For Quarter Ended
|
March 31, 2019
|
Commission File Number
000-06253
|
Arkansas
|
71-0407808
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
incorporation or organization)
|
Identification No.)
|
|
|
501 Main Street, Pine Bluff, Arkansas
|
71601
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer
x
|
Accelerated filer
¨
|
Non-accelerated filer
¨
|
Smaller reporting company
¨
|
Emerging Growth company
¨
|
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common stock, par value $0.01 per share
|
|
SFNC
|
|
The NASDAQ Global Select Market
|
|
|
Page
|
|
||
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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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|
|
||
Item 1.
|
Legal Proceedings
|
*
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
*
|
Item 3.
|
Defaults Upon Senior Securities
|
*
|
Item 4.
|
Mine Safety Disclosures
|
*
|
Item 5.
|
Other Information
|
*
|
|
|
|
|
Part I:
|
Financial Information
|
Item 1.
|
Financial Statements (Unaudited)
|
|
March 31,
|
|
December 31,
|
||||
(In thousands, except share data)
|
2019
|
|
2018
|
||||
|
(Unaudited)
|
|
|
|
|||
ASSETS
|
|
|
|
|
|
||
Cash and non-interest bearing balances due from banks
|
$
|
151,112
|
|
|
$
|
171,792
|
|
Interest bearing balances due from banks and federal funds sold
|
340,049
|
|
|
661,666
|
|
||
Cash and cash equivalents
|
491,161
|
|
|
833,458
|
|
||
Interest bearing balances due from banks - time
|
4,684
|
|
|
4,934
|
|
||
Investment securities:
|
|
|
|
||||
Held-to-maturity
|
61,435
|
|
|
289,194
|
|
||
Available-for-sale
|
2,240,111
|
|
|
2,151,752
|
|
||
Total investments
|
2,301,546
|
|
|
2,440,946
|
|
||
Mortgage loans held for sale
|
18,480
|
|
|
26,799
|
|
||
Loans:
|
|
|
|
||||
Legacy loans
|
8,684,550
|
|
|
8,430,388
|
|
||
Allowance for loan losses
|
(59,243
|
)
|
|
(56,599
|
)
|
||
Loans acquired, net of discount and allowance
|
3,056,187
|
|
|
3,292,783
|
|
||
Net loans
|
11,681,494
|
|
|
11,666,572
|
|
||
Premises and equipment
|
333,740
|
|
|
295,060
|
|
||
Foreclosed assets and other real estate owned
|
18,952
|
|
|
25,565
|
|
||
Interest receivable
|
51,796
|
|
|
49,938
|
|
||
Bank owned life insurance
|
192,736
|
|
|
193,170
|
|
||
Goodwill
|
845,687
|
|
|
845,687
|
|
||
Other intangible assets
|
88,694
|
|
|
91,334
|
|
||
Other assets
|
62,669
|
|
|
69,874
|
|
||
Total assets
|
$
|
16,091,639
|
|
|
$
|
16,543,337
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Non-interest bearing transaction accounts
|
$
|
2,674,034
|
|
|
$
|
2,672,405
|
|
Interest bearing transaction accounts and savings deposits
|
6,666,823
|
|
|
6,830,191
|
|
||
Time deposits
|
2,648,674
|
|
|
2,896,156
|
|
||
Total deposits
|
11,989,531
|
|
|
12,398,752
|
|
||
Federal funds purchased and securities sold under agreements to repurchase
|
120,213
|
|
|
95,792
|
|
||
Other borrowings
|
1,169,989
|
|
|
1,345,450
|
|
||
Subordinated debentures
|
354,041
|
|
|
353,950
|
|
||
Accrued interest and other liabilities
|
155,544
|
|
|
102,959
|
|
||
Total liabilities
|
13,789,318
|
|
|
14,296,903
|
|
||
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Common stock, Class A, $0.01 par value; 175,000,000 shares authorized at March 31, 2019 and December 31, 2018; 92,568,361 and 92,347,643 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively
|
926
|
|
|
923
|
|
||
Surplus
|
1,599,566
|
|
|
1,597,944
|
|
||
Undivided profits
|
707,829
|
|
|
674,941
|
|
||
Accumulated other comprehensive loss
|
(6,000
|
)
|
|
(27,374
|
)
|
||
Total stockholders’ equity
|
2,302,321
|
|
|
2,246,434
|
|
||
Total liabilities and stockholders’ equity
|
$
|
16,091,639
|
|
|
$
|
16,543,337
|
|
|
|
|
Three Months Ended March 31,
|
||||||||
(In thousands, except per share data)
|
|
|
|
|
2019
|
|
2018
|
||||
|
|
|
(Unaudited)
|
||||||||
INTEREST INCOME
|
|
|
|
|
|
|
|
||||
Loans
|
|
|
|
|
$
|
159,440
|
|
|
$
|
143,350
|
|
Interest bearing balances due from banks and federal funds sold
|
|
|
|
|
2,154
|
|
|
1,009
|
|
||
Investment securities
|
|
|
|
|
17,312
|
|
|
12,622
|
|
||
Mortgage loans held for sale
|
|
|
|
|
210
|
|
|
158
|
|
||
TOTAL INTEREST INCOME
|
|
|
|
|
179,116
|
|
|
157,139
|
|
||
|
|
|
|
|
|
|
|
||||
INTEREST EXPENSE
|
|
|
|
|
|
|
|
||||
Deposits
|
|
|
|
|
30,750
|
|
|
15,597
|
|
||
Federal funds purchased and securities sold under agreements to repurchase
|
|
|
|
|
136
|
|
|
110
|
|
||
Other borrowings
|
|
|
|
|
6,793
|
|
|
5,139
|
|
||
Subordinated notes and debentures
|
|
|
|
|
4,411
|
|
|
1,327
|
|
||
TOTAL INTEREST EXPENSE
|
|
|
|
|
42,090
|
|
|
22,173
|
|
||
|
|
|
|
|
|
|
|
||||
NET INTEREST INCOME
|
|
|
|
|
137,026
|
|
|
134,966
|
|
||
Provision for loan losses
|
|
|
|
|
9,285
|
|
|
9,150
|
|
||
|
|
|
|
|
|
|
|
||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
|
|
|
|
127,741
|
|
|
125,816
|
|
||
|
|
|
|
|
|
|
|
||||
NON-INTEREST INCOME
|
|
|
|
|
|
|
|
||||
Trust income
|
|
|
|
|
5,708
|
|
|
5,249
|
|
||
Service charges on deposit accounts
|
|
|
|
|
10,068
|
|
|
10,345
|
|
||
Other service charges and fees
|
|
|
|
|
1,289
|
|
|
2,750
|
|
||
Mortgage lending income
|
|
|
|
|
2,823
|
|
|
3,472
|
|
||
SBA lending income
|
|
|
|
|
497
|
|
|
973
|
|
||
Investment banking income
|
|
|
|
|
618
|
|
|
834
|
|
||
Debit and credit card fees
|
|
|
|
|
6,098
|
|
|
8,796
|
|
||
Bank owned life insurance income
|
|
|
|
|
795
|
|
|
1,103
|
|
||
Gain on sale of securities, net
|
|
|
|
|
2,740
|
|
|
6
|
|
||
Other income
|
|
|
|
|
3,125
|
|
|
4,007
|
|
||
TOTAL NON-INTEREST INCOME
|
|
|
|
|
33,761
|
|
|
37,535
|
|
||
|
|
|
|
|
|
|
|
||||
NON-INTEREST EXPENSE
|
|
|
|
|
|
|
|
||||
Salaries and employee benefits
|
|
|
|
|
56,367
|
|
|
56,357
|
|
||
Occupancy expense, net
|
|
|
|
|
7,475
|
|
|
6,960
|
|
||
Furniture and equipment expense
|
|
|
|
|
3,358
|
|
|
4,403
|
|
||
Other real estate and foreclosure expense
|
|
|
|
|
637
|
|
|
1,020
|
|
||
Deposit insurance
|
|
|
|
|
2,040
|
|
|
2,128
|
|
||
Merger related costs
|
|
|
|
|
1,470
|
|
|
1,711
|
|
||
Other operating expenses
|
|
|
|
|
30,062
|
|
|
25,494
|
|
||
TOTAL NON-INTEREST EXPENSE
|
|
|
|
|
101,409
|
|
|
98,073
|
|
||
|
|
|
|
|
|
|
|
||||
INCOME BEFORE INCOME TAXES
|
|
|
|
|
60,093
|
|
|
65,278
|
|
||
Provision for income taxes
|
|
|
|
|
12,398
|
|
|
13,966
|
|
||
|
|
|
|
|
|
|
|
||||
NET INCOME
|
|
|
|
|
$
|
47,695
|
|
|
$
|
51,312
|
|
BASIC EARNINGS PER SHARE
|
|
|
|
|
$
|
0.52
|
|
|
$
|
0.56
|
|
DILUTED EARNINGS PER SHARE
|
|
|
|
|
$
|
0.51
|
|
|
$
|
0.55
|
|
|
|
|
Three Months Ended March 31,
|
||||||||
(In thousands)
|
|
|
|
|
2019
|
|
2018
|
||||
|
|
|
(Unaudited)
|
||||||||
NET INCOME
|
|
|
|
|
$
|
47,695
|
|
|
$
|
51,312
|
|
|
|
|
|
|
|
|
|
||||
OTHER COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
||||
Unrealized holding gains (losses) arising during the period on available-for-sale securities
|
|
|
|
|
29,130
|
|
|
(22,735
|
)
|
||
Unrealized holding gain on the transfer of held-to-maturity securities to available-for-sale per ASU 2017-12
|
|
|
|
|
2,547
|
|
|
—
|
|
||
Less: Reclassification adjustment for realized gains included in net income
|
|
|
|
|
2,740
|
|
|
6
|
|
||
Other comprehensive gain (loss), before tax effect
|
|
|
|
|
28,937
|
|
|
(22,741
|
)
|
||
Less: Tax effect of other comprehensive income (loss)
|
|
|
|
|
7,563
|
|
|
(5,943
|
)
|
||
|
|
|
|
|
|
|
|
||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
21,374
|
|
|
(16,798
|
)
|
||
|
|
|
|
|
|
|
|
||||
COMPREHENSIVE INCOME
|
|
|
|
|
$
|
69,069
|
|
|
$
|
34,514
|
|
(In thousands)
|
March 31, 2019
|
|
March 31, 2018
|
||||
|
(Unaudited)
|
||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
||
Net income
|
$
|
47,695
|
|
|
$
|
51,312
|
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
7,451
|
|
|
6,677
|
|
||
Provision for loan losses
|
9,285
|
|
|
9,150
|
|
||
Gain on sale of investments
|
(2,740
|
)
|
|
(6
|
)
|
||
Net accretion of investment securities and assets
|
(9,559
|
)
|
|
(14,368
|
)
|
||
Net amortization (accretion) on borrowings
|
91
|
|
|
(211
|
)
|
||
Stock-based compensation expense
|
3,084
|
|
|
2,585
|
|
||
(Gain) loss on sale of foreclosed assets held for sale
|
(32
|
)
|
|
41
|
|
||
Gain on sale of mortgage loans held for sale
|
(3,342
|
)
|
|
(2,610
|
)
|
||
Deferred income taxes
|
2,081
|
|
|
3,921
|
|
||
Income from bank owned life insurance
|
(876
|
)
|
|
(1,103
|
)
|
||
Originations of mortgage loans held for sale
|
(98,255
|
)
|
|
(113,012
|
)
|
||
Proceeds from sale of mortgage loans held for sale
|
109,916
|
|
|
121,952
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Interest receivable
|
(1,858
|
)
|
|
1,582
|
|
||
Lease right-of-use assets
|
2,294
|
|
|
—
|
|
||
Other assets
|
3,730
|
|
|
(5,648
|
)
|
||
Accrued interest and other liabilities
|
30,805
|
|
|
33,983
|
|
||
Income taxes payable
|
(10,977
|
)
|
|
(13,955
|
)
|
||
Net cash provided by operating activities
|
88,793
|
|
|
80,290
|
|
||
|
|
|
|
||||
INVESTING ACTIVITIES
|
|
|
|
||||
Net originations of loans
|
(18,116
|
)
|
|
(140,804
|
)
|
||
Decrease in due from banks - time
|
250
|
|
|
245
|
|
||
Purchases of premises and equipment, net
|
(13,027
|
)
|
|
(6,052
|
)
|
||
Proceeds from sale of foreclosed assets held for sale
|
7,214
|
|
|
4,359
|
|
||
Proceeds from sale of available-for-sale securities
|
209,968
|
|
|
7,726
|
|
||
Proceeds from maturities of available-for-sale securities
|
55,804
|
|
|
58,548
|
|
||
Purchases of available-for-sale securities
|
(110,767
|
)
|
|
(320,798
|
)
|
||
Proceeds from maturities of held-to-maturity securities
|
11,408
|
|
|
15,512
|
|
||
Proceeds from bank owned life insurance death benefits
|
1,310
|
|
|
616
|
|
||
Disposition of assets and liabilities held for sale
|
1,393
|
|
|
(75,586
|
)
|
||
Net cash provided by (used in) investing activities
|
145,437
|
|
|
(456,234
|
)
|
||
|
|
|
|
||||
FINANCING ACTIVITIES
|
|
|
|
||||
Net change in deposits
|
(409,221
|
)
|
|
564,040
|
|
||
Proceeds from issuance of subordinated notes
|
—
|
|
|
326,711
|
|
||
Dividends paid on common stock
|
(14,807
|
)
|
|
(14,081
|
)
|
||
Net change in other borrowed funds
|
(175,461
|
)
|
|
(239,038
|
)
|
||
Net change in federal funds purchased and securities sold under agreements to repurchase
|
24,421
|
|
|
(1,535
|
)
|
||
Net shares issued under stock compensation plans
|
(2,771
|
)
|
|
443
|
|
||
Shares issued under employee stock purchase plan
|
1,312
|
|
|
1,026
|
|
||
Net cash (used in) provided by financing activities
|
(576,527
|
)
|
|
637,566
|
|
||
|
|
|
|
||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
(342,297
|
)
|
|
261,622
|
|
||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
833,458
|
|
|
598,042
|
|
||
|
|
|
|
||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
491,161
|
|
|
$
|
859,664
|
|
(In thousands, except share data)
|
|
Common
Stock
|
|
Surplus
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Undivided
Profits
|
|
Total
|
||||||||||
Balance at, December 31, 2017
|
|
$
|
920
|
|
|
$
|
1,586,034
|
|
|
$
|
(17,264
|
)
|
|
$
|
514,874
|
|
|
$
|
2,084,564
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
(16,798
|
)
|
|
51,312
|
|
|
34,514
|
|
|||||
Stock issued for employee stock purchase plan – 39,782 shares
|
|
—
|
|
|
1,026
|
|
|
—
|
|
|
—
|
|
|
1,026
|
|
|||||
Stock-based compensation plans, net – 173,489
|
|
2
|
|
|
3,026
|
|
|
—
|
|
|
—
|
|
|
3,028
|
|
|||||
Dividends on common stock – $0.15 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,081
|
)
|
|
(14,081
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, March 31, 2018 (Unaudited)
|
|
922
|
|
|
1,590,086
|
|
|
(34,062
|
)
|
|
552,105
|
|
|
2,109,051
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
6,688
|
|
|
164,401
|
|
|
171,089
|
|
|||||
Stock-based compensation plans, net – 105,254
|
|
1
|
|
|
7,858
|
|
|
—
|
|
|
—
|
|
|
7,859
|
|
|||||
Dividends on common stock – $0.45 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41,565
|
)
|
|
(41,565
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, December 31, 2018
|
|
923
|
|
|
1,597,944
|
|
|
(27,374
|
)
|
|
674,941
|
|
|
2,246,434
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
21,374
|
|
|
47,695
|
|
|
69,069
|
|
|||||
Stock issued for employee stock purchase plan – 60,413 shares
|
|
1
|
|
|
1,311
|
|
|
—
|
|
|
—
|
|
|
1,312
|
|
|||||
Stock-based compensation plans, net – 160,305
|
|
2
|
|
|
311
|
|
|
—
|
|
|
—
|
|
|
313
|
|
|||||
Dividends on common stock – $0.16 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,807
|
)
|
|
(14,807
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, March 31, 2019 (Unaudited)
|
|
$
|
926
|
|
|
$
|
1,599,566
|
|
|
$
|
(6,000
|
)
|
|
$
|
707,829
|
|
|
$
|
2,302,321
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
(In thousands)
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross Unrealized
(Losses)
|
|
Estimated
Fair
Value
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross Unrealized
(Losses)
|
|
Estimated
Fair
Value
|
||||||||||||||||
Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government agencies
|
$
|
12,996
|
|
|
$
|
—
|
|
|
$
|
(9
|
)
|
|
$
|
12,987
|
|
|
$
|
16,990
|
|
|
$
|
—
|
|
|
$
|
(49
|
)
|
|
$
|
16,941
|
|
Mortgage-backed securities
|
12,847
|
|
|
10
|
|
|
(240
|
)
|
|
12,617
|
|
|
13,346
|
|
|
5
|
|
|
(412
|
)
|
|
12,939
|
|
||||||||
State and political subdivisions
|
33,597
|
|
|
751
|
|
|
(27
|
)
|
|
34,321
|
|
|
256,863
|
|
|
3,029
|
|
|
(954
|
)
|
|
258,938
|
|
||||||||
Other securities
|
1,995
|
|
|
36
|
|
|
—
|
|
|
2,031
|
|
|
1,995
|
|
|
17
|
|
|
—
|
|
|
2,012
|
|
||||||||
Total HTM
|
$
|
61,435
|
|
|
$
|
797
|
|
|
$
|
(276
|
)
|
|
$
|
61,956
|
|
|
$
|
289,194
|
|
|
$
|
3,051
|
|
|
$
|
(1,415
|
)
|
|
$
|
290,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
U.S. Government agencies
|
$
|
163,730
|
|
|
$
|
596
|
|
|
$
|
(2,749
|
)
|
|
$
|
161,577
|
|
|
$
|
157,523
|
|
|
$
|
518
|
|
|
$
|
(3,740
|
)
|
|
$
|
154,301
|
|
Mortgage-backed securities
|
1,362,950
|
|
|
2,569
|
|
|
(19,842
|
)
|
|
1,345,677
|
|
|
1,552,487
|
|
|
3,097
|
|
|
(32,684
|
)
|
|
1,522,900
|
|
||||||||
State and political subdivisions
|
571,716
|
|
|
10,307
|
|
|
(1,233
|
)
|
|
580,790
|
|
|
320,142
|
|
|
171
|
|
|
(5,470
|
)
|
|
314,843
|
|
||||||||
Other securities
|
151,707
|
|
|
437
|
|
|
(77
|
)
|
|
152,067
|
|
|
157,471
|
|
|
2,251
|
|
|
(14
|
)
|
|
159,708
|
|
||||||||
Total AFS
|
$
|
2,250,103
|
|
|
$
|
13,909
|
|
|
$
|
(23,901
|
)
|
|
$
|
2,240,111
|
|
|
$
|
2,187,623
|
|
|
$
|
6,037
|
|
|
$
|
(41,908
|
)
|
|
$
|
2,151,752
|
|
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
(In thousands)
|
Estimated
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair
Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Government agencies
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,987
|
|
|
$
|
(9
|
)
|
|
$
|
12,987
|
|
|
$
|
(9
|
)
|
Mortgage-backed securities
|
487
|
|
|
(1
|
)
|
|
9,994
|
|
|
(239
|
)
|
|
10,481
|
|
|
(240
|
)
|
||||||
State and political subdivisions
|
80
|
|
|
(1
|
)
|
|
4,881
|
|
|
(26
|
)
|
|
4,961
|
|
|
(27
|
)
|
||||||
Total HTM
|
$
|
567
|
|
|
$
|
(2
|
)
|
|
$
|
27,862
|
|
|
$
|
(274
|
)
|
|
$
|
28,429
|
|
|
$
|
(276
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agencies
|
$
|
5,583
|
|
|
$
|
(30
|
)
|
|
$
|
124,129
|
|
|
$
|
(2,719
|
)
|
|
$
|
129,712
|
|
|
$
|
(2,749
|
)
|
Mortgage-backed securities
|
40,444
|
|
|
(248
|
)
|
|
1,086,169
|
|
|
(19,594
|
)
|
|
1,126,613
|
|
|
(19,842
|
)
|
||||||
State and political subdivisions
|
1,016
|
|
|
(4
|
)
|
|
92,894
|
|
|
(1,229
|
)
|
|
93,910
|
|
|
(1,233
|
)
|
||||||
Other securities
|
5,029
|
|
|
(76
|
)
|
|
100
|
|
|
(1
|
)
|
|
5,129
|
|
|
(77
|
)
|
||||||
Total AFS
|
$
|
52,072
|
|
|
$
|
(358
|
)
|
|
$
|
1,303,292
|
|
|
$
|
(23,543
|
)
|
|
$
|
1,355,364
|
|
|
$
|
(23,901
|
)
|
(In thousands)
|
|
|
|
|
2019
|
|
2018
|
||||
Taxable:
|
|
|
|
|
|
|
|
|
|
||
Held-to-maturity
|
|
|
|
|
$
|
438
|
|
|
$
|
567
|
|
Available-for-sale
|
|
|
|
|
12,551
|
|
|
9,032
|
|
||
|
|
|
|
|
|
|
|
||||
Non-taxable:
|
|
|
|
|
|
|
|
||||
Held-to-maturity
|
|
|
|
|
1,162
|
|
|
1,936
|
|
||
Available-for-sale
|
|
|
|
|
3,161
|
|
|
1,087
|
|
||
Total
|
|
|
|
|
$
|
17,312
|
|
|
$
|
12,622
|
|
|
Held-to-Maturity
|
|
Available-for-Sale
|
||||||||||||
(In thousands)
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
One year or less
|
$
|
18,407
|
|
|
$
|
18,397
|
|
|
$
|
7,375
|
|
|
$
|
7,372
|
|
After one through five years
|
20,419
|
|
|
20,624
|
|
|
74,428
|
|
|
74,208
|
|
||||
After five through ten years
|
5,564
|
|
|
5,691
|
|
|
123,088
|
|
|
124,101
|
|
||||
After ten years
|
4,198
|
|
|
4,627
|
|
|
535,761
|
|
|
541,815
|
|
||||
Securities not due on a single maturity date
|
12,847
|
|
|
12,617
|
|
|
1,362,950
|
|
|
1,345,677
|
|
||||
Other securities (no maturity)
|
—
|
|
|
—
|
|
|
146,501
|
|
|
146,938
|
|
||||
Total
|
$
|
61,435
|
|
|
$
|
61,956
|
|
|
$
|
2,250,103
|
|
|
$
|
2,240,111
|
|
(In thousands)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Consumer:
|
|
|
|
|
|
||
Credit cards
|
$
|
181,549
|
|
|
$
|
204,173
|
|
Other consumer
|
213,659
|
|
|
201,297
|
|
||
Total consumer
|
395,208
|
|
|
405,470
|
|
||
Real Estate:
|
|
|
|
||||
Construction
|
1,376,162
|
|
|
1,300,723
|
|
||
Single family residential
|
1,431,407
|
|
|
1,440,443
|
|
||
Other commercial
|
3,355,109
|
|
|
3,225,287
|
|
||
Total real estate
|
6,162,678
|
|
|
5,966,453
|
|
||
Commercial:
|
|
|
|
||||
Commercial
|
1,801,422
|
|
|
1,774,909
|
|
||
Agricultural
|
147,216
|
|
|
164,514
|
|
||
Total commercial
|
1,948,638
|
|
|
1,939,423
|
|
||
Other
|
178,026
|
|
|
119,042
|
|
||
Loans
|
8,684,550
|
|
|
8,430,388
|
|
||
Loans acquired, net of discount and allowance
(1)
|
3,056,187
|
|
|
3,292,783
|
|
||
Total loans
|
$
|
11,740,737
|
|
|
$
|
11,723,171
|
|
(In thousands)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Consumer:
|
|
|
|
|
|
||
Credit cards
|
$
|
338
|
|
|
$
|
296
|
|
Other consumer
|
1,555
|
|
|
2,159
|
|
||
Total consumer
|
1,893
|
|
|
2,455
|
|
||
Real estate:
|
|
|
|
||||
Construction
|
2,570
|
|
|
1,269
|
|
||
Single family residential
|
15,324
|
|
|
11,939
|
|
||
Other commercial
|
8,612
|
|
|
7,205
|
|
||
Total real estate
|
26,506
|
|
|
20,413
|
|
||
Commercial:
|
|
|
|
||||
Commercial
|
31,409
|
|
|
10,049
|
|
||
Agricultural
|
1,117
|
|
|
1,284
|
|
||
Total commercial
|
32,526
|
|
|
11,333
|
|
||
Total
|
$
|
60,925
|
|
|
$
|
34,201
|
|
(In thousands)
|
Gross
30-89 Days
Past Due
|
|
90 Days
or More
Past Due
|
|
Total
Past Due
|
|
Current
|
|
Total
Loans
|
|
90 Days
Past Due &
Accruing
|
||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Credit cards
|
$
|
733
|
|
|
$
|
561
|
|
|
$
|
1,294
|
|
|
$
|
180,255
|
|
|
$
|
181,549
|
|
|
$
|
222
|
|
Other consumer
|
3,018
|
|
|
489
|
|
|
3,507
|
|
|
210,152
|
|
|
213,659
|
|
|
52
|
|
||||||
Total consumer
|
3,751
|
|
|
1,050
|
|
|
4,801
|
|
|
390,407
|
|
|
395,208
|
|
|
274
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
961
|
|
|
909
|
|
|
1,870
|
|
|
1,374,292
|
|
|
1,376,162
|
|
|
—
|
|
||||||
Single family residential
|
10,226
|
|
|
5,491
|
|
|
15,717
|
|
|
1,415,690
|
|
|
1,431,407
|
|
|
7
|
|
||||||
Other commercial
|
4,384
|
|
|
4,652
|
|
|
9,036
|
|
|
3,346,073
|
|
|
3,355,109
|
|
|
—
|
|
||||||
Total real estate
|
15,571
|
|
|
11,052
|
|
|
26,623
|
|
|
6,136,055
|
|
|
6,162,678
|
|
|
7
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
6,845
|
|
|
8,611
|
|
|
15,456
|
|
|
1,785,966
|
|
|
1,801,422
|
|
|
—
|
|
||||||
Agricultural
|
202
|
|
|
954
|
|
|
1,156
|
|
|
146,060
|
|
|
147,216
|
|
|
—
|
|
||||||
Total commercial
|
7,047
|
|
|
9,565
|
|
|
16,612
|
|
|
1,932,026
|
|
|
1,948,638
|
|
|
—
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
178,026
|
|
|
178,026
|
|
|
—
|
|
||||||
Total
|
$
|
26,369
|
|
|
$
|
21,667
|
|
|
$
|
48,036
|
|
|
$
|
8,636,514
|
|
|
$
|
8,684,550
|
|
|
$
|
281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Credit cards
|
$
|
1,033
|
|
|
$
|
506
|
|
|
$
|
1,539
|
|
|
$
|
202,634
|
|
|
$
|
204,173
|
|
|
$
|
209
|
|
Other consumer
|
4,264
|
|
|
896
|
|
|
5,160
|
|
|
196,137
|
|
|
201,297
|
|
|
4
|
|
||||||
Total consumer
|
5,297
|
|
|
1,402
|
|
|
6,699
|
|
|
398,771
|
|
|
405,470
|
|
|
213
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
533
|
|
|
308
|
|
|
841
|
|
|
1,299,882
|
|
|
1,300,723
|
|
|
—
|
|
||||||
Single family residential
|
7,769
|
|
|
4,127
|
|
|
11,896
|
|
|
1,428,547
|
|
|
1,440,443
|
|
|
—
|
|
||||||
Other commercial
|
3,379
|
|
|
2,773
|
|
|
6,152
|
|
|
3,219,135
|
|
|
3,225,287
|
|
|
—
|
|
||||||
Total real estate
|
11,681
|
|
|
7,208
|
|
|
18,889
|
|
|
5,947,564
|
|
|
5,966,453
|
|
|
—
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
4,472
|
|
|
5,105
|
|
|
9,577
|
|
|
1,765,332
|
|
|
1,774,909
|
|
|
11
|
|
||||||
Agricultural
|
467
|
|
|
1,055
|
|
|
1,522
|
|
|
162,992
|
|
|
164,514
|
|
|
—
|
|
||||||
Total commercial
|
4,939
|
|
|
6,160
|
|
|
11,099
|
|
|
1,928,324
|
|
|
1,939,423
|
|
|
11
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
119,042
|
|
|
119,042
|
|
|
—
|
|
||||||
Total
|
$
|
21,917
|
|
|
$
|
14,770
|
|
|
$
|
36,687
|
|
|
$
|
8,393,701
|
|
|
$
|
8,430,388
|
|
|
$
|
224
|
|
(In thousands)
|
Unpaid
Contractual
Principal
Balance
|
|
Recorded Investment
With No
Allowance
|
|
Recorded
Investment
With Allowance
|
|
Total
Recorded
Investment
|
|
Related
Allowance
|
|
Average
Investment in
Impaired
Loans
|
|
Interest
Income
Recognized
|
||||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2019 |
|||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Credit cards
|
$
|
338
|
|
|
$
|
338
|
|
|
$
|
—
|
|
|
$
|
338
|
|
|
$
|
—
|
|
|
$
|
317
|
|
|
$
|
30
|
|
Other consumer
|
1,699
|
|
|
1,555
|
|
|
—
|
|
|
1,555
|
|
|
—
|
|
|
1,857
|
|
|
13
|
|
|||||||
Total consumer
|
2,037
|
|
|
1,893
|
|
|
—
|
|
|
1,893
|
|
|
—
|
|
|
2,174
|
|
|
43
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
2,648
|
|
|
2,090
|
|
|
480
|
|
|
2,570
|
|
|
237
|
|
|
1,920
|
|
|
14
|
|
|||||||
Single family residential
|
16,379
|
|
|
11,891
|
|
|
3,432
|
|
|
15,323
|
|
|
38
|
|
|
13,703
|
|
|
98
|
|
|||||||
Other commercial
|
14,279
|
|
|
3,882
|
|
|
3,201
|
|
|
7,083
|
|
|
137
|
|
|
8,992
|
|
|
64
|
|
|||||||
Total real estate
|
33,306
|
|
|
17,863
|
|
|
7,113
|
|
|
24,976
|
|
|
412
|
|
|
24,615
|
|
|
176
|
|
|||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
38,420
|
|
|
6,268
|
|
|
23,327
|
|
|
29,595
|
|
|
108
|
|
|
20,739
|
|
|
148
|
|
|||||||
Agricultural
|
2,215
|
|
|
583
|
|
|
532
|
|
|
1,115
|
|
|
1
|
|
|
1,147
|
|
|
8
|
|
|||||||
Total commercial
|
40,635
|
|
|
6,851
|
|
|
23,859
|
|
|
30,710
|
|
|
109
|
|
|
21,886
|
|
|
156
|
|
|||||||
Total
|
$
|
75,978
|
|
|
$
|
26,607
|
|
|
$
|
30,972
|
|
|
$
|
57,579
|
|
|
$
|
521
|
|
|
$
|
48,675
|
|
|
$
|
375
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2018 |
|||||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Credit cards
|
$
|
296
|
|
|
$
|
296
|
|
|
$
|
—
|
|
|
$
|
296
|
|
|
$
|
—
|
|
|
$
|
234
|
|
|
$
|
15
|
|
Other consumer
|
2,311
|
|
|
2,159
|
|
|
—
|
|
|
2,159
|
|
|
—
|
|
|
4,658
|
|
|
34
|
|
|||||||
Total consumer
|
2,607
|
|
|
2,455
|
|
|
—
|
|
|
2,455
|
|
|
—
|
|
|
4,892
|
|
|
49
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
1,344
|
|
|
784
|
|
|
485
|
|
|
1,269
|
|
|
211
|
|
|
2,082
|
|
|
16
|
|
|||||||
Single family residential
|
12,906
|
|
|
11,468
|
|
|
616
|
|
|
12,084
|
|
|
36
|
|
|
13,523
|
|
|
100
|
|
|||||||
Other commercial
|
8,434
|
|
|
5,442
|
|
|
5,458
|
|
|
10,900
|
|
|
—
|
|
|
16,287
|
|
|
120
|
|
|||||||
Total real estate
|
22,684
|
|
|
17,694
|
|
|
6,559
|
|
|
24,253
|
|
|
247
|
|
|
31,892
|
|
|
236
|
|
|||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
10,361
|
|
|
7,254
|
|
|
4,628
|
|
|
11,882
|
|
|
437
|
|
|
7,226
|
|
|
53
|
|
|||||||
Agricultural
|
2,419
|
|
|
1,180
|
|
|
—
|
|
|
1,180
|
|
|
—
|
|
|
1,586
|
|
|
12
|
|
|||||||
Total commercial
|
12,780
|
|
|
8,434
|
|
|
4,628
|
|
|
13,062
|
|
|
437
|
|
|
8,812
|
|
|
65
|
|
|||||||
Total
|
$
|
38,071
|
|
|
$
|
28,583
|
|
|
$
|
11,187
|
|
|
$
|
39,770
|
|
|
$
|
684
|
|
|
$
|
45,596
|
|
|
$
|
350
|
|
|
Accruing TDR Loans
|
|
Nonaccrual TDR Loans
|
|
Total TDR Loans
|
|||||||||||||||
(Dollars in thousands)
|
Number
|
|
Balance
|
|
Number
|
|
Balance
|
|
Number
|
|
Balance
|
|||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Construction
|
—
|
|
|
$
|
—
|
|
|
3
|
|
|
$
|
480
|
|
|
3
|
|
|
$
|
480
|
|
Single-family residential
|
6
|
|
|
227
|
|
|
9
|
|
|
593
|
|
|
15
|
|
|
820
|
|
|||
Other commercial
|
2
|
|
|
3,250
|
|
|
2
|
|
|
1,003
|
|
|
4
|
|
|
4,253
|
|
|||
Total real estate
|
8
|
|
|
3,477
|
|
|
14
|
|
|
2,076
|
|
|
22
|
|
|
5,553
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
4
|
|
|
2,820
|
|
|
5
|
|
|
427
|
|
|
9
|
|
|
3,247
|
|
|||
Total commercial
|
4
|
|
|
2,820
|
|
|
5
|
|
|
427
|
|
|
9
|
|
|
3,247
|
|
|||
Total
|
12
|
|
|
$
|
6,297
|
|
|
19
|
|
|
$
|
2,503
|
|
|
31
|
|
|
$
|
8,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Construction
|
—
|
|
|
$
|
—
|
|
|
3
|
|
|
$
|
485
|
|
|
3
|
|
|
$
|
485
|
|
Single-family residential
|
6
|
|
|
230
|
|
|
10
|
|
|
616
|
|
|
16
|
|
|
846
|
|
|||
Other commercial
|
2
|
|
|
3,306
|
|
|
2
|
|
|
1,027
|
|
|
4
|
|
|
4,333
|
|
|||
Total real estate
|
8
|
|
|
3,536
|
|
|
15
|
|
|
2,128
|
|
|
23
|
|
|
5,664
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
4
|
|
|
2,833
|
|
|
6
|
|
|
718
|
|
|
10
|
|
|
3,551
|
|
|||
Total commercial
|
4
|
|
|
2,833
|
|
|
6
|
|
|
718
|
|
|
10
|
|
|
3,551
|
|
|||
Total
|
12
|
|
|
$
|
6,369
|
|
|
21
|
|
|
$
|
2,846
|
|
|
33
|
|
|
$
|
9,215
|
|
|
|
|
|
|
|
|
Modification Type
|
|
|
|||||||||||||
(Dollars in thousands)
|
Number of
Loans
|
|
Balance Prior
to TDR
|
|
Balance at March 31,
|
|
Change in
Maturity
Date
|
|
Change in
Rate
|
|
Financial Impact
on Date of
Restructure
|
|||||||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other consumer
|
1
|
|
|
$
|
91
|
|
|
$
|
91
|
|
|
$
|
91
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total consumer
|
1
|
|
|
91
|
|
|
91
|
|
|
91
|
|
|
—
|
|
|
—
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Single-family residential
|
1
|
|
|
61
|
|
|
62
|
|
|
62
|
|
|
—
|
|
|
—
|
|
|||||
Total real estate
|
1
|
|
|
61
|
|
|
62
|
|
|
62
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
2
|
|
|
$
|
152
|
|
|
$
|
153
|
|
|
$
|
153
|
|
|
$
|
—
|
|
|
$
|
—
|
|
•
|
Risk Rate 1 – Pass (Excellent)
– This category includes loans which are virtually free of credit risk. Borrowers in this category represent the highest credit quality and greatest financial strength.
|
•
|
Risk Rate 2 – Pass (Good)
- Loans under this category possess a nominal risk of default. This category includes borrowers with strong financial strength and superior financial ratios and trends. These loans are generally fully secured by cash or equivalents (other than those rated “excellent”).
|
•
|
Risk Rate 3 – Pass (Acceptable – Average)
- Loans in this category are considered to possess a normal level of risk. Borrowers in this category have satisfactory financial strength and adequate cash flow coverage to service debt requirements. If secured, the perfected collateral should be of acceptable quality and within established borrowing parameters.
|
•
|
Risk Rate 4 – Pass (Monitor)
- Loans in the Watch (Monitor) category exhibit an overall acceptable level of risk, but that risk may be increased by certain conditions, which represent “red flags”. These “red flags” require a higher level of supervision or monitoring than the normal “Pass” rated credit. The borrower may be experiencing these conditions for the first time, or it may be recovering from weakness, which at one time justified a higher rating. These conditions may include: weaknesses in financial trends; marginal cash flow; one-time negative operating results; non-compliance with policy or borrowing agreements; poor diversity in operations; lack of adequate monitoring information or lender supervision; questionable management ability/stability.
|
•
|
Risk Rate 5 – Special Mention
- A loan in this category has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special Mention loans are not adversely classified (although they are “criticized”) and do not expose an institution to sufficient risk to warrant adverse classification. Borrowers may be experiencing adverse operating trends, or an ill-proportioned balance sheet. Non-financial characteristics of a Special Mention rating may include management problems, pending litigation, a non-existent, or ineffective loan agreement or other material structural weakness, and/or other significant deviation from prudent lending practices.
|
•
|
Risk Rate 6 – Substandard
- A Substandard loan is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. The loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. This does not imply ultimate loss of the principal, but may involve burdensome administrative expenses and the accompanying cost to carry the loan.
|
•
|
Risk Rate 7 – Doubtful
- A loan classified Doubtful has all the weaknesses inherent in a substandard loan except that the weaknesses make collection or liquidation in full (on the basis of currently existing facts, conditions, and values) highly questionable and improbable. Doubtful borrowers are usually in default, lack adequate liquidity, or capital, and lack the resources necessary to remain an operating entity. The possibility of loss is extremely high, but because of specific pending events that may strengthen the asset, its classification as loss is deferred. Pending factors include: proposed merger or acquisition; liquidation procedures; capital injection; perfection of liens on additional collateral; and refinancing plans. Loans classified as Doubtful are placed on nonaccrual status.
|
•
|
Risk Rate 8 – Loss
- Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loans has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless loan, even though partial recovery may be affected in the future. Borrowers in the Loss category are often in bankruptcy, have formally suspended debt repayments, or have otherwise ceased normal business operations. Loans should be classified as Loss and charged-off in the period in which they become uncollectible.
|
(In thousands)
|
Risk Rate
1-4
|
|
Risk Rate
5
|
|
Risk Rate
6
|
|
Risk Rate
7
|
|
Risk Rate
8
|
|
Total
|
||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Credit cards
|
$
|
180,988
|
|
|
$
|
—
|
|
|
$
|
561
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
181,549
|
|
Other consumer
|
211,642
|
|
|
—
|
|
|
2,017
|
|
|
—
|
|
|
—
|
|
|
213,659
|
|
||||||
Total consumer
|
392,630
|
|
|
—
|
|
|
2,578
|
|
|
—
|
|
|
—
|
|
|
395,208
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
1,372,113
|
|
|
443
|
|
|
3,606
|
|
|
—
|
|
|
—
|
|
|
1,376,162
|
|
||||||
Single family residential
|
1,407,554
|
|
|
1,784
|
|
|
21,839
|
|
|
230
|
|
|
—
|
|
|
1,431,407
|
|
||||||
Other commercial
|
3,313,139
|
|
|
21,629
|
|
|
20,341
|
|
|
—
|
|
|
—
|
|
|
3,355,109
|
|
||||||
Total real estate
|
6,092,806
|
|
|
23,856
|
|
|
45,786
|
|
|
230
|
|
|
—
|
|
|
6,162,678
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
1,745,162
|
|
|
9,671
|
|
|
46,589
|
|
|
—
|
|
|
—
|
|
|
1,801,422
|
|
||||||
Agricultural
|
145,828
|
|
|
67
|
|
|
1,321
|
|
|
—
|
|
|
—
|
|
|
147,216
|
|
||||||
Total commercial
|
1,890,990
|
|
|
9,738
|
|
|
47,910
|
|
|
—
|
|
|
—
|
|
|
1,948,638
|
|
||||||
Other
|
178,026
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
178,026
|
|
||||||
Loans acquired
|
2,930,179
|
|
|
45,157
|
|
|
80,515
|
|
|
336
|
|
|
—
|
|
|
3,056,187
|
|
||||||
Total
|
$
|
11,484,631
|
|
|
$
|
78,751
|
|
|
$
|
176,789
|
|
|
$
|
566
|
|
|
$
|
—
|
|
|
$
|
11,740,737
|
|
(In thousands)
|
Risk Rate
1-4
|
|
Risk Rate
5
|
|
Risk Rate
6
|
|
Risk Rate
7
|
|
Risk Rate
8
|
|
Total
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Credit cards
|
$
|
203,667
|
|
|
$
|
—
|
|
|
$
|
506
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
204,173
|
|
Other consumer
|
198,840
|
|
|
—
|
|
|
2,457
|
|
|
—
|
|
|
—
|
|
|
201,297
|
|
||||||
Total consumer
|
402,507
|
|
|
—
|
|
|
2,963
|
|
|
—
|
|
|
—
|
|
|
405,470
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
1,296,988
|
|
|
1,910
|
|
|
1,825
|
|
|
—
|
|
|
—
|
|
|
1,300,723
|
|
||||||
Single family residential
|
1,420,052
|
|
|
1,628
|
|
|
18,528
|
|
|
235
|
|
|
—
|
|
|
1,440,443
|
|
||||||
Other commercial
|
3,193,289
|
|
|
17,169
|
|
|
14,829
|
|
|
—
|
|
|
—
|
|
|
3,225,287
|
|
||||||
Total real estate
|
5,910,329
|
|
|
20,707
|
|
|
35,182
|
|
|
235
|
|
|
—
|
|
|
5,966,453
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
1,742,002
|
|
|
8,357
|
|
|
24,550
|
|
|
—
|
|
|
—
|
|
|
1,774,909
|
|
||||||
Agricultural
|
162,824
|
|
|
75
|
|
|
1,615
|
|
|
—
|
|
|
—
|
|
|
164,514
|
|
||||||
Total commercial
|
1,904,826
|
|
|
8,432
|
|
|
26,165
|
|
|
—
|
|
|
—
|
|
|
1,939,423
|
|
||||||
Other
|
119,042
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
119,042
|
|
||||||
Loans acquired
|
3,187,083
|
|
|
51,255
|
|
|
54,097
|
|
|
348
|
|
|
—
|
|
|
3,292,783
|
|
||||||
Total
|
$
|
11,523,787
|
|
|
$
|
80,394
|
|
|
$
|
118,407
|
|
|
$
|
583
|
|
|
$
|
—
|
|
|
$
|
11,723,171
|
|
(In thousands)
|
Commercial
|
|
Real
Estate
|
|
Credit
Card
|
|
Other
Consumer
and Other
|
|
Total
|
||||||||||
Three Months Ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
(2)
|
$
|
20,514
|
|
|
$
|
29,743
|
|
|
$
|
3,923
|
|
|
$
|
2,419
|
|
|
$
|
56,599
|
|
Provision for loan losses
(1)
|
1,874
|
|
|
2,843
|
|
|
898
|
|
|
1,206
|
|
|
6,821
|
|
|||||
Charge-offs
|
(1,968
|
)
|
|
(374
|
)
|
|
(1,142
|
)
|
|
(1,533
|
)
|
|
(5,017
|
)
|
|||||
Recoveries
|
158
|
|
|
142
|
|
|
240
|
|
|
300
|
|
|
840
|
|
|||||
Net charge-offs
|
(1,810
|
)
|
|
(232
|
)
|
|
(902
|
)
|
|
(1,233
|
)
|
|
(4,177
|
)
|
|||||
Balance, March 31, 2019
(2)
|
$
|
20,578
|
|
|
$
|
32,354
|
|
|
$
|
3,919
|
|
|
$
|
2,392
|
|
|
$
|
59,243
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Period-end amount allocated to:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans individually evaluated for impairment
|
$
|
109
|
|
|
$
|
412
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
521
|
|
Loans collectively evaluated for impairment
|
20,469
|
|
|
31,942
|
|
|
3,919
|
|
|
2,392
|
|
|
58,722
|
|
|||||
Balance, March 31, 2019
(2)
|
$
|
20,578
|
|
|
$
|
32,354
|
|
|
$
|
3,919
|
|
|
$
|
2,392
|
|
|
$
|
59,243
|
|
(In thousands)
|
Commercial
|
|
Real
Estate
|
|
Credit
Card
|
|
Other
Consumer
and Other
|
|
Total
|
||||||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period
(3)
|
$
|
7,007
|
|
|
$
|
27,281
|
|
|
$
|
3,784
|
|
|
$
|
3,596
|
|
|
$
|
41,668
|
|
Provision for loan losses
(1)
|
4,286
|
|
|
3,286
|
|
|
751
|
|
|
759
|
|
|
9,082
|
|
|||||
Charge-offs
|
(1,761
|
)
|
|
(455
|
)
|
|
(999
|
)
|
|
(1,056
|
)
|
|
(4,271
|
)
|
|||||
Recoveries
|
69
|
|
|
302
|
|
|
263
|
|
|
94
|
|
|
728
|
|
|||||
Net charge-offs
|
(1,692
|
)
|
|
(153
|
)
|
|
(736
|
)
|
|
(962
|
)
|
|
(3,543
|
)
|
|||||
Balance, March 31, 2018
(2)
|
$
|
9,601
|
|
|
$
|
30,414
|
|
|
$
|
3,799
|
|
|
$
|
3,393
|
|
|
$
|
47,207
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Period-end amount allocated to:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans individually evaluated for impairment
|
$
|
18
|
|
|
$
|
426
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
444
|
|
Loans collectively evaluated for impairment
|
9,583
|
|
|
29,988
|
|
|
3,799
|
|
|
3,393
|
|
|
46,763
|
|
|||||
Balance, March 31, 2018
(2)
|
$
|
9,601
|
|
|
$
|
30,414
|
|
|
$
|
3,799
|
|
|
$
|
3,393
|
|
|
$
|
47,207
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Period-end amount allocated to:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans individually evaluated for impairment
|
$
|
437
|
|
|
$
|
247
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
684
|
|
Loans collectively evaluated for impairment
|
20,077
|
|
|
29,496
|
|
|
3,923
|
|
|
2,419
|
|
|
55,915
|
|
|||||
Balance, December 31, 2018
(2)
|
$
|
20,514
|
|
|
$
|
29,743
|
|
|
$
|
3,923
|
|
|
$
|
2,419
|
|
|
$
|
56,599
|
|
(In thousands)
|
Commercial
|
|
Real
Estate
|
|
Credit
Card
|
|
Other
Consumer
and Other
|
|
Total
|
||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans individually evaluated for impairment
|
$
|
30,710
|
|
|
$
|
24,976
|
|
|
$
|
338
|
|
|
$
|
1,555
|
|
|
$
|
57,579
|
|
Loans collectively evaluated for impairment
|
1,917,928
|
|
|
6,137,702
|
|
|
181,211
|
|
|
390,130
|
|
|
8,626,971
|
|
|||||
Balance, end of period
|
$
|
1,948,638
|
|
|
$
|
6,162,678
|
|
|
$
|
181,549
|
|
|
$
|
391,685
|
|
|
$
|
8,684,550
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans individually evaluated for impairment
|
$
|
13,062
|
|
|
$
|
24,253
|
|
|
$
|
296
|
|
|
$
|
2,159
|
|
|
$
|
39,770
|
|
Loans collectively evaluated for impairment
|
1,926,361
|
|
|
5,942,200
|
|
|
203,877
|
|
|
318,180
|
|
|
8,390,618
|
|
|||||
Balance, end of period
|
$
|
1,939,423
|
|
|
$
|
5,966,453
|
|
|
$
|
204,173
|
|
|
$
|
320,339
|
|
|
$
|
8,430,388
|
|
|
Loans Acquired
|
||||||
(In thousands)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Consumer:
|
|
|
|
|
|
||
Other consumer
|
$
|
11,979
|
|
|
$
|
15,658
|
|
Real estate:
|
|
|
|
||||
Construction
|
404,512
|
|
|
429,605
|
|
||
Single family residential
|
533,917
|
|
|
566,188
|
|
||
Other commercial
|
1,730,472
|
|
|
1,848,679
|
|
||
Total real estate
|
2,668,901
|
|
|
2,844,472
|
|
||
Commercial:
|
|
|
|
||||
Commercial
|
374,033
|
|
|
430,914
|
|
||
Agricultural
|
1,274
|
|
|
1,739
|
|
||
Total commercial
|
375,307
|
|
|
432,653
|
|
||
Total loans acquired
(1)
|
$
|
3,056,187
|
|
|
$
|
3,292,783
|
|
(In thousands)
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
|
|
||||
Consumer:
|
|
|
|
|
|
||
Other consumer
|
$
|
149
|
|
|
$
|
140
|
|
Real estate:
|
|
|
|
||||
Construction
|
130
|
|
|
114
|
|
||
Single family residential
|
6,342
|
|
|
6,603
|
|
||
Other commercial
|
8,973
|
|
|
1,167
|
|
||
Total real estate
|
15,445
|
|
|
7,884
|
|
||
Commercial:
|
|
|
|
||||
Commercial
|
3,117
|
|
|
13,578
|
|
||
Agricultural
|
20
|
|
|
38
|
|
||
Total commercial
|
3,137
|
|
|
13,616
|
|
||
Total
|
$
|
18,731
|
|
|
$
|
21,640
|
|
(In thousands)
|
Gross
30-89 Days
Past Due
|
|
90 Days
or More
Past Due
|
|
Total
Past Due
|
|
Current
|
|
Total
Loans
|
|
90 Days
Past Due &
Accruing
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other consumer
|
$
|
94
|
|
|
$
|
77
|
|
|
$
|
171
|
|
|
$
|
11,808
|
|
|
$
|
11,979
|
|
|
$
|
—
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
5
|
|
|
8,122
|
|
|
8,127
|
|
|
396,385
|
|
|
404,512
|
|
|
—
|
|
||||||
Single family residential
|
5,058
|
|
|
2,583
|
|
|
7,641
|
|
|
526,276
|
|
|
533,917
|
|
|
24
|
|
||||||
Other commercial
|
305
|
|
|
8,267
|
|
|
8,572
|
|
|
1,721,900
|
|
|
1,730,472
|
|
|
—
|
|
||||||
Total real estate
|
5,368
|
|
|
18,972
|
|
|
24,340
|
|
|
2,644,561
|
|
|
2,668,901
|
|
|
24
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
7,265
|
|
|
6,673
|
|
|
13,938
|
|
|
360,095
|
|
|
374,033
|
|
|
—
|
|
||||||
Agricultural
|
—
|
|
|
—
|
|
|
—
|
|
|
1,274
|
|
|
1,274
|
|
|
—
|
|
||||||
Total commercial
|
7,265
|
|
|
6,673
|
|
|
13,938
|
|
|
361,369
|
|
|
375,307
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
$
|
12,727
|
|
|
$
|
25,722
|
|
|
$
|
38,449
|
|
|
$
|
3,017,738
|
|
|
$
|
3,056,187
|
|
|
$
|
24
|
|
(In thousands)
|
Gross
30-89 Days
Past Due
|
|
90 Days
or More
Past Due
|
|
Total
Past Due
|
|
Current
|
|
Total
Loans
|
|
90 Days
Past Due &
Accruing
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other consumer
|
$
|
337
|
|
|
$
|
49
|
|
|
$
|
386
|
|
|
$
|
15,272
|
|
|
$
|
15,658
|
|
|
$
|
2
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
8,283
|
|
|
27
|
|
|
8,310
|
|
|
421,295
|
|
|
429,605
|
|
|
—
|
|
||||||
Single family residential
|
4,706
|
|
|
3,049
|
|
|
7,755
|
|
|
558,433
|
|
|
566,188
|
|
|
—
|
|
||||||
Other commercial
|
168
|
|
|
577
|
|
|
745
|
|
|
1,847,934
|
|
|
1,848,679
|
|
|
—
|
|
||||||
Total real estate
|
13,157
|
|
|
3,653
|
|
|
16,810
|
|
|
2,827,662
|
|
|
2,844,472
|
|
|
—
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
1,302
|
|
|
9,542
|
|
|
10,844
|
|
|
420,070
|
|
|
430,914
|
|
|
—
|
|
||||||
Agricultural
|
31
|
|
|
5
|
|
|
36
|
|
|
1,703
|
|
|
1,739
|
|
|
—
|
|
||||||
Total commercial
|
1,333
|
|
|
9,547
|
|
|
10,880
|
|
|
421,773
|
|
|
432,653
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
$
|
14,827
|
|
|
$
|
13,249
|
|
|
$
|
28,076
|
|
|
$
|
3,264,707
|
|
|
$
|
3,292,783
|
|
|
$
|
2
|
|
(In thousands)
|
Risk Rate
1-4
|
|
Risk Rate
5
|
|
Risk Rate
6
|
|
Risk Rate
7
|
|
Risk Rate
8
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other consumer
|
$
|
11,715
|
|
|
$
|
—
|
|
|
$
|
264
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,979
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
369,267
|
|
|
27,475
|
|
|
7,770
|
|
|
—
|
|
|
—
|
|
|
404,512
|
|
||||||
Single family residential
|
520,159
|
|
|
2,049
|
|
|
11,373
|
|
|
336
|
|
|
—
|
|
|
533,917
|
|
||||||
Other commercial
|
1,675,051
|
|
|
11,894
|
|
|
43,527
|
|
|
—
|
|
|
—
|
|
|
1,730,472
|
|
||||||
Total real estate
|
2,564,477
|
|
|
41,418
|
|
|
62,670
|
|
|
336
|
|
|
—
|
|
|
2,668,901
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
352,779
|
|
|
3,739
|
|
|
17,515
|
|
|
—
|
|
|
—
|
|
|
374,033
|
|
||||||
Agricultural
|
1,208
|
|
|
—
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|
1,274
|
|
||||||
Total commercial
|
353,987
|
|
|
3,739
|
|
|
17,581
|
|
|
—
|
|
|
—
|
|
|
375,307
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
$
|
2,930,179
|
|
|
$
|
45,157
|
|
|
$
|
80,515
|
|
|
$
|
336
|
|
|
$
|
—
|
|
|
$
|
3,056,187
|
|
(In thousands)
|
Risk Rate
1-4
|
|
Risk Rate
5
|
|
Risk Rate
6
|
|
Risk Rate
7
|
|
Risk Rate
8
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other consumer
|
$
|
15,380
|
|
|
$
|
—
|
|
|
$
|
278
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,658
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
393,122
|
|
|
27,621
|
|
|
8,862
|
|
|
—
|
|
|
—
|
|
|
429,605
|
|
||||||
Single family residential
|
553,460
|
|
|
2,081
|
|
|
10,299
|
|
|
348
|
|
|
—
|
|
|
566,188
|
|
||||||
Other commercial
|
1,822,179
|
|
|
9,137
|
|
|
17,363
|
|
|
—
|
|
|
—
|
|
|
1,848,679
|
|
||||||
Total real estate
|
2,768,761
|
|
|
38,839
|
|
|
36,524
|
|
|
348
|
|
|
—
|
|
|
2,844,472
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
401,300
|
|
|
12,416
|
|
|
17,198
|
|
|
—
|
|
|
—
|
|
|
430,914
|
|
||||||
Agricultural
|
1,642
|
|
|
—
|
|
|
97
|
|
|
—
|
|
|
—
|
|
|
1,739
|
|
||||||
Total commercial
|
402,942
|
|
|
12,416
|
|
|
17,295
|
|
|
—
|
|
|
—
|
|
|
432,653
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
$
|
3,187,083
|
|
|
$
|
51,255
|
|
|
$
|
54,097
|
|
|
$
|
348
|
|
|
$
|
—
|
|
|
$
|
3,292,783
|
|
|
Three Months Ended
March 31, 2019 |
|
Three Months Ended
March 31, 2018 |
||||||||||||
(In thousands)
|
Accretable
Yield
|
|
Carrying
Amount of
Loans
|
|
Accretable
Yield
|
|
Carrying
Amount of
Loans
|
||||||||
Beginning balance
|
$
|
1,460
|
|
|
$
|
4,050
|
|
|
$
|
620
|
|
|
$
|
17,116
|
|
Additions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Accretable yield adjustments
|
17
|
|
|
—
|
|
|
1,134
|
|
|
—
|
|
||||
Accretion
|
(9
|
)
|
|
9
|
|
|
(385
|
)
|
|
385
|
|
||||
Payments and other reductions, net
|
—
|
|
|
(408
|
)
|
|
—
|
|
|
104
|
|
||||
Balance, ending
|
$
|
1,468
|
|
|
$
|
3,651
|
|
|
$
|
1,369
|
|
|
$
|
17,605
|
|
(In thousands)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Goodwill
|
$
|
845,687
|
|
|
$
|
845,687
|
|
Core deposit premiums:
|
|
|
|
||||
Gross carrying amount
|
105,984
|
|
|
105,984
|
|
||
Accumulated amortization
|
(28,552
|
)
|
|
(26,177
|
)
|
||
Core deposit premiums, net
|
77,432
|
|
|
79,807
|
|
||
Books of business intangible:
|
|
|
|
||||
Gross carrying amount
|
15,234
|
|
|
15,234
|
|
||
Accumulated amortization
|
(3,972
|
)
|
|
(3,707
|
)
|
||
Books of business intangible, net
|
11,262
|
|
|
11,527
|
|
||
Other intangible assets, net
|
88,694
|
|
|
91,334
|
|
||
Total goodwill and other intangible assets
|
$
|
934,381
|
|
|
$
|
937,021
|
|
(In thousands)
|
Year
|
|
Amortization
Expense
|
||
|
Remainder of 2019
|
|
$
|
7,924
|
|
|
2020
|
|
10,552
|
|
|
|
2021
|
|
10,490
|
|
|
|
2022
|
|
10,438
|
|
|
|
2023
|
|
10,156
|
|
|
|
Thereafter
|
|
39,134
|
|
|
|
Total
|
|
$
|
88,694
|
|
|
|
|
Three Months Ended
March 31, |
||||||||
(In thousands)
|
|
|
|
|
2019
|
|
2018
|
||||
Income taxes currently payable
|
|
|
|
|
$
|
10,317
|
|
|
$
|
10,045
|
|
Deferred income taxes
|
|
|
|
|
2,081
|
|
|
3,921
|
|
||
Provision for income taxes
|
|
|
|
|
$
|
12,398
|
|
|
$
|
13,966
|
|
(In thousands)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Deferred tax assets:
|
|
|
|
|
|
||
Loans acquired
|
$
|
11,052
|
|
|
$
|
12,536
|
|
Allowance for loan losses
|
14,885
|
|
|
13,947
|
|
||
Valuation of foreclosed assets
|
1,474
|
|
|
1,474
|
|
||
Tax NOLs from acquisition
|
6,969
|
|
|
7,242
|
|
||
Deferred compensation payable
|
2,793
|
|
|
2,707
|
|
||
Accrued equity and other compensation
|
6,304
|
|
|
8,182
|
|
||
Acquired securities
|
397
|
|
|
397
|
|
||
Unrealized loss on available-for-sale securities
|
2,718
|
|
|
9,196
|
|
||
Other
|
7,130
|
|
|
7,042
|
|
||
Gross deferred tax assets
|
53,722
|
|
|
62,723
|
|
(In thousands)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Goodwill and other intangible amortization
|
$
|
(30,273
|
)
|
|
$
|
(30,471
|
)
|
Accumulated depreciation
|
(13,361
|
)
|
|
(13,361
|
)
|
||
Other
|
(5,115
|
)
|
|
(5,360
|
)
|
||
Gross deferred tax liabilities
|
(48,749
|
)
|
|
(49,192
|
)
|
||
|
|
|
|
||||
Net deferred tax asset, included in other assets
|
$
|
4,973
|
|
|
$
|
13,531
|
|
|
|
|
Three Months Ended
March 31, |
||||||||
(In thousands)
|
|
|
|
|
2019
|
|
2018
|
||||
Computed at the statutory rate
(21%)
|
|
|
|
|
$
|
12,620
|
|
|
$
|
13,708
|
|
Increase (decrease) in taxes resulting from:
|
|
|
|
|
|
|
|
||||
State income taxes, net of federal tax benefit
|
|
|
|
|
1,345
|
|
|
1,822
|
|
||
Discrete items related to ASU 2016-09
|
|
|
|
|
(26
|
)
|
|
(273
|
)
|
||
Tax exempt interest income
|
|
|
|
|
(961
|
)
|
|
(677
|
)
|
||
Tax exempt earnings on BOLI
|
|
|
|
|
(179
|
)
|
|
(186
|
)
|
||
Federal tax credits
|
|
|
|
|
(729
|
)
|
|
—
|
|
||
Other differences, net
|
|
|
|
|
328
|
|
|
(428
|
)
|
||
Actual tax provision
|
|
|
|
|
$
|
12,398
|
|
|
$
|
13,966
|
|
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||||||
(In thousands)
|
Overnight and
Continuous
|
|
Up to 30 Days
|
|
30-90 Days
|
|
Greater than
90 Days
|
|
Total
|
||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase agreements:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government agencies
|
$
|
116,963
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
116,963
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase agreements:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government agencies
|
$
|
95,542
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
95,542
|
|
(In thousands)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Other Borrowings
|
|
|
|
|
|
||
FHLB advances, net of discount, due 2019 to 2033, 1.38% to 7.37% secured by real estate loans
|
$
|
1,169,989
|
|
|
$
|
1,345,450
|
|
Revolving credit agreement, due 10/4/2019, floating rate of 1.50% above the one month LIBOR rate, unsecured
|
—
|
|
|
—
|
|
||
Total other borrowings
|
1,169,989
|
|
|
1,345,450
|
|
||
|
|
|
|
||||
Subordinated Notes and Debentures
|
|
|
|
||||
Subordinated notes payable, due 4/1/2028, fixed-to-floating rate (fixed rate of 5.00% through 3/31/2023, floating rate of 2.15% above the three month LIBOR rate, reset quarterly)
|
330,000
|
|
|
330,000
|
|
||
Trust preferred securities, net of discount, due 9/15/2037, floating rate of 1.37% above the three month LIBOR rate, reset quarterly
|
10,310
|
|
|
10,310
|
|
||
Trust preferred securities, net of discount, due 6/6/2037, floating rate of 1.57% above the three month LIBOR rate, reset quarterly, callable without penalty
|
10,310
|
|
|
10,310
|
|
||
Trust preferred securities, due 12/15/2035, floating rate of 1.45% above the three month LIBOR rate, reset quarterly, callable without penalty
|
6,702
|
|
|
6,702
|
|
||
Unamortized debt issuance costs
|
(3,281
|
)
|
|
(3,372
|
)
|
||
Total subordinated notes and debentures
|
354,041
|
|
|
353,950
|
|
||
Total other borrowings and subordinated debt
|
$
|
1,524,030
|
|
|
$
|
1,699,400
|
|
(In thousands)
|
Year
|
|
Annual
Maturities
|
||
|
2019
|
|
$
|
1,775
|
|
|
2020
|
|
2,099
|
|
|
|
2021
|
|
1,801
|
|
|
|
2022
|
|
948
|
|
|
|
2023
|
|
925
|
|
|
|
Thereafter
|
|
361,482
|
|
|
|
Total
|
|
$
|
369,030
|
|
|
Stock Options
Outstanding
|
|
Non-vested
Stock Awards
Outstanding
|
|
Non-vested
Stock Units
Outstanding
|
|||||||||||||||
|
Number
of Shares
(000)
|
|
Weighted
Average
Exercise
Price
|
|
Number
of Shares
(000)
|
|
Weighted
Average
Grant-Date
Fair Value
|
|
Number
of Shares
(000)
|
|
Weighted
Average
Grant-Date
Fair Value
|
|||||||||
Balance, January 1, 2019
|
695
|
|
|
$
|
22.42
|
|
|
72
|
|
|
$
|
21.45
|
|
|
817
|
|
|
$
|
27.65
|
|
Granted
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
399
|
|
|
26.57
|
|
|||
Stock options exercised
|
(1
|
)
|
|
10.65
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Stock awards/units vested (earned)
|
—
|
|
|
—
|
|
|
(21
|
)
|
|
18.65
|
|
|
(266
|
)
|
|
26.55
|
|
|||
Forfeited/expired
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
18.92
|
|
|
(57
|
)
|
|
28.45
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance, March 31, 2019
|
694
|
|
|
$
|
22.43
|
|
|
50
|
|
|
$
|
22.68
|
|
|
893
|
|
|
$
|
27.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Exercisable, March 31, 2019
|
694
|
|
|
$
|
22.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options Outstanding
|
|
Options Exercisable
|
||||||||||||
Range of
Exercise Prices
|
|
Number
of Shares
(000)
|
|
Weighted
Average
Remaining
Contractual
Life (Years)
|
|
Weighted
Average
Exercise
Price
|
|
Number
of Shares
(000)
|
|
Weighted
Average
Exercise
Price
|
||||||||
$
|
9.46
|
|
|
—
|
|
$
|
9.46
|
|
|
1
|
|
2.80
|
|
$9.46
|
|
1
|
|
$9.46
|
10.65
|
|
|
—
|
|
10.65
|
|
|
3
|
|
3.83
|
|
10.65
|
|
3
|
|
10.65
|
||
10.76
|
|
|
—
|
|
10.76
|
|
|
2
|
|
0.80
|
|
10.76
|
|
2
|
|
10.76
|
||
20.29
|
|
|
—
|
|
20.29
|
|
|
71
|
|
5.75
|
|
20.29
|
|
71
|
|
20.29
|
||
20.36
|
|
|
—
|
|
20.36
|
|
|
3
|
|
5.63
|
|
20.36
|
|
3
|
|
20.36
|
||
22.20
|
|
|
—
|
|
22.20
|
|
|
74
|
|
5.98
|
|
22.20
|
|
74
|
|
22.20
|
||
22.75
|
|
|
—
|
|
22.75
|
|
|
436
|
|
6.36
|
|
22.75
|
|
436
|
|
22.75
|
||
23.51
|
|
|
—
|
|
23.51
|
|
|
97
|
|
6.81
|
|
23.51
|
|
97
|
|
23.51
|
||
24.07
|
|
|
—
|
|
24.07
|
|
|
7
|
|
6.46
|
|
24.07
|
|
7
|
|
24.07
|
||
$
|
9.46
|
|
|
—
|
|
$
|
24.07
|
|
|
694
|
|
6.28
|
|
$22.43
|
|
694
|
|
$22.43
|
(In thousands)
|
|
Performance Stock Units
|
|
Non-vested, January 1, 2019
|
|
177
|
|
Granted
|
|
83
|
|
Vested (earned)
|
|
(54
|
)
|
Forfeited
|
|
(17
|
)
|
Non-vested, March 31, 2019
|
|
189
|
|
|
|
|
Three Months Ended
March 31, |
||||||||
(In thousands, except per share data)
|
|
|
|
|
2019
|
|
2018
|
||||
Net income
|
|
|
|
|
$
|
47,695
|
|
|
$
|
51,312
|
|
|
|
|
|
|
|
|
|
||||
Average common shares outstanding
|
|
|
|
|
92,520
|
|
|
92,182
|
|
||
Average potential dilutive common shares
|
|
|
|
|
351
|
|
|
457
|
|
||
Average diluted common shares
|
|
|
|
|
92,871
|
|
|
92,639
|
|
||
|
|
|
|
|
|
|
|
||||
Basic earnings per share
|
|
|
|
|
$
|
0.52
|
|
|
$
|
0.56
|
|
Diluted earnings per share
|
|
|
|
|
$
|
0.51
|
|
|
$
|
0.55
|
|
|
Three Months Ended
March 31, |
||||||
(In thousands)
|
2019
|
|
2018
|
||||
Interest paid
|
$
|
38,047
|
|
|
$
|
22,863
|
|
Income taxes (refunded) paid
|
(54
|
)
|
|
(7,375
|
)
|
||
Transfers of loans to foreclosed assets held for sale
|
569
|
|
|
1,316
|
|
||
Transfers of premises to foreclosed assets and other real estate owned
|
—
|
|
|
106
|
|
||
Right-of use lease assets obtained in exchange for lessee operating lease liabilities
|
32,757
|
|
|
—
|
|
|
|
|
Three Months Ended
March 31, |
||||||||
(In thousands)
|
|
|
|
|
2019
|
|
2018
|
||||
Professional services
|
|
|
|
|
$
|
4,323
|
|
|
$
|
4,330
|
|
Postage
|
|
|
|
|
1,726
|
|
|
1,399
|
|
||
Telephone
|
|
|
|
|
1,619
|
|
|
1,486
|
|
||
Credit card expense
|
|
|
|
|
3,860
|
|
|
3,228
|
|
||
Marketing
|
|
|
|
|
3,057
|
|
|
1,660
|
|
||
Software and technology
|
|
|
|
|
4,496
|
|
|
2,648
|
|
||
Operating supplies
|
|
|
|
|
618
|
|
|
749
|
|
||
Amortization of intangibles
|
|
|
|
|
2,641
|
|
|
2,837
|
|
||
Branch right sizing expense
|
|
|
|
|
45
|
|
|
61
|
|
||
Other expense
|
|
|
|
|
7,677
|
|
|
7,096
|
|
||
Total other operating expenses
|
|
|
|
|
$
|
30,062
|
|
|
$
|
25,494
|
|
•
|
Level 1 Inputs
– Quoted prices in active markets for identical assets or liabilities.
|
•
|
Level 2 Inputs
– Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices for similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
•
|
Level 3 Inputs
– Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
|
|
|
|
Fair Value Measurements Using
|
||||||||||||
(In thousands)
|
Fair Value
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant Other
Observable Inputs
(Level 2)
|
|
Significant
Unobservable Inputs
(Level 3)
|
||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government agencies
|
$
|
161,577
|
|
|
$
|
—
|
|
|
$
|
161,577
|
|
|
$
|
—
|
|
Mortgage-backed securities
|
1,345,677
|
|
|
—
|
|
|
1,345,677
|
|
|
—
|
|
||||
State and political subdivisions
|
580,790
|
|
|
—
|
|
|
580,790
|
|
|
—
|
|
||||
Other securities
|
152,067
|
|
|
—
|
|
|
152,067
|
|
|
—
|
|
||||
Derivative asset
|
6,306
|
|
|
—
|
|
|
6,306
|
|
|
—
|
|
||||
Derivative liability
|
(5,861
|
)
|
|
—
|
|
|
(5,861
|
)
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
U.S. Government agencies
|
$
|
154,301
|
|
|
$
|
—
|
|
|
$
|
154,301
|
|
|
$
|
—
|
|
Mortgage-backed securities
|
1,522,900
|
|
|
—
|
|
|
1,522,900
|
|
|
—
|
|
||||
States and political subdivisions
|
314,843
|
|
|
—
|
|
|
314,843
|
|
|
—
|
|
||||
Other securities
|
159,708
|
|
|
—
|
|
|
159,708
|
|
|
—
|
|
||||
Derivative asset
|
6,242
|
|
|
—
|
|
|
6,242
|
|
|
—
|
|
||||
Derivative liability
|
(5,283
|
)
|
|
—
|
|
|
(5,283
|
)
|
|
—
|
|
|
|
|
Fair Value Measurements Using
|
||||||||||||
(In thousands)
|
Fair Value
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant Other
Observable Inputs
(Level 2)
|
|
Significant
Unobservable Inputs
(Level 3)
|
||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans
(1) (2)
(collateral dependent)
|
$
|
2,101
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,101
|
|
Foreclosed assets and other real estate owned
(1)
|
302
|
|
|
—
|
|
|
—
|
|
|
302
|
|
||||
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Impaired loans
(1) (2)
(collateral dependent)
|
$
|
17,789
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,789
|
|
Foreclosed assets and other real estate owned
(1)
|
23,714
|
|
|
—
|
|
|
—
|
|
|
23,714
|
|
|
Carrying
|
|
Fair Value Measurements
|
|
|
||||||||||||||
(In thousands)
|
Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
491,161
|
|
|
$
|
491,161
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
491,161
|
|
Interest bearing balances due from banks - time
|
4,684
|
|
|
—
|
|
|
4,684
|
|
|
—
|
|
|
4,684
|
|
|||||
Held-to-maturity securities
|
61,435
|
|
|
—
|
|
|
61,956
|
|
|
—
|
|
|
61,956
|
|
|||||
Mortgage loans held for sale
|
18,480
|
|
|
—
|
|
|
—
|
|
|
18,480
|
|
|
18,480
|
|
|||||
Interest receivable
|
51,796
|
|
|
—
|
|
|
51,796
|
|
|
—
|
|
|
51,796
|
|
|||||
Legacy loans, net
|
8,625,307
|
|
|
—
|
|
|
—
|
|
|
8,539,036
|
|
|
8,539,036
|
|
|||||
Loans acquired, net
|
3,056,187
|
|
|
—
|
|
|
—
|
|
|
3,025,619
|
|
|
3,025,619
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest bearing transaction accounts
|
2,674,034
|
|
|
—
|
|
|
2,674,034
|
|
|
—
|
|
|
2,674,034
|
|
|||||
Interest bearing transaction accounts and savings deposits
|
6,666,823
|
|
|
—
|
|
|
6,666,823
|
|
|
—
|
|
|
6,666,823
|
|
|||||
Time deposits
|
2,648,674
|
|
|
—
|
|
|
—
|
|
|
2,632,615
|
|
|
2,632,615
|
|
|||||
Federal funds purchased and securities sold under agreements to repurchase
|
120,213
|
|
|
—
|
|
|
120,213
|
|
|
—
|
|
|
120,213
|
|
|||||
Other borrowings
|
1,169,989
|
|
|
—
|
|
|
1,168,914
|
|
|
—
|
|
|
1,168,914
|
|
|||||
Subordinated notes and debentures
|
354,041
|
|
|
—
|
|
|
359,090
|
|
|
—
|
|
|
359,090
|
|
|||||
Interest payable
|
13,941
|
|
|
—
|
|
|
13,941
|
|
|
—
|
|
|
13,941
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
833,458
|
|
|
$
|
833,458
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
833,458
|
|
Interest bearing balances due from banks - time
|
4,934
|
|
|
—
|
|
|
4,934
|
|
|
—
|
|
|
4,934
|
|
|||||
Held-to-maturity securities
|
289,194
|
|
|
—
|
|
|
290,830
|
|
|
—
|
|
|
290,830
|
|
|||||
Mortgage loans held for sale
|
26,799
|
|
|
—
|
|
|
—
|
|
|
26,799
|
|
|
26,799
|
|
|||||
Interest receivable
|
49,938
|
|
|
—
|
|
|
49,938
|
|
|
—
|
|
|
49,938
|
|
|||||
Legacy loans, net
|
8,373,789
|
|
|
—
|
|
|
—
|
|
|
8,280,690
|
|
|
8,280,690
|
|
|||||
Loans acquired, net
|
3,292,783
|
|
|
—
|
|
|
—
|
|
|
3,256,174
|
|
|
3,256,174
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest bearing transaction accounts
|
2,672,405
|
|
|
—
|
|
|
2,672,405
|
|
|
—
|
|
|
2,672,405
|
|
|||||
Interest bearing transaction accounts and savings deposits
|
6,830,191
|
|
|
—
|
|
|
6,830,191
|
|
|
—
|
|
|
6,830,191
|
|
|||||
Time deposits
|
2,896,156
|
|
|
—
|
|
|
—
|
|
|
2,872,342
|
|
|
2,872,342
|
|
|||||
Federal funds purchased and securities sold under agreements to repurchase
|
95,792
|
|
|
—
|
|
|
95,792
|
|
|
—
|
|
|
95,792
|
|
|||||
Other borrowings
|
1,345,450
|
|
|
—
|
|
|
1,342,868
|
|
|
—
|
|
|
1,342,868
|
|
|||||
Subordinated debentures
|
353,950
|
|
|
—
|
|
|
355,812
|
|
|
—
|
|
|
355,812
|
|
|||||
Interest payable
|
9,897
|
|
|
—
|
|
|
9,897
|
|
|
—
|
|
|
9,897
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
|
|
Three Months Ended
March 31, |
||||||||
(In thousands)
|
|
|
|
|
2019
|
|
2018
|
||||
Interest income
|
|
|
|
|
$
|
179,116
|
|
|
$
|
157,139
|
|
FTE adjustment
|
|
|
|
|
1,601
|
|
|
1,130
|
|
||
Interest income – FTE
|
|
|
|
|
180,717
|
|
|
158,269
|
|
||
Interest expense
|
|
|
|
|
42,090
|
|
|
22,173
|
|
||
Net interest income – FTE
|
|
|
|
|
$
|
138,627
|
|
|
$
|
136,096
|
|
|
|
|
|
|
|
|
|
||||
Yield on earning assets – FTE
|
|
|
|
|
5.02
|
%
|
|
4.84
|
%
|
||
Cost of interest bearing liabilities
|
|
|
|
|
1.52
|
%
|
|
0.89
|
%
|
||
Net interest spread – FTE
|
|
|
|
|
3.50
|
%
|
|
3.95
|
%
|
||
Net interest margin – FTE
|
|
|
|
|
3.85
|
%
|
|
4.17
|
%
|
|
|
|
Three Months Ended
March 31, |
||
(In thousands)
|
|
|
2019 vs. 2018
|
||
Increase due to change in earning assets
|
|
|
$
|
15,209
|
|
Increase due to change in earning asset yields
|
|
|
7,239
|
|
|
Decrease due to change in interest bearing liabilities
|
|
|
(4,535
|
)
|
|
Decrease due to change in interest rates paid on interest bearing liabilities
|
|
|
(15,382
|
)
|
|
Increase in net interest income
|
|
|
$
|
2,531
|
|
|
Three Months Ended
March 31, |
||||||||||
|
2019 vs. 2018
|
||||||||||
(In thousands, on a fully taxable equivalent basis)
|
Volume
|
|
Yield/
Rate
|
|
Total
|
||||||
Increase (decrease) in:
|
|
|
|
|
|
|
|
|
|||
Interest income:
|
|
|
|
|
|
|
|
|
|||
Interest bearing balances due from banks and federal funds sold
|
$
|
190
|
|
|
$
|
955
|
|
|
$
|
1,145
|
|
Investment securities - taxable
|
1,684
|
|
|
1,706
|
|
|
3,390
|
|
|||
Investment securities - non-taxable
|
1,248
|
|
|
503
|
|
|
1,751
|
|
|||
Mortgage loans held for sale
|
34
|
|
|
18
|
|
|
52
|
|
|||
Loans
|
12,053
|
|
|
4,057
|
|
|
16,110
|
|
|||
Total
|
15,209
|
|
|
7,239
|
|
|
22,448
|
|
|||
|
|
|
|
|
|
||||||
Interest expense:
|
|
|
|
|
|
||||||
Interest bearing transaction and savings accounts
|
284
|
|
|
7,391
|
|
|
7,675
|
|
|||
Time deposits
|
2,378
|
|
|
5,100
|
|
|
7,478
|
|
|||
Federal funds purchased and securities sold under agreements to repurchase
|
(11
|
)
|
|
37
|
|
|
26
|
|
|||
Other borrowings
|
(242
|
)
|
|
1,896
|
|
|
1,654
|
|
|||
Subordinated notes and debentures
|
2,126
|
|
|
958
|
|
|
3,084
|
|
|||
Total
|
4,535
|
|
|
15,382
|
|
|
19,917
|
|
|||
Increase (decrease) in net interest income
|
$
|
10,674
|
|
|
$
|
(8,143
|
)
|
|
$
|
2,531
|
|
|
|
|
|
|
Three Months Ended
March 31, |
|
2019
Change from
|
|||||||||||||||
(In thousands)
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2018
|
|||||||||||
Trust income
|
|
|
|
|
|
|
|
|
$
|
5,708
|
|
|
$
|
5,249
|
|
|
$
|
459
|
|
|
8.7
|
%
|
Service charges on deposit accounts
|
|
|
|
|
|
|
|
|
10,068
|
|
|
10,345
|
|
|
(277
|
)
|
|
(2.7
|
)
|
|||
Other service charges and fees
|
|
|
|
|
|
|
|
|
1,289
|
|
|
2,750
|
|
|
(1,461
|
)
|
|
(53.1
|
)
|
|||
Mortgage lending income
|
|
|
|
|
|
|
|
|
2,823
|
|
|
3,472
|
|
|
(649
|
)
|
|
(18.7
|
)
|
|||
SBA lending income
|
|
|
|
|
|
|
|
|
497
|
|
|
973
|
|
|
(476
|
)
|
|
(48.9
|
)
|
|||
Investment banking income
|
|
|
|
|
|
|
|
|
618
|
|
|
834
|
|
|
(216
|
)
|
|
(25.9
|
)
|
|||
Debit and credit card fees
|
|
|
|
|
|
|
|
|
6,098
|
|
|
8,796
|
|
|
(2,698
|
)
|
|
(30.7
|
)
|
|||
Bank owned life insurance income
|
|
|
|
|
|
|
|
|
795
|
|
|
1,103
|
|
|
(308
|
)
|
|
(27.9
|
)
|
|||
Gain on sale of securities, net
|
|
|
|
|
|
|
|
|
2,740
|
|
|
6
|
|
|
2,734
|
|
|
*
|
||||
Gain on sale of premises held for sale, net
|
|
|
|
|
|
|
|
|
—
|
|
|
4
|
|
|
(4
|
)
|
|
(100.0
|
)
|
|||
Other income
|
|
|
|
|
|
|
|
|
3,125
|
|
|
4,003
|
|
|
(878
|
)
|
|
(21.9
|
)
|
|||
Total non-interest income
|
|
|
|
|
|
|
|
|
$
|
33,761
|
|
|
$
|
37,535
|
|
|
$
|
(3,774
|
)
|
|
(10.1
|
)%
|
|
|
|
|
|
Three Months Ended
March 31, |
|
2019
Change from
|
|||||||||||||||
(In thousands)
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2018
|
|||||||||||
Salaries and employee benefits
|
|
|
|
|
|
|
|
|
$
|
56,012
|
|
|
$
|
56,357
|
|
|
$
|
(345
|
)
|
|
(0.6
|
)%
|
Early retirement program
|
|
|
|
|
|
|
|
|
355
|
|
|
—
|
|
|
355
|
|
|
*
|
||||
Occupancy expense, net
|
|
|
|
|
|
|
|
|
7,475
|
|
|
6,960
|
|
|
515
|
|
|
7.4
|
|
|||
Furniture and equipment expense
|
|
|
|
|
|
|
|
|
3,358
|
|
|
4,403
|
|
|
(1,045
|
)
|
|
(23.7
|
)
|
|||
Other real estate and foreclosure expense
|
|
|
|
|
|
|
|
|
637
|
|
|
1,020
|
|
|
(383
|
)
|
|
(37.6
|
)
|
|||
Deposit insurance
|
|
|
|
|
|
|
|
|
2,040
|
|
|
2,128
|
|
|
(88
|
)
|
|
(4.1
|
)
|
|||
Merger related costs
|
|
|
|
|
|
|
|
|
1,470
|
|
|
1,711
|
|
|
(241
|
)
|
|
(14.1
|
)
|
|||
Other operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Professional services
|
|
|
|
|
|
|
|
|
4,323
|
|
|
4,330
|
|
|
(7
|
)
|
|
(0.2
|
)
|
|||
Postage
|
|
|
|
|
|
|
|
|
1,726
|
|
|
1,399
|
|
|
327
|
|
|
23.3
|
|
|||
Telephone
|
|
|
|
|
|
|
|
|
1,619
|
|
|
1,486
|
|
|
133
|
|
|
8.9
|
|
|||
Credit card expenses
|
|
|
|
|
|
|
|
|
3,860
|
|
|
3,228
|
|
|
632
|
|
|
19.6
|
|
|||
Marketing
|
|
|
|
|
|
|
|
|
3,057
|
|
|
1,660
|
|
|
1,397
|
|
|
84.2
|
|
|||
Software and technology
|
|
|
|
|
|
|
|
|
4,496
|
|
|
2,648
|
|
|
1,848
|
|
|
69.8
|
|
|||
Operating supplies
|
|
|
|
|
|
|
|
|
618
|
|
|
749
|
|
|
(131
|
)
|
|
(17.5
|
)
|
|||
Amortization of intangibles
|
|
|
|
|
|
|
|
|
2,641
|
|
|
2,837
|
|
|
(196
|
)
|
|
(6.9
|
)
|
|||
Branch right sizing expense
|
|
|
|
|
|
|
|
|
45
|
|
|
61
|
|
|
(16
|
)
|
|
(26.2
|
)
|
|||
Other expense
|
|
|
|
|
|
|
|
|
7,677
|
|
|
7,096
|
|
|
581
|
|
|
8.2
|
|
|||
Total non-interest expense
|
|
|
|
|
|
|
|
|
$
|
101,409
|
|
|
$
|
98,073
|
|
|
$
|
3,336
|
|
|
3.4
|
%
|
(In thousands)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Consumer:
|
|
|
|
|
|
||
Credit cards
|
$
|
181,549
|
|
|
$
|
204,173
|
|
Other consumer
|
213,659
|
|
|
201,297
|
|
||
Total consumer
|
395,208
|
|
|
405,470
|
|
||
Real estate:
|
|
|
|
||||
Construction
|
1,376,162
|
|
|
1,300,723
|
|
||
Single family residential
|
1,431,407
|
|
|
1,440,443
|
|
||
Other commercial
|
3,355,109
|
|
|
3,225,287
|
|
||
Total real estate
|
6,162,678
|
|
|
5,966,453
|
|
||
Commercial:
|
|
|
|
||||
Commercial
|
1,801,422
|
|
|
1,774,909
|
|
||
Agricultural
|
147,216
|
|
|
164,514
|
|
||
Total commercial
|
1,948,638
|
|
|
1,939,423
|
|
||
Other
|
178,026
|
|
|
119,042
|
|
||
Total loans, excluding loans acquired, before allowance for loan losses
|
$
|
8,684,550
|
|
|
$
|
8,430,388
|
|
(In thousands)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Consumer:
|
|
|
|
|
|
||
Other consumer
|
$
|
11,979
|
|
|
$
|
15,658
|
|
Real estate:
|
|
|
|
||||
Construction
|
404,512
|
|
|
429,605
|
|
||
Single family residential
|
533,917
|
|
|
566,188
|
|
||
Other commercial
|
1,730,472
|
|
|
1,848,679
|
|
||
Total real estate
|
2,668,901
|
|
|
2,844,472
|
|
||
Commercial:
|
|
|
|
||||
Commercial
|
374,033
|
|
|
430,914
|
|
||
Agricultural
|
1,274
|
|
|
1,739
|
|
||
Total commercial
|
375,307
|
|
|
432,653
|
|
||
Total loans acquired
(1)
|
$
|
3,056,187
|
|
|
$
|
3,292,783
|
|
(Dollars in thousands)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Nonaccrual loans
(1)
|
$
|
60,925
|
|
|
$
|
34,201
|
|
Loans past due 90 days or more (principal or interest payments)
|
281
|
|
|
224
|
|
||
Total non-performing loans
|
61,206
|
|
|
34,425
|
|
||
Other non-performing assets:
|
|
|
|
||||
Foreclosed assets held for sale
|
18,952
|
|
|
25,565
|
|
||
Other non-performing assets
|
505
|
|
|
553
|
|
||
Total other non-performing assets
|
19,457
|
|
|
26,118
|
|
||
Total non-performing assets
|
$
|
80,663
|
|
|
$
|
60,543
|
|
|
|
|
|
||||
Performing TDRs
|
$
|
6,297
|
|
|
$
|
6,369
|
|
Allowance for loan losses to non-performing loans
|
97
|
%
|
|
164
|
%
|
||
Non-performing loans to total loans
|
0.70
|
%
|
|
0.41
|
%
|
||
Non-performing assets (including performing TDRs) to total assets
(2)
|
0.54
|
%
|
|
0.40
|
%
|
||
Non-performing assets to total assets
(2)
|
0.50
|
%
|
|
0.37
|
%
|
(1)
|
Includes nonaccrual TDRs of approximately
$2.5 million
at
March 31, 2019
and
$2.8 million
at
December 31, 2018
.
|
(2)
|
Excludes all loans acquired, except for their inclusion in total assets.
|
(In thousands)
|
2019
|
|
2018
|
||||
Balance, beginning of year
|
$
|
56,599
|
|
|
$
|
41,668
|
|
Loans charged off:
|
|
|
|
||||
Credit card
|
1,142
|
|
|
999
|
|
||
Other consumer
|
1,533
|
|
|
1,056
|
|
||
Real estate
|
374
|
|
|
455
|
|
||
Commercial
|
1,968
|
|
|
1,761
|
|
||
Total loans charged off
|
5,017
|
|
|
4,271
|
|
||
Recoveries of loans previously charged off:
|
|
|
|
||||
Credit card
|
240
|
|
|
263
|
|
||
Other consumer
|
300
|
|
|
94
|
|
||
Real estate
|
142
|
|
|
302
|
|
||
Commercial
|
158
|
|
|
69
|
|
||
Total recoveries
|
840
|
|
|
728
|
|
||
Net loans charged off
|
4,177
|
|
|
3,543
|
|
||
Provision for loan losses
(1)
|
6,821
|
|
|
9,082
|
|
||
Balance, March 31
(3)
|
$
|
59,243
|
|
|
$
|
47,207
|
|
|
|
|
|
||||
Loans charged off:
|
|
|
|
||||
Credit card
|
|
|
3,052
|
|
|||
Other consumer
|
|
|
5,581
|
|
|||
Real estate
|
|
|
5,450
|
|
|||
Commercial
|
|
|
4,862
|
|
|||
Total loans charged off
|
|
|
18,945
|
|
|||
Recoveries of loans previously charged off:
|
|
|
|
||||
Credit card
|
|
|
742
|
|
|||
Other consumer
|
|
|
463
|
|
|||
Real estate
|
|
|
689
|
|
|||
Commercial
|
|
|
676
|
|
|||
Total recoveries
|
|
|
2,570
|
|
|||
Net loans charged off
|
|
|
16,375
|
|
|||
Provision for loan losses
(2)
|
|
|
25,767
|
|
|||
Balance, end of year
(3)
|
|
|
$
|
56,599
|
|
(1)
|
Provision for loan losses of
$2,464,000
attributable to loans acquired, was excluded from this table for
2019
(total year-to-date provision for loan losses was
$9,285,000
) and
$68,000
was excluded from this table for
2018
(total year-to-date
2018
provision for loan losses was
$9,150,000
). Charge offs of
$1,247,000
on loans acquired were excluded from this table for
2019
and
$79,000
for
2018
.
|
(2)
|
Provision for loan losses of
$3,299,000
attributable to loans acquired, was excluded from this table for
2018
(total
2018
provision for loan losses was
$38,148,000
).
|
(3)
|
Allowance for loan losses at
March 31, 2019
includes
$1,312,000
allowance for loans acquired (not shown in the table above). Allowance for loan losses at
December 31, 2018
and
March 31, 2018
includes
$95,000
and
$407,000
, respectively, of allowance for loans acquired (not shown in the table above). The total allowance for loan losses at
March 31, 2019
was
$60,555,000
and total allowance for loan losses at
December 31, 2018
and
March 31, 2018
was
$56,694,000
and
$47,614,000
, respectively.
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||
(Dollars in thousands)
|
Allowance
Amount
|
|
% of
loans
(1)
|
|
Allowance
Amount
|
|
% of
loans
(1)
|
||||||
Credit cards
|
$
|
3,919
|
|
|
2.1
|
%
|
|
$
|
3,923
|
|
|
2.4
|
%
|
Other consumer
|
2,344
|
|
|
2.5
|
%
|
|
2,380
|
|
|
2.4
|
%
|
||
Real estate
|
32,354
|
|
|
71.0
|
%
|
|
29,743
|
|
|
70.8
|
%
|
||
Commercial
|
20,578
|
|
|
22.4
|
%
|
|
20,514
|
|
|
23.0
|
%
|
||
Other
|
48
|
|
|
2.0
|
%
|
|
39
|
|
|
1.4
|
%
|
||
Total
(2)
|
$
|
59,243
|
|
|
100.0
|
%
|
|
$
|
56,599
|
|
|
100.0
|
%
|
(1)
|
Percentage of loans in each category to total loans, excluding loans acquired.
|
(2)
|
Allowance for loan losses at
March 31, 2019
and
December 31, 2018
includes
$1,312,000
and
$95,000
, respectively, allowance for loans acquired (not shown in the table above). The total allowance for loan losses at
March 31, 2019
and
December 31, 2018
was
$60,555,000
and
$56,694,000
, respectively.
|
(Dollars in thousands)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Tier 1 capital:
|
|
|
|
|
|
||
Stockholders’ equity
|
$
|
2,302,321
|
|
|
$
|
2,246,434
|
|
Goodwill and other intangible assets
|
(910,122
|
)
|
|
(912,428
|
)
|
||
Unrealized loss on available-for-sale securities, net of income taxes
|
6,000
|
|
|
27,374
|
|
||
Total Tier 1 capital
|
1,398,199
|
|
|
1,361,380
|
|
||
Tier 2 capital:
|
|
|
|
||||
Trust preferred securities and subordinated debt
|
354,041
|
|
|
353,950
|
|
||
Qualifying allowance for loan losses
|
67,771
|
|
|
63,608
|
|
||
Total Tier 2 capital
|
421,812
|
|
|
417,558
|
|
||
Total risk-based capital
|
$
|
1,820,011
|
|
|
$
|
1,778,938
|
|
|
|
|
|
||||
Risk weighted assets
|
$
|
13,364,636
|
|
|
$
|
13,326,832
|
|
|
|
|
|
||||
Assets for leverage ratio
|
$
|
15,423,961
|
|
|
$
|
15,512,042
|
|
|
|
|
|
||||
Ratios at end of period:
|
|
|
|
||||
Common equity Tier 1 ratio (CET1)
|
10.46
|
%
|
|
10.22
|
%
|
||
Tier 1 leverage ratio
|
9.07
|
%
|
|
8.78
|
%
|
||
Tier 1 risk-based capital ratio
|
10.46
|
%
|
|
10.22
|
%
|
||
Total risk-based capital ratio
|
13.62
|
%
|
|
13.35
|
%
|
||
Minimum guidelines:
|
|
|
|
||||
Common equity Tier 1 ratio
|
4.50
|
%
|
|
4.50
|
%
|
||
Tier 1 leverage ratio
|
4.00
|
%
|
|
4.00
|
%
|
||
Tier 1 risk-based capital ratio
|
6.00
|
%
|
|
6.00
|
%
|
||
Total risk-based capital ratio
|
8.00
|
%
|
|
8.00
|
%
|
|
|
|
Three Months Ended
March 31, |
||||||||
(Dollars in thousands)
|
|
|
|
|
2019
|
|
2018
|
||||
Net income
|
|
|
|
|
$
|
47,695
|
|
|
$
|
51,312
|
|
Non-core items:
|
|
|
|
|
|
|
|
||||
Merger related costs
|
|
|
|
|
1,470
|
|
|
1,711
|
|
||
Early retirement program
|
|
|
|
|
355
|
|
|
—
|
|
||
Branch right sizing
|
|
|
|
|
45
|
|
|
57
|
|
||
Tax effect
(1)
|
|
|
|
|
(489
|
)
|
|
(462
|
)
|
||
Net non-core items
|
|
|
|
|
1,381
|
|
|
1,306
|
|
||
Core earnings (non-GAAP)
|
|
|
|
|
$
|
49,076
|
|
|
$
|
52,618
|
|
|
|
|
|
|
|
|
|
||||
Diluted earnings per share
|
|
|
|
|
$
|
0.51
|
|
|
$
|
0.55
|
|
Non-core items:
|
|
|
|
|
|
|
|
||||
Merger related costs
|
|
|
|
|
0.02
|
|
|
0.02
|
|
||
Early retirement program
|
|
|
|
|
0.01
|
|
—
|
|
|||
Branch right sizing
|
|
|
|
|
—
|
|
|
—
|
|
||
Tax effect
(1)
|
|
|
|
|
(0.01
|
)
|
|
—
|
|
||
Net non-core items
|
|
|
|
|
0.02
|
|
|
0.02
|
|
||
Diluted core earnings per share (non-GAAP)
|
|
|
|
|
$
|
0.53
|
|
|
$
|
0.57
|
|
(1)
|
Effective tax rate of 26.135%.
|
(In thousands, except per share data)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Total common stockholders’ equity
|
$
|
2,302,321
|
|
|
$
|
2,246,434
|
|
Intangible assets:
|
|
|
|
||||
Goodwill
|
(845,687
|
)
|
|
(845,687
|
)
|
||
Other intangible assets
|
(88,694
|
)
|
|
(91,334
|
)
|
||
Total intangibles
|
(934,381
|
)
|
|
(937,021
|
)
|
||
Tangible common stockholders’ equity
|
$
|
1,367,940
|
|
|
$
|
1,309,413
|
|
Shares of common stock outstanding
|
92,568,361
|
|
|
92,347,643
|
|
||
|
|
|
|
||||
Book value per common share
|
$
|
24.87
|
|
|
$
|
24.33
|
|
|
|
|
|
||||
Tangible book value per common share (non-GAAP)
|
$
|
14.78
|
|
|
$
|
14.18
|
|
(In thousands, except per share data)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Total common stockholders’ equity
|
$
|
2,302,321
|
|
|
$
|
2,246,434
|
|
Intangible assets:
|
|
|
|
||||
Goodwill
|
(845,687
|
)
|
|
(845,687
|
)
|
||
Other intangible assets
|
(88,694
|
)
|
|
(91,334
|
)
|
||
Total intangibles
|
(934,381
|
)
|
|
(937,021
|
)
|
||
Tangible common stockholders’ equity
|
$
|
1,367,940
|
|
|
$
|
1,309,413
|
|
|
|
|
|
||||
Total assets
|
$
|
16,091,639
|
|
|
$
|
16,543,337
|
|
Intangible assets:
|
|
|
|
||||
Goodwill
|
(845,687
|
)
|
|
(845,687
|
)
|
||
Other intangible assets
|
(88,694
|
)
|
|
(91,334
|
)
|
||
Total intangibles
|
(934,381
|
)
|
|
(937,021
|
)
|
||
Tangible assets
|
$
|
15,157,258
|
|
|
$
|
15,606,316
|
|
|
|
|
|
||||
Ratio of common equity to assets
|
14.31
|
%
|
|
13.58
|
%
|
||
Ratio of tangible common equity to tangible assets (non-GAAP)
|
9.02
|
%
|
|
8.39
|
%
|
|
|
|
Three Months Ended
March 31, |
||||||||
(Dollars in thousands)
|
|
|
|
|
2019
|
|
2018
|
||||
Net interest income
|
|
|
|
|
$
|
137,026
|
|
|
$
|
134,966
|
|
FTE adjustment
|
|
|
|
|
1,601
|
|
|
1,130
|
|
||
Fully tax equivalent net interest income
|
|
|
|
|
138,627
|
|
|
136,096
|
|
||
Total accretable yield
|
|
|
|
|
(6,660
|
)
|
|
(11,294
|
)
|
||
Core net interest income
|
|
|
|
|
$
|
131,967
|
|
|
$
|
124,802
|
|
|
|
|
|
|
|
|
|
||||
Average earning assets – quarter-to-date
|
|
|
|
|
$
|
14,593,905
|
|
|
$
|
13,251,549
|
|
|
|
|
|
|
|
|
|
||||
Net interest margin
|
|
|
|
|
3.85
|
%
|
|
4.17
|
%
|
||
Core net interest margin (non-GAAP)
|
|
|
|
|
3.67
|
%
|
|
3.82
|
%
|
Item 3.
|
Quantitative and Qualitative Disclosure About Market Risk
|
Item 4.
|
Controls and Procedures
|
Part II:
|
Other Information
|
Item 1A.
|
Risk Factors
|
Item 6.
|
Exhibits
|
Exhibit No.
|
Description
|
Agreement and Plan of Merger, dated as of March 24, 2014, by and between Simmons First National Corporation and Delta Trust & Banking Corporation (incorporated by reference to Annex A to the Joint Proxy Statement/Prospectus filed by Simmons First National Corporation on July 23, 2014 (File No. 000-06253)).
|
|
Agreement and Plan of Merger, dated as of May 6, 2014, by and between Simmons First National Corporation and Community First Bancshares, Inc., as amended on September 11, 2014 (incorporated by reference to Annex A to the Joint Proxy Statement/Prospectus filed by Simmons First National Corporation on October 8, 2014 (File No. 000-06253)).
|
|
Agreement and Plan of Merger, dated as of May 27, 2014, by and between Simmons First National Corporation and Liberty Bancshares, Inc., as amended on September 11, 2014 (incorporated by reference to Annex B to the Joint Proxy Statement/Prospectus filed by Simmons First National Corporation on October 8, 2014 (File No. 000-06253)).
|
|
Agreement and Plan of Merger, dated as of April 28, 2015, by and between Simmons First National Corporation and Ozark Trust & Investment Corporation (incorporated by reference to Exhibit 10.1 to Simmons First National Corporation’s Current Report on Form 8-K for April 29, 2015 (File No. 000-06253)).
|
|
Stock Purchase Agreement by and among Citizens National Bank, Citizens National Bancorp, Inc. and Simmons First National Corporation, dated as of May 18, 2016 (incorporated by reference to Exhibit 2.1 to Simmons First National Corporation’s Current Report on Form 8-K for May 18, 2016 (File No. 000-06253)).
|
|
Agreement and Plan of Merger, dated as of November 17, 2016, by and between Simmons First National Corporation and Hardeman County Investment Company, Inc. (incorporated by reference to Exhibit 2.1 to Simmons First National Corporation’s Current Report on Form 8-K for November 17, 2016 (File No. 000-06253)).
|
|
Agreement and Plan of Merger, dated as of December 14, 2016, by and between Simmons First National Corporation and Southwest Bancorp, Inc., as amended on July 19, 2017 (incorporated by reference to Exhibit 2.11 to Simmons First National Corporation’s Quarterly Report on Form 10-Q for the Quarter ended June 30, 2017 (File No. 000-06253)).
|
|
Agreement and Plan of Merger, dated as of January 23, 2017, by and between Simmons First National Corporation and First Texas, BHC, Inc., as amended on July 19, 2017 (incorporated by reference to Exhibit 2.12 to Simmons First National Corporation’s Quarterly Report on Form 10-Q for the Quarter ended June 30, 2017 (File No. 000-06253)).
|
Date:
|
May 8, 2019
|
/s/ George A. Makris, Jr.
|
|
|
George A. Makris, Jr.
|
|
|
Chairman and Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
Date:
|
May 8, 2019
|
/s/ Robert A. Fehlman
|
|
|
Robert A. Fehlman
|
|
|
Senior Executive Vice President,
|
|
|
Chief Financial Officer and Treasurer
|
|
|
|
|
|
|
|
|
|
Date:
|
May 8, 2019
|
/s/ David W. Garner
|
|
|
David W. Garner
|
|
|
Executive Vice President, Controller
|
|
|
and Chief Accounting Officer
|
BKD, LLP
|
|
/s/ BKD, LLP
|
/s/ George A. Makris, Jr.
|
|
George A. Makris, Jr.
|
|
Chairman and Chief Executive Officer
|
|
/s/ Robert A. Fehlman
|
|
Robert A. Fehlman
|
|
Senior Executive Vice President,
|
|
Chief Financial Officer and Treasurer
|
|
/s/ David W. Garner
|
|
David W. Garner
|
|
Executive Vice President, Controller
|
|
and Chief Accounting Officer
|
|
/s/ George A. Makris, Jr.
|
|
George A. Makris, Jr.
|
|
Chairman and Chief Executive Officer
|
|
/s/ Robert A. Fehlman
|
|
Robert A. Fehlman
|
|
Senior Executive Vice President,
|
|
Chief Financial Officer and Treasurer
|
|
/s/ David W. Garner
|
|
David W. Garner
|
|
Executive Vice President, Controller
|
|
and Chief Accounting Officer
|
|