☒ | QUARTERLY 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(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $2.50 | 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 |
Description | Page | |||||||
Glossary of Terms | ||||||||
PART I. FINANCIAL INFORMATION | ||||||||
(a) | ||||||||
(b) | ||||||||
(c) | ||||||||
(d) | ||||||||
(e) | ||||||||
(f) | ||||||||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | ||||||||
Item 3. Defaults Upon Senior Securities - (not applicable) | ||||||||
Item 4. Mine Safety Disclosures - (not applicable) | ||||||||
Item 5. Other Information - (none to be reported) | ||||||||
GLOSSARY OF DEFINED ACRONYMS AND TERMS | ||||||||
2023 Repurchase Program | The authorization to repurchase up to $100 million of the Corporation's common stock commencing January 1, 2023 and expiring December 31, 2023 | |||||||
ACL | Allowance for credit losses | |||||||
AFS | Available for sale | |||||||
ALCO | Asset/Liability Management Committee | |||||||
AOCI | Accumulated other comprehensive (loss) income | |||||||
ASC | Accounting Standards Codification | |||||||
ASU | Accounting Standards Update | |||||||
BHCA | Bank Holding Company Act of 1956, as amended | |||||||
bp or bps | Basis point(s) | |||||||
Capital Rules | Regulatory capital requirements applicable to the Corporation and Fulton Bank | |||||||
CECL Day 1 Provision | Initial provision for credit losses required on non-purchased credit deteriorated loans acquired in the Merger | |||||||
Corporation or Company | Fulton Financial Corporation | |||||||
COVID-19 | Coronavirus | |||||||
Directors' Plan | Amended and Restated Directors’ Equity Participation Plan | |||||||
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act | |||||||
Employee Equity Plan | 2022 Amended and Restated Equity and Cash Incentive Compensation Plan | |||||||
ETR | Effective tax rate | |||||||
Exchange Act | Securities Exchange Act of 1934 | |||||||
FASB | Financial Accounting Standards Board | |||||||
FDIC | Federal Deposit Insurance Corporation | |||||||
Fed Funds Rate | Target federal funds rate | |||||||
Federal Reserve Board | Board of Governors of the Federal Reserve System | |||||||
FHLB | Federal Home Loan Bank | |||||||
FOMC | Federal Open Market Committee | |||||||
Foreign Currency Nostro Accounts | Foreign currency with international correspondent banks | |||||||
FRB | Federal Reserve Bank | |||||||
FTE | Fully taxable-equivalent | |||||||
Fulton Bank or the Bank | Fulton Bank, N.A. | |||||||
GAAP | U.S. generally accepted accounting principles | |||||||
HTM | Held to maturity | |||||||
LIBOR | London Interbank Offered Rate | |||||||
Management's Discussion | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||
Merger | The acquisition by the Corporation of Prudential Bancorp that was completed effective as of July 1, 2022 | |||||||
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 | |||||||
Net loans | Loan and lease receivables (net of unearned income) | |||||||
NIM | Net interest margin | |||||||
N/M | Not meaningful | |||||||
OBS | Off-balance-sheet | |||||||
OCI | Other comprehensive income | |||||||
OREO | Other real estate owned |
Pension Plan | Defined Benefit Pension Plan | |||||||
Postretirement Plan | Postretirement Benefits Plan | |||||||
PPP | Paycheck Protection Program | |||||||
Prudential Bancorp | Prudential Bancorp, Inc. | |||||||
PSU | Performance-based restricted stock unit | |||||||
RSU | Restricted stock unit | |||||||
SBA | Small Business Administration | |||||||
SEC | United States Securities and Exchange Commission | |||||||
TCI | Tax credit investment | |||||||
TDR | Troubled debt restructuring | |||||||
TruPS | Trust Preferred Securities |
March 31, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 129,003 | $ | 126,898 | |||||||
Interest-bearing deposits with other banks | 437,750 | 555,023 | |||||||||
Cash and cash equivalents | 566,753 | 681,921 | |||||||||
FRB and FHLB stock | 107,605 | 130,186 | |||||||||
Loans held for sale | 6,507 | 7,264 | |||||||||
Investment securities | |||||||||||
AFS, at estimated fair value | 2,642,389 | 2,646,767 | |||||||||
HTM, at amortized cost | 1,307,712 | 1,321,256 | |||||||||
Net loans | 20,670,188 | 20,279,547 | |||||||||
Less: ACL - loans | (278,695) | (269,366) | |||||||||
Loans, net | 20,391,493 | 20,010,181 | |||||||||
Net premises and equipment | 216,059 | 225,141 | |||||||||
Accrued interest receivable | 90,267 | 91,579 | |||||||||
Goodwill and net intangible assets | 563,502 | 560,824 | |||||||||
Other assets | 1,219,889 | 1,256,583 | |||||||||
Total Assets | $ | 27,112,176 | $ | 26,931,702 | |||||||
LIABILITIES | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing | $ | 6,403,484 | $ | 7,006,388 | |||||||
Interest-bearing | 14,913,100 | 13,643,150 | |||||||||
Total Deposits | 21,316,584 | 20,649,538 | |||||||||
Borrowings: | |||||||||||
Federal funds purchased | 525,000 | 191,000 | |||||||||
Federal Home Loan Bank advances | 747,000 | 1,250,000 | |||||||||
Senior debt and subordinated debt | 539,814 | 539,634 | |||||||||
Other borrowings | 634,956 | 890,573 | |||||||||
Total borrowings | 2,446,770 | 2,871,207 | |||||||||
Accrued interest payable | 11,892 | 10,185 | |||||||||
Other liabilities | 717,932 | 821,015 | |||||||||
Total Liabilities | $ | 24,493,178 | $ | 24,351,945 | |||||||
SHAREHOLDERS' EQUITY | |||||||||||
Preferred stock, no par value, 10.0 million shares authorized; Series A, 0.2 million shares authorized and issued as of March 31, 2023 and December 31, 2022, liquidation preference of $1,000 per share | 192,878 | 192,878 | |||||||||
Common stock, $2.50 par value, 600.0 million shares authorized, 224.7 million shares issued as of March 31, 2023 and 224.6 million issued as of December 31, 2022 | 561,853 | 561,511 | |||||||||
Additional paid-in capital | 1,544,758 | 1,541,840 | |||||||||
Retained earnings | 1,491,701 | 1,450,758 | |||||||||
Accumulated other comprehensive (loss) income | (350,992) | (385,476) | |||||||||
Treasury stock, at cost, 59.3 million shares as of March 31, 2023 and 57.0 million shares as of December 31, 2022 | (821,200) | (781,754) | |||||||||
Total Shareholders' Equity | 2,618,998 | 2,579,757 | |||||||||
Total Liabilities and Shareholders' Equity | $ | 27,112,176 | $ | 26,931,702 | |||||||
See Notes to Consolidated Financial Statements |
(dollars in thousands, except per-share data) | Three months ended March 31 | ||||||||||
2023 | 2022 | ||||||||||
Interest Income | |||||||||||
Loans, including fees | $ | 260,651 | $ | 149,737 | |||||||
Investment securities | 25,521 | 22,353 | |||||||||
Other interest income | 3,648 | 911 | |||||||||
Total Interest Income | 289,820 | 173,001 | |||||||||
Interest Expense | |||||||||||
Deposits | 41,620 | 5,605 | |||||||||
Federal funds purchased | 6,035 | — | |||||||||
Federal Home Loan Bank advances | 15,473 | — | |||||||||
Senior debt and subordinated debt | 5,344 | 5,958 | |||||||||
Other borrowings and interest-bearing liabilities | 5,761 | 128 | |||||||||
Total Interest Expense | 74,233 | 11,691 | |||||||||
Net Interest Income | 215,587 | 161,310 | |||||||||
Provision for credit losses | 24,544 | (6,950) | |||||||||
Net Interest Income After Provision for Credit Losses | 191,043 | 168,260 | |||||||||
Non-Interest Income | |||||||||||
Wealth management | 18,062 | 19,428 | |||||||||
Commercial banking | 17,513 | 16,008 | |||||||||
Consumer banking | 11,217 | 11,674 | |||||||||
Mortgage banking | 1,970 | 4,576 | |||||||||
Other | 2,968 | 3,551 | |||||||||
Non-Interest Income Before Investment Securities Gains | 51,730 | 55,237 | |||||||||
Investment securities gains, net | 23 | 19 | |||||||||
Total Non-Interest Income | 51,753 | 55,256 | |||||||||
Non-Interest Expense | |||||||||||
Salaries and employee benefits | 89,283 | 84,464 | |||||||||
Data processing and software | 15,796 | 14,315 | |||||||||
Net occupancy | 14,438 | 14,522 | |||||||||
Other outside services | 10,126 | 8,167 | |||||||||
FDIC insurance | 4,795 | 3,209 | |||||||||
State taxes | 3,479 | 3,037 | |||||||||
Equipment | 3,389 | 3,423 | |||||||||
Professional fees | 2,392 | 1,792 | |||||||||
Marketing | 1,886 | 1,320 | |||||||||
Intangible amortization | 674 | 176 | |||||||||
Merger-related expenses | — | 401 | |||||||||
Other | 13,358 | 11,152 | |||||||||
Total Non-Interest Expense | 159,616 | 145,978 | |||||||||
Income Before Income Taxes | 83,180 | 77,538 | |||||||||
Income taxes | 14,866 | 13,250 | |||||||||
Net Income | 68,314 | 64,288 | |||||||||
Preferred stock dividends | (2,562) | (2,562) | |||||||||
Net Income Available to Common Shareholders | $ | 65,752 | $ | 61,726 | |||||||
PER SHARE: | |||||||||||
Net income available to common shareholders (basic) | $ | 0.39 | $ | 0.38 | |||||||
Net income available to common shareholders (diluted) | 0.39 | 0.38 | |||||||||
Cash dividends | 0.15 | 0.15 | |||||||||
See Notes to Consolidated Financial Statements |
Three months ended March 31 | |||||||||||
2023 | 2022 | ||||||||||
Net Income | $ | 68,314 | $ | 64,288 | |||||||
Other Comprehensive Income/(Loss), net of tax: | |||||||||||
Unrealized gains (losses) on AFS investment securities | |||||||||||
Unrealized gains (losses) on securities | 32,641 | (153,860) | |||||||||
Reclassification adjustment for securities net change included in net income | 18 | 15 | |||||||||
Amortization of net unrealized gains on AFS securities transferred to HTM | 1,477 | 436 | |||||||||
Net unrealized gains (losses) on AFS investment securities | 34,136 | (153,409) | |||||||||
Unrealized gains (losses) on interest rate derivatives used in cash flow hedges | |||||||||||
Net unrealized holding losses arising during the period | (5,213) | (31,376) | |||||||||
Reclassification adjustment for net change realized in net income | 5,536 | (1,506) | |||||||||
Net unrealized gains (losses) on interest rate derivatives used in cash flow hedges | 323 | (32,882) | |||||||||
Defined benefit pension plan and postretirement benefits | |||||||||||
Amortization of net unrecognized pension and postretirement items | 25 | 25 | |||||||||
Other Comprehensive Income (Loss) | 34,484 | (186,266) | |||||||||
Total Comprehensive Income (Loss) | $ | 102,798 | $ | (121,978) | |||||||
See Notes to Consolidated Financial Statements |
Preferred Stock | Common Stock | Additional | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Paid-in Capital | |||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Net income | 68,314 | 68,314 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 34,484 | 34,484 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued | 209 | 342 | 1,250 | 1,003 | 2,595 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation awards | 1,668 | 1,668 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | (2,412) | (40,449) | (40,449) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividend | (2,562) | (2,562) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock cash dividends - $0.15 per share | (24,809) | (24,809) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | 200 | $ | 192,878 | 165,396 | $ | 561,853 | $ | 1,544,758 | $ | 1,491,701 | $ | (350,992) | $ | (821,200) | $ | 2,618,998 | |||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 64,288 | 64,288 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | (186,266) | (186,266) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued | 179 | 279 | 1,602 | 912 | 2,793 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation awards | 2,635 | 2,635 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividend | (2,562) | (2,562) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock cash dividends - $0.15 per share | (24,033) | (24,033) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | 200 | $ | 192,878 | 160,669 | $ | 560,045 | $ | 1,524,110 | $ | 1,320,076 | $ | (158,855) | $ | (868,719) | $ | 2,569,535 | ||||||||||||||||||||||||||||||||||||
See Notes to Consolidated Financial Statements |
(dollars in thousands) | Three months ended March 31 | ||||||||||
2023 | 2022 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 68,314 | $ | 64,288 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Provision for credit losses | 24,544 | (6,950) | |||||||||
Depreciation and amortization of premises and equipment | 7,319 | 7,510 | |||||||||
Net amortization of investment securities premiums | 2,981 | 3,356 | |||||||||
Investment securities gains, net | (23) | (19) | |||||||||
Gain on sales of mortgage loans held for sale | (656) | (3,026) | |||||||||
Proceeds from sales of mortgage loans held for sale | 41,928 | 169,010 | |||||||||
Originations of mortgage loans held for sale | (40,515) | (157,891) | |||||||||
Intangible amortization | 674 | 176 | |||||||||
Amortization of issuance costs and discounts on long-term borrowings | 180 | 206 | |||||||||
Stock-based compensation | 1,668 | 2,635 | |||||||||
Net change in deferred federal income tax | 28,174 | (55,200) | |||||||||
Net change in accrued salaries and benefits | (24,436) | (15,924) | |||||||||
Net change in life insurance cash surrender value | (2,830) | (27,347) | |||||||||
Other changes, net | (61,359) | (88,605) | |||||||||
Total adjustments | (22,351) | (172,069) | |||||||||
Net cash provided by (used in) operating activities | 45,963 | (107,781) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Proceeds from sales of AFS securities | 80,362 | 108,961 | |||||||||
Proceeds from principal repayments and maturities of AFS securities | 28,627 | 92,338 | |||||||||
Proceeds from principal repayments and maturities of HTM securities | 15,103 | 25,688 | |||||||||
Purchase of AFS securities | (64,996) | (335,199) | |||||||||
Purchase of HTM securities | — | (9,541) | |||||||||
Net change in FRB and FHLB stock | 22,581 | (94) | |||||||||
Net change in loans | (404,842) | (149,715) | |||||||||
Net purchases of premises and equipment | (2,437) | (5,410) | |||||||||
Net change in tax credit investments | (12,412) | (15,951) | |||||||||
Net cash used in investing activities | (338,014) | (288,923) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Net change in demand and savings deposits | (390,376) | 38,376 | |||||||||
Net change in time deposits | 1,057,432 | (70,701) | |||||||||
Net change in other borrowings | (424,617) | 35,676 | |||||||||
Repayments of senior debt and subordinated debt | — | (65,057) | |||||||||
Net proceeds from issuance of common stock | 2,595 | 2,793 | |||||||||
Dividends paid | (27,702) | (25,032) | |||||||||
Acquisition of treasury stock | (40,449) | — | |||||||||
Net cash provided by (used in) financing activities | 176,883 | (83,945) | |||||||||
Net decrease in Cash and Cash Equivalents | (115,168) | (480,649) | |||||||||
Cash and Cash Equivalents at Beginning of Period | 681,921 | 1,638,614 | |||||||||
Cash and Cash Equivalents at End of Period | $ | 566,753 | $ | 1,157,965 | |||||||
Supplemental Disclosures of Cash Flow Information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | 72,526 | $ | 13,978 | |||||||
Income taxes | 7,308 | 7,926 | |||||||||
See Notes to Consolidated Financial Statements |
Fair Value | ||||||||
(dollars 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 | 7,533 | |||||||
Investment securities | 287,126 | |||||||
Loans | 554,091 | |||||||
Premises and equipment | 9,538 | |||||||
Other assets | 71,795 | |||||||
Total assets | 930,083 | |||||||
Liabilities assumed: | ||||||||
Deposits | 532,170 | |||||||
Borrowings(1) | 284,000 | |||||||
Other liabilities | 14,482 | |||||||
Total liabilities | 830,652 | |||||||
Net assets acquired: | 99,431 | |||||||
Goodwill resulting from the Merger | $ | 19,625 | ||||||
July 1, 2022 | ||||||||||||||
Unpaid Principal Balance | Fair Value | |||||||||||||
(dollars in thousands) | ||||||||||||||
Real estate - commercial mortgage | $ | 224,904 | $ | 216,593 | ||||||||||
Commercial and industrial | 63,560 | 61,873 | ||||||||||||
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 | $ | 554,208 |
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 purchased credit deteriorated loans | $ | 25,792 |
March 31 | |||||
2023 | |||||
(dollars in thousands) | |||||
Goodwill at December 31, 2022 | $ | 550,539 | |||
Adjustments to goodwill from the Merger | 3,352 | ||||
Goodwill at March 31, 2023 | $ | 553,891 |
Three Months Ended March 31 | |||||||||||
2023 | 2022 | ||||||||||
(dollars in thousands) | |||||||||||
Net interest income | $ | 215,587 | $ | 166,998 | |||||||
Provision for credit losses | 24,544 | (4,050) | |||||||||
Net Interest Income After Provision for Credit Losses | 191,043 | 171,048 | |||||||||
Total noninterest income | 51,753 | 55,543 | |||||||||
Total noninterest expenses | 159,616 | 157,434 | |||||||||
Income Before Income Taxes | 83,180 | 69,157 | |||||||||
Income tax expense | 14,866 | 11,384 | |||||||||
Net Income | $ | 68,314 | $ | 57,773 | |||||||
March 31, 2023 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||
Available for Sale | (dollars in thousands) | ||||||||||||||||||||||
U.S. Government securities | $ | 225,844 | $ | — | $ | (5,791) | $ | 220,053 | |||||||||||||||
U.S. Government-sponsored agency securities | 1,047 | — | (30) | 1,017 | |||||||||||||||||||
State and municipal securities | 1,211,841 | 967 | (145,210) | 1,067,598 | |||||||||||||||||||
Corporate debt securities | 475,052 | — | (36,018) | 439,034 | |||||||||||||||||||
Collateralized mortgage obligations | 141,587 | — | (11,137) | 130,450 | |||||||||||||||||||
Residential mortgage-backed securities | 238,775 | 33 | (26,234) | 212,574 | |||||||||||||||||||
Commercial mortgage-backed securities | 651,767 | — | (80,104) | 571,663 | |||||||||||||||||||
Total | $ | 2,945,913 | $ | 1,000 | $ | (304,524) | $ | 2,642,389 | |||||||||||||||
Held to Maturity | |||||||||||||||||||||||
Residential mortgage-backed securities | $ | 444,431 | $ | — | $ | (52,078) | $ | 392,353 | |||||||||||||||
Commercial mortgage-backed securities | 863,281 | — | (130,607) | 732,674 | |||||||||||||||||||
Total | $ | 1,307,712 | $ | — | $ | (182,685) | $ | 1,125,027 |
December 31, 2022 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||
Available for Sale | (dollars in thousands) | ||||||||||||||||||||||
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 |
Gross Realized Gains | Gross Realized Losses | Net Gains (Losses) | |||||||||||||||
Three months ended | (dollars in thousands) | ||||||||||||||||
March 31, 2023 | $ | 283 | $ | (260) | $ | 23 | |||||||||||
March 31, 2022 | 1,546 | (1,527) | 19 | ||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
Available for Sale | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government securities | 1 | $ | 97,566 | $ | (2,210) | 2 | $ | 122,487 | $ | (3,581) | $ | 220,053 | $ | (5,791) | |||||||||||||||||||||||||||||||||
U.S. Government-sponsored agency securities | 1 | 1,017 | (30) | — | — | 1,017 | (30) | ||||||||||||||||||||||||||||||||||||||||
State and municipal securities | 86 | 238,922 | (6,326) | 258 | 735,187 | (138,884) | 974,109 | (145,210) | |||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 45 | 239,873 | (13,138) | 27 | 196,406 | (22,880) | 436,279 | (36,018) | |||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 37 | 29,944 | (1,499) | 59 | 100,506 | (9,638) | 130,450 | (11,137) | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 50 | 80,524 | (4,743) | 25 | 129,035 | (21,491) | 209,559 | (26,234) | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 75 | 138,365 | (4,501) | 61 | 433,298 | (75,603) | 571,663 | (80,104) | |||||||||||||||||||||||||||||||||||||||
Total available for sale | 295 | $ | 826,211 | $ | (32,447) | 432 | $ | 1,716,919 | $ | (272,077) | $ | 2,543,130 | $ | (304,524) | |||||||||||||||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 106 | $ | 238,862 | $ | (11,981) | 14 | $ | 153,491 | $ | (40,097) | $ | 392,353 | $ | (52,078) | |||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 20 | 257,006 | (17,272) | 40 | 475,668 | (113,335) | 732,674 | (130,607) | |||||||||||||||||||||||||||||||||||||||
Total held to maturity | 126 | $ | 495,868 | $ | (29,253) | 54 | $ | 629,159 | $ | (153,432) | $ | 1,125,027 | $ | (182,685) |
December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
Available for Sale | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
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 held to maturity | 127 | $ | 504,922 | $ | (38,304) | 53 | $ | 620,127 | $ | (157,903) | $ | 1,125,049 | $ | (196,207) |
March 31, 2023 | December 31, 2022 | ||||||||||
(dollars in thousands) | |||||||||||
Real estate - commercial mortgage | $ | 7,746,920 | $ | 7,693,835 | |||||||
Commercial and industrial | 4,600,696 | 4,477,537 | |||||||||
Real-estate - residential mortgage | 4,880,919 | 4,737,279 | |||||||||
Real-estate - home equity | 1,074,712 | 1,102,838 | |||||||||
Real-estate - construction | 1,326,754 | 1,269,925 | |||||||||
Consumer | 730,775 | 699,179 | |||||||||
Leases and other loans | 340,595 | 328,331 | |||||||||
Gross loans | 20,701,371 | 20,308,924 | |||||||||
Unearned income | (31,183) | (29,377) | |||||||||
Net loans | $ | 20,670,188 | $ | 20,279,547 |
March 31, 2023 | December 31, 2022 | ||||||||||
(dollars in thousands) | |||||||||||
ACL - loans | $ | 278,695 | $ | 269,366 | |||||||
Reserve for OBS credit exposures(1) | $ | 17,539 | $ | 16,328 |
Three months ended March 31 | |||||||||||
2023 | 2022 | ||||||||||
(dollars in thousands) | |||||||||||
Balance at beginning of period | $ | 269,366 | $ | 249,001 | |||||||
Loans charged off | (16,903) | (1,900) | |||||||||
Recoveries of loans previously charged off | 2,899 | 2,954 | |||||||||
Net loans (charged-off) recovered | (14,004) | 1,054 | |||||||||
Provision for credit losses | 23,333 | (6,350) | |||||||||
Balance at end of period | $ | 278,695 | $ | 243,705 | |||||||
Provision for OBS credit exposures | $ | 1,211 | $ | (600) | |||||||
Reserve for OBS credit exposures | $ | 17,539 | $ | 13,933 |
Real Estate Commercial Mortgage | Commercial and Industrial | Real Estate Residential Mortgage | Consumer and Home Equity | Real Estate Construction | Leases and other loans | Total | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | 69,456 | $ | 70,116 | $ | 83,250 | $ | 26,429 | $ | 10,743 | $ | 9,372 | $ | 269,366 | |||||||||||||||||||||||||||
Loans charged off | (13,362) | (612) | — | (2,206) | — | (723) | (16,903) | ||||||||||||||||||||||||||||||||||
Recoveries of loans previously charged off | 786 | 1,086 | 48 | 661 | 202 | 116 | 2,899 | ||||||||||||||||||||||||||||||||||
Net loans (charged off) recovered | (12,576) | 474 | 48 | (1,545) | 202 | (607) | (14,004) | ||||||||||||||||||||||||||||||||||
Provision for loan losses(1) | 9,376 | 6,536 | 2,911 | 2,419 | 701 | 1,390 | 23,333 | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | 66,256 | $ | 77,126 | $ | 86,209 | $ | 27,303 | $ | 11,646 | $ | 10,155 | $ | 278,695 | |||||||||||||||||||||||||||
Three months ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 87,970 | $ | 67,056 | $ | 54,236 | $ | 19,749 | $ | 12,941 | $ | 7,049 | $ | 249,001 | |||||||||||||||||||||||||||
Loans charged off | (152) | (227) | — | (1,052) | — | (469) | (1,900) | ||||||||||||||||||||||||||||||||||
Recoveries of loans previously charged off | 112 | 1,980 | 222 | 454 | 32 | 154 | 2,954 | ||||||||||||||||||||||||||||||||||
Net loans (charged off) recovered | (40) | 1,753 | 222 | (598) | 32 | (315) | 1,054 | ||||||||||||||||||||||||||||||||||
Provision for loan and lease losses(1) | (8,077) | (2,298) | 1,434 | 1,062 | 330 | 1,199 | (6,350) | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | 79,853 | $ | 66,511 | $ | 55,892 | $ | 20,213 | $ | 13,303 | $ | 7,933 | $ | 243,705 | |||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
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 | $ | 18,878 | $ | 39,531 | $ | 58,409 | $ | 39,722 | $ | 30,439 | $ | 70,161 | |||||||||||||||||||||||
Commercial and industrial | 16,090 | 15,789 | 31,879 | 14,804 | 12,312 | 27,116 | |||||||||||||||||||||||||||||
Real estate - residential mortgage | 23,450 | 977 | 24,427 | 25,315 | 979 | 26,294 | |||||||||||||||||||||||||||||
Real estate - home equity | 5,912 | 122 | 6,034 | 5,975 | 130 | 6,105 | |||||||||||||||||||||||||||||
Real estate - construction | 831 | 447 | 1,278 | 866 | 502 | 1,368 | |||||||||||||||||||||||||||||
Consumer | 25 | — | 25 | 92 | — | 92 | |||||||||||||||||||||||||||||
Leases and other loans | 2,995 | 9,256 | 12,251 | 4,052 | 9,255 | 13,307 | |||||||||||||||||||||||||||||
$ | 68,181 | $ | 66,122 | $ | 134,303 | $ | 90,826 | $ | 53,617 | $ | 144,443 |
March 31, 2023 | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans | ||||||||||||||||||||||||||||||
(in thousands) | Amortized | Amortized | ||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Cost Basis | Cost Basis | Total | ||||||||||||||||||||||||
Real estate - commercial mortgage | ||||||||||||||||||||||||||||||||
Pass | $ | 173,387 | $ | 1,015,881 | $ | 1,077,823 | $ | 943,188 | $ | 799,374 | $ | 3,170,784 | $ | 73,033 | $ | 305 | $ | 7,253,775 | ||||||||||||||
Special Mention | — | 14,438 | 65,362 | 19,804 | 34,352 | 169,568 | 2,728 | — | 306,252 | |||||||||||||||||||||||
Substandard or Lower | — | 2,668 | 19,190 | 48,655 | 24,531 | 91,606 | 243 | — | 186,893 | |||||||||||||||||||||||
Total real estate - commercial mortgage | 173,387 | 1,032,987 | 1,162,375 | 1,011,647 | 858,257 | 3,431,958 | 76,004 | 305 | 7,746,920 | |||||||||||||||||||||||
Real estate - commercial mortgage | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | (30) | — | (13,332) | (13,362) | |||||||||||||||||||||||
Commercial and industrial(1) | ||||||||||||||||||||||||||||||||
Pass | 379,383 | 689,276 | 444,738 | 379,630 | 301,392 | 748,118 | 1,394,101 | 6,517 | 4,343,155 | |||||||||||||||||||||||
Special Mention | 150 | 17,426 | 16,457 | 4,958 | 9,500 | 31,125 | 65,596 | 243 | 145,455 | |||||||||||||||||||||||
Substandard or Lower | 206 | 1,259 | 754 | 4,001 | 13,042 | 22,863 | 69,675 | 286 | 112,086 | |||||||||||||||||||||||
Total commercial and industrial | 379,739 | 707,961 | 461,949 | 388,589 | 323,934 | 802,106 | 1,529,372 | 7,046 | 4,600,696 | |||||||||||||||||||||||
Commercial and industrial(1) | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | — | (53) | (559) | (612) | |||||||||||||||||||||||
Real estate - construction(2) | ||||||||||||||||||||||||||||||||
Pass | 49,829 | 165,351 | 425,549 | 218,594 | 23,387 | 103,958 | 39,917 | — | 1,026,585 | |||||||||||||||||||||||
Special Mention | — | 1,218 | — | — | — | 29,283 | — | — | 30,501 | |||||||||||||||||||||||
Substandard or Lower | — | 305 | 2,079 | — | 2,238 | 4,148 | 2,284 | — | 11,054 | |||||||||||||||||||||||
Total real estate - construction | 49,829 | 166,874 | 427,628 | 218,594 | 25,625 | 137,389 | 42,201 | — | 1,068,140 | |||||||||||||||||||||||
Real estate - construction(2) | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Pass | $ | 602,599 | $ | 1,870,508 | $ | 1,948,110 | $ | 1,541,412 | $ | 1,124,153 | $ | 4,022,860 | $ | 1,507,051 | $ | 6,822 | $ | 12,623,515 | ||||||||||||||
Special Mention | 150 | 33,082 | 81,819 | 24,762 | 43,852 | 229,976 | 68,324 | 243 | 482,208 | |||||||||||||||||||||||
Substandard or Lower | 206 | 4,232 | 22,023 | 52,656 | 39,811 | 118,617 | 72,202 | 286 | 310,033 | |||||||||||||||||||||||
Total | $ | 602,955 | $ | 1,907,822 | $ | 2,051,952 | $ | 1,618,830 | $ | 1,207,816 | $ | 4,371,453 | $ | 1,647,577 | $ | 7,351 | $ | 13,415,756 |
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) | |||||||||||||||||||||||
Commercial and industrial(1) | ||||||||||||||||||||||||||||||||
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(1) | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | (36) | — | (21) | (365) | (1,192) | (776) | (2,390) | |||||||||||||||||||||||
Real estate - construction(2) | ||||||||||||||||||||||||||||||||
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(2) | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
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 |
March 31, 2023 | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans | ||||||||||||||||||||||||||||||
(dollars in thousands) | Amortized | Amortized | ||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Cost Basis | Cost Basis | Total | ||||||||||||||||||||||||
Real estate - residential mortgage | ||||||||||||||||||||||||||||||||
Performing | $ | 139,551 | $ | 961,137 | $ | 1,732,158 | $ | 1,041,054 | $ | 282,030 | $ | 678,413 | $ | — | $ | — | $ | 4,834,343 | ||||||||||||||
Nonperforming | — | 706 | 6,089 | 7,630 | 5,335 | 26,816 | — | — | 46,576 | |||||||||||||||||||||||
Total real estate - residential mortgage | 139,551 | 961,843 | 1,738,247 | 1,048,684 | 287,365 | 705,229 | — | — | 4,880,919 | |||||||||||||||||||||||
Real estate - residential mortgage | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer and real estate - home equity | ||||||||||||||||||||||||||||||||
Performing | 148,247 | 309,812 | 95,136 | 66,377 | 49,877 | 162,289 | 947,347 | 17,419 | 1,796,504 | |||||||||||||||||||||||
Nonperforming | — | 204 | 155 | 67 | 31 | 2,013 | 6,460 | 53 | 8,983 | |||||||||||||||||||||||
Total consumer and real estate - home equity | 148,247 | 310,016 | 95,291 | 66,444 | 49,908 | 164,302 | 953,807 | 17,472 | 1,805,487 | |||||||||||||||||||||||
Consumer and real estate - home equity | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | (325) | — | (1,881) | (2,206) | |||||||||||||||||||||||
Leases and other loans | ||||||||||||||||||||||||||||||||
Performing | 75,403 | 99,125 | 36,559 | 32,785 | 25,955 | 26,891 | — | — | 296,718 | |||||||||||||||||||||||
Nonperforming | — | 443 | — | — | — | 12,251 | — | — | 12,694 | |||||||||||||||||||||||
Leases and other loans | 75,403 | 99,568 | 36,559 | 32,785 | 25,955 | 39,142 | — | — | 309,412 | |||||||||||||||||||||||
Leases and other loans | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | (59) | (251) | (60) | (45) | (21) | (287) | — | — | (723) | |||||||||||||||||||||||
Construction - other | ||||||||||||||||||||||||||||||||
Performing | 8,997 | 202,286 | 38,473 | 8,858 | — | — | — | — | 258,614 | |||||||||||||||||||||||
Nonperforming | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total construction - other | 8,997 | 202,286 | 38,473 | 8,858 | — | — | — | — | 258,614 | |||||||||||||||||||||||
Construction - other | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Performing | $ | 372,198 | $ | 1,572,360 | $ | 1,902,326 | $ | 1,149,074 | $ | 357,862 | $ | 867,593 | $ | 947,347 | $ | 17,419 | $ | 7,186,179 | ||||||||||||||
Nonperforming | — | 1,353 | 6,244 | 7,697 | 5,366 | 41,080 | 6,460 | 53 | 68,253 | |||||||||||||||||||||||
Total | $ | 372,198 | $ | 1,573,713 | $ | 1,908,570 | $ | 1,156,771 | $ | 363,228 | $ | 908,673 | $ | 953,807 | $ | 17,472 | $ | 7,254,432 |
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 | ||||||||||||||
Nonperforming | 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) | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Nonperforming | 292 | 298 | 174 | 36 | 98 | 6,512 | 1,722 | 668 | 9,800 | |||||||||||||||||||||||
Total consumer and 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) | |||||||||||||||||||||||
Construction - other | ||||||||||||||||||||||||||||||||
Performing | 164,924 | 73,492 | 10,892 | — | 1,077 | — | — | — | 250,385 | |||||||||||||||||||||||
Nonperforming | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total construction - other | 164,924 | 73,492 | 10,892 | — | 1,077 | — | — | — | 250,385 | |||||||||||||||||||||||
Construction - other | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Leases and other loans | ||||||||||||||||||||||||||||||||
Performing | 146,198 | 39,427 | 40,024 | 29,309 | 15,019 | 15,670 | — | — | 285,647 | |||||||||||||||||||||||
Nonperforming | — | — | — | — | — | 13,307 | — | — | 13,307 | |||||||||||||||||||||||
Leases and other loans | 146,198 | 39,427 | 40,024 | 29,309 | 15,019 | 28,977 | — | — | 298,954 | |||||||||||||||||||||||
Leases and other loans | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | (506) | (167) | (140) | (80) | (47) | (1,191) | — | — | (2,131) | |||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Performing | $ | 1,661,656 | $ | 1,931,346 | $ | 1,185,464 | $ | 367,860 | $ | 149,193 | $ | 847,213 | $ | 842,226 | $ | 34,061 | $ | 7,019,019 | ||||||||||||||
Nonperforming | 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 |
March 31, 2023 | December 31, 2022 | ||||||||||
(dollars in thousands) | |||||||||||
Non-accrual loans | $ | 134,303 | $ | 144,443 | |||||||
Loans 90 days or more past due and still accruing(1) | 30,336 | 27,463 | |||||||||
Total non-performing loans | 164,639 | 171,906 | |||||||||
OREO(2) | 3,304 | 5,790 | |||||||||
Total non-performing assets | $ | 167,943 | $ | 177,696 |
30-59 | 60-89 | ≥ 90 Days | |||||||||||||||||||||||||||||||||
Days Past | Days Past | Past Due | Non- | ||||||||||||||||||||||||||||||||
Due | Due | and Accruing | Accrual | Current | Total | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||||||||
Real estate – commercial mortgage | $ | 19,251 | $ | 1,887 | $ | 2,913 | $ | 58,409 | $ | 7,664,460 | $ | 7,746,920 | |||||||||||||||||||||||
Commercial and industrial(1) | 6,428 | 1,279 | 1,676 | 31,879 | 4,559,434 | 4,600,696 | |||||||||||||||||||||||||||||
Real estate – residential mortgage | 34,483 | 5,779 | 22,149 | 24,427 | 4,794,081 | 4,880,919 | |||||||||||||||||||||||||||||
Real estate – home equity | 6,442 | 2,441 | 2,316 | 6,034 | 1,057,479 | 1,074,712 | |||||||||||||||||||||||||||||
Real estate – construction | 13,074 | 751 | 231 | 1,278 | 1,311,420 | 1,326,754 | |||||||||||||||||||||||||||||
Consumer | 5,840 | 1,400 | 608 | 25 | 722,902 | 730,775 | |||||||||||||||||||||||||||||
Leases and other loans(2) | 871 | 64 | 443 | 12,251 | 295,783 | 309,412 | |||||||||||||||||||||||||||||
Total | $ | 86,389 | $ | 13,601 | $ | 30,336 | $ | 134,303 | $ | 20,405,559 | $ | 20,670,188 |
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, 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 | |||||||||||||||||||||||||||||
Leases and other loans(2) | 348 | 122 | — | 13,307 | 285,177 | 298,954 | |||||||||||||||||||||||||||||
Total | $ | 88,349 | $ | 20,805 | $ | 27,463 | $ | 144,443 | $ | 19,998,487 | $ | 20,279,547 |
Term Extension | |||||||||||
Three months ended March 31, 2023 | |||||||||||
Amortization Cost Basis | % of Class of Financing Receivable | ||||||||||
(dollars in thousands) | |||||||||||
Real estate - commercial mortgage | $ | 1,426 | 0.02 | % | |||||||
Commercial and industrial | 6,227 | 0.14 | |||||||||
Real estate - residential mortgage | 1,182 | 0.02 | |||||||||
Total | $ | 8,835 |
Term Extension | |||||
Financial Effect | |||||
Real estate - commercial mortgage | Added a weighted-average 1.91 years to the life of loans, which reduced monthly payment amounts for the borrowers. | ||||
Commercial and industrial | Added a weighted-average 0.77 years to the life of loans, which reduced monthly payment amounts for the borrowers. | ||||
Real estate - residential mortgage | Added a weighted-average 3.51 years to the life of loans, which reduced monthly payment amounts for the borrowers. | ||||
30-89 | 90+ | Total | |||||||||||||||||||||
Days Past | Past Due | Past | |||||||||||||||||||||
Current | Due | and Accruing | Due | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Real estate - commercial mortgage | $ | 1,426 | $ | — | $ | — | $ | — | |||||||||||||||
Commercial and industrial | 6,227 | — | — | — | |||||||||||||||||||
Real estate - residential mortgage | 1,182 | — | — | — | |||||||||||||||||||
Total | $ | 8,835 | $ | — | $ | — | $ | — |
Three months ended March 31 | |||||||||||
2023 | 2022 | ||||||||||
(dollars in thousands) | |||||||||||
Amortized cost: | |||||||||||
Balance at beginning of period | $ | 34,217 | $ | 35,993 | |||||||
Originations of MSRs | 196 | 1,355 | |||||||||
Amortization | (1,331) | (1,724) | |||||||||
Balance at end of period | $ | 33,082 | $ | 35,624 | |||||||
Valuation allowance: | |||||||||||
Balance at beginning of period | $ | — | $ | (600) | |||||||
Reduction (addition) to valuation allowance | — | 600 | |||||||||
Balance at end of period | $ | — | $ | — | |||||||
Net MSRs at end of period | $ | 33,082 | $ | 35,624 | |||||||
Estimated fair value of MSRs at end of period | $ | 47,223 | $ | 47,609 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Notional Amount | Asset (Liability) Fair Value | Notional Amount | Asset (Liability) Fair Value | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Interest Rate Locks with Customers | |||||||||||||||||||||||
Positive fair values | $ | 95,469 | $ | 420 | $ | 70,836 | $ | 182 | |||||||||||||||
Negative fair values | 1,622 | (11) | 4,939 | (51) | |||||||||||||||||||
Forward Commitments | |||||||||||||||||||||||
Positive fair values | — | — | — | — | |||||||||||||||||||
Negative fair values | 8,500 | (31) | 10,000 | (147) | |||||||||||||||||||
Interest Rate Derivatives with Customers | |||||||||||||||||||||||
Positive fair values | 422,891 | 10,324 | 171,317 | 3,337 | |||||||||||||||||||
Negative fair values | 3,628,451 | (220,342) | 3,802,480 | (280,401) | |||||||||||||||||||
Interest Rate Derivatives with Dealer Counterparties | |||||||||||||||||||||||
Positive fair values | 3,628,451 | 125,932 | 3,802,480 | 161,956 | |||||||||||||||||||
Negative fair values | 422,891 | (10,690) | 171,317 | (3,703) | |||||||||||||||||||
Interest Rate Derivatives used in Cash Flow Hedges | |||||||||||||||||||||||
Positive fair values | 1,500,000 | 5,646 | 600,000 | 1,321 | |||||||||||||||||||
Negative fair values | — | — | 1,000,000 | (12,163) | |||||||||||||||||||
Foreign Exchange Contracts with Customers | |||||||||||||||||||||||
Positive fair values | 19,026 | 180 | 11,123 | 571 | |||||||||||||||||||
Negative fair values | 10,290 | (380) | 3,672 | (85) | |||||||||||||||||||
Foreign Exchange Contracts with Correspondent Banks | |||||||||||||||||||||||
Positive fair values | 12,725 | 435 | 4,887 | 101 | |||||||||||||||||||
Negative fair values | 7,836 | (56) | 8,280 | (499) | |||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | |||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
Interest Rate Products | $ | 12,535 | $ | 12,535 | $ | — | Interest Income | $ | (7,157) | $ | (7,157) | $ | — | ||||||||||||||||||||||||||||
Three months ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Interest Rate Products | (40,563) | (40,563) | — | Interest Income | 1,948 | 1,948 | — | ||||||||||||||||||||||||||||||||||
Consolidated Statements of Income Classification | |||||||||||
Interest Income | |||||||||||
Three months ended March 31 | |||||||||||
2023 | 2022 | ||||||||||
(dollars 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 | $ | (7,157) | $ | 1,948 | |||||||
Interest contracts: | |||||||||||
Amount of gain (loss) reclassified from AOCI into income | (7,157) | 1,948 | |||||||||
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 | (7,157) | 1,948 | |||||||||
Amount of gain (loss) reclassified from AOCI into income - excluded component | — | — |
Consolidated Statements of Income Classification | Three months ended March 31 | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Mortgage banking derivatives (1) | Mortgage banking income | $ | 394 | $ | 385 | ||||||||||||
Interest rate derivatives | Other expense | — | — | ||||||||||||||
Foreign exchange contracts | Other income | 91 | 47 | ||||||||||||||
Net fair value gains/(losses) on derivative financial instruments | $ | 485 | $ | 432 |
March 31, 2023 | December 31, 2022 | ||||||||||
(dollars in thousands) | |||||||||||
Amortized cost (1) | $ | 6,362 | $ | 7,180 | |||||||
Fair value | 6,507 | 7,264 |
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 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||
Interest rate derivative assets | $ | 141,902 | $ | — | $ | — | $ | 141,902 | |||||||||||||||
Foreign exchange derivative assets with correspondent banks | 435 | (435) | — | — | |||||||||||||||||||
Total | $ | 142,337 | $ | (435) | $ | — | $ | 141,902 | |||||||||||||||
Interest rate derivative liabilities | $ | 231,032 | $ | (5,641) | $ | (96,102) | $ | 129,289 | |||||||||||||||
Foreign exchange derivative liabilities with correspondent banks | 56 | (435) | — | (379) | |||||||||||||||||||
Total | $ | 231,088 | $ | (6,076) | $ | (96,102) | $ | 128,910 | |||||||||||||||
December 31, 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 |
Before-Tax Amount | Tax Effect | Net of Tax Amount | |||||||||||||||
Three months ended March 31, 2023 | (dollars in thousands) | ||||||||||||||||
Net unrealized income on securities | $ | 42,199 | $ | (9,558) | $ | 32,641 | |||||||||||
Reclassification adjustment for securities net change included in net income (1) | 23 | (5) | 18 | ||||||||||||||
Amortization of net unrealized gains on AFS securities transferred to HTM (2) | 1,910 | (433) | 1,477 | ||||||||||||||
Net unrealized holding losses arising during the period on interest rate derivatives used in cash flow hedges(3) | 12,535 | (17,748) | (5,213) | ||||||||||||||
Reclassification adjustment for net change realized in net income on interest rate derivatives used in cash flow hedges(3) | 7,157 | (1,621) | 5,536 | ||||||||||||||
Amortization of net unrecognized pension and postretirement items (4) | 32 | (7) | 25 | ||||||||||||||
Total Other Comprehensive Income | $ | 63,856 | $ | (29,372) | $ | 34,484 | |||||||||||
Three months ended March 31, 2022 | |||||||||||||||||
Net unrealized losses on securities | $ | (199,068) | $ | 45,208 | $ | (153,860) | |||||||||||
Reclassification adjustment for securities net change included in net income (1) | 19 | (4) | 15 | ||||||||||||||
Amortization of net unrealized gains on AFS securities transferred to HTM (2) | 564 | (128) | 436 | ||||||||||||||
Net unrealized holding losses arising during the period on interest rate derivatives used in cash flow hedges | (40,563) | 9,187 | (31,376) | ||||||||||||||
Reclassification adjustment for net change realized in net income on interest rate derivatives used in cash flow hedges | (1,948) | 442 | (1,506) | ||||||||||||||
Amortization of net unrecognized pension and postretirement items (4) | 32 | (7) | 25 | ||||||||||||||
Total Other Comprehensive Loss | $ | (240,964) | $ | 54,698 | $ | (186,266) | |||||||||||
Unrealized Gains (Losses) on Investment Securities | Net Unrealized Gain (Loss) on Interest Rate Derivatives used in Cash Flow Hedges | Unrecognized Pension and Postretirement Plan Income (Costs) | Total | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Three months ended March 31, 2023 | |||||||||||||||||||||||
Balance at December 31, 2022 | $ | (316,231) | $ | (61,776) | $ | (7,469) | $ | (385,476) | |||||||||||||||
OCI before reclassifications | 32,641 | — | — | 32,641 | |||||||||||||||||||
Amounts reclassified from AOCI | 18 | 323 | 25 | 366 | |||||||||||||||||||
Amortization of net unrealized losses on AFS securities transferred to HTM | 1,477 | — | — | 1,477 | |||||||||||||||||||
Balance at March 31, 2023 | $ | (282,095) | $ | (61,453) | $ | (7,444) | $ | (350,992) | |||||||||||||||
Three months ended March 31, 2022 | |||||||||||||||||||||||
Balance at December 31, 2021 | $ | 40,441 | $ | (4,817) | $ | (8,213) | $ | 27,411 | |||||||||||||||
OCI before reclassifications | (153,860) | — | — | (153,860) | |||||||||||||||||||
Amounts reclassified from AOCI | 15 | (32,882) | 25 | (32,842) | |||||||||||||||||||
Amortization of net unrealized losses on AFS securities transferred to HTM | 436 | — | — | 436 | |||||||||||||||||||
Balance at March 31, 2022 | $ | (112,968) | $ | (37,699) | $ | (8,188) | $ | (158,855) | |||||||||||||||
March 31, 2023 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Loans held for sale | $ | — | $ | 6,507 | $ | — | $ | 6,507 | |||||||||||||||
Available for sale investment securities: | |||||||||||||||||||||||
U.S. Government securities | 220,053 | — | — | 220,053 | |||||||||||||||||||
U.S. Government-sponsored agency securities | — | 1,017 | — | 1,017 | |||||||||||||||||||
State and municipal securities | — | 1,067,598 | — | 1,067,598 | |||||||||||||||||||
Corporate debt securities | — | 439,034 | — | 439,034 | |||||||||||||||||||
Collateralized mortgage obligations | — | 130,450 | — | 130,450 | |||||||||||||||||||
Residential mortgage-backed securities | — | 212,574 | — | 212,574 | |||||||||||||||||||
Commercial mortgage-backed securities | — | 571,663 | — | 571,663 | |||||||||||||||||||
Total available for sale investment securities | 220,053 | 2,422,336 | — | 2,642,389 | |||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Investments held in Rabbi Trust | 26,211 | — | — | 26,211 | |||||||||||||||||||
Derivative assets | 615 | 142,322 | — | 142,937 | |||||||||||||||||||
Total assets | $ | 246,879 | $ | 2,571,165 | $ | — | $ | 2,818,044 | |||||||||||||||
Other liabilities: | |||||||||||||||||||||||
Deferred compensation liabilities | $ | 26,211 | $ | — | $ | — | $ | 26,211 | |||||||||||||||
Derivative liabilities | 436 | 231,074 | — | 231,510 | |||||||||||||||||||
Total liabilities | $ | 26,647 | $ | 231,074 | $ | — | $ | 257,721 |
December 31, 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 | |||||||||||||||||||
Other assets: | |||||||||||||||||||||||
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 | |||||||||||||||
Other liabilities: | |||||||||||||||||||||||
Deferred compensation liabilities | $ | 23,435 | $ | — | $ | — | $ | 23,435 | |||||||||||||||
Derivative liabilities | 584 | 296,465 | — | 297,049 | |||||||||||||||||||
Total liabilities | $ | 24,019 | $ | 296,465 | $ | — | $ | 320,484 |
March 31, 2023 | December 31, 2022 | ||||||||||
(dollars in thousands) | |||||||||||
Loans, net | $ | 113,799 | $ | 121,115 | |||||||
OREO | 3,304 | 5,790 | |||||||||
MSRs(1) | 47,223 | 50,044 | |||||||||
Total assets | $ | 164,326 | $ | 176,949 |
March 31, 2023 | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(dollars in thousands) | |||||||||||||||||
FINANCIAL ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 566,753 | $ | 566,753 | $ | — | $ | — | $ | 566,753 | |||||||
FRB and FHLB stock | 107,605 | — | 107,605 | — | 107,605 | ||||||||||||
Loans held for sale | 6,507 | — | 6,507 | — | 6,507 | ||||||||||||
AFS securities | 2,642,389 | 220,053 | 2,422,336 | — | 2,642,389 | ||||||||||||
HTM securities | 1,307,712 | — | 1,125,027 | — | 1,125,027 | ||||||||||||
Loans, net | 20,391,493 | — | — | 19,132,951 | 19,132,951 | ||||||||||||
Accrued interest receivable | 90,267 | 90,267 | — | — | 90,267 | ||||||||||||
Other assets | 619,022 | 426,173 | 142,322 | 50,527 | 619,022 | ||||||||||||
FINANCIAL LIABILITIES | |||||||||||||||||
Demand and savings deposits | $ | 18,461,527 | $ | 18,461,527 | $ | — | $ | — | $ | 18,461,527 | |||||||
Brokered deposits | 960,919 | 161,395 | 798,376 | — | 959,771 | ||||||||||||
Time deposits | 1,894,138 | — | 1,858,982 | — | 1,858,982 | ||||||||||||
Accrued interest payable | 11,892 | 11,892 | — | — | 11,892 | ||||||||||||
Federal funds purchased | 525,000 | 525,000 | — | — | 525,000 | ||||||||||||
Federal Home Loan Bank advances | 747,000 | 747,000 | — | — | 747,000 | ||||||||||||
Senior debt and subordinated debt | 539,814 | — | 468,896 | — | 468,896 | ||||||||||||
Other borrowings | 634,956 | 633,815 | 1,095 | — | 634,910 | ||||||||||||
Other liabilities | 409,353 | 160,740 | 231,074 | 17,539 | 409,353 |
December 31, 2022 | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(dollars in thousands) | |||||||||||||||||
FINANCIAL ASSETS | |||||||||||||||||
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 | ||||||||||||
AFS securities | 2,646,767 | 218,485 | 2,428,282 | — | 2,646,767 | ||||||||||||
HTM securities | 1,321,256 | — | 1,125,049 | — | 1,125,049 | ||||||||||||
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 |
Assets | Liabilities | |||||||
Cash and cash equivalents | Demand and savings deposits | |||||||
Accrued interest receivable | Other borrowings | |||||||
Accrued interest payable |
Three months ended March 31 | |||||||||||
2023 | 2022 | ||||||||||
Weighted average shares outstanding (basic) | 166,605 | 160,588 | |||||||||
Impact of common stock equivalents | 1,796 | 1,323 | |||||||||
Weighted average shares outstanding (diluted) | 168,401 | 161,911 | |||||||||
Per share: | |||||||||||
Basic | $ | 0.39 | $ | 0.38 | |||||||
Diluted | 0.39 | 0.38 |
Three months ended March 31 | |||||||||||
2023 | 2022 | ||||||||||
(dollars in thousands) | |||||||||||
Compensation expense | $ | 1,668 | $ | 2,955 | |||||||
Tax benefit | (362) | (603) | |||||||||
Total stock-based compensation, net of tax | $ | 1,306 | $ | 2,352 |
Three months ended March 31 | |||||||||||
2023 | 2022 | ||||||||||
(dollars in thousands) | |||||||||||
Interest cost | $ | 856 | $ | 598 | |||||||
Expected return on plan assets | (877) | (1,098) | |||||||||
Net amortization and deferral | 80 | 163 | |||||||||
Net periodic pension cost | $ | 59 | $ | (337) | |||||||
Three months ended March 31 | |||||||||||
2023 | 2022 | ||||||||||
(dollars in thousands) | |||||||||||
Interest cost | $ | 13 | $ | 8 | |||||||
Net accretion and deferral | (136) | (131) | |||||||||
Net periodic benefit | $ | (123) | $ | (123) |
March 31, 2023 | December 31, 2022 | ||||||||||
(dollars in thousands) | |||||||||||
Commitments to extend credit | $ | 8,902,212 | $ | 8,695,621 | |||||||
Standby letters of credit | 258,922 | 260,829 | |||||||||
Commercial letters of credit | 57,912 | 49,288 |
Three months ended March 31 | |||||||||||
2023 | 2022 | ||||||||||
(dollars in thousands, except per share data) | |||||||||||
Net income | $ | 68,314 | $ | 64,288 | |||||||
Net income available to common shareholders | $ | 65,752 | $ | 61,726 | |||||||
Diluted net income available to common shareholders per share | $ | 0.39 | $ | 0.38 | |||||||
Return on average assets, annualized | 1.03 | % | 1.02 | % | |||||||
Return on average common shareholders' equity | 11.02 | % | 10.03 | % | |||||||
Return on average common shareholders' equity (tangible), annualized(1) | 14.46 | % | 12.88 | % | |||||||
Net interest margin(2) | 3.53 | % | 2.78 | % | |||||||
Efficiency ratio(1) | 58.5 | % | 65.8 | % | |||||||
Non-performing assets to total assets | 0.62 | % | 0.64 | % | |||||||
Net charge-offs (recoveries) to average loans | 0.27 | % | (0.02) | % |
Three months ended March 31 | |||||||||||
2023 | 2022 | ||||||||||
(dollars in thousands, except per share data) | |||||||||||
Return on average common shareholders' equity (tangible) | |||||||||||
Net income available to common shareholders | $ | 65,752 | $ | 61,726 | |||||||
Plus: Intangible amortization | 674 | 176 | |||||||||
Plus: Merger-related expenses | — | 401 | |||||||||
Less: Tax impact of adjustments | (142) | (122) | |||||||||
Operating net income available to common shareholders (numerator) | $ | 66,284 | $ | 62,181 | |||||||
Average shareholders' equity | $ | 2,613,316 | $ | 2,688,834 | |||||||
Less: Average goodwill and intangible assets | (561,744) | (537,976) | |||||||||
Less: Average preferred stock | (192,878) | (192,878) | |||||||||
Average tangible common shareholders' equity (denominator) | $ | 1,858,694 | $ | 1,957,980 | |||||||
Return on average common shareholders' equity (tangible) | 14.46 | % | 12.88 | % | |||||||
Efficiency ratio | |||||||||||
Non-interest expense | $ | 159,616 | $ | 145,978 | |||||||
Less: Amortization of tax credit investments | — | (696) | |||||||||
Less: Merger-related expenses | — | (401) | |||||||||
Less: Intangible amortization | (674) | (176) | |||||||||
Non-interest expense (numerator) | $ | 158,942 | $ | 144,705 | |||||||
Net interest income | $ | 215,587 | $ | 161,310 | |||||||
Tax equivalent adjustment | 4,414 | 3,288 | |||||||||
Plus: Total non-interest income | 51,753 | 55,256 | |||||||||
Less: Investment securities (gains) losses, net | (23) | (19) | |||||||||
Total revenue (denominator) | $ | 271,731 | $ | 219,835 | |||||||
Efficiency ratio | 58.5 | % | 65.8 | % |
Three months ended March 31 | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||||||||||||||||||||
ASSETS | (dollars in thousands) | ||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Net loans (1) | $ | 20,463,096 | $ | 263,065 | 5.21 | % | $ | 18,383,118 | $ | 151,127 | 3.32 | % | |||||||||||||||||||||||
Investment securities (2) | 4,289,643 | 27,522 | 2.60 | 4,226,352 | 24,251 | 2.29 | |||||||||||||||||||||||||||||
Other interest-earning assets | 493,130 | 3,648 | 3.00 | 1,286,723 | 912 | 0.29 | |||||||||||||||||||||||||||||
Total interest-earning assets | 25,245,869 | 294,235 | 4.73 | 23,896,193 | 176,290 | 2.98 | |||||||||||||||||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||||||||||||||
Cash and due from banks | 141,254 | 162,320 | |||||||||||||||||||||||||||||||||
Premises and equipment | 223,025 | 219,932 | |||||||||||||||||||||||||||||||||
Other assets | 1,563,806 | 1,595,039 | |||||||||||||||||||||||||||||||||
Less: ACL - loans (3) | (273,301) | (251,022) | |||||||||||||||||||||||||||||||||
Total Assets | $ | 26,900,653 | $ | 25,622,462 | |||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Demand deposits | $ | 5,326,566 | $ | 8,455 | 0.64 | % | $ | 5,664,987 | $ | 728 | 0.05 | % | |||||||||||||||||||||||
Savings and money market deposits | 6,469,468 | 20,535 | 1.29 | 6,436,548 | 1,021 | 0.06 | |||||||||||||||||||||||||||||
Brokered deposits | 439,670 | 5,173 | 4.77 | 250,350 | 216 | 0.35 | |||||||||||||||||||||||||||||
Time deposits | 1,696,878 | 7,458 | 1.78 | 1,697,063 | 3,640 | 0.87 | |||||||||||||||||||||||||||||
Total interest-bearing deposits | 13,932,582 | 41,621 | 1.21 | 14,048,948 | 5,605 | 0.16 | |||||||||||||||||||||||||||||
Borrowings and other interest-bearing liabilities | 3,058,684 | 32,613 | 4.32 | % | 1,033,815 | 6,087 | 2.39 | ||||||||||||||||||||||||||||
Total interest-bearing liabilities | 16,991,266 | 74,234 | 1.78 | 15,082,763 | 11,692 | 0.31 | |||||||||||||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Demand deposits | 6,641,741 | 7,431,235 | |||||||||||||||||||||||||||||||||
Other liabilities | 654,330 | 419,630 | |||||||||||||||||||||||||||||||||
Total Liabilities | 24,287,337 | 22,933,628 | |||||||||||||||||||||||||||||||||
Total Deposits/Cost of deposits | 20,574,323 | 0.82 | 21,480,183 | 0.11 | |||||||||||||||||||||||||||||||
Total Interest-bearing liabilities and non-interest bearing deposits/Cost of funds | 23,633,007 | 1.27 | 22,513,998 | 0.21 | |||||||||||||||||||||||||||||||
Shareholders’ equity | 2,613,316 | 2,688,834 | |||||||||||||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 26,900,653 | $ | 25,622,462 | |||||||||||||||||||||||||||||||
Net interest income/FTE NIM | 220,001 | 3.53 | % | 164,598 | 2.78 | % | |||||||||||||||||||||||||||||
Tax equivalent adjustment | (4,414) | (3,288) | |||||||||||||||||||||||||||||||||
Net interest income | $ | 215,587 | $ | 161,310 |
2023 vs. 2022 Increase (Decrease) due to change in | |||||||||||||||||
Volume | Yield/Rate | Net | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
FTE Interest income on: | |||||||||||||||||
Net loans (1) | $ | 18,559 | $ | 93,379 | $ | 111,938 | |||||||||||
Investment securities | 326 | 2,945 | 3,271 | ||||||||||||||
Other interest-earning assets | (895) | 3,631 | 2,736 | ||||||||||||||
Total interest income | $ | 17,990 | $ | 99,955 | $ | 117,945 | |||||||||||
Interest expense on: | |||||||||||||||||
Demand deposits | $ | (44) | $ | 7,771 | $ | 7,727 | |||||||||||
Savings and money market deposits | 5 | 19,509 | 19,514 | ||||||||||||||
Brokered deposits | 280 | 4,677 | 4,957 | ||||||||||||||
Time deposits | — | 3,818 | 3,818 | ||||||||||||||
Borrowings and other interest-bearing liabilities | 18,782 | 7,744 | 26,526 | ||||||||||||||
Total interest expense | $ | 19,023 | $ | 43,519 | $ | 62,542 |
Three months ended March 31 | Increase (Decrease) | ||||||||||||||||||||||||||||||||||
2023 | 2022 | in Balance | |||||||||||||||||||||||||||||||||
Balance | Yield | Balance | Yield | $ | % | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Real estate – commercial mortgage | $ | 7,720,975 | 5.55 | % | $ | 7,294,914 | 3.19 | % | $ | 426,061 | 5.8 | % | |||||||||||||||||||||||
Commercial and industrial | 4,565,923 | 5.75 | 4,213,014 | 3.06 | 352,909 | 8.4 | |||||||||||||||||||||||||||||
Real estate – residential mortgage | 4,790,868 | 3.58 | 3,887,428 | 3.30 | 903,440 | 23.2 | |||||||||||||||||||||||||||||
Real estate – home equity | 1,086,032 | 6.37 | 1,106,319 | 3.74 | (20,287) | (1.8) | |||||||||||||||||||||||||||||
Real estate – construction | 1,276,145 | 6.29 | 1,137,649 | 3.05 | 138,496 | 12.2 | |||||||||||||||||||||||||||||
Consumer | 721,248 | 5.38 | 471,129 | 5.15 | 250,119 | 53.1 | |||||||||||||||||||||||||||||
Leases and other loans(1) | 301,905 | 4.09 | 272,665 | 3.79 | 29,240 | 10.7 | |||||||||||||||||||||||||||||
Total loans | $ | 20,463,096 | 5.21 | % | $ | 18,383,118 | 3.32 | % | $ | 2,079,978 | 11.3 | % |
Three months ended March 31 | Increase (Decrease) in Balance | ||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Balance | Rate | Balance | Rate | $ | % | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 6,641,741 | — | % | $ | 7,431,235 | — | % | $ | (789,494) | (10.6) | % | |||||||||||||||||||||||
Interest-bearing demand | 5,326,566 | 0.64 | 5,664,987 | 0.05 | (338,421) | (6.0) | |||||||||||||||||||||||||||||
Savings and money market deposits | 6,469,468 | 1.29 | 6,436,548 | 0.06 | 32,920 | 0.5 | |||||||||||||||||||||||||||||
Total demand deposits and savings and money market deposits | 18,437,775 | 0.64 | 19,532,770 | 0.04 | (1,094,995) | (5.6) | |||||||||||||||||||||||||||||
Brokered deposits | 439,670 | 4.77 | 250,350 | 0.35 | 189,320 | 75.6 | |||||||||||||||||||||||||||||
Time deposits | 1,696,878 | 1.78 | 1,697,063 | 0.87 | (185) | — | |||||||||||||||||||||||||||||
Total deposits | $ | 20,574,323 | 0.82 | % | $ | 21,480,183 | 0.11 | % | $ | (905,860) | (4.2) | % |
Three months ended March 31 | Increase (Decrease) | ||||||||||||||||||||||||||||||||||
2023 | 2022 | in Balance | |||||||||||||||||||||||||||||||||
Balance | Rate | Balance | Rate | $ | % | ||||||||||||||||||||||||||||||
Borrowings and other interest-bearing liabilities: | (dollars in thousands) | ||||||||||||||||||||||||||||||||||
Federal funds purchased | $ | 505,142 | 4.85 | % | $ | — | — | % | $ | 505,142 | N/M | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 1,261,589 | 4.97 | — | — | 1,261,589 | N/M | |||||||||||||||||||||||||||||
Senior debt and subordinated debt | 539,726 | 4.02 | 608,961 | 3.97 | (69,235) | (11.4) | |||||||||||||||||||||||||||||
Other borrowings and other interest bearing liabilities(1) | 752,227 | 3.11 | 424,854 | 0.12 | 327,373 | 77.1 | |||||||||||||||||||||||||||||
Total borrowings and other interest-bearing liabilities | $ | 3,058,684 | 4.32 | % | $ | 1,033,815 | 2.39 | % | $ | 2,024,869 | N/M |
Three months ended March 31 | Increase (Decrease) | ||||||||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Wealth management | $ | 18,062 | $ | 19,428 | $ | (1,366) | (7.0) | % | |||||||||||||||
Commercial banking: | |||||||||||||||||||||||
Merchant and card | 6,834 | 6,097 | 737 | 12.1 | |||||||||||||||||||
Cash management | 5,515 | 5,428 | 87 | 1.6 | |||||||||||||||||||
Capital markets | 2,344 | 1,676 | 668 | 39.9 | |||||||||||||||||||
Other commercial banking | 2,820 | 2,807 | 13 | 0.5 | |||||||||||||||||||
Total commercial banking | 17,513 | 16,008 | 1,505 | 9.4 | |||||||||||||||||||
Consumer banking: | |||||||||||||||||||||||
Card | 6,243 | 5,796 | 447 | 7.7 | |||||||||||||||||||
Overdraft | 2,733 | 3,772 | (1,039) | (27.5) | |||||||||||||||||||
Other consumer banking | 2,241 | 2,106 | 135 | 6.4 | |||||||||||||||||||
Total consumer banking | 11,217 | 11,674 | (457) | (3.9) | |||||||||||||||||||
Mortgage banking: | |||||||||||||||||||||||
Gains on sales of mortgage loans | 656 | 3,026 | (2,370) | (78.3) | |||||||||||||||||||
Mortgage servicing income | 1,314 | 1,550 | (236) | (15.2) | |||||||||||||||||||
Total mortgage banking | 1,970 | 4,576 | (2,606) | (56.9) | |||||||||||||||||||
Other | 2,968 | 3,551 | (583) | (16.4) | |||||||||||||||||||
Non-interest income before investment securities gains | 51,730 | 55,237 | (3,507) | (6.3) | |||||||||||||||||||
Investment securities gains (losses), net | 23 | 19 | 4 | 21.1 | |||||||||||||||||||
Total Non-Interest Income | $ | 51,753 | $ | 55,256 | $ | (3,503) | (6.3) | % |
Three months ended March 31 | Increase (Decrease) | ||||||||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Salaries and employee benefits | $ | 89,283 | $ | 84,464 | $ | 4,819 | 5.7 | % | |||||||||||||||
Data processing and software | 15,796 | 14,315 | 1,481 | 10.3 | |||||||||||||||||||
Net occupancy | 14,438 | 14,522 | (84) | (0.6) | |||||||||||||||||||
Other outside services | 10,126 | 8,167 | 1,959 | 24.0 | |||||||||||||||||||
FDIC insurance | 4,795 | 3,209 | 1,586 | 49.4 | |||||||||||||||||||
State taxes | 3,479 | 3,037 | 442 | 14.6 | |||||||||||||||||||
Equipment | 3,389 | 3,423 | (34) | (1.0) | |||||||||||||||||||
Professional fees | 2,392 | 1,792 | 600 | 33.5 | |||||||||||||||||||
Marketing | 1,886 | 1,320 | 566 | 42.9 | |||||||||||||||||||
Intangible amortization | 674 | 176 | 498 | N/M | |||||||||||||||||||
Merger-related expenses | — | 401 | (401) | N/M | |||||||||||||||||||
Other | 13,358 | 11,152 | 2,206 | 19.8 | |||||||||||||||||||
Total non-interest expense | $ | 159,616 | $ | 145,978 | $ | 13,638 | 9.3 | % |
March 31, 2023 | December 31, 2022 | Increase (Decrease) | |||||||||||||||||||||
$ | % | ||||||||||||||||||||||
Assets | (dollars in thousands) | ||||||||||||||||||||||
Cash and cash equivalents | $ | 566,753 | $ | 681,921 | $ | (115,168) | (16.9) | % | |||||||||||||||
FRB and FHLB Stock | 107,605 | 130,186 | (22,581) | (17.3) | |||||||||||||||||||
Loans held for sale | 6,507 | 7,264 | (757) | (10.4) | |||||||||||||||||||
Investment securities | 3,950,101 | 3,968,023 | (17,922) | (0.5) | |||||||||||||||||||
Net loans, less ACL - loans | 20,391,493 | 20,010,181 | 381,312 | 1.9 | |||||||||||||||||||
Net premises and equipment | 216,059 | 225,141 | (9,082) | (4.0) | |||||||||||||||||||
Goodwill and intangibles | 563,502 | 560,824 | 2,678 | 0.5 | |||||||||||||||||||
Other assets | 1,310,156 | 1,348,162 | (38,006) | (2.8) | |||||||||||||||||||
Total Assets | $ | 27,112,176 | $ | 26,931,702 | $ | 180,474 | 0.7 | % | |||||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||||||
Deposits | $ | 21,316,584 | $ | 20,649,538 | $ | 667,046 | 3.2 | % | |||||||||||||||
Borrowings | 2,446,770 | 2,871,207 | (424,437) | (14.8) | |||||||||||||||||||
Other liabilities | 729,824 | 831,200 | (101,376) | (12.2) | |||||||||||||||||||
Total Liabilities | 24,493,178 | 24,351,945 | 141,233 | 0.6 | |||||||||||||||||||
Total Shareholders' Equity | 2,618,998 | 2,579,757 | 39,241 | 1.5 | |||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 27,112,176 | $ | 26,931,702 | $ | 180,474 | 0.7 | % |
March 31, 2023 | December 31, 2022 | Increase (Decrease) | |||||||||||||||||||||
$ | % | ||||||||||||||||||||||
Available for Sale | (dollars in thousands) | ||||||||||||||||||||||
U.S. Government securities | $ | 220,053 | $ | 218,485 | $ | 1,568 | 0.7 | % | |||||||||||||||
U.S. Government-sponsored agency securities | 1,017 | 1,008 | 9 | 0.9 | |||||||||||||||||||
State and municipal securities | 1,067,598 | 1,105,712 | (38,114) | (3.4) | |||||||||||||||||||
Corporate debt securities | 439,034 | 422,309 | 16,725 | 4.0 | |||||||||||||||||||
Collateralized mortgage obligations | 130,450 | 134,033 | (3,583) | (2.7) | |||||||||||||||||||
Residential mortgage-backed securities | 212,574 | 212,698 | (124) | (0.1) | |||||||||||||||||||
Commercial mortgage-backed securities | 571,663 | 552,522 | 19,141 | 3.5 | |||||||||||||||||||
Total available for sale securities | $ | 2,642,389 | $ | 2,646,767 | $ | (4,378) | (0.2) | % | |||||||||||||||
Held to Maturity | |||||||||||||||||||||||
Residential mortgage-backed securities | $ | 444,431 | $ | 457,325 | $ | (12,894) | (2.8) | % | |||||||||||||||
Commercial mortgage-backed securities | 863,281 | 863,931 | (650) | (0.1) | |||||||||||||||||||
Total held to maturity securities | $ | 1,307,712 | $ | 1,321,256 | $ | (13,544) | (1.0) | % | |||||||||||||||
Total Investment Securities | $ | 3,950,101 | $ | 3,968,023 | $ | (17,922) | (0.5) | % |
March 31, 2023 | December 31, 2022 | Increase (Decrease) | |||||||||||||||||||||
$ | % | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Real estate – commercial mortgage | $ | 7,746,920 | $ | 7,693,835 | $ | 53,085 | 0.7 | % | |||||||||||||||
Commercial and industrial | 4,600,696 | 4,477,537 | 123,159 | 2.8 | |||||||||||||||||||
Real estate – residential mortgage | 4,880,919 | 4,737,279 | 143,640 | 3.0 | |||||||||||||||||||
Real estate – home equity | 1,074,712 | 1,102,838 | (28,126) | (2.6) | |||||||||||||||||||
Real estate – construction | 1,326,754 | 1,269,925 | 56,829 | 4.5 | |||||||||||||||||||
Consumer | 730,775 | 699,179 | 31,596 | 4.5 | |||||||||||||||||||
Leases and other loans | 340,595 | 328,331 | 12,264 | 3.7 | |||||||||||||||||||
Gross loans | 20,701,371 | 20,308,924 | 392,447 | 1.9 | |||||||||||||||||||
Unearned income | (31,183) | (29,377) | (1,806) | (6.1) | |||||||||||||||||||
Net loans | $ | 20,670,188 | $ | 20,279,547 | $ | 390,641 | 1.9 | % |
March 31, 2023 | December 31, 2022 | ||||||||||
Real estate(1) | 46.3 | % | 43.9 | % | |||||||
Health care | 6.6 | 6.5 | |||||||||
Manufacturing | 6.2 | 6.8 | |||||||||
Agriculture | 5.3 | 5.4 | |||||||||
Other services | 4.6 | 4.7 | |||||||||
Construction(2) | 4.3 | 4.7 | |||||||||
Hospitality and food services | 3.5 | 3.6 | |||||||||
Wholesale trade | 3.2 | 3.1 | |||||||||
Retail | 3.1 | 3.1 | |||||||||
Educational services | 2.8 | 2.8 | |||||||||
Professional, scientific and technical services | 2.2 | 1.8 | |||||||||
Arts, entertainment and recreation | 2.1 | 2.0 | |||||||||
Transportation and warehousing | 1.3 | 1.3 | |||||||||
Public administration | 1.1 | 1.2 | |||||||||
Administrative and Support | 1.0 | 1.1 | |||||||||
Other | 6.4 | 8.0 | |||||||||
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 | Leases and other loans | Total | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | 27,116 | $ | 70,161 | $ | 1,368 | $ | 26,294 | $ | 6,197 | $ | 13,307 | $ | 144,443 | |||||||||||||||||||||||||||
Additions | 7,715 | 7,106 | — | 76 | 2,553 | — | 17,450 | ||||||||||||||||||||||||||||||||||
Payments | (2,340) | (5,724) | (90) | (594) | (485) | (333) | (9,566) | ||||||||||||||||||||||||||||||||||
Charge-offs | (612) | (13,362) | — | — | (2,206) | (723) | (16,903) | ||||||||||||||||||||||||||||||||||
Transfers to accrual status | — | 228 | — | (228) | — | — | — | ||||||||||||||||||||||||||||||||||
Transfers to OREO | — | — | — | (1,121) | — | — | (1,121) | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | 31,879 | $ | 58,409 | $ | 1,278 | $ | 24,427 | $ | 6,059 | $ | 12,251 | $ | 134,303 | |||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
(dollars in thousands) | |||||||||||
Non-accrual loans | $ | 134,303 | $ | 144,443 | |||||||
Loans 90 days or more past due and still accruing(1) | 30,336 | 27,463 | |||||||||
Total non-performing loans | 164,639 | 171,906 | |||||||||
OREO (2) | 3,304 | 5,790 | |||||||||
Total non-performing assets | $ | 167,943 | $ | 177,696 | |||||||
Non-accrual loans to total loans | 0.65 | % | 0.71 | % | |||||||
Non-performing loans to total loans | 0.80 | % | 0.85 | % | |||||||
Non-performing assets to total assets | 0.62 | % | 0.66 | % | |||||||
ACL - loans to non-performing loans | 169 | % | 157 | % |
Special Mention (1) | Increase (Decrease) | Substandard or Lower (2) | Increase (Decrease) | Total Criticized and Classified Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | $ | % | March 31, 2023 | December 31, 2022 | $ | % | March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 306,252 | $ | 306,381 | $ | (129) | —% | $ | 186,893 | $ | 184,014 | $ | 2,879 | 1.6 | % | $ | 493,145 | $ | 490,395 | ||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 145,455 | 133,943 | 11,512 | 8.6 | 112,086 | 95,546 | 16,540 | 17.3 | 257,541 | 229,489 | |||||||||||||||||||||||||||||||||||||||||||||||||
Real estate - construction (3) | 30,501 | 21,603 | 8,898 | 41.2 | 11,054 | 10,601 | 453 | 4.3 | 41,555 | 32,204 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 482,208 | $ | 461,927 | $ | 20,281 | 4.4% | $ | 310,033 | $ | 290,161 | $ | 19,872 | 6.8% | $ | 792,241 | $ | 752,088 | |||||||||||||||||||||||||||||||||||||||||
% of total risk rated loans | 3.6 | % | 3.5 | % | 2.3 | % | 2.2 | % | 5.9 | % | 5.7 | % |
March 31, 2023 | December 31, 2022 | ||||||||||
(dollars in thousands) | |||||||||||
ACL - loans | $ | 278,695 | $ | 269,366 | |||||||
ACL - OBS credit exposure (1) | $ | 17,539 | $ | 16,328 |
Three months ended March 31 | |||||||||||
2023 | 2022 | ||||||||||
(dollars in thousands) | |||||||||||
Average balance of net loans | $ | 20,463,096 | $ | 18,383,118 | |||||||
Balance of ACL at beginning of period | $ | 269,366 | $ | 249,001 | |||||||
Loans charged off: | |||||||||||
Real estate – commercial mortgage | (13,362) | (152) | |||||||||
Commercial and industrial | (612) | (227) | |||||||||
Real estate – residential mortgage | — | — | |||||||||
Consumer and real estate - home equity | (2,206) | (1,052) | |||||||||
Real estate – construction | — | — | |||||||||
Leases and other loans | (723) | (469) | |||||||||
Total loans charged off | (16,903) | (1,900) | |||||||||
Recoveries of loans previously charged off: | |||||||||||
Real estate – commercial mortgage | 786 | 112 | |||||||||
Commercial and industrial | 1,086 | 1,980 | |||||||||
Real estate – residential mortgage | 48 | 222 | |||||||||
Consumer and real estate - home equity | 661 | 454 | |||||||||
Real estate – construction | 202 | 32 | |||||||||
Leases and other loans | 116 | 154 | |||||||||
Total recoveries | 2,899 | 2,954 | |||||||||
Net loans charged off/(recoveries) | (14,004) | 1,054 | |||||||||
Provision for credit losses | 23,333 | (6,350) | |||||||||
Balance of ACL at end of period | $ | 278,695 | $ | 243,705 | |||||||
Provision for OBS credit exposures | $ | 1,211 | $ | (600) | |||||||
Reserve for OBS credit exposures(1) | $ | 17,539 | $ | 13,933 | |||||||
Net charge-offs to average loans (annualized) | 0.27 | % | (0.02) | % |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
ACL - loans | % to Total Net Loans (1) | ACL - loans | % to Total Net Loans (1) | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Real estate - commercial mortgage | $ | 66,256 | 37.5 | % | $ | 69,456 | 37.9 | % | |||||||||||||||
Commercial and industrial | 77,126 | 22.3 | 70,116 | 22.0 | |||||||||||||||||||
Real estate - residential mortgage | 86,209 | 23.6 | 83,250 | 23.3 | |||||||||||||||||||
Consumer, home equity and leases and other loans | 37,458 | 10.2 | 35,801 | 10.5 | |||||||||||||||||||
Real estate - construction | 11,646 | 6.4 | 10,743 | 6.3 | |||||||||||||||||||
Total ACL - loans | $ | 278,695 | 100.0 | % | $ | 269,366 | 100.0 | % |
March 31, 2023 | December 31, 2022 | Increase (Decrease) | |||||||||||||||||||||
$ | % | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 6,403,484 | $ | 7,006,388 | $ | (602,904) | (8.6) | % | |||||||||||||||
Interest-bearing demand | 5,478,237 | 5,410,903 | 67,334 | 1.2 | |||||||||||||||||||
Savings and money market deposits | 6,579,806 | 6,434,621 | 145,185 | 2.3 | |||||||||||||||||||
Total demand and savings | 18,461,527 | 18,851,912 | (390,385) | (2.1) | |||||||||||||||||||
Brokered deposits | 960,919 | 208,416 | 752,503 | N/M | |||||||||||||||||||
Time deposits | 1,894,138 | 1,589,210 | 304,928 | 19.2 | |||||||||||||||||||
Total deposits | $ | 21,316,584 | $ | 20,649,538 | $ | 667,046 | 3.2 | % |
March 31, 2023 | December 31, 2022 | Increase (Decrease) | |||||||||||||||||||||
$ | % | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Federal funds purchased | $ | 525,000 | $ | 191,000 | $ | 334,000 | N/M | ||||||||||||||||
Federal Home Loan Bank advances | 747,000 | 1,250,000 | (503,000) | (40.2) | |||||||||||||||||||
Senior debt and subordinated debt | 539,814 | 539,634 | 180 | — | |||||||||||||||||||
Other borrowings(1) | 634,956 | 890,573 | (255,617) | (28.7) | |||||||||||||||||||
Total borrowings | $ | 2,446,770 | $ | 2,871,207 | $ | (424,437) | (14.8) | % | |||||||||||||||
March 31, 2023 | December 31, 2022 | Regulatory Minimum for Capital Adequacy | Fully Phased-in, with Capital Conservation Buffers | ||||||||||||||||||||
Total Risk-Based Capital (to Risk-Weighted Assets) | 13.4 | % | 13.6 | % | 8.0 | % | 10.5 | % | |||||||||||||||
Tier I Risk-Based Capital (to Risk-Weighted Assets) | 10.6 | % | 10.9 | % | 6.0 | % | 8.5 | % | |||||||||||||||
Common Equity Tier I (to Risk-Weighted Assets) | 9.8 | % | 10.0 | % | 4.5 | % | 7.0 | % | |||||||||||||||
Tier I Leverage Capital (to Average Assets) | 9.2 | % | 9.5 | % | 4.0 | % | 4.0 | % |
Rate Shock(1) | Annual change in net interest income | % change in net interest income | |||||||||
+400 bp | + $94.3 million | +10.4% | |||||||||
+300 bp | + $73.8 million | +8.1% | |||||||||
+200 bp | + $54.0 million | +6.0% | |||||||||
+100 bp | + $32.5 million | +3.6% | |||||||||
–100 bp | – $42.8 million | – 4.7% | |||||||||
–200 bp | – $85.0 million | – 9.4% | |||||||||
–300 bp | – $126.3 million | – 13.9% | |||||||||
–400 bp | – $172.1 million | – 19.0% |
(c) Period | Total Number of Shares Purchased | Average Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
January 1, 2023 to January 31, 2023 | 652,821 | $ | 16.190 | 652,821 | $ | 89,432,435 | ||||||||||||||||||||
February 1, 2023 to February 28, 2023 | 969,203 | 17.390 | 969,203 | 72,582,765 | ||||||||||||||||||||||
March 1, 2023 to March 31, 2023 | 789,529 | 16.510 | 789,529 | 59,551,298 |
3.1 | |||||||||||
3.2 | |||||||||||
3.3 | |||||||||||
4.1 | |||||||||||
4.2 | |||||||||||
4.3 | |||||||||||
4.4 | |||||||||||
10.1 | |||||||||||
10.2 | |||||||||||
10.3 | |||||||||||
31.1 | |||||||||||
31.2 | |||||||||||
32.1 | |||||||||||
32.2 | |||||||||||
101 | Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Unaudited Consolidated Balance Sheets, (ii) Unaudited Consolidated Statements of Income, (iii) Unaudited Consolidated Statements of Comprehensive Income, (iv) Unaudited Consolidated Statements of Shareholders' Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements. | ||||||||||
104 | Cover page interactive data file (formatted as inline XBRL and contained in Exhibit 101) | ||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||
Date: | May 9, 2023 | /s/ Curtis J. Myers | ||||||||||||
Curtis J. Myers | ||||||||||||||
Chairman and Chief Executive Officer | ||||||||||||||
Date: | May 9, 2023 | /s/ Mark R. McCollom | ||||||||||||
Mark R. McCollom | ||||||||||||||
Senior Executive Vice President and Chief Financial Officer | ||||||||||||||
Granted To: | [NAME] | ||||
Date of Grant: | [GRANT DATE] | ||||
Number of Time-Vested RSUs Granted: | [TOTAL AWARD] | ||||
Restricted Period: | Unless your Award is forfeited before the end of the Restricted Period, the Restricted Period will end three years after the Date of Grant. | ||||
Death, Disability or Retirement: | Your Award will vest and Shares will be delivered to you upon your death, Disability or Retirement; provided, however, if an Award becomes payable upon Retirement (and such Retirement constitutes a separation of service under Section 409A), such Award will not be paid until the date that is six months following your Retirement date. | ||||
Change of Control: | In the event of a termination of Continuous Service without Cause during the 12-month period following a Change of Control, the Restricted Period will expire with respect to 100% of your RSUs as of the date of your termination. | ||||
Right to Dividend Equivalents: | Each RSU may be credited with Dividend Equivalents. | ||||
Clawback: | Your Award is subject to Fulton’s Compensation Recovery Clawback Policy, as amended or restated. | ||||
Forfeiture: | Your Award is subject to forfeiture until the expiration of the Restricted Period, including all Dividend Equivalents, pursuant to the terms of the 2022 Plan. | ||||
Continuous Service | Except as otherwise set forth in the 2022 Plan, Continuous Service is required for your Award to vest. | ||||
Net Settlement of Award: | Upon the lapse of the forfeiture restrictions with respect to my Award, I authorize the withholding of Shares from my Award for the payment of some or all of my federal, state or local taxes. | ||||
Timing of Award Payment: | Payment will be made no earlier than the end of the Restricted Period. |
Participant: | [NAME] | ||||
Date of Grant: | [GRANT DATE] | ||||
Aggregate Total PRSUs for TSR Component Performance: | [TOTAL AWARD] (at target for TSR Component) | ||||
Range of Potential PRSUs as a Percentage of Target: | 0.00% to 150.00% of target for TSR Component (determined on the Vest Date) | ||||
Retirement: | Upon your Retirement prior to the end of a Performance Period, the Committee may (i) determine the extent to which Performance Goals with respect to such Performance Period have been met during or with respect to the period of your employment and (ii) pay to Participant a partial or full Award for future Performance Period(s) based on the Committee’s determination of the degree of attainment of Performance Goals. For purposes of the 2022 Plan, Retirement is not a termination of Continuous Service. | ||||
Death or Disability: | Upon your death or Disability, your Award will be accelerated and the Committee will determine the extent to which the Performance Goals have been met. | ||||
Change in Control: | In the event of a Change in Control, the Committee will determine the extent to which Performance Goals with respect to such Performance Period have been met. | ||||
Forfeiture: | If your Continuous Service is terminated for any reason, your Award will not vest and will be forfeited in accordance with the 2022 Plan. | ||||
Clawback: | Your Award is subject to Fulton’s Compensation Recovery Clawback Policy, as amended or restated. | ||||
Net Settlement of Award: | Upon the lapse of the forfeiture restrictions with respect to my Award, I authorize the withholding of Shares from my Award for the payment of some or all of my federal, state and local taxes. | ||||
Performance Period: | [DATE] to [DATE] |
Performance Goal: | Achievement of a 3-year TSR growth measured on a percentile basis relative to the 2023 peer group. | ||||
Shares at Target: | [TOTAL AWARD] | ||||
Determination of PRSUs earned: | The Committee will determine no later than [DATE] the extent to which the Performance Goals have been achieved and the level of achievement. | ||||
Vest Date: | The later of [DATE] or the date the Committee certifies as to the achievement of the Performance Goal. | ||||
Dividend Equivalents: | Each PRSU may be credited with Dividend Equivalents. |
Participant: | [NAME] | ||||
Date of Grant: | [GRANT DATE] | ||||
Aggregate Total PRSUs for Profit Trigger Component Performance: | [TOTAL AWARD] (at target for Profit Component) | ||||
Range of Potential PRSUs as a Percentage of Target: | 0.00% to 100% of target for Profit Trigger Component (determined on the Vest Date) | ||||
Retirement: | Upon your Retirement prior to the end of a Performance Period, the Committee may (i) determine the extent to which Performance Goals with respect to such Performance Period have been met during or with respect to the period of your employment and (ii) pay to Participant a partial or full Award for future Performance Period(s) based on the Committee’s determination of the degree of attainment of Performance Goals. For purposes of the 2022 Plan, Retirement is not a termination of Continuous Service. | ||||
Death or Disability: | Upon your death or Disability, your Award will be accelerated and the Committee will determine the extent to which the Performance Goals have been met. | ||||
Change in Control: | In the event of a Change in Control, the Committee will determine the extent to which Performance Goals with respect to such Performance Period have been met. | ||||
Forfeiture: | If your Continuous Service is terminated for any reason, your Award will not vest and will be forfeited in accordance with the 2022 Plan. | ||||
Clawback: | Your Award is subject to Fulton’s Compensation Recovery Clawback Policy, as amended or restated. | ||||
Net Settlement of Award: | Upon the lapse of the forfeiture restrictions with respect to my Award, I authorize the withholding of Shares from my Award for the payment of some or all of my federal, state and local taxes. | ||||
Performance Period: | [DATE] to [DATE] |
Performance Goal: | Achievement of positive net income sufficient to cover all dividends declared during the last four full calendar quarters prior to the Date of Grant. | ||||
Shares at Target: | [TOTAL AWARD] | ||||
Determination of PRSUs earned: | The Committee will determine no later than [DATE] the extent to which the Performance Goals have been achieved and the level of achievement. | ||||
Vest Date: | The later of [DATE] or the date the Committee certifies as to the achievement of the Performance Goal. | ||||
Dividend Equivalents: | Each PRSU may be credited with Dividend Equivalents. |
Date: | May 9, 2023 | |||||||
/s/ Curtis J. Myers | ||||||||
Curtis J. Myers | ||||||||
Chairman and Chief Executive Officer |
Date: | May 9, 2023 | |||||||
/s/ Mark R. McCollom | ||||||||
Mark R. McCollom | ||||||||
Senior Executive Vice President and Chief Financial Officer |
Date: | May 9, 2023 | |||||||
/s/ Curtis J. Myers | ||||||||
Curtis J. Myers | ||||||||
Chairman and Chief Executive Officer |
May 9, 2023 | |||||
/s/ Mark R. McCollom | |||||
Mark R. McCollom | |||||
Senior Executive Vice President and Chief Financial Officer | |||||