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[X]
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended June 30, 2018
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or
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[ ]
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Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from _________ to __________.
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Delaware
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36-3161078
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(State or other jurisdiction of incorporation or organization)
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(IRS Employer Identification No.)
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8750 West Bryn Mawr Avenue, Suite 1300
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Chicago, Illinois 60631-3655
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(Address of principal executive offices) (zip code)
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Registrant's telephone number, including area code:
(708) 831-7563
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Large accelerated filer [X]
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Accelerated filer [ ]
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Non-accelerated filer [ ]
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Smaller reporting company [ ]
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(Do not check if a smaller reporting company)
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Emerging growth company [ ]
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Page
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Part I.
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FINANCIAL INFORMATION
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Item 1.
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Financial Statements (Unaudited)
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Item 2.
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Item 3.
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Item 4.
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Part II.
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Item 1.
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Item 1A.
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Item 2.
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Item 6.
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June 30,
2018 |
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December 31,
2017 |
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Assets
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(Unaudited)
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Cash and due from banks
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$
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181,482
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$
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192,800
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Interest-bearing deposits in other banks
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192,785
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153,770
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Trading securities, at fair value
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—
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20,447
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Equity securities, at fair value
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28,441
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—
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Securities available-for-sale, at fair value
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2,142,865
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1,884,209
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Securities held-to-maturity, at amortized cost
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13,042
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13,760
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Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("FRB") stock, at cost
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82,778
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69,708
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Loans
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10,891,565
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10,437,812
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Allowance for loan losses
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(96,691
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)
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(95,729
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)
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Net loans
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10,794,874
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10,342,083
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Other real estate owned ("OREO")
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12,892
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20,851
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Premises, furniture, and equipment, net
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127,024
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123,316
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Investment in bank-owned life insurance ("BOLI")
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282,664
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279,900
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Goodwill and other intangible assets
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753,020
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754,757
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Accrued interest receivable and other assets
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206,209
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221,451
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Total assets
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$
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14,818,076
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$
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14,077,052
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Liabilities
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Noninterest-bearing deposits
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$
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3,667,847
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$
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3,576,190
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Interest-bearing deposits
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7,824,416
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7,477,135
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Total deposits
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11,492,263
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11,053,325
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Borrowed funds
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981,044
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714,884
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Senior and subordinated debt
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195,453
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195,170
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Accrued interest payable and other liabilities
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265,753
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248,799
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Total liabilities
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12,934,513
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12,212,178
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Stockholders' Equity
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Common stock
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1,124
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1,123
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Additional paid-in capital
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1,025,703
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1,031,870
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Retained earnings
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1,122,107
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1,074,990
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Accumulated other comprehensive loss, net of tax
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(64,400
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(33,036
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)
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Treasury stock, at cost
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(200,971
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(210,073
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Total stockholders' equity
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1,883,563
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1,864,874
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Total liabilities and stockholders' equity
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$
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14,818,076
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$
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14,077,052
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June 30, 2018
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December 31, 2017
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(Unaudited)
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Preferred
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Common
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Preferred
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Common
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Shares
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Shares
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Shares
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Shares
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Par value per share
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$
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—
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$
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0.01
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$
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—
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$
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0.01
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Shares authorized
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1,000
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250,000
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1,000
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250,000
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Shares issued
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—
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112,356
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—
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112,351
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Shares outstanding
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—
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103,059
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—
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102,717
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Treasury shares
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—
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9,297
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—
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9,634
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Quarters Ended
June 30, |
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Six Months Ended
June 30, |
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2018
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2017
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2018
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2017
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Interest Income
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Loans
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$
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127,737
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$
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114,820
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$
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246,423
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$
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227,185
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Investment securities
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13,010
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10,527
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24,766
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21,011
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Other short-term investments
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1,341
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1,169
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2,244
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2,019
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Total interest income
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142,088
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126,516
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273,433
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250,215
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Interest Expense
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Deposits
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8,032
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3,729
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14,211
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6,938
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Borrowed funds
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3,513
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2,099
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6,992
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4,293
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Senior and subordinated debt
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3,140
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3,105
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6,264
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6,204
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Total interest expense
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14,685
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8,933
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27,467
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17,435
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Net interest income
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127,403
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117,583
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245,966
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232,780
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Provision for loan losses
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11,614
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8,239
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26,795
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13,157
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Net interest income after provision for loan losses
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115,789
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109,344
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219,171
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219,623
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Noninterest Income
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Service charges on deposit accounts
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12,058
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12,153
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23,710
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23,518
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Wealth management fees
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10,981
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10,525
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21,939
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20,185
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Card-based fees, net
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4,394
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8,832
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8,327
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16,948
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Capital market products income
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2,819
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2,217
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4,377
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3,593
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Mortgage banking income
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1,736
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1,645
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4,133
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3,533
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Other service charges, commissions, and fees
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2,838
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5,856
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5,386
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11,298
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Net securities gains
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—
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284
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—
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284
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Other income
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2,121
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3,433
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4,592
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5,537
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Total noninterest income
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36,947
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44,945
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72,464
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84,896
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Noninterest Expense
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Salaries and employee benefits
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57,932
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54,575
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114,719
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110,347
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Net occupancy and equipment expense
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13,651
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12,485
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27,424
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24,810
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Professional services
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8,298
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|
|
9,112
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15,878
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|
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17,575
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Technology and related costs
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4,837
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4,485
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|
9,608
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|
|
8,918
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Net OREO expense
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(256
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)
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|
1,631
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|
812
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3,331
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Other expenses
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|
13,939
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|
|
16,289
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|
|
25,542
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|
|
31,673
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Delivering Excellence implementation costs
|
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15,015
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|
|
—
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15,015
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|
|
—
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|
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Acquisition and integration related expenses
|
|
—
|
|
|
1,174
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|
|
—
|
|
|
19,739
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|
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Total noninterest expense
|
|
113,416
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|
|
99,751
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|
|
208,998
|
|
|
216,393
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Income before income tax expense
|
|
39,320
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|
|
54,538
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|
|
82,637
|
|
|
88,126
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|
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Income tax expense
|
|
9,720
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|
|
19,588
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|
|
19,527
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|
|
30,321
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Net income
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|
$
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29,600
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$
|
34,950
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$
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63,110
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$
|
57,805
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Per Common Share Data
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Basic earnings per common share
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$
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0.29
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$
|
0.34
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$
|
0.61
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|
|
$
|
0.57
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Diluted earnings per common share
|
|
$
|
0.29
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|
|
$
|
0.34
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|
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$
|
0.61
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|
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$
|
0.57
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Dividends declared per common share
|
|
$
|
0.11
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|
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$
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0.10
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$
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0.22
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|
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$
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0.19
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|
Weighted-average common shares outstanding
|
|
102,159
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|
|
101,743
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|
|
102,041
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|
|
101,081
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Weighted-average diluted common shares outstanding
|
|
102,159
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|
|
101,763
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|
|
102,049
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|
|
101,101
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|
|
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|
Quarters Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
|
$
|
29,600
|
|
|
$
|
34,950
|
|
|
$
|
63,110
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|
|
$
|
57,805
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|
Securities Available-for-Sale
|
|
|
|
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|
||||||||
Unrealized holding (losses) gains:
|
|
|
|
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|
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||||||||
Before tax
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|
(8,980
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)
|
|
7,352
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|
|
(34,133
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)
|
|
10,650
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|
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Tax effect
|
|
2,535
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|
|
(2,941
|
)
|
|
9,507
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|
|
(4,262
|
)
|
||||
Net of tax
|
|
(6,445
|
)
|
|
4,411
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|
|
(24,626
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)
|
|
6,388
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|
||||
Reclassification of net gains included in net income:
|
|
|
|
|
|
|
||||||||||
Before tax
|
|
—
|
|
|
284
|
|
|
—
|
|
|
284
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|
||||
Tax effect
|
|
—
|
|
|
(114
|
)
|
|
—
|
|
|
(114
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)
|
||||
Net of tax
|
|
—
|
|
|
170
|
|
|
—
|
|
|
170
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|
||||
Net unrealized holding (losses) gains
|
|
(6,445
|
)
|
|
4,241
|
|
|
(24,626
|
)
|
|
6,218
|
|
||||
Derivative Instruments
|
|
|
|
|
|
|
|
|
||||||||
Unrealized holding losses:
|
|
|
|
|
|
|
|
|
||||||||
Before tax
|
|
(590
|
)
|
|
(905
|
)
|
|
(68
|
)
|
|
(3,125
|
)
|
||||
Tax effect
|
|
166
|
|
|
361
|
|
|
19
|
|
|
1,250
|
|
||||
Net of tax
|
|
(424
|
)
|
|
(544
|
)
|
|
(49
|
)
|
|
(1,875
|
)
|
||||
Total other comprehensive (loss) income
|
|
(6,869
|
)
|
|
3,697
|
|
|
(24,675
|
)
|
|
4,343
|
|
||||
Total comprehensive income
|
|
$
|
22,731
|
|
|
$
|
38,647
|
|
|
$
|
38,435
|
|
|
$
|
62,148
|
|
|
|
Accumulated
Unrealized
Loss on
Securities
Available-
for-Sale
|
|
Accumulated Unrealized
Loss on Derivative Instruments
|
|
Unrecognized
Net Pension
Costs
|
|
Total
Accumulated
Other
Comprehensive
Loss
|
||||||||
Balance at December 31, 2016
|
|
$
|
(22,645
|
)
|
|
$
|
(1,176
|
)
|
|
$
|
(17,089
|
)
|
|
$
|
(40,910
|
)
|
Other comprehensive income
|
|
6,218
|
|
|
(1,875
|
)
|
|
—
|
|
|
4,343
|
|
||||
Balance at June 30, 2017
|
|
$
|
(16,427
|
)
|
|
$
|
(3,051
|
)
|
|
$
|
(17,089
|
)
|
|
$
|
(36,567
|
)
|
Balance at December 31, 2017
|
|
$
|
(13,976
|
)
|
|
$
|
(3,763
|
)
|
|
$
|
(15,297
|
)
|
|
$
|
(33,036
|
)
|
Adjustment to apply recent accounting pronouncements
(1)
|
|
(2,864
|
)
|
|
(784
|
)
|
|
(3,041
|
)
|
|
(6,689
|
)
|
||||
Other comprehensive loss
|
|
(24,626
|
)
|
|
(49
|
)
|
|
—
|
|
|
(24,675
|
)
|
||||
Balance at June 30, 2018
|
|
$
|
(41,466
|
)
|
|
$
|
(4,596
|
)
|
|
$
|
(18,338
|
)
|
|
$
|
(64,400
|
)
|
(1)
|
As a result of accounting guidance adopted in the first quarter of 2018, certain reclassifications were made from accumulated other comprehensive loss to retained earnings as of January 1, 2018. For further discussion of this guidance, see Note
2
, "
Recent Accounting Pronouncements
."
|
|
|
|
Common
Shares
Outstanding
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Treasury
Stock
|
|
Total
|
|||||||||||||
Balance at December 31, 2016
|
|
81,325
|
|
|
$
|
913
|
|
|
$
|
498,937
|
|
|
$
|
1,016,674
|
|
|
$
|
(40,910
|
)
|
|
$
|
(218,534
|
)
|
|
$
|
1,257,080
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,805
|
|
|
—
|
|
|
—
|
|
|
57,805
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,343
|
|
|
—
|
|
|
4,343
|
|
||||||
Common dividends declared
($0.19 per common share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,407
|
)
|
|
—
|
|
|
—
|
|
|
(18,407
|
)
|
||||||
Acquisitions, net of issuance costs
|
|
21,078
|
|
|
210
|
|
|
533,322
|
|
|
—
|
|
|
—
|
|
|
558
|
|
|
534,090
|
|
||||||
Common stock issued
|
|
5
|
|
|
—
|
|
|
110
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
110
|
|
||||||
Restricted stock activity
|
|
340
|
|
|
—
|
|
|
(12,588
|
)
|
|
—
|
|
|
—
|
|
|
8,748
|
|
|
(3,840
|
)
|
||||||
Treasury stock issued to benefit plans
|
|
(7
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(164
|
)
|
|
(165
|
)
|
||||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
5,827
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,827
|
|
||||||
Balance at June 30, 2017
|
|
102,741
|
|
|
$
|
1,123
|
|
|
$
|
1,025,607
|
|
|
$
|
1,056,072
|
|
|
$
|
(36,567
|
)
|
|
$
|
(209,392
|
)
|
|
$
|
1,836,843
|
|
Balance at December 31, 2017
|
|
102,717
|
|
|
$
|
1,123
|
|
|
$
|
1,031,870
|
|
|
$
|
1,074,990
|
|
|
$
|
(33,036
|
)
|
|
$
|
(210,073
|
)
|
|
$
|
1,864,874
|
|
Adjustment to apply recent accounting
pronouncements
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,689
|
|
|
(6,689
|
)
|
|
—
|
|
|
—
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63,110
|
|
|
—
|
|
|
—
|
|
|
63,110
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,675
|
)
|
|
—
|
|
|
(24,675
|
)
|
||||||
Common dividends declared
($0.22 per common share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,682
|
)
|
|
—
|
|
|
—
|
|
|
(22,682
|
)
|
||||||
Common stock issued
|
|
5
|
|
|
1
|
|
|
161
|
|
|
—
|
|
|
—
|
|
|
667
|
|
|
829
|
|
||||||
Restricted stock activity
|
|
339
|
|
|
—
|
|
|
(12,558
|
)
|
|
—
|
|
|
—
|
|
|
8,511
|
|
|
(4,047
|
)
|
||||||
Treasury stock issued to benefit plans
|
|
(2
|
)
|
|
—
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
(76
|
)
|
|
(42
|
)
|
||||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
6,196
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,196
|
|
||||||
Balance at June 30, 2018
|
|
103,059
|
|
|
$
|
1,124
|
|
|
$
|
1,025,703
|
|
|
$
|
1,122,107
|
|
|
$
|
(64,400
|
)
|
|
$
|
(200,971
|
)
|
|
$
|
1,883,563
|
|
(1)
|
As a result of accounting guidance adopted in the first quarter of 2018, certain reclassifications were made from accumulated other comprehensive loss to retained earnings as of January 1, 2018. For further discussion of this guidance, see Note
2
, "
Recent Accounting Pronouncements
."
|
|
|
|
Six Months Ended
June 30, |
||||||
|
|
2018
|
|
2017
|
||||
Operating Activities
|
|
|
|
|
||||
Net income
|
|
$
|
63,110
|
|
|
$
|
57,805
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Provision for loan losses
|
|
26,795
|
|
|
13,157
|
|
||
Depreciation of premises, furniture, and equipment
|
|
7,584
|
|
|
6,993
|
|
||
Net amortization of premium on securities
|
|
7,738
|
|
|
8,327
|
|
||
Net securities gains
|
|
—
|
|
|
(284
|
)
|
||
Gains on sales of 1-4 family mortgages and corporate loans held-for-sale
|
|
(3,134
|
)
|
|
(3,293
|
)
|
||
Net losses on sales and valuation adjustments of OREO
|
|
493
|
|
|
1,520
|
|
||
Amortization of the FDIC indemnification asset
|
|
604
|
|
|
604
|
|
||
Net losses (gains) on sales and valuation adjustments of premises, furniture, and equipment
|
|
5,449
|
|
|
(391
|
)
|
||
BOLI income
|
|
(2,877
|
)
|
|
(2,671
|
)
|
||
Share-based compensation expense
|
|
6,196
|
|
|
5,827
|
|
||
Tax benefit (expense) related to share-based compensation
|
|
158
|
|
|
(13
|
)
|
||
Amortization of other intangible assets
|
|
3,596
|
|
|
4,128
|
|
||
Originations of mortgage loans held-for-sale
|
|
(114,142
|
)
|
|
(111,066
|
)
|
||
Proceeds from sales of mortgage loans held-for-sale
|
|
130,900
|
|
|
116,655
|
|
||
Net increase in equity securities
|
|
(586
|
)
|
|
—
|
|
||
Net increase in trading securities
|
|
—
|
|
|
(1,625
|
)
|
||
Net decrease (increase) in accrued interest receivable and other assets
|
|
8,072
|
|
|
(7,481
|
)
|
||
Net increase (decrease) in accrued interest payables and other liabilities
|
|
16,100
|
|
|
(6,933
|
)
|
||
Net cash provided by operating activities
|
|
156,056
|
|
|
81,259
|
|
||
Investing Activities
|
|
|
|
|
||||
Proceeds from maturities, repayments, and calls of securities available-for-sale
|
|
154,136
|
|
|
158,946
|
|
||
Proceeds from sales of securities available-for-sale
|
|
—
|
|
|
241,137
|
|
||
Purchases of securities available-for-sale
|
|
(462,071
|
)
|
|
(172,451
|
)
|
||
Proceeds from maturities, repayments, and calls of securities held-to-maturity
|
|
718
|
|
|
4,948
|
|
||
Purchases of securities held-to-maturity
|
|
—
|
|
|
(10
|
)
|
||
Net purchases of FHLB stock
|
|
(13,070
|
)
|
|
(3,955
|
)
|
||
Net increase in loans
|
|
(479,514
|
)
|
|
(225,537
|
)
|
||
Premiums paid on BOLI, net of proceeds from claims
|
|
113
|
|
|
(6
|
)
|
||
Proceeds from sales of OREO
|
|
8,638
|
|
|
8,476
|
|
||
Proceeds from sales of premises, furniture, and equipment
|
|
150
|
|
|
7,056
|
|
||
Purchases of premises, furniture, and equipment
|
|
(16,891
|
)
|
|
(6,619
|
)
|
||
Net cash received from acquisitions
|
|
—
|
|
|
41,717
|
|
||
Net cash (used in) provided by investing activities
|
|
(807,791
|
)
|
|
53,702
|
|
||
Financing Activities
|
|
|
|
|
||||
Net increase in deposit accounts
|
|
438,938
|
|
|
147,243
|
|
||
Net increase (decrease) in borrowed funds
|
|
266,160
|
|
|
(239,675
|
)
|
||
Cash dividends paid
|
|
(21,619
|
)
|
|
(16,485
|
)
|
||
Restricted stock activity
|
|
(4,047
|
)
|
|
(3,840
|
)
|
||
Net cash provided by (used in) financing activities
|
|
679,432
|
|
|
(112,757
|
)
|
||
Net increase in cash and cash equivalents
|
|
27,697
|
|
|
22,204
|
|
||
Cash and cash equivalents at beginning of period
|
|
346,570
|
|
|
262,148
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
374,267
|
|
|
$
|
284,352
|
|
|
|
Six Months Ended
June 30, |
||||||
|
|
2018
|
|
2017
|
||||
Supplemental Disclosures of Cash Flow Information:
|
|
|
|
|
||||
Income taxes refunded
|
|
$
|
(18,898
|
)
|
|
$
|
(958
|
)
|
Interest paid to depositors and creditors
|
|
25,056
|
|
|
16,381
|
|
||
Dividends declared, but unpaid
|
|
11,248
|
|
|
9,165
|
|
||
Stock issued for acquisitions, net of issuance costs
|
|
—
|
|
|
534,090
|
|
||
Non-cash transfers of loans to OREO
|
|
1,172
|
|
|
1,982
|
|
||
Non-cash transfers of loans held-for-investment to loans held-for-sale
|
|
9,546
|
|
|
31,564
|
|
||
Non-cash transfer of trading securities and securities available-for-sale to equity securities
|
|
27,855
|
|
|
—
|
|
|
•
|
Changes in the composition of the loan portfolio, trends in the volume of loans, and trends in delinquent and non-accrual loans that could indicate that historical trends do not reflect current conditions.
|
•
|
Changes in credit policies and procedures, such as underwriting standards and collection, charge-off, and recovery practices.
|
•
|
Changes in the experience, ability, and depth of credit management and other relevant staff.
|
•
|
Changes in the quality of the
Company
's loan review system and Board of Directors oversight.
|
•
|
The effect of any concentration of credit and changes in the level of concentrations, such as loan type or risk rating.
|
•
|
Changes in the value of the underlying collateral for collateral-dependent loans.
|
•
|
Changes in the national and local economy that affect the collectability of various segments of the portfolio.
|
•
|
The effect of other external factors, such as competition and legal and regulatory requirements, on the
Company
's loan portfolio.
|
|
|
As of June 30, 2018
|
|
As of December 31, 2017
|
||||||||||||||||||||||||||||
|
|
Amortized Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
|
Amortized Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
||||||||||||||||||||
|
|
|
Gains
|
|
Losses
|
|
|
|
Gains
|
|
Losses
|
|
||||||||||||||||||||
Securities Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. treasury securities
|
|
$
|
49,455
|
|
|
$
|
2
|
|
|
$
|
(299
|
)
|
|
$
|
49,158
|
|
|
$
|
46,529
|
|
|
$
|
—
|
|
|
$
|
(184
|
)
|
|
$
|
46,345
|
|
U.S. agency securities
|
|
150,443
|
|
|
7
|
|
|
(2,166
|
)
|
|
148,284
|
|
|
157,636
|
|
|
197
|
|
|
(986
|
)
|
|
156,847
|
|
||||||||
Collateralized mortgage
obligations ("CMOs")
|
|
1,270,304
|
|
|
368
|
|
|
(38,242
|
)
|
|
1,232,430
|
|
|
1,113,019
|
|
|
121
|
|
|
(17,954
|
)
|
|
1,095,186
|
|
||||||||
Other mortgage-backed
securities ("MBSs")
|
|
450,512
|
|
|
229
|
|
|
(13,105
|
)
|
|
437,636
|
|
|
373,676
|
|
|
201
|
|
|
(4,334
|
)
|
|
369,543
|
|
||||||||
Municipal securities
|
|
222,034
|
|
|
152
|
|
|
(3,841
|
)
|
|
218,345
|
|
|
209,558
|
|
|
693
|
|
|
(1,260
|
)
|
|
208,991
|
|
||||||||
Corporate debt securities
|
|
57,867
|
|
|
2
|
|
|
(857
|
)
|
|
57,012
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Equity securities
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,408
|
|
|
194
|
|
|
(305
|
)
|
|
7,297
|
|
||||||||
Total securities
available-for-sale
|
|
$
|
2,200,615
|
|
|
$
|
760
|
|
|
$
|
(58,510
|
)
|
|
$
|
2,142,865
|
|
|
$
|
1,907,826
|
|
|
$
|
1,406
|
|
|
$
|
(25,023
|
)
|
|
$
|
1,884,209
|
|
Securities Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Municipal securities
|
|
$
|
13,042
|
|
|
$
|
—
|
|
|
$
|
(2,124
|
)
|
|
$
|
10,918
|
|
|
$
|
13,760
|
|
|
$
|
—
|
|
|
$
|
(1,747
|
)
|
|
$
|
12,013
|
|
Equity Securities
(1)
|
|
|
|
|
|
|
|
$
|
28,441
|
|
|
|
|
|
|
|
|
$
|
—
|
|
||||||||||||
Trading Securities
(1)
|
|
|
|
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
$
|
20,447
|
|
(1)
|
As a result of accounting guidance adopted in the first quarter of 2018, equity securities are no longer presented within trading securities or securities available-for-sale and are now presented within equity securities in the Consolidated Statements of Financial Condition for the current period. For further discussion of this guidance, see Note
2
, "
Recent Accounting Pronouncements
."
|
|
|
As of June 30, 2018
|
||||||||||||||
|
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||||
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
One year or less
|
|
$
|
120,038
|
|
|
$
|
118,287
|
|
|
$
|
1,626
|
|
|
$
|
1,361
|
|
After one year to five years
|
|
165,112
|
|
|
162,703
|
|
|
5,197
|
|
|
4,350
|
|
||||
After five years to ten years
|
|
194,649
|
|
|
191,809
|
|
|
2,177
|
|
|
1,823
|
|
||||
After ten years
|
|
—
|
|
|
—
|
|
|
4,042
|
|
|
3,384
|
|
||||
Securities that do not have a single contractual maturity date
|
|
1,720,816
|
|
|
1,670,066
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
2,200,615
|
|
|
$
|
2,142,865
|
|
|
$
|
13,042
|
|
|
$
|
10,918
|
|
|
|
Quarters Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Gains on sales of securities:
|
|
|
|
|
|
|
|
|
||||||||
Gross realized gains
|
|
$
|
—
|
|
|
$
|
284
|
|
|
$
|
—
|
|
|
$
|
284
|
|
Gross realized losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net realized gains on sales of securities
|
|
—
|
|
|
284
|
|
|
—
|
|
|
284
|
|
||||
Non-cash impairment charges:
|
|
|
|
|
|
|
|
|
||||||||
Other-than-temporary securities impairment ("OTTI")
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net realized gains
|
|
$
|
—
|
|
|
$
|
284
|
|
|
$
|
—
|
|
|
$
|
284
|
|
|
|
|
|
Less Than 12 Months
|
|
12 Months or Longer
|
|
Total
|
|||||||||||||||||||
|
|
Number of
Securities
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|||||||||||||
As of June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Securities Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. treasury securities
|
|
22
|
|
|
$
|
32,699
|
|
|
$
|
252
|
|
|
$
|
14,459
|
|
|
$
|
47
|
|
|
$
|
47,158
|
|
|
$
|
299
|
|
U.S. agency securities
|
|
78
|
|
|
79,845
|
|
|
1,138
|
|
|
62,820
|
|
|
1,028
|
|
|
142,665
|
|
|
2,166
|
|
||||||
CMOs
|
|
242
|
|
|
562,594
|
|
|
13,295
|
|
|
568,315
|
|
|
24,947
|
|
|
1,130,909
|
|
|
38,242
|
|
||||||
MBSs
|
|
107
|
|
|
183,907
|
|
|
3,910
|
|
|
225,627
|
|
|
9,195
|
|
|
409,534
|
|
|
13,105
|
|
||||||
Municipal securities
|
|
451
|
|
|
122,847
|
|
|
1,872
|
|
|
58,580
|
|
|
1,969
|
|
|
181,427
|
|
|
3,841
|
|
||||||
Corporate debt securities
|
|
8
|
|
|
40,285
|
|
|
857
|
|
|
—
|
|
|
—
|
|
|
40,285
|
|
|
857
|
|
||||||
Total
|
|
908
|
|
|
$
|
1,022,177
|
|
|
$
|
21,324
|
|
|
$
|
929,801
|
|
|
$
|
37,186
|
|
|
$
|
1,951,978
|
|
|
$
|
58,510
|
|
Securities Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Municipal securities
|
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,918
|
|
|
$
|
2,124
|
|
|
$
|
10,918
|
|
|
$
|
2,124
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Securities Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. treasury securities
|
|
20
|
|
|
$
|
19,918
|
|
|
$
|
87
|
|
|
$
|
26,427
|
|
|
$
|
97
|
|
|
$
|
46,345
|
|
|
$
|
184
|
|
U.S. agency securities
|
|
72
|
|
|
66,899
|
|
|
300
|
|
|
58,021
|
|
|
686
|
|
|
124,920
|
|
|
986
|
|
||||||
CMOs
|
|
211
|
|
|
365,131
|
|
|
3,265
|
|
|
633,227
|
|
|
14,689
|
|
|
998,358
|
|
|
17,954
|
|
||||||
MBSs
|
|
86
|
|
|
126,136
|
|
|
902
|
|
|
210,017
|
|
|
3,432
|
|
|
336,153
|
|
|
4,334
|
|
||||||
Municipal securities
|
|
265
|
|
|
35,500
|
|
|
479
|
|
|
81,360
|
|
|
781
|
|
|
116,860
|
|
|
1,260
|
|
||||||
Equity securities
(1)
|
|
2
|
|
|
391
|
|
|
214
|
|
|
6,386
|
|
|
91
|
|
|
6,777
|
|
|
305
|
|
||||||
Total
|
|
656
|
|
|
$
|
613,975
|
|
|
$
|
5,247
|
|
|
$
|
1,015,438
|
|
|
$
|
19,776
|
|
|
$
|
1,629,413
|
|
|
$
|
25,023
|
|
Securities Held-to-Maturity
|
|
|
|
|
|||||||||||||||||||||||
Municipal securities
|
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,013
|
|
|
$
|
1,747
|
|
|
$
|
12,013
|
|
|
$
|
1,747
|
|
(1)
|
As a result of accounting guidance adopted in the first quarter of 2018, equity securities are no longer presented within securities available-for-sale and are now presented within equity securities in the Consolidated Statements of Financial Condition for the current period. For further discussion of this guidance, see Note
2
, "
Recent Accounting Pronouncements
."
|
|
|
As of
|
||||||
|
|
June 30,
2018 |
|
December 31,
2017 |
||||
Commercial and industrial
|
|
$
|
3,844,067
|
|
|
$
|
3,529,914
|
|
Agricultural
|
|
433,175
|
|
|
430,886
|
|
||
Commercial real estate:
|
|
|
|
|
||||
Office, retail, and industrial
|
|
1,834,918
|
|
|
1,979,820
|
|
||
Multi-family
|
|
703,091
|
|
|
675,463
|
|
||
Construction
|
|
633,601
|
|
|
539,820
|
|
||
Other commercial real estate
|
|
1,337,396
|
|
|
1,358,515
|
|
||
Total commercial real estate
|
|
4,509,006
|
|
|
4,553,618
|
|
||
Total corporate loans
|
|
8,786,248
|
|
|
8,514,418
|
|
||
Home equity
|
|
847,903
|
|
|
827,055
|
|
||
1-4 family mortgages
|
|
880,181
|
|
|
774,357
|
|
||
Installment
|
|
377,233
|
|
|
321,982
|
|
||
Total consumer loans
|
|
2,105,317
|
|
|
1,923,394
|
|
||
Total loans
|
|
$
|
10,891,565
|
|
|
$
|
10,437,812
|
|
Deferred loan fees included in total loans
|
|
$
|
5,444
|
|
|
$
|
4,986
|
|
Overdrawn demand deposits included in total loans
|
|
8,163
|
|
|
8,587
|
|
|
|
Quarters Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Corporate loan sales
|
|
|
|
|
|
|
|
|
||||||||
Proceeds from sales
|
|
$
|
3,991
|
|
|
$
|
19,569
|
|
|
$
|
12,312
|
|
|
$
|
34,937
|
|
Less book value of loans sold
|
|
3,861
|
|
|
19,123
|
|
|
11,984
|
|
|
34,240
|
|
||||
Net gains on corporate loan sales
(1)
|
|
130
|
|
|
446
|
|
|
328
|
|
|
697
|
|
||||
1-4 family mortgage loan sales
|
|
|
|
|
|
|
|
|
||||||||
Proceeds from sales
|
|
$
|
65,715
|
|
|
$
|
60,894
|
|
|
$
|
130,900
|
|
|
$
|
116,655
|
|
Less book value of loans sold
|
|
64,336
|
|
|
59,461
|
|
|
128,094
|
|
|
114,059
|
|
||||
Net gains on 1-4 family mortgage loan sales
(2)
|
|
1,379
|
|
|
1,433
|
|
|
2,806
|
|
|
2,596
|
|
||||
Total net gains on loan sales
|
|
$
|
1,509
|
|
|
$
|
1,879
|
|
|
$
|
3,134
|
|
|
$
|
3,293
|
|
(1)
|
Net gains on corporate loan sales are included in other service charges, commissions, and fees in the Condensed Consolidated Statements of Income.
|
(2)
|
Net gains on 1-4 family mortgage loan sales are included in mortgage banking income in the Condensed Consolidated Statements of Income.
|
|
|
As of June 30, 2018
|
|
As of December 31, 2017
|
||||||||||||||||||||
|
|
PCI
|
|
Non-PCI
|
|
Total
|
|
PCI
|
|
Non-PCI
|
|
Total
|
||||||||||||
Acquired loans
|
|
$
|
106,218
|
|
|
$
|
1,243,420
|
|
|
$
|
1,349,638
|
|
|
$
|
130,694
|
|
|
$
|
1,512,664
|
|
|
$
|
1,643,358
|
|
Covered loans
|
|
6,138
|
|
|
8,550
|
|
|
14,688
|
|
|
6,759
|
|
|
11,789
|
|
|
18,548
|
|
||||||
Total acquired and covered loans
|
|
$
|
112,356
|
|
|
$
|
1,251,970
|
|
|
$
|
1,364,326
|
|
|
$
|
137,453
|
|
|
$
|
1,524,453
|
|
|
$
|
1,661,906
|
|
(1)
|
Included in loans in the Consolidated Statements of Condition.
|
|
|
Quarters Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Beginning balance
|
|
$
|
3,012
|
|
|
$
|
4,220
|
|
|
$
|
3,314
|
|
|
$
|
4,522
|
|
Amortization
|
|
(302
|
)
|
|
(302
|
)
|
|
(604
|
)
|
|
(604
|
)
|
||||
Change in expected reimbursements from the FDIC for
changes in expected credit losses
|
|
29
|
|
|
(202
|
)
|
|
175
|
|
|
(530
|
)
|
||||
Net payments (from) to the FDIC
|
|
(29
|
)
|
|
202
|
|
|
(175
|
)
|
|
530
|
|
||||
Ending balance
|
|
$
|
2,710
|
|
|
$
|
3,918
|
|
|
$
|
2,710
|
|
|
$
|
3,918
|
|
|
|
Quarters Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Beginning balances
|
|
$
|
36,543
|
|
|
$
|
41,249
|
|
|
$
|
32,957
|
|
|
$
|
19,385
|
|
Additions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,316
|
|
||||
Accretion
|
|
(2,922
|
)
|
|
(3,888
|
)
|
|
(6,540
|
)
|
|
(7,843
|
)
|
||||
Other
(1)
|
|
5,387
|
|
|
2,509
|
|
|
12,591
|
|
|
1,012
|
|
||||
Ending balance
|
|
$
|
39,008
|
|
|
$
|
39,870
|
|
|
$
|
39,008
|
|
|
$
|
39,870
|
|
(1)
|
Increases represent a rise in the expected future cash flows to be collected over the remaining estimated life of the underlying portfolio, while decreases result from the resolution of certain loans occurring earlier than anticipated.
|
|
|
Aging Analysis (Accruing and Non-accrual)
|
|
|
Non-performing Loans
|
||||||||||||||||||||||||
|
|
Current
(1)
|
|
30-89 Days
Past Due
|
|
90 Days or
More Past
Due
|
|
Total
Past Due
|
|
Total
Loans
|
|
|
Non-
accrual
(2)
|
|
90 Days or More Past Due, Still Accruing Interest
|
||||||||||||||
As of June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
|
$
|
3,807,618
|
|
|
$
|
18,230
|
|
|
$
|
18,219
|
|
|
$
|
36,449
|
|
|
$
|
3,844,067
|
|
|
|
$
|
22,672
|
|
|
$
|
1,544
|
|
Agricultural
|
|
427,295
|
|
|
1,477
|
|
|
4,403
|
|
|
5,880
|
|
|
433,175
|
|
|
|
2,992
|
|
|
1,418
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Office, retail, and industrial
|
|
1,820,408
|
|
|
5,366
|
|
|
9,144
|
|
|
14,510
|
|
|
1,834,918
|
|
|
|
9,007
|
|
|
1,402
|
|
|||||||
Multi-family
|
|
696,920
|
|
|
3,530
|
|
|
2,641
|
|
|
6,171
|
|
|
703,091
|
|
|
|
3,551
|
|
|
2,269
|
|
|||||||
Construction
|
|
633,043
|
|
|
107
|
|
|
451
|
|
|
558
|
|
|
633,601
|
|
|
|
208
|
|
|
243
|
|
|||||||
Other commercial real estate
|
|
1,326,694
|
|
|
6,640
|
|
|
4,062
|
|
|
10,702
|
|
|
1,337,396
|
|
|
|
5,288
|
|
|
591
|
|
|||||||
Total commercial real estate
|
|
4,477,065
|
|
|
15,643
|
|
|
16,298
|
|
|
31,941
|
|
|
4,509,006
|
|
|
|
18,054
|
|
|
4,505
|
|
|||||||
Total corporate loans
|
|
8,711,978
|
|
|
35,350
|
|
|
38,920
|
|
|
74,270
|
|
|
8,786,248
|
|
|
|
43,718
|
|
|
7,467
|
|
|||||||
Home equity
|
|
842,257
|
|
|
4,048
|
|
|
1,598
|
|
|
5,646
|
|
|
847,903
|
|
|
|
5,399
|
|
|
—
|
|
|||||||
1-4 family mortgages
|
|
876,045
|
|
|
1,986
|
|
|
2,150
|
|
|
4,136
|
|
|
880,181
|
|
|
|
4,358
|
|
|
41
|
|
|||||||
Installment
|
|
374,011
|
|
|
2,776
|
|
|
446
|
|
|
3,222
|
|
|
377,233
|
|
|
|
—
|
|
|
446
|
|
|||||||
Total consumer loans
|
|
2,092,313
|
|
|
8,810
|
|
|
4,194
|
|
|
13,004
|
|
|
2,105,317
|
|
|
|
9,757
|
|
|
487
|
|
|||||||
Total loans
|
|
$
|
10,804,291
|
|
|
$
|
44,160
|
|
|
$
|
43,114
|
|
|
$
|
87,274
|
|
|
$
|
10,891,565
|
|
|
|
$
|
53,475
|
|
|
$
|
7,954
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
|
$
|
3,490,783
|
|
|
$
|
34,620
|
|
|
$
|
4,511
|
|
|
$
|
39,131
|
|
|
$
|
3,529,914
|
|
|
|
$
|
40,580
|
|
|
$
|
1,830
|
|
Agricultural
|
|
430,221
|
|
|
280
|
|
|
385
|
|
|
665
|
|
|
430,886
|
|
|
|
219
|
|
|
177
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Office, retail, and industrial
|
|
1,970,564
|
|
|
3,156
|
|
|
6,100
|
|
|
9,256
|
|
|
1,979,820
|
|
|
|
11,560
|
|
|
345
|
|
|||||||
Multi-family
|
|
672,098
|
|
|
3,117
|
|
|
248
|
|
|
3,365
|
|
|
675,463
|
|
|
|
377
|
|
|
20
|
|
|||||||
Construction
|
|
539,043
|
|
|
198
|
|
|
579
|
|
|
777
|
|
|
539,820
|
|
|
|
209
|
|
|
371
|
|
|||||||
Other commercial real estate
|
|
1,353,263
|
|
|
2,545
|
|
|
2,707
|
|
|
5,252
|
|
|
1,358,515
|
|
|
|
3,621
|
|
|
317
|
|
|||||||
Total commercial real estate
|
|
4,534,968
|
|
|
9,016
|
|
|
9,634
|
|
|
18,650
|
|
|
4,553,618
|
|
|
|
15,767
|
|
|
1,053
|
|
|||||||
Total corporate loans
|
|
8,455,972
|
|
|
43,916
|
|
|
14,530
|
|
|
58,446
|
|
|
8,514,418
|
|
|
|
56,566
|
|
|
3,060
|
|
|||||||
Home equity
|
|
820,099
|
|
|
4,102
|
|
|
2,854
|
|
|
6,956
|
|
|
827,055
|
|
|
|
5,946
|
|
|
98
|
|
|||||||
1-4 family mortgages
|
|
770,120
|
|
|
2,145
|
|
|
2,092
|
|
|
4,237
|
|
|
774,357
|
|
|
|
4,412
|
|
|
—
|
|
|||||||
Installment
|
|
319,178
|
|
|
2,407
|
|
|
397
|
|
|
2,804
|
|
|
321,982
|
|
|
|
—
|
|
|
397
|
|
|||||||
Total consumer loans
|
|
1,909,397
|
|
|
8,654
|
|
|
5,343
|
|
|
13,997
|
|
|
1,923,394
|
|
|
|
10,358
|
|
|
495
|
|
|||||||
Total loans
|
|
$
|
10,365,369
|
|
|
$
|
52,570
|
|
|
$
|
19,873
|
|
|
$
|
72,443
|
|
|
$
|
10,437,812
|
|
|
|
$
|
66,924
|
|
|
$
|
3,555
|
|
(1)
|
PCI loans with an accretable yield are considered current.
|
(2)
|
Includes PCI loans of
$748,000
and
$763,000
as of
June 30, 2018
and
December 31, 2017
, respectively, which no longer have an accretable yield as estimates of expected future cash flows have decreased since the acquisition due to credit deterioration.
|
|
|
Commercial,
Industrial,
and
Agricultural
|
|
Office,
Retail, and
Industrial
|
|
Multi-
family
|
|
Construction
|
|
Other
Commercial
Real Estate
|
|
Consumer
|
|
Reserve for
Unfunded
Commitments
|
|
Total
Allowance for Credit Losses
|
||||||||||||||||
Quarter ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Beginning balance
|
|
$
|
57,200
|
|
|
$
|
10,607
|
|
|
$
|
2,592
|
|
|
$
|
1,972
|
|
|
$
|
5,291
|
|
|
$
|
17,192
|
|
|
$
|
1,000
|
|
|
$
|
95,854
|
|
Charge-offs
|
|
(8,662
|
)
|
|
(305
|
)
|
|
(4
|
)
|
|
—
|
|
|
(1
|
)
|
|
(2,337
|
)
|
|
—
|
|
|
(11,309
|
)
|
||||||||
Recoveries
|
|
753
|
|
|
26
|
|
|
—
|
|
|
8
|
|
|
359
|
|
|
386
|
|
|
—
|
|
|
1,532
|
|
||||||||
Net charge-offs
|
|
(7,909
|
)
|
|
(279
|
)
|
|
(4
|
)
|
|
8
|
|
|
358
|
|
|
(1,951
|
)
|
|
—
|
|
|
(9,777
|
)
|
||||||||
Provision for loan
losses and other
|
|
10,752
|
|
|
(1,266
|
)
|
|
(413
|
)
|
|
144
|
|
|
(1,018
|
)
|
|
3,415
|
|
|
—
|
|
|
11,614
|
|
||||||||
Ending balance
|
|
$
|
60,043
|
|
|
$
|
9,062
|
|
|
$
|
2,175
|
|
|
$
|
2,124
|
|
|
$
|
4,631
|
|
|
$
|
18,656
|
|
|
$
|
1,000
|
|
|
$
|
97,691
|
|
Quarter ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Beginning balance
|
|
$
|
41,786
|
|
|
$
|
17,701
|
|
|
$
|
2,860
|
|
|
$
|
4,110
|
|
|
$
|
6,922
|
|
|
$
|
14,784
|
|
|
$
|
1,000
|
|
|
$
|
89,163
|
|
Charge-offs
|
|
(2,957
|
)
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
(307
|
)
|
|
(1,556
|
)
|
|
—
|
|
|
(4,859
|
)
|
||||||||
Recoveries
|
|
400
|
|
|
8
|
|
|
6
|
|
|
12
|
|
|
79
|
|
|
323
|
|
|
—
|
|
|
828
|
|
||||||||
Net charge-offs
|
|
(2,557
|
)
|
|
8
|
|
|
6
|
|
|
(27
|
)
|
|
(228
|
)
|
|
(1,233
|
)
|
|
—
|
|
|
(4,031
|
)
|
||||||||
Provision for loan
losses and other
|
|
7,042
|
|
|
(2,701
|
)
|
|
53
|
|
|
11
|
|
|
785
|
|
|
3,049
|
|
|
—
|
|
|
8,239
|
|
||||||||
Ending balance
|
|
$
|
46,271
|
|
|
$
|
15,008
|
|
|
$
|
2,919
|
|
|
$
|
4,094
|
|
|
$
|
7,479
|
|
|
$
|
16,600
|
|
|
$
|
1,000
|
|
|
$
|
93,371
|
|
Six months ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Beginning balance
|
|
$
|
55,791
|
|
|
$
|
10,996
|
|
|
$
|
2,534
|
|
|
$
|
3,481
|
|
|
$
|
6,381
|
|
|
$
|
16,546
|
|
|
$
|
1,000
|
|
|
$
|
96,729
|
|
Charge-offs
|
|
(23,332
|
)
|
|
(766
|
)
|
|
(4
|
)
|
|
—
|
|
|
(70
|
)
|
|
(4,222
|
)
|
|
—
|
|
|
(28,394
|
)
|
||||||||
Recoveries
|
|
1,291
|
|
|
123
|
|
|
—
|
|
|
21
|
|
|
398
|
|
|
728
|
|
|
—
|
|
|
2,561
|
|
||||||||
Net charge-offs
|
|
(22,041
|
)
|
|
(643
|
)
|
|
(4
|
)
|
|
21
|
|
|
328
|
|
|
(3,494
|
)
|
|
—
|
|
|
(25,833
|
)
|
||||||||
Provision for loan
losses and other
|
|
26,293
|
|
|
(1,291
|
)
|
|
(355
|
)
|
|
(1,378
|
)
|
|
(2,078
|
)
|
|
5,604
|
|
|
—
|
|
|
26,795
|
|
||||||||
Ending balance
|
|
$
|
60,043
|
|
|
$
|
9,062
|
|
|
$
|
2,175
|
|
|
$
|
2,124
|
|
|
$
|
4,631
|
|
|
$
|
18,656
|
|
|
$
|
1,000
|
|
|
$
|
97,691
|
|
Six months ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Beginning balance
|
|
$
|
40,709
|
|
|
$
|
17,595
|
|
|
$
|
3,261
|
|
|
$
|
3,444
|
|
|
$
|
7,739
|
|
|
$
|
13,335
|
|
|
$
|
1,000
|
|
|
$
|
87,083
|
|
Charge-offs
|
|
(7,031
|
)
|
|
(127
|
)
|
|
—
|
|
|
(44
|
)
|
|
(715
|
)
|
|
(3,220
|
)
|
|
—
|
|
|
(11,137
|
)
|
||||||||
Recoveries
|
|
2,066
|
|
|
983
|
|
|
34
|
|
|
239
|
|
|
180
|
|
|
766
|
|
|
—
|
|
|
4,268
|
|
||||||||
Net charge-offs
|
|
(4,965
|
)
|
|
856
|
|
|
34
|
|
|
195
|
|
|
(535
|
)
|
|
(2,454
|
)
|
|
—
|
|
|
(6,869
|
)
|
||||||||
Provision for loan
losses and other
|
|
10,527
|
|
|
(3,443
|
)
|
|
(376
|
)
|
|
455
|
|
|
275
|
|
|
5,719
|
|
|
—
|
|
|
13,157
|
|
||||||||
Ending balance
|
|
$
|
46,271
|
|
|
$
|
15,008
|
|
|
$
|
2,919
|
|
|
$
|
4,094
|
|
|
$
|
7,479
|
|
|
$
|
16,600
|
|
|
$
|
1,000
|
|
|
$
|
93,371
|
|
|
|
Loans
|
|
Allowance for Credit Losses
|
||||||||||||||||||||||||||||
|
|
Individually
Evaluated
for
Impairment
|
|
Collectively
Evaluated
for
Impairment
|
|
PCI
|
|
Total
|
|
Individually
Evaluated
for
Impairment
|
|
Collectively
Evaluated
for
Impairment
|
|
PCI
|
|
Total
|
||||||||||||||||
As of June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial, industrial, and
agricultural
|
|
$
|
23,598
|
|
|
$
|
4,248,880
|
|
|
$
|
4,764
|
|
|
$
|
4,277,242
|
|
|
$
|
2,884
|
|
|
$
|
56,725
|
|
|
$
|
434
|
|
|
$
|
60,043
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Office, retail, and industrial
|
|
7,642
|
|
|
1,815,329
|
|
|
11,947
|
|
|
1,834,918
|
|
|
792
|
|
|
6,624
|
|
|
1,646
|
|
|
9,062
|
|
||||||||
Multi-family
|
|
3,941
|
|
|
686,136
|
|
|
13,014
|
|
|
703,091
|
|
|
—
|
|
|
1,998
|
|
|
177
|
|
|
2,175
|
|
||||||||
Construction
|
|
—
|
|
|
628,649
|
|
|
4,952
|
|
|
633,601
|
|
|
—
|
|
|
1,968
|
|
|
156
|
|
|
2,124
|
|
||||||||
Other commercial real estate
|
|
3,165
|
|
|
1,276,791
|
|
|
57,440
|
|
|
1,337,396
|
|
|
—
|
|
|
3,823
|
|
|
808
|
|
|
4,631
|
|
||||||||
Total commercial real estate
|
|
14,748
|
|
|
4,406,905
|
|
|
87,353
|
|
|
4,509,006
|
|
|
792
|
|
|
14,413
|
|
|
2,787
|
|
|
17,992
|
|
||||||||
Total corporate loans
|
|
38,346
|
|
|
8,655,785
|
|
|
92,117
|
|
|
8,786,248
|
|
|
3,676
|
|
|
71,138
|
|
|
3,221
|
|
|
78,035
|
|
||||||||
Consumer
|
|
—
|
|
|
2,085,078
|
|
|
20,239
|
|
|
2,105,317
|
|
|
—
|
|
|
17,167
|
|
|
1,489
|
|
|
18,656
|
|
||||||||
Reserve for unfunded
commitments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
|
—
|
|
|
1,000
|
|
||||||||
Total loans
|
|
$
|
38,346
|
|
|
$
|
10,740,863
|
|
|
$
|
112,356
|
|
|
$
|
10,891,565
|
|
|
$
|
3,676
|
|
|
$
|
89,305
|
|
|
$
|
4,710
|
|
|
$
|
97,691
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial, industrial, and
agricultural
|
|
$
|
38,718
|
|
|
$
|
3,909,380
|
|
|
$
|
12,702
|
|
|
$
|
3,960,800
|
|
|
$
|
10,074
|
|
|
$
|
45,293
|
|
|
$
|
424
|
|
|
$
|
55,791
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Office, retail, and industrial
|
|
10,810
|
|
|
1,954,435
|
|
|
14,575
|
|
|
1,979,820
|
|
|
—
|
|
|
9,333
|
|
|
1,663
|
|
|
10,996
|
|
||||||||
Multi-family
|
|
621
|
|
|
660,771
|
|
|
14,071
|
|
|
675,463
|
|
|
—
|
|
|
2,436
|
|
|
98
|
|
|
2,534
|
|
||||||||
Construction
|
|
—
|
|
|
530,977
|
|
|
8,843
|
|
|
539,820
|
|
|
—
|
|
|
3,331
|
|
|
150
|
|
|
3,481
|
|
||||||||
Other commercial real estate
|
|
1,468
|
|
|
1,291,723
|
|
|
65,324
|
|
|
1,358,515
|
|
|
—
|
|
|
5,415
|
|
|
966
|
|
|
6,381
|
|
||||||||
Total commercial real estate
|
|
12,899
|
|
|
4,437,906
|
|
|
102,813
|
|
|
4,553,618
|
|
|
—
|
|
|
20,515
|
|
|
2,877
|
|
|
23,392
|
|
||||||||
Total corporate loans
|
|
51,617
|
|
|
8,347,286
|
|
|
115,515
|
|
|
8,514,418
|
|
|
10,074
|
|
|
65,808
|
|
|
3,301
|
|
|
79,183
|
|
||||||||
Consumer
|
|
—
|
|
|
1,901,456
|
|
|
21,938
|
|
|
1,923,394
|
|
|
—
|
|
|
15,533
|
|
|
1,013
|
|
|
16,546
|
|
||||||||
Reserve for unfunded
commitments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
|
—
|
|
|
1,000
|
|
||||||||
Total loans
|
|
$
|
51,617
|
|
|
$
|
10,248,742
|
|
|
$
|
137,453
|
|
|
$
|
10,437,812
|
|
|
$
|
10,074
|
|
|
$
|
82,341
|
|
|
$
|
4,314
|
|
|
$
|
96,729
|
|
|
|
As of June 30, 2018
|
|
|
As of December 31, 2017
|
||||||||||||||||||||||||||||
|
|
Recorded Investment In
|
|
|
|
|
Recorded Investment In
|
|
|
||||||||||||||||||||||||
|
|
Loans with
No Specific
Reserve
|
|
Loans with
a Specific
Reserve
|
|
Unpaid
Principal
Balance
|
|
Specific
Reserve
|
|
|
Loans with
No Specific
Reserve
|
|
Loans with
a Specific
Reserve
|
|
Unpaid
Principal
Balance
|
|
Specific
Reserve
|
||||||||||||||||
Commercial and industrial
|
|
$
|
5,777
|
|
|
$
|
14,919
|
|
|
$
|
40,033
|
|
|
$
|
2,683
|
|
|
|
$
|
4,234
|
|
|
$
|
34,484
|
|
|
$
|
53,192
|
|
|
$
|
10,074
|
|
Agricultural
|
|
—
|
|
|
2,902
|
|
|
4,672
|
|
|
201
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Office, retail, and industrial
|
|
3,303
|
|
|
4,339
|
|
|
8,125
|
|
|
792
|
|
|
|
7,154
|
|
|
3,656
|
|
|
14,246
|
|
|
—
|
|
||||||||
Multi-family
|
|
3,941
|
|
|
—
|
|
|
3,941
|
|
|
—
|
|
|
|
621
|
|
|
—
|
|
|
621
|
|
|
—
|
|
||||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other commercial real estate
|
|
3,165
|
|
|
—
|
|
|
3,199
|
|
|
—
|
|
|
|
1,468
|
|
|
—
|
|
|
1,566
|
|
|
—
|
|
||||||||
Total commercial real estate
|
|
10,409
|
|
|
4,339
|
|
|
15,265
|
|
|
792
|
|
|
|
9,243
|
|
|
3,656
|
|
|
16,433
|
|
|
—
|
|
||||||||
Total impaired loans
individually evaluated for
impairment
|
|
$
|
16,186
|
|
|
$
|
22,160
|
|
|
$
|
59,970
|
|
|
$
|
3,676
|
|
|
|
$
|
13,477
|
|
|
$
|
38,140
|
|
|
$
|
69,625
|
|
|
$
|
10,074
|
|
|
|
Quarters Ended June 30,
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Average
Recorded Investment |
|
Interest
Income
Recognized
(1)
|
|
Average
Recorded Investment |
|
Interest
Income
Recognized
(1)
|
||||||||
Commercial and industrial
|
|
$
|
31,787
|
|
|
$
|
14
|
|
|
$
|
33,648
|
|
|
$
|
342
|
|
Agricultural
|
|
3,386
|
|
|
25
|
|
|
697
|
|
|
—
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|||||||
Office, retail, and industrial
|
|
9,509
|
|
|
656
|
|
|
13,612
|
|
|
169
|
|
||||
Multi-family
|
|
2,166
|
|
|
48
|
|
|
396
|
|
|
—
|
|
||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other commercial real estate
|
|
2,694
|
|
|
61
|
|
|
2,334
|
|
|
8
|
|
||||
Total commercial real estate
|
|
14,369
|
|
|
765
|
|
|
16,342
|
|
|
177
|
|
||||
Total impaired loans
|
|
$
|
49,542
|
|
|
$
|
804
|
|
|
$
|
50,687
|
|
|
$
|
519
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Six Months Ended June 30,
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Average
Recorded Investment |
|
Interest
Income Recognized (1) |
|
Average
Recorded Investment |
|
Interest
Income Recognized (1) |
||||||||
Commercial and industrial
|
|
$
|
34,097
|
|
|
$
|
36
|
|
|
$
|
30,647
|
|
|
$
|
556
|
|
Agricultural
|
|
2,257
|
|
|
25
|
|
|
464
|
|
|
—
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|||||||
Office, retail, and industrial
|
|
9,942
|
|
|
768
|
|
|
14,503
|
|
|
262
|
|
||||
Multi-family
|
|
1,651
|
|
|
55
|
|
|
397
|
|
|
28
|
|
||||
Construction
|
|
—
|
|
|
—
|
|
|
11
|
|
|
136
|
|
||||
Other commercial real estate
|
|
2,285
|
|
|
113
|
|
|
1,984
|
|
|
20
|
|
||||
Total commercial real estate
|
|
13,878
|
|
|
936
|
|
|
16,895
|
|
|
446
|
|
||||
Total impaired loans
|
|
$
|
50,232
|
|
|
$
|
997
|
|
|
$
|
48,006
|
|
|
$
|
1,002
|
|
(1)
|
Recorded using the cash basis of accounting.
|
|
|
Pass
|
|
Special
Mention
(1)(4)
|
|
Substandard
(2)(4)
|
|
Non-accrual
(3)
|
|
Total
|
||||||||||
As of June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
3,648,626
|
|
|
$
|
122,881
|
|
|
$
|
49,888
|
|
|
$
|
22,672
|
|
|
$
|
3,844,067
|
|
Agricultural
|
|
415,043
|
|
|
8,474
|
|
|
6,666
|
|
|
2,992
|
|
|
433,175
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Office, retail, and industrial
|
|
1,770,908
|
|
|
23,602
|
|
|
31,401
|
|
|
9,007
|
|
|
1,834,918
|
|
|||||
Multi-family
|
|
687,065
|
|
|
10,460
|
|
|
2,015
|
|
|
3,551
|
|
|
703,091
|
|
|||||
Construction
|
|
607,142
|
|
|
18,915
|
|
|
7,336
|
|
|
208
|
|
|
633,601
|
|
|||||
Other commercial real estate
|
|
1,281,870
|
|
|
32,137
|
|
|
18,101
|
|
|
5,288
|
|
|
1,337,396
|
|
|||||
Total commercial real estate
|
|
4,346,985
|
|
|
85,114
|
|
|
58,853
|
|
|
18,054
|
|
|
4,509,006
|
|
|||||
Total corporate loans
|
|
$
|
8,410,654
|
|
|
$
|
216,469
|
|
|
$
|
115,407
|
|
|
$
|
43,718
|
|
|
$
|
8,786,248
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
3,388,133
|
|
|
$
|
70,863
|
|
|
$
|
30,338
|
|
|
$
|
40,580
|
|
|
$
|
3,529,914
|
|
Agricultural
|
|
413,946
|
|
|
10,989
|
|
|
5,732
|
|
|
219
|
|
|
430,886
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Office, retail, and industrial
|
|
1,903,737
|
|
|
25,546
|
|
|
38,977
|
|
|
11,560
|
|
|
1,979,820
|
|
|||||
Multi-family
|
|
665,496
|
|
|
7,395
|
|
|
2,195
|
|
|
377
|
|
|
675,463
|
|
|||||
Construction
|
|
521,911
|
|
|
10,184
|
|
|
7,516
|
|
|
209
|
|
|
539,820
|
|
|||||
Other commercial real estate
|
|
1,304,337
|
|
|
29,624
|
|
|
20,933
|
|
|
3,621
|
|
|
1,358,515
|
|
|||||
Total commercial real estate
|
|
4,395,481
|
|
|
72,749
|
|
|
69,621
|
|
|
15,767
|
|
|
4,553,618
|
|
|||||
Total corporate loans
|
|
$
|
8,197,560
|
|
|
$
|
154,601
|
|
|
$
|
105,691
|
|
|
$
|
56,566
|
|
|
$
|
8,514,418
|
|
(1)
|
Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future.
|
(2)
|
Loans categorized as substandard exhibit well-defined weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well-secured and collection of principal and interest is expected within a reasonable time.
|
(3)
|
Loans categorized as non-accrual exhibit well-defined weaknesses that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected.
|
(4)
|
Total special mention and substandard loans includes accruing
TDR
s of
$645,000
as of
June 30, 2018
and
$657,000
as of
December 31, 2017
.
|
|
|
Performing
|
|
Non-accrual
|
|
Total
|
||||||
As of June 30, 2018
|
|
|
|
|
|
|
||||||
Home equity
|
|
$
|
842,504
|
|
|
$
|
5,399
|
|
|
$
|
847,903
|
|
1-4 family mortgages
|
|
875,823
|
|
|
4,358
|
|
|
880,181
|
|
|||
Installment
|
|
377,233
|
|
|
—
|
|
|
377,233
|
|
|||
Total consumer loans
|
|
$
|
2,095,560
|
|
|
$
|
9,757
|
|
|
$
|
2,105,317
|
|
As of December 31, 2017
|
|
|
|
|
|
|
||||||
Home equity
|
|
$
|
821,109
|
|
|
$
|
5,946
|
|
|
$
|
827,055
|
|
1-4 family mortgages
|
|
769,945
|
|
|
4,412
|
|
|
774,357
|
|
|||
Installment
|
|
321,982
|
|
|
—
|
|
|
321,982
|
|
|||
Total consumer loans
|
|
$
|
1,913,036
|
|
|
$
|
10,358
|
|
|
$
|
1,923,394
|
|
|
|
As of June 30, 2018
|
|
As of December 31, 2017
|
||||||||||||||||||||
|
|
Accruing
|
|
Non-accrual
(1)
|
|
Total
|
|
Accruing
|
|
Non-accrual
(1)
|
|
Total
|
||||||||||||
Commercial and industrial
|
|
$
|
255
|
|
|
$
|
6,845
|
|
|
$
|
7,100
|
|
|
$
|
264
|
|
|
$
|
18,959
|
|
|
$
|
19,223
|
|
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Office, retail, and industrial
|
|
—
|
|
|
501
|
|
|
501
|
|
|
—
|
|
|
4,236
|
|
|
4,236
|
|
||||||
Multi-family
|
|
566
|
|
|
—
|
|
|
566
|
|
|
574
|
|
|
149
|
|
|
723
|
|
||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other commercial real estate
|
|
187
|
|
|
—
|
|
|
187
|
|
|
192
|
|
|
—
|
|
|
192
|
|
||||||
Total commercial real estate
|
|
753
|
|
|
501
|
|
|
1,254
|
|
|
766
|
|
|
4,385
|
|
|
5,151
|
|
||||||
Total corporate loans
|
|
1,008
|
|
|
7,346
|
|
|
8,354
|
|
|
1,030
|
|
|
23,344
|
|
|
24,374
|
|
||||||
Home equity
|
|
84
|
|
|
470
|
|
|
554
|
|
|
86
|
|
|
738
|
|
|
824
|
|
||||||
1-4 family mortgages
|
|
668
|
|
|
422
|
|
|
1,090
|
|
|
680
|
|
|
451
|
|
|
1,131
|
|
||||||
Installment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total consumer loans
|
|
752
|
|
|
892
|
|
|
1,644
|
|
|
766
|
|
|
1,189
|
|
|
1,955
|
|
||||||
Total loans
|
|
$
|
1,760
|
|
|
$
|
8,238
|
|
|
$
|
9,998
|
|
|
$
|
1,796
|
|
|
$
|
24,533
|
|
|
$
|
26,329
|
|
(1)
|
These
TDR
s are included in non-accrual loans in the preceding tables.
|
|
|
Quarters Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Accruing
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
1,778
|
|
|
$
|
2,112
|
|
|
$
|
1,796
|
|
|
$
|
2,291
|
|
Additions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
922
|
|
||||
Net payments
|
|
(18
|
)
|
|
(83
|
)
|
|
(36
|
)
|
|
(107
|
)
|
||||
Net transfers from (to) non-accrual
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,077
|
)
|
||||
Ending balance
|
|
1,760
|
|
|
2,029
|
|
|
1,760
|
|
|
2,029
|
|
||||
Non-accrual
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
20,466
|
|
|
3,112
|
|
|
24,533
|
|
|
6,297
|
|
||||
Additions
|
|
—
|
|
|
—
|
|
|
355
|
|
|
—
|
|
||||
Net payments
|
|
(9,865
|
)
|
|
(75
|
)
|
|
(12,978
|
)
|
|
(4,225
|
)
|
||||
Charge-offs
|
|
(2,363
|
)
|
|
(1
|
)
|
|
(3,672
|
)
|
|
(113
|
)
|
||||
Net transfers from accruing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,077
|
|
||||
Ending balance
|
|
8,238
|
|
|
3,036
|
|
|
8,238
|
|
|
3,036
|
|
||||
Total TDRs
|
|
$
|
9,998
|
|
|
$
|
5,065
|
|
|
$
|
9,998
|
|
|
$
|
5,065
|
|
|
|
Quarters Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
|
$
|
29,600
|
|
|
$
|
34,950
|
|
|
$
|
63,110
|
|
|
$
|
57,805
|
|
Net income applicable to non-vested restricted shares
|
|
(240
|
)
|
|
(336
|
)
|
|
(551
|
)
|
|
(570
|
)
|
||||
Net income applicable to common shares
|
|
$
|
29,360
|
|
|
$
|
34,614
|
|
|
$
|
62,559
|
|
|
$
|
57,235
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding (basic)
|
|
102,159
|
|
|
101,743
|
|
|
102,041
|
|
|
101,081
|
|
||||
Dilutive effect of common stock equivalents
|
|
—
|
|
|
20
|
|
|
8
|
|
|
20
|
|
||||
Weighted-average diluted common shares outstanding
|
|
102,159
|
|
|
101,763
|
|
|
102,049
|
|
|
101,101
|
|
||||
Basic EPS
|
|
$
|
0.29
|
|
|
$
|
0.34
|
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
Diluted EPS
|
|
$
|
0.29
|
|
|
$
|
0.34
|
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
Anti-dilutive shares not included in the computation of diluted EPS
(1)
|
|
—
|
|
|
195
|
|
|
54
|
|
|
269
|
|
(1)
|
This amount represents outstanding stock options for which the exercise price is greater than the average market price of the Company's common stock. The final outstanding stock options were exercised during the first quarter of 2018.
|
|
|
As of
|
||||||
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Gross notional amount outstanding
|
|
$
|
5,208
|
|
|
$
|
5,458
|
|
Derivative liability fair value in other liabilities
|
|
(33
|
)
|
|
(101
|
)
|
||
Weighted-average interest rate received
|
|
4.00
|
%
|
|
3.38
|
%
|
||
Weighted-average interest rate paid
|
|
5.96
|
%
|
|
5.96
|
%
|
||
Weighted-average maturity (in years)
|
|
0.35
|
|
|
0.84
|
|
||
Fair value of derivative
(1)
|
|
$
|
40
|
|
|
$
|
110
|
|
(1)
|
This amount represents the fair value if credit risk related contingent features were triggered.
|
|
|
As of
|
||||||
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Gross notional amount outstanding
|
|
$
|
2,170,000
|
|
|
$
|
1,960,000
|
|
Derivative asset fair value in other assets
(1)
|
|
8,389
|
|
|
3,989
|
|
||
Derivative liability fair value in other liabilities
(1)
|
|
(18,876
|
)
|
|
(10,219
|
)
|
||
Weighted-average interest rate received
|
|
2.01
|
%
|
|
1.58
|
%
|
||
Weighted-average interest rate paid
|
|
1.97
|
%
|
|
1.61
|
%
|
||
Weighted-average maturity (in years)
|
|
2.01
|
|
|
2.25
|
|
(1)
|
Certain cash flow hedges are transacted through a clearinghouse ("centrally cleared") and their change in fair value is settled by the counterparties to the transaction, which results in no fair value.
|
|
|
As of
|
||||||
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Gross notional amount outstanding
|
|
$
|
3,060,888
|
|
|
$
|
2,665,358
|
|
Derivative asset fair value in other assets
(1)
|
|
26,691
|
|
|
17,079
|
|
||
Derivative liability fair value in other liabilities
(1)
|
|
(29,131
|
)
|
|
(14,930
|
)
|
||
Fair value of derivative
(2)
|
|
29,141
|
|
|
15,059
|
|
(1)
|
Certain other derivative instruments are centrally cleared and their change in fair value is settled by the counterparties to the transaction, which results in no fair value.
|
(2)
|
This amount represents the fair value if credit risk related contingent features were triggered.
|
|
|
Quarters Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Gains (losses) recognized in other comprehensive income
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps in interest income
|
|
$
|
3,577
|
|
|
$
|
3,541
|
|
|
$
|
10,573
|
|
|
$
|
5,352
|
|
Interest rate swaps in interest expense
|
|
(2,860
|
)
|
|
(3,089
|
)
|
|
(10,043
|
)
|
|
(3,391
|
)
|
||||
Reclassification of gains (losses) included in net income
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps in interest income
|
|
$
|
376
|
|
|
$
|
1,531
|
|
|
$
|
647
|
|
|
$
|
3,387
|
|
Interest rate swaps in interest expense
|
|
(503
|
)
|
|
(1,078
|
)
|
|
(1,109
|
)
|
|
(2,223
|
)
|
|
|
Quarters Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Fair Value Hedges
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps in interest income
|
|
$
|
(18
|
)
|
|
$
|
(56
|
)
|
|
$
|
(59
|
)
|
|
$
|
(90
|
)
|
Cash Flow Hedges
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps in interest income
|
|
376
|
|
|
1,531
|
|
|
647
|
|
|
3,387
|
|
||||
Interest rate swaps in interest expense
|
|
(503
|
)
|
|
(1,078
|
)
|
|
(1,109
|
)
|
|
(2,223
|
)
|
||||
Total cash flow hedges
|
|
(127
|
)
|
|
453
|
|
|
(462
|
)
|
|
1,164
|
|
||||
Total net (losses) gains on hedges
|
|
$
|
(145
|
)
|
|
$
|
397
|
|
|
$
|
(521
|
)
|
|
$
|
1,074
|
|
|
|
As of June 30, 2018
|
|
As of December 31, 2017
|
||||||||||||
|
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
Gross amounts recognized
|
|
$
|
35,080
|
|
|
$
|
48,040
|
|
|
$
|
21,068
|
|
|
$
|
25,250
|
|
Less: amounts offset in the Consolidated Statements of
Financial Condition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net amount presented in the Consolidated Statements of
Financial Condition
(1)
|
|
35,080
|
|
|
48,040
|
|
|
21,068
|
|
|
25,250
|
|
||||
Gross amounts not offset in the Consolidated Statements of
Financial Condition:
|
|
|
|
|
|
|
|
|
||||||||
Offsetting derivative positions
|
|
(14,704
|
)
|
|
(14,704
|
)
|
|
(16,880
|
)
|
|
(16,880
|
)
|
||||
Cash collateral pledged
|
|
(17,360
|
)
|
|
(4,480
|
)
|
|
—
|
|
|
(8,370
|
)
|
||||
Net credit exposure
|
|
$
|
3,016
|
|
|
$
|
28,856
|
|
|
$
|
4,188
|
|
|
$
|
—
|
|
(1)
|
Included in other assets or other liabilities in the Consolidated Statements of Financial Condition.
|
|
|
As of
|
||||||
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Commitments to extend credit:
|
|
|
|
|
||||
Commercial, industrial, and agricultural
|
|
$
|
1,656,372
|
|
|
$
|
1,729,426
|
|
Commercial real estate
|
|
349,861
|
|
|
377,551
|
|
||
Home equity
|
|
546,600
|
|
|
514,973
|
|
||
Other commitments
(1)
|
|
244,752
|
|
|
244,222
|
|
||
Total commitments to extend credit
|
|
$
|
2,797,585
|
|
|
$
|
2,866,172
|
|
|
|
|
|
|
||||
Letters of credit
|
|
$
|
119,941
|
|
|
$
|
128,801
|
|
(1)
|
Other commitments includes installment and overdraft protection program commitments.
|
•
|
Level 1 – Quoted prices in active markets for identical assets or liabilities.
|
•
|
Level 2 – Observable inputs other than level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
|
•
|
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs require significant management judgment or estimation, some of which use model-based techniques and may be internally developed.
|
|
|
As of June 30, 2018
|
|
As of December 31, 2017
|
||||||||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trading securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Money market funds
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,685
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Mutual funds
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,762
|
|
|
—
|
|
|
—
|
|
||||||
Total trading securities
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,447
|
|
|
—
|
|
|
—
|
|
||||||
Equity securities
(1)
|
|
21,333
|
|
|
7,108
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Securities available-for-sale
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. treasury securities
|
|
49,158
|
|
|
—
|
|
|
—
|
|
|
46,345
|
|
|
—
|
|
|
—
|
|
||||||
U.S. agency securities
|
|
—
|
|
|
148,284
|
|
|
—
|
|
|
—
|
|
|
156,847
|
|
|
—
|
|
||||||
CMOs
|
|
—
|
|
|
1,232,430
|
|
|
—
|
|
|
—
|
|
|
1,095,186
|
|
|
—
|
|
||||||
MBSs
|
|
—
|
|
|
437,636
|
|
|
—
|
|
|
—
|
|
|
369,543
|
|
|
—
|
|
||||||
Municipal securities
|
|
—
|
|
|
218,345
|
|
|
—
|
|
|
—
|
|
|
208,991
|
|
|
—
|
|
||||||
Corporate debt securities
|
|
—
|
|
|
57,012
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Equity securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,297
|
|
|
—
|
|
||||||
Total securities available-for-sale
|
|
49,158
|
|
|
2,093,707
|
|
|
—
|
|
|
46,345
|
|
|
1,837,864
|
|
|
—
|
|
||||||
Mortgage servicing rights ("MSRs")
(2)
|
|
—
|
|
|
—
|
|
|
6,671
|
|
|
—
|
|
|
—
|
|
|
5,894
|
|
||||||
Derivative assets
(2)
|
|
—
|
|
|
35,080
|
|
|
—
|
|
|
—
|
|
|
21,068
|
|
|
—
|
|
||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative liabilities
(3)
|
|
$
|
—
|
|
|
$
|
48,040
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25,250
|
|
|
$
|
—
|
|
(1)
|
As a result of recently adopted accounting guidance, equity securities are no longer presented within trading securities or securities available-for-sale for the prior period and are now presented within equity securities for the current period. For further discussion of this guidance, see Note 2 of "Notes to the Condensed Consolidated Financial Statements" in Item 1 of this Form 10-Q.
|
(2)
|
Included in other assets in the Consolidated Statements of Financial Condition.
|
(3)
|
Included in other liabilities in the Consolidated Statements of Financial Condition.
|
|
|
As of
|
||||||||
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||
Prepayment speed
|
|
6.7
|
%
|
-
|
13.5%
|
|
4.2
|
%
|
-
|
13.1%
|
Maturity (months)
|
|
4
|
|
-
|
106
|
|
6
|
|
-
|
92
|
Discount rate
|
|
9.5
|
%
|
-
|
12.0%
|
|
9.5
|
%
|
-
|
12.0%
|
|
|
Quarters Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Beginning balance
|
|
$
|
6,468
|
|
|
$
|
6,245
|
|
|
$
|
5,894
|
|
|
$
|
6,120
|
|
New MSRs
|
|
393
|
|
|
205
|
|
|
569
|
|
|
361
|
|
||||
Total gains (losses) included in earnings
(1)
:
|
|
|
|
|
|
|
|
|
||||||||
Changes in valuation inputs and assumptions
|
|
2
|
|
|
(260
|
)
|
|
562
|
|
|
(88
|
)
|
||||
Other changes in fair value
(2)
|
|
(192
|
)
|
|
(265
|
)
|
|
(354
|
)
|
|
(468
|
)
|
||||
Ending balance
|
|
$
|
6,671
|
|
|
$
|
5,925
|
|
|
$
|
6,671
|
|
|
$
|
5,925
|
|
Contractual servicing fees earned
(1)
|
|
$
|
369
|
|
|
$
|
384
|
|
|
$
|
747
|
|
|
$
|
779
|
|
(1)
|
Included in mortgage banking income in the Condensed Consolidated Statements of Income and related to assets held as of
June 30, 2018
and
2017
.
|
(2)
|
Primarily represents changes in expected future cash flows due to payoffs and paydowns.
|
|
|
As of June 30, 2018
|
|
As of December 31, 2017
|
||||||||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Collateral-dependent impaired loans
(1)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,810
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
33,240
|
|
OREO
(2)
|
|
—
|
|
|
—
|
|
|
5,177
|
|
|
—
|
|
|
—
|
|
|
12,340
|
|
||||||
Loans held-for-sale
(3)
|
|
—
|
|
|
—
|
|
|
6,030
|
|
|
—
|
|
|
—
|
|
|
21,098
|
|
||||||
Assets held-for-sale
(4)
|
|
—
|
|
|
—
|
|
|
3,899
|
|
|
—
|
|
|
—
|
|
|
2,208
|
|
(1)
|
Includes impaired loans with charge-offs and impaired loans with a specific reserve during the periods presented.
|
(2)
|
Includes
OREO
with fair value adjustments subsequent to initial transfer that occurred during the periods presented.
|
(3)
|
Included in other assets in the Consolidated Statements of Financial Condition.
|
(4)
|
Included in premises, furniture, and equipment in the Consolidated Statements of Financial Condition.
|
|
|
|
|
As of
|
||||||||||||||
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
Fair Value Hierarchy
Level
|
|
Carrying
Amount
|
|
Fair Value
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and due from banks
|
|
1
|
|
$
|
181,482
|
|
|
$
|
181,482
|
|
|
$
|
192,800
|
|
|
$
|
192,800
|
|
Interest-bearing deposits in other banks
|
|
2
|
|
192,785
|
|
|
192,785
|
|
|
153,770
|
|
|
153,770
|
|
||||
Securities held-to-maturity
|
|
2
|
|
13,042
|
|
|
10,918
|
|
|
13,760
|
|
|
12,013
|
|
||||
FHLB and FRB stock
|
|
2
|
|
82,778
|
|
|
82,778
|
|
|
69,708
|
|
|
69,708
|
|
||||
Loans
|
|
3
|
|
10,797,584
|
|
|
10,451,952
|
|
|
10,345,397
|
|
|
10,059,992
|
|
||||
Investment in BOLI
|
|
3
|
|
282,664
|
|
|
282,664
|
|
|
279,900
|
|
|
279,900
|
|
||||
Accrued interest receivable
|
|
3
|
|
48,542
|
|
|
48,542
|
|
|
45,261
|
|
|
45,261
|
|
||||
Other interest-earning assets
|
|
3
|
|
78
|
|
|
78
|
|
|
228
|
|
|
228
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||
Deposits
|
|
2
|
|
$
|
11,492,263
|
|
|
$
|
11,470,263
|
|
|
$
|
11,053,325
|
|
|
$
|
11,038,819
|
|
Borrowed funds
|
|
2
|
|
981,044
|
|
|
981,044
|
|
|
714,884
|
|
|
714,884
|
|
||||
Senior and subordinated debt
|
|
2
|
|
195,453
|
|
|
208,425
|
|
|
195,170
|
|
|
208,666
|
|
||||
Accrued interest payable
|
|
2
|
|
7,115
|
|
|
7,115
|
|
|
4,704
|
|
|
4,704
|
|
•
|
Net Interest Income
– Net interest income, our primary source of revenue, equals the difference between interest income and fees earned on interest-earning assets and interest expense incurred on interest-bearing liabilities.
|
•
|
Net Interest Margin
– Net interest margin equals tax-equivalent net interest income divided by total average interest-earning assets.
|
•
|
Noninterest Income
– Noninterest income is the income we earn from fee-based revenues, investment in bank-owned life insurance ("BOLI"), other income, and non-operating revenues.
|
•
|
Noninterest Expense
– Noninterest expense is the expense we incur to operate the Company, which includes salaries and employee benefits, net occupancy and equipment, professional services, and other costs.
|
•
|
Asset Quality
– Asset quality represents an estimation of the quality of our loan portfolio, including an assessment of the credit risk related to existing and potential loss exposure, and can be evaluated using a number of quantitative measures, such as non-performing loans to total loans.
|
•
|
Regulatory Capital
– Our regulatory capital is classified in one of the following tiers: (i) Common Equity Tier 1 capital ("CET1"), which consists of common equity and retained earnings, less goodwill and other intangible assets and a portion of disallowed deferred tax assets, (ii) Tier 1 capital, which consists of CET1 and qualifying trust-preferred securities and the remaining portion of disallowed deferred tax assets, and (iii) Tier 2 capital, which includes qualifying subordinated debt and the allowance for credit losses, subject to limitations.
|
|
Quarters Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Operating Results
|
|
|
|
|
|
|
|
||||||||
Interest income
|
$
|
142,088
|
|
|
$
|
126,516
|
|
|
$
|
273,433
|
|
|
$
|
250,215
|
|
Interest expense
|
14,685
|
|
|
8,933
|
|
|
27,467
|
|
|
17,435
|
|
||||
Net interest income
|
127,403
|
|
|
117,583
|
|
|
245,966
|
|
|
232,780
|
|
||||
Provision for loan losses
|
11,614
|
|
|
8,239
|
|
|
26,795
|
|
|
13,157
|
|
||||
Noninterest income
|
36,947
|
|
|
44,945
|
|
|
72,464
|
|
|
84,896
|
|
||||
Noninterest expense
|
113,416
|
|
|
99,751
|
|
|
208,998
|
|
|
216,393
|
|
||||
Income before income tax expense
|
39,320
|
|
|
54,538
|
|
|
82,637
|
|
|
88,126
|
|
||||
Income tax expense
|
9,720
|
|
|
19,588
|
|
|
19,527
|
|
|
30,321
|
|
||||
Net income
|
$
|
29,600
|
|
|
$
|
34,950
|
|
|
$
|
63,110
|
|
|
$
|
57,805
|
|
Weighted-average diluted common shares outstanding
|
102,159
|
|
|
101,763
|
|
|
102,049
|
|
|
101,101
|
|
||||
Diluted earnings per common share
|
$
|
0.29
|
|
|
$
|
0.34
|
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
Diluted earnings per common share, adjusted
(1)
|
$
|
0.40
|
|
|
$
|
0.35
|
|
|
$
|
0.72
|
|
|
$
|
0.68
|
|
Performance Ratios
|
|
|
|
|
|
|
|
||||||||
Return on average common equity
(2)
|
6.23
|
%
|
|
7.58
|
%
|
|
6.70
|
%
|
|
6.42
|
%
|
||||
Return on average common equity, adjusted
(1)(2)
|
8.62
|
%
|
|
7.74
|
%
|
|
7.91
|
%
|
|
7.75
|
%
|
||||
Return on average tangible common equity
(2)
|
10.83
|
%
|
|
13.37
|
%
|
|
11.65
|
%
|
|
11.52
|
%
|
||||
Return on average tangible common equity, adjusted
(1)(2)
|
14.81
|
%
|
|
13.64
|
%
|
|
13.67
|
%
|
|
13.81
|
%
|
||||
Return on average assets
(2)(3)
|
0.81
|
%
|
|
1.00
|
%
|
|
0.88
|
%
|
|
0.84
|
%
|
||||
Return on average assets, adjusted
(1)(2)
|
1.12
|
%
|
|
1.02
|
%
|
|
1.04
|
%
|
|
1.02
|
%
|
||||
Tax-equivalent net interest margin
(1)(2)(3)
|
3.91
|
%
|
|
3.88
|
%
|
|
3.85
|
%
|
|
3.88
|
%
|
||||
Efficiency ratio
(1)
|
59.65
|
%
|
|
59.01
|
%
|
|
60.28
|
%
|
|
60.13
|
%
|
||||
Efficiency ratio (prior presentation)
(1)(4)
|
N/A
|
|
|
58.67
|
%
|
|
N/A
|
|
|
59.80
|
%
|
(1)
|
This item is a non-GAAP financial measure. For a discussion of non-GAAP financial measures, see the section of this Item 2 titled "
Non-GAAP Financial Information and Reconciliations
."
|
(2)
|
These ratios are presented on an annualized basis.
|
(3)
|
See the section of this Item 2 titled "
Earnings Performance
" below for additional discussion and calculation of this financial measure.
|
(4)
|
Presented as calculated prior to March 31, 2018, which included a tax-equivalent adjustment for BOLI. Management believes that removing this adjustment from the current calculation of this metric enhances comparability for peer comparison purposes.
|
|
As of
|
|
June 30, 2018
Change From |
||||||||||||||||
June 30,
2018 |
|
December 31,
2017 |
|
June 30,
2017 |
|
December 31,
2017 |
|
June 30,
2017 |
|||||||||||
Balance Sheet Highlights
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
14,818,076
|
|
|
$
|
14,077,052
|
|
|
$
|
13,969,140
|
|
|
$
|
741,024
|
|
|
$
|
848,936
|
|
Total loans
|
10,891,565
|
|
|
10,437,812
|
|
|
10,232,159
|
|
|
453,753
|
|
|
659,406
|
|
|||||
Total deposits
|
11,492,263
|
|
|
11,053,325
|
|
|
10,999,720
|
|
|
438,938
|
|
|
492,543
|
|
|||||
Core deposits
|
9,567,902
|
|
|
9,406,542
|
|
|
9,461,176
|
|
|
161,360
|
|
|
106,726
|
|
|||||
Loans to deposits
|
94.8
|
%
|
|
94.4
|
%
|
|
93.0
|
%
|
|
|
|
|
|||||||
Core deposits to total deposits
|
83.3
|
%
|
|
85.1
|
%
|
|
86.0
|
%
|
|
|
|
|
|||||||
Asset Quality Highlights
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-accrual loans
|
$
|
53,475
|
|
|
$
|
66,924
|
|
|
$
|
79,196
|
|
|
$
|
(13,449
|
)
|
|
$
|
(25,721
|
)
|
90 days or more past due loans, still
accruing interest
(1)
|
7,954
|
|
|
3,555
|
|
|
2,059
|
|
|
4,399
|
|
|
5,895
|
|
|||||
Total non-performing loans
|
61,429
|
|
|
70,479
|
|
|
81,255
|
|
|
(9,050
|
)
|
|
(19,826
|
)
|
|||||
Accruing troubled debt
restructurings ("TDRs") |
1,760
|
|
|
1,796
|
|
|
2,029
|
|
|
(36
|
)
|
|
(269
|
)
|
|||||
Other real estate owned ("OREO")
|
12,892
|
|
|
20,851
|
|
|
26,493
|
|
|
(7,959
|
)
|
|
(13,601
|
)
|
|||||
Total non-performing assets
|
$
|
76,081
|
|
|
$
|
93,126
|
|
|
$
|
109,777
|
|
|
$
|
(17,045
|
)
|
|
$
|
(33,696
|
)
|
30-89 days past due loans
(1)
|
$
|
39,171
|
|
|
$
|
39,725
|
|
|
$
|
19,081
|
|
|
$
|
(554
|
)
|
|
$
|
20,090
|
|
Non-performing assets to total loans plus
OREO |
0.70
|
%
|
|
0.89
|
%
|
|
1.07
|
%
|
|
|
|
|
|||||||
Allowance for Credit Losses
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses
|
$
|
97,691
|
|
|
$
|
96,729
|
|
|
$
|
93,371
|
|
|
$
|
962
|
|
|
$
|
4,320
|
|
Allowance for credit losses to
total loans (2) |
0.90
|
%
|
|
0.93
|
%
|
|
0.91
|
%
|
|
|
|
|
|||||||
Allowance for credit losses to
total loans, excluding acquired loans (3) |
1.00
|
%
|
|
1.07
|
%
|
|
1.10
|
%
|
|
|
|
|
|||||||
Allowance for credit losses to
non-accrual loans (2) |
182.69
|
%
|
|
144.54
|
%
|
|
117.90
|
%
|
|
|
|
|
(1)
|
Purchased credit impaired ("PCI") loans with an accretable yield are considered current and are not included in past due loan totals.
|
(2)
|
This ratio includes acquired loans that are recorded at fair value through an acquisition adjustment, which incorporates credit risk as of the acquisition date with no allowance for credit losses being established at that time. As the acquisition adjustment is accreted into income over future periods, an allowance for credit losses is established as necessary to reflect credit deterioration. A discussion of the allowance for acquired loan losses and the related acquisition adjustment is presented in the section titled "
Loan Portfolio and Credit Quality
."
|
(3)
|
This item is a non-GAAP financial measure. For a discussion of non-GAAP financial measures, see the section of this Item 2 titled "
Non-GAAP Financial Information and Reconciliations
."
|
|
Quarters Ended June 30,
|
|
|
Attribution of Change
in Net Interest Income
|
|||||||||||||||||||||||||||||
|
2018
|
|
|
2017
|
|
|
|||||||||||||||||||||||||||
|
Average
Balance
|
|
Interest
|
|
Yield/
Rate (%)
|
|
|
Average
Balance
|
|
Interest
|
|
Yield/
Rate (%)
|
|
|
Volume
|
|
Yield/
Rate
|
|
Total
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other interest-earning assets
|
$
|
147,996
|
|
|
$
|
519
|
|
|
1.41
|
|
|
$
|
262,206
|
|
|
$
|
686
|
|
|
1.05
|
|
|
$
|
(764
|
)
|
|
$
|
597
|
|
|
$
|
(167
|
)
|
Securities
(1)
|
2,165,091
|
|
|
13,322
|
|
|
2.46
|
|
|
1,983,341
|
|
|
11,482
|
|
|
2.32
|
|
|
957
|
|
|
883
|
|
|
1,840
|
|
|||||||
Federal Home Loan Bank
("FHLB") and Federal Reserve
Bank ("FRB") stock
|
80,038
|
|
|
864
|
|
|
4.32
|
|
|
57,073
|
|
|
441
|
|
|
3.09
|
|
|
213
|
|
|
210
|
|
|
423
|
|
|||||||
Loans
(1)(2)
|
10,788,285
|
|
|
128,422
|
|
|
4.77
|
|
|
10,064,119
|
|
|
115,949
|
|
|
4.62
|
|
|
8,532
|
|
|
3,941
|
|
|
12,473
|
|
|||||||
Total interest-earning assets
(1)(2)
|
13,181,410
|
|
|
143,127
|
|
|
4.35
|
|
|
12,366,739
|
|
|
128,558
|
|
|
4.17
|
|
|
8,938
|
|
|
5,631
|
|
|
14,569
|
|
|||||||
Cash and due from banks
|
197,025
|
|
|
|
|
|
|
|
188,886
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for loan losses
|
(99,469
|
)
|
|
|
|
|
|
|
(92,152
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other assets
|
1,326,749
|
|
|
|
|
|
|
|
1,497,370
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
14,605,715
|
|
|
|
|
|
|
|
$
|
13,960,843
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings deposits
|
$
|
2,060,066
|
|
|
373
|
|
|
0.07
|
|
|
$
|
2,072,343
|
|
|
394
|
|
|
0.08
|
|
|
(2
|
)
|
|
(19
|
)
|
|
(21
|
)
|
|||||
NOW accounts
|
2,065,530
|
|
|
1,472
|
|
|
0.29
|
|
|
2,010,152
|
|
|
663
|
|
|
0.13
|
|
|
18
|
|
|
791
|
|
|
809
|
|
|||||||
Money market deposits
|
1,759,313
|
|
|
1,073
|
|
|
0.24
|
|
|
1,942,672
|
|
|
648
|
|
|
0.13
|
|
|
(54
|
)
|
|
479
|
|
|
425
|
|
|||||||
Time deposits
|
1,871,666
|
|
|
5,114
|
|
|
1.10
|
|
|
1,538,845
|
|
|
2,024
|
|
|
0.53
|
|
|
517
|
|
|
2,573
|
|
|
3,090
|
|
|||||||
Borrowed funds
|
913,902
|
|
|
3,513
|
|
|
1.54
|
|
|
553,046
|
|
|
2,099
|
|
|
1.52
|
|
|
1,387
|
|
|
27
|
|
|
1,414
|
|
|||||||
Senior and subordinated debt
|
195,385
|
|
|
3,140
|
|
|
6.45
|
|
|
194,819
|
|
|
3,105
|
|
|
6.39
|
|
|
21
|
|
|
14
|
|
|
35
|
|
|||||||
Total interest-bearing
liabilities
|
8,865,862
|
|
|
14,685
|
|
|
0.66
|
|
|
8,311,877
|
|
|
8,933
|
|
|
0.43
|
|
|
1,887
|
|
|
3,865
|
|
|
5,752
|
|
|||||||
Demand deposits
|
3,621,645
|
|
|
|
|
|
|
|
3,538,049
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total funding sources
|
12,487,507
|
|
|
|
|
0.47
|
|
|
11,849,926
|
|
|
|
|
0.30
|
|
|
|
|
|
|
|
||||||||||||
Other liabilities
|
227,481
|
|
|
|
|
|
|
|
280,381
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Stockholders' equity
–
common
|
1,890,727
|
|
|
|
|
|
|
|
1,830,536
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities and
stockholders' equity
|
$
|
14,605,715
|
|
|
|
|
|
|
|
$
|
13,960,843
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tax-equivalent net interest
income/margin
(1)
|
|
|
128,442
|
|
|
3.91
|
|
|
|
|
119,625
|
|
|
3.88
|
|
|
$
|
7,051
|
|
|
$
|
1,766
|
|
|
$
|
8,817
|
|
||||||
Tax-equivalent adjustment
|
|
|
(1,039
|
)
|
|
|
|
|
|
|
(2,042
|
)
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income (GAAP)
|
|
|
$
|
127,403
|
|
|
|
|
|
|
|
$
|
117,583
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impact of acquired loan
accretion
(1)
|
|
|
$
|
4,445
|
|
|
0.14
|
|
|
|
|
$
|
8,757
|
|
|
0.28
|
|
|
|
|
|
|
|
||||||||||
Tax-equivalent net interest income/
margin, adjusted
(1)
|
|
|
$
|
123,997
|
|
|
3.77
|
|
|
|
|
$
|
110,868
|
|
|
3.60
|
|
|
|
|
|
|
|
(1)
|
Interest income and yields on tax-exempt securities and loans are presented on a tax-equivalent basis, assuming the applicable federal income tax rate for each period presented. As a result, interest income and yields on tax-exempt securities and loans subsequent to December 31, 2017 are presented at the current federal income tax rate of 21% and the prior period is presented using the federal income tax rate applicable at that time of 35%. The corresponding income tax impact related to tax-exempt items is recorded in income tax expense. These adjustments have no impact on net income. For a discussion of non-GAAP financial measures, see the section of this Item 2 titled "
Non-GAAP Financial Information and Reconciliations
."
|
(2)
|
Non-accrual loans, which totaled
$53.5 million
as of
June 30, 2018
and
$79.2 million
as of
June 30, 2017
, are included in loans for purposes of this analysis. Additional detail regarding non-accrual loans is presented in the following section of this Item 2 titled "
Non-performing Assets and Corporate Performing Potential Problem Loans
."
|
|
Six Months Ended June 30,
|
|
|
Attribution of Change
in Net Interest Income |
|||||||||||||||||||||||||||||
|
2018
|
|
|
2017
|
|
|
|||||||||||||||||||||||||||
|
Average
Balance |
|
Interest
|
|
Yield/
Rate (%) |
|
|
Average
Balance |
|
Interest
|
|
Yield/
Rate (%) |
|
|
Volume
|
|
Yield/
Rate |
|
Total
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other interest-earning assets
|
$
|
130,166
|
|
|
$
|
942
|
|
|
1.46
|
|
|
$
|
239,189
|
|
|
$
|
1,128
|
|
|
0.95
|
|
|
$
|
(789
|
)
|
|
$
|
603
|
|
|
$
|
(186
|
)
|
Securities
(1)
|
2,114,439
|
|
|
25,464
|
|
|
2.41
|
|
|
2,002,144
|
|
|
23,016
|
|
|
2.30
|
|
|
1,128
|
|
|
1,320
|
|
|
2,448
|
|
|||||||
FHLB and FRB stock
|
78,469
|
|
|
1,302
|
|
|
3.32
|
|
|
55,654
|
|
|
809
|
|
|
2.91
|
|
|
367
|
|
|
126
|
|
|
493
|
|
|||||||
Loans
(1)(2)
|
10,644,581
|
|
|
247,739
|
|
|
4.69
|
|
|
9,992,713
|
|
|
229,358
|
|
|
4.63
|
|
|
15,134
|
|
|
3,247
|
|
|
18,381
|
|
|||||||
Total interest-earning assets
(1)(2)
|
12,967,655
|
|
|
275,447
|
|
|
4.28
|
|
|
12,289,700
|
|
|
254,311
|
|
|
4.17
|
|
|
15,840
|
|
|
5,296
|
|
|
21,136
|
|
|||||||
Cash and due from banks
|
189,452
|
|
|
|
|
|
|
|
182,952
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for loan losses
|
(99,352
|
)
|
|
|
|
|
|
|
(90,617
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other assets
|
1,339,785
|
|
|
|
|
|
|
|
1,435,744
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
14,397,540
|
|
|
|
|
|
|
|
$
|
13,817,779
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings deposits
|
$
|
2,037,995
|
|
|
742
|
|
|
0.07
|
|
|
$
|
2,051,105
|
|
|
794
|
|
|
0.08
|
|
|
(5
|
)
|
|
(47
|
)
|
|
(52
|
)
|
|||||
NOW accounts
|
2,029,303
|
|
|
2,520
|
|
|
0.25
|
|
|
1,963,742
|
|
|
1,141
|
|
|
0.12
|
|
|
39
|
|
|
1,340
|
|
|
1,379
|
|
|||||||
Money market deposits
|
1,786,534
|
|
|
1,897
|
|
|
0.21
|
|
|
1,916,831
|
|
|
1,267
|
|
|
0.13
|
|
|
(80
|
)
|
|
710
|
|
|
630
|
|
|||||||
Time deposits
|
1,803,787
|
|
|
9,052
|
|
|
1.01
|
|
|
1,527,285
|
|
|
3,736
|
|
|
0.49
|
|
|
781
|
|
|
4,535
|
|
|
5,316
|
|
|||||||
Borrowed funds
|
886,253
|
|
|
6,992
|
|
|
1.59
|
|
|
643,068
|
|
|
4,293
|
|
|
1.35
|
|
|
1,823
|
|
|
876
|
|
|
2,699
|
|
|||||||
Senior and subordinated debt
|
195,314
|
|
|
6,264
|
|
|
6.47
|
|
|
194,749
|
|
|
6,204
|
|
|
6.43
|
|
|
18
|
|
|
42
|
|
|
60
|
|
|||||||
Total interest-bearing
liabilities |
8,739,186
|
|
|
27,467
|
|
|
0.63
|
|
|
8,296,780
|
|
|
17,435
|
|
|
0.42
|
|
|
2,576
|
|
|
7,456
|
|
|
10,032
|
|
|||||||
Demand deposits
|
3,544,666
|
|
|
|
|
|
|
|
3,447,365
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total funding sources
|
12,283,852
|
|
|
|
|
0.45
|
|
|
11,744,145
|
|
|
|
|
0.30
|
|
|
|
|
|
|
|
||||||||||||
Other liabilities
|
231,567
|
|
|
|
|
|
|
|
276,412
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Stockholders' equity
–
common
|
1,882,121
|
|
|
|
|
|
|
|
1,797,222
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities and
stockholders' equity |
$
|
14,397,540
|
|
|
|
|
|
|
|
$
|
13,817,779
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tax-equivalent net interest
income/margin (1) |
|
|
247,980
|
|
|
3.85
|
|
|
|
|
236,876
|
|
|
3.88
|
|
|
$
|
13,264
|
|
|
$
|
(2,160
|
)
|
|
$
|
11,104
|
|
||||||
Tax-equivalent adjustment
|
|
|
(2,014
|
)
|
|
|
|
|
|
|
(4,096
|
)
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income (GAAP)
|
|
|
$
|
245,966
|
|
|
|
|
|
|
|
$
|
232,780
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impact of acquired loan
accretion (1) |
|
|
$
|
9,557
|
|
|
0.15
|
|
|
|
|
$
|
20,102
|
|
|
0.33
|
|
|
|
|
|
|
|
||||||||||
Tax-equivalent net interest income/
margin, adjusted
(1)
|
|
|
$
|
238,423
|
|
|
3.70
|
|
|
|
|
$
|
216,774
|
|
|
3.55
|
|
|
|
|
|
|
|
(1)
|
Interest income and yields on tax-exempt securities and loans are presented on a tax-equivalent basis, assuming the applicable federal income tax rate for each period presented. As a result, interest income and yields on tax-exempt securities and loans subsequent to December 31, 2017 are presented at the current federal income tax rate of 21% and the prior period is presented using the federal income tax rate applicable at that time of 35%. The corresponding income tax impact related to tax-exempt items is recorded in income tax expense. These adjustments have no impact on net income. For a discussion of non-GAAP financial measures, see the section of this Item 2 titled "
Non-GAAP Financial Information and Reconciliations
."
|
(2)
|
Non-accrual loans, which totaled
$53.5 million
as of
June 30, 2018
and
$79.2 million
as of
June 30, 2017
, are included in loans for purposes of this analysis. Additional detail regarding non-accrual loans is presented in the following section of this Item 2 titled "
Non-performing Assets and Corporate Performing Potential Problem Loans
."
|
|
|
Quarters Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||
|
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
Service charges on deposit accounts
|
|
$
|
12,058
|
|
|
$
|
12,153
|
|
|
(0.8
|
)
|
|
$
|
23,710
|
|
|
$
|
23,518
|
|
|
0.8
|
|
Wealth management fees
|
|
10,981
|
|
|
10,525
|
|
|
4.3
|
|
|
21,939
|
|
|
20,185
|
|
|
8.7
|
|
||||
Card-based fees, net
(1)(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Card-based fees
|
|
6,270
|
|
|
8,832
|
|
|
(29.0
|
)
|
|
11,962
|
|
|
16,948
|
|
|
(29.4
|
)
|
||||
Cardholder expenses
|
|
(1,876
|
)
|
|
—
|
|
|
—
|
|
|
(3,635
|
)
|
|
—
|
|
|
—
|
|
||||
Card-based fees, net
|
|
4,394
|
|
|
8,832
|
|
|
(50.2
|
)
|
|
8,327
|
|
|
16,948
|
|
|
(50.9
|
)
|
||||
Capital market products income
|
|
2,819
|
|
|
2,217
|
|
|
27.2
|
|
|
4,377
|
|
|
3,593
|
|
|
21.8
|
|
||||
Mortgage banking income
|
|
1,736
|
|
|
1,645
|
|
|
5.5
|
|
|
4,133
|
|
|
3,533
|
|
|
17.0
|
|
||||
Merchant servicing fees, net
(1)(3)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Merchant servicing fees
|
|
2,553
|
|
|
3,197
|
|
|
(20.1
|
)
|
|
4,790
|
|
|
6,332
|
|
|
(24.4
|
)
|
||||
Merchant card expenses
|
|
(2,170
|
)
|
|
—
|
|
|
—
|
|
|
(4,077
|
)
|
|
—
|
|
|
—
|
|
||||
Merchant servicing fees, net
|
|
383
|
|
|
3,197
|
|
|
(88.0
|
)
|
|
713
|
|
|
6,332
|
|
|
(88.7
|
)
|
||||
Other service charges, commissions, and
fees
|
|
2,455
|
|
|
2,659
|
|
|
(7.7
|
)
|
|
4,673
|
|
|
4,966
|
|
|
(5.9
|
)
|
||||
Total fee-based revenues
|
|
34,826
|
|
|
41,228
|
|
|
(15.5
|
)
|
|
67,872
|
|
|
79,075
|
|
|
(14.2
|
)
|
||||
Other income
(4)
|
|
2,121
|
|
|
3,433
|
|
|
(38.2
|
)
|
|
4,592
|
|
|
5,537
|
|
|
(17.1
|
)
|
||||
Net securities gains
|
|
—
|
|
|
284
|
|
|
(100.0
|
)
|
|
—
|
|
|
284
|
|
|
(100.0
|
)
|
||||
Total noninterest income
|
|
$
|
36,947
|
|
|
$
|
44,945
|
|
|
(17.8
|
)
|
|
$
|
72,464
|
|
|
$
|
84,896
|
|
|
(14.6
|
)
|
|
|
Quarters Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||
|
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
Total noninterest income
|
|
$
|
36,947
|
|
|
$
|
44,945
|
|
|
(17.8
|
)
|
|
$
|
72,464
|
|
|
$
|
84,896
|
|
|
(14.6
|
)
|
Accounting reclassification
(1)
|
|
4,046
|
|
|
—
|
|
|
—
|
|
|
7,712
|
|
|
—
|
|
|
—
|
|
||||
Durbin Amendment
(6)
|
|
—
|
|
|
(3,100
|
)
|
|
(100.0
|
)
|
|
—
|
|
|
(6,000
|
)
|
|
(100.0
|
)
|
||||
Net securities gains
|
|
—
|
|
|
(284
|
)
|
|
(100.0
|
)
|
|
—
|
|
|
(284
|
)
|
|
(100.0
|
)
|
||||
Total noninterest income, adjusted
(5)
|
|
$
|
40,993
|
|
|
$
|
41,561
|
|
|
(1.4
|
)
|
|
$
|
80,176
|
|
|
$
|
78,612
|
|
|
2.0
|
|
(1)
|
As a result of accounting guidance adopted in the first quarter of 2018 (the "accounting reclassification"), certain noninterest income line items and the related noninterest expense line items that are presented on a gross basis for prior year periods are presented on a net basis in noninterest income for current year periods. For further discussion of this guidance, see Note 2 of "Notes to the Condensed Consolidated Financial Statements" in Part I, Item 1 of this Form 10-Q.
|
(2)
|
Card-based fees, net consists of debit and credit card interchange fees for processing transactions, various fees on both consumer and non-customer automated teller machine ("ATM") and point-of-sale transactions processed through the ATM and point-of-sale networks, as well as the related cardholder expense.
|
(3)
|
Merchant servicing fees, net are included in other service charges, commissions, and fees in the Condensed Consolidated Statements of Income.
|
(4)
|
Other income consists of various items, including BOLI income, safe deposit box rentals, miscellaneous recoveries, and gains on the sales of various assets.
|
(5)
|
See the "Non-GAAP Financial Information" section presented later in this release for a discussion of this non-GAAP financial measure.
|
(6)
|
Amount represents the impact of the Durbin Amendment, which became effective for the Company in the third quarter of 2017.
|
|
|
Quarters Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||
|
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
Salaries and employee benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and wages
|
|
$
|
46,256
|
|
|
$
|
44,194
|
|
|
4.7
|
|
|
$
|
92,086
|
|
|
$
|
89,084
|
|
|
3.4
|
|
Retirement and other employee benefits
|
|
11,676
|
|
|
10,381
|
|
|
12.5
|
|
|
22,633
|
|
|
21,263
|
|
|
6.4
|
|
||||
Total salaries and employee benefits
|
|
57,932
|
|
|
54,575
|
|
|
6.2
|
|
|
114,719
|
|
|
110,347
|
|
|
4.0
|
|
||||
Net occupancy and equipment expense
|
|
13,651
|
|
|
12,485
|
|
|
9.3
|
|
|
27,424
|
|
|
24,810
|
|
|
10.5
|
|
||||
Professional services
|
|
8,298
|
|
|
9,112
|
|
|
(8.9
|
)
|
|
15,878
|
|
|
17,575
|
|
|
(9.7
|
)
|
||||
Technology and related costs
|
|
4,837
|
|
|
4,485
|
|
|
7.8
|
|
|
9,608
|
|
|
8,918
|
|
|
7.7
|
|
||||
Advertising and promotions
|
|
2,061
|
|
|
1,693
|
|
|
21.7
|
|
|
3,711
|
|
|
2,759
|
|
|
34.5
|
|
||||
Net OREO expense
|
|
(256
|
)
|
|
1,631
|
|
|
(115.7
|
)
|
|
812
|
|
|
3,331
|
|
|
(75.6
|
)
|
||||
Other expenses
|
|
11,878
|
|
|
10,282
|
|
|
15.5
|
|
|
21,831
|
|
|
20,251
|
|
|
7.8
|
|
||||
Delivering Excellence implementation
costs
|
|
15,015
|
|
|
—
|
|
|
—
|
|
|
15,015
|
|
|
—
|
|
|
—
|
|
||||
Acquisition and integration related
expenses
|
|
—
|
|
|
1,174
|
|
|
(100.0
|
)
|
|
—
|
|
|
19,739
|
|
|
(100.0
|
)
|
||||
Merchant card expenses
(1)
|
|
—
|
|
|
2,632
|
|
|
(100.0
|
)
|
|
—
|
|
|
5,217
|
|
|
(100.0
|
)
|
||||
Cardholder expenses
(1)
|
|
—
|
|
|
1,682
|
|
|
(100.0
|
)
|
|
—
|
|
|
3,446
|
|
|
(100.0
|
)
|
||||
Total noninterest expense
(1)
|
|
$
|
113,416
|
|
|
$
|
99,751
|
|
|
13.7
|
|
|
$
|
208,998
|
|
|
$
|
216,393
|
|
|
(3.4
|
)
|
|
|
Quarters Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||
|
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
Total noninterest expense
|
|
$
|
113,416
|
|
|
$
|
99,751
|
|
|
13.7
|
|
|
$
|
208,998
|
|
|
$
|
216,393
|
|
|
(3.4
|
)
|
Delivering Excellence implementation
costs
|
|
(15,015
|
)
|
|
—
|
|
|
—
|
|
|
(15,015
|
)
|
|
—
|
|
|
—
|
|
||||
Accounting reclassification
(1)
|
|
4,046
|
|
|
—
|
|
|
—
|
|
|
7,712
|
|
|
—
|
|
|
—
|
|
||||
Acquisition and integration related
expenses
|
|
—
|
|
|
(1,174
|
)
|
|
(100.0
|
)
|
|
—
|
|
|
(19,739
|
)
|
|
(100.0
|
)
|
||||
Total noninterest expense, adjusted
(2)
|
|
$
|
102,447
|
|
|
$
|
98,577
|
|
|
3.9
|
|
|
$
|
201,695
|
|
|
$
|
196,654
|
|
|
2.6
|
|
(1)
|
As a result of accounting guidance adopted in the first quarter of 2018, certain noninterest income line items and the related noninterest expense line items that are presented on a gross basis for prior year periods are presented on a net basis in noninterest income for current year periods. For further discussion of this guidance, see Note 2 of "Notes to the Condensed Consolidated Financial Statements" in Part I, Item 1 of this Form 10-Q.
|
(2)
|
See the "Non-GAAP Financial Information" section presented later in this release for a discussion of this non-GAAP financial measure.
|
|
|
Quarters Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Income before income tax expense
|
|
$
|
39,320
|
|
|
$
|
54,538
|
|
|
$
|
82,637
|
|
|
$
|
88,126
|
|
Income tax expense:
|
|
|
|
|
|
|
|
|
||||||||
Federal income tax expense
|
|
$
|
7,623
|
|
|
$
|
16,159
|
|
|
$
|
14,769
|
|
|
$
|
25,053
|
|
State income tax expense
|
|
2,097
|
|
|
3,429
|
|
|
4,758
|
|
|
5,268
|
|
||||
Total income tax expense
|
|
$
|
9,720
|
|
|
$
|
19,588
|
|
|
$
|
19,527
|
|
|
$
|
30,321
|
|
Effective income tax rate
|
|
24.7
|
%
|
|
35.9
|
%
|
|
23.6
|
%
|
|
34.4
|
%
|
|
|
As of June 30, 2018
|
|
As of December 31, 2017
|
||||||||||||||||||||||||
|
|
Amortized
Cost
|
|
Net
Unrealized
Gains
(Losses)
|
|
Fair Value
|
|
% of Total
|
|
Amortized
Cost
|
|
Net
Unrealized
Gains
(Losses)
|
|
Fair Value
|
|
% of Total
|
||||||||||||
Securities Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. treasury securities
|
|
$
|
49,455
|
|
|
$
|
(297
|
)
|
|
$
|
49,158
|
|
|
2.3
|
|
$
|
46,529
|
|
|
$
|
(184
|
)
|
|
$
|
46,345
|
|
|
2.5
|
U.S. agency securities
|
|
150,443
|
|
|
(2,159
|
)
|
|
148,284
|
|
|
6.9
|
|
157,636
|
|
|
(789
|
)
|
|
156,847
|
|
|
8.3
|
||||||
Collateralized mortgage
obligations ("CMOs")
|
|
1,270,304
|
|
|
(37,874
|
)
|
|
1,232,430
|
|
|
57.5
|
|
1,113,019
|
|
|
(17,833
|
)
|
|
1,095,186
|
|
|
58.1
|
||||||
Other mortgage-backed
securities ("MBSs")
|
|
450,512
|
|
|
(12,876
|
)
|
|
437,636
|
|
|
20.4
|
|
373,676
|
|
|
(4,133
|
)
|
|
369,543
|
|
|
19.6
|
||||||
Municipal securities
|
|
222,034
|
|
|
(3,689
|
)
|
|
218,345
|
|
|
10.2
|
|
209,558
|
|
|
(567
|
)
|
|
208,991
|
|
|
11.1
|
||||||
Corporate debt securities
|
|
57,867
|
|
|
(855
|
)
|
|
57,012
|
|
|
2.7
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
||||||
Equity securities
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
7,408
|
|
|
(111
|
)
|
|
7,297
|
|
|
0.4
|
||||||
Total securities
available-for-sale
|
|
$
|
2,200,615
|
|
|
$
|
(57,750
|
)
|
|
$
|
2,142,865
|
|
|
100.0
|
|
$
|
1,907,826
|
|
|
$
|
(23,617
|
)
|
|
$
|
1,884,209
|
|
|
100.0
|
Securities Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Municipal securities
|
|
$
|
13,042
|
|
|
$
|
(2,124
|
)
|
|
$
|
10,918
|
|
|
|
|
$
|
13,760
|
|
|
$
|
(1,747
|
)
|
|
$
|
12,013
|
|
|
|
Equity Securities
(1)
|
|
|
|
|
|
$
|
28,441
|
|
|
|
|
|
|
|
|
$
|
—
|
|
|
|
||||||||
Trading Securities
(1)
|
|
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
$
|
20,447
|
|
|
|
(1)
|
As a result of accounting guidance adopted in the first quarter of 2018, equity securities are no longer presented within trading securities or securities available-for-sale and are now presented within equity securities in the Consolidated Statements of Financial Condition for the current period. For further discussion of this guidance, see Note 2 of "Notes to the Condensed Consolidated Financial Statements" in Part I, Item 1 of this Form 10-Q.
|
|
As of June 30, 2018
|
|
As of December 31, 2017
|
||||||||||||||
|
Effective
|
|
Average
|
|
Yield to
|
|
Effective
|
|
Average
|
|
Yield to
|
||||||
|
Duration
(1)
|
|
Life
(2)
|
|
Maturity
(3)
|
|
Duration
(1)
|
|
Life
(2)
|
|
Maturity
(3)
|
||||||
Securities Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. treasury securities
|
1.04
|
%
|
|
1.07
|
|
|
1.74
|
%
|
|
1.01
|
%
|
|
1.03
|
|
|
1.30
|
%
|
U.S. agency securities
|
1.81
|
%
|
|
3.34
|
|
|
2.09
|
%
|
|
1.80
|
%
|
|
3.22
|
|
|
1.74
|
%
|
CMOs
|
3.91
|
%
|
|
4.86
|
|
|
2.57
|
%
|
|
3.36
|
%
|
|
4.51
|
|
|
2.35
|
%
|
MBSs
|
4.31
|
%
|
|
5.68
|
|
|
2.56
|
%
|
|
3.77
|
%
|
|
5.29
|
|
|
2.30
|
%
|
Municipal securities
|
4.78
|
%
|
|
5.15
|
|
|
2.59
|
%
|
|
4.47
|
%
|
|
4.87
|
|
|
3.04
|
%
|
Corporate debt securities
|
0.03
|
%
|
|
7.59
|
|
|
3.36
|
%
|
|
N/M
|
|
|
N/M
|
|
|
N/M
|
|
Total securities available-for-sale
|
3.77
|
%
|
|
4.94
|
|
|
2.54
|
%
|
|
3.38
|
%
|
|
4.51
|
|
|
2.34
|
%
|
Securities Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Municipal securities
|
5.09
|
%
|
|
6.98
|
|
|
3.61
|
%
|
|
5.33
|
%
|
|
7.15
|
|
|
4.55
|
%
|
(1)
|
The effective duration represents the estimated percentage change in the fair value of the securities portfolio given a 100 basis point increase or decrease in interest rates. This measure is used to evaluate the portfolio's price volatility at a single point in time and is not intended to be a precise predictor of future fair values since those values will be influenced by a number of factors.
|
(2)
|
Average life is presented in years and represents the weighted-average time to receive half of all future cash flows using the dollar amount of principal paydowns, including estimated principal prepayments, as the weighting factor.
|
(3)
|
Yields on municipal securities are reflected on a tax-equivalent basis, assuming the applicable federal income tax rate for each period presented.
|
|
|
As of
June 30, 2018 |
|
% of
Total Loans
|
|
As of
December 31, 2017
|
|
% of
Total Loans |
|
% Change
|
|||||
Commercial and industrial
|
|
$
|
3,844,067
|
|
|
35.3
|
|
$
|
3,529,914
|
|
|
33.8
|
|
8.9
|
|
Agricultural
|
|
433,175
|
|
|
4.0
|
|
430,886
|
|
|
4.1
|
|
0.5
|
|
||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|||||
Office, retail, and industrial
|
|
1,834,918
|
|
|
16.8
|
|
1,979,820
|
|
|
19.0
|
|
(7.3
|
)
|
||
Multi-family
|
|
703,091
|
|
|
6.5
|
|
675,463
|
|
|
6.5
|
|
4.1
|
|
||
Construction
|
|
633,601
|
|
|
5.8
|
|
539,820
|
|
|
5.2
|
|
17.4
|
|
||
Other commercial real estate
|
|
1,337,396
|
|
|
12.3
|
|
1,358,515
|
|
|
13.0
|
|
(1.6
|
)
|
||
Total commercial real estate
|
|
4,509,006
|
|
|
41.4
|
|
4,553,618
|
|
|
43.7
|
|
(1.0
|
)
|
||
Total corporate loans
|
|
8,786,248
|
|
|
80.7
|
|
8,514,418
|
|
|
81.6
|
|
3.2
|
|
||
Home equity
|
|
847,903
|
|
|
7.8
|
|
827,055
|
|
|
7.9
|
|
2.5
|
|
||
1-4 family mortgages
|
|
880,181
|
|
|
8.1
|
|
774,357
|
|
|
7.4
|
|
13.7
|
|
||
Installment
|
|
377,233
|
|
|
3.4
|
|
321,982
|
|
|
3.1
|
|
17.2
|
|
||
Total consumer loans
|
|
2,105,317
|
|
|
19.3
|
|
1,923,394
|
|
|
18.4
|
|
9.5
|
|
||
Total loans
|
|
$
|
10,891,565
|
|
|
100.0
|
|
$
|
10,437,812
|
|
|
100.0
|
|
4.3
|
|
|
|
As of
June 30, 2018 |
|
% of
Total |
|
As of
December 31, 2017 |
|
% of
Total |
||||
Office, retail, and industrial:
|
|
|
|
|
|
|
|
|
||||
Office
|
|
$
|
747,986
|
|
|
16.6
|
|
$
|
844,413
|
|
|
18.5
|
Retail
|
|
466,480
|
|
|
10.3
|
|
471,781
|
|
|
10.4
|
||
Industrial
|
|
620,452
|
|
|
13.8
|
|
663,626
|
|
|
14.6
|
||
Total office, retail, and industrial
|
|
1,834,918
|
|
|
40.7
|
|
1,979,820
|
|
|
43.5
|
||
Multi-family
|
|
703,091
|
|
|
15.6
|
|
675,463
|
|
|
14.8
|
||
Construction
|
|
633,601
|
|
|
14.0
|
|
539,820
|
|
|
11.8
|
||
Other commercial real estate:
|
|
|
|
|
|
|
|
|
||||
Multi-use properties
|
|
327,210
|
|
|
7.3
|
|
330,926
|
|
|
7.3
|
||
Rental properties
|
|
181,478
|
|
|
4.0
|
|
197,579
|
|
|
4.3
|
||
Warehouses and storage
|
|
163,252
|
|
|
3.6
|
|
172,505
|
|
|
3.8
|
||
Hotels
|
|
128,673
|
|
|
2.8
|
|
97,016
|
|
|
2.1
|
||
Restaurants
|
|
115,908
|
|
|
2.6
|
|
112,547
|
|
|
2.5
|
||
Service stations and truck stops
|
|
102,520
|
|
|
2.3
|
|
107,834
|
|
|
2.4
|
||
Recreational
|
|
81,090
|
|
|
1.8
|
|
87,986
|
|
|
1.9
|
||
Automobile dealers
|
|
35,737
|
|
|
0.8
|
|
39,020
|
|
|
0.9
|
||
Other
|
|
201,528
|
|
|
4.5
|
|
213,102
|
|
|
4.7
|
||
Total other commercial real estate
|
|
1,337,396
|
|
|
29.7
|
|
1,358,515
|
|
|
29.9
|
||
Total commercial real estate
|
|
$
|
4,509,006
|
|
|
100.0
|
|
$
|
4,553,618
|
|
|
100.0
|
|
Accruing
|
|
|
|
|
||||||||||||||||||
|
PCI
(1)
|
|
Current
|
|
30-89 Days
Past Due
|
|
90 Days
Past Due
|
|
Non-accrual
(2)
|
|
Total
Loans
|
||||||||||||
As of June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
2,234
|
|
|
$
|
3,799,454
|
|
|
$
|
18,163
|
|
|
$
|
1,544
|
|
|
$
|
22,672
|
|
|
$
|
3,844,067
|
|
Agricultural
|
2,481
|
|
|
424,807
|
|
|
1,477
|
|
|
1,418
|
|
|
2,992
|
|
|
433,175
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Office, retail, and industrial
|
11,947
|
|
|
1,807,196
|
|
|
5,366
|
|
|
1,402
|
|
|
9,007
|
|
|
1,834,918
|
|
||||||
Multi-family
|
13,014
|
|
|
683,906
|
|
|
351
|
|
|
2,269
|
|
|
3,551
|
|
|
703,091
|
|
||||||
Construction
|
4,888
|
|
|
628,155
|
|
|
107
|
|
|
243
|
|
|
208
|
|
|
633,601
|
|
||||||
Other commercial real estate
|
56,805
|
|
|
1,268,396
|
|
|
6,316
|
|
|
591
|
|
|
5,288
|
|
|
1,337,396
|
|
||||||
Total commercial real estate
|
86,654
|
|
|
4,387,653
|
|
|
12,140
|
|
|
4,505
|
|
|
18,054
|
|
|
4,509,006
|
|
||||||
Total corporate loans
|
91,369
|
|
|
8,611,914
|
|
|
31,780
|
|
|
7,467
|
|
|
43,718
|
|
|
8,786,248
|
|
||||||
Home equity
|
1,947
|
|
|
837,412
|
|
|
3,145
|
|
|
—
|
|
|
5,399
|
|
|
847,903
|
|
||||||
1-4 family mortgages
|
17,296
|
|
|
857,016
|
|
|
1,470
|
|
|
41
|
|
|
4,358
|
|
|
880,181
|
|
||||||
Installment
|
996
|
|
|
373,015
|
|
|
2,776
|
|
|
446
|
|
|
—
|
|
|
377,233
|
|
||||||
Total consumer loans
|
20,239
|
|
|
2,067,443
|
|
|
7,391
|
|
|
487
|
|
|
9,757
|
|
|
2,105,317
|
|
||||||
Total loans
|
$
|
111,608
|
|
|
$
|
10,679,357
|
|
|
$
|
39,171
|
|
|
$
|
7,954
|
|
|
$
|
53,475
|
|
|
$
|
10,891,565
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
5,450
|
|
|
$
|
3,458,049
|
|
|
$
|
24,005
|
|
|
$
|
1,830
|
|
|
$
|
40,580
|
|
|
$
|
3,529,914
|
|
Agricultural
|
7,203
|
|
|
423,007
|
|
|
280
|
|
|
177
|
|
|
219
|
|
|
430,886
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Office, retail, and industrial
|
14,575
|
|
|
1,950,564
|
|
|
2,776
|
|
|
345
|
|
|
11,560
|
|
|
1,979,820
|
|
||||||
Multi-family
|
14,071
|
|
|
657,878
|
|
|
3,117
|
|
|
20
|
|
|
377
|
|
|
675,463
|
|
||||||
Construction
|
8,778
|
|
|
530,264
|
|
|
198
|
|
|
371
|
|
|
209
|
|
|
539,820
|
|
||||||
Other commercial real estate
|
64,675
|
|
|
1,287,522
|
|
|
2,380
|
|
|
317
|
|
|
3,621
|
|
|
1,358,515
|
|
||||||
Total commercial real estate
|
102,099
|
|
|
4,426,228
|
|
|
8,471
|
|
|
1,053
|
|
|
15,767
|
|
|
4,553,618
|
|
||||||
Total corporate loans
|
114,752
|
|
|
8,307,284
|
|
|
32,756
|
|
|
3,060
|
|
|
56,566
|
|
|
8,514,418
|
|
||||||
Home equity
|
2,745
|
|
|
815,014
|
|
|
3,252
|
|
|
98
|
|
|
5,946
|
|
|
827,055
|
|
||||||
1-4 family mortgages
|
18,080
|
|
|
750,555
|
|
|
1,310
|
|
|
—
|
|
|
4,412
|
|
|
774,357
|
|
||||||
Installment
|
1,113
|
|
|
318,065
|
|
|
2,407
|
|
|
397
|
|
|
—
|
|
|
321,982
|
|
||||||
Total consumer loans
|
21,938
|
|
|
1,883,634
|
|
|
6,969
|
|
|
495
|
|
|
10,358
|
|
|
1,923,394
|
|
||||||
Total loans
|
$
|
136,690
|
|
|
$
|
10,190,918
|
|
|
$
|
39,725
|
|
|
$
|
3,555
|
|
|
$
|
66,924
|
|
|
$
|
10,437,812
|
|
(1)
|
PCI loans with an accretable yield are considered current.
|
(2)
|
Includes PCI loans of
$748,000
and $763,000 as of
June 30, 2018
and
December 31, 2017
, respectively, which no longer have an accretable yield as estimates of expected future cash flows have decreased since the acquisition date due to credit deterioration.
|
|
As of
|
||||||||||||||||||
|
June 30,
2018 |
|
March 31,
2018 |
|
December 31,
2017 |
|
September 30,
2017 |
|
June 30,
2017 |
||||||||||
Non-accrual loans
|
$
|
53,475
|
|
|
$
|
75,015
|
|
|
$
|
66,924
|
|
|
$
|
65,176
|
|
|
$
|
79,196
|
|
90 days or more past due loans, still
accruing interest (1) |
7,954
|
|
|
4,633
|
|
|
3,555
|
|
|
2,839
|
|
|
2,059
|
|
|||||
Total non-performing loans
|
61,429
|
|
|
79,648
|
|
|
70,479
|
|
|
68,015
|
|
|
81,255
|
|
|||||
Accruing TDRs
|
1,760
|
|
|
1,778
|
|
|
1,796
|
|
|
1,813
|
|
|
2,029
|
|
|||||
OREO
|
12,892
|
|
|
17,472
|
|
|
20,851
|
|
|
19,873
|
|
|
26,493
|
|
|||||
Total non-performing assets
|
$
|
76,081
|
|
|
$
|
98,898
|
|
|
$
|
93,126
|
|
|
$
|
89,701
|
|
|
$
|
109,777
|
|
30-89 days past due loans
(1)
|
$
|
39,171
|
|
|
$
|
42,573
|
|
|
$
|
39,725
|
|
|
$
|
28,868
|
|
|
$
|
19,081
|
|
Non-accrual loans to total loans
|
0.49
|
%
|
|
0.70
|
%
|
|
0.64
|
%
|
|
0.63
|
%
|
|
0.77
|
%
|
|||||
Non-performing loans to total loans
|
0.56
|
%
|
|
0.75
|
%
|
|
0.68
|
%
|
|
0.65
|
%
|
|
0.79
|
%
|
|||||
Non-performing assets to total loans plus
OREO
|
0.70
|
%
|
|
0.92
|
%
|
|
0.89
|
%
|
|
0.86
|
%
|
|
1.07
|
%
|
(1)
|
PCI loans with an accretable yield are considered current and are not included in past due loan totals.
|
|
As of
|
|||||||||||||||||||
|
June 30, 2018
|
|
December 31, 2017
|
|
June 30, 2017
|
|||||||||||||||
|
Number
of Loans
|
|
Amount
|
|
Number
of Loans
|
|
Amount
|
|
Number
of Loans
|
|
Amount
|
|||||||||
Commercial and industrial
|
6
|
|
|
$
|
7,100
|
|
|
11
|
|
|
$
|
19,223
|
|
|
4
|
|
|
$
|
1,164
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Office, retail, and industrial
|
2
|
|
|
501
|
|
|
4
|
|
|
4,236
|
|
|
2
|
|
|
860
|
|
|||
Multi-family
|
2
|
|
|
566
|
|
|
3
|
|
|
723
|
|
|
3
|
|
|
737
|
|
|||
Other commercial real estate
|
1
|
|
|
187
|
|
|
1
|
|
|
192
|
|
|
1
|
|
|
197
|
|
|||
Total commercial real estate
|
5
|
|
|
1,254
|
|
|
8
|
|
|
5,151
|
|
|
6
|
|
|
1,794
|
|
|||
Total corporate loans
|
11
|
|
|
8,354
|
|
|
19
|
|
|
24,374
|
|
|
10
|
|
|
2,958
|
|
|||
Home equity
|
13
|
|
|
554
|
|
|
15
|
|
|
824
|
|
|
16
|
|
|
939
|
|
|||
1-4 family mortgages
|
11
|
|
|
1,090
|
|
|
11
|
|
|
1,131
|
|
|
11
|
|
|
1,168
|
|
|||
Total consumer loans
|
24
|
|
|
1,644
|
|
|
26
|
|
|
1,955
|
|
|
27
|
|
|
2,107
|
|
|||
Total TDRs
|
35
|
|
|
$
|
9,998
|
|
|
45
|
|
|
$
|
26,329
|
|
|
37
|
|
|
$
|
5,065
|
|
Accruing TDRs
|
13
|
|
|
$
|
1,760
|
|
|
14
|
|
|
$
|
1,796
|
|
|
16
|
|
|
$
|
2,029
|
|
Non-accrual TDRs
|
22
|
|
|
8,238
|
|
|
31
|
|
|
24,533
|
|
|
21
|
|
|
3,036
|
|
|||
Total TDRs
|
35
|
|
|
$
|
9,998
|
|
|
45
|
|
|
$
|
26,329
|
|
|
37
|
|
|
$
|
5,065
|
|
Year-to-date charge-offs on TDRs
|
|
|
$
|
3,672
|
|
|
|
|
$
|
6,345
|
|
|
|
|
$
|
113
|
|
|||
Specific reserves related to TDRs
|
|
|
625
|
|
|
|
|
1,977
|
|
|
|
|
—
|
|
|
As of June 30, 2018
|
|
As of December 31, 2017
|
||||||||||||||||||||
|
Special
Mention
(1)
|
|
Substandard
(2)
|
|
Total
(3)
|
|
Special
Mention
(1)
|
|
Substandard
(2)
|
|
Total
(3)
|
||||||||||||
Commercial and industrial
|
$
|
122,881
|
|
|
$
|
49,633
|
|
|
$
|
172,514
|
|
|
$
|
70,863
|
|
|
$
|
30,074
|
|
|
$
|
100,937
|
|
Agricultural
|
8,474
|
|
|
6,666
|
|
|
15,140
|
|
|
10,989
|
|
|
5,732
|
|
|
16,721
|
|
||||||
Commercial real estate
|
85,114
|
|
|
58,463
|
|
|
143,577
|
|
|
72,749
|
|
|
69,228
|
|
|
141,977
|
|
||||||
Total corporate performing
potential problem loans
(4)
|
$
|
216,469
|
|
|
$
|
114,762
|
|
|
$
|
331,231
|
|
|
$
|
154,601
|
|
|
$
|
105,034
|
|
|
$
|
259,635
|
|
Corporate performing potential
problem loans to corporate
loans
|
2.46
|
%
|
|
1.31
|
%
|
|
3.77
|
%
|
|
1.82
|
%
|
|
1.23
|
%
|
|
3.05
|
%
|
||||||
Corporate PCI performing
potential problem loans
included in the totals above
|
$
|
14,546
|
|
|
$
|
22,022
|
|
|
$
|
36,568
|
|
|
$
|
17,685
|
|
|
$
|
26,635
|
|
|
$
|
44,320
|
|
(1)
|
Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future.
|
(2)
|
Loans categorized as substandard exhibit well-defined weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well-secured and collection of principal and interest is expected within a reasonable time.
|
(3)
|
Total corporate performing potential problem loans excludes accruing TDRs of
$645,000
as of
June 30, 2018
and
$657,000
as of
December 31, 2017
.
|
(4)
|
Includes corporate PCI performing potential problem loans.
|
|
|
As of
|
||||||||||
|
|
June 30, 2018
|
|
December 31, 2017
|
|
June 30, 2017
|
||||||
Single-family homes
|
|
$
|
633
|
|
|
$
|
837
|
|
|
$
|
1,243
|
|
Land parcels:
|
|
|
|
|
|
|
||||||
Raw land
|
|
148
|
|
|
850
|
|
|
868
|
|
|||
Commercial lots
|
|
5,006
|
|
|
8,698
|
|
|
9,852
|
|
|||
Single-family lots
|
|
1,962
|
|
|
2,150
|
|
|
2,150
|
|
|||
Total land parcels
|
|
7,116
|
|
|
11,698
|
|
|
12,870
|
|
|||
Multi-family units
|
|
225
|
|
|
48
|
|
|
48
|
|
|||
Commercial properties
|
|
4,918
|
|
|
8,268
|
|
|
12,332
|
|
|||
Total OREO
|
|
$
|
12,892
|
|
|
$
|
20,851
|
|
|
$
|
26,493
|
|
|
|
Quarters Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Beginning balance
|
|
$
|
17,472
|
|
|
$
|
29,140
|
|
|
$
|
20,851
|
|
|
$
|
26,083
|
|
Transfers from loans
|
|
235
|
|
|
1,299
|
|
|
1,172
|
|
|
1,982
|
|
||||
Acquisitions
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
8,424
|
|
||||
Proceeds from sales
|
|
(4,762
|
)
|
|
(3,112
|
)
|
|
(8,638
|
)
|
|
(8,476
|
)
|
||||
Gains on sales of OREO
|
|
35
|
|
|
215
|
|
|
15
|
|
|
59
|
|
||||
OREO valuation adjustments
|
|
(88
|
)
|
|
(1,046
|
)
|
|
(508
|
)
|
|
(1,579
|
)
|
||||
Ending balance
|
|
$
|
12,892
|
|
|
$
|
26,493
|
|
|
$
|
12,892
|
|
|
$
|
26,493
|
|
|
|
Loans, Excluding Acquired Loans
|
|
Acquired Loans
(1)
|
|
Total
|
||||||
Six months ended June 30, 2018
|
|
|
|
|
|
|
||||||
Beginning balance
|
|
$
|
94,123
|
|
|
$
|
2,606
|
|
|
$
|
96,729
|
|
Net charge-offs
|
|
(25,178
|
)
|
|
(655
|
)
|
|
(25,833
|
)
|
|||
Provision for loan losses and other expense
|
|
26,795
|
|
|
—
|
|
|
26,795
|
|
|||
Ending balance
|
|
$
|
95,740
|
|
|
$
|
1,951
|
|
|
$
|
97,691
|
|
As of June 30, 2018
|
|
|
|
|
|
|
||||||
Total loans
|
|
$
|
9,568,000
|
|
|
$
|
1,323,565
|
|
|
$
|
10,891,565
|
|
Remaining acquisition adjustment
(2)
|
|
N/A
|
|
|
66,083
|
|
|
66,083
|
|
|||
Allowance for credit losses to total loans
(3)
|
|
1.00
|
%
|
|
0.15
|
%
|
|
0.90
|
%
|
|||
Remaining acquisition adjustment to acquired loans
|
|
N/A
|
|
|
4.99
|
%
|
|
N/A
|
|
|||
As of December 31, 2017
|
|
|
|
|
|
|
||||||
Total loans
|
|
$
|
8,822,560
|
|
|
$
|
1,615,252
|
|
|
$
|
10,437,812
|
|
Remaining acquisition adjustment
(2)
|
|
N/A
|
|
|
74,677
|
|
|
74,677
|
|
|||
Allowance for credit losses to total loans
(3)
|
|
1.07
|
%
|
|
0.16
|
%
|
|
0.93
|
%
|
|||
Remaining acquisition adjustment to acquired loans
|
|
N/A
|
|
|
4.62
|
%
|
|
N/A
|
|
(1)
|
These amounts and ratios relate to the loans acquired in completed acquisitions.
|
(2)
|
The remaining acquisition adjustment consists of
$38.4 million
and
$27.7 million
relating to PCI and non-purchased credit impaired ("Non-PCI") loans, respectively, as of
June 30, 2018
, and $43.5 million and $31.2 million relating to PCI and Non-PCI loans, respectively, as of
December 31, 2017
.
|
(3)
|
The allowance for credit losses to total loans, excluding acquired loans is a non-GAAP financial measure. For a discussion of non-GAAP financial measures, see the section of this Item 2 titled "
Non-GAAP Financial Information and Reconciliations
."
|
|
Quarters Ended
|
||||||||||||||||||
|
June 30,
2018 |
|
March 31,
2018 |
|
December 31,
2017 |
|
September 30,
2017 |
|
June 30,
2017 |
||||||||||
Change in allowance for credit losses
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
$
|
95,854
|
|
|
$
|
96,729
|
|
|
$
|
95,814
|
|
|
$
|
93,371
|
|
|
$
|
89,163
|
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, industrial, and agricultural
|
8,662
|
|
|
14,670
|
|
|
6,919
|
|
|
8,935
|
|
|
2,957
|
|
|||||
Office, retail, and industrial
|
305
|
|
|
461
|
|
|
49
|
|
|
14
|
|
|
—
|
|
|||||
Multi-family
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
39
|
|
|||||
Other commercial real estate
|
1
|
|
|
69
|
|
|
34
|
|
|
6
|
|
|
307
|
|
|||||
Consumer
|
2,337
|
|
|
1,885
|
|
|
2,118
|
|
|
1,617
|
|
|
1,556
|
|
|||||
Total loan charge-offs
|
11,309
|
|
|
17,085
|
|
|
9,120
|
|
|
10,566
|
|
|
4,859
|
|
|||||
Recoveries of loan charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, industrial, and agricultural
|
753
|
|
|
538
|
|
|
1,386
|
|
|
698
|
|
|
400
|
|
|||||
Office, retail, and industrial
|
26
|
|
|
97
|
|
|
127
|
|
|
1,825
|
|
|
8
|
|
|||||
Multi-family
|
—
|
|
|
—
|
|
|
3
|
|
|
2
|
|
|
6
|
|
|||||
Construction
|
8
|
|
|
13
|
|
|
12
|
|
|
19
|
|
|
12
|
|
|||||
Other commercial real estate
|
359
|
|
|
39
|
|
|
39
|
|
|
25
|
|
|
79
|
|
|||||
Consumer
|
386
|
|
|
342
|
|
|
444
|
|
|
331
|
|
|
323
|
|
|||||
Total recoveries of loan charge-offs
|
1,532
|
|
|
1,029
|
|
|
2,011
|
|
|
2,900
|
|
|
828
|
|
|||||
Net loan charge-offs
|
9,777
|
|
|
16,056
|
|
|
7,109
|
|
|
7,666
|
|
|
4,031
|
|
|||||
Provision for loan losses
|
11,614
|
|
|
15,181
|
|
|
8,024
|
|
|
10,109
|
|
|
8,239
|
|
|||||
Ending balance
|
$
|
97,691
|
|
|
$
|
95,854
|
|
|
$
|
96,729
|
|
|
$
|
95,814
|
|
|
$
|
93,371
|
|
Allowance for credit losses
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
$
|
96,691
|
|
|
$
|
94,854
|
|
|
$
|
95,729
|
|
|
$
|
94,814
|
|
|
$
|
92,371
|
|
Reserve for unfunded commitments
|
1,000
|
|
|
1,000
|
|
|
1,000
|
|
|
1,000
|
|
|
1,000
|
|
|||||
Total allowance for credit losses
|
$
|
97,691
|
|
|
$
|
95,854
|
|
|
$
|
96,729
|
|
|
$
|
95,814
|
|
|
$
|
93,371
|
|
Allowance for credit losses to loans
(1)
|
0.90
|
%
|
|
0.90
|
%
|
|
0.93
|
%
|
|
0.92
|
%
|
|
0.91
|
%
|
|||||
Allowance for credit losses to loans, excluding
acquired loans
(2)
|
1.00
|
%
|
|
1.01
|
%
|
|
1.07
|
%
|
|
1.09
|
%
|
|
1.10
|
%
|
|||||
Allowance for credit losses to
non-accrual loans
|
182.69
|
%
|
|
127.78
|
%
|
|
144.54
|
%
|
|
147.01
|
%
|
|
117.90
|
%
|
|||||
Allowance for credit losses to
non-performing loans
|
159.03
|
%
|
|
120.35
|
%
|
|
137.25
|
%
|
|
140.87
|
%
|
|
114.91
|
%
|
|||||
Average loans
|
$
|
10,785,341
|
|
|
$
|
10,496,089
|
|
|
$
|
10,380,689
|
|
|
$
|
10,273,630
|
|
|
$
|
10,059,968
|
|
Net loan charge-offs to average loans,
annualized
|
0.36
|
%
|
|
0.62
|
%
|
|
0.27
|
%
|
|
0.30
|
%
|
|
0.16
|
%
|
(1)
|
This ratio includes acquired loans that are recorded at fair value through an acquisition adjustment, which incorporates credit risk as of the acquisition date with no allowance for credit losses being established at that time. As the acquisition adjustment is accreted into income over future periods, an allowance for credit losses is established as necessary to reflect credit deterioration. See the Allowance for Credit Losses and Acquisition Adjustment table above for further discussion of the allowance for acquired loan losses and the related acquisition adjustment.
|
(2)
|
This item is a non-GAAP financial measure. For a discussion of non-GAAP financial measures, see the section of this Item 2 titled "
Non-GAAP Financial Information and Reconciliations
."
|
|
Quarters Ended
|
|
|
June 30, 2018 % Change From
|
||||||||||||||
|
June 30,
2018 |
|
December 31,
2017 |
|
June 30,
2017 |
|
|
December 31,
2017 |
|
June 30,
2017 |
||||||||
Demand deposits
|
$
|
3,621,645
|
|
|
$
|
3,611,811
|
|
|
$
|
3,538,049
|
|
|
|
0.3
|
|
|
2.4
|
|
Savings deposits
|
2,060,066
|
|
|
2,017,489
|
|
|
2,072,343
|
|
|
|
2.1
|
|
|
(0.6
|
)
|
|||
NOW accounts
|
2,065,530
|
|
|
1,992,150
|
|
|
2,010,152
|
|
|
|
3.7
|
|
|
2.8
|
|
|||
Money market accounts
|
1,759,313
|
|
|
1,938,195
|
|
|
1,942,672
|
|
|
|
(9.2
|
)
|
|
(9.4
|
)
|
|||
Core deposits
|
9,506,554
|
|
|
9,559,645
|
|
|
9,563,216
|
|
|
|
(0.6
|
)
|
|
(0.6
|
)
|
|||
Time deposits
|
1,860,561
|
|
|
1,613,681
|
|
|
1,516,531
|
|
|
|
15.3
|
|
|
22.7
|
|
|||
Brokered deposits
|
11,105
|
|
|
6,077
|
|
|
22,314
|
|
|
|
82.7
|
|
|
(50.2
|
)
|
|||
Total time deposits
|
1,871,666
|
|
|
1,619,758
|
|
|
1,538,845
|
|
|
|
15.6
|
|
|
21.6
|
|
|||
Total deposits
|
11,378,220
|
|
|
11,179,403
|
|
|
11,102,061
|
|
|
|
1.8
|
|
|
2.5
|
|
|||
Securities sold under agreements to
repurchase
|
114,726
|
|
|
119,797
|
|
|
122,961
|
|
|
|
(4.2
|
)
|
|
(6.7
|
)
|
|||
Federal funds purchased
|
714
|
|
|
—
|
|
|
—
|
|
|
|
N/M
|
|
|
N/M
|
|
|||
FHLB advances
|
798,462
|
|
|
434,837
|
|
|
430,085
|
|
|
|
83.6
|
|
|
85.7
|
|
|||
Total borrowed funds
|
913,902
|
|
|
554,634
|
|
|
553,046
|
|
|
|
64.8
|
|
|
65.2
|
|
|||
Senior and subordinated debt
|
195,385
|
|
|
195,102
|
|
|
194,819
|
|
|
|
0.1
|
|
|
0.3
|
|
|||
Total funding sources
|
$
|
12,487,507
|
|
|
$
|
11,929,139
|
|
|
$
|
11,849,926
|
|
|
|
4.7
|
|
|
5.4
|
|
Average interest rate paid on
borrowed funds
|
1.54
|
%
|
|
1.62
|
%
|
|
1.52
|
%
|
|
|
|
|
|
|||||
Weighted-average maturity of FHLB
advances
|
1.1 months
|
|
|
1.0 months
|
|
|
1.1 months
|
|
|
|
|
|
|
|||||
Weighted-average interest rate of
FHLB advances
|
2.05
|
%
|
|
1.26
|
%
|
|
1.08
|
%
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2018
|
||||||||||
|
As of
|
|
Regulatory
Minimum
For
Well-
Capitalized
|
|
|
||||||||||
|
June 30,
2018 |
|
December 31, 2017
|
|
|
Excess Over
Required Minimums |
|||||||||
Bank regulatory capital ratios
|
|
|
|
|
|
|
|
|
|
||||||
Total capital to risk-weighted assets
|
10.77
|
%
|
|
10.95
|
%
|
|
10.00
|
%
|
|
8
|
%
|
|
$
|
95,369
|
|
Tier 1 capital to risk-weighted assets
|
9.98
|
%
|
|
10.13
|
%
|
|
8.00
|
%
|
|
25
|
%
|
|
$
|
243,907
|
|
CET1 to risk-weighted assets
|
9.98
|
%
|
|
10.13
|
%
|
|
6.50
|
%
|
|
54
|
%
|
|
$
|
428,578
|
|
Tier 1 capital to average assets
|
8.86
|
%
|
|
9.10
|
%
|
|
5.00
|
%
|
|
77
|
%
|
|
$
|
534,989
|
|
Company regulatory capital ratios
|
|
|
|
|
|
|
|
|
|
||||||
Total capital to risk-weighted assets
|
12.07
|
%
|
|
12.15
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
Tier 1 capital to risk-weighted assets
|
10.09
|
%
|
|
10.10
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
CET1 to risk-weighted assets
|
9.68
|
%
|
|
9.68
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
Tier 1 capital to average assets
|
8.95
|
%
|
|
8.99
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
Company tangible common equity ratios
(1)(2)
|
|
|
|
|
|
|
|
|
|
||||||
Tangible common equity to tangible assets
|
8.04
|
%
|
|
8.33
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
Tangible common equity, excluding
accumulated other comprehensive loss, to
tangible assets
|
8.50
|
%
|
|
8.58
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
Tangible common equity to risk-weighted
assets
|
9.16
|
%
|
|
9.31
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
(1)
|
Ratios are not subject to formal Federal Reserve regulatory guidance.
|
(2)
|
Tangible common equity ratios are non-GAAP financial measures. For a discussion of non-GAAP financial measures, see the section of this Item 2 titled "
Non-GAAP Financial Information and Reconciliations
."
|
|
|
Quarters Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Earnings Per Share
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
29,600
|
|
|
$
|
34,950
|
|
|
$
|
63,110
|
|
|
$
|
57,805
|
|
Net income applicable to non-vested restricted shares
|
|
(240
|
)
|
|
(336
|
)
|
|
(551
|
)
|
|
(570
|
)
|
||||
Net income applicable to common shares
|
|
29,360
|
|
|
34,614
|
|
|
62,559
|
|
|
57,235
|
|
||||
Adjustments to net income:
|
|
|
|
|
|
|
|
|
||||||||
Delivering Excellence implementation costs
|
|
15,015
|
|
|
—
|
|
|
15,015
|
|
|
—
|
|
||||
Tax effect of Delivering Excellence implementation costs
|
|
(3,754
|
)
|
|
—
|
|
|
(3,754
|
)
|
|
—
|
|
||||
Acquisition and integration related expenses
|
|
—
|
|
|
1,174
|
|
|
—
|
|
|
19,739
|
|
||||
Tax effect of acquisition and integration related expenses
|
|
—
|
|
|
(470
|
)
|
|
—
|
|
|
(7,896
|
)
|
||||
Total adjustments to net income, net of tax
|
|
11,261
|
|
|
704
|
|
|
11,261
|
|
|
11,843
|
|
||||
Net income applicable to common shares, adjusted
(1)
|
|
$
|
40,621
|
|
|
$
|
35,318
|
|
|
$
|
73,820
|
|
|
$
|
69,078
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
||||||||||
Weighted-average common shares outstanding (basic)
|
|
102,159
|
|
|
101,743
|
|
|
102,041
|
|
|
101,081
|
|
||||
Dilutive effect of common stock equivalents
|
|
—
|
|
|
20
|
|
|
8
|
|
|
20
|
|
||||
Weighted-average diluted common shares outstanding
|
|
102,159
|
|
|
101,763
|
|
|
102,049
|
|
|
101,101
|
|
||||
Basic EPS
|
|
$
|
0.29
|
|
|
$
|
0.34
|
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
Diluted EPS
|
|
$
|
0.29
|
|
|
$
|
0.34
|
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
Diluted EPS, adjusted
(1)
|
|
$
|
0.40
|
|
|
$
|
0.35
|
|
|
$
|
0.72
|
|
|
$
|
0.68
|
|
Return on Average Assets
|
|
|
|
|
|
|
||||||||||
Net income
|
|
$
|
29,600
|
|
|
$
|
34,950
|
|
|
$
|
63,110
|
|
|
$
|
57,805
|
|
Total adjustments to net income, net of tax
|
|
11,261
|
|
|
704
|
|
|
11,261
|
|
|
11,843
|
|
||||
Net income, adjusted
(1)
|
|
$
|
40,861
|
|
|
$
|
35,654
|
|
|
$
|
74,371
|
|
|
$
|
69,648
|
|
Average assets
|
|
$
|
14,605,715
|
|
|
$
|
13,960,843
|
|
|
$
|
14,397,540
|
|
|
$
|
13,817,779
|
|
Return on average assets
(3)
|
|
0.81
|
%
|
|
1.00
|
%
|
|
0.88
|
%
|
|
0.84
|
%
|
||||
Return on average assets, adjusted
(1)(3)
|
|
1.12
|
%
|
|
1.02
|
%
|
|
1.04
|
%
|
|
1.02
|
%
|
||||
Return on Average Common and Tangible Common Equity
|
|
|
|
|
|
|
||||||||||
Net income applicable to common shares
|
|
$
|
29,360
|
|
|
$
|
34,614
|
|
|
$
|
62,559
|
|
|
$
|
57,235
|
|
Intangibles amortization
|
|
1,794
|
|
|
2,163
|
|
|
3,596
|
|
|
4,128
|
|
||||
Tax effect of intangibles amortization
|
|
(449
|
)
|
|
(865
|
)
|
|
(957
|
)
|
|
(1,651
|
)
|
||||
Net income applicable to common shares, excluding
intangibles amortization |
|
30,705
|
|
|
35,912
|
|
|
65,198
|
|
|
59,712
|
|
||||
Total adjustments to net income, net of tax
|
|
11,261
|
|
|
704
|
|
|
11,261
|
|
|
11,843
|
|
||||
Net income applicable to common shares, excluding
intangibles amortization, adjusted (1) |
|
$
|
41,966
|
|
|
$
|
36,616
|
|
|
$
|
76,459
|
|
|
$
|
71,555
|
|
Average stockholders' common equity
|
|
$
|
1,890,727
|
|
|
$
|
1,830,536
|
|
|
1,882,121
|
|
|
$
|
1,797,222
|
|
|
Less: average intangible assets
|
|
(753,887
|
)
|
|
(753,521
|
)
|
|
(753,879
|
)
|
|
(752,063
|
)
|
||||
Average tangible common equity
|
|
$
|
1,136,840
|
|
|
$
|
1,077,015
|
|
|
$
|
1,128,242
|
|
|
$
|
1,045,159
|
|
Return on average common equity
(3)
|
|
6.23
|
%
|
|
7.58
|
%
|
|
6.70
|
%
|
|
6.42
|
%
|
||||
Return on average common equity, adjusted
(1)(3)
|
|
8.62
|
%
|
|
7.74
|
%
|
|
7.91
|
%
|
|
7.75
|
%
|
||||
Return on average tangible common equity
(3)
|
|
10.83
|
%
|
|
13.37
|
%
|
|
11.65
|
%
|
|
11.52
|
%
|
||||
Return on average tangible common equity, adjusted
(1)(3)
|
|
14.81
|
%
|
|
13.64
|
%
|
|
13.67
|
%
|
|
13.81
|
%
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Note: Non-GAAP Reconciliations footnotes are located at the end of this section.
|
|
|
|
|
|
|
As of
|
||||||
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Tangible Common Equity
|
|
|
|
|
||||
Stockholders' equity
|
|
$
|
1,883,563
|
|
|
$
|
1,864,874
|
|
Less: goodwill and other intangible assets
|
|
(753,020
|
)
|
|
(754,757
|
)
|
||
Tangible common equity
|
|
1,130,543
|
|
|
1,110,117
|
|
||
Less: accumulated other comprehensive income ("AOCI")
|
|
64,400
|
|
|
33,036
|
|
||
Tangible common equity, excluding AOCI
|
|
$
|
1,194,943
|
|
|
$
|
1,143,153
|
|
Total assets
|
|
$
|
14,818,076
|
|
|
$
|
14,077,052
|
|
Less: goodwill and other intangible assets
|
|
(753,020
|
)
|
|
(754,757
|
)
|
||
Tangible assets
|
|
$
|
14,065,056
|
|
|
$
|
13,322,295
|
|
Risk-weighted assets
|
|
$
|
12,345,200
|
|
|
$
|
11,920,372
|
|
Tangible common equity to tangible assets
|
|
8.04
|
%
|
|
8.33
|
%
|
||
Tangible common equity, excluding AOCI, to tangible assets
|
|
8.50
|
%
|
|
8.58
|
%
|
||
Tangible common equity to risk-weighted assets
|
|
9.16
|
%
|
|
9.31
|
%
|
|
|
Quarters Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Efficiency Ratio Calculation
|
|
|
|
|
|
|
||||||||||
Noninterest expense
|
|
$
|
113,416
|
|
|
$
|
99,751
|
|
|
$
|
208,998
|
|
|
$
|
216,393
|
|
Less:
|
|
|
|
|
|
|
|
|
||||||||
Net OREO expense
|
|
256
|
|
|
(1,631
|
)
|
|
(812
|
)
|
|
(3,331
|
)
|
||||
Delivering Excellence implementation costs
|
|
(15,015
|
)
|
|
—
|
|
|
(15,015
|
)
|
|
—
|
|
||||
Acquisition and integration related expenses
|
|
—
|
|
|
(1,174
|
)
|
|
—
|
|
|
(19,739
|
)
|
||||
Total
|
|
$
|
98,657
|
|
|
$
|
96,946
|
|
|
$
|
193,171
|
|
|
$
|
193,323
|
|
Tax-equivalent net interest income
(2)
|
|
$
|
128,442
|
|
|
$
|
119,625
|
|
|
$
|
247,980
|
|
|
$
|
236,876
|
|
Noninterest income
|
|
36,947
|
|
|
44,945
|
|
|
72,464
|
|
|
84,896
|
|
||||
Less: net securities gains
|
|
—
|
|
|
(284
|
)
|
|
—
|
|
|
(284
|
)
|
||||
Total
|
|
$
|
165,389
|
|
|
$
|
164,286
|
|
|
$
|
320,444
|
|
|
$
|
321,488
|
|
Efficiency ratio
|
|
59.65
|
%
|
|
59.01
|
%
|
|
60.28
|
%
|
|
60.13
|
%
|
||||
Efficiency ratio (prior presentation)
(4)
|
|
N/A
|
|
|
58.67
|
%
|
|
N/A
|
|
|
59.80
|
%
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Note: Non-GAAP Reconciliations footnotes are located at the end of this section.
|
|
|
|
|
|
|
For the Years Ended December 31,
|
||||||||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Efficiency Ratio
|
||||||||||||||||||||
Noninterest expense
|
|
$
|
415,909
|
|
|
$
|
339,500
|
|
|
$
|
307,216
|
|
|
$
|
283,826
|
|
|
$
|
256,737
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net OREO expense
|
|
(4,683
|
)
|
|
(3,024
|
)
|
|
(5,281
|
)
|
|
(7,075
|
)
|
|
(8,547
|
)
|
|||||
Special bonus
|
|
(1,915
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Charitable contribution
|
|
(1,600
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Acquisition and integration related expenses
|
|
(20,123
|
)
|
|
(14,352
|
)
|
|
(1,389
|
)
|
|
(13,872
|
)
|
|
—
|
|
|||||
Lease cancellation fee
|
|
—
|
|
|
(950
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Property valuation adjustments
|
|
—
|
|
|
—
|
|
|
(8,581
|
)
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
387,588
|
|
|
$
|
321,174
|
|
|
$
|
291,965
|
|
|
$
|
262,879
|
|
|
$
|
248,190
|
|
Tax-equivalent net interest income
(2)
|
|
$
|
479,965
|
|
|
$
|
358,334
|
|
|
$
|
322,277
|
|
|
$
|
288,589
|
|
|
$
|
272,429
|
|
Noninterest income
|
|
163,149
|
|
|
159,312
|
|
|
136,581
|
|
|
126,618
|
|
|
140,883
|
|
|||||
Less:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net securities gains (losses)
|
|
1,876
|
|
|
(1,420
|
)
|
|
(2,373
|
)
|
|
(8,097
|
)
|
|
(34,164
|
)
|
|||||
Net gain on sale-leaseback transaction
|
|
—
|
|
|
(5,509
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Gains on sales of properties
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,954
|
)
|
|
|
||||||
Loss on early extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,059
|
|
|
—
|
|
|||||
Gain on termination of FHLB forward
commitments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,829
|
)
|
|||||
Total
|
|
$
|
644,990
|
|
|
$
|
510,717
|
|
|
$
|
456,485
|
|
|
$
|
405,215
|
|
|
$
|
371,319
|
|
Efficiency ratio
|
|
60.09
|
%
|
|
62.89
|
%
|
|
63.96
|
%
|
|
64.87
|
%
|
|
66.84
|
%
|
|||||
Efficiency ratio (prior presentation)
(4)
|
|
59.73
|
%
|
|
62.59
|
%
|
|
63.57
|
%
|
|
64.57
|
%
|
|
64.19
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjustments to net income for each period presented are detailed in the EPS non-GAAP reconciliation above.
|
(2)
|
Presented on a tax-equivalent basis, assuming the applicable federal income tax rate for each period presented. As a result, interest income and yields on tax-exempt securities and loans subsequent to December 31, 2017 are presented using the current federal income tax rate of 21% and prior periods are computed using the federal income tax rate applicable at that time of 35%.
|
(3)
|
Annualized based on the actual number of days for each period presented.
|
(4)
|
Presented as calculated prior to March 31, 2018, which included a tax-equivalent adjustment for BOLI. Management believes that removing this adjustment from the current calculation of this metric enhances comparability for peer comparison purposes.
|
|
|
Immediate Change in Rates
|
||||||||||||||
|
|
+300
|
|
+200
|
|
+100
|
|
-100
|
||||||||
As of June 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
Dollar change
|
|
$
|
74,655
|
|
|
$
|
45,758
|
|
|
$
|
23,435
|
|
|
$
|
(50,182
|
)
|
Percent change
|
|
14.1
|
%
|
|
8.7
|
%
|
|
4.4
|
%
|
|
(9.5
|
)%
|
||||
As of December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Dollar change
|
|
$
|
70,999
|
|
|
$
|
44,733
|
|
|
$
|
33,099
|
|
|
$
|
(44,579
|
)
|
Percent change
|
|
14.8
|
%
|
|
9.3
|
%
|
|
6.9
|
%
|
|
(9.3
|
)%
|
|
|
Total
Number of
Shares
Purchased
(1)
|
|
Average
Price
Paid per
Share
|
|
Total Number
of Shares
Purchased as
Part of a
Publicly
Announced
Plan or
Program
|
|
Maximum
Number of
Shares that
May Yet Be
Purchased
Under the
Plan or
Program
|
|||||
April 1 - April 30, 2018
|
|
2,562
|
|
|
$
|
24.81
|
|
|
—
|
|
|
2,487,947
|
|
May 1 - May 31, 2018
|
|
592
|
|
|
25.72
|
|
|
—
|
|
|
2,487,947
|
|
|
June 1 - June 30, 2018
|
|
279
|
|
|
26.58
|
|
|
—
|
|
|
2,487,947
|
|
|
Total
|
|
3,433
|
|
|
$
|
25.11
|
|
|
—
|
|
|
|
(1)
|
Consists of shares acquired pursuant to the Company's share-based compensation plans and not the Company's Board-approved stock repurchase program. Under the terms of the Company's share-based compensation plans, the Company accepts previously owned shares of common stock surrendered to satisfy tax withholding obligations associated with the vesting of restricted stock.
|
Exhibit
Number
|
|
Description of Documents
|
|
|
|
10.1
(1)
|
|
Employment Agreement, dated as of June 18, 2018, between the Company and its Chief Executive Officer.
|
|
Confidentiality and Restrictive Covenants Agreement, dated as of June 18, 2018, between the Company and its Chief Executive Officer.
|
|
10.3
(1)
|
|
First Midwest Bancorp, Inc. 2018 Stock and Incentive Plan is incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on May 17, 2018.
|
|
Statement re: Computation of Per Share Earnings – The computation of basic and diluted earnings per common share is included in Note 8 of the Company's Notes to the Condensed Consolidated Financial Statements included in "ITEM 1. FINANCIAL STATEMENTS" of this document.
|
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
32.1
(2)
|
|
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2
(2)
|
|
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101
|
|
Interactive Data File.
|
(1)
|
Management contract or compensatory plan or arrangement.
|
(2)
|
Furnished, not filed.
|
First Midwest Bancorp, Inc.
|
|
/s/ PATRICK S. BARRETT
|
Patrick S. Barrett
Executive Vice President and Chief Financial Officer*
|
|
|
By:
|
/s/ Kathleen Carroll
|
||
|
|
|
|
|
|
|
|
Name:
|
Kathleen Carroll
|
||
|
|
|
|
|
|
|
|
|
|
Executive Vice President and
|
|
|
|
Title:
|
Chief Human Resources Officer
|
By:
|
/s/ Nicholas J. Chulos
|
|
|||
|
|
|
|
|
|
|
Nicholas J. Chulos
|
|
|||
|
Executive Vice President, General Counsel
|
|
|||
|
and Corporate Secretary
|
|
|
|
By:
|
/s/ Michael L. Scudder
|
||
|
|
|
|
|
|
|
|
Name:
|
Michael L. Scudder
|
|
FIRST MIDWEST BANCORP, INC.
, for itself and its Subsidiaries
|
|
|
|
|
|
By:
|
|
|
Its:
|
|
|
|
|
|
EXECUTIVE
|
|
|
|
|
1.
|
NON-USE OF EMPLOYER’S PROPERTY
|
2.
|
NON-DISCLOSURE OF EMPLOYER’S CONFIDENTIAL INFORMATION
|
FIRST MIDWEST BANCORP, INC.
|
|
EMPLOYEE
|
|||
FIRST MIDWEST BANK
|
|
|
|||
FOR AND ON BEHALF OF EMPLOYER
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Kathleen S. Carroll
|
|
/s/ Michael L. Scudder
|
||
|
|
|
|
|
Michael L. Scudder
|
Name:
|
Kathleen S. Carroll
|
|
|
||
|
|
|
|
|
|
|
|
Executive Vice President and
|
|
|
|
Title:
|
Chief Human Resources Officer
|
|
|
1.
|
I have reviewed this report on Form 10-Q of First Midwest Bancorp, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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Date: August 7, 2018
|
|
/s/ MICHAEL L. SCUDDER
|
|
|
Chairman of the Board, President and Chief Executive Officer
|
1.
|
I have reviewed this report on Form 10-Q of First Midwest Bancorp, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: August 7, 2018
|
|
/s/ PATRICK S. BARRETT
|
|
|
Executive Vice President
and Chief Financial Officer
|
1.
|
The Company's Report on Form 10-Q for the quarter ended
June 30, 2018
(the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities and Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ MICHAEL L. SCUDDER
|
|
|
|
Name:
|
Michael L. Scudder
|
|
|
Title:
|
Chairman of the Board, President and Chief Executive Officer
|
|
|
Dated:
|
August 7, 2018
|
|
|
1.
|
The Company's Report on Form 10-Q for the quarter ended
June 30, 2018
(the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities and Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ PATRICK S. BARRETT
|
|
|
|
Name:
|
Patrick S. Barrett
|
|
|
Title:
|
Executive Vice President and Chief Financial Officer
|
|
|
Dated:
|
August 7, 2018
|
|
|