |
Date: February 9, 2021 | /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 9, 2021 |
/s/ Christopher J. Del Moral-Niles | |||||
Christopher J. Del Moral-Niles | |||||
Chief Financial Officer | |||||
February 9, 2021 |