QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the Transition Period from ___________ to ___________ | ||||
Georgia | 58-1807304 | |
(State of | (I.R.S. Employer Identification No.) |
125 Highway 515 East | ||||
Blairsville | , | Georgia | 30512 | |
(Address of | (Zip |
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of Each Class | Name of Each Exchange on Which Registered | |
Common stock, par value $1 per share | UCBI | Nasdaq Global Select Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |
Emerging growth company | ☐ |
Item 1. | Financial Statements. | ||
UNITED COMMUNITY BANKS, INC. Consolidated Statements of Income (Unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
(in thousands, except per share data) | 2019 | 2018 | ||||||
Interest revenue: | ||||||||
Loans, including fees | $ | 115,259 | $ | 96,469 | ||||
Investment securities, including tax exempt of $1,169 and $972 | 20,818 | 18,295 | ||||||
Deposits in banks and short-term investments | 439 | 526 | ||||||
Total interest revenue | 136,516 | 115,290 | ||||||
Interest expense: | ||||||||
Deposits: | ||||||||
NOW and interest-bearing demand | 3,536 | 1,113 | ||||||
Money market | 4,205 | 2,175 | ||||||
Savings | 32 | 49 | ||||||
Time | 8,184 | 2,956 | ||||||
Total deposit interest expense | 15,957 | 6,293 | ||||||
Short-term borrowings | 161 | 300 | ||||||
Federal Home Loan Bank advances | 1,422 | 2,124 | ||||||
Long-term debt | 3,342 | 3,288 | ||||||
Total interest expense | 20,882 | 12,005 | ||||||
Net interest revenue | 115,634 | 103,285 | ||||||
Provision for credit losses | 3,300 | 3,800 | ||||||
Net interest revenue after provision for credit losses | 112,334 | 99,485 | ||||||
Noninterest income: | ||||||||
Service charges and fees | 8,453 | 8,925 | ||||||
Mortgage loan and other related fees | 3,748 | 5,359 | ||||||
Brokerage fees | 1,337 | 872 | ||||||
Gains from sales of SBA/USDA loans | 1,303 | 1,778 | ||||||
Securities losses, net | (267 | ) | (940 | ) | ||||
Other | 6,394 | 6,402 | ||||||
Total noninterest income | 20,968 | 22,396 | ||||||
Total revenue | 133,302 | 121,881 | ||||||
Noninterest expenses: | ||||||||
Salaries and employee benefits | 47,503 | 42,875 | ||||||
Communications and equipment | 5,788 | 4,632 | ||||||
Occupancy | 5,584 | 5,613 | ||||||
Advertising and public relations | 1,286 | 1,515 | ||||||
Postage, printing and supplies | 1,586 | 1,637 | ||||||
Professional fees | 3,161 | 4,044 | ||||||
FDIC assessments and other regulatory charges | 1,710 | 2,476 | ||||||
Amortization of intangibles | 1,293 | 1,898 | ||||||
Merger-related and other charges | 546 | 2,054 | ||||||
Other | 7,627 | 6,731 | ||||||
Total noninterest expenses | 76,084 | 73,475 | ||||||
Net income before income taxes | 57,218 | 48,406 | ||||||
Income tax expense | 12,956 | 10,748 | ||||||
Net income | $ | 44,262 | $ | 37,658 | ||||
Net income available to common shareholders | $ | 43,947 | $ | 37,381 | ||||
Earnings per common share: | ||||||||
Basic | $ | 0.55 | $ | 0.47 | ||||
Diluted | 0.55 | 0.47 | ||||||
Weighted average common shares outstanding: | ||||||||
Basic | 79,807 | 79,205 | ||||||
Diluted | 79,813 | 79,215 |
UNITED COMMUNITY BANKS, INC. Consolidated Statements of Comprehensive Income (Unaudited) | ||||||||||||
(in thousands) | Three Months Ended March 31, | |||||||||||
Before-tax Amount | Tax (Expense) Benefit | Net of Tax Amount | ||||||||||
2019 | ||||||||||||
Net income | $ | 57,218 | $ | (12,956 | ) | $ | 44,262 | |||||
Other comprehensive income: | ||||||||||||
Unrealized gains on available-for-sale securities: | ||||||||||||
Unrealized holding gains arising during period | 33,174 | (8,049 | ) | 25,125 | ||||||||
Reclassification adjustment for losses included in net income | 267 | (68 | ) | 199 | ||||||||
Net unrealized gains | 33,441 | (8,117 | ) | 25,324 | ||||||||
Amortization of losses included in net income on available-for-sale securities transferred to held-to-maturity | 84 | (20 | ) | 64 | ||||||||
Amortization of losses included in net income on terminated derivative financial instruments that were previously accounted for as cash flow hedges | 102 | (26 | ) | 76 | ||||||||
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan | 174 | (44 | ) | 130 | ||||||||
Total other comprehensive income | 33,801 | (8,207 | ) | 25,594 | ||||||||
Comprehensive income | $ | 91,019 | $ | (21,163 | ) | $ | 69,856 | |||||
2018 | ||||||||||||
Net income | $ | 48,406 | $ | (10,748 | ) | $ | 37,658 | |||||
Other comprehensive loss: | ||||||||||||
Unrealized losses on available-for-sale securities: | ||||||||||||
Unrealized holding losses arising during period | (29,265 | ) | 7,155 | (22,110 | ) | |||||||
Reclassification adjustment for losses included in net income | 940 | (221 | ) | 719 | ||||||||
Net unrealized losses | (28,325 | ) | 6,934 | (21,391 | ) | |||||||
Amortization of losses included in net income on available-for-sale securities transferred to held-to-maturity | 222 | (54 | ) | 168 | ||||||||
Amortization of losses included in net income on terminated derivative financial instruments that were previously accounted for as cash flow hedges | 147 | (38 | ) | 109 | ||||||||
Defined benefit pension plan activity: | ||||||||||||
Net actuarial loss on defined benefit pension plan | (5 | ) | 1 | (4 | ) | |||||||
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan | 227 | (58 | ) | 169 | ||||||||
Net defined benefit pension plan activity | 222 | (57 | ) | 165 | ||||||||
Total other comprehensive loss | (27,734 | ) | 6,785 | (20,949 | ) | |||||||
Comprehensive income | $ | 20,672 | $ | (3,963 | ) | $ | 16,709 |
UNITED COMMUNITY BANKS, INC. Consolidated Balance Sheets (Unaudited) | UNITED COMMUNITY BANKS, INC. Consolidated Balance Sheets (Unaudited) | UNITED COMMUNITY BANKS, INC. Consolidated Balance Sheets (Unaudited) | ||||||||||||||
March 31, 2019 | December 31, 2018 | |||||||||||||||
(in thousands, except share data) | March 31, 2020 | December 31, 2019 | ||||||||||||||
ASSETS | ||||||||||||||||
Cash and due from banks | $ | 118,659 | $ | 126,083 | $ | 155,008 | $ | 125,844 | ||||||||
Interest-bearing deposits in banks (includes restricted cash of $6.43 million and $6.70 million) | 206,836 | 201,182 | ||||||||||||||
Interest-bearing deposits in banks | 365,494 | 389,362 | ||||||||||||||
Cash and cash equivalents | 325,495 | 327,265 | 520,502 | 515,206 | ||||||||||||
Debt securities available for sale | 2,454,625 | 2,628,467 | ||||||||||||||
Debt securities held to maturity (fair value $265,117 and $268,803) | 265,329 | 274,407 | ||||||||||||||
Debt securities available-for-sale | 2,249,876 | 2,274,581 | ||||||||||||||
Debt securities held-to-maturity (fair value $301,595 and $287,904) | 290,404 | 283,533 | ||||||||||||||
Loans held for sale at fair value | 26,341 | 18,935 | 89,959 | 58,484 | ||||||||||||
Loans and leases, net of unearned income | 8,493,254 | 8,383,401 | ||||||||||||||
Less allowance for loan and lease losses | (61,642 | ) | (61,203 | ) | ||||||||||||
Loans and leases held for investment | 8,935,424 | 8,812,553 | ||||||||||||||
Less allowance for credit losses - loans and leases | (81,905 | ) | (62,089 | ) | ||||||||||||
Loans and leases, net | 8,431,612 | 8,322,198 | 8,853,519 | 8,750,464 | ||||||||||||
Premises and equipment, net | 214,022 | 206,140 | 214,744 | 215,976 | ||||||||||||
Bank owned life insurance | 193,489 | 192,616 | 200,778 | 202,664 | ||||||||||||
Accrued interest receivable | 35,126 | 35,413 | 31,570 | 32,660 | ||||||||||||
Net deferred tax asset | 51,055 | 64,224 | 30,715 | 34,059 | ||||||||||||
Derivative financial instruments | 25,924 | 24,705 | 82,668 | 35,007 | ||||||||||||
Goodwill and other intangible assets | 322,779 | 324,072 | ||||||||||||||
Goodwill and other intangible assets, net | 341,207 | 342,247 | ||||||||||||||
Other assets | 160,030 | 154,750 | 179,924 | 171,135 | ||||||||||||
Total assets | $ | 12,505,827 | $ | 12,573,192 | $ | 13,085,866 | $ | 12,916,016 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Liabilities: | ||||||||||||||||
Deposits: | ||||||||||||||||
Noninterest-bearing demand | $ | 3,313,861 | $ | 3,210,220 | $ | 3,624,806 | $ | 3,477,979 | ||||||||
NOW and interest-bearing demand | 2,205,117 | 2,274,775 | ||||||||||||||
Money market | 2,106,045 | 2,097,526 | ||||||||||||||
Savings | 681,739 | 669,886 | ||||||||||||||
Time | 1,668,563 | 1,598,391 | ||||||||||||||
Brokered | 558,981 | 683,715 | ||||||||||||||
Interest-bearing deposits | 7,410,120 | 7,419,265 | ||||||||||||||
Total deposits | 10,534,306 | 10,534,513 | 11,034,926 | 10,897,244 | ||||||||||||
Federal Home Loan Bank advances | 40,000 | 160,000 | ||||||||||||||
Long-term debt | 257,259 | 267,189 | 212,849 | 212,664 | ||||||||||||
Derivative financial instruments | 18,789 | 26,433 | 27,349 | 15,516 | ||||||||||||
Accrued expenses and other liabilities | 147,315 | 127,503 | 170,130 | 154,900 | ||||||||||||
Total liabilities | 10,997,669 | 11,115,638 | 11,445,254 | 11,280,324 | ||||||||||||
Shareholders' equity: | ||||||||||||||||
Common stock, $1 par value; 150,000,000 shares authorized; 79,035,459 and 79,234,077 shares issued and outstanding | 79,035 | 79,234 | ||||||||||||||
Common stock issuable; 621,491 and 674,499 shares | 10,291 | 10,744 | ||||||||||||||
Common stock, $1 par value; 150,000,000 shares authorized; 78,283,544 and 79,013,729 shares issued and outstanding | 78,284 | 79,014 | ||||||||||||||
Common stock issuable; 591,053 and 664,640 shares | 10,534 | 11,491 | ||||||||||||||
Capital surplus | 1,494,400 | 1,499,584 | 1,478,719 | 1,496,641 | ||||||||||||
Accumulated deficit | (59,573 | ) | (90,419 | ) | ||||||||||||
Accumulated other comprehensive loss | (15,995 | ) | (41,589 | ) | ||||||||||||
Retained earnings | 54,206 | 40,152 | ||||||||||||||
Accumulated other comprehensive income | 18,869 | 8,394 | ||||||||||||||
Total shareholders' equity | 1,508,158 | 1,457,554 | 1,640,612 | 1,635,692 | ||||||||||||
Total liabilities and shareholders' equity | $ | 12,505,827 | $ | 12,573,192 | $ | 13,085,866 | $ | 12,916,016 |
UNITED COMMUNITY BANKS, INC. Consolidated Statement of Changes in Shareholders’ Equity (Unaudited) For the Three Months Ended March 31, | ||||||||||||||||||||||||
(in thousands, except share and per share data) | Common Stock | Common Stock Issuable | Capital Surplus | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||
Balance, December 31, 2017 | $ | 77,580 | $ | 9,083 | $ | 1,451,814 | $ | (209,902 | ) | $ | (25,241 | ) | $ | 1,303,334 | ||||||||||
Net income | 37,658 | 37,658 | ||||||||||||||||||||||
Other comprehensive loss | (20,949 | ) | (20,949 | ) | ||||||||||||||||||||
Common stock issued to dividend reinvestment plan and employee benefit plans (5,204 shares) | 5 | 139 | 144 | |||||||||||||||||||||
Common stock issued for acquisition (1,443,987 shares) | 1,444 | 44,302 | 45,746 | |||||||||||||||||||||
Amortization of stock option and restricted stock awards | 1,148 | 1,148 | ||||||||||||||||||||||
Vesting of restricted stock and exercise of stock options, net of shares surrendered to cover payroll taxes (48,310 shares issued, 46,074 shares deferred) | 48 | 850 | (1,725 | ) | (827 | ) | ||||||||||||||||||
Deferred compensation plan, net, including dividend equivalents | 143 | 143 | ||||||||||||||||||||||
Shares issued from deferred compensation plan, net of shares surrendered to cover payroll taxes (45,558 shares) | 46 | (684 | ) | 629 | (9 | ) | ||||||||||||||||||
Common stock dividends ($0.12 per share) | (9,633 | ) | (9,633 | ) | ||||||||||||||||||||
Balance, March 31, 2018 | $ | 79,123 | $ | 9,392 | $ | 1,496,307 | $ | (181,877 | ) | $ | (46,190 | ) | $ | 1,356,755 | ||||||||||
Balance, December 31, 2018 | $ | 79,234 | $ | 10,744 | $ | 1,499,584 | $ | (90,419 | ) | $ | (41,589 | ) | $ | 1,457,554 | ||||||||||
Net income | 44,262 | 44,262 | ||||||||||||||||||||||
Other comprehensive income | 25,594 | 25,594 | ||||||||||||||||||||||
Exercise of stock options (12,000 shares) | 12 | 185 | 197 | |||||||||||||||||||||
Common stock issued to dividend reinvestment plan and employee benefit plans (8,445 shares) | 8 | 178 | 186 | |||||||||||||||||||||
Amortization of restricted stock awards | 1,985 | 1,985 | ||||||||||||||||||||||
Vesting of restricted stock, net of shares surrendered to cover payroll taxes (15,945 shares issued, 19,450 shares deferred) | 16 | 532 | (865 | ) | (317 | ) | ||||||||||||||||||
Purchases of common stock (305,052 shares) | (305 | ) | (7,535 | ) | (7,840 | ) | ||||||||||||||||||
Deferred compensation plan, net, including dividend equivalents | 185 | 185 | ||||||||||||||||||||||
Shares issued from deferred compensation plan, net of shares surrendered to cover payroll taxes (70,044 shares) | 70 | (1,170 | ) | 868 | (232 | ) | ||||||||||||||||||
Common stock dividends ($0.16 per share) | (12,867 | ) | (12,867 | ) | ||||||||||||||||||||
Adoption of new accounting standard | (549 | ) | (549 | ) | ||||||||||||||||||||
Balance, March 31, 2019 | $ | 79,035 | $ | 10,291 | $ | 1,494,400 | $ | (59,573 | ) | $ | (15,995 | ) | $ | 1,508,158 |
UNITED COMMUNITY BANKS, INC. Consolidated Statements of Income (Unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
(in thousands, except per share data) | 2020 | 2019 | ||||||
Interest revenue: | ||||||||
Loans, including fees | $ | 118,063 | $ | 115,259 | ||||
Investment securities, including tax exempt of $1,523 and $1,169 | 17,394 | 20,818 | ||||||
Deposits in banks and short-term investments | 1,090 | 439 | ||||||
Total interest revenue | 136,547 | 136,516 | ||||||
Interest expense: | ||||||||
Deposits | 15,075 | 15,957 | ||||||
Short-term borrowings | 1 | 161 | ||||||
Federal Home Loan Bank advances | 1 | 1,422 | ||||||
Long-term debt | 2,864 | 3,342 | ||||||
Total interest expense | 17,941 | 20,882 | ||||||
Net interest revenue | 118,606 | 115,634 | ||||||
Provision for credit losses | 22,191 | 3,300 | ||||||
Net interest revenue after provision for credit losses | 96,415 | 112,334 | ||||||
Noninterest income: | ||||||||
Service charges and fees | 8,638 | 8,453 | ||||||
Mortgage loan gains and other related fees | 8,310 | 3,748 | ||||||
Brokerage fees | 1,640 | 1,337 | ||||||
Gains from sales of other loans, net | 1,674 | 1,303 | ||||||
Securities losses, net | — | (267 | ) | |||||
Other | 5,552 | 6,394 | ||||||
Total noninterest income | 25,814 | 20,968 | ||||||
Total revenue | 122,229 | 133,302 | ||||||
Noninterest expenses: | ||||||||
Salaries and employee benefits | 51,358 | 47,503 | ||||||
Communications and equipment | 5,946 | 5,788 | ||||||
Occupancy | 5,714 | 5,584 | ||||||
Advertising and public relations | 1,274 | 1,286 | ||||||
Postage, printing and supplies | 1,670 | 1,586 | ||||||
Professional fees | 4,097 | 3,161 | ||||||
Lending and loan servicing expense | 2,293 | 2,334 | ||||||
Outside services - electronic banking | 1,832 | 1,609 | ||||||
FDIC assessments and other regulatory charges | 1,484 | 1,710 | ||||||
Amortization of intangibles | 1,040 | 1,293 | ||||||
Merger-related and other charges | 808 | 546 | ||||||
Other | 4,022 | 3,684 | ||||||
Total noninterest expenses | 81,538 | 76,084 | ||||||
Net income before income taxes | 40,691 | 57,218 | ||||||
Income tax expense | 8,807 | 12,956 | ||||||
Net income | $ | 31,884 | $ | 44,262 | ||||
Net income available to common shareholders | $ | 31,641 | $ | 43,947 | ||||
Net income per common share: | ||||||||
Basic | $ | 0.40 | $ | 0.55 | ||||
Diluted | 0.40 | 0.55 | ||||||
Weighted average common shares outstanding: | ||||||||
Basic | 79,340 | 79,807 | ||||||
Diluted | 79,446 | 79,813 |
UNITED COMMUNITY BANKS, INC. Consolidated Statements of Cash Flows (Unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
Operating activities: | ||||||||
Net income | $ | 44,262 | $ | 37,658 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation, amortization and accretion | 6,373 | 10,487 | ||||||
Provision for credit losses | 3,300 | 3,800 | ||||||
Stock based compensation | 1,985 | 1,148 | ||||||
Deferred income tax expense | 658 | 10,225 | ||||||
Securities losses, net | 267 | 940 | ||||||
Gains from sales of SBA/USDA loans | (1,303 | ) | (1,778 | ) | ||||
Net (gains) losses and write downs on sales of other real estate owned | (45 | ) | 188 | |||||
Changes in assets and liabilities: | ||||||||
Other assets and accrued interest receivable | (6,206 | ) | (385 | ) | ||||
Accrued expenses and other liabilities | (5,994 | ) | 1,371 | |||||
Loans held for sale | (7,406 | ) | 8,833 | |||||
Net cash provided by operating activities | 35,891 | 72,487 | ||||||
Investing activities: | ||||||||
Debt securities held to maturity: | ||||||||
Proceeds from maturities and calls of securities held to maturity | 9,049 | 13,832 | ||||||
Purchases of securities held to maturity | — | (4,781 | ) | |||||
Debt securities available for sale and equity securities: | ||||||||
Proceeds from sales of securities available for sale | 178,604 | 113,961 | ||||||
Proceeds from maturities and calls of securities available for sale | 60,779 | 85,331 | ||||||
Purchases of securities available for sale | (34,729 | ) | (30,161 | ) | ||||
Net increase in loans | (90,380 | ) | (79,404 | ) | ||||
Proceeds from sales of premises and equipment | 105 | 195 | ||||||
Purchases of premises and equipment | (11,686 | ) | (6,107 | ) | ||||
Net cash paid for acquisition | — | (56,800 | ) | |||||
Proceeds from sale of other real estate | 974 | 957 | ||||||
Net cash provided by investing activities | 112,716 | 37,023 | ||||||
Financing activities: | ||||||||
Net change in deposits | 117 | 186,089 | ||||||
Net change in short-term borrowings | — | (264,923 | ) | |||||
Repayment of long-term debt | (10,110 | ) | (12,309 | ) | ||||
Proceeds from FHLB advances | 780,000 | 760,000 | ||||||
Repayment of FHLB advances | (900,000 | ) | (830,000 | ) | ||||
Proceeds from issuance of subordinated debt, net of issuance costs | — | 98,188 | ||||||
Proceeds from issuance of common stock for dividend reinvestment and employee benefit plans | 186 | 144 | ||||||
Proceeds from exercise of stock options | 197 | — | ||||||
Cash paid for shares withheld to cover payroll taxes upon vesting of restricted stock | (549 | ) | (836 | ) | ||||
Repurchase of common stock | (7,342 | ) | — | |||||
Cash dividends on common stock | (12,876 | ) | (7,885 | ) | ||||
Net cash used in financing activities | (150,377 | ) | (71,532 | ) | ||||
Net change in cash and cash equivalents, including restricted cash | (1,770 | ) | 37,978 | |||||
Cash and cash equivalents, including restricted cash, at beginning of period | 327,265 | 314,275 | ||||||
Cash and cash equivalents, including restricted cash, at end of period | $ | 325,495 | $ | 352,253 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Interest paid | $ | 22,963 | $ | 13,069 | ||||
Income taxes paid | 939 | 811 | ||||||
Significant non-cash investing and financing transactions: | ||||||||
Unsettled securities purchases | — | 4,790 | ||||||
Unsettled government guaranteed loan sales | 13,934 | 14,240 | ||||||
Transfers of loans to foreclosed properties | 751 | 625 | ||||||
Unsettled repurchases of common stock | 498 | — | ||||||
Acquisitions: | ||||||||
Assets acquired | — | 480,679 | ||||||
Liabilities assumed | — | 350,433 | ||||||
Net assets acquired | — | 130,246 | ||||||
Common stock issued in acquisitions | — | 45,746 |
UNITED COMMUNITY BANKS, INC. Consolidated Statements of Comprehensive Income (Unaudited) | ||||||||||||
(in thousands) | Three Months Ended March 31, | |||||||||||
Before-tax Amount | Tax (Expense) Benefit | Net of Tax Amount | ||||||||||
2020 | ||||||||||||
Net income | $ | 40,691 | $ | (8,807 | ) | $ | 31,884 | |||||
Other comprehensive income: | ||||||||||||
Unrealized gains on available-for-sale securities | 13,685 | (3,433 | ) | 10,252 | ||||||||
Amortization of losses included in net income on available-for-sale securities transferred to held-to-maturity | 83 | (20 | ) | 63 | ||||||||
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan | 214 | (54 | ) | 160 | ||||||||
Total other comprehensive income | 13,982 | (3,507 | ) | 10,475 | ||||||||
Comprehensive income | $ | 54,673 | $ | (12,314 | ) | $ | 42,359 | |||||
2019 | ||||||||||||
Net income | $ | 57,218 | $ | (12,956 | ) | $ | 44,262 | |||||
Other comprehensive income: | ||||||||||||
Unrealized gains on available-for-sale securities: | ||||||||||||
Unrealized holding gains arising during period | 33,174 | (8,049 | ) | 25,125 | ||||||||
Reclassification adjustment for losses included in net income | 267 | (68 | ) | 199 | ||||||||
Net unrealized gains | 33,441 | (8,117 | ) | 25,324 | ||||||||
Amortization of losses included in net income on available-for-sale securities transferred to held-to-maturity | 84 | (20 | ) | 64 | ||||||||
Amortization of losses included in net income on terminated derivative financial instruments that were previously accounted for as cash flow hedges | 102 | (26 | ) | 76 | ||||||||
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan | 174 | (44 | ) | 130 | ||||||||
Total other comprehensive income | 33,801 | (8,207 | ) | 25,594 | ||||||||
Comprehensive income | $ | 91,019 | $ | (21,163 | ) | $ | 69,856 |
UNITED COMMUNITY BANKS, INC. Consolidated Statement of Changes in Shareholders’ Equity (Unaudited) | ||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
(in thousands, except share and per share data) | Common Stock | Common Stock Issuable | Capital Surplus | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||
2020 | ||||||||||||||||||||||||||
Balance at beginning of period | $ | 79,014 | $ | 11,491 | $ | 1,496,641 | $ | 40,152 | $ | 8,394 | $ | 1,635,692 | ||||||||||||||
Net income | 31,884 | 31,884 | ||||||||||||||||||||||||
Other comprehensive income | 10,475 | 10,475 | ||||||||||||||||||||||||
Common stock issued to dividend reinvestment plan and employee benefit plans (8,686 shares) | 9 | 190 | 199 | |||||||||||||||||||||||
Amortization of restricted stock awards | 2,492 | 2,492 | ||||||||||||||||||||||||
Vesting of restricted stock, net of shares surrendered to cover payroll taxes (24,005 shares issued and 23,967 shares deferred) | 24 | 665 | (1,177 | ) | (488 | ) | ||||||||||||||||||||
Purchases of common stock (826,482 shares) | (827 | ) | (19,955 | ) | (20,782 | ) | ||||||||||||||||||||
Deferred compensation plan, net, including dividend equivalents | 156 | 156 | ||||||||||||||||||||||||
Shares issued from deferred compensation plan, net of shares surrendered to cover payroll taxes (63,606 shares) | 64 | (1,778 | ) | 528 | (1,186 | ) | ||||||||||||||||||||
Common stock dividends ($0.18 per share) | (14,301 | ) | (14,301 | ) | ||||||||||||||||||||||
Adoption of new accounting standard | (3,529 | ) | (3,529 | ) | ||||||||||||||||||||||
Balance, March 31, 2020 | $ | 78,284 | $ | 10,534 | $ | 1,478,719 | $ | 54,206 | $ | 18,869 | $ | 1,640,612 | ||||||||||||||
2019 | ||||||||||||||||||||||||||
Balance at beginning of period | $ | 79,234 | $ | 10,744 | $ | 1,499,584 | $ | (90,419 | ) | $ | (41,589 | ) | $ | 1,457,554 | ||||||||||||
Net income | 44,262 | 44,262 | ||||||||||||||||||||||||
Other comprehensive income | 25,594 | 25,594 | ||||||||||||||||||||||||
Exercise of stock options (12,000 shares) | 12 | 185 | 197 | |||||||||||||||||||||||
Common stock issued to dividend reinvestment plan and employee benefit plans (8,445 shares) | 8 | 178 | 186 | |||||||||||||||||||||||
Amortization of restricted stock awards | 1,985 | 1,985 | ||||||||||||||||||||||||
Vesting of restricted stock, net of shares surrendered to cover payroll taxes (15,945 shares issued, 19,450 shares deferred) | 16 | 532 | (865 | ) | (317 | ) | ||||||||||||||||||||
Purchases of common stock (305,052) | (305 | ) | (7,535 | ) | (7,840 | ) | ||||||||||||||||||||
Deferred compensation plan, net, including dividend equivalents | 185 | 185 | ||||||||||||||||||||||||
Shares issued from deferred compensation plan, net of shares surrendered to cover payroll taxes (70,044 shares) | 70 | (1,170 | ) | 868 | (232 | ) | ||||||||||||||||||||
Common stock dividends ($0.16 per share) | (12,867 | ) | (12,867 | ) | ||||||||||||||||||||||
Adoption of new accounting standard | (549 | ) | (549 | ) | ||||||||||||||||||||||
Balance, March 31, 2019 | $ | 79,035 | $ | 10,291 | $ | 1,494,400 | $ | (59,573 | ) | $ | (15,995 | ) | $ | 1,508,158 |
UNITED COMMUNITY BANKS, INC. Consolidated Statements of Cash Flows (Unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
(in thousands) | 2020 | 2019 | ||||||
Operating activities: | ||||||||
Net income | $ | 31,884 | $ | 44,262 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation, amortization and accretion | 1,894 | 6,373 | ||||||
Provision for credit losses | 22,191 | 3,300 | ||||||
Stock based compensation | 2,492 | 1,985 | ||||||
Deferred income tax expense | 1,292 | 658 | ||||||
Securities losses, net | — | 267 | ||||||
Gains from sales of other loans | (1,674 | ) | (1,303 | ) | ||||
Changes in assets and liabilities: | ||||||||
Other assets and accrued interest receivable | (45,851 | ) | (6,251 | ) | ||||
Accrued expenses and other liabilities | 8,456 | (5,994 | ) | |||||
Loans held for sale | (31,475 | ) | (7,406 | ) | ||||
Net cash (used in) provided by operating activities | (10,791 | ) | 35,891 | |||||
Investing activities: | ||||||||
Debt securities held-to-maturity: | ||||||||
Proceeds from maturities and calls | 9,085 | 9,049 | ||||||
Purchases | (15,989 | ) | — | |||||
Debt securities available-for-sale and equity securities: | ||||||||
Proceeds from sales | 1,000 | 178,604 | ||||||
Proceeds from maturities and calls | 105,247 | 60,779 | ||||||
Purchases | (70,075 | ) | (34,729 | ) | ||||
Net increase in loans | (110,222 | ) | (90,380 | ) | ||||
Proceeds from sales of premises and equipment | 102 | 105 | ||||||
Purchases of premises and equipment | (2,596 | ) | (11,686 | ) | ||||
Proceeds from sale of other real estate | 63 | 974 | ||||||
Other investing activities, net | (1,600 | ) | — | |||||
Net cash (used in) provided by investing activities | (84,985 | ) | 112,716 | |||||
Financing activities: | ||||||||
Net increase in deposits | 137,783 | 117 | ||||||
Repayment of long-term debt | — | (10,110 | ) | |||||
Proceeds from FHLB advances | 5,000 | 780,000 | ||||||
Repayment of FHLB advances | (5,000 | ) | (900,000 | ) | ||||
Proceeds from issuance of common stock for dividend reinvestment and employee benefit plans | 199 | 186 | ||||||
Proceeds from exercise of stock options | — | 197 | ||||||
Cash paid for shares withheld to cover payroll taxes upon vesting of restricted stock | (1,674 | ) | (549 | ) | ||||
Repurchase of common stock | (20,782 | ) | (7,342 | ) | ||||
Cash dividends on common stock | (14,454 | ) | (12,876 | ) | ||||
Net cash provided by (used in) financing activities | 101,072 | (150,377 | ) | |||||
Net change in cash and cash equivalents, including restricted cash | 5,296 | (1,770 | ) | |||||
Cash and cash equivalents, including restricted cash, at beginning of period | 515,206 | 327,265 | ||||||
Cash and cash equivalents, including restricted cash, at end of period | $ | 520,502 | $ | 325,495 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Significant non-cash investing and financing transactions: | ||||||||
Unsettled government guaranteed loan sales | $ | 485 | $ | 13,934 | ||||
Transfers of loans to foreclosed properties | 127 | 751 | ||||||
Unsettled repurchases of common stock | — | 498 |
• | Accounting Relief for TDRs: The CARES Act provided that modifications for loans under certain forbearance conditions that were otherwise performing before the COVID-19 crisis will not be considered TDRs for regulatory reporting and GAAP. |
• | Optional Delay and Regulatory Relief for CECL Implementation:The CARES Act stipulated that large SEC filers have the option of delaying the adoption of CECL from January 1, 2020 to the earlier of the end of the COVID-19 emergency period or December 31, 2020. Banks that were required to implement CECL by the end of 2020 were granted the option to defer any impact of CECL on regulatory capital for two years before beginning the original three-year regulatory phase-in period, for a total five-year phase-in period. Although United did not elect to delay the adoption of CECL, the Company did elect the five-year phase-in period for regulatory purposes, as discussed above. |
Gross Amounts of Recognized Assets | Gross Amounts Offset on the Balance Sheet | Gross Amounts not Offset in the Balance Sheet | ||||||||||||||||||||||
March 31, 2019 | Net Asset Balance | Financial Instruments | Collateral Received | Net Amount | ||||||||||||||||||||
Derivatives | $ | 25,924 | $ | — | $ | 25,924 | $ | (2,295 | ) | $ | (1,797 | ) | $ | 21,832 | ||||||||||
Total | $ | 25,924 | $ | — | $ | 25,924 | $ | (2,295 | ) | $ | (1,797 | ) | $ | 21,832 | ||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset on the Balance Sheet | Net Liability Balance | Gross Amounts not Offset in the Balance Sheet | |||||||||||||||||||||
Financial Instruments | Collateral Pledged | Net Amount | ||||||||||||||||||||||
Derivatives | $ | 18,789 | $ | — | $ | 18,789 | $ | (2,295 | ) | $ | (11,870 | ) | $ | 4,624 | ||||||||||
Total | $ | 18,789 | $ | — | $ | 18,789 | $ | (2,295 | ) | $ | (11,870 | ) | $ | 4,624 | ||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset on the Balance Sheet | Gross Amounts not Offset in the Balance Sheet | ||||||||||||||||||||||
December 31, 2018 | Net Asset Balance | Financial Instruments | Collateral Received | Net Amount | ||||||||||||||||||||
Repurchase agreements / reverse repurchase agreements | $ | 50,000 | $ | (50,000 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||||
Derivatives | 24,705 | — | 24,705 | (973 | ) | (8,029 | ) | 15,703 | ||||||||||||||||
Total | $ | 74,705 | $ | (50,000 | ) | $ | 24,705 | $ | (973 | ) | $ | (8,029 | ) | $ | 15,703 | |||||||||
Weighted average interest rate of reverse repurchase agreements | 3.20 | % | ||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset on the Balance Sheet | Gross Amounts not Offset in the Balance Sheet | ||||||||||||||||||||||
Net Liability Balance | Financial Instruments | Collateral Pledged | Net Amount | |||||||||||||||||||||
Repurchase agreements / reverse repurchase agreements | $ | 50,000 | $ | (50,000 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||||
Derivatives | 26,433 | — | 26,433 | (973 | ) | (16,126 | ) | 9,334 | ||||||||||||||||
Total | $ | 76,433 | $ | (50,000 | ) | $ | 26,433 | $ | (973 | ) | $ | (16,126 | ) | $ | 9,334 | |||||||||
Weighted average interest rate of repurchase agreements | 2.45 | % |
Remaining Contractual Maturity of the Agreements | ||||||||||||||||||||
Overnight and Continuous | Up to 30 Days | 30 to 90 Days | 91 to 110 days | Total | ||||||||||||||||
Mortgage-backed securities | $ | — | $ | — | $ | 50,000 | $ | — | $ | 50,000 | ||||||||||
Total | $ | — | $ | — | $ | 50,000 | $ | — | $ | 50,000 | ||||||||||
Gross amount of recognized liabilities for repurchase agreements in offsetting disclosure | $ | 50,000 | ||||||||||||||||||
Amounts related to agreements not included in offsetting disclosure | $ | — |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
As of March 31, 2020 | |||||||||||||||
State and political subdivisions | $ | 61,083 | $ | 3,377 | $ | — | $ | 64,460 | |||||||
Residential mortgage-backed securities, Agency | 145,793 | 4,711 | 14 | 150,490 | |||||||||||
Commercial mortgage-backed, Agency | 83,528 | 3,170 | 53 | 86,645 | |||||||||||
Total | $ | 290,404 | $ | 11,258 | $ | 67 | $ | 301,595 | |||||||
As of December 31, 2019 | |||||||||||||||
State and political subdivisions | $ | 45,479 | $ | 1,574 | $ | 9 | $ | 47,044 | |||||||
Residential mortgage-backed securities, Agency | 153,967 | 2,014 | 694 | 155,287 | |||||||||||
Commercial mortgage-backed, Agency | 84,087 | 1,627 | 141 | 85,573 | |||||||||||
Total | $ | 283,533 | $ | 5,215 | $ | 844 | $ | 287,904 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
As of March 31, 2019 | |||||||||||||||
State and political subdivisions | $ | 65,519 | $ | 1,443 | $ | 456 | $ | 66,506 | |||||||
Residential mortgage-backed securities | 170,980 | 1,078 | 2,532 | 169,526 | |||||||||||
Commercial mortgage-backed securities | 28,830 | 323 | 68 | 29,085 | |||||||||||
Total | $ | 265,329 | $ | 2,844 | $ | 3,056 | $ | 265,117 | |||||||
As of December 31, 2018 | |||||||||||||||
State and political subdivisions | $ | 68,551 | $ | 952 | $ | 2,191 | $ | 67,312 | |||||||
Residential mortgage-backed securities | 176,488 | 652 | 5,094 | 172,046 | |||||||||||
Commercial mortgage-backed securities | 29,368 | 173 | 96 | 29,445 | |||||||||||
Total | $ | 274,407 | $ | 1,777 | $ | 7,381 | $ | 268,803 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
As of March 31, 2020 | |||||||||||||||
U.S. Treasuries | $ | 153,219 | $ | 5,745 | $ | — | $ | 158,964 | |||||||
U.S. Government agencies | 2,777 | 190 | — | 2,967 | |||||||||||
State and political subdivisions | 214,191 | 13,507 | 17 | 227,681 | |||||||||||
Residential mortgage-backed securities, Agency | 1,008,944 | 29,264 | 459 | 1,037,749 | |||||||||||
Residential mortgage-backed securities, Non-agency | 260,638 | 2,095 | 2,891 | 259,842 | |||||||||||
Commercial mortgage-backed, Agency | 261,836 | 5,982 | 29 | 267,789 | |||||||||||
Corporate bonds | 191,070 | 665 | 950 | 190,785 | |||||||||||
Asset-backed securities | 109,542 | 340 | 5,783 | 104,099 | |||||||||||
Total | $ | 2,202,217 | $ | 57,788 | $ | 10,129 | $ | 2,249,876 | |||||||
As of December 31, 2019 | |||||||||||||||
U.S. Treasuries | $ | 152,990 | $ | 1,628 | $ | — | $ | 154,618 | |||||||
U.S. Government agencies | 2,848 | 188 | 1 | 3,035 | |||||||||||
State and political subdivisions | 214,677 | 11,813 | — | 226,490 | |||||||||||
Residential mortgage-backed securities, Agency | 1,030,948 | 12,022 | 726 | 1,042,244 | |||||||||||
Residential mortgage-backed securities, Non-agency | 250,550 | 6,231 | — | 256,781 | |||||||||||
Commercial mortgage-backed, Agency | 266,770 | 2,261 | 128 | 268,903 | |||||||||||
Commercial mortgage-backed, Non-agency | 15,395 | 918 | 263 | 16,050 | |||||||||||
Corporate bonds | 202,131 | 1,178 | 218 | 203,091 | |||||||||||
Asset-backed securities | 104,298 | 743 | 1,672 | 103,369 | |||||||||||
Total | $ | 2,240,607 | $ | 36,982 | $ | 3,008 | $ | 2,274,581 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
As of March 31, 2019 | |||||||||||||||
U.S. Treasuries | $ | 142,409 | $ | 22 | $ | 576 | $ | 141,855 | |||||||
U.S. Government agencies | 4,812 | 292 | 3 | 5,101 | |||||||||||
State and political subdivisions | 217,120 | 5,124 | 64 | 222,180 | |||||||||||
Residential mortgage-backed securities | 1,414,612 | 9,222 | 9,749 | 1,414,085 | |||||||||||
Commercial mortgage-backed securities | 345,198 | 432 | 2,291 | 343,339 | |||||||||||
Corporate bonds | 200,471 | 506 | 301 | 200,676 | |||||||||||
Asset-backed securities | 128,359 | 183 | 1,153 | 127,389 | |||||||||||
Total | $ | 2,452,981 | $ | 15,781 | $ | 14,137 | $ | 2,454,625 | |||||||
As of December 31, 2018 | |||||||||||||||
U.S. Treasuries | $ | 150,712 | $ | 767 | $ | 2,172 | $ | 149,307 | |||||||
U.S. Government agencies | 25,493 | 335 | 275 | 25,553 | |||||||||||
State and political subdivisions | 234,750 | 907 | 1,716 | 233,941 | |||||||||||
Residential mortgage-backed securities | 1,464,380 | 3,428 | 21,898 | 1,445,910 | |||||||||||
Commercial mortgage-backed securities | 399,663 | 187 | 7,933 | 391,917 | |||||||||||
Corporate bonds | 200,582 | 502 | 1,921 | 199,163 | |||||||||||
Asset-backed securities | 184,683 | 328 | 2,335 | 182,676 | |||||||||||
Total | $ | 2,660,263 | $ | 6,454 | $ | 38,250 | $ | 2,628,467 |
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
As of March 31, 2020 | |||||||||||||||||||||||
Residential mortgage-backed securities, Agency | $ | 1,589 | $ | 11 | $ | 440 | $ | 3 | $ | 2,029 | $ | 14 | |||||||||||
Commercial mortgage-backed, Agency | — | — | 1,467 | 53 | 1,467 | 53 | |||||||||||||||||
Total unrealized loss position | $ | 1,589 | $ | 11 | $ | 1,907 | $ | 56 | $ | 3,496 | $ | 67 | |||||||||||
As of December 31, 2019 | |||||||||||||||||||||||
State and political subdivisions | $ | 10,117 | $ | 9 | $ | — | $ | — | $ | 10,117 | $ | 9 | |||||||||||
Residential mortgage-backed securities, Agency | 16,049 | 64 | 48,237 | 630 | 64,286 | 694 | |||||||||||||||||
Commercial mortgage-backed, Agency | 21,841 | 87 | 1,685 | 54 | 23,526 | 141 | |||||||||||||||||
Total unrealized loss position | $ | 48,007 | $ | 160 | $ | 49,922 | $ | 684 | $ | 97,929 | $ | 844 |
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
As of March 31, 2019 | |||||||||||||||||||||||
State and political subdivisions | $ | — | $ | — | $ | 22,356 | $ | 456 | $ | 22,356 | $ | 456 | |||||||||||
Residential mortgage-backed securities | — | — | 112,921 | 2,532 | 112,921 | 2,532 | |||||||||||||||||
Commercial mortgage-backed securities | — | — | 4,095 | 68 | 4,095 | 68 | |||||||||||||||||
Total unrealized loss position | $ | — | $ | — | $ | 139,372 | $ | 3,056 | $ | 139,372 | $ | 3,056 | |||||||||||
As of December 31, 2018 | |||||||||||||||||||||||
State and political subdivisions | $ | 7,062 | $ | 46 | $ | 34,146 | $ | 2,145 | $ | 41,208 | $ | 2,191 | |||||||||||
Residential mortgage-backed securities | 6,579 | 61 | 136,376 | 5,033 | 142,955 | 5,094 | |||||||||||||||||
Commercial mortgage-backed securities | — | — | 4,290 | 96 | 4,290 | 96 | |||||||||||||||||
Total unrealized loss position | $ | 13,641 | $ | 107 | $ | 174,812 | $ | 7,274 | $ | 188,453 | $ | 7,381 |
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
As of March 31, 2020 | |||||||||||||||||||||||
State and political subdivisions | $ | 15,009 | $ | 17 | $ | — | $ | — | $ | 15,009 | $ | 17 | |||||||||||
Residential mortgage-backed securities, Agency | 32,736 | 454 | 1,856 | 5 | 34,592 | 459 | |||||||||||||||||
Residential mortgage-backed securities, Non-agency | 151,965 | 2,891 | — | — | 151,965 | 2,891 | |||||||||||||||||
Commercial mortgage-backed, Agency | 8,655 | 29 | — | — | 8,655 | 29 | |||||||||||||||||
Corporate bonds | 94,040 | 950 | — | — | 94,040 | 950 | |||||||||||||||||
Asset-backed securities | 20,713 | 1,240 | 59,022 | 4,543 | 79,735 | 5,783 | |||||||||||||||||
Total unrealized loss position | $ | 323,118 | $ | 5,581 | $ | 60,878 | $ | 4,548 | $ | 383,996 | $ | 10,129 | |||||||||||
As of December 31, 2019 | |||||||||||||||||||||||
U.S. Government agencies | $ | 404 | $ | 1 | $ | — | $ | — | $ | 404 | $ | 1 | |||||||||||
Residential mortgage-backed securities, Agency | 228,611 | 576 | 18,294 | 150 | 246,905 | 726 | |||||||||||||||||
Commercial mortgage-backed, Agency | — | — | 33,517 | 128 | 33,517 | 128 | |||||||||||||||||
Commercial mortgage-backed, Non-agency | — | — | 4,864 | 263 | 4,864 | 263 | |||||||||||||||||
Corporate bonds | 19,742 | 216 | 998 | 2 | 20,740 | 218 | |||||||||||||||||
Asset-backed securities | 32,294 | 625 | 38,990 | 1,047 | 71,284 | 1,672 | |||||||||||||||||
Total unrealized loss position | $ | 281,051 | $ | 1,418 | $ | 96,663 | $ | 1,590 | $ | 377,714 | $ | 3,008 |
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
As of March 31, 2019 | |||||||||||||||||||||||
U.S. Treasuries | $ | — | $ | — | $ | 122,122 | $ | 576 | $ | 122,122 | $ | 576 | |||||||||||
U.S. Government agencies | — | — | 471 | 3 | 471 | 3 | |||||||||||||||||
State and political subdivisions | 415 | 1 | 18,186 | 63 | 18,601 | 64 | |||||||||||||||||
Residential mortgage-backed securities | 47,263 | 644 | 665,525 | 9,105 | 712,788 | 9,749 | |||||||||||||||||
Commercial mortgage-backed securities | — | — | 237,883 | 2,291 | 237,883 | 2,291 | |||||||||||||||||
Corporate bonds | — | — | 108,272 | 301 | 108,272 | 301 | |||||||||||||||||
Asset-backed securities | 71,224 | 720 | 17,825 | 433 | 89,049 | 1,153 | |||||||||||||||||
Total unrealized loss position | $ | 118,902 | $ | 1,365 | $ | 1,170,284 | $ | 12,772 | $ | 1,289,186 | $ | 14,137 | |||||||||||
As of December 31, 2018 | |||||||||||||||||||||||
U.S. Treasuries | $ | — | $ | — | $ | 120,391 | $ | 2,172 | $ | 120,391 | $ | 2,172 | |||||||||||
U.S. Government agencies | — | — | 21,519 | 275 | 21,519 | 275 | |||||||||||||||||
State and political subdivisions | 15,160 | 28 | 133,500 | 1,688 | 148,660 | 1,716 | |||||||||||||||||
Residential mortgage-backed securities | 234,583 | 808 | 775,360 | 21,090 | 1,009,943 | 21,898 | |||||||||||||||||
Commercial mortgage-backed securities | 4,552 | 594 | 355,292 | 7,339 | 359,844 | 7,933 | |||||||||||||||||
Corporate bonds | — | — | 117,296 | 1,921 | 117,296 | 1,921 | |||||||||||||||||
Asset-backed securities | 74,492 | 1,879 | 31,968 | 456 | 106,460 | 2,335 | |||||||||||||||||
Total unrealized loss position | $ | 328,787 | $ | 3,309 | $ | 1,555,326 | $ | 34,941 | $ | 1,884,113 | $ | 38,250 |
Three Months Ended March 31, | |||||||||
2019 | 2018 | ||||||||
Proceeds from sales | $ | 178,604 | $ | 113,961 | |||||
Gross gains on sales | $ | 1,287 | $ | 417 | |||||
Gross losses on sales | (1,554 | ) | (1,357 | ) | |||||
Net losses on sales of securities | $ | (267 | ) | $ | (940 | ) | |||
Income tax benefit attributable to sales | $ | (68 | ) | $ | (221 | ) |
Three Months Ended March 31, | |||||||||
2020 | 2019 | ||||||||
Proceeds from sales | $ | 1,000 | $ | 178,604 | |||||
Gross gains on sales | $ | — | $ | 1,287 | |||||
Gross losses on sales | — | (1,554 | ) | ||||||
Net losses on sales of securities | $ | — | $ | (267 | ) | ||||
Income tax benefit attributable to sales | $ | — | $ | (68 | ) |
Available-for-Sale | Held-to-Maturity | ||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
U.S. Treasuries: | |||||||||||||||
Within 1 year | $ | 29,967 | $ | 30,035 | $ | — | $ | — | |||||||
1 to 5 years | 123,252 | 128,929 | — | — | |||||||||||
153,219 | 158,964 | — | — | ||||||||||||
U.S. Government agencies: | |||||||||||||||
1 to 5 years | 354 | 358 | — | — | |||||||||||
More than 10 years | 2,423 | 2,609 | — | — | |||||||||||
2,777 | 2,967 | — | — | ||||||||||||
State and political subdivisions: | |||||||||||||||
Within 1 year | 935 | 935 | 1,350 | 1,363 | |||||||||||
1 to 5 years | 54,097 | 55,202 | 11,759 | 12,421 | |||||||||||
5 to 10 years | 24,255 | 25,802 | 13,323 | 14,714 | |||||||||||
More than 10 years | 134,904 | 145,742 | 34,651 | 35,962 | |||||||||||
214,191 | 227,681 | 61,083 | 64,460 | ||||||||||||
Corporate bonds: | |||||||||||||||
Within 1 year | 160,000 | 159,258 | — | — | |||||||||||
1 to 5 years | 27,570 | 27,835 | — | — | |||||||||||
5 to 10 years | 3,500 | 3,692 | — | — | |||||||||||
191,070 | 190,785 | — | — | ||||||||||||
Total securities other than asset-backed and mortgage-backed securities: | |||||||||||||||
Within 1 year | 190,902 | 190,228 | 1,350 | 1,363 | |||||||||||
1 to 5 years | 205,273 | 212,324 | 11,759 | 12,421 | |||||||||||
5 to 10 years | 27,755 | 29,494 | 13,323 | 14,714 | |||||||||||
More than 10 years | 137,327 | 148,351 | 34,651 | 35,962 | |||||||||||
Asset-backed securities | 109,542 | 104,099 | — | — | |||||||||||
Residential mortgage-backed securities | 1,269,582 | 1,297,591 | 145,793 | 150,490 | |||||||||||
Commercial mortgage-backed securities | 261,836 | 267,789 | 83,528 | 86,645 | |||||||||||
$ | 2,202,217 | $ | 2,249,876 | $ | 290,404 | $ | 301,595 |
Available-for-Sale | Held-to-Maturity | ||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
U.S. Treasuries: | |||||||||||||||
1 to 5 years | $ | 142,409 | $ | 141,855 | $ | — | $ | — | |||||||
142,409 | 141,855 | — | — | ||||||||||||
U.S. Government agencies: | |||||||||||||||
1 to 5 years | 474 | 471 | — | — | |||||||||||
More than 10 years | 4,338 | 4,630 | — | — | |||||||||||
4,812 | 5,101 | — | — | ||||||||||||
State and political subdivisions: | |||||||||||||||
Within 1 year | 500 | 502 | 3,250 | 3,262 | |||||||||||
1 to 5 years | 36,058 | 36,060 | 11,567 | 12,024 | |||||||||||
5 to 10 years | 35,888 | 36,743 | 7,753 | 8,423 | |||||||||||
More than 10 years | 144,674 | 148,875 | 42,949 | 42,797 | |||||||||||
217,120 | 222,180 | 65,519 | 66,506 | ||||||||||||
Corporate bonds: | |||||||||||||||
Within 1 year | 10,239 | 10,219 | — | — | |||||||||||
1 to 5 years | 187,732 | 187,948 | — | — | |||||||||||
5 to 10 years | 1,500 | 1,514 | — | — | |||||||||||
More than 10 years | 1,000 | 995 | — | — | |||||||||||
200,471 | 200,676 | — | — | ||||||||||||
Asset-backed securities: | |||||||||||||||
1 to 5 years | 2,121 | 2,107 | — | — | |||||||||||
More than 10 years | 126,238 | 125,282 | — | — | |||||||||||
128,359 | 127,389 | — | — | ||||||||||||
Total securities other than mortgage-backed securities: | |||||||||||||||
Within 1 year | 10,739 | 10,721 | 3,250 | 3,262 | |||||||||||
1 to 5 years | 368,794 | 368,441 | 11,567 | 12,024 | |||||||||||
5 to 10 years | 37,388 | 38,257 | 7,753 | 8,423 | |||||||||||
More than 10 years | 276,250 | 279,782 | 42,949 | 42,797 | |||||||||||
Residential mortgage-backed securities | 1,414,612 | 1,414,085 | 170,980 | 169,526 | |||||||||||
Commercial mortgage-backed securities | 345,198 | 343,339 | 28,830 | 29,085 | |||||||||||
$ | 2,452,981 | $ | 2,454,625 | $ | 265,329 | $ | 265,117 |
March 31, 2020 | December 31, 2019 | ||||||||
Owner occupied commercial real estate | $ | 1,702,984 | $ | 1,720,227 | |||||
Income producing commercial real estate | 2,064,502 | 2,007,950 | |||||||
Commercial & industrial | 1,310,112 | 1,220,657 | |||||||
Commercial construction | 959,318 | 976,215 | |||||||
Equipment financing | 760,952 | 744,544 | |||||||
Total commercial | 6,797,868 | 6,669,593 | |||||||
Residential mortgage | 1,127,988 | 1,117,616 | |||||||
Home equity lines of credit | 668,382 | 660,675 | |||||||
Residential construction | 215,996 | 236,437 | |||||||
Consumer | 125,190 | 128,232 | |||||||
Total loans | 8,935,424 | 8,812,553 | |||||||
Less allowance for credit losses - loans | (81,905 | ) | (62,089 | ) | |||||
Loans, net | $ | 8,853,519 | $ | 8,750,464 |
March 31, 2019 | December 31, 2018 | ||||||
Owner occupied commercial real estate | $ | 1,620,068 | $ | 1,647,904 | |||
Income producing commercial real estate | 1,867,425 | 1,812,420 | |||||
Commercial & industrial | 1,283,865 | 1,278,347 | |||||
Commercial construction | 865,666 | 796,158 | |||||
Equipment financing | 605,984 | 564,614 | |||||
Total commercial | 6,243,008 | 6,099,443 | |||||
Residential mortgage | 1,063,840 | 1,049,232 | |||||
Home equity lines of credit | 683,771 | 694,010 | |||||
Residential construction | 200,708 | 211,011 | |||||
Consumer direct | 121,174 | 122,013 | |||||
Indirect auto | 180,753 | 207,692 | |||||
Total loans | 8,493,254 | 8,383,401 | |||||
Less allowance for loan losses | (61,642 | ) | (61,203 | ) | |||
Loans, net | $ | 8,431,612 | $ | 8,322,198 |
March 31, 2020 | December 31, 2019 | ||||||||
Minimum future lease payments receivable | $ | 39,725 | $ | 39,709 | |||||
Estimated residual value of leased equipment | 3,575 | 3,631 | |||||||
Initial direct costs | 788 | 842 | |||||||
Security deposits | (918 | ) | (989 | ) | |||||
Purchase accounting premium | 238 | 273 | |||||||
Unearned income | (5,848 | ) | (6,088 | ) | |||||
Net investment in leases | $ | 37,560 | $ | 37,378 |
Year | |||||
Remainder of 2020 | $ | 11,653 | |||
2021 | 12,387 | ||||
2022 | 8,683 | ||||
2023 | 4,937 | ||||
2024 | 1,700 | ||||
Thereafter | 365 | ||||
Total | $ | 39,725 |
Three Months Ended March 31, 2019 | |||||
Balance at beginning of period | $ | 26,868 | |||
Accretion | (4,813 | ) | |||
Reclassification from nonaccretable difference | 2,706 | ||||
Changes in expected cash flows that do not affect nonaccretable difference | 1,863 | ||||
Balance at end of period | $ | 26,624 |
Accruing | ||||||||||||||||||||||||
Current Loans | Loans Past Due | |||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | > 90 Days | Nonaccrual Loans | Total Loans | ||||||||||||||||||||
Owner occupied commercial real estate | $ | 1,686,758 | $ | 4,364 | $ | 1,457 | $ | — | $ | 10,405 | $ | 1,702,984 | ||||||||||||
Income producing commercial real estate | 2,057,775 | 4,482 | 10 | — | 2,235 | 2,064,502 | ||||||||||||||||||
Commercial & industrial | 1,304,689 | 2,004 | 250 | — | 3,169 | 1,310,112 | ||||||||||||||||||
Commercial construction | 956,397 | 791 | 406 | — | 1,724 | 959,318 | ||||||||||||||||||
Equipment financing | 753,741 | 4,019 | 753 | — | 2,439 | 760,952 | ||||||||||||||||||
Total commercial | 6,759,360 | 15,660 | 2,876 | — | 19,972 | 6,797,868 | ||||||||||||||||||
Residential mortgage | 1,110,031 | 4,882 | 617 | — | 12,458 | 1,127,988 | ||||||||||||||||||
Home equity lines of credit | 661,857 | 3,223 | 292 | — | 3,010 | 668,382 | ||||||||||||||||||
Residential construction | 214,568 | 836 | 52 | — | 540 | 215,996 | ||||||||||||||||||
Consumer | 123,720 | 982 | 260 | — | 228 | 125,190 | ||||||||||||||||||
Total loans | $ | 8,869,536 | $ | 25,583 | $ | 4,097 | $ | — | $ | 36,208 | $ | 8,935,424 |
Three Months Ended March 31, | |||||||||
2019 | 2018 | ||||||||
Balance at beginning of period | $ | 26,868 | $ | 17,686 | |||||
Additions due to acquisitions | — | 1,830 | |||||||
Accretion | (4,813 | ) | (2,546 | ) | |||||
Reclassification from nonaccretable difference | 2,706 | 591 | |||||||
Changes in expected cash flows that do not affect nonaccretable difference | 1,863 | 475 | |||||||
Balance at end of period | $ | 26,624 | $ | 18,036 |
Loans Past Due - Accruing and Nonaccrual | ||||||||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | > 90 Days (1) | Total | Current Loans | PCI Loans | Total | ||||||||||||||||||||||
Owner occupied commercial real estate | $ | 2,913 | $ | 2,007 | $ | 6,079 | $ | 10,999 | $ | 1,700,682 | $ | 8,546 | $ | 1,720,227 | ||||||||||||||
Income producing commercial real estate | 562 | 706 | 401 | 1,669 | 1,979,053 | 27,228 | 2,007,950 | |||||||||||||||||||||
Commercial & industrial | 2,140 | 491 | 2,119 | 4,750 | 1,215,581 | 326 | 1,220,657 | |||||||||||||||||||||
Commercial construction | 1,867 | 557 | 96 | 2,520 | 966,833 | 6,862 | 976,215 | |||||||||||||||||||||
Equipment financing | 2,065 | 923 | 3,045 | 6,033 | 734,526 | 3,985 | 744,544 | |||||||||||||||||||||
Total commercial | 9,547 | 4,684 | 11,740 | 25,971 | 6,596,675 | 46,947 | 6,669,593 | |||||||||||||||||||||
Residential mortgage | 5,655 | 2,212 | 2,171 | 10,038 | 1,097,999 | 9,579 | 1,117,616 | |||||||||||||||||||||
Home equity lines of credit | 1,697 | 421 | 1,385 | 3,503 | 655,762 | 1,410 | 660,675 | |||||||||||||||||||||
Residential construction | 325 | 125 | 402 | 852 | 235,211 | 374 | 236,437 | |||||||||||||||||||||
Consumer | 668 | 181 | 27 | 876 | 127,020 | 336 | 128,232 | |||||||||||||||||||||
Total loans | $ | 17,892 | $ | 7,623 | $ | 15,725 | $ | 41,240 | $ | 8,712,667 | $ | 58,646 | $ | 8,812,553 |
March 31, 2019 | December 31, 2018 | ||||||||
Minimum future lease payments receivable | $ | 35,385 | $ | 31,915 | |||||
Estimated residual value of leased equipment | 3,791 | 3,593 | |||||||
Initial direct costs | 856 | 827 | |||||||
Security deposits | (1,173 | ) | (1,189 | ) | |||||
Purchase accounting premium | 644 | 806 | |||||||
Unearned income | (6,011 | ) | (5,568 | ) | |||||
Net investment in leases | $ | 33,492 | $ | 30,384 |
Year | |||||
Remainder of 2019 | $ | 10,384 | |||
2020 | 10,960 | ||||
2021 | 7,156 | ||||
2022 | 4,249 | ||||
2023 | 2,046 | ||||
Thereafter | 590 | ||||
Total | $ | 35,385 |
CECL | Incurred Loss | |||||||||||||||
March 31, 2020 | December 31, 2019 | |||||||||||||||
Nonaccrual loans with no allowance | Nonaccrual loans with an allowance | Total Nonaccrual Loans | Nonaccrual Loans | |||||||||||||
Owner occupied commercial real estate | $ | 6,889 | $ | 3,516 | $ | 10,405 | $ | 10,544 | ||||||||
Income producing commercial real estate | 1,039 | 1,196 | 2,235 | 1,996 | ||||||||||||
Commercial & industrial | 1,332 | 1,837 | 3,169 | 2,545 | ||||||||||||
Commercial construction | 1,235 | 489 | 1,724 | 2,277 | ||||||||||||
Equipment financing | 43 | 2,396 | 2,439 | 3,141 | ||||||||||||
Total commercial | 10,538 | 9,434 | 19,972 | 20,503 | ||||||||||||
Residential mortgage | 3,163 | 9,295 | 12,458 | 10,567 | ||||||||||||
Home equity lines of credit | 962 | 2,048 | 3,010 | 3,173 | ||||||||||||
Residential construction | 130 | 410 | 540 | 939 | ||||||||||||
Consumer | 8 | 220 | 228 | 159 | ||||||||||||
Total | $ | 14,801 | $ | 21,407 | $ | 36,208 | $ | 35,341 |
2019 | 2018 | |||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||
Beginning Balance | Charge-Offs | Recoveries | (Release)Provision | Ending Balance | Beginning Balance | Charge-Offs | Recoveries | (Release) Provision | Ending Balance | |||||||||||||||||||||||||||||||
Owner occupied commercial real estate | $ | 12,207 | $ | (5 | ) | $ | 69 | $ | (397 | ) | $ | 11,874 | $ | 14,776 | $ | (60 | ) | $ | 103 | $ | (258 | ) | $ | 14,561 | ||||||||||||||||
Income producing commercial real estate | 11,073 | (197 | ) | 20 | 230 | 11,126 | 9,381 | (657 | ) | 235 | 817 | 9,776 | ||||||||||||||||||||||||||||
Commercial & industrial | 4,802 | (1,519 | ) | 163 | 1,449 | 4,895 | 3,971 | (384 | ) | 389 | 99 | 4,075 | ||||||||||||||||||||||||||||
Commercial construction | 10,337 | (69 | ) | 394 | (387 | ) | 10,275 | 10,523 | (363 | ) | 97 | (223 | ) | 10,034 | ||||||||||||||||||||||||||
Equipment financing | 5,452 | (1,424 | ) | 143 | 2,060 | 6,231 | — | (139 | ) | 97 | 2,333 | 2,291 | ||||||||||||||||||||||||||||
Residential mortgage | 8,295 | (61 | ) | 48 | 63 | 8,345 | 10,097 | (70 | ) | 123 | 71 | 10,221 | ||||||||||||||||||||||||||||
Home equity lines of credit | 4,752 | (337 | ) | 122 | 260 | 4,797 | 5,177 | (124 | ) | 35 | (156 | ) | 4,932 | |||||||||||||||||||||||||||
Residential construction | 2,433 | (4 | ) | 26 | (65 | ) | 2,390 | 2,729 | — | 64 | 251 | 3,044 | ||||||||||||||||||||||||||||
Consumer direct | 853 | (547 | ) | 207 | 324 | 837 | 710 | (651 | ) | 160 | 514 | 733 | ||||||||||||||||||||||||||||
Indirect auto | 999 | (197 | ) | 38 | 32 | 872 | 1,550 | (436 | ) | 80 | 224 | 1,418 | ||||||||||||||||||||||||||||
Total allowance for loan losses | 61,203 | (4,360 | ) | 1,230 | 3,569 | 61,642 | 58,914 | (2,884 | ) | 1,383 | 3,672 | 61,085 | ||||||||||||||||||||||||||||
Allowance for unfunded commitments | 3,410 | — | — | (269 | ) | 3,141 | 2,312 | — | — | 128 | 2,440 | |||||||||||||||||||||||||||||
Total allowance for credit losses | $ | 64,613 | $ | (4,360 | ) | $ | 1,230 | $ | 3,300 | $ | 64,783 | $ | 61,226 | $ | (2,884 | ) | $ | 1,383 | $ | 3,800 | $ | 63,525 |
Allowance for Credit Losses | |||||||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | Collectively evaluated for impairment | PCI | Ending Balance | Individually evaluated for impairment | Collectively evaluated for impairment | PCI | Ending Balance | ||||||||||||||||||||||||
Owner occupied commercial real estate | $ | 825 | $ | 10,894 | $ | 155 | $ | 11,874 | $ | 862 | $ | 11,328 | $ | 17 | $ | 12,207 | |||||||||||||||
Income producing commercial real estate | 280 | 10,846 | — | 11,126 | 402 | 10,671 | — | 11,073 | |||||||||||||||||||||||
Commercial & industrial | 36 | 4,855 | 4 | 4,895 | 32 | 4,761 | 9 | 4,802 | |||||||||||||||||||||||
Commercial construction | 68 | 10,001 | 206 | 10,275 | 71 | 9,974 | 292 | 10,337 | |||||||||||||||||||||||
Equipment financing | — | 5,988 | 243 | 6,231 | — | 5,045 | 407 | 5,452 | |||||||||||||||||||||||
Residential mortgage | 916 | 7,403 | 26 | 8,345 | 861 | 7,410 | 24 | 8,295 | |||||||||||||||||||||||
Home equity lines of credit | 1 | 4,796 | — | 4,797 | 1 | 4,740 | 11 | 4,752 | |||||||||||||||||||||||
Residential construction | 63 | 2,327 | — | 2,390 | 51 | 2,382 | — | 2,433 | |||||||||||||||||||||||
Consumer direct | 5 | 832 | — | 837 | 6 | 847 | — | 853 | |||||||||||||||||||||||
Indirect auto | 25 | 847 | — | 872 | 26 | 973 | — | 999 | |||||||||||||||||||||||
Total allowance for loan losses | 2,219 | 58,789 | 634 | 61,642 | 2,312 | 58,131 | 760 | 61,203 | |||||||||||||||||||||||
Allowance for unfunded commitments | — | 3,141 | — | 3,141 | — | 3,410 | — | 3,410 | |||||||||||||||||||||||
Total allowance for credit losses | $ | 2,219 | $ | 61,930 | $ | 634 | $ | 64,783 | $ | 2,312 | $ | 61,541 | $ | 760 | $ | 64,613 |
Loans Outstanding | |||||||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | Collectively evaluated for impairment | PCI | Ending Balance | Individually evaluated for impairment | Collectively evaluated for impairment | PCI | Ending Balance | ||||||||||||||||||||||||
Owner occupied commercial real estate | $ | 17,238 | $ | 1,594,226 | $ | 8,604 | $ | 1,620,068 | $ | 17,602 | $ | 1,620,450 | $ | 9,852 | $ | 1,647,904 | |||||||||||||||
Income producing commercial real estate | 14,125 | 1,817,203 | 36,097 | 1,867,425 | 16,584 | 1,757,525 | 38,311 | 1,812,420 | |||||||||||||||||||||||
Commercial & industrial | 1,701 | 1,281,823 | 341 | 1,283,865 | 1,621 | 1,276,318 | 408 | 1,278,347 | |||||||||||||||||||||||
Commercial construction | 2,379 | 857,683 | 5,604 | 865,666 | 2,491 | 787,760 | 5,907 | 796,158 | |||||||||||||||||||||||
Equipment financing | — | 599,243 | 6,741 | 605,984 | — | 556,672 | 7,942 | 564,614 | |||||||||||||||||||||||
Residential mortgage | 15,453 | 1,039,582 | 8,805 | 1,063,840 | 14,220 | 1,025,862 | 9,150 | 1,049,232 | |||||||||||||||||||||||
Home equity lines of credit | 255 | 682,047 | 1,469 | 683,771 | 276 | 692,122 | 1,612 | 694,010 | |||||||||||||||||||||||
Residential construction | 1,340 | 198,787 | 581 | 200,708 | 1,207 | 209,070 | 734 | 211,011 | |||||||||||||||||||||||
Consumer direct | 199 | 120,499 | 476 | 121,174 | 211 | 121,269 | 533 | 122,013 | |||||||||||||||||||||||
Indirect auto | 1,104 | 179,649 | — | 180,753 | 1,237 | 206,455 | — | 207,692 | |||||||||||||||||||||||
Total loans | $ | 53,794 | $ | 8,370,742 | $ | 68,718 | $ | 8,493,254 | $ | 55,449 | $ | 8,253,503 | $ | 74,449 | $ | 8,383,401 |
March 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | ||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||
Owner occupied commercial real estate | $ | 8,159 | $ | 6,089 | $ | — | $ | 8,650 | $ | 6,546 | $ | — | |||||||||||
Income producing commercial real estate | 8,333 | 8,227 | — | 9,986 | 9,881 | — | |||||||||||||||||
Commercial & industrial | 522 | 360 | — | 525 | 370 | — | |||||||||||||||||
Commercial construction | 119 | 113 | — | 685 | 507 | — | |||||||||||||||||
Equipment financing | — | — | — | — | — | — | |||||||||||||||||
Total commercial | 17,133 | 14,789 | — | 19,846 | 17,304 | — | |||||||||||||||||
Residential mortgage | 6,513 | 5,890 | — | 5,787 | 5,202 | — | |||||||||||||||||
Home equity lines of credit | 275 | 215 | — | 330 | 234 | — | |||||||||||||||||
Residential construction | 753 | 624 | — | 554 | 428 | — | |||||||||||||||||
Consumer direct | 15 | 15 | — | �� | 18 | 17 | — | ||||||||||||||||
Indirect auto | 142 | 130 | — | 294 | 292 | — | |||||||||||||||||
Total with no related allowance recorded | 24,831 | 21,663 | — | 26,829 | 23,477 | — | |||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||
Owner occupied commercial real estate | 11,191 | 11,149 | 825 | 11,095 | 11,056 | 862 | |||||||||||||||||
Income producing commercial real estate | 6,166 | 5,898 | 280 | 6,968 | 6,703 | 402 | |||||||||||||||||
Commercial & industrial | 1,746 | 1,341 | 36 | 1,652 | 1,251 | 32 | |||||||||||||||||
Commercial construction | 2,503 | 2,266 | 68 | 2,130 | 1,984 | 71 | |||||||||||||||||
Equipment financing | — | — | — | — | — | — | |||||||||||||||||
Total commercial | 21,606 | 20,654 | 1,209 | 21,845 | 20,994 | 1,367 | |||||||||||||||||
Residential mortgage | 9,713 | 9,563 | 916 | 9,169 | 9,018 | 861 | |||||||||||||||||
Home equity lines of credit | 43 | 40 | 1 | 45 | 42 | 1 | |||||||||||||||||
Residential construction | 727 | 716 | 63 | 791 | 779 | 51 | |||||||||||||||||
Consumer direct | 189 | 184 | 5 | 199 | 194 | 6 | |||||||||||||||||
Indirect auto | 975 | 974 | 25 | 946 | 945 | 26 | |||||||||||||||||
Total with an allowance recorded | 33,253 | 32,131 | 2,219 | 32,995 | 31,972 | 2,312 | |||||||||||||||||
Total | $ | 58,084 | $ | 53,794 | $ | 2,219 | $ | 59,824 | $ | 55,449 | $ | 2,312 |
New TDRs | ||||||||||||||||||||||||||||||
Pre-modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment by Type of Modification | TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted | ||||||||||||||||||||||||||||
Number of Contracts | Rate Reduction | Structure | Other | Total | Number of Contracts | Recorded Investment | ||||||||||||||||||||||||
Three Months Ended March 31, 2019 | ||||||||||||||||||||||||||||||
Owner occupied commercial real estate | — | $ | — | $ | — | $ | — | $ | — | $ | — | — | $ | — | ||||||||||||||||
Income producing commercial real estate | 1 | 169 | — | 169 | — | 169 | — | — | ||||||||||||||||||||||
Commercial & industrial | 1 | 7 | — | — | 7 | 7 | — | — | ||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Equipment financing | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total commercial | 2 | 176 | — | 169 | 7 | 176 | — | — | ||||||||||||||||||||||
Residential mortgage | 2 | 345 | — | 344 | — | 344 | — | — | ||||||||||||||||||||||
Home equity lines of credit | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consumer direct | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Indirect auto | 6 | 66 | — | — | 57 | 57 | — | — | ||||||||||||||||||||||
Total loans | 10 | $ | 587 | $ | — | $ | 513 | $ | 64 | $ | 577 | — | $ | — | ||||||||||||||||
Three Months Ended March 31, 2018 | ||||||||||||||||||||||||||||||
Owner occupied commercial real estate | 3 | $ | 994 | $ | — | $ | 978 | $ | — | $ | 978 | 2 | $ | 1,586 | ||||||||||||||||
Income producing commercial real estate | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Commercial & industrial | 1 | 81 | — | 5 | — | 5 | — | — | ||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Equipment financing | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total commercial | 4 | 1,075 | — | 983 | — | 983 | 2 | 1,586 | ||||||||||||||||||||||
Residential mortgage | 2 | 340 | — | 340 | — | 340 | — | — | ||||||||||||||||||||||
Home equity lines of credit | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consumer direct | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Indirect auto | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total loans | 6 | $ | 1,415 | $ | — | $ | 1,323 | $ | — | $ | 1,323 | 2 | $ | 1,586 |
2019 | 2018 | |||||||||||||||||||||||
Three Months Ended March 31, | Average Balance | Interest Revenue Recognized During Impairment | Cash Basis Interest Revenue Received | Average Balance | Interest Revenue Recognized During Impairment | Cash Basis Interest Revenue Received | ||||||||||||||||||
Owner occupied commercial real estate | $ | 17,410 | $ | 285 | $ | 284 | $ | 24,658 | $ | 245 | $ | 280 | ||||||||||||
Income producing commercial real estate | 14,237 | 193 | 207 | 16,433 | 210 | 235 | ||||||||||||||||||
Commercial & industrial | 1,716 | 19 | 19 | 2,596 | 40 | 42 | ||||||||||||||||||
Commercial construction | 2,402 | 34 | 33 | 3,936 | 51 | 52 | ||||||||||||||||||
Equipment financing | — | — | — | — | — | — | ||||||||||||||||||
Total commercial | 35,765 | 531 | 543 | 47,623 | 546 | 609 | ||||||||||||||||||
Residential mortgage | 15,502 | 168 | 174 | 14,993 | 149 | 150 | ||||||||||||||||||
Home equity lines of credit | 258 | 4 | 3 | 344 | 4 | 4 | ||||||||||||||||||
Residential construction | 1,408 | 24 | 23 | 1,590 | 24 | 24 | ||||||||||||||||||
Consumer direct | 205 | 4 | 4 | 291 | 5 | 5 | ||||||||||||||||||
Indirect auto | 1,190 | 14 | 14 | 1,378 | 18 | 18 | ||||||||||||||||||
Total | $ | 54,328 | $ | 745 | $ | 761 | $ | 66,219 | $ | 746 | $ | 810 |
March 31, 2019 | December 31, 2018 | ||||||||
Owner occupied commercial real estate | $ | 7,030 | $ | 6,421 | |||||
Income producing commercial real estate | 1,276 | 1,160 | |||||||
Commercial & industrial | 1,666 | 1,417 | |||||||
Commercial construction | 473 | 605 | |||||||
Equipment financing | 1,813 | 2,677 | |||||||
Total commercial | 12,258 | 12,280 | |||||||
Residential mortgage | 8,281 | 8,035 | |||||||
Home equity lines of credit | 2,233 | 2,360 | |||||||
Residential construction | 347 | 288 | |||||||
Consumer direct | 47 | 89 | |||||||
Indirect auto | 458 | 726 | |||||||
Total | $ | 23,624 | $ | 23,778 |
Loans Past Due | ||||||||||||||||||||||||||||
As of March 31, 2019 | 30 - 59 Days | 60 - 89 Days | > 90 Days | Total | Loans Not Past Due | PCI Loans | Total | |||||||||||||||||||||
Owner occupied commercial real estate | $ | 4,644 | $ | 1,142 | $ | 3,328 | $ | 9,114 | $ | 1,602,350 | $ | 8,604 | $ | 1,620,068 | ||||||||||||||
Income producing commercial real estate | 1,199 | 125 | 706 | 2,030 | 1,829,298 | 36,097 | 1,867,425 | |||||||||||||||||||||
Commercial & industrial | 2,649 | 790 | 937 | 4,376 | 1,279,148 | 341 | 1,283,865 | |||||||||||||||||||||
Commercial construction | 139 | 443 | 24 | 606 | 859,456 | 5,604 | 865,666 | |||||||||||||||||||||
Equipment financing | 1,809 | 894 | 1,722 | 4,425 | 594,818 | 6,741 | 605,984 | |||||||||||||||||||||
Total commercial | 10,440 | 3,394 | 6,717 | 20,551 | 6,165,070 | 57,387 | 6,243,008 | |||||||||||||||||||||
Residential mortgage | 4,862 | 1,511 | 1,292 | 7,665 | 1,047,370 | 8,805 | 1,063,840 | |||||||||||||||||||||
Home equity lines of credit | 2,355 | 634 | 528 | 3,517 | 678,785 | 1,469 | 683,771 | |||||||||||||||||||||
Residential construction | 574 | 132 | 154 | 860 | 199,267 | 581 | 200,708 | |||||||||||||||||||||
Consumer direct | 522 | 89 | 2 | 613 | 120,085 | 476 | 121,174 | |||||||||||||||||||||
Indirect auto | 711 | 185 | 416 | 1,312 | 179,441 | — | 180,753 | |||||||||||||||||||||
Total loans | $ | 19,464 | $ | 5,945 | $ | 9,109 | $ | 34,518 | $ | 8,390,018 | $ | 68,718 | $ | 8,493,254 |
Loans Past Due | ||||||||||||||||||||||||||||
As of December 31, 2018 | 30 - 59 Days | 60 - 89 Days | > 90 Days | Total | Loans Not Past Due | PCI Loans | Total | |||||||||||||||||||||
Owner occupied commercial real estate | $ | 2,542 | $ | 2,897 | $ | 1,011 | $ | 6,450 | $ | 1,631,602 | $ | 9,852 | $ | 1,647,904 | ||||||||||||||
Income producing commercial real estate | 1,624 | 291 | 301 | 2,216 | 1,771,893 | 38,311 | 1,812,420 | |||||||||||||||||||||
Commercial & industrial | 7,189 | 718 | 400 | 8,307 | 1,269,632 | 408 | 1,278,347 | |||||||||||||||||||||
Commercial construction | 267 | — | 68 | 335 | 789,916 | 5,907 | 796,158 | |||||||||||||||||||||
Equipment financing | 1,351 | 739 | 2,658 | 4,748 | 551,924 | 7,942 | 564,614 | |||||||||||||||||||||
Total commercial | 12,973 | 4,645 | 4,438 | 22,056 | 6,014,967 | 62,420 | 6,099,443 | |||||||||||||||||||||
Residential mortgage | 5,461 | 1,788 | 1,950 | 9,199 | 1,030,883 | 9,150 | 1,049,232 | |||||||||||||||||||||
Home equity lines of credit | 2,112 | 864 | 902 | 3,878 | 688,520 | 1,612 | 694,010 | |||||||||||||||||||||
Residential construction | 509 | 63 | 190 | 762 | 209,515 | 734 | 211,011 | |||||||||||||||||||||
Consumer direct | 600 | 82 | 21 | 703 | 120,777 | 533 | 122,013 | |||||||||||||||||||||
Indirect auto | 750 | 323 | 633 | 1,706 | 205,986 | — | 207,692 | |||||||||||||||||||||
Total loans | $ | 22,405 | $ | 7,765 | $ | 8,134 | $ | 38,304 | $ | 8,270,648 | $ | 74,449 | $ | 8,383,401 |
As of March 31, 2020 | ||||||||||||||||||||||||||||||||||||
Term Loans by Origination Year | Revolvers | Revolvers converted to term loans | Total | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | Prior | |||||||||||||||||||||||||||||||
Owner occupied commercial real estate: | ||||||||||||||||||||||||||||||||||||
Pass | $ | 108,385 | $ | 402,541 | $ | 271,646 | $ | 236,178 | $ | 222,321 | $ | 287,441 | $ | 60,479 | $ | 28,008 | $ | 1,616,999 | ||||||||||||||||||
Watch | 4,602 | 8,706 | 4,166 | 11,315 | 7,869 | 4,634 | 842 | 70 | 42,204 | |||||||||||||||||||||||||||
Substandard | 3,320 | 8,582 | 2,903 | 12,650 | 3,739 | 8,613 | 3,215 | 759 | 43,781 | |||||||||||||||||||||||||||
Total owner occupied commercial real estate | 116,307 | 419,829 | 278,715 | 260,143 | 233,929 | 300,688 | 64,536 | 28,837 | 1,702,984 | |||||||||||||||||||||||||||
Income producing commercial real estate: | ||||||||||||||||||||||||||||||||||||
Pass | 206,665 | 500,411 | 399,578 | 284,259 | 286,601 | 258,605 | 37,060 | 9,820 | 1,982,999 | |||||||||||||||||||||||||||
Watch | 6,665 | 12,955 | 9,885 | 4,214 | 8,775 | 2,989 | — | 1,807 | 47,290 | |||||||||||||||||||||||||||
Substandard | 10,632 | 13,890 | 2,662 | 4,117 | 228 | 2,577 | — | 107 | 34,213 | |||||||||||||||||||||||||||
Total income producing commercial real estate | 223,962 | 527,256 | 412,125 | 292,590 | 295,604 | 264,171 | 37,060 | 11,734 | 2,064,502 | |||||||||||||||||||||||||||
Commercial & industrial | ||||||||||||||||||||||||||||||||||||
Pass | 87,261 | 267,166 | 240,535 | 125,838 | 93,442 | 63,150 | 361,419 | 9,674 | 1,248,485 | |||||||||||||||||||||||||||
Watch | 1,066 | 807 | 2,725 | 620 | 883 | 53 | 16,140 | 147 | 22,441 | |||||||||||||||||||||||||||
Substandard | 44 | 9,345 | 1,554 | 2,340 | 2,726 | 1,606 | 20,796 | 775 | 39,186 | |||||||||||||||||||||||||||
Total commercial & industrial | 88,371 | 277,318 | 244,814 | 128,798 | 97,051 | 64,809 | 398,355 | 10,596 | 1,310,112 | |||||||||||||||||||||||||||
Commercial construction | ||||||||||||||||||||||||||||||||||||
Pass | 90,555 | 246,335 | 313,984 | 163,033 | 91,830 | 19,976 | 15,565 | 7,600 | 948,878 | |||||||||||||||||||||||||||
Watch | 306 | 940 | 994 | 181 | 49 | 401 | — | — | 2,871 | |||||||||||||||||||||||||||
Substandard | 1,205 | 2,609 | 550 | 387 | 950 | 438 | — | 1,430 | 7,569 | |||||||||||||||||||||||||||
Total commercial construction | 92,066 | 249,884 | 315,528 | 163,601 | 92,829 | 20,815 | 15,565 | 9,030 | 959,318 | |||||||||||||||||||||||||||
Equipment financing: | ||||||||||||||||||||||||||||||||||||
Pass | 124,870 | 353,441 | 187,366 | 67,279 | 21,377 | 3,510 | — | — | 757,843 | |||||||||||||||||||||||||||
Substandard | — | 817 | 1,421 | 627 | 180 | 64 | — | — | 3,109 | |||||||||||||||||||||||||||
Total equipment financing | 124,870 | 354,258 | 188,787 | 67,906 | 21,557 | 3,574 | — | — | 760,952 | |||||||||||||||||||||||||||
Residential mortgage: | ||||||||||||||||||||||||||||||||||||
Pass | 86,068 | 251,157 | 188,207 | 164,654 | 134,189 | 279,723 | 11 | 8,009 | 1,112,018 | |||||||||||||||||||||||||||
Substandard | 832 | 2,103 | 2,927 | 1,520 | 891 | 7,337 | — | 360 | 15,970 | |||||||||||||||||||||||||||
Total residential mortgage | 86,900 | 253,260 | 191,134 | 166,174 | 135,080 | 287,060 | 11 | 8,369 | 1,127,988 | |||||||||||||||||||||||||||
Home equity lines of credit | ||||||||||||||||||||||||||||||||||||
Pass | — | — | — | — | — | — | 645,874 | 18,111 | 663,985 | |||||||||||||||||||||||||||
Substandard | — | — | — | — | — | — | 226 | 4,171 | 4,397 | |||||||||||||||||||||||||||
Total home equity lines of credit | — | — | — | — | — | — | 646,100 | 22,282 | 668,382 | |||||||||||||||||||||||||||
Residential construction | ||||||||||||||||||||||||||||||||||||
Pass | 34,849 | 137,032 | 13,603 | 5,911 | 5,171 | 18,480 | — | 162 | 215,208 | |||||||||||||||||||||||||||
Substandard | — | 173 | 133 | 25 | 127 | 330 | — | — | 788 | |||||||||||||||||||||||||||
Total residential construction | 34,849 | 137,205 | 13,736 | 5,936 | 5,298 | 18,810 | — | 162 | 215,996 | |||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||
Pass | 16,878 | 45,895 | 25,917 | 10,217 | 7,199 | 3,947 | 14,567 | 97 | 124,717 | |||||||||||||||||||||||||||
Watch | — | — | — | — | — | — | 7 | — | 7 | |||||||||||||||||||||||||||
Substandard | 26 | 71 | 82 | 74 | 69 | 52 | 91 | 1 | 466 | |||||||||||||||||||||||||||
Total consumer | 16,904 | 45,966 | 25,999 | 10,291 | 7,268 | 3,999 | 14,665 | 98 | 125,190 | |||||||||||||||||||||||||||
Total loans | ||||||||||||||||||||||||||||||||||||
Pass | 755,531 | 2,203,978 | 1,640,836 | 1,057,369 | 862,130 | 934,832 | 1,134,975 | 81,481 | 8,671,132 | |||||||||||||||||||||||||||
Watch | 12,639 | 23,408 | 17,770 | 16,330 | 17,576 | 8,077 | 16,989 | 2,024 | 114,813 | |||||||||||||||||||||||||||
Substandard | 16,059 | 37,590 | 12,232 | 21,740 | 8,910 | 21,017 | 24,328 | 7,603 | 149,479 | |||||||||||||||||||||||||||
Total loans | $ | 784,229 | $ | 2,264,976 | $ | 1,670,838 | $ | 1,095,439 | $ | 888,616 | $ | 963,926 | $ | 1,176,292 | $ | 91,108 | $ | 8,935,424 | ||||||||||||||||||
As of December 31, 2019 | ||||||||||||||||||||
Pass | Watch | Substandard | Doubtful / Loss | Total | ||||||||||||||||
Owner occupied commercial real estate | $ | 1,638,398 | $ | 24,563 | $ | 48,720 | $ | — | $ | 1,711,681 | ||||||||||
Income producing commercial real estate | 1,914,524 | 40,676 | 25,522 | — | 1,980,722 | |||||||||||||||
Commercial & industrial | 1,156,366 | 16,385 | 47,580 | — | 1,220,331 | |||||||||||||||
Commercial construction | 960,251 | 2,298 | 6,804 | — | 969,353 | |||||||||||||||
Equipment financing | 737,418 | — | 3,141 | — | 740,559 | |||||||||||||||
Total commercial | 6,406,957 | 83,922 | 131,767 | — | 6,622,646 | |||||||||||||||
Residential mortgage | 1,093,902 | — | 14,135 | — | 1,108,037 | |||||||||||||||
Home equity lines of credit | 654,619 | — | 4,646 | — | 659,265 | |||||||||||||||
Residential construction | 234,791 | — | 1,272 | — | 236,063 | |||||||||||||||
Consumer | 127,507 | 8 | 381 | — | 127,896 | |||||||||||||||
Total loans, excluding PCI loans | 8,517,776 | 83,930 | 152,201 | — | 8,753,907 | |||||||||||||||
Owner occupied commercial real estate | 3,238 | 2,797 | 2,511 | — | 8,546 | |||||||||||||||
Income producing commercial real estate | 19,648 | 6,305 | 1,275 | — | 27,228 | |||||||||||||||
Commercial & industrial | 104 | 81 | 141 | — | 326 | |||||||||||||||
Commercial construction | 3,628 | 590 | 2,644 | — | 6,862 | |||||||||||||||
Equipment financing | 3,952 | — | 33 | — | 3,985 | |||||||||||||||
Total commercial | 30,570 | 9,773 | 6,604 | — | 46,947 | |||||||||||||||
Residential mortgage | 8,112 | — | 1,467 | — | 9,579 | |||||||||||||||
Home equity lines of credit | 1,350 | — | 60 | — | 1,410 | |||||||||||||||
Residential construction | 348 | — | 26 | — | 374 | |||||||||||||||
Consumer | 303 | — | 33 | — | 336 | |||||||||||||||
Total PCI loans | 40,683 | 9,773 | 8,190 | — | 58,646 | |||||||||||||||
Total loan portfolio | $ | 8,558,459 | $ | 93,703 | $ | 160,391 | $ | — | $ | 8,812,553 |
Pass | Watch | Substandard | Doubtful / Loss | Total | ||||||||||||||||
As of March 31, 2019 | ||||||||||||||||||||
Owner occupied commercial real estate | $ | 1,557,510 | $ | 17,511 | $ | 36,443 | $ | — | $ | 1,611,464 | ||||||||||
Income producing commercial real estate | 1,789,063 | 22,548 | 19,717 | — | 1,831,328 | |||||||||||||||
Commercial & industrial | 1,253,268 | 7,517 | 22,739 | — | 1,283,524 | |||||||||||||||
Commercial construction | 846,902 | 6,767 | 6,393 | — | 860,062 | |||||||||||||||
Equipment financing | 597,430 | — | 1,813 | — | 599,243 | |||||||||||||||
Total commercial | 6,044,173 | 54,343 | 87,105 | — | 6,185,621 | |||||||||||||||
Residential mortgage | 1,043,447 | — | 11,588 | — | 1,055,035 | |||||||||||||||
Home equity lines of credit | 678,578 | — | 3,724 | — | 682,302 | |||||||||||||||
Residential construction | 199,570 | — | 557 | — | 200,127 | |||||||||||||||
Consumer direct | 120,465 | — | 233 | — | 120,698 | |||||||||||||||
Indirect auto | 178,740 | — | 2,013 | — | 180,753 | |||||||||||||||
Total loans, excluding PCI loans | 8,264,973 | 54,343 | 105,220 | — | 8,424,536 | |||||||||||||||
Owner occupied commercial real estate | 2,803 | 2,781 | 3,020 | — | 8,604 | |||||||||||||||
Income producing commercial real estate | 23,872 | 11,389 | 836 | — | 36,097 | |||||||||||||||
Commercial & industrial | 246 | 43 | 52 | — | 341 | |||||||||||||||
Commercial construction | 3,340 | 165 | 2,099 | — | 5,604 | |||||||||||||||
Equipment financing | 6,626 | — | 115 | — | 6,741 | |||||||||||||||
Total commercial | 36,887 | 14,378 | 6,122 | — | 57,387 | |||||||||||||||
Residential mortgage | 6,512 | — | 2,293 | — | 8,805 | |||||||||||||||
Home equity lines of credit | 1,350 | — | 119 | — | 1,469 | |||||||||||||||
Residential construction | 542 | — | 39 | — | 581 | |||||||||||||||
Consumer direct | 440 | — | 36 | — | 476 | |||||||||||||||
Indirect auto | — | — | — | — | — | |||||||||||||||
Total PCI loans | 45,731 | 14,378 | 8,609 | — | 68,718 | |||||||||||||||
Total loan portfolio | $ | 8,310,704 | $ | 68,721 | $ | 113,829 | $ | — | $ | 8,493,254 | ||||||||||
As of December 31, 2018 | ||||||||||||||||||||
Owner occupied commercial real estate | $ | 1,585,797 | $ | 16,651 | $ | 35,604 | $ | — | $ | 1,638,052 | ||||||||||
Income producing commercial real estate | 1,735,456 | 20,923 | 17,730 | — | 1,774,109 | |||||||||||||||
Commercial & industrial | 1,247,206 | 8,430 | 22,303 | — | 1,277,939 | |||||||||||||||
Commercial construction | 777,780 | 4,533 | 7,938 | — | 790,251 | |||||||||||||||
Equipment financing | 553,995 | — | 2,677 | — | 556,672 | |||||||||||||||
Total commercial | 5,900,234 | 50,537 | 86,252 | — | 6,037,023 | |||||||||||||||
Residential mortgage | 1,028,660 | — | 11,422 | — | 1,040,082 | |||||||||||||||
Home equity lines of credit | 688,493 | — | 3,905 | — | 692,398 | |||||||||||||||
Residential construction | 209,744 | — | 533 | — | 210,277 | |||||||||||||||
Consumer direct | 121,247 | 19 | 214 | — | 121,480 | |||||||||||||||
Indirect auto | 205,632 | — | 2,060 | — | 207,692 | |||||||||||||||
Total loans, excluding PCI loans | 8,154,010 | 50,556 | 104,386 | — | 8,308,952 | |||||||||||||||
Owner occupied commercial real estate | 3,352 | 2,774 | 3,726 | — | 9,852 | |||||||||||||||
Income producing commercial real estate | 23,430 | 13,403 | 1,478 | — | 38,311 | |||||||||||||||
Commercial & industrial | 266 | 48 | 94 | — | 408 | |||||||||||||||
Commercial construction | 3,503 | 188 | 2,216 | — | 5,907 | |||||||||||||||
Equipment financing | 7,725 | — | 217 | — | 7,942 | |||||||||||||||
Total commercial | 38,276 | 16,413 | 7,731 | — | 62,420 | |||||||||||||||
Residential mortgage | 6,914 | — | 2,236 | — | 9,150 | |||||||||||||||
Home equity lines of credit | 1,492 | — | 120 | — | 1,612 | |||||||||||||||
Residential construction | 687 | — | 47 | — | 734 | |||||||||||||||
Consumer direct | 493 | — | 40 | — | 533 | |||||||||||||||
Indirect auto | — | — | — | — | — | |||||||||||||||
Total PCI loans | 47,862 | 16,413 | 10,174 | — | 74,449 | |||||||||||||||
Total loan portfolio | $ | 8,201,872 | $ | 66,969 | $ | 114,560 | $ | — | $ | 8,383,401 |
New TDRs | ||||||||||||||||||||||||||||||
Pre-modification Outstanding Amortized Cost | Post-Modification Outstanding Amortized Cost by Type of Modification | TDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted | ||||||||||||||||||||||||||||
Number of Contracts | Rate Reduction | Structure | Other | Total | Number of Contracts | Amortized Cost | ||||||||||||||||||||||||
Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||
Owner occupied commercial real estate | 1 | $ | 1,008 | $ | — | $ | — | $ | 990 | $ | 990 | — | $ | — | ||||||||||||||||
Income producing commercial real estate | 3 | 235 | — | 67 | 165 | 232 | — | — | ||||||||||||||||||||||
Commercial & industrial | — | — | — | — | — | — | 1 | 6 | ||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Equipment financing | 7 | 434 | — | 434 | — | 434 | — | — | ||||||||||||||||||||||
Total commercial | 11 | 1,677 | — | 501 | 1,155 | 1,656 | 1 | 6 | ||||||||||||||||||||||
Residential mortgage | 5 | 302 | — | 278 | — | 278 | — | — | ||||||||||||||||||||||
Home equity lines of credit | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consumer | 2 | 11 | — | — | 11 | 11 | 1 | 3 | ||||||||||||||||||||||
Total loans | 18 | $ | 1,990 | $ | — | $ | 779 | $ | 1,166 | $ | 1,945 | 2 | $ | 9 | ||||||||||||||||
Three Months Ended March 31, 2019 | ||||||||||||||||||||||||||||||
Owner occupied commercial real estate | — | $ | — | $ | — | $ | — | $ | — | $ | — | — | $ | — | ||||||||||||||||
Income producing commercial real estate | 1 | 169 | — | 169 | — | 169 | — | — | ||||||||||||||||||||||
Commercial & industrial | 1 | 7 | — | — | 7 | 7 | — | — | ||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Equipment financing | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total commercial | 2 | 176 | — | 169 | 7 | 176 | — | — | ||||||||||||||||||||||
Residential mortgage | 2 | 345 | — | 344 | — | 344 | — | — | ||||||||||||||||||||||
Home equity lines of credit | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consumer direct | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Indirect auto | 6 | 66 | — | — | 57 | 57 | — | — | ||||||||||||||||||||||
Total loans | 10 | $ | 587 | $ | — | $ | 513 | $ | 64 | $ | 577 | — | $ | — |
CECL | Incurred Loss | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 Balance | Adoption of CECL | January 1, 2020 Balance | Charge-Offs | Recoveries | (Release) Provision | Ending Balance | Beginning Balance | Charge- Offs | Recoveries | (Release) Provision | Ending Balance | |||||||||||||||||||||||||||||||||||||
Owner occupied commercial real estate | $ | 11,404 | $ | (1,616 | ) | $ | 9,788 | $ | (6 | ) | $ | 1,034 | $ | 184 | $ | 11,000 | $ | 12,207 | $ | (5 | ) | $ | 69 | $ | (397 | ) | $ | 11,874 | ||||||||||||||||||||
Income producing commercial real estate | 12,306 | (30 | ) | 12,276 | (411 | ) | 141 | 4,578 | 16,584 | 11,073 | (197 | ) | 20 | 230 | 11,126 | |||||||||||||||||||||||||||||||||
Commercial & industrial | 5,266 | 4,012 | 9,278 | (7,561 | ) | 376 | 8,738 | 10,831 | 4,802 | (1,519 | ) | 163 | 1,449 | 4,895 | ||||||||||||||||||||||||||||||||||
Commercial construction | 9,668 | (2,583 | ) | 7,085 | — | 141 | 2,330 | 9,556 | 10,337 | (69 | ) | 394 | (387 | ) | 10,275 | |||||||||||||||||||||||||||||||||
Equipment financing | 7,384 | 5,871 | 13,255 | (1,863 | ) | 356 | 2,990 | 14,738 | 5,452 | (1,424 | ) | 143 | 2,060 | 6,231 | ||||||||||||||||||||||||||||||||||
Residential mortgage | 8,081 | 1,569 | 9,650 | (284 | ) | 275 | 1,422 | 11,063 | 8,295 | (61 | ) | 48 | 63 | 8,345 | ||||||||||||||||||||||||||||||||||
Home equity lines of credit | 4,575 | 1,919 | 6,494 | (20 | ) | 103 | 310 | 6,887 | 4,752 | (337 | ) | 122 | 260 | 4,797 | ||||||||||||||||||||||||||||||||||
Residential construction | 2,504 | (1,771 | ) | 733 | (22 | ) | 34 | 71 | 816 | 2,433 | (4 | ) | 26 | (65 | ) | 2,390 | ||||||||||||||||||||||||||||||||
Consumer | 901 | (491 | ) | 410 | (638 | ) | 231 | 427 | 430 | 853 | (547 | ) | 207 | 324 | 837 | |||||||||||||||||||||||||||||||||
Indirect auto | — | — | — | — | — | — | — | 999 | (197 | ) | 38 | 32 | 872 | |||||||||||||||||||||||||||||||||||
Total allowance for credit losses - loans | 62,089 | 6,880 | 68,969 | (10,805 | ) | 2,691 | 21,050 | 81,905 | 61,203 | (4,360 | ) | 1,230 | 3,569 | 61,642 | ||||||||||||||||||||||||||||||||||
Allowance for unfunded commitments | 3,458 | 1,871 | 5,329 | — | — | 1,141 | 6,470 | 3,410 | — | — | (269 | ) | 3,141 | |||||||||||||||||||||||||||||||||||
Total allowance for credit losses | $ | 65,547 | $ | 8,751 | $ | 74,298 | $ | (10,805 | ) | $ | 2,691 | $ | 22,191 | $ | 88,375 | $ | 64,613 | $ | (4,360 | ) | $ | 1,230 | $ | 3,300 | $ | 64,783 |
Loans Outstanding | Allowance for Credit Losses | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | Collectively evaluated for impairment | PCI | Ending Balance | Individually evaluated for impairment | Collectively evaluated for impairment | PCI | Ending Balance | ||||||||||||||||||||||||
Owner occupied commercial real estate | $ | 19,233 | $ | 1,692,448 | $ | 8,546 | $ | 1,720,227 | $ | 816 | $ | 10,483 | $ | 105 | $ | 11,404 | |||||||||||||||
Income producing commercial real estate | 18,134 | 1,962,588 | 27,228 | 2,007,950 | 770 | 11,507 | 29 | 12,306 | |||||||||||||||||||||||
Commercial & industrial | 1,449 | 1,218,882 | 326 | 1,220,657 | 21 | 5,193 | 52 | 5,266 | |||||||||||||||||||||||
Commercial construction | 3,675 | 965,678 | 6,862 | 976,215 | 55 | 9,613 | — | 9,668 | |||||||||||||||||||||||
Equipment financing | 1,027 | 739,532 | 3,985 | 744,544 | — | 7,240 | 144 | 7,384 | |||||||||||||||||||||||
Residential mortgage | 15,991 | 1,092,046 | 9,579 | 1,117,616 | 782 | 7,296 | 3 | 8,081 | |||||||||||||||||||||||
Home equity lines of credit | 992 | 658,273 | 1,410 | 660,675 | 16 | 4,541 | 18 | 4,575 | |||||||||||||||||||||||
Residential construction | 1,256 | 234,807 | 374 | 236,437 | 47 | 2,456 | 1 | 2,504 | |||||||||||||||||||||||
Consumer | 214 | 127,682 | 336 | 128,232 | 5 | 885 | 11 | 901 | |||||||||||||||||||||||
Total | $ | 61,971 | $ | 8,691,936 | $ | 58,646 | $ | 8,812,553 | 2,512 | 59,214 | 363 | 62,089 | |||||||||||||||||||
Allowance for unfunded commitments | — | 3,458 | — | 3,458 | |||||||||||||||||||||||||||
Total allowance for credit losses | $ | 2,512 | $ | 62,672 | $ | 363 | $ | 65,547 |
December 31, 2019 | |||||||||||||
Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | |||||||||||
With no related allowance recorded: | |||||||||||||
Owner occupied commercial real estate | $ | 9,527 | $ | 8,118 | $ | — | |||||||
Income producing commercial real estate | 5,159 | 4,956 | — | ||||||||||
Commercial & industrial | 1,144 | 890 | — | ||||||||||
Commercial construction | 2,458 | 2,140 | — | ||||||||||
Equipment financing | 1,027 | 1,027 | — | ||||||||||
Total commercial | 19,315 | 17,131 | — | ||||||||||
Residential mortgage | 7,362 | 6,436 | — | ||||||||||
Home equity lines of credit | 1,116 | 861 | — | ||||||||||
Residential construction | 731 | 626 | — | ||||||||||
Consumer | 66 | 53 | — | ||||||||||
Total with no related allowance recorded | 28,590 | 25,107 | — | ||||||||||
With an allowance recorded: | |||||||||||||
Owner occupied commercial real estate | 11,136 | 11,115 | 816 | ||||||||||
Income producing commercial real estate | 13,591 | 13,178 | 770 | ||||||||||
Commercial & industrial | 559 | 559 | 21 | ||||||||||
Commercial construction | 1,535 | 1,535 | 55 | ||||||||||
Equipment financing | — | — | — | ||||||||||
Total commercial | 26,821 | 26,387 | 1,662 | ||||||||||
Residential mortgage | 9,624 | 9,555 | 782 | ||||||||||
Home equity lines of credit | 146 | 131 | 16 | ||||||||||
Residential construction | 643 | 630 | 47 | ||||||||||
Consumer | 161 | 161 | 5 | ||||||||||
Total with an allowance recorded | 37,395 | 36,864 | 2,512 | ||||||||||
Total | $ | 65,985 | $ | 61,971 | $ | 2,512 |
Three Months Ended March 31, 2019 | ||||||||||||||
Average Balance | Interest Revenue Recognized During Impairment | Cash Basis Interest Revenue Received | ||||||||||||
Owner occupied commercial real estate | $ | 17,410 | $ | 285 | $ | 284 | ||||||||
Income producing commercial real estate | 14,237 | 193 | 207 | |||||||||||
Commercial & industrial | 1,716 | 19 | 19 | |||||||||||
Commercial construction | 2,402 | 34 | 33 | |||||||||||
Equipment financing | — | — | — | |||||||||||
Total commercial | 35,765 | 531 | 543 | |||||||||||
Residential mortgage | 15,502 | 168 | 174 | |||||||||||
Home equity lines of credit | 258 | 4 | 3 | |||||||||||
Residential construction | 1,408 | 24 | 23 | |||||||||||
Consumer | 205 | 4 | 4 | |||||||||||
Indirect auto | 1,190 | 14 | 14 | |||||||||||
Total | $ | 54,328 | $ | 745 | $ | 761 |
Details about Accumulated Other Comprehensive Income Components | Three Months Ended March 31, | Affected Line Item in the Statement Where Net Income is Presented | ||||||||
2020 | 2019 | |||||||||
Realized losses on available-for-sale securities: | ||||||||||
$ | — | $ | (267 | ) | Securities losses, net | |||||
— | 68 | Income tax benefit | ||||||||
$ | — | $ | (199 | ) | Net of tax | |||||
Amortization of losses included in net income on available-for-sale securities transferred to held-to-maturity: | ||||||||||
$ | (83 | ) | $ | (84 | ) | Investment securities interest revenue | ||||
20 | 20 | Income tax benefit | ||||||||
$ | (63 | ) | $ | (64 | ) | Net of tax | ||||
Amortization of losses included in net income on derivative financial instruments accounted for as cash flow hedges: | ||||||||||
Amortization of losses on de-designated positions | $ | — | $ | (102 | ) | Deposit interest expense | ||||
— | 26 | Income tax benefit | ||||||||
$ | — | $ | (76 | ) | Net of tax | |||||
Reclassifications related to defined benefit pension plan activity: | ||||||||||
Prior service cost | $ | (133 | ) | $ | (159 | ) | Salaries and employee benefits expense | |||
Actuarial losses | (81 | ) | (15 | ) | Other expense | |||||
(214 | ) | (174 | ) | Total before tax | ||||||
54 | 44 | Income tax benefit | ||||||||
$ | (160 | ) | $ | (130 | ) | Net of tax | ||||
Total reclassifications for the period | $ | (223 | ) | $ | (469 | ) | Net of tax |
Details about Accumulated Other Comprehensive Income Components | Three Months Ended March 31, | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||
2019 | 2018 | |||||||||||
Realized losses on available-for-sale securities: | ||||||||||||
$ | (267 | ) | $ | (940 | ) | Securities losses, net | ||||||
68 | 221 | Income tax benefit | ||||||||||
$ | (199 | ) | $ | (719 | ) | Net of tax | ||||||
Amortization of losses included in net income on available-for-sale securities transferred to held-to-maturity: | ||||||||||||
$ | (84 | ) | $ | (222 | ) | Investment securities interest revenue | ||||||
20 | 54 | Income tax benefit | ||||||||||
$ | (64 | ) | $ | (168 | ) | Net of tax | ||||||
Amortization of losses included in net income on derivative financial instruments accounted for as cash flow hedges: | ||||||||||||
Amortization of losses on de-designated positions | $ | (102 | ) | $ | (147 | ) | Money market deposit interest expense | |||||
26 | 38 | Income tax benefit | ||||||||||
$ | (76 | ) | $ | (109 | ) | Net of tax | ||||||
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan: | ||||||||||||
Prior service cost | $ | (159 | ) | $ | (167 | ) | Salaries and employee benefits expense | |||||
Actuarial losses | (15 | ) | — | Other expense | ||||||||
Actuarial losses | — | (60 | ) | Salaries and employee benefits expense | ||||||||
(174 | ) | (227 | ) | Total before tax | ||||||||
44 | 58 | Income tax benefit | ||||||||||
$ | (130 | ) | $ | (169 | ) | Net of tax | ||||||
Total reclassifications for the period | $ | (469 | ) | $ | (1,165 | ) | Net of tax |
Three Months Ended March 31, | |||||||||
2020 | 2019 | ||||||||
Net income | $ | 31,884 | $ | 44,262 | |||||
Dividends and undistributed earnings allocated to unvested shares | (243 | ) | (315 | ) | |||||
Net income available to common shareholders | $ | 31,641 | $ | 43,947 | |||||
Weighted average shares outstanding: | |||||||||
Basic | 79,340 | 79,807 | |||||||
Effect of dilutive securities | |||||||||
Stock options | — | 3 | |||||||
Restricted stock units | 106 | 3 | |||||||
Diluted | 79,446 | 79,813 | |||||||
Net income per common share: | |||||||||
Basic | $ | 0.40 | $ | 0.55 | |||||
Diluted | $ | 0.40 | $ | 0.55 |
Three Months Ended March 31, | |||||||||
2019 | 2018 | ||||||||
Net income | $ | 44,262 | $ | 37,658 | |||||
Dividends and undistributed earnings allocated to unvested shares | (315 | ) | (277 | ) | |||||
Net income available to common shareholders | $ | 43,947 | $ | 37,381 | |||||
Weighted average shares outstanding: | |||||||||
Basic | 79,807 | 79,205 | |||||||
Effect of dilutive securities | |||||||||
Stock options | 3 | 10 | |||||||
Restricted stock units | 3 | — | |||||||
Diluted | 79,813 | 79,215 | |||||||
Net income per common share: | |||||||||
Basic | $ | 0.55 | $ | 0.47 | |||||
Diluted | $ | 0.55 | $ | 0.47 |
March 31, 2020 | December 31, 2019 | |||||||||||||||
Derivative Asset | Derivative Liability | Derivative Asset | Derivative Liability | |||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||
Fair value hedge of brokered time deposits | $ | — | $ | 144 | $ | — | $ | 880 | ||||||||
Total | $ | — | $ | 144 | $ | — | $ | 880 | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Customer derivative positions | $ | 74,793 | $ | 33 | $ | 27,277 | $ | 446 | ||||||||
Dealer offsets to customer derivative positions | 33 | 20,318 | 394 | 6,425 | ||||||||||||
Risk participations | — | 28 | — | 12 | ||||||||||||
Mortgage banking - loan commitment | 7,361 | — | 1,970 | — | ||||||||||||
Mortgage banking - forward sales commitment | 481 | 4,281 | 98 | 86 | ||||||||||||
Bifurcated embedded derivatives | — | 538 | 5,268 | — | ||||||||||||
Dealer offsets to bifurcated embedded derivatives | — | 2,007 | — | 7,667 | ||||||||||||
Total | $ | 82,668 | $ | 27,205 | $ | 35,007 | $ | 14,636 | ||||||||
Total derivatives | $ | 82,668 | $ | 27,349 | $ | 35,007 | $ | 15,516 | ||||||||
Total gross derivative instruments | $ | 82,668 | $ | 27,349 | $ | 35,007 | $ | 15,516 | ||||||||
Less: Amounts subject to master netting agreements | (50 | ) | (50 | ) | (401 | ) | (401 | ) | ||||||||
Less: Cash collateral received/pledged | — | (23,718 | ) | — | (14,933 | ) | ||||||||||
Net amount | $ | 82,618 | $ | 3,581 | $ | 34,606 | $ | 182 |
Interest Rate Products | Balance Sheet Location | March 31, 2019 | December 31, 2018 | |||||||
Fair value hedge of brokered CDs | Derivative liabilities | $ | 1,251 | $ | 1,682 | |||||
$ | 1,251 | $ | 1,682 |
Interest Rate Products | Balance Sheet Location | March 31, 2019 | December 31, 2018 | |||||||
Customer derivative positions | Derivative assets | $ | 12,658 | $ | 5,216 | |||||
Dealer offsets to customer derivative positions | Derivative assets | 3,691 | 7,620 | |||||||
Mortgage banking - loan commitment | Derivative assets | 1,796 | 1,190 | |||||||
Mortgage banking - forward sales commitment | Derivative assets | 14 | 28 | |||||||
Bifurcated embedded derivatives | Derivative assets | 7,765 | 10,651 | |||||||
$ | 25,924 | $ | 24,705 | |||||||
Customer derivative positions | Derivative liabilities | $ | 4,118 | $ | 9,661 | |||||
Dealer offsets to customer derivative positions | Derivative liabilities | 2,744 | 781 | |||||||
Risk participations | Derivative liabilities | 6 | 8 | |||||||
Mortgage banking - forward sales commitment | Derivative liabilities | 483 | 259 | |||||||
Dealer offsets to bifurcated embedded derivatives | Derivative liabilities | 10,187 | 13,339 | |||||||
De-designated hedges | Derivative liabilities | — | 703 | |||||||
$ | 17,538 | $ | 24,751 |
Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Hedged Item | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||
Fair value hedges of brokered CDs | Interest expense | $ | 451 | $ | (693 | ) | $ | (462 | ) | $ | 545 | |||||||
Fair value hedges of corporate bonds | Interest revenue | — | (336 | ) | — | 405 | ||||||||||||
$ | 451 | $ | (1,029 | ) | $ | (462 | ) | $ | 950 |
Interest expense - deposits | ||||||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Total amounts presented in the consolidated statements of income | $ | 15,075 | $ | 15,957 | ||||
Gains (losses) on fair value hedging relationships: | ||||||||
Interest rate contracts: | ||||||||
Amounts related to interest settlements on derivatives | (75 | ) | (101 | ) | ||||
Recognized on derivatives | 1,062 | 451 | ||||||
Recognized on hedged items | (982 | ) | (462 | ) | ||||
Net income (expense) recognized on fair value hedges | $ | 5 | $ | (112 | ) |
March 31, 2020 | December 31, 2019 | |||||||||||||||
Balance Sheet Location | Carrying amount of Assets (Liabilities) | Hedge Accounting Basis Adjustment | Carrying amount of Assets (Liabilities) | Hedge Accounting Basis Adjustment | ||||||||||||
Deposits | $ | (27,017 | ) | $ | (324 | ) | $ | (35,880 | ) | $ | 645 |
Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Derivative | |||||||||
2020 | 2019 | |||||||||
Three Months Ended March 31, | ||||||||||
Customer derivatives and dealer offsets | Other noninterest income | $ | 1,424 | $ | 503 | |||||
Bifurcated embedded derivatives and dealer offsets | Other noninterest income | (195 | ) | 218 | ||||||
De-designated hedges | Other noninterest income | — | (193 | ) | ||||||
Mortgage banking derivatives | Mortgage loan revenue | (829 | ) | (190 | ) | |||||
Risk participations | Other noninterest income | (17 | ) | 2 | ||||||
$ | 383 | $ | 340 |
Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Derivative | |||||||||
2019 | 2018 | |||||||||
Three Months Ended March 31, | ||||||||||
Customer derivatives and dealer offsets | Other noninterest income | $ | 503 | $ | 772 | |||||
Bifurcated embedded derivatives and dealer offsets | Other noninterest income | 218 | 370 | |||||||
Interest rate caps | Other noninterest income | — | 276 | |||||||
De-designated hedges | Other noninterest income | (193 | ) | (67 | ) | |||||
Mortgage banking derivatives | Mortgage loan revenue | (190 | ) | 1,264 | ||||||
Risk participations | Other noninterest income | 2 | (2 | ) | ||||||
$ | 340 | $ | 2,613 |
Options | Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value ($000) | |||||||||
Outstanding at December 31, 2019 | 1,500 | $ | 27.95 | ||||||||||
Expired | (500 | ) | 22.95 | ||||||||||
Outstanding at March 31, 2020 | 1,000 | 30.45 | 0.04 | $ | — | ||||||||
Exercisable at March 31, 2020 | 1,000 | 30.45 | 0.04 | — |
Options | Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value ($000) | |||||||||
Outstanding at December 31, 2018 | 47,139 | $ | 27.07 | ||||||||||
Exercised | (12,000 | ) | 16.44 | ||||||||||
Cancelled/forfeited | (504 | ) | 31.50 | ||||||||||
Expired | (1,023 | ) | 29.45 | ||||||||||
Outstanding at March 31, 2019 | 33,612 | 30.72 | 0.4 | $ | 13 | ||||||||
Exercisable at March 31, 2019 | 33,612 | 30.72 | 0.4 | 13 |
Restricted Stock Unit Awards | Shares | Weighted- Average Grant- Date Fair Value | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value ($000) | |||||||||
Outstanding at December 31, 2019 | 808,424 | $ | 27.94 | ||||||||||
Granted | 38,988 | 25.39 | |||||||||||
Vested | (64,912 | ) | 27.83 | $ | 1,870 | ||||||||
Cancelled | (17,672 | ) | 26.44 | ||||||||||
Outstanding at March 31, 2020 | 764,828 | 27.85 | 4.0 | 14,004 |
Restricted Stock Unit Awards | Shares | Weighted- Average Grant- Date Fair Value | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value ($000) | |||||||||
Outstanding at December 31, 2018 | 759,746 | $ | 27.66 | ||||||||||
Granted | 37,994 | 25.67 | |||||||||||
Vested | (46,628 | ) | 25.72 | $ | 1,322 | ||||||||
Cancelled | (14,284 | ) | 25.30 | ||||||||||
Outstanding at March 31, 2019 | 736,828 | 27.72 | 4.2 | 18,369 |
March 31, 2019 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
March 31, 2020 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Debt securities available for sale: | ||||||||||||||||||||||||||||||||
Debt securities available-for-sale: | ||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 141,855 | $ | — | $ | — | $ | 141,855 | $ | 158,964 | $ | — | $ | — | $ | 158,964 | ||||||||||||||||
U.S. Government agencies | — | 5,101 | — | 5,101 | — | 2,967 | — | 2,967 | ||||||||||||||||||||||||
State and political subdivisions | — | 222,180 | — | 222,180 | — | 227,681 | — | 227,681 | ||||||||||||||||||||||||
Residential mortgage-backed securities | — | 1,414,085 | — | 1,414,085 | — | 1,297,591 | — | 1,297,591 | ||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 343,339 | — | 343,339 | — | 267,789 | — | 267,789 | ||||||||||||||||||||||||
Corporate bonds | — | 199,681 | 995 | 200,676 | — | 190,785 | — | 190,785 | ||||||||||||||||||||||||
Asset-backed securities | — | 127,389 | — | 127,389 | — | 104,099 | — | 104,099 | ||||||||||||||||||||||||
Equity securities with readily available fair values | 910 | — | — | 910 | 1,338 | — | — | 1,338 | ||||||||||||||||||||||||
Mortgage loans held for sale | — | 26,341 | — | 26,341 | — | 89,959 | — | 89,959 | ||||||||||||||||||||||||
Deferred compensation plan assets | 7,129 | — | — | 7,129 | 7,537 | — | — | 7,537 | ||||||||||||||||||||||||
Servicing rights for SBA/USDA loans | — | — | 7,401 | 7,401 | — | — | 6,290 | 6,290 | ||||||||||||||||||||||||
Residential mortgage servicing rights | — | — | 11,447 | 11,447 | — | — | 11,059 | 11,059 | ||||||||||||||||||||||||
Derivative financial instruments | — | 16,363 | 9,561 | 25,924 | — | 75,307 | 7,361 | 82,668 | ||||||||||||||||||||||||
Total assets | $ | 149,894 | $ | 2,354,479 | $ | 29,404 | $ | 2,533,777 | $ | 167,839 | $ | 2,256,178 | $ | 24,710 | $ | 2,448,727 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Deferred compensation plan liability | $ | 7,129 | $ | — | $ | — | $ | 7,129 | $ | 7,549 | $ | — | $ | — | $ | 7,549 | ||||||||||||||||
Derivative financial instruments | — | 7,345 | 11,444 | 18,789 | — | 24,632 | 2,717 | 27,349 | ||||||||||||||||||||||||
Total liabilities | $ | 7,129 | $ | 7,345 | $ | 11,444 | $ | 25,918 | $ | 7,549 | $ | 24,632 | $ | 2,717 | $ | 34,898 |
December 31, 2019 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Debt securities available-for-sale | ||||||||||||||||
U.S. Treasuries | $ | 154,618 | $ | — | $ | — | $ | 154,618 | ||||||||
U.S. Agencies | — | 3,035 | — | 3,035 | ||||||||||||
State and political subdivisions | — | 226,490 | — | 226,490 | ||||||||||||
Residential mortgage-backed securities | — | 1,299,025 | — | 1,299,025 | ||||||||||||
Commercial mortgage-backed securities | — | 284,953 | — | 284,953 | ||||||||||||
Corporate bonds | — | 202,093 | 998 | 203,091 | ||||||||||||
Asset-backed securities | — | 103,369 | — | 103,369 | ||||||||||||
Equity securities with readily available fair values | 1,973 | — | — | 1,973 | ||||||||||||
Mortgage loans held for sale | — | 58,484 | — | 58,484 | ||||||||||||
Deferred compensation plan assets | 8,133 | — | — | 8,133 | ||||||||||||
Servicing rights for SBA/USDA loans | — | — | 6,794 | 6,794 | ||||||||||||
Residential mortgage servicing rights | — | — | 13,565 | 13,565 | ||||||||||||
Derivative financial instruments | — | 27,769 | 7,238 | 35,007 | ||||||||||||
Total assets | $ | 164,724 | $ | 2,205,218 | $ | 28,595 | $ | 2,398,537 | ||||||||
Liabilities: | ||||||||||||||||
Deferred compensation plan liability | $ | 8,132 | $ | — | $ | — | $ | 8,132 | ||||||||
Derivative financial instruments | — | 6,957 | 8,559 | 15,516 | ||||||||||||
Total liabilities | $ | 8,132 | $ | 6,957 | $ | 8,559 | $ | 23,648 |
December 31, 2018 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Debt securities available for sale | ||||||||||||||||
U.S. Treasuries | $ | 149,307 | $ | — | $ | — | $ | 149,307 | ||||||||
U.S. Agencies | — | 25,553 | — | 25,553 | ||||||||||||
State and political subdivisions | — | 233,941 | — | 233,941 | ||||||||||||
Residential mortgage-backed securities | — | 1,445,910 | — | 1,445,910 | ||||||||||||
Commercial mortgage-backed securities | — | 391,917 | — | 391,917 | ||||||||||||
Corporate bonds | — | 198,168 | 995 | 199,163 | ||||||||||||
Asset-backed securities | — | 182,676 | — | 182,676 | ||||||||||||
Equity securities with readily available fair values | 1,076 | — | — | 1,076 | ||||||||||||
Mortgage loans held for sale | — | 18,935 | — | 18,935 | ||||||||||||
Deferred compensation plan assets | 6,404 | — | — | 6,404 | ||||||||||||
Servicing rights for SBA/USDA loans | — | — | 7,510 | 7,510 | ||||||||||||
Residential mortgage servicing rights | — | — | 11,877 | 11,877 | ||||||||||||
Derivative financial instruments | — | 12,864 | 11,841 | 24,705 | ||||||||||||
Total assets | $ | 156,787 | $ | 2,509,964 | $ | 32,223 | $ | 2,698,974 | ||||||||
Liabilities: | ||||||||||||||||
Deferred compensation plan liability | $ | 6,404 | $ | — | $ | — | $ | 6,404 | ||||||||
Derivative financial instruments | — | 10,701 | 15,732 | 26,433 | ||||||||||||
Total liabilities | $ | 6,404 | $ | 10,701 | $ | 15,732 | $ | 32,837 |
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||
Derivative Asset | Derivative Liability | Servicing rights for SBA/USDA loans | Residential mortgage servicing rights | Debt Securities Available-for-Sale | Derivative Asset | Derivative Liability | Servicing rights for SBA/USDA loans | Residential mortgage servicing rights | Debt Securities Available-for-Sale | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 7,238 | $ | 8,559 | $ | 6,794 | $ | 13,565 | $ | 998 | $ | 11,841 | $ | 15,732 | $ | 7,510 | $ | 11,877 | $ | 995 | |||||||||||||||||||
Additions | — | — | 95 | 2,115 | — | — | — | 375 | 863 | — | |||||||||||||||||||||||||||||
Sales and settlements | — | — | (307 | ) | (493 | ) | (1,000 | ) | (1,135 | ) | (2,330 | ) | (363 | ) | (150 | ) | — | ||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 2 | — | — | — | — | — | |||||||||||||||||||||||||||||
Amounts included in earnings - fair value adjustments | 123 | (5,842 | ) | (292 | ) | (4,128 | ) | — | (1,145 | ) | (1,958 | ) | (121 | ) | (1,143 | ) | — | ||||||||||||||||||||||
Balance at end of period | $ | 7,361 | $ | 2,717 | $ | 6,290 | $ | 11,059 | $ | — | $ | 9,561 | $ | 11,444 | $ | 7,401 | $ | 11,447 | $ | 995 |
Derivative Asset | Derivative Liability | Servicing rights for SBA/USDA loans | Residential mortgage servicing rights | Debt Securities Available-for-Sale | |||||||||||||||
Three Months Ended March 31, 2019 | |||||||||||||||||||
Balance at beginning of period | $ | 11,841 | $ | 15,732 | $ | 7,510 | $ | 11,877 | $ | 995 | |||||||||
Additions | — | — | 375 | 863 | — | ||||||||||||||
Sales and settlements | (1,135 | ) | (2,330 | ) | (363 | ) | (150 | ) | — | ||||||||||
Amounts included in earnings - fair value adjustments | (1,145 | ) | (1,958 | ) | (121 | ) | (1,143 | ) | — | ||||||||||
Balance at end of period | $ | 9,561 | $ | 11,444 | $ | 7,401 | $ | 11,447 | $ | 995 | |||||||||
Three Months Ended March 31, 2018 | |||||||||||||||||||
Balance at beginning of period | $ | 12,207 | $ | 16,744 | $ | 7,740 | $ | 8,262 | $ | 900 | |||||||||
Business combinations | — | — | (354 | ) | — | — | |||||||||||||
Additions | — | — | 479 | 926 | — | ||||||||||||||
Sales and settlements | (1,029 | ) | (1,347 | ) | (91 | ) | (80 | ) | — | ||||||||||
Amounts included in earnings - fair value adjustments | 2,699 | 2,391 | (304 | ) | 610 | — | |||||||||||||
Balance at end of period | $ | 13,877 | $ | 17,788 | $ | 7,470 | $ | 9,718 | $ | 900 |
Fair Value | Weighted Average | |||||||||||||||||
Level 3 Assets and Liabilities | March 31, 2020 | December 31, 2019 | Valuation Technique | March 31, 2020 | December 31, 2019 | |||||||||||||
Unobservable Inputs | ||||||||||||||||||
Servicing rights for SBA/USDA loans | $ | 6,290 | $ | 6,794 | Discounted cash flow | Discount rate | 12.0 | % | 12.3 | % | ||||||||
Prepayment rate | 17.1 | % | 16.5 | % | ||||||||||||||
Residential mortgage servicing rights | 11,059 | 13,565 | Discounted cash flow | Discount rate | 10.0 | % | 10.0 | % | ||||||||||
Prepayment rate | 19.3 | % | 14.1 | % | ||||||||||||||
Corporate bonds | — | 998 | Indicative bid provided by a broker | Multiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the company | N/A | N/A | ||||||||||||
Derivative assets - mortgage | 7,361 | 1,970 | Internal model | Pull through rate | 80.5 | % | 83.6 | % | ||||||||||
Derivative assets - other | — | 5,268 | Dealer priced | Dealer priced | N/A | N/A | ||||||||||||
Derivative liabilities - risk participations | 28 | 12 | Internal model | Probable exposure rate | 0.15 | % | 0.36 | % | ||||||||||
Probability of default rate | 1.80 | % | 1.80 | % | ||||||||||||||
Derivative liabilities - other | 2,689 | 8,547 | Dealer priced | Dealer priced | N/A | N/A |
Fair Value | Weighted Average | |||||||||||||||||
Level 3 Assets and Liabilities | March 31, 2019 | December 31, 2018 | Valuation Technique | March 31, 2019 | December 31, 2018 | |||||||||||||
Unobservable Inputs | ||||||||||||||||||
Servicing rights for SBA/USDA loans | $ | 7,401 | $ | 7,510 | Discounted cash flow | Discount rate | 13.6 | % | 14.5 | % | ||||||||
Prepayment rate | 12.5 | % | 12.1 | % | ||||||||||||||
Residential mortgage servicing rights | 11,447 | 11,877 | Discounted cash flow | Discount rate | 10.0 | % | 10.0 | % | ||||||||||
Prepayment rate | 12.8 | % | 10.6 | % | ||||||||||||||
Corporate bonds | 995 | 995 | Indicative bid provided by a broker | Multiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the company | N/A | N/A | ||||||||||||
Derivative assets - mortgage | 1,796 | 1,190 | Internal model | Pull through rate | 78.9 | % | 80.7 | % | ||||||||||
Derivative assets - other | 7,765 | 10,651 | Dealer priced | Dealer priced | N/A | N/A | ||||||||||||
Derivative liabilities - risk participations | 6 | 8 | Internal model | Probable exposure rate | 0.37 | % | 0.44 | % | ||||||||||
Probability of default rate | 1.80 | % | 1.80 | % | ||||||||||||||
Derivative liabilities - other | 11,438 | 15,724 | Dealer priced | Dealer priced | N/A | N/A |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
March 31, 2020 | ||||||||||||||||||
Loans | $ | — | $ | — | $ | 3,909 | $ | 3,909 | ||||||||||
December 31, 2019 | ||||||||||||||||||
Loans | $ | — | $ | — | $ | 20,977 | $ | 20,977 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
March 31, 2019 | ||||||||||||||||||
Loans | $ | — | $ | — | $ | 1,286 | $ | 1,286 | ||||||||||
December 31, 2018 | ||||||||||||||||||
Loans | $ | — | $ | — | $ | 8,631 | $ | 8,631 |
Fair Value Level | ||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
March 31, 2020 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Securities held-to-maturity | $ | 290,404 | $ | — | $ | 301,595 | $ | — | $ | 301,595 | ||||||||||
Loans and leases, net | 8,853,519 | — | — | 8,690,538 | 8,690,538 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | 11,034,926 | — | 11,037,183 | — | 11,037,183 | |||||||||||||||
Long-term debt | 212,849 | — | — | 213,940 | 213,940 | |||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Securities held-to-maturity | $ | 283,533 | $ | — | $ | 287,904 | $ | — | $ | 287,904 | ||||||||||
Loans and leases, net | 8,750,464 | — | — | 8,714,592 | 8,714,592 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | 10,897,244 | — | 10,897,465 | — | 10,897,465 | |||||||||||||||
Long-term debt | 212,664 | — | — | 217,665 | 217,665 |
Fair Value Level | ||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
March 31, 2019 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Securities held to maturity | $ | 265,329 | $ | — | $ | 265,117 | $ | — | $ | 265,117 | ||||||||||
Loans and leases, net | 8,431,612 | — | — | 8,401,018 | 8,401,018 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | 10,534,306 | — | 10,527,436 | — | 10,527,436 | |||||||||||||||
Federal Home Loan Bank advances | 40,000 | — | 39,998 | — | 39,998 | |||||||||||||||
Long-term debt | 257,259 | — | — | 266,468 | 266,468 | |||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Securities held to maturity | $ | 274,407 | $ | — | $ | 268,803 | $ | — | $ | 268,803 | ||||||||||
Loans and leases, net | 8,322,198 | — | — | 8,277,387 | 8,277,387 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | 10,534,513 | — | 10,528,834 | — | 10,528,834 | |||||||||||||||
Federal Home Loan Bank advances | 160,000 | — | 159,988 | — | 159,988 | |||||||||||||||
Long-term debt | 267,189 | — | — | 278,996 | 278,996 |
March 31, 2020 | December 31, 2019 | ||||||
Financial instruments whose contract amounts represent credit risk: | |||||||
Commitments to extend credit | $ | 2,079,644 | $ | 2,126,275 | |||
Letters of credit | 24,705 | 22,533 |
March 31, 2019 | December 31, 2018 | ||||||
Financial instruments whose contract amounts represent credit risk: | |||||||
Commitments to extend credit | $ | 2,053,155 | $ | 2,129,463 | |||
Letters of credit | 26,867 | 25,447 |
Income Statement Location | Three Months Ended March 31, 2019 | |||||||
Operating lease cost | Occupancy expense | $ | 1,258 | |||||
Variable lease cost | Occupancy expense | 111 | ||||||
Short-term lease cost | Occupancy expense | 19 | ||||||
Sublease income | Occupancy expense | (149 | ) | |||||
Net lease cost | $ | 1,239 | ||||||
Rental income from owned properties under operating leases | Other noninterest income | $ | 216 | |||||
Operating cash flows from operating leases | $ | 1,348 |
Year | ||||||
Remainder of 2019 | $ | 3,627 | ||||
2020 | 5,253 | |||||
2021 | 4,983 | |||||
2022 | 4,553 | |||||
2023 | 3,979 | |||||
Thereafter | 5,092 | |||||
Total | 27,487 | |||||
Less discount | (2,287 | ) | ||||
Present value of lease liability | $ | 25,200 |
Basel III Guidelines | United Community Banks, Inc. (Consolidated) | United Community Bank | ||||||||||||||||||||
Minimum (1) | Well Capitalized | March 31, 2020 | December 31, 2019 | March 31, 2020 | December 31, 2019 | |||||||||||||||||
Risk-based ratios: | ||||||||||||||||||||||
Common equity tier 1 capital | 4.5 | % | 6.5 | % | 12.85 | % | 12.97 | % | 13.58 | % | 14.87 | % | ||||||||||
Tier 1 capital | 6.0 | 8.0 | 13.09 | 13.21 | 13.58 | 14.87 | ||||||||||||||||
Total capital | 8.0 | 10.0 | 14.93 | 15.01 | 14.30 | 15.54 | ||||||||||||||||
Leverage ratio | 4.0 | 5.0 | 10.40 | 10.34 | 10.78 | 11.63 | ||||||||||||||||
Common equity tier 1 capital | $ | 1,283,068 | $ | 1,275,148 | $ | 1,351,820 | $ | 1,458,720 | ||||||||||||||
Tier 1 capital | 1,307,318 | 1,299,398 | 1,351,820 | 1,458,720 | ||||||||||||||||||
Total capital | 1,490,998 | 1,476,302 | 1,424,147 | 1,524,267 | ||||||||||||||||||
Risk-weighted assets | 9,983,839 | 9,834,051 | 9,957,388 | 9,810,477 | ||||||||||||||||||
Average total assets for the leverage ratio | 12,570,521 | 12,568,563 | 12,538,532 | 12,545,254 |
UNITED COMMUNITY BANKS, INC. | |||||||||||||||||||||||
Table 1 - Financial Highlights | |||||||||||||||||||||||
Selected Financial Information | |||||||||||||||||||||||
2019 | 2018 | First Quarter 2019 - 2018 Change | |||||||||||||||||||||
(in thousands, except per share data) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||
INCOME SUMMARY | |||||||||||||||||||||||
Interest revenue | $ | 136,516 | $ | 133,854 | $ | 128,721 | $ | 122,215 | $ | 115,290 | |||||||||||||
Interest expense | 20,882 | 18,975 | 16,611 | 13,739 | 12,005 | ||||||||||||||||||
Net interest revenue | 115,634 | 114,879 | 112,110 | 108,476 | 103,285 | 12 | % | ||||||||||||||||
Provision for credit losses | 3,300 | 2,100 | 1,800 | 1,800 | 3,800 | (13 | ) | ||||||||||||||||
Noninterest income | 20,968 | 23,045 | 24,180 | 23,340 | 22,396 | (6 | ) | ||||||||||||||||
Total revenue | 133,302 | 135,824 | 134,490 | 130,016 | 121,881 | 9 | |||||||||||||||||
Expenses | 76,084 | 78,242 | 77,718 | 76,850 | 73,475 | 4 | |||||||||||||||||
Income before income tax expense | 57,218 | 57,582 | 56,772 | 53,166 | 48,406 | 18 | |||||||||||||||||
Income tax expense | 12,956 | 12,445 | 13,090 | 13,532 | 10,748 | 21 | |||||||||||||||||
Net income | 44,262 | 45,137 | 43,682 | 39,634 | 37,658 | 18 | |||||||||||||||||
Merger-related and other charges | 739 | 1,234 | 592 | 2,873 | 2,646 | ||||||||||||||||||
Income tax benefit of merger-related and other charges | (172 | ) | (604 | ) | (141 | ) | (121 | ) | (628 | ) | |||||||||||||
Net income - operating (1) | $ | 44,829 | $ | 45,767 | $ | 44,133 | $ | 42,386 | $ | 39,676 | 13 | ||||||||||||
PERFORMANCE MEASURES | |||||||||||||||||||||||
Per common share: | |||||||||||||||||||||||
Diluted net income - GAAP | $ | 0.55 | $ | 0.56 | $ | 0.54 | $ | 0.49 | $ | 0.47 | 17 | ||||||||||||
Diluted net income - operating (1) | 0.56 | 0.57 | 0.55 | 0.53 | 0.50 | 12 | |||||||||||||||||
Cash dividends declared | 0.16 | 0.16 | 0.15 | 0.15 | 0.12 | 33 | |||||||||||||||||
Book value | 18.93 | 18.24 | 17.56 | 17.29 | 17.02 | 11 | |||||||||||||||||
Tangible book value (3) | 14.93 | 14.24 | 13.54 | 13.25 | 12.96 | 15 | |||||||||||||||||
Key performance ratios: | |||||||||||||||||||||||
Return on common equity - GAAP (2)(4) | 11.85 | % | 12.08 | % | 11.96 | % | 11.20 | % | 11.11 | % | |||||||||||||
Return on common equity - operating (1)(2)(4) | 12.00 | 12.25 | 12.09 | 11.97 | 11.71 | ||||||||||||||||||
Return on tangible common equity - operating (1)(2)(3)(4) | 15.46 | 15.88 | 15.81 | 15.79 | 15.26 | ||||||||||||||||||
Return on assets - GAAP (4) | 1.44 | 1.43 | 1.41 | 1.30 | 1.26 | ||||||||||||||||||
Return on assets - operating (1)(4) | 1.45 | 1.45 | 1.42 | 1.39 | 1.33 | ||||||||||||||||||
Dividend payout ratio - GAAP | 29.09 | 28.57 | 27.78 | 30.61 | 25.53 | ||||||||||||||||||
Dividend payout ratio - operating (1) | 28.57 | 28.07 | 27.27 | 28.30 | 24.00 | ||||||||||||||||||
Net interest margin (fully taxable equivalent) (4) | 4.10 | 3.97 | 3.95 | 3.90 | 3.80 | ||||||||||||||||||
Efficiency ratio - GAAP | 55.32 | 56.73 | 56.82 | 57.94 | 57.83 | ||||||||||||||||||
Efficiency ratio - operating (1) | 54.78 | 55.83 | 56.39 | 55.77 | 55.75 | ||||||||||||||||||
Average equity to average assets | 11.82 | 11.35 | 11.33 | 11.21 | 11.03 | ||||||||||||||||||
Average tangible common equity to average assets (3) | 9.53 | 9.04 | 8.97 | 8.83 | 8.82 | ||||||||||||||||||
Tangible common equity to risk-weighted assets (3) | 12.48 | 12.00 | 11.61 | 11.36 | 11.19 | ||||||||||||||||||
ASSET QUALITY | |||||||||||||||||||||||
Nonperforming loans | $ | 23,624 | $ | 23,778 | $ | 22,530 | $ | 21,817 | $ | 26,240 | (10 | ) | |||||||||||
Foreclosed properties | 1,127 | 1,305 | 1,336 | 2,597 | 2,714 | (58 | ) | ||||||||||||||||
Total nonperforming assets ("NPAs") | 24,751 | 25,083 | 23,866 | 24,414 | 28,954 | (15 | ) | ||||||||||||||||
Allowance for loan losses | 61,642 | 61,203 | 60,940 | 61,071 | 61,085 | 1 | |||||||||||||||||
Net charge-offs | 3,130 | 1,787 | 1,466 | 1,359 | 1,501 | 109 | |||||||||||||||||
Allowance for loan losses to loans | 0.73 | % | 0.73 | % | 0.74 | % | 0.74 | % | 0.75 | % | |||||||||||||
Net charge-offs to average loans (4) | 0.15 | 0.09 | 0.07 | 0.07 | 0.08 | ||||||||||||||||||
NPAs to loans and foreclosed properties | 0.29 | 0.30 | 0.29 | 0.30 | 0.35 | ||||||||||||||||||
NPAs to total assets | 0.20 | 0.20 | 0.19 | 0.20 | 0.24 | ||||||||||||||||||
AVERAGE BALANCES ($ in millions) | |||||||||||||||||||||||
Loans | $ | 8,430 | $ | 8,306 | $ | 8,200 | $ | 8,177 | $ | 7,993 | 5 | ||||||||||||
Investment securities | 2,883 | 3,004 | 2,916 | 2,802 | 2,870 | — | |||||||||||||||||
Earning assets | 11,498 | 11,534 | 11,320 | 11,193 | 11,076 | 4 | |||||||||||||||||
Total assets | 12,509 | 12,505 | 12,302 | 12,213 | 12,111 | 3 | |||||||||||||||||
Deposits | 10,361 | 10,306 | 9,950 | 9,978 | 9,759 | 6 | |||||||||||||||||
Shareholders’ equity | 1,478 | 1,420 | 1,394 | 1,370 | 1,336 | 11 | |||||||||||||||||
Common shares - basic (thousands) | 79,807 | 79,884 | 79,806 | 79,753 | 79,205 | 1 | |||||||||||||||||
Common shares - diluted (thousands) | 79,813 | 79,890 | 79,818 | 79,755 | 79,215 | 1 | |||||||||||||||||
AT PERIOD END ($ in millions) | |||||||||||||||||||||||
Loans | $ | 8,493 | $ | 8,383 | $ | 8,226 | $ | 8,220 | $ | 8,184 | 4 | ||||||||||||
Investment securities | 2,720 | 2,903 | 2,873 | 2,834 | 2,731 | — | |||||||||||||||||
Total assets | 12,506 | 12,573 | 12,405 | 12,386 | 12,264 | 2 | |||||||||||||||||
Deposits | 10,534 | 10,535 | 10,229 | 9,966 | 9,993 | 5 | |||||||||||||||||
Shareholders’ equity | 1,508 | 1,458 | 1,402 | 1,379 | 1,357 | 11 | |||||||||||||||||
Common shares outstanding (thousands) | 79,035 | 79,234 | 79,202 | 79,138 | 79,123 | — |
UNITED COMMUNITY BANKS, INC. | |||||||||||||||||||||||
Table 1 - Financial Highlights | |||||||||||||||||||||||
Selected Financial Information | |||||||||||||||||||||||
2020 | 2019 | 1st Quarter 2020 - 2019 Change | |||||||||||||||||||||
(in thousands, except per share data) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||
INCOME SUMMARY | |||||||||||||||||||||||
Interest revenue | $ | 136,547 | $ | 136,419 | $ | 140,615 | $ | 139,156 | $ | 136,516 | |||||||||||||
Interest expense | 17,941 | 19,781 | 21,277 | 21,372 | 20,882 | ||||||||||||||||||
Net interest revenue | 118,606 | 116,638 | 119,338 | 117,784 | 115,634 | 3 | % | ||||||||||||||||
Provision for credit losses | 22,191 | 3,500 | 3,100 | 3,250 | 3,300 | ||||||||||||||||||
Noninterest income | 25,814 | 30,183 | 29,031 | 24,531 | 20,968 | 23 | |||||||||||||||||
Total revenue | 122,229 | 143,321 | 145,269 | 139,065 | 133,302 | (8 | ) | ||||||||||||||||
Expenses | 81,538 | 81,424 | 82,924 | 81,813 | 76,084 | 7 | |||||||||||||||||
Income before income tax expense | 40,691 | 61,897 | 62,345 | 57,252 | 57,218 | (29 | ) | ||||||||||||||||
Income tax expense | 8,807 | 12,885 | 13,983 | 13,167 | 12,956 | (32 | ) | ||||||||||||||||
Net income | 31,884 | 49,012 | 48,362 | 44,085 | 44,262 | (28 | ) | ||||||||||||||||
Merger-related and other charges | 808 | (74 | ) | 2,605 | 4,087 | 739 | |||||||||||||||||
Income tax benefit of merger-related and other charges | (182 | ) | 17 | (600 | ) | (940 | ) | (172 | ) | ||||||||||||||
Net income - operating (1) | $ | 32,510 | $ | 48,955 | $ | 50,367 | $ | 47,232 | $ | 44,829 | (27 | ) | |||||||||||
PERFORMANCE MEASURES | |||||||||||||||||||||||
Per common share: | |||||||||||||||||||||||
Diluted net income - GAAP | $ | 0.40 | $ | 0.61 | $ | 0.60 | $ | 0.55 | $ | 0.55 | (27 | ) | |||||||||||
Diluted net income - operating (1) | 0.41 | 0.61 | 0.63 | 0.59 | 0.56 | (27 | ) | ||||||||||||||||
Cash dividends declared | 0.18 | 0.18 | 0.17 | 0.17 | 0.16 | 13 | |||||||||||||||||
Book value | 20.80 | 20.53 | 20.16 | 19.65 | 18.93 | 10 | |||||||||||||||||
Tangible book value (3) | 16.52 | 16.28 | 15.90 | 15.38 | 14.93 | 11 | |||||||||||||||||
Key performance ratios: | |||||||||||||||||||||||
Return on common equity - GAAP (2)(4) | 7.85 | % | 12.07 | % | 12.16 | % | 11.45 | % | 11.85 | % | |||||||||||||
Return on common equity - operating (1)(2)(4) | 8.01 | 12.06 | 12.67 | 12.27 | 12.00 | ||||||||||||||||||
Return on tangible common equity - operating (1)(2)(3)(4) | 10.57 | 15.49 | 16.38 | 15.88 | 15.46 | ||||||||||||||||||
Return on assets - GAAP (4) | 0.99 | 1.50 | 1.51 | 1.40 | 1.44 | ||||||||||||||||||
Return on assets - operating (1)(4) | 1.01 | 1.50 | 1.58 | 1.50 | 1.45 | ||||||||||||||||||
Dividend payout ratio - GAAP | 45.00 | 29.51 | 28.33 | 30.91 | 29.09 | ||||||||||||||||||
Dividend payout ratio - operating (1) | 43.90 | 29.51 | 26.98 | 28.81 | 28.57 | ||||||||||||||||||
Net interest margin (fully taxable equivalent) (4) | 4.07 | 3.93 | 4.12 | 4.12 | 4.10 | ||||||||||||||||||
Efficiency ratio - GAAP | 56.15 | 54.87 | 55.64 | 57.28 | 55.32 | ||||||||||||||||||
Efficiency ratio - operating (1) | 55.59 | 54.92 | 53.90 | 54.42 | 54.78 | ||||||||||||||||||
Equity to total assets | 12.54 | 12.66 | 12.53 | 12.25 | 12.06 | ||||||||||||||||||
Tangible common equity to tangible assets (3) | 10.22 | 10.32 | 10.16 | 9.86 | 9.76 | ||||||||||||||||||
ASSET QUALITY | |||||||||||||||||||||||
Nonperforming loans | $ | 36,208 | $ | 35,341 | $ | 30,832 | $ | 26,597 | $ | 23,624 | 53 | ||||||||||||
Foreclosed properties | 475 | 476 | 102 | 75 | 1,127 | (58 | ) | ||||||||||||||||
Total nonperforming assets ("NPAs") | 36,683 | 35,817 | 30,934 | 26,672 | 24,751 | 48 | |||||||||||||||||
Allowance for credit losses - loans | 81,905 | 62,089 | 62,514 | 62,204 | 61,642 | 33 | |||||||||||||||||
Net charge-offs | 8,114 | 3,925 | 2,723 | 2,438 | 3,130 | 159 | |||||||||||||||||
Allowance for credit losses to loans | 0.92 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.73 | % | |||||||||||||
Net charge-offs to average loans (4) | 0.37 | 0.18 | 0.12 | 0.11 | 0.15 | ||||||||||||||||||
NPAs to loans and foreclosed properties | 0.41 | 0.41 | 0.35 | 0.30 | 0.29 | ||||||||||||||||||
NPAs to total assets | 0.28 | 0.28 | 0.24 | 0.21 | 0.20 | ||||||||||||||||||
AVERAGE BALANCES ($ in millions) | |||||||||||||||||||||||
Loans | $ | 8,829 | $ | 8,890 | $ | 8,836 | $ | 8,670 | $ | 8,430 | 5 | ||||||||||||
Investment securities | 2,520 | 2,486 | 2,550 | 2,674 | 2,883 | (13 | ) | ||||||||||||||||
Earning assets | 11,798 | 11,832 | 11,568 | 11,534 | 11,498 | 3 | |||||||||||||||||
Total assets | 12,944 | 12,946 | 12,681 | 12,608 | 12,509 | 3 | |||||||||||||||||
Deposits | 10,915 | 10,924 | 10,531 | 10,493 | 10,361 | 5 | |||||||||||||||||
Shareholders’ equity | 1,653 | 1,623 | 1,588 | 1,531 | 1,478 | 12 | |||||||||||||||||
Common shares - basic (thousands) | 79,340 | 79,659 | 79,663 | 79,673 | 79,807 | (1 | ) | ||||||||||||||||
Common shares - diluted (thousands) | 79,446 | 79,669 | 79,667 | 79,678 | 79,813 | — | |||||||||||||||||
AT PERIOD END ($ in millions) | |||||||||||||||||||||||
Loans | $ | 8,935 | $ | 8,813 | $ | 8,903 | $ | 8,838 | $ | 8,493 | 5 | ||||||||||||
Investment securities | 2,540 | 2,559 | 2,515 | 2,620 | 2,720 | (7 | ) | ||||||||||||||||
Total assets | 13,086 | 12,916 | 12,809 | 12,779 | 12,506 | 5 | |||||||||||||||||
Deposits | 11,035 | 10,897 | 10,757 | 10,591 | 10,534 | 5 | |||||||||||||||||
Shareholders’ equity | 1,641 | 1,636 | 1,605 | 1,566 | 1,508 | 9 | |||||||||||||||||
Common shares outstanding (thousands) | 78,284 | 79,014 | 78,974 | 79,075 | 79,035 | (1 | ) |
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||
Table 1 (Continued) - Non-GAAP Performance Measures Reconciliation | ||||||||||||||||||||||
Selected Financial Information | ||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||
First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||
Expense reconciliation | ||||||||||||||||||||||
Expenses (GAAP) | $ | 76,084 | $ | 78,242 | $ | 77,718 | $ | 76,850 | $ | 73,475 | ||||||||||||
Merger-related and other charges | (739 | ) | (1,234 | ) | (592 | ) | (2,873 | ) | (2,646 | ) | ||||||||||||
Expenses - operating | $ | 75,345 | $ | 77,008 | $ | 77,126 | $ | 73,977 | $ | 70,829 | ||||||||||||
Net income reconciliation | ||||||||||||||||||||||
Net income (GAAP) | $ | 44,262 | $ | 45,137 | $ | 43,682 | $ | 39,634 | $ | 37,658 | ||||||||||||
Merger-related and other charges | 739 | 1,234 | 592 | 2,873 | 2,646 | |||||||||||||||||
Income tax benefit of merger-related and other charges | (172 | ) | (604 | ) | (141 | ) | (121 | ) | (628 | ) | ||||||||||||
Net income - operating | $ | 44,829 | $ | 45,767 | $ | 44,133 | $ | 42,386 | $ | 39,676 | ||||||||||||
Diluted income per common share reconciliation | ||||||||||||||||||||||
Diluted income per common share (GAAP) | $ | 0.55 | $ | 0.56 | $ | 0.54 | $ | 0.49 | $ | 0.47 | ||||||||||||
Merger-related and other charges | 0.01 | 0.01 | 0.01 | 0.04 | 0.03 | |||||||||||||||||
Diluted income per common share - operating | $ | 0.56 | $ | 0.57 | $ | 0.55 | $ | 0.53 | $ | 0.50 | ||||||||||||
Book value per common share reconciliation | ||||||||||||||||||||||
Book value per common share (GAAP) | $ | 18.93 | $ | 18.24 | $ | 17.56 | $ | 17.29 | $ | 17.02 | ||||||||||||
Effect of goodwill and other intangibles | (4.00 | ) | (4.00 | ) | (4.02 | ) | (4.04 | ) | (4.06 | ) | ||||||||||||
Tangible book value per common share | $ | 14.93 | $ | 14.24 | $ | 13.54 | $ | 13.25 | $ | 12.96 | ||||||||||||
Return on tangible common equity reconciliation | ||||||||||||||||||||||
Return on common equity (GAAP) | 11.85 | % | 12.08 | % | 11.96 | % | 11.20 | % | 11.11 | % | ||||||||||||
Merger-related and other charges | 0.15 | 0.17 | 0.13 | 0.77 | 0.60 | |||||||||||||||||
Return on common equity - operating | 12.00 | 12.25 | 12.09 | 11.97 | 11.71 | |||||||||||||||||
Effect of goodwill and other intangibles | 3.46 | 3.63 | 3.72 | 3.82 | 3.55 | |||||||||||||||||
Return on tangible common equity - operating | 15.46 | % | 15.88 | % | 15.81 | % | 15.79 | % | 15.26 | % | ||||||||||||
Return on assets reconciliation | ||||||||||||||||||||||
Return on assets (GAAP) | 1.44 | % | 1.43 | % | 1.41 | % | 1.30 | % | 1.26 | % | ||||||||||||
Merger-related and other charges | 0.01 | 0.02 | 0.01 | 0.09 | 0.07 | |||||||||||||||||
Return on assets - operating | 1.45 | % | 1.45 | % | 1.42 | % | 1.39 | % | 1.33 | % | ||||||||||||
Dividend payout ratio reconciliation | ||||||||||||||||||||||
Dividend payout ratio (GAAP) | 29.09 | % | 28.57 | % | 27.78 | % | 30.61 | % | 25.53 | % | ||||||||||||
Merger-related and other charges | (0.52 | ) | (0.50 | ) | (0.51 | ) | (2.31 | ) | (1.53 | ) | ||||||||||||
Dividend payout ratio - operating | 28.57 | % | 28.07 | % | 27.27 | % | 28.30 | % | 24.00 | % | ||||||||||||
Efficiency ratio reconciliation | ||||||||||||||||||||||
Efficiency ratio (GAAP) | 55.32 | % | 56.73 | % | 56.82 | % | 57.94 | % | 57.83 | % | ||||||||||||
Merger-related and other charges | (0.54 | ) | (0.90 | ) | (0.43 | ) | (2.17 | ) | (2.08 | ) | ||||||||||||
Efficiency ratio - operating | 54.78 | % | 55.83 | % | 56.39 | % | 55.77 | % | 55.75 | % | ||||||||||||
Average equity to assets reconciliation | ||||||||||||||||||||||
Equity to average assets (GAAP) | 11.82 | % | 11.35 | % | 11.33 | % | 11.21 | % | 11.03 | % | ||||||||||||
Effect of goodwill and other intangibles | (2.29 | ) | (2.31 | ) | (2.36 | ) | (2.38 | ) | (2.21 | ) | ||||||||||||
Average tangible common equity to average assets | 9.53 | % | 9.04 | % | 8.97 | % | 8.83 | % | 8.82 | % | ||||||||||||
Tangible common equity to risk-weighted assets reconciliation | ||||||||||||||||||||||
Tier 1 capital ratio (Regulatory) | 12.69 | % | 12.42 | % | 12.25 | % | 11.94 | % | 11.61 | % | ||||||||||||
Effect of other comprehensive income | (0.17 | ) | (0.44 | ) | (0.68 | ) | (0.57 | ) | (0.50 | ) | ||||||||||||
Effect of deferred tax limitation | 0.22 | 0.28 | 0.30 | 0.33 | 0.42 | |||||||||||||||||
Effect of trust preferred | (0.26 | ) | (0.26 | ) | (0.26 | ) | (0.34 | ) | (0.34 | ) | ||||||||||||
Tangible common equity to risk-weighted assets | 12.48 | % | 12.00 | % | 11.61 | % | 11.36 | % | 11.19 | % |
UNITED COMMUNITY BANKS, INC. | ||||||||||||||||||||||
Table 1 (Continued) - Non-GAAP Performance Measures Reconciliation | ||||||||||||||||||||||
Selected Financial Information | ||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||
First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||
Expense reconciliation | ||||||||||||||||||||||
Expenses (GAAP) | $ | 81,538 | $ | 81,424 | $ | 82,924 | $ | 81,813 | $ | 76,084 | ||||||||||||
Merger-related and other charges | (808 | ) | 74 | (2,605 | ) | (4,087 | ) | (739 | ) | |||||||||||||
Expenses - operating | $ | 80,730 | $ | 81,498 | $ | 80,319 | $ | 77,726 | $ | 75,345 | ||||||||||||
Net income reconciliation | ||||||||||||||||||||||
Net income (GAAP) | $ | 31,884 | $ | 49,012 | $ | 48,362 | $ | 44,085 | $ | 44,262 | ||||||||||||
Merger-related and other charges | 808 | (74 | ) | 2,605 | 4,087 | 739 | ||||||||||||||||
Income tax benefit of merger-related and other charges | (182 | ) | 17 | (600 | ) | (940 | ) | (172 | ) | |||||||||||||
Net income - operating | $ | 32,510 | $ | 48,955 | $ | 50,367 | $ | 47,232 | $ | 44,829 | ||||||||||||
Diluted income per common share reconciliation | ||||||||||||||||||||||
Diluted income per common share (GAAP) | $ | 0.40 | $ | 0.61 | $ | 0.60 | $ | 0.55 | $ | 0.55 | ||||||||||||
Merger-related and other charges, net of tax | 0.01 | — | 0.03 | 0.04 | 0.01 | |||||||||||||||||
Diluted income per common share - operating | $ | 0.41 | $ | 0.61 | $ | 0.63 | $ | 0.59 | $ | 0.56 | ||||||||||||
Book value per common share reconciliation | ||||||||||||||||||||||
Book value per common share (GAAP) | $ | 20.80 | $ | 20.53 | $ | 20.16 | $ | 19.65 | $ | 18.93 | ||||||||||||
Effect of goodwill and other intangibles | (4.28 | ) | (4.25 | ) | (4.26 | ) | (4.27 | ) | (4.00 | ) | ||||||||||||
Tangible book value per common share | $ | 16.52 | $ | 16.28 | $ | 15.90 | $ | 15.38 | $ | 14.93 | ||||||||||||
Return on tangible common equity reconciliation | ||||||||||||||||||||||
Return on common equity (GAAP) | 7.85 | % | 12.07 | % | 12.16 | % | 11.45 | % | 11.85 | % | ||||||||||||
Merger-related and other charges, net of tax | 0.16 | (0.01 | ) | 0.51 | 0.82 | 0.15 | ||||||||||||||||
Return on common equity - operating | 8.01 | 12.06 | 12.67 | 12.27 | 12.00 | |||||||||||||||||
Effect of goodwill and other intangibles | 2.56 | 3.43 | 3.71 | 3.61 | 3.46 | |||||||||||||||||
Return on tangible common equity - operating | 10.57 | % | 15.49 | % | 16.38 | % | 15.88 | % | 15.46 | % | ||||||||||||
Return on assets reconciliation | ||||||||||||||||||||||
Return on assets (GAAP) | 0.99 | % | 1.50 | % | 1.51 | % | 1.40 | % | 1.44 | % | ||||||||||||
Merger-related and other charges, net of tax | 0.02 | — | 0.07 | 0.10 | 0.01 | |||||||||||||||||
Return on assets - operating | 1.01 | % | 1.50 | % | 1.58 | % | 1.50 | % | 1.45 | % | ||||||||||||
Dividend payout ratio reconciliation | ||||||||||||||||||||||
Dividend payout ratio (GAAP) | 45.00 | % | 29.51 | % | 28.33 | % | 30.91 | % | 29.09 | % | ||||||||||||
Merger-related and other charges, net of tax | (1.10 | ) | — | (1.35 | ) | (2.10 | ) | (0.52 | ) | |||||||||||||
Dividend payout ratio - operating | 43.90 | % | 29.51 | % | 26.98 | % | 28.81 | % | 28.57 | % | ||||||||||||
Efficiency ratio reconciliation | ||||||||||||||||||||||
Efficiency ratio (GAAP) | 56.15 | % | 54.87 | % | 55.64 | % | 57.28 | % | 55.32 | % | ||||||||||||
Merger-related and other charges | (0.56 | ) | 0.05 | (1.74 | ) | (2.86 | ) | (0.54 | ) | |||||||||||||
Efficiency ratio - operating | 55.59 | % | 54.92 | % | 53.90 | % | 54.42 | % | 54.78 | % | ||||||||||||
Tangible common equity to tangible assets reconciliation | ||||||||||||||||||||||
Equity to total assets (GAAP) | 12.54 | % | 12.66 | % | 12.53 | % | 12.25 | % | 12.06 | % | ||||||||||||
Effect of goodwill and other intangibles | (2.32 | ) | (2.34 | ) | (2.37 | ) | (2.39 | ) | (2.30 | ) | ||||||||||||
Tangible common equity to tangible assets | 10.22 | % | 10.32 | % | 10.16 | % | 9.86 | % | 9.76 | % |
Table 2 - Average Consolidated Balance Sheets and Net Interest Analysis |
For the Three Months Ended March 31, |
2019 | 2018 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, fully taxable equivalent (FTE)) | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||
Loans, net of unearned income (FTE) (1)(2) | $ | 8,429,976 | $ | 115,347 | 5.55 | % | $ | 7,993,339 | $ | 96,389 | 4.89 | % | $ | 8,828,880 | $ | 117,796 | 5.37 | % | $ | 8,429,976 | $ | 115,347 | 5.55 | % | ||||||||||||||||||||
Taxable securities (3) | 2,712,995 | 19,649 | 2.90 | 2,722,977 | 17,323 | 2.54 | 2,357,635 | 15,871 | 2.69 | 2,712,995 | 19,649 | 2.90 | ||||||||||||||||||||||||||||||||
Tax-exempt securities (FTE) (1)(3) | 169,702 | 1,570 | 3.70 | 146,531 | 1,309 | 3.57 | 162,253 | 2,045 | 5.04 | 169,702 | 1,570 | 3.70 | ||||||||||||||||||||||||||||||||
Federal funds sold and other interest-earning assets | 185,623 | 618 | 1.33 | 213,055 | 698 | 1.31 | 448,775 | 1,632 | 1.46 | 185,623 | 618 | 1.33 | ||||||||||||||||||||||||||||||||
Total interest-earning assets (FTE) | 11,498,296 | 137,184 | 4.83 | 11,075,902 | 115,719 | 4.23 | 11,797,543 | 137,344 | 4.68 | 11,498,296 | 137,184 | 4.83 | ||||||||||||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (61,784 | ) | (59,144 | ) | ||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (69,777 | ) | (61,784 | ) | ||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 123,801 | 160,486 | 128,254 | 123,801 | ||||||||||||||||||||||||||||||||||||||||
Premises and equipment | 216,611 | 216,723 | 219,243 | 216,611 | ||||||||||||||||||||||||||||||||||||||||
Other assets (3) | 731,628 | 717,385 | 868,452 | 731,628 | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 12,508,552 | $ | 12,111,352 | $ | 12,943,715 | $ | 12,508,552 | ||||||||||||||||||||||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||
NOW and interest-bearing demand | $ | 2,208,816 | 3,536 | 0.65 | $ | 2,083,703 | 1,113 | 0.22 | $ | 2,412,733 | 2,978 | 0.50 | $ | 2,286,619 | 3,609 | 0.64 | ||||||||||||||||||||||||||||
Money market | 2,175,855 | 4,205 | 0.78 | 2,230,620 | 2,175 | 0.40 | 2,340,723 | 4,531 | 0.78 | 2,098,052 | 4,132 | 0.80 | ||||||||||||||||||||||||||||||||
Savings | 672,197 | 32 | 0.02 | 655,746 | 49 | 0.03 | 712,110 | 35 | 0.02 | 672,197 | 32 | 0.02 | ||||||||||||||||||||||||||||||||
Time | 1,627,584 | 5,336 | 1.33 | 1,535,216 | 2,241 | 0.59 | 1,841,552 | 7,250 | 1.58 | 1,627,584 | 5,336 | 1.33 | ||||||||||||||||||||||||||||||||
Brokered time deposits | 482,048 | 2,848 | 2.40 | 158,358 | 715 | 1.83 | 80,821 | 281 | 1.40 | 482,048 | 2,848 | 2.40 | ||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 7,166,500 | 15,957 | 0.90 | 6,663,643 | 6,293 | 0.38 | 7,387,939 | 15,075 | 0.82 | 7,166,500 | 15,957 | 0.90 | ||||||||||||||||||||||||||||||||
Federal funds purchased and other borrowings | 21,549 | 161 | 3.03 | 78,732 | 300 | 1.55 | 396 | 1 | 1.02 | 21,549 | 161 | 3.03 | ||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | 223,945 | 1,422 | 2.58 | 511,727 | 2,124 | 1.68 | 165 | 1 | 2.44 | 223,945 | 1,422 | 2.58 | ||||||||||||||||||||||||||||||||
Long-term debt | 261,971 | 3,342 | 5.17 | 274,480 | 3,288 | 4.86 | 212,762 | 2,864 | 5.41 | 261,971 | 3,342 | 5.17 | ||||||||||||||||||||||||||||||||
Total borrowed funds | 507,465 | 4,925 | 3.94 | 864,939 | 5,712 | 2.68 | 213,323 | 2,866 | 5.40 | 507,465 | 4,925 | 3.94 | ||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 7,673,965 | 20,882 | 1.10 | 7,528,582 | 12,005 | 0.65 | 7,601,262 | 17,941 | 0.95 | 7,673,965 | 20,882 | 1.10 | ||||||||||||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 3,194,401 | 3,095,405 | 3,527,385 | 3,194,401 | ||||||||||||||||||||||||||||||||||||||||
Other liabilities | 162,213 | 150,955 | 162,187 | 162,213 | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | 11,030,579 | 10,774,942 | 11,290,834 | 11,030,579 | ||||||||||||||||||||||||||||||||||||||||
Shareholders' equity | 1,477,973 | 1,336,410 | 1,652,881 | 1,477,973 | ||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 12,508,552 | $ | 12,111,352 | $ | 12,943,715 | $ | 12,508,552 | ||||||||||||||||||||||||||||||||||||
Net interest revenue (FTE) | $ | 116,302 | $ | 103,714 | $ | 119,403 | $ | 116,302 | ||||||||||||||||||||||||||||||||||||
Net interest-rate spread (FTE) | 3.73 | % | 3.58 | % | 3.73 | % | 3.73 | % | ||||||||||||||||||||||||||||||||||||
Net interest margin (FTE) (4) | 4.10 | % | 3.80 | % | 4.07 | % | 4.10 | % |
(1) | Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 26% |
(2) | Included in the average balance of loans outstanding are loans |
(3) | Securities |
(4) | Net interest margin is taxable equivalent net interest revenue divided by average interest-earning assets. |
(5) | Reflects reclassification of certain sweep deposits from money market to NOW and interest bearing demand during the third quarter of 2019. |
Table 3 - Change in Interest Revenue and Expense on a Taxable Equivalent Basis |
(in thousands) |
Three Months Ended March 31, 2019 | ||||||||||||||
Compared to 2018 Increase (Decrease) Due to Changes in | ||||||||||||||
Volume | Rate | Total | ||||||||||||
Interest-earning assets: | ||||||||||||||
Loans (FTE) | $ | 5,470 | $ | 13,488 | $ | 18,958 | ||||||||
Taxable securities | (64 | ) | 2,390 | 2,326 | ||||||||||
Tax-exempt securities (FTE) | 213 | 48 | 261 | |||||||||||
Federal funds sold and other interest-earning assets | (91 | ) | 11 | (80 | ) | |||||||||
Total interest-earning assets (FTE) | 5,528 | 15,937 | 21,465 | |||||||||||
Interest-bearing liabilities: | ||||||||||||||
NOW and interest-bearing demand accounts | 71 | 2,352 | 2,423 | |||||||||||
Money market accounts | (55 | ) | 2,085 | 2,030 | ||||||||||
Savings deposits | 1 | (18 | ) | (17 | ) | |||||||||
Time deposits | 143 | 2,952 | 3,095 | |||||||||||
Brokered deposits | 1,853 | 280 | 2,133 | |||||||||||
Total interest-bearing deposits | 2,013 | 7,651 | 9,664 | |||||||||||
Federal funds purchased & other borrowings | (308 | ) | 169 | (139 | ) | |||||||||
Federal Home Loan Bank advances | (1,520 | ) | 818 | (702 | ) | |||||||||
Long-term debt | (154 | ) | 208 | 54 | ||||||||||
Total borrowed funds | (1,982 | ) | 1,195 | (787 | ) | |||||||||
Total interest-bearing liabilities | 31 | 8,846 | 8,877 | |||||||||||
Increase in net interest revenue (FTE) | $ | 5,497 | $ | 7,091 | $ | 12,588 |
Three Months Ended March 31, 2020 | ||||||||||||||
Compared to 2019 Increase (Decrease) Due to Changes in | ||||||||||||||
Volume | Rate | Total | ||||||||||||
Interest-earning assets: | ||||||||||||||
Loans (FTE) | $ | 5,369 | $ | (2,920 | ) | $ | 2,449 | |||||||
Taxable securities | (2,456 | ) | (1,322 | ) | (3,778 | ) | ||||||||
Tax-exempt securities (FTE) | (72 | ) | 547 | 475 | ||||||||||
Federal funds sold and other interest-earning assets | 948 | 66 | 1,014 | |||||||||||
Total interest-earning assets (FTE) | 3,789 | (3,629 | ) | 160 | ||||||||||
Interest-bearing liabilities: | ||||||||||||||
NOW and interest-bearing demand accounts (1) | 190 | (821 | ) | (631 | ) | |||||||||
Money market accounts (1) | 471 | (72 | ) | 399 | ||||||||||
Savings deposits | 2 | 1 | 3 | |||||||||||
Time deposits | 757 | 1,157 | 1,914 | |||||||||||
Brokered deposits | (1,718 | ) | (849 | ) | (2,567 | ) | ||||||||
Total interest-bearing deposits | (298 | ) | (584 | ) | (882 | ) | ||||||||
Federal funds purchased & other borrowings | (96 | ) | (64 | ) | (160 | ) | ||||||||
Federal Home Loan Bank advances | (1,359 | ) | (62 | ) | (1,421 | ) | ||||||||
Long-term debt | (655 | ) | 177 | (478 | ) | |||||||||
Total borrowed funds | (2,110 | ) | 51 | (2,059 | ) | |||||||||
Total interest-bearing liabilities | (2,408 | ) | (533 | ) | (2,941 | ) | ||||||||
Increase in net interest revenue (FTE) | $ | 6,197 | $ | (3,096 | ) | $ | 3,101 |
Table 4 - Noninterest Income |
(in thousands) |
Three Months Ended March 31, | Change | |||||||||||||||
2019 | 2018 | Amount | Percent | |||||||||||||
Overdraft fees | $ | 3,455 | $ | 3,652 | $ | (197 | ) | (5 | )% | |||||||
ATM and debit card fees | 2,878 | 3,271 | (393 | ) | (12 | ) | ||||||||||
Other service charges and fees | 2,120 | 2,002 | 118 | 6 | ||||||||||||
Service charges and fees | 8,453 | 8,925 | (472 | ) | (5 | ) | ||||||||||
Mortgage loan and related fees | 3,748 | 5,359 | (1,611 | ) | (30 | ) | ||||||||||
Brokerage fees | 1,337 | 872 | 465 | 53 | ||||||||||||
Gains on sales of SBA/USDA loans | 1,303 | 1,778 | (475 | ) | (27 | ) | ||||||||||
Customer derivatives | 505 | 772 | (267 | ) | (35 | ) | ||||||||||
Securities losses, net | (267 | ) | (940 | ) | 673 | |||||||||||
Other | 5,889 | 5,630 | 259 | 5 | ||||||||||||
Total noninterest income | $ | 20,968 | $ | 22,396 | $ | (1,428 | ) | (6 | ) |
Three Months Ended March 31, | Change | |||||||||||||||
2020 | 2019 | Amount | Percent | |||||||||||||
Service charges and fees: | ||||||||||||||||
Overdraft fees | $ | 3,519 | $ | 3,455 | $ | 64 | 2 | % | ||||||||
ATM and debit card fees | 3,069 | 2,878 | 191 | 7 | ||||||||||||
Other service charges and fees | 2,050 | 2,120 | (70 | ) | (3 | ) | ||||||||||
Total service charges and fees | 8,638 | 8,453 | 185 | 2 | ||||||||||||
Mortgage loan gains and related fees | 8,310 | 3,748 | 4,562 | 122 | ||||||||||||
Brokerage fees | 1,640 | 1,337 | 303 | 23 | ||||||||||||
Gains on sales of other loans | 1,674 | 1,303 | 371 | 28 | ||||||||||||
Securities gains (losses), net | — | (267 | ) | 267 | ||||||||||||
Other noninterest income: | ||||||||||||||||
Bank owned life insurance | 845 | 873 | (28 | ) | (3 | ) | ||||||||||
Customer derivatives | 1,407 | 505 | 902 | 179 | ||||||||||||
Other | 3,300 | 5,016 | (1,716 | ) | (34 | ) | ||||||||||
Total other noninterest income | 5,552 | 6,394 | (842 | ) | (13 | ) | ||||||||||
Total noninterest income | $ | 25,814 | $ | 20,968 | $ | 4,846 | 23 |
Table 5 - Noninterest Expenses |
(in thousands) |
Three Months Ended March 31, | Change | |||||||||||||||
2019 | 2018 | Amount | Percent | |||||||||||||
Salaries and employee benefits | $ | 47,503 | $ | 42,875 | $ | 4,628 | 11 | % | ||||||||
Communications and equipment | 5,788 | 4,632 | 1,156 | 25 | ||||||||||||
Occupancy | 5,584 | 5,613 | (29 | ) | (1 | ) | ||||||||||
Advertising and public relations | 1,286 | 1,515 | (229 | ) | (15 | ) | ||||||||||
Postage, printing and supplies | 1,586 | 1,637 | (51 | ) | (3 | ) | ||||||||||
Professional fees | 3,161 | 4,044 | (883 | ) | (22 | ) | ||||||||||
FDIC assessments and other regulatory charges | 1,710 | 2,476 | (766 | ) | (31 | ) | ||||||||||
Amortization of core deposit intangibles | 1,100 | 1,306 | (206 | ) | (16 | ) | ||||||||||
Other | 7,627 | 6,731 | 896 | 13 | ||||||||||||
Total excluding merger-related and other charges | 75,345 | 70,829 | 4,516 | 6 | ||||||||||||
Merger-related and other charges | 546 | 2,054 | (1,508 | ) | ||||||||||||
Amortization of noncompete agreements | 193 | 592 | (399 | ) | ||||||||||||
Total noninterest expenses | $ | 76,084 | $ | 73,475 | $ | 2,609 | 4 |
Three Months Ended March 31, | Change | |||||||||||||||
2020 | 2019 | Amount | Percent | |||||||||||||
Salaries and employee benefits | $ | 51,358 | $ | 47,503 | $ | 3,855 | 8 | % | ||||||||
Communications and equipment | 5,946 | 5,788 | 158 | 3 | ||||||||||||
Occupancy | 5,714 | 5,584 | 130 | 2 | ||||||||||||
Advertising and public relations | 1,274 | 1,286 | (12 | ) | (1 | ) | ||||||||||
Postage, printing and supplies | 1,670 | 1,586 | 84 | 5 | ||||||||||||
Professional fees | 4,097 | 3,161 | 936 | 30 | ||||||||||||
Lending and loan servicing expense | 2,293 | 2,334 | (41 | ) | (2 | ) | ||||||||||
Outside services - electronic banking | 1,832 | 1,609 | 223 | 14 | ||||||||||||
FDIC assessments and other regulatory charges | 1,484 | 1,710 | (226 | ) | (13 | ) | ||||||||||
Amortization of core deposit intangibles | 1,040 | 1,100 | (60 | ) | (5 | ) | ||||||||||
Other | 4,022 | 3,684 | 338 | 9 | ||||||||||||
Total excluding merger-related and other charges | 80,730 | 75,345 | 5,385 | 7 | ||||||||||||
Merger-related and other charges | 808 | 546 | 262 | |||||||||||||
Amortization of noncompete agreements | — | 193 | (193 | ) | ||||||||||||
Total noninterest expenses | $ | 81,538 | $ | 76,084 | $ | 5,454 | 7 |
Table 6 - Loans Outstanding |
(in thousands) |
March 31, 2019 | December 31, 2018 | ||||||||
By Loan Type | |||||||||
Owner occupied commercial real estate | $ | 1,620,068 | $ | 1,647,904 | |||||
Income producing commercial real estate | 1,867,425 | 1,812,420 | |||||||
Commercial & industrial | 1,283,865 | 1,278,347 | |||||||
Commercial construction | 865,666 | 796,158 | |||||||
Equipment financing | 605,984 | 564,614 | |||||||
Total commercial | 6,243,008 | 6,099,443 | |||||||
Residential mortgage | 1,063,840 | 1,049,232 | |||||||
Home equity lines of credit | 683,771 | 694,010 | |||||||
Residential construction | 200,708 | 211,011 | |||||||
Consumer direct | 121,174 | 122,013 | |||||||
Indirect auto | 180,753 | 207,692 | |||||||
Total loans | $ | 8,493,254 | $ | 8,383,401 | |||||
As a percentage of total loans: | |||||||||
Owner occupied commercial real estate | 19 | % | 20 | % | |||||
Income producing commercial real estate | 22 | 22 | |||||||
Commercial & industrial | 15 | 15 | |||||||
Commercial construction | 11 | 9 | |||||||
Equipment financing | 7 | 7 | |||||||
Total commercial | 74 | 73 | |||||||
Residential mortgage | 13 | 13 | |||||||
Home equity lines of credit | 8 | 8 | |||||||
Residential construction | 2 | 3 | |||||||
Consumer direct | 1 | 1 | |||||||
Indirect auto | 2 | 2 | |||||||
Total | 100 | % | 100 | % | |||||
By Geographic Location | |||||||||
North Georgia | $ | 970,072 | $ | 980,968 | |||||
Atlanta MSA | 1,523,406 | 1,506,990 | |||||||
North Carolina | 1,074,024 | 1,071,790 | |||||||
Coastal Georgia | 603,385 | 587,988 | |||||||
Gainesville MSA | 242,984 | 246,715 | |||||||
East Tennessee | 458,349 | 477,403 | |||||||
South Carolina | 1,674,012 | 1,645,567 | |||||||
Commercial Banking Solutions | 1,766,269 | 1,658,288 | |||||||
Indirect auto | 180,753 | 207,692 | |||||||
Total loans | $ | 8,493,254 | $ | 8,383,401 |
March 31, 2020 | December 31, 2019 | ||||||||
By Loan Type | |||||||||
Owner occupied commercial real estate | $ | 1,702,984 | $ | 1,720,227 | |||||
Income producing commercial real estate | 2,064,502 | 2,007,950 | |||||||
Commercial & industrial | 1,310,112 | 1,220,657 | |||||||
Commercial construction | 959,318 | 976,215 | |||||||
Equipment financing | 760,952 | 744,544 | |||||||
Total commercial | 6,797,868 | 6,669,593 | |||||||
Residential mortgage | 1,127,988 | 1,117,616 | |||||||
Home equity lines of credit | 668,382 | 660,675 | |||||||
Residential construction | 215,996 | 236,437 | |||||||
Consumer | 125,190 | 128,232 | |||||||
Total loans | $ | 8,935,424 | $ | 8,812,553 | |||||
As a percentage of total loans: | |||||||||
Owner occupied commercial real estate | 19 | % | 20 | % | |||||
Income producing commercial real estate | 23 | 23 | |||||||
Commercial & industrial | 15 | 14 | |||||||
Commercial construction | 11 | 11 | |||||||
Equipment financing | 8 | 8 | |||||||
Total commercial | 76 | 76 | |||||||
Residential mortgage | 13 | 13 | |||||||
Home equity lines of credit | 8 | 7 | |||||||
Residential construction | 2 | 3 | |||||||
Consumer | 1 | 1 | |||||||
Total | 100 | % | 100 | % |
March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | |||||||||||||||
By Category | |||||||||||||||||||
Owner occupied commercial real estate | $ | 32,433 | $ | 32,909 | $ | 38,601 | $ | 42,169 | $ | 42,096 | |||||||||
Income producing commercial real estate | 19,277 | 18,048 | 24,170 | 26,120 | 24,984 | ||||||||||||||
Commercial & industrial | 21,125 | 20,980 | 21,509 | 17,820 | 11,003 | ||||||||||||||
Commercial construction | 8,019 | 9,549 | 8,012 | 10,102 | 8,422 | ||||||||||||||
Equipment financing | 115 | 217 | 274 | 820 | 414 | ||||||||||||||
Total commercial | 80,969 | 81,703 | 92,566 | 97,031 | 86,919 | ||||||||||||||
Residential mortgage | 5,600 | 5,623 | 13,582 | 14,970 | 14,824 | ||||||||||||||
Home equity | 1,610 | 1,665 | 4,818 | 5,117 | 5,491 | ||||||||||||||
Residential construction | 249 | 293 | 1,397 | 1,567 | 1,506 | ||||||||||||||
Consumer direct | 222 | 165 | 416 | 498 | 1,142 | ||||||||||||||
Indirect auto | 1,555 | 1,334 | 1,704 | 1,291 | 1,498 | ||||||||||||||
Total | $ | 90,205 | $ | 90,783 | $ | 114,483 | $ | 120,474 | $ | 111,380 | |||||||||
By Market | |||||||||||||||||||
North Georgia | $ | 17,066 | $ | 16,477 | $ | 23,540 | $ | 25,417 | $ | 26,243 | |||||||||
Atlanta MSA | 10,334 | 10,863 | 13,410 | 13,640 | 12,145 | ||||||||||||||
North Carolina | 10,019 | 11,556 | 18,315 | 24,886 | 27,186 | ||||||||||||||
Coastal Georgia | 2,790 | 2,730 | 3,214 | 3,550 | 3,075 | ||||||||||||||
Gainesville MSA | 508 | 519 | 950 | 966 | 662 | ||||||||||||||
East Tennessee | 9,396 | 8,543 | 11,783 | 12,737 | 12,402 | ||||||||||||||
South Carolina | 28,481 | 26,277 | 28,533 | 22,841 | 26,800 | ||||||||||||||
Commercial Banking Solutions | 10,056 | 12,484 | 13,034 | 15,146 | 1,369 | ||||||||||||||
Indirect auto | 1,555 | 1,334 | 1,704 | 1,291 | 1,498 | ||||||||||||||
Total loans | $ | 90,205 | $ | 90,783 | $ | 114,483 | $ | 120,474 | $ | 111,380 |
Three Months Ended March 31, | |||||||||
2019 | 2018 | ||||||||
Allowance for loan and lease losses at beginning of period | $ | 61,203 | $ | 58,914 | |||||
Charge-offs: | |||||||||
Owner occupied commercial real estate | 5 | 60 | |||||||
Income producing commercial real estate | 197 | 657 | |||||||
Commercial & industrial | 1,519 | 384 | |||||||
Commercial construction | 69 | 363 | |||||||
Equipment financing | 1,424 | 139 | |||||||
Residential mortgage | 61 | 70 | |||||||
Home equity lines of credit | 337 | 124 | |||||||
Residential construction | 4 | — | |||||||
Consumer direct | 547 | 651 | |||||||
Indirect auto | 197 | 436 | |||||||
Total loans charged-off | 4,360 | 2,884 | |||||||
Recoveries: | |||||||||
Owner occupied commercial real estate | 69 | 103 | |||||||
Income producing commercial real estate | 20 | 235 | |||||||
Commercial & industrial | 163 | 389 | |||||||
Commercial construction | 394 | 97 | |||||||
Equipment financing | 143 | 97 | |||||||
Residential mortgage | 48 | 123 | |||||||
Home equity lines of credit | 122 | 35 | |||||||
Residential construction | 26 | 64 | |||||||
Consumer direct | 207 | 160 | |||||||
Indirect auto | 38 | 80 | |||||||
Total recoveries | 1,230 | 1,383 | |||||||
Net charge-offs | 3,130 | 1,501 | |||||||
Provision for loan and lease losses | 3,569 | 3,672 | |||||||
Allowance for loan and lease losses at end of period | 61,642 | 61,085 | |||||||
Allowance for unfunded commitments at beginning of period | 3,410 | 2,312 | |||||||
Provision for losses on unfunded commitments | (269 | ) | 128 | ||||||
Allowance for unfunded commitments at end of period | 3,141 | 2,440 | |||||||
Allowance for credit losses | $ | 64,783 | $ | 63,525 | |||||
Total loans and leases: | |||||||||
At period-end | $ | 8,493,254 | $ | 8,184,249 | |||||
Average | 8,429,976 | 7,993,339 | |||||||
Allowance for loan and lease losses as a percentage of period-end loans and leases | 0.73 | % | 0.75 | % | |||||
As a percentage of average loans (annualized): | |||||||||
Net charge-offs | 0.15 | 0.08 | |||||||
Provision for loan and lease losses | 0.17 | 0.19 |
Table |
(in thousands) |
March 31, 2019 | December 31, 2018 | ||||||
Nonaccrual loans | $ | 23,624 | $ | 23,778 | |||
Foreclosed properties/other real estate owned ("OREO") | 1,127 | 1,305 | |||||
Total nonperforming assets | $ | 24,751 | $ | 25,083 | |||
Nonaccrual loans as a percentage of total loans and leases | 0.28 | % | 0.28 | % | |||
Nonperforming assets as a percentage of total loans and OREO | 0.29 | 0.30 | |||||
Nonperforming assets as a percentage of total assets | 0.20 | 0.20 |
Three Months Ended March 31, | |||||||||
2020 | 2019 | ||||||||
ACL - loans, beginning of period | $ | 62,089 | $ | 61,203 | |||||
Adoption of CECL | 6,880 | — | |||||||
ACL - loans, adjusted beginning balance | 68,969 | 61,203 | |||||||
Charge-offs: | |||||||||
Owner occupied commercial real estate | 6 | 5 | |||||||
Income producing commercial real estate | 411 | 197 | |||||||
Commercial & industrial | 7,561 | 1,519 | |||||||
Commercial construction | — | 69 | |||||||
Equipment financing | 1,863 | 1,424 | |||||||
Residential mortgage | 284 | 61 | |||||||
Home equity lines of credit | 20 | 337 | |||||||
Residential construction | 22 | 4 | |||||||
Consumer direct | 638 | 547 | |||||||
Indirect auto | — | 197 | |||||||
Total loans charged-off | 10,805 | 4,360 | |||||||
Recoveries: | |||||||||
Owner occupied commercial real estate | 1,034 | 69 | |||||||
Income producing commercial real estate | 141 | 20 | |||||||
Commercial & industrial | 376 | 163 | |||||||
Commercial construction | 141 | 394 | |||||||
Equipment financing | 356 | 143 | |||||||
Residential mortgage | 275 | 48 | |||||||
Home equity lines of credit | 103 | 122 | |||||||
Residential construction | 34 | 26 | |||||||
Consumer direct | 231 | 207 | |||||||
Indirect auto | — | 38 | |||||||
Total recoveries | 2,691 | 1,230 | |||||||
Net charge-offs | 8,114 | 3,130 | |||||||
Provision for credit losses - loans | 21,050 | 3,569 | |||||||
ACL - loans, end of period | 81,905 | 61,642 | |||||||
ACL - unfunded commitments, beginning of period | 3,458 | 3,410 | |||||||
Adoption of CECL | 1,871 | — | |||||||
ACL - unfunded commitments, adjusted beginning balance | 5,329 | 3,410 | |||||||
Provision for credit losses - unfunded commitments | 1,141 | (269 | ) | ||||||
ACL - unfunded commitments, end of period | 6,470 | 3,141 | |||||||
Total ACL | $ | 88,375 | $ | 64,783 | |||||
Total loans: | |||||||||
At period-end | $ | 8,935,424 | $ | 8,493,254 | |||||
Average | 8,828,880 | 8,429,976 | |||||||
ACL - loans, as a percentage of period-end loans | 0.92 | % | 0.73 | % | |||||
As a percentage of average loans (annualized): | |||||||||
Net charge-offs | 0.37 | 0.15 | |||||||
Provision for credit losses - loans | 0.96 | 0.17 |
March 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
Nonaccrual Loans | Foreclosed Properties | Total NPAs | Nonaccrual Loans | Foreclosed Properties | Total NPAs | ||||||||||||||||||
BY CATEGORY | |||||||||||||||||||||||
Owner occupied commercial real estate | $ | 7,030 | $ | 145 | $ | 7,175 | $ | 6,421 | $ | 170 | $ | 6,591 | |||||||||||
Income producing commercial real estate | 1,276 | — | 1,276 | 1,160 | — | 1,160 | |||||||||||||||||
Commercial & industrial | 1,666 | — | 1,666 | 1,417 | — | 1,417 | |||||||||||||||||
Commercial construction | 473 | 421 | 894 | 605 | 421 | 1,026 | |||||||||||||||||
Equipment financing | 1,813 | — | 1,813 | 2,677 | — | 2,677 | |||||||||||||||||
Total commercial | 12,258 | 566 | 12,824 | 12,280 | 591 | 12,871 | |||||||||||||||||
Residential mortgage | 8,281 | 336 | 8,617 | 8,035 | 654 | 8,689 | |||||||||||||||||
Home equity lines of credit | 2,233 | 185 | 2,418 | 2,360 | 60 | 2,420 | |||||||||||||||||
Residential construction | 347 | 40 | 387 | 288 | — | 288 | |||||||||||||||||
Consumer direct | 47 | — | 47 | 89 | — | 89 | |||||||||||||||||
Indirect auto | 458 | — | 458 | 726 | — | 726 | |||||||||||||||||
Total NPAs | $ | 23,624 | $ | 1,127 | $ | 24,751 | $ | 23,778 | $ | 1,305 | $ | 25,083 | |||||||||||
BY MARKET | |||||||||||||||||||||||
North Georgia | $ | 5,848 | $ | 430 | $ | 6,278 | $ | 6,527 | $ | 286 | $ | 6,813 | |||||||||||
Atlanta MSA | 1,951 | — | 1,951 | 1,578 | — | 1,578 | |||||||||||||||||
North Carolina | 3,464 | 484 | 3,948 | 3,259 | 743 | 4,002 | |||||||||||||||||
Coastal Georgia | 1,881 | — | 1,881 | 1,491 | — | 1,491 | |||||||||||||||||
Gainesville MSA | 187 | — | 187 | 479 | — | 479 | |||||||||||||||||
East Tennessee | 1,555 | — | 1,555 | 1,147 | — | 1,147 | |||||||||||||||||
South Carolina | 4,476 | 213 | 4,689 | 4,123 | 276 | 4,399 | |||||||||||||||||
Commercial Banking Solutions | 3,804 | — | 3,804 | 4,448 | — | 4,448 | |||||||||||||||||
Indirect auto | 458 | — | 458 | 726 | — | 726 | |||||||||||||||||
Total NPAs | $ | 23,624 | $ | 1,127 | $ | 24,751 | $ | 23,778 | $ | 1,305 | $ | 25,083 |
First Quarter 2019 | First Quarter 2018 | ||||||||||||||||||||||
Nonaccrual Loans | Foreclosed Properties | Total NPAs | Nonaccrual Loans | Foreclosed Properties | Total NPAs | ||||||||||||||||||
Beginning Balance | $ | 23,778 | $ | 1,305 | $ | 25,083 | $ | 23,658 | $ | 3,234 | $ | 26,892 | |||||||||||
Acquisitions | — | — | — | 428 | — | 428 | |||||||||||||||||
Loans placed on nonaccrual | 6,759 | — | 6,759 | 7,463 | — | 7,463 | |||||||||||||||||
Payments received | (3,520 | ) | — | (3,520 | ) | (3,534 | ) | — | (3,534 | ) | |||||||||||||
Loan charge-offs | (2,714 | ) | — | (2,714 | ) | (1,150 | ) | — | (1,150 | ) | |||||||||||||
Foreclosures | (679 | ) | 751 | 72 | (625 | ) | 625 | — | |||||||||||||||
Property sales | — | (974 | ) | (974 | ) | — | (957 | ) | (957 | ) | |||||||||||||
Write downs | — | (15 | ) | (15 | ) | — | (72 | ) | (72 | ) | |||||||||||||
Net gains (losses) on sales | — | 60 | 60 | — | (116 | ) | (116 | ) | |||||||||||||||
Ending Balance | $ | 23,624 | $ | 1,127 | $ | 24,751 | $ | 26,240 | $ | 2,714 | $ | 28,954 |
Table 8 - NPAs |
(in thousands) |
March 31, 2020 | December 31, 2019 | ||||||||
Nonaccrual loans: | |||||||||
Owner occupied commercial real estate | 10,405 | 10,544 | |||||||
Income producing commercial real estate | 2,235 | 1,996 | |||||||
Commercial & industrial | 3,169 | 2,545 | |||||||
Commercial construction | 1,724 | 2,277 | |||||||
Equipment financing | 2,439 | 3,141 | |||||||
Total commercial | 19,972 | 20,503 | |||||||
Residential mortgage | 12,458 | 10,567 | |||||||
Home equity lines of credit | 3,010 | 3,173 | |||||||
Residential construction | 540 | 939 | |||||||
Consumer | 228 | 159 | |||||||
Total nonaccrual loans | 36,208 | 35,341 | |||||||
Foreclosed properties/other real estate owned ("OREO") | 475 | 476 | |||||||
Total NPAs | $ | 36,683 | $ | 35,817 | |||||
Nonaccrual loans as a percentage of total loans | 0.41 | % | 0.40 | % | |||||
NPAs as a percentage of total loans and OREO | 0.41 | 0.41 | |||||||
NPAs as a percentage of total assets | 0.28 | 0.28 |
March 31, 2020 | December 31, 2019 | ||||||||
Noninterest-bearing demand | $ | 3,624,806 | $ | 3,477,979 | |||||
NOW and interest-bearing demand | 2,391,976 | 2,461,895 | |||||||
Money market and savings | 3,009,261 | 2,937,095 | |||||||
Time | 1,840,767 | 1,859,574 | |||||||
Total customer deposits | 10,866,810 | 10,736,543 | |||||||
Brokered deposits | 168,116 | 160,701 | |||||||
Total deposits | $ | 11,034,926 | $ | 10,897,244 |
Increase (Decrease) in Net Interest Revenue from Base Scenario at | ||||||||||||||
March 31, 2019 | December 31, 2018 | |||||||||||||
Change in Rates | Shock | Ramp | Shock | Ramp | ||||||||||
100 basis point increase | 1.91 | % | 1.29 | % | (0.37 | )% | (0.81 | )% | ||||||
100 basis point decrease | (3.45 | ) | (2.56 | ) | (2.89 | ) | (2.17 | ) |
Increase (Decrease) in Net Interest Revenue from Base Scenario at | ||||||||||||||
March 31, 2020 | December 31, 2019 | |||||||||||||
Change in Rates | Shock | Ramp | Shock | Ramp | ||||||||||
100 basis point increase | 3.60 | % | 2.63 | % | 2.91 | % | 2.22 | % | ||||||
100 basis point decrease | (2.02 | ) | (1.75 | ) | (4.86 | ) | (3.92 | ) |
Basel III Guidelines | United Community Banks, Inc. (Consolidated) | United Community Bank | United Community Banks, Inc. (Consolidated) | United Community Bank | |||||||||||||||||||||||||||||||||||||||
Minimum (1) | Well Capitalized | March 31, 2019 | December 31, 2018 | March 31, 2019 | December 31, 2018 | Minimum | Well Capitalized | Minimum Capital Plus Capital Conservation Buffer | March 31, 2020 | December 31, 2019 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
Risk-based ratios: | |||||||||||||||||||||||||||||||||||||||||||
Common equity tier 1 capital | 4.5 | % | 6.5 | % | 12.44 | % | 12.16 | % | 13.35 | % | 12.91 | % | 4.5 | % | 6.5 | % | 7.0 | % | 12.85 | % | 12.97 | % | 13.58 | % | 14.87 | % | |||||||||||||||||
Tier 1 capital | 6.0 | 8.0 | 12.69 | 12.42 | 13.35 | 12.91 | 6.0 | 8.0 | 8.5 | 13.09 | 13.21 | 13.58 | 14.87 | ||||||||||||||||||||||||||||||
Total capital | 8.0 | 10.0 | 14.55 | 14.29 | 14.04 | 13.60 | 8.0 | 10.0 | 10.5 | 14.93 | 15.01 | 14.30 | 15.54 | ||||||||||||||||||||||||||||||
Leverage ratio | 4.0 | 5.0 | 9.88 | 9.61 | 10.40 | 9.98 | 4.0 | 5.0 | N/A | 10.40 | 10.34 | 10.78 | 11.63 | ||||||||||||||||||||||||||||||
Common equity tier 1 capital | $ | 1,180,309 | $ | 1,148,355 | $ | 1,264,669 | $ | 1,216,449 | |||||||||||||||||||||||||||||||||||
Tier 1 capital | 1,204,559 | 1,172,605 | 1,264,669 | 1,216,449 | |||||||||||||||||||||||||||||||||||||||
Total capital | 1,380,963 | 1,348,843 | 1,329,452 | 1,281,062 | |||||||||||||||||||||||||||||||||||||||
Risk-weighted assets | 9,491,554 | 9,441,622 | 9,469,757 | 9,421,009 | |||||||||||||||||||||||||||||||||||||||
Average total assets | 12,186,441 | 12,207,986 | 12,159,520 | 12,183,341 |
2019 | 2018 | |||||||||||||||||||||||||||||
High | Low | Close | Avg Daily Volume | High | Low | Close | Avg Daily Volume | |||||||||||||||||||||||
First quarter | $ | 29.79 | $ | 21.19 | $ | 24.93 | 507,207 | $ | 33.60 | $ | 27.73 | $ | 31.65 | 529,613 | ||||||||||||||||
Second quarter | 34.18 | 30.52 | 30.67 | 402,230 | ||||||||||||||||||||||||||
Third quarter | 31.93 | 27.82 | 27.89 | 414,541 | ||||||||||||||||||||||||||
Fourth quarter | 28.88 | 20.23 | 21.46 | 509,152 |
(Dollars in thousands, except for per share amounts) | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||
January 1, 2019 - January 31, 2019 | 95,000 | $ | 26.13 | 95,000 | $ | 47,518 | ||||||||
February 1, 2019 - February 28, 2019 | 81,600 | 26.61 | 81,600 | 45,347 | ||||||||||
March 1, 2019 - March 31, 2019 | 128,452 | 24.80 | 128,452 | 42,160 | ||||||||||
Total | 305,052 | $ | 25.70 | 305,052 | $ | 42,160 |
(Dollars in thousands, except for per share amounts) | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||
January 1, 2020 - January 31, 2020 | 139,013 | $ | 28.39 | 139,013 | $ | 46,053 | ||||||||
February 1, 2020 - February 29, 2020 | 282,469 | 27.47 | 282,469 | 38,294 | ||||||||||
March 1, 2020 - March 31, 2020 | 405,000 | 22.41 | 405,000 | 29,218 | ||||||||||
Total | 826,482 | $ | 25.14 | 826,482 | $ | 29,218 |
Exhibit No. | Description | |
Interactive data files for United Community Bank, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, formatted in Inline XBRL: (i) the Consolidated Balance Sheets (unaudited); (ii) the Consolidated Statements of Income (unaudited); (iii) the Consolidated Statements of Comprehensive Income (unaudited); (iv) the Condensed Consolidated Statements in Shareholders’ Equity (unaudited); (v) the Condensed Consolidated Statements of Cash Flows (unaudited); and (vi) the Notes to Condensed Consolidated Financial Statements (unaudited). | ||
The cover page from United Community Bank’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 (formatted in Inline XBRL | ||
# | Management contract or compensatory plan or arrangement. |
UNITED COMMUNITY BANKS, INC. | |
/s/ H. Lynn Harton | |
H. Lynn Harton | |
President and Chief Executive Officer | |
(Principal Executive Officer) | |
/s/ Jefferson L. Harralson | |
Jefferson L. Harralson | |
Executive Vice President and Chief Financial Officer | |
(Principal Financial Officer) | |
/s/ Alan H. Kumler | |
Alan H. Kumler | |
Senior Vice President and Chief Accounting Officer | |
(Principal Accounting Officer) | |
Date: May |