☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Arkansas
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71-0407808
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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501 Main Street
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71601
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Pine Bluff
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(Zip Code)
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Arkansas
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(Address of principal executive offices)
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Title of each class
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Trading Symbol(s)
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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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SFNC
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The NASDAQ Global Select Market
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging Growth company
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☐
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Page
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Item 1.
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Legal Proceedings
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*
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Item 2.
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Unregistered Sales of Equity Securities and Use of Proceeds
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*
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Item 3.
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Defaults Upon Senior Securities
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*
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Item 4.
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Mine Safety Disclosures
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*
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Item 5.
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Other Information
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*
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Part I:
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Financial Information
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Item 1.
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Financial Statements (Unaudited)
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June 30,
|
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December 31,
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||||
(In thousands, except share data)
|
2019
|
|
2018
|
||||
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(Unaudited)
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|
|||
ASSETS
|
|
|
|
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Cash and non-interest bearing balances due from banks
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$
|
145,491
|
|
|
$
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171,792
|
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Interest bearing balances due from banks and federal funds sold
|
509,765
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661,666
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Cash and cash equivalents
|
655,256
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833,458
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Interest bearing balances due from banks - time
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5,041
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4,934
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Investment securities:
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|
|
||||
Held-to-maturity
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47,455
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289,194
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||
Available-for-sale
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2,342,387
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2,151,752
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Total investments
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2,389,842
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2,440,946
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Mortgage loans held for sale
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34,999
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26,799
|
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Loans:
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|
|
|
||||
Legacy loans
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9,262,497
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8,430,388
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Allowance for loan losses
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(63,067
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)
|
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(56,599
|
)
|
||
Loans acquired, net of discount and allowance
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3,864,516
|
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3,292,783
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Net loans
|
13,063,946
|
|
|
11,666,572
|
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||
Premises and equipment
|
370,551
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|
295,060
|
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||
Foreclosed assets and other real estate owned
|
24,761
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25,565
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Interest receivable
|
54,781
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|
49,938
|
|
||
Bank owned life insurance
|
233,345
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|
|
193,170
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|
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Goodwill
|
926,450
|
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845,687
|
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Other intangible assets
|
104,096
|
|
|
91,334
|
|
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Other assets
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74,367
|
|
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69,874
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Total assets
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$
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17,937,435
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$
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16,543,337
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||
Deposits:
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||||
Non-interest bearing transaction accounts
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$
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2,954,032
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$
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2,672,405
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Interest bearing transaction accounts and savings deposits
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7,258,005
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6,830,191
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Time deposits
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3,304,176
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2,896,156
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Total deposits
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13,516,213
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12,398,752
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Federal funds purchased and securities sold under agreements to repurchase
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130,470
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95,792
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Other borrowings
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1,324,094
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1,345,450
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Subordinated debentures
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354,132
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353,950
|
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Accrued interest and other liabilities
|
143,013
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|
102,959
|
|
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Total liabilities
|
15,467,922
|
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14,296,903
|
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|
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||||
Stockholders’ equity:
|
|
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Common stock, Class A, $0.01 par value; 175,000,000 shares authorized at June 30, 2019 and December 31, 2018; 96,590,656 and 92,347,643 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively
|
966
|
|
|
923
|
|
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Surplus
|
1,705,262
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1,597,944
|
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Undivided profits
|
747,969
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674,941
|
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Accumulated other comprehensive income (loss)
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15,316
|
|
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(27,374
|
)
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||
Total stockholders’ equity
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2,469,513
|
|
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2,246,434
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Total liabilities and stockholders’ equity
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$
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17,937,435
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$
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16,543,337
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Three Months Ended June 30,
|
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Six Months Ended June 30,
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||||||||||||
(In thousands, except per share data)
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2019
|
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2018
|
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2019
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2018
|
||||||||
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(Unaudited)
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(Unaudited)
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||||||||||||
INTEREST INCOME
|
|
|
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|
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||||||||
Loans
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$
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178,122
|
|
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$
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150,253
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|
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$
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337,562
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$
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293,603
|
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Interest bearing balances due from banks and federal funds sold
|
1,121
|
|
|
1,414
|
|
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3,275
|
|
|
2,423
|
|
||||
Investment securities
|
16,594
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|
|
14,296
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|
|
33,906
|
|
|
26,918
|
|
||||
Mortgage loans held for sale
|
332
|
|
|
305
|
|
|
542
|
|
|
463
|
|
||||
TOTAL INTEREST INCOME
|
196,169
|
|
|
166,268
|
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375,285
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323,407
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|
||||
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||||||||
INTEREST EXPENSE
|
|
|
|
|
|
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|
||||||||
Deposits
|
34,796
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|
18,461
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65,546
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|
|
34,058
|
|
||||
Federal funds purchased and securities sold under agreements to repurchase
|
257
|
|
|
88
|
|
|
393
|
|
|
198
|
|
||||
Other borrowings
|
6,219
|
|
|
5,141
|
|
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13,012
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|
|
10,280
|
|
||||
Subordinated notes and debentures
|
4,541
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5,741
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8,952
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7,068
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|
||||
TOTAL INTEREST EXPENSE
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45,813
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29,431
|
|
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87,903
|
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51,604
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|
||||
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||||||||
NET INTEREST INCOME
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150,356
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|
|
136,837
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287,382
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|
271,803
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|
||||
Provision for loan losses
|
7,079
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|
|
9,033
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|
|
16,364
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|
|
18,183
|
|
||||
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|
|
|
|
|
|
|
||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
143,277
|
|
|
127,804
|
|
|
271,018
|
|
|
253,620
|
|
||||
|
|
|
|
|
|
|
|
||||||||
NON-INTEREST INCOME
|
|
|
|
|
|
|
|
||||||||
Trust income
|
5,794
|
|
|
5,622
|
|
|
11,502
|
|
|
10,871
|
|
||||
Service charges on deposit accounts
|
10,557
|
|
|
10,063
|
|
|
20,625
|
|
|
20,408
|
|
||||
Other service charges and fees
|
1,312
|
|
|
2,017
|
|
|
2,601
|
|
|
4,767
|
|
||||
Mortgage lending income
|
3,656
|
|
|
2,780
|
|
|
6,479
|
|
|
6,252
|
|
||||
SBA lending income
|
895
|
|
|
350
|
|
|
1,392
|
|
|
1,323
|
|
||||
Investment banking income
|
360
|
|
|
814
|
|
|
978
|
|
|
1,648
|
|
||||
Debit and credit card fees
|
7,212
|
|
|
10,105
|
|
|
13,310
|
|
|
18,901
|
|
||||
Bank owned life insurance income
|
1,260
|
|
|
1,102
|
|
|
2,055
|
|
|
2,205
|
|
||||
Gain (loss) on sale of securities, net
|
2,823
|
|
|
(7
|
)
|
|
5,563
|
|
|
(1
|
)
|
||||
Other income
|
5,137
|
|
|
5,202
|
|
|
8,262
|
|
|
9,209
|
|
||||
TOTAL NON-INTEREST INCOME
|
39,006
|
|
|
38,048
|
|
|
72,767
|
|
|
75,583
|
|
||||
|
|
|
|
|
|
|
|
||||||||
NON-INTEREST EXPENSE
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
56,128
|
|
|
55,678
|
|
|
112,495
|
|
|
112,035
|
|
||||
Occupancy expense, net
|
6,919
|
|
|
7,921
|
|
|
14,394
|
|
|
14,881
|
|
||||
Furniture and equipment expense
|
4,206
|
|
|
4,020
|
|
|
7,564
|
|
|
8,423
|
|
||||
Other real estate and foreclosure expense
|
591
|
|
|
1,382
|
|
|
1,228
|
|
|
2,402
|
|
||||
Deposit insurance
|
2,510
|
|
|
1,856
|
|
|
4,550
|
|
|
3,984
|
|
||||
Merger related costs
|
7,522
|
|
|
1,465
|
|
|
8,992
|
|
|
3,176
|
|
||||
Other operating expenses
|
32,867
|
|
|
26,185
|
|
|
62,929
|
|
|
51,679
|
|
||||
TOTAL NON-INTEREST EXPENSE
|
110,743
|
|
|
98,507
|
|
|
212,152
|
|
|
196,580
|
|
||||
|
|
|
|
|
|
|
|
||||||||
INCOME BEFORE INCOME TAXES
|
71,540
|
|
|
67,345
|
|
|
131,633
|
|
|
132,623
|
|
||||
Provision for income taxes
|
15,616
|
|
|
13,783
|
|
|
28,014
|
|
|
27,749
|
|
||||
|
|
|
|
|
|
|
|
||||||||
NET INCOME
|
55,924
|
|
|
53,562
|
|
|
103,619
|
|
|
104,874
|
|
||||
Preferred stock dividends
|
326
|
|
|
—
|
|
|
326
|
|
|
—
|
|
||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
|
$
|
55,598
|
|
|
$
|
53,562
|
|
|
$
|
103,293
|
|
|
$
|
104,874
|
|
BASIC EARNINGS PER SHARE
|
$
|
0.58
|
|
|
$
|
0.58
|
|
|
$
|
1.10
|
|
|
$
|
1.14
|
|
DILUTED EARNINGS PER SHARE
|
$
|
0.58
|
|
|
$
|
0.58
|
|
|
$
|
1.09
|
|
|
$
|
1.13
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(Unaudited)
|
|
(Unaudited)
|
||||||||||||
NET INCOME
|
$
|
55,924
|
|
|
$
|
53,562
|
|
|
$
|
103,619
|
|
|
$
|
104,874
|
|
|
|
|
|
|
|
|
|
||||||||
OTHER COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains (losses) arising during the period on available-for-sale securities
|
31,681
|
|
|
(8,294
|
)
|
|
60,811
|
|
|
(31,029
|
)
|
||||
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 (losses) included in net income
|
2,823
|
|
|
(7
|
)
|
|
5,563
|
|
|
(1
|
)
|
||||
Other comprehensive gain (loss), before tax effect
|
28,858
|
|
|
(8,287
|
)
|
|
57,795
|
|
|
(31,028
|
)
|
||||
Less: Tax effect of other comprehensive income (loss)
|
7,542
|
|
|
(2,166
|
)
|
|
15,105
|
|
|
(8,109
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
|
21,316
|
|
|
(6,121
|
)
|
|
42,690
|
|
|
(22,919
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
COMPREHENSIVE INCOME
|
$
|
77,240
|
|
|
$
|
47,441
|
|
|
$
|
146,309
|
|
|
$
|
81,955
|
|
(In thousands)
|
June 30, 2019
|
|
June 30, 2018
|
||||
|
(Unaudited)
|
||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
||
Net income
|
$
|
103,619
|
|
|
$
|
104,874
|
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
16,019
|
|
|
13,600
|
|
||
Provision for loan losses
|
16,364
|
|
|
18,183
|
|
||
(Gain) loss on sale of investments
|
(5,563
|
)
|
|
1
|
|
||
Net accretion of investment securities and assets
|
(22,663
|
)
|
|
(27,882
|
)
|
||
Net amortization (accretion) on borrowings
|
182
|
|
|
(341
|
)
|
||
Stock-based compensation expense
|
6,249
|
|
|
5,416
|
|
||
(Gain) loss on sale of foreclosed assets held for sale
|
(16
|
)
|
|
212
|
|
||
Gain on sale of mortgage loans held for sale
|
(8,257
|
)
|
|
(5,832
|
)
|
||
Deferred income taxes
|
4,940
|
|
|
2,052
|
|
||
Income from bank owned life insurance
|
(2,136
|
)
|
|
(2,205
|
)
|
||
Originations of mortgage loans held for sale
|
(282,204
|
)
|
|
(265,704
|
)
|
||
Proceeds from sale of mortgage loans held for sale
|
282,861
|
|
|
255,762
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Interest receivable
|
(1,494
|
)
|
|
(555
|
)
|
||
Lease right-of-use assets
|
(2,469
|
)
|
|
—
|
|
||
Other assets
|
14,999
|
|
|
(7,140
|
)
|
||
Accrued interest and other liabilities
|
(4,376
|
)
|
|
29,161
|
|
||
Income taxes payable
|
2,553
|
|
|
(8,947
|
)
|
||
Net cash provided by operating activities
|
118,608
|
|
|
110,655
|
|
||
|
|
|
|
||||
INVESTING ACTIVITIES
|
|
|
|
||||
Net originations of loans
|
(302,151
|
)
|
|
(519,175
|
)
|
||
Decrease in due from banks - time
|
395
|
|
|
340
|
|
||
Purchases of premises and equipment, net
|
(21,689
|
)
|
|
(10,360
|
)
|
||
Proceeds from sale of foreclosed assets held for sale
|
9,870
|
|
|
8,983
|
|
||
Proceeds from sale of available-for-sale securities
|
461,470
|
|
|
7,726
|
|
||
Proceeds from maturities of available-for-sale securities
|
289,493
|
|
|
122,963
|
|
||
Purchases of available-for-sale securities
|
(384,951
|
)
|
|
(496,664
|
)
|
||
Proceeds from maturities of held-to-maturity securities
|
25,406
|
|
|
34,958
|
|
||
Purchases of bank owned life insurance
|
—
|
|
|
(4,000
|
)
|
||
Proceeds from bank owned life insurance death benefits
|
1,310
|
|
|
616
|
|
||
Disposition of assets and liabilities held for sale
|
1,393
|
|
|
(66,641
|
)
|
||
Purchase of Reliance Bancshares, Inc
|
(37,017
|
)
|
|
—
|
|
||
Net cash provided by (used in) investing activities
|
43,529
|
|
|
(921,254
|
)
|
||
|
|
|
|
||||
FINANCING ACTIVITIES
|
|
|
|
||||
Net change in deposits
|
(107,806
|
)
|
|
860,573
|
|
||
Proceeds from issuance of subordinated notes
|
—
|
|
|
326,355
|
|
||
Repayments of subordinated debentures
|
—
|
|
|
(54,642
|
)
|
||
Dividends paid on preferred stock
|
(326
|
)
|
|
—
|
|
||
Dividends paid on common stock
|
(30,265
|
)
|
|
(27,922
|
)
|
||
Net change in other borrowed funds
|
(178,756
|
)
|
|
71,787
|
|
||
Net change in federal funds purchased and securities sold under agreements to repurchase
|
20,532
|
|
|
(22,643
|
)
|
||
Net shares issued under stock compensation plans
|
(3,030
|
)
|
|
1,869
|
|
||
Shares issued under employee stock purchase plan
|
1,312
|
|
|
1,026
|
|
||
Retirement of preferred stock
|
(42,000
|
)
|
|
—
|
|
||
Net cash (used in) provided by financing activities
|
(340,339
|
)
|
|
1,156,403
|
|
||
|
|
|
|
||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
(178,202
|
)
|
|
345,804
|
|
||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
833,458
|
|
|
598,042
|
|
||
|
|
|
|
||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
655,256
|
|
|
$
|
943,846
|
|
(In thousands, except share data)
|
|
Preferred Stock
|
|
Common
Stock
|
|
Surplus
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Undivided
Profits
|
|
Total
|
||||||||||||
Three Months Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, March 31, 2019 (Unaudited)
|
|
$
|
—
|
|
|
$
|
926
|
|
|
$
|
1,599,566
|
|
|
$
|
(6,000
|
)
|
|
$
|
707,829
|
|
|
$
|
2,302,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,316
|
|
|
55,924
|
|
|
77,240
|
|
||||||
Stock-based compensation plans, net – 22,672 shares
|
|
—
|
|
|
—
|
|
|
2,906
|
|
|
—
|
|
|
—
|
|
|
2,906
|
|
||||||
Stock issued for Reliance acquisition – 3,999,623 shares
|
|
42,000
|
|
|
40
|
|
|
102,790
|
|
|
—
|
|
|
—
|
|
|
144,830
|
|
||||||
Preferred stock retirement
|
|
(42,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42,000
|
)
|
||||||
Dividends on preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(326
|
)
|
|
(326
|
)
|
||||||
Dividends on common stock – $0.16 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,458
|
)
|
|
(15,458
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, June 30, 2019 (Unaudited)
|
|
$
|
—
|
|
|
$
|
966
|
|
|
$
|
1,705,262
|
|
|
$
|
15,316
|
|
|
$
|
747,969
|
|
|
$
|
2,469,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, March 31, 2018 (Unaudited)
|
|
$
|
—
|
|
|
$
|
922
|
|
|
$
|
1,590,086
|
|
|
$
|
(34,062
|
)
|
|
$
|
552,105
|
|
|
$
|
2,109,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,121
|
)
|
|
53,562
|
|
|
47,441
|
|
||||||
Stock-based compensation plans, net – 38,981 shares
|
|
—
|
|
|
1
|
|
|
4,256
|
|
|
—
|
|
|
—
|
|
|
4,257
|
|
||||||
Dividends on common stock – $0.15 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,841
|
)
|
|
(13,841
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, June 30, 2018 (Unaudited)
|
|
$
|
—
|
|
|
$
|
923
|
|
|
$
|
1,594,342
|
|
|
$
|
(40,183
|
)
|
|
$
|
591,826
|
|
|
$
|
2,146,908
|
|
(In thousands, except share data)
|
|
Preferred Stock
|
|
Common
Stock
|
|
Surplus
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Undivided
Profits
|
|
Total
|
||||||||||||
Six Months Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, December 31, 2018
|
|
$
|
—
|
|
|
$
|
923
|
|
|
$
|
1,597,944
|
|
|
$
|
(27,374
|
)
|
|
$
|
674,941
|
|
|
$
|
2,246,434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42,690
|
|
|
103,619
|
|
|
146,309
|
|
||||||
Stock issued for employee stock purchase plan – 60,413 shares
|
|
—
|
|
|
1
|
|
|
1,311
|
|
|
—
|
|
|
—
|
|
|
1,312
|
|
||||||
Stock-based compensation plans, net – 182,977 shares
|
|
—
|
|
|
2
|
|
|
3,217
|
|
|
—
|
|
|
—
|
|
|
3,219
|
|
||||||
Stock issued for Reliance acquisition – 3,999,623 shares
|
|
42,000
|
|
|
40
|
|
|
102,790
|
|
|
—
|
|
|
—
|
|
|
144,830
|
|
||||||
Preferred stock retirement
|
|
(42,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42,000
|
)
|
||||||
Dividends on preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(326
|
)
|
|
(326
|
)
|
||||||
Dividends on common stock – $0.32 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30,265
|
)
|
|
(30,265
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, June 30, 2019 (Unaudited)
|
|
$
|
—
|
|
|
$
|
966
|
|
|
$
|
1,705,262
|
|
|
$
|
15,316
|
|
|
$
|
747,969
|
|
|
$
|
2,469,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Six Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, December 31, 2017
|
|
$
|
—
|
|
|
$
|
920
|
|
|
$
|
1,586,034
|
|
|
$
|
(17,264
|
)
|
|
$
|
514,874
|
|
|
$
|
2,084,564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,919
|
)
|
|
104,874
|
|
|
81,955
|
|
||||||
Stock issued for employee stock purchase plan – 39,782 shares
|
|
—
|
|
|
—
|
|
|
1,026
|
|
|
—
|
|
|
—
|
|
|
1,026
|
|
||||||
Stock-based compensation plans, net – 212,470 shares
|
|
—
|
|
|
3
|
|
|
7,282
|
|
|
—
|
|
|
—
|
|
|
7,285
|
|
||||||
Dividends on common stock – $0.30 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27,922
|
)
|
|
(27,922
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, June 30, 2018 (Unaudited)
|
|
$
|
—
|
|
|
$
|
923
|
|
|
$
|
1,594,342
|
|
|
$
|
(40,183
|
)
|
|
$
|
591,826
|
|
|
$
|
2,146,908
|
|
(In thousands)
|
Acquired from Reliance
|
|
Fair Value Adjustments
|
|
Fair Value
|
||||||
Assets Acquired
|
|
|
|
|
|
||||||
Cash and due from banks
|
$
|
25,693
|
|
|
$
|
—
|
|
|
$
|
25,693
|
|
Due from banks - time
|
502
|
|
|
—
|
|
|
502
|
|
|||
Investment securities
|
287,983
|
|
|
(1,763
|
)
|
|
286,220
|
|
|||
Loans acquired
|
1,138,527
|
|
|
(41,657
|
)
|
|
1,096,870
|
|
|||
Allowance for loan losses
|
(10,808
|
)
|
|
10,808
|
|
|
—
|
|
|||
Foreclosed assets
|
11,092
|
|
|
(3,992
|
)
|
|
7,100
|
|
|||
Premises and equipment
|
32,452
|
|
|
(3,001
|
)
|
|
29,451
|
|
|||
Bank owned life insurance
|
39,348
|
|
|
—
|
|
|
39,348
|
|
|||
Core deposit intangible
|
—
|
|
|
18,350
|
|
|
18,350
|
|
|||
Other assets
|
24,175
|
|
|
5,001
|
|
|
29,176
|
|
|||
Total assets acquired
|
$
|
1,548,964
|
|
|
$
|
(16,254
|
)
|
|
$
|
1,532,710
|
|
|
|
|
|
|
|
||||||
Liabilities Assumed
|
|
|
|
|
|
||||||
Deposits:
|
|
|
|
|
|
||||||
Non-interest bearing transaction accounts
|
$
|
108,845
|
|
|
$
|
(33
|
)
|
|
$
|
108,812
|
|
Interest bearing transaction accounts and savings deposits
|
639,798
|
|
|
—
|
|
|
639,798
|
|
|||
Time deposits
|
478,415
|
|
|
(1,758
|
)
|
|
476,657
|
|
|||
Total deposits
|
1,227,058
|
|
|
(1,791
|
)
|
|
1,225,267
|
|
|||
Securities sold under agreement to repurchase
|
14,146
|
|
|
—
|
|
|
14,146
|
|
|||
Other borrowings
|
162,900
|
|
|
(5,500
|
)
|
|
157,400
|
|
|||
Accrued interest and other liabilities
|
8,185
|
|
|
936
|
|
|
9,121
|
|
|||
Total liabilities assumed
|
1,412,289
|
|
|
(6,355
|
)
|
|
1,405,934
|
|
|||
Equity
|
136,675
|
|
|
(94,675
|
)
|
|
42,000
|
|
|||
Total equity assumed
|
136,675
|
|
|
(94,675
|
)
|
|
42,000
|
|
|||
Total liabilities and equity assumed
|
$
|
1,548,964
|
|
|
$
|
(101,030
|
)
|
|
$
|
1,447,934
|
|
Net assets acquired
|
|
|
|
|
84,776
|
|
|||||
Purchase price
|
|
|
|
|
165,539
|
|
|||||
Goodwill
|
|
|
|
|
$
|
80,763
|
|
|
June 30, 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
|
$
|
999
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
999
|
|
|
$
|
16,990
|
|
|
$
|
—
|
|
|
$
|
(49
|
)
|
|
$
|
16,941
|
|
Mortgage-backed securities
|
12,225
|
|
|
103
|
|
|
(59
|
)
|
|
12,269
|
|
|
13,346
|
|
|
5
|
|
|
(412
|
)
|
|
12,939
|
|
||||||||
State and political subdivisions
|
32,236
|
|
|
1,090
|
|
|
(12
|
)
|
|
33,314
|
|
|
256,863
|
|
|
3,029
|
|
|
(954
|
)
|
|
258,938
|
|
||||||||
Other securities
|
1,995
|
|
|
63
|
|
|
—
|
|
|
2,058
|
|
|
1,995
|
|
|
17
|
|
|
—
|
|
|
2,012
|
|
||||||||
Total HTM
|
$
|
47,455
|
|
|
$
|
1,256
|
|
|
$
|
(71
|
)
|
|
$
|
48,640
|
|
|
$
|
289,194
|
|
|
$
|
3,051
|
|
|
$
|
(1,415
|
)
|
|
$
|
290,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
U.S. Government agencies
|
$
|
197,382
|
|
|
$
|
1,654
|
|
|
$
|
(1,380
|
)
|
|
$
|
197,656
|
|
|
$
|
157,523
|
|
|
$
|
518
|
|
|
$
|
(3,740
|
)
|
|
$
|
154,301
|
|
Mortgage-backed securities
|
1,346,839
|
|
|
5,971
|
|
|
(7,050
|
)
|
|
1,345,760
|
|
|
1,552,487
|
|
|
3,097
|
|
|
(32,684
|
)
|
|
1,522,900
|
|
||||||||
State and political subdivisions
|
617,987
|
|
|
18,841
|
|
|
(270
|
)
|
|
636,558
|
|
|
320,142
|
|
|
171
|
|
|
(5,470
|
)
|
|
314,843
|
|
||||||||
Other securities
|
161,961
|
|
|
545
|
|
|
(93
|
)
|
|
162,413
|
|
|
157,471
|
|
|
2,251
|
|
|
(14
|
)
|
|
159,708
|
|
||||||||
Total AFS
|
$
|
2,324,169
|
|
|
$
|
27,011
|
|
|
$
|
(8,793
|
)
|
|
$
|
2,342,387
|
|
|
$
|
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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Mortgage-backed securities
|
—
|
|
|
—
|
|
|
5,845
|
|
|
(59
|
)
|
|
5,845
|
|
|
(59
|
)
|
||||||
State and political subdivisions
|
—
|
|
|
—
|
|
|
2,294
|
|
|
(12
|
)
|
|
2,294
|
|
|
(12
|
)
|
||||||
Total HTM
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,139
|
|
|
$
|
(71
|
)
|
|
$
|
8,139
|
|
|
$
|
(71
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agencies
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
114,443
|
|
|
$
|
(1,380
|
)
|
|
$
|
114,443
|
|
|
$
|
(1,380
|
)
|
Mortgage-backed securities
|
20,839
|
|
|
(102
|
)
|
|
749,380
|
|
|
(6,948
|
)
|
|
770,219
|
|
|
(7,050
|
)
|
||||||
State and political subdivisions
|
23,205
|
|
|
(15
|
)
|
|
29,156
|
|
|
(255
|
)
|
|
52,361
|
|
|
(270
|
)
|
||||||
Other securities
|
4,994
|
|
|
(93
|
)
|
|
100
|
|
|
—
|
|
|
5,094
|
|
|
(93
|
)
|
||||||
Total AFS
|
$
|
49,038
|
|
|
$
|
(210
|
)
|
|
$
|
893,079
|
|
|
$
|
(8,583
|
)
|
|
$
|
942,117
|
|
|
$
|
(8,793
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Taxable:
|
|
|
|
|
|
|
|
|
|
||||||
Held-to-maturity
|
$
|
289
|
|
|
$
|
546
|
|
|
$
|
727
|
|
|
$
|
1,113
|
|
Available-for-sale
|
11,705
|
|
|
10,218
|
|
|
24,256
|
|
|
19,250
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Non-taxable:
|
|
|
|
|
|
|
|
||||||||
Held-to-maturity
|
89
|
|
|
1,897
|
|
|
1,251
|
|
|
3,833
|
|
||||
Available-for-sale
|
4,511
|
|
|
1,635
|
|
|
7,672
|
|
|
2,722
|
|
||||
Total
|
$
|
16,594
|
|
|
$
|
14,296
|
|
|
$
|
33,906
|
|
|
$
|
26,918
|
|
|
Held-to-Maturity
|
|
Available-for-Sale
|
||||||||||||
(In thousands)
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
One year or less
|
$
|
6,118
|
|
|
$
|
6,122
|
|
|
$
|
11,673
|
|
|
$
|
11,681
|
|
After one through five years
|
19,353
|
|
|
19,716
|
|
|
74,767
|
|
|
75,019
|
|
||||
After five through ten years
|
5,563
|
|
|
5,785
|
|
|
151,019
|
|
|
153,373
|
|
||||
After ten years
|
4,196
|
|
|
4,748
|
|
|
589,198
|
|
|
605,410
|
|
||||
Securities not due on a single maturity date
|
12,225
|
|
|
12,269
|
|
|
1,346,839
|
|
|
1,345,760
|
|
||||
Other securities (no maturity)
|
—
|
|
|
—
|
|
|
150,673
|
|
|
151,144
|
|
||||
Total
|
$
|
47,455
|
|
|
$
|
48,640
|
|
|
$
|
2,324,169
|
|
|
$
|
2,342,387
|
|
(In thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Consumer:
|
|
|
|
|
|
||
Credit cards
|
$
|
187,919
|
|
|
$
|
204,173
|
|
Other consumer
|
207,445
|
|
|
201,297
|
|
||
Total consumer
|
395,364
|
|
|
405,470
|
|
||
Real Estate:
|
|
|
|
||||
Construction
|
1,540,352
|
|
|
1,300,723
|
|
||
Single family residential
|
1,444,525
|
|
|
1,440,443
|
|
||
Other commercial
|
3,531,273
|
|
|
3,225,287
|
|
||
Total real estate
|
6,516,150
|
|
|
5,966,453
|
|
||
Commercial:
|
|
|
|
||||
Commercial
|
1,871,695
|
|
|
1,774,909
|
|
||
Agricultural
|
191,922
|
|
|
164,514
|
|
||
Total commercial
|
2,063,617
|
|
|
1,939,423
|
|
||
Other
|
287,366
|
|
|
119,042
|
|
||
Loans
|
9,262,497
|
|
|
8,430,388
|
|
||
Loans acquired, net of discount and allowance (1)
|
3,864,516
|
|
|
3,292,783
|
|
||
Total loans
|
$
|
13,127,013
|
|
|
$
|
11,723,171
|
|
(In thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Consumer:
|
|
|
|
|
|
||
Credit cards
|
$
|
327
|
|
|
$
|
296
|
|
Other consumer
|
1,571
|
|
|
2,159
|
|
||
Total consumer
|
1,898
|
|
|
2,455
|
|
||
Real estate:
|
|
|
|
||||
Construction
|
2,140
|
|
|
1,269
|
|
||
Single family residential
|
15,648
|
|
|
11,939
|
|
||
Other commercial
|
9,847
|
|
|
7,205
|
|
||
Total real estate
|
27,635
|
|
|
20,413
|
|
||
Commercial:
|
|
|
|
||||
Commercial
|
31,240
|
|
|
10,049
|
|
||
Agricultural
|
1,183
|
|
|
1,284
|
|
||
Total commercial
|
32,423
|
|
|
11,333
|
|
||
Total
|
$
|
61,956
|
|
|
$
|
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
|
||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Credit cards
|
$
|
704
|
|
|
$
|
556
|
|
|
$
|
1,260
|
|
|
$
|
186,659
|
|
|
$
|
187,919
|
|
|
$
|
230
|
|
Other consumer
|
2,800
|
|
|
579
|
|
|
3,379
|
|
|
204,066
|
|
|
207,445
|
|
|
2
|
|
||||||
Total consumer
|
3,504
|
|
|
1,135
|
|
|
4,639
|
|
|
390,725
|
|
|
395,364
|
|
|
232
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
4,031
|
|
|
989
|
|
|
5,020
|
|
|
1,535,332
|
|
|
1,540,352
|
|
|
—
|
|
||||||
Single family residential
|
8,976
|
|
|
6,754
|
|
|
15,730
|
|
|
1,428,795
|
|
|
1,444,525
|
|
|
17
|
|
||||||
Other commercial
|
3,972
|
|
|
5,107
|
|
|
9,079
|
|
|
3,522,194
|
|
|
3,531,273
|
|
|
—
|
|
||||||
Total real estate
|
16,979
|
|
|
12,850
|
|
|
29,829
|
|
|
6,486,321
|
|
|
6,516,150
|
|
|
17
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
6,364
|
|
|
7,778
|
|
|
14,142
|
|
|
1,857,553
|
|
|
1,871,695
|
|
|
18
|
|
||||||
Agricultural
|
242
|
|
|
898
|
|
|
1,140
|
|
|
190,782
|
|
|
191,922
|
|
|
—
|
|
||||||
Total commercial
|
6,606
|
|
|
8,676
|
|
|
15,282
|
|
|
2,048,335
|
|
|
2,063,617
|
|
|
18
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
287,366
|
|
|
287,366
|
|
|
—
|
|
||||||
Total
|
$
|
27,089
|
|
|
$
|
22,661
|
|
|
$
|
49,750
|
|
|
$
|
9,212,747
|
|
|
$
|
9,262,497
|
|
|
$
|
267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
|
Average
Investment in
Impaired
Loans
|
|
Interest
Income
Recognized
|
||||||||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2019 |
|
Six Months Ended
June 30, 2019 |
|||||||||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Credit cards
|
$
|
326
|
|
|
$
|
326
|
|
|
$
|
—
|
|
|
$
|
326
|
|
|
$
|
—
|
|
|
$
|
332
|
|
|
$
|
40
|
|
|
$
|
320
|
|
|
$
|
70
|
|
Other consumer
|
1,715
|
|
|
1,571
|
|
|
—
|
|
|
1,571
|
|
|
—
|
|
|
1,563
|
|
|
12
|
|
|
1,762
|
|
|
25
|
|
|||||||||
Total consumer
|
2,041
|
|
|
1,897
|
|
|
—
|
|
|
1,897
|
|
|
—
|
|
|
1,895
|
|
|
52
|
|
|
2,082
|
|
|
95
|
|
|||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
2,235
|
|
|
1,735
|
|
|
405
|
|
|
2,140
|
|
|
237
|
|
|
2,355
|
|
|
14
|
|
|
1,993
|
|
|
28
|
|
|||||||||
Single family residential
|
16,769
|
|
|
12,295
|
|
|
3,353
|
|
|
15,648
|
|
|
31
|
|
|
15,486
|
|
|
105
|
|
|
14,351
|
|
|
203
|
|
|||||||||
Other commercial
|
8,823
|
|
|
4,900
|
|
|
3,370
|
|
|
8,270
|
|
|
227
|
|
|
7,676
|
|
|
59
|
|
|
8,751
|
|
|
123
|
|
|||||||||
Total real estate
|
27,827
|
|
|
18,930
|
|
|
7,128
|
|
|
26,058
|
|
|
495
|
|
|
25,517
|
|
|
178
|
|
|
25,095
|
|
|
354
|
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial
|
31,718
|
|
|
8,907
|
|
|
21,050
|
|
|
29,957
|
|
|
5,744
|
|
|
29,776
|
|
|
187
|
|
|
23,811
|
|
|
335
|
|
|||||||||
Agricultural
|
2,202
|
|
|
649
|
|
|
532
|
|
|
1,181
|
|
|
—
|
|
|
1,148
|
|
|
8
|
|
|
1,159
|
|
|
16
|
|
|||||||||
Total commercial
|
33,920
|
|
|
9,556
|
|
|
21,582
|
|
|
31,138
|
|
|
5,744
|
|
|
30,924
|
|
|
195
|
|
|
24,970
|
|
|
351
|
|
|||||||||
Total
|
$
|
63,788
|
|
|
$
|
30,383
|
|
|
$
|
28,710
|
|
|
$
|
59,093
|
|
|
$
|
6,239
|
|
|
$
|
58,336
|
|
|
$
|
425
|
|
|
$
|
52,147
|
|
|
$
|
800
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2018 |
|
Six Months Ended
June 30, 2018 |
|||||||||||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Credit cards
|
$
|
296
|
|
|
$
|
296
|
|
|
$
|
—
|
|
|
$
|
296
|
|
|
$
|
—
|
|
|
$
|
204
|
|
|
$
|
10
|
|
|
$
|
236
|
|
|
$
|
25
|
|
Other consumer
|
2,311
|
|
|
2,159
|
|
|
—
|
|
|
2,159
|
|
|
—
|
|
|
4,205
|
|
|
33
|
|
|
4,373
|
|
|
67
|
|
|||||||||
Total consumer
|
2,607
|
|
|
2,455
|
|
|
—
|
|
|
2,455
|
|
|
—
|
|
|
4,409
|
|
|
43
|
|
|
4,609
|
|
|
92
|
|
|||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
1,344
|
|
|
784
|
|
|
485
|
|
|
1,269
|
|
|
211
|
|
|
1,887
|
|
|
13
|
|
|
1,899
|
|
|
29
|
|
|||||||||
Single family residential
|
12,906
|
|
|
11,468
|
|
|
616
|
|
|
12,084
|
|
|
36
|
|
|
14,423
|
|
|
118
|
|
|
14,154
|
|
|
218
|
|
|||||||||
Other commercial
|
8,434
|
|
|
5,442
|
|
|
5,458
|
|
|
10,900
|
|
|
—
|
|
|
13,528
|
|
|
104
|
|
|
14,588
|
|
|
224
|
|
|||||||||
Total real estate
|
22,684
|
|
|
17,694
|
|
|
6,559
|
|
|
24,253
|
|
|
247
|
|
|
29,838
|
|
|
235
|
|
|
30,641
|
|
|
471
|
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial
|
10,361
|
|
|
7,254
|
|
|
4,628
|
|
|
11,882
|
|
|
437
|
|
|
7,204
|
|
|
61
|
|
|
7,428
|
|
|
114
|
|
|||||||||
Agricultural
|
2,419
|
|
|
1,180
|
|
|
—
|
|
|
1,180
|
|
|
—
|
|
|
1,142
|
|
|
11
|
|
|
1,474
|
|
|
23
|
|
|||||||||
Total commercial
|
12,780
|
|
|
8,434
|
|
|
4,628
|
|
|
13,062
|
|
|
437
|
|
|
8,346
|
|
|
72
|
|
|
8,902
|
|
|
137
|
|
|||||||||
Total
|
$
|
38,071
|
|
|
$
|
28,583
|
|
|
$
|
11,187
|
|
|
$
|
39,770
|
|
|
$
|
684
|
|
|
$
|
42,593
|
|
|
$
|
350
|
|
|
$
|
44,152
|
|
|
$
|
700
|
|
|
Accruing TDR Loans
|
|
Nonaccrual TDR Loans
|
|
Total TDR Loans
|
|||||||||||||||
(Dollars in thousands)
|
Number
|
|
Balance
|
|
Number
|
|
Balance
|
|
Number
|
|
Balance
|
|||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Construction
|
—
|
|
|
$
|
—
|
|
|
3
|
|
|
$
|
405
|
|
|
3
|
|
|
$
|
405
|
|
Single-family residential
|
5
|
|
|
221
|
|
|
10
|
|
|
583
|
|
|
15
|
|
|
804
|
|
|||
Other commercial
|
2
|
|
|
3,213
|
|
|
2
|
|
|
978
|
|
|
4
|
|
|
4,191
|
|
|||
Total real estate
|
7
|
|
|
3,434
|
|
|
15
|
|
|
1,966
|
|
|
22
|
|
|
5,400
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
4
|
|
|
2,812
|
|
|
5
|
|
|
311
|
|
|
9
|
|
|
3,123
|
|
|||
Total commercial
|
4
|
|
|
2,812
|
|
|
5
|
|
|
311
|
|
|
9
|
|
|
3,123
|
|
|||
Total
|
11
|
|
|
$
|
6,246
|
|
|
20
|
|
|
$
|
2,277
|
|
|
31
|
|
|
$
|
8,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
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 June 30,
|
|
Change in
Maturity
Date
|
|
Change in
Rate
|
|
Financial Impact
on Date of
Restructure
|
|||||||||||
Six Months Ended June 30, 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
|
||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Credit cards
|
$
|
187,363
|
|
|
$
|
—
|
|
|
$
|
556
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
187,919
|
|
Other consumer
|
205,416
|
|
|
—
|
|
|
2,029
|
|
|
—
|
|
|
—
|
|
|
207,445
|
|
||||||
Total consumer
|
392,779
|
|
|
—
|
|
|
2,585
|
|
|
—
|
|
|
—
|
|
|
395,364
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
1,536,632
|
|
|
477
|
|
|
3,243
|
|
|
—
|
|
|
—
|
|
|
1,540,352
|
|
||||||
Single family residential
|
1,420,143
|
|
|
2,674
|
|
|
21,481
|
|
|
227
|
|
|
—
|
|
|
1,444,525
|
|
||||||
Other commercial
|
3,487,955
|
|
|
21,143
|
|
|
22,175
|
|
|
—
|
|
|
—
|
|
|
3,531,273
|
|
||||||
Total real estate
|
6,444,730
|
|
|
24,294
|
|
|
46,899
|
|
|
227
|
|
|
—
|
|
|
6,516,150
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
1,821,027
|
|
|
9,349
|
|
|
41,319
|
|
|
—
|
|
|
—
|
|
|
1,871,695
|
|
||||||
Agricultural
|
190,445
|
|
|
74
|
|
|
1,403
|
|
|
—
|
|
|
—
|
|
|
191,922
|
|
||||||
Total commercial
|
2,011,472
|
|
|
9,423
|
|
|
42,722
|
|
|
—
|
|
|
—
|
|
|
2,063,617
|
|
||||||
Other
|
287,366
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
287,366
|
|
||||||
Loans acquired
|
3,727,652
|
|
|
56,531
|
|
|
80,009
|
|
|
324
|
|
|
—
|
|
|
3,864,516
|
|
||||||
Total
|
$
|
12,863,999
|
|
|
$
|
90,248
|
|
|
$
|
172,215
|
|
|
$
|
551
|
|
|
$
|
—
|
|
|
$
|
13,127,013
|
|
(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 June 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period (2)
|
$
|
20,578
|
|
|
$
|
32,354
|
|
|
$
|
3,919
|
|
|
$
|
2,392
|
|
|
$
|
59,243
|
|
Provision for loan losses (1)
|
2,956
|
|
|
2,681
|
|
|
800
|
|
|
642
|
|
|
7,079
|
|
|||||
Charge-offs
|
(1,867
|
)
|
|
(271
|
)
|
|
(1,039
|
)
|
|
(905
|
)
|
|
(4,082
|
)
|
|||||
Recoveries
|
72
|
|
|
153
|
|
|
271
|
|
|
331
|
|
|
827
|
|
|||||
Net charge-offs
|
(1,795
|
)
|
|
(118
|
)
|
|
(768
|
)
|
|
(574
|
)
|
|
(3,255
|
)
|
|||||
Balance, June 30, 2019 (2)
|
$
|
21,739
|
|
|
$
|
34,917
|
|
|
$
|
3,951
|
|
|
$
|
2,460
|
|
|
$
|
63,067
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period (2)
|
$
|
20,514
|
|
|
$
|
29,743
|
|
|
$
|
3,923
|
|
|
$
|
2,419
|
|
|
$
|
56,599
|
|
Provision for loan losses (1)
|
4,830
|
|
|
5,524
|
|
|
1,698
|
|
|
1,848
|
|
|
13,900
|
|
|||||
Charge-offs
|
(3,835
|
)
|
|
(645
|
)
|
|
(2,181
|
)
|
|
(2,438
|
)
|
|
(9,099
|
)
|
|||||
Recoveries
|
230
|
|
|
295
|
|
|
511
|
|
|
631
|
|
|
1,667
|
|
|||||
Net charge-offs
|
(3,605
|
)
|
|
(350
|
)
|
|
(1,670
|
)
|
|
(1,807
|
)
|
|
(7,432
|
)
|
|||||
Balance, June 30, 2019 (2)
|
$
|
21,739
|
|
|
$
|
34,917
|
|
|
$
|
3,951
|
|
|
$
|
2,460
|
|
|
$
|
63,067
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Period-end amount allocated to:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans individually evaluated for impairment
|
$
|
5,744
|
|
|
$
|
495
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,239
|
|
Loans collectively evaluated for impairment
|
15,995
|
|
|
34,422
|
|
|
3,951
|
|
|
2,460
|
|
|
56,828
|
|
|||||
Balance, June 30, 2019 (2)
|
$
|
21,739
|
|
|
$
|
34,917
|
|
|
$
|
3,951
|
|
|
$
|
2,460
|
|
|
$
|
63,067
|
|
(In thousands)
|
Commercial
|
|
Real
Estate
|
|
Credit
Card
|
|
Other
Consumer
and Other
|
|
Total
|
||||||||||
Three Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period (4)
|
$
|
9,601
|
|
|
$
|
30,414
|
|
|
$
|
3,799
|
|
|
$
|
3,393
|
|
|
$
|
47,207
|
|
Provision for loan losses (3)
|
6,897
|
|
|
(1,461
|
)
|
|
749
|
|
|
1,079
|
|
|
7,264
|
|
|||||
Charge-offs
|
(790
|
)
|
|
(161
|
)
|
|
(1,012
|
)
|
|
(1,366
|
)
|
|
(3,329
|
)
|
|||||
Recoveries
|
59
|
|
|
112
|
|
|
286
|
|
|
133
|
|
|
590
|
|
|||||
Net charge-offs
|
(731
|
)
|
|
(49
|
)
|
|
(726
|
)
|
|
(1,233
|
)
|
|
(2,739
|
)
|
|||||
Balance, June 30, 2018 (4)
|
$
|
15,767
|
|
|
$
|
28,904
|
|
|
$
|
3,822
|
|
|
$
|
3,239
|
|
|
$
|
51,732
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period (4)
|
$
|
7,007
|
|
|
$
|
27,281
|
|
|
$
|
3,784
|
|
|
$
|
3,596
|
|
|
$
|
41,668
|
|
Provision for loan losses (3)
|
11,183
|
|
|
1,825
|
|
|
1,500
|
|
|
1,838
|
|
|
16,346
|
|
|||||
Charge-offs
|
(2,551
|
)
|
|
(616
|
)
|
|
(2,011
|
)
|
|
(2,422
|
)
|
|
(7,600
|
)
|
|||||
Recoveries
|
128
|
|
|
414
|
|
|
549
|
|
|
227
|
|
|
1,318
|
|
|||||
Net charge-offs
|
(2,423
|
)
|
|
(202
|
)
|
|
(1,462
|
)
|
|
(2,195
|
)
|
|
(6,282
|
)
|
|||||
Balance, June 30, 2018 (4)
|
$
|
15,767
|
|
|
$
|
28,904
|
|
|
$
|
3,822
|
|
|
$
|
3,239
|
|
|
$
|
51,732
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Period-end amount allocated to:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans individually evaluated for impairment
|
$
|
18
|
|
|
$
|
427
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
445
|
|
Loans collectively evaluated for impairment
|
15,749
|
|
|
28,477
|
|
|
3,822
|
|
|
3,239
|
|
|
51,287
|
|
|||||
Balance, June 30, 2018 (4)
|
$
|
15,767
|
|
|
$
|
28,904
|
|
|
$
|
3,822
|
|
|
$
|
3,239
|
|
|
$
|
51,732
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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 (5)
|
$
|
20,514
|
|
|
$
|
29,743
|
|
|
$
|
3,923
|
|
|
$
|
2,419
|
|
|
$
|
56,599
|
|
(In thousands)
|
Commercial
|
|
Real
Estate
|
|
Credit
Card
|
|
Other
Consumer
and Other
|
|
Total
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans individually evaluated for impairment
|
$
|
31,138
|
|
|
$
|
26,058
|
|
|
$
|
326
|
|
|
$
|
1,571
|
|
|
$
|
59,093
|
|
Loans collectively evaluated for impairment
|
2,032,479
|
|
|
6,490,092
|
|
|
187,593
|
|
|
493,240
|
|
|
9,203,404
|
|
|||||
Balance, end of period
|
$
|
2,063,617
|
|
|
$
|
6,516,150
|
|
|
$
|
187,919
|
|
|
$
|
494,811
|
|
|
$
|
9,262,497
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Consumer:
|
|
|
|
|
|
||
Other consumer
|
$
|
9,704
|
|
|
$
|
15,658
|
|
Real estate:
|
|
|
|
||||
Construction
|
426,482
|
|
|
429,605
|
|
||
Single family residential
|
554,534
|
|
|
566,188
|
|
||
Other commercial
|
2,461,136
|
|
|
1,848,679
|
|
||
Total real estate
|
3,442,152
|
|
|
2,844,472
|
|
||
Commercial:
|
|
|
|
||||
Commercial
|
411,577
|
|
|
430,914
|
|
||
Agricultural
|
1,083
|
|
|
1,739
|
|
||
Total commercial
|
412,660
|
|
|
432,653
|
|
||
Total loans acquired (1)
|
$
|
3,864,516
|
|
|
$
|
3,292,783
|
|
(In thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
|
|
|
||||
Consumer:
|
|
|
|
|
|
||
Other consumer
|
$
|
149
|
|
|
$
|
140
|
|
Real estate:
|
|
|
|
||||
Construction
|
8,221
|
|
|
114
|
|
||
Single family residential
|
6,482
|
|
|
6,603
|
|
||
Other commercial
|
8,973
|
|
|
1,167
|
|
||
Total real estate
|
23,676
|
|
|
7,884
|
|
||
Commercial:
|
|
|
|
||||
Commercial
|
7,858
|
|
|
13,578
|
|
||
Agricultural
|
20
|
|
|
38
|
|
||
Total commercial
|
7,878
|
|
|
13,616
|
|
||
Total
|
$
|
31,703
|
|
|
$
|
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
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other consumer
|
$
|
254
|
|
|
$
|
42
|
|
|
$
|
296
|
|
|
$
|
9,408
|
|
|
$
|
9,704
|
|
|
$
|
—
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
4
|
|
|
8,107
|
|
|
8,111
|
|
|
418,371
|
|
|
426,482
|
|
|
—
|
|
||||||
Single family residential
|
5,265
|
|
|
2,547
|
|
|
7,812
|
|
|
546,722
|
|
|
554,534
|
|
|
2
|
|
||||||
Other commercial
|
10,626
|
|
|
8,497
|
|
|
19,123
|
|
|
2,442,013
|
|
|
2,461,136
|
|
|
—
|
|
||||||
Total real estate
|
15,895
|
|
|
19,151
|
|
|
35,046
|
|
|
3,407,106
|
|
|
3,442,152
|
|
|
2
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
338
|
|
|
7,321
|
|
|
7,659
|
|
|
403,918
|
|
|
411,577
|
|
|
—
|
|
||||||
Agricultural
|
—
|
|
|
|
|
|
—
|
|
|
1,083
|
|
|
1,083
|
|
|
—
|
|
||||||
Total commercial
|
338
|
|
|
7,321
|
|
|
7,659
|
|
|
405,001
|
|
|
412,660
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
$
|
16,487
|
|
|
$
|
26,514
|
|
|
$
|
43,001
|
|
|
$
|
3,821,515
|
|
|
$
|
3,864,516
|
|
|
$
|
2
|
|
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
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other consumer
|
$
|
9,532
|
|
|
$
|
—
|
|
|
$
|
172
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,704
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
400,925
|
|
|
17,928
|
|
|
7,629
|
|
|
—
|
|
|
—
|
|
|
426,482
|
|
||||||
Single family residential
|
539,716
|
|
|
1,833
|
|
|
12,661
|
|
|
324
|
|
|
—
|
|
|
554,534
|
|
||||||
Other commercial
|
2,382,022
|
|
|
35,233
|
|
|
43,881
|
|
|
—
|
|
|
—
|
|
|
2,461,136
|
|
||||||
Total real estate
|
3,322,663
|
|
|
54,994
|
|
|
64,171
|
|
|
324
|
|
|
—
|
|
|
3,442,152
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
394,439
|
|
|
1,537
|
|
|
15,601
|
|
|
—
|
|
|
—
|
|
|
411,577
|
|
||||||
Agricultural
|
1,018
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
—
|
|
|
1,083
|
|
||||||
Total commercial
|
395,457
|
|
|
1,537
|
|
|
15,666
|
|
|
—
|
|
|
—
|
|
|
412,660
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
$
|
3,727,652
|
|
|
$
|
56,531
|
|
|
$
|
80,009
|
|
|
$
|
324
|
|
|
$
|
—
|
|
|
$
|
3,864,516
|
|
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
June 30, 2019 |
|
Six Months Ended
June 30, 2019 |
||||||||||||
(In thousands)
|
Accretable
Yield
|
|
Carrying
Amount of
Loans
|
|
Accretable
Yield
|
|
Carrying
Amount of
Loans
|
||||||||
Beginning balance
|
$
|
1,468
|
|
|
$
|
3,651
|
|
|
$
|
1,460
|
|
|
$
|
4,050
|
|
Additions
|
—
|
|
|
175
|
|
|
—
|
|
|
175
|
|
||||
Accretable yield adjustments
|
11
|
|
|
—
|
|
|
28
|
|
|
—
|
|
||||
Accretion
|
(18
|
)
|
|
18
|
|
|
(27
|
)
|
|
27
|
|
||||
Payments and other reductions, net
|
—
|
|
|
(357
|
)
|
|
—
|
|
|
(765
|
)
|
||||
Balance, ending
|
$
|
1,461
|
|
|
$
|
3,487
|
|
|
$
|
1,461
|
|
|
$
|
3,487
|
|
|
Three Months Ended
June 30, 2018 |
|
Six Months Ended
June 30, 2018 |
||||||||||||
(In thousands)
|
Accretable
Yield
|
|
Carrying
Amount of
Loans
|
|
Accretable
Yield
|
|
Carrying
Amount of
Loans
|
||||||||
Beginning balance
|
$
|
1,369
|
|
|
$
|
17,605
|
|
|
$
|
620
|
|
|
$
|
17,116
|
|
Additions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Accretable yield adjustments
|
44
|
|
|
—
|
|
|
1,178
|
|
|
—
|
|
||||
Accretion
|
(31
|
)
|
|
31
|
|
|
(416
|
)
|
|
416
|
|
||||
Payments and other reductions, net
|
—
|
|
|
(3,641
|
)
|
|
—
|
|
|
(3,537
|
)
|
||||
Balance, ending
|
$
|
1,382
|
|
|
$
|
13,995
|
|
|
$
|
1,382
|
|
|
$
|
13,995
|
|
(In thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Goodwill
|
$
|
926,450
|
|
|
$
|
845,687
|
|
Core deposit premiums:
|
|
|
|
||||
Gross carrying amount
|
124,334
|
|
|
105,984
|
|
||
Accumulated amortization
|
(31,236
|
)
|
|
(26,177
|
)
|
||
Core deposit premiums, net
|
93,098
|
|
|
79,807
|
|
||
Books of business intangible:
|
|
|
|
||||
Gross carrying amount
|
15,234
|
|
|
15,234
|
|
||
Accumulated amortization
|
(4,236
|
)
|
|
(3,707
|
)
|
||
Books of business intangible, net
|
10,998
|
|
|
11,527
|
|
||
Other intangible assets, net
|
104,096
|
|
|
91,334
|
|
||
Total goodwill and other intangible assets
|
$
|
1,030,546
|
|
|
$
|
937,021
|
|
(In thousands)
|
Year
|
|
Amortization
Expense
|
||
|
Remainder of 2019
|
|
$
|
5,894
|
|
|
2020
|
|
11,776
|
|
|
|
2021
|
|
11,714
|
|
|
|
2022
|
|
11,662
|
|
|
|
2023
|
|
11,379
|
|
|
|
Thereafter
|
|
51,671
|
|
|
|
Total
|
|
$
|
104,096
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Income taxes currently payable
|
$
|
12,757
|
|
|
$
|
15,652
|
|
|
$
|
23,074
|
|
|
$
|
25,697
|
|
Deferred income taxes
|
2,859
|
|
|
(1,869
|
)
|
|
4,940
|
|
|
2,052
|
|
||||
Provision for income taxes
|
$
|
15,616
|
|
|
$
|
13,783
|
|
|
$
|
28,014
|
|
|
$
|
27,749
|
|
(In thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Deferred tax assets:
|
|
|
|
|
|
||
Loans acquired
|
$
|
17,480
|
|
|
$
|
12,536
|
|
Allowance for loan losses
|
15,744
|
|
|
13,947
|
|
||
Valuation of foreclosed assets
|
2,706
|
|
|
1,474
|
|
||
Tax NOLs from acquisition
|
19,159
|
|
|
7,242
|
|
||
Deferred compensation payable
|
2,492
|
|
|
2,707
|
|
||
Accrued equity and other compensation
|
7,494
|
|
|
8,182
|
|
||
Acquired securities
|
2,598
|
|
|
397
|
|
||
Unrealized loss on available-for-sale securities
|
—
|
|
|
9,196
|
|
||
Other
|
6,916
|
|
|
7,042
|
|
||
Gross deferred tax assets
|
74,589
|
|
|
62,723
|
|
(In thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Goodwill and other intangible amortization
|
$
|
(34,590
|
)
|
|
$
|
(30,471
|
)
|
Accumulated depreciation
|
(12,871
|
)
|
|
(13,361
|
)
|
||
Unrealized gain on available-for-sale securities
|
(4,150
|
)
|
|
—
|
|
||
Other
|
(5,447
|
)
|
|
(5,360
|
)
|
||
Gross deferred tax liabilities
|
(57,058
|
)
|
|
(49,192
|
)
|
||
|
|
|
|
||||
Net deferred tax asset, included in other assets
|
$
|
17,531
|
|
|
$
|
13,531
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Computed at the statutory rate (21%)
|
$
|
14,955
|
|
|
$
|
14,143
|
|
|
$
|
27,575
|
|
|
$
|
27,851
|
|
Increase (decrease) in taxes resulting from:
|
|
|
|
|
|
|
|
||||||||
State income taxes, net of federal tax benefit
|
1,420
|
|
|
1,265
|
|
|
2,765
|
|
|
3,087
|
|
||||
Tax exempt interest income
|
(1,024
|
)
|
|
(782
|
)
|
|
(1,985
|
)
|
|
(1,459
|
)
|
||||
Tax exempt earnings on BOLI
|
(215
|
)
|
|
(190
|
)
|
|
(394
|
)
|
|
(376
|
)
|
||||
Federal tax credits
|
(729
|
)
|
|
—
|
|
|
(1,458
|
)
|
|
—
|
|
||||
Other differences, net
|
1,209
|
|
|
(653
|
)
|
|
1,511
|
|
|
(1,354
|
)
|
||||
Actual tax provision
|
$
|
15,616
|
|
|
$
|
13,783
|
|
|
$
|
28,014
|
|
|
$
|
27,749
|
|
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||||||
(In thousands)
|
Overnight and
Continuous
|
|
Up to 30 Days
|
|
30-90 Days
|
|
Greater than
90 Days
|
|
Total
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase agreements:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government agencies
|
$
|
130,220
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
130,220
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase agreements:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government agencies
|
$
|
95,542
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
95,542
|
|
(In thousands)
|
June 30, 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
|
$
|
1,324,094
|
|
|
$
|
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
|
1,324,094
|
|
|
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
|
(3,190
|
)
|
|
(3,372
|
)
|
||
Total subordinated notes and debentures
|
354,132
|
|
|
353,950
|
|
||
Total other borrowings and subordinated debt
|
$
|
1,678,226
|
|
|
$
|
1,699,400
|
|
(In thousands)
|
Year
|
|
Annual
Maturities
|
||
|
2019
|
|
$
|
973
|
|
|
2020
|
|
2,099
|
|
|
|
2021
|
|
1,801
|
|
|
|
2022
|
|
948
|
|
|
|
2023
|
|
925
|
|
|
|
Thereafter
|
|
361,482
|
|
|
|
Total
|
|
$
|
368,228
|
|
|
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
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
483
|
|
|
26.25
|
|
|||
Stock options exercised
|
(1
|
)
|
|
10.65
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Stock awards/units vested (earned)
|
—
|
|
|
—
|
|
|
(29
|
)
|
|
19.34
|
|
|
(300
|
)
|
|
26.44
|
|
|||
Forfeited/expired
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
21.82
|
|
|
(83
|
)
|
|
28.39
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance, June 30, 2019
|
694
|
|
|
$
|
22.43
|
|
|
41
|
|
|
$
|
22.90
|
|
|
917
|
|
|
$
|
27.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Exercisable, June 30, 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
|
|
2.55
|
|
$9.46
|
|
1
|
|
$9.46
|
10.65
|
|
|
—
|
|
10.65
|
|
|
3
|
|
3.58
|
|
10.65
|
|
3
|
|
10.65
|
||
10.76
|
|
|
—
|
|
10.76
|
|
|
2
|
|
0.55
|
|
10.76
|
|
2
|
|
10.76
|
||
20.29
|
|
|
—
|
|
20.29
|
|
|
71
|
|
5.50
|
|
20.29
|
|
71
|
|
20.29
|
||
20.36
|
|
|
—
|
|
20.36
|
|
|
3
|
|
5.38
|
|
20.36
|
|
3
|
|
20.36
|
||
22.20
|
|
|
—
|
|
22.20
|
|
|
74
|
|
5.73
|
|
22.20
|
|
74
|
|
22.20
|
||
22.75
|
|
|
—
|
|
22.75
|
|
|
436
|
|
6.11
|
|
22.75
|
|
436
|
|
22.75
|
||
23.51
|
|
|
—
|
|
23.51
|
|
|
97
|
|
6.56
|
|
23.51
|
|
97
|
|
23.51
|
||
24.07
|
|
|
—
|
|
24.07
|
|
|
7
|
|
6.21
|
|
24.07
|
|
7
|
|
24.07
|
||
$
|
9.46
|
|
|
—
|
|
$
|
24.07
|
|
|
694
|
|
6.03
|
|
$22.43
|
|
694
|
|
$22.43
|
(In thousands)
|
|
Performance Stock Units
|
|
Non-vested, January 1, 2019
|
|
177
|
|
Granted
|
|
117
|
|
Vested (earned)
|
|
(93
|
)
|
Forfeited
|
|
(3
|
)
|
Non-vested, June 30, 2019
|
|
198
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In thousands, except per share data)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income available to common stockholders
|
$
|
55,598
|
|
|
$
|
53,562
|
|
|
$
|
103,293
|
|
|
$
|
104,874
|
|
|
|
|
|
|
|
|
|
||||||||
Average common shares outstanding
|
96,098
|
|
|
92,264
|
|
|
94,318
|
|
|
92,223
|
|
||||
Average potential dilutive common shares
|
270
|
|
|
469
|
|
|
270
|
|
|
469
|
|
||||
Average diluted common shares
|
96,368
|
|
|
92,733
|
|
|
94,588
|
|
|
92,692
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
0.58
|
|
|
$
|
0.58
|
|
|
$
|
1.10
|
|
|
$
|
1.14
|
|
Diluted earnings per share
|
$
|
0.58
|
|
|
$
|
0.58
|
|
|
$
|
1.09
|
|
|
$
|
1.13
|
|
|
Six Months Ended
June 30, |
||||||
(In thousands)
|
2019
|
|
2018
|
||||
Interest paid
|
$
|
87,841
|
|
|
$
|
47,675
|
|
Income taxes (refunded) paid
|
28,253
|
|
|
13,245
|
|
||
Transfers of loans to foreclosed assets held for sale
|
1,506
|
|
|
6,725
|
|
||
Transfers of premises to foreclosed assets and other real estate owned
|
444
|
|
|
855
|
|
||
Right-of use lease assets obtained in exchange for lessee operating lease liabilities (adoption of ASU 2016-02)
|
32,757
|
|
|
—
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Professional services
|
$
|
3,492
|
|
|
$
|
4,443
|
|
|
$
|
7,815
|
|
|
$
|
8,683
|
|
Postage
|
1,445
|
|
|
1,441
|
|
|
3,171
|
|
|
2,925
|
|
||||
Telephone
|
1,480
|
|
|
2,064
|
|
|
3,099
|
|
|
2,969
|
|
||||
Credit card expense
|
3,762
|
|
|
3,188
|
|
|
7,622
|
|
|
6,416
|
|
||||
Marketing
|
2,436
|
|
|
1,765
|
|
|
5,493
|
|
|
3,407
|
|
||||
Software and technology
|
5,580
|
|
|
3,335
|
|
|
10,076
|
|
|
5,983
|
|
||||
Operating supplies
|
560
|
|
|
583
|
|
|
1,178
|
|
|
1,332
|
|
||||
Amortization of intangibles
|
2,947
|
|
|
2,785
|
|
|
5,588
|
|
|
5,623
|
|
||||
Branch right sizing expense
|
2,887
|
|
|
21
|
|
|
2,932
|
|
|
85
|
|
||||
Other expense
|
8,278
|
|
|
6,560
|
|
|
15,955
|
|
|
14,256
|
|
||||
Total other operating expenses
|
$
|
32,867
|
|
|
$
|
26,185
|
|
|
$
|
62,929
|
|
|
$
|
51,679
|
|
•
|
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)
|
||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government agencies
|
$
|
197,656
|
|
|
$
|
—
|
|
|
$
|
197,656
|
|
|
$
|
—
|
|
Mortgage-backed securities
|
1,345,760
|
|
|
—
|
|
|
1,345,760
|
|
|
—
|
|
||||
State and political subdivisions
|
636,558
|
|
|
—
|
|
|
636,558
|
|
|
—
|
|
||||
Other securities
|
162,413
|
|
|
—
|
|
|
162,413
|
|
|
—
|
|
||||
Derivative asset
|
9,871
|
|
|
—
|
|
|
9,871
|
|
|
—
|
|
||||
Derivative liability
|
(9,884
|
)
|
|
—
|
|
|
(9,884
|
)
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
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)
|
||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans (1) (2) (collateral dependent)
|
$
|
2,866
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,866
|
|
Foreclosed assets and other real estate owned (1)
|
7,202
|
|
|
—
|
|
|
—
|
|
|
7,202
|
|
||||
|
|
|
|
|
|
|
|
||||||||
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
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
655,256
|
|
|
$
|
655,256
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
655,256
|
|
Interest bearing balances due from banks - time
|
5,041
|
|
|
—
|
|
|
5,041
|
|
|
—
|
|
|
5,041
|
|
|||||
Held-to-maturity securities
|
47,455
|
|
|
—
|
|
|
48,640
|
|
|
—
|
|
|
48,640
|
|
|||||
Mortgage loans held for sale
|
34,999
|
|
|
—
|
|
|
—
|
|
|
34,999
|
|
|
34,999
|
|
|||||
Interest receivable
|
54,781
|
|
|
—
|
|
|
54,781
|
|
|
—
|
|
|
54,781
|
|
|||||
Legacy loans, net
|
9,199,430
|
|
|
—
|
|
|
—
|
|
|
9,160,613
|
|
|
9,160,613
|
|
|||||
Loans acquired, net
|
3,864,516
|
|
|
—
|
|
|
—
|
|
|
3,848,210
|
|
|
3,848,210
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest bearing transaction accounts
|
2,954,032
|
|
|
—
|
|
|
2,954,032
|
|
|
—
|
|
|
2,954,032
|
|
|||||
Interest bearing transaction accounts and savings deposits
|
7,258,005
|
|
|
—
|
|
|
7,258,005
|
|
|
—
|
|
|
7,258,005
|
|
|||||
Time deposits
|
3,304,176
|
|
|
—
|
|
|
—
|
|
|
3,295,504
|
|
|
3,295,504
|
|
|||||
Federal funds purchased and securities sold under agreements to repurchase
|
130,470
|
|
|
—
|
|
|
130,470
|
|
|
—
|
|
|
130,470
|
|
|||||
Other borrowings
|
1,324,094
|
|
|
—
|
|
|
1,324,038
|
|
|
—
|
|
|
1,324,038
|
|
|||||
Subordinated notes and debentures
|
354,132
|
|
|
—
|
|
|
364,873
|
|
|
—
|
|
|
364,873
|
|
|||||
Interest payable
|
11,325
|
|
|
—
|
|
|
11,325
|
|
|
—
|
|
|
11,325
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
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
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest income
|
$
|
196,169
|
|
|
$
|
166,268
|
|
|
$
|
375,285
|
|
|
$
|
323,407
|
|
FTE adjustment
|
1,706
|
|
|
1,308
|
|
|
3,307
|
|
|
2,438
|
|
||||
Interest income – FTE
|
197,875
|
|
|
167,576
|
|
|
378,592
|
|
|
325,845
|
|
||||
Interest expense
|
45,813
|
|
|
29,431
|
|
|
87,903
|
|
|
51,604
|
|
||||
Net interest income – FTE
|
$
|
152,062
|
|
|
$
|
138,145
|
|
|
$
|
290,689
|
|
|
$
|
274,241
|
|
|
|
|
|
|
|
|
|
||||||||
Yield on earning assets – FTE
|
5.11
|
%
|
|
4.84
|
%
|
|
5.07
|
%
|
|
4.84
|
%
|
||||
Cost of interest bearing liabilities
|
1.53
|
%
|
|
1.11
|
%
|
|
1.53
|
%
|
|
1.00
|
%
|
||||
Net interest spread – FTE
|
3.58
|
%
|
|
3.73
|
%
|
|
3.54
|
%
|
|
3.84
|
%
|
||||
Net interest margin – FTE
|
3.92
|
%
|
|
3.99
|
%
|
|
3.89
|
%
|
|
4.08
|
%
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||
(In thousands)
|
2019 vs. 2018
|
|
2019 vs. 2018
|
||||
Increase due to change in earning assets
|
$
|
23,694
|
|
|
$
|
38,921
|
|
Increase due to change in earning asset yields
|
6,605
|
|
|
13,826
|
|
||
Decrease due to change in interest bearing liabilities
|
(2,641
|
)
|
|
(7,377
|
)
|
||
Decrease due to change in interest rates paid on interest bearing liabilities
|
(13,741
|
)
|
|
(28,922
|
)
|
||
Increase in net interest income
|
$
|
13,917
|
|
|
$
|
16,448
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||||||||||
|
2019 vs. 2018
|
|
2019 vs. 2018
|
||||||||||||||||||||
(In thousands, on a fully taxable equivalent basis)
|
Volume
|
|
Yield/
Rate
|
|
Total
|
|
Volume
|
|
Yield/
Rate
|
|
Total
|
||||||||||||
Increase (decrease) in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest bearing balances due from banks and federal funds sold
|
$
|
(555
|
)
|
|
$
|
262
|
|
|
$
|
(293
|
)
|
|
$
|
(320
|
)
|
|
$
|
1,172
|
|
|
$
|
852
|
|
Investment securities - taxable
|
273
|
|
|
957
|
|
|
1,230
|
|
|
1,946
|
|
|
2,674
|
|
|
4,620
|
|
||||||
Investment securities - non-taxable
|
1,075
|
|
|
363
|
|
|
1,438
|
|
|
2,325
|
|
|
864
|
|
|
3,189
|
|
||||||
Mortgage loans held for sale
|
35
|
|
|
(8
|
)
|
|
27
|
|
|
69
|
|
|
10
|
|
|
79
|
|
||||||
Loans
|
22,866
|
|
|
5,031
|
|
|
27,897
|
|
|
34,901
|
|
|
9,106
|
|
|
44,007
|
|
||||||
Total
|
23,694
|
|
|
6,605
|
|
|
30,299
|
|
|
38,921
|
|
|
13,826
|
|
|
52,747
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest bearing transaction and savings accounts
|
1,143
|
|
|
6,761
|
|
|
7,904
|
|
|
1,365
|
|
|
14,214
|
|
|
15,579
|
|
||||||
Time deposits
|
2,890
|
|
|
5,541
|
|
|
8,431
|
|
|
5,280
|
|
|
10,629
|
|
|
15,909
|
|
||||||
Federal funds purchased and securities sold under agreements to repurchase
|
25
|
|
|
144
|
|
|
169
|
|
|
14
|
|
|
181
|
|
|
195
|
|
||||||
Other borrowings
|
17
|
|
|
1,061
|
|
|
1,078
|
|
|
(220
|
)
|
|
2,952
|
|
|
2,732
|
|
||||||
Subordinated notes and debentures
|
(1,434
|
)
|
|
234
|
|
|
(1,200
|
)
|
|
938
|
|
|
946
|
|
|
1,884
|
|
||||||
Total
|
2,641
|
|
|
13,741
|
|
|
16,382
|
|
|
7,377
|
|
|
28,922
|
|
|
36,299
|
|
||||||
Increase (decrease) in net interest income
|
$
|
21,053
|
|
|
$
|
(7,136
|
)
|
|
$
|
13,917
|
|
|
$
|
31,544
|
|
|
$
|
(15,096
|
)
|
|
$
|
16,448
|
|
|
Three Months Ended
June 30, |
|
2019
Change from
|
|
Six Months Ended
June 30, |
|
2019
Change from
|
||||||||||||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2018
|
|
2019
|
|
2018
|
|
2018
|
||||||||||||||||||
Trust income
|
$
|
5,794
|
|
|
$
|
5,622
|
|
|
$
|
172
|
|
|
3.1
|
%
|
|
$
|
11,502
|
|
|
$
|
10,871
|
|
|
$
|
631
|
|
|
5.8
|
%
|
Service charges on deposit accounts
|
10,557
|
|
|
10,063
|
|
|
494
|
|
|
4.9
|
|
|
20,625
|
|
|
20,408
|
|
|
217
|
|
|
1.1
|
|
||||||
Other service charges and fees
|
1,312
|
|
|
2,017
|
|
|
(705
|
)
|
|
(35.0
|
)
|
|
2,601
|
|
|
4,767
|
|
|
(2,166
|
)
|
|
(45.4
|
)
|
||||||
Mortgage lending income
|
3,656
|
|
|
2,780
|
|
|
876
|
|
|
31.5
|
|
|
6,479
|
|
|
6,252
|
|
|
227
|
|
|
3.6
|
|
||||||
SBA lending income
|
895
|
|
|
350
|
|
|
545
|
|
|
155.7
|
|
|
1,392
|
|
|
1,323
|
|
|
69
|
|
|
5.2
|
|
||||||
Investment banking income
|
360
|
|
|
814
|
|
|
(454
|
)
|
|
(55.8
|
)
|
|
978
|
|
|
1,648
|
|
|
(670
|
)
|
|
(40.7
|
)
|
||||||
Debit and credit card fees
|
7,212
|
|
|
10,105
|
|
|
(2,893
|
)
|
|
(28.6
|
)
|
|
13,310
|
|
|
18,901
|
|
|
(5,591
|
)
|
|
(29.6
|
)
|
||||||
Bank owned life insurance income
|
1,260
|
|
|
1,102
|
|
|
158
|
|
|
14.3
|
|
|
2,055
|
|
|
2,205
|
|
|
(150
|
)
|
|
(6.8
|
)
|
||||||
Gain (loss) on sale of securities, net
|
2,823
|
|
|
(7
|
)
|
|
2,830
|
|
|
*
|
|
5,563
|
|
|
(1
|
)
|
|
5,564
|
|
|
*
|
||||||||
Gain (loss) on sale of premises held for sale, net
|
—
|
|
|
(4
|
)
|
|
4
|
|
|
100.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other income
|
5,137
|
|
|
5,206
|
|
|
(69
|
)
|
|
(1.3
|
)
|
|
8,262
|
|
|
9,209
|
|
|
(947
|
)
|
|
(10.3
|
)
|
||||||
Total non-interest income
|
$
|
39,006
|
|
|
$
|
38,048
|
|
|
$
|
958
|
|
|
2.5
|
%
|
|
$
|
72,767
|
|
|
$
|
75,583
|
|
|
$
|
(2,816
|
)
|
|
(3.7
|
)%
|
|
Three Months Ended
June 30, |
|
2019
Change from
|
|
Six Months Ended
June 30, |
|
2019
Change from
|
||||||||||||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2018
|
|
2019
|
|
2018
|
|
2018
|
||||||||||||||||||
Salaries and employee benefits
|
$
|
53,196
|
|
|
$
|
55,678
|
|
|
$
|
(2,482
|
)
|
|
(4.5
|
)%
|
|
$
|
109,208
|
|
|
$
|
112,035
|
|
|
$
|
(2,827
|
)
|
|
(2.5
|
)%
|
Early retirement program
|
2,932
|
|
|
—
|
|
|
2,932
|
|
|
*
|
|
3,287
|
|
|
—
|
|
|
3,287
|
|
|
*
|
||||||||
Occupancy expense, net
|
6,919
|
|
|
7,921
|
|
|
(1,002
|
)
|
|
(12.7
|
)
|
|
14,394
|
|
|
14,881
|
|
|
(487
|
)
|
|
(3.3
|
)
|
||||||
Furniture and equipment expense
|
4,206
|
|
|
4,020
|
|
|
186
|
|
|
4.6
|
|
|
7,564
|
|
|
8,423
|
|
|
(859
|
)
|
|
(10.2
|
)
|
||||||
Other real estate and foreclosure expense
|
591
|
|
|
1,382
|
|
|
(791
|
)
|
|
(57.2
|
)
|
|
1,228
|
|
|
2,402
|
|
|
(1,174
|
)
|
|
(48.9
|
)
|
||||||
Deposit insurance
|
2,510
|
|
|
1,856
|
|
|
654
|
|
|
35.2
|
|
|
4,550
|
|
|
3,984
|
|
|
566
|
|
|
14.2
|
|
||||||
Merger related costs
|
7,522
|
|
|
1,465
|
|
|
6,057
|
|
|
*
|
|
8,992
|
|
|
3,176
|
|
|
5,816
|
|
|
183.1
|
|
|||||||
Other operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Professional services
|
3,492
|
|
|
4,443
|
|
|
(951
|
)
|
|
(21.4
|
)
|
|
7,815
|
|
|
8,683
|
|
|
(868
|
)
|
|
(10.0
|
)
|
||||||
Postage
|
1,445
|
|
|
1,441
|
|
|
4
|
|
|
0.3
|
|
|
3,171
|
|
|
2,925
|
|
|
246
|
|
|
8.4
|
|
||||||
Telephone
|
1,480
|
|
|
2,064
|
|
|
(584
|
)
|
|
(28.3
|
)
|
|
3,099
|
|
|
2,969
|
|
|
130
|
|
|
4.4
|
|
||||||
Credit card expenses
|
3,762
|
|
|
3,188
|
|
|
574
|
|
|
18.0
|
|
|
7,622
|
|
|
6,416
|
|
|
1,206
|
|
|
18.8
|
|
||||||
Marketing
|
2,436
|
|
|
1,765
|
|
|
671
|
|
|
38.0
|
|
|
5,493
|
|
|
3,407
|
|
|
2,086
|
|
|
61.2
|
|
||||||
Software and technology
|
5,580
|
|
|
3,335
|
|
|
2,245
|
|
|
67.3
|
|
|
10,076
|
|
|
5,983
|
|
|
4,093
|
|
|
68.4
|
|
||||||
Operating supplies
|
560
|
|
|
583
|
|
|
(23
|
)
|
|
(4.0
|
)
|
|
1,178
|
|
|
1,332
|
|
|
(154
|
)
|
|
(11.6
|
)
|
||||||
Amortization of intangibles
|
2,947
|
|
|
2,785
|
|
|
162
|
|
|
5.8
|
|
|
5,588
|
|
|
5,623
|
|
|
(35
|
)
|
|
(0.6
|
)
|
||||||
Branch right sizing expense
|
2,887
|
|
|
21
|
|
|
2,866
|
|
|
*
|
|
2,932
|
|
|
85
|
|
|
2,847
|
|
|
*
|
||||||||
Other expense
|
8,278
|
|
|
6,560
|
|
|
1,718
|
|
|
26.2
|
|
|
15,955
|
|
|
14,256
|
|
|
1,699
|
|
|
11.9
|
|
||||||
Total non-interest expense
|
$
|
110,743
|
|
|
$
|
98,507
|
|
|
$
|
12,236
|
|
|
12.4
|
%
|
|
$
|
212,152
|
|
|
$
|
196,580
|
|
|
$
|
15,572
|
|
|
7.9
|
%
|
(In thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Consumer:
|
|
|
|
|
|
||
Credit cards
|
$
|
187,919
|
|
|
$
|
204,173
|
|
Other consumer
|
207,445
|
|
|
201,297
|
|
||
Total consumer
|
395,364
|
|
|
405,470
|
|
||
Real estate:
|
|
|
|
||||
Construction
|
1,540,352
|
|
|
1,300,723
|
|
||
Single family residential
|
1,444,525
|
|
|
1,440,443
|
|
||
Other commercial
|
3,531,273
|
|
|
3,225,287
|
|
||
Total real estate
|
6,516,150
|
|
|
5,966,453
|
|
||
Commercial:
|
|
|
|
||||
Commercial
|
1,871,695
|
|
|
1,774,909
|
|
||
Agricultural
|
191,922
|
|
|
164,514
|
|
||
Total commercial
|
2,063,617
|
|
|
1,939,423
|
|
||
Other
|
287,366
|
|
|
119,042
|
|
||
Total loans, excluding loans acquired, before allowance for loan losses
|
$
|
9,262,497
|
|
|
$
|
8,430,388
|
|
(In thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Consumer:
|
|
|
|
|
|
||
Other consumer
|
$
|
9,704
|
|
|
$
|
15,658
|
|
Real estate:
|
|
|
|
||||
Construction
|
426,482
|
|
|
429,605
|
|
||
Single family residential
|
554,534
|
|
|
566,188
|
|
||
Other commercial
|
2,461,136
|
|
|
1,848,679
|
|
||
Total real estate
|
3,442,152
|
|
|
2,844,472
|
|
||
Commercial:
|
|
|
|
||||
Commercial
|
411,577
|
|
|
430,914
|
|
||
Agricultural
|
1,083
|
|
|
1,739
|
|
||
Total commercial
|
412,660
|
|
|
432,653
|
|
||
Total loans acquired (1)
|
$
|
3,864,516
|
|
|
$
|
3,292,783
|
|
(Dollars in thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Nonaccrual loans (1)
|
$
|
61,956
|
|
|
$
|
34,201
|
|
Loans past due 90 days or more (principal or interest payments)
|
267
|
|
|
224
|
|
||
Total non-performing loans
|
62,223
|
|
|
34,425
|
|
||
Other non-performing assets:
|
|
|
|
||||
Foreclosed assets held for sale
|
24,761
|
|
|
25,565
|
|
||
Other non-performing assets
|
613
|
|
|
553
|
|
||
Total other non-performing assets
|
25,374
|
|
|
26,118
|
|
||
Total non-performing assets
|
$
|
87,597
|
|
|
$
|
60,543
|
|
|
|
|
|
||||
Performing TDRs
|
$
|
6,246
|
|
|
$
|
6,369
|
|
Allowance for loan losses to non-performing loans
|
101
|
%
|
|
164
|
%
|
||
Non-performing loans to total loans
|
0.67
|
%
|
|
0.41
|
%
|
||
Non-performing assets (including performing TDRs) to total assets (2)
|
0.52
|
%
|
|
0.40
|
%
|
||
Non-performing assets to total assets (2)
|
0.49
|
%
|
|
0.37
|
%
|
(1)
|
Includes nonaccrual TDRs of approximately $2.3 million at June 30, 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
|
2,181
|
|
|
2,011
|
|
||
Other consumer
|
2,438
|
|
|
2,422
|
|
||
Real estate
|
645
|
|
|
616
|
|
||
Commercial
|
3,835
|
|
|
2,551
|
|
||
Total loans charged off
|
9,099
|
|
|
7,600
|
|
||
Recoveries of loans previously charged off:
|
|
|
|
||||
Credit card
|
511
|
|
|
549
|
|
||
Other consumer
|
631
|
|
|
227
|
|
||
Real estate
|
295
|
|
|
414
|
|
||
Commercial
|
230
|
|
|
128
|
|
||
Total recoveries
|
1,667
|
|
|
1,318
|
|
||
Net loans charged off
|
7,432
|
|
|
6,282
|
|
||
Provision for loan losses (1)
|
13,900
|
|
|
16,346
|
|
||
Balance, June 30 (3)
|
$
|
63,067
|
|
|
$
|
51,732
|
|
|
|
|
|
||||
Loans charged off:
|
|
|
|
||||
Credit card
|
|
|
2,040
|
|
|||
Other consumer
|
|
|
4,215
|
|
|||
Real estate
|
|
|
5,289
|
|
|||
Commercial
|
|
|
4,072
|
|
|||
Total loans charged off
|
|
|
15,616
|
|
|||
Recoveries of loans previously charged off:
|
|
|
|
||||
Credit card
|
|
|
456
|
|
|||
Other consumer
|
|
|
330
|
|
|||
Real estate
|
|
|
577
|
|
|||
Commercial
|
|
|
617
|
|
|||
Total recoveries
|
|
|
1,980
|
|
|||
Net loans charged off
|
|
|
13,636
|
|
|||
Provision for loan losses (2)
|
|
|
18,503
|
|
|||
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 $16,364,000) and $1,837,000 was excluded from this table for 2018 (total year-to-date 2018 provision for loan losses was $18,183,000). Charge offs of $2,347,000 on loans acquired were excluded from this table for 2019 and $211,000 for 2018. Additionally, recoveries of $900,000 on loans acquired were excluded from this table for 2019.
|
(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 June 30, 2019 includes $1,112,000 allowance for loans acquired (not shown in the table above). Allowance for loan losses at December 31, 2018 and June 30, 2018 includes $95,000 and $2,044,000, respectively, of allowance for loans acquired (not shown in the table above). The total allowance for loan losses at June 30, 2019 was $64,179,000 and total allowance for loan losses at December 31, 2018 and June 30, 2018 was $56,694,000 and $53,776,000, respectively.
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||
(Dollars in thousands)
|
Allowance
Amount
|
|
% of
loans (1)
|
|
Allowance
Amount
|
|
% of
loans (1)
|
||||||
Credit cards
|
$
|
3,951
|
|
|
2.0
|
%
|
|
$
|
3,923
|
|
|
2.4
|
%
|
Other consumer
|
2,348
|
|
|
2.2
|
%
|
|
2,380
|
|
|
2.4
|
%
|
||
Real estate
|
34,917
|
|
|
70.4
|
%
|
|
29,743
|
|
|
70.8
|
%
|
||
Commercial
|
21,739
|
|
|
22.3
|
%
|
|
20,514
|
|
|
23.0
|
%
|
||
Other
|
112
|
|
|
3.1
|
%
|
|
39
|
|
|
1.4
|
%
|
||
Total (2)
|
$
|
63,067
|
|
|
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 June 30, 2019 and December 31, 2018 includes $1,112,000 and $95,000, respectively, allowance for loans acquired (not shown in the table above). The total allowance for loan losses at June 30, 2019 and December 31, 2018 was $64,179,000 and $56,694,000, respectively.
|
(Dollars in thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Tier 1 capital:
|
|
|
|
|
|
||
Stockholders’ equity
|
$
|
2,469,513
|
|
|
$
|
2,246,434
|
|
Goodwill and other intangible assets
|
(1,001,676
|
)
|
|
(912,428
|
)
|
||
Unrealized (gain) loss on available-for-sale securities, net of income taxes
|
(15,316
|
)
|
|
27,374
|
|
||
Total Tier 1 capital
|
1,452,521
|
|
|
1,361,380
|
|
||
Tier 2 capital:
|
|
|
|
||||
Trust preferred securities and subordinated debt
|
354,132
|
|
|
353,950
|
|
||
Qualifying allowance for loan losses
|
72,044
|
|
|
63,608
|
|
||
Total Tier 2 capital
|
426,176
|
|
|
417,558
|
|
||
Total risk-based capital
|
$
|
1,878,697
|
|
|
$
|
1,778,938
|
|
|
|
|
|
||||
Risk weighted assets
|
$
|
14,825,253
|
|
|
$
|
13,326,832
|
|
|
|
|
|
||||
Assets for leverage ratio
|
$
|
16,382,520
|
|
|
$
|
15,512,042
|
|
|
|
|
|
||||
Ratios at end of period:
|
|
|
|
||||
Common equity Tier 1 ratio (CET1)
|
9.80
|
%
|
|
10.22
|
%
|
||
Tier 1 leverage ratio
|
8.87
|
%
|
|
8.78
|
%
|
||
Tier 1 risk-based capital ratio
|
9.80
|
%
|
|
10.22
|
%
|
||
Total risk-based capital ratio
|
12.67
|
%
|
|
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
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income available to common stockholders
|
$
|
55,598
|
|
|
$
|
53,562
|
|
|
$
|
103,293
|
|
|
$
|
104,874
|
|
Non-core items:
|
|
|
|
|
|
|
|
||||||||
Merger related costs
|
7,522
|
|
|
1,465
|
|
|
8,992
|
|
|
3,176
|
|
||||
Early retirement program
|
2,932
|
|
|
—
|
|
|
3,287
|
|
|
—
|
|
||||
Branch right sizing
|
2,887
|
|
|
22
|
|
|
2,932
|
|
|
79
|
|
||||
Tax effect (1)
|
(3,486
|
)
|
|
(389
|
)
|
|
(3,975
|
)
|
|
(851
|
)
|
||||
Net non-core items
|
9,855
|
|
|
1,098
|
|
|
11,236
|
|
|
2,404
|
|
||||
Core earnings (non-GAAP)
|
$
|
65,453
|
|
|
$
|
54,660
|
|
|
$
|
114,529
|
|
|
$
|
107,278
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share
|
$
|
0.58
|
|
|
$
|
0.58
|
|
|
$
|
1.09
|
|
|
$
|
1.13
|
|
Non-core items:
|
|
|
|
|
|
|
|
||||||||
Merger related costs
|
0.08
|
|
|
0.02
|
|
|
0.10
|
|
|
0.04
|
|
||||
Early retirement program
|
0.03
|
|
|
—
|
|
|
0.03
|
|
—
|
|
|||||
Branch right sizing
|
0.03
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
||||
Tax effect (1)
|
(0.04
|
)
|
|
(0.01
|
)
|
|
(0.04
|
)
|
|
(0.01
|
)
|
||||
Net non-core items
|
0.10
|
|
|
0.01
|
|
|
0.12
|
|
|
0.03
|
|
||||
Diluted core earnings per share (non-GAAP)
|
$
|
0.68
|
|
|
$
|
0.59
|
|
|
$
|
1.21
|
|
|
$
|
1.16
|
|
(1)
|
Effective tax rate of 26.135%.
|
(In thousands, except per share data)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Total common stockholders’ equity
|
$
|
2,469,513
|
|
|
$
|
2,246,434
|
|
Intangible assets:
|
|
|
|
||||
Goodwill
|
(926,450
|
)
|
|
(845,687
|
)
|
||
Other intangible assets
|
(104,096
|
)
|
|
(91,334
|
)
|
||
Total intangibles
|
(1,030,546
|
)
|
|
(937,021
|
)
|
||
Tangible common stockholders’ equity
|
$
|
1,438,967
|
|
|
$
|
1,309,413
|
|
Shares of common stock outstanding
|
96,590,656
|
|
|
92,347,643
|
|
||
|
|
|
|
||||
Book value per common share
|
$
|
25.57
|
|
|
$
|
24.33
|
|
|
|
|
|
||||
Tangible book value per common share (non-GAAP)
|
$
|
14.90
|
|
|
$
|
14.18
|
|
(In thousands, except per share data)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Total common stockholders’ equity
|
$
|
2,469,513
|
|
|
$
|
2,246,434
|
|
Intangible assets:
|
|
|
|
||||
Goodwill
|
(926,450
|
)
|
|
(845,687
|
)
|
||
Other intangible assets
|
(104,096
|
)
|
|
(91,334
|
)
|
||
Total intangibles
|
(1,030,546
|
)
|
|
(937,021
|
)
|
||
Tangible common stockholders’ equity
|
$
|
1,438,967
|
|
|
$
|
1,309,413
|
|
|
|
|
|
||||
Total assets
|
$
|
17,937,435
|
|
|
$
|
16,543,337
|
|
Intangible assets:
|
|
|
|
||||
Goodwill
|
(926,450
|
)
|
|
(845,687
|
)
|
||
Other intangible assets
|
(104,096
|
)
|
|
(91,334
|
)
|
||
Total intangibles
|
(1,030,546
|
)
|
|
(937,021
|
)
|
||
Tangible assets
|
$
|
16,906,889
|
|
|
$
|
15,606,316
|
|
|
|
|
|
||||
Ratio of common equity to assets
|
13.77
|
%
|
|
13.58
|
%
|
||
Ratio of tangible common equity to tangible assets (non-GAAP)
|
8.51
|
%
|
|
8.39
|
%
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net interest income
|
$
|
150,356
|
|
|
$
|
136,837
|
|
|
$
|
287,382
|
|
|
$
|
271,803
|
|
FTE adjustment
|
1,706
|
|
|
1,308
|
|
|
3,307
|
|
|
2,438
|
|
||||
Fully tax equivalent net interest income
|
152,062
|
|
|
138,145
|
|
|
290,689
|
|
|
274,241
|
|
||||
Total accretable yield
|
(10,162
|
)
|
|
(10,113
|
)
|
|
(16,822
|
)
|
|
(21,404
|
)
|
||||
Core net interest income
|
$
|
141,900
|
|
|
$
|
128,032
|
|
|
$
|
273,867
|
|
|
$
|
252,837
|
|
|
|
|
|
|
|
|
|
||||||||
Average earning assets – quarter-to-date
|
$
|
15,540,371
|
|
|
$
|
13,876,557
|
|
|
$
|
15,069,751
|
|
|
$
|
13,564,056
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest margin
|
3.92
|
%
|
|
3.99
|
%
|
|
3.89
|
%
|
|
4.08
|
%
|
||||
Core net interest margin (non-GAAP)
|
3.66
|
%
|
|
3.70
|
%
|
|
3.66
|
%
|
|
3.76
|
%
|
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:
|
August 7, 2019
|
/s/ George A. Makris, Jr.
|
|
|
George A. Makris, Jr.
|
|
|
Chairman and Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
Date:
|
August 7, 2019
|
/s/ Robert A. Fehlman
|
|
|
Robert A. Fehlman
|
|
|
Senior Executive Vice President,
|
|
|
Chief Financial Officer and Treasurer
|
|
|
|
|
|
|
|
|
|
Date:
|
August 7, 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
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Robert A. Fehlman
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Senior Executive Vice President,
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Chief Financial Officer and Treasurer
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/s/ David W. Garner
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David W. Garner
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Executive Vice President, Controller
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and Chief Accounting Officer
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