Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 04, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-09439 | |
Entity Registrant Name | INTERNATIONAL BANCSHARES CORPORATION | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 74-2157138 | |
Entity Address, Address Line One | 1200 San Bernardo Avenue | |
Entity Address, City or Town | Laredo | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78042-1359 | |
City Area Code | 956 | |
Local Phone Number | 722-7611 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | IBOC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,267,539 | |
Entity Central Index Key | 0000315709 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Cond
Consolidated Statements of Condition - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 1,198,206 | $ 256,820 |
Investment securities: | ||
Held to maturity debt securities (Market value of $3,400 on June 30, 2020 and 2,400 on December 31, 2019) | 3,400 | 2,400 |
Available for sale debt securities (Amortized cost of $3,045,135 on June 30, 2020 and $3,376,070 on December 31, 2019) | 3,097,734 | 3,378,923 |
Equity securities with readily determinable fair values | 6,194 | 6,095 |
Total investment securities | 3,107,328 | 3,387,418 |
Loans | 7,501,807 | 6,894,946 |
Less allowance for credit losses | (94,554) | (60,278) |
Net loans | 7,407,253 | 6,834,668 |
Bank premises and equipment, net | 491,998 | 506,595 |
Accrued interest receivable | 47,684 | 36,620 |
Other investments | 298,558 | 318,427 |
Cash surrender value of life insurance policies | 293,234 | 289,693 |
Goodwill | 282,532 | 282,532 |
Other assets | 197,729 | 200,121 |
Total assets | 13,324,522 | 12,112,894 |
Deposits: | ||
Demand-non-interest bearing | 4,416,744 | 3,545,905 |
Savings and interest bearing demand | 3,557,934 | 3,267,829 |
Time | 2,061,045 | 2,012,300 |
Total deposits | 10,035,723 | 8,826,034 |
Securities sold under repurchase agreements | 387,095 | 236,536 |
Other borrowed funds | 436,419 | 626,511 |
Junior subordinated deferrable interest debentures | 134,642 | 134,642 |
Other liabilities | 188,783 | 171,118 |
Total liabilities | 11,182,662 | 9,994,841 |
Shareholders' equity: | ||
Common shares of $1.00 par value. Authorized 275,000,000 shares; issued 96,228,578 shares on June 30, 2020 and 96,214,967 shares on December 31, 2019 | 96,229 | 96,215 |
Surplus | 148,744 | 148,075 |
Retained earnings | 2,233,455 | 2,200,568 |
Accumulated other comprehensive income | 41,319 | 2,345 |
Total shareholders' equity before treasury stock | 2,519,747 | 2,447,203 |
Less cost of shares in treasury, 32,956,273 shares on June 30, 2020 and 31,015,061 on December 31, 2019 | (377,887) | (329,150) |
Total shareholders' equity | 2,141,860 | 2,118,053 |
Total liabilities and shareholders' equity | $ 13,324,522 | $ 12,112,894 |
Consolidated Statements of Co_2
Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Consolidated Statements of Condition | ||
Held to maturity, Market value (in dollars) | $ 3,400 | $ 2,400 |
Available for sale, Amortized cost (in dollars) | $ 3,045,135 | $ 3,376,070 |
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, Authorized shares | 275,000,000 | 275,000,000 |
Common shares, issued shares | 96,228,578 | 96,214,967 |
Treasury, shares | 32,956,273 | 31,015,061 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest income: | ||||
Loans, including fees | $ 97,764 | $ 105,564 | $ 196,994 | $ 208,369 |
Investment securities: | ||||
Taxable | 15,092 | 19,602 | 31,580 | 38,902 |
Tax-exempt | 653 | 1,377 | 1,419 | 3,026 |
Other interest income | 141 | 317 | 269 | 626 |
Total interest income | 113,650 | 126,860 | 230,262 | 250,923 |
Interest expense: | ||||
Savings deposits | 1,161 | 4,249 | 4,396 | 8,492 |
Time deposits | 5,319 | 5,044 | 11,289 | 9,422 |
Securities sold under repurchase agreements | 148 | 591 | 613 | 1,180 |
Other borrowings | 2,088 | 3,513 | 4,914 | 7,007 |
Junior subordinated deferrable interest debentures | 1,080 | 1,681 | 2,353 | 3,631 |
Total interest expense | 9,796 | 15,078 | 23,565 | 29,732 |
Net interest income | 103,854 | 111,782 | 206,697 | 221,191 |
Provision for credit loss expenses | 10,989 | 2,665 | 27,825 | 10,085 |
Net interest income after provision for probable loan losses | 92,865 | 109,117 | 178,872 | 211,106 |
Non-interest income: | ||||
Investment securities transactions, net | (6) | (5) | (10) | |
Other investments, net | 617 | (1,703) | 386 | 2,245 |
Other income | 6,840 | 4,513 | 11,649 | 7,053 |
Total non-interest income | 33,596 | 34,416 | 68,726 | 70,545 |
Non-interest expense: | ||||
Employee compensation and benefits | 32,319 | 37,246 | 68,649 | 73,655 |
Occupancy | 5,770 | 6,580 | 12,669 | 12,957 |
Depreciation of bank premises and equipment | 7,190 | 7,032 | 14,299 | 14,013 |
Professional fees | 3,913 | 3,745 | 7,883 | 7,337 |
Deposit insurance assessments | 202 | 859 | 202 | 1,642 |
Net expense, other real estate owned | 2,835 | 1,203 | 5,837 | 2,198 |
Advertising | 1,892 | 2,081 | 3,876 | 4,163 |
Software and software maintenance | 5,257 | 5,003 | 9,748 | 9,500 |
Other | 14,530 | 15,864 | 27,726 | 27,099 |
Total non-interest expense | 73,908 | 79,613 | 150,889 | 152,564 |
Income before income taxes | 52,553 | 63,920 | 96,709 | 129,087 |
Provision for income taxes | 11,044 | 13,900 | 20,361 | 27,161 |
Net income | $ 41,509 | $ 50,020 | $ 76,348 | $ 101,926 |
Basic earnings per common share: | ||||
Weighted average number of shares outstanding (in shares) | 63,295,597 | 65,648,090 | 64,183,093 | 65,633,117 |
Net income (in dollars per share) | $ 0.66 | $ 0.76 | $ 1.19 | $ 1.55 |
Fully diluted earnings per common share: | ||||
Weighted average number of shares outstanding (in shares) | 63,397,199 | 65,867,234 | 64,313,011 | 65,849,281 |
Net income (in dollars per share) | $ 0.65 | $ 0.76 | $ 1.19 | $ 1.55 |
Services charges on deposit accounts | ||||
Non-interest income: | ||||
Service charges | $ 12,880 | $ 17,610 | $ 30,517 | $ 34,870 |
Other service charges, commissions and fees, Banking | ||||
Non-interest income: | ||||
Service charges | 11,229 | 11,764 | 22,395 | 22,640 |
Other service charges, commissions and fees, Non-banking | ||||
Non-interest income: | ||||
Service charges | $ 2,030 | $ 2,238 | $ 3,784 | $ 3,747 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Consolidated Statements of Comprehensive Income | ||||
Net income | $ 41,509 | $ 50,020 | $ 76,348 | $ 101,926 |
Other comprehensive income, net of tax: | ||||
Net unrealized holding (losses) gains on securities available for sale arising during period (net of tax effects of $(6,123), $6,685, $10,359 and $13,391) | (23,033) | 25,148 | 38,970 | 50,374 |
Reclassification adjustment for losses on securities available for sale included in net income (net of tax effects of $0, $1, $1 and $2) | 5 | 4 | 8 | |
Other comprehensive income, net of tax | (23,033) | 25,153 | 38,974 | 50,382 |
Comprehensive income | $ 18,476 | $ 75,173 | $ 115,322 | $ 152,308 |
Consolidated Statements of Co_3
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Consolidated Statements of Comprehensive Income | ||||
Net unrealized holding (losses) gains on securities available for sale arising during period, tax effects | $ (6,123) | $ 6,685 | $ 10,359 | $ 13,391 |
Reclassification adjustment for losses on securities available for sale included in net income, tax effects | $ 0 | $ 1 | $ 1 | $ 2 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Surplus | Retained Earnings | Other Comprehensive Income (Loss) | Treasury Stock | Total |
Balance at Dec. 31, 2018 | $ 96,104 | $ 145,283 | $ 2,064,134 | $ (54,634) | $ (311,305) | $ 1,939,582 |
Balance (in shares) at Dec. 31, 2018 | 96,104 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | 101,926 | 101,926 | ||||
Dividends: | ||||||
Cash | (32,821) | (32,821) | ||||
Purchase of treasury stock | (128) | (128) | ||||
Exercise of stock options | $ 47 | 827 | 874 | |||
Exercise of stock options (in shares) | 47 | |||||
Stock compensation expense recognized in earnings | 504 | 504 | ||||
Other comprehensive income, net of tax: | ||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | 50,382 | 50,382 | ||||
Balance at Jun. 30, 2019 | $ 96,151 | 146,614 | 2,133,239 | (4,252) | (311,433) | 2,060,319 |
Balance (in shares) at Jun. 30, 2019 | 96,151 | |||||
Balance at Mar. 31, 2019 | $ 96,137 | 146,113 | 2,083,219 | (29,405) | (311,359) | 1,984,705 |
Balance (in shares) at Mar. 31, 2019 | 96,137 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | 50,020 | 50,020 | ||||
Dividends: | ||||||
Purchase of treasury stock | (74) | (74) | ||||
Exercise of stock options | $ 14 | 262 | 276 | |||
Exercise of stock options (in shares) | 14 | |||||
Stock compensation expense recognized in earnings | 239 | 239 | ||||
Other comprehensive income, net of tax: | ||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | 25,153 | 25,153 | ||||
Balance at Jun. 30, 2019 | $ 96,151 | 146,614 | 2,133,239 | (4,252) | (311,433) | 2,060,319 |
Balance (in shares) at Jun. 30, 2019 | 96,151 | |||||
Balance at Dec. 31, 2019 | $ 96,215 | 148,075 | 2,200,568 | 2,345 | (329,150) | 2,118,053 |
Balance (in shares) at Dec. 31, 2019 | 96,215 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | 76,348 | 76,348 | ||||
Dividends: | ||||||
Cash | (35,128) | (35,128) | ||||
Purchase of treasury stock | (48,737) | (48,737) | ||||
Exercise of stock options | $ 14 | 274 | 288 | |||
Exercise of stock options (in shares) | 14 | |||||
Stock compensation expense recognized in earnings | 395 | 395 | ||||
Other comprehensive income, net of tax: | ||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | 38,974 | 38,974 | ||||
Balance at Jun. 30, 2020 | $ 96,229 | 148,744 | 2,233,455 | 41,319 | (377,887) | 2,141,860 |
Balance (in shares) at Jun. 30, 2020 | 96,229 | |||||
Balance at Mar. 31, 2020 | $ 96,226 | 148,508 | 2,191,946 | 64,352 | (358,521) | 2,142,511 |
Balance (in shares) at Mar. 31, 2020 | 96,226 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | 41,509 | 41,509 | ||||
Dividends: | ||||||
Purchase of treasury stock | (19,366) | (19,366) | ||||
Exercise of stock options | $ 3 | 59 | 62 | |||
Exercise of stock options (in shares) | 3 | |||||
Stock compensation expense recognized in earnings | 177 | 176 | ||||
Other comprehensive income, net of tax: | ||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | (23,033) | (23,033) | ||||
Balance at Jun. 30, 2020 | $ 96,229 | $ 148,744 | 2,233,455 | $ 41,319 | $ (377,887) | 2,141,860 |
Balance (in shares) at Jun. 30, 2020 | 96,229 | |||||
Dividends: | ||||||
Cumulative adjustment for adoption of new accounting standards, net of tax | $ (8,333) | $ (8,333) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Consolidated Statements of Shareholders' Equity | ||||
Cash Dividends (in dollars per share) | $ 0.55 | $ 0.50 | ||
Purchase of treasury stock (in shares) | 740,598 | 1,953 | 1,941,212 | 3,258 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities: | ||
Net income | $ 76,348 | $ 101,926 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit loss expenses | 27,825 | 10,085 |
Specific reserve, other real estate owned | 537 | 88 |
Depreciation of bank premises and equipment | 14,299 | 14,013 |
Gain on sale of bank premises and equipment | (155) | (194) |
Loss (gain) on sale of other real estate owned | 13 | (639) |
Accretion of investment securities discounts | (241) | (186) |
Amortization of investment securities premiums | 14,877 | 8,240 |
Investment securities transactions, net | 5 | 10 |
Unrealized gain on equity securities with readily determinable fair values | (99) | (190) |
Stock based compensation expense | 395 | 504 |
Losses (earnings) from affiliates and other investments | 203 | (290) |
Deferred income taxes | (14,861) | 764 |
Increase in accrued interest receivable | (11,064) | (1,153) |
(Decrease) increase in other assets | 244 | (25,589) |
Increase in other liabilities | 28,186 | 18,028 |
Net cash provided by operating activities | 136,512 | 125,417 |
Investing activities: | ||
Proceeds from maturities of securities | 1,075 | |
Proceeds from sales and calls of available for sale securities | 18,920 | 60,695 |
Purchases of available for sale securities | (458,184) | (380,095) |
Principal collected on mortgage backed securities | 753,483 | 317,822 |
Net increase in loans | (598,176) | (316,959) |
Purchases of other investments | (25,329) | (35,766) |
Distributions from other investments | 26,688 | 56,181 |
Purchases of bank premises and equipment | (4,593) | (14,409) |
Proceeds from sales of bank premises and equipment | 786 | 1,793 |
Proceeds from sales of other real estate owned | 3,625 | 1,470 |
Net cash used in investing activities | (281,705) | (309,268) |
Financing activities: | ||
Net increase in non-interest bearing demand deposits | 870,839 | 100,067 |
Net increase in savings and interest bearing demand deposits | 290,105 | 36,089 |
Net increase (decrease) in time deposits | 48,745 | (4,043) |
Net increase in securities sold under repurchase agreements | 150,559 | 11,199 |
Net decrease (increase) in other borrowed funds | (190,092) | 102,711 |
Redemption of long-term debt | (25,774) | |
Purchase of treasury stock | (48,737) | (128) |
Proceeds from stock transactions | 288 | 874 |
Payments of cash dividends - common | (35,128) | (32,822) |
Net cash provided by financing activities | 1,086,579 | 188,173 |
(Decrease) increase in cash and cash equivalents | 941,386 | 4,322 |
Cash and cash equivalents at beginning of period | 256,820 | 316,797 |
Cash and cash equivalents at end of period | 1,198,206 | 321,119 |
Supplemental cash flow information: | ||
Interest paid | 23,555 | 28,602 |
Income taxes paid | 370 | 27,864 |
Non-cash investing and financing activities: | ||
Net transfers from loans to other real estate owned | 2,234 | 22,281 |
Establishment of lease liability and right-of-use asset | $ 6,171 | |
Net transfers from bank premises and equipment to other assets | $ 4,260 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Basis of Presentation | |
Basis of Presentation | Note 1 — Basis of Presentation Our accounting and reporting policies conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. Our consolidated financial statements include the accounts of International Bancshares Corporation, and our wholly-owned bank subsidiaries, International Bank of Commerce, Laredo (“IBC”), Commerce Bank, International Bank of Commerce, Zapata, International Bank of Commerce, Brownsville, International Bank of Commerce, Oklahoma (the “Subsidiary Banks”) and our wholly-owned non-bank subsidiaries, IBC Trading Company, Premier Tierra Holdings, Inc., IBC Charitable and Community Development Corporation, and IBC Capital Corporation. Our consolidated financial statements are unaudited, but include all adjustments, which, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments were of a normal and recurring nature. These financial statements should be read in conjunction with the financial statements and the notes thereto in our latest Annual Report on Form 10-K. Our consolidated statement of condition at December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“US GAAP”) for complete financial statements. Certain reclassifications have been made to make prior periods comparable. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results for the year ending December 31, 2020 or any future period. We operate as one segment. The operating information used by our chief executive officer for purposes of assessing performance and making operating decisions is the consolidated statements presented in this report. We have five active operating subsidiaries, the Subsidiary Banks. We apply the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), FASB ASC 280, “Segment Reporting,” in determining our reportable segments and related disclosures. We have evaluated all events or transactions that occurred through the date we issued these financial statements. During this period, we did not have any material recognizable or non-recognizable subsequent events. On January 1, 2019, we adopted the provisions of ASU 2016-02, “Leases.” ASU 2016-02 amends existing standards for accounting for leases by lessees, with accounting for leases by lessors remaining mainly unchanged from current guidance. The update requires that lessees recognize a lease liability and a right of use asset for all leases (with the exception of short-term leases) at the commencement date of the lease and disclose key information about leasing arrangements. The update is to be applied on a modified retrospective basis for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. In January 2018, the FASB issued a proposal that provides an additional transition method that would allow entities to not apply the guidance in the update in the comparative periods presented in the consolidated financial statements, but instead recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As part of our business model, we primarily own all property we occupy, with the exception of certain branches operating in grocery stores or shopping centers and certain ATM locations that were classified as operating leases under previous guidance. The adoption of the standard did not have a significant impact on our consolidated financial statements. As of the date of adoption, we recorded a right of use asset and a lease liability million. The right of use asset and lease liability are included in other assets liabilities , respectively, on our consolidated statement of condition. Amortization of the right of use asset for the three and six months ended June 30, 2020 was respectively. Amortization of the right of use asset for the three and six months ended June 30, 2019 was approximately In June 2016, the FASB issued Accounting Standards Update No. 2016-13 to ASC 326, “Financial Instruments – Credit Losses.” The update amends existing standards for accounting for credit losses for financial assets. The update requires that the expected credit losses on the financial instruments held as of the end of the period being reported be measured based on historical experience, current conditions, and reasonable and supportable forecasts. The update also expands the required disclosures related to significant estimates and judgements used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s financial assets. The update also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The impact of the adoption of the standard is to be recorded as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The accounting standard was effective for us on January 1, 2020. The task force formed last year, which includes key members of the teams that work with the current calculation of the allowance for probable loan losses plus members representing the corporate accounting and risk management areas, has worked with the implementation of the update and validation to complete our model/tool. Based on the composition of the portfolio at December 31, 2019 and after finalizing the methodology, the adoption of the update increased our allowance for probable loan losses (referred to as the allowance for credit losses under ASU 2016-13), by approximately 17.2%, resulting in a cumulative-effect adjustment to retained earnings of approximately $8.3 million, net of tax. Please refer to Note 4 – Allowance for Credit Losses and the Critical Accounting Policies discussion in Management’s Discussion and Analysis. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | Note 2 — Fair Value Measurements ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”), defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 applies to all financial instruments that are being measured and reported on a fair value basis. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; it also establishes a fair value hierarchy that prioritizes the inputs used in valuation methodologies into the following three levels: ● Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities. ● Level 2 Inputs - Observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 Inputs - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or other valuation techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of June 30, 2020 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs June 30, 2020 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale debt securities Residential mortgage-backed securities $ 3,023,413 $ — $ 3,023,413 $ — States and political subdivisions 74,321 — 74,321 — Equity Securities 6,194 6,194 — — $ 3,103,928 $ 6,194 $ 3,097,734 $ — The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of December 31, 2019 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs December 31, 2019 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale securities Residential mortgage - backed securities $ 3,285,548 $ — $ 3,285,548 $ — States and political subdivisions 93,375 — 93,375 — Equity Securities 6,095 6,095 — — $ 3,385,018 $ 6,095 $ 3,378,923 $ — Available-for-sale debt securities are classified within Level 2 of the valuation hierarchy. Equity securities with readily determinable fair values are classified within Level 1. For debt investments classified as Level 2 in the fair value hierarchy, we obtain fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis. The instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended June 30, 2020 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets for Other Significant Net Provision Period ended Identical Observable Unobservable (Credit) June 30, Assets Inputs Inputs During 2020 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Watch-List doubtful loans $ 300 $ — $ — $ 300 $ 163 Other real estate owned 2,581 — — 2,581 537 The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended December 31, 2019 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets Other Significant Net (Credit) Year ended for Identical Observable Unobservable Provision December 31, Assets Inputs Inputs During 2019 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Impaired loans $ 826 $ — $ — $ 826 $ 43 Other real estate owned 21,614 — — 21,614 322 Equity investment without a readily determinable fair value 28,166 — — 28,166 4,775 Our assets measured at fair value on a non-recurring basis at June 30, 2020 are limited to loans classified as Watch List – Doubtful and other real estate owned. At December 31, 2019, asset measured at fair value on a non-recurring basis also included an equity investment without a readily determinable fair value. The fair value of Watch-List Doubtful loans is derived in accordance with FASB ASC 310, “Receivables”. They are primarily comprised of collateral-dependent commercial loans. As the primary sources of loan repayments decline, the secondary repayment source, the collateral, takes on greater significance. Correctly evaluating the fair value becomes even more important. Re-measurement of the loan to fair value is done through a specific valuation allowance included in the allowance for credit losses. The fair value of the loan is based on the fair value of the collateral, as determined through either an appraisal or evaluation process. The basis for our appraisal and appraisal review process is based on regulatory guidelines and strives to comply with all regulatory appraisal laws, regulations, and the Uniform Standards of Professional Appraisal Practice. All appraisals and evaluations are “as is” (the property’s highest and best use) valuations based on the current conditions of the property/project at that point in time. The determination of the fair value of the collateral is based on the net realizable value, which is the appraised value less any closing costs, when applicable. As of June 30, 2020, we had $1,896,000 of doubtful commercial collateral dependent loans, of which $0 had an appraisal performed within the immediately preceding twelve months, and of which $1,354,000 had an evaluation performed within the immediately preceding twelve months. As of December 31, 2019, we had approximately $2,955,000 of doubtful commercial collateral dependent loans, of which $1,426,000 had an appraisal performed within the immediately preceding twelve months and of which $847,000 had an evaluation performed within the immediately preceding twelve months. Our determination to either seek an appraisal or to perform an evaluation begins in weekly credit quality meetings, where the committee analyzes the existing collateral values of the doubtful loans and where obsolete appraisals are identified. In order to determine whether we would obtain a new appraisal or perform an internal evaluation to determine the fair value of the collateral, the credit committee reviews the existing appraisal to determine if the collateral value is reasonable in view of the current use of the collateral and the economic environment related to the collateral. If the analysis of the existing appraisal does not find that the collateral value is reasonable under the current circumstances, we would obtain a new appraisal on the collateral or perform an internal evaluation of the collateral. The ultimate decision to get a new appraisal rests with the independent credit administration group. A new appraisal is not required if an internal evaluation, as performed by in-house experts, is able to appropriately update the original appraisal assumptions to reflect current market conditions and provide an estimate of the collateral’s market value for analysis of the doubtful loan. The internal evaluations must be in writing and contain sufficient information detailing the analysis, assumptions and conclusions, and they must support performing an evaluation in lieu of ordering a new appraisal. Other real estate owned is comprised of real estate acquired by foreclosure and deeds in lieu of foreclosure. Other real estate owned is carried at the lower of the recorded investment in the property or its fair value less estimated costs to sell such property (as determined by independent appraisal) within Level 3 of the fair value hierarchy. Prior to foreclosure, the value of the underlying loan is written down to the fair value of the real estate to be acquired by a charge to the allowance for credit losses, if necessary. The fair value is reviewed periodically and subsequent write-downs are made, accordingly, through a charge to operations. Other real estate owned is included in other assets on the consolidated financial statements. For the three and six months ended June 30, 2020 and the twelve months ended December 31, 2019, we recorded $18,000, $22,000 n charges to the allowance for credit losses in connection with loans transferred to other real estate owned. For the three and six months ended June 30, 2020 and the twelve months ended December 31, 2019, we recorded $0, $537,000 and $322,000, respectively, in adjustments to fair value in connection with other real estate owned. The fair value estimates, methods, and assumptions for our financial instruments at June 30, 2020 and December 31, 2019 are outlined below. Cash and Cash Equivalents For these short-term instruments, the carrying amount is a reasonable estimate of fair value. Time Deposits with Banks The carrying amounts of time deposits with banks approximate fair value. Investment Securities Held-to-Maturity The carrying amounts of investments held-to-maturity approximate fair value. Investment Securities For investment securities, which include U.S. Treasury securities, obligations of other U.S. government agencies, obligations of states and political subdivisions and mortgage pass-through and related securities, fair values are from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. See disclosures of fair value of investment securities in Note 6. Loans Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type, such as commercial, real estate and consumer loans, as outlined by regulatory reporting guidelines. Each category is segmented into fixed and variable interest rate terms and by performing and non-performing categories. For variable rate performing loans, the carrying amount approximates the fair value. For fixed-rate performing loans, except residential mortgage loans, the fair value is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan. For performing residential mortgage loans, fair value is estimated by discounting contractual cash flows adjusted for prepayment estimates using discount rates based on secondary market sources or the primary origination market. Fixed-rate performing loans are within Level 3 of the fair value hierarchy. At June 30, 2020 and December 31, 2019, the carrying amount of fixed rate performing loans was $1,937,171,000 and $1,503,811,000, respectively, and the estimated fair value was $1,859,534,000 and $1,481,239,000, respectively. Accrued Interest The carrying amounts of accrued interest approximate fair value. Deposits The fair value of deposits with no stated maturity, such as non-interest bearing demand deposit accounts, savings accounts and interest bearing demand deposit accounts, was equal to the amount payable on demand as of June 30, 2020 and December 31, 2019. The fair value of time deposits is based on the discounted value of contractual cashflows. The discount rate is based on currently offered rates. Time deposits are within Level 3 of the fair value hierarchy. At June 30, 2020 and December 31, 2019, the carrying amount of time deposits was $2,061,045,000 and $2,012,300,000, respectively, and the estimated fair value was $2,055,954,000 and $2,011,950,000, respectively. Securities Sold Under Repurchase Agreements Securities sold under repurchase agreements are short-term maturities. Due to the contractual terms of the instruments, the carrying amounts approximated fair value at June 30, 2020 and December 31, 2019. Junior Subordinated Deferrable Interest Debentures We currently have floating-rate junior subordinated deferrable interest debentures outstanding. Due to the contractual terms of the floating-rate junior subordinated deferrable interest debentures, the carrying amounts approximated fair value at June 30, 2020 and December 31, 2019. Other Borrowed Funds We currently have long-term borrowings issued from the Federal Home Loan Bank (“FHLB”). The long-term borrowings outstanding at June 30, 2020 and December 31, 2019 are fixed-rate borrowings and the fair value is based on established market spreads for similar types of borrowings. The fixed rate long-term borrowings are included in Level 2 of the fair value hierarchy. At June 30, 2020 and December 31, 2019, the carrying amount of the fixed rate long-term FHLB borrowings was $436,404,000 and $436,511,000, respectively, and the estimated fair value was $500,000,000 and $465,017,000 , respectively. Commitments to Extend Credit and Letters of Credit Commitments to extend credit and fund letters of credit are principally at current interest rates, and, therefore, the carrying amount approximates fair value. Limitations Fair value estimates are made at a point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-statement of condition financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets or liabilities include the bank premises and equipment and core deposit value. In addition, the tax ramifications related to the effect of fair value estimates have not been considered in the above estimates. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2020 | |
Loans | |
Loans | Note 3 — Loans A summary of loans, by loan type at June 30, 2020 and December 31, 2019 is as follows: June 30, December 31, 2020 2019 (Dollars in Thousands) Commercial, financial and agricultural $ 3,967,980 $ 3,379,837 Real estate - mortgage 1,081,380 1,140,377 Real estate - construction 2,277,991 2,185,883 Consumer 42,401 47,800 Foreign 132,055 141,049 Total loans $ 7,501,807 $ 6,894,946 |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2020 | |
Allowance for Credit Losses | |
Allowance for Credit Losses | Note 4 — Allowance for Credit Losses We adopted the provisions of ASU 2016-13 on January 1, 2020 on a modified retrospective basis. Results and information regarding our allowance for credit losses (“ACL”) included in this Note are calculated and presented in accordance with that accounting standards update. Results and information prior to January 1, 2020 are calculated and presented in accordance with previously applicable U.S. GAAP. ASU 2016-13 replaces the long-standing incurred loss model with an expected credit loss model that recognizes credit losses over the life of a financial asset. Expected credit losses capture historical information, current conditions, and reasonable and supportable forecasts of future conditions. The ACL is deducted from the amortized cost of an instrument to present the net amount expected to be collected on the financial asset. Our ACL primarily consists of the aggregate ACL estimates of our Subsidiary Banks. The estimates are established through charges to operations in the form of charges to provisions for credit loss expense. Loan losses or recoveries are charged or credited directly to the ACL. The ACL of each Subsidiary Bank is maintained at a level considered appropriate by management, based on estimated current expected credit losses in the current loan portfolio, including information about past events, current conditions and reasonable and supportable forecasts. The estimation of the ACL is based on a loss-rate methodology that measures lifetime losses on loan pools that have similar risk characteristics. Loans that do not have similar risk characteristics are evaluated on an individual basis. The segmentation of the loan portfolio into pools requires a balancing process between capturing similar risk characteristics and containing sufficient loss history to provide meaningful results. Our segmentation starts at the general loan category with further sub-segmentation based on collateral types that may be of meaningful size and/or may contain sufficient differences in risk characteristics based on management’s judgement that would warrant further segmentation. The general loan categories along with primary risk characteristics used in our calculation are as follows: Commercial and industrial loans. into sales are risk factors in the repayment of the loan. A small portion of this loan category is related to loans secured by oil & gas production and loans secured by aircraft. Construction and land development loans. Commercial real estate loans. 1-4 family mortgages. Consumer loans. The loan pools are further broken down using a risk-based segmentation based on internal classifications for commercial loans and past due status for consumer mortgage loans. Non-mortgage consumer loans are evaluated as one segment. On a weekly basis, commercial loan past due reports are reviewed by the credit quality committee to determine if a loan has any potential problems and if a loan should be placed on our internal Watch List report. Additionally, our credit department reviews the majority of our loans for proper internal classification purposes regardless of whether they are past due and segregates any loans with potential problems for further review. The credit department will discuss the potential problem loans with the servicing loan officers to determine any relevant issues that were not discovered in the evaluation. Also, an analysis of loans that is provided through examinations by regulatory authorities is considered in the review process. After the above analysis is completed, we will determine if a loan should be placed on an internal Watch List report because of issues related to the analysis of the credit, credit documents, collateral and/or payment history. Our internal Watch List report is segregated into the following categories: (i) Pass, (ii) Economic Monitoring, (iii) Special Review, (iv) Watch List—Pass, or (v) Watch List—Substandard, and (vi) Watch List—Doubtful. The loans placed in the Special Review category and lower rated credits reflect our opinion that the loans reflect potential weakness which require monitoring on a more frequent basis. Credits in those categories are reviewed and discussed on a regular basis, no less frequently than quarterly, with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the Watch List—Pass category and lower rated credits reflect our opinion that the credit contains weaknesses which represent a greater degree of risk, which warrant “extra attention.” Credits in this category are reviewed and discussed on a regular basis with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the Watch List—Substandard category are considered to be potentially inadequately protected by the current sound worth and debt service capacity of the borrower or of any pledged collateral. These credit obligations, even if apparently protected by collateral value, have shown defined weaknesses related to adverse financial, managerial, economic, market or political conditions which may jeopardize repayment of principal and interest. Furthermore, there is the possibility that we may sustain some future loss if such weaknesses are not corrected. The loans placed in the Watch List—Doubtful category have shown defined weaknesses and it is likely, based on current information and events, that we will be unable to collect all principal and/or interest amounts contractually due. Watch List—Doubtful loans are placed on non-accrual when they are moved to that category. For the purposes of the ACL, in order to maintain segments with sufficient history for meaningful results, the credits in the Pass and Economic Monitoring categories are aggregated, the credits in the Special Review and Watch List—Pass credits are aggregated, and the credits in the Watch List—Substandard category remain in their own segment. For loans that are classified as Watch List—Doubtful, management evaluates these credits in accordance with ASC 310-10, “Receivables,” and, if deemed necessary, a specific reserve is allocated to the loan. The specific reserve allocated under ASC 310-10, is based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) net realizable value of the fair value of the collateral if the loan is collateral dependent. Substantially all of our loans evaluated as Watch List—Doubtful under ASC 310-10 are measured using the fair value of collateral method. In rare cases, we may use other methods to determine the specific reserve of a loan under ASC 310-10 if such loan is not collateral dependent. Within each collectively evaluated pool, the robustness of the lifetime historical loss-rate is evaluated and, if needed, is supplemented with peer loss rates through a model risk adjustment. Certain qualitative loss factors are then evaluated to incorporate management’s two-year reasonable and supportable forecast period followed by a reversion to the pool’s average lifetime loss-rate. Those qualitative loss factors are: (i) trends in portfolio volume and composition, (ii) volume and trends in classified loans, delinquencies, non-accruals and TDR’s, (iii) concentration risk, (iv) trends in underlying collateral value, (v) changes in policies, procedures, and strategies, and (vi) economic conditions. Qualitative factors also include potential losses stemming from operational risk factors arising from fraud, natural disasters, pandemics and geopolitical events. Should any of the factors considered by management in evaluating the adequacy of the ACL change, our estimate could also change, which could affect the level of future credit loss expense. We have elected to not measure an ACL for accrued interest receivable given our timely approach in identifying and writing off uncollectible accrued interest. An ACL for off-balance sheet exposure is derived from a projected usage rate of any unfunded commitment multiplied by the historical loss rate, plus model risk adjustment, if any, of the on-balance sheet loan pools. Our management continually reviews the ACL of the Subsidiary Banks using the amounts determined from the estimates established on specific doubtful loans, the estimate established on quantitative historical loss percentages, and the estimate based on qualitative current conditions and reasonable and supportable two-year forecasted data. Our methodology reverts to the average lifetime loss-rate beyond the forecast period when we can no longer develop reasonable and supportable forecasts. Should any of the factors considered by management in evaluating the adequacy of the estimate for current expected credit losses change, our estimate of current expected credit losses could also change, which could affect the level of future credit loss expense. While the calculation of our ACL utilizes management’s best judgment and all information reasonably available, the adequacy of the ACL is dependent on a variety of factors beyond our control, including, among other things, the performance of the entire loan portfolio, the economy, government actions, changes in interest rates and the view of regulatory authorities towards loan classifications. A summary of the transactions in the allowance for credit loan losses by loan class is as follows: Three Months Ended June 30, 2020 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, 2020 $ 19,067 $ 37,421 $ 15,004 $ 1,758 $ 2,782 $ 8,452 $ 323 $ 466 $ 85,273 Losses charged to allowance (2,142) (19) — — — (121) (60) — (2,342) Recoveries credited to allowance 599 1 12 — 1 17 4 — 634 Net (losses) recoveries charged to allowance (1,543) (18) 12 — 1 (104) (56) — (1,708) Provision charged to operations 2,555 3,521 3,695 106 425 616 21 50 10,989 Balance at June 30, 2020 $ 20,079 $ 40,924 $ 18,711 $ 1,864 $ 3,208 $ 8,964 $ 288 $ 516 $ 94,554 Three Months Ended June 30, 2019 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, 2019 $ 11,412 $ 14,789 $ 25,880 $ 2,345 $ 3,546 $ 7,745 $ 462 $ 851 $ 67,030 Losses charged to allowance (5,016) — (6,878) — (1) (94) (55) — (12,044) Recoveries credited to allowance 408 56 15 — 10 55 8 — 552 Net (losses) recoveries charged to allowance (4,608) 56 (6,863) — 9 (39) (47) — (11,492) Provision charged to operations 4,976 428 (1,988) (496) 72 (394) 73 (6) 2,665 Balance at June 30, 2019 $ 11,780 $ 15,273 $ 17,029 $ 1,849 $ 3,627 $ 7,312 $ 488 $ 845 $ 58,203 Six Months Ended June 30, 2020 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, 2019 $ 11,145 $ 18,152 $ 16,533 $ 1,786 $ 3,762 $ 7,535 $ 542 $ 823 $ 60,278 Adoption of ASU 2016-13 4,247 13,391 (4,292) (355) (1,580) (429) (225) (410) 10,347 Losses charged to allowance (4,961) (19) (55) — (36) (121) (130) — (5,322) Recoveries credited to allowance 1,270 1 21 — 2 120 12 — 1,426 Net (losses) recoveries charged to allowance (3,691) (18) (34) — (34) (1) (118) — (3,896) Provision charged to operations 8,378 9,399 6,504 433 1,060 1,859 89 103 27,825 Balance at June 30, 2020 $ 20,079 $ 40,924 $ 18,711 $ 1,864 $ 3,208 $ 8,964 $ 288 $ 516 $ 94,554 Six Months Ended June 30, 2019 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, 2018 $ 12,596 $ 15,123 $ 19,353 $ 1,808 $ 3,467 $ 7,719 $ 447 $ 871 $ 61,384 Losses charged to allowance (7,780) — (6,879) — (2) (100) (118) — (14,879) Recoveries credited to allowance 1,046 76 298 — 11 157 25 — 1,613 Net (losses) recoveries charged to allowance (6,734) 76 (6,581) — 9 57 (93) — (13,266) Provision charged to operations 5,918 74 4,257 41 151 (464) 134 (26) 10,085 Balance at June 30, 2019 $ 11,780 $ 15,273 $ 17,029 $ 1,849 $ 3,627 $ 7,312 $ 488 $ 845 $ 58,203 The increase in credit loss expense for the three and six months ended June 30, 2020 can be primarily attributed to the deteriorating economic conditions occurring in those periods as a result of COVID-19 and the impact of those changes on our ACL calculation for those periods. We adopted the provisions of ASU 2016-13 on January 1, 2020, resulting in a transition from the long-standing incurred loss model to an expected credit loss model. Impacting the provision for loan loss for the six months ended June 30, 2019 is a relationship that is secured by multiple pieces of real property on which car dealerships are operated. The relationship began deteriorating in the fourth quarter of 2018, triggered by significant fraud by a high level insider of the car dealership resulting in the dealerships unexpectedly filing for bankruptcy and creating an exposure for potential loss since the operations of the dealerships were the source of repayment from the borrower. The relationship further deteriorated in the first quarter of 2019 after the court approved debtor in possession plan sponsor discontinued its role in the process and thus did not fulfill its obligation to assume full responsibility of the accrued and unpaid interest. Although the relationship is secured by real property (the dealerships’ real estate), the real property has specialized use, contributing to the potential exposure for probable loss. During the first quarter of 2019, in light of the circumstances and management’s evaluation of the relationship, the decision was made to classify the relationship as doubtful (previously referred to as impaired prior to the adoption of ASU 2016-13), non-accrual status and place a specific reserve on the relationship in the amount of $9.5 million. During the second quarter of 2019, management continued to evaluate the relationship and decided to foreclose on the underlying real estate collateral, resulting in a charge-off of approximately $9,500,000 , reflected in the tables above as part of the Commercial and Commercial Real Estate: Farmland and Commercial categories. The table below provides additional information on the balance of loans individually or collectively evaluated for impairment and their related allowance, by loan class as of June 30, 2020 and December 31, 2019: June 30, 2020 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 1,595 $ 412 $ 1,805,896 $ 19,667 Commercial real estate: other construction & land development 914 116 2,277,077 40,808 Commercial real estate: farmland & commercial 536 — 1,971,098 18,711 Commercial real estate: multifamily 137 — 188,718 1,864 Residential: first lien 252 — 421,286 3,208 Residential: junior lien 41 — 659,801 8,964 Consumer 3 — 42,398 288 Foreign — — 132,055 516 Total $ 3,478 $ 528 $ 7,498,329 $ 94,026 December 31, 2019 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 1,935 $ 249 $ 1,290,725 $ 10,895 Commercial real estate: other construction & land development 938 116 2,184,945 18,037 Commercial real estate: farmland & commercial 1,208 — 1,895,539 16,533 Commercial real estate: multifamily 165 — 190,265 1,786 Residential: first lien 6,278 — 427,623 3,762 Residential: junior lien 692 — 705,784 7,535 Consumer 1,195 — 46,605 542 Foreign 264 — 140,785 823 Total $ 12,675 $ 365 $ 6,882,271 $ 59,913 The table below provides additional information on loans accounted for on a non-accrual basis by loan class at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 (Dollars in Thousands) Domestic Commercial $ 1,595 $ 1,901 Commercial real estate: other construction & land development 914 938 Commercial real estate: farmland & commercial 536 1,208 Commercial real estate: multifamily 137 165 Residential: first lien 876 670 Residential: junior lien 41 — Consumer 3 4 Total non-accrual loans $ 4,102 $ 4,886 Watch—List Doubtful loans are those loans where it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. We have identified these loans through our normal loan review procedures. Watch—List Doubtful loans are measured based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) the fair value of the collateral, if the loan is collateral dependent. Substantially all of our doubtful loans are measured at the fair value of the collateral. In limited cases, we may use other methods to determine the level of impairment of a loan if such loan is not collateral dependent. The following tables detail key information regarding our doubtful (previously referred to as impaired prior to the adoption of ASU 2016-13) loans by loan class at December 31, 2019, in accordance with ASC 310 prior to the adoption of ASU 2016-13: December 31, 2019 Unpaid Average Recorded Principal Related Recorded Interest Investment Balance Allowance Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ 510 $ 516 $ 249 $ 514 $ — Commercial real estate: other construction & land development 126 169 116 131 — Total impaired loans with related allowance $ 636 $ 685 $ 365 $ 645 $ — December 31, 2019 Unpaid Average Recorded Principal Recorded Interest Investment Balance Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 1,425 $ 1,516 $ 16,194 $ 3 Commercial real estate: other construction & land development 812 1,133 2,151 — Commercial real estate: farmland & commercial 1,208 1,841 36,632 — Commercial real estate: multifamily 165 168 565 — Residential: first lien 6,278 6,445 7,136 305 Residential: junior lien 692 692 976 44 Consumer 1,195 1,196 1,211 2 Foreign 264 264 327 14 Total impaired loans with no related allowance $ 12,039 $ 13,255 $ 65,192 $ 368 The following table details key information regarding our doubtful (previously referred to as impaired prior to the adoption of ASU 2016-13) loans by loan class at June 30, 2019, in accordance with ASC 310 prior to the adoption of ASU 2016-13: June 30, 2019 Quarter to Date Year to Date Average Average Recorded Interest Recorded Interest Investment Recognized Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ 1,316 $ — $ 1,322 $ — Commercial real estate: other construction & land development 132 — 133 — Commercial real estate: farmland & commercial 2,369 — 2,369 — Total impaired loans with related allowance $ 3,817 $ — $ 3,824 $ — June 30, 2019 Quarter to Date Year to Date Average Average Recorded Interest Recorded Interest Investment Recognized Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 16,788 $ 1 $ 17,078 $ 1 Commercial real estate: other construction & land development 1,792 — 1,813 — Commercial real estate: farmland & commercial 14,203 — 20,551 — Commercial real estate: multifamily 507 — 507 — Residential: first lien 6,480 78 6,579 153 Residential: junior lien 1,028 11 1,033 22 Consumer 1,046 — 1,063 — Foreign 281 3 285 6 Total impaired loans with no related allowance $ 42,125 $ 93 $ 48,909 $ 182 The following table details loans accounted for as “troubled debt restructuring,” segregated by loan class. Loans accounted for as troubled debt restructuring are included in Watch List—Doubtful loans. June 30, 2020 December 31, 2019 (Dollars in Thousands) Domestic Commercial $ — $ 32 Residential: first lien 3,834 5,608 Residential: junior lien 670 692 Consumer 1,007 1,192 Foreign 249 264 Total troubled debt restructuring $ 5,760 $ 7,788 We are actively working with our customers affected by the current economic crisis arising from COVID-19. We have been offering and are prepared to continue to offer assistance in accordance with current regulatory guidance. That includes continuously reaching out to our customers and, in some cases, offering short-term payment deferral plans. To date, we have approximately $1,853,640,000 in loans with some degree of payment deferrals in our system. In accordance with interagency guidance issued in March 2020, these short-term deferrals are not considered troubled debt restructurings. With the passage of the Paycheck Protection Program (“PPP”), administered by the Small Business Association (“SBA”), we are actively assisting our customers with applications for loans through the PPP. PPP loans earn interest at 1% and PPP loans made prior to June 5, 2020 have a two-year term, while those made after June 5, 2020 have a five-year term; however, PPP loans also include forgiveness provisions that we expect most customers will utilize. PPP loans are intended to support up to weeks of payroll and certain other costs to help those businesses remain viable and allow their employees to pay their bills. As of August 5, 2020, we had approved and closed with the SBA 4,914 PPP loans totaling approximately $454,259,000 . The PPP loans are fully guaranteed by the U.S. government through the SBA. The Subsidiary Banks charge-off that portion of any loan which management considers to represent a loss as well as that portion of any other loan which is classified as a “loss” by bank examiners. Commercial and industrial or real estate loans are generally considered by management to represent a loss, in whole or part, when an exposure beyond any collateral coverage is apparent and when no further collection of the loss portion is anticipated based on the borrower’s financial condition and general economic conditions in the borrower’s industry. Generally, unsecured consumer loans are charged-off when 90 days past due. While our management believes that it is generally able to identify borrowers with financial problems reasonably early and to monitor credit extended to such borrowers carefully, there is no precise method of predicting loan losses. The determination that a loan is likely to be uncollectible and that it should be wholly or partially charged-off as a loss is an exercise of judgment. Similarly, the determination of the adequacy of the ACL can be made only on a subjective basis. It is the judgment of our management that the ACL at June 30, 2020 was adequate to absorb probable losses from loans in the portfolio at that date. The following tables present information regarding the aging of past due loans by loan class at June 30, 2020 and December 31, 2019: June 30, 2020 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 1,910 $ 7,610 $ 2,057 $ 1,339 $ 11,577 $ 1,795,914 $ 1,807,491 Commercial real estate: other construction & land development 2,821 653 118 118 3,592 2,274,399 2,277,991 Commercial real estate: farmland & commercial 24,359 1,036 49,827 49,584 75,222 1,896,412 1,971,634 Commercial real estate: multifamily 124 — — — 124 188,731 188,855 Residential: first lien 5,157 1,944 4,013 3,434 11,114 410,424 421,538 Residential: junior lien 739 1,784 1,418 1,377 3,941 655,901 659,842 Consumer 488 40 119 116 647 41,754 42,401 Foreign 2,699 174 277 277 3,150 128,905 132,055 Total past due loans $ 38,297 $ 13,241 $ 57,829 $ 56,245 $ 109,367 $ 7,392,440 $ 7,501,807 December 31, 2019 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 3,134 $ 626 $ 1,292 $ 421 $ 5,052 $ 1,287,608 $ 1,292,660 Commercial real estate: other construction & land development 509 55 — — 564 2,185,319 2,185,883 Commercial real estate: farmland & commercial 8,058 2,031 54,928 54,878 65,017 1,831,730 1,896,747 Commercial real estate: multifamily 313 — 165 — 478 189,952 190,430 Residential: first lien 3,229 1,670 3,660 3,107 8,559 425,342 433,901 Residential: junior lien 1,112 477 1,200 1,200 2,789 703,687 706,476 Consumer 467 75 88 88 630 47,170 47,800 Foreign 1,347 3 11 11 1,361 139,688 141,049 Total past due loans $ 18,169 $ 4,937 $ 61,344 $ 59,705 $ 84,450 $ 6,810,496 $ 6,894,946 A summary of the loan portfolio by credit quality indicator by loan class and by year of origination at June 30, 2020 is presented below. A summary of the loan portfolio by credit quality indicator presented at December 31, 2019, based on guidance prior to the adoption of ASU 2016-13, is also presented below: 2020 2019 2018 2017 2016 Prior Total (Dollars in Thousands) Balance at June 30, 2020 Domestic Commercial Pass $ 909,494 $ 373,023 $ 212,414 $ 140,118 $ 20,898 $ 12,645 $ 1,668,592 Special Review 71,497 569 — — — — 72,066 Watch List - Pass 530 33,949 29,644 — — 25 64,148 Watch List - Substandard — 3 708 — 378 — 1,089 Watch List - Doubtful 813 330 214 221 18 — 1,596 Total Commercial $ 982,334 $ 407,874 $ 242,980 $ 140,339 $ 21,294 $ 12,670 $ 1,807,491 Commercial real estate: other construction & land development Pass $ 426,830 $ 951,765 $ 622,403 $ 186,950 $ 14,952 $ 13,165 $ 2,216,065 Special Review 16,106 — — — — — 16,106 Watch List - Pass 16,587 27,782 160 — — 1 44,530 Watch List - Substandard 376 — — — — — 376 Watch List - Doubtful 120 793 — — — 1 914 Total Commercial real estate: other construction & land development $ 460,019 $ 980,340 $ 622,563 $ 186,950 $ 14,952 $ 13,167 $ 2,277,991 Commercial real estate: farmland & commercial Pass $ 373,126 $ 558,263 $ 339,142 $ 184,595 $ 201,642 $ 169,981 $ 1,826,749 Special Review 938 — 4,702 175 3,207 420 9,442 Watch List - Pass 22,701 7,933 22,300 8,878 7,448 — 69,260 Watch List - Substandard 3,371 55,639 192 2,312 637 3,496 65,647 Watch List - Doubtful — 243 — 39 — 254 536 Total Commercial real estate: farmland & commercial $ 400,136 $ 622,078 $ 366,336 $ 195,999 $ 212,934 $ 174,151 $ 1,971,634 Commercial real estate: multifamily Pass $ 24,964 $ 59,134 $ 17,867 $ 64,576 $ 9,704 $ 12,473 $ 188,718 Watch List - Doubtful 137 — — — — — 137 Total Commercial real estate: multifamily $ 25,101 $ 59,134 $ 17,867 $ 64,576 $ 9,704 $ 12,473 $ 188,855 Residential: first lien |
Stock Options
Stock Options | 6 Months Ended |
Jun. 30, 2020 | |
Stock Options | |
Stock Options | Note 5 — Stock Options On April 5, 2012, the Board of Directors adopted the 2012 International Bancshares Corporation Stock Option Plan (the “2012 Plan”). There are 800,000 shares of common stock available for stock option grants under the 2012 Plan, which may be qualified incentive stock options (“ISOs”) or non-qualified stock options. Options granted may be exercisable for a period of up to 10 years from the date of grant, excluding ISOs granted to 10% shareholders, which may be exercisable for a period of up to only five years . As of June 30, 2020, 8,602 shares were available for future grants under the 2012 Plan. A summary of option activity under the stock option plan for the six months ended June 30, 2020 is as follows: Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price term (years) value ($) (in Thousands) Options outstanding at December 31, 2019 658,588 $ 27.55 Plus: Options granted 29,500 17.57 Less: Options exercised 13,611 21.15 Options expired — — Options forfeited 9,451 30.35 Options outstanding at June 30, 2020 665,026 27.20 5.49 $ 4,591 Options fully vested and exercisable at June 30, 2020 411,269 $ 22.86 4.06 $ 3,968 Stock-based compensation expense included in the consolidated statements of income for the three and six months ended June 30, 2020 was $176,000 and $395,000 , respectively. Stock-based compensation expense included in the consolidated statements of income for the three and six months ended June 30, 2019 was $239,000 and $504,000 , respectively. As of June 30, 2020, there was approximately $1,576,000 of total unrecognized stock-based compensation cost related to non-vested options granted under our plans that will be recognized over a weighted average period of 1.8 years. |
Investment Securities and Equit
Investment Securities and Equity Securities with Readily Determinable Fair Values | 6 Months Ended |
Jun. 30, 2020 | |
Investment Securities and Equity Securities with Readily Determinable Fair Values | |
Investment Securities and Equity Securities with Readily Determinable Fair Values | Note 6 — Investment Securities and Equity Securities with Readily Determinable Fair Values We classify debt securities into one of three categories: held-to maturity, available-for-sale, or trading. Such debt securities are reassessed for appropriate classification at each reporting date. Securities classified as “held-to-maturity” are carried at amortized cost for financial statement reporting, while securities classified as “available-for-sale” and “trading” are carried at their fair value. Unrealized holding gains and losses are included in net income for those securities classified as “trading,” while unrealized holding gains and losses related to those securities classified as “available-for-sale” are excluded from net income and reported net of tax as other comprehensive income (loss) and accumulated other comprehensive income (loss) until realized, or in the case of losses, when deemed other than temporary. In accordance with ASU 2016-13, which we adopted on January 1, 2020, available-for-sale and held-to-maturity debt securities in an unrealized loss position must be evaluated for the underlying cause of the loss. In the event that the deterioration in value is attributable to credit related reasons, then the amount of credit-related impairment would be recorded as a charge to our ACL with subsequent changes in the amount of impairment, up or down, also recorded through our ACL. The exception to this process will occur if we intend to sell an impaired available-for-sale debt security or if we will more likely than not be required to sell a credit impaired available-for-sale debt security prior to the value recovering to the security’s amortized cost. In those situations, the entire credit-related impairment amount would be required to be recognized in earnings. We have evaluated the debt securities classified as available-for-sale and held-to-maturity at June 30, 2020 and have determined that no debt securities in an unrealized loss position are arising from credit related reasons and have therefore not recorded any allowances for debt securities in our ACL for the period. Unrealized gains and losses related to equity securities with readily determinable fair values are included in net income. The amortized cost and estimated fair value by type of investment security at June 30, 2020 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Total investment securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Available for Sale Debt Securities Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 2,973,842 $ 53,188 $ (3,617) $ 3,023,413 $ 3,023,413 Obligations of states and political subdivisions 71,293 3,041 (13) 74,321 74,321 Total investment securities $ 3,045,135 $ 56,229 $ (3,630) $ 3,097,734 $ 3,097,734 (1) Included in the carrying value of residential mortgage-backed securities are $506,404 of mortgage-backed securities issued by Ginnie Mae and $2,517,009 of mortgage-backed securities issued by Fannie Mae and Freddie Mac. The amortized cost and estimated fair value by type of investment security at December 31, 2019 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 2,400 $ — $ — $ 2,400 $ 2,400 Total investment securities $ 2,400 $ — $ — $ 2,400 $ 2,400 Available for Sale Gross Gross Estimated Amortized unrealized unrealized fair Carrying cost gains losses value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 3,285,623 $ 16,534 $ (16,609) $ 3,285,548 $ 3,285,548 Obligations of states and political subdivisions 90,447 2,933 (5) 93,375 93,375 Total investment securities $ 3,376,070 $ 19,467 $ (16,614) $ 3,378,923 $ 3,378,923 (1) Included in the carrying value of residential mortgage-backed securities are $521,247 of mortgage-backed securities issued by Ginnie Mae and $2,714,301 of mortgage-backed securities issued by Fannie Mae and Freddie. The amortized cost and estimated fair value of investment securities at June 30, 2020, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. Held to Maturity Available for Sale Amortized Estimated Amortized Estimated Cost fair value Cost fair value (Dollars in Thousands) Due in one year or less $ 1,200 $ 1,200 $ — $ — Due after one year through five years 2,200 2,200 — — Due after five years through ten years — — 355 356 Due after ten years — — 70,938 73,965 Residential mortgage-backed securities — — 2,973,842 3,023,413 Total investment securities $ 3,400 $ 3,400 $ 3,045,135 $ 3,097,734 Residential mortgage-backed securities are securities primarily issued by the Federal Home Loan Mortgage Corporation (“Freddie Mac”), Federal National Mortgage Association (“Fannie Mae”), or the Government National Mortgage Association (“Ginnie Mae”). Investments in residential mortgage-backed securities issued by Ginnie Mae are fully guaranteed by the U.S. Government. Investments in residential mortgage-backed securities issued by Freddie Mac and Fannie Mae are not fully guaranteed by the U.S. Government, however, we believe that the quality of the bonds is similar to other AAA rated bonds with limited credit risk, particularly given the placement of Fannie Mae and Freddie Mac into conservatorship by the federal government in early September 2008 and because securities issued by others that are collateralized by residential mortgage-backed securities issued by Fannie Mae or Freddie Mac are rated consistently as AAA rated securities. The amortized cost and fair value of available-for-sale debt investment securities pledged to qualify for fiduciary powers, to secure public monies as required by law, repurchase agreements and short-term fixed borrowings was $1,151,578,000 and $1,170,646,000, respectively, at June 30, 2020. Proceeds from the sale and calls of debt securities available-for-sale were $0 and $18,920,000 for the three and six months ended June 30, 2020, which included $0 and $0 of mortgage-backed securities, respectively. Gross gains of $0 and $0 and gross losses of $0 and $5 , respectively, were realized on the sales and calls for the three and six months ended June 30, 2020. Proceeds from the sale and call of debt securities available-for-sale were $19,275,000 and $60,695,000 for the three and six months ended June 30, 2019, which included $0 and $0 of mortgage-backed securities, respectively. Gross gains of $1 and $3 and gross losses of $7 and $13 were realized on the sales and calls for the three and six months ended June 30, 2019, respectively. Gross unrealized losses on debt investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual debt securities have been in a continuous unrealized loss position at June 30, 2020, were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ 588,298 $ (3,617) $ — $ — $ 588,298 $ (3,617) Obligations of states and political subdivisions 758 (13) — — 758 (13) $ 589,056 $ (3,630) $ — $ — $ 589,056 $ (3,630) Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2019 were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ 523,031 $ (2,269) $ 1,448,109 $ (14,340) $ 1,971,140 $ (16,609) Obligations of states and political subdivisions 766 (5) — — 766 (5) $ 523,797 $ (2,274) $ 1,448,109 $ (14,340) $ 1,971,906 $ (16,614) The unrealized losses on investments in residential mortgage-backed securities are primarily caused by changes in market interest rates. We have no intent to sell and will more than likely not be required to sell before a market price recovery or maturity of the securities; therefore, it is our conclusion that the investments in residential mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae are not considered other-than-temporarily impaired. Equity securities with readily determinable fair values consist primarily of Community Reinvestment Act funds. At June 30, 2020 and December 31, 2019, the balance in equity securities with readily determinable fair values recorded at fair value were $6,194,000 and $6,095,000 , respectively. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three and six months ended June 30, 2020 and the three and six months ended June 30, 2019: Three Months Ended June 30, 2020 (Dollars in Thousands) Net gains recognized during the period on equity securities $ 69 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 69 Six Months Ended June 30, 2020 (Dollars in Thousands) Net gains recognized during the period on equity securities $ 99 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 99 Three Months Ended June 30, 2019 (Dollars in Thousands) Net gains recognized during the period on equity securities $ 52 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 52 Six Months Ended June 30, 2019 (Dollars in Thousands) Net gains recognized during the period on equity securities $ 190 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 190 |
Other Borrowed Funds
Other Borrowed Funds | 6 Months Ended |
Jun. 30, 2020 | |
Other Borrowed Funds | |
Other Borrowed Funds | Note 7 — Other Borrowed Funds Other borrowed funds include FHLB borrowings, which are short-term and long-term borrowings issued by the FHLB of Dallas and the FHLB of Topeka at the market price offered at the time of funding. These borrowings are secured by residential mortgage-backed investment securities and a portion of our loan portfolio. At June 30, 2020, other borrowed funds totaled $436,419,000, a decrease of 30.3% from $626,511,000 at December 31, 2019. The decrease in borrowings can be primarily attributed to increased liquidity arising from deposit activity and principal and interest payments from available-for-sale debt securities. |
Junior Subordinated Deferrable
Junior Subordinated Deferrable Interest Debentures | 6 Months Ended |
Jun. 30, 2020 | |
Junior Subordinated Deferrable Interest Debentures | |
Junior Subordinated Interest Deferrable Debentures | Note 8 — Junior Subordinated Interest Deferrable Debentures As of June 30, 2020, we have five statutory business trusts under the laws of the State of Delaware, for the purpose of issuing trust preferred securities. The five statutory business trusts we formed (the “Trusts”) have each issued Capital and Common Securities and invested the proceeds thereof in an equivalent amount of junior subordinated debentures (“Debentures”) that we issued. As of June 30, 2020 and December 31, 2019, the principal amount of Debentures outstanding totaled $134,642,000. The Debentures are subordinated and junior in right of payment to all present and future senior indebtedness (as defined in the respective Indentures) and are pari passu terms of the Debentures are the same as the distribution rate and payment terms of the respective issues of Capital and Common Securities issued by the Trusts. We have fully and unconditionally guaranteed the obligations of each of the Trusts with respect to the Capital and Common Securities. We have the right, unless an Event of Default (as defined in the Indentures) has occurred and is continuing, to defer payment of interest on the Debentures for up to twenty consecutive quarterly periods on Trusts VIII, IX, X, XI and XII. If interest payments on any of the Debentures are deferred, distributions on both the Capital and Common Securities related to that Debenture would also be deferred. The redemption prior to maturity of any of the Debentures may require the prior approval of the Federal Reserve and/or other regulatory bodies. For financial reporting purposes, the Trusts are treated as our investments and not consolidated in our consolidated financial statements. Although the Capital and Common Securities issued by each of the Trusts are not included as a component of shareholders’ equity on the consolidated statement of condition, the Capital and Common Securities are treated as capital for regulatory purposes. Specifically, under applicable regulatory guidelines, the Capital and Common Securities issued by the Trusts qualify as Tier 1 capital up to a maximum of 25 % of Tier 1 capital on an aggregate basis. Any amount that exceeds the 25 % threshold would qualify as Tier 2 capital. At June 30, 2020 and December 31, 2019, the total $ The following table illustrates key information about each of the Capital and Common Securities and their interest rate at June 30, 2020: Junior Subordinated Deferrable Interest Repricing Interest Interest Optional Debentures Frequency Rate Rate Index(1) Maturity Date Redemption Date (1) (Dollars in Thousands) Trust VIII $ 25,774 Quarterly 4.27 % LIBOR + 3.05 October 2033 October 2008 Trust IX 41,238 Quarterly 3.05 % LIBOR + 1.62 October 2036 October 2011 Trust X 21,021 Quarterly 2.34 % LIBOR + 1.65 February 2037 February 2012 Trust XI 25,990 Quarterly 3.05 % LIBOR + 1.62 July 2037 July 2012 Trust XII 20,619 Quarterly 1.80 % LIBOR + 1.45 September 2037 September 2012 $ 134,642 (1) The Capital and Common Securities may be redeemed in whole or in part on any interest payment date after the Optional Redemption Date. |
Common Stock and Dividends
Common Stock and Dividends | 6 Months Ended |
Jun. 30, 2020 | |
Common Stock and Dividends | |
Common Stock and Dividends | Note 9 — Common Stock and Dividends We paid cash dividends of $0.55 per share on April 3, 2020 to record holders of our common stock on April 1, 2020. We paid cash dividends of $0.50 and $0.55 per share on April 15 and October 15, 2019 to record holders of our common stock on April 1 and September 30, 2019, respectively. In April 2009, the Board of Directors re-established a formal stock repurchase program that authorized the repurchase of up to $40 million of common stock within the following 12 months . Annually since then, including on March 12, 2020, the Board of Directors extended the repurchase program and for the second year authorized an increase to purchase up to $50 million of common stock during the 12 month period commencing on March 16, 2020 (previous annual stock repurchase programs began on April 9). Shares of common stock may be purchased from time to time on the open market or through privately negotiated transactions. Shares purchased in this program will be held in treasury for reissue for various corporate purposes, including employee compensation plans. During the first quarter of 2020, the Board of Directors adopted a Rule 10b5-1 trading plan, and intends to adopt additional Rule 10b5-1 trading plans, that will allow us to purchase shares of our common stock during certain trading blackout periods when we ordinarily would not be in the market due to trading restrictions in our insider trading policy. During the term of a Rule 10b5-1 trading plan, purchases of common stock are automatic to the extent the conditions of the plan’s trading instructions are met. Shares purchased under the Rule 10b5-1 trading plan will be held in treasury for reissue for various corporate purposes, including employee stock compensation plans. As of August 4, 2020, a total of 12,267,402 shares had been repurchased under all programs at a cost of $357,054,000. We are not obligated to purchase shares under our stock repurchase program outside of its Rule 10b5-1 trading plan. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Other Tax Matters | 6 Months Ended |
Jun. 30, 2020 | |
Commitments, Contingent Liabilities and Other Tax Matters | |
Commitments, Contingent Liabilities and Other Tax Matters | Note 10 — Commitments and Contingent Liabilities and Other Tax Matters We are involved in various legal proceedings that are in various stages of litigation. We have determined, based on discussions with its counsel, that any material loss in such actions, individually or in the aggregate, is remote or the damages sought, even if fully recovered, would not be considered material to our consolidated financial position or results of operations. However, many of these matters are in various stages of proceedings and further developments could cause management to revise its assessment of these matters. |
Capital Ratios
Capital Ratios | 6 Months Ended |
Jun. 30, 2020 | |
Capital Ratios | |
Capital Ratios | Note 11 — Capital Ratios Banks and bank holding companies are subject to various regulatory capital requirements administered by state and federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amount and classifications are also subject to qualitative judgements by regulators about components, risk-weighting and other factors. On November 21, 2017, the OCC, the Federal Reserve and the FDIC finalized a proposed rule that extends the current treatment under the regulatory capital rules for certain regulatory capital deductions and risk weights and certain minority interest requirements, as they apply to banking organizations that are not subject to the advanced approaches capital rules. Effective January 1, 2018, the rule also pauses the full transition to the Basel III treatment of mortgage servicing assets, certain deferred tax assets, investments in the capital of unconsolidated financial institutions and minority interests. The agencies are also considering whether to make adjustments to the capital rules in response to CECL (the FASB Standard relating to current expected credit loss) and its potential impact on regulatory capital. On December 7, 2017, the Basel Committee on Banking Supervision unveiled the latest round of its regulatory capital framework, commonly called “Basel IV.” The framework makes changes to the capital framework first introduced as “Basel III” in 2010. The committee targeted 2022-2027 as the timeframe for implementation by regulators in individual countries, including the U.S. federal bank regulatory agencies (after notice and comment). On May 24, 2018, the EGRRCPA was enacted and, among other things, it includes a simplified capital rule change which effectively exempts banks with assets of less than $10 billion that exceed the “community bank leverage ratio,” from all risk-based capital requirements, including Basel III and its predecessors. The federal banking agencies must establish the “community bank leverage ratio” (a ratio of tangible equity to average consolidated assets) between 8% and 10% before community banks can begin to take advantage of this regulatory relief provision. Some of the Subsidiary Banks, with assets of less than $10 billion, may qualify for this exemption. Additionally, under the EGRRCPA, qualified bank holding companies with assets of up to $3 billion (currently $1 billion) will be eligible for the Federal Reserve’s Small Bank Holding Company Policy Statement, which eases limitations on the issuance of debt by holding companies. On August 28, 2018, the Federal Reserve issued an interim final rule expanding the applicability of its Small Bank Holding Company Policy Statement. While holding companies that meet the conditions of the policy statement are excluded from consolidated capital requirements, their depository institutions continue to be subject to minimum capital requirements. Finally, for banks that continue to be subject to the risk-based capital rules of Basel III (e.g., 150%), certain commercial real estate loans that were formally classified as high volatility commercial real estate 31 (“HVCRE”) will not be subject to heightened risk weights if they meet certain criteria. Also, while acquisition, development, and construction (“ADC”) loans will generally be subject to heightened risk weights, certain exceptions will apply. On September 18, 2018, the federal banking agencies issued a proposed rule modifying the agencies’ capital rules for HVCRE. We had a CET1 to risk-weighted assets ratio of 18.56% on June 30, 2020 and 18.58 % on December 31, 2019. We had a Tier 1 capital-to-average-total-asset (leverage) ratio of 15.20% and 16.65%, risk-weighted Tier 1 capital ratio of 19.78% and 19.80% and risk-weighted total capital ratio of 20.78% and 20.46 % at June 30, 2020 and December 31, 2019, respectively. Our CET1 capital consists of common stock and related surplus, net of treasury stock, and retained earnings. We and our Subsidiary Banks elected to opt-out of the requirement to include most components of accumulated other comprehensive income (loss) in the calculation of CET1 capital. CET1 is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities and subject to transition provisions. Tier 1 capital includes CET1 capital and additional Tier 1 capital. Additional Tier 1 capital includes the Capital and Common Securities issued by the Trusts (see Note 8 above) up to a maximum of 25 % of Tier 1 capital on an aggregate basis. Any amount that exceeds the 25 % threshold qualifies as Tier 2 capital. As of June 30, 2020, the total of $134,642,000 of the Capital and Common Securities outstanding qualified as Tier 1 capital. We actively monitor the regulatory capital ratios to ensure that our Subsidiary Banks are well-capitalized under the regulatory framework. The CET1, Tier 1 and Total capital ratios are calculated by dividing the respective capital amounts by risk-weighted assets. Risk-weighted assets are calculated based on regulatory requirements and include total assets, excluding goodwill and other intangible assets, allocated by risk-weight category, and certain off-balance-sheet items, among other things. The leverage ratio is calculated by dividing Tier 1 capital by adjusted quarterly average total assets, which exclude goodwill and other intangible assets, among other things. We and our Subsidiary Banks are subject to the regulatory capital requirements administered by the Federal Reserve, and, for our Subsidiary Banks, the FDIC. Regulatory authorities can initiate certain mandatory actions if we or any of our Subsidiary Banks fail to meet the minimum capital requirements, which could have a direct material effect on our financial statements. Management believes, as of June 30, 2020, that we and each of our Subsidiary Banks meet all capital adequacy requirements to which we are subject. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Measurements | |
Assets and liabilities measured at fair value on a recurring basis | The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of June 30, 2020 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs June 30, 2020 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale debt securities Residential mortgage-backed securities $ 3,023,413 $ — $ 3,023,413 $ — States and political subdivisions 74,321 — 74,321 — Equity Securities 6,194 6,194 — — $ 3,103,928 $ 6,194 $ 3,097,734 $ — The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of December 31, 2019 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs December 31, 2019 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale securities Residential mortgage - backed securities $ 3,285,548 $ — $ 3,285,548 $ — States and political subdivisions 93,375 — 93,375 — Equity Securities 6,095 6,095 — — $ 3,385,018 $ 6,095 $ 3,378,923 $ — |
Assets measured at fair value on a non-recurring basis | The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended June 30, 2020 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets for Other Significant Net Provision Period ended Identical Observable Unobservable (Credit) June 30, Assets Inputs Inputs During 2020 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Watch-List doubtful loans $ 300 $ — $ — $ 300 $ 163 Other real estate owned 2,581 — — 2,581 537 The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended December 31, 2019 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets Other Significant Net (Credit) Year ended for Identical Observable Unobservable Provision December 31, Assets Inputs Inputs During 2019 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Impaired loans $ 826 $ — $ — $ 826 $ 43 Other real estate owned 21,614 — — 21,614 322 Equity investment without a readily determinable fair value 28,166 — — 28,166 4,775 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Loans | |
Summary of loans, by loan type | June 30, December 31, 2020 2019 (Dollars in Thousands) Commercial, financial and agricultural $ 3,967,980 $ 3,379,837 Real estate - mortgage 1,081,380 1,140,377 Real estate - construction 2,277,991 2,185,883 Consumer 42,401 47,800 Foreign 132,055 141,049 Total loans $ 7,501,807 $ 6,894,946 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Allowance for Credit Losses | |
Loans individually or collectively evaluated for their impairment and related allowance, by loan class | Three Months Ended June 30, 2020 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, 2020 $ 19,067 $ 37,421 $ 15,004 $ 1,758 $ 2,782 $ 8,452 $ 323 $ 466 $ 85,273 Losses charged to allowance (2,142) (19) — — — (121) (60) — (2,342) Recoveries credited to allowance 599 1 12 — 1 17 4 — 634 Net (losses) recoveries charged to allowance (1,543) (18) 12 — 1 (104) (56) — (1,708) Provision charged to operations 2,555 3,521 3,695 106 425 616 21 50 10,989 Balance at June 30, 2020 $ 20,079 $ 40,924 $ 18,711 $ 1,864 $ 3,208 $ 8,964 $ 288 $ 516 $ 94,554 Three Months Ended June 30, 2019 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, 2019 $ 11,412 $ 14,789 $ 25,880 $ 2,345 $ 3,546 $ 7,745 $ 462 $ 851 $ 67,030 Losses charged to allowance (5,016) — (6,878) — (1) (94) (55) — (12,044) Recoveries credited to allowance 408 56 15 — 10 55 8 — 552 Net (losses) recoveries charged to allowance (4,608) 56 (6,863) — 9 (39) (47) — (11,492) Provision charged to operations 4,976 428 (1,988) (496) 72 (394) 73 (6) 2,665 Balance at June 30, 2019 $ 11,780 $ 15,273 $ 17,029 $ 1,849 $ 3,627 $ 7,312 $ 488 $ 845 $ 58,203 Six Months Ended June 30, 2020 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, 2019 $ 11,145 $ 18,152 $ 16,533 $ 1,786 $ 3,762 $ 7,535 $ 542 $ 823 $ 60,278 Adoption of ASU 2016-13 4,247 13,391 (4,292) (355) (1,580) (429) (225) (410) 10,347 Losses charged to allowance (4,961) (19) (55) — (36) (121) (130) — (5,322) Recoveries credited to allowance 1,270 1 21 — 2 120 12 — 1,426 Net (losses) recoveries charged to allowance (3,691) (18) (34) — (34) (1) (118) — (3,896) Provision charged to operations 8,378 9,399 6,504 433 1,060 1,859 89 103 27,825 Balance at June 30, 2020 $ 20,079 $ 40,924 $ 18,711 $ 1,864 $ 3,208 $ 8,964 $ 288 $ 516 $ 94,554 Six Months Ended June 30, 2019 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, 2018 $ 12,596 $ 15,123 $ 19,353 $ 1,808 $ 3,467 $ 7,719 $ 447 $ 871 $ 61,384 Losses charged to allowance (7,780) — (6,879) — (2) (100) (118) — (14,879) Recoveries credited to allowance 1,046 76 298 — 11 157 25 — 1,613 Net (losses) recoveries charged to allowance (6,734) 76 (6,581) — 9 57 (93) — (13,266) Provision charged to operations 5,918 74 4,257 41 151 (464) 134 (26) 10,085 Balance at June 30, 2019 $ 11,780 $ 15,273 $ 17,029 $ 1,849 $ 3,627 $ 7,312 $ 488 $ 845 $ 58,203 June 30, 2020 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 1,595 $ 412 $ 1,805,896 $ 19,667 Commercial real estate: other construction & land development 914 116 2,277,077 40,808 Commercial real estate: farmland & commercial 536 — 1,971,098 18,711 Commercial real estate: multifamily 137 — 188,718 1,864 Residential: first lien 252 — 421,286 3,208 Residential: junior lien 41 — 659,801 8,964 Consumer 3 — 42,398 288 Foreign — — 132,055 516 Total $ 3,478 $ 528 $ 7,498,329 $ 94,026 December 31, 2019 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 1,935 $ 249 $ 1,290,725 $ 10,895 Commercial real estate: other construction & land development 938 116 2,184,945 18,037 Commercial real estate: farmland & commercial 1,208 — 1,895,539 16,533 Commercial real estate: multifamily 165 — 190,265 1,786 Residential: first lien 6,278 — 427,623 3,762 Residential: junior lien 692 — 705,784 7,535 Consumer 1,195 — 46,605 542 Foreign 264 — 140,785 823 Total $ 12,675 $ 365 $ 6,882,271 $ 59,913 |
Loans accounted on non-accrual basis, by loan class | June 30, 2020 December 31, 2019 (Dollars in Thousands) Domestic Commercial $ 1,595 $ 1,901 Commercial real estate: other construction & land development 914 938 Commercial real estate: farmland & commercial 536 1,208 Commercial real estate: multifamily 137 165 Residential: first lien 876 670 Residential: junior lien 41 — Consumer 3 4 Total non-accrual loans $ 4,102 $ 4,886 |
Impaired loans, by loan class | The following tables detail key information regarding our doubtful (previously referred to as impaired prior to the adoption of ASU 2016-13) loans by loan class at December 31, 2019, in accordance with ASC 310 prior to the adoption of ASU 2016-13: December 31, 2019 Unpaid Average Recorded Principal Related Recorded Interest Investment Balance Allowance Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ 510 $ 516 $ 249 $ 514 $ — Commercial real estate: other construction & land development 126 169 116 131 — Total impaired loans with related allowance $ 636 $ 685 $ 365 $ 645 $ — December 31, 2019 Unpaid Average Recorded Principal Recorded Interest Investment Balance Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 1,425 $ 1,516 $ 16,194 $ 3 Commercial real estate: other construction & land development 812 1,133 2,151 — Commercial real estate: farmland & commercial 1,208 1,841 36,632 — Commercial real estate: multifamily 165 168 565 — Residential: first lien 6,278 6,445 7,136 305 Residential: junior lien 692 692 976 44 Consumer 1,195 1,196 1,211 2 Foreign 264 264 327 14 Total impaired loans with no related allowance $ 12,039 $ 13,255 $ 65,192 $ 368 The following table details key information regarding our doubtful (previously referred to as impaired prior to the adoption of ASU 2016-13) loans by loan class at June 30, 2019, in accordance with ASC 310 prior to the adoption of ASU 2016-13: June 30, 2019 Quarter to Date Year to Date Average Average Recorded Interest Recorded Interest Investment Recognized Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ 1,316 $ — $ 1,322 $ — Commercial real estate: other construction & land development 132 — 133 — Commercial real estate: farmland & commercial 2,369 — 2,369 — Total impaired loans with related allowance $ 3,817 $ — $ 3,824 $ — June 30, 2019 Quarter to Date Year to Date Average Average Recorded Interest Recorded Interest Investment Recognized Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 16,788 $ 1 $ 17,078 $ 1 Commercial real estate: other construction & land development 1,792 — 1,813 — Commercial real estate: farmland & commercial 14,203 — 20,551 — Commercial real estate: multifamily 507 — 507 — Residential: first lien 6,480 78 6,579 153 Residential: junior lien 1,028 11 1,033 22 Consumer 1,046 — 1,063 — Foreign 281 3 285 6 Total impaired loans with no related allowance $ 42,125 $ 93 $ 48,909 $ 182 |
Loans accounted for as trouble debt restructuring, by Watch List Doubtful loans | June 30, 2020 December 31, 2019 (Dollars in Thousands) Domestic Commercial $ — $ 32 Residential: first lien 3,834 5,608 Residential: junior lien 670 692 Consumer 1,007 1,192 Foreign 249 264 Total troubled debt restructuring $ 5,760 $ 7,788 |
Information regarding the aging of past due loans, by loan class | June 30, 2020 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 1,910 $ 7,610 $ 2,057 $ 1,339 $ 11,577 $ 1,795,914 $ 1,807,491 Commercial real estate: other construction & land development 2,821 653 118 118 3,592 2,274,399 2,277,991 Commercial real estate: farmland & commercial 24,359 1,036 49,827 49,584 75,222 1,896,412 1,971,634 Commercial real estate: multifamily 124 — — — 124 188,731 188,855 Residential: first lien 5,157 1,944 4,013 3,434 11,114 410,424 421,538 Residential: junior lien 739 1,784 1,418 1,377 3,941 655,901 659,842 Consumer 488 40 119 116 647 41,754 42,401 Foreign 2,699 174 277 277 3,150 128,905 132,055 Total past due loans $ 38,297 $ 13,241 $ 57,829 $ 56,245 $ 109,367 $ 7,392,440 $ 7,501,807 December 31, 2019 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 3,134 $ 626 $ 1,292 $ 421 $ 5,052 $ 1,287,608 $ 1,292,660 Commercial real estate: other construction & land development 509 55 — — 564 2,185,319 2,185,883 Commercial real estate: farmland & commercial 8,058 2,031 54,928 54,878 65,017 1,831,730 1,896,747 Commercial real estate: multifamily 313 — 165 — 478 189,952 190,430 Residential: first lien 3,229 1,670 3,660 3,107 8,559 425,342 433,901 Residential: junior lien 1,112 477 1,200 1,200 2,789 703,687 706,476 Consumer 467 75 88 88 630 47,170 47,800 Foreign 1,347 3 11 11 1,361 139,688 141,049 Total past due loans $ 18,169 $ 4,937 $ 61,344 $ 59,705 $ 84,450 $ 6,810,496 $ 6,894,946 |
Summary of the loan portfolio by credit quality indicator, by loan class | 2020 2019 2018 2017 2016 Prior Total (Dollars in Thousands) Balance at June 30, 2020 Domestic Commercial Pass $ 909,494 $ 373,023 $ 212,414 $ 140,118 $ 20,898 $ 12,645 $ 1,668,592 Special Review 71,497 569 — — — — 72,066 Watch List - Pass 530 33,949 29,644 — — 25 64,148 Watch List - Substandard — 3 708 — 378 — 1,089 Watch List - Doubtful 813 330 214 221 18 — 1,596 Total Commercial $ 982,334 $ 407,874 $ 242,980 $ 140,339 $ 21,294 $ 12,670 $ 1,807,491 Commercial real estate: other construction & land development Pass $ 426,830 $ 951,765 $ 622,403 $ 186,950 $ 14,952 $ 13,165 $ 2,216,065 Special Review 16,106 — — — — — 16,106 Watch List - Pass 16,587 27,782 160 — — 1 44,530 Watch List - Substandard 376 — — — — — 376 Watch List - Doubtful 120 793 — — — 1 914 Total Commercial real estate: other construction & land development $ 460,019 $ 980,340 $ 622,563 $ 186,950 $ 14,952 $ 13,167 $ 2,277,991 Commercial real estate: farmland & commercial Pass $ 373,126 $ 558,263 $ 339,142 $ 184,595 $ 201,642 $ 169,981 $ 1,826,749 Special Review 938 — 4,702 175 3,207 420 9,442 Watch List - Pass 22,701 7,933 22,300 8,878 7,448 — 69,260 Watch List - Substandard 3,371 55,639 192 2,312 637 3,496 65,647 Watch List - Doubtful — 243 — 39 — 254 536 Total Commercial real estate: farmland & commercial $ 400,136 $ 622,078 $ 366,336 $ 195,999 $ 212,934 $ 174,151 $ 1,971,634 Commercial real estate: multifamily Pass $ 24,964 $ 59,134 $ 17,867 $ 64,576 $ 9,704 $ 12,473 $ 188,718 Watch List - Doubtful 137 — — — — — 137 Total Commercial real estate: multifamily $ 25,101 $ 59,134 $ 17,867 $ 64,576 $ 9,704 $ 12,473 $ 188,855 Residential: first lien Pass $ 41,868 $ 71,145 $ 83,502 $ 61,827 $ 39,018 $ 123,421 $ 420,781 Special Review — — — — 245 — 245 Watch List - Pass — 14 129 — — — 143 Watch List - Substandard — — 67 — 50 — 117 Watch List - Doubtful 89 — — — 91 72 252 Total Residential: first lien $ 41,957 $ 71,159 $ 83,698 $ 61,827 $ 39,404 $ 123,493 $ 421,538 Residential: junior lien Pass $ 111,607 $ 139,225 $ 85,274 $ 106,161 $ 82,878 $ 133,846 $ 658,991 Special Review — — — 810 — — 810 Watch List- Doubtful — — 41 — — — 41 Total Residential: junior lien $ 111,607 $ 139,225 $ 85,315 $ 106,971 $ 82,878 $ 133,846 $ 659,842 Consumer Pass $ 19,513 $ 18,497 $ 2,387 $ 404 $ 152 $ 1,445 $ 42,398 Watch List - Doubtful — — — — — 3 3 Total Consumer $ 19,513 $ 18,497 $ 2,387 $ 404 $ 152 $ 1,448 $ 42,401 Foreign Pass $ 50,234 $ 49,072 $ 14,545 $ 6,972 $ 4,155 $ 7,077 $ 132,055 Total Foreign $ 50,234 $ 49,072 $ 14,545 $ 6,972 $ 4,155 $ 7,077 $ 132,055 Total Loans $ 2,090,901 $ 2,347,379 $ 1,435,691 $ 764,038 $ 385,473 $ 478,325 $ 7,501,807 December 31, 2019 Special Watch Watch List— Watch List— Pass Review List—Pass Substandard Impaired (Dollars in Thousands) Domestic Commercial $ 1,228,110 $ 569 $ 39 $ 62,007 $ 1,935 Commercial real estate: other construction & land development 2,090,370 18,721 41,949 33,905 938 Commercial real estate: farmland & commercial 1,710,446 13,184 20,183 151,726 1,208 Commercial real estate: multifamily 190,265 — — — 165 Residential: first lien 426,546 253 144 680 6,278 Residential: junior lien 704,958 826 — — 692 Consumer 46,605 — — — 1,195 Foreign 140,785 — — — 264 Total $ 6,538,085 $ 33,553 $ 62,315 $ 248,318 $ 12,675 |
Stock Options (Tables)
Stock Options (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stock Options | |
Summary of option activity under stock option plans | Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price term (years) value ($) (in Thousands) Options outstanding at December 31, 2019 658,588 $ 27.55 Plus: Options granted 29,500 17.57 Less: Options exercised 13,611 21.15 Options expired — — Options forfeited 9,451 30.35 Options outstanding at June 30, 2020 665,026 27.20 5.49 $ 4,591 Options fully vested and exercisable at June 30, 2020 411,269 $ 22.86 4.06 $ 3,968 |
Investment Securities and Equ_2
Investment Securities and Equity Securities with Readily Determinable Fair Values (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investment Securities and Equity Securities with Readily Determinable Fair Values | |
Amortized cost and estimated fair value by type of investment security | The amortized cost and estimated fair value by type of investment security at June 30, 2020 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Total investment securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Available for Sale Debt Securities Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 2,973,842 $ 53,188 $ (3,617) $ 3,023,413 $ 3,023,413 Obligations of states and political subdivisions 71,293 3,041 (13) 74,321 74,321 Total investment securities $ 3,045,135 $ 56,229 $ (3,630) $ 3,097,734 $ 3,097,734 (1) Included in the carrying value of residential mortgage-backed securities are $506,404 of mortgage-backed securities issued by Ginnie Mae and $2,517,009 of mortgage-backed securities issued by Fannie Mae and Freddie Mac. The amortized cost and estimated fair value by type of investment security at December 31, 2019 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 2,400 $ — $ — $ 2,400 $ 2,400 Total investment securities $ 2,400 $ — $ — $ 2,400 $ 2,400 Available for Sale Gross Gross Estimated Amortized unrealized unrealized fair Carrying cost gains losses value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 3,285,623 $ 16,534 $ (16,609) $ 3,285,548 $ 3,285,548 Obligations of states and political subdivisions 90,447 2,933 (5) 93,375 93,375 Total investment securities $ 3,376,070 $ 19,467 $ (16,614) $ 3,378,923 $ 3,378,923 (1) Included in the carrying value of residential mortgage-backed securities are $521,247 of mortgage-backed securities issued by Ginnie Mae and $2,714,301 of mortgage-backed securities issued by Fannie Mae and Freddie. |
Amortized cost and fair value of investment securities, by contractual maturity | Held to Maturity Available for Sale Amortized Estimated Amortized Estimated Cost fair value Cost fair value (Dollars in Thousands) Due in one year or less $ 1,200 $ 1,200 $ — $ — Due after one year through five years 2,200 2,200 — — Due after five years through ten years — — 355 356 Due after ten years — — 70,938 73,965 Residential mortgage-backed securities — — 2,973,842 3,023,413 Total investment securities $ 3,400 $ 3,400 $ 3,045,135 $ 3,097,734 |
Gross unrealized losses on investment securities and the related fair value | Gross unrealized losses on debt investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual debt securities have been in a continuous unrealized loss position at June 30, 2020, were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ 588,298 $ (3,617) $ — $ — $ 588,298 $ (3,617) Obligations of states and political subdivisions 758 (13) — — 758 (13) $ 589,056 $ (3,630) $ — $ — $ 589,056 $ (3,630) Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2019 were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ 523,031 $ (2,269) $ 1,448,109 $ (14,340) $ 1,971,140 $ (16,609) Obligations of states and political subdivisions 766 (5) — — 766 (5) $ 523,797 $ (2,274) $ 1,448,109 $ (14,340) $ 1,971,906 $ (16,614) |
Summary of unrealized and realized gains and losses recognized in net income on equity securities | Three Months Ended June 30, 2020 (Dollars in Thousands) Net gains recognized during the period on equity securities $ 69 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 69 Six Months Ended June 30, 2020 (Dollars in Thousands) Net gains recognized during the period on equity securities $ 99 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 99 Three Months Ended June 30, 2019 (Dollars in Thousands) Net gains recognized during the period on equity securities $ 52 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 52 Six Months Ended June 30, 2019 (Dollars in Thousands) Net gains recognized during the period on equity securities $ 190 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 190 |
Junior Subordinated Deferrabl_2
Junior Subordinated Deferrable Interest Debentures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Junior Subordinated Deferrable Interest Debentures | |
Junior subordinated deferrable interest debentures, major types of business trusts | Junior Subordinated Deferrable Interest Repricing Interest Interest Optional Debentures Frequency Rate Rate Index(1) Maturity Date Redemption Date (1) (Dollars in Thousands) Trust VIII $ 25,774 Quarterly 4.27 % LIBOR + 3.05 October 2033 October 2008 Trust IX 41,238 Quarterly 3.05 % LIBOR + 1.62 October 2036 October 2011 Trust X 21,021 Quarterly 2.34 % LIBOR + 1.65 February 2037 February 2012 Trust XI 25,990 Quarterly 3.05 % LIBOR + 1.62 July 2037 July 2012 Trust XII 20,619 Quarterly 1.80 % LIBOR + 1.45 September 2037 September 2012 $ 134,642 (1) The Capital and Common Securities may be redeemed in whole or in part on any interest payment date after the Optional Redemption Date. |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Thousands | Jan. 01, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)subsidiarysegment | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) |
Basis of presentation | |||||||
Number of operating segments | segment | 1 | ||||||
Number of active operating bank subsidiaries | subsidiary | 5 | ||||||
Right-of-use asset amortization | $ 338 | $ 245 | $ 658 | $ 459 | |||
Retained earnings | $ 2,233,455 | $ 2,233,455 | $ 2,200,568 | ||||
ASU 2016-02 | |||||||
Basis of presentation | |||||||
Right-of-use asset | $ 6,400 | ||||||
Statement of Financial Position Location | us-gaap:OtherAssets | ||||||
Lease liability | $ 6,400 | ||||||
Statement of Financial Position Location | us-gaap:OtherLiabilities | ||||||
ASU 2016-13 | Restatement Adjustment | |||||||
Basis of presentation | |||||||
Percentage of allowance for loan losses | 17.20% | ||||||
Retained earnings | $ 8,300 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value By Level) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Available for sale debt securities | $ 3,097,734 | $ 3,378,923 |
Equity Securities | 6,194 | 6,095 |
Marketable Securities | 3,107,328 | 3,387,418 |
Assets/liabilities measured at fair value | Residential mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities | 3,023,413 | 3,285,548 |
Assets/liabilities measured at fair value | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities | 74,321 | 93,375 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | ||
Assets: | ||
Marketable Securities | 3,103,928 | 3,385,018 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | Residential mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities | 3,023,413 | 3,285,548 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities | 74,321 | 93,375 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | Equity securities with readily determinable fair values | ||
Assets: | ||
Equity Securities | 6,194 | 6,095 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Marketable Securities | 6,194 | 6,095 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities with readily determinable fair values | ||
Assets: | ||
Equity Securities | 6,194 | 6,095 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Marketable Securities | 3,097,734 | 3,378,923 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities | 3,023,413 | 3,285,548 |
Measured on a recurring basis: | Assets/liabilities measured at fair value | Significant Other Observable Inputs (Level 2) | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities | $ 74,321 | $ 93,375 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value Measurement and Assumptions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Assets: | |||
Impaired Loans | $ 1,896 | $ 1,896 | $ 2,955 |
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3 | |||
Impaired commercial collateral dependent receivables appraisals to determine fair value within immediately preceding twelve months | 0 | 0 | 1,426 |
Impaired collateral dependent commercial loans with internal evaluation completed within last twelve months | 1,354 | 1,354 | 847 |
Charges to allowance for probable loan losses in connection with other real estate owned | 18 | 22 | 9,611 |
Adjustment to fair value in connection with other real estate owned | 0 | 537 | 322 |
Measured on a non-recurring basis | |||
Non-financial assets: | |||
Equity investments without a readily determinable fair value | 4,775 | ||
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3 | |||
Change in net provision, impaired loans | 43 | ||
Change in net provision, other real estate owned | 537 | 537 | 322 |
Measured on a non-recurring basis | Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
Impaired Loans | 826 | ||
Non-financial assets: | |||
Other real estate owned | 2,581 | 2,581 | 21,614 |
Equity investments without a readily determinable fair value | 28,166 | ||
Measured on a non-recurring basis | Assets/liabilities measured at fair value | |||
Assets: | |||
Impaired Loans | 826 | ||
Non-financial assets: | |||
Other real estate owned | 2,581 | 2,581 | 21,614 |
Equity investments without a readily determinable fair value | $ 28,166 | ||
Watch List - Doubtful | Measured on a non-recurring basis | |||
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3 | |||
Change in net provision, impaired loans | 163 | 163 | |
Watch List - Doubtful | Measured on a non-recurring basis | Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
Impaired Loans | 300 | 300 | |
Watch List - Doubtful | Measured on a non-recurring basis | Assets/liabilities measured at fair value | |||
Assets: | |||
Impaired Loans | $ 300 | $ 300 |
Fair Value Measurements (Other
Fair Value Measurements (Other Assumptions) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Deposits | ||
Carrying amount of time deposits | $ 2,061,045 | $ 2,012,300 |
Significant Unobservable Inputs (Level 3) | ||
Loans | ||
Carrying amount of fixed rate performing loans | 1,937,171 | 1,503,811 |
Estimated fair value of fixed rate performing loans | 1,859,534 | 1,481,239 |
Deposits | ||
Carrying amount of time deposits | 2,061,045 | 2,012,300 |
Estimated fair value of time deposits | 2,055,954 | 2,011,950 |
Significant Other Observable Inputs (Level 2) | ||
Other borrowed funds | ||
Carrying amount of the long-term FHLB borrowings | 436,404 | 436,511 |
Estimated fair value of long-term FHLB borrowings | $ 500,000 | $ 465,017 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Summary of loans, by loan type | ||
Total loans | $ 7,501,807 | $ 6,894,946 |
Commercial, financial and agricultural | ||
Summary of loans, by loan type | ||
Total loans | 3,967,980 | 3,379,837 |
Real estate - mortgage | ||
Summary of loans, by loan type | ||
Total loans | 1,081,380 | 1,140,377 |
Real estate - construction | ||
Summary of loans, by loan type | ||
Total loans | 2,277,991 | 2,185,883 |
Consumer | ||
Summary of loans, by loan type | ||
Total loans | 42,401 | 47,800 |
Foreign | ||
Summary of loans, by loan type | ||
Total loans | $ 132,055 | $ 141,049 |
Allowance for Credit Losses (By
Allowance for Credit Losses (By Loan Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Allowance for probable loan losses | |||||
Balance at the beginning of the period | $ 85,273 | $ 67,030 | $ 61,384 | $ 60,278 | $ 61,384 |
Losses charged to allowance | (2,342) | (12,044) | (5,322) | (14,879) | |
Recoveries credited to allowance | 634 | 552 | 1,426 | 1,613 | |
Net losses (recoveries) charged to allowance | (1,708) | (11,492) | (3,896) | (13,266) | |
Provision charged to operations | 10,989 | 2,665 | 27,825 | 10,085 | |
Balance at the end of the period | 94,554 | 58,203 | 67,030 | 94,554 | 58,203 |
Watch - List Impaired | |||||
Allowance for probable loan losses | |||||
Losses charged to allowance | (9,500) | ||||
ASU 2016-13 | Restatement Adjustment | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 10,347 | ||||
Commercial Real Estate: farmland and commercial | Watch - List Impaired | |||||
Allowance for probable loan losses | |||||
Losses charged to allowance | (9,500) | ||||
Commercial, financial and agricultural | Commercial | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 12,596 | 12,596 | |||
Losses charged to allowance | (7,780) | ||||
Recoveries credited to allowance | 1,046 | ||||
Net losses (recoveries) charged to allowance | (6,734) | ||||
Provision charged to operations | 5,918 | ||||
Balance at the end of the period | 11,780 | 11,780 | |||
Commercial, financial and agricultural | Domestic | Commercial | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 19,067 | 11,412 | 11,145 | ||
Losses charged to allowance | (2,142) | (5,016) | (4,961) | ||
Recoveries credited to allowance | 599 | 408 | 1,270 | ||
Net losses (recoveries) charged to allowance | (1,543) | (4,608) | (3,691) | ||
Provision charged to operations | 2,555 | 4,976 | 8,378 | ||
Balance at the end of the period | 20,079 | 11,780 | 11,412 | 20,079 | 11,780 |
Commercial, financial and agricultural | Domestic | Commercial | ASU 2016-13 | Restatement Adjustment | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 4,247 | ||||
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 15,004 | 25,880 | 19,353 | 16,533 | 19,353 |
Losses charged to allowance | (6,878) | (55) | (6,879) | ||
Recoveries credited to allowance | 12 | 15 | 21 | 298 | |
Net losses (recoveries) charged to allowance | 12 | (6,863) | (34) | (6,581) | |
Provision charged to operations | 3,695 | (1,988) | 6,504 | 4,257 | |
Balance at the end of the period | 18,711 | 17,029 | 25,880 | 18,711 | 17,029 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | ASU 2016-13 | Restatement Adjustment | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | (4,292) | ||||
Commercial, financial and agricultural | Domestic | Commercial Real Estate: multifamily | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 1,758 | 2,345 | 1,808 | 1,786 | 1,808 |
Provision charged to operations | 106 | (496) | 433 | 41 | |
Balance at the end of the period | 1,864 | 1,849 | 2,345 | 1,864 | 1,849 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: multifamily | ASU 2016-13 | Restatement Adjustment | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | (355) | ||||
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 37,421 | 14,789 | 15,123 | 18,152 | 15,123 |
Losses charged to allowance | (19) | (19) | |||
Recoveries credited to allowance | 1 | 56 | 1 | 76 | |
Net losses (recoveries) charged to allowance | (18) | 56 | (18) | 76 | |
Provision charged to operations | 3,521 | 428 | 9,399 | 74 | |
Balance at the end of the period | 40,924 | 15,273 | 14,789 | 40,924 | 15,273 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | ASU 2016-13 | Restatement Adjustment | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 13,391 | ||||
Real estate - mortgage | Domestic | Residential First Lien | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 2,782 | 3,546 | 3,467 | 3,762 | 3,467 |
Losses charged to allowance | (1) | (36) | (2) | ||
Recoveries credited to allowance | 1 | 10 | 2 | 11 | |
Net losses (recoveries) charged to allowance | 1 | 9 | (34) | 9 | |
Provision charged to operations | 425 | 72 | 1,060 | 151 | |
Balance at the end of the period | 3,208 | 3,627 | 3,546 | 3,208 | 3,627 |
Real estate - mortgage | Domestic | Residential First Lien | ASU 2016-13 | Restatement Adjustment | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | (1,580) | ||||
Real estate - mortgage | Domestic | Residential Junior Lien | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 8,452 | 7,745 | 7,719 | 7,535 | 7,719 |
Losses charged to allowance | (121) | (94) | (121) | (100) | |
Recoveries credited to allowance | 17 | 55 | 120 | 157 | |
Net losses (recoveries) charged to allowance | (104) | (39) | (1) | 57 | |
Provision charged to operations | 616 | (394) | 1,859 | (464) | |
Balance at the end of the period | 8,964 | 7,312 | 7,745 | 8,964 | 7,312 |
Real estate - mortgage | Domestic | Residential Junior Lien | ASU 2016-13 | Restatement Adjustment | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | (429) | ||||
Consumer | Domestic | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 323 | 462 | 447 | 542 | 447 |
Losses charged to allowance | (60) | (55) | (130) | (118) | |
Recoveries credited to allowance | 4 | 8 | 12 | 25 | |
Net losses (recoveries) charged to allowance | (56) | (47) | (118) | (93) | |
Provision charged to operations | 21 | 73 | 89 | 134 | |
Balance at the end of the period | 288 | 488 | 462 | 288 | 488 |
Consumer | Domestic | ASU 2016-13 | Restatement Adjustment | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | (225) | ||||
Foreign | Foreign | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | 466 | 851 | 871 | 823 | 871 |
Provision charged to operations | 50 | (6) | 103 | (26) | |
Balance at the end of the period | $ 516 | $ 845 | $ 851 | 516 | $ 845 |
Foreign | Foreign | ASU 2016-13 | Restatement Adjustment | |||||
Allowance for probable loan losses | |||||
Balance at the beginning of the period | $ (410) |
Allowance for Credit Losses (Im
Allowance for Credit Losses (Impairment By Loan Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | $ 3,478 | $ 12,675 |
Loans Individually Evaluated for Impairment, Allowance | 528 | 365 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 7,498,329 | 6,882,271 |
Loans Collectively Evaluated for Impairment, Allowance | 94,026 | 59,913 |
Commercial, financial and agricultural | Domestic | Commercial | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 1,595 | 1,935 |
Loans Individually Evaluated for Impairment, Allowance | 412 | 249 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 1,805,896 | 1,290,725 |
Loans Collectively Evaluated for Impairment, Allowance | 19,667 | 10,895 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 536 | 1,208 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 1,971,098 | 1,895,539 |
Loans Collectively Evaluated for Impairment, Allowance | 18,711 | 16,533 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: multifamily | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 137 | 165 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 188,718 | 190,265 |
Loans Collectively Evaluated for Impairment, Allowance | 1,864 | 1,786 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 914 | 938 |
Loans Individually Evaluated for Impairment, Allowance | 116 | 116 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 2,277,077 | 2,184,945 |
Loans Collectively Evaluated for Impairment, Allowance | 40,808 | 18,037 |
Real estate - mortgage | Domestic | Residential First Lien | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 252 | 6,278 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 421,286 | 427,623 |
Loans Collectively Evaluated for Impairment, Allowance | 3,208 | 3,762 |
Real estate - mortgage | Domestic | Residential Junior Lien | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 41 | 692 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 659,801 | 705,784 |
Loans Collectively Evaluated for Impairment, Allowance | 8,964 | 7,535 |
Consumer | Domestic | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 3 | 1,195 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 42,398 | 46,605 |
Loans Collectively Evaluated for Impairment, Allowance | 288 | 542 |
Foreign | Foreign | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 264 | |
Loans Collectively Evaluated for Impairment, Recorded Investment | 132,055 | 140,785 |
Loans Collectively Evaluated for Impairment, Allowance | $ 516 | $ 823 |
Allowance for Credit Losses (No
Allowance for Credit Losses (Non-accrual Basis By Loan Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | $ 4,102 | $ 4,886 |
Commercial, financial and agricultural | Domestic | Commercial | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | 1,595 | 1,901 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | 536 | 1,208 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: multifamily | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | 137 | 165 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | 914 | 938 |
Real estate - mortgage | Domestic | Residential First Lien | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | 876 | 670 |
Real estate - mortgage | Domestic | Residential Junior Lien | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | 41 | |
Consumer | Domestic | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | $ 3 | $ 4 |
Allowance for Credit Losses (_2
Allowance for Credit Losses (Impaired Loans) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Aug. 05, 2020USD ($) | |
Recorded investment: | |||||
Total impaired loans with related allowance | $ 636,000 | ||||
Total impaired loans with no related allowance | 12,039,000 | ||||
Unpaid principal balance: | |||||
Total impaired loans with an allowance recorded | 685,000 | ||||
Total impaired loans with no related allowance recorded | 13,255,000 | ||||
Related Allowance | 365,000 | ||||
Average recorded investment: | |||||
Total impaired loans with an allowance recorded | $ 3,817,000 | $ 3,824,000 | 645,000 | ||
Total impaired loans with no related allowance recorded | 42,125,000 | 48,909,000 | 65,192,000 | ||
Interest Recognized | |||||
Total impaired loans with no related allowance recorded | 93,000 | 182,000 | 368,000 | ||
Total trouble debt restructuring | $ 5,760,000 | 7,788,000 | |||
Amount of loans with some degree of payment deferred | 1,853,640,000 | ||||
Loans | $ 7,501,807,000 | 6,894,946,000 | |||
Period of charge off for past due unsecured commercial loans | 90 days | ||||
Paycheck protection program loans | |||||
Interest Recognized | |||||
Period of time PPP loans cover payroll and certain other costs | 168 days | ||||
Interest rate on receivable | 1.00% | ||||
Number of loans approved and closed | 4,914 | ||||
Amount of loans approved and closed | $ 454,259,000 | ||||
Paycheck protection program loans | Loans made prior to June 5, 2020 | |||||
Interest Recognized | |||||
Term of receivable (in years) | 2 years | ||||
Paycheck protection program loans | Loans made after June 5, 2020 | |||||
Interest Recognized | |||||
Term of receivable (in years) | 5 years | ||||
Commercial, financial and agricultural | |||||
Interest Recognized | |||||
Loans | $ 3,967,980,000 | 3,379,837,000 | |||
Commercial, financial and agricultural | Domestic | Commercial | |||||
Recorded investment: | |||||
Total impaired loans with related allowance | 510,000 | ||||
Total impaired loans with no related allowance | 1,425,000 | ||||
Unpaid principal balance: | |||||
Total impaired loans with an allowance recorded | 516,000 | ||||
Total impaired loans with no related allowance recorded | 1,516,000 | ||||
Related Allowance | 249,000 | ||||
Average recorded investment: | |||||
Total impaired loans with an allowance recorded | 1,316,000 | 1,322,000 | 514,000 | ||
Total impaired loans with no related allowance recorded | 16,788,000 | 17,078,000 | 16,194,000 | ||
Interest Recognized | |||||
Total impaired loans with no related allowance recorded | 1,000 | 1,000 | 3,000 | ||
Total trouble debt restructuring | 32,000 | ||||
Loans | 1,807,491,000 | 1,292,660,000 | |||
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | |||||
Recorded investment: | |||||
Total impaired loans with no related allowance | 1,208,000 | ||||
Unpaid principal balance: | |||||
Total impaired loans with no related allowance recorded | 1,841,000 | ||||
Average recorded investment: | |||||
Total impaired loans with an allowance recorded | 2,369,000 | 2,369,000 | |||
Total impaired loans with no related allowance recorded | 14,203,000 | 20,551,000 | 36,632,000 | ||
Interest Recognized | |||||
Loans | 1,971,634,000 | 1,896,747,000 | |||
Commercial, financial and agricultural | Domestic | Commercial Real Estate: multifamily | |||||
Recorded investment: | |||||
Total impaired loans with no related allowance | 165,000 | ||||
Unpaid principal balance: | |||||
Total impaired loans with no related allowance recorded | 168,000 | ||||
Average recorded investment: | |||||
Total impaired loans with no related allowance recorded | 507,000 | 507,000 | 565,000 | ||
Interest Recognized | |||||
Loans | 188,855,000 | 190,430,000 | |||
Real estate - construction | |||||
Interest Recognized | |||||
Loans | 2,277,991,000 | 2,185,883,000 | |||
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | |||||
Recorded investment: | |||||
Total impaired loans with related allowance | 126,000 | ||||
Total impaired loans with no related allowance | 812,000 | ||||
Unpaid principal balance: | |||||
Total impaired loans with an allowance recorded | 169,000 | ||||
Total impaired loans with no related allowance recorded | 1,133,000 | ||||
Related Allowance | 116,000 | ||||
Average recorded investment: | |||||
Total impaired loans with an allowance recorded | 132,000 | 133,000 | 131,000 | ||
Total impaired loans with no related allowance recorded | 1,792,000 | 1,813,000 | 2,151,000 | ||
Interest Recognized | |||||
Loans | 2,277,991,000 | 2,185,883,000 | |||
Real estate - mortgage | |||||
Interest Recognized | |||||
Loans | 1,081,380,000 | 1,140,377,000 | |||
Real estate - mortgage | Domestic | Residential First Lien | |||||
Recorded investment: | |||||
Total impaired loans with no related allowance | 6,278,000 | ||||
Unpaid principal balance: | |||||
Total impaired loans with no related allowance recorded | 6,445,000 | ||||
Average recorded investment: | |||||
Total impaired loans with no related allowance recorded | 6,480,000 | 6,579,000 | 7,136,000 | ||
Interest Recognized | |||||
Total impaired loans with no related allowance recorded | 78,000 | 153,000 | 305,000 | ||
Total trouble debt restructuring | 3,834,000 | 5,608,000 | |||
Loans | 421,538,000 | 433,901,000 | |||
Real estate - mortgage | Domestic | Residential Junior Lien | |||||
Recorded investment: | |||||
Total impaired loans with no related allowance | 692,000 | ||||
Unpaid principal balance: | |||||
Total impaired loans with no related allowance recorded | 692,000 | ||||
Average recorded investment: | |||||
Total impaired loans with no related allowance recorded | 1,028,000 | 1,033,000 | 976,000 | ||
Interest Recognized | |||||
Total impaired loans with no related allowance recorded | 11,000 | 22,000 | 44,000 | ||
Total trouble debt restructuring | 670,000 | 692,000 | |||
Loans | 659,842,000 | 706,476,000 | |||
Consumer | |||||
Interest Recognized | |||||
Loans | 42,401,000 | 47,800,000 | |||
Consumer | Domestic | |||||
Recorded investment: | |||||
Total impaired loans with no related allowance | 1,195,000 | ||||
Unpaid principal balance: | |||||
Total impaired loans with no related allowance recorded | 1,196,000 | ||||
Average recorded investment: | |||||
Total impaired loans with no related allowance recorded | 1,046,000 | 1,063,000 | 1,211,000 | ||
Interest Recognized | |||||
Total impaired loans with no related allowance recorded | 2,000 | ||||
Total trouble debt restructuring | 1,007,000 | 1,192,000 | |||
Loans | 42,401,000 | 47,800,000 | |||
Foreign | |||||
Interest Recognized | |||||
Loans | 132,055,000 | 141,049,000 | |||
Foreign | Foreign | |||||
Recorded investment: | |||||
Total impaired loans with no related allowance | 264,000 | ||||
Unpaid principal balance: | |||||
Total impaired loans with no related allowance recorded | 264,000 | ||||
Average recorded investment: | |||||
Total impaired loans with no related allowance recorded | 281,000 | 285,000 | 327,000 | ||
Interest Recognized | |||||
Total impaired loans with no related allowance recorded | $ 3,000 | $ 6,000 | 14,000 | ||
Total trouble debt restructuring | 249,000 | 264,000 | |||
Loans | $ 132,055,000 | $ 141,049,000 |
Allowance for Credit Losses (Ag
Allowance for Credit Losses (Aging By Loan Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | $ 56,245 | $ 59,705 |
Past due | 109,367 | 84,450 |
Loans, current | 7,392,440 | 6,810,496 |
Total loans | 7,501,807 | 6,894,946 |
30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 38,297 | 18,169 |
60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 13,241 | 4,937 |
90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | 57,829 | 61,344 |
Commercial, financial and agricultural | ||
Financing receivable recorded investment | ||
Total loans | 3,967,980 | 3,379,837 |
Commercial, financial and agricultural | Domestic | Commercial | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 1,339 | 421 |
Past due | 11,577 | 5,052 |
Loans, current | 1,795,914 | 1,287,608 |
Total loans | 1,807,491 | 1,292,660 |
Commercial, financial and agricultural | Domestic | Commercial | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 1,910 | 3,134 |
Commercial, financial and agricultural | Domestic | Commercial | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 7,610 | 626 |
Commercial, financial and agricultural | Domestic | Commercial | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | 2,057 | 1,292 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 49,584 | 54,878 |
Past due | 75,222 | 65,017 |
Loans, current | 1,896,412 | 1,831,730 |
Total loans | 1,971,634 | 1,896,747 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 24,359 | 8,058 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 1,036 | 2,031 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | 49,827 | 54,928 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: multifamily | ||
Financing receivable recorded investment | ||
Past due | 124 | 478 |
Loans, current | 188,731 | 189,952 |
Total loans | 188,855 | 190,430 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: multifamily | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 124 | 313 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: multifamily | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | 165 | |
Real estate - construction | ||
Financing receivable recorded investment | ||
Total loans | 2,277,991 | 2,185,883 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 118 | |
Past due | 3,592 | 564 |
Loans, current | 2,274,399 | 2,185,319 |
Total loans | 2,277,991 | 2,185,883 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 2,821 | 509 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 653 | 55 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | 118 | |
Real estate - mortgage | ||
Financing receivable recorded investment | ||
Total loans | 1,081,380 | 1,140,377 |
Real estate - mortgage | Domestic | Residential First Lien | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 3,434 | 3,107 |
Past due | 11,114 | 8,559 |
Loans, current | 410,424 | 425,342 |
Total loans | 421,538 | 433,901 |
Real estate - mortgage | Domestic | Residential First Lien | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 5,157 | 3,229 |
Real estate - mortgage | Domestic | Residential First Lien | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 1,944 | 1,670 |
Real estate - mortgage | Domestic | Residential First Lien | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | 4,013 | 3,660 |
Real estate - mortgage | Domestic | Residential Junior Lien | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 1,377 | 1,200 |
Past due | 3,941 | 2,789 |
Loans, current | 655,901 | 703,687 |
Total loans | 659,842 | 706,476 |
Real estate - mortgage | Domestic | Residential Junior Lien | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 739 | 1,112 |
Real estate - mortgage | Domestic | Residential Junior Lien | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 1,784 | 477 |
Real estate - mortgage | Domestic | Residential Junior Lien | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | 1,418 | 1,200 |
Consumer | ||
Financing receivable recorded investment | ||
Total loans | 42,401 | 47,800 |
Consumer | Domestic | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 116 | 88 |
Past due | 647 | 630 |
Loans, current | 41,754 | 47,170 |
Total loans | 42,401 | 47,800 |
Consumer | Domestic | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 488 | 467 |
Consumer | Domestic | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 40 | 75 |
Consumer | Domestic | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | 119 | 88 |
Foreign | ||
Financing receivable recorded investment | ||
Total loans | 132,055 | 141,049 |
Foreign | Foreign | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 277 | 11 |
Past due | 3,150 | 1,361 |
Loans, current | 128,905 | 139,688 |
Total loans | 132,055 | 141,049 |
Foreign | Foreign | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Past due | 2,699 | 1,347 |
Foreign | Foreign | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Past due | 174 | 3 |
Foreign | Foreign | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Past due | $ 277 | $ 11 |
Allowance for Credit Losses (Po
Allowance for Credit Losses (Portfolio Credit Quality) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Loan portfolio by credit quality indicator | ||
2020 | $ 2,090,901 | |
2019 | 2,347,379 | |
2018 | 1,435,691 | |
2017 | 764,038 | |
2016 | 385,473 | |
Prior | 478,325 | |
Total loans | 7,501,807 | $ 6,894,946 |
Pass | ||
Loan portfolio by credit quality indicator | ||
Total loans | 6,538,085 | |
Special Review | ||
Loan portfolio by credit quality indicator | ||
Total loans | 33,553 | |
Watch List - Pass | ||
Loan portfolio by credit quality indicator | ||
Total loans | 62,315 | |
Watch List - Substandard | ||
Loan portfolio by credit quality indicator | ||
Total loans | 248,318 | |
Commercial, financial and agricultural | ||
Loan portfolio by credit quality indicator | ||
Total loans | 3,967,980 | 3,379,837 |
Commercial, financial and agricultural | Domestic | Commercial | ||
Loan portfolio by credit quality indicator | ||
2020 | 982,334 | |
2019 | 407,874 | |
2018 | 242,980 | |
2017 | 140,339 | |
2016 | 21,294 | |
Prior | 12,670 | |
Total loans | 1,807,491 | 1,292,660 |
Commercial, financial and agricultural | Domestic | Commercial | Pass | ||
Loan portfolio by credit quality indicator | ||
2020 | 909,494 | |
2019 | 373,023 | |
2018 | 212,414 | |
2017 | 140,118 | |
2016 | 20,898 | |
Prior | 12,645 | |
Total loans | 1,668,592 | 1,228,110 |
Commercial, financial and agricultural | Domestic | Commercial | Special Review | ||
Loan portfolio by credit quality indicator | ||
2020 | 71,497 | |
2019 | 569 | |
Total loans | 72,066 | 569 |
Commercial, financial and agricultural | Domestic | Commercial | Watch List - Pass | ||
Loan portfolio by credit quality indicator | ||
2020 | 530 | |
2019 | 33,949 | |
2018 | 29,644 | |
Prior | 25 | |
Total loans | 64,148 | 39 |
Commercial, financial and agricultural | Domestic | Commercial | Watch List - Substandard | ||
Loan portfolio by credit quality indicator | ||
2019 | 3 | |
2018 | 708 | |
2016 | 378 | |
Total loans | 1,089 | 62,007 |
Commercial, financial and agricultural | Domestic | Commercial | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
2020 | 813 | |
2019 | 330 | |
2018 | 214 | |
2017 | 221 | |
2016 | 18 | |
Total loans | 1,596 | |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | ||
Loan portfolio by credit quality indicator | ||
2020 | 400,136 | |
2019 | 622,078 | |
2018 | 366,336 | |
2017 | 195,999 | |
2016 | 212,934 | |
Prior | 174,151 | |
Total loans | 1,971,634 | 1,896,747 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | Pass | ||
Loan portfolio by credit quality indicator | ||
2020 | 373,126 | |
2019 | 558,263 | |
2018 | 339,142 | |
2017 | 184,595 | |
2016 | 201,642 | |
Prior | 169,981 | |
Total loans | 1,826,749 | 1,710,446 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | Special Review | ||
Loan portfolio by credit quality indicator | ||
2020 | 938 | |
2018 | 4,702 | |
2017 | 175 | |
2016 | 3,207 | |
Prior | 420 | |
Total loans | 9,442 | 13,184 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | Watch List - Pass | ||
Loan portfolio by credit quality indicator | ||
2020 | 22,701 | |
2019 | 7,933 | |
2018 | 22,300 | |
2017 | 8,878 | |
2016 | 7,448 | |
Total loans | 69,260 | 20,183 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | Watch List - Substandard | ||
Loan portfolio by credit quality indicator | ||
2020 | 3,371 | |
2019 | 55,639 | |
2018 | 192 | |
2017 | 2,312 | |
2016 | 637 | |
Prior | 3,496 | |
Total loans | 65,647 | 151,726 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
2019 | 243 | |
2017 | 39 | |
Prior | 254 | |
Total loans | 536 | |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: multifamily | ||
Loan portfolio by credit quality indicator | ||
2020 | 25,101 | |
2019 | 59,134 | |
2018 | 17,867 | |
2017 | 64,576 | |
2016 | 9,704 | |
Prior | 12,473 | |
Total loans | 188,855 | 190,430 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: multifamily | Pass | ||
Loan portfolio by credit quality indicator | ||
2020 | 24,964 | |
2019 | 59,134 | |
2018 | 17,867 | |
2017 | 64,576 | |
2016 | 9,704 | |
Prior | 12,473 | |
Total loans | 188,718 | 190,265 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: multifamily | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
2020 | 137 | |
Total loans | 137 | |
Real estate - construction | ||
Loan portfolio by credit quality indicator | ||
Total loans | 2,277,991 | 2,185,883 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | ||
Loan portfolio by credit quality indicator | ||
2020 | 460,019 | |
2019 | 980,340 | |
2018 | 622,563 | |
2017 | 186,950 | |
2016 | 14,952 | |
Prior | 13,167 | |
Total loans | 2,277,991 | 2,185,883 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | Pass | ||
Loan portfolio by credit quality indicator | ||
2020 | 426,830 | |
2019 | 951,765 | |
2018 | 622,403 | |
2017 | 186,950 | |
2016 | 14,952 | |
Prior | 13,165 | |
Total loans | 2,216,065 | 2,090,370 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | Special Review | ||
Loan portfolio by credit quality indicator | ||
2020 | 16,106 | |
Total loans | 16,106 | 18,721 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | Watch List - Pass | ||
Loan portfolio by credit quality indicator | ||
2020 | 16,587 | |
2019 | 27,782 | |
2018 | 160 | |
Prior | 1 | |
Total loans | 44,530 | 41,949 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | Watch List - Substandard | ||
Loan portfolio by credit quality indicator | ||
2020 | 376 | |
Total loans | 376 | 33,905 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
2020 | 120 | |
2019 | 793 | |
Prior | 1 | |
Total loans | 914 | |
Real estate - mortgage | ||
Loan portfolio by credit quality indicator | ||
Total loans | 1,081,380 | 1,140,377 |
Real estate - mortgage | Domestic | Residential First Lien | ||
Loan portfolio by credit quality indicator | ||
2020 | 41,957 | |
2019 | 71,159 | |
2018 | 83,698 | |
2017 | 61,827 | |
2016 | 39,404 | |
Prior | 123,493 | |
Total loans | 421,538 | 433,901 |
Real estate - mortgage | Domestic | Residential First Lien | Pass | ||
Loan portfolio by credit quality indicator | ||
2020 | 41,868 | |
2019 | 71,145 | |
2018 | 83,502 | |
2017 | 61,827 | |
2016 | 39,018 | |
Prior | 123,421 | |
Total loans | 420,781 | 426,546 |
Real estate - mortgage | Domestic | Residential First Lien | Special Review | ||
Loan portfolio by credit quality indicator | ||
2016 | 245 | |
Total loans | 245 | 253 |
Real estate - mortgage | Domestic | Residential First Lien | Watch List - Pass | ||
Loan portfolio by credit quality indicator | ||
2019 | 14 | |
2018 | 129 | |
Total loans | 143 | 144 |
Real estate - mortgage | Domestic | Residential First Lien | Watch List - Substandard | ||
Loan portfolio by credit quality indicator | ||
2018 | 67 | |
2016 | 50 | |
Total loans | 117 | 680 |
Real estate - mortgage | Domestic | Residential First Lien | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
2020 | 89 | |
2016 | 91 | |
Prior | 72 | |
Total loans | 252 | |
Real estate - mortgage | Domestic | Residential Junior Lien | ||
Loan portfolio by credit quality indicator | ||
2020 | 111,607 | |
2019 | 139,225 | |
2018 | 85,315 | |
2017 | 106,971 | |
2016 | 82,878 | |
Prior | 133,846 | |
Total loans | 659,842 | 706,476 |
Real estate - mortgage | Domestic | Residential Junior Lien | Pass | ||
Loan portfolio by credit quality indicator | ||
2020 | 111,607 | |
2019 | 139,225 | |
2018 | 85,274 | |
2017 | 106,161 | |
2016 | 82,878 | |
Prior | 133,846 | |
Total loans | 658,991 | 704,958 |
Real estate - mortgage | Domestic | Residential Junior Lien | Special Review | ||
Loan portfolio by credit quality indicator | ||
2017 | 810 | |
Total loans | 810 | 826 |
Real estate - mortgage | Domestic | Residential Junior Lien | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
2018 | 41 | |
Total loans | 41 | |
Consumer | ||
Loan portfolio by credit quality indicator | ||
Total loans | 42,401 | 47,800 |
Consumer | Domestic | ||
Loan portfolio by credit quality indicator | ||
2020 | 19,513 | |
2019 | 18,497 | |
2018 | 2,387 | |
2017 | 404 | |
2016 | 152 | |
Prior | 1,448 | |
Total loans | 42,401 | 47,800 |
Consumer | Domestic | Pass | ||
Loan portfolio by credit quality indicator | ||
2020 | 19,513 | |
2019 | 18,497 | |
2018 | 2,387 | |
2017 | 404 | |
2016 | 152 | |
Prior | 1,445 | |
Total loans | 42,398 | 46,605 |
Consumer | Domestic | Watch List - Doubtful | ||
Loan portfolio by credit quality indicator | ||
Prior | 3 | |
Total loans | 3 | |
Foreign | ||
Loan portfolio by credit quality indicator | ||
Total loans | 132,055 | 141,049 |
Foreign | Foreign | ||
Loan portfolio by credit quality indicator | ||
2020 | 50,234 | |
2019 | 49,072 | |
2018 | 14,545 | |
2017 | 6,972 | |
2016 | 4,155 | |
Prior | 7,077 | |
Total loans | 132,055 | 141,049 |
Foreign | Foreign | Pass | ||
Loan portfolio by credit quality indicator | ||
2020 | 50,234 | |
2019 | 49,072 | |
2018 | 14,545 | |
2017 | 6,972 | |
2016 | 4,155 | |
Prior | 7,077 | |
Total loans | $ 132,055 | $ 140,785 |
Allowance for Credit Losses (_3
Allowance for Credit Losses (Portfolio Credit Quality By Loan Class) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020USD ($)loan | Dec. 31, 2019USD ($) | |
Loan portfolio by credit quality indicator | ||
Portfolio, total | $ 7,501,807 | $ 6,894,946 |
Number of additional relationships reclassified from Pass to Watch List - Substandard | loan | 2 | |
Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 6,538,085 | |
Special Review | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 33,553 | |
Watch List - Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 62,315 | |
Watch List - Substandard | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 248,318 | |
Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 12,675 | |
Commercial, financial and agricultural | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | $ 3,967,980 | 3,379,837 |
Commercial, financial and agricultural | Domestic | Commercial | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,807,491 | 1,292,660 |
Commercial, financial and agricultural | Domestic | Commercial | Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,668,592 | 1,228,110 |
Commercial, financial and agricultural | Domestic | Commercial | Special Review | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 72,066 | 569 |
Commercial, financial and agricultural | Domestic | Commercial | Watch List - Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 64,148 | 39 |
Commercial, financial and agricultural | Domestic | Commercial | Watch List - Substandard | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,089 | 62,007 |
Commercial, financial and agricultural | Domestic | Commercial | Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,935 | |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,971,634 | 1,896,747 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,826,749 | 1,710,446 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | Special Review | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 9,442 | 13,184 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | Watch List - Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 69,260 | 20,183 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | Watch List - Substandard | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 65,647 | 151,726 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: farmland and commercial | Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,208 | |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: multifamily | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 188,855 | 190,430 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: multifamily | Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 188,718 | 190,265 |
Commercial, financial and agricultural | Domestic | Commercial Real Estate: multifamily | Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 165 | |
Real estate - construction | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 2,277,991 | 2,185,883 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 2,277,991 | 2,185,883 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 2,216,065 | 2,090,370 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | Special Review | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 16,106 | 18,721 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | Watch List - Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 44,530 | 41,949 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | Watch List - Substandard | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 376 | 33,905 |
Real estate - construction | Domestic | Commercial Real Estate: other construction and land development | Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 938 | |
Real estate - mortgage | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,081,380 | 1,140,377 |
Real estate - mortgage | Domestic | Residential First Lien | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 421,538 | 433,901 |
Real estate - mortgage | Domestic | Residential First Lien | Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 420,781 | 426,546 |
Real estate - mortgage | Domestic | Residential First Lien | Special Review | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 245 | 253 |
Real estate - mortgage | Domestic | Residential First Lien | Watch List - Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 143 | 144 |
Real estate - mortgage | Domestic | Residential First Lien | Watch List - Substandard | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 117 | 680 |
Real estate - mortgage | Domestic | Residential First Lien | Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 6,278 | |
Real estate - mortgage | Domestic | Residential Junior Lien | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 659,842 | 706,476 |
Real estate - mortgage | Domestic | Residential Junior Lien | Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 658,991 | 704,958 |
Real estate - mortgage | Domestic | Residential Junior Lien | Special Review | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 810 | 826 |
Real estate - mortgage | Domestic | Residential Junior Lien | Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 692 | |
Consumer | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 42,401 | 47,800 |
Consumer | Domestic | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 42,401 | 47,800 |
Consumer | Domestic | Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 42,398 | 46,605 |
Consumer | Domestic | Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 1,195 | |
Foreign | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 132,055 | 141,049 |
Foreign | Foreign | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | 132,055 | 141,049 |
Foreign | Foreign | Pass | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | $ 132,055 | 140,785 |
Foreign | Foreign | Watch - List Impaired | ||
Loan portfolio by credit quality indicator | ||
Portfolio, total | $ 264 |
Stock Options (Details)
Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Apr. 05, 2012 | |
Stock options under 2012 Plan | |||||
Stock option details | |||||
Shares available for future grants | 8,602 | 8,602 | 800,000 | ||
Maximum exercisable period for options granted | 10 years | ||||
Number of options granted (in shares) | 29,500 | ||||
Stock option activity | |||||
Options outstanding at the beginning of the period (in shares) | 658,588 | ||||
Plus: Options granted (in shares) | 29,500 | ||||
Less: | |||||
Options exercised (in shares) | 13,611 | ||||
Options forfeited (in shares) | 9,451 | ||||
Options outstanding at the end of the period (in shares) | 665,026 | 665,026 | |||
Options fully vested and exercisable at the end of the period (in shares) | 411,269 | 411,269 | |||
Stock Options, Weighted average exercise price | |||||
Options outstanding at the beginning, weighted average exercise price (in dollars per share) | $ 27.55 | ||||
Plus: Options granted, weighted average exercise price (in dollars per share) | 17.57 | ||||
Less: | |||||
Options exercised, weighted average exercise price (in dollars per share) | 21.15 | ||||
Options forfeited, weighted average exercise price (in dollars per share) | 30.35 | ||||
Options outstanding at the end, weighted average exercise price (in dollars per share) | $ 27.20 | 27.20 | |||
Options fully vested and exercisable at the end, weighted average exercise price (in dollars per share) | $ 22.86 | $ 22.86 | |||
Stock Options, Weighted average remaining contractual term (years) | |||||
Options outstanding at the end, weighted average remaining contractual term (years) | 5 years 5 months 26 days | ||||
Options fully vested and exercisable at the end, weighted average remaining contractual term (years) | 4 years 21 days | ||||
Stock Options, Aggregate intrinsic value | |||||
Options outstanding at the end, aggregate intrinsic value | $ 4,591 | $ 4,591 | |||
Options fully vested and exercisable at the end, aggregate intrinsic value | 3,968 | 3,968 | |||
Stock-based compensation expense | 176 | $ 239 | 395 | $ 504 | |
Stock-based compensation cost, unrecognized, related to non-vested options | $ 1,576 | $ 1,576 | |||
Stock-based compensation cost, unrecognized, related to non-vested options, weighted-average period of recognition | 1 year 9 months 18 days | ||||
Incentive stock options granted to 10% shareholders | |||||
Stock option details | |||||
Maximum exercisable period for options granted | 5 years |
Investment Securities and Equ_3
Investment Securities and Equity Securities with Readily Determinable Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Held-to-maturity securities | ||
Amortized cost | $ 3,400 | $ 2,400 |
Estimated fair value | 3,400 | 2,400 |
Carrying Value | 3,400 | 2,400 |
Available-for-sale securities | ||
Amortized cost | 3,045,135 | 3,376,070 |
Available for sale debt securities | 3,097,734 | 3,378,923 |
Total Amortized cost | 3,045,135 | 3,376,070 |
Total Gross unrealized gains | 56,229 | 19,467 |
Total Gross unrealized losses | 3,630 | 16,614 |
Assets/liabilities measured at fair value | ||
Available-for-sale securities | ||
Available for sale debt securities and equity securities | 3,097,734 | 3,378,923 |
Carrying Value | ||
Available-for-sale securities | ||
Available for sale debt securities and equity securities | 3,097,734 | 3,378,923 |
Residential mortgage-backed securities | ||
Available-for-sale securities | ||
Amortized cost | 2,973,842 | 3,285,623 |
Gross unrealized gains | 53,188 | 16,534 |
Gross unrealized losses | (3,617) | (16,609) |
Residential mortgage-backed securities | Assets/liabilities measured at fair value | ||
Available-for-sale securities | ||
Available for sale debt securities | 3,023,413 | 3,285,548 |
Residential mortgage-backed securities | Carrying Value | ||
Available-for-sale securities | ||
Available for sale debt securities | 3,023,413 | 3,285,548 |
Mortgage-backed securities by Ginnie Mae | ||
Available-for-sale securities | ||
Available for sale debt securities | 506,404 | 521,247 |
Mortgage-backed securities by Fannie Mae and Freddie Mac | ||
Available-for-sale securities | ||
Available for sale debt securities | 2,517,009 | 2,714,301 |
Obligations of states and political subdivisions | ||
Available-for-sale securities | ||
Amortized cost | 71,293 | 90,447 |
Gross unrealized gains | 3,041 | 2,933 |
Gross unrealized losses | (13) | (5) |
Obligations of states and political subdivisions | Assets/liabilities measured at fair value | ||
Available-for-sale securities | ||
Available for sale debt securities | 74,321 | 93,375 |
Obligations of states and political subdivisions | Carrying Value | ||
Available-for-sale securities | ||
Available for sale debt securities | 74,321 | 93,375 |
Other securities | ||
Held-to-maturity securities | ||
Amortized cost | 3,400 | 2,400 |
Estimated fair value | 3,400 | 2,400 |
Carrying Value | $ 3,400 | $ 2,400 |
Investment Securities and Equ_4
Investment Securities and Equity Securities with Readily Determinable Fair Values (Contractual Maturities and Estimated Fair Values) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Held-to-maturity debt securities amortized cost disclosures | |||||
Due in one year or less, held-to-maturity debt securities amortized cost | $ 1,200 | $ 1,200 | |||
Due after one year through five years, held-to-maturity debt securities amortized cost | 2,200 | 2,200 | |||
Amortized cost, held-to-maturity debt securities | 3,400 | 3,400 | $ 2,400 | ||
Held-to-maturity debt securities, Estimated fair value disclosures | |||||
Due in one year or less, held-to-maturity debt securities, Estimated fair value | 1,200 | 1,200 | |||
Due after one year through five years, held-to-maturity debt securities, Estimated fair value | 2,200 | 2,200 | |||
Estimated fair value | 3,400 | 3,400 | 2,400 | ||
Available-for-sale debt securities amortized cost disclosures | |||||
Due after five years through ten years, available-for-sale debt securities amortized cost | 355 | 355 | |||
Due after ten years, available-for-sale debt securities amortized cost | 70,938 | 70,938 | |||
Residential mortgage-backed securities, amortized cost | 2,973,842 | 2,973,842 | |||
Amortized cost, Available-for-sale securities | 3,045,135 | 3,045,135 | 3,376,070 | ||
Available for sale debt securities, Estimated Fair Value Disclosures | |||||
Due after five years through ten years, available-for-sale debt securities, Estimated Fair Value | 356 | 356 | |||
Due after ten years, available-for-sale debt securities, Estimated Fair Value | 73,965 | 73,965 | |||
Residential mortgage-backed securities, Estimated Fair Value | 3,023,413 | 3,023,413 | |||
Estimated fair value, Available for sale securities | 3,097,734 | 3,097,734 | $ 3,378,923 | ||
Proceeds from sales and calls of available for sale securities | 0 | $ 19,275 | 18,920 | $ 60,695 | |
Proceeds from sales of mortgage-backed securities | 0 | 0 | 0 | 0 | |
Gross gains realized on sales | 0 | 1 | 0 | 3 | |
Gross losses realized on sales | 0 | $ 7 | 5 | $ 13 | |
Collateral Pledged | |||||
Available-for-sale debt securities amortized cost disclosures | |||||
Amortized cost, Available-for-sale securities | 1,151,578 | 1,151,578 | |||
Available for sale debt securities, Estimated Fair Value Disclosures | |||||
Fair value of available for sale investment securities pledged | $ 1,170,646 | $ 1,170,646 |
Investment Securities and Equ_5
Investment Securities and Equity Securities with Readily Determinable Fair Values (Fair Value and Gross Unrealized Loss) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available for sale: | ||
Fair value, less than 12 months | $ 589,056 | $ 523,797 |
Unrealized losses, less than 12 Months | (3,630) | (2,274) |
Fair value, 12 months or more | 1,448,109 | |
Unrealized losses, 12 Months or More | (14,340) | |
Fair value, Total | 589,056 | 1,971,906 |
Unrealized losses, Total | (3,630) | (16,614) |
Residential mortgage-backed securities | ||
Available for sale: | ||
Fair value, less than 12 months | 588,298 | 523,031 |
Unrealized losses, less than 12 Months | (3,617) | (2,269) |
Fair value, 12 months or more | 1,448,109 | |
Unrealized losses, 12 Months or More | (14,340) | |
Fair value, Total | 588,298 | 1,971,140 |
Unrealized losses, Total | (3,617) | (16,609) |
Obligations of states and political subdivisions | ||
Available for sale: | ||
Fair value, less than 12 months | 758 | 766 |
Unrealized losses, less than 12 Months | (13) | (5) |
Fair value, Total | 758 | 766 |
Unrealized losses, Total | $ (13) | $ (5) |
Investment Securities and Equ_6
Investment Securities and Equity Securities with Readily Determinable Fair Values (Unrealized and realized gains and losses recognized in net income on equity securities ) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Investment Securities and Equity Securities with Readily Determinable Fair Values | |||||
Equity Securities | $ 6,194 | $ 6,194 | $ 6,095 | ||
Summary of unrealized and realized gains and losses recognized in net income on equity securities | |||||
Net gains (losses) recognized during the period on equity securities | 69 | $ 52 | 99 | $ 190 | |
Unrealized gain on equity securities with readily determinable fair values | $ 69 | $ 52 | $ 99 | $ 190 |
Other Borrowed Funds (Details)
Other Borrowed Funds (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank advances | ||
Other borrowed funds | $ 436,419 | $ 626,511 |
Percentage of increase in other borrowed funds | (30.30%) |
Junior Subordinated Deferrabl_3
Junior Subordinated Deferrable Interest Debentures (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020USD ($)item | Dec. 31, 2019USD ($) | |
Junior subordinated deferrable interest debentures, major types of business trusts | ||
Number of statutory business trusts issuing trust preferred securities | item | 5 | |
Junior subordinated deferrable interest debentures | $ 134,642 | $ 134,642 |
Maximum number of consecutive quarterly period available for deferral of interest payment on Trusts VI, VIII, IX, X, XI and XII | item | 20 | |
Percentage of capital securities issued by trust qualifying as Tier I capital, maximum | 25.00% | |
Percentage of capital securities issued by trust qualifying as Tier II capital, minimum | 25.00% | |
Capital securities issued by the trust, qualifying as Tier I capital | $ 134,642 | $ 134,642 |
Trust XI | ||
Junior subordinated deferrable interest debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | 25,990 | |
Trust X | ||
Junior subordinated deferrable interest debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 21,021 |
Junior Subordinated Deferrabl_4
Junior Subordinated Deferrable Interest Debentures (Key Information) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Junior subordinated deferrable interest debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 134,642 | $ 134,642 |
Trust VIII | ||
Junior subordinated deferrable interest debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 25,774 | |
Interest rate (as a percent) | 4.27% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 3.05% | |
Trust IX | ||
Junior subordinated deferrable interest debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 41,238 | |
Interest rate (as a percent) | 3.05% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 1.62% | |
Trust X | ||
Junior subordinated deferrable interest debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 21,021 | |
Interest rate (as a percent) | 2.34% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 1.65% | |
Trust XI | ||
Junior subordinated deferrable interest debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 25,990 | |
Interest rate (as a percent) | 3.05% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 1.62% | |
Trust XII | ||
Junior subordinated deferrable interest debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 20,619 | |
Interest rate (as a percent) | 1.80% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 1.45% |
Common Stock and Dividends (Det
Common Stock and Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 03, 2020 | Mar. 12, 2020 | Oct. 15, 2019 | Apr. 15, 2019 | Apr. 30, 2009 | Aug. 04, 2020 |
Common Stock and Dividends | ||||||
Cash dividends paid to common shareholders (in dollars per share) | $ 0.55 | $ 0.55 | $ 0.50 | |||
Repurchase of common stock, authorized amount | $ 50,000 | $ 40,000 | ||||
Period of repurchase of common stock | 12 months | 12 months | ||||
Cumulative number of shares repurchased under all stock repurchase programs | 12,267,402 | |||||
Cumulative cost of shares repurchased under all stock repurchase programs | $ 357,054 |
Capital Ratio (Details)
Capital Ratio (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Capital Ratios | ||
CET 1 ratio | 18.56% | 18.58% |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 20.78% | 20.46% |
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 19.78% | 19.80% |
Tier 1 capital (to Average Assets), Actual Ratio (as a percent) | 15.20% | 16.65% |
Percentage of capital securities issued by trust qualifying as Tier I capital, maximum | 25.00% | |
Percentage of capital securities issued by trust qualifying as Tier II capital, minimum | 25.00% | |
Capital securities issued by the trust, qualifying as Tier I capital | $ 134,642 | $ 134,642 |
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust | $ 134,642 | $ 134,642 |