|
Montana
|
|
81-0331430
|
|
(State or other jurisdiction of
incorporation or organization)
|
|
(IRS Employer
Identification No.)
|
|
|
|
|
|
401 North 31st Street
|
|
|
|
Billings,
|
MT
|
|
59116-0918
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Class A common stock, no par value
|
FIBK
|
NASDAQ
|
Large accelerated filer
|
☒
|
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
|
|
|
Emerging growth company
|
☐
|
September 30, 2019 – Class A common stock
|
43,034,082
|
|
September 30, 2019 – Class B common stock
|
22,195,679
|
|
|
Quarterly Report on Form 10-Q
|
||
|
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
|
|
|
Index
|
|
|
September 30, 2019
|
|
|
|
Page Nos.
|
|
|
|
|
|
|
Item 1.
|
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
|
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
(Unaudited)
|
|||||||
|
September 30,
2019 |
|
December 31,
2018 |
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
298.4
|
|
|
$
|
244.1
|
|
Interest bearing deposits in banks
|
971.1
|
|
|
577.8
|
|
||
Federal funds sold
|
0.1
|
|
|
0.1
|
|
||
Total cash and cash equivalents
|
1,269.6
|
|
|
822.0
|
|
||
Investment securities:
|
|
|
|
||||
Available-for-sale
|
2,732.2
|
|
|
2,270.7
|
|
||
Held-to-maturity (estimated fair values of $97.2 and $400.7 at September 30, 2019 and December 31, 2018, respectively)
|
94.9
|
|
|
406.8
|
|
||
Total investment securities
|
2,827.1
|
|
|
2,677.5
|
|
||
Loans held for investment
|
8,992.6
|
|
|
8,470.4
|
|
||
Mortgage loans held for sale
|
108.9
|
|
|
33.3
|
|
||
Total loans
|
9,101.5
|
|
|
8,503.7
|
|
||
Less allowance for loan losses
|
75.0
|
|
|
73.0
|
|
||
Net loans
|
9,026.5
|
|
|
8,430.7
|
|
||
Goodwill
|
622.6
|
|
|
546.7
|
|
||
Company-owned life insurance
|
292.8
|
|
|
275.1
|
|
||
Premises and equipment, net of accumulated depreciation
|
302.8
|
|
|
245.2
|
|
||
Core deposit intangibles, net of accumulated amortization
|
65.0
|
|
|
56.9
|
|
||
Accrued interest receivable
|
51.1
|
|
|
44.9
|
|
||
Mortgage servicing rights, net of accumulated amortization and impairment reserve
|
29.8
|
|
|
27.7
|
|
||
Other real estate owned (“OREO”)
|
17.8
|
|
|
14.4
|
|
||
Other assets
|
196.5
|
|
|
159.1
|
|
||
Total assets
|
$
|
14,701.6
|
|
|
$
|
13,300.2
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Non-interest bearing
|
$
|
3,639.7
|
|
|
$
|
3,158.3
|
|
Interest bearing
|
8,159.9
|
|
|
7,522.4
|
|
||
Total deposits
|
11,799.6
|
|
|
10,680.7
|
|
||
Securities sold under repurchase agreements
|
636.9
|
|
|
712.4
|
|
||
Accounts payable and accrued expenses
|
145.8
|
|
|
94.1
|
|
||
Accrued interest payable
|
12.3
|
|
|
7.8
|
|
||
Deferred tax liability, net
|
23.6
|
|
|
8.6
|
|
||
Long-term debt
|
13.9
|
|
|
15.8
|
|
||
Subordinated debentures held by subsidiary trusts
|
86.9
|
|
|
86.9
|
|
||
Total liabilities
|
12,719.0
|
|
|
11,606.3
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Nonvoting noncumulative preferred stock without par value; authorized 100,000 shares; no shares issued and outstanding as of September 30, 2019 or December 31, 2018
|
—
|
|
|
—
|
|
||
Common stock
|
1,047.8
|
|
|
866.7
|
|
||
Retained earnings
|
921.4
|
|
|
851.8
|
|
||
Accumulated other comprehensive gain (loss), net
|
13.4
|
|
|
(24.6
|
)
|
||
Total stockholders’ equity
|
1,982.6
|
|
|
1,693.9
|
|
||
Total liabilities and stockholders’ equity
|
$
|
14,701.6
|
|
|
$
|
13,300.2
|
|
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
|
|||||||||||||||
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest income:
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans
|
$
|
120.0
|
|
|
$
|
103.9
|
|
|
$
|
352.3
|
|
|
$
|
292.1
|
|
Interest and dividends on investment securities:
|
|
|
|
|
|
|
|
||||||||
Taxable
|
15.1
|
|
|
13.9
|
|
|
45.9
|
|
|
41.0
|
|
||||
Exempt from federal taxes
|
0.5
|
|
|
0.6
|
|
|
1.5
|
|
|
1.8
|
|
||||
Interest on deposits in banks
|
5.7
|
|
|
2.8
|
|
|
14.3
|
|
|
6.9
|
|
||||
Total interest income
|
141.3
|
|
|
121.2
|
|
|
414.0
|
|
|
341.8
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
||||||||
Interest on deposits
|
13.4
|
|
|
8.9
|
|
|
39.6
|
|
|
22.3
|
|
||||
Interest on securities sold under repurchase agreements
|
1.0
|
|
|
0.7
|
|
|
3.1
|
|
|
1.8
|
|
||||
Interest on other borrowed funds
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.2
|
|
||||
Interest on other debt
|
0.3
|
|
|
0.4
|
|
|
1.0
|
|
|
0.9
|
|
||||
Interest on subordinated debentures held by subsidiary trusts
|
1.1
|
|
|
1.1
|
|
|
3.5
|
|
|
3.0
|
|
||||
Total interest expense
|
15.8
|
|
|
11.2
|
|
|
47.2
|
|
|
28.2
|
|
||||
Net interest income
|
125.5
|
|
|
110.0
|
|
|
366.8
|
|
|
313.6
|
|
||||
Provision for loan losses
|
2.6
|
|
|
2.0
|
|
|
10.1
|
|
|
7.0
|
|
||||
Net interest income after provision for loan losses
|
122.9
|
|
|
108.0
|
|
|
356.7
|
|
|
306.6
|
|
||||
Non-interest income:
|
|
|
|
|
|
|
|
||||||||
Payment services revenues
|
10.8
|
|
|
10.1
|
|
|
30.7
|
|
|
33.5
|
|
||||
Mortgage banking revenues
|
10.5
|
|
|
6.7
|
|
|
24.3
|
|
|
19.3
|
|
||||
Wealth management revenues
|
5.9
|
|
|
5.8
|
|
|
17.8
|
|
|
17.5
|
|
||||
Service charges on deposit accounts
|
5.3
|
|
|
5.7
|
|
|
15.7
|
|
|
16.6
|
|
||||
Other service charges, commissions and fees
|
4.2
|
|
|
3.4
|
|
|
12.7
|
|
|
11.1
|
|
||||
Investment securities gains (losses), net
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Other income
|
4.0
|
|
|
4.5
|
|
|
13.4
|
|
|
11.0
|
|
||||
Total non-interest income
|
40.8
|
|
|
36.2
|
|
|
114.7
|
|
|
109.0
|
|
||||
Non-interest expense:
|
|
|
|
|
|
|
|
||||||||
Salaries and wages
|
40.6
|
|
|
36.8
|
|
|
117.1
|
|
|
105.7
|
|
||||
Employee benefits
|
11.9
|
|
|
11.9
|
|
|
40.3
|
|
|
35.5
|
|
||||
Outsourced technology services
|
7.9
|
|
|
6.8
|
|
|
23.9
|
|
|
20.9
|
|
||||
Occupancy, net
|
7.1
|
|
|
6.5
|
|
|
21.2
|
|
|
18.8
|
|
||||
Furniture and equipment
|
3.3
|
|
|
3.5
|
|
|
10.2
|
|
|
9.5
|
|
||||
OREO expense, net of income
|
(0.8
|
)
|
|
0.2
|
|
|
(0.5
|
)
|
|
0.3
|
|
||||
Professional fees
|
3.5
|
|
|
1.9
|
|
|
7.7
|
|
|
5.2
|
|
||||
FDIC insurance premiums
|
0.4
|
|
|
1.4
|
|
|
3.5
|
|
|
4.3
|
|
||||
Mortgage servicing rights amortization
|
1.2
|
|
|
0.8
|
|
|
3.1
|
|
|
2.3
|
|
||||
Core deposit intangibles amortization
|
3.0
|
|
|
2.0
|
|
|
8.3
|
|
|
5.5
|
|
||||
Other expenses
|
17.4
|
|
|
15.8
|
|
|
50.8
|
|
|
48.1
|
|
||||
Acquisition related expenses
|
3.8
|
|
|
3.1
|
|
|
19.6
|
|
|
5.4
|
|
||||
Total non-interest expense
|
99.3
|
|
|
90.7
|
|
|
305.2
|
|
|
261.5
|
|
||||
Income before income tax expense
|
64.4
|
|
|
53.5
|
|
|
166.2
|
|
|
154.1
|
|
||||
Income tax expense
|
15.3
|
|
|
12.1
|
|
|
37.6
|
|
|
34.3
|
|
||||
Net income
|
$
|
49.1
|
|
|
$
|
41.4
|
|
|
$
|
128.6
|
|
|
$
|
119.8
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share (Basic)
|
$
|
0.76
|
|
|
$
|
0.71
|
|
|
$
|
2.03
|
|
|
$
|
2.10
|
|
Earnings per common share (Diluted)
|
$
|
0.76
|
|
|
$
|
0.71
|
|
|
$
|
2.03
|
|
|
$
|
2.09
|
|
Weighted average common shares outstanding (Basic)
|
64,832,324
|
|
|
58,254,575
|
|
|
63,232,575
|
|
|
56,951,029
|
|
||||
Weighted average common shares outstanding (Diluted)
|
65,043,486
|
|
|
58,640,475
|
|
|
63,471,283
|
|
|
57,330,027
|
|
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
(Unaudited)
|
|||||||||||||
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Net income
|
$
|
49.1
|
|
$
|
41.4
|
|
|
$
|
128.6
|
|
$
|
119.8
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
||||||||
Investment securities available-for sale:
|
|
|
|
|
|
||||||||
Change in net unrealized gains (losses) during period
|
4.2
|
|
(6.3
|
)
|
|
58.0
|
|
(33.9
|
)
|
||||
Reclassification adjustment for net (gains) losses included in income
|
(0.1
|
)
|
—
|
|
|
(0.1
|
)
|
—
|
|
||||
Reclassification adjustment for securities transferred from held-to-maturity to available-for-sale
|
—
|
|
—
|
|
|
(6.0
|
)
|
—
|
|
||||
Change in unamortized loss on available-for-sale securities transferred into held-to-maturity
|
—
|
|
0.5
|
|
|
—
|
|
1.5
|
|
||||
Change in net actuarial gain
|
(0.2
|
)
|
(0.2
|
)
|
|
(0.5
|
)
|
(0.5
|
)
|
||||
Other comprehensive income (loss), before tax
|
3.9
|
|
(6.0
|
)
|
|
51.4
|
|
(32.9
|
)
|
||||
Deferred tax (expense) benefit related to other comprehensive income
|
(1.0
|
)
|
1.6
|
|
|
(13.4
|
)
|
8.6
|
|
||||
Other comprehensive income (loss), net of tax
|
2.9
|
|
(4.4
|
)
|
|
38.0
|
|
(24.3
|
)
|
||||
Comprehensive income, net of tax
|
$
|
52.0
|
|
$
|
37.0
|
|
|
$
|
166.6
|
|
$
|
95.5
|
|
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
(In millions, except share and per share data)
(Unaudited)
|
|||||||||||||||
|
Three Months Ended September 30,
|
||||||||||||||
|
Common
stock |
|
Retained
earnings |
|
Accumulated
other comprehensive income (loss) |
|
Total
stockholders’ equity |
||||||||
Balance at June 30, 2019
|
$
|
1,045.6
|
|
|
$
|
892.5
|
|
|
$
|
10.5
|
|
|
$
|
1,948.6
|
|
Net income
|
—
|
|
|
49.1
|
|
|
—
|
|
|
49.1
|
|
||||
Other comprehensive income, net of tax expense
|
—
|
|
|
—
|
|
|
2.9
|
|
|
2.9
|
|
||||
Common stock transactions:
|
|
|
|
|
|
|
|
|
|||||||
4,200 common shares purchased and retired
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
662 non-vested common shares issued
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
14,502 non-vested common shares forfeited or canceled
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
18,983 stock options exercised, net of 5,425 shares tendered in payment of option price and income tax withholding amounts
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
||||
Stock-based compensation expense
|
2.0
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
||||
Common cash dividends declared ($0.31 per share)
|
—
|
|
|
(20.2
|
)
|
|
—
|
|
|
(20.2
|
)
|
||||
Balance at September 30, 2019
|
$
|
1,047.8
|
|
|
$
|
921.4
|
|
|
$
|
13.4
|
|
|
$
|
1,982.6
|
|
|
|
|
|
|
|
|
|
||||||||
Balance at June 30, 2018
|
$
|
690.7
|
|
|
$
|
802.6
|
|
|
$
|
(35.0
|
)
|
|
$
|
1,458.3
|
|
Net income
|
—
|
|
|
41.4
|
|
|
—
|
|
|
41.4
|
|
||||
Other comprehensive loss, net of tax expense
|
—
|
|
|
—
|
|
|
(4.4
|
)
|
|
(4.4
|
)
|
||||
Common stock transactions:
|
|
|
|
|
|
|
|
||||||||
1,364 common shares purchased and retired
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
||||
3,837,540 common shares issued
|
173.3
|
|
|
—
|
|
|
—
|
|
|
173.3
|
|
||||
5,048 non-vested common shares issued
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
12,975 non-vested common shares forfeited or canceled
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
20,836 stock options exercised, net of 3,465 shares tendered in payment of option price and income tax withholding amounts
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
||||
Stock-based compensation expense
|
1.3
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
||||
Common cash dividends declared ($0.28 per share)
|
—
|
|
|
(15.7
|
)
|
|
—
|
|
|
(15.7
|
)
|
||||
Balance at September 30, 2018
|
$
|
865.5
|
|
|
$
|
828.3
|
|
|
$
|
(39.4
|
)
|
|
$
|
1,654.4
|
|
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (continued)
(In millions, except share and per share data)
(Unaudited)
|
|||||||||||||||
|
Nine Months Ended September 30,
|
||||||||||||||
|
Common
stock |
|
Retained
earnings |
|
Accumulated
other comprehensive income (loss) |
|
Total
stockholders’ equity |
||||||||
Balance at December 31, 2018
|
$
|
866.7
|
|
|
$
|
851.8
|
|
|
$
|
(24.6
|
)
|
|
$
|
1,693.9
|
|
Net income
|
—
|
|
|
128.6
|
|
|
—
|
|
|
128.6
|
|
||||
Other comprehensive income, net of tax expense
|
—
|
|
|
—
|
|
|
38.0
|
|
|
38.0
|
|
||||
Common stock transactions:
|
|
|
|
|
|
|
|
||||||||
43,560 common shares purchased and retired
|
(2.5
|
)
|
|
—
|
|
|
—
|
|
|
(2.5
|
)
|
||||
4,356,498 common shares issued
|
176.1
|
|
|
—
|
|
|
—
|
|
|
176.1
|
|
||||
211,826 non-vested common shares issued
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
35,919 non-vested common shares forfeited or canceled
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
117,669 stock options exercised, net of 40,533 shares tendered in payment of option price and income tax withholding amounts
|
0.9
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
||||
Stock-based compensation expense
|
6.6
|
|
|
—
|
|
|
—
|
|
|
6.6
|
|
||||
Common cash dividends declared ($0.93 per share)
|
—
|
|
|
(59.0
|
)
|
|
—
|
|
|
(59.0
|
)
|
||||
Balance at September 30, 2019
|
$
|
1,047.8
|
|
|
$
|
921.4
|
|
|
$
|
13.4
|
|
|
$
|
1,982.6
|
|
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2017
|
$
|
687.0
|
|
|
$
|
752.6
|
|
|
$
|
(12.0
|
)
|
|
$
|
1,427.6
|
|
Net income
|
—
|
|
|
119.8
|
|
|
—
|
|
|
119.8
|
|
||||
Reclassification of the income tax effects of the Tax Cut and Jobs Act from AOCI
|
—
|
|
|
3.1
|
|
|
(3.1
|
)
|
|
—
|
|
||||
Other comprehensive loss, net of tax expense
|
—
|
|
|
—
|
|
|
(24.3
|
)
|
|
(24.3
|
)
|
||||
Common stock transactions:
|
|
|
|
|
|
|
|
||||||||
23,960 common shares purchased and retired
|
(1.0
|
)
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
||||
3,848,929 common shares issued
|
173.3
|
|
|
—
|
|
|
—
|
|
|
173.3
|
|
||||
210,039 non-vested common shares issued
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
40,122 non-vested common shares forfeited or canceled
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
148,834 stock options exercised, net of 28,194 shares tendered in payment of option price and income tax withholding amounts
|
1.9
|
|
|
—
|
|
|
—
|
|
|
1.9
|
|
||||
Stock-based compensation expense
|
4.3
|
|
|
—
|
|
|
—
|
|
|
4.3
|
|
||||
Common cash dividends declared ($0.84 per share)
|
—
|
|
|
(47.2
|
)
|
|
—
|
|
|
(47.2
|
)
|
||||
Balance at September 30, 2018
|
$
|
865.5
|
|
|
$
|
828.3
|
|
|
$
|
(39.4
|
)
|
|
$
|
1,654.4
|
|
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
|
|||||||
|
Nine Months Ended September 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
128.6
|
|
|
$
|
119.8
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Provision for loan losses
|
10.1
|
|
|
7.0
|
|
||
Depreciation and amortization
|
29.0
|
|
|
19.9
|
|
||
Net premium amortization on investment securities
|
6.4
|
|
|
7.9
|
|
||
Net gain on investment securities transactions
|
(0.1
|
)
|
|
—
|
|
||
Realized and unrealized net gains on mortgage banking activities
|
(21.1
|
)
|
|
(4.2
|
)
|
||
Net loss (gain) on sale of OREO
|
(1.7
|
)
|
|
(0.4
|
)
|
||
Write-downs of OREO and other assets pending disposal
|
0.7
|
|
|
0.1
|
|
||
Deferred income tax expense
|
0.5
|
|
|
13.2
|
|
||
Net increase in cash surrender value of company-owned life insurance
|
(4.2
|
)
|
|
(3.6
|
)
|
||
Stock-based compensation expense
|
6.6
|
|
|
4.3
|
|
||
Originations of mortgage loans held for sale
|
(770.1
|
)
|
|
(738.3
|
)
|
||
Proceeds from sales of mortgage loans held for sale
|
710.9
|
|
|
747.1
|
|
||
Changes in operating assets and liabilities, net of effects of acquisition:
|
|
|
|
||||
Increase in interest receivable
|
(4.0
|
)
|
|
(6.4
|
)
|
||
Increase in other assets
|
(31.0
|
)
|
|
(0.7
|
)
|
||
(Decrease) increase in accrued interest payable
|
(13.6
|
)
|
|
0.9
|
|
||
Decrease in accounts payable and accrued expenses
|
9.7
|
|
|
5.3
|
|
||
Net cash provided by operating activities
|
56.7
|
|
|
171.9
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of investment securities:
|
|
|
|
||||
Held-to-maturity
|
—
|
|
|
(0.3
|
)
|
||
Available-for-sale
|
(740.3
|
)
|
|
(320.6
|
)
|
||
Proceeds from maturities and pay-downs of investment securities:
|
|
|
|
||||
Held-to-maturity
|
33.2
|
|
|
66.9
|
|
||
Available-for-sale
|
681.9
|
|
|
333.3
|
|
||
Purchases of company-owned life insurance
|
1.6
|
|
|
—
|
|
||
Extensions of credit to customers, net of repayments
|
(136.0
|
)
|
|
(225.5
|
)
|
||
Recoveries of loans charged-off
|
8.2
|
|
|
9.6
|
|
||
Proceeds from sale of OREO
|
14.0
|
|
|
4.3
|
|
||
Proceeds from the sale of Health Savings Accounts
|
0.3
|
|
|
—
|
|
||
Acquisition of bank and bank holding company, net of cash and cash equivalents received
|
298.4
|
|
|
28.2
|
|
||
Capital expenditures, net of sales
|
(10.2
|
)
|
|
(0.5
|
)
|
||
Net cash provided by (used in) investing activities
|
$
|
151.1
|
|
|
$
|
(104.6
|
)
|
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(In millions)
(Unaudited)
|
|||||||
|
Nine Months Ended September 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Net increase in deposits
|
$
|
412.3
|
|
|
$
|
214.4
|
|
Net decrease in securities sold under repurchase agreements
|
(105.9
|
)
|
|
(7.1
|
)
|
||
Net decrease in other borrowed funds
|
(4.1
|
)
|
|
(24.5
|
)
|
||
Repayments of long-term debt
|
(2.0
|
)
|
|
(0.4
|
)
|
||
Advances on long-term debt
|
0.1
|
|
|
2.7
|
|
||
Proceeds from issuance of common stock
|
0.9
|
|
|
1.9
|
|
||
Purchase and retirement of common stock
|
(2.5
|
)
|
|
(1.0
|
)
|
||
Dividends paid to common stockholders
|
(59.0
|
)
|
|
(47.2
|
)
|
||
Net cash provided by financing activities
|
239.8
|
|
|
138.8
|
|
||
Net increase in cash and cash equivalents
|
447.6
|
|
|
206.1
|
|
||
Cash and cash equivalents at beginning of period
|
822.0
|
|
|
758.9
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,269.6
|
|
|
$
|
965.0
|
|
|
|
|
|
||||
Supplemental disclosures of cash flow information:
|
|
|
|
||||
Cash paid during the period for income taxes
|
$
|
34.8
|
|
|
$
|
15.8
|
|
Cash paid during the period for interest expense
|
42.7
|
|
|
27.1
|
|
||
|
|
|
|
||||
Supplemental disclosures of non-cash investing and financing activities:
|
|
|
|
||||
Amortization of unrealized gains and losses on transfers of securities
|
$
|
—
|
|
|
$
|
1.4
|
|
Right-of-use assets obtained in exchange for operating lease liabilities
|
39.6
|
|
|
—
|
|
||
Transfer of loans to other real estate owned
|
14.0
|
|
|
10.7
|
|
||
Capitalization of internally originated mortgage servicing rights
|
2.8
|
|
|
4.5
|
|
||
|
|
|
|
||||
Supplemental schedule of noncash investing activities from acquisitions:
|
|
|
|
||||
Investment securities available for sale
|
$
|
78.7
|
|
|
$
|
3.1
|
|
Loans held for sale
|
0.5
|
|
|
—
|
|
||
Loans
|
416.6
|
|
|
713.1
|
|
||
Premises and equipment
|
23.6
|
|
|
14.0
|
|
||
Goodwill
|
76.3
|
|
|
100.8
|
|
||
Core deposit intangible
|
16.6
|
|
|
15.7
|
|
||
Company-owned life insurance
|
15.2
|
|
|
9.5
|
|
||
Interest receivable
|
2.2
|
|
|
3.6
|
|
||
Other real estate owned
|
2.4
|
|
|
0.6
|
|
||
Other assets
|
6.5
|
|
|
6.5
|
|
||
Total noncash assets acquired
|
638.6
|
|
|
866.9
|
|
||
|
|
|
|
||||
Liabilities assumed:
|
|
|
|
||||
Deposits
|
$
|
706.7
|
|
|
$
|
696.3
|
|
Securities sold under repurchase agreements
|
30.4
|
|
|
—
|
|
||
Accounts payable and accrued expenses
|
19.4
|
|
|
7.7
|
|
||
Long-term debt
|
—
|
|
|
7.0
|
|
||
Other borrowed funds
|
4.1
|
|
|
6.0
|
|
||
Trust preferred securities
|
—
|
|
|
4.4
|
|
||
Deferred tax liability
|
(0.4
|
)
|
|
0.4
|
|
||
Total liabilities assumed
|
760.2
|
|
|
721.8
|
|
(1)
|
Basis of Presentation
|
(2)
|
Acquisitions
|
|
As Recorded
|
Fair Value
|
|
As Recorded
|
||||||
As of April 8, 2019
|
by IIBK
|
Adjustments
|
|
by the Company
|
||||||
|
|
|
|
|
||||||
Assets acquired:
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
270.7
|
|
$
|
—
|
|
|
$
|
270.7
|
|
Investment securities
|
62.7
|
|
0.5
|
|
(1)
|
63.2
|
|
|||
Loans held for investment
|
347.6
|
|
(9.8
|
)
|
(2)
|
337.8
|
|
|||
Mortgage loans held for sale
|
0.5
|
|
—
|
|
|
0.5
|
|
|||
Allowance for loan loss
|
(6.3
|
)
|
6.3
|
|
(3)
|
—
|
|
|||
Premises and equipment
|
16.5
|
|
7.0
|
|
(4)
|
23.5
|
|
|||
Other real estate owned (“OREO”)
|
0.4
|
|
2.0
|
|
(5)
|
2.4
|
|
|||
Company owned life insurance
|
15.2
|
|
—
|
|
|
15.2
|
|
|||
Core deposit intangible assets
|
—
|
|
13.6
|
|
(6)
|
13.6
|
|
|||
Deferred tax assets, net
|
3.2
|
|
(3.2
|
)
|
(7)
|
—
|
|
|||
Other assets
|
8.6
|
|
(0.8
|
)
|
(8)
|
7.8
|
|
|||
Total assets acquired
|
719.1
|
|
15.6
|
|
|
734.7
|
|
|||
|
|
|
|
|
||||||
Liabilities assumed:
|
|
|
|
|
||||||
Deposits
|
596.5
|
|
0.1
|
|
(9)
|
596.6
|
|
|||
Accounts payable and accrued expense
|
15.2
|
|
5.2
|
|
(10)
|
20.4
|
|
|||
Other borrowed funds
|
4.0
|
|
0.1
|
|
(11)
|
4.1
|
|
|||
Securities sold under repurchase agreements
|
30.4
|
|
—
|
|
|
30.4
|
|
|||
Total liabilities assumed
|
646.1
|
|
5.4
|
|
|
651.5
|
|
|||
|
|
|
|
|
||||||
Net assets acquired
|
$
|
73.0
|
|
$
|
10.2
|
|
|
$
|
83.2
|
|
|
|
|
|
|
||||||
Consideration paid:
|
|
|
|
|
||||||
Class A common stock
|
|
|
|
$
|
157.3
|
|
||||
Total consideration paid
|
|
|
|
$
|
157.3
|
|
||||
|
|
|
|
|
||||||
Goodwill
|
|
|
|
$
|
74.1
|
|
||||
|
|
|
|
|
Adjustments to the fair value marks for premises and equipment, deferred tax assets, accounts payable and accrued expenses were made since the prior quarter, none of which were material. The adjustments had no impact on 2019 earnings and a net decrease to goodwill of $0.6 million from the second quarter reported balances. Explanation of fair value adjustments and the removal of previously recorded fair value marks recorded by IIBK:
|
|
(1)
|
Write up of the book value of investments to their estimated fair values on the date of acquisition based upon quotes obtained from an independent third party pricing service.
|
(2)
|
Write down of the book value of loans to their estimated fair values. The fair value of the loans was estimated using cash flow projections based on the remaining maturity and repricing terms, adjusted for estimated future credit losses and prepayments and discounted to present value using a risk-adjusted market rate for similar loans. The fair value of collateral dependent loans acquired with deteriorated credit quality was estimated based on the Company’s analysis of the fair value of each loan’s underlying collateral, discounted using market-derived rates of return with consideration given to the period of time and costs associated with foreclosure and disposition of the collateral.
|
(3)
|
Adjustment to remove the IIBK allowance for loan losses at acquisition date, as the credit risk is included in the fair value adjustment for loans receivable described in (2) above.
|
(4)
|
Write up of the book value of premises and equipment to their estimated fair values on the date of acquisition based upon broker’s opinion of value.
|
(5)
|
Adjustment to the book value of other real estate owned to their estimated fair values on the date of acquisition based on appraisal value.
|
(6)
|
Adjustment represents the value of the core deposit base assumed in the acquisition based upon valuation from an independent accounting and advisory firm.
|
(7)
|
Adjustment consists of the write-off of pre-existing deferred tax assets and purchase accounting adjustments as a result of the acquisition.
|
(8)
|
Adjustment consists of reductions to the fair value of other items.
|
(9)
|
Increase in book value of time deposits to their estimated fair values based upon interest rates of similar time deposits with similar terms on the date of acquisition based upon valuation from an independent accounting and advisory firm.
|
(10)
|
Adjustment to the liability for the nonqualified retirement plan.
|
(11)
|
Adjustment of the book value of debt to the estimated fair values on the date of acquisition based upon interest rates in the market.
|
Contractually required principal and interest payments
|
$
|
24.1
|
|
Contractual cash flows not expected to be collected (“non-accretable discount”)
|
3.9
|
|
|
Cash flows expected to be collected
|
20.2
|
|
|
Interest component of cash flows expected to be collected (“accretable discount”)
|
3.4
|
|
|
Fair value of acquired credit-impaired loans
|
$
|
16.8
|
|
Contractually required principal and interest payments
|
$
|
398.7
|
|
Contractual cash flows not expected to be collected
|
15.2
|
|
|
Fair value at acquisition
|
$
|
321.5
|
|
|
As Recorded
|
Fair Value
|
|
As Recorded
|
||||||
As of August 16, 2018
|
by Northwest
|
Adjustments
|
|
by the Company
|
||||||
|
|
|
|
|
||||||
Assets acquired:
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
31.2
|
|
$
|
—
|
|
|
$
|
31.2
|
|
Investment securities
|
3.1
|
|
—
|
|
|
3.1
|
|
|||
Loans held for investment
|
727.9
|
|
(14.8
|
)
|
(1)
|
713.1
|
|
|||
Allowance for loan loss
|
(8.0
|
)
|
8.0
|
|
(2)
|
—
|
|
|||
Premises and equipment
|
14.5
|
|
—
|
|
|
14.5
|
|
|||
Other real estate owned (“OREO”)
|
0.3
|
|
0.3
|
|
|
0.6
|
|
|||
Core deposit intangible assets
|
2.4
|
|
13.3
|
|
(3)
|
15.7
|
|
|||
Other assets
|
29.3
|
|
(10.0
|
)
|
(4)
|
19.3
|
|
|||
Total assets acquired
|
800.7
|
|
(3.2
|
)
|
|
797.5
|
|
|||
|
|
|
|
|
||||||
Liabilities assumed:
|
|
|
|
|
||||||
Deposits
|
696.1
|
|
0.2
|
|
(5)
|
696.3
|
|
|||
Accounts payable and accrued expense
|
8.1
|
|
(0.4
|
)
|
(6)
|
7.7
|
|
|||
Long term debt
|
13.0
|
|
0.1
|
|
|
13.1
|
|
|||
Trust preferred securities
|
5.2
|
|
(0.8
|
)
|
(7)
|
4.4
|
|
|||
Deferred tax liability, net
|
(1.2
|
)
|
1.6
|
|
(8)
|
0.4
|
|
|||
Total liabilities assumed
|
721.2
|
|
0.7
|
|
|
721.9
|
|
|||
|
|
|
|
|
||||||
Net assets acquired
|
$
|
79.5
|
|
$
|
(3.9
|
)
|
|
$
|
75.6
|
|
|
|
|
|
|
||||||
Consideration paid:
|
|
|
|
|
||||||
Cash
|
|
|
|
$
|
3.0
|
|
||||
Class A common stock
|
|
|
|
173.3
|
|
|||||
Total consideration paid
|
|
|
|
176.3
|
|
|||||
|
|
|
|
|
||||||
Goodwill
|
|
|
|
$
|
100.7
|
|
||||
|
|
|
|
|
Explanation of fair value adjustments and the removal of previously recorded fair value marks recorded by Northwest:
|
|
(1)
|
Write down of the book value of loans to their estimated fair values. The fair value of the loans was estimated using cash flow projections based on the remaining maturity and repricing terms, adjusted for estimated future credit losses and prepayments and discounted to present value using a risk-adjusted market rate for similar loans. The fair value of collateral dependent loans acquired with deteriorated credit quality was estimated based on the Company’s analysis of the fair value of each loan’s underlying collateral, discounted using market-derived rates of return with consideration given to the period of time and costs associated with foreclosure and disposition of the collateral.
|
(2)
|
Adjustment to remove the Northwest allowance for loan losses at acquisition date, as the credit risk is included in the fair value adjustment for loans receivable described in (1) above.
|
(3)
|
Adjustment represents the value of the core deposit base assumed in the acquisition based upon valuation from an independent accounting and advisory firm.
|
(4)
|
Adjustment consists of reductions to the fair value of other items, including the removal of Northwest previously recorded goodwill.
|
(5)
|
Increase in book value of time deposits to their estimated fair values based upon interest rates of similar time deposits with similar terms on the date of acquisition based upon valuation from an independent accounting and advisory firm.
|
(6)
|
Decrease due to the write-off of off balance sheet reserves.
|
(7)
|
Write down of the book value of debt to the estimated fair values on the date of acquisition based upon favorable interest rates in the market.
|
(8)
|
Adjustment consists of the write-off of pre-existing deferred tax assets and purchase accounting adjustments as a result of the acquisition.
|
Contractually required principal and interest payments
|
$
|
27.5
|
|
Contractual cash flows not expected to be collected (“non-accretable discount”)
|
4.4
|
|
|
Cash flows expected to be collected
|
23.1
|
|
|
Interest component of cash flows expected to be collected (“accretable discount”)
|
3.2
|
|
|
Fair value of acquired credit-impaired loans
|
$
|
19.9
|
|
Contractually required principal and interest payments
|
$
|
894.8
|
|
Contractual cash flows not expected to be collected
|
26.1
|
|
|
Fair value at acquisition
|
$
|
693.2
|
|
|
Three Months Ended September 30, 2019
|
|
Three Months Ended September 30, 2018
|
|
Nine Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2018
|
||||||||
Legal and Professional Fees
|
$
|
0.1
|
|
|
$
|
2.4
|
|
|
$
|
0.8
|
|
|
$
|
3.0
|
|
Employee Expenses
|
1.4
|
|
|
—
|
|
|
8.2
|
|
|
0.1
|
|
||||
Technology Conversion and Contract Termination
|
1.5
|
|
|
0.5
|
|
|
8.7
|
|
|
2.0
|
|
||||
Other
|
0.8
|
|
|
0.2
|
|
|
1.9
|
|
|
0.3
|
|
||||
Total Acquisition Related Expenses
|
$
|
3.8
|
|
|
$
|
3.1
|
|
|
$
|
19.6
|
|
|
$
|
5.4
|
|
(3)
|
Goodwill and Core Deposit Intangibles
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
Net carrying value at beginning of the period
|
|
$
|
546.7
|
|
|
$
|
444.7
|
|
Additions to provisional goodwill from acquisitions
|
|
75.9
|
|
|
102.0
|
|
||
Net carrying value at end of period
|
|
$
|
622.6
|
|
|
$
|
546.7
|
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
Gross CDI, at beginning of the period
|
|
$
|
89.7
|
|
|
$
|
74.0
|
|
Established through acquisitions or provisional adjustments
|
|
16.6
|
|
|
15.7
|
|
||
Reductions due to sale of accounts
|
|
(0.3
|
)
|
|
—
|
|
||
Accumulated amortization
|
|
(41.0
|
)
|
|
(32.8
|
)
|
||
Net CDI, end of period
|
|
$
|
65.0
|
|
|
$
|
56.9
|
|
Years Ending December 31,
|
|
|
|
||
2019 remaining
|
|
|
$
|
2.9
|
|
2020
|
|
|
10.9
|
|
|
2021
|
|
|
9.9
|
|
|
2022
|
|
|
9.0
|
|
|
2023
|
|
|
8.2
|
|
|
Thereafter
|
|
|
24.1
|
|
|
Total
|
|
|
$
|
65.0
|
|
September 30, 2019
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
||||||||
Available-for-Sale:
|
|
|
|
|
||||||||
U.S. Treasury notes
|
$
|
7.0
|
|
$
|
—
|
|
$
|
—
|
|
$
|
7.0
|
|
State, county and municipal securities
|
77.4
|
|
1.0
|
|
—
|
|
78.4
|
|
||||
Obligations of U.S. government agencies
|
427.2
|
|
0.3
|
|
(0.8
|
)
|
426.7
|
|
||||
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations
|
2,046.6
|
|
21.1
|
|
(4.5
|
)
|
2,063.2
|
|
||||
Private mortgage-backed securities
|
54.4
|
|
0.1
|
|
(0.4
|
)
|
54.1
|
|
||||
Corporate securities
|
96.0
|
|
0.7
|
|
—
|
|
96.7
|
|
||||
Other investments
|
6.1
|
|
—
|
|
—
|
|
6.1
|
|
||||
Total
|
$
|
2,714.7
|
|
$
|
23.2
|
|
$
|
(5.7
|
)
|
$
|
2,732.2
|
|
September 30, 2019
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
||||||||
Held-to-Maturity:
|
|
|
|
|
||||||||
State, county and municipal securities
|
$
|
59.7
|
|
$
|
2.3
|
|
$
|
—
|
|
$
|
62.0
|
|
Obligations of U.S. government agencies
|
19.9
|
|
—
|
|
—
|
|
19.9
|
|
||||
U.S agency residential mortgage-backed securities & collateralized mortgage obligations
|
1.2
|
|
—
|
|
—
|
|
1.2
|
|
||||
Corporate securities
|
14.0
|
|
—
|
|
—
|
|
14.0
|
|
||||
Other investments
|
0.1
|
|
—
|
|
—
|
|
0.1
|
|
||||
Total
|
$
|
94.9
|
|
$
|
2.3
|
|
$
|
—
|
|
$
|
97.2
|
|
December 31, 2018
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
||||||||
Available-for-Sale:
|
|
|
|
|
||||||||
U.S. Treasury notes
|
$
|
2.6
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2.6
|
|
Obligations of U.S. government agencies
|
569.3
|
|
0.1
|
|
(10.2
|
)
|
559.2
|
|
||||
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations
|
1,566.4
|
|
2.5
|
|
(24.1
|
)
|
1,544.8
|
|
||||
Private mortgage-backed securities
|
72.0
|
|
—
|
|
(1.8
|
)
|
70.2
|
|
||||
Corporate securities
|
92.9
|
|
—
|
|
(1.0
|
)
|
91.9
|
|
||||
Other investments
|
2.0
|
|
—
|
|
—
|
|
2.0
|
|
||||
Total
|
$
|
2,305.2
|
|
$
|
2.6
|
|
$
|
(37.1
|
)
|
$
|
2,270.7
|
|
December 31, 2018
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
||||||||
Held-to-Maturity:
|
|
|
|
|
||||||||
State, county and municipal securities
|
$
|
150.9
|
|
$
|
1.8
|
|
$
|
(0.9
|
)
|
$
|
151.8
|
|
Obligations of U.S. government agencies
|
19.8
|
|
—
|
|
(0.3
|
)
|
19.5
|
|
||||
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations
|
189.7
|
|
0.3
|
|
(6.5
|
)
|
183.5
|
|
||||
Corporate securities
|
46.3
|
|
0.1
|
|
(0.6
|
)
|
45.8
|
|
||||
Other investments
|
0.1
|
|
—
|
|
—
|
|
0.1
|
|
||||
Total
|
$
|
406.8
|
|
$
|
2.2
|
|
$
|
(8.3
|
)
|
$
|
400.7
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||
September 30, 2019
|
Fair
Value
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
Gross
Unrealized
Losses
|
||||||||||||
Available-for-Sale:
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of U.S. government agencies
|
$
|
136.1
|
|
$
|
(0.5
|
)
|
|
$
|
85.7
|
|
$
|
(0.3
|
)
|
|
$
|
221.8
|
|
$
|
(0.8
|
)
|
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations
|
452.7
|
|
(3.3
|
)
|
|
187.0
|
|
(1.2
|
)
|
|
639.7
|
|
(4.5
|
)
|
||||||
Private mortgage-backed securities
|
—
|
|
—
|
|
|
35.4
|
|
(0.4
|
)
|
|
35.4
|
|
(0.4
|
)
|
||||||
Total
|
$
|
588.8
|
|
$
|
(3.8
|
)
|
|
$
|
308.1
|
|
$
|
(1.9
|
)
|
|
$
|
896.9
|
|
$
|
(5.7
|
)
|
|
|
|
|
|
|
|
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||
December 31, 2018
|
Fair
Value
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
Gross
Unrealized
Losses
|
||||||||||||
Available-for-Sale:
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of U.S. government agencies
|
$
|
363.1
|
|
$
|
(7.9
|
)
|
|
$
|
154.5
|
|
$
|
(2.3
|
)
|
|
$
|
517.6
|
|
$
|
(10.2
|
)
|
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations
|
735.2
|
|
(14.5
|
)
|
|
503.7
|
|
(9.6
|
)
|
|
1,238.9
|
|
(24.1
|
)
|
||||||
Private mortgage-backed securities
|
—
|
|
—
|
|
|
69.4
|
|
(1.8
|
)
|
|
69.4
|
|
(1.8
|
)
|
||||||
Corporate securities
|
24.9
|
|
(0.2
|
)
|
|
51.4
|
|
(0.8
|
)
|
|
76.3
|
|
(1.0
|
)
|
||||||
Total
|
$
|
1,123.2
|
|
$
|
(22.6
|
)
|
|
$
|
779.0
|
|
$
|
(14.5
|
)
|
|
$
|
1,902.2
|
|
$
|
(37.1
|
)
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||
December 31, 2018
|
Fair
Value |
Gross
Unrealized
Losses
|
|
Fair
Value
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
Gross
Unrealized
Losses
|
||||||||||||
Held-to-Maturity:
|
|
|
|
|
|
|
|
|
||||||||||||
State, county and municipal securities
|
$
|
25.9
|
|
$
|
(0.3
|
)
|
|
$
|
57.1
|
|
$
|
(0.6
|
)
|
|
$
|
83.0
|
|
$
|
(0.9
|
)
|
Obligations of U.S. government agencies
|
19.5
|
|
(0.3
|
)
|
|
—
|
|
—
|
|
|
19.5
|
|
(0.3
|
)
|
||||||
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations
|
45.0
|
|
(2.2
|
)
|
|
120.2
|
|
(4.3
|
)
|
|
165.2
|
|
(6.5
|
)
|
||||||
Corporate securities
|
—
|
|
—
|
|
|
39.6
|
|
(0.6
|
)
|
|
39.6
|
|
(0.6
|
)
|
||||||
Total
|
$
|
90.4
|
|
$
|
(2.8
|
)
|
|
$
|
216.9
|
|
$
|
(5.5
|
)
|
|
$
|
307.3
|
|
$
|
(8.3
|
)
|
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||
September 30, 2019
|
Amortized
Cost
|
Estimated
Fair Value
|
|
Amortized
Cost
|
Estimated
Fair Value
|
||||||||
Within one year
|
$
|
621.4
|
|
$
|
624.9
|
|
|
$
|
38.3
|
|
$
|
38.3
|
|
After one year but within five years
|
1,454.9
|
|
1,464.0
|
|
|
31.4
|
|
31.8
|
|
||||
After five years but within ten years
|
236.8
|
|
238.6
|
|
|
21.9
|
|
23.7
|
|
||||
After ten years
|
401.6
|
|
404.7
|
|
|
3.3
|
|
3.4
|
|
||||
Total
|
$
|
2,714.7
|
|
$
|
2,732.2
|
|
|
$
|
94.9
|
|
$
|
97.2
|
|
(5)
|
Loans
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
Real estate loans:
|
|
|
|
||||
Commercial
|
$
|
3,468.2
|
|
|
$
|
3,235.4
|
|
Construction:
|
|
|
|
||||
Land acquisition & development
|
309.6
|
|
|
321.6
|
|
||
Residential
|
261.8
|
|
|
242.8
|
|
||
Commercial
|
386.7
|
|
|
274.3
|
|
||
Total construction loans
|
958.1
|
|
|
838.7
|
|
||
Residential
|
1,556.3
|
|
|
1,542.0
|
|
||
Agricultural
|
226.5
|
|
|
217.4
|
|
||
Total real estate loans
|
6,209.1
|
|
|
5,833.5
|
|
||
Consumer:
|
|
|
|
||||
Indirect consumer
|
797.8
|
|
|
787.8
|
|
||
Other consumer
|
188.8
|
|
|
200.6
|
|
||
Credit card
|
80.3
|
|
|
81.8
|
|
||
Total consumer loans
|
1,066.9
|
|
|
1,070.2
|
|
||
Commercial
|
1,422.6
|
|
|
1,310.3
|
|
||
Agricultural
|
292.7
|
|
|
254.8
|
|
||
Other, including overdrafts
|
1.3
|
|
|
1.6
|
|
||
Loans held for investment
|
8,992.6
|
|
|
8,470.4
|
|
||
Mortgage loans held for sale
|
108.9
|
|
|
33.3
|
|
||
Total loans
|
$
|
9,101.5
|
|
|
$
|
8,503.7
|
|
|
|
|
|
Total Loans
|
|
|
|
||||||||||||||
|
30 - 59
|
60 - 89
|
> 90
|
30 or More
|
|
|
|
||||||||||||||
|
Days
|
Days
|
Days
|
Days
|
Current
|
Non-accrual
|
Total
|
||||||||||||||
As of September 30, 2019
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Loans
|
Loans
|
Loans
|
||||||||||||||
Real estate
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
$
|
5.0
|
|
$
|
4.6
|
|
$
|
0.7
|
|
$
|
10.3
|
|
$
|
3,444.3
|
|
$
|
13.6
|
|
$
|
3,468.2
|
|
Construction:
|
|
|
|
|
|
|
|
||||||||||||||
Land acquisition & development
|
1.4
|
|
0.1
|
|
0.7
|
|
2.2
|
|
307.0
|
|
0.4
|
|
309.6
|
|
|||||||
Residential
|
4.1
|
|
—
|
|
0.8
|
|
4.9
|
|
256.5
|
|
0.4
|
|
261.8
|
|
|||||||
Commercial
|
1.5
|
|
—
|
|
—
|
|
1.5
|
|
384.7
|
|
0.5
|
|
386.7
|
|
|||||||
Total construction loans
|
7.0
|
|
0.1
|
|
1.5
|
|
8.6
|
|
948.2
|
|
1.3
|
|
958.1
|
|
|||||||
Residential
|
2.1
|
|
1.3
|
|
0.9
|
|
4.3
|
|
1,548.4
|
|
3.6
|
|
1,556.3
|
|
|||||||
Agricultural
|
—
|
|
—
|
|
0.1
|
|
0.1
|
|
221.3
|
|
5.1
|
|
226.5
|
|
|||||||
Total real estate loans
|
14.1
|
|
6.0
|
|
3.2
|
|
23.3
|
|
6,162.2
|
|
23.6
|
|
6,209.1
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
||||||||||||||
Indirect consumer
|
7.1
|
|
2.0
|
|
0.6
|
|
9.7
|
|
786.0
|
|
2.1
|
|
797.8
|
|
|||||||
Other consumer
|
1.1
|
|
0.6
|
|
0.3
|
|
2.0
|
|
186.3
|
|
0.5
|
|
188.8
|
|
|||||||
Credit card
|
0.9
|
|
0.4
|
|
0.6
|
|
1.9
|
|
78.4
|
|
—
|
|
80.3
|
|
|||||||
Total consumer loans
|
9.1
|
|
3.0
|
|
1.5
|
|
13.6
|
|
1,050.7
|
|
2.6
|
|
1,066.9
|
|
|||||||
Commercial
|
4.3
|
|
2.9
|
|
2.1
|
|
9.3
|
|
1,392.3
|
|
21.0
|
|
1,422.6
|
|
|||||||
Agricultural
|
0.6
|
|
0.1
|
|
0.2
|
|
0.9
|
|
288.9
|
|
2.9
|
|
292.7
|
|
|||||||
Other, including overdrafts
|
—
|
|
—
|
|
—
|
|
—
|
|
1.3
|
|
—
|
|
1.3
|
|
|||||||
Loans held for investment
|
28.1
|
|
12.0
|
|
7.0
|
|
47.1
|
|
8,895.4
|
|
50.1
|
|
8,992.6
|
|
|||||||
Mortgage loans originated for sale
|
—
|
|
—
|
|
—
|
|
—
|
|
108.9
|
|
—
|
|
108.9
|
|
|||||||
Total loans
|
$
|
28.1
|
|
$
|
12.0
|
|
$
|
7.0
|
|
$
|
47.1
|
|
$
|
9,004.3
|
|
$
|
50.1
|
|
$
|
9,101.5
|
|
|
|
|
|
Total Loans
|
|
|
|
||||||||||||||
|
30 - 59
|
60 - 89
|
> 90
|
30 or More
|
|
|
|
||||||||||||||
|
Days
|
Days
|
Days
|
Days
|
Current
|
Non-accrual
|
Total
|
||||||||||||||
As of December 31, 2018
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Loans
|
Loans
|
Loans
|
||||||||||||||
Real estate
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
$
|
10.4
|
|
$
|
1.0
|
|
$
|
0.8
|
|
$
|
12.2
|
|
$
|
3,214.0
|
|
$
|
9.2
|
|
$
|
3,235.4
|
|
Construction:
|
|
|
|
|
|
|
|
||||||||||||||
Land acquisition & development
|
1.6
|
|
0.1
|
|
0.2
|
|
1.9
|
|
316.0
|
|
3.7
|
|
321.6
|
|
|||||||
Residential
|
1.0
|
|
0.4
|
|
—
|
|
1.4
|
|
240.4
|
|
1.0
|
|
242.8
|
|
|||||||
Commercial
|
0.4
|
|
—
|
|
—
|
|
0.4
|
|
273.7
|
|
0.2
|
|
274.3
|
|
|||||||
Total construction loans
|
3.0
|
|
0.5
|
|
0.2
|
|
3.7
|
|
830.1
|
|
4.9
|
|
838.7
|
|
|||||||
Residential
|
8.8
|
|
1.1
|
|
0.2
|
|
10.1
|
|
1,525.3
|
|
6.6
|
|
1,542.0
|
|
|||||||
Agricultural
|
2.2
|
|
—
|
|
—
|
|
2.2
|
|
202.6
|
|
12.6
|
|
217.4
|
|
|||||||
Total real estate loans
|
24.4
|
|
2.6
|
|
1.2
|
|
28.2
|
|
5,772.0
|
|
33.3
|
|
5,833.5
|
|
|||||||
Consumer:
|
|
|
|
|
|
|
|
||||||||||||||
Indirect consumer
|
6.8
|
|
2.1
|
|
0.4
|
|
9.3
|
|
776.8
|
|
1.7
|
|
787.8
|
|
|||||||
Other consumer
|
1.4
|
|
0.5
|
|
0.1
|
|
2.0
|
|
198.1
|
|
0.5
|
|
200.6
|
|
|||||||
Credit card
|
0.9
|
|
0.4
|
|
0.8
|
|
2.1
|
|
79.7
|
|
—
|
|
81.8
|
|
|||||||
Total consumer loans
|
9.1
|
|
3.0
|
|
1.3
|
|
13.4
|
|
1,054.6
|
|
2.2
|
|
1,070.2
|
|
|||||||
Commercial
|
8.3
|
|
1.2
|
|
1.3
|
|
10.8
|
|
1,283.7
|
|
15.8
|
|
1,310.3
|
|
|||||||
Agricultural
|
2.1
|
|
0.3
|
|
—
|
|
2.4
|
|
249.4
|
|
3.0
|
|
254.8
|
|
|||||||
Other, including overdrafts
|
—
|
|
—
|
|
—
|
|
—
|
|
1.6
|
|
—
|
|
1.6
|
|
|||||||
Loans held for investment
|
43.9
|
|
7.1
|
|
3.8
|
|
54.8
|
|
8,361.3
|
|
54.3
|
|
8,470.4
|
|
|||||||
Mortgage loans originated for sale
|
—
|
|
—
|
|
—
|
|
—
|
|
33.3
|
|
—
|
|
33.3
|
|
|||||||
Total loans
|
$
|
43.9
|
|
$
|
7.1
|
|
$
|
3.8
|
|
$
|
54.8
|
|
$
|
8,394.6
|
|
$
|
54.3
|
|
$
|
8,503.7
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Outstanding balance
|
$
|
52.8
|
|
|
$
|
43.4
|
|
Carrying value
|
|
|
|
||||
Loans on accrual status
|
39.9
|
|
|
30.2
|
|
||
Total carrying value
|
$
|
39.9
|
|
|
$
|
30.2
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Beginning balance
|
$
|
10.8
|
|
$
|
6.5
|
|
|
$
|
8.9
|
|
$
|
7.3
|
|
Acquisitions
|
—
|
|
3.2
|
|
|
3.4
|
|
3.2
|
|
||||
Additions
|
—
|
|
—
|
|
|
—
|
|
0.4
|
|
||||
Accretion income
|
(0.8
|
)
|
(0.7
|
)
|
|
(2.5
|
)
|
(2.4
|
)
|
||||
Reductions due to exit events
|
(0.2
|
)
|
(0.1
|
)
|
|
(1.3
|
)
|
(0.6
|
)
|
||||
Reclassifications from non-accretable differences
|
0.2
|
|
0.6
|
|
|
1.5
|
|
1.6
|
|
||||
Ending balance
|
$
|
10.0
|
|
$
|
9.5
|
|
|
$
|
10.0
|
|
$
|
9.5
|
|
As of September 30, 2019
|
Unpaid
Total
Principal
Balance
|
Recorded
Investment
With No
Allowance
|
Recorded
Investment
With
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
||||||||||
Real estate:
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
28.4
|
|
$
|
13.2
|
|
$
|
9.7
|
|
$
|
22.9
|
|
$
|
0.7
|
|
Construction:
|
|
|
|
|
|
||||||||||
Land acquisition & development
|
6.8
|
|
0.4
|
|
0.2
|
|
0.6
|
|
—
|
|
|||||
Residential
|
0.6
|
|
0.4
|
|
—
|
|
0.4
|
|
—
|
|
|||||
Commercial
|
1.0
|
|
0.5
|
|
0.1
|
|
0.6
|
|
—
|
|
|||||
Total construction loans
|
8.4
|
|
1.3
|
|
0.3
|
|
1.6
|
|
—
|
|
|||||
Residential
|
6.3
|
|
3.1
|
|
2.0
|
|
5.1
|
|
0.2
|
|
|||||
Agricultural
|
7.6
|
|
5.1
|
|
2.1
|
|
7.2
|
|
0.1
|
|
|||||
Total real estate loans
|
50.7
|
|
22.7
|
|
14.1
|
|
36.8
|
|
1.0
|
|
|||||
Commercial
|
30.9
|
|
12.6
|
|
12.4
|
|
25.0
|
|
2.9
|
|
|||||
Agricultural
|
5.8
|
|
2.8
|
|
2.5
|
|
5.3
|
|
0.2
|
|
|||||
Total
|
$
|
87.4
|
|
$
|
38.1
|
|
$
|
29.0
|
|
$
|
67.1
|
|
$
|
4.1
|
|
As of December 31, 2018
|
Unpaid
Total
Principal
Balance
|
Recorded
Investment
With No
Allowance
|
Recorded
Investment
With
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
||||||||||
Real estate:
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
22.2
|
|
$
|
8.6
|
|
$
|
7.7
|
|
$
|
16.3
|
|
$
|
0.7
|
|
Construction:
|
|
|
|
|
|
||||||||||
Land acquisition & development
|
10.0
|
|
0.4
|
|
3.5
|
|
3.9
|
|
0.2
|
|
|||||
Residential
|
1.1
|
|
0.6
|
|
0.4
|
|
1.0
|
|
0.1
|
|
|||||
Commercial
|
0.7
|
|
0.2
|
|
—
|
|
0.2
|
|
—
|
|
|||||
Total construction loans
|
11.8
|
|
1.2
|
|
3.9
|
|
5.1
|
|
0.3
|
|
|||||
Residential
|
8.8
|
|
5.7
|
|
2.0
|
|
7.7
|
|
0.3
|
|
|||||
Agricultural
|
12.9
|
|
12.5
|
|
0.2
|
|
12.7
|
|
—
|
|
|||||
Total real estate loans
|
55.7
|
|
28.0
|
|
13.8
|
|
41.8
|
|
1.3
|
|
|||||
Commercial
|
24.1
|
|
5.5
|
|
14.4
|
|
19.9
|
|
5.2
|
|
|||||
Agricultural
|
3.2
|
|
2.5
|
|
0.6
|
|
3.1
|
|
0.3
|
|
|||||
Total
|
$
|
83.0
|
|
$
|
36.0
|
|
$
|
28.8
|
|
$
|
64.8
|
|
$
|
6.8
|
|
|
Three Months Ended September 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
Average Recorded Investment
|
|
Income Recognized
|
|
Average Recorded Investment
|
|
Income Recognized
|
||||||||
Real estate
|
$
|
33.9
|
|
|
$
|
—
|
|
|
$
|
54.5
|
|
|
$
|
—
|
|
Commercial
|
22.1
|
|
|
—
|
|
|
20.7
|
|
|
—
|
|
||||
Agricultural
|
6.0
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
||||
Total
|
$
|
62.0
|
|
|
$
|
—
|
|
|
$
|
77.1
|
|
|
$
|
—
|
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
Average Recorded Investment
|
|
Income Recognized
|
|
Average Recorded Investment
|
|
Income Recognized
|
||||||||
Real estate
|
$
|
39.2
|
|
|
$
|
—
|
|
|
$
|
54.1
|
|
|
$
|
0.2
|
|
Commercial
|
22.5
|
|
|
0.1
|
|
|
22.0
|
|
|
0.1
|
|
||||
Agricultural
|
4.1
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
||||
Total
|
$
|
65.8
|
|
|
$
|
0.1
|
|
|
$
|
77.7
|
|
|
$
|
0.3
|
|
|
|
Number of Notes
|
|
Type of Concession
|
Principal Balance at Restructure Date
|
|||||||||||||
Nine Months Ended September 30, 2019
|
|
|
Interest only period
|
Extension of term or amortization schedule
|
Interest rate adjustment
|
Other (1)
|
||||||||||||
Commercial real estate
|
|
1
|
|
$
|
—
|
|
$
|
0.2
|
|
$
|
—
|
|
$
|
—
|
|
$
|
0.2
|
|
Total loans restructured during period
|
|
1
|
|
$
|
—
|
|
$
|
0.2
|
|
$
|
—
|
|
$
|
—
|
|
$
|
0.2
|
|
(1) Other includes concessions that reduce or defer payments for a specified period of time and/or concessions that do not fit into other designated categories.
|
|
|
|
|
|
|
|
|
As of September 30, 2019
|
Other Assets
Especially
Mentioned
|
Substandard
|
Doubtful
|
Total
Criticized
Loans
|
||||||||
Real estate:
|
|
|
|
|
||||||||
Commercial
|
$
|
90.0
|
|
$
|
96.5
|
|
$
|
1.5
|
|
$
|
188.0
|
|
Construction:
|
|
|
|
|
||||||||
Land acquisition & development
|
5.0
|
|
5.0
|
|
0.1
|
|
10.1
|
|
||||
Residential
|
0.9
|
|
1.4
|
|
0.4
|
|
2.7
|
|
||||
Commercial
|
2.3
|
|
1.5
|
|
—
|
|
3.8
|
|
||||
Total construction loans
|
8.2
|
|
7.9
|
|
0.5
|
|
16.6
|
|
||||
Residential
|
3.3
|
|
7.0
|
|
0.3
|
|
10.6
|
|
||||
Agricultural
|
15.5
|
|
25.3
|
|
—
|
|
40.8
|
|
||||
Total real estate loans
|
117.0
|
|
136.7
|
|
2.3
|
|
256.0
|
|
||||
Consumer:
|
|
|
|
|
||||||||
Indirect consumer
|
0.3
|
|
3.2
|
|
—
|
|
3.5
|
|
||||
Direct consumer
|
0.4
|
|
1.0
|
|
0.1
|
|
1.5
|
|
||||
Total consumer loans
|
0.7
|
|
4.2
|
|
0.1
|
|
5.0
|
|
||||
Commercial
|
40.2
|
|
62.5
|
|
9.9
|
|
112.6
|
|
||||
Agricultural
|
16.6
|
|
25.7
|
|
0.2
|
|
42.5
|
|
||||
Total
|
$
|
174.5
|
|
$
|
229.1
|
|
$
|
12.5
|
|
$
|
416.1
|
|
As of December 31, 2018
|
Other Assets
Especially
Mentioned
|
Substandard
|
Doubtful
|
Total
Criticized
Loans
|
||||||||
Real estate:
|
|
|
|
|
||||||||
Commercial
|
$
|
102.5
|
|
$
|
87.4
|
|
$
|
2.9
|
|
$
|
192.8
|
|
Construction:
|
|
|
|
|
||||||||
Land acquisition & development
|
5.0
|
|
7.0
|
|
3.3
|
|
15.3
|
|
||||
Residential
|
2.8
|
|
2.0
|
|
0.4
|
|
5.2
|
|
||||
Commercial
|
1.7
|
|
3.9
|
|
—
|
|
5.6
|
|
||||
Total construction loans
|
9.5
|
|
12.9
|
|
3.7
|
|
26.1
|
|
||||
Residential
|
3.0
|
|
10.8
|
|
0.7
|
|
14.5
|
|
||||
Agricultural
|
9.0
|
|
24.0
|
|
0.1
|
|
33.1
|
|
||||
Total real estate loans
|
124.0
|
|
135.1
|
|
7.4
|
|
266.5
|
|
||||
Consumer:
|
|
|
|
|
||||||||
Indirect consumer
|
0.7
|
|
2.1
|
|
0.1
|
|
2.9
|
|
||||
Direct consumer
|
0.3
|
|
0.8
|
|
0.1
|
|
1.2
|
|
||||
Total consumer loans
|
1.0
|
|
2.9
|
|
0.2
|
|
4.1
|
|
||||
Commercial
|
39.4
|
|
45.8
|
|
11.8
|
|
97.0
|
|
||||
Agricultural
|
14.4
|
|
17.8
|
|
1.5
|
|
33.7
|
|
||||
Total
|
$
|
178.8
|
|
$
|
201.6
|
|
$
|
20.9
|
|
$
|
401.3
|
|
(6)
|
Allowance for Loan Losses
|
Three Months Ended September 30, 2019
|
Real Estate
|
Consumer
|
Commercial
|
Agriculture
|
Other
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
27.7
|
|
$
|
9.1
|
|
$
|
35.7
|
|
$
|
1.7
|
|
$
|
—
|
|
$
|
74.2
|
|
Provision charged to operating expense
|
0.4
|
|
2.7
|
|
(0.4
|
)
|
(0.1
|
)
|
—
|
|
2.6
|
|
||||||
Less loans charged-off
|
(0.3
|
)
|
(2.8
|
)
|
(1.6
|
)
|
—
|
|
—
|
|
(4.7
|
)
|
||||||
Add back recoveries of loans previously
charged-off
|
0.8
|
|
0.8
|
|
1.3
|
|
—
|
|
—
|
|
2.9
|
|
||||||
Ending balance
|
$
|
28.6
|
|
$
|
9.8
|
|
$
|
35.0
|
|
$
|
1.6
|
|
$
|
—
|
|
$
|
75.0
|
|
|
|
|
|
|
|
|
||||||||||||
Nine Months Ended September 30, 2019
|
Real Estate
|
Consumer
|
Commercial
|
Agriculture
|
Other
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
31.0
|
|
$
|
8.7
|
|
$
|
31.3
|
|
$
|
2.0
|
|
$
|
—
|
|
$
|
73.0
|
|
Provision charged to operating expense
|
(1.3
|
)
|
7.1
|
|
4.3
|
|
—
|
|
—
|
|
10.1
|
|
||||||
Less loans charged-off
|
(3.3
|
)
|
(9.1
|
)
|
(3.5
|
)
|
(0.4
|
)
|
—
|
|
(16.3
|
)
|
||||||
Add back recoveries of loans previously
charged-off |
2.2
|
|
3.1
|
|
2.9
|
|
—
|
|
—
|
|
8.2
|
|
||||||
Ending balance
|
$
|
28.6
|
|
$
|
9.8
|
|
$
|
35.0
|
|
$
|
1.6
|
|
$
|
—
|
|
$
|
75.0
|
|
|
|
|
|
|
|
|
||||||||||||
As of September 30, 2019
|
Real Estate
|
Consumer
|
Commercial
|
Agriculture
|
Other
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
||||||||||||
Loans individually evaluated for impairment
|
$
|
1.0
|
|
$
|
—
|
|
$
|
2.9
|
|
$
|
0.2
|
|
$
|
—
|
|
$
|
4.1
|
|
Loans collectively evaluated for impairment
|
27.6
|
|
9.8
|
|
32.1
|
|
1.4
|
|
—
|
|
70.9
|
|
||||||
Allowance for loan losses
|
$
|
28.6
|
|
$
|
9.8
|
|
$
|
35.0
|
|
$
|
1.6
|
|
$
|
—
|
|
$
|
75.0
|
|
|
|
|
|
|
|
|
||||||||||||
As of September 30, 2019
|
Real Estate
|
Consumer
|
Commercial
|
Agriculture
|
Other
|
Total
|
||||||||||||
Loans held for investment:
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
36.8
|
|
$
|
—
|
|
$
|
25.0
|
|
$
|
5.3
|
|
$
|
—
|
|
$
|
67.1
|
|
Collectively evaluated for impairment
|
6,172.3
|
|
1,066.9
|
|
1,397.6
|
|
287.4
|
|
1.3
|
|
8,925.5
|
|
||||||
Total loans held for investment
|
$
|
6,209.1
|
|
$
|
1,066.9
|
|
$
|
1,422.6
|
|
$
|
292.7
|
|
$
|
1.3
|
|
$
|
8,992.6
|
|
Three Months Ended September 30, 2018
|
Real Estate
|
Consumer
|
Commercial
|
Agriculture
|
Other
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
34.0
|
|
$
|
7.8
|
|
$
|
30.5
|
|
$
|
1.8
|
|
$
|
—
|
|
$
|
74.1
|
|
Provision charged to operating expense
|
(0.9
|
)
|
2.4
|
|
0.5
|
|
—
|
|
—
|
|
2.0
|
|
||||||
Less loans charged-off
|
(0.7
|
)
|
(3.0
|
)
|
(1.1
|
)
|
—
|
|
—
|
|
(4.8
|
)
|
||||||
Add back recoveries of loans previously
charged-off
|
0.6
|
|
1.2
|
|
0.5
|
|
—
|
|
—
|
|
2.3
|
|
||||||
Ending balance
|
$
|
33.0
|
|
$
|
8.4
|
|
$
|
30.4
|
|
$
|
1.8
|
|
$
|
—
|
|
$
|
73.6
|
|
|
|
|
|
|
|
|
||||||||||||
Nine Months Ended September 30, 2018
|
Real Estate
|
Consumer
|
Commercial
|
Agriculture
|
Other
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
31.7
|
|
$
|
8.7
|
|
$
|
30.5
|
|
$
|
1.2
|
|
$
|
—
|
|
$
|
72.1
|
|
Provision charged to operating expense
|
1.5
|
|
4.6
|
|
0.5
|
|
0.4
|
|
—
|
|
7.0
|
|
||||||
Less loans charged-off
|
(2.8
|
)
|
(8.5
|
)
|
(3.7
|
)
|
—
|
|
—
|
|
(15.0
|
)
|
||||||
Add back recoveries of loans previously
charged-off
|
2.6
|
|
3.6
|
|
3.1
|
|
0.2
|
|
—
|
|
9.5
|
|
||||||
Ending balance
|
$
|
33.0
|
|
$
|
8.4
|
|
$
|
30.4
|
|
$
|
1.8
|
|
$
|
—
|
|
$
|
73.6
|
|
As of December 31, 2018
|
Real Estate
|
|
Consumer
|
|
Commercial
|
|
Agriculture
|
|
Other
|
Total
|
||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
||||||||||||
Loans individually evaluated for impairment
|
$
|
1.3
|
|
$
|
—
|
|
$
|
5.2
|
|
$
|
0.3
|
|
$
|
—
|
|
$
|
6.8
|
|
Loans collectively evaluated for impairment
|
29.7
|
|
8.7
|
|
26.1
|
|
1.7
|
|
—
|
|
66.2
|
|
||||||
Allowance for loan losses
|
$
|
31.0
|
|
$
|
8.7
|
|
$
|
31.3
|
|
$
|
2.0
|
|
$
|
—
|
|
$
|
73.0
|
|
|
|
|
|
|
|
|
||||||||||||
As of December 31, 2018
|
Real Estate
|
|
Consumer
|
|
Commercial
|
|
Agriculture
|
|
Other
|
|
Total
|
|
||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
$
|
41.8
|
|
$
|
—
|
|
$
|
19.9
|
|
$
|
3.1
|
|
$
|
—
|
|
$
|
64.8
|
|
Collectively evaluated for impairment
|
5,791.7
|
|
1,070.2
|
|
1,290.4
|
|
251.7
|
|
1.6
|
|
8,405.6
|
|
||||||
Total loans held for investment
|
$
|
5,833.5
|
|
$
|
1,070.2
|
|
$
|
1,310.3
|
|
$
|
254.8
|
|
$
|
1.6
|
|
$
|
8,470.4
|
|
(7)
|
Other Real Estate Owned
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Beginning balance
|
$
|
27.5
|
|
|
$
|
14.9
|
|
|
$
|
14.4
|
|
|
$
|
10.1
|
|
OREO acquired through acquisition
|
—
|
|
|
0.6
|
|
|
2.4
|
|
|
0.6
|
|
||||
Additions
|
0.7
|
|
|
3.2
|
|
|
14.0
|
|
|
10.6
|
|
||||
Valuation adjustments
|
(0.2
|
)
|
|
(0.1
|
)
|
|
(0.7
|
)
|
|
(0.1
|
)
|
||||
Dispositions
|
(10.2
|
)
|
|
(1.3
|
)
|
|
(12.3
|
)
|
|
(3.9
|
)
|
||||
Ending balance
|
$
|
17.8
|
|
|
$
|
17.3
|
|
|
$
|
17.8
|
|
|
$
|
17.3
|
|
(8)
|
Derivatives and Hedging Activities
|
|
September 30, 2019
|
||||||||||||||||||||||
|
Gross Amounts Recognized
|
|
Gross Amounts Offset in the Balance Sheet
|
|
Net Amounts in the Balance Sheet
|
|
Financial Instruments
|
|
Fair Value of Financial Collateral in the Balance Sheet
|
|
Net Amount
|
||||||||||||
Financial Assets
|
|||||||||||||||||||||||
Interest rate swap contracts
|
$
|
30.8
|
|
|
$
|
—
|
|
|
$
|
30.8
|
|
|
$
|
0.1
|
|
|
$
|
19.7
|
|
|
$
|
11.0
|
|
Mortgage related derivatives
|
2.2
|
|
|
—
|
|
|
2.2
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
||||||
Total derivatives
|
33.0
|
|
|
—
|
|
|
33.0
|
|
|
0.1
|
|
|
19.7
|
|
|
13.2
|
|
||||||
Total assets
|
$
|
33.0
|
|
|
$
|
—
|
|
|
$
|
33.0
|
|
|
$
|
0.1
|
|
|
$
|
19.7
|
|
|
$
|
13.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financial Liabilities
|
|||||||||||||||||||||||
Interest rate swap contracts
|
$
|
30.8
|
|
|
$
|
—
|
|
|
$
|
30.8
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
30.7
|
|
Mortgage related derivatives
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total derivatives
|
30.8
|
|
|
—
|
|
|
30.8
|
|
|
0.1
|
|
|
—
|
|
|
30.7
|
|
||||||
Repurchase agreements
|
636.9
|
|
|
—
|
|
|
636.9
|
|
|
—
|
|
|
636.9
|
|
|
—
|
|
||||||
Total liabilities
|
$
|
667.7
|
|
|
$
|
—
|
|
|
$
|
667.7
|
|
|
$
|
0.1
|
|
|
$
|
636.9
|
|
|
$
|
30.7
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Gross Amounts Recognized
|
|
Gross Amounts Offset in the Balance Sheet
|
|
Net Amounts in the Balance Sheet
|
|
Financial Instruments
|
|
Fair Value of Financial Collateral in the Balance Sheet
|
|
Net Amount
|
||||||||||||
Financial Assets
|
|||||||||||||||||||||||
Interest rate swap contracts
|
$
|
8.8
|
|
|
$
|
—
|
|
|
$
|
8.8
|
|
|
$
|
2.7
|
|
|
$
|
2.4
|
|
|
$
|
3.7
|
|
Mortgage related derivatives
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
||||||
Total derivatives
|
10.1
|
|
|
—
|
|
|
10.1
|
|
|
2.7
|
|
|
2.4
|
|
|
5.0
|
|
||||||
Total assets
|
$
|
10.1
|
|
|
$
|
—
|
|
|
$
|
10.1
|
|
|
$
|
2.7
|
|
|
$
|
2.4
|
|
|
$
|
5.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financial Liabilities
|
|||||||||||||||||||||||
Interest rate swap contracts
|
$
|
8.8
|
|
|
$
|
—
|
|
|
$
|
8.8
|
|
|
$
|
2.7
|
|
|
$
|
4.1
|
|
|
$
|
2.0
|
|
Mortgage related derivatives
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
||||||
Total derivatives
|
9.4
|
|
|
—
|
|
|
9.4
|
|
|
2.7
|
|
|
4.1
|
|
|
2.6
|
|
||||||
Repurchase agreements
|
712.4
|
|
|
—
|
|
|
712.4
|
|
|
—
|
|
|
712.4
|
|
|
—
|
|
||||||
Total liabilities
|
$
|
721.8
|
|
|
$
|
—
|
|
|
$
|
721.8
|
|
|
$
|
2.7
|
|
|
$
|
716.5
|
|
|
$
|
2.6
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Non-hedging interest rate derivatives:
|
|
|
|
|
|
||||||||
Amount of gain recognized in other non-interest income
|
$
|
—
|
|
$
|
0.1
|
|
|
$
|
—
|
|
$
|
0.4
|
|
Amount of net fee income recognized in other non-interest income
|
0.5
|
|
—
|
|
|
1.8
|
|
0.9
|
|
||||
Amount of net gains recognized in mortgage banking revenues
|
0.4
|
|
—
|
|
|
1.5
|
|
—
|
|
(9)
|
Capital Stock
|
(10)
|
Earnings per Common Share
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Net income
|
$
|
49.1
|
|
$
|
41.4
|
|
|
$
|
128.6
|
|
$
|
119.8
|
|
Weighted average common shares outstanding for basic earnings per share computation
|
64,832,324
|
|
58,254,575
|
|
|
63,232,575
|
|
56,951,029
|
|
||||
Dilutive effects of stock-based compensation
|
211,162
|
|
385,900
|
|
|
238,708
|
|
378,998
|
|
||||
Weighted average common shares outstanding for diluted earnings per common share computation
|
65,043,486
|
|
58,640,475
|
|
|
63,471,283
|
|
57,330,027
|
|
||||
|
|
|
|
|
|
||||||||
Basic earnings per common share
|
$
|
0.76
|
|
$
|
0.71
|
|
|
$
|
2.03
|
|
$
|
2.10
|
|
Diluted earnings per common share
|
$
|
0.76
|
|
$
|
0.71
|
|
|
$
|
2.03
|
|
$
|
2.09
|
|
|
|
|
|
|
|
||||||||
Anti-dilutive unvested time restricted stock
|
4,808
|
|
4,376
|
|
|
5,569
|
|
120,553
|
|
(11)
|
Regulatory Capital
|
|
Actual
|
|
Minimum Required for Capital Adequacy Purposes
|
|
For Capital Adequacy Purposes Plus Capital Conservation Buffer
|
|
Minimum to Be Well Capitalized Under Prompt Corrective Action Requirements(1)
|
||||||||||||||||
September 30, 2019
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
||||||||||||
Total risk-based capital:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
$
|
1,460.2
|
|
13.71
|
%
|
|
$
|
851.9
|
|
8.000
|
%
|
|
$
|
1,118.1
|
|
10.50
|
%
|
|
$
|
1,064.9
|
|
10.00
|
%
|
FIB
|
1,308.6
|
|
12.33
|
|
|
849.0
|
|
8.000
|
|
|
1,114.3
|
|
10.50
|
|
|
1,061.3
|
|
10.00
|
|
||||
Tier 1 risk-based capital:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
1,385.2
|
|
13.01
|
|
|
638.9
|
|
6.000
|
|
|
905.2
|
|
8.50
|
|
|
851.9
|
|
8.00
|
|
||||
FIB
|
1,233.7
|
|
11.62
|
|
|
636.8
|
|
6.000
|
|
|
902.1
|
|
8.50
|
|
|
849.0
|
|
8.00
|
|
||||
Common equity tier 1 risk-based capital:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
1,298.3
|
|
12.19
|
|
|
479.2
|
|
4.500
|
|
|
745.4
|
|
7.00
|
|
|
692.2
|
|
6.50
|
|
||||
FIB
|
1,233.7
|
|
11.62
|
|
|
477.6
|
|
4.500
|
|
|
742.9
|
|
7.00
|
|
|
689.8
|
|
6.50
|
|
||||
Leverage capital ratio:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
1,385.2
|
|
9.96
|
|
|
556.2
|
|
4.000
|
|
|
556.2
|
|
4.00
|
|
|
695.3
|
|
5.00
|
|
||||
FIB
|
1,233.7
|
|
8.96
|
|
|
550.5
|
|
4.000
|
|
|
550.5
|
|
4.00
|
|
|
688.1
|
|
5.00
|
|
|
Actual
|
|
Minimum Required for Capital Adequacy Purposes
|
|
For Capital Adequacy Purposes Plus Capital Conservation Buffer
|
|
Minimum to Be Well Capitalized Under Prompt Corrective Action Requirements(1)
|
||||||||||||||||
December 31, 2018
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
||||||||||||
Total risk-based capital:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
$
|
1,285.0
|
|
12.99
|
%
|
|
$
|
791.2
|
|
8.00
|
%
|
|
$
|
976.6
|
|
9.875
|
%
|
|
$
|
989.0
|
|
10.00
|
%
|
FIB
|
1,184.5
|
|
12.01
|
|
|
788.8
|
|
8.00
|
|
|
973.7
|
|
9.875
|
|
|
986.0
|
|
10.00
|
|
||||
Tier 1 risk-based capital:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
1,212.0
|
|
12.26
|
|
|
593.4
|
|
6.00
|
|
|
778.8
|
|
7.875
|
|
|
791.2
|
|
8.00
|
|
||||
FIB
|
1,111.6
|
|
11.27
|
|
|
591.6
|
|
6.00
|
|
|
776.5
|
|
7.875
|
|
|
788.8
|
|
8.00
|
|
||||
Common equity tier 1 risk-based capital:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
1,127.8
|
|
11.40
|
|
|
445.0
|
|
4.50
|
|
|
630.5
|
|
6.375
|
|
|
642.8
|
|
6.50
|
|
||||
FIB
|
1,111.6
|
|
11.27
|
|
|
443.7
|
|
4.50
|
|
|
628.6
|
|
6.375
|
|
|
640.9
|
|
6.50
|
|
||||
Leverage capital ratio:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
1,212.0
|
|
9.47
|
|
|
511.9
|
|
4.00
|
|
|
511.9
|
|
4.000
|
|
|
639.9
|
|
5.00
|
|
||||
FIB
|
1,111.6
|
|
8.97
|
|
|
495.9
|
|
4.00
|
|
|
495.9
|
|
4.000
|
|
|
619.8
|
|
5.00
|
|
(12)
|
Commitments and Contingencies
|
(13)
|
Financial Instruments with Off-Balance Sheet Risk
|
(14)
|
Other Comprehensive Income/Loss
|
|
Pre-tax
|
|
Tax Expense (Benefit)
|
|
Net of Tax
|
||||||||||||||||||
Three Months Ended September 30,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Investment securities available-for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in net unrealized gains during period
|
$
|
4.2
|
|
|
$
|
(6.3
|
)
|
|
$
|
1.0
|
|
|
$
|
(1.7
|
)
|
|
$
|
3.2
|
|
|
$
|
(4.6
|
)
|
Reclassification adjustment for net gains included in net income
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
||||||
Change in unamortized loss on available-for-sale securities transferred into held-to-maturity
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.4
|
|
||||||
Defined benefits post-retirement benefit plan:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in net actuarial (gain) loss
|
(0.2
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
||||||
Total other comprehensive income (loss)
|
$
|
3.9
|
|
|
$
|
(6.0
|
)
|
|
$
|
1.0
|
|
|
$
|
(1.6
|
)
|
|
$
|
2.9
|
|
|
$
|
(4.4
|
)
|
|
Pre-tax
|
|
Tax Expense (Benefit)
|
|
Net of Tax
|
||||||||||||||||||
Nine Months Ended September 30,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Investment securities available-for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in net unrealized gains during period
|
$
|
58.0
|
|
|
$
|
(33.9
|
)
|
|
$
|
15.0
|
|
|
$
|
(8.9
|
)
|
|
$
|
43.0
|
|
|
$
|
(25.0
|
)
|
Reclassification adjustment for net gains included in net income
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
||||||
Reclassification adjustment for securities transferred from held-to-maturity to available-for-sale
|
(6.0
|
)
|
|
—
|
|
|
(1.6
|
)
|
|
—
|
|
|
(4.4
|
)
|
|
—
|
|
||||||
Change in unamortized loss on available-for-sale securities transferred into held-to-maturity
|
—
|
|
|
1.5
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
1.1
|
|
||||||
Defined benefits post-retirement benefit plan:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in net actuarial (gain) loss
|
(0.5
|
)
|
|
(0.5
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
(0.5
|
)
|
|
(0.4
|
)
|
||||||
Total other comprehensive income (loss)
|
$
|
51.4
|
|
|
$
|
(32.9
|
)
|
|
$
|
13.4
|
|
|
$
|
(8.6
|
)
|
|
$
|
38.0
|
|
|
$
|
(24.3
|
)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Net unrealized gain (loss) on investment securities available-for-sale
|
$
|
12.9
|
|
|
$
|
(25.5
|
)
|
Net actuarial gain (loss) on defined benefit post-retirement benefit plans
|
0.5
|
|
|
0.9
|
|
||
Net accumulated other comprehensive gain (loss)
|
$
|
13.4
|
|
|
$
|
(24.6
|
)
|
(15)
|
Fair Value Measurements
|
•
|
Level 1 - Quoted prices in active markets for identical assets or liabilities
|
•
|
Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
|
•
|
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||
As of September 30, 2019
|
Balance
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||
Investment debt securities available-for-sale:
|
|
|
|
|
|
|
||||
U.S. Treasury Notes
|
$
|
7.0
|
|
$
|
—
|
$
|
7.0
|
|
$
|
—
|
State, county and municipal securities
|
78.4
|
|
|
—
|
78.4
|
|
|
—
|
||
Obligations of U.S. government agencies
|
426.7
|
|
|
—
|
426.7
|
|
|
—
|
||
U.S. agencies mortgage-backed securities & collateralized mortgage obligations
|
2,063.2
|
|
|
—
|
2,063.2
|
|
|
—
|
||
Private mortgage-backed securities
|
54.1
|
|
|
—
|
54.1
|
|
|
—
|
||
Corporate securities
|
96.7
|
|
|
—
|
96.7
|
|
|
—
|
||
Other investments
|
6.1
|
|
|
—
|
6.1
|
|
|
—
|
||
Loans held for sale
|
108.9
|
|
|
—
|
108.9
|
|
|
—
|
||
Derivative assets:
|
|
|
|
|
|
|
|
|||
Interest rate swap contracts
|
30.8
|
|
|
—
|
30.8
|
|
|
—
|
||
Interest rate lock commitments
|
2.0
|
|
|
—
|
2.0
|
|
|
—
|
||
Forward loan sale contracts
|
0.2
|
|
|
—
|
0.2
|
|
|
—
|
||
Derivative liabilities:
|
|
|
|
|
|
|
|
|||
Interest rate swap contracts
|
30.8
|
|
|
—
|
30.8
|
|
|
—
|
||
Deferred compensation plan assets
|
17.5
|
|
|
—
|
17.5
|
|
|
—
|
||
Deferred compensation plan liabilities
|
17.5
|
|
|
—
|
17.5
|
|
|
—
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||
As of December 31, 2018
|
Balance
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||
Investment debt securities available-for-sale:
|
|
|
|
|
|
|
||||
U.S. Treasury notes
|
$
|
2.6
|
|
$
|
—
|
$
|
2.6
|
|
$
|
—
|
Obligations of U.S. government agencies
|
559.2
|
|
|
—
|
559.2
|
|
|
—
|
||
U.S. agencies mortgage-backed securities & collateralized mortgage obligations
|
1,544.8
|
|
|
—
|
1,544.8
|
|
|
—
|
||
Private mortgage-backed securities
|
70.2
|
|
|
—
|
70.2
|
|
|
—
|
||
Corporate securities
|
91.9
|
|
|
—
|
91.9
|
|
|
—
|
||
Other investments
|
2.0
|
|
|
—
|
2.0
|
|
|
—
|
||
Loans held for sale
|
33.3
|
|
|
—
|
33.3
|
|
|
—
|
||
Derivative assets:
|
|
|
|
|
|
|
||||
Interest rate swap contracts
|
8.8
|
|
|
—
|
8.8
|
|
|
—
|
||
Interest rate lock commitments
|
1.3
|
|
|
—
|
1.3
|
|
|
—
|
||
Derivative liabilities
|
|
|
|
|
|
|
||||
Interest rate swap contracts
|
8.8
|
|
|
—
|
8.8
|
|
|
—
|
||
Forward loan sales contracts
|
0.6
|
|
|
—
|
0.6
|
|
|
—
|
||
Deferred compensation plan assets
|
12.1
|
|
|
—
|
12.1
|
|
|
—
|
||
Deferred compensation plan liabilities
|
12.1
|
|
|
—
|
12.1
|
|
|
—
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
|||||||
As of September 30, 2019
|
Balance
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||
Impaired loans
|
$
|
27.2
|
|
$
|
—
|
$
|
—
|
$
|
27.2
|
|
Other real estate owned
|
2.9
|
|
|
—
|
|
—
|
2.9
|
|
||
Long-lived assets to be disposed of by sale
|
6.9
|
|
|
—
|
|
—
|
6.9
|
|
||
|
|
|
|
|
|
|
||||
|
|
|
Fair Value Measurements at Reporting Date Using
|
|||||||
As of December 31, 2018
|
Balance
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||
Impaired loans
|
$
|
24.1
|
|
$
|
—
|
$
|
—
|
$
|
24.1
|
|
Other real estate owned
|
0.6
|
|
|
—
|
|
—
|
0.6
|
|
||
Long-lived assets to be disposed of by sale
|
4.9
|
|
|
—
|
|
—
|
4.9
|
|
|
Fair Value As of
|
|
|
|
|
|
|
|||||
|
September 30, 2019
|
December 31, 2018
|
Valuation
Technique
|
Unobservable
Inputs
|
Range
(Weighted Average)
|
|||||||
Impaired loans
|
$
|
27.2
|
|
$
|
24.1
|
|
Appraisal
|
Appraisal adjustment
|
0%
|
-
|
26%
|
(13%)
|
Other real estate owned
|
2.9
|
|
0.6
|
|
Appraisal
|
Appraisal adjustment
|
8%
|
-
|
96%
|
(39%)
|
||
Long-lived assets to be disposed of by sale
|
6.9
|
|
4.9
|
|
Appraisal
|
Appraisal adjustment
|
0%
|
-
|
43%
|
(10%)
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
As of September 30, 2019
|
Carrying Amount
|
Estimated
Fair Value
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||
Financial assets:
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
1,269.6
|
|
$
|
1,269.6
|
|
$
|
1,269.6
|
|
$
|
—
|
|
$
|
—
|
|
Investment debt securities available-for-sale
|
2,732.2
|
|
2,732.2
|
|
—
|
|
2,732.2
|
|
—
|
|
|||||
Investment debt securities held-to-maturity
|
94.9
|
|
97.2
|
|
—
|
|
97.2
|
|
—
|
|
|||||
Accrued interest receivable
|
51.1
|
|
51.1
|
|
—
|
|
51.1
|
|
—
|
|
|||||
Mortgage servicing rights, net
|
29.8
|
|
32.1
|
|
—
|
|
32.1
|
|
—
|
|
|||||
Loans held for sale
|
108.9
|
|
108.9
|
|
—
|
|
108.9
|
|
—
|
|
|||||
Net loans held for investment
|
8,917.6
|
|
8,953.4
|
|
—
|
|
8,926.2
|
|
27.2
|
|
|||||
Derivative assets
|
33.0
|
|
33.0
|
|
—
|
|
33.0
|
|
—
|
|
|||||
Deferred compensation plan assets
|
17.5
|
|
17.5
|
|
—
|
|
17.5
|
|
—
|
|
|||||
Total financial assets
|
$
|
13,254.6
|
|
$
|
13,295.0
|
|
$
|
1,269.6
|
|
$
|
11,998.2
|
|
$
|
27.2
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
||||||||||
Total deposits, excluding time deposits
|
$
|
10,264.6
|
|
$
|
10,264.6
|
|
$
|
10,264.6
|
|
$
|
—
|
|
$
|
—
|
|
Time deposits
|
1,535.0
|
|
1,530.9
|
|
—
|
|
1,530.9
|
|
—
|
|
|||||
Securities sold under repurchase agreements
|
636.9
|
|
636.9
|
|
—
|
|
636.9
|
|
—
|
|
|||||
Accrued interest payable
|
12.3
|
|
12.3
|
|
—
|
|
12.3
|
|
—
|
|
|||||
Long-term debt
|
13.9
|
|
11.3
|
|
—
|
|
11.3
|
|
—
|
|
|||||
Subordinated debentures held by subsidiary trusts
|
86.9
|
|
77.9
|
|
—
|
|
77.9
|
|
—
|
|
|||||
Derivative liabilities
|
30.8
|
|
30.8
|
|
—
|
|
30.8
|
|
—
|
|
|||||
Deferred compensation plan liabilities
|
17.5
|
|
17.5
|
|
—
|
|
17.5
|
|
—
|
|
|||||
Total financial liabilities
|
$
|
12,597.9
|
|
$
|
12,582.2
|
|
$
|
10,264.6
|
|
$
|
2,317.6
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
As of December 31, 2018
|
Carrying Amount
|
Estimated
Fair Value
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||
Financial assets:
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
822.0
|
|
$
|
822.0
|
|
$
|
822.0
|
|
$
|
—
|
|
$
|
—
|
|
Investment debt securities available-for-sale
|
2,270.7
|
|
2,270.7
|
|
—
|
|
2,270.7
|
|
—
|
|
|||||
Investment debt securities held-to-maturity
|
406.8
|
|
400.7
|
|
—
|
|
400.7
|
|
—
|
|
|||||
Accrued interest receivable
|
44.9
|
|
44.9
|
|
—
|
|
44.9
|
|
—
|
|
|||||
Mortgage servicing rights, net
|
27.7
|
|
42.4
|
|
—
|
|
42.4
|
|
—
|
|
|||||
Loans held for sale
|
33.3
|
|
33.3
|
|
—
|
|
33.3
|
|
—
|
|
|||||
Net loans held for investment
|
8,397.4
|
|
8,439.7
|
|
—
|
|
8,415.6
|
|
24.1
|
|
|||||
Derivative assets
|
10.1
|
|
10.1
|
|
—
|
|
10.1
|
|
—
|
|
|||||
Deferred compensation plan assets
|
12.1
|
|
12.1
|
|
—
|
|
12.1
|
|
—
|
|
|||||
Total financial assets
|
$
|
12,025.0
|
|
$
|
12,075.9
|
|
$
|
822.0
|
|
$
|
11,229.8
|
|
$
|
24.1
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
||||||||||
Total deposits, excluding time deposits
|
$
|
9,363.7
|
|
$
|
9,363.7
|
|
$
|
9,363.7
|
|
$
|
—
|
|
$
|
—
|
|
Time deposits
|
1,317.0
|
|
1,299.0
|
|
—
|
|
1,299.0
|
|
—
|
|
|||||
Securities sold under repurchase agreements
|
712.4
|
|
712.4
|
|
—
|
|
712.4
|
|
—
|
|
|||||
Accrued interest payable
|
7.8
|
|
7.8
|
|
—
|
|
7.8
|
|
—
|
|
|||||
Long-term debt
|
15.8
|
|
13.0
|
|
—
|
|
13.0
|
|
—
|
|
|||||
Subordinated debentures held by subsidiary trusts
|
86.9
|
|
84.9
|
|
—
|
|
84.9
|
|
—
|
|
|||||
Derivative liabilities
|
9.4
|
|
9.4
|
|
—
|
|
9.4
|
|
—
|
|
|||||
Deferred compensation plan liabilities
|
12.1
|
|
12.1
|
|
—
|
|
12.1
|
|
—
|
|
|||||
Total financial liabilities
|
$
|
11,525.1
|
|
$
|
11,502.3
|
|
$
|
9,363.7
|
|
$
|
2,138.6
|
|
$
|
—
|
|
(16)
|
Recent Authoritative Accounting Guidance
|
(1)
|
Average loan balances include non-accrual loans. Interest income on loans includes amortization of deferred loan fees net of deferred loan costs, which is not material.
|
(2)
|
Interest income and average rates for tax exempt loans and securities are presented on a fully taxable equivalent, or FTE, basis utilizing the 21% federal income tax rate.
|
(3)
|
Net FTE interest margin during the period equals (i) the difference between annualized interest income on interest earning assets and the annualized interest expense on interest bearing liabilities, divided by (ii) average interest earning assets for the period.
|
(4)
|
Calculated by dividing total annualized interest on interest bearing liabilities by the sum of total interest bearing liabilities plus non-interest bearing deposits.
|
(1)
|
Average loan balances include non-accrual loans. Interest income on loans includes amortization of deferred loan fees net of deferred loan costs, which is not material.
|
(2)
|
Interest income and average rates for tax exempt loans and securities are presented on a fully taxable equivalent, or FTE, basis utilizing the 21% federal income tax rate.
|
(3)
|
Net FTE interest margin during the period equals (i) the difference between annualized interest income on interest earning assets and the annualized interest expense on interest bearing liabilities, divided by (ii) average interest earning assets for the period.
|
(4)
|
Calculated by dividing total annualized interest on interest bearing liabilities by the sum of total interest bearing liabilities plus non-interest bearing deposits.
|
Analysis of Interest Changes Due to Volume and Rates
|
|
|
|
|
|
|
|
|
|||||||||||||||
(Dollars in millions)
|
Three Months Ended September 30, 2019
compared with Three Months Ended September 30, 2018 |
|
Nine Months Ended September 30, 2019
compared with Nine Months Ended September 30, 2018 |
||||||||||||||||||||
|
Volume
|
|
Rate
|
|
Net
|
|
Volume
|
|
Rate
|
|
Net
|
||||||||||||
Interest earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans (1)
|
$
|
11.9
|
|
|
$
|
4.2
|
|
|
$
|
16.1
|
|
|
$
|
39.1
|
|
|
$
|
20.9
|
|
|
$
|
60.0
|
|
Investment securities (1)
|
0.4
|
|
|
0.7
|
|
|
1.1
|
|
|
0.1
|
|
|
4.5
|
|
|
4.6
|
|
||||||
Interest bearing deposits in banks
|
2.2
|
|
|
0.7
|
|
|
2.9
|
|
|
3.4
|
|
|
4.0
|
|
|
7.4
|
|
||||||
Total change
|
14.5
|
|
|
5.6
|
|
|
20.1
|
|
|
42.6
|
|
|
29.4
|
|
|
72.0
|
|
||||||
Interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Demand deposits
|
0.1
|
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|
0.4
|
|
|
1.2
|
|
|
1.6
|
|
||||||
Savings deposits
|
0.4
|
|
|
1.4
|
|
|
1.8
|
|
|
0.8
|
|
|
6.6
|
|
|
7.4
|
|
||||||
Time deposits
|
0.9
|
|
|
1.9
|
|
|
2.8
|
|
|
2.2
|
|
|
6.1
|
|
|
8.3
|
|
||||||
Repurchase agreements
|
—
|
|
|
0.3
|
|
|
0.3
|
|
|
0.1
|
|
|
1.2
|
|
|
1.3
|
|
||||||
Other borrowed funds
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
||||||
Long-term debt
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
||||||
Subordinated debentures held by subsidiary trusts
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.4
|
|
|
0.5
|
|
||||||
Total change
|
1.2
|
|
|
3.4
|
|
|
4.6
|
|
|
3.4
|
|
|
15.6
|
|
|
19.0
|
|
||||||
Increase in FTE net interest income (1)
|
$
|
13.3
|
|
|
$
|
2.2
|
|
|
$
|
15.5
|
|
|
$
|
39.2
|
|
|
$
|
13.8
|
|
|
$
|
53.0
|
|
Non-interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Dollars in millions)
|
Three Months Ended September 30,
|
|
$ Change
|
% Change
|
|
Nine Months Ended September 30,
|
|
$ Change
|
% Change
|
||||||||||||||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||||||||
Payment services revenues
|
$
|
10.8
|
|
|
$
|
10.1
|
|
|
$
|
0.7
|
|
6.9
|
%
|
|
$
|
30.7
|
|
|
$
|
33.5
|
|
|
$
|
(2.8
|
)
|
(8.4
|
)%
|
Mortgage banking revenues
|
10.5
|
|
|
6.7
|
|
|
3.8
|
|
56.7
|
|
|
24.3
|
|
|
19.3
|
|
|
5.0
|
|
25.9
|
|
||||||
Wealth management revenues
|
5.9
|
|
|
5.8
|
|
|
0.1
|
|
1.7
|
|
|
17.8
|
|
|
17.5
|
|
|
0.3
|
|
1.7
|
|
||||||
Service charges on deposit accounts
|
5.3
|
|
|
5.7
|
|
|
(0.4
|
)
|
(7.0
|
)
|
|
15.7
|
|
|
16.6
|
|
|
(0.9
|
)
|
(5.4
|
)
|
||||||
Other service charges, commissions and fees
|
4.2
|
|
|
3.4
|
|
|
0.8
|
|
23.5
|
|
|
12.7
|
|
|
11.1
|
|
|
1.6
|
|
14.4
|
|
||||||
Investment securities gains (losses), net
|
0.1
|
|
|
—
|
|
|
0.1
|
|
NM
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
NM
|
|
||||||
Other income
|
4.0
|
|
|
4.5
|
|
|
(0.5
|
)
|
(11.1
|
)
|
|
13.4
|
|
|
11.0
|
|
|
2.4
|
|
21.8
|
|
||||||
Total non-interest income
|
$
|
40.8
|
|
|
$
|
36.2
|
|
|
$
|
4.6
|
|
12.7
|
%
|
|
$
|
114.7
|
|
|
$
|
109.0
|
|
|
$
|
5.7
|
|
5.2
|
%
|
Non-interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Dollars in millions)
|
Three Months Ended September 30,
|
|
$ Change
|
% Change
|
|
Nine Months Ended September 30,
|
|
$ Change
|
% Change
|
||||||||||||||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||||||||
Salaries and wages
|
$
|
40.6
|
|
|
$
|
36.8
|
|
|
$
|
3.8
|
|
10.3
|
%
|
|
$
|
117.1
|
|
|
$
|
105.7
|
|
|
$
|
11.4
|
|
10.8
|
%
|
Employee benefits
|
11.9
|
|
|
11.9
|
|
|
—
|
|
—
|
|
|
40.3
|
|
|
35.5
|
|
|
4.8
|
|
13.5
|
|
||||||
Outsourced technology services
|
7.9
|
|
|
6.8
|
|
|
1.1
|
|
16.2
|
|
|
23.9
|
|
|
20.9
|
|
|
3.0
|
|
14.4
|
|
||||||
Occupancy, net
|
7.1
|
|
|
6.5
|
|
|
0.6
|
|
9.2
|
|
|
21.2
|
|
|
18.8
|
|
|
2.4
|
|
12.8
|
|
||||||
Furniture and equipment
|
3.3
|
|
|
3.5
|
|
|
(0.2
|
)
|
(5.7
|
)
|
|
10.2
|
|
|
9.5
|
|
|
0.7
|
|
7.4
|
|
||||||
OREO expense, net of income
|
(0.8
|
)
|
|
0.2
|
|
|
(1.0
|
)
|
NM
|
|
|
(0.5
|
)
|
|
0.3
|
|
|
(0.8
|
)
|
NM
|
|
||||||
Professional fees
|
3.5
|
|
|
1.9
|
|
|
1.6
|
|
84.2
|
|
|
7.7
|
|
|
5.2
|
|
|
2.5
|
|
48.1
|
|
||||||
FDIC insurance premiums
|
0.4
|
|
|
1.4
|
|
|
(1.0
|
)
|
(71.4
|
)
|
|
3.5
|
|
|
4.3
|
|
|
(0.8
|
)
|
(18.6
|
)
|
||||||
Mortgage servicing rights amortization
|
1.2
|
|
|
0.8
|
|
|
0.4
|
|
50.0
|
|
|
3.1
|
|
|
2.3
|
|
|
0.8
|
|
34.8
|
|
||||||
Core deposit intangibles amortization
|
3.0
|
|
|
2.0
|
|
|
1.0
|
|
50.0
|
|
|
8.3
|
|
|
5.5
|
|
|
2.8
|
|
50.9
|
|
||||||
Other expenses
|
17.4
|
|
|
15.8
|
|
|
1.6
|
|
10.1
|
|
|
50.8
|
|
|
48.1
|
|
|
2.7
|
|
5.6
|
|
||||||
Acquisition related expenses
|
3.8
|
|
|
3.1
|
|
|
0.7
|
|
22.6
|
|
|
19.6
|
|
|
5.4
|
|
|
14.2
|
|
NM
|
|
||||||
Total non-interest expense
|
$
|
99.3
|
|
|
$
|
90.7
|
|
|
$
|
8.6
|
|
9.5
|
%
|
|
$
|
305.2
|
|
|
$
|
261.5
|
|
|
$
|
43.7
|
|
16.7
|
%
|
Non-Performing Loans by Loan Type
|
|
|
|
|
|
|
|
||||||
(Dollars in millions)
|
September 30,
2019 |
|
Percent
of Total
|
|
December 31, 2018
|
|
Percent
of Total
|
||||||
Real estate:
|
|
|
|
|
|
|
|
||||||
Commercial
|
$
|
14.3
|
|
|
25.0
|
%
|
|
$
|
10.0
|
|
|
17.2
|
%
|
Construction:
|
|
|
|
|
|
|
|
||||||
Land acquisition and development
|
1.1
|
|
|
1.9
|
|
|
3.9
|
|
|
6.7
|
|
||
Residential
|
1.2
|
|
|
2.1
|
|
|
1.0
|
|
|
1.7
|
|
||
Commercial
|
0.5
|
|
|
0.9
|
|
|
0.2
|
|
|
0.3
|
|
||
Total construction
|
2.8
|
|
|
4.9
|
|
|
5.1
|
|
|
8.7
|
|
||
Residential
|
4.5
|
|
|
7.9
|
|
|
6.8
|
|
|
11.8
|
|
||
Agricultural
|
5.2
|
|
|
9.1
|
|
|
12.6
|
|
|
21.7
|
|
||
Total real estate
|
26.8
|
|
|
46.9
|
|
|
34.5
|
|
|
59.4
|
|
||
Consumer
|
4.1
|
|
|
7.2
|
|
|
3.5
|
|
|
6.0
|
|
||
Commercial
|
23.1
|
|
|
40.5
|
|
|
17.1
|
|
|
29.4
|
|
||
Agricultural
|
3.1
|
|
|
5.4
|
|
|
3.0
|
|
|
5.2
|
|
||
Total non-performing loans
|
$
|
57.1
|
|
|
100.0
|
%
|
|
$
|
58.1
|
|
|
100.0
|
%
|
(1)
|
Specific valuation allowances associated with impaired loans. Specific valuation allowances are determined based on assessment of the fair value of the collateral underlying the loans as determined through independent appraisals, the present value of future cash flows, observable market prices and any relevant qualitative or environmental factors impacting loans. No specific valuation allowances are recorded for impaired loans that are adequately secured.
|
(2)
|
Historical valuation allowances based on loan loss experience for similar loans with similar characteristics and trends. Historical valuation allowances are determined by applying percentage loss factors to the credit exposures from outstanding loans. For commercial, agricultural and real estate loans, loss factors are applied based on the internal risk classifications of these loans. For consumer loans, loss factors are applied on a portfolio basis. For commercial, agriculture and real estate loans, loss factor percentages are based on a migration analysis of our historical loss experience, designed to account for credit deterioration. For consumer loans, loss factor percentages are based on a three-year loss history.
|
(3)
|
General valuation allowances determined based on changes in the nature of the loan portfolio, overall portfolio quality, industry concentrations, delinquency trends, general economic conditions and other qualitative risk factors both internal and external to us.
|
Allowance for Loan Losses
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in millions)
|
Three Months Ended
|
||||||||||||||||||
|
Sep 30,
2019 |
|
Jun 30,
2019 |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
||||||||||
Balance at beginning of period
|
$
|
74.2
|
|
|
$
|
72.4
|
|
|
$
|
73.0
|
|
|
$
|
73.6
|
|
|
$
|
74.1
|
|
Provision charged to operating expense
|
2.6
|
|
|
3.8
|
|
|
3.7
|
|
|
1.6
|
|
|
2.0
|
|
|||||
Charge offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.5
|
|
|
0.3
|
|
|||||
Construction
|
—
|
|
|
0.6
|
|
|
1.3
|
|
|
0.4
|
|
|
0.3
|
|
|||||
Residential
|
0.3
|
|
|
0.3
|
|
|
0.6
|
|
|
—
|
|
|
0.1
|
|
|||||
Consumer
|
2.8
|
|
|
3.3
|
|
|
3.0
|
|
|
2.8
|
|
|
3.0
|
|
|||||
Commercial
|
1.6
|
|
|
1.1
|
|
|
0.8
|
|
|
1.0
|
|
|
1.1
|
|
|||||
Agricultural
|
—
|
|
|
0.3
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|||||
Total charge-offs
|
4.7
|
|
|
5.6
|
|
|
6.0
|
|
|
4.7
|
|
|
4.8
|
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
|
0.4
|
|
|
—
|
|
|||||
Construction
|
0.6
|
|
|
0.6
|
|
|
—
|
|
|
0.2
|
|
|
0.5
|
|
|||||
Residential
|
0.1
|
|
|
0.4
|
|
|
—
|
|
|
0.5
|
|
|
0.1
|
|
|||||
Consumer
|
0.8
|
|
|
1.2
|
|
|
1.1
|
|
|
0.9
|
|
|
1.2
|
|
|||||
Commercial
|
1.3
|
|
|
1.2
|
|
|
0.4
|
|
|
0.5
|
|
|
0.5
|
|
|||||
Total recoveries
|
2.9
|
|
|
3.6
|
|
|
1.7
|
|
|
2.5
|
|
|
2.3
|
|
|||||
Net charge-offs
|
1.8
|
|
|
2.0
|
|
|
4.3
|
|
|
2.2
|
|
|
2.5
|
|
|||||
Balance at end of period
|
$
|
75.0
|
|
|
$
|
74.2
|
|
|
$
|
72.4
|
|
|
$
|
73.0
|
|
|
$
|
73.6
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Period end loans
|
$
|
9,101.5
|
|
|
$
|
9,059.3
|
|
|
$
|
8,493.2
|
|
|
$
|
8,503.7
|
|
|
$
|
8,518.0
|
|
Average loans
|
9,053.6
|
|
|
8,948.3
|
|
|
8,467.9
|
|
|
8,520.7
|
|
|
8,128.9
|
|
|||||
Net loans charged-off to average loans, annualized
|
0.08
|
%
|
|
0.09
|
%
|
|
0.21
|
%
|
|
0.10
|
%
|
|
0.12
|
%
|
|||||
Allowance to period end loans
|
0.82
|
|
|
0.82
|
|
|
0.85
|
|
|
0.86
|
|
|
0.86
|
|
Deposits
|
|
|
|
|
|
|
|
||||||
(Dollars in millions)
|
September 30,
2019 |
|
Percent
of Total
|
|
December 31,
2018 |
|
Percent
of Total
|
||||||
Non-interest bearing demand
|
$
|
3,639.7
|
|
|
30.8
|
%
|
|
$
|
3,158.3
|
|
|
29.6
|
%
|
Interest bearing:
|
|
|
|
|
|
|
|
||||||
Demand
|
3,054.1
|
|
|
25.9
|
|
|
2,957.5
|
|
|
27.7
|
|
||
Savings
|
3,570.8
|
|
|
30.3
|
|
|
3,247.9
|
|
|
30.4
|
|
||
Time, $100 and over
|
705.2
|
|
|
6.0
|
|
|
547.6
|
|
|
5.1
|
|
||
Time, other (1)
|
829.8
|
|
|
7.0
|
|
|
769.4
|
|
|
7.2
|
|
||
Total interest bearing
|
$
|
8,159.9
|
|
|
69.2
|
%
|
|
$
|
7,522.4
|
|
|
70.4
|
%
|
Total deposits
|
$
|
11,799.6
|
|
|
100.0
|
%
|
|
$
|
10,680.7
|
|
|
100.0
|
%
|
(1)
|
Included in Time, other are Certificate of Deposit Account Registry Service, or CDARS, deposits of $113.7 million and brokered deposits of $2.9 million as of September 30, 2019, compared to $87.1 million and $24.1 million as of December 31, 2018, respectively.
|
|
|
|
|
|
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
Total Number of
|
|
Maximum Number
|
|||||
|
|
|
|
|
|
Shares Purchased as Part
|
|
of Shares That May
|
|||||
|
|
Total Number of
|
|
Average Price
|
|
of Publicly Announced
|
|
Yet Be Purchased Under
|
|||||
Period
|
|
Shares Purchased (1)
|
|
Paid Per Share
|
|
Plans or Programs
|
|
the Plans or Programs
|
|||||
July 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
2,500,000
|
|
August 2019
|
|
675
|
|
|
39.05
|
|
|
—
|
|
|
2,500,000
|
|
|
September 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,500,000
|
|
|
Total
|
|
675
|
|
|
$
|
39.05
|
|
|
—
|
|
|
2,500,000
|
|
(1)
|
Stock repurchases were redemptions of vested restricted shares tendered in lieu of cash for payment of income tax withholding amounts by participants of the Company’s 2015 Equity Compensation Plan.
|
Item 3.
|
Defaults upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Exhibit Number
|
|
Description
|
|
|
|
3.1*
|
|
First Interstate BancSystem, Inc. Third Amended and Restated Articles of Incorporation.
|
|
|
|
31.1*
|
|
Certification by Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended.
|
|
|
|
31.2*
|
|
Certification by Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended.
|
|
|
|
32**
|
|
18 U.S.C. Section 1350 Certifications.
|
|
|
|
101*
|
|
Interactive Data File - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
|
|
|
|
104*
|
|
Cover Page Interactive Data File - The cover page XBRL tags are embedded within the inline XBRL document (included in Exhibit 101)
|
|
|
|
*
|
Filed herewith.
|
|
**
|
Furnished herewith.
|
|
|
|
|
FIRST INTERSTATE BANCSYSTEM, INC.
|
|
|
|
|
|
|
|
Date:
|
November 6, 2019
|
|
|
By:
|
/S/ KEVIN P. RILEY
|
|
|
|
|
|
Kevin P. Riley
President and Chief Executive Officer
|
|
|
|
|
|
|
Date:
|
November 6, 2019
|
|
|
By:
|
/S/ MARCY D. MUTCH
|
|
|
|
|
|
Marcy D. Mutch
Executive Vice President and Chief Financial Officer
|
|
|
|
|
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of First Interstate BancSystem, Inc.
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(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 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/ KEVIN P. RILEY
|
Kevin P. Riley
|
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of First Interstate BancSystem, Inc;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(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
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5.
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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 registrant’s board of directors (or persons performing the equivalent functions);
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a.
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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
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b.
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ MARCY D. MUTCH
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Marcy D. Mutch
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Executive Vice President and Chief Financial Officer
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/s/ KEVIN P. RILEY
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Kevin P. Riley
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President and Chief Executive Officer
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/s/ MARCY D. MUTCH
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Marcy D. Mutch
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Executive Vice President and Chief Financial Officer
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