Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 17, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | BANK OF HAWAII CORP | |
Entity Central Index Key | 46,195 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 42,031,229 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest Income | ||||
Interest and Fees on Loans and Leases | $ 101,311 | $ 90,909 | $ 198,945 | $ 178,846 |
Income on Investment Securities | ||||
Available-for-Sale | 12,380 | 11,835 | 24,521 | 22,919 |
Held-to-Maturity | 20,711 | 19,918 | 42,007 | 39,624 |
Deposits | (4) | 2 | 14 | 7 |
Funds Sold | 846 | 696 | 1,603 | 1,586 |
Other | 341 | 208 | 641 | 438 |
Total Interest Income | 135,585 | 123,568 | 267,731 | 243,420 |
Interest Expense | ||||
Deposits | 9,459 | 4,998 | 17,040 | 8,689 |
Securities Sold Under Agreements to Repurchase | 4,617 | 5,079 | 9,181 | 10,264 |
Funds Purchased | 83 | 39 | 136 | 42 |
Short-Term Borrowings | 13 | 64 | 29 | 64 |
Other Debt | 917 | 1,109 | 1,893 | 2,210 |
Total Interest Expense | 15,089 | 11,289 | 28,279 | 21,269 |
Net Interest Income | 120,496 | 112,279 | 239,452 | 222,151 |
Provision for Credit Losses | 3,500 | 4,250 | 7,625 | 8,650 |
Net Interest Income After Provision for Credit Losses | 116,996 | 108,029 | 231,827 | 213,501 |
Noninterest Income | ||||
Trust and Asset Management | 11,356 | 11,796 | 22,537 | 23,275 |
Mortgage Banking | 2,179 | 3,819 | 4,324 | 7,119 |
Service Charges on Deposit Accounts | 6,865 | 8,009 | 13,994 | 16,334 |
Fees, Exchange, and Other Service Charges | 14,400 | 13,965 | 28,733 | 27,297 |
Investment Securities Gains (Losses), Net | (1,702) | (520) | (2,368) | 11,613 |
Annuity and Insurance | 1,847 | 2,161 | 3,053 | 4,156 |
Bank-Owned Life Insurance | 1,796 | 1,550 | 3,638 | 3,047 |
Other | 4,557 | 4,456 | 11,422 | 8,311 |
Total Noninterest Income | 41,298 | 45,236 | 85,333 | 101,152 |
Noninterest Expense | ||||
Salaries and Benefits | 52,148 | 49,676 | 106,570 | 100,841 |
Net Occupancy | 8,588 | 8,131 | 17,122 | 16,299 |
Net Equipment | 5,845 | 5,706 | 11,372 | 11,207 |
Data Processing | 4,563 | 3,881 | 8,454 | 7,291 |
Professional Fees | 2,546 | 2,592 | 5,319 | 5,371 |
FDIC Insurance | 2,182 | 2,097 | 4,339 | 4,306 |
Other | 14,919 | 16,106 | 31,999 | 31,442 |
Total Noninterest Expense | 90,791 | 88,189 | 185,175 | 176,757 |
Income Before Provision for Income Taxes | 67,503 | 65,076 | 131,985 | 137,896 |
Provision for Income Taxes | 12,785 | 20,414 | 23,227 | 42,058 |
Net Income | $ 54,718 | $ 44,662 | $ 108,758 | $ 95,838 |
Basic Earnings Per Share (in dollars per share) | $ 1.31 | $ 1.05 | $ 2.59 | $ 2.26 |
Diluted Earnings Per Share (in dollars per share) | 1.30 | 1.05 | 2.57 | 2.24 |
Dividends Declared Per Share (in dollars per share) | $ 0.6 | $ 0.5 | $ 1.12 | $ 1 |
Basic Weighted Average Shares (in shares) | 41,884,221 | 42,353,976 | 41,960,743 | 42,379,730 |
Diluted Weighted Average Shares (in shares) | 42,152,200 | 42,658,885 | 42,252,900 | 42,704,010 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 54,718 | $ 44,662 | $ 108,758 | $ 95,838 |
Other Comprehensive Income (Loss), Net of Tax: | ||||
Net Unrealized Gains (Losses) on Investment Securities | (2,974) | 3,106 | (12,095) | 8,000 |
Defined Benefit Plans | 216 | 147 | 432 | 293 |
Total Other Comprehensive Income (Loss) | (2,758) | 3,253 | (11,663) | 8,293 |
Comprehensive Income | $ 51,960 | $ 47,915 | $ 97,095 | $ 104,131 |
Consolidated Statements of Cond
Consolidated Statements of Condition (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Interest-Bearing Deposits in Other Banks | $ 3,524 | $ 3,421 |
Funds Sold | 361,933 | 181,413 |
Investment Securities | ||
Available-for-Sale | 2,092,870 | 2,232,979 |
Held-to-Maturity (Fair Value of $3,500,497 and $3,894,121) | 3,595,891 | 3,928,170 |
Loans Held for Sale | 16,025 | 19,231 |
Loans and Leases | 10,053,323 | 9,796,947 |
Allowance for Loan and Lease Losses | (108,188) | (107,346) |
Net Loans and Leases | 9,945,135 | 9,689,601 |
Total Earning Assets | 16,015,378 | 16,054,815 |
Cash and Due From Banks | 312,303 | 263,017 |
Premises and Equipment, Net | 142,791 | 130,926 |
Accrued Interest Receivable | 50,594 | 50,485 |
Foreclosed Real Estate | 2,926 | 1,040 |
Mortgage Servicing Rights | 24,583 | 24,622 |
Goodwill | 31,517 | 31,517 |
Bank-Owned Life Insurance | 281,018 | 280,034 |
Other Assets | 263,052 | 252,596 |
Total Assets | 17,124,162 | 17,089,052 |
Deposits | ||
Noninterest-Bearing Demand | 4,729,203 | 4,724,300 |
Interest-Bearing Demand | 3,111,069 | 3,082,563 |
Savings | 5,389,763 | 5,389,013 |
Time | 1,713,323 | 1,688,092 |
Total Deposits | 14,943,358 | 14,883,968 |
Short-Term Borrowings | 330 | 0 |
Securities Sold Under Agreements to Repurchase | 504,193 | 505,293 |
Other Debt | 235,681 | 260,716 |
Retirement Benefits Payable | 36,730 | 37,312 |
Accrued Interest Payable | 7,395 | 6,946 |
Taxes Payable and Deferred Taxes | 15,136 | 24,009 |
Other Liabilities | 133,622 | 138,940 |
Total Liabilities | 15,876,445 | 15,857,184 |
Shareholders’ Equity | ||
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2018 - 58,070,285 / 42,084,066 and December 31, 2017 - 57,959,074 / 42,401,443) | 577 | 576 |
Capital Surplus | 566,436 | 561,161 |
Accumulated Other Comprehensive Loss | (53,855) | (34,715) |
Retained Earnings | 1,581,168 | 1,512,218 |
Treasury Stock, at Cost (Shares: June 30, 2018 - 15,986,219 and December 31, 2017 - 15,557,631) | (846,609) | (807,372) |
Total Shareholders’ Equity | 1,247,717 | 1,231,868 |
Total Liabilities and Shareholders’ Equity | $ 17,124,162 | $ 17,089,052 |
Consolidated Statements of Con5
Consolidated Statements of Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Held-to-Maturity: Fair Value | $ 3,500,497 | $ 3,894,121 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, authorized shares | 500,000,000 | 500,000,000 |
Common Stock, issued shares | 58,070,285 | 57,959,074 |
Common Stock, outstanding shares | 42,084,066 | 42,401,443 |
Treasury Stock, Shares | 15,986,219 | 15,557,631 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Capital Surplus | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock |
Balance at Beginning of Period at Dec. 31, 2016 | $ 1,161,537 | $ 576 | $ 551,628 | $ (33,906) | $ 1,415,440 | $ (772,201) |
Beginning Balance (in shares) at Dec. 31, 2016 | 42,635,978 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | 95,838 | 95,838 | ||||
Other Comprehensive Loss | 8,293 | 8,293 | ||||
Share-Based Compensation | 3,726 | 3,726 | ||||
Common Stock Issued under Purchase and Equity Compensation Plans | 8,438 | $ 0 | 1,055 | (162) | 7,545 | |
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (in shares) | 275,605 | |||||
Common Stock Repurchased | (21,287) | (21,287) | ||||
Common Stock Repurchased (in shares) | (255,629) | |||||
Cash Dividends Declared (per share) | (42,788) | (42,788) | ||||
Balance at End of Period at Jun. 30, 2017 | 1,213,757 | $ 576 | 556,409 | (25,613) | 1,468,328 | (785,943) |
Ending Balance (in shares) at Jun. 30, 2017 | 42,655,954 | |||||
Balance at Beginning of Period at Mar. 31, 2017 | (28,866) | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | 44,662 | |||||
Other Comprehensive Loss | 3,253 | 3,253 | ||||
Balance at End of Period at Jun. 30, 2017 | 1,213,757 | $ 576 | 556,409 | (25,613) | 1,468,328 | (785,943) |
Ending Balance (in shares) at Jun. 30, 2017 | 42,655,954 | |||||
Balance at Beginning of Period at Dec. 31, 2017 | $ 1,231,868 | $ 576 | 561,161 | (34,715) | 1,512,218 | (807,372) |
Beginning Balance (in shares) at Dec. 31, 2017 | 42,401,443 | 42,401,443 | ||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | $ 108,758 | 108,758 | ||||
Other Comprehensive Loss | (11,663) | (11,663) | ||||
Reclassification of the Income Tax Effect of the Tax Reform from AOCI to RE | 0 | (7,477) | 7,477 | |||
Share-Based Compensation | 4,055 | 4,055 | ||||
Common Stock Issued under Purchase and Equity Compensation Plans | 4,379 | $ 1 | 1,220 | 166 | 2,992 | |
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (in shares) | 179,644 | |||||
Common Stock Repurchased | (42,229) | (42,229) | ||||
Common Stock Repurchased (in shares) | (497,021) | |||||
Cash Dividends Declared (per share) | (47,451) | (47,451) | ||||
Balance at End of Period at Jun. 30, 2018 | $ 1,247,717 | $ 577 | 566,436 | (53,855) | 1,581,168 | (846,609) |
Ending Balance (in shares) at Jun. 30, 2018 | 42,084,066 | 42,084,066 | ||||
Balance at Beginning of Period at Mar. 31, 2018 | (51,097) | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | $ 54,718 | |||||
Other Comprehensive Loss | (2,758) | (2,758) | ||||
Balance at End of Period at Jun. 30, 2018 | $ 1,247,717 | $ 577 | $ 566,436 | $ (53,855) | $ 1,581,168 | $ (846,609) |
Ending Balance (in shares) at Jun. 30, 2018 | 42,084,066 | 42,084,066 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends Declared Per Share (in dollars per share) | $ 0.6 | $ 0.5 | $ 1.12 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities | ||
Net Income | $ 108,758 | $ 95,838 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Provision for Credit Losses | 7,625 | 8,650 |
Depreciation and Amortization | 6,788 | 6,565 |
Amortization of Deferred Loan and Lease Fees | (292) | (535) |
Amortization and Accretion of Premiums/Discounts on Investment Securities, Net | 17,632 | 20,027 |
Share-Based Compensation | 4,055 | 3,726 |
Benefit Plan Contributions | (798) | (741) |
Deferred Income Taxes | (2,496) | 3,635 |
Net Gains on Sales of Loans and Leases | (1,070) | (3,971) |
Net Losses (Gains) on Sales of Investment Securities | 2,368 | (11,613) |
Proceeds from Sales of Loans Held for Sale | 152,004 | 146,478 |
Originations of Loans Held for Sale | (148,513) | (150,414) |
Net Tax Benefit from Share-Based Compensation | 949 | 2,077 |
Net Change in Other Assets and Other Liabilities | (18,529) | (21,803) |
Net Cash Provided by Operating Activities | 128,481 | 97,919 |
Investment Securities Available-for-Sale: | ||
Proceeds from Sales, Prepayments and Maturities | 209,572 | 203,177 |
Purchases | (99,254) | (320,170) |
Investment Securities Held-to-Maturity: | ||
Proceeds from Prepayments and Maturities | 425,043 | 406,904 |
Purchases | (99,415) | (365,498) |
Net Change in Loans and Leases | (264,304) | (508,529) |
Proceeds from Sales of Loans | 0 | 112,357 |
Premises and Equipment, Net | (18,652) | (12,629) |
Net Cash Provided by (Used in) Investing Activities | 152,990 | (484,388) |
Financing Activities | ||
Net Change in Deposits | 59,390 | 464,409 |
Net Change in Short-Term Borrowings | (770) | (27,702) |
Repayments of Long-Term Debt | (25,000) | 0 |
Proceeds from Issuance of Common Stock | 4,498 | 8,457 |
Repurchase of Common Stock | (42,229) | (21,287) |
Cash Dividends Paid | (47,451) | (42,788) |
Net Cash Provided by (Used in) Financing Activities | (51,562) | 381,089 |
Net Change in Cash and Cash Equivalents | 229,909 | (5,380) |
Cash and Cash Equivalents at End of Period | 677,760 | 874,227 |
Cash and Cash Equivalents at Beginning of Period | 447,851 | 879,607 |
Supplemental Information | ||
Cash Paid for Interest | 27,830 | 21,498 |
Cash Paid for Income Taxes | 24,487 | 32,058 |
Non-Cash Investing Activities: | ||
Transfer from Loans to Foreclosed Real Estate | 2,307 | 2,207 |
Transfers from Loans to Loans Held for Sale | $ 0 | $ 62,727 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation Bank of Hawaii Corporation (the “Parent”) is a Delaware corporation and a bank holding company headquartered in Honolulu, Hawaii. Bank of Hawaii Corporation and its subsidiaries (collectively, the “Company”) provide a broad range of financial products and services to customers in Hawaii, Guam, and other Pacific Islands. The accompanying consolidated financial statements include the accounts of the Parent and its subsidiaries. The Parent’s principal operating subsidiary is Bank of Hawaii (the “Bank”). The consolidated financial statements in this report have not been audited by an independent registered public accounting firm, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the results for the interim periods. All such adjustments are of a normal recurring nature. Intercompany accounts and transactions have been eliminated in consolidation. Certain prior period information has been reclassified to conform to the current period presentation. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for the full fiscal year or for any future period. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and accompanying notes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements. Variable Interest Entities Variable interests are defined as contractual ownership or other interests in an entity that change with fluctuations in an entity’s net asset value. The primary beneficiary consolidates the variable interest entity (“VIE”). The primary beneficiary is defined as the enterprise that has both the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. The Company has limited partnership interests in several low-income housing partnerships. These partnerships provide funds for the construction and operation of apartment complexes that provide affordable housing to lower-income households. If these developments successfully attract a specified percentage of residents falling in that lower-income range, state and/or federal income tax credits are made available to the partners. The tax credits are generally recognized over 10 years. In order to continue receiving the tax credits each year over the life of the partnership, the low-income residency targets must be maintained. Prior to January 1, 2015, the Company utilized the effective yield method whereby the Company recognized tax credits generally over 10 years and amortized the initial cost of the investment to provide a constant effective yield over the period that tax credits are allocated to the Company. On January 1, 2015, the Company adopted ASU No. 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects” prospectively for new investments. ASU No. 2014-01 permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. As permitted by ASU No. 2014-01, the Company elected to continue to utilize the effective yield method for investments made prior to January 1, 2015. Unfunded commitments to fund these low-income housing partnerships were $13.8 million and $17.5 million as of June 30, 2018 and December 31, 2017 , respectively. These unfunded commitments are unconditional and legally binding and are recorded in other liabilities in the consolidated statements of condition. See Note 6 Affordable Housing Projects Tax Credit Partnerships for more information. The Company also has limited partnership interests in solar energy tax credit partnership investments. These partnerships develop, build, own and operate solar renewable energy projects. Over the course of these investments, the Company expects to receive federal and state tax credits, tax-related benefits, and excess cash available for distribution, if any. The Company may be called to sell its interest in the limited partnerships through a call option once all investment tax credits have been recognized. Tax benefits associated with these investments are generally recognized over six years. These entities meet the definition of a VIE; however, the Company is not the primary beneficiary of the entities as the general partner has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. While the partnership agreements allow the limited partners, through a majority vote, to remove the general partner, this right is not deemed to be substantive as the general partner can only be removed for cause. The investments in these entities are initially recorded at cost, which approximates the maximum exposure to loss as a result of the Company’s involvement with these unconsolidated entities. The balance of the Company’s investments in these entities was $82.9 million and $87.6 million as of June 30, 2018 and December 31, 2017 , respectively, and is included in other assets in the consolidated statements of condition. Tax Cuts and Jobs Act Public law No. 115-97, known as the Tax Cuts and Jobs Act (the "Tax Act"), enacted on December 22, 2017, reduced the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018. Also on December 22, 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for tax effects of the Tax Act. SAB 118 provides a measurement period of up to one year from the enactment date to complete the accounting. Any adjustments during this measurement period will be included in net earnings from continuing operations as an adjustment to income tax expense in the reporting period when such adjustments are determined. Based on the information available and current interpretation of the rules, the Company estimated the impact of the reduction in the corporate tax rate and remeasurement of certain deferred tax assets and liabilities. The provisional amount recorded in the fourth quarter of 2017 related to the remeasurement of the Company's deferred tax balance resulted in additional income tax expense of $3.6 million . An additional $0.1 million was expensed in the first quarter of 2018 due to the remeasurement of the Company’s deferred tax balance. In addition, during the first quarter of 2018, the Company recorded a $2.0 million basis adjustment on its low income housing partnership investments, which consequently reduced income tax expense by the same amount. The final impact of the Tax Act may differ from these estimates as a result of changes in management’s interpretations and assumptions, as well as new guidance that may be issued by the Internal Revenue Service. Accounting Standards Adopted in 2018 In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies generally will be required to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. Subsequent to the issuance of ASU 2014-09, the FASB issued targeted updates to clarify specific implementation issues including ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU No. 2016-10, “Identifying Performance Obligations and Licensing,” ASU No. 2016-12, “Narrow-Scope Improvements and Practical Expedients,” and ASU No. 2016-20 “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers.” For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. Since the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, the new guidance did not have a material impact on revenue most closely associated with financial instruments, including interest income and expense. The Company completed its overall assessment of revenue streams and review of related contracts potentially affected by the ASU, including trust and asset management fees, deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. Based on this assessment, the Company concluded that ASU 2014-09 did not materially change the method in which the Company currently recognizes revenue for these revenue streams. The Company also completed its evaluation of certain costs related to these revenue streams to determine whether such costs should be presented as expenses or contra-revenue (i.e., gross vs. net). Based on its evaluation, the Company determined that the classification of certain debit and credit card related costs should change (i.e., costs previously recorded as expense is now recorded as contra-revenue, and vice versa). These classification changes resulted in immaterial changes to both revenue and expense. The Company also determined that certain costs related to ATMs should be recorded as an expense rather than a reduction of revenue. This change did not have a material effect to noninterest income or expense. The Company adopted ASU 2014-09 and its related amendments on its required effective date of January 1, 2018 utilizing the modified retrospective approach. Since there was no net income impact upon adoption of the new guidance, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Consistent with the modified retrospective approach, the Company did not adjust prior period amounts for the debit and credit card costs and the ATM costs reclassifications noted above. See Note 15 Revenue Recognition for more information. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments by making targeted improvements to GAAP as follows: (1) require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; (2) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; (3) eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (4) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (5) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (6) require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (7) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (8) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The Company’s adoption of ASU No. 2016-01 on January 1, 2018 did not have a material impact on the Company’s Consolidated Financial Statements. In accordance with (5) above, the Company measured the fair value of its loan portfolio as of June 30, 2018 using an exit price notion (see Note 14 Fair Value of Assets and Liabilities ). In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments.” At the time, GAAP was unclear or did not include specific guidance on how to classify certain transactions in the statement of cash flows. This ASU is intended to reduce diversity in practice in how eight particular transactions are classified in the statement of cash flows. ASU No. 2016-15 was effective for interim and annual reporting periods beginning after December 15, 2017. Entities were required to apply the guidance retrospectively. If it is impracticable to apply the guidance retrospectively for an issue, the amendments related to that issue would be applied prospectively. The Company adopted ASU No. 2016-15 on January 1, 2018. ASU No. 2016-15 did not have a material impact on the Company’s Consolidated Financial Statements. In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” Under the new guidance, employers are required to present the service cost component of the net periodic benefit cost in the same income statement line item (e.g., Salaries and Benefits) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Employers will present the other components of net periodic benefit cost separately (e.g., Other Noninterest Expense) from the line item that includes the service cost. ASU No. 2017-07 became effective for interim and annual reporting periods beginning after December 15, 2017. Employers will apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component will be applied prospectively. The Company adopted ASU No. 2017-07 on January 1, 2018 and utilized the ASU’s practical expedient allowing entities to estimate amounts for comparative periods using the information previously disclosed in their pension and other postretirement benefit plan footnote. ASU No. 2017-07 did not have a material impact on the Company’s Consolidated Financial Statements. In February 2018, the FASB issued ASU No. 2018-02, “ Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU allows a reclassification from accumulated other comprehensive income (“AOCI”) to retained earnings for certain income tax effects stranded in AOCI as a result of the Tax Act. Consequently, the reclassification eliminates the stranded tax effects resulting from the Tax Act and is intended to improve the usefulness of information reported to financial statement users. However, because the ASU only relates to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires the effect of a change in tax laws or rates to be included in income from continuing operations is not affected. ASU No. 2018-02 is effective for the Company's reporting period beginning on January 1, 2019; early adoption is permitted. The Company elected to early adopt ASU No. 2018-02 during the first quarter of 2018, and elected to reclassify the income tax effects of the Tax Act from AOCI to retained earnings. The reclassification decreased AOCI and increased retained earnings by $7.5 million , with zero net effect on total shareholders’ equity. The Company utilizes the individual securities approach when releasing income tax effects from AOCI for its investment securities. Accounting Standards Pending Adoption In February 2016, the FASB issued ASU No. 2016-02, “Leases.” Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases): 1) a lease liability, which is the present value of a lessee’s obligation to make lease payments, and 2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. Leveraged leases have been eliminated, although lessors can continue to account for existing leveraged leases using the current accounting guidance. Other limited changes were made to align lessor accounting with the lessee accounting model and the new revenue recognition standard . All entities will classify leases to determine how to recognize lease-related revenue and expense. Quantitative and qualitative disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The intention is to require enough information to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities. ASU No. 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. All entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. They have the option to use certain relief; full retrospective application is prohibited. The Company has several lease agreements, such as branch locations, which are currently considered operating leases, and therefore, not recognized on the Company’s consolidated statements of condition. The Company expects the new guidance will require these lease agreements to be recognized on the consolidated statements of condition as a right-of-use asset and a corresponding lease liability. Therefore, the Company’s preliminary evaluation indicates the provisions of ASU No. 2016-02 are expected to impact the Company’s consolidated statements of condition, along with the Company’s regulatory capital ratios. However, the Company continues to evaluate the extent of potential impact the new guidance will have on the Company’s Consolidated Financial Statements. The Company is nearing completion of identifying a complete inventory of arrangements containing a lease and accumulating the lease data necessary to apply the amended guidance. In addition, the Company purchased new software to aid in the transition to the new leasing guidance, and the majority of the Company’s leases have been entered into this new leasing software program. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. In issuing the standard, the FASB is responding to criticism that today’s guidance delays recognition of credit losses. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the credit losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company is continuing its implementation efforts through its Company-wide implementation team. This team has assigned roles and responsibilities, key tasks to complete, and a general timeline to be followed. The team meets periodically to discuss the latest developments and ensure progress is being made. The team also keeps current on evolving interpretations and industry practices related to ASU 2016-13 via webcasts, publications, conferences, and peer bank meetings. The team is currently working with an advisory consultant in reviewing and validating the possible methodologies the Company can consider for CECL before determining the specific methodologies that will be utilized. The Company’s preliminary evaluation indicates the provisions of ASU No. 2016-13 are expected to impact the Company’s Consolidated Financial Statements, in particular the level of the reserve for credit losses. The Company is continuing to evaluate the extent of the potential impact. In August 2017, the FASB issued ASU No. 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” This ASU’s objectives are to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities; and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. ASU No. 2017-12 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The Company currently does not designate any derivative financial instruments as formal hedging relationships, and therefore, does not utilize hedge accounting. However, the Company is currently evaluating this ASU to determine whether its provisions will enhance the Company’s ability to employ risk management strategies, while improving the transparency and understanding of those strategies for financial statement users. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents The following table provides a reconciliation of cash and cash equivalents reported within the consolidated statements of condition that sum to the total of the same such amounts shown in the consolidated statements of cash flows: (dollars in thousands) June 30, December 31, Interest-Bearing Deposits in Other Banks $ 3,524 $ 3,421 Funds Sold 361,933 181,413 Cash and Due From Banks 312,303 263,017 Total Cash and Cash Equivalents $ 677,760 $ 447,851 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities as of June 30, 2018 and December 31, 2017 were as follows: (dollars in thousands) Amortized Cost Gross Gross Fair Value June 30, 2018 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 446,766 $ 578 $ (2,632 ) $ 444,712 Debt Securities Issued by States and Political Subdivisions 587,160 6,655 (1,214 ) 592,601 Debt Securities Issued by Corporations 224,997 79 (1,299 ) 223,777 Mortgage-Backed Securities: Residential - Government Agencies 209,624 2,180 (1,108 ) 210,696 Residential - U.S. Government-Sponsored Enterprises 579,602 383 (20,117 ) 559,868 Commercial - Government Agencies 65,565 — (4,349 ) 61,216 Total Mortgage-Backed Securities 854,791 2,563 (25,574 ) 831,780 Total $ 2,113,714 $ 9,875 $ (30,719 ) $ 2,092,870 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 364,604 $ 1 $ (1,824 ) $ 362,781 Debt Securities Issued by States and Political Subdivisions 236,567 7,400 — 243,967 Debt Securities Issued by Corporations 104,955 — (2,977 ) 101,978 Mortgage-Backed Securities: Residential - Government Agencies 2,003,782 4,976 (70,085 ) 1,938,673 Residential - U.S. Government-Sponsored Enterprises 701,326 273 (26,872 ) 674,727 Commercial - Government Agencies 184,657 45 (6,331 ) 178,371 Total Mortgage-Backed Securities 2,889,765 5,294 (103,288 ) 2,791,771 Total $ 3,595,891 $ 12,695 $ (108,089 ) $ 3,500,497 December 31, 2017 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 424,912 $ 2,053 $ (1,035 ) $ 425,930 Debt Securities Issued by States and Political Subdivisions 618,167 9,894 (1,042 ) 627,019 Debt Securities Issued by Corporations 268,003 199 (2,091 ) 266,111 Mortgage-Backed Securities: Residential - Government Agencies 233,268 3,129 (1,037 ) 235,360 Residential - U.S. Government-Sponsored Enterprises 619,795 420 (10,403 ) 609,812 Commercial - Government Agencies 71,999 — (3,252 ) 68,747 Total Mortgage-Backed Securities 925,062 3,549 (14,692 ) 913,919 Total $ 2,236,144 $ 15,695 $ (18,860 ) $ 2,232,979 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 375,074 $ 18 $ (1,451 ) $ 373,641 Debt Securities Issued by States and Political Subdivisions 238,504 9,125 — 247,629 Debt Securities Issued by Corporations 119,635 123 (1,591 ) 118,167 Mortgage-Backed Securities: Residential - Government Agencies 2,229,985 9,975 (37,047 ) 2,202,913 Residential - U.S. Government-Sponsored Enterprises 763,312 911 (11,255 ) 752,968 Commercial - Government Agencies 201,660 797 (3,654 ) 198,803 Total Mortgage-Backed Securities 3,194,957 11,683 (51,956 ) 3,154,684 Total $ 3,928,170 $ 20,949 $ (54,998 ) $ 3,894,121 The table below presents an analysis of the contractual maturities of the Company’s investment securities as of June 30, 2018 . Debt securities issued by government agencies (Small Business Administration securities) and mortgage-backed securities are disclosed separately in the table below as these investment securities may prepay prior to their scheduled contractual maturity dates. (dollars in thousands) Amortized Cost Fair Value Available-for-Sale: Due in One Year or Less $ 46,250 $ 46,201 Due After One Year Through Five Years 628,271 628,659 Due After Five Years Through Ten Years 115,193 118,197 Due After Ten Years 22,994 23,856 812,708 816,913 Debt Securities Issued by Government Agencies 446,215 444,177 Mortgage-Backed Securities: Residential - Government Agencies 209,624 210,696 Residential - U.S. Government-Sponsored Enterprises 579,602 559,868 Commercial - Government Agencies 65,565 61,216 Total Mortgage-Backed Securities 854,791 831,780 Total $ 2,113,714 $ 2,092,870 Held-to-Maturity: Due in One Year or Less $ 244,843 $ 244,173 Due After One Year Through Five Years 209,721 210,339 Due After Five Years Through Ten Years 234,444 236,128 Due After Ten Years 17,118 18,086 706,126 708,726 Mortgage-Backed Securities: Residential - Government Agencies 2,003,782 1,938,673 Residential - U.S. Government-Sponsored Enterprises 701,326 674,727 Commercial - Government Agencies 184,657 178,371 Total Mortgage-Backed Securities 2,889,765 2,791,771 Total $ 3,595,891 $ 3,500,497 Investment securities with carrying values of $2.3 billion and $2.4 billion as of June 30, 2018 and December 31, 2017 , respectively, were pledged to secure deposits of governmental entities and securities sold under agreements to repurchase. The table below presents the gains and losses from the sales of investment securities for the three and six months ended June 30, 2018 and 2017 . Three Months Ended Six Months Ended (dollars in thousands) 2018 2017 2018 2017 Gross Gains on Sales of Investment Securities $ — $ — $ — $ 12,467 Gross Losses on Sales of Investment Securities (1,702 ) (520 ) (2,368 ) (854 ) Net Gains (Losses) on Sales of Investment Securities $ (1,702 ) $ (520 ) $ (2,368 ) $ 11,613 The losses during the three and six months ended June 30, 2018 were due to fees paid to the counterparties of the Company’s prior Visa Class B share sale transactions combined with a $1.0 million liability related to a change in the Visa Class B conversion ratio. The losses during the three and six months ended June 30, 2017 were due to fees paid to the counterparties of the Company’s prior Visa Class B share sale transactions. The Company’s gross unrealized losses and the related fair value of investment securities, aggregated by investment category and length of time in a continuous unrealized loss position, were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2018 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 230,073 $ (1,367 ) $ 142,480 $ (1,265 ) $ 372,553 $ (2,632 ) Debt Securities Issued by States and Political Subdivisions 199,140 (1,207 ) 677 (7 ) 199,817 (1,214 ) Debt Securities Issued by Corporations 24,725 (275 ) 163,972 (1,024 ) 188,697 (1,299 ) Mortgage-Backed Securities: Residential - Government Agencies 8,510 (71 ) 18,042 (1,037 ) 26,552 (1,108 ) Residential - U.S. Government-Sponsored Enterprises 344,981 (10,255 ) 191,811 (9,862 ) 536,792 (20,117 ) Commercial - Government Agencies — — 61,216 (4,349 ) 61,216 (4,349 ) Total Mortgage-Backed Securities 353,491 (10,326 ) 271,069 (15,248 ) 624,560 (25,574 ) Total $ 807,429 $ (13,175 ) $ 578,198 $ (17,544 ) $ 1,385,627 $ (30,719 ) Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 273,578 $ (826 ) $ 69,214 $ (998 ) $ 342,792 $ (1,824 ) Debt Securities Issued by Corporations 54,449 (1,000 ) 47,529 (1,977 ) 101,978 (2,977 ) Mortgage-Backed Securities: Residential - Government Agencies 988,147 (31,731 ) 684,927 (38,354 ) 1,673,074 (70,085 ) Residential - U.S. Government-Sponsored Enterprises 364,248 (11,698 ) 304,212 (15,174 ) 668,460 (26,872 ) Commercial - Government Agencies 95,460 (1,154 ) 76,595 (5,177 ) 172,055 (6,331 ) Total Mortgage-Backed Securities 1,447,855 (44,583 ) 1,065,734 (58,705 ) 2,513,589 (103,288 ) Total $ 1,775,882 $ (46,409 ) $ 1,182,477 $ (61,680 ) $ 2,958,359 $ (108,089 ) December 31, 2017 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 103,842 $ (599 ) $ 132,071 $ (436 ) $ 235,913 $ (1,035 ) Debt Securities Issued by States and Political Subdivisions 172,343 (1,032 ) 734 (10 ) 173,077 (1,042 ) Debt Securities Issued by Corporations 12,985 (15 ) 192,927 (2,076 ) 205,912 (2,091 ) Mortgage-Backed Securities: Residential - Government Agencies 11,035 (4 ) 10,618 (1,033 ) 21,653 (1,037 ) Residential - U.S. Government-Sponsored Enterprises 429,342 (5,720 ) 150,887 (4,683 ) 580,229 (10,403 ) Commercial - Government Agencies — — 68,747 (3,252 ) 68,747 (3,252 ) Total Mortgage-Backed Securities 440,377 (5,724 ) 230,252 (8,968 ) 670,629 (14,692 ) Total $ 729,547 $ (7,370 ) $ 555,984 $ (11,490 ) $ 1,285,531 $ (18,860 ) Held-to-Maturity: Debt Securities Issued by the U.S. Treasury $ 254,283 $ (532 ) $ 89,391 $ (919 ) $ 343,674 $ (1,451 ) Debt Securities Issued by Corporations 25,490 (110 ) 58,869 (1,481 ) 84,359 (1,591 ) Mortgage-Backed Securities: Residential - Government Agencies 1,030,472 (12,262 ) 704,545 (24,785 ) 1,735,017 (37,047 ) Residential - U.S. Government-Sponsored Enterprises 293,530 (3,106 ) 339,232 (8,149 ) 632,762 (11,255 ) Commercial - Government Agencies 497 (5 ) 82,288 (3,649 ) 82,785 (3,654 ) Total Mortgage-Backed Securities 1,324,499 (15,373 ) 1,126,065 (36,583 ) 2,450,564 (51,956 ) Total $ 1,604,272 $ (16,015 ) $ 1,274,325 $ (38,983 ) $ 2,878,597 $ (54,998 ) The Company does not believe that the investment securities that were in an unrealized loss position as of June 30, 2018 , which were comprised of 468 securities, represent an other-than-temporary impairment. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. As of June 30, 2018 and December 31, 2017 , the gross unrealized losses reported for mortgage-backed securities were mostly related to investment securities issued by the Government National Mortgage Association. The Company does not intend to sell the investment securities that were in an unrealized loss position and it is not more likely than not that the Company will be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity. Interest income from taxable and non-taxable investment securities for the three and six months ended June 30, 2018 and 2017 were as follows: Three Months Ended Six Months Ended (dollars in thousands) 2018 2017 2018 2017 Taxable $ 28,405 $ 26,741 $ 57,076 $ 52,508 Non-Taxable 4,686 5,012 9,452 10,035 Total Interest Income from Investment Securities $ 33,091 $ 31,753 $ 66,528 $ 62,543 As of June 30, 2018 , included in the Company’s investment securities portfolio were debt securities issued by political subdivisions within the State of Hawaii of $478.1 million , representing 57% of the total fair value of the Company’s municipal debt securities. Of the entire Hawaii municipal bond portfolio, 94% were credit-rated Aa2 or better by Moody’s while the remaining Hawaii municipal bonds were credit-rated A1 or better by at least one nationally recognized statistical rating organization. Of the Company’s total Hawaii municipal bond holdings, 78% were general obligation issuances. As of June 30, 2018 , there were no other holdings of municipal debt securities that were issued by a single state or political subdivision which comprised more than 10% of the total fair value of the Company’s municipal debt securities. As of June 30, 2018 and December 31, 2017 , the carrying value of the Company’s Federal Home Loan Bank of Des Moines stock and Federal Reserve Bank stock was as follows: (dollars in thousands) June 30, December 31, Federal Home Loan Bank Stock $ 19,000 $ 20,000 Federal Reserve Bank Stock 20,796 20,645 Total $ 39,796 $ 40,645 These securities can only be redeemed or sold at their par value and only to the respective issuing government-supported institution or to another member institution. The Company records these non-marketable equity securities as a component of other assets and periodically evaluates these securities for impairment. Management considers these non-marketable equity securities to be long-term investments. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. Visa Class B Restricted Shares In 2008, the Company received Visa Class B restricted shares as part of Visa’s initial public offering. These shares are transferable only under limited circumstances until they can be converted into the publicly traded Class A common shares. This conversion will not occur until the settlement of certain litigation which is indemnified by Visa members, including the Company. Visa funded an escrow account from its initial public offering to settle these litigation claims. Should this escrow account be insufficient to cover these litigation claims, Visa is entitled to fund additional amounts to the escrow account by reducing each member bank’s Class B conversion ratio to unrestricted Class A shares. As of June 30, 2018 , the conversion ratio was 1.6298 . See Note 12 Derivative Financial Instruments for more information. The Company occasionally sells these Visa Class B shares to other financial institutions. Concurrent with every sale the Company enters into an agreement with the buyer that requires payment to the buyer in the event Visa further reduces the conversion ratio. Based on the existing transfer restriction and the uncertainty of the outcome of the Visa litigation mentioned above, the remaining 83,014 Class B shares ( 135,296 Class A equivalents) that the Company owns as of June 30, 2018 are carried at a zero cost basis. |
Loans and Leases and the Allowa
Loans and Leases and the Allowance for Loan and Lease Losses | 6 Months Ended |
Jun. 30, 2018 | |
Loans and Leases and Allowance for Loan and Lease Losses [Abstract] | |
Loans and Leases and the Allowance for Loan and Lease Losses | Loans and Leases and the Allowance for Loan and Lease Losses Loans and Leases The Company’s loan and lease portfolio was comprised of the following as of June 30, 2018 and December 31, 2017 : (dollars in thousands) June 30, December 31, Commercial Commercial and Industrial $ 1,282,967 $ 1,279,347 Commercial Mortgage 2,169,357 2,103,967 Construction 185,350 202,253 Lease Financing 178,598 180,931 Total Commercial 3,816,272 3,766,498 Consumer Residential Mortgage 3,548,444 3,466,773 Home Equity 1,622,314 1,585,455 Automobile 592,705 528,474 Other 1 473,588 449,747 Total Consumer 6,237,051 6,030,449 Total Loans and Leases $ 10,053,323 $ 9,796,947 1 Comprised of other revolving credit, installment, and lease financing. The majority of the Company’s lending activity is with customers located in the State of Hawaii. A substantial portion of the Company’s real estate loans are secured by real estate in Hawaii. Net gains related to sales of residential mortgage loans, recorded as a component of mortgage banking income were $0.5 million and $1.8 million for the three months ended June 30, 2018 and 2017 , respectively, and $0.8 million and $3.2 million for the six months ended June 30, 2018 and 2017 , respectively. Allowance for Loan and Lease Losses (the “Allowance”) The following presents by portfolio segment, the activity in the Allowance for the three and six months ended June 30, 2018 and 2017 . The following also presents by portfolio segment, the balance in the Allowance disaggregated on the basis of the Company’s impairment measurement method and the related recorded investment in loans and leases as of June 30, 2018 and 2017 . (dollars in thousands) Commercial Consumer Total Three Months Ended June 30, 2018 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 64,110 $ 43,828 $ 107,938 Loans and Leases Charged-Off (485 ) (5,176 ) (5,661 ) Recoveries on Loans and Leases Previously Charged-Off 366 2,045 2,411 Net Loans and Leases Recovered (Charged-Off) (119 ) (3,131 ) (3,250 ) Provision for Credit Losses (279 ) 3,779 3,500 Balance at End of Period $ 63,712 $ 44,476 $ 108,188 Six Months Ended June 30, 2018 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 65,822 $ 41,524 $ 107,346 Loans and Leases Charged-Off (691 ) (10,958 ) (11,649 ) Recoveries on Loans and Leases Previously Charged-Off 694 4,172 4,866 Net Loans and Leases Recovered (Charged-Off) 3 (6,786 ) (6,783 ) Provision for Credit Losses (2,113 ) 9,738 7,625 Balance at End of Period $ 63,712 $ 44,476 $ 108,188 As of June 30, 2018 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 100 $ 3,827 $ 3,927 Collectively Evaluated for Impairment 63,612 40,649 104,261 Total 63,712 44,476 108,188 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 12,184 $ 41,981 $ 54,165 Collectively Evaluated for Impairment 3,804,088 6,195,070 9,999,158 Total $ 3,816,272 $ 6,237,051 $ 10,053,323 Three Months Ended June 30, 2017 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 66,893 $ 38,171 $ 105,064 Loans and Leases Charged-Off (124 ) (5,363 ) (5,487 ) Recoveries on Loans and Leases Previously Charged-Off 266 2,260 2,526 Net Loans and Leases Recovered (Charged-Off) 142 (3,103 ) (2,961 ) Provision for Credit Losses (853 ) 5,103 4,250 Balance at End of Period $ 66,182 $ 40,171 $ 106,353 Six Months Ended June 30, 2017 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 65,680 $ 38,593 $ 104,273 Loans and Leases Charged-Off (298 ) (10,893 ) (11,191 ) Recoveries on Loans and Leases Previously Charged-Off 602 4,019 4,621 Net Loans and Leases Recovered (Charged-Off) 304 (6,874 ) (6,570 ) Provision for Credit Losses 198 8,452 8,650 Balance at End of Period $ 66,182 $ 40,171 $ 106,353 As of June 30, 2017 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 45 $ 3,792 $ 3,837 Collectively Evaluated for Impairment 66,137 36,379 102,516 Total $ 66,182 $ 40,171 $ 106,353 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 20,197 $ 38,528 $ 58,725 Collectively Evaluated for Impairment 3,684,715 5,644,173 9,328,888 Total $ 3,704,912 $ 5,682,701 $ 9,387,613 Credit Quality Indicators The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company uses an internal credit risk rating system that categorizes loans and leases into pass, special mention, or classified categories. Credit risk ratings are applied individually to those classes of loans and leases that have significant or unique credit characteristics that benefit from a case-by-case evaluation. These are typically loans and leases to businesses or individuals in the classes which comprise the commercial portfolio segment. Groups of loans and leases that are underwritten and structured using standardized criteria and characteristics, such as statistical models (e.g., credit scoring or payment performance), are typically risk-rated and monitored collectively. These are typically loans and leases to individuals in the classes which comprise the consumer portfolio segment. The following are the definitions of the Company’s credit quality indicators: Pass: Loans and leases in all classes within the commercial and consumer portfolio segments that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan or lease agreement. Management believes that there is a low likelihood of loss related to those loans and leases that are considered pass. Special Mention: Loans and leases that have potential weaknesses that deserve management’s close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease. Management believes that there is a moderate likelihood of some loss related to those loans and leases that are considered special mention. Classified: Loans and leases in the classes within the commercial portfolio segment that are inadequately protected by the sound worth and paying capacity of the borrower or of the collateral pledged, if any. Classified loans and leases are also those in the classes within the consumer portfolio segment that are past due 90 days or more as to principal or interest. Residential mortgage loans that are past due 90 days or more as to principal or interest may be considered pass if the Company is in the process of collection and the current loan-to-value ratio is 60% or less. Home equity loans that are past due 90 days or more as to principal or interest may be considered pass if the Company is in the process of collection, the first mortgage is with the Company, and the current combined loan-to-value ratio is 60% or less. Residential mortgage and home equity loans may be current as to principal and interest, but may be considered classified for a period of generally up to six months following a loan modification. Following a period of demonstrated performance in accordance with the modified contractual terms, the loan may be removed from classified status. Management believes that there is a distinct possibility that the Company will sustain some loss if the deficiencies related to classified loans and leases are not corrected in a timely manner. The Company’s credit quality indicators are periodically updated on a case-by-case basis. The following presents by class and by credit quality indicator, the recorded investment in the Company’s loans and leases as of June 30, 2018 and December 31, 2017 . June 30, 2018 (dollars in thousands) Commercial and Industrial Commercial Mortgage Construction Lease Financing Total Commercial Pass $ 1,239,719 $ 2,116,370 $ 182,092 $ 177,800 $ 3,715,981 Special Mention 31,290 37,903 — 473 69,666 Classified 11,958 15,084 3,258 325 30,625 Total $ 1,282,967 $ 2,169,357 $ 185,350 $ 178,598 $ 3,816,272 (dollars in thousands) Residential Mortgage Home Equity Automobile Other 1 Total Consumer Pass $ 3,541,722 $ 1,617,621 $ 592,030 $ 472,918 $ 6,224,291 Classified 6,722 4,693 675 670 12,760 Total $ 3,548,444 $ 1,622,314 $ 592,705 $ 473,588 $ 6,237,051 Total Recorded Investment in Loans and Leases $ 10,053,323 December 31, 2017 (dollars in thousands) Commercial and Industrial Commercial Mortgage Construction Lease Financing Total Commercial Pass $ 1,234,738 $ 2,046,745 $ 198,926 $ 180,522 $ 3,660,931 Special Mention 15,394 35,762 6 11 51,173 Classified 29,215 21,460 3,321 398 54,394 Total $ 1,279,347 $ 2,103,967 $ 202,253 $ 180,931 $ 3,766,498 (dollars in thousands) Residential Mortgage Home Equity Automobile Other 1 Total Consumer Pass $ 3,457,531 $ 1,580,917 $ 527,587 $ 449,008 $ 6,015,043 Classified 9,242 4,538 887 739 15,406 Total $ 3,466,773 $ 1,585,455 $ 528,474 $ 449,747 $ 6,030,449 Total Recorded Investment in Loans and Leases $ 9,796,947 1 Comprised of other revolving credit, installment, and lease financing. Aging Analysis The following presents by class, an aging analysis of the Company’s loan and lease portfolio as of June 30, 2018 and December 31, 2017 . (dollars in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due Past Due 90 Days or More Non-Accrual Total Past Due and Non-Accrual Current Total Loans and Leases Non-Accrual Loans and Leases that are Current 2 As of June 30, 2018 Commercial Commercial and Industrial $ 551 $ 696 $ 2 $ 917 $ 2,166 $ 1,280,801 $ 1,282,967 $ 716 Commercial Mortgage 491 — 5,680 659 $ 6,830 $ 2,162,527 2,169,357 434 Construction 707 — — — 707 184,643 185,350 — Lease Financing — — — — — 178,598 178,598 — Total Commercial 1,749 696 5,682 1,576 9,703 3,806,569 3,816,272 1,150 Consumer Residential Mortgage 2,028 3,230 2,281 6,722 14,261 3,534,183 3,548,444 455 Home Equity 4,240 1,141 3,016 3,933 12,330 1,609,984 1,622,314 1,825 Automobile 10,809 1,976 674 — 13,459 579,246 592,705 — Other 1 2,794 1,401 1,660 — 5,855 467,733 473,588 — Total Consumer 19,871 7,748 7,631 10,655 45,905 6,191,146 6,237,051 2,280 Total $ 21,620 $ 8,444 $ 13,313 $ 12,231 $ 55,608 $ 9,997,715 $ 10,053,323 $ 3,430 As of December 31, 2017 Commercial Commercial and Industrial $ 4,196 $ 641 $ — $ 448 $ 5,285 $ 1,274,062 $ 1,279,347 $ 313 Commercial Mortgage 187 404 — 1,398 1,989 2,101,978 2,103,967 465 Construction — — — — — 202,253 202,253 — Lease Financing — — — — — 180,931 180,931 — Total Commercial 4,383 1,045 — 1,846 7,274 3,759,224 3,766,498 778 Consumer Residential Mortgage 7,815 2,008 2,703 9,243 21,769 3,445,004 3,466,773 806 Home Equity 2,532 2,736 1,624 3,991 10,883 1,574,572 1,585,455 1,312 Automobile 11,728 2,232 886 — 14,846 513,628 528,474 — Other 1 3,007 1,639 1,934 — 6,580 443,167 449,747 — Total Consumer 25,082 8,615 7,147 13,234 54,078 5,976,371 6,030,449 2,118 Total $ 29,465 $ 9,660 $ 7,147 $ 15,080 $ 61,352 $ 9,735,595 $ 9,796,947 $ 2,896 1 Comprised of other revolving credit, installment, and lease financing. 2 Represents non-accrual loans that are not past due 30 days or more; however, full payment of principal and interest is still not expected. Impaired Loans The following presents by class, information related to impaired loans as of June 30, 2018 and December 31, 2017 . (dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance for Loan Losses June 30, 2018 Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 6,097 $ 9,639 $ — Commercial Mortgage 3,203 6,703 — Construction 1,373 1,373 — Total Commercial 10,673 17,715 — Total Impaired Loans with No Related Allowance Recorded $ 10,673 $ 17,715 $ — Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 1,288 $ 1,900 $ 78 Commercial Mortgage 223 223 22 Total Commercial 1,511 2,123 100 Consumer Residential Mortgage 20,619 25,362 3,110 Home Equity 2,488 2,488 276 Automobile 16,010 16,010 328 Other 1 2,864 2,864 113 Total Consumer 41,981 46,724 3,827 Total Impaired Loans with an Allowance Recorded $ 43,492 $ 48,847 $ 3,927 Impaired Loans: Commercial $ 12,184 $ 19,838 $ 100 Consumer 41,981 46,724 3,827 Total Impaired Loans $ 54,165 $ 66,562 $ 3,927 December 31, 2017 Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 8,094 $ 15,747 $ — Commercial Mortgage 8,696 12,196 — Construction 1,415 1,415 — Total Commercial 18,205 29,358 — Total Impaired Loans with No Related Allowance Recorded $ 18,205 $ 29,358 $ — Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 811 $ 811 $ 21 Commercial Mortgage 1,200 1,200 120 Total Commercial 2,011 2,011 141 Consumer Residential Mortgage 21,581 26,324 3,118 Home Equity 1,965 1,965 276 Automobile 14,811 14,811 305 Other 1 2,645 2,645 76 Total Consumer 41,002 45,745 3,775 Total Impaired Loans with an Allowance Recorded $ 43,013 $ 47,756 $ 3,916 Impaired Loans: Commercial $ 20,216 $ 31,369 $ 141 Consumer 41,002 45,745 3,775 Total Impaired Loans $ 61,218 $ 77,114 $ 3,916 1 Comprised of other revolving credit and installment financing. The following presents by class, information related to the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2018 and 2017 . Three Months Ended Three Months Ended (dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 7,540 $ 83 $ 8,717 $ 61 Commercial Mortgage 6,351 30 9,369 77 Construction 1,386 22 1,477 24 Total Commercial 15,277 135 19,563 162 Total Impaired Loans with No Related Allowance Recorded $ 15,277 $ 135 $ 19,563 $ 162 Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 1,128 $ 10 $ 657 $ 9 Commercial Mortgage 236 3 331 4 Total Commercial 1,364 13 988 13 Consumer Residential Mortgage 20,509 215 23,148 214 Home Equity 2,221 26 1,621 20 Automobile 15,819 278 11,547 195 Other 1 2,806 56 2,663 57 Total Consumer 41,355 575 38,979 486 Total Impaired Loans with an Allowance Recorded $ 42,719 $ 588 $ 39,967 $ 499 Impaired Loans: Commercial $ 16,641 $ 148 $ 20,551 $ 175 Consumer 41,355 575 38,979 486 Total Impaired Loans $ 57,996 $ 723 $ 59,530 $ 661 Six Months Ended Six Months Ended (dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 7,724 $ 196 $ 8,996 $ 142 Commercial Mortgage 7,132 117 9,370 162 Construction 1,396 45 1,489 48 Total Commercial 16,252 358 19,855 352 Total Impaired Loans with No Related Allowance Recorded $ 16,252 $ 358 $ 19,855 $ 352 Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 1,022 $ 20 $ 693 $ 20 Commercial Mortgage 557 6 342 8 Total Commercial 1,579 26 1,035 28 Consumer Residential Mortgage 20,866 427 23,974 426 Home Equity 2,135 51 1,586 37 Automobile 15,483 539 10,918 364 Other 1 2,752 108 2,550 110 Total Consumer 41,236 1,125 39,028 937 Total Impaired Loans with an Allowance Recorded $ 42,815 $ 1,151 $ 40,063 $ 965 Impaired Loans: Commercial $ 17,831 $ 384 $ 20,890 $ 380 Consumer 41,236 1,125 39,028 937 Total Impaired Loans $ 59,067 $ 1,509 $ 59,918 $ 1,317 1 Comprised of other revolving credit and installment financing. For the three and six months ended June 30, 2018 and 2017 , the amounts of interest income recognized by the Company within the periods that the loans were impaired were primarily related to loans modified in a troubled debt restructuring that remained on accrual status. For the three and six months ended June 30, 2018 and 2017 , the amount of interest income recognized using a cash-basis method of accounting during the periods that the loans were impaired was not material. Modifications A modification of a loan constitutes a troubled debt restructuring (“TDR”) when the Company, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. Loans modified in a TDR were $52.6 million and $60.1 million as of June 30, 2018 and December 31, 2017 , respectively. There were $0.3 million and $1.5 million commitments to lend additional funds on loans modified in a TDR as of June 30, 2018 and December 31, 2017 , respectively. The Company offers various types of concessions when modifying a loan or lease. Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested. Commercial mortgage and construction loans modified in a TDR often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a co-borrower or guarantor. Construction loans modified in a TDR may also involve extending the interest-only payment period. Residential mortgage loans modified in a TDR generally include a lower interest rate and the loan being fully amortized for up to 40 years from the modification effective date. In some cases, the Company may forbear a portion of the unpaid principal balance with a balloon payment due upon maturity or pay-off of the loan. Land loans are also included in the class of residential mortgage loans. Land loans are typically structured as interest-only monthly payments with a balloon payment due at maturity. Land loan modifications usually involve extending the interest-only monthly payments up to an additional five years with a balloon payment due at maturity, or re-amortizing the remaining balance over a period up to 360 months . Interest rates are not changed for land loan modifications. Home equity modifications are made infrequently and uniquely designed to meet the specific needs of each borrower. Automobile loans modified in a TDR are primarily comprised of loans where the Company has lowered monthly payments by extending the term. Loans modified in a TDR are typically already on non-accrual status and partial charge-offs have in some cases already been taken against the outstanding loan balance. As a result, loans modified in a TDR may have the financial effect of increasing the specific Allowance associated with the loan. An Allowance for impaired commercial and consumer loans that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. The following presents by class, information related to loans modified in a TDR during the three and six months ended June 30, 2018 and 2017 . Loans Modified as a TDR for the Loans Modified as a TDR for the Recorded Increase in Recorded Increase in Troubled Debt Restructurings Number of Investment Allowance Number of Investment Allowance (dollars in thousands) Contracts (as of period end) 1 (as of period end) Contracts (as of period end) 1 (as of period end) Commercial Commercial and Industrial 6 $ 712 $ 48 6 $ 4,191 $ 11 Commercial Mortgage — — — 1 700 — Total Commercial 6 712 48 7 4,891 11 Consumer Residential Mortgage 2 455 30 — — — Home Equity 3 545 — 1 4 4 Automobile 72 1,521 31 99 2,115 49 Other 2 63 468 14 40 304 8 Total Consumer 140 2,989 75 140 2,423 61 Total 146 $ 3,701 $ 123 147 $ 7,314 $ 72 Loans Modified as a TDR for the Loans Modified as a TDR for the Recorded Increase in Recorded Increase in Troubled Debt Restructurings Number of Investment Allowance Number of Investment Allowance (dollars in thousands) Contracts (as of period end) 1 (as of period end) Contracts (as of period end) 1 (as of period end) Commercial Commercial and Industrial 7 $ 1,233 $ 48 11 $ 7,235 $ 11 Commercial Mortgage — — — 2 1,096 — Total Commercial 7 1,233 48 13 8,331 11 Consumer Residential Mortgage 2 455 30 — — — Home Equity 3 545 — 1 239 4 Automobile 170 3,654 75 209 4,315 99 Other 2 138 967 28 114 891 24 Total Consumer 313 5,621 133 324 5,445 127 Total 320 $ 6,854 $ 181 337 $ 13,776 $ 138 1 The period end balances reflect all paydowns and charge-offs since the modification date. TDRs fully paid-off, charged-off, or foreclosed upon by period end are not included. 2 Comprised of other revolving credit and installment financing. The following presents by class, all loans modified in a TDR that defaulted during the three and six months ended June 30, 2018 and 2017 , and within twelve months of their modification date. A TDR is considered to be in default once it becomes 60 days or more past due following a modification. Three Months Ended Three Months Ended TDRs that Defaulted During the Period, Recorded Recorded Within Twelve Months of their Modification Date Number of Investment Number of Investment (dollars in thousands) Contracts (as of period end) 1 Contracts (as of period end) 1 Consumer Automobile 14 $ 289 12 $ 267 Other 2 21 167 18 137 Total Consumer 35 456 30 404 Total 35 $ 456 30 $ 404 Six Months Ended Six Months Ended TDRs that Defaulted During the Period, Recorded Recorded Within Twelve Months of their Modification Date Number of Investment Number of Investment (dollars in thousands) Contracts (as of period end) 1 Contracts (as of period end) 1 Commercial Commercial and Industrial — $ — 1 $ 49 Total Commercial — — 1 49 Consumer Home Equity 1 236 — — Automobile 32 606 17 390 Other 2 41 295 36 255 Total Consumer 74 1,137 53 645 Total 74 $ 1,137 54 $ 694 1 The period end balances reflect all paydowns and charge-offs since the modification date. TDRs fully paid-off, charged-off, or foreclosed upon by period end are not included. 2 Comprised of other revolving credit and installment financing. Commercial and consumer loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, the Company evaluates the loan for possible further impairment. The specific Allowance associated with the loan may be increased, adjustments may be made in the allocation of the Allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan. Foreclosure Proceedings Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $3.9 million as of June 30, 2018 . |
Mortgage Servicing Rights
Mortgage Servicing Rights | 6 Months Ended |
Jun. 30, 2018 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Mortgage Servicing Rights | Mortgage Servicing Rights The Company’s portfolio of residential mortgage loans serviced for third parties was $2.9 billion as of June 30, 2018 and December 31, 2017 . Substantially all of these loans were originated by the Company and sold to third parties on a non-recourse basis with servicing rights retained. These retained servicing rights are recorded as a servicing asset and are initially recorded at fair value (see Note 14 Fair Value of Assets and Liabilities for more information). Changes to the balance of mortgage servicing rights are recorded in mortgage banking income in the Company’s consolidated statements of income. The Company’s mortgage servicing activities include collecting principal, interest, and escrow payments from borrowers; making tax and insurance payments on behalf of borrowers; monitoring delinquencies and executing foreclosure proceedings; and accounting for and remitting principal and interest payments to investors. Servicing income, including late and ancillary fees, was $1.8 million for the three months ended June 30, 2018 and 2017 , and $3.6 million and $3.5 million for the six months ended June 30, 2018 and 2017 , respectively. Servicing income is recorded in mortgage banking income in the Company’s consolidated statements of income. The Company’s residential mortgage investor loan servicing portfolio is primarily comprised of fixed rate loans concentrated in Hawaii. For the three and six months ended June 30, 2018 and 2017 , the change in the carrying value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows: Three Months Ended Six Months Ended (dollars in thousands) 2018 2017 2018 2017 Balance at Beginning of Period $ 1,404 $ 1,586 $ 1,454 $ 1,655 Change in Fair Value: Due to Payoffs (38 ) (38 ) (88 ) (107 ) Total Changes in Fair Value of Mortgage Servicing Rights (38 ) (38 ) (88 ) (107 ) Balance at End of Period $ 1,366 $ 1,548 $ 1,366 $ 1,548 For the three and six months ended June 30, 2018 and 2017 , the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows: Three Months Ended Six Months Ended (dollars in thousands) 2018 2017 2018 2017 Balance at Beginning of Period $ 23,089 $ 22,705 $ 23,168 $ 22,008 Servicing Rights that Resulted From Asset Transfers 775 961 1,396 2,276 Amortization (647 ) (690 ) (1,347 ) (1,308 ) Valuation Allowance Provision — (53 ) — (53 ) Balance at End of Period $ 23,217 $ 22,923 $ 23,217 $ 22,923 Valuation Allowance: Balance at Beginning of Period $ — $ — $ — $ — Valuation Allowance Provision — (53 ) — (53 ) Balance at End of Period $ — $ (53 ) $ — $ (53 ) Fair Value of Mortgage Servicing Rights Accounted for Under the Amortization Method Beginning of Period $ 28,600 $ 25,946 $ 26,716 $ 25,148 End of Period $ 29,746 $ 25,479 $ 29,746 $ 25,479 The key data and assumptions used in estimating the fair value of the Company’s mortgage servicing rights as of June 30, 2018 and December 31, 2017 were as follows: June 30, December 31, 2017 Weighted-Average Constant Prepayment Rate 1 6.45 % 8.50 % Weighted-Average Life (in years) 8.13 7.09 Weighted-Average Note Rate 4.04 % 4.04 % Weighted-Average Discount Rate 2 9.76 % 8.87 % 1 Represents annualized loan prepayment rate assumption. 2 Derived from multiple interest rate scenarios that incorporate a spread to a market yield curve and market volatilities. A sensitivity analysis of the Company’s fair value of mortgage servicing rights to changes in certain key assumptions as of June 30, 2018 and December 31, 2017 is presented in the following table. (dollars in thousands) June 30, December 31, Constant Prepayment Rate Decrease in fair value from 25 basis points (“bps”) adverse change $ (380 ) $ (332 ) Decrease in fair value from 50 bps adverse change (756 ) (657 ) Discount Rate Decrease in fair value from 25 bps adverse change (332 ) (289 ) Decrease in fair value from 50 bps adverse change (658 ) (572 ) This analysis generally cannot be extrapolated because the relationship of a change in one key assumption to the change in the fair value of the Company’s mortgage servicing rights usually is not linear. Also, the effect of changing one key assumption without changing other assumptions is not realistic. |
Low Income Housing Tax Credit P
Low Income Housing Tax Credit Partnerships | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Low Income Housing Tax Credit Partnerships | Affordable Housing Projects Tax Credit Partnerships The Company makes equity investments in various limited partnerships that sponsor affordable housing projects utilizing the Low Income Housing Tax Credit (“LIHTC”) pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital, to facilitate the sale of affordable housing product offerings, and to assist in achieving goals associated with the Community Reinvestment Act. The primary activities of the limited partnerships include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants. Generally, these types of investments are funded through a combination of debt and equity. The Company is a limited partner in each LIHTC limited partnership. Each limited partnership is managed by an unrelated third party general partner who exercises significant control over the affairs of the limited partnership. The general partner has all the rights, powers and authority granted or permitted to be granted to a general partner of a limited partnership. Duties entrusted to the general partner of each limited partnership include, but are not limited to: investment in operating companies, company expenditures, investment of excess funds, borrowing funds, employment of agents, disposition of fund property, prepayment and refinancing of liabilities, votes and consents, contract authority, disbursement of funds, accounting methods, tax elections, bank accounts, insurance, litigation, cash reserve, and use of working capital reserve funds. Except for limited rights granted to the limited partner(s) relating to the approval of certain transactions, the limited partner(s) may not participate in the operation, management, or control of the limited partnership’s business, transact any business in the limited partnership’s name or have any power to sign documents for or otherwise bind the limited partnership. In addition, the general partner may only be removed by the limited partner(s) in the event the general partner fails to comply with the terms of the agreement or is negligent in performing its duties. The general partner of each limited partnership has both the power to direct the activities which most significantly affect the performance of each partnership and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. Therefore, the Company has determined that it is not the primary beneficiary of any LIHTC partnership. The Company uses the effective yield method to account for its pre-2015 investments in these entities. Beginning January 1, 2015, any new investments that meet the requirements of the proportional amortization method are recognized using the proportional amortization method. The Company’s net affordable housing tax credit investments and related unfunded commitments were $68.9 million and $71.7 million as of June 30, 2018 and December 31, 2017 , respectively, and are included in other assets in the consolidated statements of condition. Unfunded Commitments As of June 30, 2018 , the expected payments for unfunded affordable housing commitments were as follows: (dollars in thousands) Amount 2018 $ 8,802 2019 4,126 2020 85 2021 45 2022 56 Thereafter 680 Total Unfunded Commitments $ 13,794 The following table presents tax credits and other tax benefits recognized and amortization expense related to affordable housing for the three and six months ended June 30, 2018 and 2017 . Three Months Ended Six Months Ended (dollars in thousands) 2018 2017 2018 2017 Effective Yield Method Tax credits and other tax benefits recognized $ 3,380 $ 3,439 $ 6,812 $ 6,869 Amortization Expense in Provision for Income Taxes 2,078 2,137 4,155 4,298 Proportional Amortization Method Tax credits and other tax benefits recognized $ 410 $ 440 $ 820 $ 761 Amortization Expense in Provision for Income Taxes 333 358 666 611 There were no impairment losses related to LIHTC investments during the six months ended June 30, 2018 and 2017 . During the first quarter of 2018, the Company recorded a $2.0 million adjustment to increase its LIHTC investments. This adjustment resulted in a decrease to provision for income tax. |
Balance Sheet Offsetting
Balance Sheet Offsetting | 6 Months Ended |
Jun. 30, 2018 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting | Balance Sheet Offsetting Interest Rate Swap Agreements (“Swap Agreements”) The Company enters into swap agreements to facilitate the risk management strategies of a small number of commercial banking customers. The Company mitigates the risk of entering into these agreements by entering into equal and offsetting swap agreements with highly-rated third party financial institutions. The swap agreements are free-standing derivatives and are recorded at fair value in the Company’s consolidated statements of condition (asset positions are included in other assets and liability positions are included in other liabilities). The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of cash or marketable securities, is posted by the party (i.e., the Company or the financial institution counterparty) with net liability positions in accordance with contract thresholds. The Company had net liability positions with its financial institution counterparties totaling $0.1 million and $3.2 million as of June 30, 2018 and December 31, 2017 , respectively. See Note 12 Derivative Financial Instruments for more information. Parties to a centrally cleared over-the-counter derivative exchange daily payments that reflect the daily change in value of the derivative. Effective 2017, these payments, commonly referred to as variation margin, are recorded as settlements of the derivatives’ mark-to-market exposure rather than collateral against the exposures. This rule change effectively results in any centrally cleared derivative having a fair value that approximates zero on a daily basis, and therefore, these swap agreements were not included in the offsetting table at the end of this section. See Note 12 Derivative Financial Instruments for more information. Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”) The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as sales and subsequent repurchases of securities. The obligation to repurchase the securities is reflected as a liability in the Company’s consolidated statements of condition, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. As a result, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Company does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements. The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., fail to make an interest payment to the counterparty). For private institution repurchase agreements, if the private institution counterparty were to default (e.g., declare bankruptcy), the Company could cancel the repurchase agreement (i.e., cease payment of principal and interest) and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third party financial institution in the counterparty’s custodial account. The counterparty has the right to sell or repledge the investment securities. For government entity repurchase agreements, the collateral is held by the Company in a segregated custodial account under a tri-party agreement. The Company is required by the counterparty to maintain adequate collateral levels. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional securities. The Company closely monitors collateral levels to ensure adequate levels are maintained, while mitigating the potential risk of over-collateralization in the event of counterparty default. The following table presents the remaining contractual maturities of the Company’s repurchase agreements as of June 30, 2018 and December 31, 2017 , disaggregated by the class of collateral pledged. Remaining Contractual Maturity of Repurchase Agreements (dollars in thousands) Up to 91-365 days 1-3 Years After Total June 30, 2018 Class of Collateral Pledged: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ 677 $ — $ — $ 677 Debt Securities Issued by States and Political Subdivisions 1,000 1,690 913 — 3,603 Mortgage-Backed Securities: Residential - Government Agencies — — 203,361 200,707 404,068 Residential - U.S. Government-Sponsored Enterprises — 826 70,726 24,293 95,845 Total $ 1,000 $ 3,193 $ 275,000 $ 225,000 $ 504,193 December 31, 2017 Class of Collateral Pledged: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ — $ 110,392 $ 202,484 $ 312,876 Debt Securities Issued by States and Political Subdivisions 1,200 2,590 — — 3,790 Mortgage-Backed Securities: Residential - Government Agencies 1,503 — 18,793 80,960 101,256 Residential - U.S. Government-Sponsored Enterprises — — 20,815 66,556 87,371 Total $ 2,703 $ 2,590 $ 150,000 $ 350,000 $ 505,293 The following table presents the assets and liabilities subject to an enforceable master netting arrangement, or repurchase agreements, as of June 30, 2018 and December 31, 2017 . The swap agreements the Company has with our commercial banking customers are not subject to an enforceable master netting arrangement, and therefore, are excluded from this table. As previously mentioned, centrally cleared swap agreements between the Company and institutional counterparties are also excluded from this table. (i) (ii) (iii) = (i)-(ii) (iv) (v) = (iii)-(iv) Gross Amounts Recognized in the Statements of Condition Gross Amounts Offset in the Statements of Condition Net Amounts Presented in the Statements of Condition Gross Amounts Not Offset in the Statements of Condition (dollars in thousands) Netting Adjustments per Master Netting Arrangements Fair Value of Collateral Pledged/Received 1 Net Amount June 30, 2018 Assets: Interest Rate Swap Agreements: Institutional Counterparties $ 12,569 $ — $ 12,569 $ 1,391 $ 1,522 $ 9,656 Liabilities: Interest Rate Swap Agreements: Institutional Counterparties 1,391 — 1,391 1,391 — — Repurchase Agreements: Private Institutions 500,000 — 500,000 — 500,000 — Government Entities 4,193 — 4,193 — 4,193 — $ 504,193 $ — $ 504,193 $ — $ 504,193 $ — December 31, 2017 Assets: Interest Rate Swap Agreements: Institutional Counterparties $ 5,453 $ — $ 5,453 $ 4,017 $ — $ 1,436 Liabilities: Interest Rate Swap Agreements: Institutional Counterparties 4,017 — 4,017 4,017 — — Repurchase Agreements: Private Institutions 500,000 — 500,000 — 500,000 — Government Entities 5,293 — 5,293 — 5,293 — $ 505,293 $ — $ 505,293 $ — $ 505,293 $ — 1 The application of collateral cannot reduce the net amount below zero. Therefore, excess collateral is not reflected in this table. For swap agreements with institutional counterparties, there was no collateral pledged to institutional counterparties as of June 30, 2018 . The fair value of investment securities pledged to the institutional counterparties was $3.5 million as of December 31, 2017 . For repurchase agreements with private institutions, the fair value of investment securities pledged was $539.4 million and $563.3 million as of June 30, 2018 and December 31, 2017 , respectively. For repurchase agreements with government entities, the fair value of investment securities pledged was $6.9 million as of June 30, 2018 and December 31, 2017 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table presents the components of other comprehensive income (loss) for the three and six months ended June 30, 2018 and 2017 : (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2018 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ (4,622 ) $ (1,223 ) $ (3,399 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 578 153 425 Net Unrealized Gains (Losses) on Investment Securities (4,044 ) (1,070 ) (2,974 ) Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 436 116 320 Amortization of Prior Service Credit (142 ) (38 ) (104 ) Defined Benefit Plans, Net 294 78 216 Other Comprehensive Income (Loss) $ (3,750 ) $ (992 ) $ (2,758 ) Three Months Ended June 30, 2017 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ 4,642 $ 1,833 $ 2,809 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 491 194 297 Net Unrealized Gains (Losses) on Investment Securities 5,133 2,027 3,106 Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 322 127 195 Amortization of Prior Service Credit (80 ) (32 ) (48 ) Defined Benefit Plans, Net 242 95 147 Other Comprehensive Income (Loss) $ 5,375 $ 2,122 $ 3,253 Six Months Ended June 30, 2018 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ (17,679 ) $ (4,675 ) $ (13,004 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 1,237 328 909 Net Unrealized Gains (Losses) on Investment Securities (16,442 ) (4,347 ) (12,095 ) Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 872 232 640 Amortization of Prior Service Credit (284 ) (76 ) (208 ) Defined Benefit Plans, Net 588 156 432 Other Comprehensive Income (Loss) $ (15,854 ) $ (4,191 ) $ (11,663 ) Six Months Ended June 30, 2017 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ 12,222 $ 4,824 $ 7,398 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 995 393 602 Net Unrealized Gains (Losses) on Investment Securities 13,217 5,217 8,000 Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 645 255 390 Amortization of Prior Service Credit (161 ) (64 ) (97 ) Defined Benefit Plans, Net 484 191 293 Other Comprehensive Income (Loss) $ 13,701 $ 5,408 $ 8,293 1 The amount relates to the amortization/accretion of unrealized net gains and losses related to the Company’s reclassification of available-for-sale investment securities to the held-to-maturity category. The unrealized net gains/losses will be amortized/accreted over the remaining life of the investment securities as an adjustment of yield. The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, for the three and six months ended June 30, 2018 and 2017 : (dollars in thousands) Investment Securities-Available-for-Sale Investment Securities-Held-to-Maturity Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) Three Months Ended June 30, 2018 Balance at Beginning of Period $ (11,932 ) $ (5,697 ) $ (33,468 ) $ (51,097 ) Other Comprehensive Income (Loss) Before Reclassifications (3,399 ) — — (3,399 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 425 216 641 Total Other Comprehensive Income (Loss) (3,399 ) 425 216 (2,758 ) Balance at End of Period $ (15,331 ) $ (5,272 ) $ (33,252 ) $ (53,855 ) Three Months Ended June 30, 2017 Balance at Beginning of Period $ 5,859 $ (5,979 ) $ (28,746 ) $ (28,866 ) Other Comprehensive Income (Loss) Before Reclassifications 2,809 — — 2,809 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 297 147 444 Total Other Comprehensive Income (Loss) 2,809 297 147 3,253 Balance at End of Period $ 8,668 $ (5,682 ) $ (28,599 ) $ (25,613 ) Six Months Ended June 30, 2018 Balance at Beginning of Period $ (1,915 ) $ (5,085 ) $ (27,715 ) $ (34,715 ) Other Comprehensive Income (Loss) Before Reclassifications (13,004 ) — — (13,004 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 909 432 1,341 Total Other Comprehensive Income (Loss) (13,004 ) 909 432 (11,663 ) Reclassification of the Income Tax Effects of the (412 ) (1,096 ) (5,969 ) (7,477 ) Balance at End of Period $ (15,331 ) $ (5,272 ) $ (33,252 ) $ (53,855 ) Six Months Ended June 30, 2017 Balance at Beginning of Period $ 1,270 $ (6,284 ) $ (28,892 ) $ (33,906 ) Other Comprehensive Income (Loss) Before Reclassifications 7,398 — — 7,398 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 602 293 895 Total Other Comprehensive Income (Loss) 7,398 602 293 8,293 Balance at End of Period $ 8,668 $ (5,682 ) $ (28,599 ) $ (25,613 ) The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2018 and 2017 : Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) 1 Affected Line Item in the Statement Where Net Income Is Presented Three Months Ended June 30, (dollars in thousands) 2018 2017 Amortization of Unrealized Holding Gains (Losses) on Investment Securities Held-to-Maturity $ (578 ) $ (491 ) Interest Income 153 194 Provision for Income Tax (425 ) (297 ) Net of Tax Amortization of Defined Benefit Plan Items Prior Service Credit 2 142 80 Net Actuarial Losses 2 (436 ) (322 ) (294 ) (242 ) Total Before Tax 78 95 Provision for Income Tax (216 ) (147 ) Net of Tax Total Reclassifications for the Period $ (641 ) $ (444 ) Net of Tax Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) 1 Affected Line Item in the Statement Where Net Income Is Presented Six Months Ended June 30, (dollars in thousands) 2018 2017 Amortization of Unrealized Holding Gains (Losses) on Investment Securities Held-to-Maturity $ (1,237 ) $ (995 ) Interest Income 328 393 Provision for Income Tax (909 ) (602 ) Net of Tax Amortization of Defined Benefit Plan Items Prior Service Credit 2 284 161 Net Actuarial Losses 2 (872 ) (645 ) (588 ) (484 ) Total Before Tax 156 191 Provision for Income Tax (432 ) (293 ) Net of Tax Total Reclassifications for the Period $ (1,341 ) $ (895 ) Net of Tax 1 Amounts in parentheses indicate reductions to net income. 2 These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost and are included in Other Noninterest Expense on the consolidated statements of income (see Note 11 Pension Plans and Postretirement Benefit Plan for additional details). |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share There were no adjustments to net income, the numerator, for purposes of computing earnings per share. The following is a reconciliation of the weighted average number of common shares outstanding for computing diluted earnings per share and antidilutive stock options and restricted stock outstanding for the three and six months ended June 30, 2018 and 2017 : Three Months Ended Six Months Ended 2018 2017 2018 2017 Denominator for Basic Earnings Per Share 41,884,221 42,353,976 41,960,743 42,379,730 Dilutive Effect of Equity Based Awards 267,979 304,909 292,157 324,280 Denominator for Diluted Earnings Per Share 42,152,200 42,658,885 42,252,900 42,704,010 Antidilutive Stock Options and Restricted Stock Outstanding 1,293 7,127 1,293 — |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services and Private Banking, and Treasury and Other. The Company’s internal management accounting process measures the performance of these business segments. This process, which is not necessarily comparable with the process used by any other financial institution, uses various techniques to assign balance sheet and income statement amounts to the business segments, including allocations of income, expense, the provision for credit losses, and capital. This process is dynamic and requires certain allocations based on judgment and other subjective factors. Unlike financial accounting, there is no comprehensive authoritative guidance for management accounting that is equivalent to GAAP. Previously reported results have been reclassified to conform to the current reporting structure. The net interest income of the business segments reflects the results of a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics and reflects the allocation of net interest income related to the Company’s overall asset and liability management activities on a proportionate basis. The basis for the allocation of net interest income is a function of the Company’s assumptions that are subject to change based on changes in current interest rates and market conditions. Funds transfer pricing also serves to transfer interest rate risk to Treasury. However, the other business segments have some latitude to retain certain interest rate exposures related to customer pricing decisions within guidelines. The provision for credit losses reflects the actual net charge-offs of the business segments. The amount of the consolidated provision for loan and lease losses is based on the methodology that we use to estimate the Company’s consolidated Allowance. The residual provision for credit losses to arrive at the consolidated provision for credit losses is included in Treasury and Other. Noninterest income and expense includes allocations from support units to business units. These allocations are based on actual usage where practicably calculated or by management’s estimate of such usage. The provision for income taxes is allocated to business segments using a 26% effective income tax rate. However, the provision for income taxes for the Company’s Leasing business unit (included in the Commercial Banking segment) and Auto Leasing portfolio and Pacific Century Life Insurance business unit (both included in the Retail Banking segment) are assigned their actual effective income tax rates due to the unique relationship that income taxes have with their products. The residual income tax expense or benefit to arrive at the consolidated effective income tax rate is included in Treasury and Other. Retail Banking Retail Banking offers a broad range of financial products and services to consumers and small businesses. Loan and lease products include residential mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, small business loans and leases, and credit cards. Deposit products include checking, savings, and time deposit accounts. Retail Banking also offers some types of consumer insurance products. Products and services from Retail Banking are delivered to customers through 69 branch locations and 385 ATMs throughout Hawaii and the Pacific Islands, e-Bankoh (on-line banking service), a 24-hour customer service center, and a mobile banking service. Commercial Banking Commercial Banking offers products including corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. Commercial lending and deposit products are offered to middle-market and large companies in Hawaii and the Pacific Islands. In addition, Commercial Banking offers deposit products to government entities in Hawaii. Commercial real estate mortgages focus on customers that include investors, developers, and builders predominantly domiciled in Hawaii. Commercial Banking also includes international banking and provides merchant services to its customers. Investment Services and Private Banking Investment Services and Private Banking includes private banking and international client banking services, trust services, investment management, and institutional investment advisory services. A significant portion of this segment’s income is derived from fees, which are generally based on the market values of assets under management. The private banking and personal trust groups assist individuals and families in building and preserving their wealth by providing investment, credit, and trust services to high-net-worth individuals. The investment management group manages portfolios utilizing a variety of investment products. Institutional client services offer investment advice to corporations, government entities, and foundations. This segment also provides a full service brokerage offering equities, mutual funds, life insurance, and annuity products. Treasury and Other Treasury consists of corporate asset and liability management activities, including interest rate risk management and a foreign currency exchange business. This segment’s assets and liabilities (and related interest income and expense) consist of interest-bearing deposits, investment securities, federal funds sold and purchased, and short and long-term borrowings. The primary sources of noninterest income are from bank-owned life insurance, net gains from the sale of investment securities, and foreign exchange income related to customer-driven currency requests from merchants and island visitors. The net residual effect of the transfer pricing of assets and liabilities is included in Treasury, along with the elimination of intercompany transactions. Other organizational units (Technology, Operations, Marketing, Human Resources, Finance, Credit and Risk Management, and Corporate and Regulatory Administration) provide a wide-range of support to the Company’s other income earning segments. Expenses incurred by these support units are charged to the business segments through an internal cost allocation process. Selected business segment financial information as of and for the three and six months ended June 30, 2018 and 2017 were as follows: (dollars in thousands) Retail Banking Commercial Banking Investment Services and Private Banking Treasury and Other Consolidated Total Three Months Ended June 30, 2018 Net Interest Income $ 65,683 $ 44,010 $ 10,526 $ 277 $ 120,496 Provision for Credit Losses 3,445 (194 ) — 249 3,500 Net Interest Income After Provision for Credit Losses 62,238 44,204 10,526 28 116,996 Noninterest Income 19,598 5,512 14,745 1,443 41,298 Noninterest Expense (51,939 ) (19,858 ) (16,400 ) (2,594 ) (90,791 ) Income Before Provision for Income Taxes 29,897 29,858 8,871 (1,123 ) 67,503 Provision for Income Taxes (7,473 ) (6,740 ) (2,338 ) 3,766 (12,785 ) Net Income $ 22,424 $ 23,118 $ 6,533 $ 2,643 $ 54,718 Total Assets as of June 30, 2018 $ 6,142,457 $ 3,799,535 $ 342,464 $ 6,839,706 $ 17,124,162 Three Months Ended June 30, 2017 Net Interest Income $ 66,348 $ 41,737 $ 6,714 $ (2,520 ) $ 112,279 Provision for Credit Losses 3,099 (132 ) (6 ) 1,289 4,250 Net Interest Income After Provision for Credit Losses 63,249 41,869 6,720 (3,809 ) 108,029 Noninterest Income 21,920 5,876 15,247 2,193 45,236 Noninterest Expense (52,018 ) (18,407 ) (15,295 ) (2,469 ) (88,189 ) Income Before Provision for Income Taxes 33,151 29,338 6,672 (4,085 ) 65,076 Provision for Income Taxes (11,741 ) (10,325 ) (2,469 ) 4,121 (20,414 ) Net Income $ 21,410 $ 19,013 $ 4,203 $ 36 $ 44,662 Total Assets as of June 30, 2017 $ 5,626,767 $ 3,658,867 $ 307,529 $ 7,388,129 $ 16,981,292 Six Months Ended June 30, 2018 Net Interest Income $ 130,080 $ 86,908 $ 20,413 $ 2,051 $ 239,452 Provision for Credit Losses 7,188 (345 ) (60 ) 842 7,625 Net Interest Income After Provision for Credit Losses 122,892 87,253 20,473 1,209 231,827 Noninterest Income 38,851 11,154 28,415 6,913 85,333 Noninterest Expense (106,538 ) (40,190 ) (32,607 ) (5,840 ) (185,175 ) Income Before Provision for Income Taxes 55,205 58,217 16,281 2,282 131,985 Provision for Income Taxes (13,764 ) (13,564 ) (4,292 ) 8,393 (23,227 ) Net Income $ 41,441 $ 44,653 $ 11,989 $ 10,675 $ 108,758 Total Assets as of June 30, 2018 $ 6,142,457 $ 3,799,535 $ 342,464 $ 6,839,706 $ 17,124,162 Six Months Ended June 30, 2017 Net Interest Income $ 131,505 $ 83,668 $ 13,364 $ (6,386 ) $ 222,151 Provision for Credit Losses 6,900 (320 ) (11 ) 2,081 8,650 Net Interest Income After Provision for Credit Losses 124,605 83,988 13,375 (8,467 ) 213,501 Noninterest Income 42,845 11,314 29,796 17,197 101,152 Noninterest Expense (104,278 ) (36,762 ) (30,766 ) (4,951 ) (176,757 ) Income Before Provision for Income Taxes 63,172 58,540 12,405 3,779 137,896 Provision for Income Taxes (22,415 ) (20,581 ) (4,590 ) 5,528 (42,058 ) Net Income $ 40,757 $ 37,959 $ 7,815 $ 9,307 $ 95,838 Total Assets as of June 30, 2017 $ 5,626,767 $ 3,658,867 $ 307,529 $ 7,388,129 $ 16,981,292 |
Pension Plans and Postretiremen
Pension Plans and Postretirement Benefit Plan | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pension Plans and Postretirement Benefit Plan | Pension Plans and Postretirement Benefit Plan Components of net periodic benefit cost for the Company’s pension plans and the postretirement benefit plan are presented in the following table for the three and six months ended June 30, 2018 and 2017 . Pension Benefits Postretirement Benefits (dollars in thousands) 2018 2017 2018 2017 Three Months Ended June 30, Service Cost $ — $ — $ 115 $ 123 Interest Cost 1,041 1,161 236 272 Expected Return on Plan Assets (1,282 ) (1,238 ) — — Amortization of: Prior Service Credit — — (142 ) (80 ) Net Actuarial Losses (Gains) 498 432 (62 ) (110 ) Net Periodic Benefit Cost $ 257 $ 355 $ 147 $ 205 Six Months Ended June 30, Service Cost $ — $ — $ 230 $ 246 Interest Cost 2,082 2,322 471 544 Expected Return on Plan Assets (2,564 ) (2,476 ) — — Amortization of: Prior Service Credit — — (284 ) (161 ) Net Actuarial Losses (Gains) 996 865 (124 ) (220 ) Net Periodic Benefit Cost $ 514 $ 711 $ 293 $ 409 The service cost component of net periodic benefit cost are included in salaries and benefits and all other components of net periodic benefit cost are included in other noninterest expense in the consolidated statements of income for the Company’s pension plans and postretirement benefit plan. For the three and six months ended June 30, 2018 , the Company contributed $0.1 million and $0.2 million , respectively, to the pension plans and $0.3 million and $0.5 million , respectively, to the postretirement benefit plan. The Company expects to contribute a total of $0.5 million to the pension plans and $0.9 million to the postretirement benefit plan for the year ending December 31, 2018 . |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The notional amount and fair value of the Company’s derivative financial instruments as of June 30, 2018 and December 31, 2017 were as follows: June 30, 2018 December 31, 2017 (dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Interest Rate Lock Commitments $ 31,298 $ 707 $ 35,422 $ 789 Forward Commitments 33,336 (115 ) 45,143 (56 ) Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps 453,275 (11,494 ) 374,670 (1,331 ) Pay Fixed/Receive Variable Swaps 453,275 11,178 374,670 1,436 Foreign Exchange Contracts 48,305 (241 ) 54,332 (13 ) Conversion Rate Swap Agreement 81,058 (1,000 ) 70,571 — The following table presents the Company’s derivative financial instruments, their fair values, and their location in the consolidated statements of condition as of June 30, 2018 and December 31, 2017 : Derivative Financial Instruments June 30, 2018 December 31, 2017 Not Designated as Hedging Instruments 1 Asset Liability Asset Liability (dollars in thousands) Derivatives Derivatives Derivatives Derivatives Interest Rate Lock Commitments $ 708 $ 1 $ 789 $ — Forward Commitments 10 125 14 70 Interest Rate Swap Agreements 14,422 14,738 9,583 9,478 Foreign Exchange Contracts 72 313 132 145 Conversion Rate Swap Agreement — 1,000 — — Total $ 15,212 $ 16,177 $ 10,518 $ 9,693 1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the consolidated statements of condition. The following table presents the Company’s derivative financial instruments and the amount and location of the net gains or losses recognized in the consolidated statements of income for the three and six months ended June 30, 2018 and 2017 : Location of Derivative Financial Instruments Net Gains (Losses) Three Months Ended Six Months Ended Not Designated as Hedging Instruments Recognized in the June 30, June 30, (dollars in thousands) Statements of Income 2018 2017 2018 2017 Interest Rate Lock Commitments Mortgage Banking $ 968 $ 1,655 $ 1,498 $ 2,922 Forward Commitments Mortgage Banking 240 (465 ) 925 (889 ) Interest Rate Swap Agreements Other Noninterest Income 632 525 750 680 Foreign Exchange Contracts Other Noninterest Income 995 796 1,959 1,846 Conversion Rate Swap Agreement Investment Securities Gains (Losses), Net (1,000 ) — (1,000 ) — Total $ 1,835 $ 2,511 $ 4,132 $ 4,559 Management has received authorization from the Bank’s Board of Directors to use derivative financial instruments as an end-user in connection with the Bank’s risk management activities and to accommodate the needs of the Bank’s customers. As with any financial instrument, derivative financial instruments have inherent risks. Market risk is defined as the risk of adverse financial impact due to fluctuations in interest rates, foreign exchange rates, and equity prices. Market risks associated with derivative financial instruments are balanced with the expected returns to enhance earnings performance and shareholder value, while limiting the volatility of each. The Company uses various processes to monitor its overall market risk exposure, including sensitivity analysis, value-at-risk calculations, and other methodologies. Derivative financial instruments are also subject to credit and counterparty risk, which is defined as the risk of financial loss if a borrower or counterparty is either unable or unwilling to repay borrowings or settle transactions in accordance with the underlying contractual terms. Credit and counterparty risks associated with derivative financial instruments are similar to those relating to traditional financial instruments. The Company manages derivative credit and counterparty risk by evaluating the creditworthiness of each borrower or counterparty, adhering to the same credit approval process used for commercial lending activities. As of June 30, 2018 and December 31, 2017 , the Company did not designate any derivative financial instruments as formal hedging relationships. The Company’s free-standing derivative financial instruments are required to be carried at their fair value on the Company’s consolidated statements of condition. These financial instruments have been limited to interest rate lock commitments (“IRLCs”), forward commitments, interest rate swap agreements, foreign exchange contracts, and conversion rate swap agreements. The Company enters into IRLCs for residential mortgage loans which commit us to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs that relate to the origination of mortgage loans that will be held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose the Company to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. To mitigate this risk, the Company utilizes forward commitments as economic hedges against the potential decreases in the values of the loans held for sale. IRLCs and forward commitments are free-standing derivatives which are carried at fair value with changes recorded in the mortgage banking component of noninterest income in the Company’s consolidated statements of income. The Company enters into interest rate swap agreements to facilitate the risk management strategies of a small number of commercial banking customers. The Company mitigates the interest rate risk of entering into these agreements by entering into equal and offsetting interest rate swap agreements with highly rated third party financial institutions. The interest rate swap agreements are free-standing derivatives and are recorded at fair value in the Company’s consolidated statements of condition. Fair value changes are recorded in other noninterest income in the Company’s consolidated statements of income. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. Collateral, usually in the form of cash or marketable securities, is posted by the counterparty with net liability positions in accordance with contract thresholds. See Note 7 Balance Sheet Offsetting for more information. The Company’s interest rate swap agreements with financial institution counterparties may contain credit-risk-related contingent features tied to a specified credit rating of the Company. Under these provisions, should the Company’s specified rating fall below a particular level (e.g., investment grade), or if the Company no longer obtains the specified rating, the counterparty may require the Company to pledge collateral on an immediate and ongoing basis (subject to the requirement that such swaps are in a net liability position beyond the level specified in the contract), or require immediate settlement of the swap agreement. Other credit-risk-related contingent features may also allow the counterparty to require immediate settlement of the swap agreement if the Company fails to maintain a specified minimum level of capitalization. With regard to derivative contracts not centrally cleared through a clearinghouse, regulations require collateral to be posted by the party with a net liability position (i.e., the threshold for posting collateral was reduced to zero, subject to certain minimum transfer amounts). The requirements generally applied to new derivative contracts entered into by the Company after March 1, 2017, although certain counterparties may elect to apply lower thresholds to existing contracts. Parties to a centrally cleared over-the-counter derivative exchange daily payments that reflect the daily change in value of the derivative. These payments are commonly referred to as variation margin. Historically, variation margin payments have typically been treated as collateral against the derivative position. Effective 2017, the Chicago Mercantile Exchange and LCH.Clearnet Limited (collectively, the “clearinghouses”) amended their rulebooks to legally characterize variation margin payments for over-the-counter derivatives they clear as settlements of the derivatives’ mark-to-market exposure rather than collateral against the exposures. This rule change effectively causes any derivative cleared through one of the clearinghouses to have a fair value that approximates zero on a daily basis. During the second quarter of 2017, the Company executed its first swap agreements cleared through one of the clearinghouses. Going forward, the Company expects most of the swap agreements executed with third party financial institutions will be required to be cleared through one of the clearinghouses. The uncleared swap agreements executed with third party financial institutions will remain subject to the collateral requirements and credit-risk-related contingent features described in the previous paragraphs, and therefore, are not subject to the variation margin rule change. Likewise, the swap agreements executed with the Company’s commercial banking customers will remain uncleared and will also not be subject to the variation margin rule change. The Company utilizes foreign exchange contracts to offset risks related to transactions executed on behalf of customers. The foreign exchange contracts are free-standing derivatives which are carried at fair value with changes included in other noninterest income in the Company’s consolidated statements of income. As each sale of Visa Class B restricted shares was completed, the Company entered into a conversion rate swap agreement with the buyer that requires payment to the buyer in the event Visa further reduces the conversion ratio of Class B into Class A unrestricted common shares. In the event of Visa increasing the conversion ratio, the buyer would be required to make payment to the Company. The conversion rate swap agreement was valued at zero (i.e., no contingent liability recorded) as further reductions to the conversion ratio were deemed neither probable nor reasonably estimable by management. However, in June 2018, Visa announced a reduction of the conversion ratio from 1.6483 to 1.6298 effective June 28, 2018. As a result, the Company recorded a $1.0 million liability in June 2018 which represents the amount due to the buyers of the Visa Class B shares in July 2018. Further reductions to the conversion ratio were deemed neither probable nor reasonably estimable by management. See Note 3 Investment Securities for more information. |
Commitments, Contingencies, and
Commitments, Contingencies, and Guarantees | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Guarantees | Commitments, Contingencies, and Guarantees The Company’s credit commitments as of June 30, 2018 and December 31, 2017 were as follows: (dollars in thousands) June 30, December 31, Unfunded Commitments to Extend Credit $ 2,869,256 $ 2,780,724 Standby Letters of Credit 64,857 60,519 Commercial Letters of Credit 13,058 18,036 Total Credit Commitments $ 2,947,171 $ 2,859,279 Unfunded Commitments to Extend Credit Commitments to extend credit are agreements to lend to a customer as long as there is no violation of the terms or conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since commitments may expire without being drawn, the total commitment amount does not necessarily represent future cash requirements. Standby and Commercial Letters of Credit Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally become payable upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and a third party. The contractual amount of these letters of credit represents the maximum potential future payments guaranteed by the Company. The Company has recourse against the customer for any amount it is required to pay to a third party under a standby letter of credit, and generally holds cash or deposits as collateral on those standby letters of credit for which collateral is deemed necessary. Contingencies The Company is subject to various pending and threatened legal proceedings arising within the normal course of business or operations. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the most recent information available. On a case-by-case basis, reserves are established for those legal claims for which it is probable that a loss will be incurred and the amount of such loss can be reasonably estimated. Based on information currently available, management believes that the eventual outcome of these claims against the Company will not be materially in excess of such amounts reserved by the Company. However, in the event of unexpected future developments, it is possible that the ultimate resolution of these matters may result in a loss that materially exceeds the reserves established by the Company. Risks Related to Representation and Warranty Provisions The Company sells residential mortgage loans in the secondary market primarily to the Federal National Mortgage Association (“Fannie Mae”). The Company also pools Federal Housing Administration (“FHA”) insured and U.S. Department of Veterans Affairs (“VA”) guaranteed residential mortgage loans for sale to the Government National Mortgage Corporation (“Ginnie Mae”). These pools of FHA-insured and VA-guaranteed residential mortgage loans are securitized by Ginnie Mae. The agreements under which the Company sells residential mortgage loans to Fannie Mae or Ginnie Mae and the insurance or guaranty agreements with FHA and VA contain provisions that include various representations and warranties regarding the origination and characteristics of the residential mortgage loans. Although the specific representations and warranties vary among investors, insurance or guarantee agreements, they typically cover ownership of the loan, validity of the lien securing the loan, the absence of delinquent taxes or liens against the property securing the loan, compliance with loan criteria set forth in the applicable agreement, compliance with applicable federal, state, and local laws, and other matters. As of June 30, 2018 , the unpaid principal balance of residential mortgage loans sold by the Company was $2.7 billion . The agreements under which the Company sells residential mortgage loans require delivery of various documents to the investor or its document custodian. Although these loans are primarily sold on a non-recourse basis, the Company may be obligated to repurchase residential mortgage loans or reimburse investors for losses incurred if a loan review reveals that underwriting and documentation standards were potentially not met. Some agreements may require the Company to repurchase delinquent loans. Upon receipt of a repurchase request, the Company works with investors or insurers to arrive at a mutually agreeable resolution. Repurchase demands are typically reviewed on an individual loan-by-loan basis to validate the claims made by the investor or insurer and to determine if a contractually required repurchase event has occurred. The Company manages the risk associated with potential repurchases or other forms of settlement through its underwriting and quality assurance practices and by servicing mortgage loans to meet investor and secondary market standards. During the six months ended June 30, 2018 , there were five residential mortgage loans repurchased with an aggregate unpaid principal balance of $1.2 million as a result of the representation and warranty provisions contained in these contracts. Four of the loans were delinquent in payment of principal and interest at the time of repurchase, however no material losses were incurred related to these repurchases. As of June 30, 2018 , there were no pending repurchase requests related to representation and warranty provisions. Risks Relating to Residential Mortgage Loan Servicing Activities In addition to servicing loans in the Company’s portfolio, substantially all of the loans the Company sells to investors are sold with servicing rights retained. The Company also services loans originated by other mortgage loan originators. As servicer, the Company’s primary duties are to: (1) collect payments due from borrowers; (2) advance certain delinquent payments of principal and interest; (3) maintain and administer any hazard, title, or primary mortgage insurance policies relating to the mortgage loans; (4) maintain any required escrow accounts for payment of taxes and insurance and administer escrow payments; and (5) foreclose on defaulted mortgage loans or, to the extent consistent with the documents governing a securitization, consider alternatives to foreclosure, such as loan modifications or short sales. Each agreement under which the Company acts as servicer generally specifies a standard of responsibility for actions taken by the Company in such capacity and provides protection against expenses and liabilities incurred by the Company when acting in compliance with the respective servicing agreements. However, if the Company commits a material breach of obligations as servicer, the Company may be subject to termination if the breach is not cured within a specified period following notice. The standards governing servicing and the possible remedies for violations of such standards vary by investor. These standards and remedies are determined by servicing guides issued by the investors as well as the contract provisions established between the investors and the Company. Remedies could include repurchase of an affected loan. For the six months ended June 30, 2018 , there were no loans repurchased related to loan servicing activities. As of June 30, 2018 , there were no pending repurchase requests related to loan servicing activities. Although to date repurchase requests related to representation and warranty provisions and servicing activities have been limited, it is possible that requests to repurchase mortgage loans may increase in frequency as investors more aggressively pursue all means of recovering losses on their purchased loans. However, as of June 30, 2018 , management believes that this exposure is not material due to the historical level of repurchase requests and loss trends and thus has not established a liability for losses related to mortgage loan repurchases. As of June 30, 2018 , 99% of the Company’s residential mortgage loans serviced for investors were current. The Company maintains ongoing communications with investors and continues to evaluate this exposure by monitoring the level and number of repurchase requests as well as the delinquency rates in the loans sold to investors. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Fair Value Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that require significant management judgment or estimation, some of which may be internally developed. Management maximizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value measurements. Management reviews and updates the fair value hierarchy classifications of the Company’s assets and liabilities on a quarterly basis. Assets and Liabilities Measured at Fair Value on a Recurring Basis Investment Securities Available-for-Sale Fair values of investment securities available-for-sale were primarily measured using information from a third-party pricing service. This service provides pricing information by utilizing evaluated pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data from market research publications. Level 1 investment securities are comprised of debt securities issued by the U.S. Treasury, as quoted prices were available, unadjusted, for identical securities in active markets. Level 2 investment securities were primarily comprised of debt securities issued by the Small Business Administration, states and municipalities, corporations, as well as mortgage-backed securities issued by government agencies and government-sponsored enterprises. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models. In cases where there may be limited or less transparent information provided by the Company’s third-party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third-party broker quotes. On a quarterly basis, management reviews the pricing information received from the Company’s third-party pricing service. This review process includes a comparison to non-binding third-party broker quotes, as well as a review of market-related conditions impacting the information provided by the Company’s third-party pricing service. Management primarily identifies investment securities which may have traded in illiquid or inactive markets by identifying instances of a significant decrease in the volume or frequency of trades, relative to historical levels, as well as instances of a significant widening of the bid-ask spread in the brokered markets. Investment securities that are deemed to have been trading in illiquid or inactive markets may require the use of significant unobservable inputs to determine fair value. As of June 30, 2018 and December 31, 2017 , management did not make adjustments to prices provided by the third-party pricing service as a result of illiquid or inactive markets. On a quarterly basis, management also reviews a sample of securities priced by the Company’s third-party pricing service to review the significant assumptions and valuation methodologies used by the service. Based on this review, management determines whether the current placement of the security in the fair value hierarchy is appropriate or whether transfers may be warranted. The Company’s third-party pricing service has also established processes for us to submit inquiries regarding quoted prices. Periodically, the Company will challenge the quoted prices provided by our third-party pricing service. The Company’s third-party pricing service will review the inputs to the evaluation in light of the new market data presented by us. The Company’s third-party pricing service may then affirm the original quoted price or may update the evaluation on a going-forward basis. Loans Held for Sale The fair value of the Company’s residential mortgage loans held for sale was determined based on quoted prices for similar loans in active markets, and therefore, is classified as a Level 2 measurement. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active market with readily observable market data. As a result, the Company estimates the fair value of mortgage servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company stratifies its mortgage servicing portfolio on the basis of loan type. The assumptions used in the discounted cash flow model are those that we believe market participants would use in estimating future net servicing income. Significant assumptions in the valuation of mortgage servicing rights include estimated loan repayment rates, the discount rate, servicing costs, and the timing of cash flows, among other factors. Mortgage servicing rights are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation. Other Assets Other assets recorded at fair value on a recurring basis are primarily comprised of investments related to deferred compensation arrangements. Quoted prices for these investments, primarily in mutual funds, are available in active markets. Thus, the Company’s investments related to deferred compensation arrangements are classified as Level 1 measurements in the fair value hierarchy. Derivative Financial Instruments Derivative financial instruments recorded at fair value on a recurring basis are comprised of IRLCs, forward commitments, interest rate swap agreements, foreign exchange contracts, and Visa Class B to Class A shares conversion rate swap agreements. The fair values of IRLCs are calculated based on the value of the underlying loan held for sale, which in turn is based on quoted prices for similar loans in the secondary market. However, this value is adjusted by a factor which considers the likelihood that the loan in a locked position will ultimately close. This factor, the closing ratio, is derived from the Bank’s internal data and is adjusted using significant management judgment. As such, IRLCs are classified as Level 3 measurements. Forward commitments are classified as Level 2 measurements as they are primarily based on quoted prices from the secondary market based on the settlement date of the contracts, interpolated or extrapolated, if necessary, to estimate a fair value as of the end of the reporting period. The fair values of interest rate swap agreements are calculated using a discounted cash flow approach and utilize Level 2 observable inputs such as a market yield curve, effective date, maturity date, notional amount, and stated interest rate. In addition, the Company includes in its fair value calculation a credit factor adjustment which is based primarily on management judgment. Thus, interest rate swap agreements are classified as a Level 3 measurement. The fair values of foreign exchange contracts are calculated using the Bank’s multi-currency accounting system which utilizes contract specific information such as currency, maturity date, contractual amount, and strike price, along with market data information such as the spot rates of specific currency and yield curves. Foreign exchange contracts are classified as Level 2 measurements because while they are valued using the Bank’s multi-currency accounting system, significant management judgment or estimation is not required. The fair value of the Visa Class B restricted shares to Class A unrestricted common shares conversion rate swap agreements represent the amount owed by the Company to the buyer of the Visa Class B shares as a result of a reduction of the conversion ratio subsequent to the sales date. As of June 30, 2018 and December 31, 2017 , the conversion rate swap agreements were valued at $1.0 million and zero , respectively. This conversion rate swap agreement is classified as a Level 2 measurement. See Note 12 Derivative Financial Instruments for more information. The Company is exposed to credit risk if borrowers or counterparties fail to perform. The Company seeks to minimize credit risk through credit approvals, limits, monitoring procedures, and collateral requirements. The Company generally enters into transactions with borrowers and counterparties that carry high quality credit ratings. Credit risk associated with borrowers or counterparties as well as the Company’s non-performance risk is factored into the determination of the fair value of derivative financial instruments. The table below presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 : Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) (Level 1) (Level 2) (Level 3) Total June 30, 2018 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 535 $ 444,177 $ — $ 444,712 Debt Securities Issued by States and Political Subdivisions — 592,601 — 592,601 Debt Securities Issued by Corporations — 223,777 — 223,777 Mortgage-Backed Securities: Residential - Government Agencies — 210,696 — 210,696 Residential - U.S. Government-Sponsored Enterprises — 559,868 — 559,868 Commercial - Government Agencies — 61,216 — 61,216 Total Mortgage-Backed Securities — 831,780 — 831,780 Total Investment Securities Available-for-Sale 535 2,092,335 — 2,092,870 Loans Held for Sale — 16,025 — 16,025 Mortgage Servicing Rights — — 1,366 1,366 Other Assets 32,400 — — 32,400 Derivatives 1 — 82 15,130 15,212 Total Assets Measured at Fair Value on a $ 32,935 $ 2,108,442 $ 16,496 $ 2,157,873 Liabilities: Derivatives 1 $ — $ 1,438 $ 14,739 $ 16,177 Total Liabilities Measured at Fair Value on a $ — $ 1,438 $ 14,739 $ 16,177 December 31, 2017 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 538 $ 425,392 $ — $ 425,930 Debt Securities Issued by States and Political Subdivisions — 627,019 — 627,019 Debt Securities Issued by Corporations — 266,111 — 266,111 Mortgage-Backed Securities: Residential - Government Agencies — 235,360 — 235,360 Residential - U.S. Government-Sponsored Enterprises — 609,812 — 609,812 Commercial - Government Agencies — 68,747 — 68,747 Total Mortgage-Backed Securities — 913,919 — 913,919 Total Investment Securities Available-for-Sale 538 2,232,441 — 2,232,979 Loans Held for Sale — 19,231 — 19,231 Mortgage Servicing Rights — — 1,454 1,454 Other Assets 29,230 — — 29,230 Derivatives 1 — 146 10,372 10,518 Total Assets Measured at Fair Value on a $ 29,768 $ 2,251,818 $ 11,826 $ 2,293,412 Liabilities: Derivatives 1 $ — $ 215 $ 9,478 $ 9,693 Total Liabilities Measured at Fair Value on a $ — $ 215 $ 9,478 $ 9,693 1 The fair value of each class of derivatives is shown in Note 12 Derivative Financial Instruments . For the three and six months ended June 30, 2018 and 2017 , the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (dollars in thousands) Mortgage Servicing Rights 1 Net Derivative Assets and Liabilities 2 Three Months Ended June 30, 2018 Balance as of April 1, 2018 $ 1,404 $ 547 Realized and Unrealized Net Gains (Losses): Included in Net Income (38 ) 968 Transfers to Loans Held for Sale — (1,198 ) Variation Margin Payments — 74 Balance as of June 30, 2018 $ 1,366 $ 391 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 391 Three Months Ended June 30, 2017 Balance as of April 1, 2017 $ 1,586 $ 1,248 Realized and Unrealized Net Gains (Losses): Included in Net Income (38 ) 1,640 Transfers to Loans Held for Sale — (1,877 ) Variation Margin Payments — 358 Balance as of June 30, 2017 $ 1,548 $ 1,369 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 1,369 Six Months Ended June 30, 2018 Balance as of January 1, 2018 $ 1,454 $ 894 Realized and Unrealized Net Gains (Losses): Included in Net Income (88 ) 1,505 Transfers to Loans Held for Sale — (1,580 ) Variation Margin Payments — (428 ) Balance as of June 30, 2018 $ 1,366 $ 391 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 391 Six Months Ended June 30, 2017 Balance as of January 1, 2017 $ 1,655 $ 1,053 Realized and Unrealized Net Gains (Losses): Included in Net Income (107 ) 2,908 Transfers to Loans Held for Sale — (2,950 ) Variation Margin Payments — 358 Balance as of June 30, 2017 $ 1,548 $ 1,369 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 1,369 1 Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of mortgage banking income in the Company’s consolidated statements of income. 2 Realized and unrealized gains and losses related to interest rate lock commitments are reported as a component of mortgage banking income in the Company’s consolidated statements of income. Realized and unrealized gains and losses related to interest rate swap agreements are reported as a component of other noninterest income in the Company’s consolidated statements of income. For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of June 30, 2018 and December 31, 2017 , the significant unobservable inputs used in the fair value measurements were as follows: Significant Unobservable Inputs (weighted-average) Fair Value (dollars in thousands) Valuation Technique Description June 30, Dec. 31, June 30, Dec. 31, Mortgage Servicing Rights Discounted Cash Flow Constant Prepayment Rate 1 6.45 % 8.50 % $ 31,112 $ 28,170 Discount Rate 2 9.76 % 8.87 % Net Derivative Assets and Liabilities: Interest Rate Lock Commitments Pricing Model Closing Ratio 91.95 % 93.25 % $ 707 $ 789 Interest Rate Swap Agreements Discounted Cash Flow Credit Factor 0.02 % 0.10 % $ (316 ) $ 105 1 Represents annualized loan repayment rate assumption. 2 Derived from multiple interest rate scenarios that incorporate a spread to a market yield curve and market volatilities. The significant unobservable inputs used in the fair value measurement of the Company’s mortgage servicing rights are the weighted-average constant prepayment rate and weighted-average discount rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. Although the constant prepayment rate and the discount rate are not directly interrelated, they generally move in opposite directions of each other. The Company estimates the fair value of mortgage servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company’s Treasury Division enters observable and unobservable inputs into the model to arrive at an estimated fair value. To assess the reasonableness of the fair value measurement, the Treasury Division performs a back-test by comparing the model’s results to historical prepayment data. The Treasury Division also compares the fair value of the Company’s mortgage servicing rights to a value calculated by an independent third party. Discussions are held with members from the Treasury, Mortgage Banking, and Controllers Divisions, along with the independent third party to discuss and reconcile the fair value estimates and key assumptions used by the respective parties in arriving at those estimates. A subcommittee of the Company’s Asset/Liability Management Committee is responsible for providing oversight over the valuation methodology and key assumptions. The significant unobservable input used in the fair value measurement of the Company’s IRLCs is the closing ratio, which represents the percentage of loans currently in a lock position which management estimates will ultimately close. Generally, the fair value of an IRLC is positive (negative) if the prevailing interest rate is lower (higher) than the IRLC rate. Therefore, an increase in the closing ratio (i.e., higher percentage of loans are estimated to close) will increase the gain or loss. The closing ratio is largely dependent on the loan processing stage that a loan is currently in and the change in prevailing interest rates from the time of the rate lock. The closing ratio is computed by the Company’s secondary marketing system using historical data and the ratio is periodically reviewed by the Company. The unobservable input used in the fair value measurement of the Company’s interest rate swap agreements is the credit factor. This factor represents the risk that a counterparty is either unable or unwilling to settle a transaction in accordance with the underlying contractual terms. A significant increase (decrease) in the credit factor could result in a significantly lower (higher) fair value measurement. The credit factor is determined by the Treasury Division based on the risk rating assigned to each counterparty in which the Company holds a net asset position. The Company’s Credit Policy Committee periodically reviews and approves the Expected Default Frequency of the Economic Capital Model for Credit Risk. The Expected Default Frequency is used as the credit factor for interest rate swap agreements. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Company may be required periodically to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower-of-cost-or-fair value accounting or impairment write-downs of individual assets. As of June 30, 2018 and December 31, 2017 , there were no material adjustments to fair value for the Company’s assets and liabilities measured at fair value on a nonrecurring basis in accordance with GAAP. Fair Value Option The Company elects the fair value option for all residential mortgage loans held for sale. This election allows for a more effective offset of the changes in fair values of the loans held for sale and the derivative financial instruments used to financially hedge them without having to apply complex hedge accounting requirements. As noted above, the fair value of the Company’s residential mortgage loans held for sale was determined based on quoted prices for similar loans in active markets. The following table reflects the difference between the aggregate fair value and the aggregate unpaid principal balance of the Company’s residential mortgage loans held for sale as of June 30, 2018 and December 31, 2017 . (dollars in thousands) Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Unpaid Principal June 30, 2018 Loans Held for Sale $ 16,025 $ 15,669 $ 356 December 31, 2017 Loans Held for Sale $ 19,231 $ 18,854 $ 377 Changes in the estimated fair value of residential mortgage loans held for sale are reported as a component of mortgage banking income in the Company’s consolidated statements of income. For the three and six months ended June 30, 2018 and 2017 , the net gains or losses from the change in fair value of the Company’s residential mortgage loans held for sale were not material. Financial Instruments Not Recorded at Fair Value on a Recurring Basis The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments not recorded at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 . This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For non-marketable equity securities such as Federal Home Loan Bank and Federal Reserve Bank stock, the carrying amount is a reasonable estimate of fair value as these securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. Fair Value Measurements Carrying Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) June 30, 2018 Financial Instruments - Assets Investment Securities Held-to-Maturity $ 3,595,891 $ 3,500,497 $ 362,782 $ 3,137,715 $ — Loans 1 9,688,883 9,577,141 — — 9,577,141 Financial Instruments - Liabilities Time Deposits 1,713,323 1,699,097 — 1,699,097 — Securities Sold Under Agreements to Repurchase 504,193 504,167 — 504,167 — Other Debt 2 225,000 223,424 — 223,424 — December 31, 2017 Financial Instruments - Assets Investment Securities Held-to-Maturity $ 3,928,170 $ 3,894,121 $ 373,640 $ 3,520,481 $ — Loans 1 9,436,506 9,519,369 — — 9,519,369 Financial Instruments - Liabilities Time Deposits 1,688,092 1,679,684 — 1,679,684 — Securities Sold Under Agreements to Repurchase 505,293 505,278 — 505,278 — Other Debt 2 250,000 248,520 — 248,520 — 1 Carrying amount is net of unearned income and the Allowance. In accordance with the prospective adoption of ASU No. 2016-01, the fair value of loans as of June 30, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion. 2 Excludes capitalized lease obligations. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. As stated in Note 1 Summary of Significant Accounting Policies , the implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below. Trust and Asset Management Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Fees, Exchange, and Other Service Charges Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Annuity and Insurance Annuity and insurance income primarily consists of commissions received on annuity product sales. The Company acts as an intermediary between the Company’s customer and the insurance carrier. The Company’s performance obligation is generally satisfied upon the issuance of the annuity policy. Shortly after the policy is issued, the carrier remits the commission payment to the Company, and the Company recognizes the revenue. The Company does not earn a significant amount of trailer fees on annuity sales. The majority of the trailer fees relates to variable annuity products and are calculated based on a percentage of market value at period end. Revenue is not recognized until the annuity’s market value can be determined. Other Other noninterest income consists of other recurring revenue streams such as commissions from sales of mutual funds and other investments, investment advisor fees from the Company’s Managed Account Platform Services (MAPS) wealth management product, safety deposit box rental fees, and other miscellaneous revenue streams. Commissions from the sale of mutual funds and other investments are recognized on trade date, which is when the Company has satisfied its performance obligation. The Company also receives periodic service fees (i.e., trailers) from mutual fund companies typically based on a percentage of net asset value. Trailer revenue is recorded over time, usually monthly or quarterly, as net asset value is determined. Investment advisor fees from the MAPS wealth management product is earned over time and based on an annual percentage rate of the net asset value. The investment advisor fees are charged to the customer’s account in advance on the first month of the quarter, and the revenue is recognized over the following three-month period. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30, 2018 and 2017 . Three Months Ended Six Months Ended (dollars in thousands) 2018 2017 2018 2017 Noninterest Income In-scope of Topic 606: Trust and Asset Management $ 11,356 $ 11,796 $ 22,537 $ 23,275 Service Charges on Deposit Accounts 3,214 3,823 6,788 7,856 Fees, Exchange, and Other Service Charges 11,457 11,279 23,050 22,034 Annuity and Insurance 1,758 1,999 2,901 3,890 Other 2,532 2,449 4,810 4,544 Noninterest Income (in-scope of Topic 606) 30,317 31,346 60,086 61,599 Noninterest Income (out-of-scope of Topic 606) 10,981 13,890 25,247 39,553 Total Noninterest Income $ 41,298 $ 45,236 $ 85,333 $ 101,152 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of June 30, 2018 and December 31, 2017 , the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Bank of Hawaii Corporation (the “Parent”) is a Delaware corporation and a bank holding company headquartered in Honolulu, Hawaii. Bank of Hawaii Corporation and its subsidiaries (collectively, the “Company”) provide a broad range of financial products and services to customers in Hawaii, Guam, and other Pacific Islands. The accompanying consolidated financial statements include the accounts of the Parent and its subsidiaries. The Parent’s principal operating subsidiary is Bank of Hawaii (the “Bank”). The consolidated financial statements in this report have not been audited by an independent registered public accounting firm, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the results for the interim periods. All such adjustments are of a normal recurring nature. Intercompany accounts and transactions have been eliminated in consolidation. Certain prior period information has been reclassified to conform to the current period presentation. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for the full fiscal year or for any future period. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and accompanying notes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements. |
Variable Interest Entities | Variable Interest Entities Variable interests are defined as contractual ownership or other interests in an entity that change with fluctuations in an entity’s net asset value. The primary beneficiary consolidates the variable interest entity (“VIE”). The primary beneficiary is defined as the enterprise that has both the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. The Company has limited partnership interests in several low-income housing partnerships. These partnerships provide funds for the construction and operation of apartment complexes that provide affordable housing to lower-income households. If these developments successfully attract a specified percentage of residents falling in that lower-income range, state and/or federal income tax credits are made available to the partners. The tax credits are generally recognized over 10 years. In order to continue receiving the tax credits each year over the life of the partnership, the low-income residency targets must be maintained. Prior to January 1, 2015, the Company utilized the effective yield method whereby the Company recognized tax credits generally over 10 years and amortized the initial cost of the investment to provide a constant effective yield over the period that tax credits are allocated to the Company. On January 1, 2015, the Company adopted ASU No. 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects” prospectively for new investments. ASU No. 2014-01 permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. As permitted by ASU No. 2014-01, the Company elected to continue to utilize the effective yield method for investments made prior to January 1, 2015. Unfunded commitments to fund these low-income housing partnerships were $13.8 million and $17.5 million as of June 30, 2018 and December 31, 2017 , respectively. These unfunded commitments are unconditional and legally binding and are recorded in other liabilities in the consolidated statements of condition. See Note 6 Affordable Housing Projects Tax Credit Partnerships for more information. The Company also has limited partnership interests in solar energy tax credit partnership investments. These partnerships develop, build, own and operate solar renewable energy projects. Over the course of these investments, the Company expects to receive federal and state tax credits, tax-related benefits, and excess cash available for distribution, if any. The Company may be called to sell its interest in the limited partnerships through a call option once all investment tax credits have been recognized. Tax benefits associated with these investments are generally recognized over six years. These entities meet the definition of a VIE; however, the Company is not the primary beneficiary of the entities as the general partner has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. While the partnership agreements allow the limited partners, through a majority vote, to remove the general partner, this right is not deemed to be substantive as the general partner can only be removed for cause. The investments in these entities are initially recorded at cost, which approximates the maximum exposure to loss as a result of the Company’s involvement with these unconsolidated entities. The balance of the Company’s investments in these entities was $82.9 million and $87.6 million as of June 30, 2018 and December 31, 2017 , respectively, and is included in other assets in the consolidated statements of condition. |
Accounting Standards Adopted in the Current Year or Pending Adoption | Accounting Standards Adopted in 2018 In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies generally will be required to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. Subsequent to the issuance of ASU 2014-09, the FASB issued targeted updates to clarify specific implementation issues including ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU No. 2016-10, “Identifying Performance Obligations and Licensing,” ASU No. 2016-12, “Narrow-Scope Improvements and Practical Expedients,” and ASU No. 2016-20 “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers.” For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. Since the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, the new guidance did not have a material impact on revenue most closely associated with financial instruments, including interest income and expense. The Company completed its overall assessment of revenue streams and review of related contracts potentially affected by the ASU, including trust and asset management fees, deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. Based on this assessment, the Company concluded that ASU 2014-09 did not materially change the method in which the Company currently recognizes revenue for these revenue streams. The Company also completed its evaluation of certain costs related to these revenue streams to determine whether such costs should be presented as expenses or contra-revenue (i.e., gross vs. net). Based on its evaluation, the Company determined that the classification of certain debit and credit card related costs should change (i.e., costs previously recorded as expense is now recorded as contra-revenue, and vice versa). These classification changes resulted in immaterial changes to both revenue and expense. The Company also determined that certain costs related to ATMs should be recorded as an expense rather than a reduction of revenue. This change did not have a material effect to noninterest income or expense. The Company adopted ASU 2014-09 and its related amendments on its required effective date of January 1, 2018 utilizing the modified retrospective approach. Since there was no net income impact upon adoption of the new guidance, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Consistent with the modified retrospective approach, the Company did not adjust prior period amounts for the debit and credit card costs and the ATM costs reclassifications noted above. See Note 15 Revenue Recognition for more information. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments by making targeted improvements to GAAP as follows: (1) require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; (2) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; (3) eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (4) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (5) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (6) require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (7) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (8) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The Company’s adoption of ASU No. 2016-01 on January 1, 2018 did not have a material impact on the Company’s Consolidated Financial Statements. In accordance with (5) above, the Company measured the fair value of its loan portfolio as of June 30, 2018 using an exit price notion (see Note 14 Fair Value of Assets and Liabilities ). In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments.” At the time, GAAP was unclear or did not include specific guidance on how to classify certain transactions in the statement of cash flows. This ASU is intended to reduce diversity in practice in how eight particular transactions are classified in the statement of cash flows. ASU No. 2016-15 was effective for interim and annual reporting periods beginning after December 15, 2017. Entities were required to apply the guidance retrospectively. If it is impracticable to apply the guidance retrospectively for an issue, the amendments related to that issue would be applied prospectively. The Company adopted ASU No. 2016-15 on January 1, 2018. ASU No. 2016-15 did not have a material impact on the Company’s Consolidated Financial Statements. In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” Under the new guidance, employers are required to present the service cost component of the net periodic benefit cost in the same income statement line item (e.g., Salaries and Benefits) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Employers will present the other components of net periodic benefit cost separately (e.g., Other Noninterest Expense) from the line item that includes the service cost. ASU No. 2017-07 became effective for interim and annual reporting periods beginning after December 15, 2017. Employers will apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component will be applied prospectively. The Company adopted ASU No. 2017-07 on January 1, 2018 and utilized the ASU’s practical expedient allowing entities to estimate amounts for comparative periods using the information previously disclosed in their pension and other postretirement benefit plan footnote. ASU No. 2017-07 did not have a material impact on the Company’s Consolidated Financial Statements. In February 2018, the FASB issued ASU No. 2018-02, “ Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU allows a reclassification from accumulated other comprehensive income (“AOCI”) to retained earnings for certain income tax effects stranded in AOCI as a result of the Tax Act. Consequently, the reclassification eliminates the stranded tax effects resulting from the Tax Act and is intended to improve the usefulness of information reported to financial statement users. However, because the ASU only relates to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires the effect of a change in tax laws or rates to be included in income from continuing operations is not affected. ASU No. 2018-02 is effective for the Company's reporting period beginning on January 1, 2019; early adoption is permitted. The Company elected to early adopt ASU No. 2018-02 during the first quarter of 2018, and elected to reclassify the income tax effects of the Tax Act from AOCI to retained earnings. The reclassification decreased AOCI and increased retained earnings by $7.5 million , with zero net effect on total shareholders’ equity. The Company utilizes the individual securities approach when releasing income tax effects from AOCI for its investment securities. Accounting Standards Pending Adoption In February 2016, the FASB issued ASU No. 2016-02, “Leases.” Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases): 1) a lease liability, which is the present value of a lessee’s obligation to make lease payments, and 2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. Leveraged leases have been eliminated, although lessors can continue to account for existing leveraged leases using the current accounting guidance. Other limited changes were made to align lessor accounting with the lessee accounting model and the new revenue recognition standard . All entities will classify leases to determine how to recognize lease-related revenue and expense. Quantitative and qualitative disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The intention is to require enough information to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities. ASU No. 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. All entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. They have the option to use certain relief; full retrospective application is prohibited. The Company has several lease agreements, such as branch locations, which are currently considered operating leases, and therefore, not recognized on the Company’s consolidated statements of condition. The Company expects the new guidance will require these lease agreements to be recognized on the consolidated statements of condition as a right-of-use asset and a corresponding lease liability. Therefore, the Company’s preliminary evaluation indicates the provisions of ASU No. 2016-02 are expected to impact the Company’s consolidated statements of condition, along with the Company’s regulatory capital ratios. However, the Company continues to evaluate the extent of potential impact the new guidance will have on the Company’s Consolidated Financial Statements. The Company is nearing completion of identifying a complete inventory of arrangements containing a lease and accumulating the lease data necessary to apply the amended guidance. In addition, the Company purchased new software to aid in the transition to the new leasing guidance, and the majority of the Company’s leases have been entered into this new leasing software program. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. In issuing the standard, the FASB is responding to criticism that today’s guidance delays recognition of credit losses. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the credit losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company is continuing its implementation efforts through its Company-wide implementation team. This team has assigned roles and responsibilities, key tasks to complete, and a general timeline to be followed. The team meets periodically to discuss the latest developments and ensure progress is being made. The team also keeps current on evolving interpretations and industry practices related to ASU 2016-13 via webcasts, publications, conferences, and peer bank meetings. The team is currently working with an advisory consultant in reviewing and validating the possible methodologies the Company can consider for CECL before determining the specific methodologies that will be utilized. The Company’s preliminary evaluation indicates the provisions of ASU No. 2016-13 are expected to impact the Company’s Consolidated Financial Statements, in particular the level of the reserve for credit losses. The Company is continuing to evaluate the extent of the potential impact. In August 2017, the FASB issued ASU No. 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” This ASU’s objectives are to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities; and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. ASU No. 2017-12 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The Company currently does not designate any derivative financial instruments as formal hedging relationships, and therefore, does not utilize hedge accounting. However, the Company is currently evaluating this ASU to determine whether its provisions will enhance the Company’s ability to employ risk management strategies, while improving the transparency and understanding of those strategies for financial statement users. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents reported within the consolidated statements of condition that sum to the total of the same such amounts shown in the consolidated statements of cash flows: (dollars in thousands) June 30, December 31, Interest-Bearing Deposits in Other Banks $ 3,524 $ 3,421 Funds Sold 361,933 181,413 Cash and Due From Banks 312,303 263,017 Total Cash and Cash Equivalents $ 677,760 $ 447,851 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, gross unrealized gains and losses, and fair value of investment securities | The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities as of June 30, 2018 and December 31, 2017 were as follows: (dollars in thousands) Amortized Cost Gross Gross Fair Value June 30, 2018 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 446,766 $ 578 $ (2,632 ) $ 444,712 Debt Securities Issued by States and Political Subdivisions 587,160 6,655 (1,214 ) 592,601 Debt Securities Issued by Corporations 224,997 79 (1,299 ) 223,777 Mortgage-Backed Securities: Residential - Government Agencies 209,624 2,180 (1,108 ) 210,696 Residential - U.S. Government-Sponsored Enterprises 579,602 383 (20,117 ) 559,868 Commercial - Government Agencies 65,565 — (4,349 ) 61,216 Total Mortgage-Backed Securities 854,791 2,563 (25,574 ) 831,780 Total $ 2,113,714 $ 9,875 $ (30,719 ) $ 2,092,870 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 364,604 $ 1 $ (1,824 ) $ 362,781 Debt Securities Issued by States and Political Subdivisions 236,567 7,400 — 243,967 Debt Securities Issued by Corporations 104,955 — (2,977 ) 101,978 Mortgage-Backed Securities: Residential - Government Agencies 2,003,782 4,976 (70,085 ) 1,938,673 Residential - U.S. Government-Sponsored Enterprises 701,326 273 (26,872 ) 674,727 Commercial - Government Agencies 184,657 45 (6,331 ) 178,371 Total Mortgage-Backed Securities 2,889,765 5,294 (103,288 ) 2,791,771 Total $ 3,595,891 $ 12,695 $ (108,089 ) $ 3,500,497 December 31, 2017 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 424,912 $ 2,053 $ (1,035 ) $ 425,930 Debt Securities Issued by States and Political Subdivisions 618,167 9,894 (1,042 ) 627,019 Debt Securities Issued by Corporations 268,003 199 (2,091 ) 266,111 Mortgage-Backed Securities: Residential - Government Agencies 233,268 3,129 (1,037 ) 235,360 Residential - U.S. Government-Sponsored Enterprises 619,795 420 (10,403 ) 609,812 Commercial - Government Agencies 71,999 — (3,252 ) 68,747 Total Mortgage-Backed Securities 925,062 3,549 (14,692 ) 913,919 Total $ 2,236,144 $ 15,695 $ (18,860 ) $ 2,232,979 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 375,074 $ 18 $ (1,451 ) $ 373,641 Debt Securities Issued by States and Political Subdivisions 238,504 9,125 — 247,629 Debt Securities Issued by Corporations 119,635 123 (1,591 ) 118,167 Mortgage-Backed Securities: Residential - Government Agencies 2,229,985 9,975 (37,047 ) 2,202,913 Residential - U.S. Government-Sponsored Enterprises 763,312 911 (11,255 ) 752,968 Commercial - Government Agencies 201,660 797 (3,654 ) 198,803 Total Mortgage-Backed Securities 3,194,957 11,683 (51,956 ) 3,154,684 Total $ 3,928,170 $ 20,949 $ (54,998 ) $ 3,894,121 |
Analysis of the contractual maturities of investment securities | The table below presents an analysis of the contractual maturities of the Company’s investment securities as of June 30, 2018 . Debt securities issued by government agencies (Small Business Administration securities) and mortgage-backed securities are disclosed separately in the table below as these investment securities may prepay prior to their scheduled contractual maturity dates. (dollars in thousands) Amortized Cost Fair Value Available-for-Sale: Due in One Year or Less $ 46,250 $ 46,201 Due After One Year Through Five Years 628,271 628,659 Due After Five Years Through Ten Years 115,193 118,197 Due After Ten Years 22,994 23,856 812,708 816,913 Debt Securities Issued by Government Agencies 446,215 444,177 Mortgage-Backed Securities: Residential - Government Agencies 209,624 210,696 Residential - U.S. Government-Sponsored Enterprises 579,602 559,868 Commercial - Government Agencies 65,565 61,216 Total Mortgage-Backed Securities 854,791 831,780 Total $ 2,113,714 $ 2,092,870 Held-to-Maturity: Due in One Year or Less $ 244,843 $ 244,173 Due After One Year Through Five Years 209,721 210,339 Due After Five Years Through Ten Years 234,444 236,128 Due After Ten Years 17,118 18,086 706,126 708,726 Mortgage-Backed Securities: Residential - Government Agencies 2,003,782 1,938,673 Residential - U.S. Government-Sponsored Enterprises 701,326 674,727 Commercial - Government Agencies 184,657 178,371 Total Mortgage-Backed Securities 2,889,765 2,791,771 Total $ 3,595,891 $ 3,500,497 |
Schedule of gains (losses) on sale of investment securities | The table below presents the gains and losses from the sales of investment securities for the three and six months ended June 30, 2018 and 2017 . Three Months Ended Six Months Ended (dollars in thousands) 2018 2017 2018 2017 Gross Gains on Sales of Investment Securities $ — $ — $ — $ 12,467 Gross Losses on Sales of Investment Securities (1,702 ) (520 ) (2,368 ) (854 ) Net Gains (Losses) on Sales of Investment Securities $ (1,702 ) $ (520 ) $ (2,368 ) $ 11,613 |
Schedule of investment securities in an unrealized loss position | The Company’s gross unrealized losses and the related fair value of investment securities, aggregated by investment category and length of time in a continuous unrealized loss position, were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2018 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 230,073 $ (1,367 ) $ 142,480 $ (1,265 ) $ 372,553 $ (2,632 ) Debt Securities Issued by States and Political Subdivisions 199,140 (1,207 ) 677 (7 ) 199,817 (1,214 ) Debt Securities Issued by Corporations 24,725 (275 ) 163,972 (1,024 ) 188,697 (1,299 ) Mortgage-Backed Securities: Residential - Government Agencies 8,510 (71 ) 18,042 (1,037 ) 26,552 (1,108 ) Residential - U.S. Government-Sponsored Enterprises 344,981 (10,255 ) 191,811 (9,862 ) 536,792 (20,117 ) Commercial - Government Agencies — — 61,216 (4,349 ) 61,216 (4,349 ) Total Mortgage-Backed Securities 353,491 (10,326 ) 271,069 (15,248 ) 624,560 (25,574 ) Total $ 807,429 $ (13,175 ) $ 578,198 $ (17,544 ) $ 1,385,627 $ (30,719 ) Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 273,578 $ (826 ) $ 69,214 $ (998 ) $ 342,792 $ (1,824 ) Debt Securities Issued by Corporations 54,449 (1,000 ) 47,529 (1,977 ) 101,978 (2,977 ) Mortgage-Backed Securities: Residential - Government Agencies 988,147 (31,731 ) 684,927 (38,354 ) 1,673,074 (70,085 ) Residential - U.S. Government-Sponsored Enterprises 364,248 (11,698 ) 304,212 (15,174 ) 668,460 (26,872 ) Commercial - Government Agencies 95,460 (1,154 ) 76,595 (5,177 ) 172,055 (6,331 ) Total Mortgage-Backed Securities 1,447,855 (44,583 ) 1,065,734 (58,705 ) 2,513,589 (103,288 ) Total $ 1,775,882 $ (46,409 ) $ 1,182,477 $ (61,680 ) $ 2,958,359 $ (108,089 ) December 31, 2017 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 103,842 $ (599 ) $ 132,071 $ (436 ) $ 235,913 $ (1,035 ) Debt Securities Issued by States and Political Subdivisions 172,343 (1,032 ) 734 (10 ) 173,077 (1,042 ) Debt Securities Issued by Corporations 12,985 (15 ) 192,927 (2,076 ) 205,912 (2,091 ) Mortgage-Backed Securities: Residential - Government Agencies 11,035 (4 ) 10,618 (1,033 ) 21,653 (1,037 ) Residential - U.S. Government-Sponsored Enterprises 429,342 (5,720 ) 150,887 (4,683 ) 580,229 (10,403 ) Commercial - Government Agencies — — 68,747 (3,252 ) 68,747 (3,252 ) Total Mortgage-Backed Securities 440,377 (5,724 ) 230,252 (8,968 ) 670,629 (14,692 ) Total $ 729,547 $ (7,370 ) $ 555,984 $ (11,490 ) $ 1,285,531 $ (18,860 ) Held-to-Maturity: Debt Securities Issued by the U.S. Treasury $ 254,283 $ (532 ) $ 89,391 $ (919 ) $ 343,674 $ (1,451 ) Debt Securities Issued by Corporations 25,490 (110 ) 58,869 (1,481 ) 84,359 (1,591 ) Mortgage-Backed Securities: Residential - Government Agencies 1,030,472 (12,262 ) 704,545 (24,785 ) 1,735,017 (37,047 ) Residential - U.S. Government-Sponsored Enterprises 293,530 (3,106 ) 339,232 (8,149 ) 632,762 (11,255 ) Commercial - Government Agencies 497 (5 ) 82,288 (3,649 ) 82,785 (3,654 ) Total Mortgage-Backed Securities 1,324,499 (15,373 ) 1,126,065 (36,583 ) 2,450,564 (51,956 ) Total $ 1,604,272 $ (16,015 ) $ 1,274,325 $ (38,983 ) $ 2,878,597 $ (54,998 ) |
Schedule of interest income from taxable and non-taxable investment securities | Interest income from taxable and non-taxable investment securities for the three and six months ended June 30, 2018 and 2017 were as follows: Three Months Ended Six Months Ended (dollars in thousands) 2018 2017 2018 2017 Taxable $ 28,405 $ 26,741 $ 57,076 $ 52,508 Non-Taxable 4,686 5,012 9,452 10,035 Total Interest Income from Investment Securities $ 33,091 $ 31,753 $ 66,528 $ 62,543 |
Schedule of carrying value of company's Federal Home Loan Bank and Federal Reserve Bank | As of June 30, 2018 and December 31, 2017 , the carrying value of the Company’s Federal Home Loan Bank of Des Moines stock and Federal Reserve Bank stock was as follows: (dollars in thousands) June 30, December 31, Federal Home Loan Bank Stock $ 19,000 $ 20,000 Federal Reserve Bank Stock 20,796 20,645 Total $ 39,796 $ 40,645 |
Loans and Leases and the Allo27
Loans and Leases and the Allowance for Loan and Lease Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loans and Leases and Allowance for Loan and Lease Losses [Abstract] | |
Schedule of Loan and Lease Portfolio | The Company’s loan and lease portfolio was comprised of the following as of June 30, 2018 and December 31, 2017 : (dollars in thousands) June 30, December 31, Commercial Commercial and Industrial $ 1,282,967 $ 1,279,347 Commercial Mortgage 2,169,357 2,103,967 Construction 185,350 202,253 Lease Financing 178,598 180,931 Total Commercial 3,816,272 3,766,498 Consumer Residential Mortgage 3,548,444 3,466,773 Home Equity 1,622,314 1,585,455 Automobile 592,705 528,474 Other 1 473,588 449,747 Total Consumer 6,237,051 6,030,449 Total Loans and Leases $ 10,053,323 $ 9,796,947 1 Comprised of other revolving credit, installment, and lease financing. |
Schedule of Portfolio Segment and Balance in Allowance Disaggregated on the Basis of Impairment Measurement Method | The following presents by portfolio segment, the activity in the Allowance for the three and six months ended June 30, 2018 and 2017 . The following also presents by portfolio segment, the balance in the Allowance disaggregated on the basis of the Company’s impairment measurement method and the related recorded investment in loans and leases as of June 30, 2018 and 2017 . (dollars in thousands) Commercial Consumer Total Three Months Ended June 30, 2018 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 64,110 $ 43,828 $ 107,938 Loans and Leases Charged-Off (485 ) (5,176 ) (5,661 ) Recoveries on Loans and Leases Previously Charged-Off 366 2,045 2,411 Net Loans and Leases Recovered (Charged-Off) (119 ) (3,131 ) (3,250 ) Provision for Credit Losses (279 ) 3,779 3,500 Balance at End of Period $ 63,712 $ 44,476 $ 108,188 Six Months Ended June 30, 2018 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 65,822 $ 41,524 $ 107,346 Loans and Leases Charged-Off (691 ) (10,958 ) (11,649 ) Recoveries on Loans and Leases Previously Charged-Off 694 4,172 4,866 Net Loans and Leases Recovered (Charged-Off) 3 (6,786 ) (6,783 ) Provision for Credit Losses (2,113 ) 9,738 7,625 Balance at End of Period $ 63,712 $ 44,476 $ 108,188 As of June 30, 2018 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 100 $ 3,827 $ 3,927 Collectively Evaluated for Impairment 63,612 40,649 104,261 Total 63,712 44,476 108,188 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 12,184 $ 41,981 $ 54,165 Collectively Evaluated for Impairment 3,804,088 6,195,070 9,999,158 Total $ 3,816,272 $ 6,237,051 $ 10,053,323 Three Months Ended June 30, 2017 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 66,893 $ 38,171 $ 105,064 Loans and Leases Charged-Off (124 ) (5,363 ) (5,487 ) Recoveries on Loans and Leases Previously Charged-Off 266 2,260 2,526 Net Loans and Leases Recovered (Charged-Off) 142 (3,103 ) (2,961 ) Provision for Credit Losses (853 ) 5,103 4,250 Balance at End of Period $ 66,182 $ 40,171 $ 106,353 Six Months Ended June 30, 2017 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 65,680 $ 38,593 $ 104,273 Loans and Leases Charged-Off (298 ) (10,893 ) (11,191 ) Recoveries on Loans and Leases Previously Charged-Off 602 4,019 4,621 Net Loans and Leases Recovered (Charged-Off) 304 (6,874 ) (6,570 ) Provision for Credit Losses 198 8,452 8,650 Balance at End of Period $ 66,182 $ 40,171 $ 106,353 As of June 30, 2017 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 45 $ 3,792 $ 3,837 Collectively Evaluated for Impairment 66,137 36,379 102,516 Total $ 66,182 $ 40,171 $ 106,353 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 20,197 $ 38,528 $ 58,725 Collectively Evaluated for Impairment 3,684,715 5,644,173 9,328,888 Total $ 3,704,912 $ 5,682,701 $ 9,387,613 |
Schedule of Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | The following presents by class and by credit quality indicator, the recorded investment in the Company’s loans and leases as of June 30, 2018 and December 31, 2017 . June 30, 2018 (dollars in thousands) Commercial and Industrial Commercial Mortgage Construction Lease Financing Total Commercial Pass $ 1,239,719 $ 2,116,370 $ 182,092 $ 177,800 $ 3,715,981 Special Mention 31,290 37,903 — 473 69,666 Classified 11,958 15,084 3,258 325 30,625 Total $ 1,282,967 $ 2,169,357 $ 185,350 $ 178,598 $ 3,816,272 (dollars in thousands) Residential Mortgage Home Equity Automobile Other 1 Total Consumer Pass $ 3,541,722 $ 1,617,621 $ 592,030 $ 472,918 $ 6,224,291 Classified 6,722 4,693 675 670 12,760 Total $ 3,548,444 $ 1,622,314 $ 592,705 $ 473,588 $ 6,237,051 Total Recorded Investment in Loans and Leases $ 10,053,323 December 31, 2017 (dollars in thousands) Commercial and Industrial Commercial Mortgage Construction Lease Financing Total Commercial Pass $ 1,234,738 $ 2,046,745 $ 198,926 $ 180,522 $ 3,660,931 Special Mention 15,394 35,762 6 11 51,173 Classified 29,215 21,460 3,321 398 54,394 Total $ 1,279,347 $ 2,103,967 $ 202,253 $ 180,931 $ 3,766,498 (dollars in thousands) Residential Mortgage Home Equity Automobile Other 1 Total Consumer Pass $ 3,457,531 $ 1,580,917 $ 527,587 $ 449,008 $ 6,015,043 Classified 9,242 4,538 887 739 15,406 Total $ 3,466,773 $ 1,585,455 $ 528,474 $ 449,747 $ 6,030,449 Total Recorded Investment in Loans and Leases $ 9,796,947 1 Comprised of other revolving credit, installment, and lease financing. |
Schedule of Aging Analysis by Class of Loan and Lease Portfolio | The following presents by class, an aging analysis of the Company’s loan and lease portfolio as of June 30, 2018 and December 31, 2017 . (dollars in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due Past Due 90 Days or More Non-Accrual Total Past Due and Non-Accrual Current Total Loans and Leases Non-Accrual Loans and Leases that are Current 2 As of June 30, 2018 Commercial Commercial and Industrial $ 551 $ 696 $ 2 $ 917 $ 2,166 $ 1,280,801 $ 1,282,967 $ 716 Commercial Mortgage 491 — 5,680 659 $ 6,830 $ 2,162,527 2,169,357 434 Construction 707 — — — 707 184,643 185,350 — Lease Financing — — — — — 178,598 178,598 — Total Commercial 1,749 696 5,682 1,576 9,703 3,806,569 3,816,272 1,150 Consumer Residential Mortgage 2,028 3,230 2,281 6,722 14,261 3,534,183 3,548,444 455 Home Equity 4,240 1,141 3,016 3,933 12,330 1,609,984 1,622,314 1,825 Automobile 10,809 1,976 674 — 13,459 579,246 592,705 — Other 1 2,794 1,401 1,660 — 5,855 467,733 473,588 — Total Consumer 19,871 7,748 7,631 10,655 45,905 6,191,146 6,237,051 2,280 Total $ 21,620 $ 8,444 $ 13,313 $ 12,231 $ 55,608 $ 9,997,715 $ 10,053,323 $ 3,430 As of December 31, 2017 Commercial Commercial and Industrial $ 4,196 $ 641 $ — $ 448 $ 5,285 $ 1,274,062 $ 1,279,347 $ 313 Commercial Mortgage 187 404 — 1,398 1,989 2,101,978 2,103,967 465 Construction — — — — — 202,253 202,253 — Lease Financing — — — — — 180,931 180,931 — Total Commercial 4,383 1,045 — 1,846 7,274 3,759,224 3,766,498 778 Consumer Residential Mortgage 7,815 2,008 2,703 9,243 21,769 3,445,004 3,466,773 806 Home Equity 2,532 2,736 1,624 3,991 10,883 1,574,572 1,585,455 1,312 Automobile 11,728 2,232 886 — 14,846 513,628 528,474 — Other 1 3,007 1,639 1,934 — 6,580 443,167 449,747 — Total Consumer 25,082 8,615 7,147 13,234 54,078 5,976,371 6,030,449 2,118 Total $ 29,465 $ 9,660 $ 7,147 $ 15,080 $ 61,352 $ 9,735,595 $ 9,796,947 $ 2,896 1 Comprised of other revolving credit, installment, and lease financing. 2 Represents non-accrual loans that are not past due 30 days or more; however, full payment of principal and interest is still not expected. |
Schedule of Information Related to Impaired Loans | The following presents by class, information related to impaired loans as of June 30, 2018 and December 31, 2017 . (dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance for Loan Losses June 30, 2018 Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 6,097 $ 9,639 $ — Commercial Mortgage 3,203 6,703 — Construction 1,373 1,373 — Total Commercial 10,673 17,715 — Total Impaired Loans with No Related Allowance Recorded $ 10,673 $ 17,715 $ — Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 1,288 $ 1,900 $ 78 Commercial Mortgage 223 223 22 Total Commercial 1,511 2,123 100 Consumer Residential Mortgage 20,619 25,362 3,110 Home Equity 2,488 2,488 276 Automobile 16,010 16,010 328 Other 1 2,864 2,864 113 Total Consumer 41,981 46,724 3,827 Total Impaired Loans with an Allowance Recorded $ 43,492 $ 48,847 $ 3,927 Impaired Loans: Commercial $ 12,184 $ 19,838 $ 100 Consumer 41,981 46,724 3,827 Total Impaired Loans $ 54,165 $ 66,562 $ 3,927 December 31, 2017 Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 8,094 $ 15,747 $ — Commercial Mortgage 8,696 12,196 — Construction 1,415 1,415 — Total Commercial 18,205 29,358 — Total Impaired Loans with No Related Allowance Recorded $ 18,205 $ 29,358 $ — Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 811 $ 811 $ 21 Commercial Mortgage 1,200 1,200 120 Total Commercial 2,011 2,011 141 Consumer Residential Mortgage 21,581 26,324 3,118 Home Equity 1,965 1,965 276 Automobile 14,811 14,811 305 Other 1 2,645 2,645 76 Total Consumer 41,002 45,745 3,775 Total Impaired Loans with an Allowance Recorded $ 43,013 $ 47,756 $ 3,916 Impaired Loans: Commercial $ 20,216 $ 31,369 $ 141 Consumer 41,002 45,745 3,775 Total Impaired Loans $ 61,218 $ 77,114 $ 3,916 1 Comprised of other revolving credit and installment financing. |
Schedule of the Average Recorded Investment and Interest Income Recognized on Impaired Loans | The following presents by class, information related to the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2018 and 2017 . Three Months Ended Three Months Ended (dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 7,540 $ 83 $ 8,717 $ 61 Commercial Mortgage 6,351 30 9,369 77 Construction 1,386 22 1,477 24 Total Commercial 15,277 135 19,563 162 Total Impaired Loans with No Related Allowance Recorded $ 15,277 $ 135 $ 19,563 $ 162 Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 1,128 $ 10 $ 657 $ 9 Commercial Mortgage 236 3 331 4 Total Commercial 1,364 13 988 13 Consumer Residential Mortgage 20,509 215 23,148 214 Home Equity 2,221 26 1,621 20 Automobile 15,819 278 11,547 195 Other 1 2,806 56 2,663 57 Total Consumer 41,355 575 38,979 486 Total Impaired Loans with an Allowance Recorded $ 42,719 $ 588 $ 39,967 $ 499 Impaired Loans: Commercial $ 16,641 $ 148 $ 20,551 $ 175 Consumer 41,355 575 38,979 486 Total Impaired Loans $ 57,996 $ 723 $ 59,530 $ 661 Six Months Ended Six Months Ended (dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 7,724 $ 196 $ 8,996 $ 142 Commercial Mortgage 7,132 117 9,370 162 Construction 1,396 45 1,489 48 Total Commercial 16,252 358 19,855 352 Total Impaired Loans with No Related Allowance Recorded $ 16,252 $ 358 $ 19,855 $ 352 Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 1,022 $ 20 $ 693 $ 20 Commercial Mortgage 557 6 342 8 Total Commercial 1,579 26 1,035 28 Consumer Residential Mortgage 20,866 427 23,974 426 Home Equity 2,135 51 1,586 37 Automobile 15,483 539 10,918 364 Other 1 2,752 108 2,550 110 Total Consumer 41,236 1,125 39,028 937 Total Impaired Loans with an Allowance Recorded $ 42,815 $ 1,151 $ 40,063 $ 965 Impaired Loans: Commercial $ 17,831 $ 384 $ 20,890 $ 380 Consumer 41,236 1,125 39,028 937 Total Impaired Loans $ 59,067 $ 1,509 $ 59,918 $ 1,317 1 Comprised of other revolving credit and installment financing. |
Schedule of Loans Modified in a TDR and TDRs that Defaulted During the Period Within 12 mos of Modification Date | The following presents by class, information related to loans modified in a TDR during the three and six months ended June 30, 2018 and 2017 . Loans Modified as a TDR for the Loans Modified as a TDR for the Recorded Increase in Recorded Increase in Troubled Debt Restructurings Number of Investment Allowance Number of Investment Allowance (dollars in thousands) Contracts (as of period end) 1 (as of period end) Contracts (as of period end) 1 (as of period end) Commercial Commercial and Industrial 6 $ 712 $ 48 6 $ 4,191 $ 11 Commercial Mortgage — — — 1 700 — Total Commercial 6 712 48 7 4,891 11 Consumer Residential Mortgage 2 455 30 — — — Home Equity 3 545 — 1 4 4 Automobile 72 1,521 31 99 2,115 49 Other 2 63 468 14 40 304 8 Total Consumer 140 2,989 75 140 2,423 61 Total 146 $ 3,701 $ 123 147 $ 7,314 $ 72 Loans Modified as a TDR for the Loans Modified as a TDR for the Recorded Increase in Recorded Increase in Troubled Debt Restructurings Number of Investment Allowance Number of Investment Allowance (dollars in thousands) Contracts (as of period end) 1 (as of period end) Contracts (as of period end) 1 (as of period end) Commercial Commercial and Industrial 7 $ 1,233 $ 48 11 $ 7,235 $ 11 Commercial Mortgage — — — 2 1,096 — Total Commercial 7 1,233 48 13 8,331 11 Consumer Residential Mortgage 2 455 30 — — — Home Equity 3 545 — 1 239 4 Automobile 170 3,654 75 209 4,315 99 Other 2 138 967 28 114 891 24 Total Consumer 313 5,621 133 324 5,445 127 Total 320 $ 6,854 $ 181 337 $ 13,776 $ 138 1 The period end balances reflect all paydowns and charge-offs since the modification date. TDRs fully paid-off, charged-off, or foreclosed upon by period end are not included. 2 Comprised of other revolving credit and installment financing. The following presents by class, all loans modified in a TDR that defaulted during the three and six months ended June 30, 2018 and 2017 , and within twelve months of their modification date. A TDR is considered to be in default once it becomes 60 days or more past due following a modification. Three Months Ended Three Months Ended TDRs that Defaulted During the Period, Recorded Recorded Within Twelve Months of their Modification Date Number of Investment Number of Investment (dollars in thousands) Contracts (as of period end) 1 Contracts (as of period end) 1 Consumer Automobile 14 $ 289 12 $ 267 Other 2 21 167 18 137 Total Consumer 35 456 30 404 Total 35 $ 456 30 $ 404 Six Months Ended Six Months Ended TDRs that Defaulted During the Period, Recorded Recorded Within Twelve Months of their Modification Date Number of Investment Number of Investment (dollars in thousands) Contracts (as of period end) 1 Contracts (as of period end) 1 Commercial Commercial and Industrial — $ — 1 $ 49 Total Commercial — — 1 49 Consumer Home Equity 1 236 — — Automobile 32 606 17 390 Other 2 41 295 36 255 Total Consumer 74 1,137 53 645 Total 74 $ 1,137 54 $ 694 1 The period end balances reflect all paydowns and charge-offs since the modification date. TDRs fully paid-off, charged-off, or foreclosed upon by period end are not included. 2 Comprised of other revolving credit and installment financing. |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Analysis of mortgage servicing rights accounted for under the fair value measurement method | For the three and six months ended June 30, 2018 and 2017 , the change in the carrying value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows: Three Months Ended Six Months Ended (dollars in thousands) 2018 2017 2018 2017 Balance at Beginning of Period $ 1,404 $ 1,586 $ 1,454 $ 1,655 Change in Fair Value: Due to Payoffs (38 ) (38 ) (88 ) (107 ) Total Changes in Fair Value of Mortgage Servicing Rights (38 ) (38 ) (88 ) (107 ) Balance at End of Period $ 1,366 $ 1,548 $ 1,366 $ 1,548 |
Analysis of mortgage servicing rights accounted for under the amortization method | For the three and six months ended June 30, 2018 and 2017 , the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows: Three Months Ended Six Months Ended (dollars in thousands) 2018 2017 2018 2017 Balance at Beginning of Period $ 23,089 $ 22,705 $ 23,168 $ 22,008 Servicing Rights that Resulted From Asset Transfers 775 961 1,396 2,276 Amortization (647 ) (690 ) (1,347 ) (1,308 ) Valuation Allowance Provision — (53 ) — (53 ) Balance at End of Period $ 23,217 $ 22,923 $ 23,217 $ 22,923 Valuation Allowance: Balance at Beginning of Period $ — $ — $ — $ — Valuation Allowance Provision — (53 ) — (53 ) Balance at End of Period $ — $ (53 ) $ — $ (53 ) Fair Value of Mortgage Servicing Rights Accounted for Under the Amortization Method Beginning of Period $ 28,600 $ 25,946 $ 26,716 $ 25,148 End of Period $ 29,746 $ 25,479 $ 29,746 $ 25,479 |
Schedule of key data and assumptions used in estimating the fair value of mortgage servicing rights | The key data and assumptions used in estimating the fair value of the Company’s mortgage servicing rights as of June 30, 2018 and December 31, 2017 were as follows: June 30, December 31, 2017 Weighted-Average Constant Prepayment Rate 1 6.45 % 8.50 % Weighted-Average Life (in years) 8.13 7.09 Weighted-Average Note Rate 4.04 % 4.04 % Weighted-Average Discount Rate 2 9.76 % 8.87 % 1 Represents annualized loan prepayment rate assumption. 2 Derived from multiple interest rate scenarios that incorporate a spread to a market yield curve and market volatilities. |
Schedule of sensitivity analysis of the fair value of mortgage servicing rights | A sensitivity analysis of the Company’s fair value of mortgage servicing rights to changes in certain key assumptions as of June 30, 2018 and December 31, 2017 is presented in the following table. (dollars in thousands) June 30, December 31, Constant Prepayment Rate Decrease in fair value from 25 basis points (“bps”) adverse change $ (380 ) $ (332 ) Decrease in fair value from 50 bps adverse change (756 ) (657 ) Discount Rate Decrease in fair value from 25 bps adverse change (332 ) (289 ) Decrease in fair value from 50 bps adverse change (658 ) (572 ) |
Low Income Housing Tax Credit29
Low Income Housing Tax Credit Partnerships (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | As of June 30, 2018 , the expected payments for unfunded affordable housing commitments were as follows: (dollars in thousands) Amount 2018 $ 8,802 2019 4,126 2020 85 2021 45 2022 56 Thereafter 680 Total Unfunded Commitments $ 13,794 The following table presents tax credits and other tax benefits recognized and amortization expense related to affordable housing for the three and six months ended June 30, 2018 and 2017 . Three Months Ended Six Months Ended (dollars in thousands) 2018 2017 2018 2017 Effective Yield Method Tax credits and other tax benefits recognized $ 3,380 $ 3,439 $ 6,812 $ 6,869 Amortization Expense in Provision for Income Taxes 2,078 2,137 4,155 4,298 Proportional Amortization Method Tax credits and other tax benefits recognized $ 410 $ 440 $ 820 $ 761 Amortization Expense in Provision for Income Taxes 333 358 666 611 |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Offsetting [Abstract] | |
Schedule of Repurchase Agreements - by maturity date and collateral type | The following table presents the remaining contractual maturities of the Company’s repurchase agreements as of June 30, 2018 and December 31, 2017 , disaggregated by the class of collateral pledged. Remaining Contractual Maturity of Repurchase Agreements (dollars in thousands) Up to 91-365 days 1-3 Years After Total June 30, 2018 Class of Collateral Pledged: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ 677 $ — $ — $ 677 Debt Securities Issued by States and Political Subdivisions 1,000 1,690 913 — 3,603 Mortgage-Backed Securities: Residential - Government Agencies — — 203,361 200,707 404,068 Residential - U.S. Government-Sponsored Enterprises — 826 70,726 24,293 95,845 Total $ 1,000 $ 3,193 $ 275,000 $ 225,000 $ 504,193 December 31, 2017 Class of Collateral Pledged: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ — $ 110,392 $ 202,484 $ 312,876 Debt Securities Issued by States and Political Subdivisions 1,200 2,590 — — 3,790 Mortgage-Backed Securities: Residential - Government Agencies 1,503 — 18,793 80,960 101,256 Residential - U.S. Government-Sponsored Enterprises — — 20,815 66,556 87,371 Total $ 2,703 $ 2,590 $ 150,000 $ 350,000 $ 505,293 |
Schedule of assets and liabilities subject to an enforceable master netting arrangement | The following table presents the assets and liabilities subject to an enforceable master netting arrangement, or repurchase agreements, as of June 30, 2018 and December 31, 2017 . The swap agreements the Company has with our commercial banking customers are not subject to an enforceable master netting arrangement, and therefore, are excluded from this table. As previously mentioned, centrally cleared swap agreements between the Company and institutional counterparties are also excluded from this table. (i) (ii) (iii) = (i)-(ii) (iv) (v) = (iii)-(iv) Gross Amounts Recognized in the Statements of Condition Gross Amounts Offset in the Statements of Condition Net Amounts Presented in the Statements of Condition Gross Amounts Not Offset in the Statements of Condition (dollars in thousands) Netting Adjustments per Master Netting Arrangements Fair Value of Collateral Pledged/Received 1 Net Amount June 30, 2018 Assets: Interest Rate Swap Agreements: Institutional Counterparties $ 12,569 $ — $ 12,569 $ 1,391 $ 1,522 $ 9,656 Liabilities: Interest Rate Swap Agreements: Institutional Counterparties 1,391 — 1,391 1,391 — — Repurchase Agreements: Private Institutions 500,000 — 500,000 — 500,000 — Government Entities 4,193 — 4,193 — 4,193 — $ 504,193 $ — $ 504,193 $ — $ 504,193 $ — December 31, 2017 Assets: Interest Rate Swap Agreements: Institutional Counterparties $ 5,453 $ — $ 5,453 $ 4,017 $ — $ 1,436 Liabilities: Interest Rate Swap Agreements: Institutional Counterparties 4,017 — 4,017 4,017 — — Repurchase Agreements: Private Institutions 500,000 — 500,000 — 500,000 — Government Entities 5,293 — 5,293 — 5,293 — $ 505,293 $ — $ 505,293 $ — $ 505,293 $ — 1 The application of collateral cannot reduce the net amount below zero. Therefore, excess collateral is not reflected in this table. For swap agreements with institutional counterparties, there was no collateral pledged to institutional counterparties as of June 30, 2018 . The fair value of investment securities pledged to the institutional counterparties was $3.5 million as of December 31, 2017 . For repurchase agreements with private institutions, the fair value of investment securities pledged was $539.4 million and $563.3 million as of June 30, 2018 and December 31, 2017 , respectively. For repurchase agreements with government entities, the fair value of investment securities pledged was $6.9 million as of June 30, 2018 and December 31, 2017 . |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Components of other comprehensive income | The following table presents the components of other comprehensive income (loss) for the three and six months ended June 30, 2018 and 2017 : (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2018 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ (4,622 ) $ (1,223 ) $ (3,399 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 578 153 425 Net Unrealized Gains (Losses) on Investment Securities (4,044 ) (1,070 ) (2,974 ) Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 436 116 320 Amortization of Prior Service Credit (142 ) (38 ) (104 ) Defined Benefit Plans, Net 294 78 216 Other Comprehensive Income (Loss) $ (3,750 ) $ (992 ) $ (2,758 ) Three Months Ended June 30, 2017 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ 4,642 $ 1,833 $ 2,809 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 491 194 297 Net Unrealized Gains (Losses) on Investment Securities 5,133 2,027 3,106 Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 322 127 195 Amortization of Prior Service Credit (80 ) (32 ) (48 ) Defined Benefit Plans, Net 242 95 147 Other Comprehensive Income (Loss) $ 5,375 $ 2,122 $ 3,253 Six Months Ended June 30, 2018 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ (17,679 ) $ (4,675 ) $ (13,004 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 1,237 328 909 Net Unrealized Gains (Losses) on Investment Securities (16,442 ) (4,347 ) (12,095 ) Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 872 232 640 Amortization of Prior Service Credit (284 ) (76 ) (208 ) Defined Benefit Plans, Net 588 156 432 Other Comprehensive Income (Loss) $ (15,854 ) $ (4,191 ) $ (11,663 ) Six Months Ended June 30, 2017 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ 12,222 $ 4,824 $ 7,398 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 995 393 602 Net Unrealized Gains (Losses) on Investment Securities 13,217 5,217 8,000 Defined Benefit Plans: Amortization of Net Actuarial Losses (Gains) 645 255 390 Amortization of Prior Service Credit (161 ) (64 ) (97 ) Defined Benefit Plans, Net 484 191 293 Other Comprehensive Income (Loss) $ 13,701 $ 5,408 $ 8,293 1 The amount relates to the amortization/accretion of unrealized net gains and losses related to the Company’s reclassification of available-for-sale investment securities to the held-to-maturity category. The unrealized net gains/losses will be amortized/accreted over the remaining life of the investment securities as an adjustment of yield. |
Schedule of accumulated other comprehensive income (loss) | The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, for the three and six months ended June 30, 2018 and 2017 : (dollars in thousands) Investment Securities-Available-for-Sale Investment Securities-Held-to-Maturity Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) Three Months Ended June 30, 2018 Balance at Beginning of Period $ (11,932 ) $ (5,697 ) $ (33,468 ) $ (51,097 ) Other Comprehensive Income (Loss) Before Reclassifications (3,399 ) — — (3,399 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 425 216 641 Total Other Comprehensive Income (Loss) (3,399 ) 425 216 (2,758 ) Balance at End of Period $ (15,331 ) $ (5,272 ) $ (33,252 ) $ (53,855 ) Three Months Ended June 30, 2017 Balance at Beginning of Period $ 5,859 $ (5,979 ) $ (28,746 ) $ (28,866 ) Other Comprehensive Income (Loss) Before Reclassifications 2,809 — — 2,809 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 297 147 444 Total Other Comprehensive Income (Loss) 2,809 297 147 3,253 Balance at End of Period $ 8,668 $ (5,682 ) $ (28,599 ) $ (25,613 ) Six Months Ended June 30, 2018 Balance at Beginning of Period $ (1,915 ) $ (5,085 ) $ (27,715 ) $ (34,715 ) Other Comprehensive Income (Loss) Before Reclassifications (13,004 ) — — (13,004 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 909 432 1,341 Total Other Comprehensive Income (Loss) (13,004 ) 909 432 (11,663 ) Reclassification of the Income Tax Effects of the (412 ) (1,096 ) (5,969 ) (7,477 ) Balance at End of Period $ (15,331 ) $ (5,272 ) $ (33,252 ) $ (53,855 ) Six Months Ended June 30, 2017 Balance at Beginning of Period $ 1,270 $ (6,284 ) $ (28,892 ) $ (33,906 ) Other Comprehensive Income (Loss) Before Reclassifications 7,398 — — 7,398 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 602 293 895 Total Other Comprehensive Income (Loss) 7,398 602 293 8,293 Balance at End of Period $ 8,668 $ (5,682 ) $ (28,599 ) $ (25,613 ) |
Reclassification out of accumulated other comprehensive income | The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2018 and 2017 : Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) 1 Affected Line Item in the Statement Where Net Income Is Presented Three Months Ended June 30, (dollars in thousands) 2018 2017 Amortization of Unrealized Holding Gains (Losses) on Investment Securities Held-to-Maturity $ (578 ) $ (491 ) Interest Income 153 194 Provision for Income Tax (425 ) (297 ) Net of Tax Amortization of Defined Benefit Plan Items Prior Service Credit 2 142 80 Net Actuarial Losses 2 (436 ) (322 ) (294 ) (242 ) Total Before Tax 78 95 Provision for Income Tax (216 ) (147 ) Net of Tax Total Reclassifications for the Period $ (641 ) $ (444 ) Net of Tax Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) 1 Affected Line Item in the Statement Where Net Income Is Presented Six Months Ended June 30, (dollars in thousands) 2018 2017 Amortization of Unrealized Holding Gains (Losses) on Investment Securities Held-to-Maturity $ (1,237 ) $ (995 ) Interest Income 328 393 Provision for Income Tax (909 ) (602 ) Net of Tax Amortization of Defined Benefit Plan Items Prior Service Credit 2 284 161 Net Actuarial Losses 2 (872 ) (645 ) (588 ) (484 ) Total Before Tax 156 191 Provision for Income Tax (432 ) (293 ) Net of Tax Total Reclassifications for the Period $ (1,341 ) $ (895 ) Net of Tax 1 Amounts in parentheses indicate reductions to net income. 2 These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost and are included in Other Noninterest Expense on the consolidated statements of income (see Note 11 Pension Plans and Postretirement Benefit Plan for additional details). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of the weighted average number of common shares outstanding for computing diluted earnings per share and antidilutive stock options and restricted stock outstanding | The following is a reconciliation of the weighted average number of common shares outstanding for computing diluted earnings per share and antidilutive stock options and restricted stock outstanding for the three and six months ended June 30, 2018 and 2017 : Three Months Ended Six Months Ended 2018 2017 2018 2017 Denominator for Basic Earnings Per Share 41,884,221 42,353,976 41,960,743 42,379,730 Dilutive Effect of Equity Based Awards 267,979 304,909 292,157 324,280 Denominator for Diluted Earnings Per Share 42,152,200 42,658,885 42,252,900 42,704,010 Antidilutive Stock Options and Restricted Stock Outstanding 1,293 7,127 1,293 — |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Selected Business Segment Financial Information | Selected business segment financial information as of and for the three and six months ended June 30, 2018 and 2017 were as follows: (dollars in thousands) Retail Banking Commercial Banking Investment Services and Private Banking Treasury and Other Consolidated Total Three Months Ended June 30, 2018 Net Interest Income $ 65,683 $ 44,010 $ 10,526 $ 277 $ 120,496 Provision for Credit Losses 3,445 (194 ) — 249 3,500 Net Interest Income After Provision for Credit Losses 62,238 44,204 10,526 28 116,996 Noninterest Income 19,598 5,512 14,745 1,443 41,298 Noninterest Expense (51,939 ) (19,858 ) (16,400 ) (2,594 ) (90,791 ) Income Before Provision for Income Taxes 29,897 29,858 8,871 (1,123 ) 67,503 Provision for Income Taxes (7,473 ) (6,740 ) (2,338 ) 3,766 (12,785 ) Net Income $ 22,424 $ 23,118 $ 6,533 $ 2,643 $ 54,718 Total Assets as of June 30, 2018 $ 6,142,457 $ 3,799,535 $ 342,464 $ 6,839,706 $ 17,124,162 Three Months Ended June 30, 2017 Net Interest Income $ 66,348 $ 41,737 $ 6,714 $ (2,520 ) $ 112,279 Provision for Credit Losses 3,099 (132 ) (6 ) 1,289 4,250 Net Interest Income After Provision for Credit Losses 63,249 41,869 6,720 (3,809 ) 108,029 Noninterest Income 21,920 5,876 15,247 2,193 45,236 Noninterest Expense (52,018 ) (18,407 ) (15,295 ) (2,469 ) (88,189 ) Income Before Provision for Income Taxes 33,151 29,338 6,672 (4,085 ) 65,076 Provision for Income Taxes (11,741 ) (10,325 ) (2,469 ) 4,121 (20,414 ) Net Income $ 21,410 $ 19,013 $ 4,203 $ 36 $ 44,662 Total Assets as of June 30, 2017 $ 5,626,767 $ 3,658,867 $ 307,529 $ 7,388,129 $ 16,981,292 Six Months Ended June 30, 2018 Net Interest Income $ 130,080 $ 86,908 $ 20,413 $ 2,051 $ 239,452 Provision for Credit Losses 7,188 (345 ) (60 ) 842 7,625 Net Interest Income After Provision for Credit Losses 122,892 87,253 20,473 1,209 231,827 Noninterest Income 38,851 11,154 28,415 6,913 85,333 Noninterest Expense (106,538 ) (40,190 ) (32,607 ) (5,840 ) (185,175 ) Income Before Provision for Income Taxes 55,205 58,217 16,281 2,282 131,985 Provision for Income Taxes (13,764 ) (13,564 ) (4,292 ) 8,393 (23,227 ) Net Income $ 41,441 $ 44,653 $ 11,989 $ 10,675 $ 108,758 Total Assets as of June 30, 2018 $ 6,142,457 $ 3,799,535 $ 342,464 $ 6,839,706 $ 17,124,162 Six Months Ended June 30, 2017 Net Interest Income $ 131,505 $ 83,668 $ 13,364 $ (6,386 ) $ 222,151 Provision for Credit Losses 6,900 (320 ) (11 ) 2,081 8,650 Net Interest Income After Provision for Credit Losses 124,605 83,988 13,375 (8,467 ) 213,501 Noninterest Income 42,845 11,314 29,796 17,197 101,152 Noninterest Expense (104,278 ) (36,762 ) (30,766 ) (4,951 ) (176,757 ) Income Before Provision for Income Taxes 63,172 58,540 12,405 3,779 137,896 Provision for Income Taxes (22,415 ) (20,581 ) (4,590 ) 5,528 (42,058 ) Net Income $ 40,757 $ 37,959 $ 7,815 $ 9,307 $ 95,838 Total Assets as of June 30, 2017 $ 5,626,767 $ 3,658,867 $ 307,529 $ 7,388,129 $ 16,981,292 |
Pension Plans and Postretirem34
Pension Plans and Postretirement Benefit Plan (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit cost | Components of net periodic benefit cost for the Company’s pension plans and the postretirement benefit plan are presented in the following table for the three and six months ended June 30, 2018 and 2017 . Pension Benefits Postretirement Benefits (dollars in thousands) 2018 2017 2018 2017 Three Months Ended June 30, Service Cost $ — $ — $ 115 $ 123 Interest Cost 1,041 1,161 236 272 Expected Return on Plan Assets (1,282 ) (1,238 ) — — Amortization of: Prior Service Credit — — (142 ) (80 ) Net Actuarial Losses (Gains) 498 432 (62 ) (110 ) Net Periodic Benefit Cost $ 257 $ 355 $ 147 $ 205 Six Months Ended June 30, Service Cost $ — $ — $ 230 $ 246 Interest Cost 2,082 2,322 471 544 Expected Return on Plan Assets (2,564 ) (2,476 ) — — Amortization of: Prior Service Credit — — (284 ) (161 ) Net Actuarial Losses (Gains) 996 865 (124 ) (220 ) Net Periodic Benefit Cost $ 514 $ 711 $ 293 $ 409 |
Derivative Financial Instrume35
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of the notional amount and fair value of the derivative financial instruments | The notional amount and fair value of the Company’s derivative financial instruments as of June 30, 2018 and December 31, 2017 were as follows: June 30, 2018 December 31, 2017 (dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Interest Rate Lock Commitments $ 31,298 $ 707 $ 35,422 $ 789 Forward Commitments 33,336 (115 ) 45,143 (56 ) Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps 453,275 (11,494 ) 374,670 (1,331 ) Pay Fixed/Receive Variable Swaps 453,275 11,178 374,670 1,436 Foreign Exchange Contracts 48,305 (241 ) 54,332 (13 ) Conversion Rate Swap Agreement 81,058 (1,000 ) 70,571 — |
Derivative financial instruments, their fair values, and balance sheet location | The following table presents the Company’s derivative financial instruments, their fair values, and their location in the consolidated statements of condition as of June 30, 2018 and December 31, 2017 : Derivative Financial Instruments June 30, 2018 December 31, 2017 Not Designated as Hedging Instruments 1 Asset Liability Asset Liability (dollars in thousands) Derivatives Derivatives Derivatives Derivatives Interest Rate Lock Commitments $ 708 $ 1 $ 789 $ — Forward Commitments 10 125 14 70 Interest Rate Swap Agreements 14,422 14,738 9,583 9,478 Foreign Exchange Contracts 72 313 132 145 Conversion Rate Swap Agreement — 1,000 — — Total $ 15,212 $ 16,177 $ 10,518 $ 9,693 1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the consolidated statements of condition. |
Derivative financial instruments and the amount and location of the net gains or losses recognized in the statements of income | The following table presents the Company’s derivative financial instruments and the amount and location of the net gains or losses recognized in the consolidated statements of income for the three and six months ended June 30, 2018 and 2017 : Location of Derivative Financial Instruments Net Gains (Losses) Three Months Ended Six Months Ended Not Designated as Hedging Instruments Recognized in the June 30, June 30, (dollars in thousands) Statements of Income 2018 2017 2018 2017 Interest Rate Lock Commitments Mortgage Banking $ 968 $ 1,655 $ 1,498 $ 2,922 Forward Commitments Mortgage Banking 240 (465 ) 925 (889 ) Interest Rate Swap Agreements Other Noninterest Income 632 525 750 680 Foreign Exchange Contracts Other Noninterest Income 995 796 1,959 1,846 Conversion Rate Swap Agreement Investment Securities Gains (Losses), Net (1,000 ) — (1,000 ) — Total $ 1,835 $ 2,511 $ 4,132 $ 4,559 |
Commitments, Contingencies, a36
Commitments, Contingencies, and Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Credit commitments | The Company’s credit commitments as of June 30, 2018 and December 31, 2017 were as follows: (dollars in thousands) June 30, December 31, Unfunded Commitments to Extend Credit $ 2,869,256 $ 2,780,724 Standby Letters of Credit 64,857 60,519 Commercial Letters of Credit 13,058 18,036 Total Credit Commitments $ 2,947,171 $ 2,859,279 |
Fair Value of Assets and Liab37
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Balances of assets and liabilities measured at fair value on a recurring basis | The table below presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 : Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) (Level 1) (Level 2) (Level 3) Total June 30, 2018 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 535 $ 444,177 $ — $ 444,712 Debt Securities Issued by States and Political Subdivisions — 592,601 — 592,601 Debt Securities Issued by Corporations — 223,777 — 223,777 Mortgage-Backed Securities: Residential - Government Agencies — 210,696 — 210,696 Residential - U.S. Government-Sponsored Enterprises — 559,868 — 559,868 Commercial - Government Agencies — 61,216 — 61,216 Total Mortgage-Backed Securities — 831,780 — 831,780 Total Investment Securities Available-for-Sale 535 2,092,335 — 2,092,870 Loans Held for Sale — 16,025 — 16,025 Mortgage Servicing Rights — — 1,366 1,366 Other Assets 32,400 — — 32,400 Derivatives 1 — 82 15,130 15,212 Total Assets Measured at Fair Value on a $ 32,935 $ 2,108,442 $ 16,496 $ 2,157,873 Liabilities: Derivatives 1 $ — $ 1,438 $ 14,739 $ 16,177 Total Liabilities Measured at Fair Value on a $ — $ 1,438 $ 14,739 $ 16,177 December 31, 2017 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 538 $ 425,392 $ — $ 425,930 Debt Securities Issued by States and Political Subdivisions — 627,019 — 627,019 Debt Securities Issued by Corporations — 266,111 — 266,111 Mortgage-Backed Securities: Residential - Government Agencies — 235,360 — 235,360 Residential - U.S. Government-Sponsored Enterprises — 609,812 — 609,812 Commercial - Government Agencies — 68,747 — 68,747 Total Mortgage-Backed Securities — 913,919 — 913,919 Total Investment Securities Available-for-Sale 538 2,232,441 — 2,232,979 Loans Held for Sale — 19,231 — 19,231 Mortgage Servicing Rights — — 1,454 1,454 Other Assets 29,230 — — 29,230 Derivatives 1 — 146 10,372 10,518 Total Assets Measured at Fair Value on a $ 29,768 $ 2,251,818 $ 11,826 $ 2,293,412 Liabilities: Derivatives 1 $ — $ 215 $ 9,478 $ 9,693 Total Liabilities Measured at Fair Value on a $ — $ 215 $ 9,478 $ 9,693 1 The fair value of each class of derivatives is shown in Note 12 Derivative Financial Instruments . |
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | For the three and six months ended June 30, 2018 and 2017 , the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (dollars in thousands) Mortgage Servicing Rights 1 Net Derivative Assets and Liabilities 2 Three Months Ended June 30, 2018 Balance as of April 1, 2018 $ 1,404 $ 547 Realized and Unrealized Net Gains (Losses): Included in Net Income (38 ) 968 Transfers to Loans Held for Sale — (1,198 ) Variation Margin Payments — 74 Balance as of June 30, 2018 $ 1,366 $ 391 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 391 Three Months Ended June 30, 2017 Balance as of April 1, 2017 $ 1,586 $ 1,248 Realized and Unrealized Net Gains (Losses): Included in Net Income (38 ) 1,640 Transfers to Loans Held for Sale — (1,877 ) Variation Margin Payments — 358 Balance as of June 30, 2017 $ 1,548 $ 1,369 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 1,369 Six Months Ended June 30, 2018 Balance as of January 1, 2018 $ 1,454 $ 894 Realized and Unrealized Net Gains (Losses): Included in Net Income (88 ) 1,505 Transfers to Loans Held for Sale — (1,580 ) Variation Margin Payments — (428 ) Balance as of June 30, 2018 $ 1,366 $ 391 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 391 Six Months Ended June 30, 2017 Balance as of January 1, 2017 $ 1,655 $ 1,053 Realized and Unrealized Net Gains (Losses): Included in Net Income (107 ) 2,908 Transfers to Loans Held for Sale — (2,950 ) Variation Margin Payments — 358 Balance as of June 30, 2017 $ 1,548 $ 1,369 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 1,369 1 Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of mortgage banking income in the Company’s consolidated statements of income. 2 Realized and unrealized gains and losses related to interest rate lock commitments are reported as a component of mortgage banking income in the Company’s consolidated statements of income. Realized and unrealized gains and losses related to interest rate swap agreements are reported as a component of other noninterest income in the Company’s consolidated statements of income. |
Summary of the significant unobservable inputs | For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of June 30, 2018 and December 31, 2017 , the significant unobservable inputs used in the fair value measurements were as follows: Significant Unobservable Inputs (weighted-average) Fair Value (dollars in thousands) Valuation Technique Description June 30, Dec. 31, June 30, Dec. 31, Mortgage Servicing Rights Discounted Cash Flow Constant Prepayment Rate 1 6.45 % 8.50 % $ 31,112 $ 28,170 Discount Rate 2 9.76 % 8.87 % Net Derivative Assets and Liabilities: Interest Rate Lock Commitments Pricing Model Closing Ratio 91.95 % 93.25 % $ 707 $ 789 Interest Rate Swap Agreements Discounted Cash Flow Credit Factor 0.02 % 0.10 % $ (316 ) $ 105 1 Represents annualized loan repayment rate assumption. 2 Derived from multiple interest rate scenarios that incorporate a spread to a market yield curve and market volatilities. |
Assets and liabilities measured at fair value on a nonrecurring basis | i |
Schedule of difference between the aggregate fair value and the aggregate unpaid principal balance of the Company's residential mortgage loans held for sale | The following table reflects the difference between the aggregate fair value and the aggregate unpaid principal balance of the Company’s residential mortgage loans held for sale as of June 30, 2018 and December 31, 2017 . (dollars in thousands) Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Unpaid Principal June 30, 2018 Loans Held for Sale $ 16,025 $ 15,669 $ 356 December 31, 2017 Loans Held for Sale $ 19,231 $ 18,854 $ 377 |
Schedule of carrying amount, fair value, and fair value hierarchy of financial instruments | The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments not recorded at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 . This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For non-marketable equity securities such as Federal Home Loan Bank and Federal Reserve Bank stock, the carrying amount is a reasonable estimate of fair value as these securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. Fair Value Measurements Carrying Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) June 30, 2018 Financial Instruments - Assets Investment Securities Held-to-Maturity $ 3,595,891 $ 3,500,497 $ 362,782 $ 3,137,715 $ — Loans 1 9,688,883 9,577,141 — — 9,577,141 Financial Instruments - Liabilities Time Deposits 1,713,323 1,699,097 — 1,699,097 — Securities Sold Under Agreements to Repurchase 504,193 504,167 — 504,167 — Other Debt 2 225,000 223,424 — 223,424 — December 31, 2017 Financial Instruments - Assets Investment Securities Held-to-Maturity $ 3,928,170 $ 3,894,121 $ 373,640 $ 3,520,481 $ — Loans 1 9,436,506 9,519,369 — — 9,519,369 Financial Instruments - Liabilities Time Deposits 1,688,092 1,679,684 — 1,679,684 — Securities Sold Under Agreements to Repurchase 505,293 505,278 — 505,278 — Other Debt 2 250,000 248,520 — 248,520 — 1 Carrying amount is net of unearned income and the Allowance. In accordance with the prospective adoption of ASU No. 2016-01, the fair value of loans as of June 30, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion. 2 Excludes capitalized lease obligations. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30, 2018 and 2017 . Three Months Ended Six Months Ended (dollars in thousands) 2018 2017 2018 2017 Noninterest Income In-scope of Topic 606: Trust and Asset Management $ 11,356 $ 11,796 $ 22,537 $ 23,275 Service Charges on Deposit Accounts 3,214 3,823 6,788 7,856 Fees, Exchange, and Other Service Charges 11,457 11,279 23,050 22,034 Annuity and Insurance 1,758 1,999 2,901 3,890 Other 2,532 2,449 4,810 4,544 Noninterest Income (in-scope of Topic 606) 30,317 31,346 60,086 61,599 Noninterest Income (out-of-scope of Topic 606) 10,981 13,890 25,247 39,553 Total Noninterest Income $ 41,298 $ 45,236 $ 85,333 $ 101,152 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Variable Interest Entities) (Details 1) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | ||
Unfunded commitments to fund low-income housing partnerships | $ 13,794 | |
Other Assets | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 82,900 | $ 87,600 |
Other Liabilities | ||
Variable Interest Entity [Line Items] | ||
Unfunded commitments to fund low-income housing partnerships | $ 13,800 | $ 17,500 |
Low-income housing partnerships | ||
Variable Interest Entity [Line Items] | ||
Period over which tax credits or benefits are generally recognized (in years) | 10 years | |
Solar energy partnerships | ||
Variable Interest Entity [Line Items] | ||
Period over which tax credits or benefits are generally recognized (in years) | 6 years |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Tax Cuts and Jobs Act) (Details 2) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Dec. 31, 2017 | Mar. 31, 2018 | Jun. 30, 2018 | |
Accounting Policies [Abstract] | |||
Provisional income tax expense | $ 3.6 | $ 0.1 | |
Low income housing investment partnerships basis adjustments, provision income tax expense | $ 2 | $ 2 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Accounting Standards Updates) (Details 3) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Retained Earnings | $ 1,581,168,000 | $ 1,512,218,000 | |
Accounting Standards Update 2018-02 | |||
Reclassification from AOCI | $ 7,500,000 | ||
Retained Earnings | 7,500,000 | ||
Income tax effects allocated to equity | $ 0 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Abstract] | ||||
Interest-Bearing Deposits in Other Banks | $ 3,524 | $ 3,421 | ||
Funds Sold | 361,933 | 181,413 | ||
Cash and Due From Banks | 312,303 | 263,017 | ||
Total Cash and Cash Equivalents | $ 677,760 | $ 447,851 | $ 874,227 | $ 879,607 |
Investment Securities (Amortiza
Investment Securities (Amortization Cost, Gross Unrealized Gains/Losses, and Fair Value) (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | $ 2,113,714 | $ 2,236,144 |
Available-for-Sale: Gross Unrealized Gains | 9,875 | 15,695 |
Available-for-Sale: Gross Unrealized Losses | (30,719) | (18,860) |
Available-for-Sale | 2,092,870 | 2,232,979 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-Maturity: Amortized Cost | 3,595,891 | 3,928,170 |
Held-to-Maturity: Gross Unrealized Gains | 12,695 | 20,949 |
Held-to-Maturity: Gross Unrealized Losses | (108,089) | (54,998) |
Held-to-Maturity: Fair Value | 3,500,497 | 3,894,121 |
Residential - Government Agencies | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 209,624 | 233,268 |
Available-for-Sale: Gross Unrealized Gains | 2,180 | 3,129 |
Available-for-Sale: Gross Unrealized Losses | (1,108) | (1,037) |
Available-for-Sale | 210,696 | 235,360 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-Maturity: Amortized Cost | 2,003,782 | 2,229,985 |
Held-to-Maturity: Gross Unrealized Gains | 4,976 | 9,975 |
Held-to-Maturity: Gross Unrealized Losses | (70,085) | (37,047) |
Held-to-Maturity: Fair Value | 1,938,673 | 2,202,913 |
Residential - U.S. Government-Sponsored Enterprises | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 579,602 | 619,795 |
Available-for-Sale: Gross Unrealized Gains | 383 | 420 |
Available-for-Sale: Gross Unrealized Losses | (20,117) | (10,403) |
Available-for-Sale | 559,868 | 609,812 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-Maturity: Amortized Cost | 701,326 | 763,312 |
Held-to-Maturity: Gross Unrealized Gains | 273 | 911 |
Held-to-Maturity: Gross Unrealized Losses | (26,872) | (11,255) |
Held-to-Maturity: Fair Value | 674,727 | 752,968 |
Commercial - Government Agencies | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 65,565 | 71,999 |
Available-for-Sale: Gross Unrealized Gains | 0 | 0 |
Available-for-Sale: Gross Unrealized Losses | (4,349) | (3,252) |
Available-for-Sale | 61,216 | 68,747 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-Maturity: Amortized Cost | 184,657 | 201,660 |
Held-to-Maturity: Gross Unrealized Gains | 45 | 797 |
Held-to-Maturity: Gross Unrealized Losses | (6,331) | (3,654) |
Held-to-Maturity: Fair Value | 178,371 | 198,803 |
Mortgage-Backed Securities | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 854,791 | 925,062 |
Available-for-Sale: Gross Unrealized Gains | 2,563 | 3,549 |
Available-for-Sale: Gross Unrealized Losses | (25,574) | (14,692) |
Available-for-Sale | 831,780 | 913,919 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-Maturity: Amortized Cost | 2,889,765 | 3,194,957 |
Held-to-Maturity: Gross Unrealized Gains | 5,294 | 11,683 |
Held-to-Maturity: Gross Unrealized Losses | (103,288) | (51,956) |
Held-to-Maturity: Fair Value | 2,791,771 | 3,154,684 |
Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 446,766 | 424,912 |
Available-for-Sale: Gross Unrealized Gains | 578 | 2,053 |
Available-for-Sale: Gross Unrealized Losses | (2,632) | (1,035) |
Available-for-Sale | 444,712 | 425,930 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-Maturity: Amortized Cost | 364,604 | 375,074 |
Held-to-Maturity: Gross Unrealized Gains | 1 | 18 |
Held-to-Maturity: Gross Unrealized Losses | (1,824) | (1,451) |
Held-to-Maturity: Fair Value | 362,781 | 373,641 |
Debt Securities Issued by States and Political Subdivisions | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 587,160 | 618,167 |
Available-for-Sale: Gross Unrealized Gains | 6,655 | 9,894 |
Available-for-Sale: Gross Unrealized Losses | (1,214) | (1,042) |
Available-for-Sale | 592,601 | 627,019 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-Maturity: Amortized Cost | 236,567 | 238,504 |
Held-to-Maturity: Gross Unrealized Gains | 7,400 | 9,125 |
Held-to-Maturity: Gross Unrealized Losses | 0 | 0 |
Held-to-Maturity: Fair Value | 243,967 | 247,629 |
Debt Securities Issued by Corporations | ||
Available-for-Sale: | ||
Available-for-Sale: Amortized Cost | 224,997 | 268,003 |
Available-for-Sale: Gross Unrealized Gains | 79 | 199 |
Available-for-Sale: Gross Unrealized Losses | (1,299) | (2,091) |
Available-for-Sale | 223,777 | 266,111 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-Maturity: Amortized Cost | 104,955 | 119,635 |
Held-to-Maturity: Gross Unrealized Gains | 0 | 123 |
Held-to-Maturity: Gross Unrealized Losses | (2,977) | (1,591) |
Held-to-Maturity: Fair Value | $ 101,978 | $ 118,167 |
Investment Securities (Contract
Investment Securities (Contractual Maturities and Narrative) (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis Rolling Maturity[Abstract] | ||
Due in One Year or Less | $ 46,250 | |
Due After One Year Through Five Years | 628,271 | |
Due After Five Years Through Ten Years | 115,193 | |
Due After Ten Years | 22,994 | |
Amortized Cost, Total | 812,708 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract] | ||
Due in One Year or Less | 46,201 | |
Due After One Year Through Five Years | 628,659 | |
Due After Five Years Through Ten Years | 118,197 | |
Due After Ten Years | 23,856 | |
Fair Value, Total | 816,913 | |
Available-for-Sale: Amortized Cost | 2,113,714 | $ 2,236,144 |
Available-for-Sale: Fair Value | 2,092,870 | 2,232,979 |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Rolling Maturities (Abstract] | ||
Due in One Year or Less | 244,843 | |
Due After One Year Through Five Years | 209,721 | |
Due After Five Years Through Ten Years | 234,444 | |
Due After Ten Years | 17,118 | |
Amortized Cost, Total | 706,126 | |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | ||
Due in One Year or Less | 244,173 | |
Due After One Year Through Five Years | 210,339 | |
Due After Five Years Through Ten Years | 236,128 | |
Due After Ten Years | 18,086 | |
Fair Value, Total | 708,726 | |
Held-to-Maturity: Amortized Cost | 3,595,891 | |
Held-to-Maturity: Fair Value | 3,500,497 | 3,894,121 |
Carrying value of investment securities which were pledged to secure deposits of gov't entities and repos | 2,300,000 | 2,400,000 |
Debt Securities Issued by Government Agencies | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract] | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Amortized Cost | 446,215 | |
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value | 444,177 | |
Residential - Government Agencies | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract] | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Amortized Cost | 209,624 | |
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value | 210,696 | |
Available-for-Sale: Amortized Cost | 209,624 | 233,268 |
Available-for-Sale: Fair Value | 210,696 | 235,360 |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | ||
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost | 2,003,782 | |
Held-to-Maturity: Mortgage-Backed Securities: Fair Value | 1,938,673 | |
Held-to-Maturity: Fair Value | 1,938,673 | 2,202,913 |
Residential - U.S. Government-Sponsored Enterprises | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract] | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Amortized Cost | 579,602 | |
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value | 559,868 | |
Available-for-Sale: Amortized Cost | 579,602 | 619,795 |
Available-for-Sale: Fair Value | 559,868 | 609,812 |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | ||
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost | 701,326 | |
Held-to-Maturity: Mortgage-Backed Securities: Fair Value | 674,727 | |
Held-to-Maturity: Fair Value | 674,727 | 752,968 |
Commercial - Government Agencies | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract] | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Amortized Cost | 65,565 | |
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value | 61,216 | |
Available-for-Sale: Amortized Cost | 65,565 | 71,999 |
Available-for-Sale: Fair Value | 61,216 | 68,747 |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | ||
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost | 184,657 | |
Held-to-Maturity: Mortgage-Backed Securities: Fair Value | 178,371 | |
Held-to-Maturity: Fair Value | 178,371 | 198,803 |
Mortgage-Backed Securities | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract] | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Amortized Cost | 854,791 | |
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value | 831,780 | |
Available-for-Sale: Amortized Cost | 854,791 | 925,062 |
Available-for-Sale: Fair Value | 831,780 | 913,919 |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | ||
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost | 2,889,765 | |
Held-to-Maturity: Mortgage-Backed Securities: Fair Value | 2,791,771 | |
Held-to-Maturity: Fair Value | $ 2,791,771 | $ 3,154,684 |
Investment Securities (Gains an
Investment Securities (Gains and Losses on Sales) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gain on Sale of Investments | $ 0 | $ 0 | $ 0 | $ 12,467 |
Gain (Loss) on Sale of Investments | (1,702) | (520) | (2,368) | 11,613 |
Loss on Sale of Investments | $ 1,702 | $ 520 | $ 2,368 | $ 854 |
Investment Securities (Unrealiz
Investment Securities (Unrealized Position - Less than 12 Mos., 12 Mos. or Longer) (Details 4) $ in Thousands | Jun. 30, 2018USD ($)security | Dec. 31, 2017USD ($) |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | $ 807,429 | $ 729,547 |
Less Than 12 Months, Gross Unrealized Losses | (13,175) | (7,370) |
12 Months or Longer, Fair Value | 578,198 | 555,984 |
12 Months or Longer, Gross Unrealized Losses | (17,544) | (11,490) |
Total Fair Value | 1,385,627 | 1,285,531 |
Total Gross Unrealized Losses | (30,719) | (18,860) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 1,775,882 | 1,604,272 |
Less Than 12 Months, Gross Unrealized Losses | (46,409) | (16,015) |
12 Months or Longer, Fair Value | 1,182,477 | 1,274,325 |
12 Months or Longer, Gross Unrealized Losses | (61,680) | (38,983) |
Total Fair Value | 2,958,359 | 2,878,597 |
Total Gross Unrealized Losses | $ (108,089) | (54,998) |
Number of Investment Securities in an Unrealized Loss Position | security | 468 | |
Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | $ 230,073 | 103,842 |
Less Than 12 Months, Gross Unrealized Losses | (1,367) | (599) |
12 Months or Longer, Fair Value | 142,480 | 132,071 |
12 Months or Longer, Gross Unrealized Losses | (1,265) | (436) |
Total Fair Value | 372,553 | 235,913 |
Total Gross Unrealized Losses | (2,632) | (1,035) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 273,578 | 254,283 |
Less Than 12 Months, Gross Unrealized Losses | (826) | (532) |
12 Months or Longer, Fair Value | 69,214 | 89,391 |
12 Months or Longer, Gross Unrealized Losses | (998) | (919) |
Total Fair Value | 342,792 | 343,674 |
Total Gross Unrealized Losses | (1,824) | (1,451) |
Debt Securities Issued by States and Political Subdivisions | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 199,140 | 172,343 |
Less Than 12 Months, Gross Unrealized Losses | (1,207) | (1,032) |
12 Months or Longer, Fair Value | 677 | 734 |
12 Months or Longer, Gross Unrealized Losses | (7) | (10) |
Total Fair Value | 199,817 | 173,077 |
Total Gross Unrealized Losses | (1,214) | (1,042) |
Debt Securities Issued by Corporations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 24,725 | 12,985 |
Less Than 12 Months, Gross Unrealized Losses | (275) | (15) |
12 Months or Longer, Fair Value | 163,972 | 192,927 |
12 Months or Longer, Gross Unrealized Losses | (1,024) | (2,076) |
Total Fair Value | 188,697 | 205,912 |
Total Gross Unrealized Losses | (1,299) | (2,091) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 54,449 | 25,490 |
Less Than 12 Months, Gross Unrealized Losses | (1,000) | (110) |
12 Months or Longer, Fair Value | 47,529 | 58,869 |
12 Months or Longer, Gross Unrealized Losses | (1,977) | (1,481) |
Total Fair Value | 101,978 | 84,359 |
Total Gross Unrealized Losses | (2,977) | (1,591) |
Residential - Government Agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 8,510 | 11,035 |
Less Than 12 Months, Gross Unrealized Losses | (71) | (4) |
12 Months or Longer, Fair Value | 18,042 | 10,618 |
12 Months or Longer, Gross Unrealized Losses | (1,037) | (1,033) |
Total Fair Value | 26,552 | 21,653 |
Total Gross Unrealized Losses | (1,108) | (1,037) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 988,147 | 1,030,472 |
Less Than 12 Months, Gross Unrealized Losses | (31,731) | (12,262) |
12 Months or Longer, Fair Value | 684,927 | 704,545 |
12 Months or Longer, Gross Unrealized Losses | (38,354) | (24,785) |
Total Fair Value | 1,673,074 | 1,735,017 |
Total Gross Unrealized Losses | (70,085) | (37,047) |
Residential - U.S. Government-Sponsored Enterprises | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 344,981 | 429,342 |
Less Than 12 Months, Gross Unrealized Losses | (10,255) | (5,720) |
12 Months or Longer, Fair Value | 191,811 | 150,887 |
12 Months or Longer, Gross Unrealized Losses | (9,862) | (4,683) |
Total Fair Value | 536,792 | 580,229 |
Total Gross Unrealized Losses | (20,117) | (10,403) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 364,248 | 293,530 |
Less Than 12 Months, Gross Unrealized Losses | (11,698) | (3,106) |
12 Months or Longer, Fair Value | 304,212 | 339,232 |
12 Months or Longer, Gross Unrealized Losses | (15,174) | (8,149) |
Total Fair Value | 668,460 | 632,762 |
Total Gross Unrealized Losses | (26,872) | (11,255) |
Commercial - Government Agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 0 | 0 |
Less Than 12 Months, Gross Unrealized Losses | 0 | 0 |
12 Months or Longer, Fair Value | 61,216 | 68,747 |
12 Months or Longer, Gross Unrealized Losses | (4,349) | (3,252) |
Total Fair Value | 61,216 | 68,747 |
Total Gross Unrealized Losses | (4,349) | (3,252) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 95,460 | 497 |
Less Than 12 Months, Gross Unrealized Losses | (1,154) | (5) |
12 Months or Longer, Fair Value | 76,595 | 82,288 |
12 Months or Longer, Gross Unrealized Losses | (5,177) | (3,649) |
Total Fair Value | 172,055 | 82,785 |
Total Gross Unrealized Losses | (6,331) | (3,654) |
Mortgage-Backed Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 353,491 | 440,377 |
Less Than 12 Months, Gross Unrealized Losses | (10,326) | (5,724) |
12 Months or Longer, Fair Value | 271,069 | 230,252 |
12 Months or Longer, Gross Unrealized Losses | (15,248) | (8,968) |
Total Fair Value | 624,560 | 670,629 |
Total Gross Unrealized Losses | (25,574) | (14,692) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 1,447,855 | 1,324,499 |
Less Than 12 Months, Gross Unrealized Losses | (44,583) | (15,373) |
12 Months or Longer, Fair Value | 1,065,734 | 1,126,065 |
12 Months or Longer, Gross Unrealized Losses | (58,705) | (36,583) |
Total Fair Value | 2,513,589 | 2,450,564 |
Total Gross Unrealized Losses | $ (103,288) | $ (51,956) |
(Interest Income - Taxable_Non-
(Interest Income - Taxable/Non-Taxable Invest. Sec.) (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Interest Income from Investment Securities, Taxable | $ 28,405 | $ 26,741 | $ 57,076 | $ 52,508 |
Interest Income from Investment Securities, Non-Taxable | 4,686 | 5,012 | 9,452 | 10,035 |
Total Interest Income from Investment Securities | $ 33,091 | $ 31,753 | $ 66,528 | $ 62,543 |
Investment Securities (Municipa
Investment Securities (Municipal Bonds Narrative) (Details 6) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |
Municipal Debt Securities Issued by One Single State or Political Subdivision as Percentage of Total Fair Value of Entire Municipal Debt Securities Threshold | 10.00% |
HAWAII | Debt Securities Issued by States and Political Subdivisions | |
Debt Securities, Available-for-sale [Line Items] | |
Debt Securities Issued by State and Political Subdivision, State of Hawaii | $ 478.1 |
Municipal Debt Securities | Geographic Concentration Risk | HAWAII | Debt Securities Issued by States and Political Subdivisions | |
Debt Securities, Available-for-sale [Line Items] | |
Concentration risk, percentage | 57.00% |
Hawaiian Municipal Debt Securities | Investment Concentration Risk | HAWAII | General Obligation Bond | |
Debt Securities, Available-for-sale [Line Items] | |
Concentration risk, percentage | 78.00% |
Moody's, Aa2 Rating (or better) | Hawaiian Municipal Debt Securities | Investment Concentration Risk | HAWAII | Debt Securities Issued by States and Political Subdivisions | |
Debt Securities, Available-for-sale [Line Items] | |
Concentration risk, percentage | 94.00% |
(FHLB and FRB Stocks) (Details
(FHLB and FRB Stocks) (Details 7) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal Home Loan Bank Stock | $ 19,000 | $ 20,000 |
Federal Reserve Bank Stock | 20,796 | 20,645 |
Total | $ 39,796 | $ 40,645 |
Investment Securities (Visa Cla
Investment Securities (Visa Class B Restricted Shares Narrative) (Details 8) $ in Thousands | Jun. 28, 2018 | Jun. 27, 2018 | Jun. 30, 2018USD ($)shares |
Visa Conversion Rate Swap Agreement | |||
Net Investment Income [Line Items] | |||
Debt Instrument, Convertible, Conversion Ratio | 1.6298 | 1.6483 | |
Equity securities remaining, shares | 83,014 | ||
Visa Class A Unrestricted Securities | |||
Net Investment Income [Line Items] | |||
Equity securities remaining, shares | 135,296 | ||
Visa Conversion Rate Swap Agreement | |||
Net Investment Income [Line Items] | |||
Liability Derivatives | $ | $ 1,000 |
Loans and Leases and the Allo51
Loans and Leases and the Allowance for Loan and Lease Losses (Loans and Leases Portfolio and Narrative) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Loan and lease portfolio | |||||
Loans and Leases | $ 10,053,323 | $ 9,387,613 | $ 10,053,323 | $ 9,387,613 | $ 9,796,947 |
Net Gains Related to Sales of Residential Mortgage Loans | 500 | 1,800 | 800 | 3,200 | |
Commercial | |||||
Loan and lease portfolio | |||||
Loans and Leases | 3,816,272 | 3,704,912 | 3,816,272 | 3,704,912 | 3,766,498 |
Commercial | Commercial and Industrial | |||||
Loan and lease portfolio | |||||
Loans and Leases | 1,282,967 | 1,282,967 | 1,279,347 | ||
Commercial | Commercial Mortgage | |||||
Loan and lease portfolio | |||||
Loans and Leases | 2,169,357 | 2,169,357 | 2,103,967 | ||
Commercial | Construction | |||||
Loan and lease portfolio | |||||
Loans and Leases | 185,350 | 185,350 | 202,253 | ||
Commercial | Lease Financing | |||||
Loan and lease portfolio | |||||
Loans and Leases | 178,598 | 178,598 | 180,931 | ||
Consumer | |||||
Loan and lease portfolio | |||||
Loans and Leases | 6,237,051 | $ 5,682,701 | 6,237,051 | $ 5,682,701 | 6,030,449 |
Consumer | Residential Mortgage | |||||
Loan and lease portfolio | |||||
Loans and Leases | 3,548,444 | 3,548,444 | 3,466,773 | ||
Consumer | Home Equity | |||||
Loan and lease portfolio | |||||
Loans and Leases | 1,622,314 | 1,622,314 | 1,585,455 | ||
Consumer | Automobile | |||||
Loan and lease portfolio | |||||
Loans and Leases | 592,705 | 592,705 | 528,474 | ||
Consumer | Other | |||||
Loan and lease portfolio | |||||
Loans and Leases | $ 473,588 | $ 473,588 | $ 449,747 |
Loans and Leases and the Allo52
Loans and Leases and the Allowance for Loan and Lease Losses (Allowance for Loan and Lease Losses) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
Allowance for Loan and Lease Losses: | |||||||
Balance at Beginning of Period | $ 107,938 | $ 105,064 | $ 107,346 | $ 104,273 | |||
Loans and Leases Charged-Off | (5,661) | (5,487) | (11,649) | (11,191) | |||
Recoveries on Loans and Leases Previously Charged-Off | 2,411 | 2,526 | 4,866 | 4,621 | |||
Net Loans and Leases Recovered (Charged-Off) | (3,250) | (2,961) | (6,783) | (6,570) | |||
Provision for Credit Losses | 3,500 | 4,250 | 7,625 | 8,650 | |||
Balance at End of Period | 108,188 | 106,353 | 108,188 | 106,353 | |||
Allowance for Loan and Lease Losses: | |||||||
Individually Evaluated for Impairment | $ 3,927 | $ 3,837 | |||||
Collectively Evaluated for Impairment | 104,261 | 102,516 | |||||
Total | 107,938 | 105,064 | 107,346 | 104,273 | 108,188 | $ 107,346 | 106,353 |
Recorded Investment in Loans and Leases: | |||||||
Individually Evaluated for Impairment | 54,165 | 58,725 | |||||
Collectively Evaluated for Impairment | 9,999,158 | 9,328,888 | |||||
Total Loans and Leases | 10,053,323 | 9,796,947 | 9,387,613 | ||||
Commercial | |||||||
Allowance for Loan and Lease Losses: | |||||||
Balance at Beginning of Period | 64,110 | 66,893 | 65,822 | 65,680 | |||
Loans and Leases Charged-Off | (485) | (124) | (691) | (298) | |||
Recoveries on Loans and Leases Previously Charged-Off | 366 | 266 | 694 | 602 | |||
Net Loans and Leases Recovered (Charged-Off) | (119) | 142 | 3 | 304 | |||
Provision for Credit Losses | (279) | (853) | (2,113) | 198 | |||
Balance at End of Period | 63,712 | 66,182 | 63,712 | 66,182 | |||
Allowance for Loan and Lease Losses: | |||||||
Individually Evaluated for Impairment | 100 | 45 | |||||
Collectively Evaluated for Impairment | 63,612 | 66,137 | |||||
Total | 64,110 | 66,893 | 65,822 | 65,680 | 63,712 | 65,822 | 66,182 |
Recorded Investment in Loans and Leases: | |||||||
Individually Evaluated for Impairment | 12,184 | 20,197 | |||||
Collectively Evaluated for Impairment | 3,804,088 | 3,684,715 | |||||
Total Loans and Leases | 3,816,272 | 3,766,498 | 3,704,912 | ||||
Consumer | |||||||
Allowance for Loan and Lease Losses: | |||||||
Balance at Beginning of Period | 43,828 | 38,171 | 41,524 | 38,593 | |||
Loans and Leases Charged-Off | (5,176) | (5,363) | (10,958) | (10,893) | |||
Recoveries on Loans and Leases Previously Charged-Off | 2,045 | 2,260 | 4,172 | 4,019 | |||
Net Loans and Leases Recovered (Charged-Off) | (3,131) | (3,103) | (6,786) | (6,874) | |||
Provision for Credit Losses | 3,779 | 5,103 | 9,738 | 8,452 | |||
Balance at End of Period | 44,476 | 40,171 | 44,476 | 40,171 | |||
Allowance for Loan and Lease Losses: | |||||||
Individually Evaluated for Impairment | 3,827 | 3,792 | |||||
Collectively Evaluated for Impairment | 40,649 | 36,379 | |||||
Total | $ 43,828 | $ 38,171 | $ 41,524 | $ 38,593 | 44,476 | 41,524 | 40,171 |
Recorded Investment in Loans and Leases: | |||||||
Individually Evaluated for Impairment | 41,981 | 38,528 | |||||
Collectively Evaluated for Impairment | 6,195,070 | 5,644,173 | |||||
Total Loans and Leases | $ 6,237,051 | $ 6,030,449 | $ 5,682,701 |
Loans and Leases and the Allo53
Loans and Leases and the Allowance for Loan and Lease Losses (Credit Quality Indicators & Narrative) (Details 3) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | $ 10,053,323 | $ 9,796,947 | $ 9,387,613 |
Classified | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Number of months up to which residential and home equity loans may be considered classified, even if they are current as to principal and interest | 6 months | ||
Residential Mortgage | Classified | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Number of days past due for loans and leases in classified credit quality indicator | 90 days | ||
Maximum current loan-to-value ratio for residential mortgage and home equity loans to be considered as pass (as a percent) | 60.00% | ||
Home Equity | Classified | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Number of days past due for loans and leases in classified credit quality indicator | 90 days | ||
Maximum current loan-to-value ratio for residential mortgage and home equity loans to be considered as pass (as a percent) | 60.00% | ||
Commercial | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | $ 3,816,272 | 3,766,498 | 3,704,912 |
Commercial | Pass | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 3,715,981 | 3,660,931 | |
Commercial | Special Mention | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 69,666 | 51,173 | |
Commercial | Classified | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 30,625 | 54,394 | |
Commercial | Commercial and Industrial | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 1,282,967 | 1,279,347 | |
Commercial | Commercial and Industrial | Pass | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 1,239,719 | 1,234,738 | |
Commercial | Commercial and Industrial | Special Mention | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 31,290 | 15,394 | |
Commercial | Commercial and Industrial | Classified | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 11,958 | 29,215 | |
Commercial | Commercial Mortgage | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 2,169,357 | 2,103,967 | |
Commercial | Commercial Mortgage | Pass | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 2,116,370 | 2,046,745 | |
Commercial | Commercial Mortgage | Special Mention | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 37,903 | 35,762 | |
Commercial | Commercial Mortgage | Classified | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 15,084 | 21,460 | |
Commercial | Construction | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 185,350 | 202,253 | |
Commercial | Construction | Pass | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 182,092 | 198,926 | |
Commercial | Construction | Special Mention | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 0 | 6 | |
Commercial | Construction | Classified | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 3,258 | 3,321 | |
Commercial | Lease Financing | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 178,598 | 180,931 | |
Commercial | Lease Financing | Pass | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 177,800 | 180,522 | |
Commercial | Lease Financing | Special Mention | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 473 | 11 | |
Commercial | Lease Financing | Classified | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 325 | 398 | |
Consumer | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 6,237,051 | 6,030,449 | $ 5,682,701 |
Consumer | Pass | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | $ 6,224,291 | 6,015,043 | |
Consumer | Classified | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Number of days past due for loans and leases in classified credit quality indicator | 90 days | ||
Total Recorded Investment in Loans and Leases | $ 12,760 | 15,406 | |
Consumer | Residential Mortgage | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 3,548,444 | 3,466,773 | |
Consumer | Residential Mortgage | Pass | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 3,541,722 | 3,457,531 | |
Consumer | Residential Mortgage | Classified | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 6,722 | 9,242 | |
Consumer | Home Equity | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 1,622,314 | 1,585,455 | |
Consumer | Home Equity | Pass | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 1,617,621 | 1,580,917 | |
Consumer | Home Equity | Classified | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 4,693 | 4,538 | |
Consumer | Automobile | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 592,705 | 528,474 | |
Consumer | Automobile | Pass | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 592,030 | 527,587 | |
Consumer | Automobile | Classified | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 675 | 887 | |
Consumer | Other | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 473,588 | 449,747 | |
Consumer | Other | Pass | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | 472,918 | 449,008 | |
Consumer | Other | Classified | |||
Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator | |||
Total Recorded Investment in Loans and Leases | $ 670 | $ 739 |
Loans and Leases and the Allo54
Loans and Leases and the Allowance for Loan and Lease Losses (Aging Analysis) (Details 4) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | $ 12,231 | $ 15,080 | |
Total Past Due and Non-Accrual | 55,608 | 61,352 | |
Current | 9,997,715 | 9,735,595 | |
Total Loans and Leases | 10,053,323 | 9,796,947 | $ 9,387,613 |
Non-Accrual Loans and Leases that are Current | $ 3,430 | 2,896 | |
Number of days non-accrual loans are not past due | 30 days | ||
30 - 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | $ 21,620 | 29,465 | |
60 - 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 8,444 | 9,660 | |
Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 13,313 | 7,147 | |
Commercial | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 1,576 | 1,846 | |
Total Past Due and Non-Accrual | 9,703 | 7,274 | |
Current | 3,806,569 | 3,759,224 | |
Total Loans and Leases | 3,816,272 | 3,766,498 | 3,704,912 |
Non-Accrual Loans and Leases that are Current | 1,150 | 778 | |
Commercial | 30 - 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 1,749 | 4,383 | |
Commercial | 60 - 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 696 | 1,045 | |
Commercial | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 5,682 | 0 | |
Commercial | Commercial and Industrial | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 917 | 448 | |
Total Past Due and Non-Accrual | 2,166 | 5,285 | |
Current | 1,280,801 | 1,274,062 | |
Total Loans and Leases | 1,282,967 | 1,279,347 | |
Non-Accrual Loans and Leases that are Current | 716 | 313 | |
Commercial | Commercial and Industrial | 30 - 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 551 | 4,196 | |
Commercial | Commercial and Industrial | 60 - 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 696 | 641 | |
Commercial | Commercial and Industrial | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 2 | 0 | |
Commercial | Commercial Mortgage | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 659 | 1,398 | |
Total Past Due and Non-Accrual | 6,830 | 1,989 | |
Current | 2,162,527 | 2,101,978 | |
Total Loans and Leases | 2,169,357 | 2,103,967 | |
Non-Accrual Loans and Leases that are Current | 434 | 465 | |
Commercial | Commercial Mortgage | 30 - 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 491 | 187 | |
Commercial | Commercial Mortgage | 60 - 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 404 | |
Commercial | Commercial Mortgage | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 5,680 | 0 | |
Commercial | Construction | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 707 | 0 | |
Current | 184,643 | 202,253 | |
Total Loans and Leases | 185,350 | 202,253 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Commercial | Construction | 30 - 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 707 | 0 | |
Commercial | Construction | 60 - 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
Commercial | Construction | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
Commercial | Lease Financing | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 0 | 0 | |
Current | 178,598 | 180,931 | |
Total Loans and Leases | 178,598 | 180,931 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Commercial | Lease Financing | 30 - 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
Commercial | Lease Financing | 60 - 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
Commercial | Lease Financing | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
Consumer | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 10,655 | 13,234 | |
Total Past Due and Non-Accrual | 45,905 | 54,078 | |
Current | 6,191,146 | 5,976,371 | |
Total Loans and Leases | 6,237,051 | 6,030,449 | $ 5,682,701 |
Non-Accrual Loans and Leases that are Current | 2,280 | 2,118 | |
Consumer | 30 - 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 19,871 | 25,082 | |
Consumer | 60 - 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 7,748 | 8,615 | |
Consumer | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 7,631 | 7,147 | |
Consumer | Residential Mortgage | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 6,722 | 9,243 | |
Total Past Due and Non-Accrual | 14,261 | 21,769 | |
Current | 3,534,183 | 3,445,004 | |
Total Loans and Leases | 3,548,444 | 3,466,773 | |
Non-Accrual Loans and Leases that are Current | 455 | 806 | |
Consumer | Residential Mortgage | 30 - 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 2,028 | 7,815 | |
Consumer | Residential Mortgage | 60 - 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 3,230 | 2,008 | |
Consumer | Residential Mortgage | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 2,281 | 2,703 | |
Consumer | Home Equity | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 3,933 | 3,991 | |
Total Past Due and Non-Accrual | 12,330 | 10,883 | |
Current | 1,609,984 | 1,574,572 | |
Total Loans and Leases | 1,622,314 | 1,585,455 | |
Non-Accrual Loans and Leases that are Current | 1,825 | 1,312 | |
Consumer | Home Equity | 30 - 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 4,240 | 2,532 | |
Consumer | Home Equity | 60 - 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 1,141 | 2,736 | |
Consumer | Home Equity | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 3,016 | 1,624 | |
Consumer | Automobile | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 13,459 | 14,846 | |
Current | 579,246 | 513,628 | |
Total Loans and Leases | 592,705 | 528,474 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Consumer | Automobile | 30 - 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 10,809 | 11,728 | |
Consumer | Automobile | 60 - 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 1,976 | 2,232 | |
Consumer | Automobile | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 674 | 886 | |
Consumer | Other | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 5,855 | 6,580 | |
Current | 467,733 | 443,167 | |
Total Loans and Leases | 473,588 | 449,747 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Consumer | Other | 30 - 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 2,794 | 3,007 | |
Consumer | Other | 60 - 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 1,401 | 1,639 | |
Consumer | Other | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | $ 1,660 | $ 1,934 |
Loans and Leases and the Allo55
Loans and Leases and the Allowance for Loan and Lease Losses (Impaired Loans) (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Impaired Loans Information: | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 10,673 | $ 10,673 | $ 18,205 | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 17,715 | 17,715 | 29,358 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 43,492 | 43,492 | 43,013 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 48,847 | 48,847 | 47,756 | ||
Related Allowance for Loan Losses | 3,927 | 3,927 | 3,916 | ||
Recorded Investment | 54,165 | 54,165 | 61,218 | ||
Unpaid Principal Balance | 66,562 | 66,562 | 77,114 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 15,277 | $ 19,563 | 16,252 | $ 19,855 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized, Accrual Method | 135 | 162 | 358 | 352 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 42,719 | 39,967 | 42,815 | 40,063 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized, Accrual Method | 588 | 499 | 1,151 | 965 | |
Impaired Loans Average Recorded Investment | 57,996 | 59,530 | 59,067 | 59,918 | |
Impaired Loans Interest Income Recognized | 723 | 661 | 1,509 | 1,317 | |
Commercial | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 10,673 | 10,673 | 18,205 | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 17,715 | 17,715 | 29,358 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,511 | 1,511 | 2,011 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,123 | 2,123 | 2,011 | ||
Related Allowance for Loan Losses | 100 | 100 | 141 | ||
Recorded Investment | 12,184 | 12,184 | 20,216 | ||
Unpaid Principal Balance | 19,838 | 19,838 | 31,369 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 15,277 | 19,563 | 16,252 | 19,855 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized, Accrual Method | 135 | 162 | 358 | 352 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,364 | 988 | 1,579 | 1,035 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized, Accrual Method | 13 | 13 | 26 | 28 | |
Impaired Loans Average Recorded Investment | 16,641 | 20,551 | 17,831 | 20,890 | |
Impaired Loans Interest Income Recognized | 148 | 175 | 384 | 380 | |
Commercial | Commercial and Industrial | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 6,097 | 6,097 | 8,094 | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 9,639 | 9,639 | 15,747 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,288 | 1,288 | 811 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,900 | 1,900 | 811 | ||
Related Allowance for Loan Losses | 78 | 78 | 21 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 7,540 | 8,717 | 7,724 | 8,996 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized, Accrual Method | 83 | 61 | 196 | 142 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,128 | 657 | 1,022 | 693 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized, Accrual Method | 10 | 9 | 20 | 20 | |
Commercial | Commercial Mortgage | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 3,203 | 3,203 | 8,696 | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 6,703 | 6,703 | 12,196 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 223 | 223 | 1,200 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 223 | 223 | 1,200 | ||
Related Allowance for Loan Losses | 22 | 22 | 120 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 6,351 | 9,369 | 7,132 | 9,370 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized, Accrual Method | 30 | 77 | 117 | 162 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 236 | 331 | 557 | 342 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized, Accrual Method | 3 | 4 | 6 | 8 | |
Commercial | Construction | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,373 | 1,373 | 1,415 | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,373 | 1,373 | 1,415 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,386 | 1,477 | 1,396 | 1,489 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized, Accrual Method | 22 | 24 | 45 | 48 | |
Consumer | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 41,981 | 41,981 | 41,002 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 46,724 | 46,724 | 45,745 | ||
Related Allowance for Loan Losses | 3,827 | 3,827 | 3,775 | ||
Recorded Investment | 41,981 | 41,981 | 41,002 | ||
Unpaid Principal Balance | 46,724 | 46,724 | 45,745 | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 41,355 | 38,979 | 41,236 | 39,028 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized, Accrual Method | 575 | 486 | 1,125 | 937 | |
Impaired Loans Average Recorded Investment | 41,355 | 38,979 | 41,236 | 39,028 | |
Impaired Loans Interest Income Recognized | 575 | 486 | 1,125 | 937 | |
Consumer | Residential Mortgage | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 20,619 | 20,619 | 21,581 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 25,362 | 25,362 | 26,324 | ||
Related Allowance for Loan Losses | 3,110 | 3,110 | 3,118 | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 20,509 | 23,148 | 20,866 | 23,974 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized, Accrual Method | 215 | 214 | 427 | 426 | |
Consumer | Home Equity | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,488 | 2,488 | 1,965 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,488 | 2,488 | 1,965 | ||
Related Allowance for Loan Losses | 276 | 276 | 276 | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 2,221 | 1,621 | 2,135 | 1,586 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized, Accrual Method | 26 | 20 | 51 | 37 | |
Consumer | Automobile | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 16,010 | 16,010 | 14,811 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 16,010 | 16,010 | 14,811 | ||
Related Allowance for Loan Losses | 328 | 328 | 305 | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 15,819 | 11,547 | 15,483 | 10,918 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized, Accrual Method | 278 | 195 | 539 | 364 | |
Consumer | Other | |||||
Impaired Loans Information: | |||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,864 | 2,864 | 2,645 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,864 | 2,864 | 2,645 | ||
Related Allowance for Loan Losses | 113 | 113 | $ 76 | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 2,806 | 2,663 | 2,752 | 2,550 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized, Accrual Method | $ 56 | $ 57 | $ 108 | $ 110 |
Loans and Leases and the Allo56
Loans and Leases and the Allowance for Loan and Lease Losses (Troubled Debt Restructuring & Narrative) (Details 6) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($)contract | Jun. 30, 2017USD ($)contract | Jun. 30, 2018USD ($)contract | Jun. 30, 2017USD ($)contract | Dec. 31, 2017USD ($) | |
Information related to loans modified as a TDR | |||||
Recorded Investment (as of period ended), TDRs that Defaulted | $ 456 | $ 404 | $ 1,137 | $ 694 | |
Recorded Investment | $ 52,600 | 52,600 | $ 60,100 | ||
Available Commitments to Lend Additional Funds on Loans Modified as TDR | $ 300 | $ 1,500 | |||
Number of Contracts | contract | 146 | 147 | 320 | 337 | |
Recorded Investment (as of period end) | $ 3,701 | $ 7,314 | $ 6,854 | $ 13,776 | |
Increase in Allowance (as of period end) | $ 123 | $ 72 | $ 181 | 138 | |
Residential Mortgage | Maximum | |||||
Information related to loans modified as a TDR | |||||
Period of Time Loan Being Fully Amortized | 40 years | ||||
Land Loan | Maximum | |||||
Information related to loans modified as a TDR | |||||
Period of Time Loan Being Fully Amortized | 360 months | ||||
Extending Balloon Payments | 5 years | ||||
Commercial | |||||
Information related to loans modified as a TDR | |||||
Recorded Investment (as of period ended), TDRs that Defaulted | $ 0 | $ 49 | |||
Number of Contracts | contract | 6 | 7 | 7 | 13 | |
Recorded Investment (as of period end) | $ 712 | $ 4,891 | $ 1,233 | $ 8,331 | |
Increase in Allowance (as of period end) | $ 48 | $ 11 | 48 | 11 | |
Commercial | Commercial and Industrial | |||||
Information related to loans modified as a TDR | |||||
Recorded Investment (as of period ended), TDRs that Defaulted | $ 0 | $ 49 | |||
Number of Contracts | contract | 6 | 6 | 7 | 11 | |
Recorded Investment (as of period end) | $ 712 | $ 4,191 | $ 1,233 | $ 7,235 | |
Increase in Allowance (as of period end) | $ 48 | $ 11 | $ 48 | $ 11 | |
Commercial | Commercial Mortgage | |||||
Information related to loans modified as a TDR | |||||
Number of Contracts | contract | 0 | 1 | 0 | 2 | |
Recorded Investment (as of period end) | $ 0 | $ 700 | $ 0 | $ 1,096 | |
Increase in Allowance (as of period end) | 0 | 0 | 0 | 0 | |
Consumer | |||||
Information related to loans modified as a TDR | |||||
Recorded Investment (as of period ended), TDRs that Defaulted | $ 456 | $ 404 | $ 1,137 | $ 645 | |
Number of Contracts | contract | 140 | 140 | 313 | 324 | |
Recorded Investment (as of period end) | $ 2,989 | $ 2,423 | $ 5,621 | $ 5,445 | |
Increase in Allowance (as of period end) | $ 75 | $ 61 | $ 133 | $ 127 | |
Consumer | Residential Mortgage | |||||
Information related to loans modified as a TDR | |||||
Number of Contracts | contract | 2 | 0 | 2 | 0 | |
Recorded Investment (as of period end) | $ 455 | $ 0 | $ 455 | $ 0 | |
Increase in Allowance (as of period end) | $ 30 | $ 0 | 30 | 0 | |
Consumer | Home Equity | |||||
Information related to loans modified as a TDR | |||||
Recorded Investment (as of period ended), TDRs that Defaulted | $ 236 | $ 0 | |||
Number of Contracts | contract | 3 | 1 | 3 | 1 | |
Recorded Investment (as of period end) | $ 545 | $ 4 | $ 545 | $ 239 | |
Increase in Allowance (as of period end) | 0 | 4 | 0 | 4 | |
Consumer | Automobile | |||||
Information related to loans modified as a TDR | |||||
Recorded Investment (as of period ended), TDRs that Defaulted | $ 289 | $ 267 | $ 606 | $ 390 | |
Number of Contracts | contract | 72 | 99 | 170 | 209 | |
Recorded Investment (as of period end) | $ 1,521 | $ 2,115 | $ 3,654 | $ 4,315 | |
Increase in Allowance (as of period end) | 31 | 49 | 75 | 99 | |
Consumer | Other | |||||
Information related to loans modified as a TDR | |||||
Recorded Investment (as of period ended), TDRs that Defaulted | $ 167 | $ 137 | $ 295 | $ 255 | |
Number of Contracts | contract | 63 | 40 | 138 | 114 | |
Recorded Investment (as of period end) | $ 468 | $ 304 | $ 967 | $ 891 | |
Increase in Allowance (as of period end) | $ 14 | $ 8 | $ 28 | $ 24 |
Loans and Leases and the Allo57
Loans and Leases and the Allowance for Loan and Lease Losses (Troubled Debt Restructuring's that Defaulted During the Period) (Details 7) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)contract | Jun. 30, 2017USD ($)contract | Jun. 30, 2018USD ($)contract | Jun. 30, 2017USD ($)contract | |
Information related to loans modified as a TDR | ||||
Number of Contracts, TDRs that Defaulted | contract | 35 | 30 | 74 | 54 |
Recorded Investment (as of period ended), TDRs that Defaulted | $ | $ 456 | $ 404 | $ 1,137 | $ 694 |
Minimum | ||||
Information related to loans modified as a TDR | ||||
Default Period Past Due Following Modification of Loans in TDR (in days) | 60 days | |||
Commercial | ||||
Information related to loans modified as a TDR | ||||
Number of Contracts, TDRs that Defaulted | contract | 0 | 1 | ||
Recorded Investment (as of period ended), TDRs that Defaulted | $ | $ 0 | $ 49 | ||
Commercial | Commercial and Industrial | ||||
Information related to loans modified as a TDR | ||||
Number of Contracts, TDRs that Defaulted | contract | 0 | 1 | ||
Recorded Investment (as of period ended), TDRs that Defaulted | $ | $ 0 | $ 49 | ||
Consumer | ||||
Information related to loans modified as a TDR | ||||
Number of Contracts, TDRs that Defaulted | contract | 35 | 30 | 74 | 53 |
Recorded Investment (as of period ended), TDRs that Defaulted | $ | $ 456 | $ 404 | $ 1,137 | $ 645 |
Consumer | Home Equity | ||||
Information related to loans modified as a TDR | ||||
Number of Contracts, TDRs that Defaulted | contract | 1 | 0 | ||
Recorded Investment (as of period ended), TDRs that Defaulted | $ | $ 236 | $ 0 | ||
Consumer | Automobile | ||||
Information related to loans modified as a TDR | ||||
Number of Contracts, TDRs that Defaulted | contract | 14 | 12 | 32 | 17 |
Recorded Investment (as of period ended), TDRs that Defaulted | $ | $ 289 | $ 267 | $ 606 | $ 390 |
Consumer | Other | ||||
Information related to loans modified as a TDR | ||||
Number of Contracts, TDRs that Defaulted | contract | 21 | 18 | 41 | 36 |
Recorded Investment (as of period ended), TDRs that Defaulted | $ | $ 167 | $ 137 | $ 295 | $ 255 |
Loans and Leases and the Allo58
Loans and Leases and the Allowance for Loan and Lease Losses (Foreclosure Proceedings Narrative) (Details 8) $ in Millions | Jun. 30, 2018USD ($) |
Loans and Leases and Allowance for Loan and Lease Losses [Abstract] | |
Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure | $ 3.9 |
Mortgage Servicing Rights (Narr
Mortgage Servicing Rights (Narrative) (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Transfers and Servicing of Financial Assets [Abstract] | |||||
Residential mortgage loans serviced for third parties | $ 2,900 | $ 2,900 | $ 2,900 | ||
Servicing income, including late and ancillary fees | $ 1.8 | $ 1.8 | $ 3.6 | $ 3.5 |
Mortgage Servicing Rights (Fair
Mortgage Servicing Rights (Fair value method rollforward) (Details 2) - Mortgage Servicing Rights - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Mortgage servicing rights accounted for under the fair value measurement method [Rollforward] | ||||
Balance at Beginning of Period | $ 1,404 | $ 1,586 | $ 1,454 | $ 1,655 |
Due to Payoffs | (38) | (38) | (88) | (107) |
Total Changes in Fair Value of Mortgage Servicing Rights | (38) | (38) | (88) | (107) |
Balance at End of Period | $ 1,366 | $ 1,548 | $ 1,366 | $ 1,548 |
Mortgage Servicing Rights (Amor
Mortgage Servicing Rights (Amortization method rollforward) (Details 3) - Mortgage Servicing Rights - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Servicing Asset at Amortized Cost [Line Items] | ||||||||
Valuation Allowance for Impairment of Recognized Servicing Assets, Balance | $ 0 | $ 53 | $ 0 | $ 53 | $ 0 | $ 0 | $ 0 | $ 0 |
Valuation Allowance for Impairment of Recognized Servicing Assets, Additions (Deductions) for Expenses (Recoveries) | 0 | 53 | 0 | 53 | ||||
Mortgage Servicing Rights Accounted for Under the Amortization Method {Rollforward) | ||||||||
Balance at Beginning of Period | 23,089 | 22,705 | 23,168 | 22,008 | ||||
Servicing Rights that Resulted From Asset Transfers | 775 | 961 | 1,396 | 2,276 | ||||
Amortization | (647) | (690) | (1,347) | (1,308) | ||||
Balance at End of Period | 23,217 | 22,923 | 23,217 | 22,923 | ||||
Fair Value of Mortgage Servicing Rights Accounted for Under the Amortization Method | ||||||||
Beginning of Period | 28,600 | 25,946 | 26,716 | 25,148 | ||||
End of Period | $ 29,746 | $ 25,479 | $ 29,746 | $ 25,479 |
Mortgage Servicing Rights (Key
Mortgage Servicing Rights (Key assumptions) (Details 4) - Mortgage Servicing Rights | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Key data and assumptions used in estimating the fair value of mortgage servicing rights | ||
Weighted-Average Constant Prepayment Rate (as a percent) | 6.45% | 8.50% |
Weighted-Average Life (in years) | 8 years 1 month 16 days | 7 years 1 month 1 day |
Weighted-Average Note Rate (as a percent) | 4.04% | 4.04% |
Weighted-Average Discount Rate (as a percent) | 9.76% | 8.87% |
Mortgage Servicing Rights (Sens
Mortgage Servicing Rights (Sensitivity analysis) (Details 5) - Mortgage Servicing Rights - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Constant Prepayment Rate | ||
Decrease in fair value from 25 basis points (“bps”) adverse change | $ (380) | $ (332) |
Decrease in fair value from 50 bps adverse change | (756) | (657) |
Discount Rate | ||
Decrease in fair value from 25 bps adverse change | (332) | (289) |
Decrease in fair value from 50 bps adverse change | $ (658) | $ (572) |
Low Income Housing Tax Credit64
Low Income Housing Tax Credit Partnerships (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Affordable Housing Tax Credit Investments, Unfunded Commitment [Abstract] | ||||||
2,018 | $ 8,802 | $ 8,802 | ||||
2,019 | 4,126 | 4,126 | ||||
2,020 | 85 | 85 | ||||
2,021 | 45 | 45 | ||||
2,022 | 56 | 56 | ||||
Thereafter | 680 | 680 | ||||
Total Unfunded Commitments | 13,794 | 13,794 | ||||
Effective Yield Method | ||||||
Tax credits and other tax benefits recognized | 3,380 | $ 3,439 | 6,812 | $ 6,869 | ||
Amortization Expense in Provision for Income Taxes | 2,078 | 2,137 | 4,155 | 4,298 | ||
Proportional Amortization Method | ||||||
Tax credits and other tax benefits recognized | 410 | 440 | 820 | 761 | ||
Amortization Expense in Provision for Income Taxes | 333 | $ 358 | 666 | 611 | ||
Net affordable housing tax credit investments and related unfunded commitments | $ 68,900 | 68,900 | $ 71,700 | |||
Write down from impairment of LIHTC Investments | 0 | $ 0 | ||||
Low income housing investment partnerships basis adjustments, provision income tax expense | $ 2,000 | $ 2,000 |
Balance Sheet Offsetting (Repos
Balance Sheet Offsetting (Repos - by maturity date and collateral type) (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | $ 504,193 | $ 505,293 |
Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 677 | 312,876 |
Debt Securities Issued by States and Political Subdivisions | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 3,603 | 3,790 |
Mortgage-Backed Securities: Residential - Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 404,068 | 101,256 |
Mortgage-Backed Securities: Residential - U.S. Government-Sponsored Enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 95,845 | 87,371 |
Maturity Up To 90 Days [Member] | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 1,000 | 2,703 |
Maturity Up To 90 Days [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Maturity Up To 90 Days [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 1,000 | 1,200 |
Maturity Up To 90 Days [Member] | Mortgage-Backed Securities: Residential - Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | 1,503 |
Maturity Up To 90 Days [Member] | Mortgage-Backed Securities: Residential - U.S. Government-Sponsored Enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Maturity 91 To 365 Days [Member] | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 3,193 | 2,590 |
Maturity 91 To 365 Days [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 677 | 0 |
Maturity 91 To 365 Days [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 1,690 | 2,590 |
Maturity 91 To 365 Days [Member] | Mortgage-Backed Securities: Residential - Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Maturity 91 To 365 Days [Member] | Mortgage-Backed Securities: Residential - U.S. Government-Sponsored Enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 826 | 0 |
Maturity 1 To 3 Years [Member] | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 275,000 | 150,000 |
Maturity 1 To 3 Years [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | 110,392 |
Maturity 1 To 3 Years [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 913 | 0 |
Maturity 1 To 3 Years [Member] | Mortgage-Backed Securities: Residential - Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 203,361 | 18,793 |
Maturity 1 To 3 Years [Member] | Mortgage-Backed Securities: Residential - U.S. Government-Sponsored Enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 70,726 | 20,815 |
Maturity After 3 Years [Member] | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 225,000 | 350,000 |
Maturity After 3 Years [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | 202,484 |
Maturity After 3 Years [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Maturity After 3 Years [Member] | Mortgage-Backed Securities: Residential - Government Agencies | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | 200,707 | 80,960 |
Maturity After 3 Years [Member] | Mortgage-Backed Securities: Residential - U.S. Government-Sponsored Enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Securities Sold under Agreements to Repurchase | $ 24,293 | $ 66,556 |
Balance Sheet Offsetting (Asset
Balance Sheet Offsetting (Assets and liabilities subject to MNA, or repurchase agreements) (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | $ 504,193 | $ 505,293 |
Repurchase Agreements, Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Repurchase Agreements, Net Amounts of Liabilities Presented in the Statements of Condition | 504,193 | 505,293 |
Repurchase Agreements, Fair Value of Collateral Pledged | 504,193 | 505,293 |
Securities Sold under Agreements to Repurchase, Net Amount Offset Against Collateral | 0 | 0 |
Interest Rate Swap Agreements | ||
Offsetting Assets and Liabilities [Line items] | ||
Net liability positions, aggregate fair value | 100 | 3,200 |
Institutional Counterparties | Interest Rate Swap Agreements | ||
Offsetting Assets and Liabilities [Line items] | ||
Derivative Liability, Fair Value of Collateral | 0 | 3,500 |
Assets: | ||
Gross Amounts of Recognized Assets | 12,569 | 5,453 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statements of Condition | 12,569 | 5,453 |
Netting Adjustments per Master Netting Arrangements | 1,391 | 4,017 |
Gross Amounts Not Offset in the Statements of Condition - FV of collateral pledged | (1,522) | 0 |
Derivative Assets, Net Amount | 9,656 | 1,436 |
Liabilities: | ||
Gross Amounts of Recognized Liabilities | 1,391 | 4,017 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statements of Condition | 1,391 | 4,017 |
Derivative Liability, Netting Adjustments per Master Netting Arrangements | 1,391 | 4,017 |
Derivative, Collateral, Right to Reclaim Securities | 0 | 0 |
Derivative Liabilities, Net Amount | 0 | 0 |
Private Institutions | ||
Offsetting Assets and Liabilities [Line items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 539,400 | 563,300 |
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | 500,000 | 500,000 |
Repurchase Agreements, Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Repurchase Agreements, Net Amounts of Liabilities Presented in the Statements of Condition | 500,000 | 500,000 |
Repurchase Agreements, Fair Value of Collateral Pledged | 500,000 | 500,000 |
Securities Sold under Agreements to Repurchase, Net Amount Offset Against Collateral | 0 | 0 |
Government Entities | ||
Offsetting Assets and Liabilities [Line items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 6,900 | 6,900 |
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | 4,193 | 5,293 |
Repurchase Agreements, Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Repurchase Agreements, Net Amounts of Liabilities Presented in the Statements of Condition | 4,193 | 5,293 |
Repurchase Agreements, Fair Value of Collateral Pledged | 4,193 | 5,293 |
Securities Sold under Agreements to Repurchase, Net Amount Offset Against Collateral | $ 0 | $ 0 |
Accumulated Other Comprehensi67
Accumulated Other Comprehensive Income (Loss) (AOCI Components Pre Post & Tax Effect) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Comprehensive Income (Loss), Before Tax: | ||||
Net Unrealized Gains (Losses) Arising During the Period | $ (4,622) | $ 4,642 | $ (17,679) | $ 12,222 |
Amortization of Unrealized Holding (Gains) Losses on HTM Securities | 578 | 491 | 1,237 | 995 |
Net Unrealized Gains (Losses) on Investment Securities | (4,044) | 5,133 | (16,442) | 13,217 |
Amortization of Net Actuarial Losses (Gains) | 436 | 322 | 872 | 645 |
Amortization of Prior Service Credit | (142) | (80) | (284) | (161) |
Defined Benefit Plans, Net | 294 | 242 | 588 | 484 |
Other Comprehensive Income (Loss) | (3,750) | 5,375 | (15,854) | 13,701 |
Other Comprehensive Income (Loss), Tax Effect: | ||||
Net Unrealized Gains (Losses) Arising During the Period | (1,223) | 1,833 | (4,675) | 4,824 |
Amortization of Unrealized Holding (Gains) Losses on HTM Securities | 153 | 194 | 328 | 393 |
Net Unrealized Gains (Losses) on Investment Securities | (1,070) | 2,027 | (4,347) | 5,217 |
Amortization of Net Actuarial Losses (Gains) | 116 | 127 | 232 | 255 |
Amortization of Prior Service Credit | (38) | (32) | (76) | (64) |
Defined Benefit Plans, Net | 78 | 95 | 156 | 191 |
Other Comprehensive Income (Loss) | (992) | 2,122 | (4,191) | 5,408 |
Other Comprehensive Income (Loss), Net of Tax: | ||||
Net Unrealized Gains (Losses) Arising During the Period | (3,399) | 2,809 | (13,004) | 7,398 |
Amortization of Unrealized Holding (Gains) Losses on HTM Securities | 425 | 297 | 909 | 602 |
Net Unrealized Gains (Losses) on Investment Securities | (2,974) | 3,106 | (12,095) | 8,000 |
Amortization of Net Actuarial Losses (Gains) | 320 | 195 | 640 | 390 |
Amortization of Prior Service Credit | (104) | (48) | (208) | (97) |
Defined Benefit Plans, Net | 216 | 147 | 432 | 293 |
Total Other Comprehensive Income (Loss) | $ (2,758) | $ 3,253 | $ (11,663) | $ 8,293 |
Accumulated Other Comprehensi68
Accumulated Other Comprehensive Income (Loss) (Change in AOCI Components net of tax) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | $ 1,231,868 | $ 1,161,537 | ||
Total Other Comprehensive Income (Loss) | $ (2,758) | $ 3,253 | (11,663) | 8,293 |
Reclassification of the Income Tax Effect of the Tax Reform from AOCI to RE | 0 | |||
Balance at End of Period | 1,247,717 | 1,213,757 | 1,247,717 | 1,213,757 |
Defined Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | (33,468) | (28,746) | (27,715) | (28,892) |
Other Comprehensive Income (Loss) Before Reclassifications | 0 | 0 | 0 | 0 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 216 | 147 | 432 | 293 |
Total Other Comprehensive Income (Loss) | 216 | 147 | 432 | 293 |
Reclassification of the Income Tax Effect of the Tax Reform from AOCI to RE | (5,969) | |||
Balance at End of Period | (33,252) | (28,599) | (33,252) | (28,599) |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | (51,097) | (28,866) | (34,715) | (33,906) |
Other Comprehensive Income (Loss) Before Reclassifications | (3,399) | 2,809 | (13,004) | 7,398 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 641 | 444 | 1,341 | 895 |
Total Other Comprehensive Income (Loss) | (2,758) | 3,253 | (11,663) | 8,293 |
Reclassification of the Income Tax Effect of the Tax Reform from AOCI to RE | (7,477) | |||
Balance at End of Period | (53,855) | (25,613) | (53,855) | (25,613) |
Available-for-sale Securities | Unrealized Gains and Losses on Net Investment Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | (11,932) | 5,859 | (1,915) | 1,270 |
Other Comprehensive Income (Loss) Before Reclassifications | (3,399) | 2,809 | (13,004) | 7,398 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Total Other Comprehensive Income (Loss) | (3,399) | 2,809 | (13,004) | 7,398 |
Reclassification of the Income Tax Effect of the Tax Reform from AOCI to RE | 412 | |||
Balance at End of Period | (15,331) | 8,668 | (15,331) | 8,668 |
Held-to-maturity Securities | Unrealized Gains and Losses on Net Investment Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | (5,697) | (5,979) | (5,085) | (6,284) |
Other Comprehensive Income (Loss) Before Reclassifications | 0 | 0 | 0 | 0 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 425 | 297 | 909 | 602 |
Total Other Comprehensive Income (Loss) | 425 | 297 | 909 | 602 |
Reclassification of the Income Tax Effect of the Tax Reform from AOCI to RE | (1,096) | |||
Balance at End of Period | $ (5,272) | $ (5,682) | $ (5,272) | $ (5,682) |
Accumulated Other Comprehensi69
Accumulated Other Comprehensive Income (Loss) (AOCI Reclass to IS) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries and Benefits | $ (52,148) | $ (49,676) | $ (106,570) | $ (100,841) |
Tax Benefit (Expense) | (12,785) | (20,414) | (23,227) | (42,058) |
Net Income | 54,718 | 44,662 | 108,758 | 95,838 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net Income | (641) | (444) | (1,341) | (895) |
Amortization of Unrealized Gains(Losses) of Investment Securities Transferred from AFS to HTM | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest Income | (578) | (491) | (1,237) | (995) |
Tax Benefit (Expense) | 153 | 194 | 328 | 393 |
Net Income | (425) | (297) | (909) | (602) |
Amortization of Defined Benefit Pension Items | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries and Benefits | (294) | (242) | (588) | (484) |
Tax Benefit (Expense) | 78 | 95 | 156 | 191 |
Net Income | (216) | (147) | (432) | (293) |
Prior Service Credit | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries and Benefits | 142 | 80 | 284 | 161 |
Net Actuarial Losses | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries and Benefits | $ (436) | $ (322) | $ (872) | $ (645) |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of Diluted Shares | ||||
Denominator for Basic Earnings Per Share (in shares) | 41,884,221 | 42,353,976 | 41,960,743 | 42,379,730 |
Dilutive Effect of Equity Based Awards (in shares) | 267,979 | 304,909 | 292,157 | 324,280 |
Denominator for Diluted Earnings Per Share (in shares) | 42,152,200 | 42,658,885 | 42,252,900 | 42,704,010 |
Antidilutive Stock Options and Restricted Stock Outstanding (in shares) | 1,293 | 7,127 | 1,293 | 0 |
Business Segments (Business Seg
Business Segments (Business Segments Financial Information and Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)atmbranch | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Business segment financial information | |||||
Federal and State effective tax rate used for segment reporting | 26.00% | ||||
Net Interest Income | $ 120,496 | $ 112,279 | $ 239,452 | $ 222,151 | |
Provision for Credit Losses | 3,500 | 4,250 | 7,625 | 8,650 | |
Net Interest Income After Provision for Credit Losses | 116,996 | 108,029 | 231,827 | 213,501 | |
Noninterest Income | 41,298 | 45,236 | 85,333 | 101,152 | |
Noninterest Expense | (90,791) | (88,189) | (185,175) | (176,757) | |
Income Before Provision for Income Taxes | 67,503 | 65,076 | 131,985 | 137,896 | |
Provision for Income Taxes | (12,785) | (20,414) | (23,227) | (42,058) | |
Net Income | 54,718 | 44,662 | 108,758 | 95,838 | |
Total Assets | 17,124,162 | 16,981,292 | $ 17,124,162 | 16,981,292 | $ 17,089,052 |
Retail Banking | |||||
Business segment financial information | |||||
Number of branch locations through which products and services are delivered to customers | branch | 69 | ||||
Number of ATM's through which products and services are delivered to customers | atm | 385 | ||||
Net Interest Income | 65,683 | 66,348 | $ 130,080 | 131,505 | |
Provision for Credit Losses | 3,445 | 3,099 | 7,188 | 6,900 | |
Net Interest Income After Provision for Credit Losses | 62,238 | 63,249 | 122,892 | 124,605 | |
Noninterest Income | 19,598 | 21,920 | 38,851 | 42,845 | |
Noninterest Expense | (51,939) | (52,018) | (106,538) | (104,278) | |
Income Before Provision for Income Taxes | 29,897 | 33,151 | 55,205 | 63,172 | |
Provision for Income Taxes | (7,473) | (11,741) | (13,764) | (22,415) | |
Net Income | 22,424 | 21,410 | 41,441 | 40,757 | |
Total Assets | 6,142,457 | 5,626,767 | 6,142,457 | 5,626,767 | |
Commercial Banking | |||||
Business segment financial information | |||||
Net Interest Income | 44,010 | 41,737 | 86,908 | 83,668 | |
Provision for Credit Losses | (194) | (132) | (345) | (320) | |
Net Interest Income After Provision for Credit Losses | 44,204 | 41,869 | 87,253 | 83,988 | |
Noninterest Income | 5,512 | 5,876 | 11,154 | 11,314 | |
Noninterest Expense | (19,858) | (18,407) | (40,190) | (36,762) | |
Income Before Provision for Income Taxes | 29,858 | 29,338 | 58,217 | 58,540 | |
Provision for Income Taxes | (6,740) | (10,325) | (13,564) | (20,581) | |
Net Income | 23,118 | 19,013 | 44,653 | 37,959 | |
Total Assets | 3,799,535 | 3,658,867 | 3,799,535 | 3,658,867 | |
Investment Services and Private Banking | |||||
Business segment financial information | |||||
Net Interest Income | 10,526 | 6,714 | 20,413 | 13,364 | |
Provision for Credit Losses | 0 | (6) | (60) | (11) | |
Net Interest Income After Provision for Credit Losses | 10,526 | 6,720 | 20,473 | 13,375 | |
Noninterest Income | 14,745 | 15,247 | 28,415 | 29,796 | |
Noninterest Expense | (16,400) | (15,295) | (32,607) | (30,766) | |
Income Before Provision for Income Taxes | 8,871 | 6,672 | 16,281 | 12,405 | |
Provision for Income Taxes | (2,338) | (2,469) | (4,292) | (4,590) | |
Net Income | 6,533 | 4,203 | 11,989 | 7,815 | |
Total Assets | 342,464 | 307,529 | 342,464 | 307,529 | |
Treasury and Other | |||||
Business segment financial information | |||||
Net Interest Income | 277 | (2,520) | 2,051 | (6,386) | |
Provision for Credit Losses | 249 | 1,289 | 842 | 2,081 | |
Net Interest Income After Provision for Credit Losses | 28 | (3,809) | 1,209 | (8,467) | |
Noninterest Income | 1,443 | 2,193 | 6,913 | 17,197 | |
Noninterest Expense | (2,594) | (2,469) | (5,840) | (4,951) | |
Income Before Provision for Income Taxes | (1,123) | (4,085) | 2,282 | 3,779 | |
Provision for Income Taxes | 3,766 | 4,121 | 8,393 | 5,528 | |
Net Income | 2,643 | 36 | 10,675 | 9,307 | |
Total Assets | $ 6,839,706 | $ 7,388,129 | $ 6,839,706 | $ 7,388,129 |
Pension Plans and Postretirem72
Pension Plans and Postretirement Benefit Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Benefits | ||||
Net periodic benefit cost for pension plans and the postretirement benefit plan | ||||
Service Cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Cost | 1,041 | 1,161 | 2,082 | 2,322 |
Expected Return on Plan Assets | (1,282) | (1,238) | (2,564) | (2,476) |
Amortization of Prior Service Credit | 0 | 0 | 0 | 0 |
Amortization of Net Actuarial Losses (Gains) | 498 | 432 | 996 | 865 |
Net Periodic Benefit Cost | 257 | 355 | 514 | 711 |
Employer Contributions | 100 | 200 | ||
Estimated Future Employer Contributions in Current Fiscal Year | 500 | 500 | ||
Postretirement Benefits | ||||
Net periodic benefit cost for pension plans and the postretirement benefit plan | ||||
Service Cost | 115 | 123 | 230 | 246 |
Interest Cost | 236 | 272 | 471 | 544 |
Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Amortization of Prior Service Credit | (142) | (80) | (284) | (161) |
Amortization of Net Actuarial Losses (Gains) | (62) | (110) | (124) | (220) |
Net Periodic Benefit Cost | 147 | $ 205 | 293 | $ 409 |
Employer Contributions | 300 | 500 | ||
Estimated Future Employer Contributions in Current Fiscal Year | $ 900 | $ 900 |
Derivative Financial Instrume73
Derivative Financial Instruments (Notional Amounts) (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Interest Rate Lock Commitments | ||
Derivative [Line Items] | ||
Notional Amount | $ 31,298 | $ 35,422 |
Fair Value | 707 | 789 |
Forward Commitments | ||
Derivative [Line Items] | ||
Notional Amount | 33,336 | 45,143 |
Fair Value | (115) | (56) |
Receive Fixed / Pay Variable Swap | ||
Derivative [Line Items] | ||
Notional Amount | 453,275 | 374,670 |
Fair Value | (11,494) | (1,331) |
Pay Fixed / Receive Variable Swap | ||
Derivative [Line Items] | ||
Notional Amount | 453,275 | 374,670 |
Fair Value | 11,178 | 1,436 |
Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Notional Amount | 48,305 | 54,332 |
Fair Value | (241) | (13) |
Visa Conversion Rate Swap Agreement | ||
Derivative [Line Items] | ||
Notional Amount | 81,058 | 70,571 |
Fair Value | $ (1,000) | $ 0 |
Derivative Financial Instrume74
Derivative Financial Instruments (Assets and liabilities) (Details 2) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Derivative Financial Instruments Not Designated as Hedging Instruments | |||||
Net gains (losses) recognized in the statements of income | $ 1,835,000 | $ 2,511,000 | $ 4,132,000 | $ 4,559,000 | |
Asset Derivatives | 15,212,000 | 15,212,000 | $ 10,518,000 | ||
Liability Derivatives | 16,177,000 | 16,177,000 | 9,693,000 | ||
Interest Rate Lock Commitments | |||||
Derivative Financial Instruments Not Designated as Hedging Instruments | |||||
Asset Derivatives | 708,000 | 708,000 | 789,000 | ||
Liability Derivatives | 1,000 | 1,000 | 0 | ||
Forward Commitments | |||||
Derivative Financial Instruments Not Designated as Hedging Instruments | |||||
Asset Derivatives | 10,000 | 10,000 | 14,000 | ||
Liability Derivatives | 125,000 | 125,000 | 70,000 | ||
Interest Rate Swap Agreements | |||||
Derivative Financial Instruments Not Designated as Hedging Instruments | |||||
Asset Derivatives | 14,422,000 | 14,422,000 | 9,583,000 | ||
Liability Derivatives | 14,738,000 | 14,738,000 | 9,478,000 | ||
Foreign Exchange Contracts | |||||
Derivative Financial Instruments Not Designated as Hedging Instruments | |||||
Asset Derivatives | 72,000 | 72,000 | 132,000 | ||
Liability Derivatives | 313,000 | 313,000 | 145,000 | ||
Visa Conversion Rate Swap Agreement | |||||
Derivative Financial Instruments Not Designated as Hedging Instruments | |||||
Asset Derivatives | 0 | 0 | 0 | ||
Liability Derivatives | 1,000,000 | 1,000,000 | $ 0 | ||
Gain (Loss) on Investments [Member] | Visa Conversion Rate Swap Agreement | |||||
Derivative Financial Instruments Not Designated as Hedging Instruments | |||||
Net gains (losses) recognized in the statements of income | $ (1,000,000) | $ 0 | $ (1,000,000) | $ 0 |
Derivative Financial Instrume75
Derivative Financial Instruments (Net gains or losses) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recognized in the statements of income | $ 1,835 | $ 2,511 | $ 4,132 | $ 4,559 |
Interest Rate Lock Commitments | Mortgage Banking Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recognized in the statements of income | 968 | 1,655 | 1,498 | 2,922 |
Forward Commitments | Mortgage Banking Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recognized in the statements of income | 240 | (465) | 925 | (889) |
Interest Rate Swap Agreements | Other Noninterest Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recognized in the statements of income | 632 | 525 | 750 | 680 |
Foreign Exchange Contracts | Other Noninterest Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recognized in the statements of income | $ 995 | $ 796 | $ 1,959 | $ 1,846 |
Derivative Financial Instrume76
Derivative Financial Instruments (Narrative) (Details 4) | Jun. 28, 2018 | Jun. 27, 2018 | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Derivative [Line Items] | ||||
Liability Derivatives | $ 16,177,000 | $ 9,693,000 | ||
Visa Conversion Rate Swap Agreement | ||||
Derivative [Line Items] | ||||
Liability Derivatives | 1,000,000 | $ 0 | ||
Visa Conversion Rate Swap Agreement | ||||
Derivative [Line Items] | ||||
Liability Derivatives | $ 0 | |||
Visa Conversion Rate Swap Agreement | ||||
Derivative [Line Items] | ||||
Debt Instrument, Convertible, Conversion Ratio | 1.6298 | 1.6483 |
Commitments, Contingencies, a77
Commitments, Contingencies, and Guarantees (Credit Commitments) (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Credit Commitments [Line Items] | ||
Credit Commitments | $ 2,947,171 | $ 2,859,279 |
Unfunded Commitments to Extend Credit | ||
Credit Commitments [Line Items] | ||
Credit Commitments | 2,869,256 | 2,780,724 |
Standby Letters of Credit | ||
Credit Commitments [Line Items] | ||
Credit Commitments | 64,857 | 60,519 |
Commercial Letters of Credit | ||
Credit Commitments [Line Items] | ||
Credit Commitments | $ 13,058 | $ 18,036 |
Commitments, Contingencies, a78
Commitments, Contingencies, and Guarantees (Narrative) (Details 2) - Residential Mortgage $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)Loan | |
Representations and Warranties [Line Items] | |
Continuing Involvement with Transferred Financial Assets, Principal Amount Outstanding | $ | $ 2,700 |
Number of Mortgage Loans Repurchased | 5 |
Unpaid principal balance of repurchased mortgage loans | $ | $ 1.2 |
Number of Mortgage Loans Repurchased, Pending | 0 |
Number of Mortgage Loans Repurchased due to Loan Servicing Activities | 0 |
Number of Mortgage Loans Repurchased due to Loan Servicing Activities, Pending | 0 |
Current Residential Mortgage Loans Serviced for Third Parties as Percentage of Total | 99.00% |
Fair Value of Assets and Liab79
Fair Value of Assets and Liabilities (Narrative) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Liability Derivatives | $ 16,177,000 | $ 9,693,000 |
Visa Conversion Rate Swap Agreement | ||
Derivative [Line Items] | ||
Liability Derivatives | $ 1,000,000 | $ 0 |
Fair Value of Assets and Liab80
Fair Value of Assets and Liabilities (Fair value on recurring basis) (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Available-for-Sale: Fair Value | $ 2,092,870 | $ 2,232,979 |
Loans Held for Sale | 16,025 | 19,231 |
Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale: Fair Value | 592,601 | 627,019 |
Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale: Fair Value | 223,777 | 266,111 |
Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale: Fair Value | 831,780 | 913,919 |
Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 210,696 | 235,360 |
Residential - U.S. Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 559,868 | 609,812 |
Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 61,216 | 68,747 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Available-for-Sale: Fair Value | 2,092,870 | 2,232,979 |
Loans Held for Sale | 16,025 | 19,231 |
Mortgage Servicing Rights | 1,366 | 1,454 |
Other Assets | 32,400 | 29,230 |
Derivatives | 15,212 | 10,518 |
Total Assets Measured at Fair Value on a Recurring Basis | 2,157,873 | 2,293,412 |
Liabilites: | ||
Derivatives | 16,177 | 9,693 |
Total Liabilities Measured at Fair Value on a Recurring Basis | 16,177 | 9,693 |
Fair Value, Measurements, Recurring | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 444,712 | 425,930 |
Fair Value, Measurements, Recurring | Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale: Fair Value | 592,601 | 627,019 |
Fair Value, Measurements, Recurring | Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale: Fair Value | 223,777 | 266,111 |
Fair Value, Measurements, Recurring | Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale: Fair Value | 831,780 | 913,919 |
Fair Value, Measurements, Recurring | Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 210,696 | 235,360 |
Fair Value, Measurements, Recurring | Residential - U.S. Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 559,868 | 609,812 |
Fair Value, Measurements, Recurring | Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 61,216 | 68,747 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ||
Assets: | ||
Available-for-Sale: Fair Value | 535 | 538 |
Loans Held for Sale | 0 | 0 |
Mortgage Servicing Rights | 0 | 0 |
Other Assets | 32,400 | 29,230 |
Derivatives | 0 | 0 |
Total Assets Measured at Fair Value on a Recurring Basis | 32,935 | 29,768 |
Liabilites: | ||
Derivatives | 0 | 0 |
Total Liabilities Measured at Fair Value on a Recurring Basis | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 535 | 538 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Residential - U.S. Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Available-for-Sale: Fair Value | 2,092,335 | 2,232,441 |
Loans Held for Sale | 16,025 | 19,231 |
Mortgage Servicing Rights | 0 | 0 |
Other Assets | 0 | 0 |
Derivatives | 82 | 146 |
Total Assets Measured at Fair Value on a Recurring Basis | 2,108,442 | 2,251,818 |
Liabilites: | ||
Derivatives | 1,438 | 215 |
Total Liabilities Measured at Fair Value on a Recurring Basis | 1,438 | 215 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 444,177 | 425,392 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale: Fair Value | 592,601 | 627,019 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale: Fair Value | 223,777 | 266,111 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale: Fair Value | 831,780 | 913,919 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 210,696 | 235,360 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential - U.S. Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 559,868 | 609,812 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 61,216 | 68,747 |
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Loans Held for Sale | 0 | 0 |
Mortgage Servicing Rights | 1,366 | 1,454 |
Other Assets | 0 | 0 |
Derivatives | 15,130 | 10,372 |
Total Assets Measured at Fair Value on a Recurring Basis | 16,496 | 11,826 |
Liabilites: | ||
Derivatives | 14,739 | 9,478 |
Total Liabilities Measured at Fair Value on a Recurring Basis | 14,739 | 9,478 |
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Residential - U.S. Government-Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale: Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale: Fair Value | $ 0 | $ 0 |
Fair Value of Assets and Liab81
Fair Value of Assets and Liabilities (FV on recurring basis-Level 3 rollforward) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Mortgage Servicing Rights Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Fair Value, Mortgage Servicing Rights, Beginning Balance | $ 1,404 | $ 1,586 | $ 1,454 | $ 1,655 |
Fair Value, Mortgage Servicing Rights, Realized and Unrealized Net Gains (Losses) Included in Net Income | (38) | (38) | (88) | (107) |
Fair Value, Mortgage Servicing Rights, Ending Balance | 1,366 | 1,548 | 1,366 | 1,548 |
Fair Value, Mortgage Service Rights, Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Fair Value, Net Derivative Assets and Liabilities, Beginning Balance | 547 | 1,248 | 894 | 1,053 |
Fair Value, Net Derivative Assets and Liabilities, Realized and Unrealized Net Gains (Losses) Included in Net Income | 968 | 1,640 | 1,505 | 2,908 |
Fair Value, Net Derivative Assets and Liabilities, Transfers to Loans Held for Sale | (1,198) | (1,877) | (1,580) | (2,950) |
Variation margin payments for swap liabilities | (74) | (358) | (428) | 358 |
Fair Value, Net Derivative Assets and Liabilities, Ending Balance | 391 | 1,369 | 391 | 1,369 |
Fair Value, Net Derivative Assets and Liabilities,Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held | $ 391 | $ 1,369 | $ 391 | $ 1,369 |
Fair Value of Assets and Liab82
Fair Value of Assets and Liabilities (FV on recurring or nonrecurring basis-level 3 inputs) (Details 3) $ in Thousands | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Interest Rate Lock Commitments | Pricing Model | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ 707 | $ 789 |
Interest Rate Swap Agreements | Discounted Cash Flow | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | (316) | 105 |
Mortgage Servicing Rights | Discounted Cash Flow | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Mortgage Servicing Rights, at Fair Value | $ 31,112 | $ 28,170 |
Significant Other Unobservable Inputs (Level 3) | Interest Rate Lock Commitments | Pricing Model | Weighted Average Closing Ratio (as a percent) | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Fair Value Inputs | 0.9195 | 0.9325 |
Significant Other Unobservable Inputs (Level 3) | Interest Rate Swap Agreements | Discounted Cash Flow | Weighted Average Credit Factor (as a percent) | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Fair Value Inputs | 0.0002 | 0.0010 |
Significant Other Unobservable Inputs (Level 3) | Mortgage Servicing Rights | Discounted Cash Flow | Weighted Average Constant Prepayment Rate (as a percent) | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Mortgage Servicing Rights, Fair Value Inputs | 0.0645 | 0.0850 |
Significant Other Unobservable Inputs (Level 3) | Weighted Average Discount Rate (as a percent) | Discounted Cash Flow | Weighted Average Discount Rate (as a percent) | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Mortgage Servicing Rights, Fair Value Inputs | 0.0976 | 0.0887 |
Fair Value of Assets and Liab83
Fair Value of Assets and Liabilities (FV option) (Details 5) - Residential mortgage loans held for sale - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value Option | ||
Aggregate Fair Value | $ 16,025 | $ 19,231 |
Aggregate Unpaid Principal | 15,669 | 18,854 |
Aggregate Fair Value Less Aggregate Unpaid Principal | $ 356 | $ 377 |
Fair Value of Assets and Liab84
Fair Value of Assets and Liabilities (Financial instruments not recorded at FV on recurring basis) (Details 6) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | $ 3,500,497 | $ 3,894,121 |
Carrying Amount | ||
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | 3,595,891 | 3,928,170 |
Loans | 9,688,883 | 9,436,506 |
Financial Instruments - Liabilities | ||
Time Deposits | 1,713,323 | 1,688,092 |
Securities Sold Under Agreements to Repurchase | 504,193 | 505,293 |
Other Debt | 225,000 | 250,000 |
Fair Value | ||
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | 3,500,497 | 3,894,121 |
Loans | 9,577,141 | 9,519,369 |
Financial Instruments - Liabilities | ||
Time Deposits | 1,699,097 | 1,679,684 |
Securities Sold Under Agreements to Repurchase | 504,167 | 505,278 |
Other Debt | 223,424 | 248,520 |
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | 362,782 | 373,640 |
Loans | 0 | 0 |
Financial Instruments - Liabilities | ||
Time Deposits | 0 | 0 |
Securities Sold Under Agreements to Repurchase | 0 | 0 |
Other Debt | 0 | 0 |
Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | 3,137,715 | 3,520,481 |
Loans | 0 | 0 |
Financial Instruments - Liabilities | ||
Time Deposits | 1,699,097 | 1,679,684 |
Securities Sold Under Agreements to Repurchase | 504,167 | 505,278 |
Other Debt | 223,424 | 248,520 |
Fair Value | Significant Other Unobservable Inputs (Level 3) | ||
Financial Instruments - Assets | ||
Held-to-Maturity: Fair Value | 0 | 0 |
Loans | 9,577,141 | 9,519,369 |
Financial Instruments - Liabilities | ||
Time Deposits | 0 | 0 |
Securities Sold Under Agreements to Repurchase | 0 | 0 |
Other Debt | $ 0 | $ 0 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Service Charges on Deposit Accounts | $ 6,865 | $ 8,009 | $ 13,994 | $ 16,334 |
Fees, Exchange, and Other Service Charges | 14,400 | 13,965 | 28,733 | 27,297 |
Annuity and Insurance | 1,847 | 2,161 | 3,053 | 4,156 |
Other | 4,557 | 4,456 | 11,422 | 8,311 |
Noninterest Income | 41,298 | 45,236 | 85,333 | 101,152 |
Accounting Standards Update 2014-09 | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income | 41,298 | 45,236 | 85,333 | 101,152 |
Accounting Standards Update 2014-09 | Noninterest Income In Scope of Topic 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Trust and Asset Management | 11,356 | 11,796 | 22,537 | 23,275 |
Service Charges on Deposit Accounts | 3,214 | 3,823 | 6,788 | 7,856 |
Fees, Exchange, and Other Service Charges | 11,457 | 11,279 | 23,050 | 22,034 |
Annuity and Insurance | 1,758 | 1,999 | 2,901 | 3,890 |
Other | 2,532 | 2,449 | 4,810 | 4,544 |
Noninterest Income | 30,317 | 31,346 | 60,086 | 61,599 |
Accounting Standards Update 2014-09 | Noninterest Income Out of Scope of Topic 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income | $ 10,981 | $ 13,890 | $ 25,247 | $ 39,553 |