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þ
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Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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¨
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Illinois
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36-3873352
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Title of Each Class
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Name of Each Exchange on Which Registered
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Common Stock, no par value
Series D Preferred Stock, no par value
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The NASDAQ Global Select Market
The NASDAQ Global Select Market
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Large accelerated filer
þ
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Accelerated filer
¨
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Non-Accelerated filer
¨
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Smaller reporting company
¨
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Emerging growth company
¨
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Page
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PART I
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ITEM 1
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Business
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ITEM 1A.
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Risk Factors
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ITEM 1B.
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Unresolved Staff Comments
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ITEM 2.
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Properties
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ITEM 3.
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Legal Proceedings
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ITEM 4.
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Mine Safety Disclosures
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PART II
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ITEM 5.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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ITEM 6.
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Selected Financial Data
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ITEM 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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ITEM 7A.
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Quantitative and Qualitative Disclosures About Market Risk
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ITEM 8.
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Financial Statements and Supplementary Data
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ITEM 9.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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ITEM 9A.
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Controls and Procedures
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ITEM 9B.
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Other Information
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PART III
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ITEM 10.
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Directors, Executive Officers and Corporate Governance
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ITEM 11.
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Executive Compensation
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ITEM 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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ITEM 13.
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Certain Relationships and Related Transactions, and Director Independence
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ITEM 14.
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Principal Accountant Fees and Services
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PART IV
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ITEM 15.
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Exhibits, Financial Statement Schedules
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ITEM 16.
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Form 10-K Summary
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Signatures
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3
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4
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5
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|
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•
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Increasing our lending as other financial institutions pulled back;
|
•
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Hiring quality lenders and other staff away from larger and smaller institutions that may have substantially deviated from a customer-focused approach or who may have substantially limited the ability of their staff to provide credit or other services to their customers;
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6
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|
|
|
|
•
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Investing in dislocated assets such as the purchased life insurance premium finance portfolio, the Canadian commercial premium finance portfolio, trust and investment management companies and certain collateralized mortgage obligations; and
|
•
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Purchasing banks and banking assets either directly or through the FDIC-assisted process in areas key to our geographic expansion.
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•
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Leveraged its internal loan pipeline and external growth opportunities to grow earnings assets to increase net interest income;
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•
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Continued efforts to reduce interest costs by improving our funding mix;
|
•
|
Written call option contracts on certain securities as an economic hedge to mitigate overall interest rate risk and enhance the securities' overall return by using fees generated from these options;
|
•
|
Entered into mirror-image swap transactions to both satisfy customer preferences and maintain variable rate exposure;
|
•
|
Completed strategic acquisitions to expand our presence in existing and complimentary markets;
|
•
|
Focused on cost control and leveraging our current infrastructure to grow without a commensurate increase in operating expenses; and
|
•
|
Expanded the Wintrust Asset Finance direct leasing niche.
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|
7
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|
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8
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9
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|
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|
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•
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Common Equity Tier 1 capital consists primarily of common stock and related surplus (net of Treasury stock), retained earnings, and certain minority interests, subject to certain regulatory adjustments. For us and our subsidiary banks, Common Equity Tier 1 capital does not include most elements of accumulated other comprehensive income (“AOCI”) because we exercised an opt-out election that was available to us with respect to certain changes in the capital treatment of AOCI. We made this election to avoid variations in the level of our capital depending on fluctuations in the fair value of our securities and derivatives portfolio.
|
•
|
Tier 1 capital is composed of Common Equity Tier 1 capital and Additional Tier 1 capital. Additional Tier 1 capital consists primarily of non-cumulative perpetual preferred stock and related surplus, certain minority interests and, subject to certain regulatory limits, certain grandfathered cumulative perpetual preferred stock and certain grandfathered trust preferred securities.
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•
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Total capital is composed of Tier 1 capital and Tier 2 capital. Tier 2 capital consists primarily of capital instruments and related surplus meeting specified requirements, and may include cumulative preferred stock and long-term perpetual preferred stock, mandatory convertible securities, intermediate preferred stock, certain trust preferred securities and subordinated debt. Also included in Tier 2 capital is the allowance for loan and lease losses limited to a maximum of 1.25% of risk-weighted assets (“RWAs”) and, for institutions that have exercised the opt-out election regarding the treatment of AOCI up to 45% of net unrealized gains on available-for-sale equity securities with readily determinable fair market values.
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|
10
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|
|
|
|
•
|
Common Equity Tier 1 capital to RWAs ratio (“Common Equity Tier 1 Capital Ratio”) of 4.5%;
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•
|
Tier 1 capital to RWAs ratio (“Tier 1 Capital Ratio”) of 6.0%;
|
•
|
Total capital to RWAs ratio (“Total Capital Ratio”) of 8.0%; and
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•
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Tier 1 capital to quarterly average assets (net of goodwill, certain other intangible assets and certain other deductions) ratio (“Tier 1 Leverage Ratio”) of 4.0%.
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•
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Common Equity Tier 1 Capital Ratio of 6.5% or greater;
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•
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Tier 1 Capital Ratio of 8.0% or greater;
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•
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Total Capital Ratio of 10.0% or greater; and
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•
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Tier 1 Leverage Ratio of 5.0% or greater.
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11
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Minimum Regulatory Capital Ratio Plus Capital Conservation Buffer
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||||
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2018
|
|
2019
|
||
Common Equity Tier 1 Capital Ratio
|
|
6.38
|
%
|
|
7.00
|
%
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Tier 1 Capital Ratio
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|
7.88
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|
|
8.50
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Total Capital Ratio
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9.88
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10.50
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Company Regulatory Capital Ratios
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||||||||||
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Minimum Regulatory Capital Ratio for the Company
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Minimum Ratio + Capital Conservation Buffer
(1)
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Well-Capitalized Minimum
for the Company
(2)
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The Company
|
||||
Common Equity Tier 1 Capital Ratio
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4.50
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%
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6.38
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%
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N/A
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9.3
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%
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Tier 1 Capital Ratio
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6.00
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7.88
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6.00
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|
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9.7
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Total Capital Ratio
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8.00
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|
9.88
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10.00
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|
11.6
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Tier 1 Leverage Ratio
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4.00
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N/A
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N/A
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9.1
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(1)
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Reflects the Capital Conservation Buffer of 1.875% applicable during 2018. The Company already meets the Capital Conservation Buffer at the fully phased-in level of 2.5%.
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(2)
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Reflects the well-capitalized standard applicable to the Company for purposes of the Federal Reserve’s Regulation Y. The Federal Reserve has not yet revised the well-capitalized standard for BHCs to reflect the higher capital requirements imposed under the U.S. Basel III Rule or to add Common Equity Tier 1 capital ratio and Tier 1 leverage ratio requirements to this standard. As a result, the Common Equity Tier 1 capital ratio and Tier 1 leverage ratio are denoted as “N/A” in this column. If the Federal Reserve were to apply the same or a very similar well-capitalized standard to BHCs as the standard applicable to our subsidiary banks, the Company’s capital ratios as of December 31, 2018 would exceed such revised well-capitalized standard.
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12
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13
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|
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|
|
14
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|
|
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|
15
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|
|
|
|
•
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the federal Truth-In-Lending Act and Regulation Z issued by the CFPB, governing disclosures of credit terms to consumer borrowers;
|
•
|
The Real Estate Settlement Procedures Act and Regulation X issued by the CFPB, requiring that borrowers for mortgage loans for one- to four-family residential real estate receive various disclosures, including good faith estimates of settlement costs, lender servicing and escrow account practices, and prohibiting certain practices that increase the cost of settlement services;
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•
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the Home Mortgage Disclosure Act and Regulation C issued by the CFPB, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves;
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•
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the Equal Credit Opportunity Act and Regulation B issued by the CFPB, prohibiting discrimination on the basis of various prohibited factors in extending credit;
|
•
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the Fair Credit Reporting Act and Regulation V issued by the CFPB, governing the use and provision of information to consumer reporting agencies;
|
•
|
the Fair Debt Collection Practices Act and Regulation F issued by the CFPB, governing the manner in which consumer debts may be collected by collection agencies;
|
•
|
the Service Members Civil Relief Act, applying to all debts incurred prior to commencement of active military service (including credit card and other open-end debt) and limiting the amount of interest, including service and renewal charges and any other fees or charges (other than bona fide insurance) that is related to the obligation or liability; and
|
•
|
the guidance of the various federal agencies charged with the responsibility of implementing such federal laws.
|
•
|
the Truth in Savings Act and Regulation DD issued by the CFPB, which require disclosure of deposit terms to consumers;
|
•
|
Regulation CC issued by the Federal Reserve Board, which relates to the availability of deposit funds to consumers;
|
•
|
the Right to Financial Privacy Act, which imposes a duty to maintain the confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; and
|
•
|
the Electronic Fund Transfer Act and Regulation E issued by the CFPB, which governs automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services.
|
|
16
|
|
|
|
|
|
17
|
|
|
|
|
|
18
|
|
|
|
|
|
19
|
|
|
|
|
|
20
|
|
|
|
|
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||||
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury
|
|
$
|
126,199
|
|
|
$
|
126,404
|
|
|
$
|
144,904
|
|
|
$
|
143,822
|
|
|
$
|
142,741
|
|
|
$
|
141,983
|
|
U.S. Government agencies
|
|
139,420
|
|
|
140,307
|
|
|
157,638
|
|
|
156,915
|
|
|
189,540
|
|
|
189,152
|
|
||||||
Municipal
|
|
136,831
|
|
|
138,490
|
|
|
113,197
|
|
|
115,352
|
|
|
129,446
|
|
|
131,809
|
|
||||||
Corporate notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financial issuers
|
|
97,079
|
|
|
90,045
|
|
|
30,309
|
|
|
30,051
|
|
|
65,260
|
|
|
64,392
|
|
||||||
Other
|
|
1,000
|
|
|
1,000
|
|
|
1,000
|
|
|
999
|
|
|
1,000
|
|
|
999
|
|
||||||
Mortgage-backed:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
|
1,641,146
|
|
|
1,586,339
|
|
|
1,291,695
|
|
|
1,260,186
|
|
|
1,185,448
|
|
|
1,131,402
|
|
||||||
Collateralized mortgage obligations
|
|
43,819
|
|
|
43,496
|
|
|
60,092
|
|
|
59,539
|
|
|
30,105
|
|
|
29,682
|
|
||||||
Equity securities
(2)
|
|
—
|
|
|
—
|
|
|
34,234
|
|
|
36,802
|
|
|
32,608
|
|
|
35,248
|
|
||||||
Total available-for-sale securities
|
|
$
|
2,185,494
|
|
|
$
|
2,126,081
|
|
|
$
|
1,833,069
|
|
|
$
|
1,803,666
|
|
|
$
|
1,776,148
|
|
|
$
|
1,724,667
|
|
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agencies
|
|
$
|
814,864
|
|
|
$
|
787,429
|
|
|
$
|
579,062
|
|
|
$
|
565,019
|
|
|
$
|
433,343
|
|
|
$
|
408,880
|
|
Municipal
|
|
252,575
|
|
|
248,667
|
|
|
247,387
|
|
|
247,497
|
|
|
202,362
|
|
|
198,722
|
|
||||||
Total held-to-maturity securities
|
|
$
|
1,067,439
|
|
|
$
|
1,036,096
|
|
|
$
|
826,449
|
|
|
$
|
812,516
|
|
|
$
|
635,705
|
|
|
$
|
607,602
|
|
Equity securities with readily determinable fair value
(2)
|
|
$
|
34,410
|
|
|
$
|
34,717
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Consisting entirely of residential mortgage-backed securities, none of which are subprime.
|
(2)
|
As a result of the adoption of ASU No. 2016-01 effective January 1, 2018, equity securities with readily determinable fair value are no longer presented within available-for-sale securities and are now presented as equity securities with readily determinable fair values in the Company's Consolidated Statements of Condition for the current period.
|
|
21
|
|
|
|
|
(Dollars in thousands)
|
|
Within 1
year
|
|
From 1 to
5 years
|
|
From 5 to
10 years
|
|
After 10
years
|
|
Mortgage-
backed
|
|
Equity Securities
|
|
Total
|
||||||||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. Treasury
|
|
$
|
25,835
|
|
|
$
|
100,569
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
126,404
|
|
U.S. Government agencies
|
|
9,977
|
|
|
3,360
|
|
|
9,595
|
|
|
117,375
|
|
|
—
|
|
|
—
|
|
|
140,307
|
|
|||||||
Municipal
|
|
46,341
|
|
|
41,348
|
|
|
38,596
|
|
|
12,205
|
|
|
—
|
|
|
—
|
|
|
138,490
|
|
|||||||
Corporate notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Financial issuers
|
|
—
|
|
|
23,030
|
|
|
67,015
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90,045
|
|
|||||||
Other
|
|
—
|
|
|
1,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
|||||||
Mortgage-backed:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,586,339
|
|
|
—
|
|
|
1,586,339
|
|
|||||||
Collateralized mortgage obligations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,496
|
|
|
—
|
|
|
43,496
|
|
|||||||
Total available-for-sale securities
|
|
$
|
82,153
|
|
|
$
|
169,307
|
|
|
$
|
115,206
|
|
|
$
|
129,580
|
|
|
$
|
1,629,835
|
|
|
$
|
—
|
|
|
$
|
2,126,081
|
|
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. Government agencies
|
|
$
|
2,002
|
|
|
$
|
3,065
|
|
|
$
|
203,705
|
|
|
$
|
606,092
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
814,864
|
|
Municipal
|
|
8,007
|
|
|
26,371
|
|
|
92,192
|
|
|
126,005
|
|
|
—
|
|
|
—
|
|
|
252,575
|
|
|||||||
Total held-to-maturity securities
|
|
$
|
10,009
|
|
|
$
|
29,436
|
|
|
$
|
295,897
|
|
|
$
|
732,097
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,067,439
|
|
Equity securities with readily determinable fair value
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34,717
|
|
|
$
|
34,717
|
|
|
|
Within
1 year
|
|
From 1
to 5 years
|
|
From 5 to
10 years
|
|
After
10 years
|
|
Mortgage-
backed
|
|
Equity Securities
|
|
Total
|
|||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
U.S. Treasury
|
|
1.36
|
%
|
|
2.75
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
2.47
|
%
|
U.S. Government agencies
|
|
1.31
|
|
|
5.33
|
|
|
3.85
|
|
|
4.19
|
|
|
—
|
|
|
—
|
|
|
3.99
|
|
Municipal
|
|
2.50
|
|
|
2.96
|
|
|
3.64
|
|
|
3.61
|
|
|
—
|
|
|
—
|
|
|
3.05
|
|
Corporate notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Financial issuers
|
|
—
|
|
|
3.72
|
|
|
4.27
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.13
|
|
Other
|
|
—
|
|
|
3.42
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.42
|
|
Mortgage-backed:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.88
|
|
|
—
|
|
|
2.88
|
|
Collateralized mortgage obligations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.07
|
|
|
—
|
|
|
3.07
|
|
Total available-for-sale securities
|
|
2.00
|
%
|
|
2.99
|
%
|
|
4.02
|
%
|
|
4.14
|
%
|
|
2.89
|
%
|
|
—
|
%
|
|
3.00
|
%
|
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
U.S. Government agencies
|
|
1.70
|
%
|
|
1.66
|
%
|
|
3.06
|
%
|
|
3.36
|
%
|
|
—
|
%
|
|
—
|
%
|
|
3.27
|
%
|
Municipal
|
|
1.71
|
|
|
2.65
|
|
|
3.40
|
|
|
3.55
|
|
|
—
|
|
|
—
|
|
|
3.34
|
|
Total held-to-maturity securities
|
|
1.71
|
%
|
|
2.55
|
%
|
|
3.17
|
%
|
|
3.39
|
%
|
|
—
|
%
|
|
—
|
%
|
|
3.28
|
%
|
Equity securities with readily determinable fair value
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
1.12
|
%
|
|
1.12
|
%
|
|
22
|
|
|
|
|
ITEM 1A.
|
RISK FACTORS
|
|
23
|
|
|
|
|
|
24
|
|
|
|
|
|
25
|
|
|
|
|
•
|
if our banking subsidiaries report net losses or their earnings are weak relative to our cash flow needs;
|
•
|
if it is necessary for us to make capital injections to our banking subsidiaries;
|
•
|
if changes in regulations require us to maintain a greater level of capital, as more fully described below;
|
•
|
if we are unable to access our revolving credit facility due to a failure to satisfy financial and other covenants; or
|
•
|
if we are unable to raise additional capital on terms that are satisfactory to us.
|
•
|
the ability to develop, maintain and build upon long-term customer relationships based on top quality service and high ethical standards;
|
•
|
the scope, relevance and pricing of products and services offered to meet customer needs and demands;
|
•
|
the ability to expand our market position;
|
•
|
the ability to uphold our reputation in the marketplace;
|
•
|
the rate at which we introduce new products and services relative to our competitors;
|
•
|
customer satisfaction with our level of service; and
|
•
|
industry and general economic trends.
|
|
26
|
|
|
|
|
•
|
potential exposure to unknown or contingent liabilities or asset quality issues of the target company;
|
•
|
failure to adequately estimate the level of loan losses at the target company;
|
•
|
difficulty and expense of integrating the operations and personnel of the target company;
|
•
|
potential disruption to our business, including diversion of our management's time and attention;
|
•
|
the possible loss of key employees and customers of the target company;
|
•
|
difficulty in estimating the value of the target company; and
|
•
|
potential changes in banking or tax laws or regulations that may affect the target company.
|
|
27
|
|
|
|
|
|
28
|
|
|
|
|
|
29
|
|
|
|
|
|
30
|
|
|
|
|
|
31
|
|
|
|
|
|
32
|
|
|
|
|
|
33
|
|
|
|
|
|
34
|
|
|
|
|
|
35
|
|
|
|
|
|
36
|
|
|
|
|
|
37
|
|
|
|
|
|
38
|
|
|
|
|
|
39
|
|
|
|
|
|
40
|
|
|
|
|
ITEM 5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
|
|
2018
|
|
2017
|
||||||||||||
High
|
|
Low
|
|
High
|
|
Low
|
||||||||||
Fourth Quarter
|
|
$
|
88.81
|
|
|
$
|
61.53
|
|
|
$
|
86.80
|
|
|
$
|
76.00
|
|
Third Quarter
|
|
92.56
|
|
|
84.61
|
|
|
80.52
|
|
|
67.74
|
|
||||
Second Quarter
|
|
99.96
|
|
|
83.47
|
|
|
79.27
|
|
|
64.14
|
|
||||
First Quarter
|
|
91.67
|
|
|
76.70
|
|
|
76.71
|
|
|
65.29
|
|
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
||||||
Wintrust Financial Corporation
|
|
100.00
|
|
|
101.39
|
|
|
105.20
|
|
|
157.35
|
|
|
178.60
|
|
|
144.17
|
|
NASDAQ — Total US
|
|
100.00
|
|
|
112.46
|
|
|
113.00
|
|
|
127.70
|
|
|
155.01
|
|
|
146.57
|
|
NASDAQ — Bank Index
|
|
100.00
|
|
|
111.83
|
|
|
114.30
|
|
|
144.63
|
|
|
171.24
|
|
|
143.15
|
|
|
41
|
|
|
|
|
Record Date
|
|
Payable Date
|
|
Dividend per Share
|
November 8, 2018
|
|
November 23, 2018
|
|
$0.19
|
August 9, 2018
|
|
August 23, 2018
|
|
$0.19
|
May 10, 2018
|
|
May 24, 2018
|
|
$0.19
|
February 8, 2018
|
|
February 22, 2018
|
|
$0.19
|
November 9, 2017
|
|
November 24, 2017
|
|
$0.14
|
August 10, 2017
|
|
August 24, 2017
|
|
$0.14
|
May 11, 2017
|
|
May 25, 2017
|
|
$0.14
|
February 9, 2017
|
|
February 23, 2017
|
|
$0.14
|
|
42
|
|
|
|
|
ITEM 6.
|
SELECTED FINANCIAL DATA
|
|
|
Years Ended December 31,
|
||||||||||||||||||
(Dollars in thousands, except per share data)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Selected Financial Condition Data (at end of year):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
$
|
31,244,849
|
|
|
$
|
27,915,970
|
|
|
$
|
25,668,553
|
|
|
$
|
22,909,348
|
|
|
$
|
19,998,840
|
|
Total loans, excluding loans held-for-sale and covered loans
|
|
23,820,691
|
|
|
21,640,797
|
|
|
19,703,172
|
|
|
17,118,117
|
|
|
14,409,398
|
|
|||||
Total deposits
|
|
26,094,678
|
|
|
23,183,347
|
|
|
21,658,632
|
|
|
18,639,634
|
|
|
16,281,844
|
|
|||||
Junior subordinated debentures
|
|
253,566
|
|
|
253,566
|
|
|
253,566
|
|
|
268,566
|
|
|
249,493
|
|
|||||
Total shareholders’ equity
|
|
3,267,570
|
|
|
2,976,939
|
|
|
2,695,617
|
|
|
2,352,274
|
|
|
2,069,822
|
|
|||||
Selected Statements of Income Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
|
$
|
964,903
|
|
|
$
|
832,076
|
|
|
$
|
722,193
|
|
|
$
|
641,529
|
|
|
$
|
598,575
|
|
Net revenue
(1)
|
|
1,321,053
|
|
|
1,151,582
|
|
|
1,047,623
|
|
|
913,126
|
|
|
813,815
|
|
|||||
Net income
|
|
343,166
|
|
|
257,682
|
|
|
206,875
|
|
|
156,749
|
|
|
151,398
|
|
|||||
Net income per common share – Basic
|
|
5.95
|
|
|
4.53
|
|
|
3.83
|
|
|
3.05
|
|
|
3.12
|
|
|||||
Net income per common share – Diluted
|
|
5.86
|
|
|
4.40
|
|
|
3.66
|
|
|
2.93
|
|
|
2.98
|
|
|||||
Selected Financial Ratios and Other Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Performance Ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest margin
|
|
3.59
|
%
|
|
3.41
|
%
|
|
3.24
|
%
|
|
3.34
|
%
|
|
3.51
|
%
|
|||||
Net interest margin - fully taxable equivalent (non-GAAP)
(2)
|
|
3.61
|
|
|
3.44
|
|
|
3.26
|
|
|
3.36
|
|
|
3.53
|
|
|||||
Non-interest income to average assets
|
|
1.23
|
|
|
1.21
|
|
|
1.34
|
|
|
1.29
|
|
|
1.15
|
|
|||||
Non-interest expense to average assets
|
|
2.85
|
|
|
2.78
|
|
|
2.81
|
|
|
2.99
|
|
|
2.93
|
|
|||||
Net overhead ratio
(3)
|
|
1.62
|
|
|
1.56
|
|
|
1.47
|
|
|
1.70
|
|
|
1.77
|
|
|||||
Return on average assets
|
|
1.18
|
|
|
0.98
|
|
|
0.85
|
|
|
0.75
|
|
|
0.81
|
|
|||||
Return on average common equity
|
|
11.26
|
|
|
9.26
|
|
|
8.37
|
|
|
7.15
|
|
|
7.77
|
|
|||||
Return on average tangible common equity (non-GAAP)
(2)
|
|
13.95
|
|
|
11.63
|
|
|
10.90
|
|
|
9.44
|
|
|
10.14
|
|
|||||
Average total assets
|
|
$
|
29,028,420
|
|
|
$
|
26,369,702
|
|
|
$
|
24,292,231
|
|
|
$
|
20,999,837
|
|
|
$
|
18,685,341
|
|
Average total shareholders’ equity
|
|
3,098,740
|
|
|
2,842,081
|
|
|
2,549,929
|
|
|
2,232,989
|
|
|
1,993,959
|
|
|||||
Average loans to average deposits ratio (excluding covered loans)
|
|
93.7
|
%
|
|
92.7
|
%
|
|
90.9
|
%
|
|
89.9
|
%
|
|
88.0
|
%
|
|||||
Average loans to average deposits ratio (including covered loans)
|
|
93.7
|
|
|
92.9
|
|
|
91.4
|
|
|
91.0
|
|
|
89.8
|
%
|
|||||
Common Share Data at end of year:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Market price per common share
|
|
$
|
66.49
|
|
|
$
|
82.37
|
|
|
$
|
72.57
|
|
|
$
|
48.52
|
|
|
$
|
46.76
|
|
Book value per common share
(2)
|
|
$
|
55.71
|
|
|
$
|
50.96
|
|
|
$
|
47.12
|
|
|
$
|
43.42
|
|
|
$
|
41.52
|
|
Tangible book value per common share
(2)
|
|
$
|
44.73
|
|
|
$
|
41.68
|
|
|
$
|
37.08
|
|
|
$
|
33.17
|
|
|
$
|
32.45
|
|
Common shares outstanding
|
|
56,407,558
|
|
|
55,965,207
|
|
|
51,880,540
|
|
|
48,383,279
|
|
|
46,805,055
|
|
|||||
Other Data at end of year:
(5)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leverage Ratio
|
|
9.1
|
%
|
|
9.3
|
%
|
|
8.9
|
%
|
|
9.1
|
%
|
|
10.2
|
%
|
|||||
Tier 1 capital to risk-weighted assets
|
|
9.7
|
|
|
9.9
|
|
|
9.7
|
|
|
10.0
|
|
|
11.6
|
|
|||||
Common Equity Tier 1 capital to risk-weighted assets
|
|
9.3
|
|
|
9.4
|
|
|
8.6
|
|
|
8.4
|
|
|
N/A
|
|
|||||
Total capital to risk-weighted assets
|
|
11.6
|
|
|
12.0
|
|
|
11.9
|
|
|
12.2
|
|
|
13.0
|
|
|||||
Allowance for credit losses
(4)
|
|
$
|
154,164
|
|
|
$
|
139,174
|
|
|
$
|
123,964
|
|
|
$
|
106,349
|
|
|
$
|
92,480
|
|
Non-performing loans
|
|
113,234
|
|
|
90,162
|
|
|
87,454
|
|
|
84,057
|
|
|
78,677
|
|
|||||
Allowance for credit losses
(4)
to total loans, excluding covered loans
|
|
0.65
|
%
|
|
0.64
|
%
|
|
0.63
|
%
|
|
0.62
|
%
|
|
0.64
|
%
|
|||||
Non-performing loans to total loans, excluding covered loans
|
|
0.48
|
|
|
0.42
|
|
|
0.44
|
|
|
0.49
|
|
|
0.55
|
|
|||||
Number of:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiaries
|
|
15
|
|
|
15
|
|
|
15
|
|
|
15
|
|
|
15
|
|
|||||
Banking offices
|
|
167
|
|
|
157
|
|
|
155
|
|
|
152
|
|
|
140
|
|
(1)
|
Net revenue includes net interest income and non-interest income.
|
(2)
|
See Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures/Ratios,” for a reconciliation of this performance measure/ratio to GAAP.
|
(3)
|
The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s total average assets. A lower ratio indicates a higher degree of efficiency.
|
(4)
|
The allowance for credit losses includes both the allowance for loan losses and the allowance for unfunded lending-related commitments, but excludes the allowance for covered loan losses.
|
(5)
|
Asset quality ratios exclude covered loans.
|
|
43
|
|
|
|
|
ITEM 7.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
economic conditions that affect the economy, housing prices, the job market and other factors that may adversely affect the Company’s liquidity and the performance of its loan portfolios, particularly in the markets in which it operates;
|
•
|
negative effects suffered by us or our customers resulting from changes in U.S. trade policies;
|
•
|
the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses;
|
•
|
estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;
|
•
|
the financial success and economic viability of the borrowers of our commercial loans;
|
•
|
commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;
|
•
|
the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for loan and lease losses;
|
•
|
inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;
|
•
|
changes in the level and volatility of interest rates, the capital markets and other market indices that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;
|
•
|
competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;
|
•
|
failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of the Company’s recent or future acquisitions;
|
•
|
unexpected difficulties and losses related to FDIC-assisted acquisitions;
|
•
|
harm to the Company’s reputation;
|
•
|
any negative perception of the Company’s financial strength;
|
•
|
ability of the Company to raise additional capital on acceptable terms when needed;
|
•
|
disruption in capital markets, which may lower fair values for the Company’s investment portfolio;
|
•
|
ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;
|
•
|
failure or breaches of our security systems or infrastructure, or those of third parties;
|
•
|
security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion or data corruption attempts and identity theft;
|
•
|
adverse effects on our information technology systems resulting from failures, human error or cyberattacks;
|
•
|
adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;
|
•
|
increased costs as a result of protecting our customers from the impact of stolen debit card information;
|
•
|
accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;
|
|
44
|
|
|
|
|
•
|
ability of the Company to attract and retain senior management experienced in the banking and financial services industries;
|
•
|
environmental liability risk associated with lending activities;
|
•
|
the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;
|
•
|
losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;
|
•
|
the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
|
•
|
the soundness of other financial institutions;
|
•
|
the expenses and delayed returns inherent in opening new branches and de novo banks;
|
•
|
examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act;
|
•
|
changes in accounting standards, rules and interpretations such as the new CECL standard, and the impact on the Company’s financial statements;
|
•
|
the ability of the Company to receive dividends from its subsidiaries;
|
•
|
uncertainty about the future of LIBOR;
|
•
|
a decrease in the Company’s capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise;
|
•
|
legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies;
|
•
|
a lowering of our credit rating;
|
•
|
changes in U.S. monetary policy and changes to the Federal Reserve’s balance sheet as a result of the end of its program of quantitative easing or otherwise;
|
•
|
restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business resulting from the Dodd-Frank Act;
|
•
|
increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment;
|
•
|
the impact of heightened capital requirements;
|
•
|
increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC;
|
•
|
delinquencies or fraud with respect to the Company’s premium finance business;
|
•
|
credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans;
|
•
|
the Company’s ability to comply with covenants under its credit facility; and
|
•
|
fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation.
|
|
45
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
Percentage % or
Basis Point (bp)
Change
|
|
Percentage % or
Basis Point (bp)
Change
|
||||||||||
(Dollars in thousands, except per share data)
|
|
2018
|
|
2017
|
|
2016
|
|
2017 to 2018
|
|
2016 to 2017
|
||||||
Net income
|
|
$
|
343,166
|
|
|
$
|
257,682
|
|
|
$
|
206,875
|
|
|
33%
|
|
25%
|
Net income per common share — Diluted
|
|
5.86
|
|
|
4.40
|
|
|
3.66
|
|
|
33
|
|
20
|
|||
Net revenue
(1)
|
|
1,321,053
|
|
|
1,151,582
|
|
|
1,047,623
|
|
|
15
|
|
10
|
|||
Net interest income
|
|
964,903
|
|
|
832,076
|
|
|
722,193
|
|
|
16
|
|
15
|
|||
Net interest margin
|
|
3.59
|
%
|
|
3.41
|
%
|
|
3.24
|
%
|
|
18 bp
|
|
17 bp
|
|||
Net interest margin - fully taxable equivalent (non-GAAP)
(2)
|
|
3.61
|
|
|
3.44
|
|
|
3.26
|
|
|
17
|
|
18
|
|||
Net overhead ratio
(3)
|
|
1.62
|
|
|
1.56
|
|
|
1.47
|
|
|
6
|
|
9
|
|||
Return on average assets
|
|
1.18
|
|
|
0.98
|
|
|
0.85
|
|
|
20
|
|
13
|
|||
Return on average common equity
|
|
11.26
|
|
|
9.26
|
|
|
8.37
|
|
|
200
|
|
89
|
|||
Return on average tangible common equity (non-GAAP)
(2)
|
|
13.95
|
|
|
11.63
|
|
|
10.90
|
|
|
232
|
|
73
|
|||
At end of period
|
|
|
|
|
|
|
|
|
|
|
||||||
Total assets
|
|
$
|
31,244,849
|
|
|
$
|
27,915,970
|
|
|
$
|
25,668,553
|
|
|
12%
|
|
9%
|
Total loans, excluding loans held-for-sale, excluding covered loans
|
|
23,820,691
|
|
|
21,640,797
|
|
|
19,703,172
|
|
|
10
|
|
10
|
|||
Total deposits
|
|
26,094,678
|
|
|
23,183,347
|
|
|
21,658,632
|
|
|
13
|
|
7
|
|||
Total shareholders’ equity
|
|
3,267,570
|
|
|
2,976,939
|
|
|
2,695,617
|
|
|
10
|
|
10
|
|||
Book value per common share
(2)
|
|
$
|
55.71
|
|
|
$
|
50.96
|
|
|
$
|
47.12
|
|
|
9
|
|
8
|
Tangible book value per common share
(2)
|
|
44.73
|
|
|
41.68
|
|
|
37.08
|
|
|
7
|
|
12
|
|||
Market price per common share
|
|
66.49
|
|
|
82.37
|
|
|
72.57
|
|
|
(19)
|
|
14
|
|||
Excluding covered loans:
|
|
|
|
|
|
|
|
|
|
|
||||||
Allowance for credit losses to total loans
(4)
|
|
0.65
|
%
|
|
0.64
|
%
|
|
0.63
|
%
|
|
1 bp
|
|
1 bp
|
|||
Non-performing loans to total loans
|
|
0.48
|
|
|
0.42
|
|
|
0.44
|
|
|
6
|
|
(2)
|
(1)
|
Net revenue is net interest income plus non-interest income.
|
(2)
|
See “Non-GAAP Financial Measures/Ratios” for additional information on this performance measure/ratio.
|
(3)
|
The net overhead ratio is calculated by netting total non-interest expense and total non-interest income and dividing by that period’s total average assets. A lower ratio indicates a higher degree of efficiency.
|
(4)
|
The allowance for credit losses includes both the allowance for loan losses and the allowance for lending-related commitments.
|
|
46
|
|
|
|
|
|
47
|
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||
(Dollars and shares in thousands, except per share data)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Calculation of Net Interest Margin and Efficiency Ratio
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(A) Interest Income (GAAP)
|
|
$
|
1,170,810
|
|
|
$
|
946,468
|
|
|
$
|
812,457
|
|
|
$
|
718,464
|
|
|
$
|
671,267
|
|
Taxable-equivalent adjustment:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
-Loans
|
|
3,403
|
|
|
3,760
|
|
|
2,282
|
|
|
1,431
|
|
|
1,128
|
|
|||||
-Liquidity management assets
|
|
2,258
|
|
|
3,713
|
|
|
3,630
|
|
|
3,221
|
|
|
2,000
|
|
|||||
-Other earning assets
|
|
11
|
|
|
14
|
|
|
40
|
|
|
57
|
|
|
41
|
|
|||||
(B) Interest Income - FTE
|
|
$
|
1,176,482
|
|
|
$
|
953,955
|
|
|
$
|
818,409
|
|
|
$
|
723,173
|
|
|
$
|
674,436
|
|
(C) Interest Expense (GAAP)
|
|
205,907
|
|
|
114,392
|
|
|
90,264
|
|
|
76,935
|
|
|
72,692
|
|
|||||
(D) Net interest Income - FTE (B minus C)
|
|
$
|
970,575
|
|
|
$
|
839,563
|
|
|
$
|
728,145
|
|
|
$
|
646,238
|
|
|
$
|
601,744
|
|
(E) Net Interest Income (GAAP) (A minus C)
|
|
$
|
964,903
|
|
|
$
|
832,076
|
|
|
$
|
722,193
|
|
|
$
|
641,529
|
|
|
$
|
598,575
|
|
Net interest margin (GAAP-derived)
|
|
3.59
|
%
|
|
3.41
|
%
|
|
3.24
|
%
|
|
3.34
|
%
|
|
3.51
|
%
|
|||||
Net interest margin — FTE
|
|
3.61
|
|
|
3.44
|
|
|
3.26
|
|
|
3.36
|
|
|
3.53
|
|
|||||
(F) Non-interest income (GAAP)
|
|
$
|
356,150
|
|
|
$
|
319,506
|
|
|
$
|
325,430
|
|
|
$
|
271,597
|
|
|
$
|
215,240
|
|
(G) (Losses) gains on investment securities, net (GAAP)
|
|
(2,898
|
)
|
|
45
|
|
|
7,645
|
|
|
323
|
|
|
(504
|
)
|
|||||
(H) Non-interest expense (GAAP)
|
|
826,088
|
|
|
731,817
|
|
|
681,685
|
|
|
628,419
|
|
|
546,847
|
|
|||||
Efficiency ratio (H/(E+F-G))
|
|
62.40
|
%
|
|
63.55
|
%
|
|
65.55
|
%
|
|
68.84
|
%
|
|
67.15
|
%
|
|||||
Efficiency ratio - FTE (H/(D+F-G))
|
|
62.13
|
|
|
63.14
|
|
|
65.18
|
|
|
68.49
|
|
|
66.89
|
|
|||||
Calculation of Tangible Common Equity ratio (at period end)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total shareholders' equity (GAAP)
|
|
$
|
3,267,570
|
|
|
$
|
2,976,939
|
|
|
$
|
2,695,617
|
|
|
$
|
2,352,274
|
|
|
$
|
2,069,822
|
|
(I) Less: Convertible preferred stock (GAAP)
|
|
—
|
|
|
—
|
|
|
(126,257
|
)
|
|
(126,287
|
)
|
|
(126,467
|
)
|
|||||
Less: Non-convertible preferred stock (GAAP)
|
|
(125,000
|
)
|
|
(125,000
|
)
|
|
(125,000
|
)
|
|
(125,000
|
)
|
|
—
|
|
|||||
Less: Goodwill and other intangible assets (GAAP)
|
|
(622,565
|
)
|
|
(519,505
|
)
|
|
(520,438
|
)
|
|
(495,970
|
)
|
|
(424,445
|
)
|
|||||
(J) Total tangible common shareholders’ equity
|
|
$
|
2,520,005
|
|
|
$
|
2,332,434
|
|
|
$
|
1,923,922
|
|
|
$
|
1,605,017
|
|
|
$
|
1,518,910
|
|
Total assets (GAAP)
|
|
$
|
31,244,849
|
|
|
$
|
27,915,970
|
|
|
$
|
25,668,553
|
|
|
$
|
22,909,348
|
|
|
$
|
19,998,840
|
|
Less: Goodwill and other intangible assets (GAAP)
|
|
(622,565
|
)
|
|
(519,505
|
)
|
|
(520,438
|
)
|
|
(495,970
|
)
|
|
(424,445
|
)
|
|||||
(K) Total tangible assets
|
|
$
|
30,622,284
|
|
|
$
|
27,396,465
|
|
|
$
|
25,148,115
|
|
|
$
|
22,413,378
|
|
|
$
|
19,574,395
|
|
Tangible common equity ratio (J/K)
|
|
8.2
|
%
|
|
8.5
|
%
|
|
7.7
|
%
|
|
7.2
|
%
|
|
7.8
|
%
|
|||||
Tangible common equity ratio, assuming full conversion of preferred stock ((J-I)/K)
|
|
8.2
|
|
|
8.5
|
|
|
8.2
|
|
|
7.7
|
|
|
8.4
|
|
|||||
Calculation of book value per common share
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total shareholders’ equity (GAAP)
|
|
$
|
3,267,570
|
|
|
$
|
2,976,939
|
|
|
$
|
2,695,617
|
|
|
$
|
2,352,274
|
|
|
$
|
2,069,822
|
|
Less: Preferred stock (GAAP)
|
|
(125,000
|
)
|
|
(125,000
|
)
|
|
(251,257
|
)
|
|
(251,287
|
)
|
|
(126,467
|
)
|
|||||
(L) Total common equity
|
|
$
|
3,142,570
|
|
|
$
|
2,851,939
|
|
|
$
|
2,444,360
|
|
|
$
|
2,100,987
|
|
|
$
|
1,943,355
|
|
(M) Actual common shares outstanding
|
|
56,408
|
|
|
55,965
|
|
|
51,881
|
|
|
48,383
|
|
|
46,805
|
|
|||||
Book value per common share (L/M)
|
|
$
|
55.71
|
|
|
$
|
50.96
|
|
|
$
|
47.12
|
|
|
$
|
43.42
|
|
|
$
|
41.52
|
|
Tangible book value per common share (J/M)
|
|
44.67
|
|
|
41.68
|
|
|
37.08
|
|
|
33.17
|
|
|
32.45
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Calculation of return on average common equity
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(N) Net income applicable to common shares
|
|
$
|
334,966
|
|
|
$
|
247,904
|
|
|
$
|
192,362
|
|
|
$
|
145,880
|
|
|
$
|
145,075
|
|
Add: After-tax intangible asset amortization
|
|
3,407
|
|
|
2,907
|
|
|
2,986
|
|
|
2,879
|
|
|
2,881
|
|
|||||
(O) Tangible net income applicable to common shares
|
|
$
|
338,373
|
|
|
$
|
250,811
|
|
|
$
|
195,348
|
|
|
$
|
148,759
|
|
|
$
|
147,956
|
|
Total average shareholders' equity
|
|
$
|
3,098,740
|
|
|
$
|
2,842,081
|
|
|
$
|
2,549,929
|
|
|
$
|
2,232,989
|
|
|
$
|
1,993,959
|
|
Less: Average preferred stock
|
|
(125,000
|
)
|
|
(165,114
|
)
|
|
(251,258
|
)
|
|
(191,416
|
)
|
|
(126,471
|
)
|
|||||
(P) Total average common shareholders' equity
|
|
$
|
2,973,740
|
|
|
$
|
2,676,967
|
|
|
$
|
2,298,671
|
|
|
$
|
2,041,573
|
|
|
$
|
1,867,488
|
|
Less: Average intangible assets
|
|
(548,223
|
)
|
|
(519,910
|
)
|
|
(506,241
|
)
|
|
(466,225
|
)
|
|
(408,642
|
)
|
|||||
(Q) Total average tangible common shareholders’ equity
|
|
$
|
2,425,517
|
|
|
$
|
2,157,057
|
|
|
$
|
1,792,430
|
|
|
$
|
1,575,348
|
|
|
$
|
1,458,846
|
|
Return on average common equity (N/P)
|
|
11.26
|
%
|
|
9.26
|
%
|
|
8.37
|
%
|
|
7.15
|
%
|
|
7.77
|
%
|
|||||
Return on average tangible common equity (O/Q)
|
|
13.95
|
|
|
11.63
|
|
|
10.90
|
|
|
9.44
|
|
|
10.14
|
|
|
48
|
|
|
|
|
|
49
|
|
|
|
|
•
|
The Company’s
2018
provision for credit losses, excluding covered loans, totaled $34.8 million, compared to $30.0 million in 2017 and $34.8 million in
2016
. Net charge-offs, excluding covered loans, increased to $19.7 million in
2018
(of which $8.8 million related to commercial and commercial real estate loans), compared to $15.0 million in
2017
(of which $5.3 million related to commercial and commercial real estate loans) and $16.9 million in
2016
(of which $5.3 million related to commercial and commercial real estate loans).
|
•
|
The Company's allowance for loan losses increased to
$152.8 million
at
December 31, 2018
, reflecting an increase of $14.9 million, or 11%, when compared to
2017
. At
December 31, 2018
, approximately $60.3 million, or 39%, of the allowance for loan losses was associated with commercial real estate loans and another $67.8 million, or 44%, was associated with commercial loans.
|
|
50
|
|
|
|
|
•
|
The Company has significant exposure to commercial real estate. At
December 31, 2018
, $6.9 billion, or 29%, of our loan portfolio was commercial real estate, with approximately 87% located in our market area. The commercial real estate loan portfolio, excluding purchased credit impaired (“PCI”) loans, was comprised of
$902.3 million
related to land and construction,
$939.3 million
related to office buildings loans,
$892.5 million
related to retail loans,
$902.2 million
related to industrial use,
$976.6 million
related to multi-family loans and
$2.2 billion
related to mixed use and other use types. In analyzing the commercial real estate market, the Company does not rely upon the assessment of broad market statistical data, in large part because the Company’s market area is diverse and covers many communities, each of which is impacted differently by economic forces affecting the Company’s general market area. As such, the extent of the decline in real estate valuations can vary meaningfully among the different types of commercial and other real estate loans made by the Company. The Company uses its multi-chartered structure and local management knowledge to analyze and manage the local market conditions at each of its banks. As of
December 31, 2018
, the Company had approximately
$19.1 million
of non-performing commercial real estate loans representing approximately 0.28% of the total commercial real estate loan portfolio.
|
•
|
Total non-performing loans (loans on non-accrual status and loans more than 90 days past due and still accruing interest) were
$113.2 million
(of which
$19.1 million
, or 17%
,
was related to commercial real estate) at
December 31, 2018
, an increase of $23.1 million compared to
December 31, 2017
. Non-performing loans as a percentage of total loans were
0.48%
at
December 31, 2018
compared to
0.42%
at
December 31, 2017
.
|
•
|
The Company’s other real estate owned decreased by $15.8 million, to
$24.8 million
during
2018
, from
$40.6 million
at
December 31, 2017
. The decrease in other real estate owned is primarily a result of $19.4 million of OREO disposals and resolutions during 2018. The
$24.8 million
of other real estate owned as of
December 31, 2018
was comprised of
$19.9 million
of commercial real estate property,
$3.4 million
of residential real estate property and
$1.4 million
of residential real estate development property.
|
|
51
|
|
|
|
|
|
52
|
|
|
|
|
|
53
|
|
|
|
|
|
54
|
|
|
|
|
|
55
|
|
|
|
|
|
56
|
|
|
|
|
|
57
|
|
|
|
|
|
58
|
|
|
|
|
|
59
|
|
|
|
|
|
Average Balance
for the year ended December 31,
|
|
Interest
for the year ended December 31,
|
|
Yield/Rate
for the year ended December 31,
|
|||||||||||||||||||||||||||
(Dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest bearing deposits with banks and cash equivalents
|
$
|
888,671
|
|
|
$
|
856,020
|
|
|
$
|
829,845
|
|
|
$
|
17,091
|
|
|
$
|
9,254
|
|
|
$
|
4,240
|
|
|
1.92
|
%
|
|
1.08
|
%
|
|
0.52
|
%
|
Investment securities
|
3,045,555
|
|
|
2,590,260
|
|
|
2,611,909
|
|
|
89,640
|
|
|
67,028
|
|
|
65,668
|
|
|
2.94
|
|
|
2.59
|
|
|
2.51
|
|
||||||
FHLB and FRB stock
|
101,681
|
|
|
89,333
|
|
|
120,726
|
|
|
5,331
|
|
|
4,370
|
|
|
4,287
|
|
|
5.24
|
|
|
4.89
|
|
|
3.55
|
|
||||||
Total liquidity management assets
(1) (6)
|
$
|
4,035,907
|
|
|
$
|
3,535,613
|
|
|
$
|
3,562,480
|
|
|
$
|
112,062
|
|
|
$
|
80,652
|
|
|
$
|
74,195
|
|
|
2.78
|
%
|
|
2.28
|
%
|
|
2.08
|
%
|
Other earning assets
(1) (2) (6)
|
20,681
|
|
|
25,951
|
|
|
28,992
|
|
|
777
|
|
|
662
|
|
|
931
|
|
|
3.75
|
|
|
2.55
|
|
|
3.21
|
|
||||||
Mortgage loans held-for-sale
|
332,863
|
|
|
319,147
|
|
|
418,256
|
|
|
15,738
|
|
|
12,332
|
|
|
14,953
|
|
|
4.73
|
|
|
3.86
|
|
|
3.58
|
|
||||||
Loans, net of unearned income
(1) (3) (6)
|
22,500,482
|
|
|
20,469,799
|
|
|
18,210,005
|
|
|
1,047,905
|
|
|
858,058
|
|
|
722,741
|
|
|
4.66
|
|
|
4.19
|
|
|
3.96
|
|
||||||
Covered loans
|
—
|
|
|
40,665
|
|
|
102,948
|
|
|
—
|
|
|
2,251
|
|
|
5,589
|
|
|
—
|
|
|
5.54
|
|
|
5.43
|
|
||||||
Total earning assets
(6)
|
$
|
26,889,933
|
|
|
$
|
24,391,175
|
|
|
$
|
22,322,681
|
|
|
$
|
1,176,482
|
|
|
$
|
953,955
|
|
|
$
|
818,409
|
|
|
4.38
|
%
|
|
3.91
|
%
|
|
3.67
|
%
|
Allowance for loan and covered loan losses
|
(148,342
|
)
|
|
(133,432
|
)
|
|
(118,229
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and due from banks
|
266,086
|
|
|
239,638
|
|
|
248,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other assets
|
2,020,743
|
|
|
1,872,321
|
|
|
1,839,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
29,028,420
|
|
|
$
|
26,369,702
|
|
|
$
|
24,292,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deposits — interest bearing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
NOW and interest bearing demand deposits
|
$
|
2,436,791
|
|
|
$
|
2,402,254
|
|
|
$
|
2,438,052
|
|
|
$
|
9,773
|
|
|
$
|
5,027
|
|
|
$
|
4,014
|
|
|
0.40
|
%
|
|
0.21
|
%
|
|
0.16
|
%
|
Wealth management deposits
|
2,356,145
|
|
|
2,125,177
|
|
|
1,877,020
|
|
|
27,839
|
|
|
13,952
|
|
|
8,206
|
|
|
1.18
|
|
|
0.66
|
|
|
0.44
|
|
||||||
Money market accounts
|
5,105,244
|
|
|
4,482,137
|
|
|
4,343,332
|
|
|
42,973
|
|
|
12,588
|
|
|
9,254
|
|
|
0.84
|
|
|
0.28
|
|
|
0.21
|
|
||||||
Savings accounts
|
2,684,661
|
|
|
2,471,663
|
|
|
1,887,748
|
|
|
11,444
|
|
|
7,715
|
|
|
3,313
|
|
|
0.43
|
|
|
0.31
|
|
|
0.18
|
|
||||||
Time deposits
|
4,872,590
|
|
|
4,423,067
|
|
|
4,074,734
|
|
|
74,524
|
|
|
44,044
|
|
|
33,622
|
|
|
1.53
|
|
|
1.00
|
|
|
0.83
|
|
||||||
Total interest bearing deposits
|
$
|
17,455,431
|
|
|
$
|
15,904,298
|
|
|
$
|
14,620,886
|
|
|
$
|
166,553
|
|
|
$
|
83,326
|
|
|
$
|
58,409
|
|
|
0.95
|
%
|
|
0.52
|
%
|
|
0.40
|
%
|
FHLB advances
|
713,539
|
|
|
380,412
|
|
|
653,529
|
|
|
12,412
|
|
|
8,798
|
|
|
10,886
|
|
|
1.74
|
|
|
2.31
|
|
|
1.67
|
|
||||||
Other borrowings
|
289,615
|
|
|
255,136
|
|
|
248,753
|
|
|
8,599
|
|
|
5,370
|
|
|
4,355
|
|
|
2.97
|
|
|
2.10
|
|
|
1.75
|
|
||||||
Subordinated notes
|
139,140
|
|
|
139,022
|
|
|
138,912
|
|
|
7,121
|
|
|
7,116
|
|
|
7,111
|
|
|
5.12
|
|
|
5.12
|
|
|
5.12
|
|
||||||
Junior subordinated notes
|
253,566
|
|
|
253,566
|
|
|
254,591
|
|
|
11,222
|
|
|
9,782
|
|
|
9,503
|
|
|
4.37
|
|
|
3.81
|
|
|
3.67
|
|
||||||
Total interest-bearing liabilities
|
$
|
18,851,291
|
|
|
$
|
16,932,434
|
|
|
$
|
15,916,671
|
|
|
$
|
205,907
|
|
|
$
|
114,392
|
|
|
$
|
90,264
|
|
|
1.09
|
%
|
|
0.67
|
%
|
|
0.57
|
%
|
Non-interest bearing deposits
|
6,545,251
|
|
|
6,182,048
|
|
|
5,409,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other liabilities
|
533,138
|
|
|
413,139
|
|
|
415,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity
|
3,098,740
|
|
|
2,842,081
|
|
|
2,549,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders’ equity
|
$
|
29,028,420
|
|
|
$
|
26,369,702
|
|
|
$
|
24,292,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate spread
(4) (6)
|
|
|
|
|
|
|
|
|
|
|
|
|
3.29
|
%
|
|
3.24
|
%
|
|
3.10
|
%
|
||||||||||||
Less: Fully tax-equivalent adjustment
|
|
|
|
|
|
|
$
|
(5,672
|
)
|
|
$
|
(7,487
|
)
|
|
$
|
(5,952
|
)
|
|
(0.02
|
)
|
|
(0.03
|
)
|
|
(0.02
|
)
|
||||||
Net free funds/contribution
(5)
|
$
|
8,038,642
|
|
|
$
|
7,458,741
|
|
|
$
|
6,406,010
|
|
|
|
|
|
|
|
|
0.32
|
|
|
0.20
|
|
|
0.16
|
|
||||||
Net interest income/margin
(6)
(GAAP)
|
|
|
|
|
|
|
$
|
964,903
|
|
|
$
|
832,076
|
|
|
$
|
722,193
|
|
|
3.59
|
%
|
|
3.41
|
%
|
|
3.24
|
%
|
||||||
Fully tax-equivalent adjustment
|
|
|
|
|
|
|
5,672
|
|
|
7,487
|
|
|
5,952
|
|
|
0.02
|
|
|
0.03
|
|
|
0.02
|
|
|||||||||
Net interest income/margin
(6)
- FTE
|
|
|
|
|
|
|
$
|
970,575
|
|
|
$
|
839,563
|
|
|
$
|
728,145
|
|
|
3.61
|
%
|
|
3.44
|
%
|
|
3.26
|
%
|
(1)
|
Interest income on tax-advantaged loans, trading securities and investment securities reflects a tax-equivalent adjustment based on a marginal federal corporate tax rate in effect as of the applicable period. The total adjustments for the years ended
December 31, 2018
,
2017
and
2016
were
$5.7 million
,
$7.5 million
and
$6.0 million
, respectively.
|
(2)
|
Other earning assets include brokerage customer receivables and trading account securities.
|
(3)
|
Loans, net of unearned income, include non-accrual loans.
|
(4)
|
Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
|
(5)
|
Net free funds is the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.
|
(6)
|
See “Non-GAAP Financial Measures/Ratios” for additional information on this performance ratio.
|
|
60
|
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
|
2018 Compared to 2017
|
|
2017 Compared to 2016
|
||||||||||||||||||||
(Dollars in thousands)
|
|
Change
Due to
Rate
|
|
Change
Due to
Volume
|
|
Total
Change
|
|
Change
Due to
Rate
|
|
Change
Due to
Volume
|
|
Total
Change
|
||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest bearing deposits with banks and cash equivalents
|
|
$
|
7,457
|
|
|
$
|
380
|
|
|
$
|
7,837
|
|
|
$
|
4,857
|
|
|
$
|
157
|
|
|
$
|
5,014
|
|
Investment securities
|
|
12,039
|
|
|
12,028
|
|
|
24,067
|
|
|
1,925
|
|
|
(648
|
)
|
|
1,277
|
|
||||||
FHLB and FRB stock
|
|
328
|
|
|
633
|
|
|
961
|
|
|
1,373
|
|
|
(1,290
|
)
|
|
83
|
|
||||||
Total liquidity management assets
|
|
$
|
19,824
|
|
|
$
|
13,041
|
|
|
$
|
32,865
|
|
|
$
|
8,155
|
|
|
$
|
(1,781
|
)
|
|
$
|
6,374
|
|
Other earning assets
|
|
268
|
|
|
(150
|
)
|
|
118
|
|
|
(154
|
)
|
|
(89
|
)
|
|
(243
|
)
|
||||||
Mortgage hold for sale
|
|
2,860
|
|
|
546
|
|
|
3,406
|
|
|
6,851
|
|
|
(3,445
|
)
|
|
3,406
|
|
||||||
Loans, net of unearned income
|
|
100,551
|
|
|
89,653
|
|
|
190,204
|
|
|
36,503
|
|
|
91,309
|
|
|
127,812
|
|
||||||
Covered loans
|
|
(1,126
|
)
|
|
(1,125
|
)
|
|
(2,251
|
)
|
|
108
|
|
|
(3,446
|
)
|
|
(3,338
|
)
|
||||||
Total interest income
|
|
$
|
122,377
|
|
|
$
|
101,965
|
|
|
$
|
224,342
|
|
|
$
|
51,463
|
|
|
$
|
82,548
|
|
|
$
|
134,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits — interest bearing:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
NOW and interest bearing demand deposits
|
|
$
|
3,671
|
|
|
$
|
1,075
|
|
|
$
|
4,746
|
|
|
$
|
1,050
|
|
|
$
|
(37
|
)
|
|
$
|
1,013
|
|
Wealth management deposits
|
|
9,713
|
|
|
4,174
|
|
|
13,887
|
|
|
3,169
|
|
|
2,577
|
|
|
5,746
|
|
||||||
Money market accounts
|
|
28,537
|
|
|
1,848
|
|
|
30,385
|
|
|
3,075
|
|
|
259
|
|
|
3,334
|
|
||||||
Savings accounts
|
|
3,046
|
|
|
683
|
|
|
3,729
|
|
|
3,157
|
|
|
1,245
|
|
|
4,402
|
|
||||||
Time deposits
|
|
25,357
|
|
|
5,123
|
|
|
30,480
|
|
|
7,516
|
|
|
2,906
|
|
|
10,422
|
|
||||||
Total interest expense — deposits
|
|
$
|
70,324
|
|
|
$
|
12,903
|
|
|
$
|
83,227
|
|
|
$
|
17,967
|
|
|
$
|
6,950
|
|
|
$
|
24,917
|
|
FHLB advances
|
|
(2,590
|
)
|
|
6,204
|
|
|
3,614
|
|
|
3,379
|
|
|
(5,467
|
)
|
|
(2,088
|
)
|
||||||
Other borrowings
|
|
1,673
|
|
|
1,556
|
|
|
3,229
|
|
|
911
|
|
|
104
|
|
|
1,015
|
|
||||||
Subordinated notes
|
|
—
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
5
|
|
||||||
Junior subordinated notes
|
|
1,440
|
|
|
—
|
|
|
1,440
|
|
|
342
|
|
|
(63
|
)
|
|
279
|
|
||||||
Total interest expense
|
|
$
|
70,847
|
|
|
$
|
20,668
|
|
|
$
|
91,515
|
|
|
$
|
22,599
|
|
|
$
|
1,529
|
|
|
$
|
24,128
|
|
Net interest income (GAAP)
|
|
$
|
51,530
|
|
|
81,297
|
|
|
132,827
|
|
|
$
|
28,864
|
|
|
81,019
|
|
|
109,883
|
|
||||
Fully tax-equivalent adjustment
|
|
$
|
(2,605
|
)
|
|
$
|
790
|
|
|
$
|
(1,815
|
)
|
|
$
|
1,265
|
|
|
$
|
270
|
|
|
$
|
1,535
|
|
Net interest income - FTE
|
|
$
|
48,925
|
|
|
$
|
82,087
|
|
|
$
|
131,012
|
|
|
$
|
30,129
|
|
|
$
|
81,289
|
|
|
$
|
111,418
|
|
|
61
|
|
|
|
|
|
|
Years ended December 31,
|
|
2018 compared to 2017
|
|
2017 compared to 2016
|
||||||||||||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
||||||||||||
Brokerage
|
|
$
|
22,391
|
|
|
$
|
22,863
|
|
|
$
|
25,519
|
|
|
$
|
(472
|
)
|
|
(2
|
)%
|
|
$
|
(2,656
|
)
|
|
(10
|
)%
|
Trust and asset management
|
|
68,572
|
|
|
58,903
|
|
|
50,499
|
|
|
9,669
|
|
|
16
|
|
|
8,404
|
|
|
17
|
|
|||||
Total wealth management
|
|
$
|
90,963
|
|
|
$
|
81,766
|
|
|
$
|
76,018
|
|
|
$
|
9,197
|
|
|
11
|
%
|
|
$
|
5,748
|
|
|
8
|
%
|
Mortgage banking
|
|
136,990
|
|
|
113,472
|
|
|
128,743
|
|
|
23,518
|
|
|
21
|
|
|
(15,271
|
)
|
|
(12
|
)
|
|||||
Service charges on deposit accounts
|
|
36,404
|
|
|
34,513
|
|
|
31,210
|
|
|
1,891
|
|
|
5
|
|
|
3,303
|
|
|
11
|
|
|||||
(Losses) gains on investment securities, net
|
|
(2,898
|
)
|
|
45
|
|
|
7,645
|
|
|
(2,943
|
)
|
|
NM
|
|
|
(7,600
|
)
|
|
(99
|
)
|
|||||
Fees from covered call options
|
|
3,519
|
|
|
4,402
|
|
|
11,470
|
|
|
(883
|
)
|
|
(20
|
)
|
|
(7,068
|
)
|
|
(62
|
)
|
|||||
Trading gains (losses), net
|
|
11
|
|
|
(845
|
)
|
|
91
|
|
|
856
|
|
|
NM
|
|
|
(936
|
)
|
|
NM
|
|
|||||
Operating lease income, net
|
|
38,451
|
|
|
29,646
|
|
|
16,441
|
|
|
8,805
|
|
|
30
|
|
|
13,205
|
|
|
80
|
|
|||||
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swap fees
|
|
11,027
|
|
|
7,379
|
|
|
12,024
|
|
|
3,648
|
|
|
49
|
|
|
(4,645
|
)
|
|
(39
|
)
|
|||||
BOLI
|
|
4,982
|
|
|
3,524
|
|
|
3,594
|
|
|
1,458
|
|
|
41
|
|
|
(70
|
)
|
|
(2
|
)
|
|||||
Administrative services
|
|
4,625
|
|
|
4,165
|
|
|
4,409
|
|
|
460
|
|
|
11
|
|
|
(244
|
)
|
|
(6
|
)
|
|||||
Gain on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
3,588
|
|
|
—
|
|
|
—
|
|
|
(3,588
|
)
|
|
(100
|
)
|
|||||
Early pay-offs of capital leases
|
|
601
|
|
|
1,228
|
|
|
728
|
|
|
(627
|
)
|
|
(51
|
)
|
|
500
|
|
|
69
|
|
|||||
Miscellaneous
|
|
31,475
|
|
|
40,211
|
|
|
29,469
|
|
|
(8,736
|
)
|
|
(22
|
)
|
|
10,742
|
|
|
36
|
|
|||||
Total Other
|
|
$
|
52,710
|
|
|
$
|
56,507
|
|
|
$
|
53,812
|
|
|
$
|
(3,797
|
)
|
|
(7
|
)%
|
|
$
|
2,695
|
|
|
5
|
%
|
Total Non-Interest Income
|
|
$
|
356,150
|
|
|
$
|
319,506
|
|
|
$
|
325,430
|
|
|
$
|
36,644
|
|
|
11
|
%
|
|
$
|
(5,924
|
)
|
|
(2
|
)%
|
|
62
|
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Retail originations
|
|
$
|
2,412,232
|
|
|
$
|
3,142,824
|
|
|
$
|
4,020,788
|
|
Correspondent originations
|
|
848,997
|
|
|
549,261
|
|
|
365,551
|
|
|||
Veterans First originations
|
|
694,209
|
|
|
—
|
|
|
—
|
|
|||
(A) Total originations
|
|
$
|
3,955,438
|
|
|
$
|
3,692,085
|
|
|
$
|
4,386,339
|
|
|
|
|
|
|
|
|
||||||
Purchases as a percentage of originations
|
|
75
|
%
|
|
75
|
%
|
|
58
|
%
|
|||
Refinances as a percentage of originations
|
|
25
|
|
|
25
|
|
|
42
|
|
|||
Total
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|||
|
|
|
|
|
|
|
||||||
Production Margin:
|
|
|
|
|
|
|
||||||
(B) Production revenue
(1)
|
|
$
|
92,250
|
|
|
$
|
90,458
|
|
|
$
|
113,360
|
|
Production margin (B/A)
|
|
2.33
|
%
|
|
2.45
|
%
|
|
2.58
|
%
|
|||
|
|
|
|
|
|
|
||||||
Mortgage Servicing:
|
|
|
|
|
|
|
||||||
(C) Loans serviced for others
|
|
$
|
6,545,870
|
|
|
$
|
2,929,133
|
|
|
$
|
1,784,760
|
|
(D) MSRs, at fair value
|
|
75,183
|
|
|
33,676
|
|
|
19,103
|
|
|||
Percentage of MSRs to loans serviced for others (D/C)
|
|
1.15
|
%
|
|
1.15
|
%
|
|
1.07
|
%
|
|||
|
|
|
|
|
|
|
||||||
Components of Mortgage Banking Revenue:
|
|
|
|
|
|
|
||||||
Production revenue
|
|
$
|
92,250
|
|
|
90,458
|
|
|
$
|
113,360
|
|
|
MSR - current period capitalization
|
|
33,071
|
|
|
18,341
|
|
|
13,091
|
|
|||
MSR - collection of expected cash flow - paydown
(2)
|
|
(1,910
|
)
|
|
—
|
|
|
—
|
|
|||
MSR - collection of expected cash flow - payoffs
|
|
(3,129
|
)
|
|
(2,595
|
)
|
|
(2,325
|
)
|
|||
MSR - changes in fair value model assumptions
|
|
(331
|
)
|
|
(1,173
|
)
|
|
(755
|
)
|
|||
Servicing income
|
|
15,268
|
|
|
6,417
|
|
|
3,329
|
|
|||
Other
|
|
1,771
|
|
|
2,024
|
|
|
2,043
|
|
|||
Total mortgage banking revenue
|
|
$
|
136,990
|
|
|
$
|
113,472
|
|
|
$
|
128,743
|
|
(1)
|
Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, processing and other related activities, and excludes servicing fees, changes in fair value of servicing rights and changes to the mortgage recourse obligation.
|
(2)
|
Change in MSR value due to collection of expected cash flows from paydowns and payoffs in 2017 and 2016 is combined and shown in total in the payoff line. The component detail is not available for 2017 or 2016.
|
|
63
|
|
|
|
|
|
64
|
|
|
|
|
|
|
Years ended December 31,
|
|
2018 compared to 2017
|
|
2017 compared to 2016
|
||||||||||||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
||||||||||||
Salaries and employee benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries
|
|
$
|
266,563
|
|
|
$
|
226,151
|
|
|
$
|
210,623
|
|
|
$
|
40,412
|
|
|
18
|
%
|
|
$
|
15,528
|
|
|
7
|
%
|
Commissions and incentive compensation
|
|
135,558
|
|
|
133,511
|
|
|
128,390
|
|
|
2,047
|
|
|
2
|
|
|
5,121
|
|
|
4
|
|
|||||
Benefits
|
|
77,956
|
|
|
70,416
|
|
|
66,145
|
|
|
7,540
|
|
|
11
|
|
|
4,271
|
|
|
6
|
|
|||||
Total salaries and employee benefits
|
|
$
|
480,077
|
|
|
$
|
430,078
|
|
|
$
|
405,158
|
|
|
$
|
49,999
|
|
|
12
|
%
|
|
$
|
24,920
|
|
|
6
|
%
|
Equipment
|
|
42,949
|
|
|
38,358
|
|
|
37,055
|
|
|
4,591
|
|
|
12
|
|
|
1,303
|
|
|
4
|
|
|||||
Operating lease equipment depreciation
|
|
29,305
|
|
|
24,107
|
|
|
13,259
|
|
|
5,198
|
|
|
22
|
|
|
10,848
|
|
|
82
|
|
|||||
Occupancy, net
|
|
57,814
|
|
|
52,920
|
|
|
50,912
|
|
|
4,894
|
|
|
9
|
|
|
2,008
|
|
|
4
|
|
|||||
Data processing
|
|
35,027
|
|
|
31,495
|
|
|
28,776
|
|
|
3,532
|
|
|
11
|
|
|
2,719
|
|
|
9
|
|
|||||
Advertising and marketing
|
|
41,140
|
|
|
30,830
|
|
|
24,776
|
|
|
10,310
|
|
|
33
|
|
|
6,054
|
|
|
24
|
|
|||||
Professional fees
|
|
32,306
|
|
|
27,835
|
|
|
20,411
|
|
|
4,471
|
|
|
16
|
|
|
7,424
|
|
|
36
|
|
|||||
Amortization of other intangible assets
|
|
4,571
|
|
|
4,401
|
|
|
4,789
|
|
|
170
|
|
|
4
|
|
|
(388
|
)
|
|
(8
|
)
|
|||||
FDIC insurance
|
|
17,209
|
|
|
16,231
|
|
|
16,065
|
|
|
978
|
|
|
6
|
|
|
166
|
|
|
1
|
|
|||||
OREO expenses, net
|
|
6,120
|
|
|
3,593
|
|
|
5,187
|
|
|
2,527
|
|
|
70
|
|
|
(1,594
|
)
|
|
(31
|
)
|
|||||
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commissions — 3rd party brokers
|
|
4,264
|
|
|
4,178
|
|
|
5,161
|
|
|
86
|
|
|
2
|
|
|
(983
|
)
|
|
(19
|
)
|
|||||
Postage
|
|
8,685
|
|
|
6,763
|
|
|
7,184
|
|
|
1,922
|
|
|
28
|
|
|
(421
|
)
|
|
(6
|
)
|
|||||
Miscellaneous
|
|
66,621
|
|
|
61,028
|
|
|
62,952
|
|
|
5,593
|
|
|
9
|
|
|
(1,924
|
)
|
|
(3
|
)
|
|||||
Total other
|
|
$
|
79,570
|
|
|
$
|
71,969
|
|
|
$
|
75,297
|
|
|
$
|
7,601
|
|
|
11
|
%
|
|
$
|
(3,328
|
)
|
|
(4
|
)%
|
Total Non-Interest Expense
|
|
$
|
826,088
|
|
|
$
|
731,817
|
|
|
$
|
681,685
|
|
|
$
|
94,271
|
|
|
13
|
%
|
|
$
|
50,132
|
|
|
7
|
%
|
|
65
|
|
|
|
|
|
66
|
|
|
|
|
|
67
|
|
|
|
|
|
|
Years Ended December 31,
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
(Dollars in thousands)
|
|
Balance
|
|
Percent
|
|
Balance
|
|
Percent
|
|
Balance
|
|
Percent
|
|||||||||
Mortgage loans held-for-sale
|
|
$
|
332,863
|
|
|
1
|
%
|
|
$
|
319,147
|
|
|
1
|
%
|
|
$
|
418,255
|
|
|
2
|
%
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
|
7,223,368
|
|
|
27
|
|
|
6,241,253
|
|
|
26
|
|
|
5,268,454
|
|
|
24
|
|
|||
Commercial real estate
|
|
6,655,352
|
|
|
25
|
|
|
6,363,002
|
|
|
26
|
|
|
5,835,480
|
|
|
26
|
|
|||
Home equity
|
|
602,258
|
|
|
2
|
|
|
691,629
|
|
|
3
|
|
|
759,615
|
|
|
3
|
|
|||
Residential real estate
|
|
849,766
|
|
|
3
|
|
|
763,863
|
|
|
3
|
|
|
647,421
|
|
|
3
|
|
|||
Premium finance receivables
|
|
7,035,390
|
|
|
26
|
|
|
6,281,896
|
|
|
26
|
|
|
5,563,139
|
|
|
25
|
|
|||
Other loans
|
|
134,348
|
|
|
1
|
|
|
128,156
|
|
|
1
|
|
|
135,897
|
|
|
1
|
|
|||
Total loans, net of unearned income excluding covered loans
(1)
|
|
$
|
22,500,482
|
|
|
84
|
%
|
|
$
|
20,469,799
|
|
|
85
|
%
|
|
$
|
18,210,006
|
|
|
82
|
%
|
Covered loans
|
|
—
|
|
|
—
|
|
|
40,665
|
|
|
—
|
|
|
102,948
|
|
|
—
|
|
|||
Total average loans
(1)
|
|
$
|
22,500,482
|
|
|
84
|
%
|
|
$
|
20,510,464
|
|
|
85
|
%
|
|
$
|
18,312,954
|
|
|
82
|
%
|
Liquidity management assets
(2)
|
|
$
|
4,035,907
|
|
|
15
|
%
|
|
$
|
3,535,613
|
|
|
14
|
%
|
|
$
|
3,562,480
|
|
|
16
|
%
|
Other earning assets
(3)
|
|
20,681
|
|
|
—
|
|
|
25,951
|
|
|
—
|
|
|
28,992
|
|
|
—
|
|
|||
Total average earning assets
|
|
$
|
26,889,933
|
|
|
100
|
%
|
|
$
|
24,391,175
|
|
|
100
|
%
|
|
$
|
22,322,681
|
|
|
100
|
%
|
Total average assets
|
|
$
|
29,028,420
|
|
|
|
|
$
|
26,369,702
|
|
|
|
|
$
|
24,292,231
|
|
|
|
|||
Total average earning assets to total average assets
|
|
|
|
93
|
%
|
|
|
|
92
|
%
|
|
|
|
92
|
%
|
(1)
|
Includes non-accrual loans
|
(2)
|
Liquidity management assets include investment securities, other securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements
|
(3)
|
Other earning assets include brokerage customer receivables and trading account securities
|
|
68
|
|
|
|
|
|
69
|
|
|
|
|
|
|
Years Ended December 31,
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
(Dollars in thousands)
|
|
Balance
|
|
Percent
|
|
Balance
|
|
Percent
|
|
Balance
|
|
Percent
|
|||||||||
Non-interest bearing deposits
|
|
$
|
6,545,251
|
|
|
28
|
%
|
|
$
|
6,182,048
|
|
|
28
|
%
|
|
$
|
5,409,923
|
|
|
27
|
%
|
NOW and interest bearing demand deposits
|
|
2,436,791
|
|
|
10
|
|
|
2,402,254
|
|
|
11
|
|
|
2,438,051
|
|
|
12
|
|
|||
Wealth management deposits
|
|
2,356,145
|
|
|
10
|
|
|
2,125,177
|
|
|
10
|
|
|
1,877,020
|
|
|
9
|
|
|||
Money market accounts
|
|
5,105,244
|
|
|
21
|
|
|
4,482,137
|
|
|
20
|
|
|
4,343,332
|
|
|
23
|
|
|||
Savings accounts
|
|
2,684,661
|
|
|
11
|
|
|
2,471,663
|
|
|
11
|
|
|
1,887,748
|
|
|
9
|
|
|||
Time certificates of deposit
|
|
4,872,590
|
|
|
20
|
|
|
4,423,067
|
|
|
20
|
|
|
4,074,735
|
|
|
20
|
|
|||
Total average deposits
|
|
$
|
24,000,682
|
|
|
100
|
%
|
|
$
|
22,086,346
|
|
|
100
|
%
|
|
$
|
20,030,809
|
|
|
100
|
%
|
|
|
Years Ended December 31,
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
(Dollars in thousands)
|
|
Balance
|
|
Percent
|
|
Balance
|
|
Percent
|
|
Balance
|
|
Percent
|
|||||||||
Wintrust Bank
|
|
$
|
4,549,385
|
|
|
19
|
%
|
|
$
|
3,848,012
|
|
|
17
|
%
|
|
$
|
3,410,462
|
|
|
16
|
%
|
Lake Forest Bank
|
|
2,627,628
|
|
|
11
|
|
|
2,494,951
|
|
|
11
|
|
|
2,242,961
|
|
|
11
|
|
|||
Hinsdale Bank
|
|
1,945,538
|
|
|
8
|
|
|
1,761,825
|
|
|
8
|
|
|
1,646,559
|
|
|
8
|
|
|||
Northbrook Bank
|
|
1,835,242
|
|
|
8
|
|
|
1,748,342
|
|
|
8
|
|
|
1,522,177
|
|
|
8
|
|
|||
Town Bank
|
|
1,675,926
|
|
|
7
|
|
|
1,599,066
|
|
|
8
|
|
|
1,530,953
|
|
|
8
|
|
|||
Barrington Bank
|
|
1,552,299
|
|
|
6
|
|
|
1,435,608
|
|
|
7
|
|
|
1,331,023
|
|
|
7
|
|
|||
Wheaton Bank
|
|
1,311,340
|
|
|
6
|
|
|
1,183,185
|
|
|
5
|
|
|
1,077,386
|
|
|
5
|
|
|||
Old Plank Trail Bank
|
|
1,283,627
|
|
|
5
|
|
|
1,215,786
|
|
|
6
|
|
|
1,119,326
|
|
|
6
|
|
|||
Libertyville Bank
|
|
1,244,853
|
|
|
5
|
|
|
1,140,095
|
|
|
5
|
|
|
1,069,408
|
|
|
5
|
|
|||
Village Bank
|
|
1,234,009
|
|
|
5
|
|
|
1,195,933
|
|
|
5
|
|
|
1,116,247
|
|
|
6
|
|
|||
Beverly Bank
|
|
1,070,510
|
|
|
4
|
|
|
959,179
|
|
|
4
|
|
|
845,576
|
|
|
4
|
|
|||
State Bank of the Lakes
|
|
956,470
|
|
|
4
|
|
|
882,684
|
|
|
4
|
|
|
823,940
|
|
|
4
|
|
|||
St. Charles Bank
|
|
941,276
|
|
|
4
|
|
|
906,791
|
|
|
4
|
|
|
726,660
|
|
|
4
|
|
|||
Schaumburg Bank
|
|
925,259
|
|
|
4
|
|
|
912,886
|
|
|
4
|
|
|
802,919
|
|
|
4
|
|
|||
Crystal Lake Bank
|
|
847,320
|
|
|
4
|
|
|
802,003
|
|
|
4
|
|
|
765,212
|
|
|
4
|
|
|||
Total deposits
|
|
$
|
24,000,682
|
|
|
100
|
%
|
|
$
|
22,086,346
|
|
|
100
|
%
|
|
$
|
20,030,809
|
|
|
100
|
%
|
Percentage increase from prior year
|
|
|
|
9
|
%
|
|
|
|
10
|
%
|
|
|
|
15
|
%
|
|
70
|
|
|
|
|
|
|
Years Ended December 31,
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
Average
|
|
Percent
|
|
Average
|
|
Percent
|
|
Average
|
|
Percent
|
|||||||||
(Dollars in thousands)
|
|
Balance
|
|
of Total
|
|
Balance
|
|
of Total
|
|
Balance
|
|
of Total
|
|||||||||
Federal Home Loan Bank advances
|
|
$
|
713,539
|
|
|
51
|
%
|
|
$
|
380,412
|
|
|
37
|
%
|
|
$
|
653,529
|
|
|
50
|
%
|
Subordinated notes
|
|
139,140
|
|
|
10
|
|
|
139,022
|
|
|
13
|
|
|
138,912
|
|
|
11
|
|
|||
Notes payable
|
|
67,176
|
|
|
5
|
|
|
46,744
|
|
|
5
|
|
|
61,738
|
|
|
5
|
|
|||
Short-term borrowings
|
|
21,270
|
|
|
2
|
|
|
38,756
|
|
|
4
|
|
|
41,852
|
|
|
3
|
|
|||
Other
|
|
48,333
|
|
|
3
|
|
|
33,964
|
|
|
3
|
|
|
18,555
|
|
|
1
|
|
|||
Secured borrowings
|
|
152,836
|
|
|
11
|
|
|
135,672
|
|
|
13
|
|
|
126,608
|
|
|
10
|
|
|||
Total other borrowings
|
|
289,615
|
|
|
21
|
|
|
255,136
|
|
|
25
|
|
|
248,753
|
|
|
19
|
|
|||
Junior subordinated debentures
|
|
253,566
|
|
|
18
|
|
|
253,566
|
|
|
25
|
|
|
254,591
|
|
|
20
|
|
|||
Total other funding sources
|
|
$
|
1,395,860
|
|
|
100
|
%
|
|
$
|
1,028,136
|
|
|
100
|
%
|
|
$
|
1,295,785
|
|
|
100
|
%
|
|
71
|
|
|
|
|
|
72
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||
|
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|||||||||||||||
Commercial
|
|
$
|
7,828,538
|
|
|
33
|
%
|
|
$
|
6,787,677
|
|
|
31
|
%
|
|
$
|
6,005,422
|
|
|
30
|
%
|
|
$
|
4,713,909
|
|
|
27
|
%
|
|
$
|
3,924,394
|
|
|
26
|
%
|
Commercial real estate
|
|
6,933,252
|
|
|
29
|
|
|
6,580,618
|
|
|
30
|
|
|
6,196,087
|
|
|
31
|
|
|
5,529,289
|
|
|
32
|
|
|
4,505,753
|
|
|
31
|
|
|||||
Home equity
|
|
552,343
|
|
|
2
|
|
|
663,045
|
|
|
3
|
|
|
725,793
|
|
|
4
|
|
|
784,675
|
|
|
5
|
|
|
716,293
|
|
|
5
|
|
|||||
Residential real estate
|
|
1,002,464
|
|
|
4
|
|
|
832,120
|
|
|
4
|
|
|
705,221
|
|
|
4
|
|
|
607,451
|
|
|
3
|
|
|
483,542
|
|
|
3
|
|
|||||
Premium finance receivables—commercial
|
|
2,841,659
|
|
|
12
|
|
|
2,634,565
|
|
|
12
|
|
|
2,478,581
|
|
|
12
|
|
|
2,374,921
|
|
|
14
|
|
|
2,350,833
|
|
|
16
|
|
|||||
Premium finance receivables—life insurance
|
|
4,541,794
|
|
|
19
|
|
|
4,035,059
|
|
|
19
|
|
|
3,470,027
|
|
|
18
|
|
|
2,961,496
|
|
|
17
|
|
|
2,277,571
|
|
|
16
|
|
|||||
Consumer and other
|
|
120,641
|
|
|
1
|
|
|
107,713
|
|
|
1
|
|
|
122,041
|
|
|
1
|
|
|
146,376
|
|
|
1
|
|
|
151,012
|
|
|
1
|
|
|||||
Total loans, net of unearned
income, excluding covered loans |
|
$
|
23,820,691
|
|
|
100
|
%
|
|
$
|
21,640,797
|
|
|
100
|
%
|
|
$
|
19,703,172
|
|
|
100
|
%
|
|
$
|
17,118,117
|
|
|
99
|
%
|
|
$
|
14,409,398
|
|
|
98
|
%
|
Covered loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58,145
|
|
|
—
|
|
|
148,673
|
|
|
1
|
|
|
226,709
|
|
|
2
|
|
|||||
Total loans
|
|
$
|
23,820,691
|
|
|
100
|
%
|
|
$
|
21,640,797
|
|
|
100
|
%
|
|
$
|
19,761,317
|
|
|
100
|
%
|
|
$
|
17,266,790
|
|
|
100
|
%
|
|
$
|
14,636,107
|
|
|
100
|
%
|
|
73
|
|
|
|
|
|
|
As of December 31, 2018
|
|
As of December 31, 2017
|
||||||||||||||||||
(Dollars in thousands)
|
|
Balance
|
|
% of
Total
Balance
|
|
Allowance
For Loan
Losses
Allocation
|
|
Balance
|
|
% of
Total Balance |
|
Allowance
For Loan Losses Allocation |
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, industrial and other
|
|
$
|
5,120,096
|
|
|
34.6
|
%
|
|
$
|
46,586
|
|
|
$
|
4,342,505
|
|
|
32.5
|
%
|
|
$
|
39,901
|
|
Franchise
|
|
948,979
|
|
|
6.4
|
|
|
8,919
|
|
|
847,597
|
|
|
6.3
|
|
|
6,451
|
|
||||
Mortgage warehouse lines of credit
|
|
144,199
|
|
|
1.0
|
|
|
1,162
|
|
|
194,523
|
|
|
1.5
|
|
|
1,454
|
|
||||
Asset-based lending
|
|
1,026,056
|
|
|
7.0
|
|
|
9,138
|
|
|
980,466
|
|
|
7.3
|
|
|
8,236
|
|
||||
Leases
|
|
565,680
|
|
|
3.8
|
|
|
1,502
|
|
|
413,172
|
|
|
3.1
|
|
|
1,242
|
|
||||
PCI - commercial loans
(1)
|
|
23,528
|
|
|
0.2
|
|
|
519
|
|
|
9,414
|
|
|
0.1
|
|
|
527
|
|
||||
Total commercial
|
|
$
|
7,828,538
|
|
|
53.0
|
%
|
|
$
|
67,826
|
|
|
$
|
6,787,677
|
|
|
50.8
|
%
|
|
$
|
57,811
|
|
Commercial Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
|
$
|
760,824
|
|
|
5.2
|
%
|
|
$
|
8,999
|
|
|
$
|
745,514
|
|
|
5.6
|
%
|
|
$
|
8,728
|
|
Land
|
|
141,481
|
|
|
1.0
|
|
|
3,953
|
|
|
126,484
|
|
|
0.9
|
|
|
3,838
|
|
||||
Office
|
|
939,322
|
|
|
6.4
|
|
|
6,239
|
|
|
894,833
|
|
|
6.7
|
|
|
5,736
|
|
||||
Industrial
|
|
902,248
|
|
|
6.1
|
|
|
6,088
|
|
|
883,019
|
|
|
6.6
|
|
|
5,767
|
|
||||
Retail
|
|
892,478
|
|
|
6.0
|
|
|
9,338
|
|
|
951,527
|
|
|
7.1
|
|
|
7,389
|
|
||||
Multi-family
|
|
976,560
|
|
|
6.6
|
|
|
9,395
|
|
|
915,644
|
|
|
6.8
|
|
|
9,509
|
|
||||
Mixed use and other
|
|
2,205,195
|
|
|
14.9
|
|
|
16,210
|
|
|
1,935,705
|
|
|
14.5
|
|
|
13,879
|
|
||||
PCI - commercial real estate
(1)
|
|
115,144
|
|
|
0.8
|
|
|
45
|
|
|
127,892
|
|
|
1.0
|
|
|
381
|
|
||||
Total commercial real estate
|
|
$
|
6,933,252
|
|
|
47.0
|
%
|
|
$
|
60,267
|
|
|
$
|
6,580,618
|
|
|
49.2
|
%
|
|
$
|
55,227
|
|
Total commercial and commercial real estate
|
|
$
|
14,761,790
|
|
|
100.0
|
%
|
|
$
|
128,093
|
|
|
$
|
13,368,295
|
|
|
100.0
|
%
|
|
$
|
113,038
|
|
Commercial real estate—collateral location by state:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Illinois
|
|
$
|
5,336,454
|
|
|
77.0
|
%
|
|
|
|
$
|
5,128,434
|
|
|
78.0
|
%
|
|
|
||||
Wisconsin
|
|
684,425
|
|
|
9.9
|
|
|
|
|
712,835
|
|
|
10.8
|
|
|
|
||||||
Total primary markets
|
|
$
|
6,020,879
|
|
|
86.9
|
%
|
|
|
|
$
|
5,841,269
|
|
|
88.8
|
%
|
|
|
||||
Indiana
|
|
169,817
|
|
|
2.4
|
|
|
|
|
138,316
|
|
|
2.1
|
|
|
|
||||||
Florida
|
|
52,237
|
|
|
0.8
|
|
|
|
|
69,427
|
|
|
1.1
|
|
|
|
||||||
Arizona
|
|
61,893
|
|
|
0.9
|
|
|
|
|
58,594
|
|
|
0.9
|
|
|
|
||||||
Michigan
|
|
40,110
|
|
|
0.6
|
|
|
|
|
47,167
|
|
|
0.7
|
|
|
|
||||||
California
|
|
68,133
|
|
|
1.0
|
|
|
|
|
68,478
|
|
|
1.0
|
|
|
|
||||||
Other (no individual state greater than 0.7%)
|
|
520,183
|
|
|
7.4
|
|
|
|
|
357,367
|
|
|
5.4
|
|
|
|
||||||
Total
|
|
$
|
6,933,252
|
|
|
100.0
|
%
|
|
|
|
$
|
6,580,618
|
|
|
100.0
|
%
|
|
|
(1)
|
PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with Accounting Standards Codification ("ASC") 310-30. Loan agings are based upon contractually required payments.
|
|
74
|
|
|
|
|
|
75
|
|
|
|
|
|
76
|
|
|
|
|
(Dollars in thousands)
|
|
One year or
less
|
|
From one to
five years
|
|
Over five
years
|
|
Total
|
||||||||
Commercial
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
|
$
|
154,368
|
|
|
$
|
1,105,414
|
|
|
$
|
665,595
|
|
|
$
|
1,925,377
|
|
Variable rate
|
|
5,896,481
|
|
|
6,531
|
|
|
149
|
|
|
5,903,161
|
|
||||
Total commercial
|
|
$
|
6,050,849
|
|
|
$
|
1,111,945
|
|
|
$
|
665,744
|
|
|
$
|
7,828,538
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
|
$
|
369,120
|
|
|
$
|
1,930,892
|
|
|
$
|
315,343
|
|
|
$
|
2,615,355
|
|
Variable rate
|
|
4,288,293
|
|
|
29,455
|
|
|
149
|
|
|
4,317,897
|
|
||||
Total commercial real estate
|
|
$
|
4,657,413
|
|
|
$
|
1,960,347
|
|
|
$
|
315,492
|
|
|
$
|
6,933,252
|
|
Home equity
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
|
$
|
11,712
|
|
|
$
|
15,125
|
|
|
$
|
18,543
|
|
|
$
|
45,380
|
|
Variable rate
|
|
506,963
|
|
|
—
|
|
|
—
|
|
|
506,963
|
|
||||
Total home equity
|
|
$
|
518,675
|
|
|
$
|
15,125
|
|
|
$
|
18,543
|
|
|
$
|
552,343
|
|
Residential real estate
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
|
$
|
30,724
|
|
|
$
|
22,568
|
|
|
$
|
229,433
|
|
|
$
|
282,725
|
|
Variable rate
|
|
55,329
|
|
|
303,383
|
|
|
361,027
|
|
|
719,739
|
|
||||
Total residential real estate
|
|
$
|
86,053
|
|
|
$
|
325,951
|
|
|
$
|
590,460
|
|
|
$
|
1,002,464
|
|
Premium finance receivables - commercial
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
|
$
|
2,762,211
|
|
|
$
|
79,448
|
|
|
$
|
—
|
|
|
$
|
2,841,659
|
|
Variable rate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total premium finance receivables - commercial
|
|
$
|
2,762,211
|
|
|
$
|
79,448
|
|
|
$
|
—
|
|
|
$
|
2,841,659
|
|
Premium finance receivables - life insurance
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
|
$
|
15,303
|
|
|
$
|
10,977
|
|
|
$
|
3,690
|
|
|
$
|
29,970
|
|
Variable rate
|
|
4,511,824
|
|
|
—
|
|
|
—
|
|
|
4,511,824
|
|
||||
Total premium finance receivables - life insurance
|
|
$
|
4,527,127
|
|
|
$
|
10,977
|
|
|
$
|
3,690
|
|
|
$
|
4,541,794
|
|
Consumer and other
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
|
$
|
75,263
|
|
|
$
|
10,312
|
|
|
$
|
2,176
|
|
|
$
|
87,751
|
|
Variable rate
|
|
32,848
|
|
|
42
|
|
|
—
|
|
|
32,890
|
|
||||
Total consumer and other
|
|
$
|
108,111
|
|
|
$
|
10,354
|
|
|
$
|
2,176
|
|
|
$
|
120,641
|
|
Total per category
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
|
$
|
3,418,701
|
|
|
$
|
3,174,736
|
|
|
$
|
1,234,780
|
|
|
$
|
7,828,217
|
|
Variable rate
|
|
15,291,738
|
|
|
339,411
|
|
|
361,325
|
|
|
15,992,474
|
|
||||
Total loans, net of unearned income, excluding covered loans
|
|
$
|
18,710,439
|
|
|
$
|
3,514,147
|
|
|
$
|
1,596,105
|
|
|
$
|
23,820,691
|
|
Variable Rate Loan Pricing by Index:
|
|
|
|
|
|
|
|
|
||||||||
Prime
|
|
$
|
2,480,764
|
|
|
|
|
|
|
|
||||||
One- month LIBOR
|
|
8,076,230
|
|
|
|
|
|
|
|
|||||||
Three- month LIBOR
|
|
458,994
|
|
|
|
|
|
|
|
|||||||
Twelve- month LIBOR
|
|
4,741,121
|
|
|
|
|
|
|
|
|||||||
Other
|
|
235,365
|
|
|
|
|
|
|
|
|||||||
Total variable rate
|
|
$
|
15,992,474
|
|
|
|
|
|
|
|
|
77
|
|
|
|
|
|
|
|
|
|
1 Rating
|
|
—
|
|
Minimal Risk (Loss Potential — none or extremely low) (Superior asset quality, excellent liquidity, minimal leverage)
|
|
|
|
||
2 Rating
|
|
—
|
|
Modest Risk (Loss Potential demonstrably low) (Very good asset quality and liquidity, strong leverage capacity)
|
|
|
|
||
3 Rating
|
|
—
|
|
Average Risk (Loss Potential low but no longer refutable) (Mostly satisfactory asset quality and liquidity, good leverage capacity)
|
|
|
|
||
4 Rating
|
|
—
|
|
Above Average Risk (Loss Potential variable, but some potential for deterioration) (Acceptable asset quality, little excess liquidity, modest leverage capacity)
|
|
|
|
||
5 Rating
|
|
—
|
|
Management Attention Risk (Loss Potential moderate if corrective action not taken) (Generally acceptable asset quality, somewhat strained liquidity, minimal leverage capacity)
|
|
|
|
||
6 Rating
|
|
—
|
|
Special Mention (Loss Potential moderate if corrective action not taken) (Assets in this category are currently protected, potentially weak, but not to the point of substandard classification)
|
|
|
|
||
7 Rating
|
|
—
|
|
Substandard Accrual (Loss Potential distinct possibility that the bank may sustain some loss, but no discernible impairment) (Must have well defined weaknesses that jeopardize the liquidation of the debt)
|
|
|
|
||
8 Rating
|
|
—
|
|
Substandard Non-accrual (Loss Potential well documented probability of loss, including potential impairment) (Must have well defined weaknesses that jeopardize the liquidation of the debt)
|
|
|
|
||
9 Rating
|
|
—
|
|
Doubtful (Loss Potential extremely high) (These assets have all the weaknesses in those classified “substandard” with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly improbable)
|
|
|
|
||
10 Rating
|
|
—
|
|
Loss (fully charged-off) (Loans in this category are considered fully uncollectible.)
|
|
78
|
|
|
|
|
|
79
|
|
|
|
|
(Dollars in thousands)
|
|
2018
|
|
2017
(3)
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Loans past due greater than 90 days and still accruing
(1)
:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
174
|
|
|
$
|
541
|
|
|
$
|
474
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential real estate
|
|
—
|
|
|
3,278
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Premium finance receivables – commercial
|
|
7,799
|
|
|
9,242
|
|
|
7,962
|
|
|
10,294
|
|
|
7,665
|
|
|||||
Premium finance receivables – life insurance
|
|
—
|
|
|
—
|
|
|
3,717
|
|
|
—
|
|
|
—
|
|
|||||
Consumer and other
|
|
109
|
|
|
40
|
|
|
144
|
|
|
150
|
|
|
119
|
|
|||||
Total loans past due greater than 90 days and still accruing
|
|
$
|
7,908
|
|
|
$
|
12,560
|
|
|
$
|
11,997
|
|
|
$
|
10,985
|
|
|
$
|
8,258
|
|
Non-accrual loans
(2)
:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
50,984
|
|
|
15,696
|
|
|
15,875
|
|
|
12,712
|
|
|
9,157
|
|
|||||
Commercial real estate
|
|
19,129
|
|
|
22,048
|
|
|
21,924
|
|
|
26,645
|
|
|
26,605
|
|
|||||
Home equity
|
|
7,147
|
|
|
8,978
|
|
|
9,761
|
|
|
6,848
|
|
|
6,174
|
|
|||||
Residential real estate
|
|
16,383
|
|
|
17,977
|
|
|
12,749
|
|
|
12,043
|
|
|
15,502
|
|
|||||
Premium finance receivables – commercial
|
|
11,335
|
|
|
12,163
|
|
|
14,709
|
|
|
14,561
|
|
|
12,705
|
|
|||||
Premium finance receivables – life insurance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer and other
|
|
348
|
|
|
740
|
|
|
439
|
|
|
263
|
|
|
277
|
|
|||||
Total non-accrual loans
|
|
$
|
105,326
|
|
|
$
|
77,602
|
|
|
$
|
75,457
|
|
|
$
|
73,072
|
|
|
$
|
70,420
|
|
Total non-performing loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
$
|
50,984
|
|
|
$
|
15,696
|
|
|
$
|
16,049
|
|
|
$
|
13,253
|
|
|
$
|
9,631
|
|
Commercial real estate
|
|
19,129
|
|
|
22,048
|
|
|
21,924
|
|
|
26,645
|
|
|
26,605
|
|
|||||
Home equity
|
|
7,147
|
|
|
8,978
|
|
|
9,761
|
|
|
6,848
|
|
|
6,174
|
|
|||||
Residential real estate
|
|
16,383
|
|
|
21,255
|
|
|
12,749
|
|
|
12,043
|
|
|
15,502
|
|
|||||
Premium finance receivables – commercial
|
|
19,134
|
|
|
21,405
|
|
|
22,671
|
|
|
24,855
|
|
|
20,370
|
|
|||||
Premium finance receivables – life insurance
|
|
—
|
|
|
—
|
|
|
3,717
|
|
|
—
|
|
|
—
|
|
|||||
Consumer and other
|
|
457
|
|
|
780
|
|
|
583
|
|
|
413
|
|
|
395
|
|
|||||
Total non-performing loans
|
|
$
|
113,234
|
|
|
$
|
90,162
|
|
|
$
|
87,454
|
|
|
$
|
84,057
|
|
|
$
|
78,677
|
|
Other real estate owned
|
|
11,968
|
|
|
20,244
|
|
|
17,699
|
|
|
26,849
|
|
|
36,419
|
|
|||||
Other real estate owned – from acquisitions
|
|
12,852
|
|
|
20,402
|
|
|
22,583
|
|
|
17,096
|
|
|
9,223
|
|
|||||
Other repossessed assets
|
|
280
|
|
|
153
|
|
|
581
|
|
|
174
|
|
|
303
|
|
|||||
Total non-performing assets
|
|
$
|
138,334
|
|
|
$
|
130,961
|
|
|
$
|
128,317
|
|
|
$
|
128,176
|
|
|
$
|
124,622
|
|
TDRs performing under the contractual terms of the loan agreement
|
|
$
|
33,281
|
|
|
$
|
39,683
|
|
|
$
|
29,911
|
|
|
$
|
42,744
|
|
|
$
|
69,697
|
|
Total non-performing loans by category as a percent of
its own respective category’s period-end balance:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
0.65
|
%
|
|
0.23
|
%
|
|
0.27
|
%
|
|
0.28
|
%
|
|
0.25
|
%
|
|||||
Commercial real estate
|
|
0.28
|
|
|
0.34
|
|
|
0.35
|
|
|
0.48
|
|
|
0.59
|
|
|||||
Home equity
|
|
1.29
|
|
|
1.35
|
|
|
1.34
|
|
|
0.87
|
|
|
0.86
|
|
|||||
Residential real estate
|
|
1.63
|
|
|
2.55
|
|
|
1.81
|
|
|
1.98
|
|
|
3.21
|
|
|||||
Premium finance receivables – commercial
|
|
0.67
|
|
|
0.81
|
|
|
0.91
|
|
|
1.05
|
|
|
0.87
|
|
|||||
Premium finance receivables – life insurance
|
|
—
|
|
|
—
|
|
|
0.11
|
|
|
—
|
|
|
—
|
|
|||||
Consumer and other
|
|
0.38
|
|
|
0.72
|
|
|
0.48
|
|
|
0.28
|
|
|
0.26
|
|
|||||
Total non-performing loans
|
|
0.48
|
%
|
|
0.42
|
%
|
|
0.44
|
%
|
|
0.49
|
%
|
|
0.55
|
%
|
|||||
Total non-performing assets, as a percentage
of total assets
|
|
0.44
|
%
|
|
0.47
|
%
|
|
0.50
|
%
|
|
0.56
|
%
|
|
0.62
|
%
|
|||||
Allowance for loan losses as a percentage of
total non-performing loans
|
|
134.92
|
%
|
|
152.95
|
%
|
|
139.83
|
%
|
|
125.39
|
%
|
|
116.56
|
%
|
(1)
|
As of the dates shown, no TDRs were past due greater than 90 days and still accruing interest.
|
(2)
|
Non-accrual loans included TDRs totaling $32.8 million, $10.1 million, $11.8 million, $9.1 million and $12.6 million as of the years ended
2018
,
2017
,
2016
,
2015
and
2014
, respectively.
|
(3)
|
Includes
$2.6 million
of non-performing loans and
$2.9 million
of other real estate owned reclassified from covered assets as a result of the termination of all existing loss share agreements with the FDIC during the fourth quarter of 2017.
|
|
80
|
|
|
|
|
As of December 31, 2018
(Dollars in thousands)
|
|
Non-
accrual
|
|
90+ days
and still
accruing
|
|
60-89
days past
due
|
|
30-59
days past
due
|
|
Current
|
|
Total Loans
|
||||||||||||
Loan Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial, industrial and other
|
|
$
|
34,298
|
|
|
$
|
—
|
|
|
$
|
1,451
|
|
|
$
|
21,618
|
|
|
$
|
5,062,729
|
|
|
$
|
5,120,096
|
|
Franchise
|
|
16,051
|
|
|
—
|
|
|
—
|
|
|
8,738
|
|
|
924,190
|
|
|
948,979
|
|
||||||
Mortgage warehouse lines of credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
144,199
|
|
|
144,199
|
|
||||||
Asset-based lending
|
|
635
|
|
|
—
|
|
|
200
|
|
|
3,156
|
|
|
1,022,065
|
|
|
1,026,056
|
|
||||||
Leases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,250
|
|
|
564,430
|
|
|
565,680
|
|
||||||
PCI - commercial
(1)
|
|
—
|
|
|
3,313
|
|
|
—
|
|
|
99
|
|
|
20,116
|
|
|
23,528
|
|
||||||
Total commercial
|
|
$
|
50,984
|
|
|
$
|
3,313
|
|
|
$
|
1,651
|
|
|
$
|
34,861
|
|
|
$
|
7,737,729
|
|
|
$
|
7,828,538
|
|
Commercial real-estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
|
1,554
|
|
|
—
|
|
|
—
|
|
|
9,424
|
|
|
749,846
|
|
|
760,824
|
|
||||||
Land
|
|
107
|
|
|
—
|
|
|
170
|
|
|
107
|
|
|
141,097
|
|
|
141,481
|
|
||||||
Office
|
|
3,629
|
|
|
—
|
|
|
877
|
|
|
5,077
|
|
|
929,739
|
|
|
939,322
|
|
||||||
Industrial
|
|
285
|
|
|
—
|
|
|
—
|
|
|
16,596
|
|
|
885,367
|
|
|
902,248
|
|
||||||
Retail
|
|
10,753
|
|
|
—
|
|
|
1,890
|
|
|
1,729
|
|
|
878,106
|
|
|
892,478
|
|
||||||
Multi-family
|
|
311
|
|
|
—
|
|
|
77
|
|
|
5,575
|
|
|
970,597
|
|
|
976,560
|
|
||||||
Mixed use and other
|
|
2,490
|
|
|
—
|
|
|
1,617
|
|
|
8,983
|
|
|
2,192,105
|
|
|
2,205,195
|
|
||||||
PCI - commercial real-estate
(1)
|
|
—
|
|
|
6,241
|
|
|
6,195
|
|
|
4,075
|
|
|
98,633
|
|
|
115,144
|
|
||||||
Total commercial real-estate
|
|
$
|
19,129
|
|
|
$
|
6,241
|
|
|
$
|
10,826
|
|
|
$
|
51,566
|
|
|
$
|
6,845,490
|
|
|
$
|
6,933,252
|
|
Home equity
|
|
7,147
|
|
|
—
|
|
|
131
|
|
|
3,105
|
|
|
541,960
|
|
|
552,343
|
|
||||||
Residential real estate, including PCI
|
|
16,383
|
|
|
1,292
|
|
|
1,692
|
|
|
6,171
|
|
|
976,926
|
|
|
1,002,464
|
|
||||||
Premium finance receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial insurance loans
|
|
11,335
|
|
|
7,799
|
|
|
11,382
|
|
|
15,085
|
|
|
2,796,058
|
|
|
2,841,659
|
|
||||||
Life insurance loans
|
|
—
|
|
|
—
|
|
|
8,407
|
|
|
24,628
|
|
|
4,340,856
|
|
|
4,373,891
|
|
||||||
PCI - life insurance loans
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
167,903
|
|
|
167,903
|
|
||||||
Consumer and other
|
|
348
|
|
|
227
|
|
|
87
|
|
|
733
|
|
|
119,246
|
|
|
120,641
|
|
||||||
Total loans, net of unearned income
|
|
$
|
105,326
|
|
|
$
|
18,872
|
|
|
$
|
34,176
|
|
|
$
|
136,149
|
|
|
$
|
23,526,168
|
|
|
$
|
23,820,691
|
|
As of December 31, 2018
|
|
Non-
accrual
|
|
90+ days
and still
accruing
|
|
60-89
days past
due
|
|
30-59
days past
due
|
|
Current
|
|
Total Loans
|
||||||
Aging as a % of Loan Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial, industrial and other
|
|
0.7
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.4
|
%
|
|
98.9
|
%
|
|
100.0
|
%
|
Franchise
|
|
1.7
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|
97.4
|
|
|
100.0
|
|
Mortgage warehouse lines of credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100.0
|
|
|
100.0
|
|
Asset-based lending
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
99.6
|
|
|
100.0
|
|
Leases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
99.8
|
|
|
100.0
|
|
PCI - commercial
(1)
|
|
—
|
|
|
14.1
|
|
|
—
|
|
|
0.4
|
|
|
85.5
|
|
|
100.0
|
|
Total commercial
|
|
0.7
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.4
|
%
|
|
98.9
|
%
|
|
100.0
|
%
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
|
98.6
|
|
|
100.0
|
|
Land
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
99.7
|
|
|
100.0
|
|
Office
|
|
0.4
|
|
|
—
|
|
|
0.1
|
|
|
0.5
|
|
|
99.0
|
|
|
100.0
|
|
Industrial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
|
98.1
|
|
|
100.0
|
|
Retail
|
|
1.2
|
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|
98.4
|
|
|
100.0
|
|
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
99.4
|
|
|
100.0
|
|
Mixed use and other
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.4
|
|
|
99.4
|
|
|
100.0
|
|
PCI - commercial real-estate
(1)
|
|
—
|
|
|
5.4
|
|
|
5.4
|
|
|
3.5
|
|
|
85.7
|
|
|
100.0
|
|
Total commercial real-estate
|
|
0.3
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
|
0.7
|
%
|
|
98.7
|
%
|
|
100.0
|
%
|
Home equity
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
98.1
|
|
|
100.0
|
|
Residential real estate, including PCI
|
|
1.6
|
|
|
0.1
|
|
|
0.2
|
|
|
0.6
|
|
|
97.5
|
|
|
100.0
|
|
Premium finance receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial insurance loans
|
|
0.4
|
|
|
0.3
|
|
|
0.4
|
|
|
0.5
|
|
|
98.4
|
|
|
100.0
|
|
Life insurance loans
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.5
|
|
|
99.3
|
|
|
100.0
|
|
PCI - life insurance loans
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100.0
|
|
|
100.0
|
|
Consumer and other
|
|
0.3
|
|
|
0.2
|
|
|
0.1
|
|
|
0.6
|
|
|
98.8
|
|
|
100.0
|
|
Total loans, net of unearned income
|
|
0.4
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.6
|
%
|
|
98.8
|
%
|
|
100.0
|
%
|
(1)
|
PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments.
|
|
81
|
|
|
|
|
As of December 31, 2017
(Dollars in thousands)
|
|
Nonaccrual
|
|
90+ days
and still
accruing
|
|
60-89
days past
due
|
|
30-59
days past
due
|
|
Current
|
|
Total Loans
|
||||||||||||
Loan Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial, industrial and other
|
|
$
|
11,260
|
|
|
$
|
—
|
|
|
$
|
3,746
|
|
|
$
|
13,392
|
|
|
$
|
4,314,107
|
|
|
$
|
4,342,505
|
|
Franchise
|
|
2,447
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
845,150
|
|
|
847,597
|
|
||||||
Mortgage warehouse lines of credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,000
|
|
|
190,523
|
|
|
194,523
|
|
||||||
Asset-based lending
|
|
1,550
|
|
|
—
|
|
|
283
|
|
|
10,057
|
|
|
968,576
|
|
|
980,466
|
|
||||||
Leases
|
|
439
|
|
|
—
|
|
|
3
|
|
|
1,958
|
|
|
410,772
|
|
|
413,172
|
|
||||||
PCI - commercial
(1)
|
|
—
|
|
|
877
|
|
|
186
|
|
|
—
|
|
|
8,351
|
|
|
9,414
|
|
||||||
Total commercial
|
|
$
|
15,696
|
|
|
$
|
877
|
|
|
$
|
4,218
|
|
|
$
|
29,407
|
|
|
$
|
6,737,479
|
|
|
$
|
6,787,677
|
|
Commercial real-estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
|
$
|
3,143
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
200
|
|
|
$
|
742,171
|
|
|
$
|
745,514
|
|
Land
|
|
188
|
|
|
—
|
|
|
—
|
|
|
5,156
|
|
|
121,140
|
|
|
126,484
|
|
||||||
Office
|
|
2,438
|
|
|
—
|
|
|
—
|
|
|
4,458
|
|
|
887,937
|
|
|
894,833
|
|
||||||
Industrial
|
|
811
|
|
|
—
|
|
|
—
|
|
|
2,412
|
|
|
879,796
|
|
|
883,019
|
|
||||||
Retail
|
|
12,328
|
|
|
—
|
|
|
668
|
|
|
148
|
|
|
938,383
|
|
|
951,527
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,034
|
|
|
914,610
|
|
|
915,644
|
|
||||||
Mixed use and other
|
|
3,140
|
|
|
—
|
|
|
1,423
|
|
|
9,641
|
|
|
1,921,501
|
|
|
1,935,705
|
|
||||||
PCI - commercial real-estate
(1)
|
|
—
|
|
|
7,135
|
|
|
2,255
|
|
|
6,277
|
|
|
112,225
|
|
|
127,892
|
|
||||||
Total commercial real-estate
|
|
$
|
22,048
|
|
|
$
|
7,135
|
|
|
$
|
4,346
|
|
|
$
|
29,326
|
|
|
$
|
6,517,763
|
|
|
$
|
6,580,618
|
|
Home equity
|
|
8,978
|
|
|
—
|
|
|
518
|
|
|
4,634
|
|
|
648,915
|
|
|
663,045
|
|
||||||
Residential real estate, including PCI
|
|
17,977
|
|
|
5,304
|
|
|
1,303
|
|
|
8,378
|
|
|
799,158
|
|
|
832,120
|
|
||||||
Premium finance receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial insurance loans
|
|
12,163
|
|
|
9,242
|
|
|
17,796
|
|
|
15,849
|
|
|
2,579,515
|
|
|
2,634,565
|
|
||||||
Life insurance loans
|
|
—
|
|
|
—
|
|
|
4,837
|
|
|
10,017
|
|
|
3,820,936
|
|
|
3,835,790
|
|
||||||
PCI - life insurance loans
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
199,269
|
|
|
199,269
|
|
||||||
Consumer and other
|
|
740
|
|
|
101
|
|
|
242
|
|
|
727
|
|
|
105,903
|
|
|
107,713
|
|
||||||
Total loans, net of unearned income
|
|
$
|
77,602
|
|
|
$
|
22,659
|
|
|
$
|
33,260
|
|
|
$
|
98,338
|
|
|
$
|
21,408,938
|
|
|
$
|
21,640,797
|
|
As of December 31, 2017
|
|
Nonaccrual
|
|
90+ days
and still
accruing
|
|
60-89
days past
due
|
|
30-59
days past
due
|
|
Current
|
|
Total Loans
|
||||||
Aging as a % of Loan Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial, industrial and other
|
|
0.3
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
0.3
|
%
|
|
99.3
|
%
|
|
100.0
|
%
|
Franchise
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
99.7
|
|
|
100.0
|
|
Mortgage warehouse lines of credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.1
|
|
|
97.9
|
|
|
100.0
|
|
Asset-based lending
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
98.8
|
|
|
100.0
|
|
Leases
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
99.4
|
|
|
100.0
|
|
PCI - commercial
(1)
|
|
—
|
|
|
9.3
|
|
|
2.0
|
|
|
—
|
|
|
88.7
|
|
|
100.0
|
|
Total commercial
|
|
0.2
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
0.4
|
%
|
|
99.3
|
%
|
|
100.0
|
%
|
Commercial real-estate
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
99.6
|
|
|
100.0
|
|
Land
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
4.1
|
|
|
95.8
|
|
|
100.0
|
|
Office
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
99.2
|
|
|
100.0
|
|
Industrial
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
99.6
|
|
|
100.0
|
|
Retail
|
|
1.3
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
98.6
|
|
|
100.0
|
|
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
99.9
|
|
|
100.0
|
|
Mixed use and other
|
|
0.2
|
|
|
—
|
|
|
0.1
|
|
|
0.5
|
|
|
99.2
|
|
|
100.0
|
|
PCI - commercial real-estate
(1)
|
|
—
|
|
|
5.6
|
|
|
1.8
|
|
|
4.9
|
|
|
87.7
|
|
|
100.0
|
|
Total commercial real-estate
|
|
0.3
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.4
|
%
|
|
99.1
|
%
|
|
100.0
|
%
|
Home equity
|
|
1.4
|
|
|
—
|
|
|
0.1
|
|
|
0.7
|
|
|
97.8
|
|
|
100.0
|
|
Residential real estate, including PCI
|
|
2.2
|
|
|
0.6
|
|
|
0.2
|
|
|
1.0
|
|
|
96.0
|
|
|
100.0
|
|
Premium finance receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial insurance loans
|
|
0.5
|
|
|
0.4
|
|
|
0.7
|
|
|
0.6
|
|
|
97.8
|
|
|
100.0
|
|
Life insurance loans
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.3
|
|
|
99.6
|
|
|
100.0
|
|
PCI - life insurance loans
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100.0
|
|
|
100.0
|
|
Consumer and other
|
|
0.7
|
|
|
0.1
|
|
|
0.2
|
|
|
0.7
|
|
|
98.3
|
|
|
100.0
|
|
Total loans, net of unearned income
|
|
0.4
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
|
0.5
|
%
|
|
98.8
|
%
|
|
100.0
|
%
|
(1)
|
PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments.
|
|
82
|
|
|
|
|
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Balance at beginning of period
|
|
$
|
90,162
|
|
|
$
|
87,454
|
|
Additions, net from non-covered portfolio
|
|
92,428
|
|
|
55,738
|
|
||
Additions, net from covered non-performing loans subsequent to loss share expiration
|
|
—
|
|
|
2,572
|
|
||
Return to performing status
|
|
(14,449
|
)
|
|
(3,596
|
)
|
||
Payments received
|
|
(29,807
|
)
|
|
(27,202
|
)
|
||
Transfers to OREO and other repossessed assets
|
|
(7,138
|
)
|
|
(9,236
|
)
|
||
Charge-offs
|
|
(15,792
|
)
|
|
(10,362
|
)
|
||
Net change for niche loans
(1)
|
|
(2,170
|
)
|
|
(5,206
|
)
|
||
Balance at end of period
|
|
$
|
113,234
|
|
|
$
|
90,162
|
|
(1)
|
This includes activity for premium finance receivables and indirect consumer loans
|
|
83
|
|
|
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
|
December 31, 2014
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
% of
Loan Type to
Total
Loans
|
|
Amount
|
|
% of
Loan Type to
Total
Loans
|
|
Amount
|
|
% of
Loan Type to
Total
Loans
|
|
Amount
|
|
% of
Loan Type to
Total
Loans
|
|
Amount
|
|
% of
Loan Type to
Total
Loans
|
|||||||||||||||
Allowance for loan losses and allowance for covered loan losses allocation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
|
$
|
67,826
|
|
|
33
|
%
|
|
$
|
57,811
|
|
|
31
|
%
|
|
$
|
44,493
|
|
|
30
|
%
|
|
$
|
36,135
|
|
|
27
|
%
|
|
$
|
31,699
|
|
|
26
|
%
|
Commercial real-estate
|
|
60,267
|
|
|
29
|
|
|
55,227
|
|
|
30
|
|
|
51,422
|
|
|
31
|
|
|
43,758
|
|
|
32
|
|
|
35,533
|
|
|
31
|
|
|||||
Home equity
|
|
8,507
|
|
|
2
|
|
|
10,493
|
|
|
3
|
|
|
11,774
|
|
|
4
|
|
|
12,012
|
|
|
5
|
|
|
12,500
|
|
|
5
|
|
|||||
Residential real-estate
|
|
7,194
|
|
|
4
|
|
|
6,688
|
|
|
4
|
|
|
5,714
|
|
|
4
|
|
|
4,734
|
|
|
3
|
|
|
4,218
|
|
|
3
|
|
|||||
Premium finance receivables – commercial
|
|
6,144
|
|
|
12
|
|
|
5,356
|
|
|
12
|
|
|
6,125
|
|
|
12
|
|
|
6,016
|
|
|
14
|
|
|
5,726
|
|
|
16
|
|
|||||
Premium finance receivables – life insurance
|
|
1,571
|
|
|
19
|
|
|
1,490
|
|
|
19
|
|
|
1,500
|
|
|
18
|
|
|
1,217
|
|
|
17
|
|
|
787
|
|
|
16
|
|
|||||
Consumer and other
|
|
1,261
|
|
|
1
|
|
|
840
|
|
|
1
|
|
|
1,263
|
|
|
1
|
|
|
1,528
|
|
|
1
|
|
|
1,242
|
|
|
1
|
|
|||||
Total allowance for loan losses
|
|
$
|
152,770
|
|
|
100
|
%
|
|
$
|
137,905
|
|
|
100
|
%
|
|
$
|
122,291
|
|
|
100
|
%
|
|
$
|
105,400
|
|
|
99
|
%
|
|
$
|
91,705
|
|
|
98
|
%
|
Covered loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,322
|
|
|
—
|
|
|
3,026
|
|
|
1
|
|
|
2,131
|
|
|
2
|
|
|||||
Total allowance for loan losses and allowance for covered loan losses
|
|
$
|
152,770
|
|
|
100
|
%
|
|
$
|
137,905
|
|
|
100
|
%
|
|
$
|
123,613
|
|
|
100
|
%
|
|
$
|
108,426
|
|
|
100
|
%
|
|
$
|
93,836
|
|
|
100
|
%
|
Allowance category as a percent of total allowance for loan losses and allowance for covered loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
|
44
|
%
|
|
|
|
42
|
%
|
|
|
|
36
|
%
|
|
|
|
33
|
%
|
|
|
|
34
|
%
|
|
|
||||||||||
Commercial real-estate
|
|
39
|
|
|
|
|
40
|
|
|
|
|
42
|
|
|
|
|
40
|
|
|
|
|
38
|
|
|
|
||||||||||
Home equity
|
|
6
|
|
|
|
|
7
|
|
|
|
|
9
|
|
|
|
|
11
|
|
|
|
|
13
|
|
|
|
||||||||||
Residential real-estate
|
|
5
|
|
|
|
|
5
|
|
|
|
|
5
|
|
|
|
|
4
|
|
|
|
|
4
|
|
|
|
||||||||||
Premium finance receivables—commercial
|
|
4
|
|
|
|
|
4
|
|
|
|
|
5
|
|
|
|
|
6
|
|
|
|
|
6
|
|
|
|
||||||||||
Premium finance receivables—life insurance
|
|
1
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
||||||||||
Consumer and other
|
|
1
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
||||||||||
Total allowance for loan losses
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
99
|
%
|
|
|
|
97
|
%
|
|
|
|
98
|
%
|
|
|
||||||||||
Covered loans
|
|
—
|
|
|
|
|
—
|
|
|
|
|
1
|
|
|
|
|
3
|
|
|
|
|
2
|
|
|
|
||||||||||
Total allowance for loan losses
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
||||||||||
Allowance for losses on lending-related commitments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial and commercial real estate
|
|
$
|
1,394
|
|
|
|
|
$
|
1,269
|
|
|
|
|
$
|
1,673
|
|
|
|
|
$
|
949
|
|
|
|
|
$
|
775
|
|
|
|
|||||
Total allowance for credit losses including allowance for covered loan losses
|
|
$
|
154,164
|
|
|
|
|
$
|
139,174
|
|
|
|
|
$
|
125,286
|
|
|
|
|
$
|
109,375
|
|
|
|
|
$
|
94,611
|
|
|
|
|
84
|
|
|
|
|
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Allowance for loan losses at beginning of year
|
|
$
|
137,905
|
|
|
$
|
122,291
|
|
|
$
|
105,400
|
|
|
$
|
91,705
|
|
|
$
|
96,922
|
|
Provision for credit losses
|
|
34,832
|
|
|
29,982
|
|
|
34,790
|
|
|
33,747
|
|
|
22,889
|
|
|||||
Other adjustments
(1)
|
|
(181
|
)
|
|
573
|
|
|
(291
|
)
|
|
(737
|
)
|
|
(824
|
)
|
|||||
Reclassification from (to) allowance for unfunded lending-related commitments
|
|
(126
|
)
|
|
69
|
|
|
(725
|
)
|
|
(138
|
)
|
|
(56
|
)
|
|||||
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
14,532
|
|
|
5,159
|
|
|
7,915
|
|
|
4,253
|
|
|
4,153
|
|
|||||
Commercial real estate
|
|
1,395
|
|
|
4,236
|
|
|
1,930
|
|
|
6,543
|
|
|
15,788
|
|
|||||
Home equity
|
|
2,245
|
|
|
3,952
|
|
|
3,998
|
|
|
4,227
|
|
|
3,895
|
|
|||||
Residential real estate
|
|
1,355
|
|
|
1,284
|
|
|
1,730
|
|
|
2,903
|
|
|
1,750
|
|
|||||
Premium finance receivables – commercial
|
|
12,228
|
|
|
7,335
|
|
|
8,193
|
|
|
7,060
|
|
|
5,722
|
|
|||||
Premium finance receivables – life insurance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Consumer and other
|
|
880
|
|
|
729
|
|
|
925
|
|
|
521
|
|
|
792
|
|
|||||
Total charge-offs
|
|
$
|
32,635
|
|
|
$
|
22,695
|
|
|
$
|
24,691
|
|
|
$
|
25,507
|
|
|
$
|
32,104
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
1,457
|
|
|
1,870
|
|
|
1,594
|
|
|
1,432
|
|
|
1,198
|
|
|||||
Commercial real estate
|
|
5,631
|
|
|
2,190
|
|
|
2,945
|
|
|
2,840
|
|
|
1,334
|
|
|||||
Home equity
|
|
541
|
|
|
746
|
|
|
484
|
|
|
312
|
|
|
535
|
|
|||||
Residential real estate
|
|
2,075
|
|
|
452
|
|
|
225
|
|
|
283
|
|
|
335
|
|
|||||
Premium finance receivables – commercial
|
|
3,069
|
|
|
2,128
|
|
|
2,374
|
|
|
1,288
|
|
|
1,139
|
|
|||||
Premium finance receivables – life insurance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
11
|
|
|||||
Consumer and other
|
|
202
|
|
|
299
|
|
|
186
|
|
|
159
|
|
|
326
|
|
|||||
Total recoveries
|
|
$
|
12,975
|
|
|
$
|
7,685
|
|
|
$
|
7,808
|
|
|
$
|
6,330
|
|
|
$
|
4,878
|
|
Net charge-offs, excluding covered loans
|
|
$
|
(19,660
|
)
|
|
$
|
(15,010
|
)
|
|
$
|
(16,883
|
)
|
|
$
|
(19,177
|
)
|
|
$
|
(27,226
|
)
|
Allowance for loan losses at year end
|
|
$
|
152,770
|
|
|
$
|
137,905
|
|
|
$
|
122,291
|
|
|
$
|
105,400
|
|
|
$
|
91,705
|
|
Allowance for unfunded lending-related commitments at year end
|
|
$
|
1,394
|
|
|
$
|
1,269
|
|
|
$
|
1,673
|
|
|
$
|
949
|
|
|
$
|
775
|
|
Allowance for credit losses at year end
|
|
$
|
154,164
|
|
|
$
|
139,174
|
|
|
$
|
123,964
|
|
|
$
|
106,349
|
|
|
$
|
92,480
|
|
Net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
0.18
|
%
|
|
0.05
|
%
|
|
0.12
|
%
|
|
0.07
|
%
|
|
0.08
|
%
|
|||||
Commercial real estate
|
|
(0.06
|
)
|
|
0.03
|
|
|
(0.02
|
)
|
|
0.07
|
|
|
0.33
|
|
|||||
Home equity
|
|
0.28
|
|
|
0.46
|
|
|
0.46
|
|
|
0.52
|
|
|
0.47
|
|
|||||
Residential real estate
|
|
(0.08
|
)
|
|
0.11
|
|
|
0.23
|
|
|
0.49
|
|
|
0.31
|
|
|||||
Premium finance receivables – commercial
|
|
0.33
|
|
|
0.20
|
|
|
0.24
|
|
|
0.24
|
|
|
0.19
|
|
|||||
Premium finance receivables – life insurance
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|||||
Consumer and other
|
|
0.50
|
|
|
0.34
|
|
|
0.54
|
|
|
0.23
|
|
|
0.28
|
|
|||||
Total loans, net of unearned income, excluding covered loans
|
|
0.09
|
%
|
|
0.07
|
%
|
|
0.09
|
%
|
|
0.12
|
%
|
|
0.20
|
%
|
|||||
Net charge-offs as a percentage of the
provision for credit losses
|
|
56.44
|
%
|
|
50.06
|
%
|
|
48.53
|
%
|
|
56.83
|
%
|
|
118.94
|
%
|
|||||
Year-end total loans (excluding covered loans)
|
|
$
|
23,820,691
|
|
|
$
|
21,640,797
|
|
|
$
|
19,703,172
|
|
|
$
|
17,118,117
|
|
|
$
|
14,409,398
|
|
Allowance for loan losses as a percentage of loans at end of year
|
|
0.64
|
%
|
|
0.64
|
%
|
|
0.62
|
%
|
|
0.62
|
%
|
|
0.64
|
%
|
|||||
Allowance for credit losses as a percentage of loans at end of year
|
|
0.65
|
%
|
|
0.64
|
%
|
|
0.63
|
%
|
|
0.62
|
%
|
|
0.64
|
%
|
(1)
|
Includes
$742,000
of allowance for covered loan losses reclassified as a result of the termination of all existing loss share agreements with the FDIC during the fourth quarter of 2017.
|
|
85
|
|
|
|
|
|
86
|
|
|
|
|
•
|
historical loss experience;
|
•
|
changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses;
|
•
|
changes in national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio;
|
•
|
changes in the nature and volume of the portfolio and in the terms of the loans;
|
•
|
changes in the experience, ability, and depth of lending management and other relevant staff;
|
•
|
changes in the volume and severity of past due loans, the volume of non-accrual loans, and the volume and severity of adversely classified or graded loans;
|
•
|
changes in the quality of the bank’s loan review system;
|
•
|
changes in the underlying collateral for collateral dependent loans;
|
•
|
the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and
|
•
|
the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the bank’s existing portfolio.
|
|
87
|
|
|
|
|
|
88
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Accruing TDRs:
|
|
|
|
|
||||
Commercial
|
|
$
|
8,545
|
|
|
$
|
19,917
|
|
Commercial real estate
|
|
13,895
|
|
|
16,160
|
|
||
Residential real estate and other
|
|
10,841
|
|
|
3,606
|
|
||
Total accruing TDRs
|
|
$
|
33,281
|
|
|
$
|
39,683
|
|
Non-accrual TDRs:
(1)
|
|
|
|
|
||||
Commercial
|
|
$
|
27,774
|
|
|
$
|
4,000
|
|
Commercial real estate
|
|
1,552
|
|
|
1,340
|
|
||
Residential real estate and other
|
|
3,495
|
|
|
4,763
|
|
||
Total non-accrual TDRs
|
|
$
|
32,821
|
|
|
$
|
10,103
|
|
Total TDRs:
|
|
|
|
|
||||
Commercial
|
|
$
|
36,319
|
|
|
$
|
23,917
|
|
Commercial real estate
|
|
15,447
|
|
|
17,500
|
|
||
Residential real estate and other
|
|
14,336
|
|
|
8,369
|
|
||
Total TDRs
|
|
$
|
66,102
|
|
|
$
|
49,786
|
|
Weighted-average contractual interest rate of TDRs
|
|
5.54
|
%
|
|
4.40
|
%
|
(1)
|
Included in total non-performing loans.
|
|
89
|
|
|
|
|
Year Ended December 31, 2018
(Dollars in thousands)
|
|
Commercial
|
|
Commercial
Real Estate
|
|
Residential
Real Estate
and Other
|
|
Total
|
||||||||
Balance at beginning of period
|
|
$
|
23,917
|
|
|
$
|
17,500
|
|
|
$
|
8,369
|
|
|
$
|
49,786
|
|
Additions during the period
|
|
18,967
|
|
|
514
|
|
|
9,762
|
|
|
29,243
|
|
||||
Reductions:
|
|
|
|
|
|
|
|
|
||||||||
Charge-offs
|
|
(2,385
|
)
|
|
(2
|
)
|
|
(468
|
)
|
|
(2,855
|
)
|
||||
Transferred to OREO and other repossessed assets
|
|
(37
|
)
|
|
(119
|
)
|
|
—
|
|
|
(156
|
)
|
||||
Removal of TDR loan status
(1)
|
|
(654
|
)
|
|
(631
|
)
|
|
—
|
|
|
(1,285
|
)
|
||||
Payments received
|
|
(3,489
|
)
|
|
(1,815
|
)
|
|
(3,327
|
)
|
|
(8,631
|
)
|
||||
Balance at period end
|
|
$
|
36,319
|
|
|
$
|
15,447
|
|
|
$
|
14,336
|
|
|
$
|
66,102
|
|
Year Ended December 31, 2017
(Dollars in thousands)
|
|
Commercial
|
|
Commercial
Real Estate
|
|
Residential
Real Estate
and Other
|
|
Total
|
||||||||
Balance at beginning of period
|
|
$
|
6,130
|
|
|
$
|
28,146
|
|
|
$
|
7,432
|
|
|
$
|
41,708
|
|
Additions during the period
|
|
20,031
|
|
|
1,245
|
|
|
3,049
|
|
|
24,325
|
|
||||
Reductions:
|
|
|
|
|
|
|
|
|
||||||||
Charge-offs
|
|
(454
|
)
|
|
(1,024
|
)
|
|
(156
|
)
|
|
(1,634
|
)
|
||||
Transferred to OREO and other repossessed assets
|
|
—
|
|
|
(770
|
)
|
|
(165
|
)
|
|
(935
|
)
|
||||
Removal of TDR loan status
(1)
|
|
(610
|
)
|
|
(2,331
|
)
|
|
—
|
|
|
(2,941
|
)
|
||||
Payments received
|
|
(1,180
|
)
|
|
(7,766
|
)
|
|
(1,791
|
)
|
|
(10,737
|
)
|
||||
Balance at period end
|
|
$
|
23,917
|
|
|
$
|
17,500
|
|
|
$
|
8,369
|
|
|
$
|
49,786
|
|
Year Ended December 31, 2016
(Dollars in thousands)
|
|
Commercial
|
|
Commercial
Real Estate
|
|
Residential
Real Estate
and Other
|
|
Total
|
||||||||
Balance at beginning of period
|
|
$
|
5,747
|
|
|
$
|
38,707
|
|
|
$
|
7,399
|
|
|
$
|
51,853
|
|
Additions during the period
|
|
3,294
|
|
|
8,521
|
|
|
1,082
|
|
|
12,897
|
|
||||
Reductions:
|
|
|
|
|
|
|
|
|
||||||||
Charge-offs
|
|
(1,482
|
)
|
|
(1,051
|
)
|
|
(212
|
)
|
|
(2,745
|
)
|
||||
Transferred to OREO and other repossessed assets
|
|
—
|
|
|
(1,433
|
)
|
|
(535
|
)
|
|
(1,968
|
)
|
||||
Removal of TDR loan status
(1)
|
|
—
|
|
|
(7,816
|
)
|
|
—
|
|
|
(7,816
|
)
|
||||
Payments received
|
|
(1,429
|
)
|
|
(8,782
|
)
|
|
(302
|
)
|
|
(10,513
|
)
|
||||
Balance at period end
|
|
$
|
6,130
|
|
|
$
|
28,146
|
|
|
$
|
7,432
|
|
|
$
|
41,708
|
|
(1)
|
Loan was previously classified as a TDR and subsequently performed in compliance with the loan’s modified terms for a period of six months (including over a calendar year-end) at a modified interest rate which represented a market rate at the time of restructuring. Per our TDR policy, the TDR classification is removed.
|
|
90
|
|
|
|
|
|
|
Year Ended
|
||||||
(Dollars in thousands)
|
|
December 31,
|
|
December 31,
|
||||
|
2018
|
|
2017
|
|||||
Balance at beginning of period
|
|
$
|
40,646
|
|
|
$
|
40,282
|
|
Disposal/resolved
|
|
(19,375
|
)
|
|
(15,412
|
)
|
||
Transfers in at fair value, less costs to sell
|
|
7,936
|
|
|
13,864
|
|
||
Transfers in from covered OREO subsequent to loss share expiration
|
|
—
|
|
|
3,611
|
|
||
Additions from acquisition
|
|
1,578
|
|
|
—
|
|
||
Fair value adjustments
|
|
(5,965
|
)
|
|
(1,699
|
)
|
||
Balance at end of period
|
|
$
|
24,820
|
|
|
$
|
40,646
|
|
|
|
Period End
|
||||||
(Dollars in thousands)
|
|
December 31,
|
|
December 31,
|
||||
|
2018
|
|
2017
|
|||||
Residential real estate
|
|
$
|
3,446
|
|
|
$
|
7,515
|
|
Residential real estate development
|
|
1,426
|
|
|
2,221
|
|
||
Commercial real estate
|
|
19,948
|
|
|
30,910
|
|
||
Total
|
|
$
|
24,820
|
|
|
$
|
40,646
|
|
|
91
|
|
|
|
|
|
|
Minimum
Ratios
|
|
Minimum Ratio + Capital Conservation Buffer
(1)
|
|
Minimum Well
Capitalized
Ratios
(2)
|
|
2018
|
|
2017
|
|
2016
|
|||||
Common Equity Tier 1 capital to risk-weighted assets
|
|
4.5
|
%
|
|
6.38
|
%
|
|
N/A
|
|
9.3
|
%
|
|
9.4
|
%
|
|
8.6
|
%
|
Tier 1 capital to risk-weighted assets
|
|
6.0
|
|
|
7.88
|
|
|
6.0
|
|
9.7
|
|
|
9.9
|
|
|
9.7
|
|
Total capital to risk-weighted assets
|
|
8.0
|
|
|
9.88
|
|
|
10.0
|
|
11.6
|
|
|
12.0
|
|
|
11.9
|
|
Tier 1 leverage ratio
|
|
4.0
|
|
|
N/A
|
|
|
N/A
|
|
9.1
|
|
|
9.3
|
|
|
8.9
|
|
Total average equity to total average assets
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
10.7
|
|
|
10.8
|
|
|
10.5
|
|
Dividend payout ratio
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
13.0
|
|
|
12.7
|
|
|
13.1
|
|
(1)
|
Reflects the Capital Conservation Buffer of 1.875% applicable during 2018. The Company already meets the Capital Conservation Buffer at the fully phased-in level of 2.5%.
|
(2)
|
Reflects the well-capitalized standard applicable to the Company for purposes of the Federal Reserve’s Regulation Y. The Federal Reserve has not yet revised the well-capitalized standard for BHCs to reflect the higher capital requirements imposed under the U.S. Basel III Rule or to add Common Equity Tier 1 capital ratio and Tier 1 leverage ratio requirements to this standard. As a result, the Common Equity Tier 1 capital ratio and Tier 1 leverage ratio are denoted as “N/A” in this column. If the Federal Reserve were to apply the same or a very similar well-capitalized standard to BHCs as the standard applicable to our subsidiary banks, the Company’s capital ratios as of December 31, 2018 would exceed such revised well-capitalized standard.
|
|
92
|
|
|
|
|
|
|
December 31,
|
||||||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||
Total deposits
|
|
$
|
26,094,678
|
|
|
23,183,347
|
|
|
21,658,632
|
|
|
18,639,634
|
|
|
16,281,844
|
|
Brokered Deposits
(1)
|
|
1,071,562
|
|
|
1,445,306
|
|
|
1,159,475
|
|
|
862,026
|
|
|
718,986
|
|
|
Brokered deposits as a percentage of total deposits
(1)
|
|
4.1
|
%
|
|
6.2
|
%
|
|
5.4
|
%
|
|
4.6
|
%
|
|
4.4
|
%
|
(1)
|
Brokered Deposits include certificates of deposit obtained through deposit brokers, deposits received through the Certificate of Deposit Account Registry Program, as well as wealth management deposits of brokerage customers from unaffiliated companies which have been placed into deposit accounts of the banks.
|
|
93
|
|
|
|
|
|
|
|
|
Payments Due in
|
|||||||||||||||
(Dollars in thousands)
|
|
Note
Reference
|
|
One year
or less
|
|
From one to
three years
|
|
From three
to five years
|
|
Over five
years
|
|
Total
|
|||||||
Deposits
|
|
10
|
|
|
$
|
24,046,847
|
|
|
1,962,282
|
|
|
85,542
|
|
|
7
|
|
|
26,094,678
|
|
FHLB advances
(1)
|
|
11
|
|
|
1,991
|
|
|
9,335
|
|
|
315,000
|
|
|
100,000
|
|
|
426,326
|
|
|
Subordinated notes
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
139,210
|
|
|
139,210
|
|
|
Other borrowings
|
|
13
|
|
|
212,972
|
|
|
53,190
|
|
|
127,098
|
|
|
595
|
|
|
393,855
|
|
|
Junior subordinated debentures
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
253,566
|
|
|
253,566
|
|
|
Operating leases
|
|
16
|
|
|
15,106
|
|
|
31,522
|
|
|
27,454
|
|
|
131,615
|
|
|
205,697
|
|
|
Purchase obligations
(2)
|
|
|
|
34,382
|
|
|
36,607
|
|
|
28,427
|
|
|
80,923
|
|
|
180,339
|
|
||
Total
|
|
|
|
$
|
24,311,298
|
|
|
2,092,936
|
|
|
583,521
|
|
|
705,916
|
|
|
27,693,671
|
|
(1)
|
Certain advances provide the FHLB with call dates which are not reflected in the above table.
|
(2)
|
Purchase obligations presented above primarily relate to certain contractual cash obligations for pending acquisitions, marketing obligations and services related to the construction of facilities, data processing and the outsourcing of certain operational activities.
|
(Dollars in thousands)
|
|
One year or
less
|
|
From one to
three years
|
|
From three
to five years
|
|
Over
five years
|
|
Total
|
||||||
Commitment type:
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial, commercial real estate and construction
|
|
$
|
2,330,710
|
|
|
1,516,789
|
|
|
613,090
|
|
|
263,529
|
|
|
4,724,118
|
|
Residential real estate
|
|
389,681
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
389,681
|
|
|
Revolving home equity lines of credit
|
|
807,889
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
807,889
|
|
|
Letters of credit
|
|
192,911
|
|
|
23,200
|
|
|
16,874
|
|
|
353
|
|
|
233,338
|
|
|
Commitments to sell mortgage loans
|
|
481,567
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
481,567
|
|
|
94
|
|
|
|
|
|
95
|
|
|
|
|
Static Shock Scenarios
|
|
+200
Basis Points |
|
+100
Basis Points |
|
-100
Basis Points |
|
-200
Basis Points |
||||
December 31, 2018
|
|
15.6
|
%
|
|
7.9
|
%
|
|
(8.6
|
)%
|
|
(20.4
|
)%
|
December 31, 2017
|
|
17.7
|
|
|
9.0
|
|
|
(11.8
|
)
|
|
(23.2
|
)
|
Ramp Scenarios
|
|
+200
Basis Points |
|
+100
Basis Points |
|
-100
Basis Points |
|
-200
Basis Points |
||||
December 31, 2018
|
|
7.4
|
%
|
|
3.8
|
%
|
|
(3.6
|
)%
|
|
(8.5
|
)%
|
December 31, 2017
|
|
8.9
|
|
|
4.6
|
|
|
(5.1
|
)
|
|
(12.0
|
)
|
|
96
|
|
|
|
|
|
97
|
|
|
|
|
|
98
|
|
|
|
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
392,142
|
|
|
$
|
277,534
|
|
Federal funds sold and securities purchased under resale agreements
|
|
58
|
|
|
57
|
|
||
Interest bearing deposits with banks
|
|
1,099,594
|
|
|
1,063,242
|
|
||
Available-for-sale securities, at fair value
|
|
2,126,081
|
|
|
1,803,666
|
|
||
Held-to-maturity securities, at amortized cost ($1.0 billion and $812.5 million fair value at December 31, 2018 and 2017, respectively)
|
|
1,067,439
|
|
|
826,449
|
|
||
Trading account securities
|
|
1,692
|
|
|
995
|
|
||
Equity securities with readily determinable fair value
|
|
34,717
|
|
|
—
|
|
||
Federal Home Loan Bank and Federal Reserve Bank stock
|
|
91,354
|
|
|
89,989
|
|
||
Brokerage customer receivables
|
|
12,609
|
|
|
26,431
|
|
||
Mortgage loans held-for-sale
|
|
264,070
|
|
|
313,592
|
|
||
Loans, net of unearned income
|
|
23,820,691
|
|
|
21,640,797
|
|
||
Allowance for loan losses
|
|
(152,770
|
)
|
|
(137,905
|
)
|
||
Net loans
|
|
23,667,921
|
|
|
21,502,892
|
|
||
Premises and equipment, net
|
|
671,169
|
|
|
621,895
|
|
||
Lease investments, net
|
|
233,208
|
|
|
212,335
|
|
||
Accrued interest receivable and other assets
|
|
696,707
|
|
|
567,374
|
|
||
Trade date securities receivable
|
|
263,523
|
|
|
90,014
|
|
||
Goodwill
|
|
573,141
|
|
|
501,884
|
|
||
Other intangible assets
|
|
49,424
|
|
|
17,621
|
|
||
Total assets
|
|
$
|
31,244,849
|
|
|
$
|
27,915,970
|
|
|
|
|
|
|
||||
Liabilities and Shareholders’ Equity
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
||||
Non-interest bearing
|
|
$
|
6,569,880
|
|
|
$
|
6,792,497
|
|
Interest bearing
|
|
19,524,798
|
|
|
16,390,850
|
|
||
Total deposits
|
|
26,094,678
|
|
|
23,183,347
|
|
||
Federal Home Loan Bank advances
|
|
426,326
|
|
|
559,663
|
|
||
Other borrowings
|
|
393,855
|
|
|
266,123
|
|
||
Subordinated notes
|
|
139,210
|
|
|
139,088
|
|
||
Junior subordinated debentures
|
|
253,566
|
|
|
253,566
|
|
||
Accrued interest payable and other liabilities
|
|
669,644
|
|
|
537,244
|
|
||
Total liabilities
|
|
27,977,279
|
|
|
24,939,031
|
|
||
Shareholders’ Equity:
|
|
|
|
|
||||
Preferred stock, no par value; 20,000,000 shares authorized:
|
|
|
|
|
||||
Series D - $25 liquidation value; 5,000,000 shares issued and outstanding at December 31, 2018 and December 31, 2017
|
|
125,000
|
|
|
125,000
|
|
||
Common stock, no par value; $1.00 stated value; 100,000,000 shares authorized at December 31, 2018 and 2017; 56,518,119 shares issued at December 31, 2018 and 56,068,220 shares issued at December 31, 2017
|
|
56,518
|
|
|
56,068
|
|
||
Surplus
|
|
1,557,984
|
|
|
1,529,035
|
|
||
Treasury stock, at cost, 110,561 shares at December 31, 2018 and 103,013 shares at December 31, 2017
|
|
(5,634
|
)
|
|
(4,986
|
)
|
||
Retained earnings
|
|
1,610,574
|
|
|
1,313,657
|
|
||
Accumulated other comprehensive loss
|
|
(76,872
|
)
|
|
(41,835
|
)
|
||
Total shareholders’ equity
|
|
3,267,570
|
|
|
2,976,939
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
31,244,849
|
|
|
$
|
27,915,970
|
|
|
99
|
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||
(In thousands, except per share data)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Interest income
|
|
|
|
|
|
|
||||||
Interest and fees on loans
|
|
$
|
1,044,502
|
|
|
$
|
856,549
|
|
|
$
|
726,048
|
|
Mortgage loans held-for-sale
|
|
15,738
|
|
|
12,332
|
|
|
14,953
|
|
|||
Interest bearing deposits with banks
|
|
17,090
|
|
|
9,252
|
|
|
4,236
|
|
|||
Federal funds sold and securities purchased under resale agreements
|
|
1
|
|
|
2
|
|
|
4
|
|
|||
Investment securities
|
|
87,382
|
|
|
63,315
|
|
|
62,038
|
|
|||
Trading account securities
|
|
43
|
|
|
25
|
|
|
75
|
|
|||
Federal Home Loan Bank and Federal Reserve Bank stock
|
|
5,331
|
|
|
4,370
|
|
|
4,287
|
|
|||
Brokerage customer receivables
|
|
723
|
|
|
623
|
|
|
816
|
|
|||
Total interest income
|
|
1,170,810
|
|
|
946,468
|
|
|
812,457
|
|
|||
Interest expense
|
|
|
|
|
|
|
||||||
Interest on deposits
|
|
166,553
|
|
|
83,326
|
|
|
58,409
|
|
|||
Interest on Federal Home Loan Bank advances
|
|
12,412
|
|
|
8,798
|
|
|
10,886
|
|
|||
Interest on other borrowings
|
|
8,599
|
|
|
5,370
|
|
|
4,355
|
|
|||
Interest on subordinated notes
|
|
7,121
|
|
|
7,116
|
|
|
7,111
|
|
|||
Interest on junior subordinated debentures
|
|
11,222
|
|
|
9,782
|
|
|
9,503
|
|
|||
Total interest expense
|
|
205,907
|
|
|
114,392
|
|
|
90,264
|
|
|||
Net interest income
|
|
964,903
|
|
|
832,076
|
|
|
722,193
|
|
|||
Provision for credit losses
|
|
34,832
|
|
|
29,768
|
|
|
34,084
|
|
|||
Net interest income after provision for credit losses
|
|
930,071
|
|
|
802,308
|
|
|
688,109
|
|
|||
Non-interest income
|
|
|
|
|
|
|
||||||
Wealth management
|
|
90,963
|
|
|
81,766
|
|
|
76,018
|
|
|||
Mortgage banking
|
|
136,990
|
|
|
113,472
|
|
|
128,743
|
|
|||
Service charges on deposit accounts
|
|
36,404
|
|
|
34,513
|
|
|
31,210
|
|
|||
(Losses) gains on investment securities, net
|
|
(2,898
|
)
|
|
45
|
|
|
7,645
|
|
|||
Fees from covered call options
|
|
3,519
|
|
|
4,402
|
|
|
11,470
|
|
|||
Trading gains (losses), net
|
|
11
|
|
|
(845
|
)
|
|
91
|
|
|||
Operating lease income, net
|
|
38,451
|
|
|
29,646
|
|
|
16,441
|
|
|||
Other
|
|
52,710
|
|
|
56,507
|
|
|
53,812
|
|
|||
Total non-interest income
|
|
356,150
|
|
|
319,506
|
|
|
325,430
|
|
|||
Non-interest expense
|
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
|
480,077
|
|
|
430,078
|
|
|
405,158
|
|
|||
Equipment
|
|
42,949
|
|
|
38,358
|
|
|
37,055
|
|
|||
Operating lease equipment depreciation
|
|
29,305
|
|
|
24,107
|
|
|
13,259
|
|
|||
Occupancy, net
|
|
57,814
|
|
|
52,920
|
|
|
50,912
|
|
|||
Data processing
|
|
35,027
|
|
|
31,495
|
|
|
28,776
|
|
|||
Advertising and marketing
|
|
41,140
|
|
|
30,830
|
|
|
24,776
|
|
|||
Professional fees
|
|
32,306
|
|
|
27,835
|
|
|
20,411
|
|
|||
Amortization of other intangible assets
|
|
4,571
|
|
|
4,401
|
|
|
4,789
|
|
|||
FDIC insurance
|
|
17,209
|
|
|
16,231
|
|
|
16,065
|
|
|||
OREO expenses, net
|
|
6,120
|
|
|
3,593
|
|
|
5,187
|
|
|||
Other
|
|
79,570
|
|
|
71,969
|
|
|
75,297
|
|
|||
Total non-interest expense
|
|
826,088
|
|
|
731,817
|
|
|
681,685
|
|
|||
Income before taxes
|
|
460,133
|
|
|
389,997
|
|
|
331,854
|
|
|||
Income tax expense
|
|
116,967
|
|
|
132,315
|
|
|
124,979
|
|
|||
Net income
|
|
$
|
343,166
|
|
|
$
|
257,682
|
|
|
$
|
206,875
|
|
Preferred stock dividends
|
|
8,200
|
|
|
9,778
|
|
|
14,513
|
|
|||
Net income applicable to common shares
|
|
$
|
334,966
|
|
|
$
|
247,904
|
|
|
$
|
192,362
|
|
Net income per common share—Basic
|
|
$
|
5.95
|
|
|
$
|
4.53
|
|
|
$
|
3.83
|
|
Net income per common share—Diluted
|
|
$
|
5.86
|
|
|
$
|
4.40
|
|
|
$
|
3.66
|
|
Cash dividends declared per common share
|
|
$
|
0.76
|
|
|
$
|
0.56
|
|
|
$
|
0.48
|
|
Weighted average common shares outstanding
|
|
56,300
|
|
|
54,703
|
|
|
50,278
|
|
|||
Dilutive potential common shares
|
|
908
|
|
|
1,983
|
|
|
3,994
|
|
|||
Average common shares and dilutive common shares
|
|
57,208
|
|
|
56,686
|
|
|
54,272
|
|
|
100
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
$
|
343,166
|
|
|
$
|
257,682
|
|
|
$
|
206,875
|
|
Unrealized (losses) gains on available-for-sale securities
|
|
|
|
|
|
||||||
Before tax
|
(27,408
|
)
|
|
22,123
|
|
|
(28,932
|
)
|
|||
Tax effect
|
7,354
|
|
|
(7,706
|
)
|
|
11,378
|
|
|||
Net of tax
|
(20,054
|
)
|
|
14,417
|
|
|
(17,554
|
)
|
|||
Reclassification of net gains on available-for-sale securities included in net income
|
|
|
|
|
|
||||||
Before tax
|
33
|
|
|
45
|
|
|
7,645
|
|
|||
Tax effect
|
(9
|
)
|
|
(18
|
)
|
|
(3,004
|
)
|
|||
Net of tax
|
24
|
|
|
27
|
|
|
4,641
|
|
|||
Reclassification of amortization of unrealized losses on investment securities transferred to held-to-maturity from available-for-sale
|
|
|
|
|
|
||||||
Before tax
|
89
|
|
|
1,479
|
|
|
(17,386
|
)
|
|||
Tax effect
|
(24
|
)
|
|
(585
|
)
|
|
6,826
|
|
|||
Net of tax
|
65
|
|
|
894
|
|
|
(10,560
|
)
|
|||
Net unrealized (losses) gains on available-for-sale securities
|
(20,143
|
)
|
|
13,496
|
|
|
(11,635
|
)
|
|||
Unrealized (losses) gains on derivative instruments
|
|
|
|
|
|
||||||
Before tax
|
(1,160
|
)
|
|
4,958
|
|
|
10,473
|
|
|||
Tax effect
|
310
|
|
|
(1,959
|
)
|
|
(4,115
|
)
|
|||
Net unrealized (losses) gains on derivative instruments
|
(850
|
)
|
|
2,999
|
|
|
6,358
|
|
|||
Foreign currency translation adjustment
|
|
|
|
|
|
||||||
Before tax
|
(12,216
|
)
|
|
9,446
|
|
|
3,737
|
|
|||
Tax effect
|
3,026
|
|
|
(2,448
|
)
|
|
(1,080
|
)
|
|||
Net foreign currency translation adjustment
|
(9,190
|
)
|
|
6,998
|
|
|
2,657
|
|
|||
Total other comprehensive (loss) income
|
(30,183
|
)
|
|
23,493
|
|
|
(2,620
|
)
|
|||
Comprehensive income
|
$
|
312,983
|
|
|
$
|
281,175
|
|
|
$
|
204,255
|
|
|
101
|
|
|
|
|
(In thousands)
|
|
Preferred
stock
|
|
Common
stock
|
|
Surplus
|
|
Treasury
stock
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive
income (loss)
|
|
Total
shareholders'
equity
|
||||||||||||||
Balance at December 31, 2015
|
|
$
|
251,287
|
|
|
$
|
48,469
|
|
|
$
|
1,190,988
|
|
|
$
|
(3,973
|
)
|
|
$
|
928,211
|
|
|
$
|
(62,708
|
)
|
|
$
|
2,352,274
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
206,875
|
|
|
—
|
|
|
206,875
|
|
|||||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,620
|
)
|
|
(2,620
|
)
|
|||||||
Cash dividends declared on common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,055
|
)
|
|
—
|
|
|
(24,055
|
)
|
|||||||
Dividends on preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,513
|
)
|
|
—
|
|
|
(14,513
|
)
|
|||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
9,303
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,303
|
|
|||||||
Conversion of Series C Preferred Stock to common stock
|
|
(30
|
)
|
|
1
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Common stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
New issuance, net of costs
|
|
—
|
|
|
3,000
|
|
|
149,911
|
|
|
|
|
|
—
|
|
|
—
|
|
|
152,911
|
|
|||||||
Exercise of stock options and warrants
|
|
—
|
|
|
329
|
|
|
11,276
|
|
|
(377
|
)
|
|
—
|
|
|
—
|
|
|
11,228
|
|
|||||||
Restricted stock awards
|
|
—
|
|
|
98
|
|
|
142
|
|
|
(239
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
Employee stock purchase plan
|
|
—
|
|
|
56
|
|
|
2,581
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,637
|
|
|||||||
Director compensation plan
|
|
—
|
|
|
25
|
|
|
1,551
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,576
|
|
|||||||
Balance at December 31, 2016
|
|
$
|
251,257
|
|
|
$
|
51,978
|
|
|
$
|
1,365,781
|
|
|
$
|
(4,589
|
)
|
|
$
|
1,096,518
|
|
|
$
|
(65,328
|
)
|
|
$
|
2,695,617
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
257,682
|
|
|
—
|
|
|
257,682
|
|
|||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,493
|
|
|
23,493
|
|
|||||||
Cash dividends declared on common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30,765
|
)
|
|
—
|
|
|
(30,765
|
)
|
|||||||
Dividends on preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,778
|
)
|
|
—
|
|
|
(9,778
|
)
|
|||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
12,858
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,858
|
|
|||||||
Conversion of Series C Preferred Stock to common stock
|
|
(126,257
|
)
|
|
3,121
|
|
|
123,136
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Common stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Exercise of stock options and warrants
|
|
—
|
|
|
813
|
|
|
23,261
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,074
|
|
|||||||
Restricted stock awards
|
|
—
|
|
|
88
|
|
|
(88
|
)
|
|
(397
|
)
|
|
—
|
|
|
—
|
|
|
(397
|
)
|
|||||||
Employee stock purchase plan
|
|
—
|
|
|
36
|
|
|
2,494
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,530
|
|
|||||||
Director compensation plan
|
|
—
|
|
|
32
|
|
|
1,593
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,625
|
|
|||||||
Balance at December 31, 2017
|
|
$
|
125,000
|
|
|
$
|
56,068
|
|
|
$
|
1,529,035
|
|
|
$
|
(4,986
|
)
|
|
$
|
1,313,657
|
|
|
$
|
(41,835
|
)
|
|
$
|
2,976,939
|
|
Cumulative effect adjustment from the adoption of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
ASU 2016-01
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,880
|
|
|
(1,880
|
)
|
|
—
|
|
|||||||
ASU 2017-12
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(116
|
)
|
|
—
|
|
|
(116
|
)
|
|||||||
ASU 2018-02
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,974
|
|
|
(2,974
|
)
|
|
—
|
|
|||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
343,166
|
|
|
—
|
|
|
343,166
|
|
|||||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
(30,183
|
)
|
|
(30,183
|
)
|
||||||||
Cash dividends declared on common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42,787
|
)
|
|
—
|
|
|
(42,787
|
)
|
|||||||
Dividends on preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,200
|
)
|
|
—
|
|
|
(8,200
|
)
|
|||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
13,496
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,496
|
|
|||||||
Common stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Exercise of stock options and warrants
|
|
—
|
|
|
299
|
|
|
11,359
|
|
|
(192
|
)
|
|
—
|
|
|
—
|
|
|
11,466
|
|
|||||||
Restricted stock awards
|
|
—
|
|
|
101
|
|
|
(101
|
)
|
|
(456
|
)
|
|
—
|
|
|
—
|
|
|
(456
|
)
|
|||||||
Employee stock purchase plan
|
|
—
|
|
|
31
|
|
|
2,492
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,523
|
|
|||||||
Director compensation plan
|
|
—
|
|
|
19
|
|
|
1,703
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,722
|
|
|||||||
Balance at December 31, 2018
|
|
$
|
125,000
|
|
|
$
|
56,518
|
|
|
$
|
1,557,984
|
|
|
$
|
(5,634
|
)
|
|
$
|
1,610,574
|
|
|
$
|
(76,872
|
)
|
|
$
|
3,267,570
|
|
|
102
|
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Operating Activities:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
343,166
|
|
|
$
|
257,682
|
|
|
$
|
206,875
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||||||
Provision for credit losses
|
|
34,832
|
|
|
29,768
|
|
|
34,084
|
|
|||
Depreciation, amortization and accretion, net
|
|
67,665
|
|
|
63,107
|
|
|
53,148
|
|
|||
Deferred income tax expense
|
|
55,224
|
|
|
63,243
|
|
|
6,676
|
|
|||
Stock-based compensation expense
|
|
13,496
|
|
|
12,858
|
|
|
9,303
|
|
|||
Net amortization of premium on securities
|
|
7,411
|
|
|
6,098
|
|
|
5,646
|
|
|||
Accretion of discounts on loans
|
|
(20,318
|
)
|
|
(22,784
|
)
|
|
(35,571
|
)
|
|||
Mortgage servicing rights fair value change, net
|
|
5,370
|
|
|
1,857
|
|
|
3,405
|
|
|||
Originations and purchases of mortgage loans held-for-sale
|
|
(3,955,438
|
)
|
|
(3,692,085
|
)
|
|
(4,386,339
|
)
|
|||
Proceeds from sales of mortgage loans held-for-sale
|
|
4,076,887
|
|
|
3,869,137
|
|
|
4,468,984
|
|
|||
BOLI income
|
|
(5,448
|
)
|
|
(3,524
|
)
|
|
(3,594
|
)
|
|||
(Increase) decrease in trading securities, net
|
|
(697
|
)
|
|
994
|
|
|
(1,541
|
)
|
|||
Net decrease (increase) in brokerage customer receivables
|
|
13,822
|
|
|
(1,250
|
)
|
|
2,450
|
|
|||
Gains on mortgage loans sold
|
|
(104,998
|
)
|
|
(88,699
|
)
|
|
(112,981
|
)
|
|||
Losses (gains) on investment securities, net, and dividend reinvestment on equity securities
|
|
2,000
|
|
|
(45
|
)
|
|
(7,645
|
)
|
|||
Gains on early extinguishment of debt, net
|
|
—
|
|
|
—
|
|
|
(3,588
|
)
|
|||
Losses (gains) on sales of premises and equipment, net
|
|
64
|
|
|
(192
|
)
|
|
(305
|
)
|
|||
Net losses on sales and fair value adjustments of other real estate owned
|
|
4,664
|
|
|
639
|
|
|
1,381
|
|
|||
Gain on termination of loss share agreements with the FDIC
|
|
—
|
|
|
(385
|
)
|
|
—
|
|
|||
Increase in accrued interest receivable and other assets, net
|
|
(133,519
|
)
|
|
(126,583
|
)
|
|
(43,953
|
)
|
|||
(Decrease) increase in accrued interest payable and other liabilities, net
|
|
(27,001
|
)
|
|
31,790
|
|
|
114,531
|
|
|||
Net Cash Provided by Operating Activities
|
|
377,182
|
|
|
401,626
|
|
|
310,966
|
|
|||
Investing Activities:
|
|
|
|
|
|
|
||||||
Proceeds from maturities and calls of available-for-sale securities
|
|
352,683
|
|
|
276,097
|
|
|
1,247,894
|
|
|||
Proceeds from maturities and calls of held-to-maturity securities
|
|
11,129
|
|
|
108,943
|
|
|
735,036
|
|
|||
Proceeds from sales of available-for-sale securities
|
|
214,196
|
|
|
344,674
|
|
|
2,194,278
|
|
|||
Proceeds from sales of equity securities with readily determinable fair value
|
|
1,895
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from sales and capital distributions of equity securities without readily determinable fair value
|
|
1,324
|
|
|
—
|
|
|
—
|
|
|||
Purchases of available-for-sale securities
|
|
(1,095,375
|
)
|
|
(774,041
|
)
|
|
(3,398,640
|
)
|
|||
Purchases of held-to-maturity securities
|
|
(253,129
|
)
|
|
(301,909
|
)
|
|
(486,696
|
)
|
|||
Purchases of equity securities without readily determinable fair value
|
|
(4,592
|
)
|
|
—
|
|
|
—
|
|
|||
(Purchase) redemption of Federal Home Loan Bank and Federal Reserve Bank stock, net
|
|
(1,365
|
)
|
|
43,505
|
|
|
(31,913
|
)
|
|||
Distributions from investments in partnerships, net
|
|
3,409
|
|
|
512
|
|
|
339
|
|
|||
Net cash paid in business combinations
|
|
(53,871
|
)
|
|
(284
|
)
|
|
(613,619
|
)
|
|||
Proceeds from sales of other real estate owned
|
|
19,375
|
|
|
18,742
|
|
|
38,367
|
|
|||
Proceeds (paid to) received from the FDIC related to reimbursements on covered assets
|
|
—
|
|
|
(15,411
|
)
|
|
1,207
|
|
|||
Net increase in interest-bearing deposits with banks
|
|
(15,988
|
)
|
|
(81,621
|
)
|
|
(366,591
|
)
|
|||
Net increase in loans
|
|
(1,883,354
|
)
|
|
(1,863,245
|
)
|
|
(1,779,905
|
)
|
|||
Redemption of BOLI
|
|
8,438
|
|
|
—
|
|
|
1,840
|
|
|||
Purchases of premises and equipment, net
|
|
(68,273
|
)
|
|
(59,194
|
)
|
|
(33,923
|
)
|
|||
Net Cash Used for Investing Activities
|
|
(2,763,498
|
)
|
|
(2,303,232
|
)
|
|
(2,492,326
|
)
|
|||
Financing Activities:
|
|
|
|
|
|
|
||||||
Increase in deposit accounts
|
|
2,547,399
|
|
|
1,524,848
|
|
|
2,769,022
|
|
|||
Increase (decrease) in subordinated notes and other borrowings, net
|
|
137,257
|
|
|
(4,888
|
)
|
|
(3,405
|
)
|
|||
(Decrease) increase in Federal Home Loan Bank advances, net
|
|
(147,999
|
)
|
|
403,000
|
|
|
(707,594
|
)
|
|||
Cash payments to settle contingent consideration liabilities recognized in business combinations
|
|
—
|
|
|
(1,097
|
)
|
|
(1,273
|
)
|
|||
Proceeds from the issuance of common stock, net
|
|
—
|
|
|
—
|
|
|
152,911
|
|
|||
Redemption of junior subordinated debentures, net
|
|
—
|
|
|
—
|
|
|
(10,695
|
)
|
|||
Issuance of common shares resulting from exercise of stock options, employee stock purchase plan and conversion of common stock warrants
|
|
15,903
|
|
|
28,229
|
|
|
15,828
|
|
|||
Common stock repurchases for tax withholdings related to stock-based compensation
|
|
(648
|
)
|
|
(397
|
)
|
|
(616
|
)
|
|||
Dividends paid
|
|
(50,987
|
)
|
|
(40,543
|
)
|
|
(38,568
|
)
|
|||
Net Cash Provided by Financing Activities
|
|
2,500,925
|
|
|
1,909,152
|
|
|
2,175,610
|
|
|||
Net Increase (Decrease) in Cash and Cash Equivalents
|
|
114,609
|
|
|
7,546
|
|
|
(5,750
|
)
|
|||
Cash and Cash Equivalents at Beginning of Period
|
|
277,591
|
|
|
270,045
|
|
|
275,795
|
|
|||
Cash and Cash Equivalents at End of Period
|
|
$
|
392,200
|
|
|
$
|
277,591
|
|
|
$
|
270,045
|
|
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
|
|
|
||||||
Cash paid during the year for:
|
|
|
|
|
|
|
||||||
Interest
|
|
$
|
197,911
|
|
|
$
|
112,783
|
|
|
$
|
91,390
|
|
Income taxes, net
|
|
69,118
|
|
|
76,812
|
|
|
94,888
|
|
|||
Business combinations and asset acquisitions:
|
|
|
|
|
|
|
||||||
Fair value of assets acquired, including cash and cash equivalents
|
|
485,368
|
|
|
1,022
|
|
|
882,865
|
|
|||
Value ascribed to goodwill and other intangible assets
|
|
109,548
|
|
|
999
|
|
|
27,083
|
|
|||
Fair value of liabilities assumed
|
|
423,234
|
|
|
738
|
|
|
259,631
|
|
|||
Non-cash activities
|
|
|
|
|
|
|
||||||
Transfer to other real estate owned from loans
|
|
7,936
|
|
|
15,013
|
|
|
13,352
|
|
|||
Common stock issued for acquisitions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
103
|
|
|
|
|
|
104
|
|
|
|
|
|
105
|
|
|
|
|
|
106
|
|
|
|
|
•
|
an assessment of internally-evaluated problem loans and historical loss experience;
|
•
|
changes in the composition of the loan portfolio, changes in historical loss experience;
|
•
|
changes in lending policies and procedures, including underwriting standards and collections, charge-off and recovery practices;
|
•
|
changes in experience, ability and depth of lending management and staff;
|
•
|
changes in national and local economic and business conditions and developments, including the condition of various market segments;
|
•
|
changes in the volume and severity of past due and classified loans and trends in the volume of non-accrual loans, TDRs and other loan modifications;
|
•
|
changes in the quality of the Company’s loan review system;
|
•
|
changes in the underlying collateral for collateral dependent loans; and
|
•
|
the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the bank’s existing portfolio.
|
|
107
|
|
|
|
|
|
108
|
|
|
|
|
|
109
|
|
|
|
|
|
110
|
|
|
|
|
|
111
|
|
|
|
|
|
112
|
|
|
|
|
•
|
As allowed under the guidance, for certain existing derivative instruments designated as fair value hedges, the Company transitioned the measurement methodology for the related hedged item (loans) to be in accordance with the guidance without dedesignation of the hedging relationship. This resulted in a negative cumulative basis adjustment to loans of
$116,000
with a corresponding adjustment to retained earnings.
|
•
|
No
fixed-rate, prepayable held-to-maturity securities were transferred to an available-for-sale classification.
|
•
|
The entire change in the hedging instrument included in the assessment of hedge effectiveness of fair value hedges is presented in the same income statement line as the current impact of the effective portion of such hedge, or interest income and interest expense for interest rate hedging. The Company has previously recognized this ineffectiveness within non-interest income.
|
|
113
|
|
|
|
|
|
114
|
|
|
|
|
•
|
The Company expects to utilize the following transition elections and practical expedients:
|
◦
|
Optional transition method to apply the new guidance at the date of adoption (i.e. January 1, 2019) and continue applying current lease accounting guidance for comparative periods (i.e. fiscal years 2018 and 2017).
|
◦
|
For lessee arrangements of certain banking facilities, the Company expects to elect the practical expedient to not separate non-lease components from lease components and instead to account for each separate lease and non-lease component as a single lease component.
|
◦
|
A package of practical expedients applied to leases existing prior to the effective date that must all be elected together and allow a Company to not reassess:
|
▪
|
whether any expiring or existing contracts are or contain a lease;
|
▪
|
lease classification for any expired or existing leases; and
|
▪
|
whether initial direct costs for any expired or existing leases qualify for capitalization.
|
◦
|
A practical expedient that will permit an entity to continue applying its current policy for accounting for expired or existing land easements.
|
◦
|
An accounting policy election for short-term leases (i.e. terms of 12 months or less with no purchase option expected to be exercised) to apply accounting similar to ASC 840, specifically to not recognize
separate lease liabilities and right to use assets
.
|
•
|
The Company expects to recognize at the effective date a right of use asset on the Consolidated Statements of Condition between
$150.0 million
and
$190.0 million
.
|
|
115
|
|
|
|
|
|
116
|
|
|
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
|
Amortized
Cost
|
|
Gross
unrealized
gains
|
|
Gross
unrealized
losses
|
|
Fair Value
|
|
Amortized
Cost
|
|
Gross
unrealized
gains
|
|
Gross
unrealized
losses
|
|
Fair Value
|
||||||||||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury
|
|
$
|
126,199
|
|
|
$
|
391
|
|
|
$
|
(186
|
)
|
|
$
|
126,404
|
|
|
$
|
144,904
|
|
|
$
|
—
|
|
|
$
|
(1,082
|
)
|
|
$
|
143,822
|
|
U.S. Government agencies
|
|
139,420
|
|
|
917
|
|
|
(30
|
)
|
|
140,307
|
|
|
157,638
|
|
|
2
|
|
|
(725
|
)
|
|
156,915
|
|
||||||||
Municipal
|
|
136,831
|
|
|
2,427
|
|
|
(768
|
)
|
|
138,490
|
|
|
113,197
|
|
|
2,712
|
|
|
(557
|
)
|
|
115,352
|
|
||||||||
Corporate notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Financial issuers
|
|
97,079
|
|
|
35
|
|
|
(7,069
|
)
|
|
90,045
|
|
|
30,309
|
|
|
43
|
|
|
(301
|
)
|
|
30,051
|
|
||||||||
Other
|
|
1,000
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
|
1,000
|
|
|
—
|
|
|
(1
|
)
|
|
999
|
|
||||||||
Mortgage-backed:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Mortgage-backed securities
|
|
1,641,146
|
|
|
2,510
|
|
|
(57,317
|
)
|
|
1,586,339
|
|
|
1,291,695
|
|
|
446
|
|
|
(31,955
|
)
|
|
1,260,186
|
|
||||||||
Collateralized mortgage obligations
|
|
43,819
|
|
|
500
|
|
|
(823
|
)
|
|
43,496
|
|
|
60,092
|
|
|
64
|
|
|
(617
|
)
|
|
59,539
|
|
||||||||
Equity securities
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,234
|
|
|
3,357
|
|
|
(789
|
)
|
|
36,802
|
|
||||||||
Total available-for-sale securities
|
|
$
|
2,185,494
|
|
|
$
|
6,780
|
|
|
$
|
(66,193
|
)
|
|
$
|
2,126,081
|
|
|
$
|
1,833,069
|
|
|
$
|
6,624
|
|
|
$
|
(36,027
|
)
|
|
$
|
1,803,666
|
|
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Government agencies
|
|
$
|
814,864
|
|
|
$
|
1,141
|
|
|
$
|
(28,576
|
)
|
|
$
|
787,429
|
|
|
$
|
579,062
|
|
|
$
|
23
|
|
|
$
|
(14,066
|
)
|
|
$
|
565,019
|
|
Municipal
|
|
252,575
|
|
|
1,100
|
|
|
(5,008
|
)
|
|
248,667
|
|
|
247,387
|
|
|
2,668
|
|
|
(2,558
|
)
|
|
247,497
|
|
||||||||
Total held-to-maturity securities
|
|
$
|
1,067,439
|
|
|
$
|
2,241
|
|
|
$
|
(33,584
|
)
|
|
$
|
1,036,096
|
|
|
$
|
826,449
|
|
|
$
|
2,691
|
|
|
$
|
(16,624
|
)
|
|
$
|
812,516
|
|
Equity securities with readily determinable fair value
(2)
|
|
$
|
34,410
|
|
|
$
|
1,532
|
|
|
$
|
(1,225
|
)
|
|
$
|
34,717
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Consisting entirely of residential mortgage-backed securities,
none
of which are subprime.
|
(2)
|
As a result of the adoption of ASU No. 2016-01 effective January 1, 2018, equity securities with readily determinable fair value are no longer presented within available-for-sale securities and are now presented as equity securities with readily determinable fair values in the Company's Consolidated Statements of Condition for the current period.
|
|
117
|
|
|
|
|
|
|
Continuous unrealized
losses existing for less
than 12 months
|
|
Continuous unrealized
losses existing for
greater than 12 months
|
|
Total
|
||||||||||||||||||
(Dollars in thousands)
|
|
Fair value
|
|
Unrealized
losses
|
|
Fair value
|
|
Unrealized
losses
|
|
Fair value
|
|
Unrealized
losses
|
||||||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury
|
|
$
|
5,485
|
|
|
$
|
(5
|
)
|
|
$
|
24,829
|
|
|
$
|
(181
|
)
|
|
$
|
30,314
|
|
|
$
|
(186
|
)
|
U.S. Government agencies
|
|
—
|
|
|
—
|
|
|
11,167
|
|
|
(30
|
)
|
|
11,167
|
|
|
(30
|
)
|
||||||
Municipal
|
|
10,676
|
|
|
(178
|
)
|
|
22,147
|
|
|
(590
|
)
|
|
32,823
|
|
|
(768
|
)
|
||||||
Corporate notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financial issuers
|
|
37,076
|
|
|
(2,921
|
)
|
|
42,934
|
|
|
(4,148
|
)
|
|
80,010
|
|
|
(7,069
|
)
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Mortgage-backed:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
|
114,958
|
|
|
(124
|
)
|
|
1,340,916
|
|
|
(57,193
|
)
|
|
1,455,874
|
|
|
(57,317
|
)
|
||||||
Collateralized mortgage obligations
|
|
510
|
|
|
(1
|
)
|
|
34,255
|
|
|
(822
|
)
|
|
34,765
|
|
|
(823
|
)
|
||||||
Total available-for-sale securities
|
|
$
|
168,705
|
|
|
$
|
(3,229
|
)
|
|
$
|
1,476,248
|
|
|
$
|
(62,964
|
)
|
|
$
|
1,644,953
|
|
|
$
|
(66,193
|
)
|
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agencies
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
601,238
|
|
|
$
|
(28,576
|
)
|
|
$
|
601,238
|
|
|
$
|
(28,576
|
)
|
Municipal
|
|
38,239
|
|
|
(637
|
)
|
|
158,302
|
|
|
(4,371
|
)
|
|
196,541
|
|
|
(5,008
|
)
|
||||||
Total held-to-maturity securities
|
|
$
|
38,239
|
|
|
$
|
(637
|
)
|
|
$
|
759,540
|
|
|
$
|
(32,947
|
)
|
|
$
|
797,779
|
|
|
$
|
(33,584
|
)
|
|
118
|
|
|
|
|
|
|
Continuous unrealized
losses existing for less
than 12 months
|
|
Continuous unrealized
losses existing for
greater than 12 months
|
|
Total
|
||||||||||||||||||
(Dollars in thousands)
|
|
Fair value
|
|
Unrealized
losses
|
|
Fair value
|
|
Unrealized
losses
|
|
Fair value
|
|
Unrealized
losses
|
||||||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury
|
|
$
|
24,811
|
|
|
$
|
(215
|
)
|
|
$
|
119,011
|
|
|
$
|
(867
|
)
|
|
$
|
143,822
|
|
|
$
|
(1,082
|
)
|
U.S. Government agencies
|
|
14,462
|
|
|
(69
|
)
|
|
141,471
|
|
|
(656
|
)
|
|
155,933
|
|
|
(725
|
)
|
||||||
Municipal
|
|
28,221
|
|
|
(256
|
)
|
|
15,840
|
|
|
(301
|
)
|
|
44,061
|
|
|
(557
|
)
|
||||||
Corporate notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financial issuers
|
|
1,210
|
|
|
(1
|
)
|
|
5,665
|
|
|
(300
|
)
|
|
6,875
|
|
|
(301
|
)
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
999
|
|
|
(1
|
)
|
|
999
|
|
|
(1
|
)
|
||||||
Mortgage-backed:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
|
137,255
|
|
|
(915
|
)
|
|
989,971
|
|
|
(31,040
|
)
|
|
1,127,226
|
|
|
(31,955
|
)
|
||||||
Collateralized mortgage obligations
|
|
35,038
|
|
|
(213
|
)
|
|
13,719
|
|
|
(404
|
)
|
|
48,757
|
|
|
(617
|
)
|
||||||
Equity securities
|
|
9,116
|
|
|
(343
|
)
|
|
6,054
|
|
|
(446
|
)
|
|
15,170
|
|
|
(789
|
)
|
||||||
Total available-for-sale securities
|
|
$
|
250,113
|
|
|
$
|
(2,012
|
)
|
|
$
|
1,292,730
|
|
|
$
|
(34,015
|
)
|
|
$
|
1,542,843
|
|
|
$
|
(36,027
|
)
|
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agencies
|
|
$
|
241,849
|
|
|
$
|
(3,263
|
)
|
|
$
|
300,200
|
|
|
$
|
(10,803
|
)
|
|
$
|
542,049
|
|
|
$
|
(14,066
|
)
|
Municipal
|
|
56,901
|
|
|
(1,004
|
)
|
|
52,399
|
|
|
(1,554
|
)
|
|
109,300
|
|
|
(2,558
|
)
|
||||||
Total held-to-maturity securities
|
|
$
|
298,750
|
|
|
$
|
(4,267
|
)
|
|
$
|
352,599
|
|
|
$
|
(12,357
|
)
|
|
$
|
651,349
|
|
|
$
|
(16,624
|
)
|
|
119
|
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Realized gains on investment securities
|
|
$
|
1,144
|
|
|
$
|
147
|
|
|
$
|
9,399
|
|
Realized losses on investment securities
|
|
(1,111
|
)
|
|
(102
|
)
|
|
(1,754
|
)
|
|||
Net realized gains on investment securities
|
|
33
|
|
|
$
|
45
|
|
|
$
|
7,645
|
|
|
Unrealized gains on equity securities with readily determinable fair value
|
|
2,771
|
|
|
—
|
|
|
—
|
|
|||
Unrealized losses on equity securities with readily determinable fair value
|
|
(4,910
|
)
|
|
—
|
|
|
—
|
|
|||
Net unrealized losses on equity securities with readily determinable fair value
|
|
(2,139
|
)
|
|
—
|
|
|
—
|
|
|||
Upward adjustments of equity securities without readily determinable fair values
|
|
325
|
|
|
—
|
|
|
—
|
|
|||
Downward adjustments of equity securities without readily determinable fair values
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Impairment of equity securities without readily determinable fair values
|
|
(1,117
|
)
|
|
—
|
|
|
—
|
|
|||
Adjustment and impairment, net, of equity securities without readily determinable fair values
|
|
(792
|
)
|
|
—
|
|
|
—
|
|
|||
Other than temporary impairment charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
(Losses) gains on investment securities, net
|
|
(2,898
|
)
|
|
45
|
|
|
7,645
|
|
|||
Proceeds from sales of available-for-sale securities
|
|
214,196
|
|
|
344,674
|
|
|
2,194,278
|
|
|||
Proceeds from sales of equity securities with readily determinable fair value
|
|
1,895
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from sales and capital distributions of equity securities without readily determinable fair value
|
|
1,324
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
(Dollars in thousands)
|
|
Amortized
Cost
|
|
Fair Value
|
|
Amortized
Cost
|
|
Fair Value
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
|
$
|
82,206
|
|
|
$
|
82,153
|
|
|
$
|
300,833
|
|
|
$
|
299,285
|
|
Due in one to five years
|
|
168,855
|
|
|
169,307
|
|
|
97,019
|
|
|
97,326
|
|
||||
Due in five to ten years
|
|
121,129
|
|
|
115,206
|
|
|
33,947
|
|
|
35,029
|
|
||||
Due after ten years
|
|
128,339
|
|
|
129,580
|
|
|
15,249
|
|
|
15,499
|
|
||||
Mortgage-backed
|
|
1,684,965
|
|
|
1,629,835
|
|
|
1,351,787
|
|
|
1,319,725
|
|
||||
Equity securities
(1)
|
|
—
|
|
|
—
|
|
|
34,234
|
|
|
36,802
|
|
||||
Total available-for-sale securities
|
|
$
|
2,185,494
|
|
|
$
|
2,126,081
|
|
|
$
|
1,833,069
|
|
|
$
|
1,803,666
|
|
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
|
$
|
10,009
|
|
|
$
|
9,979
|
|
|
$
|
170
|
|
|
$
|
171
|
|
Due in one to five years
|
|
29,436
|
|
|
28,995
|
|
|
38,392
|
|
|
38,012
|
|
||||
Due in five to ten years
|
|
295,897
|
|
|
290,206
|
|
|
205,227
|
|
|
203,680
|
|
||||
Due after ten years
|
|
732,097
|
|
|
706,916
|
|
|
582,660
|
|
|
570,653
|
|
||||
Total held-to-maturity securities
|
|
$
|
1,067,439
|
|
|
$
|
1,036,096
|
|
|
$
|
826,449
|
|
|
$
|
812,516
|
|
(1)
|
As a result of the adoption of ASU No. 2016-01 effective January 1, 2018, equity securities with readily determinable fair value are no longer presented within available-for-sale securities and are now presented as equity securities with readily determinable fair values in the Company's Consolidated Statements of Condition for the current period.
|
|
121
|
|
|
|
|
(Dollars in thousands)
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
Balance:
|
|
|
|
|
||||
Commercial
|
|
$
|
7,828,538
|
|
|
$
|
6,787,677
|
|
Commercial real estate
|
|
6,933,252
|
|
|
6,580,618
|
|
||
Home equity
|
|
552,343
|
|
|
663,045
|
|
||
Residential real estate
|
|
1,002,464
|
|
|
832,120
|
|
||
Premium finance receivables—commercial
|
|
2,841,659
|
|
|
2,634,565
|
|
||
Premium finance receivables—life insurance
|
|
4,541,794
|
|
|
4,035,059
|
|
||
Consumer and other
|
|
120,641
|
|
|
107,713
|
|
||
Total loans, net of unearned income
|
|
$
|
23,820,691
|
|
|
$
|
21,640,797
|
|
Mix:
|
|
|
|
|
||||
Commercial
|
|
33
|
%
|
|
31
|
%
|
||
Commercial real estate
|
|
29
|
|
|
30
|
|
||
Home equity
|
|
2
|
|
|
3
|
|
||
Residential real estate
|
|
4
|
|
|
4
|
|
||
Premium finance receivables—commercial
|
|
12
|
|
|
12
|
|
||
Premium finance receivables—life insurance
|
|
19
|
|
|
19
|
|
||
Consumer and other
|
|
1
|
|
|
1
|
|
||
Total loans, net of unearned income
|
|
100
|
%
|
|
100
|
%
|
|
122
|
|
|
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
(Dollars in thousands)
|
|
Unpaid
Principal
Balance
|
|
Carrying
Value
|
|
Unpaid
Principal
Balance
|
|
Carrying
Value
|
||||||||
PCI loans
|
|
$
|
341,555
|
|
|
$
|
318,394
|
|
|
$
|
375,237
|
|
|
$
|
350,690
|
|
(Dollars in thousands)
|
|
Delaware Place Bank
|
|
American Enterprise Bank
|
||||
Contractually required payments including interest
|
|
$
|
13,385
|
|
|
$
|
31,750
|
|
Less: Nonaccretable difference
|
|
1,197
|
|
|
3,813
|
|
||
Cash flows expected to be collected
(1)
|
|
$
|
12,188
|
|
|
$
|
27,937
|
|
Less: Accretable yield
|
|
2,205
|
|
|
3,970
|
|
||
Fair value of PCI loans acquired
|
|
$
|
9,983
|
|
|
$
|
23,967
|
|
|
|
Years Ended December 31,
|
||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Accretable yield, beginning balance
|
|
$
|
36,565
|
|
|
$
|
49,408
|
|
Acquisitions
|
|
6,175
|
|
|
426
|
|
||
Accretable yield amortized to interest income
|
|
(16,711
|
)
|
|
(21,512
|
)
|
||
Accretable yield amortized to indemnification asset/liability
(1)
|
|
—
|
|
|
(1,087
|
)
|
||
Reclassification from non-accretable difference
(2)
|
|
4,835
|
|
|
7,805
|
|
||
Increases (Decreases) in interest cash flows due to payments and changes in interest rates
|
|
4,012
|
|
|
1,525
|
|
||
Accretable yield, ending balance
|
|
$
|
34,876
|
|
|
$
|
36,565
|
|
(1)
|
Represents the portion of the current period accreted yield, resulting from lower expected losses, applied to reduce the loss share indemnification asset or increase the loss share indemnification liability.
|
(2)
|
Reclassification is the result of subsequent increases in expected principal cash flows.
|
|
123
|
|
|
|
|
As of December 31, 2018
(Dollars in thousands)
|
|
Nonaccrual
|
|
90+ days
and still
accruing
|
|
60-89
days past
due
|
|
30-59
days past
due
|
|
Current
|
|
Total Loans
|
||||||||||||
Loan Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial, industrial and other
|
|
$
|
34,298
|
|
|
$
|
—
|
|
|
$
|
1,451
|
|
|
$
|
21,618
|
|
|
$
|
5,062,729
|
|
|
$
|
5,120,096
|
|
Franchise
|
|
16,051
|
|
|
—
|
|
|
—
|
|
|
8,738
|
|
|
924,190
|
|
|
948,979
|
|
||||||
Mortgage warehouse lines of credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
144,199
|
|
|
144,199
|
|
||||||
Asset-based lending
|
|
635
|
|
|
—
|
|
|
200
|
|
|
3,156
|
|
|
1,022,065
|
|
|
1,026,056
|
|
||||||
Leases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,250
|
|
|
564,430
|
|
|
565,680
|
|
||||||
PCI - commercial
(1)
|
|
—
|
|
|
3,313
|
|
|
—
|
|
|
99
|
|
|
20,116
|
|
|
23,528
|
|
||||||
Total commercial
|
|
$
|
50,984
|
|
|
$
|
3,313
|
|
|
$
|
1,651
|
|
|
$
|
34,861
|
|
|
$
|
7,737,729
|
|
|
$
|
7,828,538
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
|
1,554
|
|
|
—
|
|
|
—
|
|
|
9,424
|
|
|
749,846
|
|
|
760,824
|
|
||||||
Land
|
|
107
|
|
|
—
|
|
|
170
|
|
|
107
|
|
|
141,097
|
|
|
141,481
|
|
||||||
Office
|
|
3,629
|
|
|
—
|
|
|
877
|
|
|
5,077
|
|
|
929,739
|
|
|
939,322
|
|
||||||
Industrial
|
|
285
|
|
|
—
|
|
|
—
|
|
|
16,596
|
|
|
885,367
|
|
|
902,248
|
|
||||||
Retail
|
|
10,753
|
|
|
—
|
|
|
1,890
|
|
|
1,729
|
|
|
878,106
|
|
|
892,478
|
|
||||||
Multi-family
|
|
311
|
|
|
—
|
|
|
77
|
|
|
5,575
|
|
|
970,597
|
|
|
976,560
|
|
||||||
Mixed use and other
|
|
2,490
|
|
|
—
|
|
|
1,617
|
|
|
8,983
|
|
|
2,192,105
|
|
|
2,205,195
|
|
||||||
PCI - commercial real estate
(1)
|
|
—
|
|
|
6,241
|
|
|
6,195
|
|
|
4,075
|
|
|
98,633
|
|
|
115,144
|
|
||||||
Total commercial real estate
|
|
$
|
19,129
|
|
|
$
|
6,241
|
|
|
$
|
10,826
|
|
|
$
|
51,566
|
|
|
$
|
6,845,490
|
|
|
$
|
6,933,252
|
|
Home equity
|
|
7,147
|
|
|
—
|
|
|
131
|
|
|
3,105
|
|
|
541,960
|
|
|
552,343
|
|
||||||
Residential real estate, including PCI
|
|
16,383
|
|
|
1,292
|
|
|
1,692
|
|
|
6,171
|
|
|
976,926
|
|
|
1,002,464
|
|
||||||
Premium finance receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial insurance loans
|
|
11,335
|
|
|
7,799
|
|
|
11,382
|
|
|
15,085
|
|
|
2,796,058
|
|
|
2,841,659
|
|
||||||
Life insurance loans
|
|
—
|
|
|
—
|
|
|
8,407
|
|
|
24,628
|
|
|
4,340,856
|
|
|
4,373,891
|
|
||||||
PCI - life insurance loans
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
167,903
|
|
|
167,903
|
|
||||||
Consumer and other, including PCI
|
|
348
|
|
|
227
|
|
|
87
|
|
|
733
|
|
|
119,246
|
|
|
120,641
|
|
||||||
Total loans, net of unearned income
|
|
$
|
105,326
|
|
|
$
|
18,872
|
|
|
$
|
34,176
|
|
|
$
|
136,149
|
|
|
$
|
23,526,168
|
|
|
$
|
23,820,691
|
|
(1)
|
PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments. See Note 4
,
“Loans,” for further discussion of these purchased loans.
|
|
124
|
|
|
|
|
As of December 31, 2017
(Dollars in thousands)
|
|
Nonaccrual
|
|
90+ days
and still
accruing
|
|
60-89
days past
due
|
|
30-59
days past
due
|
|
Current
|
|
Total Loans
|
||||||||||||
Loan Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial, industrial and other
|
|
$
|
11,260
|
|
|
$
|
—
|
|
|
$
|
3,746
|
|
|
$
|
13,392
|
|
|
$
|
4,314,107
|
|
|
$
|
4,342,505
|
|
Franchise
|
|
2,447
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
845,150
|
|
|
847,597
|
|
||||||
Mortgage warehouse lines of credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,000
|
|
|
190,523
|
|
|
194,523
|
|
||||||
Asset-based lending
|
|
1,550
|
|
|
—
|
|
|
283
|
|
|
10,057
|
|
|
968,576
|
|
|
980,466
|
|
||||||
Leases
|
|
439
|
|
|
—
|
|
|
3
|
|
|
1,958
|
|
|
410,772
|
|
|
413,172
|
|
||||||
PCI - commercial
(1)
|
|
—
|
|
|
877
|
|
|
186
|
|
|
—
|
|
|
8,351
|
|
|
9,414
|
|
||||||
Total commercial
|
|
$
|
15,696
|
|
|
$
|
877
|
|
|
$
|
4,218
|
|
|
$
|
29,407
|
|
|
$
|
6,737,479
|
|
|
$
|
6,787,677
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
|
$
|
3,143
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
200
|
|
|
$
|
742,171
|
|
|
$
|
745,514
|
|
Land
|
|
188
|
|
|
—
|
|
|
—
|
|
|
5,156
|
|
|
121,140
|
|
|
126,484
|
|
||||||
Office
|
|
2,438
|
|
|
—
|
|
|
—
|
|
|
4,458
|
|
|
887,937
|
|
|
894,833
|
|
||||||
Industrial
|
|
811
|
|
|
—
|
|
|
—
|
|
|
2,412
|
|
|
879,796
|
|
|
883,019
|
|
||||||
Retail
|
|
12,328
|
|
|
—
|
|
|
668
|
|
|
148
|
|
|
938,383
|
|
|
951,527
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,034
|
|
|
914,610
|
|
|
915,644
|
|
||||||
Mixed use and other
|
|
3,140
|
|
|
—
|
|
|
1,423
|
|
|
9,641
|
|
|
1,921,501
|
|
|
1,935,705
|
|
||||||
PCI - commercial real estate
(1)
|
|
—
|
|
|
7,135
|
|
|
2,255
|
|
|
6,277
|
|
|
112,225
|
|
|
127,892
|
|
||||||
Total commercial real estate
|
|
$
|
22,048
|
|
|
$
|
7,135
|
|
|
$
|
4,346
|
|
|
$
|
29,326
|
|
|
$
|
6,517,763
|
|
|
$
|
6,580,618
|
|
Home equity
|
|
8,978
|
|
|
—
|
|
|
518
|
|
|
4,634
|
|
|
648,915
|
|
|
663,045
|
|
||||||
Residential real estate, including PCI
|
|
17,977
|
|
|
5,304
|
|
|
1,303
|
|
|
8,378
|
|
|
799,158
|
|
|
832,120
|
|
||||||
Premium finance receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial insurance loans
|
|
12,163
|
|
|
9,242
|
|
|
17,796
|
|
|
15,849
|
|
|
2,579,515
|
|
|
2,634,565
|
|
||||||
Life insurance loans
|
|
—
|
|
|
—
|
|
|
4,837
|
|
|
10,017
|
|
|
3,820,936
|
|
|
3,835,790
|
|
||||||
PCI - life insurance loans
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
199,269
|
|
|
199,269
|
|
||||||
Consumer and other, including PCI
|
|
740
|
|
|
101
|
|
|
242
|
|
|
727
|
|
|
105,903
|
|
|
107,713
|
|
||||||
Total loans, net of unearned income, excluding covered loans
|
|
77,602
|
|
|
22,659
|
|
|
33,260
|
|
|
98,338
|
|
|
21,408,938
|
|
|
21,640,797
|
|
(1)
|
PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments. See Note 4
,
“Loans,” for further discussion of these purchased loans.
|
|
125
|
|
|
|
|
|
126
|
|
|
|
|
|
|
Performing
|
|
Non-performing
|
|
Total
|
||||||||||||||||||
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
Loan Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial, industrial and other
|
|
$
|
5,085,798
|
|
|
$
|
4,331,245
|
|
|
$
|
34,298
|
|
|
$
|
11,260
|
|
|
$
|
5,120,096
|
|
|
$
|
4,342,505
|
|
Franchise
|
|
932,928
|
|
|
845,150
|
|
|
16,051
|
|
|
2,447
|
|
|
948,979
|
|
|
847,597
|
|
||||||
Mortgage warehouse lines of credit
|
|
144,199
|
|
|
194,523
|
|
|
—
|
|
|
—
|
|
|
144,199
|
|
|
194,523
|
|
||||||
Asset-based lending
|
|
1,025,421
|
|
|
978,916
|
|
|
635
|
|
|
1,550
|
|
|
1,026,056
|
|
|
980,466
|
|
||||||
Leases
|
|
565,680
|
|
|
412,733
|
|
|
—
|
|
|
439
|
|
|
565,680
|
|
|
413,172
|
|
||||||
PCI - commercial
(1)
|
|
23,528
|
|
|
9,414
|
|
|
—
|
|
|
—
|
|
|
23,528
|
|
|
9,414
|
|
||||||
Total commercial
|
|
$
|
7,777,554
|
|
|
$
|
6,771,981
|
|
|
$
|
50,984
|
|
|
$
|
15,696
|
|
|
$
|
7,828,538
|
|
|
$
|
6,787,677
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
|
759,270
|
|
|
742,371
|
|
|
1,554
|
|
|
3,143
|
|
|
760,824
|
|
|
745,514
|
|
||||||
Land
|
|
141,374
|
|
|
126,296
|
|
|
107
|
|
|
188
|
|
|
141,481
|
|
|
126,484
|
|
||||||
Office
|
|
935,693
|
|
|
892,395
|
|
|
3,629
|
|
|
2,438
|
|
|
939,322
|
|
|
894,833
|
|
||||||
Industrial
|
|
901,963
|
|
|
882,208
|
|
|
285
|
|
|
811
|
|
|
902,248
|
|
|
883,019
|
|
||||||
Retail
|
|
881,725
|
|
|
939,199
|
|
|
10,753
|
|
|
12,328
|
|
|
892,478
|
|
|
951,527
|
|
||||||
Multi-family
|
|
976,249
|
|
|
915,644
|
|
|
311
|
|
|
—
|
|
|
976,560
|
|
|
915,644
|
|
||||||
Mixed use and other
|
|
2,202,705
|
|
|
1,932,565
|
|
|
2,490
|
|
|
3,140
|
|
|
2,205,195
|
|
|
1,935,705
|
|
||||||
PCI - commercial real estate
(1)
|
|
115,144
|
|
|
127,892
|
|
|
—
|
|
|
—
|
|
|
115,144
|
|
|
127,892
|
|
||||||
Total commercial real estate
|
|
$
|
6,914,123
|
|
|
$
|
6,558,570
|
|
|
$
|
19,129
|
|
|
$
|
22,048
|
|
|
$
|
6,933,252
|
|
|
$
|
6,580,618
|
|
Home equity
|
|
545,196
|
|
|
654,067
|
|
|
7,147
|
|
|
8,978
|
|
|
552,343
|
|
|
663,045
|
|
||||||
Residential real estate, including PCI
|
|
986,081
|
|
|
810,865
|
|
|
16,383
|
|
|
21,255
|
|
|
1,002,464
|
|
|
832,120
|
|
||||||
Premium finance receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial insurance loans
|
|
2,822,525
|
|
|
2,613,160
|
|
|
19,134
|
|
|
21,405
|
|
|
2,841,659
|
|
|
2,634,565
|
|
||||||
Life insurance loans
|
|
4,373,891
|
|
|
3,835,790
|
|
|
—
|
|
|
—
|
|
|
4,373,891
|
|
|
3,835,790
|
|
||||||
PCI - life insurance loans
(1)
|
|
167,903
|
|
|
199,269
|
|
|
—
|
|
|
—
|
|
|
167,903
|
|
|
199,269
|
|
||||||
Consumer and other, including PCI
|
|
120,184
|
|
|
106,933
|
|
|
457
|
|
|
780
|
|
|
120,641
|
|
|
107,713
|
|
||||||
Total loans, net of unearned income, excluding covered loans
|
|
$
|
23,707,457
|
|
|
$
|
21,550,635
|
|
|
$
|
113,234
|
|
|
$
|
90,162
|
|
|
$
|
23,820,691
|
|
|
$
|
21,640,797
|
|
(1)
|
PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. See Note 4
,
“Loans,” for further discussion of these purchased loans.
|
|
127
|
|
|
|
|
Year Ended
December 31, 2018
(Dollars in thousands)
|
|
Commercial
|
|
Commercial
Real Estate
|
|
Home
Equity
|
|
Residential
Real Estate
|
|
Premium
Finance
Receivable
|
|
Consumer
and Other
|
|
Total,
Excluding
Covered
Loans
|
||||||||||||||
Allowance for credit losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Allowance for loan losses at beginning of period
|
|
$
|
57,811
|
|
|
$
|
55,227
|
|
|
$
|
10,493
|
|
|
$
|
6,688
|
|
|
$
|
6,846
|
|
|
$
|
840
|
|
|
$
|
137,905
|
|
Other adjustments
|
|
(3
|
)
|
|
(85
|
)
|
|
(5
|
)
|
|
(25
|
)
|
|
(63
|
)
|
|
—
|
|
|
(181
|
)
|
|||||||
Reclassification to/from allowance for unfunded lending-related commitments
|
|
—
|
|
|
(126
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(126
|
)
|
|||||||
Charge-offs
|
|
(14,532
|
)
|
|
(1,395
|
)
|
|
(2,245
|
)
|
|
(1,355
|
)
|
|
(12,228
|
)
|
|
(880
|
)
|
|
(32,635
|
)
|
|||||||
Recoveries
|
|
1,457
|
|
|
5,631
|
|
|
541
|
|
|
2,075
|
|
|
3,069
|
|
|
202
|
|
|
12,975
|
|
|||||||
Provision for credit losses
|
|
23,093
|
|
|
1,015
|
|
|
(277
|
)
|
|
(189
|
)
|
|
10,091
|
|
|
1,099
|
|
|
34,832
|
|
|||||||
Allowance for loan losses at period end
|
|
$
|
67,826
|
|
|
$
|
60,267
|
|
|
$
|
8,507
|
|
|
$
|
7,194
|
|
|
$
|
7,715
|
|
|
$
|
1,261
|
|
|
$
|
152,770
|
|
Allowance for unfunded lending-related commitments at period end
|
|
—
|
|
|
1,394
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,394
|
|
|||||||
Allowance for credit losses at period end
|
|
$
|
67,826
|
|
|
$
|
61,661
|
|
|
$
|
8,507
|
|
|
$
|
7,194
|
|
|
$
|
7,715
|
|
|
$
|
1,261
|
|
|
$
|
154,164
|
|
By measurement method:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
|
6,558
|
|
|
4,287
|
|
|
282
|
|
|
204
|
|
|
—
|
|
|
116
|
|
|
11,447
|
|
|||||||
Collectively evaluated for impairment
|
|
60,749
|
|
|
57,329
|
|
|
8,225
|
|
|
6,894
|
|
|
7,715
|
|
|
1,145
|
|
|
142,057
|
|
|||||||
Loans acquired with deteriorated credit quality
|
|
519
|
|
|
45
|
|
|
—
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
660
|
|
|||||||
Loans at period end:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
|
$
|
59,529
|
|
|
$
|
33,274
|
|
|
$
|
12,255
|
|
|
$
|
22,064
|
|
|
$
|
—
|
|
|
$
|
397
|
|
|
$
|
127,519
|
|
Collectively evaluated for impairment
|
|
7,745,482
|
|
|
6,784,834
|
|
|
540,088
|
|
|
877,526
|
|
|
7,215,550
|
|
|
117,441
|
|
|
23,280,921
|
|
|||||||
Loans acquired with deteriorated credit quality
|
|
23,527
|
|
|
115,144
|
|
|
—
|
|
|
9,017
|
|
|
167,903
|
|
|
2,803
|
|
|
318,394
|
|
|||||||
Loan held at fair value
|
|
—
|
|
|
—
|
|
|
—
|
|
|
93,857
|
|
|
—
|
|
|
—
|
|
|
93,857
|
|
Year Ended
December 31, 2017
(Dollars in thousands)
|
|
Commercial
|
|
Commercial
Real Estate
|
|
Home
Equity
|
|
Residential
Real Estate
|
|
Premium
Finance
Receivable
|
|
Consumer
and Other
|
|
Total,
Excluding
Covered
Loans
|
||||||||||||||
Allowance for credit losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Allowance for loan losses at beginning of period
|
|
$
|
44,493
|
|
|
$
|
51,422
|
|
|
$
|
11,774
|
|
|
$
|
5,714
|
|
|
$
|
7,625
|
|
|
$
|
1,263
|
|
|
$
|
122,291
|
|
Other adjustments
(1)
|
|
16
|
|
|
(155
|
)
|
|
167
|
|
|
356
|
|
|
138
|
|
|
51
|
|
|
573
|
|
|||||||
Reclassification to/from allowance for unfunded lending-related commitments
|
|
500
|
|
|
(431
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
69
|
|
|||||||
Charge-offs
|
|
(5,159
|
)
|
|
(4,236
|
)
|
|
(3,952
|
)
|
|
(1,284
|
)
|
|
(7,335
|
)
|
|
(729
|
)
|
|
(22,695
|
)
|
|||||||
Recoveries
|
|
1,870
|
|
|
2,190
|
|
|
746
|
|
|
452
|
|
|
2,128
|
|
|
299
|
|
|
7,685
|
|
|||||||
Provision for credit losses
|
|
16,091
|
|
|
6,437
|
|
|
1,758
|
|
|
1,450
|
|
|
4,290
|
|
|
(44
|
)
|
|
29,982
|
|
|||||||
Allowance for loan losses at period end
|
|
$
|
57,811
|
|
|
$
|
55,227
|
|
|
$
|
10,493
|
|
|
$
|
6,688
|
|
|
$
|
6,846
|
|
|
$
|
840
|
|
|
$
|
137,905
|
|
Allowance for unfunded lending-related commitments at period end
|
|
—
|
|
|
1,269
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,269
|
|
|||||||
Allowance for credit losses at period end
|
|
$
|
57,811
|
|
|
$
|
56,496
|
|
|
$
|
10,493
|
|
|
$
|
6,688
|
|
|
$
|
6,846
|
|
|
$
|
840
|
|
|
$
|
139,174
|
|
By measurement method:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
|
4,464
|
|
|
2,177
|
|
|
784
|
|
|
586
|
|
|
—
|
|
|
26
|
|
|
8,037
|
|
|||||||
Collectively evaluated for impairment
|
|
52,820
|
|
|
53,938
|
|
|
9,709
|
|
|
5,979
|
|
|
6,846
|
|
|
814
|
|
|
130,106
|
|
|||||||
Loans acquired with deteriorated credit quality
|
|
527
|
|
|
381
|
|
|
—
|
|
|
123
|
|
|
—
|
|
|
—
|
|
|
1,031
|
|
|||||||
Loans at period end:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
|
$
|
35,612
|
|
|
$
|
38,534
|
|
|
$
|
9,254
|
|
|
$
|
21,253
|
|
|
$
|
—
|
|
|
$
|
759
|
|
|
$
|
105,412
|
|
Collectively evaluated for impairment
|
|
6,742,651
|
|
|
6,414,192
|
|
|
653,791
|
|
|
765,149
|
|
|
6,470,355
|
|
|
104,840
|
|
|
21,150,978
|
|
|||||||
Loans acquired with deteriorated credit quality
|
|
9,414
|
|
|
127,892
|
|
|
—
|
|
|
12,001
|
|
|
199,269
|
|
|
2,114
|
|
|
350,690
|
|
|||||||
Loan held at fair value
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,717
|
|
|
—
|
|
|
—
|
|
|
33,717
|
|
(1)
|
Includes
$742,000
of allowance for covered loan losses reclassified as a result of the termination of all existing loss share agreements with the FDIC during the fourth quarter of 2017.
|
|
128
|
|
|
|
|
|
|
Year Ended
|
||
|
|
December 31,
|
||
(Dollars in thousands)
|
|
2017
|
||
Balance at beginning of period
|
|
$
|
1,322
|
|
Allowance for covered loan losses transferred to allowance for loan losses subsequent to loss share termination or expiration
|
|
(742
|
)
|
|
Provision for covered loan losses before benefit attributable to FDIC loss share agreements
|
|
(1,063
|
)
|
|
Benefit attributable to FDIC loss share agreements
|
|
1,592
|
|
|
Net provision for covered loan losses and transfer from allowance for covered loan losses to allowance for loan losses
|
|
$
|
(213
|
)
|
Increase in FDIC indemnification liability
|
|
(1,592
|
)
|
|
Loans charged-off
|
|
(517
|
)
|
|
Recoveries of loans charged-off
|
|
1,000
|
|
|
Net recoveries
|
|
$
|
483
|
|
Balance at end of period
|
|
$
|
—
|
|
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Impaired loans (included in non-performing and restructured loans):
|
|
|
|
|
||||
Impaired loans with an allowance for loan loss required
(1)
|
|
$
|
60,219
|
|
|
$
|
36,084
|
|
Impaired loans with no allowance for loan loss required
|
|
67,050
|
|
|
69,004
|
|
||
Total impaired loans
(2)
|
|
$
|
127,269
|
|
|
$
|
105,088
|
|
Allowance for loan losses related to impaired loans
|
|
$
|
11,437
|
|
|
$
|
8,023
|
|
TDRs
|
|
66,102
|
|
|
49,786
|
|
||
Reduction of interest income from non-accrual loans
|
|
3,422
|
|
|
2,373
|
|
||
Interest income recognized on impaired loans
|
|
7,347
|
|
|
6,298
|
|
(1)
|
These impaired loans require an allowance for loan losses because the estimated fair value of the loans or related collateral is less than the recorded investment in the loans.
|
(2)
|
Impaired loans are considered by the Company to be non-accrual loans, TDRs or loans with principal and/or interest at risk, even if the loan is current with all payments of principal and interest.
|
|
129
|
|
|
|
|
|
|
As of
|
|
For the Year Ended
|
||||||||||||||||
December 31, 2018
(Dollars in thousands)
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest Income
Recognized
|
||||||||||
Impaired loans with a related ASC 310 allowance recorded
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, industrial and other
|
|
$
|
16,703
|
|
|
$
|
17,029
|
|
|
$
|
4,866
|
|
|
$
|
17,868
|
|
|
$
|
1,181
|
|
Franchise
|
|
16,021
|
|
|
16,256
|
|
|
1,375
|
|
|
16,221
|
|
|
909
|
|
|||||
Asset-based lending
|
|
557
|
|
|
557
|
|
|
317
|
|
|
689
|
|
|
50
|
|
|||||
Leases
|
|
1,730
|
|
|
1,730
|
|
|
—
|
|
|
1,812
|
|
|
91
|
|
|||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
|
1,554
|
|
|
1,554
|
|
|
550
|
|
|
1,554
|
|
|
76
|
|
|||||
Land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Office
|
|
573
|
|
|
638
|
|
|
21
|
|
|
587
|
|
|
25
|
|
|||||
Industrial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Retail
|
|
14,633
|
|
|
14,633
|
|
|
3,413
|
|
|
14,694
|
|
|
676
|
|
|||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mixed use and other
|
|
1,188
|
|
|
1,221
|
|
|
293
|
|
|
1,354
|
|
|
66
|
|
|||||
Home equity
|
|
3,133
|
|
|
3,470
|
|
|
282
|
|
|
3,165
|
|
|
131
|
|
|||||
Residential real estate
|
|
4,011
|
|
|
4,263
|
|
|
204
|
|
|
4,056
|
|
|
159
|
|
|||||
Consumer and other
|
|
116
|
|
|
129
|
|
|
116
|
|
|
119
|
|
|
7
|
|
|||||
Impaired loans with no related ASC 310 allowance recorded
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, industrial and other
|
|
$
|
18,314
|
|
|
$
|
21,501
|
|
|
$
|
—
|
|
|
$
|
20,547
|
|
|
$
|
1,143
|
|
Franchise
|
|
5,152
|
|
|
5,154
|
|
|
—
|
|
|
5,320
|
|
|
403
|
|
|||||
Asset-based lending
|
|
207
|
|
|
601
|
|
|
—
|
|
|
569
|
|
|
51
|
|
|||||
Leases
|
|
845
|
|
|
879
|
|
|
—
|
|
|
936
|
|
|
56
|
|
|||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
|
1,117
|
|
|
1,117
|
|
|
—
|
|
|
1,218
|
|
|
52
|
|
|||||
Land
|
|
3,396
|
|
|
3,491
|
|
|
—
|
|
|
3,751
|
|
|
198
|
|
|||||
Office
|
|
3,629
|
|
|
3,642
|
|
|
—
|
|
|
3,651
|
|
|
184
|
|
|||||
Industrial
|
|
322
|
|
|
450
|
|
|
—
|
|
|
363
|
|
|
30
|
|
|||||
Retail
|
|
1,592
|
|
|
1,945
|
|
|
—
|
|
|
1,699
|
|
|
110
|
|
|||||
Multi-family
|
|
1,498
|
|
|
1,595
|
|
|
—
|
|
|
1,529
|
|
|
55
|
|
|||||
Mixed use and other
|
|
3,522
|
|
|
3,836
|
|
|
—
|
|
|
3,611
|
|
|
227
|
|
|||||
Home equity
|
|
9,122
|
|
|
12,383
|
|
|
—
|
|
|
9,323
|
|
|
564
|
|
|||||
Residential real estate
|
|
18,053
|
|
|
20,765
|
|
|
—
|
|
|
18,552
|
|
|
883
|
|
|||||
Consumer and other
|
|
281
|
|
|
407
|
|
|
—
|
|
|
293
|
|
|
20
|
|
|||||
Total loans, net of unearned income
|
|
$
|
127,269
|
|
|
$
|
139,246
|
|
|
$
|
11,437
|
|
|
$
|
133,481
|
|
|
$
|
7,347
|
|
|
130
|
|
|
|
|
|
|
As of
|
|
For the Year Ended
|
||||||||||||||||
December 31, 2017
(Dollars in thousands)
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest Income
Recognized
|
||||||||||
Impaired loans with a related ASC 310 allowance recorded
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, industrial and other
|
|
$
|
6,233
|
|
|
$
|
7,323
|
|
|
$
|
3,951
|
|
|
$
|
7,220
|
|
|
$
|
452
|
|
Franchise
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Asset-based lending
|
|
948
|
|
|
949
|
|
|
355
|
|
|
1,302
|
|
|
72
|
|
|||||
Leases
|
|
2,331
|
|
|
2,337
|
|
|
158
|
|
|
2,463
|
|
|
117
|
|
|||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
|
3,097
|
|
|
3,897
|
|
|
403
|
|
|
3,690
|
|
|
197
|
|
|||||
Land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|||||
Office
|
|
471
|
|
|
471
|
|
|
5
|
|
|
481
|
|
|
24
|
|
|||||
Industrial
|
|
408
|
|
|
408
|
|
|
40
|
|
|
414
|
|
|
25
|
|
|||||
Retail
|
|
15,599
|
|
|
15,657
|
|
|
1,336
|
|
|
15,736
|
|
|
624
|
|
|||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mixed use and other
|
|
1,567
|
|
|
1,586
|
|
|
379
|
|
|
1,599
|
|
|
77
|
|
|||||
Home equity
|
|
1,606
|
|
|
1,869
|
|
|
784
|
|
|
1,626
|
|
|
81
|
|
|||||
Residential real estate
|
|
3,798
|
|
|
3,910
|
|
|
586
|
|
|
3,790
|
|
|
146
|
|
|||||
Consumer and other
|
|
26
|
|
|
28
|
|
|
26
|
|
|
27
|
|
|
2
|
|
|||||
Impaired loans with no related ASC 310 allowance recorded
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, industrial and other
|
|
$
|
8,460
|
|
|
$
|
12,259
|
|
|
$
|
—
|
|
|
$
|
10,170
|
|
|
$
|
683
|
|
Franchise
|
|
16,256
|
|
|
16,256
|
|
|
—
|
|
|
17,089
|
|
|
780
|
|
|||||
Asset-based lending
|
|
602
|
|
|
602
|
|
|
—
|
|
|
688
|
|
|
40
|
|
|||||
Leases
|
|
782
|
|
|
782
|
|
|
—
|
|
|
845
|
|
|
49
|
|
|||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
|
1,367
|
|
|
1,678
|
|
|
—
|
|
|
1,555
|
|
|
84
|
|
|||||
Land
|
|
3,961
|
|
|
4,192
|
|
|
—
|
|
|
4,129
|
|
|
182
|
|
|||||
Office
|
|
2,438
|
|
|
6,140
|
|
|
—
|
|
|
3,484
|
|
|
330
|
|
|||||
Industrial
|
|
403
|
|
|
2,010
|
|
|
—
|
|
|
1,849
|
|
|
174
|
|
|||||
Retail
|
|
2,393
|
|
|
3,538
|
|
|
—
|
|
|
2,486
|
|
|
221
|
|
|||||
Multi-family
|
|
1,231
|
|
|
2,078
|
|
|
—
|
|
|
1,246
|
|
|
76
|
|
|||||
Mixed use and other
|
|
5,275
|
|
|
6,731
|
|
|
—
|
|
|
5,559
|
|
|
351
|
|
|||||
Home equity
|
|
7,648
|
|
|
11,648
|
|
|
—
|
|
|
9,114
|
|
|
603
|
|
|||||
Residential real estate
|
|
17,455
|
|
|
20,327
|
|
|
—
|
|
|
17,926
|
|
|
860
|
|
|||||
Consumer and other
|
|
733
|
|
|
890
|
|
|
—
|
|
|
773
|
|
|
48
|
|
|||||
Total loans, net of unearned income
|
|
$
|
105,088
|
|
|
$
|
127,566
|
|
|
$
|
8,023
|
|
|
$
|
115,261
|
|
|
$
|
6,298
|
|
|
131
|
|
|
|
|
|
132
|
|
|
|
|
Year ended
December 31, 2018
|
|
Total
(1)(2)
|
|
Extension at
Below Market
Terms
(2)
|
|
Reduction of
Interest Rate
(2)
|
|
Modification to
Interest-only
Payments
(2)
|
|
Forgiveness of Debt
(2)
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial, industrial and other
|
|
4
|
|
|
$
|
13,441
|
|
|
3
|
|
|
$
|
691
|
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
12,750
|
|
|
—
|
|
|
$
|
—
|
|
Franchise
|
|
3
|
|
|
5,157
|
|
|
1
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
5,122
|
|
|
—
|
|
|
—
|
|
|||||
Asset-based lending
|
|
1
|
|
|
130
|
|
|
1
|
|
|
130
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Leases
|
|
1
|
|
|
239
|
|
|
1
|
|
|
239
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Office
|
|
1
|
|
|
59
|
|
|
1
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Industrial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mixed use and other
|
|
2
|
|
|
455
|
|
|
2
|
|
|
455
|
|
|
1
|
|
|
85
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential real estate and other
|
|
59
|
|
|
9,762
|
|
|
58
|
|
|
9,523
|
|
|
27
|
|
|
2,789
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
239
|
|
|||||
Total loans
|
|
71
|
|
|
$
|
29,243
|
|
|
67
|
|
|
$
|
11,132
|
|
|
28
|
|
|
$
|
2,874
|
|
|
3
|
|
|
$
|
17,872
|
|
|
1
|
|
|
$
|
239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Year ended
December 31, 2017
|
|
Total
(1)(2)
|
|
Extension at
Below Market
Terms
(2)
|
|
Reduction of
Interest Rate
(2)
|
|
Modification to
Interest-only
Payments
(2)
|
|
Forgiveness of Debt
(2)
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial, industrial and other
|
|
5
|
|
|
$
|
3,775
|
|
|
1
|
|
|
$
|
95
|
|
|
1
|
|
|
$
|
2,272
|
|
|
3
|
|
|
$
|
1,408
|
|
|
—
|
|
|
$
|
—
|
|
Franchise
|
|
3
|
|
|
16,256
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
16,256
|
|
|
—
|
|
|
—
|
|
|||||
Asset-based lending
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Leases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Office
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Industrial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mixed use and other
|
|
1
|
|
|
1,245
|
|
|
1
|
|
|
1,245
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential real estate and other
|
|
12
|
|
|
3,049
|
|
|
10
|
|
|
2,925
|
|
|
8
|
|
|
2,643
|
|
|
1
|
|
|
55
|
|
|
1
|
|
|
69
|
|
|||||
Total loans
|
|
21
|
|
|
$
|
24,325
|
|
|
12
|
|
|
$
|
4,265
|
|
|
9
|
|
|
$
|
4,915
|
|
|
7
|
|
|
$
|
17,719
|
|
|
1
|
|
|
$
|
69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Year ended
December 31, 2016
|
|
Total
(1)(2)
|
|
Extension at
Below Market
Terms
(2)
|
|
Reduction of
Interest Rate
(2)
|
|
Modification to
Interest-only
Payments
(2)
|
|
Forgiveness of Debt
(2)
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial, industrial and other
|
|
3
|
|
|
$
|
345
|
|
|
3
|
|
|
$
|
345
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
275
|
|
Franchise
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Asset-based lending
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Leases
|
|
2
|
|
|
2,949
|
|
|
2
|
|
|
2,949
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Office
|
|
1
|
|
|
450
|
|
|
1
|
|
|
450
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Industrial
|
|
6
|
|
|
7,921
|
|
|
6
|
|
|
7,921
|
|
|
3
|
|
|
7,196
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mixed use and other
|
|
2
|
|
|
150
|
|
|
2
|
|
|
150
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential real estate and other
|
|
7
|
|
|
1,082
|
|
|
5
|
|
|
841
|
|
|
6
|
|
|
850
|
|
|
2
|
|
|
470
|
|
|
—
|
|
|
—
|
|
|||||
Total loans
|
|
21
|
|
|
$
|
12,897
|
|
|
19
|
|
|
$
|
12,656
|
|
|
9
|
|
|
$
|
8,046
|
|
|
2
|
|
|
$
|
470
|
|
|
1
|
|
|
$
|
275
|
|
(1)
|
TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above.
|
(2)
|
Balances represent the recorded investment in the loan at the time of the restructuring.
|
|
133
|
|
|
|
|
|
|
Year Ended December 31, 2018
|
|
Year Ended December 31, 2017
|
|
Year Ended December 31, 2016
|
||||||||||||||||||||||||||||||||||||
|
|
Total
(1)(3)
|
|
Payments in
Default
(2)(3)
|
|
Total
(1)(3)
|
|
Payments in
Default
(2)(3)
|
|
Total
(1)(3)
|
|
Payments in
Default
(2)(3)
|
||||||||||||||||||||||||||||||
(Dollars in thousands)
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
||||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial, industrial and other
|
|
4
|
|
|
$
|
13,441
|
|
|
2
|
|
|
$
|
174
|
|
|
5
|
|
|
$
|
3,775
|
|
|
4
|
|
|
$
|
3,681
|
|
|
3
|
|
|
$
|
345
|
|
|
1
|
|
|
$
|
28
|
|
Franchise
|
|
3
|
|
|
5,157
|
|
|
2
|
|
|
5,122
|
|
|
3
|
|
|
16,256
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Asset-based lending
|
|
1
|
|
|
130
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Leases
|
|
1
|
|
|
239
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2,949
|
|
|
—
|
|
|
—
|
|
||||||
Commercial real-estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Office
|
|
1
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
450
|
|
|
1
|
|
|
450
|
|
||||||
Industrial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
7,921
|
|
|
5
|
|
|
7,347
|
|
||||||
Mixed use and other
|
|
2
|
|
|
455
|
|
|
2
|
|
|
455
|
|
|
1
|
|
|
1,245
|
|
|
1
|
|
|
1,245
|
|
|
2
|
|
|
150
|
|
|
1
|
|
|
16
|
|
||||||
Residential real estate and other
|
|
59
|
|
|
9,762
|
|
|
9
|
|
|
1,957
|
|
|
12
|
|
|
3,049
|
|
|
3
|
|
|
2,052
|
|
|
7
|
|
|
1,082
|
|
|
—
|
|
|
—
|
|
||||||
Total loans
|
|
71
|
|
|
$
|
29,243
|
|
|
15
|
|
|
$
|
7,708
|
|
|
21
|
|
|
$
|
24,325
|
|
|
8
|
|
|
$
|
6,978
|
|
|
21
|
|
|
$
|
12,897
|
|
|
8
|
|
|
$
|
7,841
|
|
(1)
|
Total TDRs represent all loans restructured in TDRs during the year indicated.
|
(2)
|
TDRs considered to be in payment default are over 30 days past-due subsequent to the restructuring.
|
(3)
|
Balances represent the recorded investment in the loan at the time of the restructuring.
|
|
134
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Balance at beginning of year
|
|
$
|
33,676
|
|
|
$
|
19,103
|
|
|
$
|
9,092
|
|
Additions from loans sold with servicing retained
|
|
33,071
|
|
|
18,341
|
|
|
13,091
|
|
|||
Additions from acquisitions
|
|
13,806
|
|
|
—
|
|
|
—
|
|
|||
Estimate of changes in fair value due to:
|
|
|
|
|
|
|
||||||
Payoffs and paydowns
|
|
(5,039
|
)
|
|
(2,595
|
)
|
|
(2,325
|
)
|
|||
Changes in valuation inputs or assumptions
|
|
(331
|
)
|
|
(1,173
|
)
|
|
(755
|
)
|
|||
Fair value at end of year
|
|
$
|
75,183
|
|
|
$
|
33,676
|
|
|
$
|
19,103
|
|
Unpaid principal balance of mortgage loans serviced for others
|
|
$
|
6,545,870
|
|
|
$
|
2,929,133
|
|
|
$
|
1,784,760
|
|
|
135
|
|
|
|
|
|
|
Year Ended December 31,
|
||
(Dollars in thousands)
|
|
2017
|
||
Balance at beginning of period
|
|
$
|
16,701
|
|
Reductions from reimbursable expenses
|
|
(291
|
)
|
|
Amortization
|
|
1,044
|
|
|
Changes in expected reimbursements from the FDIC for changes in expected credit losses
|
|
(1,658
|
)
|
|
Resolution through payments paid to the FDIC and termination of loss share agreements
|
|
(15,796
|
)
|
|
Balance at end of period
|
|
$
|
—
|
|
|
136
|
|
|
|
|
(Dollars in thousands)
|
|
January 1,
2018 |
|
Goodwill
Acquired |
|
Impairment
Loss |
|
Goodwill Adjustments
|
|
December 31,
2018
|
||||||||||
Community banking
|
|
$
|
429,520
|
|
|
$
|
35,565
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
465,085
|
|
Specialty finance
|
|
40,250
|
|
|
—
|
|
|
—
|
|
|
(1,907
|
)
|
|
38,343
|
|
|||||
Wealth management
|
|
32,114
|
|
|
37,599
|
|
|
—
|
|
|
—
|
|
|
69,713
|
|
|||||
Total
|
|
$
|
501,884
|
|
|
$
|
73,164
|
|
|
$
|
—
|
|
|
$
|
(1,907
|
)
|
|
$
|
573,141
|
|
|
137
|
|
|
|
|
|
|
December 31,
|
||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Community banking segment:
|
|
|
|
|
||||
Core deposit and other intangibles:
|
|
|
|
|
||||
Gross carrying amount
|
|
$
|
55,366
|
|
|
$
|
37,272
|
|
Accumulated amortization
|
|
(29,406
|
)
|
|
(25,427
|
)
|
||
Net carrying amount
|
|
$
|
25,960
|
|
|
$
|
11,845
|
|
Trademark with indefinite lives:
|
|
|
|
|
||||
Carrying amount
|
|
5,800
|
|
|
—
|
|
||
Total net carrying amount
|
|
$
|
31,760
|
|
|
$
|
11,845
|
|
Specialty finance segment:
|
|
|
|
|
||||
Customer list intangibles:
|
|
|
|
|
||||
Gross carrying amount
|
|
$
|
1,958
|
|
|
$
|
1,972
|
|
Accumulated amortization
|
|
(1,436
|
)
|
|
(1,298
|
)
|
||
Net carrying amount
|
|
$
|
522
|
|
|
$
|
674
|
|
Wealth management segment:
|
|
|
|
|
||||
Customer list and other intangibles:
|
|
|
|
|
||||
Gross carrying amount
|
|
$
|
20,430
|
|
|
$
|
7,940
|
|
Accumulated amortization
|
|
(3,288
|
)
|
|
(2,838
|
)
|
||
Net carrying amount
|
|
$
|
17,142
|
|
|
$
|
5,102
|
|
Total other intangible assets, net
|
|
$
|
49,424
|
|
|
$
|
17,621
|
|
|
|
December 31,
|
||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Land
|
|
$
|
164,232
|
|
|
$
|
147,704
|
|
Buildings and leasehold improvements
|
|
586,968
|
|
|
555,636
|
|
||
Furniture, equipment, and computer software
|
|
201,055
|
|
|
203,657
|
|
||
Construction in progress
|
|
16,179
|
|
|
6,962
|
|
||
|
|
$
|
968,434
|
|
|
$
|
913,959
|
|
Less: Accumulated depreciation and amortization
|
|
297,265
|
|
|
292,064
|
|
||
Total premises and equipment, net
|
|
$
|
671,169
|
|
|
$
|
621,895
|
|
|
138
|
|
|
|
|
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Balance:
|
|
|
|
|
||||
Non-interest bearing
|
|
$
|
6,569,880
|
|
|
$
|
6,792,497
|
|
NOW and interest bearing demand deposits
|
|
2,897,133
|
|
|
2,315,055
|
|
||
Wealth management deposits
|
|
2,996,764
|
|
|
2,323,699
|
|
||
Money market
|
|
5,704,866
|
|
|
4,515,353
|
|
||
Savings
|
|
2,665,194
|
|
|
2,829,373
|
|
||
Time certificates of deposit
|
|
5,260,841
|
|
|
4,407,370
|
|
||
Total deposits
|
|
$
|
26,094,678
|
|
|
$
|
23,183,347
|
|
Mix:
|
|
|
|
|
||||
Non-interest bearing
|
|
25
|
%
|
|
29
|
%
|
||
NOW and interest bearing demand deposits
|
|
11
|
|
|
10
|
|
||
Wealth management deposits
|
|
12
|
|
|
10
|
|
||
Money market
|
|
22
|
|
|
20
|
|
||
Savings
|
|
10
|
|
|
12
|
|
||
Time certificates of deposit
|
|
20
|
|
|
19
|
|
||
Total deposits
|
|
100
|
%
|
|
100
|
%
|
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Due within one year
|
|
$
|
3,213,010
|
|
|
$
|
3,167,220
|
|
Due in one to two years
|
|
1,251,446
|
|
|
969,130
|
|
||
Due in two to three years
|
|
710,836
|
|
|
127,548
|
|
||
Due in three to four years
|
|
47,979
|
|
|
98,952
|
|
||
Due in four to five years
|
|
37,563
|
|
|
44,206
|
|
||
Due after five years
|
|
7
|
|
|
314
|
|
||
Total time certificate of deposits
|
|
$
|
5,260,841
|
|
|
$
|
4,407,370
|
|
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Maturing within three months
|
|
$
|
682,940
|
|
|
$
|
695,904
|
|
After three but within six months
|
|
667,079
|
|
|
614,963
|
|
||
After six but within 12 months
|
|
921,547
|
|
|
820,285
|
|
||
After 12 months
|
|
1,350,717
|
|
|
784,798
|
|
||
Total
|
|
$
|
3,622,283
|
|
|
$
|
2,915,950
|
|
|
139
|
|
|
|
|
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
1.44% advance due January 2018
|
|
$
|
—
|
|
|
$
|
250,000
|
|
1.49% advance due February 2018
|
|
—
|
|
|
94,663
|
|
||
1.57% advance due June 2019
|
|
1,991
|
|
|
—
|
|
||
1.75% advance due June 2020
|
|
3,940
|
|
|
—
|
|
||
1.72% advance due June 2020
|
|
2,461
|
|
|
—
|
|
||
1.88% advance due June 2021
|
|
2,934
|
|
|
—
|
|
||
4.18% advance due February 2022
|
|
25,000
|
|
|
25,000
|
|
||
1.52% advance due March 2022
|
|
50,000
|
|
|
50,000
|
|
||
1.45% advance due May 2022
|
|
50,000
|
|
|
50,000
|
|
||
1.46% advance due May 2022
|
|
90,000
|
|
|
90,000
|
|
||
1.98% advance due January 2023
|
|
100,000
|
|
|
—
|
|
||
0.93% advance due January 2028
|
|
100,000
|
|
|
—
|
|
||
Total FHLB advances
|
|
$
|
426,326
|
|
|
$
|
559,663
|
|
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Notes payable
|
|
$
|
144,461
|
|
|
$
|
41,222
|
|
Short-term borrowings
|
|
50,593
|
|
|
17,209
|
|
||
Other
|
|
47,722
|
|
|
49,131
|
|
||
Secured borrowings
|
|
151,079
|
|
|
158,561
|
|
||
Total other borrowings
|
|
$
|
393,855
|
|
|
$
|
266,123
|
|
|
140
|
|
|
|
|
|
141
|
|
|
|
|
(Dollars in thousands)
|
|
Overnight Sweep Collateral
|
||
Available-for-sale securities pledged
|
|
|
||
Mortgage-backed securities
|
|
$
|
21,059
|
|
Held-to-maturity securities pledged
|
|
|
||
U.S. Government agencies
|
|
41,723
|
|
|
Total collateral pledged
|
|
$
|
62,782
|
|
Excess collateral
|
|
12,189
|
|
|
Securities sold under repurchase agreements
|
|
$
|
50,593
|
|
|
142
|
|
|
|
|
|
|
Common Securities
|
|
Trust Preferred Securities
|
|
Junior
Subordinated
Debentures
|
|
Rate Structure
|
|
Contractual rate at 12/31/2018
|
|
|
|
Maturity Date
|
|
Earliest Redemption Date
|
|||||||||||
(Dollars in thousands)
|
|
|
|
2018
|
|
2017
|
|
|
|
Issue Date
|
|
|
|||||||||||||||
Wintrust Capital Trust III
|
|
$
|
774
|
|
|
$
|
25,000
|
|
|
$
|
25,774
|
|
|
$
|
25,774
|
|
|
L+3.25
|
|
5.69
|
%
|
|
04/2003
|
|
04/2033
|
|
04/2008
|
Wintrust Statutory Trust IV
|
|
619
|
|
|
20,000
|
|
|
20,619
|
|
|
20,619
|
|
|
L+2.80
|
|
5.60
|
|
|
12/2003
|
|
12/2033
|
|
12/2008
|
||||
Wintrust Statutory Trust V
|
|
1,238
|
|
|
40,000
|
|
|
41,238
|
|
|
41,238
|
|
|
L+2.60
|
|
5.40
|
|
|
05/2004
|
|
05/2034
|
|
06/2009
|
||||
Wintrust Capital Trust VII
|
|
1,550
|
|
|
50,000
|
|
|
51,550
|
|
|
51,550
|
|
|
L+1.95
|
|
4.74
|
|
|
12/2004
|
|
03/2035
|
|
03/2010
|
||||
Wintrust Capital Trust VIII
|
|
1,238
|
|
|
25,000
|
|
|
26,238
|
|
|
26,238
|
|
|
L+1.45
|
|
4.25
|
|
|
08/2005
|
|
09/2035
|
|
09/2010
|
||||
Wintrust Capital Trust IX
|
|
1,547
|
|
|
50,000
|
|
|
51,547
|
|
|
51,547
|
|
|
L+1.63
|
|
4.42
|
|
|
09/2006
|
|
09/2036
|
|
09/2011
|
||||
Northview Capital Trust I
|
|
186
|
|
|
6,000
|
|
|
6,186
|
|
|
6,186
|
|
|
L+3.00
|
|
5.54
|
|
|
08/2003
|
|
11/2033
|
|
08/2008
|
||||
Town Bankshares Capital Trust I
|
|
186
|
|
|
6,000
|
|
|
6,186
|
|
|
6,186
|
|
|
L+3.00
|
|
5.54
|
|
|
08/2003
|
|
11/2033
|
|
08/2008
|
||||
First Northwest Capital Trust I
|
|
155
|
|
|
5,000
|
|
|
5,155
|
|
|
5,155
|
|
|
L+3.00
|
|
5.80
|
|
|
05/2004
|
|
05/2034
|
|
05/2009
|
||||
Suburban Illinois Capital Trust II
|
|
464
|
|
|
15,000
|
|
|
15,464
|
|
|
15,464
|
|
|
L+1.75
|
|
4.54
|
|
|
12/2006
|
|
12/2036
|
|
12/2011
|
||||
Community Financial Shares Statutory Trust II
|
|
109
|
|
|
3,500
|
|
|
3,609
|
|
|
3,609
|
|
|
L+1.62
|
|
4.41
|
|
|
06/2007
|
|
09/2037
|
|
06/2012
|
||||
Total
|
|
|
|
|
|
$
|
253,566
|
|
|
$
|
253,566
|
|
|
|
|
4.94
|
%
|
|
|
|
|
|
|
|
143
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
Years Ended
|
||||||||||
Revenue from contracts with customers
|
|
Location in income statement
|
|
December 31,
2018 |
|
December 31,
2017 |
|
December 31,
2016 |
||||||
Brokerage and insurance product commissions
|
|
Wealth management
|
|
$
|
22,391
|
|
|
$
|
22,863
|
|
|
$
|
25,519
|
|
Trust
|
|
Wealth management
|
|
13,263
|
|
|
12,547
|
|
|
11,993
|
|
|||
Asset management
|
|
Wealth management
|
|
55,309
|
|
|
46,356
|
|
|
38,506
|
|
|||
Total wealth management
|
|
|
|
90,963
|
|
|
81,766
|
|
|
76,018
|
|
|||
Mortgage broker fees
|
|
Mortgage banking
|
|
1,188
|
|
|
1,565
|
|
|
2,834
|
|
|||
Service charges on deposit accounts
|
|
Service charges on deposit accounts
|
|
36,404
|
|
|
34,513
|
|
|
31,210
|
|
|||
Administrative services
|
|
Other non-interest income
|
|
4,625
|
|
|
4,165
|
|
|
4,409
|
|
|||
Card related fees
|
|
Other non-interest income
|
|
7,441
|
|
|
5,858
|
|
|
5,495
|
|
|||
Other deposit related fees
|
|
Other non-interest income
|
|
11,892
|
|
|
11,127
|
|
|
9,555
|
|
|
144
|
|
|
|
|
|
145
|
|
|
|
|
(Dollars in thousands)
|
December 31,
2018 |
|
December 31,
2017 |
||||
Contract assets
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
||||
Contract liabilities
|
$
|
1,727
|
|
|
$
|
1,706
|
|
|
|
|
|
||||
Mortgage broker fees receivable
|
$
|
44
|
|
|
$
|
69
|
|
Administrative services receivable
|
275
|
|
|
—
|
|
||
Wealth management receivable
|
13,610
|
|
|
8,102
|
|
||
Card related fees receivable
|
—
|
|
|
202
|
|
||
Total receivables from contracts with customer
|
$
|
13,929
|
|
|
$
|
8,373
|
|
(Dollars in thousands)
|
|
||
Estimated—2019
|
$
|
759
|
|
Estimated—2020
|
369
|
|
|
Estimated—2021
|
303
|
|
|
Estimated—2022
|
153
|
|
|
Estimated—2023
|
143
|
|
|
Total
|
$
|
1,727
|
|
|
146
|
|
|
|
|
|
|
Payments
|
|
Receipts
|
||||
2019
|
|
$
|
15,106
|
|
|
$
|
7,533
|
|
2020
|
|
16,406
|
|
|
5,576
|
|
||
2021
|
|
15,116
|
|
|
5,081
|
|
||
2022
|
|
14,253
|
|
|
3,636
|
|
||
2023
|
|
13,201
|
|
|
2,117
|
|
||
2024 and thereafter
|
|
131,615
|
|
|
5,233
|
|
||
Total minimum future amounts
|
|
$
|
205,697
|
|
|
$
|
29,176
|
|
|
|
Years Ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Current income taxes:
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
44,266
|
|
|
$
|
54,977
|
|
|
$
|
98,272
|
|
State
|
|
18,349
|
|
|
12,852
|
|
|
20,041
|
|
|||
Foreign
|
|
(872
|
)
|
|
1,243
|
|
|
(10
|
)
|
|||
Total current income taxes
|
|
$
|
61,743
|
|
|
$
|
69,072
|
|
|
$
|
118,303
|
|
Deferred income taxes:
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
40,500
|
|
|
$
|
51,668
|
|
|
$
|
4,464
|
|
State
|
|
11,705
|
|
|
10,403
|
|
|
(14
|
)
|
|||
Foreign
|
|
3,019
|
|
|
1,172
|
|
|
2,226
|
|
|||
Total deferred income taxes
|
|
$
|
55,224
|
|
|
$
|
63,243
|
|
|
$
|
6,676
|
|
Total income tax expense
|
|
$
|
116,967
|
|
|
$
|
132,315
|
|
|
$
|
124,979
|
|
|
147
|
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Income tax expense using the statutory Federal income tax rate of 21% in 2018, and 35% in 2017 and 2016, on income before income taxes
|
|
$
|
96,628
|
|
|
$
|
136,499
|
|
|
$
|
116,149
|
|
Increase (decrease) in tax resulting from:
|
|
|
|
|
|
|
||||||
Tax-exempt interest, net of interest expense disallowance
|
|
(3,869
|
)
|
|
(4,658
|
)
|
|
(3,634
|
)
|
|||
State taxes, net of federal tax benefit
|
|
23,584
|
|
|
15,115
|
|
|
13,017
|
|
|||
Income earned on bank owned life insurance
|
|
(1,002
|
)
|
|
(1,167
|
)
|
|
(1,198
|
)
|
|||
Excess tax benefits on share based compensation
|
|
(3,107
|
)
|
|
(5,470
|
)
|
|
—
|
|
|||
Enactment of Tax Cuts and Jobs Act
|
|
|
|
|
|
|
||||||
Re-measurement of net deferred tax liabilities
|
|
(1,209
|
)
|
|
(10,402
|
)
|
|
—
|
|
|||
Transition tax on deferred foreign earnings
|
|
—
|
|
|
2,850
|
|
|
—
|
|
|||
Meals, entertainment and related expenses
|
|
1,840
|
|
|
1,710
|
|
|
1,439
|
|
|||
FDIC insurance expense
|
|
1,832
|
|
|
—
|
|
|
—
|
|
|||
Non-deductible compensation expense
|
|
1,366
|
|
|
55
|
|
|
77
|
|
|||
Foreign subsidiary, net
|
|
1,591
|
|
|
(271
|
)
|
|
(264
|
)
|
|||
Tax benefits related to tax credit investments, net
|
|
(656
|
)
|
|
(698
|
)
|
|
(572
|
)
|
|||
Other, net
|
|
(31
|
)
|
|
(1,248
|
)
|
|
(35
|
)
|
|||
Income tax expense
|
|
$
|
116,967
|
|
|
$
|
132,315
|
|
|
$
|
124,979
|
|
|
148
|
|
|
|
|
|
|
|
||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Deferred tax assets:
|
|
|
|
|
||||
Allowance for credit losses
|
|
$
|
40,342
|
|
|
$
|
36,442
|
|
Deferred compensation
|
|
22,363
|
|
|
12,310
|
|
||
Net unrealized losses on securities included in other comprehensive income
|
|
15,430
|
|
|
7,465
|
|
||
Stock-based compensation
|
|
7,544
|
|
|
6,898
|
|
||
Federal net operating loss carryforward
|
|
5,348
|
|
|
3,063
|
|
||
Loans
|
|
4,540
|
|
|
4,943
|
|
||
Other real estate owned
|
|
2,429
|
|
|
4,019
|
|
||
AMT credit carryforward
|
|
1,395
|
|
|
1,199
|
|
||
Nonaccrued interest
|
|
1,357
|
|
|
983
|
|
||
Mortgage banking recourse obligation
|
|
632
|
|
|
722
|
|
||
Other
|
|
3,744
|
|
|
2,307
|
|
||
Total gross deferred tax assets
|
|
105,124
|
|
|
80,351
|
|
||
Deferred tax liabilities:
|
|
|
|
|
||||
Equipment leasing
|
|
90,306
|
|
|
42,681
|
|
||
Premises and equipment
|
|
28,517
|
|
|
23,211
|
|
||
Capitalized servicing rights
|
|
16,663
|
|
|
8,916
|
|
||
Goodwill and intangible assets
|
|
12,921
|
|
|
7,619
|
|
||
Deferred loan fees and costs
|
|
3,446
|
|
|
3,531
|
|
||
Net unrealized gains on derivatives included in other comprehensive income
|
|
2,863
|
|
|
3,197
|
|
||
Fair value adjustments on loans
|
|
2,833
|
|
|
3,143
|
|
||
Other
|
|
5,295
|
|
|
3,433
|
|
||
Total gross deferred liabilities
|
|
162,844
|
|
|
95,731
|
|
||
Net deferred tax liabilities
|
|
$
|
(57,720
|
)
|
|
$
|
(15,380
|
)
|
|
|
Years Ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Unrecognized tax benefits at beginning of year
|
|
$
|
10,821
|
|
|
$
|
11,626
|
|
|
$
|
—
|
|
Gross increases for tax positions taken in current period
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Gross increases (decreases) for positions taken in prior periods
|
|
717
|
|
|
(805
|
)
|
|
11,626
|
|
|||
Unrecognized tax benefits at end of the year
|
|
$
|
11,538
|
|
|
$
|
10,821
|
|
|
$
|
11,626
|
|
|
149
|
|
|
|
|
|
150
|
|
|
|
|
|
2016
|
|
Expected dividend yield
|
0.9
|
%
|
Expected volatility
|
25.2
|
%
|
Risk-free rate
|
1.3
|
%
|
Expected option life (in years)
|
4.5
|
|
|
151
|
|
|
|
|
Stock Options
|
|
Common
Shares
|
|
Weighted Average
Strike Price
|
|
Remaining
Contractual Term
(1)
|
|
Intrinsic Value
(2)
($000)
|
|||||
Outstanding at January 1, 2016
|
|
1,551,734
|
|
|
$
|
41.32
|
|
|
|
|
|
||
Granted
|
|
562,166
|
|
|
41.04
|
|
|
|
|
|
|||
Exercised
|
|
(313,900
|
)
|
|
37.71
|
|
|
|
|
|
|||
Forfeited or canceled
|
|
(101,088
|
)
|
|
48.00
|
|
|
|
|
|
|||
Outstanding at December 31, 2016
|
|
1,698,912
|
|
|
$
|
41.50
|
|
|
4.6
|
|
$
|
52,790
|
|
Exercisable at December 31, 2016
|
|
703,892
|
|
|
$
|
39.62
|
|
|
3.4
|
|
$
|
23,195
|
|
Outstanding at January 1, 2017
|
|
1,698,912
|
|
|
$
|
41.50
|
|
|
|
|
|
||
Granted
|
|
—
|
|
|
—
|
|
|
|
|
|
|||
Exercised
|
|
(593,459
|
)
|
|
40.57
|
|
|
|
|
|
|||
Forfeited or canceled
|
|
(20,697
|
)
|
|
42.83
|
|
|
|
|
|
|||
Outstanding at December 31, 2017
|
|
1,084,756
|
|
|
$
|
41.98
|
|
|
4.0
|
|
$
|
43,817
|
|
Exercisable at December 31, 2017
|
|
562,810
|
|
|
$
|
41.82
|
|
|
3.3
|
|
$
|
22,820
|
|
Outstanding at January 1, 2018
|
|
1,084,756
|
|
|
$
|
41.98
|
|
|
|
|
|
||
Granted
|
|
—
|
|
|
—
|
|
|
|
|
|
|||
Exercised
|
|
(282,614
|
)
|
|
41.25
|
|
|
|
|
|
|||
Forfeited or canceled
|
|
(7,128
|
)
|
|
39.84
|
|
|
|
|
|
|||
Outstanding at December 31, 2018
|
|
795,014
|
|
|
$
|
42.25
|
|
|
3.1
|
|
$
|
19,268
|
|
Exercisable at December 31, 2018
|
|
613,932
|
|
|
$
|
42.54
|
|
|
3.1
|
|
$
|
14,705
|
|
Vested or expected to vest at December 31, 2018
|
|
787,753
|
|
|
$
|
42.26
|
|
|
3.1
|
|
$
|
19,085
|
|
(1)
|
Represents the weighted average contractual remaining life in years.
|
(2)
|
Aggregate intrinsic value represents the total pretax intrinsic value (i.e., the difference between the Company’s stock price at year end and the option exercise price, multiplied by the number of shares) that would have been received by the option holders if they had exercised their options on the last day of the year. Options with exercise prices above the year end stock price are excluded from the calculation of intrinsic value. The intrinsic value will change based on the fair market value of the Company’s stock.
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
Restricted Shares
|
|
Common
Shares
|
|
Weighted
Average
Grant-Date
Fair Value
|
|
Common
Shares
|
|
Weighted
Average
Grant-Date
Fair Value
|
|
Common
Shares
|
|
Weighted
Average
Grant-Date
Fair Value
|
|||||||||
Outstanding at January 1
|
|
127,787
|
|
|
$
|
53.33
|
|
|
133,425
|
|
|
$
|
49.94
|
|
|
137,593
|
|
|
$
|
49.63
|
|
Granted
|
|
35,654
|
|
|
84.36
|
|
|
16,552
|
|
|
73.16
|
|
|
18,022
|
|
|
46.01
|
|
|||
Vested and issued
|
|
(18,324
|
)
|
|
54.31
|
|
|
(19,639
|
)
|
|
47.13
|
|
|
(20,007
|
)
|
|
44.91
|
|
|||
Forfeited
|
|
(1,854
|
)
|
|
63.50
|
|
|
(2,551
|
)
|
|
52.26
|
|
|
(2,183
|
)
|
|
44.18
|
|
|||
Outstanding at end of year
|
|
143,263
|
|
|
$
|
60.80
|
|
|
127,787
|
|
|
$
|
53.33
|
|
|
133,425
|
|
|
$
|
49.94
|
|
Vested, but not issuable at end of year
|
|
90,520
|
|
|
$
|
51.94
|
|
|
89,723
|
|
|
$
|
51.64
|
|
|
89,050
|
|
|
$
|
51.47
|
|
|
152
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
Performance Shares
|
|
Common
Shares
|
|
Weighted
Average
Grant-Date
Fair Value
|
|
Common
Shares
|
|
Weighted
Average
Grant-Date
Fair Value
|
|
Common
Shares
|
|
Weighted
Average
Grant-Date
Fair Value
|
|||||||||
Outstanding at January 1
|
|
359,196
|
|
|
$
|
54.37
|
|
|
298,180
|
|
|
$
|
43.64
|
|
|
276,533
|
|
|
$
|
43.01
|
|
Granted
|
|
134,380
|
|
|
88.27
|
|
|
145,853
|
|
|
72.60
|
|
|
118,084
|
|
|
41.02
|
|
|||
Vested and issued
|
|
(82,307
|
)
|
|
44.39
|
|
|
(68,712
|
)
|
|
46.85
|
|
|
(78,410
|
)
|
|
37.90
|
|
|||
Expired, canceled or forfeited
|
|
(14,414
|
)
|
|
60.05
|
|
|
(16,125
|
)
|
|
52.98
|
|
|
(18,027
|
)
|
|
41.83
|
|
|||
Outstanding at end of year
|
|
396,855
|
|
|
$
|
67.71
|
|
|
359,196
|
|
|
$
|
54.37
|
|
|
298,180
|
|
|
$
|
43.64
|
|
Vested, but deferred at year end
|
|
21,530
|
|
|
$
|
43.54
|
|
|
108,143
|
|
|
$
|
44.16
|
|
|
6,672
|
|
|
$
|
37.98
|
|
|
153
|
|
|
|
|
|
154
|
|
|
|
|
|
|
2018
|
|
2017
|
||
Total capital to risk weighted assets
|
|
11.6
|
%
|
|
12.0
|
%
|
Tier 1 capital to risk weighted assets
|
|
9.7
|
|
|
9.9
|
|
Common Equity Tier 1 capital to risk weighted assets
|
|
9.3
|
|
|
9.4
|
|
Tier 1 leverage Ratio
|
|
9.1
|
|
|
9.3
|
|
|
155
|
|
|
|
|
(Dollars in thousands)
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||
|
|
Actual
|
|
To Be Well
Capitalized by
Regulatory Definition
|
|
Actual
|
|
To Be Well
Capitalized by
Regulatory Definition
|
||||||||||||||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||||||||
Total Capital (to Risk Weighted Assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lake Forest Bank
|
|
$
|
424,872
|
|
|
12.5
|
%
|
|
$
|
338,823
|
|
|
10.0
|
%
|
|
$
|
366,407
|
|
|
11.6
|
%
|
|
$
|
317,180
|
|
|
10.0
|
%
|
Hinsdale Bank
|
|
256,166
|
|
|
11.9
|
|
|
220,004
|
|
|
10.0
|
|
|
224,577
|
|
|
11.5
|
|
|
195,125
|
|
|
10.0
|
|
||||
Wintrust Bank
|
|
613,037
|
|
|
11.5
|
|
|
533,154
|
|
|
10.0
|
|
|
512,581
|
|
|
11.2
|
|
|
456,230
|
|
|
10.0
|
|
||||
Libertyville Bank
|
|
161,453
|
|
|
11.9
|
|
|
135,262
|
|
|
10.0
|
|
|
141,723
|
|
|
11.4
|
|
|
124,637
|
|
|
10.0
|
|
||||
Barrington Bank
|
|
258,301
|
|
|
11.1
|
|
|
231,871
|
|
|
10.0
|
|
|
234,930
|
|
|
12.0
|
|
|
195,409
|
|
|
10.0
|
|
||||
Crystal Lake Bank
|
|
107,041
|
|
|
11.6
|
|
|
92,542
|
|
|
10.0
|
|
|
95,532
|
|
|
11.3
|
|
|
84,664
|
|
|
10.0
|
|
||||
Northbrook Bank
|
|
236,201
|
|
|
11.1
|
|
|
213,524
|
|
|
10.0
|
|
|
222,441
|
|
|
11.4
|
|
|
194,764
|
|
|
10.0
|
|
||||
Schaumburg Bank
|
|
113,797
|
|
|
11.4
|
|
|
100,151
|
|
|
10.0
|
|
|
111,772
|
|
|
11.9
|
|
|
93,752
|
|
|
10.0
|
|
||||
Village Bank
|
|
151,653
|
|
|
11.2
|
|
|
135,695
|
|
|
10.0
|
|
|
145,517
|
|
|
11.9
|
|
|
121,867
|
|
|
10.0
|
|
||||
Beverly Bank
|
|
146,054
|
|
|
11.8
|
|
|
123,618
|
|
|
10.0
|
|
|
132,516
|
|
|
11.7
|
|
|
112,810
|
|
|
10.0
|
|
||||
Town Bank
|
|
208,479
|
|
|
11.3
|
|
|
184,825
|
|
|
10.0
|
|
|
188,987
|
|
|
11.4
|
|
|
166,253
|
|
|
10.0
|
|
||||
Wheaton Bank
|
|
165,798
|
|
|
11.3
|
|
|
147,354
|
|
|
10.0
|
|
|
151,141
|
|
|
11.4
|
|
|
132,211
|
|
|
10.0
|
|
||||
State Bank of the Lakes
|
|
111,530
|
|
|
11.1
|
|
|
100,654
|
|
|
10.0
|
|
|
105,770
|
|
|
11.4
|
|
|
92,518
|
|
|
10.0
|
|
||||
Old Plank Trail Bank
|
|
151,889
|
|
|
11.4
|
|
|
132,842
|
|
|
10.0
|
|
|
145,272
|
|
|
11.6
|
|
|
125,642
|
|
|
10.0
|
|
||||
St. Charles Bank
|
|
115,607
|
|
|
11.4
|
|
|
101,337
|
|
|
10.0
|
|
|
105,778
|
|
|
11.4
|
|
|
92,582
|
|
|
10.0
|
|
||||
Tier 1 Capital (to Risk Weighted Assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lake Forest Bank
|
|
$
|
402,156
|
|
|
11.9
|
%
|
|
$
|
271,058
|
|
|
8.0
|
%
|
|
$
|
347,924
|
|
|
11.0
|
%
|
|
$
|
253,744
|
|
|
8.0
|
%
|
Hinsdale Bank
|
|
244,036
|
|
|
11.3
|
|
|
176,003
|
|
|
8.0
|
|
|
214,061
|
|
|
11.0
|
|
|
156,100
|
|
|
8.0
|
|
||||
Wintrust Bank
|
|
545,649
|
|
|
10.2
|
|
|
426,523
|
|
|
8.0
|
|
|
439,061
|
|
|
9.6
|
|
|
364,984
|
|
|
8.0
|
|
||||
Libertyville Bank
|
|
152,939
|
|
|
11.3
|
|
|
108,209
|
|
|
8.0
|
|
|
134,310
|
|
|
10.8
|
|
|
99,709
|
|
|
8.0
|
|
||||
Barrington Bank
|
|
252,189
|
|
|
10.9
|
|
|
185,497
|
|
|
8.0
|
|
|
229,311
|
|
|
11.7
|
|
|
156,327
|
|
|
8.0
|
|
||||
Crystal Lake Bank
|
|
102,404
|
|
|
11.1
|
|
|
74,033
|
|
|
8.0
|
|
|
91,273
|
|
|
10.8
|
|
|
67,731
|
|
|
8.0
|
|
||||
Northbrook Bank
|
|
223,849
|
|
|
10.5
|
|
|
170,819
|
|
|
8.0
|
|
|
198,628
|
|
|
10.2
|
|
|
155,811
|
|
|
8.0
|
|
||||
Schaumburg Bank
|
|
108,338
|
|
|
10.8
|
|
|
80,120
|
|
|
8.0
|
|
|
105,733
|
|
|
11.3
|
|
|
75,001
|
|
|
8.0
|
|
||||
Village Bank
|
|
142,333
|
|
|
10.5
|
|
|
108,556
|
|
|
8.0
|
|
|
136,807
|
|
|
11.2
|
|
|
97,494
|
|
|
8.0
|
|
||||
Beverly Bank
|
|
141,140
|
|
|
11.4
|
|
|
98,894
|
|
|
8.0
|
|
|
127,561
|
|
|
11.3
|
|
|
90,248
|
|
|
8.0
|
|
||||
Town Bank
|
|
199,982
|
|
|
10.8
|
|
|
147,860
|
|
|
8.0
|
|
|
180,943
|
|
|
10.9
|
|
|
133,003
|
|
|
8.0
|
|
||||
Wheaton Bank
|
|
159,718
|
|
|
10.8
|
|
|
117,883
|
|
|
8.0
|
|
|
135,009
|
|
|
10.2
|
|
|
105,769
|
|
|
8.0
|
|
||||
State Bank of the Lakes
|
|
107,234
|
|
|
10.7
|
|
|
80,523
|
|
|
8.0
|
|
|
95,520
|
|
|
10.3
|
|
|
74,014
|
|
|
8.0
|
|
||||
Old Plank Trail Bank
|
|
145,779
|
|
|
11.0
|
|
|
106,273
|
|
|
8.0
|
|
|
139,366
|
|
|
11.1
|
|
|
100,514
|
|
|
8.0
|
|
||||
St. Charles Bank
|
|
111,454
|
|
|
11.0
|
|
|
81,069
|
|
|
8.0
|
|
|
102,251
|
|
|
11.0
|
|
|
74,066
|
|
|
8.0
|
|
||||
Common Equity Tier 1 Capital (to Risk Weighted Assets):
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Lake Forest Bank
|
|
$
|
402,156
|
|
|
11.9
|
%
|
|
$
|
220,235
|
|
|
6.5
|
%
|
|
$
|
347,924
|
|
|
11.0
|
%
|
|
$
|
206,167
|
|
|
6.5
|
%
|
Hinsdale Bank
|
|
244,036
|
|
|
11.3
|
|
|
143,002
|
|
|
6.5
|
|
|
214,061
|
|
|
11.0
|
|
|
126,831
|
|
|
6.5
|
|
||||
Wintrust Bank
|
|
545,649
|
|
|
10.2
|
|
|
346,550
|
|
|
6.5
|
|
|
439,061
|
|
|
9.6
|
|
|
296,549
|
|
|
6.5
|
|
||||
Libertyville Bank
|
|
152,939
|
|
|
11.3
|
|
|
87,920
|
|
|
6.5
|
|
|
134,310
|
|
|
10.8
|
|
|
81,014
|
|
|
6.5
|
|
||||
Barrington Bank
|
|
252,189
|
|
|
10.9
|
|
|
150,716
|
|
|
6.5
|
|
|
229,311
|
|
|
11.7
|
|
|
127,016
|
|
|
6.5
|
|
||||
Crystal Lake Bank
|
|
102,404
|
|
|
11.1
|
|
|
60,152
|
|
|
6.5
|
|
|
91,273
|
|
|
10.8
|
|
|
55,031
|
|
|
6.5
|
|
||||
Northbrook Bank
|
|
223,849
|
|
|
10.5
|
|
|
138,791
|
|
|
6.5
|
|
|
198,628
|
|
|
10.2
|
|
|
126,597
|
|
|
6.5
|
|
||||
Schaumburg Bank
|
|
108,338
|
|
|
10.8
|
|
|
65,098
|
|
|
6.5
|
|
|
105,733
|
|
|
11.3
|
|
|
60,939
|
|
|
6.5
|
|
||||
Village Bank
|
|
142,333
|
|
|
10.5
|
|
|
88,201
|
|
|
6.5
|
|
|
136,807
|
|
|
11.2
|
|
|
79,214
|
|
|
6.5
|
|
||||
Beverly Bank
|
|
141,140
|
|
|
11.4
|
|
|
80,352
|
|
|
6.5
|
|
|
127,561
|
|
|
11.3
|
|
|
73,327
|
|
|
6.5
|
|
||||
Town Bank
|
|
199,982
|
|
|
10.8
|
|
|
120,136
|
|
|
6.5
|
|
|
180,943
|
|
|
10.9
|
|
|
108,065
|
|
|
6.5
|
|
||||
Wheaton Bank
|
|
159,718
|
|
|
10.8
|
|
|
95,780
|
|
|
6.5
|
|
|
135,009
|
|
|
10.2
|
|
|
85,937
|
|
|
6.5
|
|
||||
State Bank of the Lakes
|
|
107,234
|
|
|
10.7
|
|
|
65,425
|
|
|
6.5
|
|
|
95,520
|
|
|
10.3
|
|
|
60,137
|
|
|
6.5
|
|
||||
Old Plank Trail Bank
|
|
145,779
|
|
|
11.0
|
|
|
86,347
|
|
|
6.5
|
|
|
139,366
|
|
|
11.1
|
|
|
81,667
|
|
|
6.5
|
|
||||
St. Charles Bank
|
|
111,454
|
|
|
11.0
|
|
|
65,869
|
|
|
6.5
|
|
|
102,251
|
|
|
11.0
|
|
|
60,178
|
|
|
6.5
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Dollars in thousands)
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||
|
|
Actual
|
|
To Be Well
Capitalized by
Regulatory Definition
|
|
Actual
|
|
To Be Well
Capitalized by
Regulatory Definition
|
||||||||||||||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||||||||
Tier 1 Leverage Ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lake Forest Bank
|
|
$
|
402,156
|
|
|
10.7
|
%
|
|
$
|
187,634
|
|
|
5.0
|
%
|
|
$
|
347,924
|
|
|
10.3
|
%
|
|
$
|
168,865
|
|
|
5.0
|
%
|
Hinsdale Bank
|
|
244,036
|
|
|
10.4
|
|
|
117,308
|
|
|
5.0
|
|
|
214,061
|
|
|
10.2
|
|
|
105,086
|
|
|
5.0
|
|
||||
Wintrust Bank
|
|
545,649
|
|
|
9.7
|
|
|
281,090
|
|
|
5.0
|
|
|
439,061
|
|
|
9.2
|
|
|
237,782
|
|
|
5.0
|
|
||||
Libertyville Bank
|
|
152,939
|
|
|
10.0
|
|
|
76,247
|
|
|
5.0
|
|
|
134,310
|
|
|
9.8
|
|
|
68,404
|
|
|
5.0
|
|
||||
Barrington Bank
|
|
252,189
|
|
|
12.9
|
|
|
97,759
|
|
|
5.0
|
|
|
229,311
|
|
|
11.8
|
|
|
97,007
|
|
|
5.0
|
|
||||
Crystal Lake Bank
|
|
102,404
|
|
|
9.9
|
|
|
51,974
|
|
|
5.0
|
|
|
91,273
|
|
|
9.5
|
|
|
48,069
|
|
|
5.0
|
|
||||
Northbrook Bank
|
|
223,849
|
|
|
9.8
|
|
|
114,125
|
|
|
5.0
|
|
|
198,628
|
|
|
9.5
|
|
|
104,377
|
|
|
5.0
|
|
||||
Schaumburg Bank
|
|
108,338
|
|
|
9.5
|
|
|
57,111
|
|
|
5.0
|
|
|
105,733
|
|
|
10.1
|
|
|
52,171
|
|
|
5.0
|
|
||||
Village Bank
|
|
142,333
|
|
|
9.5
|
|
|
75,197
|
|
|
5.0
|
|
|
136,807
|
|
|
9.7
|
|
|
70,182
|
|
|
5.0
|
|
||||
Beverly Bank
|
|
141,140
|
|
|
10.7
|
|
|
66,109
|
|
|
5.0
|
|
|
127,561
|
|
|
10.8
|
|
|
59,140
|
|
|
5.0
|
|
||||
Town Bank
|
|
199,982
|
|
|
10.0
|
|
|
100,257
|
|
|
5.0
|
|
|
180,943
|
|
|
10.1
|
|
|
89,617
|
|
|
5.0
|
|
||||
Wheaton Bank
|
|
159,718
|
|
|
9.8
|
|
|
81,767
|
|
|
5.0
|
|
|
135,009
|
|
|
9.4
|
|
|
72,152
|
|
|
5.0
|
|
||||
State Bank of the Lakes
|
|
107,234
|
|
|
9.2
|
|
|
58,068
|
|
|
5.0
|
|
|
95,520
|
|
|
9.2
|
|
|
51,681
|
|
|
5.0
|
|
||||
Old Plank Trail Bank
|
|
145,779
|
|
|
9.6
|
|
|
76,096
|
|
|
5.0
|
|
|
139,366
|
|
|
9.9
|
|
|
70,735
|
|
|
5.0
|
|
||||
St. Charles Bank
|
|
111,454
|
|
|
9.8
|
|
|
56,915
|
|
|
5.0
|
|
|
102,251
|
|
|
9.8
|
|
|
51,907
|
|
|
5.0
|
|
|
157
|
|
|
|
|
|
158
|
|
|
|
|
|
159
|
|
|
|
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||||
|
Fair Value
|
|
Fair Value
|
||||||||||||||
(Dollars in thousands)
|
|
December 31, 2018
|
|
December 31, 2017
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||
Derivatives designated as hedging instruments under ASC 815:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate derivatives designated as Cash Flow Hedges
|
|
$
|
6,270
|
|
|
$
|
11,914
|
|
|
|
$
|
1,656
|
|
|
$
|
12
|
|
Interest rate derivatives designated as Fair Value Hedges
|
|
2,636
|
|
|
2,932
|
|
|
|
1,756
|
|
|
—
|
|
||||
Total derivatives designated as hedging instruments under ASC 815
|
|
$
|
8,906
|
|
|
$
|
14,846
|
|
|
|
$
|
3,412
|
|
|
$
|
12
|
|
Derivatives not designated as hedging instruments under ASC 815:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate derivatives
|
|
$
|
59,519
|
|
|
$
|
34,139
|
|
|
|
$
|
59,159
|
|
|
$
|
33,704
|
|
Interest rate lock commitments
|
|
3,405
|
|
|
2,843
|
|
|
|
2,694
|
|
|
269
|
|
||||
Forward commitments to sell mortgage loans
|
|
—
|
|
|
14
|
|
|
|
1,486
|
|
|
1,457
|
|
||||
Foreign exchange contracts
|
|
1,342
|
|
|
227
|
|
|
|
1,337
|
|
|
229
|
|
||||
Total derivatives not designated as hedging instruments under ASC 815
|
|
$
|
64,266
|
|
|
$
|
37,223
|
|
|
|
$
|
64,676
|
|
|
$
|
35,659
|
|
Total Derivatives
|
|
$
|
73,172
|
|
|
$
|
52,069
|
|
|
|
$
|
68,088
|
|
|
$
|
35,671
|
|
|
160
|
|
|
|
|
(Dollars in thousands)
|
|
December 31, 2018
|
||||||
Maturity Date
|
|
Notional
Amount
|
|
Fair Value
Asset (Liability)
|
||||
Interest Rate Swaps:
|
|
|
|
|
||||
June 2019
|
|
$
|
200,000
|
|
|
$
|
957
|
|
July 2019
|
|
250,000
|
|
|
2,196
|
|
||
August 2019
|
|
275,000
|
|
|
3,117
|
|
||
Interest Rate Collars:
|
|
|
|
|
||||
September 2023
|
|
144,643
|
|
|
(1,656
|
)
|
||
Total Cash Flow Hedges
|
|
$
|
869,643
|
|
|
$
|
4,614
|
|
|
|
Years Ended December 31,
|
||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Unrealized gain at beginning of period
|
|
$
|
11,902
|
|
|
$
|
6,944
|
|
Amount reclassified from accumulated other comprehensive income to interest expense on deposits and junior subordinated debentures
|
|
(7,313
|
)
|
|
(19
|
)
|
||
Amount of gain recognized in other comprehensive income
|
|
6,153
|
|
|
4,977
|
|
||
Unrealized gain at end of period
|
|
$
|
10,742
|
|
|
$
|
11,902
|
|
|
161
|
|
|
|
|
|
|
|
December 31, 2018
|
||||||||||
(Dollars in thousands)
Derivatives in Fair Value
Hedging Relationships
|
Location in the Statement of Condition
|
|
Carrying Amount of the Hedged Assets/(Liabilities)
|
|
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
|
|
Cumulative Amount of Fair Value Hedging Adjustment Remaining for any Hedged Assets (Liabilities) for which Hedge Accounting has been Discontinued
|
||||||
Interest rate swaps
|
Loans, net of unearned income, excluding covered loans
|
|
$
|
135,944
|
|
|
$
|
(953
|
)
|
|
$
|
—
|
|
|
Available-for-sale debt securities
|
|
1,497
|
|
|
58
|
|
|
—
|
|
(Dollars in thousands)
Derivatives in Fair Value
Hedging Relationships
|
Location of Gain or (Loss) Recognized in Income on Derivative
|
|
Year Ended
December 31,
|
||
2018
|
|||||
Interest rate swaps
|
Interest and fees on loans
|
|
$
|
(131
|
)
|
|
Interest income - investment securities
|
|
—
|
|
|
162
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
December 31,
|
||||||
Derivative
|
|
Location in income statement
|
|
2018
|
|
2017
|
||||
Interest rate swaps and caps
|
|
Trading gains (losses), net
|
|
$
|
(75
|
)
|
|
$
|
(848
|
)
|
Mortgage banking derivatives
|
|
Mortgage banking revenue
|
|
(792
|
)
|
|
1,314
|
|
||
Covered call options
|
|
Fees from covered call options
|
|
3,519
|
|
|
4,402
|
|
||
Foreign exchange contracts
|
|
Trading gains (losses), net
|
|
20
|
|
|
(38
|
)
|
|
163
|
|
|
|
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||
|
Fair Value
|
|
Fair Value
|
||||||||||||
(Dollars in thousands)
|
December 31,
2018
|
|
December 31,
2017
|
|
December 31,
2018 |
|
December 31,
2017 |
||||||||
Gross Amounts Recognized
|
$
|
68,425
|
|
|
$
|
48,985
|
|
|
$
|
62,571
|
|
|
$
|
33,716
|
|
Less: Amounts offset in the Statements of Condition
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net amount presented in the Statements of Condition
|
$
|
68,425
|
|
|
$
|
48,985
|
|
|
$
|
62,571
|
|
|
$
|
33,716
|
|
Gross amounts not offset in the Statements of Condition
|
|
|
|
|
|
|
|
||||||||
Offsetting Derivative Positions
|
$
|
(28,124
|
)
|
|
$
|
(14,878
|
)
|
|
$
|
(28,124
|
)
|
|
$
|
(14,878
|
)
|
Collateral Posted
|
(23,810
|
)
|
|
(18,060
|
)
|
|
(2,640
|
)
|
|
(2,220
|
)
|
||||
Net Credit Exposure
|
$
|
16,491
|
|
|
$
|
16,047
|
|
|
$
|
31,807
|
|
|
$
|
16,618
|
|
•
|
Level 1 — unadjusted quoted prices in active markets for identical assets or liabilities.
|
•
|
Level 2 — inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability or inputs that are derived principally from or corroborated by observable market data by correlation or other means.
|
•
|
Level 3 — significant unobservable inputs that reflect the Company’s own assumptions that market participants would use in pricing the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
|
|
164
|
|
|
|
|
|
165
|
|
|
|
|
|
|
December 31, 2018
|
||||||||||||||
(Dollars in thousands)
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
|
$
|
126,404
|
|
|
$
|
126,404
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. Government agencies
|
|
140,307
|
|
|
—
|
|
|
137,157
|
|
|
3,150
|
|
||||
Municipal
|
|
138,490
|
|
|
—
|
|
|
29,564
|
|
|
108,926
|
|
||||
Corporate notes
|
|
91,045
|
|
|
—
|
|
|
91,045
|
|
|
—
|
|
||||
Mortgage-backed
|
|
1,629,835
|
|
|
—
|
|
|
1,629,835
|
|
|
—
|
|
||||
Trading account securities
|
|
1,692
|
|
|
—
|
|
|
1,692
|
|
|
—
|
|
||||
Equity securities with readily determinable fair value
|
|
34,717
|
|
|
—
|
|
|
34,717
|
|
|
—
|
|
||||
Mortgage loans held-for-sale
|
|
264,070
|
|
|
—
|
|
|
264,070
|
|
|
—
|
|
||||
Loans held-for-investment
|
|
93,857
|
|
|
—
|
|
|
82,510
|
|
|
11,347
|
|
||||
MSRs
|
|
75,183
|
|
|
—
|
|
|
—
|
|
|
75,183
|
|
||||
Nonqualified deferred compensations assets
|
|
11,282
|
|
|
—
|
|
|
11,282
|
|
|
—
|
|
||||
Derivative assets
|
|
73,172
|
|
|
—
|
|
|
70,715
|
|
|
2,457
|
|
||||
Total
|
|
$
|
2,680,054
|
|
|
$
|
126,404
|
|
|
$
|
2,352,587
|
|
|
$
|
201,063
|
|
Derivative liabilities
|
|
$
|
68,088
|
|
|
$
|
—
|
|
|
$
|
68,088
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
December 31, 2017
|
||||||||||||||
(Dollars in thousands)
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
|
$
|
143,822
|
|
|
$
|
143,822
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. Government agencies
|
|
156,915
|
|
|
—
|
|
|
153,136
|
|
|
3,779
|
|
||||
Municipal
|
|
115,352
|
|
|
—
|
|
|
38,171
|
|
|
77,181
|
|
||||
Corporate notes
|
|
31,050
|
|
|
—
|
|
|
31,050
|
|
|
—
|
|
||||
Mortgage-backed
|
|
1,319,725
|
|
|
—
|
|
|
1,319,725
|
|
|
—
|
|
||||
Equity securities
|
|
36,802
|
|
|
—
|
|
|
36,802
|
|
|
—
|
|
||||
Trading account securities
|
|
995
|
|
|
—
|
|
|
995
|
|
|
—
|
|
||||
Mortgage loans held-for-sale
|
|
313,592
|
|
|
—
|
|
|
313,592
|
|
|
—
|
|
||||
Loans held-for-investment
|
|
33,717
|
|
|
—
|
|
|
—
|
|
|
33,717
|
|
||||
MSRs
|
|
33,676
|
|
|
—
|
|
|
—
|
|
|
33,676
|
|
||||
Nonqualified deferred compensations assets
|
|
11,065
|
|
|
—
|
|
|
11,065
|
|
|
—
|
|
||||
Derivative assets
|
|
52,069
|
|
|
—
|
|
|
49,912
|
|
|
2,157
|
|
||||
Total
|
|
$
|
2,248,780
|
|
|
$
|
143,822
|
|
|
$
|
1,954,448
|
|
|
$
|
150,510
|
|
Derivative liabilities
|
|
$
|
35,671
|
|
|
$
|
—
|
|
|
$
|
35,671
|
|
|
$
|
—
|
|
|
166
|
|
|
|
|
|
|
|
U.S. Government Agencies
|
|
Loans held-for-investment
|
|
MSRs
|
|
Derivative assets
|
||||||||||
(Dollars in thousands)
|
Municipal
|
|
|
|
|
||||||||||||||
Balance at January 1, 2018
|
$
|
77,181
|
|
|
$
|
3,779
|
|
|
$
|
33,717
|
|
|
$
|
33,676
|
|
|
$
|
2,157
|
|
Total net gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
(1)
|
—
|
|
|
—
|
|
|
(1,077
|
)
|
|
27,701
|
|
|
300
|
|
|||||
Other comprehensive loss
|
(8,541
|
)
|
|
(314
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Purchases
(2)
|
63,644
|
|
|
—
|
|
|
—
|
|
|
13,806
|
|
|
—
|
|
|||||
Issuances
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Settlements
|
(23,358
|
)
|
|
(315
|
)
|
|
(28,367
|
)
|
|
—
|
|
|
—
|
|
|||||
Net transfers into/(out of) Level 3
|
—
|
|
|
—
|
|
|
7,074
|
|
|
—
|
|
|
—
|
|
|||||
Balance at December 31, 2018
|
$
|
108,926
|
|
|
$
|
3,150
|
|
|
$
|
11,347
|
|
|
$
|
75,183
|
|
|
$
|
2,457
|
|
(1)
|
Changes in the balance of MSRs and derivative assets as presented in the table above are recorded as a component of mortgage banking revenue in non-interest income. Changes in the balance of loans held-for-investment related to fair value adjustments are recorded as other non-interest income.
|
(2)
|
Purchased as a part of the Veterans First business combination. See Note 7 - Business Combinations and Asset Acquisitions for further discussion.
|
(Dollars in thousands)
|
Municipal
|
|
U.S. Government Agencies
|
|
Loans held-for-investment
|
|
MSRs
|
|
Derivative assets
|
||||||||||
Balance at January 1, 2017
|
$
|
79,626
|
|
|
$
|
—
|
|
|
$
|
22,137
|
|
|
$
|
19,103
|
|
|
$
|
2,291
|
|
Total net gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
(1)
|
—
|
|
|
—
|
|
|
1,025
|
|
|
14,573
|
|
|
(134
|
)
|
|||||
Other comprehensive loss
|
(501
|
)
|
|
(504
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Purchases
|
33,593
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Issuances
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Settlements
|
(35,537
|
)
|
|
—
|
|
|
(13,219
|
)
|
|
—
|
|
|
—
|
|
|||||
Net transfers into/(out of) Level 3
(2)
|
—
|
|
|
4,283
|
|
|
23,774
|
|
|
—
|
|
|
—
|
|
|||||
Balance at December 31, 2017
|
$
|
77,181
|
|
|
$
|
3,779
|
|
|
$
|
33,717
|
|
|
$
|
33,676
|
|
|
$
|
2,157
|
|
(1)
|
Changes in the balance of MSRs and derivative assets as presented in the table above are recorded as a component of mortgage banking revenue in non-interest income. Changes in the balance of loans held-for-investment related to fair value adjustments are recorded as other non-interest income.
|
(2)
|
Transfers into Level 3 relate to certain U.S. government agency available-for-sale investment securities and loans reclassified from the held-for-sale portfolio at the time of market conditions or other developments changing management's intent with respect to the disposition of those loans.
|
|
167
|
|
|
|
|
|
|
December 31, 2018
|
|
Year Ended
December 31, 2018
Fair Value Losses
Recognized, net
|
||||||||||||||||
(Dollars in thousands)
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||||
Impaired loans-collateral based
|
|
$
|
99,803
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
99,803
|
|
|
$
|
18,721
|
|
Other real estate owned
(1)
|
|
24,820
|
|
|
—
|
|
|
—
|
|
|
24,820
|
|
|
5,965
|
|
|||||
Total
|
|
$
|
124,623
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
124,623
|
|
|
$
|
24,686
|
|
(1)
|
Fair value losses recognized, net on other real estate owned include valuation adjustments and charge-offs during the respective period.
|
|
168
|
|
|
|
|
|
169
|
|
|
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
(Dollars in thousands)
|
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
392,200
|
|
|
$
|
392,200
|
|
|
$
|
277,591
|
|
|
$
|
277,591
|
|
Interest bearing deposits with banks
|
|
1,099,594
|
|
|
1,099,594
|
|
|
1,063,242
|
|
|
1,063,242
|
|
||||
Available-for-sale securities
|
|
2,126,081
|
|
|
2,126,081
|
|
|
1,803,666
|
|
|
1,803,666
|
|
||||
Held-to-maturity securities
|
|
1,067,439
|
|
|
1,036,096
|
|
|
826,449
|
|
|
812,516
|
|
||||
Trading account securities
|
|
1,692
|
|
|
1,692
|
|
|
995
|
|
|
995
|
|
||||
Equity securities with readily determinable fair value
|
|
34,717
|
|
|
34,717
|
|
|
—
|
|
|
—
|
|
||||
FHLB and FRB stock, at cost
|
|
91,354
|
|
|
91,354
|
|
|
89,989
|
|
|
89,989
|
|
||||
Brokerage customer receivables
|
|
12,609
|
|
|
12,609
|
|
|
26,431
|
|
|
26,431
|
|
||||
Mortgage loans held-for-sale, at fair value
|
|
264,070
|
|
|
264,070
|
|
|
313,592
|
|
|
313,592
|
|
||||
Loans held-for-investment, at fair value
|
|
93,857
|
|
|
93,857
|
|
|
33,717
|
|
|
33,717
|
|
||||
Loans held-for-investment, at amortized cost
|
|
23,726,834
|
|
|
23,780,739
|
|
|
21,607,080
|
|
|
21,768,978
|
|
||||
MSRs
|
|
75,183
|
|
|
75,183
|
|
|
33,676
|
|
|
33,676
|
|
||||
Nonqualified deferred compensation assets
|
|
11,282
|
|
|
11,282
|
|
|
11,065
|
|
|
11,065
|
|
||||
Derivative assets
|
|
73,172
|
|
|
73,172
|
|
|
52,069
|
|
|
52,069
|
|
||||
Accrued interest receivable and other
|
|
260,281
|
|
|
260,281
|
|
|
227,649
|
|
|
227,649
|
|
||||
Total financial assets
|
|
$
|
29,330,365
|
|
|
$
|
29,352,927
|
|
|
$
|
26,367,211
|
|
|
$
|
26,515,176
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Non-maturity deposits
|
|
$
|
20,833,837
|
|
|
$
|
20,833,837
|
|
|
$
|
18,775,977
|
|
|
$
|
18,775,977
|
|
Deposits with stated maturities
|
|
5,260,841
|
|
|
5,283,063
|
|
|
4,407,370
|
|
|
4,350,004
|
|
||||
FHLB advances
|
|
426,326
|
|
|
429,830
|
|
|
559,663
|
|
|
544,750
|
|
||||
Other borrowings
|
|
393,855
|
|
|
393,855
|
|
|
266,123
|
|
|
266,123
|
|
||||
Subordinated notes
|
|
139,210
|
|
|
138,345
|
|
|
139,088
|
|
|
144,266
|
|
||||
Junior subordinated debentures
|
|
253,566
|
|
|
263,846
|
|
|
253,566
|
|
|
264,696
|
|
||||
Derivative liabilities
|
|
68,088
|
|
|
68,088
|
|
|
35,671
|
|
|
35,671
|
|
||||
Accrued interest payable
|
|
16,025
|
|
|
16,025
|
|
|
8,030
|
|
|
8,030
|
|
||||
Total financial liabilities
|
|
$
|
27,391,748
|
|
|
$
|
27,426,889
|
|
|
$
|
24,445,488
|
|
|
$
|
24,389,517
|
|
|
170
|
|
|
|
|
|
|
2018
|
|
2017
|
||||
Common Stock:
|
|
|
|
|
||||
Shares authorized
|
|
100,000,000
|
|
|
100,000,000
|
|
||
Shares issued
|
|
56,518,119
|
|
|
56,068,220
|
|
||
Shares outstanding
|
|
56,407,558
|
|
|
55,965,207
|
|
||
Cash dividend per share
|
|
$
|
0.76
|
|
|
$
|
0.56
|
|
Preferred Stock:
|
|
|
|
|
||||
Shares authorized
|
|
20,000,000
|
|
|
20,000,000
|
|
||
Shares issued
|
|
5,000,000
|
|
|
5,000,000
|
|
||
Shares outstanding
|
|
5,000,000
|
|
|
5,000,000
|
|
|
171
|
|
|
|
|
|
172
|
|
|
|
|
(In thousands)
|
|
Accumulated
Unrealized
Losses on Securities
|
|
Accumulated
Unrealized
Gains (Losses) on Derivative
Instruments
|
|
Accumulated
Foreign
Currency
Translation
Adjustments
|
|
Total
Accumulated
Other
Comprehensive
Loss
|
||||||||
Balance at January 1, 2018
|
|
$
|
(15,813
|
)
|
|
$
|
7,164
|
|
|
$
|
(33,186
|
)
|
|
$
|
(41,835
|
)
|
Cumulative effect adjustment from the adoption of:
|
|
|
|
|
|
|
|
|
||||||||
ASU 2016-01
|
|
(1,880
|
)
|
|
—
|
|
|
—
|
|
|
(1,880
|
)
|
||||
ASU 2018-02
|
|
(4,517
|
)
|
|
1,543
|
|
|
—
|
|
|
(2,974
|
)
|
||||
Other comprehensive (loss) income during the period, net of tax, before reclassification
|
|
(20,054
|
)
|
|
4,498
|
|
|
(9,190
|
)
|
|
(24,746
|
)
|
||||
Amount reclassified from accumulated other comprehensive income into net income, net of tax
|
|
(24
|
)
|
|
(5,348
|
)
|
|
—
|
|
|
(5,372
|
)
|
||||
Amount reclassified from accumulated other comprehensive income related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale
|
|
(65
|
)
|
|
—
|
|
|
—
|
|
|
(65
|
)
|
||||
Net other comprehensive loss during the period, net of tax
|
|
$
|
(20,143
|
)
|
|
$
|
(850
|
)
|
|
$
|
(9,190
|
)
|
|
$
|
(30,183
|
)
|
Balance at December 31, 2018
|
|
$
|
(42,353
|
)
|
|
$
|
7,857
|
|
|
$
|
(42,376
|
)
|
|
$
|
(76,872
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Balance at January 1, 2017
|
|
$
|
(29,309
|
)
|
|
$
|
4,165
|
|
|
$
|
(40,184
|
)
|
|
$
|
(65,328
|
)
|
Other comprehensive income during the period, net of tax, before reclassification
|
|
14,417
|
|
|
3,010
|
|
|
6,998
|
|
|
24,425
|
|
||||
Amount reclassified from accumulated other comprehensive income into net income, net of tax
|
|
(27
|
)
|
|
(11
|
)
|
|
—
|
|
|
(38
|
)
|
||||
Amount reclassified from accumulated other comprehensive income related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale
|
|
(894
|
)
|
|
—
|
|
|
—
|
|
|
(894
|
)
|
||||
Net other comprehensive income during the period, net of tax
|
|
$
|
13,496
|
|
|
$
|
2,999
|
|
|
$
|
6,998
|
|
|
$
|
23,493
|
|
Balance at December 31, 2017
|
|
$
|
(15,813
|
)
|
|
$
|
7,164
|
|
|
$
|
(33,186
|
)
|
|
$
|
(41,835
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Balance at January 1, 2016
|
|
$
|
(17,674
|
)
|
|
$
|
(2,193
|
)
|
|
$
|
(42,841
|
)
|
|
$
|
(62,708
|
)
|
Other comprehensive (loss) income during the period, net of tax, before reclassification
|
|
(17,554
|
)
|
|
4,464
|
|
|
2,657
|
|
|
(10,433
|
)
|
||||
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax
|
|
(4,641
|
)
|
|
1,894
|
|
|
—
|
|
|
(2,747
|
)
|
||||
Amount reclassified from accumulated other comprehensive income related to amortization of unrealized losses on investment securities transferred to held-to-maturity from available-for-sale
|
|
10,560
|
|
|
—
|
|
|
—
|
|
|
10,560
|
|
||||
Net other comprehensive (loss) income during the period, net of tax
|
|
$
|
(11,635
|
)
|
|
$
|
6,358
|
|
|
$
|
2,657
|
|
|
$
|
(2,620
|
)
|
Balance at December 31, 2016
|
|
$
|
(29,309
|
)
|
|
$
|
4,165
|
|
|
$
|
(40,184
|
)
|
|
$
|
(65,328
|
)
|
|
173
|
|
|
|
|
|
|
Amount Reclassified from Accumulated Other Comprehensive Income for the Year Ended,
|
|
|
||||||
|
|
|
|
|||||||
Details Regarding the Component of Accumulated Other Comprehensive Income
|
|
December 31,
|
|
Impacted Line on the Consolidated Statements of Income
|
||||||
|
2018
|
|
2017
|
|
||||||
Accumulated unrealized losses on available-for-sale securities
|
|
|
|
|
|
|
||||
Gains included in net income
|
|
$
|
33
|
|
|
$
|
45
|
|
|
Gains on investment securities, net
|
|
|
33
|
|
|
45
|
|
|
Income before taxes
|
||
Tax effect
|
|
(9
|
)
|
|
(18
|
)
|
|
Income tax expense
|
||
Net of tax
|
|
$
|
24
|
|
|
$
|
27
|
|
|
Net income
|
|
|
|
|
|
|
|
||||
Accumulated unrealized losses on derivative instruments
|
|
|
|
|
|
|
||||
Amount reclassified to interest expense on deposits
|
|
$
|
(7,549
|
)
|
|
$
|
(1,085
|
)
|
|
Interest on deposits
|
Amount reclassified to interest expense on other borrowings
|
|
236
|
|
|
—
|
|
|
Interest on other borrowings
|
||
Amount reclassified to interest expense on junior subordinated debentures
|
|
—
|
|
|
1,066
|
|
|
Interest on junior subordinated debentures
|
||
|
|
7,313
|
|
|
19
|
|
|
Income before taxes
|
||
Tax effect
|
|
(1,965
|
)
|
|
(8
|
)
|
|
Income tax expense
|
||
Net of tax
|
|
$
|
5,348
|
|
|
$
|
11
|
|
|
Net income
|
|
174
|
|
|
|
|
(Dollars in thousands)
|
|
Community
Banking
|
|
Specialty
Finance
|
|
Wealth
Management
|
|
Total Operating Segments
|
|
Intersegment Eliminations
|
|
Consolidated
|
||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$
|
791,838
|
|
|
$
|
136,981
|
|
|
$
|
17,455
|
|
|
$
|
946,274
|
|
|
$
|
18,629
|
|
|
$
|
964,903
|
|
Provision for credit losses
|
|
28,586
|
|
|
6,246
|
|
|
—
|
|
|
34,832
|
|
|
—
|
|
|
34,832
|
|
||||||
Non-interest income
|
|
238,668
|
|
|
65,898
|
|
|
91,896
|
|
|
396,462
|
|
|
(40,312
|
)
|
|
356,150
|
|
||||||
Non-interest expense
|
|
681,749
|
|
|
84,248
|
|
|
81,774
|
|
|
847,771
|
|
|
(21,683
|
)
|
|
826,088
|
|
||||||
Income tax expense
|
|
79,361
|
|
|
30,325
|
|
|
7,281
|
|
|
116,967
|
|
|
—
|
|
|
116,967
|
|
||||||
Net income
|
|
$
|
240,810
|
|
|
$
|
82,060
|
|
|
$
|
20,296
|
|
|
$
|
343,166
|
|
|
$
|
—
|
|
|
$
|
343,166
|
|
Total assets at end of year
|
|
$
|
25,438,454
|
|
|
$
|
5,073,011
|
|
|
$
|
733,384
|
|
|
$
|
31,244,849
|
|
|
$
|
—
|
|
|
$
|
31,244,849
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$
|
677,481
|
|
|
$
|
118,320
|
|
|
$
|
18,919
|
|
|
$
|
814,720
|
|
|
$
|
17,356
|
|
|
$
|
832,076
|
|
Provision for credit losses
|
|
27,059
|
|
|
2,709
|
|
|
—
|
|
|
29,768
|
|
|
—
|
|
|
29,768
|
|
||||||
Non-interest income
|
|
211,354
|
|
|
60,405
|
|
|
84,312
|
|
|
356,071
|
|
|
(36,565
|
)
|
|
319,506
|
|
||||||
Non-interest expense
|
|
599,455
|
|
|
74,559
|
|
|
77,012
|
|
|
751,026
|
|
|
(19,209
|
)
|
|
731,817
|
|
||||||
Income tax expense
|
|
87,486
|
|
|
35,775
|
|
|
9,054
|
|
|
132,315
|
|
|
—
|
|
|
132,315
|
|
||||||
Net income
|
|
$
|
174,835
|
|
|
$
|
65,682
|
|
|
$
|
17,165
|
|
|
$
|
257,682
|
|
|
$
|
—
|
|
|
$
|
257,682
|
|
Total assets at end of year
|
|
$
|
22,781,923
|
|
|
$
|
4,515,766
|
|
|
$
|
618,281
|
|
|
$
|
27,915,970
|
|
|
$
|
—
|
|
|
$
|
27,915,970
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$
|
588,847
|
|
|
$
|
98,248
|
|
|
$
|
18,611
|
|
|
$
|
705,706
|
|
|
$
|
16,487
|
|
|
$
|
722,193
|
|
Provision for credit losses
|
|
30,862
|
|
|
3,222
|
|
|
—
|
|
|
34,084
|
|
|
—
|
|
|
34,084
|
|
||||||
Non-interest income
|
|
230,414
|
|
|
49,706
|
|
|
78,478
|
|
|
358,598
|
|
|
(33,168
|
)
|
|
325,430
|
|
||||||
Non-interest expense
|
|
556,798
|
|
|
66,460
|
|
|
75,108
|
|
|
698,366
|
|
|
(16,681
|
)
|
|
681,685
|
|
||||||
Income tax expense
|
|
86,933
|
|
|
29,512
|
|
|
8,534
|
|
|
124,979
|
|
|
—
|
|
|
124,979
|
|
||||||
Net income
|
|
$
|
144,668
|
|
|
$
|
48,760
|
|
|
$
|
13,447
|
|
|
$
|
206,875
|
|
|
$
|
—
|
|
|
$
|
206,875
|
|
Total assets at end of year
|
|
$
|
21,172,080
|
|
|
$
|
3,884,373
|
|
|
$
|
612,100
|
|
|
$
|
25,668,553
|
|
|
$
|
—
|
|
|
$
|
25,668,553
|
|
|
175
|
|
|
|
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
|
||||
Cash
|
|
$
|
37,931
|
|
|
$
|
78,045
|
|
Available-for-sale debt securities and equity securities with readily determinable fair value
|
|
12,765
|
|
|
14,461
|
|
||
Investment in and receivable from subsidiaries
|
|
3,660,968
|
|
|
3,249,202
|
|
||
Loans, net of unearned income
|
|
1,200
|
|
|
1,845
|
|
||
Allowance for loan losses
|
|
—
|
|
|
—
|
|
||
Net loans
|
|
$
|
1,200
|
|
|
$
|
1,845
|
|
Goodwill
|
|
8,371
|
|
|
8,371
|
|
||
Other assets
|
|
206,902
|
|
|
174,781
|
|
||
Total assets
|
|
$
|
3,928,137
|
|
|
$
|
3,526,705
|
|
|
|
|
|
|
||||
Liabilities and Shareholders’ Equity
|
|
|
|
|
||||
Other liabilities
|
|
$
|
75,609
|
|
|
$
|
66,909
|
|
Subordinated notes
|
|
139,210
|
|
|
139,088
|
|
||
Other borrowings
|
|
192,182
|
|
|
90,203
|
|
||
Junior subordinated debentures
|
|
253,566
|
|
|
253,566
|
|
||
Shareholders’ equity
|
|
3,267,570
|
|
|
2,976,939
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
3,928,137
|
|
|
$
|
3,526,705
|
|
|
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Income
|
|
|
|
|
|
|
||||||
Dividends and other revenue from subsidiaries
|
|
$
|
171,388
|
|
|
$
|
155,969
|
|
|
$
|
89,184
|
|
Other income
|
|
4
|
|
|
2,488
|
|
|
4,344
|
|
|||
Total income
|
|
$
|
171,392
|
|
|
$
|
158,457
|
|
|
$
|
93,528
|
|
Expenses
|
|
|
|
|
|
|
||||||
Interest expense
|
|
$
|
22,375
|
|
|
$
|
19,207
|
|
|
$
|
18,498
|
|
Salaries and employee benefits
|
|
64,726
|
|
|
50,683
|
|
|
34,299
|
|
|||
Other expenses
|
|
108,038
|
|
|
74,618
|
|
|
62,778
|
|
|||
Total expenses
|
|
$
|
195,139
|
|
|
$
|
144,508
|
|
|
$
|
115,575
|
|
(Loss) income before income taxes and equity in undistributed income of subsidiaries
|
|
$
|
(23,747
|
)
|
|
$
|
13,949
|
|
|
$
|
(22,047
|
)
|
Income tax benefit
|
|
34,186
|
|
|
47,139
|
|
|
31,061
|
|
|||
Income before equity in undistributed net income of subsidiaries
|
|
$
|
10,439
|
|
|
$
|
61,088
|
|
|
$
|
9,014
|
|
Equity in undistributed net income of subsidiaries
|
|
332,727
|
|
|
196,594
|
|
|
197,861
|
|
|||
Net income
|
|
$
|
343,166
|
|
|
$
|
257,682
|
|
|
$
|
206,875
|
|
|
176
|
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Operating Activities:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
343,166
|
|
|
$
|
257,682
|
|
|
$
|
206,875
|
|
Adjustments to reconcile net income to net cash provided by (used for) operating activities
|
|
|
|
|
|
|
||||||
Provision for credit losses
|
|
56
|
|
|
—
|
|
|
—
|
|
|||
Gain on early extinguishment of debt
|
|
—
|
|
|
—
|
|
|
(4,305
|
)
|
|||
Depreciation and amortization
|
|
11,943
|
|
|
10,783
|
|
|
10,400
|
|
|||
Deferred income tax expense (benefit)
|
|
502
|
|
|
2,809
|
|
|
(601
|
)
|
|||
Stock-based compensation expense
|
|
6,025
|
|
|
5,185
|
|
|
3,762
|
|
|||
Decrease (increase) in other assets
|
|
3,685
|
|
|
1,956
|
|
|
(319
|
)
|
|||
Increase in other liabilities
|
|
650
|
|
|
9,967
|
|
|
9,618
|
|
|||
Equity in undistributed net income of subsidiaries
|
|
(332,727
|
)
|
|
(196,594
|
)
|
|
(197,861
|
)
|
|||
Net Cash Provided by Operating Activities
|
|
$
|
33,300
|
|
|
$
|
91,788
|
|
|
$
|
27,569
|
|
Investing Activities:
|
|
|
|
|
|
|
||||||
Capital distributions from (contributions to) subsidiaries, net
|
|
$
|
4,632
|
|
|
$
|
(42,736
|
)
|
|
$
|
(118,575
|
)
|
Net cash paid for acquisitions, net
|
|
(87,081
|
)
|
|
—
|
|
|
(61,308
|
)
|
|||
Other investing activity, net
|
|
(57,143
|
)
|
|
(28,132
|
)
|
|
(18,051
|
)
|
|||
Net Cash Used for Investing Activities
|
|
$
|
(139,592
|
)
|
|
$
|
(70,868
|
)
|
|
$
|
(197,934
|
)
|
Financing Activities:
|
|
|
|
|
|
|
||||||
Increase (decrease) in subordinated notes, other borrowings and junior subordinated debentures, net
|
|
$
|
101,910
|
|
|
$
|
20,008
|
|
|
$
|
(26,251
|
)
|
Proceeds from the issuance of common stock, net
|
|
—
|
|
|
—
|
|
|
152,911
|
|
|||
Issuance of common shares resulting from exercise of stock options, employee stock purchase plan and conversion of common stock warrants
|
|
15,903
|
|
|
28,229
|
|
|
15,828
|
|
|||
Dividends paid
|
|
(50,987
|
)
|
|
(40,543
|
)
|
|
(38,568
|
)
|
|||
Common stock repurchases for tax withholdings related to stock-based compensation
|
|
(648
|
)
|
|
(397
|
)
|
|
(616
|
)
|
|||
Net Cash Provided by Financing Activities
|
|
$
|
66,178
|
|
|
$
|
7,297
|
|
|
$
|
103,304
|
|
Net (Decrease) Increase in Cash and Cash Equivalents
|
|
$
|
(40,114
|
)
|
|
$
|
28,217
|
|
|
$
|
(67,061
|
)
|
Cash and Cash Equivalents at Beginning of Year
|
|
78,045
|
|
|
49,828
|
|
|
116,889
|
|
|||
Cash and Cash Equivalents at End of Year
|
|
$
|
37,931
|
|
|
$
|
78,045
|
|
|
$
|
49,828
|
|
|
177
|
|
|
|
|
(In thousands, except per share data)
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
|
|
|
$
|
343,166
|
|
|
$
|
257,682
|
|
|
$
|
206,875
|
|
Less: Preferred stock dividends
|
|
|
|
8,200
|
|
|
9,778
|
|
|
14,513
|
|
|||
Net income applicable to common shares—Basic
|
|
(A)
|
|
$
|
334,966
|
|
|
$
|
247,904
|
|
|
$
|
192,362
|
|
Add: Dividends on convertible preferred stock, if dilutive
|
|
|
|
—
|
|
|
1,578
|
|
|
6,313
|
|
|||
Net income applicable to common shares—Diluted
|
|
(B)
|
|
$
|
334,966
|
|
|
$
|
249,482
|
|
|
$
|
198,675
|
|
Weighted average common shares outstanding
|
|
(C)
|
|
56,300
|
|
|
54,703
|
|
|
50,278
|
|
|||
Effect of dilutive potential common shares:
|
|
|
|
|
|
|
|
|
||||||
Common stock equivalents
|
|
|
|
908
|
|
|
998
|
|
|
894
|
|
|||
Convertible preferred stock, if dilutive
|
|
|
|
—
|
|
|
985
|
|
|
3,100
|
|
|||
Total dilutive potential common shares
|
|
|
|
908
|
|
|
1,983
|
|
|
3,994
|
|
|||
Weighted average common shares and effect of dilutive potential common shares
|
|
(D)
|
|
57,208
|
|
|
56,686
|
|
|
54,272
|
|
|||
Net income per common share:
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
(A/C)
|
|
$
|
5.95
|
|
|
$
|
4.53
|
|
|
$
|
3.83
|
|
Diluted
|
|
(B/D)
|
|
5.86
|
|
|
4.40
|
|
|
3.66
|
|
|
|
2018 Quarters
|
|
2017 Quarters
|
||||||||||||||||||||||||||||
(In thousands, except per share data)
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||||||||||
Interest income
|
|
$
|
261,205
|
|
|
284,047
|
|
|
304,962
|
|
|
320,596
|
|
|
$
|
215,759
|
|
|
231,181
|
|
|
247,688
|
|
|
251,840
|
|
||||||
Interest expense
|
|
36,123
|
|
|
45,877
|
|
|
57,399
|
|
|
66,508
|
|
|
23,179
|
|
|
26,772
|
|
|
31,700
|
|
|
32,741
|
|
||||||||
Net interest income
|
|
225,082
|
|
|
238,170
|
|
|
247,563
|
|
|
254,088
|
|
|
192,580
|
|
|
204,409
|
|
|
215,988
|
|
|
219,099
|
|
||||||||
Provision for credit losses
|
|
8,346
|
|
|
5,043
|
|
|
11,042
|
|
|
10,401
|
|
|
5,209
|
|
|
8,891
|
|
|
7,896
|
|
|
7,772
|
|
||||||||
Net interest income after provision for credit losses
|
|
216,736
|
|
|
233,127
|
|
|
236,521
|
|
|
243,687
|
|
|
187,371
|
|
|
195,518
|
|
|
208,092
|
|
|
211,327
|
|
||||||||
Non-interest income, excluding net securities gains (losses)
|
|
86,030
|
|
|
95,221
|
|
|
99,840
|
|
|
77,957
|
|
|
68,820
|
|
|
89,925
|
|
|
79,692
|
|
|
81,024
|
|
||||||||
(Losses) gains on investment securities, net
|
|
(351
|
)
|
|
12
|
|
|
90
|
|
|
(2,649
|
)
|
|
(55
|
)
|
|
47
|
|
|
39
|
|
|
14
|
|
||||||||
Non-interest expense
|
|
194,349
|
|
|
206,769
|
|
|
213,637
|
|
|
211,333
|
|
|
168,118
|
|
|
183,544
|
|
|
183,575
|
|
|
196,580
|
|
||||||||
Income before taxes
|
|
108,066
|
|
|
121,591
|
|
|
122,814
|
|
|
107,662
|
|
|
88,018
|
|
|
101,946
|
|
|
104,248
|
|
|
95,785
|
|
||||||||
Income tax expense
|
|
26,085
|
|
|
32,011
|
|
|
30,866
|
|
|
28,005
|
|
|
29,640
|
|
|
37,049
|
|
|
38,622
|
|
|
27,004
|
|
||||||||
Net income
|
|
$
|
81,981
|
|
|
89,580
|
|
|
91,948
|
|
|
79,657
|
|
|
$
|
58,378
|
|
|
64,897
|
|
|
65,626
|
|
|
68,781
|
|
||||||
Preferred stock dividends
|
|
2,050
|
|
|
2,050
|
|
|
2,050
|
|
|
2,050
|
|
|
3,628
|
|
|
2,050
|
|
|
2,050
|
|
|
2,050
|
|
||||||||
Net income applicable to common shares
|
|
$
|
79,931
|
|
|
87,530
|
|
|
89,898
|
|
|
77,607
|
|
|
$
|
54,750
|
|
|
62,847
|
|
|
63,576
|
|
|
66,731
|
|
||||||
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
|
$
|
1.42
|
|
|
$
|
1.55
|
|
|
$
|
1.59
|
|
|
$
|
1.38
|
|
|
$
|
1.05
|
|
|
$
|
1.15
|
|
|
$
|
1.14
|
|
|
$
|
1.19
|
|
Diluted
|
|
1.40
|
|
|
1.53
|
|
|
1.57
|
|
|
1.35
|
|
|
1.00
|
|
|
1.11
|
|
|
1.12
|
|
|
1.17
|
|
||||||||
Cash dividends declared per common share
|
|
0.19
|
|
|
0.19
|
|
|
0.19
|
|
|
0.19
|
|
|
0.14
|
|
|
0.14
|
|
|
0.14
|
|
|
0.14
|
|
|
178
|
|
|
|
|
|
179
|
|
|
|
|
|
180
|
|
|
|
|
|
|
|
/s/ Edward J. Wehmer
|
|
/s/ David L. Stoehr
|
Edward J. Wehmer
|
|
David L. Stoehr
|
President and
|
|
Executive Vice President &
|
Chief Executive Officer
|
|
Chief Financial Officer
|
|
181
|
|
|
|
|
|
182
|
|
|
|
|
EQUITY COMPENSATION PLAN INFORMATION
|
|
|
|
|
|
|||||
Plan Category
|
|
Number of
securities to be issued
upon exercise of
outstanding options,
warrants and rights
(a)
|
|
Weighted-average
exercise price of
outstanding options,
warrants and rights
(b)
|
|
Number of securities
remaining available
for future issuance
under equity
compensation plans
(excluding securities
reflected in column (a))
(c)
|
||||
Equity compensation plans approved by security holders
|
|
|
|
|
|
|
||||
WTFC 1997 Stock Incentive Plan, as amended
|
|
85,000
|
|
|
—
|
|
|
—
|
|
|
WTFC 2007 Stock Incentive Plan
|
|
472,692
|
|
|
$
|
40.59
|
|
|
—
|
|
WTFC 2015 Stock Incentive Plan
|
|
965,103
|
|
|
$
|
14.93
|
|
|
3,393,543
|
|
WTFC Employee Stock Purchase Plan
|
|
—
|
|
|
—
|
|
|
226,870
|
|
|
WTFC Directors Deferred Fee and Stock Plan
|
|
—
|
|
|
—
|
|
|
356,116
|
|
|
|
|
1,522,795
|
|
|
$
|
22.06
|
|
|
3,976,529
|
|
Equity compensation plans not approved by security holders
|
|
|
|
|
|
|
||||
N/A
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
|
1,522,795
|
|
|
$
|
22.06
|
|
|
3,976,529
|
|
|
183
|
|
|
|
|
|
184
|
|
|
|
|
1
|
Financial Statements
|
•
|
Consolidated Statements of Condition as of
December 31, 2018
and
2017
|
•
|
Consolidated Statements of Income for the Years Ended
December 31, 2018
,
2017
and
2016
|
•
|
Consolidated Statements of Comprehensive Income for the Years Ended
December 31, 2018
,
2017
and
2016
|
•
|
Consolidated Statements of Changes in Shareholders’ Equity for the Years Ended
December 31, 2018
,
2017
and
2016
|
•
|
Consolidated Statements of Cash Flows for the Years Ended
December 31, 2018
,
2017
and
2016
|
•
|
Notes to Consolidated Financial Statements
|
•
|
Report of Independent Registered Public Accounting Firm
|
2
|
Financial Statement Schedules
|
3
|
Exhibits
(Exhibits marked with a “*” denote management contracts or compensatory plans or arrangements)
|
|
|
Exhibit No.
|
Exhibit Description
|
Amended and Restated Articles of Incorporation of the Company, as amended (incorporated by reference to Exhibit 3.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006, Exhibits 3.1 and 3.2 of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on July 29, 2011 and Exhibit 3.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012).
|
|
|
|
Certificate of Designations of the Company filed on June 24, 2015 with the Secretary of State of the State of Illinois designating the preferences, limitations, voting powers and relative rights of the Series D Preferred Stock (incorporated by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 25, 2015).
|
|
|
|
Amended and Restated By-laws of the Company, as amended (incorporated by reference to Exhibit 3.2 of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 26, 2017).
|
|
|
|
4.1
|
Certain instruments defining the rights of the holders of long-term debt of the Company and certain of its subsidiaries, none of which authorize a total amount of indebtedness in excess of 10% of the total assets of the Company and its subsidiaries on a consolidated basis, have not been filed as Exhibits. The Company hereby agrees to furnish a copy of any of these agreements to the Securities and Exchange Commission upon request.
|
|
|
Subordinated Indenture, dated June 13, 2014, between the Company and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 13, 2014).
|
|
185
|
|
|
|
|
|
186
|
|
|
|
|
Amended and Restated Employment Agreement, dated December 19, 2008, between the Company and Edward J. Wehmer, President and Chief Executive Officer (incorporated by reference to Exhibit 10.4 of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on December 24, 2008).*
|
|
|
|
Amended and Restated Employment Agreement, dated December 19, 2008, between the Company and David A. Dykstra, Senior Executive Vice President and Chief Operating Officer (incorporated by reference to Exhibit 10.5 of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on December 24, 2008).*
|
|
|
|
Amended and Restated Employment Agreement, dated December 19, 2008, between the Company and Richard B. Murphy, Executive Vice President and Chief Credit Officer (incorporated by reference to Exhibit 10.7 of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on December 24, 2008).*
|
Amended and Restated Employment Agreement, dated December 19, 2008, between the Company and David L. Stoehr, Executive Vice President and Chief Financial Officer (incorporated by reference to Exhibit 10.6 of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on December 24, 2008).*
|
||
|
|
|
Employment Agreement, dated August 11, 2008, between the Company and Timothy Crane (incorporated by reference to Exhibit 10.18 of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2016).*
|
First Amendment to Employment Agreement, dated November 30, 2010, between the Company and Timothy Crane (incorporated by reference to Exhibit 10.19 of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2016).*
|
|
|
|
Wintrust Financial Corporation 1997 Stock Incentive Plan (incorporated by reference to Appendix A of the Proxy Statement relating to the May 22, 1997 Annual Meeting of Shareholders of the Company).*
|
|
|
|
First Amendment to Wintrust Financial Corporation 1997 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2000).*
|
|
|
|
Second Amendment to Wintrust Financial Corporation 1997 Stock Incentive Plan adopted by the Board of Directors on January 24, 2002 (incorporated by reference to Exhibit 99.3 of the Company’s Registration Statement on Form S-8 filed with the Securities and Exchange Commission on July 1, 2004).*
|
|
|
|
Third Amendment to Wintrust Financial Corporation 1997 Stock Incentive Plan adopted by the Board of Directors on May 27, 2004 (incorporated by reference to Exhibit 99.4 of the Company’s Registration Statement on Form S-8 filed with the Securities and Exchange Commission on July 1, 2004).*
|
|
|
|
Wintrust Financial Corporation 2007 Stock Incentive Plan, as amended (incorporated by reference to Exhibit 4.6 to the Company’s Registration Statement on Form S-8, filed with the Securities and Exchange Commission on November 8, 2011).*
|
|
|
|
Wintrust Financial Corporation 2015 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 1, 2015).
|
|
|
|
Form of Nonqualified Stock Option Agreement under the Company’s 2007 Stock Incentive Plan (incorporated by reference to Exhibit 10.31 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2006).*
|
|
|
|
Form of Nonqualified Stock Option Agreement under the Company’s 2015 Stock Incentive Plan (incorporated by reference to Exhibit 10.2 of the Company’s Quarter Report on Form 10-Q for the quarter ended March 31, 2016).*
|
|
|
|
Form of Restricted Stock Unit Award Agreement under the Company’s 2007 Stock Incentive Plan (incorporated by reference to Exhibit 10.32 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2006).*
|
|
|
|
Form of Performance Share Unit Award - Stock Settled under the Company's 2007 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013).*
|
|
|
|
Form of Performance Award Agreement - Share Settled under the Company's 2015 Stock Incentive Plan (incorporated by reference to Exhibit 10.3 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016).*
|
|
|
|
Form of Performance Share Unit Award - Cash Settled under the Company's 2007 Stock Incentive Plan (incorporated by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013).*
|
|
187
|
|
|
|
|
Form of Performance Share Unit Award - Cash Settled under the Company's 2015 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016).*
|
|
|
|
Form of Performance Award Agreement - Cash Settled under the Company's 2015 Stock Incentive Plan (incorporated by reference to Exhibit 10.4 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016).*
|
|
|
|
Form of Performance Cash Award under the Company's 2007 Stock Incentive Plan (incorporated by reference to Exhibit 10.3 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013).*
|
|
|
|
Form of Performance Share Unit Award - Shares Settled - Deferral Option under the Company’s 2007 Stock Incentive Plan (incorporated by reference to Exhibit 10.30 of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2016).
|
|
|
|
Form of Performance Award Agreement - Cash Settled/Share Settled under the Company’s 2015 Stock Incentive Plan (incorporated by reference to Exhibit 10.41 of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2018).
|
Form of Performance Share Unit Award - Cash Settled - Deferral Option under the Company’s 2007 Stock Incentive Plan (incorporated by reference to Exhibit 10.31 the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2016).
|
Wintrust Financial Corporation Employee Stock Purchase Plan, as amended (incorporated by reference to Annex A of the Company's definitive Proxy Statement filed with the Securities and Exchange Commission on April 24, 2012).*
|
|
|
|
Amended and Restated Wintrust Financial Corporation Employee Stock Purchase Plan, (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 25, 2018).*
|
|
|
|
Wintrust Financial Corporation Directors Deferred Fee and Stock Plan (incorporated by reference to Appendix B of the Proxy Statement relating to the May 24, 2001 Annual Meeting of Shareholders of the Company).*
|
|
|
|
Wintrust Financial Corporation 2005 Directors Deferred Fee and Stock Plan, as amended and restated (incorporated by reference to Exhibit 99.1 of the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on July 29, 2014).*
|
|
|
|
Form of Cash Incentive and Retention Award Agreement under the Company’s 2008 Long-Term Cash and Incentive Retention Plan with no Minimum Payout (incorporated by reference to Exhibit 10.3 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2008).*
|
Form of Director Indemnification Agreement (incorporated by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2009).
|
||
|
|
|
Form of Officer Indemnification Agreement (incorporated by reference to Exhibit 10.3 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2009).
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Subsidiaries of the Registrant.
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Consent of Independent Registered Public Accounting Firm.
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||
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Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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||
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Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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||
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Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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|
188
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|
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|
|
101.INS
|
XBRL Instance Document (1)
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|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
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101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
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|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
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|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
(1)
|
Includes the following financial information included in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2018
, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements.
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189
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190
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|
WINTRUST FINANCIAL CORPORATION (Registrant)
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February 28, 2019
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By:
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/s/ EDWARD J. WEHMER
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Edward J. Wehmer, President and
|
|
|
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|
Chief Executive Officer
|
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/s/ H. PATRICK HACKETT, JR.
H. Patrick Hackett, Jr. |
|
Chairman of the Board of Directors
|
|
February 28, 2019
|
|
|
|
||
/s/ EDWARD J. WEHMER
Edward J. Wehmer
|
|
President, Chief Executive Officer and Director
(Principal Executive Officer)
|
|
February 28, 2019
|
|
|
|
||
/s/ DAVID L. STOEHR
David L. Stoehr
|
|
Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
|
|
February 28, 2019
|
|
|
|
||
/s/ PETER D. CRIST
Peter D. Crist |
|
Director
|
|
February 28, 2019
|
|
|
|
||
/s/ BRUCE K. CROWTHER
Bruce K. Crowther |
|
Director
|
|
February 28, 2019
|
|
|
|
||
/s/ WILLIAM J. DOYLE
William J. Doyle
|
|
Director
|
|
February 28, 2019
|
|
|
|
|
|
/s/ ZED S. FRANCIS, III
Zed S. Francis, III
|
|
Director
|
|
February 28, 2019
|
|
|
|
||
/s/ MARLA F. GLABE
Marla F. Glabe
|
|
Director
|
|
February 28, 2019
|
|
|
|
||
/s/ SCOTT K. HEITMANN
Scott K. Heitmann
|
|
Director
|
|
February 28, 2019
|
|
|
|
||
/s/ CHRISTOPHER J. PERRY
Christopher J. Perry
|
|
Director
|
|
February 28, 2019
|
|
|
|
||
/s/ INGRID S. STAFFORD
Ingrid S. Stafford
|
|
Director
|
|
February 28, 2019
|
|
|
|
||
/s/ GARY D. “JOE” SWEENEY
Gary D. “Joe” Sweeney
|
|
Director
|
|
February 28, 2019
|
|
|
|
|
|
/s/ SHEILA G. TALTON
Sheila G. Talton
|
|
Director
|
|
February 28, 2019
|
|
191
|
|
Subsidiary
|
|
Jurisdiction
|
Barrington Bank & Trust Company, N.A.
|
|
United States
|
Beverly Bank & Trust Company, N.A.
|
|
United States
|
Crystal Lake Bank & Trust Company, N.A.
|
|
United States
|
Chicago Deferred Exchange Company, LLC
|
|
Delaware
|
Elektra Holding Company, LLC
|
|
Delaware
|
First Insurance Funding of Canada, Inc.
|
|
Canada
|
FIFC Edge International Corporation
|
|
United States
|
Great Lakes Advisors, LLC
|
|
Delaware
|
Hinsdale Bank & Trust Company
|
|
Illinois
|
Hyde Park Facilities, Inc.
|
|
Illinois
|
Lake Forest Bank & Trust Company, N.A.
|
|
United States
|
Libertyville Bank & Trust Company
|
|
Illinois
|
Northbrook Bank & Trust Company
|
|
Illinois
|
Old Plank Trail Community Bank, N.A.
|
|
United States
|
Schaumburg Bank & Trust Company, N.A.
|
|
United States
|
St. Charles Bank & Trust Company
|
|
Illinois
|
State Bank of the Lakes
|
|
Illinois
|
The Chicago Trust Company, N.A.
|
|
United States
|
Town Bank
|
|
Wisconsin
|
Tricom, Inc. of Milwaukee
|
|
Wisconsin
|
Village Bank & Trust
|
|
Illinois
|
Wintrust Investments, L.L.C.
|
|
Delaware
|
WHAMCO Holding Company
|
|
Illinois
|
Wheaton Bank and Trust Company
|
|
Illinois
|
Wintrust Asset Finance Inc.
|
|
Delaware
|
Wintrust Bank
|
|
Illinois
|
Community Financial Shares Statutory Trust II
|
|
Delaware
|
First Northwest Capital Trust I
|
|
Delaware
|
Northview Capital Trust I
|
|
Delaware
|
Suburban Illinois Capital Trust II
|
|
Delaware
|
Town Bankshares Capital Trust I
|
|
Delaware
|
Wintrust Capital Trust III
|
|
Delaware
|
Wintrust Statutory Trust IV
|
|
Connecticut
|
Wintrust Statutory Trust V
|
|
Connecticut
|
Wintrust Capital Trust VII
|
|
Delaware
|
Wintrust Capital Trust VIII
|
|
Delaware
|
Wintrust Capital Trust IX
|
|
Delaware
|
1.
|
I have reviewed this annual report on Form 10-K of Wintrust Financial Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounted 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 that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of 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/ EDWARD J. WEHMER
|
Name: Edward J. Wehmer
|
Title: President and Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 10-K of Wintrust Financial Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounted 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 that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of 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/ DAVID L. STOEHR
|
Name: David L. Stoehr
|
Title: Executive Vice President and Chief Financial Officer
|
(1)
|
The Annual Report of the Company on Form 10-K for the year ended December 31, 2018, as filed with the Securities and Exchange Commission on February 28, 2019, (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ EDWARD J. WEHMER
|
|
Name:
|
Edward J. Wehmer
|
Title:
|
President and Chief Executive Officer
|
Date:
|
February 28, 2019
|
/s/ DAVID L. STOEHR
|
|
Name:
|
David L. Stoehr
|
Title:
|
Executive Vice President and
Chief Financial Officer
|
Date:
|
February 28, 2019
|