Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Entity [Abstract] | ||
Entity Registrant Name | BBVA USA BANCSHARES, INC. | |
Entity Central Index Key | 0001409775 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 222,963,891 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash and due from banks | $ 1,033,733 | $ 1,149,734 |
Federal funds sold, securities purchased under agreements to resell and interest bearing deposits | 4,479,535 | 5,788,964 |
Cash and cash equivalents | 5,513,268 | 6,938,698 |
Trading account assets | 1,009,130 | 473,976 |
Debt securities available for sale | 6,344,816 | 7,235,305 |
Debt securities held to maturity, net of allowance for debt securities held to maturity losses of $1,892 at March 31, 2020 (fair value of $8,267,393 and $6,921,158 at March 31, 2020 and December 31, 2019, respectively) | 7,876,266 | 6,797,046 |
Loans held for sale, at fair value | 117,752 | 112,058 |
Loans | 67,539,414 | 63,946,857 |
Allowance for loan losses | (1,351,072) | (920,993) |
Net loans | 66,188,342 | 63,025,864 |
Premises and equipment, net | 1,068,741 | 1,087,698 |
Bank owned life insurance | 754,409 | 750,224 |
Goodwill | 2,328,296 | 4,513,296 |
Other assets | 3,124,539 | 2,669,182 |
Total assets | 94,325,559 | 93,603,347 |
Deposits: | ||
Noninterest bearing | 20,418,504 | 21,850,216 |
Interest bearing | 56,816,003 | 53,135,067 |
Total deposits | 77,234,507 | 74,985,283 |
FHLB and other borrowings | 3,790,137 | 3,690,044 |
Federal funds purchased and securities sold under agreements to repurchase | 409,784 | 173,028 |
Accrued expenses and other liabilities | 1,532,777 | 1,368,403 |
Total liabilities | 82,967,205 | 80,216,758 |
Shareholder’s Equity: | ||
Series A Preferred stock, $.0.01 par value, liquidation preference $200,000 per share, authorized — 30,000,000 shares, issued — 1,150 at both March 31, 2020 and December 31, 2019 | 229,475 | 229,475 |
Common stock — $0.01 par value; authorized — 300,000,000 shares, issued — 222,963,891 shares at both March 31, 2020 and December 31, 2019, respectively | 2,230 | 2,230 |
Surplus | 14,039,572 | 14,043,727 |
Accumulated deficit | (3,305,226) | (917,227) |
Accumulated other comprehensive income (loss) | 362,339 | (1,072) |
Total BBVA USA Bancshares, Inc. shareholder’s equity | 11,328,390 | 13,357,133 |
Noncontrolling interests | 29,964 | 29,456 |
Total shareholder’s equity | 11,358,354 | 13,386,589 |
Total liabilities and shareholder’s equity | $ 94,325,559 | $ 93,603,347 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses on debt securities held to maturity | $ 1,892 | $ 0 |
Debt securities held to maturity, estimated fair value | $ 8,267,393 | $ 6,921,158 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference (in dollars per share) | $ 200,000 | $ 200,000 |
Preferred stock, number of shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, number of shares issued | 1,150 | 1,150 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, number of shares authorized | 300,000,000 | 300,000,000 |
Common stock, number of shares issued | 222,963,891 | 222,963,891 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income: | ||
Interest and fees on loans | $ 715,476 | $ 800,488 |
Interest on debt securities available for sale | (1,492) | 53,522 |
Interest on debt securities held to maturity | 41,102 | 29,495 |
Interest on trading account assets | 1,122 | 539 |
Interest and dividends on other earning assets | 42,175 | 22,968 |
Total interest income | 798,383 | 907,012 |
Interest expense: | ||
Interest on deposits | 164,742 | 182,354 |
Interest on FHLB and other borrowings | 21,176 | 37,626 |
Interest on federal funds purchased and securities sold under agreements to repurchase | 22,658 | 3,747 |
Interest on other short-term borrowings | 352 | 196 |
Total interest expense | 208,928 | 223,923 |
Net interest income | 589,455 | 683,089 |
Total provision for credit losses | 356,991 | 182,292 |
Net interest income after provision for credit losses | 232,464 | 500,797 |
Noninterest income: | ||
Mortgage banking | 17,451 | 4,937 |
Corporate and correspondent investment sales | 10,717 | 6,892 |
Bank owned life insurance | 4,625 | 4,584 |
Investment securities gains, net | 19,139 | 8,958 |
Other | 73,098 | 49,178 |
Total noninterest income | 334,242 | 257,760 |
Noninterest expense: | ||
Salaries, benefits and commissions | 310,136 | 292,716 |
Professional services | 70,220 | 63,896 |
Equipment | 64,681 | 65,394 |
Net occupancy | 39,843 | 40,941 |
Money transfer expense | 17,136 | 14,978 |
Goodwill impairment | 2,185,000 | 0 |
Other | 122,044 | 104,048 |
Total noninterest expense | 2,809,060 | 581,973 |
Net (loss) income before income tax expense | (2,242,354) | 176,584 |
Income tax (benefit) expense | (5,069) | 35,603 |
Net (loss) income | (2,237,285) | 140,981 |
Less: net income attributable to noncontrolling interests | 501 | 556 |
Net (loss) income attributable to BBVA USA Bancshares, Inc. | (2,237,786) | 140,425 |
Less: preferred stock dividends | 4,155 | 4,485 |
Net (loss) income attributable to common shareholder | (2,241,941) | 135,940 |
Service charges on deposit accounts | ||
Noninterest income: | ||
Noninterest income | 61,531 | 58,908 |
Card and merchant processing fees | ||
Noninterest income: | ||
Noninterest income | 50,091 | 46,002 |
Investment services sales fees | ||
Noninterest income: | ||
Noninterest income | 34,407 | 26,696 |
Money transfer income | ||
Noninterest income: | ||
Noninterest income | 24,548 | 21,981 |
Investment banking and advisory fees | ||
Noninterest income: | ||
Noninterest income | 26,731 | 18,857 |
Asset management fees | ||
Noninterest income: | ||
Noninterest income | $ 11,904 | $ 10,767 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (2,237,285) | $ 140,981 |
Other comprehensive income, net of tax: | ||
Net unrealized gains arising during period from debt securities available for sale | 99,699 | 51,700 |
Less: reclassification adjustment for net gains on sale of debt securities available for sale in net income | 14,572 | 6,834 |
Net change in net unrealized holding gains on debt securities available for sale | 85,127 | 44,866 |
Change in unamortized net holding gains on debt securities held to maturity | 1,575 | 1,743 |
Change in unamortized non-credit related impairment on debt securities held to maturity | 118 | 368 |
Net change in unamortized holding gains on debt securities held to maturity | 1,693 | 2,111 |
Unrealized holding gains arising during period from cash flow hedge instruments | 274,837 | 24,053 |
Change in defined benefit plans | 1,754 | 3,119 |
Other comprehensive income, net of tax | 363,411 | 74,149 |
Comprehensive (loss) income | (1,873,874) | 215,130 |
Less: comprehensive income attributable to noncontrolling interests | 501 | 556 |
Comprehensive (loss) income attributable to BBVA USA Bancshares, Inc. | $ (1,874,375) | $ 214,574 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholder's Equity (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Surplus | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interests | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect adjustment related to ASU adoptions | ASU 2016-02, 2017-12, 2018-02 | [1] | $ 3,460 | $ 38,896 | $ (35,436) | ||||
Balance, as adjusted | 13,515,989 | $ 229,475 | $ 2,230 | $ 14,545,849 | (1,068,302) | (222,284) | $ 29,021 | |
Balance, beginning of period at Dec. 31, 2018 | 13,512,529 | 229,475 | 2,230 | 14,545,849 | (1,107,198) | (186,848) | 29,021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 140,981 | 140,425 | 556 | |||||
Other comprehensive income (loss), net of tax | 74,149 | 74,149 | ||||||
Issuance of common stock | 802 | 802 | ||||||
Preferred stock dividends | (4,485) | (4,485) | ||||||
Capital contribution | 101 | 101 | ||||||
Balance, end of period at Mar. 31, 2019 | 13,727,537 | 229,475 | 2,230 | 14,542,166 | (927,877) | (148,135) | 29,678 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect adjustment related to ASU adoptions | ASU 2016-13 | (150,213) | (150,213) | ||||||
Balance, as adjusted | 13,236,376 | 229,475 | 2,230 | 14,043,727 | (1,067,440) | (1,072) | 29,456 | |
Balance, beginning of period at Dec. 31, 2019 | 13,386,589 | 229,475 | 2,230 | 14,043,727 | (917,227) | (1,072) | 29,456 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | (2,237,285) | (2,237,786) | 501 | |||||
Other comprehensive income (loss), net of tax | 363,411 | 363,411 | ||||||
Preferred stock dividends | (4,155) | (4,155) | ||||||
Capital contribution | 7 | 7 | ||||||
Balance, end of period at Mar. 31, 2020 | $ 11,358,354 | $ 229,475 | $ 2,230 | $ 14,039,572 | $ (3,305,226) | $ 362,339 | $ 29,964 | |
[1] | Related to the Company's adoption of ASU 2016-02, ASU 2017-12 and ASU 2018-02 on January 1, 2019. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities: | ||
Net (loss) income | $ (2,237,285) | $ 140,981 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 104,267 | 85,705 |
Goodwill impairment | 2,185,000 | 0 |
Accretion of discount, loan fees and purchase market adjustments, net | (8,070) | (13,557) |
Provision for credit losses | 356,991 | 182,292 |
Net change in trading account assets | (535,154) | (68,467) |
Net change in trading account liabilities | 124,326 | (30,075) |
Originations and purchases of mortgage loans held for sale | (209,524) | (127,894) |
Sale of mortgage loans held for sale | 212,605 | 124,857 |
Deferred tax (benefit) expense | (66,187) | 666 |
Investment securities gains, net | (19,139) | (8,958) |
Net gain on sale of premises and equipment | (483) | (1,297) |
Loss on sale of loans | 0 | 78 |
Gain on sale of mortgage loans held for sale | (8,775) | (5,135) |
Net loss on sale of other real estate and other assets | 625 | 1,305 |
Increase in other assets | (7,625) | (177,149) |
Increase in other liabilities | 111,425 | 46,979 |
Net cash provided by operating activities | 2,997 | 150,331 |
Investing Activities: | ||
Proceeds from sales of debt securities available for sale | 607,655 | 1,446,776 |
Proceeds from prepayments, maturities and calls of debt securities available for sale | 1,137,698 | 1,065,045 |
Purchases of debt securities available for sale | (769,621) | (772,086) |
Proceeds from prepayments, maturities and calls of debt securities held to maturity | 204,481 | 88,119 |
Purchases of debt securities held to maturity | (1,298,774) | (1,779,789) |
Proceeds from sales of equity securities | 16,479 | 165,495 |
Purchases of equity securities | (883) | (168,209) |
Net change in loan portfolio | (3,702,303) | (7,043) |
Proceeds from sales of loans | 0 | 144,596 |
Purchases of premises and equipment | (25,811) | (31,735) |
Proceeds from sales of premises and equipment | 1,377 | 1,543 |
Proceeds from settlement of BOLI policies | 442 | 0 |
Cash payments for premiums of BOLI policies | 0 | (9) |
Proceeds from sales of other real estate owned | 5,301 | 7,115 |
Net cash (used in) provided by investing activities | (3,823,959) | 159,818 |
Financing Activities: | ||
Net increase in total deposits | 2,251,788 | 2,215,223 |
Net increase in federal funds purchased and securities sold under agreements to repurchase | 236,756 | 85,749 |
Net increase in other short-term borrowings | 0 | 30,975 |
Proceeds from FHLB and other borrowings | 1,000 | 3,840,000 |
Repayment of FHLB and other borrowings | (1,057) | (3,840,055) |
Capital contribution for non-controlling interest | 7 | 101 |
Issuance of common stock | 0 | 802 |
Preferred dividends paid | (4,155) | (4,485) |
Net cash provided by financing activities | 2,484,339 | 2,328,310 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (1,336,623) | 2,638,459 |
Cash, cash equivalents and restricted cash at beginning of year | 7,156,689 | 3,501,380 |
Cash, cash equivalents and restricted cash at end of period | $ 5,820,066 | $ 6,139,839 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation General The accounting and reporting policies of the Company and the methods of applying those policies that materially affect the consolidated financial statements conform with U.S. GAAP and with general financial services industry practices. The accompanying unaudited consolidated financial statements include the accounts of BBVA USA Bancshares, Inc. and its subsidiaries and have been prepared in conformity with U.S. GAAP for interim financial information and in accordance with the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. In the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair presentation of the condensed consolidated financial statements have been included. Operating results for the three months ended March 31, 2020 , are not necessarily indicative of the results that may be expected for the year ended December 31, 2020 . These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . The Company has evaluated subsequent events for potential recognition and disclosure through the filing date of this Quarterly Report on Form 10-Q to determine if either recognition or disclosure of significant events or transactions is required. Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, the most significant of which relate to the allowance for credit losses and goodwill impairment. Actual results could differ from those estimates. The extent to which the COVID-19 pandemic impacts the results of operations and financial condition, will depend on future developments, which are highly uncertain and cannot be predicted. Recently Adopted Accounting Standards Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which introduces new guidance for the accounting for credit losses on instruments within its scope. The new approach changes the impairment model for most financial assets, and will require the use of an “expected credit loss” model for financial instruments measured at amortized cost and certain other instruments. This model applies to receivables, loans, debt securities, and off-balance sheet credit exposures. This model requires entities to estimate the lifetime expected credit loss on such instruments and record an allowance that represents the portion of the amortized cost basis that the entity does not expect to collect. This allowance is deducted from the financial asset’s amortized cost basis to present the net amount expected to be collected. The new expected credit loss model also applies to purchased financial assets with credit deterioration, superseding current accounting guidance for such assets. The amended guidance also amends the impairment model for available-for-sale debt securities, requiring entities to determine whether all or a portion of the unrealized loss on such securities is a credit loss, and also eliminating the option for management to consider the length of time a security has been in an unrealized loss position as a factor in concluding whether or not a credit loss exists. The amended model states that an entity will recognize an allowance for credit losses on available-for-sale debt securities, instead of a direct reduction of the amortized cost basis of the investment, as required under current guidance. As a result, entities recognize improvements to estimated credit losses on available-for-sale debt securities immediately in earnings as opposed to in interest income over time. There are also additional disclosure requirements included in this guidance. In November 2018, the FASB issued ASU 2018-19 and in April, May and November 2019 and February 2020, the FASB issued ASU 2019-04, ASU 2019-05, ASU 2019-11, and ASU 2020-02 respectively, which made minor clarifications to the guidance in ASU 2016-13. The Company’s implementation process included loss model development, data sourcing and validation, development of governance processes, development of a qualitative framework, documentation and governance surrounding economic forecast for credit loss purposes, evaluation of technical accounting topics, updates to allowance policies and methodology documentation, development of reporting processes and related internal controls. The Company adopted this ASU, as amended on January 1, 2020 using a modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under this ASU, while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net of tax increase to accumulated deficit of $150.2 million as of January 1, 2020 for the cumulative effect of adopting this ASU. The Company adopted this ASU using the prospective transition approach for debt securities for which other-than -temporary impairment has been recognized prior to January 1, 2020. As a result, the amortized cost basis remained the same before and after the effective date of this ASU. The effective interest rate on these debt securities was not changed. Amounts previously recognized in accumulated other comprehensive income as of January 1, 2020 related to improvements in cash flows expected to be collected will be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after January 1, 2020 will be recorded in earnings when received. The amended guidance in this ASU eliminates the current accounting model for purchased-credit-impaired loans, but requires an allowance to be recognized for purchased-credit-deteriorated assets (those that have experienced more-than-insignificant deterioration in credit quality since origination). The Company had no impact from purchased-credit-deteriorated assets upon adoption. The following table illustrates the impact of ASC 326. January 1, 2020 As Reported Under ASC 326 Pre-ASC Adoption Impact of ASC 326 Adoption (In Thousands) Assets: Allowance for credit losses on debt securities held to maturity $ 1,847 $ — $ 1,847 Allowance for credit losses on loans 1,105,924 920,993 184,931 Liabilities: Allowance for credit losses on letters of credit and unfunded commitments 76,946 66,955 9,991 The Company did not record a material allowance with respect to HTM and AFS securities as the portfolios consist primarily of U.S. Treasury and agency-backed securities that inherently have minimal credit risk. See Note 2 , Debt Securities Available for Sale and Debt Securities Held to Maturity , and Note 3 , Loans and Allowance for Loan Losses , for the required disclosures in accordance with this ASU. Fair Value Measurements In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements . The amendments in this ASU modified the disclosure requirements for fair value measurements in Topic 820, Fair Value Measurements . The Company adopted this ASU on January 1, 2020. The adoption of this standard did not have material impact on the financial condition or results of operation of the Company. See Note 9 , Fair Value Measurements , for the modified disclosure in accordance with this ASU. Internal-Use Software In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. The Company adopted this ASU on January 1, 2020. The adoption of this standard did not have material impact on the financial condition or results of operation of the Company. |
Debt Securities Available for S
Debt Securities Available for Sale and Debt Securities Held to Maturity | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities Available for Sale and Debt Securities Held to Maturity | Debt Securities Available for Sale and Debt Securities Held to Maturity The following tables present the adjusted cost and approximate fair value of debt securities available for sale and debt securities held to maturity. March 31, 2020 Gross Unrealized Amortized Cost Gains Losses Fair Value (In Thousands) Debt securities available for sale: U.S. Treasury and other U.S. government agencies $ 2,534,159 $ 62,833 $ 26,679 $ 2,570,313 Agency mortgage-backed securities 1,173,282 24,195 11,801 1,185,676 Agency collateralized mortgage obligations 2,541,103 50,649 3,642 2,588,110 States and political subdivisions 686 31 — 717 Total $ 6,249,230 $ 137,708 $ 42,122 $ 6,344,816 Debt securities held to maturity: U.S. Treasury and other U.S. government agencies $ 1,288,246 $ 127,437 $ — $ 1,415,683 Collateralized mortgage obligations: Agency 5,959,454 261,403 — 6,220,857 Non-agency 35,930 4,490 2,182 38,238 Asset-backed securities and other 51,503 1,423 4,230 48,696 States and political subdivisions (1) 543,025 8,536 7,642 543,919 Total $ 7,878,158 $ 403,289 $ 14,054 $ 8,267,393 (1) The Company recorded an allowance of $2 million , at March 31, 2020 , related to state and political subdivisions, which is not included in the table above. December 31, 2019 Gross Unrealized Amortized Cost Gains Losses Fair Value (In Thousands) Debt securities available for sale: U.S. Treasury and other U.S. government agencies $ 3,145,331 $ 16,888 $ 34,694 $ 3,127,525 Agency mortgage-backed securities 1,322,432 12,444 9,019 1,325,857 Agency collateralized mortgage obligations 2,783,003 7,744 9,622 2,781,125 States and political subdivisions 757 41 — 798 Total $ 7,251,523 $ 37,117 $ 53,335 $ 7,235,305 Debt securities held to maturity: U.S. Treasury and other U.S. government agencies $ 1,287,049 $ 53,399 $ — $ 1,340,448 Collateralized mortgage obligations: Agency 4,846,862 82,105 16,568 4,912,399 Non-agency 37,705 5,923 1,154 42,474 Asset-backed securities and other 52,355 1,266 2,017 51,604 States and political subdivisions 573,075 8,652 7,494 574,233 Total $ 6,797,046 $ 151,345 $ 27,233 $ 6,921,158 The investments held within the states and political subdivision caption of debt securities held to maturity relate to private placement transactions underwritten as loans by the Company but that meet the definition of a security within ASC Topic 320, Investments – Debt Securities . As noted in Note 1, Basis of Presentation, the Company adopted ASC 326 on January 1, 2020, which had an immaterial impact on the Company's available for sale debt securities and held to maturity debt securities. The Company records its HTM debt securities at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as AFS when they might be sold before they mature. The Company records its AFS debt securities at fair value with unrealized holding gains and losses reported in other comprehensive income. The Company measures expected credit losses on held to maturity debt securities on a collective basis by major security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The majority of the Company's HTM debt securities portfolio consists of U.S. government entities and agencies which are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies and inherently have minimal risk of nonpayment and therefore has applied a zero credit loss assumption for these securities. Under the revised guidance of ASC 326, if the fair value of a security falls below the amortized cost basis, the security will be evaluated to determine if any of the decline in value is attributable to credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security, and adverse conditions specially related to the security, among other factors. If it is determined that a credit loss exists then an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. If the credit subsequently improves, the allowance is reversed. When the Company intends to sell an impaired AFS debt security or it is more likely than not that the security will be required to be sold prior to recovering the amortized cost basis, the security's amortized cost basis is written down to fair value through income. A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. The Company has elected to not measure an allowance on its accrued interest receivable as a result of the timely reversal of interest receivable deemed uncollectible. Interest accrued but not received for a security placed on nonaccrual is reversed against interest income. The following tables disclose the fair value and the gross unrealized losses of the Company’s available for sale debt securities that were in a loss position at March 31, 2020 and December 31, 2019 , for which an allowance for credit losses has not been recorded at March 31, 2020 . This information is aggregated by investment category and the length of time the individual securities have been in an unrealized loss position. March 31, 2020 Securities in a loss position for less than 12 months Securities in a loss position for 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In Thousands) Debt securities available for sale: U.S. Treasury and other U.S. government agencies $ 257,286 $ 57 $ 385,446 $ 26,622 $ 642,732 $ 26,679 Agency mortgage-backed securities 277,545 3,473 276,708 8,328 554,253 11,801 Agency collateralized mortgage obligations 94,112 111 346,121 3,531 440,233 3,642 Total $ 628,943 $ 3,641 $ 1,008,275 $ 38,481 $ 1,637,218 $ 42,122 December 31, 2019 Securities in a loss position for less than 12 months Securities in a loss position for 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In Thousands) Debt securities available for sale: U.S. Treasury and other U.S. government agencies $ 59,496 $ 208 $ 819,360 $ 34,486 $ 878,856 $ 34,694 Agency mortgage-backed securities 245,191 851 592,312 8,168 837,503 9,019 Agency collateralized mortgage obligations 880,485 4,768 579,679 4,854 1,460,164 9,622 Total $ 1,185,172 $ 5,827 $ 1,991,351 $ 47,508 $ 3,176,523 $ 53,335 As indicated in the previous tables, at March 31, 2020 , the Company held debt securities in unrealized loss positions. The Company has not recognized the unrealized losses into income for its securities because they are all backed by the U.S. government or government agencies and management does not intend to sell and it is likely that management will not be required to sell these securities before their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The fair value is expected to recover as the securities approach maturity. The following table presents the activity in the allowance for debt securities held to maturity losses as of March 31, 2020 . Held to Maturity Debt Securities (In Thousands) Three months ended March 31, 2020 Allowance for debt securities held to maturity losses: Balance at beginning of period $ — Impact of adopting ASC 326 1,847 Provision for credit losses 45 Securities charged off — Recoveries — Balance at end of period $ 1,892 The Company regularly evaluates each held to maturity debt security for credit losses on a quarterly basis. The Company has not recorded a provision for credit loss related to its agency securities because they are all backed by the U.S. government or government agencies and have been deemed to have zero expected credit loss as of March 31, 2020 . These securities are evaluated quarterly to determine if they still qualify as a zero credit loss security. The Company has non-agency securities that have unrealized losses at March 31, 2020 . The Company considers such factors as the extent to which the fair value has been below cost and the financial condition of the issuer. The Company monitors the credit quality of its HTM debt securities through credit ratings. The following table presents the amortized cost of HTM debt securities, as of March 31, 2020 , aggregated by credit quality indicator. March 31, 2020 Range of Ratings AAA AA+ / A - BBB+ / B- CCC+ / C D NR Total (In Thousands) Debt securities held to maturity: U.S. Treasury and other U.S. government agencies $ 1,288,246 $ — $ — $ — $ — $ — $ 1,288,246 Collateralized mortgage obligations: Agency 5,959,454 — — — — — 5,959,454 Non-agency 75 11,515 10,770 6,095 3,160 4,315 35,930 Asset-backed securities and other — 50,288 330 803 — 82 51,503 States and political subdivisions — 337,789 205,236 — — — 543,025 $ 7,247,775 $ 399,592 $ 216,336 $ 6,898 $ 3,160 $ 4,397 $ 7,878,158 The contractual maturities of the securities portfolios are presented in the following table. March 31, 2020 Amortized Cost Fair Value (In Thousands) Debt securities available for sale: Maturing within one year $ 425,274 $ 426,343 Maturing after one but within five years 1,646,452 1,706,765 Maturing after five but within ten years 21,114 21,833 Maturing after ten years 442,005 416,089 2,534,845 2,571,030 Mortgage-backed securities and collateralized mortgage obligations 3,714,385 3,773,786 Total $ 6,249,230 $ 6,344,816 Debt securities held to maturity: Maturing within one year $ 49,190 $ 50,040 Maturing after one but within five years 1,391,311 1,519,329 Maturing after five but within ten years 272,817 274,289 Maturing after ten years 169,456 164,640 1,882,774 2,008,298 Collateralized mortgage obligations 5,995,384 6,259,095 Total $ 7,878,158 $ 8,267,393 The gross realized gains and losses recognized on sales of debt securities available for sale are shown in the table below. Three Months Ended March 31, 2020 2019 (In Thousands) Gross gains $ 19,139 $ 8,958 Gross losses — — Net realized gains $ 19,139 $ 8,958 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans Loans that management has the intent and ability to hold for the forseeable future or until maturity or pay-off are considered held-for-investment. Loans are stated at amortized cost, net of the allowance for loan losses. Amortized cost, or the recorded investment, is the principal balance outstanding, adjusted for charge-offs, deferred loan fees and direct costs on originated loans and unamortized premiums or discounts on purchased loans. Accrued interest receivable is reported in other assets on the Company’s Unaudited Condensed Consolidated Balance Sheets. Interest income is accrued on the principal balance outstanding and is recognized on the interest method. Loan fees, net of direct costs and unamortized premiums and discounts are deferred and amortized as an adjustment to the yield of the related loan over the term of the loan and are included as a noncash adjustment in the net cash provided by operating activities in the Company’s Unaudited Condensed Consolidated Statement of Cash Flows. The Company has elected to not measure an allowance on its accrued interest receivable as a result of the timely reversal of interest receivable deemed uncollectible. It is the general policy of the Company to stop accruing interest income and apply subsequent interest payments as principal reductions when any commercial, industrial, commercial real estate or construction loan is 90 days or more past due as to principal or interest and/or the ultimate collection of either is in doubt, unless collection of both principal and interest is assured by way of collateralization, guarantees or other security. Accrual of interest income on consumer loans, including residential real estate loans, is generally suspended when any payment of principal or interest is more than 90 days delinquent or when foreclosure proceedings have been initiated or repossession of the underlying collateral has occurred. When a loan is placed on a nonaccrual status, any interest previously accrued but not collected is reversed against current interest income unless the fair value of the collateral for the loan is sufficient to cover the accrued interest. In general, a loan is returned to accrual status when none of its principal and interest is due and unpaid and the Company expects repayments of the remaining contractual principal and interest or when it is determined to be well secured and in the process of collection. Charge-offs on commercial loans are recognized when available information confirms that some or all of the balance is uncollectible. Consumer loans are subject to mandatory charge-off at a specified delinquency date consistent with regulatory guidelines. In general, charge-offs on consumer loans are recognized at the earlier of the month of liquidation or the month the loan becomes 120 days past due; residential loan deficiencies are charged off in the month the loan becomes 180 days past due; and credit card loans are charged off before the end of the month when the loan becomes 180 days past due with the related interest accrued but not collected reversed against current income. The Company determines past due or delinquency status of a loan based on contractual payment terms. Troubled Debt Restructurings A loan is accounted for as a TDR if the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. A TDR typically involves a modification of terms such as establishment of a below market interest rate, a reduction in the principal amount of the loan, a reduction of accrued interest or an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk. The Company’s policy for measuring the allowance for credit losses on TDRs, including TDRs that have defaulted, is consistent with its policy for other loans held for investment. The Company’s policy for returning nonaccrual TDRs to accrual status is consistent with its return to accrual policy for all other loans. Allowance for Loan Losses The allowance for loan losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management uses discounted cash flows, default probabilities and loss severities to calculate the allowance for loan losses. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, gross domestic product, or other relevant factors. The Company has internally developed a macroeconomic forecast which projects over a four-year reasonable and supportable forecast period. Management may change the horizon of the forecast in response to changes in portfolio composition or performance as well as changes in the economic environment. After the forecast period, the Company reverts to long run historical average default probabilities and loss severities using a linear model with a variable reversion speed determined on a portfolio basis, for those portfolios with sufficient history. Economic Forecast: Management selects economic variables it believes to be most relevant based on the composition of the loan portfolio and customer base, including forecasted levels of employment, gross domestic product, real estate price indices, interest rates and corporate bond spreads. The Company uses an internally formulated and approved single baseline economic scenario for the collective estimation. However, management will assess the uncertainty associated with the baseline scenario in each period, and may make adjustments based on alternative scenarios applied through the qualitative framework. Determining the Contractual Term: Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower. While the Company does have contracts with extension or renewal options included, the vast majority are considered unconditionally cancellable. The Company monitors the entire loan portfolio so that risks in the portfolio can be identified on a timely basis and an appropriate allowance maintained. Loan review procedures, including loan grading, periodic credit rescoring and trend analysis of portfolio performance, are utilized by the Company in order to ensure that potential problem loans are identified. Management’s involvement continues throughout the process and includes participation in the work-out process and recovery activity. These formalized procedures are monitored internally and by regulatory agencies. The allowance for credit losses is measured on a collective basis when similar risk characteristics exist. The Company has identified the following portfolio segments: commercial, financial and agricultural; commercial real estate; residential real estate; and consumer. Commercial loans utilize internal risk grades aligned with regulatory classifications to assess risks. Consumer loans utilize credit scoring models as the basis for assessing risk of consumer borrowers. The Company estimates the present value of cash shortfalls resulting from the sum of the marginal losses occurring in each time period, on an annual basis, over the remaining life of the loan. The marginal losses are derived from the projection of principal balance, inclusive of principal cash flow and prepayment schedules, and parameters reflecting the severity of losses (LGD) in the case of default that is given by the marginal probability of default (Marginal PD) for each period of the portfolio’s lifetime. The Company also includes the considerations of a forecasted macroeconomic scenario by adjusting the PDs and LGDs applied, with econometric models dependent on the aforementioned correlated macroeconomic variables included in the forecasted scenarios. The allowance for credit losses on loans that do not share similar risk characteristics are estimated on an individual basis. Individual evaluations are typically performed for nonaccrual loans and certain accruing loans, based on dollar thresholds. These loans receive specific reserves allocated based on the present value of the loan's expected future cash flows, discounted at the loan's original effective rate, except where foreclosure or liquidation is probable or when the cash flows are predominately dependent on the value of the collateral. In these circumstances, impairment is measured based upon the fair value less cost to sell of the collateral. The Company adjusts the loss estimates described above when it is determined that expected credit losses may not have been captured in the loss estimates. To adjust the loss estimates, the Company considers qualitative factors such as changes in risk profile/composition; current economic and business conditions and uncertainty of outlook, potentially including alternative economic scenarios; limitations in the data or models used in the collective estimation; credit risk management practices; and other external/environmental factors. In order to estimate an allowance for credit losses on letters of credit and unfunded commitments, the Company uses a process consistent with that used in developing the allowance for loan losses. The Company estimates future fundings of current, noncancellable, unfunded commitments based on historical funding experience of these commitments before default and adjusted based on historical cancellations. Allowance for loan loss factors, which are based on product and loan grade, and are consistent with the factors used for portfolio loans, are applied to these funding estimates and discounted to the present value to arrive at the reserve balance. The allowance for credit losses on letters of credit and unfunded commitments is recognized in accrued expenses and other liabilities on the Company’s Unaudited Condensed Consolidated Balance Sheets with changes recognized within noninterest expense in the Company’s Unaudited Condensed Consolidated Statements of Income. See Note 8 , Commitments, Contingencies and Guarantees for additional information. The following table presents the composition of the loan portfolio. March 31, 2020 December 31, 2019 (In Thousands) Commercial loans: Commercial, financial and agricultural $ 27,832,113 $ 24,432,238 Real estate – construction 2,171,714 2,028,682 Commercial real estate – mortgage 13,853,405 13,861,478 Total commercial loans 43,857,232 40,322,398 Consumer loans: Residential real estate – mortgage 13,446,018 13,533,954 Equity lines of credit 2,611,350 2,592,680 Equity loans 229,369 244,968 Credit card 1,023,372 1,002,365 Consumer direct 2,276,045 2,338,142 Consumer indirect 4,096,028 3,912,350 Total consumer loans 23,682,182 23,624,459 Total loans $ 67,539,414 $ 63,946,857 Accrued interest receivable totaling $206 million and $205 million at March 31, 2020 and December 31, 2019 , respectively, was reported in other assets on the Company's Unaudited Condensed Balance Sheets and is excluded from the related footnote disclosures. Allowance for Loan Losses and Credit Quality The following table, which excludes loans held for sale, presents a summary of the activity in the allowance for loan losses. The portion of the allowance that has not been identified by the Company as related to specific loan categories has been allocated to the individual loan categories on a pro rata basis for purposes of the table below: Commercial, Financial and Agricultural Commercial Real Estate (1) Residential Real Estate (2) Consumer (3) Total (In Thousands) Three months ended March 31, 2020 Allowance for loan losses: Beginning balance, prior to adoption of ASC 326 $ 408,197 $ 118,633 $ 99,089 $ 295,074 $ 920,993 Impact of adopting ASC 326 18,389 (35,034 ) 47,390 154,186 184,931 Beginning balance, after adoption of ASC 326 426,586 83,599 146,479 449,260 1,105,924 Provision for loan losses 140,413 24,548 7,032 184,953 356,946 Loans charged-off (24,207 ) (87 ) (1,999 ) (115,866 ) (142,159 ) Loan recoveries 5,193 173 1,423 23,572 30,361 Net charge-offs (19,014 ) 86 (576 ) (92,294 ) (111,798 ) Ending balance $ 547,985 $ 108,233 $ 152,935 $ 541,919 $ 1,351,072 Three months ended March 31, 2019 Allowance for loan losses: Beginning balance $ 393,315 $ 112,437 $ 101,929 $ 277,561 $ 885,242 Provision for loan losses 59,180 4,662 2,183 116,267 182,292 Loans charged-off (9,503 ) (25 ) (5,012 ) (112,873 ) (127,413 ) Loan recoveries 4,760 1,462 3,589 16,090 25,901 Net charge-offs (4,743 ) 1,437 (1,423 ) (96,783 ) (101,512 ) Ending balance $ 447,752 $ 118,536 $ 102,689 $ 297,045 $ 966,022 (1) Includes commercial real estate – mortgage and real estate – construction loans. (2) Includes residential real estate – mortgage, equity lines of credit and equity loans. (3) Includes credit card, consumer direct and consumer indirect loans. The increase in the allowance for loan losses from January 1, 2020 to March 31, 2020, was primarily driven by the deteriorating economic outlook resulting from the COVID-19 pandemic as well as the impact of declining oil prices. The table below provides a summary of the allowance for loan losses and related loan balances by portfolio at December 31, 2019 . Commercial, Financial and Agricultural Commercial Real Estate (1) Residential Real Estate (2) Consumer (3) Total (In Thousands) December 31, 2019 Ending balance of allowance attributable to loans: Individually evaluated for impairment $ 88,164 $ 13,255 $ 22,775 $ 2,638 $ 126,832 Collectively evaluated for impairment 320,033 105,378 76,314 292,436 794,161 Total allowance for loan losses $ 408,197 $ 118,633 $ 99,089 $ 295,074 $ 920,993 Ending balance of loans: Individually evaluated for impairment $ 238,653 $ 78,301 $ 155,728 $ 13,362 $ 486,044 Collectively evaluated for impairment 24,193,585 15,811,859 16,215,874 7,239,495 63,460,813 Total loans $ 24,432,238 $ 15,890,160 $ 16,371,602 $ 7,252,857 $ 63,946,857 (1) Includes commercial real estate – mortgage and real estate – construction loans. (2) Includes residential real estate – mortgage, equity lines of credit and equity loans. (3) Includes credit card, consumer direct and consumer indirect loans. The following table presents information on nonaccrual loans, by loan class at March 31, 2020 . March 31, 2020 Nonaccrual Nonaccrual With No Recorded Allowance (In Thousands) Commercial, financial and agricultural $ 323,881 $ 34,522 Real estate – construction 13,676 — Commercial real estate – mortgage 114,839 33,438 Residential real estate – mortgage 147,058 — Equity lines of credit 33,354 — Equity loans 8,027 — Credit card — — Consumer direct 7,160 — Consumer indirect 28,721 — Total loans $ 676,716 $ 67,960 The following table presents information on individually evaluated impaired loans, by loan class at December 31, 2019 . December 31, 2019 Individually Evaluated Impaired Loans With No Recorded Allowance Individually Evaluated Impaired Loans With a Recorded Allowance Recorded Investment Unpaid Principal Balance Allowance Recorded Investment Unpaid Principal Balance Allowance (In Thousands) Commercial, financial and agricultural $ 51,203 $ 52,991 $ — $ 187,450 $ 249,486 $ 88,164 Real estate – construction — — — 5,972 5,979 850 Commercial real estate – mortgage 46,232 51,286 — 26,097 27,757 12,405 Residential real estate – mortgage — — — 111,623 111,623 8,974 Equity lines of credit — — — 15,466 15,472 10,896 Equity loans — — — 28,639 29,488 2,905 Credit card — — — — — — Consumer direct — — — 11,601 13,596 1,903 Consumer indirect — — — 1,761 1,761 735 Total loans $ 97,435 $ 104,277 $ — $ 388,609 $ 455,162 $ 126,832 The following table presents information on individually impaired loans, by loan class for the three months ended March 31, 2019 . Three Months Ended March 31, 2019 Average Recorded Investment Interest Income Recognized (In Thousands) Commercial, financial and agricultural $ 413,888 $ 963 Real estate – construction 134 2 Commercial real estate – mortgage 82,864 215 Residential real estate – mortgage 106,397 649 Equity lines of credit 15,257 174 Equity loans 31,718 276 Credit card — — Consumer direct 5,559 68 Consumer indirect 364 — Total loans $ 656,181 $ 2,347 The Company monitors the credit quality of its commercial portfolio using an internal dual risk rating, which considers both the obligor and the facility. The obligor risk ratings are defined by ranges of default probabilities of the borrowers, through internally assigned letter grades (AAA through D2) and the facility risk ratings are defined by ranges of the loss given default. The combination of those two approaches results in the assessment of the likelihood of loss and it is mapped to the regulatory classifications. The Company assigns internal risk ratings at loan origination and at regular intervals subsequent to origination. Loan review intervals are dependent on the size and risk grade of the loan, and are generally conducted at least annually. Additional reviews are conducted when information affecting the loan’s risk grade becomes available. The general characteristics of the risk grades are as follows: • The Company’s internally assigned letter grades “AAA” through “B-” correspond to the regulatory classification “Pass.” These loans do not have any identified potential or well-defined weaknesses and have a high likelihood of orderly repayment. Exceptions exist when either the facility is fully secured by a CD and held at the Company or the facility is secured by properly margined and controlled marketable securities. • Internally assigned letter grades “CCC+” through “CCC” correspond to the regulatory classification “Special Mention.” Loans within this classification have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. • Internally assigned letter grades “CCC-” through “D1” correspond to the regulatory classification “Substandard.” A loan classified as substandard is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the loan. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. • The internally assigned letter grade “D2” corresponds to the regulatory classification “Doubtful.” Loans classified as doubtful have all the weaknesses inherent in a loan classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable or improbable. The Company considers payment history as the best indicator of credit quality for the consumer portfolio. Nonperforming loans in the tables below include loans classified as nonaccrual, loans 90 days or more past due and loans modified in a TDR 90 days or more past due. The following tables, which exclude loans held for sale, illustrate the credit quality indicators associated with the Company’s loans, by loan class. Commercial March 31, 2020 Recorded Investment of Term Loans by Origination Year 2020 2019 2018 2017 2016 Prior Recorded Investment of Revolving Loans Recorded Investment of Revolving Loans Converted to Term Loans Total (In Thousands) Commercial, financial and agricultural Pass $ 1,106,835 $ 3,278,768 $ 2,917,757 $ 3,319,000 $ 1,164,840 $ 3,965,678 $ 10,814,825 $ — $ 26,567,703 Special Mention 3 15,162 63,090 101,070 25,458 93,458 331,603 — 629,844 Substandard — 18,569 73,723 17,835 35,367 91,158 304,282 — 540,934 Doubtful 1,328 — 29,107 4,158 20,687 18,860 19,492 — 93,632 Total commercial, financial and agricultural $ 1,108,166 $ 3,312,499 $ 3,083,677 $ 3,442,063 $ 1,246,352 $ 4,169,154 $ 11,470,202 $ — $ 27,832,113 Real estate - construction Pass $ 54,956 $ 598,239 $ 735,319 $ 428,388 $ 103,582 $ 78,487 $ 144,882 $ — $ 2,143,853 Special Mention — — — — 1,486 2,499 — — 3,985 Substandard — 5,637 7,749 — 5,837 4,653 — — 23,876 Doubtful — — — — — — — — — Total real estate - construction $ 54,956 $ 603,876 $ 743,068 $ 428,388 $ 110,905 $ 85,639 $ 144,882 $ — $ 2,171,714 Commercial real estate - mortgage Pass $ 621,191 $ 3,201,350 $ 3,856,095 $ 1,759,006 $ 1,085,493 $ 2,710,254 $ 236,345 $ — $ 13,469,734 Special Mention 2,892 — 103,329 4,361 2,506 67,356 — — 180,444 Substandard — 1,171 8,901 59,215 32,879 85,684 11,897 — 199,747 Doubtful — — 461 — — 3,019 — — 3,480 Total commercial real estate - mortgage $ 624,083 $ 3,202,521 $ 3,968,786 $ 1,822,582 $ 1,120,878 $ 2,866,313 $ 248,242 $ — $ 13,853,405 December 31, 2019 Commercial, Financial and Agricultural Real Estate - Construction Commercial Real Estate - Mortgage (In Thousands) Pass $ 23,319,645 $ 1,979,310 $ 13,547,273 Special Mention 543,928 67 168,679 Substandard 488,813 49,305 134,420 Doubtful 79,852 — 11,106 $ 24,432,238 $ 2,028,682 $ 13,861,478 Consumer March 31, 2020 Recorded Investment of Term Loans by Origination Year 2020 2019 2018 2017 2016 Prior Recorded Investment of Revolving Loans Recorded Investment of Revolving Loans Converted to Term Loans Total (In Thousands) Residential real estate - mortgage Performing $ 508,538 $ 2,609,558 $ 1,388,842 $ 1,398,484 $ 1,503,951 $ 5,883,578 $ — $ — $ 13,292,951 Nonperforming — 776 6,007 11,581 11,055 123,648 — — 153,067 Total residential real estate - mortgage $ 508,538 $ 2,610,334 $ 1,394,849 $ 1,410,065 $ 1,515,006 $ 6,007,226 $ — $ — $ 13,446,018 Equity lines of credit Performing $ — $ — $ — $ — $ — $ — $ 2,571,031 $ 3,670 $ 2,574,701 Nonperforming — — — — — — 36,453 196 36,649 Total equity lines of credit $ — $ — $ — $ — $ — $ — $ 2,607,484 $ 3,866 $ 2,611,350 Equity loans Performing $ 2,004 $ 15,471 $ 14,046 $ 5,886 $ 4,680 $ 178,892 $ — $ — $ 220,979 Nonperforming — — 339 149 — 7,902 — — 8,390 Total equity loans $ 2,004 $ 15,471 $ 14,385 $ 6,035 $ 4,680 $ 186,794 $ — $ — $ 229,369 Credit card Performing $ — $ — $ — $ — $ — $ — $ 999,665 $ — $ 999,665 Nonperforming — — — — — — 23,707 — 23,707 Total credit card $ — $ — $ — $ — $ — $ — $ 1,023,372 $ — $ 1,023,372 Consumer direct Performing $ 239,046 $ 704,151 $ 591,586 $ 168,069 $ 79,114 $ 33,047 $ 438,676 $ — $ 2,253,689 Nonperforming — 4,009 13,092 2,738 878 388 1,251 — 22,356 Total consumer direct $ 239,046 $ 708,160 $ 604,678 $ 170,807 $ 79,992 $ 33,435 $ 439,927 $ — $ 2,276,045 Consumer indirect Performing $ 598,254 $ 1,548,308 $ 1,099,575 $ 468,646 $ 161,401 $ 182,083 $ — $ — $ 4,058,267 Nonperforming — 5,829 13,623 8,482 4,838 4,989 — — 37,761 Total consumer indirect $ 598,254 $ 1,554,137 $ 1,113,198 $ 477,128 $ 166,239 $ 187,072 $ — $ — $ 4,096,028 December 31, 2019 Residential Real Estate -Mortgage Equity Lines of Credit Equity Loans Credit Card Consumer Direct Consumer Indirect (In Thousands) Performing $ 13,381,709 $ 2,553,000 $ 236,122 $ 979,569 $ 2,313,082 $ 3,870,839 Nonperforming 152,245 39,680 8,846 22,796 25,060 41,511 $ 13,533,954 $ 2,592,680 $ 244,968 $ 1,002,365 $ 2,338,142 $ 3,912,350 The following tables present an aging analysis of the Company’s past due loans, excluding loans classified as held for sale. March 31, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Accruing TDRs Total Past Due, Nonaccrual or TDR Not Past Due, Nonaccrual or TDR Total (In Thousands) Commercial, financial and agricultural $ 31,493 $ 7,588 $ 3,013 $ 323,881 $ 1,931 $ 367,906 $ 27,464,207 $ 27,832,113 Real estate – construction 9,356 66 574 13,676 69 23,741 2,147,973 2,171,714 Commercial real estate – mortgage 13,439 5,241 912 114,839 3,333 137,764 13,715,641 13,853,405 Residential real estate – mortgage 67,938 25,187 5,744 147,058 55,116 301,043 13,144,975 13,446,018 Equity lines of credit 16,382 6,244 3,295 33,354 — 59,275 2,552,075 2,611,350 Equity loans 2,636 1,147 293 8,027 22,392 34,495 194,874 229,369 Credit card 13,230 8,932 23,707 — — 45,869 977,503 1,023,372 Consumer direct 34,553 19,738 15,196 7,160 14,898 91,545 2,184,500 2,276,045 Consumer indirect 76,547 24,249 9,040 28,721 — 138,557 3,957,471 4,096,028 Total loans $ 265,574 $ 98,392 $ 61,774 $ 676,716 $ 97,739 $ 1,200,195 $ 66,339,219 $ 67,539,414 December 31, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Accruing TDRs Total Past Due and Impaired Not Past Due or Impaired Total (In Thousands) Commercial, financial and agricultural $ 29,273 $ 16,462 $ 6,692 $ 268,288 $ 1,456 $ 322,171 $ 24,110,067 $ 24,432,238 Real estate – construction 7,603 2 571 8,041 72 16,289 2,012,393 2,028,682 Commercial real estate – mortgage 5,325 5,458 6,576 98,077 3,414 118,850 13,742,628 13,861,478 Residential real estate – mortgage 72,571 21,909 4,641 147,337 57,165 303,623 13,230,331 13,533,954 Equity lines of credit 15,766 6,581 1,567 38,113 — 62,027 2,530,653 2,592,680 Equity loans 2,856 1,028 195 8,651 23,770 36,500 208,468 244,968 Credit card 11,275 9,214 22,796 — — 43,285 959,080 1,002,365 Consumer direct 33,658 20,703 18,358 6,555 12,438 91,712 2,246,430 2,338,142 Consumer indirect 83,966 28,430 9,730 31,781 — 153,907 3,758,443 3,912,350 Total loans $ 262,293 $ 109,787 $ 71,126 $ 606,843 $ 98,315 $ 1,148,364 $ 62,798,493 $ 63,946,857 It is the Company’s policy to classify TDRs that are not accruing interest as nonaccrual loans. It is also the Company’s policy to classify TDR past due loans that are accruing interest as TDRs and not according to their past due status. The tables above reflect this policy. Modifications to borrowers' loan agreements are considered TDRs if a concession is granted for economic or legal reasons related to a borrower’s financial difficulties that otherwise would not be considered. Within each of the Company’s loan classes, TDRs typically involve modification of the loan interest rate to a below market rate or an extension or deferment of the loan. Loans that have been restructured for COVID-19 related hardships and meet certain criteria under the CARES Act are not categorized as TDRs. During the three months ended March 31, 2020 , $5.2 million of TDR modifications included an interest rate concession and $43.6 million of TDR modifications resulted from modifications to the loan’s structure. During the three months ended March 31, 2019 , $4.7 million of TDR modifications included an interest rate concession and $15.8 million of TDR modifications resulted from modifications to the loan’s structure. The following tables present an analysis of the types of loans that were restructured and classified as TDRs, excluding loans classified as held for sale. Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Number of Contracts Post-Modification Outstanding Recorded Investment Number of Contracts Post-Modification Outstanding Recorded Investment (Dollars in Thousands) Commercial, financial and agricultural 10 $ 41,238 3 $ 11,570 Real estate – construction — — — — Commercial real estate – mortgage 2 1,740 — — Residential real estate – mortgage 8 844 20 5,233 Equity lines of credit 1 36 — — Equity loans 1 192 4 176 Credit card — — — — Consumer direct 89 4,762 13 3,519 Consumer indirect — — — — The impact to the allowance for loan losses related to modifications classified as TDRs was approximately $5.3 million and $3.7 million for the three months ended March 31, 2020 and March 31, 2019 , respectively. The Company considers TDRs aged 90 days or more past due, charged off or classified as nonaccrual subsequent to modification, where the loan was not classified as a nonperforming loan at the time of modification, as subsequently defaulted. The following tables provide a summary of initial subsequent defaults that occurred within one year of the restructure date. The tables exclude loans classified as held for sale as of period-end and includes loans no longer in default as of period-end. Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Number of Contracts Recorded Investment at Default Number of Contracts Recorded Investment at Default (Dollars in Thousands) Commercial, financial and agricultural — $ — — $ — Real estate – construction — — — — Commercial real estate – mortgage — — — — Residential real estate – mortgage 1 84 — — Equity lines of credit — — — — Equity loans — — 2 151 Credit card — — — — Consumer direct 4 217 2 15 Consumer indirect — — — — At March 31, 2020 and December 31, 2019 , there were $43.1 million and $43.8 million , respectively, of commitments to lend additional funds to borrowers whose terms have been modified in a TDR. Foreclosure Proceedings OREO totaled $21 million and $22 million at March 31, 2020 and December 31, 2019 , respectively. OREO included $13 million and $14 million of foreclosed residential real estate properties at March 31, 2020 and December 31, 2019 , respectively. As of March 31, 2020 and December 31, 2019 , there were $52 million and $57 million , respectively, of loans secured by residential real estate properties for which formal foreclosure proceedings were in process. |
Loan Sales and Servicing
Loan Sales and Servicing | 3 Months Ended |
Mar. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Loan Sales and Servicing | Loan Sales and Servicing Loans held for sale were $118 million and $112 million at March 31, 2020 and December 31, 2019 , respectively, and were comprised entirely of residential real estate - mortgage loans. The following table summarizes the Company's activity in the loans held for sale portfolio and loan sales, excluding activity related to loans originated for sale in the secondary market. Three Months Ended March 31, 2020 2019 (In Thousands) Loans transferred from held for investment to held for sale $ — $ 1,196,883 Charge-offs on loans recognized at transfer from held for investment to held for sale — — Loans and loans held for sale sold — 144,674 The following table summarizes the Company's sales of loans originated for sale in the secondary market. Three Months Ended March 31, 2020 2019 (In Thousands) Residential real estate loans originated for sale in the secondary market sold (1) $ 203,830 $ 119,722 Net gains recognized on sales of residential real estate loans originated for sale in the secondary market (2) 8,775 5,135 Servicing fees recognized (2) 2,608 2,672 (1) The Company has retained servicing responsibilities for all loans sold that were originated for sale in the secondary market. (2) Recorded as a component of mortgage banking income in the Company's Unaudited Condensed Consolidated Statements of Income. The following table provides the recorded balance of loans sold with retained servicing and the related MSRs. March 31, 2020 December 31, 2019 (In Thousands) Recorded balance of residential real estate mortgage loans sold with retained servicing (1) $ 4,578,812 $ 4,534,202 MSRs (2) 31,232 42,022 (1) These loans are not included in loans on the Company's Unaudited Condensed Consolidated Balance Sheets. (2) Recorded under the fair value method and included in other assets on the Company's Unaudited Condensed Consolidated Balance Sheets. The fair value of MSRs is significantly affected by mortgage interest rates available in the marketplace, which influence mortgage loan prepayment speeds. In general, during periods of declining rates, the fair value of MSRs declines due to increasing prepayments attributable to increased mortgage-refinance activity. During periods of rising interest rates, the fair value of MSRs generally increases due to reduced refinance activity. The Company maintains a non-qualifying hedging strategy to manage a portion of the risk associated with changes in the fair value of the MSR portfolio. This strategy includes the purchase of various trading securities. The interest income, mark-to-market adjustments and gain or loss from sale activities associated with these securities are expected to economically hedge a portion of the change in the fair value of the MSR portfolio. The following table is an analysis of the activity in the Company’s MSRs. Three Months Ended March 31, 2020 2019 (In Thousands) Carrying value, at beginning of period $ 42,022 $ 51,539 Additions 1,671 1,059 Increase (decrease) in fair value: Due to changes in valuation inputs or assumptions (10,140 ) (2,343 ) Due to other changes in fair value (1) (2,321 ) (2,710 ) Carrying value, at end of period $ 31,232 $ 47,545 (1) Represents the realization of expected net servicing cash flows, expected borrower repayments and the passage of time. See Note 9 , Fair Value Measurements , for additional disclosures related to the assumptions and estimates used in determining fair value of MSRs. At March 31, 2020 and December 31, 2019 , the sensitivity of the current fair value of the residential MSRs to immediate 10% and 20% adverse changes in key economic assumptions are included in the following table: March 31, 2020 December 31, 2019 (Dollars in Thousands) Fair value of MSRs $ 31,232 $ 42,022 Composition of residential loans serviced for others: Fixed rate mortgage loans 98.2 % 98.1 % Adjustable rate mortgage loans 1.8 1.9 Total 100.0 % 100.0 % Weighted average life (in years) 3.7 4.6 Prepayment speed: 16.6 % 16.9 % Effect on fair value of a 10% increase $ (1,888 ) $ (2,906 ) Effect on fair value of a 20% increase (3,578 ) (5,043 ) Weighted average option adjusted spread: 6.2 % 6.4 % Effect on fair value of a 10% increase $ (633 ) $ (1,159 ) Effect on fair value of a 20% increase (1,241 ) (1,812 ) The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of an adverse variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumption; while in reality, changes in one assumption may result in changes to another, which may magnify or counteract the effect of the change. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill A summary of the activity related to the Company’s goodwill follows. (In Thousands) Balance, at December 31, 2018 Goodwill $ 9,835,400 Accumulated impairment losses (4,852,104 ) Goodwill, net at December 31, 2018 4,983,296 Impairment losses (470,000 ) Balance, at December 31, 2019 Goodwill 9,835,400 Accumulated impairment losses (5,322,104 ) Goodwill, net at December 31, 2019 4,513,296 Impairment losses (2,185,000 ) Balance, at March 31, 2020 Goodwill 9,835,400 Accumulated impairment losses (7,507,104 ) Goodwill, net at March 31, 2020 $ 2,328,296 Goodwill is allocated to each of the Company's segments (each a reporting unit: Commercial Banking and Wealth, Retail Banking, and Corporate and Investment Banking). At March 31, 2020 and December 31, 2019 , the goodwill, net of accumulated impairment losses, attributable to each of the Company’s three identified reporting units is as follows: March 31, 2020 December 31, 2019 (In Thousands) Commercial Banking and Wealth $ 1,930,830 $ 2,659,830 Retail Banking 135,660 1,427,660 Corporate and Investment Banking 261,806 425,806 Through March 31, 2020 , the Company had recognized accumulated goodwill impairment losses of $3.2 billion , $2.7 billion , and $883 million within the Commercial Banking and Wealth, Retail Banking, and Corporate and Investment Banking reporting units, respectively. In addition, the Company has previously recognized $784 million of accumulated goodwill impairment losses from reporting units that no longer have a goodwill balance. In accordance with the applicable accounting guidance, the Company performs annual tests to identify potential impairment of goodwill. The tests are required to be performed annually and more frequently if events or circumstances indicate a potential impairment may exist. The Company compares the fair value of each reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The estimated fair value of the reporting unit is determined using a blend of both income and market approaches. The Company completed its annual goodwill impairment test as of October 31, 2019. Additionally, on a quarterly basis, the Company evaluates whether a triggering event has occurred. During the three months ended March 31, 2020 , the Company performed an interim impairment test due to the impact of COVID-19 pandemic on the economic environment. The interim impairment test indicated a goodwill impairment of $164 million within the Corporate and Investment Banking reporting unit, $729 million within the Commercial Banking and Wealth reporting unit, and $1.3 billion within the Retail Banking reporting unit resulting in the Company recording a goodwill impairment charge of $2.2 billion for the three months ended March 31, 2020 . The primary causes of the goodwill impairment were economic and industry conditions, volatility in the market capitalization of U.S. banks, and management's downward revisions to financial projections that resulted in the fair value of the reporting units being less than the carrying value of the reporting units. The fair values of the reporting units are based upon management’s estimates and assumptions. Although management has used the estimates and assumptions it believes to be most appropriate in the circumstances, it should be noted that even relatively minor changes in certain valuation assumptions used in management’s calculations could result in significant differences in the results of the impairment tests. Additionally, the impact of the COVID-19 pandemic is highly uncertain and cannot be predicted. |
Derivatives and Hedging
Derivatives and Hedging | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging The Company is a party to derivative instruments in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates and foreign currency exchange rates. The Company has made an accounting policy decision not to offset derivative fair value amounts under master netting agreements. See Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 , for additional information on the Company's accounting policies related to derivative instruments and hedging activities. For derivatives cleared through central clearing houses the variation margin payments made are legally characterized as settlements of the derivatives. As a result, these variation margin payments are netted against the fair value of the respective derivative contracts in the balance sheet and related disclosures and there is no fair value presented for these contracts. The following table reflects the notional amount and fair value of derivative instruments included on the Company’s Unaudited Condensed Consolidated Balance Sheets on a gross basis. March 31, 2020 December 31, 2019 Fair Value Fair Value Notional Amount Derivative Assets (1) Derivative Liabilities (2) Notional Amount Derivative Assets (1) Derivative Liabilities (2) (In Thousands) Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 3,623,950 $ 12,976 $ 807 $ 3,623,950 $ 10,633 $ 354 Total fair value hedges 12,976 807 10,633 354 Cash flow hedges: Interest rate contracts: Swaps related to commercial loans 10,000,000 — — 10,000,000 — — Swaps related to FHLB advances 120,000 — 4,237 120,000 — 2,864 Foreign currency contracts: Forwards related to currency fluctuations 3,699 — 574 2,597 102 — Total cash flow hedges — 4,811 102 2,864 Total derivatives designated as hedging instruments $ 12,976 $ 5,618 $ 10,735 $ 3,218 Free-standing derivatives not designated as hedging instruments: Interest rate contracts: Forward contracts related to held for sale mortgages $ 508,500 $ 3,891 $ 10,175 $ 289,990 $ 148 $ 514 Option contracts related to mortgage servicing rights — — — 60,000 38 — Interest rate lock commitments 473,795 14,324 1,914 146,941 3,088 — Equity contracts: Purchased equity option related to equity-linked CDs 111,248 2,572 — 152,130 4,460 — Written equity option related to equity-linked CDs 91,806 — 2,141 128,620 — 3,765 Foreign exchange contracts: Forwards and swaps related to commercial loans 572,016 7,574 2,666 443,493 167 3,872 Spots related to commercial loans 7,612 3 5 48,626 7 68 Swap associated with sale of Visa, Inc. Class B shares 138,881 — 5,506 161,904 — 5,904 Futures contracts (3) 2,396,000 — — 2,110,000 — — Trading account assets and liabilities: Interest rate contracts for customers 38,301,554 780,757 187,995 35,503,973 313,573 97,881 Foreign exchange contracts for customers 1,335,719 57,647 54,890 1,039,507 22,766 20,678 Total trading account assets and liabilities 838,404 242,885 336,339 118,559 Total free-standing derivative instruments not designated as hedging instruments $ 866,768 $ 265,292 $ 344,247 $ 132,682 (1) Derivative assets, except for trading account assets that are recorded as a component of trading account assets on the Company's Unaudited Condensed Consolidated Balance Sheets, are recorded in other assets on the Company’s Unaudited Condensed Consolidated Balance Sheets. (2) Derivative liabilities are recorded in accrued expenses and other liabilities on the Company’s Unaudited Condensed Consolidated Balance Sheets. (3) Changes in fair value are cash settled daily; therefore, there is no ending balance at any given reporting period. Hedging Derivatives The Company uses derivative instruments to manage the risk of earnings fluctuations caused by interest rate volatility. For those financial instruments that qualify and are designated as a hedging relationship, either a fair value hedge or cash flow hedge, the effect of interest rate movements on the hedged assets or liabilities will generally be offset by change in fair value of the derivative instrument. Fair Value Hedges The Company enters into fair value hedging relationships using interest rate swaps to mitigate the Company’s exposure to losses in value as interest rates change. Derivative instruments that are used as part of the Company’s interest rate risk management strategy include interest rate swaps that relate to the pricing of specific balance sheet assets and liabilities. Interest rate swaps are used to convert the Company’s fixed rate long-term debt to a variable rate. The critical terms of the interest rate swaps match the terms of the corresponding hedged items. All components of each derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. The Company recognized no gains or losses for the three months ended March 31, 2020 and 2019 , related to hedged firm commitments no longer qualifying as a fair value hedge. At March 31, 2020 , the fair value hedges had a weighted average expected remaining term of 3.1 years . Cash Flow Hedges The Company enters into cash flow hedging relationships using interest rate swaps and options, such as caps and floors, to mitigate exposure to the variability in future cash flows or other forecasted transactions associated with its floating rate assets and liabilities. The Company uses interest rate swaps and options to hedge the repricing characteristics of its floating rate commercial loans and FHLB advances. The Company also uses foreign currency forward contracts to hedge its exposure to fluctuations in foreign currency exchange rates due to a portion of money transfer expense being denominated in foreign currency. All components of each derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. The initial assessment of expected hedge effectiveness is based on regression analysis. The ongoing periodic measures of hedge ineffectiveness are based on the expected change in cash flows of the hedged item caused by changes in the benchmark interest rate. There were no gains or losses reclassified from other comprehensive income because of the discontinuance of cash flow hedges related to certain forecasted transactions that are probable of not occurring for the three months ended March 31, 2020 and 2019 . At March 31, 2020 , cash flow hedges not terminated had a net fair value of $(5) million and a weighted average life of 2.9 years . Net gains of $110.9 million are expected to be reclassified to income over the next 12 months as net settlements occur. The maximum length of time over which the entity is hedging its exposure to the variability in future cash flows for forecasted transactions is 3.9 years . The following table presents the effect of hedging derivative instruments on the Company’s Unaudited Condensed Consolidated Statements of Income. Interest Income Interest Expense Interest and fees on loans Interest on FHLB and other borrowings (In Thousands) Three Months Ended March 31, 2020 Total amounts presented in the unaudited condensed consolidated statements of income $ 715,476 $ 21,176 Gains (losses) on fair value hedging relationships: Interest rate contracts: Amounts related to interest settlements and amortization on derivatives $ — $ 3,365 Recognized on derivatives — 105,944 Recognized on hedged items — (99,171 ) Net income (expense) recognized on fair value hedges $ — $ 10,138 Gain (losses) on cash flow hedging relationships: (1) Interest rate contracts: Realized losses reclassified from AOCI into net income (2) $ 5,459 $ (419 ) Net income (expense) recognized on cash flow hedges $ 5,459 $ (419 ) Three Months Ended March 31, 2019 Total amounts presented in the unaudited condensed consolidated statements of income $ 800,488 $ 37,626 Gains (losses) on fair value hedging relationships: Interest rate contracts: Amounts related to interest settlements and amortization on derivatives $ — $ (2,348 ) Recognized on derivatives — 24,034 Recognized on hedged items — (22,643 ) Net income (expense) recognized on fair value hedges $ — $ (957 ) Gain (losses) on cash flow hedging relationships: (1) Interest rate contracts: Realized losses reclassified from AOCI into net income (2) $ (1,210 ) $ (169 ) Net income (expense) recognized on cash flow hedges $ (1,210 ) $ (169 ) (1) See Note 10 , Comprehensive Income , for gain or loss recognized for cash flow hedges in accumulated other comprehensive income. (2) Pre-tax The following tables present the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities on the Company's Unaudited Condensed Consolidated Balance Sheets in fair value hedging relationships. March 31, 2020 Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Liabilities Carrying Amount of Hedged Liabilities Hedged Items Currently Designated Hedged Items No Longer Designated (In Thousands) FHLB and other borrowings $ 3,484,746 $ 124,221 $ 1,335 December 31, 2019 Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Liabilities Carrying Amount of Hedged Liabilities Hedged Items Currently Designated Hedged Items No Longer Designated (In Thousands) FHLB and other borrowings $ 3,483,177 $ 25,092 $ 1,883 Derivatives Not Designated As Hedges Derivatives not designated as hedges include those that are entered into as either economic hedges to facilitate client needs or as part of the Company’s overall risk management strategy. Economic hedges are those that do not qualify to be treated as a fair value hedge, cash flow hedge or foreign currency hedge for accounting purposes, but are necessary to economically manage the risk exposure associated with the assets and liabilities of the Company. The Company holds a portfolio of futures, forwards and interest rate lock commitments as well as options related to its equity-linked CDs to mitigate its economic risk exposure. The Company also enters into a variety of interest rate contracts and foreign exchange contracts in its trading activities. See Note 13, Derivatives and Hedging, in the Notes to the December 31, 2019 , Consolidated Financial Statements for a description of the Company's derivatives not designated as hedges. The net gains and losses recorded in the Company's Unaudited Condensed Consolidated Statements of Income from free-standing derivative instruments not designated as hedging instruments are summarized in the following table. Gain (Loss) for the Condensed Consolidated Three Months Ended March 31, Statements of Income Caption 2020 2019 (In Thousands) Futures contracts Mortgage banking income and corporate and correspondent investment sales $ (793 ) $ (579 ) Interest rate contracts: Interest rate lock commitments Mortgage banking income 9,322 1,146 Option contracts related to mortgage servicing rights Mortgage banking income 1,528 294 Forward contracts related to residential mortgage loans held for sale Mortgage banking income (5,907 ) (89 ) Interest rate contracts for customers Corporate and correspondent investment sales 4,137 3,428 Equity contracts: Purchased equity option related to equity-linked CDs Other expense (1,888 ) (1,017 ) Written equity option related to equity-linked CDs Other expense 1,624 996 Foreign currency contracts: Forward and swap contracts related to commercial loans Other income 25,981 2,696 Spot contracts related to commercial loans Other income 771 (502 ) Foreign currency exchange contracts for customers Corporate and correspondent investment sales 4,701 3,851 Derivatives Credit and Market Risks By using derivative instruments, the Company is exposed to credit and market risk. If the counterparty fails to perform, credit risk is equal to the extent of the Company’s fair value gain in a derivative. When the fair value of a derivative instrument contract is positive, this generally indicates that the counterparty owes the Company and, therefore, creates a credit risk for the Company. When the fair value of a derivative instrument contract is negative, the Company owes the counterparty and, therefore, it has no credit risk. The Company minimizes the credit risk in derivative instruments by entering into transactions with high-quality counterparties that are reviewed periodically. Credit losses are also mitigated through collateral agreements and other contract provisions with derivative counterparties. Market risk is the adverse effect that a change in interest rates or implied volatility rates has on the value of a financial instrument. The Company manages the market risk associated with interest rate contracts by establishing and monitoring limits as to the types and degree of risk that may be undertaken. The Company’s derivatives activities are monitored by its Asset/Liability Committee as part of its risk-management oversight. The Company’s Asset/Liability Committee is responsible for mandating various hedging strategies that are developed through its analysis of data from financial simulation models and other internal and industry sources. The resulting hedging strategies are then incorporated into the Company’s overall interest rate risk management and trading strategies. Entering into interest rate swap agreements and options involves not only the risk of dealing with counterparties and their ability to meet the terms of the contracts but also interest rate risk associated with unmatched positions. At March 31, 2020 , interest rate swap agreements and options classified as trading were substantially matched. The Company had credit risk of $838 million related to derivative instruments in the trading account portfolio, which does not take into consideration master netting arrangements or the value of the collateral. There were no credit losses associated with derivative instruments classified as trading for the three months ended March 31, 2020 and 2019 . At March 31, 2020 and December 31, 2019 , there were no material nonperforming derivative positions classified as trading. The Company’s derivative positions designated as hedging instruments are primarily executed in the over-the-counter market. These positions at March 31, 2020 , have credit risk of $13 million , which does not take into consideration master netting arrangements or the value of the collateral. There were no credit losses associated with derivative instruments classified as nontrading for the three months ended March 31, 2020 and 2019 . At March 31, 2020 and December 31, 2019 , there were no nonperforming derivative positions classified as nontrading. As of March 31, 2020 and December 31, 2019 , the Company had recorded the right to reclaim cash collateral of $231 million and $150 million , respectively, within other assets on the Company’s Unaudited Condensed Consolidated Balance Sheets and had recorded the obligation to return cash collateral of $23 million and $12 million , respectively, within deposits on the Company’s Unaudited Condensed Consolidated Balance Sheets. Contingent Features Certain of the Company’s derivative instruments contain provisions that require the Company’s debt maintain a certain credit rating from each of the major credit rating agencies. If the Company’s debt were to fall below this rating, it would be in violation of these provisions, and the counterparties to the derivative instruments could demand immediate and ongoing full overnight collateralization on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position on March 31, 2020 , was $86 million for which the Company has collateral requirements of $84 million in the normal course of business. If the credit risk-related contingent features underlying these agreements had been triggered on March 31, 2020 , the Company’s collateral requirements to its counterparties would increase by $2 million . The aggregate fair value of all derivative instruments with credit risk-related contingent features that were in a liability position on December 31, 2019 , was $47 million for which the Company had collateral requirements of $45 million in the normal course of business. If the credit risk-related contingent features underlying these agreements had been triggered on December 31, 2019 , the Company’s collateral requirements to its counterparties would have increased by $2 million . Netting of Derivative Instruments The Company is party to master netting arrangements with its financial institution counterparties for some of its derivative and hedging activities. The Company does not offset assets and liabilities under these master netting arrangements for financial statement presentation purposes. The master netting arrangements provide for single net settlement of all derivative instrument arrangements, as well as collateral, in the event of default with respect to, or termination of, any one contract with the respective counterparties. Cash collateral is usually posted by the counterparty with a net liability position in accordance with contract thresholds. The following table represents the Company’s total gross derivative instrument assets and liabilities subject to an enforceable master netting arrangement. The derivative instruments the Company has with its customers are not subject to an enforceable master netting arrangement. Gross Amounts Recognized Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amount Presented in the Condensed Consolidated Balance Sheets Financial Instruments Collateral Received/Pledged (1) Cash Collateral Received/ Pledged (1) Net Amount (In Thousands) March 31, 2020 Derivative financial assets: Subject to a master netting arrangement $ 77,191 $ — $ 77,191 $ — $ 5,160 $ 72,031 Not subject to a master netting arrangement 802,553 — 802,553 — — 802,553 Total derivative financial assets $ 879,744 $ — $ 879,744 $ — $ 5,160 $ 874,584 Derivative financial liabilities: Subject to a master netting arrangement $ 230,610 $ — $ 230,610 $ — $ 230,610 $ — Not subject to a master netting arrangement 40,300 — 40,300 — — 40,300 Total derivative financial liabilities $ 270,910 $ — $ 270,910 $ — $ 230,610 $ 40,300 December 31, 2019 Derivative financial assets: Subject to a master netting arrangement $ 41,390 $ — $ 41,390 $ — $ 5,860 $ 35,530 Not subject to a master netting arrangement 313,592 — 313,592 — — 313,592 Total derivative financial assets $ 354,982 $ — $ 354,982 $ — $ 5,860 $ 349,122 Derivative financial liabilities: Subject to a master netting arrangement $ 94,979 $ — $ 94,979 $ — $ 94,979 $ — Not subject to a master netting arrangement 40,921 — 40,921 — — 40,921 Total derivative financial liabilities $ 135,900 $ — $ 135,900 $ — $ 94,979 $ 40,921 (1) The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists, the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. |
Securities Financing Activities
Securities Financing Activities | 3 Months Ended |
Mar. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Securities Financing Activities | Securities Financing Activities Netting of Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase The Company has various financial assets and liabilities that are subject to enforceable master netting agreements or similar agreements. The Company's derivatives that are subject to enforceable master netting agreements or similar transactions are discussed in Note 6 , Derivatives and Hedging . The Company enters into agreements under which it purchases or sells securities subject to an obligation to resell or repurchase the same or similar securities. Securities purchased under agreements to resell and securities sold under agreements to repurchase are generally accounted for as collateralized financing transactions and recorded at the amounts at which the securities were purchased or sold plus accrued interes t. The securities pledged as collateral are generally U.S. Treasury securities and other U.S. government agency securities and mortgage-backed securities. Securities purchased under agreements to resell and securities sold under agreements to repurchase are governed by a MRA. Under the terms of the MRA, all transactions between the Company and the counterparty constitute a single business relationship such that in the event of default, the nondefaulting party is entitled to set off claims and apply property held by that party in respect of any transaction against obligations owed. Any payments, deliveries, or other transfers may be applied against each other and netted. These amounts are limited to the contract asset/liability balance, and accordingly, do not include excess collateral received or pledged. The Company offsets the assets and liabilities under netting arrangements for the balance sheet presentation of securities purchased under agreements to resell and securities sold under agreements to repurchase provided certain criteria are met that permit balance sheet netting. Gross Amounts Recognized Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amount Presented in the Condensed Consolidated Balance Sheets Financial Instruments Collateral Received/Pledged (1) Cash Collateral Received/ Pledged (1) Net Amount (In Thousands) March 31, 2020 Securities purchased under agreements to resell: Subject to a master netting arrangement $ 9,227,506 $ 8,982,090 $ 245,416 $ 245,416 $ — $ — Securities sold under agreements to repurchase: Subject to a master netting arrangement $ 9,391,874 $ 8,982,090 $ 409,784 $ 409,784 $ — $ — December 31, 2019 Securities purchased under agreements to resell: Subject to a master netting arrangement $ 656,504 $ 477,590 $ 178,914 $ 178,914 $ — $ — Securities sold under agreements to repurchase: Subject to a master netting arrangement $ 650,618 $ 477,590 $ 173,028 $ 173,028 $ — $ — (1) The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists, the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. Collateral Associated with Securities Financing Activities Securities sold under agreements to repurchase are accounted for as secured borrowings. The following table presents the Company's related activity, by collateral type and remaining contractual maturity. Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 days 30 - 90 days Greater Than 90 days Total (In Thousands) March 31, 2020 Securities sold under agreements to repurchase: U.S. Treasury and other U.S. government agencies $ 3,734,955 $ 1,838,089 $ 1,476,830 $ 2,342,000 $ 9,391,874 Mortgage-backed securities — — — — — Total $ 3,734,955 $ 1,838,089 $ 1,476,830 $ 2,342,000 $ 9,391,874 December 31, 2019 Securities sold under agreements to repurchase: U.S. Treasury and other U.S. government agencies $ 321,310 $ — $ — $ 305,750 $ 627,060 Mortgage-backed securities — — 23,558 — 23,558 Total $ 321,310 $ — $ 23,558 $ 305,750 $ 650,618 In the event of a significant decline in fair value of the collateral pledged for the securities sold under agreements to repurchase, the Company would be required to provide additional collateral. The Company minimizes the risk by monitoring the liquidity and credit quality of the collateral, as well as the maturity profile of the transactions. At March 31, 2020 , the fair value of collateral received related to securities purchased under agreements to resell was $9.4 billion and the fair value of collateral pledged for securities sold under agreements to repurchase was $10.2 billion . At December 31, 2019 , the fair value of collateral received related to securities purchased under agreements to resell was $648 million and the fair value of collateral pledged for securities sold under agreements to repurchase was $644 million . |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Commitments to Extend Credit & Standby and Commercial Letters of Credit The following represents the Company’s commitments to extend credit, standby letters of credit and commercial letters of credit: March 31, 2020 December 31, 2019 (In Thousands) Commitments to extend credit $ 25,333,070 $ 27,725,965 Standby and commercial letters of credit 1,033,885 996,830 Commitments to extend credit are agreements to lend to customers as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby and commercial letters of credit are commitments issued by the Company to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions, and expire in decreasing amounts with terms ranging from one to four years. The credit risk involved in issuing letters of credit and commitments is essentially the same as that involved in extending loan facilities to customers. The fair value of the letters of credit and commitments typically approximates the fee received from the customer for issuing such commitments. These fees are deferred and are recognized over the commitment period. At March 31, 2020 and December 31, 2019 , the recorded amount of these deferred fees was $8 million and $7 million , respectively. The Company holds various assets as collateral supporting those commitments for which collateral is deemed necessary. At March 31, 2020 , the maximum potential amount of future undiscounted payments the Company could be required to make under outstanding standby letters of credit was $1.0 billion . At March 31, 2020 and December 31, 2019 , the Company had allowance for credit losses related to letters of credit and unfunded commitments recorded in accrued expenses and other liabilities on the Company’s Unaudited Condensed Consolidated Balance Sheet of $101 million and $67 million , respectively. See Note 1, Basis of Presentation , for discussion of the impact of the adoption of ASC 326 on the allowance for credit losses related to letters of credit and unfunded commitments. Loan Sale Recourse The Company has potential recourse related to specific FNMA securitizations. At March 31, 2020 and December 31, 2019 , the amount of potential recourse was $19 million and $18 million , respectively, of which the Company had reserved $690 thousand and $693 thousand which is recorded in accrued expenses and other liabilities on the Company's Unaudited Condensed Consolidated Balance Sheets for the respective periods. The Company also issues standard representations and warranties related to mortgage loan sales to government-sponsored agencies. Although these agreements often do not specify limitations, the Company does not believe that any payments related to these representations and warranties would materially change the financial condition or results of operations of the Company. At March 31, 2020 and December 31, 2019 , the Company had $1.7 million and $1.2 million , respectively, of reserves in accrued expenses and other liabilities on the Company’s Unaudited Condensed Consolidated Balance Sheets related to potential losses from loans sold. Legal and Regulatory Proceedings In the ordinary course of business, the Company is subject to legal proceedings, including claims, litigation, investigations and administrative proceedings, all of which are considered incidental to the normal conduct of business. The Company believes it has substantial defenses to the claims asserted against it in its currently outstanding legal proceedings and, with respect to such legal proceedings, intends to defend itself vigorously. Set forth below are descriptions of certain of the Company’s legal proceedings. In January 2014 , the Bank was named as a defendant in a lawsuit filed in the District Court of Dallas County, Texas, David Bagwell, individually and as Trustee of the David S. Bagwell Trust, et al. v. BBVA USA, et al. , wherein the plaintiffs (who are the borrowers and guarantors of the underlying loans) allege that BBVA USA wrongfully sold their loans to a third party after representing that it would not do so. The plaintiffs seek unspecified monetary relief. Following trial in December 2017 , the jury rendered a verdict in favor of the plaintiffs totaling $98 million . On June 27, 2018 , the court entered a judgment in favor of the plaintiffs in the amount of $96 million , which includes prejudgment interest. The Bank has appealed and will vigorously contest the judgment on appeal. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In October 2016 , BSI was named as a defendant in a putative class action lawsuit filed in the District Court of Harris County, Texas, St. Lucie County Fire District Firefighters' Pension Trust, individually and on behalf of all others similarly situated v. Southwestern Energy Company, et al. , wherein the plaintiffs allege that Southwestern Energy Company, its officers and directors, and the underwriting defendants (including BSI) made inaccurate and misleading statements in the registration statement and prospectus related to a securities offering. The plaintiffs seek unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. The Company and the Bank have been named in two proceedings involving David L. Powell: one that was filed in January 2017 with the Federal Conciliation and Arbitration Labor Board of Mexico City, Mexico, David Lannon Powell Finneran v. BBVA USA Bancshares, Inc., et al. , and one that was filed in April 2018 in the United States District Court for the Northern District of Texas, David L. Powell, et al. v. BBVA USA . Powell alleges discrimination and wrongful termination in both proceedings, and seeks unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In March 2019 , the Company and its subsidiary, Simple Finance Technology Corp., were named as defendants in a putative class action lawsuit filed in the United States District Court for the Northern District of California, Amitahbo Chattopadhyay v. BBVA USA Bancshares, Inc., et al . Plaintiff claims that Simple and the Company only permit United States citizens to open Simple accounts (which are exclusively originated through online channels). Plaintiff alleges that this constitutes alienage discrimination and violations of California's Unruh Act. The Company believes that there are substantial defenses to these claims and intends to defend them vigorously. In July 2019 , the Company was named as a defendant in a putative class action lawsuit filed in the United States District Court for the Northern District of Alabama, Ferguson v. BBVA USA Bancshares, Inc. , wherein the plaintiffs allege certain investment options within the Company’s employee retirement plan violate provisions of ERISA. The plaintiffs seek unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In April 2020 , the Bank was named in a putative class action lawsuit filed in the District Court of Bexar County, Texas styled Zamora-Orduna Realty Group LLC v. BBVA USA , wherein plaintiffs allege the Bank tortiously failed to process certain loan requests submitted in connection with the federal Paycheck Protection Program. The plaintiffs seek an amount not less than $10 million along with other demands for unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. The Company is or may become involved from time to time in information-gathering requests, reviews, investigations and proceedings (both formal and informal) by various governmental regulatory agencies, law enforcement authorities and self-regulatory bodies regarding the Company’s business. Such matters may result in material adverse consequences, including without limitation adverse judgments, settlements, fines, penalties, orders, injunctions, alterations in the Company’s business practices or other actions, and could result in additional expenses and collateral costs, including reputational damage, which could have a material adverse impact on the Company’s business, consolidated financial position, results of operations or cash flows. The Company assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that the Company will incur a loss and the amount of the loss can be reasonably estimated, the Company records a liability in its consolidated financial statements. These legal reserves may be increased or decreased to reflect any relevant developments. Where a loss is not probable or the amount of a probable loss is not reasonably estimable, the Company does not accrue legal reserves. At March 31, 2020 , the Company had accrued legal reserves in the amount of $24 million . Additionally, for those matters where a loss is reasonably possible and the amount of loss is reasonably estimable, the Company estimates the amount of losses that it could incur beyond the accrued legal reserves. Under U.S. GAAP, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote" if “the chance of the future event or events occurring is slight.” For a limited number of legal matters in which the Company is involved, the Company is able to estimate a range of reasonably possible losses in excess of related reserves, if any. Management currently estimates these losses to range from $0 to approximately $76 million . This estimated range of reasonably possible losses is based on information available at March 31, 2020 . The matters underlying the estimated range will change from time to time, and the actual results may vary significantly from this estimate. Those matters for which an estimate is not possible are not included within this estimated range; therefore, this estimated range does not represent the Company’s maximum loss exposure. While the outcome of legal proceedings and the timing of the ultimate resolution are inherently difficult to predict, based on information currently available, advice of counsel and available insurance coverage, the Company believes that it has established adequate legal reserves. Further, based upon available information, the Company is of the opinion that these legal proceedings, individually or in the aggregate, will not have a material adverse effect on the Company’s financial condition or results of operations. However, in the event of unexpected future developments, it is possible that the ultimate resolution of those matters, if unfavorable, may be material to the Company’s results of operations for any particular period, depending, in part, upon the size of the loss or liability imposed and the operating results for the applicable period. Income Tax Review The Company is subject to review and examination from various tax authorities. The Company is currently under examination by a number of states, and has received notices of proposed adjustments related to state income taxes due for prior years. Management believes that adequate provisions for income taxes have been recorded. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements See Note 19, Fair Value Measurements, in the Notes to the December 31, 2019 , Consolidated Financial Statements for a description of valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis. The following tables summarize the financial assets and liabilities measured at fair value on a recurring basis. Fair Value Measurements at the End of the Reporting Period Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs March 31, 2020 (Level 1) (Level 2) (Level 3) (In Thousands) Recurring fair value measurements Assets: Trading account assets: U.S. Treasury and other U.S. government agencies $ 170,378 $ 170,378 $ — $ — State and political subdivisions 348 — 348 — Interest rate contracts 780,757 — 780,757 — Foreign exchange contracts 57,647 — 57,647 — Total trading account assets 1,009,130 170,378 838,752 — Debt securities available for sale: U.S. Treasury and other U.S. government agencies 2,570,313 2,091,237 479,076 — Mortgage-backed securities 1,185,676 — 1,185,676 — Collateralized mortgage obligations 2,588,110 — 2,588,110 — States and political subdivisions 717 — 717 — Total debt securities available for sale 6,344,816 2,091,237 4,253,579 — Loans held for sale 117,752 — 117,752 — Derivative assets: Interest rate contracts 31,191 — 16,867 14,324 Equity contracts 2,572 — 2,572 — Foreign exchange contracts 7,577 — 7,577 — Total derivative assets 41,340 — 27,016 14,324 Other assets: Equity securities 19,990 19,990 — — MSR 31,232 — — 31,232 SBIC 156,400 — — 156,400 Liabilities: Trading account liabilities: Interest rate contracts $ 187,995 $ — $ 187,995 $ — Foreign exchange contracts 54,890 — 54,890 — Total trading account liabilities 242,885 — 242,885 — Derivative liabilities: Interest rate contracts 17,133 — 15,219 1,914 Equity contracts 2,141 — 2,141 — Foreign exchange contracts 3,245 — 3,245 — Total derivative liabilities 22,519 — 20,605 1,914 Fair Value Measurements at the End of the Reporting Period Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2019 (Level 1) (Level 2) (Level 3) (In Thousands) Recurring fair value measurements Assets: Trading account assets: U.S. Treasury and other U.S. government agencies $ 137,637 $ 137,637 $ — $ — Interest rate contracts 313,573 — 313,573 — Foreign exchange contracts 22,766 — 22,766 — Total trading account assets 473,976 137,637 336,339 — Debt securities available for sale: U.S. Treasury and other U.S. government agencies 3,127,525 2,598,471 529,054 — Mortgage-backed securities 1,325,857 — 1,325,857 — Collateralized mortgage obligations 2,781,125 — 2,781,125 — States and political subdivisions 798 — 798 — Total debt securities available for sale 7,235,305 2,598,471 4,636,834 — Loans held for sale 112,058 — 112,058 — Derivative assets: Interest rate contracts 13,907 38 10,781 3,088 Equity contracts 4,460 — 4,460 — Foreign exchange contracts 276 — 276 — Total derivative assets 18,643 38 15,517 3,088 Other assets: Equity securities 19,038 19,038 — — MSR 42,022 — — 42,022 SBIC 119,475 — — 119,475 Liabilities: Trading account liabilities: Interest rate contracts $ 97,881 $ — $ 97,881 $ — Foreign exchange contracts 20,678 — 20,678 — Total trading account liabilities 118,559 — 118,559 — Derivative liabilities: Interest rate contracts 3,732 — 3,732 — Equity contracts 3,765 — 3,765 — Foreign exchange contracts 3,940 — 3,940 — Total derivative liabilities 11,437 — 11,437 — The following tables reconcile the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3). Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three Months Ended March 31, Interest Rate Contracts, net Other Assets - MSR Other Assets - SBIC (In Thousands) Balance, December 31, 2018 $ 2,012 $ 51,539 $ 80,074 Transfers into Level 3 — — — Transfers out of Level 3 — — — Total gains or losses (realized/unrealized): Included in earnings (1) 1,146 (5,053 ) 7,557 Included in other comprehensive income — — — Purchases, issuances, sales and settlements: Purchases — — 5,712 Issuances — 1,059 — Sales — — — Settlements — — — Balance, March 31, 2019 $ 3,158 $ 47,545 $ 93,343 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at March 31, 2019 $ 1,146 $ (5,053 ) $ 7,557 Balance, December 31, 2019 $ 3,088 $ 42,022 $ 119,475 Transfers into Level 3 — — — Transfers out of Level 3 — — — Total gains or losses (realized/unrealized): Included in earnings (1) 9,322 (12,461 ) 27,658 Included in other comprehensive income — — — Purchases, issuances, sales and settlements: Purchases — — 9,267 Issuances — 1,671 — Sales — — — Settlements — — — Balance, March 31, 2020 $ 12,410 $ 31,232 $ 156,400 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at March 31, 2020 $ 9,322 $ (12,461 ) $ 27,658 (1) Included in noninterest income in the Unaudited Condensed Consolidated Statements of Income. Assets Measured at Fair Value on a Nonrecurring Basis Periodically, certain assets may be recorded at fair value on a non-recurring basis. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or write-downs of individual assets due to impairment. The following tables represent those assets that were subject to fair value adjustments during the three months ended March 31, 2020 and 2019 , and still held as of the end of the period, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period. Fair Value Measurements at the End of the Reporting Period Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Gains (Losses) March 31, 2020 (Level 1) (Level 2) (Level 3) Three Months Ended March 31, 2020 (In Thousands) Nonrecurring fair value measurements Assets: OREO $ 21,392 $ — $ — $ 21,392 $ (707 ) Fair Value Measurements at the End of the Reporting Period Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Gains (Losses) March 31, 2019 (Level 1) (Level 2) (Level 3) Three Months Ended March 31, 2019 (In Thousands) Nonrecurring fair value measurements Assets: OREO $ 14,983 $ — $ — $ 14,983 $ (1,973 ) (1) Total gains (losses) represent charge-offs on impaired loans for which adjustments are based on the appraised value of the collateral. The following is a description of the methodologies applied for valuing these assets: OREO – OREO is recorded at the lower of recorded balance or fair value, which is based on appraisals and third-party price opinions, less estimated costs to sell. The fair value is classified as Level 3. The tables below present information about the significant unobservable inputs for material assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring and nonrecurring basis. Quantitative Information about Level 3 Fair Value Measurements Fair Value at Range of Unobservable Inputs March 31, 2020 Valuation Technique Unobservable Input(s) (Weighted Average) (In Thousands) Recurring fair value measurements: Interest rate contracts, net $ 12,410 Discounted cash flow Closing ratios (pull-through) 7.8% - 99.8% (61.6%) Cap grids -0.2% - 2.6% (0.9%) Other assets - MSRs 31,232 Discounted cash flow Option adjusted spread 6.0% - 8.3% (6.2%) Constant prepayment rate or life speed 0.4% - 79.2% (19.4%) Cost to service $65 - $4,000 ($92) Other assets - SBIC investments 156,400 Transaction price Transaction price N/A Nonrecurring fair value measurements: OREO 21,392 Appraised value Appraised value 8.0% (1) (1) Represents discount to appraised value for estimated costs to sell. Quantitative Information about Level 3 Fair Value Measurements Fair Value at Range of Unobservable Inputs December 31, 2019 Valuation Technique Unobservable Input(s) (Weighted Average) (In Thousands) Recurring fair value measurements: Interest rate contracts, net $ 3,088 Discounted cash flow Closing ratios (pull-through) 16.8% - 100.0% (60.1%) Cap grids 0.5% - 2.5% (0.9%) Other assets - MSRs 42,022 Discounted cash flow Option adjusted spread 6.0% - 9.0% (6.4%) Constant prepayment rate or life speed 0.0% - 80.0% (14.6%) Cost to service $65 - $4,000 ($90) Other assets - SBIC investments 119,475 Transaction price Transaction price N/A Nonrecurring fair value measurements: Debt securities held to maturity $ 2,177 Discounted cash flow Prepayment rate 13.7% - 14.7% (14.2%) Default rate 3.1% - 4.9% (4.0%) Loss severity 50.3% - 61.9% (56.1%) Impaired loans 484 Appraised value Appraised value 0.0% - 70.0% (9.7%) OREO 21,583 Appraised value Appraised value 8.0% (1) (1) Represents discount to appraised value for estimated costs to sell. The following provides a description of the sensitivity of the valuation technique to changes in unobservable inputs for recurring fair value measurements. Recurring Fair Value Measurements Using Significant Unobservable Inputs Interest Rate Contracts - Interest Rate Lock Commitments Significant unobservable inputs used in the valuation of interest rate contracts are pull-through and cap grids. Increases or decreases in the pull-through or cap grids will have a corresponding impact in the value of interest rate contracts. Other Assets - MSRs The significant unobservable inputs used in the fair value measurement of MSRs are option-adjusted spreads, constant prepayment rate or life speed, and cost to service assumptions. The impact of prepayments and changes in the option-adjusted spread are based on a variety of underlying inputs. Increases or decreases to the underlying cash flow inputs will have a corresponding impact on the value of the MSR asset. The impact of the costs to service assumption will have a directionally opposite change in the fair value of the MSR asset. Other Assets - SBIC Investments The significant unobservable inputs used in the fair value measurement of SBIC Investments are initially based upon transaction price. Increases or decreases in valuation factors such as recent or proposed purchase or sale of debt or equity of the issuer, pricing by other dealers in similar securities, size of position held, liquidity of the market will have a corresponding impact in the value of SBIC investments. Fair Value of Financial Instruments The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments, excluding financial instruments measured at fair value on a recurring basis, are as follows: March 31, 2020 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (In Thousands) Financial Instruments: Assets: Cash and cash equivalents $ 5,513,268 $ 5,513,268 $ 5,513,268 $ — $ — Debt securities held to maturity 7,878,158 8,267,393 1,415,683 6,220,857 630,853 Loans 67,539,414 67,372,923 — — 67,372,923 Liabilities: Deposits $ 77,234,507 $ 77,257,753 $ — $ 77,257,753 $ — FHLB and other borrowings 3,790,137 3,580,396 — 3,580,396 — Federal funds purchased and securities sold under agreements to repurchase 409,784 409,784 — 409,784 — December 31, 2019 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (In Thousands) Financial Instruments: Assets: Cash and cash equivalents $ 6,938,698 $ 6,938,698 $ 6,938,698 $ — $ — Debt securities held to maturity 6,797,046 6,921,158 1,340,448 4,912,399 668,311 Loans 63,946,857 60,869,662 — — 60,869,662 Liabilities: Deposits $ 74,985,283 $ 75,024,350 $ — $ 75,024,350 $ — FHLB and other borrowings 3,690,044 3,721,949 — 3,721,949 — Federal funds purchased and securities sold under agreements to repurchase 173,028 173,028 — 173,028 — Fair Value Option The Company has elected to apply the fair value option for single family real estate mortgage loans originated for resale in the secondary market. The election allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting. The Company has not elected the fair value option for other loans held for sale primarily because they are not economically hedged using derivative instruments. At both March 31, 2020 and December 31, 2019 , no loans held for sale for which the fair value option was elected were 90 days or more past due or were in nonaccrual. Interest income on mortgage loans held for sale is recognized based on contractual rates and is reflected in interest and fees on loans in the Company's Unaudited Condensed Consolidated Statements of Income. Net gains (losses) of $2.6 million and $245 thousand resulting from changes in fair value of these loans were recorded in noninterest income during the three months ended March 31, 2020 and 2019 , respectively. The Company also had fair value changes on forward contracts related to residential mortgage loans held for sale of approximately $(5.9) million and $(89) thousand for the three months ended March 31, 2020 and 2019 , respectively. An immaterial portion of these amounts was attributable to changes in instrument-specific credit risk. The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential mortgage loans measured at fair value. Aggregate Fair Value Aggregate Unpaid Principal Balance Difference (In Thousands) March 31, 2020 Residential mortgage loans held for sale $ 117,752 $ 111,440 $ 6,312 December 31, 2019 Residential mortgage loans held for sale $ 112,058 $ 108,345 $ 3,713 |
Comprehensive Income
Comprehensive Income | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances arising from nonowner sources. The following summarizes the change in the components of other comprehensive income. Three Months Ended March 31, 2020 2019 Pretax Tax Expense/ (Benefit) After-tax Pretax Tax Expense/ (Benefit) After-tax (In Thousands) Other comprehensive income: Unrealized holding gains arising during period from debt securities available for sale $ 130,943 $ 31,244 $ 99,699 $ 67,768 $ 16,068 $ 51,700 Less: reclassification adjustment for net gains on sale of debt securities in net income 19,139 4,567 14,572 8,958 2,124 6,834 Net change in unrealized gains on debt securities available for sale 111,804 26,677 85,127 58,810 13,944 44,866 Change in unamortized net holding gains on debt securities held to maturity 2,069 494 1,575 2,284 541 1,743 Change in unamortized non-credit related impairment on debt securities held to maturity 155 37 118 482 114 368 Net change in unamortized holding gains on debt securities held to maturity 2,224 531 1,693 2,766 655 2,111 Unrealized holding gains arising during period from cash flow hedge instruments 360,963 86,126 274,837 31,518 7,465 24,053 Change in defined benefit plans 2,301 547 1,754 4,089 970 3,119 Other comprehensive income $ 477,292 $ 113,881 $ 363,411 $ 97,183 $ 23,034 $ 74,149 Activity in accumulated other comprehensive income (loss), net of tax was as follows: Unrealized Gains (Losses) on Debt Securities Available for Sale and Transferred to Held to Maturity Accumulated Gains (Losses) on Cash Flow Hedging Instruments Defined Benefit Plan Adjustment Unamortized Impairment Losses on Debt Securities Held to Maturity Total (In Thousands) Balance, December 31, 2018 $ (158,433 ) $ 6,175 $ (29,495 ) $ (5,095 ) $ (186,848 ) Cumulative effect of adoption of ASUs (1) (25,844 ) (1,040 ) (7,351 ) (1,201 ) (35,436 ) $ (184,277 ) $ 5,135 $ (36,846 ) $ (6,296 ) $ (222,284 ) Other comprehensive income before reclassifications 51,700 23,001 — — 74,701 Amounts reclassified from accumulated other comprehensive income (loss) (5,091 ) 1,052 3,119 368 (552 ) Net current period other comprehensive income 46,609 24,053 3,119 368 74,149 Balance, March 31, 2019 $ (137,668 ) $ 29,188 $ (33,727 ) $ (5,928 ) $ (148,135 ) Balance, December 31, 2019 $ (40,080 ) $ 91,445 $ (46,666 ) $ (5,771 ) $ (1,072 ) Other comprehensive income before reclassifications 99,699 278,675 — — 378,374 Amounts reclassified from accumulated other comprehensive income (loss) (12,997 ) (3,838 ) 1,754 118 (14,963 ) Net current period other comprehensive income 86,702 274,837 1,754 118 363,411 Balance, March 31, 2020 $ 46,622 $ 366,282 $ (44,912 ) $ (5,653 ) $ 362,339 (1) Related to the Company's adoption of ASU 2017-12 and ASU 2018-02 on January 1, 2019. The following table presents information on reclassifications out of accumulated other comprehensive income (loss). Details About Accumulated Other Comprehensive Income (Loss) Components Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) (1) Condensed Consolidated Statements of Income Caption Three Months Ended March 31, 2020 2019 (In Thousands) Unrealized Gains (Losses) on Debt Securities Available for Sale and Transferred to Held to Maturity $ 19,139 $ 8,958 Investment securities gains, net (2,069 ) (2,284 ) Interest on debt securities held to maturity 17,070 6,674 (4,073 ) (1,583 ) Income tax expense $ 12,997 $ 5,091 Net of tax Accumulated Gains (Losses) on Cash Flow Hedging Instruments $ 5,459 $ (1,210 ) Interest and fees on loans (419 ) (169 ) Interest on FHLB and other borrowings 5,040 (1,379 ) (1,202 ) 327 Income tax (expense) benefit $ 3,838 $ (1,052 ) Net of tax Defined Benefit Plan Adjustment $ (2,301 ) $ (4,089 ) (2) 547 970 Income tax benefit $ (1,754 ) $ (3,119 ) Net of tax Unamortized Impairment Losses on Debt Securities Held to Maturity $ (155 ) $ (482 ) Interest on debt securities held to maturity 37 114 Income tax benefit $ (118 ) $ (368 ) Net of tax (1) Amounts in parentheses indicate debits to the Unaudited Condensed Consolidated Statements of Income. (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 17, Benefit Plans, in the Notes to the December 31, 2019, Consolidated Financial Statements for additional details). |
Supplemental Disclosure for Sta
Supplemental Disclosure for Statement of Cash Flows | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure for Statement of Cash Flows | Supplemental Disclosure for Statement of Cash Flows The following table presents the Company’s supplemental disclosures for statement of cash flows. Three Months Ended March 31, 2020 2019 (In Thousands) Supplemental disclosures of cash flow information: Interest paid $ 207,334 $ 194,297 Net income taxes paid 7,208 320 Operating cash flows from operating leases 12,499 13,417 Operating cash flows from finance leases 140 159 Financing cash flows from finance leases 414 386 Supplemental schedule of noncash activities: Transfer of loans and loans held for sale to OREO $ 5,735 $ 6,534 Transfer of loans to loans held for sale — 1,196,883 Right-of-use assets obtained in exchange for lease obligations- operating leases 17,568 22,108 The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company’s Unaudited Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Company's Unaudited Condensed Consolidated Statements of Cash Flows. Three Months Ended March 31, 2020 2019 (In Thousands) Cash and cash equivalents $ 5,513,268 $ 6,008,461 Restricted cash in other assets 306,798 131,378 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 5,820,066 $ 6,139,839 Restricted cash primarily represents cash collateral related to the Company's derivatives as well as amounts restricted for regulatory purposes related to BSI and BBVA Transfer Holdings, Inc. Restricted cash is included in other assets on the Company’s Unaudited Condensed Consolidated Balance Sheets. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s operating segments are based on the Company’s organizational structure. Each segment reflects the manner in which financial information is evaluated by management. The operating segment results include certain overhead allocations and intercompany transactions. All intercompany transactions have been eliminated to determine the consolidated balances. The Company operates primarily in the United States, and, accordingly, revenue and assets outside the United States are not material. There are no individual customers whose attributable revenues exceed 10% of consolidated revenue. The following tables present the segment information for the Company’s existing segments. Three Months Ended March 31, 2020 Commercial Banking and Wealth Retail Banking Corporate and Investment Banking Treasury Corporate Support and Other Consolidated (In Thousands) Net interest income (expense) $ 266,837 $ 295,009 $ 30,779 $ (36,427 ) $ 33,257 $ 589,455 Allocated provision for credit losses 42,184 66,729 92,970 (237 ) 155,345 356,991 Noninterest income 68,535 130,704 40,135 26,202 68,666 334,242 Noninterest expense 174,583 305,258 61,395 4,046 2,263,778 2,809,060 Net income (loss) before income tax expense (benefit) 118,605 53,726 (83,451 ) (14,034 ) (2,317,200 ) (2,242,354 ) Income tax expense (benefit) 24,685 11,494 (17,525 ) (2,947 ) (20,776 ) (5,069 ) Net income (loss) 93,920 42,232 (65,926 ) (11,087 ) (2,296,424 ) (2,237,285 ) Less: net income (loss) attributable to noncontrolling interests 116 — — 396 (11 ) 501 Net income (loss) attributable to BBVA USA Bancshares, Inc. $ 93,804 $ 42,232 $ (65,926 ) $ (11,483 ) $ (2,296,413 ) $ (2,237,786 ) Average assets $ 41,177,867 $ 18,697,233 $ 8,282,036 $ 20,254,208 $ 7,944,769 $ 96,356,113 Three Months Ended March 31, 2019 Commercial Banking and Wealth Retail Banking Corporate and Investment Banking Treasury Corporate Support and Other Consolidated (In Thousands) Net interest income (expense) $ 315,332 $ 349,377 $ 33,818 $ (20,024 ) $ 4,586 $ 683,089 Allocated provision (credit) for loan losses 57,440 103,405 25,930 373 (4,856 ) 182,292 Noninterest income 57,375 111,919 36,517 12,486 39,463 257,760 Noninterest expense 167,968 297,923 39,879 5,589 70,614 581,973 Net income (loss) before income tax expense (benefit) 147,299 59,968 4,526 (13,500 ) (21,709 ) 176,584 Income tax expense (benefit) 30,933 12,593 950 (2,835 ) (6,038 ) 35,603 Net income (loss) 116,366 47,375 3,576 (10,665 ) (15,671 ) 140,981 Less: net income attributable to noncontrolling interests 96 — — 405 55 556 Net income (loss) attributable to BBVA USA Bancshares, Inc. $ 116,270 $ 47,375 $ 3,576 $ (11,070 ) $ (15,726 ) $ 140,425 Average assets $ 40,393,329 $ 18,932,712 $ 8,214,217 $ 17,214,202 $ 8,231,416 $ 92,985,876 The financial information presented was derived from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. This information is based on internal management accounting policies that have been developed to reflect the underlying economics of the businesses. These policies address the methodologies applied and include policies related to funds transfer pricing, cost allocations and capital allocations. Funds transfer pricing was used in the determination of net interest income earned primarily on loans and deposits. The method employed for funds transfer pricing is a matched funding concept whereby lines of business which are fund providers are credited and those that are fund users are charged based on maturity, prepayment and/or repricing characteristics applied on an instrument level. Provision for loan losses is allocated to each segment based on internal management accounting policies for the allowance for loan losses and the related provision which differs from the policies for consolidated purposes. The difference between the consolidated provision for credit losses and the segments' provision for credit losses is reflected in Corporate Support and Other and reflects a current year revision in policy. Costs for centrally managed operations are generally allocated to the lines of business based on the utilization of services provided or other appropriate indicators. Revenue is recorded in the business segment responsible for the related product or service. Fee sharing is recorded to allocate portions of such revenue to other business segments involved in selling to, or providing services to, customers. Results of operations for the business segments reflect these fee sharing allocations. Capital is allocated to the lines of business based upon the underlying risks in each business considering economic and regulatory capital standards. The development and application of these methodologies is a dynamic process. Accordingly, prior period financial results have been revised to reflect management accounting enhancements and changes in the Company's organizational structure. The 2019 segment information has been revised to conform to the 2020 presentation. In addition, unlike financial accounting, there is no authoritative literature for management accounting similar to U.S. GAAP. Consequently, reported results are not necessarily comparable with those presented by other financial institutions. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company enters into various transactions with BBVA that affect the Company’s business and operations. The following discloses the significant transactions between the Company and BBVA during 2020 and 2019 . The Company believes all of the transactions entered into between the Company and BBVA were transacted on terms that were no more or less beneficial to the Company than similar transactions entered into with unrelated market participants, including interest rates and transaction costs. The Company foresees executing similar transactions with BBVA in the future. Derivatives The Company has entered into various derivative contracts as noted below with BBVA as the upstream counterparty. The total notional amount of outstanding derivative contracts between the Company and BBVA are $3.5 billion and $3.4 billion as of March 31, 2020 and December 31, 2019 , respectively. The net fair value of outstanding derivative contracts between the Company and BBVA are detailed below. March 31, 2020 December 31, 2019 (In Thousands) Derivative contracts: Fair value hedges $ (799 ) $ (354 ) Cash flow hedges (574 ) 102 Free-standing derivatives not designated as hedging instruments (60,621 ) (9,688 ) Securities Purchased Under Agreements to Resell/ Securities Sold Under Agreements to Repurchase The Company enters into agreements with BBVA as the counterparty under which it purchases/sells securities subject to an obligation to resell/repurchase the same or similar securities. The following represents the amount of securities purchased under agreement to resell and securities sold under agreement to repurchase where BBVA is the counterparty. March 31, 2020 December 31, 2019 (In Thousands) Securities purchased under agreements to resell $ 138,265 $ 178,914 Securities sold under agreements to repurchase 53,574 16,596 Borrowings BSI, a wholly owned subsidiary of the Company, had a $420 million revolving note and cash subordination agreement with BBVA that was executed on March 16, 2012 , with an original maturity date of March 16, 2018 . On March 16, 2017 , the agreement was amended to increase the available amount to $450 million and the maturity date was extended to March 16, 2023 . On March 16, 2017 , BSI entered into an uncommitted demand facility agreement with BBVA for a revolving loan facility up to $1 billion to be used for trade settlement purposes. BSI has not drawn against this facility in 2019 . At both March 31, 2020 and December 31, 2019 there was no amount outstanding under the revolving note and cash subordination agreement. There was $55 thousand in interest expense related to these agreements for the three months ended March 31, 2020 and $25 thousand interest expense for the three months ended March 31, 2019 and are included in interest on other short-term borrowings within the Company's Unaudited Condensed Consolidated Statements of Income. Service and Referral Agreements The Company and its affiliates entered into or were subject to various service and referral agreements with BBVA and its affiliates. Each of the agreements was done in the ordinary course of business and on market terms. Income associated with these agreements was $4.1 million for both the three months ended March 31, 2020 and 2019 , and is recorded as a component of noninterest income within the Company's Unaudited Condensed Consolidated Statements of Income. Expenses associated with these agreements was $9.9 million and $8.5 million for the three months ended March 31, 2020 and 2019 , respectively, and is recorded as a component of noninterest expense within the Company's Unaudited Condensed Consolidated Statements of Income. Series A Preferred Stock BBVA is the sole holder of the Series A Preferred Stock that the Company issued in December 2015. At both March 31, 2020 and December 31, 2019 , the carrying amount of the Series A Preferred Stock was approximately $229 million . During the three months ended March 31, 2020 and 2019 , the Company paid $4.2 million and $4.5 million , respectively, of preferred stock dividends to BBVA. Loan Sales to Related Parties During the three months ended March 31, 2019 , the Company transferred to loans held for sale and subsequently sold $1.2 billion of commercial loans to BBVA, S.A. New York Branch. The Company recognized a gain on the sale of these loans of $778 thousand . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates in the Preparation of Consolidated Financial Statements | Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, the most significant of which relate to the allowance for credit losses and goodwill impairment. Actual results could differ from those estimates. The extent to which the COVID-19 pandemic impacts the results of operations and financial condition, will depend on future developments, which are highly uncertain and cannot be predicted. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which introduces new guidance for the accounting for credit losses on instruments within its scope. The new approach changes the impairment model for most financial assets, and will require the use of an “expected credit loss” model for financial instruments measured at amortized cost and certain other instruments. This model applies to receivables, loans, debt securities, and off-balance sheet credit exposures. This model requires entities to estimate the lifetime expected credit loss on such instruments and record an allowance that represents the portion of the amortized cost basis that the entity does not expect to collect. This allowance is deducted from the financial asset’s amortized cost basis to present the net amount expected to be collected. The new expected credit loss model also applies to purchased financial assets with credit deterioration, superseding current accounting guidance for such assets. The amended guidance also amends the impairment model for available-for-sale debt securities, requiring entities to determine whether all or a portion of the unrealized loss on such securities is a credit loss, and also eliminating the option for management to consider the length of time a security has been in an unrealized loss position as a factor in concluding whether or not a credit loss exists. The amended model states that an entity will recognize an allowance for credit losses on available-for-sale debt securities, instead of a direct reduction of the amortized cost basis of the investment, as required under current guidance. As a result, entities recognize improvements to estimated credit losses on available-for-sale debt securities immediately in earnings as opposed to in interest income over time. There are also additional disclosure requirements included in this guidance. In November 2018, the FASB issued ASU 2018-19 and in April, May and November 2019 and February 2020, the FASB issued ASU 2019-04, ASU 2019-05, ASU 2019-11, and ASU 2020-02 respectively, which made minor clarifications to the guidance in ASU 2016-13. The Company’s implementation process included loss model development, data sourcing and validation, development of governance processes, development of a qualitative framework, documentation and governance surrounding economic forecast for credit loss purposes, evaluation of technical accounting topics, updates to allowance policies and methodology documentation, development of reporting processes and related internal controls. The Company adopted this ASU, as amended on January 1, 2020 using a modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under this ASU, while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net of tax increase to accumulated deficit of $150.2 million as of January 1, 2020 for the cumulative effect of adopting this ASU. The Company adopted this ASU using the prospective transition approach for debt securities for which other-than -temporary impairment has been recognized prior to January 1, 2020. As a result, the amortized cost basis remained the same before and after the effective date of this ASU. The effective interest rate on these debt securities was not changed. Amounts previously recognized in accumulated other comprehensive income as of January 1, 2020 related to improvements in cash flows expected to be collected will be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after January 1, 2020 will be recorded in earnings when received. The amended guidance in this ASU eliminates the current accounting model for purchased-credit-impaired loans, but requires an allowance to be recognized for purchased-credit-deteriorated assets (those that have experienced more-than-insignificant deterioration in credit quality since origination). The Company had no impact from purchased-credit-deteriorated assets upon adoption. The following table illustrates the impact of ASC 326. January 1, 2020 As Reported Under ASC 326 Pre-ASC Adoption Impact of ASC 326 Adoption (In Thousands) Assets: Allowance for credit losses on debt securities held to maturity $ 1,847 $ — $ 1,847 Allowance for credit losses on loans 1,105,924 920,993 184,931 Liabilities: Allowance for credit losses on letters of credit and unfunded commitments 76,946 66,955 9,991 The Company did not record a material allowance with respect to HTM and AFS securities as the portfolios consist primarily of U.S. Treasury and agency-backed securities that inherently have minimal credit risk. See Note 2 , Debt Securities Available for Sale and Debt Securities Held to Maturity , and Note 3 , Loans and Allowance for Loan Losses , for the required disclosures in accordance with this ASU. Fair Value Measurements In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements . The amendments in this ASU modified the disclosure requirements for fair value measurements in Topic 820, Fair Value Measurements . The Company adopted this ASU on January 1, 2020. The adoption of this standard did not have material impact on the financial condition or results of operation of the Company. See Note 9 , Fair Value Measurements , for the modified disclosure in accordance with this ASU. Internal-Use Software In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. The Company adopted this ASU on January 1, 2020. The adoption of this standard did not have material impact on the financial condition or results of operation of the Company. |
Debt Securities | The investments held within the states and political subdivision caption of debt securities held to maturity relate to private placement transactions underwritten as loans by the Company but that meet the definition of a security within ASC Topic 320, Investments – Debt Securities . As noted in Note 1, Basis of Presentation, the Company adopted ASC 326 on January 1, 2020, which had an immaterial impact on the Company's available for sale debt securities and held to maturity debt securities. The Company records its HTM debt securities at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as AFS when they might be sold before they mature. The Company records its AFS debt securities at fair value with unrealized holding gains and losses reported in other comprehensive income. The Company measures expected credit losses on held to maturity debt securities on a collective basis by major security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The majority of the Company's HTM debt securities portfolio consists of U.S. government entities and agencies which are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies and inherently have minimal risk of nonpayment and therefore has applied a zero credit loss assumption for these securities. Under the revised guidance of ASC 326, if the fair value of a security falls below the amortized cost basis, the security will be evaluated to determine if any of the decline in value is attributable to credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security, and adverse conditions specially related to the security, among other factors. If it is determined that a credit loss exists then an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. If the credit subsequently improves, the allowance is reversed. When the Company intends to sell an impaired AFS debt security or it is more likely than not that the security will be required to be sold prior to recovering the amortized cost basis, the security's amortized cost basis is written down to fair value through income. A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. The Company has elected to not measure an allowance on its accrued interest receivable as a result of the timely reversal of interest receivable deemed uncollectible. Interest accrued but not received for a security placed on nonaccrual is reversed against interest income. |
Loans | Loans Loans that management has the intent and ability to hold for the forseeable future or until maturity or pay-off are considered held-for-investment. Loans are stated at amortized cost, net of the allowance for loan losses. Amortized cost, or the recorded investment, is the principal balance outstanding, adjusted for charge-offs, deferred loan fees and direct costs on originated loans and unamortized premiums or discounts on purchased loans. Accrued interest receivable is reported in other assets on the Company’s Unaudited Condensed Consolidated Balance Sheets. Interest income is accrued on the principal balance outstanding and is recognized on the interest method. Loan fees, net of direct costs and unamortized premiums and discounts are deferred and amortized as an adjustment to the yield of the related loan over the term of the loan and are included as a noncash adjustment in the net cash provided by operating activities in the Company’s Unaudited Condensed Consolidated Statement of Cash Flows. The Company has elected to not measure an allowance on its accrued interest receivable as a result of the timely reversal of interest receivable deemed uncollectible. It is the general policy of the Company to stop accruing interest income and apply subsequent interest payments as principal reductions when any commercial, industrial, commercial real estate or construction loan is 90 days or more past due as to principal or interest and/or the ultimate collection of either is in doubt, unless collection of both principal and interest is assured by way of collateralization, guarantees or other security. Accrual of interest income on consumer loans, including residential real estate loans, is generally suspended when any payment of principal or interest is more than 90 days delinquent or when foreclosure proceedings have been initiated or repossession of the underlying collateral has occurred. When a loan is placed on a nonaccrual status, any interest previously accrued but not collected is reversed against current interest income unless the fair value of the collateral for the loan is sufficient to cover the accrued interest. In general, a loan is returned to accrual status when none of its principal and interest is due and unpaid and the Company expects repayments of the remaining contractual principal and interest or when it is determined to be well secured and in the process of collection. Charge-offs on commercial loans are recognized when available information confirms that some or all of the balance is uncollectible. Consumer loans are subject to mandatory charge-off at a specified delinquency date consistent with regulatory guidelines. In general, charge-offs on consumer loans are recognized at the earlier of the month of liquidation or the month the loan becomes 120 days past due; residential loan deficiencies are charged off in the month the loan becomes 180 days past due; and credit card loans are charged off before the end of the month when the loan becomes 180 days past due with the related interest accrued but not collected reversed against current income. The Company determines past due or delinquency status of a loan based on contractual payment terms. |
Troubled Debt Restructuring | Troubled Debt Restructurings A loan is accounted for as a TDR if the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. A TDR typically involves a modification of terms such as establishment of a below market interest rate, a reduction in the principal amount of the loan, a reduction of accrued interest or an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk. The Company’s policy for measuring the allowance for credit losses on TDRs, including TDRs that have defaulted, is consistent with its policy for other loans held for investment. The Company’s policy for returning nonaccrual TDRs to accrual status is consistent with its return to accrual policy for all other loans. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management uses discounted cash flows, default probabilities and loss severities to calculate the allowance for loan losses. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, gross domestic product, or other relevant factors. The Company has internally developed a macroeconomic forecast which projects over a four-year reasonable and supportable forecast period. Management may change the horizon of the forecast in response to changes in portfolio composition or performance as well as changes in the economic environment. After the forecast period, the Company reverts to long run historical average default probabilities and loss severities using a linear model with a variable reversion speed determined on a portfolio basis, for those portfolios with sufficient history. Economic Forecast: Management selects economic variables it believes to be most relevant based on the composition of the loan portfolio and customer base, including forecasted levels of employment, gross domestic product, real estate price indices, interest rates and corporate bond spreads. The Company uses an internally formulated and approved single baseline economic scenario for the collective estimation. However, management will assess the uncertainty associated with the baseline scenario in each period, and may make adjustments based on alternative scenarios applied through the qualitative framework. Determining the Contractual Term: Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower. While the Company does have contracts with extension or renewal options included, the vast majority are considered unconditionally cancellable. The Company monitors the entire loan portfolio so that risks in the portfolio can be identified on a timely basis and an appropriate allowance maintained. Loan review procedures, including loan grading, periodic credit rescoring and trend analysis of portfolio performance, are utilized by the Company in order to ensure that potential problem loans are identified. Management’s involvement continues throughout the process and includes participation in the work-out process and recovery activity. These formalized procedures are monitored internally and by regulatory agencies. The allowance for credit losses is measured on a collective basis when similar risk characteristics exist. The Company has identified the following portfolio segments: commercial, financial and agricultural; commercial real estate; residential real estate; and consumer. Commercial loans utilize internal risk grades aligned with regulatory classifications to assess risks. Consumer loans utilize credit scoring models as the basis for assessing risk of consumer borrowers. The Company estimates the present value of cash shortfalls resulting from the sum of the marginal losses occurring in each time period, on an annual basis, over the remaining life of the loan. The marginal losses are derived from the projection of principal balance, inclusive of principal cash flow and prepayment schedules, and parameters reflecting the severity of losses (LGD) in the case of default that is given by the marginal probability of default (Marginal PD) for each period of the portfolio’s lifetime. The Company also includes the considerations of a forecasted macroeconomic scenario by adjusting the PDs and LGDs applied, with econometric models dependent on the aforementioned correlated macroeconomic variables included in the forecasted scenarios. The allowance for credit losses on loans that do not share similar risk characteristics are estimated on an individual basis. Individual evaluations are typically performed for nonaccrual loans and certain accruing loans, based on dollar thresholds. These loans receive specific reserves allocated based on the present value of the loan's expected future cash flows, discounted at the loan's original effective rate, except where foreclosure or liquidation is probable or when the cash flows are predominately dependent on the value of the collateral. In these circumstances, impairment is measured based upon the fair value less cost to sell of the collateral. The Company adjusts the loss estimates described above when it is determined that expected credit losses may not have been captured in the loss estimates. To adjust the loss estimates, the Company considers qualitative factors such as changes in risk profile/composition; current economic and business conditions and uncertainty of outlook, potentially including alternative economic scenarios; limitations in the data or models used in the collective estimation; credit risk management practices; and other external/environmental factors. In order to estimate an allowance for credit losses on letters of credit and unfunded commitments, the Company uses a process consistent with that used in developing the allowance for loan losses. The Company estimates future fundings of current, noncancellable, unfunded commitments based on historical funding experience of these commitments before default and adjusted based on historical cancellations. Allowance for loan loss factors, which are based on product and loan grade, and are consistent with the factors used for portfolio loans, are applied to these funding estimates and discounted to the present value to arrive at the reserve balance. The allowance for credit losses on letters of credit and unfunded commitments is recognized in accrued expenses and other liabilities on the Company’s Unaudited Condensed Consolidated Balance Sheets with changes recognized within noninterest expense in the Company’s Unaudited Condensed Consolidated Statements of Income. See Note 8 , Commitments, Contingencies and Guarantees for additional information. |
Derivatives and Hedging | The Company has made an accounting policy decision not to offset derivative fair value amounts under master netting agreements. |
Securities purchased under agreements to resell and securities sold under agreements to repurchase | Securities purchased under agreements to resell and securities sold under agreements to repurchase are governed by a MRA. Under the terms of the MRA, all transactions between the Company and the counterparty constitute a single business relationship such that in the event of default, the nondefaulting party is entitled to set off claims and apply property held by that party in respect of any transaction against obligations owed. Any payments, deliveries, or other transfers may be applied against each other and netted. These amounts are limited to the contract asset/liability balance, and accordingly, do not include excess collateral received or pledged. The Company offsets the assets and liabilities under netting arrangements for the balance sheet presentation of securities purchased under agreements to resell and securities sold under agreements to repurchase provided certain criteria are met that permit balance sheet netting. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of ASC 326 impact | The following table illustrates the impact of ASC 326. January 1, 2020 As Reported Under ASC 326 Pre-ASC Adoption Impact of ASC 326 Adoption (In Thousands) Assets: Allowance for credit losses on debt securities held to maturity $ 1,847 $ — $ 1,847 Allowance for credit losses on loans 1,105,924 920,993 184,931 Liabilities: Allowance for credit losses on letters of credit and unfunded commitments 76,946 66,955 9,991 |
Debt Securities Available for_2
Debt Securities Available for Sale and Debt Securities Held to Maturity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of adjusted cost and approximate fair value of investment securities available for sale and investments held to maturity | The following tables present the adjusted cost and approximate fair value of debt securities available for sale and debt securities held to maturity. March 31, 2020 Gross Unrealized Amortized Cost Gains Losses Fair Value (In Thousands) Debt securities available for sale: U.S. Treasury and other U.S. government agencies $ 2,534,159 $ 62,833 $ 26,679 $ 2,570,313 Agency mortgage-backed securities 1,173,282 24,195 11,801 1,185,676 Agency collateralized mortgage obligations 2,541,103 50,649 3,642 2,588,110 States and political subdivisions 686 31 — 717 Total $ 6,249,230 $ 137,708 $ 42,122 $ 6,344,816 Debt securities held to maturity: U.S. Treasury and other U.S. government agencies $ 1,288,246 $ 127,437 $ — $ 1,415,683 Collateralized mortgage obligations: Agency 5,959,454 261,403 — 6,220,857 Non-agency 35,930 4,490 2,182 38,238 Asset-backed securities and other 51,503 1,423 4,230 48,696 States and political subdivisions (1) 543,025 8,536 7,642 543,919 Total $ 7,878,158 $ 403,289 $ 14,054 $ 8,267,393 (1) The Company recorded an allowance of $2 million , at March 31, 2020 , related to state and political subdivisions, which is not included in the table above. December 31, 2019 Gross Unrealized Amortized Cost Gains Losses Fair Value (In Thousands) Debt securities available for sale: U.S. Treasury and other U.S. government agencies $ 3,145,331 $ 16,888 $ 34,694 $ 3,127,525 Agency mortgage-backed securities 1,322,432 12,444 9,019 1,325,857 Agency collateralized mortgage obligations 2,783,003 7,744 9,622 2,781,125 States and political subdivisions 757 41 — 798 Total $ 7,251,523 $ 37,117 $ 53,335 $ 7,235,305 Debt securities held to maturity: U.S. Treasury and other U.S. government agencies $ 1,287,049 $ 53,399 $ — $ 1,340,448 Collateralized mortgage obligations: Agency 4,846,862 82,105 16,568 4,912,399 Non-agency 37,705 5,923 1,154 42,474 Asset-backed securities and other 52,355 1,266 2,017 51,604 States and political subdivisions 573,075 8,652 7,494 574,233 Total $ 6,797,046 $ 151,345 $ 27,233 $ 6,921,158 |
Schedule of fair value and gross unrealized losses of available for sale and held to maturity securities that were in a loss position | The following tables disclose the fair value and the gross unrealized losses of the Company’s available for sale debt securities that were in a loss position at March 31, 2020 and December 31, 2019 , for which an allowance for credit losses has not been recorded at March 31, 2020 . This information is aggregated by investment category and the length of time the individual securities have been in an unrealized loss position. March 31, 2020 Securities in a loss position for less than 12 months Securities in a loss position for 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In Thousands) Debt securities available for sale: U.S. Treasury and other U.S. government agencies $ 257,286 $ 57 $ 385,446 $ 26,622 $ 642,732 $ 26,679 Agency mortgage-backed securities 277,545 3,473 276,708 8,328 554,253 11,801 Agency collateralized mortgage obligations 94,112 111 346,121 3,531 440,233 3,642 Total $ 628,943 $ 3,641 $ 1,008,275 $ 38,481 $ 1,637,218 $ 42,122 December 31, 2019 Securities in a loss position for less than 12 months Securities in a loss position for 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In Thousands) Debt securities available for sale: U.S. Treasury and other U.S. government agencies $ 59,496 $ 208 $ 819,360 $ 34,486 $ 878,856 $ 34,694 Agency mortgage-backed securities 245,191 851 592,312 8,168 837,503 9,019 Agency collateralized mortgage obligations 880,485 4,768 579,679 4,854 1,460,164 9,622 Total $ 1,185,172 $ 5,827 $ 1,991,351 $ 47,508 $ 3,176,523 $ 53,335 |
Schedule of allowance for credit losses for debt securities held to maturity | The following table presents the activity in the allowance for debt securities held to maturity losses as of March 31, 2020 . Held to Maturity Debt Securities (In Thousands) Three months ended March 31, 2020 Allowance for debt securities held to maturity losses: Balance at beginning of period $ — Impact of adopting ASC 326 1,847 Provision for credit losses 45 Securities charged off — Recoveries — Balance at end of period $ 1,892 |
Schedule of debt securities held to maturity through credit ratings | The Company monitors the credit quality of its HTM debt securities through credit ratings. The following table presents the amortized cost of HTM debt securities, as of March 31, 2020 , aggregated by credit quality indicator. March 31, 2020 Range of Ratings AAA AA+ / A - BBB+ / B- CCC+ / C D NR Total (In Thousands) Debt securities held to maturity: U.S. Treasury and other U.S. government agencies $ 1,288,246 $ — $ — $ — $ — $ — $ 1,288,246 Collateralized mortgage obligations: Agency 5,959,454 — — — — — 5,959,454 Non-agency 75 11,515 10,770 6,095 3,160 4,315 35,930 Asset-backed securities and other — 50,288 330 803 — 82 51,503 States and political subdivisions — 337,789 205,236 — — — 543,025 $ 7,247,775 $ 399,592 $ 216,336 $ 6,898 $ 3,160 $ 4,397 $ 7,878,158 |
Schedule of investments classified by contractual maturity date | The contractual maturities of the securities portfolios are presented in the following table. March 31, 2020 Amortized Cost Fair Value (In Thousands) Debt securities available for sale: Maturing within one year $ 425,274 $ 426,343 Maturing after one but within five years 1,646,452 1,706,765 Maturing after five but within ten years 21,114 21,833 Maturing after ten years 442,005 416,089 2,534,845 2,571,030 Mortgage-backed securities and collateralized mortgage obligations 3,714,385 3,773,786 Total $ 6,249,230 $ 6,344,816 Debt securities held to maturity: Maturing within one year $ 49,190 $ 50,040 Maturing after one but within five years 1,391,311 1,519,329 Maturing after five but within ten years 272,817 274,289 Maturing after ten years 169,456 164,640 1,882,774 2,008,298 Collateralized mortgage obligations 5,995,384 6,259,095 Total $ 7,878,158 $ 8,267,393 |
Schedule of gross realized gains and losses | The gross realized gains and losses recognized on sales of debt securities available for sale are shown in the table below. Three Months Ended March 31, 2020 2019 (In Thousands) Gross gains $ 19,139 $ 8,958 Gross losses — — Net realized gains $ 19,139 $ 8,958 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of composition of loan portfolio | The following table presents the composition of the loan portfolio. March 31, 2020 December 31, 2019 (In Thousands) Commercial loans: Commercial, financial and agricultural $ 27,832,113 $ 24,432,238 Real estate – construction 2,171,714 2,028,682 Commercial real estate – mortgage 13,853,405 13,861,478 Total commercial loans 43,857,232 40,322,398 Consumer loans: Residential real estate – mortgage 13,446,018 13,533,954 Equity lines of credit 2,611,350 2,592,680 Equity loans 229,369 244,968 Credit card 1,023,372 1,002,365 Consumer direct 2,276,045 2,338,142 Consumer indirect 4,096,028 3,912,350 Total consumer loans 23,682,182 23,624,459 Total loans $ 67,539,414 $ 63,946,857 |
Disclosure of activity in allowance for loan losses during year | The following table, which excludes loans held for sale, presents a summary of the activity in the allowance for loan losses. The portion of the allowance that has not been identified by the Company as related to specific loan categories has been allocated to the individual loan categories on a pro rata basis for purposes of the table below: Commercial, Financial and Agricultural Commercial Real Estate (1) Residential Real Estate (2) Consumer (3) Total (In Thousands) Three months ended March 31, 2020 Allowance for loan losses: Beginning balance, prior to adoption of ASC 326 $ 408,197 $ 118,633 $ 99,089 $ 295,074 $ 920,993 Impact of adopting ASC 326 18,389 (35,034 ) 47,390 154,186 184,931 Beginning balance, after adoption of ASC 326 426,586 83,599 146,479 449,260 1,105,924 Provision for loan losses 140,413 24,548 7,032 184,953 356,946 Loans charged-off (24,207 ) (87 ) (1,999 ) (115,866 ) (142,159 ) Loan recoveries 5,193 173 1,423 23,572 30,361 Net charge-offs (19,014 ) 86 (576 ) (92,294 ) (111,798 ) Ending balance $ 547,985 $ 108,233 $ 152,935 $ 541,919 $ 1,351,072 Three months ended March 31, 2019 Allowance for loan losses: Beginning balance $ 393,315 $ 112,437 $ 101,929 $ 277,561 $ 885,242 Provision for loan losses 59,180 4,662 2,183 116,267 182,292 Loans charged-off (9,503 ) (25 ) (5,012 ) (112,873 ) (127,413 ) Loan recoveries 4,760 1,462 3,589 16,090 25,901 Net charge-offs (4,743 ) 1,437 (1,423 ) (96,783 ) (101,512 ) Ending balance $ 447,752 $ 118,536 $ 102,689 $ 297,045 $ 966,022 (1) Includes commercial real estate – mortgage and real estate – construction loans. (2) Includes residential real estate – mortgage, equity lines of credit and equity loans. (3) Includes credit card, consumer direct and consumer indirect loans. The increase in the allowance for loan losses from January 1, 2020 to March 31, 2020, was primarily driven by the deteriorating economic outlook resulting from the COVID-19 pandemic as well as the impact of declining oil prices. The table below provides a summary of the allowance for loan losses and related loan balances by portfolio at December 31, 2019 . Commercial, Financial and Agricultural Commercial Real Estate (1) Residential Real Estate (2) Consumer (3) Total (In Thousands) December 31, 2019 Ending balance of allowance attributable to loans: Individually evaluated for impairment $ 88,164 $ 13,255 $ 22,775 $ 2,638 $ 126,832 Collectively evaluated for impairment 320,033 105,378 76,314 292,436 794,161 Total allowance for loan losses $ 408,197 $ 118,633 $ 99,089 $ 295,074 $ 920,993 Ending balance of loans: Individually evaluated for impairment $ 238,653 $ 78,301 $ 155,728 $ 13,362 $ 486,044 Collectively evaluated for impairment 24,193,585 15,811,859 16,215,874 7,239,495 63,460,813 Total loans $ 24,432,238 $ 15,890,160 $ 16,371,602 $ 7,252,857 $ 63,946,857 (1) Includes commercial real estate – mortgage and real estate – construction loans. (2) Includes residential real estate – mortgage, equity lines of credit and equity loans. (3) Includes credit card, consumer direct and consumer indirect loans. |
Schedule of nonaccrual financing receivables | The following table presents information on nonaccrual loans, by loan class at March 31, 2020 . March 31, 2020 Nonaccrual Nonaccrual With No Recorded Allowance (In Thousands) Commercial, financial and agricultural $ 323,881 $ 34,522 Real estate – construction 13,676 — Commercial real estate – mortgage 114,839 33,438 Residential real estate – mortgage 147,058 — Equity lines of credit 33,354 — Equity loans 8,027 — Credit card — — Consumer direct 7,160 — Consumer indirect 28,721 — Total loans $ 676,716 $ 67,960 |
Schedule of impaired financing receivables | The following table presents information on individually evaluated impaired loans, by loan class at December 31, 2019 . December 31, 2019 Individually Evaluated Impaired Loans With No Recorded Allowance Individually Evaluated Impaired Loans With a Recorded Allowance Recorded Investment Unpaid Principal Balance Allowance Recorded Investment Unpaid Principal Balance Allowance (In Thousands) Commercial, financial and agricultural $ 51,203 $ 52,991 $ — $ 187,450 $ 249,486 $ 88,164 Real estate – construction — — — 5,972 5,979 850 Commercial real estate – mortgage 46,232 51,286 — 26,097 27,757 12,405 Residential real estate – mortgage — — — 111,623 111,623 8,974 Equity lines of credit — — — 15,466 15,472 10,896 Equity loans — — — 28,639 29,488 2,905 Credit card — — — — — — Consumer direct — — — 11,601 13,596 1,903 Consumer indirect — — — 1,761 1,761 735 Total loans $ 97,435 $ 104,277 $ — $ 388,609 $ 455,162 $ 126,832 The following table presents information on individually impaired loans, by loan class for the three months ended March 31, 2019 . Three Months Ended March 31, 2019 Average Recorded Investment Interest Income Recognized (In Thousands) Commercial, financial and agricultural $ 413,888 $ 963 Real estate – construction 134 2 Commercial real estate – mortgage 82,864 215 Residential real estate – mortgage 106,397 649 Equity lines of credit 15,257 174 Equity loans 31,718 276 Credit card — — Consumer direct 5,559 68 Consumer indirect 364 — Total loans $ 656,181 $ 2,347 |
Schedule of credit quality indicators associated with the Company's loans | The following tables, which exclude loans held for sale, illustrate the credit quality indicators associated with the Company’s loans, by loan class. Commercial March 31, 2020 Recorded Investment of Term Loans by Origination Year 2020 2019 2018 2017 2016 Prior Recorded Investment of Revolving Loans Recorded Investment of Revolving Loans Converted to Term Loans Total (In Thousands) Commercial, financial and agricultural Pass $ 1,106,835 $ 3,278,768 $ 2,917,757 $ 3,319,000 $ 1,164,840 $ 3,965,678 $ 10,814,825 $ — $ 26,567,703 Special Mention 3 15,162 63,090 101,070 25,458 93,458 331,603 — 629,844 Substandard — 18,569 73,723 17,835 35,367 91,158 304,282 — 540,934 Doubtful 1,328 — 29,107 4,158 20,687 18,860 19,492 — 93,632 Total commercial, financial and agricultural $ 1,108,166 $ 3,312,499 $ 3,083,677 $ 3,442,063 $ 1,246,352 $ 4,169,154 $ 11,470,202 $ — $ 27,832,113 Real estate - construction Pass $ 54,956 $ 598,239 $ 735,319 $ 428,388 $ 103,582 $ 78,487 $ 144,882 $ — $ 2,143,853 Special Mention — — — — 1,486 2,499 — — 3,985 Substandard — 5,637 7,749 — 5,837 4,653 — — 23,876 Doubtful — — — — — — — — — Total real estate - construction $ 54,956 $ 603,876 $ 743,068 $ 428,388 $ 110,905 $ 85,639 $ 144,882 $ — $ 2,171,714 Commercial real estate - mortgage Pass $ 621,191 $ 3,201,350 $ 3,856,095 $ 1,759,006 $ 1,085,493 $ 2,710,254 $ 236,345 $ — $ 13,469,734 Special Mention 2,892 — 103,329 4,361 2,506 67,356 — — 180,444 Substandard — 1,171 8,901 59,215 32,879 85,684 11,897 — 199,747 Doubtful — — 461 — — 3,019 — — 3,480 Total commercial real estate - mortgage $ 624,083 $ 3,202,521 $ 3,968,786 $ 1,822,582 $ 1,120,878 $ 2,866,313 $ 248,242 $ — $ 13,853,405 December 31, 2019 Commercial, Financial and Agricultural Real Estate - Construction Commercial Real Estate - Mortgage (In Thousands) Pass $ 23,319,645 $ 1,979,310 $ 13,547,273 Special Mention 543,928 67 168,679 Substandard 488,813 49,305 134,420 Doubtful 79,852 — 11,106 $ 24,432,238 $ 2,028,682 $ 13,861,478 Consumer March 31, 2020 Recorded Investment of Term Loans by Origination Year 2020 2019 2018 2017 2016 Prior Recorded Investment of Revolving Loans Recorded Investment of Revolving Loans Converted to Term Loans Total (In Thousands) Residential real estate - mortgage Performing $ 508,538 $ 2,609,558 $ 1,388,842 $ 1,398,484 $ 1,503,951 $ 5,883,578 $ — $ — $ 13,292,951 Nonperforming — 776 6,007 11,581 11,055 123,648 — — 153,067 Total residential real estate - mortgage $ 508,538 $ 2,610,334 $ 1,394,849 $ 1,410,065 $ 1,515,006 $ 6,007,226 $ — $ — $ 13,446,018 Equity lines of credit Performing $ — $ — $ — $ — $ — $ — $ 2,571,031 $ 3,670 $ 2,574,701 Nonperforming — — — — — — 36,453 196 36,649 Total equity lines of credit $ — $ — $ — $ — $ — $ — $ 2,607,484 $ 3,866 $ 2,611,350 Equity loans Performing $ 2,004 $ 15,471 $ 14,046 $ 5,886 $ 4,680 $ 178,892 $ — $ — $ 220,979 Nonperforming — — 339 149 — 7,902 — — 8,390 Total equity loans $ 2,004 $ 15,471 $ 14,385 $ 6,035 $ 4,680 $ 186,794 $ — $ — $ 229,369 Credit card Performing $ — $ — $ — $ — $ — $ — $ 999,665 $ — $ 999,665 Nonperforming — — — — — — 23,707 — 23,707 Total credit card $ — $ — $ — $ — $ — $ — $ 1,023,372 $ — $ 1,023,372 Consumer direct Performing $ 239,046 $ 704,151 $ 591,586 $ 168,069 $ 79,114 $ 33,047 $ 438,676 $ — $ 2,253,689 Nonperforming — 4,009 13,092 2,738 878 388 1,251 — 22,356 Total consumer direct $ 239,046 $ 708,160 $ 604,678 $ 170,807 $ 79,992 $ 33,435 $ 439,927 $ — $ 2,276,045 Consumer indirect Performing $ 598,254 $ 1,548,308 $ 1,099,575 $ 468,646 $ 161,401 $ 182,083 $ — $ — $ 4,058,267 Nonperforming — 5,829 13,623 8,482 4,838 4,989 — — 37,761 Total consumer indirect $ 598,254 $ 1,554,137 $ 1,113,198 $ 477,128 $ 166,239 $ 187,072 $ — $ — $ 4,096,028 December 31, 2019 Residential Real Estate -Mortgage Equity Lines of Credit Equity Loans Credit Card Consumer Direct Consumer Indirect (In Thousands) Performing $ 13,381,709 $ 2,553,000 $ 236,122 $ 979,569 $ 2,313,082 $ 3,870,839 Nonperforming 152,245 39,680 8,846 22,796 25,060 41,511 $ 13,533,954 $ 2,592,680 $ 244,968 $ 1,002,365 $ 2,338,142 $ 3,912,350 |
Schedule of past due loans | The following tables present an aging analysis of the Company’s past due loans, excluding loans classified as held for sale. March 31, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Accruing TDRs Total Past Due, Nonaccrual or TDR Not Past Due, Nonaccrual or TDR Total (In Thousands) Commercial, financial and agricultural $ 31,493 $ 7,588 $ 3,013 $ 323,881 $ 1,931 $ 367,906 $ 27,464,207 $ 27,832,113 Real estate – construction 9,356 66 574 13,676 69 23,741 2,147,973 2,171,714 Commercial real estate – mortgage 13,439 5,241 912 114,839 3,333 137,764 13,715,641 13,853,405 Residential real estate – mortgage 67,938 25,187 5,744 147,058 55,116 301,043 13,144,975 13,446,018 Equity lines of credit 16,382 6,244 3,295 33,354 — 59,275 2,552,075 2,611,350 Equity loans 2,636 1,147 293 8,027 22,392 34,495 194,874 229,369 Credit card 13,230 8,932 23,707 — — 45,869 977,503 1,023,372 Consumer direct 34,553 19,738 15,196 7,160 14,898 91,545 2,184,500 2,276,045 Consumer indirect 76,547 24,249 9,040 28,721 — 138,557 3,957,471 4,096,028 Total loans $ 265,574 $ 98,392 $ 61,774 $ 676,716 $ 97,739 $ 1,200,195 $ 66,339,219 $ 67,539,414 December 31, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Nonaccrual Accruing TDRs Total Past Due and Impaired Not Past Due or Impaired Total (In Thousands) Commercial, financial and agricultural $ 29,273 $ 16,462 $ 6,692 $ 268,288 $ 1,456 $ 322,171 $ 24,110,067 $ 24,432,238 Real estate – construction 7,603 2 571 8,041 72 16,289 2,012,393 2,028,682 Commercial real estate – mortgage 5,325 5,458 6,576 98,077 3,414 118,850 13,742,628 13,861,478 Residential real estate – mortgage 72,571 21,909 4,641 147,337 57,165 303,623 13,230,331 13,533,954 Equity lines of credit 15,766 6,581 1,567 38,113 — 62,027 2,530,653 2,592,680 Equity loans 2,856 1,028 195 8,651 23,770 36,500 208,468 244,968 Credit card 11,275 9,214 22,796 — — 43,285 959,080 1,002,365 Consumer direct 33,658 20,703 18,358 6,555 12,438 91,712 2,246,430 2,338,142 Consumer indirect 83,966 28,430 9,730 31,781 — 153,907 3,758,443 3,912,350 Total loans $ 262,293 $ 109,787 $ 71,126 $ 606,843 $ 98,315 $ 1,148,364 $ 62,798,493 $ 63,946,857 |
Schedule of troubled debt restructuring loans and subsequent defaults on restructured loans | The following tables provide a summary of initial subsequent defaults that occurred within one year of the restructure date. The tables exclude loans classified as held for sale as of period-end and includes loans no longer in default as of period-end. Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Number of Contracts Recorded Investment at Default Number of Contracts Recorded Investment at Default (Dollars in Thousands) Commercial, financial and agricultural — $ — — $ — Real estate – construction — — — — Commercial real estate – mortgage — — — — Residential real estate – mortgage 1 84 — — Equity lines of credit — — — — Equity loans — — 2 151 Credit card — — — — Consumer direct 4 217 2 15 Consumer indirect — — — — The following tables present an analysis of the types of loans that were restructured and classified as TDRs, excluding loans classified as held for sale. Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Number of Contracts Post-Modification Outstanding Recorded Investment Number of Contracts Post-Modification Outstanding Recorded Investment (Dollars in Thousands) Commercial, financial and agricultural 10 $ 41,238 3 $ 11,570 Real estate – construction — — — — Commercial real estate – mortgage 2 1,740 — — Residential real estate – mortgage 8 844 20 5,233 Equity lines of credit 1 36 — — Equity loans 1 192 4 176 Credit card — — — — Consumer direct 89 4,762 13 3,519 Consumer indirect — — — — |
Loan Sales and Servicing (Table
Loan Sales and Servicing (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Schedule of loans transferred to held for sale and loans sold | The following table summarizes the Company's activity in the loans held for sale portfolio and loan sales, excluding activity related to loans originated for sale in the secondary market. Three Months Ended March 31, 2020 2019 (In Thousands) Loans transferred from held for investment to held for sale $ — $ 1,196,883 Charge-offs on loans recognized at transfer from held for investment to held for sale — — Loans and loans held for sale sold — 144,674 |
Schedule of loan sales and residential mortgage servicing rights | The following table summarizes the Company's sales of loans originated for sale in the secondary market. Three Months Ended March 31, 2020 2019 (In Thousands) Residential real estate loans originated for sale in the secondary market sold (1) $ 203,830 $ 119,722 Net gains recognized on sales of residential real estate loans originated for sale in the secondary market (2) 8,775 5,135 Servicing fees recognized (2) 2,608 2,672 (1) The Company has retained servicing responsibilities for all loans sold that were originated for sale in the secondary market. (2) Recorded as a component of mortgage banking income in the Company's Unaudited Condensed Consolidated Statements of Income. The following table provides the recorded balance of loans sold with retained servicing and the related MSRs. March 31, 2020 December 31, 2019 (In Thousands) Recorded balance of residential real estate mortgage loans sold with retained servicing (1) $ 4,578,812 $ 4,534,202 MSRs (2) 31,232 42,022 (1) These loans are not included in loans on the Company's Unaudited Condensed Consolidated Balance Sheets. (2) Recorded under the fair value method and included in other assets on the Company's Unaudited Condensed Consolidated Balance Sheets. The following table is an analysis of the activity in the Company’s MSRs. Three Months Ended March 31, 2020 2019 (In Thousands) Carrying value, at beginning of period $ 42,022 $ 51,539 Additions 1,671 1,059 Increase (decrease) in fair value: Due to changes in valuation inputs or assumptions (10,140 ) (2,343 ) Due to other changes in fair value (1) (2,321 ) (2,710 ) Carrying value, at end of period $ 31,232 $ 47,545 (1) Represents the realization of expected net servicing cash flows, expected borrower repayments and the passage of time. |
Schedule of sensitivity of current fair value of residential real estate mortgage servicing rights | At March 31, 2020 and December 31, 2019 , the sensitivity of the current fair value of the residential MSRs to immediate 10% and 20% adverse changes in key economic assumptions are included in the following table: March 31, 2020 December 31, 2019 (Dollars in Thousands) Fair value of MSRs $ 31,232 $ 42,022 Composition of residential loans serviced for others: Fixed rate mortgage loans 98.2 % 98.1 % Adjustable rate mortgage loans 1.8 1.9 Total 100.0 % 100.0 % Weighted average life (in years) 3.7 4.6 Prepayment speed: 16.6 % 16.9 % Effect on fair value of a 10% increase $ (1,888 ) $ (2,906 ) Effect on fair value of a 20% increase (3,578 ) (5,043 ) Weighted average option adjusted spread: 6.2 % 6.4 % Effect on fair value of a 10% increase $ (633 ) $ (1,159 ) Effect on fair value of a 20% increase (1,241 ) (1,812 ) |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of activity related to the Company's goodwill | At March 31, 2020 and December 31, 2019 , the goodwill, net of accumulated impairment losses, attributable to each of the Company’s three identified reporting units is as follows: March 31, 2020 December 31, 2019 (In Thousands) Commercial Banking and Wealth $ 1,930,830 $ 2,659,830 Retail Banking 135,660 1,427,660 Corporate and Investment Banking 261,806 425,806 A summary of the activity related to the Company’s goodwill follows. (In Thousands) Balance, at December 31, 2018 Goodwill $ 9,835,400 Accumulated impairment losses (4,852,104 ) Goodwill, net at December 31, 2018 4,983,296 Impairment losses (470,000 ) Balance, at December 31, 2019 Goodwill 9,835,400 Accumulated impairment losses (5,322,104 ) Goodwill, net at December 31, 2019 4,513,296 Impairment losses (2,185,000 ) Balance, at March 31, 2020 Goodwill 9,835,400 Accumulated impairment losses (7,507,104 ) Goodwill, net at March 31, 2020 $ 2,328,296 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amount and fair value of derivative instruments | The following table reflects the notional amount and fair value of derivative instruments included on the Company’s Unaudited Condensed Consolidated Balance Sheets on a gross basis. March 31, 2020 December 31, 2019 Fair Value Fair Value Notional Amount Derivative Assets (1) Derivative Liabilities (2) Notional Amount Derivative Assets (1) Derivative Liabilities (2) (In Thousands) Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 3,623,950 $ 12,976 $ 807 $ 3,623,950 $ 10,633 $ 354 Total fair value hedges 12,976 807 10,633 354 Cash flow hedges: Interest rate contracts: Swaps related to commercial loans 10,000,000 — — 10,000,000 — — Swaps related to FHLB advances 120,000 — 4,237 120,000 — 2,864 Foreign currency contracts: Forwards related to currency fluctuations 3,699 — 574 2,597 102 — Total cash flow hedges — 4,811 102 2,864 Total derivatives designated as hedging instruments $ 12,976 $ 5,618 $ 10,735 $ 3,218 Free-standing derivatives not designated as hedging instruments: Interest rate contracts: Forward contracts related to held for sale mortgages $ 508,500 $ 3,891 $ 10,175 $ 289,990 $ 148 $ 514 Option contracts related to mortgage servicing rights — — — 60,000 38 — Interest rate lock commitments 473,795 14,324 1,914 146,941 3,088 — Equity contracts: Purchased equity option related to equity-linked CDs 111,248 2,572 — 152,130 4,460 — Written equity option related to equity-linked CDs 91,806 — 2,141 128,620 — 3,765 Foreign exchange contracts: Forwards and swaps related to commercial loans 572,016 7,574 2,666 443,493 167 3,872 Spots related to commercial loans 7,612 3 5 48,626 7 68 Swap associated with sale of Visa, Inc. Class B shares 138,881 — 5,506 161,904 — 5,904 Futures contracts (3) 2,396,000 — — 2,110,000 — — Trading account assets and liabilities: Interest rate contracts for customers 38,301,554 780,757 187,995 35,503,973 313,573 97,881 Foreign exchange contracts for customers 1,335,719 57,647 54,890 1,039,507 22,766 20,678 Total trading account assets and liabilities 838,404 242,885 336,339 118,559 Total free-standing derivative instruments not designated as hedging instruments $ 866,768 $ 265,292 $ 344,247 $ 132,682 (1) Derivative assets, except for trading account assets that are recorded as a component of trading account assets on the Company's Unaudited Condensed Consolidated Balance Sheets, are recorded in other assets on the Company’s Unaudited Condensed Consolidated Balance Sheets. (2) Derivative liabilities are recorded in accrued expenses and other liabilities on the Company’s Unaudited Condensed Consolidated Balance Sheets. (3) Changes in fair value are cash settled daily; therefore, there is no ending balance at any given reporting period. |
Schedule of hedging derivative instruments | The following table presents the effect of hedging derivative instruments on the Company’s Unaudited Condensed Consolidated Statements of Income. Interest Income Interest Expense Interest and fees on loans Interest on FHLB and other borrowings (In Thousands) Three Months Ended March 31, 2020 Total amounts presented in the unaudited condensed consolidated statements of income $ 715,476 $ 21,176 Gains (losses) on fair value hedging relationships: Interest rate contracts: Amounts related to interest settlements and amortization on derivatives $ — $ 3,365 Recognized on derivatives — 105,944 Recognized on hedged items — (99,171 ) Net income (expense) recognized on fair value hedges $ — $ 10,138 Gain (losses) on cash flow hedging relationships: (1) Interest rate contracts: Realized losses reclassified from AOCI into net income (2) $ 5,459 $ (419 ) Net income (expense) recognized on cash flow hedges $ 5,459 $ (419 ) Three Months Ended March 31, 2019 Total amounts presented in the unaudited condensed consolidated statements of income $ 800,488 $ 37,626 Gains (losses) on fair value hedging relationships: Interest rate contracts: Amounts related to interest settlements and amortization on derivatives $ — $ (2,348 ) Recognized on derivatives — 24,034 Recognized on hedged items — (22,643 ) Net income (expense) recognized on fair value hedges $ — $ (957 ) Gain (losses) on cash flow hedging relationships: (1) Interest rate contracts: Realized losses reclassified from AOCI into net income (2) $ (1,210 ) $ (169 ) Net income (expense) recognized on cash flow hedges $ (1,210 ) $ (169 ) (1) See Note 10 , Comprehensive Income , for gain or loss recognized for cash flow hedges in accumulated other comprehensive income. (2) Pre-tax |
Schedule of fair value hedging instruments | The following tables present the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities on the Company's Unaudited Condensed Consolidated Balance Sheets in fair value hedging relationships. March 31, 2020 Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Liabilities Carrying Amount of Hedged Liabilities Hedged Items Currently Designated Hedged Items No Longer Designated (In Thousands) FHLB and other borrowings $ 3,484,746 $ 124,221 $ 1,335 December 31, 2019 Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Liabilities Carrying Amount of Hedged Liabilities Hedged Items Currently Designated Hedged Items No Longer Designated (In Thousands) FHLB and other borrowings $ 3,483,177 $ 25,092 $ 1,883 |
Schedule of other derivatives not designated as hedging instruments | The net gains and losses recorded in the Company's Unaudited Condensed Consolidated Statements of Income from free-standing derivative instruments not designated as hedging instruments are summarized in the following table. Gain (Loss) for the Condensed Consolidated Three Months Ended March 31, Statements of Income Caption 2020 2019 (In Thousands) Futures contracts Mortgage banking income and corporate and correspondent investment sales $ (793 ) $ (579 ) Interest rate contracts: Interest rate lock commitments Mortgage banking income 9,322 1,146 Option contracts related to mortgage servicing rights Mortgage banking income 1,528 294 Forward contracts related to residential mortgage loans held for sale Mortgage banking income (5,907 ) (89 ) Interest rate contracts for customers Corporate and correspondent investment sales 4,137 3,428 Equity contracts: Purchased equity option related to equity-linked CDs Other expense (1,888 ) (1,017 ) Written equity option related to equity-linked CDs Other expense 1,624 996 Foreign currency contracts: Forward and swap contracts related to commercial loans Other income 25,981 2,696 Spot contracts related to commercial loans Other income 771 (502 ) Foreign currency exchange contracts for customers Corporate and correspondent investment sales 4,701 3,851 |
Schedule of assets subject to enforceable master netting arrangements | The following table represents the Company’s total gross derivative instrument assets and liabilities subject to an enforceable master netting arrangement. The derivative instruments the Company has with its customers are not subject to an enforceable master netting arrangement. Gross Amounts Recognized Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amount Presented in the Condensed Consolidated Balance Sheets Financial Instruments Collateral Received/Pledged (1) Cash Collateral Received/ Pledged (1) Net Amount (In Thousands) March 31, 2020 Derivative financial assets: Subject to a master netting arrangement $ 77,191 $ — $ 77,191 $ — $ 5,160 $ 72,031 Not subject to a master netting arrangement 802,553 — 802,553 — — 802,553 Total derivative financial assets $ 879,744 $ — $ 879,744 $ — $ 5,160 $ 874,584 Derivative financial liabilities: Subject to a master netting arrangement $ 230,610 $ — $ 230,610 $ — $ 230,610 $ — Not subject to a master netting arrangement 40,300 — 40,300 — — 40,300 Total derivative financial liabilities $ 270,910 $ — $ 270,910 $ — $ 230,610 $ 40,300 December 31, 2019 Derivative financial assets: Subject to a master netting arrangement $ 41,390 $ — $ 41,390 $ — $ 5,860 $ 35,530 Not subject to a master netting arrangement 313,592 — 313,592 — — 313,592 Total derivative financial assets $ 354,982 $ — $ 354,982 $ — $ 5,860 $ 349,122 Derivative financial liabilities: Subject to a master netting arrangement $ 94,979 $ — $ 94,979 $ — $ 94,979 $ — Not subject to a master netting arrangement 40,921 — 40,921 — — 40,921 Total derivative financial liabilities $ 135,900 $ — $ 135,900 $ — $ 94,979 $ 40,921 (1) The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists, the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. |
Schedule of liabilities subject to enforceable master netting arrangements | The following table represents the Company’s total gross derivative instrument assets and liabilities subject to an enforceable master netting arrangement. The derivative instruments the Company has with its customers are not subject to an enforceable master netting arrangement. Gross Amounts Recognized Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amount Presented in the Condensed Consolidated Balance Sheets Financial Instruments Collateral Received/Pledged (1) Cash Collateral Received/ Pledged (1) Net Amount (In Thousands) March 31, 2020 Derivative financial assets: Subject to a master netting arrangement $ 77,191 $ — $ 77,191 $ — $ 5,160 $ 72,031 Not subject to a master netting arrangement 802,553 — 802,553 — — 802,553 Total derivative financial assets $ 879,744 $ — $ 879,744 $ — $ 5,160 $ 874,584 Derivative financial liabilities: Subject to a master netting arrangement $ 230,610 $ — $ 230,610 $ — $ 230,610 $ — Not subject to a master netting arrangement 40,300 — 40,300 — — 40,300 Total derivative financial liabilities $ 270,910 $ — $ 270,910 $ — $ 230,610 $ 40,300 December 31, 2019 Derivative financial assets: Subject to a master netting arrangement $ 41,390 $ — $ 41,390 $ — $ 5,860 $ 35,530 Not subject to a master netting arrangement 313,592 — 313,592 — — 313,592 Total derivative financial assets $ 354,982 $ — $ 354,982 $ — $ 5,860 $ 349,122 Derivative financial liabilities: Subject to a master netting arrangement $ 94,979 $ — $ 94,979 $ — $ 94,979 $ — Not subject to a master netting arrangement 40,921 — 40,921 — — 40,921 Total derivative financial liabilities $ 135,900 $ — $ 135,900 $ — $ 94,979 $ 40,921 (1) The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists, the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. |
Securities Financing Activiti_2
Securities Financing Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Schedule of assets and liabilities subject to enforceable master netting arrangements | Gross Amounts Recognized Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amount Presented in the Condensed Consolidated Balance Sheets Financial Instruments Collateral Received/Pledged (1) Cash Collateral Received/ Pledged (1) Net Amount (In Thousands) March 31, 2020 Securities purchased under agreements to resell: Subject to a master netting arrangement $ 9,227,506 $ 8,982,090 $ 245,416 $ 245,416 $ — $ — Securities sold under agreements to repurchase: Subject to a master netting arrangement $ 9,391,874 $ 8,982,090 $ 409,784 $ 409,784 $ — $ — December 31, 2019 Securities purchased under agreements to resell: Subject to a master netting arrangement $ 656,504 $ 477,590 $ 178,914 $ 178,914 $ — $ — Securities sold under agreements to repurchase: Subject to a master netting arrangement $ 650,618 $ 477,590 $ 173,028 $ 173,028 $ — $ — (1) The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists, the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. |
Schedule of securities sold under agreements to repurchase | The following table presents the Company's related activity, by collateral type and remaining contractual maturity. Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 days 30 - 90 days Greater Than 90 days Total (In Thousands) March 31, 2020 Securities sold under agreements to repurchase: U.S. Treasury and other U.S. government agencies $ 3,734,955 $ 1,838,089 $ 1,476,830 $ 2,342,000 $ 9,391,874 Mortgage-backed securities — — — — — Total $ 3,734,955 $ 1,838,089 $ 1,476,830 $ 2,342,000 $ 9,391,874 December 31, 2019 Securities sold under agreements to repurchase: U.S. Treasury and other U.S. government agencies $ 321,310 $ — $ — $ 305,750 $ 627,060 Mortgage-backed securities — — 23,558 — 23,558 Total $ 321,310 $ — $ 23,558 $ 305,750 $ 650,618 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of commitments to extend credit, standby letters of credit and commercial letters of credit | The following represents the Company’s commitments to extend credit, standby letters of credit and commercial letters of credit: March 31, 2020 December 31, 2019 (In Thousands) Commitments to extend credit $ 25,333,070 $ 27,725,965 Standby and commercial letters of credit 1,033,885 996,830 |
Fair Value of Measurements (Tab
Fair Value of Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of asset and liabilities measure at fair value on a recurring basis | The following tables summarize the financial assets and liabilities measured at fair value on a recurring basis. Fair Value Measurements at the End of the Reporting Period Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs March 31, 2020 (Level 1) (Level 2) (Level 3) (In Thousands) Recurring fair value measurements Assets: Trading account assets: U.S. Treasury and other U.S. government agencies $ 170,378 $ 170,378 $ — $ — State and political subdivisions 348 — 348 — Interest rate contracts 780,757 — 780,757 — Foreign exchange contracts 57,647 — 57,647 — Total trading account assets 1,009,130 170,378 838,752 — Debt securities available for sale: U.S. Treasury and other U.S. government agencies 2,570,313 2,091,237 479,076 — Mortgage-backed securities 1,185,676 — 1,185,676 — Collateralized mortgage obligations 2,588,110 — 2,588,110 — States and political subdivisions 717 — 717 — Total debt securities available for sale 6,344,816 2,091,237 4,253,579 — Loans held for sale 117,752 — 117,752 — Derivative assets: Interest rate contracts 31,191 — 16,867 14,324 Equity contracts 2,572 — 2,572 — Foreign exchange contracts 7,577 — 7,577 — Total derivative assets 41,340 — 27,016 14,324 Other assets: Equity securities 19,990 19,990 — — MSR 31,232 — — 31,232 SBIC 156,400 — — 156,400 Liabilities: Trading account liabilities: Interest rate contracts $ 187,995 $ — $ 187,995 $ — Foreign exchange contracts 54,890 — 54,890 — Total trading account liabilities 242,885 — 242,885 — Derivative liabilities: Interest rate contracts 17,133 — 15,219 1,914 Equity contracts 2,141 — 2,141 — Foreign exchange contracts 3,245 — 3,245 — Total derivative liabilities 22,519 — 20,605 1,914 Fair Value Measurements at the End of the Reporting Period Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2019 (Level 1) (Level 2) (Level 3) (In Thousands) Recurring fair value measurements Assets: Trading account assets: U.S. Treasury and other U.S. government agencies $ 137,637 $ 137,637 $ — $ — Interest rate contracts 313,573 — 313,573 — Foreign exchange contracts 22,766 — 22,766 — Total trading account assets 473,976 137,637 336,339 — Debt securities available for sale: U.S. Treasury and other U.S. government agencies 3,127,525 2,598,471 529,054 — Mortgage-backed securities 1,325,857 — 1,325,857 — Collateralized mortgage obligations 2,781,125 — 2,781,125 — States and political subdivisions 798 — 798 — Total debt securities available for sale 7,235,305 2,598,471 4,636,834 — Loans held for sale 112,058 — 112,058 — Derivative assets: Interest rate contracts 13,907 38 10,781 3,088 Equity contracts 4,460 — 4,460 — Foreign exchange contracts 276 — 276 — Total derivative assets 18,643 38 15,517 3,088 Other assets: Equity securities 19,038 19,038 — — MSR 42,022 — — 42,022 SBIC 119,475 — — 119,475 Liabilities: Trading account liabilities: Interest rate contracts $ 97,881 $ — $ 97,881 $ — Foreign exchange contracts 20,678 — 20,678 — Total trading account liabilities 118,559 — 118,559 — Derivative liabilities: Interest rate contracts 3,732 — 3,732 — Equity contracts 3,765 — 3,765 — Foreign exchange contracts 3,940 — 3,940 — Total derivative liabilities 11,437 — 11,437 — |
Reconciliation of assets measured on a recurring basis using significant unobservable inputs | The following tables reconcile the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3). Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three Months Ended March 31, Interest Rate Contracts, net Other Assets - MSR Other Assets - SBIC (In Thousands) Balance, December 31, 2018 $ 2,012 $ 51,539 $ 80,074 Transfers into Level 3 — — — Transfers out of Level 3 — — — Total gains or losses (realized/unrealized): Included in earnings (1) 1,146 (5,053 ) 7,557 Included in other comprehensive income — — — Purchases, issuances, sales and settlements: Purchases — — 5,712 Issuances — 1,059 — Sales — — — Settlements — — — Balance, March 31, 2019 $ 3,158 $ 47,545 $ 93,343 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at March 31, 2019 $ 1,146 $ (5,053 ) $ 7,557 Balance, December 31, 2019 $ 3,088 $ 42,022 $ 119,475 Transfers into Level 3 — — — Transfers out of Level 3 — — — Total gains or losses (realized/unrealized): Included in earnings (1) 9,322 (12,461 ) 27,658 Included in other comprehensive income — — — Purchases, issuances, sales and settlements: Purchases — — 9,267 Issuances — 1,671 — Sales — — — Settlements — — — Balance, March 31, 2020 $ 12,410 $ 31,232 $ 156,400 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at March 31, 2020 $ 9,322 $ (12,461 ) $ 27,658 (1) Included in noninterest income in the Unaudited Condensed Consolidated Statements of Income. |
Schedule of carrying amounts and estimated fair values within the fair value hierarchy | The following tables represent those assets that were subject to fair value adjustments during the three months ended March 31, 2020 and 2019 , and still held as of the end of the period, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period. Fair Value Measurements at the End of the Reporting Period Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Gains (Losses) March 31, 2020 (Level 1) (Level 2) (Level 3) Three Months Ended March 31, 2020 (In Thousands) Nonrecurring fair value measurements Assets: OREO $ 21,392 $ — $ — $ 21,392 $ (707 ) Fair Value Measurements at the End of the Reporting Period Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Gains (Losses) March 31, 2019 (Level 1) (Level 2) (Level 3) Three Months Ended March 31, 2019 (In Thousands) Nonrecurring fair value measurements Assets: OREO $ 14,983 $ — $ — $ 14,983 $ (1,973 ) (1) Total gains (losses) represent charge-offs on impaired loans for which adjustments are based on the appraised value of the collateral. |
Schedule of fair value measurement inputs | The tables below present information about the significant unobservable inputs for material assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring and nonrecurring basis. Quantitative Information about Level 3 Fair Value Measurements Fair Value at Range of Unobservable Inputs March 31, 2020 Valuation Technique Unobservable Input(s) (Weighted Average) (In Thousands) Recurring fair value measurements: Interest rate contracts, net $ 12,410 Discounted cash flow Closing ratios (pull-through) 7.8% - 99.8% (61.6%) Cap grids -0.2% - 2.6% (0.9%) Other assets - MSRs 31,232 Discounted cash flow Option adjusted spread 6.0% - 8.3% (6.2%) Constant prepayment rate or life speed 0.4% - 79.2% (19.4%) Cost to service $65 - $4,000 ($92) Other assets - SBIC investments 156,400 Transaction price Transaction price N/A Nonrecurring fair value measurements: OREO 21,392 Appraised value Appraised value 8.0% (1) (1) Represents discount to appraised value for estimated costs to sell. Quantitative Information about Level 3 Fair Value Measurements Fair Value at Range of Unobservable Inputs December 31, 2019 Valuation Technique Unobservable Input(s) (Weighted Average) (In Thousands) Recurring fair value measurements: Interest rate contracts, net $ 3,088 Discounted cash flow Closing ratios (pull-through) 16.8% - 100.0% (60.1%) Cap grids 0.5% - 2.5% (0.9%) Other assets - MSRs 42,022 Discounted cash flow Option adjusted spread 6.0% - 9.0% (6.4%) Constant prepayment rate or life speed 0.0% - 80.0% (14.6%) Cost to service $65 - $4,000 ($90) Other assets - SBIC investments 119,475 Transaction price Transaction price N/A Nonrecurring fair value measurements: Debt securities held to maturity $ 2,177 Discounted cash flow Prepayment rate 13.7% - 14.7% (14.2%) Default rate 3.1% - 4.9% (4.0%) Loss severity 50.3% - 61.9% (56.1%) Impaired loans 484 Appraised value Appraised value 0.0% - 70.0% (9.7%) OREO 21,583 Appraised value Appraised value 8.0% (1) (1) Represents discount to appraised value for estimated costs to sell. |
Schedule of fair value by balance sheet location | The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments, excluding financial instruments measured at fair value on a recurring basis, are as follows: March 31, 2020 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (In Thousands) Financial Instruments: Assets: Cash and cash equivalents $ 5,513,268 $ 5,513,268 $ 5,513,268 $ — $ — Debt securities held to maturity 7,878,158 8,267,393 1,415,683 6,220,857 630,853 Loans 67,539,414 67,372,923 — — 67,372,923 Liabilities: Deposits $ 77,234,507 $ 77,257,753 $ — $ 77,257,753 $ — FHLB and other borrowings 3,790,137 3,580,396 — 3,580,396 — Federal funds purchased and securities sold under agreements to repurchase 409,784 409,784 — 409,784 — December 31, 2019 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (In Thousands) Financial Instruments: Assets: Cash and cash equivalents $ 6,938,698 $ 6,938,698 $ 6,938,698 $ — $ — Debt securities held to maturity 6,797,046 6,921,158 1,340,448 4,912,399 668,311 Loans 63,946,857 60,869,662 — — 60,869,662 Liabilities: Deposits $ 74,985,283 $ 75,024,350 $ — $ 75,024,350 $ — FHLB and other borrowings 3,690,044 3,721,949 — 3,721,949 — Federal funds purchased and securities sold under agreements to repurchase 173,028 173,028 — 173,028 — |
Schedule of differences between aggregate fair value and aggregate unpaid principle balance | The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential mortgage loans measured at fair value. Aggregate Fair Value Aggregate Unpaid Principal Balance Difference (In Thousands) March 31, 2020 Residential mortgage loans held for sale $ 117,752 $ 111,440 $ 6,312 December 31, 2019 Residential mortgage loans held for sale $ 112,058 $ 108,345 $ 3,713 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Change in components of other comprehensive income (loss) | The following summarizes the change in the components of other comprehensive income. Three Months Ended March 31, 2020 2019 Pretax Tax Expense/ (Benefit) After-tax Pretax Tax Expense/ (Benefit) After-tax (In Thousands) Other comprehensive income: Unrealized holding gains arising during period from debt securities available for sale $ 130,943 $ 31,244 $ 99,699 $ 67,768 $ 16,068 $ 51,700 Less: reclassification adjustment for net gains on sale of debt securities in net income 19,139 4,567 14,572 8,958 2,124 6,834 Net change in unrealized gains on debt securities available for sale 111,804 26,677 85,127 58,810 13,944 44,866 Change in unamortized net holding gains on debt securities held to maturity 2,069 494 1,575 2,284 541 1,743 Change in unamortized non-credit related impairment on debt securities held to maturity 155 37 118 482 114 368 Net change in unamortized holding gains on debt securities held to maturity 2,224 531 1,693 2,766 655 2,111 Unrealized holding gains arising during period from cash flow hedge instruments 360,963 86,126 274,837 31,518 7,465 24,053 Change in defined benefit plans 2,301 547 1,754 4,089 970 3,119 Other comprehensive income $ 477,292 $ 113,881 $ 363,411 $ 97,183 $ 23,034 $ 74,149 |
Schedule of accumulated other comprehensive income (loss) | Activity in accumulated other comprehensive income (loss), net of tax was as follows: Unrealized Gains (Losses) on Debt Securities Available for Sale and Transferred to Held to Maturity Accumulated Gains (Losses) on Cash Flow Hedging Instruments Defined Benefit Plan Adjustment Unamortized Impairment Losses on Debt Securities Held to Maturity Total (In Thousands) Balance, December 31, 2018 $ (158,433 ) $ 6,175 $ (29,495 ) $ (5,095 ) $ (186,848 ) Cumulative effect of adoption of ASUs (1) (25,844 ) (1,040 ) (7,351 ) (1,201 ) (35,436 ) $ (184,277 ) $ 5,135 $ (36,846 ) $ (6,296 ) $ (222,284 ) Other comprehensive income before reclassifications 51,700 23,001 — — 74,701 Amounts reclassified from accumulated other comprehensive income (loss) (5,091 ) 1,052 3,119 368 (552 ) Net current period other comprehensive income 46,609 24,053 3,119 368 74,149 Balance, March 31, 2019 $ (137,668 ) $ 29,188 $ (33,727 ) $ (5,928 ) $ (148,135 ) Balance, December 31, 2019 $ (40,080 ) $ 91,445 $ (46,666 ) $ (5,771 ) $ (1,072 ) Other comprehensive income before reclassifications 99,699 278,675 — — 378,374 Amounts reclassified from accumulated other comprehensive income (loss) (12,997 ) (3,838 ) 1,754 118 (14,963 ) Net current period other comprehensive income 86,702 274,837 1,754 118 363,411 Balance, March 31, 2020 $ 46,622 $ 366,282 $ (44,912 ) $ (5,653 ) $ 362,339 (1) Related to the Company's adoption of ASU 2017-12 and ASU 2018-02 on January 1, 2019. |
Schedule of reclassifications out of accumulated other comprehensive income | The following table presents information on reclassifications out of accumulated other comprehensive income (loss). Details About Accumulated Other Comprehensive Income (Loss) Components Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) (1) Condensed Consolidated Statements of Income Caption Three Months Ended March 31, 2020 2019 (In Thousands) Unrealized Gains (Losses) on Debt Securities Available for Sale and Transferred to Held to Maturity $ 19,139 $ 8,958 Investment securities gains, net (2,069 ) (2,284 ) Interest on debt securities held to maturity 17,070 6,674 (4,073 ) (1,583 ) Income tax expense $ 12,997 $ 5,091 Net of tax Accumulated Gains (Losses) on Cash Flow Hedging Instruments $ 5,459 $ (1,210 ) Interest and fees on loans (419 ) (169 ) Interest on FHLB and other borrowings 5,040 (1,379 ) (1,202 ) 327 Income tax (expense) benefit $ 3,838 $ (1,052 ) Net of tax Defined Benefit Plan Adjustment $ (2,301 ) $ (4,089 ) (2) 547 970 Income tax benefit $ (1,754 ) $ (3,119 ) Net of tax Unamortized Impairment Losses on Debt Securities Held to Maturity $ (155 ) $ (482 ) Interest on debt securities held to maturity 37 114 Income tax benefit $ (118 ) $ (368 ) Net of tax (1) Amounts in parentheses indicate debits to the Unaudited Condensed Consolidated Statements of Income. (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 17, Benefit Plans, in the Notes to the December 31, 2019, Consolidated Financial Statements for additional details). |
Supplemental Disclosure for S_2
Supplemental Disclosure for Statement of Cash Flows (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow disclosures | The following table presents the Company’s supplemental disclosures for statement of cash flows. Three Months Ended March 31, 2020 2019 (In Thousands) Supplemental disclosures of cash flow information: Interest paid $ 207,334 $ 194,297 Net income taxes paid 7,208 320 Operating cash flows from operating leases 12,499 13,417 Operating cash flows from finance leases 140 159 Financing cash flows from finance leases 414 386 Supplemental schedule of noncash activities: Transfer of loans and loans held for sale to OREO $ 5,735 $ 6,534 Transfer of loans to loans held for sale — 1,196,883 Right-of-use assets obtained in exchange for lease obligations- operating leases 17,568 22,108 |
Schedule of cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company’s Unaudited Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Company's Unaudited Condensed Consolidated Statements of Cash Flows. Three Months Ended March 31, 2020 2019 (In Thousands) Cash and cash equivalents $ 5,513,268 $ 6,008,461 Restricted cash in other assets 306,798 131,378 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 5,820,066 $ 6,139,839 |
Schedule of restricted cash equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company’s Unaudited Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Company's Unaudited Condensed Consolidated Statements of Cash Flows. Three Months Ended March 31, 2020 2019 (In Thousands) Cash and cash equivalents $ 5,513,268 $ 6,008,461 Restricted cash in other assets 306,798 131,378 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 5,820,066 $ 6,139,839 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | The following tables present the segment information for the Company’s existing segments. Three Months Ended March 31, 2020 Commercial Banking and Wealth Retail Banking Corporate and Investment Banking Treasury Corporate Support and Other Consolidated (In Thousands) Net interest income (expense) $ 266,837 $ 295,009 $ 30,779 $ (36,427 ) $ 33,257 $ 589,455 Allocated provision for credit losses 42,184 66,729 92,970 (237 ) 155,345 356,991 Noninterest income 68,535 130,704 40,135 26,202 68,666 334,242 Noninterest expense 174,583 305,258 61,395 4,046 2,263,778 2,809,060 Net income (loss) before income tax expense (benefit) 118,605 53,726 (83,451 ) (14,034 ) (2,317,200 ) (2,242,354 ) Income tax expense (benefit) 24,685 11,494 (17,525 ) (2,947 ) (20,776 ) (5,069 ) Net income (loss) 93,920 42,232 (65,926 ) (11,087 ) (2,296,424 ) (2,237,285 ) Less: net income (loss) attributable to noncontrolling interests 116 — — 396 (11 ) 501 Net income (loss) attributable to BBVA USA Bancshares, Inc. $ 93,804 $ 42,232 $ (65,926 ) $ (11,483 ) $ (2,296,413 ) $ (2,237,786 ) Average assets $ 41,177,867 $ 18,697,233 $ 8,282,036 $ 20,254,208 $ 7,944,769 $ 96,356,113 Three Months Ended March 31, 2019 Commercial Banking and Wealth Retail Banking Corporate and Investment Banking Treasury Corporate Support and Other Consolidated (In Thousands) Net interest income (expense) $ 315,332 $ 349,377 $ 33,818 $ (20,024 ) $ 4,586 $ 683,089 Allocated provision (credit) for loan losses 57,440 103,405 25,930 373 (4,856 ) 182,292 Noninterest income 57,375 111,919 36,517 12,486 39,463 257,760 Noninterest expense 167,968 297,923 39,879 5,589 70,614 581,973 Net income (loss) before income tax expense (benefit) 147,299 59,968 4,526 (13,500 ) (21,709 ) 176,584 Income tax expense (benefit) 30,933 12,593 950 (2,835 ) (6,038 ) 35,603 Net income (loss) 116,366 47,375 3,576 (10,665 ) (15,671 ) 140,981 Less: net income attributable to noncontrolling interests 96 — — 405 55 556 Net income (loss) attributable to BBVA USA Bancshares, Inc. $ 116,270 $ 47,375 $ 3,576 $ (11,070 ) $ (15,726 ) $ 140,425 Average assets $ 40,393,329 $ 18,932,712 $ 8,214,217 $ 17,214,202 $ 8,231,416 $ 92,985,876 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of derivative contracts between the Company and BBVA | The net fair value of outstanding derivative contracts between the Company and BBVA are detailed below. March 31, 2020 December 31, 2019 (In Thousands) Derivative contracts: Fair value hedges $ (799 ) $ (354 ) Cash flow hedges (574 ) 102 Free-standing derivatives not designated as hedging instruments (60,621 ) (9,688 ) The following represents the amount of securities purchased under agreement to resell and securities sold under agreement to repurchase where BBVA is the counterparty. March 31, 2020 December 31, 2019 (In Thousands) Securities purchased under agreements to resell $ 138,265 $ 178,914 Securities sold under agreements to repurchase 53,574 16,596 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accumulated deficit increase, net | $ 11,358,354 | $ 13,386,589 | $ 13,727,537 | $ 13,512,529 | |
Allowance for credit losses on debt securities held to maturity | 1,892 | $ 0 | 0 | ||
Allowance for credit losses on loans | $ 1,351,072 | 920,993 | 920,993 | $ 966,022 | $ 885,242 |
Allowance for credit losses on letters of credit and unfunded commitments | 66,955 | ||||
As Reported Under ASC 326 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on debt securities held to maturity | 1,847 | ||||
Allowance for credit losses on loans | 1,105,924 | 1,105,924 | |||
Allowance for credit losses on letters of credit and unfunded commitments | 76,946 | ||||
Impact of ASC 326 Adoption | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accumulated deficit increase, net | 150,200 | ||||
Allowance for credit losses on debt securities held to maturity | 1,847 | 1,847 | |||
Allowance for credit losses on loans | 184,931 | $ 184,931 | |||
Allowance for credit losses on letters of credit and unfunded commitments | $ 9,991 |
Debt Securities Available for_3
Debt Securities Available for Sale and Debt Securities Held to Maturity - Adjusted cost and fair value of securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Debt securities available for sale: | |||
Available-for-sale securities, amortized cost | $ 6,249,230 | $ 7,251,523 | |
Available-for-sale securities, gross unrealized gain | 137,708 | 37,117 | |
Available-for-sale securities, gross unrealized losses | 42,122 | 53,335 | |
Debt securities available for sale | 6,344,816 | 7,235,305 | |
Debt securities held to maturity: | |||
Held-to-maturity securities, amortized cost | 7,878,158 | 6,797,046 | |
Held-to-maturity securities, gross unrealized gain | 403,289 | 151,345 | |
Held-to-maturity securities, gross unrealized losses | 14,054 | 27,233 | |
Debt securities held to maturity, estimated fair value | 8,267,393 | 6,921,158 | |
Allowance for credit losses on debt securities held to maturity | 1,892 | $ 0 | 0 |
U.S. Treasury and other U.S. government agencies | |||
Debt securities available for sale: | |||
Available-for-sale securities, amortized cost | 2,534,159 | 3,145,331 | |
Available-for-sale securities, gross unrealized gain | 62,833 | 16,888 | |
Available-for-sale securities, gross unrealized losses | 26,679 | 34,694 | |
Debt securities available for sale | 2,570,313 | 3,127,525 | |
Debt securities held to maturity: | |||
Held-to-maturity securities, amortized cost | 1,288,246 | 1,287,049 | |
Held-to-maturity securities, gross unrealized gain | 127,437 | 53,399 | |
Held-to-maturity securities, gross unrealized losses | 0 | 0 | |
Debt securities held to maturity, estimated fair value | 1,415,683 | 1,340,448 | |
Agency mortgage-backed securities | |||
Debt securities available for sale: | |||
Available-for-sale securities, amortized cost | 1,173,282 | 1,322,432 | |
Available-for-sale securities, gross unrealized gain | 24,195 | 12,444 | |
Available-for-sale securities, gross unrealized losses | 11,801 | 9,019 | |
Debt securities available for sale | 1,185,676 | 1,325,857 | |
Agency collateralized mortgage obligations | |||
Debt securities available for sale: | |||
Available-for-sale securities, amortized cost | 2,541,103 | 2,783,003 | |
Available-for-sale securities, gross unrealized gain | 50,649 | 7,744 | |
Available-for-sale securities, gross unrealized losses | 3,642 | 9,622 | |
Debt securities available for sale | 2,588,110 | 2,781,125 | |
State and political subdivisions | |||
Debt securities available for sale: | |||
Available-for-sale securities, amortized cost | 686 | 757 | |
Available-for-sale securities, gross unrealized gain | 31 | 41 | |
Available-for-sale securities, gross unrealized losses | 0 | 0 | |
Debt securities available for sale | 717 | 798 | |
Debt securities held to maturity: | |||
Held-to-maturity securities, amortized cost | 543,025 | 573,075 | |
Held-to-maturity securities, gross unrealized gain | 8,536 | 8,652 | |
Held-to-maturity securities, gross unrealized losses | 7,642 | 7,494 | |
Debt securities held to maturity, estimated fair value | 543,919 | 574,233 | |
Allowance for credit losses on debt securities held to maturity | 2,000 | ||
Agency | |||
Debt securities held to maturity: | |||
Held-to-maturity securities, amortized cost | 5,959,454 | 4,846,862 | |
Held-to-maturity securities, gross unrealized gain | 261,403 | 82,105 | |
Held-to-maturity securities, gross unrealized losses | 0 | 16,568 | |
Debt securities held to maturity, estimated fair value | 6,220,857 | 4,912,399 | |
Non-agency | |||
Debt securities held to maturity: | |||
Held-to-maturity securities, amortized cost | 35,930 | 37,705 | |
Held-to-maturity securities, gross unrealized gain | 4,490 | 5,923 | |
Held-to-maturity securities, gross unrealized losses | 2,182 | 1,154 | |
Debt securities held to maturity, estimated fair value | 38,238 | 42,474 | |
Asset-backed securities and other | |||
Debt securities held to maturity: | |||
Held-to-maturity securities, amortized cost | 51,503 | 52,355 | |
Held-to-maturity securities, gross unrealized gain | 1,423 | 1,266 | |
Held-to-maturity securities, gross unrealized losses | 4,230 | 2,017 | |
Debt securities held to maturity, estimated fair value | $ 48,696 | $ 51,604 |
Debt Securities Available for_4
Debt Securities Available for Sale and Debt Securities Held to Maturity - Fair value and gross unrealized losses of available for sale debt securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt securities available for sale: | ||
Available-for-sale securities, securities in a loss position for less than 12 months, fair value | $ 628,943 | $ 1,185,172 |
Available-for-sale securities, securities in a loss position for less than 12 months, unrealized losses | 3,641 | 5,827 |
Available-for-sale securities, securities in a loss position for 12 months or longer, fair value | 1,008,275 | 1,991,351 |
Available-for-sale securities, securities in a loss position for 12 months or longer, unrealized losses | 38,481 | 47,508 |
Available-for-sale securities, fair value | 1,637,218 | 3,176,523 |
Available-for-sale securities, unrealized losses | 42,122 | 53,335 |
U.S. Treasury and other U.S. government agencies | ||
Debt securities available for sale: | ||
Available-for-sale securities, securities in a loss position for less than 12 months, fair value | 257,286 | 59,496 |
Available-for-sale securities, securities in a loss position for less than 12 months, unrealized losses | 57 | 208 |
Available-for-sale securities, securities in a loss position for 12 months or longer, fair value | 385,446 | 819,360 |
Available-for-sale securities, securities in a loss position for 12 months or longer, unrealized losses | 26,622 | 34,486 |
Available-for-sale securities, fair value | 642,732 | 878,856 |
Available-for-sale securities, unrealized losses | 26,679 | 34,694 |
Agency mortgage-backed securities | ||
Debt securities available for sale: | ||
Available-for-sale securities, securities in a loss position for less than 12 months, fair value | 277,545 | 245,191 |
Available-for-sale securities, securities in a loss position for less than 12 months, unrealized losses | 3,473 | 851 |
Available-for-sale securities, securities in a loss position for 12 months or longer, fair value | 276,708 | 592,312 |
Available-for-sale securities, securities in a loss position for 12 months or longer, unrealized losses | 8,328 | 8,168 |
Available-for-sale securities, fair value | 554,253 | 837,503 |
Available-for-sale securities, unrealized losses | 11,801 | 9,019 |
Agency collateralized mortgage obligations | ||
Debt securities available for sale: | ||
Available-for-sale securities, securities in a loss position for less than 12 months, fair value | 94,112 | 880,485 |
Available-for-sale securities, securities in a loss position for less than 12 months, unrealized losses | 111 | 4,768 |
Available-for-sale securities, securities in a loss position for 12 months or longer, fair value | 346,121 | 579,679 |
Available-for-sale securities, securities in a loss position for 12 months or longer, unrealized losses | 3,531 | 4,854 |
Available-for-sale securities, fair value | 440,233 | 1,460,164 |
Available-for-sale securities, unrealized losses | $ 3,642 | $ 9,622 |
Debt Securities Available for_5
Debt Securities Available for Sale and Debt Securities Held to Maturity - Allowance for credit losses for debt securities held to maturity (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of period | $ 0 |
Provision for credit losses | 45 |
Securities charged off | 0 |
Recoveries | 0 |
Balance at end of period | 1,892 |
Impact of ASC 326 Adoption | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of period | $ 1,847 |
Debt Securities Available for_6
Debt Securities Available for Sale and Debt Securities Held to Maturity Debt Securities Available for Sale and Debt Securities Held to Maturity - Debt securities held to maturity through credit ratings (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | $ 7,878,158 | $ 6,797,046 |
AAA | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 7,247,775 | |
AA / A - | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 399,592 | |
BBB / B- | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 216,336 | |
CCC / C | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 6,898 | |
D | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 3,160 | |
NR | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 4,397 | |
U.S. Treasury and other U.S. government agencies | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 1,288,246 | 1,287,049 |
U.S. Treasury and other U.S. government agencies | AAA | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 1,288,246 | |
U.S. Treasury and other U.S. government agencies | AA / A - | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 0 | |
U.S. Treasury and other U.S. government agencies | BBB / B- | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 0 | |
U.S. Treasury and other U.S. government agencies | CCC / C | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 0 | |
U.S. Treasury and other U.S. government agencies | D | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 0 | |
U.S. Treasury and other U.S. government agencies | NR | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 0 | |
Agency | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 5,959,454 | 4,846,862 |
Agency | AAA | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 5,959,454 | |
Agency | AA / A - | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 0 | |
Agency | BBB / B- | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 0 | |
Agency | CCC / C | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 0 | |
Agency | D | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 0 | |
Agency | NR | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 0 | |
Non-agency | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 35,930 | 37,705 |
Non-agency | AAA | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 75 | |
Non-agency | AA / A - | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 11,515 | |
Non-agency | BBB / B- | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 10,770 | |
Non-agency | CCC / C | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 6,095 | |
Non-agency | D | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 3,160 | |
Non-agency | NR | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 4,315 | |
Asset-backed securities and other | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 51,503 | 52,355 |
Asset-backed securities and other | AAA | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 0 | |
Asset-backed securities and other | AA / A - | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 50,288 | |
Asset-backed securities and other | BBB / B- | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 330 | |
Asset-backed securities and other | CCC / C | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 803 | |
Asset-backed securities and other | D | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 0 | |
Asset-backed securities and other | NR | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 82 | |
State and political subdivisions | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 543,025 | $ 573,075 |
State and political subdivisions | AAA | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 0 | |
State and political subdivisions | AA / A - | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 337,789 | |
State and political subdivisions | BBB / B- | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 205,236 | |
State and political subdivisions | CCC / C | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 0 | |
State and political subdivisions | D | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | 0 | |
State and political subdivisions | NR | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Held-to-maturity securities, amortized cost | $ 0 |
Debt Securities Available for_7
Debt Securities Available for Sale and Debt Securities Held to Maturity - Maturities of securities portfolios (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investment securities available for sale, amortized cost [Abstract] | ||
Maturing within one year | $ 425,274 | |
Maturing after one but within five years | 1,646,452 | |
Maturing after five but within ten years | 21,114 | |
Maturing after ten years | 442,005 | |
Total single date maturities | 2,534,845 | |
Mortgage-backed securities and collateralized mortgage obligations | 3,714,385 | |
Available-for-sale securities, amortized cost | 6,249,230 | $ 7,251,523 |
Investment securities available for sale, fair value [Abstract] | ||
Maturing within one year | 426,343 | |
Maturing after one but within five years | 1,706,765 | |
Maturing after five but within ten years | 21,833 | |
Maturing after ten years | 416,089 | |
Total single date maturities | 2,571,030 | |
Mortgage-backed securities and collateralized mortgage obligations | 3,773,786 | |
Total | 6,344,816 | 7,235,305 |
Held-to-maturity securities, amortized cost [Abstract] | ||
Maturing within one year | 49,190 | |
Maturing after one but within five years | 1,391,311 | |
Maturing after five but within ten years | 272,817 | |
Maturing after ten years | 169,456 | |
Total single date maturities | 1,882,774 | |
Collateralized mortgage obligations | 5,995,384 | |
Held-to-maturity securities, amortized cost | 7,878,158 | 6,797,046 |
Held-to-maturity securities, fair value [Abstract] | ||
Maturing within one year | 50,040 | |
Maturing after one but within five years | 1,519,329 | |
Maturing after five but within ten years | 274,289 | |
Maturing after ten years | 164,640 | |
Total single date maturities | 2,008,298 | |
Collateralized mortgage obligations | 6,259,095 | |
Total | $ 8,267,393 | $ 6,921,158 |
Debt Securities Available for_8
Debt Securities Available for Sale and Debt Securities Held to Maturity - Gross realized gains and losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross gains | $ 19,139 | $ 8,958 |
Gross losses | 0 | 0 |
Net realized gains | $ 19,139 | $ 8,958 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable Including Other Real Estated Owned [Line Items] | |||
Commercial, industrial, commercial real estate or construction loans, held for investment, period of time after payment becomes delinquent that the Company stops accruing interest income and applies subsequent interest payments as principal reductions | 90 days | ||
Consumer loans including residential real estate, held for investment, period of time after payment becomes delinquent or when foreclosure proceedings have been initiated that the Company stops accruing interest income | 90 days | ||
Impact to the allowance for loan losses related to modifications classified as TDRs | $ 5.3 | $ 3.7 | |
Commitments to lend additional funds to borrowers whose terms have been modified in a TDR | 43.1 | $ 43.8 | |
Other real estate owned | 21 | 22 | |
Loans secured by residential real estate properties for which formal foreclosure proceedings were in process | 52 | 57 | |
Other assets | |||
Accounts, Notes, Loans and Financing Receivable Including Other Real Estated Owned [Line Items] | |||
Accrued interest receivable | 206 | 205 | |
Interest Rate Concession | |||
Accounts, Notes, Loans and Financing Receivable Including Other Real Estated Owned [Line Items] | |||
TDRs | 5.2 | 4.7 | |
Modification of Loan Structure | |||
Accounts, Notes, Loans and Financing Receivable Including Other Real Estated Owned [Line Items] | |||
TDRs | 43.6 | $ 15.8 | |
Residential real estate – mortgage | |||
Accounts, Notes, Loans and Financing Receivable Including Other Real Estated Owned [Line Items] | |||
Other real estate owned | $ 13 | $ 14 | |
Maximum | |||
Accounts, Notes, Loans and Financing Receivable Including Other Real Estated Owned [Line Items] | |||
Recognition of charge off expenses on consumer loans, period of time loan is past due | 120 days | ||
Recognition of charge off expenses on residential loans, period of time loan is past due | 180 days | ||
Recognition of charge off expenses on credit card loans, period of time loan is past due | 180 days |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Composition of loan portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 67,539,414 | $ 63,946,857 | |
Commercial, Financial and Agricultural | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 27,832,113 | 24,432,238 | |
Commercial Real Estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | [1] | 15,890,160 | |
Commercial Real Estate | Real estate – construction | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 2,171,714 | 2,028,682 | |
Commercial Real Estate | Commercial real estate – mortgage | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 13,853,405 | 13,861,478 | |
Residential Real Estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | [2] | 16,371,602 | |
Residential Real Estate | Residential real estate – mortgage | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 13,446,018 | 13,533,954 | |
Residential Real Estate | Equity lines of credit | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 2,611,350 | 2,592,680 | |
Residential Real Estate | Equity loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 229,369 | 244,968 | |
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | [3] | 7,252,857 | |
Consumer | Credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 1,023,372 | 1,002,365 | |
Consumer | Consumer direct | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 2,276,045 | 2,338,142 | |
Consumer | Consumer indirect | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 4,096,028 | 3,912,350 | |
Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 43,857,232 | 40,322,398 | |
Commercial | Commercial, Financial and Agricultural | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 27,832,113 | 24,432,238 | |
Commercial | Commercial Real Estate | Real estate – construction | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 2,171,714 | 2,028,682 | |
Commercial | Commercial Real Estate | Commercial real estate – mortgage | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 13,853,405 | 13,861,478 | |
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 23,682,182 | 23,624,459 | |
Consumer | Residential Real Estate | Residential real estate – mortgage | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 13,446,018 | 13,533,954 | |
Consumer | Residential Real Estate | Equity lines of credit | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 2,611,350 | 2,592,680 | |
Consumer | Residential Real Estate | Equity loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 229,369 | 244,968 | |
Consumer | Consumer | Credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 1,023,372 | 1,002,365 | |
Consumer | Consumer | Consumer direct | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 2,276,045 | 2,338,142 | |
Consumer | Consumer | Consumer indirect | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 4,096,028 | $ 3,912,350 | |
[1] | Includes commercial real estate – mortgage and real estate – construction loans. | ||
[2] | Includes residential real estate – mortgage, equity lines of credit and equity loans. | ||
[3] | Includes credit card, consumer direct and consumer indirect loans. |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Allowance for loan losses by portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 920,993 | $ 885,242 | ||
Provision for loan losses | 356,946 | 182,292 | ||
Loans charged-off | (142,159) | (127,413) | ||
Loan recoveries | 30,361 | 25,901 | ||
Net charge-offs | (111,798) | (101,512) | ||
Balance at end of period | 1,351,072 | 966,022 | ||
Ending balance of allowance attributable to loans: | ||||
Individually evaluated for impairment | $ 126,832 | |||
Collectively evaluated for impairment | 794,161 | |||
Total allowance for loan losses | 1,351,072 | 920,993 | ||
Ending balance of loans: | ||||
Individually evaluated for impairment | 486,044 | |||
Collectively evaluated for impairment | 63,460,813 | |||
Total | 67,539,414 | 63,946,857 | ||
Commercial, Financial and Agricultural | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 408,197 | 393,315 | ||
Provision for loan losses | 140,413 | 59,180 | ||
Loans charged-off | (24,207) | (9,503) | ||
Loan recoveries | 5,193 | 4,760 | ||
Net charge-offs | (19,014) | (4,743) | ||
Balance at end of period | 547,985 | 447,752 | ||
Ending balance of allowance attributable to loans: | ||||
Individually evaluated for impairment | 88,164 | |||
Collectively evaluated for impairment | 320,033 | |||
Total allowance for loan losses | 408,197 | |||
Ending balance of loans: | ||||
Individually evaluated for impairment | 238,653 | |||
Collectively evaluated for impairment | 24,193,585 | |||
Total | 27,832,113 | 24,432,238 | ||
Commercial Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | [1] | 118,633 | 112,437 | |
Provision for loan losses | [1] | 24,548 | 4,662 | |
Loans charged-off | [1] | (87) | (25) | |
Loan recoveries | [1] | 173 | 1,462 | |
Net charge-offs | [1] | 86 | 1,437 | |
Balance at end of period | [1] | 108,233 | 118,536 | |
Ending balance of allowance attributable to loans: | ||||
Individually evaluated for impairment | [1] | 13,255 | ||
Collectively evaluated for impairment | [1] | 105,378 | ||
Total allowance for loan losses | [1] | 118,633 | ||
Ending balance of loans: | ||||
Individually evaluated for impairment | [1] | 78,301 | ||
Collectively evaluated for impairment | [1] | 15,811,859 | ||
Total | [1] | 15,890,160 | ||
Residential Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | [2] | 99,089 | 101,929 | |
Provision for loan losses | [2] | 7,032 | 2,183 | |
Loans charged-off | [2] | (1,999) | (5,012) | |
Loan recoveries | [2] | 1,423 | 3,589 | |
Net charge-offs | [2] | (576) | (1,423) | |
Balance at end of period | [2] | 152,935 | 102,689 | |
Ending balance of allowance attributable to loans: | ||||
Individually evaluated for impairment | [2] | 22,775 | ||
Collectively evaluated for impairment | [2] | 76,314 | ||
Total allowance for loan losses | [2] | 99,089 | ||
Ending balance of loans: | ||||
Individually evaluated for impairment | [2] | 155,728 | ||
Collectively evaluated for impairment | [2] | 16,215,874 | ||
Total | [2] | 16,371,602 | ||
Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | [3] | 295,074 | 277,561 | |
Provision for loan losses | [3] | 184,953 | 116,267 | |
Loans charged-off | [3] | (115,866) | (112,873) | |
Loan recoveries | [3] | 23,572 | 16,090 | |
Net charge-offs | [3] | (92,294) | (96,783) | |
Balance at end of period | [3] | 541,919 | $ 297,045 | |
Ending balance of allowance attributable to loans: | ||||
Individually evaluated for impairment | [3] | 2,638 | ||
Collectively evaluated for impairment | [3] | 292,436 | ||
Total allowance for loan losses | [3] | 295,074 | ||
Ending balance of loans: | ||||
Individually evaluated for impairment | [3] | 13,362 | ||
Collectively evaluated for impairment | [3] | 7,239,495 | ||
Total | [3] | $ 7,252,857 | ||
Impact of ASC 326 Adoption | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 184,931 | |||
Impact of ASC 326 Adoption | Commercial, Financial and Agricultural | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 18,389 | |||
Impact of ASC 326 Adoption | Commercial Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | [1] | (35,034) | ||
Impact of ASC 326 Adoption | Residential Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | [2] | 47,390 | ||
Impact of ASC 326 Adoption | Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | [3] | 154,186 | ||
As Reported Under ASC 326 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 1,105,924 | |||
As Reported Under ASC 326 | Commercial, Financial and Agricultural | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 426,586 | |||
As Reported Under ASC 326 | Commercial Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | [1] | 83,599 | ||
As Reported Under ASC 326 | Residential Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | [2] | 146,479 | ||
As Reported Under ASC 326 | Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | [3] | $ 449,260 | ||
[1] | Includes commercial real estate – mortgage and real estate – construction loans. | |||
[2] | Includes residential real estate – mortgage, equity lines of credit and equity loans. | |||
[3] | Includes credit card, consumer direct and consumer indirect loans. |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Nonaccrual loans by loan class (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | $ 676,716 | $ 606,843 |
Nonaccrual With No Recorded Allowance | 67,960 | |
Commercial, Financial and Agricultural | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | 323,881 | 268,288 |
Nonaccrual With No Recorded Allowance | 34,522 | |
Real estate – construction | Commercial Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | 13,676 | 8,041 |
Nonaccrual With No Recorded Allowance | 0 | |
Commercial real estate – mortgage | Commercial Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | 114,839 | 98,077 |
Nonaccrual With No Recorded Allowance | 33,438 | |
Residential real estate – mortgage | Residential Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | 147,058 | 147,337 |
Nonaccrual With No Recorded Allowance | 0 | |
Equity lines of credit | Residential Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | 33,354 | 38,113 |
Nonaccrual With No Recorded Allowance | 0 | |
Equity loans | Residential Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | 8,027 | 8,651 |
Nonaccrual With No Recorded Allowance | 0 | |
Credit card | Consumer | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | 0 | 0 |
Nonaccrual With No Recorded Allowance | 0 | |
Consumer direct | Consumer | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | 7,160 | 6,555 |
Nonaccrual With No Recorded Allowance | 0 | |
Consumer indirect | Consumer | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | 28,721 | $ 31,781 |
Nonaccrual With No Recorded Allowance | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Impaired loans by loan class (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | ||
Individually evaluated impaired loans with no recorded allowance, recorded investment | $ 97,435 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principal balance | 104,277 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 388,609 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principal balance | 455,162 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 126,832 | |
Individually evaluated impaired loans, average recorded investment | $ 656,181 | |
Individually evaluated impaired loans, interest income recognized | 2,347 | |
Commercial, Financial and Agricultural | ||
Financing Receivable, Impaired [Line Items] | ||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 51,203 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principal balance | 52,991 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 187,450 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principal balance | 249,486 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 88,164 | |
Individually evaluated impaired loans, average recorded investment | 413,888 | |
Individually evaluated impaired loans, interest income recognized | 963 | |
Commercial Real Estate | Real estate – construction | ||
Financing Receivable, Impaired [Line Items] | ||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 0 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principal balance | 0 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 5,972 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principal balance | 5,979 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 850 | |
Individually evaluated impaired loans, average recorded investment | 134 | |
Individually evaluated impaired loans, interest income recognized | 2 | |
Commercial Real Estate | Commercial real estate – mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 46,232 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principal balance | 51,286 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 26,097 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principal balance | 27,757 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 12,405 | |
Individually evaluated impaired loans, average recorded investment | 82,864 | |
Individually evaluated impaired loans, interest income recognized | 215 | |
Residential Real Estate | Residential real estate – mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 0 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principal balance | 0 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 111,623 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principal balance | 111,623 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 8,974 | |
Individually evaluated impaired loans, average recorded investment | 106,397 | |
Individually evaluated impaired loans, interest income recognized | 649 | |
Residential Real Estate | Equity lines of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 0 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principal balance | 0 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 15,466 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principal balance | 15,472 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 10,896 | |
Individually evaluated impaired loans, average recorded investment | 15,257 | |
Individually evaluated impaired loans, interest income recognized | 174 | |
Residential Real Estate | Equity loans | ||
Financing Receivable, Impaired [Line Items] | ||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 0 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principal balance | 0 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 28,639 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principal balance | 29,488 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 2,905 | |
Individually evaluated impaired loans, average recorded investment | 31,718 | |
Individually evaluated impaired loans, interest income recognized | 276 | |
Consumer | Credit card | ||
Financing Receivable, Impaired [Line Items] | ||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 0 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principal balance | 0 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 0 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principal balance | 0 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 0 | |
Individually evaluated impaired loans, average recorded investment | 0 | |
Individually evaluated impaired loans, interest income recognized | 0 | |
Consumer | Consumer direct | ||
Financing Receivable, Impaired [Line Items] | ||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 0 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principal balance | 0 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 11,601 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principal balance | 13,596 | |
Individually evaluated impaired loans with a recorded allowance, allowance | 1,903 | |
Individually evaluated impaired loans, average recorded investment | 5,559 | |
Individually evaluated impaired loans, interest income recognized | 68 | |
Consumer | Consumer indirect | ||
Financing Receivable, Impaired [Line Items] | ||
Individually evaluated impaired loans with no recorded allowance, recorded investment | 0 | |
Individually evaluated impaired loans with no recorded allowance, unpaid principal balance | 0 | |
Individually evaluated impaired loans with a recorded allowance, recorded investment | 1,761 | |
Individually evaluated impaired loans with a recorded allowance, unpaid principal balance | 1,761 | |
Individually evaluated impaired loans with a recorded allowance, allowance | $ 735 | |
Individually evaluated impaired loans, average recorded investment | 364 | |
Individually evaluated impaired loans, interest income recognized | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Credit quality indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | $ 67,539,414 | $ 63,946,857 | |
Commercial, Financial and Agricultural | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 27,832,113 | 24,432,238 | |
Commercial Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | [1] | 15,890,160 | |
Commercial Real Estate | Real estate – construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 2,171,714 | 2,028,682 | |
Commercial Real Estate | Commercial real estate – mortgage | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 13,853,405 | 13,861,478 | |
Residential Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | [2] | 16,371,602 | |
Residential Real Estate | Residential real estate – mortgage | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 13,446,018 | 13,533,954 | |
Residential Real Estate | Equity lines of credit | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 2,611,350 | 2,592,680 | |
Residential Real Estate | Equity loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 229,369 | 244,968 | |
Consumer | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | [3] | 7,252,857 | |
Consumer | Credit card | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 1,023,372 | 1,002,365 | |
Consumer | Consumer direct | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 2,276,045 | 2,338,142 | |
Consumer | Consumer indirect | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 4,096,028 | 3,912,350 | |
Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 43,857,232 | 40,322,398 | |
Commercial | Commercial, Financial and Agricultural | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 1,108,166 | ||
2019 | 3,312,499 | ||
2018 | 3,083,677 | ||
2017 | 3,442,063 | ||
2016 | 1,246,352 | ||
Prior | 4,169,154 | ||
Recorded Investment of Revolving Loans | 11,470,202 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 27,832,113 | ||
Loans | 27,832,113 | 24,432,238 | |
Commercial | Commercial, Financial and Agricultural | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 1,106,835 | ||
2019 | 3,278,768 | ||
2018 | 2,917,757 | ||
2017 | 3,319,000 | ||
2016 | 1,164,840 | ||
Prior | 3,965,678 | ||
Recorded Investment of Revolving Loans | 10,814,825 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 26,567,703 | ||
Loans | 23,319,645 | ||
Commercial | Commercial, Financial and Agricultural | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 3 | ||
2019 | 15,162 | ||
2018 | 63,090 | ||
2017 | 101,070 | ||
2016 | 25,458 | ||
Prior | 93,458 | ||
Recorded Investment of Revolving Loans | 331,603 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 629,844 | ||
Loans | 543,928 | ||
Commercial | Commercial, Financial and Agricultural | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 18,569 | ||
2018 | 73,723 | ||
2017 | 17,835 | ||
2016 | 35,367 | ||
Prior | 91,158 | ||
Recorded Investment of Revolving Loans | 304,282 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 540,934 | ||
Loans | 488,813 | ||
Commercial | Commercial, Financial and Agricultural | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 1,328 | ||
2019 | 0 | ||
2018 | 29,107 | ||
2017 | 4,158 | ||
2016 | 20,687 | ||
Prior | 18,860 | ||
Recorded Investment of Revolving Loans | 19,492 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 93,632 | ||
Loans | 79,852 | ||
Commercial | Commercial Real Estate | Real estate – construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 54,956 | ||
2019 | 603,876 | ||
2018 | 743,068 | ||
2017 | 428,388 | ||
2016 | 110,905 | ||
Prior | 85,639 | ||
Recorded Investment of Revolving Loans | 144,882 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 2,171,714 | ||
Loans | 2,171,714 | 2,028,682 | |
Commercial | Commercial Real Estate | Commercial real estate – mortgage | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 624,083 | ||
2019 | 3,202,521 | ||
2018 | 3,968,786 | ||
2017 | 1,822,582 | ||
2016 | 1,120,878 | ||
Prior | 2,866,313 | ||
Recorded Investment of Revolving Loans | 248,242 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 13,853,405 | ||
Loans | 13,853,405 | 13,861,478 | |
Commercial | Commercial Real Estate | Pass | Real estate – construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 54,956 | ||
2019 | 598,239 | ||
2018 | 735,319 | ||
2017 | 428,388 | ||
2016 | 103,582 | ||
Prior | 78,487 | ||
Recorded Investment of Revolving Loans | 144,882 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 2,143,853 | ||
Loans | 1,979,310 | ||
Commercial | Commercial Real Estate | Pass | Commercial real estate – mortgage | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 621,191 | ||
2019 | 3,201,350 | ||
2018 | 3,856,095 | ||
2017 | 1,759,006 | ||
2016 | 1,085,493 | ||
Prior | 2,710,254 | ||
Recorded Investment of Revolving Loans | 236,345 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 13,469,734 | ||
Loans | 13,547,273 | ||
Commercial | Commercial Real Estate | Special Mention | Real estate – construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 1,486 | ||
Prior | 2,499 | ||
Recorded Investment of Revolving Loans | 0 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 3,985 | ||
Loans | 67 | ||
Commercial | Commercial Real Estate | Special Mention | Commercial real estate – mortgage | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 2,892 | ||
2019 | 0 | ||
2018 | 103,329 | ||
2017 | 4,361 | ||
2016 | 2,506 | ||
Prior | 67,356 | ||
Recorded Investment of Revolving Loans | 0 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 180,444 | ||
Loans | 168,679 | ||
Commercial | Commercial Real Estate | Substandard | Real estate – construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 5,637 | ||
2018 | 7,749 | ||
2017 | 0 | ||
2016 | 5,837 | ||
Prior | 4,653 | ||
Recorded Investment of Revolving Loans | 0 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 23,876 | ||
Loans | 49,305 | ||
Commercial | Commercial Real Estate | Substandard | Commercial real estate – mortgage | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 1,171 | ||
2018 | 8,901 | ||
2017 | 59,215 | ||
2016 | 32,879 | ||
Prior | 85,684 | ||
Recorded Investment of Revolving Loans | 11,897 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 199,747 | ||
Loans | 134,420 | ||
Commercial | Commercial Real Estate | Doubtful | Real estate – construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Recorded Investment of Revolving Loans | 0 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | ||
Loans | 0 | ||
Commercial | Commercial Real Estate | Doubtful | Commercial real estate – mortgage | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 461 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 3,019 | ||
Recorded Investment of Revolving Loans | 0 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 3,480 | ||
Loans | 11,106 | ||
Consumer | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 23,682,182 | 23,624,459 | |
Consumer | Residential Real Estate | Residential real estate – mortgage | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 508,538 | ||
2019 | 2,610,334 | ||
2018 | 1,394,849 | ||
2017 | 1,410,065 | ||
2016 | 1,515,006 | ||
Prior | 6,007,226 | ||
Recorded Investment of Revolving Loans | 0 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 13,446,018 | ||
Loans | 13,446,018 | 13,533,954 | |
Consumer | Residential Real Estate | Equity lines of credit | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Recorded Investment of Revolving Loans | 2,607,484 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 3,866 | ||
Total | 2,611,350 | ||
Loans | 2,611,350 | 2,592,680 | |
Consumer | Residential Real Estate | Equity loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 2,004 | ||
2019 | 15,471 | ||
2018 | 14,385 | ||
2017 | 6,035 | ||
2016 | 4,680 | ||
Prior | 186,794 | ||
Recorded Investment of Revolving Loans | 0 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 229,369 | ||
Loans | 229,369 | 244,968 | |
Consumer | Residential Real Estate | Performing | Residential real estate – mortgage | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 508,538 | ||
2019 | 2,609,558 | ||
2018 | 1,388,842 | ||
2017 | 1,398,484 | ||
2016 | 1,503,951 | ||
Prior | 5,883,578 | ||
Recorded Investment of Revolving Loans | 0 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 13,292,951 | ||
Loans | 13,381,709 | ||
Consumer | Residential Real Estate | Performing | Equity lines of credit | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Recorded Investment of Revolving Loans | 2,571,031 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 3,670 | ||
Total | 2,574,701 | ||
Loans | 2,553,000 | ||
Consumer | Residential Real Estate | Performing | Equity loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 2,004 | ||
2019 | 15,471 | ||
2018 | 14,046 | ||
2017 | 5,886 | ||
2016 | 4,680 | ||
Prior | 178,892 | ||
Recorded Investment of Revolving Loans | 0 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 220,979 | ||
Loans | 236,122 | ||
Consumer | Residential Real Estate | Nonperforming | Residential real estate – mortgage | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 776 | ||
2018 | 6,007 | ||
2017 | 11,581 | ||
2016 | 11,055 | ||
Prior | 123,648 | ||
Recorded Investment of Revolving Loans | 0 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 153,067 | ||
Loans | 152,245 | ||
Consumer | Residential Real Estate | Nonperforming | Equity lines of credit | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Recorded Investment of Revolving Loans | 36,453 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 196 | ||
Total | 36,649 | ||
Loans | 39,680 | ||
Consumer | Residential Real Estate | Nonperforming | Equity loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 339 | ||
2017 | 149 | ||
2016 | 0 | ||
Prior | 7,902 | ||
Recorded Investment of Revolving Loans | 0 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 8,390 | ||
Loans | 8,846 | ||
Consumer | Consumer | Credit card | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Recorded Investment of Revolving Loans | 1,023,372 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 1,023,372 | ||
Loans | 1,023,372 | 1,002,365 | |
Consumer | Consumer | Consumer direct | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 239,046 | ||
2019 | 708,160 | ||
2018 | 604,678 | ||
2017 | 170,807 | ||
2016 | 79,992 | ||
Prior | 33,435 | ||
Recorded Investment of Revolving Loans | 439,927 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 2,276,045 | ||
Loans | 2,276,045 | 2,338,142 | |
Consumer | Consumer | Consumer indirect | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 598,254 | ||
2019 | 1,554,137 | ||
2018 | 1,113,198 | ||
2017 | 477,128 | ||
2016 | 166,239 | ||
Prior | 187,072 | ||
Recorded Investment of Revolving Loans | 0 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 4,096,028 | ||
Loans | 4,096,028 | 3,912,350 | |
Consumer | Consumer | Performing | Credit card | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Recorded Investment of Revolving Loans | 999,665 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 999,665 | ||
Loans | 979,569 | ||
Consumer | Consumer | Performing | Consumer direct | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 239,046 | ||
2019 | 704,151 | ||
2018 | 591,586 | ||
2017 | 168,069 | ||
2016 | 79,114 | ||
Prior | 33,047 | ||
Recorded Investment of Revolving Loans | 438,676 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 2,253,689 | ||
Loans | 2,313,082 | ||
Consumer | Consumer | Performing | Consumer indirect | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 598,254 | ||
2019 | 1,548,308 | ||
2018 | 1,099,575 | ||
2017 | 468,646 | ||
2016 | 161,401 | ||
Prior | 182,083 | ||
Recorded Investment of Revolving Loans | 0 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 4,058,267 | ||
Loans | 3,870,839 | ||
Consumer | Consumer | Nonperforming | Credit card | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Recorded Investment of Revolving Loans | 23,707 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 23,707 | ||
Loans | 22,796 | ||
Consumer | Consumer | Nonperforming | Consumer direct | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 4,009 | ||
2018 | 13,092 | ||
2017 | 2,738 | ||
2016 | 878 | ||
Prior | 388 | ||
Recorded Investment of Revolving Loans | 1,251 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | 22,356 | ||
Loans | 25,060 | ||
Consumer | Consumer | Nonperforming | Consumer indirect | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 5,829 | ||
2018 | 13,623 | ||
2017 | 8,482 | ||
2016 | 4,838 | ||
Prior | 4,989 | ||
Recorded Investment of Revolving Loans | 0 | ||
Recorded Investment of Revolving Loans Converted to Term Loans | 0 | ||
Total | $ 37,761 | ||
Loans | $ 41,511 | ||
[1] | Includes commercial real estate – mortgage and real estate – construction loans. | ||
[2] | Includes residential real estate – mortgage, equity lines of credit and equity loans. | ||
[3] | Includes credit card, consumer direct and consumer indirect loans. |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Past due loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | $ 676,716 | $ 606,843 | |
Accruing TDRs | 97,739 | 98,315 | |
Total Past Due, Nonaccrual or TDR | 1,200,195 | 1,148,364 | |
Not Past Due, Nonaccrual or TDR | 66,339,219 | 62,798,493 | |
Total | 67,539,414 | 63,946,857 | |
30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 265,574 | 262,293 | |
60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 98,392 | 109,787 | |
90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 61,774 | 71,126 | |
Commercial, Financial and Agricultural | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 323,881 | 268,288 | |
Accruing TDRs | 1,931 | 1,456 | |
Total Past Due, Nonaccrual or TDR | 367,906 | 322,171 | |
Not Past Due, Nonaccrual or TDR | 27,464,207 | 24,110,067 | |
Total | 27,832,113 | 24,432,238 | |
Commercial, Financial and Agricultural | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 31,493 | 29,273 | |
Commercial, Financial and Agricultural | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 7,588 | 16,462 | |
Commercial, Financial and Agricultural | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 3,013 | 6,692 | |
Commercial Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total | [1] | 15,890,160 | |
Commercial Real Estate | Real estate – construction | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 13,676 | 8,041 | |
Accruing TDRs | 69 | 72 | |
Total Past Due, Nonaccrual or TDR | 23,741 | 16,289 | |
Not Past Due, Nonaccrual or TDR | 2,147,973 | 2,012,393 | |
Total | 2,171,714 | 2,028,682 | |
Commercial Real Estate | Real estate – construction | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 9,356 | 7,603 | |
Commercial Real Estate | Real estate – construction | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 66 | 2 | |
Commercial Real Estate | Real estate – construction | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 574 | 571 | |
Commercial Real Estate | Commercial real estate – mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 114,839 | 98,077 | |
Accruing TDRs | 3,333 | 3,414 | |
Total Past Due, Nonaccrual or TDR | 137,764 | 118,850 | |
Not Past Due, Nonaccrual or TDR | 13,715,641 | 13,742,628 | |
Total | 13,853,405 | 13,861,478 | |
Commercial Real Estate | Commercial real estate – mortgage | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 13,439 | 5,325 | |
Commercial Real Estate | Commercial real estate – mortgage | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 5,241 | 5,458 | |
Commercial Real Estate | Commercial real estate – mortgage | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 912 | 6,576 | |
Residential Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total | [2] | 16,371,602 | |
Residential Real Estate | Residential real estate – mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 147,058 | 147,337 | |
Accruing TDRs | 55,116 | 57,165 | |
Total Past Due, Nonaccrual or TDR | 301,043 | 303,623 | |
Not Past Due, Nonaccrual or TDR | 13,144,975 | 13,230,331 | |
Total | 13,446,018 | 13,533,954 | |
Residential Real Estate | Residential real estate – mortgage | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 67,938 | 72,571 | |
Residential Real Estate | Residential real estate – mortgage | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 25,187 | 21,909 | |
Residential Real Estate | Residential real estate – mortgage | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 5,744 | 4,641 | |
Residential Real Estate | Equity lines of credit | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 33,354 | 38,113 | |
Accruing TDRs | 0 | 0 | |
Total Past Due, Nonaccrual or TDR | 59,275 | 62,027 | |
Not Past Due, Nonaccrual or TDR | 2,552,075 | 2,530,653 | |
Total | 2,611,350 | 2,592,680 | |
Residential Real Estate | Equity lines of credit | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 16,382 | 15,766 | |
Residential Real Estate | Equity lines of credit | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 6,244 | 6,581 | |
Residential Real Estate | Equity lines of credit | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 3,295 | 1,567 | |
Residential Real Estate | Equity loans | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 8,027 | 8,651 | |
Accruing TDRs | 22,392 | 23,770 | |
Total Past Due, Nonaccrual or TDR | 34,495 | 36,500 | |
Not Past Due, Nonaccrual or TDR | 194,874 | 208,468 | |
Total | 229,369 | 244,968 | |
Residential Real Estate | Equity loans | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 2,636 | 2,856 | |
Residential Real Estate | Equity loans | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 1,147 | 1,028 | |
Residential Real Estate | Equity loans | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 293 | 195 | |
Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total | [3] | 7,252,857 | |
Consumer | Credit card | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 0 | 0 | |
Accruing TDRs | 0 | 0 | |
Total Past Due, Nonaccrual or TDR | 45,869 | 43,285 | |
Not Past Due, Nonaccrual or TDR | 977,503 | 959,080 | |
Total | 1,023,372 | 1,002,365 | |
Consumer | Credit card | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 13,230 | 11,275 | |
Consumer | Credit card | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 8,932 | 9,214 | |
Consumer | Credit card | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 23,707 | 22,796 | |
Consumer | Consumer direct | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 7,160 | 6,555 | |
Accruing TDRs | 14,898 | 12,438 | |
Total Past Due, Nonaccrual or TDR | 91,545 | 91,712 | |
Not Past Due, Nonaccrual or TDR | 2,184,500 | 2,246,430 | |
Total | 2,276,045 | 2,338,142 | |
Consumer | Consumer direct | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 34,553 | 33,658 | |
Consumer | Consumer direct | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 19,738 | 20,703 | |
Consumer | Consumer direct | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 15,196 | 18,358 | |
Consumer | Consumer indirect | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 28,721 | 31,781 | |
Accruing TDRs | 0 | 0 | |
Total Past Due, Nonaccrual or TDR | 138,557 | 153,907 | |
Not Past Due, Nonaccrual or TDR | 3,957,471 | 3,758,443 | |
Total | 4,096,028 | 3,912,350 | |
Consumer | Consumer indirect | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 76,547 | 83,966 | |
Consumer | Consumer indirect | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | 24,249 | 28,430 | |
Consumer | Consumer indirect | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Past Due | $ 9,040 | $ 9,730 | |
[1] | Includes commercial real estate – mortgage and real estate – construction loans. | ||
[2] | Includes residential real estate – mortgage, equity lines of credit and equity loans. | ||
[3] | Includes credit card, consumer direct and consumer indirect loans. |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Classified as troubled debt restructurings (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)Contract | Mar. 31, 2019USD ($)Contract | |
Commercial, Financial and Agricultural | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | Contract | 10 | 3 |
Post-Modification Outstanding Recorded Investment | $ | $ 41,238 | $ 11,570 |
Number of subsequent default contracts | Contract | 0 | 0 |
Recorded investment at subsequent default | $ | $ 0 | $ 0 |
Commercial Real Estate | Real estate – construction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Number of subsequent default contracts | Contract | 0 | 0 |
Recorded investment at subsequent default | $ | $ 0 | $ 0 |
Commercial Real Estate | Commercial real estate – mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | Contract | 2 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 1,740 | $ 0 |
Number of subsequent default contracts | Contract | 0 | 0 |
Recorded investment at subsequent default | $ | $ 0 | $ 0 |
Residential Real Estate | Residential real estate – mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | Contract | 8 | 20 |
Post-Modification Outstanding Recorded Investment | $ | $ 844 | $ 5,233 |
Number of subsequent default contracts | Contract | 1 | 0 |
Recorded investment at subsequent default | $ | $ 84 | $ 0 |
Residential Real Estate | Equity lines of credit | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | Contract | 1 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 36 | $ 0 |
Number of subsequent default contracts | Contract | 0 | 0 |
Recorded investment at subsequent default | $ | $ 0 | $ 0 |
Residential Real Estate | Equity loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | Contract | 1 | 4 |
Post-Modification Outstanding Recorded Investment | $ | $ 192 | $ 176 |
Number of subsequent default contracts | Contract | 0 | 2 |
Recorded investment at subsequent default | $ | $ 0 | $ 151 |
Consumer | Credit card | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Number of subsequent default contracts | Contract | 0 | 0 |
Recorded investment at subsequent default | $ | $ 0 | $ 0 |
Consumer | Consumer direct | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | Contract | 89 | 13 |
Post-Modification Outstanding Recorded Investment | $ | $ 4,762 | $ 3,519 |
Number of subsequent default contracts | Contract | 4 | 2 |
Recorded investment at subsequent default | $ | $ 217 | $ 15 |
Consumer | Consumer indirect | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Number of subsequent default contracts | Contract | 0 | 0 |
Recorded investment at subsequent default | $ | $ 0 | $ 0 |
Loan Sales and Servicing - Narr
Loan Sales and Servicing - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | $ 117,752 | $ 112,058 |
Residential Real Estate | Residential real estate – mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | $ 118,000 | $ 112,000 |
Loan Sales and Servicing - Loan
Loan Sales and Servicing - Loans Transferred to Held for Sale and Loans Sold (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans transferred from held for investment to held for sale | $ 0 | $ 1,196,883 |
Loans and Loans Held for Sale Excluding Loans Originated for Sale in Secondary Market | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans transferred from held for investment to held for sale | 0 | 1,196,883 |
Charge-offs on loans recognized at transfer from held for investment to held for sale | 0 | 0 |
Loans and loans held for sale sold | $ 0 | $ 144,674 |
Loan Sales and Servicing - Sale
Loan Sales and Servicing - Sales in the Secondary Market (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net gains recognized on sales of residential real estate loans originated for sale in the secondary market | $ 8,775 | $ 5,135 | |
Originated For Sale In The Secondary Market | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Residential real estate loans originated for sale in the secondary market sold | [1] | 203,830 | 119,722 |
Net gains recognized on sales of residential real estate loans originated for sale in the secondary market | [2] | 8,775 | 5,135 |
Servicing fees recognized | [2] | $ 2,608 | $ 2,672 |
[1] | The Company has retained servicing responsibilities for all loans sold that were originated for sale in the secondary market. | ||
[2] | Recorded as a component of mortgage banking income in the Company's Unaudited Condensed Consolidated Statements of Income. |
Loan Sales and Servicing - Real
Loan Sales and Servicing - Real Estate Mortgages Sold With Retained Servicing (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
MSRs | $ 31,232 | $ 42,022 | |
Residential Real Estate Mortgage Loans Sold with Retained Servicing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded balance of residential real estate mortgage loans sold with retained servicing | [1] | 4,578,812 | 4,534,202 |
MSRs | [2] | $ 31,232 | $ 42,022 |
[1] | These loans are not included in loans on the Company's Unaudited Condensed Consolidated Balance Sheets. | ||
[2] | Recorded under the fair value method and included in other assets on the Company's Unaudited Condensed Consolidated Balance Sheets. |
Loan Sales and Servicing - Resi
Loan Sales and Servicing - Residential MSRs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Beginning balance | $ 42,022 | ||
Increase (decrease) in fair value: | |||
Ending balance | 31,232 | ||
Residential Mortgage | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Beginning balance | 42,022 | $ 51,539 | |
Additions | 1,671 | 1,059 | |
Increase (decrease) in fair value: | |||
Due to changes in valuation inputs or assumptions | (10,140) | (2,343) | |
Due to other changes in fair value | [1] | (2,321) | (2,710) |
Ending balance | $ 31,232 | $ 47,545 | |
[1] | Represents the realization of expected net servicing cash flows, expected borrower repayments and the passage of time. |
Loan Sales and Servicing - Valu
Loan Sales and Servicing - Valuation Assumptions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Servicing Assets at Fair Value [Line Items] | ||
Fair value of MSRs | $ 31,232 | $ 42,022 |
Composition of residential loans serviced for others, percentage | 100.00% | 100.00% |
Weighted average life (in years) | 3 years 8 months 1 day | 4 years 7 months 10 days |
Prepayment speed: | 16.60% | 16.90% |
Effect on fair value of a 10% increase | $ (1,888) | $ (2,906) |
Effect on fair value of a 20% increase | $ (3,578) | $ (5,043) |
Weighted average option adjusted spread: | 6.20% | 6.40% |
Effect on fair value of a 10% increase | $ (633) | $ (1,159) |
Effect on fair value of a 20% increase | $ (1,241) | $ (1,812) |
Fixed rate mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of residential loans serviced for others, percentage | 98.20% | 98.10% |
Adjustable rate mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of residential loans serviced for others, percentage | 1.80% | 1.90% |
Goodwill - Goodwill Activity (D
Goodwill - Goodwill Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||||
Goodwill, beginning of period | $ 9,835,400 | $ 9,835,400 | $ 9,835,400 | |
Accumulated impairment losses, beginning of period | (5,322,104) | (4,852,104) | (4,852,104) | |
Goodwill, net, beginning of period | 4,513,296 | 4,983,296 | 4,983,296 | |
Impairment losses | (2,185,000) | $ 0 | (470,000) | $ 0 |
Goodwill, end of period | 9,835,400 | 9,835,400 | ||
Accumulated impairment losses, end of period | (7,507,104) | (5,322,104) | ||
Goodwill, net, end of period | $ 2,328,296 | $ 4,513,296 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)reporting_unit | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Number of reporting units | reporting_unit | 3 | ||||
Recognized accumulated goodwill impairment losses | $ 7,507,104 | $ 5,322,104 | $ 4,852,104 | ||
Goodwill impairment | 2,185,000 | $ 0 | $ 470,000 | $ 0 | |
Commercial Banking and Wealth | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Recognized accumulated goodwill impairment losses | 3,200,000 | ||||
Goodwill impairment | 729,000 | ||||
Retail Banking | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Recognized accumulated goodwill impairment losses | 2,700,000 | ||||
Goodwill impairment | 1,300,000 | ||||
Corporate and Investment Banking | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Recognized accumulated goodwill impairment losses | 883,000 | ||||
Goodwill impairment | 164,000 | ||||
Reporting units with no remaining goodwill balance | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Recognized accumulated goodwill impairment losses | $ 784,000 |
Goodwill Goodwill - Goodwill Ac
Goodwill Goodwill - Goodwill Accumulated Impairment Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 2,328,296 | $ 4,513,296 | $ 4,983,296 |
Commercial Banking and Wealth | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 1,930,830 | 2,659,830 | |
Retail Banking | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 135,660 | 1,427,660 | |
Corporate and Investment Banking | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 261,806 | $ 425,806 |
Derivatives and Hedging - Deriv
Derivatives and Hedging - Derivatives by Balance Sheet Location (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | ||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | $ 77,191 | $ 41,390 | ||
Derivative liabilities | 230,610 | 94,979 | ||
Derivatives designated as hedging instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | [1] | 12,976 | 10,735 | |
Derivative liabilities | [2] | 5,618 | 3,218 | |
Derivatives designated as hedging instrument | Fair value hedges | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | [1] | 12,976 | 10,633 | |
Derivative liabilities | [2] | 807 | 354 | |
Derivatives designated as hedging instrument | Fair value hedges | Interest rate swaps related to long-term debt | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | 3,623,950 | 3,623,950 | ||
Derivative assets | [1] | 12,976 | 10,633 | |
Derivative liabilities | [2] | 807 | 354 | |
Derivatives designated as hedging instrument | Cash flow hedges | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | [1] | 0 | 102 | |
Derivative liabilities | [2] | 4,811 | 2,864 | |
Derivatives designated as hedging instrument | Cash flow hedges | Swaps related to commercial loans | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | 10,000,000 | 10,000,000 | ||
Derivative assets | [1] | 0 | 0 | |
Derivative liabilities | [2] | 0 | 0 | |
Derivatives designated as hedging instrument | Cash flow hedges | Swaps related to FHLB advances | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | 120,000 | 120,000 | ||
Derivative assets | [1] | 0 | 0 | |
Derivative liabilities | [2] | 4,237 | 2,864 | |
Derivatives designated as hedging instrument | Cash flow hedges | Foreign exchange contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | 3,699 | 2,597 | ||
Derivative assets | [1] | 0 | 102 | |
Derivative liabilities | [2] | 574 | 0 | |
Free-standing derivatives not designated as hedging instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | [1] | 866,768 | 344,247 | |
Derivative liabilities | [2] | 265,292 | 132,682 | |
Free-standing derivatives not designated as hedging instrument | Forward contracts related to held for sale mortgages | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | 508,500 | 289,990 | ||
Derivative assets | [1] | 3,891 | 148 | |
Derivative liabilities | [2] | 10,175 | 514 | |
Free-standing derivatives not designated as hedging instrument | Option contracts related to mortgage servicing rights | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | 0 | 60,000 | ||
Derivative assets | [1] | 0 | 38 | |
Derivative liabilities | [2] | 0 | 0 | |
Free-standing derivatives not designated as hedging instrument | Interest rate lock commitments | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | 473,795 | 146,941 | ||
Derivative assets | [1] | 14,324 | 3,088 | |
Derivative liabilities | [2] | 1,914 | 0 | |
Free-standing derivatives not designated as hedging instrument | Purchased equity option related to equity-linked CDs | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | 111,248 | 152,130 | ||
Derivative assets | [1] | 2,572 | 4,460 | |
Derivative liabilities | 0 | [2] | 0 | |
Free-standing derivatives not designated as hedging instrument | Written equity option related to equity-linked CDs | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | 91,806 | 128,620 | ||
Derivative assets | [1] | 0 | 0 | |
Derivative liabilities | [2] | 2,141 | 3,765 | |
Free-standing derivatives not designated as hedging instrument | Forwards and swaps related to commercial loans | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | 572,016 | 443,493 | ||
Derivative assets | [1] | 7,574 | 167 | |
Derivative liabilities | [2] | 2,666 | 3,872 | |
Free-standing derivatives not designated as hedging instrument | Spots related to commercial loans | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | 7,612 | 48,626 | ||
Derivative assets | [1] | 3 | 7 | |
Derivative liabilities | [2] | 5 | 68 | |
Free-standing derivatives not designated as hedging instrument | Swap associated with sale of Visa, Inc. Class B shares | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | 138,881 | 161,904 | ||
Derivative assets | [1] | 0 | 0 | |
Derivative liabilities | [2] | 5,506 | 5,904 | |
Free-standing derivatives not designated as hedging instrument | Futures contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | [3] | 2,396,000 | 2,110,000 | |
Derivative assets | [1],[3] | 0 | 0 | |
Derivative liabilities | [2],[3] | 0 | 0 | |
Free-standing derivatives not designated as hedging instrument | Total trading account assets and liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | [1] | 838,404 | 336,339 | |
Derivative liabilities | [2] | 242,885 | 118,559 | |
Free-standing derivatives not designated as hedging instrument | Interest rate contracts for customers | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | 38,301,554 | 35,503,973 | ||
Derivative assets | [1] | 780,757 | 313,573 | |
Derivative liabilities | [2] | 187,995 | 97,881 | |
Free-standing derivatives not designated as hedging instrument | Foreign exchange contracts for customers | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, notional amount | 1,335,719 | 1,039,507 | ||
Derivative assets | [1] | 57,647 | 22,766 | |
Derivative liabilities | [2] | $ 54,890 | $ 20,678 | |
[1] | Derivative assets, except for trading account assets that are recorded as a component of trading account assets on the Company's Unaudited Condensed Consolidated Balance Sheets, are recorded in other assets on the Company’s Unaudited Condensed Consolidated Balance Sheets. | |||
[2] | Derivative liabilities are recorded in accrued expenses and other liabilities on the Company’s Unaudited Condensed Consolidated Balance Sheets. | |||
[3] | Changes in fair value are cash settled daily; therefore, there is no ending balance at any given reporting period. |
Derivatives and Hedging - Fair
Derivatives and Hedging - Fair Value Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) related to hedge, firm commitments no longer qualifying as a fair value hedge | $ 0 | $ 0 | |
Derivatives designated as hedging instrument | Fair value hedges | Interest rate swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair value hedges, weighted average expected remaining term | 3 years 25 days | ||
Long-term debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Carrying amount of hedging liabilities | $ 3,484,746 | $ 3,483,177 | |
Cumulative amount of fair value hedging adjustment included in the carrying amount of hedged liabilities - Hedged items currently designated | 124,221 | 25,092 | |
Cumulative amount of fair value hedging adjustment included in the carrying amount of hedged liabilities - Hedged items no longer designated | $ 1,335 | $ 1,883 |
Derivatives and Hedging - Cash
Derivatives and Hedging - Cash Flow Hedges (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total amounts presented in the unaudited condensed consolidated statements of income | $ 715,476,000 | $ 800,488,000 | |
Total amounts presented in the unaudited condensed consolidated statements of income | $ 21,176,000 | 37,626,000 | |
Derivatives designated as hedging instrument | Fair value hedges | Interest rate swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash flow hedges, weighted average expected remaining term | 3 years 25 days | ||
Derivatives designated as hedging instrument | Cash flow hedges | Interest rate swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on discontinuation of interest rate cash flow hedge due to forecasted transaction probable of not occurring, net | $ 0 | 0 | |
Cash flow hedges not terminated, net fair value | $ (5,000,000) | ||
Cash flow hedges, weighted average expected remaining term | 2 years 9 months 63 days | ||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 110,900,000 | ||
Maximum length of time hedged in interest rate cash flow hedge | 3 years 8 months 68 days | ||
Interest and Fees on Loans | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total amounts presented in the unaudited condensed consolidated statements of income | $ 715,476,000 | 800,488,000 | |
Interest and Fees on Loans | Derivatives designated as hedging instrument | Fair value hedges | |||
Gains (losses) on fair value hedging relationships: | |||
Net income (expense) recognized on fair value hedges | 0 | 0 | |
Interest and Fees on Loans | Derivatives designated as hedging instrument | Fair value hedges | Interest rate contracts | |||
Gains (losses) on fair value hedging relationships: | |||
Amounts related to interest settlements and amortization on derivatives | 0 | 0 | |
Recognized on derivatives | 0 | 0 | |
Recognized on hedged items | 0 | 0 | |
Interest and Fees on Loans | Derivatives designated as hedging instrument | Cash flow hedges | |||
Gain (losses) on cash flow hedging relationships: | |||
Net income (expense) recognized on cash flow hedges | [1] | 5,459,000 | (1,210,000) |
Interest and Fees on Loans | Derivatives designated as hedging instrument | Cash flow hedges | Interest rate contracts | |||
Gain (losses) on cash flow hedging relationships: | |||
Realized losses reclassified from AOCI into net income | [1],[2] | 5,459,000 | (1,210,000) |
Interest on FHLB and other borrowings | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total amounts presented in the unaudited condensed consolidated statements of income | 21,176,000 | 37,626,000 | |
Interest on FHLB and other borrowings | Derivatives designated as hedging instrument | Fair value hedges | |||
Gains (losses) on fair value hedging relationships: | |||
Net income (expense) recognized on fair value hedges | 10,138,000 | (957,000) | |
Interest on FHLB and other borrowings | Derivatives designated as hedging instrument | Fair value hedges | Interest rate contracts | |||
Gains (losses) on fair value hedging relationships: | |||
Amounts related to interest settlements and amortization on derivatives | 3,365,000 | (2,348,000) | |
Recognized on derivatives | 105,944,000 | 24,034,000 | |
Recognized on hedged items | (99,171,000) | (22,643,000) | |
Interest on FHLB and other borrowings | Derivatives designated as hedging instrument | Cash flow hedges | |||
Gain (losses) on cash flow hedging relationships: | |||
Net income (expense) recognized on cash flow hedges | [1] | (419,000) | (169,000) |
Interest on FHLB and other borrowings | Derivatives designated as hedging instrument | Cash flow hedges | Interest rate contracts | |||
Gain (losses) on cash flow hedging relationships: | |||
Realized losses reclassified from AOCI into net income | [1],[2] | $ (419,000) | $ (169,000) |
[1] | See Note 10, Comprehensive Income, for gain or loss recognized for cash flow hedges in accumulated other comprehensive income. | ||
[2] | Pre-tax |
Derivatives and Hedging - Free
Derivatives and Hedging - Free Standing Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Futures contracts | Mortgage banking income and corporate and correspondent investment sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments not designated as hedging instruments, gain (loss), net | $ (793) | $ (579) |
Interest rate lock commitments | Mortgage banking income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments not designated as hedging instruments, gain (loss), net | 9,322 | 1,146 |
Option contracts related to mortgage servicing rights | Mortgage banking income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments not designated as hedging instruments, gain (loss), net | 1,528 | 294 |
Forward contracts related to residential mortgage loans held for sale | Mortgage banking income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments not designated as hedging instruments, gain (loss), net | (5,907) | (89) |
Interest rate contracts for customers | Corporate and correspondent investment sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments not designated as hedging instruments, gain (loss), net | 4,137 | 3,428 |
Purchased equity option related to equity-linked CDs | Other expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments not designated as hedging instruments, gain (loss), net | (1,888) | (1,017) |
Written equity option related to equity-linked CDs | Other expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments not designated as hedging instruments, gain (loss), net | 1,624 | 996 |
Forward and swap contracts related to commercial loans | Other income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments not designated as hedging instruments, gain (loss), net | 25,981 | 2,696 |
Spot contracts related to commercial loans | Other income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments not designated as hedging instruments, gain (loss), net | 771 | (502) |
Foreign currency exchange contracts for customers | Corporate and correspondent investment sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments not designated as hedging instruments, gain (loss), net | $ 4,701 | $ 3,851 |
Derivatives and Hedging - Credi
Derivatives and Hedging - Credit and Market Risks (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | ||
Derivatives [Line Items] | ||||
Derivative assets | $ 77,191,000 | $ 41,390,000 | ||
Derivative, collateral, right to reclaim cash | [1] | 230,610,000 | 94,979,000 | |
Derivative, collateral, obligation to return | [1] | 5,160,000 | 5,860,000 | |
Other assets | ||||
Derivatives [Line Items] | ||||
Derivative, collateral, right to reclaim cash | 231,000,000 | 150,000,000 | ||
Deposits | ||||
Derivatives [Line Items] | ||||
Derivative, collateral, obligation to return | 23,000,000 | 12,000,000 | ||
Free-standing derivatives not designated as hedging instrument | ||||
Derivatives [Line Items] | ||||
Derivative assets | [2] | 866,768,000 | 344,247,000 | |
Free-standing derivatives not designated as hedging instrument | Interest rate swap | ||||
Derivatives [Line Items] | ||||
Derivative assets | 838,000,000 | |||
Gain (loss) on derivative instruments held for trading purposes, net | 0 | $ 0 | ||
Gain (loss) on derivative instruments held for non-trading purposes, net | 0 | $ 0 | ||
Derivatives designated as hedging instrument | ||||
Derivatives [Line Items] | ||||
Derivative assets | [2] | 12,976,000 | $ 10,735,000 | |
Derivatives designated as hedging instrument | Interest rate swap | Over the counter | ||||
Derivatives [Line Items] | ||||
Credit risk derivatives, at fair value, net | $ 13,000,000 | |||
[1] | The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists, the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. | |||
[2] | Derivative assets, except for trading account assets that are recorded as a component of trading account assets on the Company's Unaudited Condensed Consolidated Balance Sheets, are recorded in other assets on the Company’s Unaudited Condensed Consolidated Balance Sheets. |
Derivatives and Hedging - Conti
Derivatives and Hedging - Contingent Features (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative, net liability position, aggregate fair value | $ 86 | $ 47 |
Collateral already posted, aggregate fair value | 84 | 45 |
Additional collateral, aggregate fair value | $ 2 | $ 2 |
Derivatives and Hedging - Netti
Derivatives and Hedging - Netting Arrangements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Derivative financial assets: | |||
Derivative assets, total derivatives subject to a master netting arrangement, gross amounts recognized | $ 77,191 | $ 41,390 | |
Derivative assets, total derivative subject to a master netting arrangement, gross amounts offset in the condensed consolidated balance sheet | 0 | 0 | |
Derivative assets, total derivatives subject to a master netting arrangement, net amount presented in the condensed consolidated balance sheets | 77,191 | 41,390 | |
Derivative assets, total derivatives subject to a master netting arrangement, financial instruments collateral received/pledged | [1] | 0 | 0 |
Derivate assets, total derivatives subject to a master netting arrangement, cash collateral received/pledged | [1] | 5,160 | 5,860 |
Derivative asset, total derivatives subject to a master netting arrangement, net amount | 72,031 | 35,530 | |
Derivative assets, total derivatives not subject to a master netting arrangement | 802,553 | 313,592 | |
Derivative assets, total derivatives not subject to a master netting arrangement, net amount | 802,553 | 313,592 | |
Total derivative financial assets, gross amounts recognized | 879,744 | 354,982 | |
Total derivative financial assets, net amount presented in the condensed consolidated balance sheet | 879,744 | 354,982 | |
Total derivative financial assets, net amount | 874,584 | 349,122 | |
Derivative financial liabilities: | |||
Derivative liabilities, total derivative subject to a master netting arrangement, gross amounts recognized | 230,610 | 94,979 | |
Derivative liabilities, total derivative subject to a master netting arrangement, gross amount offset in the condensed consolidated balance sheets | 0 | 0 | |
Derivative liabilities, total derivative subject to a master netting arrangement, net amount presented in the condensed consolidated balance sheets | 230,610 | 94,979 | |
Derivative liabilities, total derivatives subject to a master netting arrangement, financial instruments collateral received/pledged | [1] | 0 | 0 |
Derivative liabilities, total derivative subject to a master netting arrangement, cash collateral received/pledged | [1] | 230,610 | 94,979 |
Derivate liabilities, total derivatives subject to master netting arrangement, net amount | 0 | 0 | |
Derivative liabilities, total derivatives not subject to a master netting arrangement | 40,300 | 40,921 | |
Derivative liabilities, total derivatives not subject to a master netting arrangement, net amount | 40,300 | 40,921 | |
Derivative liabilities, total derivative financial liabilities, gross amount recognized | 270,910 | 135,900 | |
Total derivative financial liabilities, net amount presented in the condensed consolidated balance sheets | 270,910 | 135,900 | |
Total derivative financial liabilities, net amount | $ 40,300 | $ 40,921 | |
[1] | The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists, the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. |
Securities Financing Activiti_3
Securities Financing Activities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Securities purchased under agreements to resell | |||
Securities purchased under agreements to resell, subject to master netting arrangement, gross amounts recognized | $ 9,227,506 | $ 656,504 | |
Securities purchased under agreements to resell, subject to a master netting arrangement, gross amounts offset in the condensed consolidated balance sheets | 8,982,090 | 477,590 | |
Securities purchased under agreements to resell, subject to a master netting arrangement, net amount presented in the condensed consolidated balance sheets | 245,416 | 178,914 | |
Securities purchased under agreements to resell, subject to a master netting arrangement, financial instruments collateral received/ pledged | [1] | 245,416 | 178,914 |
Securities purchased under agreements to resell, net amount | 0 | 0 | |
Securities sold under agreements to repurchase | |||
Securities sold under agreements to repurchase, subject to a master netting arrangement, gross amounts recognized | 9,391,874 | 650,618 | |
Securities sold under agreements to repurchase, gross amounts offset in the condensed consolidated balance sheets | 8,982,090 | 477,590 | |
Securities sold under agreements to repurchase, subject to a master netting arrangement, net amount presented in the condensed consolidated balance sheet | 409,784 | 173,028 | |
Securities sold under agreements to repurchase, subject to a master netting arrangement, financial instruments collateral received/ pledged | [1] | 409,784 | 173,028 |
Securities sold under agreements to repurchase, subject to a master netting arrangement, net amount | 0 | 0 | |
Fair value of collateral received related to securities purchased under agreements to resell | 9,400,000 | 648,000 | |
Fair value of collateral pledged related to securities sold under agreements to repurchase | $ 10,200,000 | $ 644,000 | |
[1] | The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists, the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. |
Securities Financing Activiti_4
Securities Financing Activities - Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | $ 9,391,874 | $ 650,618 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 3,734,955 | 321,310 |
Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 1,838,089 | 0 |
30 - 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 1,476,830 | 23,558 |
Greater Than 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 2,342,000 | 305,750 |
U.S. Treasury and other U.S. government agencies | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 9,391,874 | 627,060 |
U.S. Treasury and other U.S. government agencies | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 3,734,955 | 321,310 |
U.S. Treasury and other U.S. government agencies | Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 1,838,089 | 0 |
U.S. Treasury and other U.S. government agencies | 30 - 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 1,476,830 | 0 |
U.S. Treasury and other U.S. government agencies | Greater Than 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 2,342,000 | 305,750 |
Mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 0 | 23,558 |
Mortgage-backed securities | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 0 | 0 |
Mortgage-backed securities | Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 0 | 0 |
Mortgage-backed securities | 30 - 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | 0 | 23,558 |
Mortgage-backed securities | Greater Than 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements repurchase | $ 0 | $ 0 |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees - Commitments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Guarantor Obligations [Line Items] | ||
Commitments to extend credit | $ 25,333,070 | $ 27,725,965 |
Financial Standby Letter of Credit | ||
Guarantor Obligations [Line Items] | ||
Standby and commercial letters of credit | $ 1,033,885 | $ 996,830 |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees - Narrative (Details) - USD ($) | Jun. 27, 2018 | Apr. 30, 2020 | Dec. 31, 2017 | Mar. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | $ 24,000,000 | ||||
Minimum | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 0 | ||||
Maximum | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | 76,000,000 | ||||
Financial Standby Letter of Credit | |||||
Loss Contingencies [Line Items] | |||||
Letters of credit, deferred fees | 8,000,000 | 7,000,000 | |||
Maximum potential amount of future undiscounted payments Company could be required to make on outstanding standby letters of credit | $ 1,000,000,000 | ||||
Financial Standby Letter of Credit | Minimum | |||||
Loss Contingencies [Line Items] | |||||
Standby and commercial letters of credit expiration term | 1 year | ||||
Financial Standby Letter of Credit | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Standby and commercial letters of credit expiration term | 4 years | ||||
Potential Recourse Related to FNMA Securitizations | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 19,000,000 | 18,000,000 | |||
Accrued Expenses and Other Liabilities | Financial Standby Letter of Credit | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | 101,000,000 | 67,000,000 | |||
Accrued Expenses and Other Liabilities | Potential Recourse Related to FNMA Securitizations | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | 690,000 | 693,000 | |||
Accrued Expenses and Other Liabilities | Standard Representations and Warranties Related to Loan Sales to Government-Sponsored Agencies | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | $ 1,700,000 | $ 1,200,000 | |||
Pending Litigation | Minimum | Subsequent Event | Zamora-Orduna Realty Group LLC v. BBVA USA | |||||
Loss Contingencies [Line Items] | |||||
Damages sought, value | $ 10,000,000 | ||||
Settled Litigation | David S. Bagwell Trust, et al. v. BBVA USA, et al. | |||||
Loss Contingencies [Line Items] | |||||
Amount awarded to other party | $ 98,000,000 | ||||
Damages awarded, value | $ 96,000,000 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Forward contracts | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Net gains (losses) realized due to changes in fair value of loans | $ (5,907) | $ (89) |
Noninterest income | Residential mortgage loans held for sale | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Net gains (losses) realized due to changes in fair value of loans | $ 2,588 | $ 245 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair value of balance sheet items (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Investment securities available for sale | $ 6,344,816 | $ 7,235,305 |
Derivative asset | 879,744 | 354,982 |
Liabilities: | ||
Derivative liabilities | 270,910 | 135,900 |
U.S. Treasury and other U.S. government agencies | ||
Assets: | ||
Investment securities available for sale | 2,570,313 | 3,127,525 |
Collateralized mortgage obligations | ||
Assets: | ||
Investment securities available for sale | 2,588,110 | 2,781,125 |
State and political subdivisions | ||
Assets: | ||
Investment securities available for sale | 717 | 798 |
Fair Value, measurements, recurring | ||
Assets: | ||
Trading account assets | 1,009,130 | 473,976 |
Investment securities available for sale | 6,344,816 | 7,235,305 |
Loans held for sale | 117,752 | 112,058 |
Derivative asset | 41,340 | 18,643 |
Liabilities: | ||
Trading account liabilities | 242,885 | 118,559 |
Derivative liabilities | 22,519 | 11,437 |
Fair Value, measurements, recurring | Interest rate contracts | ||
Assets: | ||
Derivative asset | 31,191 | 13,907 |
Liabilities: | ||
Derivative liabilities | 17,133 | 3,732 |
Fair Value, measurements, recurring | Equity contracts | ||
Assets: | ||
Derivative asset | 2,572 | 4,460 |
Liabilities: | ||
Derivative liabilities | 2,141 | 3,765 |
Fair Value, measurements, recurring | Foreign exchange contracts | ||
Assets: | ||
Derivative asset | 7,577 | 276 |
Liabilities: | ||
Derivative liabilities | 3,245 | 3,940 |
Fair Value, measurements, recurring | U.S. Treasury and other U.S. government agencies | ||
Assets: | ||
Trading account assets | 170,378 | 137,637 |
Investment securities available for sale | 2,570,313 | 3,127,525 |
Fair Value, measurements, recurring | Interest rate contracts | ||
Assets: | ||
Trading account assets | 780,757 | 313,573 |
Liabilities: | ||
Trading account liabilities | 187,995 | 97,881 |
Fair Value, measurements, recurring | Foreign exchange contracts | ||
Assets: | ||
Trading account assets | 57,647 | 22,766 |
Liabilities: | ||
Trading account liabilities | 54,890 | 20,678 |
Fair Value, measurements, recurring | Mortgage-backed securities | ||
Assets: | ||
Investment securities available for sale | 1,185,676 | 1,325,857 |
Fair Value, measurements, recurring | Collateralized mortgage obligations | ||
Assets: | ||
Investment securities available for sale | 2,588,110 | 2,781,125 |
Fair Value, measurements, recurring | State and political subdivisions | ||
Assets: | ||
Trading account assets | 348 | |
Investment securities available for sale | 717 | 798 |
Fair Value, measurements, recurring | Equity securities | ||
Assets: | ||
Other assets | 19,990 | 19,038 |
Fair Value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets, Level 1 | ||
Assets: | ||
Trading account assets | 170,378 | 137,637 |
Investment securities available for sale | 2,091,237 | 2,598,471 |
Derivative asset | 0 | 38 |
Liabilities: | ||
Trading account liabilities | 0 | 0 |
Fair Value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets, Level 1 | Interest rate contracts | ||
Assets: | ||
Derivative asset | 0 | 38 |
Fair Value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets, Level 1 | U.S. Treasury and other U.S. government agencies | ||
Assets: | ||
Trading account assets | 170,378 | 137,637 |
Investment securities available for sale | 2,091,237 | 2,598,471 |
Fair Value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets, Level 1 | Equity securities | ||
Assets: | ||
Other assets | 19,990 | 19,038 |
Fair Value, measurements, recurring | Significant Other Observable Inputs, Level 2 | ||
Assets: | ||
Trading account assets | 838,752 | 336,339 |
Investment securities available for sale | 4,253,579 | 4,636,834 |
Loans held for sale | 117,752 | 112,058 |
Derivative asset | 27,016 | 15,517 |
Liabilities: | ||
Trading account liabilities | 242,885 | 118,559 |
Derivative liabilities | 20,605 | 11,437 |
Fair Value, measurements, recurring | Significant Other Observable Inputs, Level 2 | Interest rate contracts | ||
Assets: | ||
Derivative asset | 16,867 | 10,781 |
Liabilities: | ||
Derivative liabilities | 15,219 | 3,732 |
Fair Value, measurements, recurring | Significant Other Observable Inputs, Level 2 | Equity contracts | ||
Assets: | ||
Derivative asset | 2,572 | 4,460 |
Liabilities: | ||
Derivative liabilities | 2,141 | 3,765 |
Fair Value, measurements, recurring | Significant Other Observable Inputs, Level 2 | Foreign exchange contracts | ||
Assets: | ||
Derivative asset | 7,577 | 276 |
Liabilities: | ||
Derivative liabilities | 3,245 | 3,940 |
Fair Value, measurements, recurring | Significant Other Observable Inputs, Level 2 | U.S. Treasury and other U.S. government agencies | ||
Assets: | ||
Trading account assets | 0 | |
Investment securities available for sale | 479,076 | 529,054 |
Fair Value, measurements, recurring | Significant Other Observable Inputs, Level 2 | Interest rate contracts | ||
Assets: | ||
Trading account assets | 780,757 | 313,573 |
Liabilities: | ||
Trading account liabilities | 187,995 | 97,881 |
Fair Value, measurements, recurring | Significant Other Observable Inputs, Level 2 | Foreign exchange contracts | ||
Assets: | ||
Trading account assets | 57,647 | 22,766 |
Liabilities: | ||
Trading account liabilities | 54,890 | 20,678 |
Fair Value, measurements, recurring | Significant Other Observable Inputs, Level 2 | Mortgage-backed securities | ||
Assets: | ||
Investment securities available for sale | 1,185,676 | 1,325,857 |
Fair Value, measurements, recurring | Significant Other Observable Inputs, Level 2 | Collateralized mortgage obligations | ||
Assets: | ||
Investment securities available for sale | 2,588,110 | 2,781,125 |
Fair Value, measurements, recurring | Significant Other Observable Inputs, Level 2 | State and political subdivisions | ||
Assets: | ||
Trading account assets | 348 | |
Investment securities available for sale | 717 | 798 |
Fair Value, measurements, recurring | Fair Value, Inputs, Level 3 | ||
Assets: | ||
Trading account assets | 0 | 0 |
Investment securities available for sale | 0 | 0 |
Derivative asset | 14,324 | 3,088 |
Liabilities: | ||
Derivative liabilities | 1,914 | 0 |
Fair Value, measurements, recurring | Fair Value, Inputs, Level 3 | Interest rate contracts | ||
Assets: | ||
Derivative asset | 14,324 | 3,088 |
Liabilities: | ||
Derivative liabilities | 1,914 | 0 |
Fair Value, measurements, recurring | Fair Value, Inputs, Level 3 | Interest rate contracts | ||
Assets: | ||
Derivative asset | 12,410 | 3,088 |
Other assets, MSR investments | Fair Value, measurements, recurring | ||
Assets: | ||
Other assets | 31,232 | 42,022 |
Other assets, MSR investments | Fair Value, measurements, recurring | Fair Value, Inputs, Level 3 | ||
Assets: | ||
Other assets | 31,232 | 42,022 |
Other assets - SBIC investments | Fair Value, measurements, recurring | ||
Assets: | ||
Other assets | 156,400 | 119,475 |
Other assets - SBIC investments | Fair Value, measurements, recurring | Fair Value, Inputs, Level 3 | ||
Assets: | ||
Other assets | $ 156,400 | $ 119,475 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets measured on a recurring basis (Details) - Fair Value, measurements, recurring - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of year | $ 3,088 | $ 2,012 | |
Total gains or losses (realized/unrealized): | |||
Included in earnings | [1] | 9,322 | 1,146 |
Purchases, issuances, sales and settlements: | |||
Balance, end of year | 12,410 | 3,158 | |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | 9,322 | 1,146 | |
Other assets - MSRs | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of year | 42,022 | 51,539 | |
Total gains or losses (realized/unrealized): | |||
Included in earnings | [1] | (12,461) | (5,053) |
Purchases, issuances, sales and settlements: | |||
Issuances | 1,671 | 1,059 | |
Balance, end of year | 31,232 | 47,545 | |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | (12,461) | (5,053) | |
Other assets - SBIC investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of year | 119,475 | 80,074 | |
Total gains or losses (realized/unrealized): | |||
Included in earnings | [1] | 27,658 | 7,557 |
Purchases, issuances, sales and settlements: | |||
Purchases | 9,267 | 5,712 | |
Balance, end of year | 156,400 | 93,343 | |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | $ 27,658 | $ 7,557 | |
[1] | Included in noninterest income in the Unaudited Condensed Consolidated Statements of Income. |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets measured on nonrecurring basis (Details) - Fair Value, measurements, nonrecurring - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO, fair value | $ 21,392 | $ 14,983 |
OREO, total gains (losses) | (707) | (1,973) |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO, fair value | $ 21,392 | $ 14,983 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative information about unobservable inputs for material assets and liabilities measured using fair value (Details) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Derivative asset | $ 879,744,000 | $ 354,982,000 | |
Debt securities held to maturity, estimated fair value | 8,267,393,000 | 6,921,158,000 | |
Fair Value, measurements, recurring | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Derivative asset | 41,340,000 | 18,643,000 | |
Fair Value, Inputs, Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Debt securities held to maturity, estimated fair value | 630,853,000 | 668,311,000 | |
Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Derivative asset | 14,324,000 | 3,088,000 | |
Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Interest rate contracts | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Derivative asset | 12,410,000 | 3,088,000 | |
Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Other assets - MSRs | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other assets | 31,232,000 | 42,022,000 | |
Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Other assets - SBIC investments | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other assets | 156,400,000 | 119,475,000 | |
Fair Value, Inputs, Level 3 | Fair Value, measurements, nonrecurring | Debt securities held to maturity | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Debt securities held to maturity, estimated fair value | 2,177,000 | ||
Fair Value, Inputs, Level 3 | Fair Value, measurements, nonrecurring | Impaired loans | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired loans | 484,000 | ||
Fair Value, Inputs, Level 3 | Fair Value, measurements, nonrecurring | OREO | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other real estate owned | $ 21,392,000 | $ 21,583,000 | |
Closing ratios | Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Minimum | Interest rate contracts | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Derivative asset, measurement input | 0.078 | 0.168 | |
Closing ratios | Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Maximum | Interest rate contracts | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Derivative asset, measurement input | 0.998 | 1 | |
Closing ratios | Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Average | Interest rate contracts | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Derivative asset, measurement input | 0.616 | 0.601 | |
Cap grids | Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Minimum | Interest rate contracts | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Derivative asset, measurement input | (0.002) | 0.005 | |
Cap grids | Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Maximum | Interest rate contracts | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Derivative asset, measurement input | 0.026 | 0.025 | |
Cap grids | Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Average | Interest rate contracts | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Derivative asset, measurement input | 0.009 | 0.009 | |
Discount rate | Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Minimum | Other assets - MSRs | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other assets, measurement input | 0.060 | 0.060 | |
Discount rate | Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Maximum | Other assets - MSRs | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other assets, measurement input | 0.083 | 0.090 | |
Discount rate | Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Average | Other assets - MSRs | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other assets, measurement input | 0.062 | 0.064 | |
Constant prepayment rate or life speed | Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Minimum | Other assets - MSRs | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other assets, measurement input | 0.004 | 0 | |
Constant prepayment rate or life speed | Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Maximum | Other assets - MSRs | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other assets, measurement input | 0.792 | 0.800 | |
Constant prepayment rate or life speed | Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Average | Other assets - MSRs | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other assets, measurement input | 0.194 | 0.146 | |
Cost to service | Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Minimum | Other assets - MSRs | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other assets, measurement input | 65 | 65 | |
Cost to service | Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Maximum | Other assets - MSRs | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other assets, measurement input | 4,000 | 4,000 | |
Cost to service | Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Average | Other assets - MSRs | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other assets, measurement input | 92 | 90 | |
Transaction price | Fair Value, Inputs, Level 3 | Fair Value, measurements, recurring | Average | Other assets - SBIC investments | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other assets, measurement input | 0 | 0 | |
Prepayment rate | Fair Value, Inputs, Level 3 | Fair Value, measurements, nonrecurring | Minimum | Debt securities held to maturity | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Debt securities held to maturity, estimated fair value, measurement input | 13.700 | ||
Prepayment rate | Fair Value, Inputs, Level 3 | Fair Value, measurements, nonrecurring | Maximum | Debt securities held to maturity | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Debt securities held to maturity, estimated fair value, measurement input | 14.700 | ||
Prepayment rate | Fair Value, Inputs, Level 3 | Fair Value, measurements, nonrecurring | Average | Debt securities held to maturity | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Debt securities held to maturity, estimated fair value, measurement input | 0.142 | ||
Default rate | Fair Value, Inputs, Level 3 | Fair Value, measurements, nonrecurring | Minimum | Debt securities held to maturity | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Debt securities held to maturity, estimated fair value, measurement input | 3.100 | ||
Default rate | Fair Value, Inputs, Level 3 | Fair Value, measurements, nonrecurring | Maximum | Debt securities held to maturity | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Debt securities held to maturity, estimated fair value, measurement input | 4.900 | ||
Default rate | Fair Value, Inputs, Level 3 | Fair Value, measurements, nonrecurring | Average | Debt securities held to maturity | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Debt securities held to maturity, estimated fair value, measurement input | 0.040 | ||
Loss severity | Fair Value, Inputs, Level 3 | Fair Value, measurements, nonrecurring | Minimum | Debt securities held to maturity | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Debt securities held to maturity, estimated fair value, measurement input | 50.300 | ||
Loss severity | Fair Value, Inputs, Level 3 | Fair Value, measurements, nonrecurring | Maximum | Debt securities held to maturity | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Debt securities held to maturity, estimated fair value, measurement input | 61.900 | ||
Loss severity | Fair Value, Inputs, Level 3 | Fair Value, measurements, nonrecurring | Average | Debt securities held to maturity | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Debt securities held to maturity, estimated fair value, measurement input | 0.561 | ||
Appraised value | Fair Value, Inputs, Level 3 | Fair Value, measurements, nonrecurring | Minimum | Impaired loans | Appraised value | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired loans, measurement input | 0 | ||
Appraised value | Fair Value, Inputs, Level 3 | Fair Value, measurements, nonrecurring | Maximum | Impaired loans | Appraised value | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired loans, measurement input | 0.700 | ||
Appraised value | Fair Value, Inputs, Level 3 | Fair Value, measurements, nonrecurring | Average | Impaired loans | Appraised value | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired loans, measurement input | 0.097 | ||
Appraised value | Fair Value, Inputs, Level 3 | Fair Value, measurements, nonrecurring | Average | OREO | Appraised value | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other real estate owned, measurement input | [1] | 0.080 | 0.080 |
[1] | Represents discount to appraised value for estimated costs to sell. |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying value and estimated fair value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Assets: | |||
Cash and cash equivalents | $ 5,513,268 | $ 6,938,698 | $ 6,008,461 |
Debt securities held to maturity | 7,878,158 | 6,797,046 | |
Debt securities held to maturity, estimated fair value | 8,267,393 | 6,921,158 | |
Liabilities: | |||
Deposits | 77,234,507 | 74,985,283 | |
Fair Value, Inputs, Level 1 | |||
Assets: | |||
Cash and cash equivalents, estimated fair value | 5,513,268 | 6,938,698 | |
Debt securities held to maturity, estimated fair value | 1,415,683 | 1,340,448 | |
Fair Value, Inputs, Level 2 | |||
Assets: | |||
Debt securities held to maturity, estimated fair value | 6,220,857 | 4,912,399 | |
Liabilities: | |||
Deposits, estimated fair value | 77,257,753 | 75,024,350 | |
FHLB and other borrowings, estimated fair value | 3,580,396 | 3,721,949 | |
Federal funds purchased and securities sold under agreements to repurchase, estimated fair value | 409,784 | 173,028 | |
Fair Value, Inputs, Level 3 | |||
Assets: | |||
Debt securities held to maturity, estimated fair value | 630,853 | 668,311 | |
Loans, net, estimated fair value | 67,372,923 | 60,869,662 | |
Reported value measurement | |||
Assets: | |||
Cash and cash equivalents | 5,513,268 | 6,938,698 | |
Debt securities held to maturity | 7,878,158 | 6,797,046 | |
Loans | 67,539,414 | 63,946,857 | |
Liabilities: | |||
Deposits | 77,234,507 | 74,985,283 | |
FHLB and other borrowings | 3,790,137 | 3,690,044 | |
Federal funds purchased and securities sold under agreements to repurchase | 409,784 | 173,028 | |
Estimate of fair value measurement | |||
Assets: | |||
Cash and cash equivalents, estimated fair value | 5,513,268 | 6,938,698 | |
Debt securities held to maturity, estimated fair value | 8,267,393 | 6,921,158 | |
Loans, net, estimated fair value | 67,372,923 | 60,869,662 | |
Liabilities: | |||
Deposits, estimated fair value | 77,257,753 | 75,024,350 | |
FHLB and other borrowings, estimated fair value | 3,580,396 | 3,721,949 | |
Federal funds purchased and securities sold under agreements to repurchase, estimated fair value | $ 409,784 | $ 173,028 |
Fair Value Measurements - Unpai
Fair Value Measurements - Unpaid Principle Balances (Details) - Residential mortgage loans held for sale - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Aggregate Fair Value | $ 117,752 | $ 112,058 |
Aggregate Unpaid Principal Balance | 111,440 | 108,345 |
Difference | $ 6,312 | $ 3,713 |
Comprehensive Income - Changes
Comprehensive Income - Changes in Components of OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Comprehensive Income (Loss), Pretax [Abstract] | ||
Other comprehensive income | $ 477,292 | $ 97,183 |
Other Comprehensive Income (Loss), Tax Expense/(Benefit) [Abstract] | ||
Other comprehensive income | 113,881 | 23,034 |
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||
Change in unamortized net holding losses on debt securities held to maturity | (1,575) | (1,743) |
Change in unamortized non-credit related impairment on debt securities held to maturity | (118) | (368) |
Change in defined benefit plans | (1,754) | (3,119) |
Other comprehensive income, net of tax | 363,411 | 74,149 |
Unrealized Gains (Losses) on Debt Securities Available for Sale and Transferred to Held to Maturity | ||
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||
Unrealized holding gains arising during period from debt securities available for sale | 99,699 | 51,700 |
Less: reclassification adjustment for net gains on sale of debt securities in net income | 12,997 | 5,091 |
Other comprehensive income, net of tax | 86,702 | 46,609 |
Accumulated Gains (Losses) on Cash Flow Hedging Instruments | ||
Other Comprehensive Income (Loss), Pretax [Abstract] | ||
Other comprehensive income | 360,963 | 31,518 |
Other Comprehensive Income (Loss), Tax Expense/(Benefit) [Abstract] | ||
Other comprehensive income | 86,126 | 7,465 |
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||
Unrealized holding gains arising during period from debt securities available for sale | 278,675 | 23,001 |
Less: reclassification adjustment for net gains on sale of debt securities in net income | 3,838 | (1,052) |
Other comprehensive income, net of tax | 274,837 | 24,053 |
Defined Benefit Plan Adjustment | ||
Other Comprehensive Income (Loss), Pretax [Abstract] | ||
Change in defined benefit plans | 2,301 | 4,089 |
Other Comprehensive Income (Loss), Tax Expense/(Benefit) [Abstract] | ||
Change in defined benefit plans | 547 | 970 |
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||
Unrealized holding gains arising during period from debt securities available for sale | 0 | 0 |
Less: reclassification adjustment for net gains on sale of debt securities in net income | (1,754) | (3,119) |
Change in defined benefit plans | 1,754 | 3,119 |
Other comprehensive income, net of tax | 1,754 | 3,119 |
Available-for-sale Securities | Unrealized Gains (Losses) on Debt Securities Available for Sale and Transferred to Held to Maturity | ||
Other Comprehensive Income (Loss), Pretax [Abstract] | ||
Unrealized holding gains arising during period from debt securities available for sale | 130,943 | 67,768 |
Less: reclassification adjustment for net gains on sale of debt securities in net income | 19,139 | 8,958 |
Other comprehensive income | 111,804 | 58,810 |
Other Comprehensive Income (Loss), Tax Expense/(Benefit) [Abstract] | ||
Unrealized holding gains arising during period from debt securities available for sale | 31,244 | 16,068 |
Less: reclassification adjustment for net gains on sale of debt securities in net income | 4,567 | 2,124 |
Other comprehensive income | 26,677 | 13,944 |
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||
Unrealized holding gains arising during period from debt securities available for sale | 99,699 | 51,700 |
Less: reclassification adjustment for net gains on sale of debt securities in net income | 14,572 | 6,834 |
Other comprehensive income, net of tax | 85,127 | 44,866 |
Held-to-maturity Securities | Change in unamortized net holding gains on debt securities held to maturity | ||
Other Comprehensive Income (Loss), Pretax [Abstract] | ||
Change in unamortized net holding gains on debt securities held to maturity | 2,069 | 2,284 |
Other Comprehensive Income (Loss), Tax Expense/(Benefit) [Abstract] | ||
Change in unamortized net holding gains on debt securities held to maturity | 494 | 541 |
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||
Change in unamortized net holding losses on debt securities held to maturity | 1,575 | 1,743 |
Held-to-maturity Securities | Change in unamortized non-credit related impairment on debt securities held to maturity | ||
Other Comprehensive Income (Loss), Pretax [Abstract] | ||
Change in unamortized non-credit related impairment on debt securities held to maturity | 155 | 482 |
Other Comprehensive Income (Loss), Tax Expense/(Benefit) [Abstract] | ||
Change in unamortized non-credit related impairment on debt securities held to maturity | 37 | 114 |
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||
Change in unamortized non-credit related impairment on debt securities held to maturity | 118 | 368 |
Held-to-maturity Securities | Unrealized Gains (Losses) on Debt Securities Held to Maturity | ||
Other Comprehensive Income (Loss), Pretax [Abstract] | ||
Other comprehensive income | 2,224 | 2,766 |
Other Comprehensive Income (Loss), Tax Expense/(Benefit) [Abstract] | ||
Other comprehensive income | 531 | 655 |
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||
Other comprehensive income, net of tax | $ 1,693 | $ 2,111 |
Comprehensive Income - AOCI (De
Comprehensive Income - AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | ||
Accumulated Comprehensive Income [Roll Forward] | ||||||
Balance, beginning of period | $ 13,386,589 | $ 13,512,529 | ||||
Balance, as adjusted | $ 13,236,376 | $ 13,515,989 | ||||
Net current period other comprehensive income | 363,411 | 74,149 | ||||
Balance, end of period | 11,358,354 | 13,727,537 | ||||
Total | ||||||
Accumulated Comprehensive Income [Roll Forward] | ||||||
Balance, beginning of period | (1,072) | (186,848) | ||||
Cumulative effect adjustment related to ASU adoptions | [1] | $ (35,436) | ||||
Balance, as adjusted | $ (1,072) | (222,284) | ||||
Other comprehensive income before reclassifications | 378,374 | 74,701 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (14,963) | (552) | ||||
Net current period other comprehensive income | 363,411 | 74,149 | ||||
Balance, end of period | 362,339 | (148,135) | ||||
Unrealized Gains (Losses) on Debt Securities Available for Sale and Transferred to Held to Maturity | ||||||
Accumulated Comprehensive Income [Roll Forward] | ||||||
Balance, beginning of period | (40,080) | (158,433) | ||||
Cumulative effect adjustment related to ASU adoptions | [1] | (25,844) | ||||
Balance, as adjusted | (184,277) | |||||
Other comprehensive income before reclassifications | 99,699 | 51,700 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (12,997) | (5,091) | ||||
Net current period other comprehensive income | 86,702 | 46,609 | ||||
Balance, end of period | 46,622 | (137,668) | ||||
Accumulated Gains (Losses) on Cash Flow Hedging Instruments | ||||||
Accumulated Comprehensive Income [Roll Forward] | ||||||
Balance, beginning of period | 91,445 | 6,175 | ||||
Cumulative effect adjustment related to ASU adoptions | [1] | (1,040) | ||||
Balance, as adjusted | 5,135 | |||||
Other comprehensive income before reclassifications | 278,675 | 23,001 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (3,838) | 1,052 | ||||
Net current period other comprehensive income | 274,837 | 24,053 | ||||
Balance, end of period | 366,282 | 29,188 | ||||
Defined Benefit Plan Adjustment | ||||||
Accumulated Comprehensive Income [Roll Forward] | ||||||
Balance, beginning of period | (46,666) | (29,495) | ||||
Cumulative effect adjustment related to ASU adoptions | [1] | (7,351) | ||||
Balance, as adjusted | (36,846) | |||||
Other comprehensive income before reclassifications | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,754 | 3,119 | ||||
Net current period other comprehensive income | 1,754 | 3,119 | ||||
Balance, end of period | (44,912) | (33,727) | ||||
Unamortized Impairment Losses on Debt Securities Held to Maturity | ||||||
Accumulated Comprehensive Income [Roll Forward] | ||||||
Balance, beginning of period | (5,771) | (5,095) | ||||
Cumulative effect adjustment related to ASU adoptions | [1] | $ (1,201) | ||||
Balance, as adjusted | $ (6,296) | |||||
Other comprehensive income before reclassifications | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 118 | 368 | ||||
Net current period other comprehensive income | 118 | 368 | ||||
Balance, end of period | $ (5,653) | $ (5,928) | ||||
[1] | Related to the Company's adoption of ASU 2017-12 and ASU 2018-02 on January 1, 2019. |
Comprehensive Income - Reclassi
Comprehensive Income - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Investment securities gains, net | $ 19,139 | $ 8,958 | |
Interest on debt securities held to maturity | 41,102 | 29,495 | |
Interest and fees on loans | 715,476 | 800,488 | |
Interest on FHLB and other borrowings | (21,176) | (37,626) | |
Net (loss) income before income tax expense | (2,242,354) | 176,584 | |
Income tax (expense) benefit | 5,069 | (35,603) | |
Net (loss) income | (2,237,285) | 140,981 | |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Unrealized Gains (Losses) on Debt Securities Available for Sale and Transferred to Held to Maturity | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Investment securities gains, net | [1] | 19,139 | 8,958 |
Interest on debt securities held to maturity | [1] | (2,069) | (2,284) |
Net (loss) income before income tax expense | [1] | 17,070 | 6,674 |
Income tax (expense) benefit | [1] | (4,073) | (1,583) |
Net (loss) income | [1] | 12,997 | 5,091 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Accumulated Gains (Losses) on Cash Flow Hedging Instruments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest and fees on loans | [1] | 5,459 | (1,210) |
Interest on FHLB and other borrowings | [1] | (419) | (169) |
Net (loss) income before income tax expense | [1] | 5,040 | (1,379) |
Income tax (expense) benefit | [1] | (1,202) | 327 |
Net (loss) income | [1] | 3,838 | (1,052) |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Defined Benefit Plan Adjustment | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net periodic expense | [1],[2] | (2,301) | (4,089) |
Income tax (expense) benefit | [1] | 547 | 970 |
Net (loss) income | [1] | (1,754) | (3,119) |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Unamortized Impairment Losses on Debt Securities Held to Maturity | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest on debt securities held to maturity | [1] | (155) | (482) |
Income tax (expense) benefit | [1] | 37 | 114 |
Net (loss) income | [1] | $ (118) | $ (368) |
[1] | Amounts in parentheses indicate debits to the Unaudited Condensed Consolidated Statements of Income. | ||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 17, Benefit Plans, in the Notes to the December 31, 2019, Consolidated Financial Statements for additional details). |
Supplemental Disclosure for S_3
Supplemental Disclosure for Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental disclosures of cash flow information: | ||||
Interest paid | $ 207,334 | $ 194,297 | ||
Net income taxes paid | 7,208 | 320 | ||
Operating cash flows from operating leases | 12,499 | 13,417 | ||
Operating cash flows from finance leases | 140 | 159 | ||
Financing cash flows from finance leases | 414 | 386 | ||
Supplemental schedule of noncash activities: | ||||
Transfer of loans and loans held for sale to OREO | 5,735 | 6,534 | ||
Transfer of loans to loans held for sale | 0 | 1,196,883 | ||
Right-of-use assets obtained in exchange for lease obligations- operating leases | 17,568 | 22,108 | ||
Cash and cash equivalents | 5,513,268 | 6,008,461 | $ 6,938,698 | |
Restricted cash in other assets | 306,798 | 131,378 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 5,820,066 | $ 6,139,839 | $ 7,156,689 | $ 3,501,380 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Net interest income (expense) | $ 589,455 | $ 683,089 |
Provision for credit losses | 356,991 | 182,292 |
Noninterest income | 334,242 | 257,760 |
Noninterest expense | 2,809,060 | 581,973 |
Net (loss) income before income tax expense | (2,242,354) | 176,584 |
Income tax expense (benefit) | (5,069) | 35,603 |
Net (loss) income | (2,237,285) | 140,981 |
Less: net income attributable to noncontrolling interests | 501 | 556 |
Net (loss) income attributable to BBVA USA Bancshares, Inc. | (2,237,786) | 140,425 |
Average assets | 96,356,113 | 92,985,876 |
Operating Segments | Commercial Banking and Wealth | ||
Segment Reporting Information [Line Items] | ||
Net interest income (expense) | 266,837 | 315,332 |
Provision for credit losses | 42,184 | 57,440 |
Noninterest income | 68,535 | 57,375 |
Noninterest expense | 174,583 | 167,968 |
Net (loss) income before income tax expense | 118,605 | 147,299 |
Income tax expense (benefit) | 24,685 | 30,933 |
Net (loss) income | 93,920 | 116,366 |
Less: net income attributable to noncontrolling interests | 116 | 96 |
Net (loss) income attributable to BBVA USA Bancshares, Inc. | 93,804 | 116,270 |
Average assets | 41,177,867 | 40,393,329 |
Operating Segments | Retail Banking | ||
Segment Reporting Information [Line Items] | ||
Net interest income (expense) | 295,009 | 349,377 |
Provision for credit losses | 66,729 | 103,405 |
Noninterest income | 130,704 | 111,919 |
Noninterest expense | 305,258 | 297,923 |
Net (loss) income before income tax expense | 53,726 | 59,968 |
Income tax expense (benefit) | 11,494 | 12,593 |
Net (loss) income | 42,232 | 47,375 |
Less: net income attributable to noncontrolling interests | 0 | 0 |
Net (loss) income attributable to BBVA USA Bancshares, Inc. | 42,232 | 47,375 |
Average assets | 18,697,233 | 18,932,712 |
Operating Segments | Corporate and Investment Banking | ||
Segment Reporting Information [Line Items] | ||
Net interest income (expense) | 30,779 | 33,818 |
Provision for credit losses | 92,970 | 25,930 |
Noninterest income | 40,135 | 36,517 |
Noninterest expense | 61,395 | 39,879 |
Net (loss) income before income tax expense | (83,451) | 4,526 |
Income tax expense (benefit) | (17,525) | 950 |
Net (loss) income | (65,926) | 3,576 |
Less: net income attributable to noncontrolling interests | 0 | 0 |
Net (loss) income attributable to BBVA USA Bancshares, Inc. | (65,926) | 3,576 |
Average assets | 8,282,036 | 8,214,217 |
Operating Segments | Treasury | ||
Segment Reporting Information [Line Items] | ||
Net interest income (expense) | (36,427) | (20,024) |
Provision for credit losses | (237) | 373 |
Noninterest income | 26,202 | 12,486 |
Noninterest expense | 4,046 | 5,589 |
Net (loss) income before income tax expense | (14,034) | (13,500) |
Income tax expense (benefit) | (2,947) | (2,835) |
Net (loss) income | (11,087) | (10,665) |
Less: net income attributable to noncontrolling interests | 396 | 405 |
Net (loss) income attributable to BBVA USA Bancshares, Inc. | (11,483) | (11,070) |
Average assets | 20,254,208 | 17,214,202 |
Corporate Support and Other | ||
Segment Reporting Information [Line Items] | ||
Net interest income (expense) | 33,257 | 4,586 |
Provision for credit losses | 155,345 | (4,856) |
Noninterest income | 68,666 | 39,463 |
Noninterest expense | 2,263,778 | 70,614 |
Net (loss) income before income tax expense | (2,317,200) | (21,709) |
Income tax expense (benefit) | (20,776) | (6,038) |
Net (loss) income | (2,296,424) | (15,671) |
Less: net income attributable to noncontrolling interests | (11) | 55 |
Net (loss) income attributable to BBVA USA Bancshares, Inc. | (2,296,413) | (15,726) |
Average assets | $ 7,944,769 | $ 8,231,416 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Mar. 16, 2017 | Mar. 16, 2012 | |
Related Party Transaction [Line Items] | |||||
Securities purchased under agreements to resell | $ 245,416,000 | $ 178,914,000 | |||
Securities sold under agreements to repurchase | 409,784,000 | 173,028,000 | |||
Preferred stock | 229,475,000 | 229,475,000 | |||
Preferred stock dividends | 4,155,000 | $ 4,485,000 | |||
Transfer of loans to loans held for sale | 0 | 1,196,883,000 | |||
BBVA | |||||
Related Party Transaction [Line Items] | |||||
Securities purchased under agreements to resell | 138,265,000 | 178,914,000 | |||
Securities sold under agreements to repurchase | 53,574,000 | 16,596,000 | |||
BBVA | BBVA Compass Bancshares, Inc. | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 4,100,000 | 4,100,000 | |||
Fees on agreements | 9,900,000 | 8,500,000 | |||
Derivatives designated as hedging instrument | BBVA | |||||
Related Party Transaction [Line Items] | |||||
Derivative, notional amount | 3,500,000,000 | 3,400,000,000 | |||
Free-standing derivatives not designated as hedging instrument | Free-standing derivative instruments – risk management and other purposes | BBVA | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amount of transaction | (60,621,000) | (9,688,000) | |||
Preferred Stock | Series A Preferred Stock | BBVA | |||||
Related Party Transaction [Line Items] | |||||
Preferred stock | 229,000,000 | 229,000,000 | |||
Preferred stock dividends | 4,200,000 | 4,500,000 | |||
Cash flow hedges | Derivatives designated as hedging instrument | BBVA | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amount of transaction | (574,000) | 102,000 | |||
Fair value hedges | BBVA | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amount of transaction | (799,000) | (354,000) | |||
BSI | Revolving Credit Facility | Line of Credit | BBVA Compass Bancshares, Inc. | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | 0 | $ 0 | $ 450,000,000 | $ 420,000,000 | |
BSI | Uncommitted Demand Facility | Revolving Credit Facility | Line of Credit | BBVA Compass Bancshares, Inc. | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | $ 1,000,000,000 | ||||
BSI | Revolving Note and Cash Subordinated Agreement | BBVA Compass Bancshares, Inc. | |||||
Related Party Transaction [Line Items] | |||||
Interest expense | 55,000 | 25,000 | |||
Loans and Loans Held for Sale Excluding Loans Originated for Sale in Secondary Market | |||||
Related Party Transaction [Line Items] | |||||
Transfer of loans to loans held for sale | $ 0 | 1,196,883,000 | |||
Gain on sale of loans | $ 778,000 |