☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Pennsylvania | 23-2195389 | |||||||
(State or other jurisdiction of Incorporation or organization) | (I.R.S. Employer Identification No.) |
One Penn Square | P. O. Box 4887 | Lancaster, | Pennsylvania | 17604 | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of exchange on which registered | ||||||||||||
Common Stock, $2.50 par value | FULT | The Nasdaq Stock Market, LLC | ||||||||||||
Depositary Shares, Each Representing 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A | FULTP | The Nasdaq Stock Market, LLC |
Securities registered pursuant to Section 12(g) of the Act: | ||
None |
Large accelerated filer | x | Accelerated filer | ¨ | Emerging growth company | ☐ | ||||||||||||
Non-accelerated filer | ¨ | Smaller reporting company | ☐ |
Description | Page | |||||||
PART I | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
Item 9C. | ||||||||
PART III | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
PART IV | ||||||||
Item 15. | ||||||||
Item 16. | ||||||||
FULTON FINANCIAL CORPORATION | ||||||||
GLOSSARY OF DEFINED ACRONYMS AND TERMS | ||||||||
2023 Repurchase Program | The repurchase of up to $100 million of the Corporation's common stock commencing January 1, 2023 | |||||||
ACL | Allowance for Credit Losses | |||||||
AFS | Available for Sale | |||||||
ALCO | Asset/Liability Management Committee | |||||||
AML | Anti-Money Laundering | |||||||
AOCI | Accumulated Other Comprehensive Income | |||||||
APR | Annual Percentage Rate | |||||||
ARC | Auction Rate Security | |||||||
ASC | Accounting Standards Codification | |||||||
ASU | Accounting Standards Update | |||||||
ATM | Automated Teller Machine | |||||||
BHCA | Bank Holding Company Act of 1956, as amended | |||||||
bp or bps | Basis Point(s) | |||||||
BSA | Bank Secrecy Act of 1970, as amended | |||||||
Basel Committee | Basel Committee on Banking Supervision | |||||||
Basel III Rules | Risked-based requirements and rules issued by federal banking agencies | |||||||
CARES Act | Coronavirus Aid, Relief, and Economic Security Act | |||||||
CCPA | California Consumer Privacy Act | |||||||
CDI | Core Deposit Intangible | |||||||
CECL | Current Expected Credit Losses | |||||||
CECL Day 1 Provision | Initial provision for credit losses required on non-purchased credit deteriorated loans acquired in the Merger | |||||||
CET1 | Common Equity Tier 1 | |||||||
CFPB | Consumer Financial Protection Bureau | |||||||
Corporation, Company, we, our, or us | Fulton Financial Corporation | |||||||
COVID-19 | Coronavirus | |||||||
CPI | Consumer Price Index | |||||||
CRA | Community Reinvestment Act | |||||||
CTA | Corporate Transparency Act | |||||||
DIF | Federal Deposit Insurance Fund | |||||||
Directors' Plan | Amended and Restated Directors' Equity Participation Plan | |||||||
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act | |||||||
DOJ | U.S. Department of Justice | |||||||
DOL | U.S. Department of Labor | |||||||
DTI | Debt-to-income | |||||||
DTAs | Deferred Tax Assets | |||||||
EAD | Exposure at Default | |||||||
Economic Growth Act | Economic Growth, Regulatory Relief, and Consumer Protection Act | |||||||
ECOA | Equal Credit Opportunity Act | |||||||
Employee Equity Plan | 2022 Amended and Restated Equity and Cash Incentive Compensation Plan | |||||||
ESPP | Employee Stock Purchase Plan | |||||||
ETR | Effective Tax Rate | |||||||
Exchange Act | Securities Exchange Act of 1934 | |||||||
FASB | Financial Accounting Standards Board |
FCA | United Kingdom Financial Conduct Authority | |||||||
FDIC | Federal Deposit Insurance Corporation | |||||||
FDICIA | Federal Deposit Insurance Corporation Improvement Act | |||||||
Fed Funds Rate | Target Federal Funds Rate | |||||||
Federal Reserve Board | Board of Governors of the Federal Reserve System | |||||||
FHLB | Federal Home Loan Bank | |||||||
FinCEN | Financial Crimes Enforcement Network | |||||||
Fintechs | Financial Technology Companies | |||||||
FOMC | Federal Open Market Committee | |||||||
Foreign Currency Nostro Accounts | Foreign currency with international correspondent banks | |||||||
FRB | Federal Reserve Bank | |||||||
FSOC | Financial Stability Oversight Council | |||||||
FTE | Fully Taxable-Equivalent | |||||||
Fulton Bank or the Bank | Fulton Bank, N.A. | |||||||
GAAP | U.S. Generally Accepted Accounting Principles | |||||||
GLBA | Gramm-Leach-Bliley Act | |||||||
HTM | Held to Maturity | |||||||
IDI | Insured depository institution | |||||||
LGD | Loss Given Default | |||||||
LIBOR | London Interbank Offered Rate | |||||||
LIBOR Act | Adjustable Interest Rate (LIBOR) Act | |||||||
Management's Discussion | Management's Discussion and Analysis of Financial Condition and Results of Operations | |||||||
Merger | The acquisition by the Corporation of Prudential Bancorp effective as of July 1, 2022 | |||||||
Merger Agreement | Agreement and Plan of Merger, dated as of March 1, 2022, between the Corporation and Prudential Bancorp | |||||||
Merger Consideration | For each share of Prudential Bancorp common stock, $3.65 in cash and 0.7974 of a share of the Corporation's common stock, with cash paid in lieu of each fractional share of the Corporation's common stock that would otherwise be issued, determined by multiplying such fractional share amount by $18.25 | |||||||
MSRs | Mortgage Servicing Rights | |||||||
NDAA | National Defense Authorization Act | |||||||
Net Loans | Loans and lease receivables, (net of unearned income) | |||||||
N/M | Not meaningful | |||||||
NMTC | New Market Tax Credits | |||||||
OBS | Off-Balance-Sheet | |||||||
OCC | Office of the Comptroller of the Currency | |||||||
OCI | Other Comprehensive Income | |||||||
OREO | Other Real Estate Owned | |||||||
OTTI | Other-Than-Temporary Impairment | |||||||
Parent Company | Fulton Financial Corporation individually | |||||||
Patriot Act | USA PATRIOT Act of 2001 | |||||||
PD | Probability of Default | |||||||
Pension Plan | Fulton Financial Affiliates' Defined Benefit Pension Plan | |||||||
Postretirement Plan | Postretirement Benefits Plan | |||||||
PPP | Paycheck Protection Program | |||||||
Prudential Bancorp | Prudential Bancorp, Inc. |
Prudential Bancorp Pension Plan | The Pentegra Defined Benefits Plan for Financial Institutions, a multiemployer defined benefit pension plan | |||||||
PSU | Performance-Based Restricted Stock Unit | |||||||
QM | Qualified mortgage | |||||||
RESPA | Real Estate Settlement Procedures Act | |||||||
ROU | Right-of-Use | |||||||
RSU | Restricted Stock Unit | |||||||
RWA | Risk-Weighted Assets | |||||||
S&P 500 | Standard and Poor's 500 index | |||||||
SBA | Small Business Administration | |||||||
SEC | U.S. Securities and Exchange Commission | |||||||
SOFR | Secured Overnight Financing Rate | |||||||
Tax Act | Tax Cuts and Jobs Act of 2017 | |||||||
Tax Code | U.S. Internal Revenue Code of 1986, as amended | |||||||
TCIs | Tax Credit Investments, including qualified affordable housing projects, NMTC projects and historical rehabilitation projects | |||||||
TDR | Troubled Debt Restructuring | |||||||
TruPS | Trust Preferred Securities | |||||||
TILA | Truth in Lending Act | |||||||
UST | United States Treasury | |||||||
VIEs | Variable Interest Entities | |||||||
Visa Shares | Visa, Inc. Class B restricted shares | |||||||
Volcker Rule Regulators | FDIC, Federal Reserve Board, OCC, Commodity Futures Trading Commission and SEC |
Name | Age | Office Held and Term of Office | ||||||||||||
E. Philip Wenger | 65 | Director of the Corporation since 2009 and Director of Fulton Bank since 2019. Chairman of the Board and Chief Executive Officer of the Corporation since January 2013. Mr. Wenger previously served as President of the Corporation from 2008 to 2017, Chief Operating Officer of the Corporation from 2008 to 2012, Director of Fulton Bank from 2003 to 2009, Chairman of Fulton Bank from 2006 to 2009 and employed by the Corporation in a number of positions since 1979. On December 31, 2022, Mr. Wenger retired as Chairman of the Board and Chief Executive Officer of the Corporation. | ||||||||||||
Curtis J. Myers | 54 | Director of the Corporation since 2019 and Director of Fulton Bank since 2009. Chairman of the Board and Chief Executive Officer of the Corporation since January 1, 2023. Mr. Myers previously served as President and Chief Operating Officer of the Corporation from 2018 to 2022. Chairman and Chief Executive Officer of Fulton Bank since 2018. Mr. Myers served as Senior Executive Vice President of the Corporation from 2013 to 2017 and President and Chief Operating Officer of Fulton Bank since 2009. Mr. Myers has been employed by Fulton Bank in a number of positions since 1990. | ||||||||||||
Mark R. McCollom | 58 | Senior Executive Vice President and Chief Financial Officer of the Corporation since 2018. Mr. McCollom joined the Corporation in 2017 as Senior Executive Vice President and Chief Financial Officer Designee. Before joining the Corporation Mr. McCollom was a Senior Managing Director, Chief Administrative Officer and Chief Operating Officer of Griffin Financial Group, LLC ("Griffin"). Prior to his role at Griffin, Mr. McCollom was the Chief Financial Officer of Sovereign Bancorp, Inc. He has over 30 years of experience in the financial services industry. | ||||||||||||
David M. Campbell | 61 | Senior Executive Vice President and Director of Strategic Initiatives and Operations since 2014. Mr. Campbell joined the Corporation in 2009 as Chief Administrative Officer of Fulton Financial Advisors, a division of Fulton Bank and was promoted to President of Fulton Financial Advisors in 2010. He has more than 40 years of experience in the financial services industry. | ||||||||||||
Beth Ann L. Chivinski | 62 | Senior Executive Vice President and Chief Risk Officer of the Corporation since 2016. Previously, Ms. Chivinski served as the Corporation's Chief Audit Executive from 2013 to 2016 and was promoted to Senior Executive Vice President of the Corporation in 2014. Ms. Chivinski served as the Corporation's Controller and Chief Accounting Officer from 1994 to 2013, having been promoted to Executive Vice President in 2004. | ||||||||||||
Andy B. Fiol | 51 | Appointed Senior Executive Vice President and Head of Consumer Banking, and as an executive officer of the Corporation, effective January 1, 2023. Mr. Fiol previously served as Senior Executive Vice President and Head of the Consumer & Small Business Bank of the Corporation since 2022. Mr. Fiol joined the Corporation as Director of Consumer & Small Business Channel, Segment and Product in 2018. Prior to joining the Corporation, he served as an executive in various roles at both Capital One Bank from 2011 to 2018 and prior to that at Bank of America. He has more than 20 years of experience in the financial services industry. |
Name | Age | Office Held and Term of Office | ||||||||||||
Natasha R. Luddington | 48 | Senior Executive Vice President, Chief Legal Officer and Corporate Secretary since 2021. Ms. Luddington became the Senior Executive Vice President, Chief Legal Officer and Corporate Secretary Designee of the Corporation in October 2021. Prior to joining the Corporation, Ms. Luddington served in various positions, including Interim General Counsel and Senior Vice President, Associate General Counsel at Pacific Western Bank from 2014 to 2021. Ms. Luddington served in various roles in CapitalSource Bank's legal department from 2007 to 2014. Ms. Luddington has more than 20 years of legal experience. | ||||||||||||
Meg R. Mueller | 58 | Senior Executive Vice President and Head of Commercial Business since 2018. Ms. Mueller served as Chief Credit Officer of the Corporation from 2010 to 2017. Ms. Mueller was promoted to Senior Executive Vice President of the Corporation in 2013 and has been employed by the Corporation in a number of positions since 1996. | ||||||||||||
Angela M. Sargent | 55 | Senior Executive Vice President and Chief Information Officer of the Corporation since 2013. Ms. Sargent served as Executive Vice President and Chief Information Officer from 2002 to 2013 and has been employed by the Corporation in a number of positions since 1992. | ||||||||||||
Angela M. Snyder | 58 | Chief Banking Officer and Senior Executive Vice President since 2022. Ms. Snyder was Head of Consumer Banking from 2018 to 2022. Ms. Snyder joined the Corporation in 2002 as President of Woodstown National Bank. Ms. Snyder served as Chairwoman, President, and Chief Executive Officer of Fulton Bank of New Jersey until 2019. Ms. Snyder has more than 30 years of experience in the financial services industry. | ||||||||||||
Bernadette M. Taylor | 61 | Senior Executive Vice President and Chief Human Resource Officer since 2015. Dr. Taylor served as Executive Vice President of employee services, employment, and director of human resources prior to her promotion in 2015 to Chief Human Resources Officer. Dr. Taylor joined the Corporation in 1994 as the Corporate Training Director. |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (1) | Weighted-average exercise price of outstanding options, warrants and rights (2) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in first column) (3) | |||||||||||||||||
Equity compensation plans approved by security holders | 2,632,660 | $ | 12.11 | 6,296,473 | ||||||||||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||||||||||
Total | 2,632,660 | $ | 12.11 | 6,296,473 |
Year Ending December 31 | ||||||||||||||||||||||||||||||||||||||
Index | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | ||||||||||||||||||||||||||||||||
Fulton Financial Corporation | $ | 100.00 | $ | 86.99 | $ | 101.10 | $ | 77.24 | $ | 106.80 | $ | 112.23 | ||||||||||||||||||||||||||
S&P 500 | $ | 100.00 | $ | 116.49 | $ | 153.17 | $ | 181.35 | $ | 233.41 | $ | 155.59 | ||||||||||||||||||||||||||
Nasdaq Bank Index | $ | 100.00 | $ | 86.09 | $ | 102.99 | $ | 90.82 | $ | 129.20 | $ | 100.86 |
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands, except per share) | |||||||||||||||||
Net income | $ | 286,981 | $ | 275,497 | $ | 178,040 | |||||||||||
Net income available to common shareholders | $ | 276,733 | $ | 265,220 | $ | 175,905 | |||||||||||
Diluted net income available to common shareholders per share | $ | 1.67 | $ | 1.62 | $ | 1.08 | |||||||||||
Diluted operating net income available to common shareholders per share(1) | $ | 1.76 | $ | 1.62 | $ | 1.08 | |||||||||||
Return on average assets | 1.10 | % | 1.05 | % | 0.73 | % | |||||||||||
Operating return on average assets(1) | 1.16 | % | 1.05 | % | 0.73 | % | |||||||||||
Return on average common equity | 11.69 | % | 10.64 | % | 9.94 | % | |||||||||||
Return on average common shareholders' equity (tangible) (1) | 16.08 | % | 13.58 | % | 9.66 | % | |||||||||||
Net interest margin (2) | 3.27 | % | 2.78 | % | 2.86 | % | |||||||||||
Efficiency ratio (1) | 60.5 | % | 63.1 | % | 65.7 | % | |||||||||||
Non-performing assets to total assets | 0.66 | % | 0.60 | % | 0.58 | % | |||||||||||
Net charge-offs (recoveries) to average loans | 0.04 | % | 0.07 | % | 0.05 | % | |||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||
Operating net income available to common shareholders | |||||||||||||||||
Net income available to common shareholders | $ | 276,733 | $ | 265,220 | $ | 175,905 | |||||||||||
Plus: Core deposit intangible amortization | 1,029 | — | — | ||||||||||||||
Plus: Merger-related expenses | 10,328 | — | — | ||||||||||||||
Plus: CECL Day 1 Provision expense | 7,954 | — | — | ||||||||||||||
Less: Tax impact of adjustments | (4,055) | — | — | ||||||||||||||
Operating net income available to common shareholders (numerator) | $ | 291,989 | $ | 265,220 | $ | 175,905 | |||||||||||
Weighted average shares (diluted) (denominator) | 165,472 | 163,307 | 163,090 | ||||||||||||||
Operating net income available to common shareholders, per share (diluted) | $ | 1.76 | $ | 1.62 | $ | 1.08 | |||||||||||
Operating return on average assets | |||||||||||||||||
Net income | $ | 286,981 | $ | 275,497 | $ | 178,040 | |||||||||||
Plus: Core deposit intangible amortization | 1,029 | — | — | ||||||||||||||
Plus: Merger-related expenses | 10,328 | — | — | ||||||||||||||
Plus: CECL Day 1 Provision expense | 7,954 | — | — | ||||||||||||||
Less: Tax impact of adjustments | (4,055) | — | — | ||||||||||||||
Operating net income (numerator) | $ | 302,237 | $ | 275,497 | $ | 178,040 | |||||||||||
Total average assets (denominator) | $ | 25,971,484 | $ | 26,170,333 | $ | 24,333,717 | |||||||||||
Operating return on average assets | 1.16 | % | 1.05 | % | 0.73 | % | |||||||||||
Return on average common shareholders' equity (tangible) | |||||||||||||||||
Net income available to common shareholders | $ | 276,733 | $ | 265,220 | $ | 175,905 | |||||||||||
Plus: Intangible amortization | 1,731 | 589 | 529 | ||||||||||||||
Plus: Merger-related expenses | 10,328 | — | — | ||||||||||||||
Plus: CECL Day 1 Provision expense | 7,954 | — | — | ||||||||||||||
Less: Tax impact of adjustments | (4,203) | (127) | (112) | ||||||||||||||
Operating net income available to common shareholders (numerator) | $ | 292,543 | $ | 265,682 | $ | 176,322 | |||||||||||
Average shareholders' equity | $ | 2,560,323 | $ | 2,685,946 | $ | 2,391,649 | |||||||||||
Less: Average goodwill and intangible assets | (548,102) | (536,621) | (535,196) | ||||||||||||||
Less: Average preferred stock | (192,878) | (192,878) | (32,084) | ||||||||||||||
Average tangible common shareholders' equity (denominator) | $ | 1,819,343 | $ | 1,956,447 | $ | 1,824,369 | |||||||||||
Return on average common shareholders' equity (tangible) | 16.08 | % | 13.58 | % | 9.66 | % | |||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Efficiency ratio | |||||||||||||||||
Non-interest expense | $ | 633,728 | $ | 617,830 | $ | 579,440 | |||||||||||
Less: Amortization of tax credit investments | (2,783) | (6,187) | (6,126) | ||||||||||||||
Less: Intangible amortization | (1,731) | (589) | (529) | ||||||||||||||
Less: Merger-related expenses | (10,328) | — | — | ||||||||||||||
Less: Debt extinguishment costs | — | (33,249) | (2,878) | ||||||||||||||
Numerator | $ | 618,886 | $ | 577,805 | $ | 569,907 | |||||||||||
Net interest income | $ | 781,634 | $ | 663,730 | $ | 629,207 | |||||||||||
Tax equivalent adjustment | 14,995 | 12,296 | 12,302 | ||||||||||||||
Plus: Total non-interest income | 227,130 | 273,745 | 229,388 | ||||||||||||||
Less: Investment securities losses (gains), net | 27 | (33,516) | (3,053) | ||||||||||||||
Total revenue (denominator) | $ | 1,023,786 | $ | 916,255 | $ | 867,844 | |||||||||||
Efficiency ratio | 60.5 | % | 63.1 | % | 65.7 | % | |||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loans(1) | $ | 19,152,740 | $ | 765,603 | 4.00 | % | $ | 18,627,787 | $ | 644,387 | 3.46 | % | $ | 18,270,390 | $ | 662,785 | 3.63 | % | |||||||||||||||||||||||||||||||||||
Investment securities(2) | 4,364,627 | 106,115 | 2.43 | 3,673,250 | 86,325 | 2.35 | 3,007,467 | 84,814 | 2.82 | ||||||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 14,974 | 866 | 5.78 | 39,211 | 1,302 | 3.32 | 60,015 | 2,077 | 3.46 | ||||||||||||||||||||||||||||||||||||||||||||
Other interest-earning assets | 814,731 | 7,249 | 0.89 | 2,014,954 | 3,694 | 0.18 | 1,120,727 | 5,504 | 0.49 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 24,347,072 | 879,833 | 3.61 | 24,355,202 | 735,708 | 3.02 | 22,458,599 | 755,180 | 3.36 | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 156,050 | 165,942 | 139,146 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and equipment | 220,982 | 228,708 | 238,864 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 1,505,277 | 1,686,053 | 1,746,956 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Less: ACL - loans (3) | (257,897) | (265,572) | (249,848) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 25,971,484 | $ | 26,170,333 | $ | 24,333,717 | |||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Demand deposits | $ | 5,593,942 | $ | 8,219 | 0.15 | % | $ | 5,979,479 | $ | 3,662 | 0.06 | % | $ | 5,278,941 | $ | 11,390 | 0.22 | % | |||||||||||||||||||||||||||||||||||
Savings and money market deposits | 6,458,165 | 16,642 | 0.26 | 6,306,967 | 4,936 | 0.08 | 5,550,234 | 14,654 | 0.26 | ||||||||||||||||||||||||||||||||||||||||||||
Brokered deposits | 262,359 | 4,097 | 1.56 | 286,901 | 1,096 | 0.38 | 310,763 | 2,387 | 0.77 | ||||||||||||||||||||||||||||||||||||||||||||
Time deposits | 1,617,804 | 14,871 | 0.92 | 1,939,446 | 20,311 | 1.05 | 2,546,305 | 41,615 | 1.63 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 13,932,270 | 43,829 | 0.31 | 14,512,793 | 30,005 | 0.21 | 13,686,243 | 70,046 | 0.51 | ||||||||||||||||||||||||||||||||||||||||||||
Borrowings | 1,358,357 | 39,375 | 2.89 | 1,297,963 | 29,677 | 2.29 | 2,064,883 | 43,625 | 2.11 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 15,290,627 | 83,204 | 0.54 | 15,810,756 | 59,682 | 0.38 | 15,751,126 | 113,671 | 0.72 | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Demand deposits | 7,522,304 | 7,211,153 | 5,714,803 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 598,230 | 462,478 | 476,139 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | 23,411,161 | 23,484,387 | 21,942,068 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits/Cost of deposits | 21,454,574 | 0.20% | 21,723,946 | 0.14% | 19,401,046 | 0.36% | |||||||||||||||||||||||||||||||||||||||||||||||
Total Interest-bearing liabilities and non-interest bearing deposits/Cost of funds | 22,812,931 | 0.36% | 23,021,909 | 0.26% | 21,465,929 | 0.53% | |||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' equity | 2,560,323 | 2,685,946 | 2,391,649 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 25,971,484 | $ | 26,170,333 | $ | 24,333,717 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income/net interest margin (FTE) | 796,629 | 3.27 | % | 676,026 | 2.78 | % | 641,509 | 2.86 | % | ||||||||||||||||||||||||||||||||||||||||||||
Tax equivalent adjustment | (14,995) | (12,296) | (12,302) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 781,634 | $ | 663,730 | $ | 629,207 |
2022 vs. 2021 Increase (decrease) due to change in | |||||||||||||||||
Volume | Yield/Rate | Net | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Interest income on: | |||||||||||||||||
Net loans(1) | $ | 18,540 | $ | 102,676 | $ | 121,216 | |||||||||||
Investment securities | 16,759 | 3,031 | 19,790 | ||||||||||||||
Loans held for sale | (1,076) | 640 | (436) | ||||||||||||||
Other interest-earning assets | (3,288) | 6,843 | 3,555 | ||||||||||||||
Total interest income | $ | 30,935 | $ | 113,190 | $ | 144,125 | |||||||||||
Interest expense on: | |||||||||||||||||
Demand deposits | $ | (256) | $ | 4,813 | $ | 4,557 | |||||||||||
Savings and money market deposits | 123 | 11,583 | 11,706 | ||||||||||||||
Brokered deposits | (101) | 3,102 | 3,001 | ||||||||||||||
Time deposits | (3,115) | (2,325) | (5,440) | ||||||||||||||
Borrowings | 1,463 | 8,235 | 9,698 | ||||||||||||||
Total interest expense | $ | (1,886) | $ | 25,408 | $ | 23,522 |
Note: | Changes which are partially attributable to both volume and rate are allocated to the volume and rate components presented above based on the percentage of the direct changes that are attributable to each component. |
Increase (Decrease) in Balance | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
Balance | Rate | Balance | Rate | $ | % | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 7,522,304 | — | % | $ | 7,211,153 | — | % | $ | 311,151 | 4.3 | % | |||||||||||||||||||||||
Interest-bearing demand | 5,593,942 | 0.15 | 5,979,479 | 0.06 | (385,537) | (6.4) | |||||||||||||||||||||||||||||
Savings and money market deposits | 6,458,165 | 0.26 | 6,306,967 | 0.08 | 151,198 | 2.4 | |||||||||||||||||||||||||||||
Total demand deposits and savings and money market deposits | 19,574,411 | 0.13 | 19,497,599 | 0.04 | 76,812 | 0.4 | |||||||||||||||||||||||||||||
Brokered deposits | 262,359 | 1.56 | 286,901 | 0.38 | (24,542) | (8.6) | |||||||||||||||||||||||||||||
Time deposits | 1,617,804 | 0.92 | 1,939,446 | 1.05 | (321,642) | (16.6) | |||||||||||||||||||||||||||||
Total deposits | $ | 21,454,574 | 0.20 | % | $ | 21,723,946 | 0.14 | % | $ | (269,372) | (1.2) | % |
Increase (Decrease) in Balance | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
Balance | Rate | Balance | Rate | $ | % | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Borrowings: | |||||||||||||||||||||||||||||||||||
Federal funds purchased | $ | 91,125 | 3.21 | % | $ | — | — | % | $ | 91,125 | N/M | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 194,295 | 3.77 | 126,677 | 1.80 | 67,618 | 53.4 | % | ||||||||||||||||||||||||||||
Senior debt and subordinated debt | 564,337 | 3.94 | 657,386 | 4.07 | (93,049) | (14.2) | |||||||||||||||||||||||||||||
Other borrowings(1) | 508,600 | 1.34 | 513,900 | 0.12 | (5,300) | (1.0) | |||||||||||||||||||||||||||||
Total borrowings | $ | 1,358,357 | 2.89 | % | $ | 1,297,963 | 2.29 | % | $ | 60,394 | 4.7 | % |
Increase (Decrease) | |||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Commercial banking: | |||||||||||||||||||||||
Merchant and card | $ | 28,276 | $ | 26,121 | $ | 2,155 | 8.3 | % | |||||||||||||||
Cash management | 23,729 | 20,865 | 2,864 | 13.7 | |||||||||||||||||||
Capital markets | 12,256 | 9,381 | 2,875 | 30.6 | |||||||||||||||||||
Other commercial banking | 11,518 | 12,322 | (804) | (6.5) | |||||||||||||||||||
Total commercial banking | 75,779 | 68,689 | 7,090 | 10.3 | |||||||||||||||||||
Consumer banking: | |||||||||||||||||||||||
Card | 24,472 | 23,505 | 967 | 4.1 | |||||||||||||||||||
Overdraft | 15,480 | 12,844 | 2,636 | 20.5 | |||||||||||||||||||
Other consumer banking | 9,544 | 9,195 | 349 | 3.8 | |||||||||||||||||||
Total consumer banking | 49,496 | 45,544 | 3,952 | 8.7 | |||||||||||||||||||
Wealth management revenues | 72,843 | 71,798 | 1,045 | 1.5 | |||||||||||||||||||
Mortgage banking: | |||||||||||||||||||||||
Gains on sales of mortgage loans | 8,820 | 24,380 | (15,560) | (63.8) | |||||||||||||||||||
Mortgage servicing income | 5,384 | 9,196 | (3,812) | (41.5) | |||||||||||||||||||
Total mortgage banking | 14,204 | 33,576 | (19,372) | (57.7) | |||||||||||||||||||
Other | 14,835 | 20,622 | (5,787) | (28.1) | |||||||||||||||||||
Non-interest income before investment securities gains | 227,157 | 240,229 | (13,072) | (5.4) | |||||||||||||||||||
Investment securities gains (losses), net | (27) | 33,516 | (33,543) | (100.1) | |||||||||||||||||||
Total Non-Interest Income | $ | 227,130 | $ | 273,745 | $ | (46,615) | (17.0) | % |
Increase (Decrease) | |||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Salaries and employee benefits | $ | 356,884 | $ | 329,138 | $ | 27,746 | 8.4 | % | |||||||||||||||
Data processing and software | 60,255 | 56,440 | 3,815 | 6.8 | |||||||||||||||||||
Net occupancy | 56,195 | 53,799 | 2,396 | 4.5 | |||||||||||||||||||
Other outside services | 37,152 | 34,194 | 2,958 | 8.7 | |||||||||||||||||||
State taxes | 15,113 | 18,793 | (3,680) | (19.6) | |||||||||||||||||||
Equipment | 14,033 | 13,807 | 226 | 1.6 | |||||||||||||||||||
FDIC insurance | 12,547 | 10,665 | 1,882 | 17.6 | |||||||||||||||||||
Professional fees | 9,123 | 9,647 | (524) | (5.4) | |||||||||||||||||||
Marketing | 6,885 | 5,275 | 1,610 | 30.5 | |||||||||||||||||||
Intangible amortization | 1,731 | 589 | 1,142 | N/M | |||||||||||||||||||
Debt extinguishment | — | 33,249 | (33,249) | N/M | |||||||||||||||||||
Merger-related expenses | 10,328 | — | 10,328 | N/M | |||||||||||||||||||
Other | 53,482 | 52,234 | 1,248 | 2.4 | |||||||||||||||||||
Total Non-Interest Expense | $ | 633,728 | $ | 617,830 | $ | 15,898 | 2.6 | % |
2021 vs. 2020 Increase (decrease) due to change in | ||||||||||||||||||||
Volume | Yield/Rate | Net | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Interest income on: | ||||||||||||||||||||
Net loans(1) | $ | 12,882 | $ | (31,280) | $ | (18,398) | ||||||||||||||
Investment securities | 19,055 | (17,544) | 1,511 | |||||||||||||||||
Loans held for sale | (694) | (81) | (775) | |||||||||||||||||
Other interest-earning assets | 2,866 | (4,676) | (1,810) | |||||||||||||||||
Total interest income | $ | 34,109 | $ | (53,581) | $ | (19,472) | ||||||||||||||
Interest expense on: | ||||||||||||||||||||
Demand deposits | $ | 1,414 | $ | (9,142) | $ | (7,728) | ||||||||||||||
Savings and money market deposits | 1,689 | (11,407) | (9,718) | |||||||||||||||||
Brokered deposits | (170) | (1,121) | (1,291) | |||||||||||||||||
Time deposits | (8,545) | (12,759) | (21,304) | |||||||||||||||||
Borrowings | (17,763) | 3,815 | (13,948) | |||||||||||||||||
Total interest expense | $ | (23,375) | $ | (30,614) | $ | (53,989) |
2021 | 2020 | Increase (Decrease) in Balance | |||||||||||||||||||||||||||||||||
Balance | Rate | Balance | Rate | $ | % | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Borrowings: | |||||||||||||||||||||||||||||||||||
Federal funds purchased | $ | — | — | % | $ | 64,918 | 0.83 | % | $ | (64,918) | N/M | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 126,677 | 1.80 | 557,596 | 1.83 | (430,919) | (77.3) | |||||||||||||||||||||||||||||
Senior debt and subordinated debt | 657,386 | 4.07 | 696,704 | 4.02 | (39,318) | (5.6) | |||||||||||||||||||||||||||||
Other borrowings(1) | 513,900 | 0.12 | 745,665 | 0.36 | (231,765) | (31.1) | |||||||||||||||||||||||||||||
Total borrowings | $ | 1,297,963 | 2.29 | % | $ | 2,064,883 | 2.11 | % | $ | (766,920) | (37.1) | % |
Increase (Decrease) | |||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Commercial banking: | |||||||||||||||||||||||
Merchant and card | $ | 26,121 | $ | 23,139 | $ | 2,982 | 12.9 | % | |||||||||||||||
Cash management | 20,865 | 18,725 | 2,140 | 11.4 | |||||||||||||||||||
Capital markets | 9,381 | 18,288 | (8,907) | (48.7) | |||||||||||||||||||
Other commercial banking | 12,322 | 10,134 | 2,188 | 21.6 | |||||||||||||||||||
Total commercial banking | 68,689 | 70,286 | (1,597) | (2.3) | |||||||||||||||||||
Consumer banking: | |||||||||||||||||||||||
Card | 23,505 | 19,777 | 3,728 | 18.9 | |||||||||||||||||||
Overdraft | 12,844 | 12,556 | 288 | 2.3 | |||||||||||||||||||
Other consumer banking | 9,195 | 9,265 | (70) | (0.8) | |||||||||||||||||||
Total consumer banking | 45,544 | 41,598 | 3,946 | 9.5 | |||||||||||||||||||
Wealth management revenues | 71,798 | 59,058 | 12,740 | 21.6 | |||||||||||||||||||
Mortgage banking: | |||||||||||||||||||||||
Gains on sales of mortgage loans | 24,380 | 53,599 | (29,219) | (54.5) | |||||||||||||||||||
Mortgage servicing income | 9,196 | (11,290) | 20,486 | N/M | |||||||||||||||||||
Total mortgage banking | 33,576 | 42,309 | (8,733) | (20.6) | |||||||||||||||||||
Other | 20,622 | 13,084 | 7,538 | 57.6 | |||||||||||||||||||
Non-interest income before investment securities gains | 240,229 | 226,335 | 13,894 | 6.1 | |||||||||||||||||||
Investment securities gains (losses), net | 33,516 | 3,053 | 30,463 | N/M | |||||||||||||||||||
Total Non-Interest Income | $ | 273,745 | $ | 229,388 | $ | 44,357 | 19.3 | % |
Increase (Decrease) | |||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Salaries and employee benefits | $ | 329,138 | $ | 324,395 | $ | 4,743 | 1.5 | % | |||||||||||||||
Data processing and software | 56,440 | 48,073 | 8,367 | 17.4 | |||||||||||||||||||
Net occupancy | 53,799 | 53,013 | 786 | 1.5 | |||||||||||||||||||
Other outside services | 34,194 | 31,432 | 2,762 | 8.8 | |||||||||||||||||||
Debt extinguishment | 33,249 | 2,878 | 30,371 | N/M | |||||||||||||||||||
State taxes | 18,793 | 12,613 | 6,180 | 49.0 | |||||||||||||||||||
Equipment | 13,807 | 13,885 | (78) | (0.6) | |||||||||||||||||||
FDIC insurance | 10,665 | 8,865 | 1,800 | 20.3 | |||||||||||||||||||
Professional fees | 9,647 | 12,835 | (3,188) | (24.8) | |||||||||||||||||||
Marketing | 5,275 | 5,127 | 148 | 2.9 | |||||||||||||||||||
Intangible amortization | 589 | 529 | 60 | 11.3 | |||||||||||||||||||
Other | 52,234 | 65,795 | (13,561) | (20.6) | |||||||||||||||||||
Total non-interest expense | $ | 617,830 | $ | 579,440 | $ | 38,390 | 6.6 | % |
December 31 | Increase (Decrease) | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 681,921 | $ | 1,638,614 | $ | (956,693) | (58.4) | % | |||||||||||||||
FRB and FHLB Stock | 130,186 | 57,635 | 72,551 | 125.9 | |||||||||||||||||||
Loans held for sale | 7,264 | 35,768 | (28,504) | (79.7) | |||||||||||||||||||
Investment securities | 3,968,023 | 4,167,774 | (199,751) | (4.8) | |||||||||||||||||||
Loans, net | 20,010,181 | 18,076,349 | 1,933,832 | 10.7 | |||||||||||||||||||
Net premises and equipment | 225,141 | 220,357 | 4,784 | 2.2 | |||||||||||||||||||
Goodwill and intangibles | 560,824 | 538,053 | 22,771 | 4.2 | |||||||||||||||||||
Other assets | 1,348,162 | 1,061,848 | 286,314 | 27.0 | |||||||||||||||||||
Total Assets | $ | 26,931,702 | $ | 25,796,398 | $ | 1,135,304 | 4.4 | % | |||||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||||||
Deposits | $ | 20,649,538 | $ | 21,573,499 | $ | (923,961) | (4.3) | % | |||||||||||||||
Borrowings | 2,871,207 | 1,038,109 | 1,833,098 | N/M | |||||||||||||||||||
Other liabilities | 831,200 | 472,110 | 359,090 | 76.1 | |||||||||||||||||||
Total Liabilities | 24,351,945 | 23,083,718 | 1,268,227 | 5.5 | |||||||||||||||||||
Total Shareholders' Equity | 2,579,757 | 2,712,680 | (132,923) | (4.9) | |||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 26,931,702 | $ | 25,796,398 | $ | 1,135,304 | 4.4 | % |
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Available for Sale | |||||||||||
U.S. Government securities | $ | 218,485 | $ | 127,618 | |||||||
U.S. Government sponsored agency securities | 1,008 | — | |||||||||
State and municipal securities | 1,105,712 | 1,188,670 | |||||||||
Corporate debt securities | 422,309 | 386,133 | |||||||||
Collateralized mortgage obligations | 134,033 | 209,359 | |||||||||
Residential mortgage-backed securities | 212,698 | 229,795 | |||||||||
Commercial mortgage-backed securities | 552,522 | 971,148 | |||||||||
Auction rate securities | — | 74,667 | |||||||||
Total available for sale securities | 2,646,767 | 3,187,390 | |||||||||
Held to Maturity | |||||||||||
Residential mortgage-backed securities | 457,325 | 404,958 | |||||||||
Commercial mortgage-backed securities | 863,931 | 575,426 | |||||||||
Total held to maturity securities | 1,321,256 | 980,384 | |||||||||
Total investment securities | $ | 3,968,023 | $ | 4,167,774 | |||||||
December 31 | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Real estate – commercial mortgage | $ | 7,693,835 | $ | 7,279,080 | $ | 7,105,092 | |||||||||||
Commercial and industrial(1) | 4,477,537 | 4,208,327 | 5,670,828 | ||||||||||||||
Real estate – residential mortgage | 4,737,279 | 3,846,750 | 3,141,915 | ||||||||||||||
Real estate – home equity | 1,102,838 | 1,118,248 | 1,202,913 | ||||||||||||||
Real estate – construction | 1,269,925 | 1,139,779 | 1,047,218 | ||||||||||||||
Consumer | 699,179 | 464,657 | 466,772 | ||||||||||||||
Equipment lease financing and other | 324,928 | 283,557 | 284,377 | ||||||||||||||
Overdrafts | 3,403 | 1,988 | 4,806 | ||||||||||||||
Gross loans | 20,308,924 | 18,342,386 | 18,923,921 | ||||||||||||||
Unearned income | (29,377) | (17,036) | (23,101) | ||||||||||||||
Net loans | $ | 20,279,547 | $ | 18,325,350 | $ | 18,900,820 |
2022 | 2021 | ||||||||||
Real estate (1) | 43.9 | % | 44.3 | % | |||||||
Manufacturing | 6.8 | 5.1 | |||||||||
Health care | 6.5 | 6.7 | |||||||||
Agriculture | 5.4 | 6.1 | |||||||||
Construction (2) | 4.7 | 3.9 | |||||||||
Other services (3) | 4.7 | 5.0 | |||||||||
Hospitality and food services | 3.6 | 3.7 | |||||||||
Retail | 3.1 | 3.0 | |||||||||
Wholesale trade | 3.1 | 2.8 | |||||||||
Educational services | 2.8 | 2.7 | |||||||||
Arts, entertainment and recreation | 2.0 | 2.3 | |||||||||
Professional, scientific and technical services | 1.8 | 1.8 | |||||||||
Transportation and warehousing | 1.3 | 1.3 | |||||||||
Public administration | 1.2 | 1.5 | |||||||||
Administrative and Support | 1.1 | 0.6 | |||||||||
Finance and Insurance | 0.9 | 1.4 | |||||||||
Other | 7.1 | 7.8 | |||||||||
Total | 100.0 | % | 100.0 | % |
Commercial and Industrial | Real Estate - Commercial Mortgage | Real Estate - Construction | Real Estate - Residential Mortgage | Consumer and Real Estate - Home Equity | Equipment Lease Financing | Total | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 31,993 | $ | 51,470 | $ | 1,395 | $ | 26,107 | $ | 9,920 | $ | 16,313 | $ | 137,198 | |||||||||||||||||||||||||||
Additions | 40,722 | 36,664 | 404 | 12,498 | 4,600 | 1,919 | 96,807 | ||||||||||||||||||||||||||||||||||
Payments | (27,175) | (25,668) | (859) | (1,823) | (1,883) | (341) | (57,749) | ||||||||||||||||||||||||||||||||||
Charge-offs | (15,337) | (8,726) | (39) | (1,290) | (3,309) | (2,251) | (30,952) | ||||||||||||||||||||||||||||||||||
Transfers to OREO | — | — | — | — | (274) | — | (274) | ||||||||||||||||||||||||||||||||||
Transfers to accrual status | (62) | (925) | — | (223) | (154) | — | (1,364) | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 30,141 | 52,815 | 901 | 35,269 | 8,900 | 15,640 | 143,666 | ||||||||||||||||||||||||||||||||||
Additions | 27,627 | 66,212 | 1,104 | 6,151 | 6,363 | 1,188 | 108,645 | ||||||||||||||||||||||||||||||||||
Payments | (27,260) | (27,394) | (637) | (5,440) | (2,941) | (1,390) | (65,062) | ||||||||||||||||||||||||||||||||||
Charge-offs | (2,390) | (12,473) | — | (66) | (4,412) | (2,131) | (21,472) | ||||||||||||||||||||||||||||||||||
Transfers to OREO | (22) | (3,461) | — | — | (297) | — | (3,780) | ||||||||||||||||||||||||||||||||||
Transfers to accrual status | (980) | (5,538) | — | (9,620) | (1,416) | — | (17,554) | ||||||||||||||||||||||||||||||||||
Balance of non-accrual loans at December 31, 2022 | $ | 27,116 | $ | 70,161 | $ | 1,368 | $ | 26,294 | $ | 6,197 | $ | 13,307 | $ | 144,443 |
December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Non-accrual loans (1) (2) (3) | $ | 144,443 | $ | 143,666 | $ | 137,198 | |||||||||||
Loans 90 days or more past due and still accruing (2) | 27,463 | 8,453 | 9,929 | ||||||||||||||
Total non-performing loans and leases | 171,906 | 152,119 | 147,127 | ||||||||||||||
OREO (4) | 5,790 | 1,817 | 4,178 | ||||||||||||||
Total non-performing assets | $ | 177,696 | $ | 153,936 | $ | 151,305 |
December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Real estate – commercial mortgage | $ | 72,634 | $ | 54,044 | $ | 52,647 | |||||||||||
Commercial and industrial | 28,288 | 30,629 | 32,609 | ||||||||||||||
Real estate – residential mortgage | 46,509 | 39,399 | 30,794 | ||||||||||||||
Real estate – home equity | 8,809 | 10,924 | 1,550 | ||||||||||||||
Real estate – construction | 1,368 | 901 | 12,341 | ||||||||||||||
Consumer | 991 | 582 | 749 | ||||||||||||||
Equipment lease financing | 13,307 | 15,640 | 16,437 | ||||||||||||||
Total non-performing loans | $ | 171,906 | $ | 152,119 | $ | 147,127 | |||||||||||
Non-performing loans to total loans | 0.85 | % | 0.83 | % | 0.78 | % |
December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Real estate – commercial mortgage | $ | 3,255 | $ | 3,464 | $ | 28,451 | |||||||||||
Commercial and industrial | 1,809 | 1,857 | 6,982 | ||||||||||||||
Real estate – residential mortgage | 13,804 | 11,948 | 18,602 | ||||||||||||||
Real estate – home equity | 10,717 | 12,218 | 14,391 | ||||||||||||||
Consumer | — | 5 | — | ||||||||||||||
Total accruing TDRs | 29,585 | 29,492 | 68,426 | ||||||||||||||
Non-accrual TDRs(1) | 31,853 | 55,945 | 35,755 | ||||||||||||||
Total TDRs | $ | 61,438 | $ | 85,437 | $ | 104,181 |
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Commercial properties | $ | 3,881 | $ | 943 | $ | 1,730 | |||||||||||
Residential properties | 482 | 669 | 1,496 | ||||||||||||||
Undeveloped land | 1,427 | 205 | 952 | ||||||||||||||
Total OREO | $ | 5,790 | $ | 1,817 | $ | 4,178 |
Special Mention(1) | Increase (Decrease) | Substandard or Lower(2) | Increase (Decrease) | Total Criticized and Classified Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ | % | 2022 | 2021 | $ | % | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 306,381 | $ | 387,279 | $ | (80,898) | (20.9)% | $ | 184,014 | $ | 331,096 | $ | (147,082) | (44.4)% | $ | 490,395 | $ | 718,375 | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 133,943 | 142,369 | (8,426) | (5.9) | 95,546 | 152,219 | (56,673) | (37.2) | 229,489 | 294,588 | |||||||||||||||||||||||||||||||||||||||||||||||||
Real estate - construction(3) | 21,603 | 58,841 | (37,238) | (63.3) | 10,601 | 6,324 | 4,277 | 67.6 | 32,204 | 65,165 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 461,927 | $ | 588,489 | $ | (126,562) | (21.5)% | $ | 290,161 | $ | 489,639 | $ | (199,478) | (40.7)% | $ | 752,088 | $ | 1,078,128 | |||||||||||||||||||||||||||||||||||||||||
% of total risk rated loans | 3.5% | 4.7% | 2.2% | 3.9% | 5.7% | 8.6% |
Delinquent(1) | Non-performing(2) | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer and real estate - home equity | $ | 16,141 | 0.90 | % | $ | 9,960 | 0.63 | % | $ | 9,800 | 0.54 | % | $ | 11,706 | 0.74 | % | $ | 25,941 | 1.44 | % | $ | 21,666 | 1.37 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate - residential mortgage | 65,270 | 1.38 | 25,877 | 0.67 | 46,509 | 0.98 | 39,542 | 1.03 | 111,779 | 2.36 | 65,419 | 1.70 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate - construction - other | 3,520 | 0.28 | 1,318 | 0.11 | — | — | 173 | 0.02 | 3,520 | 0.28 | 1,491 | 0.13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment lease financing | 470 | 0.16 | 253 | 0.09 | 13,307 | 4.45 | 15,641 | 5.83 | 13,777 | 4.61 | 15,894 | 5.92 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 85,401 | 1.05 | % | $ | 37,408 | 0.56 | % | $ | 69,616 | 0.86 | % | $ | 67,062 | 0.98 | % | $ | 155,017 | 1.92 | % | $ | 104,470 | 1.54 | % |
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Net loans | $ | 20,279,547 | $ | 18,325,350 | $ | 18,900,820 | |||||||||||
Average balance of net loans | $ | 19,152,740 | $ | 18,627,787 | $ | 18,270,390 | |||||||||||
Balance of ACL at beginning of period | $ | 249,001 | $ | 277,567 | $ | 163,620 | |||||||||||
CECL Day 1 provision expense | 7,954 | — | — | ||||||||||||||
Initial purchased credit deteriorated loans | 1,135 | — | — | ||||||||||||||
Impact of adopting CECL on January 1, 2020 | — | — | 45,724 | ||||||||||||||
Loans charged off: | |||||||||||||||||
Commercial and industrial | (2,390) | (15,337) | (18,915) | ||||||||||||||
Real estate – commercial mortgage | (12,473) | (8,726) | (4,225) | ||||||||||||||
Consumer and real estate - home equity | (4,412) | (3,309) | (4,593) | ||||||||||||||
Real estate – residential mortgage | (66) | (1,290) | (620) | ||||||||||||||
Real estate – construction | — | (39) | (17) | ||||||||||||||
Equipment lease financing and other | (2,131) | (2,251) | (2,187) | ||||||||||||||
Total loans charged off | (21,472) | (30,952) | (30,557) | ||||||||||||||
Recoveries of loans previously charged off: | |||||||||||||||||
Commercial and industrial | 5,893 | 9,587 | 11,396 | ||||||||||||||
Real estate – commercial mortgage | 3,860 | 2,474 | 1,027 | ||||||||||||||
Consumer and real estate - home equity | 2,581 | 2,345 | 2,379 | ||||||||||||||
Real estate – residential mortgage | 425 | 375 | 491 | ||||||||||||||
Real estate – construction | 574 | 1,412 | 5,122 | ||||||||||||||
Equipment lease financing and other | 759 | 953 | 605 | ||||||||||||||
Total recoveries | 14,092 | 17,146 | 21,020 | ||||||||||||||
Net loans charged off | (7,380) | (13,806) | (9,537) | ||||||||||||||
Provision for credit losses | 18,656 | (14,760) | 77,760 | ||||||||||||||
Balance of ACL at end of period | $ | 269,366 | $ | 249,001 | $ | 277,567 | |||||||||||
Provision for OBS credit exposures | $ | 1,411 | $ | 160 | $ | (840) | |||||||||||
Reserve for OBS credit exposures(1) | $ | 16,328 | $ | 14,533 | $ | 14,373 | |||||||||||
Selected Asset Quality Ratios %: | |||||||||||||||||
Net charge-offs to average loans | 0.04 | % | 0.07 | % | 0.05 | % | |||||||||||
ACL - loans to total net loans | 1.33 | 1.36 | 1.47 | ||||||||||||||
Non-performing assets(2) to total assets | 0.66 | 0.60 | 0.58 | ||||||||||||||
Non-accrual loans to total net loans | 0.71 | 0.78 | 0.72 | ||||||||||||||
ACL - loans to non-performing loans | 157 | 164 | 189 | ||||||||||||||
ACL - loans to non-accrual loans | 186 | 173 | 202 | ||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
ACL - loans | % In Each Loan Category(1) | ACL - loans | % In Each Loan Category(1) | ACL - loans | % In Each Loan Category(1) | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 69,456 | 37.9 | % | $ | 87,970 | 39.7 | % | $ | 103,425 | 37.6 | % | |||||||||||||||||||||||
Commercial and industrial | 70,116 | 22.0 | 67,056 | 22.9 | 74,771 | 30.0 | |||||||||||||||||||||||||||||
Real estate - residential mortgage | 83,250 | 23.3 | 54,236 | 21.0 | 51,995 | 16.6 | |||||||||||||||||||||||||||||
Consumer, home equity, equipment lease financing and overdrafts | 35,801 | 10.5 | 26,798 | 10.2 | 31,770 | 10.3 | |||||||||||||||||||||||||||||
Real estate - construction | 10,743 | 6.3 | 12,941 | 6.2 | 15,608 | 5.5 | |||||||||||||||||||||||||||||
Total | $ | 269,366 | 100.0 | % | $ | 249,001 | 100.0 | % | $ | 277,569 | 100.0 | % |
Increase (Decrease) | |||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 7,006,388 | $ | 7,370,963 | $ | (364,575) | (4.9) | % | |||||||||||||||
Interest-bearing demand | 5,410,903 | 5,819,539 | (408,636) | (7.0) | |||||||||||||||||||
Savings and money market deposits | 6,434,621 | 6,403,995 | 30,626 | 0.5 | |||||||||||||||||||
Total demand and savings | 18,851,912 | 19,594,497 | (742,585) | (3.8) | |||||||||||||||||||
Brokered deposits | 208,416 | 251,526 | (43,110) | (17.1) | |||||||||||||||||||
Time deposits | 1,589,210 | 1,727,476 | (138,266) | (8.0) | |||||||||||||||||||
Total deposits | $ | 20,649,538 | $ | 21,573,499 | $ | (923,961) | (4.3) | % |
Increase (Decrease) | |||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Federal funds purchased | $ | 191,000 | $ | — | $ | 191,000 | N/M | ||||||||||||||||
Federal Home Loan Bank advances | 1,250,000 | — | 1,250,000 | N/M | |||||||||||||||||||
Senior debt and subordinated debt | 539,634 | 620,406 | (80,772) | (13.0) | |||||||||||||||||||
Other borrowings(1) | 890,573 | 417,703 | 472,870 | 113.2 | |||||||||||||||||||
Total borrowings | $ | 2,871,207 | $ | 1,038,109 | $ | 1,833,098 | N/M |
2022 | 2021 | Regulatory Minimum for Capital Adequacy | Fully Phased-in, with Capital Conservation Buffers | ||||||||||||||||||||
Total Risk-Based Capital (to Risk-Weighted Assets) | 13.6% | 14.1% | 8.0% | 10.5% | |||||||||||||||||||
Tier I Risk-Based Capital (to Risk-Weighted Assets) | 10.9% | 10.9% | 6.0% | 8.5% | |||||||||||||||||||
Common Equity Tier I (to Risk-Weighted Assets) | 10.0% | 9.9% | 4.5% | 7.0% | |||||||||||||||||||
Tier I Leverage Capital (to Average Assets) | 9.5% | 8.6% | 4.0% | 4.0% |
Commercial and industrial | $ | 4,832,858 | |||
Real estate - commercial mortgage and real estate - construction | 1,972,505 | ||||
Real estate - home equity | 1,890,258 | ||||
Total commitments to extend credit | $ | 8,695,621 | |||
Standby letters of credit | $ | 260,829 | |||
Commercial letters of credit | 49,288 | ||||
Total letters of credit | $ | 310,117 |
Rate Shock(1) | Annual change in net interest income | % Change in net interest income | |||||||||
+400 bps | + $80.0 million | + 8.2% | |||||||||
+300 bps | + $62.0 million | + 6.3% | |||||||||
+200 bps | + $45.2 million | + 4.6% | |||||||||
+100 bps | + $25.4 million | + 2.6% | |||||||||
-100 bps | - $37.3 million | - 3.8% | |||||||||
-200 bps | - $84.5 million | - 8.6% |
Maturing | |||||||||||||||||||||||||||||||||||||||||||||||
Within One Year | After One But Within Five Years | After Five But Within Ten Years | After Ten Years | ||||||||||||||||||||||||||||||||||||||||||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||||||||||||
Available for sale | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government securities | $ | 121,579 | 0.65 | % | $ | 96,906 | 2.40 | % | $ | — | — | % | $ | — | — | % | |||||||||||||||||||||||||||||||
U.S. Government sponsored agency securities | — | — | 1,008 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
State and municipal(1) | 6,644 | 4.37 | 16,668 | 3.92 | 129,934 | 4.05 | 952,466 | 3.86 | |||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 15,240 | 5.28 | 39,954 | 4.08 | 367,115 | 4.01 | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 143,463 | 1.29 | % | $ | 154,536 | 3.01 | % | $ | 497,049 | 4.02 | % | $ | 952,466 | 3.86 | % | |||||||||||||||||||||||||||||||
Weighted | |||||||||||||||||
Amount | Yield | Average Life | |||||||||||||||
(dollars in thousands) | (in years) | ||||||||||||||||
Available for sale | |||||||||||||||||
Residential mortgage-backed securities | $ | 212,698 | 2.80 | % | 10.9 | ||||||||||||
Commercial mortgage-backed securities | 552,522 | 2.48 | 4.5 | ||||||||||||||
Collateralized mortgage obligations | 134,033 | 2.76 | 4.4 | ||||||||||||||
Held to maturity | |||||||||||||||||
Residential mortgage-backed securities | $ | 457,325 | 2.00 | % | 8.9 | ||||||||||||
Commercial mortgage-backed securities | 863,931 | 1.53 | 6.7 |
One Year or Less | One Through Five Years | More Than Five Years | Total | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Commercial and industrial: | |||||||||||||||||||||||
Adjustable and floating rate | $ | 990,649 | $ | 2,028,595 | $ | 403,684 | $ | 3,422,928 | |||||||||||||||
Fixed rate | 529,764 | 423,430 | 101,415 | 1,054,609 | |||||||||||||||||||
Total commercial and industrial | $ | 1,520,413 | $ | 2,452,025 | $ | 505,099 | $ | 4,477,537 | |||||||||||||||
Real estate – mortgage(1): | |||||||||||||||||||||||
Adjustable and floating rate | $ | 1,554,976 | $ | 4,867,831 | $ | 2,696,644 | $ | 9,119,451 | |||||||||||||||
Fixed rate | 875,849 | 1,899,138 | 1,639,514 | 4,414,501 | |||||||||||||||||||
Total real estate - mortgage(1) | $ | 2,430,825 | $ | 6,766,969 | $ | 4,336,158 | $ | 13,533,952 | |||||||||||||||
Real estate – construction: | |||||||||||||||||||||||
Adjustable and floating rate | $ | 327,554 | $ | 492,810 | $ | 158,364 | $ | 978,728 | |||||||||||||||
Fixed rate | 261,464 | 24,066 | 5,667 | 291,197 | |||||||||||||||||||
Total real estate – construction | $ | 589,018 | $ | 516,876 | $ | 164,031 | $ | 1,269,925 | |||||||||||||||
Consumer, lease financing and other: | |||||||||||||||||||||||
Adjustable and floating rate | $ | 12,175 | $ | 39,137 | $ | — | $ | 51,312 | |||||||||||||||
Fixed rate | 265,137 | 574,459 | 136,602 | 976,198 | |||||||||||||||||||
Total consumer, lease financing and other | $ | 277,312 | $ | 613,596 | $ | 136,602 | $ | 1,027,510 | |||||||||||||||
Unearned income | — | (29,377) | — | (29,377) | |||||||||||||||||||
Total | $ | 4,817,568 | $ | 10,320,089 | $ | 5,141,890 | $ | 20,279,547 |
Year | |||||
2023 | $ | 966,235 | |||
2024 | 234,681 | ||||
2025 | 285,527 | ||||
2026 | 19,704 | ||||
2027 | 18,474 | ||||
Thereafter | 64,589 | ||||
Total | $ | 1,589,210 |
Three months or less | $ | 54,013 | |||
Over three through six months | 24,351 | ||||
Over six through twelve months | 61,441 | ||||
Over twelve months | 74,976 | ||||
Total | $ | 214,781 |
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(dollars in thousands, except per-share data) |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 126,898 | $ | 172,276 | |||||||
Interest-bearing deposits with other banks | 555,023 | 1,466,338 | |||||||||
Cash and cash equivalents | 681,921 | 1,638,614 | |||||||||
FRB and FHLB stock | 130,186 | 57,635 | |||||||||
Loans held for sale | 7,264 | 35,768 | |||||||||
Investment securities: | |||||||||||
AFS, at estimated fair value | 2,646,767 | 3,187,390 | |||||||||
HTM, at amortized cost | 1,321,256 | 980,384 | |||||||||
Net loans | 20,279,547 | 18,325,350 | |||||||||
Less: ACL - loans | (269,366) | (249,001) | |||||||||
Loans, net | 20,010,181 | 18,076,349 | |||||||||
Net premises and equipment | 225,141 | 220,357 | |||||||||
Accrued interest receivable | 91,579 | 57,451 | |||||||||
Goodwill and net intangible assets | 560,824 | 538,053 | |||||||||
Other assets | 1,256,583 | 1,004,397 | |||||||||
Total Assets | $ | 26,931,702 | $ | 25,796,398 | |||||||
LIABILITIES | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing | $ | 7,006,388 | $ | 7,370,963 | |||||||
Interest-bearing | 13,643,150 | 14,202,536 | |||||||||
Total Deposits | 20,649,538 | 21,573,499 | |||||||||
Borrowings: | |||||||||||
Federal funds purchased | 191,000 | — | |||||||||
Federal Home Loan Bank advances | 1,250,000 | — | |||||||||
Senior debt and subordinated debt | 539,634 | 620,406 | |||||||||
Other borrowings | 890,573 | 417,703 | |||||||||
Total borrowings | 2,871,207 | 1,038,109 | |||||||||
Accrued interest payable | 10,185 | 7,000 | |||||||||
Other liabilities | 821,015 | 465,110 | |||||||||
Total Liabilities | $ | 24,351,945 | $ | 23,083,718 | |||||||
SHAREHOLDERS' EQUITY | |||||||||||
Preferred stock, no par value, 10.0 million shares authorized, Series A, 0.2 million shares authorized and issued as of December 31, 2022 and 2021, liquidation preference of $1,000 per share | 192,878 | 192,878 | |||||||||
Common stock, 2.50 par value, 600.0 million shares authorized, 224.6 million shares issued as of December 31, 2022 and 223.9 million issued as of December 31, 2021 | 561,511 | 559,766 | |||||||||
Additional paid-in capital | 1,541,840 | 1,519,873 | |||||||||
Retained earnings | 1,450,758 | 1,282,383 | |||||||||
Accumulated other comprehensive (loss) income | (385,476) | 27,411 | |||||||||
Treasury stock, at cost, 57.0 million shares in 2022 and 63.4 million shares in 2021 | (781,754) | (869,631) | |||||||||
Total Shareholders' Equity | 2,579,757 | 2,712,680 | |||||||||
Total Liabilities and Shareholders' Equity | $ | 26,931,702 | $ | 25,796,398 | |||||||
See Notes to Consolidated Financial Statements |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||
(in thousands, except per-share data) |
2022 | 2021 | 2020 | |||||||||||||||
Interest Income | |||||||||||||||||
Loans, including fees | $ | 758,609 | $ | 638,595 | $ | 656,077 | |||||||||||
Investment securities | 98,115 | 79,821 | 79,220 | ||||||||||||||
Loans held for sale | 866 | 1,302 | 2,077 | ||||||||||||||
Other interest income | 7,248 | 3,694 | 5,504 | ||||||||||||||
Total Interest Income | 864,838 | 723,412 | 742,878 | ||||||||||||||
Interest Expense | |||||||||||||||||
Deposits | 43,829 | 30,005 | 70,046 | ||||||||||||||
Federal funds purchased | 2,967 | — | 541 | ||||||||||||||
Federal Home Loan Bank advances | 7,334 | 2,286 | 12,913 | ||||||||||||||
Senior debt and subordinated debt | 22,257 | 26,784 | 28,024 | ||||||||||||||
Other borrowings | 6,817 | 607 | 2,147 | ||||||||||||||
Total Interest Expense | 83,204 | 59,682 | 113,671 | ||||||||||||||
Net Interest Income | 781,634 | 663,730 | 629,207 | ||||||||||||||
Provision for credit losses | 28,021 | (14,600) | 76,920 | ||||||||||||||
Net Interest Income After Provision for Credit Losses | 753,613 | 678,330 | 552,287 | ||||||||||||||
Non-Interest Income | |||||||||||||||||
Commercial banking | 75,779 | 68,689 | 70,286 | ||||||||||||||
Consumer banking | 49,496 | 45,544 | 41,598 | ||||||||||||||
Wealth management | 72,843 | 71,798 | 59,058 | ||||||||||||||
Mortgage banking | 14,204 | 33,576 | 42,309 | ||||||||||||||
Other | 14,835 | 20,622 | 13,084 | ||||||||||||||
Non-Interest Income Before Investment Securities Gains, Net | 227,157 | 240,229 | 226,335 | ||||||||||||||
Investment securities gains (losses), net | (27) | 33,516 | 3,053 | ||||||||||||||
Total Non-Interest Income | 227,130 | 273,745 | 229,388 | ||||||||||||||
Non-Interest Expense | |||||||||||||||||
Salaries and employee benefits | 356,884 | 329,138 | 324,395 | ||||||||||||||
Data processing and software | 60,255 | 56,440 | 48,073 | ||||||||||||||
Net occupancy | 56,195 | 53,799 | 53,013 | ||||||||||||||
Other outside services | 37,152 | 34,194 | 31,432 | ||||||||||||||
State taxes | 15,113 | 18,793 | 12,613 | ||||||||||||||
Equipment | 14,033 | 13,807 | 13,885 | ||||||||||||||
FDIC insurance | 12,547 | 10,665 | 8,865 | ||||||||||||||
Professional fees | 9,123 | 9,647 | 12,835 | ||||||||||||||
Marketing | 6,885 | 5,275 | 5,127 | ||||||||||||||
Intangible amortization | 1,731 | 589 | 529 | ||||||||||||||
Debt extinguishment | — | 33,249 | 2,878 | ||||||||||||||
Merger-related expenses | 10,328 | — | — | ||||||||||||||
Other | 53,482 | 52,234 | 65,795 | ||||||||||||||
Total Non-Interest Expense | 633,728 | 617,830 | 579,440 | ||||||||||||||
Income Before Income Taxes | 347,015 | 334,245 | 202,235 | ||||||||||||||
Income taxes | 60,034 | 58,748 | 24,195 | ||||||||||||||
Net Income | 286,981 | 275,497 | 178,040 | ||||||||||||||
Preferred stock dividends | (10,248) | (10,277) | (2,135) | ||||||||||||||
Net Income Available to Common Shareholders | $ | 276,733 | $ | 265,220 | $ | 175,905 | |||||||||||
PER SHARE: | |||||||||||||||||
Net income available to common shareholders (basic) | $ | 1.69 | $ | 1.63 | $ | 1.08 | |||||||||||
Net income available to common shareholders (diluted) | 1.67 | 1.62 | 1.08 | ||||||||||||||
Cash dividends | 0.66 | 0.64 | 0.56 | ||||||||||||||
See Notes to Consolidated Financial Statements |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||
(dollars in thousands) |
2022 | 2021 | 2020 | ||||||||||||||||||
Net Income | $ | 286,981 | $ | 275,497 | $ | 178,040 | ||||||||||||||
Other Comprehensive Income/(Loss), net of tax: | ||||||||||||||||||||
Unrealized gains (losses) on AFS investment securities: | ||||||||||||||||||||
Unrealized gains (losses) on securities | (312,169) | (17,948) | 65,651 | |||||||||||||||||
Reclassification adjustment for securities gains (losses) included in net income | (20) | (25,905) | (2,359) | |||||||||||||||||
Amortization of net unrealized gains (losses) on AFS securities transferred to HTM | (44,483) | 2,690 | 3,448 | |||||||||||||||||
Net unrealized gains (losses) on AFS investment securities | (356,672) | (41,163) | 66,740 | |||||||||||||||||
Unrealized (losses) gains on interest rate derivatives used in cash flow hedges: | ||||||||||||||||||||
Net unrealized holding gains (losses) arising during the period | (62,963) | (2,670) | — | |||||||||||||||||
Reclassification adjustment for net gains (losses) realized in net income | 6,004 | (2,147) | — | |||||||||||||||||
Net unrealized gains (losses) on interest rate derivatives used in cash flow hedges | (56,959) | (4,817) | — | |||||||||||||||||
Defined benefit pension plan and postretirement benefits: | ||||||||||||||||||||
Unrecognized pension and postretirement income (cost) | 644 | 7,144 | (2,532) | |||||||||||||||||
Amortization of net unrecognized pension and postretirement income (loss) | 100 | 1,156 | 1,020 | |||||||||||||||||
Net unrealized (losses) gains on defined benefit pension and postretirement plans | 744 | 8,300 | (1,512) | |||||||||||||||||
Other Comprehensive Income (Loss) | (412,887) | (37,680) | 65,228 | |||||||||||||||||
Total Comprehensive Income (Loss) | $ | (125,906) | $ | 237,817 | $ | 243,268 | ||||||||||||||
See Notes to Consolidated Financial Statements |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | ||||||||||||||
(dollars in thousands, except per share data) |
Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Retained Earnings | Treasury Stock | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | — | $ | — | 164,218 | $ | 556,110 | $ | 1,499,681 | $ | 1,079,391 | $ | (137) | $ | (792,869) | $ | 2,342,176 | |||||||||||||||||||||||||||||||||||||
Net income | 178,040 | 178,040 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 65,228 | 65,228 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock issued | 200 | 192,878 | 192,878 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued | 1,040 | 1,807 | 907 | 4,661 | 7,375 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation awards | 7,529 | 7,529 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | (2,908) | (39,748) | (39,748) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment for CECL(1) | (43,807) | (43,807) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividend | (2,135) | (2,135) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock cash dividends - $0.56 per share | (90,708) | (90,708) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 200 | $ | 192,878 | 162,350 | $ | 557,917 | $ | 1,508,117 | $ | 1,120,781 | $ | 65,091 | $ | (827,956) | $ | 2,616,828 | |||||||||||||||||||||||||||||||||||||
Net income | 275,497 | 275,497 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (37,680) | (37,680) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued | 943 | 1,849 | 3,354 | 2,234 | 7,437 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation awards | 8,402 | 8,402 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | (2,803) | (43,909) | (43,909) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividend | (10,277) | (10,277) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock cash dividends - $0.64 per share | (103,618) | (103,618) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 200 | $ | 192,878 | 160,490 | $ | 559,766 | $ | 1,519,873 | $ | 1,282,383 | $ | 27,411 | $ | (869,631) | $ | 2,712,680 | |||||||||||||||||||||||||||||||||||||
Net income | 286,981 | 286,981 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (412,887) | (412,887) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued | 900 | 1,745 | 3,420 | 2,711 | 7,876 | ||||||||||||||||||||||||||||||||||||||||||||||||
Reissuance of treasury stock pursuant to acquisition | 6,209 | 4,547 | 85,166 | 89,713 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation awards | 14,000 | 14,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividend | (10,248) | (10,248) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock cash dividends - $0.66 per share | (108,358) | (108,358) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | 200 | $ | 192,878 | 167,599 | $ | 561,511 | $ | 1,541,840 | $ | 1,450,758 | $ | (385,476) | $ | (781,754) | $ | 2,579,757 | |||||||||||||||||||||||||||||||||||||
See Notes to Consolidated Financial Statements |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
(dollars in thousands) |
2022 | 2021 | 2020 | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net income | $ | 286,981 | $ | 275,497 | $ | 178,040 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Provision for credit losses | 28,021 | (14,600) | 76,920 | ||||||||||||||
Depreciation and amortization of premises and equipment | 30,201 | 28,802 | 28,803 | ||||||||||||||
Net amortization of investment securities premiums | 12,824 | 16,031 | 12,222 | ||||||||||||||
Investment securities losses (gains), net | 27 | (33,516) | (3,053) | ||||||||||||||
Loss (gain) on sales of mortgage loans held for sale | (8,816) | (24,379) | (53,599) | ||||||||||||||
Proceeds from sales of mortgage loans held for sale | 455,607 | 1,050,943 | 1,536,174 | ||||||||||||||
Originations of mortgage loans held for sale | (418,287) | (978,446) | (1,528,633) | ||||||||||||||
Intangible amortization | 1,731 | 589 | 529 | ||||||||||||||
Amortization of issuance costs and discounts on long-term borrowings | 724 | 1,846 | 1,128 | ||||||||||||||
Debt extinguishment costs | — | 33,249 | 2,877 | ||||||||||||||
Stock-based compensation | 14,000 | 8,402 | 7,529 | ||||||||||||||
Change in deferred federal income tax | (117,849) | (417) | (29,173) | ||||||||||||||
Change in life insurance cash surrender value | (92,228) | (90,105) | (26,348) | ||||||||||||||
Other changes, net | 405,331 | 68,376 | (46,051) | ||||||||||||||
Total adjustments | 311,285 | 66,775 | (20,675) | ||||||||||||||
Net cash provided by (used in) operating activities | 598,266 | 342,272 | 157,365 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
Proceeds from sales of AFS securities | 196,411 | 359,137 | 215,150 | ||||||||||||||
Proceeds from principal repayments and maturities of AFS securities | 583,444 | 469,393 | 430,845 | ||||||||||||||
Proceeds from principal repayments and maturities of HTM securities | 109,759 | 117,958 | 93,823 | ||||||||||||||
Purchase of AFS securities | (845,744) | (1,309,470) | (1,134,380) | ||||||||||||||
Purchase of HTM securities | (30,959) | (443,081) | — | ||||||||||||||
Sale of Visa Shares | — | 33,962 | — | ||||||||||||||
Decrease (increase) of FRB and FHLB stock | (72,551) | 34,494 | 5,293 | ||||||||||||||
Net decrease (increase) in loans | (1,407,289) | 561,664 | (2,072,831) | ||||||||||||||
Net purchases of premises and equipment | (21,246) | (17,679) | (20,237) | ||||||||||||||
Net cash paid for acquisition | (21,811) | (1,982) | (1,884) | ||||||||||||||
Net change in tax credit investments | (29,071) | (18,363) | (15,259) | ||||||||||||||
Net cash provided by (used in) investing activities | (1,539,058) | (213,967) | (2,499,480) | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
Net increase (decrease) in demand and savings deposits | (1,198,319) | 1,315,139 | 3,951,905 | ||||||||||||||
Net increase (decrease) in time deposits | (257,823) | (580,847) | (506,611) | ||||||||||||||
Net increase (decrease) in other borrowings | 1,629,870 | (212,682) | (132,277) | ||||||||||||||
Repayments of senior debt and subordinated debt | (81,496) | (710,633) | (85,410) | ||||||||||||||
Proceeds from senior debt and subordinated debt | — | — | 375,000 | ||||||||||||||
Net proceeds from issuance of preferred stock | — | — | 192,878 | ||||||||||||||
Net proceeds from issuance of common stock | 7,876 | 7,437 | 7,375 | ||||||||||||||
Dividends paid | (116,009) | (112,028) | (90,956) | ||||||||||||||
Acquisition of treasury stock | — | (43,909) | (39,748) | ||||||||||||||
Net cash provided by (used in) financing activities | (15,901) | (337,523) | 3,672,156 | ||||||||||||||
Net increase (decrease) in Cash and Cash Equivalents | (956,693) | (209,218) | 1,330,041 | ||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 1,638,614 | 1,847,832 | 517,791 | ||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 681,921 | $ | 1,638,614 | $ | 1,847,832 | |||||||||||
Supplemental Disclosures of Cash Flow Information: | |||||||||||||||||
Cash paid during the period for: | |||||||||||||||||
Interest | $ | 80,019 | $ | 63,047 | $ | 112,140 | |||||||||||
Income taxes | 32,669 | 27,870 | 16,190 | ||||||||||||||
Supplemental Schedule of Certain Noncash Activities: | |||||||||||||||||
Transfer of AFS securities to HTM securities | $ | 479,008 | $ | 376,165 | $ | — | |||||||||||
See Notes to Consolidated Financial Statements |
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
NOTE 2 - BUSINESS COMBINATIONS |
Fair Value | ||||||||
(in thousands, except per share data) | ||||||||
Consideration transferred: | ||||||||
Common stock shares issued (6,208,516) | $ | 89,713 | ||||||
Cash paid to Prudential Bancorp shareholders | 29,343 | |||||||
Value of consideration | 119,056 | |||||||
Assets acquired: | ||||||||
Cash and due from banks | 7,532 | |||||||
Investment securities | 287,126 | |||||||
Loans, net | 554,288 | |||||||
Premises and equipment | 13,738 | |||||||
Other assets | 70,720 | |||||||
Total assets | 933,404 | |||||||
Liabilities assumed: | ||||||||
Deposits | 532,180 | |||||||
Borrowings(1) | 284,000 | |||||||
Other liabilities | 14,441 | |||||||
Total liabilities | 830,621 | |||||||
Net assets acquired: | 102,783 | |||||||
Goodwill resulting from acquisition of Prudential Bancorp | $ | 16,273 | ||||||
July 1, 2022 | ||||||||||||||
Unpaid Principal Balance | Fair Value | |||||||||||||
(dollars in thousands) | ||||||||||||||
Real estate - commercial mortgage | $ | 224,904 | $ | 216,613 | ||||||||||
Commercial and industrial | 63,560 | 62,050 | ||||||||||||
Real-estate - residential mortgage | 177,327 | 169,098 | ||||||||||||
Real-estate - home equity | 6,034 | 5,812 | ||||||||||||
Real-estate - construction | 98,963 | 98,546 | ||||||||||||
Consumer | 2,306 | 2,286 | ||||||||||||
Total acquired loans | $ | 573,094 | $ | 554,405 |
July 1, 2022 | ||||||||
(dollars in thousands) | ||||||||
Book balance of loans with deteriorated credit quality at acquisition | $ | 27,057 | ||||||
Allowance for credit losses at acquisition | (1,135) | |||||||
Non-credit related discount | (130) | |||||||
Total initial purchased credit deteriorated loans | $ | 25,792 |
Twelve Months Ended December 31 | |||||
2022 | |||||
(dollars in thousands) | |||||
Goodwill at December 31, 2021 | $ | 534,266 | |||
Goodwill from Prudential Bancorp acquisition | 16,273 | ||||
Goodwill at December 31, 2022 | $ | 550,539 |
Twelve Months Ended December 31 | ||||||||
2022 | ||||||||
(dollars in thousands) | ||||||||
Salaries and employee benefits | $ | 938 | ||||||
Data processing and software | 1,412 | |||||||
Net occupancy | 1,658 | |||||||
Other outside services | 225 | |||||||
Professional fees | 3,053 | |||||||
Marketing | 95 | |||||||
Charitable donation | 2,000 | |||||||
Other | 947 | |||||||
Total Merger-related expenses | $ | 10,328 |
Three Months Ended September 30, 2022 | |||||
(Unaudited) | |||||
(dollars in thousands) | |||||
Total interest income | $ | 10,871 | |||
Total interest expense | 2,733 | ||||
Net interest income | 8,138 | ||||
Provisions for credit losses | 7,571 | ||||
Net Interest Income After Provision for Credit Losses | 567 | ||||
Total noninterest income | 197 | ||||
Total noninterest expense | 3,583 | ||||
Income Before Income Taxes | (2,819) | ||||
Income taxes | (753) | ||||
Net Loss | $ | (2,066) |
Year Ended December 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
(dollars in thousands) | ||||||||||||||
Net interest income | $ | 801,907 | $ | 687,216 | ||||||||||
Provision for credit losses | 34,041 | (14,400) | ||||||||||||
Net Interest Income After Provision for Credit Losses | 767,866 | 701,616 | ||||||||||||
Total noninterest income | 232,054 | 277,217 | ||||||||||||
Total noninterest expenses | 663,133 | 635,568 | ||||||||||||
Income Before Income Taxes | 336,787 | 343,265 | ||||||||||||
Income tax expense | 57,249 | 59,985 | ||||||||||||
Net Income | $ | 279,538 | $ | 283,280 | ||||||||||
NOTE 3 – RESTRICTIONS ON CASH AND CASH EQUIVALENTS |
NOTE 4 – INVESTMENT SECURITIES |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
2022 | |||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||
U.S. Government securities | $ | 226,140 | $ | — | $ | (7,655) | $ | 218,485 | |||||||||||||||
U.S. Government-sponsored agency securities | 1,050 | — | (42) | 1,008 | |||||||||||||||||||
State and municipal securities | 1,284,245 | 283 | (178,816) | 1,105,712 | |||||||||||||||||||
Corporate debt securities | 459,792 | — | (37,483) | 422,309 | |||||||||||||||||||
Collateralized mortgage obligations | 147,155 | — | (13,122) | 134,033 | |||||||||||||||||||
Residential mortgage-backed securities | 242,527 | 18 | (29,847) | 212,698 | |||||||||||||||||||
Commercial mortgage-backed securities | 631,604 | — | (79,082) | 552,522 | |||||||||||||||||||
Total | $ | 2,992,513 | $ | 301 | $ | (346,047) | $ | 2,646,767 | |||||||||||||||
Held to Maturity | |||||||||||||||||||||||
Residential mortgage-backed securities | $ | 457,325 | $ | — | $ | (57,480) | $ | 399,845 | |||||||||||||||
Commercial mortgage-backed securities | 863,931 | — | (138,727) | 725,204 | |||||||||||||||||||
Total | $ | 1,321,256 | $ | — | $ | (196,207) | $ | 1,125,049 | |||||||||||||||
2021 | |||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||
U.S. Government securities | $ | 127,831 | $ | — | $ | (213) | $ | 127,618 | |||||||||||||||
State and municipal securities | 1,139,187 | 50,161 | (678) | 1,188,670 | |||||||||||||||||||
Corporate debt securities | 373,482 | 13,009 | (358) | 386,133 | |||||||||||||||||||
Collateralized mortgage obligations | 206,532 | 3,581 | (754) | 209,359 | |||||||||||||||||||
Residential mortgage-backed securities | 231,607 | 1,224 | (3,036) | 229,795 | |||||||||||||||||||
Commercial mortgage-backed securities | 974,541 | 6,141 | (9,534) | 971,148 | |||||||||||||||||||
Auction rate securities | 76,350 | — | (1,683) | 74,667 | |||||||||||||||||||
Total | $ | 3,129,530 | $ | 74,116 | $ | (16,256) | $ | 3,187,390 | |||||||||||||||
Held to Maturity | |||||||||||||||||||||||
Residential mortgage-backed securities | $ | 404,958 | $ | 11,022 | $ | (7,067) | $ | 408,913 | |||||||||||||||
Commercial mortgage-backed securities | 575,426 | — | (18,472) | 556,954 | |||||||||||||||||||
Total | $ | 980,384 | $ | 11,022 | $ | (25,539) | $ | 965,867 | |||||||||||||||
Available for Sale | Held to Maturity | ||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Due in one year or less | $ | 148,382 | $ | 143,463 | $ | — | $ | — | |||||||||||||||
Due from one year to five years | 159,126 | 154,536 | — | — | |||||||||||||||||||
Due from five years to ten years | 535,229 | 497,049 | — | — | |||||||||||||||||||
Due after ten years | 1,128,490 | 952,466 | — | — | |||||||||||||||||||
1,971,227 | 1,747,514 | — | — | ||||||||||||||||||||
Residential mortgage-backed securities(1) | 242,527 | 212,698 | 457,325 | 399,845 | |||||||||||||||||||
Commercial mortgage-backed securities(1) | 631,604 | 552,522 | 863,931 | 725,204 | |||||||||||||||||||
Collateralized mortgage obligations(1) | 147,155 | 134,033 | — | — | |||||||||||||||||||
Total | $ | 2,992,513 | $ | 2,646,767 | $ | 1,321,256 | $ | 1,125,049 |
Gross Realized Gains | Gross Realized Losses | Net Gains (Losses) | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
2022 | $ | 1,587 | $ | (1,614) | $ | (27) | |||||||||||
2021 | 35,593 | (2,077) | 33,516 | ||||||||||||||
2020 | 6,545 | (3,492) | 3,053 |
Less Than 12 months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||||||||||||||
Number of Securities | Estimated Fair Value | Unrealized Losses | Number of Securities | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||
2022 | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government securities | 1 | $ | 96,906 | $ | (2,814) | 2 | $ | 121,579 | $ | (4,841) | $ | 218,485 | $ | (7,655) | |||||||||||||||||||||||||||||||||
U.S. Government sponsored agency securities | 1 | 1,008 | (42) | — | — | — | 1,008 | (42) | |||||||||||||||||||||||||||||||||||||||
State and municipal securities | 360 | 995,122 | (157,397) | 29 | 61,089 | (21,419) | 1,056,211 | (178,816) | |||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 66 | 376,398 | (31,333) | 6 | 37,157 | (6,150) | 413,555 | (37,483) | |||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 96 | 113,191 | (7,650) | 1 | 20,842 | (5,472) | 134,033 | (13,122) | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 81 | 154,861 | (18,301) | 5 | 55,293 | (11,546) | 210,154 | (29,847) | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 114 | 371,109 | (38,845) | 20 | 181,413 | (40,237) | 552,522 | (79,082) | |||||||||||||||||||||||||||||||||||||||
Total available for sale | 719 | $ | 2,108,595 | $ | (256,382) | 63 | $ | 477,373 | $ | (89,665) | $ | 2,585,968 | $ | (346,047) | |||||||||||||||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 106 | $ | 246,667 | $ | (14,275) | 14 | $ | 153,178 | $ | (43,205) | $ | 399,845 | $ | (57,480) | |||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 21 | 258,255 | (24,029) | 39 | 466,949 | (114,698) | 725,204 | (138,727) | |||||||||||||||||||||||||||||||||||||||
Total | 127 | $ | 504,922 | $ | (38,304) | 53 | $ | 620,127 | $ | (157,903) | $ | 1,125,049 | $ | (196,207) |
Less Than 12 months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||||||||||||||
Number of Securities | Estimated Fair Value | Unrealized Losses | Number of Securities | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||||||||||||||||||||||||
U.S Government Securities | 2 | $ | 127,618 | $ | (213) | — | $ | — | $ | — | $ | 127,618 | $ | (213) | |||||||||||||||||||||||||||||||||
State and municipal securities | 29 | 82,731 | (678) | — | — | — | 82,731 | (678) | |||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 6 | 43,068 | (358) | — | — | — | 43,068 | (358) | |||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 4 | 28,517 | (754) | — | — | — | 28,517 | (754) | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 7 | 123,687 | (2,388) | 1 | 16,669 | (648) | 140,356 | (3,036) | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 41 | 512,312 | (9,534) | — | — | — | 512,312 | (9,534) | |||||||||||||||||||||||||||||||||||||||
Auction rate securities | — | — | — | 118 | 74,667 | (1,683) | 74,667 | (1,683) | |||||||||||||||||||||||||||||||||||||||
Total available for sale | 89 | $ | 917,933 | $ | (13,925) | 119 | $ | 91,336 | $ | (2,331) | $ | 1,009,269 | $ | (16,256) | |||||||||||||||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 14 | $ | 205,969 | $ | (7,067) | — | $ | — | $ | — | $ | 205,969 | $ | (7,067) | |||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 36 | 556,954 | (18,472) | — | — | — | 556,954 | (18,472) | |||||||||||||||||||||||||||||||||||||||
Total | 50 | $ | 762,923 | $ | (25,539) | — | $ | — | $ | — | $ | 762,923 | $ | (25,539) |
NOTE 5 – LOANS AND ALLOWANCE FOR CREDIT LOSSES |
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Real estate - commercial mortgage | $ | 7,693,835 | $ | 7,279,080 | |||||||
Commercial and industrial(1) | 4,477,537 | 4,208,327 | |||||||||
Real-estate - residential mortgage | 4,737,279 | 3,846,750 | |||||||||
Real-estate - home equity | 1,102,838 | 1,118,248 | |||||||||
Real-estate - construction | 1,269,925 | 1,139,779 | |||||||||
Consumer | 699,179 | 464,657 | |||||||||
Equipment lease financing and other | 324,928 | 283,557 | |||||||||
Overdrafts | 3,403 | 1,988 | |||||||||
Gross loans | 20,308,924 | 18,342,386 | |||||||||
Unearned income | (29,377) | (17,036) | |||||||||
Net loans | $ | 20,279,547 | $ | 18,325,350 |
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
ACL - loans | $ | 269,366 | $ | 249,001 | |||||||
Reserve for OBS credit exposures(1) | $ | 16,328 | $ | 14,533 | |||||||
2022 | 2021 | 2020 | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Balance at beginning of period | $ | 249,001 | $ | 277,567 | $ | 163,620 | ||||||||||||||
CECL Day 1 Provision expense | 7,954 | — | — | |||||||||||||||||
Purchased credit deteriorated loans | 1,135 | — | — | |||||||||||||||||
Impact of adopting CECL on January 1, 2020 | — | — | 45,724 | |||||||||||||||||
Loans charged off | (21,472) | (30,952) | (30,557) | |||||||||||||||||
Recoveries of loans previously charged off | 14,092 | 17,146 | 21,020 | |||||||||||||||||
Net loans (charged-off) recovered | (7,380) | (13,806) | (9,537) | |||||||||||||||||
Provision for credit losses | 18,656 | (14,760) | 77,760 | |||||||||||||||||
Balance at the end of the period | $ | 269,366 | $ | 249,001 | $ | 277,567 | ||||||||||||||
Provision for OBS credit exposures | $ | 1,411 | $ | 160 | $ | (840) | ||||||||||||||
Reserve for OBS credit exposures | $ | 16,328 | $ | 14,533 | $ | 14,373 |
Real Estate - Commercial Mortgage | Commercial and Industrial | Consumer and Real Estate - Home Equity | Real Estate - Residential Mortgage | Real Estate - Construction | Equipment Finance Leasing and Other | Total | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 103,425 | $ | 74,771 | $ | 25,137 | $ | 51,995 | $ | 15,608 | $ | 6,631 | $ | 277,567 | |||||||||||||||||||||||||||
Loans charged off | (8,726) | (15,337) | (3,309) | (1,290) | (39) | (2,251) | (30,952) | ||||||||||||||||||||||||||||||||||
Recoveries of loans previously charged off | 2,474 | 9,587 | 2,345 | 375 | 1,412 | 953 | 17,146 | ||||||||||||||||||||||||||||||||||
Net loans (charged off) recovered | (6,252) | (5,750) | (964) | (915) | 1,373 | (1,298) | (13,806) | ||||||||||||||||||||||||||||||||||
Provision for loan losses (1) | (9,203) | (1,965) | (4,424) | 3,156 | (4,040) | 1,716 | (14,760) | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 87,970 | 67,056 | 19,749 | 54,236 | 12,941 | 7,049 | 249,001 | ||||||||||||||||||||||||||||||||||
CECL Day 1 Provision expense | 4,107 | — | 131 | 3,716 | — | — | 7,954 | ||||||||||||||||||||||||||||||||||
Initial purchased credit deteriorated loans | 1,051 | — | 7 | 77 | — | — | 1,135 | ||||||||||||||||||||||||||||||||||
Loans charged off | (12,473) | (2,390) | (4,412) | (66) | — | (2,131) | (21,472) | ||||||||||||||||||||||||||||||||||
Recoveries of loans previously charged off | 3,860 | 5,893 | 2,581 | 425 | 574 | 759 | 14,092 | ||||||||||||||||||||||||||||||||||
Net loans (charged off) recovered | (8,613) | 3,503 | (1,831) | 359 | 574 | (1,372) | (7,380) | ||||||||||||||||||||||||||||||||||
Provision for loan losses(1) | (15,059) | (443) | 8,373 | 24,862 | (2,772) | 3,695 | 18,656 | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | 69,456 | $ | 70,116 | $ | 26,429 | $ | 83,250 | $ | 10,743 | $ | 9,372 | $ | 269,366 |
2022 | 2021 | ||||||||||||||||||||||||||||||||||
With a Related Allowance | Without a Related Allowance | Total | With a Related Allowance | Without a Related Allowance | Total | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 39,722 | $ | 30,439 | $ | 70,161 | $ | 20,564 | $ | 32,251 | $ | 52,815 | |||||||||||||||||||||||
Commercial and industrial | 14,804 | 12,312 | 27,116 | 12,571 | 17,570 | 30,141 | |||||||||||||||||||||||||||||
Real estate - residential mortgage | 25,315 | 979 | 26,294 | 35,269 | — | 35,269 | |||||||||||||||||||||||||||||
Real estate - home equity | 5,975 | 130 | 6,105 | 8,671 | — | 8,671 | |||||||||||||||||||||||||||||
Real estate - construction | 866 | 502 | 1,368 | 173 | 728 | 901 | |||||||||||||||||||||||||||||
Consumer | 92 | — | 92 | 229 | — | 229 | |||||||||||||||||||||||||||||
Equipment lease financing and other | 4,052 | 9,255 | 13,307 | 6,247 | 9,393 | 15,640 | |||||||||||||||||||||||||||||
Total | $ | 90,826 | $ | 53,617 | $ | 144,443 | $ | 83,724 | $ | 59,942 | $ | 143,666 | |||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans | ||||||||||||||||||||||||||||||
(dollars in thousands) | Amortized | Amortized | ||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | Cost Basis | Cost Basis | Total | ||||||||||||||||||||||||
Real estate - commercial mortgage | ||||||||||||||||||||||||||||||||
Pass | $ | 1,014,575 | $ | 1,095,725 | $ | 969,118 | $ | 810,850 | $ | 621,689 | $ | 2,610,511 | $ | 80,665 | $ | 307 | $ | 7,203,440 | ||||||||||||||
Special Mention | 95 | 50,367 | 23,296 | 33,735 | 16,205 | 181,736 | 947 | — | 306,381 | |||||||||||||||||||||||
Substandard or Lower | 1,032 | 3,039 | 31,042 | 38,378 | 23,112 | 87,168 | 243 | — | 184,014 | |||||||||||||||||||||||
Total real estate - commercial mortgage | 1,015,702 | 1,149,131 | 1,023,456 | 882,963 | 661,006 | 2,879,415 | 81,855 | 307 | 7,693,835 | |||||||||||||||||||||||
Real estate - commercial mortgage | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | (53) | — | (12,420) | (12,473) | |||||||||||||||||||||||
Current period recoveries | — | — | — | — | — | 4 | — | 3,856 | 3,860 | |||||||||||||||||||||||
Total net (charge-offs) recoveries | — | — | — | — | — | (49) | — | (8,564) | (8,613) | |||||||||||||||||||||||
Commercial and industrial(2) | ||||||||||||||||||||||||||||||||
Pass | 907,390 | 449,145 | 397,881 | 315,605 | 185,096 | 604,352 | 1,387,961 | 618 | 4,248,048 | |||||||||||||||||||||||
Special Mention | 11,405 | 24,479 | 3,763 | 8,147 | 5,218 | 24,633 | 56,048 | 250 | 133,943 | |||||||||||||||||||||||
Substandard or Lower | 834 | 418 | 4,818 | 13,044 | 3,081 | 22,025 | 51,077 | 249 | 95,546 | |||||||||||||||||||||||
Total commercial and industrial | 919,629 | 474,042 | 406,462 | 336,796 | 193,395 | 651,010 | 1,495,086 | 1,117 | 4,477,537 | |||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | (36) | — | (21) | (365) | (1,192) | (776) | (2,390) | |||||||||||||||||||||||
Current period recoveries | — | — | 30 | 95 | 379 | 1,740 | 811 | 2,838 | 5,893 | |||||||||||||||||||||||
Total net (charge-offs) recoveries | — | — | (6) | 95 | 358 | 1,375 | (381) | 2,062 | 3,503 | |||||||||||||||||||||||
Real estate - construction(1) | ||||||||||||||||||||||||||||||||
Pass | 159,195 | 390,993 | 243,406 | 28,539 | 24,421 | 93,511 | 47,271 | — | 987,336 | |||||||||||||||||||||||
Special Mention | — | — | — | — | — | 21,603 | — | — | 21,603 | |||||||||||||||||||||||
Substandard or Lower | — | — | 3,852 | 2,274 | — | 4,272 | 203 | — | 10,601 | |||||||||||||||||||||||
Total real estate - construction | 159,195 | 390,993 | 247,258 | 30,813 | 24,421 | 119,386 | 47,474 | — | 1,019,540 | |||||||||||||||||||||||
Real estate - construction(1) | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Current period recoveries | — | — | — | — | — | 527 | — | 47 | 574 | |||||||||||||||||||||||
Total net (charge-offs) recoveries | — | — | — | — | — | 527 | — | 47 | 574 | |||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Pass | $ | 2,081,160 | $ | 1,935,863 | $ | 1,610,405 | $ | 1,154,994 | $ | 831,206 | $ | 3,308,374 | $ | 1,515,897 | $ | 925 | $ | 12,438,824 | ||||||||||||||
Special Mention | 11,500 | 74,846 | 27,059 | 41,882 | 21,423 | 227,972 | 56,995 | 250 | 461,927 | |||||||||||||||||||||||
Substandard or Lower | 1,866 | 3,457 | 39,712 | 53,696 | 26,193 | 113,465 | 51,523 | 249 | 290,161 | |||||||||||||||||||||||
Total | $ | 2,094,526 | $ | 2,014,166 | $ | 1,677,176 | $ | 1,250,572 | $ | 878,822 | $ | 3,649,811 | $ | 1,624,415 | $ | 1,424 | $ | 13,190,912 |
December 31, 2021 | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans | ||||||||||||||||||||||||||||||
(dollars in thousands) | Amortized | Amortized | ||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | Prior | Cost Basis | Cost Basis | Total | ||||||||||||||||||||||||
Real estate - commercial mortgage | ||||||||||||||||||||||||||||||||
Pass | $ | 1,086,113 | $ | 899,172 | $ | 826,866 | $ | 624,653 | $ | 712,223 | $ | 2,356,308 | $ | 55,370 | $ | — | $ | 6,560,705 | ||||||||||||||
Special Mention | 1,317 | 60,732 | 96,508 | 25,280 | 33,595 | 169,732 | 115 | — | 387,279 | |||||||||||||||||||||||
Substandard or Lower | 1,537 | 8,516 | 28,810 | 68,818 | 69,793 | 151,450 | 684 | 1,488 | 331,096 | |||||||||||||||||||||||
Total real estate - commercial mortgage | 1,088,967 | 968,420 | 952,184 | 718,751 | 815,611 | 2,677,490 | 56,169 | 1,488 | 7,279,080 | |||||||||||||||||||||||
Real estate - commercial mortgage | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | (14) | (25) | (6,972) | (1,517) | (198) | — | (8,726) | |||||||||||||||||||||||
Current period recoveries | — | — | — | — | 983 | 1,491 | — | — | 2,474 | |||||||||||||||||||||||
Total net (charge-offs) recoveries | — | — | (14) | (25) | (5,989) | (26) | (198) | — | (6,252) | |||||||||||||||||||||||
Commercial and industrial(2) | ||||||||||||||||||||||||||||||||
Pass | 855,924 | 520,802 | 396,575 | 232,805 | 147,675 | 581,762 | 1,177,857 | 339 | 3,913,739 | |||||||||||||||||||||||
Special Mention | 5,386 | 8,538 | 33,937 | 8,301 | 10,346 | 23,380 | 52,386 | 95 | 142,369 | |||||||||||||||||||||||
Substandard or Lower | 1,225 | 9,775 | 19,393 | 24,327 | 11,912 | 34,825 | 49,562 | 1,200 | 152,219 | |||||||||||||||||||||||
Total commercial and industrial | 862,535 | 539,115 | 449,905 | 265,433 | 169,933 | 639,967 | 1,279,805 | 1,634 | 4,208,327 | |||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | (2,977) | (406) | (4,966) | (208) | (286) | (800) | (5,694) | — | (15,337) | |||||||||||||||||||||||
Current period recoveries | 6 | 39 | 4,691 | 841 | 457 | 2,342 | 1,211 | — | 9,587 | |||||||||||||||||||||||
Total net (charge-offs) recoveries | (2,971) | (367) | (275) | 633 | 171 | 1,542 | (4,483) | — | (5,750) | |||||||||||||||||||||||
Real estate - construction(1) | ||||||||||||||||||||||||||||||||
Pass | 190,030 | 315,811 | 113,245 | 83,886 | 17,545 | 117,157 | 46,409 | — | 884,083 | |||||||||||||||||||||||
Special Mention | 5,843 | 775 | 9,984 | 20,200 | 15,724 | 6,315 | — | — | 58,841 | |||||||||||||||||||||||
Substandard or Lower | — | — | — | — | 1,912 | 4,185 | 227 | — | 6,324 | |||||||||||||||||||||||
Total real estate - construction | 195,873 | 316,586 | 123,229 | 104,086 | 35,181 | 127,657 | 46,636 | — | 949,248 | |||||||||||||||||||||||
Real estate - construction(1) | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | (39) | — | — | — | — | — | (39) | |||||||||||||||||||||||
Current period recoveries | — | — | 39 | — | — | 1,373 | — | — | 1,412 | |||||||||||||||||||||||
Total net (charge-offs) recoveries | — | — | — | — | — | 1,373 | — | — | 1,373 | |||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Pass | $ | 2,132,067 | $ | 1,735,785 | $ | 1,336,686 | $ | 941,344 | $ | 877,443 | $ | 3,055,227 | $ | 1,279,636 | $ | 339 | $ | 11,358,527 | ||||||||||||||
Special Mention | 12,546 | 70,045 | 140,429 | 53,781 | 59,665 | 199,427 | 52,501 | 95 | 588,489 | |||||||||||||||||||||||
Substandard or Lower | 2,762 | 18,291 | 48,203 | 93,145 | 83,617 | 190,460 | 50,473 | 2,688 | 489,639 | |||||||||||||||||||||||
Total | $ | 2,147,375 | $ | 1,824,121 | $ | 1,525,318 | $ | 1,088,270 | $ | 1,020,725 | $ | 3,445,114 | $ | 1,382,610 | $ | 3,122 | $ | 12,436,655 |
December 31, 2022 | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans | ||||||||||||||||||||||||||||||
(dollars in thousands) | Amortized | Amortized | ||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | Cost Basis | Cost Basis | Total | ||||||||||||||||||||||||
Real estate - residential mortgage | ||||||||||||||||||||||||||||||||
Performing | $ | 933,903 | $ | 1,708,703 | $ | 1,054,126 | $ | 286,167 | $ | 87,455 | $ | 620,416 | $ | — | $ | — | $ | 4,690,770 | ||||||||||||||
Non-performing | 1,199 | 5,104 | 6,597 | 6,466 | 4,587 | 22,556 | — | — | 46,509 | |||||||||||||||||||||||
Total real estate - residential mortgage | 935,102 | 1,713,807 | 1,060,723 | 292,633 | 92,042 | 642,972 | — | — | 4,737,279 | |||||||||||||||||||||||
Real estate - residential mortgage | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | — | — | (66) | (66) | |||||||||||||||||||||||
Current period recoveries | — | — | 4 | — | 27 | 261 | — | 133 | 425 | |||||||||||||||||||||||
Total net (charge-offs) recoveries | — | — | 4 | — | 27 | 261 | — | 67 | 359 | |||||||||||||||||||||||
Consumer and real estate - home equity | ||||||||||||||||||||||||||||||||
Performing | 416,631 | 109,724 | 80,422 | 52,384 | 45,642 | 211,127 | 842,226 | 34,061 | 1,792,217 | |||||||||||||||||||||||
Non-performing | 292 | 298 | 174 | 36 | 98 | 6,512 | 1,722 | 668 | 9,800 | |||||||||||||||||||||||
Total real estate - home equity | 416,923 | 110,022 | 80,596 | 52,420 | 45,740 | 217,639 | 843,948 | 34,729 | 1,802,017 | |||||||||||||||||||||||
Consumer and real estate - home equity | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | (587) | (70) | (108) | (16) | (442) | (178) | (3,011) | (4,412) | |||||||||||||||||||||||
Current period recoveries | — | 44 | 88 | 29 | 16 | 595 | 294 | 1,515 | 2,581 | |||||||||||||||||||||||
Total net (charge-offs) recoveries | — | (543) | 18 | (79) | — | 153 | 116 | (1,496) | (1,831) | |||||||||||||||||||||||
Construction - other | ||||||||||||||||||||||||||||||||
Performing | 164,924 | 73,492 | 10,892 | — | 1,077 | — | — | — | 250,385 | |||||||||||||||||||||||
Non-performing | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total construction - other | 164,924 | 73,492 | 10,892 | — | 1,077 | — | — | — | 250,385 | |||||||||||||||||||||||
Construction - other | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Current period recoveries | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total net (charge-offs) recoveries | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Equipment lease financing and other | ||||||||||||||||||||||||||||||||
Performing | 146,198 | 39,427 | 40,024 | 29,309 | 15,019 | 15,670 | — | — | 285,647 | |||||||||||||||||||||||
Non-performing | — | — | — | — | — | 13,307 | — | — | 13,307 | |||||||||||||||||||||||
Total leasing and other | 146,198 | 39,427 | 40,024 | 29,309 | 15,019 | 28,977 | — | — | 298,954 | |||||||||||||||||||||||
Equipment lease financing and other | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | (506) | (167) | (140) | (80) | (47) | (1,191) | — | — | (2,131) | |||||||||||||||||||||||
Current period recoveries | 63 | 18 | 82 | 25 | 10 | 268 | — | 293 | 759 | |||||||||||||||||||||||
Total net (charge-offs) recoveries | (443) | (149) | (58) | (55) | (37) | (923) | — | 293 | (1,372) | |||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Performing | $ | 1,661,656 | $ | 1,931,346 | $ | 1,185,464 | $ | 367,860 | $ | 149,193 | $ | 847,213 | $ | 842,226 | $ | 34,061 | $ | 7,019,019 | ||||||||||||||
Non-performing | 1,491 | 5,402 | 6,771 | 6,502 | 4,685 | 42,375 | 1,722 | 668 | 69,616 | |||||||||||||||||||||||
Total | $ | 1,663,147 | $ | 1,936,748 | $ | 1,192,235 | $ | 374,362 | $ | 153,878 | $ | 889,588 | $ | 843,948 | $ | 34,729 | $ | 7,088,635 | ||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans | ||||||||||||||||||||||||||||||
(dollars in thousands) | Amortized | Amortized | ||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | Prior | Cost Basis | Cost Basis | Total | ||||||||||||||||||||||||
Real estate - residential mortgage | ||||||||||||||||||||||||||||||||
Performing | $ | 1,548,174 | $ | 1,133,602 | $ | 344,625 | $ | 113,801 | $ | 198,164 | $ | 468,842 | $ | — | $ | — | $ | 3,807,208 | ||||||||||||||
Non-performing | — | 6,753 | 2,189 | 3,424 | 2,844 | 24,332 | — | — | 39,542 | |||||||||||||||||||||||
Total real estate - residential mortgage | 1,548,174 | 1,140,355 | 346,814 | 117,225 | 201,008 | 493,174 | — | — | 3,846,750 | |||||||||||||||||||||||
Real estate - residential mortgage | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | (626) | (148) | (125) | (4) | (387) | — | — | (1,290) | |||||||||||||||||||||||
Current period recoveries | — | — | 1 | 18 | — | 264 | 92 | — | 375 | |||||||||||||||||||||||
Total net (charge-offs) recoveries | — | (626) | (147) | (107) | (4) | (123) | 92 | — | (915) | |||||||||||||||||||||||
Consumer and real estate - home equity | ||||||||||||||||||||||||||||||||
Performing | 162,441 | 102,918 | 73,769 | 68,564 | 33,254 | 135,412 | 990,842 | 3,999 | 1,571,199 | |||||||||||||||||||||||
Non-performing | 122 | 101 | 60 | 51 | 314 | 2,348 | 8,512 | 198 | 11,706 | |||||||||||||||||||||||
Total real estate - home equity | 162,563 | 103,019 | 73,829 | 68,615 | 33,568 | 137,760 | 999,354 | 4,197 | 1,582,905 | |||||||||||||||||||||||
Consumer real estate - home equity | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | (175) | (491) | (496) | (238) | (224) | (411) | (1,274) | — | (3,309) | |||||||||||||||||||||||
Current period recoveries | — | 223 | 131 | 131 | 167 | 1,048 | 645 | — | 2,345 | |||||||||||||||||||||||
Total net (charge-offs) recoveries | (175) | (268) | (365) | (107) | (57) | 637 | (629) | — | (964) | |||||||||||||||||||||||
Construction - other | ||||||||||||||||||||||||||||||||
Performing | 144,652 | 40,040 | 638 | 5,028 | — | — | — | — | 190,358 | |||||||||||||||||||||||
Non-performing | — | — | — | — | 173 | — | — | — | 173 | |||||||||||||||||||||||
Total construction - other | 144,652 | 40,040 | 638 | 5,028 | 173 | — | — | — | 190,531 | |||||||||||||||||||||||
Construction - other | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Current period recoveries | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total net (charge-offs) recoveries | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Equipment lease financing and other | ||||||||||||||||||||||||||||||||
Performing | 97,077 | 65,316 | 49,591 | 34,107 | 22,444 | 1,369 | — | — | 269,904 | |||||||||||||||||||||||
Non-performing | — | — | — | — | 15,503 | 138 | — | — | 15,641 | |||||||||||||||||||||||
Total leasing and other | 97,077 | 65,316 | 49,591 | 34,107 | 37,947 | 1,507 | — | — | 285,545 | |||||||||||||||||||||||
Equipment lease financing and other | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | (975) | (1,276) | — | — | — | — | — | — | (2,251) | |||||||||||||||||||||||
Current period recoveries | 255 | 539 | 88 | 10 | 18 | 43 | — | — | 953 | |||||||||||||||||||||||
Total net (charge-offs) recoveries | (720) | (737) | 88 | 10 | 18 | 43 | — | — | (1,298) | |||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Performing | $ | 1,952,344 | $ | 1,341,876 | $ | 468,623 | $ | 221,500 | $ | 253,862 | $ | 605,623 | $ | 990,842 | $ | 3,999 | $ | 5,838,669 | ||||||||||||||
Non-performing | 122 | 6,854 | 2,249 | 3,475 | 18,834 | 26,818 | 8,512 | 198 | 67,062 | |||||||||||||||||||||||
Total | $ | 1,952,466 | $ | 1,348,730 | $ | 470,872 | $ | 224,975 | $ | 272,696 | $ | 632,441 | $ | 999,354 | $ | 4,197 | $ | 5,905,731 |
December 31, 2022 | December 31, 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Non-accrual loans | $ | 144,443 | $ | 143,666 | |||||||
Loans 90 days or more past due and still accruing(1) | 27,463 | 8,453 | |||||||||
Total non-performing loans | 171,906 | 152,119 | |||||||||
OREO(2) | 5,790 | 1,817 | |||||||||
Total non-performing assets | $ | 177,696 | $ | 153,936 |
30-59 | 60-89 | ≥ 90 Days | |||||||||||||||||||||||||||||||||
Days Past | Days Past | Past Due | Non- | ||||||||||||||||||||||||||||||||
Due | Due | and Accruing | Accrual | Current | Total | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Real estate – commercial mortgage | $ | 10,753 | $ | 4,644 | $ | 2,473 | $ | 70,161 | $ | 7,605,804 | $ | 7,693,835 | |||||||||||||||||||||||
Commercial and industrial(1) | 6,067 | 2,289 | 1,172 | 27,116 | 4,440,893 | 4,477,537 | |||||||||||||||||||||||||||||
Real estate – residential mortgage | 57,061 | 8,209 | 20,215 | 26,294 | 4,625,500 | 4,737,279 | |||||||||||||||||||||||||||||
Real estate – home equity | 5,666 | 2,444 | 2,704 | 6,105 | 1,085,919 | 1,102,838 | |||||||||||||||||||||||||||||
Real estate – construction | 1,762 | 1,758 | — | 1,368 | 1,265,037 | 1,269,925 | |||||||||||||||||||||||||||||
Consumer | 6,692 | 1,339 | 899 | 92 | 690,157 | 699,179 | |||||||||||||||||||||||||||||
Equipment lease financing and other | 348 | 122 | — | 13,307 | 285,177 | 298,954 | |||||||||||||||||||||||||||||
Total | $ | 88,349 | $ | 20,805 | $ | 27,463 | $ | 144,443 | $ | 19,998,487 | $ | 20,279,547 |
30-59 Days Past Due | 60-89 Days Past Due | ≥ 90 Days Past Due and Accruing | Non- accrual | Current | Total | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Real estate – commercial mortgage | $ | 1,089 | $ | 1,750 | $ | 1,229 | $ | 52,815 | $ | 7,222,197 | $ | 7,279,080 | |||||||||||||||||||||||
Commercial and industrial | 5,457 | 1,932 | 488 | 30,141 | 4,170,309 | 4,208,327 | |||||||||||||||||||||||||||||
Real estate – residential mortgage | 22,957 | 2,920 | 4,130 | 35,269 | 3,781,474 | 3,846,750 | |||||||||||||||||||||||||||||
Real estate – home equity | 4,369 | 1,154 | 2,253 | 8,671 | 1,101,801 | 1,118,248 | |||||||||||||||||||||||||||||
Real estate – construction | 1,318 | — | — | 901 | 1,137,560 | 1,139,779 | |||||||||||||||||||||||||||||
Consumer | 3,561 | 876 | 353 | 229 | 459,638 | 464,657 | |||||||||||||||||||||||||||||
Equipment lease financing and other | 226 | 27 | — | 15,640 | 252,616 | 268,509 | |||||||||||||||||||||||||||||
Total | $ | 38,977 | $ | 8,659 | $ | 8,453 | $ | 143,666 | $ | 18,125,595 | $ | 18,325,350 | |||||||||||||||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Real estate - commercial mortgage | $ | 3,255 | $ | 3,464 | |||||||
Commercial and industrial | 1,809 | 1,857 | |||||||||
Real estate - residential mortgage | 13,804 | 11,948 | |||||||||
Real estate - home equity | 10,717 | 12,218 | |||||||||
Consumer | — | 5 | |||||||||
Total accruing TDRs | 29,585 | 29,492 | |||||||||
Non-accrual TDRs(1) | 31,853 | 55,945 | |||||||||
Total TDRs | $ | 61,438 | $ | 85,437 |
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Number of Loans | Post-Modification Recorded Investment | Number of Loans | Post-Modification Recorded Investment | Number of Loans | Post-Modification Recorded Investment | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | 1 | $ | 150 | 9 | $ | 16,020 | 12 | $ | 24,868 | ||||||||||||||||||||||||||
Commercial and industrial | 1 | 82 | 10 | 2,823 | 20 | 5,218 | |||||||||||||||||||||||||||||
Real estate - residential mortgage | 5 | 293 | 46 | 13,256 | 48 | 10,493 | |||||||||||||||||||||||||||||
Real estate - home equity | 5 | 329 | 30 | 1,226 | 48 | 4,359 | |||||||||||||||||||||||||||||
Real estate - construction | — | — | 1 | 154 | — | — | |||||||||||||||||||||||||||||
Consumer | 13 | 792 | — | — | 14 | 345 | |||||||||||||||||||||||||||||
Total | 25 | $ | 1,646 | 96 | $ | 33,479 | 142 | $ | 45,283 |
NOTE 6 – PREMISES AND EQUIPMENT |
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Land | $ | 39,752 | $ | 38,494 | |||||||
Buildings and improvements | 357,698 | 346,098 | |||||||||
Furniture and equipment | 152,048 | 145,627 | |||||||||
Construction in progress | 8,711 | 8,644 | |||||||||
Total premises and equipment | 558,209 | 538,863 | |||||||||
Less: Accumulated depreciation and amortization | (333,068) | (318,506) | |||||||||
Net premises and equipment | $ | 225,141 | $ | 220,357 |
NOTE 7 – GOODWILL AND INTANGIBLE ASSETS |
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Intangible assets | |||||||||||
Amortizing intangible assets | $ | 13,596 | $ | 5,368 | |||||||
Accumulated amortization | (3,311) | (1,580) | |||||||||
Net intangibles | $ | 10,285 | $ | 3,788 |
NOTE 8 – MORTGAGE SERVICING RIGHTS |
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Amortized cost: | |||||||||||||||||
Balance at beginning of period | $ | 35,993 | $ | 38,745 | $ | 39,267 | |||||||||||
Originations of MSRs | 4,067 | 9,216 | 12,173 | ||||||||||||||
Amortization | (5,843) | (11,968) | (12,695) | ||||||||||||||
Balance at end of period | $ | 34,217 | $ | 35,993 | $ | 38,745 | |||||||||||
Valuation allowance: | |||||||||||||||||
Balance at beginning of period | $ | (600) | $ | (10,500) | $ | — | |||||||||||
Reduction (addition) to valuation allowance | 600 | 9,900 | (10,500) | ||||||||||||||
Balance at end of period | $ | — | $ | (600) | $ | (10,500) | |||||||||||
Net MSRs at end of period | $ | 34,217 | $ | 35,393 | $ | 28,245 | |||||||||||
Estimated fair value of MSRs at end of period | $ | 50,044 | $ | 35,393 | $ | 28,245 | |||||||||||
Year | |||||
2023 | $ | 4,391 | |||
2024 | 3,915 | ||||
2025 | 3,474 | ||||
2026 | 3,074 | ||||
2027 | 2,713 | ||||
Thereafter | 16,650 | ||||
Total estimated amortization expense | $ | 34,217 |
NOTE 9 – DEPOSITS |
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Noninterest-bearing demand | $ | 7,006,388 | $ | 7,370,963 | |||||||
Interest-bearing demand | 5,410,903 | 5,819,539 | |||||||||
Savings and money market accounts | 6,434,621 | 6,403,995 | |||||||||
Total demand and savings | 18,851,912 | 19,594,497 | |||||||||
Brokered deposits | 208,416 | 251,526 | |||||||||
Time deposits | 1,589,210 | 1,727,476 | |||||||||
Total Deposits | $ | 20,649,538 | $ | 21,573,499 |
Year | |||||
2023 | $ | 966,235 | |||
2024 | 234,681 | ||||
2025 | 285,527 | ||||
2026 | 19,704 | ||||
2027 | 18,474 | ||||
Thereafter | 64,589 | ||||
$ | 1,589,210 |
NOTE 10 – BORROWINGS |
December 31 | Maximum Outstanding | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Federal funds purchased | $ | 191,000 | $ | — | $ | 292,000 | $ | — | |||||||||||||||
Federal Home Loan Bank advances | 1,250,000 | — | 1,250,000 | 535,969 | |||||||||||||||||||
Other borrowings: | |||||||||||||||||||||||
Customer repurchase agreements | 574,394 | 416,764 | 574,394 | 552,547 | |||||||||||||||||||
Other repurchase agreements | 315,000 | — | 315,000 | — | |||||||||||||||||||
Other borrowings | 1,179 | 939 | N/A | N/A | |||||||||||||||||||
Total other borrowings | $ | 890,573 | $ | 417,703 |
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Subordinated debt | $ | 543,601 | $ | 608,519 | |||||||
Junior subordinated deferrable interest debentures | — | 16,496 | |||||||||
Unamortized discounts and issuance costs | (3,967) | (4,609) | |||||||||
Total senior debt and subordinated debt | $ | 539,634 | $ | 620,406 |
Year | |||||
2023 | $ | — | |||
2024 | 168,778 | ||||
2025 | — | ||||
2026 | — | ||||
2027 | — | ||||
Thereafter | 375,000 | ||||
Unamortized discounts and issuance costs | (4,144) | ||||
$ | 539,634 |
NOTE 11 – DERIVATIVE FINANCIAL INSTRUMENTS |
2022 | 2021 | ||||||||||||||||||||||
Notional Amount | Asset (Liability) Fair Value | Notional Amount | Asset (Liability) Fair Value | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Interest Rate Locks with Customers | |||||||||||||||||||||||
Positive fair values | $ | 70,836 | $ | 182 | $ | 261,428 | $ | 2,326 | |||||||||||||||
Negative fair values | 4,939 | (51) | 2,549 | (23) | |||||||||||||||||||
Forward Commitments | |||||||||||||||||||||||
Positive fair values | — | — | 51,000 | 41 | |||||||||||||||||||
Negative fair values | 10,000 | (147) | — | — | |||||||||||||||||||
Interest Rate Derivatives with Customers | |||||||||||||||||||||||
Positive fair values | 171,317 | 3,337 | 3,213,924 | 153,752 | |||||||||||||||||||
Negative fair values | 3,802,480 | (280,401) | 752,462 | (4,766) | |||||||||||||||||||
Interest Rate Derivatives with Dealer Counterparties | |||||||||||||||||||||||
Positive fair values | 3,802,480 | 161,956 | 752,462 | 4,766 | |||||||||||||||||||
Negative fair values | 171,317 | (3,703) | 3,213,924 | (79,889) | |||||||||||||||||||
Interest Rate Derivatives used in Cash Flow Hedges | |||||||||||||||||||||||
Positive fair values | 600,000 | 1,321 | 500,000 | 60 | |||||||||||||||||||
Negative fair values | 1,000,000 | (12,163) | 500,000 | (1,432) | |||||||||||||||||||
Foreign Exchange Contracts with Customers | |||||||||||||||||||||||
Positive fair values | 11,123 | 571 | 7,629 | 229 | |||||||||||||||||||
Negative fair values | 3,672 | (85) | 3,388 | (51) | |||||||||||||||||||
Foreign Exchange Contracts with Correspondent Banks | |||||||||||||||||||||||
Positive fair values | 4,887 | 101 | 3,656 | 69 | |||||||||||||||||||
Negative fair values | 8,280 | (499) | 9,364 | (240) |
Amount of Gain (Loss) Recognized in OCI on Derivative | Amount of Gain (Loss) Recognized in OCI Included Component | Amount of Gain (Loss) Recognized in OCI Excluded Component | Location of Gain (Loss) Recognized from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Income Included Component | Amount of Gain (Loss) Reclassified from AOCI into Income Excluded Component | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | |||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Interest Rate Products | $ | (81,400) | $ | (81,400) | $ | — | Interest Income | $ | (7,761) | $ | (7,761) | $ | — | ||||||||||||||||||||||||||||
Year Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Interest Rate Products | (3,452) | (3,452) | — | Interest Income | 2,776 | 2,776 | — |
Consolidated Statements of Income Classification | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Interest Income | Interest Expense | Interest Income | Interest Expense | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Total amounts of income line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded | $ | (7,761) | $ | — | $ | 2,776 | $ | — | |||||||||||||||
Interest contracts: | |||||||||||||||||||||||
Amount of gain (loss) reclassified from AOCI into income | (7,761) | — | 2,776 | — | |||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring | — | — | — | — | |||||||||||||||||||
Amount of gain (loss) reclassified from AOCI into income - included component | (7,761) | — | 2,776 | — | |||||||||||||||||||
Amount of gain (loss) reclassified from AOCI into income - excluded component | — | — | — | — |
Consolidated Statements of Income Classification | 2022 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Mortgage banking derivatives(1) | Mortgage banking | $ | (2,360) | $ | (3,392) | $ | 4,974 | ||||||||||||||||
Interest rate derivatives | Other expense | — | 1,050 | 70 | |||||||||||||||||||
Foreign exchange contracts | Other income | 81 | (36) | 12 | |||||||||||||||||||
$ | (2,279) | $ | (2,378) | $ | 5,056 |
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Amortized cost(1) | $ | 7,180 | $ | 35,050 | |||||||
Fair value | 7,264 | 35,768 |
Gross Amounts | Gross Amounts Not Offset | ||||||||||||||||||||||
Recognized | on the Consolidated | ||||||||||||||||||||||
on the | Balance Sheets | ||||||||||||||||||||||
Consolidated | Financial | Cash | Net | ||||||||||||||||||||
Balance Sheets | Instruments(1) | Collateral(2) | Amount | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
2022 | |||||||||||||||||||||||
Interest rate derivative assets | $ | 166,614 | $ | (8,071) | $ | — | $ | 158,543 | |||||||||||||||
Foreign exchange derivative assets with correspondent banks | 101 | (101) | — | — | |||||||||||||||||||
Total | $ | 166,715 | $ | (8,172) | $ | — | $ | 158,543 | |||||||||||||||
Interest rate derivative liabilities | $ | 296,267 | $ | (2,771) | $ | (127,638) | $ | 165,858 | |||||||||||||||
Foreign exchange derivative liabilities with correspondent banks | 499 | (101) | — | 398 | |||||||||||||||||||
Total | $ | 296,766 | $ | (2,872) | $ | (127,638) | $ | 166,256 | |||||||||||||||
2021 | |||||||||||||||||||||||
Interest rate derivative assets | $ | 158,578 | $ | (8,028) | $ | — | $ | 150,550 | |||||||||||||||
Foreign exchange derivative assets with correspondent banks | 69 | (69) | — | — | |||||||||||||||||||
Total | $ | 158,647 | $ | (8,097) | $ | — | $ | 150,550 | |||||||||||||||
Interest rate derivative liabilities | $ | 86,087 | $ | (6,656) | $ | (74,359) | $ | 5,072 | |||||||||||||||
Foreign exchange derivative liabilities with correspondent banks | 240 | (69) | — | 171 | |||||||||||||||||||
Total | $ | 86,327 | $ | (6,725) | $ | (74,359) | $ | 5,243 |
NOTE 12 – REGULATORY MATTERS |
2022 | |||||||||||||||||||||||||||||||||||
Actual | For Capital Adequacy Purposes | Well Capitalized | |||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | |||||||||||||||||||||||||||||||||||
Corporation | $ | 3,051,813 | 13.6 | % | $ | 1,799,138 | 8.0 | % | N/A | N/A | |||||||||||||||||||||||||
Fulton Bank, N.A. | 2,846,302 | 12.7 | 1,786,472 | 8.0 | $ | 2,233,090 | 10.0 | % | |||||||||||||||||||||||||||
Tier I Capital (to Risk-Weighted Assets): | |||||||||||||||||||||||||||||||||||
Corporation | $ | 2,447,018 | 10.9 | % | $ | 1,349,353 | 6.0 | % | N/A | N/A | |||||||||||||||||||||||||
Fulton Bank, N.A | 2,612,363 | 11.7 | 1,339,854 | 6.0 | $ | 1,786,472 | 8.0 | % | |||||||||||||||||||||||||||
Common Equity Tier I Capital (to Risk-Weighted Assets): | |||||||||||||||||||||||||||||||||||
Corporation | $ | 2,254,140 | 10.0% | $ | 1,012,015 | 4.5 | % | N/A | N/A | ||||||||||||||||||||||||||
Fulton Bank, N.A | 2,568,363 | 11.5 | 1,004,890 | 4.5 | $ | 1,451,508 | 6.5 | % | |||||||||||||||||||||||||||
Tier I Leverage Capital (to Average Assets): | |||||||||||||||||||||||||||||||||||
Corporation | $ | 2,447,018 | 9.5% | $ | 1,032,543 | 4.0 | % | N/A | N/A | ||||||||||||||||||||||||||
Fulton Bank, N.A | 2,612,363 | 10.1 | 1,035,915 | 4.0 | $ | 1,294,893 | 5.0 | % |
2021 | |||||||||||||||||||||||||||||||||||
Actual | For Capital Adequacy Purposes | Well Capitalized | |||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | |||||||||||||||||||||||||||||||||||
Corporation | $ | 2,841,529 | 14.1 | % | $ | 1,610,429 | 8.0 | % | N/A | N/A | |||||||||||||||||||||||||
Fulton Bank, N.A. | 2,591,332 | 12.9 | 1,602,597 | 8.0 | $ | 2,003,246 | 10.0 | % | |||||||||||||||||||||||||||
Tier I Capital (to Risk-Weighted Assets): | |||||||||||||||||||||||||||||||||||
Corporation | $ | 2,195,647 | 10.9 | % | $ | 1,207,822 | 6.0 | % | N/A | N/A | |||||||||||||||||||||||||
Fulton Bank, N.A | 2,395,890 | 12.0 | 1,201,948 | 6.0 | $ | 1,602,597 | 8.0 | % | |||||||||||||||||||||||||||
Common Equity Tier I Capital (to Risk-Weighted Assets): | |||||||||||||||||||||||||||||||||||
Corporation | $ | 2,002,769 | 9.9% | $ | 905,866 | 4.5 | % | N/A | N/A | ||||||||||||||||||||||||||
Fulton Bank, N.A | 2,351,890 | 11.7 | 901,461 | 4.5 | $ | 1,302,110 | 6.5 | % | |||||||||||||||||||||||||||
Tier I Leverage Capital (to Average Assets): | |||||||||||||||||||||||||||||||||||
Corporation | $ | 2,195,647 | 8.6 | % | $ | 1,023,787 | 4.0 | % | N/A | N/A | |||||||||||||||||||||||||
Fulton Bank, N.A | 2,395,890 | 9.4 | 1,017,083 | 4.0 | $ | 1,271,354 | 5.0 | % |
NOTE 13 – INCOME TAXES |
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Current tax expense: | |||||||||||||||||
Federal | $ | 44,478 | $ | 35,692 | $ | 38,397 | |||||||||||
State | 6,906 | 10,646 | 7,389 | ||||||||||||||
Total current tax expense | 51,384 | 46,338 | 45,786 | ||||||||||||||
Deferred tax (benefit) expense: | |||||||||||||||||
Federal | 8,974 | 11,081 | (18,131) | ||||||||||||||
State | (324) | 1,329 | (3,460) | ||||||||||||||
Total deferred tax (benefit) expense | 8,650 | 12,410 | (21,591) | ||||||||||||||
Total income tax expense | $ | 60,034 | $ | 58,748 | $ | 24,195 |
2022 | 2021 | 2020 | |||||||||||||||
Statutory tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Tax credit investments | (2.0) | (3.0) | (5.7) | ||||||||||||||
Tax-exempt income | (3.5) | (3.0) | (4.9) | ||||||||||||||
Bank owned life insurance | (0.7) | (0.5) | (0.7) | ||||||||||||||
State income taxes, net of federal benefit | 1.2 | 2.6 | 1.1 | ||||||||||||||
Executive compensation | 0.3 | 0.1 | — | ||||||||||||||
FDIC Premium | 0.3 | 0.3 | 0.3 | ||||||||||||||
Penalties | — | — | 0.2 | ||||||||||||||
Other, net | 0.7 | 0.1 | 0.7 | ||||||||||||||
Effective income tax rate | 17.3 | % | 17.6 | % | 12.0 | % |
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Unrealized holding losses on securities | $ | 110,689 | $ | — | |||||||
Allowance for credit losses | 65,481 | 62,465 | |||||||||
State loss carryforwards | 26,421 | 23,996 | |||||||||
Lease Liability | 21,264 | 21,034 | |||||||||
Tax credit investments | 11,186 | 11,203 | |||||||||
Other accrued expenses | 10,059 | 10,633 | |||||||||
Deferred compensation | 9,014 | 9,190 | |||||||||
Tax credit carryforwards | 5,146 | 27,192 | |||||||||
Stock-based compensation | 4,681 | 3,499 | |||||||||
Other | 8,158 | 7,348 | |||||||||
Total gross deferred tax assets | $ | 272,099 | $ | 176,560 | |||||||
Deferred tax liabilities: | |||||||||||
Equipment lease financing | $ | 26,560 | $ | 41,049 | |||||||
Right-of-use-asset | 19,276 | 18,671 | |||||||||
MSRs | 7,750 | 8,016 | |||||||||
Premises and equipment | 5,775 | 9,151 | |||||||||
Acquisition premiums/discounts | 5,492 | 5,466 | |||||||||
Postretirement and defined benefit plans | 1,755 | 1,243 | |||||||||
Unrealized holding gains on AFS securities | — | 10,432 | |||||||||
Intangible assets | — | 1,272 | |||||||||
Other | 14,507 | 13,492 | |||||||||
Total gross deferred tax liabilities | 81,115 | 108,792 | |||||||||
Net deferred tax asset, before valuation allowance | 190,984 | 67,768 | |||||||||
Valuation allowance | (26,421) | (23,996) | |||||||||
Net deferred tax asset | $ | 164,563 | $ | 43,772 |
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Balance at beginning of year | $ | 1,673 | $ | 2,151 | $ | 2,517 | |||||||||||
Current period tax positions | 112 | 120 | 95 | ||||||||||||||
Lapse of statute of limitations | (557) | (598) | (461) | ||||||||||||||
Balance at end of year | $ | 1,228 | $ | 1,673 | $ | 2,151 |
2022 | 2021 | ||||||||||||||||
Included in other assets: | (dollars in thousands) | ||||||||||||||||
Affordable housing tax credit investments, net | $ | 161,103 | $ | 161,052 | |||||||||||||
Other tax credit investments, net | 61,077 | 42,987 | |||||||||||||||
Total TCIs, net | $ | 222,180 | $ | 204,039 | |||||||||||||
Included in other liabilities: | |||||||||||||||||
Unfunded affordable housing tax credit commitments | $ | 53,108 | $ | 49,364 | |||||||||||||
Other tax credit liabilities | 46,814 | 33,941 | |||||||||||||||
Total unfunded tax credit commitments and liabilities | $ | 99,922 | $ | 83,305 |
2022 | 2021 | 2020 | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Components of income taxes: | ||||||||||||||||||||
Tax credits and benefits | $ | (27,154) | $ | (28,141) | $ | (32,940) | ||||||||||||||
Amortization of tax credits and benefits, net of tax benefits | 19,298 | 17,378 | 20,429 | |||||||||||||||||
Deferred tax expense | 766 | 639 | 921 | |||||||||||||||||
Total reduction in income tax expense | $ | (7,090) | $ | (10,124) | $ | (11,590) | ||||||||||||||
Amortization of TCIs: | ||||||||||||||||||||
Total amortization of TCIs | $ | 2,783 | $ | 6,187 | $ | 6,126 | ||||||||||||||
NOTE 14 – NET INCOME PER COMMON SHARE |
2022 | 2021 | 2020 | |||||||||||||||
(in thousands) | |||||||||||||||||
Weighted average common shares outstanding (basic) | 164,119 | 162,233 | 162,372 | ||||||||||||||
Impact of common stock equivalents | 1,353 | 1,074 | 718 | ||||||||||||||
Weighted average common shares outstanding (diluted) | 165,472 | 163,307 | 163,090 |
NOTE 15 – SHAREHOLDERS’ EQUITY |
Before-Tax Amount | Tax Effect | Net of Tax Amount | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
2022 | |||||||||||||||||
Unrealized gain (loss) on securities | $ | (403,606) | $ | 91,437 | $ | (312,169) | |||||||||||
Reclassification adjustment for securities gains (losses) included in net income(1) | (27) | 7 | (20) | ||||||||||||||
Amortization of net unrealized gains (losses) on AFS transferred to HTM(2) | (57,509) | 13,026 | (44,483) | ||||||||||||||
Net unrealized holding gains (loss) arising during the period on interest rate derivatives used in cash flow hedges | (81,400) | 18,437 | (62,963) | ||||||||||||||
Reclassification adjustment for net loss (gain) realized in net income on interest rate derivatives used in cash flow hedges | 7,761 | (1,757) | 6,004 | ||||||||||||||
Unrecognized pension and postretirement income (cost) | 825 | (181) | 644 | ||||||||||||||
Amortization of net unrecognized pension and postretirement items(3) | 128 | (28) | 100 | ||||||||||||||
Total Other Comprehensive Income (Loss) | $ | (533,828) | $ | 120,941 | $ | (412,887) | |||||||||||
2021 | |||||||||||||||||
Unrealized gain (loss) on securities | $ | (23,222) | $ | 5,274 | $ | (17,948) | |||||||||||
Reclassification adjustment for securities gains (losses) included in net income(1) | (33,516) | 7,611 | (25,905) | ||||||||||||||
Amortization of net unrealized gains (losses) on AFS transferred to HTM(2) | 3,485 | (795) | 2,690 | ||||||||||||||
Net unrealized holding gain (loss) arising during the period on interest rate derivatives used in cash flow hedges | (3,452) | 782 | (2,670) | ||||||||||||||
Reclassification adjustment for net loss (gain) realized in net income on interest rate derivatives used in cash flow hedges | (2,776) | 629 | (2,147) | ||||||||||||||
Unrecognized pension and postretirement income (cost) | 9,147 | (2,003) | 7,144 | ||||||||||||||
Amortization of net unrecognized pension and postretirement items(3) | 1,480 | (324) | 1,156 | ||||||||||||||
Total Other Comprehensive Income (Loss) | $ | (48,854) | $ | 11,174 | $ | (37,680) | |||||||||||
2020 | |||||||||||||||||
Unrealized gain (loss) on securities | $ | 85,188 | $ | (19,537) | $ | 65,651 | |||||||||||
Reclassification adjustment for securities gains (losses) included in net income(1) | (3,053) | 694 | (2,359) | ||||||||||||||
Amortization of net unrealized gains (losses) on AFS transferred to HTM(2)(4) | 4,360 | (912) | 3,448 | ||||||||||||||
Unrecognized pension and postretirement income (cost) | (3,242) | 710 | (2,532) | ||||||||||||||
Amortization of net unrecognized pension and postretirement items(3) | 1,311 | (291) | 1,020 | ||||||||||||||
Total Other Comprehensive Income (Loss) | $ | 84,564 | $ | (19,336) | $ | 65,228 |
Unrealized Gains (Losses) on Investment Securities | Net Unrealized (Loss) Gain on Interest Rate Derivatives used in Cash Flow Hedges | Unrecognized Pension and Postretirement Plan Income (Costs) | Total | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Balance at December 31, 2019 | $ | 14,864 | $ | — | $ | (15,001) | $ | (137) | |||||||||||||||
Other comprehensive income (loss) before reclassifications | 65,651 | — | (2,532) | 63,119 | |||||||||||||||||||
Amounts reclassified from AOCI gain (loss) | (2,359) | — | 1,020 | (1,339) | |||||||||||||||||||
Amortization of net unrealized gains (losses) on AFS securities transferred to HTM | 3,448 | — | — | 3,448 | |||||||||||||||||||
Balance at December 31, 2020 | 81,604 | — | (16,513) | 65,091 | |||||||||||||||||||
OCI before reclassifications | (17,948) | — | 7,144 | (10,804) | |||||||||||||||||||
Amounts reclassified from AOCI | (25,905) | (4,817) | 1,156 | (29,566) | |||||||||||||||||||
Amortization of net unrealized gains (losses) on AFS securities transferred to HTM | 2,690 | — | — | 2,690 | |||||||||||||||||||
Balance at December 31, 2021 | 40,441 | (4,817) | (8,213) | 27,411 | |||||||||||||||||||
OCI before reclassifications | (312,169) | (62,963) | 644 | (374,488) | |||||||||||||||||||
Amounts reclassified from AOCI | (20) | 6,004 | 100 | 6,084 | |||||||||||||||||||
Amortization of net unrealized gains (losses) on AFS securities transferred to HTM | (44,483) | — | — | (44,483) | |||||||||||||||||||
Balance at December 31, 2022 | $ | (316,231) | $ | (61,776) | $ | (7,469) | $ | (385,476) |
NOTE 16 – STOCK-BASED COMPENSATION PLANS |
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Compensation expense | $ | 15,081 | $ | 9,264 | $ | 8,381 | |||||||||||
Tax benefit | (2,690) | (2,027) | (1,790) | ||||||||||||||
Total stock-based compensation, net of tax | $ | 12,391 | $ | 7,237 | $ | 6,591 |
Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value (in millions) | ||||||||||||||||||||
Outstanding and exercisable as of December 31, 2021 | 239,591 | $ | 11.57 | ||||||||||||||||||||
Exercised | (130,503) | 11.12 | |||||||||||||||||||||
Forfeited | (624) | 12.10 | |||||||||||||||||||||
Expired | — | — | |||||||||||||||||||||
Outstanding and exercisable as of December 31, 2022 | 108,464 | $ | 12.11 | 1.0 year | $ | 0.5 | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Number of options exercised | 130,503 | 148,670 | 89,725 | ||||||||||||||
Total intrinsic value of options exercised | $ | 842 | $ | 801 | $ | 192 | |||||||||||
Cash received from options exercised | $ | 1,402 | $ | 1,651 | $ | 880 | |||||||||||
Tax benefit from options exercised | $ | 163 | $ | 155 | $ | 37 |
Restricted Stock/RSUs/PSUs(1) | ||||||||||||||
Shares | Weighted Average Grant Date Fair Value | |||||||||||||
Nonvested as of December 31, 2021 | 2,062,739 | $ | 14.26 | |||||||||||
Granted | 884,633 | 15.34 | ||||||||||||
Vested | (343,527) | 16.36 | ||||||||||||
Forfeited | (79,649) | 15.22 | ||||||||||||
Nonvested as of December 31, 2022 | 2,524,196 | $ | 14.16 |
2022 | 2021 | 2020 | |||||||||||||||
Risk-free interest rate | 2.84 | % | 0.25 | % | 0.25 | % | |||||||||||
Volatility of Corporation's stock | 43.46 | % | 42.55 | % | 33.10 | % | |||||||||||
Expected life of PSUs | 3 years | 3 years | 3 years |
2022 | 2021 | 2020 | |||||||||||||||
ESPP shares purchased | 134,645 | 134,156 | 194,485 | ||||||||||||||
Average purchase price per share (85% of market value) | $ | 14.06 | $ | 13.92 | $ | 10.02 | |||||||||||
Compensation expense recognized (in thousands) | $ | 334 | $ | 329 | $ | 344 |
NOTE 17 – EMPLOYEE BENEFIT PLANS |
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
401(k) Retirement Plan | $ | 10,988 | $ | 10,338 | $ | 9,853 | |||||||||||
Pension Plan | (1,347) | 217 | 660 | ||||||||||||||
Total | $ | 9,641 | $ | 10,555 | $ | 10,513 |
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Interest cost | $ | 2,393 | $ | 2,244 | $ | 2,726 | |||||||||||
Expected return on assets | (4,393) | (4,044) | (3,925) | ||||||||||||||
Net amortization and deferral | 653 | 2,017 | 1,859 | ||||||||||||||
Net periodic pension cost | $ | (1,347) | $ | 217 | $ | 660 | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Projected benefit obligation at beginning of year | $ | 87,530 | $ | 92,292 | |||||||
Interest cost | 2,393 | 2,244 | |||||||||
Benefit payments | (4,502) | (4,272) | |||||||||
Change in assumptions | (17,131) | (2,613) | |||||||||
Experience gain | 426 | (121) | |||||||||
Projected benefit obligation at end of year | $ | 68,716 | $ | 87,530 | |||||||
Fair value of plan assets at beginning of year | $ | 94,115 | $ | 87,177 | |||||||
Actual return on plan assets | (11,476) | 11,210 | |||||||||
Benefit payments | (4,502) | (4,272) | |||||||||
Fair value of plan assets at end of year | $ | 78,137 | $ | 94,115 |
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Projected benefit obligation | $ | (68,716) | $ | (87,530) | |||||||
Fair value of plan assets | 78,137 | 94,115 | |||||||||
Funded status | $ | 9,421 | $ | 6,585 |
Unrecognized Net Loss | |||||||||||
Before tax | Net of tax | ||||||||||
(dollars in thousands) | |||||||||||
Balance as of December 31, 2020 | $ | 25,474 | $ | 19,843 | |||||||
Recognized as a component of 2021 periodic pension cost | (2,017) | (1,574) | |||||||||
Unrecognized losses arising in 2021 | (9,899) | (7,724) | |||||||||
Balance as of December 31, 2021 | 13,558 | 10,545 | |||||||||
Recognized as a component of 2022 periodic pension cost | (653) | (510) | |||||||||
Unrecognized losses arising in 2022 | (835) | (651) | |||||||||
Balance as of December 31, 2022 | $ | 12,070 | $ | 9,384 |
2022 | 2021 | 2020 | |||||||||||||||
Discount rate-projected benefit obligation | 4.93 | % | 2.80 | % | 2.50 | % | |||||||||||
Expected long-term rate of return on plan assets | 5.00 | % | 5.00 | % | 5.00 | % |
2022 | 2021 | ||||||||||||||||||||||
Estimated Fair Value | % of Total Assets | Estimated Fair Value | % of Total Assets | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Equity mutual funds | $ | 23,338 | $ | 35,752 | |||||||||||||||||||
Equity common trust funds | 16,919 | 19,824 | |||||||||||||||||||||
Equity securities | 40,257 | 51.5 | % | 55,576 | 59.1 | % | |||||||||||||||||
Cash and money market funds | 9,102 | 8,447 | |||||||||||||||||||||
Fixed income mutual funds | 15,252 | 15,566 | |||||||||||||||||||||
Corporate debt securities | 2,324 | 2,733 | |||||||||||||||||||||
U.S. Government agency securities | 7,041 | 9,524 | |||||||||||||||||||||
Fixed income securities and cash | 33,719 | 43.2 | % | 36,270 | 38.5 | % | |||||||||||||||||
Other alternative investment funds | 4,161 | 5.3 | % | 2,269 | 2.4 | % | |||||||||||||||||
Total | $ | 78,137 | 100.0 | % | $ | 94,115 | 100.0 | % |
Year | |||||
2023 | $ | 4,676 | |||
2024 | 4,730 | ||||
2025 | 4,791 | ||||
2026 | 4,904 | ||||
2027 | 4,959 | ||||
Thereafter | 24,632 | ||||
Total | $ | 48,692 |
Legal Name of Plan | Pentegra Defined Benefit Plan for Financial Institutions | ||||
(dollars in thousands) | |||||
Plan Employer Identification Number | 23-1928421 | ||||
The Corporation's contribution for the year ended December 31, 2022(1) | $ | 320 | |||
Are the Corporation's contributions more than 5% of total contributions? | No | ||||
Funded Status | 84.33 | % |
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Interest cost | $ | 34 | $ | 32 | $ | 43 | |||||||||||
Net amortization and deferral | (525) | (536) | (548) | ||||||||||||||
Net postretirement benefit | $ | (491) | $ | (504) | $ | (505) |
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Accumulated postretirement benefit obligation at beginning of year | $ | 1,244 | $ | 1,322 | |||||||
Interest cost | 34 | 32 | |||||||||
Benefit payments | (155) | (167) | |||||||||
Change in experience | 51 | 71 | |||||||||
Change in assumptions | (202) | (14) | |||||||||
Accumulated postretirement benefit obligation at end of year | $ | 972 | $ | 1,244 | |||||||
Before tax | |||||||||||||||||||||||
Unrecognized Prior Service Cost | Unrecognized Net Loss (Gain) | Total | Net of tax | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Balance as of December 31, 2020 | $ | (3,012) | $ | (858) | $ | (3,870) | $ | (3,018) | |||||||||||||||
Recognized as a component of 2021 postretirement cost | 464 | 72 | 536 | 418 | |||||||||||||||||||
Unrecognized gains arising in 2021 | — | 57 | 57 | 44 | |||||||||||||||||||
Balance as of December 31, 2021 | (2,548) | (729) | (3,277) | (2,556) | |||||||||||||||||||
Recognized as a component of 2022 postretirement cost | 464 | 61 | 525 | 410 | |||||||||||||||||||
Unrecognized gains arising in 2022 | — | (150) | (150) | (118) | |||||||||||||||||||
Balance as of December 31, 2022 | $ | (2,084) | $ | (818) | $ | (2,902) | $ | (2,264) |
2022 | 2021 | 2020 | |||||||||||||||
Discount rate-projected benefit obligation | 4.93 | % | 2.80 | % | 2.50 | % | |||||||||||
Expected long-term rate of return on plan assets | 3.00 | % | 3.00 | % | 3.00 | % |
Year | |||||
2023 | $ | 150 | |||
2024 | 136 | ||||
2025 | 124 | ||||
2026 | 111 | ||||
2027 | 100 | ||||
Thereafter | 297 | ||||
Total | $ | 918 |
NOTE 18 – LEASES |
2022 | 2021 | 2020 | ||||||||||||||||||
Operating lease expense | $ | 17,766 | $ | 16,345 | $ | 18,481 | ||||||||||||||
Variable lease expense | 3,017 | 1,384 | 2,830 | |||||||||||||||||
Sublease income | (964) | (860) | (749) | |||||||||||||||||
Total lease expense | $ | 19,819 | $ | 16,869 | $ | 20,562 | ||||||||||||||
Operating Leases | Balance Sheet Classification | 2022 | 2021 | |||||||||||||||||
Other assets | $ | 85,103 | $ | 82,431 | ||||||||||||||||
Other liabilities | $ | 93,883 | $ | 92,864 | ||||||||||||||||
Weighted average remaining lease term | 6.75 years | 7.0 years | ||||||||||||||||||
Weighted average discount rate | 2.89 | % | 2.73 | % |
2022 | 2021 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | 19,405 | $ | 19,611 | |||||||
ROU assets obtained in exchange for lease obligations | 18,715 | 12,588 |
Year | Operating Leases | ||||
2023 | $ | 19,222 | |||
2024 | 17,821 | ||||
2025 | 15,310 | ||||
2026 | 13,584 | ||||
2027 | 11,112 | ||||
Thereafter | 26,681 | ||||
Total lease payments | 103,730 | ||||
Less: imputed interest | (9,847) | ||||
Present value of lease liabilities | $ | 93,883 |
NOTE 19 – COMMITMENTS AND CONTINGENCIES |
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Commercial and industrial | $ | 4,832,858 | $ | 5,072,008 | |||||||
Real estate - commercial mortgage and real estate - construction | 1,972,505 | 1,914,238 | |||||||||
Real estate - home equity | 1,890,258 | 1,744,922 | |||||||||
Total commitments to extend credit | $ | 8,695,621 | $ | 8,731,168 | |||||||
Standby letters of credit | $ | 260,829 | $ | 298,275 | |||||||
Commercial letters of credit | 49,288 | 54,196 | |||||||||
Total letters of credit | $ | 310,117 | $ | 352,471 |
NOTE 20 – FAIR VALUE MEASUREMENTS |
2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Loans held for sale | $ | — | $ | 7,264 | $ | — | $ | 7,264 | |||||||||||||||
Available for sale investment securities: | |||||||||||||||||||||||
U.S. Government securities | 218,485 | — | — | 218,485 | |||||||||||||||||||
U.S. Government sponsored agency securities | — | 1,008 | — | 1,008 | |||||||||||||||||||
State and municipal securities | — | 1,105,712 | — | 1,105,712 | |||||||||||||||||||
Corporate debt securities | — | 422,309 | — | 422,309 | |||||||||||||||||||
Collateralized mortgage obligations | — | 134,033 | — | 134,033 | |||||||||||||||||||
Residential mortgage-backed securities | — | 212,698 | — | 212,698 | |||||||||||||||||||
Commercial mortgage-backed securities | — | 552,522 | — | 552,522 | |||||||||||||||||||
Total available for sale investment securities | 218,485 | 2,428,282 | — | 2,646,767 | |||||||||||||||||||
Investments held in Rabbi Trust | 23,435 | — | — | 23,435 | |||||||||||||||||||
Derivative assets | 672 | 166,796 | — | 167,468 | |||||||||||||||||||
Total assets | $ | 242,592 | $ | 2,602,342 | $ | — | $ | 2,844,934 | |||||||||||||||
Deferred compensation liabilities | $ | 23,435 | $ | — | $ | — | $ | 23,435 | |||||||||||||||
Derivative liabilities | 584 | 296,465 | — | 297,049 | |||||||||||||||||||
Total liabilities | $ | 24,019 | $ | 296,465 | $ | — | $ | 320,484 | |||||||||||||||
2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Loans held for sale | $ | — | $ | 35,768 | $ | — | $ | 35,768 | |||||||||||||||
Available for sale investment securities: | |||||||||||||||||||||||
U.S. Government securities | 127,618 | — | — | 127,618 | |||||||||||||||||||
State and municipal securities | — | 1,188,670 | — | 1,188,670 | |||||||||||||||||||
Corporate debt securities | — | 386,133 | — | 386,133 | |||||||||||||||||||
Collateralized mortgage obligations | — | 209,359 | — | 209,359 | |||||||||||||||||||
Residential mortgage-backed securities | — | 229,795 | — | 229,795 | |||||||||||||||||||
Commercial mortgage-backed securities | — | 971,148 | — | 971,148 | |||||||||||||||||||
Auction rate securities | — | — | 74,667 | 74,667 | |||||||||||||||||||
Total available for sale investment securities | 127,618 | 2,985,105 | 74,667 | 3,187,390 | |||||||||||||||||||
Investments held in Rabbi Trust | 28,619 | — | — | 28,619 | |||||||||||||||||||
Derivative assets | 298 | 160,945 | — | 161,243 | |||||||||||||||||||
Total assets | $ | 156,535 | $ | 3,181,818 | $ | 74,667 | $ | 3,413,020 | |||||||||||||||
Deferred compensation liabilities | $ | 28,619 | $ | — | $ | — | $ | 28,619 | |||||||||||||||
Derivative liabilities | 291 | 86,110 | — | 86,401 | |||||||||||||||||||
Total liabilities | $ | 28,910 | $ | 86,110 | $ | — | $ | 115,020 |
ARCs | ||||||||
(dollars in thousands) | ||||||||
Balance at December 31, 2020 | $ | 98,206 | ||||||
Sales | (24,619) | |||||||
Unrealized adjustment to fair value(1) | 1,080 | |||||||
Balance at December 31, 2021 | $ | 74,667 | ||||||
Sales | (74,823) | |||||||
Unrealized adjustment to fair value(1) | 156 | |||||||
Balance at December 31, 2022 | $ | — |
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Loans, net | $ | 121,115 | $ | 118,458 | |||||||
OREO | 5,790 | 1,817 | |||||||||
MSRs(1) | 50,044 | 35,393 | |||||||||
Total assets | $ | 176,949 | $ | 155,668 |
Significant Input | Scenario Shock | % Change in Valuation | ||||||||||||
Prepayment Rate | + 15% | (5)% | ||||||||||||
Prepayment Rate | - 15% | 5% | ||||||||||||
Discount Rate | - 200 bps | 10% | ||||||||||||
Discount Rate | + 200 bps | (8)% |
2022 | |||||||||||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
FINANCIAL ASSETS | (dollars in thousands) | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 681,921 | $ | 681,921 | $ | — | $ | — | $ | 681,921 | |||||||||||||||||||
FRB and FHLB stock | 130,186 | — | 130,186 | — | 130,186 | ||||||||||||||||||||||||
Loans held for sale | 7,264 | — | 7,264 | — | 7,264 | ||||||||||||||||||||||||
HTM securities | 1,321,256 | — | 1,125,049 | — | 1,125,049 | ||||||||||||||||||||||||
AFS securities | 2,646,767 | 218,485 | 2,428,282 | — | 2,646,767 | ||||||||||||||||||||||||
Loans, net | 20,010,181 | — | — | 18,862,701 | 18,862,701 | ||||||||||||||||||||||||
Accrued interest receivable | 91,579 | 91,579 | — | — | 91,579 | ||||||||||||||||||||||||
Other assets | 642,049 | 419,419 | 166,796 | 55,834 | 642,049 | ||||||||||||||||||||||||
FINANCIAL LIABILITIES | |||||||||||||||||||||||||||||
Demand and savings deposits | $ | 18,851,912 | $ | 18,851,912 | $ | — | $ | — | $ | 18,851,912 | |||||||||||||||||||
Brokered deposits | 208,416 | 188,416 | 25,085 | — | 213,501 | ||||||||||||||||||||||||
Time deposits | 1,589,210 | — | 1,574,747 | — | 1,574,747 | ||||||||||||||||||||||||
Accrued interest payable | 10,185 | 10,185 | — | — | 10,185 | ||||||||||||||||||||||||
Federal funds purchased | 191,000 | 190,998 | — | — | 190,998 | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 1,250,000 | 1,249,629 | — | — | 1,249,629 | ||||||||||||||||||||||||
Senior debt and subordinated debt | 539,634 | — | 456,867 | — | 456,867 | ||||||||||||||||||||||||
Other borrowings | 890,573 | 889,393 | 1,180 | — | 890,573 | ||||||||||||||||||||||||
Other liabilities | 467,705 | 154,912 | 296,465 | 16,328 | 467,705 | ||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
FINANCIAL ASSETS | (dollars in thousands) | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,638,614 | $ | 1,638,614 | $ | — | $ | — | $ | 1,638,614 | |||||||||||||||||||
FRB and FHLB stock | 57,635 | — | 57,635 | — | 57,635 | ||||||||||||||||||||||||
Loans held for sale | 35,768 | — | 35,768 | — | 35,768 | ||||||||||||||||||||||||
HTM securities | 980,384 | — | 965,867 | — | 965,867 | ||||||||||||||||||||||||
AFS securities | 3,187,390 | 127,618 | 2,985,105 | 74,667 | 3,187,390 | ||||||||||||||||||||||||
Loans, net | 18,076,349 | — | — | 17,519,497 | 17,519,497 | ||||||||||||||||||||||||
Accrued interest receivable | 57,451 | 57,451 | — | — | 57,451 | ||||||||||||||||||||||||
Other assets | 565,491 | 367,336 | 160,945 | 37,210 | 565,491 | ||||||||||||||||||||||||
FINANCIAL LIABILITIES | |||||||||||||||||||||||||||||
Demand and savings deposits | $ | 19,594,497 | $ | 19,594,497 | $ | — | $ | — | $ | 19,594,497 | |||||||||||||||||||
Brokered deposits | 251,526 | 231,526 | 20,603 | — | 252,129 | ||||||||||||||||||||||||
Time deposits | 1,727,476 | — | 1,730,673 | — | 1,730,673 | ||||||||||||||||||||||||
Accrued interest payable | 7,000 | 7,000 | — | — | 7,000 | ||||||||||||||||||||||||
Senior debt and subordinated debt | 620,406 | — | 604,780 | — | 604,780 | ||||||||||||||||||||||||
Other borrowings | 417,703 | 416,764 | 939 | — | 417,703 | ||||||||||||||||||||||||
Other liabilities | 288,862 | 188,219 | 86,110 | 14,533 | 288,862 |
Assets | Liabilities | |||||||
Cash and cash equivalents | Demand and savings deposits | |||||||
Accrued interest receivable | Short-term borrowings | |||||||
Accrued interest payable |
NOTE 21 – CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 169,208 | $ | 352,715 | |||||||
Other assets | 58,497 | 25,888 | |||||||||
Receivable from subsidiaries | 194,869 | 50,822 | |||||||||
Investments in: | |||||||||||
Bank subsidiary | 2,708,663 | 2,872,274 | |||||||||
Non-bank subsidiaries | 38,348 | 188,171 | |||||||||
Total Assets | $ | 3,169,585 | $ | 3,489,870 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Senior and subordinated debt | $ | 539,634 | $ | 620,406 | |||||||
Payable to non-bank subsidiaries | — | 78,793 | |||||||||
Other liabilities | 50,194 | 77,991 | |||||||||
Total Liabilities | 589,828 | 777,190 | |||||||||
Shareholders' equity | 2,579,757 | 2,712,680 | |||||||||
Total Liabilities and Shareholders' Equity | $ | 3,169,585 | $ | 3,489,870 |
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Income: | |||||||||||||||||
Dividends from subsidiaries | $ | 207,000 | $ | 469,339 | $ | 161,000 | |||||||||||
Other | 725 | 258 | 100 | ||||||||||||||
207,725 | 469,597 | 161,100 | |||||||||||||||
Expenses | 51,887 | 58,527 | 48,634 | ||||||||||||||
Income before income taxes and equity in undistributed net income of subsidiaries | 155,838 | 411,070 | 112,466 | ||||||||||||||
Income tax benefit | (12,331) | (12,516) | (9,679) | ||||||||||||||
168,169 | 423,586 | 122,145 | |||||||||||||||
Equity in undistributed net income (loss) of: | |||||||||||||||||
Bank subsidiary | 121,388 | (133,157) | 162,037 | ||||||||||||||
Non-bank subsidiaries | (2,576) | (14,932) | (106,142) | ||||||||||||||
Net Income | 286,981 | 275,497 | 178,040 | ||||||||||||||
Preferred stock dividends | (10,248) | (10,277) | (2,135) | ||||||||||||||
Net Income Available to Common Shareholders | $ | 276,733 | $ | 265,220 | $ | 175,905 |
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Cash Flows From Operating Activities: | |||||||||||||||||
Net income | $ | 286,981 | $ | 275,497 | $ | 178,040 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Amortization of issuance costs and discount of long-term debt | 724 | 1,846 | 1,128 | ||||||||||||||
Stock-based compensation | 14,000 | 8,402 | 7,529 | ||||||||||||||
Decrease (increase) in other assets | 44,790 | 119,822 | (307,976) | ||||||||||||||
Equity in undistributed net (income) loss of subsidiaries | (120,213) | 148,091 | (55,895) | ||||||||||||||
Write-off of unamortized costs on trust preferred securities | — | 12,390 | — | ||||||||||||||
Increase (decrease) in other liabilities and payable to non-bank subsidiaries | (198,349) | 78,716 | (244,598) | ||||||||||||||
Total adjustments | (259,048) | 369,267 | (599,812) | ||||||||||||||
Net cash provided by (used in) operating activities | 27,933 | 644,764 | (421,772) | ||||||||||||||
Cash Flows From Investing Activities | |||||||||||||||||
Net cash paid for acquisition | (21,811) | — | — | ||||||||||||||
Net cash provided by (used in) investing activities | (21,811) | — | — | ||||||||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Repayments of long-term borrowings | (81,496) | (153,612) | (19,453) | ||||||||||||||
Additions to long-term borrowings | — | — | 370,898 | ||||||||||||||
Net proceeds from issuance of preferred stock | — | — | 192,878 | ||||||||||||||
Net proceeds from issuance of common stock | 7,876 | 7,437 | 7,375 | ||||||||||||||
Dividends paid | (116,009) | (112,028) | (90,956) | ||||||||||||||
Acquisition of treasury stock | — | (43,909) | (39,748) | ||||||||||||||
Net cash provided by (used in) financing activities | (189,629) | (302,112) | 420,994 | ||||||||||||||
Net increase (decrease) in Cash and Cash Equivalents | (183,507) | 342,652 | (778) | ||||||||||||||
Cash and Cash Equivalents at Beginning of Year | 352,715 | 10,063 | 10,841 | ||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 169,208 | $ | 352,715 | $ | 10,063 |
/s/ CURTIS J. MYERS | ||
Curtis J. Myers Chairman and Chief Executive Officer | ||
/s/ MARK R. MCCOLLOM | ||
Mark R. McCollom Senior Executive Vice President and Chief Financial Officer |
Philadelphia, Pennsylvania | ||
March 1, 2023 |
10.4 | ||||||||
10.5 | ||||||||
10.6 | ||||||||
10.7 | ||||||||
10.8 | Form of Option Award and Form of Restricted Stock Award between Fulton Financial Corporation and Officers of the Corporation (Incorporated by reference to Exhibits 10.1 and 10.2, respectively, of the Fulton Financial Corporation Current Report on Form 8-K filed June 19, 2013). * | |||||||
10.9 | ||||||||
10.10 | ||||||||
10.11 | ||||||||
10.12 | ||||||||
10.13 | ||||||||
10.14 |
FULTON FINANCIAL CORPORATION | |||||||||||
(Registrant) | |||||||||||
Dated: | March 1, 2023 | By: | /S/ CURTIS J. MYERS | ||||||||
Curtis J. Myers, Chairman and Chief Executive Officer |
Signature | Capacity | Date | ||||||||||||
/S/ JENNIFER CRAIGHEAD CAREY | * | Director | March 1, 2023 | |||||||||||
Jennifer Craighead Carey | ||||||||||||||
/S/ LISA CRUTCHFIELD | * | Director | March 1, 2023 | |||||||||||
Lisa Crutchfield | ||||||||||||||
/S/ ANTHONY L. COSSETTI | Executive Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer) | March 1, 2023 | ||||||||||||
Anthony L. Cossetti | ||||||||||||||
/S/ DENISE L. DEVINE | * | Director | March 1, 2023 | |||||||||||
Denise L. Devine | ||||||||||||||
/S/ STEVEN S. ETTER | * | Director | March 1, 2023 | |||||||||||
Steven S. Etter | ||||||||||||||
/S/ ANTOINETTE M. PERGOLIN | * | Director | March 1, 2023 | |||||||||||
Antoinette M. Pergolin | ||||||||||||||
/S/ GEORGE W. HODGES | * | Director | March 1, 2023 | |||||||||||
George W. Hodges | ||||||||||||||
/S/ MARK R. MCCOLLOM | Senior Executive Vice President | March 1, 2023 | ||||||||||||
Mark R. McCollom | and Chief Financial Officer | |||||||||||||
(Principal Financial Officer) | ||||||||||||||
Signature | Capacity | Date | ||||||||||||
/S/GEORGE K. MARTIN | * | Director | March 1, 2023 | |||||||||||
George K. Martin | ||||||||||||||
/S/ JAMES R. MOXLEY, III | * | Director | March 1, 2023 | |||||||||||
James R. Moxley, III | ||||||||||||||
/S/ CURTIS J. MYERS | Chairman and Chief Executive Officer (Principal Executive Officer) | March 1, 2023 | ||||||||||||
Curtis J. Myers | ||||||||||||||
/S/ SCOTT A. SNYDER | * | Director | March 1, 2023 | |||||||||||
Scott A. Snyder | ||||||||||||||
/S/ RONALD H. SPAIR | * | Director | March 1, 2023 | |||||||||||
Ronald H. Spair | ||||||||||||||
/S/ MARK F. STRAUSS | * | Director | March 1, 2023 | |||||||||||
Mark F. Strauss | ||||||||||||||
/S/ E. PHILIP WENGER | Director | March 1, 2023 | ||||||||||||
E. Philip Wenger | ||||||||||||||
*By /S/ NATASHA R. LUDDINGTON | March 1, 2023 | |||||||||||||
Natasha R. Luddington | ||||||||||||||
Attorney-in-Fact |
Subsidiary | State of Incorporation or Organization | Name Under Which Business is Conducted | ||||||||||||
Fulton Bank, N.A. | United States of America | Fulton Financial Advisors | ||||||||||||
One Penn Square | Fulton Private Bank | |||||||||||||
P.O. Box 4887 | Fulton Mortgage Company | |||||||||||||
Lancaster, Pennsylvania 17604 | ||||||||||||||
Fulton Financial Realty Company | Pennsylvania | Fulton Financial Realty Company | ||||||||||||
One Penn Square | ||||||||||||||
P.O. Box 4887 | ||||||||||||||
Lancaster, Pennsylvania 17604 | ||||||||||||||
Central Pennsylvania Financial Corp. | Pennsylvania | Central Pennsylvania Financial Corp. | ||||||||||||
100 W. Independence Street | ||||||||||||||
Shamokin, PA 17872 | ||||||||||||||
Fulton Insurance Services Group, Inc. | Pennsylvania | Fulton Insurance Services Group, Inc. | ||||||||||||
One Penn Square | ||||||||||||||
P.O. Box 7989 | ||||||||||||||
Lancaster, Pennsylvania 17604 | ||||||||||||||
FFC Penn Square, Inc. | Delaware | FFC Penn Square, Inc. | ||||||||||||
P.O. Box 609 | ||||||||||||||
Georgetown, DE 19947 | ||||||||||||||
Fulton Community Partner, LLC | Delaware | Fulton Community Partner, LLC | ||||||||||||
One Penn Square | ||||||||||||||
P.O. Box 7989 | ||||||||||||||
Lancaster, Pennsylvania, 17604 |
/s/ JENNIFER CRAIGHEAD CAREY | January 17, 2023 | |||||||
Jennifer Craighead Carey | ||||||||
Director | Date |
/s/ LISA CRUTCHFIELD | January 24, 2023 | |||||||
Lisa Crutchfield | ||||||||
Director | Date |
/s/ DENISE L. DEVINE | January 17, 2023 | |||||||
Denise L. Devine | ||||||||
Director | Date |
/s/ STEVEN S. ETTER | January 15, 2023 | |||||||
Steven S. Etter | ||||||||
Director | Date |
/s/ GEORGE K. MARTIN | February 13, 2023 | |||||||
George K. Martin | ||||||||
Director | Date |
/s/ GEORGE W. HODGES | January 15, 2023 | |||||||
George W. Hodges | ||||||||
Director | Date |
/s/ JAMES R. MOXLEY, III | January 15, 2023 | |||||||
James R. Moxley, III | ||||||||
Director | Date |
/s/ ANTOINETTE M. PERGOLIN | January 17, 2023 | |||||||
Antoinette M. Pergolin | ||||||||
Director | Date |
/s/ SCOTT A. SNYDER | January 14, 2023 | |||||||
Scott A. Snyder | ||||||||
Director | Date |
/s/ RONALD H. SPAIR | January 21, 2023 | |||||||
Ronald H. Spair | ||||||||
Director | Date |
/s/ MARK F. STRAUSS | January 17, 2023 | |||||||
Mark F. Strauss | ||||||||
Director | Date |
Date: | March 1, 2023 | |||||||
/s/ Curtis J. Myers | ||||||||
Curtis J. Myers | ||||||||
Chairman and Chief Executive Officer |
Date: | March 1, 2023 | |||||||
/s/ Mark R. McCollom | ||||||||
Mark R. McCollom | ||||||||
Senior Executive Vice President and Chief Financial Officer |
Date: | March 1, 2023 | |||||||
/s/ Curtis J. Myers | ||||||||
Curtis J. Myers | ||||||||
Chairman and Chief Executive Officer |
March 1, 2023 | |||||
/s/ Mark R. McCollom | |||||
Mark R. McCollom | |||||
Senior Executive Vice President and Chief Financial Officer | |||||