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 1934Washington, March 31,West Virginia 55-0641179 (§ Non-accelerated filer ☐ Securities registered pursuant to Section 12(b) of the Act:Title of each classTradingSymbol(s)Name of each exchangeon which registeredCommon Stock, par value $2.50 per shareUBSINASDAQ Global Select MarketApril 30,102,095,661
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Item 1. | FINANCIAL STATEMENTS (UNAUDITED) |
March 31 2019 | December 31 2018 | |||||||
(Unaudited) | (Note 1) | |||||||
Assets | ||||||||
Cash and due from banks | $ | 201,777 | $ | 187,886 | ||||
Interest-bearing deposits with other banks | 970,072 | 831,707 | ||||||
Federal funds sold | 808 | 803 | ||||||
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Total cash and cash equivalents | 1,172,657 | 1,020,396 | ||||||
Securities available for sale at estimated fair value (amortized cost-$2,386,010 at March 31, 2019 and $2,360,884 at December 31, 2018) | 2,384,055 | 2,337,039 | ||||||
Securities held to maturity (estimated fair value-$8,549 at March 31, 2019 and $18,655 at December 31, 2018) | 8,491 | 19,999 | ||||||
Equity securities at estimated fair value | 9,921 | 9,734 | ||||||
Other investment securities | 190,123 | 176,955 | ||||||
Loans held for sale (at fair value-$244,501 at March 31, 2019 and $247,104 at December 31, 2018) | 245,763 | 249,846 | ||||||
Loans | 13,578,218 | 13,429,532 | ||||||
Less: Unearned income | (5,515 | ) | (7,310 | ) | ||||
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Loans net of unearned income | 13,572,703 | 13,422,222 | ||||||
Less: Allowance for loan losses | (76,886 | ) | (76,703 | ) | ||||
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Net loans | 13,495,817 | 13,345,519 | ||||||
Bank premises and equipment | 94,545 | 95,245 | ||||||
Operating leaseright-of-use assets | 63,119 | 0 | ||||||
Goodwill | 1,478,014 | 1,478,014 | ||||||
Accrued interest receivable | 64,347 | 60,597 | ||||||
Other assets | 438,281 | 457,154 | ||||||
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TOTAL ASSETS | $ | 19,645,133 | $ | 19,250,498 | ||||
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Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 4,370,577 | $ | 4,416,815 | ||||
Interest-bearing | 9,788,820 | 9,577,934 | ||||||
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Total deposits | 14,159,397 | 13,994,749 | ||||||
Borrowings: | ||||||||
Federal funds purchased | 0 | 23,400 | ||||||
Securities sold under agreements to repurchase | 127,821 | 152,927 | ||||||
Federal Home Loan Bank borrowings | 1,603,615 | 1,439,198 | ||||||
Other long-term borrowings | 235,220 | 234,905 | ||||||
Reserve for lending-related commitments | 1,461 | 1,389 | ||||||
Operating lease liabilities | 66,871 | 0 | ||||||
Accrued expenses and other liabilities | 163,857 | 152,306 | ||||||
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TOTAL LIABILITIES | 16,358,242 | 15,998,874 | ||||||
Shareholders’ Equity | ||||||||
Preferred stock, $1.00 par value;Authorized-50,000,000 shares, none issued | 0 | 0 | ||||||
Common stock, $2.50 par value;Authorized-200,000,000 shares;issued-105,399,364 and 105,239,121 at March 31, 2019 and December 31, 2018, respectively, including 3,281,335 and 2,915,633 shares in treasury at March 31, 2019 and December 31, 2018, respectively | 263,498 | 263,098 | ||||||
Surplus | 2,135,818 | 2,134,462 | ||||||
Retained earnings | 1,040,871 | 1,013,037 | ||||||
Accumulated other comprehensive loss | (39,270 | ) | (57,019 | ) | ||||
Treasury stock, at cost | (114,026 | ) | (101,954 | ) | ||||
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TOTAL SHAREHOLDERS’ EQUITY | 3,286,891 | 3,251,624 | ||||||
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 19,645,133 | $ | 19,250,498 | ||||
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September 30 | December 31 | |||||||
2019 | 2018 | |||||||
(Unaudited) | (Note 1) | |||||||
Assets | ||||||||
Cash and due from banks | $ | 228,005 | $ | 187,886 | ||||
Interest-bearing deposits with other banks | 747,332 | 831,707 | ||||||
Federal funds sold | 817 | 803 | ||||||
Total cash and cash equivalents | 976,154 | 1,020,396 | ||||||
Securities available for sale at estimated fair value (amortized cost-$2,425,849 at September 30, 2019 and $2,360,884 at December 31, 2018) | 2,452,097 | 2,337,039 | ||||||
Securities held to maturity (estimated fair value-$1,472 at September 30, 2019 and $18,655 at December 31, 2018) | 1,471 | 19,999 | ||||||
Equity securities at estimated fair value | 8,914 | 9,734 | ||||||
Other investment securities | 210,830 | 176,955 | ||||||
Loans held for sale (at fair value-$407,463 at September 30, 2019 and $247,104 at December 31, 2018) | 412,194 | 249,846 | ||||||
Loans | 13,637,238 | 13,429,532 | ||||||
Less: Unearned income | (3,811 | ) | (7,310 | ) | ||||
Loans net of unearned income | 13,633,427 | 13,422,222 | ||||||
Less: Allowance for loan losses | (77,098 | ) | (76,703 | ) | ||||
Net loans | 13,556,329 | 13,345,519 | ||||||
Bank premises and equipment | 94,800 | 95,245 | ||||||
Operating lease right-of-use assets | 60,318 | 0 | ||||||
Goodwill | 1,478,014 | 1,478,014 | ||||||
Accrued interest receivable | 57,626 | 60,597 | ||||||
Other assets | 442,714 | 457,154 | ||||||
TOTAL ASSETS | $ | 19,751,461 | $ | 19,250,498 | ||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 4,572,122 | $ | 4,416,815 | ||||
Interest-bearing | 9,523,289 | 9,577,934 | ||||||
Total deposits | 14,095,411 | 13,994,749 | ||||||
Borrowings: | ||||||||
Federal funds purchased | 0 | 23,400 | ||||||
Securities sold under agreements to repurchase | 129,966 | 152,927 | ||||||
Federal Home Loan Bank (FHLB) borrowings | 1,672,448 | 1,439,198 | ||||||
Other long-term borrowings | 235,849 | 234,905 | ||||||
Reserve for lending-related commitments | 1,776 | 1,389 | ||||||
Operating lease liabilities | 63,987 | 0 | ||||||
Accrued expenses and other liabilities | 197,682 | 152,306 | ||||||
TOTAL LIABILITIES | 16,397,119 | 15,998,874 | ||||||
Shareholders’ Equity | ||||||||
Preferred stock, $1.00 par value; Authorized-50,000,000 shares, NaN issued | 0 | 0 | ||||||
Common stock, $2.50 par value; Authorized-200,000,000 shares;issued-105,464,161 and 105,239,121 at September 30, 2019 and December 31, 2018, respectively, including 3,908,465 and 2,915,633 shares in treasury at September 30, 2019 and December 31, 2018, respectively | 263,660 | 263,098 | ||||||
Surplus | 2,138,240 | 2,134,462 | ||||||
Retained earnings | 1,104,837 | 1,013,037 | ||||||
Accumulated other comprehensive loss | (15,781 | ) | (57,019 | ) | ||||
Treasury stock, at cost | (136,614 | ) | (101,954 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY | 3,354,342 | 3,251,624 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 19,751,461 | $ | 19,250,498 | ||||
(Dollars in thousands, except per share data)
Three Months Ended March 31 | ||||||||
2019 | 2018 | |||||||
Interest income | ||||||||
Interest and fees on loans | $ | 164,871 | $ | 148,928 | ||||
Interest on federal funds sold and other short-term investments | 5,837 | 4,917 | ||||||
Interest and dividends on securities: | ||||||||
Taxable | 17,363 | 11,875 | ||||||
Tax-exempt | 1,026 | 1,465 | ||||||
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Total interest income | 189,097 | 167,185 | ||||||
Interest expense | ||||||||
Interest on deposits | 32,638 | 15,657 | ||||||
Interest on short-term borrowings | 691 | 421 | ||||||
Interest on long-term borrowings | 11,600 | 7,064 | ||||||
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Total interest expense | 44,929 | 23,142 | ||||||
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Net interest income | 144,168 | 144,043 | ||||||
Provision for loan losses | 4,996 | 5,178 | ||||||
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Net interest income after provision for loan losses | 139,172 | 138,865 | ||||||
Other income | ||||||||
Fees from trust services | 3,264 | 3,091 | ||||||
Fees from brokerage services | 2,524 | 2,224 | ||||||
Fees from deposit services | 8,053 | 8,230 | ||||||
Bankcard fees and merchant discounts | 1,156 | 1,356 | ||||||
Other service charges, commissions, and fees | 521 | 509 | ||||||
Income from bank-owned life insurance | 1,827 | 1,254 | ||||||
Income from mortgage banking activities | 13,681 | 14,570 | ||||||
Net investment securities losses | (159 | ) | (485 | ) | ||||
Other income | 356 | 443 | ||||||
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Total other income | 31,223 | 31,192 | ||||||
Other expense | ||||||||
Employee compensation | 38,949 | 40,836 | ||||||
Employee benefits | 9,431 | 9,571 | ||||||
Net occupancy expense | 8,751 | 9,427 | ||||||
Other real estate owned (OREO) expense | 1,416 | 946 | ||||||
Equipment expense | 3,315 | 3,157 | ||||||
Data processing expense | 5,162 | 5,850 | ||||||
Bankcard processing expense | 480 | 466 | ||||||
FDIC insurance expense | 3,300 | 1,848 | ||||||
Other expense | 18,621 | 18,351 | ||||||
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Total other expense | 89,425 | 90,452 | ||||||
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Income before income taxes | 80,970 | 79,605 | ||||||
Income taxes | 17,328 | 17,899 | ||||||
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Net income | $ | 63,642 | $ | 61,706 | ||||
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CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - continued
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Earnings per common share: Basic Diluted Average outstanding shares: Basic Diluted Three Months Ended
March 31 2019 2018 $ 0.62 $ 0.59 $ 0.62 $ 0.59 101,894,786 104,859,427 102,162,704 105,162,858
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Interest income | ||||||||||||||||
Interest and fees on loans | $ | 165,149 | $ | 164,229 | $ | 505,150 | $ | 472,451 | ||||||||
Interest on federal funds sold and other short-term investments | 6,236 | 5,485 | 17,478 | 13,867 | ||||||||||||
Interest and dividends on securities: | ||||||||||||||||
Taxable | 18,168 | 13,994 | 53,279 | 39,679 | ||||||||||||
Tax-exempt | 798 | 1,322 | 2,786 | 4,218 | ||||||||||||
Total interest income | 190,351 | 185,030 | 578,693 | 530,215 | ||||||||||||
Interest expense | ||||||||||||||||
Interest on deposits | 36,368 | 26,368 | 104,461 | 61,101 | ||||||||||||
Interest on short-term borrowings | 539 | 618 | 1,838 | 1,503 | ||||||||||||
Interest on long-term borrowings | 11,526 | 9,269 | 35,755 | 25,671 | ||||||||||||
Total interest expense | 48,433 | 36,255 | 142,054 | 88,275 | ||||||||||||
Net interest income | 141,918 | 148,775 | 436,639 | 441,940 | ||||||||||||
Provision for loan losses | 5,033 | 4,808 | 15,446 | 16,190 | ||||||||||||
Net interest income after provision for loan losses | 136,885 | 143,967 | 421,193 | 425,750 | ||||||||||||
Other income | ||||||||||||||||
Fees from trust services | 3,574 | 3,350 | 10,276 | 9,545 | ||||||||||||
Fees from brokerage services | 2,378 | 2,787 | 7,668 | 6,964 | ||||||||||||
Fees from deposit services | 8,702 | 8,673 | 25,219 | 25,323 | ||||||||||||
Bankcard fees and merchant discounts | 1,262 | 1,549 | 3,520 | 4,384 | ||||||||||||
Other service charges, commissions, and fees | 568 | 532 | 1,665 | 1,640 | ||||||||||||
Income from bank-owned life insurance | 1,280 | 1,251 | 4,433 | 3,776 | ||||||||||||
Income from mortgage banking activities | 24,019 | 13,277 | 59,404 | 46,539 | ||||||||||||
Net investment securities gains (losses) | 116 | (152 | ) | 66 | (692 | ) | ||||||||||
Other income | 325 | 419 | 991 | 1,406 | ||||||||||||
Total other income | 42,224 | 31,686 | 113,242 | 98,885 | ||||||||||||
Other expense | ||||||||||||||||
Employee compensation | 46,313 | 41,312 | 129,563 | 125,268 | ||||||||||||
Employee benefits | 8,615 | 8,645 | 26,624 | 27,514 | ||||||||||||
Net occupancy expense | 8,698 | 9,273 | 26,116 | 27,776 | ||||||||||||
Other real estate owned (OREO) expense | 1,837 | 921 | 3,886 | 2,423 | ||||||||||||
Equipment expense | 3,698 | 3,892 | 10,688 | 10,328 | ||||||||||||
Data processing expense | 5,776 | 6,068 | 16,505 | 17,735 | ||||||||||||
Bankcard processing expense | 474 | 485 | 1,402 | 1,431 | ||||||||||||
FDIC insurance expense | 465 | 3,530 | 7,065 | 8,220 | ||||||||||||
FHLB prepayment penalties | 0 | 0 | 5,105 | 0 | ||||||||||||
Other expense | 20,258 | 19,189 | 58,800 | 56,482 | ||||||||||||
Total other expense | 96,134 | 93,315 | 285,754 | 277,177 | ||||||||||||
Income before income taxes | 82,975 | 82,338 | 248,681 | 247,458 | ||||||||||||
Income taxes | 17,010 | 17,926 | 51,867 | 55,066 | ||||||||||||
Net income | $ | 65,965 | $ | 64,412 | $ | 196,814 | $ | 192,392 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.65 | $ | 0.62 | $ | 1.93 | $ | 1.84 | ||||||||
Diluted | $ | 0.65 | $ | 0.62 | $ | 1.93 | $ | 1.83 | ||||||||
Average outstanding shares: | ||||||||||||||||
Basic | 101,432,243 | 103,617,590 | 101,698,530 | 104,382,094 | ||||||||||||
Diluted | 101,711,740 | 103,933,959 | 101,967,135 | 104,679,876 |
Three Months Ended March 31 | ||||||||
2019 | 2018 | |||||||
Net income | $ | 63,642 | $ | 61,706 | ||||
Change in net unrealized gain (loss) on available for sale (AFS) securities, net of tax | 16,789 | (16,773 | ) | |||||
Accretion of the net unrealized loss on the transfer of AFS securities to held to maturity (HTM) securities, net of tax | 0 | 1 | ||||||
Change in defined benefit pension plan, net of tax | 910 | 733 | ||||||
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Comprehensive income, net of tax | $ | 81,341 | $ | 45,667 | ||||
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Three Months Ended | Nine Months Ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income | $ | 65,965 | $ | 64,412 | $ | 196,814 | $ | 192,392 | ||||||||
Change in net unrealized gain (loss) on available-for-sale (AFS) securities, net of tax | 3,637 | (7,579 | ) | 38,420 | (30,853 | ) | ||||||||||
Accretion of the net unrealized loss on the transfer of AFS securities to held-to-maturity (HTM) securities, net of tax | 0 | 2 | 0 | 4 | ||||||||||||
Change in pension plan assets, net of tax | 949 | 918 | 2,768 | 2,703 | ||||||||||||
Comprehensive income, net of tax | $ | 70,551 | $ | 57,753 | $ | 238,002 | $ | 164,246 | ||||||||
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||
Common Stock | Other | Total | ||||||||||||||||||||||||||
Par | Retained | Comprehensive | Treasury | Shareholders’ | ||||||||||||||||||||||||
Shares | Value | Surplus | Earnings | Income (Loss) | Stock | Equity | ||||||||||||||||||||||
Balance at January 1, 2019 | 105,239,121 | $ | 263,098 | $ | 2,134,462 | $ | 1,013,037 | $ | (57,019 | ) | $ | (101,954 | ) | $ | 3,251,624 | |||||||||||||
Cumulative effect of adopting Accounting Standard Update 2016-02 | 0 | 0 | 0 | (1,049 | ) | 0 | 0 | (1,049 | ) | |||||||||||||||||||
Reclass due to adopting Accounting Standard Update 2017-12 | 0 | 0 | 0 | 0 | 50 | 0 | 50 | |||||||||||||||||||||
Comprehensive income | ||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 63,642 | 0 | 0 | 63,642 | |||||||||||||||||||||
Other comprehensive income, net of tax | 0 | 0 | 0 | 0 | 17,699 | 0 | 17,699 | |||||||||||||||||||||
Total comprehensive income, net of tax | 81,341 | |||||||||||||||||||||||||||
Stock based compensation expense | 0 | 0 | 1,113 | 0 | 0 | 0 | 1,113 | |||||||||||||||||||||
Purchase of treasury stock (365,702 shares) | 0 | 0 | 0 | 0 | 0 | (12,072 | ) | (12,072 | ) | |||||||||||||||||||
Cash dividends ($0.34 per share) | 0 | 0 | 0 | (34,759 | ) | 0 | 0 | (34,759 | ) | |||||||||||||||||||
Grant of restricted stock (126,427 shares) | 126,427 | 316 | (316 | ) | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Common stock options exercised (33,816 shares) | 33,816 | 84 | 559 | 0 | 0 | 0 | 643 | |||||||||||||||||||||
Balance at March 31, 2019 | 105,399,364 | 263,498 | 2,135,818 | 1,040,871 | (39,270 | ) | (114,026 | ) | 3,286,891 | |||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 67,207 | 0 | 0 | 67,207 | |||||||||||||||||||||
Other comprehensive income, net of tax | 0 | 0 | 0 | 0 | 18,903 | 0 | 18,903 | |||||||||||||||||||||
Total comprehensive income, net of tax | 86,110 | |||||||||||||||||||||||||||
Stock based compensation expense | 0 | 0 | 1,198 | 0 | 0 | 0 | 1,198 | |||||||||||||||||||||
Purchase of treasury stock (166,604 shares) | 0 | 0 | 0 | 0 | 0 | (6,032 | ) | (6,032 | ) | |||||||||||||||||||
Cash dividends ($0.34 per share) | 0 | 0 | 0 | (34,688 | ) | 0 | 0 | (34,688 | ) | |||||||||||||||||||
Forfeiture of restricted stock (2,539 shares) | 0 | 0 | 100 | 0 | 0 | (100 | ) | 0 | ||||||||||||||||||||
Common stock options exercised (14,144 shares) | 14,144 | 36 | 343 | 0 | 0 | 0 | 379 | |||||||||||||||||||||
Balance at June 30, 2019 | 105,413,508 | 263,534 | 2,137,459 | 1,073,390 | (20,367 | ) | (120,158 | ) | 3,333,858 | |||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 65,965 | 0 | 0 | 65,965 | |||||||||||||||||||||
Other comprehensive income, net of tax | 0 | 0 | 0 | 0 | 4,586 | 0 | 4,586 | |||||||||||||||||||||
Total comprehensive income, net of tax | 70,551 | |||||||||||||||||||||||||||
Stock based compensation expense | 0 | 0 | 1,194 | 0 | 0 | 0 | 1,194 | |||||||||||||||||||||
Distribution of treasury stock for deferred compensation plan (27 shares) | 0 | 0 | 0 | 0 | 0 | 1 | 1 | |||||||||||||||||||||
Purchase of treasury stock (456,404 shares) | 0 | 0 | 0 | 0 | 0 | (16,395 | ) | (16,395 | ) | |||||||||||||||||||
Cash dividends ($0.34 per share) | 0 | 0 | 0 | (34,518 | ) | 0 | 0 | (34,518 | ) | |||||||||||||||||||
Forfeiture of restricted stock (1,610 shares) | 0 | 0 | 62 | 0 | 0 | (62 | ) | 0 | ||||||||||||||||||||
Common stock options exercised (50,653 shares) | 50,653 | 126 | (475 | ) | 0 | 0 | 0 | (349 | ) | |||||||||||||||||||
Balance at September 30, 2019 | 105,464,161 | $ | 263,660 | $ | 2,138,240 | $ | 1,104,837 | $ | (15,781 | ) | $ | (136,614 | ) | $ | 3,354,342 | |||||||||||||
- continued
Three Months Ended March 31, 2019 | ||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||
Common Stock | Other | Total | ||||||||||||||||||||||||||
Par | Retained | Comprehensive | Treasury | Shareholders’ | ||||||||||||||||||||||||
Shares | Value | Surplus | Earnings | Income (Loss) | Stock | Equity | ||||||||||||||||||||||
Balance at January 1, 2019 | 105,239,121 | $ | 263,098 | $ | 2,134,462 | $ | 1,013,037 | ($ | 57,019 | ) | ($ | 101,954 | ) | $ | 3,251,624 | |||||||||||||
Cumulative effect of adopting Accounting Standard Update2016-02 | 0 | 0 | 0 | (1,049 | ) | 0 | 0 | (1,049 | ) | |||||||||||||||||||
Reclass due to adopting Accounting Standard Update2017-12 | 0 | 0 | 0 | 0 | 50 | 0 | 50 | |||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 63,642 | 0 | 0 | 63,642 | |||||||||||||||||||||
Other comprehensive income, net of tax | 0 | 0 | 0 | 0 | 17,699 | 0 | 17,699 | |||||||||||||||||||||
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Total comprehensive income, net of tax | 81,341 | |||||||||||||||||||||||||||
Stock based compensation expense | 0 | 0 | 1,113 | 0 | 0 | 0 | 1,113 | |||||||||||||||||||||
Purchase of treasury stock (365,702 shares) | 0 | 0 | 0 | 0 | 0 | (12,072 | ) | (12,072 | ) | |||||||||||||||||||
Cash dividends ($0.34 per share) | 0 | (34,759 | ) | 0 | 0 | (34,759 | ) | |||||||||||||||||||||
Grant of restricted stock (126,427 shares) | 126,427 | 316 | (316 | ) | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Common stock options exercised (33,816 shares) | 33,816 | 84 | 559 | 0 | 0 | 0 | 643 | |||||||||||||||||||||
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Balance at March 31, 2019 | 105,399,364 | $ | 263,498 | $ | 2,135,818 | $ | 1,040,871 | ($ | 39,270 | ) | ($ | 114,026 | ) | $ | 3,286,891 | |||||||||||||
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Three Months Ended March 31, 2018 | ||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||
Common Stock | Other | Total | ||||||||||||||||||||||||||
Par | Retained | Comprehensive | Treasury | Shareholders’ | ||||||||||||||||||||||||
Shares | Value | Surplus | Earnings | Income (Loss) | Stock | Equity | ||||||||||||||||||||||
Balance at January 1, 2018 | 105,069,821 | $ | 262,675 | $ | 2,129,077 | $ | 891,816 | ($ | 42,025 | ) | ($ | 1,013 | ) | $ | 3,240,530 | |||||||||||||
Cumulative effect of adopting Accounting Standard Update2016-01 | 0 | 0 | 0 | 136 | (136 | ) | 0 | 0 | ||||||||||||||||||||
Reclass due to adopting Accounting Standard Update2018-02 | 0 | 0 | 0 | 6,353 | (6,353 | ) | 0 | 0 | ||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 61,706 | 0 | 0 | 61,706 | |||||||||||||||||||||
Other comprehensive income, net of tax | 0 | 0 | 0 | 0 | (16,039 | ) | 0 | (16,039 | ) | |||||||||||||||||||
|
| |||||||||||||||||||||||||||
Total comprehensive income, net of tax | 45,667 | |||||||||||||||||||||||||||
Stock based compensation expense | 0 | 0 | 968 | 0 | 0 | 0 | 968 | |||||||||||||||||||||
Purchase of treasury stock (10,842 shares) | 0 | 0 | 0 | 0 | 0 | (404 | ) | (404 | ) | |||||||||||||||||||
Cash dividends ($0.34 per share) | 0 | (35,748 | ) | 0 | 0 | (35,748 | ) | |||||||||||||||||||||
Grant of restricted stock (97,004 shares) | 97,004 | 243 | (243 | ) | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Forfeiture of restricted stock (683 shares) | 0 | 0 | 27 | 0 | 0 | (27 | ) | 0 | ||||||||||||||||||||
Common stock options exercised (15,043 shares) | 15,043 | 37 | 263 | 0 | 0 | 0 | 300 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Balance at March 31, 2018 | 105,181,868 | $ | 262,955 | $ | 2,130,092 | $ | 924,263 | ($ | 64,553 | ) | ($ | 1,444 | ) | $ | 3,251,313 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||
Common Stock | Other | Total | ||||||||||||||||||||||||||
Par | Retained | Comprehensive | Treasury | Shareholders’ | ||||||||||||||||||||||||
Shares | Value | Surplus | Earnings | Income (Loss) | Stock | Equity | ||||||||||||||||||||||
Balance at January 1, 2018 | 105,069,821 | $ | 262,675 | $ | 2,129,077 | $ | 891,816 | $ | (42,025 | ) | $ | (1,013 | ) | $ | 3,240,530 | |||||||||||||
Cumulative effect of adopting Accounting Standard Update 2016-01 | 0 | 0 | 0 | 136 | (136 | ) | 0 | 0 | ||||||||||||||||||||
Reclass due to adopting Accounting Standard Update 2018-02 | 0 | 0 | 0 | 6,353 | (6,353 | ) | 0 | 0 | ||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 61,706 | 0 | 0 | 61,706 | |||||||||||||||||||||
Other comprehensive income, net of tax | 0 | 0 | 0 | 0 | (16,039 | ) | 0 | (16,039 | ) | |||||||||||||||||||
Total comprehensive income, net of tax | 45,667 | |||||||||||||||||||||||||||
Stock based compensation expense | 0 | 0 | 968 | 0 | 0 | 0 | 968 | |||||||||||||||||||||
Purchase of treasury stock (10,842 shares) | 0 | 0 | 0 | 0 | 0 | (404 | ) | (404 | ) | |||||||||||||||||||
Cash dividends ($0.34 per share) | 0 | (35,748 | ) | 0 | 0 | (35,748 | ) | |||||||||||||||||||||
Grant of restricted stock (97,004 shares) | 97,004 | 243 | (243 | ) | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Forfeiture of restricted stock (683 shares) | 0 | 0 | 27 | 0 | 0 | (27 | ) | 0 | ||||||||||||||||||||
Common stock options exercised (15,043 shares) | 15,043 | 37 | 263 | 0 | 0 | 0 | 300 | |||||||||||||||||||||
Balance at March 31, 2018 | 105,181,868 | 262,955 | 2,130,092 | 924,263 | (64,553 | ) | (1,444 | ) | 3,251,313 | |||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 66,274 | 0 | 0 | 66,274 | |||||||||||||||||||||
Other comprehensive income, net of tax | 0 | 0 | 0 | 0 | (5,448 | ) | 0 | (5,448 | ) | |||||||||||||||||||
Total comprehensive income, net of tax | 60,826 | |||||||||||||||||||||||||||
Stock based compensation expense | 0 | 0 | 1,024 | 0 | 0 | 0 | 1,024 | |||||||||||||||||||||
Purchase of treasury stock (962,504 shares) | 0 | 0 | 0 | 0 | 0 | (35,580 | ) | (35,580 | ) | |||||||||||||||||||
Cash dividends ($0.34 per share) | 0 | 0 | 0 | (35,584 | ) | 0 | 0 | (35,584 | ) | |||||||||||||||||||
Forfeiture of restricted stock (2,170 shares) | 0 | 0 | 82 | 0 | 0 | (82 | ) | 0 | ||||||||||||||||||||
Common stock options exercised (27,046 shares) | 27,046 | 67 | 499 | 0 | 0 | 0 | 566 | |||||||||||||||||||||
Balance at June 30, 2018 | 105,208,914 | 263,022 | 2,131,697 | 954,953 | (70,001 | ) | (37,106 | ) | 3,242,565 | |||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 64,412 | 0 | 0 | 64,412 | |||||||||||||||||||||
Other comprehensive income, net of tax | 0 | 0 | 0 | 0 | (6,659 | ) | 0 | (6,659 | ) | |||||||||||||||||||
Total comprehensive income, net of tax | 57,753 | |||||||||||||||||||||||||||
Stock based compensation expense | 0 | 0 | 1,024 | 0 | 0 | 0 | 1,024 | |||||||||||||||||||||
Purchase of treasury stock (414,404 shares) | 0 | 0 | 0 | 0 | 0 | (15,339 | ) | (15,339 | ) | |||||||||||||||||||
Distribution of treasury stock from deferred compensation plan (26 shares) | 0 | 0 | 0 | 0 | 0 | 1 | 1 | |||||||||||||||||||||
Cash dividends ($0.34 per share) | 0 | 0 | 0 | (35,303 | ) | 0 | 0 | (35,303 | ) | |||||||||||||||||||
Forfeiture of restricted stock (1,400 shares) | 0 | 0 | 55 | 0 | 0 | (55 | ) | 0 | ||||||||||||||||||||
Common stock options exercised (18,072 shares) | 18,072 | 46 | 381 | 0 | 0 | 0 | 427 | |||||||||||||||||||||
Balance at September 30, 2018 | 105,226,986 | $ | 263,068 | $ | 2,133,157 | $ | 984,062 | $ | (76,660 | ) | $ | (52,499 | ) | $ | 3,251,128 | |||||||||||||
Three Months Ended March 31 | ||||||||
2019 | 2018 | |||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | $ | 93,247 | $ | 158,484 | ||||
INVESTING ACTIVITIES | ||||||||
Proceeds from maturities and calls of securities held to maturity | 0 | 1 | ||||||
Proceeds from sales of securities available for sale | 133,783 | 36,850 | ||||||
Proceeds from maturities and calls of securities available for sale | 62,548 | 66,067 | ||||||
Purchases of securities available for sale | (211,217 | ) | (330,031 | ) | ||||
Proceeds from sales of equity securities | 439 | 159 | ||||||
Purchases of equity securities | (437 | ) | (181 | ) | ||||
Proceeds from sales and redemptions of other investment securities | 27,766 | 9,046 | ||||||
Purchases of other investment securities | (40,934 | ) | (3,672 | ) | ||||
Redemption of bank-owned life insurance policies | 2,147 | 0 | ||||||
Purchases of bank premises and equipment | (1,754 | ) | (756 | ) | ||||
Proceeds from sales of bank premises and equipment | 251 | 1 | ||||||
Proceeds from the sales of OREO properties | 1,057 | 3,433 | ||||||
Net change in loans | (149,572 | ) | 32,091 | |||||
|
|
|
| |||||
NET CASH USED IN INVESTING ACTIVITIES | (175,923 | ) | (186,992 | ) | ||||
|
|
|
| |||||
FINANCING ACTIVITIES | ||||||||
Cash dividends paid | (34,974 | ) | (35,713 | ) | ||||
Acquisition of treasury stock | (12,072 | ) | (404 | ) | ||||
Proceeds from exercise of stock options | 643 | 300 | ||||||
Repayment of long-term Federal Home Loan Bank borrowings | (960,000 | ) | (625,000 | ) | ||||
Proceeds from issuance of long-term Federal Home Loan Bank borrowings | 1,300,000 | 615,000 | ||||||
Repayment of trust preferred issuance | 0 | (9,374 | ) | |||||
Changes in: | ||||||||
Deposits | 164,846 | (184,097 | ) | |||||
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings | (223,506 | ) | (259,201 | ) | ||||
|
|
|
| |||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 234,937 | (498,489 | ) | |||||
|
|
|
| |||||
Increase (Decrease) in cash and cash equivalents | 152,261 | (526,997 | ) | |||||
Cash and cash equivalents at beginning of year | 1,020,396 | 1,666,167 | ||||||
|
|
|
| |||||
Cash and cash equivalents at end of period | $ | 1,172,657 | $ | 1,139,170 | ||||
|
|
|
| |||||
Supplemental information | ||||||||
Noncash investing activities: | ||||||||
Transfers of loans to OREO | $ | 2,822 | $ | 527 | ||||
Transfer of held to maturity debt securities to available for sale debt securities | 11,544 | 0 |
Nine Months Ended | ||||||||
September 30 | ||||||||
2019 | 2018 | |||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | $ | 90,956 | $ | 218,771 | ||||
INVESTING ACTIVITIES | ||||||||
Proceeds from maturities and calls of securities held to maturity | 6,975 | 2 | ||||||
Proceeds from sales of securities available for sale | 333,414 | 86,061 | ||||||
Proceeds from maturities and calls of securities available for sale | 240,260 | 201,107 | ||||||
Purchases of securities available for sale | (630,162 | ) | (629,760 | ) | ||||
Proceeds from sales of equity securities | 1,865 | 1,825 | ||||||
Purchases of equity securities | (742 | ) | (598 | ) | ||||
Proceeds from sales and redemptions of other investment securities | 80,281 | 35,987 | ||||||
Purchases of other investment securities | (114,156 | ) | (45,075 | ) | ||||
Redemption of bank-owned life insurance policies | 2,829 | 0 | ||||||
Purchases of bank premises and equipment | (6,800 | ) | (4,439 | ) | ||||
Proceeds from sales of bank premises and equipment | 251 | 2,171 | ||||||
Proceeds from the sales of OREO properties | 4,620 | 9,105 | ||||||
Net change in loans | (205,480 | ) | (248,623 | ) | ||||
NET CASH USED IN INVESTING ACTIVITIES | (286,845 | ) | (592,237 | ) | ||||
FINANCING ACTIVITIES | ||||||||
Cash dividends paid | (104,421 | ) | (107,046 | ) | ||||
Acquisition of treasury stock | (34,499 | ) | (51,323 | ) | ||||
Proceeds from exercise of stock options | 672 | 1,277 | ||||||
Repayment of long-term Federal Home Loan Bank borrowings | (1,115,000 | ) | (635,000 | ) | ||||
Proceeds from issuance of long-term Federal Home Loan Bank borrowings | 1,325,000 | 650,000 | ||||||
Repayment of trust preferred issuance | 0 | (9,374 | ) | |||||
Distribution of treasury stock for deferred compensation plan | 1 | 1 | ||||||
Changes in: | ||||||||
Deposits | 101,255 | 261,529 | ||||||
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings | (21,361 | ) | (148,079 | ) | ||||
NET CASH PROVIDED BY ( FINANCING ACTIVITIESUSED IN ) | 151,647 | (38,015 | ) | |||||
Decrease in cash and cash equivalents | (44,242 | ) | (411,481 | ) | ||||
Cash and cash equivalents at beginning of year | 1,020,396 | 1,666,167 | ||||||
Cash and cash equivalents at end of period | $ | 976,154 | $ | 1,254,686 | ||||
Supplemental information | ||||||||
Noncash investing activities: | ||||||||
Transfers of loans to OREO | $ | 9,386 | $ | 1,809 | ||||
Transfer of held to maturity debt securities to available for sale debt securities | 11,544 | 0 |
issued as part of a simplification initiative which will expand the scope of ASC Topic 718 to include share-based payment transactions for acquiring goods and services from
statements and disclosures. “FinancialLosses.” ASUNo. 2016-13Losses” which changes the impairment model for most financial assets and certain other instruments that aren’tare not measured at fair value through net income. The standard will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost and require entities to record allowances for available for sale 2016-13for United on the same date as ASU No.United has completed an initial data gap assessment and loan segmentation procedures, and is currently evaluating the various forecasting and modeling assumptions that will be used to estimate the initial current expected credit loss allowance.To this point, United has engaged a third-party service provider to assist with the implementation of the new accounting standard. ManagementIn addition, United has selected loss estimation methodologies for its allowance for credit losses, evaluated and addressed data gaps within the model, performed testing on the chosen methodologies and determined a qualitative adjustment methodology that aligns with the requirements of the new standard. Implementation, testing and validation is currently evaluatingin process surrounding United’s reasonable methodologies and supportable forecast period, model assumptions and subsequent reversion period to historical loss rates. Progress continues regarding the possibledocumentation of the new standard and internal controls as well as changes to financial statement disclosures. United will address validation findings and perform parallel runs when appropriate to evaluate the impact this standard maythat the adoption of ASUCompany’s financial condition or results of operations.
September 30, 2019 | ||||||||||||||||||||
Gross | Gross | Estimated | Cumulative | |||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | OTTI in | ||||||||||||||||
Cost | Gains | Losses | Value | AOCI (1) | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 63,444 | $ | 591 | $ | 1 | $ | 64,034 | $ | 0 | ||||||||||
State and political subdivisions | 234,552 | 4,588 | 625 | 238,515 | 0 | |||||||||||||||
Residential mortgage-backed securities | ||||||||||||||||||||
Agency | 853,521 | 14,493 | 733 | 867,281 | 0 | |||||||||||||||
Non-agency | 3,533 | 462 | 0 | 3,995 | 86 | |||||||||||||||
Commercial mortgage-backed securities | ||||||||||||||||||||
Agency | 611,038 | 11,751 | 1,137 | 621,652 | 0 | |||||||||||||||
Asset-backed securities | 284,593 | 0 | 4,886 | 279,707 | 0 | |||||||||||||||
Trust preferred collateralized debt obligations | 6,130 | 0 | 1,061 | 5,069 | 661 | |||||||||||||||
Single issue trust preferred securities | 18,188 | 172 | 1,816 | 16,544 | 0 | |||||||||||||||
Other corporate securities | 350,850 | 4,485 | 35 | 355,300 | 0 | |||||||||||||||
Total | $ | 2,425,849 | $ | 36,542 | $ | 10,294 | $ | 2,452,097 | $ | 747 | ||||||||||
December 31, 2018 | ||||||||||||||||||||
Gross | Gross | Estimated | Cumulative | |||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | OTTI in | ||||||||||||||||
Cost | Gains | Losses | Value | AOCI (1) | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 86,285 | $ | 35 | $ | 430 | $ | 85,890 | $ | 0 | ||||||||||
State and political subdivisions | 212,670 | 439 | 4,121 | 208,988 | 0 | |||||||||||||||
Residential mortgage-backed securities | ||||||||||||||||||||
Agency | 1,047,345 | 3,235 | 14,930 | 1,035,650 | 0 | |||||||||||||||
Non-agency | 3,927 | 332 | 0 | 4,259 | 86 | |||||||||||||||
Commercial mortgage-backed securities | ||||||||||||||||||||
Agency | 560,634 | 996 | 7,030 | 554,600 | 0 | |||||||||||||||
Asset-backed securities | 272,459 | 450 | 939 | 271,970 | 0 | |||||||||||||||
Trust preferred collateralized debt obligations | 6,176 | 91 | 350 | 5,917 | 2,586 | |||||||||||||||
Single issue trust preferred securities | 8,754 | 169 | 561 | 8,362 | 0 | |||||||||||||||
Other corporate securities | 162,634 | 118 | 1,349 | 161,403 | 0 | |||||||||||||||
Total | $ | 2,360,884 | $ | 5,865 | $ | 29,710 | $ | 2,337,039 | $ | 2,672 | ||||||||||
March 31, 2019 | ||||||||||||||||||||
Gross | Gross | Estimated | Cumulative | |||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | OTTI in | ||||||||||||||||
Cost | Gains | Losses | Value | AOCI (1) | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 73,348 | $ | 281 | $ | 85 | $ | 73,544 | $ | 0 | ||||||||||
State and political subdivisions | 194,595 | 1,802 | 1,585 | 194,812 | 0 | |||||||||||||||
Residential mortgage-backed securities | ||||||||||||||||||||
Agency | 971,182 | 5,787 | 7,453 | 969,516 | 0 | |||||||||||||||
Non-agency | 3,782 | 325 | 0 | 4,107 | 86 | |||||||||||||||
Commercial mortgage-backed securities | ||||||||||||||||||||
Agency | 579,896 | 3,200 | 2,758 | 580,338 | 0 | |||||||||||||||
Asset-backed securities | 272,473 | 25 | 1,821 | 270,677 | 0 | |||||||||||||||
Trust preferred collateralized debt obligations | 6,176 | 91 | 250 | 6,017 | 2,586 | |||||||||||||||
Single issue trust preferred securities | 18,173 | 174 | 1,506 | 16,841 | 0 | |||||||||||||||
Other corporate securities | 266,385 | 1,920 | 102 | 268,203 | 0 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 2,386,010 | $ | 13,605 | $ | 15,560 | $ | 2,384,055 | $ | 2,672 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
December 31, 2018 | ||||||||||||||||||||
Gross | Gross | Estimated | Cumulative | |||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | OTTI in | ||||||||||||||||
Cost | Gains | Losses | Value | AOCI (1) | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 86,285 | $ | 35 | $ | 430 | $ | 85,890 | $ | 0 | ||||||||||
State and political subdivisions | 212,670 | 439 | 4,121 | 208,988 | 0 | |||||||||||||||
Residential mortgage-backed securities | ||||||||||||||||||||
Agency | 1,047,345 | 3,235 | 14,930 | 1,035,650 | 0 | |||||||||||||||
Non-agency | 3,927 | 332 | 0 | 4,259 | 86 | |||||||||||||||
Commercial mortgage-backed securities | ||||||||||||||||||||
Agency | 560,634 | 996 | 7,030 | 554,600 | 0 | |||||||||||||||
Asset-backed securities | 272,459 | 450 | 939 | 271,970 | 0 | |||||||||||||||
Trust preferred collateralized debt obligations | 6,176 | 91 | 350 | 5,917 | 2,586 | |||||||||||||||
Single issue trust preferred securities | 8,754 | 169 | 561 | 8,362 | 0 | |||||||||||||||
Other corporate securities | 162,634 | 118 | 1,349 | 161,403 | 0 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 2,360,884 | $ | 5,865 | $ | 29,710 | $ | 2,337,039 | $ | 2,672 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) |
|
Less than 12 months | 12 months or longer | |||||||||||||||
Fair | Unrealized | Fair | Unrealized | |||||||||||||
Value | Losses | Value | Losses | |||||||||||||
September 30, 2019 | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 1,420 | $ | 1 | $ | 0 | $ | 0 | ||||||||
State and political subdivisions | 62,394 | 614 | 2,946 | 11 | ||||||||||||
Residential mortgage-backed securities | ||||||||||||||||
Agency | 30,433 | 101 | 82,977 | 632 | ||||||||||||
Non-agency | 0 | 0 | 0 | 0 | ||||||||||||
Commercial mortgage-backed securities | ||||||||||||||||
Agency | 145,382 | 962 | 54,441 | 175 | ||||||||||||
Asset-backed securities | 243,909 | 4,084 | 35,798 | 802 | ||||||||||||
Trust preferred collateralized debt obligations | 2,969 | 661 | 2,100 | 400 | ||||||||||||
Single issue trust preferred securities | 0 | 0 | 13,332 | 1,816 | ||||||||||||
Other corporate securities | 8,978 | 35 | 0 | 0 | ||||||||||||
Total | $ | 495,485 | $ | 6,458 | $ | 191,594 | $ | 3,836 | ||||||||
Less than 12 months | 12 months or longer | |||||||||||||||
Fair | Unrealized | Fair | Unrealized | |||||||||||||
Value | Losses | Value | Losses | |||||||||||||
December 31, 2018 | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 66,072 | $ | 250 | $ | 7,374 | $ | 180 | ||||||||
State and political subdivisions | 53,421 | 544 | 94,337 | 3,577 | ||||||||||||
Residential mortgage-backed securities | ||||||||||||||||
Agency | 195,009 | 1,597 | 508,041 | 13,333 | ||||||||||||
Non-agency | 0 | 0 | 0 | 0 | ||||||||||||
Commercial mortgage-backed securities | ||||||||||||||||
Agency | 107,443 | 1,124 | 294,129 | 5,906 | ||||||||||||
Asset-backed securities | 151,427 | 939 | 0 | 0 | ||||||||||||
Trust preferred collateralized debt obligations | 0 | 0 | 2,150 | 350 | ||||||||||||
Single issue trust preferred securities | 0 | 0 | 5,163 | 561 | ||||||||||||
Other corporate securities | 129,709 | 1,233 | 6,879 | 116 | ||||||||||||
Total | $ | 703,081 | $ | 5,687 | $ | 918,073 | $ | 24,023 | ||||||||
Less than 12 months | 12 months or longer | |||||||||||||||
Fair | Unrealized | Fair | Unrealized | |||||||||||||
Value | Losses | Value | Losses | |||||||||||||
March 31, 2019 | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 2,486 | $ | 1 | $ | 11,304 | $ | 84 | ||||||||
State and political subdivisions | 611 | 1 | 82,395 | 1,584 | ||||||||||||
Residential mortgage-backed securities | ||||||||||||||||
Agency | 16,753 | 22 | 564,012 | 7,431 | ||||||||||||
Non-agency | 0 | 0 | 0 | 0 | ||||||||||||
Commercial mortgage-backed securities | ||||||||||||||||
Agency | 44,978 | 51 | 317,211 | 2,707 | ||||||||||||
Asset-backed securities | 256,733 | 1,763 | 7,480 | 58 | ||||||||||||
Trust preferred collateralized debt obligations | 0 | 0 | 2,250 | 250 | ||||||||||||
Single issue trust preferred securities | 0 | 0 | 13,634 | 1,506 | ||||||||||||
Other corporate securities | 23,404 | 68 | 11,949 | 34 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 344,965 | $ | 1,906 | $ | 1,010,235 | $ | 13,654 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Less than 12 months | 12 months or longer | |||||||||||||||
Fair | Unrealized | Fair | Unrealized | |||||||||||||
Value | Losses | Value | Losses | |||||||||||||
December 31, 2018 | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 66,072 | $ | 250 | $ | 7,374 | $ | 180 | ||||||||
State and political subdivisions | 53,421 | 544 | 94,337 | 3,577 | ||||||||||||
Residential mortgage-backed securities | ||||||||||||||||
Agency | 195,009 | 1,597 | 508,041 | 13,333 | ||||||||||||
Non-agency | 0 | 0 | 0 | 0 | ||||||||||||
Commercial mortgage-backed securities | ||||||||||||||||
Agency | 107,443 | 1,124 | 294,129 | 5,906 | ||||||||||||
Asset-backed securities | 151,427 | 939 | 0 | 0 | ||||||||||||
Trust preferred collateralized debt obligations | 0 | 0 | 2,150 | 350 | ||||||||||||
Single issue trust preferred securities | 0 | 0 | 5,163 | 561 | ||||||||||||
Other corporate securities | 129,709 | 1,233 | 6,879 | 116 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 703,081 | $ | 5,687 | $ | 918,073 | $ | 24,023 | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended March 31 | ||||||||
2019 | 2018 | |||||||
Proceeds from sales and calls | $ | 196,331 | $ | 99,703 | ||||
Gross realized gains | 15 | 1,163 | ||||||
Gross realized losses | 364 | 1,312 |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Proceeds from sales and calls | $ | 188,911 | $ | 109,093 | $ | 573,674 | $ | 283,953 | ||||||||
Gross realized gains | 412 | 93 | 1,166 | 1,314 | ||||||||||||
Gross realized losses | 346 | 207 | 1,318 | 1,604 |
The single issue trust preferred securities
was $9.
Three Months Ended March 31 | ||||||||
2019 | 2018 | |||||||
Balance of cumulative credit losses at beginning of period | $ | 3,138 | $ | 18,060 | ||||
Additions for credit losses recognized in earnings during the period: | ||||||||
Additional credit losses on securities for which OTTI was previously recognized | 0 | 0 | ||||||
Reductions for securities sold or paid off during the period | 0 | (14,861 | ) | |||||
|
|
|
| |||||
Balance of cumulative credit losses at end of period | $ | 3,138 | $ | 3,199 | ||||
|
|
|
|
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Balance of cumulative credit losses at beginning of period | $ | 3,192 | $ | 3,199 | $ | 3,138 | $ | 18,060 | ||||||||
Additional credit losses on securities for which OTTI was previously recognized | 9 | 0 | 63 | 0 | ||||||||||||
Reductions for securities sold or paid off during the period | 0 | 0 | 0 | (14,861 | ) | |||||||||||
Balance of cumulative credit losses at end of period | $ | 3,201 | $ | 3,199 | $ | 3,201 | $ | 3,199 | ||||||||
March 31, 2019 | December 31, 2018 | |||||||||||||||
Estimated | Estimated | |||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||
Cost | Value | Cost | Value | |||||||||||||
Due in one year or less | $ | 112,605 | $ | 112,304 | $ | 77,534 | $ | 77,266 | ||||||||
Due after one year through five years | 582,295 | 583,701 | 518,975 | 514,734 | ||||||||||||
Due after five years through ten years | 513,457 | 512,919 | 483,567 | 477,135 | ||||||||||||
Due after ten years | 1,177,653 | 1,175,131 | 1,280,808 | 1,267,904 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 2,386,010 | $ | 2,384,055 | $ | 2,360,884 | $ | 2,337,039 | ||||||||
|
|
|
|
|
|
|
|
September 30, 2019 | December 31, 2018 | |||||||||||||||
Estimated | Estimated | |||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||
Cost | Value | Cost | Value | |||||||||||||
Due in one year or less | $ | 110,865 | $ | 111,001 | $ | 77,534 | $ | 77,266 | ||||||||
Due after one year through five years | 568,839 | 576,687 | 518,975 | 514,734 | ||||||||||||
Due after five years through ten years | 549,442 | 558,540 | 483,567 | 477,135 | ||||||||||||
Due after ten years | 1,196,703 | 1,205,869 | 1,280,808 | 1,267,904 | ||||||||||||
Total | $ | 2,425,849 | $ | 2,452,097 | $ | 2,360,884 | $ | 2,337,039 | ||||||||
March 31, 2019 | ||||||||||||||||
Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 5,045 | $ | 58 | $ | 0 | $ | 5,103 | ||||||||
State and political subdivisions | 3,426 | 0 | 0 | 3,426 | ||||||||||||
Residential mortgage-backed securities | ||||||||||||||||
Agency | 0 | 0 | 0 | 0 | ||||||||||||
Single issue trust preferred securities | 0 | 0 | 0 | 0 | ||||||||||||
Other corporate securities | 20 | 0 | 0 | 20 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 8,491 | $ | 58 | $ | 0 | $ | 8,549 | ||||||||
|
|
|
|
|
|
|
| |||||||||
December 31, 2018 | ||||||||||||||||
Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 5,074 | $ | 90 | $ | 0 | $ | 5,164 | ||||||||
State and political subdivisions | 5,473 | 7 | 1 | 5,479 | ||||||||||||
Residential mortgage-backed securities | ||||||||||||||||
Agency | 20 | 2 | 0 | 22 | ||||||||||||
Single issue trust preferred securities | 9,412 | 0 | 1,442 | 7,970 | ||||||||||||
Other corporate securities | 20 | 0 | 0 | 20 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 19,999 | $ | 99 | $ | 1,443 | $ | 18,655 | ||||||||
|
|
|
|
|
|
|
|
Even though the market value of the held to maturity investment portfolio is less than its cost, the unrealized loss has no impact on the net worth or regulatory capital requirements of United.
September 30, 2019 | ||||||||||||||||
Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 25 | $ | 0 | $ | 0 | $ | 25 | ||||||||
State and political subdivisions | 1,426 | 1 | 0 | 1,427 | ||||||||||||
Residential mortgage-backed securities | ||||||||||||||||
Agency | 0 | 0 | 0 | 0 | ||||||||||||
Single issue trust preferred securities | 0 | 0 | 0 | 0 | ||||||||||||
Other corporate securities | 20 | 0 | 0 | 20 | ||||||||||||
Total | $ | 1,471 | $ | 1 | $ | 0 | $ | 1,472 | ||||||||
December 31, 2018 | ||||||||||||||||
Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 5,074 | $ | 90 | $ | 0 | $ | 5,164 | ||||||||
State and political subdivisions | 5,473 | 7 | 1 | 5,479 | ||||||||||||
Residential mortgage-backed securities | ||||||||||||||||
Agency | 20 | 2 | 0 | 22 | ||||||||||||
Single issue trust preferred securities | 9,412 | 0 | 1,442 | 7,970 | ||||||||||||
Other corporate securities | 20 | 0 | 0 | 20 | ||||||||||||
Total | $ | 19,999 | $ | 99 | $ | 1,443 | $ | 18,655 | ||||||||
March 31, 2019 | December 31, 2018 | |||||||||||||||
Estimated | Estimated | |||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||
Cost | Value | Cost | Value | |||||||||||||
Due in one year or less | $ | 7,255 | $ | 7,312 | $ | 7,913 | $ | 8,005 | ||||||||
Due after one year through five years | 216 | 217 | 1,059 | 1,061 | ||||||||||||
Due after five years through ten years | 0 | 0 | 8,030 | 7,134 | ||||||||||||
Due after ten years | 1,020 | 1,020 | 2,997 | 2,455 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 8,491 | $ | 8,549 | $ | 19,999 | $ | 18,655 | ||||||||
|
|
|
|
|
|
|
|
September 30, 2019 | December 31, 2018 | |||||||||||||||
Estimated | Estimated | |||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||
Cost | Value | Cost | Value | |||||||||||||
Due in one year or less | $ | 235 | $ | 235 | $ | 7,913 | $ | 8,005 | ||||||||
Due after one year through five years | 216 | 217 | 1,059 | 1,061 | ||||||||||||
Due after five years through ten years | 0 | 0 | 8,030 | 7,134 | ||||||||||||
Due after ten years | 1,020 | 1,020 | 2,997 | 2,455 | ||||||||||||
Total | $ | 1,471 | $ | 1,472 | $ | 19,999 | $ | 18,655 | ||||||||
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||
Net gains (losses) recognized during the period | $ | 189 | $ | (36 | ) | |||
Net gains (losses) recognized during the period on equity securities sold | 132 | 2 | ||||||
Unrealized gains recognized during the period on equity securities still held at period end | 58 | 39 | ||||||
Unrealized losses recognized during the period on equity securities still held at period end | 1 | 77 |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net gains (losses) recognized during the period | $ | 59 | $ | (38 | ) | $ | 302 | $ | (102 | ) | ||||||
Net gains (losses) recognized during the period on equity securities sold | (1 | ) | (2 | ) | 133 | (4 | ) | |||||||||
Unrealized gains recognized during the period on equity securities still held at period end | 60 | 0 | 181 | 50 | ||||||||||||
Unrealized losses recognized during the period on equity securities still held at period end | 0 | (36 | ) | (12 | ) | (148 | ) |
March 31, 2019 | December 31, 2018 | |||||||
Commercial, financial and agricultural: | ||||||||
Owner-occupied commercial real estate | $ | 1,275,340 | $ | 1,291,790 | ||||
Nonowner-occupied commercial real estate | 4,266,613 | 4,303,613 | ||||||
Other commercial loans | 1,996,482 | 1,957,641 | ||||||
|
|
|
| |||||
Total commercial, financial & agricultural | 7,538,435 | 7,553,044 | ||||||
Residential real estate | 3,550,037 | 3,501,393 | ||||||
Construction & land development | 1,487,453 | 1,410,468 | ||||||
Consumer: | ||||||||
Bankcard | 9,247 | 10,203 | ||||||
Other consumer | 993,046 | 954,424 | ||||||
|
|
|
| |||||
Total gross loans | $ | 13,578,218 | $ | 13,429,532 | ||||
|
|
|
|
September 30, 2019 | December 31, 2018 | |||||||
Commercial, financial and agricultural: | ||||||||
Owner-occupied commercial real estate | $ | 1,221,647 | $ | 1,291,790 | ||||
Nonowner-occupied commercial real estate | 4,241,682 | 4,303,613 | ||||||
Other commercial loans | 2,107,865 | 1,957,641 | ||||||
Total commercial, financial & agricultural | 7,571,194 | 7,553,044 | ||||||
Residential real estate | 3,644,568 | 3,501,393 | ||||||
Construction & land development | 1,300,881 | 1,410,468 | ||||||
Consumer: | ||||||||
Bankcard | 9,532 | 10,203 | ||||||
Other consumer | 1,111,063 | 954,424 | ||||||
Total gross loans | $ | 13,637,238 | $ | 13,429,532 | ||||
Accretable yield at the beginning of the period | $ | 26,289 | ||
Accretion (including cash recoveries) | (3,052 | ) | ||
Additions | 0 | |||
Net reclassifications to accretable fromnon-accretable | 4,223 | |||
Disposals (including maturities, foreclosures, and charge-offs) | (1,471 | ) | ||
|
| |||
Accretable yield at the end of the period | $ | 25,989 | ||
|
|
Accretable yield at the beginning of the period | $ | 26,289 | ||
Accretion (including cash recoveries) | (8,303 | ) | ||
Additions | 0 | |||
Net reclassifications to accretable from non-accretable | 8,746 | |||
Disposals (including maturities, foreclosures, and charge-offs) | (4,649 | ) | ||
Accretable yield at the end of the period | $ | 22,083 | ||
Troubled Debt Restructurings | ||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
September 30, 2019 | September 30, 2018 | |||||||||||||||||||||||
Number of Contracts | Pre- Modification Outstanding Recorded Investment | Post- Modification Outstanding Recorded Investment | Number of Contracts | Pre- Modification Outstanding Recorded Investment | Post- Modification Outstanding Recorded Investment | |||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | 1 | $ | 1,030 | $ | 1,030 | 0 | $ | 0 | $ | 0 | ||||||||||||||
Nonowner-occupied | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other commercial | 1 | 5,137 | 5,076 | 5 | 7,420 | 7,364 | ||||||||||||||||||
Residential real estate | 0 | 0 | 0 | 1 | 272 | 272 | ||||||||||||||||||
Construction & land development | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other consumer | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total | 2 | $ | 6,167 | $ | 6,106 | 6 | $ | 7,692 | $ | 7,636 | ||||||||||||||
Troubled Debt Restructurings For the Three Months Ended | ||||||||||||
March 31, 2019 | ||||||||||||
Number of Contracts | Pre- Modification Outstanding Recorded Investment | Post- Modification Outstanding Recorded Investment | ||||||||||
Commercial real estate: | ||||||||||||
Owner-occupied | 0 | $ | 0 | $ | 0 | |||||||
Nonowner-occupied | 0 | 0 | 0 | |||||||||
Other commercial | 1 | 265 | 265 | |||||||||
Residential real estate | 1 | 413 | 409 | |||||||||
Construction & land development | 0 | 0 | 0 | |||||||||
Consumer: | ||||||||||||
Bankcard | 0 | 0 | 0 | |||||||||
Other consumer | 0 | 0 | 0 | |||||||||
|
|
|
|
|
| |||||||
Total | 2 | $ | 678 | $ | 674 | |||||||
|
|
|
|
|
|
loans:
Troubled Debt Restructurings | ||||||||||||||||||||||||
For the Nine Months Ended | ||||||||||||||||||||||||
September 30, 2019 | September 30, 2018 | |||||||||||||||||||||||
Number of Contracts | Pre- Modification Outstanding Recorded Investment | Post- Modification Outstanding Recorded Investment | Number of Contracts | Pre- Modification Outstanding Recorded Investment | Post- Modification Outstanding Recorded Investment | |||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | 2 | $ | 1,179 | $ | 1,179 | 0 | $ | 0 | $ | 0 | ||||||||||||||
Nonowner-occupied | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other commercial | 3 | 5,962 | 5,849 | 9 | 16,992 | 16,890 | ||||||||||||||||||
Residential real estate | 3 | 2,258 | 2,022 | 3 | 7,225 | 7,225 | ||||||||||||||||||
Construction & land development | 3 | 2,266 | 2,214 | 0 | 0 | 0 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other consumer | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total | 11 | $ | 11,665 | $ | 11,264 | 12 | $ | 24,217 | $ | 24,115 | ||||||||||||||
No loans
Three Months EndedSeptember 30, 2019 | Nine Months Ended September 30, 2019 | |||||||||||||||
Number of Contracts | Recorded Investment | Number of Contracts | Recorded Investment | |||||||||||||
Troubled Debt Restructurings | ||||||||||||||||
Commercial real estate: | ||||||||||||||||
Owner-occupied | 0 | $ | 0 | 0 | $ | 0 | ||||||||||
Nonowner-occupied | 0 | 0 | 0 | 0 | ||||||||||||
Other commercial | 1 | 534 | 2 | 1,477 | ||||||||||||
Residential real estate | 0 | 0 | 0 | 0 | ||||||||||||
Construction & land development | 0 | 0 | 0 | 0 | ||||||||||||
Consumer: | ||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | ||||||||||||
Other consumer | 0 | 0 | 0 | 0 | ||||||||||||
Total | 1 | $ | 534 | 2 | $ | 1,477 | ||||||||||
Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | |||||||||||||||
Number of Contracts | Recorded Investment | Number of Contracts | Recorded Investment | |||||||||||||
Troubled Debt Restructurings | ||||||||||||||||
Commercial real estate: | ||||||||||||||||
Owner-occupied | 0 | $ | 0 | 0 | $ | 0 | ||||||||||
Nonowner-occupied | 0 | 0 | 0 | 0 | ||||||||||||
Other commercial | 1 | 622 | 1 | 622 | ||||||||||||
Residential real estate | 0 | 0 | 0 | 0 | ||||||||||||
Construction & land development | 0 | 0 | 0 | 0 | ||||||||||||
Consumer: | ||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | ||||||||||||
Other consumer | 0 | 0 | 0 | 0 | ||||||||||||
Total | 1 | $ | 622 | 1 | $ | 622 | ||||||||||
30-89 Days Past Due | 90 Days or more Past Due | Total Past Due | Current & Other (1) | Total Financing Receivables | Recorded Investment >90 Days & Accruing | |||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | $ | 8,246 | $ | 16,477 | $ | 24,723 | $ | 1,250,617 | $ | 1,275,340 | $ | 0 | ||||||||||||
Nonowner-occupied | 16,642 | 20,073 | 36,715 | 4,229,898 | 4,266,613 | 3,433 | ||||||||||||||||||
Other commercial | 5,292 | 44,467 | 49,759 | 1,946,723 | 1,996,482 | 1,238 | ||||||||||||||||||
Residential real estate | 38,179 | 27,389 | 65,568 | 3,484,469 | 3,550,037 | 9,735 | ||||||||||||||||||
Construction & land development | 5,986 | 17,373 | 23,359 | 1,464,094 | 1,487,453 | 861 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Bankcard | 377 | 118 | 495 | 8,752 | 9,247 | 118 | ||||||||||||||||||
Other consumer | 6,987 | 801 | 7,788 | 985,258 | 993,046 | 452 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 81,709 | $ | 126,698 | $ | 208,407 | $ | 13,369,811 | $ | 13,578,218 | $ | 15,837 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
30-89 Days Past Due | 90 Days or more Past Due | Total Past Due | Current & Other (1) | Total Financing Receivables | Recorded Investment >90 Days Accruing | |||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | $ | 17,635 | $ | 13,463 | $ | 31,098 | $ | 1,190,549 | $ | 1,221,647 | $ | 1,105 | ||||||||||||
Nonowner-occupied | 14,171 | 19,342 | 33,513 | 4,208,169 | 4,241,682 | 471 | ||||||||||||||||||
Other commercial | 11,446 | 53,250 | 64,696 | 2,043,169 | 2,107,865 | 533 | ||||||||||||||||||
Residential real estate | 33,863 | 27,155 | 61,018 | 3,583,550 | 3,644,568 | 6,248 | ||||||||||||||||||
Construction & land development | 5,299 | 16,024 | 21,323 | 1,279,558 | 1,300,881 | 478 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Bankcard | 303 | 155 | 458 | 9,074 | 9,532 | 155 | ||||||||||||||||||
Other consumer | 8,959 | 1,092 | 10,051 | 1,101,012 | 1,111,063 | 850 | ||||||||||||||||||
Total | $ | 91,676 | $ | 130,481 | $ | 222,157 | $ | 13,415,081 | $ | 13,637,238 | $ | 9,840 | ||||||||||||
(1) | Other includes loans with a recorded investment of |
30-89 Days Past Due | 90 Days or more Past Due | Total Past Due | Current & Other (1) | Total Financing Receivables | Recorded Investment >90 Days & Accruing | |||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | $ | 9,224 | $ | 17,742 | $ | 26,966 | $ | 1,264,824 | $ | 1,291,790 | $ | 629 | ||||||||||||
Nonowner-occupied | 16,108 | 18,092 | 34,200 | 4,269,413 | 4,303,613 | 1,171 | ||||||||||||||||||
Other commercial | 13,556 | 46,040 | 59,596 | 1,898,045 | 1,957,641 | 2,850 | ||||||||||||||||||
Residential real estate | 37,111 | 30,278 | 67,389 | 3,434,004 | 3,501,393 | 9,141 | ||||||||||||||||||
Construction & land development | 8,462 | 19,412 | 27,874 | 1,382,594 | 1,410,468 | 680 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Bankcard | 657 | 177 | 834 | 9,369 | 10,203 | 177 | ||||||||||||||||||
Other consumer | 8,909 | 1,243 | 10,152 | 944,272 | 954,424 | 893 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 94,027 | $ | 132,984 | $ | 227,011 | $ | 13,202,521 | $ | 13,429,532 | $ | 15,541 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
30-89 Days Past Due | 90 Days or more Past Due | Total Past Due | Current & Other (1) | Total Financing Receivables | Recorded Investment >90 Days Accruing | |||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | $ | 9,224 | $ | 17,742 | $ | 26,966 | $ | 1,264,824 | $ | 1,291,790 | $ | 629 | ||||||||||||
Nonowner-occupied | 16,108 | 18,092 | 34,200 | 4,269,413 | 4,303,613 | 1,171 | ||||||||||||||||||
Other commercial | 13,556 | 46,040 | 59,596 | 1,898,045 | 1,957,641 | 2,850 | ||||||||||||||||||
Residential real estate | 37,111 | 30,278 | 67,389 | 3,434,004 | 3,501,393 | 9,141 | ||||||||||||||||||
Construction & land development | 8,462 | 19,412 | 27,874 | 1,382,594 | 1,410,468 | 680 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Bankcard | 657 | 177 | 834 | 9,369 | 10,203 | 177 | ||||||||||||||||||
Other consumer | 8,909 | 1,243 | 10,152 | 944,272 | 954,424 | 893 | ||||||||||||||||||
Total | $ | 94,027 | $ | 132,984 | $ | 227,011 | $ | 13,202,521 | $ | 13,429,532 | $ | 15,541 | ||||||||||||
(1) | Other includes loans with a recorded investment of $149,737 acquired and accounted for under ASC Topic |
March 31, 2019 | December 31, 2018 | |||||||
Commercial real estate: | ||||||||
Owner-occupied | $ | 16,477 | $ | 17,113 | ||||
Nonowner-occupied | 16,640 | 16,921 | ||||||
Other commercial | 43,229 | 43,190 | ||||||
Residential real estate | 17,654 | 21,137 | ||||||
Construction & land development | 16,512 | 18,732 | ||||||
Consumer: | ||||||||
Bankcard | 0 | 0 | ||||||
Other consumer | 349 | 350 | ||||||
|
|
|
| |||||
Total | $ | 110,861 | $ | 117,443 | ||||
|
|
|
|
September 30, 2019 | December 31, 2018 | |||||||
Commercial real estate: | ||||||||
Owner-occupied | $ | 12,358 | $ | 17,113 | ||||
Nonowner-occupied | 18,871 | 16,921 | ||||||
Other commercial | 52,717 | 43,190 | ||||||
Residential real estate | 20,907 | 21,137 | ||||||
Construction & land development | 15,546 | 18,732 | ||||||
Consumer: | ||||||||
Bankcard | 0 | 0 | ||||||
Other consumer | 242 | 350 | ||||||
Total | $ | 120,641 | $ | 117,443 | ||||
supervision by management. Substandard loans are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity, or marginal capitalization. Repayment may depend on collateral or other credit risk mitigants. For some substandard loans, the likelihood of full collection of interest and principal may be in doubt and thus, placed on nonaccrual. For loans with a consumer credit exposure, loans that are 90 days or more past due or that have been placed on nonaccrual are considered substandard.
As of March 31, 2019 | ||||||||||||||||
Commercial Real Estate | Other Commercial | Construction & Land Development | ||||||||||||||
Owner- occupied | Nonowner- occupied | |||||||||||||||
Grade: | ||||||||||||||||
Pass | $ | 1,186,841 | $ | 4,143,459 | $ | 1,899,853 | $ | 1,408,268 | ||||||||
Special mention | 35,025 | 37,068 | 18,688 | 6,350 | ||||||||||||
Substandard | 53,474 | 86,086 | 77,130 | 72,835 | ||||||||||||
Doubtful | 0 | 0 | 811 | 0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,275,340 | $ | 4,266,613 | $ | 1,996,482 | $ | 1,487,453 | ||||||||
|
|
|
|
|
|
|
| |||||||||
As of December 31, 2018 | ||||||||||||||||
Commercial Real Estate | Other Commercial | Construction & Land Development | ||||||||||||||
Owner- occupied | Nonowner- occupied | |||||||||||||||
Grade: | ||||||||||||||||
Pass | $ | 1,201,387 | $ | 4,161,149 | $ | 1,858,821 | $ | 1,330,899 | ||||||||
Special mention | 34,487 | 46,442 | 14,424 | 28,629 | ||||||||||||
Substandard | 55,916 | 96,022 | 81,946 | 50,940 | ||||||||||||
Doubtful | 0 | 0 | 2,450 | 0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,291,790 | $ | 4,303,613 | $ | 1,957,641 | $ | 1,410,468 | ||||||||
|
|
|
|
|
|
|
|
As of September 30, 2019 | ||||||||||||||||
Commercial Real Estate | Other Commercial | Construction & Land Development | ||||||||||||||
Owner- occupied | Nonowner- occupied | |||||||||||||||
Grade: | ||||||||||||||||
Pass | $ | 1,147,536 | $ | 4,141,992 | $ | 1,964,260 | $ | 1,221,350 | ||||||||
Special mention | 20,588 | 27,493 | 62,015 | 10,105 | ||||||||||||
Substandard | 53,164 | 72,197 | 81,320 | 69,426 | ||||||||||||
Doubtful | 359 | 0 | 270 | 0 | ||||||||||||
Total | $ | 1,221,647 | $ | 4,241,682 | $ | 2,107,865 | $ | 1,300,881 | ||||||||
As of December 31, 2018 | ||||||||||||||||
Commercial Real Estate | Other Commercial | Construction & Land Development | ||||||||||||||
Owner- occupied | Nonowner- occupied | |||||||||||||||
Grade: | ||||||||||||||||
Pass | $ | 1,201,387 | $ | 4,161,149 | $ | 1,858,821 | $ | 1,330,899 | ||||||||
Special mention | 34,487 | 46,442 | 14,424 | 28,629 | ||||||||||||
Substandard | 55,916 | 96,022 | 81,946 | 50,940 | ||||||||||||
Doubtful | 0 | 0 | 2,450 | 0 | ||||||||||||
Total | $ | 1,291,790 | $ | 4,303,613 | $ | 1,957,641 | $ | 1,410,468 | ||||||||
As of March 31, 2019 | ||||||||||||
Residential Real Estate | Bankcard | Other Consumer | ||||||||||
Grade: | ||||||||||||
Pass | $ | 3,492,494 | $ | 8,752 | $ | 985,222 | ||||||
Special mention | 12,234 | 377 | 6,993 | |||||||||
Substandard | 45,309 | 118 | 831 | |||||||||
Doubtful | 0 | 0 | 0 | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 3,550,037 | $ | 9,247 | $ | 993,046 | ||||||
|
|
|
|
|
| |||||||
As of December 31, 2018 | ||||||||||||
Residential Real Estate | Bankcard | Other Consumer | ||||||||||
Grade: | ||||||||||||
Pass | $ | 3,436,584 | $ | 9,369 | $ | 944,241 | ||||||
Special mention | 19,051 | 657 | 8,914 | |||||||||
Substandard | 45,758 | 177 | 1.269 | |||||||||
Doubtful | 0 | 0 | 0 | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 3,501,393 | $ | 10,203 | $ | 954,424 | ||||||
|
|
|
|
|
|
As of September 30, 2019 | ||||||||||||
Residential Real Estate | Bankcard | Other Consumer | ||||||||||
Grade: | ||||||||||||
Pass | $ | 3,596,942 | $ | 9,073 | $ | 1,100,971 | ||||||
Special mention | 9,776 | 304 | 8,962 | |||||||||
Substandard | 37,850 | 155 | 1,130 | |||||||||
Doubtful | 0 | 0 | 0 | |||||||||
Total | $ | 3,644,568 | $ | 9,532 | $ | 1,111,063 | ||||||
As of December 31, 2018 | ||||||||||||
Residential Real Estate | Bankcard | Other Consumer | ||||||||||
Grade: | ||||||||||||
Pass | $ | 3,436,584 | $ | 9,369 | $ | 944,241 | ||||||
Special mention | 19,051 | 657 | 8,914 | |||||||||
Substandard | 45,758 | 177 | 1,269 | |||||||||
Doubtful | 0 | 0 | 0 | |||||||||
Total | $ | 3,501,393 | $ | 10,203 | $ | 954,424 | ||||||
Impaired Loans | ||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | |||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | |||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Commercial real estate: | �� | |||||||||||||||||||||||
Owner-occupied | $ | 68,153 | $ | 69,637 | $ | 0 | $ | 63,633 | $ | 63,798 | $ | 0 | ||||||||||||
Nonowner-occupied | 86,515 | 86,574 | 0 | 98,845 | 98,904 | 0 | ||||||||||||||||||
Other commercial | 42,198 | 44,656 | 0 | 40,291 | 50,459 | 0 | ||||||||||||||||||
Residential real estate | 29,603 | 29,712 | 0 | 28,207 | 29,279 | 0 | ||||||||||||||||||
Construction & land development | 36,440 | 40,249 | 0 | 37,174 | 40,459 | 0 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other consumer | 27 | 27 | 0 | 27 | 27 | 0 | ||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | $ | 5,482 | $ | 5,482 | $ | 1,485 | $ | 10,004 | $ | 10,004 | $ | 2,542 | ||||||||||||
Nonowner-occupied | 14,050 | 14,050 | 2,571 | 15,720 | 15,720 | 2,715 | ||||||||||||||||||
Other commercial | 48,117 | 50,327 | 14,699 | 61,266 | 62,812 | 17,581 | ||||||||||||||||||
Residential real estate | 16,889 | 19,440 | 3,694 | 19,623 | 22,064 | 3,265 | ||||||||||||||||||
Construction & land development | 14,740 | 19,444 | 2,225 | 14,742 | 19,446 | 2,254 |
Impaired Loans | ||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | |||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | $ | 68,541 | $ | 70,625 | $ | 0 | $ | 63,633 | $ | 63,798 | $ | 0 | ||||||||||||
Nonowner-occupied | 45,039 | 45,232 | 0 | 98,845 | 98,904 | 0 | ||||||||||||||||||
Other commercial | 59,855 | 67,441 | 0 | 40,291 | 50,459 | 0 | ||||||||||||||||||
Residential real estate | 31,992 | 33,864 | 0 | 28,207 | 29,279 | 0 | ||||||||||||||||||
Construction & land development | 29,900 | 35,825 | 0 | 37,174 | 40,459 | 0 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other consumer | 31 | 31 | 0 | 27 | 27 | 0 | ||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | $ | 1,066 | $ | 1,066 | $ | 25 | $ | 10,004 | $ | 10,004 | $ | 2,542 | ||||||||||||
Nonowner-occupied | 13,515 | 13,623 | 1,900 | 15,720 | 15,720 | 2,715 | ||||||||||||||||||
Other commercial | 40,866 | 43,250 | 10,491 | 61,266 | 62,812 | 17,581 | ||||||||||||||||||
Residential real estate | 6,080 | 6,081 | 433 | 19,623 | 22,064 | 3,265 | ||||||||||||||||||
Construction & land development | 14,877 | 16,927 | 1,937 | 14,742 | 19,446 | 2,254 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other consumer | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total: | ||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | $ | 69,607 | $ | 71,691 | $ | 25 | $ | 73,637 | $ | 73,802 | $ | 2,542 | ||||||||||||
Nonowner-occupied | 58,554 | 58,855 | 1,900 | 114,565 | 114,624 | 2,715 | ||||||||||||||||||
Other commercial | 100,721 | 110,691 | 10,491 | 101,557 | 113,271 | 17,581 | ||||||||||||||||||
Residential real estate | 38,072 | 39,945 | 433 | 47,830 | 51,343 | 3,265 | ||||||||||||||||||
Construction & land development | 44,777 | 52,752 | 1,937 | 51,916 | 59,905 | 2,254 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other consumer | 31 | 31 | 0 | 27 | 27 | 0 |
Impaired Loans | ||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | |||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | |||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other consumer | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total: | ||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | $ | 73,635 | $ | 75,119 | $ | 1,485 | $ | 73,637 | $ | 73,802 | $ | 2,542 | ||||||||||||
Nonowner-occupied | 100,565 | 100,624 | 2,571 | 114,565 | 114,624 | 2,715 | ||||||||||||||||||
Other commercial | 90,315 | 94,983 | 14,699 | 101,557 | 113,271 | 17,581 | ||||||||||||||||||
Residential real estate | 46,492 | 49,152 | 3,694 | 47,830 | 51,343 | 3,265 | ||||||||||||||||||
Construction & land development | 51,180 | 59,693 | 2,225 | 51,916 | 59,905 | 2,254 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other consumer | 27 | 27 | 0 | 27 | 27 | 0 |
Impaired Loans | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
March 31, 2019 | March 31, 2018 | |||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||
With no related allowance recorded: | ||||||||||||||||
Commercial real estate: | ||||||||||||||||
Owner-occupied | $ | 65,893 | $ | 363 | $ | 76,947 | $ | 377 | ||||||||
Nonowner-occupied | 92,680 | 250 | 125,863 | 120 | ||||||||||||
Other commercial | 41,244 | 139 | 49,693 | 206 | ||||||||||||
Residential real estate | 28,905 | 182 | 25,437 | 83 | ||||||||||||
Construction & land development | 36,807 | 217 | 50,300 | 103 | ||||||||||||
Consumer: | ||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | ||||||||||||
Other consumer | 27 | 0 | 28 | 0 | ||||||||||||
With an allowance recorded: | ||||||||||||||||
Commercial real estate: | ||||||||||||||||
Owner-occupied | $ | 7,743 | $ | 6 | $ | 7,502 | $ | 25 | ||||||||
Nonowner-occupied | 14,885 | 91 | 8,170 | 59 | ||||||||||||
Other commercial | 54,692 | 153 | 54,297 | 19 | ||||||||||||
Residential real estate | 18,256 | 92 | 10,850 | 0 | ||||||||||||
Construction & land development | 14,741 | 20 | 1,699 | 20 | ||||||||||||
Consumer: | ||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | ||||||||||||
Other consumer | 0 | 0 | 0 | 0 | ||||||||||||
Total: | ||||||||||||||||
Commercial real estate: | ||||||||||||||||
Owner-occupied | $ | 73,636 | $ | 369 | $ | 84,449 | $ | 402 | ||||||||
Nonowner-occupied | 107,565 | 341 | 134,033 | 179 | ||||||||||||
Other commercial | 95,936 | 292 | 103,990 | 225 | ||||||||||||
Residential real estate | 47,161 | 274 | 36,287 | 83 | ||||||||||||
Construction & land development | 51,548 | 237 | 51,999 | 123 | ||||||||||||
Consumer: | ||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | ||||||||||||
Other consumer | 27 | 0 | 28 | 0 |
Impaired Loans | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
September 30, 2019 | September 30, 2018 | |||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||
With no related allowance recorded: | ||||||||||||||||
Commercial real estate: | ||||||||||||||||
Owner-occupied | $ | 70,245 | $ | 425 | $ | 65,625 | $ | 365 | ||||||||
Nonowner-occupied | 47,633 | 261 | 99,005 | 311 | ||||||||||||
Other commercial | 61,488 | 257 | 56,489 | 313 | ||||||||||||
Residential real estate | 33,482 | 146 | 28,753 | 144 | ||||||||||||
Construction & land development | 33,384 | 193 | 41,036 | 278 | ||||||||||||
Consumer: | ||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | ||||||||||||
Other consumer | 31 | 0 | 23 | 0 |
Impaired Loans | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
September 30, 2019 | September 30, 2018 | |||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||
With an allowance recorded: | ||||||||||||||||
Commercial real estate: | ||||||||||||||||
Owner-occupied | $ | 3,004 | $ | 0 | $ | 7,378 | $ | 6 | ||||||||
Nonowner-occupied | 11,943 | 63 | 12,465 | 189 | ||||||||||||
Other commercial | 38,016 | 11 | 47,563 | 305 | ||||||||||||
Residential real estate | 9,047 | 9 | 14,975 | 57 | ||||||||||||
Construction & land development | 14,481 | 32 | 9,408 | 20 | ||||||||||||
Consumer: | ||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | ||||||||||||
Other consumer | 0 | 0 | 0 | 0 | ||||||||||||
Total: | ||||||||||||||||
Commercial real estate: | ||||||||||||||||
Owner-occupied | $ | 73,249 | $ | 425 | $ | 73,003 | $ | 371 | ||||||||
Nonowner-occupied | 59,576 | 324 | 111,470 | 500 | ||||||||||||
Other commercial | 99,504 | 268 | 104,052 | 618 | ||||||||||||
Residential real estate | 42,529 | 155 | 43,728 | 201 | ||||||||||||
Construction & land development | 47,865 | 225 | 50,444 | 298 | ||||||||||||
Consumer: | ||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | ||||||||||||
Other consumer | 31 | 0 | 23 | 0 | ||||||||||||
Impaired Loans | ||||||||||||||||
For the Nine Months Ended | ||||||||||||||||
September 30, 2019 | September 30, 2018 | |||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||
With no related allowance recorded: | ||||||||||||||||
Commercial real estate: | ||||||||||||||||
Owner-occupied | $ | 69,547 | $ | 1,354 | $ | 69,009 | $ | 1,101 | ||||||||
Nonowner-occupied | 60,594 | 914 | 105,199 | 928 | ||||||||||||
Other commercial | 55,058 | 790 | 55,124 | 1,020 | ||||||||||||
Residential real estate | 32,189 | 479 | 27,210 | 501 | ||||||||||||
Construction & land development | 34,403 | 602 | 43,464 | 707 | ||||||||||||
Consumer: | ||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | ||||||||||||
Other consumer | 30 | 0 | 29 | 0 | ||||||||||||
With an allowance recorded: | ||||||||||||||||
Commercial real estate: | ||||||||||||||||
Owner-occupied | $ | 3,830 | $ | 0 | $ | 6,876 | $ | 18 | ||||||||
Nonowner-occupied | 12,645 | 192 | 11,158 | 251 | ||||||||||||
Other commercial | 41,383 | 139 | 47,736 | 380 | ||||||||||||
Residential real estate | 11,661 | 73 | 13,946 | 247 | ||||||||||||
Construction & land development | 14,567 | 87 | 6,944 | 60 | ||||||||||||
Consumer: | ||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | ||||||||||||
Other consumer | 0 | 0 | 0 | 0 | ||||||||||||
Total: | ||||||||||||||||
Commercial real estate: | ||||||||||||||||
Owner-occupied | $ | 73,377 | $ | 1,354 | $ | 75,885 | $ | 1,119 | ||||||||
Nonowner-occupied | 73,239 | 1,106 | 116,357 | 1,179 | ||||||||||||
Other commercial | 96,441 | 929 | 102,860 | 1,400 | ||||||||||||
Residential real estate | 43,850 | 552 | 41,156 | 748 | ||||||||||||
Construction & land development | 48,970 | 689 | 50,408 | 767 | ||||||||||||
Consumer: | ||||||||||||||||
Bankcard | 0 | 0 | 0 | 0 | ||||||||||||
Other consumer | 30 | 0 | 29 | 0 |
holding or disposing of the property are recorded in other expense in the period incurred. At March 31,September 30, 2019 and December 31, 2018, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process was $263$1,454 and $520, respectively.
recognized as a yield adjustment or as a loss accrual or a valuation allowance. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows are recognized as impairment. Valuation allowances on these impaired loans reflect only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately are not to be received). For the three and nine months ended March 31,September 30, 2019, and 2018, the amount of provision for loan losses related to loans acquired that have evidence of deterioration of credit quality resulted in provision for loan losses expense of $1,637$631 and $1,279, respectively.
$3,899, respectively, as compared to a provision for loan losses expense of $924 and $3,004, respectively, for the three and nine months ended September 30, 2018.
Commercial Real Estate | Construction | Allowance for | ||||||||||||||||||||||||||||||
Owner- occupied | Nonowner- occupied | Other Commercial | Residential Real Estate | & Land Development | Consumer | Estimated Imprecision | Total | |||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,063 | $ | 6,919 | $ | 41,341 | $ | 12,448 | $ | 7,992 | $ | 2,695 | $ | 245 | $ | 76,703 | ||||||||||||||||
Charge-offs | 3,737 | 0 | 934 | 441 | 565 | �� | 737 | 0 | 6,414 | |||||||||||||||||||||||
Recoveries | 904 | 19 | 297 | 85 | 113 | 183 | 0 | 1,601 | ||||||||||||||||||||||||
Provision | 3,934 | (220 | ) | (40 | ) | 930 | (354 | ) | 607 | 139 | 4,996 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Ending balance | $ | 6,164 | $ | 6,718 | $ | 40,664 | $ | 13,022 | $ | 7,186 | $ | 2,748 | $ | 384 | $ | 76,886 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Ending Balance: individually evaluated for impairment | $ | 1,485 | $ | 2,571 | $ | 14,699 | $ | 3,694 | $ | 2,225 | $ | 0 | $ | 0 | $ | 24,674 | ||||||||||||||||
Ending Balance: collectively evaluated for impairment | $ | 4,679 | $ | 4,147 | $ | 25,965 | $ | 9,328 | $ | 4,961 | $ | 2,748 | $ | 384 | | $ | 52,212 | |||||||||||||||
Ending Balance: loans acquired with deteriorated credit quality | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Financing receivables: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 1,275,340 | $ | 4,266,613 | $ | 1,996,482 | $ | 3,550,037 | $ | 1,487,453 | $ | 1,002,293 | $ | 0 | $ | 13,578,218 | ||||||||||||||||
Ending Balance: individually evaluated for impairment | $ | 26,820 | $ | 25,300 | $ | 60,451 | $ | 20,355 | $ | 14,740 | $ | 0 | $ | 0 | $ | 147,666 | ||||||||||||||||
Ending Balance: collectively evaluated for impairment | $ | 1,219,621 | $ | 4,181,511 | $ | 1,911,199 | $ | 3,518,699 | $ | 1,452,865 | $ | 1,002,266 | $ | 0 | $ | 13,286,161 | | |||||||||||||||
Ending Balance: loans acquired with deteriorated credit quality | $ | 28,899 | $ | 59,802 | $ | 24,832 | $ | 10,983 | $ | 19,848 | $ | 27 | $ | 0 | $ | 144,391 |
Allowance for Loan Losses and Carrying Amount
Commercial Real Estate | Construction | Allowance for | ||||||||||||||||||||||||||||||
Owner- occupied | Nonowner- occupied | Other Commercial | Residential Real Estate | & Land Development | Consumer | Estimated Imprecision | Total | |||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,597 | $ | 6,041 | $ | 44,709 | $ | 10,172 | $ | 6,925 | $ | 2,723 | $ | 233 | $ | 76,400 | ||||||||||||||||
Charge-offs | (1,340 | ) | (509 | ) | (2,135 | ) | (942 | ) | (0 | ) | (478 | ) | (0 | ) | (5,404 | ) | ||||||||||||||||
Recoveries | 145 | 16 | 703 | 69 | 12 | 124 | 0 | 1,069 | ||||||||||||||||||||||||
Provision | 786 | 1,118 | 3,464 | 14 | (750 | ) | 529 | (128 | ) | 5,033 | ||||||||||||||||||||||
Ending balance | $ | 5,188 | $ | 6,666 | $ | 46,741 | $ | 9,313 | $ | 6,187 | $ | 2,898 | $ | 105 | $ | 77,098 | ||||||||||||||||
Allowance for Loan Losses and Carrying Amount of Loans | ||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||
Commercial Real Estate | Construction | Allowance for | ||||||||||||||||||||||||||||||
Owner- occupied | Nonowner- occupied | Other Commercial | Residential Real Estate | & Land Development | Consumer | Estimated Imprecision | Total | |||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,063 | $ | 6,919 | $ | 41,341 | $ | 12,448 | $ | 7,992 | $ | 2,695 | $ | 245 | $ | 76,703 | ||||||||||||||||
Charge-offs | (7,861 | ) | (578 | ) | (6,714 | ) | (1,692 | ) | (573 | ) | (1,988 | ) | (0 | ) | (19,406 | ) | ||||||||||||||||
Recoveries | 1,763 | 57 | 1,420 | 423 | 164 | 528 | 0 | 4,355 | ||||||||||||||||||||||||
Provision | 6,223 | 268 | 10,694 | (1,866 | ) | (1,396 | ) | 1,663 | (140 | ) | 15,446 | |||||||||||||||||||||
Ending balance | $ | 5,188 | $ | 6,666 | $ | 46,741 | $ | 9,313 | $ | 6,187 | $ | 2,898 | $ | 105 | $ | 77,098 | ||||||||||||||||
occupied
occupied
Commercial
Real Estate
Development
Imprecision $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
occupied
occupied
Commercial
Real Estate
Development
Imprecision $ $ $ $ $ $ $ $ ) ) ) ) ) ) ) ) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
Allowance for Loan Losses and Carrying Amount of Loans | ||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Commercial Real Estate | Construction | Allowance for | ||||||||||||||||||||||||||||||
Owner- occupied | Nonowner- occupied | Other Commercial | Residential Real Estate | & Land Development | Consumer | Estimated Imprecision | Total | |||||||||||||||||||||||||
Financing receivables: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 1,291,790 | $ | 4,303,613 | $ | 1,957,641 | $ | 3,501,393 | $ | 1,410,468 | $ | 964,627 | $ | 0 | $ | 13,429,532 | ||||||||||||||||
Ending Balance: individually evaluated for impairment | $ | 27,599 | $ | 25,231 | $ | 72,300 | $ | 21,998 | $ | 14,807 | $ | 0 | $ | 0 | $ | 161,935 | ||||||||||||||||
Ending Balance: collectively evaluated for impairment | $ | 1,234,919 | $ | 4,215,060 | $ | 1,860,085 | $ | 3,468,356 | $ | 1,374,840 | $ | 964,600 | $ | 0 | $ | 13,117,860 | ||||||||||||||||
Ending Balance: loans acquired with deteriorated credit quality | $ | 29,272 | $ | 63,322 | $ | 25,256 | $ | 11,039 | $ | 20,821 | $ | 27 | $ | 0 | $ | 149,737 |
March 31, 2019 | ||||||||||||||||||||||||
Community Banking | Mortgage Banking | Total | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||||||||
Core deposit intangible assets | $ | 98,359 | ($ | 64,246 | ) | $ | 0 | ($ | 0 | ) | $ | 98,359 | ($ | 64,246 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Non-amortized intangible assets: | ||||||||||||||||||||||||
George Mason trade name | $ | 0 | $ | 1,080 | $ | 1,080 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Goodwill not subject to amortization | $ | 1,472,699 | $ | 5,315 | $ | 1,478,014 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
Community Banking | Mortgage Banking | Total | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||||||||
Core deposit intangible assets | $ | 98,359 | ($ | 62,492 | ) | $ | 0 | $ | 0 | $ | 98,359 | ($ | 62,492 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Non-amortized intangible assets: | ||||||||||||||||||||||||
George Mason trade name | $ | 0 | $ | 1,080 | $ | 1,080 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Goodwill not subject to amortization | $ | 1,472,699 | $ | 5,315 | $ | 1,478,014 | ||||||||||||||||||
|
|
|
|
|
|
September 30, 2019 | ||||||||||||||||||||||||
Community Banking | Mortgage Banking | Total | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||||||||
Core deposit intangible assets | $ | 98,359 | $ | (67,754 | ) | $ | 0 | $ | 0 | $ | 98,359 | $ | (67,754 | ) | ||||||||||
Non-amortized intangible assets: | ||||||||||||||||||||||||
George Mason trade name | $ | 0 | $ | 1,080 | $ | 1,080 | ||||||||||||||||||
Goodwill not subject to amortization | $ | 1,472,699 | $ | 5,315 | $ | 1,478,014 | ||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
Community Banking | Mortgage Banking | Total | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||||||||
Core deposit intangible assets | $ | 98,359 | $ | (62,492 | ) | $ | 0 | $ | 0 | $ | 98,359 | $ | (62,492 | ) | ||||||||||
Non-amortized intangible assets: | ||||||||||||||||||||||||
George Mason trade name | $ | 0 | $ | 1,080 | $ | 1,080 | ||||||||||||||||||
Goodwill not subject to amortization | $ | 1,472,699 | $ | 5,315 | $ | 1,478,014 | ||||||||||||||||||
Community Banking | Mortgage Banking | Total | ||||||||||
Goodwill at December 31, 2018 | $ | 1,472,699 | $ | 5,315 | $ | 1,478,014 | ||||||
Addition to goodwill | 0 | 0 | 0 | |||||||||
|
|
|
|
|
| |||||||
Goodwill at March 31, 2019 | $ | 1,472,699 | $ | 5,315 | $ | 1,478,014 | ||||||
|
|
|
|
|
|
Community Banking | Mortgage Banking | Total | ||||||||||
Goodwill at December 31, 2018 | $ | 1,472,699 | $ | 5,315 | $ | 1,478,014 | ||||||
Additions to goodwill | 0 | 0 | 0 | |||||||||
Goodwill at September 30, 2019 | $ | 1,472,699 | $ | 5,315 | $ | 1,478,014 | ||||||
Year | Amount | |||
2019 | $ | 7,016 | ||
2020 | 6,309 | |||
2021 | 5,369 | |||
2022 | 4,581 | |||
2023 and thereafter | 12,592 |
Three Months Ended | ||||||||
Classification | March 31, 2019 | |||||||
Operating lease cost | Net occupancy expense | $ | 4,821 | |||||
Sublease income | Net occupancy expense | (276 | ) | |||||
|
| |||||||
Net lease cost | $ | 4,545 | ||||||
|
|
Three Months Ended | Nine Months Ended | |||||||||||
Classification | September 30, 2019 | September 30, 2019 | ||||||||||
Operating lease cost | Net occupancy expense | $ | 4,864 | $ | 14,571 | |||||||
Sublease income | Net occupancy expense | (197 | ) | (671 | ) | |||||||
Net lease cost | $ | 4,667 | $ | 13,900 | ||||||||
Classification | March 31, 2019 | |||||
Operating leaseright-of-use assets | Operating lease right-of-use assets | $ | 63,119 | |||
Operating lease liabilities | Operating lease liabilities | $ | 66,871 |
Classification | September 30, 2019 | |||||||
Operating lease right-of-use assets | Operating lease right-of-use assets | $ | 60,318 | |||||
Operating lease liabilities | Operating lease liabilities | $ | 63,987 |
September 30, 2019 | ||||
Weighted-average remaining lease term: | ||||
| ||||
| ||||
Operating leases | 5.01 | |||
Weighted-average discount rate: | ||||
Operating leases | 3.23 | % |
Three Months Ended | ||||
March 31, 2019 | ||||
Cash paid for amounts in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | 4,718 | ||
ROU assets obtained in the exchange for lease liabilties | 202 |
Three Months Ended | Nine Months Ended | |||||||
September 30, 2019 | September 30, 2019 | |||||||
Cash paid for amounts in the measurement of lease liabilities: | ||||||||
Operating cash flows from operating leases | $ | 4,903 | $ | 14,552 | ||||
ROU assets obtained in the exchange for lease liabilties | 1,537 | 5,953 |
Amount | ||||||||
Year | As of March 31, 2019 | As of December 31, 2018 | ||||||
2019 | $ | 14,049 | $ | 18,590 | ||||
2020 | 16,402 | 16,359 | ||||||
2021 | 13,894 | 13,850 | ||||||
2022 | 10,313 | 10,269 | ||||||
2023 | 7,644 | 7,600 | ||||||
Thereafter | 10,654 | 10,640 | ||||||
Total lease payments | 72,956 | 77,308 | ||||||
|
|
|
| |||||
Less: imputed interest | (6,085 | ) | (0 | ) | ||||
|
|
|
| |||||
Total | $ | 66,871 | $ | 77,308 | ||||
|
|
|
|
Amount | ||||||||
Year | As of September 30, 2019 | As of December 31, 2018 | ||||||
2019 | $ | 4,817 | $ | 18,590 | ||||
2020 | 17,415 | 16,359 | ||||||
2021 | 14,868 | 13,850 | ||||||
2022 | 11,206 | 10,269 | ||||||
2023 | 8,431 | 7,600 | ||||||
Thereafter | 12,798 | 10,640 | ||||||
Total lease payments | 69,535 | 77,308 | ||||||
Less: imputed interest | (5,548 | ) | (0 | ) | ||||
Total | $ | 63,987 | $ | 77,308 | ||||
Year | Amount | |||
2019 | $ | 1,227,181 | ||
2020 | 41,745 | |||
2021 | 302,581 | |||
2022 | 20,873 | |||
2023 and thereafter | 11,235 | |||
|
| |||
Total | $ | 1,603,615 | ||
|
|
Year | Amount | |||
2019 | $ | 220,918 | ||
2020 | 591,837 | |||
2021 | 827,636 | |||
2022 | 20,918 | |||
2023 and thereafter | 11,139 | |||
Total | $ | 1,672,448 | ||
adjustments due to changes in the fair value of a derivative that qualifies as a fair value hedge are recorded in income in the same period and in the same income statement line as changes in the fair values of the hedged items that relate to the hedged risk(s). For a cash flow hedge, the fair value of the interest rate swap is recognized on the balance sheet as either a freestanding asset or liability with a corresponding adjustment to other comprehensive income within shareholders’ equity, net of tax. Subsequent adjustments due to changes in the fair value of a derivative that qualifies as a cash flow hedge are recorded as a component of other comprehensive income, net of deferred taxes, and reclassified to earnings when the hedged transaction affects earnings. The portion of a hedge that is ineffective is recognized immediately in earnings.
Asset Derivatives | ||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | |||||||||||||||||||||||
Balance Sheet Location | Notional Amount | Fair Value | Balance Sheet Location | Notional Amount | Fair Value | |||||||||||||||||||
Derivatives designated as hedging instruments Fair Value Hedges: | ||||||||||||||||||||||||
Interest rate swap contracts (hedging commercial loans) | Other assets | $ | 67,961 | $ | 431 | Other assets | $ | 85,623 | $ | 1,859 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total derivatives designated as hedging instruments | $ | 67,961 | $ | 431 | $ | 85,623 | $ | 1,859 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||
Interest rate swap contracts | Other assets | $ | 0 | $ | 0 | Other assets | $ | 0 | $ | 0 | ||||||||||||||
Forward loan sales commitments | Other assets | 24,608 | 380 | Other assets | 21,604 | 542 | ||||||||||||||||||
Interest rate lock commitments | Other assets | 181,585 | 6,684 | Other assets | 93,955 | 4,103 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 206,193 | $ | 7,064 | $ | 115,559 | $ | 4,645 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total asset derivatives | $ | 274,154 | $ | 7,495 | $ | 201,182 | $ | 6,504 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | |||||||||||||||||||||||
Balance Sheet Location | Notional Amount | Fair Value | Balance Sheet Location | Notional Amount | Fair Value | |||||||||||||||||||
Derivatives designated as hedging instruments Fair Value Hedges: | ||||||||||||||||||||||||
Interest rate swap contracts (hedging commercial loans) | Other liabilities | $ | 17,494 | $ | 146 | Other liabilities | $ | 0 | $ | 0 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total derivatives designated as hedging instruments | $ | 17,494 | $ | 146 | $ | 0 | $ | 0 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||
Interest rate swap contracts | Other liabilities | $ | 0 | $ | 0 | Other liabilities | $ | 0 | $ | 0 | ||||||||||||||
TBA mortgage-backed securities | Other liabilities | 250,510 | 2,515 | Other liabilities | 200,281 | 3,002 | ||||||||||||||||||
Interest rate lock commitments | Other liabilities | 0 | 0 | Other liabilities | 0 | 0 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 250,510 | $ | 2,515 | $ | 200,281 | $ | 3,002 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total liability derivatives | $ | 268,004 | $ | 2,661 | $ | 200,281 | $ | 3,002 | ||||||||||||||||
|
|
|
|
|
|
|
|
Asset Derivatives | ||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
Balance Sheet Location | Notional Amount | Fair Value | Balance Sheet Location | Notional Amount | Fair Value | |||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||
Interest rate swap contracts (hedging commercial loans) | Other assets | $ | 0 | $ | 0 | Other assets | $ | 85,623 | $ | 1,859 | ||||||||||||||
Total derivatives designated as hedging instruments | $ | 0 | $ | 0 | $ | 85,623 | $ | 1,859 | ||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||
Interest rate swap contracts | Other assets | $ | 0 | $ | 0 | Other assets | $ | 0 | $ | 0 | ||||||||||||||
Forward loan sales commitments | Other assets | 30,969 | 44 | Other assets | 21,604 | 542 | ||||||||||||||||||
Interest rate lock commitments | Other assets | 262,313 | 7,030 | Other assets | 93,955 | 4,103 | ||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 293,282 | $ | 7,074 | $ | 115,559 | $ | 4,645 | ||||||||||||||||
Total asset derivatives | $ | 293,282 | $ | 7,074 | $ | 201,182 | $ | 6,504 | ||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
Balance Sheet Location | Notional Amount | Fair Value | Balance Sheet Location | Notional Amount | Fair Value | |||||||||||||||||||
Derivatives designated as hedging instruments Fair Value Hedges: | ||||||||||||||||||||||||
Interest rate swap contracts (hedging commercial loans) | Other liabilities | $ | 83,328 | $ | 3,921 | Other liabilities | $ | 0 | $ | 0 | ||||||||||||||
Total derivatives designated as hedging instruments | $ | 83,328 | $ | 3,921 | $ | 0 | $ | 0 | ||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||
Interest rate swap contracts | Other liabilities | $ | 0 | $ | 0 | Other liabilities | $ | 0 | $ | 0 | ||||||||||||||
TBA mortgage-backed securities | Other liabilities | 427,500 | 835 | Other liabilities | 200,281 | 3,002 | ||||||||||||||||||
Interest rate lock commitments | Other liabilities | 0 | 0 | Other liabilities | 0 | 0 | ||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 427,500 | $ | 835 | $ | 200,281 | $ | 3,002 | ||||||||||||||||
Total liability derivatives | $ | 510,828 | $ | 4,756 | $ | 200,281 | $ | 3,002 | ||||||||||||||||
September 30, 2019 | ||||||||||||||||
Derivatives in Fair Value Hedging Relationships | Location in the Statement of Condition | Carrying Amount of the Hedged Assets/(Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Remaining for any Hedged Assets/ (Liabilities) for which Hedge Accounting has been Discontinued | ||||||||||||
Interest rate swaps | Loans, net of unearned income | $ | 82,470 | $ | (3,921 | ) | $ | 0 |
Derivatives in Fair Value Hedging Relationships | Location in the Statement of Condition | March 31, 2019 | ||||||||||||
Carrying Amount of the Hedged Assets/(Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Remaining for any Hedged Assets/ (Liabilities) for which Hedge Accounting has been Discontinued | ||||||||||||
Interest rate swaps | Loans, net of unearned income | $ | 84,574 | $ | 285 | $ | 0 |
Three Months Ended | ||||||||||
Income Statement Location | March 31, 2019 | March 31, 2018 | ||||||||
Derivatives in hedging relationships Fair Value Hedges: | ||||||||||
Interest rate swap contracts | Interest and fees on loans | $ | (30 | ) | $ | (42 | ) | |||
|
|
|
| |||||||
Total derivatives in hedging relationships | $ | (30 | ) | $ | (42 | ) | ||||
|
|
|
| |||||||
Derivatives not designated as hedging instruments | ||||||||||
Forward loan sales commitments | Income from Mortgage Banking Activities | $ | 380 | $ | 73 | |||||
TBA mortgage-backed securities | Income from Mortgage Banking Activities | 488 | (450 | ) | ||||||
Interest rate lock commitments | Income from Mortgage Banking Activities | 2,037 | (1,269 | ) | ||||||
|
|
|
| |||||||
Total derivatives not designated as hedging instruments | $ | 2,905 | $ | (1,646 | ) | |||||
|
|
|
| |||||||
Total derivatives | $ | 2,875 | $ | (1,688 | ) | |||||
|
|
|
|
Three Months Ended | ||||||||||
Income Statement Location | September 30, 2019 | September 30, 2018 | ||||||||
Derivatives in hedging relationships Fair Value Hedges: | ||||||||||
Interest rate swap contracts | Interest income/(expense) | $ | (187 | ) | $ | (24 | ) | |||
Total derivatives in hedging relationships | $ | (187 | ) | $ | (24 | ) | ||||
Derivatives not designated as hedging instruments | ||||||||||
Forward loan sales commitments | Income from Mortgage Banking Activities | 44 | (197 | ) | ||||||
TBA mortgage-backed securities | Income from Mortgage Banking Activities | 2,641 | 2,583 | |||||||
Interest rate lock commitments | Income from Mortgage Banking Activities | 602 | (3,262 | ) | ||||||
Total derivatives not designated as hedging instruments | $ | 3,287 | $ | (876 | ) | |||||
Total derivatives | $ | 3,100 | $ | (900 | ) | |||||
Nine Months Ended | ||||||||||
Income Statement Location | September 30, 2019 | September 30, 2018 | ||||||||
Derivatives in fair value hedging relationships Fair Value Hedges: | ||||||||||
Interest rate swap contracts | Interest income/(expense) | $ | (285 | ) | $ | (42 | ) | |||
Cash Flow Hedges: | ||||||||||
Forward loan sales commitments | Other income | 0 | 0 | |||||||
Total derivatives in hedging relationships | $ | (285 | ) | $ | (42 | ) | ||||
Derivatives not designated as hedging instruments | ||||||||||
Forward loan sales commitments | Income from Mortgage Banking Activities | 916 | (12 | ) | ||||||
TBA mortgage-backed securities | Income from Mortgage Banking Activities | 2,167 | 1,473 | |||||||
Interest rate lock commitments | Income from Mortgage Banking Activities | 6,472 | (1,643 | ) | ||||||
Total derivatives not designated as hedging instruments | $ | 9,555 | $ | (182 | ) | |||||
Total derivatives | $ | 9,270 | $ | (224 | ) | |||||
Level 1 | - | Valuation is based on quoted prices in active markets for identical assets and liabilities. |
| ||||||
Level 2 | - | Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. | ||||
| ||||||
Level 3 | - | Valuation is based on prices, inputs and model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. |
and minimizes the use of unobservable inputs is the most representative measurement technique for these securities. The present value technique discounts expected future cash flows of a security to arrive at a present value. Management considers the following items when calculating the appropriate discount rate: the implied rate of return when the market was last active, changes in the implied rate of return as markets moved from very active to inactive, recent changes in credit ratings, and recent activity showing that the market has built in increased liquidity and credit premiums. Management’s internal credit review of each security was also factored in to determine the appropriate discount rate. The credit review considered each security’s collateral, subordination, excess spread, priority of claims, principal and interest.
fall into a Level 12 category. The forward sales contracts lock in an interest rate and price for the sale of loans similar to the specific rate lock commitments. Under the Company’s best efforts model, the rate lock commitments to borrowers and the forward sales contracts to investors through to the date the loan closes are undesignated derivatives and accordingly, are marked to fair value through earnings. These valuations fall into a Level 2 category. For residential mortgage loans sold in the mortgage banking segment, the interest rate lock commitments are recorded at fair value which is measured using valuations from investors for loans with similar characteristics adjusted for the Company’s actual sales experience versus the investor’s indicated pricing. These valuations fall into the Level 3 category. The unobservable input is the Company’s historical sales prices. The range of historical sales prices increased the investor’s indicated pricing by a range of 0.02%0.25% to 0.52%0.59% with a weighted average increase of 0.35%0.40%.
Fair Value at March 31, 2019 Using | ||||||||||||||||
Description | Balance as of March 31, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets | ||||||||||||||||
Available for sale debt securities: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 73,544 | $ | 0 | $ | 73,544 | $ | 0 | ||||||||
State and political subdivisions | 194,812 | 0 | 194,812 | 0 | ||||||||||||
Residential mortgage-backed securities | ||||||||||||||||
Agency | 969,516 | 0 | 969,516 | 0 | ||||||||||||
Non-agency | 4,107 | 0 | 4,107 | 0 | ||||||||||||
Commercial mortgage-backed securities | ||||||||||||||||
Agency | 580,338 | 0 | 580,338 | 0 | ||||||||||||
Asset-backed securities | 270,677 | 0 | 270,677 | 0 | ||||||||||||
Trust preferred collateralized debt obligations | 6,017 | 0 | 0 | 6,017 | ||||||||||||
Single issue trust preferred securities | 16,841 | 0 | 16,841 | 0 | ||||||||||||
Other corporate securities | 268,203 | 6,785 | 261,418 | 0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total available for sale securities | 2,384,055 | 6,785 | 2,371,253 | 6,017 | ||||||||||||
Equity securities: | ||||||||||||||||
Financial services industry | 145 | 145 | 0 | 0 | ||||||||||||
Equity mutual funds (1) | 5,084 | 5,084 | 0 | 0 | ||||||||||||
Other equity securities | 4,692 | 4,692 | 0 | 0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total equity securities | 9,921 | 9,921 | 0 | 0 | ||||||||||||
Loans held for sale | 244,501 | 0 | 0 | 244,501 | ||||||||||||
Derivative financial assets: | ||||||||||||||||
Interest rate swap contracts | 431 | 0 | 431 | 0 | ||||||||||||
Forward sales commitments | 380 | 0 | 380 | 0 | ||||||||||||
Interest rate lock commitments | 6,684 | 0 | 0 | 6,684 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total derivative financial assets | 7,495 | 0 | 811 | 6,684 |
Fair Value at September 30, 2019 Using | ||||||||||||||||
Description | Balance as of September 30, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets | ||||||||||||||||
Available for sale debt securities: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 64,034 | $ | 0 | $ | 64,034 | $ | 0 | ||||||||
State and political subdivisions | 238,515 | 0 | 238,515 | 0 | ||||||||||||
Residential mortgage-backed securities | ||||||||||||||||
Agency | 867,281 | 0 | 867,281 | 0 | ||||||||||||
Non-agency | 3,995 | 0 | 3,995 | 0 | ||||||||||||
Commercial mortgage-backed securities | ||||||||||||||||
Agency | 621,652 | 0 | 621,652 | 0 | ||||||||||||
Asset-backed securities | 279,707 | 0 | 279,707 | 0 | ||||||||||||
Trust preferred collateralized debt obligations | 5,069 | 0 | 0 | 5,069 | ||||||||||||
Single issue trust preferred securities | 16,544 | 0 | 16,544 | 0 | ||||||||||||
Other corporate securities | 355,300 | 6,673 | 348,627 | 0 | ||||||||||||
Total available for sale securities | 2,452,097 | 6,673 | 2,440,355 | 5,069 | ||||||||||||
Equity securities: | ||||||||||||||||
Financial services industry | 159 | 159 | 0 | 0 | ||||||||||||
Equity mutual funds (1) | 3,965 | 3,965 | 0 | 0 | ||||||||||||
Other equity securities | 4,790 | 4,790 | 0 | 0 | ||||||||||||
Total equity securities | 8,914 | 8,914 | 0 | 0 | ||||||||||||
407,463 | 0 | 0 | 407,463 | |||||||||||||
Derivative financial assets: |
Fair Value at March 31, 2019 Using | ||||||||||||||||
Description | Balance as of March 31, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Liabilities | ||||||||||||||||
Derivative financial liabilities: | ||||||||||||||||
Interest rate swap contracts | 146 | 0 | 146 | 0 | ||||||||||||
TBA mortgage-backed securities | 2,515 | 0 | 2,515 | 0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total derivative financial liabilities | 2,661 | 0 | 2,661 | 0 |
Fair Value at September 30, 2019 Using | ||||||||||||||||
Description | Balance as of September 30, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Interest rate swap contracts | 0 | 0 | 0 | 0 | ||||||||||||
Forward sales commitments | 44 | 0 | 44 | 0 | ||||||||||||
Interest rate lock commitments | 7,030 | 0 | 0 | 7,030 | ||||||||||||
Total derivative financial assets | 7,074 | 0 | 44 | 7,030 | ||||||||||||
Liabilities | ||||||||||||||||
Derivative financial liabilities: | ||||||||||||||||
Interest rate swap contracts | 3,921 | 0 | 3.921 | 0 | ||||||||||||
TBA mortgage-backed securities | 835 | 0 | 835 | 0 | ||||||||||||
Total derivative financial liabilities | 4,756 | 0 | 4,756 | 0 |
(1) | The equity mutual funds are within a rabbi trust for the payment of benefits under a deferred compensation plan for certain key officers of United and its subsidiaries. |
Fair Value at December 31, 2018 Using | ||||||||||||||||
Description | Balance as of December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets | ||||||||||||||||
Available for sale debt securities: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 85,890 | $ | 0 | $ | 85,890 | $ | 0 | ||||||||
State and political subdivisions | 208,988 | 0 | 208,988 | 0 | ||||||||||||
Residential mortgage-backed securities | ||||||||||||||||
Agency | 1,035,650 | 0 | 1,035,650 | 0 | ||||||||||||
Non-agency | 4,259 | 0 | 4,259 | 0 | ||||||||||||
Commercial mortgage-backed securities | ||||||||||||||||
Agency | 554,600 | 0 | 554,600 | 0 | ||||||||||||
Asset-backed securities | 271,970 | 0 | 271,970 | 0 | ||||||||||||
Trust preferred collateralized debt obligations | 5,917 | 0 | 0 | 5,917 | ||||||||||||
Single issue trust preferred securities | 8,362 | 0 | 8,362 | 0 | ||||||||||||
Other corporate securities | 161,403 | 6,822 | 154,581 | 0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total available for sale securities | 2,337,039 | 6,822 | 2,324,300 | 5,917 | ||||||||||||
Equity securities: | ||||||||||||||||
Financial services industry | 140 | 140 | 0 | 0 | ||||||||||||
Equity mutual funds (1) | 4,954 | 4,954 | 0 | 0 | ||||||||||||
Other equity securities | 4,640 | 4,640 | 0 | 0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total equity securities | 9,734 | 9,734 | 0 | 0 | ||||||||||||
Loans held for sale | 247,104 | 0 | 0 | 247,104 | ||||||||||||
Derivative financial assets: | ||||||||||||||||
Interest rate swap contracts | 1,859 | 0 | 1,859 | 0 | ||||||||||||
Forward sales commitments | 542 | 0 | 542 | 0 | ||||||||||||
Interest rate lock commitments | 4,103 | 0 | 0 | 4,103 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total derivative financial assets | 6,504 | 0 | 2,401 | 4,103 | ||||||||||||
Liabilities | ||||||||||||||||
Derivative financial liabilities: | ||||||||||||||||
TBA mortgage-backed securities | 3,002 | 0 | 3,002 | 0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total derivative financial liabilities | 3,002 | 0 | 3,002 | 0 |
Fair Value at December 31, 2018 Using | ||||||||||||||||
Description | Balance as of December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets | ||||||||||||||||
Available for sale debt securities: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 85,890 | $ | 0 | $ | 85,890 | $ | 0 | ||||||||
State and political subdivisions | 208,988 | 0 | 208,988 | 0 | ||||||||||||
Residential mortgage-backed securities | ||||||||||||||||
Agency | 1,035,650 | 0 | 1,035,650 | 0 | ||||||||||||
Non-agency | 4,259 | 0 | 4,259 | 0 | ||||||||||||
Commercial mortgage-backed securities | ||||||||||||||||
Agency | 554,600 | 0 | 554,600 | 0 | ||||||||||||
Asset-backed securities | 271,970 | 0 | 271,970 | 0 | ||||||||||||
Trust preferred collateralized debt obligations | 5,917 | 0 | 0 | 5,917 | ||||||||||||
Single issue trust preferred securities | 8,362 | 0 | 8,362 | 0 | ||||||||||||
Other corporate securities | 161,403 | 6,822 | 154,581 | 0 | ||||||||||||
Total available for sale securities | 2,337,039 | 6,822 | 2,324,300 | 5,917 | ||||||||||||
Equity securities: | ||||||||||||||||
Financial services industry | 140 | 140 | 0 | 0 | ||||||||||||
Equity mutual funds (1) | 4,954 | 4,954 | 0 | 0 | ||||||||||||
Other equity securities | 4,640 | 4,640 | 0 | 0 | ||||||||||||
Total equity securities | 9,734 | 9,734 | 0 | 0 | ||||||||||||
Loans held for sale | 247,104 | 0 | 0 | 247,104 | ||||||||||||
Derivative financial assets: | ||||||||||||||||
Interest rate swap contracts | 1,859 | 0 | 1,859 | 0 | ||||||||||||
Forward sales commitments | 542 | 0 | 542 | 0 | ||||||||||||
Interest rate lock commitments | 4,103 | 0 | 0 | 4,103 | ||||||||||||
Total derivative financial assets | 6,504 | 0 | 2,401 | 4,103 | ||||||||||||
Liabilities | ||||||||||||||||
Derivative financial liabilities: | ||||||||||||||||
TBA mortgage-backed securities | 3,002 | 0 | 3,002 | 0 | ||||||||||||
Total derivative financial liabilities | 3,002 | 0 | 3,002 | 0 |
(1) | The equity mutual funds are within a rabbi trust for the payment of benefits under a deferred compensation plan for certain key officers of United and its subsidiaries. |
Available for sale Securities | ||||||||
Trust preferred collateralized debt obligations | ||||||||
March 31, 2019 | December 31, 2018 | |||||||
Balance, beginning of period | $ | 5,917 | $ | 34,269 | ||||
Total gains or losses (realized/unrealized): | ||||||||
Included in earnings (or changes in net assets) | 0 | 28 | ||||||
Included in other comprehensive income | 100 | 920 | ||||||
Purchases, issuances, and settlements | 0 | 0 | ||||||
Sales | 0 | (29,300 | ) | |||||
Transfers in and/or out of Level 3 | 0 | 0 | ||||||
|
|
|
| |||||
Balance, end of period | $ | 6,017 | $ | 5,917 | ||||
|
|
|
| |||||
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date | $ | 0 | $ | 0 | ||||
Loans held for sale | ||||||||
March 31, 2019 | December 31, 2018 | |||||||
Balance, beginning of period | $ | 247,104 | $ | 263,308 | ||||
Originations | 454,588 | 2,619,454 | ||||||
Sales | (473,282 | ) | (2,676,797 | ) | ||||
Total gains or losses during the period recognized in earnings | 16,091 | 68,555 | ||||||
Transfers in and/or out of Level 3 | (0 | ) | (27,416 | ) | ||||
|
|
|
| |||||
Balance, end of period | $ | 244,501 | $ | 247,104 | ||||
|
|
|
| |||||
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date | $ | 0 | $ | 0 |
Available for sale Securities | ||||||||
Trust preferred collateralized debt obligations | ||||||||
September 30, 2019 | December 31, 2018 | |||||||
Balance, beginning of period | $ | 5,917 | $ | 34,269 | ||||
Total gains or losses (realized/unrealized): | ||||||||
Included in earnings (or changes in net assets) | (62 | ) | 28 | |||||
Included in other comprehensive income | (786 | ) | 920 | |||||
Purchases, issuances, and settlements | 0 | 0 | ||||||
Sales | 0 | (29,300 | ) | |||||
Transfers in and/or out of Level 3 | 0 | 0 | ||||||
Balance, end of period | $ | 5,069 | $ | 5,917 | ||||
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date | $ | 0 | $ | 0 | ||||
Loans held for sale | ||||||||
September 30, 2019 | December 31, 2018 | |||||||
Balance, beginning of period | $ | 247,104 | $ | 263,308 | ||||
Originations | 2,164,410 | 2,619,454 | ||||||
Sales | (2,067,954 | ) | (2,676,797 | ) | ||||
Total gains or losses during the period recognized in earnings | 63,903 | 68,555 | ||||||
Transfers in and/or out of Level 3 | 0 | (27,416 | ) | |||||
Balance, end of period | $ | 407,463 | $ | 247,104 | ||||
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date | $ | 0 | $ | 0 |
Derivative Financial Assets Interest Rate Lock Commitments | ||||||||
September 30, 2019 | December 31, 2018 | |||||||
Balance, beginning of period | $ | 4,103 | $ | 4,559 | ||||
Transfers other | 2,927 | (456 | ) | |||||
Balance, end of period | $ | 7,030 | $ | 4,103 | ||||
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date | $ | 0 | $ | 0 |
Derivative Financial Assets Interest Rate Lock Commitments | ||||||||
March 31, 2019 | December 31, 2018 | |||||||
Balance, beginning of period | $ | 4,103 | $ | 4,559 | ||||
Transfers other | 2,581 | (456 | ) | |||||
|
|
|
| |||||
Balance, end of period | $ | 6,684 | $ | 4,103 | ||||
|
|
|
| |||||
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date | $ | 0 | $ | 0 |
Description | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||
Assets | ||||||||
Loans held for sale | ||||||||
Income from mortgage banking activities | $ | 1,964 | $ | (1,719 | ) |
Description | Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | ||||||
Assets | ||||||||
Loans held for sale | ||||||||
Income from mortgage banking activities | $ | (1,304 | ) | $ | (5,929 | ) | ||
Description | Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | ||||||
Assets | ||||||||
Loans held for sale | ||||||||
Income from mortgage banking activities | $ | 5,238 | $ | (2,838 | ) |
March 31, 2019 | December 31, 2018 | |||||||||||||||||||||||
Description | Unpaid Principal Balance | Fair Value | Fair Value Over/(Under) Unpaid Principal Balance | Unpaid Principal Balance | Fair Value | Fair Value Over/(Under) Unpaid Principal Balance | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Loans held for sale | $ | 239,306 | $ | 244,501 | $ | 5,195 | $ | 241,293 | $ | 247,104 | $ | 5,811 |
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
Description | Unpaid Principal Balance | Fair Value | Fair Value Over/(Under) Unpaid Principal Balance | Unpaid Principal Balance | Fair Value | Fair Value Over/(Under) Unpaid Principal Balance | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Loans held for sale | $ | 399,341 | $ | 407,463 | $ | 8,122 | $ | 241,293 | $ | 247,104 | $ | 5,811 |
Carrying value at March 31, 2019 | ||||||||||||||||||||
Description | Balance as of March 31, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | YTD Losses | |||||||||||||||
Assets | ||||||||||||||||||||
Loans held for sale | $ | 1,262 | $ | 0 | $ | 1,262 | $ | 0 | $ | 0 | ||||||||||
Impaired Loans | 99,278 | 0 | 88,197 | 11,081 | 1,044 | |||||||||||||||
OREO | 17,465 | 0 | 17,465 | 0 | 857 | |||||||||||||||
Carrying value at December 31, 2018 | ||||||||||||||||||||
Description | Balance as of December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | YTD Losses | |||||||||||||||
Assets | ||||||||||||||||||||
Loans held for sale | $ | 2,742 | $ | 0 | $ | 2,742 | $ | 0 | $ | 3 | ||||||||||
Impaired Loans | 121,355 | 0 | 108,899 | 12,456 | 12,301 | |||||||||||||||
OREO | 16,865 | 0 | 16,865 | 0 | 910 |
Description | Carrying value at September 30, 2019 | |||||||||||||||||||
Balance as of September 30, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | YTD Gains (Losses) | ||||||||||||||||
Assets | ||||||||||||||||||||
Loans held for sale | $ | 4,731 | $ | 0 | $ | 4,731 | $ | 0 | $ | (4 | ) | |||||||||
Impaired Loans | 76,404 | 0 | 69,560 | 6,844 | 2,795 | |||||||||||||||
OREO | 18,367 | 0 | 18,291 | 76 | (1,453 | ) | ||||||||||||||
Description | Carrying value at December 31, 2018 | |||||||||||||||||||
Balance as of December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | YTD Gains (Losses) | ||||||||||||||||
Assets | ||||||||||||||||||||
Loans held for sale | $ | 2,742 | $ | 0 | $ | 2,742 | $ | 0 | $ | (3 | ) | |||||||||
Impaired Loans | 121,355 | 0 | 108,899 | 12,456 | (12,301 | ) | ||||||||||||||
OREO | 16,865 | 0 | 16,865 | 0 | (910 | ) |
Fair Value Measurements | ||||||||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||
March 31, 2019 | ||||||||||||||||||||
Cash and cash equivalents | $ | 1,172,657 | $ | 1,172,657 | $ | 0 | $ | 1,172,657 | $ | 0 | ||||||||||
Securities available for sale | 2,384,055 | 2,384,055 | 6,785 | 2,371,253 | 6,017 | |||||||||||||||
Securities held to maturity | 8,491 | 8,549 | 0 | 5,529 | 3,020 | |||||||||||||||
Equity securities | 9,921 | 9,921 | 9,921 | 0 | 0 | |||||||||||||||
Other securities | 190,123 | 180,617 | 0 | 0 | 180,617 | |||||||||||||||
Loans held for sale | 245,763 | 245,763 | 0 | 1,262 | 244,501 | |||||||||||||||
Loans | 13,495,817 | 12,940,089 | 0 | 0 | 12,940,089 | |||||||||||||||
Derivative financial assets | 7,495 | 7,495 | 0 | 811 | 6,684 | |||||||||||||||
Deposits | 14,159,397 | 14,133,078 | 0 | 14,133,078 | 0 | |||||||||||||||
Short-term borrowings | 127,821 | 127,821 | 0 | 127,821 | 0 | |||||||||||||||
Long-term borrowings | 1,838,835 | 1,815,824 | 0 | 1,815,824 | 0 | |||||||||||||||
Derivative financial liabilities | 2,661 | 2,661 | 0 | 2,661 | 0 | |||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Cash and cash equivalents | $ | 1,020,396 | $ | 1,020,396 | $ | 0 | $ | 1,020,396 | $ | 0 | ||||||||||
Securities available for sale | 2,337,039 | 2,337,039 | 6,822 | 2,324,300 | 5,917 | |||||||||||||||
Securities held to maturity | 19,999 | 18,655 | 0 | 15,635 | 3,020 | |||||||||||||||
Equity securities | 9,734 | 9,734 | 9,734 | 0 | 0 | |||||||||||||||
Other securities | 176,955 | 168,107 | 0 | 0 | 168,107 | |||||||||||||||
Loans held for sale | 249,846 | 249,846 | 0 | 2,742 | 247,104 | |||||||||||||||
Loans | 13,422,222 | 12,657,073 | 0 | 0 | 12,657,073 | |||||||||||||||
Derivative financial assets | 6,504 | 6,504 | 0 | 2,401 | 4,103 | |||||||||||||||
Deposits | 13,994,749 | 13,954,574 | 0 | 13,954,574 | 0 | |||||||||||||||
Short-term borrowings | 351,327 | 351,327 | 0 | 351,327 | 0 | |||||||||||||||
Long-term borrowings | 1,499,103 | 1,475,237 | 0 | 1,475,237 | 0 | |||||||||||||||
Derivative financial liabilities | 3,002 | 3,002 | 0 | 3,002 | 0 |
Fair Value Measurements | ||||||||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||
September 30, 2019 | ||||||||||||||||||||
Cash and cash equivalents | $ | 976,154 | $ | 976,154 | $ | 0 | $ | 976,154 | $ | 0 | ||||||||||
Securities available for sale | 2,452,097 | 2,452,097 | 6,673 | 2,440,355 | 5,069 | |||||||||||||||
Securities held to maturity | 1,471 | 1,472 | 0 | 452 | 1,020 | |||||||||||||||
Equity securities | 8,914 | 8,914 | 8,914 | 0 | 0 | |||||||||||||||
Other securities | 210,830 | 200,288 | 0 | 0 | 200,288 | |||||||||||||||
Loans held for sale | 412,194 | 412,194 | 0 | 4,731 | 407,463 | |||||||||||||||
Net l oans | 13,556,427 | 13,051,670 | 0 | 0 | 13,051,670 | |||||||||||||||
Derivative financial assets | 7,074 | 7,074 | 0 | 44 | 7,030 | |||||||||||||||
Deposits | 14,095,411 | 14,071,344 | 0 | 14,071,344 | 0 | |||||||||||||||
Short-term borrowings | 329,966 | 329,966 | 0 | 329,966 | 0 | |||||||||||||||
Long-term borrowings | 1,708,297 | 1,688,577 | 0 | 1,688,577 | 0 | |||||||||||||||
Derivative financial liabilities | 4,756 | 4,756 | 0 | 4,756 | 0 | |||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Cash and cash equivalents | $ | 1,020,396 | $ | 1,020,396 | $ | 0 | $ | 1,020,396 | $ | 0 | ||||||||||
Securities available for sale | 2,337,039 | 2,337,039 | 6,822 | 2,324,300 | 5,917 | |||||||||||||||
Securities held to maturity | 19,999 | 18,655 | 0 | 15,635 | 3,020 | |||||||||||||||
Equity securities | 9,734 | 9,734 | 9,734 | 0 | 0 | |||||||||||||||
Other securities | 176,955 | 168,107 | 0 | 0 | 168,107 | |||||||||||||||
Loans held for sale | 249,846 | 249,846 | 0 | 2,742 | 247,104 | |||||||||||||||
Net l oans | 13,345,519 | 12,657,073 | 0 | 0 | 12,657,073 | |||||||||||||||
Derivative financial assets | 6,504 | 6,504 | 0 | 2,401 | 4,103 | |||||||||||||||
Deposits | 13,994,749 | 13,954,574 | 0 | 13,954,574 | 0 | |||||||||||||||
Short-term borrowings | 351,327 | 351,327 | 0 | 351,327 | 0 | |||||||||||||||
Long-term borrowings | 1,499,103 | 1,475,237 | 0 | 1,475,237 | 0 | |||||||||||||||
Derivative financial liabilities | 3,002 | 3,002 | 0 | 3,002 | 0 |
Three Months Ended March 31, 2019 | ||||||||||||||||
Weighted Average | ||||||||||||||||
Shares | Aggregate Intrinsic Value | Remaining Contractual Term (Yrs.) | Exercise Price | |||||||||||||
Outstanding at January 1, 2019 | 1,730,389 | $ | 32.43 | |||||||||||||
Granted | 240,205 | 38.49 | ||||||||||||||
Exercised | (33,816 | ) | 19.81 | |||||||||||||
Forfeited or expired | (3,398 | ) | 24.67 | |||||||||||||
|
|
|
| |||||||||||||
Outstanding at March 31, 2019 | 1,933,380 | $ | 8,688,228 | 5.9 | $ | 33.41 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Exercisable at March 31, 2019 | 1,327,929 | $ | 8,635,343 | 4.5 | $ | 30.72 | ||||||||||
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2019 | ||||||||||||||||
Weighted Average | ||||||||||||||||
Aggregate | Remaining | |||||||||||||||
Intrinsic | Contractual | Exercise | ||||||||||||||
Shares | Value | Term (Yrs.) | Price | |||||||||||||
Outstanding at January 1, 2019 | 1,730,389 | $ | 32.43 | |||||||||||||
Granted | 240,205 | 38.49 | ||||||||||||||
Exercised | (98,613 | ) | 22.86 | |||||||||||||
Forfeited or expired | (116,561 | ) | 25.20 | |||||||||||||
Outstanding at September 30, 2019 | 1,755,420 | $ | 8,251,397 | 5.8 | $ | 34.27 | ||||||||||
Exercisable at September 30, 2019 | 1,165,233 | $ | 8,074,702 | 4.4 | $ | 31.71 | ||||||||||
Shares | Weighted-Average Grant Date Fair Value Per Share | |||||||
Nonvested at January 1, 2019 | 575,672 | $ | 7.86 | |||||
Granted | 240,205 | 7.16 | ||||||
Vested | (210,426 | ) | 7.74 | |||||
Forfeited or expired | (0 | ) | 0.00 | |||||
|
|
|
| |||||
Nonvested at March 31, 2019 | 605,451 | $ | 7.62 | |||||
|
|
|
|
Shares | Weighted-Average Grant Date Fair Value Per Share | |||||||
Nonvested at January 1, 2019 | 575,672 | $ | 7.86 | |||||
Granted | 240,205 | 7.16 | ||||||
Vested | (210,876 | ) | 7.74 | |||||
Forfeited or expired | (14,814 | ) | 7.55 | |||||
Nonvested at September 30, 2019 | 590,187 | $ | 7.62 | |||||
Number of Shares | Weighted-Average Grant Date Fair Value Per Share | |||||||
Outstanding at January 1, 2019 | 199,303 | $ | 39.67 | |||||
Granted | 126,427 | 38.49 | ||||||
Vested | (70,879 | ) | 39.29 | |||||
Forfeited | (0 | ) | 00.00 | |||||
|
|
|
| |||||
Outstanding at March 31, 2019 | 254,851 | $ | 39.19 | |||||
|
|
|
|
Number of Shares | Weighted-Average Grant Date Fair Value Per Share | |||||||
Outstanding at January 1, 2019 | 199,303 | $ | 39.67 | |||||
Granted | 126,427 | 38.49 | ||||||
Vested | (73,535 | ) | 39.28 | |||||
Forfeited | (4,149 | ) | 39.08 | |||||
Outstanding at September 30, 2019 | 248,046 | $ | 39.19 | |||||
Three Months Ended March 31 | ||||||||
2019 | 2018 | |||||||
Service cost | $ | 555 | $ | 658 | ||||
Interest cost | 1,442 | 1,295 | ||||||
Expected return on plan assets | (2,330 | ) | (2,522 | ) | ||||
Amortization of transition asset | 0 | 0 | ||||||
Recognized net actuarial loss | 1,171 | 1,149 | ||||||
Amortization of prior service cost | 0 | 0 | ||||||
|
|
|
| |||||
Net periodic pension (benefit) cost | $ | 838 | $ | 580 | ||||
|
|
|
| |||||
Weighted-Average Assumptions: | ||||||||
Discount rate | 4.52 | % | 3.83 | % | ||||
Expected return on assets | 7.00 | % | 7.00 | % | ||||
Rate of compensation increase (prior to age 45) | 3.50 | % | 3.50 | % | ||||
Rate of compensation increase | 3.00 | % | 3.00 | % |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Service cost | $ | 567 | $ | 673 | $ | 1,683 | $ | 1,997 | ||||||||
Interest cost | 1,474 | 1,324 | 4,375 | 3,927 | ||||||||||||
Expected return on plan assets | (2,382 | ) | (2,578 | ) | (7,068 | ) | (7,651 | ) | ||||||||
Recognized net actuarial loss | 1,198 | 1,174 | 3,553 | 3,485 | ||||||||||||
Net periodic pension (benefit) cost | $ | 857 | $ | 593 | $ | 2,543 | $ | 1,758 | ||||||||
Weighted-Average Assumptions: | ||||||||||||||||
Discount rate | 4.52 | % | 3.83 | % | 4.52 | % | 3.83 | % | ||||||||
Expected return on assets | 7.00 | % | 7.00 | % | 7.00 | % | 7.00 | % | ||||||||
Rate of compensation increase (prior to age 45) | 3.50 | % | 3.50 | % | 3.50 | % | 3.50 | % | ||||||||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | 3.00 | % |
2018.
Three Months Ended | ||||||||
March 31 | ||||||||
2019 | 2018 | |||||||
Net Income | $ | 63,642 | $ | 61,706 | ||||
Available for sale (“AFS”) securities: | ||||||||
Change in net unrealized gain on AFS securities arising during the period | 22,238 | (22,017 | ) | |||||
Related income tax effect | (5,182 | ) | 5,130 | |||||
Net reclassification adjustment for losses (gains) included in net income | (348 | ) | 149 | |||||
|
|
|
| |||||
Related income tax (benefit) expense | 81 | (35 | ) | |||||
|
|
|
| |||||
16,789 | (16,773 | ) | ||||||
|
|
|
| |||||
Net effect of AFS securities on other comprehensive income | 16,789 | (16,773 | ) |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net Income | $ | 65,965 | $ | 64,412 | $ | 196,814 | $ | 192,392 | ||||||||
Available for sale (“AFS”) securities: | ||||||||||||||||
AFS securities with OTTI charges during the period | (272 | ) | 0 | (347 | ) | 0 | ||||||||||
Related income tax effect | 64 | 0 | 81 | 0 | ||||||||||||
Less: OTTI charges recognized in net income | 9 | 0 | 84 | 0 | ||||||||||||
Related income tax benefit | (3 | ) | 0 | (20 | ) | 0 | ||||||||||
Reclassification of previous noncredit OTTI to credit OTTI | 0 | 0 | 2,188 | 0 | ||||||||||||
Related income tax benefit | (0 | ) | 0 | (510 | ) | 0 | ||||||||||
Net unrealized (losses) gains on AFS securities with OTTI | (202 | ) | 0 | 1,476 | 0 | |||||||||||
AFS securities – all other: | ||||||||||||||||
Change in net unrealized gain on AFS securities arising during the period | 5,070 | (9,995 | ) | 48,014 | (42,696 | ) | ||||||||||
Related income tax effect | (1,181 | ) | 2,329 | (11,187 | ) | 11,621 | ||||||||||
Net reclassification adjustment for (gains) losses included in net income | (66 | ) | 114 | 152 | 290 | |||||||||||
Related income tax expense (benefit) | 16 | (27 | ) | (35 | ) | (68 | ) | |||||||||
3,839 | (7,579 | ) | 36,944 | (30,853 | ) | |||||||||||
Net effect of AFS securities on other comprehensive income | 3,637 | (7,579 | ) | 38,420 | (30,853 | ) | ||||||||||
Held to maturity (“HTM”) securities: | ||||||||||||||||
Accretion on the unrealized loss for securities transferred from AFS to the HTM portfolio prior to call or maturity | 0 | 2 | 0 | 6 | ||||||||||||
Related income tax expense | (0 | ) | (0 | ) | (0 | ) | (2 | ) | ||||||||
Net effect of HTM securities on other comprehensive income | 0 | 2 | 0 | 4 | ||||||||||||
Pension plan: | ||||||||||||||||
Recognized net actuarial loss | 1,198 | 1,174 | 3,553 | 3,485 | ||||||||||||
Related income tax benefit | (249 | ) | (256 | ) | (785 | ) | (782 | ) | ||||||||
Net effect of change in pension plan asset on other comprehensive income | 949 | 918 | 2,768 | 2,703 | ||||||||||||
Total change in other comprehensive income | 4,586 | (6,659 | ) | 41,188 | (28,146 | ) | ||||||||||
Total Comprehensive Income | $ | 70,551 | $ | 57,753 | $ | 238,002 | $ | 164,246 | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2019 | 2018 | |||||||
Held to maturity (“HTM”) securities: | ||||||||
Accretion on the unrealized loss for securities transferred from AFS to the HTM investment portfolio prior to call or maturity | 0 | 2 | ||||||
Related income tax expense | 0 | (1 | ) | |||||
|
|
|
| |||||
Net effect of HTM securities on other comprehensive income | 0 | 1 | ||||||
Pension plan: | ||||||||
Recognized net actuarial loss | 1,171 | 1,149 | ||||||
Related income tax benefit | (261 | ) | (416 | ) | ||||
|
|
|
| |||||
Net effect of change in pension plan asset on other comprehensive income | 910 | 733 | ||||||
|
|
|
| |||||
Total change in other comprehensive income | 17,699 | (16,039 | ) | |||||
|
|
|
| |||||
Total Comprehensive Income | $ | 81,341 | $ | 45,667 | ||||
|
|
|
|
Changes in Accumulated Other Comprehensive Income (AOCI) by Component (a) | ||||||||||||||||
For the |
Unrealized Gains/Losses on AFS Securities | Accretion on the unrealized loss for securities transferred from AFS to the HTM | Defined Benefit Pension Items | Total | |||||||||||||
Balance at January 1, 2019 | ($ | 18,289 | ) | ($ | 50 | ) | ($ | 38,680 | ) | ($ | 57,019 | ) | ||||
Reclass due to adopting Accounting Standard Update2017-12 | 50 | 50 | ||||||||||||||
Other comprehensive income before reclassification | 17,056 | 0 | 0 | 17,056 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | (267 | ) | 0 | 910 | 643 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net current-period other comprehensive income, net of tax | 16,789 | 0 | 910 | 17,699 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Balance at March 31, 2019 | ($ | 1,500 | ) | $ | 0 | ($ | 37,770 | ) | ($ | 39,270 | ) | |||||
|
|
|
|
|
|
|
|
Unrealized Gains/Losses on AFS Securities | Accretion on the unrealized loss for securities transferred from AFS to the HTM | Defined Benefit Pension Items | Total | |||||||||||||
Balance at January 1, 2019 | $ | (18,289 | ) | $ | (50 | ) | $ | (38,680 | ) | $ | (57,019 | ) | ||||
Reclass due to adopting Accounting Standard Update 2017-12 | 0 | 50 | 0 | 50 | ||||||||||||
Other comprehensive income before reclassification | 36,625 | 0 | 0 | 36,625 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | 1,795 | 0 | 2,768 | 4,563 | ||||||||||||
Net current-period other comprehensive income, net of tax | 38,420 | 0 | 2,768 | 41,188 | ||||||||||||
Balance at September 30, 2019 | $ | 20,131 | $ | 0 | $ | (35,912 | ) | $ | (15,781 | ) | ||||||
(a) | All amounts are |
Reclassifications out of Accumulated Other Comprehensive Income (AOCI) | ||||||||||||
For the |
Details about AOCI Components | Amount Reclassified from AOCI | Affected Line Item in the Statement Where Net Income is Presented | ||||
Available for sale (“AFS”) securities: | ||||||
Reclassification of previous noncredit OTTI to credit OTTI | $ | 0 | Net investment securities (losses) gains | |||
Net reclassification adjustment for losses (gains) included in net income | (348 | ) | Net investment securities (losses) gains | |||
|
| |||||
(348 | ) | Total before tax | ||||
Related income tax effect | 81 | Tax expense | ||||
|
| |||||
(267 | ) | Net of tax |
Details about AOCI Components | Amount Reclassified from AOCI | Affected Line Item in the Statement Where Net Income is Presented | ||||
Pension plan: | ||||||
Recognized net actuarial loss | 1,171 | (a) | ||||
|
| |||||
1,171 | Total before tax | |||||
Related income tax effect | (261 | ) | Tax expense | |||
|
| |||||
910 | Net of tax | |||||
|
| |||||
Total reclassifications for the period | $ | 643 | ||||
|
|
Details about AOCI Components | Amount Reclassified from AOCI | Affected Line Item in the Statement Where Net Income is Presented | ||||
Available for sale (“AFS”) securities: | ||||||
Reclassification of previous noncredit OTTI to credit OTTI | $ | 2,188 | Net investment securities (losses) gains | |||
Net reclassification adjustment for losses (gains) included in net income | 152 | Net investment securities (losses) gains | ||||
2,340 | Total before tax | |||||
Related income tax effect | (545 | ) | Tax expense | |||
1,795 | Net of tax | |||||
Pension plan: | ||||||
Recognized net actuarial loss | 3,553 | (a) | ||||
3,553 | Total before tax | |||||
Related income tax effect | (785 | ) | Tax expense | |||
2,768 | Net of tax | |||||
Total reclassifications for the period | $ | 4,563 | ||||
(a) | This AOCI component is included in the |
Three Months Ended | ||||||||
March 31 | ||||||||
2019 | 2018 | |||||||
Distributed earnings allocated to common stock | $ | 34,672 | $ | 35,679 | ||||
Undistributed earnings allocated to common stock | 28,830 | 25,919 | ||||||
|
|
|
| |||||
Net earnings allocated to common shareholders | $ | 63,502 | $ | 61,598 | ||||
|
|
|
| |||||
Average common shares outstanding | 101,894,786 | 104,859,427 | ||||||
Common stock equivalents | 267,918 | 303,431 | ||||||
|
|
|
| |||||
Average diluted shares outstanding | 102,162,704 | 105,162,858 | ||||||
|
|
|
| |||||
Earnings per basic common share | $ | 0.62 | $ | 0.59 | ||||
Earnings per diluted common share | $ | 0.62 | $ | 0.59 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Distributed earnings allocated to common stock | $ | 34,434 | $ | 35,234 | $ | 103,711 | $ | 106,429 | ||||||||
Undistributed earnings allocated to common stock | 31,378 | 29,060 | 92,654 | 85,617 | ||||||||||||
Net earnings allocated to common shareholders | $ | 65,812 | $ | 64,294 | $ | 196,365 | $ | 192,046 | ||||||||
Average common shares outstanding | 101,432,243 | 103,617,590 | 101,698,530 | 104,382,094 | ||||||||||||
Equivalents from stock options | 279,497 | 316,369 | 268,605 | 297,782 | ||||||||||||
Average diluted shares outstanding | 101,711,740 | 103,933,959 | 101,967,135 | 104,679,876 | ||||||||||||
Earnings per basic common share | $ | 0.65 | $ | 0.62 | $ | 1.93 | $ | 1.84 | ||||||||
Earnings per diluted common share | $ | 0.65 | $ | 0.62 | $ | 1.93 | $ | 1.83 |
Description | Issuance Date | Amount of Capital Securities Issued | Interest Rate | Maturity Date | ||||||
United Statutory Trust III | December 17, 2003 | $ | 20,000 | 3-month LIBOR + 2.85% | December 17, 2033 | |||||
United Statutory Trust IV | December 19, 2003 | $ | 25,000 | 3-month LIBOR + 2.85% | January 23, 2034 | |||||
United Statutory Trust V | July 12, 2007 | $ | 50,000 | 3-month LIBOR + 1.55% | October 1, 2037 | |||||
United Statutory Trust VI | September 20, 2007 | $ | 30,000 | 3-month LIBOR + 1.30% | December 15, 2037 | |||||
Premier Statutory Trust II | September 25, 2003 | $ | 6,000 | 3-month LIBOR + 3.10% | October 8, 2033 | |||||
Premier Statutory Trust III | May 16, 2005 | $ | 8,000 | 3-month LIBOR + 1.74% | June 15, 2035 | |||||
Premier Statutory Trust IV | June 20, 2006 | $ | 14,000 | 3-month LIBOR + 1.55% | September 23, 2036 | |||||
Premier Statutory Trust V | December 14, 2006 | $ | 10,000 | 3-month LIBOR + 1.61% | March 1, 2037 | |||||
Centra Statutory Trust I | September 20, 2004 | $ | 10,000 | 3-month LIBOR + 2.29% | September 20, 2034 | |||||
Centra Statutory Trust II | June 15, 2006 | $ | 10,000 | 3-month LIBOR + 1.65% | July 7, 2036 | |||||
Virginia Commerce Trust II | December 19, 2002 | $ | 15,000 | 6-month LIBOR + 3.30% | December 19, 2032 | |||||
Virginia Commerce Trust III | December 20, 2005 | $ | 25,000 | 3-month LIBOR + 1.42% | February 23, 2036 | |||||
Cardinal Statutory Trust I | July 27, 2004 | $ | 20,000 | 3-month LIBOR + 2.40% | September 15, 2034 | |||||
UFBC Capital Trust I | December 30, 2004 | $ | 5,000 | 3-month LIBOR + 2.10% | March 15, 2035 |
Description | Issuance Date | Amount of Capital Securities Issued | Interest Rate | Maturity Date | ||||||
United Statutory Trust III | December 17, 2003 | $ | 3-month LIBOR + 2.85% | December 17, 2033 | ||||||
United Statutory Trust IV | December 19, 2003 | $ | 25,000 | 3-month LIBOR + 2.85% | January 23, 2034 | |||||
United Statutory Trust V | July 12, 2007 | $ | 50,000 | 3-month LIBOR + 1.55% | October 1, 2037 | |||||
United Statutory Trust VI | September 20, 2007 | $ | 30,000 | 3-month LIBOR + 1.30% | December 15, 2037 | |||||
Premier Statutory Trust II | September 25, 2003 | $ | 6,000 | 3-month LIBOR + 3.10% | October 8, 2033 | |||||
Premier Statutory Trust III | May 16, 2005 | $ | 8,000 | 3-month LIBOR + 1.74% | June 15, 2035 | |||||
Premier Statutory Trust IV | June 20, 2006 | $ | 14,000 | 3-month LIBOR + 1.55% | September 23, 2036 | |||||
Premier Statutory Trust V | December 14, 2006 | $ | 10,000 | 3-month LIBOR + 1.61% | March 1, 2037 | |||||
Centra Statutory Trust I | September 20, 2004 | $ | 10,000 | 3-month LIBOR + 2.29% | September 20, 2034 | |||||
Centra Statutory Trust II | June 15, 2006 | $ | 10,000 | 3-month LIBOR + 1.65% | July 7, 2036 | |||||
Virginia Commerce Trust II | December 19, 2002 | $ | 15,000 | 6-month LIBOR + 3.30% | December 19, 2032 | |||||
Virginia Commerce Trust III | December 20, 2005 | $ | 25,000 | 3-month LIBOR + 1.42% | February 23, 2036 | |||||
Cardinal Statutory Trust I | July 27, 2004 | $ | 20,000 | 3-month LIBOR + 2.40% | September 15, 2034 | |||||
UFBC Capital Trust I | December 30, 2004 | $ | 5,000 | 3-month LIBOR + 2.10% | March 15, 2035 |
As of March 31, 2019 | As of December 31, 2018 | |||||||||||||||||||||||
Aggregate Assets | Aggregate Liabilities | Risk Of Loss(1) | Aggregate Assets | Aggregate Liabilities | Risk Of Loss(1) | |||||||||||||||||||
Trust preferred securities | $ | 258,095 | $ | 249,016 | $ | 9,079 | $ | 257,754 | $ | 248,741 | $ | 9,013 | ||||||||||||
(1) Represents investment in VIEs. |
|
As of September 30, 2019 | As of December 31, 2018 | |||||||||||||||||||||||
Aggregate Assets | Aggregate Liabilities | Risk Of Loss (1) | Aggregate Assets | Aggregate Liabilities | Risk Of Loss (1) | |||||||||||||||||||
Trust preferred securities | $ | 258,123 | $ | 248,918 | $ | 9,205 | $ | 257,754 | $ | 248,741 | $ | 9,013 |
(1) | Represents investment in VIEs. |
provides customers with several choices of deposit products including demand deposit accounts, savings accounts and certificates of deposit as well as investment and financial advisory services to businesses and individuals, including financial planning, retirement/estate planning, and investment management. The mortgage banking segment engages primarily in the origination and acquisition of residential mortgages for sale into the secondary market though George Mason.
At and For the Three Months Ended March 31, 2019 | ||||||||||||||||||||
Community Banking | Mortgage Banking | Other | Intersegment Eliminations | Consolidated | ||||||||||||||||
Net interest income | $ | 145,890 | $ | 55 | $ | (3,323 | ) | $ | 1,546 | $ | 144,168 | |||||||||
Provision for loans losses | 4,996 | 0 | 0 | 0 | 4,996 | |||||||||||||||
Other income | 18,689 | 16,106 | 201 | (3,773 | ) | 31,223 | ||||||||||||||
Other expense | 75,994 | 14,842 | (220 | ) | (1,191 | ) | 89,425 | |||||||||||||
Income taxes | 17,666 | 282 | (620 | ) | 0 | 17,328 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net income (loss) | $ | 65,923 | $ | 1,037 | $ | (2,282 | ) | $ | (1,036 | ) | $ | 63,642 | ||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets (liabilities) | $ | 19,549,904 | $ | 316,106 | $ | 6,170 | $ | (227,047 | ) | $ | 19,645,133 | |||||||||
Average assets (liabilities) | 19,204,107 | 265,151 | (1,848 | ) | (217,790 | ) | 19,249,620 | |||||||||||||
At and For the Three Months Ended March 31, 2018 | ||||||||||||||||||||
Community Banking | Mortgage Banking | Other | Intersegment Eliminations | Consolidated | ||||||||||||||||
Net interest income | $ | 145,621 | $ | 376 | $ | (2,594 | ) | $ | 640 | $ | 144,043 | |||||||||
Provision for loans losses | 5,178 | 0 | 0 | 0 | 5,178 | |||||||||||||||
Other income | 17,771 | 14,883 | (822 | ) | (640 | ) | 31,192 | |||||||||||||
Other expense | 72,491 | 18,384 | (423 | ) | 0 | 90,452 | ||||||||||||||
Income taxes | 19,276 | (703 | ) | (674 | ) | 0 | 17,899 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net income (loss) | $ | 66,447 | $ | (2,422 | ) | $ | (2,319 | ) | $ | 0 | $ | 61,706 | ||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets (liabilities) | $ | 18,547,315 | $ | 289,925 | $ | 9,831 | $ | (227,369 | ) | $ | 18,619,702 | |||||||||
Average assets (liabilities) | 18,507,313 | 210,172 | 15,012 | (188,700 | ) | 18,543,797 |
At and For the Three Months Ended September 30, 2019 | ||||||||||||||||||||
Community Banking | Mortgage Banking | Other | Intersegment Eliminations | Consolidated | ||||||||||||||||
Net interest income | $ | 143,615 | $ | 203 | $ | (3,052 | ) | $ | 1,152 | $ | 141,918 | |||||||||
Provision for loans losses | 5,033 | 0 | 0 | 0 | 5,033 | |||||||||||||||
Other income | 18,696 | 24,331 | 87 | (890 | ) | 42,224 | ||||||||||||||
Other expense | 77,312 | 20,256 | (1,696 | ) | 262 | 96,134 | ||||||||||||||
Income taxes | 16,393 | 877 | (260 | ) | 0 | 17,010 | ||||||||||||||
Net income (loss) | $ | 63,573 | $ | 3,401 | $ | (1,009 | ) | $ | 0 | $ | 65,965 | |||||||||
Total assets (liabilities) | $ | 19,593,009 | $ | 491,832 | $ | 17,120 | $ | (350,500 | ) | $ | 19,751,461 | |||||||||
Average assets (liabilities) | 19,579,180 | 398,880 | 16,925 | (328,377 | ) | 19,666,608 | ||||||||||||||
At and For the Three Months Ended September 30, 2018 | ||||||||||||||||||||
Community Banking | Mortgage Banking | Other | Intersegment Eliminations | Consolidated | ||||||||||||||||
Net interest income | $ | 149,770 | $ | 388 | $ | (3,168 | ) | $ | 1,785 | $ | 148,775 | |||||||||
Provision for loans losses | 4,808 | 0 | 0 | 0 | 4,808 | |||||||||||||||
Other income | 18,717 | 16,478 | 58 | (3,567 | ) | 31,686 | ||||||||||||||
Other expense | 75,255 | 17,957 | 1,885 | (1,782 | ) | 93,315 | ||||||||||||||
Income taxes | 19,296 | (246 | ) | (1,124 | ) | 0 | 17,926 | |||||||||||||
Net income (loss) | $ | 69,128 | $ | (845 | ) | $ | (3,871 | ) | $ | 0 | $ | 64,412 | ||||||||
Total assets (liabilities) | $ | 19,080,734 | $ | 288,638 | $ | 12,545 | $ | (194,274 | ) | $ | 19,187,643 | |||||||||
Average assets (liabilities) | 18,982,530 | 303,556 | 5,468 | (243,867 | ) | 19,047,689 |
At and For the Nine Months Ended September 30, 2019 | ||||||||||||||||||||
Community Banking | Mortgage Banking | Other | Intersegment Eliminations | Consolidated | ||||||||||||||||
Net interest income | $ | 442,022 | $ | 369 | $ | (9,584 | ) | $ | 3,832 | $ | 436,639 | |||||||||
Provision for loans losses | 15,446 | 0 | 0 | 0 | 15,446 | |||||||||||||||
Other income | 54,746 | 63,938 | 342 | (5,784 | ) | 113,242 | ||||||||||||||
Other expense | 235,610 | 53,869 | (1,773 | ) | (1,952 | ) | 285,754 | |||||||||||||
Income taxes | 51,266 | 2,163 | (1,562 | ) | 0 | 51,867 | ||||||||||||||
Net income (loss) | $ | 194,446 | $ | 8,275 | $ | (5,907 | ) | $ | 0 | $ | 196,814 | |||||||||
Total assets (liabilities) | $ | 19,593,009 | $ | 491,832 | $ | 17,120 | $ | (350,500 | ) | $ | 19,751,461 | |||||||||
Average assets (liabilities) | 19,410,636 | 330,668 | 6,926 | (269,306 | ) | 19,478,924 | ||||||||||||||
At and For the Nine Months Ended September 30, 2018 | ||||||||||||||||||||
Community Banking | Mortgage Banking | Other | Intersegment Eliminations | Consolidated | ||||||||||||||||
Net interest income | $ | 444,840 | $ | 1,028 | $ | (8,794 | ) | $ | 4,866 | $ | 441,940 | |||||||||
Provision for loans losses | 16,190 | 0 | 0 | 0 | 16,190 | |||||||||||||||
Other income | 53,952 | 54,829 | (696 | ) | (9,200 | ) | 98,885 | |||||||||||||
Other expense | 224,240 | 57,566 | (295 | ) | (4,334 | ) | 277,177 | |||||||||||||
Income taxes | 57,519 | (385 | ) | (2,068 | ) | 0 | 55,066 | |||||||||||||
Net income (loss) | $ | 200,843 | $ | (1,324 | ) | $ | ) | $ | 0 | $ | 192,392 | |||||||||
Total assets (liabilities) | $ | 19,080,734 | $ | 288,638 | $ | 12,545 | $ | (194,274 | ) | $ | 19,187,643 | |||||||||
Average assets (liabilities) | 18,718,295 | 284,100 | 8,043 | (240,505 | ) | 18,769,934 |
Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
March 31,September 30, 2019, but prior to the date these financial statements were issued, for potential recognition or disclosure required in these financial statements.
Where the
March 31 | December 31 | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | $ Change | % Change | ||||||||||||
U.S. Treasury securities and obligations of U.S. | $ | 73,544 | $ | 85,890 | $ | (12,346 | ) | (14.37 | %) | |||||||
State and political subdivisions | 194,812 | 208,988 | (14,176 | ) | (6.78 | %) | ||||||||||
Mortgage-backed securities | 1,553,961 | 1,594,509 | (40,548 | ) | (2.54 | %) | ||||||||||
Asset-backed securities | 270,677 | 271,970 | (1,293 | ) | (0.48 | %) | ||||||||||
Trust preferred collateralized debt obligations | 6,017 | 5,917 | 100 | 1.69 | % | |||||||||||
Single issue trust preferred securities | 16,841 | 8,362 | 8,479 | 101.40 | % | |||||||||||
Corporate securities | 268,203 | 161,403 | 106,800 | 66.17 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total available for sale securities, at fair value | $ | 2,384,055 | $ | 2,337,039 | $ | 47,016 | 2.01 | % | ||||||||
|
|
|
|
|
|
|
|
The following table summarizes the changes in the held to maturity securities sinceyear-end 2018:
March 31 | December 31 | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | $ Change | % Change | ||||||||||||
U.S. Treasury securities and obligations of U.S. | $ | 5,045 | $ | 5,074 | $ | (29 | ) | (0.57 | %) | |||||||
State and political subdivisions | 3,426 | 5,473 | (2,047 | ) | (37.40 | %) | ||||||||||
Mortgage-backed securities | 0 | 20 | (20 | ) | (100.00 | %) | ||||||||||
Single issue trust preferred securities | 0 | 9,412 | (9,412 | ) | (100.00 | %) | ||||||||||
Other corporate securities | 20 | 20 | 0 | 0.00 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total held to maturity securities, at amortized cost | $ | 8,491 | $ | 19,999 | $ | (11,508 | ) | (57.54 | %) | |||||||
|
|
|
|
|
|
|
|
September 30 | December 31 | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | $ Change | % Change | ||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 64,034 | $ | 85,890 | $ | (21,856 | ) | (25.45 | %) | |||||||
State and political subdivisions | 238,515 | 208,988 | 29,527 | 14.13 | % | |||||||||||
Mortgage-backed securities | 1,492,928 | 1,594,509 | (101,581 | ) | (6.37 | %) | ||||||||||
Asset-backed securities | 279,707 | 271,970 | 7,737 | 2.84 | % | |||||||||||
Trust preferred collateralized debt obligations | 5,069 | 5,917 | (848 | ) | (14.33 | %) | ||||||||||
Single issue trust preferred securities | 16,544 | 8,362 | 8,182 | 97.85 | % | |||||||||||
Corporate securities | 355,300 | 161,403 | 193,897 | 120.13 | % | |||||||||||
Total available for sale securities, at fair value | $ | 2,452,097 | $ | 2,337,039 | $ | 115,058 | 4.92 | % | ||||||||
The following table summarizes the changes in the held to maturity securities since year-end 2018: | ||||||||||||||||
September 30 | December 31 | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | $ Change | % Change | ||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 25 | $ | 5,074 | $ | (5,049 | ) | (99.51 | %) | |||||||
State and political subdivisions | 1,426 | 5,473 | (4,047 | ) | (73.94 | %) | ||||||||||
Mortgage-backed securities | 0 | 20 | (20 | ) | (100.00 | %) | ||||||||||
Single issue trust preferred securities | 0 | 9,412 | (9,412 | ) | (100.00 | %) | ||||||||||
Other corporate securities | 20 | 20 | 0 | 0.00 | % | |||||||||||
Total held to maturity securities, at amortized cost | $ | 1,471 | $ | 19,999 | $ | (18,528 | ) | (92.64 | %) | |||||||
The single issue trust preferred securities and the trust preferred collateralized debt obligations relate mainly to securities of financial institutions.
33.10% were split rated; $2.31 million or 13.73%13.98% were below investment grade; and $5.16$4.80 million or 30.64%29.01% were unrated. The two largest exposures accounted for 72.04%71.25% of the $16.84$16.54 million. These included SunTrust Bank at $6.97$6.99 million and Emigrant Bank at $5.16$4.80 million. All single-issue trust preferred securities are currently receiving full scheduled principal and interest payments.
Security | Moodys | S&P | Fitch | Amortized Cost | Fair Value | Unrealized Loss/ (Gain) | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Emigrant Bank | NR | NR | WD | $ | 5,727 | $ | 5,160 | $ | 567 | |||||||||||||||
SunTrust Bank | Baa2 | NR | BB+ | 4,957 | 4,659 | 298 | ||||||||||||||||||
M&T Bank | NR | BBB- | BBB- | 3,033 | 3,207 | (174 | ) | |||||||||||||||||
SunTrust Bank | NR | BB+ | BB+ | 2,479 | 2,313 | 166 | ||||||||||||||||||
HSBC | Baa2 | BBB+ | NR | 1,000 | 716 | 284 | ||||||||||||||||||
Royal Bank of Scotland | Baa3 | BB | BBB | 977 | 786 | 191 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
$ | 18,173 | $ | 16,841 | $ | 1,332 | |||||||||||||||||||
|
|
|
|
|
|
Security | Moodys | S&P | Fitch | Amortized Cost | Fair Value | Unrealized Loss/ (Gain) | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Emigrant Bank | NR | NR | WD | $ | 5,732 | $ | 4,800 | $ | 932 | |||||||||||||||
SunTrust Bank | Baa2 | NR | BB+ | 4,959 | 4,675 | 284 | ||||||||||||||||||
M&T Bank | NR | BBB- | BBB- | 3,040 | 3,212 | (172 | ) | |||||||||||||||||
SunTrust Bank | NR | BB+ | BB+ | 2,480 | 2,313 | 167 | ||||||||||||||||||
HSBC | Baa2 | BBB+ | NR | 1,000 | 743 | 257 | ||||||||||||||||||
Royal Bank of Scotland | Baa3 | BB+ | BBB | 977 | 801 | 176 | ||||||||||||||||||
$ | 18,188 | $ | 16,544 | $ | 1,644 | |||||||||||||||||||
March 31 | December 31 | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | $ Change | % Change | ||||||||||||
Loans held for sale | $ | 245,763 | $ | 249,846 | $ | (4,083 | ) | (1.63 | %) | |||||||
|
|
|
|
|
|
|
| |||||||||
Commercial, financial, and agricultural: | ||||||||||||||||
Owner-occupied commercial real estate | $ | 1,275,340 | $ | 1,291,790 | $ | (16,450 | ) | (1.27 | %) | |||||||
Nonowner-occupied commercial real estate | 4,266,613 | 4,303,613 | (37,000 | ) | (0.86 | %) | ||||||||||
Other commercial loans | 1,996,482 | 1,957,641 | 38,841 | 1.98 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total commercial, financial, and agricultural | $ | 7,538,435 | $ | 7,553,044 | $ | (14,609 | ) | (0.19 | %) | |||||||
Residential real estate | 3,550,037 | 3,501,393 | 48,644 | 1.39 | % | |||||||||||
Construction & land development | 1,487,453 | 1,410,468 | 76,985 | 5.46 | % | |||||||||||
Consumer: | ||||||||||||||||
Bankcard | 9,247 | 10,203 | (956 | ) | (9.37 | %) | ||||||||||
Other consumer | 993,046 | 954,424 | 38,622 | 4.05 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total gross loans | $ | 13,578,218 | $ | 13,429,532 | $ | 148,686 | 1.11 | % | ||||||||
Less: Unearned income | (5,515 | ) | (7,310 | ) | 1,795 | 24.56 | % | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total Loans, net of unearned income | $ | 13,572,703 | $ | 13,422,222 | $ | 150,481 | 1.12 | % | ||||||||
|
|
|
|
|
|
|
|
September 30 | December 31 | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | $ Change | % Change | ||||||||||||
Loans held for sale | $ | 412,194 | $ | 249,846 | $ | 162,348 | 64.98 | % | ||||||||
Commercial, financial, and agricultural: | ||||||||||||||||
Owner-occupied commercial real estate | $ | 1,221,647 | $ | 1,291,790 | $ | (70,143 | ) | (5.43 | %) | |||||||
Nonowner-occupied commercial real estate | 4,241,682 | 4,303,613 | (61,931 | ) | (1.44 | %) | ||||||||||
Other commercial loans | 2,107,865 | 1,957,641 | �� | 150,224 | 7.67 | % | ||||||||||
Total commercial, financial, and agricultural | $ | 7,571,194 | $ | 7,553,044 | $ | 18,150 | 0.24 | % | ||||||||
Residential real estate | 3,644,568 | 3,501,393 | 143,175 | 4.09 | % | |||||||||||
Construction & land development | 1,300,881 | 1,410,468 | (109,587 | ) | (7.77 | %) | ||||||||||
Consumer: | ||||||||||||||||
Bankcard | 9,532 | 10,203 | (671 | ) | (6.58 | %) | ||||||||||
Other consumer | 1,111,063 | 954,424 | 156,639 | 16.41 | % | |||||||||||
Total gross loans | $ | 13,637,238 | $ | 13,429,532 | $ | 207,706 | 1.55 | % | ||||||||
Less: Unearned income | (3,811 | ) | (7,310 | ) | 3,499 | (47.87 | %) | |||||||||
Total Loans, net of unearned income | $ | 13,633,427 | $ | 13,422,222 | $ | 211,205 | 1.57 | % | ||||||||
March 31, 2019 | ||||||||||||||||||||
(In thousands) | Commercial, financial and agricultural | Residential real estate | Construction & land development | Consumer | Total | |||||||||||||||
Originated | $ | 5,031,077 | $ | 2,774,338 | $ | 1,276,858 | $ | 997,260 | $ | 10,079,532 | ||||||||||
Acquired | 2,507,358 | 775,700 | 210,595 | 5,033 | 3,498,686 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total gross loans | $ | 7,538,435 | $ | 3,550,038 | $ | 1,487,453 | $ | 1,002,293 | $ | 13,578,218 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
December 31, 2018 | ||||||||||||||||||||
(In thousands) | Commercial, financial and agricultural | Residential real estate | Construction & land development | Consumer | Total | |||||||||||||||
Originated | $ | 4,887,688 | $ | 2,686,817 | $ | 1,179,676 | $ | 959,392 | $ | 9,713,573 | ||||||||||
Acquired | 2,665,356 | 814,576 | 230,792 | 5,235 | 3,715,959 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total gross loans | $ | 7,553,044 | $ | 3,501,393 | $ | 1,410,468 | $ | 964,627 | $ | 13,429,532 | ||||||||||
|
|
|
|
|
|
|
|
|
|
September 30, 2019 | ||||||||||||||||||||
(In thousands) | Commercial, financial and agricultural | Residential real estate | Construction & land development | Consumer | Total | |||||||||||||||
Originated | $ | 5,306,132 | $ | 2,952,405 | $ | 1,154,930 | $ | 1,116,488 | $ | 10,529,955 | ||||||||||
Acquired | 2,265,062 | 692,163 | 145,951 | 4,107 | 3,107,283 | |||||||||||||||
Total gross loans | $ | 7,571,194 | $ | 3,644,568 | $ | 1,300,881 | $ | 1,120,595 | $ | 13,637,238 | ||||||||||
December 31, 2018 | ||||||||||||||||||||
(In thousands) | Commercial, financial and agricultural | Residential real estate | Construction & land development | Consumer | Total | |||||||||||||||
Originated | $ | 4,887,688 | $ | 2,686,817 | $ | 1,179,676 | $ | 959,392 | $ | 9,713,573 | ||||||||||
Acquired | 2,665,356 | 814,576 | 230,792 | 5,235 | 3,715,959 | |||||||||||||||
Total gross loans | $ | 7,553,044 | $ | 3,501,393 | $ | 1,410,468 | $ | 964,627 | $ | 13,429,532 | ||||||||||
21.62%. In addition, in process items increased $43.17 million.
balances and a $12.54 million increase in fixed CDs under $100,000.
March 31 | December 31 | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | $ Change | % Change | ||||||||||||
Demand deposits | $ | 3,171,556 | $ | 3,212,878 | $ | (41,322 | ) | (1.29 | %) | |||||||
Interest-bearing checking | 372,892 | 374,495 | (1,603 | ) | (0.43 | %) | ||||||||||
Regular savings | 1,003,942 | 954,961 | 48,981 | 5.13 | % | |||||||||||
Money market accounts | 7,177,385 | 7,157,028 | 20,357 | 0.28 | % | |||||||||||
Time deposits under $100,000 | 714,669 | 712,313 | 2,356 | 0.33 | % | |||||||||||
Time deposits over $100,000(1) | 1,718,953 | 1,583,074 | 135,879 | 8.58 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total deposits | $ | 14,159,397 | $ | 13,994,749 | $ | 164,648 | 1.18 | % | ||||||||
|
|
|
|
|
|
|
|
September 30 | December 31 | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | $ Change | % Change | ||||||||||||
Demand deposits | $ | 3,282,679 | $ | 3,212,878 | $ | 69,801 | 2.17 | % | ||||||||
Interest-bearing checking | 359,100 | 374,495 | (15,395 | ) | -4.11 | % | ||||||||||
Regular savings | 877,630 | 954,961 | (77,331 | ) | -8.10 | % | ||||||||||
Money market accounts | 7,037,300 | 7,157,028 | (119,728 | ) | -1.67 | % | ||||||||||
Time deposits under $100,000 | 730,118 | 712,313 | 17,805 | 2.50 | % | |||||||||||
Time deposits over $100,000 (1) | 1,808,584 | 1,583,074 | 225,510 | 14.25 | % | |||||||||||
Total deposits | $ | 14,095,411 | $ | 13,994,749 | $ | 100,662 | 0.72 | % | ||||||||
(1) | Includes time deposits of $250,000 or more of |
advances as new borrowings exceeded repayments for the first nine months of 2019.
March 31 | December 31 | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | $ Change | % Change | ||||||||||||
Federal funds purchased | $ | 0 | $ | 23,400 | $ | (23,400 | ) | (100.00 | %) | |||||||
Short-term securities sold under agreements to repurchase | 127,821 | 152,927 | (25,106 | ) | (16.42 | %) | ||||||||||
Short-term FHLB advances | 0 | 175,000 | (175,000 | ) | (100.00 | %) | ||||||||||
Long-term FHLB advances | 1,603,615 | 1,264,198 | 339,417 | 26.85 | % | |||||||||||
Issuances of trust preferred capital securities | 235,220 | 234,905 | 315 | 0.13 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total borrowings | $ | 1,966,656 | $ | 1,850,430 | $ | 116,226 | 6.28 | % | ||||||||
| �� |
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|
|
September 30 | December 31 | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | $ Change | % Change | ||||||||||||
Federal funds purchased | $ | 0 | $ | 23,400 | $ | (23,400 | ) | -100.00 | % | |||||||
Short-term securities sold under agreements to repurchase | 129,966 | 152,927 | (22,961 | ) | -15.01 | % | ||||||||||
Short-term FHLB advances | 200,000 | 175,000 | 25,000 | 14.29 | % | |||||||||||
Long-term FHLB advances | 1,472,448 | 1,264,198 | 208,250 | 16.47 | % | |||||||||||
Issuances of trust preferred capital securities | 235,849 | 234,905 | 944 | 0.40 | % | |||||||||||
Total borrowings | $ | 2,038,263 | $ | 1,850,430 | $ | 187,833 | 10.15 | % | ||||||||
payments.
2019. For the third quarter and first nine months of 2019, United’s annualized return on average tangible equity was 14.16% and 14.56%, respectively, as compared to 14.65% and 14.69% for the third quarter and first nine months of 2018, respectively.
Three Months Ended | Nine Months Ended | |||||||||||||||
(Dollars in thousands) | September 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | ||||||||||||
Return on Average Tangible Equity: | ||||||||||||||||
(a) Net Income (GAAP) | $ | 65,965 | $ | 64,412 | $ | 196,814 | $ | 192,392 | ||||||||
(b) Number of days | 92 | 92 | 273 | 273 | ||||||||||||
Average Total Shareholders’ Equity (GAAP) | $ | 3,359,437 | $ | 3,262,949 | $ | 3,319,420 | $ | 3,270,789 | ||||||||
Less: Average Total Intangibles | (1,510,653 | ) | (1,518,119 | ) | (1,512,394 | ) | (1,520,244 | ) | ||||||||
(c) Average Tangible Equity (non-GAAP) | $ | 1,848,784 | $ | 1,744,830 | $ | 1,807,026 | $ | 1,750,545 | ||||||||
Return on Tangible Equity (non-GAAP) [(a) / (b)] x 365 / (c) | 14.16 | % | 14.65 | % | 14.56 | % | 14.69 | % |
decline in pension expense.
Net interest income for the first nine months of 2019 was $436.64 million, which was a decrease of $5.30 million or 1.20% from the first nine months of 2018. The $5.30 million decrease in net interest income occurred because total interest income increased $48.48 million while total interest expense increased $53.78 million from the first nine months of 2018. On a linked-quarter basis, net interest income for the third quarter of 2019 decreased $8.64 million or 5.74% from the second quarter of 2019. The $8.64 million decrease in net interest income occurred because total interest income decreased $8.89 million while total interest expense only decreased $259 thousand from the second quarter of 2019.
On a linked-quarter basis,
and $63.53 million or 2.56%, respectively, while average short-term investments decreased $93.89 million or 11.27% for the linked-quarter. The average yield on earning assets increased 8 basis points from the fourth quarternine months of 2018 due to higher market interest rates and a change in the mix of interest bearing liabilities. Partially offsetting these decreases to
2019 decreased $8.70 million or 5.74% from the second quarter of 2019 as well due to a decrease in the average yield on earning assets. The average yield on earning assets for the third quarter of 2019 decreased 29 basis points from the second quarter of 2019 due to a decrease of $7.28 million in loan accretion on acquired loans. Loan accretion on acquired loans was $7.17 million and $14.45 million for the third quarter and second quarter of 2019, respectively. Partially offsetting the decline in the average yield on earning assets was a decrease of 2 basis points in the average cost of funds due to change in the mix of interest-bearing liabilities. Average earning assets were relatively flat for the quarter, increasing $158.22 million or less than 1% from the second quarter of 2019 as average net loans were also relatively flat, increasing $63.85 million or less than 1%. Average investment securities increased $34.49 million or 1.32% and average short-term investments increased $59.88 million or 7.77% for the linked quarter. The net interest margin of 3.27% for the third quarter of 2019 decreased 26 basis points from the net interest margin of 3.53% for the second quarter of 2019.
Three Months Ended | ||||||||||||
March 31 | March 31 | December 31 | ||||||||||
(Dollars in thousands) | 2019 | 2018 | 2018 | |||||||||
Loan accretion | $ | 8,544 | $ | 10,766 | $ | 8,816 | ||||||
Certificates of deposit | 198 | 326 | 311 | |||||||||
Long-term borrowings | 268 | 269 | 268 | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 9,010 | $ | 11,361 | $ | 9,395 | ||||||
|
|
|
|
|
|
Three Months Ended | ||||||||||||
September 30 | September 30 | June 30 | ||||||||||
(Dollars in thousands) | 2019 | 2018 | 2019 | |||||||||
Loan accretion | $ | 7,167 | $ | 11,559 | $ | 14,451 | ||||||
Certificates of deposit | 198 | 311 | 197 | |||||||||
Long-term borrowings | 269 | 269 | 269 | |||||||||
Total | $ | 7,634 | $ | 12,139 | $ | 14,917 | ||||||
Nine Months Ended | ||||||||
September 30 | September 30 | |||||||
(Dollars in thousands) | 2019 | 2018 | ||||||
Loan accretion | $ | 30,162 | $ | 34,381 | ||||
Certificates of deposit | 593 | 948 | ||||||
Long-term borrowings | 806 | 806 | ||||||
Tax-equivalent net interest income | $ | 31,561 | $ | 36,135 | ||||
Three Months Ended | ||||||||||||
March 31 | March 31 | December 31 | ||||||||||
(Dollars in thousands) | 2019 | 2018 | 2018 | |||||||||
Net interest income, GAAP basis | $ | 144,168 | $ | 144,043 | $ | 146,705 | ||||||
Tax-equivalent adjustment (1) | 993 | 1,104 | 1,060 | |||||||||
|
|
|
|
|
| |||||||
Tax-equivalent net interest income | $ | 145,161 | $ | 145,147 | $ | 147,765 | ||||||
|
|
|
|
|
|
Three Months Ended | ||||||||||||
September 30 | September 30 | June 30 | ||||||||||
(Dollars in thousands) | 2019 | 2018 | 2019 | |||||||||
Net interest income, GAAP basis | $ | 141,918 | $ | 148,775 | $ | 150,553 | ||||||
Tax-equivalent adjustment (1) | 914 | 1,049 | 977 | |||||||||
Tax-equivalent net interest income | $ | 142,832 | $ | 149,824 | $ | 151,530 | ||||||
Nine Months Ended | ||||||||
September 30 | September 30 | |||||||
(Dollars in thousands) | 2019 | 2018 | ||||||
Net interest income, GAAP basis | $ | 436,639 | $ | 441,940 | ||||
Tax-equivalent adjustment (1) | 2,884 | 3,268 | ||||||
Tax-equivalent net interest income | $ | 439,523 | $ | 445,208 | ||||
(1) | The |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
March 31, 2019 | March 31, 2018 | |||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest (1) | Avg. Rate (1) | Average Balance | Interest (1) | Avg. Rate (1) | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Earning Assets: | ||||||||||||||||||||||||
Federal funds sold and securities purchased under agreements to resell and other short-term investments | $ | 738,930 | $ | 5,837 | 3.20 | % | $ | 979,666 | $ | 4,917 | 2.04 | % | ||||||||||||
Investment Securities: | ||||||||||||||||||||||||
Taxable | 2,382,450 | 17,363 | 2.92 | % | 1,923,339 | 11,875 | 2.47 | % | ||||||||||||||||
Tax-exempt | 166,410 | 1,298 | 3.12 | % | 256,000 | 1,855 | 2.90 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Securities | 2,548,860 | 18,661 | 2.93 | % | 2,179,339 | 13,730 | 2.52 | % | ||||||||||||||||
Loans, net of unearned income (2) | 13,712,278 | 165,592 | 4.89 | % | 13,173,656 | 149,642 | 4.60 | % | ||||||||||||||||
Allowance for loan losses | (76,762 | ) | (76,575 | ) | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net loans | 13,635,516 | 4.91 | % | 13,097,081 | 4.63 | % | ||||||||||||||||||
|
|
|
|
|
| �� |
|
|
|
|
| |||||||||||||
Total earning assets | 16,923,306 | $ | 190,090 | 4.54 | % | 16,256,086 | $ | 168,289 | 4.19 | % | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Other assets | 2,326,314 | 2,287,711 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
TOTAL ASSETS | $ | 19,249,620 | $ | 18,543,797 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Interest-Bearing Funds: | ||||||||||||||||||||||||
Interest-bearing deposits | $ | 9,694,708 | $ | 32,638 | 1.37 | % | $ | 9,353,479 | $ | 15,657 | 0.68 | % | ||||||||||||
Short-term borrowings | 173,597 | 691 | 1.61 | % | 286,350 | 421 | 0.60 | % | ||||||||||||||||
Long-term borrowings | 1,697,423 | 11,600 | 2.77 | % | 1,352,280 | 7,064 | 2.12 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Interest-Bearing Funds | 11,565,728 | 44,929 | 1.58 | % | 10,992,109 | 23,142 | 0.85 | % | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Noninterest-bearing deposits | 4,221,040 | 4,174,169 | ||||||||||||||||||||||
Accrued expenses and other liabilities | 186,030 | 104,486 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
TOTAL LIABILITIES | 15,972,798 | 15,270,764 | ||||||||||||||||||||||
SHAREHOLDERS’ EQUITY | 3,276,822 | 3,273,033 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 19,249,620 | $ | 18,543,797 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
NET INTEREST INCOME | $ | 145,161 | $ | 145,147 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
INTEREST SPREAD | 2.96 | % | 3.34 | % | ||||||||||||||||||||
NET INTEREST MARGIN | 3.46 | % | 3.61 | % |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
September 30, 2019 | September 30, 2018 | |||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest (1) | Avg. Rate (1) | Average Balance | Interest (1) | Avg. Rate (1) | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Earning Assets: | ||||||||||||||||||||||||
Federal funds sold and securities purchased under agreements to resell and other short-term investments | $ | 830,502 | $ | 6,236 | 2.98 | % | $ | 911,414 | $ | 5,485 | 2.39 | % | ||||||||||||
Investment Securities: | ||||||||||||||||||||||||
Taxable | 2,525,682 | 18,168 | 2.88 | % | 2,064,332 | 13,994 | 2.71 | % | ||||||||||||||||
Tax-exempt | 124,141 | 1,011 | 3.26 | % | 220,197 | 1,673 | 3.04 | % | ||||||||||||||||
Total Securities | 2,649,823 | 19,179 | 2.90 | % | 2,284,529 | 15,667 | 2.74 | % | ||||||||||||||||
Loans, net of unearned income (2) | 13,952,287 | 165,850 | 4.72 | % | 13,627,932 | 164,927 | 4.81 | % | ||||||||||||||||
Allowance for loan losses | (76,408 | ) | (77,103 | ) | ||||||||||||||||||||
Net loans | 13,875,879 | 4.75 | % | 13,550,829 | 4.83 | % | ||||||||||||||||||
Total earning assets | 17,356,204 | $ | 191,265 | 4.38 | % | 16,746,772 | $ | 186,079 | 4.42 | % | ||||||||||||||
Other assets | 2,310,404 | 2,300,917 | ||||||||||||||||||||||
TOTAL ASSETS | $ | 19,666,608 | $ | 19,047,689 | ||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Interest-Bearing Funds: | ||||||||||||||||||||||||
Interest-bearing deposits | $ | 9,692,296 | $ | 36,368 | 1.49 | % | $ | 9,588,327 | $ | 26,368 | 1.09 | % | ||||||||||||
Short-term borrowings | 120,155 | 539 | 1.78 | % | 212,566 | 618 | 1.15 | % | ||||||||||||||||
Long-term borrowings | 1,870,944 | 11,526 | 2.44 | % | 1,543,004 | 9,269 | 2.38 | % | ||||||||||||||||
Total Interest-Bearing Funds | 11,683,395 | 48,433 | 1.64 | % | 11,343,897 | 36,255 | 1.27 | % | ||||||||||||||||
Noninterest-bearing deposits | 4,440,399 | 4,338,309 | ||||||||||||||||||||||
Accrued expenses and other liabilities | 183,377 | 102,534 | ||||||||||||||||||||||
TOTAL LIABILITIES | 16,307,171 | 15,784,740 | ||||||||||||||||||||||
SHAREHOLDERS’ EQUITY | 3,359,437 | 3,262,949 | ||||||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 19,666,608 | $ | 19,047,689 | ||||||||||||||||||||
NET INTEREST INCOME | $ | 142,832 | $ | 149,824 | ||||||||||||||||||||
INTEREST SPREAD | 2.74 | % | 3.15 | % | ||||||||||||||||||||
NET INTEREST MARGIN | 3.27 | % | 3.56 | % |
(1) | The interest income and the yields on federally nontaxable loans and investment securities are presented on a |
(2) | Nonaccruing loans are included in the daily average loan amounts outstanding. |
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, 2019 | September 30, 2018 | |||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest (1) | Avg. Rate (1) | Average Balance | Interest (1) | Avg. Rate (1) | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Earning Assets: | ||||||||||||||||||||||||
Federal funds sold and securities repurchased under agreements to resell and other short-term investments | $ | 780,355 | $ | 17,478 | 2.99 | % | $ | 846,537 | $ | 13,867 | 2.19 | % | ||||||||||||
Investment Securities: | ||||||||||||||||||||||||
Taxable | 2,455,085 | 53,279 | 2.89 | % | 2,012,841 | 39,679 | 2.63 | % | ||||||||||||||||
Tax-exempt | 149,956 | 3,527 | 3.14 | % | 239,617 | 5,339 | 2.97 | % | ||||||||||||||||
Total Securities | 2,605,041 | 56,806 | 2.91 | % | 2,252,458 | 45,018 | 2.66 | % | ||||||||||||||||
Loans, net of unearned income (2) | 13,851,974 | 507,293 | 4.89 | % | 13,451,316 | 474,598 | 4.72 | % | ||||||||||||||||
Allowance for loan losses | (76,616 | ) | (76,819 | ) | ||||||||||||||||||||
Net loans | 13,775,358 | 4.92 | % | 13,374,497 | 4.74 | % | ||||||||||||||||||
Total earning assets | 17,160,754 | $ | 581,577 | 4.53 | % | 16,473,492 | $ | 533,483 | 4.33 | % | ||||||||||||||
Other assets | 2,318,170 | 2,296,442 | ||||||||||||||||||||||
TOTAL ASSETS | $ | 19,478,924 | $ | 18,769,934 | ||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Interest-Bearing Funds: | ||||||||||||||||||||||||
Interest-bearing deposits | $ | 9,713,567 | $ | 104,461 | 1.44 | % | $ | 9,384,890 | $ | 61,101 | 0.87 | % | ||||||||||||
Short-term borrowings | 143,132 | 1,838 | 1.72 | % | 235,388 | 1,503 | 0.85 | % | ||||||||||||||||
Long-term borrowings | 1,816,476 | 35,755 | 2.63 | % | 1,518,997 | 25,671 | 2.26 | % | ||||||||||||||||
Total Interest-Bearing Funds | 11,673,175 | 142,054 | 1.63 | % | 11,139,275 | 88,275 | 1.06 | % | ||||||||||||||||
Non-interest bearing deposits | 4,301,300 | 4,256,707 | ||||||||||||||||||||||
Accrued expenses and other liabilities | 185,029 | 103,163 | ||||||||||||||||||||||
TOTAL LIABILITIES | 16,159,504 | 15,499,145 | ||||||||||||||||||||||
SHAREHOLDERS’ EQUITY | 3,319,420 | 3,270,789 | ||||||||||||||||||||||
TOTAL LIABILITIES AND | ||||||||||||||||||||||||
SHAREHOLDERS’ EQUITY | $ | 19,478,924 | $ | 18,769,934 | ||||||||||||||||||||
NET INTEREST INCOME | $ | 439,523 | $ | 445,208 | ||||||||||||||||||||
INTEREST SPREAD | 2.90 | % | 3.27 | % | ||||||||||||||||||||
NET INTEREST MARGIN | 3.42 | % | 3.61 | % |
(1) | The interest income and the yields on federally nontaxable loans and investment securities are presented on a tax-equivalent basis using the statutory federal income tax rate of 21%. |
(2) | Nonaccruing loans are included in the daily average loan amounts outstanding. |
2019, respectively.
March 31, | December 31, | |||||||||||||||||||||||
(In thousands) | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||
Nonaccrual loans(1) | ||||||||||||||||||||||||
Originated | $ | 52,880 | $ | 57,258 | $ | 97,971 | $ | 77,111 | $ | 83,146 | $ | 64,312 | ||||||||||||
Acquired | 10,522 | 11,286 | 10,832 | 6,414 | 8,043 | 10,739 | ||||||||||||||||||
Loans which are contractually past due 90 days or more as to interest or principal and are still accruing interest(1) | ||||||||||||||||||||||||
Originated | 12,429 | 11,945 | 7,288 | 7,763 | 11,462 | 10,868 | ||||||||||||||||||
Acquired | 3,143 | 2,906 | 2,515 | 823 | 166 | 807 | ||||||||||||||||||
Restructured loans(1) | ||||||||||||||||||||||||
Originated | 55,191 | 58,101 | 48,709 | 21,115 | 23,890 | 22,234 | ||||||||||||||||||
Acquired | 1,587 | 1,324 | 1,420 | 37 | 0 | 0 | ||||||||||||||||||
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Total nonperforming loans | $ | 135,752 | $ | 142,820 | $ | 168,835 | $ | 113,263 | $ | 126,707 | $ | 108,960 | ||||||||||||
Other real estate owned | 17,465 | 16,865 | 24,348 | 31,510 | 32,228 | 38,778 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
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| |||||||||||||
TOTAL NONPERFORMING ASSETS | $ | 153,217 | $ | 159,685 | $ | 193,083 | $ | 144,773 | $ | 158,935 | $ | 147,738 | ||||||||||||
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|
|
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|
|
|
September 30, | December 31, | |||||||||||||||||||||||
(In thousands) | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||
Nonaccrual loans (1) | ||||||||||||||||||||||||
Originated | $ | 60,942 | $ | 57,258 | $ | 97,971 | $ | 77,111 | $ | 83,146 | $ | 64,312 | ||||||||||||
Acquired | 8,942 | 11,286 | 10,832 | 6,414 | 8,043 | 10,739 | ||||||||||||||||||
Loans which are contractually past due 90 days or more as to interest or principal and are still accruing interest (1) | ||||||||||||||||||||||||
Originated | 7,015 | 11,945 | 7,288 | 7,763 | 11,462 | 10,868 | ||||||||||||||||||
Acquired | 2,825 | 2,906 | 2,515 | 823 | 166 | 807 | ||||||||||||||||||
Restructured loans (1) | ||||||||||||||||||||||||
Originated | 57,025 | 58,101 | 48,709 | 21,115 | 23,890 | 22,234 | ||||||||||||||||||
Acquired | 3,534 | 1,324 | 1,420 | 37 | 0 | 0 | ||||||||||||||||||
Total nonperforming loans | $ | 140,283 | $ | 142,820 | $ | 168,835 | $ | 113,263 | $ | 126,707 | $ | 108,960 | ||||||||||||
Other real estate owned | 18,367 | 16,865 | 24,348 | 31,510 | 32,228 | 38,778 | ||||||||||||||||||
TOTAL NONPERFORMING ASSETS | $ | 158,650 | $ | 159,685 | $ | 193,083 | $ | 144,773 | $ | 158,935 | $ | 147,738 | ||||||||||||
(1) | Restructured loans that were contractually past due 90 days or |
Income from bank-owned life insurance for the first quarter of 2019 was $1.83 million, an increase of $573 thousand from the first quarter of 2018 due to the recognition of $600 thousand in death benefits in the first quarter of 2019.
Net losses on investment securities’ transactions were $159 thousand for the first quarter of 2019, a decline of $326 thousand from the first quarter of 2018.
Virtually offsetting these increases from the first quarter of 2018 was a decrease of $889 thousand in income from mortgage banking activities for the first quarter of 2019 due to decreasedincreased production and sales of mortgage loans in the secondary market by George Mason. Income fromUnited’s mortgage banking activities totaled $13.68 million for the first quarter of 2019 compared to $14.57 million for the same period of 2018.subsidiary, George Mason Mortgage, LLC (George Mason). For the three months ended March 31,September 30, 2019 and 2018, mortgage loan sales were $349.49$821.03 million and $567.59$528.43 million, respectively.
On a linked-quarter basis, noninterest For the first nine months of 2019 and 2018, income from mortgage banking activities was $59.40 million and $46.54 million, respectively. The increase for the first quarternine months of 2019 increased $1.40 million or 4.68% from the fourth quarter of 2018was due mainly to an increase of $12.87 million in income from mortgage banking activities primarily due to increased loan originations and a decline in net losseshigher realized gain on investment securities transactions. Incomesale margin by George Mason. For the nine months ended September 30, 2019 and 2018, mortgage loan sales were $1.76 billion and $1.58 billion, respectively.
interchange income from decreased volume.
Employee compensation for the first quarter of 2019 decreased $1.89 million or 4.62% when compared to the first quarter of 2018. This decrease was primarily due to a decrease in commissions expense related to the decrease in production and sales of mortgage loans at George Mason.
Net occupancy expense decreased $676 thousand or 7.17% for the first quarter of 2019, as compared to the same period in 2018 due primarily to increased employee compensation. For the first nine months of 2019, noninterest expense increased $8.58 million or 3.09% from the first nine months of 2018 due mainly to the recognition of $5.11 million in penalties to prepay FHLB advances during the second quarter of 2019.
offices.
Partially offsetting these decreases for the first quarter of 2019 from the first quarter of 2018 was an increase in
the
the values of OREO properties.
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Change in Interest Rates (basis points) | Percentage Change in Net Interest Income | |||||||
March 31, 2019 | December 31, 2018 | |||||||
+200 | (3.89 | %) | (2.71 | %) | ||||
+100 | (1.83 | %) | (1.29 | %) | ||||
-100 | 1.48 | % | 0.97 | % | ||||
-200 | 0.14 | % | (0.97 | %) |
Change in Interest Rates (basis points) | Percentage Change in Net Interest Income | |||||||
September 30, 2019 | December 31, 2018 | |||||||
+200 | (1.09 | %) | (2.71 | %) | ||||
+100 | (0.33 | %) | (1.29 | %) | ||||
-100 | 0.21 | % | 0.97 | % | ||||
-200 | (1.26 | %) | (0.97 | %) |
decrease of 1.29% at December 31, 2018. A 200 basis point immediate, sustained upward shock in the yield curve would decrease net interest income by an estimated 3.89%1.09% over one year as of March 31,September 30, 2019, as compared to a decrease of 2.71% as of December 31, 2018. A 100 basis point immediate, sustained downward shock in the yield curve would increase net interest income by an estimated 1.48%0.21% over one year as of March 31, 2018September 30, 2019 as compared to an increase of 0.97%, over one year as of December 31, 2018. A 200 basis point immediate, sustained downward shock in the yield curve would increasedecrease net interest income by an estimated 0.14%1.26% over one year as of March 31,September 30, 2019 as compared to a decrease of 0.97% over one year as of December 31, 2018.
CMOs consisted primarily of planned amortization class (PACs),2.76%2.70%, under current projected prepayment assumptions. These securities are expected to have very little extension risk in a rising rate environment. Current models show that an immediate, sustained upward shock of 300 basis points, the average life of these securities would only extend to 4.34.5 years. The projected price decline of the fixed rate CMO portfolio in rates up 300 basis points would be 10.4%10.3%, or less than the price decline of a19.4%15.1%.
Item 4. |
realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls.March 31,September 30, 2019, an evaluation was performed under the supervision of and with the participation of United’s management, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of United’s disclosure controls and procedures. Based on that evaluation, United’s management, including the CEO and CFO, concluded that United’s disclosure controls and procedures as of March 31,September 30, 2019 were effective in ensuring that information required to be disclosed in the Quarterly Report on FormMarch 31,September 30, 2019, or in other factors that have materially affected or are reasonably likely to materially affect United’s internal control over financial reporting.
Item 1. | LEGAL PROCEEDINGS |
Item 1A. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS Period 1/01 – 1/31/2019 2/01 – 2/28/2019 3/01 – 3/31/2019 Total Includes shares exchanged in connection with the exercise of stock options and the vesting of restricted shares under United’s long-term incentive plans. Shares are purchased or vested pursuant to the terms of the applicable plan and not pursuant to a publicly announced stock repurchase plan. For the quarter ended Includes shares purchased in open market transactions by United for a rabbi trust to provide payment of benefits under a deferred compensation plan for certain key officers of United and its subsidiaries. For the quarter ended In November of 2018, United’s Board of Directors approved a repurchase plan to repurchase up to 3,352,000 shares of United’s common stock on the open market (the 2018 Plan). The timing, price and quantity of purchases under the plans are at the discretion of management and the plan may be discontinued, suspended or restarted at any time depending on the facts and circumstances.Item 2. March 31,September 30, 2019 that were not registered. The table below includes certain information regarding United’s purchase of its common shares during the quarter ended March 31,September 30, 2019: Total Number
of Shares
Purchased
(1) (2) Average Price
Paid
per Share Total Number of
Shares
Purchased as
Part of Publicly
Announced
Plans (3) Maximum Number
of Shares that May
Yet be Purchased
Under the Plans (3) 230,100 $ 31.49 230,100 2,251,900 0 $ 00.00 0 2,251,900 135,602 $ 35.58 123,900 2,128,000 365,702 $ 33.01 354,000
of Shares
Purchased
Paid
per Share
Shares
Purchased as
Part of Publicly
Announced
Plans (3)
of Shares that May
Yet be Purchased
Under the Plans (3) $ $ $ $ (1) March 31,September 30, 2019, – 11,69793,117 shares at an average price of $37.25 were exchanged by participants in United’s long-term incentive plans.(2) March 31,September 30, 2019, the following shares were purchased for the deferred compensation plan: MarchAugust 2019 – 54 shares at an average price of $31.61.(3)
Item 3. |
Item 4. | MINE SAFETY DISCLOSURES |
Item 5. |
(a) | None. |
(b) | No changes were made to the procedures by which security holders may recommend nominees to United’s Board of Directors. |
Item 6. ExhibitNo. Description
No. 2.1 3.1 3.2 31.1 31.2 32.1 32.2 101 (XBRL)(Inline XBRL) (filed herewith)
UNITED BANKSHARES, INC. | ||||||
(Registrant) | ||||||
| ||||||
Date: | November 8, 2019 | /s/ Richard M. Adams | ||||
Richard M. Adams, Chairman of the Board and Chief Executive Officer | ||||||
| ||||||
Date: | November 8, 2019 | /s/ W. Mark Tatterson | ||||
W. Mark Tatterson, Executive Vice President and Chief Financial Officer |
75