Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 26, 2019 | |
Cover page. | ||
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Incorporation, State or Country Code | MI | |
Title of 12(b) Security | Common Stock | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Registrant Name | CHEMICAL FINANCIAL CORPORATION | |
Entity Central Index Key | 0000019612 | |
Document Type | 10-Q | |
Entity File Number | 000-08185 | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 71,558,755 | |
City Area Code | 800 | |
Local Phone Number | 867-9757 | |
Trading Symbol | CHFC | |
Security Exchange Name | NASDAQ | |
Entity Tax Identification Number | 38-2022454 | |
Entity Address, Postal Zip Code | 48226 | |
Entity Address, Address Line One | 333 W. Fort Street, | |
Entity Address, Address Line Two | Suite 1800 | |
Entity Address, City or Town | Detroit, | |
Entity Address, State or Province | MI |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Cash and cash equivalents: | ||
Cash and cash due from banks | $ 200,034 | $ 228,527 |
Interest-bearing deposits with the Federal Reserve Bank and other banks and federal funds sold | 392,724 | 267,312 |
Total cash and cash equivalents | 592,758 | 495,839 |
Investment securities: | ||
Carried at fair value | 3,369,872 | 3,021,832 |
Held-to-maturity, at amortized cost (fair value of $575,502 and $618,672, respectively) | 566,046 | 624,099 |
Total investment securities | 3,935,918 | 3,645,931 |
Loans held-for-sale, at fair value | 33,019 | 85,030 |
Loans | 15,861,903 | 15,269,779 |
Allowance for loan losses | (115,967) | (109,984) |
Net loans | 15,745,936 | 15,159,795 |
Premises and equipment | 123,708 | 123,442 |
Loan servicing rights, at fair value | 60,658 | 71,013 |
Goodwill | 1,134,568 | 1,134,568 |
Core deposit intangibles | 25,835 | 28,556 |
Interest receivable and other assets | 839,365 | 754,167 |
Total assets | 22,491,765 | 21,498,341 |
Deposits: | ||
Noninterest-bearing | 3,925,777 | 3,809,252 |
Interest-bearing | 11,953,659 | 11,784,030 |
Total deposits | 15,879,436 | 15,593,282 |
Collateralized customer deposits | 291,671 | 382,687 |
Short-term borrowings | 2,615,000 | 2,035,000 |
Long-term borrowings | 426,069 | 426,002 |
Interest payable and other liabilities | 326,054 | 225,110 |
Total liabilities | 19,538,230 | 18,662,081 |
Shareholders' equity | ||
Preferred stock, none issued | 0 | 0 |
Common stock issued | 71,559 | 71,460 |
Additional paid-in capital | 2,212,665 | 2,209,761 |
Retained earnings | 699,712 | 616,149 |
Accumulated other comprehensive loss | (30,401) | (61,110) |
Total shareholders' equity | 2,953,535 | 2,836,260 |
Total liabilities and shareholders' equity | $ 22,491,765 | $ 21,498,341 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Held-to-maturity, fair value | $ 575,502 | $ 618,672 |
Loan servicing rights, at fair value | $ 60,658 | $ 71,013 |
Preferred stock, no par value (dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 135,000,000 | 135,000,000 |
Common stock, shares issued (in shares) | 71,558,755 | 71,460,119 |
Common stock, shares outstanding (in shares) | 71,558,755 | 71,460,119 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income | ||||
Interest and fees on loans | $ 188,875 | $ 165,388 | $ 372,167 | $ 322,206 |
Interest on investment securities: | ||||
Taxable | 21,214 | 14,706 | 41,715 | 27,125 |
Tax-exempt | 7,297 | 5,998 | 14,467 | 11,554 |
Dividends on nonmarketable equity securities | 2,401 | 2,189 | 4,139 | 4,090 |
Interest on deposits with the Federal Reserve Bank and other banks and federal funds sold | 1,641 | 1,301 | 2,921 | 2,541 |
Total interest income | 221,428 | 189,582 | 435,409 | 367,516 |
Interest expense | ||||
Interest on deposits | 42,011 | 19,707 | 81,009 | 35,624 |
Interest on collateralized customer deposits | 537 | 641 | 1,164 | 1,165 |
Interest on short-term borrowings | 11,345 | 10,408 | 20,523 | 18,574 |
Interest on long-term borrowings | 2,374 | 1,289 | 4,728 | 2,753 |
Total interest expense | 56,267 | 32,045 | 107,424 | 58,116 |
Net interest income | 165,161 | 157,537 | 327,985 | 309,400 |
Provision for loan losses | 7,502 | 9,572 | 9,561 | 15,828 |
Net interest income after provision for loan losses | 157,659 | 147,965 | 318,424 | 293,572 |
Noninterest income | ||||
Net gain on sale of loans and other mortgage banking revenue | 4,532 | 8,844 | 5,426 | 21,379 |
Net gain on sale of investment securities | 4,160 | 3 | 4,247 | 3 |
Other | 8,504 | 7,494 | 13,717 | 14,985 |
Total noninterest income | 38,164 | 38,018 | 63,021 | 78,572 |
Operating expenses | ||||
Salaries, wages and employee benefits | 62,129 | 56,148 | 122,146 | 111,705 |
Occupancy | 7,786 | 7,679 | 16,063 | 15,690 |
Equipment and software | 7,076 | 8,276 | 14,055 | 15,935 |
Outside processing and service fees | 12,206 | 10,673 | 23,932 | 21,029 |
Merger expenses | 3,042 | 0 | 8,466 | 0 |
Other | 18,764 | 21,785 | 35,356 | 41,812 |
Total operating expenses | 111,003 | 104,561 | 220,018 | 206,171 |
Income before income taxes | 84,820 | 81,422 | 161,427 | 165,973 |
Income tax expense | 15,226 | 12,434 | 28,891 | 25,389 |
Net income | $ 69,594 | $ 68,988 | $ 132,536 | $ 140,584 |
Earnings per common share: | ||||
Basic earnings per common share (dollars per share) | $ 0.97 | $ 0.97 | $ 1.85 | $ 1.97 |
Diluted earnings per common share (dollars per share) | $ 0.96 | $ 0.96 | $ 1.84 | $ 1.95 |
Service charges and fees on deposit accounts | ||||
Noninterest income | ||||
Noninterest income | $ 8,247 | $ 9,690 | $ 16,214 | $ 19,124 |
Wealth management revenue | ||||
Noninterest income | ||||
Noninterest income | 6,966 | 7,188 | 12,838 | 13,499 |
Other charges and fees for customer services | ||||
Noninterest income | ||||
Noninterest income | $ 5,755 | $ 4,799 | $ 10,579 | $ 9,582 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 69,594 | $ 68,988 | $ 132,536 | $ 140,584 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized holding gains (losses) on securities carried at fair value arising during the period | 36,809 | (11,622) | 74,253 | (39,229) |
Reclassification adjustment for (gains) losses included in net income | (4,160) | (3) | (4,247) | (3) |
Tax effect | (6,856) | 2,441 | (14,701) | 8,239 |
Net unrealized gains (losses) on securities carried at fair value, net of tax | 25,793 | (9,184) | 55,305 | (30,993) |
Unrealized gains (losses) on interest rate swaps designated as cash flow hedges | (21,229) | 4,102 | (28,781) | 12,065 |
Reclassification adjustment for (gains) losses included in net income | (1,256) | (589) | (2,544) | (347) |
Tax effect | 4,722 | (738) | 6,578 | (2,461) |
Net unrealized (losses) gains on interest rate swaps designated as cash flow hedges, net of tax | (17,763) | 2,775 | (24,747) | 9,257 |
Adjustment for pension and other postretirement benefits | 96 | 142 | 191 | 284 |
Tax effect | (20) | (30) | (40) | (60) |
Net adjustment for pension and other postretirement benefits | 76 | 112 | 151 | 224 |
Other comprehensive income (loss), net of tax | 8,106 | (6,297) | 30,709 | (21,512) |
Total comprehensive income, net of tax | $ 77,700 | $ 62,691 | $ 163,245 | $ 119,072 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Stock options | Common stock | Common stockStock options | Additional paid-in capital | Additional paid-in capitalStock options | Retained earnings | Accumulated other comprehensive income (loss) | |
Changes in Stockholders' Equity | |||||||||
Cumulative effect adjustment of change in accounting policy, net of tax impact | [1] | $ 1,339 | $ 1,680 | $ (341) | |||||
Beginning balance at Dec. 31, 2017 | 2,668,749 | $ 71,207 | $ 2,203,637 | 419,403 | (25,498) | ||||
Changes in Stockholders' Equity | |||||||||
Comprehensive income | 119,072 | 140,584 | (21,512) | ||||||
Cash dividends | (40,137) | 40,137 | |||||||
Net shares issued under share-based compensation plans | $ (2,102) | $ 211 | $ (2,313) | ||||||
Share-based compensation expense | 4,078 | 0 | 4,078 | ||||||
Ending balance at Jun. 30, 2018 | 2,750,999 | 71,418 | 2,205,402 | 521,530 | (47,351) | ||||
Beginning balance at Mar. 31, 2018 | 2,704,703 | 71,350 | 2,201,803 | 472,604 | (41,054) | ||||
Changes in Stockholders' Equity | |||||||||
Comprehensive income | 62,691 | 68,988 | (6,297) | ||||||
Cash dividends | (20,062) | (20,062) | |||||||
Net shares issued under share-based compensation plans | 1,241 | 68 | 1,173 | ||||||
Share-based compensation expense | 2,426 | 0 | 2,426 | ||||||
Ending balance at Jun. 30, 2018 | 2,750,999 | 71,418 | 2,205,402 | 521,530 | (47,351) | ||||
Beginning balance at Dec. 31, 2018 | 2,836,260 | 71,460 | 2,209,761 | 616,149 | (61,110) | ||||
Changes in Stockholders' Equity | |||||||||
Comprehensive income | 163,245 | 132,536 | 30,709 | ||||||
Cash dividends | (48,973) | (48,973) | |||||||
Net shares issued under share-based compensation plans | (2,126) | 99 | (2,225) | ||||||
Share-based compensation expense | 5,129 | 0 | 5,129 | ||||||
Ending balance at Jun. 30, 2019 | 2,953,535 | 71,559 | 2,212,665 | 699,712 | (30,401) | ||||
Beginning balance at Mar. 31, 2019 | 2,897,509 | 71,551 | 2,209,860 | 654,605 | (38,507) | ||||
Changes in Stockholders' Equity | |||||||||
Comprehensive income | 77,700 | 69,594 | 8,106 | ||||||
Cash dividends | (24,487) | (24,487) | |||||||
Net shares issued under share-based compensation plans | $ 57 | $ 8 | $ 49 | ||||||
Share-based compensation expense | 2,756 | 0 | 2,756 | ||||||
Ending balance at Jun. 30, 2019 | $ 2,953,535 | $ 71,559 | $ 2,212,665 | $ 699,712 | $ (30,401) | ||||
[1] | Refer to Note 1 , Basis of Presentation and Significant Accounting Policies, Note 6 , Other Real Estate Owned and Repossessed Assets and Note 20 , Accumulated Other Comprehensive Loss for further details on the changes in accounting policy. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per common share (dollars per share) | $ 0.34 | $ 0.28 | $ 0.68 | $ 0.56 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Repayments of Other Debt | $ 0 | $ 42,000 |
Cash flows from operating activities | ||
Net income | 132,536 | 140,584 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 9,561 | 15,828 |
Gains on sales of loans | (11,538) | (5,531) |
Proceeds from sales of loans | 392,730 | 392,570 |
Valuation change in loans held-for-sale | 1,730 | 216 |
Loans originated for sale, net of repayments | (330,969) | (379,584) |
Net gains on sale of investment securities | (4,247) | (3) |
Net (gains) losses from sales/writedowns of other real estate and repossessed assets | (807) | 98 |
Depreciation of premises and equipment | 8,527 | 8,384 |
Amortization of intangible assets | 2,721 | 2,864 |
Additions to loan servicing rights | (4,242) | (4,251) |
Valuation change in loan servicing rights | 14,597 | (2,272) |
Net amortization of premiums and discounts on investment securities | 12,744 | 9,123 |
Share-based compensation expense | 5,129 | 4,078 |
Deferred income tax expense | 3,783 | 4,473 |
Change in deferred tax valuation allowance | 0 | (72) |
Net increase in interest receivable and other assets | (126,406) | (15,498) |
Net increase (decrease) in interest payable and other liabilities | 101,202 | (5,671) |
Net cash provided by operating activities | 207,051 | 165,336 |
Investment securities - carried at fair value | ||
Proceeds from maturities, calls and principal reductions | 338,123 | 157,185 |
Proceeds from sales and redemptions | 205,331 | 4,215 |
Purchases | (772,263) | (775,497) |
Investment securities – held-to-maturity: | ||
Proceeds from maturities, calls and principal reductions | 1,880 | 85,027 |
Purchases | (1,549) | (11,240) |
Net increase in loans | (602,373) | (439,390) |
Proceeds from sales of other real estate and repossessed assets | 5,311 | 7,646 |
Purchases of premises and equipment, net of disposals | (8,793) | (7,458) |
Proceeds from returns of investment in equity method investments | 162 | 269 |
Net cash used in investing activities | (834,171) | (979,243) |
Cash flows from financing activities | ||
Net increase in interest- and noninterest-bearing demand deposits and savings accounts | 388 | 247,254 |
Net increase in time deposits | 285,766 | 661,479 |
Net increase in collateralized customer deposits and other short-term borrowings | 488,984 | 58,702 |
Cash dividends paid | (48,973) | (40,137) |
Proceeds from directors’ stock plans and exercise of stock options, net of shares withheld | 520 | 2,558 |
Cash paid for payroll taxes upon conversion of share-based awards | (2,646) | (4,660) |
Net cash provided by financing activities | 724,039 | 883,196 |
Net increase in cash and cash equivalents | 96,919 | 69,289 |
Cash and cash equivalents at beginning of period | 495,839 | 455,991 |
Cash and cash equivalents at end of period | 592,758 | 525,280 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 107,783 | 56,575 |
Net income tax (refunds) payments | (4,709) | 4,599 |
Non-cash activities: | ||
Loans transferred to other real estate and repossessed assets | 6,729 | 5,093 |
Net transfer of loans held-for-sale to (from) loans held-for-investment | $ 58 | |
Net transfer of loans held-for-sale to (from) loans held-for-investment | $ (2,171) |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Nature of Operations Chemical Financial Corporation ("Corporation" or "Chemical") operates in a single operating segment — commercial banking. The Corporation is a financial holding company, headquartered in Detroit, Michigan, that operates through one commercial bank, Chemical Bank. Chemical Bank operates within Michigan, Ohio and Northern Indiana as a Michigan state-chartered commercial bank. Chemical Bank operates through an internal organizational structure of six regional banking units and offers a full range of traditional banking and fiduciary products and services to the residents and business customers in the Corporation's geographical market areas. The products and services offered by the regional banking units, through branch banking offices, are generally consistent throughout the Corporation, as is the pricing of those products and services. The marketing of products and services throughout the Corporation's regional banking units is generally uniform, as many of the markets served by the regional banking units overlap. The distribution of products and services is generally uniform throughout the Corporation's regional banking units and is achieved primarily through retail branch banking offices, automated teller machines and electronically accessed banking products. The Corporation's primary sources of revenue are interest from its loan products and investment securities, service charges and fees from customer deposit accounts, wealth management revenue and net gain on sale of loans and other mortgage banking revenue. Basis of Presentation and Principles of Consolidation The accompanying unaudited Consolidated Financial Statements of the Corporation and its subsidiaries have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") for interim financial information and with instructions to Form 10-Q, Securities and Exchange Commission ("SEC") rules and interpretive releases and prevailing practices within the banking industry and Rule 10-01 of Regulation S-X. Accordingly, the interim Consolidated Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation’s Consolidated Financial Statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2018 . In the opinion of management, the accompanying unaudited interim Consolidated Financial Statements contain all adjustments believed necessary to present fairly the financial condition and results of operations of the Corporation for the periods presented. All significant income and expenses are recorded on the accrual basis. Intercompany accounts and transactions have been eliminated in preparing the Consolidated Financial Statements. Operating results for the six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . Pending Merger with TCF Financial Corporation Chemical and TCF Financial Corporation ("TCF") have entered into an Agreement and Plan of Merger, dated as of January 27, 2019, which we refer to as the merger agreement. Under the merger agreement, Chemical and TCF have agreed to combine their respective companies in a merger of equals, pursuant to which TCF will merge with and into Chemical, with Chemical continuing as the surviving entity, in a transaction we refer to as the merger. Immediately following the merger or at such later time as the parties may mutually agree, Chemical Bank will merge with and into TCF National Bank, with TCF National Bank as the surviving bank, in a transaction we refer to as the bank merger. The merger has received all necessary regulatory approvals in addition to approvals from the shareholders of both companies. The pending transaction is anticipated to close on August 1, 2019, subject to satisfaction of customary closing conditions. The transaction is discussed in more detail in Note 2 . Use of Estimates Management makes estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying footnotes. Estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses, expected cash flows from acquired loans, income taxes and the valuation of loan servicing rights. Actual results could differ from these estimates. Reclassifications Certain amounts appearing in the Consolidated Financial Statements and notes thereto for prior periods have been reclassified to conform to the current presentation. The reclassification had no effect on net income or shareholders’ equity as previously reported, except in case of the cumulative effect adjustment of change in accounting policy as noted. Recently Adopted Accounting Principles Standard Description Adoption Date Effect on the financial statements ASU No. 2014-09 - Revenue from Contracts with Customers (Topic 606) ASU No. 2016-08 - Principal versus Agent Considerations ASU No. 2016-10 - Identifying Performance Obligations and Licensing ASU No. 2016-12 - Narrow-scope Improvements and Practical Expedients ("Updates to Topic 606") The core principle of the Updates to Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is intended to clarify and converge the revenue recognition principles under GAAP and International Financial Reporting Standards and to streamline revenue recognition requirements in addition to expanding required revenue recognition disclosures. January 1, 2018 under the modified retrospective method A large majority of the Corporation's revenue is derived from net interest income, which is excluded from the scope of the guidance. Following detailed review of the Corporation's revenue streams not derived from net interest income on financial assets and liabilities, management identified the recognition of gains from other real estate sales financed by the Corporation to be in the scope of this amended guidance. Effective January 1, 2018, revenue for new seller financed other real estate owned sales is determined according to the Updates to Topic 606. If all qualifications are met, gains associated with the sales are recognized into income at the time of closing and therefore not deferred. The cumulative effect of the Updates to Topic 606 increased retained earnings by $1.2 million upon adoption. Additional required disclosures have been included in Note 15, Revenue from Contracts with Customers. The adoption is not expected to have a material impact on the Corporation's net income on an ongoing basis. Refer to Note 6, Other Real Estate Owned and Repossessed Assets, for further detail. ASU No. 2016-01 - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01") ASU 2016-01 amended current guidance by: (i) requiring equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income, (ii) allowing an entity to measure equity investments that do not have readily determinable fair values at either fair value or cost minus impairment, changes in measurement is recognized in net income, (iii) simplifying impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iv) eliminating the requirement to disclose the methods and assumptions used to estimate the fair value of financial instruments measured at amortized cost; (v) requiring the use of exit price notion when measuring the fair value of financial instruments; (vi) requiring recognition of changes in the fair value related to instrument-specific credit risk in other comprehensive income if financial liabilities are measured at fair value, (vii) requiring separate presentation in financial statements by measurement category, and (viii) clarifying that an entity should evaluate the need for valuation allowance on deferred tax assets related to available-for-sale securities in combination with the entity’s other deferred tax assets. January 1, 2018 using a modified retrospective approach with the exception of disclosure requirements which are adopted on a prospective basis The Corporation identified available-for-sale investment securities qualifying as equity investments in the securities portfolio at January 1, 2018. The adoption resulted in recognizing the unrealized fair value related to the identified equity investments as a cumulative effect to retained earnings of $0.3 million. In addition, the Corporation has updated disclosures related to the fair value of financial instruments to the use of the exit price notion. Standard Description Adoption Date Effect on the financial statements ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts as Cash Payments ("ASU 2016-15") ASU 2016-15 was issued to reduce diversity in practice and prevent financial statement restatements by clarifying the presentation and classification of cash receipts and cash payments within the statement of cash flows. Cash flow issues include: debt prepayment or debt extinguishment costs, settlement of insurance claims, proceeds from the settlement of corporate-owned and bank-owned life insurance policies, distribution received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. January 1, 2018 using retrospective application The adoption did not have a material effect on the presentation of our Consolidated Statements of Cash Flows, as current policies are either already in-line with the clarifications in the updated guidance, or the related cash flows are not material. ASU No. 2017-07 - Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost ("ASU 2017-07") ASU 2017-07 improves the income statement presentation of net periodic benefit cost for an entity's pension and postretirement plans. The standard requires employers to disaggregate current service costs from other components of net benefit cost and present it with other compensation cost. Additionally net benefit cost becomes eligible for capitalization. January 1, 2018 using the retrospective transition method The adoption did not have a material effect on the Consolidated Statements of Income during the year ended December 31, 2018. ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvement to Account for Hedging Activities ("ASU 2017-12") ASU 2017-12 eliminates the separate measurement of hedge ineffectiveness as well as the benchmark interest rate concept when applying hedge risk to variable-rate instruments. It also allows a company to elect to perform subsequent effectiveness assessments qualitatively if the initial quantitative hedge effectiveness assessment is found to be highly effective. January 1, 2018 with a cumulative effect adjustment The early adoption resulted in a cumulative adjustment from opening retained earnings to accumulated other comprehensive income of $3 thousand, which represented all previously recognized hedge ineffectiveness. ASU No. 2018-15 - Intangible-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15") ASU 2018-15 clarifies the accounting treatment for implementation costs for hosting arrangements that are service contracts. The amendments in this update 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 in accordance with subtopic 350-40. Under this guidance costs for implementation activities during the development stage shall be capitalized. The said capitalized-costs shall be expensed over the term of the hosting arrangement. Third quarter of 2018 applied retrospectively The early adoption in the third quarter of 2018 did not have a material effect on the Consolidated Financial Statements. Standard Description Adoption Date Effect on the financial statements ASU No. 2016-02 - Leases (Topic 842) ASU No. 2018-10 - Codification Improvements to Topic 842, Leases ASU No. 2018-11 - Leases (Topic 842): Targeted Improvements ASU No. 2018-20 - Leases (Topic 842): Narrow Scope Improvements for Lessors ASU No. 2019-01 - Leases (Topic 842): Codification Improvements In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU), No. 2016-02, which requires lessees to recognize leases on-balance sheet, lessors to classify leases as sales-type, direct financing, or operating, and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; ASU No. 2018-11, Targeted Improvements; ASU No. 2018-20, Narrow Scope Improvements for Lessors; and ASU No. 2019-01, Leases (Topic 842): Codification Improvements. This guidance provides that lessees will be required to recognize the following for all operating leases (with the exception of short-term leases): 1) a lease liability, which is the present value of a lessee's obligation to make lease payments, and 2) a right-of-use (ROU) asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. Upon adoption, a modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. January 1, 2019 Upon adoption as of January 1, 2019, the Corporation elected certain practical expedients offered through the guidance, including foregoing the restatement of comparative periods, the use of hindsight, and the 'package of practical expedients' whereby it did not reassess (i) whether any expired or existing contracts contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. Effective during the six months ended 2019 , the Corporation also adopted the following standards, none of which had a material impact to the Corporation's financial statements or financial statement disclosures: Standard Effective Date 2017-06 Plan Accounting: Defined Benefit Pension Plans (Topic 960) January 1, 2019 2018-07 Compensation - Stock Compensation (Topic 718) January 1, 2019 2018-08 Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made January 1, 2019 2018-09 Codification Improvements January 1, 2019 2018-16 Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes January 1, 2019 |
Mergers and Acquisitions
Mergers and Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Mergers and Acquisitions | Mergers and Acquisitions Pending Merger with TCF Financial Corporation On January 27, 2019 , Chemical entered into the merger agreement with TCF under which the companies will combine in an all-stock merger of equals transaction. Under the terms of the merger agreement, which was unanimously approved by the boards of directors of both companies, TCF will merge with and into Chemical. Immediately following the merger, Chemical Bank will merge with and into TCF National Bank, with TCF National Bank as the surviving bank. The combined holding company and bank will operate under the TCF name and brand following the closing of the transaction. TCF is headquartered in Wayzata, Minnesota with reported assets of approximately $24.4 billion as of March 31, 2019 . On June 7, 2019, Chemical and TCF received shareholder approval and subsequently received all necessary regulatory approvals to complete the merger. Under the terms of the merger agreement, TCF shareholders will receive 0.5081 shares of Chemical common stock for each share of TCF common stock based on a fixed exchange ratio, equivalent to $21.58 per TCF share based on the closing price as of January 25, 2019. Each outstanding share of 5.70% Series C Non-Cumulative Perpetual Preferred Stock of TCF will be converted into the right to receive one share of a newly created series of preferred stock of Chemical. Once the merger is completed, Chemical will be renamed and operate as TCF Financial Corporation and will trade on NASDAQ under the ticker symbol "TCF". The merger is expected to close on August 1, 2019, subject to satisfaction of customary closing conditions. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value, as defined by GAAP, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for market activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. The Corporation utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Investment securities — carried at fair value, loans held-for-sale, loan servicing rights ("LSRs") and derivatives are recorded at fair value on a recurring basis. Additionally, the Corporation may be required to record other assets, such as impaired loans, goodwill, other intangible assets, other real estate and repossessed assets, at fair value on a nonrecurring basis. These nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write-downs of individual assets. The Corporation determines the fair value of its financial instruments based on a three-level hierarchy established by GAAP. The classification and disclosure of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect management's estimates about market data. The three levels of inputs that may be used to measure fair value within the GAAP hierarchy are as follows: Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 valuations for the Corporation include government and government-sponsored enterprise debt obligations, including securities issued by the Federal Home Loan Bank ("FHLB"), Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Federal Farm Credit Bank, Student Loan Marketing Corporation and the Small Business Administration, securities issued by certain state and political subdivisions, residential mortgage-backed securities, collateralized mortgage obligations, corporate bonds and available-for-sale trust preferred securities. Valuations are obtained from a third-party pricing service for these investment securities. Additionally included in Level 2 valuations are loans held for sale and derivative assets and liabilities. Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models, yield curves and similar techniques. The determination of fair value requires management judgment or estimation and generally is corroborated by external data, which includes third-party pricing services. Level 3 valuations for the Corporation include impaired loans, goodwill, core deposit intangible assets, LSRs and other real estate and repossessed assets. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Corporation's financial assets and financial liabilities carried at fair value and all financial instruments disclosed at fair value. Transfers of assets or liabilities between levels of the fair value hierarchy are recognized at the beginning of the reporting period, when applicable. In general, fair value is based upon quoted market prices, where available. If quoted market prices are not available, fair value is based upon third-party pricing services when available. Fair value may also be based on internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be required to record financial instruments at fair value. Any such valuation adjustments are applied consistently over time. The Corporation's valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Corporation's valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the fair value amounts may change significantly after the date of the statement of financial position from the amounts reported in the Consolidated Financial Statements and related notes. Assets and Liabilities Recorded at Fair Value on a Recurring Basis Investment securities: Investment securities are recorded at fair value on a recurring basis with the exception of those classified as held-to-maturity. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are generally measured using independent pricing models or other model-based valuation techniques that include market inputs, such as benchmark yields, reported trades, broker dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data and industry and economic events. Loans held-for-sale: The Corporation elected the fair value option for all loans held-for-sale. Accordingly, loans held-for-sale are recorded at fair value on a recurring basis. The fair values of loans held-for-sale are based on the market price for similar loans sold in the secondary market, and therefore, are classified as Level 2 valuations. Loan servicing rights: The Corporation has elected to account for all LSRs under the fair value measurement method. A third party valuation model is used to determine the fair value at the end of each reporting period utilizing a discounted cash flow analysis using interest rates and prepayment speed assumptions currently quoted for comparable instruments and a discount rate determined by management. Because of the nature of the valuation inputs, the Corporation classifies loan servicing rights as Level 3. Refer to Note 8 , Loan Servicing Rights, for the assumptions included in the valuation of loan servicing rights. Derivatives: The Corporation enters into interest rate lock commitments with prospective borrowers to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors, which are carried at fair value on a recurring basis. The fair value of these commitments is based on the fair value of related mortgage loans determined using observable market data. Interest rate lock commitments are adjusted for expectations of exercise and funding. This adjustment is not considered to be a material input. The Corporation classifies interest rate lock commitments and forward contracts related to mortgage loans to be delivered for sale as recurring Level 2. Derivative instruments held or issued for risk management or customer-initiated activities are traded in over-the counter markets where quoted market prices are not readily available. Fair value for over-the-counter derivative instruments is measured on a recurring basis using third party models that use primarily market observable inputs, such as yield curves and option volatilities. The fair value for these derivatives may include a credit valuation adjustment that is determined by applying a credit spread for the counterparty or the Corporation, as appropriate, to the total expected exposure of the derivative after considering collateral and other master netting arrangements. These adjustments, which are considered Level 3 inputs, are based on estimates of current credit spreads to evaluate the likelihood of default. The Corporation assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions at both June 30, 2019 and December 31, 2018 and it was determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. As a result, the Corporation classifies its risk management interest rate swaps designated as cash flow hedges and customer-initiated derivatives valuations in Level 2 of the fair value hierarchy. Written and purchased option derivatives consist of instruments to facilitate an equity-linked time deposit product (the "Power Equity CD"). The Power Equity CD is a time deposit that provides the purchaser a guaranteed return of principal at maturity plus a potential equity return, while the Corporation receives a known stream of funds based on equity returns. The written and purchased options are mirror derivative instruments which are carried at fair value on the Consolidated Statements of Financial Position. Fair value measurements for the Power Equity CD are determined using quoted prices of underlying stocks, along with other terms and features of the derivative instrument. As a result, the Power Equity CD derivatives are classified as Level 2 valuations. Disclosure of Recurring Basis Fair Value Measurements For assets and liabilities measured at fair value on a recurring basis, quantitative disclosures about the fair value measurements for each major category of assets and liabilities follow: (Dollars in thousands) Quoted Prices In Active Markets for Identical Assets Significant Other Significant Total June 30, 2019 Investment securities – carried at fair value: Government and government-sponsored enterprises $ — $ 295,726 $ — $ 295,726 State and political subdivisions — 444,085 — 444,085 Residential mortgage-backed securities — 353,622 — 353,622 Collateralized mortgage obligations — 1,939,695 — 1,939,695 Corporate bonds — 289,312 — 289,312 Trust preferred securities — 47,432 — 47,432 Total investment securities – carried at fair value — 3,369,872 — 3,369,872 Loans held-for-sale — 33,019 — 33,019 Loan servicing rights — — 60,658 60,658 Derivative assets: Customer-initiated derivatives — 69,024 — 69,024 Interest rate lock commitments — 2,687 — 2,687 Power Equity CD — 751 — 751 Risk management derivatives — 606 — 606 Total derivatives — 73,068 — 73,068 Total assets at fair value $ — $ 3,475,959 $ 60,658 $ 3,536,617 Derivative liabilities: Customer-initiated derivatives — 70,707 — 70,707 Forward contracts related to mortgage loans to be delivered for sale — 661 — 661 Power Equity CD — 751 — 751 Risk management derivatives — 25,060 — 25,060 Total derivatives — 97,179 — 97,179 Total liabilities at fair value $ — $ 97,179 $ — $ 97,179 (Dollars in thousands) Quoted Prices In Active Markets for Identical Assets Significant Other Significant Total December 31, 2018 Investment securities – carried at fair value: Government and government-sponsored enterprises $ — $ 351,700 $ — $ 351,700 State and political subdivisions — 516,286 — 516,286 Residential mortgage-backed securities — 213,428 — 213,428 Collateralized mortgage obligations — 1,601,298 — 1,601,298 Corporate bonds — 293,063 — 293,063 Trust preferred securities — 46,057 — 46,057 Total investment securities – carried at fair value — 3,021,832 — 3,021,832 Loans held-for-sale — 85,030 — 85,030 Loan servicing rights — — 71,013 71,013 Derivative assets: Customer-initiated derivatives — 26,680 — 26,680 Interest rate lock commitments — 1,049 — 1,049 Power Equity CD — 718 — 718 Risk management derivatives — 10,148 — 10,148 Total derivatives — 38,595 — 38,595 Total assets at fair value $ — $ 3,145,457 $ 71,013 $ 3,216,470 Derivative liabilities: Customer-initiated derivatives $ — $ 27,664 $ — $ 27,664 Forward contracts related to mortgage loans to be delivered for sale — 719 — 719 Power Equity CD — 718 — 718 Risk management derivatives — 3,278 — 3,278 Total derivatives — 32,379 — 32,379 Total liabilities at fair value $ — $ 32,379 $ — $ 32,379 There were no transfers between levels within the fair value hierarchy during the six months ended June 30, 2019 and 2018 . The following table summarizes the changes in Level 3 assets measured at fair value on a recurring basis. Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Dollars in thousands) Loan servicing rights Balance, beginning of period $ 64,701 $ 68,837 $ 71,013 $ 63,841 Gains (losses): Recorded in earnings (realized): Recorded in "Net gain on sale of loans and other mortgage banking revenue" (6,152 ) (757 ) (14,597 ) 2,272 New originations 2,109 2,284 4,242 4,251 Balance, end of period $ 60,658 $ 70,364 $ 60,658 $ 70,364 The Corporation has elected the fair value option for loans held-for-sale. These loans are intended for sale and the Corporation believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loans in accordance with the Corporation's policy on loans held for investment in "Interest and fees on loans" in the Consolidated Statements of Income. There were no loans held-for-sale on nonaccrual status or 90 days past due and on accrual status as of June 30, 2019 and December 31, 2018 . The aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held-for-sale carried at fair value option was as follows: (Dollars in thousands) June 30, December 31, Aggregate fair value $ 33,019 $ 85,030 Contractual balance 31,799 82,080 Unrealized gain 1,220 2,950 The total amount of gains from loans held-for-sale included in the Consolidated Statements of Income was as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Interest income (1) $ 336 $ 445 $ 969 $ 821 Change in fair value (2) 345 484 (1,730 ) (216 ) Net gain on sales of loans (2) 5,388 4,023 11,538 5,531 Total included in earnings $ 6,069 $ 4,952 $ 10,777 $ 6,136 (1) Included in "Interest and fees on loans" in the Consolidated Statements of Income. (2) Included in "Net gain on sale of loans and other mortgage banking revenue" in the Consolidated Statements of Income. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis Investment securities: Investment securities classified as held-to-maturity are recorded at fair value if the value is below amortized cost and the Corporation has determined that such unrealized loss is an other-than-temporary impairment. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are generally measured using independent pricing models or other model-based valuation techniques that include market inputs, such as benchmark yields, reported trades, broker dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data and industry and economic events. Impaired Loans: The Corporation does not record loans held for investment at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allocation of the allowance (valuation allowance) may be established or a portion of the loan is charged off. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. The fair value of impaired loans is estimated using one of several methods, including the loan's observable market price, the fair value of the collateral or the present value of the expected future cash flows discounted at the loan's effective interest rate. Those impaired loans not requiring a valuation allowance represent loans for which the fair value of the expected repayments or collateral exceed the remaining carrying amount of such loans. Impaired loans where a valuation allowance is established or a portion of the loan is charged off based on the fair value of collateral are subject to nonrecurring fair value measurement and require classification in the fair value hierarchy. The Corporation records impaired loans as Level 3 valuations as there is generally no observable market price or management determines the fair value of the collateral is further impaired below the independent appraised value. When management determines the fair value of the collateral is further impaired below the appraised value, discounts ranging between 20% and 30% of the appraised value are used depending on the nature of the collateral and the age of the most recent appraisal. Goodwill: Goodwill is subject to impairment testing on an annual basis. The assessment of goodwill for impairment requires a significant degree of judgment. In the event the assessment indicates that it is more-likely-than-not that the fair value is less than the carrying value, the asset is considered impaired and recorded at fair value. Goodwill that is impaired and subject to nonrecurring fair value measurements is a Level 3 valuation. At June 30, 2019 and December 31, 2018 , no goodwill was impaired. Core deposit intangibles : Core deposit intangible assets are recorded at fair value when initially recorded. Subsequently, core deposit intangible assets are amortized primarily on an accelerated basis over periods ranging from ten to fifteen years and are subject to impairment testing whenever events or changes in circumstances indicate that the carrying amount exceeds the fair value of the asset. If core deposit intangible asset impairment is identified, the Corporation classifies the impaired core deposit intangible asset subject to nonrecurring fair value measurements as Level 3 valuations. At June 30, 2019 and December 31, 2018 , there was no impairment identified for core deposit intangible assets. Other real estate owned and repossessed assets : The carrying amounts for other real estate and repossessed assets are reported in the Consolidated Statements of Financial Position under "Interest receivable and other assets." Other real estate and repossessed assets include real estate and other types of assets repossessed by the Corporation. Other real estate and repossessed assets are recorded at the lower of cost or fair value upon the transfer of a loan to other real estate and repossessed assets and, subsequently, continue to be measured and carried at the lower of cost or fair value. Fair value is based upon independent market prices, appraised values of the property or management's estimation of the value of the property. The Corporation records other real estate and repossessed assets as Level 3 valuations as management generally determines that the fair value of the property is impaired below the appraised value. When management determines the fair value of the property is further impaired below appraised value, discounts ranging between 20% and 30% of the appraised value are used depending on the nature of the property and the age of the most recent appraisal. Disclosure of Nonrecurring Basis Fair Value Measurements Certain assets may be required to be measured at fair value on a nonrecurring basis. The carrying value of these assets represent end of period values, which approximate the fair value measurements that occurred on the various measurement dates during the period. For assets measured at fair value on a nonrecurring basis, quantitative disclosures about fair value measurements for each major category of assets follow: (Dollars in thousands) Significant Unobservable Inputs (Level 3) June 30, 2019 Impaired loans $ 76,186 Other real estate and repossessed assets 3,463 Total $ 79,649 December 31, 2018 Impaired loans $ 63,247 Other real estate and repossessed assets 883 Total $ 64,130 There were no liabilities recorded at fair value on a nonrecurring basis at either June 30, 2019 or December 31, 2018 . The following table presents additional information about the significant unobservable inputs used in the fair value measurement of financial assets measured on a nonrecurring basis that were categorized within the Level 3 of the fair value hierarchy: (Dollars in thousands) Fair Value at Valuation Technique Significant Unobservable Inputs Range Impaired loans $ 76,186 Appraisal of collateral Discount for type of collateral and age of appraisal 20%-30% Other real estate and repossessed assets 3,463 Appraisal of property Discount for type of property and age of appraisal 20%-30% Disclosures About Fair Value of Financial Instruments GAAP requires disclosures about the estimated fair value of the Corporation's financial instruments, including those financial assets and liabilities that are not measured and reported at fair value on a recurring or nonrecurring basis. The Corporation utilized the fair value hierarchy in computing the fair values of its financial instruments. In cases where quoted market prices were not available, the Corporation employed the exit-price notion, using unobservable inputs requiring management's judgment to estimate the fair values of its financial instruments, which is considered a Level 3 valuation. This Level 3 valuation is affected by the assumptions made and, accordingly, is not necessarily indicative of amounts that would be realized in a current market exchange. It is also the Corporation's general practice and intent to hold the majority of its financial instruments until maturity and, therefore, the Corporation does not expect to realize the estimated amounts disclosed. A summary of carrying amounts and estimated fair values of the Corporation's financial instruments not recorded at fair value in their entirety on a recurring basis on the Consolidated Statements of Financial Position are disclosed in the table below. Level in Fair Value Measurement Hierarchy June 30, 2019 December 31, 2018 (Dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Investment securities: Held-to-maturity Level 2 $ 565,546 $ 575,042 $ 623,599 $ 618,232 Held-to-maturity Level 3 500 460 500 440 Net loans (1) Level 3 15,745,936 15,717,256 15,159,795 14,907,789 Financial liabilities: Time deposits Level 2 $ 4,360,014 $ 4,354,554 $ 4,074,248 $ 4,041,212 Collateralized customer deposits Level 2 291,671 291,513 382,687 382,370 Short-term borrowings Level 2 2,615,000 2,614,777 2,035,000 2,034,719 Long-term borrowings Level 2 426,069 431,043 426,002 423,258 (1) Included $76.2 million and $63.2 million of impaired loans recorded at fair value on a nonrecurring basis at June 30, 2019 and December 31, 2018 , respectively. The short-term nature of certain assets and liabilities result in their carrying value approximating fair value. These include cash and cash equivalents, nonmarketable equity securities, interest receivable, bank owned life insurance, deposits without defined maturities and interest payable. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The following is a summary of the amortized cost and fair value of investment securities carried at fair value and investment securities held-to-maturity at June 30, 2019 and December 31, 2018 : Investment Securities Carried at Fair Value (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value June 30, 2019 Debt securities Government and government-sponsored enterprises $ 297,284 $ 378 $ 1,936 $ 295,726 State and political subdivisions 428,365 15,845 125 444,085 Residential mortgage-backed securities 351,790 2,807 975 353,622 Collateralized mortgage obligations 1,930,699 14,869 5,873 1,939,695 Corporate bonds 291,869 1,337 3,894 289,312 Trust preferred securities 47,672 502 742 47,432 Total $ 3,347,679 $ 35,738 $ 13,545 $ 3,369,872 December 31, 2018 Debt securities Government and government-sponsored enterprises $ 354,342 $ 713 $ 3,355 $ 351,700 State and political subdivisions 523,178 1,141 8,033 516,286 Residential mortgage-backed securities 216,990 261 3,823 213,428 Collateralized mortgage obligations 1,623,415 2,903 25,020 1,601,298 Corporate bonds 304,243 259 11,439 293,063 Trust preferred securities 47,477 324 1,744 46,057 Total $ 3,069,645 $ 5,601 $ 53,414 $ 3,021,832 Investment Securities Held-to-Maturity (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value June 30, 2019 State and political subdivisions $ 565,546 $ 10,576 $ 1,080 $ 575,042 Trust preferred securities 500 — 40 460 Total $ 566,046 $ 10,576 $ 1,120 $ 575,502 December 31, 2018 State and political subdivisions $ 623,599 $ 2,548 $ 7,915 $ 618,232 Trust preferred securities 500 — 60 440 Total $ 624,099 $ 2,548 $ 7,975 $ 618,672 Investment securities are classified at the time they are acquired as either available-for-sale, held-to-maturity or carried at fair value based upon various factors, including asset/liability management strategies, liquidity and profitability objectives and regulatory requirements. Debt securities classified as available-for-sale are recorded at fair value. Investment securities carried at fair value may be sold prior to maturity based upon asset/liability management decisions. Unrealized gains or losses on available-for-sale debt securities are recorded as part of accumulated other comprehensive income in stockholders' equity. Held-to-maturity securities are carried at amortized cost, adjusted for amortization of premiums or accretion of discounts. The majority of the Corporation's residential mortgage-backed securities and collateralized mortgage obligations are backed by a U.S. government agency (Government National Mortgage Association) or a government sponsored enterprise (Federal Home Loan Mortgage Corporation or Federal National Mortgage Association). Proceeds from sales of investment securities carried at fair value and the associated gains and losses recorded in earnings are listed below: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Proceeds $ 133,829 $ 4,215 $ 205,331 $ 4,215 Gross gains 4,180 42 4,732 42 Gross losses (20 ) (39 ) (485 ) (39 ) The following is a summary of the amortized cost and fair value of investment securities at June 30, 2019 , by maturity, for both carried at fair value and held-to-maturity. The maturities of residential mortgage-backed securities and collateralized mortgage obligations are based on scheduled principal payments. The maturities of all other debt securities are based on final contractual maturity. June 30, 2019 (Dollars in thousands) Amortized Cost Fair Value Investment Securities Carried at Fair Value: Due in one year or less $ 779,977 $ 784,061 Due after one year through five years 1,292,316 1,297,464 Due after five years through ten years 812,375 809,765 Due after ten years 463,011 478,582 Total $ 3,347,679 $ 3,369,872 Investment Securities Held-to-Maturity: Due in one year or less $ 55,592 $ 55,657 Due after one year through five years 207,221 209,710 Due after five years through ten years 138,384 142,283 Due after ten years 164,849 167,852 Total $ 566,046 $ 575,502 Securities carried at fair value of $897.0 million and $1.05 billion were pledged at June 30, 2019 and December 31, 2018 , respectively, to secure borrowings and deposits. At June 30, 2019 and December 31, 2018 , there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders' equity. The following schedule summarizes information for debt securities both carried at fair value and held-to-maturity with gross unrealized losses at June 30, 2019 and December 31, 2018 , aggregated by category and length of time that individual securities have been in a continuous unrealized loss position. As of June 30, 2019 , the Corporation's securities portfolio consisted of 1,912 securities, 512 of which were in an unrealized loss position. Less Than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2019 Government and government-sponsored enterprises $ 38,077 $ 74 $ 171,701 $ 1,862 $ 209,778 $ 1,936 State and political subdivisions 10,105 15 242,873 1,190 252,978 1,205 Residential mortgage-backed securities 14,778 17 102,387 958 117,165 975 Collateralized mortgage obligations 229,853 1,684 464,641 4,189 694,494 5,873 Corporate bonds 52,131 269 113,659 3,625 165,790 3,894 Trust preferred securities 24,902 600 2,712 182 27,614 782 Total $ 369,846 $ 2,659 $ 1,097,973 $ 12,006 $ 1,467,819 $ 14,665 December 31, 2018 Government and government-sponsored enterprises $ 167,164 $ 1,672 $ 62,200 $ 1,683 $ 229,364 $ 3,355 State and political subdivisions 190,551 1,932 657,327 14,016 847,878 15,948 Residential mortgage-backed securities 20,679 85 123,757 3,738 144,436 3,823 Collateralized mortgage obligations 496,356 5,268 656,208 19,752 1,152,564 25,020 Corporate bonds 169,431 5,888 103,688 5,551 273,119 11,439 Trust preferred securities 34,623 1,640 2,725 164 37,348 1,804 Total $ 1,078,804 $ 16,485 $ 1,605,905 $ 44,904 $ 2,684,709 $ 61,389 An assessment is performed quarterly by the Corporation to determine whether unrealized losses in its debt securities portfolio are temporary or other-than-temporary by carefully considering all reasonably available information. The Corporation reviews factors such as financial statements, credit ratings, news releases and other pertinent information of the underlying issuer or company to make its determination. Management did not believe any individual unrealized loss on any debt security, as of June 30, 2019 , represented an other-than-temporary impairment ("OTTI") as the unrealized losses for these securities resulted primarily from changes in benchmark U.S. Treasury interest rates and not credit issues. Management believed that the unrealized losses on debt securities at June 30, 2019 were temporary in nature and due primarily to changes in interest rates and reduced market liquidity and not as a result of credit-related issues. At June 30, 2019 , the Corporation did not have the intent to sell any of its impaired debt securities and believed that it was more-likely-than-not that the Corporation will not have to sell any such debt securities before a full recovery of amortized cost. Accordingly, at June 30, 2019 , the Corporation believed the impairments in its debt securities portfolio were temporary in nature. However, there is no assurance that OTTI may not occur in the future. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans | Loans Loan portfolio segments are defined as the level at which an entity develops and documents a systematic methodology to determine its allowance. The Corporation has two loan portfolio segments (commercial loans and consumer loans) that it uses in determining the allowance. Both quantitative and qualitative factors are used by management at the loan portfolio segment level in determining the adequacy of the allowance for the Corporation. Classes of loans are a disaggregation of an entity's loan portfolio segments. Classes of loans are defined as a group of loans which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. The Corporation has six classes of loans, which are set forth below. Commercial — Loans and lines of credit to varying types of businesses, including municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital, operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the business. Commercial loans are predominately secured by equipment, inventory, accounts receivable, personal guarantees of the owner and other sources of repayment, although the Corporation may also secure commercial loans with real estate. Commercial real estate — Loans secured by real estate occupied by the borrower for ongoing operations (owner-occupied), non-owner occupied real estate leased to one or more tenants (non-owner occupied) and vacant land that has been acquired for investment or future land development (vacant land). Real estate construction and land development — Real estate construction loans represent secured loans for the construction of business properties. Real estate construction loans often convert to a commercial real estate loan at the completion of the construction period. Land development loans represent secured development loans made to borrowers for the purpose of infrastructure improvements to vacant land to create finished marketable residential and commercial lots/land. Most land development loans are originated with the intention that the loans will be paid through the sale of developed lots/land by the developers within twelve months of the completion date. Land development loans at June 30, 2019 and December 31, 2018 were primarily comprised of loans to develop residential properties. Residential mortgage — Loans secured by one - to four -family residential properties, generally with fixed interest rates for periods of fifteen years or less. The loan-to-value ratio at the time of origination is generally 80% or less. Residential mortgage loans with a loan-to-value ratio of more than 80% generally require private mortgage insurance. Consumer installment — Loans to consumers primarily for the purpose of acquiring automobiles, recreational vehicles and watercraft and comprised primarily of indirect loans purchased from dealers. These loans generally consist of relatively small amounts that are spread across many individual borrowers. Home equity — Loans and lines of credit whereby consumers utilize equity in their personal residence, generally through a second mortgage, as collateral to secure the loan. Loans held-for-sale, comprised of fixed-rate residential mortgage and construction loans, were $33.0 million at June 30, 2019 and $85.0 million at December 31, 2018 . The Corporation sold loans totaling $196.9 million and $392.7 million during the three and six months ended June 30, 2019 , respectively, and $202.1 million and $392.6 million during the three and six months ended June 30, 2018 , respectively. Commercial, commercial real estate, and real estate construction and land development loans are referred to as the Corporation's commercial loan portfolio, while residential mortgage, consumer installment and home equity loans are referred to as the Corporation's consumer loan portfolio. A summary of the Corporation's loans follows: (Dollars in thousands) Originated Acquired (1) Total Loans June 30, 2019 Commercial loan portfolio: Commercial $ 3,752,528 $ 595,357 $ 4,347,885 Commercial real estate: Owner-occupied 1,528,802 495,759 2,024,561 Non-owner occupied 2,056,531 716,146 2,772,677 Vacant land 37,155 12,807 49,962 Total commercial real estate 3,622,488 1,224,712 4,847,200 Real estate construction and land development 671,773 28,997 700,770 Subtotal 8,046,789 1,849,066 9,895,855 Consumer loan portfolio: Residential mortgage 2,722,019 944,594 3,666,613 Consumer installment 1,497,467 55,368 1,552,835 Home equity 604,835 141,765 746,600 Subtotal 4,824,321 1,141,727 5,966,048 Total loans (2) $ 12,871,110 $ 2,990,793 $ 15,861,903 December 31, 2018 Commercial loan portfolio: Commercial $ 3,287,087 $ 715,481 $ 4,002,568 Commercial real estate: Owner-occupied 1,513,532 546,025 2,059,557 Non-owner occupied 1,966,330 818,690 2,785,020 Vacant land 40,295 27,215 67,510 Total commercial real estate 3,520,157 1,391,930 4,912,087 Real estate construction and land development 566,726 30,486 597,212 Subtotal 7,373,970 2,137,897 9,511,867 Consumer loan portfolio: Residential mortgage 2,407,305 1,051,361 3,458,666 Consumer installment 1,451,352 69,722 1,521,074 Home equity 612,129 166,043 778,172 Subtotal 4,470,786 1,287,126 5,757,912 Total loans (2) $ 11,844,756 $ 3,425,023 $ 15,269,779 (1) Loans acquired in the Talmer, Lake Michigan, Monarch, Northwestern and OAK acquisitions were elected to be accounted for under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30), by analogy. (2) Reported net of deferred costs totaling $27.2 million and $19.7 million at June 30, 2019 and December 31, 2018 , respectively. The Corporation acquired loans at fair value as of the acquisition date, which includes loans acquired in the acquisitions of Talmer Bancorp, Inc. ("Talmer"), Lake Michigan Financial Corporation ("Lake Michigan"), Monarch Community Bancorp, Inc. ("Monarch"), Northwestern Bancorp, Inc. ("Northwestern") and O.A.K. Financial Corporation ("OAK"). Loans acquired in each of these transactions ("Acquired Loans") were elected to be accounted for under ASC 310-30, by analogy, which recognizes the expected shortfall of expected future cash flows, as compared to the contractual amount due, as nonaccretable difference. Any excess of the net present value of expected future cash flows over the acquisition date fair value is recognized as the accretable discount, or accretable yield. The accretable yield is recognized over the expected remaining life of the acquired loans on a pool basis. In the event an acquired loan is renewed or extended, the loan continues to be accounted for as an acquired loan on a pool basis in accordance with ASC 310-30. Activity for the accretable yield, which includes contractually due expected cash flows for acquired loans that have been renewed or extended since the date of acquisition and continue to be accounted for in loan pools in accordance with ASC 310-30, follows: (Dollars in thousands) Talmer Lake Michigan Monarch North-western OAK Total Three Months Ended June 30, 2019 Balance at beginning of period $ 469,713 $ 68,995 $ 16,967 $ 38,644 $ 8,345 $ 602,664 Accretion recognized in interest income (36,730 ) (5,291 ) (852 ) (3,214 ) (1,334 ) (47,421 ) Net reclassification (to) from nonaccretable difference (1) 730 409 750 745 913 3,547 Balance at end of period $ 433,713 $ 64,113 $ 16,865 $ 36,175 $ 7,924 $ 558,790 Three Months Ended June 30, 2018 Balance at beginning of period $ 685,830 $ 90,156 $ 21,154 $ 55,400 $ 16,158 $ 868,698 Accretion recognized in interest income (42,136 ) (6,302 ) (962 ) (4,618 ) (2,882 ) (56,900 ) Net reclassification (to) from nonaccretable difference (1) (27,526 ) (3,412 ) (61 ) (1,051 ) 1,016 (31,034 ) Balance at end of period $ 616,168 $ 80,442 $ 20,131 $ 49,731 $ 14,292 $ 780,764 Six Months Ended June 30, 2019 Balance at beginning of period $ 505,332 $ 73,132 $ 17,832 $ 41,455 $ 9,574 $ 647,325 Accretion recognized in interest income (74,761 ) (10,842 ) (1,626 ) (6,634 ) (2,703 ) (96,566 ) Net reclassification (to) from nonaccretable difference (1) 3,142 1,823 659 1,354 1,053 8,031 Balance at end of period $ 433,713 $ 64,113 $ 16,865 $ 36,175 $ 7,924 $ 558,790 Six Months Ended June 30, 2018 Balance at beginning of period $ 731,353 $ 95,124 $ 22,496 $ 60,814 $ 17,110 $ 926,897 Accretion recognized in interest income (84,776 ) (13,060 ) (2,118 ) (9,522 ) (5,985 ) (115,461 ) Net reclassification (to) from nonaccretable difference (1) (30,409 ) (1,622 ) (247 ) (1,561 ) 3,167 (30,672 ) Balance at end of period $ 616,168 $ 80,442 $ 20,131 $ 49,731 $ 14,292 $ 780,764 (1) The net reclassification results from changes in expected cash flows of the acquired loans which may include increases in the amount of contractual principal and interest expected to be collected due to improvement in credit quality, increases in balances outstanding from advances, renewals, extensions and interest rates; as well as reductions in contractual principal and interest expected to be collected due to credit deterioration, payoffs, and decreases in interest rates. Credit Quality Monitoring The Corporation maintains loan policies and credit underwriting standards as part of the process of managing credit risk. These standards include making loans generally only within the Corporation's market areas. The Corporation's lending markets generally consist of communities throughout Michigan, Ohio and Northern Indiana. The Corporation, through Chemical Bank, has a commercial loan portfolio approval process involving underwriting and individual and group loan approval authorities to consider credit quality and loss exposure at loan origination. The loans in the Corporation's commercial loan portfolio are risk rated at origination based on the grading system set forth below. The approval authority of relationship managers is established based on experience levels, with credit decisions greater than $1.25 million requiring credit officer approval and credit decisions greater than $3.0 million requiring group loan authority approval, except for six executive and senior officers who have varying loan limits up to $8.0 million . With respect to the group loan authorities, Chemical Bank has various regional loan committees that meet weekly to consider loans ranging in amounts of $3.0 million to $7.0 million , and a senior loan committee, consisting of certain executive and senior officers, that meets weekly to consider loans ranging in amounts of $7.0 million up to Chemical Bank's internal lending limit, depending on risk rating and credit action required. Credit actions exceeding Chemical Bank's internal lending limit require the approval of the board of directors of Chemical Bank. The majority of the Corporation's consumer loan portfolio is comprised of secured loans that are relatively small. The Corporation's consumer loan portfolio has a centralized approval process which utilizes standardized underwriting criteria. The ongoing measurement of credit quality of the consumer loan portfolio is largely done on an exception basis. If payments are made on schedule, as agreed, then no further monitoring is performed. However, if delinquency occurs, the delinquent loans are turned over to the Corporation's collection department for resolution, resulting in repossession or foreclosure if payments are not brought current. Credit quality for the entire consumer loan portfolio is measured by the periodic delinquency rate, nonaccrual amounts and actual losses incurred. Loans in the commercial loan portfolio tend to be larger and more complex than those in the consumer loan portfolio, and therefore, are subject to more intensive monitoring. All loans in the commercial loan portfolio have an assigned relationship manager, and most borrowers provide periodic financial and operating information that allows the relationship managers to stay abreast of credit quality during the life of the loans. The risk ratings of loans in the commercial loan portfolio are reassessed at least annually, with loans below an acceptable risk rating reassessed more frequently and reviewed by various loan committees within the Corporation at least quarterly. The Corporation maintains a centralized independent loan review function that monitors the approval process and ongoing asset quality of the loan portfolio, including the accuracy of loan grades. The Corporation also maintains an independent appraisal review function that participates in the review of all appraisals obtained by the Corporation for loans in the commercial loan portfolio. Credit Quality Indicators Commercial Loan Portfolio Risk categories for the Corporation's commercial loan portfolio establish the credit quality of a borrower by measuring liquidity, debt capacity, coverage and payment behavior as shown in the borrower's financial statements. The risk categories also measure the quality of the borrower's management and the repayment support offered by any guarantors. Risk categories for the Corporation's commercial loan portfolio are described as follows: Pass: Includes all loans without weaknesses or potential weaknesses identified in the categories of special mention, substandard or doubtful. Special Mention: Loans with potential credit weakness or credit deficiency, which, if not corrected, pose an unwarranted financial risk that could weaken the loan by adversely impacting the future repayment ability of the borrower. Substandard: Loans with a well-defined weakness, or weaknesses, such as loans to borrowers who may be experiencing losses from operations or inadequate liquidity of a degree and duration that jeopardizes the orderly repayment of the loan. Substandard loans also are distinguished by the distinct possibility of loss in the future if these weaknesses are not corrected. Doubtful: Loans with all the characteristics of a loan classified as Substandard, with the added characteristic that credit weaknesses make collection in full highly questionable and improbable. The primary source of repayment is nonexistent and there is doubt as to the value of the secondary source of repayments. A doubtful asset has a high probability of total or substantial loss, but because of pending events that may strengthen the asset, its classification as loss is deferred. Loss: An asset classified as loss is considered uncollectible and of such little value that the continuance as a bankable asset is not warranted. This classification does not mean that an asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even through partial recovery may occur in the future. The following schedule presents the recorded investment of loans in the commercial loan portfolio by credit risk categories at June 30, 2019 and December 31, 2018 : (Dollars in thousands) Pass Special Mention Substandard Doubtful Total June 30, 2019 Originated Portfolio: Commercial $ 3,513,993 $ 123,194 $ 108,373 $ 6,968 $ 3,752,528 Commercial real estate: Owner-occupied 1,452,031 25,913 50,697 161 1,528,802 Non-owner occupied 2,023,577 5,516 27,433 5 2,056,531 Vacant land 35,546 96 1,513 — 37,155 Total commercial real estate 3,511,154 31,525 79,643 166 3,622,488 Real estate construction and land development 664,122 3,612 4,039 — 671,773 Subtotal 7,689,269 158,331 192,055 7,134 8,046,789 Acquired Portfolio: Commercial 505,823 62,253 25,512 1,769 595,357 Commercial real estate: Owner-occupied 462,266 18,226 14,835 432 495,759 Non-owner occupied 655,602 43,147 17,382 15 716,146 Vacant land 12,614 193 — — 12,807 Total commercial real estate 1,130,482 61,566 32,217 447 1,224,712 Real estate construction and land development 28,715 42 240 — 28,997 Subtotal 1,665,020 123,861 57,969 2,216 1,849,066 Total $ 9,354,289 $ 282,192 $ 250,024 $ 9,350 $ 9,895,855 December 31, 2018 Originated Portfolio: Commercial $ 3,118,894 $ 87,222 $ 77,036 $ 3,935 $ 3,287,087 Commercial real estate: Owner-occupied 1,430,948 32,056 50,286 242 1,513,532 Non-owner occupied 1,901,822 39,416 25,092 — 1,966,330 Vacant land 36,499 — 3,741 55 40,295 Total commercial real estate 3,369,269 71,472 79,119 297 3,520,157 Real estate construction and land development 557,040 6,108 3,578 — 566,726 Subtotal 7,045,203 164,802 159,733 4,232 7,373,970 Acquired Portfolio: Commercial 655,883 36,809 22,773 16 715,481 Commercial real estate: Owner-occupied 500,072 28,909 17,033 11 546,025 Non-owner occupied 740,900 52,546 25,244 — 818,690 Vacant land 26,978 237 — — 27,215 Total commercial real estate 1,267,950 81,692 42,277 11 1,391,930 Real estate construction and land development 29,248 97 1,141 — 30,486 Subtotal 1,953,081 118,598 66,191 27 2,137,897 Total $ 8,998,284 $ 283,400 $ 225,924 $ 4,259 $ 9,511,867 Consumer Loan Portfolio The Corporation evaluates the credit quality of loans in the consumer loan portfolio based on the performing or nonperforming status of the loan. Loans in the consumer loan portfolio that are performing in accordance with original contractual terms and are less than 90 days past due and accruing interest are considered to be in a performing status, while those that are in nonaccrual status, contractually past due 90 days or more as to interest or principal payments, are considered to be in a nonperforming status. Loans accounted for under ASC 310-30, "Acquired loans", that are not performing in accordance with contractual terms are not reported as nonperforming because these loans are recorded in pools at their net realizable value based on the principal and interest the Corporation expects to collect on these loans. The following schedule presents the recorded investment of loans in the consumer loan portfolio based on loans in a performing status and loans in a nonperforming status at June 30, 2019 and December 31, 2018 : (Dollars in thousands) Residential Mortgage Consumer Installment Home Equity Total Consumer June 30, 2019 Originated Loans: Performing $ 2,714,383 $ 1,496,056 $ 601,348 $ 4,811,787 Nonperforming 7,636 1,411 3,487 12,534 Subtotal 2,722,019 1,497,467 604,835 4,824,321 Acquired Loans 944,594 55,368 141,765 1,141,727 Total $ 3,666,613 $ 1,552,835 $ 746,600 $ 5,966,048 December 31, 2018 Originated Loans: Performing $ 2,399,317 $ 1,450,076 $ 608,525 $ 4,457,918 Nonperforming 7,988 1,276 3,604 12,868 Subtotal 2,407,305 1,451,352 612,129 4,470,786 Acquired Loans 1,051,361 69,722 166,043 1,287,126 Total $ 3,458,666 $ 1,521,074 $ 778,172 $ 5,757,912 Nonperforming Assets and Past Due Loans Nonperforming assets consist of loans for which the accrual of interest has been discontinued, other real estate owned acquired through acquisitions, other real estate owned obtained through foreclosure and other repossessed assets. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payments. Loans outside of those accounted for under ASC 310-30 are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful. The accrual of interest is discontinued when a loan is placed in nonaccrual status and any payments received reduce the carrying value of the loan. A loan may be placed back on accrual status if all contractual payments have been received and collection of future principal and interest payments are no longer doubtful. Acquired loans that are not performing in accordance with contractual terms are not reported as nonperforming because these loans are recorded in pools at their net realizable value based on the principal and interest the Corporation expects to collect on these loans. A summary of nonperforming assets follows: (Dollars in thousands) June 30, December 31, Nonperforming assets Nonaccrual loans: Commercial $ 37,762 $ 30,139 Commercial real estate: Owner-occupied 20,814 16,056 Non-owner occupied 21,639 23,021 Vacant land 1,446 3,337 Total commercial real estate 43,899 42,414 Real estate construction and land development 3,501 12 Residential mortgage 7,636 7,988 Consumer installment 1,411 1,276 Home equity 3,487 3,604 Total nonaccrual loans 97,696 85,433 Other real estate owned and repossessed assets 8,267 6,256 Total nonperforming assets $ 105,963 $ 91,689 The Corporation's nonaccrual loans at June 30, 2019 and December 31, 2018 included $29.9 million and $28.1 million , respectively, of nonaccrual TDRs. The Corporation had $3.6 million of residential mortgage loans that were in the process of foreclosure at June 30, 2019 , compared to $4.5 million at December 31, 2018 . Loan delinquency, excluding acquired loans accounted for under ASC 310-30, was as follows: Loans Past Due and Still Accruing (Dollars in thousands) 30-89 days past due 90 days or more past due Total past due Nonaccrual Loans Current Total loans June 30, 2019 Originated Portfolio: Commercial $ 19,158 $ 146 $ 19,304 $ 37,762 $ 3,695,462 $ 3,752,528 Commercial real estate: Owner-occupied 3,368 — 3,368 20,814 1,504,620 1,528,802 Non-owner occupied 1,714 — 1,714 21,639 2,033,178 2,056,531 Vacant land 501 — 501 1,446 35,208 37,155 Total commercial real estate 5,583 — 5,583 43,899 3,573,006 3,622,488 Real estate construction and land development 538 — 538 3,501 667,734 671,773 Residential mortgage 6,183 — 6,183 7,636 2,708,200 2,722,019 Consumer installment 3,076 — 3,076 1,411 1,492,980 1,497,467 Home equity 2,557 — 2,557 3,487 598,791 604,835 Total $ 37,095 $ 146 $ 37,241 $ 97,696 $ 12,736,173 $ 12,871,110 December 31, 2018 Originated Portfolio: Commercial $ 16,835 $ — $ 16,835 $ 30,139 $ 3,240,113 $ 3,287,087 Commercial real estate: Owner-occupied 4,657 52 4,709 16,056 1,492,767 1,513,532 Non-owner occupied 1,793 887 2,680 23,021 1,940,629 1,966,330 Vacant land 160 — 160 3,337 36,798 40,295 Total commercial real estate 6,610 939 7,549 42,414 3,470,194 3,520,157 Real estate construction and land development 247 — 247 12 566,467 566,726 Residential mortgage 1,688 — 1,688 7,988 2,397,629 2,407,305 Consumer installment 4,731 — 4,731 1,276 1,445,345 1,451,352 Home equity 3,843 488 4,331 3,604 604,194 612,129 Total $ 33,954 $ 1,427 $ 35,381 $ 85,433 $ 11,723,942 $ 11,844,756 Impaired Loans A loan is impaired when, based on current information and events, it is probable that the Corporation will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans include nonperforming loans and all TDRs. Impaired loans are accounted for at the lower of the present value of expected cash flows or the estimated fair value of the collateral. When the present value of expected cash flows or the fair value of the collateral of an impaired loan not accounted for under ASC 310-30 is less than the amount of unpaid principal outstanding on the loan, the recorded principal balance of the loan is reduced to its carrying value through either a specific allowance for loan loss or a partial charge-off of the loan balance. The following schedules present impaired loans by classes of loans at June 30, 2019 and December 31, 2018 : (Dollars in thousands) Recorded investment Unpaid principal balance Related valuation allowance June 30, 2019 Impaired loans with a valuation allowance: Commercial $ 28,732 $ 31,556 $ 5,805 Commercial real estate: Owner-occupied 20,050 22,193 2,168 Non-owner occupied 18,080 19,966 1,366 Vacant land 786 1,003 59 Total commercial real estate 38,916 43,162 3,593 Real estate construction and land development 3,612 3,612 365 Residential mortgage 10,060 10,060 790 Consumer installment 1,594 1,594 109 Home equity 4,290 4,290 356 Subtotal 87,204 94,274 11,018 Impaired loans with no related valuation allowance: Commercial 28,775 29,586 — Commercial real estate: Owner-occupied 12,057 12,895 — Non-owner occupied 7,827 8,339 — Vacant land 776 1,704 — Total commercial real estate 20,660 22,938 — Real estate construction and land development 164 164 — Residential mortgage 7,235 7,235 — Consumer installment 7 7 — Home equity 1,656 1,656 — Subtotal 58,497 61,586 — Total impaired loans: Commercial 57,507 61,142 5,805 Commercial real estate: Owner-occupied 32,107 35,088 2,168 Non-owner occupied 25,907 28,305 1,366 Vacant land 1,562 2,707 59 Total commercial real estate 59,576 66,100 3,593 Real estate construction and land development 3,776 3,776 365 Residential mortgage 17,295 17,295 790 Consumer installment 1,601 1,601 109 Home equity 5,946 5,946 356 Total $ 145,701 $ 155,860 $ 11,018 (Dollars in thousands) Recorded Unpaid Related December 31, 2018 Impaired loans with a valuation allowance: Commercial $ 20,957 $ 23,781 $ 3,546 Commercial real estate: Owner-occupied 14,702 16,519 1,359 Non-owner occupied 16,833 17,452 462 Vacant land 1,008 1,208 96 Total commercial real estate 32,543 35,179 1,917 Real estate construction and land development 126 126 11 Residential mortgage 10,867 10,867 816 Consumer installment 1,126 1,126 186 Home equity 4,432 4,432 328 Subtotal 70,051 75,511 6,804 Impaired loans with no related valuation allowance: Commercial 25,093 25,934 — Commercial real estate: Owner-occupied 10,971 11,601 — Non-owner occupied 12,412 13,411 — Vacant land 2,825 3,911 — Total commercial real estate 26,208 28,923 — Real estate construction and land development 111 111 — Residential mortgage 7,537 7,537 — Consumer installment 377 377 — Home equity 1,496 1,496 — Subtotal 60,822 64,378 — Total impaired loans: Commercial 46,050 49,715 3,546 Commercial real estate: Owner-occupied 25,673 28,120 1,359 Non-owner occupied 29,245 30,863 462 Vacant land 3,833 5,119 96 Total commercial real estate 58,751 64,102 1,917 Real estate construction and land development 237 237 11 Residential mortgage 18,404 18,404 816 Consumer installment 1,503 1,503 186 Home equity 5,928 5,928 328 Total $ 130,873 $ 139,889 $ 6,804 The following schedule presents additional information regarding impaired loans by classes of loans segregated by those requiring a valuation allowance and those not requiring a valuation allowance for the three and six months ended June 30, 2019 and 2018 , and the respective interest income amounts recognized: Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (Dollars in thousands) Average recorded investment Interest income recognized while on impaired status Average recorded investment Interest income recognized while on impaired status Average Interest income Average Interest income Impaired loans with a valuation allowance: Commercial $ 26,587 $ 93 $ 18,139 $ 111 $ 24,109 $ 179 $ 19,271 $ 276 Commercial real estate: Owner-occupied 17,515 130 12,949 81 17,522 255 13,510 163 Non-owner occupied 9,050 9 2,246 10 11,055 54 3,058 21 Vacant land 788 2 1,308 17 896 10 2,502 32 Total commercial real estate 27,353 141 16,503 108 29,473 319 19,070 216 Real estate construction and land development 3,730 2 243 2 3,174 4 234 4 Residential mortgage 10,011 97 12,762 115 10,005 198 13,183 232 Consumer installment 1,250 2 1,067 2 1,213 4 986 3 Home equity 3,830 24 2,812 21 3,739 46 3,253 38 Subtotal 72,761 359 51,526 359 $ 71,713 $ 750 $ 55,997 $ 769 Impaired loans with no related valuation allowance: Commercial 27,865 201 20,078 147 $ 27,510 $ 384 $ 19,102 $ 242 Commercial real estate: Owner-occupied 14,110 73 14,565 81 12,841 126 14,967 137 Non-owner occupied 16,677 58 9,539 38 16,073 105 8,349 103 Vacant land 1,140 — 3,440 — 1,787 — 2,604 — Total commercial real estate 31,927 131 27,544 119 30,701 231 25,920 240 Real estate construction and land development 102 2 1,994 2 76 4 1,051 3 Residential mortgage 7,241 29 7,075 25 7,488 57 6,606 48 Consumer installment 36 — 41 — 226 — 91 — Home equity 1,987 5 2,487 2 2,096 12 2,266 9 Subtotal 69,158 368 59,219 295 $ 68,097 $ 688 $ 55,036 $ 542 Total impaired loans: Commercial 54,452 294 38,217 258 $ 51,619 $ 563 $ 38,373 $ 518 Commercial real estate: Owner-occupied 31,625 203 27,514 162 30,363 381 28,477 300 Non-owner occupied 25,727 67 11,785 48 27,128 159 11,407 124 Vacant land 1,928 2 4,748 17 2,683 10 5,106 32 Total commercial real estate 59,280 272 44,047 227 60,174 550 44,990 456 Real estate construction and land development 3,832 4 2,237 4 3,250 8 1,285 7 Residential mortgage 17,252 126 19,837 140 17,493 255 19,789 280 Consumer installment 1,286 2 1,108 2 1,439 4 1,077 3 Home equity 5,817 29 5,299 23 5,835 58 5,519 47 Total $ 141,919 $ 727 $ 110,745 $ 654 $ 139,810 $ 1,438 $ 111,033 $ 1,311 The difference between an impaired loan's recorded investment and the unpaid principal balance for originated loans represents a partial charge-off resulting from a confirmed loss due to the value of the collateral securing the loan being below the loan balance and management's assessment that full collection of the loan balance is not likely. Impaired loans included $47.9 million and $45.6 million at June 30, 2019 and December 31, 2018 , respectively, of accruing TDRs. Loans Modified Under Troubled Debt Restructurings (TDRs) The following tables present the recorded investment of loans modified into TDRs during the three and six months ended June 30, 2019 and 2018 by type of concession granted. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession. Concession type (Dollars in thousands) Principal Principal Interest Forbearance Total Pre-modification recorded investment Post-modification recorded investment For the three months ended June 30, 2019 Commercial loan portfolio: Commercial $ 14 $ 12 $ 426 $ 3,351 13 $ 3,818 $ 3,803 Commercial real estate: Owner-occupied 156 — 268 — 4 436 424 Non-owner occupied — — 140 — 1 154 140 Vacant land — — — 244 1 269 244 Total commercial real estate 156 — 408 244 6 859 808 Total commercial 170 12 834 3,595 19 4,677 4,611 Consumer loan portfolio: Residential mortgage 81 — 330 — 4 422 411 Consumer installment 15 39 13 — 6 70 67 Home equity 167 19 168 — 8 371 354 Total consumer 263 58 511 — 18 863 832 Total loans $ 433 $ 70 $ 1,345 $ 3,595 37 $ 5,540 $ 5,443 For the six months ended June 30, 2019 Commercial loan portfolio: Commercial $ 388 $ 12 $ 867 $ 6,892 24 $ 8,386 $ 8,159 Commercial real estate: Owner-occupied 2,863 103 297 1,360 9 4,649 4,623 Non-owner occupied — — 140 — 1 154 140 Vacant land 22 — — 244 2 293 266 Total commercial real estate 2,885 103 437 1,604 12 5,096 5,029 Total Commercial 3,273 115 1,304 8,496 36 13,482 13,188 Consumer loan portfolio: Residential mortgage 248 75 330 — 6 679 653 Consumer installment 61 65 13 — 17 149 139 Home equity 275 19 168 — 11 482 462 Total Consumer 584 159 511 — 34 1,310 1,254 Total loans $ 3,857 $ 274 $ 1,815 $ 8,496 70 $ 14,792 $ 14,442 Concession type (Dollars in thousands) Principal Principal Interest Forbearance Total Pre-modification recorded investment Post-modification recorded investment For the three months ended June 30, 2018 Commercial loan portfolio: Commercial $ 740 $ — $ 218 $ — 13 $ 969 $ 958 Commercial real estate: Owner-occupied 370 — 162 31 6 575 563 Total commercial real estate 370 — 162 31 6 575 563 Total commercial 1,110 — 380 31 19 1,544 1,521 Consumer loan portfolio: Residential mortgage 131 40 39 — 3 215 210 Consumer installment 15 44 10 — 9 72 69 Home equity 81 — 87 — 4 171 168 Total consumer 227 84 136 — 16 458 447 Total loans $ 1,337 $ 84 $ 516 $ 31 35 $ 2,002 $ 1,968 For the six months ended June 30, 2018 Commercial loan portfolio: Commercial $ 1,643 $ — $ 1,283 $ 261 31 $ 3,204 $ 3,187 Commercial real estate: Owner-occupied 370 — 888 513 8 1,783 1,771 Non-owner occupied 68 — — — 1 74 68 Total commercial real estate 438 — 888 513 9 1,857 1,839 Total Commercial 2,081 — 2,171 774 40 5,061 5,026 Consumer loan portfolio: Residential mortgage 269 40 39 — 7 357 348 Consumer installment 86 67 38 — 25 200 191 Home equity 266 — 115 — 9 424 381 Total Consumer 621 107 192 — 41 981 920 Total loans $ 2,702 $ 107 $ 2,363 $ 774 81 $ 6,042 $ 5,946 The pre-modification and post-modification recorded investment represents amounts as of the date of loan modification. The difference between the pre-modification and post-modification recorded investment of residential mortgage TDRs represents impairment recognized by the Corporation through the provision for loan losses computed based on a loan's post-modification present value of expected future cash flows discounted at the loan's original effective interest rate. The following schedule presents the Corporation's TDRs at June 30, 2019 and December 31, 2018 : (Dollars in thousands) Accruing TDRs Nonaccrual TDRs Total Jun |
Other Real Estate Owned and Rep
Other Real Estate Owned and Repossessed Assets | 6 Months Ended |
Jun. 30, 2019 | |
Other Real Estate [Abstract] | |
Other Real Estate Owned and Repossessed Assets | Other Real Estate Owned and Repossessed Assets Changes in other real estate owned and repossessed assets, included in interest receivable and other assets on the Consolidated Statements of Financial Position, were as follows: (Dollars in thousands) Other real estate Repossessed Balance at January 1, 2019 $ 5,832 $ 424 Additions (1) 5,420 1,309 Net payments received (214 ) — Disposals (2,372 ) (1,403 ) Write-downs (729 ) — Balance at June 30, 2019 $ 7,937 $ 330 Balance at January 1, 2018 $ 8,182 $ 625 Transfers based on adoption of ASU 2014-09 (2) (189 ) — Additions (1) 2,448 2,645 Net payments received (139 ) — Disposals (4,642 ) (2,319 ) Write-downs (783 ) — Balance at June 30, 2018 $ 4,877 $ 951 (1) Includes loans transferred to other real estate owned and other repossessed assets. (2) In accordance with the updates to Topic 606 adopted by the Corporation effective January 1, 2018, $1.1 million of other real estate owned sold with seller financing were reclassified on the Consolidated Statements of Financial Position to loans and the related $0.9 million of deferred gains were recognized in income as an adjustment to opening retained earnings. Refer to Note 1, Basis of Presentation and Significant Accounting Policies, for further information. At June 30, 2019 , the Corporation had $1.9 million of other real estate owned and repossessed assets as a result of obtaining physical possession in accordance with ASU No. 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure. In addition, there were $3.6 million of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process as of June 30, 2019 . Income and expenses related to other real estate owned and repossessed assets, recorded as a component of "Other" operating expenses in the Consolidated Statements of Income, were as follows: (Dollars in thousands) Other real estate owned Repossessed assets For the three months ended June 30, 2019 Net gain (loss) on sale $ 824 $ (14 ) Write-downs (435 ) — Net operating expenses (248 ) (2 ) Total $ 141 $ (16 ) For the six months ended June 30, 2019 Net gain (loss) on sale $ 1,568 $ (32 ) Write-downs (729 ) — Net operating expenses (555 ) (5 ) Total $ 284 $ (37 ) For the three months ended June 30, 2018 Net gain (loss) on sale $ 23 $ (60 ) Write-downs (132 ) — Net operating expenses (318 ) (2 ) Total $ (427 ) $ (62 ) For the six months ended June 30, 2018 Net gain (loss) on sale $ 779 $ (94 ) Write-downs (783 ) — Net operating expenses (715 ) (3 ) Total $ (719 ) $ (97 ) |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill was $1.13 billion at both June 30, 2019 and December 31, 2018 . The difference between consideration paid for the business and the net fair value of assets and liabilities is recognized as goodwill. Goodwill is not amortized but is subject to impairment testing annually as of October 31 and on an interim basis if events or changes in circumstances indicate assets might be impaired. Impairment exists when the carrying value of goodwill exceeds its fair value. The Corporation’s most recent annual goodwill impairment review performed as of October 31, 2018 did not indicate that an impairment of goodwill existed. The Corporation also determined that no triggering events have occurred that indicated impairment from the most recent valuation date through June 30, 2019 and that the Corporation's goodwill was no t impaired at June 30, 2019 . |
Loan Servicing Rights
Loan Servicing Rights | 6 Months Ended |
Jun. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Loan Servicing Rights | Loan Servicing Rights LSRs are created as a result of selling residential mortgage and commercial real estate loans in the secondary market while retaining the right to service these loans and receive servicing income over the life of the loan, and from acquisitions of other banks that had LSRs. Loans serviced for others are not reported as assets in the Consolidated Statements of Financial Position. The Corporation has elected to account for LSRs under the fair value measurement method. LSRs are established and recorded at the estimated fair value by calculating the present value of estimated future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates, discount rates, servicing costs, and other economic factors, which are determined based on current market conditions. The following table represents the activity for LSRs and the related fair value changes: (Dollars in thousands) Commercial Real Estate Mortgage Total For the three months ended June 30, 2019 Fair value, beginning of period $ 559 $ 64,142 $ 64,701 Additions from loans sold with servicing retained — 2,109 2,109 Changes in fair value due to: Reductions from pay-offs, pay downs and run-off (34 ) (661 ) (695 ) Changes in estimates of fair value (1) — (5,457 ) (5,457 ) Fair value, end of period $ 525 $ 60,133 $ 60,658 For the six months ended June 30, 2019 Fair value, beginning of period $ 451 $ 70,562 $ 71,013 Additions from loans sold with servicing retained 138 4,104 4,242 Changes in fair value due to: 0 0 Reductions from pay-offs, pay downs and run-off (64 ) (1,430 ) (1,494 ) Changes in estimates of fair value (1) — (13,103 ) (13,103 ) Fair value, end of period $ 525 $ 60,133 $ 60,658 Principal balance of loans serviced $ 43,657 $ 6,731,556 $ 6,775,213 For the three months ended June 30, 2018 Fair value, beginning of period $ 441 $ 68,396 $ 68,837 Additions from loans sold with servicing retained 45 2,239 2,284 Changes in fair value due to: 0 Reductions from pay-offs, pay downs and run-off (29 ) (698 ) (727 ) Changes in estimates of fair value (1) — (30 ) (30 ) Fair value, end of period $ 457 $ 69,907 $ 70,364 For the six months ended June 30, 2018 Fair value, beginning of period $ 427 $ 63,414 $ 63,841 Additions from loans sold with servicing retained 88 4,163 4,251 Changes in fair value due to: Reductions from pay-offs, pay downs and run-off (58 ) (1,392 ) (1,450 ) Change in estimates of fair value (1) — 3,722 3,722 Fair value, end of period $ 457 $ 69,907 $ 70,364 Principal balance of loans serviced $ 42,490 $ 6,946,356 $ 6,988,846 (1) Represents estimated LSR value change resulting primarily from market-driven changes in interest rates and prepayments. Included in "Net gain on sale of loans and other mortgage banking revenue" in the Consolidated Statements of Income. Expected and actual loan prepayment speeds are the most significant factors driving the fair value of loan servicing rights. The following table presents assumptions utilized in determining the fair value of loan servicing rights as of June 30, 2019 and December 31, 2018 . Mortgage As of June 30, 2019 Prepayment speed 6.0 - 29.72 Weighted average ("WA") discount rate 10.1 % WA cost to service/per year $ 66 WA ancillary income/per year $ 31 WA float range 2.4 % As of December 31, 2018 Prepayment speed 0.0 - 26.4% WA discount rate 10.1 % WA cost to service/per year $ 66 WA ancillary income/per year $ 31 WA float range 2.5 % The Corporation realized total loan servicing fee income of $4.2 million and $4.4 million for the three months ended June 30, 2019 and 2018 , respectively, and $8.4 million and $9.0 million for the six months ended June 30, 2019 and 2018 , respectively, included in "Net gain on sale of loans and other mortgage banking revenue" in the Consolidated Statements of Income. |
Core Deposit Intangibles
Core Deposit Intangibles | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Core Deposit Intangibles | Core Deposit Intangibles The Corporation recorded core deposit intangible assets associated with each of its acquisitions and its merger with Talmer. Core deposit intangible assets are amortized on an accelerated basis over their estimated useful lives and have an estimated remaining weighted-average useful life of 6.1 years as of June 30, 2019 . The following table sets forth the carrying amount and accumulated amortization of core deposit intangible assets that are amortizable and arose from business combinations or other acquisitions: (Dollars in thousands) June 30, December 31, Gross original amount $ 56,456 $ 56,456 Accumulated amortization 30,621 27,900 Net carrying amount $ 25,835 $ 28,556 Amortization expense recognized on core deposit intangible assets was $1.4 million for both the three months ended June 30, 2019 and 2018 , and $2.7 million and $2.9 million for the six months ended June 30, 2019 and 2018 , respectively. The estimated future amortization expense on core deposit intangible assets for periods ending after June 30, 2019 is as follows: (Dollars in thousands) Estimated amortization expense 2019 2,722 2020 4,851 2021 4,471 2022 4,218 2023 3,591 2024 and thereafter 5,982 |
Derivative Instruments and Bala
Derivative Instruments and Balance Sheet Offsetting | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Balance Sheet Offsetting | Derivative Instruments and Balance Sheet Offsetting In the normal course of business, the Corporation enters into various transactions involving derivative instruments to manage exposure to fluctuations in interest rates and to meet the financing needs of customers (customer-initiated derivatives). These financial instruments involve, to varying degrees, elements of market and credit risk. Market and credit risk are included in the determination of fair value. Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. It is the Corporation’s practice to enter into forward commitments for the future delivery of mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. The Corporation enters into interest rate derivatives to provide a service to certain qualifying customers to help facilitate their respective risk management strategies. These customer-initiated derivatives are not used for interest rate risk management purposes and primarily consist of interest rate swaps, interest rate caps and floors and foreign exchange contracts. The Corporation generally takes offsetting positions with dealer counterparts to mitigate the inherent risk. Income primarily results from the spread between the customer derivative and the offsetting dealer positions. Gains and losses on customer-related derivatives are included in other noninterest income. The Corporation utilizes interest rate swaps designated as cash flow hedges for risk management purposes to manage exposure that arises from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. These interest rate swaps designated as cash flow hedges are used to manage differences in the amount, timing and duration of the Corporation's known or expected cash receipts and its known or expected cash payments principally related to certain variable rate borrowings. The Corporation assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative instruments with the changes in cash flows of the designated hedged transactions. The changes in fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss) and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. For the Corporation's derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings in the same line item as the offsetting loss or gain on the related interest rate swap. The Corporation expects the hedges to remain highly effective during the remaining terms of the swaps. The Corporation additionally has written and purchased option derivatives consisting of instruments to facilitate an equity-linked time deposit product (the "Power Equity CD"). The Power Equity CD is a time deposit that provides the purchaser a guaranteed return of principal at maturity plus a potential equity return (a written option), while the Corporation receives a known stream of funds based on the equity return (a purchased option). The written and purchased options are mirror derivative instruments which are carried at fair value on the Consolidated Statements of Financial Position. The following table presents the notional amount and fair value of the Corporation’s derivative instruments held or issued in connection with customer-initiated and mortgage banking activities. June 30, 2019 December 31, 2018 Fair Value Fair Value (Dollars in thousands) Notional Amount (1) Gross Derivative Assets (2) Gross Derivative Liabilities (2) Notional Amount (1) Gross Derivative Assets (2) Gross Derivative Liabilities (2) Risk management purposes: Derivatives designated as hedging instruments: Interest rate swaps $ 1,145,000 $ 606 $ 25,060 $ 820,000 $ 10,148 $ 3,278 Total risk management purposes 1,145,000 606 25,060 820,000 10,148 3,278 Customer-initiated and mortgage banking derivatives: Customer-initiated derivatives 2,908,127 69,024 70,707 2,477,640 26,680 27,664 Forward contracts related to mortgage loans to be delivered for sale 165,772 — 661 127,159 — 719 Interest rate lock commitments 149,084 2,687 — 54,848 1,049 — Power Equity CD 35,295 751 751 36,771 718 718 Total customer-initiated and mortgage banking derivatives 3,258,278 72,462 72,119 2,696,418 28,447 29,101 Total gross derivatives $ 4,403,278 $ 73,068 $ 97,179 $ 3,516,418 $ 38,595 $ 32,379 (1) Notional or contract amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the Consolidated Statements of Financial Position. (2) Derivative assets are included within "Interest receivable and other assets" and derivative liabilities are included within "Interest payable and other liabilities" on the Consolidated Statements of Financial Position. Included in the fair value of the derivative assets are credit valuation adjustments for counterparty credit risk totaling $1.5 million at June 30, 2019 and $901 thousand at December 31, 2018 . In the normal course of business, the Corporation may decide to settle a forward contract rather than fulfill the contract. Cash received or paid in this settlement manner is included in "Net gain on sale of loans and other mortgage banking revenue" in the Consolidated Statements of Income and is considered a cost of executing a forward contract. The following table presents the net gains (losses) related to derivative instruments reflecting the changes in fair value. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) Location of Gain (Loss) 2019 2018 2019 2018 Forward contracts related to mortgage loans to be delivered for sale Net gain on sale of loans and other mortgage banking revenue $ (8 ) $ (21 ) $ 58 $ (391 ) Interest rate lock commitments Net gain on sale of loans and other mortgage banking revenue 929 211 1,638 763 Power Equity CD Other noninterest income — — — — Customer-initiated derivatives Other noninterest income (409 ) 39 (699 ) 366 Total gain (loss) recognized in income $ 512 $ 229 $ 997 $ 738 The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income relating to interest rate swaps designated as cash flow hedges for the three and six months ended June 30, 2019 and 2018 . (Dollars in thousands) Amount of gain (loss) recognized in other comprehensive income Amount of gain (loss) reclassified from other comprehensive income to interest income or expense Three Months Ended June 30, 2019 Interest rate swaps designated as cash flow hedges $ (21,229 ) $ 1,256 Three Months Ended June 30, 2018 Interest rate swaps designated as cash flow hedges 4,102 589 Six Months Ended June 30, 2019 Interest rate swaps designated as cash flow hedges $ (28,781 ) $ 2,544 Six Months Ended June 30, 2018 Interest rate swaps designated as cash flow hedges 12,065 347 At June 30, 2019 , the Corporation expected $2.2 million of unrealized gains to be reclassified as an increase to interest expense during the following twelve months. Methods and assumptions used by the Corporation in estimating the fair value of its forward contracts, interest rate lock commitments and customer-initiated derivatives are discussed in Note 3 , Fair Value Measurements. Balance Sheet Offsetting Certain financial instruments, including customer-initiated derivatives and interest rate swaps, may be eligible for offset in the Consolidated Statements of Financial Position and/or subject to master netting arrangements or similar agreements. The Corporation is party to master netting arrangements with its financial institution counterparties; however, the Corporation does not offset assets and liabilities under these arrangements for financial statement presentation purposes based on an accounting policy election. The tables below present information about the Corporation’s financial instruments that are eligible for offset. Gross amounts not offset in the statements of financial position (Dollars in thousands) Gross Gross amounts offset in the statements of financial condition Net amounts presented in the statements of financial position Financial Collateral Net June 30, 2019 Offsetting derivative assets Derivative assets (1) $ 69,553 $ — $ 69,553 $ — $ — $ 69,553 Offsetting derivative liabilities Derivative liabilities (1) 95,492 — 95,492 — 37,291 58,201 December 31, 2018 Offsetting derivative assets Derivative assets (1) $ 36,791 $ — $ 36,791 $ — $ (16,120 ) $ 20,671 Offsetting derivative liabilities Derivative liabilities 30,822 — 30,822 — 430 30,392 (1) Amount does not include participated interest rate swaps, forward contracts, interest rate lock commitments and power equity CDs as these instruments are not subject to master netting or similar arrangements. |
Investments in Qualified Afford
Investments in Qualified Affordable Housing Projects, Federal Historic Projects and New Market Tax Credits | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Qualified Affordable Housing Projects, Federal Historic Projects and New Market Tax Credits | Investments in Qualified Affordable Housing Projects, Federal Historic Projects and New Market Tax Credits The Corporation invests in qualified affordable housing projects, federal historic projects, and new market projects for the purpose of community reinvestment and obtaining tax credits. Return on the Corporation's investment in these projects comes in the form of the tax credits and tax losses that pass through to the Corporation. The carrying value of the investments is reflected in "Interest receivable and other assets" on the Consolidated Statements of Financial Position. The Corporation utilizes the proportional amortization method to account for investments in qualified affordable housing projects and the equity method to account for investments in other tax credit projects. Under the proportional amortization method, the Corporation amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits. The Corporation recognized additional income tax expense attributable to the amortization of investments in qualified affordable housing projects of $1.6 million and $1.1 million during the three months ended June 30, 2019 and 2018 , respectively, and $3.3 million and $2.1 million during the six months ended June 30, 2019 and 2018 , respectively. The Corporation's remaining investment in qualified affordable housing projects accounted for under the proportional amortization method totaled $85.8 million at June 30, 2019 and $84.9 million at December 31, 2018 . Under the equity method, the Corporation's share of the earnings or losses is included in "Other" operating expenses on the Consolidated Statements of Income. The Corporation's remaining investment in federal historic tax projects accounted for under the equity method totaled $32.1 million and $13.3 million at June 30, 2019 and December 31, 2018 , respectively. The Corporation's unfunded equity contributions relating to investments in qualified affordable housing projects, federal historic tax projects and new market projects is recorded in "Interest payable and other liabilities" on the Consolidated Statements of Financial Position. The Corporation's remaining unfunded equity contributions totaled $73.4 million and $72.0 million at June 30, 2019 and December 31, 2018 , respectively. Management analyzes these investments for potential impairment when events or changes in circumstances indicate that it is more-likely-than-not that the carrying amount of the investment will not be realized. An impairment loss is measured as the amount by which the carrying amount of an investment exceeds its fair value. During the three and six months ended June 30, 2019 , federal historic tax credits resulted in an income tax benefit of $260 thousand , partially offset by impairment expense of $271 thousand , representing $214 thousand net of tax, recorded in "Other" operating expense. During the three months ended June 30, 2018 , federal historic tax credits resulted in an income tax benefit of $1.9 million , partially offset by impairment expense of $1.7 million , representing $1.4 million net of tax, recorded in "Other" operating expense. During the six months ended June 30, 2018 , federal historic tax credits were placed into service resulting in an income tax benefit of $3.4 million , partially offset by impairment expense of $3.4 million , representing $2.6 million net of tax, recorded in "Other" operating expense. The Corporation consolidates variable interest entities ("VIEs") in which it is the primary beneficiary. In general, a VIE is an entity that either (i) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (ii) has a group of equity owners that are unable to make significant decisions about its activities or (iii) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns as generated by its operations. If any of these characteristics are present, the entity is subject to a variable interest consolidation model, and consolidation is based on variable interests, not on ownership of the entity's outstanding voting stock. Variable interests are defined as contractual, ownership, or other monetary interests in an entity that change with fluctuations in the entity's net asset value. The primary beneficiary consolidates the VIE. The primary beneficiary is defined as the enterprise that has the power to direct the activities and absorb losses or the right to receive benefits. The Corporation is a significant limited partner in the qualified affo rdable housing, federal historic and new market projects it has invested in . These projects meet the definition of VIEs. However, the Corporation is not the primary beneficiary of any of the VIEs in which it holds a limited partnership interest; therefore, the VIEs are not consolidated in the Consolidated Financial Statements. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases On January 1, 2019, the Corporation adopted ASU 2016-02-Leases (Topic 842) and all subsequent ASUs that modified Topic 842. Refer to Note 1 , Basis of Presentation and Significant Accounting Policies, for further details regarding the adoption. Lessee Leases Operating leases in which the Corporation is the lessee are recorded as operating lease right-of-use ("ROU") assets and operating lease liabilities, included in "Interest receivable and other assets" and "Interest payable and other liabilities," respectively, in the Consolidated Statements of Financial Position. Operating lease ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the future minimum lease payments over the lease term. The Corporation has lease agreements with lease and non-lease components, which are accounted for separately. Where an implicit rate is not provided or determinable in the lease, the Corporation uses its incremental borrowing rate as a discount rate, on a collateralized basis, over a similar term. The lease term considers options to extend or terminate the lease when it is reasonably certain that the Corporation will exercise that option. The Corporation's leases relate primarily to real estate property consisting of branches, office space, storage and operation centers with remaining lease terms of generally 1 to 15 years. Certain lease arrangements contain extension options which typically range from 3 to 5 years. During the three and six months ended June 30, 2019, the Corporation obtained $877 thousand and $6.7 million of ROU assets in exchange for new lease liabilities. Cash paid for amounts included in the measurement of lease liabilities from operating leases were $2.0 million and $4.0 million for the three and six months ended June 30, 2019 . As of June 30, 2019 , operating lease ROU assets and liabilities were $40.5 million and $41.4 million , respectively. The following table presents balances and assumptions utilized in determining the right to use asset and lease liability for operating leases as of June 30, 2019 : June 30, 2019 Weighted-average remaining lease terms (in years) 7.85 Weighted-average discount rate 3.1 % The components of net operating lease cost were as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2019 Operating lease cost $ 2,050 3,964 Variable lease cost (1) 247 454 Sublease income (56 ) (111 ) Total lease cost (2) $ 2,241 $ 4,307 (1) Represents non-lease components such as common area maintenance, taxes, insurance and utilities. (2) Included within "Occupancy" expense in the Consolidated Statements of Income. Maturities of operating lease liability due under these lease arrangements as of June 30, 2019 are as follows: (Dollars in thousands) Operating Leases Remainder of 2019 $ 4,081 2020 7,490 2021 7,083 2022 6,149 2023 5,017 Thereafter 17,041 Total $ 46,861 Less: Present value discount 5,458 Lease liability $ 41,403 As of June 30, 2019 , the Corporation has approximately $247.4 million in additional leases for real property that have not yet commenced and are excluded from the lessee maturity table above. Of the aforementioned amount, $231.6 million is related to a lease agreement for the new headquarters building in Detroit, Michigan signed on May 31, 2019, with an organization 50% owned by indirect related parties. The new headquarter lease will have a term of 22.5 years and a rent commencement date of January 1, 2022 with renewal options. At December 31, 2018 , operating lease commitments under lessee arrangements were $7.3 million , $6.2 million , $5.1 million , $4.8 million and $4.4 million for 2019 through 2023, respectively, and $12.1 million in aggregate for all years thereafter. These amounts include variable lease payments under leases that have not yet commenced, which are excluded from the lessee maturity analysis presented in the table above. Lessor Leases The Corporation is the lessor in certain arrangements, primarily for the use of real estate property. Lease agreements may include options to renew, but do not offer the right to purchase the underlying asset at the end of the lease term. Of the $123.7 million of net premises and equipment, $15.1 million represents underlying assets under operating leases as of June 30, 2019 . The components of operating lease income were as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2019 Lease income - operating leases $ 169 363 Total lease income (1) $ 169 $ 363 (1) Included within "Other" noninterest income in the Consolidated Statements of Income. |
Leases | Leases On January 1, 2019, the Corporation adopted ASU 2016-02-Leases (Topic 842) and all subsequent ASUs that modified Topic 842. Refer to Note 1 , Basis of Presentation and Significant Accounting Policies, for further details regarding the adoption. Lessee Leases Operating leases in which the Corporation is the lessee are recorded as operating lease right-of-use ("ROU") assets and operating lease liabilities, included in "Interest receivable and other assets" and "Interest payable and other liabilities," respectively, in the Consolidated Statements of Financial Position. Operating lease ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the future minimum lease payments over the lease term. The Corporation has lease agreements with lease and non-lease components, which are accounted for separately. Where an implicit rate is not provided or determinable in the lease, the Corporation uses its incremental borrowing rate as a discount rate, on a collateralized basis, over a similar term. The lease term considers options to extend or terminate the lease when it is reasonably certain that the Corporation will exercise that option. The Corporation's leases relate primarily to real estate property consisting of branches, office space, storage and operation centers with remaining lease terms of generally 1 to 15 years. Certain lease arrangements contain extension options which typically range from 3 to 5 years. During the three and six months ended June 30, 2019, the Corporation obtained $877 thousand and $6.7 million of ROU assets in exchange for new lease liabilities. Cash paid for amounts included in the measurement of lease liabilities from operating leases were $2.0 million and $4.0 million for the three and six months ended June 30, 2019 . As of June 30, 2019 , operating lease ROU assets and liabilities were $40.5 million and $41.4 million , respectively. The following table presents balances and assumptions utilized in determining the right to use asset and lease liability for operating leases as of June 30, 2019 : June 30, 2019 Weighted-average remaining lease terms (in years) 7.85 Weighted-average discount rate 3.1 % The components of net operating lease cost were as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2019 Operating lease cost $ 2,050 3,964 Variable lease cost (1) 247 454 Sublease income (56 ) (111 ) Total lease cost (2) $ 2,241 $ 4,307 (1) Represents non-lease components such as common area maintenance, taxes, insurance and utilities. (2) Included within "Occupancy" expense in the Consolidated Statements of Income. Maturities of operating lease liability due under these lease arrangements as of June 30, 2019 are as follows: (Dollars in thousands) Operating Leases Remainder of 2019 $ 4,081 2020 7,490 2021 7,083 2022 6,149 2023 5,017 Thereafter 17,041 Total $ 46,861 Less: Present value discount 5,458 Lease liability $ 41,403 As of June 30, 2019 , the Corporation has approximately $247.4 million in additional leases for real property that have not yet commenced and are excluded from the lessee maturity table above. Of the aforementioned amount, $231.6 million is related to a lease agreement for the new headquarters building in Detroit, Michigan signed on May 31, 2019, with an organization 50% owned by indirect related parties. The new headquarter lease will have a term of 22.5 years and a rent commencement date of January 1, 2022 with renewal options. At December 31, 2018 , operating lease commitments under lessee arrangements were $7.3 million , $6.2 million , $5.1 million , $4.8 million and $4.4 million for 2019 through 2023, respectively, and $12.1 million in aggregate for all years thereafter. These amounts include variable lease payments under leases that have not yet commenced, which are excluded from the lessee maturity analysis presented in the table above. Lessor Leases The Corporation is the lessor in certain arrangements, primarily for the use of real estate property. Lease agreements may include options to renew, but do not offer the right to purchase the underlying asset at the end of the lease term. Of the $123.7 million of net premises and equipment, $15.1 million represents underlying assets under operating leases as of June 30, 2019 . The components of operating lease income were as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2019 Lease income - operating leases $ 169 363 Total lease income (1) $ 169 $ 363 (1) Included within "Other" noninterest income in the Consolidated Statements of Income. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Commitments In the normal course of business, the Corporation offers a variety of financial instruments containing credit risk that are not required to be reflected in the Consolidated Statements of Financial Position. These financial instruments include outstanding commitments to extend credit, approved but undisbursed loans (undisbursed loan commitments), credit lines, commercial letters of credit and standby letters of credit. The Corporation has risk management policies to identify, monitor and limit exposure to credit risk. To mitigate credit risk for these financial guarantees, the Corporation generally determines the need for specific covenant, guarantee and collateral requirements on a case-by-case basis, depending on the nature of the financial instrument and the customer's creditworthiness. At June 30, 2019 and December 31, 2018 , the Corporation had $123.7 million and $119.0 million , respectively, of outstanding financial and performance standby letters of credit. The majority of these standby letters of credit are collateralized. At June 30, 2019 , the Corporation had determined that there was $329 thousand of potential losses from standby letters of credit at June 30, 2019 , compared to no potential losses at December 31, 2018 . Commitments to extend credit are agreements to lend to a customer provided there is no violation of any condition established in the commitment. Commitments generally have fixed expiration dates or other termination clauses and may not require payment of a fee. Since many commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Corporation evaluates each customer's creditworthiness on an individual basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management's credit evaluation of the counterparty. The collateral held varies, but may include securities, real estate, accounts receivable, inventory, plant or equipment. Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are included in commitments to extend credit. These lines of credit are generally not collateralized, usually do not contain a specified maturity date and may be drawn upon only to the total extent to which the Corporation is committed. At June 30, 2019 and December 31, 2018 , the Corporation had $3.82 billion and $3.55 billion , respectively, of commitments to extend credit. The Corporation had undisbursed loan commitments of $537.6 million and $493.3 million at June 30, 2019 and December 31, 2018 , respectively. Undisbursed loan commitments are not included in loans on the Consolidated Statements of Financial Position. The majority of undisbursed loan commitments will be funded and convert to a portfolio loan within a one year period. The allowance for credit losses on lending-related commitments included $1.9 million and $1.7 million at June 30, 2019 and December 31, 2018 , respectively, for probable credit losses inherent in the Corporation's unused commitments and was recorded in "Interest payable and other liabilities" in the Consolidated Statements of Financial Position. Contingencies and Guarantees The Corporation has originated and sold certain loans, and additionally acquired the potential liability for those historical originated and sold loans by merged or acquired entities, for which the buyer has limited recourse to us in the event the loans do not perform as specified in the agreements. These loans had an outstanding balance of $12.8 million and $11.6 million at June 30, 2019 and December 31, 2018 , respectively. The maximum potential amount of undiscounted future payments that the Corporation could be required to make in the event of nonperformance by the borrower totaled $12.6 million and $11.4 million at June 30, 2019 and December 31, 2018 , respectively. In the event of nonperformance, the Corporation has rights to the underlying collateral securing the loans. At both June 30, 2019 and December 31, 2018 , the Corporation had recorded a liability of $100 thousand , in connection with the recourse agreements, recorded in "Interest payable and other liabilities" in the Consolidated Statements of Financial Position. In addition, the Corporation acquired certain SBA guaranteed notes in which the guaranteed portion had been sold to a third party investor prior to the Corporation's acquisition. In the event these loans default and the SBA guaranty is no longer intact (i.e. an issue found to have occurred during the origination or the liquidation of the loans) the Corporation would be liable to make the loan whole to the third party investor. The maximum potential amount of undiscounted future payments that the Corporation could be required to make in the event of default by the borrower totaled $17.9 million and $19.1 million at June 30, 2019 and December 31, 2018 , respectively. In the event of default, the Corporation has rights to the underlying collateral securing the loans. At June 30, 2019 and December 31, 2018 , the Corporation had recorded a liability of $891 thousand and $1.2 million , respectively. Representations and Warranties In connection with the Corporation's mortgage banking loan sales, and the historical sales of merged or acquired entities, the Corporation makes certain representations and warranties that the loans meet certain criteria, such as collateral type and underwriting standards. The Corporation may be required to repurchase individual loans and/or indemnify the purchaser against losses if the loan fails to meet established criteria. At June 30, 2019 and December 31, 2018 , the liability recorded in connection with these representations and warranties totaled $3.2 million and $4.1 million , respectively. A summary of the reserve for representations and warranties of the Corporation is as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Reserve balance at beginning of period $ 3,983 $ 5,105 $ 4,084 $ 5,349 Reserve reduction (807 ) (243 ) (908 ) (487 ) Charge-offs — (2 ) — (2 ) Ending reserve balance $ 3,176 $ 4,860 $ 3,176 $ 4,860 (Dollars in thousands) June 30, 2019 December 31, 2018 Reserve balance Liability for specific claims $ 454 $ 398 General allowance 2,722 3,686 Total reserve balance $ 3,176 $ 4,084 |
Borrowings and Other Short-Term
Borrowings and Other Short-Term Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings and Other Short-Term Liabilities | Borrowings and Other Short-Term Liabilities A summary of the Corporation's short- and long-term borrowings, and other short-term liabilities follows: June 30, 2019 December 31, 2018 (Dollars in thousands) Amount Weighted Average Rate (1) Amount Weighted Average Rate (1) Short-term borrowings: FHLB advances: 2.29% - 2.60% fixed-rate notes $ 2,580,000 2.44 % $ 2,035,000 2.47 % AFX short-term borrowings 35,000 2.41 — — Total short-term borrowings $ 2,615,000 2.44 % $ 2,035,000 2.47 % Long-term borrowings: FHLB advances: 1.00% - 2.72% fixed-rate notes due 2019 to 2025 (2) $ 410,073 2.00 % $ 410,102 2.00 % Subordinated debt obligations: floating-rate based on three-month LIBOR plus 1.45% - 2.85% due 2034 to 2035 (3) 11,648 4.71 11,572 4.85 Subordinated debt obligations: floating-rate based on three-month LIBOR plus 3.25% due in 2032 (4) 4,348 5.84 4,328 5.65 Total long-term borrowings 426,069 2.11 426,002 2.11 Total borrowings $ 3,041,069 2.39 % $ 2,461,002 2.41 % Other short-term liabilities: Collateralized customer deposits $ 291,671 0.70 % $ 382,687 0.75 % (1) Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. (2) The June 30, 2019 balances include advances payable of $410.0 million and purchase accounting premiums of $73 thousand . The December 31, 2018 balance includes advances payable of $410.0 million and purchase accounting premiums of $102 thousand . (3) The June 30, 2019 balance includes advances payable of $15.0 million and purchase accounting discounts of $3.4 million . The December 31, 2018 balance includes advances payable of $15.0 million and purchase accounting discounts of $3.4 million . (4) The June 30, 2019 balance includes advances payable of $5.0 million and purchase accounting discounts of $652 thousand . The December 31, 2018 balance includes advances payable of $5.0 million and purchase accounting discounts of $672 thousand . Chemical Bank is a member of the FHLB, which provides short- and long-term funding collateralized by mortgage related assets to its members. Each advance is payable at its maturity date, with a prepayment penalty for fixed-rate advances. The Corporation's FHLB advances, including both short-term and long-term, require monthly interest payments and are collateralized by commercial and residential mortgage loans totaling $7.70 billion as of June 30, 2019 . The Corporation's additional borrowing availability through the FHLB, subject to the FHLB's credit requirements and policies and based on the amount of FHLB stock owned by the Corporation, was $25.0 million at June 30, 2019 . Chemical Bank is additionally a member of the American Financial Exchange ("AFX"), through which it may borrow funds on an overnight or short-term basis with a group of pre-approved commercial banks. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Corporation earns a variety of revenue including interest and fees from customers as well as revenues from non-customers. Certain sources of revenue are recognized within interest income and are outside of the scope of ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"). Other sources of revenue fall within the scope of ASC 606 and are mostly recognized within "Noninterest income" in the Consolidated Statements of Income. The Corporation recognizes revenue when the performance obligations related to the transfer of goods or services under the terms of a contract are satisfied. Some obligations are satisfied at a point in time while others are satisfied over a period of time. Revenue is recognized as the amount of consideration expected to be received in exchange for transferring goods or services to a customer and is segregated based on the nature of product and services offered as part of contractual arrangements. Revenue within the scope of ASC 606 are discussed below. • Service charges and fees on deposit accounts include fees and other charges the Corporation receives to provide various services, including but not limited to, maintaining an account with a customer, providing overdraft services, wire transfers, transferring funds, and accepting and executing stop-payment orders. The consideration includes both fixed (e.g., account maintenance fees) and transaction fees (i.e., wire-transfer fee). Fixed fees are recognized over the period of time the service is provided while transaction fees are recognized when a specific service is rendered to the customer. • Wealth management revenue includes fee income generated from personal and institutional customers. The Corporation also provides investment management services. Services are rendered over a period of time, over which revenue is recognized. Wealth management revenue also includes commissions that are earned for placing a brokerage transaction for execution, such as stocks or other investments. Revenue is recognized once the transaction is completed and the Corporation is entitled to receive consideration. • Other charges and fees for customer services includes service charges on deposit accounts and other fees including account analysis fees, monthly service fees, check orders, ATM fees and other service charges. The Corporation's performance obligation for account analysis fees and monthly service fees is generally satisfied, and therefore, revenue is recognized over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the performance obligation is satisfied and related revenue recognized, at a point in time. • Other noninterest expense includes net gain or loss on sales of other real estate and repossessed assets. Revenue is recognized at the time the sale is complete and the Corporation is entitled to receive consideration, including sales that are seller financed as receipt of all payment is expected. The following table presents total noninterest income segregated between contracts with customers within the scope of ASC 606 and those within the scope of other GAAP Topics. The following additionally presents revenues from customers and non-customers that are included within noninterest expense. Three Months Ended Six Months Ended (Dollars in thousands) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Noninterest income Service charges and fees on deposit accounts $ 2,986 $ 4,462 $ 5,983 $ 8,925 Wealth management revenue 1,321 1,268 2,621 2,052 Other charges and fees for customer services 1,244 1,389 2,461 3,787 Noninterest income from contracts with customers within the scope of ASC 606 5,551 7,119 11,065 14,764 Noninterest income within the scope of other GAAP topics 32,613 30,899 51,956 63,808 Total noninterest income $ 38,164 $ 38,018 $ 63,021 $ 78,572 Noninterest expense Other $ (810 ) $ 38 $ (1,536 ) $ (684 ) Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity's obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Corporation's noninterest income streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is most often received immediately or shortly after the Corporation satisfies its performance obligation and revenue is recognized. The Corporation does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of June 30, 2019 and December 31, 2018 , the Corporation did not have a material amount of contract balances. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Corporation maintains share-based compensation plans under which it periodically grants share-based awards for a fixed number of shares to certain officers of the Corporation. The fair value of share-based awards is recognized as compensation expense over the requisite service or performance period. During the three months ended June 30, 2019 and 2018 , share-based compensation expense related to share-based awards totaled $2.8 million and $2.4 million , respectively. During the six months ended June 30, 2019 and 2018 , share-based compensation expense related to share-based awards totaled $5.1 million and $4.1 million , respectively. The excess tax benefit realized from share-based compensation transactions during the three months ended June 30, 2019 and 2018 was an expense of $16 thousand and a benefit of $399 thousand , respectively, and during the six months ended June 30, 2019 and 2018 was a benefit of $306 thousand and $1.8 million , respectively. During the six months ended June 30, 2019 , the Corporation granted 379,260 restricted stock units to certain officers of the Corporation. On May 7, 2019, the shareholders of the Corporation approved the Stock Incentive Plan of 2019, which provides for 2,400,000 shares of the Corporation's common stock to be made available for future equity-based awards and canceled the amount of shares available for future grant under prior share-based compensation plans. At June 30, 2019 , there were 2,388,937 shares of common stock available for future grants under the Stock Incentive Plan of 2019. Stock Options The Corporation issues stock options to certain officers from time to time. The exercise price on stock options equals the current market price of the Corporation's common stock on the date of grant and stock options expire ten years from the date of grant. Stock options granted after 2012 vest ratably over a five -year period. Stock options granted prior to 2016 were fully vested upon the merger with Talmer. Stock options assumed by the Corporation in the merger with Talmer were fully vested prior to assumption. A summary of activity for the Corporation's stock options as of and for the six months ended June 30, 2019 is presented below: Non-Vested Stock Options Outstanding Stock Options Outstanding Number of Options Weighted- Average Exercise Price Per Share Weighted- Average Grant Date Fair Value Per Share Number of Options Weighted- Average Exercise Price Per Share Outstanding at December 31, 2018 221,658 $ 38.37 $ 7.16 777,443 $ 31.42 Exercised — — — (97,284 ) 29.69 Vested (65,104 ) 37.24 6.98 — — Forfeited/expired (28,566 ) 36.40 6.82 (31,874 ) 36.40 Outstanding at June 30, 2019 127,988 $ 39.38 $ 7.33 648,285 $ 31.43 Exercisable/vested at June 30, 2019 520,297 $ 29.48 The weighted-average remaining contractual terms were 5.2 years for all outstanding stock options and 4.8 years for exercisable stock options at June 30, 2019 . The intrinsic value of all outstanding in-the-money stock options and exercisable in-the-money stock options was $7.5 million and $6.8 million , respectively, at June 30, 2019 . The aggregate intrinsic values of outstanding and exercisable options at June 30, 2019 were calculated based on the closing market price of the Corporation’s common stock on June 30, 2019 of $41.11 per share less the exercise price. Options with intrinsic values less than zero, or "out-of-the-money" options, are not included in the aggregate intrinsic value reported. The total intrinsic value of stock options as of June 30, 2018 and December 31, 2018 was $19.8 million and $26.6 million , respectively. Total cash received from options exercises during the six months ended June 30, 2019 and 2018 was $338 thousand and $2.2 million , respectively. At June 30, 2019 , unrecognized compensation expense related to stock options totaled $901 thousand and is expected to be recognized over a remaining weighted average period of 2.1 years . Restricted Stock Units The Corporation grants Performance-Based Restricted Stock Units ("PRSUs") and Time-Based Restricted Stock Units ("TRSUs") (collectively referred to as "RSUs") to certain officers from time to time. The PRSUs vest based on the Corporation achieving certain performance target levels and the grantee completing the requisite service period. The PRSUs are eligible to vest from 0.5 x to 1.5 x the number of units originally granted depending on which, if any, of the performance target levels are met. However, if the minimum performance target levels are not achieved, no shares will become vested or be issued for that respective year's PRSUs. The TRSUs vest upon satisfaction of a service condition. Upon achievement of the performance target level and/or satisfaction of a service condition, as applicable, the RSUs are converted into shares of the Corporation's common stock on a one-to-one basis. Compensation expense related to RSUs is recognized over the expected requisite performance or service period, as applicable. A summary of the activity for RSUs as of and for the six months ended June 30, 2019 is presented below: Number of Units Weighted-average grant date fair value per unit Outstanding at December 31, 2018 576,490 $ 49.35 Granted 379,260 44.95 Converted into shares of common stock (123,686 ) 38.83 Forfeited/expired (21,406 ) 50.03 Outstanding at June 30, 2019 810,658 $ 48.88 At June 30, 2019 , unrecognized compensation expense related to RSUs totaled $27.6 million and is expected to be recognized over a remaining weighted average period of 3.5 years . Restricted Stock Awards The Corporation assumed restricted stock awards in the merger with Talmer that vested upon completion of service requirements. The fair value of these awards is equal to the market price of the Corporation's common stock at the date the awards were assumed with the portion of the fair value related to post-combination service. The Corporation recognizes stock-based compensation expense over the vesting period, using the straight-lined method, based upon the number of shares of restricted stock ultimately expected to vest. The following table provides information regarding restricted stock awards. All restricted stock awards fully vested during the six months ended June 30, 2019 . Nonvested restricted stock awards Number of Awards Weighted-average acquisition-date Nonvested at January 1, 2019 40,852 $ 46.23 Vested (40,852 ) 46.23 Nonvested at June 30, 2019 — $ — |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans The Corporation's retirement plans include a qualified defined benefit pension plan, a nonqualified pension plan, a nonqualified postretirement benefit plan, a 401(k) savings plan, and a multi-employer defined benefit plan. Qualified Defined Benefit Pension Plan The Chemical Financial Corporation Employees’ Pension Plan (the "Pension Plan") is a qualified defined-benefit, noncontributory pension plan, which provides for postretirement pension benefits for certain salaried employees of the Corporation and its subsidiary, Chemical Bank. Benefits under the Pension Plan were partially frozen effective June 30, 2006. Under the partial freeze of the Pension Plan, benefits for employees with less than 15 years of service or whose combined age plus years of service were less than 65 at June 30, 2006, were based on years of vested service at June 30, 2006 and generally the average of the employee's salary for the five years ended June 30, 2006. In addition, no employee hired after January 1, 2006 was eligible to participate in the Pension Plan. Effective September 30, 2017, the Pension and Compensation Committee approved an amendment to the Pension Plan to cease accruing additional benefits under the existing pension benefit formula after the effective date and all accrued benefits were frozen. Retirement benefits under the Pension Plan are based on years of vested service at September 30, 2017, up to a maximum of thirty years, and the employee's average annual pay for the five highest consecutive years during the ten years preceding September 30, 2017, except for employees whose benefits were previously frozen during 2006. On May 7, 2019, the Corporation's board of directors approved the termination of the Pension Plan as of August 31, 2019, subject to revocation if the Merger is not consummated. The fair value of Pension Plan assets exceeds the recorded liability by approximately $19.0 million at June 30, 2019 , which is considered actuarially sufficient for termination purposes. Pension Plan benefits are the present value of estimated future periodic payments that are attributable to services rendered by the employees to the valuation date. Benefits include the benefits expected to be paid to (a) retired or terminated employees or their beneficiaries and (b) present employees or their beneficiaries. A discount rate of 4.32% was utilized for the projected benefit obligation as of June 30, 2019 . The Pension Plan is fully funded as of June 30, 2019 . Nonqualified Pension Plan The Corporation has a supplemental defined benefit nonqualified pension plan, the Chemical Financial Corporation Supplemental Pension Plan ("SERP"). The Corporation established the SERP to provide payments to certain executive officers of the Corporation, as determined by the Compensation and Pension Committee. The Internal Revenue Code limits both the amount of eligible compensation for benefit calculation purposes and the amount of annual benefits that may be paid from a tax qualified retirement plan. The SERP was designed to provide benefits to executive officers of the Corporation that would have been entitled, calculated under the provisions of the Pension Plan, as if the limits imposed by the Internal Revenue Code did not apply. The SERP is an unfunded plan and, therefore, has no assets. Effective September 30, 2017, the Pension and Compensation Committee approved a curtailment to the SERP due to the retirement of the final remaining participant in the SERP. As of June 30, 2019 , a $333 thousand liability included in other liabilities was recorded in the Consolidated Statements of Financial Position related to a former participant of the SERP. As of June 30, 2019 , the SERP had no active participants. Nonqualified Postretirement Benefit Plan The Corporation has a nonqualified postretirement benefit plan ("Postretirement Plan") that provides medical and dental benefits, upon retirement, to a limited number of active and retired employees. The majority of the retirees are required to make contributions toward the cost of their benefits based on their years of credited service and age at retirement. Beginning January 1, 2012, the Corporation amended the Postretirement Plan to extend coverage to employees who were at least age 50 as of January 1, 2012. These employees must also retire at age 60 or older, have at least twenty-five years of service with the Corporation and be participating in the active employee group health insurance plan in order to be eligible to participate in the Corporations' Postretirement Plan. Eligible employees may also cover their spouse until age 65 as long as the spouse is not offered health insurance coverage through his or her employer. Employees and their spouses eligible to participate in the Postretirement Plan will be required to make contributions toward the cost of their benefits upon retirement, with the contribution levels designed to cover the projected overall cost of these benefits over the long-term. Retiree contributions are generally adjusted annually. The accounting for these postretirement benefits anticipates changes in future cost-sharing features such as retiree contributions, deductibles, copayments and coinsurance. The Corporation reserves the right to amend, modify or terminate these benefits at any time. The components of net periodic benefit cost for the Corporation’s qualified and nonqualified pension plans and nonqualified postretirement benefit plan are as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Defined Benefit Pension Plans Interest cost $ 1,172 $ 1,092 $ 2,345 $ 2,184 Expected return on plan assets (2,190 ) (2,220 ) (4,381 ) (4,439 ) Amortization of unrecognized net loss 141 178 281 355 Net periodic benefit cost (income) (1) $ (877 ) $ (950 ) $ (1,755 ) $ (1,900 ) Postretirement Benefit Plan Service cost (2) $ — $ 1 $ 1 $ 1 Interest cost 21 20 43 41 Amortization of unrecognized net gain (45 ) (36 ) (90 ) (71 ) Net periodic benefit cost (income) (1) $ (24 ) $ (15 ) $ (46 ) $ (29 ) (1) Net periodic benefit cost (income), excluding service cost is included "Other" operating expenses on the Consolidated Statements of Income. (2) Service cost is included in "Salaries, wages and employee benefits expense" on the Consolidated Statements of Income. 401(k) Savings Plan The Corporation's 401(k) Savings Plan is available to all employees and provides employees with tax deferred salary deductions and alternative investment options. Effective January 1, 2018, the Corporation provides a safe harbor matching contribution of the participants elective deferrals up to a maximum of 6.0% of eligible compensation up to the maximum amount allowed under the Internal Revenue Code. The Corporation's match under the 401(k) Savings Plan was $2.4 million and $4.8 million for the three and six months ended June 30, 2019 , respectively, compared to $2.0 million and $4.8 million for the three and six months ended June 30, 2018 , respectively. The 401(k) Savings Plan provides employees with the option to invest in the Corporation's common stock. |
Regulatory Capital and Reserve
Regulatory Capital and Reserve Requirements | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Capital and Reserve Requirements | Regulatory Capital and Reserve Requirements Federal and state banking regulations place certain restrictions on the transfer of assets, in the form of dividends, loans, or advances, from Chemical Bank to the Corporation. As of June 30, 2019 , substantially all of the assets of Chemical Bank were restricted from transfer to the Corporation in the form of loans or advances. Dividends from Chemical Bank are the principal source of funds for the Corporation. In addition to the statutory limits, the Corporation considers the overall financial and capital position of Chemical Bank prior to making any cash dividend decisions. The Corporation and Chemical Bank are subject to various regulatory capital requirements administered by federal banking agencies. Under these capital requirements, Chemical Bank must meet specific capital guidelines that involve quantitative measures of assets and certain off-balance sheet items as calculated under regulatory accounting practices. In addition, capital amounts and classifications are subject to qualitative judgments by regulators. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Consolidated Financial Statements. Management believes as of June 30, 2019 , the Corporation and Chemical Bank met all capital adequacy requirements to which they are subject. Quantitative measures established by regulation to ensure capital adequacy require minimum ratios of Tier 1 capital to average assets (Leverage Ratio) and Common Equity Tier 1, Tier 1 and Total capital to risk-weighted assets. These capital guidelines assign risk weights to on- and off-balance sheet items in arriving at total risk-weighted assets. Minimum capital levels are based upon the perceived risk of various asset categories and certain off-balance sheet instruments. Risk-weighted assets for the Corporation and Chemical Bank totaled $17.02 billion and $16.99 billion at June 30, 2019 , respectively, compared to $16.10 billion and $16.07 billion at December 31, 2018 , respectively. Effective January 1, 2015, the Corporation adopted the Basel III regulatory capital framework as approved by federal banking agencies, which was subject to a multi-year phase-in period. The adoption of this new framework modified the calculation of the various capital ratios, added a new ratio, common equity tier 1, and revised the adequately and well capitalized thresholds. In addition, Basel III establishes a new capital conservation buffer of 2.5% of risk-weighted assets, which was phased-in over a multi-year period beginning January 1, 2016. The capital conservation buffer for 2019 is 2.5% , which is now fully phased-in, and was 1.875% for 2018 . The Corporation has elected to opt-out of including accumulated other comprehensive income in common equity tier 1 capital. At June 30, 2019 and December 31, 2018 , Chemical Bank's capital ratios exceeded the quantitative capital ratios required for an institution to be considered "well-capitalized." Significant factors that may affect capital adequacy include, but are not limited to, a disproportionate growth in assets versus capital and a change in mix or credit quality of assets. There are no conditions or events since that notification that management believes have changed the institutions' category. The summary below compares the actual capital amounts and ratios with the quantitative measures established by regulation to ensure capital adequacy: Actual Minimum Required for Capital Adequacy Purposes Including Capital Conservation Buffer Required to be Well Capitalized Under Prompt Corrective Action Regulations (Dollars in thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio June 30, 2019 Total Capital to Risk-Weighted Assets Corporation $ 1,951,444 11.5 % $ 1,787,527 10.5 % N/A N/A Chemical Bank 1,928,735 11.3 1,784,388 10.5 $ 1,699,417 10.0 % Tier 1 Capital to Risk-Weighted Assets Corporation 1,813,446 10.7 1,447,046 8.5 N/A N/A Chemical Bank 1,806,734 10.6 1,444,504 8.5 1,359,534 8.0 Common Equity Tier 1 Capital to Risk-Weighted Assets Corporation 1,813,446 10.7 1,191,685 7.0 N/A N/A Chemical Bank 1,806,734 10.6 1,189,592 7.0 1,104,621 6.5 Leverage Ratio Corporation 1,813,446 8.7 833,418 4.0 N/A N/A Chemical Bank 1,806,734 8.7 832,372 4.0 1,040,465 5.0 December 31, 2018 Total Capital to Risk-Weighted Assets Corporation $ 1,855,922 11.5 % $ 1,590,323 9.9 % N/A N/A Chemical Bank 1,825,742 11.4 1,586,719 9.9 $ 1,606,804 10.0 % Tier 1 Capital to Risk-Weighted Assets Corporation 1,723,004 10.7 1,268,232 7.9 N/A N/A Chemical Bank 1,708,724 10.6 1,265,358 7.9 1,285,444 8.0 Common Equity Tier 1 Capital to Risk-Weighted Asset Corporation 1,723,004 10.7 1,026,664 6.4 N/A N/A Chemical Bank 1,708,724 10.6 1,024,338 6.4 1,044,423 6.5 Leverage Ratio Corporation 1,723,004 8.7 793,669 4.0 N/A N/A Chemical Bank 1,708,724 8.6 792,184 4.0 990,230 5.0 |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participating rights in undistributed earnings. Average shares of common stock for diluted net income per common share include shares to be issued upon the exercise of stock options granted under the Corporation’s share-based compensation plans, restricted stock units that may be converted to stock, restricted stock awards and stock to be issued under the deferred stock compensation plan for non-employee directors. The factors used in the earnings per share computation follow: Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2019 2018 2019 2018 Net income $ 69,594 $ 68,988 $ 132,536 $ 140,584 Net income allocated to participating securities — 40 24 105 Net income allocated to common shareholders (1) $ 69,594 $ 68,948 $ 132,512 $ 140,479 Weighted average common shares - issued 71,554 71,371 71,526 71,334 Average unvested restricted share awards — (42 ) (12 ) (54 ) Weighted average common shares outstanding - basic 71,554 71,329 71,514 71,280 Effect of dilutive securities Weighted average common stock equivalents 718 697 693 686 Weighted average common shares outstanding - diluted 72,272 72,026 72,207 71,966 EPS available to common shareholders Basic earnings per common share $ 0.97 $ 0.97 $ 1.85 $ 1.97 Diluted earnings per common share $ 0.96 $ 0.96 $ 1.84 $ 1.95 (1) Net income allocated to common shareholders for basic and diluted earnings per share may differ under the two-class method as a result of adding common share equivalents for options to dilutive shares outstanding, which alters the ratio used to allocate net income to common shareholders and participating securities for the purposes of calculating diluted earnings per share. For the effect of dilutive securities, the average stock valuation is $41.46 per share and $56.46 per share for the three months ended June 30, 2019 and 2018 , respectively, and $42.33 per share and $56.35 per share for the six months ended June 30, 2019 and 2018 , respectively. The average number of exercisable employee stock option awards outstanding that were "out-of-the-money," whereby the option exercise price per share exceeded the market price per share and, therefore, were not included in the computation of diluted earnings per common share because they would have been anti-dilutive totaled 41,695 and 46,940 for the three and six months ended June 30, 2019 , respectively, and 59,303 and 65,114 for the three and six months ended June 30, 2018 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes within each component of accumulated other comprehensive income (loss), net of related tax benefit/expense for the three and six months ended June 30, 2019 , and 2018 : (Dollars in thousands) Unrealized gains (losses) on securities carried at fair value, net of tax Defined Benefit Pension Plan, net of tax Unrealized gains (losses) on cash flow hedges, net of tax Total For the three months ended June 30, 2019 Beginning balance at April 1, 2019 $ (8,260 ) $ (28,691 ) $ (1,556 ) $ (38,507 ) Other comprehensive income (loss) before reclassifications 29,079 — (16,771 ) 12,308 Amounts reclassified from accumulated other comprehensive income (loss) (3,286 ) 76 (992 ) (4,202 ) Net current period other comprehensive income (loss) 25,793 76 (17,763 ) 8,106 Ending balance $ 17,533 $ (28,615 ) $ (19,319 ) $ (30,401 ) For the three months ended June 30, 2018 Beginning balance at April 1, 2018 $ (32,501 ) $ (19,696 ) $ 11,143 $ (41,054 ) Other comprehensive income (loss) before reclassifications (9,182 ) — 3,240 (5,942 ) Amounts reclassified from accumulated other comprehensive income (loss) (2 ) 112 (465 ) (355 ) Net current period other comprehensive income (loss) (9,184 ) 112 2,775 (6,297 ) Ending balance $ (41,685 ) $ (19,584 ) $ 13,918 $ (47,351 ) For the six months ended June 30, 2019 Beginning balance at January 1, 2019 $ (37,772 ) $ (28,766 ) $ 5,428 $ (61,110 ) Other comprehensive income (loss) before reclassifications 58,660 — (22,737 ) 35,923 Amounts reclassified from accumulated other comprehensive income (loss) (3,355 ) 151 (2,010 ) (5,214 ) Net current period other comprehensive income (loss) 55,305 151 (24,747 ) 30,709 Ending balance $ 17,533 $ (28,615 ) $ (19,319 ) $ (30,401 ) For the six months ended June 30, 2018 Beginning balance at December 31, 2017 $ (10,348 ) $ (19,808 ) $ 4,658 $ (25,498 ) Cumulative effect adjustment of change in accounting policy, net of tax impact (1) $ (344 ) $ — $ 3 (341 ) Beginning balance at January 1, 2018 (10,692 ) (19,808 ) 4,661 (25,839 ) Other comprehensive income (loss) before reclassifications (30,991 ) — 9,531 (21,460 ) Amounts reclassified from accumulated other comprehensive income (loss) (2 ) 224 (274 ) (52 ) Net current period other comprehensive income (loss) (30,993 ) 224 9,257 (21,512 ) Ending balance $ (41,685 ) $ (19,584 ) $ 13,918 $ (47,351 ) (1) Refer to Note 1 , Basis of Presentation and Significant Accounting Policies for further details on the adoption of ASU 2016-01 and ASU 2017-12. The following table summarizes the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2019 , and 2018 : (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Income Statement Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Gains and losses on investment securities carried at fair value $ 4,160 $ 3 $ 4,247 $ 3 Net gain on sale of investment securities (noninterest income) (874 ) (1 ) (892 ) (1 ) Income tax expense $ 3,286 $ 2 $ 3,355 $ 2 Net Income Amortization of defined benefit pension plan items $ 96 $ 142 $ 191 $ 284 Salaries, wages and employee benefits (operating expenses) (20 ) (30 ) (40 ) (60 ) Income tax expense $ 76 $ 112 151 $ 224 Net Loss Gains and losses on cash flow hedges $ (1,256 ) $ (589 ) $ (2,544 ) $ (347 ) Interest on short-term borrowings (interest expense) 264 124 534 73 Income tax benefit $ (992 ) $ (465 ) $ (2,010 ) $ (274 ) Net Income |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Chemical Financial Corporation ("Corporation" or "Chemical") operates in a single operating segment — commercial banking. The Corporation is a financial holding company, headquartered in Detroit, Michigan, that operates through one commercial bank, Chemical Bank. Chemical Bank operates within Michigan, Ohio and Northern Indiana as a Michigan state-chartered commercial bank. Chemical Bank operates through an internal organizational structure of six regional banking units and offers a full range of traditional banking and fiduciary products and services to the residents and business customers in the Corporation's geographical market areas. The products and services offered by the regional banking units, through branch banking offices, are generally consistent throughout the Corporation, as is the pricing of those products and services. The marketing of products and services throughout the Corporation's regional banking units is generally uniform, as many of the markets served by the regional banking units overlap. The distribution of products and services is generally uniform throughout the Corporation's regional banking units and is achieved primarily through retail branch banking offices, automated teller machines and electronically accessed banking products. The Corporation's primary sources of revenue are interest from its loan products and investment securities, service charges and fees from customer deposit accounts, wealth management revenue and net gain on sale of loans and other mortgage banking revenue. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited Consolidated Financial Statements of the Corporation and its subsidiaries have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") for interim financial information and with instructions to Form 10-Q, Securities and Exchange Commission ("SEC") rules and interpretive releases and prevailing practices within the banking industry and Rule 10-01 of Regulation S-X. Accordingly, the interim Consolidated Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation’s Consolidated Financial Statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2018 . In the opinion of management, the accompanying unaudited interim Consolidated Financial Statements contain all adjustments believed necessary to present fairly the financial condition and results of operations of the Corporation for the periods presented. All significant income and expenses are recorded on the accrual basis. Intercompany accounts and transactions have been eliminated in preparing the Consolidated Financial Statements. Operating results for the six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . |
Proposed Merger with TCF Financial Corporation | Pending Merger with TCF Financial Corporation Chemical and TCF Financial Corporation ("TCF") have entered into an Agreement and Plan of Merger, dated as of January 27, 2019, which we refer to as the merger agreement. Under the merger agreement, Chemical and TCF have agreed to combine their respective companies in a merger of equals, pursuant to which TCF will merge with and into Chemical, with Chemical continuing as the surviving entity, in a transaction we refer to as the merger. Immediately following the merger or at such later time as the parties may mutually agree, Chemical Bank will merge with and into TCF National Bank, with TCF National Bank as the surviving bank, in a transaction we refer to as the bank merger. The merger has received all necessary regulatory approvals in addition to approvals from the shareholders of both companies. The pending transaction is anticipated to close on August 1, 2019, subject to satisfaction of customary closing conditions. The transaction is discussed in more detail in Note 2 . |
Use of Estimates | Use of Estimates Management makes estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying footnotes. Estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses, expected cash flows from acquired loans, income taxes and the valuation of loan servicing rights. Actual results could differ from these estimates. |
Reclassifications | Reclassifications Certain amounts appearing in the Consolidated Financial Statements and notes thereto for prior periods have been reclassified to conform to the current presentation. The reclassification had no effect on net income or shareholders’ equity as previously reported, except in case of the cumulative effect adjustment of change in accounting policy as noted. |
Recently Adopted Accounting Policy and Principles | Recently Adopted Accounting Principles Standard Description Adoption Date Effect on the financial statements ASU No. 2014-09 - Revenue from Contracts with Customers (Topic 606) ASU No. 2016-08 - Principal versus Agent Considerations ASU No. 2016-10 - Identifying Performance Obligations and Licensing ASU No. 2016-12 - Narrow-scope Improvements and Practical Expedients ("Updates to Topic 606") The core principle of the Updates to Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is intended to clarify and converge the revenue recognition principles under GAAP and International Financial Reporting Standards and to streamline revenue recognition requirements in addition to expanding required revenue recognition disclosures. January 1, 2018 under the modified retrospective method A large majority of the Corporation's revenue is derived from net interest income, which is excluded from the scope of the guidance. Following detailed review of the Corporation's revenue streams not derived from net interest income on financial assets and liabilities, management identified the recognition of gains from other real estate sales financed by the Corporation to be in the scope of this amended guidance. Effective January 1, 2018, revenue for new seller financed other real estate owned sales is determined according to the Updates to Topic 606. If all qualifications are met, gains associated with the sales are recognized into income at the time of closing and therefore not deferred. The cumulative effect of the Updates to Topic 606 increased retained earnings by $1.2 million upon adoption. Additional required disclosures have been included in Note 15, Revenue from Contracts with Customers. The adoption is not expected to have a material impact on the Corporation's net income on an ongoing basis. Refer to Note 6, Other Real Estate Owned and Repossessed Assets, for further detail. ASU No. 2016-01 - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01") ASU 2016-01 amended current guidance by: (i) requiring equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income, (ii) allowing an entity to measure equity investments that do not have readily determinable fair values at either fair value or cost minus impairment, changes in measurement is recognized in net income, (iii) simplifying impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iv) eliminating the requirement to disclose the methods and assumptions used to estimate the fair value of financial instruments measured at amortized cost; (v) requiring the use of exit price notion when measuring the fair value of financial instruments; (vi) requiring recognition of changes in the fair value related to instrument-specific credit risk in other comprehensive income if financial liabilities are measured at fair value, (vii) requiring separate presentation in financial statements by measurement category, and (viii) clarifying that an entity should evaluate the need for valuation allowance on deferred tax assets related to available-for-sale securities in combination with the entity’s other deferred tax assets. January 1, 2018 using a modified retrospective approach with the exception of disclosure requirements which are adopted on a prospective basis The Corporation identified available-for-sale investment securities qualifying as equity investments in the securities portfolio at January 1, 2018. The adoption resulted in recognizing the unrealized fair value related to the identified equity investments as a cumulative effect to retained earnings of $0.3 million. In addition, the Corporation has updated disclosures related to the fair value of financial instruments to the use of the exit price notion. Standard Description Adoption Date Effect on the financial statements ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts as Cash Payments ("ASU 2016-15") ASU 2016-15 was issued to reduce diversity in practice and prevent financial statement restatements by clarifying the presentation and classification of cash receipts and cash payments within the statement of cash flows. Cash flow issues include: debt prepayment or debt extinguishment costs, settlement of insurance claims, proceeds from the settlement of corporate-owned and bank-owned life insurance policies, distribution received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. January 1, 2018 using retrospective application The adoption did not have a material effect on the presentation of our Consolidated Statements of Cash Flows, as current policies are either already in-line with the clarifications in the updated guidance, or the related cash flows are not material. ASU No. 2017-07 - Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost ("ASU 2017-07") ASU 2017-07 improves the income statement presentation of net periodic benefit cost for an entity's pension and postretirement plans. The standard requires employers to disaggregate current service costs from other components of net benefit cost and present it with other compensation cost. Additionally net benefit cost becomes eligible for capitalization. January 1, 2018 using the retrospective transition method The adoption did not have a material effect on the Consolidated Statements of Income during the year ended December 31, 2018. ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvement to Account for Hedging Activities ("ASU 2017-12") ASU 2017-12 eliminates the separate measurement of hedge ineffectiveness as well as the benchmark interest rate concept when applying hedge risk to variable-rate instruments. It also allows a company to elect to perform subsequent effectiveness assessments qualitatively if the initial quantitative hedge effectiveness assessment is found to be highly effective. January 1, 2018 with a cumulative effect adjustment The early adoption resulted in a cumulative adjustment from opening retained earnings to accumulated other comprehensive income of $3 thousand, which represented all previously recognized hedge ineffectiveness. ASU No. 2018-15 - Intangible-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15") ASU 2018-15 clarifies the accounting treatment for implementation costs for hosting arrangements that are service contracts. The amendments in this update 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 in accordance with subtopic 350-40. Under this guidance costs for implementation activities during the development stage shall be capitalized. The said capitalized-costs shall be expensed over the term of the hosting arrangement. Third quarter of 2018 applied retrospectively The early adoption in the third quarter of 2018 did not have a material effect on the Consolidated Financial Statements. Standard Description Adoption Date Effect on the financial statements ASU No. 2016-02 - Leases (Topic 842) ASU No. 2018-10 - Codification Improvements to Topic 842, Leases ASU No. 2018-11 - Leases (Topic 842): Targeted Improvements ASU No. 2018-20 - Leases (Topic 842): Narrow Scope Improvements for Lessors ASU No. 2019-01 - Leases (Topic 842): Codification Improvements In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU), No. 2016-02, which requires lessees to recognize leases on-balance sheet, lessors to classify leases as sales-type, direct financing, or operating, and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; ASU No. 2018-11, Targeted Improvements; ASU No. 2018-20, Narrow Scope Improvements for Lessors; and ASU No. 2019-01, Leases (Topic 842): Codification Improvements. This guidance provides that lessees will be required to recognize the following for all operating leases (with the exception of short-term leases): 1) a lease liability, which is the present value of a lessee's obligation to make lease payments, and 2) a right-of-use (ROU) asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. Upon adoption, a modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. January 1, 2019 Upon adoption as of January 1, 2019, the Corporation elected certain practical expedients offered through the guidance, including foregoing the restatement of comparative periods, the use of hindsight, and the 'package of practical expedients' whereby it did not reassess (i) whether any expired or existing contracts contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. Effective during the six months ended 2019 , the Corporation also adopted the following standards, none of which had a material impact to the Corporation's financial statements or financial statement disclosures: Standard Effective Date 2017-06 Plan Accounting: Defined Benefit Pension Plans (Topic 960) January 1, 2019 2018-07 Compensation - Stock Compensation (Topic 718) January 1, 2019 2018-08 Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made January 1, 2019 2018-09 Codification Improvements January 1, 2019 2018-16 Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes January 1, 2019 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Adopted Accounting Principles | Standard Description Adoption Date Effect on the financial statements ASU No. 2014-09 - Revenue from Contracts with Customers (Topic 606) ASU No. 2016-08 - Principal versus Agent Considerations ASU No. 2016-10 - Identifying Performance Obligations and Licensing ASU No. 2016-12 - Narrow-scope Improvements and Practical Expedients ("Updates to Topic 606") The core principle of the Updates to Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is intended to clarify and converge the revenue recognition principles under GAAP and International Financial Reporting Standards and to streamline revenue recognition requirements in addition to expanding required revenue recognition disclosures. January 1, 2018 under the modified retrospective method A large majority of the Corporation's revenue is derived from net interest income, which is excluded from the scope of the guidance. Following detailed review of the Corporation's revenue streams not derived from net interest income on financial assets and liabilities, management identified the recognition of gains from other real estate sales financed by the Corporation to be in the scope of this amended guidance. Effective January 1, 2018, revenue for new seller financed other real estate owned sales is determined according to the Updates to Topic 606. If all qualifications are met, gains associated with the sales are recognized into income at the time of closing and therefore not deferred. The cumulative effect of the Updates to Topic 606 increased retained earnings by $1.2 million upon adoption. Additional required disclosures have been included in Note 15, Revenue from Contracts with Customers. The adoption is not expected to have a material impact on the Corporation's net income on an ongoing basis. Refer to Note 6, Other Real Estate Owned and Repossessed Assets, for further detail. ASU No. 2016-01 - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01") ASU 2016-01 amended current guidance by: (i) requiring equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income, (ii) allowing an entity to measure equity investments that do not have readily determinable fair values at either fair value or cost minus impairment, changes in measurement is recognized in net income, (iii) simplifying impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iv) eliminating the requirement to disclose the methods and assumptions used to estimate the fair value of financial instruments measured at amortized cost; (v) requiring the use of exit price notion when measuring the fair value of financial instruments; (vi) requiring recognition of changes in the fair value related to instrument-specific credit risk in other comprehensive income if financial liabilities are measured at fair value, (vii) requiring separate presentation in financial statements by measurement category, and (viii) clarifying that an entity should evaluate the need for valuation allowance on deferred tax assets related to available-for-sale securities in combination with the entity’s other deferred tax assets. January 1, 2018 using a modified retrospective approach with the exception of disclosure requirements which are adopted on a prospective basis The Corporation identified available-for-sale investment securities qualifying as equity investments in the securities portfolio at January 1, 2018. The adoption resulted in recognizing the unrealized fair value related to the identified equity investments as a cumulative effect to retained earnings of $0.3 million. In addition, the Corporation has updated disclosures related to the fair value of financial instruments to the use of the exit price notion. Standard Description Adoption Date Effect on the financial statements ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts as Cash Payments ("ASU 2016-15") ASU 2016-15 was issued to reduce diversity in practice and prevent financial statement restatements by clarifying the presentation and classification of cash receipts and cash payments within the statement of cash flows. Cash flow issues include: debt prepayment or debt extinguishment costs, settlement of insurance claims, proceeds from the settlement of corporate-owned and bank-owned life insurance policies, distribution received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. January 1, 2018 using retrospective application The adoption did not have a material effect on the presentation of our Consolidated Statements of Cash Flows, as current policies are either already in-line with the clarifications in the updated guidance, or the related cash flows are not material. ASU No. 2017-07 - Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost ("ASU 2017-07") ASU 2017-07 improves the income statement presentation of net periodic benefit cost for an entity's pension and postretirement plans. The standard requires employers to disaggregate current service costs from other components of net benefit cost and present it with other compensation cost. Additionally net benefit cost becomes eligible for capitalization. January 1, 2018 using the retrospective transition method The adoption did not have a material effect on the Consolidated Statements of Income during the year ended December 31, 2018. ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvement to Account for Hedging Activities ("ASU 2017-12") ASU 2017-12 eliminates the separate measurement of hedge ineffectiveness as well as the benchmark interest rate concept when applying hedge risk to variable-rate instruments. It also allows a company to elect to perform subsequent effectiveness assessments qualitatively if the initial quantitative hedge effectiveness assessment is found to be highly effective. January 1, 2018 with a cumulative effect adjustment The early adoption resulted in a cumulative adjustment from opening retained earnings to accumulated other comprehensive income of $3 thousand, which represented all previously recognized hedge ineffectiveness. ASU No. 2018-15 - Intangible-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15") ASU 2018-15 clarifies the accounting treatment for implementation costs for hosting arrangements that are service contracts. The amendments in this update 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 in accordance with subtopic 350-40. Under this guidance costs for implementation activities during the development stage shall be capitalized. The said capitalized-costs shall be expensed over the term of the hosting arrangement. Third quarter of 2018 applied retrospectively The early adoption in the third quarter of 2018 did not have a material effect on the Consolidated Financial Statements. Standard Description Adoption Date Effect on the financial statements ASU No. 2016-02 - Leases (Topic 842) ASU No. 2018-10 - Codification Improvements to Topic 842, Leases ASU No. 2018-11 - Leases (Topic 842): Targeted Improvements ASU No. 2018-20 - Leases (Topic 842): Narrow Scope Improvements for Lessors ASU No. 2019-01 - Leases (Topic 842): Codification Improvements In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU), No. 2016-02, which requires lessees to recognize leases on-balance sheet, lessors to classify leases as sales-type, direct financing, or operating, and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; ASU No. 2018-11, Targeted Improvements; ASU No. 2018-20, Narrow Scope Improvements for Lessors; and ASU No. 2019-01, Leases (Topic 842): Codification Improvements. This guidance provides that lessees will be required to recognize the following for all operating leases (with the exception of short-term leases): 1) a lease liability, which is the present value of a lessee's obligation to make lease payments, and 2) a right-of-use (ROU) asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. Upon adoption, a modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. January 1, 2019 Upon adoption as of January 1, 2019, the Corporation elected certain practical expedients offered through the guidance, including foregoing the restatement of comparative periods, the use of hindsight, and the 'package of practical expedients' whereby it did not reassess (i) whether any expired or existing contracts contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. Effective during the six months ended 2019 , the Corporation also adopted the following standards, none of which had a material impact to the Corporation's financial statements or financial statement disclosures: Standard Effective Date 2017-06 Plan Accounting: Defined Benefit Pension Plans (Topic 960) January 1, 2019 2018-07 Compensation - Stock Compensation (Topic 718) January 1, 2019 2018-08 Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made January 1, 2019 2018-09 Codification Improvements January 1, 2019 2018-16 Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes January 1, 2019 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of assets measured at fair value on a recurring basis | For assets and liabilities measured at fair value on a recurring basis, quantitative disclosures about the fair value measurements for each major category of assets and liabilities follow: (Dollars in thousands) Quoted Prices In Active Markets for Identical Assets Significant Other Significant Total June 30, 2019 Investment securities – carried at fair value: Government and government-sponsored enterprises $ — $ 295,726 $ — $ 295,726 State and political subdivisions — 444,085 — 444,085 Residential mortgage-backed securities — 353,622 — 353,622 Collateralized mortgage obligations — 1,939,695 — 1,939,695 Corporate bonds — 289,312 — 289,312 Trust preferred securities — 47,432 — 47,432 Total investment securities – carried at fair value — 3,369,872 — 3,369,872 Loans held-for-sale — 33,019 — 33,019 Loan servicing rights — — 60,658 60,658 Derivative assets: Customer-initiated derivatives — 69,024 — 69,024 Interest rate lock commitments — 2,687 — 2,687 Power Equity CD — 751 — 751 Risk management derivatives — 606 — 606 Total derivatives — 73,068 — 73,068 Total assets at fair value $ — $ 3,475,959 $ 60,658 $ 3,536,617 Derivative liabilities: Customer-initiated derivatives — 70,707 — 70,707 Forward contracts related to mortgage loans to be delivered for sale — 661 — 661 Power Equity CD — 751 — 751 Risk management derivatives — 25,060 — 25,060 Total derivatives — 97,179 — 97,179 Total liabilities at fair value $ — $ 97,179 $ — $ 97,179 (Dollars in thousands) Quoted Prices In Active Markets for Identical Assets Significant Other Significant Total December 31, 2018 Investment securities – carried at fair value: Government and government-sponsored enterprises $ — $ 351,700 $ — $ 351,700 State and political subdivisions — 516,286 — 516,286 Residential mortgage-backed securities — 213,428 — 213,428 Collateralized mortgage obligations — 1,601,298 — 1,601,298 Corporate bonds — 293,063 — 293,063 Trust preferred securities — 46,057 — 46,057 Total investment securities – carried at fair value — 3,021,832 — 3,021,832 Loans held-for-sale — 85,030 — 85,030 Loan servicing rights — — 71,013 71,013 Derivative assets: Customer-initiated derivatives — 26,680 — 26,680 Interest rate lock commitments — 1,049 — 1,049 Power Equity CD — 718 — 718 Risk management derivatives — 10,148 — 10,148 Total derivatives — 38,595 — 38,595 Total assets at fair value $ — $ 3,145,457 $ 71,013 $ 3,216,470 Derivative liabilities: Customer-initiated derivatives $ — $ 27,664 $ — $ 27,664 Forward contracts related to mortgage loans to be delivered for sale — 719 — 719 Power Equity CD — 718 — 718 Risk management derivatives — 3,278 — 3,278 Total derivatives — 32,379 — 32,379 Total liabilities at fair value $ — $ 32,379 $ — $ 32,379 |
Summary of changes in Level 3 assets measured at fair value on a recurring basis | The following table summarizes the changes in Level 3 assets measured at fair value on a recurring basis. Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Dollars in thousands) Loan servicing rights Balance, beginning of period $ 64,701 $ 68,837 $ 71,013 $ 63,841 Gains (losses): Recorded in earnings (realized): Recorded in "Net gain on sale of loans and other mortgage banking revenue" (6,152 ) (757 ) (14,597 ) 2,272 New originations 2,109 2,284 4,242 4,251 Balance, end of period $ 60,658 $ 70,364 $ 60,658 $ 70,364 |
Schedule of aggregate fair value contractual balance and gain (loss) for loans held-for-sale | The aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held-for-sale carried at fair value option was as follows: (Dollars in thousands) June 30, December 31, Aggregate fair value $ 33,019 $ 85,030 Contractual balance 31,799 82,080 Unrealized gain 1,220 2,950 |
Amount of gains (losses) from loans held for sale included in the Consolidated Statements of Income | The total amount of gains from loans held-for-sale included in the Consolidated Statements of Income was as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Interest income (1) $ 336 $ 445 $ 969 $ 821 Change in fair value (2) 345 484 (1,730 ) (216 ) Net gain on sales of loans (2) 5,388 4,023 11,538 5,531 Total included in earnings $ 6,069 $ 4,952 $ 10,777 $ 6,136 (1) Included in "Interest and fees on loans" in the Consolidated Statements of Income. (2) |
Summary of assets measured at fair value on a nonrecurring basis | For assets measured at fair value on a nonrecurring basis, quantitative disclosures about fair value measurements for each major category of assets follow: (Dollars in thousands) Significant Unobservable Inputs (Level 3) June 30, 2019 Impaired loans $ 76,186 Other real estate and repossessed assets 3,463 Total $ 79,649 December 31, 2018 Impaired loans $ 63,247 Other real estate and repossessed assets 883 Total $ 64,130 |
Additional information about significant unobservable inputs used in the fair value measurement of financial assets | The following table presents additional information about the significant unobservable inputs used in the fair value measurement of financial assets measured on a nonrecurring basis that were categorized within the Level 3 of the fair value hierarchy: (Dollars in thousands) Fair Value at Valuation Technique Significant Unobservable Inputs Range Impaired loans $ 76,186 Appraisal of collateral Discount for type of collateral and age of appraisal 20%-30% Other real estate and repossessed assets 3,463 Appraisal of property Discount for type of property and age of appraisal 20%-30% |
Summary of carrying amounts and estimated fair values of the financial instruments | A summary of carrying amounts and estimated fair values of the Corporation's financial instruments not recorded at fair value in their entirety on a recurring basis on the Consolidated Statements of Financial Position are disclosed in the table below. Level in Fair Value Measurement Hierarchy June 30, 2019 December 31, 2018 (Dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Investment securities: Held-to-maturity Level 2 $ 565,546 $ 575,042 $ 623,599 $ 618,232 Held-to-maturity Level 3 500 460 500 440 Net loans (1) Level 3 15,745,936 15,717,256 15,159,795 14,907,789 Financial liabilities: Time deposits Level 2 $ 4,360,014 $ 4,354,554 $ 4,074,248 $ 4,041,212 Collateralized customer deposits Level 2 291,671 291,513 382,687 382,370 Short-term borrowings Level 2 2,615,000 2,614,777 2,035,000 2,034,719 Long-term borrowings Level 2 426,069 431,043 426,002 423,258 (1) Included $76.2 million and $63.2 million of impaired loans recorded at fair value on a nonrecurring basis at June 30, 2019 and December 31, 2018 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | The following is a summary of the amortized cost and fair value of investment securities carried at fair value and investment securities held-to-maturity at June 30, 2019 and December 31, 2018 : Investment Securities Carried at Fair Value (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value June 30, 2019 Debt securities Government and government-sponsored enterprises $ 297,284 $ 378 $ 1,936 $ 295,726 State and political subdivisions 428,365 15,845 125 444,085 Residential mortgage-backed securities 351,790 2,807 975 353,622 Collateralized mortgage obligations 1,930,699 14,869 5,873 1,939,695 Corporate bonds 291,869 1,337 3,894 289,312 Trust preferred securities 47,672 502 742 47,432 Total $ 3,347,679 $ 35,738 $ 13,545 $ 3,369,872 December 31, 2018 Debt securities Government and government-sponsored enterprises $ 354,342 $ 713 $ 3,355 $ 351,700 State and political subdivisions 523,178 1,141 8,033 516,286 Residential mortgage-backed securities 216,990 261 3,823 213,428 Collateralized mortgage obligations 1,623,415 2,903 25,020 1,601,298 Corporate bonds 304,243 259 11,439 293,063 Trust preferred securities 47,477 324 1,744 46,057 Total $ 3,069,645 $ 5,601 $ 53,414 $ 3,021,832 |
Held-to-maturity Securities | Investment Securities Held-to-Maturity (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value June 30, 2019 State and political subdivisions $ 565,546 $ 10,576 $ 1,080 $ 575,042 Trust preferred securities 500 — 40 460 Total $ 566,046 $ 10,576 $ 1,120 $ 575,502 December 31, 2018 State and political subdivisions $ 623,599 $ 2,548 $ 7,915 $ 618,232 Trust preferred securities 500 — 60 440 Total $ 624,099 $ 2,548 $ 7,975 $ 618,672 |
Proceeds from sales of securities and the associated gains and losses recorded in earnings | Proceeds from sales of investment securities carried at fair value and the associated gains and losses recorded in earnings are listed below: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Proceeds $ 133,829 $ 4,215 $ 205,331 $ 4,215 Gross gains 4,180 42 4,732 42 Gross losses (20 ) (39 ) (485 ) (39 ) |
Amortized cost and fair value of debt securities by contractual maturity | The following is a summary of the amortized cost and fair value of investment securities at June 30, 2019 , by maturity, for both carried at fair value and held-to-maturity. The maturities of residential mortgage-backed securities and collateralized mortgage obligations are based on scheduled principal payments. The maturities of all other debt securities are based on final contractual maturity. June 30, 2019 (Dollars in thousands) Amortized Cost Fair Value Investment Securities Carried at Fair Value: Due in one year or less $ 779,977 $ 784,061 Due after one year through five years 1,292,316 1,297,464 Due after five years through ten years 812,375 809,765 Due after ten years 463,011 478,582 Total $ 3,347,679 $ 3,369,872 Investment Securities Held-to-Maturity: Due in one year or less $ 55,592 $ 55,657 Due after one year through five years 207,221 209,710 Due after five years through ten years 138,384 142,283 Due after ten years 164,849 167,852 Total $ 566,046 $ 575,502 |
Summary of continuous unrealized loss position of securities | The following schedule summarizes information for debt securities both carried at fair value and held-to-maturity with gross unrealized losses at June 30, 2019 and December 31, 2018 , aggregated by category and length of time that individual securities have been in a continuous unrealized loss position. As of June 30, 2019 , the Corporation's securities portfolio consisted of 1,912 securities, 512 of which were in an unrealized loss position. Less Than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2019 Government and government-sponsored enterprises $ 38,077 $ 74 $ 171,701 $ 1,862 $ 209,778 $ 1,936 State and political subdivisions 10,105 15 242,873 1,190 252,978 1,205 Residential mortgage-backed securities 14,778 17 102,387 958 117,165 975 Collateralized mortgage obligations 229,853 1,684 464,641 4,189 694,494 5,873 Corporate bonds 52,131 269 113,659 3,625 165,790 3,894 Trust preferred securities 24,902 600 2,712 182 27,614 782 Total $ 369,846 $ 2,659 $ 1,097,973 $ 12,006 $ 1,467,819 $ 14,665 December 31, 2018 Government and government-sponsored enterprises $ 167,164 $ 1,672 $ 62,200 $ 1,683 $ 229,364 $ 3,355 State and political subdivisions 190,551 1,932 657,327 14,016 847,878 15,948 Residential mortgage-backed securities 20,679 85 123,757 3,738 144,436 3,823 Collateralized mortgage obligations 496,356 5,268 656,208 19,752 1,152,564 25,020 Corporate bonds 169,431 5,888 103,688 5,551 273,119 11,439 Trust preferred securities 34,623 1,640 2,725 164 37,348 1,804 Total $ 1,078,804 $ 16,485 $ 1,605,905 $ 44,904 $ 2,684,709 $ 61,389 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Summary of loans under portfolio | A summary of the Corporation's loans follows: (Dollars in thousands) Originated Acquired (1) Total Loans June 30, 2019 Commercial loan portfolio: Commercial $ 3,752,528 $ 595,357 $ 4,347,885 Commercial real estate: Owner-occupied 1,528,802 495,759 2,024,561 Non-owner occupied 2,056,531 716,146 2,772,677 Vacant land 37,155 12,807 49,962 Total commercial real estate 3,622,488 1,224,712 4,847,200 Real estate construction and land development 671,773 28,997 700,770 Subtotal 8,046,789 1,849,066 9,895,855 Consumer loan portfolio: Residential mortgage 2,722,019 944,594 3,666,613 Consumer installment 1,497,467 55,368 1,552,835 Home equity 604,835 141,765 746,600 Subtotal 4,824,321 1,141,727 5,966,048 Total loans (2) $ 12,871,110 $ 2,990,793 $ 15,861,903 December 31, 2018 Commercial loan portfolio: Commercial $ 3,287,087 $ 715,481 $ 4,002,568 Commercial real estate: Owner-occupied 1,513,532 546,025 2,059,557 Non-owner occupied 1,966,330 818,690 2,785,020 Vacant land 40,295 27,215 67,510 Total commercial real estate 3,520,157 1,391,930 4,912,087 Real estate construction and land development 566,726 30,486 597,212 Subtotal 7,373,970 2,137,897 9,511,867 Consumer loan portfolio: Residential mortgage 2,407,305 1,051,361 3,458,666 Consumer installment 1,451,352 69,722 1,521,074 Home equity 612,129 166,043 778,172 Subtotal 4,470,786 1,287,126 5,757,912 Total loans (2) $ 11,844,756 $ 3,425,023 $ 15,269,779 (1) Loans acquired in the Talmer, Lake Michigan, Monarch, Northwestern and OAK acquisitions were elected to be accounted for under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30), by analogy. (2) Reported net of deferred costs totaling $27.2 million and $19.7 million at June 30, 2019 and December 31, 2018 , respectively. |
Schedule of activity for accretable yield | Activity for the accretable yield, which includes contractually due expected cash flows for acquired loans that have been renewed or extended since the date of acquisition and continue to be accounted for in loan pools in accordance with ASC 310-30, follows: (Dollars in thousands) Talmer Lake Michigan Monarch North-western OAK Total Three Months Ended June 30, 2019 Balance at beginning of period $ 469,713 $ 68,995 $ 16,967 $ 38,644 $ 8,345 $ 602,664 Accretion recognized in interest income (36,730 ) (5,291 ) (852 ) (3,214 ) (1,334 ) (47,421 ) Net reclassification (to) from nonaccretable difference (1) 730 409 750 745 913 3,547 Balance at end of period $ 433,713 $ 64,113 $ 16,865 $ 36,175 $ 7,924 $ 558,790 Three Months Ended June 30, 2018 Balance at beginning of period $ 685,830 $ 90,156 $ 21,154 $ 55,400 $ 16,158 $ 868,698 Accretion recognized in interest income (42,136 ) (6,302 ) (962 ) (4,618 ) (2,882 ) (56,900 ) Net reclassification (to) from nonaccretable difference (1) (27,526 ) (3,412 ) (61 ) (1,051 ) 1,016 (31,034 ) Balance at end of period $ 616,168 $ 80,442 $ 20,131 $ 49,731 $ 14,292 $ 780,764 Six Months Ended June 30, 2019 Balance at beginning of period $ 505,332 $ 73,132 $ 17,832 $ 41,455 $ 9,574 $ 647,325 Accretion recognized in interest income (74,761 ) (10,842 ) (1,626 ) (6,634 ) (2,703 ) (96,566 ) Net reclassification (to) from nonaccretable difference (1) 3,142 1,823 659 1,354 1,053 8,031 Balance at end of period $ 433,713 $ 64,113 $ 16,865 $ 36,175 $ 7,924 $ 558,790 Six Months Ended June 30, 2018 Balance at beginning of period $ 731,353 $ 95,124 $ 22,496 $ 60,814 $ 17,110 $ 926,897 Accretion recognized in interest income (84,776 ) (13,060 ) (2,118 ) (9,522 ) (5,985 ) (115,461 ) Net reclassification (to) from nonaccretable difference (1) (30,409 ) (1,622 ) (247 ) (1,561 ) 3,167 (30,672 ) Balance at end of period $ 616,168 $ 80,442 $ 20,131 $ 49,731 $ 14,292 $ 780,764 (1) The net reclassification results from changes in expected cash flows of the acquired loans which may include increases in the amount of contractual principal and interest expected to be collected due to improvement in credit quality, increases in balances outstanding from advances, renewals, extensions and interest rates; as well as reductions in contractual principal and interest expected to be collected due to credit deterioration, payoffs, and decreases in interest rates. |
Recorded investment of loans in the commercial loan portfolio by risk rating categories | The following schedule presents the recorded investment of loans in the commercial loan portfolio by credit risk categories at June 30, 2019 and December 31, 2018 : (Dollars in thousands) Pass Special Mention Substandard Doubtful Total June 30, 2019 Originated Portfolio: Commercial $ 3,513,993 $ 123,194 $ 108,373 $ 6,968 $ 3,752,528 Commercial real estate: Owner-occupied 1,452,031 25,913 50,697 161 1,528,802 Non-owner occupied 2,023,577 5,516 27,433 5 2,056,531 Vacant land 35,546 96 1,513 — 37,155 Total commercial real estate 3,511,154 31,525 79,643 166 3,622,488 Real estate construction and land development 664,122 3,612 4,039 — 671,773 Subtotal 7,689,269 158,331 192,055 7,134 8,046,789 Acquired Portfolio: Commercial 505,823 62,253 25,512 1,769 595,357 Commercial real estate: Owner-occupied 462,266 18,226 14,835 432 495,759 Non-owner occupied 655,602 43,147 17,382 15 716,146 Vacant land 12,614 193 — — 12,807 Total commercial real estate 1,130,482 61,566 32,217 447 1,224,712 Real estate construction and land development 28,715 42 240 — 28,997 Subtotal 1,665,020 123,861 57,969 2,216 1,849,066 Total $ 9,354,289 $ 282,192 $ 250,024 $ 9,350 $ 9,895,855 December 31, 2018 Originated Portfolio: Commercial $ 3,118,894 $ 87,222 $ 77,036 $ 3,935 $ 3,287,087 Commercial real estate: Owner-occupied 1,430,948 32,056 50,286 242 1,513,532 Non-owner occupied 1,901,822 39,416 25,092 — 1,966,330 Vacant land 36,499 — 3,741 55 40,295 Total commercial real estate 3,369,269 71,472 79,119 297 3,520,157 Real estate construction and land development 557,040 6,108 3,578 — 566,726 Subtotal 7,045,203 164,802 159,733 4,232 7,373,970 Acquired Portfolio: Commercial 655,883 36,809 22,773 16 715,481 Commercial real estate: Owner-occupied 500,072 28,909 17,033 11 546,025 Non-owner occupied 740,900 52,546 25,244 — 818,690 Vacant land 26,978 237 — — 27,215 Total commercial real estate 1,267,950 81,692 42,277 11 1,391,930 Real estate construction and land development 29,248 97 1,141 — 30,486 Subtotal 1,953,081 118,598 66,191 27 2,137,897 Total $ 8,998,284 $ 283,400 $ 225,924 $ 4,259 $ 9,511,867 |
Recorded investment of loans in the consumer loan portfolio based on the credit risk profile of loans in a performing and nonperforming status | The following schedule presents the recorded investment of loans in the consumer loan portfolio based on loans in a performing status and loans in a nonperforming status at June 30, 2019 and December 31, 2018 : (Dollars in thousands) Residential Mortgage Consumer Installment Home Equity Total Consumer June 30, 2019 Originated Loans: Performing $ 2,714,383 $ 1,496,056 $ 601,348 $ 4,811,787 Nonperforming 7,636 1,411 3,487 12,534 Subtotal 2,722,019 1,497,467 604,835 4,824,321 Acquired Loans 944,594 55,368 141,765 1,141,727 Total $ 3,666,613 $ 1,552,835 $ 746,600 $ 5,966,048 December 31, 2018 Originated Loans: Performing $ 2,399,317 $ 1,450,076 $ 608,525 $ 4,457,918 Nonperforming 7,988 1,276 3,604 12,868 Subtotal 2,407,305 1,451,352 612,129 4,470,786 Acquired Loans 1,051,361 69,722 166,043 1,287,126 Total $ 3,458,666 $ 1,521,074 $ 778,172 $ 5,757,912 |
Summary of nonperforming loans | A summary of nonperforming assets follows: (Dollars in thousands) June 30, December 31, Nonperforming assets Nonaccrual loans: Commercial $ 37,762 $ 30,139 Commercial real estate: Owner-occupied 20,814 16,056 Non-owner occupied 21,639 23,021 Vacant land 1,446 3,337 Total commercial real estate 43,899 42,414 Real estate construction and land development 3,501 12 Residential mortgage 7,636 7,988 Consumer installment 1,411 1,276 Home equity 3,487 3,604 Total nonaccrual loans 97,696 85,433 Other real estate owned and repossessed assets 8,267 6,256 Total nonperforming assets $ 105,963 $ 91,689 |
Schedule representing the aging status of the recorded investment in loans by classes | Loan delinquency, excluding acquired loans accounted for under ASC 310-30, was as follows: Loans Past Due and Still Accruing (Dollars in thousands) 30-89 days past due 90 days or more past due Total past due Nonaccrual Loans Current Total loans June 30, 2019 Originated Portfolio: Commercial $ 19,158 $ 146 $ 19,304 $ 37,762 $ 3,695,462 $ 3,752,528 Commercial real estate: Owner-occupied 3,368 — 3,368 20,814 1,504,620 1,528,802 Non-owner occupied 1,714 — 1,714 21,639 2,033,178 2,056,531 Vacant land 501 — 501 1,446 35,208 37,155 Total commercial real estate 5,583 — 5,583 43,899 3,573,006 3,622,488 Real estate construction and land development 538 — 538 3,501 667,734 671,773 Residential mortgage 6,183 — 6,183 7,636 2,708,200 2,722,019 Consumer installment 3,076 — 3,076 1,411 1,492,980 1,497,467 Home equity 2,557 — 2,557 3,487 598,791 604,835 Total $ 37,095 $ 146 $ 37,241 $ 97,696 $ 12,736,173 $ 12,871,110 December 31, 2018 Originated Portfolio: Commercial $ 16,835 $ — $ 16,835 $ 30,139 $ 3,240,113 $ 3,287,087 Commercial real estate: Owner-occupied 4,657 52 4,709 16,056 1,492,767 1,513,532 Non-owner occupied 1,793 887 2,680 23,021 1,940,629 1,966,330 Vacant land 160 — 160 3,337 36,798 40,295 Total commercial real estate 6,610 939 7,549 42,414 3,470,194 3,520,157 Real estate construction and land development 247 — 247 12 566,467 566,726 Residential mortgage 1,688 — 1,688 7,988 2,397,629 2,407,305 Consumer installment 4,731 — 4,731 1,276 1,445,345 1,451,352 Home equity 3,843 488 4,331 3,604 604,194 612,129 Total $ 33,954 $ 1,427 $ 35,381 $ 85,433 $ 11,723,942 $ 11,844,756 |
Schedule of Impaired loans by classes | The following schedules present impaired loans by classes of loans at June 30, 2019 and December 31, 2018 : (Dollars in thousands) Recorded investment Unpaid principal balance Related valuation allowance June 30, 2019 Impaired loans with a valuation allowance: Commercial $ 28,732 $ 31,556 $ 5,805 Commercial real estate: Owner-occupied 20,050 22,193 2,168 Non-owner occupied 18,080 19,966 1,366 Vacant land 786 1,003 59 Total commercial real estate 38,916 43,162 3,593 Real estate construction and land development 3,612 3,612 365 Residential mortgage 10,060 10,060 790 Consumer installment 1,594 1,594 109 Home equity 4,290 4,290 356 Subtotal 87,204 94,274 11,018 Impaired loans with no related valuation allowance: Commercial 28,775 29,586 — Commercial real estate: Owner-occupied 12,057 12,895 — Non-owner occupied 7,827 8,339 — Vacant land 776 1,704 — Total commercial real estate 20,660 22,938 — Real estate construction and land development 164 164 — Residential mortgage 7,235 7,235 — Consumer installment 7 7 — Home equity 1,656 1,656 — Subtotal 58,497 61,586 — Total impaired loans: Commercial 57,507 61,142 5,805 Commercial real estate: Owner-occupied 32,107 35,088 2,168 Non-owner occupied 25,907 28,305 1,366 Vacant land 1,562 2,707 59 Total commercial real estate 59,576 66,100 3,593 Real estate construction and land development 3,776 3,776 365 Residential mortgage 17,295 17,295 790 Consumer installment 1,601 1,601 109 Home equity 5,946 5,946 356 Total $ 145,701 $ 155,860 $ 11,018 (Dollars in thousands) Recorded Unpaid Related December 31, 2018 Impaired loans with a valuation allowance: Commercial $ 20,957 $ 23,781 $ 3,546 Commercial real estate: Owner-occupied 14,702 16,519 1,359 Non-owner occupied 16,833 17,452 462 Vacant land 1,008 1,208 96 Total commercial real estate 32,543 35,179 1,917 Real estate construction and land development 126 126 11 Residential mortgage 10,867 10,867 816 Consumer installment 1,126 1,126 186 Home equity 4,432 4,432 328 Subtotal 70,051 75,511 6,804 Impaired loans with no related valuation allowance: Commercial 25,093 25,934 — Commercial real estate: Owner-occupied 10,971 11,601 — Non-owner occupied 12,412 13,411 — Vacant land 2,825 3,911 — Total commercial real estate 26,208 28,923 — Real estate construction and land development 111 111 — Residential mortgage 7,537 7,537 — Consumer installment 377 377 — Home equity 1,496 1,496 — Subtotal 60,822 64,378 — Total impaired loans: Commercial 46,050 49,715 3,546 Commercial real estate: Owner-occupied 25,673 28,120 1,359 Non-owner occupied 29,245 30,863 462 Vacant land 3,833 5,119 96 Total commercial real estate 58,751 64,102 1,917 Real estate construction and land development 237 237 11 Residential mortgage 18,404 18,404 816 Consumer installment 1,503 1,503 186 Home equity 5,928 5,928 328 Total $ 130,873 $ 139,889 $ 6,804 |
Schedule presents information related to impaired loans | The following schedule presents additional information regarding impaired loans by classes of loans segregated by those requiring a valuation allowance and those not requiring a valuation allowance for the three and six months ended June 30, 2019 and 2018 , and the respective interest income amounts recognized: Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (Dollars in thousands) Average recorded investment Interest income recognized while on impaired status Average recorded investment Interest income recognized while on impaired status Average Interest income Average Interest income Impaired loans with a valuation allowance: Commercial $ 26,587 $ 93 $ 18,139 $ 111 $ 24,109 $ 179 $ 19,271 $ 276 Commercial real estate: Owner-occupied 17,515 130 12,949 81 17,522 255 13,510 163 Non-owner occupied 9,050 9 2,246 10 11,055 54 3,058 21 Vacant land 788 2 1,308 17 896 10 2,502 32 Total commercial real estate 27,353 141 16,503 108 29,473 319 19,070 216 Real estate construction and land development 3,730 2 243 2 3,174 4 234 4 Residential mortgage 10,011 97 12,762 115 10,005 198 13,183 232 Consumer installment 1,250 2 1,067 2 1,213 4 986 3 Home equity 3,830 24 2,812 21 3,739 46 3,253 38 Subtotal 72,761 359 51,526 359 $ 71,713 $ 750 $ 55,997 $ 769 Impaired loans with no related valuation allowance: Commercial 27,865 201 20,078 147 $ 27,510 $ 384 $ 19,102 $ 242 Commercial real estate: Owner-occupied 14,110 73 14,565 81 12,841 126 14,967 137 Non-owner occupied 16,677 58 9,539 38 16,073 105 8,349 103 Vacant land 1,140 — 3,440 — 1,787 — 2,604 — Total commercial real estate 31,927 131 27,544 119 30,701 231 25,920 240 Real estate construction and land development 102 2 1,994 2 76 4 1,051 3 Residential mortgage 7,241 29 7,075 25 7,488 57 6,606 48 Consumer installment 36 — 41 — 226 — 91 — Home equity 1,987 5 2,487 2 2,096 12 2,266 9 Subtotal 69,158 368 59,219 295 $ 68,097 $ 688 $ 55,036 $ 542 Total impaired loans: Commercial 54,452 294 38,217 258 $ 51,619 $ 563 $ 38,373 $ 518 Commercial real estate: Owner-occupied 31,625 203 27,514 162 30,363 381 28,477 300 Non-owner occupied 25,727 67 11,785 48 27,128 159 11,407 124 Vacant land 1,928 2 4,748 17 2,683 10 5,106 32 Total commercial real estate 59,280 272 44,047 227 60,174 550 44,990 456 Real estate construction and land development 3,832 4 2,237 4 3,250 8 1,285 7 Residential mortgage 17,252 126 19,837 140 17,493 255 19,789 280 Consumer installment 1,286 2 1,108 2 1,439 4 1,077 3 Home equity 5,817 29 5,299 23 5,835 58 5,519 47 Total $ 141,919 $ 727 $ 110,745 $ 654 $ 139,810 $ 1,438 $ 111,033 $ 1,311 |
Schedule providing information on TDRs | The following tables present the recorded investment of loans modified into TDRs during the three and six months ended June 30, 2019 and 2018 by type of concession granted. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession. Concession type (Dollars in thousands) Principal Principal Interest Forbearance Total Pre-modification recorded investment Post-modification recorded investment For the three months ended June 30, 2019 Commercial loan portfolio: Commercial $ 14 $ 12 $ 426 $ 3,351 13 $ 3,818 $ 3,803 Commercial real estate: Owner-occupied 156 — 268 — 4 436 424 Non-owner occupied — — 140 — 1 154 140 Vacant land — — — 244 1 269 244 Total commercial real estate 156 — 408 244 6 859 808 Total commercial 170 12 834 3,595 19 4,677 4,611 Consumer loan portfolio: Residential mortgage 81 — 330 — 4 422 411 Consumer installment 15 39 13 — 6 70 67 Home equity 167 19 168 — 8 371 354 Total consumer 263 58 511 — 18 863 832 Total loans $ 433 $ 70 $ 1,345 $ 3,595 37 $ 5,540 $ 5,443 For the six months ended June 30, 2019 Commercial loan portfolio: Commercial $ 388 $ 12 $ 867 $ 6,892 24 $ 8,386 $ 8,159 Commercial real estate: Owner-occupied 2,863 103 297 1,360 9 4,649 4,623 Non-owner occupied — — 140 — 1 154 140 Vacant land 22 — — 244 2 293 266 Total commercial real estate 2,885 103 437 1,604 12 5,096 5,029 Total Commercial 3,273 115 1,304 8,496 36 13,482 13,188 Consumer loan portfolio: Residential mortgage 248 75 330 — 6 679 653 Consumer installment 61 65 13 — 17 149 139 Home equity 275 19 168 — 11 482 462 Total Consumer 584 159 511 — 34 1,310 1,254 Total loans $ 3,857 $ 274 $ 1,815 $ 8,496 70 $ 14,792 $ 14,442 Concession type (Dollars in thousands) Principal Principal Interest Forbearance Total Pre-modification recorded investment Post-modification recorded investment For the three months ended June 30, 2018 Commercial loan portfolio: Commercial $ 740 $ — $ 218 $ — 13 $ 969 $ 958 Commercial real estate: Owner-occupied 370 — 162 31 6 575 563 Total commercial real estate 370 — 162 31 6 575 563 Total commercial 1,110 — 380 31 19 1,544 1,521 Consumer loan portfolio: Residential mortgage 131 40 39 — 3 215 210 Consumer installment 15 44 10 — 9 72 69 Home equity 81 — 87 — 4 171 168 Total consumer 227 84 136 — 16 458 447 Total loans $ 1,337 $ 84 $ 516 $ 31 35 $ 2,002 $ 1,968 For the six months ended June 30, 2018 Commercial loan portfolio: Commercial $ 1,643 $ — $ 1,283 $ 261 31 $ 3,204 $ 3,187 Commercial real estate: Owner-occupied 370 — 888 513 8 1,783 1,771 Non-owner occupied 68 — — — 1 74 68 Total commercial real estate 438 — 888 513 9 1,857 1,839 Total Commercial 2,081 — 2,171 774 40 5,061 5,026 Consumer loan portfolio: Residential mortgage 269 40 39 — 7 357 348 Consumer installment 86 67 38 — 25 200 191 Home equity 266 — 115 — 9 424 381 Total Consumer 621 107 192 — 41 981 920 Total loans $ 2,702 $ 107 $ 2,363 $ 774 81 $ 6,042 $ 5,946 The following schedule presents the Corporation's TDRs at June 30, 2019 and December 31, 2018 : (Dollars in thousands) Accruing TDRs Nonaccrual TDRs Total June 30, 2019 Commercial loan portfolio $ 35,549 $ 26,526 $ 62,075 Consumer loan portfolio 12,304 3,397 15,701 Total $ 47,853 $ 29,923 $ 77,776 December 31, 2018 Commercial loan portfolio $ 32,508 $ 24,343 $ 56,851 Consumer loan portfolio 13,072 3,732 16,804 Total $ 45,580 $ 28,075 $ 73,655 |
Troubled debt restructurings on financing receivables with defaults payment | The following schedule includes TDRs for which there was a payment default during the three and six months ended June 30, 2019 and 2018 , whereby the borrower was past due with respect to principal and/or interest for 90 days or more, and the loan became a TDR during the twelve-month period prior to the default: For The Three Months Ended June 30, 2019 2018 (Dollars in thousands) Number of loans Principal balance Number of loans Principal balance Commercial loan portfolio — $ — 2 $ 67 Consumer loan portfolio 2 29 7 42 Total 2 $ 29 9 $ 109 For The Six Months Ended June 30, 2019 2018 (Dollars in thousands) Number of loans Principal balance Number of loans Principal balance Commercial loan portfolio — $ — 3 $ 149 Consumer loan portfolio 2 29 8 45 Total 2 $ 29 11 $ 194 |
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | The following schedule presents, by loan portfolio segment, the changes in the allowance for the originated loan portfolio for the three and six months ended June 30, 2019 and 2018 . (Dollars in thousands) Commercial Loan Portfolio Consumer Loan Portfolio Total Originated Loan Portfolio Changes in allowance for loan losses for the three months ended June 30, 2019: Beginning balance $ 84,010 $ 26,274 $ 110,284 Provision for loan losses 4,848 2,654 7,502 Charge-offs (2,013 ) (1,611 ) (3,624 ) Recoveries 1,055 750 1,805 Ending balance $ 87,900 $ 28,067 $ 115,967 Changes in allowance for loan losses for the six months ended June 30, 2019: Beginning balance $ 82,759 $ 26,805 $ 109,564 Provision for loan losses 6,712 3,269 9,981 Charge-offs (3,447 ) (3,382 ) (6,829 ) Recoveries 1,876 1,375 3,251 Ending balance $ 87,900 $ 28,067 $ 115,967 Changes in allowance for loan losses for the three months ended June 30, 2018: Beginning balance $ 67,744 $ 27,018 $ 94,762 Provision for loan losses 7,923 1,649 9,572 Charge-offs (3,890 ) (1,836 ) (5,726 ) Recoveries 888 519 1,407 Ending balance $ 72,665 $ 27,350 $ 100,015 Changes in allowance for loan losses for the six months ended June 30, 2018: Beginning balance $ 66,133 $ 25,754 $ 91,887 Provision for loan losses 11,323 4,505 15,828 Charge-offs (6,484 ) (4,066 ) (10,550 ) Recoveries 1,693 1,157 2,850 Ending balance $ 72,665 $ 27,350 $ 100,015 The following schedule presents, by loan portfolio, the changes in the allowance for the acquired loan portfolio. (Dollars in thousands) Commercial Consumer Total Acquired Loan Portfolio Changes in allowance for loan losses for the three months ended June 30, 2019: Beginning balance $ — $ — $ — Provision for loan losses — — — Charge-offs — — — Recoveries — — — Ending balance $ — $ — $ — Changes in allowance for loan losses for the six months ended June 30, 2019: Beginning balance $ 420 $ — $ 420 Provision for loan losses (420 ) — (420 ) Charge-offs — — — Recoveries — — — Ending balance $ — $ — $ — The following schedule presents by loan portfolio segment, details regarding the balance in the allowance and the recorded investment in loans at June 30, 2019 and December 31, 2018 by impairment evaluation method. (Dollars in thousands) Commercial Consumer Total Allowance for loan losses balance at June 30, 2019 attributable to: Loans individually evaluated for impairment $ 9,763 $ 1,255 $ 11,018 Loans collectively evaluated for impairment 78,137 26,812 104,949 Loans accounted for under ASC 310-30 — — — Total $ 87,900 $ 28,067 $ 115,967 Recorded investment (loan balance) at June 30, 2019: Loans individually evaluated for impairment $ 120,859 $ 24,842 $ 145,701 Loans collectively evaluated for impairment 7,925,930 4,799,479 12,725,409 Loans accounted for under ASC 310-30 1,849,066 1,141,727 2,990,793 Total $ 9,895,855 $ 5,966,048 $ 15,861,903 (Dollars in thousands) Commercial Loan Portfolio Consumer Loan Portfolio Total Allowance for loan losses balance at December 31, 2018 attributable to: Loans individually evaluated for impairment $ 5,474 $ 1,330 $ 6,804 Loans collectively evaluated for impairment 77,285 25,475 102,760 Loans acquired with deteriorated credit quality 420 — 420 Total $ 83,179 $ 26,805 $ 109,984 Recorded investment (loan balance) at December 31, 2018: Loans individually evaluated for impairment $ 105,038 $ 25,835 $ 130,873 Loans collectively evaluated for impairment 7,268,932 4,444,951 11,713,883 Loans acquired with deteriorated credit quality 2,137,897 1,287,126 3,425,023 Total $ 9,511,867 $ 5,757,912 $ 15,269,779 |
Other Real Estate Owned and R_2
Other Real Estate Owned and Repossessed Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Real Estate [Abstract] | |
Tabular disclosure of the changes in non-covered and covered other real estate on properties owned | Changes in other real estate owned and repossessed assets, included in interest receivable and other assets on the Consolidated Statements of Financial Position, were as follows: (Dollars in thousands) Other real estate Repossessed Balance at January 1, 2019 $ 5,832 $ 424 Additions (1) 5,420 1,309 Net payments received (214 ) — Disposals (2,372 ) (1,403 ) Write-downs (729 ) — Balance at June 30, 2019 $ 7,937 $ 330 Balance at January 1, 2018 $ 8,182 $ 625 Transfers based on adoption of ASU 2014-09 (2) (189 ) — Additions (1) 2,448 2,645 Net payments received (139 ) — Disposals (4,642 ) (2,319 ) Write-downs (783 ) — Balance at June 30, 2018 $ 4,877 $ 951 (1) Includes loans transferred to other real estate owned and other repossessed assets. (2) In accordance with the updates to Topic 606 adopted by the Corporation effective January 1, 2018, $1.1 million of other real estate owned sold with seller financing were reclassified on the Consolidated Statements of Financial Position to loans and the related $0.9 million of deferred gains were recognized in income as an adjustment to opening retained earnings. Refer to Note 1, Basis of Presentation and Significant Accounting Policies, for further information. |
Schedule of income and expenses related to other real estate owned | Income and expenses related to other real estate owned and repossessed assets, recorded as a component of "Other" operating expenses in the Consolidated Statements of Income, were as follows: (Dollars in thousands) Other real estate owned Repossessed assets For the three months ended June 30, 2019 Net gain (loss) on sale $ 824 $ (14 ) Write-downs (435 ) — Net operating expenses (248 ) (2 ) Total $ 141 $ (16 ) For the six months ended June 30, 2019 Net gain (loss) on sale $ 1,568 $ (32 ) Write-downs (729 ) — Net operating expenses (555 ) (5 ) Total $ 284 $ (37 ) For the three months ended June 30, 2018 Net gain (loss) on sale $ 23 $ (60 ) Write-downs (132 ) — Net operating expenses (318 ) (2 ) Total $ (427 ) $ (62 ) For the six months ended June 30, 2018 Net gain (loss) on sale $ 779 $ (94 ) Write-downs (783 ) — Net operating expenses (715 ) (3 ) Total $ (719 ) $ (97 ) |
Loan Servicing Rights (Tables)
Loan Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Schedule of activity for loan servicing rights and the related fair value changes | The following table represents the activity for LSRs and the related fair value changes: (Dollars in thousands) Commercial Real Estate Mortgage Total For the three months ended June 30, 2019 Fair value, beginning of period $ 559 $ 64,142 $ 64,701 Additions from loans sold with servicing retained — 2,109 2,109 Changes in fair value due to: Reductions from pay-offs, pay downs and run-off (34 ) (661 ) (695 ) Changes in estimates of fair value (1) — (5,457 ) (5,457 ) Fair value, end of period $ 525 $ 60,133 $ 60,658 For the six months ended June 30, 2019 Fair value, beginning of period $ 451 $ 70,562 $ 71,013 Additions from loans sold with servicing retained 138 4,104 4,242 Changes in fair value due to: 0 0 Reductions from pay-offs, pay downs and run-off (64 ) (1,430 ) (1,494 ) Changes in estimates of fair value (1) — (13,103 ) (13,103 ) Fair value, end of period $ 525 $ 60,133 $ 60,658 Principal balance of loans serviced $ 43,657 $ 6,731,556 $ 6,775,213 For the three months ended June 30, 2018 Fair value, beginning of period $ 441 $ 68,396 $ 68,837 Additions from loans sold with servicing retained 45 2,239 2,284 Changes in fair value due to: 0 Reductions from pay-offs, pay downs and run-off (29 ) (698 ) (727 ) Changes in estimates of fair value (1) — (30 ) (30 ) Fair value, end of period $ 457 $ 69,907 $ 70,364 For the six months ended June 30, 2018 Fair value, beginning of period $ 427 $ 63,414 $ 63,841 Additions from loans sold with servicing retained 88 4,163 4,251 Changes in fair value due to: Reductions from pay-offs, pay downs and run-off (58 ) (1,392 ) (1,450 ) Change in estimates of fair value (1) — 3,722 3,722 Fair value, end of period $ 457 $ 69,907 $ 70,364 Principal balance of loans serviced $ 42,490 $ 6,946,356 $ 6,988,846 (1) Represents estimated LSR value change resulting primarily from market-driven changes in interest rates and prepayments. Included in "Net gain on sale of loans and other mortgage banking revenue" in the Consolidated Statements of Income. |
Schedule of assumptions included in loan servicing rights | The following table presents assumptions utilized in determining the fair value of loan servicing rights as of June 30, 2019 and December 31, 2018 . Mortgage As of June 30, 2019 Prepayment speed 6.0 - 29.72 Weighted average ("WA") discount rate 10.1 % WA cost to service/per year $ 66 WA ancillary income/per year $ 31 WA float range 2.4 % As of December 31, 2018 Prepayment speed 0.0 - 26.4% WA discount rate 10.1 % WA cost to service/per year $ 66 WA ancillary income/per year $ 31 WA float range 2.5 % |
Core Deposit Intangibles (Table
Core Deposit Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying amount, accumulated amortization and amortization expense of core deposit intangible assets | The following table sets forth the carrying amount and accumulated amortization of core deposit intangible assets that are amortizable and arose from business combinations or other acquisitions: (Dollars in thousands) June 30, December 31, Gross original amount $ 56,456 $ 56,456 Accumulated amortization 30,621 27,900 Net carrying amount $ 25,835 $ 28,556 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense on core deposit intangible assets for periods ending after June 30, 2019 is as follows: (Dollars in thousands) Estimated amortization expense 2019 2,722 2020 4,851 2021 4,471 2022 4,218 2023 3,591 2024 and thereafter 5,982 |
Derivative Instruments and Ba_2
Derivative Instruments and Balance Sheet Offsetting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule reflecting the amount and fair value of risk management derivatives and mortgage banking and customer initiated derivatives | The following table presents the notional amount and fair value of the Corporation’s derivative instruments held or issued in connection with customer-initiated and mortgage banking activities. June 30, 2019 December 31, 2018 Fair Value Fair Value (Dollars in thousands) Notional Amount (1) Gross Derivative Assets (2) Gross Derivative Liabilities (2) Notional Amount (1) Gross Derivative Assets (2) Gross Derivative Liabilities (2) Risk management purposes: Derivatives designated as hedging instruments: Interest rate swaps $ 1,145,000 $ 606 $ 25,060 $ 820,000 $ 10,148 $ 3,278 Total risk management purposes 1,145,000 606 25,060 820,000 10,148 3,278 Customer-initiated and mortgage banking derivatives: Customer-initiated derivatives 2,908,127 69,024 70,707 2,477,640 26,680 27,664 Forward contracts related to mortgage loans to be delivered for sale 165,772 — 661 127,159 — 719 Interest rate lock commitments 149,084 2,687 — 54,848 1,049 — Power Equity CD 35,295 751 751 36,771 718 718 Total customer-initiated and mortgage banking derivatives 3,258,278 72,462 72,119 2,696,418 28,447 29,101 Total gross derivatives $ 4,403,278 $ 73,068 $ 97,179 $ 3,516,418 $ 38,595 $ 32,379 (1) Notional or contract amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the Consolidated Statements of Financial Position. (2) Derivative assets are included within "Interest receivable and other assets" and derivative liabilities are included within "Interest payable and other liabilities" on the Consolidated Statements of Financial Position. Included in the fair value of the derivative assets are credit valuation adjustments for counterparty credit risk totaling $1.5 million at June 30, 2019 and $901 thousand at December 31, 2018 . |
Schedule reflecting the net gains (losses) relating to derivative instruments related to the changes in fair value | The following table presents the net gains (losses) related to derivative instruments reflecting the changes in fair value. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) Location of Gain (Loss) 2019 2018 2019 2018 Forward contracts related to mortgage loans to be delivered for sale Net gain on sale of loans and other mortgage banking revenue $ (8 ) $ (21 ) $ 58 $ (391 ) Interest rate lock commitments Net gain on sale of loans and other mortgage banking revenue 929 211 1,638 763 Power Equity CD Other noninterest income — — — — Customer-initiated derivatives Other noninterest income (409 ) 39 (699 ) 366 Total gain (loss) recognized in income $ 512 $ 229 $ 997 $ 738 The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income relating to interest rate swaps designated as cash flow hedges for the three and six months ended June 30, 2019 and 2018 . (Dollars in thousands) Amount of gain (loss) recognized in other comprehensive income Amount of gain (loss) reclassified from other comprehensive income to interest income or expense Three Months Ended June 30, 2019 Interest rate swaps designated as cash flow hedges $ (21,229 ) $ 1,256 Three Months Ended June 30, 2018 Interest rate swaps designated as cash flow hedges 4,102 589 Six Months Ended June 30, 2019 Interest rate swaps designated as cash flow hedges $ (28,781 ) $ 2,544 Six Months Ended June 30, 2018 Interest rate swaps designated as cash flow hedges 12,065 347 |
Schedule of the Company's financial instruments eligible for offset, offsetting assets | The tables below present information about the Corporation’s financial instruments that are eligible for offset. Gross amounts not offset in the statements of financial position (Dollars in thousands) Gross Gross amounts offset in the statements of financial condition Net amounts presented in the statements of financial position Financial Collateral Net June 30, 2019 Offsetting derivative assets Derivative assets (1) $ 69,553 $ — $ 69,553 $ — $ — $ 69,553 Offsetting derivative liabilities Derivative liabilities (1) 95,492 — 95,492 — 37,291 58,201 December 31, 2018 Offsetting derivative assets Derivative assets (1) $ 36,791 $ — $ 36,791 $ — $ (16,120 ) $ 20,671 Offsetting derivative liabilities Derivative liabilities 30,822 — 30,822 — 430 30,392 (1) Amount does not include participated interest rate swaps, forward contracts, interest rate lock commitments and power equity CDs as these instruments are not subject to master netting or similar arrangements. |
Schedule of the Company's financial instruments eligible for offset, offsetting liabilities | The tables below present information about the Corporation’s financial instruments that are eligible for offset. Gross amounts not offset in the statements of financial position (Dollars in thousands) Gross Gross amounts offset in the statements of financial condition Net amounts presented in the statements of financial position Financial Collateral Net June 30, 2019 Offsetting derivative assets Derivative assets (1) $ 69,553 $ — $ 69,553 $ — $ — $ 69,553 Offsetting derivative liabilities Derivative liabilities (1) 95,492 — 95,492 — 37,291 58,201 December 31, 2018 Offsetting derivative assets Derivative assets (1) $ 36,791 $ — $ 36,791 $ — $ (16,120 ) $ 20,671 Offsetting derivative liabilities Derivative liabilities 30,822 — 30,822 — 430 30,392 (1) Amount does not include participated interest rate swaps, forward contracts, interest rate lock commitments and power equity CDs as these instruments are not subject to master netting or similar arrangements. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Lease, Disclosure | The following table presents balances and assumptions utilized in determining the right to use asset and lease liability for operating leases as of June 30, 2019 : June 30, 2019 Weighted-average remaining lease terms (in years) 7.85 Weighted-average discount rate 3.1 % |
Lease, Cost | The components of net operating lease cost were as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2019 Operating lease cost $ 2,050 3,964 Variable lease cost (1) 247 454 Sublease income (56 ) (111 ) Total lease cost (2) $ 2,241 $ 4,307 (1) Represents non-lease components such as common area maintenance, taxes, insurance and utilities. (2) Included within "Occupancy" expense in the Consolidated Statements of Income. |
Lessee, Operating Lease, Liability, Maturity | Maturities of operating lease liability due under these lease arrangements as of June 30, 2019 are as follows: (Dollars in thousands) Operating Leases Remainder of 2019 $ 4,081 2020 7,490 2021 7,083 2022 6,149 2023 5,017 Thereafter 17,041 Total $ 46,861 Less: Present value discount 5,458 Lease liability $ 41,403 |
Operating Lease, Lease Income | The components of operating lease income were as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2019 Lease income - operating leases $ 169 363 Total lease income (1) $ 169 $ 363 (1) Included within "Other" noninterest income in the Consolidated Statements of Income. |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of the reserve for unfunded commitments | A summary of the reserve for representations and warranties of the Corporation is as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Reserve balance at beginning of period $ 3,983 $ 5,105 $ 4,084 $ 5,349 Reserve reduction (807 ) (243 ) (908 ) (487 ) Charge-offs — (2 ) — (2 ) Ending reserve balance $ 3,176 $ 4,860 $ 3,176 $ 4,860 (Dollars in thousands) June 30, 2019 December 31, 2018 Reserve balance Liability for specific claims $ 454 $ 398 General allowance 2,722 3,686 Total reserve balance $ 3,176 $ 4,084 |
Borrowings and Other Short-Te_2
Borrowings and Other Short-Term Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Other Borrowings | A summary of the Corporation's short- and long-term borrowings, and other short-term liabilities follows: June 30, 2019 December 31, 2018 (Dollars in thousands) Amount Weighted Average Rate (1) Amount Weighted Average Rate (1) Short-term borrowings: FHLB advances: 2.29% - 2.60% fixed-rate notes $ 2,580,000 2.44 % $ 2,035,000 2.47 % AFX short-term borrowings 35,000 2.41 — — Total short-term borrowings $ 2,615,000 2.44 % $ 2,035,000 2.47 % Long-term borrowings: FHLB advances: 1.00% - 2.72% fixed-rate notes due 2019 to 2025 (2) $ 410,073 2.00 % $ 410,102 2.00 % Subordinated debt obligations: floating-rate based on three-month LIBOR plus 1.45% - 2.85% due 2034 to 2035 (3) 11,648 4.71 11,572 4.85 Subordinated debt obligations: floating-rate based on three-month LIBOR plus 3.25% due in 2032 (4) 4,348 5.84 4,328 5.65 Total long-term borrowings 426,069 2.11 426,002 2.11 Total borrowings $ 3,041,069 2.39 % $ 2,461,002 2.41 % Other short-term liabilities: Collateralized customer deposits $ 291,671 0.70 % $ 382,687 0.75 % (1) Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. (2) The June 30, 2019 balances include advances payable of $410.0 million and purchase accounting premiums of $73 thousand . The December 31, 2018 balance includes advances payable of $410.0 million and purchase accounting premiums of $102 thousand . (3) The June 30, 2019 balance includes advances payable of $15.0 million and purchase accounting discounts of $3.4 million . The December 31, 2018 balance includes advances payable of $15.0 million and purchase accounting discounts of $3.4 million . (4) The June 30, 2019 balance includes advances payable of $5.0 million and purchase accounting discounts of $652 thousand . The December 31, 2018 balance includes advances payable of $5.0 million and purchase accounting discounts of $672 thousand . |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Segregation of Noninterest Income | The following table presents total noninterest income segregated between contracts with customers within the scope of ASC 606 and those within the scope of other GAAP Topics. The following additionally presents revenues from customers and non-customers that are included within noninterest expense. Three Months Ended Six Months Ended (Dollars in thousands) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Noninterest income Service charges and fees on deposit accounts $ 2,986 $ 4,462 $ 5,983 $ 8,925 Wealth management revenue 1,321 1,268 2,621 2,052 Other charges and fees for customer services 1,244 1,389 2,461 3,787 Noninterest income from contracts with customers within the scope of ASC 606 5,551 7,119 11,065 14,764 Noninterest income within the scope of other GAAP topics 32,613 30,899 51,956 63,808 Total noninterest income $ 38,164 $ 38,018 $ 63,021 $ 78,572 Noninterest expense Other $ (810 ) $ 38 $ (1,536 ) $ (684 ) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of activity for Corporation's stock options | A summary of activity for the Corporation's stock options as of and for the six months ended June 30, 2019 is presented below: Non-Vested Stock Options Outstanding Stock Options Outstanding Number of Options Weighted- Average Exercise Price Per Share Weighted- Average Grant Date Fair Value Per Share Number of Options Weighted- Average Exercise Price Per Share Outstanding at December 31, 2018 221,658 $ 38.37 $ 7.16 777,443 $ 31.42 Exercised — — — (97,284 ) 29.69 Vested (65,104 ) 37.24 6.98 — — Forfeited/expired (28,566 ) 36.40 6.82 (31,874 ) 36.40 Outstanding at June 30, 2019 127,988 $ 39.38 $ 7.33 648,285 $ 31.43 Exercisable/vested at June 30, 2019 520,297 $ 29.48 |
Summary of activity for restricted stock units and awards | A summary of the activity for RSUs as of and for the six months ended June 30, 2019 is presented below: Number of Units Weighted-average grant date fair value per unit Outstanding at December 31, 2018 576,490 $ 49.35 Granted 379,260 44.95 Converted into shares of common stock (123,686 ) 38.83 Forfeited/expired (21,406 ) 50.03 Outstanding at June 30, 2019 810,658 $ 48.88 The following table provides information regarding restricted stock awards. All restricted stock awards fully vested during the six months ended June 30, 2019 . Nonvested restricted stock awards Number of Awards Weighted-average acquisition-date Nonvested at January 1, 2019 40,852 $ 46.23 Vested (40,852 ) 46.23 Nonvested at June 30, 2019 — $ — |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost (income) for the Corporation's qualified and nonqualified pension plans and nonqualified postretirement benefits plan | The components of net periodic benefit cost for the Corporation’s qualified and nonqualified pension plans and nonqualified postretirement benefit plan are as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Defined Benefit Pension Plans Interest cost $ 1,172 $ 1,092 $ 2,345 $ 2,184 Expected return on plan assets (2,190 ) (2,220 ) (4,381 ) (4,439 ) Amortization of unrecognized net loss 141 178 281 355 Net periodic benefit cost (income) (1) $ (877 ) $ (950 ) $ (1,755 ) $ (1,900 ) Postretirement Benefit Plan Service cost (2) $ — $ 1 $ 1 $ 1 Interest cost 21 20 43 41 Amortization of unrecognized net gain (45 ) (36 ) (90 ) (71 ) Net periodic benefit cost (income) (1) $ (24 ) $ (15 ) $ (46 ) $ (29 ) (1) Net periodic benefit cost (income), excluding service cost is included "Other" operating expenses on the Consolidated Statements of Income. (2) Service cost is included in "Salaries, wages and employee benefits expense" on the Consolidated Statements of Income. |
Regulatory Capital and Reserv_2
Regulatory Capital and Reserve Requirements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Corporation's and Chemical Bank's actual capital amounts and ratios with the quantitative measures established by regulation to ensure capital adequacy | The summary below compares the actual capital amounts and ratios with the quantitative measures established by regulation to ensure capital adequacy: Actual Minimum Required for Capital Adequacy Purposes Including Capital Conservation Buffer Required to be Well Capitalized Under Prompt Corrective Action Regulations (Dollars in thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio June 30, 2019 Total Capital to Risk-Weighted Assets Corporation $ 1,951,444 11.5 % $ 1,787,527 10.5 % N/A N/A Chemical Bank 1,928,735 11.3 1,784,388 10.5 $ 1,699,417 10.0 % Tier 1 Capital to Risk-Weighted Assets Corporation 1,813,446 10.7 1,447,046 8.5 N/A N/A Chemical Bank 1,806,734 10.6 1,444,504 8.5 1,359,534 8.0 Common Equity Tier 1 Capital to Risk-Weighted Assets Corporation 1,813,446 10.7 1,191,685 7.0 N/A N/A Chemical Bank 1,806,734 10.6 1,189,592 7.0 1,104,621 6.5 Leverage Ratio Corporation 1,813,446 8.7 833,418 4.0 N/A N/A Chemical Bank 1,806,734 8.7 832,372 4.0 1,040,465 5.0 December 31, 2018 Total Capital to Risk-Weighted Assets Corporation $ 1,855,922 11.5 % $ 1,590,323 9.9 % N/A N/A Chemical Bank 1,825,742 11.4 1,586,719 9.9 $ 1,606,804 10.0 % Tier 1 Capital to Risk-Weighted Assets Corporation 1,723,004 10.7 1,268,232 7.9 N/A N/A Chemical Bank 1,708,724 10.6 1,265,358 7.9 1,285,444 8.0 Common Equity Tier 1 Capital to Risk-Weighted Asset Corporation 1,723,004 10.7 1,026,664 6.4 N/A N/A Chemical Bank 1,708,724 10.6 1,024,338 6.4 1,044,423 6.5 Leverage Ratio Corporation 1,723,004 8.7 793,669 4.0 N/A N/A Chemical Bank 1,708,724 8.6 792,184 4.0 990,230 5.0 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Numerator and denominator of the basic and diluted earnings per common share computations | The factors used in the earnings per share computation follow: Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2019 2018 2019 2018 Net income $ 69,594 $ 68,988 $ 132,536 $ 140,584 Net income allocated to participating securities — 40 24 105 Net income allocated to common shareholders (1) $ 69,594 $ 68,948 $ 132,512 $ 140,479 Weighted average common shares - issued 71,554 71,371 71,526 71,334 Average unvested restricted share awards — (42 ) (12 ) (54 ) Weighted average common shares outstanding - basic 71,554 71,329 71,514 71,280 Effect of dilutive securities Weighted average common stock equivalents 718 697 693 686 Weighted average common shares outstanding - diluted 72,272 72,026 72,207 71,966 EPS available to common shareholders Basic earnings per common share $ 0.97 $ 0.97 $ 1.85 $ 1.97 Diluted earnings per common share $ 0.96 $ 0.96 $ 1.84 $ 1.95 (1) Net income allocated to common shareholders for basic and diluted earnings per share may differ under the two-class method as a result of adding common share equivalents for options to dilutive shares outstanding, which alters the ratio used to allocate net income to common shareholders and participating securities for the purposes of calculating diluted earnings per share. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Components of accumulated other comprehensive loss, net of related tax benefit/expense | The following table summarizes the changes within each component of accumulated other comprehensive income (loss), net of related tax benefit/expense for the three and six months ended June 30, 2019 , and 2018 : (Dollars in thousands) Unrealized gains (losses) on securities carried at fair value, net of tax Defined Benefit Pension Plan, net of tax Unrealized gains (losses) on cash flow hedges, net of tax Total For the three months ended June 30, 2019 Beginning balance at April 1, 2019 $ (8,260 ) $ (28,691 ) $ (1,556 ) $ (38,507 ) Other comprehensive income (loss) before reclassifications 29,079 — (16,771 ) 12,308 Amounts reclassified from accumulated other comprehensive income (loss) (3,286 ) 76 (992 ) (4,202 ) Net current period other comprehensive income (loss) 25,793 76 (17,763 ) 8,106 Ending balance $ 17,533 $ (28,615 ) $ (19,319 ) $ (30,401 ) For the three months ended June 30, 2018 Beginning balance at April 1, 2018 $ (32,501 ) $ (19,696 ) $ 11,143 $ (41,054 ) Other comprehensive income (loss) before reclassifications (9,182 ) — 3,240 (5,942 ) Amounts reclassified from accumulated other comprehensive income (loss) (2 ) 112 (465 ) (355 ) Net current period other comprehensive income (loss) (9,184 ) 112 2,775 (6,297 ) Ending balance $ (41,685 ) $ (19,584 ) $ 13,918 $ (47,351 ) For the six months ended June 30, 2019 Beginning balance at January 1, 2019 $ (37,772 ) $ (28,766 ) $ 5,428 $ (61,110 ) Other comprehensive income (loss) before reclassifications 58,660 — (22,737 ) 35,923 Amounts reclassified from accumulated other comprehensive income (loss) (3,355 ) 151 (2,010 ) (5,214 ) Net current period other comprehensive income (loss) 55,305 151 (24,747 ) 30,709 Ending balance $ 17,533 $ (28,615 ) $ (19,319 ) $ (30,401 ) For the six months ended June 30, 2018 Beginning balance at December 31, 2017 $ (10,348 ) $ (19,808 ) $ 4,658 $ (25,498 ) Cumulative effect adjustment of change in accounting policy, net of tax impact (1) $ (344 ) $ — $ 3 (341 ) Beginning balance at January 1, 2018 (10,692 ) (19,808 ) 4,661 (25,839 ) Other comprehensive income (loss) before reclassifications (30,991 ) — 9,531 (21,460 ) Amounts reclassified from accumulated other comprehensive income (loss) (2 ) 224 (274 ) (52 ) Net current period other comprehensive income (loss) (30,993 ) 224 9,257 (21,512 ) Ending balance $ (41,685 ) $ (19,584 ) $ 13,918 $ (47,351 ) (1) Refer to Note 1 , Basis of Presentation and Significant Accounting Policies for further details on the adoption of ASU 2016-01 and ASU 2017-12. |
Summary of amounts reclassified out of accumulated other comprehensive income (loss) | The following table summarizes the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2019 , and 2018 : (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Income Statement Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Gains and losses on investment securities carried at fair value $ 4,160 $ 3 $ 4,247 $ 3 Net gain on sale of investment securities (noninterest income) (874 ) (1 ) (892 ) (1 ) Income tax expense $ 3,286 $ 2 $ 3,355 $ 2 Net Income Amortization of defined benefit pension plan items $ 96 $ 142 $ 191 $ 284 Salaries, wages and employee benefits (operating expenses) (20 ) (30 ) (40 ) (60 ) Income tax expense $ 76 $ 112 151 $ 224 Net Loss Gains and losses on cash flow hedges $ (1,256 ) $ (589 ) $ (2,544 ) $ (347 ) Interest on short-term borrowings (interest expense) 264 124 534 73 Income tax benefit $ (992 ) $ (465 ) $ (2,010 ) $ (274 ) Net Income |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019Bank | Dec. 31, 2017USD ($) | ||
Accounting Policies [Abstract] | |||
Number of banks through which company operates (in bank) | Bank | 1 | ||
Number of regional banking units Chemical Bank operates through (in bank) | Bank | 6 | ||
Business Acquisition | |||
Cumulative effect adjustment of change in accounting policy, net of tax impact | $ | [1] | $ 1,339 | |
Retained earnings | |||
Business Acquisition | |||
Cumulative effect adjustment of change in accounting policy, net of tax impact | $ | [1] | $ 1,680 | |
[1] | Refer to Note 1 , Basis of Presentation and Significant Accounting Policies, Note 6 , Other Real Estate Owned and Repossessed Assets and Note 20 , Accumulated Other Comprehensive Loss for further details on the changes in accounting policy. |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - ASU Adoptions (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adjustments to retained earnings | $ 699,712 | $ 616,149 | ||
Right of use assets | 40,500 | |||
Lease liability | $ 41,403 | |||
ASU 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adjustments to retained earnings | $ 1,200 | |||
ASU 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adjustments to retained earnings | 300 | |||
ASU 2017-12 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adjustments to retained earnings | $ 3 | |||
ASU 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right of use assets | $ 37,200 | |||
Lease liability | $ 38,200 |
Mergers and Acquisitions - Text
Mergers and Acquisitions - Textual (Details) $ / shares in Units, $ in Thousands | Jan. 27, 2019$ / shares | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition | |||
Assets | $ 22,491,765 | $ 21,498,341 | |
Share price (in usd per share) | $ / shares | $ 21.58 | ||
TCF | |||
Business Acquisition | |||
Assets | $ 24,400,000 | ||
Preferred stock, dividend rate | 5.70% | ||
TCF | |||
Business Acquisition | |||
Conversion ration | 0.005081 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities on a Recurring Basis (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | $ 3,369,872,000 | $ 3,021,832,000 | ||||
Loan servicing rights | 60,658,000 | $ 64,701,000 | 71,013,000 | $ 70,364,000 | $ 68,837,000 | $ 63,841,000 |
Transfers between levels | 0 | |||||
Measured on a Recurring Basis | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 3,369,872,000 | 3,021,832,000 | ||||
Loans held-for-sale | 33,019,000 | 85,030,000 | ||||
Loan servicing rights | 60,658,000 | 71,013,000 | ||||
Total derivatives | 73,068,000 | 38,595,000 | ||||
Total assets measured at fair value on a recurring basis | 3,536,617,000 | 3,216,470,000 | ||||
Total derivatives | 97,179,000 | 32,379,000 | ||||
Total liabilities at fair value | 97,179,000 | 32,379,000 | ||||
Measured on a Recurring Basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 0 | 0 | ||||
Loans held-for-sale | 0 | 0 | ||||
Loan servicing rights | 0 | 0 | ||||
Total derivatives | 0 | 0 | ||||
Total assets measured at fair value on a recurring basis | 0 | 0 | ||||
Total derivatives | 0 | 0 | ||||
Total liabilities at fair value | 0 | 0 | ||||
Measured on a Recurring Basis | Significant Other Observable Inputs (Level 2) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 3,369,872,000 | 3,021,832,000 | ||||
Loans held-for-sale | 33,019,000 | 85,030,000 | ||||
Loan servicing rights | 0 | 0 | ||||
Total derivatives | 73,068,000 | 38,595,000 | ||||
Total assets measured at fair value on a recurring basis | 3,475,959,000 | 3,145,457,000 | ||||
Total derivatives | 97,179,000 | 32,379,000 | ||||
Total liabilities at fair value | 97,179,000 | 32,379,000 | ||||
Measured on a Recurring Basis | Significant Unobservable Inputs (Level 3) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 0 | 0 | ||||
Loans held-for-sale | 0 | 0 | ||||
Loan servicing rights | 60,658,000 | 71,013,000 | ||||
Total derivatives | 0 | 0 | ||||
Total assets measured at fair value on a recurring basis | 60,658,000 | 71,013,000 | ||||
Total derivatives | 0 | 0 | ||||
Total liabilities at fair value | 0 | 0 | ||||
Measured on a Recurring Basis | Customer-initiated derivatives | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 69,024,000 | 26,680,000 | ||||
Total derivatives | 70,707,000 | 27,664,000 | ||||
Measured on a Recurring Basis | Customer-initiated derivatives | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 0 | 0 | ||||
Total derivatives | 0 | 0 | ||||
Measured on a Recurring Basis | Customer-initiated derivatives | Significant Other Observable Inputs (Level 2) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 69,024,000 | 26,680,000 | ||||
Total derivatives | 70,707,000 | 27,664,000 | ||||
Measured on a Recurring Basis | Customer-initiated derivatives | Significant Unobservable Inputs (Level 3) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 0 | 0 | ||||
Total derivatives | 0 | 0 | ||||
Measured on a Recurring Basis | Forward contracts related to mortgage loans to be delivered for sale | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 661,000 | 719,000 | ||||
Measured on a Recurring Basis | Forward contracts related to mortgage loans to be delivered for sale | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 0 | 0 | ||||
Measured on a Recurring Basis | Forward contracts related to mortgage loans to be delivered for sale | Significant Other Observable Inputs (Level 2) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 661,000 | 719,000 | ||||
Measured on a Recurring Basis | Forward contracts related to mortgage loans to be delivered for sale | Significant Unobservable Inputs (Level 3) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 0 | 0 | ||||
Measured on a Recurring Basis | Interest rate lock commitments | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 2,687,000 | 1,049,000 | ||||
Measured on a Recurring Basis | Interest rate lock commitments | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 0 | 0 | ||||
Measured on a Recurring Basis | Interest rate lock commitments | Significant Other Observable Inputs (Level 2) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 2,687,000 | 1,049,000 | ||||
Measured on a Recurring Basis | Interest rate lock commitments | Significant Unobservable Inputs (Level 3) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 0 | 0 | ||||
Measured on a Recurring Basis | Power Equity CD | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 751,000 | 718,000 | ||||
Total derivatives | 751,000 | 718,000 | ||||
Measured on a Recurring Basis | Power Equity CD | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 0 | 0 | ||||
Total derivatives | 0 | 0 | ||||
Measured on a Recurring Basis | Power Equity CD | Significant Other Observable Inputs (Level 2) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 751,000 | 718,000 | ||||
Total derivatives | 751,000 | 718,000 | ||||
Measured on a Recurring Basis | Power Equity CD | Significant Unobservable Inputs (Level 3) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 0 | 0 | ||||
Total derivatives | 0 | 0 | ||||
Measured on a Recurring Basis | Risk management derivatives | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 606,000 | 10,148,000 | ||||
Total derivatives | 25,060,000 | 3,278,000 | ||||
Measured on a Recurring Basis | Risk management derivatives | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 0 | 0 | ||||
Total derivatives | 0 | 0 | ||||
Measured on a Recurring Basis | Risk management derivatives | Significant Other Observable Inputs (Level 2) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 606,000 | 10,148,000 | ||||
Total derivatives | 25,060,000 | 3,278,000 | ||||
Measured on a Recurring Basis | Risk management derivatives | Significant Unobservable Inputs (Level 3) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Total derivatives | 0 | 0 | ||||
Total derivatives | 0 | 0 | ||||
Measured on a Recurring Basis | Government and government-sponsored enterprises | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 295,726,000 | 351,700,000 | ||||
Measured on a Recurring Basis | Government and government-sponsored enterprises | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 0 | 0 | ||||
Measured on a Recurring Basis | Government and government-sponsored enterprises | Significant Other Observable Inputs (Level 2) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 295,726,000 | 351,700,000 | ||||
Measured on a Recurring Basis | Government and government-sponsored enterprises | Significant Unobservable Inputs (Level 3) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 0 | 0 | ||||
Measured on a Recurring Basis | State and political subdivisions | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 444,085,000 | 516,286,000 | ||||
Measured on a Recurring Basis | State and political subdivisions | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 0 | 0 | ||||
Measured on a Recurring Basis | State and political subdivisions | Significant Other Observable Inputs (Level 2) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 444,085,000 | 516,286,000 | ||||
Measured on a Recurring Basis | State and political subdivisions | Significant Unobservable Inputs (Level 3) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 0 | 0 | ||||
Measured on a Recurring Basis | Residential mortgage-backed securities | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 353,622,000 | 213,428,000 | ||||
Measured on a Recurring Basis | Residential mortgage-backed securities | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 0 | 0 | ||||
Measured on a Recurring Basis | Residential mortgage-backed securities | Significant Other Observable Inputs (Level 2) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 353,622,000 | 213,428,000 | ||||
Measured on a Recurring Basis | Residential mortgage-backed securities | Significant Unobservable Inputs (Level 3) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 0 | 0 | ||||
Measured on a Recurring Basis | Collateralized mortgage obligations | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 1,939,695,000 | 1,601,298,000 | ||||
Measured on a Recurring Basis | Collateralized mortgage obligations | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 0 | 0 | ||||
Measured on a Recurring Basis | Collateralized mortgage obligations | Significant Other Observable Inputs (Level 2) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 1,939,695,000 | 1,601,298,000 | ||||
Measured on a Recurring Basis | Collateralized mortgage obligations | Significant Unobservable Inputs (Level 3) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 0 | 0 | ||||
Measured on a Recurring Basis | Corporate bonds | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 289,312,000 | 293,063,000 | ||||
Measured on a Recurring Basis | Corporate bonds | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 0 | 0 | ||||
Measured on a Recurring Basis | Corporate bonds | Significant Other Observable Inputs (Level 2) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 289,312,000 | 293,063,000 | ||||
Measured on a Recurring Basis | Corporate bonds | Significant Unobservable Inputs (Level 3) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 0 | 0 | ||||
Measured on a Recurring Basis | Trust preferred securities | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 47,432,000 | 46,057,000 | ||||
Measured on a Recurring Basis | Trust preferred securities | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 0 | 0 | ||||
Measured on a Recurring Basis | Trust preferred securities | Significant Other Observable Inputs (Level 2) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | 47,432,000 | 46,057,000 | ||||
Measured on a Recurring Basis | Trust preferred securities | Significant Unobservable Inputs (Level 3) | ||||||
Summary of assets measured at fair value on a recurring basis | ||||||
Carried at fair value | $ 0 | $ 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis | ||||
Balance, beginning of period | $ 64,701 | $ 68,837 | $ 71,013 | $ 63,841 |
Gains (losses): Recorded in earnings (realized): | ||||
Recorded in Net gain on sale of loans and other mortgage banking revenue | (6,152) | (757) | (14,597) | 2,272 |
New originations | 2,109 | 2,284 | 4,242 | 4,251 |
Balance, end of period | $ 60,658 | $ 70,364 | $ 60,658 | $ 70,364 |
Fair Value Measurements - Aggre
Fair Value Measurements - Aggregate Fair Value, Contractual Balance, and Gain or Loss for Loans Held-For-Sale (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Aggregate fair value | $ 33,019 | $ 85,030 |
Contractual balance | 31,799 | 82,080 |
Unrealized gain | $ 1,220 | $ 2,950 |
Fair Value Measurements - Gains
Fair Value Measurements - Gains (Losses) from Loans Held-for-Sale (Details) - Loans Held For Sale - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total included in earnings | $ 6,069 | $ 4,952 | $ 10,777 | $ 6,136 |
Interest income | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total included in earnings | 336 | 445 | 969 | 821 |
Change in fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total included in earnings | 345 | 484 | (1,730) | (216) |
Net gain on sale of loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total included in earnings | $ 5,388 | $ 4,023 | $ 11,538 | $ 5,531 |
Fair Value Measurements - Textu
Fair Value Measurements - Textual (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value Measurements (Textual) [Abstract] | ||
Impairment of goodwill | $ 0 | $ 0 |
Core deposit intangible assets | ||
Fair Value Measurements (Textual) [Abstract] | ||
Impairment valuation allowance | $ 0 | 0 |
Minimum | Core deposit intangible assets | ||
Fair Value Measurements (Textual) [Abstract] | ||
Expected life of intangible assets | 10 years | |
Maximum | Core deposit intangible assets | ||
Fair Value Measurements (Textual) [Abstract] | ||
Expected life of intangible assets | 15 years | |
Loans Held For Sale | ||
Fair Value Measurements (Textual) [Abstract] | ||
Loans held for sale that were on nonaccrual status | $ 0 | 0 |
Loans held for sale that were 90 days past due and on accrual status | $ 0 | 0 |
Total Impaired Loans | Minimum | ||
Fair Value Measurements (Textual) [Abstract] | ||
Percentage of discount factors used to determine fair value | 20.00% | |
Total Impaired Loans | Maximum | ||
Fair Value Measurements (Textual) [Abstract] | ||
Percentage of discount factors used to determine fair value | 30.00% | |
Other Real Estate and Repossessed Assets | Minimum | ||
Fair Value Measurements (Textual) [Abstract] | ||
Percentage of discount factors used to determine fair value | 20.00% | |
Other Real Estate and Repossessed Assets | Maximum | ||
Fair Value Measurements (Textual) [Abstract] | ||
Percentage of discount factors used to determine fair value | 30.00% | |
Measured on a Recurring Basis | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | $ 3,536,617,000 | 3,216,470,000 |
Fair Value Measurements (Textual) [Abstract] | ||
Liabilities recorded at fair value | 97,179,000 | 32,379,000 |
Measured on a Nonrecurring Basis | ||
Fair Value Measurements (Textual) [Abstract] | ||
Liabilities recorded at fair value | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets on a Nonrecurring Basis (Details) - Nonrecurring - Significant Unobservable Inputs (Level 3) $ in Thousands | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 79,649 | $ 64,130 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 76,186 | 63,247 |
Other real estate and repossessed assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 3,463 | $ 883 |
Discount rate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired originated loans, measurement input | 0.20 | |
Other real estate assets, measurement input | 0.20 | |
Discount rate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired originated loans, measurement input | 0.30 | |
Other real estate assets, measurement input | 0.30 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investment securities: | ||
Held-to-maturity | $ 575,502 | $ 618,672 |
Level 3 | Nonrecurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 79,649 | 64,130 |
Level 3 | Nonrecurring | Impaired loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 76,186 | 63,247 |
Carrying Amount | Level 2 | ||
Investment securities: | ||
Held-to-maturity | 565,546 | 623,599 |
Financial liabilities: | ||
Time deposits | 4,360,014 | 4,074,248 |
Collateralized customer deposits | 291,671 | 382,687 |
Short-term borrowings | 2,615,000 | 2,035,000 |
Long-term borrowings | 426,069 | 426,002 |
Carrying Amount | Level 3 | ||
Investment securities: | ||
Held-to-maturity | 500 | 500 |
Net loans | 15,745,936 | 15,159,795 |
Fair Value | Level 2 | ||
Investment securities: | ||
Held-to-maturity | 575,042 | 618,232 |
Financial liabilities: | ||
Time deposits | 4,354,554 | 4,041,212 |
Collateralized customer deposits | 291,513 | 382,370 |
Short-term borrowings | 2,614,777 | 2,034,719 |
Long-term borrowings | 431,043 | 423,258 |
Fair Value | Level 3 | ||
Investment securities: | ||
Held-to-maturity | 460 | 440 |
Net loans | $ 15,717,256 | $ 14,907,789 |
Investment Securities - Availab
Investment Securities - Available-For-Sale Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Total debt securities available-for-sale | ||
Amortized Cost | $ 3,347,679 | |
Unrealized Gains | 35,738 | |
Unrealized Losses | 13,545 | |
Fair Value | 3,369,872 | |
Total | ||
Amortized Cost | 3,347,679 | $ 3,069,645 |
Unrealized Gains | 5,601 | |
Unrealized Losses | 53,414 | |
Total | 3,369,872 | 3,021,832 |
Government and government-sponsored enterprises | ||
Total debt securities available-for-sale | ||
Amortized Cost | 297,284 | 354,342 |
Unrealized Gains | 378 | 713 |
Unrealized Losses | 1,936 | 3,355 |
Fair Value | 295,726 | 351,700 |
State and political subdivisions | ||
Total debt securities available-for-sale | ||
Amortized Cost | 428,365 | 523,178 |
Unrealized Gains | 15,845 | 1,141 |
Unrealized Losses | 125 | 8,033 |
Fair Value | 444,085 | 516,286 |
Residential mortgage-backed securities | ||
Total debt securities available-for-sale | ||
Amortized Cost | 351,790 | 216,990 |
Unrealized Gains | 2,807 | 261 |
Unrealized Losses | 975 | 3,823 |
Fair Value | 353,622 | 213,428 |
Collateralized mortgage obligations | ||
Total debt securities available-for-sale | ||
Amortized Cost | 1,930,699 | 1,623,415 |
Unrealized Gains | 14,869 | 2,903 |
Unrealized Losses | 5,873 | 25,020 |
Fair Value | 1,939,695 | 1,601,298 |
Corporate bonds | ||
Total debt securities available-for-sale | ||
Amortized Cost | 291,869 | 304,243 |
Unrealized Gains | 1,337 | 259 |
Unrealized Losses | 3,894 | 11,439 |
Fair Value | 289,312 | 293,063 |
Trust preferred securities | ||
Total debt securities available-for-sale | ||
Amortized Cost | 47,672 | 47,477 |
Unrealized Gains | 502 | 324 |
Unrealized Losses | 742 | 1,744 |
Fair Value | $ 47,432 | $ 46,057 |
Investment Securities - Held-To
Investment Securities - Held-To-Maturity Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Held-to-maturity Securities | ||
Amortized Cost | $ 566,046 | $ 624,099 |
Unrealized Gains | 10,576 | 2,548 |
Unrealized Losses | 1,120 | 7,975 |
Held-to-maturity, fair value | 575,502 | 618,672 |
State and political subdivisions | ||
Held-to-maturity Securities | ||
Amortized Cost | 565,546 | 623,599 |
Unrealized Gains | 10,576 | 2,548 |
Unrealized Losses | 1,080 | 7,915 |
Held-to-maturity, fair value | 575,042 | 618,232 |
Trust preferred securities | ||
Held-to-maturity Securities | ||
Amortized Cost | 500 | 500 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 40 | 60 |
Held-to-maturity, fair value | $ 460 | $ 440 |
Investment Securities - Gains a
Investment Securities - Gains and (Losses) Recognized in Earnings (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)security | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)security | Jun. 30, 2018USD ($) | |
Investments, Debt and Equity Securities [Abstract] | ||||
Securities in unrealized loss positions, qualitative disclosure, number of positions (in security) | security | 512 | 512 | ||
Proceeds | $ 133,829 | $ 4,215 | $ 205,331 | $ 4,215 |
Gross gains | 4,180 | 42 | 4,732 | 42 |
Gross losses | $ (20) | $ (39) | $ (485) | $ (39) |
Investment Securities - Maturit
Investment Securities - Maturities of Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investment Securities Available-for-Sale: Amortized Cost | ||
Due in one year or less | $ 779,977 | |
Due after one year through five years | 1,292,316 | |
Due after five years through ten years | 812,375 | |
Due after ten years | 463,011 | |
Amortized Cost | 3,347,679 | $ 3,069,645 |
Investment Securities Available-for-Sale: Fair Value | ||
Due in one year or less | 784,061 | |
Due after one year through five years | 1,297,464 | |
Due after five years through ten years | 809,765 | |
Due after ten years | 478,582 | |
Total | 3,369,872 | 3,021,832 |
Investment Securities Held-to-Maturity: Amortized Cost | ||
Due in one year or less | 55,592 | |
Due after one year through five years | 207,221 | |
Due after five years through ten years | 138,384 | |
Due after ten years | 164,849 | |
Amortized Cost | 566,046 | 624,099 |
Investment Securities Held-to-Maturity: Fair Value | ||
Due in one year or less | 55,657 | |
Due after one year through five years | 209,710 | |
Due after five years through ten years | 142,283 | |
Due after ten years | 167,852 | |
Total | 575,502 | 618,672 |
Collateral Pledged | ||
Investment Securities Held-to-Maturity: Amortized Cost | ||
Amortized Cost | $ 897,000 | $ 1,050,000 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses (Details) $ in Thousands | Jun. 30, 2019USD ($)security | Dec. 31, 2018USD ($) |
Schedule of Investments [Line Items] | ||
Total number of securities, available-for-sale and held-to-maturity (in security) | security | 1,912 | |
Securities in unrealized loss positions, qualitative disclosure, number of positions (in security) | security | 512 | |
Fair Value | ||
Less Than 12 Months | $ 369,846 | $ 1,078,804 |
12 Months or More | 1,097,973 | 1,605,905 |
Total | 1,467,819 | 2,684,709 |
Gross Unrealized Losses | ||
Less Than 12 Months | 2,659 | 16,485 |
12 Months or More | 12,006 | 44,904 |
Total | 14,665 | 61,389 |
Government and government-sponsored enterprises | ||
Fair Value | ||
Less Than 12 Months | 38,077 | 167,164 |
12 Months or More | 171,701 | 62,200 |
Total | 209,778 | 229,364 |
Gross Unrealized Losses | ||
Less Than 12 Months | 74 | 1,672 |
12 Months or More | 1,862 | 1,683 |
Total | 1,936 | 3,355 |
State and political subdivisions | ||
Fair Value | ||
Less Than 12 Months | 10,105 | 190,551 |
12 Months or More | 242,873 | 657,327 |
Total | 252,978 | 847,878 |
Gross Unrealized Losses | ||
Less Than 12 Months | 15 | 1,932 |
12 Months or More | 1,190 | 14,016 |
Total | 1,205 | 15,948 |
Residential mortgage-backed securities | ||
Fair Value | ||
Less Than 12 Months | 14,778 | 20,679 |
12 Months or More | 102,387 | 123,757 |
Total | 117,165 | 144,436 |
Gross Unrealized Losses | ||
Less Than 12 Months | 17 | 85 |
12 Months or More | 958 | 3,738 |
Total | 975 | 3,823 |
Collateralized mortgage obligations | ||
Fair Value | ||
Less Than 12 Months | 229,853 | 496,356 |
12 Months or More | 464,641 | 656,208 |
Total | 694,494 | 1,152,564 |
Gross Unrealized Losses | ||
Less Than 12 Months | 1,684 | 5,268 |
12 Months or More | 4,189 | 19,752 |
Total | 5,873 | 25,020 |
Corporate bonds | ||
Fair Value | ||
Less Than 12 Months | 52,131 | 169,431 |
12 Months or More | 113,659 | 103,688 |
Total | 165,790 | 273,119 |
Gross Unrealized Losses | ||
Less Than 12 Months | 269 | 5,888 |
12 Months or More | 3,625 | 5,551 |
Total | 3,894 | 11,439 |
Trust preferred securities | ||
Fair Value | ||
Less Than 12 Months | 24,902 | 34,623 |
12 Months or More | 2,712 | 2,725 |
Total | 27,614 | 37,348 |
Gross Unrealized Losses | ||
Less Than 12 Months | 600 | 1,640 |
12 Months or More | 182 | 164 |
Total | $ 782 | $ 1,804 |
Loans - Textual (Details)
Loans - Textual (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)executive | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segmenttenantclass_of_loanexecutive | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of portfolio segment (in segment) | segment | 2 | ||||
Number of classes of loans (in class of loan) | class_of_loan | 6 | ||||
Number of minimum tenants under lease of non-owner occupied commercial real estate (in tenant) | tenant | 1 | ||||
Minimum value of loan that requires regional loan committee approval | $ 3,000 | $ 3,000 | |||
Maximum value of loan that requires regional loan committee approval | 7,000 | 7,000 | |||
Total troubled debt restructurings | 77,776 | 77,776 | $ 73,655 | ||
Residential mortgage loans in process of foreclosure | 3,600 | 3,600 | 4,500 | ||
Commitment to lend additional funds to borrowers whose terms have been modified in TDRs | 4,300 | 4,300 | 3,200 | ||
Loans held-for-sale, at fair value | 33,019 | 33,019 | 85,030 | ||
Proceeds from sales of loans | 196,900 | $ 202,100 | 392,730 | $ 392,570 | |
Nonperforming | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total troubled debt restructurings | 29,923 | 29,923 | 28,075 | ||
Performing | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total troubled debt restructurings | 47,853 | 47,853 | 45,580 | ||
Consumer loan portfolio | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total troubled debt restructurings | 15,701 | 15,701 | 16,804 | ||
Consumer loan portfolio | Nonperforming | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total troubled debt restructurings | 3,397 | 3,397 | 3,732 | ||
Consumer loan portfolio | Performing | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total troubled debt restructurings | 12,304 | 12,304 | 13,072 | ||
Commercial loan portfolio | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total troubled debt restructurings | 62,075 | 62,075 | 56,851 | ||
Commercial loan portfolio | Nonperforming | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total troubled debt restructurings | 26,526 | 26,526 | 24,343 | ||
Commercial loan portfolio | Performing | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total troubled debt restructurings | 35,549 | $ 35,549 | $ 32,508 | ||
Land development loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Maximum period for payment of loan | 12 months | ||||
Residential mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Period for loan secured under real estate residential security | 15 years | ||||
Loan-to-value ratio at the time of origination | 80.00% | ||||
Commercial | Commercial loan portfolio | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Minimum value of loan requires group loan authority approval | 1,250 | $ 1,250 | |||
Maximum value of loan requires senior officer approval | $ 3,000 | $ 3,000 | |||
Number of bank executives and senior officers with credit decision limits similar to group loan authorities (in executive) | executive | 6 | 6 | |||
Maximum value of loan requires executive and senior officer approval | $ 8,000 | $ 8,000 | |||
Minimum value of loan requires group loan authority approval | $ 7,000 | $ 7,000 |
Loans - Summary of Loans (Detai
Loans - Summary of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Summary of loans under portfolio | ||
Total loans | $ 15,861,903 | $ 15,269,779 |
Deferred income | 27,200 | 19,700 |
Commercial loan portfolio | ||
Summary of loans under portfolio | ||
Total loans | 9,895,855 | 9,511,867 |
Commercial loan portfolio | Commercial | ||
Summary of loans under portfolio | ||
Total loans | 4,347,885 | 4,002,568 |
Commercial loan portfolio | Total commercial real estate | ||
Summary of loans under portfolio | ||
Total loans | 4,847,200 | 4,912,087 |
Commercial loan portfolio | Real estate construction and land development | ||
Summary of loans under portfolio | ||
Total loans | 700,770 | 597,212 |
Consumer loan portfolio | ||
Summary of loans under portfolio | ||
Total loans | 5,966,048 | 5,757,912 |
Consumer loan portfolio | Residential mortgage | ||
Summary of loans under portfolio | ||
Total loans | 3,666,613 | 3,458,666 |
Consumer loan portfolio | Consumer installment | ||
Summary of loans under portfolio | ||
Total loans | 1,552,835 | 1,521,074 |
Consumer loan portfolio | Home equity | ||
Summary of loans under portfolio | ||
Total loans | 746,600 | 778,172 |
Originated | ||
Summary of loans under portfolio | ||
Total loans | 12,871,110 | 11,844,756 |
Originated | Commercial | ||
Summary of loans under portfolio | ||
Total loans | 3,752,528 | 3,287,087 |
Originated | Total commercial real estate | ||
Summary of loans under portfolio | ||
Total loans | 3,622,488 | 3,520,157 |
Originated | Real estate construction and land development | ||
Summary of loans under portfolio | ||
Total loans | 671,773 | 566,726 |
Originated | Residential mortgage | ||
Summary of loans under portfolio | ||
Total loans | 2,722,019 | 2,407,305 |
Originated | Consumer installment | ||
Summary of loans under portfolio | ||
Total loans | 1,497,467 | 1,451,352 |
Originated | Home equity | ||
Summary of loans under portfolio | ||
Total loans | 604,835 | 612,129 |
Originated | Commercial loan portfolio | ||
Summary of loans under portfolio | ||
Total loans | 8,046,789 | 7,373,970 |
Originated | Commercial loan portfolio | Commercial | ||
Summary of loans under portfolio | ||
Total loans | 3,752,528 | 3,287,087 |
Originated | Commercial loan portfolio | Total commercial real estate | ||
Summary of loans under portfolio | ||
Total loans | 3,622,488 | 3,520,157 |
Originated | Commercial loan portfolio | Real estate construction and land development | ||
Summary of loans under portfolio | ||
Total loans | 671,773 | 566,726 |
Originated | Consumer loan portfolio | ||
Summary of loans under portfolio | ||
Total loans | 4,824,321 | 4,470,786 |
Originated | Consumer loan portfolio | Residential mortgage | ||
Summary of loans under portfolio | ||
Total loans | 2,722,019 | 2,407,305 |
Originated | Consumer loan portfolio | Consumer installment | ||
Summary of loans under portfolio | ||
Total loans | 1,497,467 | 1,451,352 |
Originated | Consumer loan portfolio | Home equity | ||
Summary of loans under portfolio | ||
Total loans | 604,835 | 612,129 |
Acquired | ||
Summary of loans under portfolio | ||
Total loans | 2,990,793 | 3,425,023 |
Acquired | Commercial loan portfolio | ||
Summary of loans under portfolio | ||
Total loans | 1,849,066 | 2,137,897 |
Acquired | Commercial loan portfolio | Commercial | ||
Summary of loans under portfolio | ||
Total loans | 595,357 | 715,481 |
Acquired | Commercial loan portfolio | Total commercial real estate | ||
Summary of loans under portfolio | ||
Total loans | 1,224,712 | 1,391,930 |
Acquired | Commercial loan portfolio | Real estate construction and land development | ||
Summary of loans under portfolio | ||
Total loans | 28,997 | 30,486 |
Acquired | Consumer loan portfolio | ||
Summary of loans under portfolio | ||
Total loans | 1,141,727 | 1,287,126 |
Acquired | Consumer loan portfolio | Residential mortgage | ||
Summary of loans under portfolio | ||
Total loans | 944,594 | 1,051,361 |
Acquired | Consumer loan portfolio | Consumer installment | ||
Summary of loans under portfolio | ||
Total loans | 55,368 | 69,722 |
Acquired | Consumer loan portfolio | Home equity | ||
Summary of loans under portfolio | ||
Total loans | 141,765 | 166,043 |
Owner-occupied | Commercial loan portfolio | Commercial | ||
Summary of loans under portfolio | ||
Total loans | 2,024,561 | 2,059,557 |
Owner-occupied | Originated | Commercial | ||
Summary of loans under portfolio | ||
Total loans | 1,528,802 | 1,513,532 |
Owner-occupied | Originated | Commercial loan portfolio | Commercial | ||
Summary of loans under portfolio | ||
Total loans | 1,528,802 | 1,513,532 |
Owner-occupied | Acquired | Commercial loan portfolio | Commercial | ||
Summary of loans under portfolio | ||
Total loans | 495,759 | 546,025 |
Non-owner occupied | Commercial loan portfolio | Commercial | ||
Summary of loans under portfolio | ||
Total loans | 2,772,677 | 2,785,020 |
Non-owner occupied | Originated | Commercial | ||
Summary of loans under portfolio | ||
Total loans | 2,056,531 | 1,966,330 |
Non-owner occupied | Originated | Commercial loan portfolio | Commercial | ||
Summary of loans under portfolio | ||
Total loans | 2,056,531 | 1,966,330 |
Non-owner occupied | Acquired | Commercial loan portfolio | Commercial | ||
Summary of loans under portfolio | ||
Total loans | 716,146 | 818,690 |
Vacant land | Commercial loan portfolio | Commercial | ||
Summary of loans under portfolio | ||
Total loans | 49,962 | 67,510 |
Vacant land | Originated | Commercial | ||
Summary of loans under portfolio | ||
Total loans | 37,155 | 40,295 |
Vacant land | Originated | Commercial loan portfolio | Commercial | ||
Summary of loans under portfolio | ||
Total loans | 37,155 | 40,295 |
Vacant land | Acquired | Commercial loan portfolio | Commercial | ||
Summary of loans under portfolio | ||
Total loans | $ 12,807 | $ 27,215 |
Loans - Activity for Accretable
Loans - Activity for Accretable Yield (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Activity for accretable yield | ||||
Balance at beginning of period | $ 602,664 | $ 868,698 | $ 647,325 | $ 926,897 |
Accretion recognized in interest income | (47,421) | (56,900) | (96,566) | (115,461) |
Net reclassification (to) from nonaccretable difference | 3,547 | (31,034) | 8,031 | (30,672) |
Balance at end of period | 558,790 | 780,764 | 558,790 | 780,764 |
Talmer | ||||
Activity for accretable yield | ||||
Balance at beginning of period | 469,713 | 685,830 | 505,332 | 731,353 |
Accretion recognized in interest income | (36,730) | (42,136) | (74,761) | (84,776) |
Net reclassification (to) from nonaccretable difference | 730 | (27,526) | 3,142 | (30,409) |
Balance at end of period | 433,713 | 616,168 | 433,713 | 616,168 |
Lake Michigan | ||||
Activity for accretable yield | ||||
Balance at beginning of period | 68,995 | 90,156 | 73,132 | 95,124 |
Accretion recognized in interest income | (5,291) | (6,302) | (10,842) | (13,060) |
Net reclassification (to) from nonaccretable difference | 409 | (3,412) | 1,823 | (1,622) |
Balance at end of period | 64,113 | 80,442 | 64,113 | 80,442 |
Monarch | ||||
Activity for accretable yield | ||||
Balance at beginning of period | 16,967 | 21,154 | 17,832 | 22,496 |
Accretion recognized in interest income | (852) | (962) | (1,626) | (2,118) |
Net reclassification (to) from nonaccretable difference | 750 | (61) | 659 | (247) |
Balance at end of period | 16,865 | 20,131 | 16,865 | 20,131 |
North-western | ||||
Activity for accretable yield | ||||
Balance at beginning of period | 38,644 | 55,400 | 41,455 | 60,814 |
Accretion recognized in interest income | (3,214) | (4,618) | (6,634) | (9,522) |
Net reclassification (to) from nonaccretable difference | 745 | (1,051) | 1,354 | (1,561) |
Balance at end of period | 36,175 | 49,731 | 36,175 | 49,731 |
OAK | ||||
Activity for accretable yield | ||||
Balance at beginning of period | 8,345 | 16,158 | 9,574 | 17,110 |
Accretion recognized in interest income | (1,334) | (2,882) | (2,703) | (5,985) |
Net reclassification (to) from nonaccretable difference | 913 | 1,016 | 1,053 | 3,167 |
Balance at end of period | $ 7,924 | $ 14,292 | $ 7,924 | $ 14,292 |
Loans - Commercial Loans by Ris
Loans - Commercial Loans by Risk Rating Categories (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 15,861,903 | $ 15,269,779 |
Originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 12,871,110 | 11,844,756 |
Originated | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 3,752,528 | 3,287,087 |
Originated | Total commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 3,622,488 | 3,520,157 |
Originated | Real estate construction and land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 671,773 | 566,726 |
Acquired | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,990,793 | 3,425,023 |
Commercial loan portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 9,895,855 | 9,511,867 |
Commercial loan portfolio | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 9,354,289 | 8,998,284 |
Commercial loan portfolio | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 282,192 | 283,400 |
Commercial loan portfolio | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 250,024 | 225,924 |
Commercial loan portfolio | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 9,350 | 4,259 |
Commercial loan portfolio | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 4,347,885 | 4,002,568 |
Commercial loan portfolio | Total commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 4,847,200 | 4,912,087 |
Commercial loan portfolio | Real estate construction and land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 700,770 | 597,212 |
Commercial loan portfolio | Originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 8,046,789 | 7,373,970 |
Commercial loan portfolio | Originated | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 7,689,269 | 7,045,203 |
Commercial loan portfolio | Originated | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 158,331 | 164,802 |
Commercial loan portfolio | Originated | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 192,055 | 159,733 |
Commercial loan portfolio | Originated | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 7,134 | 4,232 |
Commercial loan portfolio | Originated | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 3,752,528 | 3,287,087 |
Commercial loan portfolio | Originated | Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 3,513,993 | 3,118,894 |
Commercial loan portfolio | Originated | Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 123,194 | 87,222 |
Commercial loan portfolio | Originated | Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 108,373 | 77,036 |
Commercial loan portfolio | Originated | Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 6,968 | 3,935 |
Commercial loan portfolio | Originated | Total commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 3,622,488 | 3,520,157 |
Commercial loan portfolio | Originated | Total commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 3,511,154 | 3,369,269 |
Commercial loan portfolio | Originated | Total commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 31,525 | 71,472 |
Commercial loan portfolio | Originated | Total commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 79,643 | 79,119 |
Commercial loan portfolio | Originated | Total commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 166 | 297 |
Commercial loan portfolio | Originated | Real estate construction and land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 671,773 | 566,726 |
Commercial loan portfolio | Originated | Real estate construction and land development | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 664,122 | 557,040 |
Commercial loan portfolio | Originated | Real estate construction and land development | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 3,612 | 6,108 |
Commercial loan portfolio | Originated | Real estate construction and land development | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 4,039 | 3,578 |
Commercial loan portfolio | Originated | Real estate construction and land development | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial loan portfolio | Acquired | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,849,066 | 2,137,897 |
Commercial loan portfolio | Acquired | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,665,020 | 1,953,081 |
Commercial loan portfolio | Acquired | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 123,861 | 118,598 |
Commercial loan portfolio | Acquired | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 57,969 | 66,191 |
Commercial loan portfolio | Acquired | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,216 | 27 |
Commercial loan portfolio | Acquired | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 595,357 | 715,481 |
Commercial loan portfolio | Acquired | Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 505,823 | 655,883 |
Commercial loan portfolio | Acquired | Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 62,253 | 36,809 |
Commercial loan portfolio | Acquired | Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 25,512 | 22,773 |
Commercial loan portfolio | Acquired | Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,769 | 16 |
Commercial loan portfolio | Acquired | Total commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,224,712 | 1,391,930 |
Commercial loan portfolio | Acquired | Total commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,130,482 | 1,267,950 |
Commercial loan portfolio | Acquired | Total commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 61,566 | 81,692 |
Commercial loan portfolio | Acquired | Total commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 32,217 | 42,277 |
Commercial loan portfolio | Acquired | Total commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 447 | 11 |
Commercial loan portfolio | Acquired | Real estate construction and land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 28,997 | 30,486 |
Commercial loan portfolio | Acquired | Real estate construction and land development | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 28,715 | 29,248 |
Commercial loan portfolio | Acquired | Real estate construction and land development | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 42 | 97 |
Commercial loan portfolio | Acquired | Real estate construction and land development | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 240 | 1,141 |
Commercial loan portfolio | Acquired | Real estate construction and land development | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Owner-occupied | Originated | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,528,802 | 1,513,532 |
Owner-occupied | Commercial loan portfolio | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,024,561 | 2,059,557 |
Owner-occupied | Commercial loan portfolio | Originated | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,528,802 | 1,513,532 |
Owner-occupied | Commercial loan portfolio | Originated | Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,452,031 | 1,430,948 |
Owner-occupied | Commercial loan portfolio | Originated | Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 25,913 | 32,056 |
Owner-occupied | Commercial loan portfolio | Originated | Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 50,697 | 50,286 |
Owner-occupied | Commercial loan portfolio | Originated | Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 161 | 242 |
Owner-occupied | Commercial loan portfolio | Acquired | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 495,759 | 546,025 |
Owner-occupied | Commercial loan portfolio | Acquired | Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 462,266 | 500,072 |
Owner-occupied | Commercial loan portfolio | Acquired | Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 18,226 | 28,909 |
Owner-occupied | Commercial loan portfolio | Acquired | Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 14,835 | 17,033 |
Owner-occupied | Commercial loan portfolio | Acquired | Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 432 | 11 |
Non-owner occupied | Originated | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,056,531 | 1,966,330 |
Non-owner occupied | Commercial loan portfolio | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,772,677 | 2,785,020 |
Non-owner occupied | Commercial loan portfolio | Originated | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,056,531 | 1,966,330 |
Non-owner occupied | Commercial loan portfolio | Originated | Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,023,577 | 1,901,822 |
Non-owner occupied | Commercial loan portfolio | Originated | Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 5,516 | 39,416 |
Non-owner occupied | Commercial loan portfolio | Originated | Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 27,433 | 25,092 |
Non-owner occupied | Commercial loan portfolio | Originated | Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 5 | 0 |
Non-owner occupied | Commercial loan portfolio | Acquired | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 716,146 | 818,690 |
Non-owner occupied | Commercial loan portfolio | Acquired | Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 655,602 | 740,900 |
Non-owner occupied | Commercial loan portfolio | Acquired | Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 43,147 | 52,546 |
Non-owner occupied | Commercial loan portfolio | Acquired | Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 17,382 | 25,244 |
Non-owner occupied | Commercial loan portfolio | Acquired | Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 15 | 0 |
Vacant land | Originated | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 37,155 | 40,295 |
Vacant land | Commercial loan portfolio | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 49,962 | 67,510 |
Vacant land | Commercial loan portfolio | Originated | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 37,155 | 40,295 |
Vacant land | Commercial loan portfolio | Originated | Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 35,546 | 36,499 |
Vacant land | Commercial loan portfolio | Originated | Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 96 | 0 |
Vacant land | Commercial loan portfolio | Originated | Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,513 | 3,741 |
Vacant land | Commercial loan portfolio | Originated | Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 55 |
Vacant land | Commercial loan portfolio | Acquired | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 12,807 | 27,215 |
Vacant land | Commercial loan portfolio | Acquired | Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 12,614 | 26,978 |
Vacant land | Commercial loan portfolio | Acquired | Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 193 | 237 |
Vacant land | Commercial loan portfolio | Acquired | Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Vacant land | Commercial loan portfolio | Acquired | Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans - Consumer Loans by Risk
Loans - Consumer Loans by Risk Rating Categories (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 15,861,903 | $ 15,269,779 |
Originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 12,871,110 | 11,844,756 |
Originated | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,722,019 | 2,407,305 |
Originated | Consumer installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,497,467 | 1,451,352 |
Originated | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 604,835 | 612,129 |
Acquired | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,990,793 | 3,425,023 |
Consumer loan portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 5,966,048 | 5,757,912 |
Consumer loan portfolio | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 3,666,613 | 3,458,666 |
Consumer loan portfolio | Consumer installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,552,835 | 1,521,074 |
Consumer loan portfolio | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 746,600 | 778,172 |
Consumer loan portfolio | Originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 4,824,321 | 4,470,786 |
Consumer loan portfolio | Originated | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,722,019 | 2,407,305 |
Consumer loan portfolio | Originated | Consumer installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,497,467 | 1,451,352 |
Consumer loan portfolio | Originated | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 604,835 | 612,129 |
Consumer loan portfolio | Originated | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 4,811,787 | 4,457,918 |
Consumer loan portfolio | Originated | Performing | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,714,383 | 2,399,317 |
Consumer loan portfolio | Originated | Performing | Consumer installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,496,056 | 1,450,076 |
Consumer loan portfolio | Originated | Performing | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 601,348 | 608,525 |
Consumer loan portfolio | Originated | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 12,534 | 12,868 |
Consumer loan portfolio | Originated | Nonperforming | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 7,636 | 7,988 |
Consumer loan portfolio | Originated | Nonperforming | Consumer installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,411 | 1,276 |
Consumer loan portfolio | Originated | Nonperforming | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 3,487 | 3,604 |
Consumer loan portfolio | Acquired | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,141,727 | 1,287,126 |
Consumer loan portfolio | Acquired | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 944,594 | 1,051,361 |
Consumer loan portfolio | Acquired | Consumer installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 55,368 | 69,722 |
Consumer loan portfolio | Acquired | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 141,765 | $ 166,043 |
Loans - Nonperforming Loans (De
Loans - Nonperforming Loans (Details) - Nonperforming - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Summary of nonperforming loans | ||
Total nonaccrual loans | $ 97,696 | $ 85,433 |
Other real estate owned and repossessed assets | 8,267 | 6,256 |
Total nonperforming assets | 105,963 | 91,689 |
Commercial | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 37,762 | 30,139 |
Total commercial real estate | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 43,899 | 42,414 |
Real estate construction and land development | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 3,501 | 12 |
Residential mortgage | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 7,636 | 7,988 |
Consumer installment | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 1,411 | 1,276 |
Home equity | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 3,487 | 3,604 |
Owner-occupied | Commercial | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 20,814 | 16,056 |
Non-owner occupied | Commercial | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 21,639 | 23,021 |
Vacant land | Commercial | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | $ 1,446 | $ 3,337 |
Loans - Aging Status of Loans (
Loans - Aging Status of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule representing the aging status of the recorded investment in loans by classes | ||
Total loans | $ 15,861,903 | $ 15,269,779 |
Originated Portfolio | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 37,241 | 35,381 |
Nonaccrual Loans | 97,696 | 85,433 |
Current | 12,736,173 | 11,723,942 |
Total loans | 12,871,110 | 11,844,756 |
Originated Portfolio | 30-89 days past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 37,095 | 33,954 |
Originated Portfolio | 90 days or more past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 146 | 1,427 |
Originated Portfolio | Commercial | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 19,304 | 16,835 |
Nonaccrual Loans | 37,762 | 30,139 |
Current | 3,695,462 | 3,240,113 |
Total loans | 3,752,528 | 3,287,087 |
Originated Portfolio | Commercial | 30-89 days past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 19,158 | 16,835 |
Originated Portfolio | Commercial | 90 days or more past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 146 | 0 |
Originated Portfolio | Total commercial real estate | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 5,583 | 7,549 |
Nonaccrual Loans | 43,899 | 42,414 |
Current | 3,573,006 | 3,470,194 |
Total loans | 3,622,488 | 3,520,157 |
Originated Portfolio | Total commercial real estate | 30-89 days past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 5,583 | 6,610 |
Originated Portfolio | Total commercial real estate | 90 days or more past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 0 | 939 |
Originated Portfolio | Real estate construction and land development | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 538 | 247 |
Nonaccrual Loans | 3,501 | 12 |
Current | 667,734 | 566,467 |
Total loans | 671,773 | 566,726 |
Originated Portfolio | Real estate construction and land development | 30-89 days past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 538 | 247 |
Originated Portfolio | Real estate construction and land development | 90 days or more past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 0 | 0 |
Originated Portfolio | Residential mortgage | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 6,183 | 1,688 |
Nonaccrual Loans | 7,636 | 7,988 |
Current | 2,708,200 | 2,397,629 |
Total loans | 2,722,019 | 2,407,305 |
Originated Portfolio | Residential mortgage | 30-89 days past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 6,183 | 1,688 |
Originated Portfolio | Residential mortgage | 90 days or more past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 0 | 0 |
Originated Portfolio | Consumer installment | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 3,076 | 4,731 |
Nonaccrual Loans | 1,411 | 1,276 |
Current | 1,492,980 | 1,445,345 |
Total loans | 1,497,467 | 1,451,352 |
Originated Portfolio | Consumer installment | 30-89 days past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 3,076 | 4,731 |
Originated Portfolio | Consumer installment | 90 days or more past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 0 | 0 |
Originated Portfolio | Home equity | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 2,557 | 4,331 |
Nonaccrual Loans | 3,487 | 3,604 |
Current | 598,791 | 604,194 |
Total loans | 604,835 | 612,129 |
Originated Portfolio | Home equity | 30-89 days past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 2,557 | 3,843 |
Originated Portfolio | Home equity | 90 days or more past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 0 | 488 |
Owner-occupied | Originated Portfolio | Commercial | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 3,368 | 4,709 |
Nonaccrual Loans | 20,814 | 16,056 |
Current | 1,504,620 | 1,492,767 |
Total loans | 1,528,802 | 1,513,532 |
Owner-occupied | Originated Portfolio | Commercial | 30-89 days past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 3,368 | 4,657 |
Owner-occupied | Originated Portfolio | Commercial | 90 days or more past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 0 | 52 |
Non-owner occupied | Originated Portfolio | Commercial | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 1,714 | 2,680 |
Nonaccrual Loans | 21,639 | 23,021 |
Current | 2,033,178 | 1,940,629 |
Total loans | 2,056,531 | 1,966,330 |
Non-owner occupied | Originated Portfolio | Commercial | 30-89 days past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 1,714 | 1,793 |
Non-owner occupied | Originated Portfolio | Commercial | 90 days or more past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 0 | 887 |
Vacant land | Originated Portfolio | Commercial | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 501 | 160 |
Nonaccrual Loans | 1,446 | 3,337 |
Current | 35,208 | 36,798 |
Total loans | 37,155 | 40,295 |
Vacant land | Originated Portfolio | Commercial | 30-89 days past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | 501 | 160 |
Vacant land | Originated Portfolio | Commercial | 90 days or more past due | ||
Schedule representing the aging status of the recorded investment in loans by classes | ||
Loans Past Due and Still Accruing | $ 0 | $ 0 |
Loans - Impaired Loans by Class
Loans - Impaired Loans by Class (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Impaired loans with a valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 87,204 | $ 70,051 |
Unpaid Principal Balance | 94,274 | 75,511 |
Related Valuation Allowance | 11,018 | 6,804 |
Impaired loans with no valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 58,497 | 60,822 |
Unpaid Principal Balance | 61,586 | 64,378 |
Related Valuation Allowance | 0 | 0 |
Total Impaired Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 145,701 | 130,873 |
Unpaid Principal Balance | 155,860 | 139,889 |
Related Valuation Allowance | 11,018 | 6,804 |
Commercial | Impaired loans with a valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 28,732 | 20,957 |
Unpaid Principal Balance | 31,556 | 23,781 |
Related Valuation Allowance | 5,805 | 3,546 |
Commercial | Impaired loans with no valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 28,775 | 25,093 |
Unpaid Principal Balance | 29,586 | 25,934 |
Related Valuation Allowance | 0 | 0 |
Commercial | Total Impaired Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 57,507 | 46,050 |
Unpaid Principal Balance | 61,142 | 49,715 |
Related Valuation Allowance | 5,805 | 3,546 |
Total commercial real estate | Impaired loans with a valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 38,916 | 32,543 |
Unpaid Principal Balance | 43,162 | 35,179 |
Related Valuation Allowance | 3,593 | 1,917 |
Total commercial real estate | Impaired loans with no valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 20,660 | 26,208 |
Unpaid Principal Balance | 22,938 | 28,923 |
Related Valuation Allowance | 0 | 0 |
Total commercial real estate | Total Impaired Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 59,576 | 58,751 |
Unpaid Principal Balance | 66,100 | 64,102 |
Related Valuation Allowance | 3,593 | 1,917 |
Real estate construction and land development | Impaired loans with a valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 3,612 | 126 |
Unpaid Principal Balance | 3,612 | 126 |
Related Valuation Allowance | 365 | 11 |
Real estate construction and land development | Impaired loans with no valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 164 | 111 |
Unpaid Principal Balance | 164 | 111 |
Related Valuation Allowance | 0 | 0 |
Real estate construction and land development | Total Impaired Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 3,776 | 237 |
Unpaid Principal Balance | 3,776 | 237 |
Related Valuation Allowance | 365 | 11 |
Residential mortgage | Impaired loans with a valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 10,060 | 10,867 |
Unpaid Principal Balance | 10,060 | 10,867 |
Related Valuation Allowance | 790 | 816 |
Residential mortgage | Impaired loans with no valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 7,235 | 7,537 |
Unpaid Principal Balance | 7,235 | 7,537 |
Related Valuation Allowance | 0 | 0 |
Residential mortgage | Total Impaired Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 17,295 | 18,404 |
Unpaid Principal Balance | 17,295 | 18,404 |
Related Valuation Allowance | 790 | 816 |
Consumer installment | Impaired loans with a valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 1,594 | 1,126 |
Unpaid Principal Balance | 1,594 | 1,126 |
Related Valuation Allowance | 109 | 186 |
Consumer installment | Impaired loans with no valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 7 | 377 |
Unpaid Principal Balance | 7 | 377 |
Related Valuation Allowance | 0 | 0 |
Consumer installment | Total Impaired Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 1,601 | 1,503 |
Unpaid Principal Balance | 1,601 | 1,503 |
Related Valuation Allowance | 109 | 186 |
Home equity | Impaired loans with a valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 4,290 | 4,432 |
Unpaid Principal Balance | 4,290 | 4,432 |
Related Valuation Allowance | 356 | 328 |
Home equity | Impaired loans with no valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 1,656 | 1,496 |
Unpaid Principal Balance | 1,656 | 1,496 |
Related Valuation Allowance | 0 | 0 |
Home equity | Total Impaired Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 5,946 | 5,928 |
Unpaid Principal Balance | 5,946 | 5,928 |
Related Valuation Allowance | 356 | 328 |
Owner-occupied | Commercial | Impaired loans with a valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 20,050 | 14,702 |
Unpaid Principal Balance | 22,193 | 16,519 |
Related Valuation Allowance | 2,168 | 1,359 |
Owner-occupied | Commercial | Impaired loans with no valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 12,057 | 10,971 |
Unpaid Principal Balance | 12,895 | 11,601 |
Related Valuation Allowance | 0 | 0 |
Owner-occupied | Commercial | Total Impaired Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 32,107 | 25,673 |
Unpaid Principal Balance | 35,088 | 28,120 |
Related Valuation Allowance | 2,168 | 1,359 |
Non-owner occupied | Commercial | Impaired loans with a valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 18,080 | 16,833 |
Unpaid Principal Balance | 19,966 | 17,452 |
Related Valuation Allowance | 1,366 | 462 |
Non-owner occupied | Commercial | Impaired loans with no valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 7,827 | 12,412 |
Unpaid Principal Balance | 8,339 | 13,411 |
Related Valuation Allowance | 0 | 0 |
Non-owner occupied | Commercial | Total Impaired Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 25,907 | 29,245 |
Unpaid Principal Balance | 28,305 | 30,863 |
Related Valuation Allowance | 1,366 | 462 |
Vacant land | Commercial | Impaired loans with a valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 786 | 1,008 |
Unpaid Principal Balance | 1,003 | 1,208 |
Related Valuation Allowance | 59 | 96 |
Vacant land | Commercial | Impaired loans with no valuation allowance | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 776 | 2,825 |
Unpaid Principal Balance | 1,704 | 3,911 |
Related Valuation Allowance | 0 | 0 |
Vacant land | Commercial | Total Impaired Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 1,562 | 3,833 |
Unpaid Principal Balance | 2,707 | 5,119 |
Related Valuation Allowance | $ 59 | $ 96 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Average recorded investment | ||||
Impaired loans with a valuation allowance | $ 72,761 | $ 51,526 | $ 71,713 | $ 55,997 |
Impaired loans with no related valuation allowance | 69,158 | 59,219 | 68,097 | 55,036 |
Total impaired loans | 141,919 | 110,745 | 139,810 | 111,033 |
Interest income recognized while on impaired status | ||||
Impaired loans with a valuation allowance | 359 | 359 | 750 | 769 |
Impaired loans with no related valuation allowance | 368 | 295 | 688 | 542 |
Total impaired loans | 727 | 654 | 1,438 | 1,311 |
Commercial | ||||
Average recorded investment | ||||
Impaired loans with a valuation allowance | 26,587 | 18,139 | 24,109 | 19,271 |
Impaired loans with no related valuation allowance | 27,865 | 20,078 | 27,510 | 19,102 |
Total impaired loans | 54,452 | 38,217 | 51,619 | 38,373 |
Interest income recognized while on impaired status | ||||
Impaired loans with a valuation allowance | 93 | 111 | 179 | 276 |
Impaired loans with no related valuation allowance | 201 | 147 | 384 | 242 |
Total impaired loans | 294 | 258 | 563 | 518 |
Total commercial real estate | ||||
Average recorded investment | ||||
Impaired loans with a valuation allowance | 27,353 | 16,503 | 29,473 | 19,070 |
Impaired loans with no related valuation allowance | 31,927 | 27,544 | 30,701 | 25,920 |
Total impaired loans | 59,280 | 44,047 | 60,174 | 44,990 |
Interest income recognized while on impaired status | ||||
Impaired loans with a valuation allowance | 141 | 108 | 319 | 216 |
Impaired loans with no related valuation allowance | 131 | 119 | 231 | 240 |
Total impaired loans | 272 | 227 | 550 | 456 |
Real estate construction and land development | ||||
Average recorded investment | ||||
Impaired loans with a valuation allowance | 3,730 | 243 | 3,174 | 234 |
Impaired loans with no related valuation allowance | 102 | 1,994 | 76 | 1,051 |
Total impaired loans | 3,832 | 2,237 | 3,250 | 1,285 |
Interest income recognized while on impaired status | ||||
Impaired loans with a valuation allowance | 2 | 2 | 4 | 4 |
Impaired loans with no related valuation allowance | 2 | 2 | 4 | 3 |
Total impaired loans | 4 | 4 | 8 | 7 |
Residential mortgage | ||||
Average recorded investment | ||||
Impaired loans with a valuation allowance | 10,011 | 12,762 | 10,005 | 13,183 |
Impaired loans with no related valuation allowance | 7,241 | 7,075 | 7,488 | 6,606 |
Total impaired loans | 17,252 | 19,837 | 17,493 | 19,789 |
Interest income recognized while on impaired status | ||||
Impaired loans with a valuation allowance | 97 | 115 | 198 | 232 |
Impaired loans with no related valuation allowance | 29 | 25 | 57 | 48 |
Total impaired loans | 126 | 140 | 255 | 280 |
Consumer installment | ||||
Average recorded investment | ||||
Impaired loans with a valuation allowance | 1,250 | 1,067 | 1,213 | 986 |
Impaired loans with no related valuation allowance | 36 | 41 | 226 | 91 |
Total impaired loans | 1,286 | 1,108 | 1,439 | 1,077 |
Interest income recognized while on impaired status | ||||
Impaired loans with a valuation allowance | 2 | 2 | 4 | 3 |
Impaired loans with no related valuation allowance | 0 | 0 | 0 | 0 |
Total impaired loans | 2 | 2 | 4 | 3 |
Home equity | ||||
Average recorded investment | ||||
Impaired loans with a valuation allowance | 3,830 | 2,812 | 3,739 | 3,253 |
Impaired loans with no related valuation allowance | 1,987 | 2,487 | 2,096 | 2,266 |
Total impaired loans | 5,817 | 5,299 | 5,835 | 5,519 |
Interest income recognized while on impaired status | ||||
Impaired loans with a valuation allowance | 24 | 21 | 46 | 38 |
Impaired loans with no related valuation allowance | 5 | 2 | 12 | 9 |
Total impaired loans | 29 | 23 | 58 | 47 |
Owner-occupied | Total commercial real estate | ||||
Average recorded investment | ||||
Impaired loans with a valuation allowance | 17,515 | 12,949 | 17,522 | 13,510 |
Impaired loans with no related valuation allowance | 14,110 | 14,565 | 12,841 | 14,967 |
Total impaired loans | 31,625 | 27,514 | 30,363 | 28,477 |
Interest income recognized while on impaired status | ||||
Impaired loans with a valuation allowance | 130 | 81 | 255 | 163 |
Impaired loans with no related valuation allowance | 73 | 81 | 126 | 137 |
Total impaired loans | 203 | 162 | 381 | 300 |
Non-owner occupied | Total commercial real estate | ||||
Average recorded investment | ||||
Impaired loans with a valuation allowance | 9,050 | 2,246 | 11,055 | 3,058 |
Impaired loans with no related valuation allowance | 16,677 | 9,539 | 16,073 | 8,349 |
Total impaired loans | 25,727 | 11,785 | 27,128 | 11,407 |
Interest income recognized while on impaired status | ||||
Impaired loans with a valuation allowance | 9 | 10 | 54 | 21 |
Impaired loans with no related valuation allowance | 58 | 38 | 105 | 103 |
Total impaired loans | 67 | 48 | 159 | 124 |
Vacant land | Total commercial real estate | ||||
Average recorded investment | ||||
Impaired loans with a valuation allowance | 788 | 1,308 | 896 | 2,502 |
Impaired loans with no related valuation allowance | 1,140 | 3,440 | 1,787 | 2,604 |
Total impaired loans | 1,928 | 4,748 | 2,683 | 5,106 |
Interest income recognized while on impaired status | ||||
Impaired loans with a valuation allowance | 2 | 17 | 10 | 32 |
Impaired loans with no related valuation allowance | 0 | 0 | 0 | 0 |
Total impaired loans | $ 2 | $ 17 | $ 10 | $ 32 |
Loans - Loan Modifications by C
Loans - Loan Modifications by Concession Type (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | $ 5,443 | $ 1,968 | $ 14,442 | $ 5,946 |
Total number of loans (in loan) | loan | 37 | 35 | 70 | 81 |
Pre-modification recorded investment | $ 5,540 | $ 2,002 | $ 14,792 | $ 6,042 |
Principal deferral | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 433 | 1,337 | 3,857 | 2,702 |
Principal reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 70 | 84 | 274 | 107 |
Interest rate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 1,345 | 516 | 1,815 | 2,363 |
Forbearance agreement | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 3,595 | 31 | 8,496 | 774 |
Commercial loan portfolio | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | $ 4,611 | $ 1,521 | $ 13,188 | $ 5,026 |
Total number of loans (in loan) | loan | 19 | 19 | 36 | 40 |
Pre-modification recorded investment | $ 4,677 | $ 1,544 | $ 13,482 | $ 5,061 |
Commercial loan portfolio | Principal deferral | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 170 | 1,110 | 3,273 | 2,081 |
Commercial loan portfolio | Principal reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 12 | 0 | 115 | 0 |
Commercial loan portfolio | Interest rate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 834 | 380 | 1,304 | 2,171 |
Commercial loan portfolio | Forbearance agreement | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 3,595 | 31 | 8,496 | 774 |
Commercial loan portfolio | Commercial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | $ 3,803 | $ 958 | $ 8,159 | $ 3,187 |
Total number of loans (in loan) | loan | 13 | 13 | 24 | 31 |
Pre-modification recorded investment | $ 3,818 | $ 969 | $ 8,386 | $ 3,204 |
Commercial loan portfolio | Commercial | Principal deferral | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 14 | 740 | 388 | 1,643 |
Commercial loan portfolio | Commercial | Principal reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 12 | 0 | 12 | 0 |
Commercial loan portfolio | Commercial | Interest rate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 426 | 218 | 867 | 1,283 |
Commercial loan portfolio | Commercial | Forbearance agreement | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 3,351 | 0 | 6,892 | 261 |
Commercial loan portfolio | Total commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | $ 808 | $ 563 | $ 5,029 | $ 1,839 |
Total number of loans (in loan) | loan | 6 | 6 | 12 | 9 |
Pre-modification recorded investment | $ 859 | $ 575 | $ 5,096 | $ 1,857 |
Commercial loan portfolio | Total commercial real estate | Principal deferral | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 156 | 370 | 2,885 | 438 |
Commercial loan portfolio | Total commercial real estate | Principal reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 0 | 0 | 103 | 0 |
Commercial loan portfolio | Total commercial real estate | Interest rate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 408 | 162 | 437 | 888 |
Commercial loan portfolio | Total commercial real estate | Forbearance agreement | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 244 | 31 | 1,604 | 513 |
Consumer loan portfolio | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | $ 832 | $ 447 | $ 1,254 | $ 920 |
Total number of loans (in loan) | loan | 18 | 16 | 34 | 41 |
Pre-modification recorded investment | $ 863 | $ 458 | $ 1,310 | $ 981 |
Consumer loan portfolio | Principal deferral | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 263 | 227 | 584 | 621 |
Consumer loan portfolio | Principal reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 58 | 84 | 159 | 107 |
Consumer loan portfolio | Interest rate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 511 | 136 | 511 | 192 |
Consumer loan portfolio | Forbearance agreement | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 0 | 0 | 0 | 0 |
Consumer loan portfolio | Residential mortgage | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | $ 411 | $ 210 | $ 653 | $ 348 |
Total number of loans (in loan) | loan | 4 | 3 | 6 | 7 |
Pre-modification recorded investment | $ 422 | $ 215 | $ 679 | $ 357 |
Consumer loan portfolio | Residential mortgage | Principal deferral | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 81 | 131 | 248 | 269 |
Consumer loan portfolio | Residential mortgage | Principal reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 0 | 40 | 75 | 40 |
Consumer loan portfolio | Residential mortgage | Interest rate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 330 | 39 | 330 | 39 |
Consumer loan portfolio | Residential mortgage | Forbearance agreement | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 0 | 0 | 0 | 0 |
Consumer loan portfolio | Consumer installment | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | $ 67 | $ 69 | $ 139 | $ 191 |
Total number of loans (in loan) | loan | 6 | 9 | 17 | 25 |
Pre-modification recorded investment | $ 70 | $ 72 | $ 149 | $ 200 |
Consumer loan portfolio | Consumer installment | Principal deferral | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 15 | 15 | 61 | 86 |
Consumer loan portfolio | Consumer installment | Principal reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 39 | 44 | 65 | 67 |
Consumer loan portfolio | Consumer installment | Interest rate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 13 | 10 | 13 | 38 |
Consumer loan portfolio | Consumer installment | Forbearance agreement | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 0 | 0 | 0 | 0 |
Consumer loan portfolio | Home equity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | $ 354 | $ 168 | $ 462 | $ 381 |
Total number of loans (in loan) | loan | 8 | 4 | 11 | 9 |
Pre-modification recorded investment | $ 371 | $ 171 | $ 482 | $ 424 |
Consumer loan portfolio | Home equity | Principal deferral | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 167 | 81 | 275 | 266 |
Consumer loan portfolio | Home equity | Principal reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 19 | 0 | 19 | 0 |
Consumer loan portfolio | Home equity | Interest rate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 168 | 87 | 168 | 115 |
Consumer loan portfolio | Home equity | Forbearance agreement | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 0 | 0 | 0 | 0 |
Owner-occupied | Commercial loan portfolio | Commercial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | $ 424 | $ 563 | $ 4,623 | $ 1,771 |
Total number of loans (in loan) | loan | 4 | 6 | 9 | 8 |
Pre-modification recorded investment | $ 436 | $ 575 | $ 4,649 | $ 1,783 |
Owner-occupied | Commercial loan portfolio | Commercial | Principal deferral | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 156 | 370 | 2,863 | 370 |
Owner-occupied | Commercial loan portfolio | Commercial | Principal reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 0 | 0 | 103 | 0 |
Owner-occupied | Commercial loan portfolio | Commercial | Interest rate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 268 | 162 | 297 | 888 |
Owner-occupied | Commercial loan portfolio | Commercial | Forbearance agreement | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 0 | $ 31 | 1,360 | 513 |
Non-owner occupied | Commercial loan portfolio | Commercial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | $ 140 | $ 140 | $ 68 | |
Total number of loans (in loan) | loan | 1 | 1 | 1 | |
Pre-modification recorded investment | $ 154 | $ 154 | $ 74 | |
Non-owner occupied | Commercial loan portfolio | Commercial | Principal deferral | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 0 | 0 | 68 | |
Non-owner occupied | Commercial loan portfolio | Commercial | Principal reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 0 | 0 | 0 | |
Non-owner occupied | Commercial loan portfolio | Commercial | Interest rate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 140 | 140 | 0 | |
Non-owner occupied | Commercial loan portfolio | Commercial | Forbearance agreement | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 0 | 0 | $ 0 | |
Vacant land | Commercial loan portfolio | Commercial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | $ 244 | $ 266 | ||
Total number of loans (in loan) | loan | 1 | 2 | ||
Pre-modification recorded investment | $ 269 | $ 293 | ||
Vacant land | Commercial loan portfolio | Commercial | Principal deferral | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 0 | 22 | ||
Vacant land | Commercial loan portfolio | Commercial | Principal reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 0 | 0 | ||
Vacant land | Commercial loan portfolio | Commercial | Interest rate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | 0 | 0 | ||
Vacant land | Commercial loan portfolio | Commercial | Forbearance agreement | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Post-modification recorded investment | $ 244 | $ 244 |
Loans - Summary of TDRs (Detail
Loans - Summary of TDRs (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | $ 77,776 | $ 73,655 |
Commercial loan portfolio | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 62,075 | 56,851 |
Consumer loan portfolio | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 15,701 | 16,804 |
Accruing TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 47,853 | 45,580 |
Accruing TDRs | Commercial loan portfolio | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 35,549 | 32,508 |
Accruing TDRs | Consumer loan portfolio | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 12,304 | 13,072 |
Nonaccrual TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 29,923 | 28,075 |
Nonaccrual TDRs | Commercial loan portfolio | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 26,526 | 24,343 |
Nonaccrual TDRs | Consumer loan portfolio | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | $ 3,397 | $ 3,732 |
Loans - TDRs with a Payment Def
Loans - TDRs with a Payment Default During the Period (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans (in loan) | loan | 9 | 2 | 11 | |
Principal balance | $ | $ 109 | $ 29 | $ 194 | |
Commercial loan portfolio | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans (in loan) | loan | 0 | 2 | 0 | 3 |
Principal balance | $ | $ 0 | $ 67 | $ 0 | $ 149 |
Consumer loan portfolio | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans (in loan) | loan | 2 | 7 | 2 | 8 |
Principal balance | $ | $ 29 | $ 42 | $ 29 | $ 45 |
Loans - Allowance for Loan Loss
Loans - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ||||||
Beginning balance | $ 109,984 | |||||
Ending balance | $ 115,967 | 115,967 | ||||
Allowance for loan losses | ||||||
Loans individually evaluated for impairment | $ 11,018 | $ 6,804 | ||||
Loans collectively evaluated for impairment | 104,949 | 102,760 | ||||
Loans accounted for under ASC 310-30 | 0 | 420 | ||||
Total allowance for loan losses | 115,967 | 115,967 | 115,967 | 109,984 | ||
Recorded investment (loan balance) | ||||||
Loans individually evaluated for impairment | 145,701 | 130,873 | ||||
Loans collectively evaluated for impairment | 12,725,409 | 11,713,883 | ||||
Loans acquired with deteriorated credit quality | 2,990,793 | 3,425,023 | ||||
Total loans | 15,861,903 | 15,269,779 | ||||
Commercial loan portfolio | ||||||
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ||||||
Beginning balance | 83,179 | |||||
Ending balance | 87,900 | 87,900 | ||||
Allowance for loan losses | ||||||
Loans individually evaluated for impairment | 9,763 | 5,474 | ||||
Loans collectively evaluated for impairment | 78,137 | 77,285 | ||||
Loans accounted for under ASC 310-30 | 0 | 420 | ||||
Total allowance for loan losses | 87,900 | 87,900 | 87,900 | 83,179 | ||
Recorded investment (loan balance) | ||||||
Loans individually evaluated for impairment | 120,859 | 105,038 | ||||
Loans collectively evaluated for impairment | 7,925,930 | 7,268,932 | ||||
Loans acquired with deteriorated credit quality | 1,849,066 | 2,137,897 | ||||
Total loans | 9,895,855 | 9,511,867 | ||||
Consumer loan portfolio | ||||||
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ||||||
Beginning balance | 26,805 | |||||
Ending balance | 28,067 | 28,067 | ||||
Allowance for loan losses | ||||||
Loans individually evaluated for impairment | 1,255 | 1,330 | ||||
Loans collectively evaluated for impairment | 26,812 | 25,475 | ||||
Loans accounted for under ASC 310-30 | 0 | 0 | ||||
Total allowance for loan losses | 28,067 | 28,067 | 28,067 | 26,805 | ||
Recorded investment (loan balance) | ||||||
Loans individually evaluated for impairment | 24,842 | 25,835 | ||||
Loans collectively evaluated for impairment | 4,799,479 | 4,444,951 | ||||
Loans acquired with deteriorated credit quality | 1,141,727 | 1,287,126 | ||||
Total loans | 5,966,048 | 5,757,912 | ||||
Acquired Loan Portfolio [Member] | ||||||
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ||||||
Beginning balance | 0 | 420 | ||||
Provision for loan losses | 0 | (420) | ||||
Charge-offs | 0 | 0 | ||||
Recoveries | 0 | 0 | ||||
Ending balance | 0 | 0 | ||||
Allowance for loan losses | ||||||
Total allowance for loan losses | 0 | 420 | 0 | 420 | ||
Acquired Loan Portfolio [Member] | Commercial loan portfolio | ||||||
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ||||||
Beginning balance | 0 | 420 | ||||
Provision for loan losses | 0 | (420) | ||||
Charge-offs | 0 | 0 | ||||
Recoveries | 0 | 0 | ||||
Ending balance | 0 | 0 | ||||
Allowance for loan losses | ||||||
Total allowance for loan losses | 0 | 0 | 0 | 420 | ||
Acquired Loan Portfolio [Member] | Consumer loan portfolio | ||||||
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ||||||
Beginning balance | 0 | 0 | ||||
Provision for loan losses | 0 | 0 | ||||
Charge-offs | 0 | 0 | ||||
Recoveries | 0 | 0 | ||||
Ending balance | 0 | 0 | ||||
Allowance for loan losses | ||||||
Total allowance for loan losses | 0 | 0 | 0 | 0 | ||
Originated Loan Portfolio | ||||||
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ||||||
Beginning balance | 110,284 | $ 94,762 | 109,564 | $ 91,887 | ||
Provision for loan losses | 7,502 | 9,572 | 9,981 | 15,828 | ||
Charge-offs | (3,624) | (5,726) | (6,829) | (10,550) | ||
Recoveries | 1,805 | 1,407 | 3,251 | 2,850 | ||
Ending balance | 115,967 | 100,015 | 115,967 | 100,015 | ||
Allowance for loan losses | ||||||
Total allowance for loan losses | 110,284 | 94,762 | 109,564 | 91,887 | 115,967 | 109,564 |
Originated Loan Portfolio | Commercial loan portfolio | ||||||
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ||||||
Beginning balance | 84,010 | 67,744 | 82,759 | 66,133 | ||
Provision for loan losses | 4,848 | 7,923 | 6,712 | 11,323 | ||
Charge-offs | (2,013) | (3,890) | (3,447) | (6,484) | ||
Recoveries | 1,055 | 888 | 1,876 | 1,693 | ||
Ending balance | 87,900 | 72,665 | 87,900 | 72,665 | ||
Allowance for loan losses | ||||||
Total allowance for loan losses | 84,010 | 67,744 | 82,759 | 66,133 | 87,900 | 82,759 |
Originated Loan Portfolio | Consumer loan portfolio | ||||||
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ||||||
Beginning balance | 26,274 | 27,018 | 26,805 | 25,754 | ||
Provision for loan losses | 2,654 | 1,649 | 3,269 | 4,505 | ||
Charge-offs | (1,611) | (1,836) | (3,382) | (4,066) | ||
Recoveries | 750 | 519 | 1,375 | 1,157 | ||
Ending balance | 28,067 | 27,350 | 28,067 | 27,350 | ||
Allowance for loan losses | ||||||
Total allowance for loan losses | $ 26,274 | $ 27,018 | $ 28,067 | $ 25,754 | $ 28,067 | $ 26,805 |
Other Real Estate Owned and R_3
Other Real Estate Owned and Repossessed Assets - Rollforward Tables (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Repossessed Assets [Line Items] | |||||
Cumulative effect adjustment of change in accounting policy, net of tax impact | [1] | $ 1,339 | |||
Changes in other real estate owned | |||||
Balance at the beginning of the period | $ 5,832 | $ 8,182 | |||
Transfers | (189) | ||||
Other additions | 5,420 | 2,448 | |||
Net payments received | (214) | (139) | |||
Disposals | (2,372) | (4,642) | |||
Write-downs | (729) | (783) | |||
Balance at the end of the period | 7,937 | 4,877 | |||
Changes in repossessed assets | |||||
Balance at the beginning of the period | 424 | 625 | |||
Transfers | 0 | ||||
Other additions | 1,309 | 2,645 | |||
Net payments received | 0 | 0 | |||
Disposals | (1,403) | (2,319) | |||
Write-downs | 0 | 0 | |||
Balance at the end of the period | 330 | $ 951 | |||
Retained earnings | |||||
Repossessed Assets [Line Items] | |||||
Cumulative effect adjustment of change in accounting policy, net of tax impact | [1] | $ 1,680 | |||
ASU 2014-09 | |||||
Repossessed Assets [Line Items] | |||||
Loans to facilitate reclassified to loans | $ 1,100 | ||||
ASU 2014-09 | Retained earnings | |||||
Repossessed Assets [Line Items] | |||||
Cumulative effect adjustment of change in accounting policy, net of tax impact | $ 900 | ||||
[1] | Refer to Note 1 , Basis of Presentation and Significant Accounting Policies, Note 6 , Other Real Estate Owned and Repossessed Assets and Note 20 , Accumulated Other Comprehensive Loss for further details on the changes in accounting policy. |
Other Real Estate Owned and R_4
Other Real Estate Owned and Repossessed Assets - Textual (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Other Real Estate [Abstract] | ||
Other real estate owned and repossessed assets acquired in accordance with ASU 2014-04 | $ 1.9 | |
Residential mortgage loans in process of foreclosure | $ 3.6 | $ 4.5 |
Other Real Estate Owned and R_5
Other Real Estate Owned and Repossessed Assets - Income and Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income and expenses related to other real estate owned | ||||
Net gain (loss) on sale | $ 824 | $ 23 | $ 1,568 | $ 779 |
Write-downs | (435) | (132) | (729) | (783) |
Net operating expenses | (248) | (318) | (555) | (715) |
Total | 141 | (427) | 284 | (719) |
Income and expenses related to repossessed assets | ||||
Net gain (loss) on sale | (14) | (60) | (32) | (94) |
Write-downs | 0 | 0 | 0 | 0 |
Net operating expenses | (2) | (2) | (5) | (3) |
Total | $ (16) | $ (62) | $ (37) | $ (97) |
Goodwill (Details)
Goodwill (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 1,134,568,000 | $ 1,134,568,000 |
Goodwill impairment | $ 0 |
Loan Servicing Rights - LSRs Ac
Loan Servicing Rights - LSRs Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Activity for loan servicing rights and the related fair value changes | ||||
Fair value, beginning of period | $ 64,701 | $ 68,837 | $ 71,013 | $ 63,841 |
Additions from loans sold with servicing retained | 2,109 | 2,284 | 4,242 | 4,251 |
Changes in fair value due to: | ||||
Reductions from pay-offs, pay downs and run-off | (695) | (727) | (1,494) | (1,450) |
Changes in estimates of fair value | (5,457) | (30) | (13,103) | 3,722 |
Fair value, end of period | 60,658 | 70,364 | 60,658 | 70,364 |
Principal balance of loans serviced | 6,775,213 | 6,988,846 | 6,775,213 | 6,988,846 |
Commercial Real Estate | ||||
Activity for loan servicing rights and the related fair value changes | ||||
Fair value, beginning of period | 559 | 441 | 451 | 427 |
Additions from loans sold with servicing retained | 0 | 45 | 138 | 88 |
Changes in fair value due to: | ||||
Reductions from pay-offs, pay downs and run-off | (34) | (29) | (64) | (58) |
Changes in estimates of fair value | 0 | 0 | 0 | 0 |
Fair value, end of period | 525 | 457 | 525 | 457 |
Principal balance of loans serviced | 43,657 | 42,490 | 43,657 | 42,490 |
Mortgage | ||||
Activity for loan servicing rights and the related fair value changes | ||||
Fair value, beginning of period | 64,142 | 68,396 | 70,562 | 63,414 |
Additions from loans sold with servicing retained | 2,109 | 2,239 | 4,104 | 4,163 |
Changes in fair value due to: | ||||
Reductions from pay-offs, pay downs and run-off | (661) | (698) | (1,430) | (1,392) |
Changes in estimates of fair value | (5,457) | (30) | (13,103) | 3,722 |
Fair value, end of period | 60,133 | 69,907 | 60,133 | 69,907 |
Principal balance of loans serviced | $ 6,731,556 | $ 6,946,356 | $ 6,731,556 | $ 6,946,356 |
Loan Servicing Rights - Assumpt
Loan Servicing Rights - Assumptions Used in Determining Fair Value (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Loan servicing rights | |||||
Loan servicing fee income | $ 4,200,000 | $ 4,400,000 | $ 8,400,000 | $ 9,000,000 | |
Mortgage | |||||
Loan servicing rights | |||||
WA cost to service/per year | 66 | $ 66 | |||
WA ancillary income/per year | $ 31 | $ 31 | |||
WA float range | 2.40% | ||||
Mortgage | Weighted Average | |||||
Loan servicing rights | |||||
WA float range | 2.50% | ||||
Prepayment rate | Mortgage | Minimum | |||||
Loan servicing rights | |||||
Measurement input | 0.060 | 0.060 | 0 | ||
Prepayment rate | Mortgage | Maximum | |||||
Loan servicing rights | |||||
Measurement input | 0.297 | 0.297 | 0.264 | ||
Discount rate | Mortgage | Weighted Average | |||||
Loan servicing rights | |||||
Measurement input | 0.101 | 0.101 | 0.101 |
Core Deposit Intangibles - Inta
Core Deposit Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying amount, accumulated amortization and amortization expense of core deposit intangible assets | ||
Total intangible assets | $ 25,835 | $ 28,556 |
Core deposit intangible assets | ||
Carrying amount, accumulated amortization and amortization expense of core deposit intangible assets | ||
Gross original amount | 56,456 | 56,456 |
Accumulated amortization | 30,621 | 27,900 |
Total intangible assets | $ 25,835 | $ 28,556 |
Core Deposit Intangibles - Text
Core Deposit Intangibles - Textual (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ (2,721) | $ (2,864) | ||
Core deposit intangible assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average amortization period | 6 years 1 month 6 days | |||
Amortization of intangible assets | $ (1,400) | $ (1,400) | $ (2,700) | $ (2,900) |
Core Deposit Intangibles - Futu
Core Deposit Intangibles - Future Amortization Expense (Details) - Core deposit intangible assets $ in Thousands | Jun. 30, 2019USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2019 | $ 2,722 |
2020 | 4,851 |
2021 | 4,471 |
2022 | 4,218 |
2023 | 3,591 |
2024 and thereafter | $ 5,982 |
Derivative Instruments and Ba_3
Derivative Instruments and Balance Sheet Offsetting - Notional Amount and Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative instruments | ||
Notional Amount | $ 4,403,278 | $ 3,516,418 |
Gross Derivative Assets | 73,068 | 38,595 |
Gross Derivative Liabilities | 97,179 | 32,379 |
Credit valuation adjustments for counterparty credit risk | 1,500 | 901 |
Derivatives designated as hedging instruments: | ||
Derivative instruments | ||
Notional Amount | 1,145,000 | 820,000 |
Gross Derivative Assets | 606 | 10,148 |
Gross Derivative Liabilities | 25,060 | 3,278 |
Derivatives designated as hedging instruments: | Interest rate swaps | ||
Derivative instruments | ||
Notional Amount | 1,145,000 | 820,000 |
Gross Derivative Assets | 606 | 10,148 |
Gross Derivative Liabilities | 25,060 | 3,278 |
Derivatives not designated as hedging | Total customer-initiated and mortgage banking derivatives | ||
Derivative instruments | ||
Notional Amount | 3,258,278 | 2,696,418 |
Gross Derivative Assets | 72,462 | 28,447 |
Gross Derivative Liabilities | 72,119 | 29,101 |
Derivatives not designated as hedging | Customer-initiated derivatives | ||
Derivative instruments | ||
Notional Amount | 2,908,127 | 2,477,640 |
Gross Derivative Assets | 69,024 | 26,680 |
Gross Derivative Liabilities | 70,707 | 27,664 |
Derivatives not designated as hedging | Forward contracts related to mortgage loans to be delivered for sale | ||
Derivative instruments | ||
Notional Amount | 165,772 | 127,159 |
Gross Derivative Assets | 0 | 0 |
Gross Derivative Liabilities | 661 | 719 |
Derivatives not designated as hedging | Interest rate lock commitments | ||
Derivative instruments | ||
Notional Amount | 149,084 | 54,848 |
Gross Derivative Assets | 2,687 | 1,049 |
Gross Derivative Liabilities | 0 | 0 |
Derivatives not designated as hedging | Power Equity CD | ||
Derivative instruments | ||
Notional Amount | 35,295 | 36,771 |
Gross Derivative Assets | 751 | 718 |
Gross Derivative Liabilities | $ 751 | $ 718 |
Derivative Instruments and Ba_4
Derivative Instruments and Balance Sheet Offsetting - Net Gains (Losses) Related to Changes in Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative instruments | ||||
Total gain (loss) recognized in income | $ 512 | $ 229 | $ 997 | $ 738 |
Forward contracts related to mortgage loans to be delivered for sale | Net gain on sale of loans and other mortgage banking revenue | ||||
Derivative instruments | ||||
Total gain (loss) recognized in income | (8) | (21) | 58 | (391) |
Interest rate lock commitments | Net gain on sale of loans and other mortgage banking revenue | ||||
Derivative instruments | ||||
Total gain (loss) recognized in income | 929 | 211 | 1,638 | 763 |
Customer-initiated derivatives | Other noninterest income | ||||
Derivative instruments | ||||
Total gain (loss) recognized in income | (409) | 39 | (699) | 366 |
Power Equity CD | Other noninterest income | ||||
Derivative instruments | ||||
Total gain (loss) recognized in income | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments and Ba_5
Derivative Instruments and Balance Sheet Offsetting - Net Gains (Losses) Recorded in Other Comprehensive Income and the Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative instruments | ||||
Unrealized losses on interest rate swaps expected to be reclassified during next twelve months | $ 2,200 | $ 2,200 | ||
Interest rate swaps | Derivatives designated as hedging instruments: | ||||
Derivative instruments | ||||
Amount of gain (loss) recognized in other comprehensive income | (21,229) | $ 4,102 | (28,781) | $ 12,065 |
Amount of gain (loss) reclassified from other comprehensive income to interest income or expense | $ 1,256 | $ 589 | $ 2,544 | $ 347 |
Derivative Instruments and Ba_6
Derivative Instruments and Balance Sheet Offsetting - Balance Sheet Offsetting (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Offsetting derivative assets | ||
Gross amounts recognized | $ 73,068 | $ 38,595 |
Offsetting derivative liabilities | ||
Gross amounts recognized | 97,179 | 32,379 |
Interest rate swaps and customer-initiated derivatives | ||
Offsetting derivative assets | ||
Gross amounts recognized | 69,553 | 36,791 |
Gross amounts offset in the statements of financial condition | 0 | 0 |
Net amounts presented in the statements of financial position | 69,553 | 36,791 |
Gross amounts not offset in the statements of financial position | ||
Financial instruments | 0 | 0 |
Collateral (received)/posted | 0 | (16,120) |
Net Amount | 69,553 | 20,671 |
Offsetting derivative liabilities | ||
Gross amounts recognized | 95,492 | 30,822 |
Gross amounts offset in the statements of financial condition | 0 | 0 |
Net amounts presented in the statements of financial position | 95,492 | 30,822 |
Gross amounts not offset in the statements of financial position | ||
Financial instruments | 0 | 0 |
Collateral (received)/posted | 37,291 | 430 |
Net Amount | $ 58,201 | $ 30,392 |
Investments in Qualified Affo_2
Investments in Qualified Affordable Housing Projects, Federal Historic Projects and New Market Tax Credits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||||
Expense related to qualified affordable housing projects | $ 1,600 | $ 1,100 | $ 3,300 | $ 2,100 | |
Remaining investment in qualified affordable housing projects | 85,800 | 85,800 | $ 84,900 | ||
Equity method investments | 32,100 | 32,100 | 13,300 | ||
Remaining unfunded equity contributions | $ 73,400 | 73,400 | $ 72,000 | ||
Investment tax credit | 1,900 | 260 | 3,400 | ||
Impairment on tax credit projects | 1,700 | 271 | 3,400 | ||
Other Noninterest Expense [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Impairment on tax credit projects | $ 1,400 | $ 214 | $ 2,600 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Real property leases not yet commenced | $ 247,400 | $ 247,400 | |
Operating lease liability incurred for right of use asset | 877 | 6,700 | |
Operating lease payments | 2,000 | 4,000 | |
Right of use assets | 40,500 | 40,500 | |
Operating lease liability | 41,403 | 41,403 | |
2019 | $ 7,300 | ||
2020 | 6,200 | ||
2021 | 5,100 | ||
2022 | 4,800 | ||
2023 | 4,400 | ||
2024 | 12,100 | ||
Premises and equipment | 123,708 | 123,708 | $ 123,442 |
Underlying assets under operating leases | $ 15,100 | $ 15,100 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 1 year | 1 year | |
Renewal term | 3 years | 3 years | |
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 15 years | 15 years | |
Renewal term | 5 years | 5 years | |
Affiliated Entity | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 22 years 6 months | 22 years 6 months | |
Real property leases not yet commenced | $ 231,600 | $ 231,600 | |
Ownership interest | 50.00% | 50.00% |
Leases - Supplemental Lease Inf
Leases - Supplemental Lease Information (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease terms (in years) | 7 years 10 months 6 days |
Weighted-average discount rate | 3.10% |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,050 | $ 3,964 |
Variable lease cost | 247 | 454 |
Sublease income | (56) | (111) |
Total lease cost | $ 2,241 | $ 4,307 |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Leases | |
Remainder of 2019 | $ 4,081 |
2020 | 7,490 |
2021 | 7,083 |
2022 | 6,149 |
2023 | 5,017 |
Thereafter | 17,041 |
Total | 46,861 |
Less: Present value discount | 5,458 |
Lease liability | $ 41,403 |
Leases - Components of Lease In
Leases - Components of Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Lease income - operating leases | $ 169 | $ 363 |
Total lease income | $ 169 | $ 363 |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees - Commitments (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||
Potential losses from standby letters of credit | $ 329,000 | $ 0 |
Undisbursed loan commitments | 537,600,000 | 493,300,000 |
Probable credit losses | 1,900,000 | 1,700,000 |
Financial and Performance Standby Letters of Credit | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | 123,700,000 | 119,000,000 |
Commitments to Extend Credit | ||
Loss Contingencies [Line Items] | ||
Loan commitments under financial guarantee | 3,820,000,000 | 3,550,000,000 |
Performance Guarantee | ||
Loss Contingencies [Line Items] | ||
Recourse liability | 100,000 | 100,000 |
SBA Guaranteed Notes | Performance Guarantee | ||
Loss Contingencies [Line Items] | ||
Recourse liability | $ 891,000 | $ 1,200,000 |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees - Contingencies and Guarantees (Details) - Performance Guarantee - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||
Recorded liability | $ 12,800 | $ 11,600 |
Maximum potential amount of undiscounted future payments | 12,600 | 11,400 |
Recourse liability | 100 | 100 |
SBA Guaranteed Notes | ||
Loss Contingencies [Line Items] | ||
Maximum potential amount of undiscounted future payments | 17,900 | 19,100 |
Recourse liability | $ 891 | $ 1,200 |
Commitments, Contingencies an_5
Commitments, Contingencies and Guarantees - Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Changes in the activity related to liability recorded in connection with representations and warranties | ||||||
Reserve balance at beginning of period | $ 3,983 | $ 5,105 | $ 4,084 | $ 5,349 | ||
Reserve reduction | (807) | (243) | (908) | (487) | ||
Charge-offs | 0 | (2) | 0 | (2) | ||
Ending reserve balance | 3,176 | 4,860 | 3,176 | 4,860 | ||
Reserve balance | ||||||
Liability for specific claims | $ 454 | $ 398 | ||||
General allowance | 2,722 | 3,686 | ||||
Total reserve balance | $ 3,983 | $ 5,105 | $ 4,084 | $ 5,349 | $ 3,176 | $ 4,084 |
Borrowings and Other Short-Te_3
Borrowings and Other Short-Term Liabilities - Short/Long-term and Other Short-term Borrowings (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Short-term borrowings: | ||
Amount | $ 2,615,000 | $ 2,035,000 |
Weighted Average Rate | 2.44% | 2.47% |
Long-term borrowings: | ||
Amount | $ 426,069 | $ 426,002 |
Weighted Average Rate | 2.11% | 2.11% |
Total borrowings | $ 3,041,069 | $ 2,461,002 |
Total short-term and long-term borrowings, Weighted Average Rate | 2.39% | 2.41% |
FHLB advances: 2.29% - 2.60% fixed-rate notes | Minimum | ||
Long-term borrowings: | ||
Stated interest rate | 2.29% | |
FHLB advances: 2.29% - 2.60% fixed-rate notes | Maximum | ||
Long-term borrowings: | ||
Stated interest rate | 2.60% | |
AFX short-term borrowings | ||
Short-term borrowings: | ||
Amount | $ 35,000 | $ 0 |
Weighted Average Rate | 2.41% | 0.00% |
FHLB Advances | FHLB advances: 1.00% - 2.72% fixed-rate notes due 2019 to 2025 | ||
Long-term borrowings: | ||
Amount | $ 410,073 | $ 410,102 |
Weighted Average Rate | 2.00% | 2.00% |
Advances payable from Federal Home Loan Banks | $ 410,000 | $ 410,000 |
Purchase accounting premiums | $ 73 | 102 |
FHLB Advances | FHLB advances: 1.00% - 2.72% fixed-rate notes due 2019 to 2025 | Minimum | ||
Long-term borrowings: | ||
Stated interest rate | 1.00% | |
FHLB Advances | FHLB advances: 1.00% - 2.72% fixed-rate notes due 2019 to 2025 | Maximum | ||
Long-term borrowings: | ||
Stated interest rate | 2.72% | |
Subordinated debt obligations | Subordinated debt obligations: floating-rate based on three-month LIBOR plus 1.45% - 2.85% due 2034 to 2035 | ||
Long-term borrowings: | ||
Amount | $ 11,648 | $ 11,572 |
Weighted Average Rate | 4.71% | 4.85% |
Advances payable | $ 15,000 | $ 15,000 |
Purchase accounting discounts | $ 3,400 | 3,400 |
Subordinated debt obligations | Subordinated debt obligations: floating-rate based on three-month LIBOR plus 1.45% - 2.85% due 2034 to 2035 | Minimum | ||
Long-term borrowings: | ||
Spread on variable rate | 1.45% | |
Subordinated debt obligations | Subordinated debt obligations: floating-rate based on three-month LIBOR plus 1.45% - 2.85% due 2034 to 2035 | Maximum | ||
Long-term borrowings: | ||
Spread on variable rate | 2.85% | |
Subordinated debt obligations | Subordinated debt obligations: floating-rate based on three-month LIBOR plus 3.25% due in 2032 | ||
Long-term borrowings: | ||
Amount | $ 4,348 | $ 4,328 |
Weighted Average Rate | 5.84% | 5.65% |
Spread on variable rate | 3.25% | |
Advances payable | $ 5,000 | $ 5,000 |
Purchase accounting discounts | 652 | 672 |
Collateralized customer deposits | ||
Short-term borrowings: | ||
Amount | $ 291,671 | $ 382,687 |
Weighted Average Rate | 0.70% | 0.75% |
FHLB Advances | FHLB advances: 2.29% - 2.60% fixed-rate notes | ||
Short-term borrowings: | ||
Amount | $ 2,580,000 | $ 2,035,000 |
Weighted Average Rate | 2.44% | 2.47% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | $ 38,164 | $ 38,018 | $ 63,021 | $ 78,572 |
Noninterest expense | 111,003 | 104,561 | 220,018 | 206,171 |
Noninterest income from contracts with customers within the scope of ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 5,551 | 7,119 | 11,065 | 14,764 |
Service charges and fees on deposit accounts | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 2,986 | 4,462 | 5,983 | 8,925 |
Wealth management revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 1,321 | 1,268 | 2,621 | 2,052 |
Other charges and fees for customer services | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 1,244 | 1,389 | 2,461 | 3,787 |
Noninterest income within the scope of other GAAP topics | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income | 32,613 | 30,899 | 51,956 | 63,808 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest expense | $ 810 | $ 38 | $ 1,536 | $ 684 |
Borrowings and Other Short-Te_4
Borrowings and Other Short-Term Liabilities - Textual (Details) $ in Millions | Jun. 30, 2019USD ($) |
Debt Disclosure [Abstract] | |
FHLB advances | $ 7,700 |
Additional borrowing available through FHLB | $ 25 |
Share-Based Compensation - Text
Share-Based Compensation - Textual (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($) | May 07, 2019shares | Dec. 31, 2018USD ($) | |
Share-based Compensation Plans (Textual) | ||||||
Share-based compensation expense | $ 2,800 | $ 2,400 | $ 5,100 | $ 4,100 | ||
Excess tax benefit from share-based compensation transactions | $ (16) | $ 399 | 306 | 1,800 | ||
Cash received from option exercises | $ 338 | $ 2,200 | ||||
Stock Incentive Plan of 2019 | ||||||
Share-based Compensation Plans (Textual) | ||||||
Number of shares authorized under stock incentive plan (in shares) | shares | 2,400,000 | |||||
Common stock available for future grants under share-based compensation plans (in shares) | shares | 2,388,937 | 2,388,937 | ||||
Stock Incentive Plans After 2012 | ||||||
Share-based Compensation Plans (Textual) | ||||||
Vesting period | 5 years | |||||
Stock options | ||||||
Share-based Compensation Plans (Textual) | ||||||
Stock option award vesting period | 10 years | |||||
Outstanding in-the-money stock options, intrinsic value | $ 19,800 | $ 19,800 | $ 26,600 | |||
Restricted stock units | ||||||
Share-based Compensation Plans (Textual) | ||||||
Corporation granted options to purchase restricted stock performance units (in shares) | shares | 379,260 | |||||
Stock issued from exercises (in shares) | shares | 123,686 | |||||
Unrecognized compensation expense | 27,600 | $ 27,600 | ||||
Unrecognized compensation expense, period for recognition | 3 years 6 months | |||||
Restricted stock units | Minimum | ||||||
Share-based Compensation Plans (Textual) | ||||||
Restricted stock performance units eligible to vest as a multiple of number of units granted | 0.5 | |||||
Restricted stock units | Maximum | ||||||
Share-based Compensation Plans (Textual) | ||||||
Restricted stock performance units eligible to vest as a multiple of number of units granted | 1.5 | |||||
Equity Option | ||||||
Share-based Compensation Plans (Textual) | ||||||
Weighted-average remaining contractual terms for outstanding stock options | 5 years 2 months 12 days | |||||
Weighted-average remaining contractual terms for exercisable stock options | 4 years 9 months 18 days | |||||
Outstanding in-the-money stock options, intrinsic value | 7,500 | $ 7,500 | ||||
Exercisable in-the-money stock options, intrinsic value | $ 6,800 | $ 6,800 | ||||
Closing price of common stock (dollars per share) | $ / shares | $ 41.11 | $ 41.11 | ||||
Unrecognized compensation expense | $ 901 | $ 901 | ||||
Unrecognized compensation expense, period for recognition | 2 years 1 month 6 days |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - Stock Options | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Non-Vested Stock Options Outstanding, Number of Options | |
Vested (in shares) | shares | 0 |
Non-Vested Stock Options Outstanding, Weighted- Average Grant Date Fair Value Per Share | |
Beginning balance (dollars per share) | $ 7.16 |
Vested (dollars per share) | 6.98 |
Forfeited/expired (dollars per share) | 6.82 |
Ending balance (dollars per share) | $ 7.33 |
Stock Options Outstanding, Number of Options | |
Beginning balance (in shares) | shares | 777,443 |
Exercised (in shares) | shares | (97,284) |
Ending balance (in shares) | shares | 648,285 |
Weighted- Average Exercise Price Per Share | |
Beginning balance, Weighted Average Exercise Price (dollars per share) | $ 31.42 |
Exercised, Weighted Average Exercise Price (dollars per share) | 29.69 |
Forfeited/expired, Weighted Average Exercise Price (dollars per share) | 36.40 |
Ending balance, Weighted Average Exercise Price (dollars per share) | $ 31.43 |
Exercisable/vested, Number of Options (in shares) | shares | 520,297 |
Exercisable/vested, Weighted Average Exercise Price (dollars per share) | $ 29.48 |
Vested, Weighted Average Exercise Price (dollars per share) | $ 0 |
Forfeited/expired (in shares) | shares | 31,874 |
Non Vested | |
Non-Vested Stock Options Outstanding, Number of Options | |
Beginning balance (in shares) | shares | 221,658 |
Vested (in shares) | shares | (65,104) |
Forfeited/expired (in shares) | shares | (28,566) |
Ending balance (in shares) | shares | 127,988 |
Stock Options Outstanding, Number of Options | |
Exercised (in shares) | shares | 0 |
Weighted- Average Exercise Price Per Share | |
Beginning balance, Weighted Average Exercise Price (dollars per share) | $ 38.37 |
Exercised, Weighted Average Exercise Price (dollars per share) | 0 |
Forfeited/expired, Weighted Average Exercise Price (dollars per share) | 36.40 |
Vested, Weighted Average Exercise Price (dollars per share) | 37.24 |
Ending balance, Weighted Average Exercise Price (dollars per share) | $ 39.38 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Unit and Award Activity (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Restricted Stock Units | |
Number of Units/Awards | |
Beginning balance (in shares) | shares | 576,490 |
Granted (in shares) | shares | 379,260 |
Converted into shares of common stock (in shares) | shares | (123,686) |
Forfeited/expired (in shares) | shares | (21,406) |
Ending balance (in shares) | shares | 810,658 |
Weighted-average grant-date fair value | |
Beginning balance (dollars per share) | $ / shares | $ 49.35 |
Granted (dollars per share) | $ / shares | 44.95 |
Converted into shares of common stock (dollars per share) | $ / shares | 38.83 |
Forfeited/expired (dollars per share) | $ / shares | 50.03 |
Ending balance (dollars per share) | $ / shares | $ 48.88 |
Restricted Stock Awards | |
Number of Units/Awards | |
Beginning balance (in shares) | shares | 40,852 |
Vested (in shares) | shares | (40,852) |
Ending balance (in shares) | shares | 0 |
Weighted-average grant-date fair value | |
Beginning balance (dollars per share) | $ / shares | $ 46.23 |
Vested (dollars per share) | $ / shares | 46.23 |
Ending balance (dollars per share) | $ / shares | $ 0 |
Retirement Plans - Net Periodic
Retirement Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Pension Plans | ||||
Components of net periodic benefit cost (income) for the Corporation's qualified and nonqualified pension plans and nonqualified postretirement benefits plan | ||||
Interest cost | $ 1,172 | $ 1,092 | $ 2,345 | $ 2,184 |
Expected return on plan assets | (2,190) | (2,220) | (4,381) | (4,439) |
Amortization of unrecognized net (gain) loss | 141 | 178 | 281 | 355 |
Net periodic benefit cost (income) | (877) | (950) | (1,755) | (1,900) |
Postretirement Benefit Plan | ||||
Components of net periodic benefit cost (income) for the Corporation's qualified and nonqualified pension plans and nonqualified postretirement benefits plan | ||||
Service cost | 0 | 1 | 1 | 1 |
Interest cost | 21 | 20 | 43 | 41 |
Amortization of unrecognized net (gain) loss | (45) | (36) | (90) | (71) |
Net periodic benefit cost (income) | $ (24) | $ (15) | $ (46) | $ (29) |
Retirement Plans - Textual (Det
Retirement Plans - Textual (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of Pension Plan assets in excess of recorded liability | $ 19,000 | $ 19,000 | ||
Maximum percent of participants' base compensation matched | 6.00% | |||
Employer total contribution amount | 2,400 | $ 2,000 | $ 4,800 | $ 4,800 |
Defined Benefit Pension Plans | Qualified Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate for pension plan expense | 4.32% | |||
Defined Benefit Pension Plans | Nonqualified Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Liability related to SERP plan | $ 333 | $ 333 |
Regulatory Capital and Reserv_3
Regulatory Capital and Reserve Requirements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Leverage Ratio | |||||
Cash dividends declared per common share (dollars per share) | $ 0.34 | $ 0.28 | $ 0.68 | $ 0.56 | |
Chemical Bank | |||||
Regulatory Capital | |||||
Risk weighted assets | $ 16,990,000 | $ 16,990,000 | $ 16,070,000 | ||
Total Capital to Risk-Weighted Assets | |||||
Actual Amount | $ 1,928,735 | $ 1,928,735 | $ 1,825,742 | ||
Actual Ratio | 11.30% | 11.30% | 11.40% | ||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 1,784,388 | $ 1,784,388 | $ 1,586,719 | ||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 10.50% | 10.50% | 9.90% | ||
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 1,699,417 | $ 1,699,417 | $ 1,606,804 | ||
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% | 10.00% | ||
Tier 1 Capital to Risk-Weighted Assets | |||||
Actual Amount | $ 1,806,734 | $ 1,806,734 | $ 1,708,724 | ||
Actual Ratio | 10.60% | 10.60% | 10.60% | ||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 1,444,504 | $ 1,444,504 | $ 1,265,358 | ||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 8.50% | 8.50% | 7.90% | ||
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 1,359,534 | $ 1,359,534 | $ 1,285,444 | ||
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% | 8.00% | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets | |||||
Actual Amount | $ 1,806,734 | $ 1,806,734 | $ 1,708,724 | ||
Actual Ratio | 10.60% | 10.60% | 10.60% | ||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 1,189,592 | $ 1,189,592 | $ 1,024,338 | ||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 7.00% | 7.00% | 6.40% | ||
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 1,104,621 | $ 1,104,621 | $ 1,044,423 | ||
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% | 6.50% | ||
Leverage Ratio | |||||
Actual Amount | $ 1,806,734 | $ 1,806,734 | $ 1,708,724 | ||
Actual Ratio | 8.70% | 8.70% | 8.60% | ||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 832,372 | $ 832,372 | $ 792,184 | ||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 4.00% | 4.00% | 4.00% | ||
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 1,040,465 | $ 1,040,465 | $ 990,230 | ||
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% | 5.00% | ||
Corporation | |||||
Regulatory Capital | |||||
Risk weighted assets | $ 17,020,000 | $ 17,020,000 | $ 16,100,000 | ||
Total Capital to Risk-Weighted Assets | |||||
Actual Amount | $ 1,951,444 | $ 1,951,444 | $ 1,855,922 | ||
Actual Ratio | 11.50% | 11.50% | 11.50% | ||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 1,787,527 | $ 1,787,527 | $ 1,590,323 | ||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 10.50% | 10.50% | 9.90% | ||
Tier 1 Capital to Risk-Weighted Assets | |||||
Actual Amount | $ 1,813,446 | $ 1,813,446 | $ 1,723,004 | ||
Actual Ratio | 10.70% | 10.70% | 10.70% | ||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 1,447,046 | $ 1,447,046 | $ 1,268,232 | ||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 8.50% | 8.50% | 7.90% | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets | |||||
Actual Amount | $ 1,813,446 | $ 1,813,446 | $ 1,723,004 | ||
Actual Ratio | 10.70% | 10.70% | 10.70% | ||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 1,191,685 | $ 1,191,685 | $ 1,026,664 | ||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 7.00% | 7.00% | 6.40% | ||
Leverage Ratio | |||||
Actual Amount | $ 1,813,446 | $ 1,813,446 | $ 1,723,004 | ||
Actual Ratio | 8.70% | 8.70% | 8.70% | ||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 833,418 | $ 833,418 | $ 793,669 | ||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 4.00% | 4.00% | 4.00% |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 69,594 | $ 68,988 | $ 132,536 | $ 140,584 |
Net income allocated to participating securities | 0 | 40 | 24 | 105 |
Net income allocated to common shareholders | $ 69,594 | $ 68,948 | $ 132,512 | $ 140,479 |
Weighted average common shares - issued (in shares) | 71,554,000 | 71,371,000 | 71,526,000 | 71,334,000 |
Average unvested restricted share awards (in shares) | 0 | (42,000) | (12,000) | (54,000) |
Weighted average common shares outstanding - basic (in shares) | 71,554,000 | 71,329,000 | 71,514,000 | 71,280,000 |
Effect of dilutive securities | ||||
Weighted average common stock equivalents (in shares) | 718,000 | 697,000 | 693,000 | 686,000 |
Weighted average common shares outstanding - diluted (in shares) | 72,272,000 | 72,026,000 | 72,207,000 | 71,966,000 |
EPS available to common shareholders | ||||
Basic earnings per common share (dollars per share) | $ 0.97 | $ 0.97 | $ 1.85 | $ 1.97 |
Diluted earnings per common share (dollars per share) | 0.96 | 0.96 | 1.84 | 1.95 |
Average stock valuation (dollars per share) | $ 41.46 | $ 56.46 | $ 42.33 | $ 56.35 |
Stock Option | ||||
Schedule Of Earnings Per Share By Common Class [Line Items] | ||||
Average number of exercisable employee stock option awards that were not included in the computation of diluted earnings per common share (in shares) | 41,695 | 59,303 | 46,940 | 65,114 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | ||
Components of accumulated other comprehensive income (loss), net of related tax benefit/expense | ||||||
Beginning balance | $ 2,897,509 | $ 2,704,703 | $ 2,836,260 | $ 2,668,749 | ||
Cumulative effect adjustment of change in accounting policy, net of tax impact | [1] | $ 1,339 | ||||
Other comprehensive income (loss) before reclassifications | 12,308 | (5,942) | 35,923 | (21,460) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (4,202) | (355) | (5,214) | (52) | ||
Other comprehensive income (loss), net of tax | 8,106 | (6,297) | 30,709 | (21,512) | ||
Ending balance | 2,953,535 | 2,750,999 | 2,953,535 | 2,750,999 | ||
Unrealized gains (losses) on securities carried at fair value, net of tax | ||||||
Components of accumulated other comprehensive income (loss), net of related tax benefit/expense | ||||||
Beginning balance | (8,260) | (32,501) | (37,772) | (10,348) | ||
Cumulative effect adjustment of change in accounting policy, net of tax impact | (344) | |||||
Beginning balance, adjusted | (10,692) | |||||
Other comprehensive income (loss) before reclassifications | 29,079 | (9,182) | 58,660 | (30,991) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (3,286) | (2) | (3,355) | (2) | ||
Other comprehensive income (loss), net of tax | 25,793 | (9,184) | 55,305 | (30,993) | ||
Ending balance | 17,533 | (41,685) | 17,533 | (41,685) | ||
Defined Benefit Pension Plan, net of tax | ||||||
Components of accumulated other comprehensive income (loss), net of related tax benefit/expense | ||||||
Beginning balance | (28,691) | (19,696) | (28,766) | (19,808) | ||
Cumulative effect adjustment of change in accounting policy, net of tax impact | 0 | |||||
Beginning balance, adjusted | (19,808) | |||||
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 76 | 112 | 151 | 224 | ||
Other comprehensive income (loss), net of tax | 76 | 112 | 151 | 224 | ||
Ending balance | (28,615) | (19,584) | (28,615) | (19,584) | ||
Unrealized gains (losses) on cash flow hedges, net of tax | ||||||
Components of accumulated other comprehensive income (loss), net of related tax benefit/expense | ||||||
Beginning balance | (1,556) | 11,143 | 5,428 | 4,658 | ||
Cumulative effect adjustment of change in accounting policy, net of tax impact | 3 | |||||
Beginning balance, adjusted | 4,661 | |||||
Other comprehensive income (loss) before reclassifications | (16,771) | 3,240 | (22,737) | 9,531 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (992) | (465) | (2,010) | (274) | ||
Other comprehensive income (loss), net of tax | (17,763) | 2,775 | (24,747) | 9,257 | ||
Ending balance | (19,319) | 13,918 | (19,319) | 13,918 | ||
Total | ||||||
Components of accumulated other comprehensive income (loss), net of related tax benefit/expense | ||||||
Beginning balance | (38,507) | (41,054) | (61,110) | (25,498) | ||
Cumulative effect adjustment of change in accounting policy, net of tax impact | [1] | (341) | ||||
Beginning balance, adjusted | $ (25,839) | |||||
Ending balance | $ (30,401) | $ (47,351) | $ (30,401) | $ (47,351) | ||
[1] | Refer to Note 1 , Basis of Presentation and Significant Accounting Policies, Note 6 , Other Real Estate Owned and Repossessed Assets and Note 20 , Accumulated Other Comprehensive Loss for further details on the changes in accounting policy. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gain on sale of investment securities | $ 4,160 | $ 3 | $ 4,247 | $ 3 |
Income tax expense | (15,226) | (12,434) | (28,891) | (25,389) |
Net income | 69,594 | 68,988 | 132,536 | 140,584 |
Interest on short-term borrowings (interest expense) | 165,161 | 157,537 | 327,985 | 309,400 |
Gains and losses on investment securities carried at fair value | Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gain on sale of investment securities | 4,160 | 3 | 4,247 | 3 |
Income tax expense | (874) | (1) | (892) | (1) |
Net income | 3,286 | 2 | 3,355 | 2 |
Amortization of defined benefit pension plan items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries, wages and employee benefits (operating expenses) | 96 | 142 | 191 | 284 |
Income tax expense | (20) | (30) | (40) | (60) |
Net Loss | 76 | 112 | 151 | 224 |
Gains and losses on cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | 264 | 124 | 534 | 73 |
Gains and losses on cash flow hedges | Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | (992) | (465) | (2,010) | (274) |
Interest on short-term borrowings (interest expense) | $ (1,256) | $ (589) | $ (2,544) | $ (347) |