|
☒
|
Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
|
☐
|
Transition Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
|
New Jersey
|
|
|
22-2477875
|
||
(State or other jurisdiction of
Incorporation or Organization)
|
|
|
(I.R.S. Employer
Identification Number)
|
||
|
|
|
|
|
|
One Penn Plaza
|
|
|
|
||
New York,
|
NY
|
|
|
10119
|
|
(Address of principal executive office)
|
|
|
(Zip code)
|
|
Title of each class
|
Trading Symbols
|
Name of exchange on which registered
|
Common Stock, no par value
|
VLY
|
The Nasdaq Stock Market LLC
|
Non-Cumulative Perpetual Preferred Stock, Series A, no par value
|
VLYPP
|
The Nasdaq Stock Market LLC
|
Non-Cumulative Perpetual Preferred Stock, Series B, no par value
|
VLYPO
|
The Nasdaq Stock Market LLC
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
|
|
|
|
Non-accelerated filer
|
☐
|
Emerging growth company
|
☐
|
|
|
Page
Number
|
PART I
|
|
|
|
|
|
Item 1.
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
PART II
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
Assets
|
(Unaudited)
|
|
|
||||
Cash and due from banks
|
$
|
276,291
|
|
|
$
|
251,541
|
|
Interest bearing deposits with banks
|
178,905
|
|
|
177,088
|
|
||
Investment securities:
|
|
|
|
||||
Held to maturity (fair value of $2,184,792 at June 30, 2019 and $2,034,943 at December 31, 2018)
|
2,168,236
|
|
|
2,068,246
|
|
||
Available for sale
|
1,679,350
|
|
|
1,749,544
|
|
||
Total investment securities
|
3,847,586
|
|
|
3,817,790
|
|
||
Loans held for sale, at fair value
|
36,641
|
|
|
35,155
|
|
||
Loans
|
25,802,162
|
|
|
25,035,469
|
|
||
Less: Allowance for loan losses
|
(155,105
|
)
|
|
(151,859
|
)
|
||
Net loans
|
25,647,057
|
|
|
24,883,610
|
|
||
Premises and equipment, net
|
312,627
|
|
|
341,630
|
|
||
Lease right of use assets
|
283,348
|
|
|
—
|
|
||
Bank owned life insurance
|
442,343
|
|
|
439,602
|
|
||
Accrued interest receivable
|
99,065
|
|
|
95,296
|
|
||
Goodwill
|
1,084,665
|
|
|
1,084,665
|
|
||
Other intangible assets, net
|
70,585
|
|
|
76,990
|
|
||
Other assets
|
748,628
|
|
|
659,721
|
|
||
Total Assets
|
$
|
33,027,741
|
|
|
$
|
31,863,088
|
|
Liabilities
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Non-interest bearing
|
$
|
6,327,789
|
|
|
$
|
6,175,495
|
|
Interest bearing:
|
|
|
|
||||
Savings, NOW and money market
|
11,107,952
|
|
|
11,213,495
|
|
||
Time
|
7,338,188
|
|
|
7,063,984
|
|
||
Total deposits
|
24,773,929
|
|
|
24,452,974
|
|
||
Short-term borrowings
|
2,387,784
|
|
|
2,118,914
|
|
||
Long-term borrowings
|
1,800,182
|
|
|
1,654,268
|
|
||
Junior subordinated debentures issued to capital trusts
|
55,544
|
|
|
55,370
|
|
||
Lease liabilities
|
307,405
|
|
|
3,125
|
|
||
Accrued expenses and other liabilities
|
198,779
|
|
|
227,983
|
|
||
Total Liabilities
|
29,523,623
|
|
|
28,512,634
|
|
||
Shareholders’ Equity
|
|
|
|
||||
Preferred stock, no par value; 50,000,000 authorized shares:
|
|
|
|
||||
Series A (4,600,000 shares issued at June 30, 2019 and December 31, 2018)
|
111,590
|
|
|
111,590
|
|
||
Series B (4,000,000 shares issued at June 30, 2019 and December 31, 2018)
|
98,101
|
|
|
98,101
|
|
||
Common stock (no par value, authorized 450,000,000 shares; issued 332,101,525 shares at June 30, 2019 and 331,634,951 shares at December 31, 2018)
|
116,571
|
|
|
116,240
|
|
||
Surplus
|
2,804,059
|
|
|
2,796,499
|
|
||
Retained earnings
|
412,190
|
|
|
299,642
|
|
||
Accumulated other comprehensive loss
|
(35,131
|
)
|
|
(69,431
|
)
|
||
Treasury stock, at cost (313,376 common shares at June 30, 2019 and 203,734 common shares at December 31, 2018)
|
(3,262
|
)
|
|
(2,187
|
)
|
||
Total Shareholders’ Equity
|
3,504,118
|
|
|
3,350,454
|
|
||
Total Liabilities and Shareholders’ Equity
|
$
|
33,027,741
|
|
|
$
|
31,863,088
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest Income
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans
|
$
|
296,934
|
|
|
$
|
247,690
|
|
|
$
|
585,211
|
|
|
$
|
485,276
|
|
Interest and dividends on investment securities:
|
|
|
|
|
|
|
|
||||||||
Taxable
|
22,489
|
|
|
22,222
|
|
|
45,365
|
|
|
43,545
|
|
||||
Tax-exempt
|
4,356
|
|
|
5,639
|
|
|
9,160
|
|
|
11,360
|
|
||||
Dividends
|
2,795
|
|
|
3,728
|
|
|
5,969
|
|
|
5,667
|
|
||||
Interest on federal funds sold and other short-term investments
|
1,168
|
|
|
839
|
|
|
2,261
|
|
|
1,765
|
|
||||
Total interest income
|
327,742
|
|
|
280,118
|
|
|
647,966
|
|
|
547,613
|
|
||||
Interest Expense
|
|
|
|
|
|
|
|
||||||||
Interest on deposits:
|
|
|
|
|
|
|
|
||||||||
Savings, NOW and money market
|
38,020
|
|
|
24,756
|
|
|
74,303
|
|
|
47,073
|
|
||||
Time
|
40,331
|
|
|
16,635
|
|
|
78,502
|
|
|
31,251
|
|
||||
Interest on short-term borrowings
|
14,860
|
|
|
10,913
|
|
|
27,409
|
|
|
16,645
|
|
||||
Interest on long-term borrowings and junior subordinated debentures
|
14,297
|
|
|
17,062
|
|
|
28,870
|
|
|
34,294
|
|
||||
Total interest expense
|
107,508
|
|
|
69,366
|
|
|
209,084
|
|
|
129,263
|
|
||||
Net Interest Income
|
220,234
|
|
|
210,752
|
|
|
438,882
|
|
|
418,350
|
|
||||
Provision for credit losses
|
2,100
|
|
|
7,142
|
|
|
10,100
|
|
|
18,090
|
|
||||
Net Interest Income After Provision for Credit Losses
|
218,134
|
|
|
203,610
|
|
|
428,782
|
|
|
400,260
|
|
||||
Non-Interest Income
|
|
|
|
|
|
|
|
||||||||
Trust and investment services
|
3,096
|
|
|
3,262
|
|
|
6,000
|
|
|
6,492
|
|
||||
Insurance commissions
|
2,649
|
|
|
4,026
|
|
|
5,174
|
|
|
7,847
|
|
||||
Service charges on deposit accounts
|
5,827
|
|
|
6,679
|
|
|
11,730
|
|
|
13,932
|
|
||||
Gains (losses) on securities transactions, net
|
11
|
|
|
(36
|
)
|
|
(21
|
)
|
|
(801
|
)
|
||||
Other-than-temporary impairment losses on securities
|
(2,928
|
)
|
|
—
|
|
|
(2,928
|
)
|
|
—
|
|
||||
Portion recognized in other comprehensive income (before taxes)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net impairment losses on securities recognized in earnings
|
(2,928
|
)
|
|
—
|
|
|
(2,928
|
)
|
|
—
|
|
||||
Fees from loan servicing
|
2,367
|
|
|
2,045
|
|
|
4,797
|
|
|
4,268
|
|
||||
Gains on sales of loans, net
|
3,930
|
|
|
7,642
|
|
|
8,506
|
|
|
14,395
|
|
||||
(Losses) gains on sales of assets, net
|
(564
|
)
|
|
(125
|
)
|
|
77,156
|
|
|
(222
|
)
|
||||
Bank owned life insurance
|
2,205
|
|
|
2,652
|
|
|
4,092
|
|
|
4,415
|
|
||||
Other
|
11,010
|
|
|
11,924
|
|
|
20,770
|
|
|
19,994
|
|
||||
Total non-interest income
|
27,603
|
|
|
38,069
|
|
|
135,276
|
|
|
70,320
|
|
||||
Non-Interest Expense
|
|
|
|
|
|
|
|
||||||||
Salary and employee benefits expense
|
76,183
|
|
|
78,944
|
|
|
159,288
|
|
|
172,236
|
|
||||
Net occupancy and equipment expense
|
29,700
|
|
|
26,901
|
|
|
57,586
|
|
|
54,825
|
|
||||
FDIC insurance assessment
|
4,931
|
|
|
8,044
|
|
|
11,052
|
|
|
13,542
|
|
||||
Amortization of other intangible assets
|
4,170
|
|
|
4,617
|
|
|
8,481
|
|
|
8,910
|
|
||||
Professional and legal fees
|
4,145
|
|
|
5,337
|
|
|
9,416
|
|
|
22,384
|
|
||||
Amortization of tax credit investments
|
4,863
|
|
|
4,470
|
|
|
12,036
|
|
|
9,744
|
|
||||
Telecommunication expense
|
2,351
|
|
|
3,015
|
|
|
4,619
|
|
|
6,609
|
|
||||
Other
|
15,394
|
|
|
18,588
|
|
|
27,054
|
|
|
35,418
|
|
||||
Total non-interest expense
|
141,737
|
|
|
149,916
|
|
|
289,532
|
|
|
323,668
|
|
||||
Income Before Income Taxes
|
104,000
|
|
|
91,763
|
|
|
274,526
|
|
|
146,912
|
|
||||
Income tax expense
|
27,532
|
|
|
18,961
|
|
|
84,728
|
|
|
32,145
|
|
||||
Net Income
|
76,468
|
|
|
72,802
|
|
|
189,798
|
|
|
114,767
|
|
||||
Dividends on preferred stock
|
3,172
|
|
|
3,172
|
|
|
6,344
|
|
|
6,344
|
|
||||
Net Income Available to Common Shareholders
|
$
|
73,296
|
|
|
$
|
69,630
|
|
|
$
|
183,454
|
|
|
$
|
108,423
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
76,468
|
|
|
$
|
72,802
|
|
|
$
|
189,798
|
|
|
$
|
114,767
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
||||||||
Unrealized gains and losses on available for sale securities
|
|
|
|
|
|
|
|
||||||||
Net gains (losses) arising during the period
|
18,488
|
|
|
(6,249
|
)
|
|
34,755
|
|
|
(27,446
|
)
|
||||
Less reclassification adjustment for net (gains) losses included in net income
|
(8
|
)
|
|
42
|
|
|
18
|
|
|
574
|
|
||||
Total
|
18,480
|
|
|
(6,207
|
)
|
|
34,773
|
|
|
(26,872
|
)
|
||||
Unrealized gains and losses on derivatives (cash flow hedges)
|
|
|
|
|
|
|
|
||||||||
Net (losses) gains on derivatives arising during the period
|
(683
|
)
|
|
455
|
|
|
(1,065
|
)
|
|
2,415
|
|
||||
Less reclassification adjustment for net losses included in net income
|
274
|
|
|
619
|
|
|
482
|
|
|
1,655
|
|
||||
Total
|
(409
|
)
|
|
1,074
|
|
|
(583
|
)
|
|
4,070
|
|
||||
Defined benefit pension plan
|
|
|
|
|
|
|
|
||||||||
Amortization of net loss
|
55
|
|
|
112
|
|
|
110
|
|
|
224
|
|
||||
Total other comprehensive income (loss)
|
18,126
|
|
|
(5,021
|
)
|
|
34,300
|
|
|
(22,578
|
)
|
||||
Total comprehensive income
|
$
|
94,594
|
|
|
$
|
67,781
|
|
|
$
|
224,098
|
|
|
$
|
92,189
|
|
|
|
|
Common Stock
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|||||||||||||||||
|
Preferred Stock
|
|
Shares
|
|
Amount
|
|
Surplus
|
|
Retained
Earnings
|
|
Other
Comprehensive
Loss
|
|
Treasury
Stock
|
|
Total
Shareholders’
Equity
|
|||||||||||||||
|
($ in thousands)
|
|||||||||||||||||||||||||||||
Balance - December 31, 2018
|
$
|
209,691
|
|
|
331,431
|
|
|
$
|
116,240
|
|
|
$
|
2,796,499
|
|
|
$
|
299,642
|
|
|
$
|
(69,431
|
)
|
|
$
|
(2,187
|
)
|
|
$
|
3,350,454
|
|
Adjustment due to the adoption of ASU No. 2016-02
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,414
|
|
|
—
|
|
|
—
|
|
|
4,414
|
|
|||||||
Adjustment due to the adoption of ASU No. 2017-08
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,446
|
)
|
|
—
|
|
|
—
|
|
|
(1,446
|
)
|
|||||||
Balance - January 1, 2019
|
209,691
|
|
|
331,431
|
|
|
116,240
|
|
|
2,796,499
|
|
|
302,610
|
|
|
(69,431
|
)
|
|
(2,187
|
)
|
|
3,353,422
|
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
113,330
|
|
|
—
|
|
|
—
|
|
|
113,330
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,174
|
|
|
—
|
|
|
16,174
|
|
|||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Preferred stock, Series A, $0.39 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,797
|
)
|
|
—
|
|
|
—
|
|
|
(1,797
|
)
|
|||||||
Preferred stock, Series B, $0.34 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,375
|
)
|
|
—
|
|
|
—
|
|
|
(1,375
|
)
|
|||||||
Common stock, $0.11 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36,686
|
)
|
|
—
|
|
|
—
|
|
|
(36,686
|
)
|
|||||||
Effect of stock incentive plan, net
|
—
|
|
|
302
|
|
|
226
|
|
|
2,935
|
|
|
(99
|
)
|
|
—
|
|
|
(1,251
|
)
|
|
1,811
|
|
|||||||
Balance - March 31, 2019
|
209,691
|
|
|
331,733
|
|
|
116,466
|
|
|
2,799,434
|
|
|
375,983
|
|
|
(53,257
|
)
|
|
(3,438
|
)
|
|
3,444,879
|
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
76,468
|
|
|
—
|
|
|
—
|
|
|
76,468
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,126
|
|
|
—
|
|
|
18,126
|
|
|||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Preferred stock, Series A, $0.39 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,797
|
)
|
|
—
|
|
|
—
|
|
|
(1,797
|
)
|
|||||||
Preferred stock, Series B, $0.34 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,375
|
)
|
|
—
|
|
|
—
|
|
|
(1,375
|
)
|
|||||||
Common stock, $0.11 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36,712
|
)
|
|
—
|
|
|
—
|
|
|
(36,712
|
)
|
|||||||
Effect of stock incentive plan, net
|
—
|
|
|
55
|
|
|
105
|
|
|
4,625
|
|
|
(377
|
)
|
|
—
|
|
|
176
|
|
|
4,529
|
|
|||||||
Balance - June 30, 2019
|
$
|
209,691
|
|
|
331,788
|
|
|
$
|
116,571
|
|
|
$
|
2,804,059
|
|
|
$
|
412,190
|
|
|
$
|
(35,131
|
)
|
|
$
|
(3,262
|
)
|
|
$
|
3,504,118
|
|
|
|
|
Common Stock
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|||||||||||||||||
|
Preferred Stock
|
|
Shares
|
|
Amount
|
|
Surplus
|
|
Retained
Earnings
|
|
Other
Comprehensive
Loss
|
|
Treasury
Stock
|
|
Total
Shareholders’
Equity
|
|||||||||||||||
|
($ in thousands)
|
|||||||||||||||||||||||||||||
Balance - December 31, 2017
|
$
|
209,691
|
|
|
264,469
|
|
|
$
|
92,727
|
|
|
$
|
2,060,356
|
|
|
$
|
216,733
|
|
|
$
|
(46,005
|
)
|
|
$
|
(337
|
)
|
|
$
|
2,533,165
|
|
Reclassification due to the adoption of ASU No. 2016-01
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
480
|
|
|
(480
|
)
|
|
—
|
|
|
—
|
|
|||||||
Reclassification due to the adoption of ASU No. 2017-12
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
(61
|
)
|
|
—
|
|
|
—
|
|
|||||||
Adjustment due to the adoption of ASU No. 2016-16
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,611
|
)
|
|
—
|
|
|
—
|
|
|
(17,611
|
)
|
|||||||
Balance - January 1, 2018
|
209,691
|
|
|
264,469
|
|
|
92,727
|
|
|
2,060,356
|
|
|
199,663
|
|
|
(46,546
|
)
|
|
(337
|
)
|
|
2,515,554
|
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41,965
|
|
|
—
|
|
|
—
|
|
|
41,965
|
|
|||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,557
|
)
|
|
—
|
|
|
(17,557
|
)
|
|||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Preferred stock, Series A, $0.39 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,797
|
)
|
|
—
|
|
|
—
|
|
|
(1,797
|
)
|
|||||||
Preferred stock, Series B, $0.34 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,375
|
)
|
|
—
|
|
|
—
|
|
|
(1,375
|
)
|
|||||||
Common stock, $0.11 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36,635
|
)
|
|
—
|
|
|
—
|
|
|
(36,635
|
)
|
|||||||
Effect of stock incentive plan, net
|
—
|
|
|
1,714
|
|
|
355
|
|
|
8,717
|
|
|
(2,266
|
)
|
|
—
|
|
|
(169
|
)
|
|
6,637
|
|
|||||||
Common stock issued
|
—
|
|
|
65,007
|
|
|
22,742
|
|
|
715,121
|
|
|
—
|
|
|
—
|
|
|
348
|
|
|
738,211
|
|
|||||||
Balance - March 31, 2018
|
209,691
|
|
|
331,190
|
|
|
115,824
|
|
|
2,784,194
|
|
|
199,555
|
|
|
(64,103
|
)
|
|
(158
|
)
|
|
3,245,003
|
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
72,802
|
|
|
—
|
|
|
—
|
|
|
72,802
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,021
|
)
|
|
—
|
|
|
(5,021
|
)
|
|||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Preferred stock, Series A, $0.39 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,797
|
)
|
|
—
|
|
|
—
|
|
|
(1,797
|
)
|
|||||||
Preferred stock, Series B, $0.34 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,375
|
)
|
|
—
|
|
|
—
|
|
|
(1,375
|
)
|
|||||||
Common stock, $0.11 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36,534
|
)
|
|
—
|
|
|
—
|
|
|
(36,534
|
)
|
|||||||
Effect of stock incentive plan, net
|
—
|
|
|
264
|
|
|
203
|
|
|
4,996
|
|
|
(58
|
)
|
|
—
|
|
|
(907
|
)
|
|
4,234
|
|
|||||||
Balance - June 30, 2018
|
$
|
209,691
|
|
|
331,454
|
|
|
$
|
116,027
|
|
|
$
|
2,789,190
|
|
|
$
|
232,593
|
|
|
$
|
(69,124
|
)
|
|
$
|
(1,065
|
)
|
|
$
|
3,277,312
|
|
|
Six Months Ended
June 30, |
||||||
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
189,798
|
|
|
$
|
114,767
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
25,240
|
|
|
13,783
|
|
||
Stock-based compensation
|
8,282
|
|
|
12,153
|
|
||
Provision for credit losses
|
10,100
|
|
|
18,090
|
|
||
Net amortization of premiums and accretion of discounts on securities and borrowings
|
14,287
|
|
|
17,212
|
|
||
Amortization of other intangible assets
|
8,481
|
|
|
8,910
|
|
||
Losses on securities transactions, net
|
21
|
|
|
801
|
|
||
Proceeds from sales of loans held for sale
|
421,730
|
|
|
437,876
|
|
||
Gains on sales of loans, net
|
(8,506
|
)
|
|
(14,395
|
)
|
||
Net impairment losses on securities, recognized in earnings
|
2,928
|
|
|
—
|
|
||
Originations of loans held for sale
|
(200,877
|
)
|
|
(446,849
|
)
|
||
(Gains) losses on sales of assets, net
|
(77,156
|
)
|
|
222
|
|
||
Net change in:
|
|
|
|
||||
Cash surrender value of bank owned life insurance
|
(4,092
|
)
|
|
(4,415
|
)
|
||
Accrued interest receivable
|
(3,769
|
)
|
|
(2,042
|
)
|
||
Other assets
|
(186,674
|
)
|
|
(55,464
|
)
|
||
Accrued expenses and other liabilities
|
65,970
|
|
|
(16,281
|
)
|
||
Net cash provided by operating activities
|
265,763
|
|
|
84,368
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Net loan originations and purchases
|
(992,236
|
)
|
|
(1,158,514
|
)
|
||
Investment securities held to maturity:
|
|
|
|
||||
Purchases
|
(261,446
|
)
|
|
(100,160
|
)
|
||
Maturities, calls and principal repayments
|
155,002
|
|
|
120,876
|
|
||
Investment securities available for sale:
|
|
|
|
||||
Purchases
|
—
|
|
|
(239,226
|
)
|
||
Sales
|
—
|
|
|
38,625
|
|
||
Maturities, calls and principal repayments
|
109,045
|
|
|
124,635
|
|
||
Death benefit proceeds from bank owned life insurance
|
1,350
|
|
|
2,652
|
|
||
Proceeds from sales of real estate property and equipment
|
102,500
|
|
|
9,773
|
|
||
Purchases of real estate property and equipment
|
(9,336
|
)
|
|
(12,811
|
)
|
||
Cash and cash equivalents acquired in acquisition
|
—
|
|
|
156,612
|
|
||
Net cash used in investing activities
|
(895,121
|
)
|
|
(1,057,538
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Net change in deposits
|
320,955
|
|
|
(77,533
|
)
|
||
Net change in short-term borrowings
|
268,870
|
|
|
1,479,305
|
|
||
Advances of long-term borrowings
|
400,000
|
|
|
—
|
|
||
Repayments of long-term borrowings
|
(255,000
|
)
|
|
(300,027
|
)
|
||
Cash dividends paid to preferred shareholders
|
(3,172
|
)
|
|
(6,344
|
)
|
||
Cash dividends paid to common shareholders
|
(73,546
|
)
|
|
(65,989
|
)
|
||
Purchase of common shares to treasury
|
(1,462
|
)
|
|
(2,598
|
)
|
||
Common stock issued, net
|
(480
|
)
|
|
2,512
|
|
||
Other, net
|
(240
|
)
|
|
—
|
|
||
Net cash provided by financing activities
|
655,925
|
|
|
1,029,326
|
|
||
Net change in cash and cash equivalents
|
26,567
|
|
|
56,156
|
|
||
Cash and cash equivalents at beginning of year
|
428,629
|
|
|
416,110
|
|
||
Cash and cash equivalents at end of period
|
$
|
455,196
|
|
|
$
|
472,266
|
|
VALLEY NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(in thousands)
|
|||||||
|
Six Months Ended
June 30, |
||||||
|
2019
|
|
2018
|
||||
Supplemental disclosures of cash flow information:
|
|
|
|
||||
Cash payments for:
|
|
|
|
||||
Interest on deposits and borrowings
|
$
|
198,815
|
|
|
$
|
124,816
|
|
Federal and state income taxes
|
80,116
|
|
|
29,280
|
|
||
Supplemental schedule of non-cash investing activities:
|
|
|
|
||||
Transfer of loans to other real estate owned
|
$
|
1,016
|
|
|
$
|
672
|
|
Transfer of loans to loans held for sale
|
216,211
|
|
|
263,324
|
|
||
Lease right of use assets obtained in exchange for operating lease liabilities
|
296,064
|
|
|
—
|
|
||
Acquisition:
|
|
|
|
||||
Non-cash assets acquired:
|
|
|
|
||||
Investment securities held to maturity
|
$
|
—
|
|
|
$
|
214,217
|
|
Investment securities available for sale
|
—
|
|
|
308,385
|
|
||
Loans
|
—
|
|
|
3,736,984
|
|
||
Premises and equipment
|
—
|
|
|
62,066
|
|
||
Bank owned life insurance
|
—
|
|
|
49,052
|
|
||
Accrued interest receivable
|
—
|
|
|
12,123
|
|
||
Goodwill
|
—
|
|
|
394,028
|
|
||
Other intangible assets
|
—
|
|
|
45,906
|
|
||
Other assets
|
—
|
|
|
100,059
|
|
||
Total non-cash assets acquired
|
$
|
—
|
|
|
$
|
4,922,820
|
|
Liabilities assumed:
|
|
|
|
||||
Deposits
|
$
|
—
|
|
|
$
|
3,564,843
|
|
Short-term borrowings
|
—
|
|
|
649,979
|
|
||
Long-term borrowings
|
—
|
|
|
87,283
|
|
||
Junior subordinated debentures issued to capital trusts
|
—
|
|
|
13,249
|
|
||
Accrued expenses and other liabilities
|
—
|
|
|
26,848
|
|
||
Total liabilities assumed
|
—
|
|
|
4,342,202
|
|
||
Net non-cash assets acquired
|
$
|
—
|
|
|
$
|
580,618
|
|
Net cash and cash equivalents acquired in acquisition
|
$
|
—
|
|
|
$
|
156,612
|
|
Common stock issued in acquisition
|
$
|
—
|
|
|
$
|
737,230
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in thousands, except for share data)
|
||||||||||||||
Net income available to common shareholders
|
$
|
73,296
|
|
|
$
|
69,630
|
|
|
$
|
183,454
|
|
|
$
|
108,423
|
|
Basic weighted average number of common shares outstanding
|
331,748,552
|
|
|
331,318,381
|
|
|
331,675,313
|
|
|
331,024,531
|
|
||||
Plus: Common stock equivalents
|
1,211,250
|
|
|
1,577,102
|
|
|
1,254,046
|
|
|
1,575,460
|
|
||||
Diluted weighted average number of common shares outstanding
|
332,959,802
|
|
|
332,895,483
|
|
|
332,929,359
|
|
|
332,599,991
|
|
||||
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.22
|
|
|
$
|
0.21
|
|
|
$
|
0.55
|
|
|
$
|
0.33
|
|
Diluted
|
0.22
|
|
|
0.21
|
|
|
0.55
|
|
|
0.33
|
|
|
Components of Accumulated Other Comprehensive Loss
|
|
Total
Accumulated
Other
Comprehensive
Loss
|
||||||||||||
|
Unrealized Gains
and Losses on
Available for Sale
(AFS) Securities
|
|
Unrealized Gains
and (Losses) on
Derivatives
|
|
Defined
Benefit
Pension Plan
|
|
|||||||||
|
(in thousands)
|
||||||||||||||
Balance at March 31, 2019
|
$
|
(17,266
|
)
|
|
$
|
(4,205
|
)
|
|
$
|
(31,786
|
)
|
|
$
|
(53,257
|
)
|
Other comprehensive income (loss) before reclassification
|
18,488
|
|
|
(683
|
)
|
|
—
|
|
|
17,805
|
|
||||
Amounts reclassified from other comprehensive income (loss)
|
(8
|
)
|
|
274
|
|
|
55
|
|
|
321
|
|
||||
Other comprehensive income (loss), net
|
18,480
|
|
|
(409
|
)
|
|
55
|
|
|
18,126
|
|
||||
Balance at June 30, 2019
|
$
|
1,214
|
|
|
$
|
(4,614
|
)
|
|
$
|
(31,731
|
)
|
|
$
|
(35,131
|
)
|
|
Components of Accumulated Other Comprehensive Loss
|
|
Total
Accumulated
Other
Comprehensive
Loss
|
||||||||||||
|
Unrealized Gains
and Losses on
Available for Sale
(AFS) Securities
|
|
Unrealized Gains
and (Losses) on
Derivatives
|
|
Defined
Benefit
Pension Plan
|
|
|||||||||
|
(in thousands)
|
||||||||||||||
Balance at December 31, 2018
|
$
|
(33,559
|
)
|
|
$
|
(4,031
|
)
|
|
$
|
(31,841
|
)
|
|
$
|
(69,431
|
)
|
Other comprehensive income (loss) before reclassification
|
34,755
|
|
|
(1,065
|
)
|
|
—
|
|
|
33,690
|
|
||||
Amounts reclassified from other comprehensive income (loss)
|
18
|
|
|
482
|
|
|
110
|
|
|
610
|
|
||||
Other comprehensive income (loss), net
|
34,773
|
|
|
(583
|
)
|
|
110
|
|
|
34,300
|
|
||||
Balance at June 30, 2019
|
$
|
1,214
|
|
|
$
|
(4,614
|
)
|
|
$
|
(31,731
|
)
|
|
$
|
(35,131
|
)
|
|
|
Amounts Reclassified from
Accumulated Other Comprehensive Loss
|
|
|
||||||||||||||
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
|
||||||||||||
Components of Accumulated Other Comprehensive Loss
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Income Statement Line Item
|
||||||||
|
|
(in thousands)
|
|
|
||||||||||||||
Unrealized gains (losses) on AFS securities before tax
|
|
$
|
11
|
|
|
$
|
(52
|
)
|
|
$
|
(21
|
)
|
|
$
|
(795
|
)
|
|
Gains (losses) on securities transactions, net
|
Tax effect
|
|
(3
|
)
|
|
10
|
|
|
3
|
|
|
221
|
|
|
|
||||
Total net of tax
|
|
8
|
|
|
(42
|
)
|
|
(18
|
)
|
|
(574
|
)
|
|
|
||||
Unrealized losses on derivatives (cash flow hedges) before tax
|
|
(383
|
)
|
|
(866
|
)
|
|
(673
|
)
|
|
(2,317
|
)
|
|
Interest expense
|
||||
Tax effect
|
|
109
|
|
|
247
|
|
|
191
|
|
|
662
|
|
|
|
||||
Total net of tax
|
|
(274
|
)
|
|
(619
|
)
|
|
(482
|
)
|
|
(1,655
|
)
|
|
|
||||
Defined benefit pension plan:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of net loss
|
|
(78
|
)
|
|
(157
|
)
|
|
(156
|
)
|
|
(314
|
)
|
|
*
|
||||
Tax effect
|
|
23
|
|
|
45
|
|
|
46
|
|
|
90
|
|
|
|
||||
Total net of tax
|
|
(55
|
)
|
|
(112
|
)
|
|
(110
|
)
|
|
(224
|
)
|
|
|
||||
Total reclassifications, net of tax
|
|
$
|
(321
|
)
|
|
$
|
(773
|
)
|
|
$
|
(610
|
)
|
|
$
|
(2,453
|
)
|
|
|
|
*
|
Amortization of net loss is included in the computation of net periodic pension cost recognized within other non-interest expense.
|
•
|
Level 1 - Unadjusted exchange quoted prices in active markets for identical assets or liabilities, or identical liabilities traded as assets that the reporting entity has the ability to access at the measurement date.
|
•
|
Level 2 - Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly (i.e., quoted prices on similar assets) for substantially the full term of the asset or liability.
|
•
|
Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
|
|
(1)
|
Represents residential mortgage loans originated for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $35.6 million and $34.6 million at June 30, 2019 and December 31, 2018, respectively.
|
(2)
|
Derivative financial instruments are included in this category.
|
(3)
|
Excludes PCI loans.
|
|
Fair Value
Hierarchy
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||||
|
|
|
(in thousands)
|
||||||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and due from banks
|
Level 1
|
|
$
|
276,291
|
|
|
$
|
276,291
|
|
|
$
|
251,541
|
|
|
$
|
251,541
|
|
Interest bearing deposits with banks
|
Level 1
|
|
178,905
|
|
|
178,905
|
|
|
177,088
|
|
|
177,088
|
|
||||
Investment securities held to maturity:
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
Level 1
|
|
138,436
|
|
|
144,655
|
|
|
138,517
|
|
|
142,049
|
|
||||
U.S. government agency securities
|
Level 2
|
|
8,049
|
|
|
8,092
|
|
|
8,721
|
|
|
8,641
|
|
||||
Obligations of states and political subdivisions
|
Level 2
|
|
536,778
|
|
|
549,050
|
|
|
585,656
|
|
|
586,033
|
|
||||
Residential mortgage-backed securities
|
Level 2
|
|
1,415,409
|
|
|
1,419,066
|
|
|
1,266,770
|
|
|
1,235,605
|
|
||||
Trust preferred securities
|
Level 2
|
|
37,314
|
|
|
31,372
|
|
|
37,332
|
|
|
31,486
|
|
||||
Corporate and other debt securities
|
Level 2
|
|
32,250
|
|
|
32,557
|
|
|
31,250
|
|
|
31,129
|
|
||||
Total investment securities held to maturity
|
|
|
2,168,236
|
|
|
2,184,792
|
|
|
2,068,246
|
|
|
2,034,943
|
|
||||
Net loans
|
Level 3
|
|
25,647,057
|
|
|
25,207,831
|
|
|
24,883,610
|
|
|
24,068,755
|
|
||||
Accrued interest receivable
|
Level 1
|
|
99,065
|
|
|
99,065
|
|
|
95,296
|
|
|
95,296
|
|
||||
Federal Reserve Bank and Federal Home Loan Bank stock (1)
|
Level 1
|
|
260,490
|
|
|
260,490
|
|
|
232,080
|
|
|
232,080
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||||
Deposits without stated maturities
|
Level 1
|
|
17,435,741
|
|
|
17,435,741
|
|
|
17,388,990
|
|
|
17,388,990
|
|
||||
Deposits with stated maturities
|
Level 2
|
|
7,338,188
|
|
|
7,338,945
|
|
|
7,063,984
|
|
|
7,005,573
|
|
||||
Short-term borrowings
|
Level 1
|
|
2,387,784
|
|
|
2,388,299
|
|
|
2,118,914
|
|
|
2,091,892
|
|
||||
Long-term borrowings
|
Level 2
|
|
1,800,182
|
|
|
1,840,862
|
|
|
1,654,268
|
|
|
1,751,194
|
|
||||
Junior subordinated debentures issued to capital trusts
|
Level 2
|
|
55,544
|
|
|
57,040
|
|
|
55,370
|
|
|
55,692
|
|
||||
Accrued interest payable (2)
|
Level 1
|
|
36,031
|
|
|
36,031
|
|
|
25,762
|
|
|
25,762
|
|
|
(1)
|
Included in other assets.
|
(2)
|
Included in accrued expenses and other liabilities.
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
|
(in thousands)
|
||||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
138,436
|
|
|
$
|
6,219
|
|
|
$
|
—
|
|
|
$
|
144,655
|
|
U.S. government agency securities
|
8,049
|
|
|
69
|
|
|
(26
|
)
|
|
8,092
|
|
||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
||||||||
Obligations of states and state agencies
|
314,878
|
|
|
7,680
|
|
|
(992
|
)
|
|
321,566
|
|
||||
Municipal bonds
|
221,900
|
|
|
5,640
|
|
|
(56
|
)
|
|
227,484
|
|
||||
Total obligations of states and political subdivisions
|
536,778
|
|
|
13,320
|
|
|
(1,048
|
)
|
|
549,050
|
|
||||
Residential mortgage-backed securities
|
1,415,409
|
|
|
13,242
|
|
|
(9,585
|
)
|
|
1,419,066
|
|
||||
Trust preferred securities
|
37,314
|
|
|
62
|
|
|
(6,004
|
)
|
|
31,372
|
|
||||
Corporate and other debt securities
|
32,250
|
|
|
399
|
|
|
(92
|
)
|
|
32,557
|
|
||||
Total investment securities held to maturity
|
$
|
2,168,236
|
|
|
$
|
33,311
|
|
|
$
|
(16,755
|
)
|
|
$
|
2,184,792
|
|
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
138,517
|
|
|
$
|
3,532
|
|
|
$
|
—
|
|
|
$
|
142,049
|
|
U.S. government agency securities
|
8,721
|
|
|
55
|
|
|
(135
|
)
|
|
8,641
|
|
||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
||||||||
Obligations of states and state agencies
|
341,702
|
|
|
4,332
|
|
|
(5,735
|
)
|
|
340,299
|
|
||||
Municipal bonds
|
243,954
|
|
|
3,141
|
|
|
(1,361
|
)
|
|
245,734
|
|
||||
Total obligations of states and political subdivisions
|
585,656
|
|
|
7,473
|
|
|
(7,096
|
)
|
|
586,033
|
|
||||
Residential mortgage-backed securities
|
1,266,770
|
|
|
3,203
|
|
|
(34,368
|
)
|
|
1,235,605
|
|
||||
Trust preferred securities
|
37,332
|
|
|
77
|
|
|
(5,923
|
)
|
|
31,486
|
|
||||
Corporate and other debt securities
|
31,250
|
|
|
96
|
|
|
(217
|
)
|
|
31,129
|
|
||||
Total investment securities held to maturity
|
$
|
2,068,246
|
|
|
$
|
14,436
|
|
|
$
|
(47,739
|
)
|
|
$
|
2,034,943
|
|
|
Less than
Twelve Months
|
|
More than
Twelve Months
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agency securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,675
|
|
|
$
|
(26
|
)
|
|
$
|
5,675
|
|
|
$
|
(26
|
)
|
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and state agencies
|
—
|
|
|
—
|
|
|
45,843
|
|
|
(992
|
)
|
|
45,843
|
|
|
(992
|
)
|
||||||
Municipal bonds
|
4,968
|
|
|
(27
|
)
|
|
4,331
|
|
|
(29
|
)
|
|
9,299
|
|
|
(56
|
)
|
||||||
Total obligations of states and political subdivisions
|
4,968
|
|
|
(27
|
)
|
|
50,174
|
|
|
(1,021
|
)
|
|
55,142
|
|
|
(1,048
|
)
|
||||||
Residential mortgage-backed securities
|
3,445
|
|
|
(7
|
)
|
|
674,804
|
|
|
(9,578
|
)
|
|
678,249
|
|
|
(9,585
|
)
|
||||||
Trust preferred securities
|
—
|
|
|
—
|
|
|
29,957
|
|
|
(6,004
|
)
|
|
29,957
|
|
|
(6,004
|
)
|
||||||
Corporate and other debt securities
|
—
|
|
|
—
|
|
|
4,908
|
|
|
(92
|
)
|
|
4,908
|
|
|
(92
|
)
|
||||||
Total
|
$
|
8,413
|
|
|
$
|
(34
|
)
|
|
$
|
765,518
|
|
|
$
|
(16,721
|
)
|
|
$
|
773,931
|
|
|
$
|
(16,755
|
)
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agency securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,074
|
|
|
$
|
(135
|
)
|
|
$
|
6,074
|
|
|
$
|
(135
|
)
|
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and state agencies
|
16,098
|
|
|
(266
|
)
|
|
138,437
|
|
|
(5,469
|
)
|
|
154,535
|
|
|
(5,735
|
)
|
||||||
Municipal bonds
|
3,335
|
|
|
(37
|
)
|
|
60,078
|
|
|
(1,324
|
)
|
|
63,413
|
|
|
(1,361
|
)
|
||||||
Total obligations of states and political subdivisions
|
19,433
|
|
|
(303
|
)
|
|
198,515
|
|
|
(6,793
|
)
|
|
217,948
|
|
|
(7,096
|
)
|
||||||
Residential mortgage-backed securities
|
72,240
|
|
|
(852
|
)
|
|
846,671
|
|
|
(33,516
|
)
|
|
918,911
|
|
|
(34,368
|
)
|
||||||
Trust preferred securities
|
—
|
|
|
—
|
|
|
30,055
|
|
|
(5,923
|
)
|
|
30,055
|
|
|
(5,923
|
)
|
||||||
Corporate and other debt securities
|
9,948
|
|
|
(52
|
)
|
|
4,835
|
|
|
(165
|
)
|
|
14,783
|
|
|
(217
|
)
|
||||||
Total
|
$
|
101,621
|
|
|
$
|
(1,207
|
)
|
|
$
|
1,086,150
|
|
|
$
|
(46,532
|
)
|
|
$
|
1,187,771
|
|
|
$
|
(47,739
|
)
|
|
June 30, 2019
|
||||||
|
Amortized
Cost
|
|
Fair
Value
|
||||
|
(in thousands)
|
||||||
Due in one year
|
$
|
30,122
|
|
|
$
|
30,109
|
|
Due after one year through five years
|
237,783
|
|
|
243,951
|
|
||
Due after five years through ten years
|
242,178
|
|
|
253,387
|
|
||
Due after ten years
|
242,744
|
|
|
238,279
|
|
||
Residential mortgage-backed securities
|
1,415,409
|
|
|
1,419,066
|
|
||
Total investment securities held to maturity
|
$
|
2,168,236
|
|
|
$
|
2,184,792
|
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
|
(in thousands)
|
||||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
50,963
|
|
|
$
|
—
|
|
|
$
|
(222
|
)
|
|
$
|
50,741
|
|
U.S. government agency securities
|
32,525
|
|
|
521
|
|
|
(18
|
)
|
|
33,028
|
|
||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
||||||||
Obligations of states and state agencies
|
87,473
|
|
|
465
|
|
|
(222
|
)
|
|
87,716
|
|
||||
Municipal bonds
|
98,305
|
|
|
899
|
|
|
(223
|
)
|
|
98,981
|
|
||||
Total obligations of states and political subdivisions
|
185,778
|
|
|
1,364
|
|
|
(445
|
)
|
|
186,697
|
|
||||
Residential mortgage-backed securities
|
1,373,033
|
|
|
8,303
|
|
|
(8,357
|
)
|
|
1,372,979
|
|
||||
Corporate and other debt securities
|
35,416
|
|
|
489
|
|
|
—
|
|
|
35,905
|
|
||||
Total investment securities available for sale
|
$
|
1,677,715
|
|
|
$
|
10,677
|
|
|
$
|
(9,042
|
)
|
|
$
|
1,679,350
|
|
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
50,975
|
|
|
$
|
—
|
|
|
$
|
(1,669
|
)
|
|
$
|
49,306
|
|
U.S. government agency securities
|
36,844
|
|
|
71
|
|
|
(638
|
)
|
|
36,277
|
|
||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
||||||||
Obligations of states and state agencies
|
100,777
|
|
|
18
|
|
|
(3,682
|
)
|
|
97,113
|
|
||||
Municipal bonds
|
101,207
|
|
|
209
|
|
|
(1,437
|
)
|
|
99,979
|
|
||||
Total obligations of states and political subdivisions
|
201,984
|
|
|
227
|
|
|
(5,119
|
)
|
|
197,092
|
|
||||
Residential mortgage-backed securities
|
1,469,059
|
|
|
1,484
|
|
|
(40,761
|
)
|
|
1,429,782
|
|
||||
Corporate and other debt securities
|
37,542
|
|
|
213
|
|
|
(668
|
)
|
|
37,087
|
|
||||
Total investment securities available for sale
|
$
|
1,796,404
|
|
|
$
|
1,995
|
|
|
$
|
(48,855
|
)
|
|
$
|
1,749,544
|
|
|
Less than
Twelve Months
|
|
More than
Twelve Months
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50,741
|
|
|
$
|
(222
|
)
|
|
$
|
50,741
|
|
|
$
|
(222
|
)
|
U.S. government agency securities
|
—
|
|
|
—
|
|
|
2,488
|
|
|
(18
|
)
|
|
2,488
|
|
|
(18
|
)
|
||||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and state agencies
|
—
|
|
|
—
|
|
|
43,868
|
|
|
(222
|
)
|
|
43,868
|
|
|
(222
|
)
|
||||||
Municipal bonds
|
1,986
|
|
|
(34
|
)
|
|
20,335
|
|
|
(189
|
)
|
|
22,321
|
|
|
(223
|
)
|
||||||
Total obligations of states and political subdivisions
|
1,986
|
|
|
(34
|
)
|
|
64,203
|
|
|
(411
|
)
|
|
66,189
|
|
|
(445
|
)
|
||||||
Residential mortgage-backed securities
|
220
|
|
|
(3
|
)
|
|
703,691
|
|
|
(8,354
|
)
|
|
703,911
|
|
|
(8,357
|
)
|
||||||
Total
|
$
|
2,206
|
|
|
$
|
(37
|
)
|
|
$
|
821,123
|
|
|
$
|
(9,005
|
)
|
|
$
|
823,329
|
|
|
$
|
(9,042
|
)
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
49,306
|
|
|
$
|
(1,669
|
)
|
|
$
|
49,306
|
|
|
$
|
(1,669
|
)
|
U.S. government agency securities
|
2,120
|
|
|
(20
|
)
|
|
26,775
|
|
|
(618
|
)
|
|
28,895
|
|
|
(638
|
)
|
||||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and state agencies
|
17,560
|
|
|
(95
|
)
|
|
75,718
|
|
|
(3,587
|
)
|
|
93,278
|
|
|
(3,682
|
)
|
||||||
Municipal bonds
|
5,018
|
|
|
(106
|
)
|
|
70,286
|
|
|
(1,331
|
)
|
|
75,304
|
|
|
(1,437
|
)
|
||||||
Total obligations of states and political subdivisions
|
22,578
|
|
|
(201
|
)
|
|
146,004
|
|
|
(4,918
|
)
|
|
168,582
|
|
|
(5,119
|
)
|
||||||
Residential mortgage-backed securities
|
119,645
|
|
|
(668
|
)
|
|
1,221,942
|
|
|
(40,093
|
)
|
|
1,341,587
|
|
|
(40,761
|
)
|
||||||
Corporate and other debt securities
|
12,339
|
|
|
(161
|
)
|
|
12,397
|
|
|
(507
|
)
|
|
24,736
|
|
|
(668
|
)
|
||||||
Total
|
$
|
156,682
|
|
|
$
|
(1,050
|
)
|
|
$
|
1,456,424
|
|
|
$
|
(47,805
|
)
|
|
$
|
1,613,106
|
|
|
$
|
(48,855
|
)
|
|
June 30, 2019
|
||||||
|
Amortized
Cost
|
|
Fair
Value
|
||||
|
(in thousands)
|
||||||
Due in one year
|
$
|
9,121
|
|
|
$
|
9,117
|
|
Due after one year through five years
|
125,530
|
|
|
125,671
|
|
||
Due after five years through ten years
|
66,064
|
|
|
67,046
|
|
||
Due after ten years
|
103,967
|
|
|
104,537
|
|
||
Residential mortgage-backed securities
|
1,373,033
|
|
|
1,372,979
|
|
||
Total investment securities available for sale
|
$
|
1,677,715
|
|
|
$
|
1,679,350
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Non-PCI
Loans
|
|
PCI Loans
|
|
Total
|
|
Non-PCI
Loans
|
|
PCI Loans
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
3,918,894
|
|
|
$
|
696,871
|
|
|
$
|
4,615,765
|
|
|
$
|
3,590,375
|
|
|
$
|
740,657
|
|
|
$
|
4,331,032
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate
|
10,470,127
|
|
|
2,327,890
|
|
|
12,798,017
|
|
|
9,912,309
|
|
|
2,494,966
|
|
|
12,407,275
|
|
||||||
Construction
|
1,288,417
|
|
|
240,551
|
|
|
1,528,968
|
|
|
1,122,348
|
|
|
365,784
|
|
|
1,488,132
|
|
||||||
Total commercial real estate loans
|
11,758,544
|
|
|
2,568,441
|
|
|
14,326,985
|
|
|
11,034,657
|
|
|
2,860,750
|
|
|
13,895,407
|
|
||||||
Residential mortgage
|
3,694,463
|
|
|
377,987
|
|
|
4,072,450
|
|
|
3,682,984
|
|
|
428,416
|
|
|
4,111,400
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity
|
385,987
|
|
|
115,659
|
|
|
501,646
|
|
|
371,340
|
|
|
145,749
|
|
|
517,089
|
|
||||||
Automobile
|
1,362,143
|
|
|
323
|
|
|
1,362,466
|
|
|
1,319,206
|
|
|
365
|
|
|
1,319,571
|
|
||||||
Other consumer
|
910,174
|
|
|
12,676
|
|
|
922,850
|
|
|
846,821
|
|
|
14,149
|
|
|
860,970
|
|
||||||
Total consumer loans
|
2,658,304
|
|
|
128,658
|
|
|
2,786,962
|
|
|
2,537,367
|
|
|
160,263
|
|
|
2,697,630
|
|
||||||
Total loans
|
$
|
22,030,205
|
|
|
$
|
3,771,957
|
|
|
$
|
25,802,162
|
|
|
$
|
20,845,383
|
|
|
$
|
4,190,086
|
|
|
$
|
25,035,469
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in thousands)
|
||||||||||||||
Balance, beginning of period
|
$
|
890,771
|
|
|
$
|
691,086
|
|
|
$
|
875,958
|
|
|
$
|
282,009
|
|
Acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
474,208
|
|
||||
Accretion
|
(55,014
|
)
|
|
(60,536
|
)
|
|
(108,506
|
)
|
|
(125,667
|
)
|
||||
Net increase in expected cash flows
|
18,130
|
|
|
—
|
|
|
86,435
|
|
|
—
|
|
||||
Balance, end of period
|
$
|
853,887
|
|
|
$
|
630,550
|
|
|
$
|
853,887
|
|
|
$
|
630,550
|
|
|
Past Due and Non-Accrual Loans
|
|
|
|
|
||||||||||||||||||||||
|
30-59
Days
Past Due
Loans
|
|
60-89
Days
Past Due
Loans
|
|
Accruing Loans
90 Days or More
Past Due
|
|
Non-Accrual
Loans
|
|
Total
Past Due
Loans
|
|
Current
Non-PCI
Loans
|
|
Total
Non-PCI
Loans
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
14,119
|
|
|
$
|
4,135
|
|
|
$
|
3,298
|
|
|
$
|
76,216
|
|
|
$
|
97,768
|
|
|
$
|
3,821,126
|
|
|
$
|
3,918,894
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate
|
6,202
|
|
|
354
|
|
|
—
|
|
|
6,231
|
|
|
12,787
|
|
|
10,457,340
|
|
|
10,470,127
|
|
|||||||
Construction
|
—
|
|
|
1,342
|
|
|
—
|
|
|
—
|
|
|
1,342
|
|
|
1,287,075
|
|
|
1,288,417
|
|
|||||||
Total commercial real estate loans
|
6,202
|
|
|
1,696
|
|
|
—
|
|
|
6,231
|
|
|
14,129
|
|
|
11,744,415
|
|
|
11,758,544
|
|
|||||||
Residential mortgage
|
19,131
|
|
|
3,635
|
|
|
1,054
|
|
|
12,069
|
|
|
35,889
|
|
|
3,658,574
|
|
|
3,694,463
|
|
|||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
673
|
|
|
82
|
|
|
—
|
|
|
1,630
|
|
|
2,385
|
|
|
383,602
|
|
|
385,987
|
|
|||||||
Automobile
|
7,221
|
|
|
925
|
|
|
328
|
|
|
148
|
|
|
8,622
|
|
|
1,353,521
|
|
|
1,362,143
|
|
|||||||
Other consumer
|
4,038
|
|
|
477
|
|
|
31
|
|
|
221
|
|
|
4,767
|
|
|
905,407
|
|
|
910,174
|
|
|||||||
Total consumer loans
|
11,932
|
|
|
1,484
|
|
|
359
|
|
|
1,999
|
|
|
15,774
|
|
|
2,642,530
|
|
|
2,658,304
|
|
|||||||
Total
|
$
|
51,384
|
|
|
$
|
10,950
|
|
|
$
|
4,711
|
|
|
$
|
96,515
|
|
|
$
|
163,560
|
|
|
$
|
21,866,645
|
|
|
$
|
22,030,205
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
13,085
|
|
|
$
|
3,768
|
|
|
$
|
6,156
|
|
|
$
|
70,096
|
|
|
$
|
93,105
|
|
|
$
|
3,497,270
|
|
|
$
|
3,590,375
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate
|
9,521
|
|
|
530
|
|
|
27
|
|
|
2,372
|
|
|
12,450
|
|
|
9,899,859
|
|
|
9,912,309
|
|
|||||||
Construction
|
2,829
|
|
|
—
|
|
|
—
|
|
|
356
|
|
|
3,185
|
|
|
1,119,163
|
|
|
1,122,348
|
|
|||||||
Total commercial real estate loans
|
12,350
|
|
|
530
|
|
|
27
|
|
|
2,728
|
|
|
15,635
|
|
|
11,019,022
|
|
|
11,034,657
|
|
|||||||
Residential mortgage
|
16,576
|
|
|
2,458
|
|
|
1,288
|
|
|
12,917
|
|
|
33,239
|
|
|
3,649,745
|
|
|
3,682,984
|
|
|||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
872
|
|
|
40
|
|
|
—
|
|
|
2,156
|
|
|
3,068
|
|
|
368,272
|
|
|
371,340
|
|
|||||||
Automobile
|
7,973
|
|
|
1,299
|
|
|
308
|
|
|
80
|
|
|
9,660
|
|
|
1,309,546
|
|
|
1,319,206
|
|
|||||||
Other consumer
|
895
|
|
|
47
|
|
|
33
|
|
|
419
|
|
|
1,394
|
|
|
845,427
|
|
|
846,821
|
|
|||||||
Total consumer loans
|
9,740
|
|
|
1,386
|
|
|
341
|
|
|
2,655
|
|
|
14,122
|
|
|
2,523,245
|
|
|
2,537,367
|
|
|||||||
Total
|
$
|
51,751
|
|
|
$
|
8,142
|
|
|
$
|
7,812
|
|
|
$
|
88,396
|
|
|
$
|
156,101
|
|
|
$
|
20,689,282
|
|
|
$
|
20,845,383
|
|
|
Recorded
Investment
With No Related
Allowance
|
|
Recorded
Investment
With Related
Allowance
|
|
Total
Recorded
Investment
|
|
Unpaid
Contractual
Principal
Balance
|
|
Related
Allowance
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
13,008
|
|
|
$
|
90,018
|
|
|
$
|
103,026
|
|
|
$
|
115,602
|
|
|
$
|
31,128
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
20,707
|
|
|
26,258
|
|
|
46,965
|
|
|
49,067
|
|
|
2,604
|
|
|||||
Construction
|
354
|
|
|
—
|
|
|
354
|
|
|
354
|
|
|
—
|
|
|||||
Total commercial real estate loans
|
21,061
|
|
|
26,258
|
|
|
47,319
|
|
|
49,421
|
|
|
2,604
|
|
|||||
Residential mortgage
|
6,046
|
|
|
6,448
|
|
|
12,494
|
|
|
13,531
|
|
|
668
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
221
|
|
|
519
|
|
|
740
|
|
|
838
|
|
|
50
|
|
|||||
Total consumer loans
|
221
|
|
|
519
|
|
|
740
|
|
|
838
|
|
|
50
|
|
|||||
Total
|
$
|
40,336
|
|
|
$
|
123,243
|
|
|
$
|
163,579
|
|
|
$
|
179,392
|
|
|
$
|
34,450
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
8,339
|
|
|
$
|
89,513
|
|
|
$
|
97,852
|
|
|
$
|
104,007
|
|
|
$
|
29,684
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
16,732
|
|
|
25,606
|
|
|
42,338
|
|
|
44,337
|
|
|
2,615
|
|
|||||
Construction
|
803
|
|
|
457
|
|
|
1,260
|
|
|
1,260
|
|
|
13
|
|
|||||
Total commercial real estate loans
|
17,535
|
|
|
26,063
|
|
|
43,598
|
|
|
45,597
|
|
|
2,628
|
|
|||||
Residential mortgage
|
7,826
|
|
|
6,078
|
|
|
13,904
|
|
|
14,948
|
|
|
600
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
125
|
|
|
1,146
|
|
|
1,271
|
|
|
1,366
|
|
|
113
|
|
|||||
Total consumer loans
|
125
|
|
|
1,146
|
|
|
1,271
|
|
|
1,366
|
|
|
113
|
|
|||||
Total
|
$
|
33,825
|
|
|
$
|
122,800
|
|
|
$
|
156,625
|
|
|
$
|
165,918
|
|
|
$
|
33,025
|
|
|
Three Months Ended June 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||
|
(in thousands)
|
||||||||||||||
Commercial and industrial
|
$
|
105,633
|
|
|
$
|
443
|
|
|
$
|
87,674
|
|
|
$
|
212
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
46,234
|
|
|
547
|
|
|
52,729
|
|
|
563
|
|
||||
Construction
|
354
|
|
|
—
|
|
|
2,244
|
|
|
16
|
|
||||
Total commercial real estate loans
|
46,588
|
|
|
547
|
|
|
54,973
|
|
|
579
|
|
||||
Residential mortgage
|
12,254
|
|
|
95
|
|
|
12,914
|
|
|
185
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
||||||||
Home equity
|
747
|
|
|
10
|
|
|
1,794
|
|
|
33
|
|
||||
Total consumer loans
|
747
|
|
|
10
|
|
|
1,794
|
|
|
33
|
|
||||
Total
|
$
|
165,222
|
|
|
$
|
1,095
|
|
|
$
|
157,355
|
|
|
$
|
1,009
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||
|
(in thousands)
|
||||||||||||||
Commercial and industrial
|
$
|
111,329
|
|
|
$
|
1,014
|
|
|
$
|
88,865
|
|
|
$
|
926
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
45,515
|
|
|
1,266
|
|
|
54,104
|
|
|
1,179
|
|
||||
Construction
|
587
|
|
|
—
|
|
|
2,230
|
|
|
39
|
|
||||
Total commercial real estate loans
|
46,102
|
|
|
1,266
|
|
|
56,334
|
|
|
1,218
|
|
||||
Residential mortgage
|
13,072
|
|
|
239
|
|
|
13,502
|
|
|
350
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
||||||||
Home equity
|
940
|
|
|
21
|
|
|
1,910
|
|
|
66
|
|
||||
Total consumer loans
|
940
|
|
|
21
|
|
|
1,910
|
|
|
66
|
|
||||
Total
|
$
|
171,443
|
|
|
$
|
2,540
|
|
|
$
|
160,611
|
|
|
$
|
2,560
|
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
Troubled Debt Restructurings
|
|
Number
of
Contracts
|
|
Pre-Modification
Outstanding
Recorded
Investment
|
|
Post-Modification
Outstanding
Recorded
Investment
|
|
Number
of
Contracts
|
|
Pre-Modification
Outstanding
Recorded
Investment
|
|
Post-Modification
Outstanding
Recorded
Investment
|
||||||||||
|
|
($ in thousands)
|
||||||||||||||||||||
Commercial and industrial
|
|
17
|
|
|
$
|
14,663
|
|
|
$
|
14,187
|
|
|
11
|
|
|
$
|
8,822
|
|
|
$
|
8,575
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
|
1
|
|
|
3,067
|
|
|
3,067
|
|
|
5
|
|
|
3,975
|
|
|
3,971
|
|
||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
532
|
|
|
491
|
|
||||
Total commercial real estate
|
|
1
|
|
|
3,067
|
|
|
3,067
|
|
|
6
|
|
|
4,507
|
|
|
4,462
|
|
||||
Residential mortgage
|
|
1
|
|
|
155
|
|
|
155
|
|
|
2
|
|
|
393
|
|
|
389
|
|
||||
Total
|
|
19
|
|
|
$
|
17,885
|
|
|
$
|
17,409
|
|
|
19
|
|
|
$
|
13,722
|
|
|
$
|
13,426
|
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
Troubled Debt Restructurings
|
|
Number
of
Contracts
|
|
Pre-Modification
Outstanding
Recorded
Investment
|
|
Post-Modification
Outstanding
Recorded
Investment
|
|
Number
of
Contracts
|
|
Pre-Modification
Outstanding
Recorded
Investment
|
|
Post-Modification
Outstanding
Recorded
Investment
|
||||||||||
|
|
($ in thousands)
|
||||||||||||||||||||
Commercial and industrial
|
|
53
|
|
|
$
|
38,216
|
|
|
$
|
37,428
|
|
|
15
|
|
|
$
|
10,554
|
|
|
$
|
10,170
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
|
2
|
|
|
4,665
|
|
|
4,665
|
|
|
6
|
|
|
4,170
|
|
|
4,164
|
|
||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
564
|
|
|
503
|
|
||||
Total commercial real estate
|
|
2
|
|
|
4,665
|
|
|
4,665
|
|
|
8
|
|
|
4,734
|
|
|
4,667
|
|
||||
Residential mortgage
|
|
1
|
|
|
155
|
|
|
155
|
|
|
5
|
|
|
980
|
|
|
963
|
|
||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
88
|
|
|
85
|
|
||||
Total
|
|
56
|
|
|
$
|
43,036
|
|
|
$
|
42,248
|
|
|
29
|
|
|
$
|
16,356
|
|
|
$
|
15,885
|
|
|
|
Three Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
||||||||||
Troubled Debt Restructurings Subsequently Defaulted
|
|
Number of
Contracts
|
|
Recorded
Investment
|
|
Number of
Contracts
|
|
Recorded
Investment
|
||||||
|
|
($ in thousands)
|
||||||||||||
Commercial and industrial
|
|
18
|
|
|
$
|
12,322
|
|
|
4
|
|
|
$
|
3,212
|
|
Commercial real estate
|
|
1
|
|
|
383
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
19
|
|
|
$
|
12,705
|
|
|
4
|
|
|
$
|
3,212
|
|
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
||||||||||
Troubled Debt Restructurings Subsequently Defaulted
|
|
Number of
Contracts
|
|
Recorded
Investment
|
|
Number of
Contracts
|
|
Recorded
Investment
|
||||||
|
|
($ in thousands)
|
||||||||||||
Commercial and industrial
|
|
18
|
|
|
$
|
12,322
|
|
|
4
|
|
|
$
|
3,212
|
|
Commercial real estate
|
|
1
|
|
|
383
|
|
|
—
|
|
|
—
|
|
||
Residential mortgage
|
|
2
|
|
|
215
|
|
|
—
|
|
|
—
|
|
||
Consumer
|
|
1
|
|
|
18
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
22
|
|
|
$
|
12,938
|
|
|
4
|
|
|
$
|
3,212
|
|
Credit exposure - by internally assigned risk rating
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total Non-PCI Loans
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
3,733,252
|
|
|
$
|
40,412
|
|
|
$
|
75,853
|
|
|
$
|
69,377
|
|
|
$
|
3,918,894
|
|
Commercial real estate
|
|
10,362,538
|
|
|
63,116
|
|
|
43,564
|
|
|
909
|
|
|
10,470,127
|
|
|||||
Construction
|
|
1,286,278
|
|
|
1,785
|
|
|
354
|
|
|
—
|
|
|
1,288,417
|
|
|||||
Total
|
|
$
|
15,382,068
|
|
|
$
|
105,313
|
|
|
$
|
119,771
|
|
|
$
|
70,286
|
|
|
$
|
15,677,438
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
3,399,426
|
|
|
$
|
31,996
|
|
|
$
|
92,320
|
|
|
$
|
66,633
|
|
|
$
|
3,590,375
|
|
Commercial real estate
|
|
9,828,744
|
|
|
30,892
|
|
|
51,710
|
|
|
963
|
|
|
9,912,309
|
|
|||||
Construction
|
|
1,121,321
|
|
|
215
|
|
|
812
|
|
|
—
|
|
|
1,122,348
|
|
|||||
Total
|
|
$
|
14,349,491
|
|
|
$
|
63,103
|
|
|
$
|
144,842
|
|
|
$
|
67,596
|
|
|
$
|
14,625,032
|
|
Credit exposure - by payment activity
|
|
Performing
Loans
|
|
Non-Performing
Loans
|
|
Total Non-PCI
Loans
|
||||||
|
|
(in thousands)
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
||||||
Residential mortgage
|
|
$
|
3,682,394
|
|
|
$
|
12,069
|
|
|
$
|
3,694,463
|
|
Home equity
|
|
384,357
|
|
|
1,630
|
|
|
385,987
|
|
|||
Automobile
|
|
1,361,995
|
|
|
148
|
|
|
1,362,143
|
|
|||
Other consumer
|
|
909,953
|
|
|
221
|
|
|
910,174
|
|
|||
Total
|
|
$
|
6,338,699
|
|
|
$
|
14,068
|
|
|
$
|
6,352,767
|
|
December 31, 2018
|
|
|
|
|
|
|
||||||
Residential mortgage
|
|
$
|
3,670,067
|
|
|
$
|
12,917
|
|
|
$
|
3,682,984
|
|
Home equity
|
|
369,184
|
|
|
2,156
|
|
|
371,340
|
|
|||
Automobile
|
|
1,319,126
|
|
|
80
|
|
|
1,319,206
|
|
|||
Other consumer
|
|
846,402
|
|
|
419
|
|
|
846,821
|
|
|||
Total
|
|
$
|
6,204,779
|
|
|
$
|
15,572
|
|
|
$
|
6,220,351
|
|
Credit exposure - by payment activity
|
|
Performing
Loans
|
|
Non-Performing
Loans
|
|
Total
PCI Loans
|
||||||
|
|
(in thousands)
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
|
$
|
668,887
|
|
|
$
|
27,984
|
|
|
$
|
696,871
|
|
Commercial real estate
|
|
2,309,294
|
|
|
18,596
|
|
|
2,327,890
|
|
|||
Construction
|
|
239,926
|
|
|
625
|
|
|
240,551
|
|
|||
Residential mortgage
|
|
372,531
|
|
|
5,456
|
|
|
377,987
|
|
|||
Consumer
|
|
126,234
|
|
|
2,424
|
|
|
128,658
|
|
|||
Total
|
|
$
|
3,716,872
|
|
|
$
|
55,085
|
|
|
$
|
3,771,957
|
|
December 31, 2018
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
|
$
|
710,045
|
|
|
$
|
30,612
|
|
|
$
|
740,657
|
|
Commercial real estate
|
|
2,478,990
|
|
|
15,976
|
|
|
2,494,966
|
|
|||
Construction
|
|
364,815
|
|
|
969
|
|
|
365,784
|
|
|||
Residential mortgage
|
|
421,609
|
|
|
6,807
|
|
|
428,416
|
|
|||
Consumer
|
|
158,502
|
|
|
1,761
|
|
|
160,263
|
|
|||
Total
|
|
$
|
4,133,961
|
|
|
$
|
56,125
|
|
|
$
|
4,190,086
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
(in thousands)
|
||||||
Components of allowance for credit losses:
|
|
|
|
||||
Allowance for loan losses
|
$
|
155,105
|
|
|
$
|
151,859
|
|
Allowance for unfunded letters of credit
|
2,974
|
|
|
4,436
|
|
||
Total allowance for credit losses
|
$
|
158,079
|
|
|
$
|
156,295
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in thousands)
|
||||||||||||||
Components of provision for credit losses:
|
|
|
|
|
|
|
|
||||||||
Provision for loan losses
|
$
|
3,706
|
|
|
$
|
6,592
|
|
|
$
|
11,562
|
|
|
$
|
17,294
|
|
Provision for unfunded letters of credit
|
(1,606
|
)
|
|
550
|
|
|
(1,462
|
)
|
|
796
|
|
||||
Total provision for credit losses
|
$
|
2,100
|
|
|
$
|
7,142
|
|
|
$
|
10,100
|
|
|
$
|
18,090
|
|
|
Commercial
and Industrial
|
|
Commercial
Real Estate
|
|
Residential
Mortgage
|
|
Consumer
|
|
Total
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Three Months Ended
June 30, 2019 |
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
$
|
94,630
|
|
|
$
|
47,762
|
|
|
$
|
5,139
|
|
|
$
|
6,850
|
|
|
$
|
154,381
|
|
Loans charged-off
|
(3,073
|
)
|
|
—
|
|
|
—
|
|
|
(1,752
|
)
|
|
(4,825
|
)
|
|||||
Charged-off loans recovered
|
1,195
|
|
|
22
|
|
|
9
|
|
|
617
|
|
|
1,843
|
|
|||||
Net (charge-offs) recoveries
|
(1,878
|
)
|
|
22
|
|
|
9
|
|
|
(1,135
|
)
|
|
(2,982
|
)
|
|||||
Provision for loan losses
|
1,632
|
|
|
1,194
|
|
|
71
|
|
|
809
|
|
|
3,706
|
|
|||||
Ending balance
|
$
|
94,384
|
|
|
$
|
48,978
|
|
|
$
|
5,219
|
|
|
$
|
6,524
|
|
|
$
|
155,105
|
|
Three Months Ended
June 30, 2018 |
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
$
|
66,546
|
|
|
$
|
56,679
|
|
|
$
|
4,100
|
|
|
$
|
5,537
|
|
|
$
|
132,862
|
|
Loans charged-off
|
(642
|
)
|
|
(38
|
)
|
|
(99
|
)
|
|
(1,422
|
)
|
|
(2,201
|
)
|
|||||
Charged-off loans recovered
|
819
|
|
|
15
|
|
|
180
|
|
|
495
|
|
|
1,509
|
|
|||||
Net recoveries (charge-offs)
|
177
|
|
|
(23
|
)
|
|
81
|
|
|
(927
|
)
|
|
(692
|
)
|
|||||
Provision for loan losses
|
7,534
|
|
|
(2,844
|
)
|
|
443
|
|
|
1,459
|
|
|
6,592
|
|
|||||
Ending balance
|
$
|
74,257
|
|
|
$
|
53,812
|
|
|
$
|
4,624
|
|
|
$
|
6,069
|
|
|
$
|
138,762
|
|
|
Commercial
and Industrial
|
|
Commercial
Real Estate
|
|
Residential
Mortgage
|
|
Consumer
|
|
Total
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Six Months Ended
June 30, 2019 |
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
$
|
90,956
|
|
|
$
|
49,650
|
|
|
$
|
5,041
|
|
|
$
|
6,212
|
|
|
$
|
151,859
|
|
Loans charged-off
|
(7,355
|
)
|
|
—
|
|
|
(15
|
)
|
|
(3,780
|
)
|
|
(11,150
|
)
|
|||||
Charged-off loans recovered
|
1,678
|
|
|
43
|
|
|
10
|
|
|
1,103
|
|
|
2,834
|
|
|||||
Net (charge-offs) recoveries
|
(5,677
|
)
|
|
43
|
|
|
(5
|
)
|
|
(2,677
|
)
|
|
(8,316
|
)
|
|||||
Provision for loan losses
|
9,105
|
|
|
(715
|
)
|
|
183
|
|
|
2,989
|
|
|
11,562
|
|
|||||
Ending balance
|
$
|
94,384
|
|
|
$
|
48,978
|
|
|
$
|
5,219
|
|
|
$
|
6,524
|
|
|
$
|
155,105
|
|
Six Months Ended
June 30, 2018 |
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
$
|
57,232
|
|
|
$
|
54,954
|
|
|
$
|
3,605
|
|
|
$
|
5,065
|
|
|
$
|
120,856
|
|
Loans charged-off
|
(773
|
)
|
|
(348
|
)
|
|
(167
|
)
|
|
(2,633
|
)
|
|
(3,921
|
)
|
|||||
Charged-off loans recovered
|
2,926
|
|
|
384
|
|
|
260
|
|
|
963
|
|
|
4,533
|
|
|||||
Net recoveries (charge-offs)
|
2,153
|
|
|
36
|
|
|
93
|
|
|
(1,670
|
)
|
|
612
|
|
|||||
Provision for loan losses
|
14,872
|
|
|
(1,178
|
)
|
|
926
|
|
|
2,674
|
|
|
17,294
|
|
|||||
Ending balance
|
$
|
74,257
|
|
|
$
|
53,812
|
|
|
$
|
4,624
|
|
|
$
|
6,069
|
|
|
$
|
138,762
|
|
|
Commercial
and Industrial
|
|
Commercial
Real Estate
|
|
Residential
Mortgage
|
|
Consumer
|
|
Total
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
31,128
|
|
|
$
|
2,604
|
|
|
$
|
668
|
|
|
$
|
50
|
|
|
$
|
34,450
|
|
Collectively evaluated for impairment
|
63,256
|
|
|
46,374
|
|
|
4,551
|
|
|
6,474
|
|
|
120,655
|
|
|||||
Total
|
$
|
94,384
|
|
|
$
|
48,978
|
|
|
$
|
5,219
|
|
|
$
|
6,524
|
|
|
$
|
155,105
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
103,026
|
|
|
$
|
47,319
|
|
|
$
|
12,494
|
|
|
$
|
740
|
|
|
$
|
163,579
|
|
Collectively evaluated for impairment
|
3,815,868
|
|
|
11,711,225
|
|
|
3,681,969
|
|
|
2,657,564
|
|
|
21,866,626
|
|
|||||
Loans acquired with discounts related to credit quality
|
696,871
|
|
|
2,568,441
|
|
|
377,987
|
|
|
128,658
|
|
|
3,771,957
|
|
|||||
Total
|
$
|
4,615,765
|
|
|
$
|
14,326,985
|
|
|
$
|
4,072,450
|
|
|
$
|
2,786,962
|
|
|
$
|
25,802,162
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
29,684
|
|
|
$
|
2,628
|
|
|
$
|
600
|
|
|
$
|
113
|
|
|
$
|
33,025
|
|
Collectively evaluated for impairment
|
61,272
|
|
|
47,022
|
|
|
4,441
|
|
|
6,099
|
|
|
118,834
|
|
|||||
Total
|
$
|
90,956
|
|
|
$
|
49,650
|
|
|
$
|
5,041
|
|
|
$
|
6,212
|
|
|
$
|
151,859
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
97,852
|
|
|
$
|
43,598
|
|
|
$
|
13,904
|
|
|
$
|
1,271
|
|
|
$
|
156,625
|
|
Collectively evaluated for impairment
|
3,492,523
|
|
|
10,991,059
|
|
|
3,669,080
|
|
|
2,536,096
|
|
|
20,688,758
|
|
|||||
Loans acquired with discounts related to credit quality
|
740,657
|
|
|
2,860,750
|
|
|
428,416
|
|
|
160,263
|
|
|
4,190,086
|
|
|||||
Total
|
$
|
4,331,032
|
|
|
$
|
13,895,407
|
|
|
$
|
4,111,400
|
|
|
$
|
2,697,630
|
|
|
$
|
25,035,469
|
|
|
June 30, 2019
|
||
|
(in thousands)
|
||
ROU assets:
|
|
||
Operating leases
|
$
|
282,329
|
|
Finance leases
|
1,019
|
|
|
Total
|
$
|
283,348
|
|
Lease liabilities:
|
|
||
Operating leases
|
$
|
305,364
|
|
Finance leases
|
2,041
|
|
|
Total
|
$
|
307,405
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
June 30, 2019
|
|
June 30, 2019
|
||||
|
(in thousands)
|
||||||
Finance lease cost:
|
|
|
|
||||
Amortization of ROU assets
|
$
|
73
|
|
|
$
|
146
|
|
Interest on lease liabilities
|
49
|
|
|
101
|
|
||
Operating lease cost
|
8,949
|
|
|
15,923
|
|
||
Short-term lease cost
|
59
|
|
|
134
|
|
||
Variable lease cost
|
1,024
|
|
|
1,972
|
|
||
Sublease income
|
(783
|
)
|
|
(1,686
|
)
|
||
Total lease cost (included in net occupancy and equipment expense)
|
$
|
9,371
|
|
|
$
|
16,590
|
|
|
June 30, 2019
|
|
Weighted-average remaining lease term
|
|
|
Operating leases
|
13.08 years
|
|
Finance leases
|
3.50 years
|
|
Weighted-average discount rate
|
|
|
Operating leases
|
3.72
|
%
|
Finance leases
|
8.25
|
%
|
|
Lessor
|
|
Lessee
|
||||||||
|
Direct Financing and Sales-Type Leases
|
|
Operating Leases
|
|
Finance Leases
|
||||||
|
(in thousands)
|
||||||||||
2019
|
$
|
63,085
|
|
|
$
|
17,594
|
|
|
$
|
341
|
|
2020
|
108,188
|
|
|
35,006
|
|
|
684
|
|
|||
2021
|
91,950
|
|
|
34,169
|
|
|
684
|
|
|||
2022
|
70,058
|
|
|
32,625
|
|
|
684
|
|
|||
2023
|
47,744
|
|
|
29,222
|
|
|
—
|
|
|||
Thereafter
|
33,007
|
|
|
244,762
|
|
|
—
|
|
|||
Total lease payments
|
414,032
|
|
|
393,378
|
|
|
2,393
|
|
|||
Less: present value discount
|
(36,769
|
)
|
|
(88,014
|
)
|
|
(352
|
)
|
|||
Total
|
$
|
377,263
|
|
|
$
|
305,364
|
|
|
$
|
2,041
|
|
|
Gross Rents
|
|
Sublease Income
|
|
Net Rents
|
||||||
|
(in thousands)
|
||||||||||
2018
|
$
|
13,731
|
|
|
$
|
1,092
|
|
|
$
|
12,639
|
|
2019
|
27,640
|
|
|
2,124
|
|
|
25,516
|
|
|||
2020
|
27,785
|
|
|
2,077
|
|
|
25,708
|
|
|||
2021
|
26,955
|
|
|
2,009
|
|
|
24,946
|
|
|||
2022
|
25,948
|
|
|
1,891
|
|
|
24,057
|
|
|||
Thereafter
|
271,054
|
|
|
8,130
|
|
|
262,924
|
|
|||
Total lease payments
|
$
|
393,113
|
|
|
$
|
17,323
|
|
|
$
|
375,790
|
|
|
Gross
Intangible
Assets
|
|
Accumulated
Amortization
|
|
Valuation
Allowance
|
|
Net
Intangible
Assets
|
||||||||
|
(in thousands)
|
||||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
||||||||
Loan servicing rights
|
$
|
89,732
|
|
|
$
|
(66,406
|
)
|
|
$
|
—
|
|
|
$
|
23,326
|
|
Core deposits
|
80,470
|
|
|
(34,640
|
)
|
|
—
|
|
|
45,830
|
|
||||
Other
|
3,945
|
|
|
(2,516
|
)
|
|
—
|
|
|
1,429
|
|
||||
Total other intangible assets
|
$
|
174,147
|
|
|
$
|
(103,562
|
)
|
|
$
|
—
|
|
|
$
|
70,585
|
|
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Loan servicing rights
|
$
|
87,354
|
|
|
$
|
(63,161
|
)
|
|
$
|
(83
|
)
|
|
$
|
24,110
|
|
Core deposits
|
80,470
|
|
|
(29,136
|
)
|
|
—
|
|
|
51,334
|
|
||||
Other
|
3,945
|
|
|
(2,399
|
)
|
|
—
|
|
|
1,546
|
|
||||
Total other intangible assets
|
$
|
171,769
|
|
|
$
|
(94,696
|
)
|
|
$
|
(83
|
)
|
|
$
|
76,990
|
|
|
Loan Servicing
Rights
|
|
Core
Deposits
|
|
Other
|
||||||
|
(in thousands)
|
||||||||||
2019
|
$
|
2,056
|
|
|
$
|
5,457
|
|
|
$
|
117
|
|
2020
|
3,603
|
|
|
9,607
|
|
|
220
|
|
|||
2021
|
3,007
|
|
|
8,252
|
|
|
206
|
|
|||
2022
|
2,513
|
|
|
6,898
|
|
|
191
|
|
|||
2023
|
2,097
|
|
|
5,544
|
|
|
131
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Fair Value
|
|
|
|
Fair Value
|
|
|
||||||||||||||||
|
Other Assets
|
|
Other Liabilities
|
|
Notional Amount
|
|
Other Assets
|
|
Other Liabilities
|
|
Notional Amount
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedge interest rate swaps
|
$
|
—
|
|
|
$
|
2,159
|
|
|
$
|
255,000
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
332,000
|
|
Fair value hedge interest rate swaps
|
—
|
|
|
337
|
|
|
7,411
|
|
|
—
|
|
|
347
|
|
|
7,536
|
|
||||||
Total derivatives designated as hedging instruments
|
$
|
—
|
|
|
$
|
2,496
|
|
|
$
|
262,411
|
|
|
$
|
—
|
|
|
$
|
374
|
|
|
$
|
339,536
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps and embedded derivatives
|
$
|
139,893
|
|
|
$
|
30,337
|
|
|
$
|
3,469,497
|
|
|
$
|
48,642
|
|
|
$
|
22,533
|
|
|
$
|
3,390,578
|
|
Mortgage banking derivatives
|
603
|
|
|
669
|
|
|
140,306
|
|
|
337
|
|
|
774
|
|
|
105,247
|
|
||||||
Total derivatives not designated as hedging instruments
|
$
|
140,496
|
|
|
$
|
31,006
|
|
|
$
|
3,609,803
|
|
|
$
|
48,979
|
|
|
$
|
23,307
|
|
|
$
|
3,495,825
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in thousands)
|
||||||||||||||
Amount of loss reclassified from accumulated other comprehensive loss to interest expense
|
$
|
(383
|
)
|
|
$
|
(866
|
)
|
|
$
|
(673
|
)
|
|
$
|
(2,317
|
)
|
Amount of (loss) gain recognized in other comprehensive income (loss)
|
(962
|
)
|
|
637
|
|
|
(1,512
|
)
|
|
3,388
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in thousands)
|
||||||||||||||
Derivative - interest rate swaps:
|
|
|
|
|
|
|
|
||||||||
Interest income
|
$
|
49
|
|
|
$
|
88
|
|
|
$
|
73
|
|
|
$
|
219
|
|
Hedged item - loans:
|
|
|
|
|
|
|
|
||||||||
Interest income
|
$
|
(49
|
)
|
|
$
|
(88
|
)
|
|
$
|
(73
|
)
|
|
$
|
(219
|
)
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in thousands)
|
||||||||||||||
Non-designated hedge interest rate derivatives
|
|
|
|
|
|
|
|
||||||||
Other non-interest expense
|
$
|
(347
|
)
|
|
$
|
230
|
|
|
$
|
(757
|
)
|
|
$
|
448
|
|
|
|
|
|
|
|
|
Gross Amounts Not Offset
|
|
|
||||||||||||||
|
Gross Amounts
Recognized
|
|
Gross Amounts
Offset
|
|
Net Amounts
Presented
|
|
Financial
Instruments
|
|
Cash
Collateral
|
|
Net
Amount
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
$
|
139,893
|
|
|
$
|
—
|
|
|
$
|
139,893
|
|
|
$
|
(13,385
|
)
|
|
$
|
—
|
|
|
$
|
126,508
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
$
|
32,833
|
|
|
$
|
—
|
|
|
$
|
32,833
|
|
|
$
|
(13,385
|
)
|
|
$
|
(15,211
|
)
|
(1)
|
$
|
4,237
|
|
Repurchase agreements
|
150,000
|
|
|
—
|
|
|
150,000
|
|
|
—
|
|
|
(150,000
|
)
|
(2)
|
—
|
|
||||||
Total
|
$
|
182,833
|
|
|
$
|
—
|
|
|
$
|
182,833
|
|
|
$
|
(13,385
|
)
|
|
$
|
(165,211
|
)
|
|
$
|
4,237
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps and caps
|
$
|
48,642
|
|
|
$
|
—
|
|
|
$
|
48,642
|
|
|
$
|
(1,214
|
)
|
|
$
|
—
|
|
|
$
|
47,428
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps and caps
|
$
|
22,907
|
|
|
$
|
—
|
|
|
$
|
22,907
|
|
|
$
|
(1,214
|
)
|
|
$
|
(1,852
|
)
|
(1)
|
$
|
19,841
|
|
Repurchase agreements
|
150,000
|
|
|
—
|
|
|
150,000
|
|
|
—
|
|
|
(150,000
|
)
|
(2)
|
—
|
|
||||||
Total
|
$
|
172,907
|
|
|
$
|
—
|
|
|
$
|
172,907
|
|
|
$
|
(1,214
|
)
|
|
$
|
(151,852
|
)
|
|
$
|
19,841
|
|
|
(1)
|
Represents the amount of collateral posted with derivative counterparties that offsets net liability positions.
|
(2)
|
Represents the fair value of non-cash pledged investment securities.
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
(in thousands)
|
||||||
Other Assets:
|
|
|
|
||||
Affordable housing tax credit investments, net
|
$
|
27,738
|
|
|
$
|
36,961
|
|
Other tax credit investments, net
|
58,215
|
|
|
68,052
|
|
||
Total tax credit investments, net
|
$
|
85,953
|
|
|
$
|
105,013
|
|
Other Liabilities:
|
|
|
|
||||
Unfunded affordable housing tax credit commitments
|
$
|
2,696
|
|
|
$
|
4,520
|
|
Unfunded other tax credit commitments
|
5,139
|
|
|
8,756
|
|
||
Total unfunded tax credit commitments
|
$
|
7,835
|
|
|
$
|
13,276
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in thousands)
|
||||||||||||||
Components of Income Tax Expense:
|
|
|
|
|
|
|
|
||||||||
Affordable housing tax credits and other tax benefits
|
$
|
1,708
|
|
|
$
|
1,429
|
|
|
$
|
3,421
|
|
|
$
|
3,250
|
|
Other tax credit investment credits and tax benefits
|
2,158
|
|
|
5,680
|
|
|
4,961
|
|
|
11,165
|
|
||||
Total reduction in income tax expense
|
$
|
3,866
|
|
|
$
|
7,109
|
|
|
$
|
8,382
|
|
|
$
|
14,415
|
|
Amortization of Tax Credit Investments:
|
|
|
|
|
|
|
|
||||||||
Affordable housing tax credit investment losses
|
$
|
593
|
|
|
$
|
(319
|
)
|
|
$
|
1,266
|
|
|
$
|
667
|
|
Affordable housing tax credit investment impairment losses
|
794
|
|
|
515
|
|
|
1,524
|
|
|
1,102
|
|
||||
Other tax credit investment losses
|
2,509
|
|
|
1,253
|
|
|
3,496
|
|
|
1,790
|
|
||||
Other tax credit investment impairment losses
|
967
|
|
|
3,021
|
|
|
5,750
|
|
|
6,185
|
|
||||
Total amortization of tax credit investments recorded in non-interest expense
|
$
|
4,863
|
|
|
$
|
4,470
|
|
|
$
|
12,036
|
|
|
$
|
9,744
|
|
•
|
Evidence that we do not have the ability to recover the carrying amount of the investment;
|
•
|
The inability of the investee to sustain earnings;
|
•
|
A current fair value of the investment based upon cash flow projections that is less than the carrying amount; and
|
•
|
Change in the economic or technological environment that could adversely affect the investee’s operations
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
||||||||||
Beginning balance
|
$
|
12,100
|
|
|
$
|
4,238
|
|
|
$
|
—
|
|
|
$
|
4,238
|
|
Additions based on tax positions related to current year
|
223
|
|
|
—
|
|
|
12,323
|
|
|
—
|
|
||||
Ending balance
|
$
|
12,323
|
|
|
$
|
4,238
|
|
|
$
|
12,323
|
|
|
$
|
4,238
|
|
•
|
failure to obtain shareholder or regulatory approval for the acquisition of Oritani Financial Corp. or to satisfy other conditions to the merger on the proposed terms and within the proposed timeframe;
|
•
|
the inability to realize expected cost savings and synergies from the Oritani merger in amounts or in the timeframe anticipated;
|
•
|
costs or difficulties relating to Oritani integration matters might be greater than expected;
|
•
|
material adverse changes in Valley’s or Oritani’s operations or earnings;
|
•
|
the inability to retain customers and qualified employees of Oritani;
|
•
|
the inability to repay $635 million of higher cost FHLB borrowings in conjunction with the Oritani merger;
|
•
|
developments in the DC Solar bankruptcy and federal investigations that, after careful analysis by management, could require the recognition of additional tax provision charges related to uncertain tax liability positions;
|
•
|
due diligence issues or other matters that prevent or delay the expected sale and leaseback of three branch properties or expenses that reduce the additional pre-tax net gain expected to be recognized in the second half of 2019;
|
•
|
higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations and case law;
|
•
|
weakness or a decline in the economy, mainly in New Jersey, New York, Florida and Alabama;
|
•
|
a decline in commercial real estate values within our market areas, including the potential negative impact of recent changes to New York City's rent laws;
|
•
|
the inability to grow customer deposits to keep pace with loan growth;
|
•
|
an increase in our allowance for credit losses due to higher than expected loan losses within one or more segments of our loan portfolio;
|
•
|
less than expected cost savings from Valley's branch transformation strategy;
|
•
|
greater than expected technology related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;
|
•
|
the loss of or decrease in lower-cost funding sources within our deposit base, including our inability to achieve deposit retention targets under Valley's branch transformation strategy;
|
•
|
cyber-attacks, computer viruses or other malware that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data, disable or degrade service, or sabotage our systems;
|
•
|
results of examinations by the OCC, the FRB, the CFPB and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;
|
•
|
damage verdicts or settlements or restrictions related to existing or potential litigations arising from claims of breach of fiduciary responsibility, negligence, fraud, contractual claims, environmental laws, patent or trademark infringement, employment related claims, discrimination claims, and other matters;
|
•
|
changes in accounting policies or accounting standards, including the new authoritative accounting guidance (known as the current expected credit loss (CECL) model) which may increase the level of our allowance for credit losses after adoption on January 1, 2020;
|
•
|
our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements or a decision to increase capital by retaining more earnings;
|
•
|
unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather or other external events;
|
•
|
unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, changes in regulatory lending guidance or other factors; and
|
•
|
the failure of other financial institutions with whom we have trading, clearing, counterparty and other financial relationships.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Return on average assets
|
0.94
|
%
|
|
0.98
|
%
|
|
1.17
|
%
|
|
0.78
|
%
|
Return on average assets, as adjusted
|
0.96
|
|
|
1.01
|
|
|
0.95
|
|
|
0.93
|
|
|
|
|
|
|
|
|
|
||||
Return on average shareholders’ equity
|
8.79
|
|
|
8.88
|
|
|
11.04
|
|
|
6.99
|
|
Return on average shareholders’ equity, as adjusted
|
9.05
|
|
|
9.17
|
|
|
8.94
|
|
|
8.33
|
|
|
|
|
|
|
|
|
|
||||
Return on average tangible shareholders’ equity (ROATE)
|
13.16
|
|
|
13.76
|
|
|
16.65
|
|
|
10.82
|
|
ROATE, as adjusted
|
13.55
|
|
|
14.21
|
|
|
13.48
|
|
|
12.91
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in thousands)
|
||||||||||||||
Net income, as reported
|
$
|
76,468
|
|
|
$
|
72,802
|
|
|
$
|
189,798
|
|
|
$
|
114,767
|
|
Add: Net impairment losses on securities (net of tax)
|
2,078
|
|
|
—
|
|
|
2,078
|
|
|
—
|
|
||||
Add: (Gains) losses on securities transactions (net of tax)
|
(8
|
)
|
|
26
|
|
|
15
|
|
|
574
|
|
||||
Add: Severance expense (net of tax) (1)
|
—
|
|
|
—
|
|
|
3,433
|
|
|
—
|
|
||||
Add: Tax credit investment impairment (net of tax) (2)
|
—
|
|
|
—
|
|
|
1,757
|
|
|
—
|
|
||||
Add: Legal expenses (litigation reserve impact only, net of tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
7,520
|
|
||||
Add: Merger related expenses (net of tax) (3)
|
—
|
|
|
2,326
|
|
|
—
|
|
|
12,014
|
|
||||
Add: Income Tax Expense (4)
|
223
|
|
|
—
|
|
|
12,323
|
|
|
2,000
|
|
||||
Less: Gain on sale-leaseback transaction (net of tax) (5)
|
—
|
|
|
—
|
|
|
(55,707
|
)
|
|
—
|
|
||||
Net income, as adjusted
|
$
|
78,761
|
|
|
$
|
75,154
|
|
|
$
|
153,697
|
|
|
$
|
136,875
|
|
|
(4)
|
Income tax expense related to reserves for uncertain tax positions in 2019 and a USAB charge in 2018.
|
(5)
|
The gain on sale leaseback transactions is included in gains on the sales of assets within other non-interest income.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
($ in thousands)
|
||||||||||||||
Net income, as adjusted
|
$
|
78,761
|
|
|
$
|
75,154
|
|
|
$
|
153,697
|
|
|
$
|
136,875
|
|
Average assets
|
$
|
32,707,144
|
|
|
$
|
29,778,210
|
|
|
$
|
32,502,744
|
|
|
$
|
29,536,301
|
|
Annualized return on average assets, as adjusted
|
0.96
|
%
|
|
1.01
|
%
|
|
0.95
|
%
|
|
0.93
|
%
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
($ in thousands)
|
||||||||||||||
Net income, as adjusted
|
$
|
78,761
|
|
|
$
|
75,154
|
|
|
$
|
153,697
|
|
|
$
|
136,875
|
|
Average shareholders' equity
|
$
|
3,481,519
|
|
|
$
|
3,279,616
|
|
|
$
|
3,438,344
|
|
|
$
|
3,284,687
|
|
Annualized return on average shareholders' equity, as adjusted
|
9.05
|
%
|
|
9.17
|
%
|
|
8.94
|
%
|
|
8.33
|
%
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
($ in thousands)
|
||||||||||||||
Net income
|
$
|
76,468
|
|
|
$
|
72,802
|
|
|
$
|
189,798
|
|
|
$
|
114,767
|
|
Net income, as adjusted
|
$
|
78,761
|
|
|
$
|
75,154
|
|
|
$
|
153,697
|
|
|
$
|
136,875
|
|
Average shareholders’ equity
|
$
|
3,481,519
|
|
|
$
|
3,279,616
|
|
|
$
|
3,438,344
|
|
|
$
|
3,284,687
|
|
Less: Average goodwill and other intangible assets
|
1,156,703
|
|
|
1,163,575
|
|
|
1,158,596
|
|
|
1,163,901
|
|
||||
Average tangible shareholders’ equity
|
$
|
2,324,816
|
|
|
$
|
2,116,041
|
|
|
$
|
2,279,748
|
|
|
$
|
2,120,786
|
|
Annualized ROATE
|
13.16
|
%
|
|
13.76
|
%
|
|
16.65
|
%
|
|
10.82
|
%
|
||||
Annualized ROATE, as adjusted
|
13.55
|
%
|
|
14.21
|
%
|
|
13.48
|
%
|
|
12.91
|
%
|
|
Three Months Ended
|
|||||||||||||||||||||||||||||||
|
June 30, 2019
|
|
March 31, 2019
|
|
June 30, 2018
|
|||||||||||||||||||||||||||
|
Average
Balance
|
|
Interest
|
|
Average
Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Rate
|
|||||||||||||||
|
($ in thousands)
|
|||||||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans (1)(2)
|
$
|
25,552,415
|
|
|
$
|
296,934
|
|
|
4.65
|
%
|
|
$
|
25,254,733
|
|
|
$
|
288,277
|
|
|
4.57
|
%
|
|
$
|
22,840,235
|
|
|
$
|
247,691
|
|
|
4.34
|
%
|
Taxable investments (3)
|
3,453,676
|
|
|
25,284
|
|
|
2.93
|
|
|
3,390,609
|
|
|
26,050
|
|
|
3.07
|
|
|
3,438,842
|
|
|
25,950
|
|
|
3.02
|
|
||||||
Tax-exempt investments (1)(3)
|
658,727
|
|
|
5,514
|
|
|
3.35
|
|
|
689,675
|
|
|
6,081
|
|
|
3.53
|
|
|
750,896
|
|
|
7,138
|
|
|
3.80
|
|
||||||
Interest bearing deposits with banks
|
212,566
|
|
|
1,168
|
|
|
2.20
|
|
|
227,890
|
|
|
1,093
|
|
|
1.92
|
|
|
226,986
|
|
|
839
|
|
|
1.48
|
|
||||||
Total interest earning assets
|
29,877,384
|
|
|
328,900
|
|
|
4.40
|
|
|
29,562,907
|
|
|
321,501
|
|
|
4.35
|
|
|
27,256,959
|
|
|
281,618
|
|
|
4.13
|
|
||||||
Allowance for loan losses
|
(156,747
|
)
|
|
|
|
|
|
(152,961
|
)
|
|
|
|
|
|
(134,741
|
)
|
|
|
|
|
||||||||||||
Cash and due from banks
|
265,015
|
|
|
|
|
|
|
287,449
|
|
|
|
|
|
|
274,557
|
|
|
|
|
|
||||||||||||
Other assets
|
2,744,661
|
|
|
|
|
|
|
2,643,727
|
|
|
|
|
|
|
2,428,459
|
|
|
|
|
|
||||||||||||
Unrealized (losses) gains on securities available for sale, net
|
(23,169
|
)
|
|
|
|
|
|
(45,052
|
)
|
|
|
|
|
|
(47,024
|
)
|
|
|
|
|
||||||||||||
Total assets
|
$
|
32,707,144
|
|
|
|
|
|
|
$
|
32,296,070
|
|
|
|
|
|
|
$
|
29,778,210
|
|
|
|
|
|
|||||||||
Liabilities and shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings, NOW and money market deposits
|
$
|
11,293,885
|
|
|
$
|
38,020
|
|
|
1.35
|
%
|
|
$
|
11,450,943
|
|
|
$
|
36,283
|
|
|
1.27
|
%
|
|
$
|
10,978,067
|
|
|
$
|
24,756
|
|
|
0.90
|
%
|
Time deposits
|
7,047,319
|
|
|
40,331
|
|
|
2.29
|
|
|
7,214,863
|
|
|
38,171
|
|
|
2.12
|
|
|
4,700,456
|
|
|
16,635
|
|
|
1.42
|
|
||||||
Total interest bearing deposits
|
18,341,204
|
|
|
78,351
|
|
|
1.71
|
|
|
18,665,806
|
|
|
74,454
|
|
|
1.60
|
|
|
15,678,523
|
|
|
41,391
|
|
|
1.06
|
|
||||||
Short-term borrowings
|
2,380,294
|
|
|
14,860
|
|
|
2.50
|
|
|
2,011,428
|
|
|
12,549
|
|
|
2.50
|
|
|
2,166,837
|
|
|
10,913
|
|
|
2.01
|
|
||||||
Long-term borrowings (4)
|
1,607,046
|
|
|
14,297
|
|
|
3.56
|
|
|
1,666,794
|
|
|
14,573
|
|
|
3.50
|
|
|
2,284,132
|
|
|
17,062
|
|
|
2.99
|
|
||||||
Total interest bearing liabilities
|
22,328,544
|
|
|
107,508
|
|
|
1.93
|
|
|
22,344,028
|
|
|
101,576
|
|
|
1.82
|
|
|
20,129,492
|
|
|
69,366
|
|
|
1.38
|
|
||||||
Non-interest bearing deposits
|
6,358,034
|
|
|
|
|
|
|
6,116,953
|
|
|
|
|
|
|
6,168,059
|
|
|
|
|
|
||||||||||||
Other liabilities
|
539,047
|
|
|
|
|
|
|
440,401
|
|
|
|
|
|
|
201,043
|
|
|
|
|
|
||||||||||||
Shareholders’ equity
|
3,481,519
|
|
|
|
|
|
|
3,394,688
|
|
|
|
|
|
|
3,279,616
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders’ equity
|
$
|
32,707,144
|
|
|
|
|
|
|
$
|
32,296,070
|
|
|
|
|
|
|
$
|
29,778,210
|
|
|
|
|
|
|||||||||
Net interest income/interest rate spread (5)
|
|
|
$
|
221,392
|
|
|
2.47
|
%
|
|
|
|
$
|
219,925
|
|
|
2.53
|
%
|
|
|
|
$
|
212,252
|
|
|
2.75
|
%
|
||||||
Tax equivalent adjustment
|
|
|
(1,158
|
)
|
|
|
|
|
|
(1,277
|
)
|
|
|
|
|
|
(1,500
|
)
|
|
|
||||||||||||
Net interest income, as reported
|
|
|
$
|
220,234
|
|
|
|
|
|
|
$
|
218,648
|
|
|
|
|
|
|
$
|
210,752
|
|
|
|
|||||||||
Net interest margin (6)
|
|
|
|
|
2.95
|
%
|
|
|
|
|
|
2.96
|
%
|
|
|
|
|
|
3.09
|
%
|
||||||||||||
Tax equivalent effect
|
|
|
|
|
0.01
|
%
|
|
|
|
|
|
0.02
|
%
|
|
|
|
|
|
0.02
|
%
|
||||||||||||
Net interest margin on a fully tax equivalent basis (6)
|
|
|
|
|
2.96
|
%
|
|
|
|
|
|
2.98
|
%
|
|
|
|
|
|
3.11
|
%
|
|
Six Months Ended
|
||||||||||||||||||||
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||||||||||
|
Average
Balance
|
|
Interest
|
|
Average
Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Rate
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans (1)(2)
|
$
|
25,404,396
|
|
|
$
|
585,211
|
|
|
4.61
|
%
|
|
$
|
22,573,097
|
|
|
$
|
485,278
|
|
|
4.30
|
%
|
Taxable investments (3)
|
3,422,317
|
|
|
51,334
|
|
|
3.00
|
|
|
3,420,395
|
|
|
49,212
|
|
|
2.88
|
|
||||
Tax-exempt investments (1)(3)
|
674,116
|
|
|
11,595
|
|
|
3.44
|
|
|
745,976
|
|
|
14,380
|
|
|
3.86
|
|
||||
Interest bearing deposits with banks
|
220,186
|
|
|
2,261
|
|
|
2.05
|
|
|
265,813
|
|
|
1,765
|
|
|
1.33
|
|
||||
Total interest earning assets
|
29,721,015
|
|
|
650,401
|
|
|
4.38
|
|
|
27,005,281
|
|
|
550,635
|
|
|
4.08
|
|
||||
Allowance for loan losses
|
(154,864
|
)
|
|
|
|
|
|
(129,181
|
)
|
|
|
|
|
||||||||
Cash and due from banks
|
276,170
|
|
|
|
|
|
|
266,916
|
|
|
|
|
|
||||||||
Other assets
|
2,694,473
|
|
|
|
|
|
|
2,426,020
|
|
|
|
|
|
||||||||
Unrealized (losses) gains on securities available for sale, net
|
(34,050
|
)
|
|
|
|
|
|
(32,735
|
)
|
|
|
|
|
||||||||
Total assets
|
$
|
32,502,744
|
|
|
|
|
|
|
$
|
29,536,301
|
|
|
|
|
|
||||||
Liabilities and shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings, NOW and money market deposits
|
$
|
11,371,980
|
|
|
$
|
74,303
|
|
|
1.31
|
%
|
|
$
|
11,076,478
|
|
|
$
|
47,073
|
|
|
0.85
|
%
|
Time deposits
|
7,130,628
|
|
|
78,502
|
|
|
2.20
|
|
|
4,647,705
|
|
|
31,251
|
|
|
1.34
|
|
||||
Total interest bearing deposits
|
18,502,608
|
|
|
152,805
|
|
|
1.65
|
|
|
15,724,183
|
|
|
78,324
|
|
|
1.00
|
|
||||
Short-term borrowings
|
2,196,880
|
|
|
27,409
|
|
|
2.50
|
|
|
1,828,932
|
|
|
16,645
|
|
|
1.82
|
|
||||
Long-term borrowings (4)
|
1,636,755
|
|
|
28,870
|
|
|
3.53
|
|
|
2,357,928
|
|
|
34,294
|
|
|
2.91
|
|
||||
Total interest bearing liabilities
|
22,336,243
|
|
|
209,084
|
|
|
1.87
|
|
|
19,911,043
|
|
|
129,263
|
|
|
1.30
|
|
||||
Non-interest bearing deposits
|
6,238,159
|
|
|
|
|
|
|
6,140,027
|
|
|
|
|
|
||||||||
Other liabilities
|
489,998
|
|
|
|
|
|
|
200,544
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
3,438,344
|
|
|
|
|
|
|
3,284,687
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
32,502,744
|
|
|
|
|
|
|
$
|
29,536,301
|
|
|
|
|
|
||||||
Net interest income/interest rate spread (5)
|
|
|
$
|
441,317
|
|
|
2.51
|
%
|
|
|
|
$
|
421,372
|
|
|
2.78
|
%
|
||||
Tax equivalent adjustment
|
|
|
(2,435
|
)
|
|
|
|
|
|
(3,022
|
)
|
|
|
||||||||
Net interest income, as reported
|
|
|
$
|
438,882
|
|
|
|
|
|
|
$
|
418,350
|
|
|
|
||||||
Net interest margin (6)
|
|
|
|
|
2.95
|
%
|
|
|
|
|
|
3.10
|
%
|
||||||||
Tax equivalent effect
|
|
|
|
|
0.02
|
%
|
|
|
|
|
|
0.02
|
%
|
||||||||
Net interest margin on a fully tax equivalent basis (6)
|
|
|
|
|
2.97
|
%
|
|
|
|
|
|
3.12
|
%
|
|
(1)
|
Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate.
|
(2)
|
Loans are stated net of unearned income and include non-accrual loans.
|
(3)
|
The yield for securities that are classified as available for sale is based on the average historical amortized cost.
|
(4)
|
Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated
|
(5)
|
Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.
|
(6)
|
Net interest income as a percentage of total average interest earning assets.
|
|
Three Months Ended June 30, 2019 Compared to June 30, 2018
|
|
Six Months Ended June 30, 2019 Compared to June 30, 2018
|
||||||||||||||||||||
|
Change
Due to
Volume
|
|
Change
Due to
Rate
|
|
Total
Change
|
|
Change
Due to
Volume
|
|
Change
Due to
Rate
|
|
Total
Change
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Interest Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans*
|
$
|
30,726
|
|
|
$
|
18,517
|
|
|
$
|
49,243
|
|
|
$
|
63,640
|
|
|
$
|
36,293
|
|
|
$
|
99,933
|
|
Taxable investments
|
112
|
|
|
(778
|
)
|
|
(666
|
)
|
|
28
|
|
|
2,094
|
|
|
2,122
|
|
||||||
Tax-exempt investments*
|
(823
|
)
|
|
(801
|
)
|
|
(1,624
|
)
|
|
(1,315
|
)
|
|
(1,470
|
)
|
|
(2,785
|
)
|
||||||
Interest bearing deposits with banks
|
(56
|
)
|
|
385
|
|
|
329
|
|
|
(343
|
)
|
|
839
|
|
|
496
|
|
||||||
Total increase in interest income
|
29,959
|
|
|
17,323
|
|
|
47,282
|
|
|
62,010
|
|
|
37,756
|
|
|
99,766
|
|
||||||
Interest Expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Savings, NOW and money market deposits
|
732
|
|
|
12,532
|
|
|
13,264
|
|
|
1,288
|
|
|
25,942
|
|
|
27,230
|
|
||||||
Time deposits
|
10,598
|
|
|
13,098
|
|
|
23,696
|
|
|
21,547
|
|
|
25,704
|
|
|
47,251
|
|
||||||
Short-term borrowings
|
1,150
|
|
|
2,797
|
|
|
3,947
|
|
|
3,785
|
|
|
6,979
|
|
|
10,764
|
|
||||||
Long-term borrowings and junior subordinated debentures
|
(5,645
|
)
|
|
2,880
|
|
|
(2,765
|
)
|
|
(11,805
|
)
|
|
6,381
|
|
|
(5,424
|
)
|
||||||
Total increase in interest expense
|
6,835
|
|
|
31,307
|
|
|
38,142
|
|
|
14,815
|
|
|
65,006
|
|
|
79,821
|
|
||||||
Total increase in net interest income
|
$
|
23,124
|
|
|
$
|
(13,984
|
)
|
|
$
|
9,140
|
|
|
$
|
47,195
|
|
|
$
|
(27,250
|
)
|
|
$
|
19,945
|
|
|
*
|
Interest income is presented on a tax equivalent basis using 21 percent as the federal tax rate for 2019 and 2018.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in thousands)
|
||||||||||||||
Trust and investment services
|
$
|
3,096
|
|
|
$
|
3,262
|
|
|
$
|
6,000
|
|
|
$
|
6,492
|
|
Insurance commissions
|
2,649
|
|
|
4,026
|
|
|
5,174
|
|
|
7,847
|
|
||||
Service charges on deposit accounts
|
5,827
|
|
|
6,679
|
|
|
11,730
|
|
|
13,932
|
|
||||
Gains (losses) on securities transactions, net
|
11
|
|
|
(36
|
)
|
|
(21
|
)
|
|
(801
|
)
|
||||
Other-than-temporary impairment losses on securities
|
(2,928
|
)
|
|
—
|
|
|
(2,928
|
)
|
|
—
|
|
||||
Portion recognized in other comprehensive income (before taxes)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net impairment losses on securities recognized in earnings
|
(2,928
|
)
|
|
—
|
|
|
(2,928
|
)
|
|
—
|
|
||||
Fees from loan servicing
|
2,367
|
|
|
2,045
|
|
|
4,797
|
|
|
4,268
|
|
||||
Gains on sales of loans, net
|
3,930
|
|
|
7,642
|
|
|
8,506
|
|
|
14,395
|
|
||||
(Losses) gains on sales of assets, net
|
(564
|
)
|
|
(125
|
)
|
|
77,156
|
|
|
(222
|
)
|
||||
Bank owned life insurance
|
2,205
|
|
|
2,652
|
|
|
4,092
|
|
|
4,415
|
|
||||
Other
|
11,010
|
|
|
11,924
|
|
|
20,770
|
|
|
19,994
|
|
||||
Total non-interest income
|
$
|
27,603
|
|
|
$
|
38,069
|
|
|
$
|
135,276
|
|
|
$
|
70,320
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in thousands)
|
||||||||||||||
Salary and employee benefits expense
|
$
|
76,183
|
|
|
$
|
78,944
|
|
|
$
|
159,288
|
|
|
$
|
172,236
|
|
Net occupancy and equipment expense
|
29,700
|
|
|
26,901
|
|
|
57,586
|
|
|
54,825
|
|
||||
FDIC insurance assessment
|
4,931
|
|
|
8,044
|
|
|
11,052
|
|
|
13,542
|
|
||||
Amortization of other intangible assets
|
4,170
|
|
|
4,617
|
|
|
8,481
|
|
|
8,910
|
|
||||
Professional and legal fees
|
4,145
|
|
|
5,337
|
|
|
9,416
|
|
|
22,384
|
|
||||
Amortization of tax credit investments
|
4,863
|
|
|
4,470
|
|
|
12,036
|
|
|
9,744
|
|
||||
Telecommunications expense
|
2,351
|
|
|
3,015
|
|
|
4,619
|
|
|
6,609
|
|
||||
Other
|
15,394
|
|
|
18,588
|
|
|
27,054
|
|
|
35,418
|
|
||||
Total non-interest expense
|
$
|
141,737
|
|
|
$
|
149,916
|
|
|
$
|
289,532
|
|
|
$
|
323,668
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
($ in thousands)
|
||||||||||||||
Total non-interest expense
|
$
|
141,737
|
|
|
$
|
149,916
|
|
|
$
|
289,532
|
|
|
$
|
323,668
|
|
Less: Severance expense (pre-tax)
|
—
|
|
|
—
|
|
|
4,838
|
|
|
—
|
|
||||
Less: Amortization of tax credit investments (pre-tax)
|
4,863
|
|
|
4,470
|
|
|
12,036
|
|
|
9,744
|
|
||||
Less: Legal expenses (litigation reserve impact only, pre-tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
10,500
|
|
||||
Less: Merger related expenses (pre-tax)
|
—
|
|
|
3,248
|
|
|
—
|
|
|
16,776
|
|
||||
Total non-interest expense, adjusted
|
$
|
136,874
|
|
|
$
|
142,198
|
|
|
$
|
272,658
|
|
|
$
|
286,648
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
220,234
|
|
|
$
|
210,752
|
|
|
$
|
438,882
|
|
|
$
|
418,350
|
|
Total non-interest income
|
27,603
|
|
|
38,069
|
|
|
135,276
|
|
|
70,320
|
|
||||
Less: Gain on sale-leaseback transaction (pre-tax)
|
—
|
|
|
—
|
|
|
78,505
|
|
|
—
|
|
||||
Add: Losses on securities transactions, net (pre-tax)
|
(11
|
)
|
|
36
|
|
|
21
|
|
|
801
|
|
||||
Add: Net impairment losses on securities (pre-tax)
|
2,928
|
|
|
—
|
|
|
2,928
|
|
|
—
|
|
||||
Total net interest income and non-interest income
|
$
|
250,754
|
|
|
$
|
248,857
|
|
|
$
|
498,602
|
|
|
$
|
489,471
|
|
Efficiency ratio
|
57.19
|
%
|
|
60.25
|
%
|
|
50.43
|
%
|
|
66.23
|
%
|
||||
Efficiency ratio, adjusted
|
54.58
|
%
|
|
57.14
|
%
|
|
54.68
|
%
|
|
58.56
|
%
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||
|
Consumer
Lending
|
|
Commercial
Lending
|
|
Investment
Management
|
|
Corporate
and Other
Adjustments
|
|
Total
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||
Average interest earning assets
|
$
|
6,756,322
|
|
|
$
|
18,796,093
|
|
|
$
|
4,324,969
|
|
|
$
|
—
|
|
|
$
|
29,877,384
|
|
Income (loss) before income taxes
|
18,658
|
|
|
90,652
|
|
|
6,917
|
|
|
(12,227
|
)
|
|
104,000
|
|
|||||
Annualized return on average interest earning assets (before tax)
|
1.10
|
%
|
|
1.93
|
%
|
|
0.64
|
%
|
|
N/A
|
|
|
1.39
|
%
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
|
Consumer
Lending
|
|
Commercial
Lending
|
|
Investment
Management
|
|
Corporate
and Other
Adjustments
|
|
Total
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||
Average interest earning assets
|
$
|
6,005,266
|
|
|
$
|
16,834,969
|
|
|
$
|
4,416,724
|
|
|
$
|
—
|
|
|
$
|
27,256,959
|
|
Income (loss) before income taxes
|
15,713
|
|
|
78,640
|
|
|
11,761
|
|
|
(14,351
|
)
|
|
91,763
|
|
|||||
Annualized return on average interest earning assets (before tax)
|
1.05
|
%
|
|
1.87
|
%
|
|
1.07
|
%
|
|
N/A
|
|
|
1.35
|
%
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||
|
Consumer
Lending
|
|
Commercial
Lending
|
|
Investment
Management
|
|
Corporate
and Other
Adjustments
|
|
Total
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||
Average interest earning assets
|
$
|
6,788,511
|
|
|
$
|
18,615,885
|
|
|
$
|
4,316,619
|
|
|
$
|
—
|
|
|
$
|
29,721,015
|
|
Income (loss) before income taxes
|
37,713
|
|
|
173,164
|
|
|
15,659
|
|
|
47,990
|
|
|
274,526
|
|
|||||
Annualized return on average interest earning assets (before tax)
|
1.11
|
%
|
|
1.86
|
%
|
|
0.73
|
%
|
|
N/A
|
|
|
1.85
|
%
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
|
Consumer
Lending
|
|
Commercial
Lending
|
|
Investment
Management
|
|
Corporate
and Other
Adjustments
|
|
Total
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||
Average interest earning assets
|
$
|
5,953,524
|
|
|
$
|
16,619,573
|
|
|
$
|
4,432,184
|
|
|
$
|
—
|
|
|
$
|
27,005,281
|
|
Income (loss) before income taxes
|
30,760
|
|
|
145,606
|
|
|
20,830
|
|
|
(50,284
|
)
|
|
146,912
|
|
|||||
Annualized return on average interest earning assets (before tax)
|
1.03
|
%
|
|
1.75
|
%
|
|
0.94
|
%
|
|
N/A
|
|
|
1.09
|
%
|
|
Estimated Change in
Future Net Interest Income
|
|||||
Changes in Interest Rates
|
Dollar
Change
|
|
Percentage
Change
|
|||
(in basis points)
|
($ in thousands)
|
|||||
+200
|
$
|
1,272
|
|
|
0.15
|
%
|
+100
|
4,245
|
|
|
0.49
|
|
|
–100
|
(21,190
|
)
|
|
(2.42
|
)
|
|
–200
|
(29,515
|
)
|
|
(3.37
|
)
|
|
June 30, 2019
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
|
(in thousands)
|
||||||||||||||
Held to maturity investment grades: *
|
|
|
|
|
|
|
|
||||||||
AAA Rated
|
$
|
1,756,431
|
|
|
$
|
25,396
|
|
|
$
|
(9,636
|
)
|
|
$
|
1,772,191
|
|
AA Rated
|
267,312
|
|
|
6,763
|
|
|
(34
|
)
|
|
274,041
|
|
||||
A Rated
|
30,619
|
|
|
555
|
|
|
—
|
|
|
31,174
|
|
||||
BBB Rated
|
5,000
|
|
|
281
|
|
|
—
|
|
|
5,281
|
|
||||
Not rated
|
108,874
|
|
|
316
|
|
|
(7,085
|
)
|
|
102,105
|
|
||||
Total investment securities held to maturity
|
$
|
2,168,236
|
|
|
$
|
33,311
|
|
|
$
|
(16,755
|
)
|
|
$
|
2,184,792
|
|
Available for sale investment grades: *
|
|
|
|
|
|
|
|
||||||||
AAA Rated
|
$
|
1,516,160
|
|
|
$
|
9,521
|
|
|
$
|
(8,653
|
)
|
|
$
|
1,517,028
|
|
AA Rated
|
78,736
|
|
|
525
|
|
|
(106
|
)
|
|
79,155
|
|
||||
A Rated
|
21,092
|
|
|
179
|
|
|
(30
|
)
|
|
21,241
|
|
||||
BBB Rated
|
17,985
|
|
|
350
|
|
|
—
|
|
|
18,335
|
|
||||
Non-investment grade
|
7,498
|
|
|
—
|
|
|
(139
|
)
|
|
7,359
|
|
||||
Not rated
|
36,244
|
|
|
102
|
|
|
(114
|
)
|
|
36,232
|
|
||||
Total investment securities available for sale
|
$
|
1,677,715
|
|
|
$
|
10,677
|
|
|
$
|
(9,042
|
)
|
|
$
|
1,679,350
|
|
|
*
|
Rated using external rating agencies (primarily S&P and Moody’s). Ratings categories include the entire range. For example, “A rated” includes A+, A, and A-. Split rated securities with two ratings are categorized at the higher of the rating levels.
|
|
June 30,
2019 |
|
March 31,
2019 |
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
||||||||||
|
($ in thousands)
|
||||||||||||||||||
Loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
4,615,765
|
|
|
$
|
4,504,927
|
|
|
$
|
4,331,032
|
|
|
$
|
4,015,280
|
|
|
$
|
3,829,525
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
12,798,017
|
|
|
12,665,425
|
|
|
12,407,275
|
|
|
12,251,231
|
|
|
11,913,830
|
|
|||||
Construction
|
1,528,968
|
|
|
1,454,199
|
|
|
1,488,132
|
|
|
1,416,259
|
|
|
1,376,732
|
|
|||||
Total commercial real estate
|
14,326,985
|
|
|
14,119,624
|
|
|
13,895,407
|
|
|
13,667,490
|
|
|
13,290,562
|
|
|||||
Residential mortgage
|
4,072,450
|
|
|
4,071,237
|
|
|
4,111,400
|
|
|
3,782,972
|
|
|
3,528,682
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
501,646
|
|
|
513,066
|
|
|
517,089
|
|
|
521,797
|
|
|
520,849
|
|
|||||
Automobile
|
1,362,466
|
|
|
1,347,759
|
|
|
1,319,571
|
|
|
1,288,902
|
|
|
1,281,735
|
|
|||||
Other consumer
|
922,850
|
|
|
866,505
|
|
|
860,970
|
|
|
834,849
|
|
|
783,363
|
|
|||||
Total consumer loans
|
2,786,962
|
|
|
2,727,330
|
|
|
2,697,630
|
|
|
2,645,548
|
|
|
2,585,947
|
|
|||||
Total loans *
|
$
|
25,802,162
|
|
|
$
|
25,423,118
|
|
|
$
|
25,035,469
|
|
|
$
|
24,111,290
|
|
|
$
|
23,234,716
|
|
As a percent of total loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
17.9
|
%
|
|
17.7
|
%
|
|
17.3
|
%
|
|
16.7
|
%
|
|
16.5
|
%
|
|||||
Commercial real estate
|
55.5
|
|
|
55.6
|
|
|
55.5
|
|
|
56.6
|
|
|
57.2
|
|
|||||
Residential mortgage
|
15.8
|
|
|
16.0
|
|
|
16.4
|
|
|
15.7
|
|
|
15.2
|
|
|||||
Consumer loans
|
10.8
|
|
|
10.7
|
|
|
10.8
|
|
|
11.0
|
|
|
11.1
|
|
|||||
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
*
|
Includes net unearned premiums and deferred loan costs of $19.6 million, $20.5 million, $21.5 million, $16.7 million and $18.7 million at June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, and June 30, 2018, respectively.
|
|
Three Months Ended June 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
Carrying
Amount
|
|
Accretable
Yield
|
|
Carrying
Amount
|
|
Accretable
Yield
|
||||||||
|
(in thousands)
|
||||||||||||||
PCI loans:
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of the period
|
$
|
4,004,340
|
|
|
$
|
890,771
|
|
|
$
|
4,915,833
|
|
|
$
|
691,086
|
|
Accretion
|
55,014
|
|
|
(55,014
|
)
|
|
60,536
|
|
|
(60,536
|
)
|
||||
Payments received
|
(286,204
|
)
|
|
—
|
|
|
(328,620
|
)
|
|
—
|
|
||||
Net increase in expected cash flows
|
—
|
|
|
18,130
|
|
|
—
|
|
|
—
|
|
||||
Transfers to other real estate owned
|
(1,193
|
)
|
|
—
|
|
|
(48
|
)
|
|
—
|
|
||||
Balance, end of the period
|
$
|
3,771,957
|
|
|
$
|
853,887
|
|
|
$
|
4,647,701
|
|
|
$
|
630,550
|
|
|
Six Months Ended June 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
Carrying
Amount
|
|
Accretable
Yield
|
|
Carrying
Amount
|
|
Accretable
Yield
|
||||||||
|
(in thousands)
|
||||||||||||||
PCI loans:
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of the period
|
$
|
4,190,086
|
|
|
$
|
875,958
|
|
|
$
|
1,387,215
|
|
|
$
|
282,009
|
|
Acquisition
|
—
|
|
|
—
|
|
|
3,744,682
|
|
|
474,208
|
|
||||
Accretion
|
108,506
|
|
|
(108,506
|
)
|
|
125,667
|
|
|
(125,667
|
)
|
||||
Payments received
|
(524,834
|
)
|
|
—
|
|
|
(609,670
|
)
|
|
—
|
|
||||
Net increase in expected cash flows
|
—
|
|
|
86,435
|
|
|
—
|
|
|
—
|
|
||||
Transfers to other real estate owned
|
(1,801
|
)
|
|
—
|
|
|
(193
|
)
|
|
—
|
|
||||
Balance, end of the period
|
$
|
3,771,957
|
|
|
$
|
853,887
|
|
|
$
|
4,647,701
|
|
|
$
|
630,550
|
|
|
June 30,
2019 |
|
March 31,
2019 |
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
||||||||||
|
($ in thousands)
|
||||||||||||||||||
Accruing past due loans: *
|
|
||||||||||||||||||
30 to 59 days past due:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
14,119
|
|
|
$
|
5,120
|
|
|
$
|
13,085
|
|
|
$
|
9,462
|
|
|
$
|
6,780
|
|
Commercial real estate
|
6,202
|
|
|
39,362
|
|
|
9,521
|
|
|
3,387
|
|
|
4,323
|
|
|||||
Construction
|
—
|
|
|
1,911
|
|
|
2,829
|
|
|
15,576
|
|
|
175
|
|
|||||
Residential mortgage
|
19,131
|
|
|
15,856
|
|
|
16,576
|
|
|
10,058
|
|
|
7,961
|
|
|||||
Total Consumer
|
11,932
|
|
|
6,647
|
|
|
9,740
|
|
|
7,443
|
|
|
6,573
|
|
|||||
Total 30 to 59 days past due
|
51,384
|
|
|
68,896
|
|
|
51,751
|
|
|
45,926
|
|
|
25,812
|
|
|||||
60 to 89 days past due:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
4,135
|
|
|
1,756
|
|
|
3,768
|
|
|
1,431
|
|
|
1,533
|
|
|||||
Commercial real estate
|
354
|
|
|
2,156
|
|
|
530
|
|
|
2,502
|
|
|
—
|
|
|||||
Construction
|
1,342
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|||||
Residential mortgage
|
3,635
|
|
|
3,635
|
|
|
2,458
|
|
|
3,270
|
|
|
1,978
|
|
|||||
Total Consumer
|
1,484
|
|
|
990
|
|
|
1,386
|
|
|
1,249
|
|
|
860
|
|
|||||
Total 60 to 89 days past due
|
10,950
|
|
|
8,537
|
|
|
8,142
|
|
|
8,488
|
|
|
4,371
|
|
|||||
90 or more days past due:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
3,298
|
|
|
2,670
|
|
|
6,156
|
|
|
1,618
|
|
|
560
|
|
|||||
Commercial real estate
|
—
|
|
|
—
|
|
|
27
|
|
|
27
|
|
|
27
|
|
|||||
Residential mortgage
|
1,054
|
|
|
1,402
|
|
|
1,288
|
|
|
1,877
|
|
|
2,324
|
|
|||||
Total Consumer
|
359
|
|
|
523
|
|
|
341
|
|
|
282
|
|
|
198
|
|
|||||
Total 90 or more days past due
|
4,711
|
|
|
4,595
|
|
|
7,812
|
|
|
3,804
|
|
|
3,109
|
|
|||||
Total accruing past due loans
|
$
|
67,045
|
|
|
$
|
82,028
|
|
|
$
|
67,705
|
|
|
$
|
58,218
|
|
|
$
|
33,292
|
|
Non-accrual loans: *
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
76,216
|
|
|
$
|
76,270
|
|
|
$
|
70,096
|
|
|
$
|
52,929
|
|
|
$
|
53,596
|
|
Commercial real estate
|
6,231
|
|
|
2,663
|
|
|
2,372
|
|
|
7,103
|
|
|
7,452
|
|
|||||
Construction
|
—
|
|
|
378
|
|
|
356
|
|
|
—
|
|
|
1,100
|
|
|||||
Residential mortgage
|
12,069
|
|
|
11,921
|
|
|
12,917
|
|
|
16,083
|
|
|
19,303
|
|
|||||
Total Consumer
|
1,999
|
|
|
2,178
|
|
|
2,655
|
|
|
2,248
|
|
|
3,003
|
|
|||||
Total non-accrual loans
|
96,515
|
|
|
93,410
|
|
|
88,396
|
|
|
78,363
|
|
|
84,454
|
|
|||||
Other real estate owned (OREO)
|
7,161
|
|
|
7,317
|
|
|
9,491
|
|
|
9,863
|
|
|
11,760
|
|
|||||
Other repossessed assets
|
2,358
|
|
|
2,628
|
|
|
744
|
|
|
445
|
|
|
864
|
|
|||||
Non-accrual debt securities **
|
680
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total non-performing assets (NPAs)
|
$
|
106,714
|
|
|
$
|
103,355
|
|
|
$
|
98,631
|
|
|
$
|
88,671
|
|
|
$
|
97,078
|
|
Performing troubled debt restructured loans
|
$
|
74,385
|
|
|
$
|
73,081
|
|
|
$
|
77,216
|
|
|
$
|
81,141
|
|
|
$
|
83,694
|
|
Total non-accrual loans as a % of loans
|
0.37
|
%
|
|
0.37
|
%
|
|
0.35
|
%
|
|
0.33
|
%
|
|
0.36
|
%
|
|||||
Total NPAs as a % of loans and NPAs
|
0.41
|
|
|
0.40
|
|
|
0.39
|
|
|
0.37
|
|
|
0.42
|
|
|||||
Total accruing past due and non-accrual loans as a % of loans
|
0.63
|
|
|
0.69
|
|
|
0.62
|
|
|
0.57
|
|
|
0.51
|
|
|||||
Allowance for loan losses as a % of non-accrual loans
|
160.71
|
|
|
165.27
|
|
|
171.79
|
|
|
184.99
|
|
|
164.30
|
|
|
**
|
Includes other-than-temporarily impaired special revenue bond classified as available for sale presented at carrying value at June 30, 2019.
|
•
|
segmentation of the loan portfolio based on the major loan categories, which consist of commercial and industrial, commercial real estate (including construction), residential mortgage, and other consumer loans (including automobile and home equity loans);
|
•
|
tracking the historical levels of classified loans and delinquencies;
|
•
|
assessing the nature and trend of loan charge-offs;
|
•
|
providing specific reserves on impaired loans; and
|
•
|
evaluating the PCI loan pools for additional credit impairment subsequent to the acquisition dates.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
June 30,
2019 |
|
March 31,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||||
|
($ in thousands)
|
||||||||||||||||||
Average loans outstanding
|
$
|
25,552,415
|
|
|
$
|
25,254,733
|
|
|
$
|
22,840,235
|
|
|
$
|
25,404,396
|
|
|
$
|
22,573,097
|
|
Beginning balance - Allowance for credit losses
|
158,961
|
|
|
156,295
|
|
|
136,704
|
|
|
156,295
|
|
|
124,452
|
|
|||||
Loans charged-off:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
(3,073
|
)
|
|
(4,282
|
)
|
|
(642
|
)
|
|
(7,355
|
)
|
|
(773
|
)
|
|||||
Commercial real estate
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
|
(348
|
)
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgage
|
—
|
|
|
(15
|
)
|
|
(99
|
)
|
|
(15
|
)
|
|
(167
|
)
|
|||||
Total Consumer
|
(1,752
|
)
|
|
(2,028
|
)
|
|
(1,422
|
)
|
|
(3,780
|
)
|
|
(2,633
|
)
|
|||||
Total charge-offs
|
(4,825
|
)
|
|
(6,325
|
)
|
|
(2,201
|
)
|
|
(11,150
|
)
|
|
(3,921
|
)
|
|||||
Charged-off loans recovered:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
1,195
|
|
|
483
|
|
|
819
|
|
|
1,678
|
|
|
2,926
|
|
|||||
Commercial real estate
|
22
|
|
|
21
|
|
|
15
|
|
|
43
|
|
|
384
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgage
|
9
|
|
|
1
|
|
|
180
|
|
|
10
|
|
|
260
|
|
|||||
Total Consumer
|
617
|
|
|
486
|
|
|
495
|
|
|
1,103
|
|
|
963
|
|
|||||
Total recoveries
|
1,843
|
|
|
991
|
|
|
1,509
|
|
|
2,834
|
|
|
4,533
|
|
|||||
Net (charge-offs) recoveries
|
(2,982
|
)
|
|
(5,334
|
)
|
|
(692
|
)
|
|
(8,316
|
)
|
|
612
|
|
|||||
Provision charged for credit losses
|
2,100
|
|
|
8,000
|
|
|
7,142
|
|
|
10,100
|
|
|
18,090
|
|
|||||
Ending balance - Allowance for credit losses
|
$
|
158,079
|
|
|
$
|
158,961
|
|
|
$
|
143,154
|
|
|
$
|
158,079
|
|
|
$
|
143,154
|
|
Components of allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
$
|
155,105
|
|
|
$
|
154,381
|
|
|
$
|
138,762
|
|
|
$
|
155,105
|
|
|
$
|
138,762
|
|
Allowance for unfunded letters of credit
|
2,974
|
|
|
4,580
|
|
|
4,392
|
|
|
2,974
|
|
|
4,392
|
|
|||||
Allowance for credit losses
|
$
|
158,079
|
|
|
$
|
158,961
|
|
|
$
|
143,154
|
|
|
$
|
158,079
|
|
|
$
|
143,154
|
|
Components of provision for credit losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for losses on loans
|
$
|
3,706
|
|
|
$
|
7,856
|
|
|
$
|
6,592
|
|
|
$
|
11,562
|
|
|
$
|
17,294
|
|
Provision for unfunded letters of credit
|
(1,606
|
)
|
|
144
|
|
|
550
|
|
|
(1,462
|
)
|
|
796
|
|
|||||
Provision for credit losses
|
$
|
2,100
|
|
|
$
|
8,000
|
|
|
$
|
7,142
|
|
|
$
|
10,100
|
|
|
$
|
18,090
|
|
Annualized ratio of net charge-offs (recoveries) to average loans outstanding
|
0.05
|
%
|
|
0.08
|
%
|
|
0.01
|
%
|
|
0.07
|
%
|
|
(0.01
|
)%
|
|||||
Allowance for credit losses as a % of non-PCI loans
|
0.72
|
|
|
0.74
|
|
|
0.77
|
|
|
0.72
|
|
|
0.77
|
|
|||||
Allowance for credit losses as a % of total loans
|
0.61
|
|
|
0.63
|
|
|
0.62
|
|
|
0.61
|
|
|
0.62
|
|
|
June 30, 2019
|
|
March 31, 2019
|
|
June 30, 2018
|
|||||||||||||||
|
Allowance
Allocation
|
|
Allocation
as a % of
Loan
Category
|
|
Allowance
Allocation
|
|
Allocation
as a % of
Loan
Category
|
|
Allowance
Allocation
|
|
Allocation
as a % of
Loan
Category
|
|||||||||
|
($ in thousands)
|
|||||||||||||||||||
Loan Category:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and Industrial loans*
|
$
|
97,358
|
|
|
2.11
|
%
|
|
$
|
99,210
|
|
|
2.20
|
%
|
|
$
|
78,649
|
|
|
2.05
|
%
|
Commercial real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial real estate
|
23,796
|
|
|
0.19
|
%
|
|
24,261
|
|
|
0.19
|
%
|
|
33,234
|
|
|
0.28
|
%
|
|||
Construction
|
25,182
|
|
|
1.65
|
%
|
|
23,501
|
|
|
1.62
|
%
|
|
20,578
|
|
|
1.49
|
%
|
|||
Total commercial real estate loans
|
48,978
|
|
|
0.34
|
%
|
|
47,762
|
|
|
0.34
|
%
|
|
53,812
|
|
|
0.40
|
%
|
|||
Residential mortgage loans
|
5,219
|
|
|
0.13
|
%
|
|
5,139
|
|
|
0.13
|
%
|
|
4,624
|
|
|
0.13
|
%
|
|||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Home equity
|
505
|
|
|
0.10
|
%
|
|
523
|
|
|
0.10
|
%
|
|
604
|
|
|
0.12
|
%
|
|||
Auto and other consumer
|
6,019
|
|
|
0.26
|
%
|
|
6,327
|
|
|
0.29
|
%
|
|
5,465
|
|
|
0.26
|
%
|
|||
Total consumer loans
|
6,524
|
|
|
0.23
|
%
|
|
6,850
|
|
|
0.25
|
%
|
|
6,069
|
|
|
0.23
|
%
|
|||
Total allowance for credit losses
|
$
|
158,079
|
|
|
0.61
|
%
|
|
$
|
158,961
|
|
|
0.63
|
%
|
|
$
|
143,154
|
|
|
0.62
|
%
|
|
*
|
Includes the reserve for unfunded letters of credit.
|
|
Actual
|
|
Minimum Capital
Requirements
|
|
To Be Well Capitalized
Under Prompt Corrective
Action Provision
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
|
($ in thousands)
|
|||||||||||||||||||
As of June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Risk-based Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Valley
|
$
|
2,913,740
|
|
|
11.39
|
%
|
|
$
|
2,686,127
|
|
|
10.500
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Valley National Bank
|
2,839,065
|
|
|
11.11
|
|
|
2,683,597
|
|
|
10.500
|
|
|
$
|
2,555,806
|
|
|
10.00
|
%
|
||
Common Equity Tier 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Valley
|
2,196,856
|
|
|
8.59
|
|
|
1,790,752
|
|
|
7.000
|
|
|
N/A
|
|
|
N/A
|
|
|||
Valley National Bank
|
2,580,986
|
|
|
10.10
|
|
|
1,789,064
|
|
|
7.000
|
|
|
1,661,274
|
|
|
6.50
|
|
|||
Tier 1 Risk-based Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Valley
|
2,411,661
|
|
|
9.43
|
|
|
2,174,484
|
|
|
8.500
|
|
|
N/A
|
|
|
N/A
|
|
|||
Valley National Bank
|
2,580,986
|
|
|
10.10
|
|
|
2,172,435
|
|
|
8.500
|
|
|
2,044,645
|
|
|
8.00
|
|
|||
Tier 1 Leverage Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Valley
|
2,411,661
|
|
|
7.62
|
|
|
1,265,166
|
|
|
4.00
|
|
|
N/A
|
|
|
N/A
|
|
|||
Valley National Bank
|
2,580,986
|
|
|
8.17
|
|
|
1,264,404
|
|
|
4.00
|
|
|
1,580,505
|
|
|
5.00
|
|
|||
As of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Risk-based Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Valley
|
$
|
2,786,971
|
|
|
11.34
|
%
|
|
$
|
2,426,975
|
|
|
9.875
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Valley National Bank
|
2,698,654
|
|
|
10.99
|
|
|
2,424,059
|
|
|
9.875
|
|
|
$
|
2,454,743
|
|
|
10.00
|
%
|
||
Common Equity Tier 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Valley
|
2,071,871
|
|
|
8.43
|
|
|
1,566,781
|
|
|
6.375
|
|
|
N/A
|
|
|
N/A
|
|
|||
Valley National Bank
|
2,442,359
|
|
|
9.95
|
|
|
1,564,899
|
|
|
6.375
|
|
|
1,595,583
|
|
|
6.50
|
|
|||
Tier 1 Risk-based Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Valley
|
2,286,676
|
|
|
9.30
|
|
|
1,935,435
|
|
|
7.875
|
|
|
N/A
|
|
|
N/A
|
|
|||
Valley National Bank
|
2,442,359
|
|
|
9.95
|
|
|
1,933,110
|
|
|
7.875
|
|
|
1,963,794
|
|
|
8.00
|
|
|||
Tier 1 Leverage Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Valley
|
2,286,676
|
|
|
7.57
|
|
|
1,208,882
|
|
|
4.00
|
|
|
N/A
|
|
|
N/A
|
|
|||
Valley National Bank
|
2,442,359
|
|
|
8.09
|
|
|
1,207,039
|
|
|
4.00
|
|
|
1,508,798
|
|
|
5.00
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
($ in thousands, except for share data)
|
||||||
Common shares outstanding
|
331,788,149
|
|
|
331,431,217
|
|
||
Shareholders’ equity
|
$
|
3,504,118
|
|
|
$
|
3,350,454
|
|
Less: Preferred stock
|
209,691
|
|
|
209,691
|
|
||
Less: Goodwill and other intangible assets
|
1,155,250
|
|
|
1,161,655
|
|
||
Tangible common shareholders’ equity
|
$
|
2,139,177
|
|
|
$
|
1,979,108
|
|
Tangible book value per common share
|
$
|
6.45
|
|
|
$
|
5.97
|
|
Book value per common share
|
$
|
9.93
|
|
|
$
|
9.48
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Period
|
|
Total Number of
Shares Purchased (1)
|
|
Average
Price Paid
Per Share
|
|
Total Number of Shares
Purchased as Part of
Publicly Announced
Plans (2)
|
|
Maximum Number of
Shares that May Yet Be
Purchased Under the Plans (2)
|
|||||
April 1, 2019 to April 30, 2019
|
|
599
|
|
|
$
|
9.81
|
|
|
—
|
|
|
4,112,465
|
|
May 1, 2019 to May 31, 2019
|
|
8,464
|
|
|
10.27
|
|
|
—
|
|
|
4,112,465
|
|
|
June 1, 2019 to June 30, 2019
|
|
223
|
|
|
9.82
|
|
|
—
|
|
|
4,112,465
|
|
|
Total
|
|
9,286
|
|
|
$
|
10.23
|
|
|
—
|
|
|
|
|
(1)
|
Represents repurchases made in connection with the vesting of employee restricted stock awards.
|
(2)
|
On January 17, 2007, Valley publicly announced its intention to repurchase up to 4.7 million outstanding common shares in the open market or in privately negotiated transactions. The repurchase plan has no stated expiration date. No repurchase plans or programs expired or terminated during the three months ended June 30, 2019.
|
Item 6.
|
Exhibits
|
|
*
|
Filed herewith.
|
|
|
|
|
|
|
|
|
|
VALLEY NATIONAL BANCORP
|
|
|
|
|
(Registrant)
|
|
|
|
||
Date:
|
|
|
|
/s/ Ira Robbins
|
August 8, 2019
|
|
|
|
Ira Robbins
|
|
|
|
|
Chairman of the Board, President
|
|
|
|
|
and Chief Executive Officer
|
|
|
|
||
Date:
|
|
|
|
/s/ Alan D. Eskow
|
August 8, 2019
|
|
|
|
Alan D. Eskow
|
|
|
|
|
Senior Executive Vice President and
|
|
|
|
|
Chief Financial Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Valley National Bancorp;
|
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(s) 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(s) 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.
|
|
/s/ Ira Robbins
|
Ira Robbins
|
Chairman of the Board, President and
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Valley National Bancorp;
|
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(s) 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(s) 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.
|
|
/s/ Alan D. Eskow
|
Alan D. Eskow
|
Senior Executive Vice President and
Chief Financial Officer
|
|
/s/ Ira Robbins
|
Ira Robbins
|
Chairman of the Board, President and
Chief Executive Officer
|
August 8, 2019
|
|
|
/s/ Alan D. Eskow
|
Alan D. Eskow
|
Senior Executive Vice President and
|
Chief Financial Officer
|
August 8, 2019
|