ý
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Maryland
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36-4460265
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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800 West Madison Street, Chicago, Illinois
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60607
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, par value $0.01 per share
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The NASDAQ Stock Market LLC
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Depositary Shares, each representing a 1/40
th
interest in a share of 6.00% Perpetual Non-Cumulative Preferred Stock, Series C
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The NASDAQ Stock Market LLC
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Large accelerated filer
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Accelerated filer
o
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Non-accelerated filer
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(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Emerging growth company
o
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Page
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Item 1
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Item 1A
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Item 1B
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Item 2
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Item 3
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Item 4
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Item 5
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Item 6
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Item 7
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Item 7A
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Item 8
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Item 9
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Item 9A
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Item 9B
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Item 10
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Item 11
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Item 12
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Item 13
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Item 14
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Item 15
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Item 1.
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Business
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•
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Acquiring directly or indirectly, ownership or control of any voting shares of another bank or bank holding company if, after such acquisition, it would own or control more than 5% of such shares (unless it already owns or controls the majority of such shares);
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Acquiring control of, or all or substantially all of the assets of, another bank or bank holding company, or
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Merging or consolidating with another bank holding company.
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Real estate lending standards, which provide guidelines concerning loan-to-value ratios for various types of real estate loans;
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Risk-based capital rules, including accounting for interest rate risk, concentration of credit risk and the risks posed by non-traditional activities;
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Rules requiring depository institutions to develop and implement internal procedures to evaluate and control credit and settlement exposure to their correspondent banks;
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Rules restricting types and amounts of equity investments; and
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Rules addressing various safety and soundness issues, including operations and managerial standards, standards for asset quality, earnings and compensation standards.
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Centralize responsibility for consumer financial protection by creating the CFPB, with broad rulemaking, supervision and enforcement authority for a wide range of consumer protection laws that apply to all banks and certain others, including examination and enforcement powers with respect to any bank with more than $10 billion in assets and its affiliates, and the power to prohibit unfair, deceptive or abusive acts or practices.
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•
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Restrict the preemption of state consumer financial protection law by federal law and disallow subsidiaries and affiliates of national banks, such as MB Financial Bank, from availing themselves of such preemption.
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Require new capital rules (discussed under “--Capital Adequacy” above).
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Require publicly-traded bank holding companies with assets of $10 billion or more to establish a risk committee responsible for enterprise-wide risk management practices, comprised of an independent chairman and at least one risk management expert.
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Change the assessment base for federal deposit insurance from the amount of insured deposits to consolidated average assets less tangible capital.
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Increase the minimum ratio of net worth to insured deposits of the Deposit Insurance Fund from 1.15% to 1.35% and require the FDIC, in setting assessments, to offset the effect of the increase on institutions with assets of less than $10 billion. This increase is generally expected to impose more deposit insurance cost on institutions with assets of $10 billion or more.
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Provide for new disclosure and other requirements relating to executive compensation and corporate governance, including guidelines or regulations on incentive-based compensation and a prohibition on compensation arrangements that encourage inappropriate risks or that could provide excessive compensation.
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Make permanent the $250 thousand general limit for federal deposit insurance.
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Repeal the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transaction and other accounts.
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Allow de novo interstate branching by banks.
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Give the Federal Reserve Board the authority to establish rules regarding interchange fees charged for electronic debit transactions by a payment card issuer that, together with its affiliates, has assets of $10 billion or more and to enforce a new statutory requirement that such fees be reasonable and proportional to the actual cost of a transaction to the issuer. The Federal Reserve Board has adopted rules under this provision that limit the swipe fees that a debit card issuer can charge a merchant for a transaction to the sum of 21 cents and five basis points times the value of the transaction, plus up to one cent for fraud prevention costs.
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Increase the authority of the Federal Reserve Board to examine the Company and its non-bank subsidiaries.
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Require all bank holding companies to serve as a source of financial strength to their depository institution subsidiaries in the event such subsidiaries suffer from financial distress.
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Restrict proprietary trading by banks, bank holding companies and others, and their acquisition and retention of ownership interests in and sponsorship of hedge funds and private equity funds, as described above under “--Volcker Rule.”
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Require annual stress testing by banks and their holding companies with more than $10 billion in assets and impose certain reporting and disclosure requirements.
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Item 1A.
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Risk Factors
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we may experience negative reactions from the financial markets, including negative impacts on our stock price (including to the extent that the current market price reflects a market assumption that the merger will be completed);
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we may experience negative reactions from our customers, vendors, and employees;
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we will have incurred substantial expenses and will be required to pay certain costs relating to the merger, whether or not the merger is completed;
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the merger agreement places certain restrictions on the conduct of our businesses prior to completion of the merger. Such restrictions, the waiver of which is subject to the consent of Fifth Third (not to be unreasonably withheld, conditioned or delayed), may prevent us from making certain acquisitions or taking certain other specified actions during the pendency of the merger; and
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matters relating to the merger (including integration planning) have required, and will continue to require, substantial commitments of time and resources by our management, which would otherwise have been devoted to other opportunities that may have been beneficial to us as an independent company.
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loan delinquencies may increase;
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problem assets and foreclosures may increase;
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demand for our products and services may decline;
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collateral for our loans may decline in value, in turn reducing a customer’s borrowing power; and
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the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us.
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cash flow of the borrower and/or the project being financed;
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changes and uncertainties as to the future value of the collateral, in the case of a collateralized loan;
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credit experience of a particular borrower;
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changes in economic and industry conditions; and
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duration of the loan.
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our general reserve, based on our historical default and loss experience as well as current macroeconomic factors; and
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our specific reserve, based on our evaluation of non-performing loans and their underlying collateral.
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Item 1B.
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Unresolved Staff Comments
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Item 2.
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Properties
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Item 3.
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Legal Proceedings
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Item 4.
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Mine Safety Disclosures
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Item 5.
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Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
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Total Number of
Shares Purchased
(1)
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Average Price Paid
per Share
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Total Number of Shares Purchased
as Part of Publicly Announced
Plans or Programs
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Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in Thousands)
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October 1, 2018 — October 31, 2018
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—
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$
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—
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—
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$
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—
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November 1, 2018 — November 30, 2018
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—
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—
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—
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—
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December 1, 2018 — December 31, 2018
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2,998
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37.98
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—
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—
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Total
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2,998
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$
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37.98
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—
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(1)
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Includes shares withheld to satisfy tax withholding obligations upon the exercise of stock options and vesting of restricted stock awards.
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Period Ending
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Index
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12/31/2013
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12/31/2014
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12/31/2015
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12/31/2016
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12/31/2017
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12/31/2018
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MB Financial, Inc.
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$
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100.00
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$
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104.29
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$
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104.80
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$
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155.93
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$
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149.77
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$
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136.19
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NASDAQ Composite Index
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100.00
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114.75
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122.74
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133.62
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173.22
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168.30
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SNL Mid Cap Bank Index
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100.00
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101.86
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109.65
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152.25
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152.87
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125.02
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Item 6.
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Selected Financial Data
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As of or for the Year Ended December 31,
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(Dollars in thousands, except per share data)
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2018
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2017
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2016
(1)
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2015
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2014
(2)
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Statement of Operations Data:
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Interest income
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$
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749,606
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$
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672,446
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$
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557,177
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$
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494,234
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$
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375,148
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Interest expense
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111,803
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70,069
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39,286
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28,628
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24,325
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Net interest income
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637,803
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602,377
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517,891
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465,606
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350,823
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Provision for credit losses
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47,201
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21,593
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19,563
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21,386
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12,052
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Net interest income after provision for credit losses
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590,602
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580,784
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498,328
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444,220
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338,771
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Non-interest income
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342,629
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369,374
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378,150
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325,064
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223,546
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Non-interest expenses
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681,060
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661,343
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623,098
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537,125
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439,023
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Income before income taxes
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252,171
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288,815
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253,380
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232,159
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123,294
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Income tax expense (benefit)
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38,256
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(15,225
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)
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79,244
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73,211
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37,193
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Net income
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213,915
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304,040
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174,136
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158,948
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86,101
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Dividends on preferred shares
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12,100
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8,007
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8,009
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8,000
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4,000
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Return from preferred stockholders due to redemption
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(15,280
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)
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—
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—
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—
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—
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|||||
Net income available to common stockholders
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$
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217,095
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$
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296,033
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$
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166,127
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$
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150,948
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$
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82,101
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Common Share Data:
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Basic earnings per common share
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$
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2.58
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$
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3.53
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$
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2.16
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$
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2.03
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$
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1.32
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Diluted earnings per common share
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2.55
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3.49
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2.13
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2.02
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1.31
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Book value per common share
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33.70
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32.17
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29.43
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26.77
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25.58
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|||||
Weighted average common shares outstanding:
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|||||
Basic
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84,277,230
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|
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83,836,732
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76,968,823
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74,177,574
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62,012,196
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|||||
Diluted
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85,206,300
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84,823,456
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77,976,121
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74,849,030
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62,573,406
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|||||
Dividend payout ratio on common stock
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37.65
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%
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23.50
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%
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34.74
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%
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32.18
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%
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39.69
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%
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|||||
Cash dividends per common share
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$
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0.96
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$
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0.82
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$
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0.74
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$
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0.65
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$
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0.52
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(1)
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On August 24, 2016, we completed the American Chartered merger. See Note 2 of the notes to consolidated financial statements contained under "Item 8. Financial Statements and Supplementary Data."
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(2)
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On August 18, 2014, we completed the Taylor Capital merger. See "Item 1. Business" section.
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As of or for the Year Ended December 31,
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(Dollars in thousands)
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2018
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2017
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2016
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2015
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2014
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Balance Sheet Data:
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|||||
Cash and cash equivalents
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$
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650,407
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$
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579,221
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$
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463,469
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$
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381,441
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$
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312,081
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Investment securities
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2,882,398
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2,481,519
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2,909,221
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2,930,066
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2,723,701
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|||||
Loans, gross
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14,035,183
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13,966,062
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12,768,803
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9,793,998
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9,083,217
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|||||
Allowance for loan and lease losses
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161,578
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157,710
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139,366
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128,140
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110,026
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|||||
Loans held for sale
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45,550
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548,578
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716,883
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744,727
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737,209
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|||||
Total assets
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20,207,026
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20,086,940
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19,302,317
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15,585,007
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14,602,099
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|||||
Deposits
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14,654,213
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14,958,378
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14,110,448
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11,505,215
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10,990,942
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|||||
Short-term and long-term borrowings
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1,819,736
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1,366,197
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1,881,078
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1,406,011
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1,014,331
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|||||
Junior subordinated notes issued to capital trusts
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121,118
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211,494
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210,668
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|
|
186,164
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|
|
185,778
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|
|||||
Stockholders’ equity
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|
3,034,848
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|
|
3,009,823
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|
|
2,579,209
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|
|
2,087,284
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|
|
2,028,286
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|
|||||
Performance Ratios:
|
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|
|||||
Return on average assets
|
|
1.07
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%
|
|
1.55
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%
|
|
1.03
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%
|
|
1.07
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%
|
|
0.75
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%
|
|||||
Return on average equity
|
|
7.23
|
|
|
11.41
|
|
|
7.65
|
|
|
7.72
|
|
|
5.40
|
|
|||||
Return on average common equity
|
|
7.90
|
|
|
11.71
|
|
|
7.69
|
|
|
7.77
|
|
|
5.29
|
|
|||||
Net interest margin
(1)
|
|
3.71
|
|
|
3.54
|
|
|
3.50
|
|
|
3.60
|
|
|
3.51
|
|
|||||
Tax equivalent effect
|
|
0.07
|
|
|
0.16
|
|
|
0.20
|
|
|
0.21
|
|
|
0.24
|
|
|||||
Net interest margin — fully tax equivalent basis
(1)
|
|
3.78
|
|
|
3.70
|
|
|
3.70
|
|
|
3.81
|
|
|
3.75
|
|
|||||
Loans to deposits
|
|
95.78
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|
|
93.37
|
|
|
90.49
|
|
|
85.13
|
|
|
82.64
|
|
|||||
Asset Quality Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing loans to total loans
(2)
|
|
0.50
|
%
|
|
0.55
|
%
|
|
0.46
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%
|
|
1.07
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%
|
|
0.96
|
%
|
|||||
Non-performing assets to total assets
(3)
|
|
0.40
|
|
|
0.43
|
|
|
0.45
|
|
|
0.87
|
|
|
0.73
|
|
|||||
Allowance for loan and lease losses to total loans
|
|
1.15
|
|
|
1.13
|
|
|
1.09
|
|
|
1.31
|
|
|
1.21
|
|
|||||
Allowance for loan and lease losses to non-performing loans
(2)
|
|
229.61
|
|
|
205.33
|
|
|
234.81
|
|
|
122.43
|
|
|
126.34
|
|
|||||
Net loan charge-offs to average loans
|
|
0.32
|
|
|
0.03
|
|
|
0.09
|
|
|
0.04
|
|
|
0.18
|
|
|||||
Liquidity and Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common equity tier 1 capital to risk-weighted assets
|
|
10.14
|
%
|
|
9.40
|
%
|
|
8.72
|
%
|
|
9.27
|
%
|
|
N/A
|
|
|||||
Tier 1 capital to risk-weighted assets
|
|
11.25
|
|
|
11.20
|
|
|
9.40
|
|
|
11.54
|
%
|
|
12.61
|
%
|
|||||
Total capital to risk-weighted assets
|
|
13.67
|
|
|
14.23
|
|
|
11.63
|
|
|
12.54
|
|
|
13.62
|
|
|||||
Tier 1 capital to average assets
|
|
10.50
|
|
|
10.02
|
|
|
8.38
|
|
|
10.40
|
|
|
10.47
|
|
|||||
Average equity to average assets
|
|
14.83
|
|
|
13.58
|
|
|
13.45
|
|
|
13.89
|
|
|
13.96
|
|
|||||
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Banking facilities
|
|
86
|
|
|
86
|
|
|
96
|
|
|
81
|
|
|
86
|
|
|||||
Full time equivalent employees
|
|
2,661
|
|
|
3,574
|
|
|
3,486
|
|
|
2,980
|
|
|
2,839
|
|
(1)
|
Net interest margin represents net interest income as a percentage of average interest earning assets. Prior periods have been revised to reflect the revised method of annualizing interest income and interest expense. See "Net Interest Income" under "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations."
|
(2)
|
Non-performing loans include loans accounted for on a non-accrual basis and accruing loans contractually past due 90 days or more as to interest or principal. Non-performing loans excludes purchased credit-impaired loans and loans held for sale. See Note 5 in the notes to consolidated financial statements contained under "Item 8. Financial Statements and Supplementary Data."
|
(3)
|
Non-performing assets include non-performing loans, other real estate owned and other repossessed assets. Non-performing assets excludes purchased credit-impaired loans, loans held for sale, and other real estate owned related to FDIC transactions. See Note 5 in the notes to consolidated financial statements contained under "Item 8. Financial Statements and Supplementary Data."
|
|
|
Three Months Ended 2018
|
|
Three Months Ended 2017
|
||||||||||||||||||||||||||||
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
September
|
|
June
|
|
March
|
||||||||||||||||
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
193,944
|
|
|
$
|
191,739
|
|
|
$
|
186,992
|
|
|
$
|
176,931
|
|
|
$
|
174,966
|
|
|
$
|
176,570
|
|
|
$
|
164,999
|
|
|
$
|
155,911
|
|
Interest expense
|
|
30,439
|
|
|
29,891
|
|
|
27,923
|
|
|
23,550
|
|
|
21,573
|
|
|
19,623
|
|
|
16,005
|
|
|
12,868
|
|
||||||||
Net interest income
|
|
163,505
|
|
|
161,848
|
|
|
159,069
|
|
|
153,381
|
|
|
153,393
|
|
|
156,947
|
|
|
148,994
|
|
|
143,043
|
|
||||||||
Provision for credit losses
|
|
11,971
|
|
|
21,503
|
|
|
6,219
|
|
|
7,508
|
|
|
3,643
|
|
|
4,517
|
|
|
9,699
|
|
|
3,734
|
|
||||||||
Net interest income after provision for credit losses
|
|
151,534
|
|
|
140,345
|
|
|
152,850
|
|
|
145,873
|
|
|
149,750
|
|
|
152,430
|
|
|
139,295
|
|
|
139,309
|
|
||||||||
Non-interest income
|
|
81,680
|
|
|
79,841
|
|
|
88,306
|
|
|
92,802
|
|
|
89,823
|
|
|
95,931
|
|
|
91,170
|
|
|
92,450
|
|
||||||||
Non-interest expenses
|
|
151,638
|
|
|
168,544
|
|
|
192,992
|
|
|
167,886
|
|
|
175,828
|
|
|
162,961
|
|
|
166,212
|
|
|
156,342
|
|
||||||||
Income before income taxes
|
|
81,576
|
|
|
51,642
|
|
|
48,164
|
|
|
70,789
|
|
|
63,745
|
|
|
85,400
|
|
|
64,253
|
|
|
75,417
|
|
||||||||
Income tax expense (benefit)
|
|
5,665
|
|
|
8,928
|
|
|
9,631
|
|
|
14,032
|
|
|
(80,449
|
)
|
|
24,557
|
|
|
19,787
|
|
|
20,880
|
|
||||||||
Net income
|
|
$
|
75,911
|
|
|
$
|
42,714
|
|
|
$
|
38,533
|
|
|
$
|
56,757
|
|
|
$
|
144,194
|
|
|
$
|
60,843
|
|
|
$
|
44,466
|
|
|
$
|
54,537
|
|
Dividends on preferred shares
|
|
3,000
|
|
|
3,000
|
|
|
3,000
|
|
|
3,100
|
|
|
2,000
|
|
|
2,002
|
|
|
2,002
|
|
|
2,003
|
|
||||||||
Return from preferred stockholders due to redemption
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,280
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net income available to common stockholders
|
|
$
|
72,911
|
|
|
$
|
39,714
|
|
|
$
|
35,533
|
|
|
$
|
68,937
|
|
|
$
|
142,194
|
|
|
$
|
58,841
|
|
|
$
|
42,464
|
|
|
$
|
52,534
|
|
Net interest margin
|
|
3.84
|
%
|
|
3.74
|
%
|
|
3.66
|
%
|
|
3.59
|
%
|
|
3.49
|
%
|
|
3.60
|
%
|
|
3.55
|
%
|
|
3.52
|
%
|
||||||||
Tax equivalent effect
|
|
0.07
|
|
|
0.07
|
|
|
0.07
|
|
|
0.08
|
|
|
0.14
|
|
|
0.16
|
|
|
0.16
|
|
|
0.17
|
|
||||||||
Net interest margin on a fully tax equivalent basis
|
|
3.91
|
%
|
|
3.81
|
%
|
|
3.73
|
%
|
|
3.67
|
%
|
|
3.63
|
%
|
|
3.76
|
%
|
|
3.71
|
%
|
|
3.69
|
%
|
||||||||
Common Share Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share
|
|
$
|
0.86
|
|
|
$
|
0.47
|
|
|
$
|
0.42
|
|
|
$
|
0.82
|
|
|
$
|
1.69
|
|
|
$
|
0.70
|
|
|
$
|
0.51
|
|
|
$
|
0.63
|
|
Diluted earnings per common share
|
|
0.85
|
|
|
0.47
|
|
|
0.42
|
|
|
0.81
|
|
|
1.67
|
|
|
0.69
|
|
|
0.50
|
|
|
0.62
|
|
||||||||
Weighted average common shares outstanding
|
|
84,414,900
|
|
|
84,369,519
|
|
|
84,253,966
|
|
|
84,065,681
|
|
|
83,946,637
|
|
|
83,891,175
|
|
|
83,842,963
|
|
|
83,662,430
|
|
||||||||
Diluted weighted average common shares outstanding
|
|
85,337,028
|
|
|
85,335,109
|
|
|
85,251,810
|
|
|
84,896,401
|
|
|
84,964,759
|
|
|
84,779,797
|
|
|
84,767,414
|
|
|
84,778,130
|
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
a
$35.4 million
increase in net interest income as a result of higher average loan balances and higher loan yields partly offset by increased funding costs;
|
•
|
a
$25.6 million
increase in provision for credit losses mostly the result of higher charge-offs during the second half of 2018 due to one loan relationship;
|
•
|
a
$26.7 million
decrease in non-interest income due to a decrease in mortgage banking revenue as a result of lower mortgage origination volume attributable to the discontinuation of our national mortgage origination business partly offset by increases in lease financing revenue, card fees, and wealth management fees;
|
•
|
a
$37.5 million
increase in merger related and repositioning expenses as a result of the discontinuation of our national mortgage origination business and the pending merger with Fifth Third;
|
•
|
a
$11.9 million
loss on extinguishment of debt due to the redemptions of higher-cost junior subordinated notes held by American Chartered Statutory Trust I, American Chartered Statutory Trust II, TAYC Capital Trust II, and Coal City Capital Trust I;
|
•
|
$13.7 million in tax benefits due to re-measurement adjustments related to the revaluation of our deferred tax liabilities resulting from the TCJ Act; and
|
•
|
a lower effective tax rate as a result of the TCJ Act.
|
•
|
a
$84.5 million
increase in net interest income due to strong organic loan growth as well as the full year impact of the American Chartered merger completed in the third quarter of 2016;
|
•
|
a
$8.8 million
decrease in non-interest income due to a decrease in mortgage banking revenue as a result of lower origination volume and gain on sale margin partly offset by increases in lease financing revenues and treasury management fees;
|
•
|
a
$38.2 million
increase in non-interest expense mostly due to the full year impact of the American Chartered merger as well as higher salaries and employee benefits expense (new hires, annual pay increases, and $2.7 million in one-time bonuses associated with the tax reform legislation), higher branch exit and facilities impairment charges (closing of nine branches), and a $7.5 million charitable contribution associated with the tax reform legislation; and
|
•
|
a $104.2 million tax benefit in 2017 due to the impact of the tax reform legislation on our net deferred tax liabilities.
|
|
|
Year Ended December 31,
|
|||||||||||||||||||||||||||||||
(dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||||||||||||||
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|||||||||||||||
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|||||||||||||||
Interest Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans held for sale
|
|
$
|
340,073
|
|
|
$
|
12,006
|
|
|
3.53
|
%
|
|
$
|
632,927
|
|
|
$
|
22,801
|
|
|
3.60
|
%
|
|
$
|
771,384
|
|
|
$
|
26,450
|
|
|
3.43
|
%
|
Loans (1) (2) (3)
|
|
13,587,762
|
|
|
647,987
|
|
|
4.72
|
|
|
12,986,256
|
|
|
564,433
|
|
|
4.31
|
|
|
10,489,352
|
|
|
441,427
|
|
|
4.16
|
|
||||||
Loans exempt from federal income taxes (4)
|
|
268,196
|
|
|
11,715
|
|
|
4.31
|
|
|
336,086
|
|
|
16,408
|
|
|
4.82
|
|
|
368,108
|
|
|
17,109
|
|
|
4.57
|
|
||||||
Taxable investment securities
|
|
1,439,627
|
|
|
40,201
|
|
|
2.79
|
|
|
1,472,596
|
|
|
33,975
|
|
|
2.31
|
|
|
1,576,836
|
|
|
35,571
|
|
|
2.26
|
|
||||||
Investment securities exempt from federal income taxes (4)
|
|
1,224,461
|
|
|
47,818
|
|
|
3.91
|
|
|
1,261,295
|
|
|
60,336
|
|
|
4.78
|
|
|
1,331,323
|
|
|
64,649
|
|
|
4.86
|
|
||||||
Other interest earning deposits and Federal funds sold
|
|
188,700
|
|
|
2,381
|
|
|
1.26
|
|
|
182,715
|
|
|
1,354
|
|
|
0.74
|
|
|
106,112
|
|
|
587
|
|
|
0.55
|
|
||||||
Total interest earning assets
|
|
17,048,819
|
|
|
$
|
762,108
|
|
|
4.43
|
|
|
16,871,875
|
|
|
$
|
699,307
|
|
|
4.11
|
|
|
14,643,115
|
|
|
$
|
585,793
|
|
|
3.97
|
|
|||
Non-interest earning assets
|
|
2,899,052
|
|
|
|
|
|
|
|
|
2,758,432
|
|
|
|
|
|
|
|
|
2,281,357
|
|
|
|
|
|
|
|
||||||
Total assets
|
|
$
|
19,947,871
|
|
|
|
|
|
|
|
|
$
|
19,630,307
|
|
|
|
|
|
|
|
|
$
|
16,924,472
|
|
|
|
|
|
|
|
|||
Interest Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Money market, NOW, and interest bearing deposits
|
|
$
|
4,946,089
|
|
|
$
|
35,539
|
|
|
0.72
|
%
|
|
$
|
4,689,676
|
|
|
$
|
16,008
|
|
|
0.34
|
%
|
|
$
|
4,185,129
|
|
|
$
|
9,027
|
|
|
0.22
|
%
|
Savings deposit
|
|
1,194,541
|
|
|
3,730
|
|
|
0.31
|
|
|
1,114,936
|
|
|
1,267
|
|
|
0.11
|
|
|
1,053,429
|
|
|
837
|
|
|
0.08
|
|
||||||
Certificates of deposit
|
|
2,426,966
|
|
|
36,001
|
|
|
1.48
|
|
|
2,232,171
|
|
|
23,410
|
|
|
1.05
|
|
|
1,903,503
|
|
|
15,715
|
|
|
0.83
|
|
||||||
Short-term borrowings
|
|
737,673
|
|
|
10,939
|
|
|
1.48
|
|
|
1,558,501
|
|
|
14,697
|
|
|
0.94
|
|
|
1,131,560
|
|
|
4,195
|
|
|
0.37
|
|
||||||
Long-term borrowings and junior subordinated notes
|
|
795,254
|
|
|
25,594
|
|
|
3.16
|
|
|
571,462
|
|
|
14,687
|
|
|
2.50
|
|
|
589,559
|
|
|
9,512
|
|
|
1.58
|
|
||||||
Total interest bearing liabilities
|
|
10,100,523
|
|
|
$
|
111,803
|
|
|
1.10
|
|
|
10,166,746
|
|
|
$
|
70,069
|
|
|
0.69
|
|
|
8,863,180
|
|
|
$
|
39,286
|
|
|
0.44
|
|
|||
Non-interest bearing deposits
|
|
6,368,681
|
|
|
|
|
|
|
|
|
6,314,086
|
|
|
|
|
|
|
|
|
5,351,197
|
|
|
|
|
|
|
|
||||||
Other non-interest bearing liabilities
|
|
520,258
|
|
|
|
|
|
|
|
|
484,564
|
|
|
|
|
|
|
|
|
433,202
|
|
|
|
|
|
|
|
||||||
Stockholders’ equity
|
|
2,958,409
|
|
|
|
|
|
|
|
|
2,664,911
|
|
|
|
|
|
|
|
|
2,276,893
|
|
|
|
|
|
|
|
||||||
Total liabilities and stockholders’ equity
|
|
$
|
19,947,871
|
|
|
|
|
|
|
|
|
$
|
19,630,307
|
|
|
|
|
|
|
|
|
$
|
16,924,472
|
|
|
|
|
|
|
|
|||
Net interest income/interest rate spread (5)
|
|
|
|
|
$
|
650,305
|
|
|
3.33
|
%
|
|
|
|
|
$
|
629,238
|
|
|
3.42
|
%
|
|
|
|
|
$
|
546,507
|
|
|
3.53
|
%
|
|||
Less: taxable equivalent adjustment
|
|
|
|
|
12,502
|
|
|
|
|
|
|
|
|
26,861
|
|
|
|
|
|
|
|
|
28,616
|
|
|
|
|
||||||
Net interest income, as reported
|
|
|
|
|
$
|
637,803
|
|
|
|
|
|
|
|
|
$
|
602,377
|
|
|
|
|
|
|
|
|
$
|
517,891
|
|
|
|
|
|||
Net interest margin (6)
|
|
|
|
|
|
|
|
3.71
|
%
|
|
|
|
|
|
|
|
3.54
|
%
|
|
|
|
|
|
|
|
3.50
|
%
|
||||||
Tax equivalent effect
|
|
|
|
|
|
|
|
0.07
|
%
|
|
|
|
|
|
|
|
0.16
|
%
|
|
|
|
|
|
|
|
0.20
|
%
|
||||||
Net interest margin on a fully tax equivalent basis (6)
|
|
|
|
|
|
|
|
3.78
|
%
|
|
|
|
|
|
|
|
3.70
|
%
|
|
|
|
|
|
|
|
3.70
|
%
|
||||||
Effect of acquisition accounting discount accretion on loans acquired through bank mergers
|
|
|
|
|
|
(0.10
|
)%
|
|
|
|
|
|
(0.18
|
)%
|
|
|
|
|
|
(0.21
|
)%
|
||||||||||||
Net interest margin on a fully tax equivalent basis, excluding the effect of acquisition accounting discount accretion on loans acquired through bank mergers
|
|
|
|
|
|
3.68
|
%
|
|
|
|
|
|
3.52
|
%
|
|
|
|
|
|
3.49
|
%
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
|
2018 Compared to 2017
|
|
2017 Compared to 2016
|
||||||||||||||||||||
|
|
Change
Due to
Volume
|
|
Change
Due to
Rate
|
|
Total
Change
|
|
Change
Due to
Volume
|
|
Change
Due to
Rate
|
|
Total
Change
|
||||||||||||
Interest Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans held for sale
|
|
$
|
(10,348
|
)
|
|
$
|
(447
|
)
|
|
$
|
(10,795
|
)
|
|
$
|
(4,935
|
)
|
|
$
|
1,286
|
|
|
$
|
(3,649
|
)
|
Loans
|
|
26,964
|
|
|
56,590
|
|
|
83,554
|
|
|
108,107
|
|
|
14,899
|
|
|
123,006
|
|
||||||
Loans exempt from federal income taxes
(1)
|
|
(3,085
|
)
|
|
(1,608
|
)
|
|
(4,693
|
)
|
|
(1,536
|
)
|
|
835
|
|
|
(701
|
)
|
||||||
Taxable investment securities
|
|
(776
|
)
|
|
7,002
|
|
|
6,226
|
|
|
(2,391
|
)
|
|
795
|
|
|
(1,596
|
)
|
||||||
Investment securities exempt from federal income taxes
(1)
|
|
(1,718
|
)
|
|
(10,800
|
)
|
|
(12,518
|
)
|
|
(3,361
|
)
|
|
(952
|
)
|
|
(4,313
|
)
|
||||||
Other interest earning deposits and Federal funds sold
|
|
48
|
|
|
979
|
|
|
1,027
|
|
|
521
|
|
|
246
|
|
|
767
|
|
||||||
Total increase in interest income
|
|
11,085
|
|
|
51,716
|
|
|
62,801
|
|
|
96,405
|
|
|
17,109
|
|
|
113,514
|
|
||||||
Interest Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Money market, NOW, and interest bearing deposits
|
|
921
|
|
|
18,610
|
|
|
19,531
|
|
|
1,197
|
|
|
5,784
|
|
|
6,981
|
|
||||||
Savings deposits
|
|
97
|
|
|
2,366
|
|
|
2,463
|
|
|
52
|
|
|
378
|
|
|
430
|
|
||||||
Certificates of deposits
|
|
2,190
|
|
|
10,401
|
|
|
12,591
|
|
|
3,000
|
|
|
4,695
|
|
|
7,695
|
|
||||||
Short-term borrowings
|
|
(9,864
|
)
|
|
6,106
|
|
|
(3,758
|
)
|
|
2,063
|
|
|
8,439
|
|
|
10,502
|
|
||||||
Long-term borrowings and junior subordinated notes
|
|
6,634
|
|
|
4,273
|
|
|
10,907
|
|
|
(301
|
)
|
|
5,476
|
|
|
5,175
|
|
||||||
Total (decrease) increase in interest expense
|
|
(22
|
)
|
|
41,756
|
|
|
41,734
|
|
|
6,011
|
|
|
24,772
|
|
|
30,783
|
|
||||||
Total increase (decrease) in net interest income
|
|
$
|
11,107
|
|
|
$
|
9,960
|
|
|
$
|
21,067
|
|
|
$
|
90,394
|
|
|
$
|
(7,663
|
)
|
|
$
|
82,731
|
|
|
|
Year Ended
|
|
|
|
|
|||||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
|
Increase/
(Decrease)
|
|
Percentage
Change
|
|||||||
Non-interest income:
|
|
|
|
|
|
|
|
|
|||||||
Mortgage banking revenue
|
|
$
|
63,515
|
|
|
$
|
109,224
|
|
|
$
|
(45,709
|
)
|
|
(41.8
|
)%
|
Lease financing revenue, net
|
|
104,490
|
|
|
86,587
|
|
|
17,903
|
|
|
20.7
|
|
|||
Treasury management fees
|
|
59,735
|
|
|
58,930
|
|
|
805
|
|
|
1.4
|
|
|||
Wealth management fees
|
|
36,383
|
|
|
34,744
|
|
|
1,639
|
|
|
4.7
|
|
|||
Card fees
|
|
21,654
|
|
|
18,596
|
|
|
3,058
|
|
|
16.4
|
|
|||
Capital markets and international banking fees
|
|
12,333
|
|
|
15,708
|
|
|
(3,375
|
)
|
|
(21.5
|
)
|
|||
Consumer and other deposit service fees
|
|
11,923
|
|
|
13,333
|
|
|
(1,410
|
)
|
|
(10.6
|
)
|
|||
Brokerage fees
|
|
4,234
|
|
|
4,321
|
|
|
(87
|
)
|
|
(2.0
|
)
|
|||
Loan service fees
|
|
8,748
|
|
|
8,317
|
|
|
431
|
|
|
5.2
|
|
|||
Increase in cash surrender value of life insurance
|
|
4,979
|
|
|
5,421
|
|
|
(442
|
)
|
|
(8.2
|
)
|
|||
Net (loss) gain on investment securities
|
|
(256
|
)
|
|
562
|
|
|
(818
|
)
|
|
(145.6
|
)
|
|||
Net loss on disposal of other assets
|
|
(796
|
)
|
|
(2,323
|
)
|
|
1,527
|
|
|
65.7
|
|
|||
Other operating income
|
|
15,687
|
|
|
15,954
|
|
|
(267
|
)
|
|
(1.7
|
)
|
|||
Total non-interest income
|
|
$
|
342,629
|
|
|
$
|
369,374
|
|
|
$
|
(26,745
|
)
|
|
(7.2
|
)%
|
•
|
Mortgage banking revenue
decreased
as a result of the national mortgage origination business wind down causing lower mortgage origination volume.
|
•
|
Leasing financing revenues
increased
as a result of higher rental income due to an increase in operating leases, promotional income attributable to our investment in sales and other revenue generating staff, residual gains, and higher earnings from equity investments in leases.
|
•
|
Wealth management fees
increased
due to the addition of new large balance trust and guardianship relationships as well as increases in the fair value of assets under management and advisement as a result of market value increases during the first three quarters of 2018.
|
•
|
Card fees increased due to the addition of new small business and corporate card customers, which resulted in higher credit card volume and interchange revenue, and due to new prepaid card and merchant acquiring card sponsorship programs.
|
•
|
Capital markets and international banking services fees
decreased
due to decreases in swap and syndication activity as a result of lower commercial-related loan volume.
|
•
|
Consumer and other deposit service fees decreased due to less NSF and overdraft fees as customers maintained higher account balances, less monthly service charges as a result of promotions allowing customers to avoid such fees, and lower check printing fees resulting from increased usage of electronic forms of payment.
|
•
|
Non-interest income was also impacted by lower net losses on the disposal of other assets.
|
|
|
Year Ended
|
|
|
|
|
|||||||||
|
|
December 31, 2017
|
|
December 31, 2016
|
|
Increase/
(Decrease)
|
|
Percentage
Change
|
|||||||
Non-interest income:
|
|
|
|
|
|
|
|
|
|||||||
Mortgage banking revenue
|
|
$
|
109,224
|
|
|
$
|
151,716
|
|
|
$
|
(42,492
|
)
|
|
(28.0
|
)%
|
Lease financing revenue, net
|
|
86,587
|
|
|
73,486
|
|
|
13,101
|
|
|
17.8
|
|
|||
Treasury management fees
|
|
58,930
|
|
|
50,620
|
|
|
8,310
|
|
|
16.4
|
|
|||
Wealth management fees
|
|
34,744
|
|
|
32,872
|
|
|
1,872
|
|
|
5.7
|
|
|||
Card fees
|
|
18,596
|
|
|
16,071
|
|
|
2,525
|
|
|
15.7
|
|
|||
Capital markets and international banking fees
|
|
15,708
|
|
|
13,332
|
|
|
2,376
|
|
|
17.8
|
|
|||
Consumer and other deposit service fees
|
|
13,333
|
|
|
13,308
|
|
|
25
|
|
|
0.2
|
|
|||
Brokerage fees
|
|
4,321
|
|
|
4,654
|
|
|
(333
|
)
|
|
(7.2
|
)
|
|||
Loan service fees
|
|
8,317
|
|
|
7,457
|
|
|
860
|
|
|
11.5
|
|
|||
Increase in cash surrender value of life insurance
|
|
5,421
|
|
|
4,075
|
|
|
1,346
|
|
|
33.0
|
|
|||
Net gain on investment securities
|
|
562
|
|
|
447
|
|
|
115
|
|
|
25.7
|
|
|||
Net loss on disposal of other assets
|
|
(2,323
|
)
|
|
(794
|
)
|
|
(1,529
|
)
|
|
192.6
|
|
|||
Other operating income
|
|
15,954
|
|
|
10,906
|
|
|
5,048
|
|
|
46.3
|
|
|||
Total non-interest income
|
|
$
|
369,374
|
|
|
$
|
378,150
|
|
|
$
|
(8,776
|
)
|
|
(2.3
|
)%
|
•
|
Mortgage banking revenue decreased due to lower mortgage origination volume (a result of rising rates) and lower gain on sale margin
. Additionally,
mortgage servicing revenue for the year ended December 31, 2016 was positively impacted by fair value changes of mortgage servicing rights net of the related economic hedge activity.
|
•
|
Leasing financing revenues increased as a result of higher rental income due to increased operating leases, fees from the sale of third-party equipment maintenance contracts driven by contract renewals, consulting revenue, and promotional income.
|
•
|
Treasury management fees increased due to new customer activity as well as the increased customer base as a result of the American Chartered merger.
|
•
|
Card fees increased due to higher debit and credit fees as a result of increased customer activity.
|
•
|
Capital markets and international banking services fees increased due mostly to higher swap and syndication fees as well as foreign currency activity.
|
•
|
Other operating income increased due to the recovery of a low to moderate income real estate investment and the increase in market value of assets held in trust for deferred compensation.
|
|
|
Year Ended
|
|
|
|
|
|||||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
|
Increase/
(Decrease)
|
|
Percentage
Change
|
|||||||
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Salaries and employee benefits
|
|
$
|
427,560
|
|
|
$
|
419,179
|
|
|
$
|
8,381
|
|
|
2.0
|
%
|
Occupancy and equipment expense
|
|
65,445
|
|
|
62,556
|
|
|
2,889
|
|
|
4.6
|
|
|||
Computer services and telecommunication expense
|
|
45,456
|
|
|
40,591
|
|
|
4,865
|
|
|
12.0
|
|
|||
Advertising and marketing expense
|
|
13,420
|
|
|
12,235
|
|
|
1,185
|
|
|
9.7
|
|
|||
Professional and legal expense
|
|
17,533
|
|
|
10,207
|
|
|
7,326
|
|
|
71.8
|
|
|||
Other intangibles amortization expense
|
|
7,852
|
|
|
8,193
|
|
|
(341
|
)
|
|
(4.2
|
)
|
|||
Branch exit and facilities impairment charges
|
|
4,245
|
|
|
8,353
|
|
|
(4,108
|
)
|
|
(49.2
|
)
|
|||
Net loss recognized on other real estate owned and other related expense
|
|
2,184
|
|
|
1,344
|
|
|
840
|
|
|
62.5
|
|
|||
Loss on extinguishment of debt
|
|
11,898
|
|
|
—
|
|
|
11,898
|
|
|
100.0
|
|
|||
Goodwill impairment loss
|
|
3,623
|
|
|
—
|
|
|
3,623
|
|
|
100.0
|
|
|||
Other operating expenses
|
|
81,844
|
|
|
98,685
|
|
|
(16,841
|
)
|
|
(17.1
|
)
|
|||
Total non-interest expenses
|
|
$
|
681,060
|
|
|
$
|
661,343
|
|
|
$
|
19,717
|
|
|
3.0
|
%
|
•
|
Salaries and employee benefits expense was impacted by increased merger related and repositioning expenses mostly due to severance expenses related to the national mortgage origination business wind down, which in turn, was partly offset by the staff reductions related to the wind down. Excluding the merger related and repositioning expenses and impact from the wind down, the increase in salaries and employee benefits expense was due to the following:
|
•
|
Increased salaries related to the investment in sales and other revenue generating staff at our Leasing Segment and annual salary increases; and
|
•
|
Higher health insurance costs as a result of an increase in claims.
|
•
|
Occupancy and equipment expense
increased
due to higher building and software depreciation.
|
•
|
Computer services and telecommunication expense increased due to higher merger related and repositioning expenses as well as previous investments in new technology.
|
•
|
Professional and legal expense
increased
due to more merger related expenses, case settlements, and other legal and professional fees.
|
•
|
Branch exit and facilities impairment charges decreased as a result of the decrease in merger related and repositioning expenses. The charges in 2018 include the costs related to the closing of our mortgage offices due to the wind down, and the 2017 charges include the costs related to the closing of nine branches in that year.
|
•
|
Non-interest expense was also impacted by a $11.9 million loss on extinguishment of debt due to the redemptions of higher-cost junior subordinated notes held by American Chartered Statutory Trust I, American Chartered Statutory Trust II, TAYC Capital Trust II, and Coal City Capital Trust I and by a $3.6 million goodwill impairment loss as a result of the national mortgage origination business wind down.
|
•
|
Other operating expenses
decreased
due to the decline in mortgage volume related expenses, a result of the national mortgage origination business wind down.
|
|
|
Year Ended
|
|
|
|
|
|||||||||
|
|
December 31, 2017
|
|
December 31, 2016
|
|
Increase/
(Decrease)
|
|
Percentage
Change
|
|||||||
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Salaries and employee benefits
|
|
$
|
419,179
|
|
|
$
|
400,501
|
|
|
$
|
18,678
|
|
|
4.7
|
%
|
Occupancy and equipment expense
|
|
62,556
|
|
|
57,130
|
|
|
5,426
|
|
|
9.5
|
|
|||
Computer services and telecommunication expense
|
|
40,591
|
|
|
43,468
|
|
|
(2,877
|
)
|
|
(6.6
|
)
|
|||
Advertising and marketing expense
|
|
12,235
|
|
|
11,971
|
|
|
264
|
|
|
2.2
|
|
|||
Professional and legal expense
|
|
10,207
|
|
|
12,879
|
|
|
(2,672
|
)
|
|
(20.7
|
)
|
|||
Other intangibles amortization expense
|
|
8,193
|
|
|
7,305
|
|
|
888
|
|
|
12.2
|
|
|||
Branch exit and facilities impairment charges (recovery)
|
|
8,353
|
|
|
(2,709
|
)
|
|
11,062
|
|
|
408.3
|
|
|||
Net loss (gain) recognized on other real estate owned and other related expense
|
|
1,344
|
|
|
(1,599
|
)
|
|
2,943
|
|
|
184.1
|
|
|||
Other operating expenses
|
|
98,685
|
|
|
94,152
|
|
|
4,533
|
|
|
4.8
|
|
|||
Total non-interest expenses
|
|
$
|
661,343
|
|
|
$
|
623,098
|
|
|
$
|
38,245
|
|
|
6.1
|
%
|
•
|
Salaries and employee benefits expense increased due to new hires, annual pay increases, and the full year impact of the increased staff from the American Chartered merger. In addition, the Company recognized $2.7 million in one-time bonuses in 2017 as a result of the enactment of the TCJ Act. These increases were partly offset by a decrease in mortgage volume related commissions.
|
•
|
Occupancy and equipment expense increased due to higher depreciation and property tax expenses mainly the result of the American Chartered merger.
|
•
|
Computer services and telecommunication expense decreased due to less merger expenses related to the American Chartered merger.
|
•
|
Professional and legal expense decreased due to less merger related expenses and legal fees partly offset by higher consulting fees.
|
•
|
Branch exit and facilities impairment charges increased as a result of the closing of nine branches in 2017. The prior year included a reversal of an exit cost due to a favorable lease termination on a branch acquired through the Taylor Capital merger.
|
•
|
Non-interest expense was also impacted by net losses on other real estate properties compared to net gains recognized in the prior year.
|
•
|
Other operating expenses increased due to a $7.5 million contribution to the MB Financial Charitable Foundation (compared to a $4.0 million contribution in 2016) and higher FDIC premiums as a result of a larger balance sheet.
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Merger related and repositioning expenses:
|
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
|
$
|
28,753
|
|
|
$
|
3,536
|
|
|
$
|
13,327
|
|
Occupancy and equipment expense
|
|
478
|
|
|
129
|
|
|
207
|
|
|||
Computer services and telecommunication expense
|
|
2,947
|
|
|
247
|
|
|
4,702
|
|
|||
Advertising and marketing expense
|
|
338
|
|
|
5
|
|
|
123
|
|
|||
Professional and legal expense
|
|
4,707
|
|
|
143
|
|
|
2,037
|
|
|||
Branch exit and facilities impairment charges
|
|
4,245
|
|
|
6,594
|
|
|
(2,864
|
)
|
|||
Contingent consideration expense
(1)
|
|
2,000
|
|
|
(454
|
)
|
|
3,703
|
|
|||
Goodwill impairment loss
|
|
3,623
|
|
|
—
|
|
|
—
|
|
|||
Other operating expenses
|
|
382
|
|
|
(253
|
)
|
|
2,477
|
|
|||
Total merger related and repositioning expenses
|
|
$
|
47,473
|
|
|
$
|
9,947
|
|
|
$
|
23,712
|
|
(1)
|
Resides in other operating expenses in the consolidated statements of operations.
|
|
Year Ended
|
||||||||||
|
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Income before income taxes - as reported
|
$
|
252,171
|
|
|
$
|
288,815
|
|
|
$
|
253,380
|
|
Tax at Federal statutory rate (21% for 2018 and 35% for 2017 and 2016)
|
52,956
|
|
|
101,085
|
|
|
88,683
|
|
|||
Increase (decrease) due to:
|
|
|
|
|
|
||||||
Tax exempt income, net
|
(10,754
|
)
|
|
(19,053
|
)
|
|
(19,646
|
)
|
|||
State tax expense, net of Federal impact
|
13,054
|
|
|
12,695
|
|
|
10,030
|
|
|||
Other items, net
|
2,357
|
|
|
1,397
|
|
|
1,631
|
|
|||
Tax expense before discrete items
|
57,613
|
|
|
96,124
|
|
|
80,698
|
|
|||
Income tax rate before discrete items (effective tax rate)
|
22.8
|
%
|
|
33.3
|
%
|
|
31.8
|
%
|
|||
Discrete tax expense (benefit) items
(1)
|
(5,616
|
)
|
|
(2,682
|
)
|
|
(2,954
|
)
|
|||
Discrete tax benefit corporate Federal tax rate changes
(2)
|
(13,741
|
)
|
|
(104,239
|
)
|
|
—
|
|
|||
Discrete tax benefit corporate state tax rate changes
(3)
|
—
|
|
|
(2,324
|
)
|
|
—
|
|
|||
Discrete tax expense (benefit) merger related items
(4)
|
—
|
|
|
(2,104
|
)
|
|
1,500
|
|
|||
Income tax (benefit) expense - as reported
|
$
|
38,256
|
|
|
$
|
(15,225
|
)
|
|
$
|
79,244
|
|
Income tax rate
|
15.2
|
%
|
|
(5.3
|
)%
|
|
31.3
|
%
|
(1)
|
Includes tax benefits on the vesting of restricted shares, exercise of options, and other compensation as well as non-deductible merger expenses, a $5.2 million decrease in state income tax accruals due to income allocation to low income tax rate jurisdictions for the fourth quarter of 2018, and a $2.1 million increase in state income tax accruals due to income allocation to high income tax rate jurisdictions for the fourth quarter of 2017.
|
(2)
|
Includes the impact of the Federal income tax rate decrease due to the TCJ Act (enacted on December 22, 2017) on our net deferred tax liabilities. Amounts for 2018 represent re-measurement adjustments of our net deferred tax liabilities.
|
(3)
|
Includes tax benefit due to the impact of the Illinois state income tax rate increase (effective July 1, 2017) on our deferred tax assets.
|
(4)
|
Includes reversals of a tax liability no longer needed specifically related to two entities we acquired and certain non-deductible merger related items.
|
•
|
Cash and cash equivalents
increased
by
$71.2 million
, or
12.3%
, from
December 31, 2017
to
$650.4 million
at
December 31, 2018
due to cash from new prepaid card sponsorship programs.
|
•
|
Investment securities
increased
$400.9 million
, or
16.2%
, from
December 31, 2017
to
$2.9 billion
at
December 31, 2018
due to the purchase of residential mortgage-backed securities as the increase in interest rates provided an opportunity to make strategic investments.
|
•
|
Loans held for sale decreased
$503.0 million
, or
91.7%
, from
December 31, 2017
to
$45.6 million
at
December 31, 2018
due to the discontinuation of our national mortgage origination business.
|
•
|
Total loans, excluding purchased credit-impaired loans and loans held for sale,
increased
from
December 31, 2017
to
December 31, 2018
by
$104.8 million
, or
0.8%
, driven by increases in commercial, construction, and indirect vehicle loan balances partly offset by decreases in commercial real estate loan balances.
|
•
|
Lease investments, net, increased by
$78.7 million
, or
19.2%
, due to increased originations of operating leases.
|
•
|
Total deposits
decreased
by
$304.2 million
, or
2.0%
, to
$14.7 billion
at
December 31, 2018
from
$15.0 billion
at
December 31, 2017
, due to decreases in non-interest bearing deposits and brokered certificates of deposit.
|
•
|
Total borrowings
increased
by
$363.2 million
, or
23.0%
, to
$1.9 billion
at
December 31, 2018
. The increase in total borrowings was due to the increase in Federal funds purchased to offset the decrease in deposits and to fund loan growth. In addition, the increase in Federal funds purchased was partly offset by the redemption of higher-cost junior subordinated notes held by American Chartered Statutory Trust I, American Chartered Statutory Trust II, TAYC Capital Trust II, Coal City Capital Trust I, and FOBB Statutory Trust III.
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||||
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||||||
Available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury securities
|
|
$
|
75,139
|
|
|
$
|
75,141
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. Government sponsored agencies and enterprises
|
|
5,076
|
|
|
5,024
|
|
|
23,013
|
|
|
23,007
|
|
|
23,267
|
|
|
23,415
|
|
||||||
States and political subdivisions
|
|
332,048
|
|
|
341,477
|
|
|
363,813
|
|
|
379,325
|
|
|
376,541
|
|
|
391,365
|
|
||||||
Residential mortgage-backed securities
|
|
1,414,335
|
|
|
1,402,453
|
|
|
861,594
|
|
|
852,699
|
|
|
988,744
|
|
|
983,684
|
|
||||||
Commercial mortgage-backed securities
|
|
31,572
|
|
|
31,587
|
|
|
71,554
|
|
|
72,035
|
|
|
91,949
|
|
|
93,008
|
|
||||||
Corporate bonds
|
|
—
|
|
|
—
|
|
|
70,155
|
|
|
70,197
|
|
|
193,164
|
|
|
193,895
|
|
||||||
Equity securities
(1)
|
|
—
|
|
|
—
|
|
|
11,236
|
|
|
11,063
|
|
|
11,000
|
|
|
10,828
|
|
||||||
Total Available for Sale
|
|
1,858,170
|
|
|
1,855,682
|
|
|
1,401,365
|
|
|
1,408,326
|
|
|
1,684,665
|
|
|
1,696,195
|
|
||||||
Held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
States and political subdivisions
|
|
887,028
|
|
|
904,845
|
|
|
878,400
|
|
|
910,512
|
|
|
910,608
|
|
|
929,178
|
|
||||||
Residential mortgage-backed securities
|
|
14,656
|
|
|
14,815
|
|
|
80,682
|
|
|
81,943
|
|
|
159,142
|
|
|
164,562
|
|
||||||
Total Held to Maturity
|
|
901,684
|
|
|
919,660
|
|
|
959,082
|
|
|
992,455
|
|
|
1,069,750
|
|
|
1,093,740
|
|
||||||
Total
|
|
$
|
2,759,854
|
|
|
$
|
2,775,342
|
|
|
$
|
2,360,447
|
|
|
$
|
2,400,781
|
|
|
$
|
2,754,415
|
|
|
$
|
2,789,935
|
|
(1)
|
Reflected in marketable equity securities on the consolidated balance sheet following the adoption of the new investments in equity securities guidance on January 1, 2018.
|
|
|
Due in One
Year or Less
|
|
Due after One
Year through
Five Years
|
|
Due after Five
Years through
Ten Years
|
|
Due after
Ten Years
|
||||||||||||||||||||
|
|
Balance
|
|
Weighted
Average
Yield
|
|
Balance
|
|
Weighted
Average
Yield
|
|
Balance
|
|
Weighted
Average
Yield
|
|
Balance
|
|
Weighted
Average
Yield
|
||||||||||||
Available for sale (fair value)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury securities
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
75,141
|
|
|
2.65
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
U.S. Government sponsored agencies and enterprises
|
|
—
|
|
|
—
|
|
|
5,024
|
|
|
1.96
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
States and political subdivision
(1)
|
|
44,613
|
|
|
4.21
|
|
|
124,087
|
|
|
4.04
|
|
|
35,394
|
|
|
3.41
|
|
|
137,383
|
|
|
4.62
|
|
||||
Residential mortgage-backed securities
(2)
|
|
27
|
|
|
2.68
|
|
|
40,854
|
|
|
2.06
|
|
|
196,266
|
|
|
2.21
|
|
|
1,165,306
|
|
|
3.12
|
|
||||
Commercial mortgage-backed securities
(2)
|
|
18,881
|
|
|
3.65
|
|
|
1
|
|
|
6.13
|
|
|
—
|
|
|
—
|
|
|
12,705
|
|
|
3.81
|
|
||||
Total Available for Sale
|
|
63,521
|
|
|
4.04
|
|
|
245,107
|
|
|
3.24
|
|
|
231,660
|
|
|
2.40
|
%
|
|
1,315,394
|
|
|
3.28
|
|
||||
Held to maturity (amortized cost)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
States and political subdivision
(1)
|
|
58,826
|
|
|
3.50
|
|
|
153,790
|
|
|
4.16
|
|
|
242,049
|
|
|
4.10
|
|
|
432,363
|
|
|
3.73
|
|
||||
Residential mortgage-backed securities
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,656
|
|
|
4.86
|
|
||||
Total Held to Maturity
|
|
58,826
|
|
|
3.50
|
|
|
153,790
|
|
|
4.16
|
|
|
242,049
|
|
|
4.10
|
|
|
447,019
|
|
|
3.77
|
|
||||
Total
|
|
$
|
122,347
|
|
|
3.78
|
%
|
|
$
|
398,897
|
|
|
3.60
|
%
|
|
$
|
473,709
|
|
|
3.26
|
%
|
|
$
|
1,762,413
|
|
|
3.41
|
%
|
|
|
At December 31,
|
|||||||||||||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|||||||||||||||
Commercial related loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
|
$
|
5,169,763
|
|
|
36
|
%
|
|
$
|
4,786,180
|
|
|
34
|
%
|
|
$
|
4,346,506
|
|
|
34
|
%
|
|
$
|
3,616,286
|
|
|
37
|
%
|
|
$
|
3,245,206
|
|
|
36
|
%
|
Commercial collateralized by assignment of lease payments
|
|
2,084,170
|
|
|
15
|
|
|
2,113,135
|
|
|
15
|
|
|
2,002,976
|
|
|
16
|
|
|
1,779,072
|
|
|
18
|
|
|
1,692,258
|
|
|
18
|
|
|||||
Commercial real estate
|
|
3,720,255
|
|
|
27
|
|
|
4,147,529
|
|
|
30
|
|
|
3,788,016
|
|
|
29
|
|
|
2,695,676
|
|
|
27
|
|
|
2,544,867
|
|
|
28
|
|
|||||
Construction real estate
|
|
506,837
|
|
|
4
|
|
|
406,849
|
|
|
3
|
|
|
518,562
|
|
|
4
|
|
|
252,060
|
|
|
3
|
|
|
247,068
|
|
|
3
|
|
|||||
Total commercial related loans
|
|
11,481,025
|
|
|
82
|
|
|
11,453,693
|
|
|
82
|
|
|
10,656,060
|
|
|
83
|
|
|
8,343,094
|
|
|
85
|
|
|
7,729,399
|
|
|
85
|
|
|||||
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
|
1,397,598
|
|
|
10
|
|
|
1,432,458
|
|
|
10
|
|
|
1,060,828
|
|
|
8
|
|
|
628,169
|
|
|
6
|
|
|
503,287
|
|
|
5
|
|
|||||
Indirect vehicle
|
|
817,108
|
|
|
5
|
|
|
667,928
|
|
|
4
|
|
|
541,680
|
|
|
4
|
|
|
384,095
|
|
|
4
|
|
|
268,840
|
|
|
3
|
|
|||||
Home equity
|
|
172,890
|
|
|
1
|
|
|
219,098
|
|
|
2
|
|
|
266,377
|
|
|
2
|
|
|
216,573
|
|
|
2
|
|
|
251,909
|
|
|
3
|
|
|||||
Other consumer
|
|
82,461
|
|
|
1
|
|
|
73,141
|
|
|
1
|
|
|
80,781
|
|
|
1
|
|
|
80,661
|
|
|
1
|
|
|
78,137
|
|
|
1
|
|
|||||
Total other loans
|
|
2,470,057
|
|
|
17
|
|
|
2,392,625
|
|
|
17
|
|
|
1,949,666
|
|
|
15
|
|
|
1,309,498
|
|
|
13
|
|
|
1,102,173
|
|
|
12
|
|
|||||
Gross loans, excluding purchased credit-impaired loans
|
|
13,951,082
|
|
|
99
|
|
|
13,846,318
|
|
|
99
|
|
|
12,605,726
|
|
|
98
|
|
|
9,652,592
|
|
|
98
|
|
|
8,831,572
|
|
|
97
|
|
|||||
Purchased credit-impaired loans
|
|
84,101
|
|
|
1
|
|
|
119,744
|
|
|
1
|
|
|
163,077
|
|
|
2
|
|
|
141,406
|
|
|
2
|
|
|
251,645
|
|
|
3
|
|
|||||
Total loans
|
|
$
|
14,035,183
|
|
|
100
|
%
|
|
$
|
13,966,062
|
|
|
100
|
%
|
|
$
|
12,768,803
|
|
|
100
|
%
|
|
$
|
9,793,998
|
|
|
100
|
%
|
|
$
|
9,083,217
|
|
|
100
|
%
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||
|
|
Legacy
(1)
|
Acquired
(2)
|
Total
|
|
% of
Total
|
|
Legacy
(1)
|
Acquired
(2)
|
Total
|
|
% of
Total
|
||||||||||||||
Commercial related credits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans
|
|
$
|
5,067,792
|
|
$
|
101,971
|
|
$
|
5,169,763
|
|
|
36
|
%
|
|
$
|
4,532,153
|
|
$
|
254,027
|
|
$
|
4,786,180
|
|
|
34
|
%
|
Commercial loans collateralized by assignment of lease payments
|
|
2,071,846
|
|
12,324
|
|
2,084,170
|
|
|
15
|
|
|
2,077,972
|
|
35,163
|
|
2,113,135
|
|
|
15
|
|
||||||
Commercial real estate
|
|
3,259,887
|
|
460,368
|
|
3,720,255
|
|
|
27
|
|
|
3,370,590
|
|
776,939
|
|
4,147,529
|
|
|
30
|
|
||||||
Construction real estate
|
|
505,250
|
|
1,587
|
|
506,837
|
|
|
4
|
|
|
401,189
|
|
5,660
|
|
406,849
|
|
|
3
|
|
||||||
Total commercial related credits
|
|
10,904,775
|
|
576,250
|
|
11,481,025
|
|
|
82
|
|
|
10,381,904
|
|
1,071,789
|
|
11,453,693
|
|
|
82
|
|
||||||
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential real estate
|
|
1,226,289
|
|
171,309
|
|
1,397,598
|
|
|
10
|
|
|
1,212,120
|
|
220,338
|
|
1,432,458
|
|
|
10
|
|
||||||
Indirect vehicle
|
|
815,927
|
|
1,181
|
|
817,108
|
|
|
5
|
|
|
666,443
|
|
1,485
|
|
667,928
|
|
|
4
|
|
||||||
Home equity
|
|
148,274
|
|
24,616
|
|
172,890
|
|
|
1
|
|
|
165,297
|
|
53,801
|
|
219,098
|
|
|
2
|
|
||||||
Other consumer loans
|
|
82,190
|
|
271
|
|
82,461
|
|
|
1
|
|
|
72,742
|
|
399
|
|
73,141
|
|
|
1
|
|
||||||
Total other loans
|
|
2,272,680
|
|
197,377
|
|
2,470,057
|
|
|
17
|
|
|
2,116,602
|
|
276,023
|
|
2,392,625
|
|
|
17
|
|
||||||
Total loans excluding purchased credit-impaired loans
|
|
13,177,455
|
|
773,627
|
|
13,951,082
|
|
|
99
|
|
|
12,498,506
|
|
1,347,812
|
|
13,846,318
|
|
|
99
|
|
||||||
Purchased credit-impaired loans
|
|
55,933
|
|
28,168
|
|
84,101
|
|
|
1
|
|
|
79,066
|
|
40,678
|
|
119,744
|
|
|
1
|
|
||||||
Total loans
|
|
$
|
13,233,388
|
|
$
|
801,795
|
|
$
|
14,035,183
|
|
|
100
|
%
|
|
$
|
12,577,572
|
|
$
|
1,388,490
|
|
$
|
13,966,062
|
|
|
100
|
%
|
(1)
|
Legacy loans include all loans other than those acquired through the Taylor Capital and American Chartered mergers, including loans acquired in connection with our FDIC-assisted transactions and our other acquisition transactions, as well as new loans originated subsequent to the Taylor Capital and American Chartered mergers and Taylor Capital and American Chartered loans that have been renewed.
|
(2)
|
Represents loans acquired through the Taylor Capital and American Chartered mergers that have not yet been renewed. These balances will decrease to zero over time.
|
|
|
|
|
Due in One Year
Or Less
|
|
Due after One Year
Through Five Years
|
|
Due after
Five Years
|
|
|
||||||||||||||||||||||
|
|
Non-Performing
|
|
Fixed
|
|
Floating
|
|
Fixed
|
|
Floating
|
|
Fixed
|
|
Floating
|
|
|
||||||||||||||||
|
|
Loans
(1)
|
|
Rate
(2)
|
|
Rate
(2)
|
|
Rate
(2)
|
|
Rate
(2)
|
|
Rate
(2)
|
|
Rate
(2)
|
|
Total
|
||||||||||||||||
Commercial loans
|
|
$
|
16,509
|
|
|
$
|
155,403
|
|
|
$
|
1,516,591
|
|
|
$
|
428,769
|
|
|
$
|
2,740,467
|
|
|
$
|
109,065
|
|
|
$
|
202,959
|
|
|
$
|
5,169,763
|
|
Commercial loans collateralized by assignment of lease payments
|
|
3,949
|
|
|
188,082
|
|
|
1,246
|
|
|
1,746,371
|
|
|
1,345
|
|
|
143,177
|
|
|
—
|
|
|
2,084,170
|
|
||||||||
Commercial real estate
|
|
11,205
|
|
|
165,731
|
|
|
395,910
|
|
|
969,537
|
|
|
1,554,315
|
|
|
136,093
|
|
|
487,464
|
|
|
3,720,255
|
|
||||||||
Construction real estate
|
|
—
|
|
|
1,586
|
|
|
161,900
|
|
|
794
|
|
|
288,393
|
|
|
857
|
|
|
53,307
|
|
|
506,837
|
|
||||||||
Residential real estate
|
|
22,156
|
|
|
10,437
|
|
|
385
|
|
|
4,682
|
|
|
626
|
|
|
259,306
|
|
|
1,100,006
|
|
|
1,397,598
|
|
||||||||
Indirect vehicle
|
|
4,176
|
|
|
2,589
|
|
|
—
|
|
|
243,425
|
|
|
—
|
|
|
566,918
|
|
|
—
|
|
|
817,108
|
|
||||||||
Home equity
|
|
12,341
|
|
|
347
|
|
|
7,891
|
|
|
15,434
|
|
|
11,585
|
|
|
22,305
|
|
|
102,987
|
|
|
172,890
|
|
||||||||
Other consumer loans
|
|
35
|
|
|
2,725
|
|
|
11,217
|
|
|
37,420
|
|
|
21,940
|
|
|
—
|
|
|
9,124
|
|
|
82,461
|
|
||||||||
Purchased credit-impaired loans
|
|
—
|
|
|
3,875
|
|
|
11,654
|
|
|
11,826
|
|
|
7,476
|
|
|
44,482
|
|
|
4,788
|
|
|
84,101
|
|
||||||||
Gross loans
|
|
$
|
70,371
|
|
|
$
|
530,775
|
|
|
$
|
2,106,794
|
|
|
$
|
3,458,258
|
|
|
$
|
4,626,147
|
|
|
$
|
1,282,203
|
|
|
$
|
1,960,635
|
|
|
$
|
14,035,183
|
|
(1)
|
Excludes purchased credit-impaired loans. See Note 5 to our Consolidated Financial Statements for further information regarding purchased credit-impaired loans.
|
(2)
|
Excludes non-performing loans.
|
•
|
Pass rated loans (typically performing loans) are accounted for in accordance with ASC Topic 310-20 "Nonrefundable Fees and Other Costs" as these loans do not have evidence of credit deterioration since origination.
|
•
|
Non-impaired loans (typically performing substandard loans) are accounted for in accordance with ASC Topic 310-30 if they display at least some level of credit deterioration since origination.
|
•
|
Impaired loans (typically substandard loans on non-accrual status) are accounted for in accordance with ASC Topic 310-30 as they display significant credit deterioration since origination.
|
|
|
At December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Non-performing loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accruing loans
|
|
$
|
67,616
|
|
|
$
|
71,238
|
|
|
$
|
48,974
|
|
|
$
|
98,065
|
|
|
$
|
82,733
|
|
Loans 90 days or more past due, still accruing interest
|
|
2,755
|
|
|
5,570
|
|
|
10,378
|
|
|
6,596
|
|
|
4,354
|
|
|||||
Total non-performing loans
|
|
70,371
|
|
|
76,808
|
|
|
59,352
|
|
|
104,661
|
|
|
87,087
|
|
|||||
Other real estate owned
|
|
9,182
|
|
|
9,736
|
|
|
26,279
|
|
|
31,553
|
|
|
19,198
|
|
|||||
Repossessed assets
|
|
990
|
|
|
589
|
|
|
322
|
|
|
81
|
|
|
93
|
|
|||||
Total non-performing assets
|
|
$
|
80,543
|
|
|
$
|
87,133
|
|
|
$
|
85,953
|
|
|
$
|
136,295
|
|
|
$
|
106,378
|
|
Purchased credit-impaired loans
|
|
$
|
84,101
|
|
|
$
|
119,744
|
|
|
$
|
163,077
|
|
|
$
|
141,406
|
|
|
$
|
251,645
|
|
Total allowance for loan and lease losses
|
|
$
|
161,578
|
|
|
$
|
157,710
|
|
|
$
|
139,366
|
|
|
$
|
128,140
|
|
|
$
|
110,026
|
|
Accruing restructured loans
(1)
|
|
22,793
|
|
|
28,554
|
|
|
32,687
|
|
|
26,991
|
|
|
15,603
|
|
|||||
Total non-performing loans to total loans
|
|
0.50
|
%
|
|
0.55
|
%
|
|
0.46
|
%
|
|
1.07
|
%
|
|
0.96
|
%
|
|||||
Total non-performing assets to total assets
|
|
0.40
|
|
|
0.43
|
|
|
0.45
|
|
|
0.87
|
|
|
0.73
|
|
|||||
Allowance for loan and lease losses to non-performing loans
|
|
229.61
|
|
|
205.33
|
|
|
234.81
|
|
|
122.43
|
|
|
126.34
|
|
(1)
|
Accruing restructured loans consists primarily of loans that have been modified and are performing in accordance with those modified terms.
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Beginning balance
|
|
$
|
9,736
|
|
|
$
|
26,279
|
|
|
$
|
31,553
|
|
Transfers in at fair value less estimated costs to sell
|
|
5,260
|
|
|
6,686
|
|
|
4,945
|
|
|||
Acquired from business combination
|
|
—
|
|
|
—
|
|
|
3,960
|
|
|||
Capitalized other real estate owned costs
|
|
—
|
|
|
—
|
|
|
96
|
|
|||
Fair value adjustments
|
|
(975
|
)
|
|
(2,277
|
)
|
|
(1,854
|
)
|
|||
Net gains on sales of other real estate owned
|
|
163
|
|
|
1,470
|
|
|
3,496
|
|
|||
Cash received upon disposition
|
|
(5,002
|
)
|
|
(22,422
|
)
|
|
(15,917
|
)
|
|||
Ending balance
|
|
$
|
9,182
|
|
|
$
|
9,736
|
|
|
$
|
26,279
|
|
|
|
At December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
|
||||||
Commercial loans
|
|
$
|
173,147
|
|
|
$
|
89,836
|
|
|
$
|
94,049
|
|
Commercial loans collateralized by assignment of lease payments
|
|
4,460
|
|
|
9,407
|
|
|
3,505
|
|
|||
Commercial real estate
|
|
204,148
|
|
|
74,023
|
|
|
46,990
|
|
|||
Construction real estate
|
|
344
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
$
|
382,099
|
|
|
$
|
173,266
|
|
|
$
|
144,544
|
|
•
|
Commercial loans and lease loans: BBB-rated debt yield and number of civilians unemployed for 27 weeks or more.
|
•
|
Commercial real estate loans and construction loans: Non-performing loans to total loans, Capacity Utilization: Total Industry (percent of capacity), and the Chicago Fed's National Financial Conditions Index.
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Balance at beginning of year
|
|
$
|
159,408
|
|
|
$
|
141,842
|
|
|
$
|
131,508
|
|
|
$
|
114,057
|
|
|
$
|
113,462
|
|
Allowance for unfunded credit commitments acquired through business combination
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,261
|
|
|||||
Utilization of allowance for unfunded credit commitments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(637
|
)
|
|||||
Provision for credit losses
|
|
47,201
|
|
|
21,593
|
|
|
19,563
|
|
|
21,386
|
|
|
12,052
|
|
|||||
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
|
30,173
|
|
|
2,323
|
|
|
2,126
|
|
|
2,993
|
|
|
1,339
|
|
|||||
Commercial collateralized by assignment of lease payments
|
|
7,997
|
|
|
3,397
|
|
|
6,740
|
|
|
2,765
|
|
|
925
|
|
|||||
Commercial real estate
|
|
6,396
|
|
|
1,466
|
|
|
2,851
|
|
|
3,563
|
|
|
11,438
|
|
|||||
Residential real estate
|
|
1,100
|
|
|
932
|
|
|
1,356
|
|
|
1,450
|
|
|
1,718
|
|
|||||
Construction real estate
|
|
—
|
|
|
—
|
|
|
593
|
|
|
34
|
|
|
79
|
|
|||||
Indirect vehicle
|
|
7,656
|
|
|
5,433
|
|
|
3,505
|
|
|
2,980
|
|
|
3,735
|
|
|||||
Home equity
|
|
1,299
|
|
|
1,314
|
|
|
1,662
|
|
|
1,485
|
|
|
3,383
|
|
|||||
Other consumer
|
|
1,321
|
|
|
1,707
|
|
|
1,778
|
|
|
1,941
|
|
|
2,128
|
|
|||||
Total charge-offs
|
|
55,942
|
|
|
16,572
|
|
|
20,611
|
|
|
17,211
|
|
|
24,745
|
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
|
2,222
|
|
|
3,806
|
|
|
2,434
|
|
|
1,749
|
|
|
3,757
|
|
|||||
Commercial collateralized by assignment of lease payments
|
|
1,275
|
|
|
775
|
|
|
550
|
|
|
1,112
|
|
|
939
|
|
|||||
Commercial real estate
|
|
1,956
|
|
|
2,817
|
|
|
3,729
|
|
|
6,723
|
|
|
4,020
|
|
|||||
Residential real estate
|
|
778
|
|
|
724
|
|
|
1,210
|
|
|
515
|
|
|
1,190
|
|
|||||
Construction real estate
|
|
695
|
|
|
774
|
|
|
142
|
|
|
272
|
|
|
252
|
|
|||||
Indirect vehicle
|
|
3,124
|
|
|
2,282
|
|
|
1,837
|
|
|
1,853
|
|
|
1,736
|
|
|||||
Home equity
|
|
817
|
|
|
778
|
|
|
756
|
|
|
579
|
|
|
482
|
|
|||||
Other consumer
|
|
522
|
|
|
589
|
|
|
724
|
|
|
473
|
|
|
288
|
|
|||||
Total recoveries
|
|
11,389
|
|
|
12,545
|
|
|
11,382
|
|
|
13,276
|
|
|
12,664
|
|
|||||
Net charge-offs
|
|
44,553
|
|
|
4,027
|
|
|
9,229
|
|
|
3,935
|
|
|
12,081
|
|
|||||
Allowance for credit losses
|
|
162,056
|
|
|
159,408
|
|
|
141,842
|
|
|
131,508
|
|
|
114,057
|
|
|||||
Allowance for unfunded credit commitments
|
|
(478
|
)
|
|
(1,698
|
)
|
|
(2,476
|
)
|
|
(3,368
|
)
|
|
(4,031
|
)
|
|||||
Allowance for loan and lease losses
|
|
$
|
161,578
|
|
|
$
|
157,710
|
|
|
$
|
139,366
|
|
|
$
|
128,140
|
|
|
$
|
110,026
|
|
Total loans at December 31,
|
|
$
|
14,035,183
|
|
|
$
|
13,966,062
|
|
|
$
|
12,768,803
|
|
|
$
|
9,793,998
|
|
|
$
|
9,083,217
|
|
Ratio of allowance to total loans
|
|
1.15
|
%
|
|
1.13
|
%
|
|
1.09
|
%
|
|
1.31
|
%
|
|
1.21
|
%
|
|||||
Ratio of net charge-offs to average loans
|
|
0.32
|
|
|
0.03
|
|
|
0.09
|
|
|
0.04
|
|
|
0.18
|
|
|
|
At December 31,
|
|||||||||||||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||
|
|
|
|
% of
Total
|
|
|
|
% of
Total
|
|
|
|
% of
Total
|
|
|
|
% of
Total
|
|
|
|
% of
Total
|
|||||||||||||||
|
|
Amount
|
|
Loans
|
|
Amount
|
|
Loans
|
|
Amount
|
|
Loans
|
|
Amount
|
|
Loans
|
|
Amount
|
|
Loans
|
|||||||||||||||
Commercial loans
|
|
$
|
47,883
|
|
|
36
|
%
|
|
$
|
46,176
|
|
|
34
|
%
|
|
$
|
44,483
|
|
|
34
|
%
|
|
$
|
38,751
|
|
|
37
|
%
|
|
$
|
29,079
|
|
|
36
|
%
|
Commercial loans collateralized by assignment of lease payments
|
|
13,323
|
|
|
15
|
|
|
13,007
|
|
|
15
|
|
|
12,238
|
|
|
16
|
|
|
10,434
|
|
|
18
|
|
|
9,962
|
|
|
18
|
|
|||||
Commercial real estate
|
|
63,178
|
|
|
27
|
|
|
62,378
|
|
|
30
|
|
|
51,165
|
|
|
29
|
|
|
44,057
|
|
|
27
|
|
|
41,044
|
|
|
28
|
|
|||||
Residential real estate
|
|
5,113
|
|
|
10
|
|
|
7,012
|
|
|
10
|
|
|
5,971
|
|
|
8
|
|
|
5,734
|
|
|
6
|
|
|
6,646
|
|
|
5
|
|
|||||
Construction real estate
|
|
23,232
|
|
|
4
|
|
|
15,466
|
|
|
3
|
|
|
14,712
|
|
|
4
|
|
|
15,019
|
|
|
3
|
|
|
8,909
|
|
|
3
|
|
|||||
Consumer related loans
|
|
8,370
|
|
|
7
|
|
|
12,494
|
|
|
7
|
|
|
9,931
|
|
|
7
|
|
|
12,068
|
|
|
7
|
|
|
13,103
|
|
|
7
|
|
|||||
Purchased credit-impaired loans
(1)
|
|
479
|
|
|
1
|
|
|
1,177
|
|
|
1
|
|
|
866
|
|
|
2
|
|
|
2,077
|
|
|
2
|
|
|
1,283
|
|
|
3
|
|
|||||
Total
|
|
$
|
161,578
|
|
|
100
|
%
|
|
$
|
157,710
|
|
|
100
|
%
|
|
$
|
139,366
|
|
|
100
|
%
|
|
$
|
128,140
|
|
|
100
|
%
|
|
$
|
110,026
|
|
|
100
|
%
|
(1)
|
Consists of allowance for loan and lease losses for commercial, commercial real estate and construction loans allocated to purchased credit-impaired loans.
|
|
|
At December 31,
|
||||||||||||
|
|
2018
|
|
2017
|
||||||||||
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
Non-interest bearing deposits
|
|
$
|
6,152,163
|
|
|
42
|
%
|
|
$
|
6,381,512
|
|
|
43
|
%
|
Money market, NOW, and interest bearing deposits
|
|
4,982,026
|
|
|
34
|
|
|
4,954,765
|
|
|
33
|
|
||
Savings deposits
|
|
1,191,498
|
|
|
8
|
|
|
1,167,810
|
|
|
8
|
|
||
Certificates of deposit, $100,000 or more
|
|
1,777,594
|
|
|
12
|
|
|
1,890,587
|
|
|
12
|
|
||
Other certificates of deposit
|
|
550,932
|
|
|
4
|
|
|
563,704
|
|
|
4
|
|
||
Total
|
|
$
|
14,654,213
|
|
|
100
|
%
|
|
$
|
14,958,378
|
|
|
100
|
%
|
(1)
|
Includes brokered deposits of
$911.2 million
.
|
(2)
|
Consists of time deposits held in individual retirement accounts (IRAs) and time certificates where the customer has the option to increase the principal balance and maintain the original interest rate.
|
|
|
At or For the Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Federal funds purchased:
|
|
|
|
|
|
|
|
|||||
Average balance outstanding
|
|
$
|
72,568
|
|
|
$
|
89,920
|
|
|
$
|
53,076
|
|
Maximum outstanding at any month-end during the period
|
|
407,816
|
|
|
242,500
|
|
|
77,750
|
|
|||
Balance outstanding at end of period
|
|
407,816
|
|
|
3,250
|
|
|
46,750
|
|
|||
Weighted average interest rate during the period
|
|
2.16
|
%
|
|
1.16
|
%
|
|
0.60
|
%
|
|||
Weighted average interest rate at end of the period
|
|
2.76
|
|
|
1.26
|
|
|
0.80
|
|
|||
Securities sold under agreements to repurchase:
|
|
|
|
|
|
|
|
|||||
Average balance outstanding
|
|
$
|
236,381
|
|
|
$
|
199,661
|
|
|
$
|
202,673
|
|
Maximum outstanding at any month-end during the period
|
|
312,239
|
|
|
232,789
|
|
|
257,901
|
|
|||
Balance outstanding at end of period
|
|
312,239
|
|
|
232,789
|
|
|
237,538
|
|
|||
Weighted average interest rate during the period
|
|
0.48
|
%
|
|
0.22
|
%
|
|
0.21
|
%
|
|||
Weighted average interest rate at end of the period
|
|
0.80
|
|
|
0.27
|
|
|
0.22
|
|
|||
Federal Home Loan Bank advances:
|
|
|
|
|
|
|
|
|||||
Average balance outstanding
|
|
$
|
420,726
|
|
|
$
|
1,267,249
|
|
|
$
|
869,003
|
|
Maximum outstanding at any month-end during the period
|
|
750,000
|
|
|
1,650,000
|
|
|
1,315,000
|
|
|||
Balance outstanding at end of period
|
|
750,000
|
|
|
625,000
|
|
|
1,275,000
|
|
|||
Weighted average interest rate during the period
|
|
1.92
|
%
|
|
1.05
|
%
|
|
0.38
|
%
|
|||
Weighted average interest rate at end of the period
|
|
2.66
|
|
|
1.31
|
|
|
0.63
|
|
|||
Correspondent bank line of credit:
|
|
|
|
|
|
|
|
|||||
Average balance outstanding
|
|
$
|
—
|
|
|
$
|
1,671
|
|
|
$
|
6,808
|
|
Maximum outstanding at any month-end during the period
|
|
—
|
|
|
10,000
|
|
|
25,000
|
|
|||
Balance outstanding at end of period
|
|
—
|
|
|
—
|
|
|
10,000
|
|
|||
Weighted average interest rate during the period
|
|
—
|
%
|
|
2.73
|
%
|
|
2.11
|
%
|
|||
Weighted average interest rate at end of the period
|
|
—
|
|
|
—
|
|
|
2.52
|
|
Contractual Obligations
|
|
Total
|
|
Less than 1
Year
|
|
1 - 3 Years
|
|
3 - 5 Years
|
|
More than 5
Years
|
||||||||||
Time certificates
|
|
$
|
2,328,526
|
|
|
$
|
1,465,426
|
|
|
$
|
757,786
|
|
|
$
|
104,544
|
|
|
$
|
770
|
|
Long-term borrowings
|
|
349,681
|
|
|
38,904
|
|
|
37,299
|
|
|
95,437
|
|
|
178,041
|
|
|||||
Junior subordinated notes issued to capital trusts
(1)
|
|
121,118
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
121,118
|
|
|||||
Operating leases
|
|
54,170
|
|
|
11,902
|
|
|
15,260
|
|
|
9,760
|
|
|
17,248
|
|
|||||
Total
|
|
$
|
2,853,495
|
|
|
$
|
1,516,232
|
|
|
$
|
810,345
|
|
|
$
|
209,741
|
|
|
$
|
317,177
|
|
Commitments to extend credit and letters of credit
|
|
$
|
4,417,786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
May be called for redemption by us at any time. See Note 12 to the audited consolidated financial statements under Item 8. Financial Statements and Supplementary Data.
|
|
|
|
|
|
|
|
|
|
|
Required
To Be Well
|
|||||||||||
|
|
|
|
|
|
Required
For Capital
|
|
Capitalized Under
Prompt Corrective
|
|||||||||||||
|
|
Actual
|
|
Adequacy Purposes
|
|
Action Provisions
|
|||||||||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
Total capital (to risk-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
|
$
|
2,379,813
|
|
|
13.67
|
%
|
|
$
|
1,392,791
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
MB Financial Bank
|
|
2,264,296
|
|
|
13.05
|
|
|
1,388,457
|
|
|
8.00
|
|
|
$
|
1,735,571
|
|
|
10.00
|
%
|
||
Tier 1 capital (to risk-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
|
$
|
1,959,413
|
|
|
11.25
|
%
|
|
$
|
1,044,593
|
|
|
6.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
MB Financial Bank
|
|
1,927,240
|
|
|
11.10
|
|
|
1,041,343
|
|
|
6.00
|
|
|
$
|
1,388,457
|
|
|
8.00
|
%
|
||
Common equity tier 1 capital (to risk-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
|
$
|
1,764,694
|
|
|
10.14
|
%
|
|
$
|
783,445
|
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
MB Financial Bank
|
|
1,925,076
|
|
|
11.09
|
|
|
781,007
|
|
|
4.50
|
|
|
$
|
1,128,121
|
|
|
6.50
|
%
|
||
Tier 1 capital (to average assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
|
$
|
1,959,413
|
|
|
10.50
|
%
|
|
$
|
746,268
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
MB Financial Bank
|
|
1,927,240
|
|
|
10.35
|
|
|
744,676
|
|
|
4.00
|
|
|
$
|
930,845
|
|
|
5.00
|
%
|
Item 7A.
|
Quantitative and Qualitative Disclosures about Market Risk
|
|
|
Time to Maturity or Repricing
|
||||||||||||||||||
|
|
0 – 90
|
|
91 - 365
|
|
1 – 5
|
|
Over 5
|
|
|
||||||||||
|
|
Days
|
|
Days
|
|
Years
|
|
Years
|
|
Total
|
||||||||||
Interest Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest earning deposits with banks
|
|
$
|
145,184
|
|
|
$
|
705
|
|
|
$
|
1,365
|
|
|
$
|
—
|
|
|
$
|
147,254
|
|
Investment securities
|
|
113,264
|
|
|
331,523
|
|
|
1,536,822
|
|
|
900,789
|
|
|
2,882,398
|
|
|||||
Loans held for sale
|
|
45,550
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45,550
|
|
|||||
Loans, including purchased credit-impaired loans
|
|
8,358,671
|
|
|
1,559,968
|
|
|
3,374,590
|
|
|
741,954
|
|
|
14,035,183
|
|
|||||
Total interest earning assets
|
|
$
|
8,662,669
|
|
|
$
|
1,892,196
|
|
|
$
|
4,912,777
|
|
|
$
|
1,642,743
|
|
|
$
|
17,110,385
|
|
Interest Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Money market, NOW, and interest bearing deposits
|
|
$
|
2,331,497
|
|
|
$
|
262,212
|
|
|
$
|
1,010,726
|
|
|
$
|
1,377,591
|
|
|
$
|
4,982,026
|
|
Savings deposits
|
|
211,494
|
|
|
95,124
|
|
|
376,581
|
|
|
508,299
|
|
|
1,191,498
|
|
|||||
Certificates of deposit
|
|
468,778
|
|
|
996,626
|
|
|
862,351
|
|
|
771
|
|
|
2,328,526
|
|
|||||
Short-term borrowings
|
|
1,470,055
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,470,055
|
|
|||||
Long-term borrowings
|
|
8,925
|
|
|
23,145
|
|
|
312,989
|
|
|
4,622
|
|
|
349,681
|
|
|||||
Junior subordinated notes issued to capital trusts
|
|
121,118
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
121,118
|
|
|||||
Total interest bearing liabilities
|
|
$
|
4,611,867
|
|
|
$
|
1,377,107
|
|
|
$
|
2,562,647
|
|
|
$
|
1,891,283
|
|
|
$
|
10,442,904
|
|
Cumulative rate sensitive assets (RSA)
|
|
$
|
8,662,669
|
|
|
$
|
10,554,865
|
|
|
$
|
15,467,642
|
|
|
$
|
17,110,385
|
|
|
$
|
17,110,385
|
|
Cumulative rate sensitive liabilities (RSL)
|
|
4,611,867
|
|
|
5,988,974
|
|
|
8,551,621
|
|
|
10,442,904
|
|
|
10,442,904
|
|
|||||
Cumulative GAP (GAP=RSA-RSL)
|
|
4,050,802
|
|
|
4,565,891
|
|
|
6,916,021
|
|
|
6,667,481
|
|
|
6,667,481
|
|
|||||
RSA/Total assets
|
|
42.87
|
%
|
|
52.23
|
%
|
|
76.55
|
%
|
|
84.68
|
%
|
|
84.68
|
%
|
|||||
RSL/Total assets
|
|
22.82
|
|
|
29.64
|
|
|
42.32
|
|
|
51.68
|
|
|
51.68
|
|
|||||
GAP/Total assets
|
|
20.05
|
|
|
22.60
|
|
|
34.23
|
|
|
33.00
|
|
|
33.00
|
|
|||||
GAP/RSA
|
|
46.76
|
|
|
43.26
|
|
|
44.71
|
|
|
38.97
|
|
|
38.97
|
|
Gradual
|
|
Changes in Net Interest Income Over One Year Horizon
|
||||||||||||
Changes in
|
|
At December 31, 2018
|
|
At December 31, 2017
|
||||||||||
Levels of
|
|
Dollar
|
|
Percentage
|
|
Dollar
|
|
Percentage
|
||||||
Interest Rates
|
|
Change
|
|
Change
|
|
Change
|
|
Change
|
||||||
+2.00%
|
|
$
|
44,026
|
|
|
6.74
|
%
|
|
$
|
46,967
|
|
|
7.33
|
%
|
+1.00%
|
|
22,646
|
|
|
3.47
|
|
|
25,565
|
|
|
3.99
|
|
||
-1.00%
|
|
(27,042
|
)
|
|
(4.14
|
)
|
|
(33,889
|
)
|
|
(5.29
|
)
|
Item 8.
|
Financial Statements and Supplementary Data
|
|
Page
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Mitchell Feiger
|
|
/s/ Randall T. Conte
|
Mitchell Feiger
|
Randall T. Conte
|
|
President and
|
Vice President and
|
|
Chief Executive Officer
|
Chief Financial Officer
|
/s/ RSM US LLP
|
Chicago, Illinois
|
March 1, 2019
|
/s/ RSM US LLP
|
|
We have served as the Company's auditor since 2004.
|
|
Chicago, Illinois
|
March 1, 2019
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
ASSETS
|
|
|
|
|
|
|
||
Cash and due from banks
|
|
$
|
503,153
|
|
|
$
|
397,880
|
|
Interest earning deposits with banks
|
|
147,254
|
|
|
181,341
|
|
||
Total cash and cash equivalents
|
|
650,407
|
|
|
579,221
|
|
||
Investment securities:
|
|
|
|
|
|
|
||
Securities available for sale, at fair value
|
|
1,855,682
|
|
|
1,408,326
|
|
||
Securities held to maturity, at amortized cost ($919,660 and $992,455 fair value at December 31, 2018 and 2017, respectively)
|
|
901,684
|
|
|
959,082
|
|
||
Marketable equity securities, at fair value
|
|
11,075
|
|
|
—
|
|
||
Non-marketable securities - FHLB and FRB stock
|
|
113,957
|
|
|
114,111
|
|
||
Total investment securities
|
|
2,882,398
|
|
|
2,481,519
|
|
||
Loans held for sale
|
|
45,550
|
|
|
548,578
|
|
||
Loans:
|
|
|
|
|
|
|
||
Total loans, excluding purchased credit impaired loans
|
|
13,951,082
|
|
|
13,846,318
|
|
||
Purchased credit impaired loans
|
|
84,101
|
|
|
119,744
|
|
||
Total loans
|
|
14,035,183
|
|
|
13,966,062
|
|
||
Less: Allowance for loan and lease losses
|
|
161,578
|
|
|
157,710
|
|
||
Net loans
|
|
13,873,605
|
|
|
13,808,352
|
|
||
Lease investment, net
|
|
487,776
|
|
|
409,051
|
|
||
Premises and equipment, net
|
|
270,614
|
|
|
286,690
|
|
||
Cash surrender value of life insurance
|
|
208,581
|
|
|
203,602
|
|
||
Goodwill
|
|
999,925
|
|
|
1,003,548
|
|
||
Other intangibles
|
|
46,914
|
|
|
54,766
|
|
||
Mortgage servicing rights, at fair value
|
|
284,898
|
|
|
276,279
|
|
||
Other real estate owned, net
|
|
9,182
|
|
|
9,736
|
|
||
Other real estate owned related to FDIC-assisted transactions
|
|
1,182
|
|
|
4,788
|
|
||
Other assets
|
|
445,994
|
|
|
420,810
|
|
||
Total assets
|
|
$
|
20,207,026
|
|
|
$
|
20,086,940
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
||
LIABILITIES
|
|
|
|
|
|
|
||
Deposits:
|
|
|
|
|
|
|
||
Non-interest bearing
|
|
$
|
6,152,163
|
|
|
$
|
6,381,512
|
|
Interest bearing
|
|
8,502,050
|
|
|
8,576,866
|
|
||
Total deposits
|
|
14,654,213
|
|
|
14,958,378
|
|
||
Short-term borrowings
|
|
1,470,055
|
|
|
861,039
|
|
||
Long-term borrowings
|
|
349,681
|
|
|
505,158
|
|
||
Junior subordinated notes issued to capital trusts
|
|
121,118
|
|
|
211,494
|
|
||
Accrued expenses and other liabilities
|
|
577,111
|
|
|
541,048
|
|
||
Total liabilities
|
|
17,172,178
|
|
|
17,077,117
|
|
||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
||
Preferred stock, ($0.01 par value, authorized 10,000,000 shares at December 31, 2018 and 2017; Series A, 8% perpetual non-cumulative, none issued and outstanding at December 31, 2018 and 4,000,000 shares issued and outstanding at December 31, 2017, $25 liquidation value; Series C, 6% perpetual non-cumulative, 200,000 shares issued and outstanding at December 31, 2018 and 2017, $1,000 liquidation value)
|
|
194,719
|
|
|
309,999
|
|
||
Common stock, ($0.01 par value; authorized 120,000,000 shares at December 31, 2018 and 2017; issued 86,220,872 shares at December 31, 2018 and 85,801,702 shares at December 31, 2017)
|
|
862
|
|
|
858
|
|
||
Additional paid-in capital
|
|
1,708,319
|
|
|
1,691,007
|
|
||
Retained earnings
|
|
1,199,485
|
|
|
1,065,303
|
|
||
Accumulated other comprehensive (loss) income
|
|
(4,864
|
)
|
|
3,584
|
|
||
Less: 1,944,358 and 1,883,810 shares of treasury stock, at cost, at December 31, 2018 and 2017, respectively
|
|
(63,673
|
)
|
|
(60,928
|
)
|
||
Total stockholders’ equity
|
|
3,034,848
|
|
|
3,009,823
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
20,207,026
|
|
|
$
|
20,086,940
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|||
Loans:
|
|
|
|
|
|
|
||||||
Taxable
|
|
$
|
659,993
|
|
|
$
|
587,234
|
|
|
$
|
467,877
|
|
Nontaxable
|
|
9,255
|
|
|
10,665
|
|
|
11,120
|
|
|||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|||
Taxable
|
|
40,201
|
|
|
33,975
|
|
|
35,571
|
|
|||
Nontaxable
|
|
37,776
|
|
|
39,218
|
|
|
42,022
|
|
|||
Other interest earning accounts and Federal funds sold
|
|
2,381
|
|
|
1,354
|
|
|
587
|
|
|||
Total interest income
|
|
749,606
|
|
|
672,446
|
|
|
557,177
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|||
Deposits
|
|
75,270
|
|
|
40,685
|
|
|
25,579
|
|
|||
Short-term borrowings
|
|
10,939
|
|
|
14,697
|
|
|
4,195
|
|
|||
Long-term borrowings and junior subordinated notes
|
|
25,594
|
|
|
14,687
|
|
|
9,512
|
|
|||
Total interest expense
|
|
111,803
|
|
|
70,069
|
|
|
39,286
|
|
|||
Net interest income
|
|
637,803
|
|
|
602,377
|
|
|
517,891
|
|
|||
Provision for credit losses
|
|
47,201
|
|
|
21,593
|
|
|
19,563
|
|
|||
Net interest income after provision for credit losses
|
|
590,602
|
|
|
580,784
|
|
|
498,328
|
|
|||
Non-interest income:
|
|
|
|
|
|
|
|
|
|
|||
Mortgage banking revenue
|
|
63,515
|
|
|
109,224
|
|
|
151,716
|
|
|||
Lease financing revenue, net
|
|
104,490
|
|
|
86,587
|
|
|
73,486
|
|
|||
Treasury management fees
|
|
59,735
|
|
|
58,930
|
|
|
50,620
|
|
|||
Wealth management fees
|
|
36,383
|
|
|
34,744
|
|
|
32,872
|
|
|||
Card fees
|
|
21,654
|
|
|
18,596
|
|
|
16,071
|
|
|||
Capital markets and international banking fees
|
|
12,333
|
|
|
15,708
|
|
|
13,332
|
|
|||
Consumer and other deposit service fees
|
|
11,923
|
|
|
13,333
|
|
|
13,308
|
|
|||
Brokerage fees
|
|
4,234
|
|
|
4,321
|
|
|
4,654
|
|
|||
Loan service fees
|
|
8,748
|
|
|
8,317
|
|
|
7,457
|
|
|||
Increase in cash surrender value of life insurance
|
|
4,979
|
|
|
5,421
|
|
|
4,075
|
|
|||
Net (loss) gain on investment securities
|
|
(256
|
)
|
|
562
|
|
|
447
|
|
|||
Net loss on disposal of other assets
|
|
(796
|
)
|
|
(2,323
|
)
|
|
(794
|
)
|
|||
Other operating income
|
|
15,687
|
|
|
15,954
|
|
|
10,906
|
|
|||
Total non-interest income
|
|
342,629
|
|
|
369,374
|
|
|
378,150
|
|
|||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|||
Salaries and employee benefits expense
|
|
427,560
|
|
|
419,179
|
|
|
400,501
|
|
|||
Occupancy and equipment expense
|
|
65,445
|
|
|
62,556
|
|
|
57,130
|
|
|||
Computer services and telecommunication expense
|
|
45,456
|
|
|
40,591
|
|
|
43,468
|
|
|||
Advertising and marketing expense
|
|
13,420
|
|
|
12,235
|
|
|
11,971
|
|
|||
Professional and legal expense
|
|
17,533
|
|
|
10,207
|
|
|
12,879
|
|
|||
Other intangibles amortization expense
|
|
7,852
|
|
|
8,193
|
|
|
7,305
|
|
|||
Branch exit and facilities impairment charges (recovery)
|
|
4,245
|
|
|
8,353
|
|
|
(2,709
|
)
|
|||
Net loss (gain) recognized on other real estate owned and other related expense
|
|
2,184
|
|
|
1,344
|
|
|
(1,599
|
)
|
|||
Loss on extinguishment of debt
|
|
11,898
|
|
|
—
|
|
|
—
|
|
|||
Goodwill impairment loss
|
|
3,623
|
|
|
—
|
|
|
—
|
|
|||
Other operating expenses
|
|
81,844
|
|
|
98,685
|
|
|
94,152
|
|
|||
Total non-interest expenses
|
|
681,060
|
|
|
661,343
|
|
|
623,098
|
|
|||
Income before income taxes
|
|
252,171
|
|
|
288,815
|
|
|
253,380
|
|
|||
Income tax expense (benefit)
|
|
38,256
|
|
|
(15,225
|
)
|
|
79,244
|
|
|||
Net income
|
|
$
|
213,915
|
|
|
$
|
304,040
|
|
|
$
|
174,136
|
|
Dividends on preferred shares
|
|
12,100
|
|
|
8,007
|
|
|
8,009
|
|
|||
Return from preferred stockholders due to redemption
|
|
(15,280
|
)
|
|
—
|
|
|
—
|
|
|||
Net income available to common stockholders
|
|
$
|
217,095
|
|
|
$
|
296,033
|
|
|
$
|
166,127
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Common share data:
|
|
|
|
|
|
|
|
|
|
|||
Basic earnings per common share
|
|
$
|
2.58
|
|
|
$
|
3.53
|
|
|
$
|
2.16
|
|
Diluted earnings per common share
|
|
2.55
|
|
|
3.49
|
|
|
2.13
|
|
|||
Weighted average common shares outstanding for basic earnings per common share
|
|
84,277,230
|
|
|
83,836,732
|
|
|
76,968,823
|
|
|||
Diluted weighted average common shares outstanding for diluted earnings per
common share
|
|
85,206,300
|
|
|
84,823,456
|
|
|
77,976,121
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
213,915
|
|
|
$
|
304,040
|
|
|
$
|
174,136
|
|
Unrealized holding losses on investment securities, net of reclassification adjustments
|
|
(13,292
|
)
|
|
(1,807
|
)
|
|
(14,317
|
)
|
|||
Reclassification adjustment for amortization of unrealized gains on investment securities transferred to held to maturity from available for sale
|
|
606
|
|
|
(353
|
)
|
|
(2,769
|
)
|
|||
Reclassification adjustments for losses (gains) included in net income
|
|
256
|
|
|
(562
|
)
|
|
(447
|
)
|
|||
Other comprehensive loss, before tax
|
|
(12,430
|
)
|
|
(2,722
|
)
|
|
(17,533
|
)
|
|||
Income tax benefit related to items of other comprehensive loss
|
|
3,075
|
|
|
1,116
|
|
|
6,946
|
|
|||
Other comprehensive loss, net of tax
|
|
(9,355
|
)
|
|
(1,606
|
)
|
|
(10,587
|
)
|
|||
Comprehensive income
|
|
$
|
204,560
|
|
|
$
|
302,434
|
|
|
$
|
163,549
|
|
|
Preferred
Stock |
Common
Stock |
Additional
Paid-in Capital |
Retained
Earnings |
Accumulated
Other Comprehensive Income (Loss), Net of Tax |
Treasury
Stock |
Noncontrolling
Interest |
Total Stock-
holders’ Equity |
||||||||||||||||
Balance at December 31, 2015
|
$
|
115,280
|
|
$
|
756
|
|
$
|
1,280,870
|
|
$
|
731,812
|
|
$
|
15,777
|
|
$
|
(58,504
|
)
|
$
|
1,293
|
|
$
|
2,087,284
|
|
Net income
|
—
|
|
—
|
|
—
|
|
174,136
|
|
—
|
|
—
|
|
151
|
|
174,287
|
|
||||||||
Other comprehensive loss, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
(10,587
|
)
|
—
|
|
—
|
|
(10,587
|
)
|
||||||||
Issuance of common stock due to business combination
|
1,227
|
|
97
|
|
383,775
|
|
—
|
|
—
|
|
—
|
|
—
|
|
385,099
|
|
||||||||
Conversion of Series B preferred stock into common stock
|
(935
|
)
|
—
|
|
935
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Cash dividends declared on preferred shares
|
—
|
|
—
|
|
—
|
|
(8,009
|
)
|
—
|
|
—
|
|
—
|
|
(8,009
|
)
|
||||||||
Cash dividends declared on common shares ($0.74 per share)
|
—
|
|
—
|
|
—
|
|
(59,047
|
)
|
—
|
|
—
|
|
—
|
|
(59,047
|
)
|
||||||||
Restricted common stock activity, net of tax
|
—
|
|
2
|
|
(2,171
|
)
|
—
|
|
—
|
|
2,094
|
|
—
|
|
(75
|
)
|
||||||||
Stock option activity, net of tax
|
—
|
|
1
|
|
(164
|
)
|
—
|
|
—
|
|
(157
|
)
|
—
|
|
(320
|
)
|
||||||||
Repurchase of common shares in connection with employee benefit plans and held in trust for deferred compensation plan
|
—
|
|
—
|
|
(20
|
)
|
—
|
|
—
|
|
(3,817
|
)
|
—
|
|
(3,837
|
)
|
||||||||
Stock-based compensation expense
|
—
|
|
—
|
|
16,868
|
|
—
|
|
—
|
|
—
|
|
—
|
|
16,868
|
|
||||||||
Additional investment in subsidiary
|
—
|
|
—
|
|
(1,267
|
)
|
—
|
|
—
|
|
—
|
|
(1,069
|
)
|
(2,336
|
)
|
||||||||
Distributions to noncontrolling interest
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(118
|
)
|
(118
|
)
|
||||||||
Balance at December 31, 2016
|
$
|
115,572
|
|
$
|
856
|
|
$
|
1,678,826
|
|
$
|
838,892
|
|
$
|
5,190
|
|
$
|
(60,384
|
)
|
$
|
257
|
|
$
|
2,579,209
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income
|
—
|
|
—
|
|
—
|
|
304,040
|
|
—
|
|
—
|
|
—
|
|
304,040
|
|
||||||||
Other comprehensive loss, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,606
|
)
|
—
|
|
—
|
|
(1,606
|
)
|
||||||||
Issuance of preferred stock, net of issuance costs
|
194,719
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
194,719
|
|
||||||||
Conversion of Series B preferred stock into common stock
|
(292
|
)
|
—
|
|
292
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Cash dividends declared on preferred shares
|
—
|
|
—
|
|
—
|
|
(8,007
|
)
|
—
|
|
—
|
|
—
|
|
(8,007
|
)
|
||||||||
Cash dividends declared on common shares ($0.82 per share)
|
—
|
|
—
|
|
—
|
|
(69,622
|
)
|
—
|
|
—
|
|
—
|
|
(69,622
|
)
|
||||||||
Restricted common stock activity, net of tax
|
—
|
|
—
|
|
(6,820
|
)
|
—
|
|
—
|
|
3,549
|
|
—
|
|
(3,271
|
)
|
||||||||
Stock option activity, net of tax
|
—
|
|
2
|
|
1,039
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,041
|
|
||||||||
Repurchase of common shares in connection with employee benefit plans and held in trust for deferred compensation plan
|
—
|
|
—
|
|
764
|
|
—
|
|
—
|
|
(4,093
|
)
|
—
|
|
(3,329
|
)
|
||||||||
Stock-based compensation expense
|
—
|
|
—
|
|
17,476
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17,476
|
|
||||||||
Additional investment in subsidiary
|
—
|
|
—
|
|
(570
|
)
|
—
|
|
—
|
|
—
|
|
(257
|
)
|
(827
|
)
|
||||||||
Balance at December 31, 2017
|
$
|
309,999
|
|
$
|
858
|
|
$
|
1,691,007
|
|
$
|
1,065,303
|
|
$
|
3,584
|
|
$
|
(60,928
|
)
|
$
|
—
|
|
$
|
3,009,823
|
|
Cumulative effect of accounting changes
|
—
|
|
—
|
|
—
|
|
(1,204
|
)
|
907
|
|
—
|
|
—
|
|
(297
|
)
|
||||||||
Net income
|
—
|
|
—
|
|
—
|
|
213,915
|
|
—
|
|
—
|
|
—
|
|
213,915
|
|
||||||||
Other comprehensive loss, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
(9,355
|
)
|
—
|
|
—
|
|
(9,355
|
)
|
||||||||
Redemption of preferred stock
|
(115,280
|
)
|
—
|
|
—
|
|
15,280
|
|
—
|
|
—
|
|
—
|
|
(100,000
|
)
|
||||||||
Cash dividends declared on preferred shares
|
—
|
|
—
|
|
—
|
|
(12,100
|
)
|
—
|
|
—
|
|
—
|
|
(12,100
|
)
|
||||||||
Cash dividends declared on common shares ($0.96 per share)
|
—
|
|
—
|
|
—
|
|
(81,709
|
)
|
—
|
|
—
|
|
—
|
|
(81,709
|
)
|
||||||||
Restricted common stock activity, net of tax
|
—
|
|
2
|
|
(3,924
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(3,922
|
)
|
||||||||
Stock option activity, net of tax
|
—
|
|
2
|
|
1,449
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,451
|
|
||||||||
Repurchase of common shares in connection with employee benefit plans and held in trust for deferred compensation plan
|
—
|
|
—
|
|
1,060
|
|
—
|
|
—
|
|
(2,745
|
)
|
—
|
|
(1,685
|
)
|
||||||||
Stock-based compensation expense
|
—
|
|
—
|
|
18,727
|
|
—
|
|
—
|
|
—
|
|
—
|
|
18,727
|
|
||||||||
Balance at December 31, 2018
|
$
|
194,719
|
|
$
|
862
|
|
$
|
1,708,319
|
|
$
|
1,199,485
|
|
$
|
(4,864
|
)
|
$
|
(63,673
|
)
|
$
|
—
|
|
$
|
3,034,848
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash Flows From Operating Activities
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
213,915
|
|
|
$
|
304,040
|
|
|
$
|
174,136
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Depreciation of premises and equipment and leased equipment
|
|
114,252
|
|
|
96,154
|
|
|
75,013
|
|
|||
Facilities impairment charges
|
|
4,245
|
|
|
8,353
|
|
|
(2,709
|
)
|
|||
Compensation expense for share-based payment plans
|
|
18,727
|
|
|
17,476
|
|
|
16,868
|
|
|||
Loss (gain) on sales of premises and equipment and leased equipment
|
|
721
|
|
|
(765
|
)
|
|
783
|
|
|||
Amortization of other intangibles
|
|
7,852
|
|
|
8,193
|
|
|
7,305
|
|
|||
Provision for credit losses
|
|
47,201
|
|
|
21,593
|
|
|
19,563
|
|
|||
Deferred income tax expense (benefit)
|
|
30,321
|
|
|
(33,493
|
)
|
|
45,917
|
|
|||
Amortization of premiums and discounts on investment securities, net
|
|
33,214
|
|
|
39,332
|
|
|
47,042
|
|
|||
Accretion of premiums and discounts on loans, net
|
|
(16,585
|
)
|
|
(27,840
|
)
|
|
(29,211
|
)
|
|||
Net loss (gain) on investment securities
|
|
256
|
|
|
(562
|
)
|
|
(447
|
)
|
|||
Proceeds from sale of loans held for sale
|
|
2,511,756
|
|
|
5,010,415
|
|
|
6,687,670
|
|
|||
Origination of loans held for sale
|
|
(2,110,088
|
)
|
|
(4,829,690
|
)
|
|
(6,630,361
|
)
|
|||
Net loss (gain) on sale of loans held for sale
|
|
11,137
|
|
|
15,834
|
|
|
(28,896
|
)
|
|||
Origination of mortgage servicing rights
|
|
(30,843
|
)
|
|
(59,810
|
)
|
|
(68,428
|
)
|
|||
Change in fair value and amortization/prepayments of mortgage servicing rights
|
|
22,385
|
|
|
22,407
|
|
|
3,666
|
|
|||
Net loss (gain) on other real estate owned
|
|
1,274
|
|
|
920
|
|
|
(2,358
|
)
|
|||
Increase in cash surrender value of life insurance
|
|
(4,979
|
)
|
|
(5,421
|
)
|
|
(4,075
|
)
|
|||
Loss on extinguishment of debt
|
|
11,898
|
|
|
—
|
|
|
—
|
|
|||
Goodwill impairment loss
|
|
3,623
|
|
|
—
|
|
|
—
|
|
|||
Increase in other assets, net
|
|
(30,194
|
)
|
|
(56,830
|
)
|
|
(116,961
|
)
|
|||
Increase in other liabilities, net
|
|
2,111
|
|
|
43,654
|
|
|
57,112
|
|
|||
Net cash provided by operating activities
|
|
842,199
|
|
|
573,960
|
|
|
251,629
|
|
|||
Cash Flows From Investing Activities
|
|
|
|
|
|
|
|
|
|
|||
Proceeds from sales of investment securities available for sale
|
|
2,610
|
|
|
8,804
|
|
|
28,024
|
|
|||
Proceeds from maturities and calls of investment securities available for sale
|
|
387,702
|
|
|
357,210
|
|
|
336,357
|
|
|||
Purchase of investment securities available for sale
|
|
(876,643
|
)
|
|
(108,590
|
)
|
|
(17,702
|
)
|
|||
Proceeds from maturities and calls of investment securities held to maturity
|
|
105,018
|
|
|
151,979
|
|
|
174,201
|
|
|||
Purchase of investment securities held to maturity
|
|
(62,485
|
)
|
|
(54,206
|
)
|
|
(31,410
|
)
|
|||
Purchase of marketable equity securities
|
|
(442
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from sales of marketable equity securities
|
|
178
|
|
|
—
|
|
|
—
|
|
|||
Purchase of non-marketable securities - FHLB and FRB stock
|
|
(76,020
|
)
|
|
(135,498
|
)
|
|
(60,316
|
)
|
|||
Redemption of non-marketable securities - FHLB and FRB stock
|
|
76,174
|
|
|
164,663
|
|
|
47,273
|
|
|||
Net increase in loans
|
|
(16,851
|
)
|
|
(1,151,104
|
)
|
|
(1,023,221
|
)
|
|||
Purchases in mortgage servicing rights
|
|
(161
|
)
|
|
(865
|
)
|
|
(5,087
|
)
|
|||
Purchases of premises and equipment and leased equipment
|
|
(179,052
|
)
|
|
(188,762
|
)
|
|
(191,922
|
)
|
|||
Proceeds from sales of premises and equipment and leased equipment
|
|
6,701
|
|
|
25,431
|
|
|
6,819
|
|
|||
Capital improvements on other real estate owned
|
|
—
|
|
|
—
|
|
|
(96
|
)
|
|||
Proceeds from sale of other real estate owned
|
|
5,002
|
|
|
22,422
|
|
|
15,917
|
|
|||
Proceeds from sale of other real estate owned related to FDIC-assisted transactions
|
|
3,515
|
|
|
3,216
|
|
|
8,968
|
|
|||
Life insurance death benefit
|
|
—
|
|
|
2,764
|
|
|
—
|
|
|||
Net cash paid in business acquisition
|
|
—
|
|
|
(3,780
|
)
|
|
(9,010
|
)
|
|||
Purchase of additional investment in subsidiary from minority owners
|
|
—
|
|
|
(827
|
)
|
|
(2,336
|
)
|
|||
Net payments for FDIC related covered assets
|
|
1,068
|
|
|
(713
|
)
|
|
(4,113
|
)
|
|||
Net cash used in investing activities
|
|
(623,686
|
)
|
|
(907,856
|
)
|
|
(727,654
|
)
|
|||
Cash Flows From Financing Activities
|
|
|
|
|
|
|
|
|
|
|||
Net (decrease) increase in deposits
|
|
(304,165
|
)
|
|
847,930
|
|
|
215,906
|
|
|||
Proceeds from short-term borrowings - FHLB advances
|
|
765,000
|
|
|
3,125,000
|
|
|
3,175,000
|
|
|||
Principal paid on short-term borrowings - FHLB advances
|
|
(1,000,000
|
)
|
|
(4,000,000
|
)
|
|
(2,975,000
|
)
|
|||
Net increase (decrease) in short-term borrowings - other
|
|
484,016
|
|
|
(58,249
|
)
|
|
15,246
|
|
|||
Proceeds from long-term borrowings
|
|
477,065
|
|
|
532,497
|
|
|
267,359
|
|
|||
Principal paid on long-term borrowings
|
|
(272,542
|
)
|
|
(114,129
|
)
|
|
(71,845
|
)
|
|||
Redemption of junior subordinated notes issued to capital trusts
|
|
(103,096
|
)
|
|
—
|
|
|
—
|
|
|||
Issuance of preferred stock, net of issuance costs
|
|
—
|
|
|
194,719
|
|
|
—
|
|
|||
Redemption of preferred stock
|
|
(100,000
|
)
|
|
—
|
|
|
—
|
|
|||
Treasury stock transactions, net
|
|
(1,685
|
)
|
|
(3,271
|
)
|
|
(3,837
|
)
|
|||
Stock options exercised
|
|
4,063
|
|
|
2,504
|
|
|
1,410
|
|
|||
Dividends paid on preferred stock
|
|
(14,100
|
)
|
|
(8,007
|
)
|
|
(8,009
|
)
|
|||
Dividends paid on common stock
|
|
(81,883
|
)
|
|
(69,346
|
)
|
|
(58,177
|
)
|
|||
Net cash (used in) provided by financing activities
|
|
(147,327
|
)
|
|
449,648
|
|
|
558,053
|
|
|||
Net increase in cash and cash equivalents
|
|
$
|
71,186
|
|
|
$
|
115,752
|
|
|
$
|
82,028
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
|
|||
Beginning of year
|
|
579,221
|
|
|
463,469
|
|
|
381,441
|
|
|||
End of year
|
|
$
|
650,407
|
|
|
$
|
579,221
|
|
|
$
|
463,469
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Supplemental Disclosures of Cash Flow Information:
|
|
|
|
|
|
|
|
|
|
|||
Cash payments for:
|
|
|
|
|
|
|
|
|
|
|||
Interest paid to depositors and other borrowed funds
|
|
$
|
111,045
|
|
|
$
|
67,899
|
|
|
$
|
38,538
|
|
Income tax payments (refunds), net
|
|
787
|
|
|
(3,505
|
)
|
|
14,188
|
|
|||
Supplemental Schedule of Noncash Investing Activities:
|
|
|
|
|
|
|
|
|
|
|||
Investment securities held to maturity purchased not settled
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(761
|
)
|
Transfer of investment securities held to maturity to investment securities available for sale
|
|
2,610
|
|
|
—
|
|
|
—
|
|
|||
Loans held for sale transferred to loans held for investment
|
|
83,400
|
|
|
29,508
|
|
|
—
|
|
|||
Loans transferred to other real estate owned
|
|
5,260
|
|
|
6,686
|
|
|
4,945
|
|
|||
Loans transferred to other real estate owned related to FDIC-assisted transactions
|
|
211
|
|
|
2,771
|
|
|
2,885
|
|
|||
Loans transferred to repossessed vehicles
|
|
2,740
|
|
|
2,013
|
|
|
3,072
|
|
|||
Operating leases rewritten as direct finance leases included as loans
|
|
3,829
|
|
|
1,680
|
|
|
910
|
|
|||
Long-term borrowings transferred to short-term borrowings
|
|
360,000
|
|
|
225,000
|
|
|
300,000
|
|
|||
Supplemental Schedule of Noncash Investing Activities From Acquisitions:
|
|
|
|
|
|
|
|
|
|
|||
Noncash assets acquired:
|
|
|
|
|
|
|
|
|
|
|||
Investment securities available for sale
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
505,564
|
|
Non-marketable securities -FHLB and FRB stock
|
|
—
|
|
|
—
|
|
|
16,000
|
|
|||
Loans
|
|
—
|
|
|
1,846
|
|
|
1,940,702
|
|
|||
Premises and equipment
|
|
—
|
|
|
157
|
|
|
39,048
|
|
|||
Cash surrender value of life insurance
|
|
—
|
|
|
—
|
|
|
59,917
|
|
|||
Goodwill
|
|
—
|
|
|
2,510
|
|
|
275,968
|
|
|||
Other intangibles
|
|
—
|
|
|
—
|
|
|
25,452
|
|
|||
Other real estate owned
|
|
—
|
|
|
—
|
|
|
3,960
|
|
|||
Other assets
|
|
—
|
|
|
(733
|
)
|
|
32,141
|
|
|||
Total noncash assets acquired
|
|
$
|
—
|
|
|
$
|
3,780
|
|
|
$
|
2,898,752
|
|
Liabilities assumed:
|
|
|
|
|
|
|
|
|
|
|||
Deposits
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,389,327
|
|
Short-term borrowings
|
|
—
|
|
|
—
|
|
|
48,305
|
|
|||
Long-term borrowings
|
|
—
|
|
|
—
|
|
|
16,000
|
|
|||
Junior subordinated notes issued to capital trusts
|
|
—
|
|
|
—
|
|
|
28,075
|
|
|||
Other liabilities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22,966
|
|
Total liabilities assumed
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,504,673
|
|
Note 1.
|
Significant Accounting Policies
|
•
|
Commercial loans and lease loans: BBB-rated debt yield and number of civilians unemployed for 27 weeks or more.
|
•
|
Commercial real estate loans and construction loans: Non-performing loans to total loans, Capacity Utilization: Total Industry (percent of capacity), and the Chicago Fed's National Financial Conditions Index.
|
•
|
Pass rated loans (typically performing loans) are accounted for in accordance with ASC Topic 310-20 "Nonrefundable Fees and Other Costs" as these loans do not have evidence of credit deterioration since origination.
|
•
|
Non-impaired loans (typically performing substandard loans) are accounted for in accordance with ASC Topic 310-30 if they display at least some level of credit deterioration since origination.
|
•
|
Impaired loans (typically substandard loans on non-accrual status) are accounted for in accordance with ASC Topic 310-30 as they display significant credit deterioration since origination.
|
|
|
Years Ended
December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Distributed earnings allocated to common stock
|
|
$
|
81,709
|
|
|
$
|
69,622
|
|
|
$
|
59,047
|
|
Undistributed earnings
|
|
132,206
|
|
|
234,418
|
|
|
115,089
|
|
|||
Net income
|
|
213,915
|
|
|
304,040
|
|
|
174,136
|
|
|||
Less: preferred stock dividends
|
|
12,100
|
|
|
8,007
|
|
|
8,009
|
|
|||
Plus: return from preferred stockholders due to redemption
|
|
15,280
|
|
|
—
|
|
|
—
|
|
|||
Net income available to common stockholders for basic earnings per
common share
|
|
217,095
|
|
|
296,033
|
|
|
166,127
|
|
|||
Plus: preferred stock dividends on convertible preferred stock
|
|
—
|
|
|
7
|
|
|
9
|
|
|||
Less: earnings and dividends allocated to participating securities
|
|
7
|
|
|
7
|
|
|
7
|
|
|||
Earnings allocated to common stockholders for diluted earnings per
common share
|
|
$
|
217,088
|
|
|
$
|
296,033
|
|
|
$
|
166,129
|
|
Weighted average shares outstanding for basic earnings per common share
|
|
84,277,230
|
|
|
83,836,732
|
|
|
76,968,823
|
|
|||
Dilutive effect of:
|
|
|
|
|
|
|
||||||
Stock options
|
|
471,954
|
|
|
567,855
|
|
|
435,976
|
|
|||
Restricted shares and units
|
|
457,116
|
|
|
413,719
|
|
|
564,418
|
|
|||
Convertible preferred stock
|
|
—
|
|
|
5,150
|
|
|
6,904
|
|
|||
Total dilutive effect of equity awards and convertible preferred stock
|
|
929,070
|
|
|
986,724
|
|
|
1,007,298
|
|
|||
Weighted average shares outstanding for diluted earnings per common share
|
|
85,206,300
|
|
|
84,823,456
|
|
|
77,976,121
|
|
|||
Basic earnings per common share
|
|
$
|
2.58
|
|
|
$
|
3.53
|
|
|
$
|
2.16
|
|
Diluted earnings per common share
|
|
2.55
|
|
|
3.49
|
|
|
2.13
|
|
Note 2.
|
Business Combinations
|
(1)
|
Per share fair value amount determined as if the shares of Series B were converted into shares common stock.
|
•
|
Pass rated loans (typically performing loans) are accounted for in accordance with ASC Topic 310-20 "Nonrefundable Fees and Other Costs" as these loans do not have evidence of credit deterioration since origination.
|
•
|
Non-impaired loans (typically performing substandard loans) are accounted for in accordance with ASC Topic 310-30 if they display at least some level of credit deterioration since origination.
|
•
|
Impaired loans (typically substandard loans on non-accrual status) are accounted for in accordance with ASC Topic 310-30 as they display significant credit deterioration since origination.
|
|
|
Purchased
Credit-Impaired Loans |
|
Purchased Non-Credit-Impaired
Loans |
||||
Fair value
|
|
$
|
62,104
|
|
|
$
|
1,880,444
|
|
Gross contractual amounts receivable
|
|
93,490
|
|
|
2,149,868
|
|
||
Best estimate of contractual cash flows not expected to be collected
(1)
|
|
22,293
|
|
|
114,154
|
|
||
Best estimate of contractual cash flows expected to be collected
|
|
71,197
|
|
|
2,035,714
|
|
(1)
|
Includes interest payments not expected to be collected due to loan prepayments as well as principal and interest payments not expected to be collected due to customer default.
|
|
|
Year Ended December 31,
|
||
|
|
2016
|
||
(in thousands)
|
|
|
||
Total revenues (net interest income plus non-interest income)
|
|
$
|
975,188
|
|
Net income
|
|
197,046
|
|
Note 3.
|
Restrictions on Cash and Due From Banks
|
Note 4.
|
Investment Securities
|
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury securities
|
|
$
|
75,139
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
75,141
|
|
U.S. Government sponsored agencies and enterprises
|
|
5,076
|
|
|
—
|
|
|
(52
|
)
|
|
5,024
|
|
||||
States and political subdivisions
|
|
332,048
|
|
|
9,850
|
|
|
(421
|
)
|
|
341,477
|
|
||||
Residential mortgage-backed securities
|
|
1,414,335
|
|
|
3,888
|
|
|
(15,770
|
)
|
|
1,402,453
|
|
||||
Commercial mortgage-backed securities
|
|
31,572
|
|
|
80
|
|
|
(65
|
)
|
|
31,587
|
|
||||
Total Available for Sale
|
|
1,858,170
|
|
|
13,820
|
|
|
(16,308
|
)
|
|
1,855,682
|
|
||||
Held to Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
States and political subdivisions
|
|
887,028
|
|
|
18,896
|
|
|
(1,079
|
)
|
|
904,845
|
|
||||
Residential mortgage-backed securities
|
|
14,656
|
|
|
159
|
|
|
—
|
|
|
14,815
|
|
||||
Total Held to Maturity
|
|
901,684
|
|
|
19,055
|
|
|
(1,079
|
)
|
|
919,660
|
|
||||
Total
|
|
$
|
2,759,854
|
|
|
$
|
32,875
|
|
|
$
|
(17,387
|
)
|
|
$
|
2,775,342
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government sponsored agencies and enterprises
|
|
$
|
23,013
|
|
|
$
|
3
|
|
|
$
|
(9
|
)
|
|
$
|
23,007
|
|
States and political subdivisions
|
|
363,813
|
|
|
15,998
|
|
|
(486
|
)
|
|
379,325
|
|
||||
Residential mortgage-backed securities
|
|
861,594
|
|
|
3,035
|
|
|
(11,930
|
)
|
|
852,699
|
|
||||
Commercial mortgage-backed securities
|
|
71,554
|
|
|
612
|
|
|
(131
|
)
|
|
72,035
|
|
||||
Corporate bonds
|
|
70,155
|
|
|
84
|
|
|
(42
|
)
|
|
70,197
|
|
||||
Equity securities
(1)
|
|
11,236
|
|
|
—
|
|
|
(173
|
)
|
|
11,063
|
|
||||
Total Available for Sale
|
|
1,401,365
|
|
|
19,732
|
|
|
(12,771
|
)
|
|
1,408,326
|
|
||||
Held to Maturity
|
|
|
|
|
|
|
|
|
||||||||
States and political subdivisions
|
|
878,400
|
|
|
32,559
|
|
|
(447
|
)
|
|
910,512
|
|
||||
Residential mortgage-backed securities
|
|
80,682
|
|
|
1,261
|
|
|
—
|
|
|
81,943
|
|
||||
Total Held to Maturity
|
|
959,082
|
|
|
33,820
|
|
|
(447
|
)
|
|
992,455
|
|
||||
Total
|
|
$
|
2,360,447
|
|
|
$
|
53,552
|
|
|
$
|
(13,218
|
)
|
|
$
|
2,400,781
|
|
(1)
|
Reflected in marketable equity securities on the consolidated balance sheet following the adoption of the new guidance under ASC Topic 825 "Financial Instruments" on January 1, 2018.
|
|
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Government sponsored agencies and enterprises
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,024
|
|
|
$
|
(52
|
)
|
|
$
|
5,024
|
|
|
$
|
(52
|
)
|
States and political subdivisions
|
|
6,725
|
|
|
(13
|
)
|
|
23,328
|
|
|
(408
|
)
|
|
30,053
|
|
|
(421
|
)
|
||||||
Residential mortgage-backed securities
|
|
465,935
|
|
|
(2,605
|
)
|
|
517,954
|
|
|
(13,165
|
)
|
|
983,889
|
|
|
(15,770
|
)
|
||||||
Commercial mortgage-backed securities
|
|
11,885
|
|
|
(28
|
)
|
|
11,641
|
|
|
(37
|
)
|
|
23,526
|
|
|
(65
|
)
|
||||||
Total Available for Sale
|
|
484,545
|
|
|
(2,646
|
)
|
|
557,947
|
|
|
(13,662
|
)
|
|
1,042,492
|
|
|
(16,308
|
)
|
||||||
Held to Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
States and political subdivisions
|
|
70,076
|
|
|
(475
|
)
|
|
26,333
|
|
|
(604
|
)
|
|
96,409
|
|
|
(1,079
|
)
|
||||||
Total
|
|
$
|
554,621
|
|
|
$
|
(3,121
|
)
|
|
$
|
584,280
|
|
|
$
|
(14,266
|
)
|
|
$
|
1,138,901
|
|
|
$
|
(17,387
|
)
|
|
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government sponsored agencies and enterprises
|
|
$
|
5,111
|
|
|
$
|
(9
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,111
|
|
|
$
|
(9
|
)
|
States and political subdivisions
|
|
9,016
|
|
|
(29
|
)
|
|
18,754
|
|
|
(457
|
)
|
|
27,770
|
|
|
(486
|
)
|
||||||
Residential mortgage-backed securities
|
|
256,769
|
|
|
(1,853
|
)
|
|
407,224
|
|
|
(10,077
|
)
|
|
663,993
|
|
|
(11,930
|
)
|
||||||
Commercial mortgage-backed securities
|
|
19,483
|
|
|
(20
|
)
|
|
14,583
|
|
|
(111
|
)
|
|
34,066
|
|
|
(131
|
)
|
||||||
Corporate bonds
|
|
7,052
|
|
|
(8
|
)
|
|
9,963
|
|
|
(34
|
)
|
|
17,015
|
|
|
(42
|
)
|
||||||
Equity securities
|
|
11,063
|
|
|
(173
|
)
|
|
—
|
|
|
—
|
|
|
11,063
|
|
|
(173
|
)
|
||||||
Total Available for Sale
|
|
308,494
|
|
|
(2,092
|
)
|
|
450,524
|
|
|
(10,679
|
)
|
|
759,018
|
|
|
(12,771
|
)
|
||||||
Held to Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
States and political subdivisions
|
|
45,499
|
|
|
(257
|
)
|
|
12,561
|
|
|
(190
|
)
|
|
58,060
|
|
|
(447
|
)
|
||||||
Total
|
|
$
|
353,993
|
|
|
$
|
(2,349
|
)
|
|
$
|
463,085
|
|
|
$
|
(10,869
|
)
|
|
$
|
817,078
|
|
|
$
|
(13,218
|
)
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Realized gains
|
|
$
|
424
|
|
|
$
|
617
|
|
|
$
|
614
|
|
Realized losses
|
|
(680
|
)
|
|
(55
|
)
|
|
(167
|
)
|
|||
Net (losses) gains
|
|
$
|
(256
|
)
|
|
$
|
562
|
|
|
$
|
447
|
|
|
|
Amortized
|
|
Fair
|
||||
(In thousands)
|
|
Cost
|
|
Value
|
||||
Available for sale:
|
|
|
|
|
|
|
||
Due in one year or less
|
|
$
|
44,341
|
|
|
$
|
44,613
|
|
Due after one year through five years
|
|
200,973
|
|
|
204,252
|
|
||
Due after five years through ten years
|
|
35,048
|
|
|
35,394
|
|
||
Due after ten years
|
|
131,901
|
|
|
137,383
|
|
||
Residential and commercial mortgage-backed securities
|
|
1,445,907
|
|
|
1,434,040
|
|
||
Total Available for Sale
|
|
1,858,170
|
|
|
1,855,682
|
|
||
Held to maturity:
|
|
|
|
|
|
|
||
Due in one year or less
|
|
58,826
|
|
|
59,042
|
|
||
Due after one year through five years
|
|
153,790
|
|
|
158,329
|
|
||
Due after five years through ten years
|
|
242,049
|
|
|
248,276
|
|
||
Due after ten years
|
|
432,363
|
|
|
439,198
|
|
||
Residential mortgage-backed securities
|
|
14,656
|
|
|
14,815
|
|
||
Total Held to Maturity
|
|
901,684
|
|
|
919,660
|
|
||
Total
|
|
$
|
2,759,854
|
|
|
$
|
2,775,342
|
|
Note 5.
|
Loans
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Commercial
|
|
$
|
5,169,763
|
|
|
$
|
4,786,180
|
|
Commercial collateralized by assignment of lease payments
|
|
2,084,170
|
|
|
2,113,135
|
|
||
Commercial real estate
|
|
3,720,255
|
|
|
4,147,529
|
|
||
Residential real estate
|
|
1,397,598
|
|
|
1,432,458
|
|
||
Construction real estate
|
|
506,837
|
|
|
406,849
|
|
||
Indirect vehicle
|
|
817,108
|
|
|
667,928
|
|
||
Home equity
|
|
172,890
|
|
|
219,098
|
|
||
Other consumer
|
|
82,461
|
|
|
73,141
|
|
||
Gross loans, excluding purchased credit-impaired loans
|
|
13,951,082
|
|
|
13,846,318
|
|
||
Purchased credit-impaired loans
|
|
84,101
|
|
|
119,744
|
|
||
Total loans
|
|
$
|
14,035,183
|
|
|
$
|
13,966,062
|
|
|
|
Current
|
|
30-59 Days
Past Due |
|
60-89 Days
Past Due |
|
Loans Past Due
90 Days or More |
|
Total
Past Due |
|
Total
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
5,160,023
|
|
|
$
|
474
|
|
|
$
|
—
|
|
|
$
|
9,266
|
|
|
$
|
9,740
|
|
|
$
|
5,169,763
|
|
Commercial collateralized by assignment of lease payments
|
|
2,034,344
|
|
|
40,487
|
|
|
6,729
|
|
|
2,610
|
|
|
49,826
|
|
|
2,084,170
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Health care
|
|
617,428
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
617,428
|
|
||||||
Industrial
|
|
834,983
|
|
|
—
|
|
|
—
|
|
|
2,814
|
|
|
2,814
|
|
|
837,797
|
|
||||||
Multifamily
|
|
514,234
|
|
|
1,925
|
|
|
—
|
|
|
—
|
|
|
1,925
|
|
|
516,159
|
|
||||||
Retail
|
|
461,063
|
|
|
—
|
|
|
—
|
|
|
1,232
|
|
|
1,232
|
|
|
462,295
|
|
||||||
Office
|
|
432,977
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|
120
|
|
|
433,097
|
|
||||||
Other
|
|
846,361
|
|
|
897
|
|
|
278
|
|
|
5,943
|
|
|
7,118
|
|
|
853,479
|
|
||||||
Residential real estate
|
|
1,373,677
|
|
|
7,155
|
|
|
2,103
|
|
|
14,663
|
|
|
23,921
|
|
|
1,397,598
|
|
||||||
Construction real estate
|
|
504,975
|
|
|
1,862
|
|
|
—
|
|
|
—
|
|
|
1,862
|
|
|
506,837
|
|
||||||
Indirect vehicle
|
|
807,514
|
|
|
6,903
|
|
|
1,773
|
|
|
918
|
|
|
9,594
|
|
|
817,108
|
|
||||||
Home equity
|
|
169,801
|
|
|
990
|
|
|
179
|
|
|
1,920
|
|
|
3,089
|
|
|
172,890
|
|
||||||
Other consumer
|
|
82,147
|
|
|
134
|
|
|
150
|
|
|
30
|
|
|
314
|
|
|
82,461
|
|
||||||
Gross loans, excluding purchased credit-impaired loans
|
|
13,839,527
|
|
|
60,827
|
|
|
11,212
|
|
|
39,516
|
|
|
111,555
|
|
|
13,951,082
|
|
||||||
Purchased credit-impaired loans
|
|
45,710
|
|
|
7,463
|
|
|
3,988
|
|
|
26,940
|
|
|
38,391
|
|
|
84,101
|
|
||||||
Total loans
|
|
$
|
13,885,237
|
|
|
$
|
68,290
|
|
|
$
|
15,200
|
|
|
$
|
66,456
|
|
|
$
|
149,946
|
|
|
$
|
14,035,183
|
|
Non-performing loan aging
|
|
$
|
27,672
|
|
|
$
|
2,121
|
|
|
$
|
1,062
|
|
|
$
|
39,516
|
|
|
$
|
42,699
|
|
|
$
|
70,371
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
4,769,244
|
|
|
$
|
1,702
|
|
|
$
|
6,926
|
|
|
$
|
8,308
|
|
|
$
|
16,936
|
|
|
$
|
4,786,180
|
|
Commercial collateralized by assignment of lease payments
|
|
2,099,246
|
|
|
11,320
|
|
|
1,878
|
|
|
691
|
|
|
13,889
|
|
|
2,113,135
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Health care
|
|
710,722
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
710,722
|
|
||||||
Industrial
|
|
908,394
|
|
|
—
|
|
|
—
|
|
|
755
|
|
|
755
|
|
|
909,149
|
|
||||||
Multifamily
|
|
601,844
|
|
|
688
|
|
|
—
|
|
|
732
|
|
|
1,420
|
|
|
603,264
|
|
||||||
Retail
|
|
503,224
|
|
|
—
|
|
|
—
|
|
|
474
|
|
|
474
|
|
|
503,698
|
|
||||||
Office
|
|
453,960
|
|
|
—
|
|
|
956
|
|
|
1,454
|
|
|
2,410
|
|
|
456,370
|
|
||||||
Other
|
|
956,181
|
|
|
7,035
|
|
|
76
|
|
|
1,034
|
|
|
8,145
|
|
|
964,326
|
|
||||||
Residential real estate
|
|
1,410,473
|
|
|
12,359
|
|
|
1,907
|
|
|
7,719
|
|
|
21,985
|
|
|
1,432,458
|
|
||||||
Construction real estate
|
|
404,595
|
|
|
2,254
|
|
|
—
|
|
|
—
|
|
|
2,254
|
|
|
406,849
|
|
||||||
Indirect vehicle
|
|
661,028
|
|
|
4,905
|
|
|
1,083
|
|
|
912
|
|
|
6,900
|
|
|
667,928
|
|
||||||
Home equity
|
|
210,831
|
|
|
3,161
|
|
|
1,073
|
|
|
4,033
|
|
|
8,267
|
|
|
219,098
|
|
||||||
Other consumer
|
|
72,846
|
|
|
202
|
|
|
36
|
|
|
57
|
|
|
295
|
|
|
73,141
|
|
||||||
Gross loans, excluding purchased credit-impaired loans
|
|
13,762,588
|
|
|
43,626
|
|
|
13,935
|
|
|
26,169
|
|
|
83,730
|
|
|
13,846,318
|
|
||||||
Purchased credit-impaired loans
|
|
63,937
|
|
|
8,749
|
|
|
3,997
|
|
|
43,061
|
|
|
55,807
|
|
|
119,744
|
|
||||||
Total loans
|
|
$
|
13,826,525
|
|
|
$
|
52,375
|
|
|
$
|
17,932
|
|
|
$
|
69,230
|
|
|
$
|
139,537
|
|
|
$
|
13,966,062
|
|
Non-performing loan aging
|
|
$
|
36,879
|
|
|
$
|
8,799
|
|
|
$
|
4,961
|
|
|
$
|
26,169
|
|
|
$
|
39,929
|
|
|
$
|
76,808
|
|
|
|
2018
|
|
2017
|
||||||||||||
|
|
|
|
Loans past due
|
|
|
|
Loans past due
|
||||||||
|
|
Non-accrual
|
|
90 days or more
and still accruing
|
|
Non-accrual
|
|
90 days or more
and still accruing
|
||||||||
Commercial
|
|
$
|
16,509
|
|
|
$
|
—
|
|
|
$
|
14,001
|
|
|
$
|
3,500
|
|
Commercial collateralized by assignment of lease payments
|
|
1,551
|
|
|
2,398
|
|
|
490
|
|
|
531
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Health care
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Industrial
|
|
2,814
|
|
|
—
|
|
|
8,807
|
|
|
—
|
|
||||
Multifamily
|
|
33
|
|
|
—
|
|
|
860
|
|
|
—
|
|
||||
Office
|
|
416
|
|
|
—
|
|
|
2,772
|
|
|
—
|
|
||||
Retail
|
|
1,232
|
|
|
—
|
|
|
590
|
|
|
—
|
|
||||
Other
|
|
6,710
|
|
|
—
|
|
|
8,016
|
|
|
190
|
|
||||
Residential real estate
|
|
21,829
|
|
|
327
|
|
|
18,374
|
|
|
1,210
|
|
||||
Construction real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Indirect vehicle
|
|
4,176
|
|
|
—
|
|
|
3,019
|
|
|
81
|
|
||||
Home equity
|
|
12,341
|
|
|
—
|
|
|
14,305
|
|
|
—
|
|
||||
Other consumer
|
|
5
|
|
|
30
|
|
|
4
|
|
|
58
|
|
||||
Total
|
|
$
|
67,616
|
|
|
$
|
2,755
|
|
|
$
|
71,238
|
|
|
$
|
5,570
|
|
|
|
Pass
|
|
Special
Mention |
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
|
$
|
4,785,792
|
|
|
$
|
194,314
|
|
|
$
|
189,657
|
|
|
$
|
—
|
|
|
$
|
5,169,763
|
|
Commercial collateralized by assignment of lease payments
|
|
2,055,391
|
|
|
22,768
|
|
|
6,011
|
|
|
—
|
|
|
2,084,170
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Health care
|
|
462,399
|
|
|
48,711
|
|
|
106,318
|
|
|
—
|
|
|
617,428
|
|
|||||
Industrial
|
|
799,673
|
|
|
23,834
|
|
|
14,290
|
|
|
—
|
|
|
837,797
|
|
|||||
Multifamily
|
|
509,270
|
|
|
1,242
|
|
|
5,647
|
|
|
—
|
|
|
516,159
|
|
|||||
Retail
|
|
436,923
|
|
|
9,939
|
|
|
15,433
|
|
|
—
|
|
|
462,295
|
|
|||||
Office
|
|
410,122
|
|
|
3,119
|
|
|
19,856
|
|
|
—
|
|
|
433,097
|
|
|||||
Other
|
|
753,334
|
|
|
46,337
|
|
|
53,808
|
|
|
—
|
|
|
853,479
|
|
|||||
Construction real estate
|
|
504,246
|
|
|
2,247
|
|
|
344
|
|
|
—
|
|
|
506,837
|
|
|||||
Total
|
|
$
|
10,717,150
|
|
|
$
|
352,511
|
|
|
$
|
411,364
|
|
|
$
|
—
|
|
|
$
|
11,481,025
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
|
$
|
4,535,111
|
|
|
$
|
147,232
|
|
|
$
|
103,837
|
|
|
$
|
—
|
|
|
$
|
4,786,180
|
|
Commercial collateralized by assignment of lease payments
|
|
2,095,668
|
|
|
7,527
|
|
|
9,940
|
|
|
—
|
|
|
2,113,135
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Health care
|
|
640,751
|
|
|
33,672
|
|
|
36,299
|
|
|
—
|
|
|
710,722
|
|
|||||
Industrial
|
|
885,524
|
|
|
12,411
|
|
|
11,214
|
|
|
—
|
|
|
909,149
|
|
|||||
Multifamily
|
|
595,818
|
|
|
146
|
|
|
7,300
|
|
|
—
|
|
|
603,264
|
|
|||||
Retail
|
|
492,830
|
|
|
8,326
|
|
|
2,542
|
|
|
—
|
|
|
503,698
|
|
|||||
Office
|
|
452,902
|
|
|
696
|
|
|
2,772
|
|
|
—
|
|
|
456,370
|
|
|||||
Other
|
|
891,703
|
|
|
37,682
|
|
|
34,941
|
|
|
—
|
|
|
964,326
|
|
|||||
Construction real estate
|
|
406,849
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
406,849
|
|
|||||
Total
|
|
$
|
10,997,156
|
|
|
$
|
247,692
|
|
|
$
|
208,845
|
|
|
$
|
—
|
|
|
$
|
11,453,693
|
|
|
|
Performing
|
|
Non-performing
|
|
Total
|
||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|||
Residential real estate
|
|
$
|
1,375,442
|
|
|
$
|
22,156
|
|
|
$
|
1,397,598
|
|
Indirect vehicle
|
|
812,932
|
|
|
4,176
|
|
|
817,108
|
|
|||
Home equity
|
|
160,549
|
|
|
12,341
|
|
|
172,890
|
|
|||
Other consumer
|
|
82,426
|
|
|
35
|
|
|
82,461
|
|
|||
Total
|
|
$
|
2,431,349
|
|
|
$
|
38,708
|
|
|
$
|
2,470,057
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|||
Residential real estate
|
|
$
|
1,412,874
|
|
|
$
|
19,584
|
|
|
$
|
1,432,458
|
|
Indirect vehicle
|
|
664,828
|
|
|
3,100
|
|
|
667,928
|
|
|||
Home equity
|
|
204,793
|
|
|
14,305
|
|
|
219,098
|
|
|||
Other consumer
|
|
73,079
|
|
|
62
|
|
|
73,141
|
|
|||
Total
|
|
$
|
2,355,574
|
|
|
$
|
37,051
|
|
|
$
|
2,392,625
|
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
|
Unpaid
Principal Balance |
|
Recorded
Investment |
|
Partial
Charge-offs |
|
Allowance for
Loan and Lease Losses Allocated |
|
Average
Recorded Investment |
|
Interest
Income Recognized |
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
7,508
|
|
|
$
|
4,729
|
|
|
$
|
2,779
|
|
|
$
|
—
|
|
|
$
|
9,971
|
|
|
$
|
222
|
|
Commercial collateralized by assignment of lease payments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Health care
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Industrial
|
|
3,429
|
|
|
2,814
|
|
|
615
|
|
|
—
|
|
|
1,760
|
|
|
—
|
|
||||||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Retail
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Office
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
820
|
|
|
52
|
|
||||||
Residential real estate
|
|
3,793
|
|
|
3,755
|
|
|
38
|
|
|
—
|
|
|
2,995
|
|
|
—
|
|
||||||
Construction real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Indirect vehicle
|
|
695
|
|
|
395
|
|
|
300
|
|
|
—
|
|
|
692
|
|
|
41
|
|
||||||
Home equity
|
|
161
|
|
|
161
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
||||||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
32,078
|
|
|
10,576
|
|
|
21,502
|
|
|
1,612
|
|
|
12,993
|
|
|
256
|
|
||||||
Commercial collateralized by assignment of lease payments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|
—
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Health care
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
267
|
|
|
28
|
|
||||||
Industrial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,590
|
|
|
8
|
|
||||||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Retail
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Office
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
|
4,766
|
|
|
4,766
|
|
|
—
|
|
|
413
|
|
|
3,502
|
|
|
124
|
|
||||||
Residential real estate
|
|
18,966
|
|
|
17,159
|
|
|
1,807
|
|
|
1,454
|
|
|
18,158
|
|
|
32
|
|
||||||
Construction real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Indirect vehicle
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Home equity
|
|
28,897
|
|
|
26,150
|
|
|
2,747
|
|
|
1,392
|
|
|
28,008
|
|
|
47
|
|
||||||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
100,293
|
|
|
$
|
70,505
|
|
|
$
|
29,788
|
|
|
$
|
4,871
|
|
|
$
|
80,899
|
|
|
$
|
810
|
|
|
|
December 31, 2017
|
||||||||||||||||||||||
|
|
Unpaid
Principal Balance |
|
Recorded
Investment |
|
Partial
Charge-offs |
|
Allowance for
Loan and Lease Losses Allocated |
|
Average
Recorded Investment |
|
Interest
Income Recognized |
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial
|
|
$
|
8,312
|
|
|
$
|
7,771
|
|
|
$
|
541
|
|
|
$
|
—
|
|
|
$
|
5,595
|
|
|
$
|
95
|
|
Commercial collateralized by assignment of lease payments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
301
|
|
|
—
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Health care
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Industrial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,260
|
|
|
8
|
|
||||||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,261
|
|
|
29
|
|
||||||
Retail
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
814
|
|
|
27
|
|
||||||
Office
|
|
527
|
|
|
527
|
|
|
—
|
|
|
—
|
|
|
1,426
|
|
|
18
|
|
||||||
Other
|
|
10,597
|
|
|
10,597
|
|
|
—
|
|
|
—
|
|
|
2,312
|
|
|
128
|
|
||||||
Residential real estate
|
|
1,950
|
|
|
1,912
|
|
|
38
|
|
|
—
|
|
|
483
|
|
|
—
|
|
||||||
Construction real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Indirect vehicle
|
|
408
|
|
|
202
|
|
|
206
|
|
|
—
|
|
|
411
|
|
|
26
|
|
||||||
Home equity
|
|
81
|
|
|
81
|
|
|
—
|
|
|
—
|
|
|
376
|
|
|
—
|
|
||||||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
7,418
|
|
|
7,418
|
|
|
—
|
|
|
2,315
|
|
|
7,668
|
|
|
277
|
|
||||||
Commercial collateralized by assignment of lease payments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
126
|
|
|
14
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Health care
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Industrial
|
|
8,339
|
|
|
8,317
|
|
|
22
|
|
|
2,669
|
|
|
3,215
|
|
|
171
|
|
||||||
Multifamily
|
|
568
|
|
|
568
|
|
|
—
|
|
|
320
|
|
|
426
|
|
|
—
|
|
||||||
Retail
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,345
|
|
|
28
|
|
||||||
Office
|
|
2,293
|
|
|
2,277
|
|
|
16
|
|
|
752
|
|
|
636
|
|
|
4
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
—
|
|
||||||
Residential real estate
|
|
21,380
|
|
|
19,014
|
|
|
2,366
|
|
|
2,158
|
|
|
17,616
|
|
|
25
|
|
||||||
Construction real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Indirect vehicle
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Home equity
|
|
30,762
|
|
|
28,286
|
|
|
2,476
|
|
|
2,200
|
|
|
27,982
|
|
|
54
|
|
||||||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
92,635
|
|
|
$
|
86,970
|
|
|
$
|
5,665
|
|
|
$
|
10,414
|
|
|
$
|
73,282
|
|
|
$
|
904
|
|
|
|
December 31, 2018
|
||||||||||||
|
|
Number of
Loans |
|
Pre-Modification Recorded
Investment |
|
Post-Modification Recorded
Investment |
|
Charge-offs and
Specific Reserves |
||||||
Performing:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Commercial
|
|
2
|
|
$
|
69
|
|
|
$
|
69
|
|
|
$
|
—
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Residential real estate
|
|
2
|
|
220
|
|
|
220
|
|
|
21
|
|
|||
Home equity
|
|
2
|
|
128
|
|
|
128
|
|
|
7
|
|
|||
Total
|
|
6
|
|
$
|
417
|
|
|
$
|
417
|
|
|
$
|
28
|
|
Non-Performing:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Commercial
|
|
1
|
|
$
|
750
|
|
|
$
|
750
|
|
|
$
|
—
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Residential real estate
|
|
21
|
|
3,525
|
|
|
3,525
|
|
|
1,216
|
|
|||
Indirect vehicle
|
|
45
|
|
290
|
|
|
290
|
|
|
171
|
|
|||
Home equity
|
|
7
|
|
606
|
|
|
606
|
|
|
233
|
|
|||
Total
|
|
74
|
|
$
|
5,171
|
|
|
$
|
5,171
|
|
|
$
|
1,620
|
|
|
|
December 31, 2017
|
|||||||||||||
|
|
Number of
Loans |
|
Pre-Modification Recorded
Investment |
|
Post-Modification Recorded
Investment |
|
Charge-offs and
Specific Reserves |
|||||||
Performing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Commercial
|
|
5
|
|
|
$
|
2,491
|
|
|
$
|
2,491
|
|
|
$
|
373
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Industrial
|
|
3
|
|
|
3,174
|
|
|
3,174
|
|
|
—
|
|
|||
Retail
|
|
2
|
|
|
337
|
|
|
337
|
|
|
—
|
|
|||
Office
|
|
1
|
|
|
548
|
|
|
548
|
|
|
—
|
|
|||
Other
|
|
4
|
|
|
4,171
|
|
|
4,171
|
|
|
—
|
|
|||
Residential real estate
|
|
10
|
|
|
1,744
|
|
|
1,744
|
|
|
230
|
|
|||
Home equity
|
|
5
|
|
|
122
|
|
|
122
|
|
|
9
|
|
|||
Total
|
|
30
|
|
|
$
|
12,587
|
|
|
$
|
12,587
|
|
|
$
|
612
|
|
Non-Performing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Commercial
|
|
6
|
|
|
$
|
1,363
|
|
|
$
|
1,363
|
|
|
$
|
—
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Multifamily
|
|
3
|
|
|
290
|
|
|
290
|
|
|
—
|
|
|||
Retail
|
|
1
|
|
|
906
|
|
|
906
|
|
|
—
|
|
|||
Other
|
|
1
|
|
|
554
|
|
|
554
|
|
|
—
|
|
|||
Residential real estate
|
|
35
|
|
|
6,428
|
|
|
6,428
|
|
|
1,733
|
|
|||
Indirect vehicle
|
|
40
|
|
|
277
|
|
|
277
|
|
|
150
|
|
|||
Home equity
|
|
5
|
|
|
842
|
|
|
842
|
|
|
76
|
|
|||
Total
|
|
91
|
|
|
$
|
10,660
|
|
|
$
|
10,660
|
|
|
$
|
1,959
|
|
|
|
Performing
|
|
Non-performing
|
||||
Beginning balance
|
|
$
|
28,554
|
|
|
$
|
30,836
|
|
Additions
|
|
417
|
|
|
5,171
|
|
||
Charge-offs
|
|
—
|
|
|
(3,369
|
)
|
||
Principal payments, net
|
|
(8,382
|
)
|
|
(8,238
|
)
|
||
Removals
|
|
(77
|
)
|
|
(168
|
)
|
||
Transfer to other real estate owned
|
|
—
|
|
|
—
|
|
||
Transfers in
|
|
3,754
|
|
|
1,473
|
|
||
Transfers out
|
|
(1,473
|
)
|
|
(3,754
|
)
|
||
Ending balance
|
|
$
|
22,793
|
|
|
$
|
21,951
|
|
|
December 31, 2018
|
||||||||||||||||||
|
Extended Maturity,
Extended Amortization
and Reduction
of Interest Rate
|
|
Extended
Maturity and/or
Amortization
|
|
Extended Maturity, Extended Amortization, and Delay in Payments
|
|
Delay in
Payments and/or
Reduction of
Interest Rate
|
|
Total
|
||||||||||
Commercial
|
$
|
—
|
|
|
$
|
750
|
|
|
$
|
69
|
|
|
$
|
—
|
|
|
$
|
819
|
|
Residential real estate
|
2,472
|
|
|
862
|
|
|
—
|
|
|
411
|
|
|
3,745
|
|
|||||
Indirect vehicle
|
—
|
|
|
—
|
|
|
—
|
|
|
290
|
|
|
290
|
|
|||||
Home equity
|
293
|
|
|
441
|
|
|
—
|
|
|
—
|
|
|
734
|
|
|||||
Total
|
$
|
2,765
|
|
|
$
|
2,053
|
|
|
$
|
69
|
|
|
$
|
701
|
|
|
$
|
5,588
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Balance at beginning of year
|
|
$
|
159,408
|
|
|
$
|
141,842
|
|
|
$
|
131,508
|
|
Provision for credit losses
|
|
47,201
|
|
|
21,593
|
|
|
19,563
|
|
|||
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|||
Commercial
|
|
30,173
|
|
|
2,323
|
|
|
2,126
|
|
|||
Commercial collateralized by assignment of lease payments
|
|
7,997
|
|
|
3,397
|
|
|
6,740
|
|
|||
Commercial real estate
|
|
6,396
|
|
|
1,466
|
|
|
2,851
|
|
|||
Residential real estate
|
|
1,100
|
|
|
932
|
|
|
1,356
|
|
|||
Construction real estate
|
|
—
|
|
|
—
|
|
|
593
|
|
|||
Indirect vehicle
|
|
7,656
|
|
|
5,433
|
|
|
3,505
|
|
|||
Home equity
|
|
1,299
|
|
|
1,314
|
|
|
1,662
|
|
|||
Other consumer
|
|
1,321
|
|
|
1,707
|
|
|
1,778
|
|
|||
Total charge-offs
|
|
55,942
|
|
|
16,572
|
|
|
20,611
|
|
|||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|||
Commercial
|
|
2,222
|
|
|
3,806
|
|
|
2,434
|
|
|||
Commercial collateralized by assignment of lease payments
|
|
1,275
|
|
|
775
|
|
|
550
|
|
|||
Commercial real estate
|
|
1,956
|
|
|
2,817
|
|
|
3,729
|
|
|||
Residential real estate
|
|
778
|
|
|
724
|
|
|
1,210
|
|
|||
Construction real estate
|
|
695
|
|
|
774
|
|
|
142
|
|
|||
Indirect vehicle
|
|
3,124
|
|
|
2,282
|
|
|
1,837
|
|
|||
Home equity
|
|
817
|
|
|
778
|
|
|
756
|
|
|||
Other consumer
|
|
522
|
|
|
589
|
|
|
724
|
|
|||
Total recoveries
|
|
11,389
|
|
|
12,545
|
|
|
11,382
|
|
|||
Net charge-offs
|
|
44,553
|
|
|
4,027
|
|
|
9,229
|
|
|||
Allowance for credit losses
|
|
162,056
|
|
|
159,408
|
|
|
141,842
|
|
|||
Allowance for unfunded credit commitments
|
|
(478
|
)
|
|
(1,698
|
)
|
|
(2,476
|
)
|
|||
Balance at December 31,
|
|
$
|
161,578
|
|
|
$
|
157,710
|
|
|
$
|
139,366
|
|
|
|
Commercial
|
|
Commercial
collateralized by
assignment of
lease payments
|
|
Commercial
real estate
|
|
Residential
real estate
|
|
Construction
real estate
|
|
Indirect
vehicle
|
|
Home
equity
|
|
Other Consumer
|
|
Unfunded
Commitments
|
|
Total
|
||||||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
|
$
|
46,267
|
|
|
$
|
13,007
|
|
|
$
|
63,429
|
|
|
$
|
7,012
|
|
|
$
|
15,501
|
|
|
$
|
4,728
|
|
|
$
|
5,296
|
|
|
$
|
2,470
|
|
|
$
|
1,698
|
|
|
$
|
159,408
|
|
Charge-offs
|
|
30,173
|
|
|
7,997
|
|
|
6,396
|
|
|
1,100
|
|
|
—
|
|
|
7,656
|
|
|
1,299
|
|
|
1,321
|
|
|
—
|
|
|
55,942
|
|
||||||||||
Recoveries
|
|
2,222
|
|
|
1,275
|
|
|
1,956
|
|
|
778
|
|
|
695
|
|
|
3,124
|
|
|
817
|
|
|
522
|
|
|
—
|
|
|
11,389
|
|
||||||||||
Provision
|
|
29,751
|
|
|
7,038
|
|
|
4,484
|
|
|
(1,577
|
)
|
|
7,036
|
|
|
2,996
|
|
|
(1,424
|
)
|
|
117
|
|
|
(1,220
|
)
|
|
47,201
|
|
||||||||||
Ending balance
|
|
$
|
48,067
|
|
|
$
|
13,323
|
|
|
$
|
63,473
|
|
|
$
|
5,113
|
|
|
$
|
23,232
|
|
|
$
|
3,192
|
|
|
$
|
3,390
|
|
|
$
|
1,788
|
|
|
$
|
478
|
|
|
$
|
162,056
|
|
Ending allowance balance attributable to loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
|
$
|
1,612
|
|
|
$
|
—
|
|
|
$
|
413
|
|
|
$
|
1,454
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,392
|
|
|
$
|
—
|
|
|
$
|
50
|
|
|
$
|
4,921
|
|
Collectively evaluated for impairment
|
|
46,271
|
|
|
13,323
|
|
|
62,765
|
|
|
3,659
|
|
|
23,232
|
|
|
3,192
|
|
|
1,998
|
|
|
1,788
|
|
|
428
|
|
|
156,656
|
|
||||||||||
Acquired and accounted for under ASC Topic 310-30 (1)
|
|
184
|
|
|
—
|
|
|
295
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
479
|
|
||||||||||
Total ending allowance balance
|
|
$
|
48,067
|
|
|
$
|
13,323
|
|
|
$
|
63,473
|
|
|
$
|
5,113
|
|
|
$
|
23,232
|
|
|
$
|
3,192
|
|
|
$
|
3,390
|
|
|
$
|
1,788
|
|
|
$
|
478
|
|
|
$
|
162,056
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
|
$
|
15,305
|
|
|
$
|
—
|
|
|
$
|
7,580
|
|
|
$
|
20,914
|
|
|
$
|
—
|
|
|
$
|
395
|
|
|
$
|
26,311
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70,505
|
|
Collectively evaluated for impairment
|
|
5,154,458
|
|
|
2,084,170
|
|
|
3,712,675
|
|
|
1,376,684
|
|
|
506,837
|
|
|
816,713
|
|
|
146,579
|
|
|
82,461
|
|
|
—
|
|
|
13,880,577
|
|
||||||||||
Acquired and accounted for under ASC Topic 310-30
(1)
|
|
7,245
|
|
|
—
|
|
|
20,725
|
|
|
44,176
|
|
|
3,020
|
|
|
—
|
|
|
8,081
|
|
|
854
|
|
|
—
|
|
|
84,101
|
|
||||||||||
Total ending loans balance
|
|
$
|
5,177,008
|
|
|
$
|
2,084,170
|
|
|
$
|
3,740,980
|
|
|
$
|
1,441,774
|
|
|
$
|
509,857
|
|
|
$
|
817,108
|
|
|
$
|
180,971
|
|
|
$
|
83,315
|
|
|
$
|
—
|
|
|
$
|
14,035,183
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
|
$
|
44,661
|
|
|
$
|
12,238
|
|
|
$
|
51,807
|
|
|
$
|
5,971
|
|
|
$
|
14,758
|
|
|
$
|
3,421
|
|
|
$
|
4,689
|
|
|
$
|
1,821
|
|
|
$
|
2,476
|
|
|
$
|
141,842
|
|
Charge-offs
|
|
2,323
|
|
|
3,397
|
|
|
1,466
|
|
|
932
|
|
|
—
|
|
|
5,433
|
|
|
1,314
|
|
|
1,707
|
|
|
—
|
|
|
16,572
|
|
||||||||||
Recoveries
|
|
3,806
|
|
|
775
|
|
|
2,817
|
|
|
724
|
|
|
774
|
|
|
2,282
|
|
|
778
|
|
|
589
|
|
|
—
|
|
|
12,545
|
|
||||||||||
Provision
|
|
123
|
|
|
3,391
|
|
|
10,271
|
|
|
1,249
|
|
|
(31
|
)
|
|
4,458
|
|
|
1,143
|
|
|
1,767
|
|
|
(778
|
)
|
|
21,593
|
|
||||||||||
Ending balance
|
|
$
|
46,267
|
|
|
$
|
13,007
|
|
|
$
|
63,429
|
|
|
$
|
7,012
|
|
|
$
|
15,501
|
|
|
$
|
4,728
|
|
|
$
|
5,296
|
|
|
$
|
2,470
|
|
|
$
|
1,698
|
|
|
$
|
159,408
|
|
Ending allowance balance attributable to loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
|
$
|
2,315
|
|
|
$
|
—
|
|
|
$
|
3,741
|
|
|
$
|
2,158
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,200
|
|
|
$
|
—
|
|
|
$
|
437
|
|
|
$
|
10,851
|
|
Collectively evaluated for impairment
|
|
43,861
|
|
|
13,007
|
|
|
58,637
|
|
|
4,854
|
|
|
15,466
|
|
|
4,728
|
|
|
3,096
|
|
|
2,470
|
|
|
1,261
|
|
|
147,380
|
|
||||||||||
Acquired and accounted for under ASC Topic 310-30
(1)
|
|
91
|
|
|
—
|
|
|
1,051
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,177
|
|
||||||||||
Total ending allowance balance
|
|
$
|
46,267
|
|
|
$
|
13,007
|
|
|
$
|
63,429
|
|
|
$
|
7,012
|
|
|
$
|
15,501
|
|
|
$
|
4,728
|
|
|
$
|
5,296
|
|
|
$
|
2,470
|
|
|
$
|
1,698
|
|
|
$
|
159,408
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
|
$
|
15,189
|
|
|
$
|
—
|
|
|
$
|
22,286
|
|
|
$
|
20,926
|
|
|
$
|
—
|
|
|
$
|
202
|
|
|
$
|
28,367
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
86,970
|
|
Collectively evaluated for impairment
|
|
4,770,991
|
|
|
2,113,135
|
|
|
4,125,243
|
|
|
1,411,532
|
|
|
406,849
|
|
|
667,726
|
|
|
190,731
|
|
|
73,141
|
|
|
—
|
|
|
13,759,348
|
|
||||||||||
Acquired and accounted for under ASC Topic 310-30
(1)
|
|
13,667
|
|
|
—
|
|
|
25,490
|
|
|
63,137
|
|
|
5,220
|
|
|
—
|
|
|
10,559
|
|
|
1,671
|
|
|
—
|
|
|
119,744
|
|
||||||||||
Total ending loans balance
|
|
$
|
4,799,847
|
|
|
$
|
2,113,135
|
|
|
$
|
4,173,019
|
|
|
$
|
1,495,595
|
|
|
$
|
412,069
|
|
|
$
|
667,928
|
|
|
$
|
229,657
|
|
|
$
|
74,812
|
|
|
$
|
—
|
|
|
$
|
13,966,062
|
|
(1)
|
Loans acquired in business combinations and accounted for under ASC Topic 310-30 “Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality.”
|
•
|
Pass rated loans (typically performing loans) are accounted for in accordance with ASC Topic 310-20 "Nonrefundable Fees and Other Costs" as these loans do not have evidence of credit deterioration since origination.
|
•
|
Non-impaired loans (typically performing substandard loans) are accounted for in accordance with ASC Topic 310-30 if they display at least some level of credit deterioration since origination.
|
•
|
Impaired loans (typically substandard loans on non-accrual status) are accounted for in accordance with ASC Topic 310-30 as they display significant credit deterioration since origination.
|
|
|
Year Ended December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Balance at beginning of period
|
|
$
|
12,069
|
|
|
$
|
16,050
|
|
Purchases
|
|
—
|
|
|
43
|
|
||
Accretion
|
|
(8,270
|
)
|
|
(12,500
|
)
|
||
Other
(1)
|
|
2,125
|
|
|
8,476
|
|
||
Balance at end of period
|
|
$
|
5,924
|
|
|
$
|
12,069
|
|
(1)
|
Primarily includes discount transfers from non-accretable discount to accretable discount due to better than expected performance of loan pools acquired and accounted for under ASC Topic 310-30.
|
(1)
|
Covered loans refer to loans covered under loss-sharing agreements with the FDIC. The remaining loss-share agreements were scheduled to expire between 2019 and 2020. Subsequent to December 31, 2018, the Company exited the loss-share agreements with the FDIC. See Note 25. Subsequent Events.
|
Note 6.
|
Lease Investments
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Direct finance leases:
|
|
|
|
|
|
|
||
Minimum lease payments
|
|
$
|
453,014
|
|
|
$
|
492,953
|
|
Estimated unguaranteed residual values
|
|
69,721
|
|
|
74,220
|
|
||
Less: unearned income
|
|
(40,196
|
)
|
|
(41,311
|
)
|
||
Direct finance leases
(1)
|
|
$
|
482,539
|
|
|
$
|
525,862
|
|
Leveraged leases:
|
|
|
|
|
|
|
||
Minimum lease payments
|
|
$
|
—
|
|
|
$
|
179
|
|
Estimated unguaranteed residual values
|
|
—
|
|
|
10
|
|
||
Less: unearned income
|
|
—
|
|
|
(3
|
)
|
||
Less: related non-recourse debt
|
|
—
|
|
|
(177
|
)
|
||
Leveraged leases
(1)
|
|
$
|
—
|
|
|
$
|
9
|
|
Operating leases:
|
|
|
|
|
|
|
||
Equipment, at cost
|
|
$
|
694,416
|
|
|
$
|
575,612
|
|
Less accumulated depreciation
|
|
(206,640
|
)
|
|
(166,561
|
)
|
||
Lease investments, net
|
|
$
|
487,776
|
|
|
$
|
409,051
|
|
|
|
Direct
Finance
|
|
Operating
|
|
|
||||||
Year
|
|
Leases
|
|
Leases
|
|
Total
|
||||||
2018
|
|
$
|
162,997
|
|
|
$
|
93,026
|
|
|
$
|
256,023
|
|
2019
|
|
119,735
|
|
|
76,107
|
|
|
195,842
|
|
|||
2020
|
|
79,863
|
|
|
57,168
|
|
|
137,031
|
|
|||
2021
|
|
47,979
|
|
|
44,094
|
|
|
92,073
|
|
|||
2022
|
|
27,759
|
|
|
28,603
|
|
|
56,362
|
|
|||
Thereafter
|
|
14,681
|
|
|
35,638
|
|
|
50,319
|
|
|||
|
|
$
|
453,014
|
|
|
$
|
334,636
|
|
|
$
|
787,650
|
|
|
|
Residual Values
|
||||||||||
|
|
Direct
|
|
|
|
|
||||||
End of initial lease term
|
|
Finance
|
|
Operating
|
|
|
||||||
December 31,
|
|
Leases
|
|
Leases
|
|
Total
|
||||||
2019
|
|
$
|
9,419
|
|
|
$
|
17,054
|
|
|
$
|
26,473
|
|
2020
|
|
13,969
|
|
|
21,338
|
|
|
35,307
|
|
|||
2021
|
|
7,243
|
|
|
30,966
|
|
|
38,209
|
|
|||
2022
|
|
12,444
|
|
|
22,766
|
|
|
35,210
|
|
|||
2023
|
|
8,894
|
|
|
21,632
|
|
|
30,526
|
|
|||
Thereafter
|
|
17,752
|
|
|
41,339
|
|
|
59,091
|
|
|||
|
|
$
|
69,721
|
|
|
$
|
155,095
|
|
|
$
|
224,816
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Rental income
|
|
$
|
104,889
|
|
|
$
|
87,524
|
|
|
$
|
69,083
|
|
Equipment maintenance contracts revenue, net of cost of sales
|
|
27,093
|
|
|
29,697
|
|
|
25,005
|
|
|||
Vendor promotional income
|
|
16,223
|
|
|
13,475
|
|
|
11,073
|
|
|||
Other lease related revenue
|
|
14,198
|
|
|
7,461
|
|
|
4,254
|
|
|||
Gain on sale of lease payments and leased equipment, net of residual write downs
|
|
20,333
|
|
|
12,381
|
|
|
13,241
|
|
|||
Income on lease investments, gross
|
|
182,736
|
|
|
150,538
|
|
|
122,656
|
|
|||
Less: depreciation on operating leases
|
|
(78,246
|
)
|
|
(63,951
|
)
|
|
(49,170
|
)
|
|||
Lease financing, net
|
|
$
|
104,490
|
|
|
$
|
86,587
|
|
|
$
|
73,486
|
|
Note 7.
|
Premises and Equipment
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Land and land improvements
|
|
$
|
76,827
|
|
|
$
|
78,329
|
|
Buildings
|
|
116,558
|
|
|
116,584
|
|
||
Furniture and equipment
|
|
185,242
|
|
|
174,778
|
|
||
Buildings and leasehold improvements
|
|
85,692
|
|
|
81,589
|
|
||
|
|
464,319
|
|
|
451,280
|
|
||
Accumulated depreciation
|
|
(193,705
|
)
|
|
(164,590
|
)
|
||
Premises and equipment, net
|
|
$
|
270,614
|
|
|
$
|
286,690
|
|
Note 8.
|
Goodwill and Intangibles
|
|
|
December 31,
|
||||||||||||||||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||
|
|
Banking
|
|
Leasing
|
|
Mortgage banking
|
|
Total
|
|
Banking
|
|
Leasing
|
|
Mortgage banking
|
|
Total
|
||||||||||||||||
Balance at beginning of period
|
|
$
|
959,285
|
|
|
$
|
40,640
|
|
|
$
|
3,623
|
|
|
$
|
1,003,548
|
|
|
$
|
960,398
|
|
|
$
|
40,640
|
|
|
$
|
—
|
|
|
$
|
1,001,038
|
|
Goodwill from business combinations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,113
|
)
|
|
—
|
|
|
3,623
|
|
|
2,510
|
|
||||||||
Impairment
|
|
—
|
|
|
—
|
|
|
(3,623
|
)
|
|
(3,623
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Balance at end of period
|
|
$
|
959,285
|
|
|
$
|
40,640
|
|
|
$
|
—
|
|
|
$
|
999,925
|
|
|
$
|
959,285
|
|
|
$
|
40,640
|
|
|
$
|
3,623
|
|
|
$
|
1,003,548
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Balance at beginning of period
|
|
$
|
54,766
|
|
|
$
|
62,959
|
|
Amortization expense
|
|
(7,852
|
)
|
|
(8,193
|
)
|
||
Balance at end of period
|
|
$
|
46,914
|
|
|
$
|
54,766
|
|
|
|
|
|
|
||||
Gross carrying amount
|
|
$
|
112,820
|
|
|
$
|
112,820
|
|
Accumulated amortization
|
|
(65,906
|
)
|
|
(58,054
|
)
|
||
Net book value
|
|
$
|
46,914
|
|
|
$
|
54,766
|
|
Years ending December 31,
|
Amount
|
||
2019
|
$
|
5,903
|
|
2020
|
4,870
|
|
|
2021
|
4,659
|
|
|
2022
|
3,696
|
|
|
2023
|
3,483
|
|
|
Thereafter
|
24,303
|
|
|
|
$
|
46,914
|
|
Note 9.
|
Deposits
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Demand deposit accounts, non-interest bearing
|
|
$
|
6,152,163
|
|
|
$
|
6,381,512
|
|
NOW and money market accounts
|
|
4,982,026
|
|
|
4,954,765
|
|
||
Savings accounts
|
|
1,191,498
|
|
|
1,167,810
|
|
||
Certificates of deposit, $250,000 or more
|
|
1,344,570
|
|
|
1,506,071
|
|
||
Other certificates of deposit
|
|
983,956
|
|
|
948,220
|
|
||
Total
|
|
$
|
14,654,213
|
|
|
$
|
14,958,378
|
|
2019
|
$
|
1,465,426
|
|
2020
|
609,146
|
|
|
2021
|
148,640
|
|
|
2022
|
82,711
|
|
|
2023
|
21,833
|
|
|
Thereafter
|
770
|
|
|
|
$
|
2,328,526
|
|
Note 10.
|
Short-Term Borrowings
|
|
|
December 31,
|
||||||||||||
|
|
2018
|
|
2017
|
||||||||||
|
|
Weighted
Average
|
|
|
|
Weighted
Average
|
|
|
||||||
|
|
Cost
|
|
Amount
|
|
Cost
|
|
Amount
|
||||||
Customer repurchase agreements
|
|
0.80
|
%
|
|
$
|
312,239
|
|
|
0.27
|
%
|
|
$
|
232,789
|
|
Federal Home Loan Bank advances
|
|
2.66
|
|
|
750,000
|
|
|
1.31
|
|
|
625,000
|
|
||
Federal funds purchased
|
|
2.76
|
|
|
407,816
|
|
|
1.26
|
|
|
3,250
|
|
||
Line of credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
2.29
|
%
|
|
$
|
1,470,055
|
|
|
1.03
|
%
|
|
$
|
861,039
|
|
Note 11.
|
Long-term Borrowings
|
|
|
December 31,
|
||||||||||||
|
|
2018
|
|
2017
|
||||||||||
|
|
Weighted
Average
|
|
|
|
Weighted
Average
|
|
|
||||||
|
|
Cost
|
|
Amount
|
|
Cost
|
|
Amount
|
||||||
Federal Home Loan Bank advances
|
|
2.85
|
%
|
|
$
|
94,147
|
|
|
1.73
|
%
|
|
$
|
231,317
|
|
Notes payable
|
|
4.95
|
|
|
82,407
|
|
|
4.14
|
|
|
90,807
|
|
||
Subordinated notes, net of issuance costs
|
|
4.00
|
|
|
173,127
|
|
|
4.00
|
|
|
173,034
|
|
||
Term note
|
|
—
|
|
|
—
|
|
|
3.31
|
|
|
10,000
|
|
||
Total
|
|
3.91
|
%
|
|
$
|
349,681
|
|
|
2.97
|
%
|
|
$
|
505,158
|
|
Note 12.
|
Junior Subordinated Notes Issued to Capital Trusts
|
|
|
MB Financial
Capital Trust II
|
|
MB Financial
Capital Trust III
|
|
MB Financial
Capital Trust IV
|
||||||
Junior Subordinated Notes:
|
|
|
|
|
|
|
|
|
|
|||
Principal balance
|
|
$
|
36,083
|
|
|
$
|
10,310
|
|
|
$
|
20,619
|
|
Annual interest rate
|
|
3-mo LIBOR + 1.40%
|
|
|
3-mo LIBOR + 1.50%
|
|
|
3-mo LIBOR + 1.52%
|
|
|||
Stated maturity date
|
|
September 15, 2035
|
|
|
September 23, 2036
|
|
|
September 15, 2036
|
|
|||
Call date
|
|
December 15, 2010
|
|
|
September 23, 2011
|
|
|
September 15, 2011
|
|
|||
Trust Preferred Securities:
|
|
|
|
|
|
|
|
|
|
|||
Face Value
|
|
$
|
35,000
|
|
|
$
|
10,000
|
|
|
$
|
20,000
|
|
Annual distribution rate
|
|
3-mo LIBOR + 1.40%
|
|
|
3-mo LIBOR + 1.50%
|
|
|
3-mo LIBOR + 1.52%
|
|
|||
Issuance date
|
|
August 2005
|
|
|
July 2006
|
|
|
August 2006
|
|
|||
Distribution dates
(1)
|
|
Quarterly
|
|
|
Quarterly
|
|
|
Quarterly
|
|
|
|
MB Financial
Capital Trust V
|
|
MB Financial
Capital Trust VI
|
||||
Junior Subordinated Notes:
|
|
|
|
|
|
|
||
Principal balance
|
|
$
|
30,928
|
|
|
$
|
23,196
|
|
Annual interest rate
|
|
3-mo LIBOR + 1.30%
|
|
|
3-mo LIBOR + 1.30%
|
|
||
Stated maturity date
|
|
December 15, 2037
|
|
|
October 30, 2037
|
|
||
Call date
|
|
December 15, 2012
|
|
|
October 30, 2012
|
|
||
Trust Preferred Securities:
|
|
|
|
|
|
|
||
Face Value
|
|
$
|
30,000
|
|
|
$
|
22,500
|
|
Annual distribution rate
|
|
3-mo LIBOR + 1.30%
|
|
|
3-mo LIBOR + 1.30%
|
|
||
Issuance date
|
|
September 2007
|
|
|
October 2007
|
|
||
Distribution dates
(1)
|
|
Quarterly
|
|
|
Quarterly
|
|
|
|
|
|
|
(1)
|
All distributions are cumulative and paid in cash.
|
Note 13.
|
Lease Commitments and Rental Expense
|
|
|
Gross
|
|
Sublease
|
|
Net
|
||||||
Years ending December 31,
|
|
Rents
|
|
Rents
|
|
Rents
|
||||||
2019
|
|
$
|
11,902
|
|
|
$
|
1,276
|
|
|
$
|
10,626
|
|
2020
|
|
8,272
|
|
|
532
|
|
|
7,740
|
|
|||
2021
|
|
6,988
|
|
|
195
|
|
|
6,793
|
|
|||
2022
|
|
5,452
|
|
|
16
|
|
|
5,436
|
|
|||
2023
|
|
4,308
|
|
|
—
|
|
|
4,308
|
|
|||
Thereafter
|
|
17,248
|
|
|
—
|
|
|
17,248
|
|
|||
|
|
$
|
54,170
|
|
|
$
|
2,019
|
|
|
$
|
52,151
|
|
Note 14.
|
Employee Benefit Plans
|
Note 15.
|
Income Taxes
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Deferred tax asset:
|
|
|
|
|
|
|
||
Allowance for credit losses
|
|
$
|
42,208
|
|
|
$
|
42,560
|
|
State net operating loss carryforwards
|
|
19,495
|
|
|
26,981
|
|
||
Other real estate owned
|
|
2,182
|
|
|
1,905
|
|
||
Stock options and restricted stock
|
|
5,875
|
|
|
5,929
|
|
||
Loans
|
|
7,766
|
|
|
12,762
|
|
||
Deferred compensation
|
|
7,812
|
|
|
6,918
|
|
||
Tax credit carryforwards
|
|
13,525
|
|
|
40,197
|
|
||
Bonus accrual
|
|
8,620
|
|
|
2,172
|
|
||
Other items
|
|
311
|
|
|
1,797
|
|
||
Total deferred tax asset
|
|
107,794
|
|
|
141,221
|
|
||
Valuation allowance
|
|
—
|
|
|
—
|
|
||
Total deferred tax asset, net of valuation allowance
|
|
107,794
|
|
|
141,221
|
|
||
Deferred tax liability:
|
|
|
|
|
|
|
||
Equipment leasing
|
|
(121,142
|
)
|
|
(127,465
|
)
|
||
Premises and equipment
|
|
(20,856
|
)
|
|
(17,250
|
)
|
||
Mortgage servicing rights
|
|
(66,749
|
)
|
|
(62,091
|
)
|
||
Deferred income from FDIC-assisted transactions
|
|
(12,583
|
)
|
|
(20,895
|
)
|
||
Deferred loan costs
|
|
(10,604
|
)
|
|
(7,555
|
)
|
||
Investment securities
|
|
(6,876
|
)
|
|
(5,933
|
)
|
||
FHLB stock dividends
|
|
(2,141
|
)
|
|
(2,195
|
)
|
||
Core deposit intangible
|
|
(7,239
|
)
|
|
(9,023
|
)
|
||
Other items
|
|
(4,794
|
)
|
|
(3,683
|
)
|
||
Total deferred tax liability
|
|
(252,984
|
)
|
|
(256,090
|
)
|
||
Net deferred tax liability
|
|
(145,190
|
)
|
|
(114,869
|
)
|
||
Net unrealized holding gain on investment securities available for sale
|
|
1,842
|
|
|
(959
|
)
|
||
Net deferred tax liability
|
|
$
|
(143,348
|
)
|
|
$
|
(115,828
|
)
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Current expense (benefit):
|
|
|
|
|
|
|
|
|
|
|||
Federal
|
|
$
|
(4,850
|
)
|
|
$
|
12,346
|
|
|
$
|
26,081
|
|
State
|
|
12,290
|
|
|
6,994
|
|
|
7,204
|
|
|||
Foreign
|
|
495
|
|
|
157
|
|
|
42
|
|
|||
|
|
7,935
|
|
|
19,497
|
|
|
33,327
|
|
|||
Deferred expense (benefit):
|
|
|
|
|
|
|
||||||
Federal
|
|
31,244
|
|
|
(45,401
|
)
|
|
37,690
|
|
|||
State
|
|
(923
|
)
|
|
10,679
|
|
|
8,227
|
|
|||
Foreign
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
30,321
|
|
|
(34,722
|
)
|
|
45,917
|
|
|||
Income tax expense (benefit)
|
|
$
|
38,256
|
|
|
$
|
(15,225
|
)
|
|
$
|
79,244
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Federal income tax expense at expected statutory rate
|
|
$
|
52,956
|
|
|
$
|
101,085
|
|
|
$
|
88,683
|
|
(Decrease) increase due to:
|
|
|
|
|
|
|
|
|
|
|||
Tax exempt income, net
|
|
(9,708
|
)
|
|
(17,164
|
)
|
|
(18,214
|
)
|
|||
Tax benefit resulting from change in tax rates
|
|
(13,741
|
)
|
|
(106,563
|
)
|
|
—
|
|
|||
State tax expense net of federal impact
|
|
8,980
|
|
|
11,487
|
|
|
10,030
|
|
|||
Stock-based compensation excess tax benefits
|
|
(1,597
|
)
|
|
(3,195
|
)
|
|
(2,330
|
)
|
|||
Non-deductible contingent consideration
|
|
406
|
|
|
138
|
|
|
1,026
|
|
|||
Non-includable increase in cash surrender value of life insurance
|
|
(1,046
|
)
|
|
(1,889
|
)
|
|
(1,432
|
)
|
|||
Non-deductible merger expense
|
|
878
|
|
|
—
|
|
|
298
|
|
|||
Adjustment of unrecognized tax benefit
|
|
(8
|
)
|
|
94
|
|
|
1
|
|
|||
Other items, net
|
|
1,136
|
|
|
782
|
|
|
1,182
|
|
|||
Income tax expense
|
|
$
|
38,256
|
|
|
$
|
(15,225
|
)
|
|
$
|
79,244
|
|
|
|
Unrecognized Tax Benefit
Without Interest
|
|
Interest on unrecognized
Tax Benefit
|
|
Total Unrecognized Tax
Benefit Including Interest
|
||||||
Balance at January 1, 2018
|
|
$
|
113
|
|
|
$
|
—
|
|
|
$
|
113
|
|
Decreases related to prior year tax positions
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
|||
Balance at December 31, 2018
|
|
$
|
105
|
|
|
$
|
—
|
|
|
$
|
105
|
|
Note 16.
|
Commitments and Contingencies
|
|
|
Contractual Amount
|
||||||
|
|
2018
|
|
2017
|
||||
Commitments to extend credit:
|
|
|
|
|
|
|
||
Home equity lines
|
|
$
|
179,521
|
|
|
$
|
203,922
|
|
Other commitments
|
|
4,058,853
|
|
|
4,073,044
|
|
||
Letters of credit:
|
|
|
|
|
|
|
||
Standby
|
|
173,755
|
|
|
161,014
|
|
||
Commercial
|
|
5,657
|
|
|
2,248
|
|
Note 17.
|
Regulatory Matters
|
|
|
|
|
|
|
|
|
|
|
To Be Well
Capitalized Under
|
|||||||||||
|
|
|
|
|
|
For Capital
|
|
Prompt Corrective
|
|||||||||||||
|
|
Actual
|
|
Adequacy Purposes
|
|
Action Provisions
|
|||||||||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
As of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total capital (to risk-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
|
$
|
2,379,813
|
|
|
13.67
|
%
|
|
$
|
1,392,791
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
MB Financial Bank
|
|
2,264,296
|
|
|
13.05
|
|
|
1,388,457
|
|
|
8.00
|
|
|
$
|
1,735,571
|
|
|
10.00
|
%
|
||
Tier 1 capital (to risk-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
|
$
|
1,959,413
|
|
|
11.25
|
%
|
|
1,044,593
|
|
|
6.00
|
%
|
|
N/A
|
|
|
N/A
|
|
||
MB Financial Bank
|
|
1,927,240
|
|
|
11.10
|
|
|
1,041,343
|
|
|
6.00
|
|
|
1,388,457
|
|
|
8.00
|
%
|
|||
Common equity tier 1 capital (to risk-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
|
$
|
1,764,694
|
|
|
10.14
|
%
|
|
783,445
|
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
||
MB Financial Bank
|
|
1,925,076
|
|
|
11.09
|
|
|
781,007
|
|
|
4.50
|
|
|
1,128,121
|
|
|
6.50
|
%
|
|||
Tier 1 capital (to average assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
|
$
|
1,959,413
|
|
|
10.50
|
%
|
|
746,268
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
||
MB Financial Bank
|
|
1,927,240
|
|
|
10.35
|
|
|
744,676
|
|
|
4.00
|
|
|
930,845
|
|
|
5.00
|
%
|
|||
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total capital (to risk-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
|
$
|
2,428,301
|
|
|
14.23
|
%
|
|
$
|
1,364,733
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
MB Financial Bank
|
|
2,217,547
|
|
|
13.03
|
|
|
1,361,855
|
|
|
8.00
|
|
|
$
|
1,702,318
|
|
|
10.00
|
%
|
||
Tier 1 capital (to risk-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
|
1,910,336
|
|
|
11.20
|
%
|
|
1,023,550
|
|
|
6.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
MB Financial Bank
|
|
1,883,140
|
|
|
11.06
|
|
|
1,021,391
|
|
|
6.00
|
|
|
1,361,855
|
|
|
8.00
|
%
|
|||
Common equity tier 1 capital (to risk-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
|
1,603,479
|
|
|
9.40
|
%
|
|
767,662
|
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
MB Financial Bank
|
|
1,883,140
|
|
|
11.06
|
|
|
766,043
|
|
|
4.50
|
|
|
1,106,507
|
|
|
6.50
|
%
|
|||
Tier 1 capital (to average assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
|
1,910,336
|
|
|
10.02
|
%
|
|
762,370
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
MB Financial Bank
|
|
1,883,140
|
|
|
9.90
|
|
|
760,797
|
|
|
4.00
|
|
|
950,996
|
|
|
5.00
|
%
|
Note 18.
|
Fair Value Measurements
|
|
|
Total
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant Other
Observable Inputs
(Level 2)
|
|
Significant
Unobservable Inputs
(Level 3)
|
||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury securities
|
|
$
|
75,141
|
|
|
$
|
75,141
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. Government sponsored agencies and enterprises
|
|
5,024
|
|
|
—
|
|
|
5,024
|
|
|
—
|
|
||||
States and political subdivisions
|
|
341,477
|
|
|
—
|
|
|
341,195
|
|
|
282
|
|
||||
Residential mortgage-backed securities
|
|
1,402,453
|
|
|
—
|
|
|
1,402,453
|
|
|
—
|
|
||||
Commercial mortgage-backed securities
|
|
31,587
|
|
|
—
|
|
|
31,587
|
|
|
—
|
|
||||
Corporate bonds
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Marketable equity securities
|
|
11,075
|
|
|
11,075
|
|
|
—
|
|
|
—
|
|
||||
Loans held for sale
|
|
45,550
|
|
|
—
|
|
|
45,550
|
|
|
—
|
|
||||
Loans
|
|
42,665
|
|
|
—
|
|
|
42,665
|
|
|
—
|
|
||||
Mortgage servicing rights
|
|
284,898
|
|
|
—
|
|
|
—
|
|
|
284,898
|
|
||||
Assets held in trust for deferred compensation
|
|
27,882
|
|
|
27,882
|
|
|
—
|
|
|
—
|
|
||||
Derivative financial instruments
|
|
45,168
|
|
|
1,534
|
|
|
43,526
|
|
|
108
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other liabilities
(1)
|
|
27,882
|
|
|
27,882
|
|
|
—
|
|
|
—
|
|
||||
Derivative financial instruments
|
|
41,300
|
|
|
215
|
|
|
41,085
|
|
|
—
|
|
||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government sponsored agencies and enterprises
|
|
$
|
23,007
|
|
|
$
|
—
|
|
|
$
|
23,007
|
|
|
$
|
—
|
|
States and political subdivisions
|
|
379,325
|
|
|
—
|
|
|
378,996
|
|
|
329
|
|
||||
Residential mortgage-backed securities
|
|
852,699
|
|
|
—
|
|
|
852,665
|
|
|
34
|
|
||||
Commercial mortgage-backed securities
|
|
72,035
|
|
|
—
|
|
|
72,035
|
|
|
—
|
|
||||
Corporate bonds
|
|
70,197
|
|
|
—
|
|
|
70,197
|
|
|
—
|
|
||||
Equity securities
|
|
11,063
|
|
|
11,063
|
|
|
—
|
|
|
—
|
|
||||
Loans held for sale
|
|
548,578
|
|
|
—
|
|
|
548,578
|
|
|
—
|
|
||||
Loans
|
|
40,531
|
|
|
—
|
|
|
40,531
|
|
|
—
|
|
||||
Mortgage servicing rights
|
|
276,279
|
|
|
—
|
|
|
—
|
|
|
276,279
|
|
||||
Assets held in trust for deferred compensation
|
|
21,410
|
|
|
21,410
|
|
|
—
|
|
|
—
|
|
||||
Derivative financial instruments
|
|
31,499
|
|
|
389
|
|
|
29,539
|
|
|
1,571
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other liabilities
(1)
|
|
21,410
|
|
|
21,410
|
|
|
—
|
|
|
—
|
|
||||
Derivative financial instruments
|
|
40,296
|
|
|
1,072
|
|
|
39,224
|
|
|
—
|
|
(1)
|
Liabilities associated with assets held in trust for deferred compensation
|
|
Fair Value at
|
|
|
|
|
|
|
||
|
December 31, 2018
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
|
||
|
(in thousands)
|
|
|
|
|
|
|
||
States and political subdivisions
|
$
|
282
|
|
|
Discounted cash flows
|
|
Credit assumption
|
|
35-40% Loss
|
Mortgage servicing rights
|
284,898
|
|
|
Discounted cash flows
|
|
CPR
|
|
6.5% - 7.3%
|
|
|
|
|
|
|
Discount rate
|
|
9.53 - 11.08
|
||
|
|
|
|
|
Maturity (months)
|
|
328 - 358
|
||
|
|
|
|
|
Delinquencies
|
|
1.92 - 4.36
|
||
|
|
|
|
|
Costs to service
|
|
$ 67 - $ 227
|
||
|
|
|
|
|
Additive delinquent costs to service
|
|
$ 175 - $ 1,000
|
||
Derivative financial instruments (mortgage
|
108
|
|
|
Sales cash flows
|
|
Expected closing ratio
|
|
70% - 95%
|
|
interest rate lock commitments)
|
|
|
|
|
Expected delivery price
|
|
99.48 bps - 105.31 bps
|
|
Fair Value at
|
|
|
|
|
|
|
||
|
December 31, 2017
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
|
||
|
(in thousands)
|
|
|
|
|
|
|
||
States and political subdivisions
|
$
|
329
|
|
|
Discounted cash flows
|
|
Credit assumption
|
|
40-45% Loss
|
Residential mortgage-backed securities
|
34
|
|
|
Discounted cash flows
|
|
Constant pre-payment rates (CPR)
|
|
1% - 3%
|
|
Mortgage servicing rights
|
276,279
|
|
|
Discounted cash flows
|
|
CPR
|
|
6.7% - 7.8%
|
|
|
|
|
|
|
Discount rate
|
|
9.53 - 11.06
|
||
|
|
|
|
|
Maturity (months)
|
|
324 - 358
|
||
|
|
|
|
|
Delinquencies
|
|
2.42 - 5.30
|
||
|
|
|
|
|
Costs to service
|
|
$ 67 - $ 227
|
||
|
|
|
|
|
Additive delinquent costs to service
|
|
$ 175 - $ 1,000
|
||
Derivative financial instruments (mortgage
|
1,571
|
|
|
Sales cash flows
|
|
Expected closing ratio
|
|
70% - 95%
|
|
interest rate lock commitments)
|
|
|
|
|
Expected delivery price
|
|
97.38 bps - 106.87 bps
|
(dollars in thousands, except for weighted average cost to service)
|
December 31, 2018
|
||
Weighted average prepayment speed (CPR)
|
6.76
|
%
|
|
Impact on fair value of 10% adverse change
|
$
|
(8,462
|
)
|
Impact on fair value of 20% adverse change
|
(16,499
|
)
|
|
|
|
||
Weighted average discount rate
|
9.84
|
%
|
|
Impact on fair value of 10% adverse change
|
$
|
(12,045
|
)
|
Impact on fair value of 20% adverse change
|
(23,128
|
)
|
|
|
|
||
Weighted average delinquency rate
|
4.08
|
%
|
|
Impact on fair value of 10% adverse change
|
$
|
(2,591
|
)
|
Impact on fair value of 20% adverse change
|
(4,558
|
)
|
|
|
|
||
Weighted average costs to service
|
$
|
90
|
|
Impact on fair value of 10% adverse change
|
(5,177
|
)
|
|
Impact on fair value of 20% adverse change
|
(10,355
|
)
|
|
|
Year Ended
December 31,
|
||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
|
|
Investment Securities
|
|
Mortgage Servicing Rights
|
|
Derivatives
|
||||||||||||||||||
Balance, beginning of period
|
|
$
|
363
|
|
|
$
|
544
|
|
|
$
|
276,279
|
|
|
$
|
238,011
|
|
|
$
|
1,571
|
|
|
$
|
3,160
|
|
Purchases
|
|
—
|
|
|
—
|
|
|
161
|
|
|
865
|
|
|
—
|
|
|
—
|
|
||||||
Originations
|
|
—
|
|
|
—
|
|
|
30,843
|
|
|
59,810
|
|
|
—
|
|
|
—
|
|
||||||
Included in earnings
|
|
(12
|
)
|
|
—
|
|
|
(22,385
|
)
|
|
(22,407
|
)
|
|
(1,463
|
)
|
|
(1,589
|
)
|
||||||
Principal payments
|
|
(69
|
)
|
|
(181
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Balance, ending of period
|
|
$
|
282
|
|
|
$
|
363
|
|
|
$
|
284,898
|
|
|
$
|
276,279
|
|
|
$
|
108
|
|
|
$
|
1,571
|
|
|
|
Total
|
|
Quoted Prices in Active
Markets for Identical
Assets (Level 1)
|
|
Significant Other
Observable Inputs
(Level 2)
|
|
Significant
Unobservable Inputs
(Level 3)
|
||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans
|
|
$
|
61,005
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
61,005
|
|
Non-financial assets:
|
|
|
|
|
|
|
|
|
||||||||
Foreclosed assets
|
|
11,354
|
|
|
—
|
|
|
—
|
|
|
11,354
|
|
||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans
|
|
$
|
60,569
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
60,569
|
|
Non-financial assets:
|
|
|
|
|
|
|
|
|
||||||||
Foreclosed assets
|
|
15,113
|
|
|
—
|
|
|
—
|
|
|
15,113
|
|
|
Fair Value at
|
|
Valuation
|
|
|
|
|
||
|
December 31, 2018
|
|
Technique
|
|
Unobservable Input
|
|
Range
|
||
|
|
|
|
|
|
|
|
||
Impaired loans
|
$
|
61,005
|
|
|
Appraisal of collateral
|
|
Appraisal adjustments - sales costs
|
|
5% - 10%
|
Foreclosed assets
|
11,354
|
|
|
Appraisal of collateral
|
|
Appraisal adjustments - sales costs
|
|
5% - 10%
|
|
Fair Value at
|
|
Valuation
|
|
|
|
|
||
|
December 31, 2017
|
|
Technique
|
|
Unobservable Input
|
|
Range
|
||
|
|
|
|
|
|
|
|
||
Impaired loans
|
$
|
60,569
|
|
|
Appraisal of collateral
|
|
Appraisal adjustments - sales costs
|
|
5% - 10%
|
Foreclosed assets
|
15,113
|
|
|
Appraisal of collateral
|
|
Appraisal adjustments - sales costs
|
|
5% - 10%
|
|
|
December 31, 2018
|
|||||||||||||||
|
|
Carrying Amount
|
|
Estimated Fair Value
|
Quoted Prices in Active
Markets for Identical
Assets (Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable Inputs
(Level 3)
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
$
|
503,153
|
|
|
$
|
503,153
|
|
$
|
503,153
|
|
$
|
—
|
|
$
|
—
|
|
Interest bearing deposits with banks
|
|
147,254
|
|
|
147,254
|
|
147,254
|
|
—
|
|
—
|
|
|||||
Investment securities available for sale
|
|
1,855,682
|
|
|
1,855,682
|
|
75,141
|
|
1,780,259
|
|
282
|
|
|||||
Investment securities held to maturity
|
|
901,684
|
|
|
919,660
|
|
—
|
|
919,660
|
|
—
|
|
|||||
Marketable equity securities
|
|
11,075
|
|
|
11,075
|
|
11,075
|
|
—
|
|
—
|
|
|||||
Non-marketable securities - FHLB and FRB stock
|
|
113,957
|
|
|
113,957
|
|
—
|
|
—
|
|
113,957
|
|
|||||
Loans held for sale
|
|
45,550
|
|
|
45,550
|
|
—
|
|
45,550
|
|
—
|
|
|||||
Loans, net
|
|
13,873,605
|
|
|
13,937,096
|
|
—
|
|
42,665
|
|
13,894,431
|
|
|||||
Accrued interest receivable
|
|
68,801
|
|
|
68,801
|
|
68,801
|
|
—
|
|
—
|
|
|||||
Derivative financial instruments
|
|
45,168
|
|
|
45,168
|
|
1,534
|
|
43,526
|
|
108
|
|
|||||
Financial Liabilities:
|
|
|
|
|
|
|
|
||||||||||
Non-interest bearing deposits
|
|
$
|
6,152,163
|
|
|
$
|
6,152,163
|
|
$
|
6,152,163
|
|
$
|
—
|
|
$
|
—
|
|
Interest bearing deposits
|
|
8,502,050
|
|
|
8,492,037
|
|
—
|
|
—
|
|
8,492,037
|
|
|||||
Short-term borrowings
|
|
1,470,055
|
|
|
1,470,190
|
|
—
|
|
—
|
|
1,470,190
|
|
|||||
Long-term borrowings
|
|
349,681
|
|
|
351,141
|
|
—
|
|
—
|
|
351,141
|
|
|||||
Junior subordinated notes issued to capital trusts
|
|
121,118
|
|
|
89,321
|
|
—
|
|
—
|
|
89,321
|
|
|||||
Accrued interest payable
|
|
7,216
|
|
|
7,216
|
|
7,216
|
|
—
|
|
—
|
|
|||||
Derivative financial instruments
|
|
41,300
|
|
|
41,300
|
|
215
|
|
41,085
|
|
—
|
|
|
|
December 31, 2017
|
|||||||||||||||
|
|
Carrying Amount
|
|
Estimated Fair Value
|
Quoted Prices in Active
Markets for Identical
Assets (Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable Inputs
(Level 3)
|
||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and due from banks
|
|
$
|
397,880
|
|
|
$
|
397,880
|
|
$
|
397,880
|
|
$
|
—
|
|
$
|
—
|
|
Interest bearing deposits with banks
|
|
181,341
|
|
|
181,341
|
|
181,341
|
|
—
|
|
—
|
|
|||||
Investment securities available for sale
|
|
1,408,326
|
|
|
1,408,326
|
|
11,063
|
|
1,396,900
|
|
363
|
|
|||||
Investment securities held to maturity
|
|
959,082
|
|
|
992,455
|
|
—
|
|
992,455
|
|
—
|
|
|||||
Non-marketable securities - FHLB and FRB stock
|
|
114,111
|
|
|
114,111
|
|
—
|
|
—
|
|
114,111
|
|
|||||
Loans held for sale
|
|
548,578
|
|
|
548,578
|
|
—
|
|
548,578
|
|
—
|
|
|||||
Loans, net
|
|
13,808,352
|
|
|
13,988,392
|
|
—
|
|
40,531
|
|
13,947,861
|
|
|||||
Accrued interest receivable
|
|
63,589
|
|
|
63,589
|
|
63,589
|
|
—
|
|
—
|
|
|||||
Derivative financial instruments
|
|
31,499
|
|
|
31,499
|
|
389
|
|
29,539
|
|
1,571
|
|
|||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||
Non-interest bearing deposits
|
|
$
|
6,381,512
|
|
|
$
|
6,381,512
|
|
$
|
6,381,512
|
|
$
|
—
|
|
$
|
—
|
|
Interest bearing deposits
|
|
8,576,866
|
|
|
8,569,368
|
|
—
|
|
—
|
|
8,569,368
|
|
|||||
Short-term borrowings
|
|
861,039
|
|
|
860,676
|
|
—
|
|
—
|
|
860,676
|
|
|||||
Long-term borrowings
|
|
505,158
|
|
|
513,725
|
|
—
|
|
—
|
|
513,725
|
|
|||||
Junior subordinated notes issued to capital trusts
|
|
211,494
|
|
|
170,965
|
|
—
|
|
—
|
|
170,965
|
|
|||||
Accrued interest payable
|
|
6,458
|
|
|
6,458
|
|
6,458
|
|
—
|
|
—
|
|
|||||
Derivative financial instruments
|
|
40,296
|
|
|
40,296
|
|
1,072
|
|
39,224
|
|
—
|
|
Note 19.
|
Stock Incentive Plans
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Total compensation expense for share-based payment plans during the year
|
|
$
|
18,727
|
|
|
$
|
17,476
|
|
|
$
|
16,868
|
|
Amount of related income tax benefit recognized in income
(1)
|
|
6,897
|
|
|
10,338
|
|
|
8,983
|
|
|
|
Number of
Options
|
|
Weighted
Average
Exercise
Price
|
|
Weighted
Average
Remaining
Contractual
Term
(in years)
|
|
Aggregate
Intrinsic
Value
(in thousands)
|
|||||
Options outstanding as of December 31, 2017
|
|
1,721,978
|
|
|
$
|
29.10
|
|
|
5.19
|
|
|
|
|
Granted
|
|
175,501
|
|
|
41.26
|
|
|
|
|
|
|
||
Exercised
|
|
(493,984
|
)
|
|
26.35
|
|
|
|
|
|
|
||
Expired
|
|
(2,362
|
)
|
|
32.99
|
|
|
|
|
|
|
||
Forfeited or cancelled
|
|
(28,939
|
)
|
|
31.63
|
|
|
|
|
|
|
||
Options outstanding as of December 31, 2018
|
|
1,372,194
|
|
|
$
|
31.58
|
|
|
5.71
|
|
$
|
12,327
|
|
Options exercisable as of December 31, 2018
|
|
887,401
|
|
|
$
|
28.68
|
|
|
4.55
|
|
$
|
10,137
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Risk-free interest rate
|
|
2.79
|
%
|
|
2.18
|
%
|
|
1.44
|
%
|
|||
Expected volatility of Company’s stock
|
|
25.96
|
%
|
|
22.71
|
%
|
|
28.08
|
%
|
|||
Expected dividend yield
|
|
2.08
|
%
|
|
1.68
|
%
|
|
2.19
|
%
|
|||
Expected life of options (years)
|
|
5.5
|
|
|
5.8
|
|
|
5.5
|
|
|||
Weighted average fair value per option of options granted during the year
|
|
$
|
9.21
|
|
|
$
|
9.35
|
|
|
$
|
6.66
|
|
|
|
Number of
Shares
|
|
Weighted
Average
Grant Date
Fair Value
|
|||
Shares and Units Outstanding at December 31, 2017
|
|
973,201
|
|
|
$
|
37.03
|
|
Granted
|
|
428,752
|
|
|
41.65
|
|
|
Vested
|
|
(371,640
|
)
|
|
35.17
|
|
|
Forfeited or cancelled
|
|
(114,146
|
)
|
|
35.89
|
|
|
Shares and Units Outstanding at December 31, 2018
|
|
916,167
|
|
|
40.09
|
|
Note 20.
|
Derivative Financial Instruments
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||||||||||||||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||
|
|
Notional
|
|
Estimated
|
|
Notional
|
|
Estimated
|
|
Notional
|
|
Estimated
|
|
Notional
|
|
Estimated
|
||||||||||||||||
|
|
Amount
|
|
Fair Value
|
|
Amount
|
|
Fair Value
|
|
Amount
|
|
Fair Value
|
|
Amount
|
|
Fair Value
|
||||||||||||||||
Derivative instruments designated as hedges of fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap contracts
(1)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
0
|
|
|
$
|
58
|
|
|
$
|
(1
|
)
|
Stand-alone derivative instruments:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap contracts
|
|
1,803,901
|
|
|
31,222
|
|
|
1,563,109
|
|
|
21,217
|
|
|
1,803,901
|
|
|
(31,222
|
)
|
|
1,563,109
|
|
|
(21,217
|
)
|
||||||||
Interest rate options contracts
|
|
465,902
|
|
|
2,663
|
|
|
372,927
|
|
|
1,887
|
|
|
465,902
|
|
|
(2,663
|
)
|
|
372,927
|
|
|
(1,887
|
)
|
||||||||
Foreign exchange contracts
|
|
49,327
|
|
|
1,393
|
|
|
40,713
|
|
|
1,934
|
|
|
46,845
|
|
|
(1,117
|
)
|
|
34,029
|
|
|
(1,759
|
)
|
||||||||
Spot foreign exchange contracts
|
|
7,026
|
|
|
12
|
|
|
1,424
|
|
|
23
|
|
|
1,628
|
|
|
(4
|
)
|
|
24
|
|
|
—
|
|
||||||||
Mortgage banking derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swap contracts
|
|
310,000
|
|
|
8,235
|
|
|
458,000
|
|
|
4,479
|
|
|
225,000
|
|
|
(6,079
|
)
|
|
1,008,000
|
|
|
(14,360
|
)
|
||||||||
Treasury futures contracts
|
|
152,500
|
|
|
794
|
|
|
28,000
|
|
|
39
|
|
|
5,000
|
|
|
(2
|
)
|
|
30,000
|
|
|
(222
|
)
|
||||||||
TBA mortgage securities
|
|
75,000
|
|
|
741
|
|
|
15,000
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
100,000
|
|
|
(63
|
)
|
||||||||
Forward loan sale commitments
|
|
—
|
|
|
—
|
|
|
259,000
|
|
|
333
|
|
|
22,500
|
|
|
(213
|
)
|
|
483,500
|
|
|
(787
|
)
|
||||||||
Interest rate lock commitments
|
|
12,671
|
|
|
108
|
|
|
404,557
|
|
|
1,571
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total stand-alone derivative instruments
|
|
2,876,327
|
|
|
45,168
|
|
|
3,142,730
|
|
|
31,499
|
|
|
2,570,776
|
|
|
(41,300
|
)
|
|
3,591,589
|
|
|
(40,295
|
)
|
||||||||
Total
|
|
$
|
2,876,327
|
|
|
$
|
45,168
|
|
|
$
|
3,142,730
|
|
|
$
|
31,499
|
|
|
$
|
2,570,781
|
|
|
$
|
(41,300
|
)
|
|
$
|
3,591,647
|
|
|
$
|
(40,296
|
)
|
|
|
Years Ended
December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Derivative instruments designated as hedges of fair value:
|
|
|
|
|
|
|
|
|
|
|||
Interest rate swap contracts
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
5
|
|
Stand-alone derivative instruments:
|
|
|
|
|
|
|
|
|
|
|||
Interest rate swap contracts
|
|
6,253
|
|
|
8,233
|
|
|
7,571
|
|
|||
Interest rate options contracts
|
|
—
|
|
|
—
|
|
|
36
|
|
|||
Foreign exchange contracts
|
|
612
|
|
|
269
|
|
|
970
|
|
|||
Spot foreign exchange contracts
|
|
3,018
|
|
|
2,682
|
|
|
963
|
|
|||
Mortgage related derivatives
|
|
454
|
|
|
(31,698
|
)
|
|
(1,509
|
)
|
|||
Total stand-alone derivative instruments
|
|
10,337
|
|
|
(20,514
|
)
|
|
8,031
|
|
|||
Total
|
|
$
|
10,338
|
|
|
$
|
(20,511
|
)
|
|
$
|
8,036
|
|
|
|
Financial Assets
|
|
Financial Liabilities
|
||||||||||||||||||||
|
|
Gross Amount Recognized
|
|
Gross Amount Offset
|
|
Net Amount Recognized
|
|
Gross Amount Recognized
|
|
Gross Amount Offset
|
|
Net Amount Recognized
|
||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps, caps and floors
|
|
$
|
18,791
|
|
|
$
|
—
|
|
|
$
|
18,791
|
|
|
$
|
15,098
|
|
|
$
|
—
|
|
|
$
|
15,098
|
|
Foreign exchange contracts
|
|
896
|
|
|
—
|
|
|
896
|
|
|
540
|
|
|
—
|
|
|
540
|
|
||||||
Mortgage related derivatives
|
|
9,771
|
|
|
—
|
|
|
9,771
|
|
|
6,295
|
|
|
—
|
|
|
6,295
|
|
||||||
Total derivatives
|
|
29,458
|
|
|
—
|
|
|
29,458
|
|
|
21,933
|
|
|
—
|
|
|
21,933
|
|
||||||
Repurchase agreements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
312,239
|
|
|
—
|
|
|
312,239
|
|
||||||
Total
|
|
$
|
29,458
|
|
|
$
|
—
|
|
|
$
|
29,458
|
|
|
$
|
334,172
|
|
|
$
|
—
|
|
|
$
|
334,172
|
|
|
|
Financial Assets
|
|
Financial Liabilities
|
||||||||||||||||||||||||||||
|
|
Net Amount Recognized
|
|
Financial Instruments
|
|
Collateral
|
|
Net Amount
|
|
Net Amount Recognized
|
|
Financial Instruments
|
|
Collateral
|
|
Net Amount
|
||||||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Counterparty A
|
|
$
|
6,046
|
|
|
$
|
(3,993
|
)
|
|
$
|
(2,053
|
)
|
|
$
|
—
|
|
|
$
|
3,993
|
|
|
$
|
(3,993
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Counterparty B
|
|
1,234
|
|
|
(151
|
)
|
|
(1,083
|
)
|
|
—
|
|
|
151
|
|
|
(151
|
)
|
|
—
|
|
|
—
|
|
||||||||
Counterparty C
|
|
1,660
|
|
|
(713
|
)
|
|
(947
|
)
|
|
—
|
|
|
713
|
|
|
(713
|
)
|
|
—
|
|
|
—
|
|
||||||||
Other counterparties
|
|
20,518
|
|
|
(16,599
|
)
|
|
(3,741
|
)
|
|
178
|
|
|
17,076
|
|
|
(16,599
|
)
|
|
(358
|
)
|
|
119
|
|
||||||||
Total derivatives
|
|
29,458
|
|
|
(21,456
|
)
|
|
(7,824
|
)
|
|
178
|
|
|
21,933
|
|
|
(21,456
|
)
|
|
(358
|
)
|
|
119
|
|
||||||||
Repurchase agreements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
312,239
|
|
|
—
|
|
|
(312,239
|
)
|
|
—
|
|
||||||||
Total
|
|
$
|
29,458
|
|
|
$
|
(21,456
|
)
|
|
$
|
(7,824
|
)
|
|
$
|
178
|
|
|
$
|
334,172
|
|
|
$
|
(21,456
|
)
|
|
$
|
(312,597
|
)
|
|
$
|
119
|
|
|
|
Financial Assets
|
|
Financial Liabilities
|
||||||||||||||||||||
|
|
Gross Amount Recognized
|
|
Gross Amount Offset
|
|
Net Amount Recognized
|
|
Gross Amount Recognized
|
|
Gross Amount Offset
|
|
Net Amount Recognized
|
||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps, caps and floors
|
|
$
|
11,659
|
|
|
$
|
—
|
|
|
$
|
11,659
|
|
|
$
|
11,562
|
|
|
$
|
—
|
|
|
$
|
11,562
|
|
Foreign exchange contracts
|
|
1,013
|
|
|
—
|
|
|
1,013
|
|
|
953
|
|
|
—
|
|
|
953
|
|
||||||
Mortgage related derivatives
|
|
4,868
|
|
|
—
|
|
|
4,868
|
|
|
15,432
|
|
|
—
|
|
|
15,432
|
|
||||||
Total derivatives
|
|
17,540
|
|
|
—
|
|
|
17,540
|
|
|
27,947
|
|
|
—
|
|
|
27,947
|
|
||||||
Repurchase agreements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
232,789
|
|
|
—
|
|
|
232,789
|
|
||||||
Total
|
|
$
|
17,540
|
|
|
$
|
—
|
|
|
$
|
17,540
|
|
|
$
|
260,736
|
|
|
$
|
—
|
|
|
$
|
260,736
|
|
|
|
Financial Assets
|
|
Financial Liabilities
|
||||||||||||||||||||||||||||
|
|
Net Amount Recognized
|
|
Financial Instruments
|
|
Collateral
|
|
Net Amount
|
|
Net Amount Recognized
|
|
Financial Instruments
|
|
Collateral
|
|
Net Amount
|
||||||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Counterparty A
|
|
$
|
6,068
|
|
|
$
|
(6,068
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,807
|
|
|
$
|
(6,068
|
)
|
|
$
|
(7,739
|
)
|
|
$
|
—
|
|
Counterparty B
|
|
3,261
|
|
|
(3,261
|
)
|
|
—
|
|
|
—
|
|
|
5,595
|
|
|
(3,261
|
)
|
|
(2,334
|
)
|
|
—
|
|
||||||||
Counterparty C
|
|
5,285
|
|
|
(3,640
|
)
|
|
—
|
|
|
1,645
|
|
|
3,640
|
|
|
(3,640
|
)
|
|
—
|
|
|
—
|
|
||||||||
Other counterparties
|
|
2,926
|
|
|
(1,750
|
)
|
|
—
|
|
|
1,176
|
|
|
4,905
|
|
|
(1,750
|
)
|
|
(3,150
|
)
|
|
5
|
|
||||||||
Total derivatives
|
|
17,540
|
|
|
(14,719
|
)
|
|
—
|
|
|
2,821
|
|
|
27,947
|
|
|
(14,719
|
)
|
|
(13,223
|
)
|
|
5
|
|
||||||||
Repurchase agreements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
232,789
|
|
|
—
|
|
|
(232,789
|
)
|
|
—
|
|
||||||||
Total
|
|
$
|
17,540
|
|
|
$
|
(14,719
|
)
|
|
$
|
—
|
|
|
$
|
2,821
|
|
|
$
|
260,736
|
|
|
$
|
(14,719
|
)
|
|
$
|
(246,012
|
)
|
|
$
|
5
|
|
Note 21.
|
Operating Segments
|
|
Banking
|
|
Leasing
|
|
Mortgage Banking
|
|
Consolidated
|
||||||||
Year ended December 31,
|
|
|
|
|
|
|
|
||||||||
2018
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
592,514
|
|
|
$
|
9,563
|
|
|
$
|
35,726
|
|
|
$
|
637,803
|
|
Provision for credit losses
|
46,104
|
|
|
1,204
|
|
|
(107
|
)
|
|
47,201
|
|
||||
Non-interest income
|
179,136
|
|
|
100,140
|
|
|
63,353
|
|
|
342,629
|
|
||||
Non-interest expense
(1)
|
486,212
|
|
|
63,897
|
|
|
130,951
|
|
|
681,060
|
|
||||
Income (loss) before income taxes
|
239,334
|
|
|
44,602
|
|
|
(31,765
|
)
|
|
252,171
|
|
||||
Income tax expense (benefit)
|
38,602
|
|
|
8,158
|
|
|
(8,504
|
)
|
|
38,256
|
|
||||
Net income (loss)
|
$
|
200,732
|
|
|
$
|
36,444
|
|
|
$
|
(23,261
|
)
|
|
$
|
213,915
|
|
Total assets
|
$
|
17,070,713
|
|
|
$
|
1,464,380
|
|
|
$
|
1,671,933
|
|
|
$
|
20,207,026
|
|
Year ended December 31,
|
|
|
|
|
|
|
|
||||||||
2017
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
550,499
|
|
|
$
|
9,902
|
|
|
$
|
41,976
|
|
|
$
|
602,377
|
|
Provision for credit losses
|
16,555
|
|
|
3,858
|
|
|
1,180
|
|
|
21,593
|
|
||||
Non-interest income
|
174,120
|
|
|
86,029
|
|
|
109,225
|
|
|
369,374
|
|
||||
Non-interest expense
(1)
|
462,055
|
|
|
57,331
|
|
|
141,957
|
|
|
661,343
|
|
||||
Income before income taxes
|
246,009
|
|
|
34,742
|
|
|
8,064
|
|
|
288,815
|
|
||||
Income tax expense (benefit)
|
65,137
|
|
|
(51,140
|
)
|
|
(29,222
|
)
|
|
(15,225
|
)
|
||||
Net income
|
$
|
180,872
|
|
|
$
|
85,882
|
|
|
$
|
37,286
|
|
|
$
|
304,040
|
|
Total assets
|
$
|
16,448,960
|
|
|
$
|
1,403,690
|
|
|
$
|
2,234,290
|
|
|
$
|
20,086,940
|
|
Year ended December 31,
|
|
|
|
|
|
|
|
||||||||
2016
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
$
|
475,133
|
|
|
$
|
9,415
|
|
|
$
|
33,343
|
|
|
$
|
517,891
|
|
Provision for credit losses
|
18,583
|
|
|
295
|
|
|
685
|
|
|
19,563
|
|
||||
Non-interest income
|
153,250
|
|
|
73,503
|
|
|
151,397
|
|
|
378,150
|
|
||||
Non-interest expense
(1)
|
421,733
|
|
|
48,450
|
|
|
152,915
|
|
|
623,098
|
|
||||
Income before income taxes
|
188,067
|
|
|
34,173
|
|
|
31,140
|
|
|
253,380
|
|
||||
Income tax expense
|
53,263
|
|
|
13,525
|
|
|
12,456
|
|
|
79,244
|
|
||||
Net income
|
$
|
134,804
|
|
|
$
|
20,648
|
|
|
$
|
18,684
|
|
|
$
|
174,136
|
|
Total assets
|
$
|
16,368,881
|
|
|
$
|
1,224,169
|
|
|
$
|
1,709,267
|
|
|
$
|
19,302,317
|
|
(1)
|
Includes merger related and repositioning expenses of
$15.1 million
,
$9.9 million
and
$23.7 million
in the Banking Segment for the years ended
December 31, 2018
,
2017
, and
2016
, respectively, and
$32.4 million
in the Mortgage Banking Segment for the year ended December 31, 2018.
|
Note 22.
|
Condensed Parent Company Financial Information
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
|
||||
Cash
|
|
$
|
106,808
|
|
|
$
|
219,086
|
|
Investments in subsidiaries
|
|
2,990,651
|
|
|
2,961,822
|
|
||
Other assets
|
|
85,291
|
|
|
73,438
|
|
||
Total assets
|
|
$
|
3,182,750
|
|
|
$
|
3,254,346
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
||
Short-term borrowings
|
|
$
|
—
|
|
|
$
|
—
|
|
Long-term borrowings
|
|
—
|
|
|
10,000
|
|
||
Junior subordinated notes issued to capital trusts
|
|
121,118
|
|
|
211,494
|
|
||
Other liabilities
|
|
26,784
|
|
|
23,029
|
|
||
Stockholders’ equity
|
|
3,034,848
|
|
|
3,009,823
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
3,182,750
|
|
|
$
|
3,254,346
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Dividends from subsidiaries
|
|
$
|
200,000
|
|
|
$
|
78,846
|
|
|
$
|
112,000
|
|
Interest and other income
|
|
(908
|
)
|
|
4,148
|
|
|
1,913
|
|
|||
Interest and other expense
|
|
29,167
|
|
|
18,990
|
|
|
14,990
|
|
|||
Income before income tax benefit and equity in undistributed net income of subsidiaries
|
|
169,925
|
|
|
64,004
|
|
|
98,923
|
|
|||
Income tax benefit
|
|
(8,045
|
)
|
|
(8,253
|
)
|
|
(5,303
|
)
|
|||
Income before equity in undistributed net income of subsidiaries
|
|
177,970
|
|
|
72,257
|
|
|
104,226
|
|
|||
Equity in undistributed net income of subsidiaries
|
|
35,945
|
|
|
231,783
|
|
|
69,910
|
|
|||
Net income
|
|
213,915
|
|
|
304,040
|
|
|
174,136
|
|
|||
Dividends on preferred shares
|
|
12,100
|
|
|
8,007
|
|
|
8,009
|
|
|||
Return from preferred stockholders due to redemption
|
|
(15,280
|
)
|
|
—
|
|
|
—
|
|
|||
Net income available to common stockholders
|
|
$
|
217,095
|
|
|
$
|
296,033
|
|
|
$
|
166,127
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash Flows From Operating Activities
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
213,915
|
|
|
$
|
304,040
|
|
|
$
|
174,136
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Compensation expense for share-based payment plans
|
|
18,727
|
|
|
17,476
|
|
|
16,868
|
|
|||
Equity in undistributed net income of subsidiaries
|
|
(35,945
|
)
|
|
(231,783
|
)
|
|
(69,910
|
)
|
|||
Loss on extinguishment of debt
|
|
11,898
|
|
|
—
|
|
|
—
|
|
|||
Change in other assets and other liabilities
|
|
(14,172
|
)
|
|
163
|
|
|
(28,546
|
)
|
|||
Net cash provided by operating activities
|
|
194,423
|
|
|
89,896
|
|
|
92,548
|
|
|||
Cash Flows From Investing Activities
|
|
|
|
|
|
|
|
|
|
|||
Investments in and advances to subsidiaries
|
|
—
|
|
|
—
|
|
|
(2,000
|
)
|
|||
Net cash paid in business acquisition
|
|
—
|
|
|
—
|
|
|
(83,163
|
)
|
|||
Net cash used in investing activities
|
|
—
|
|
|
—
|
|
|
(85,163
|
)
|
|||
Cash Flows From Financing Activities
|
|
|
|
|
|
|
|
|
|
|||
Treasury stock transactions, net
|
|
(1,685
|
)
|
|
(3,271
|
)
|
|
(3,837
|
)
|
|||
Stock options exercised
|
|
4,063
|
|
|
2,504
|
|
|
1,410
|
|
|||
Dividends paid on common stock
|
|
(81,883
|
)
|
|
(69,346
|
)
|
|
(58,177
|
)
|
|||
Dividends paid on preferred stock
|
|
(14,100
|
)
|
|
(8,007
|
)
|
|
(8,009
|
)
|
|||
Issuance of preferred stock, net of issuance costs
|
|
—
|
|
|
194,719
|
|
|
—
|
|
|||
Redemption of preferred stock
|
|
(100,000
|
)
|
|
—
|
|
|
—
|
|
|||
Net decrease short-term borrowings
|
|
—
|
|
|
(10,000
|
)
|
|
(15,000
|
)
|
|||
Principal paid on long-term borrowings
|
|
(10,000
|
)
|
|
(4,000
|
)
|
|
(2,000
|
)
|
|||
Redemption of junior subordinated notes issued to capital trusts
|
|
(103,096
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash (used in) provided by financing activities
|
|
(306,701
|
)
|
|
102,599
|
|
|
(85,613
|
)
|
|||
Net (decrease) increase in cash
|
|
(112,278
|
)
|
|
192,495
|
|
|
(78,228
|
)
|
|||
Cash:
|
|
|
|
|
|
|
|
|
|
|||
Beginning of year
|
|
219,086
|
|
|
26,591
|
|
|
104,819
|
|
|||
End of year
|
|
$
|
106,808
|
|
|
$
|
219,086
|
|
|
$
|
26,591
|
|
Note 23.
|
Preferred Stock
|
Note 24.
|
Definitive Merger Agreement
|
Note 25.
|
Subsequent Event
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A.
|
Controls and Procedures
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Plan Category
|
|
Number of Shares to
be Issued upon
Exercise of
Outstanding Options,
warrants and rights
(1)
|
|
Weighted Average
Exercise Price of
Outstanding Options,
warrants and rights
(1)
|
|
Number of Shares
Remaining Available for
Future Issuance Under
Equity Compensation Plans
(Excluding Shares Reflected
in the first column)
(2)
|
||||
Equity compensation plans approved by stockholders
|
|
2,247,641
|
|
|
$
|
—
|
|
|
2,138,446
|
|
Equity compensation plans not approved by stockholders
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
Total
|
|
2,247,641
|
|
|
$
|
—
|
|
|
2,138,446
|
|
Item 13.
|
Certain Relationships, Related Transactions, and Director Independence
|
Item 14.
|
Principal Accountant Fees and Services
|
Item 15.
|
Exhibits and Financial Statement Schedules
|
(a)(1)
|
|
Financial Statements: See Part II—Item 8. Financial Statements and Supplementary Data.
|
|
|
|
(a)(2)
|
|
Financial Statement Schedules: All financial statement schedules have been omitted as the information is not required under the related instructions or is not applicable.
|
|
|
|
(a)(3)
|
|
Exhibits: See Exhibit Index.
|
|
|
|
(b)
|
|
Exhibits: See Exhibit Index.
|
EXHIBIT INDEX
|
||
Exhibit Number
|
|
Description
|
|
|
|
|
||
|
|
|
|
||
|
|
|
4.1
|
|
The Registrant hereby agrees to furnish to the Commission, upon request, the instruments defining the rights of the holders of each issue of long-term debt of the Registrant and its consolidated subsidiaries
|
|
|
|
|
||
|
|
|
10.1
|
|
Reserved
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
10.5
|
|
Reserved
|
|
|
|
10.5A
|
|
Reserved
|
|
|
|
10.5B
|
|
Reserved
|
|
|
|
|
EXHIBIT INDEX
|
||
Exhibit Number
|
|
Description
|
|
|
|
|
||
|
|
|
|
||
|
|
|
10.10
|
|
Reserved
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
EXHIBIT INDEX
|
||
Exhibit Number
|
|
Description
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
EXHIBIT INDEX
|
||
Exhibit Number
|
|
Description
|
|
|
|
|
||
|
|
|
|
||
|
|
|
10.24
|
|
Reserved
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
EXHIBIT INDEX
|
||
Exhibit Number
|
|
Description
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
101
|
|
The following financial statements from the MB Financial, Inc. Annual Report on Form 10-K for the year ended December 31, 2018, formatted in Extensive Business Reporting Language (XBRL): (i) consolidated balance sheets, (ii) consolidated statements of operations, (iii) consolidated statements of comprehensive income, (iv) consolidated statements of cash flows and (v) the notes to consolidated financial statements*
|
By:
|
/s/Mitchell Feiger
|
|
Mitchell Feiger
|
|
President and Chief Executive Officer
|
|
|
March 1, 2019
|
Signatures
|
|
Title
|
|
|
|
|
|
|
|
|
|
/s/Mitchell Feiger
|
|
Director, President and Chief Executive Officer
|
|
|
|
Mitchell Feiger
|
|
(Principal Executive Officer)
|
|
March 1, 2019
|
|
|
|
|
|
|
|
/s/Randall T. Conte
|
|
Vice President and Chief Financial Officer
|
|
|
|
Randall T. Conte
|
|
(Principal Financial Officer)
|
|
March 1, 2019
|
|
|
|
|
|
|
|
/s/John Francoeur
|
|
Chief Accounting Officer
|
|
|
|
John Francoeur
|
|
(Principal Accounting Officer)
|
|
March 1, 2019
|
|
|
|
|
|
|
|
/s/Thomas H. Harvey*
|
|
Director
|
|
March 1, 2019
|
|
Thomas H. Harvey
|
|
|
|
|
|
|
|
|
|
|
|
/s/David P. Bolger*
|
|
Director
|
|
March 1, 2019
|
|
David P. Bolger
|
|
|
|
|
|
|
|
|
|
|
|
/s/C. Bryan Daniels*
|
|
Director
|
|
March 1, 2019
|
|
C. Bryan Daniels
|
|
|
|
|
|
|
|
|
|
|
|
/s/Sunil Garg*
|
|
Director
|
|
March 1, 2019
|
|
Sunil Garg
|
|
|
|
|
|
|
|
|
|
|
|
/s/Charles J. Gries*
|
|
Director
|
|
March 1, 2019
|
|
Charles J. Gries
|
|
|
|
|
|
|
|
|
|
|
|
/s/James N. Hallene*
|
|
Director
|
|
March 1, 2019
|
|
James N. Hallene
|
|
|
|
|
|
|
|
|
|
|
|
/s/Richard J. Holmstrom*
|
|
Director
|
|
March 1, 2019
|
|
Richard J. Holmstrom
|
|
|
|
|
|
|
|
|
|
|
|
/s/Mark A. Hoppe*
|
|
Director
|
|
March 1, 2019
|
|
Mark A. Hoppe
|
|
|
|
|
|
|
|
|
|
|
|
/s/Karen J. May*
|
|
Director
|
|
March 1, 2019
|
|
Karen J. May
|
|
|
|
|
|
|
|
|
|
|
|
/s/Renee Togher*
|
|
Director
|
|
March 1, 2019
|
|
Renee Togher
|
|
|
|
|
|
|
|
|
|
|
|
*
By:
|
/s/Mitchell Feiger
|
|
Attorney-in-Fact
|
|
|
|
|
|
|
|
|
MB FINANCIAL, INC.
|
||||
SUBSIDIARIES OF MB FINANCIAL, INC.
|
||||
|
|
|
|
|
Subsidiary
|
|
Ownership
|
|
Jurisdiction
|
MB Financial Bank, N.A.
|
|
Wholly-owned subsidiary of MB Financial, Inc.
|
|
United States
|
MB Financial Capital Trust II
|
|
MB Financial, Inc. owns 100% of the common securities of the trust
|
|
Delaware
|
Ashland Management Agency, LLC
|
|
MB Financial Bank owns 99.8% and MB Financial, Inc. owns 0.2%
|
|
Illinois
|
MB Financial Capital Trust III
|
|
MB Financial, Inc. owns 100% of the common securities of the trust
|
|
Delaware
|
MB Financial Capital Trust IV
|
|
MB Financial, Inc. owns 100% of the common securities of the trust
|
|
Delaware
|
MB Financial Capital Trust V
|
|
MB Financial, Inc. owns 100% of the common securities of the trust
|
|
Delaware
|
MB Financial Capital Trust VI
|
|
MB Financial, Inc. owns 100% of the common securities of the trust
|
|
Delaware
|
MB1200 Corporation
|
|
Wholly-owned subsidiary of MB Financial Bank
|
|
Illinois
|
MB Financial Deferred Exchange Corporation
|
|
Wholly-owned subsidiary of MB Financial Bank
|
|
Illinois
|
MB Financial Community Development Corporation
|
|
Wholly-owned subsidiary of MB Financial Bank
|
|
Illinois
|
MB Financial Center, LLC
|
|
Wholly-owned subsidiary of MB Financial Bank
|
|
Illinois
|
MB Financial Center Land Owner, LLC
|
|
Wholly-owned subsidiary of MB Financial Bank
|
|
Illinois
|
MB Equipment Finance, LLC
|
|
Wholly-owned subsidiary of MB Financial Bank
|
|
Maryland
|
MSA Holdings, LLC
|
|
Wholly-owned subsidiary of MB Financial Bank
|
|
Illinois
|
MainStreet Investment Advisors, LLC
|
|
Wholly-owned subsidiary of MSA Holdings, LLC
|
|
Illinois
|
Cedar Hill Associates, LLC
|
|
Wholly-owned subsidiary of MSA Holdings, LLC
|
|
Illinois
|
MB Financial International, Inc.
|
|
Wholly-owned subsidiary of MB Financial Bank
|
|
Illinois
|
LaSalle Solutions Canada Inc.
|
|
Wholly-owned subsidiary of MB Financial International, Inc.
|
|
Canada
|
MB Business Capital Canada Inc.
|
|
Wholly-owned subsidiary of MB Financial International, Inc.
|
|
Canada
|
Signature
|
Title
|
|
|
/s/Mitchell Feiger
|
Director, President and Chief Executive Officer
|
Mitchell Feiger
|
(Principal Executive Officer)
|
|
|
/s/Randall T. Conte
|
Vice President and Chief Financial Officer
|
Randall T. Conte
|
(Principal Financial Officer)
|
|
|
/s/John Francoeur
|
Chief Accounting Officer
|
John Francoeur
|
(Principal Accounting Officer)
|
|
|
/s/David P. Bolger
|
Director
|
David P. Bolger
|
|
|
|
/s/C. Bryan Daniels
|
Director
|
C. Bryan Daniels
|
|
|
|
/s/James N. Hallene
|
Director
|
James N. Hallene
|
|
|
|
/s/Thomas H. Harvey
|
Director
|
Thomas H. Harvey
|
|
|
|
/s/Richard J. Holmstrom
|
Director
|
Richard J. Holmstrom
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/s/Mark A. Hoppe
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Director
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Mark A. Hoppe
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Signature
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Title
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/s/Sunil Garg
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Director
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Sunil Garg
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/s/Charles J. Gries
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Director
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Charles J. Gries
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/s/Karen J. May
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Director
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Karen J. May
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/s/Renee Togher
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Director
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Renee Togher
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Date:
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March 1, 2019
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/s/Mitchell Feiger
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Mitchell Feiger
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President and Chief Executive Officer
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Date:
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March 1, 2019
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/s/Randall T. Conte
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Randall T. Conte
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Vice President and Chief Financial Officer
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