|
☑
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Illinois
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36-3873352
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(State of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Title of Each Class
|
Ticker Symbol
|
Name of Each Exchange on Which Registered
|
Common Stock, no par value
|
WTFC
|
The NASDAQ Global Select Market
|
Series D Preferred Stock, no par value
|
WTFCM
|
The NASDAQ Global Select Market
|
Large accelerated filer
|
|
☑
|
|
|
Accelerated filer
|
|
☐
|
Non-accelerated filer
|
|
☐
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(Do not check if a smaller reporting company)
|
|
Smaller reporting company
|
|
☐
|
Emerging growth company
|
|
☐
|
|
|
|
|
|
|
|
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Page
|
|
PART I. — FINANCIAL INFORMATION
|
|
ITEM 1.
|
||
ITEM 2.
|
||
ITEM 3.
|
||
ITEM 4.
|
||
|
PART II. — OTHER INFORMATION
|
|
ITEM 1.
|
||
ITEM 1A.
|
||
ITEM 2.
|
||
ITEM 3.
|
Defaults Upon Senior Securities
|
NA
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ITEM 4.
|
Mine Safety Disclosures
|
NA
|
ITEM 5.
|
Other Information
|
NA
|
ITEM 6.
|
||
|
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
|
|||||||||||
|
(Unaudited)
|
|
|
|
(Unaudited)
|
||||||
(In thousands, except share data)
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
Assets
|
|
|
|
|
|
||||||
Cash and due from banks
|
$
|
349,118
|
|
|
$
|
286,167
|
|
|
$
|
270,765
|
|
Federal funds sold and securities purchased under resale agreements
|
309
|
|
|
309
|
|
|
58
|
|
|||
Interest bearing deposits with banks
|
1,943,743
|
|
|
2,164,560
|
|
|
1,609,852
|
|
|||
Available-for-sale securities, at fair value
|
3,570,959
|
|
|
3,106,214
|
|
|
2,185,782
|
|
|||
Held-to-maturity securities, at amortized cost, net of allowance for credit losses of $70 at March 31, 2020 ($879.2 million, $1.1 billion and $1.0 billion fair value at March 31, 2020, December 31, 2019 and March 31, 2019 respectively)
|
865,376
|
|
|
1,134,400
|
|
|
1,051,542
|
|
|||
Trading account securities
|
2,257
|
|
|
1,068
|
|
|
559
|
|
|||
Equity securities with readily determinable fair value
|
47,310
|
|
|
50,840
|
|
|
47,653
|
|
|||
Federal Home Loan Bank and Federal Reserve Bank stock
|
134,546
|
|
|
100,739
|
|
|
89,013
|
|
|||
Brokerage customer receivables
|
16,293
|
|
|
16,573
|
|
|
14,219
|
|
|||
Mortgage loans held-for-sale, at fair value
|
656,934
|
|
|
377,313
|
|
|
248,557
|
|
|||
Loans, net of unearned income
|
27,807,321
|
|
|
26,800,290
|
|
|
24,214,629
|
|
|||
Allowance for loan losses
|
(216,050
|
)
|
|
(156,828
|
)
|
|
(158,212
|
)
|
|||
Net loans
|
27,591,271
|
|
|
26,643,462
|
|
|
24,056,417
|
|
|||
Premises and equipment, net
|
764,583
|
|
|
754,328
|
|
|
676,037
|
|
|||
Lease investments, net
|
207,147
|
|
|
231,192
|
|
|
224,240
|
|
|||
Accrued interest receivable and other assets
|
1,460,168
|
|
|
1,061,141
|
|
|
888,492
|
|
|||
Trade date securities receivable
|
502,207
|
|
|
—
|
|
|
375,211
|
|
|||
Goodwill
|
643,441
|
|
|
645,220
|
|
|
573,658
|
|
|||
Other intangible assets
|
44,185
|
|
|
47,057
|
|
|
46,566
|
|
|||
Total assets
|
$
|
38,799,847
|
|
|
$
|
36,620,583
|
|
|
$
|
32,358,621
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
||||||
Deposits:
|
|
|
|
|
|
||||||
Non-interest bearing
|
$
|
7,556,755
|
|
|
$
|
7,216,758
|
|
|
$
|
6,353,456
|
|
Interest bearing
|
23,904,905
|
|
|
22,890,380
|
|
|
20,451,286
|
|
|||
Total deposits
|
31,461,660
|
|
|
30,107,138
|
|
|
26,804,742
|
|
|||
Federal Home Loan Bank advances
|
1,174,894
|
|
|
674,870
|
|
|
576,353
|
|
|||
Other borrowings
|
487,503
|
|
|
418,174
|
|
|
372,194
|
|
|||
Subordinated notes
|
436,179
|
|
|
436,095
|
|
|
139,235
|
|
|||
Junior subordinated debentures
|
253,566
|
|
|
253,566
|
|
|
253,566
|
|
|||
Accrued interest payable and other liabilities
|
1,285,652
|
|
|
1,039,490
|
|
|
840,559
|
|
|||
Total liabilities
|
35,099,454
|
|
|
32,929,333
|
|
|
28,986,649
|
|
|||
Shareholders’ Equity:
|
|
|
|
|
|
||||||
Preferred stock, no par value; 20,000,000 shares authorized at March 31, 2020, December 31, 2019 and March 31, 2019; Series D - $25 liquidation value; 5,000,000 shares issued and outstanding at March 31, 2020, December 31, 2019 and March 31, 2019
|
125,000
|
|
|
125,000
|
|
|
125,000
|
|
|||
Common stock, no par value; $1.00 stated value; 100,000,000 shares authorized at March 31, 2020, December 31, 2019 and March 31, 2019; 58,266,136 shares issued at March 31, 2020, 57,950,803 shares issued at December 31, 2019 and 56,765,450 shares issued at March 31, 2019
|
58,266
|
|
|
57,951
|
|
|
56,765
|
|
|||
Surplus
|
1,652,063
|
|
|
1,650,278
|
|
|
1,565,185
|
|
|||
Treasury stock, at cost, 720,784 shares at March 31, 2020, 128,912 shares at December 31, 2019, and 126,482 shares at March 31, 2019
|
(44,891
|
)
|
|
(6,931
|
)
|
|
(6,650
|
)
|
|||
Retained earnings
|
1,917,558
|
|
|
1,899,630
|
|
|
1,682,016
|
|
|||
Accumulated other comprehensive loss
|
(7,603
|
)
|
|
(34,678
|
)
|
|
(50,344
|
)
|
|||
Total shareholders’ equity
|
3,700,393
|
|
|
3,691,250
|
|
|
3,371,972
|
|
|||
Total liabilities and shareholders’ equity
|
$
|
38,799,847
|
|
|
$
|
36,620,583
|
|
|
$
|
32,358,621
|
|
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
|||||||
|
Three Months Ended
|
||||||
(In thousands, except per share data)
|
March 31,
2020 |
|
March 31,
2019 |
||||
Interest income
|
|
|
|
||||
Interest and fees on loans
|
$
|
301,839
|
|
|
$
|
296,987
|
|
Mortgage loans held-for-sale
|
3,165
|
|
|
2,209
|
|
||
Interest bearing deposits with banks
|
4,768
|
|
|
5,300
|
|
||
Federal funds sold and securities purchased under resale agreements
|
86
|
|
|
—
|
|
||
Investment securities
|
32,467
|
|
|
27,956
|
|
||
Trading account securities
|
7
|
|
|
8
|
|
||
Federal Home Loan Bank and Federal Reserve Bank stock
|
1,577
|
|
|
1,355
|
|
||
Brokerage customer receivables
|
158
|
|
|
155
|
|
||
Total interest income
|
344,067
|
|
|
333,970
|
|
||
Interest expense
|
|
|
|
||||
Interest on deposits
|
67,435
|
|
|
60,976
|
|
||
Interest on Federal Home Loan Bank advances
|
3,360
|
|
|
2,450
|
|
||
Interest on other borrowings
|
3,546
|
|
|
3,633
|
|
||
Interest on subordinated notes
|
5,472
|
|
|
1,775
|
|
||
Interest on junior subordinated debentures
|
2,811
|
|
|
3,150
|
|
||
Total interest expense
|
82,624
|
|
|
71,984
|
|
||
Net interest income
|
261,443
|
|
|
261,986
|
|
||
Provision for credit losses
|
52,961
|
|
|
10,624
|
|
||
Net interest income after provision for credit losses
|
208,482
|
|
|
251,362
|
|
||
Non-interest income
|
|
|
|
||||
Wealth management
|
25,941
|
|
|
23,977
|
|
||
Mortgage banking
|
48,326
|
|
|
18,158
|
|
||
Service charges on deposit accounts
|
11,265
|
|
|
8,848
|
|
||
(Losses) gains on investment securities, net
|
(4,359
|
)
|
|
1,364
|
|
||
Fees from covered call options
|
2,292
|
|
|
1,784
|
|
||
Trading gains (losses), net
|
(451
|
)
|
|
(171
|
)
|
||
Operating lease income, net
|
11,984
|
|
|
10,796
|
|
||
Other
|
18,244
|
|
|
16,901
|
|
||
Total non-interest income
|
113,242
|
|
|
81,657
|
|
||
Non-interest expense
|
|
|
|
||||
Salaries and employee benefits
|
136,762
|
|
|
125,723
|
|
||
Equipment
|
14,834
|
|
|
11,770
|
|
||
Operating lease equipment depreciation
|
9,260
|
|
|
8,319
|
|
||
Occupancy, net
|
17,547
|
|
|
16,245
|
|
||
Data processing
|
8,373
|
|
|
7,525
|
|
||
Advertising and marketing
|
10,862
|
|
|
9,858
|
|
||
Professional fees
|
6,721
|
|
|
5,556
|
|
||
Amortization of other intangible assets
|
2,863
|
|
|
2,942
|
|
||
FDIC insurance
|
4,135
|
|
|
3,576
|
|
||
OREO expense, net
|
(876
|
)
|
|
632
|
|
||
Other
|
24,160
|
|
|
22,228
|
|
||
Total non-interest expense
|
234,641
|
|
|
214,374
|
|
||
Income before taxes
|
87,083
|
|
|
118,645
|
|
||
Income tax expense
|
24,271
|
|
|
29,499
|
|
||
Net income
|
$
|
62,812
|
|
|
$
|
89,146
|
|
Preferred stock dividends
|
2,050
|
|
|
2,050
|
|
||
Net income applicable to common shares
|
$
|
60,762
|
|
|
$
|
87,096
|
|
Net income per common share—Basic
|
$
|
1.05
|
|
|
$
|
1.54
|
|
Net income per common share—Diluted
|
$
|
1.04
|
|
|
$
|
1.52
|
|
Cash dividends declared per common share
|
$
|
0.28
|
|
|
$
|
0.25
|
|
Weighted average common shares outstanding
|
57,620
|
|
|
56,529
|
|
||
Dilutive potential common shares
|
575
|
|
|
699
|
|
||
Average common shares and dilutive common shares
|
58,195
|
|
|
57,228
|
|
|
Three Months Ended
|
||||||
(In thousands)
|
March 31,
2020 |
|
March 31,
2019 |
||||
Net income
|
$
|
62,812
|
|
|
$
|
89,146
|
|
Unrealized gains on available-for-sale securities
|
|
|
|
||||
Before tax
|
91,354
|
|
|
38,275
|
|
||
Tax effect
|
(24,347
|
)
|
|
(10,319
|
)
|
||
Net of tax
|
67,007
|
|
|
27,956
|
|
||
Reclassification of net gains (losses) on available-for-sale securities included in net income
|
|
|
|
||||
Before tax
|
491
|
|
|
(67
|
)
|
||
Tax effect
|
(132
|
)
|
|
18
|
|
||
Net of tax
|
359
|
|
|
(49
|
)
|
||
Reclassification of amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale
|
|
|
|
||||
Before tax
|
78
|
|
|
144
|
|
||
Tax effect
|
(21
|
)
|
|
(41
|
)
|
||
Net of tax
|
57
|
|
|
103
|
|
||
Net unrealized gains on available-for-sale securities
|
66,591
|
|
|
27,902
|
|
||
Unrealized losses on derivative instruments
|
|
|
|
||||
Before tax
|
(38,693
|
)
|
|
(4,996
|
)
|
||
Tax effect
|
10,322
|
|
|
1,345
|
|
||
Net unrealized losses on derivative instruments
|
(28,371
|
)
|
|
(3,651
|
)
|
||
Foreign currency adjustment
|
|
|
|
||||
Before tax
|
(14,333
|
)
|
|
2,891
|
|
||
Tax effect
|
3,188
|
|
|
(614
|
)
|
||
Net foreign currency adjustment
|
(11,145
|
)
|
|
2,277
|
|
||
Total other comprehensive income
|
27,075
|
|
|
26,528
|
|
||
Comprehensive income
|
$
|
89,887
|
|
|
$
|
115,674
|
|
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)
|
|||||||||||||||||||||||||||
(In thousands)
|
Preferred
stock |
|
Common
stock |
|
Surplus
|
|
Treasury
stock |
|
Retained
earnings |
|
Accumulated other
comprehensive loss |
|
Total shareholders’ equity
|
||||||||||||||
Balance at January 1, 2019
|
$
|
125,000
|
|
|
$
|
56,518
|
|
|
$
|
1,557,984
|
|
|
$
|
(5,634
|
)
|
|
$
|
1,610,574
|
|
|
$
|
(76,872
|
)
|
|
$
|
3,267,570
|
|
Cumulative effect adjustment from the adoption of ASU 2017-08
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,531
|
)
|
|
—
|
|
|
(1,531
|
)
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89,146
|
|
|
—
|
|
|
89,146
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,528
|
|
|
26,528
|
|
|||||||
Cash dividends declared on common stock, $0.25 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,123
|
)
|
|
—
|
|
|
(14,123
|
)
|
|||||||
Dividends on preferred stock, $0.41 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,050
|
)
|
|
—
|
|
|
(2,050
|
)
|
|||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
3,318
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,318
|
|
|||||||
Common stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Exercise of stock options and warrants
|
—
|
|
|
79
|
|
|
2,864
|
|
|
(575
|
)
|
|
—
|
|
|
—
|
|
|
2,368
|
|
|||||||
Restricted stock awards
|
—
|
|
|
139
|
|
|
(139
|
)
|
|
(441
|
)
|
|
—
|
|
|
—
|
|
|
(441
|
)
|
|||||||
Employee stock purchase plan
|
—
|
|
|
11
|
|
|
672
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
683
|
|
|||||||
Director compensation plan
|
—
|
|
|
18
|
|
|
486
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
504
|
|
|||||||
Balance at March 31, 2019
|
$
|
125,000
|
|
|
$
|
56,765
|
|
|
$
|
1,565,185
|
|
|
$
|
(6,650
|
)
|
|
$
|
1,682,016
|
|
|
$
|
(50,344
|
)
|
|
$
|
3,371,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at January 1, 2020
|
$
|
125,000
|
|
|
$
|
57,951
|
|
|
$
|
1,650,278
|
|
|
$
|
(6,931
|
)
|
|
$
|
1,899,630
|
|
|
$
|
(34,678
|
)
|
|
$
|
3,691,250
|
|
Cumulative effect adjustment from the adoption of ASU 2016-13, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26,717
|
)
|
|
—
|
|
|
(26,717
|
)
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62,812
|
|
|
—
|
|
|
62,812
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,075
|
|
|
27,075
|
|
|||||||
Cash dividends declared on common stock, $0.28 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,117
|
)
|
|
—
|
|
|
(16,117
|
)
|
|||||||
Dividends on preferred stock, $0.41 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,050
|
)
|
|
—
|
|
|
(2,050
|
)
|
|||||||
Common stock repurchases
|
—
|
|
|
—
|
|
|
—
|
|
|
(37,116
|
)
|
|
—
|
|
|
—
|
|
|
(37,116
|
)
|
|||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
(2,819
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,819
|
)
|
|||||||
Common stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Exercise of stock options and warrants
|
—
|
|
|
95
|
|
|
3,543
|
|
|
(92
|
)
|
|
—
|
|
|
—
|
|
|
3,546
|
|
|||||||
Restricted stock awards
|
—
|
|
|
190
|
|
|
(190
|
)
|
|
(752
|
)
|
|
—
|
|
|
—
|
|
|
(752
|
)
|
|||||||
Employee stock purchase plan
|
—
|
|
|
10
|
|
|
699
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
709
|
|
|||||||
Director compensation plan
|
—
|
|
|
20
|
|
|
552
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
572
|
|
|||||||
Balance at March 31, 2020
|
$
|
125,000
|
|
|
$
|
58,266
|
|
|
$
|
1,652,063
|
|
|
$
|
(44,891
|
)
|
|
$
|
1,917,558
|
|
|
$
|
(7,603
|
)
|
|
$
|
3,700,393
|
|
|
Three Months Ended
|
||||||
(In thousands)
|
March 31,
2020 |
|
March 31,
2019 |
||||
Operating Activities:
|
|
|
|
||||
Net income
|
$
|
62,812
|
|
|
$
|
89,146
|
|
Adjustments to reconcile net income to net cash (used for) provided by operating activities
|
|
|
|
||||
Provision for credit losses
|
52,961
|
|
|
10,624
|
|
||
Depreciation, amortization and accretion, net
|
23,376
|
|
|
21,197
|
|
||
Stock-based compensation expense
|
(2,819
|
)
|
|
3,318
|
|
||
Net amortization of premium on securities
|
1,762
|
|
|
1,367
|
|
||
Accretion of discount on loans
|
(10,730
|
)
|
|
(5,162
|
)
|
||
Mortgage servicing rights fair value change, net
|
16,873
|
|
|
10,741
|
|
||
Originations and purchases of mortgage loans held-for-sale
|
(1,216,101
|
)
|
|
(678,464
|
)
|
||
Proceeds from sales of mortgage loans held-for-sale
|
961,842
|
|
|
705,785
|
|
||
Bank owned life insurance ("BOLI") loss (income)
|
1,284
|
|
|
(1,591
|
)
|
||
(Increase) decrease in trading securities, net
|
(1,189
|
)
|
|
1,133
|
|
||
Net decrease (increase) in brokerage customer receivables
|
280
|
|
|
(1,610
|
)
|
||
Gains on mortgage loans sold
|
(51,134
|
)
|
|
(18,388
|
)
|
||
Losses (gains) on investment securities, net
|
4,359
|
|
|
(1,364
|
)
|
||
Gains on sales of premises and equipment, net
|
(4
|
)
|
|
(5
|
)
|
||
Net (gains) losses on sales and fair value adjustments of other real estate owned
|
(1,001
|
)
|
|
186
|
|
||
Increase in accrued interest receivable and other assets, net
|
(214,552
|
)
|
|
(29,914
|
)
|
||
Decrease in accrued interest payable and other liabilities, net
|
(7,829
|
)
|
|
(19,314
|
)
|
||
Net Cash (Used for) Provided by Operating Activities
|
(379,810
|
)
|
|
87,685
|
|
||
Investing Activities:
|
|
|
|
||||
Proceeds from maturities and calls of available-for-sale securities
|
162,333
|
|
|
168,575
|
|
||
Proceeds from maturities and calls of held-to-maturity securities
|
393,148
|
|
|
45,173
|
|
||
Proceeds from sales of available-for-sale securities
|
491
|
|
|
263,456
|
|
||
Proceeds from sales of equity securities with readily determinable fair value
|
30
|
|
|
—
|
|
||
Proceeds from sales and capital distributions of equity securities without readily determinable fair value
|
288
|
|
|
220
|
|
||
Purchases of available-for-sale securities
|
(1,039,817
|
)
|
|
(566,376
|
)
|
||
Purchases of held-to-maturity securities
|
(124,575
|
)
|
|
(31,643
|
)
|
||
Purchases of equity securities with readily determinable fair value
|
(46
|
)
|
|
(11,505
|
)
|
||
Purchases of equity securities without readily determinable fair value
|
(893
|
)
|
|
(623
|
)
|
||
(Purchases) redemption of Federal Home Loan Bank and Federal Reserve Bank stock, net
|
(33,807
|
)
|
|
2,341
|
|
||
(Purchases) distributions from investments in partnerships, net
|
(355
|
)
|
|
363
|
|
||
Proceeds from sales of other real estate owned
|
4,793
|
|
|
2,758
|
|
||
Net decrease (increase) in interest bearing deposits with banks
|
216,944
|
|
|
(510,517
|
)
|
||
Net increase in loans
|
(1,006,031
|
)
|
|
(380,214
|
)
|
||
Purchases of premises and equipment, net
|
(21,385
|
)
|
|
(13,608
|
)
|
||
Net Cash Used for Investing Activities
|
(1,448,882
|
)
|
|
(1,031,600
|
)
|
||
Financing Activities:
|
|
|
|
||||
Increase in deposit accounts
|
1,354,778
|
|
|
710,061
|
|
||
Increase (decrease) in other borrowings, net
|
88,073
|
|
|
(24,463
|
)
|
||
Increase in Federal Home Loan Bank advances, net
|
500,000
|
|
|
149,999
|
|
||
Issuance of common shares resulting from the exercise of stock options, employee stock purchase plan and conversion of common stock warrants
|
4,919
|
|
|
4,130
|
|
||
Common stock repurchases authorized
|
(37,041
|
)
|
|
—
|
|
||
Common stock repurchases for tax withholdings related to stock-based compensation
|
(919
|
)
|
|
(1,016
|
)
|
||
Dividends paid
|
(18,167
|
)
|
|
(16,173
|
)
|
||
Net Cash Provided by Financing Activities
|
1,891,643
|
|
|
822,538
|
|
||
Net Increase (Decrease) in Cash and Cash Equivalents
|
62,951
|
|
|
(121,377
|
)
|
||
Cash and Cash Equivalents at Beginning of Period
|
286,476
|
|
|
392,200
|
|
||
Cash and Cash Equivalents at End of Period
|
$
|
349,427
|
|
|
$
|
270,823
|
|
•
|
The Company elected to not measure an allowance for credit losses on accrued interest as such accrued interest is written off in a timely manner when deemed uncollectible. Any such write-off of accrued interest will reverse previously recognized interest income.
|
•
|
The Company elected to not include accrued interest within presentation and disclosures of the carrying amount of financial assets held at amortized cost. This election is applicable to the various disclosures included within the Company's financial statements. Accrued interest related to financial assets held at amortized cost is included within accrued interest receivable and other assets within the Company's Consolidated Statements of Condition and totaled $116.4 million at March 31, 2020.
|
•
|
The Company elected to estimate expected credit losses by measuring the face amount or unpaid principal balance component of the amortized cost basis of a financial asset separately from other components such as premiums, discount and deferred fees and costs.
|
•
|
The Company elected to not maintain current accounting policies for existing purchase credit impaired ("PCI") financial assets. Upon adoption, such assets were considered PCD assets and measured accordingly under the new rules.
|
|
March 31, 2020
|
||||||||||||||
(Dollars in thousands)
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
120,404
|
|
|
$
|
1,266
|
|
|
$
|
—
|
|
|
$
|
121,670
|
|
U.S. Government agencies
|
362,969
|
|
|
5,674
|
|
|
—
|
|
|
368,643
|
|
||||
Municipal
|
143,273
|
|
|
3,571
|
|
|
(235
|
)
|
|
146,609
|
|
||||
Corporate notes:
|
|
|
|
|
|
|
|
||||||||
Financial issuers
|
111,718
|
|
|
90
|
|
|
(11,821
|
)
|
|
99,987
|
|
||||
Other
|
1,000
|
|
|
31
|
|
|
—
|
|
|
1,031
|
|
||||
Mortgage-backed: (1)
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
2,697,264
|
|
|
111,275
|
|
|
(4
|
)
|
|
2,808,535
|
|
||||
Collateralized mortgage obligations
|
24,077
|
|
|
416
|
|
|
(9
|
)
|
|
24,484
|
|
||||
Total available-for-sale securities
|
$
|
3,460,705
|
|
|
$
|
122,323
|
|
|
$
|
(12,069
|
)
|
|
$
|
3,570,959
|
|
Held-to-maturity securities
|
|
|
|
|
|
|
|
||||||||
U.S. Government agencies
|
$
|
646,976
|
|
|
$
|
5,996
|
|
|
$
|
(4
|
)
|
|
$
|
652,968
|
|
Municipal
|
218,470
|
|
|
7,909
|
|
|
(155
|
)
|
|
226,224
|
|
||||
Total held-to-maturity securities
|
$
|
865,446
|
|
|
$
|
13,905
|
|
|
$
|
(159
|
)
|
|
$
|
879,192
|
|
Less: Allowance for credit losses (2)
|
(70
|
)
|
|
|
|
|
|
|
|||||||
Held-to-maturity securities, net of allowance for credit losses
|
$
|
865,376
|
|
|
|
|
|
|
|
||||||
Equity securities with readily determinable fair value
|
$
|
48,060
|
|
|
$
|
781
|
|
|
$
|
(1,531
|
)
|
|
$
|
47,310
|
|
|
December 31, 2019
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
(Dollars in thousands)
|
|
|
|
||||||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
120,275
|
|
|
$
|
813
|
|
|
$
|
—
|
|
|
$
|
121,088
|
|
U.S. Government agencies
|
365,639
|
|
|
3,557
|
|
|
(3,754
|
)
|
|
365,442
|
|
||||
Municipal
|
141,701
|
|
|
3,785
|
|
|
(168
|
)
|
|
145,318
|
|
||||
Corporate notes:
|
|
|
|
|
|
|
|
||||||||
Financial issuers
|
97,051
|
|
|
761
|
|
|
(4,002
|
)
|
|
93,810
|
|
||||
Other
|
1,000
|
|
|
31
|
|
|
—
|
|
|
1,031
|
|
||||
Mortgage-backed: (1)
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
2,328,383
|
|
|
21,240
|
|
|
(3,013
|
)
|
|
2,346,610
|
|
||||
Collateralized mortgage obligations
|
32,775
|
|
|
280
|
|
|
(140
|
)
|
|
32,915
|
|
||||
Total available-for-sale securities
|
$
|
3,086,824
|
|
|
$
|
30,467
|
|
|
$
|
(11,077
|
)
|
|
$
|
3,106,214
|
|
Held-to-maturity securities
|
|
|
|
|
|
|
|
||||||||
U.S. Government agencies
|
$
|
902,974
|
|
|
$
|
2,159
|
|
|
$
|
(5,460
|
)
|
|
$
|
899,673
|
|
Municipal
|
231,426
|
|
|
7,536
|
|
|
(239
|
)
|
|
238,723
|
|
||||
Total held-to-maturity securities
|
$
|
1,134,400
|
|
|
$
|
9,695
|
|
|
$
|
(5,699
|
)
|
|
$
|
1,138,396
|
|
Equity securities with readily determinable fair value
|
$
|
48,044
|
|
|
$
|
3,511
|
|
|
$
|
(715
|
)
|
|
$
|
50,840
|
|
|
March 31, 2019
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
(Dollars in thousands)
|
|
|
|
||||||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
126,236
|
|
|
$
|
579
|
|
|
$
|
(97
|
)
|
|
$
|
126,718
|
|
U.S. Government agencies
|
129,258
|
|
|
1,431
|
|
|
(2
|
)
|
|
130,687
|
|
||||
Municipal
|
132,870
|
|
|
3,701
|
|
|
(218
|
)
|
|
136,353
|
|
||||
Corporate notes:
|
|
|
|
|
|
|
|
||||||||
Financial issuers
|
97,072
|
|
|
63
|
|
|
(4,802
|
)
|
|
92,333
|
|
||||
Other
|
1,000
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
||||
Mortgage-backed: (1)
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
1,677,903
|
|
|
6,041
|
|
|
(27,662
|
)
|
|
1,656,282
|
|
||||
Collateralized mortgage obligations
|
42,514
|
|
|
293
|
|
|
(398
|
)
|
|
42,409
|
|
||||
Total available-for-sale securities
|
$
|
2,206,853
|
|
|
$
|
12,108
|
|
|
$
|
(33,179
|
)
|
|
$
|
2,185,782
|
|
Held-to-maturity securities
|
|
|
|
|
|
|
|
||||||||
U.S. Government agencies
|
$
|
806,293
|
|
|
$
|
1,945
|
|
|
$
|
(14,580
|
)
|
|
$
|
793,658
|
|
Municipal
|
245,249
|
|
|
3,669
|
|
|
(881
|
)
|
|
248,037
|
|
||||
Total held-to-maturity securities
|
$
|
1,051,542
|
|
|
$
|
5,614
|
|
|
$
|
(15,461
|
)
|
|
$
|
1,041,695
|
|
Equity securities with readily determinable fair value
|
$
|
45,915
|
|
|
$
|
2,708
|
|
|
$
|
(970
|
)
|
|
$
|
47,653
|
|
(1)
|
Consisting entirely of residential mortgage-backed securities, none of which are subprime.
|
(2)
|
As of January 1, 2020, the Company adopted ASU 2016-13 related to credit losses on financial assets held at amortized cost. As a result of such adoption, the Company measured an allowance for credit losses related to lifetime expected credit losses on held-to-maturity investment securities.
|
|
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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. Government agencies
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Municipal
|
39,637
|
|
|
(207
|
)
|
|
1,006
|
|
|
(28
|
)
|
|
40,643
|
|
|
(235
|
)
|
||||||
Corporate notes:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financial issuers
|
35,154
|
|
|
(1,518
|
)
|
|
56,681
|
|
|
(10,303
|
)
|
|
91,835
|
|
|
(11,821
|
)
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Mortgage-backed:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
1,007
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
1,007
|
|
|
(4
|
)
|
||||||
Collateralized mortgage obligations
|
1,046
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
1,046
|
|
|
(9
|
)
|
||||||
Total available-for-sale securities
|
$
|
76,844
|
|
|
$
|
(1,738
|
)
|
|
$
|
57,687
|
|
|
$
|
(10,331
|
)
|
|
$
|
134,531
|
|
|
$
|
(12,069
|
)
|
|
Three months ended March 31,
|
||||||
(Dollars in thousands)
|
2020
|
|
2019
|
||||
Realized gains on investment securities
|
$
|
496
|
|
|
$
|
17
|
|
Realized losses on investment securities
|
(5
|
)
|
|
(84
|
)
|
||
Net realized gains on investment securities
|
491
|
|
|
$
|
(67
|
)
|
|
Unrealized gains on equity securities with readily determinable fair value
|
—
|
|
|
1,431
|
|
||
Unrealized losses on equity securities with readily determinable fair value
|
(3,546
|
)
|
|
—
|
|
||
Net unrealized (losses) gains on equity securities with readily determinable fair value
|
(3,546
|
)
|
|
1,431
|
|
||
Upward adjustments of equity securities without readily determinable fair values
|
393
|
|
|
—
|
|
||
Downward adjustments of equity securities without readily determinable fair values
|
—
|
|
|
—
|
|
||
Impairment of equity securities without readily determinable fair values
|
(1,697
|
)
|
|
—
|
|
||
Adjustment and impairment, net, of equity securities without readily determinable fair values
|
(1,304
|
)
|
|
—
|
|
||
Other than temporary impairment charges (1)
|
—
|
|
|
—
|
|
||
(Losses) gains on investment securities, net
|
$
|
(4,359
|
)
|
|
$
|
1,364
|
|
Proceeds from sales of available-for-sale securities(2)
|
$
|
491
|
|
|
$
|
263,456
|
|
Proceeds from sales of equity securities with readily determinable fair value
|
30
|
|
|
—
|
|
||
Proceeds from sales and capital distributions of equity securities without readily determinable fair value
|
288
|
|
|
220
|
|
(1)
|
Applicable to periods prior to the adoption of ASU 2016-13.
|
(2)
|
Includes proceeds from available-for-sale securities sold in accordance with written covered call options sold to a third party.
|
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2019
|
||||||||||||||||||
(Dollars in thousands)
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Due in one year or less
|
$
|
186,538
|
|
|
$
|
187,789
|
|
|
$
|
183,996
|
|
|
$
|
185,035
|
|
|
$
|
68,996
|
|
|
$
|
69,060
|
|
Due in one to five years
|
70,812
|
|
|
71,825
|
|
|
62,679
|
|
|
64,064
|
|
|
171,058
|
|
|
172,673
|
|
||||||
Due in five to ten years
|
174,262
|
|
|
164,479
|
|
|
186,683
|
|
|
184,666
|
|
|
116,901
|
|
|
113,825
|
|
||||||
Due after ten years
|
307,752
|
|
|
313,847
|
|
|
292,308
|
|
|
292,924
|
|
|
129,481
|
|
|
131,533
|
|
||||||
Mortgage-backed
|
2,721,341
|
|
|
2,833,019
|
|
|
2,361,158
|
|
|
2,379,525
|
|
|
1,720,417
|
|
|
1,698,691
|
|
||||||
Total available-for-sale securities
|
$
|
3,460,705
|
|
|
$
|
3,570,959
|
|
|
$
|
3,086,824
|
|
|
$
|
3,106,214
|
|
|
$
|
2,206,853
|
|
|
$
|
2,185,782
|
|
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Due in one year or less
|
$
|
5,310
|
|
|
$
|
5,333
|
|
|
$
|
6,061
|
|
|
$
|
6,074
|
|
|
$
|
9,134
|
|
|
$
|
9,112
|
|
Due in one to five years
|
23,801
|
|
|
24,158
|
|
|
28,697
|
|
|
28,986
|
|
|
27,477
|
|
|
27,539
|
|
||||||
Due in five to ten years
|
143,783
|
|
|
148,746
|
|
|
213,104
|
|
|
216,957
|
|
|
301,971
|
|
|
302,066
|
|
||||||
Due after ten years
|
692,552
|
|
|
700,955
|
|
|
886,538
|
|
|
886,379
|
|
|
712,960
|
|
|
702,978
|
|
||||||
Total held-to-maturity securities
|
$
|
865,446
|
|
|
$
|
879,192
|
|
|
$
|
1,134,400
|
|
|
$
|
1,138,396
|
|
|
$
|
1,051,542
|
|
|
$
|
1,041,695
|
|
Less: Allowance for credit losses(1)
|
(70
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Held-to-maturity securities, net of allowance for credit losses
|
$
|
865,376
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
As of January 1, 2020, the Company adopted ASU 2016-13 related to credit losses on financial assets held at amortized cost. As a result of such adoption, the Company measured an allowance for credit losses in the three months ended March 31, 2020 related to lifetime expected credit losses on held-to-maturity investment securities.
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
(Dollars in thousands)
|
2020
|
|
2019
|
|
2019
|
||||||
Balance:
|
|
|
|
|
|
||||||
Commercial
|
$
|
9,025,886
|
|
|
$
|
8,285,920
|
|
|
$
|
7,994,191
|
|
Commercial real estate
|
8,185,531
|
|
|
8,020,276
|
|
|
6,973,505
|
|
|||
Home equity
|
494,655
|
|
|
513,066
|
|
|
528,448
|
|
|||
Residential real estate
|
1,377,389
|
|
|
1,354,221
|
|
|
1,053,524
|
|
|||
Premium finance receivables
|
|
|
|
|
|
||||||
Commercial insurance
|
3,465,055
|
|
|
3,442,027
|
|
|
2,988,788
|
|
|||
Life insurance
|
5,221,639
|
|
|
5,074,602
|
|
|
4,555,369
|
|
|||
Consumer and other
|
37,166
|
|
|
110,178
|
|
|
120,804
|
|
|||
Total loans, net of unearned income
|
$
|
27,807,321
|
|
|
$
|
26,800,290
|
|
|
$
|
24,214,629
|
|
Mix:
|
|
|
|
|
|
||||||
Commercial
|
32
|
%
|
|
31
|
%
|
|
33
|
%
|
|||
Commercial real estate
|
29
|
|
|
30
|
|
|
29
|
|
|||
Home equity
|
2
|
|
|
2
|
|
|
2
|
|
|||
Residential real estate
|
5
|
|
|
5
|
|
|
4
|
|
|||
Premium finance receivables
|
|
|
|
|
|
||||||
Commercial insurance
|
13
|
|
|
13
|
|
|
12
|
|
|||
Life insurance
|
19
|
|
|
19
|
|
|
19
|
|
|||
Consumer and other
|
0
|
|
|
0
|
|
|
1
|
|
|||
Total loans, net of unearned income
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
December 31, 2019
|
|||||||
(In thousands)
|
Unpaid
Principal Balance |
|
Carrying
Value |
|||||
PCI loans
|
$
|
455,784
|
|
|
$
|
425,372
|
|
|
|
Three Months Ended
|
||
(In thousands)
|
|
March 31,
2019 |
||
Accretable yield, beginning balance
|
|
$
|
34,876
|
|
Accretable yield amortized to interest income
|
|
(3,829
|
)
|
|
Reclassification from non-accretable difference (1)
|
|
1,574
|
|
|
Increases in interest cash flows due to payments and changes in interest rates
|
|
1,471
|
|
|
Accretable yield, ending balance
|
|
$
|
34,092
|
|
(1)
|
Reclassification is the result of subsequent increases in expected principal cash flows.
|
As of March 31, 2020
|
|
|
90+ days and still accruing
|
|
60-89 days past due
|
|
30-59 days past due
|
|
|
|
|
||||||||||||
(In thousands)
|
Nonaccrual
|
|
|
|
|
Current
|
|
Total Loans
|
|||||||||||||||
Loan Balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial, industrial and other
|
$
|
49,916
|
|
|
$
|
1,241
|
|
|
$
|
8,873
|
|
|
$
|
86,129
|
|
|
$
|
8,879,727
|
|
|
$
|
9,025,886
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and development
|
7,422
|
|
|
147
|
|
|
1,859
|
|
|
16,938
|
|
|
1,274,987
|
|
|
1,301,353
|
|
||||||
Non-construction
|
55,408
|
|
|
369
|
|
|
8,353
|
|
|
58,130
|
|
|
6,761,918
|
|
|
6,884,178
|
|
||||||
Home equity
|
7,243
|
|
|
—
|
|
|
214
|
|
|
2,096
|
|
|
485,102
|
|
|
494,655
|
|
||||||
Residential real estate
|
18,965
|
|
|
605
|
|
|
345
|
|
|
28,983
|
|
|
1,328,491
|
|
|
1,377,389
|
|
||||||
Premium finance receivables
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial insurance loans
|
21,058
|
|
|
16,505
|
|
|
10,327
|
|
|
32,811
|
|
|
3,384,354
|
|
|
3,465,055
|
|
||||||
Life insurance loans
|
—
|
|
|
—
|
|
|
2,403
|
|
|
37,374
|
|
|
5,181,862
|
|
|
5,221,639
|
|
||||||
Consumer and other
|
403
|
|
|
78
|
|
|
625
|
|
|
207
|
|
|
35,853
|
|
|
37,166
|
|
||||||
Total loans, net of unearned income
|
$
|
160,415
|
|
|
$
|
18,945
|
|
|
$
|
32,999
|
|
|
$
|
262,668
|
|
|
$
|
27,332,294
|
|
|
$
|
27,807,321
|
|
As of December 31, 2019
|
|
|
90+ days and still accruing
|
|
60-89 days past due
|
|
30-59 days past due
|
|
|
|
|
||||||||||||
(In thousands)
|
Nonaccrual
|
|
|
|
|
Current
|
|
Total Loans
|
|||||||||||||||
Loan Balances:(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial, industrial and other
|
$
|
37,224
|
|
|
$
|
1,855
|
|
|
$
|
3,275
|
|
|
$
|
77,324
|
|
|
$
|
8,166,242
|
|
|
$
|
8,285,920
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and development
|
2,112
|
|
|
3,514
|
|
|
5,292
|
|
|
48,964
|
|
|
1,223,567
|
|
|
1,283,449
|
|
||||||
Non-construction
|
24,001
|
|
|
11,432
|
|
|
26,254
|
|
|
48,603
|
|
|
6,626,537
|
|
|
6,736,827
|
|
||||||
Home equity
|
7,363
|
|
|
—
|
|
|
454
|
|
|
3,533
|
|
|
501,716
|
|
|
513,066
|
|
||||||
Residential real estate
|
13,797
|
|
|
5,771
|
|
|
3,089
|
|
|
18,041
|
|
|
1,313,523
|
|
|
1,354,221
|
|
||||||
Premium finance receivables
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial insurance loans
|
20,590
|
|
|
11,517
|
|
|
12,119
|
|
|
18,783
|
|
|
3,379,018
|
|
|
3,442,027
|
|
||||||
Life insurance loans
|
590
|
|
|
—
|
|
|
—
|
|
|
32,559
|
|
|
5,041,453
|
|
|
5,074,602
|
|
||||||
Consumer and other
|
231
|
|
|
287
|
|
|
40
|
|
|
344
|
|
|
109,276
|
|
|
110,178
|
|
||||||
Total loans, net of unearned income
|
$
|
105,908
|
|
|
$
|
34,376
|
|
|
$
|
50,523
|
|
|
$
|
248,151
|
|
|
$
|
26,361,332
|
|
|
$
|
26,800,290
|
|
As of March 31, 2019
|
|
|
90+ days and still accruing
|
|
60-89 days past due
|
|
30-59 days past due
|
|
|
|
|
||||||||||||
(In thousands)
|
Nonaccrual
|
|
|
|
|
Current
|
|
Total Loans
|
|||||||||||||||
Loan Balances:(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial, industrial and other
|
$
|
55,792
|
|
|
$
|
2,499
|
|
|
$
|
1,787
|
|
|
$
|
49,700
|
|
|
$
|
7,884,413
|
|
|
$
|
7,994,191
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and development
|
1,084
|
|
|
621
|
|
|
496
|
|
|
7,879
|
|
|
946,614
|
|
|
956,694
|
|
||||||
Non-construction
|
14,849
|
|
|
3,644
|
|
|
5,116
|
|
|
46,993
|
|
|
5,946,209
|
|
|
6,016,811
|
|
||||||
Home equity
|
7,885
|
|
|
—
|
|
|
810
|
|
|
4,315
|
|
|
515,438
|
|
|
528,448
|
|
||||||
Residential real estate
|
15,879
|
|
|
1,481
|
|
|
509
|
|
|
11,112
|
|
|
1,024,543
|
|
|
1,053,524
|
|
||||||
Premium finance receivables
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial insurance loans
|
14,797
|
|
|
6,558
|
|
|
5,628
|
|
|
20,767
|
|
|
2,941,038
|
|
|
2,988,788
|
|
||||||
Life insurance loans
|
—
|
|
|
168
|
|
|
4,788
|
|
|
35,046
|
|
|
4,515,367
|
|
|
4,555,369
|
|
||||||
Consumer and other
|
326
|
|
|
280
|
|
|
47
|
|
|
350
|
|
|
119,801
|
|
|
120,804
|
|
||||||
Total loans, net of unearned income
|
$
|
110,612
|
|
|
$
|
15,251
|
|
|
$
|
19,181
|
|
|
$
|
176,162
|
|
|
$
|
23,893,423
|
|
|
$
|
24,214,629
|
|
(1)
|
Includes PCD loans and, for periods prior to the adoption of ASU 2016-13, PCI loans. PCI loans represented loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings disclosed in comparative periods are based upon contractually required payments. As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified PCI loans to PCD loans effective January 1, 2020.
|
As of March 31, 2020
|
Year of Origination
|
|
|
Revolving
|
|
Total
|
|||||||||||||||||||||||
(In thousands)
|
2020
|
2019
|
2018
|
2017
|
2016
|
Prior
|
|
Revolving
|
to Term
|
|
Loans
|
||||||||||||||||||
Loan Balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial, industrial and other
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
$
|
618,352
|
|
$
|
1,562,959
|
|
$
|
1,203,626
|
|
$
|
798,697
|
|
$
|
488,105
|
|
$
|
601,508
|
|
|
$
|
3,145,103
|
|
$
|
11,952
|
|
|
$
|
8,430,302
|
|
Special mention
|
22,183
|
|
37,476
|
|
55,148
|
|
30,076
|
|
6,700
|
|
27,144
|
|
|
121,137
|
|
433
|
|
|
300,297
|
|
|||||||||
Substandard accrual
|
4,548
|
|
37,744
|
|
46,576
|
|
46,417
|
|
5,332
|
|
29,650
|
|
|
74,665
|
|
439
|
|
|
245,371
|
|
|||||||||
Substandard nonaccrual/doubtful
|
432
|
|
3,752
|
|
16,200
|
|
6,416
|
|
6,941
|
|
11,626
|
|
|
4,260
|
|
289
|
|
|
49,916
|
|
|||||||||
Total commercial, industrial and other
|
$
|
645,515
|
|
$
|
1,641,931
|
|
$
|
1,321,550
|
|
$
|
881,606
|
|
$
|
507,078
|
|
$
|
669,928
|
|
|
$
|
3,345,165
|
|
$
|
13,113
|
|
|
$
|
9,025,886
|
|
Construction and development
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
$
|
63,190
|
|
$
|
403,322
|
|
$
|
330,219
|
|
$
|
212,686
|
|
$
|
89,499
|
|
$
|
76,101
|
|
|
$
|
11,972
|
|
$
|
—
|
|
|
$
|
1,186,989
|
|
Special mention
|
—
|
|
16,294
|
|
55,734
|
|
10,590
|
|
—
|
|
5,975
|
|
|
—
|
|
—
|
|
|
88,593
|
|
|||||||||
Substandard accrual
|
—
|
|
3,076
|
|
6,467
|
|
1,561
|
|
4,022
|
|
3,223
|
|
|
—
|
|
—
|
|
|
18,349
|
|
|||||||||
Substandard nonaccrual/doubtful
|
—
|
|
—
|
|
321
|
|
3,091
|
|
1,072
|
|
2,938
|
|
|
—
|
|
—
|
|
|
7,422
|
|
|||||||||
Total construction and development
|
$
|
63,190
|
|
$
|
422,692
|
|
$
|
392,741
|
|
$
|
227,928
|
|
$
|
94,593
|
|
$
|
88,237
|
|
|
$
|
11,972
|
|
$
|
—
|
|
|
$
|
1,301,353
|
|
Non-construction
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
$
|
366,096
|
|
$
|
1,164,916
|
|
$
|
1,045,948
|
|
$
|
905,495
|
|
$
|
813,990
|
|
$
|
2,078,191
|
|
|
$
|
171,039
|
|
$
|
6,111
|
|
|
$
|
6,551,786
|
|
Special mention
|
—
|
|
23,738
|
|
27,198
|
|
33,401
|
|
31,072
|
|
71,686
|
|
|
8,494
|
|
121
|
|
|
195,710
|
|
|||||||||
Substandard accrual
|
—
|
|
6,414
|
|
1,531
|
|
1,195
|
|
14,099
|
|
57,848
|
|
|
187
|
|
—
|
|
|
81,274
|
|
|||||||||
Substandard nonaccrual/doubtful
|
—
|
|
1,130
|
|
2,488
|
|
3,016
|
|
10,955
|
|
37,819
|
|
|
—
|
|
—
|
|
|
55,408
|
|
|||||||||
Total non-construction
|
$
|
366,096
|
|
$
|
1,196,198
|
|
$
|
1,077,165
|
|
$
|
943,107
|
|
$
|
870,116
|
|
$
|
2,245,544
|
|
|
$
|
179,720
|
|
$
|
6,232
|
|
|
$
|
6,884,178
|
|
Home equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
$
|
—
|
|
$
|
521
|
|
$
|
1,722
|
|
$
|
1,072
|
|
$
|
727
|
|
$
|
9,306
|
|
|
$
|
444,235
|
|
$
|
—
|
|
|
$
|
457,583
|
|
Special mention
|
—
|
|
89
|
|
248
|
|
970
|
|
—
|
|
5,313
|
|
|
7,359
|
|
571
|
|
|
14,550
|
|
|||||||||
Substandard accrual
|
—
|
|
—
|
|
136
|
|
—
|
|
322
|
|
11,765
|
|
|
2,866
|
|
190
|
|
|
15,279
|
|
|||||||||
Substandard nonaccrual/doubtful
|
—
|
|
57
|
|
200
|
|
29
|
|
247
|
|
5,163
|
|
|
1,547
|
|
—
|
|
|
7,243
|
|
|||||||||
Total home equity
|
$
|
—
|
|
$
|
667
|
|
$
|
2,306
|
|
$
|
2,071
|
|
$
|
1,296
|
|
$
|
31,547
|
|
|
$
|
456,007
|
|
$
|
761
|
|
|
$
|
494,655
|
|
Residential real estate
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
$
|
62,874
|
|
$
|
445,862
|
|
$
|
185,226
|
|
$
|
181,659
|
|
$
|
146,159
|
|
$
|
298,502
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
1,320,282
|
|
Special mention
|
—
|
|
1,432
|
|
2,815
|
|
3,950
|
|
3,094
|
|
10,665
|
|
|
—
|
|
—
|
|
|
21,956
|
|
|||||||||
Substandard accrual
|
—
|
|
495
|
|
919
|
|
2,980
|
|
5,830
|
|
5,962
|
|
|
—
|
|
—
|
|
|
16,186
|
|
|||||||||
Substandard nonaccrual/doubtful
|
—
|
|
212
|
|
615
|
|
3,102
|
|
2,255
|
|
12,781
|
|
|
—
|
|
—
|
|
|
18,965
|
|
|||||||||
Total residential real estate
|
$
|
62,874
|
|
$
|
448,001
|
|
$
|
189,575
|
|
$
|
191,691
|
|
$
|
157,338
|
|
$
|
327,910
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
1,377,389
|
|
Premium finance receivables - commercial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
$
|
1,754,440
|
|
$
|
1,668,244
|
|
$
|
12,149
|
|
$
|
1,282
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
3,436,115
|
|
Special mention
|
6
|
|
2,027
|
|
11
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
2,044
|
|
|||||||||
Substandard accrual
|
62
|
|
5,515
|
|
261
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
5,838
|
|
|||||||||
Substandard nonaccrual/doubtful
|
98
|
|
18,137
|
|
2,812
|
|
11
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
21,058
|
|
|||||||||
Total premium finance receivables - commercial
|
$
|
1,754,606
|
|
$
|
1,693,923
|
|
$
|
15,233
|
|
$
|
1,293
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
3,465,055
|
|
Premium finance receivables - life
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
$
|
107,266
|
|
$
|
475,143
|
|
$
|
550,086
|
|
$
|
569,225
|
|
$
|
761,057
|
|
$
|
2,758,272
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
5,221,049
|
|
Special mention
|
—
|
|
—
|
|
—
|
|
590
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
590
|
|
|||||||||
Substandard accrual
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|||||||||
Substandard nonaccrual/doubtful
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|||||||||
Total premium finance receivables - life
|
$
|
107,266
|
|
$
|
475,143
|
|
$
|
550,086
|
|
$
|
569,815
|
|
$
|
761,057
|
|
$
|
2,758,272
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
5,221,639
|
|
Consumer and other
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
$
|
1,129
|
|
$
|
4,189
|
|
$
|
2,515
|
|
$
|
908
|
|
$
|
691
|
|
$
|
7,136
|
|
|
$
|
19,297
|
|
$
|
—
|
|
|
$
|
35,865
|
|
Special mention
|
—
|
|
33
|
|
3
|
|
131
|
|
1
|
|
454
|
|
|
2
|
|
—
|
|
|
624
|
|
|||||||||
Substandard accrual
|
—
|
|
22
|
|
2
|
|
—
|
|
—
|
|
246
|
|
|
4
|
|
—
|
|
|
274
|
|
|||||||||
Substandard nonaccrual/doubtful
|
—
|
|
—
|
|
4
|
|
—
|
|
—
|
|
399
|
|
|
—
|
|
—
|
|
|
403
|
|
|||||||||
Total consumer and other
|
$
|
1,129
|
|
$
|
4,244
|
|
$
|
2,524
|
|
$
|
1,039
|
|
$
|
692
|
|
$
|
8,235
|
|
|
$
|
19,303
|
|
$
|
—
|
|
|
$
|
37,166
|
|
As of March 31, 2020
|
Year of Origination
|
|
Total
|
|||||||||||||||||||
(In thousands)
|
2020
|
2019
|
2018
|
2017
|
2016
|
Prior
|
|
Balance
|
||||||||||||||
Amortized Cost Balances:
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. government agencies
|
|
|
|
|
|
|
|
|
||||||||||||||
1-4 internal grade
|
$
|
124,575
|
|
$
|
397,534
|
|
$
|
101,450
|
|
$
|
—
|
|
$
|
20,000
|
|
$
|
3,417
|
|
|
$
|
646,976
|
|
5-7 internal grade
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
8-10 internal grade
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
Total U.S. government agencies
|
$
|
124,575
|
|
$
|
397,534
|
|
$
|
101,450
|
|
$
|
—
|
|
$
|
20,000
|
|
$
|
3,417
|
|
|
$
|
646,976
|
|
Municipal
|
|
|
|
|
|
|
|
|
||||||||||||||
1-4 internal grade
|
$
|
—
|
|
$
|
162
|
|
$
|
7,631
|
|
$
|
44,101
|
|
$
|
10,218
|
|
$
|
156,358
|
|
|
$
|
218,470
|
|
5-7 internal grade
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
8-10 internal grade
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
Total municipal
|
$
|
—
|
|
$
|
162
|
|
$
|
7,631
|
|
$
|
44,101
|
|
$
|
10,218
|
|
$
|
156,358
|
|
|
$
|
218,470
|
|
Total held-to-maturity securities
|
|
|
|
|
|
|
|
$
|
865,446
|
|
||||||||||||
Less: Allowance for credit losses
|
|
|
|
|
|
|
|
(70
|
)
|
|||||||||||||
Held-to-maturity securities, net of allowance for credit losses
|
|
|
|
|
|
|
|
$
|
865,376
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
(In thousands)
|
|
2020
|
|
2019
|
|
2019
|
||||||
Allowance for loan losses
|
|
$
|
216,050
|
|
|
$
|
156,828
|
|
|
$
|
158,212
|
|
Allowance for unfunded lending-related commitments losses
|
|
37,362
|
|
|
1,633
|
|
|
1,410
|
|
|||
Allowance for held-to-maturity securities losses
|
|
70
|
|
|
—
|
|
|
—
|
|
|||
Allowance for credit losses
|
|
$
|
253,482
|
|
|
$
|
158,461
|
|
|
$
|
159,622
|
|
Three months ended March 31, 2020
|
|
|
Commercial Real Estate
|
|
Home Equity
|
|
Residential Real Estate
|
|
Premium Finance Receivables
|
|
Consumer and Other
|
|
Total Loans
|
||||||||||||||
(In thousands)
|
Commercial
|
|
|
|
|
|
|
||||||||||||||||||||
Allowance for credit losses at beginning of period
|
$
|
64,920
|
|
|
$
|
68,511
|
|
|
$
|
3,878
|
|
|
$
|
9,800
|
|
|
$
|
9,647
|
|
|
$
|
1,705
|
|
|
$
|
158,461
|
|
Cumulative effect adjustment from the adoption of ASU 2016-13
|
9,039
|
|
|
32,064
|
|
|
9,061
|
|
|
3,002
|
|
|
(4,959
|
)
|
|
(863
|
)
|
|
47,344
|
|
|||||||
Other adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(73
|
)
|
|
—
|
|
|
(73
|
)
|
|||||||
Charge-offs
|
(2,153
|
)
|
|
(570
|
)
|
|
(1,001
|
)
|
|
(401
|
)
|
|
(3,184
|
)
|
|
(128
|
)
|
|
(7,437
|
)
|
|||||||
Recoveries
|
384
|
|
|
263
|
|
|
294
|
|
|
60
|
|
|
1,110
|
|
|
41
|
|
|
2,152
|
|
|||||||
Provision for credit losses
|
35,156
|
|
|
12,528
|
|
|
162
|
|
|
89
|
|
|
5,339
|
|
|
(309
|
)
|
|
52,965
|
|
|||||||
Allowance for credit losses at period end
|
$
|
107,346
|
|
|
$
|
112,796
|
|
|
$
|
12,394
|
|
|
$
|
12,550
|
|
|
$
|
7,880
|
|
|
$
|
446
|
|
|
$
|
253,412
|
|
Individually measured
|
$
|
12,524
|
|
|
$
|
9,108
|
|
|
$
|
290
|
|
|
$
|
466
|
|
|
$
|
—
|
|
|
$
|
104
|
|
|
$
|
22,492
|
|
Collectively measured
|
94,822
|
|
|
103,688
|
|
|
12,104
|
|
|
12,084
|
|
|
7,880
|
|
|
342
|
|
|
230,920
|
|
|||||||
Loans at period end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually measured
|
$
|
56,416
|
|
|
$
|
80,873
|
|
|
$
|
23,060
|
|
|
$
|
27,854
|
|
|
$
|
—
|
|
|
$
|
537
|
|
|
$
|
188,740
|
|
Collectively measured
|
8,969,470
|
|
|
8,104,658
|
|
|
471,595
|
|
|
1,207,268
|
|
|
8,686,694
|
|
|
36,629
|
|
|
27,476,314
|
|
|||||||
Loans held at fair value
|
—
|
|
|
—
|
|
|
—
|
|
|
142,267
|
|
|
—
|
|
|
—
|
|
|
142,267
|
|
Three months ended March 31, 2019
|
Commercial
|
|
Commercial Real Estate
|
|
Home Equity
|
|
Residential Real Estate
|
|
Premium Finance Receivables
|
|
Consumer and Other
|
|
Total Loans
|
||||||||||||||
(In thousands)
|
|
|
|
|
|
|
|||||||||||||||||||||
Allowance for credit losses at beginning of period
|
$
|
67,826
|
|
|
$
|
61,661
|
|
|
$
|
8,507
|
|
|
$
|
7,194
|
|
|
$
|
7,715
|
|
|
$
|
1,261
|
|
|
$
|
154,164
|
|
Other adjustments
|
—
|
|
|
(24
|
)
|
|
(7
|
)
|
|
(7
|
)
|
|
11
|
|
|
—
|
|
|
(27
|
)
|
|||||||
Charge-offs
|
(503
|
)
|
|
(3,734
|
)
|
|
(88
|
)
|
|
(3
|
)
|
|
(2,210
|
)
|
|
(102
|
)
|
|
(6,640
|
)
|
|||||||
Recoveries
|
318
|
|
|
480
|
|
|
62
|
|
|
29
|
|
|
556
|
|
|
56
|
|
|
1,501
|
|
|||||||
Provision for credit losses
|
6,997
|
|
|
877
|
|
|
153
|
|
|
417
|
|
|
2,147
|
|
|
33
|
|
|
10,624
|
|
|||||||
Allowance for credit losses at period end
|
$
|
74,638
|
|
|
$
|
59,260
|
|
|
$
|
8,627
|
|
|
$
|
7,630
|
|
|
$
|
8,219
|
|
|
$
|
1,248
|
|
|
$
|
159,622
|
|
Individually measured
|
$
|
11,858
|
|
|
$
|
517
|
|
|
$
|
796
|
|
|
$
|
302
|
|
|
$
|
—
|
|
|
$
|
133
|
|
|
$
|
13,606
|
|
Collectively measured
|
62,317
|
|
|
58,623
|
|
|
7,831
|
|
|
7,267
|
|
|
8,219
|
|
|
1,115
|
|
|
145,372
|
|
|||||||
Loans acquired with deteriorated credit quality (1)
|
463
|
|
|
120
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
—
|
|
|
644
|
|
|||||||
Loans at period end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually measured
|
$
|
75,442
|
|
|
$
|
30,300
|
|
|
$
|
15,779
|
|
|
$
|
22,464
|
|
|
$
|
—
|
|
|
$
|
376
|
|
|
$
|
144,361
|
|
Collectively measured
|
7,893,419
|
|
|
6,832,544
|
|
|
512,669
|
|
|
921,204
|
|
|
7,378,387
|
|
|
117,753
|
|
|
23,655,976
|
|
|||||||
Loans acquired with deteriorated credit quality (1)
|
25,330
|
|
|
110,661
|
|
|
—
|
|
|
8,785
|
|
|
165,770
|
|
|
2,675
|
|
|
313,221
|
|
|||||||
Loans held at fair value
|
—
|
|
|
—
|
|
|
—
|
|
|
101,071
|
|
|
—
|
|
|
—
|
|
|
101,071
|
|
(1)
|
Prior to January 1, 2020, measurement of any allowance for loan losses on PCI loans were offset by the remaining discount related to the acquired pool. As a result of the adoption of ASU 2016-13, PCI loans transitioned to a classification of PCD. Measurement of any allowance for loan losses on PCD loans is no longer offset by the remaining discount.
|
Three months ended March 31, 2020
(Dollars in thousands)
|
|
Total (1)(2)
|
|
Extension at
Below Market
Terms (2) |
|
Reduction of Interest
Rate (2)
|
|
Modification to
Interest-only
Payments (2)
|
|
Forgiveness of Debt(2)
|
|||||||||||||||||||||||||
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial, industrial and other
|
|
5
|
|
|
$
|
5,602
|
|
|
3
|
|
|
$
|
4,316
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
432
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Non-construction
|
|
13
|
|
|
16,053
|
|
|
11
|
|
|
13,511
|
|
|
3
|
|
|
921
|
|
|
5
|
|
|
3,463
|
|
|
—
|
|
|
—
|
|
|||||
Residential real estate and other
|
|
20
|
|
|
2,142
|
|
|
12
|
|
|
1,890
|
|
|
5
|
|
|
786
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total loans
|
|
38
|
|
|
$
|
23,797
|
|
|
26
|
|
|
$
|
19,717
|
|
|
8
|
|
|
$
|
1,707
|
|
|
5
|
|
|
$
|
3,463
|
|
|
1
|
|
|
$
|
432
|
|
Three months ended
March 31, 2019
(Dollars in thousands)
|
|
Total (1)(2)
|
|
Extension at
Below Market
Terms (2)
|
|
Reduction of Interest
Rate (2)
|
|
Modification to
Interest-only
Payments (2)
|
|
Forgiveness of Debt(2)
|
|||||||||||||||||||||||||
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial, industrial and other
|
|
9
|
|
|
$
|
18,930
|
|
|
2
|
|
|
$
|
508
|
|
|
—
|
|
|
$
|
—
|
|
|
7
|
|
|
$
|
18,422
|
|
|
—
|
|
|
$
|
—
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Non-construction
|
|
1
|
|
|
302
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
302
|
|
|
—
|
|
|
—
|
|
|||||
Residential real estate and other
|
|
20
|
|
|
4,486
|
|
|
20
|
|
|
4,486
|
|
|
6
|
|
|
1,547
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total loans
|
|
30
|
|
|
$
|
23,718
|
|
|
22
|
|
|
$
|
4,994
|
|
|
6
|
|
|
$
|
1,547
|
|
|
8
|
|
|
$
|
18,724
|
|
|
—
|
|
|
$
|
—
|
|
(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.
|
(Dollars in thousands)
|
As of March 31, 2020
|
|
Three Months Ended March 3,1 2020
|
|
As of March 31, 2019
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||||
Total (1)(3)
|
|
Payments in Default (2)(3)
|
|
Total (1)(3)
|
|
Payments in Default (2)(3)
|
|||||||||||||||||||||
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|
Count
|
|
Balance
|
|||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial, industrial and other
|
20
|
|
|
$
|
13,013
|
|
|
8
|
|
|
$
|
4,836
|
|
|
17
|
|
|
$
|
37,801
|
|
|
3
|
|
|
$
|
283
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-construction
|
19
|
|
|
22,770
|
|
|
3
|
|
|
758
|
|
|
3
|
|
|
757
|
|
|
3
|
|
|
757
|
|
||||
Residential real estate and other
|
145
|
|
|
17,863
|
|
|
11
|
|
|
2,510
|
|
|
74
|
|
|
13,411
|
|
|
9
|
|
|
1,759
|
|
||||
Total loans
|
184
|
|
|
$
|
53,646
|
|
|
22
|
|
|
$
|
8,104
|
|
|
94
|
|
|
$
|
51,969
|
|
|
15
|
|
|
$
|
2,799
|
|
(1)
|
Total TDRs represent all loans restructured in TDRs during the previous twelve months from the date 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.
|
(Dollars in thousands)
|
December 31,
2019
|
|
Goodwill
Acquired
|
|
Impairment
Loss
|
|
Goodwill Adjustments
|
|
March 31,
2020 |
||||||||||
Community banking
|
$
|
536,396
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
536,396
|
|
Specialty finance
|
39,451
|
|
|
—
|
|
|
—
|
|
|
(1,779
|
)
|
|
37,672
|
|
|||||
Wealth management
|
69,373
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
69,373
|
|
|||||
Total
|
$
|
645,220
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,779
|
)
|
|
$
|
643,441
|
|
(Dollars in thousands)
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
Community banking segment:
|
|
|
|
|
|
||||||
Core deposit intangibles with finite lives:
|
|
|
|
|
|
||||||
Gross carrying amount
|
$
|
55,206
|
|
|
$
|
55,206
|
|
|
$
|
55,447
|
|
Accumulated amortization
|
(28,024
|
)
|
|
(26,326
|
)
|
|
(31,022
|
)
|
|||
Net carrying amount
|
$
|
27,182
|
|
|
$
|
28,880
|
|
|
$
|
24,425
|
|
Trademark with indefinite lives:
|
|
|
|
|
|
||||||
Carrying amount
|
5,800
|
|
|
5,800
|
|
|
5,800
|
|
|||
Total net carrying amount
|
$
|
32,982
|
|
|
$
|
34,680
|
|
|
$
|
30,225
|
|
Specialty finance segment:
|
|
|
|
|
|
||||||
Customer list intangibles with finite lives:
|
|
|
|
|
|
||||||
Gross carrying amount
|
$
|
1,956
|
|
|
$
|
1,965
|
|
|
$
|
1,961
|
|
Accumulated amortization
|
(1,574
|
)
|
|
(1,552
|
)
|
|
(1,468
|
)
|
|||
Net carrying amount
|
$
|
382
|
|
|
$
|
413
|
|
|
$
|
493
|
|
Wealth management segment:
|
|
|
|
|
|
||||||
Customer list and other intangibles with finite lives:
|
|
|
|
|
|
||||||
Gross carrying amount
|
$
|
20,430
|
|
|
$
|
20,430
|
|
|
$
|
20,430
|
|
Accumulated amortization
|
(9,609
|
)
|
|
(8,466
|
)
|
|
(4,582
|
)
|
|||
Net carrying amount
|
$
|
10,821
|
|
|
$
|
11,964
|
|
|
$
|
15,848
|
|
Total intangible assets:
|
|
|
|
|
|
||||||
Gross carrying amount
|
$
|
83,392
|
|
|
$
|
83,401
|
|
|
$
|
83,638
|
|
Accumulated amortization
|
(39,207
|
)
|
|
(36,344
|
)
|
|
(37,072
|
)
|
|||
Total intangible assets, net
|
$
|
44,185
|
|
|
$
|
47,057
|
|
|
$
|
46,566
|
|
Estimated amortization
|
|
||
Actual in 3 months ended March 31, 2020
|
$
|
2,863
|
|
Estimated remaining in 2020
|
8,155
|
|
|
Estimated—2021
|
7,692
|
|
|
Estimated—2022
|
6,135
|
|
|
Estimated—2023
|
4,670
|
|
|
Estimated—2024
|
3,263
|
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
|
March 31,
|
||||
(In thousands)
|
|
2020
|
|
2019
|
||||
Balance at beginning of the period
|
|
$
|
85,638
|
|
|
$
|
75,183
|
|
Additions from loans sold with servicing retained
|
|
9,447
|
|
|
6,580
|
|
||
Estimate of changes in fair value due to:
|
|
|
|
|
||||
Payoffs and paydowns
|
|
(7,024
|
)
|
|
(1,997
|
)
|
||
Changes in valuation inputs or assumptions
|
|
(14,557
|
)
|
|
(8,744
|
)
|
||
Fair value at end of the period
|
|
$
|
73,504
|
|
|
$
|
71,022
|
|
Unpaid principal balance of mortgage loans serviced for others
|
|
$
|
8,314,634
|
|
|
$
|
7,014,269
|
|
(Dollars in thousands)
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
Balance:
|
|
|
|
|
|
||||||
Non-interest bearing
|
$
|
7,556,755
|
|
|
$
|
7,216,758
|
|
|
$
|
6,353,456
|
|
NOW and interest bearing demand deposits
|
3,181,159
|
|
|
3,093,159
|
|
|
2,948,576
|
|
|||
Wealth management deposits
|
3,936,968
|
|
|
3,123,063
|
|
|
3,328,781
|
|
|||
Money market
|
8,114,659
|
|
|
7,854,189
|
|
|
6,093,596
|
|
|||
Savings
|
3,282,340
|
|
|
3,196,698
|
|
|
2,729,626
|
|
|||
Time certificates of deposit
|
5,389,779
|
|
|
5,623,271
|
|
|
5,350,707
|
|
|||
Total deposits
|
$
|
31,461,660
|
|
|
$
|
30,107,138
|
|
|
$
|
26,804,742
|
|
Mix:
|
|
|
|
|
|
||||||
Non-interest bearing
|
24
|
%
|
|
24
|
%
|
|
24
|
%
|
|||
NOW and interest bearing demand deposits
|
10
|
|
|
10
|
|
|
11
|
|
|||
Wealth management deposits
|
13
|
|
|
10
|
|
|
12
|
|
|||
Money market
|
26
|
|
|
26
|
|
|
23
|
|
|||
Savings
|
10
|
|
|
11
|
|
|
10
|
|
|||
Time certificates of deposit
|
17
|
|
|
19
|
|
|
20
|
|
|||
Total deposits
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
(In thousands)
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
FHLB advances
|
$
|
1,174,894
|
|
|
$
|
674,870
|
|
|
$
|
576,353
|
|
Other borrowings:
|
|
|
|
|
|
||||||
Notes payable
|
167,746
|
|
|
123,090
|
|
|
139,119
|
|
|||
Short-term borrowings
|
12,127
|
|
|
20,520
|
|
|
16,212
|
|
|||
Other
|
66,266
|
|
|
46,447
|
|
|
47,394
|
|
|||
Secured borrowings
|
241,364
|
|
|
228,117
|
|
|
169,469
|
|
|||
Total other borrowings
|
487,503
|
|
|
418,174
|
|
|
372,194
|
|
|||
Subordinated notes
|
436,179
|
|
|
436,095
|
|
|
139,235
|
|
|||
Total FHLB advances, other borrowings and subordinated notes
|
$
|
2,098,576
|
|
|
$
|
1,529,139
|
|
|
$
|
1,087,782
|
|
(In thousands)
|
|
Overnight Sweep Collateral
|
||
Available-for-sale securities pledged
|
|
|
||
Mortgage-backed securities
|
|
$
|
8,109
|
|
Collateralized mortgage obligations
|
|
2,481
|
|
|
Held-to-maturity securities pledged
|
|
|
||
U.S. Government agencies
|
|
20,572
|
|
|
Total collateral pledged
|
|
$
|
31,162
|
|
Excess collateral
|
|
19,035
|
|
|
Securities sold under repurchase agreements
|
|
$
|
12,127
|
|
(Dollars in thousands)
|
Common
Securities
|
|
Trust
Preferred
Securities
|
|
Junior
Subordinated
Debentures
|
|
Rate
Structure
|
|
Contractual rate
at 3/31/2020
|
|
Issue
Date
|
|
Maturity
Date
|
|
Earliest
Redemption
Date
|
|||||||
Wintrust Capital Trust III
|
$
|
774
|
|
|
$
|
25,000
|
|
|
$
|
25,774
|
|
|
L+3.25
|
|
5.08
|
%
|
|
04/2003
|
|
04/2033
|
|
04/2008
|
Wintrust Statutory Trust IV
|
619
|
|
|
20,000
|
|
|
20,619
|
|
|
L+2.80
|
|
4.25
|
%
|
|
12/2003
|
|
12/2033
|
|
12/2008
|
|||
Wintrust Statutory Trust V
|
1,238
|
|
|
40,000
|
|
|
41,238
|
|
|
L+2.60
|
|
4.05
|
%
|
|
05/2004
|
|
05/2034
|
|
06/2009
|
|||
Wintrust Capital Trust VII
|
1,550
|
|
|
50,000
|
|
|
51,550
|
|
|
L+1.95
|
|
2.69
|
%
|
|
12/2004
|
|
03/2035
|
|
03/2010
|
|||
Wintrust Capital Trust VIII
|
1,238
|
|
|
25,000
|
|
|
26,238
|
|
|
L+1.45
|
|
2.90
|
%
|
|
08/2005
|
|
09/2035
|
|
09/2010
|
|||
Wintrust Capital Trust IX
|
1,547
|
|
|
50,000
|
|
|
51,547
|
|
|
L+1.63
|
|
2.37
|
%
|
|
09/2006
|
|
09/2036
|
|
09/2011
|
|||
Northview Capital Trust I
|
186
|
|
|
6,000
|
|
|
6,186
|
|
|
L+3.00
|
|
4.76
|
%
|
|
08/2003
|
|
11/2033
|
|
08/2008
|
|||
Town Bankshares Capital Trust I
|
186
|
|
|
6,000
|
|
|
6,186
|
|
|
L+3.00
|
|
4.76
|
%
|
|
08/2003
|
|
11/2033
|
|
08/2008
|
|||
First Northwest Capital Trust I
|
155
|
|
|
5,000
|
|
|
5,155
|
|
|
L+3.00
|
|
4.45
|
%
|
|
05/2004
|
|
05/2034
|
|
05/2009
|
|||
Suburban Illinois Capital Trust II
|
464
|
|
|
15,000
|
|
|
15,464
|
|
|
L+1.75
|
|
2.49
|
%
|
|
12/2006
|
|
12/2036
|
|
12/2011
|
|||
Community Financial Shares Statutory Trust II
|
109
|
|
|
3,500
|
|
|
3,609
|
|
|
L+1.62
|
|
2.36
|
%
|
|
06/2007
|
|
09/2037
|
|
06/2012
|
|||
Total
|
|
|
|
|
$
|
253,566
|
|
|
|
|
3.36
|
%
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
Three Months Ended
|
||||||
Revenue from contracts with customers
|
|
Location in income statement
|
March 31,
2020 |
|
March 31,
2019 |
||||
Brokerage and insurance product commissions
|
|
Wealth management
|
$
|
5,281
|
|
|
$
|
4,516
|
|
Trust
|
|
Wealth management
|
5,291
|
|
|
5,327
|
|
||
Asset management
|
|
Wealth management
|
15,369
|
|
|
14,134
|
|
||
Total wealth management
|
|
|
25,941
|
|
|
23,977
|
|
||
Mortgage broker fees
|
|
Mortgage banking
|
53
|
|
|
182
|
|
||
Service charges on deposit accounts
|
|
Service charges on deposit accounts
|
11,265
|
|
|
8,848
|
|
||
Administrative services
|
|
Other non-interest income
|
1,112
|
|
|
1,030
|
|
||
Card related fees
|
|
Other non-interest income
|
2,106
|
|
|
2,556
|
|
||
Other deposit related fees
|
|
Other non-interest income
|
3,178
|
|
|
2,789
|
|
||
Total revenue from contracts with customers
|
|
|
$
|
43,655
|
|
|
$
|
39,382
|
|
(Dollars in thousands)
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
Contract assets
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||
Contract liabilities
|
$
|
728
|
|
|
$
|
1,356
|
|
|
$
|
1,639
|
|
|
|
|
|
|
|
||||||
Mortgage broker fees receivable
|
$
|
11
|
|
|
$
|
19
|
|
|
$
|
34
|
|
Administrative services receivable
|
214
|
|
|
194
|
|
|
147
|
|
|||
Wealth management receivable
|
8,218
|
|
|
9,118
|
|
|
10,397
|
|
|||
Card related fees receivable
|
422
|
|
|
266
|
|
|
385
|
|
|||
Total receivables from contracts with customer
|
$
|
8,865
|
|
|
$
|
9,597
|
|
|
$
|
10,963
|
|
(Dollars in thousands)
|
|
||
Estimated remaining in 2020
|
$
|
129
|
|
Estimated—2021
|
303
|
|
|
Estimated—2022
|
153
|
|
|
Estimated—2023
|
143
|
|
|
Estimated—2024
|
—
|
|
|
Total
|
$
|
728
|
|
|
Three months ended
|
|
$ Change in
Contribution
|
|
% Change in
Contribution
|
|||||||||
(Dollars in thousands)
|
March 31,
2020 |
|
March 31,
2019 |
|
||||||||||
Net interest income:
|
|
|
|
|
|
|
|
|||||||
Community Banking
|
$
|
206,835
|
|
|
$
|
211,424
|
|
|
$
|
(4,589
|
)
|
|
(2
|
)%
|
Specialty Finance
|
40,712
|
|
|
37,706
|
|
|
3,006
|
|
|
8
|
|
|||
Wealth Management
|
7,792
|
|
|
7,502
|
|
|
290
|
|
|
4
|
|
|||
Total Operating Segments
|
255,339
|
|
|
256,632
|
|
|
(1,293
|
)
|
|
(1
|
)
|
|||
Intersegment Eliminations
|
6,104
|
|
|
5,354
|
|
|
750
|
|
|
14
|
|
|||
Consolidated net interest income
|
$
|
261,443
|
|
|
$
|
261,986
|
|
|
$
|
(543
|
)
|
|
—
|
%
|
Non-interest income:
|
|
|
|
|
|
|
|
|||||||
Community Banking
|
$
|
81,003
|
|
|
$
|
48,267
|
|
|
$
|
32,736
|
|
|
68
|
%
|
Specialty Finance
|
21,308
|
|
|
19,606
|
|
|
1,702
|
|
|
9
|
|
|||
Wealth Management
|
24,130
|
|
|
25,035
|
|
|
(905
|
)
|
|
(4
|
)
|
|||
Total Operating Segments
|
126,441
|
|
|
92,908
|
|
|
33,533
|
|
|
36
|
|
|||
Intersegment Eliminations
|
(13,199
|
)
|
|
(11,251
|
)
|
|
(1,948
|
)
|
|
(17
|
)
|
|||
Consolidated non-interest income
|
$
|
113,242
|
|
|
$
|
81,657
|
|
|
$
|
31,585
|
|
|
39
|
%
|
Net revenue:
|
|
|
|
|
|
|
|
|||||||
Community Banking
|
$
|
287,838
|
|
|
$
|
259,691
|
|
|
$
|
28,147
|
|
|
11
|
%
|
Specialty Finance
|
62,020
|
|
|
57,312
|
|
|
4,708
|
|
|
8
|
|
|||
Wealth Management
|
31,922
|
|
|
32,537
|
|
|
(615
|
)
|
|
(2
|
)
|
|||
Total Operating Segments
|
381,780
|
|
|
349,540
|
|
|
32,240
|
|
|
9
|
|
|||
Intersegment Eliminations
|
(7,095
|
)
|
|
(5,897
|
)
|
|
(1,198
|
)
|
|
(20
|
)
|
|||
Consolidated net revenue
|
$
|
374,685
|
|
|
$
|
343,643
|
|
|
$
|
31,042
|
|
|
9
|
%
|
Segment profit:
|
|
|
|
|
|
|
|
|||||||
Community Banking
|
$
|
34,589
|
|
|
$
|
60,326
|
|
|
$
|
(25,737
|
)
|
|
(43
|
)%
|
Specialty Finance
|
22,133
|
|
|
21,848
|
|
|
285
|
|
|
1
|
|
|||
Wealth Management
|
6,090
|
|
|
6,972
|
|
|
(882
|
)
|
|
(13
|
)
|
|||
Consolidated net income
|
$
|
62,812
|
|
|
$
|
89,146
|
|
|
$
|
(26,334
|
)
|
|
(30
|
)%
|
Segment assets:
|
|
|
|
|
|
|
|
|||||||
Community Banking
|
$
|
31,499,899
|
|
|
$
|
25,997,025
|
|
|
$
|
5,502,874
|
|
|
21
|
%
|
Specialty Finance
|
6,133,548
|
|
|
5,234,210
|
|
|
899,338
|
|
|
17
|
|
|||
Wealth Management
|
1,166,400
|
|
|
1,127,386
|
|
|
39,014
|
|
|
3
|
|
|||
Consolidated total assets
|
$
|
38,799,847
|
|
|
$
|
32,358,621
|
|
|
$
|
6,441,226
|
|
|
20
|
%
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||||||||||
(In thousands)
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||||||||
Derivatives designated as hedging instruments under ASC 815:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate derivatives designated as Cash Flow Hedges
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,353
|
|
|
$
|
57,274
|
|
|
$
|
19,385
|
|
|
$
|
2,589
|
|
Interest rate derivatives designated as Fair Value Hedges
|
—
|
|
|
310
|
|
|
1,260
|
|
|
16,123
|
|
|
6,523
|
|
|
3,167
|
|
||||||
Total derivatives designated as hedging instruments under ASC 815
|
$
|
—
|
|
|
$
|
310
|
|
|
$
|
4,613
|
|
|
$
|
73,397
|
|
|
$
|
25,908
|
|
|
$
|
5,756
|
|
Derivatives not designated as hedging instruments under ASC 815:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate derivatives
|
$
|
259,986
|
|
|
$
|
100,259
|
|
|
$
|
63,704
|
|
|
$
|
256,193
|
|
|
$
|
100,897
|
|
|
$
|
63,536
|
|
Interest rate lock commitments
|
39,816
|
|
|
2,860
|
|
|
4,387
|
|
|
1,105
|
|
|
259
|
|
|
—
|
|
||||||
Forward commitments to sell mortgage loans
|
1,514
|
|
|
142
|
|
|
2,416
|
|
|
36,872
|
|
|
2,070
|
|
|
4,180
|
|
||||||
Foreign exchange contracts
|
52
|
|
|
73
|
|
|
384
|
|
|
53
|
|
|
70
|
|
|
396
|
|
||||||
Total derivatives not designated as hedging instruments under ASC 815
|
$
|
301,368
|
|
|
$
|
103,334
|
|
|
$
|
70,891
|
|
|
$
|
294,223
|
|
|
$
|
103,296
|
|
|
$
|
68,112
|
|
Total Derivatives
|
$
|
301,368
|
|
|
$
|
103,644
|
|
|
$
|
75,504
|
|
|
$
|
367,620
|
|
|
$
|
129,204
|
|
|
$
|
73,868
|
|
|
March 31, 2020
|
||||||
(In thousands)
|
Notional
|
|
Fair Value
|
||||
Maturity Date
|
Amount
|
|
Asset (Liability)
|
||||
Interest Rate Swaps:
|
|
|
|
||||
October 2021
|
$
|
25,000
|
|
|
$
|
(715
|
)
|
November 2021
|
20,000
|
|
|
(624
|
)
|
||
December 2021
|
165,000
|
|
|
(5,560
|
)
|
||
March 2022
|
500,000
|
|
|
(365
|
)
|
||
May 2022
|
370,000
|
|
|
(14,922
|
)
|
||
June 2022
|
160,000
|
|
|
(6,620
|
)
|
||
July 2022
|
230,000
|
|
|
(9,596
|
)
|
||
August 2022
|
235,000
|
|
|
(10,226
|
)
|
||
March 2023
|
250,000
|
|
|
(603
|
)
|
||
April 2024
|
250,000
|
|
|
(989
|
)
|
||
Interest Rate Collars:
|
|
|
|
||||
September 2023
|
117,857
|
|
|
(7,054
|
)
|
||
Total Cash Flow Hedges
|
$
|
2,322,857
|
|
|
$
|
(57,274
|
)
|
|
Three Months Ended
|
||||||
(In thousands)
|
March 31,
2020 |
|
March 31,
2019 |
||||
Unrealized (loss) gain at beginning of period
|
$
|
(17,943
|
)
|
|
$
|
10,742
|
|
Amount reclassified from accumulated other comprehensive income to interest expense on deposits, other borrowings and junior subordinated debentures
|
1,090
|
|
|
(3,562
|
)
|
||
Amount of loss recognized in other comprehensive income
|
(39,783
|
)
|
|
(1,434
|
)
|
||
Unrealized (loss) gain at end of period
|
$
|
(56,636
|
)
|
|
$
|
5,746
|
|
|
|
|
March 31, 2020
|
||||||||||
(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
|
|
$
|
176,662
|
|
|
$
|
15,769
|
|
|
$
|
—
|
|
|
Available-for-sale debt securities
|
|
1,423
|
|
|
145
|
|
|
—
|
|
(In thousands)
Derivatives in Fair Value Hedging Relationships
|
Location of (Loss)/Gain Recognized
in Income on Derivative
|
|
Three Months Ended
|
||
March 31, 2020
|
|||||
Interest rate swaps
|
Interest and fees on loans
|
|
$
|
19
|
|
|
Interest income - investment securities
|
|
—
|
|
(In thousands)
|
|
|
Three Months Ended
|
||||||
Derivative
|
Location in income statement
|
|
March 31,
2020 |
|
March 31,
2019 |
||||
Interest rate swaps and caps
|
Trading (losses) gains, net
|
|
$
|
(428
|
)
|
|
$
|
(191
|
)
|
Mortgage banking derivatives
|
Mortgage banking revenue
|
|
17,267
|
|
|
50
|
|
||
Foreign exchange contracts
|
Trading (losses) gains, net
|
|
(4
|
)
|
|
(12
|
)
|
||
Covered call options
|
Fees from covered call options
|
|
2,292
|
|
|
1,784
|
|
||
Derivative contract held as economic hedge on MSRs
|
Mortgage banking revenue
|
|
4,160
|
|
|
—
|
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||||||||||
|
Fair Value
|
|
Fair Value
|
||||||||||||||||||||
(In thousands)
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||||||||
Gross Amounts Recognized
|
$
|
259,986
|
|
|
$
|
100,569
|
|
|
$
|
68,317
|
|
|
$
|
329,590
|
|
|
$
|
126,805
|
|
|
$
|
69,292
|
|
Less: Amounts offset in the Statements of Financial Condition
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net amount presented in the Statements of Financial Condition
|
$
|
259,986
|
|
|
$
|
100,569
|
|
|
$
|
68,317
|
|
|
$
|
329,590
|
|
|
$
|
126,805
|
|
|
$
|
69,292
|
|
Gross amounts not offset in the Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Offsetting Derivative Positions
|
(1,048
|
)
|
|
(2,561
|
)
|
|
(18,878
|
)
|
|
(1,048
|
)
|
|
(2,561
|
)
|
|
(18,878
|
)
|
||||||
Collateral Posted
|
—
|
|
|
—
|
|
|
—
|
|
|
(328,542
|
)
|
|
(124,244
|
)
|
|
(45,540
|
)
|
||||||
Net Credit Exposure
|
$
|
258,938
|
|
|
$
|
98,008
|
|
|
$
|
49,439
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,874
|
|
•
|
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.
|
|
March 31, 2020
|
||||||||||||||
(Dollars in thousands)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
121,670
|
|
|
$
|
121,670
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. Government agencies
|
368,643
|
|
|
—
|
|
|
366,186
|
|
|
2,457
|
|
||||
Municipal
|
146,609
|
|
|
—
|
|
|
33,342
|
|
|
113,267
|
|
||||
Corporate notes
|
101,018
|
|
|
—
|
|
|
101,018
|
|
|
—
|
|
||||
Mortgage-backed
|
2,833,019
|
|
|
—
|
|
|
2,833,019
|
|
|
—
|
|
||||
Trading account securities
|
2,257
|
|
|
—
|
|
|
2,257
|
|
|
—
|
|
||||
Equity securities with readily determinable fair value
|
47,310
|
|
|
39,244
|
|
|
8,066
|
|
|
—
|
|
||||
Mortgage loans held-for-sale
|
656,934
|
|
|
—
|
|
|
656,934
|
|
|
—
|
|
||||
Loans held-for-investment
|
142,267
|
|
|
—
|
|
|
132,699
|
|
|
9,568
|
|
||||
MSRs
|
73,504
|
|
|
—
|
|
|
—
|
|
|
73,504
|
|
||||
Nonqualified deferred compensation assets
|
12,253
|
|
|
—
|
|
|
12,253
|
|
|
—
|
|
||||
Derivative assets
|
301,368
|
|
|
—
|
|
|
261,552
|
|
|
39,816
|
|
||||
Total
|
$
|
4,806,852
|
|
|
$
|
160,914
|
|
|
$
|
4,407,326
|
|
|
$
|
238,612
|
|
Derivative liabilities
|
$
|
367,620
|
|
|
$
|
—
|
|
|
$
|
367,620
|
|
|
$
|
—
|
|
|
|
December 31, 2019
|
||||||||||||||
(Dollars in thousands)
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
|
$
|
121,088
|
|
|
$
|
121,088
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. Government agencies
|
|
365,442
|
|
|
—
|
|
|
362,796
|
|
|
2,646
|
|
||||
Municipal
|
|
145,318
|
|
|
—
|
|
|
33,368
|
|
|
111,950
|
|
||||
Corporate notes
|
|
94,841
|
|
|
—
|
|
|
94,841
|
|
|
—
|
|
||||
Mortgage-backed
|
|
2,379,525
|
|
|
—
|
|
|
2,379,525
|
|
|
—
|
|
||||
Trading account securities
|
|
1,068
|
|
|
—
|
|
|
1,068
|
|
|
—
|
|
||||
Equity securities with readily determinable fair value
|
|
50,840
|
|
|
42,774
|
|
|
8,066
|
|
|
—
|
|
||||
Mortgage loans held-for-sale
|
|
377,313
|
|
|
—
|
|
|
377,313
|
|
|
—
|
|
||||
Loans held-for-investment
|
|
132,718
|
|
|
—
|
|
|
123,098
|
|
|
9,620
|
|
||||
MSRs
|
|
85,638
|
|
|
—
|
|
|
—
|
|
|
85,638
|
|
||||
Nonqualified deferred compensation assets
|
|
14,213
|
|
|
—
|
|
|
14,213
|
|
|
—
|
|
||||
Derivative assets
|
|
103,644
|
|
|
—
|
|
|
101,013
|
|
|
2,631
|
|
||||
Total
|
|
$
|
3,871,648
|
|
|
$
|
163,862
|
|
|
$
|
3,495,301
|
|
|
$
|
212,485
|
|
Derivative liabilities
|
|
$
|
129,204
|
|
|
$
|
—
|
|
|
$
|
129,204
|
|
|
$
|
—
|
|
|
March 31, 2019
|
||||||||||||||
(Dollars in thousands)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
126,718
|
|
|
$
|
126,718
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. Government agencies
|
130,687
|
|
|
—
|
|
|
127,694
|
|
|
2,993
|
|
||||
Municipal
|
136,353
|
|
|
—
|
|
|
32,519
|
|
|
103,834
|
|
||||
Corporate notes
|
93,333
|
|
|
—
|
|
|
93,333
|
|
|
—
|
|
||||
Mortgage-backed
|
1,698,691
|
|
|
—
|
|
|
1,698,691
|
|
|
—
|
|
||||
Trading account securities
|
559
|
|
|
—
|
|
|
559
|
|
|
—
|
|
||||
Equity securities with readily determinable fair value
|
47,653
|
|
|
39,587
|
|
|
8,066
|
|
|
—
|
|
||||
Mortgage loans held-for-sale
|
248,557
|
|
|
—
|
|
|
248,557
|
|
|
—
|
|
||||
Loans held-for-investment
|
101,071
|
|
|
—
|
|
|
89,822
|
|
|
11,249
|
|
||||
MSRs
|
71,022
|
|
|
—
|
|
|
—
|
|
|
71,022
|
|
||||
Nonqualified deferred compensation assets
|
13,230
|
|
|
—
|
|
|
13,230
|
|
|
—
|
|
||||
Derivative assets
|
75,504
|
|
|
—
|
|
|
72,415
|
|
|
3,089
|
|
||||
Total
|
$
|
2,743,378
|
|
|
$
|
166,305
|
|
|
$
|
2,384,886
|
|
|
$
|
192,187
|
|
Derivative liabilities
|
$
|
73,868
|
|
|
$
|
—
|
|
|
$
|
73,868
|
|
|
$
|
—
|
|
|
|
|
U.S. Government Agencies
|
|
Loans held-for- investment
|
|
Mortgage
servicing rights
|
|
Derivative Assets
|
||||||||||
(Dollars in thousands)
|
Municipal
|
|
|
|
|
||||||||||||||
Balance at January 1, 2020
|
$
|
111,950
|
|
|
$
|
2,646
|
|
|
$
|
9,620
|
|
|
$
|
85,638
|
|
|
$
|
2,631
|
|
Total net gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (1)
|
—
|
|
|
—
|
|
|
(78
|
)
|
|
(12,134
|
)
|
|
37,185
|
|
|||||
Other comprehensive income (loss)
|
(1,249
|
)
|
|
(32
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Purchases
|
5,875
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Issuances
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Settlements
|
(3,309
|
)
|
|
(157
|
)
|
|
(96
|
)
|
|
—
|
|
|
—
|
|
|||||
Net transfers into/(out of) Level 3
|
—
|
|
|
—
|
|
|
122
|
|
|
—
|
|
|
—
|
|
|||||
Balance at March 31, 2020
|
$
|
113,267
|
|
|
$
|
2,457
|
|
|
$
|
9,568
|
|
|
$
|
73,504
|
|
|
$
|
39,816
|
|
|
|
|
U.S. Government Agencies
|
|
Loans held-for- investment
|
|
Mortgage
servicing rights
|
|
Derivative Assets
|
||||||||||
(Dollars in thousands)
|
Municipal
|
|
|
|
|
||||||||||||||
Balance at January 1, 2019
|
$
|
108,926
|
|
|
$
|
3,150
|
|
|
$
|
11,347
|
|
|
$
|
75,183
|
|
|
$
|
2,457
|
|
Total net gains (losses) included in:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (1)
|
—
|
|
|
—
|
|
|
167
|
|
|
(4,161
|
)
|
|
632
|
|
|||||
Other comprehensive income (loss)
|
1,537
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Purchases
|
969
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Issuances
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Settlements
|
(7,598
|
)
|
|
(158
|
)
|
|
(465
|
)
|
|
—
|
|
|
—
|
|
|||||
Net transfers into/(out of) Level 3
|
—
|
|
|
—
|
|
|
200
|
|
|
—
|
|
|
—
|
|
|||||
Balance at March 31, 2019
|
$
|
103,834
|
|
|
$
|
2,993
|
|
|
$
|
11,249
|
|
|
$
|
71,022
|
|
|
$
|
3,089
|
|
(1)
|
Changes in the balance of MSRs and derivative assets related to fair value adjustments are recorded as components of mortgage banking revenue. Changes in the balance of loans held-for-investment related to fair value adjustments are recorded as other non-interest income.
|
|
March 31, 2020
|
|
Three Months Ended March 31, 2020
Fair Value Losses Recognized, net
|
||||||||||||||||
(Dollars in thousands)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||||
Individually assessed loans - foreclosure probable and collateral-dependent
|
$
|
147,443
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
147,443
|
|
|
$
|
4,060
|
|
Other real estate owned (1)
|
11,026
|
|
|
—
|
|
|
—
|
|
|
11,026
|
|
|
306
|
|
|||||
Total
|
$
|
158,469
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
158,469
|
|
|
$
|
4,366
|
|
(1)
|
Fair value losses recognized, net on other real estate owned include valuation adjustments and charge-offs during the respective period.
|
(Dollars in thousands)
|
Fair Value
|
|
Valuation Methodology
|
|
Significant Unobservable Input
|
|
Range
of Inputs
|
|
Weighted
Average
of Inputs
|
|
Impact to valuation
from an increased or
higher input value
|
||
Measured at fair value on a recurring basis:
|
|||||||||||||
Municipal Securities
|
$
|
113,267
|
|
|
Bond pricing
|
|
Equivalent rating
|
|
BBB-AA+
|
|
N/A
|
|
Increase
|
U.S. Government agencies
|
2,457
|
|
|
Bond pricing
|
|
Equivalent rating
|
|
AAA
|
|
AAA
|
|
Increase
|
|
Loans held-for-investment
|
9,568
|
|
|
Discounted cash flows
|
|
Discount rate
|
|
3%-4%
|
|
3.40%
|
|
Decrease
|
|
|
|
|
|
|
Credit discount
|
|
0%-6%
|
|
1.25%
|
|
Decrease
|
||
|
|
|
|
|
Constant prepayment rate (CPR)
|
|
15.69%
|
|
15.69%
|
|
Decrease
|
||
MSRs
|
73,504
|
|
|
Discounted cash flows
|
|
Discount rate
|
|
4%-21%
|
|
9.98%
|
|
Decrease
|
|
|
|
|
|
|
Constant prepayment rate (CPR)
|
|
0%-94%
|
|
15.69%
|
|
Decrease
|
||
|
|
|
|
|
Cost of servicing
|
|
$70-$200
|
|
$77
|
|
Decrease
|
||
|
|
|
|
|
Cost of servicing - delinquent
|
|
$200-$1,000
|
|
$386
|
|
Decrease
|
||
Derivatives
|
39,816
|
|
|
Discounted cash flows
|
|
Pull-through rate
|
|
10%-100%
|
|
86%
|
|
Increase
|
|
Measured at fair value on a non-recurring basis:
|
|||||||||||||
Individually assessed loans - foreclosure probable and collateral-dependent
|
$
|
147,443
|
|
|
Appraisal value
|
|
Appraisal adjustment - cost of sale
|
|
10%
|
|
10.00%
|
|
Decrease
|
Other real estate owned
|
11,026
|
|
|
Appraisal value
|
|
Appraisal adjustment - cost of sale
|
|
10%
|
|
10.00%
|
|
Decrease
|
|
At March 31, 2020
|
|
At December 31, 2019
|
|
At March 31, 2019
|
||||||||||||||||||
|
Carrying
|
|
Fair
|
|
Carrying
|
|
Fair
|
|
Carrying
|
|
Fair
|
||||||||||||
(In thousands)
|
Value
|
|
Value
|
|
Value
|
|
Value
|
|
Value
|
|
Value
|
||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
349,427
|
|
|
$
|
349,427
|
|
|
$
|
286,476
|
|
|
$
|
286,476
|
|
|
$
|
270,823
|
|
|
$
|
270,823
|
|
Interest bearing deposits with banks
|
1,943,743
|
|
|
1,943,743
|
|
|
2,164,560
|
|
|
2,164,560
|
|
|
1,609,852
|
|
|
1,609,852
|
|
||||||
Available-for-sale securities
|
3,570,959
|
|
|
3,570,959
|
|
|
3,106,214
|
|
|
3,106,214
|
|
|
2,185,782
|
|
|
2,185,782
|
|
||||||
Held-to-maturity securities
|
865,376
|
|
|
879,192
|
|
|
1,134,400
|
|
|
1,138,396
|
|
|
1,051,542
|
|
|
1,041,695
|
|
||||||
Trading account securities
|
2,257
|
|
|
2,257
|
|
|
1,068
|
|
|
1,068
|
|
|
559
|
|
|
559
|
|
||||||
Equity securities with readily determinable fair value
|
47,310
|
|
|
47,310
|
|
|
50,840
|
|
|
50,840
|
|
|
47,653
|
|
|
47,653
|
|
||||||
FHLB and FRB stock, at cost
|
134,546
|
|
|
134,546
|
|
|
100,739
|
|
|
100,739
|
|
|
89,013
|
|
|
89,013
|
|
||||||
Brokerage customer receivables
|
16,293
|
|
|
16,293
|
|
|
16,573
|
|
|
16,573
|
|
|
14,219
|
|
|
14,219
|
|
||||||
Mortgage loans held-for-sale, at fair value
|
656,934
|
|
|
656,934
|
|
|
377,313
|
|
|
377,313
|
|
|
248,557
|
|
|
248,557
|
|
||||||
Loans held-for-investment, at fair value
|
142,267
|
|
|
142,267
|
|
|
132,718
|
|
|
132,718
|
|
|
101,071
|
|
|
101,071
|
|
||||||
Loans held-for-investment, at amortized cost
|
27,665,054
|
|
|
27,469,489
|
|
|
26,667,572
|
|
|
26,659,903
|
|
|
24,113,558
|
|
|
24,123,328
|
|
||||||
Nonqualified deferred compensation assets
|
12,253
|
|
|
12,253
|
|
|
14,213
|
|
|
14,213
|
|
|
13,230
|
|
|
13,230
|
|
||||||
Derivative assets
|
301,368
|
|
|
301,368
|
|
|
103,644
|
|
|
103,644
|
|
|
75,504
|
|
|
75,504
|
|
||||||
Accrued interest receivable and other
|
275,499
|
|
|
275,499
|
|
|
303,090
|
|
|
303,090
|
|
|
275,464
|
|
|
275,464
|
|
||||||
Total financial assets
|
$
|
35,983,286
|
|
|
$
|
35,801,537
|
|
|
$
|
34,459,420
|
|
|
$
|
34,455,747
|
|
|
$
|
30,096,827
|
|
|
$
|
30,096,750
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-maturity deposits
|
$
|
26,071,881
|
|
|
$
|
26,071,881
|
|
|
$
|
24,483,867
|
|
|
$
|
24,483,867
|
|
|
$
|
21,454,035
|
|
|
$
|
21,454,035
|
|
Deposits with stated maturities
|
5,389,779
|
|
|
5,394,523
|
|
|
5,623,271
|
|
|
5,635,475
|
|
|
5,350,707
|
|
|
5,377,388
|
|
||||||
FHLB advances
|
1,174,894
|
|
|
1,130,327
|
|
|
674,870
|
|
|
715,129
|
|
|
576,353
|
|
|
604,976
|
|
||||||
Other borrowings
|
487,503
|
|
|
487,503
|
|
|
418,174
|
|
|
418,174
|
|
|
372,194
|
|
|
372,194
|
|
||||||
Subordinated notes
|
436,179
|
|
|
487,745
|
|
|
436,095
|
|
|
458,796
|
|
|
139,235
|
|
|
144,019
|
|
||||||
Junior subordinated debentures
|
253,566
|
|
|
224,523
|
|
|
253,566
|
|
|
243,158
|
|
|
253,566
|
|
|
252,451
|
|
||||||
Derivative liabilities
|
367,620
|
|
|
367,620
|
|
|
129,204
|
|
|
129,204
|
|
|
73,868
|
|
|
73,868
|
|
||||||
Accrued interest payable
|
27,696
|
|
|
27,696
|
|
|
19,940
|
|
|
19,940
|
|
|
19,569
|
|
|
19,569
|
|
||||||
Total financial liabilities
|
$
|
34,209,118
|
|
|
$
|
34,191,818
|
|
|
$
|
32,038,987
|
|
|
$
|
32,103,743
|
|
|
$
|
28,239,527
|
|
|
$
|
28,298,500
|
|
Stock Options
|
Common
Shares
|
|
Weighted
Average
Strike Price
|
|
Remaining
Contractual
Term (1)
|
|
Intrinsic
Value (2)
($000)
|
|||||
Outstanding at January 1, 2020
|
755,332
|
|
|
$
|
42.43
|
|
|
|
|
|
||
Granted
|
—
|
|
|
—
|
|
|
|
|
|
|||
Exercised
|
(94,653
|
)
|
|
38.69
|
|
|
|
|
|
|||
Forfeited or canceled
|
—
|
|
|
—
|
|
|
|
|
|
|||
Outstanding at March 31, 2020
|
660,679
|
|
|
$
|
42.97
|
|
|
2.5
|
|
$
|
—
|
|
Exercisable at March 31, 2020
|
650,456
|
|
|
$
|
42.95
|
|
|
2.4
|
|
$
|
1
|
|
Stock Options
|
Common
Shares
|
|
Weighted
Average
Strike Price
|
|
Remaining
Contractual
Term (1)
|
|
Intrinsic
Value (2)
($000)
|
|||||
Outstanding at January 1, 2019
|
795,014
|
|
|
$
|
42.25
|
|
|
|
|
|
||
Granted
|
—
|
|
|
—
|
|
|
|
|
|
|||
Exercised
|
(78,667
|
)
|
|
37.41
|
|
|
|
|
|
|||
Forfeited or canceled
|
—
|
|
|
—
|
|
|
|
|
|
|||
Outstanding at March 31, 2019
|
716,347
|
|
|
$
|
42.79
|
|
|
2.9
|
|
$
|
17,583
|
|
Exercisable at March 31, 2019
|
701,227
|
|
|
$
|
42.75
|
|
|
2.9
|
|
$
|
17,234
|
|
(1)
|
Represents the remaining weighted average contractual life in years.
|
(2)
|
Aggregate intrinsic value represents the total pre-tax intrinsic value (i.e., the difference between the Company's stock price on the last trading day of the quarter 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 quarter. Options with exercise prices above the stock price on the last trading day of the quarter are excluded from the calculation of intrinsic value. The intrinsic value will change based on the fair market value of the Company's stock.
|
|
Three months ended March 31, 2020
|
|
Three months ended March 31, 2019
|
||||||||||
Restricted Shares
|
Common
Shares |
|
Weighted
Average Grant-Date Fair Value |
|
Common
Shares |
|
Weighted
Average Grant-Date Fair Value |
||||||
Outstanding at January 1
|
144,328
|
|
|
$
|
60.37
|
|
|
143,263
|
|
|
$
|
60.80
|
|
Granted
|
99,963
|
|
|
64.10
|
|
|
9,673
|
|
|
71.66
|
|
||
Vested and issued
|
(9,633
|
)
|
|
75.69
|
|
|
(11,042
|
)
|
|
75.00
|
|
||
Forfeited or canceled
|
(3,538
|
)
|
|
81.89
|
|
|
(215
|
)
|
|
93.14
|
|
||
Outstanding at March 31
|
231,120
|
|
|
$
|
61.02
|
|
|
141,679
|
|
|
$
|
60.38
|
|
Vested, but not issuable at March 31
|
92,244
|
|
|
$
|
52.23
|
|
|
90,824
|
|
|
$
|
52.02
|
|
|
Three months ended March 31, 2020
|
|
Three months ended March 31, 2019
|
||||||||||
Performance-based Stock
|
Common
Shares |
|
Weighted
Average Grant-Date Fair Value |
|
Common
Shares |
|
Weighted
Average Grant-Date Fair Value |
||||||
Outstanding at January 1
|
465,515
|
|
|
$
|
74.37
|
|
|
396,855
|
|
|
$
|
67.71
|
|
Granted
|
166,547
|
|
|
64.10
|
|
|
173,856
|
|
|
71.57
|
|
||
Added by performance factor at vesting
|
48,831
|
|
|
72.59
|
|
|
33,950
|
|
|
40.99
|
|
||
Vested and issued
|
(180,596
|
)
|
|
72.59
|
|
|
(128,238
|
)
|
|
41.00
|
|
||
Expired, canceled or forfeited
|
(6,071
|
)
|
|
73.66
|
|
|
(2,747
|
)
|
|
67.85
|
|
||
Outstanding at March 31
|
494,226
|
|
|
$
|
71.39
|
|
|
473,676
|
|
|
$
|
74.44
|
|
Vested, but deferred at March 31
|
34,166
|
|
|
$
|
43.27
|
|
|
33,451
|
|
|
$
|
42.70
|
|
|
Accumulated
Unrealized
Gains (Losses)
on Securities
|
|
Accumulated
Unrealized (Losses) Gains on
Derivative
Instruments
|
|
Accumulated
Foreign
Currency
Translation
Adjustments
|
|
Total
Accumulated
Other
Comprehensive
Loss
|
||||||||
Balance at January 1, 2020
|
$
|
14,982
|
|
|
$
|
(13,141
|
)
|
|
$
|
(36,519
|
)
|
|
$
|
(34,678
|
)
|
Other comprehensive income (loss) during the period, net of tax, before reclassifications
|
67,007
|
|
|
(29,170
|
)
|
|
(11,145
|
)
|
|
26,692
|
|
||||
Amount reclassified from accumulated other comprehensive gain (loss) into net income, net of tax
|
(359
|
)
|
|
799
|
|
|
—
|
|
|
440
|
|
||||
Amount reclassified from accumulated other comprehensive loss related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax
|
(57
|
)
|
|
—
|
|
|
—
|
|
|
(57
|
)
|
||||
Net other comprehensive income (loss) during the period, net of tax
|
$
|
66,591
|
|
|
$
|
(28,371
|
)
|
|
$
|
(11,145
|
)
|
|
$
|
27,075
|
|
Balance at March 31, 2020
|
$
|
81,573
|
|
|
$
|
(41,512
|
)
|
|
$
|
(47,664
|
)
|
|
$
|
(7,603
|
)
|
|
|
|
|
|
|
|
|
||||||||
Balance at January 1, 2019
|
$
|
(42,353
|
)
|
|
$
|
7,857
|
|
|
$
|
(42,376
|
)
|
|
$
|
(76,872
|
)
|
Other comprehensive income (loss) during the period, net of tax, before reclassifications
|
27,956
|
|
|
(1,039
|
)
|
|
2,277
|
|
|
29,194
|
|
||||
Amount reclassified from accumulated other comprehensive loss into net income, net of tax
|
49
|
|
|
(2,612
|
)
|
|
—
|
|
|
(2,563
|
)
|
||||
Amount reclassified from accumulated other comprehensive loss related to amortization of unrealized gains on investment securities transferred to held-to-maturity from available-for-sale, net of tax
|
(103
|
)
|
|
—
|
|
|
—
|
|
|
(103
|
)
|
||||
Net other comprehensive income (loss) during the period, net of tax
|
$
|
27,902
|
|
|
$
|
(3,651
|
)
|
|
$
|
2,277
|
|
|
$
|
26,528
|
|
Balance at March 31, 2019
|
$
|
(14,451
|
)
|
|
$
|
4,206
|
|
|
$
|
(40,099
|
)
|
|
$
|
(50,344
|
)
|
|
|
|
|
|
|
|
|
|
|
Amount Reclassified from Accumulated Other Comprehensive Income for the
|
|
|||||||
Details Regarding the Component of Accumulated Other Comprehensive Income
|
|
Three Months Ended
|
|
Impacted Line on the
Consolidated Statements of Income
|
||||||
|
March 31,
|
|
||||||||
|
2020
|
|
2019
|
|
||||||
Accumulated unrealized gains (losses) on securities
|
|
|
|
|
|
|
||||
Gains (losses) included in net income
|
|
$
|
491
|
|
|
$
|
(67
|
)
|
|
Gains (losses) on investment securities, net
|
|
|
491
|
|
|
(67
|
)
|
|
Income before taxes
|
||
Tax effect
|
|
(132
|
)
|
|
18
|
|
|
Income tax expense
|
||
Net of tax
|
|
$
|
359
|
|
|
$
|
(49
|
)
|
|
Net income
|
|
|
|
|
|
|
|
||||
Accumulated unrealized gains (losses) on derivative instruments
|
|
|
|
|
|
|
||||
Amount reclassified to interest expense on deposits
|
|
$
|
559
|
|
|
$
|
(3,589
|
)
|
|
Interest on deposits
|
Amount reclassified to interest expense on other borrowings
|
|
292
|
|
|
27
|
|
|
Interest on other borrowings
|
||
Amount reclassified to interest expense on junior subordinated debentures
|
|
239
|
|
|
—
|
|
|
Interest on junior subordinated debentures
|
||
|
|
(1,090
|
)
|
|
3,562
|
|
|
Income before taxes
|
||
Tax effect
|
|
291
|
|
|
(950
|
)
|
|
Income tax expense
|
||
Net of tax
|
|
$
|
(799
|
)
|
|
$
|
2,612
|
|
|
Net income
|
|
|
|
Three Months Ended
|
||||||
(In thousands, except per share data)
|
|
|
March 31,
2020 |
|
March 31,
2019 |
||||
Net income
|
|
|
$
|
62,812
|
|
|
$
|
89,146
|
|
Less: Preferred stock dividends
|
|
|
2,050
|
|
|
2,050
|
|
||
Net income applicable to common shares
|
(A)
|
|
$
|
60,762
|
|
|
$
|
87,096
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding
|
(B)
|
|
$
|
57,620
|
|
|
$
|
56,529
|
|
Effect of dilutive potential common shares
|
|
|
|
|
|
||||
Common stock equivalents
|
|
|
575
|
|
|
699
|
|
||
Weighted average common shares and effect of dilutive potential common shares
|
(C)
|
|
$
|
58,195
|
|
|
$
|
57,228
|
|
Net income per common share:
|
|
|
|
|
|
||||
Basic
|
(A/B)
|
|
$
|
1.05
|
|
|
$
|
1.54
|
|
Diluted
|
(A/C)
|
|
$
|
1.04
|
|
|
$
|
1.52
|
|
|
Three months ended
|
|
|
|||||||
(Dollars in thousands, except per share data)
|
March 31,
2020 |
|
March 31,
2019 |
|
Percentage (%) or
Basis Point (bp) Change |
|||||
Net income
|
$
|
62,812
|
|
|
$
|
89,146
|
|
|
(30
|
)%
|
Pre-tax income, excluding provision for credit losses (non-GAAP) (2)
|
140,044
|
|
|
129,269
|
|
|
8
|
|
||
Pre-tax income, excluding provision for credit losses and MSR valuation adjustments (non-GAAP) (2)
|
150,441
|
|
|
138,013
|
|
|
9
|
|
||
Net income per common share—Diluted
|
1.04
|
|
|
1.52
|
|
|
(32
|
)
|
||
Net revenue (1)
|
374,685
|
|
|
343,643
|
|
|
9
|
|
||
Net interest income
|
261,443
|
|
|
261,986
|
|
|
—
|
|
||
Net interest margin
|
3.12
|
%
|
|
3.70
|
%
|
|
(58)bp
|
|
||
Net interest margin - fully taxable-equivalent (non-GAAP) (2)
|
3.14
|
|
|
3.72
|
|
|
(58
|
)
|
||
Net overhead ratio (3)
|
1.33
|
|
|
1.72
|
|
|
(39
|
)
|
||
Return on average assets
|
0.69
|
|
|
1.16
|
|
|
(47
|
)
|
||
Return on average common equity
|
6.82
|
|
|
11.09
|
|
|
(427
|
)
|
||
Return on average tangible common equity (non-GAAP) (2)
|
8.73
|
|
|
14.14
|
|
|
(541
|
)
|
At end of period
|
|
|
|
|
|
|||||
Total assets
|
$
|
38,799,847
|
|
|
$
|
32,358,621
|
|
|
20
|
%
|
Total loans, excluding loans held-for-sale
|
27,807,321
|
|
|
24,214,629
|
|
|
15
|
|
||
Total loans, including loans held-for-sale
|
28,464,255
|
|
|
24,463,186
|
|
|
16
|
|
||
Total deposits
|
31,461,660
|
|
|
26,804,742
|
|
|
17
|
|
||
Total shareholders’ equity
|
3,700,393
|
|
|
3,371,972
|
|
|
10
|
|
||
Book value per common share (2)
|
62.13
|
|
|
57.33
|
|
|
8
|
|
||
Tangible common book value per share (2)
|
50.18
|
|
|
46.38
|
|
|
8
|
|
||
Market price per common share
|
32.86
|
|
|
67.33
|
|
|
(51
|
)
|
||
Allowance for loan and unfunded lending-related commitment losses to total loans
|
0.91
|
%
|
|
0.66
|
%
|
|
25 bp
|
|
(1)
|
Net revenue is net interest income plus non-interest income.
|
(2)
|
See following section titled, “Supplementary 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, annualizing this amount, and dividing by that period’s total average assets. A lower ratio indicates a higher degree of efficiency.
|
|
Three Months Ended
|
||||||
|
March 31,
|
|
March 31,
|
||||
(Dollars and shares in thousands)
|
2020
|
|
2019
|
||||
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio
|
|
|
|
||||
(A) Interest Income (GAAP)
|
$
|
344,067
|
|
|
$
|
333,970
|
|
Taxable-equivalent adjustment:
|
|
|
|
||||
- Loans
|
860
|
|
|
1,034
|
|
||
- Liquidity Management Assets
|
551
|
|
|
565
|
|
||
- Other Earning Assets
|
2
|
|
|
2
|
|
||
(B) Interest Income (non-GAAP)
|
$
|
345,480
|
|
|
$
|
335,571
|
|
(C) Interest Expense (GAAP)
|
82,624
|
|
|
71,984
|
|
||
(D) Net Interest Income (GAAP) (A minus C)
|
261,443
|
|
|
261,986
|
|
||
(E) Net Interest Income, fully taxable-equivalent (non-GAAP) (B minus C)
|
262,856
|
|
|
263,587
|
|
||
Net interest margin (GAAP)
|
3.12
|
%
|
|
3.70
|
%
|
||
Net interest margin, fully taxable-equivalent (non-GAAP)
|
3.14
|
|
|
3.72
|
|
||
(F) Non-interest income
|
$
|
113,242
|
|
|
$
|
81,657
|
|
(G) (Losses) gains on investment securities, net
|
(4,359
|
)
|
|
1,364
|
|
||
(H) Non-interest expense
|
234,641
|
|
|
214,374
|
|
||
Efficiency ratio (H/(D+F-G))
|
61.90
|
%
|
|
62.63
|
%
|
||
Efficiency ratio (non-GAAP) (H/(E+F-G))
|
61.67
|
%
|
|
62.34
|
%
|
||
Reconciliation of Non-GAAP Tangible Common Equity ratio
|
|
|
|
||||
Total shareholders’ equity
|
$
|
3,700,393
|
|
|
$
|
3,371,972
|
|
Less: Non-convertible preferred stock
|
(125,000
|
)
|
|
(125,000
|
)
|
||
Less: Intangible assets
|
(687,626
|
)
|
|
(620,224
|
)
|
||
(I) Total tangible common shareholders’ equity
|
$
|
2,887,767
|
|
|
$
|
2,626,748
|
|
(J) Total assets
|
$
|
38,799,847
|
|
|
$
|
32,358,621
|
|
Less: Intangible assets
|
(687,626
|
)
|
|
(620,224
|
)
|
||
(K) Total tangible assets
|
$
|
38,112,221
|
|
|
$
|
31,738,397
|
|
Common equity to assets ratio (GAAP) (L/J)
|
9.2
|
%
|
|
10.0
|
%
|
||
Tangible common equity ratio (non-GAAP) (I/K)
|
7.6
|
%
|
|
8.3
|
%
|
||
Reconciliation of tangible book value per share
|
|
|
|
||||
Total shareholders’ equity
|
$
|
3,700,393
|
|
|
$
|
3,371,972
|
|
Less: Preferred stock
|
(125,000
|
)
|
|
(125,000
|
)
|
||
(L) Total common equity
|
$
|
3,575,393
|
|
|
$
|
3,246,972
|
|
(M) Actual common shares outstanding
|
57,545
|
|
|
56,639
|
|
||
Book value per common share (L/M)
|
$
|
62.13
|
|
|
$
|
57.33
|
|
Tangible common book value per share (non-GAAP) (I/M)
|
$
|
50.18
|
|
|
$
|
46.38
|
|
Reconciliation of non-GAAP return on average tangible common equity
|
|
|
|
||||
(N) Net income applicable to common shares
|
$
|
60,762
|
|
|
$
|
87,096
|
|
Add: Intangible asset amortization
|
2,863
|
|
|
2,942
|
|
||
Less: Tax effect of intangible asset amortization
|
(799
|
)
|
|
(731
|
)
|
||
After-tax intangible asset amortization
|
2,064
|
|
|
2,211
|
|
||
(O) Tangible net income applicable to common shares (non-GAAP)
|
62,826
|
|
|
89,307
|
|
||
Total average shareholders' equity
|
3,710,169
|
|
|
3,309,078
|
|
||
Less: Average preferred stock
|
(125,000
|
)
|
|
(125,000
|
)
|
||
(P) Total average common shareholders' equity
|
3,585,169
|
|
|
3,184,078
|
|
||
Less: Average intangible assets
|
(690,777
|
)
|
|
(622,240
|
)
|
||
(Q) Total average tangible common shareholders’ equity (non-GAAP)
|
2,894,392
|
|
|
2,561,838
|
|
||
Return on average common equity, annualized (N/P)
|
6.82
|
%
|
|
11.09
|
%
|
||
Return on average tangible common equity, annualized (non-GAAP)
(O/Q)
|
8.73
|
%
|
|
14.14
|
%
|
|
Average Balance
for three months ended,
|
|
Interest
for three months ended,
|
|
Yield/Rate
for three months ended,
|
|||||||||||||||||||||||||||
(Dollars in thousands)
|
Mar 31,
2020 |
|
Dec 31,
2019 |
|
Mar 31,
2019 |
|
Mar 31,
2020 |
|
Dec 31,
2019 |
|
Mar 31,
2019 |
|
Mar 31,
2020 |
|
Dec 31,
2019 |
|
Mar 31,
2019 |
|||||||||||||||
Interest-bearing deposits with banks and cash equivalents(1)
|
$
|
1,418,809
|
|
|
$
|
2,206,251
|
|
|
$
|
897,629
|
|
|
$
|
4,854
|
|
|
$
|
9,361
|
|
|
$
|
5,300
|
|
|
1.38
|
%
|
|
1.68
|
%
|
|
2.39
|
%
|
Investment securities (2)
|
4,780,709
|
|
|
3,909,699
|
|
|
3,630,577
|
|
|
33,018
|
|
|
28,184
|
|
|
28,521
|
|
|
2.78
|
|
|
2.86
|
|
|
3.19
|
|
||||||
FHLB and FRB stock
|
114,829
|
|
|
94,843
|
|
|
94,882
|
|
|
1,577
|
|
|
1,328
|
|
|
1,355
|
|
|
5.52
|
|
|
5.55
|
|
|
5.79
|
|
||||||
Liquidity management assets(3)(8)
|
$
|
6,314,347
|
|
|
$
|
6,210,793
|
|
|
$
|
4,623,088
|
|
|
$
|
39,449
|
|
|
$
|
38,873
|
|
|
$
|
35,176
|
|
|
2.51
|
%
|
|
2.48
|
%
|
|
3.09
|
%
|
Other earning assets(3)(4)(8)
|
19,166
|
|
|
18,353
|
|
|
13,591
|
|
|
167
|
|
|
176
|
|
|
165
|
|
|
3.50
|
|
|
3.83
|
|
|
4.91
|
|
||||||
Mortgage loans held-for-sale
|
403,262
|
|
|
381,878
|
|
|
188,190
|
|
|
3,165
|
|
|
3,201
|
|
|
2,209
|
|
|
3.16
|
|
|
3.33
|
|
|
4.76
|
|
||||||
Loans, net of unearned
income(3)(5)(8)
|
26,936,728
|
|
|
26,137,722
|
|
|
23,880,916
|
|
|
302,699
|
|
|
308,947
|
|
|
298,021
|
|
|
4.52
|
|
|
4.69
|
|
|
5.06
|
|
||||||
Total earning assets(8)
|
$
|
33,673,503
|
|
|
$
|
32,748,746
|
|
|
$
|
28,705,785
|
|
|
$
|
345,480
|
|
|
$
|
351,197
|
|
|
$
|
335,571
|
|
|
4.13
|
%
|
|
4.25
|
%
|
|
4.74
|
%
|
Allowance for loan losses
|
(176,291
|
)
|
|
(167,759
|
)
|
|
(157,782
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and due from banks
|
321,982
|
|
|
316,631
|
|
|
283,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other assets
|
2,806,296
|
|
|
2,747,572
|
|
|
2,385,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
36,625,490
|
|
|
$
|
35,645,190
|
|
|
$
|
31,216,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
NOW and interest bearing demand deposits
|
$
|
3,113,733
|
|
|
$
|
3,016,991
|
|
|
$
|
2,803,338
|
|
|
$
|
3,665
|
|
|
$
|
4,622
|
|
|
$
|
4,613
|
|
|
0.47
|
%
|
|
0.61
|
%
|
|
0.67
|
%
|
Wealth management deposits
|
2,838,719
|
|
|
2,934,292
|
|
|
2,614,035
|
|
|
6,935
|
|
|
7,867
|
|
|
7,000
|
|
|
0.98
|
|
|
1.06
|
|
|
1.09
|
|
||||||
Money market accounts
|
7,990,775
|
|
|
7,647,635
|
|
|
5,915,525
|
|
|
22,363
|
|
|
25,603
|
|
|
19,460
|
|
|
1.13
|
|
|
1.33
|
|
|
1.33
|
|
||||||
Savings accounts
|
3,189,835
|
|
|
3,028,763
|
|
|
2,715,422
|
|
|
5,790
|
|
|
6,145
|
|
|
4,249
|
|
|
0.73
|
|
|
0.80
|
|
|
0.63
|
|
||||||
Time deposits
|
5,526,407
|
|
|
5,682,449
|
|
|
5,267,796
|
|
|
28,682
|
|
|
30,487
|
|
|
25,654
|
|
|
2.09
|
|
|
2.13
|
|
|
1.98
|
|
||||||
Interest-bearing deposits
|
$
|
22,659,469
|
|
|
$
|
22,310,130
|
|
|
$
|
19,316,116
|
|
|
$
|
67,435
|
|
|
$
|
74,724
|
|
|
$
|
60,976
|
|
|
1.20
|
%
|
|
1.33
|
%
|
|
1.29
|
%
|
Federal Home Loan Bank advances
|
951,613
|
|
|
596,594
|
|
|
594,335
|
|
|
3,360
|
|
|
1,461
|
|
|
2,450
|
|
|
1.42
|
|
|
0.97
|
|
|
1.67
|
|
||||||
Other borrowings
|
469,577
|
|
|
415,092
|
|
|
465,571
|
|
|
3,546
|
|
|
3,273
|
|
|
3,633
|
|
|
3.04
|
|
|
3.13
|
|
|
3.16
|
|
||||||
Subordinated notes
|
436,119
|
|
|
436,025
|
|
|
139,217
|
|
|
5,472
|
|
|
5,504
|
|
|
1,775
|
|
|
5.02
|
|
|
5.05
|
|
|
5.10
|
|
||||||
Junior subordinated debentures
|
253,566
|
|
|
253,566
|
|
|
253,566
|
|
|
2,811
|
|
|
2,890
|
|
|
3,150
|
|
|
4.39
|
|
|
4.46
|
|
|
4.97
|
|
||||||
Total interest-bearing liabilities
|
$
|
24,770,344
|
|
|
$
|
24,011,407
|
|
|
$
|
20,768,805
|
|
|
$
|
82,624
|
|
|
$
|
87,852
|
|
|
$
|
71,984
|
|
|
1.34
|
%
|
|
1.45
|
%
|
|
1.40
|
%
|
Non-interest bearing deposits
|
7,235,177
|
|
|
7,128,166
|
|
|
6,444,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other liabilities
|
909,800
|
|
|
883,433
|
|
|
693,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity
|
3,710,169
|
|
|
3,622,184
|
|
|
3,309,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders’ equity
|
$
|
36,625,490
|
|
|
$
|
35,645,190
|
|
|
$
|
31,216,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate spread(6)(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
2.79
|
%
|
|
2.80
|
%
|
|
3.34
|
%
|
||||||||||||
Less: Fully tax-equivalent adjustment
|
|
|
|
|
|
|
(1,413
|
)
|
|
(1,466
|
)
|
|
(1,601
|
)
|
|
(0.02
|
)
|
|
(0.02
|
)
|
|
(0.02
|
)
|
|||||||||
Net free funds/contribution(7)
|
$
|
8,903,159
|
|
|
$
|
8,737,339
|
|
|
$
|
7,936,980
|
|
|
|
|
|
|
|
|
0.35
|
|
|
0.39
|
|
|
0.38
|
|
||||||
Net interest income/ margin (GAAP)(8)
|
|
|
|
|
|
|
$
|
261,443
|
|
|
$
|
261,879
|
|
|
$
|
261,986
|
|
|
3.12
|
%
|
|
3.17
|
%
|
|
3.70
|
%
|
||||||
Fully taxable-equivalent adjustment
|
|
|
|
|
|
|
1,413
|
|
|
1,466
|
|
|
1,601
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|||||||||
Net interest income/margin, fully taxable-equivalent (non-GAAP)(8)
|
|
|
|
|
|
|
$
|
262,856
|
|
|
$
|
263,345
|
|
|
$
|
263,587
|
|
|
3.14
|
%
|
|
3.19
|
%
|
|
3.72
|
%
|
(1)
|
Includes interest-bearing deposits with banks, federal funds sold and securities purchased under resale agreements.
|
(2)
|
Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
|
(3)
|
Interest income on tax-advantaged loans, trading securities and investment securities reflects a tax-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period. The total adjustments for the three months ended March 31, 2020, December 31, 2019 and March 31, 2019 were $1.4 million, $1.5 million and $1.6 million, respectively.
|
(4)
|
Other earning assets include brokerage customer receivables and trading account securities.
|
(5)
|
Loans, net of unearned income, include non-accrual loans.
|
(6)
|
Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
|
(7)
|
Net free funds are 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.
|
(8)
|
See “Supplemental Financial Measures/Ratios” for additional information on this performance ratio.
|
|
First Quarter
of 2020
Compared to
Fourth Quarter
of 2019
|
|
First Quarter
of 2020
Compared to
First Quarter
of 2019
|
||||
(In thousands)
|
|
||||||
Net interest income (GAAP) for comparative period
|
$
|
261,879
|
|
|
$
|
261,986
|
|
Change due to mix and growth of earning assets and interest-bearing liabilities (volume)
|
5,504
|
|
|
34,620
|
|
||
Change due to interest rate fluctuations (rate)
|
(3,062
|
)
|
|
(38,042
|
)
|
||
Change due to number of days in each period
|
(2,878
|
)
|
|
2,879
|
|
||
Net interest income (GAAP) for the period ended March 31, 2020
|
$
|
261,443
|
|
|
$
|
261,443
|
|
Fully taxable-equivalent adjustment
|
1,413
|
|
|
1,413
|
|
||
Net interest income, fully taxable-equivalent (non-GAAP)
|
$
|
262,856
|
|
|
$
|
262,856
|
|
|
Three Months Ended
|
|
$
Change
|
|
%
Change
|
|||||||||
(Dollars in thousands)
|
March 31,
2020 |
|
March 31,
2019 |
|
|
|||||||||
Brokerage
|
$
|
5,281
|
|
|
$
|
4,516
|
|
|
$
|
765
|
|
|
17
|
%
|
Trust and asset management
|
20,660
|
|
|
19,461
|
|
|
1,199
|
|
|
6
|
|
|||
Total wealth management
|
25,941
|
|
|
23,977
|
|
|
1,964
|
|
|
8
|
|
|||
Mortgage banking
|
48,326
|
|
|
18,158
|
|
|
30,168
|
|
|
NM
|
|
|||
Service charges on deposit accounts
|
11,265
|
|
|
8,848
|
|
|
2,417
|
|
|
27
|
|
|||
(Losses) gains on investment securities, net
|
(4,359
|
)
|
|
1,364
|
|
|
(5,723
|
)
|
|
NM
|
|
|||
Fees from covered call options
|
2,292
|
|
|
1,784
|
|
|
508
|
|
|
28
|
|
|||
Trading (losses) gains, net
|
(451
|
)
|
|
(171
|
)
|
|
(280
|
)
|
|
NM
|
|
|||
Operating lease income, net
|
11,984
|
|
|
10,796
|
|
|
1,188
|
|
|
11
|
|
|||
Other:
|
|
|
|
|
|
|
|
|||||||
Interest rate swap fees
|
6,066
|
|
|
2,831
|
|
|
3,235
|
|
|
NM
|
|
|||
BOLI
|
(1,284
|
)
|
|
1,591
|
|
|
(2,875
|
)
|
|
NM
|
|
|||
Administrative services
|
1,112
|
|
|
1,030
|
|
|
82
|
|
|
8
|
|
|||
Foreign currency remeasurement (losses) gains
|
(151
|
)
|
|
464
|
|
|
(615
|
)
|
|
NM
|
|
|||
Early pay-offs of capital leases
|
74
|
|
|
5
|
|
|
69
|
|
|
NM
|
|
|||
Miscellaneous
|
12,427
|
|
|
10,980
|
|
|
1,447
|
|
|
13
|
|
|||
Total Other
|
18,244
|
|
|
16,901
|
|
|
1,343
|
|
|
8
|
|
|||
Total Non-interest Income
|
$
|
113,242
|
|
|
$
|
81,657
|
|
|
$
|
31,585
|
|
|
39
|
%
|
|
|
|
Three Months Ended
|
||||||
(Dollars in thousands)
|
|
March 31,
2020 |
|
March 31,
2019 |
||||
Originations:
|
|
|
|
|
||||
Retail originations
|
|
$
|
773,144
|
|
|
$
|
365,602
|
|
Correspondent originations
|
|
—
|
|
|
148,100
|
|
||
Veterans First originations
|
|
442,957
|
|
|
164,762
|
|
||
Total originations for sale (A)
|
|
$
|
1,216,101
|
|
|
$
|
678,464
|
|
Originations for investment
|
|
73,727
|
|
|
93,689
|
|
||
Total originations
|
|
$
|
1,289,828
|
|
|
$
|
772,153
|
|
|
|
|
|
|
||||
Purchases as a percentage of originations for sale
|
|
37
|
%
|
|
67
|
%
|
||
Refinances as a percentage of originations for sale
|
|
63
|
|
|
33
|
|
||
Total
|
|
100
|
%
|
|
100
|
%
|
||
|
|
|
|
|
||||
Mandatory commitments to fund originations for sale(1)
|
|
$
|
1,375,162
|
|
|
$
|
285,917
|
|
|
|
|
|
|
||||
Production Margin:
|
|
|
|
|
||||
Production revenue (B) (2)
|
|
$
|
31,964
|
|
|
$
|
16,942
|
|
Production margin (B/A)
|
|
2.63
|
%
|
|
2.50
|
%
|
||
|
|
|
|
|
||||
Mortgage Servicing:
|
|
|
|
|
||||
Loans serviced for others (C)
|
|
$
|
8,314,634
|
|
|
$
|
7,014,269
|
|
MSRs, at fair value (D)
|
|
73,504
|
|
|
71,022
|
|
||
Percentage of MSRs to loans serviced for others (D/C)
|
|
0.88
|
%
|
|
1.01
|
%
|
||
Servicing income
|
|
$
|
7,031
|
|
|
$
|
5,460
|
|
|
|
|
|
|
||||
Components of Mortgage Banking Revenue:
|
|
|
|
|
||||
MSR current period capitalization
|
|
9,447
|
|
|
6,580
|
|
||
MSR collection of expected cash flow - paydowns
|
|
(547
|
)
|
|
(505
|
)
|
||
MSR collection of expected cash flow - payoffs
|
|
(6,477
|
)
|
|
(1,492
|
)
|
||
Valuation:
|
|
|
|
|
||||
MSR changes in fair value model assumptions
|
|
(14,557
|
)
|
|
(8,744
|
)
|
||
Gain on derivative contract held as an economic hedge, net
|
|
4,160
|
|
|
—
|
|
||
MSR valuation adjustment, net of gain on derivative contract held as an economic hedge
|
|
(10,397
|
)
|
|
(8,744
|
)
|
(1)
|
Certain volume adjusted for the estimated pull-through rate of the loan, which represents the Company’s best estimate of the likelihood that a committed loan will ultimately fund.
|
(2)
|
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 the fair value of servicing rights. Excludes changes to the mortgage recourse obligation, derivative income from interest rate lock commitments and other non-production revenue.
|
|
Three months ended
|
|
$
Change
|
|
%
Change
|
|||||||||
(Dollars in thousands)
|
March 31,
2020 |
|
March 31,
2019 |
|
|
|||||||||
Salaries and employee benefits:
|
|
|
|
|
|
|
|
|||||||
Salaries
|
$
|
81,286
|
|
|
$
|
74,037
|
|
|
$
|
7,249
|
|
|
10
|
%
|
Commissions and incentive compensation
|
31,575
|
|
|
31,599
|
|
|
(24
|
)
|
|
0
|
|
|||
Benefits
|
23,901
|
|
|
20,087
|
|
|
3,814
|
|
|
19
|
|
|||
Total salaries and employee benefits
|
136,762
|
|
|
125,723
|
|
|
11,039
|
|
|
9
|
|
|||
Equipment
|
14,834
|
|
|
11,770
|
|
|
3,064
|
|
|
26
|
|
|||
Operating lease equipment depreciation
|
9,260
|
|
|
8,319
|
|
|
941
|
|
|
11
|
|
|||
Occupancy, net
|
17,547
|
|
|
16,245
|
|
|
1,302
|
|
|
8
|
|
|||
Data processing
|
8,373
|
|
|
7,525
|
|
|
848
|
|
|
11
|
|
|||
Advertising and marketing
|
10,862
|
|
|
9,858
|
|
|
1,004
|
|
|
10
|
|
|||
Professional fees
|
6,721
|
|
|
5,556
|
|
|
1,165
|
|
|
21
|
|
|||
Amortization of other intangible assets
|
2,863
|
|
|
2,942
|
|
|
(79
|
)
|
|
(3
|
)
|
|||
FDIC insurance
|
4,135
|
|
|
3,576
|
|
|
559
|
|
|
16
|
|
|||
OREO expense, net
|
(876
|
)
|
|
632
|
|
|
(1,508
|
)
|
|
NM
|
|
|||
Other:
|
|
|
|
|
|
|
|
|||||||
Commissions—3rd party brokers
|
865
|
|
|
718
|
|
|
147
|
|
|
20
|
|
|||
Postage
|
1,949
|
|
|
2,450
|
|
|
(501
|
)
|
|
(20
|
)
|
|||
Miscellaneous
|
21,346
|
|
|
19,060
|
|
|
2,286
|
|
|
12
|
|
|||
Total other
|
24,160
|
|
|
22,228
|
|
|
1,932
|
|
|
9
|
|
|||
Total Non-interest Expense
|
$
|
234,641
|
|
|
$
|
214,374
|
|
|
$
|
20,267
|
|
|
9
|
%
|
|
|
Three Months Ended
|
|||||||||||||||||||
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2019
|
|||||||||||||||
(Dollars in thousands)
|
Balance
|
|
Percent
|
|
Balance
|
|
Percent
|
|
Balance
|
|
Percent
|
|||||||||
Mortgage loans held-for-sale
|
$
|
403,262
|
|
|
1
|
%
|
|
$
|
381,878
|
|
|
1
|
%
|
|
$
|
188,190
|
|
|
1
|
%
|
Loans, net of unearned income
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
$
|
8,414,315
|
|
|
25
|
%
|
|
$
|
8,126,776
|
|
|
25
|
%
|
|
$
|
7,854,451
|
|
|
27
|
%
|
Commercial real estate
|
8,125,827
|
|
|
24
|
|
|
7,819,665
|
|
|
24
|
|
|
6,963,852
|
|
|
24
|
|
|||
Home equity
|
499,369
|
|
|
1
|
|
|
520,877
|
|
|
2
|
|
|
540,121
|
|
|
2
|
|
|||
Residential real estate
|
1,243,031
|
|
|
4
|
|
|
1,188,477
|
|
|
4
|
|
|
938,364
|
|
|
3
|
|
|||
Premium finance receivables
|
8,591,980
|
|
|
26
|
|
|
8,360,630
|
|
|
25
|
|
|
7,468,706
|
|
|
26
|
|
|||
Other loans
|
62,206
|
|
|
—
|
|
|
121,297
|
|
|
—
|
|
|
115,422
|
|
|
1
|
|
|||
Total average loans (1)
|
$
|
26,936,728
|
|
|
80
|
%
|
|
$
|
26,137,722
|
|
|
80
|
%
|
|
$
|
23,880,916
|
|
|
83
|
%
|
Liquidity management assets (2)
|
6,314,347
|
|
|
19
|
|
|
6,210,793
|
|
|
19
|
|
|
4,623,088
|
|
|
16
|
|
|||
Other earning assets (3)
|
19,166
|
|
|
—
|
|
|
18,353
|
|
|
—
|
|
|
13,591
|
|
|
—
|
|
|||
Total average earning assets
|
$
|
33,673,503
|
|
|
100
|
%
|
|
$
|
32,748,746
|
|
|
100
|
%
|
|
$
|
28,705,785
|
|
|
100
|
%
|
Total average assets
|
$
|
36,625,490
|
|
|
|
|
$
|
35,645,190
|
|
|
|
|
$
|
31,216,171
|
|
|
|
|||
Total average earning assets to total average assets
|
|
|
92
|
%
|
|
|
|
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.
|
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2019
|
|||||||||||||||
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|||||||||
(In thousands)
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|||||||||
Commercial
|
$
|
9,025,886
|
|
|
32
|
%
|
|
$
|
8,285,920
|
|
|
31
|
%
|
|
$
|
7,994,191
|
|
|
33
|
%
|
Commercial real estate
|
8,185,531
|
|
|
29
|
|
|
8,020,276
|
|
|
30
|
|
|
6,973,505
|
|
|
29
|
|
|||
Home equity
|
494,655
|
|
|
2
|
|
|
513,066
|
|
|
2
|
|
|
528,448
|
|
|
2
|
|
|||
Residential real estate
|
1,377,389
|
|
|
5
|
|
|
1,354,221
|
|
|
5
|
|
|
1,053,524
|
|
|
4
|
|
|||
Premium finance receivables—commercial
|
3,465,055
|
|
|
13
|
|
|
3,442,027
|
|
|
13
|
|
|
2,988,788
|
|
|
12
|
|
|||
Premium finance receivables—life insurance
|
5,221,639
|
|
|
19
|
|
|
5,074,602
|
|
|
19
|
|
|
4,555,369
|
|
|
19
|
|
|||
Consumer and other
|
37,166
|
|
|
0
|
|
|
110,178
|
|
|
0
|
|
|
120,804
|
|
|
1
|
|
|||
Total loans, net of unearned income
|
$
|
27,807,321
|
|
|
100
|
%
|
|
$
|
26,800,290
|
|
|
100
|
%
|
|
$
|
24,214,629
|
|
|
100
|
%
|
|
As of March 31, 2020
|
|
As of March 31, 2019
|
||||||||||||||||||
|
|
|
|
|
Allowance
|
|
|
|
|
|
Allowance
|
||||||||||
|
|
|
% of
|
|
For Credit
|
|
|
|
% of
|
|
For Credit
|
||||||||||
|
|
Total
|
|
Losses
|
|
|
|
Total
|
|
Losses
|
|||||||||||
(Dollars in thousands)
|
Balance
|
|
Balance
|
|
Allocation
|
|
Balance
|
|
Balance
|
|
Allocation
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, industrial, and other
|
$
|
9,025,886
|
|
|
52.4
|
%
|
|
$
|
107,346
|
|
|
$
|
7,994,191
|
|
|
53.4
|
%
|
|
$
|
74,638
|
|
Commercial Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and development
|
1,301,353
|
|
|
7.6
|
|
|
$
|
33,862
|
|
|
956,694
|
|
|
6.4
|
|
|
13,336
|
|
|||
Non-construction
|
6,884,178
|
|
|
40.0
|
|
|
78,934
|
|
|
6,016,811
|
|
|
40.2
|
|
|
45,924
|
|
||||
Total commercial real estate
|
$
|
8,185,531
|
|
|
47.6
|
%
|
|
$
|
112,796
|
|
|
$
|
6,973,505
|
|
|
46.6
|
%
|
|
$
|
59,260
|
|
Total commercial and commercial real estate
|
$
|
17,211,417
|
|
|
100.0
|
%
|
|
$
|
220,142
|
|
|
$
|
14,967,696
|
|
|
100.0
|
%
|
|
$
|
133,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate - collateral location by state:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Illinois
|
$
|
6,171,606
|
|
|
75.4
|
%
|
|
|
|
$
|
5,331,784
|
|
|
76.5
|
%
|
|
|
||||
Wisconsin
|
793,145
|
|
|
9.7
|
|
|
|
|
758,097
|
|
|
10.9
|
|
|
|
||||||
Total primary markets
|
$
|
6,964,751
|
|
|
85.1
|
%
|
|
|
|
$
|
6,089,881
|
|
|
87.4
|
%
|
|
|
||||
Indiana
|
249,680
|
|
|
3.1
|
|
|
|
|
175,350
|
|
|
2.5
|
|
|
|
||||||
Florida
|
126,786
|
|
|
1.5
|
|
|
|
|
55,528
|
|
|
0.8
|
|
|
|
||||||
Arizona
|
72,214
|
|
|
0.9
|
|
|
|
|
61,375
|
|
|
0.9
|
|
|
|
||||||
California
|
63,883
|
|
|
0.8
|
|
|
|
|
67,545
|
|
|
1.0
|
|
|
|
||||||
Other
|
708,217
|
|
|
8.6
|
|
|
|
|
523,826
|
|
|
7.4
|
|
|
|
||||||
Total commercial real estate
|
$
|
8,185,531
|
|
|
100.0
|
%
|
|
|
|
$
|
6,973,505
|
|
|
100.0
|
%
|
|
|
As of March 31, 2020
|
One year or less
|
|
From one to five years
|
|
Over five years
|
|
|
||||||||
(In thousands)
|
|
|
|
Total
|
|||||||||||
Commercial
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
$
|
295,238
|
|
|
$
|
1,747,321
|
|
|
$
|
808,067
|
|
|
$
|
2,850,626
|
|
Variable rate
|
6,153,781
|
|
|
21,347
|
|
|
132
|
|
|
6,175,260
|
|
||||
Total commercial
|
$
|
6,449,019
|
|
|
$
|
1,768,668
|
|
|
$
|
808,199
|
|
|
$
|
9,025,886
|
|
Commercial real estate
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
518,259
|
|
|
2,242,979
|
|
|
434,901
|
|
|
3,196,139
|
|
||||
Variable rate
|
4,952,584
|
|
|
36,808
|
|
|
—
|
|
|
4,989,392
|
|
||||
Total commercial real estate
|
$
|
5,470,843
|
|
|
$
|
2,279,787
|
|
|
$
|
434,901
|
|
|
$
|
8,185,531
|
|
Home equity
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
24,813
|
|
|
4,070
|
|
|
570
|
|
|
29,453
|
|
||||
Variable rate
|
465,202
|
|
|
—
|
|
|
—
|
|
|
465,202
|
|
||||
Total home equity
|
$
|
490,015
|
|
|
$
|
4,070
|
|
|
$
|
570
|
|
|
$
|
494,655
|
|
Residential real estate
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
40,814
|
|
|
15,607
|
|
|
398,189
|
|
|
454,610
|
|
||||
Variable rate
|
90,205
|
|
|
338,495
|
|
|
494,079
|
|
|
922,779
|
|
||||
Total residential real estate
|
$
|
131,019
|
|
|
$
|
354,102
|
|
|
$
|
892,268
|
|
|
$
|
1,377,389
|
|
Premium finance receivables - commercial
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
3,378,077
|
|
|
86,978
|
|
|
—
|
|
|
3,465,055
|
|
||||
Variable rate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total premium finance receivables - commercial
|
$
|
3,378,077
|
|
|
$
|
86,978
|
|
|
$
|
—
|
|
|
$
|
3,465,055
|
|
Premium finance receivables - life insurance
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
16,164
|
|
|
142,886
|
|
|
23,785
|
|
|
182,835
|
|
||||
Variable rate
|
5,038,804
|
|
|
—
|
|
|
—
|
|
|
5,038,804
|
|
||||
Total premium finance receivables - life insurance
|
$
|
5,054,968
|
|
|
$
|
142,886
|
|
|
$
|
23,785
|
|
|
$
|
5,221,639
|
|
Consumer and other
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
8,478
|
|
|
8,304
|
|
|
1,669
|
|
|
18,451
|
|
||||
Variable rate
|
18,715
|
|
|
—
|
|
|
—
|
|
|
18,715
|
|
||||
Total consumer and other
|
$
|
27,193
|
|
|
$
|
8,304
|
|
|
$
|
1,669
|
|
|
$
|
37,166
|
|
Total per category
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
4,281,843
|
|
|
4,248,145
|
|
|
1,667,181
|
|
|
10,197,169
|
|
||||
Variable rate
|
16,719,291
|
|
|
396,650
|
|
|
494,211
|
|
|
17,610,152
|
|
||||
Total loans, net of unearned income
|
$
|
21,001,134
|
|
|
$
|
4,644,795
|
|
|
$
|
2,161,392
|
|
|
$
|
27,807,321
|
|
Variable Rate Loan Pricing by Index:
|
|
|
|
|
|
|
|
||||||||
Prime
|
|
|
|
|
|
|
$
|
2,431,566
|
|
||||||
One- month LIBOR
|
|
|
|
|
|
|
8,888,190
|
|
|||||||
Three- month LIBOR
|
|
|
|
|
|
|
332,833
|
|
|||||||
Twelve- month LIBOR
|
|
|
|
|
|
|
5,696,796
|
|
|||||||
Other
|
|
|
|
|
|
|
260,767
|
|
|||||||
Total variable rate
|
|
|
|
|
|
|
$
|
17,610,152
|
|
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 discernable 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.)
|
(Dollars in thousands)
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
Loans past due greater than 90 days and still accruing (1):
|
|
|
|
|
|
||||||
Commercial
|
$
|
1,241
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial real estate
|
516
|
|
|
—
|
|
|
—
|
|
|||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
605
|
|
|
—
|
|
|
30
|
|
|||
Premium finance receivables—commercial
|
16,505
|
|
|
11,517
|
|
|
6,558
|
|
|||
Premium finance receivables—life insurance
|
—
|
|
|
—
|
|
|
168
|
|
|||
Consumer and other
|
78
|
|
|
163
|
|
|
218
|
|
|||
Total loans past due greater than 90 days and still accruing
|
18,945
|
|
|
11,680
|
|
|
6,974
|
|
|||
Non-accrual loans (2):
|
|
|
|
|
|
||||||
Commercial
|
49,916
|
|
|
37,224
|
|
|
55,792
|
|
|||
Commercial real estate
|
62,830
|
|
|
26,113
|
|
|
15,933
|
|
|||
Home equity
|
7,243
|
|
|
7,363
|
|
|
7,885
|
|
|||
Residential real estate
|
18,965
|
|
|
13,797
|
|
|
15,879
|
|
|||
Premium finance receivables—commercial
|
21,058
|
|
|
20,590
|
|
|
14,797
|
|
|||
Premium finance receivables—life insurance
|
—
|
|
|
590
|
|
|
—
|
|
|||
Consumer and other
|
403
|
|
|
231
|
|
|
326
|
|
|||
Total non-accrual loans
|
160,415
|
|
|
105,908
|
|
|
110,612
|
|
|||
Total non-performing loans(3):
|
|
|
|
|
|
||||||
Commercial
|
51,157
|
|
|
37,224
|
|
|
55,792
|
|
|||
Commercial real estate
|
63,346
|
|
|
26,113
|
|
|
15,933
|
|
|||
Home equity
|
7,243
|
|
|
7,363
|
|
|
7,885
|
|
|||
Residential real estate
|
19,570
|
|
|
13,797
|
|
|
15,909
|
|
|||
Premium finance receivables—commercial
|
37,563
|
|
|
32,107
|
|
|
21,355
|
|
|||
Premium finance receivables—life insurance
|
—
|
|
|
590
|
|
|
168
|
|
|||
Consumer and other
|
481
|
|
|
394
|
|
|
544
|
|
|||
Total non-performing loans
|
$
|
179,360
|
|
|
$
|
117,588
|
|
|
$
|
117,586
|
|
Other real estate owned
|
2,701
|
|
|
5,208
|
|
|
9,154
|
|
|||
Other real estate owned—from acquisitions
|
8,325
|
|
|
9,963
|
|
|
12,366
|
|
|||
Other repossessed assets
|
—
|
|
|
4
|
|
|
270
|
|
|||
Total non-performing assets
|
$
|
190,386
|
|
|
$
|
132,763
|
|
|
$
|
139,376
|
|
Accruing TDRs not included within non-performing assets
|
47,049
|
|
|
36,725
|
|
|
48,305
|
|
|||
Total non-performing loans by category as a percent of its own respective category’s period-end balance:
|
|
|
|
|
|
||||||
Commercial
|
0.57
|
%
|
|
0.45
|
%
|
|
0.70
|
%
|
|||
Commercial real estate
|
0.77
|
|
|
0.33
|
|
|
0.23
|
|
|||
Home equity
|
1.46
|
|
|
1.44
|
|
|
1.49
|
|
|||
Residential real estate
|
1.42
|
|
|
1.02
|
|
|
1.51
|
|
|||
Premium finance receivables—commercial
|
1.08
|
|
|
0.93
|
|
|
0.71
|
|
|||
Premium finance receivables—life insurance
|
0.00
|
|
|
0.01
|
|
|
0.00
|
|
|||
Consumer and other
|
1.29
|
|
|
0.36
|
|
|
0.45
|
|
|||
Total non-performing loans
|
0.65
|
%
|
|
0.44
|
%
|
|
0.49
|
%
|
|||
Total non-performing assets, as a percentage of total assets
|
0.49
|
%
|
|
0.36
|
%
|
|
0.43
|
%
|
|||
Allowance for loan losses as a percentage of total non-performing loans
|
120.46
|
%
|
|
133.37
|
%
|
|
134.55
|
%
|
(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 $36.6 million, $27.1 million, and $40.1 million as of March 31, 2020, December 31, 2019, and March 31, 2019, respectively.
|
(3)
|
Includes PCD loans. As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified PCI loans to PCD loans effective January 1, 2020.
|
|
Nonaccrual
|
|
90+ days
and still accruing |
|
60-89
days past due |
|
30-59
days past due |
|
Current
|
|
Total Loans
|
||||||||||||
As of March 31, 2020
|
|||||||||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||||
Loan Balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial, industrial and other
|
$
|
49,916
|
|
|
$
|
1,241
|
|
|
$
|
8,873
|
|
|
$
|
86,129
|
|
|
$
|
8,879,727
|
|
|
$
|
9,025,886
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and development
|
7,422
|
|
|
147
|
|
|
1,859
|
|
|
16,938
|
|
|
1,274,987
|
|
|
1,301,353
|
|
||||||
Non-construction
|
55,408
|
|
|
369
|
|
|
8,353
|
|
|
58,130
|
|
|
6,761,918
|
|
|
6,884,178
|
|
||||||
Home equity
|
7,243
|
|
|
—
|
|
|
214
|
|
|
2,096
|
|
|
485,102
|
|
|
494,655
|
|
||||||
Residential real estate
|
18,965
|
|
|
605
|
|
|
345
|
|
|
28,983
|
|
|
1,328,491
|
|
|
1,377,389
|
|
||||||
Premium finance receivables
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial insurance loans
|
21,058
|
|
|
16,505
|
|
|
10,327
|
|
|
32,811
|
|
|
3,384,354
|
|
|
3,465,055
|
|
||||||
Life insurance loans
|
—
|
|
|
—
|
|
|
2,403
|
|
|
37,374
|
|
|
5,181,862
|
|
|
5,221,639
|
|
||||||
Consumer and other
|
403
|
|
|
78
|
|
|
625
|
|
|
207
|
|
|
35,853
|
|
|
37,166
|
|
||||||
Total loans, net of unearned income
|
$
|
160,415
|
|
|
$
|
18,945
|
|
|
$
|
32,999
|
|
|
$
|
262,668
|
|
|
$
|
27,332,294
|
|
|
$
|
27,807,321
|
|
|
Nonaccrual
|
|
90+ days
and still accruing |
|
60-89
days past due |
|
30-59
days past due |
|
Current
|
|
Total Loans
|
||||||||||||
As of December 31, 2019
|
|||||||||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||||
Loan Balances:(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial, industrial and other
|
$
|
37,224
|
|
|
$
|
1,855
|
|
|
$
|
3,275
|
|
|
$
|
77,324
|
|
|
$
|
8,166,242
|
|
|
$
|
8,285,920
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and development
|
2,112
|
|
|
3,514
|
|
|
5,292
|
|
|
48,964
|
|
|
1,223,567
|
|
|
1,283,449
|
|
||||||
Non-construction
|
24,001
|
|
|
11,432
|
|
|
26,254
|
|
|
48,603
|
|
|
6,626,537
|
|
|
6,736,827
|
|
||||||
Home equity
|
7,363
|
|
|
—
|
|
|
454
|
|
|
3,533
|
|
|
501,716
|
|
|
513,066
|
|
||||||
Residential real estate
|
13,797
|
|
|
5,771
|
|
|
3,089
|
|
|
18,041
|
|
|
1,313,523
|
|
|
1,354,221
|
|
||||||
Premium finance receivables
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial insurance loans
|
20,590
|
|
|
11,517
|
|
|
12,119
|
|
|
18,783
|
|
|
3,379,018
|
|
|
3,442,027
|
|
||||||
Life insurance loans
|
590
|
|
|
—
|
|
|
—
|
|
|
32,559
|
|
|
5,041,453
|
|
|
5,074,602
|
|
||||||
Consumer and other
|
231
|
|
|
287
|
|
|
40
|
|
|
344
|
|
|
109,276
|
|
|
110,178
|
|
||||||
Total loans, net of unearned income
|
$
|
105,908
|
|
|
$
|
34,376
|
|
|
$
|
50,523
|
|
|
$
|
248,151
|
|
|
$
|
26,361,332
|
|
|
$
|
26,800,290
|
|
(1)
|
Includes PCD loans and, for periods prior to the adoption of ASU 2016-13, purchased credit impaired ("PCI") loans. PCI loans represented loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings disclosed in comparative periods are based upon contractually required payments. As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified PCI loans to PCD loans effective January 1, 2020.
|
|
Three Months Ended
|
||||||
|
March 31,
|
|
March 31,
|
||||
(In thousands)
|
2020
|
|
2019
|
||||
Balance at beginning of period
|
$
|
117,588
|
|
|
$
|
113,234
|
|
Additions, net
|
32,195
|
|
|
24,030
|
|
||
Additions from the adoption of ASU 2016-13
|
37,285
|
|
|
—
|
|
||
Return to performing status
|
(486
|
)
|
|
(14,077
|
)
|
||
Payments received
|
(7,949
|
)
|
|
(4,024
|
)
|
||
Transfer to OREO and other repossessed assets
|
(1,297
|
)
|
|
(82
|
)
|
||
Charge-offs
|
(2,551
|
)
|
|
(3,992
|
)
|
||
Net change for niche loans (1)
|
4,575
|
|
|
2,497
|
|
||
Balance at end of period
|
$
|
179,360
|
|
|
$
|
117,586
|
|
(1)
|
This includes activity for premium finance receivables and indirect consumer loans.
|
|
Three Months Ended
|
||||||
(Dollars in thousands)
|
March 31,
2020 |
|
March 31,
2019 |
||||
Allowance for credit losses at beginning of period
|
$
|
158,461
|
|
|
$
|
154,164
|
|
Cumulative effect adjustment from the adoption of ASU 2016-13
|
47,344
|
|
|
—
|
|
||
Provision for credit losses
|
52,965
|
|
|
10,624
|
|
||
Other adjustments
|
(73
|
)
|
|
(27
|
)
|
||
Charge-offs:
|
|
|
|
||||
Commercial
|
2,153
|
|
|
503
|
|
||
Commercial real estate
|
570
|
|
|
3,734
|
|
||
Home equity
|
1,001
|
|
|
88
|
|
||
Residential real estate
|
401
|
|
|
3
|
|
||
Premium finance receivables
|
3,184
|
|
|
2,210
|
|
||
Consumer and other
|
128
|
|
|
102
|
|
||
Total charge-offs
|
7,437
|
|
|
6,640
|
|
||
Recoveries:
|
|
|
|
||||
Commercial
|
384
|
|
|
318
|
|
||
Commercial real estate
|
263
|
|
|
480
|
|
||
Home equity
|
294
|
|
|
62
|
|
||
Residential real estate
|
60
|
|
|
29
|
|
||
Premium finance receivables
|
1,110
|
|
|
556
|
|
||
Consumer and other
|
41
|
|
|
56
|
|
||
Total recoveries
|
2,152
|
|
|
1,501
|
|
||
Net charge-offs
|
(5,285
|
)
|
|
(5,139
|
)
|
||
Allowance for credit losses at period end
|
$
|
253,412
|
|
|
$
|
159,622
|
|
Annualized net charge-offs by category as a percentage of its own respective category’s average:
|
|
|
|
||||
Commercial
|
0.08
|
%
|
|
0.01
|
%
|
||
Commercial real estate
|
0.02
|
|
|
0.19
|
|
||
Home equity
|
0.57
|
|
|
0.02
|
|
||
Residential real estate
|
0.11
|
|
|
(0.01
|
)
|
||
Premium finance receivables
|
0.10
|
|
|
0.23
|
|
||
Consumer and other
|
0.56
|
|
|
0.16
|
|
||
Total loans, net of unearned income
|
0.08
|
%
|
|
0.09
|
%
|
||
Net charge-offs as a percentage of the provision for credit losses
|
9.98
|
%
|
|
48.37
|
%
|
||
Loans at period-end
|
$
|
27,807,321
|
|
|
$
|
24,214,629
|
|
Allowance for loan losses as a percentage of loans at period end
|
0.78
|
%
|
|
0.65
|
%
|
||
Allowance for loan and unfunded loan-related commitment losses as a percentage of loans at period end
|
0.91
|
%
|
|
0.66
|
%
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
(In thousands)
|
2020
|
|
2019
|
|
2019
|
||||||
Accruing TDRs:
|
|
|
|
|
|
||||||
Commercial
|
$
|
6,500
|
|
|
$
|
4,905
|
|
|
$
|
19,650
|
|
Commercial real estate
|
18,043
|
|
|
9,754
|
|
|
14,123
|
|
|||
Residential real estate and other
|
22,506
|
|
|
22,066
|
|
|
14,532
|
|
|||
Total accruing TDRs
|
$
|
47,049
|
|
|
$
|
36,725
|
|
|
$
|
48,305
|
|
Non-accrual TDRs: (1)
|
|
|
|
|
|
||||||
Commercial
|
$
|
17,206
|
|
|
$
|
13,834
|
|
|
$
|
34,390
|
|
Commercial real estate
|
14,420
|
|
|
7,119
|
|
|
1,517
|
|
|||
Residential real estate and other
|
4,962
|
|
|
6,158
|
|
|
4,150
|
|
|||
Total non-accrual TDRs
|
$
|
36,588
|
|
|
$
|
27,111
|
|
|
$
|
40,057
|
|
Total TDRs:
|
|
|
|
|
|
||||||
Commercial
|
$
|
23,706
|
|
|
$
|
18,739
|
|
|
$
|
54,040
|
|
Commercial real estate
|
32,463
|
|
|
16,873
|
|
|
15,640
|
|
|||
Residential real estate and other
|
27,468
|
|
|
28,224
|
|
|
18,682
|
|
|||
Total TDRs
|
$
|
83,637
|
|
|
$
|
63,836
|
|
|
$
|
88,362
|
|
(1)
|
Included in total non-performing loans.
|
Three Months Ended March 31, 2020
(In thousands) |
Commercial
|
|
Commercial
Real Estate |
|
Residential
Real Estate and Other |
|
Total
|
||||||||
Balance at beginning of period
|
$
|
18,739
|
|
|
$
|
16,873
|
|
|
$
|
28,224
|
|
|
$
|
63,836
|
|
Additions during the period
|
5,602
|
|
|
16,053
|
|
|
2,142
|
|
|
23,797
|
|
||||
Reductions:
|
|
|
|
|
|
|
|
||||||||
Charge-offs
|
—
|
|
|
—
|
|
|
(345
|
)
|
|
(345
|
)
|
||||
Transferred to OREO and other repossessed assets
|
—
|
|
|
—
|
|
|
(945
|
)
|
|
(945
|
)
|
||||
Removal of TDR loan status (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Payments received
|
(635
|
)
|
|
(463
|
)
|
|
(1,608
|
)
|
|
(2,706
|
)
|
||||
Balance at period end
|
$
|
23,706
|
|
|
$
|
32,463
|
|
|
$
|
27,468
|
|
|
$
|
83,637
|
|
Three Months Ended March 31, 2019
(In thousands) |
Commercial
|
|
Commercial
Real Estate |
|
Residential
Real Estate and Other |
|
Total
|
||||||||
Balance at beginning of period
|
$
|
36,319
|
|
|
$
|
15,447
|
|
|
$
|
14,336
|
|
|
$
|
66,102
|
|
Additions during the period
|
18,930
|
|
|
302
|
|
|
4,486
|
|
|
23,718
|
|
||||
Reductions:
|
|
|
|
|
|
|
|
||||||||
Charge-offs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Transferred to OREO and other repossessed assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Removal of TDR loan status (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Payments received
|
(1,209
|
)
|
|
(109
|
)
|
|
(140
|
)
|
|
(1,458
|
)
|
||||
Balance at period end
|
$
|
54,040
|
|
|
$
|
15,640
|
|
|
$
|
18,682
|
|
|
$
|
88,362
|
|
(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.
|
|
Three Months Ended
|
||||||
(In thousands)
|
March 31,
2020 |
|
March 31,
2019 |
||||
Balance at beginning of period
|
$
|
15,171
|
|
|
$
|
24,820
|
|
Disposal/resolved
|
(4,793
|
)
|
|
(2,758
|
)
|
||
Transfers in at fair value, less costs to sell
|
954
|
|
|
32
|
|
||
Fair value adjustments
|
(306
|
)
|
|
(574
|
)
|
||
Balance at end of period
|
$
|
11,026
|
|
|
$
|
21,520
|
|
|
Period End
|
||||||||||
(In thousands)
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
||||||
Residential real estate
|
$
|
1,684
|
|
|
$
|
1,016
|
|
|
$
|
3,037
|
|
Residential real estate development
|
—
|
|
|
810
|
|
|
1,139
|
|
|||
Commercial real estate
|
9,342
|
|
|
13,345
|
|
|
17,344
|
|
|||
Total
|
$
|
11,026
|
|
|
$
|
15,171
|
|
|
$
|
21,520
|
|
Time Certificates of Deposit
Maturity/Re-pricing Analysis As of March 31, 2020
(Dollars in thousands)
|
|
CDARs &
Brokered
Certificates
of Deposit (1)
|
|
MaxSafe
Certificates
of Deposit (1)
|
|
Variable Rate
Certificates
of Deposit (2)
|
|
Other Fixed
Rate Certificates
of Deposit (1)
|
|
Total Time
Certificates of
Deposits
|
|
Weighted-Average
Rate of Maturing
Time Certificates
of Deposit (3)
|
|||||||||||
1-3 months
|
|
$
|
1,424
|
|
|
$
|
22,260
|
|
|
$
|
66,464
|
|
|
$
|
1,270,123
|
|
|
$
|
1,360,271
|
|
|
2.00
|
%
|
4-6 months
|
|
1,686
|
|
|
23,324
|
|
|
—
|
|
|
627,255
|
|
|
652,265
|
|
|
1.88
|
|
|||||
7-9 months
|
|
609
|
|
|
20,482
|
|
|
—
|
|
|
506,943
|
|
|
528,034
|
|
|
1.70
|
|
|||||
10-12 months
|
|
—
|
|
|
9,319
|
|
|
—
|
|
|
762,874
|
|
|
772,193
|
|
|
1.98
|
|
|||||
13-18 months
|
|
1,401
|
|
|
18,348
|
|
|
—
|
|
|
1,503,823
|
|
|
1,523,572
|
|
|
2.31
|
|
|||||
19-24 months
|
|
—
|
|
|
6,631
|
|
|
—
|
|
|
368,831
|
|
|
375,462
|
|
|
2.00
|
|
|||||
24+ months
|
|
88
|
|
|
2,794
|
|
|
—
|
|
|
175,100
|
|
|
177,982
|
|
|
1.75
|
|
|||||
Total
|
|
$
|
5,208
|
|
|
$
|
103,158
|
|
|
$
|
66,464
|
|
|
$
|
5,214,949
|
|
|
$
|
5,389,779
|
|
|
2.03
|
%
|
(1)
|
This category of certificates of deposit is shown by contractual maturity date.
|
(2)
|
This category includes variable rate certificates of deposit and savings certificates with the majority repricing on at least a monthly basis.
|
(3)
|
Weighted-average rate excludes the impact of purchase accounting fair value adjustments.
|
|
Three Months Ended
|
|||||||||||||||||||
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2019
|
|||||||||||||||
(Dollars in thousands)
|
Balance
|
|
Percent
|
|
Balance
|
|
Percent
|
|
Balance
|
|
Percent
|
|||||||||
Non-interest bearing
|
$
|
7,235,177
|
|
|
24
|
%
|
|
$
|
7,128,166
|
|
|
25
|
%
|
|
$
|
6,444,378
|
|
|
25
|
%
|
NOW and interest bearing demand deposits
|
3,113,733
|
|
|
11
|
|
|
3,016,991
|
|
|
10
|
|
|
2,803,338
|
|
|
11
|
|
|||
Wealth management deposits
|
2,838,719
|
|
|
9
|
|
|
2,934,292
|
|
|
10
|
|
|
2,614,035
|
|
|
10
|
|
|||
Money market
|
7,990,775
|
|
|
27
|
|
|
7,647,635
|
|
|
26
|
|
|
5,915,525
|
|
|
23
|
|
|||
Savings
|
3,189,835
|
|
|
11
|
|
|
3,028,763
|
|
|
10
|
|
|
2,715,422
|
|
|
11
|
|
|||
Time certificates of deposit
|
5,526,407
|
|
|
18
|
|
|
5,682,449
|
|
|
19
|
|
|
5,267,796
|
|
|
20
|
|
|||
Total average deposits
|
$
|
29,894,646
|
|
|
100
|
%
|
|
$
|
29,438,296
|
|
|
100
|
%
|
|
$
|
25,760,494
|
|
|
100
|
%
|
|
March 31,
|
|
December 31,
|
||||||||||||||||
(Dollars in thousands)
|
2020
|
|
2019
|
|
2019
|
|
2018
|
|
2017
|
||||||||||
Total deposits
|
$
|
31,461,660
|
|
|
$
|
26,804,742
|
|
|
$
|
30,107,138
|
|
|
$
|
26,094,678
|
|
|
$
|
23,183,347
|
|
Brokered deposits
|
2,181,090
|
|
|
1,622,842
|
|
|
1,011,404
|
|
|
1,071,562
|
|
|
1,445,306
|
|
|||||
Brokered deposits as a percentage of total deposits
|
6.9
|
%
|
|
6.1
|
%
|
|
3.4
|
%
|
|
4.1
|
%
|
|
6.2
|
%
|
|
Three Months Ended
|
||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
(In thousands)
|
2020
|
|
2019
|
|
2019
|
||||||
FHLB advances
|
$
|
951,613
|
|
|
$
|
596,594
|
|
|
$
|
594,335
|
|
Other borrowings:
|
|
|
|
|
|
||||||
Notes payable
|
127,978
|
|
|
128,319
|
|
|
144,284
|
|
|||
Short-term borrowings
|
45,089
|
|
|
14,801
|
|
|
111,413
|
|
|||
Secured borrowings
|
250,054
|
|
|
225,416
|
|
|
162,367
|
|
|||
Other
|
46,456
|
|
|
46,556
|
|
|
47,507
|
|
|||
Total other borrowings
|
$
|
469,577
|
|
|
$
|
415,092
|
|
|
$
|
465,571
|
|
Subordinated notes
|
436,119
|
|
|
436,025
|
|
|
139,217
|
|
|||
Junior subordinated debentures
|
253,566
|
|
|
253,566
|
|
|
253,566
|
|
|||
Total other funding sources
|
$
|
2,110,875
|
|
|
$
|
1,701,277
|
|
|
$
|
1,452,689
|
|
|
March 31,
2020 |
|
December 31,
2019 |
|
March 31,
2019 |
|||
Tier 1 leverage ratio
|
8.5
|
%
|
|
8.7
|
%
|
|
9.1
|
%
|
Risk-based capital ratios:
|
|
|
|
|
|
|||
Tier 1 capital ratio
|
9.3
|
|
|
9.6
|
|
|
9.8
|
|
Common equity tier 1 capital ratio
|
8.9
|
|
|
9.2
|
|
|
9.3
|
|
Total capital ratio
|
11.9
|
|
|
12.2
|
|
|
11.7
|
|
Other ratio:
|
|
|
|
|
|
|||
Total average equity-to-total average assets(1)
|
10.1
|
|
|
10.2
|
|
|
10.6
|
|
(1)
|
Based on quarterly average balances.
|
|
Minimum
Capital
Requirements
|
|
Well
Capitalized
|
||
Leverage ratio
|
4.0
|
%
|
|
5.0
|
%
|
Tier 1 capital to risk-weighted assets
|
6.0
|
|
|
8.0
|
|
Common equity Tier 1 capital to risk-weighted assets
|
4.5
|
|
|
6.5
|
|
Total capital to risk-weighted assets
|
8.0
|
|
|
10.0
|
|
•
|
the severity, magnitude and duration of the COVID-19 pandemic and the direct and indirect impact of such pandemic, as well as responses to the pandemic by the government, business and consumers, on our operations and personnel, commercial activity and demand across our business and our customers’ businesses;
|
•
|
the disruption of global, national, state and local economies associated with the COVID-19 pandemic, which could affect the Company’s liquidity and capital positions, impair the ability of our borrowers to repay outstanding loans, impair collateral values and further increase our allowance for credit losses;
|
•
|
the impact of the COVID-19 pandemic on our financial results, including possible lost revenue and increased expenses (including the cost of capital), as well as possible goodwill impairment charges;
|
•
|
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 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 (including developments and volatility arising from or related to the COVID-19 pandemic) 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;
|
•
|
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 related changes to address the impact of COVID-19, and the impact on the Company’s financial statements;
|
•
|
the ability of the Company to receive dividends from its subsidiaries;
|
•
|
uncertainty about the discontinued use of LIBOR and transition to an alternative rate;
|
•
|
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, including those changes that are in response to the COVID-19 pandemic, including without limitation the CARES Act and the rules and regulations that may be promulgated thereunder;
|
•
|
a lowering of our credit rating;
|
•
|
changes in U.S. monetary policy and changes to the Federal Reserve’s balance sheet, including changes in response to the COVID-19 pandemic or otherwise;
|
•
|
regulatory restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business;
|
•
|
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.
|
Static Shock Scenarios
|
+200
Basis Points |
|
+100
Basis Points |
|
-100
Basis Points |
|||
March 31, 2020
|
22.5
|
%
|
|
10.6
|
%
|
|
(9.4
|
)%
|
December 31, 2019
|
18.6
|
|
|
9.7
|
|
|
(10.9
|
)
|
March 31, 2019
|
14.9
|
|
|
7.8
|
|
|
(8.5
|
)
|
Ramp Scenarios
|
+200
Basis Points |
|
+100
Basis Points |
|
-100
Basis Points |
|||
March 31, 2020
|
7.7
|
%
|
|
3.7
|
%
|
|
(3.8
|
)%
|
December 31, 2019
|
9.3
|
|
|
4.8
|
|
|
(5.0
|
)
|
March 31, 2019
|
6.7
|
|
|
3.5
|
|
|
(3.3
|
)
|
•
|
Deterioration in economic conditions may materially adversely affect the financial services industry and our business, financial condition, results of operations and cash flows.
|
•
|
Since our business is concentrated in the Chicago metropolitan and southern Wisconsin market areas, economic declines in the economy of this region could adversely affect our business.
|
•
|
If our allowance for loan losses is not sufficient to absorb losses that may occur in our loan portfolio, our financial condition and liquidity could suffer.
|
•
|
A significant portion of our loan portfolio is comprised of commercial loans, the repayment of which is largely dependent upon the financial success and economic viability of the borrower.
|
•
|
A substantial portion of our loan portfolio is secured by real estate, in particular commercial real estate. Deterioration in the real estate markets could lead to additional losses, which could have a material adverse effect on our financial condition and results of operations.
|
•
|
Events impacting collateral consisting of real property could lead to additional losses which could have a material adverse effect on our financial condition and results of operations.
|
•
|
Any inaccurate assumptions in our analytical and forecasting models could cause us to miscalculate our projected revenue, capital, liquidity or losses, which could adversely affect our financial condition.
|
•
|
Changes in prevailing interest rates could adversely affect our net interest income, which is our largest source of income.
|
•
|
Our liquidity position may be negatively impacted if economic conditions do not continue to improve or if they decline.
|
•
|
Damage to our reputation may harm our business.
|
•
|
An actual or perceived reduction in our financial strength may cause others to reduce or cease doing business with us, which could result in a decrease in our net interest income and fee revenues.
|
•
|
If our credit rating is lowered, our financing costs could increase.
|
•
|
If our growth requires us to raise additional capital, that capital may not be available when it is needed or the cost of that capital may be very high.
|
•
|
Disruption in the financial markets could result in lower fair values for our investment securities portfolio.
|
•
|
Our controls and procedures may fail or be circumvented.
|
•
|
Our operational or security systems or infrastructure, or those of third parties, could fail or be breached, which could disrupt our business and adversely impact our results of operations, liquidity and financial condition, as well as cause legal or reputational harm.
|
•
|
We face security risks, including denial of service attacks, hacking, social engineering attacks targeting our colleagues and customers, malware intrusion and data corruption attempts, in addition to the resulting identity theft that could result in the disclosure of confidential information, all of which could adversely affect our business or reputation, and create significant legal and financial exposure.
|
•
|
Our vendors may be responsible for failures that adversely affect our operations.
|
•
|
We are subject to claims and legal actions that could negatively affect our results of operations or financial condition.
|
•
|
Losses incurred in connection with actual or projected repurchases and indemnification payments related to mortgages that we have sold into the secondary market may exceed our financial statement reserves and we may be required to increase such reserves in the future. Increases to our reserves and losses incurred in connection with actual loan repurchases and indemnification payments could have a material adverse effect on our business, financial condition, results of operations or cash flows.
|
•
|
We may be adversely impacted by the soundness of other financial institutions.
|
•
|
Changes in accounting policies or accounting standards could materially adversely affect how we report our financial results and financial condition.
|
•
|
We are a bank holding company, and our sources of funds, including to pay dividends, are limited.
|
•
|
Our business could be adversely affected by the occurrence of extraordinary events, such as acts of war, terrorist attacks, natural disasters and public health threats.
|
•
|
If we fail to meet our regulatory capital ratios, we may be forced to raise capital or sell assets.
|
•
|
Changes in the United States’ monetary policy may restrict our ability to conduct our business in a profitable manner.
|
•
|
Legislative and regulatory actions taken now or in the future regarding the financial services industry may significantly increase our costs or limit our ability to conduct our business in a profitable manner.
|
•
|
Our premium finance business may involve a higher risk of delinquency or collection than our other lending operations, and could expose us to losses.
|
•
|
Widespread financial difficulties or credit downgrades among commercial and life insurance providers could lessen the value of the collateral securing our premium finance loans and impair the financial condition and liquidity of FIRST Insurance Funding, Wintrust Life Finance and FIFC Canada.
|
Month Period
|
Total Number of Shares Purchased
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Dollar Value that May Yet Be Purchased Under the Plans or Programs (in thousands)
|
||||
January 1, 2020 to January 31, 2020
|
139,494
|
|
$
|
63.96
|
|
|
138,089
|
|
$
|
116,096
|
|
February 1, 2020 to February 29, 2020
|
452,378
|
|
64.19
|
|
|
438,380
|
|
87,884
|
|
||
March 1, 2020 to March 31, 2020
|
0
|
|
—
|
|
|
0
|
|
87,884
|
|
||
Total
|
591,872
|
|
$
|
64.14
|
|
|
576,469
|
|
$
|
87,884
|
|
(a)
|
Exhibits
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
101.INS
|
|
The XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (1)
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
104
|
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
|
(1)
|
Includes the following financial information included in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, formatted in iXBRL (Inline 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
|
|
|
WINTRUST FINANCIAL CORPORATION
(Registrant)
|
||
Date:
|
May 4, 2020
|
/s/ DAVID L. STOEHR
|
||
|
|
David L. Stoehr
|
||
|
|
Executive Vice President and
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q 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: Founder and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q 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
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(1)
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The Quarterly Report of the Company on Form 10-Q for the period ended March 31, 2020, as filed with the Securities and Exchange Commission on May 4, 2020 (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
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ EDWARD J. WEHMER
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Name: Edward J. Wehmer
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Title: Founder and Chief Executive Officer
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Date: May 4, 2020
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/s/ DAVID L. STOEHR
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Name: David L. Stoehr
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Title: Executive Vice President and
Chief Financial Officer
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Date: May 4, 2020
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