Cover page
Cover page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 17, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-6887 | ||
Entity Registrant Name | BANK OF HAWAII CORP | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 99-0148992 | ||
Entity Address, Address Line One | 130 Merchant Street | ||
Entity Address, City or Town | Honolulu | ||
Entity Address, State or Province | HI | ||
Entity Address, Postal Zip Code | 96813 | ||
City Area Code | 888 | ||
Local Phone Number | 643-3888 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | BOH | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,288,940,540 | ||
Entity Common Stock, Shares Outstanding | 39,954,880 | ||
Entity Central Index Key | 0000046195 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
NEW YORK STOCK EXCHANGE, INC. [Member] | |||
Entity Information [Line Items] | |||
Security Exchange Name | NYSE |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Income | |||
Interest and Fees on Loans and Leases | $ 439,012 | $ 410,597 | $ 370,441 |
Income on Investment Securities | |||
Available-for-Sale | 62,174 | 50,152 | 46,772 |
Held-to-Maturity | 81,616 | 84,310 | 81,740 |
Deposits | 41 | 34 | 15 |
Funds Sold | 3,553 | 3,723 | 3,882 |
Other | 1,001 | 1,357 | 944 |
Total Interest Income | 587,397 | 550,173 | 503,794 |
Interest Expense | |||
Deposits | 68,374 | 41,143 | 22,332 |
Securities Sold Under Agreements to Repurchase | 17,522 | 18,519 | 19,592 |
Funds Purchased | 840 | 609 | 123 |
Short-Term Borrowings | 38 | 145 | 64 |
Other Debt | 2,908 | 3,405 | 4,445 |
Total Interest Expense | 89,682 | 63,821 | 46,556 |
Net Interest Income | 497,715 | 486,352 | 457,238 |
Provision for Credit Losses | 16,000 | 13,425 | 16,900 |
Net Interest Income After Provision for Credit Losses | 481,715 | 472,927 | 440,338 |
Noninterest Income | |||
Trust and Asset Management | 44,233 | 43,877 | 45,430 |
Mortgage Banking | 13,686 | 8,437 | 12,949 |
Service Charges on Deposit Accounts | 30,074 | 28,811 | 32,575 |
Fees, Exchange, and Other Service Charges | 57,893 | 57,482 | 54,845 |
Investment Securities Gains (Losses), Net | (3,986) | (3,938) | 10,430 |
Annuity and Insurance | 6,934 | 5,822 | 6,858 |
Bank-Owned Life Insurance | 7,015 | 7,199 | 6,517 |
Other | 27,489 | 21,233 | 15,813 |
Total Noninterest Income | 183,338 | 168,923 | 185,417 |
Noninterest Expense | |||
Salaries and Benefits | 216,106 | 213,208 | 203,729 |
Net Occupancy | 33,800 | 34,742 | 32,536 |
Net Equipment | 29,295 | 23,852 | 22,078 |
Data Processing | 18,757 | 17,846 | 15,483 |
Professional Fees | 10,071 | 9,992 | 11,681 |
FDIC Insurance | 5,192 | 7,732 | 8,666 |
Other | 66,006 | 64,252 | 63,518 |
Total Noninterest Expense | 379,227 | 371,624 | 357,691 |
Income Before Provision for Income Taxes | 285,826 | 270,226 | 268,064 |
Provision for Income Taxes | 59,913 | 50,624 | 83,392 |
Net Income | $ 225,913 | $ 219,602 | $ 184,672 |
Basic Earnings Per Share (in dollars per share) | $ 5.59 | $ 5.26 | $ 4.37 |
Diluted Earnings Per Share (in dollars per share) | 5.56 | 5.23 | 4.33 |
Dividends Declared Per Share (in dollars per share) | $ 2.59 | $ 2.34 | $ 2.04 |
Basic Weighted Average Shares (in shares) | 40,384,328 | 41,714,770 | 42,280,931 |
Diluted Weighted Average Shares (in shares) | 40,649,570 | 41,999,399 | 42,607,057 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 225,913 | $ 219,602 | $ 184,672 |
Other Comprehensive Income (Loss), Net of Tax: | |||
Net Unrealized Gains (Losses) on Investment Securities | 22,677 | (6,525) | (1,986) |
Defined Benefit Plans, Net | (2,746) | (2,326) | 1,177 |
Other Comprehensive Income (Loss) | 19,931 | (8,851) | (809) |
Comprehensive Income | $ 245,844 | $ 210,751 | $ 183,863 |
Consolidated Statements of Cond
Consolidated Statements of Condition - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Interest-Bearing Deposits in Other Banks | $ 4,979 | $ 3,028 |
Federal Funds Sold | 254,574 | 198,860 |
Investment Securities | ||
Available-for-Sale | 2,619,003 | 2,007,942 |
Held-to-Maturity (Fair Value of $3,062,882 and $3,413,994) | 3,042,294 | 3,482,092 |
Loans Held for Sale | 39,062 | 10,987 |
Loans and Leases | 10,990,892 | 10,448,774 |
Allowance for Loan and Lease Losses | (110,027) | (106,693) |
Net Loans and Leases | 10,880,865 | 10,342,081 |
Total Earning Assets | 16,840,777 | 16,044,990 |
Due from Banks | 299,105 | 324,081 |
Premises and Equipment, Net | 188,388 | 151,837 |
Accrued Interest Receivable | 46,476 | 51,230 |
Operating lease right-of-use assets | 100,838 | 0 |
Foreclosed Real Estate | 2,737 | 1,356 |
Mortgage Servicing Rights | 25,022 | 24,310 |
Goodwill | 31,517 | 31,517 |
Bank-Owned Life Insurance | 287,962 | 283,771 |
Other Assets | 272,674 | 230,882 |
Total Assets | 18,095,496 | 17,143,974 |
Deposits | ||
Noninterest-Bearing Demand | 4,489,525 | 4,739,596 |
Interest-Bearing Demand | 3,127,205 | 3,002,925 |
Savings | 6,365,321 | 5,539,199 |
Time | 1,802,431 | 1,745,522 |
Total Deposits | 15,784,482 | 15,027,242 |
Short-term Debt | 0 | 199 |
Securities Sold Under Agreements to Repurchase | 604,306 | 504,296 |
Long-Term Debt | 85,565 | 135,643 |
Operating lease liabilities | 108,210 | 0 |
Retirement Benefits Payable | 44,504 | 40,494 |
Accrued Interest Payable | 8,040 | 8,253 |
Taxes Payable and Deferred Taxes | 16,085 | 19,736 |
Other Liabilities | 157,472 | 139,911 |
Total Liabilities | 16,808,664 | 15,875,774 |
Commitments, Contingencies, and Guarantees (Note 20 and Note 23) | ||
Shareholders' Equity | ||
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: December 31, 2019 - 58,166,910 / 40,039,695 and December 31, 2018 - 58,063,689 / 41,499,898) | 579 | 577 |
Capital Surplus | 582,566 | 571,704 |
Accumulated Other Comprehensive Loss | (31,112) | (51,043) |
Retained Earnings | 1,761,415 | 1,641,314 |
Treasury Stock, at Cost (Shares: December 31, 2019 - 18,127,215 and December 31, 2018 - 16,563,791) | (1,026,616) | (894,352) |
Total Shareholders' Equity | 1,286,832 | 1,268,200 |
Total Liabilities and Shareholders' Equity | $ 18,095,496 | $ 17,143,974 |
Consolidated Statements of Co_2
Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Held-to-Maturity, Fair Value | $ 3,062,882 | $ 3,413,994 |
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 | 58,166,910 | 58,063,689 |
Common Stock, outstanding shares | 40,039,695 | 41,499,898 |
Treasury Stock, Shares | 18,127,215 | 16,563,791 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - 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 | 184,672 | 184,672 | ||||
Other Comprehensive Income (Loss) | (809) | (809) | ||||
Share-Based Compensation | 7,369 | 7,369 | ||||
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits | 13,241 | $ 0 | 2,164 | (828) | 11,905 | |
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (in shares) | 337,091 | |||||
Common Stock Repurchased | (47,076) | (47,076) | ||||
Common Stock Repurchased (in shares) | (571,626) | |||||
Cash Dividends Declared | 87,066 | 87,066 | ||||
Balance at End of Period at Dec. 31, 2017 | 1,231,868 | $ 576 | 561,161 | (34,715) | 1,512,218 | (807,372) |
Ending Balance (in shares) at Dec. 31, 2017 | 42,401,443 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | 219,602 | 219,602 | ||||
Other Comprehensive Income (Loss) | (8,851) | (8,851) | ||||
Reclassification of the Income Tax Effect of the Tax Reform from AOCI to RE | (7,477) | 7,477 | ||||
Share-Based Compensation | 8,146 | 8,146 | ||||
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits | 7,919 | $ 1 | 2,397 | 513 | 5,008 | |
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (in shares) | 219,210 | |||||
Common Stock Repurchased | (91,988) | (91,988) | ||||
Common Stock Repurchased (in shares) | (1,120,755) | |||||
Cash Dividends Declared | 98,496 | 98,496 | ||||
Balance at End of Period at Dec. 31, 2018 | $ 1,268,200 | $ 577 | 571,704 | (51,043) | 1,641,314 | (894,352) |
Ending Balance (in shares) at Dec. 31, 2018 | 41,499,898 | 41,499,898 | ||||
Increase (decrease) in shareholders' equity | ||||||
Net Income | $ 225,913 | 225,913 | ||||
Other Comprehensive Income (Loss) | 19,931 | 19,931 | ||||
Share-Based Compensation | 8,337 | 8,337 | ||||
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits | 7,578 | $ 2 | 2,525 | (334) | 5,385 | |
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (in shares) | 212,924 | |||||
Common Stock Repurchased | $ (137,649) | (137,649) | ||||
Common Stock Repurchased (in shares) | (1,642,998) | (1,673,127) | ||||
Cash Dividends Declared | $ 105,478 | 105,478 | ||||
Balance at End of Period at Dec. 31, 2019 | $ 1,286,832 | $ 579 | $ 582,566 | $ (31,112) | $ 1,761,415 | $ (1,026,616) |
Ending Balance (in shares) at Dec. 31, 2019 | 40,039,695 | 40,039,695 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends Declared Per Share (in dollars per share) | $ 2.59 | $ 2.34 | $ 2.04 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||
Net Income | $ 225,913 | $ 219,602 | $ 184,672 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Provision for Credit Losses | 16,000 | 13,425 | 16,900 |
Depreciation and Amortization | 17,268 | 14,389 | 13,048 |
Amortization of Deferred Loan and Lease Fees | 476 | (372) | (1,031) |
Amortization and Accretion of Premiums/Discounts on Investment Securities, Net | 20,683 | 32,966 | 39,186 |
Amortization of Operating Lease Right-of-Use-Assets | 12,616 | 0 | 0 |
Share-Based Compensation | 8,337 | 8,146 | 7,369 |
Benefit Plan Contributions | (1,926) | (1,749) | (11,454) |
Deferred Income Taxes | (15,415) | (6,274) | 4,177 |
Gain (Loss) on Disposition of Property Plant Equipment | (558) | 0 | 0 |
Net Gains (Losses) on Sale of Loans and Leases | (10,357) | (3,834) | (6,780) |
Net Losses (Gains) on Investment Securities | 3,986 | 3,938 | (10,430) |
Proceeds from Sales of Loans Held for Sale | 487,436 | 275,943 | 323,784 |
Originations of Loans Held for Sale | (510,909) | (267,066) | (326,195) |
Net Tax Benefits from Share-Based Compensation | (727) | (993) | (2,521) |
Net Change in Other Assets and Other Liabilities | (20,039) | 27,815 | (60,622) |
Net Cash Provided by Operating Activities | 234,238 | 317,922 | 175,145 |
Investment Securities Available-for-Sale: | |||
Proceeds from Prepayments and Maturities | 1,873,700 | 358,244 | 365,239 |
Purchases | (1,456,901) | (166,915) | (427,061) |
Investment Securities Held-to-Maturity: | |||
Proceeds from Prepayments and Maturities | 794,157 | 853,635 | 882,748 |
Purchases | (1,380,430) | (419,640) | (995,076) |
Net Change in Loans and Leases | (550,533) | (664,692) | (954,984) |
Proceeds from Sale of Loans and Leases Held-for-investment | 0 | 0 | 137,717 |
Premises and Equipment, Net | (53,900) | (35,300) | (30,470) |
Proceeds from Sale of Premises and Equipment | 639 | 0 | 0 |
Net Cash Used in Investing Activities | (773,268) | (74,668) | (1,021,887) |
Financing Activities | |||
Net Change in Deposits | 757,241 | 143,273 | 563,728 |
Net Change in Short-Term Borrowings | 99,811 | (798) | (27,701) |
Proceeds from Long-Term Debt | 0 | 50,000 | 0 |
Repayments of Other Debt | (50,078) | (175,000) | 0 |
Proceeds from Issuance of Common Stock | 7,872 | 7,873 | 13,101 |
Repurchase of Common Stock | (137,649) | (91,988) | (47,076) |
Cash Dividends Paid | (105,478) | (98,496) | (87,066) |
Net Cash Provided by (Used in) Financing Activities | 571,719 | (165,136) | 414,986 |
Net Change in Cash and Cash Equivalents | 32,689 | 78,118 | (431,756) |
Cash and Cash Equivalents at Beginning of Period | 558,658 | 525,969 | 447,851 |
Cash and Cash Equivalents at End of Period | 525,969 | 447,851 | 879,607 |
Supplemental Information | |||
Cash Paid for Interest | 89,894 | 62,515 | 44,945 |
Cash Paid for Income Taxes | 58,152 | 42,475 | 67,883 |
Operating lease right-of-use assets | 100,838 | 0 | 0 |
Operating lease liabilities | 108,210 | 0 | 0 |
Non-Cash Investing and Financing Activities: | |||
Transfer from Loans to Foreclosed Real Estate | 2,070 | 2,693 | 2,559 |
Transfers from Loans to Loans Held for Sale | $ 0 | $ 0 | $ 86,625 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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 majority of the Company’s operations consist of customary commercial and consumer banking services including, but not limited to, lending, leasing, deposit services, trust and investment activities, brokerage services, and trade financing. The accounting and reporting principles of the Company conform to U.S. generally accepted accounting principles (“GAAP”) and prevailing practices within the financial services industry. 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. Certain prior period information has been reclassified to conform to the current year presentation. The following is a summary of the Company’s significant accounting policies: Consolidation 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”). All significant intercompany accounts and transactions have been eliminated in consolidation. 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 for federal and 5 years for state. 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 Accounting Standards Update (“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 $21.3 million and $15.2 million as of December 31, 2019 , and December 31, 2018 , respectively. These unfunded commitments are unconditional and legally binding and are recorded in other liabilities in the consolidated statements of condition. See Note 18 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 6 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 $84.6 million and $85.9 million as of December 31, 2019 , and December 31, 2018 , respectively, and is included in other assets in the consolidated statements of condition. Investment Securities Investment securities are accounted for according to their purpose and holding period. Trading securities are those that are bought and held principally for the purpose of selling them in the near term. The Company held no trading securities as of December 31, 2019 or December 31, 2018 . Available-for-sale investment securities, comprised of debt and mortgage-backed securities, are those that may be sold before maturity due to changes in the Company’s interest rate risk profile or funding needs, and are reported at fair value with unrealized gains and losses, net of taxes, reported as a component of other comprehensive income. Held-to-maturity investment securities, comprised of debt and mortgage-backed securities, are those that management has the positive intent and ability to hold to maturity and are reported at amortized cost. Realized gains and losses are recorded in noninterest income and are determined on a trade date basis using the specific identification method. Interest and dividends on investment securities are recognized in interest income on an accrual basis. Premiums and discounts are amortized or accreted into interest income using the interest method over the expected lives of the individual securities. Transfers of debt securities from the available-for-sale category to the held-to-maturity category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income and in the carrying value of the held-to-maturity investment security. Premiums or discounts on investment securities are amortized or accreted as an adjustment of yield using the interest method over the estimated life of the security. Unrealized holding gains or losses that remain in accumulated other comprehensive income are also amortized or accreted over the estimated life of the security as an adjustment of yield, offsetting the related amortization of the premium or accretion of the discount. Other-Than-Temporary-Impairments of Investment Securities The Company conducts an other-than-temporary-impairment (“OTTI”) analysis of investment securities on a quarterly basis or more often if a potential loss-triggering event occurs. A write-down of a debt security is recorded when fair value is below amortized cost in circumstances where: (1) the Company has the intent to sell a security; (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. If the Company intends to sell a security or if it is more likely than not that the Company will be required to sell the security before recovery, an OTTI write-down is recognized in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. If the Company does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the OTTI write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in other comprehensive income. To determine the amount related to credit loss on a debt security, the Company applies a methodology similar to that used for evaluating the impairment of loans. As of December 31, 2019 , management determined that the Company did not own any investment securities that were other-than-temporarily-impaired. Loans Held for Sale Residential mortgage loans with the intent to be sold in the secondary market are accounted for on an aggregate basis under the fair value option. Fair value is primarily determined based on quoted prices for similar loans in active markets. Non-refundable fees and direct loan origination costs related to residential mortgage loans held for sale are recognized as part of the cost basis of the loan at the time of sale. Gains and losses on sales of residential mortgage loans (sales proceeds minus carrying value) are recorded in the mortgage banking component of noninterest income. Commercial loans that management has an active plan to sell are valued on an individual basis at the lower-of-cost-or fair value. Fair value is primarily determined based on quoted prices for similar loans in active markets or agreed upon sales prices. Any reduction in the loan’s value, prior to being transferred to the held-for-sale category, is reflected as a charge-off of the recorded investment in the loan resulting in a new cost basis, with a corresponding reduction in the allowance for loan and lease losses. Further decreases in the fair value of the loan are recognized in noninterest expense. Loans and Leases Loans are reported at the principal amount outstanding, net of unearned income including unamortized deferred loan fees and costs, and cumulative net charge-offs. Interest income is recognized on an accrual basis. Loan origination fees, certain direct costs, and unearned discounts and premiums, if any, are deferred and are generally amortized into interest income as yield adjustments using the interest method over the contractual life of the loan. Loan commitment fees are generally recognized into noninterest income. Other credit-related fees are recognized as fee income, a component of noninterest income, when earned. The Company’s lease financing arrangements, excluding leveraged leases, primarily consist of equipment and automobile leases. These lease arrangments are classified as sales-type leases despite not receiving a selling profit at lease inception. Sales-type leases are carried at the aggregate of lease payments receivable plus the estimated residual value of leased property, less unearned income. Leveraged leases are carried net of non-recourse debt. Unearned income on sales-type and leveraged leases is amortized over the lease term by methods that approximate the interest method. Residual values on leased assets are periodically reviewed for impairment. Portfolio segments are defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for loan and lease losses (the “Allowance”). Management has determined that the Company has two portfolio segments of loans and leases (commercial and consumer) in determining the Allowance. Both quantitative and qualitative factors are used by management at the portfolio segment level in determining the adequacy of the Allowance for the Company. Classes of loans and leases are a disaggregation of a Company’s portfolio segments. Classes are defined as a group of loans and leases which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. Management has determined that the Company has eight classes of loans and leases (commercial and industrial, commercial mortgage, construction, lease financing, residential mortgage, home equity, automobile, and other). The “other” class of loans and leases is comprised of revolving credit, installment, and consumer lease financing arrangements. Non-Performing Loans and Leases Generally, all classes of commercial loans and leases are placed on non-accrual status upon becoming contractually past due 90 days as to principal or interest (unless loans and leases are adequately secured by collateral, are in the process of collection, and are reasonably expected to result in repayment), when terms are renegotiated below market levels, or where substantial doubt about full repayment of principal or interest is evident. For residential mortgage and home equity loan classes, loans past due 120 days as to principal or interest may be placed on non-accrual status, and a partial charge-off may be recorded, depending on the collateral value and/or the collectability of the loan. For automobile and other consumer loan classes, the entire outstanding balance of the loan is charged off when the loan becomes 120 days past due as to principal or interest. When a loan or lease is placed on non-accrual status, the accrued and unpaid interest receivable is reversed and the loan or lease is accounted for on the cash or cost recovery method until qualifying for return to accrual status. All payments received on non-accrual loans and leases are applied against the principal balance of the loan or lease. A loan or lease may be returned to accrual status when all delinquent interest and principal become current in accordance with the terms of the loan or lease agreement and when doubt about repayment is resolved. Generally, for all classes of loans and leases, a charge-off is recorded when it is probable that a loss has been incurred and when it is possible to determine a reasonable estimate of the loss. For all classes of commercial loans and leases, a charge-off is determined on a judgmental basis after due consideration of the debtor’s prospects for repayment and the fair value of collateral. For the pooled segment of the Company’s commercial and industrial loan class, which consists of small business loans, the entire outstanding balance of the loan remains on accrual status until it is charged off during the month that the loan becomes 120 days past due as to principal or interest. As previously mentioned, for residential mortgage and home equity loan classes, a partial charge-off may be recorded at 120 days past due as to principal or interest depending on the collateral value and/or the collectability of the loan. In the event that a loan or line in the home equity loan class is behind another financial institution’s first mortgage, the entire outstanding balance of the loan is charged off when the loan becomes 120 days past due as to principal or interest, unless the combined loan-to-value ratio is 60% or less. As noted above, loans in the automobile and other consumer loan classes are charged off in its entirety upon the loan becoming 120 days past due as to principal or interest. Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect all amounts due from the borrower in accordance with the contractual terms of the loan, including scheduled interest payments. Impaired loans include all classes of commercial non-accruing loans (except lease financing and small business loans), and all loans modified in a troubled debt restructuring. Impaired loans exclude lease financing and smaller balance homogeneous loans (consumer and small business non-accruing loans) that are collectively evaluated for impairment. For all classes of commercial loans, a quarterly evaluation of individual commercial borrowers is performed to identify impaired loans. The identification of specific borrowers for review is based on a review of non-accrual loans as well as those loans specifically identified by management as exhibiting above average levels of risk. When a loan has been identified as being impaired, the amount of impairment 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. If the measurement of the impaired loan is less than the recorded investment in the loan (including accrued interest, net of deferred loan fees or costs, and unamortized premiums or discounts), impairment is recognized by establishing or adjusting an existing allocation of the Allowance, or by recording a partial charge-off of the loan to its fair value. Interest payments made on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest income may be accrued or recognized on a cash basis. Loans Modified in a Troubled Debt Restructuring Loans are considered to have been modified in a troubled debt restructuring when, due to a borrower’s financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a non-accrual loan that has been modified in a troubled debt restructuring remains on non-accrual status for a period of at least 6 months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. Reserve for Credit Losses The Company’s reserve for credit losses is comprised of two components, the Allowance and the reserve for unfunded commitments (the “Unfunded Reserve”). Allowance for Loan and Lease Losses The Company maintains an Allowance adequate to cover management’s estimate of probable credit losses as of the balance sheet date. Loans and leases that are charged off reduce the Allowance while recoveries of loans and leases previously charged off increase the Allowance. Other changes to the level of the Allowance are recognized through charges or credits to the provision for credit losses (the “Provision”). The Allowance considers both unimpaired and impaired loans and is developed and documented at the portfolio segment level (commercial and consumer). The level of the Allowance related to the Company’s commercial portfolio segment is generally based on the credit risk ratings and historical loss experience of individual borrowers. This is supplemented as necessary by credit judgment to address observed changes in trends and conditions, and other relevant environmental and economic factors that may affect the collectability of loans and leases. Excluding those loans and leases evaluated individually for impairment, the Company’s remaining commercial loans and leases are pooled and collectively evaluated for impairment based on business unit and internal risk rating segmentation. The level of the Allowance related to the Company’s consumer portfolio segment is generally based on analyses of homogeneous pools of loans and leases. Loans and leases are pooled based on similar loan and lease risk characteristics for collective evaluation of impairment. Loss estimates are calculated based on historical rolling average loss rates and average delinquency flows to loss. Consumer loans that have been individually evaluated for impairment or modified in a troubled debt restructuring are excluded from the homogeneous pools. Impairment related to such loans is generally determined based on the present value of expected future cash flows discounted at the loan’s original effective interest rate. The Allowance also includes an estimate for inherent losses not reflected in the historical analyses. Relevant factors include, but are not limited to, concentrations of credit risk (geographic, large borrower, and industry), economic trends and conditions, changes in underwriting standards, experience and depth of lending staff, trends in delinquencies, and the level of net charge-offs. In addition, the Company uses a variety of other tools to estimate probable credit losses including, but not limited to, a rolling quarterly forecast of asset quality metrics; stress testing; and performance indicators based on the Company’s own experience, peers, or other industry sources. Reserve for Unfunded Commitments The Unfunded Reserve is a component of other liabilities and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include banker’s acceptances, and standby and commercial letters of credit. The process used to determine the Unfunded Reserve is consistent with the process for determining the Allowance, as adjusted for estimated funding probabilities or loan and lease equivalency factors. The level of the Unfunded Reserve is adjusted by recording an expense or recovery in other noninterest expense. Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, interest-bearing deposits in other banks, and funds sold. All amounts are readily convertible to cash and have maturities of less than 90 days. Premises and Equipment Premises and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. Capital leases are included in premises and equipment at the capitalized amount less accumulated amortization. Premises and equipment are depreciated using the straight-line method over the estimated useful lives of the respective assets. Estimated useful lives generally range up to 30 years for buildings and up to 10 years for equipment. Capitalized leased assets and leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the lease term. Repairs and maintenance are charged to expense as incurred, while improvements which extend the estimated useful life of the asset are capitalized and depreciated over the estimated remaining life of the asset. Premises and equipment are periodically evaluated for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of premises and equipment are less than its carrying amount. In that event, the Company records a loss for the difference between the carrying amount and the fair value of the asset based on quoted market prices, if applicable, or a discounted cash flow analysis. Foreclosed Real Estate Foreclosed real estate consists of properties acquired through foreclosure proceedings or acceptance of a deed-in-lieu of foreclosure. These properties are recorded at fair value less estimated costs to sell the property. If the recorded investment in the loan exceeds the property’s fair value at the time of acquisition, a charge-off is recorded against the Allowance. If the fair value of the property at the time of acquisition exceeds the carrying amount of the loan, the excess is recorded either as a recovery to the Allowance if a charge-off had previously been recorded, or as a gain on initial transfer in other noninterest income. Subsequent decreases in the property’s fair value and operating expenses of the property are recognized through charges to other noninterest expense. The fair value of the property acquired is based on third party appraisals, broker price opinions, recent sales activity, or a combination thereof, subject to management judgment. Mortgage Servicing Rights Mortgage servicing rights are recognized as assets when mortgage loans are sold and the rights to service those loans are retained. Mortgage servicing rights are initially recorded at fair value by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company’s mortgage servicing rights accounted for under the fair value method are carried on the statements of condition at fair value with changes in fair value recorded in mortgage banking income in the period in which the change occurs. Changes in the fair value of mortgage servicing rights are primarily due to changes in valuation inputs, assumptions, and the collection and realization of expected cash flows. The Company’s mortgage servicing rights accounted for under the amortization method are initially recorded at fair value. However, these mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income. An impairment analysis is prepared on a quarterly basis by estimating the fair value of the mortgage servicing rights and comparing that value to the carrying amount. A valuation allowance is established when the carrying amount of these mortgage servicing rights exceeds fair value. Goodwill Goodwill is initially recorded as the excess of the purchase price over the fair value of the net assets acquired in a business combination and is subsequently evaluated at least annually for impairment. Goodwill impairment testing is performed at the reporting unit level, equivalent to a business segment or one level below. The Company has goodwill assigned to the following reporting units: Investment Services and Retail Banking. The Company performs its annual evaluation of goodwill impairment in the fourth quarter of each year and on an interim basis if events or changes in circumstances indicate that there may be impairment. The Company performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The qualitative factors considered include, but are not limited to, macroeconomic and State of Hawaii economic conditions, industry and market conditions and trends, the Company’s financial performance, market capitalization, stock price, and any Company-specific events relevant to the assessment. If the assessment of qualitative factors indicates that it is not more likely than not that an impairment exists, no further testing is performed; otherwise an impairment test is performed. Prior to 2017, the goodwill impairment test was a two-step test. The first step compared the estimated fair value of identified reporting units with their carrying amount, including goodwill. If the estimated fair value of a reporting unit was less than the carrying value, the second step was required to determine the implied fair value of the reporting unit’s goodwill and the amount of goodwill impairment, if any. In 2017, the Company elected to early adopt ASU No. 2017-04, “Simplifying the Test for Goodwill Impairment.” The guidance removed Step 2 of the goodwill impairment test. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance remained largely unchanged. Subsequent reversals of goodwill impairment are prohibited. For the year ended December 31, 2019 , the Company’s goodwill impairment evaluation, based on its qualitative assessment, indicated there was no impairment. Non-Marketable Equity Securities The Company is required to own Federal Home Loan Bank (“FHLB”) of Des Moines and Federal Reserve Bank (“FRB”) stock as a condition of membership. These non-marketable equity securities are accounted for at cost which equals par or redemption value. These securities do not have a readily determinable fair value as their ownership is restricted and there is no market for these securities. 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, which are periodically evaluated 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 by recognizing temporary declines in value. Bank-Owned Life Insurance The Company purchases life insurance policies on the lives of certain officers and employees and is the owner and beneficiary of the policies. The Company invests in these Bank-Owned Life Insurance (“BOLI”) policies to provide an efficient form of funding for long-term retirement and other employee benefits costs. The Company records these BOLI policies in the consolidated statements of condition at cash surrender value, with changes recorded in noninterest income in the consolidated statements of income. Securities Sold Under Agreements to Repurchase 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, securities sold under agreements to repurchase are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase 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 securities sold under agreements to repurchase remain in the respective asset accounts. See Note 19 Balance Sheet Offsetting for more information. Pension and Postretirement Benefit Plans The Company incurs certain employment-related expenses associated with its two frozen pension plans and a postretirement benefit plan (the “Plans”). In order to measure the expense associated with the Plans, various assumptions are made including the discount rate, expected return on plan assets, anticipated mortality rates, and expected future healthcare costs. The assumptions are based on historical experience as well as current facts and circumstances. The Company uses a December 31 measurement date for its Plans. As of the measurement date, plan assets are determined based on fair value, generally representing observable market prices. The projected benefit obligation is primarily determined based on the present value of projected benefit distributions at an assumed discount rate. Net periodic pension benefit costs include interest costs based on an assumed discount rate, the expected return on plan assets based on actuarially derived market-related values, and the amortization of net actuarial gains or losses. Net periodic postretirement benefit costs include service costs, interest costs based on an assumed discount rate, and the amortization of prior service credits and net actuarial gains or losses. Differences between expected and actual results in each year are included in the net actuarial gain or loss amount, which is recognized in other comprehensive income. The net actuarial gain or loss in excess of a 10% corridor is amortized in net periodic benefit cost over the average remaining expected lives of the pension plan participants and over the average remaining future service years of the postretirement benefit plan participants. The prior service credit is amortized over the average remaining service period to full eligibility for participating employees expected to receive benefits. The Company recognizes in its consolidated statements of con |
Restrictions on Cash and Cash a
Restrictions on Cash and Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on Cash and Cash and Cash Equivalents | The Company is required to maintain cash on hand or on deposit with the Federal Reserve Bank based on the amount of certain customer deposits, mainly checking accounts. The Bank’s average required reserve balances were $68.4 million and $72.3 million as of December 31, 2019 , and December 31, 2018 , respectively. 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) December 31, December 31, Interest-Bearing Deposits in Other Banks $ 4,979 $ 3,028 Funds Sold 254,574 198,860 Cash and Due From Banks 299,105 324,081 Total Cash and Cash Equivalents $ 558,658 $ 525,969 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities as of December 31, 2019 , December 31, 2018 , and December 31, 2017 , were as follows: (dollars in thousands) Amortized Gross Gross Fair December 31, 2019 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 222,365 $ 213 $ (1,447 ) $ 221,131 Debt Securities Issued by States and Political Subdivisions 54,480 631 (14 ) 55,097 Debt Securities Issued by U.S. Government-Sponsored Enterprises 22,128 19 — 22,147 Debt Securities Issued by Corporations 335,553 1,401 (633 ) 336,321 Mortgage-Backed Securities: Residential - Government Agencies 1,164,466 11,627 (3,267 ) 1,172,826 Residential - U.S. Government-Sponsored Enterprises 584,272 4,363 (1,874 ) 586,761 Commercial - Government Agencies 224,372 2,889 (2,541 ) 224,720 Total Mortgage-Backed Securities 1,973,110 18,879 (7,682 ) 1,984,307 Total $ 2,607,636 $ 21,143 $ (9,776 ) $ 2,619,003 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 274,375 $ 1,319 $ (31 ) $ 275,663 Debt Securities Issued by States and Political Subdivisions 54,811 1,236 — 56,047 Debt Securities Issued by Corporations 14,975 — (138 ) 14,837 Mortgage-Backed Securities: Residential - Government Agencies 1,067,416 13,247 (5,348 ) 1,075,315 Residential - U.S. Government-Sponsored Enterprises 1,546,479 13,871 (2,478 ) 1,557,872 Commercial - Government Agencies 84,238 317 (1,407 ) 83,148 Total Mortgage-Backed Securities 2,698,133 27,435 (9,233 ) 2,716,335 Total $ 3,042,294 $ 29,990 $ (9,402 ) $ 3,062,882 December 31, 2018 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 394,485 $ 493 $ (2,577 ) $ 392,401 Debt Securities Issued by States and Political Subdivisions 559,800 5,227 (1,031 ) 563,996 Debt Securities Issued by U.S. Government-Sponsored Enterprises 56 — — 56 Debt Securities Issued by Corporations 224,997 — (1,857 ) 223,140 Mortgage-Backed Securities: Residential - Government Agencies 189,645 1,726 (929 ) 190,442 Residential - U.S. Government-Sponsored Enterprises 589,311 1,779 (12,563 ) 578,527 Commercial - Government Agencies 63,864 — (4,484 ) 59,380 Total Mortgage-Backed Securities 842,820 3,505 (17,976 ) 828,349 Total $ 2,022,158 $ 9,225 $ (23,441 ) $ 2,007,942 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 353,122 $ 186 $ (1,093 ) $ 352,215 Debt Securities Issued by States and Political Subdivisions 234,602 6,150 — 240,752 Debt Securities Issued by Corporations 97,266 — (1,755 ) 95,511 Mortgage-Backed Securities: Residential - Government Agencies 1,861,874 3,886 (51,773 ) 1,813,987 Residential - U.S. Government-Sponsored Enterprises 758,835 1,590 (20,259 ) 740,166 Commercial - Government Agencies 176,393 147 (5,177 ) 171,363 Total Mortgage-Backed Securities 2,797,102 5,623 (77,209 ) 2,725,516 Total $ 3,482,092 $ 11,959 $ (80,057 ) $ 3,413,994 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 As mentioned in Note 1 the FASB issued ASU No. 2019-04 in April 2019. In June 2019, the Company elected to early adopt the amendments to Topic 815, Derivatives and Hedging, which allowed the Company a one-time reclassification of certain prepayable debt securities from HTM to AFS. On June 10, 2019, prepayable debt securities with a carrying value of $1.0 billion and a net unrealized gain of $3.1 million were transferred from held-to-maturity to available-for-sale. The reclassified securities consisted of mortgage-backed securities issued by U.S. government agencies and government-sponsored enterprises, municipal debt securities, and corporate debt securities. The table below presents an analysis of the contractual maturities of the Company’s investment securities as of December 31, 2019 . 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 Fair Value Available-for-Sale: Due in One Year or Less $ 126,483 $ 126,672 Due After One Year Through Five Years 114,822 114,858 Due After Five Years Through Ten Years 171,950 173,137 Due After Ten Years 51 52 413,306 414,719 Debt Securities Issued by Government Agencies 221,220 219,977 Mortgage-Backed Securities: Residential - Government Agencies 1,164,466 1,172,826 Residential - U.S. Government-Sponsored Enterprises 584,272 586,761 Commercial - Government Agencies 224,372 224,720 Total Mortgage-Backed Securities 1,973,110 1,984,307 Total $ 2,607,636 $ 2,619,003 Held-to-Maturity: Due in One Year or Less $ 294,760 $ 296,286 Due After One Year Through Five Years 49,401 50,261 344,161 346,547 Mortgage-Backed Securities: Residential - Government Agencies 1,067,416 1,075,315 Residential - U.S. Government-Sponsored Enterprises 1,546,479 1,557,872 Commercial - Government Agencies 84,238 83,148 Total Mortgage-Backed Securities 2,698,133 2,716,335 Total $ 3,042,294 $ 3,062,882 Investment securities with carrying values of $2.6 billion , $2.3 billion , $2.4 billion as of December 31, 2019 , December 31, 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 years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 . (dollars in thousands) 2019 2018 2017 Gross Gains on Sales of Investment Securities $ 7,810 $ — $ 12,467 Gross Losses on Sales of Investment Securities (11,796 ) (3,938 ) (2,037 ) Net Gains (Losses) on Sales of Investment Securities $ (3,986 ) $ (3,938 ) $ 10,430 The gross gains and losses on sales of investment securities during the year ended December 31, 2019 , included sales of AFS municipal debt securities, mortgage-backed securities, and corporate debt securities as part of a portfolio repositioning. In addition, fees paid to the counterparties of our prior Visa Class B share sale transactions which are expensed as incurred also contributed to the losses during the year ended December 31, 2019 , December 31, 2018 , and December 31, 2017 . In addition, losses during the year ended December 31, 2019 , and December 31, 2018 , included $0.5 million and $1.0 million, respectively, related to a change in the Visa Class B conversion ratio. The Company’s investment securities in an unrealized loss position, segregated by continuous length of impairment, were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Gross Fair Value Gross Fair Value Gross December 31, 2019 Available-for-Sales: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 65,479 $ (188 ) $ 101,761 $ (1,259 ) $ 167,240 $ (1,447 ) Debt Securities Issued by States and Political Subdivisions 6,788 (14 ) 440 — 7,228 (14 ) Debt Securities Issued by Corporations 25,892 (326 ) 74,693 (307 ) 100,585 (633 ) Mortgage-Backed Securities: Residential - Government Agencies 119,271 (526 ) 170,805 (2,741 ) 290,076 (3,267 ) Residential - U.S. Government-Sponsored Enterprises 187,861 (816 ) 73,720 (1,058 ) 261,581 (1,874 ) Commercial - Government Agencies 59,826 (319 ) 52,965 (2,222 ) 112,791 (2,541 ) Total Mortgage-Backed Securities 366,958 (1,661 ) 297,490 (6,021 ) 664,448 (7,682 ) Total $ 465,117 $ (2,189 ) $ 474,384 $ (7,587 ) $ 939,501 $ (9,776 ) Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ — $ 39,984 $ (31 ) $ 39,984 $ (31 ) Debt Securities Issued by Corporations 4,416 (15 ) 10,421 (123 ) 14,837 (138 ) Mortgage-Backed Securities: Residential - Government Agencies 88,061 (422 ) 255,816 (4,926 ) 343,877 (5,348 ) Residential - U.S. Government-Sponsored Enterprises 340,453 (909 ) 156,018 (1,569 ) 496,471 (2,478 ) Commercial - Government Agencies 10,529 (19 ) 52,052 (1,388 ) 62,581 (1,407 ) Total Mortgage-Backed Securities 439,043 (1,350 ) 463,886 (7,883 ) 902,929 (9,233 ) Total $ 443,459 $ (1,365 ) $ 514,291 $ (8,037 ) $ 957,750 $ (9,402 ) December 31, 2018 Available-for-Sales: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 157,058 $ (964 ) $ 173,763 $ (1,613 ) $ 330,821 $ (2,577 ) Debt Securities Issued by States and Political Subdivisions 38,138 (59 ) 156,772 (972 ) 194,910 (1,031 ) Debt Securities Issued by Corporations 59,770 (231 ) 163,371 (1,626 ) 223,141 (1,857 ) Mortgage-Backed Securities: Residential - Government Agencies 6,299 (10 ) 19,011 (919 ) 25,310 (929 ) Residential - U.S. Government-Sponsored Enterprises — — 473,380 (12,563 ) 473,380 (12,563 ) Commercial - Government Agencies — — 59,380 (4,484 ) 59,380 (4,484 ) Total Mortgage-Backed Securities 6,299 (10 ) 551,771 (17,966 ) 558,070 (17,976 ) Total $ 261,265 $ (1,264 ) $ 1,045,677 $ (22,177 ) $ 1,306,942 $ (23,441 ) Held-to-Maturity: Debt Securities Issued by the U.S. Treasury $ 99,440 $ (237 ) $ 134,239 $ (856 ) $ 233,679 $ (1,093 ) Debt Securities Issued by Corporations — — 95,511 (1,755 ) 95,511 (1,755 ) Mortgage-Backed Securities: Residential - Government Agencies 12,974 (45 ) 1,491,747 (51,728 ) 1,504,721 (51,773 ) Residential - U.S. Government-Sponsored Enterprises — — 617,000 (20,259 ) 617,000 (20,259 ) Commercial - Government Agencies 19,217 (61 ) 145,715 (5,116 ) 164,932 (5,177 ) Total Mortgage-Backed Securities 32,191 (106 ) 2,254,462 (77,103 ) 2,286,653 (77,209 ) Total $ 131,631 $ (343 ) $ 2,484,212 $ (79,714 ) $ 2,615,843 $ (80,057 ) The Company does not believe that the investment securities that were in an unrealized loss position as of December 31, 2019 , which were comprised of 254 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 December 31, 2019 , 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 bases, which may be at maturity. Interest income from taxable and non-taxable investment securities for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , were as follows: Year Ended December 31, (dollars in thousands) 2019 2018 2017 Taxable $ 137,204 $ 115,947 $ 108,787 Non-Taxable 6,586 18,515 19,725 Total Interest Income from Investment Securities $ 143,790 $ 134,462 $ 128,512 As of December 31, 2019 , and December 31, 2018 , the carrying value of the Company’s Federal Home Loan Bank of Des Moines (“FHLB Des Moines”) stock and Federal Reserve Bank stock was as follows: December 31, (dollars in thousands) 2019 2018 Federal Home Loan Bank Stock $ 13,000 $ 15,000 Federal Reserve Bank Stock 21,093 20,858 Total $ 34,093 $ 35,858 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 not be sufficient 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 December 31, 2019 , the conversion ratio was 1.6228 . See Note 17 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 80,214 Class B shares ( 130,171 Class A equivalents) that the Company owns as of December 31, 2019 |
Loans and Leases and the Allowa
Loans and Leases and the Allowance for Loan and Lease Losses | 12 Months Ended |
Dec. 31, 2019 | |
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 The Company’s loan and lease portfolio was comprised of the following as of December 31, 2019 , and December 31, 2018 : December 31, (dollars in thousands) 2019 2018 Commercial Commercial and Industrial $ 1,379,152 $ 1,331,149 Commercial Mortgage 2,518,051 2,302,356 Construction 194,170 170,061 Lease Financing 122,454 176,226 Total Commercial 4,213,827 3,979,792 Consumer Residential Mortgage 3,891,100 3,673,796 Home Equity 1,676,073 1,681,442 Automobile 720,286 658,133 Other 1 489,606 455,611 Total Consumer 6,777,065 6,468,982 Total Loans and Leases $ 10,990,892 $ 10,448,774 1 Comprised of other revolving credit, installment, and lease financing. Total loans and leases were reported net of unearned fee of $1.3 million and income of $15.1 million as of December 31, 2019 and December 31, 2018 , respectively. Commercial loans and residential mortgage loans of $1.0 billion were pledged to secure an undrawn FRB line of credit as of December 31, 2019 , and December 31, 2018 . As of December 31, 2019 , and December 31, 2018 , residential mortgage loans of $3.1 billion and $2.9 billion , were pledged under a blanket pledge arrangement to secure FHLB advances, respectively. See Note 10 Other Debt for FHLB advances outstanding as of December 31, 2019 , and December 31, 2018 . Net gains related to sales of residential mortgage loans, recorded as a component of mortgage banking income, were $5.3 million , $1.5 million , and $4.9 million for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , respectively. Net gains on sales of commercial loans were not material for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 . Substantially all of the Company’s lending activity is with customers located in Hawaii. A substantial portion of the Company’s real estate loans are secured by real estate in Hawaii. Allowance for Loan and Lease Losses The following presents by portfolio segment, the activity in the Allowance for the years ended December 31, 2019 , December 31, 2018 , and December 31, 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 December 31, 2019 , December 31, 2018 , and December 31, 2017 . (dollars in thousands) Commercial Consumer Total For the Year Ended December 31, 2019 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 66,874 $ 39,819 $ 106,693 Loans and Leases Charged-Off (2,738 ) (21,217 ) (23,955 ) Recoveries on Loans and Leases Previously Charged-Off 1,513 9,776 11,289 Net Loans and Leases Recovered (Charged-Off) (1,225 ) (11,441 ) (12,666 ) Provision for Credit Losses 8,152 7,848 16,000 Balance at End of Period $ 73,801 $ 36,226 $ 110,027 As of December 31, 2019 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 2,657 $ 3,246 $ 5,903 Collectively Evaluated for Impairment 71,144 32,980 104,124 Total $ 73,801 $ 36,226 $ 110,027 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 35,442 $ 39,760 $ 75,202 Collectively Evaluated for Impairment 4,178,385 6,737,305 10,915,690 Total $ 4,213,827 $ 6,777,065 $ 10,990,892 For the Year Ended December 31, 2018 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 65,822 $ 41,524 $ 107,346 Loans and Leases Charged-Off (1,505 ) (23,059 ) (24,564 ) Recoveries on Loans and Leases Previously Charged-Off 2,039 8,447 10,486 Net Loans and Leases Recovered (Charged-Off) 534 (14,612 ) (14,078 ) Provision for Credit Losses 518 12,907 13,425 Balance at End of Period $ 66,874 $ 39,819 $ 106,693 As of December 31, 2018 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 222 $ 3,754 $ 3,976 Collectively Evaluated for Impairment 66,652 36,065 102,717 Total $ 66,874 $ 39,819 $ 106,693 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 12,298 $ 42,327 $ 54,625 Collectively Evaluated for Impairment 3,967,494 6,426,655 10,394,149 Total $ 3,979,792 $ 6,468,982 $ 10,448,774 For the Year Ended December 31, 2017 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 65,680 $ 38,593 $ 104,273 Loans and Leases Charged-Off (1,408 ) (21,847 ) (23,255 ) Recoveries on Loans and Leases Previously Charged-Off 1,485 7,943 9,428 Net Loans and Leases Recovered (Charged-Off) 77 (13,904 ) (13,827 ) Provision for Credit Losses 65 16,835 16,900 Balance at End of Period $ 65,822 $ 41,524 $ 107,346 As of December 31, 2017 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 141 $ 3,775 $ 3,916 Collectively Evaluated for Impairment 65,681 37,749 103,430 Total $ 65,822 $ 41,524 $ 107,346 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 20,216 $ 41,002 $ 61,218 Collectively Evaluated for Impairment 3,746,282 5,989,447 9,735,729 Total $ 3,766,498 $ 6,030,449 $ 9,796,947 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 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 December 31, 2019 , and December 31, 2018 . December 31, 2019 (dollars in thousands) Commercial Commercial Construction Lease Total Pass $ 1,306,040 $ 2,463,858 $ 188,832 $ 120,933 $ 4,079,663 Special Mention 37,722 16,453 4,148 — 58,323 Classified 35,390 37,740 1,190 1,521 75,841 Total $ 1,379,152 $ 2,518,051 $ 194,170 $ 122,454 $ 4,213,827 (dollars in thousands) Residential Home Automobile Other 1 Total Pass $ 3,886,389 $ 1,671,468 $ 719,337 $ 488,113 $ 6,765,307 Classified 4,711 4,605 949 1,493 11,758 Total $ 3,891,100 $ 1,676,073 $ 720,286 $ 489,606 $ 6,777,065 Total Recorded Investment in Loans and Leases $ 10,990,892 December 31, 2018 (dollars in thousands) Commercial Commercial Construction Lease Total Pass $ 1,302,278 $ 2,256,128 $ 168,740 $ 175,223 $ 3,902,369 Special Mention 17,688 30,468 — 5 48,161 Classified 11,183 15,760 1,321 998 29,262 Total $ 1,331,149 $ 2,302,356 $ 170,061 $ 176,226 $ 3,979,792 (dollars in thousands) Residential Home Automobile Other 1 Total Pass $ 3,668,475 $ 1,677,193 $ 657,620 $ 454,697 $ 6,457,985 Classified 5,321 4,249 513 914 10,997 Total $ 3,673,796 $ 1,681,442 $ 658,133 $ 455,611 $ 6,468,982 Total Recorded Investment in Loans and Leases $ 10,448,774 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 December 31, 2019 , and December 31, 2018 . (dollars in thousands) 30 - 59 60 - 89 Past Due Non- Total Current Total Loans Non-Accrual 2 As of December 31, 2019 Commercial Commercial and Industrial $ 12,534 $ 148 $ — $ 830 $ 13,512 $ 1,365,640 $ 1,379,152 $ 421 Commercial Mortgage 2,998 — — 9,244 12,242 2,505,809 2,518,051 9,244 Construction 101 51 — — 152 194,018 194,170 — Lease Financing 720 — — — 720 121,734 122,454 — Total Commercial 16,353 199 — 10,074 26,626 4,187,201 4,213,827 9,665 Consumer Residential Mortgage 6,097 2,070 1,839 4,125 14,131 3,876,969 3,891,100 1,429 Home Equity 3,949 2,280 4,125 3,181 13,535 1,662,538 1,676,073 412 Automobile 16,067 4,154 949 — 21,170 699,116 720,286 — Other 1 3,498 2,074 1,493 — 7,065 482,541 489,606 — Total Consumer 29,611 10,578 8,406 7,306 55,901 6,721,164 6,777,065 1,841 Total $ 45,964 $ 10,777 $ 8,406 $ 17,380 $ 82,527 $ 10,908,365 $ 10,990,892 $ 11,506 As of December 31, 2018 Commercial Commercial and Industrial $ 3,653 $ 118 $ 10 $ 542 $ 4,323 $ 1,326,826 $ 1,331,149 $ 515 Commercial Mortgage 561 — — 2,040 2,601 2,299,755 2,302,356 2,040 Construction — — — — — 170,061 170,061 — Lease Financing — — — — — 176,226 176,226 — Total Commercial 4,214 118 10 2,582 6,924 3,972,868 3,979,792 2,555 Consumer Residential Mortgage 5,319 638 2,446 5,321 13,724 3,660,072 3,673,796 1,203 Home Equity 3,323 1,581 2,684 3,671 11,259 1,670,183 1,681,442 765 Automobile 12,372 2,240 513 — 15,125 643,008 658,133 — Other 1 2,913 1,245 914 — 5,072 450,539 455,611 — Total Consumer 23,927 5,704 6,557 8,992 45,180 6,423,802 6,468,982 1,968 Total $ 28,141 $ 5,822 $ 6,567 $ 11,574 $ 52,104 $ 10,396,670 $ 10,448,774 $ 4,523 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 December 31, 2019 , and December 31, 2018 . (dollars in thousands) Recorded Unpaid Related December 31, 2019 Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 3,334 $ 3,334 $ — Commercial Mortgage 10,658 15,774 — Construction 1,190 1,190 — Total Commercial 15,182 20,298 — Total Impaired Loans with No Related Allowance Recorded $ 15,182 $ 20,298 $ — Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 18,467 $ 18,750 $ 2,552 Commercial Mortgage 1,793 1,793 105 Total Commercial 20,260 20,543 2,657 Consumer Residential Mortgage 17,939 21,553 2,631 Home Equity 3,085 3,085 355 Automobile 17,086 17,086 212 Other 1 1,650 1,650 48 Total Consumer 39,760 43,374 3,246 Total Impaired Loans with an Allowance Recorded $ 60,020 $ 63,917 $ 5,903 Impaired Loans: Commercial $ 35,442 $ 40,841 $ 2,657 Consumer 39,760 43,374 3,246 Total Impaired Loans $ 75,202 $ 84,215 $ 5,903 December 31, 2018 Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 4,587 $ 4,587 $ — Commercial Mortgage 2,712 6,212 — Construction 1,321 1,321 — Total Commercial 8,620 12,120 — Total Impaired Loans with No Related Allowance Recorded $ 8,620 $ 12,120 $ — Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 1,856 $ 2,099 $ 130 Commercial Mortgage 1,822 1,822 92 Total Commercial 3,678 3,921 222 Consumer Residential Mortgage 19,753 23,635 3,051 Home Equity 3,359 3,359 350 Automobile 17,117 17,117 296 Other 1 2,098 2,098 57 Total Consumer 42,327 46,209 3,754 Total Impaired Loans with an Allowance Recorded $ 46,005 $ 50,130 $ 3,976 Impaired Loans: Commercial $ 12,298 $ 16,041 $ 222 Consumer 42,327 46,209 3,754 Total Impaired Loans $ 54,625 $ 62,250 $ 3,976 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 years ended December 31, 2019 , and December 31, 2018 . Year Ended Year Ended (dollars in thousands) Average Interest Average Interest Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 4,447 $ 284 $ 6,342 $ 310 Commercial Mortgage 8,308 62 4,642 160 Construction 1,243 81 1,360 69 Total Commercial 13,998 427 12,344 539 Total Impaired Loans with No Related Allowance Recorded $ 13,998 $ 427 $ 12,344 $ 539 Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 5,651 $ 82 $ 1,475 $ 100 Commercial Mortgage 3,147 25 623 25 Total Commercial 8,798 107 2,098 125 Consumer Residential Mortgage 18,607 774 20,324 1,080 Home Equity 3,272 156 2,676 121 Automobile 17,529 1,179 16,190 1,116 Other 1 1,783 153 2,624 215 Total Consumer 41,191 2,262 41,814 2,532 Total Impaired Loans with an Allowance Recorded $ 49,989 $ 2,369 $ 43,912 $ 2,657 Impaired Loans: Commercial $ 22,796 $ 534 $ 14,442 $ 664 Consumer 41,191 2,262 41,814 2,532 Total Impaired Loans $ 63,987 $ 2,796 $ 56,256 $ 3,196 1 Comprised of other revolving credit and installment financing. For the year ended December 31, 2017 , the average recorded investment in impaired loans was $60.4 million and the interest income recognized on impaired loans was $2.8 million . For the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , the amount of interest income recognized by the Company within the period that the loans were impaired were primarily related to loans modified in a troubled debt restructuring that were on accrual status. For the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , the amount of interest income recognized using a cash-basis method of accounting during the time within that period 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 $69.1 million and $54.0 million as of December 31, 2019 , and December 31, 2018 , respectively. As of December 31, 2019 , there were $0.3 million commitments to lend additional funds on loans modified in a TDR. As of December 31, 2018 , there were $0.2 million commitments to lend additional funds on loans modified in a TDR. 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 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 years ended December 31, 2019 , and December 31, 2018 . Loans Modified as a TDR for the Loans Modified as a TDR for the Troubled Debt Restructurings (dollars in thousands ) Number of Recorded 1 Increase in Number of Recorded 1 Increase in Commercial Commercial and Industrial 8 $ 17,585 $ 2,465 12 $ 1,449 $ 96 Commercial Mortgage 1 3,623 — 1 1,650 74 Total Commercial 9 21,208 2,465 13 3,099 170 Consumer Residential Mortgage 1 57 0 6 1,458 200 Home Equity 4 368 9 9 1,438 77 Automobile 332 5,911 73 366 7,400 128 Other 2 95 572 17 138 927 25 Total Consumer 432 6,908 99 519 11,223 430 Total 441 $ 28,116 $ 2,564 532 $ 14,322 $ 600 1 The period end balances reflect all partial 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, loans modified in a TDR that defaulted during the year ended December 31, 2019 , and December 31, 2018 , 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. Year Ended December 31, 2019 Year Ended December 31, 2018 TDRs that Defaulted During the Period, (dollars in thousands) Number of Recorded 1 Number of Recorded 1 Commercial Commercial and Industrial — $ — 1 $ 3 Total Commercial — — 1 3 Consumer Residential Mortgage 1 132 — — Home Equity 1 192 — — Automobile 40 607 38 680 Other 2 22 129 34 194 Total Consumer 64 1,060 72 874 Total 64 $ 1,060 73 $ 877 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. 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 $1.0 million as of December 31, 2019 . |
Mortgage Servicing Rights
Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2019 | |
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 $3.1 billion as of December 31, 2019 , and $2.9 billion as of December 31, 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 21 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 $7.3 million for the years ended December 31, 2019 , and December 31, 2018 , and $7.1 million for year ended December 31, 2017 . 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 years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , the change in the fair value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows: (dollars in thousands) 2019 2018 2017 Balance at Beginning of Year $ 1,290 $ 1,454 $ 1,655 Changes in Fair Value: Due to Payoffs (164 ) (164 ) (201 ) Total Changes in Fair Value of Mortgage Servicing Rights (164 ) (164 ) (201 ) Balance at End of Year $ 1,126 $ 1,290 $ 1,454 For the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows: (dollars in thousands) 2019 2018 2017 Balance at Beginning of Year $ 23,020 $ 23,168 $ 22,008 Servicing Rights that Resulted From Asset Transfers 4,485 2,470 3,976 Amortization (3,609 ) (2,618 ) (2,816 ) Balance at End of Year $ 23,896 $ 23,020 $ 23,168 Fair Value: Balance at Beginning of Year $ 29,218 $ 26,716 $ 25,148 Balance at End of Year $ 25,714 $ 29,218 $ 26,716 The key data and assumptions used in estimating the fair value of the Company’s mortgage servicing rights as of December 31, 2019 , and December 31, 2018 were as follows: December 31, 2019 2018 Weighted-Average Constant Prepayment Rate 1 10.76 % 7.01 % Weighted-Average Life (in years) 6.20 7.89 Weighted-Average Note Rate 3.99 % 4.06 % Weighted-Average Discount Rate 2 7.33 % 9.59 % 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 December 31, 2019 , and December 31, 2018 , is presented in the following table. December 31, (dollars in thousands) 2019 2018 Constant Prepayment Rate Decrease in fair value from 25 basis points (“bps”) adverse change $ (296 ) $ (361 ) Decrease in fair value from 50 bps adverse change (586 ) (716 ) Discount Rate Decrease in fair value from 25 bps adverse change (264 ) (325 ) Decrease in fair value from 50 bps adverse change (522 ) (643 ) 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. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | The components of the Company’s premises and equipment as of December 31, 2019 , and December 31, 2018 , were as follows: (dollars in thousands) Cost Accumulated Net Book Value December 31, 2019 Premises $ 360,170 $ (235,031 ) $ 125,139 Equipment 133,725 (72,852 ) 60,873 Finance Leases 6,593 (4,217 ) 2,376 Total $ 500,488 $ (312,100 ) $ 188,388 December 31, 2018 Premises $ 339,441 $ (238,450 ) $ 100,991 Equipment 120,165 (71,767 ) 48,398 Finance Leases 6,593 (4,145 ) 2,448 Total $ 466,199 $ (314,362 ) $ 151,837 Depreciation and amortization (including finance lease amortization) included in noninterest expense was $17.3 million , $14.4 million , and $13.0 million for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , respectively. There was no impairment of the Company’s premises and equipment for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 . |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | The components of the Company’s other assets as of December 31, 2019 , and December 31, 2018 , were as follows: December 31, (dollars in thousands) 2019 2018 Federal Home Loan Bank and Federal Reserve Bank Stock $ 34,093 $ 35,858 Derivative Financial Instruments 28,931 14,604 Low-Income Housing and Other Equity Investments 84,618 85,860 Deferred Compensation Plan Assets 41,464 31,871 Prepaid Expenses 15,140 8,533 Accounts Receivable 20,180 18,996 Other 48,248 35,160 Total Other Assets $ 272,674 $ 230,882 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | Time Deposits As of December 31, 2019 , and December 31, 2018 , the Company’s total time deposits were $1.8 billion and $1.7 billion , respectively. As of December 31, 2019 , the contractual maturities of these time deposits were as follows: (dollars in thousands) Amount 2020 $ 1,425,438 2021 272,921 2022 60,676 2023 27,487 2024 10,641 Thereafter 5,268 Total $ 1,802,431 The amount of time deposits with balances of $100,000 or more was $1.5 billion as of December 31, 2019 , and December 31, 2018 , respectively. As of December 31, 2019 , the contractual maturities of these time deposits were as follows: (dollars in thousands) Amount Three Months or Less $ 545,570 Over Three Months through Six Months 253,868 Over Six Months through Twelve Months 477,384 Over Twelve Months 270,831 Total $ 1,547,653 Public Deposits As of December 31, 2019 , and December 31, 2018 , deposits of governmental entities of $1.2 billion and $1.1 billion |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings Disclosure Abstract | |
Borrowings | Borrowings Details of the Company’s short-term borrowings (original term of one year or less) as of December 31, 2019 , and December 31, 2018 were as follows: December 31, (dollars in thousands) 2019 2018 Securities Sold Under Agreements to Repurchase (short-term) 1 Amounts Outstanding $ 2,200 $ 4,196 Weighted-Average Interest Rate 1.87 % 1.19 % 1 Consists entirely of repurchase agreements with government entities. Excludes long-term repurchase agreements with government entities of $2.1 million and $0.1 million as of December 31, 2019 , and December 31, 2018 , respectively, and long-term repurchase agreements with private institutions of $600.0 million and $500.0 million as of December 31, 2019 , and December 31, 2018 , respectively. The Company’s total securities sold under agreements to repurchase were $604.3 million and $504.3 million as of December 31, 2019 , and December 31, 2018 , respectively. As of December 31, 2019 , all of our repurchase agreements were at fixed interest rates. As of December 31, 2019 , long-term repurchase agreements (original term over one year) placed with government entities were $2.1 million with a weighted-average interest rate of 1.09% and a weighted-average maturity of 635 days . As of December 31, 2019 , long-term repurchase agreements placed with private institutions were $600.0 million with a weighted-average interest rate of 2.68% . Remaining terms ranged from 2022 to 2026 with a weighted-average maturity of 4.0 years . Some of our repurchase agreements with private institutions may be terminated at earlier specified dates by the private institution or in some cases by either the private institution or the Company. If all such agreements were to terminate at the earliest possible date, the weighted-average maturity for our repurchase agreements with private institutions would decrease to 3.4 years . |
Other Debt
Other Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Other Debt | The Company’s other debt as of December 31, 2019 , and December 31, 2018 , were as follows: December 31, (dollars in thousands) 2019 2018 Federal Home Loan Bank Advances $ 75,000 $ 125,000 Finance Lease Obligations 10,565 10,643 Total $ 85,565 $ 135,643 As a member of the FHLB, the Bank may borrow funds from the FHLB in amounts up to 45% of the Bank’s total assets, provided the Bank is able to pledge an adequate amount of qualified assets to secure the borrowings. As of December 31, 2019 , FHLB advances totaled $75.0 million with a weighted-average interest rate of 2.42% and maturity dates during 2020. As of December 31, 2019 , the Company had a remaining line of credit with the FHLB of $2.5 billion . See Note 4 Loans and Leases and the Allowance for Loan and Lease Losses for loans pledged to the FHLB as of December 31, 2019 , and December 31, 2018 . Finance lease obligations relate to office space at the Company’s headquarters. The lease began in 1993 and has a 60 year term. Lease payments are fixed at $0.8 million per year through December 2022 and are negotiable thereafter. As of December 31, 2019 , the Company had an undrawn line of credit with the FRB of $533.5 million . See Note 4 Loans and Leases and the Allowance for Loan and Lease Losses for loans pledged to the FRB as of December 31, 2019 , and December 31, 2018 . As of December 31, 2019 , the annual maturities of the Company’s other debt, exclusive of finance lease obligations, were expected to be as follows: (dollars in thousands) Amount 2020 $ 75,000 2021 — 2022 — 2023 — 2024 — Thereafter — Total $ 75,000 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Regulatory Capital The table below sets forth the minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts and ratios for the Company and the Bank as of December 31, 2019 , and December 31, 2018 : (dollars in thousands) Well Capitalized Company Bank As of December 31, 2019 Shareholders’ Equity $ 1,286,832 $ 1,229,775 Common Equity Tier 1 Capital 1,289,424 1,243,939 Tier 1 Capital 1,289,424 1,243,939 Total Capital 1,406,273 1,360,788 Common Equity Tier 1 Capital Ratio 6.5 % 12.18 % 11.76 % Tier 1 Capital Ratio 8.0 % 12.18 % 11.76 % Total Capital Ratio 10.0 % 13.28 % 12.87 % Tier 1 Leverage Ratio 5.0 % 7.25 % 7.01 % As of December 31, 2018 Shareholders’ Equity $ 1,268,200 $ 1,195,132 Common Equity Tier 1 Capital 1,290,723 1,229,227 Tier 1 Capital 1,290,723 1,229,227 Total Capital 1,404,238 1,342,742 Common Equity Tier 1 Capital Ratio 6.5 % 13.07 % 12.46 % Tier 1 Capital Ratio 8.0 % 13.07 % 12.46 % Total Capital Ratio 10.0 % 14.21 % 13.61 % Tier 1 Leverage Ratio 5.0 % 7.60 % 7.24 % The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by regulators about the components of regulatory capital, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Common Equity Tier 1, Tier 1 and Total Capital. Both Common Equity Tier 1 Capital and Tier 1 Capital are common shareholders’ equity, reduced by certain intangible assets, postretirement benefit liability adjustments, and unrealized gains and losses on investment securities. Total Capital is Tier 1 Capital plus an allowable amount of the reserve for credit losses. Risk-weighted assets are calculated by taking assets and credit equivalent amounts of off-balance-sheet items and assigning them to one of several broad risk categories. Four capital ratios are used to measure capital adequacy: Common Equity Tier 1 Capital divided by risk-weighted assets, as defined; Tier 1 Capital divided by risk-weighted assets; Total Capital divided by risk-weighted assets; and the Tier 1 Leverage ratio, which is Tier 1 Capital divided by quarterly adjusted average total assets. In addition to the minimum risk-based capital requirements, all banks must hold additional capital, referred to as the capital conservation buffer (which is in the form of common equity) under the U.S. Basel III capital framework, to avoid being subject to limits on capital distributions and certain discretionary bonus payments to officers. The capital conservation buffer which was fully phased-in on January 1, 2019, is a minimum of 2.5% of additional capital in addition to the minimum risk-based capital ratios. As of December 31, 2019 , the Company and the Bank were well capitalized as defined in the regulatory framework for prompt corrective action. The capital conservation buffer requirements do not currently result in any limitations on distributions or discretionary bonuses for the Company or the Bank. There were no conditions or events since December 31, 2019 , that management believes have changed the Company or the Bank’s capital classifications. Dividends Dividends paid by the Parent are substantially funded from dividends received from the Bank. The Bank is subject to federal and state regulatory restrictions that limit cash dividends and loans to the Parent. These restrictions generally require advanced approval from the Bank’s regulator for payment of dividends in excess of the sum of net income for the current calendar year and the retained net income of the prior two calendar years. Common Stock Repurchase Program The Parent has a common stock repurchase program in which shares repurchased are held in treasury stock for reissuance in connection with share-based compensation plans and for general corporate purposes. For the year ended December 31, 2019 , the Parent repurchased 1,642,998 shares of common stock under its share repurchase program at an average cost per share of $81.98 and total cost of $134.7 million . From the beginning of the stock repurchase program in July 2001 through December 31, 2019 , the Parent repurchased a total of 56.9 million shares of common stock at an average cost of $40.38 per share and total cost nearly $2.3 billion . From January 1, 2020 , through February 14, 2020 , the Parent repurchased an additional 114,358 shares of common stock at an average cost of $92.63 per share for a total of $10.6 million . The actual amount and timing of future share repurchases, if any, will depend on market conditions, applicable SEC rules and various other factors. Accumulated Other Comprehensive Income The following table presents the components of other comprehensive income (loss), net of tax: (dollars in thousands) Before Tax Tax Effect Net of Tax Year Ended December 31, 2019 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ 30,169 $ 8,001 $ 22,168 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: (Gain) Loss on Sale (152 ) (49 ) (103 ) Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 833 221 612 Net Unrealized Gains (Losses) on Investment Securities 30,850 8,173 22,677 Defined Benefit Plans: Net Actuarial Gains (Losses) Arising During the Period (5,046 ) (1,337 ) (3,709 ) Amortization of Net Actuarial Losses (Gains) 1,598 423 1,175 Amortization of Prior Service Credit (288 ) (76 ) (212 ) Defined Benefit Plans, Net (3,736 ) (990 ) (2,746 ) Other Comprehensive Income (Loss) $ 27,114 $ 7,183 $ 19,931 Year Ended December 31, 2018 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ (11,051 ) $ (2,931 ) $ (8,120 ) 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 2,164 569 1,595 Net Unrealized Gains (Losses) on Investment Securities (8,887 ) (2,362 ) (6,525 ) Defined Benefit Plans: Net Actuarial Gains (Losses) Arising During the Period (4,468 ) (1,184 ) (3,284 ) Amortization of Net Actuarial Losses (Gains) 1,835 460 1,375 Amortization of Prior Service Credit (567 ) (150 ) (417 ) Defined Benefit Plans, Net (3,200 ) (874 ) (2,326 ) Other Comprehensive Income (Loss) $ (12,087 ) $ (3,236 ) $ (8,851 ) Year Ended December 31, 2017 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ (5,263 ) $ (2,078 ) $ (3,185 ) 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 1,982 783 1,199 Net Unrealized Gains (Losses) on Investment Securities (3,281 ) (1,295 ) (1,986 ) Defined Benefit Plans: Net Actuarial Gains (Losses) Arising During the Period 884 349 535 Amortization of Net Actuarial Losses (Gains) 1,382 545 837 Amortization of Prior Service Credit (322 ) (127 ) (195 ) Defined Benefit Plans, Net 1,944 767 1,177 Other Comprehensive Income (Loss) $ (1,337 ) $ (528 ) $ (809 ) 1 The amount relates to the amortization/accretion of unrealized 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: (dollars in thousands) Investment Securities-Available-For-Sale Investment Securities-Held-To-Maturities Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2019 Balance at Beginning of Period $ (10,447 ) $ (4,586 ) $ (36,010 ) $ (51,043 ) Other Comprehensive Income (Loss) Before Reclassifications 22,168 — (3,709 ) 18,459 Cumulative Effect of ASU 2019-04 (3,259 ) 3,259 — — Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (103 ) 612 963 1,472 Total Other Comprehensive Income (Loss) 18,806 3,871 (2,746 ) 19,931 Balance at End of Period $ 8,359 $ (715 ) $ (38,756 ) $ (31,112 ) Year Ended December 31, 2018 Balance at Beginning Period $ (1,915 ) $ (5,085 ) $ (27,715 ) $ (34,715 ) Other Comprehensive Income (Loss) Before Reclassifications (8,120 ) — (3,284 ) (11,404 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 1,595 958 2,553 Total Other Comprehensive Income (Loss) (8,120 ) 1,595 (2,326 ) (8,851 ) Reclassification of the Income Tax Effects of the Tax Act from AOCI (412 ) (1,096 ) (5,969 ) (7,477 ) Balance at End of Period $ (10,447 ) $ (4,586 ) $ (36,010 ) $ (51,043 ) Year Ended December 31, 2017 Balance at Beginning Period $ 1,270 $ (6,284 ) $ (28,892 ) $ (33,906 ) Other Comprehensive Income (Loss) Before Reclassifications (3,185 ) — 535 (2,650 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 1,199 642 1,841 Total Other Comprehensive Income (Loss) (3,185 ) 1,199 1,177 (809 ) Balance at End of Period $ (1,915 ) $ (5,085 ) $ (27,715 ) $ (34,715 ) The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss): 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 (dollars in thousands) Year Ended December 31, 2019 2018 2017 Amortization of Unrealized Holding Gains (Losses) on Investment Securities Held-to-Maturity $ (833 ) $ (2,164 ) $ (1,982 ) Interest Income 221 569 783 Provision for Income Tax (612 ) (1,595 ) (1,199 ) Net of Tax Sales of Investment Securities Available-for-Sale 152 — — Investment Securities Gains (Losses), Net (49 ) — — Provision for Income Tax 103 — — Net of Tax Amortization of Defined Benefit Plans Items Prior Service Credit 2 288 567 322 Net Actuarial Losses 2 (1,598 ) (1,835 ) (1,382 ) (1,310 ) (1,268 ) (1,060 ) Total Before Tax 347 310 418 Provision for Income Tax (963 ) (958 ) (642 ) Net of Tax Total Reclassifications for the Period $ (1,472 ) $ (2,553 ) $ (1,841 ) 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 14 Pension Plans and Postretirement Benefit Plan for additional details). |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share There were no adjustments to net income, the numerator, for purposes of computing basic 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 years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 : Weighted Average Shares 2019 2018 2017 Denominator for Basic Earnings Per Share 40,384,328 41,714,770 42,280,931 Dilutive Effect of Equity Based Awards 265,242 284,629 326,126 Denominator for Diluted Earnings Per Share 40,649,570 41,999,399 42,607,057 Antidilutive Stock Options and Restricted Stock Outstanding 4,905 — — |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
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 our 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 our 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 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 retail insurance products. Products and services from Retail Banking are delivered to customers through 68 branch locations and 387 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 years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 were as follows: (dollars in thousands) Retail Commercial Investment Services and Private Banking Treasury Consolidated Year Ended December 31, 2019 Net Interest Income $ 266,429 $ 185,259 $ 39,374 $ 6,653 $ 497,715 Provision for Credit Losses 11,670 976 15 3,339 16,000 Net Interest Income After Provision for Credit Losses 254,759 184,283 39,359 3,314 481,715 Noninterest Income 86,682 33,362 55,696 7,598 183,338 Noninterest Expense (216,688 ) (84,616 ) (64,974 ) (12,949 ) (379,227 ) Income Before Provision for Income Taxes 124,753 133,029 30,081 (2,037 ) 285,826 Provision for Income Taxes (30,725 ) (28,852 ) (7,929 ) 7,593 (59,913 ) Net Income $ 94,028 $ 104,177 $ 22,152 $ 5,556 $ 225,913 Total Assets as of December 31, 2019 $ 6,732,811 $ 4,254,261 $ 321,700 $ 6,786,724 $ 18,095,496 Year Ended December 31, 2018 Net Interest Income $ 264,459 $ 179,577 $ 41,222 $ 1,094 $ 486,352 Provision for Credit Losses 14,898 (760 ) (61 ) (652 ) 13,425 Net Interest Income After Provision for Credit Losses 249,561 180,337 41,283 1,746 472,927 Noninterest Income 79,004 23,733 55,338 10,848 168,923 Noninterest Expense (211,761 ) (81,344 ) (65,847 ) (12,672 ) (371,624 ) Income Before Provision for Income Taxes 116,804 122,726 30,774 (78 ) 270,226 Provision for Income Taxes (29,172 ) (28,496 ) (8,113 ) 15,157 (50,624 ) Net Income $ 87,632 $ 94,230 $ 22,661 $ 15,079 $ 219,602 Total Assets as of December 31, 2018 $ 6,365,263 $ 3,958,523 $ 349,832 $ 6,470,356 $ 17,143,974 Year Ended December 31, 2017 Net Interest Income $ 264,041 $ 171,038 $ 29,693 $ (7,534 ) $ 457,238 Provision for Credit Losses 14,008 (160 ) (21 ) 3,073 16,900 Net Interest Income After Provision for Credit Losses 250,033 171,198 29,714 (10,607 ) 440,338 Noninterest Income 85,042 21,670 57,105 21,600 185,417 Noninterest Expense (209,807 ) (74,209 ) (61,674 ) (12,001 ) (357,691 ) Income Before Provision for Income Taxes 125,268 118,659 25,145 (1,008 ) 268,064 Provision for Income Taxes (44,545 ) (41,797 ) (9,303 ) 12,253 (83,392 ) Net Income $ 80,723 $ 76,862 $ 15,842 $ 11,245 $ 184,672 Total Assets as of December 31, 2017 $ 5,936,568 $ 3,742,991 $ 336,455 $ 7,073,038 $ 17,089,052 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits The Company has defined contribution plans, defined benefit plans, and a postretirement benefit plan. Defined Contribution Plans The Bank of Hawaii Retirement Savings Plan (the “Savings Plan”) has three Company contribution components in addition to employee contributions: 1) 401(k) matching, as described below; 2) a 3% fixed amount based on eligible compensation; and 3) a discretionary value-sharing contribution. Under the 401(k) matching component, participating employees may contribute up to 50% of their eligible compensation (within federal limits) to the Savings Plan. The Company makes matching contributions on behalf of participants equal to $1.25 for each $1.00 contributed by participants, up to 2% of the participants’ eligible compensation, and $0.50 for every $1.00 contributed by participants over 2% , up to 5% of the participants’ eligible compensation. A 3% fixed contribution and a discretionary value-sharing contribution, that is linked to the Company’s financial goals, are made regardless of whether the participating employee contributes to the Savings Plan and are invested in accordance with the participant’s selection of investment options available under the Savings Plan. The Company also has a non-qualified savings plan which covers certain employees with compensation exceeding Internal Revenue Service (“IRS”) limits on pay amounts in the allocation of the Savings Plan’s benefits. Total expense for all components of the Company’s defined contribution plans was $15.2 million , $14.5 million , and $13.5 million for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , respectively. Defined Benefit Plans The Company has two defined benefit plans (the “Pension Plans”). In 1995, the Company froze its non-contributory, qualified defined benefit retirement plan (the “Retirement Plan”) and the excess retirement plan (the “Excess Plan”), which covered employees of the Company and participating subsidiaries who met certain eligibility requirements. Beginning January 1, 2001, the Pension Plans no longer provided for compensation increases in the determination of benefits. The projected benefit obligation is equal to the accumulated benefit obligation due to the frozen status of the Pension Plans. The assets of the Retirement Plan primarily consist of equity and fixed income mutual funds. The Excess Plan is a non-qualified excess retirement benefit plan which covers certain employees of the Company and participating subsidiaries with compensation exceeding IRS limits on pay amounts applicable to the Pension Plan’s benefit formula. The Excess Plan has no plan assets. The Excess Plan’s projected benefit obligation and accumulated benefit obligation were $3.6 million for December 31, 2019 , and December 31, 2018 . Postretirement Benefit Plan The Company’s postretirement benefit plan provides retirees hired before January 1, 2012, with medical and dental insurance coverage. For eligible participants that retired before 2008 and met certain age requirements, the Company and retiree share in the cost of providing postretirement benefits where both the employer and retiree pay a portion of the insurance premiums. Eligible participants who retired before 2008 who did not meet certain age requirements continued on the Company’s benefit plans, but pay for their full insurance premiums. Participants who retired on or after January 1, 2008, who had medical or dental coverage under the Company’s plans immediately before retirement and meet certain age and years of service requirements as of December 31, 2008, are also eligible to participate in the Company’s benefit plans, but must pay for their full insurance premiums. Retirees age 65 and older are provided with a Medicare supplemental plan subsidy. Most employees of the Company who have met certain eligibility requirements are covered by this plan. Participants who retired on or after January 1, 2008, who met certain age and/or years of service requirements, are eligible for the Health Reimbursement Account (“HRA”) program. The HRA program provides retirees with an initial credit based on years of service. Thereafter, an annual credit up to a maximum of $1,200 is provided into the HRA. The retiree may use the HRA for medical, vision, prescription drug and dental premiums, co-payments, and medically necessary health care expenses that are not covered by any medical or dental insurance program or flexible health spending account. The plan was amended to provide access-only coverage for employees hired on or after January 1, 2012, and lowered eligibility for access from age 55 to age 50. These retirees continue on the medical and dental plan until age 65 paying the full premium. As of December 31, 2019 , and December 31, 2018 , the Company had no segregated assets to provide for postretirement benefits. The following table provides a reconciliation of changes in benefit obligation and fair value of plan assets, as well as the funded status recognized in the Company’s consolidated statements of condition for the Pension Plans and postretirement benefit plan for the years ended December 31, 2019 , and December 31, 2018 . Pension Benefits Postretirement Benefits (dollars in thousands) 2019 2018 2019 2018 Benefit Obligation at Beginning of Year $ 102,662 $ 110,080 $ 23,452 $ 24,206 Service Cost — — 455 457 Interest Cost 4,401 4,193 1,025 936 Plan Amendment 3 — — — — Actuarial Losses (Gains) 10,359 (5,031 ) 4,095 (869 ) Employer Benefits Paid 1 (6,785 ) (6,580 ) (1,456 ) (1,278 ) Benefit Obligation at End of Year $ 110,637 $ 102,662 $ 27,571 $ 23,452 Fair Value of Plan Assets at Beginning of Year $ 85,553 $ 96,908 $ — $ — Actual Return on Plan Assets 14,400 (5,246 ) — — Employer Contributions 470 471 1,456 1,278 Employer Benefits Paid 1 (6,785 ) (6,580 ) (1,456 ) (1,278 ) Fair Value of Plan Assets at End of Year $ 93,638 $ 85,553 $ — $ — Funded Status at End of Year 2 $ (16,999 ) $ (17,109 ) $ (27,571 ) $ (23,452 ) 1 Participants' contributions relative to the postretirement benefit plan were offset against employer benefits paid in the table above. Participants' contributions for postretirement benefits were $0.7 million and $0.6 million for the years ended December 31, 2019 , and December 31, 2018 , respectively. 2 Amounts are recognized in Retirement Benefits Payable in the consolidated statements of condition. 3 For certain retirees, medical premiums were changed to a full retiree rate instead of a blended rate. The changes in actuarial losses (gains) related to the Company’s Pension and postretirement benefit Plans are mainly due to changes in discount rates for the years ended December 31, 2019 , and December 31, 2018 . For the year ended December 31, 2019 , the change in discount rate resulted in a $10.8 million increase to the Company’s Pension Plans liability and a $3.4 million increase to the Company’s postretirement benefit plan liability. For the year ended December 31, 2018 , the change in discount rate resulted in a $5.4 million reduction to the Company’s Pension Plans liability and a $1.6 million reduction to the Company’s postretirement benefit plan liability. The following presents the amounts recognized in the Company’s accumulated other comprehensive income for the Pension Plans and postretirement benefit plan as of December 31, 2019 , and December 31, 2018 . Pension Benefits Postretirement Benefits (dollars in thousands) 2019 2018 2019 2018 Amounts Recognized in Accumulated Other Net Actuarial Gains (Losses) $ (41,404 ) $ (42,127 ) $ 1,003 $ 4,261 Net Prior Service Credit — — 1,645 1,856 Total Amounts Recognized in Accumulated Other $ (41,404 ) $ (42,127 ) $ 2,648 $ 6,117 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 years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 . Pension Benefits Postretirement Benefits (dollars in thousands) 2019 2018 2017 2019 2018 2017 Service Cost $ — $ — $ — $ 455 $ 457 $ 453 Interest Cost 4,401 4,193 4,665 1,025 936 1,093 Expected Return on Plan Assets (4,993 ) (5,122 ) (5,011 ) — — — Amortization of: Prior Service Credit 1 — — — (288 ) (567 ) (322 ) Net Actuarial Losses (Gains) 1 1,937 2,099 1,817 (339 ) (264 ) (435 ) Net Periodic Benefit Cost $ 1,345 $ 1,170 $ 1,471 $ 853 $ 562 $ 789 1 Represents reclassification adjustments from accumulated other comprehensive income during the period. Assumptions used to determine the benefit obligations as of December 31, 2019 , and December 31, 2018 , for the Company’s Pension Plans and postretirement benefit plan were as follows: Pension Benefits Postretirement Benefits 2019 2018 2019 2018 Weighted Average Assumptions as of December 31: Discount Rate 3.36 % 4.41 % 3.42 % 4.48 % Health Care Cost Trend Rate Assumed For Next Year — — 5.70 % 6.00 % The health care cost trend rate is assumed to decrease annually, until reaching the ultimate trend rate of 4.5% in 2036 . Assumptions used to determine the net periodic benefit cost for the Company’s Pension Plans and postretirement benefit plan for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , were as follows: Pension Benefits Postretirement Benefits 2019 2018 2017 2019 2018 2017 Weighted Average Assumptions as of December 31: Discount Rate 4.41 % 3.90 % 4.45 % 4.48 % 3.96 % 4.57 % Expected Long-Term Rate of Return on Plan Assets 5.75 % 5.75 % 5.75 % — — — Health Care Cost Trend Rate — — — 6.00 % 6.30 % 6.50 % A combination of factors is used by management in determining the expected long-term rate of return on plan assets. Historical return experience for major asset categories are evaluated and current market factors, such as inflation and interest rates, are considered in determining the expected long-term rate of return assumption. The Company expects to contribute $0.4 million to the Pension Plans and $1.0 million to the postretirement benefit plan for the year ending December 31, 2020 . As of December 31, 2019 , expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter were as follows: (dollars in thousands) Pension Benefits Postretirement Benefits 2020 $ 7,073 $ 1,027 2021 7,215 1,064 2022 7,229 1,146 2023 7,238 1,224 2024 7,240 1,332 Years 2025-2029 35,104 8,612 Retirement Plan Assets The Company’s overall investment strategy is to maintain the purchasing power of the current assets and all future contributions by producing positive rates of return on plan assets; achieve capital growth towards the attainment of full funding of the Retirement Plan’s termination liability; maximize returns within reasonable and prudent levels of risk; and control costs of administering the plan and managing the investments. The long-term investment objective is to achieve an overall annualized total return, gross of fees, above the blended benchmark index comprised of 36% MSCI USA IMI Index, 24% MSCI ACWI ex-US Index, and 40% Barclays Aggregate Bond Index. Subject to liquidity requirements, the asset allocation targets are 60% for equity securities, 40% for fixed income securities with a 10% to 20% range permitted from the strategic targets, and zero to 20% for cash. Within the equity securities portfolio, the range for domestic securities is from 50% to 100% and the range for international securities is from 0% to 50% . All assets selected for the Retirement Plan must have a readily ascertainable market value and must be readily marketable. Due to market fluctuations or cash flows, the allocation for each asset class may be breached by as much as 5% on a temporary basis. However, asset allocations are expected to conform to target ranges within 90 days of such an occurrence. The fair values of the Retirement Plan assets as of December 31, 2019 , and December 31, 2018 , by asset category were as follows: Fair Value Measurements Asset Category (dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total as of Dec. 31, 2019 Total as of Dec. 31, 2018 Cash $ 1,269 $ — $ — $ 1,269 $ 726 Equity Securities – Mutual Funds: Large-Cap 1,731 — — 1,731 1,593 Mixed-Cap 29,336 — — 29,336 25,298 International 23,961 — — 23,961 21,621 Emerging Market 2,342 — — 2,342 2,150 Fixed Income Securities – Mutual Funds 34,999 — — 34,999 34,165 Total $ 93,638 $ — $ — $ 93,638 $ 85,553 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company has share-based compensation plans which allow grants of stock options, restricted stock, stock appreciation rights, and restricted stock units to its employees and non-employee directors. The Company’s employee stock option plans are shareholder approved and administered by the Human Resources and Compensation Committee of the Board of Directors. Stock options provide grantees the option to purchase shares of the Parent’s common stock at a specified exercise price and, generally, expire 10 years from the date of grant. Stock option grants include incentive and non-qualified stock options whose vesting may be subject to one or more criteria, including employment or achievement of Company performance measures. Stock option exercise prices were equal to the quoted market price of the Parent’s common stock on the date of grant. Restricted stock provides grantees with rights to shares of common stock upon completion of one or more criteria, including service period, performance or other conditions as established by the Compensation Committee, such as vesting tied to the Company’s financial performance relative to the peer group or achievement of an absolute financial performance target. During the restriction period, all shares are considered outstanding and dividends are paid on the restricted stock. Generally, restricted stock vests over periods ranging from one year to four years from the date of grant. Restricted stock and dividends may be forfeited if an employee terminates prior to vesting. As of December 31, 2019 , total shares authorized under the plans were 2.1 million shares, of which 1.7 million shares were available for future grants. The Company recognizes compensation expense, measured as the fair value of the share-based award on the date of grant, on a straight-line basis over the requisite service period. Share-based compensation is recorded in the statements of income as a component of salaries and benefits for employees and as a component of other noninterest expense for non-employee directors, with a corresponding increase to capital surplus in shareholders’ equity. For the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , compensation expense and the related income tax benefit recognized for stock options and restricted stock were as follows: (dollars in thousands) 2019 2018 2017 Compensation Expense $ 8,338 $ 8,146 $ 7,369 Income Tax Benefit 2,210 2,160 2,910 Restricted Stock As of December 31, 2019 , unrecognized compensation expense related to unvested restricted stock was $11.0 million . The unrecognized compensation expense is expected to be recognized over a weighted average period of 1.81 years . The following table presents the activity for restricted stock: Number of Shares Weighted Average Grant Date Fair Value Unvested as of December 31, 2016 270,523 $ 60.58 Granted 124,460 84.53 Vested (52,822 ) 60.06 $ 4,493 Forfeited (22,058 ) 69.46 Unvested as of December 31, 2017 320,103 $ 69.36 Granted 120,173 83.87 Vested (110,231 ) 59.41 $ 9,081 Forfeited (15,558 ) 73.82 Unvested as of December 31, 2018 314,487 $ 78.17 Granted 130,093 82.82 Vested (107,759 ) 66.46 $ 8,910 Forfeited (26,872 ) 83.34 Unvested as of December 31, 2019 1 309,949 $ 83.75 1 As of December 31, 2019 , 43,310 shares were unvested from service-based grants. Restricted Stock Units There were no RSUs granted during 2019 , 2018 , and 2017 . During 2016 , the Company granted RSUs payable solely in cash. All RSUs were fully vested as of December 31, 2019. The RSUs vest over periods ranging from three years to four years from the date of grant and are subject to forfeiture until performance and employment targets are achieved. Upon vesting, the RSUs are converted to cash based on the closing stock price on the vesting date. Total recognized compensation expense related to the RSUs was $1.0 million , $0.6 million , and $3.4 million for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , respectively. The following table presents the activity for RSU: Number of Units Weighted Average Fair Value of Restricted Balance as of December 31, 2016 154,832 $ 59.04 Vested (29,281 ) 58.74 $ 2,516 Forfeited (9,062 ) 60.17 Balance as of December 31, 2017 116,489 $ 60.22 Vested (62,252 ) 57.00 $ 5,127 Forfeited (2,173 ) 63.92 Balance as of December 31, 2018 52,064 $ 63.92 Vested (52,064 ) 82.23 $ 4,311 Balance as of December 31, 2019 — $ — Stock Options There were no stock options granted for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 . All previously issued stock options granted were fully vested prior to December 31, 2017 . The Company reissues treasury stock to satisfy stock option exercises. The following table presents the activity related to stock options under all plans for the year ended December 31, 2019 : Stock Weighted Weighted Aggregate Stock Options Outstanding as of January 1, 2019 263,888 $ 45.27 Exercised (25,164 ) 43.74 Forfeited (1,666 ) 47.72 Stock Options Outstanding as of December 31, 2019 237,058 45.44 2.0 $ 11,787 Stock Options Vested and Exercisable as of December 31, 2019 237,058 45.44 2.0 11,787 The following summarizes certain stock option activity of the Company for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 : (dollars in thousands) 2019 2018 2017 Intrinsic Value of Stock Options Exercised $ 1,106 $ 1,634 $ 5,991 Cash Received from Stock Options Exercised 1,473 1,791 7,502 Tax Benefits Realized from Stock Options Exercised 727 240 2,003 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Provision for Income Taxes The components of the Company’s provision for income taxes for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , were as follows: (dollars in thousands) 2019 2018 2017 Current: Federal $ 60,902 $ 45,464 $ 73,176 State 14,426 11,434 6,039 Total Current 75,328 56,898 79,215 Deferred: Federal (9,630 ) (2,172 ) 5,042 State (5,785 ) (4,102 ) (865 ) Total Deferred (15,415 ) (6,274 ) 4,177 Provision for Income Taxes $ 59,913 $ 50,624 $ 83,392 The tax effects of fair value adjustments on AFS investment securities, the amortization of unrealized gains and losses related to investment securities transferred to HTM, and the minimum pension liability adjustment are recorded directly to consolidated shareholders’ equity. The Company elected to adopt ASU No. 2016-09 “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” in the first quarter of 2017, which requires the Company to record excess tax benefits related to stock options as a reduction of the provision for income taxes, whereas they were previously recognized in equity. The net tax charge recorded directly to consolidated shareholders’ equity was $7.1 million for the year ended December 31, 2019 . The net tax benefit recorded directly to consolidated shareholders’ equity was $3.2 million and $0.5 million for the years ended December 31, 2018 , and December 31, 2017 , respectively. Deferred Tax Liabilities and Assets As of December 31, 2019 , and December 31, 2018 , significant components of the Company’s deferred tax liabilities and assets were as follows: December 31, (dollars in thousands) 2019 2018 Deferred Tax Liabilities: Accelerated Depreciation $ (4,064 ) $ (2,864 ) Accrued Pension Cost (11,270 ) (11,270 ) Federal Home Loan Bank Stock (3,416 ) (3,416 ) Lease Transactions (48,487 ) (53,230 ) Operating Lease Liabilities (26,731 ) — Energy Tax Credits (2,370 ) (5,274 ) Net Unrealized Gains on Investments Securities (2,751 ) — Investment in Variable Interest Entities (3,783 ) (4,574 ) Deferred Loan Fees (6,498 ) (6,688 ) Originated Mortgage Servicing Rights (6,840 ) (6,548 ) Other (1,597 ) (1,420 ) Gross Deferred Tax Liabilities (117,807 ) (95,284 ) Deferred Tax Assets: Allowance for Loan Losses 30,951 30,045 Minimum Pension Liability 13,980 12,989 Accrued Expenses 18,159 14,805 Postretirement Benefit Obligations 8,130 8,396 Capital Lease Expenses 2,171 2,172 Operating Lease Right-of-Use Assets 28,685 — Restricted Stock 4,369 5,178 Net Unrealized Losses on Investments Securities — 5,421 Deductible State and Local Taxes 3,558 3,242 Low Income Housing Investments 2,157 805 Other 6,236 4,244 Gross Deferred Tax Assets Before Valuation Allowance 118,396 87,297 Valuation Allowance (2,460 ) (1,102 ) Gross Deferred Tax Assets After Valuation Allowance 115,936 86,195 Net Deferred Tax Liabilities $ (1,871 ) $ (9,089 ) Both positive and negative evidence was considered by management in determining the need for a valuation allowance. Negative evidence included the uncertainty regarding the generation of capital gains in future years and restrictions on the ability to sell low-income housing investments during periods when carrybacks of capital losses are allowed. Positive evidence included capital gains in the carryback years. After considering all available evidence, management determined that a valuation allowance to offset deferred tax assets related to low-income housing investments that can only be used to offset capital gains was appropriate. Management determined that a valuation allowance was not required for the remaining deferred tax assets because it is more likely than not these assets will be realized through future reversals of existing taxable temporary difference and future taxable income exclusive of reversing temporary differences. The Tax Act prohibits the carryback of net operating losses (NOLs) generated in tax year ending after December 31, 2017. This eliminated consideration of taxable income in prior carryback years as an income source for prospective NOLs. Certain events covered by Internal Revenue Code Section 593(e) will trigger a recapture of base year reserves of acquired thrift institutions. The base year reserves of acquired thrift institutions would be recaptured if an entity ceases to qualify as a bank for federal income tax purposes. The base year reserves of thrift institutions also remain subject to income tax penalty provisions that, in general, require recapture upon certain stock redemptions of, and excess distributions to, shareholders. As of December 31, 2019 , retained earnings included $18.2 million of base year reserves for which the deferred federal income tax liability of $4.8 million has not been recognized. Effective Tax Rate The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 : 2019 2018 2017 Statutory Federal Income Tax Rate 21.00 % 21.00 % 35.00 % Increase (Decrease) in Income Tax Rate Resulting From: State Taxes, Net of Federal Income Tax 2.53 2.29 1.50 Tax Reserve Adjustments 1 (0.03 ) — 0.04 Low-Income Housing Investments 0.60 0.22 (1.18 ) Investment Tax Credits (0.84 ) (1.04 ) (1.03 ) Bank-Owned Life Insurance (0.51 ) (0.55 ) (0.85 ) Tax-Exempt Income (0.53 ) (1.29 ) (2.57 ) Excess Tax Benefits - Stock Compensation (0.22 ) (0.34 ) (0.83 ) Leveraged Lease (1.54 ) (0.83 ) (0.03 ) Tax Reform Effects — (0.75 ) 1.25 Other 1 0.50 0.02 (0.19 ) Effective Tax Rate 20.96 % 18.73 % 31.11 % 1 Certain prior period information has been reclassified to conform to current presentation. The Tax Cuts and Jobs Act changed the corporate tax rate from 35% to 21%, effective January 1, 2018. The impact on deferred tax assets and liabilities was recognized as an additional income tax expense of $3.6 million in the fourth quarter of 2017, when the act was signed into law. Unrecognized Tax Benefits The Company is required to record a liability, referred to as an unrecognized tax benefit (“UTB”), for the entire amount of benefit taken in a prior or future income tax return when the Company determines that a tax position has a less than 50% likelihood of being accepted by the taxing authority. The following presents a reconciliation of the Company’s liability for UTBs for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 : (dollars in thousands) 2019 2018 2017 Unrecognized Tax Benefits at Beginning of Year $ 5,541 $ 5,292 $ 6,574 Gross Increases, Related to Tax Positions Taken in a Prior Period 673 157 273 Gross Increases, Related to Current Period Tax Positions 715 885 1,124 Lapse of Statute of Limitations (809 ) (793 ) (2,679 ) Unrecognized Tax Benefits at End of Year $ 6,120 $ 5,541 $ 5,292 As of December 31, 2019 , and December 31, 2018 , $6.1 million and $5.5 million , respectively, in liabilities for UTBs was related to UTBs that if reversed would have an impact on the Company’s effective tax rate. Management believes that it is reasonably possible that the Company’s liability for UTBs could further decrease as a result of the expiration of statutes of limitations within the next 12 months. However, management is currently not able to estimate a range of possible change in the amount of the liability for UTBs recorded as of December 31, 2019 . The Company classifies interest and penalties, if any, related to the liability for UTBs as a component of the provision for income taxes. For the years ended December 31, 2019 , the Company recorded a net tax provision of $0.5 million for interest and penalties. For the year ended December 31, 2018 , and December 31, 2017 , the Company recorded a net tax benefit of less than $0.1 million , respectively, for interest and penalties. As of December 31, 2019 , and December 31, 2018 , the Company had accrued $1.4 million and $0.9 million , respectively, for the payment of possible interest and penalties. The federal tax returns for 2017 through 2018 remain subject to examination. The IRS audit for tax year 2016 concluded with no change needed to the tax return. The Company's State of Hawaii income tax returns for 2016 through 2018 remain subject to examination by the taxing authorities. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 , and December 31, 2018 , were as follows: December 31, 2019 December 31, 2018 (dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Interest Rate Lock Commitments $ 48,677 $ 1,280 $ 33,133 $ 871 Forward Commitments 82,735 (182 ) 34,102 (352 ) Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps 802,389 26,070 505,034 (2,537 ) Pay Fixed/Receive Variable Swaps 802,389 (4,777 ) 505,034 6,082 Foreign Exchange Contracts 85,499 163 55,663 793 Conversion Rate Swap Agreement 114,499 — 80,746 — The following table presents the Company’s derivative financial instruments, their fair values, and their location in the consolidated statements of condition as of December 31, 2019 , and December 31, 2018 : December 31, 2019 December 31, 2018 Derivative Financial Instruments Not Designated 1 (dollars in thousands) Asset Liability Asset Liability Interest Rate Lock Commitments $ 1,280 $ — $ 877 $ 6 Forward Commitments 23 205 4 356 Interest Rate Swap Agreements 27,344 6,051 12,915 9,370 Foreign Exchange Contracts 284 121 808 15 Total $ 28,931 $ 6,377 $ 14,604 $ 9,747 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 years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 : Location of Net Gains (Losses)Recognized in the Year Ended December 31, Derivative Financial Instruments Not Designated (dollars in thousands) 2019 2018 2017 Interest Rate Lock Commitments Mortgage Banking $ 12,185 $ 3,534 $ 5,643 Forward Commitments Mortgage Banking (2,340 ) 821 (1,275 ) Interest Rate Swap Agreements Other Noninterest Income 7,172 1,835 698 Foreign Exchange Contracts Other Noninterest Income 2,891 3,163 3,296 Conversion Rate Swap Agreement Investment Securities Gains (Losses), Net (453 ) (1,000 ) — Total $ 19,455 $ 8,353 $ 8,362 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 December 31, 2019 , and December 31, 2018 , 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, 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 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 19 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. The majority of the Company’s swap agreements executed with third party financial institutions are now 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. In September 2019, Visa announced a reduction of the conversion ratio from 1.6298 to 1.6228 effective September 27, 2019. As a result, the Company recorded a $0.5 million liability in September 2019 which represented the amount paid to the buyers of the Visa Class B shares in October 2019. 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 represented the amount paid to the buyers of the Visa Class B shares in July 2018. As of December 31, 2019 , 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. See Note 3 Investment Securities for more information. |
Affordable Housing Projects Tax
Affordable Housing Projects Tax Credit Partnerships Affordable Housing Projects Tax Credit Partnerships | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Affordable Housing Projects Tax Credit Partnerships | Affordable Housing Projects Tax Credit Partnerships The Company makes equity investments in various limited partnerships or limited liability companies 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 these entities 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 or non-managing member in each LIHTC limited partnership or limited liability company, respectively. Each of these entities is managed by an unrelated third-party general partner or managing member who exercises significant control over the affairs of the entity. The general partner or managing member has all the rights, powers and authority granted or permitted to be granted to a general partner of a limited partnership or managing member of a limited liability company. Duties entrusted to the general partner or managing member 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) or non-managing member(s) relating to the approval of certain transactions, the limited partner(s) and non-managing members may not participate in the operation, management, or control of the entity’s business, transact any business in the entity’s name or have any power to sign documents for or otherwise bind the entity. In addition, the general partner or managing member may only be removed by the limited partner(s) or managing member(s) in the event of a failure to comply with the terms of the agreement or negligence in performing its duties. The general partner or managing member of each entity has both the power to direct the activities which most significantly affect the performance of each entity 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 entity. 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 $76.3 million and $73.7 million as of December 31, 2019 , and December 31, 2018 , respectively, and are included in other assets in the consolidated statements of condition. Unfunded Commitments As of December 31, 2019 , the expected payments for unfunded affordable housing commitments were as follows: (dollars in thousands) Amount 2020 $ 14,286 2021 5,310 2022 79 2023 55 2024 55 Thereafter 1,485 Total Unfunded Commitments $ 21,270 The following table presents tax credits and other tax benefits recognized and amortization expense related to affordable housing for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 . (dollars in thousands) 2019 2018 2017 Effective Yield Method Tax credits and other tax benefits recognized $ 11,719 $ 13,572 $ 13,569 Amortization Expense in Provision for Income Taxes 7,566 8,311 8,373 Proportional Amortization Method Tax credits and other tax benefits recognized $ 3,014 $ 1,641 $ 1,040 Amortization Expense in Provision for Income Taxes 2,578 1,332 800 There were no impairment losses related to LIHTC investments for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 |
Balance Sheet Offsetting
Balance Sheet Offsetting | 12 Months Ended |
Dec. 31, 2019 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting | Balance Sheet Offsetting Interest Rate 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 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 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 a net liability positions with its financial institution counterparties totaling $5.1 million and $0.3 million as of December 31, 2019 , and December 31, 2018 , respectively. See Note 17 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, will be 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 17 Derivative Financial Instruments for more information. Securities Sold Under Agreements to Repurchase 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 December 31, 2019 , and December 31, 2018 , 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 December 31, 2019 Class of Collateral Pledged: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ — $ 199,173 $ 38,065 $ 237,238 Debt Securities Issued by States and Political Subdivisions 1,200 1,100 — 490 2,790 Mortgage-Backed Securities: Residential - Government Agencies — 1,516 25,827 88,391 115,734 Residential - U.S. Government-Sponsored Enterprises — — — 248,544 248,544 Total $ 1,200 $ 2,616 $ 225,000 $ 375,490 $ 604,306 December 31, 2018 Class of Collateral Pledged: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ — $ 198,442 $ 117,021 $ 315,463 Debt Securities Issued by States and Political Subdivisions 1,906 1,590 — — 3,496 Mortgage-Backed Securities: Residential - Government Agencies 800 — 26,558 70,341 97,699 Residential - U.S. Government-Sponsored Enterprises — — — 87,638 87,638 Total $ 2,706 $ 1,590 $ 225,000 $ 275,000 $ 504,296 The following table presents the assets and liabilities subject to an enforceable master netting arrangement, or repurchase agreements, as of December 31, 2019 , and December 31, 2018 . The swap agreements we have 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 1 Net Amount December 31, 2019 Assets: Interest Rate Swap Agreements: Institutional Counterparties $ 584 $ — $ 584 $ 584 $ — $ — Liabilities: Interest Rate Swap Agreements: Institutional Counterparties 5,361 — 5,361 584 3,818 959 Repurchase Agreements: Private Institutions 600,000 — 600,000 — 600,000 — Government Entities 4,306 — 4,306 — 4,306 — Total Repurchase Agreements $ 604,306 $ — $ 604,306 $ — $ 604,306 $ — December 31, 2018 Assets: Interest Rate Swap Agreements: Institutional Counterparties $ 7,572 $ — $ 7,572 $ 1,490 $ — $ 6,082 Liabilities: Interest Rate Swap Agreements: Institutional Counterparties 1,490 — 1,490 1,490 — — Repurchase Agreements: Private Institutions 500,000 — 500,000 — 500,000 — Government Entities 4,296 — 4,296 — 4,296 — Total Repurchase Agreements $ 504,296 $ — $ 504,296 $ — $ 504,296 $ — 1 The application of collateral cannot reduce the net amount below zero. Therefore, excess collateral is not reflected in this table. For repurchase agreements with private institutions, the fair value of investment securities pledged was $645.3 million and $526.7 million as of December 31, 2019 , and December 31, 2018 , respectively. For repurchase agreements with government entities, the fair value of investment securities pledged was $5.5 million and $6.8 million as of December 31, 2019 , and December 31, 2018 , respectively. |
Commitments, Contingencies, and
Commitments, Contingencies, and Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments, Contingencies, and Guarantees The Company’s credit commitments as of December 31, 2019 , were as follows: (dollars in thousands) December 31, 2019 Unfunded Commitments to Extend Credit $ 2,713,937 Standby Letters of Credit 81,000 Commercial Letters of Credit 16,981 Total $ 2,811,918 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. Assets valued at $49.1 million secured certain specifically identified standby letters of credit as of December 31, 2019 . As of December 31, 2019 , the standby and commercial letters of credit had remaining terms ranging from 1 to 14 months. Contingencies The Company, along with other members of Visa, are parties to Loss and Judgment Sharing Agreements (the “Agreements”), which provide that the Company along with other member banks of Visa, will share, based on their proportionate interests in Visa, in any losses from certain litigation specified in the Agreements. In March 2008, Visa funded an escrow account from its initial public offering to settle claims covered under the Agreements. In connection with the initial public offering, the Company received restricted Class B common stock in Visa. Should the escrow account established by Visa not be sufficient to cover litigation claims specified in the Agreements, 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 December 31, 2019 , management believes that the Company’s indemnification of Visa, related to the costs of these lawsuits, will be sufficiently funded from the escrow account or through future reductions in the conversion ratio. See Note 3 Investment Securities and Note 17 Derivative Financial Instruments for more information. On September 9, 2016, a purported class action lawsuit was filed by a Bank customer primarily alleging Bank of Hawaii’s practice of determining whether consumer deposit accounts were overdrawn based on “available balance” (which deducts debit card transactions that have taken place but which have not yet been posted) was not properly applied or disclosed to customers. On December 6, 2019, the parties executed a settlement agreement subject to court approval. The settlement provides for forgiveness of certain related and previously charged off overdraft fees, and a payment by the Company of $8.0 million into a class settlement fund the proceeds of which will be used to refund class members, and to pay attorneys’ fees, administrative and other costs, in exchange for a complete release of all claims asserted against the Company. Although the Company previously established a $2.0 million reserve relating to this claim, the reserve has been increased to a total of $8.0 million as of December 31, 2019 . In addition to the litigation noted above, the Company is subject to various other pending and threatened legal proceedings arising out of 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 Fannie Mae. The Company also pools FHA insured and VA guaranteed residential mortgage loans for sale to 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 December 31, 2019 , the unpaid principal balance of residential mortgage loans sold by the Company was $2.8 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. For the year ended December 31, 2019 , the Company repurchased three residential mortgage loans with an aggregate unpaid principal balance totaling $0.9 million as a result of the representation and warranty provisions contained in these contracts. The loans were delinquent as to principal and interest at the time of repurchase, however, no material losses were incurred related to these repurchases. As of December 31, 2019 , 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 year ended December 31, 2019 , the Company had no repurchase requests related to loan servicing activities. As of December 31, 2019 , 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 December 31, 2019 , 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 December 31, 2019 , 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 | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Fair Value Hierarchy The following is a description of the valuation methodologies and key inputs used to measure assets and liabilities recorded at fair value on a recurring 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 a second source. The Company’s third-party pricing service has also established processes for us to submit inquiries regarding quoted prices. Periodically, based on these reviews, the Company will challenge the quoted prices provided by the Company’s 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. Generally, we do not adjust the price from the third-party service provider. 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. The information provided is comprised of market reference data, which may include reported trades; bids, offers, or broker/dealer quotes; benchmark yields and spreads; as well as other reference data as appropriate. 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. 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 interest rate lock commitments (“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 December 31, 2019 , and December 31, 2018 , the conversion rate swap agreements were valued at zero as reductions to the conversion ratio were neither probable nor reasonably estimable by management. See Note 17 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 December 31, 2019 , and December 31, 2018 : (dollars in thousands) Quoted Prices Significant Significant Total December 31, 2019 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 1,155 $ 219,976 $ — $ 221,131 Debt Securities Issued by States and Political Subdivisions — 55,097 — 55,097 Debt Securities Issued by U.S. Government-Sponsored Enterprises — 22,147 — 22,147 Debt Securities Issued by Corporations — 336,321 — 336,321 Mortgage-Backed Securities: Residential - Government Agencies — 1,172,826 — 1,172,826 Residential - U.S. Government-Sponsored Enterprises — 586,761 — 586,761 Commercial - Government Agencies — 224,720 — 224,720 Total Mortgage-Backed Securities — 1,984,307 — 1,984,307 Total Investment Securities Available-for-Sale 1,155 2,617,848 — 2,619,003 Loans Held for Sale — 39,062 — 39,062 Mortgage Servicing Rights — — 1,126 1,126 Other Assets 41,464 — — 41,464 Derivatives 1 — 308 28,623 28,931 Total Assets Measured at Fair Value on a $ 42,619 $ 2,657,218 $ 29,749 $ 2,729,586 Liabilities: Derivatives 1 $ — $ 327 $ 6,050 $ 6,377 Total Liabilities Measured at Fair Value on a $ — $ 327 $ 6,050 $ 6,377 December 31, 2018 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 972 $ 391,429 $ — $ 392,401 Debt Securities Issued by States and Political Subdivisions — 563,996 — 563,996 Debt Securities Issued by U.S. Government-Sponsored Enterprises — 56 — 56 Debt Securities Issued by Corporations — 223,140 — 223,140 Mortgage-Backed Securities: Residential - Government Agencies — 190,442 — 190,442 Residential - U.S. Government-Sponsored Enterprises — 578,527 — 578,527 Commercial - Government Agencies — 59,380 — 59,380 Total Mortgage-Backed Securities — 828,349 — 828,349 Total Investment Securities Available-for-Sale 972 2,006,970 — 2,007,942 Loans Held for Sale — 10,987 — 10,987 Mortgage Servicing Rights — — 1,290 1,290 Other Assets 31,871 — — 31,871 Derivatives 1 — 812 13,792 14,604 Total Assets Measured at Fair Value on a $ 32,843 $ 2,018,769 $ 15,082 $ 2,066,694 Liabilities: Derivatives 1 $ — $ 371 $ 9,376 $ 9,747 Total Liabilities Measured at Fair Value on a $ — $ 371 $ 9,376 $ 9,747 1 The fair value of each class of derivatives is shown in Note 17 Derivative Financial Instruments . For the years ended December 31, 2019 , and December 31, 2018 , the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (dollars in thousands) Mortgage 1 Net Derivative Assets and Liabilities 2 Year Ended December 31, 2019 Balance as of January 1, 2019 $ 1,290 $ 4,416 Realized and Unrealized Net Gains (Losses): Included in Net Income (164 ) 12,138 Transfers to Loans Held for Sale — (11,776 ) Variation Margin Payments — 17,795 Balance as of December 31, 2019 $ 1,126 $ 22,573 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 22,573 Year Ended December 31, 2018 Balance as of January 1, 2018 $ 1,454 $ 894 Realized and Unrealized Net Gains (Losses): Included in Net Income (164 ) 3,534 Transfers to Loans Held for Sale — (3,451 ) Variation Margin Payments $ — $ 3,439 Balance as of December 31, 2018 $ 1,290 $ 4,416 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 4,416 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 December 31, 2019 , and December 31, 2018 , the significant unobservable inputs used in the fair value measurements were as follows: Significant Unobservable Inputs (weighted-average) Fair Value December 31, December 31, (dollars in thousands) Valuation Technique Description 2019 2018 2019 2018 Mortgage Servicing Rights Discounted Cash Flow Constant Prepayment Rate 1 10.76 % 7.01 % $ 26,840 $ 30,508 Discount Rate 2 7.33 % 9.59 % Net Derivative Assets and Liabilities: Interest Rate Lock Commitments Pricing Model Closing Ratio 92.24 % 89.00 % $ 1,280 $ 871 Interest Rate Swap Agreements Discounted Cash Flow Credit Factor 0.20 % 0.06 % $ 21,293 $ 3,545 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. 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 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 our secondary marketing system using historical data and the ratio is periodically reviewed by the Company for reasonableness. 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. For the year ended December 31, 2019 , the Company recorded a $0.2 million impairment charge to fully write-down the net book value of aircraft parts that were previously on lease agreements. An impairment charge (included in other noninterest expense in the Company's consolidated statements of income) was recorded in the third quarter of 2019 to reduce the carrying value to estimated fair value less cost to sell based on recent appraisals, market conditions, and management judgment. Due to the use of significant unobservable inputs combined with significant management judgment regarding the fair value of the equipment held for sale, the carrying value was deemed a Level 3 measurement. For the year ended December 31, 2018 , 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 December 31, 2019 , and December 31, 2018 . (dollars in thousands) Aggregate Aggregate Aggregate Fair Value December 31, 2019 Loans Held for Sale $ 39,062 $ 38,293 $ 769 December 31, 2018 Loans Held for Sale $ 10,987 $ 10,656 $ 331 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 years ended December 31, 2019 , and December 31, 2018 , 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 December 31, 2019 , and December 31, 2018 . 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 (dollars in thousands) Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Significant December 31, 2019 Financial Instruments – Assets Investment Securities Held-to-Maturity $ 3,042,294 $ 3,062,882 $ 275,663 $ 2,787,219 $ — Loans 10,664,885 10,873,208 — — 10,873,208 Financial Instruments – Liabilities Time Deposits 1,802,431 1,800,773 — 1,800,773 — Securities Sold Under Agreements to Repurchase 604,306 627,780 — 627,780 — Other Debt 1 75,000 75,581 — 75,581 — December 31, 2018 Financial Instruments – Assets Investment Securities Held-to-Maturity $ 3,482,092 $ 3,413,994 $ 352,216 $ 3,061,778 $ — Loans 10,084,527 10,008,417 — — 10,008,417 Financial Instruments – Liabilities Time Deposits 1,745,522 1,734,447 — 1,734,447 — Securities Sold Under Agreements to Repurchase 504,296 504,288 — 504,288 — Other Debt 1 125,000 124,559 — 124,559 — 1 |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [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, which comprise the majority of the Company’s revenue. 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 the 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 years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 . Year Ended December 31, (dollars in thousands) 2019 2018 2017 Noninterest Income In-scope of Topic 606: Trust and Asset Management $ 44,233 $ 43,877 $ 45,430 Service Charges on Deposit Accounts 13,042 13,165 15,191 Fees, Exchange, and Other Service Charges 46,381 46,350 44,560 Annuity and Insurance 6,813 5,615 6,444 Other 9,633 9,652 8,966 Noninterest Income (in-scope of Topic 606) 120,102 118,659 120,591 Noninterest Income (out-of-scope of Topic 606) 63,236 50,264 64,826 Total Noninterest Income $ 183,338 $ 168,923 $ 185,417 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 December 31, 2019 and December 31, 2018 , 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. |
Bank of Hawaii Corporation Fina
Bank of Hawaii Corporation Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Bank of Hawaii Corporation Financial Statements | Bank of Hawaii Corporation Financial Statements Condensed financial statements of the Parent were as follows: Condensed Statements of Comprehensive Income Year Ended December 31, (dollars in thousands) 2019 2018 2017 Income Dividends from Bank of Hawaii $ 220,000 $ 185,000 $ 130,000 Investment Securities Gains (Losses), Net (850 ) (819 ) 12,027 Other Income 261 198 204 Total Income 219,411 184,379 142,231 Noninterest Expense Intercompany Salaries and Services 768 734 720 Other Expenses 1,682 1,701 1,401 Total Noninterest Expense 2,450 2,435 2,121 Income Before Income Tax Benefit and Equity in Undistributed Income of Subsidiaries 216,961 181,944 140,110 Income Tax Benefit (Expense) 1,818 2,229 (3,557 ) Equity in Undistributed Income of Subsidiaries 7,134 35,429 48,119 Net Income $ 225,913 $ 219,602 $ 184,672 Comprehensive Income $ 245,844 $ 210,751 $ 183,863 Condensed Statements of Condition (dollars in thousands) December 31, 2019 December 31, 2018 Assets Cash with Bank of Hawaii $ 37,056 $ 52,731 Investment Securities Held-to-Maturity 4,974 4,999 Goodwill 14,129 14,129 Income Taxes Receivable and Deferred Tax Assets 1,979 1,520 Other Assets 10,422 8,468 Equity in Net Assets of Subsidiaries 1,229,775 1,195,132 Total Assets $ 1,298,335 $ 1,276,979 Liabilities Income Taxes Payable $ 58 $ 60 Other Liabilities 11,445 8,719 Total Liabilities 11,503 8,779 Shareholders' Equity 1,286,832 1,268,200 Total Liabilities and Shareholders' Equity $ 1,298,335 $ 1,276,979 Condensed Statements of Cash Flows Year Ended December 31, (dollars in thousands) 2019 2018 2017 Operating Activities Net Income $ 225,913 $ 219,602 $ 184,672 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Share-Based Compensation 760 630 573 Net (Gains) Losses on Sales of Investment Securities 850 819 (12,027 ) Equity in Undistributed Income of Subsidiaries (7,134 ) (35,429 ) (48,119 ) Net Change in Other Assets and Other Liabilities (135 ) 870 (6,477 ) Net Cash Provided by Operating Activities 220,254 186,492 118,622 Investing Activities Capital Distribution from BOHC Investment Fund LLC — — 613 Capital Contributions to the Bank — — (12,467 ) Proceeds from (Expenses related to) Sales of Investment Securities 4,259 (819 ) 12,027 Purchase of Investment Securities Held-to-Maturity (4,933 ) — — Net Cash Provided by (Used in) Investing Activities (674 ) (819 ) 173 Financing Activities Proceeds from Issuance of Common Stock 7,872 7,873 13,101 Repurchase of Common Stock (137,649 ) (91,988 ) (47,076 ) Cash Dividends Paid (105,478 ) (98,496 ) (87,066 ) Net Cash Used in Financing Activities (235,255 ) (182,611 ) (121,041 ) Net Change in Cash and Cash Equivalents (15,675 ) 3,062 (2,246 ) Cash and Cash Equivalents at Beginning of Period 52,731 49,669 51,915 Cash and Cash Equivalents at End of Period $ 37,056 $ 52,731 $ 49,669 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases” (Topic 842) and all subsequent ASUs that modified Topic 842. For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches, ATM locations, and office space with terms extending through 2052. Portions of certain properties are subleased for terms extending through 2033. Substantially all of the Company’s leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated statements of condition. With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated statements of condition as right-of-use (“ROU”) assets and corresponding lease liabilities. The Company has one existing finance lease (previously referred to as a capital lease) for a portion of the Company’s principal offices with a lease term through 2052. As this lease was previously required to be recorded on the Company’s consolidated statements of condition, Topic 842 did not materially impact the accounting for this lease. The following table represents the consolidated statements of condition classification of the Company’s ROU assets and lease liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated statements of condition. (dollars in thousands) December 31, 2019 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Operating Lease Right-of-Use Assets $ 100,838 Finance lease right-of-use assets Premises and Equipment, Net 2,376 Total Lease Right-of-Use Assets $ 103,214 Lease Liabilities Operating lease liabilities Operating Lease Liabilities $ 108,210 Finance lease liabilities Other Debt 10,565 Total Lease Liabilities $ 118,775 The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019, was used. For the Company’s only finance lease, the Company utilized its incremental borrowing rate at lease inception. December 31, 2019 Weighted-average remaining lease term Operating leases 16.8 years Finance leases 33.0 years Weighted-average discount rate Operating leases 3.67 % Finance leases 7.04 % The following table represents lease costs and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Variable lease cost also includes payments for ATM location leases in which payments are based on a percentage of ATM transactions (i.e., ATM surcharge fees), rather than a fixed amount. (dollars in thousands) 2019 Lease Costs Operating lease cost $ 12,616 Variable lease cost 3,504 Short-term lease cost 591 Finance lease cost Interest on lease liabilities 1 747 Amortization of right-of-use assets 72 Sublease income (8,281 ) Net lease cost $ 9,249 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12,779 Operating cash flows from finance leases 747 Financing cash flows from finance leases 78 Right-of-use assets obtained in exchange for new operating lease liabilities 4,101 Right-of-use assets obtained in exchange for new finance lease liabilities — 1 Included in other debt interest expense in the Company’s consolidated statements of income. All other lease costs in this table are included in net occupancy expense. Rental expense for operating leases for the years ended December 31, 2018 , and December 31, 2017 , were $19.3 million and $18.3 million , respectively. Sublease income for the years ended December 31, 2018 , and December 31, 2017 , were $7.6 million and $7.1 million , respectively. Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more as of December 31, 2019 , were as follows: (dollars in thousands) Finance Leases Operating Leases 2020 $ 825 $ 12,003 2021 825 11,329 2022 825 10,515 2023 825 9,687 2024 825 8,235 Thereafter 23,105 100,180 Total Future Minimum Lease Payments 27,230 151,949 Amounts Representing Interest (16,665 ) (43,739 ) Present Value of Net Future Minimum Lease Payments $ 10,565 $ 108,210 The Company, as lessor, leases and subleases certain properties to third party lessees. Rental income for these operating leases were $10.7 million , $8.7 million , and $8.2 million for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , respectively. Future minimum rental income under operating leases, including subleases, as of December 31, 2019 , were as follows: (dollars in thousands) Minimum Rental Income 2020 $ 6,614 2021 5,129 2022 3,817 2023 2,554 2024 1,152 Thereafter 4,530 Total $ 23,796 |
Leases | Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases” (Topic 842) and all subsequent ASUs that modified Topic 842. For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches, ATM locations, and office space with terms extending through 2052. Portions of certain properties are subleased for terms extending through 2033. Substantially all of the Company’s leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated statements of condition. With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated statements of condition as right-of-use (“ROU”) assets and corresponding lease liabilities. The Company has one existing finance lease (previously referred to as a capital lease) for a portion of the Company’s principal offices with a lease term through 2052. As this lease was previously required to be recorded on the Company’s consolidated statements of condition, Topic 842 did not materially impact the accounting for this lease. The following table represents the consolidated statements of condition classification of the Company’s ROU assets and lease liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated statements of condition. (dollars in thousands) December 31, 2019 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Operating Lease Right-of-Use Assets $ 100,838 Finance lease right-of-use assets Premises and Equipment, Net 2,376 Total Lease Right-of-Use Assets $ 103,214 Lease Liabilities Operating lease liabilities Operating Lease Liabilities $ 108,210 Finance lease liabilities Other Debt 10,565 Total Lease Liabilities $ 118,775 The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019, was used. For the Company’s only finance lease, the Company utilized its incremental borrowing rate at lease inception. December 31, 2019 Weighted-average remaining lease term Operating leases 16.8 years Finance leases 33.0 years Weighted-average discount rate Operating leases 3.67 % Finance leases 7.04 % The following table represents lease costs and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Variable lease cost also includes payments for ATM location leases in which payments are based on a percentage of ATM transactions (i.e., ATM surcharge fees), rather than a fixed amount. (dollars in thousands) 2019 Lease Costs Operating lease cost $ 12,616 Variable lease cost 3,504 Short-term lease cost 591 Finance lease cost Interest on lease liabilities 1 747 Amortization of right-of-use assets 72 Sublease income (8,281 ) Net lease cost $ 9,249 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12,779 Operating cash flows from finance leases 747 Financing cash flows from finance leases 78 Right-of-use assets obtained in exchange for new operating lease liabilities 4,101 Right-of-use assets obtained in exchange for new finance lease liabilities — 1 Included in other debt interest expense in the Company’s consolidated statements of income. All other lease costs in this table are included in net occupancy expense. Rental expense for operating leases for the years ended December 31, 2018 , and December 31, 2017 , were $19.3 million and $18.3 million , respectively. Sublease income for the years ended December 31, 2018 , and December 31, 2017 , were $7.6 million and $7.1 million , respectively. Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more as of December 31, 2019 , were as follows: (dollars in thousands) Finance Leases Operating Leases 2020 $ 825 $ 12,003 2021 825 11,329 2022 825 10,515 2023 825 9,687 2024 825 8,235 Thereafter 23,105 100,180 Total Future Minimum Lease Payments 27,230 151,949 Amounts Representing Interest (16,665 ) (43,739 ) Present Value of Net Future Minimum Lease Payments $ 10,565 $ 108,210 The Company, as lessor, leases and subleases certain properties to third party lessees. Rental income for these operating leases were $10.7 million , $8.7 million , and $8.2 million for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , respectively. Future minimum rental income under operating leases, including subleases, as of December 31, 2019 , were as follows: (dollars in thousands) Minimum Rental Income 2020 $ 6,614 2021 5,129 2022 3,817 2023 2,554 2024 1,152 Thereafter 4,530 Total $ 23,796 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accounting and reporting principles of the Company conform to U.S. generally accepted accounting principles (“GAAP”) and prevailing practices within the financial services industry. |
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. |
Consolidation | Consolidation 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”). All significant intercompany accounts and transactions have been eliminated in consolidation. |
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 for federal and 5 years for state. 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 Accounting Standards Update (“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 $21.3 million and $15.2 million as of December 31, 2019 , and December 31, 2018 , respectively. These unfunded commitments are unconditional and legally binding and are recorded in other liabilities in the consolidated statements of condition. See Note 18 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 6 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 $84.6 million and $85.9 million as of December 31, 2019 , and December 31, 2018 , respectively, and is included in other assets in the consolidated statements of condition. |
Investment Securities | Investment Securities Investment securities are accounted for according to their purpose and holding period. Trading securities are those that are bought and held principally for the purpose of selling them in the near term. The Company held no trading securities as of December 31, 2019 or December 31, 2018 . Available-for-sale investment securities, comprised of debt and mortgage-backed securities, are those that may be sold before maturity due to changes in the Company’s interest rate risk profile or funding needs, and are reported at fair value with unrealized gains and losses, net of taxes, reported as a component of other comprehensive income. Held-to-maturity investment securities, comprised of debt and mortgage-backed securities, are those that management has the positive intent and ability to hold to maturity and are reported at amortized cost. Realized gains and losses are recorded in noninterest income and are determined on a trade date basis using the specific identification method. Interest and dividends on investment securities are recognized in interest income on an accrual basis. Premiums and discounts are amortized or accreted into interest income using the interest method over the expected lives of the individual securities. Transfers of debt securities from the available-for-sale category to the held-to-maturity category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income and in the carrying value of the held-to-maturity investment security. Premiums or discounts on investment securities are amortized or accreted as an adjustment of yield using the interest method over the estimated life of the security. Unrealized holding gains or losses that remain in accumulated other comprehensive income are also amortized or accreted over the estimated life of the security as an adjustment of yield, offsetting the related amortization of the premium or accretion of the discount. |
Other-Than-Temporary Impairments of Investment Securities | Other-Than-Temporary-Impairments of Investment Securities The Company conducts an other-than-temporary-impairment (“OTTI”) analysis of investment securities on a quarterly basis or more often if a potential loss-triggering event occurs. A write-down of a debt security is recorded when fair value is below amortized cost in circumstances where: (1) the Company has the intent to sell a security; (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. If the Company intends to sell a security or if it is more likely than not that the Company will be required to sell the security before recovery, an OTTI write-down is recognized in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. If the Company does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the OTTI write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in other comprehensive income. To determine the amount related to credit loss on a debt security, the Company applies a methodology similar to that used for evaluating the impairment of loans. As of December 31, 2019 , management determined that the Company did not own any investment securities that were other-than-temporarily-impaired. |
Loans Held for Sale | Loans Held for Sale Residential mortgage loans with the intent to be sold in the secondary market are accounted for on an aggregate basis under the fair value option. Fair value is primarily determined based on quoted prices for similar loans in active markets. Non-refundable fees and direct loan origination costs related to residential mortgage loans held for sale are recognized as part of the cost basis of the loan at the time of sale. Gains and losses on sales of residential mortgage loans (sales proceeds minus carrying value) are recorded in the mortgage banking component of noninterest income. Commercial loans that management has an active plan to sell are valued on an individual basis at the lower-of-cost-or fair value. Fair value is primarily determined based on quoted prices for similar loans in active markets or agreed upon sales prices. Any reduction in the loan’s value, prior to being transferred to the held-for-sale category, is reflected as a charge-off of the recorded investment in the loan resulting in a new cost basis, with a corresponding reduction in the allowance for loan and lease losses. Further decreases in the fair value of the loan are recognized in noninterest expense. |
Loans and Leases | Loans and Leases Loans are reported at the principal amount outstanding, net of unearned income including unamortized deferred loan fees and costs, and cumulative net charge-offs. Interest income is recognized on an accrual basis. Loan origination fees, certain direct costs, and unearned discounts and premiums, if any, are deferred and are generally amortized into interest income as yield adjustments using the interest method over the contractual life of the loan. Loan commitment fees are generally recognized into noninterest income. Other credit-related fees are recognized as fee income, a component of noninterest income, when earned. The Company’s lease financing arrangements, excluding leveraged leases, primarily consist of equipment and automobile leases. These lease arrangments are classified as sales-type leases despite not receiving a selling profit at lease inception. Sales-type leases are carried at the aggregate of lease payments receivable plus the estimated residual value of leased property, less unearned income. Leveraged leases are carried net of non-recourse debt. Unearned income on sales-type and leveraged leases is amortized over the lease term by methods that approximate the interest method. Residual values on leased assets are periodically reviewed for impairment. Portfolio segments are defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for loan and lease losses (the “Allowance”). Management has determined that the Company has two portfolio segments of loans and leases (commercial and consumer) in determining the Allowance. Both quantitative and qualitative factors are used by management at the portfolio segment level in determining the adequacy of the Allowance for the Company. Classes of loans and leases are a disaggregation of a Company’s portfolio segments. Classes are defined as a group of loans and leases which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. Management has determined that the Company has eight classes of loans and leases (commercial and industrial, commercial mortgage, construction, lease financing, residential mortgage, home equity, automobile, and other). The “other” class of loans and leases is comprised of revolving credit, installment, and consumer lease financing arrangements. |
Non-Performing Loans and Leases | Non-Performing Loans and Leases Generally, all classes of commercial loans and leases are placed on non-accrual status upon becoming contractually past due 90 days as to principal or interest (unless loans and leases are adequately secured by collateral, are in the process of collection, and are reasonably expected to result in repayment), when terms are renegotiated below market levels, or where substantial doubt about full repayment of principal or interest is evident. For residential mortgage and home equity loan classes, loans past due 120 days as to principal or interest may be placed on non-accrual status, and a partial charge-off may be recorded, depending on the collateral value and/or the collectability of the loan. For automobile and other consumer loan classes, the entire outstanding balance of the loan is charged off when the loan becomes 120 days past due as to principal or interest. When a loan or lease is placed on non-accrual status, the accrued and unpaid interest receivable is reversed and the loan or lease is accounted for on the cash or cost recovery method until qualifying for return to accrual status. All payments received on non-accrual loans and leases are applied against the principal balance of the loan or lease. A loan or lease may be returned to accrual status when all delinquent interest and principal become current in accordance with the terms of the loan or lease agreement and when doubt about repayment is resolved. Generally, for all classes of loans and leases, a charge-off is recorded when it is probable that a loss has been incurred and when it is possible to determine a reasonable estimate of the loss. For all classes of commercial loans and leases, a charge-off is determined on a judgmental basis after due consideration of the debtor’s prospects for repayment and the fair value of collateral. For the pooled segment of the Company’s commercial and industrial loan class, which consists of small business loans, the entire outstanding balance of the loan remains on accrual status until it is charged off during the month that the loan becomes 120 days past due as to principal or interest. As previously mentioned, for residential mortgage and home equity loan classes, a partial charge-off may be recorded at 120 days past due as to principal or interest depending on the collateral value and/or the collectability of the loan. In the event that a loan or line in the home equity loan class is behind another financial institution’s first mortgage, the entire outstanding balance of the loan is charged off when the loan becomes 120 days past due as to principal or interest, unless the combined loan-to-value ratio is 60% or less. As noted above, loans in the automobile and other consumer loan classes are charged off in its entirety upon the loan becoming 120 days past due as to principal or interest. |
Impaired Loans | Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect all amounts due from the borrower in accordance with the contractual terms of the loan, including scheduled interest payments. Impaired loans include all classes of commercial non-accruing loans (except lease financing and small business loans), and all loans modified in a troubled debt restructuring. Impaired loans exclude lease financing and smaller balance homogeneous loans (consumer and small business non-accruing loans) that are collectively evaluated for impairment. For all classes of commercial loans, a quarterly evaluation of individual commercial borrowers is performed to identify impaired loans. The identification of specific borrowers for review is based on a review of non-accrual loans as well as those loans specifically identified by management as exhibiting above average levels of risk. When a loan has been identified as being impaired, the amount of impairment 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. If the measurement of the impaired loan is less than the recorded investment in the loan (including accrued interest, net of deferred loan fees or costs, and unamortized premiums or discounts), impairment is recognized by establishing or adjusting an existing allocation of the Allowance, or by recording a partial charge-off of the loan to its fair value. Interest payments made on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest income may be accrued or recognized on a cash basis. |
Loans Modified in a Troubled Debt Restructuring | Loans Modified in a Troubled Debt Restructuring Loans are considered to have been modified in a troubled debt restructuring when, due to a borrower’s financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a non-accrual loan that has been modified in a troubled debt restructuring remains on non-accrual status for a period of at least 6 months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. |
Reserve for Credit Losses | Reserve for Credit Losses The Company’s reserve for credit losses is comprised of two components, the Allowance and the reserve for unfunded commitments (the “Unfunded Reserve”). |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses The Company maintains an Allowance adequate to cover management’s estimate of probable credit losses as of the balance sheet date. Loans and leases that are charged off reduce the Allowance while recoveries of loans and leases previously charged off increase the Allowance. Other changes to the level of the Allowance are recognized through charges or credits to the provision for credit losses (the “Provision”). The Allowance considers both unimpaired and impaired loans and is developed and documented at the portfolio segment level (commercial and consumer). The level of the Allowance related to the Company’s commercial portfolio segment is generally based on the credit risk ratings and historical loss experience of individual borrowers. This is supplemented as necessary by credit judgment to address observed changes in trends and conditions, and other relevant environmental and economic factors that may affect the collectability of loans and leases. Excluding those loans and leases evaluated individually for impairment, the Company’s remaining commercial loans and leases are pooled and collectively evaluated for impairment based on business unit and internal risk rating segmentation. The level of the Allowance related to the Company’s consumer portfolio segment is generally based on analyses of homogeneous pools of loans and leases. Loans and leases are pooled based on similar loan and lease risk characteristics for collective evaluation of impairment. Loss estimates are calculated based on historical rolling average loss rates and average delinquency flows to loss. Consumer loans that have been individually evaluated for impairment or modified in a troubled debt restructuring are excluded from the homogeneous pools. Impairment related to such loans is generally determined based on the present value of expected future cash flows discounted at the loan’s original effective interest rate. The Allowance also includes an estimate for inherent losses not reflected in the historical analyses. Relevant factors include, but are not limited to, concentrations of credit risk (geographic, large borrower, and industry), economic trends and conditions, changes in underwriting standards, experience and depth of lending staff, trends in delinquencies, and the level of net charge-offs. In addition, the Company uses a variety of other tools to estimate probable credit losses including, but not limited to, a rolling quarterly forecast of asset quality metrics; stress testing; and performance indicators based on the Company’s own experience, peers, or other industry sources. |
Reserve for Unfunded Commitments | Reserve for Unfunded Commitments The Unfunded Reserve is a component of other liabilities and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include banker’s acceptances, and standby and commercial letters of credit. The process used to determine the Unfunded Reserve is consistent with the process for determining the Allowance, as adjusted for estimated funding probabilities or loan and lease equivalency factors. The level of the Unfunded Reserve is adjusted by recording an expense or recovery in other noninterest expense. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, interest-bearing deposits in other banks, and funds sold. All amounts are readily convertible to cash and have maturities of less than 90 days. |
Premises and Equipment | Premises and Equipment Premises and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. Capital leases are included in premises and equipment at the capitalized amount less accumulated amortization. Premises and equipment are depreciated using the straight-line method over the estimated useful lives of the respective assets. Estimated useful lives generally range up to 30 years for buildings and up to 10 years for equipment. Capitalized leased assets and leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the lease term. Repairs and maintenance are charged to expense as incurred, while improvements which extend the estimated useful life of the asset are capitalized and depreciated over the estimated remaining life of the asset. |
Foreclosed Real Estate | Foreclosed Real Estate Foreclosed real estate consists of properties acquired through foreclosure proceedings or acceptance of a deed-in-lieu of foreclosure. These properties are recorded at fair value less estimated costs to sell the property. If the recorded investment in the loan exceeds the property’s fair value at the time of acquisition, a charge-off is recorded against the Allowance. If the fair value of the property at the time of acquisition exceeds the carrying amount of the loan, the excess is recorded either as a recovery to the Allowance if a charge-off had previously been recorded, or as a gain on initial transfer in other noninterest income. Subsequent decreases in the property’s fair value and operating expenses of the property are recognized through charges to other noninterest expense. The fair value of the property acquired is based on third party appraisals, broker price opinions, recent sales activity, or a combination thereof, subject to management judgment. |
Mortgage Servicing Rights | Mortgage Servicing Rights Mortgage servicing rights are recognized as assets when mortgage loans are sold and the rights to service those loans are retained. Mortgage servicing rights are initially recorded at fair value by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company’s mortgage servicing rights accounted for under the fair value method are carried on the statements of condition at fair value with changes in fair value recorded in mortgage banking income in the period in which the change occurs. Changes in the fair value of mortgage servicing rights are primarily due to changes in valuation inputs, assumptions, and the collection and realization of expected cash flows. The Company’s mortgage servicing rights accounted for under the amortization method are initially recorded at fair value. However, these mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income. An impairment analysis is prepared on a quarterly basis by estimating the fair value of the mortgage servicing rights and comparing that value to the carrying amount. A valuation allowance is established when the carrying amount of these mortgage servicing rights exceeds fair value. |
Goodwill | Goodwill Goodwill is initially recorded as the excess of the purchase price over the fair value of the net assets acquired in a business combination and is subsequently evaluated at least annually for impairment. Goodwill impairment testing is performed at the reporting unit level, equivalent to a business segment or one level below. The Company has goodwill assigned to the following reporting units: Investment Services and Retail Banking. The Company performs its annual evaluation of goodwill impairment in the fourth quarter of each year and on an interim basis if events or changes in circumstances indicate that there may be impairment. The Company performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The qualitative factors considered include, but are not limited to, macroeconomic and State of Hawaii economic conditions, industry and market conditions and trends, the Company’s financial performance, market capitalization, stock price, and any Company-specific events relevant to the assessment. If the assessment of qualitative factors indicates that it is not more likely than not that an impairment exists, no further testing is performed; otherwise an impairment test is performed. Prior to 2017, the goodwill impairment test was a two-step test. The first step compared the estimated fair value of identified reporting units with their carrying amount, including goodwill. If the estimated fair value of a reporting unit was less than the carrying value, the second step was required to determine the implied fair value of the reporting unit’s goodwill and the amount of goodwill impairment, if any. In 2017, the Company elected to early adopt ASU No. 2017-04, “Simplifying the Test for Goodwill Impairment.” The guidance removed Step 2 of the goodwill impairment test. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance remained largely unchanged. Subsequent reversals of goodwill impairment are prohibited. For the year ended December 31, 2019 , the Company’s goodwill impairment evaluation, based on its qualitative assessment, indicated there was no impairment. |
Non-Marketable Equity Securities | Non-Marketable Equity Securities The Company is required to own Federal Home Loan Bank (“FHLB”) of Des Moines and Federal Reserve Bank (“FRB”) stock as a condition of membership. These non-marketable equity securities are accounted for at cost which equals par or redemption value. These securities do not have a readily determinable fair value as their ownership is restricted and there is no market for these securities. 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, which are periodically evaluated 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 by recognizing temporary declines in value. |
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase 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, securities sold under agreements to repurchase are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase 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 securities sold under agreements to repurchase remain in the respective asset accounts. See Note 19 Balance Sheet Offsetting for more information. |
Pension and Postretirement Benefit Plans | Pension and Postretirement Benefit Plans The Company incurs certain employment-related expenses associated with its two frozen pension plans and a postretirement benefit plan (the “Plans”). In order to measure the expense associated with the Plans, various assumptions are made including the discount rate, expected return on plan assets, anticipated mortality rates, and expected future healthcare costs. The assumptions are based on historical experience as well as current facts and circumstances. The Company uses a December 31 measurement date for its Plans. As of the measurement date, plan assets are determined based on fair value, generally representing observable market prices. The projected benefit obligation is primarily determined based on the present value of projected benefit distributions at an assumed discount rate. Net periodic pension benefit costs include interest costs based on an assumed discount rate, the expected return on plan assets based on actuarially derived market-related values, and the amortization of net actuarial gains or losses. Net periodic postretirement benefit costs include service costs, interest costs based on an assumed discount rate, and the amortization of prior service credits and net actuarial gains or losses. Differences between expected and actual results in each year are included in the net actuarial gain or loss amount, which is recognized in other comprehensive income. The net actuarial gain or loss in excess of a 10% corridor is amortized in net periodic benefit cost over the average remaining expected lives of the pension plan participants and over the average remaining future service years of the postretirement benefit plan participants. The prior service credit is amortized over the average remaining service period to full eligibility for participating employees expected to receive benefits. The Company recognizes in its consolidated statements of condition an asset for a plan’s overfunded status or a liability for a plan’s underfunded status. The Company also measures the Plans’ assets and obligations that determine its funded status as of the end of the year and recognizes those changes in other comprehensive income, net of tax. |
Income Taxes | Income Taxes The Parent files a consolidated federal income tax return with the Bank and its subsidiaries. Calculation of the Company’s provision for income taxes requires the interpretation of income tax laws and regulations and the use of estimates and judgments in its determination. The Company is subject to examination by governmental authorities that may give rise to income tax issues due to differing interpretations. Changes to the liability for income taxes also occur due to changes in income tax rates, implementation of new business strategies, resolution of issues with taxing authorities, and newly enacted statutory, judicial, and regulatory guidance. Deferred income taxes are provided to reflect the tax effect of temporary differences between financial statement carrying amounts and the corresponding tax basis of assets and liabilities. Deferred income taxes are calculated by applying enacted statutory tax rates and tax laws to future years in which temporary differences are expected to reverse. The impact on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that the tax rate change is enacted. A deferred tax valuation allowance is established if it is more likely than not that a deferred tax asset will not be realized. The Company’s tax sharing policy provides for the settlement of income taxes between each relevant subsidiary as if the subsidiary had filed a separate return. Payments are made to the Parent by subsidiaries with tax liabilities and subsidiaries that generate tax benefits receive payments for those benefits as used. The Company maintains reserves for certain tax positions that arise in the normal course of business. As of December 31, 2019 , these positions were evaluated based on an assessment of probabilities as to the likelihood of whether a liability had been incurred. Such assessments are reviewed as events occur and adjustments to the reserves are made as appropriate. In evaluating a tax position for recognition, the Company evaluates whether it is more likely than not that a tax position will be sustained upon examination, including resolution of related appeals or litigation processes, based on the technical merits of the position. If the tax position meets the more likely than not recognition threshold, the tax position is measured and recognized in the Company’s Consolidated Financial Statements as the largest amount of tax benefit that, in management’s judgment, is greater than 50% likely of being realized upon ultimate settlement. |
Treasury Stock | Treasury Stock Shares of the Parent’s common stock that are repurchased are recorded in treasury stock at cost. On the date of subsequent re-issuance, the treasury stock account is reduced by the cost of such stock on a first-in, first-out basis. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period, assuming conversion of all potentially dilutive common stock equivalents. |
Derivative Financial Instruments | Derivative Financial Instruments In the ordinary course of business, the Company enters into derivative financial instruments as an end-user in connection with its risk management activities and to accommodate the needs of its customers. The Company has elected not to qualify for hedge accounting methods addressed under current provisions of GAAP. Derivative financial instruments are stated at fair value on the consolidated statements of condition with changes in fair value reported in current period earnings. |
Share-Based Compensation | Share-Based Compensation The Company may grant share-based compensation to employees and non-employee directors in the form of restricted stock, restricted stock units and stock options. The fair value of restricted stock is determined based on the closing price of the Parent’s common stock on the date of grant. The Company recognizes compensation expense related to restricted stock on a straight-line basis over the vesting period for service-based awards, plus additional recognition of costs associated with accelerated vesting based on the projected attainment of Company performance measures. Restricted stock units (“RSUs”) are payable solely in cash which are accounted for as other liabilities in the consolidated statements of condition. The fair value of RSUs is initially valued based on the closing price of the Parent’s common stock on the date of grant and is amortized in the statement of income over the vesting period. The RSUs are subsequently remeasured in the same manner described above at the end of each reporting period until settlement. The fair value of stock options is estimated at the date of grant using the Black-Scholes option pricing model and related assumptions. The Company uses historical data to predict option exercise and employee termination behavior. Expected volatilities are based on the historical volatility of the Parent’s common stock. The expected term of options granted is derived from actual historical exercise activity and represents the period of time that options granted are expected to be outstanding. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of grant based on the expected life of the option. The dividend yield is equal to the dividend yield of the Parent’s common stock at the time of grant. The amortization of the expense related to stock options reflects estimated forfeitures, adjusted for actual forfeiture experience. Amortization expense related to stock options is recorded in the statements of income as a component of salaries and benefits for employees and as a component of other noninterest expense for non-employee directors, with a corresponding increase to capital surplus in shareholders’ equity. As the expense related to stock options is recognized, a deferred tax asset is established that represents an estimate of future income tax deductions from the release of restrictions or the exercise of stock options. |
Advertising Costs | Advertising Costs |
International Operations | International Operations The Bank has operations that are conducted in certain Pacific Islands that are denominated in U.S. dollars. These operations are classified as domestic. |
Fair Value Measurements | Fair Value Measurements Fair value measurements apply whenever GAAP requires or permits assets or liabilities to be measured at fair value either on a recurring or nonrecurring basis. 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. Fair value is based on the assumptions that management believes market participants would use when pricing an asset or liability. Fair value measurement and disclosure guidance established a three-level fair value hierarchy that prioritizes the use of inputs used in valuation methodologies. 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. The three-level fair value hierarchy is as follows: 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 shall be 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 requires significant management judgment or estimation, some of which may be internally developed. |
Accounting Standards Adopted in the Current Year | Accounting Standards Adopted in 2019 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. 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. As the Company elected the transition option provided in ASU No. 2018-11 (see below), the modified retrospective approach was applied on January 1, 2019 (as opposed to January 1, 2017). The Company also elected certain relief options offered in ASU 2016-02 including the package of practical expedients, the option not to separate lease and non-lease components and instead to account for them as a single lease component, and the option not to recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e., leases with terms of twelve months or less). The Company did not elect the hindsight practical expedient, which allows entities to use hindsight when determining lease term and impairment of right-of-use assets. The Company has several lease agreements, such as branch locations, which are considered operating leases, and therefore, were not previously recognized on the Company’s consolidated statements of condition. The new guidance requires these lease agreements to be recognized on the consolidated statements of condition as a right-of-use asset and a corresponding lease liability. The new guidance did not have a material impact on the consolidated statements of income or the consolidated statements of cash flows. See Note 23 Leases for more information. In August 2017, the FASB issued ASU No. 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12’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. The Company currently does not designate any derivative financial instruments as formal hedging relationships, and therefore, does not currently utilize hedge accounting. As such, ASU No. 2017-12 did not impact the Company’s Consolidated Financial Statements. In July 2018, the FASB issued ASU No. 2018-11, “Leases - Targeted Improvements” to provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU No. 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02 (January 1, 2019, for the Company). The Company adopted ASU 2018-11 on its required effective date of January 1, 2019, and elected both transition options mentioned above. ASU 2018-11 did not have a material impact on the Company’s Consolidated Financial Statements. In December 2018, the FASB issued ASU No. 2018-20, “Narrow-Scope Improvements for Lessors.” ASU 2018-20 (1) allows lessors to make an accounting policy election of presenting sales taxes and other similar taxes collected from lessees on a net basis, (2) requires a lessor to exclude lessor costs paid directly by a lessee to third parties on the lessor’s behalf and include lessor costs that are paid by the lessor and reimbursed by the lessee in the measurement of variable lease revenue and the associated expense, and (3) clarifies that when lessors allocate variable payments to lease and non-lease components they are required to follow the recognition guidance in the new leases standard for the lease component and other applicable guidance, such as the new revenue standard, for the non-lease component. The Company adopted ASU 2018-20 on its required effective date of January 1, 2019, and elected to present sales taxes and other similar taxes collected from lessees on a net basis as described in (1) above. ASU 2018-20 did not have a material impact on the Company’s Consolidated Financial Statements. In March 2019, the FASB issued ASU No. 2019-01, “Leases: Codification Improvements.” This ASU (1) states that for lessors that are not manufacturers or dealers, the fair value of the underlying asset is its cost, less any volume or trade discounts, as long as there is not a significant amount of time between acquisition of the asset and lease commencement; (2) clarifies that lessors in the scope of ASC 942 (such as the Company) must classify principal payments received from sales-type and direct financing leases in investing activities in the statement of cash flows; and (3) clarifies the transition guidance related to certain interim disclosures provided in the year of adoption. To coincide with the adoption of ASU No. 2016-02, the Company elected to early adopt ASU 2019-01 on January 1, 2019. The adoption of this ASU did not have a material impact on the Company’s Consolidated Financial Statements. In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instrume nts.” With respect to Topic 815, Derivatives and Hedging, ASU 2019-04 clarifies that the reclassification of a debt security from held-to-maturity (“HTM”) to available-for-sale (“AFS”) under the transition guidance in ASU 2017-12, "Targeted Improvements to Accounting for Hedging Activities" would not (1) call into question the classification of other HTM securities, (2) be required to actually designate any reclassified security in a last-of-layer hedge, or (3) be restricted from selling any reclassified security. As part of the transition of ASU 2019-04, entities may reclassify securities that would qualify for designation as the hedged item in a last-of-layer hedging relationship from HTM to AFS; however, entities that already made such a reclassification upon their adoption of ASU 2017-12 are precluded from reclassifying additional securities. The Company did not reclassify any securities from HTM to AFS upon adoption of ASU 2017-12. The Company elected to early adopt the amendments to Topic 815 in June 2019. See Note 3 Investment Securities for more information regarding the impact of the transfer of certain HTM debt securities to AFS. The amendments to Topics 326 and 825 are effective for interim and annual reporting periods beginning after December 15, 2019. |
Restrictions on Cash and Cash_2
Restrictions on Cash and Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) December 31, December 31, Interest-Bearing Deposits in Other Banks $ 4,979 $ 3,028 Funds Sold 254,574 198,860 Cash and Due From Banks 299,105 324,081 Total Cash and Cash Equivalents $ 558,658 $ 525,969 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 , December 31, 2018 , and December 31, 2017 , were as follows: (dollars in thousands) Amortized Gross Gross Fair December 31, 2019 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 222,365 $ 213 $ (1,447 ) $ 221,131 Debt Securities Issued by States and Political Subdivisions 54,480 631 (14 ) 55,097 Debt Securities Issued by U.S. Government-Sponsored Enterprises 22,128 19 — 22,147 Debt Securities Issued by Corporations 335,553 1,401 (633 ) 336,321 Mortgage-Backed Securities: Residential - Government Agencies 1,164,466 11,627 (3,267 ) 1,172,826 Residential - U.S. Government-Sponsored Enterprises 584,272 4,363 (1,874 ) 586,761 Commercial - Government Agencies 224,372 2,889 (2,541 ) 224,720 Total Mortgage-Backed Securities 1,973,110 18,879 (7,682 ) 1,984,307 Total $ 2,607,636 $ 21,143 $ (9,776 ) $ 2,619,003 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 274,375 $ 1,319 $ (31 ) $ 275,663 Debt Securities Issued by States and Political Subdivisions 54,811 1,236 — 56,047 Debt Securities Issued by Corporations 14,975 — (138 ) 14,837 Mortgage-Backed Securities: Residential - Government Agencies 1,067,416 13,247 (5,348 ) 1,075,315 Residential - U.S. Government-Sponsored Enterprises 1,546,479 13,871 (2,478 ) 1,557,872 Commercial - Government Agencies 84,238 317 (1,407 ) 83,148 Total Mortgage-Backed Securities 2,698,133 27,435 (9,233 ) 2,716,335 Total $ 3,042,294 $ 29,990 $ (9,402 ) $ 3,062,882 December 31, 2018 Available-for-Sale: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 394,485 $ 493 $ (2,577 ) $ 392,401 Debt Securities Issued by States and Political Subdivisions 559,800 5,227 (1,031 ) 563,996 Debt Securities Issued by U.S. Government-Sponsored Enterprises 56 — — 56 Debt Securities Issued by Corporations 224,997 — (1,857 ) 223,140 Mortgage-Backed Securities: Residential - Government Agencies 189,645 1,726 (929 ) 190,442 Residential - U.S. Government-Sponsored Enterprises 589,311 1,779 (12,563 ) 578,527 Commercial - Government Agencies 63,864 — (4,484 ) 59,380 Total Mortgage-Backed Securities 842,820 3,505 (17,976 ) 828,349 Total $ 2,022,158 $ 9,225 $ (23,441 ) $ 2,007,942 Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 353,122 $ 186 $ (1,093 ) $ 352,215 Debt Securities Issued by States and Political Subdivisions 234,602 6,150 — 240,752 Debt Securities Issued by Corporations 97,266 — (1,755 ) 95,511 Mortgage-Backed Securities: Residential - Government Agencies 1,861,874 3,886 (51,773 ) 1,813,987 Residential - U.S. Government-Sponsored Enterprises 758,835 1,590 (20,259 ) 740,166 Commercial - Government Agencies 176,393 147 (5,177 ) 171,363 Total Mortgage-Backed Securities 2,797,102 5,623 (77,209 ) 2,725,516 Total $ 3,482,092 $ 11,959 $ (80,057 ) $ 3,413,994 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 December 31, 2019 . 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 Fair Value Available-for-Sale: Due in One Year or Less $ 126,483 $ 126,672 Due After One Year Through Five Years 114,822 114,858 Due After Five Years Through Ten Years 171,950 173,137 Due After Ten Years 51 52 413,306 414,719 Debt Securities Issued by Government Agencies 221,220 219,977 Mortgage-Backed Securities: Residential - Government Agencies 1,164,466 1,172,826 Residential - U.S. Government-Sponsored Enterprises 584,272 586,761 Commercial - Government Agencies 224,372 224,720 Total Mortgage-Backed Securities 1,973,110 1,984,307 Total $ 2,607,636 $ 2,619,003 Held-to-Maturity: Due in One Year or Less $ 294,760 $ 296,286 Due After One Year Through Five Years 49,401 50,261 344,161 346,547 Mortgage-Backed Securities: Residential - Government Agencies 1,067,416 1,075,315 Residential - U.S. Government-Sponsored Enterprises 1,546,479 1,557,872 Commercial - Government Agencies 84,238 83,148 Total Mortgage-Backed Securities 2,698,133 2,716,335 Total $ 3,042,294 $ 3,062,882 |
Gross gains and losses from sale of investment securities | gains and losses from the sales of investment securities for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 . (dollars in thousands) 2019 2018 2017 Gross Gains on Sales of Investment Securities $ 7,810 $ — $ 12,467 Gross Losses on Sales of Investment Securities (11,796 ) (3,938 ) (2,037 ) Net Gains (Losses) on Sales of Investment Securities $ (3,986 ) $ (3,938 ) $ 10,430 |
Schedule of investment securities in an unrealized loss position | The Company’s investment securities in an unrealized loss position, segregated by continuous length of impairment, were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Gross Fair Value Gross Fair Value Gross December 31, 2019 Available-for-Sales: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 65,479 $ (188 ) $ 101,761 $ (1,259 ) $ 167,240 $ (1,447 ) Debt Securities Issued by States and Political Subdivisions 6,788 (14 ) 440 — 7,228 (14 ) Debt Securities Issued by Corporations 25,892 (326 ) 74,693 (307 ) 100,585 (633 ) Mortgage-Backed Securities: Residential - Government Agencies 119,271 (526 ) 170,805 (2,741 ) 290,076 (3,267 ) Residential - U.S. Government-Sponsored Enterprises 187,861 (816 ) 73,720 (1,058 ) 261,581 (1,874 ) Commercial - Government Agencies 59,826 (319 ) 52,965 (2,222 ) 112,791 (2,541 ) Total Mortgage-Backed Securities 366,958 (1,661 ) 297,490 (6,021 ) 664,448 (7,682 ) Total $ 465,117 $ (2,189 ) $ 474,384 $ (7,587 ) $ 939,501 $ (9,776 ) Held-to-Maturity: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ — $ 39,984 $ (31 ) $ 39,984 $ (31 ) Debt Securities Issued by Corporations 4,416 (15 ) 10,421 (123 ) 14,837 (138 ) Mortgage-Backed Securities: Residential - Government Agencies 88,061 (422 ) 255,816 (4,926 ) 343,877 (5,348 ) Residential - U.S. Government-Sponsored Enterprises 340,453 (909 ) 156,018 (1,569 ) 496,471 (2,478 ) Commercial - Government Agencies 10,529 (19 ) 52,052 (1,388 ) 62,581 (1,407 ) Total Mortgage-Backed Securities 439,043 (1,350 ) 463,886 (7,883 ) 902,929 (9,233 ) Total $ 443,459 $ (1,365 ) $ 514,291 $ (8,037 ) $ 957,750 $ (9,402 ) December 31, 2018 Available-for-Sales: Debt Securities Issued by the U.S. Treasury and Government Agencies $ 157,058 $ (964 ) $ 173,763 $ (1,613 ) $ 330,821 $ (2,577 ) Debt Securities Issued by States and Political Subdivisions 38,138 (59 ) 156,772 (972 ) 194,910 (1,031 ) Debt Securities Issued by Corporations 59,770 (231 ) 163,371 (1,626 ) 223,141 (1,857 ) Mortgage-Backed Securities: Residential - Government Agencies 6,299 (10 ) 19,011 (919 ) 25,310 (929 ) Residential - U.S. Government-Sponsored Enterprises — — 473,380 (12,563 ) 473,380 (12,563 ) Commercial - Government Agencies — — 59,380 (4,484 ) 59,380 (4,484 ) Total Mortgage-Backed Securities 6,299 (10 ) 551,771 (17,966 ) 558,070 (17,976 ) Total $ 261,265 $ (1,264 ) $ 1,045,677 $ (22,177 ) $ 1,306,942 $ (23,441 ) Held-to-Maturity: Debt Securities Issued by the U.S. Treasury $ 99,440 $ (237 ) $ 134,239 $ (856 ) $ 233,679 $ (1,093 ) Debt Securities Issued by Corporations — — 95,511 (1,755 ) 95,511 (1,755 ) Mortgage-Backed Securities: Residential - Government Agencies 12,974 (45 ) 1,491,747 (51,728 ) 1,504,721 (51,773 ) Residential - U.S. Government-Sponsored Enterprises — — 617,000 (20,259 ) 617,000 (20,259 ) Commercial - Government Agencies 19,217 (61 ) 145,715 (5,116 ) 164,932 (5,177 ) Total Mortgage-Backed Securities 32,191 (106 ) 2,254,462 (77,103 ) 2,286,653 (77,209 ) Total $ 131,631 $ (343 ) $ 2,484,212 $ (79,714 ) $ 2,615,843 $ (80,057 ) |
Interest income from taxable and non-taxable investment securities. | Interest income from taxable and non-taxable investment securities for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , were as follows: Year Ended December 31, (dollars in thousands) 2019 2018 2017 Taxable $ 137,204 $ 115,947 $ 108,787 Non-Taxable 6,586 18,515 19,725 Total Interest Income from Investment Securities $ 143,790 $ 134,462 $ 128,512 |
Schedule of carrying value of company's federal home loan bank and federal reserve bank | As of December 31, 2019 , and December 31, 2018 , the carrying value of the Company’s Federal Home Loan Bank of Des Moines (“FHLB Des Moines”) stock and Federal Reserve Bank stock was as follows: December 31, (dollars in thousands) 2019 2018 Federal Home Loan Bank Stock $ 13,000 $ 15,000 Federal Reserve Bank Stock 21,093 20,858 Total $ 34,093 $ 35,858 |
Loans and Leases and the Allo_2
Loans and Leases and the Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 , and December 31, 2018 : December 31, (dollars in thousands) 2019 2018 Commercial Commercial and Industrial $ 1,379,152 $ 1,331,149 Commercial Mortgage 2,518,051 2,302,356 Construction 194,170 170,061 Lease Financing 122,454 176,226 Total Commercial 4,213,827 3,979,792 Consumer Residential Mortgage 3,891,100 3,673,796 Home Equity 1,676,073 1,681,442 Automobile 720,286 658,133 Other 1 489,606 455,611 Total Consumer 6,777,065 6,468,982 Total Loans and Leases $ 10,990,892 $ 10,448,774 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 years ended December 31, 2019 , December 31, 2018 , and December 31, 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 December 31, 2019 , December 31, 2018 , and December 31, 2017 . (dollars in thousands) Commercial Consumer Total For the Year Ended December 31, 2019 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 66,874 $ 39,819 $ 106,693 Loans and Leases Charged-Off (2,738 ) (21,217 ) (23,955 ) Recoveries on Loans and Leases Previously Charged-Off 1,513 9,776 11,289 Net Loans and Leases Recovered (Charged-Off) (1,225 ) (11,441 ) (12,666 ) Provision for Credit Losses 8,152 7,848 16,000 Balance at End of Period $ 73,801 $ 36,226 $ 110,027 As of December 31, 2019 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 2,657 $ 3,246 $ 5,903 Collectively Evaluated for Impairment 71,144 32,980 104,124 Total $ 73,801 $ 36,226 $ 110,027 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 35,442 $ 39,760 $ 75,202 Collectively Evaluated for Impairment 4,178,385 6,737,305 10,915,690 Total $ 4,213,827 $ 6,777,065 $ 10,990,892 For the Year Ended December 31, 2018 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 65,822 $ 41,524 $ 107,346 Loans and Leases Charged-Off (1,505 ) (23,059 ) (24,564 ) Recoveries on Loans and Leases Previously Charged-Off 2,039 8,447 10,486 Net Loans and Leases Recovered (Charged-Off) 534 (14,612 ) (14,078 ) Provision for Credit Losses 518 12,907 13,425 Balance at End of Period $ 66,874 $ 39,819 $ 106,693 As of December 31, 2018 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 222 $ 3,754 $ 3,976 Collectively Evaluated for Impairment 66,652 36,065 102,717 Total $ 66,874 $ 39,819 $ 106,693 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 12,298 $ 42,327 $ 54,625 Collectively Evaluated for Impairment 3,967,494 6,426,655 10,394,149 Total $ 3,979,792 $ 6,468,982 $ 10,448,774 For the Year Ended December 31, 2017 Allowance for Loan and Lease Losses: Balance at Beginning of Period $ 65,680 $ 38,593 $ 104,273 Loans and Leases Charged-Off (1,408 ) (21,847 ) (23,255 ) Recoveries on Loans and Leases Previously Charged-Off 1,485 7,943 9,428 Net Loans and Leases Recovered (Charged-Off) 77 (13,904 ) (13,827 ) Provision for Credit Losses 65 16,835 16,900 Balance at End of Period $ 65,822 $ 41,524 $ 107,346 As of December 31, 2017 Allowance for Loan and Lease Losses: Individually Evaluated for Impairment $ 141 $ 3,775 $ 3,916 Collectively Evaluated for Impairment 65,681 37,749 103,430 Total $ 65,822 $ 41,524 $ 107,346 Recorded Investment in Loans and Leases: Individually Evaluated for Impairment $ 20,216 $ 41,002 $ 61,218 Collectively Evaluated for Impairment 3,746,282 5,989,447 9,735,729 Total $ 3,766,498 $ 6,030,449 $ 9,796,947 |
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 December 31, 2019 , and December 31, 2018 . December 31, 2019 (dollars in thousands) Commercial Commercial Construction Lease Total Pass $ 1,306,040 $ 2,463,858 $ 188,832 $ 120,933 $ 4,079,663 Special Mention 37,722 16,453 4,148 — 58,323 Classified 35,390 37,740 1,190 1,521 75,841 Total $ 1,379,152 $ 2,518,051 $ 194,170 $ 122,454 $ 4,213,827 (dollars in thousands) Residential Home Automobile Other 1 Total Pass $ 3,886,389 $ 1,671,468 $ 719,337 $ 488,113 $ 6,765,307 Classified 4,711 4,605 949 1,493 11,758 Total $ 3,891,100 $ 1,676,073 $ 720,286 $ 489,606 $ 6,777,065 Total Recorded Investment in Loans and Leases $ 10,990,892 December 31, 2018 (dollars in thousands) Commercial Commercial Construction Lease Total Pass $ 1,302,278 $ 2,256,128 $ 168,740 $ 175,223 $ 3,902,369 Special Mention 17,688 30,468 — 5 48,161 Classified 11,183 15,760 1,321 998 29,262 Total $ 1,331,149 $ 2,302,356 $ 170,061 $ 176,226 $ 3,979,792 (dollars in thousands) Residential Home Automobile Other 1 Total Pass $ 3,668,475 $ 1,677,193 $ 657,620 $ 454,697 $ 6,457,985 Classified 5,321 4,249 513 914 10,997 Total $ 3,673,796 $ 1,681,442 $ 658,133 $ 455,611 $ 6,468,982 Total Recorded Investment in Loans and Leases $ 10,448,774 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 December 31, 2019 , and December 31, 2018 . (dollars in thousands) 30 - 59 60 - 89 Past Due Non- Total Current Total Loans Non-Accrual 2 As of December 31, 2019 Commercial Commercial and Industrial $ 12,534 $ 148 $ — $ 830 $ 13,512 $ 1,365,640 $ 1,379,152 $ 421 Commercial Mortgage 2,998 — — 9,244 12,242 2,505,809 2,518,051 9,244 Construction 101 51 — — 152 194,018 194,170 — Lease Financing 720 — — — 720 121,734 122,454 — Total Commercial 16,353 199 — 10,074 26,626 4,187,201 4,213,827 9,665 Consumer Residential Mortgage 6,097 2,070 1,839 4,125 14,131 3,876,969 3,891,100 1,429 Home Equity 3,949 2,280 4,125 3,181 13,535 1,662,538 1,676,073 412 Automobile 16,067 4,154 949 — 21,170 699,116 720,286 — Other 1 3,498 2,074 1,493 — 7,065 482,541 489,606 — Total Consumer 29,611 10,578 8,406 7,306 55,901 6,721,164 6,777,065 1,841 Total $ 45,964 $ 10,777 $ 8,406 $ 17,380 $ 82,527 $ 10,908,365 $ 10,990,892 $ 11,506 As of December 31, 2018 Commercial Commercial and Industrial $ 3,653 $ 118 $ 10 $ 542 $ 4,323 $ 1,326,826 $ 1,331,149 $ 515 Commercial Mortgage 561 — — 2,040 2,601 2,299,755 2,302,356 2,040 Construction — — — — — 170,061 170,061 — Lease Financing — — — — — 176,226 176,226 — Total Commercial 4,214 118 10 2,582 6,924 3,972,868 3,979,792 2,555 Consumer Residential Mortgage 5,319 638 2,446 5,321 13,724 3,660,072 3,673,796 1,203 Home Equity 3,323 1,581 2,684 3,671 11,259 1,670,183 1,681,442 765 Automobile 12,372 2,240 513 — 15,125 643,008 658,133 — Other 1 2,913 1,245 914 — 5,072 450,539 455,611 — Total Consumer 23,927 5,704 6,557 8,992 45,180 6,423,802 6,468,982 1,968 Total $ 28,141 $ 5,822 $ 6,567 $ 11,574 $ 52,104 $ 10,396,670 $ 10,448,774 $ 4,523 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 as of the balance sheet date | The following presents by class, information related to impaired loans as of December 31, 2019 , and December 31, 2018 . (dollars in thousands) Recorded Unpaid Related December 31, 2019 Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 3,334 $ 3,334 $ — Commercial Mortgage 10,658 15,774 — Construction 1,190 1,190 — Total Commercial 15,182 20,298 — Total Impaired Loans with No Related Allowance Recorded $ 15,182 $ 20,298 $ — Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 18,467 $ 18,750 $ 2,552 Commercial Mortgage 1,793 1,793 105 Total Commercial 20,260 20,543 2,657 Consumer Residential Mortgage 17,939 21,553 2,631 Home Equity 3,085 3,085 355 Automobile 17,086 17,086 212 Other 1 1,650 1,650 48 Total Consumer 39,760 43,374 3,246 Total Impaired Loans with an Allowance Recorded $ 60,020 $ 63,917 $ 5,903 Impaired Loans: Commercial $ 35,442 $ 40,841 $ 2,657 Consumer 39,760 43,374 3,246 Total Impaired Loans $ 75,202 $ 84,215 $ 5,903 December 31, 2018 Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 4,587 $ 4,587 $ — Commercial Mortgage 2,712 6,212 — Construction 1,321 1,321 — Total Commercial 8,620 12,120 — Total Impaired Loans with No Related Allowance Recorded $ 8,620 $ 12,120 $ — Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 1,856 $ 2,099 $ 130 Commercial Mortgage 1,822 1,822 92 Total Commercial 3,678 3,921 222 Consumer Residential Mortgage 19,753 23,635 3,051 Home Equity 3,359 3,359 350 Automobile 17,117 17,117 296 Other 1 2,098 2,098 57 Total Consumer 42,327 46,209 3,754 Total Impaired Loans with an Allowance Recorded $ 46,005 $ 50,130 $ 3,976 Impaired Loans: Commercial $ 12,298 $ 16,041 $ 222 Consumer 42,327 46,209 3,754 Total Impaired Loans $ 54,625 $ 62,250 $ 3,976 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 years ended December 31, 2019 , and December 31, 2018 . Year Ended Year Ended (dollars in thousands) Average Interest Average Interest Impaired Loans with No Related Allowance Recorded: Commercial Commercial and Industrial $ 4,447 $ 284 $ 6,342 $ 310 Commercial Mortgage 8,308 62 4,642 160 Construction 1,243 81 1,360 69 Total Commercial 13,998 427 12,344 539 Total Impaired Loans with No Related Allowance Recorded $ 13,998 $ 427 $ 12,344 $ 539 Impaired Loans with an Allowance Recorded: Commercial Commercial and Industrial $ 5,651 $ 82 $ 1,475 $ 100 Commercial Mortgage 3,147 25 623 25 Total Commercial 8,798 107 2,098 125 Consumer Residential Mortgage 18,607 774 20,324 1,080 Home Equity 3,272 156 2,676 121 Automobile 17,529 1,179 16,190 1,116 Other 1 1,783 153 2,624 215 Total Consumer 41,191 2,262 41,814 2,532 Total Impaired Loans with an Allowance Recorded $ 49,989 $ 2,369 $ 43,912 $ 2,657 Impaired Loans: Commercial $ 22,796 $ 534 $ 14,442 $ 664 Consumer 41,191 2,262 41,814 2,532 Total Impaired Loans $ 63,987 $ 2,796 $ 56,256 $ 3,196 1 Comprised of other revolving credit and installment financing. |
Schedule of loans modified as a TDR | The following presents by class, information related to loans modified in a TDR during the years ended December 31, 2019 , and December 31, 2018 . Loans Modified as a TDR for the Loans Modified as a TDR for the Troubled Debt Restructurings (dollars in thousands ) Number of Recorded 1 Increase in Number of Recorded 1 Increase in Commercial Commercial and Industrial 8 $ 17,585 $ 2,465 12 $ 1,449 $ 96 Commercial Mortgage 1 3,623 — 1 1,650 74 Total Commercial 9 21,208 2,465 13 3,099 170 Consumer Residential Mortgage 1 57 0 6 1,458 200 Home Equity 4 368 9 9 1,438 77 Automobile 332 5,911 73 366 7,400 128 Other 2 95 572 17 138 927 25 Total Consumer 432 6,908 99 519 11,223 430 Total 441 $ 28,116 $ 2,564 532 $ 14,322 $ 600 1 The period end balances reflect all partial 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. |
Schedule of loans modified in a TDR that defaulted during the year, and within twelve months of their modification date by class | The following presents by class, loans modified in a TDR that defaulted during the year ended December 31, 2019 , and December 31, 2018 , 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. Year Ended December 31, 2019 Year Ended December 31, 2018 TDRs that Defaulted During the Period, (dollars in thousands) Number of Recorded 1 Number of Recorded 1 Commercial Commercial and Industrial — $ — 1 $ 3 Total Commercial — — 1 3 Consumer Residential Mortgage 1 132 — — Home Equity 1 192 — — Automobile 40 607 38 680 Other 2 22 129 34 194 Total Consumer 64 1,060 72 874 Total 64 $ 1,060 73 $ 877 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. |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Analysis of mortgage servicing rights accounted for under the fair value measurement method | For the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , the change in the fair value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows: (dollars in thousands) 2019 2018 2017 Balance at Beginning of Year $ 1,290 $ 1,454 $ 1,655 Changes in Fair Value: Due to Payoffs (164 ) (164 ) (201 ) Total Changes in Fair Value of Mortgage Servicing Rights (164 ) (164 ) (201 ) Balance at End of Year $ 1,126 $ 1,290 $ 1,454 |
Analysis of mortgage servicing rights accounted for under the amortization method | For the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows: (dollars in thousands) 2019 2018 2017 Balance at Beginning of Year $ 23,020 $ 23,168 $ 22,008 Servicing Rights that Resulted From Asset Transfers 4,485 2,470 3,976 Amortization (3,609 ) (2,618 ) (2,816 ) Balance at End of Year $ 23,896 $ 23,020 $ 23,168 Fair Value: Balance at Beginning of Year $ 29,218 $ 26,716 $ 25,148 Balance at End of Year $ 25,714 $ 29,218 $ 26,716 |
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 December 31, 2019 , and December 31, 2018 were as follows: December 31, 2019 2018 Weighted-Average Constant Prepayment Rate 1 10.76 % 7.01 % Weighted-Average Life (in years) 6.20 7.89 Weighted-Average Note Rate 3.99 % 4.06 % Weighted-Average Discount Rate 2 7.33 % 9.59 % 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 December 31, 2019 , and December 31, 2018 , is presented in the following table. December 31, (dollars in thousands) 2019 2018 Constant Prepayment Rate Decrease in fair value from 25 basis points (“bps”) adverse change $ (296 ) $ (361 ) Decrease in fair value from 50 bps adverse change (586 ) (716 ) Discount Rate Decrease in fair value from 25 bps adverse change (264 ) (325 ) Decrease in fair value from 50 bps adverse change (522 ) (643 ) |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment | The components of the Company’s premises and equipment as of December 31, 2019 , and December 31, 2018 , were as follows: (dollars in thousands) Cost Accumulated Net Book Value December 31, 2019 Premises $ 360,170 $ (235,031 ) $ 125,139 Equipment 133,725 (72,852 ) 60,873 Finance Leases 6,593 (4,217 ) 2,376 Total $ 500,488 $ (312,100 ) $ 188,388 December 31, 2018 Premises $ 339,441 $ (238,450 ) $ 100,991 Equipment 120,165 (71,767 ) 48,398 Finance Leases 6,593 (4,145 ) 2,448 Total $ 466,199 $ (314,362 ) $ 151,837 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | The components of the Company’s other assets as of December 31, 2019 , and December 31, 2018 , were as follows: December 31, (dollars in thousands) 2019 2018 Federal Home Loan Bank and Federal Reserve Bank Stock $ 34,093 $ 35,858 Derivative Financial Instruments 28,931 14,604 Low-Income Housing and Other Equity Investments 84,618 85,860 Deferred Compensation Plan Assets 41,464 31,871 Prepaid Expenses 15,140 8,533 Accounts Receivable 20,180 18,996 Other 48,248 35,160 Total Other Assets $ 272,674 $ 230,882 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Schedule of time deposits with contractual maturities | Time Deposits As of December 31, 2019 , and December 31, 2018 , the Company’s total time deposits were $1.8 billion and $1.7 billion , respectively. As of December 31, 2019 , the contractual maturities of these time deposits were as follows: (dollars in thousands) Amount 2020 $ 1,425,438 2021 272,921 2022 60,676 2023 27,487 2024 10,641 Thereafter 5,268 Total $ 1,802,431 The amount of time deposits with balances of $100,000 or more was $1.5 billion as of December 31, 2019 , and December 31, 2018 , respectively. As of December 31, 2019 , the contractual maturities of these time deposits were as follows: (dollars in thousands) Amount Three Months or Less $ 545,570 Over Three Months through Six Months 253,868 Over Six Months through Twelve Months 477,384 Over Twelve Months 270,831 Total $ 1,547,653 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings Disclosure Abstract | |
Schedule of details of short-term borrowings | Details of the Company’s short-term borrowings (original term of one year or less) as of December 31, 2019 , and December 31, 2018 were as follows: December 31, (dollars in thousands) 2019 2018 Securities Sold Under Agreements to Repurchase (short-term) 1 Amounts Outstanding $ 2,200 $ 4,196 Weighted-Average Interest Rate 1.87 % 1.19 % 1 Consists entirely of repurchase agreements with government entities. Excludes long-term repurchase agreements with government entities of $2.1 million and $0.1 million as of December 31, 2019 , and December 31, 2018 , respectively, and long-term repurchase agreements with private institutions of $600.0 million and $500.0 million as of December 31, 2019 , and December 31, 2018 , respectively. |
Other Debt (Tables)
Other Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of other debt | The Company’s other debt as of December 31, 2019 , and December 31, 2018 , were as follows: December 31, (dollars in thousands) 2019 2018 Federal Home Loan Bank Advances $ 75,000 $ 125,000 Finance Lease Obligations 10,565 10,643 Total $ 85,565 $ 135,643 |
Schedule of annual maturities of long-term debt, exclusive of capital lease obligations | As of December 31, 2019 , the annual maturities of the Company’s other debt, exclusive of finance lease obligations, were expected to be as follows: (dollars in thousands) Amount 2020 $ 75,000 2021 — 2022 — 2023 — 2024 — Thereafter — Total $ 75,000 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts and ratios for the Company and the Bank | The table below sets forth the minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts and ratios for the Company and the Bank as of December 31, 2019 , and December 31, 2018 : (dollars in thousands) Well Capitalized Company Bank As of December 31, 2019 Shareholders’ Equity $ 1,286,832 $ 1,229,775 Common Equity Tier 1 Capital 1,289,424 1,243,939 Tier 1 Capital 1,289,424 1,243,939 Total Capital 1,406,273 1,360,788 Common Equity Tier 1 Capital Ratio 6.5 % 12.18 % 11.76 % Tier 1 Capital Ratio 8.0 % 12.18 % 11.76 % Total Capital Ratio 10.0 % 13.28 % 12.87 % Tier 1 Leverage Ratio 5.0 % 7.25 % 7.01 % As of December 31, 2018 Shareholders’ Equity $ 1,268,200 $ 1,195,132 Common Equity Tier 1 Capital 1,290,723 1,229,227 Tier 1 Capital 1,290,723 1,229,227 Total Capital 1,404,238 1,342,742 Common Equity Tier 1 Capital Ratio 6.5 % 13.07 % 12.46 % Tier 1 Capital Ratio 8.0 % 13.07 % 12.46 % Total Capital Ratio 10.0 % 14.21 % 13.61 % Tier 1 Leverage Ratio 5.0 % 7.60 % 7.24 % |
Components of other comprehensive income | The following table presents the components of other comprehensive income (loss), net of tax: (dollars in thousands) Before Tax Tax Effect Net of Tax Year Ended December 31, 2019 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ 30,169 $ 8,001 $ 22,168 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) that (Increase) Decrease Net Income: (Gain) Loss on Sale (152 ) (49 ) (103 ) Amortization of Unrealized Holding (Gains) Losses on Held-to-Maturity Securities 1 833 221 612 Net Unrealized Gains (Losses) on Investment Securities 30,850 8,173 22,677 Defined Benefit Plans: Net Actuarial Gains (Losses) Arising During the Period (5,046 ) (1,337 ) (3,709 ) Amortization of Net Actuarial Losses (Gains) 1,598 423 1,175 Amortization of Prior Service Credit (288 ) (76 ) (212 ) Defined Benefit Plans, Net (3,736 ) (990 ) (2,746 ) Other Comprehensive Income (Loss) $ 27,114 $ 7,183 $ 19,931 Year Ended December 31, 2018 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ (11,051 ) $ (2,931 ) $ (8,120 ) 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 2,164 569 1,595 Net Unrealized Gains (Losses) on Investment Securities (8,887 ) (2,362 ) (6,525 ) Defined Benefit Plans: Net Actuarial Gains (Losses) Arising During the Period (4,468 ) (1,184 ) (3,284 ) Amortization of Net Actuarial Losses (Gains) 1,835 460 1,375 Amortization of Prior Service Credit (567 ) (150 ) (417 ) Defined Benefit Plans, Net (3,200 ) (874 ) (2,326 ) Other Comprehensive Income (Loss) $ (12,087 ) $ (3,236 ) $ (8,851 ) Year Ended December 31, 2017 Net Unrealized Gains (Losses) on Investment Securities: Net Unrealized Gains (Losses) Arising During the Period $ (5,263 ) $ (2,078 ) $ (3,185 ) 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 1,982 783 1,199 Net Unrealized Gains (Losses) on Investment Securities (3,281 ) (1,295 ) (1,986 ) Defined Benefit Plans: Net Actuarial Gains (Losses) Arising During the Period 884 349 535 Amortization of Net Actuarial Losses (Gains) 1,382 545 837 Amortization of Prior Service Credit (322 ) (127 ) (195 ) Defined Benefit Plans, Net 1,944 767 1,177 Other Comprehensive Income (Loss) $ (1,337 ) $ (528 ) $ (809 ) 1 |
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: (dollars in thousands) Investment Securities-Available-For-Sale Investment Securities-Held-To-Maturities Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2019 Balance at Beginning of Period $ (10,447 ) $ (4,586 ) $ (36,010 ) $ (51,043 ) Other Comprehensive Income (Loss) Before Reclassifications 22,168 — (3,709 ) 18,459 Cumulative Effect of ASU 2019-04 (3,259 ) 3,259 — — Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (103 ) 612 963 1,472 Total Other Comprehensive Income (Loss) 18,806 3,871 (2,746 ) 19,931 Balance at End of Period $ 8,359 $ (715 ) $ (38,756 ) $ (31,112 ) Year Ended December 31, 2018 Balance at Beginning Period $ (1,915 ) $ (5,085 ) $ (27,715 ) $ (34,715 ) Other Comprehensive Income (Loss) Before Reclassifications (8,120 ) — (3,284 ) (11,404 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 1,595 958 2,553 Total Other Comprehensive Income (Loss) (8,120 ) 1,595 (2,326 ) (8,851 ) Reclassification of the Income Tax Effects of the Tax Act from AOCI (412 ) (1,096 ) (5,969 ) (7,477 ) Balance at End of Period $ (10,447 ) $ (4,586 ) $ (36,010 ) $ (51,043 ) Year Ended December 31, 2017 Balance at Beginning Period $ 1,270 $ (6,284 ) $ (28,892 ) $ (33,906 ) Other Comprehensive Income (Loss) Before Reclassifications (3,185 ) — 535 (2,650 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 1,199 642 1,841 Total Other Comprehensive Income (Loss) (3,185 ) 1,199 1,177 (809 ) Balance at End of Period $ (1,915 ) $ (5,085 ) $ (27,715 ) $ (34,715 ) |
Reclassification out of accumulated other comprehensive income | The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss): 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 (dollars in thousands) Year Ended December 31, 2019 2018 2017 Amortization of Unrealized Holding Gains (Losses) on Investment Securities Held-to-Maturity $ (833 ) $ (2,164 ) $ (1,982 ) Interest Income 221 569 783 Provision for Income Tax (612 ) (1,595 ) (1,199 ) Net of Tax Sales of Investment Securities Available-for-Sale 152 — — Investment Securities Gains (Losses), Net (49 ) — — Provision for Income Tax 103 — — Net of Tax Amortization of Defined Benefit Plans Items Prior Service Credit 2 288 567 322 Net Actuarial Losses 2 (1,598 ) (1,835 ) (1,382 ) (1,310 ) (1,268 ) (1,060 ) Total Before Tax 347 310 418 Provision for Income Tax (963 ) (958 ) (642 ) Net of Tax Total Reclassifications for the Period $ (1,472 ) $ (2,553 ) $ (1,841 ) Net of Tax 1 Amounts in parentheses indicate reductions to net income. 2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 : Weighted Average Shares 2019 2018 2017 Denominator for Basic Earnings Per Share 40,384,328 41,714,770 42,280,931 Dilutive Effect of Equity Based Awards 265,242 284,629 326,126 Denominator for Diluted Earnings Per Share 40,649,570 41,999,399 42,607,057 Antidilutive Stock Options and Restricted Stock Outstanding 4,905 — — |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Selected business segment financial information | Selected business segment financial information as of and for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 were as follows: (dollars in thousands) Retail Commercial Investment Services and Private Banking Treasury Consolidated Year Ended December 31, 2019 Net Interest Income $ 266,429 $ 185,259 $ 39,374 $ 6,653 $ 497,715 Provision for Credit Losses 11,670 976 15 3,339 16,000 Net Interest Income After Provision for Credit Losses 254,759 184,283 39,359 3,314 481,715 Noninterest Income 86,682 33,362 55,696 7,598 183,338 Noninterest Expense (216,688 ) (84,616 ) (64,974 ) (12,949 ) (379,227 ) Income Before Provision for Income Taxes 124,753 133,029 30,081 (2,037 ) 285,826 Provision for Income Taxes (30,725 ) (28,852 ) (7,929 ) 7,593 (59,913 ) Net Income $ 94,028 $ 104,177 $ 22,152 $ 5,556 $ 225,913 Total Assets as of December 31, 2019 $ 6,732,811 $ 4,254,261 $ 321,700 $ 6,786,724 $ 18,095,496 Year Ended December 31, 2018 Net Interest Income $ 264,459 $ 179,577 $ 41,222 $ 1,094 $ 486,352 Provision for Credit Losses 14,898 (760 ) (61 ) (652 ) 13,425 Net Interest Income After Provision for Credit Losses 249,561 180,337 41,283 1,746 472,927 Noninterest Income 79,004 23,733 55,338 10,848 168,923 Noninterest Expense (211,761 ) (81,344 ) (65,847 ) (12,672 ) (371,624 ) Income Before Provision for Income Taxes 116,804 122,726 30,774 (78 ) 270,226 Provision for Income Taxes (29,172 ) (28,496 ) (8,113 ) 15,157 (50,624 ) Net Income $ 87,632 $ 94,230 $ 22,661 $ 15,079 $ 219,602 Total Assets as of December 31, 2018 $ 6,365,263 $ 3,958,523 $ 349,832 $ 6,470,356 $ 17,143,974 Year Ended December 31, 2017 Net Interest Income $ 264,041 $ 171,038 $ 29,693 $ (7,534 ) $ 457,238 Provision for Credit Losses 14,008 (160 ) (21 ) 3,073 16,900 Net Interest Income After Provision for Credit Losses 250,033 171,198 29,714 (10,607 ) 440,338 Noninterest Income 85,042 21,670 57,105 21,600 185,417 Noninterest Expense (209,807 ) (74,209 ) (61,674 ) (12,001 ) (357,691 ) Income Before Provision for Income Taxes 125,268 118,659 25,145 (1,008 ) 268,064 Provision for Income Taxes (44,545 ) (41,797 ) (9,303 ) 12,253 (83,392 ) Net Income $ 80,723 $ 76,862 $ 15,842 $ 11,245 $ 184,672 Total Assets as of December 31, 2017 $ 5,936,568 $ 3,742,991 $ 336,455 $ 7,073,038 $ 17,089,052 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of reconciliation of changes in the benefit obligation and the fair value of plan assets, as well as the funded status recognized in the consolidated statements of condition for the pension plans and postretirement benefit plan | The following table provides a reconciliation of changes in benefit obligation and fair value of plan assets, as well as the funded status recognized in the Company’s consolidated statements of condition for the Pension Plans and postretirement benefit plan for the years ended December 31, 2019 , and December 31, 2018 . Pension Benefits Postretirement Benefits (dollars in thousands) 2019 2018 2019 2018 Benefit Obligation at Beginning of Year $ 102,662 $ 110,080 $ 23,452 $ 24,206 Service Cost — — 455 457 Interest Cost 4,401 4,193 1,025 936 Plan Amendment 3 — — — — Actuarial Losses (Gains) 10,359 (5,031 ) 4,095 (869 ) Employer Benefits Paid 1 (6,785 ) (6,580 ) (1,456 ) (1,278 ) Benefit Obligation at End of Year $ 110,637 $ 102,662 $ 27,571 $ 23,452 Fair Value of Plan Assets at Beginning of Year $ 85,553 $ 96,908 $ — $ — Actual Return on Plan Assets 14,400 (5,246 ) — — Employer Contributions 470 471 1,456 1,278 Employer Benefits Paid 1 (6,785 ) (6,580 ) (1,456 ) (1,278 ) Fair Value of Plan Assets at End of Year $ 93,638 $ 85,553 $ — $ — Funded Status at End of Year 2 $ (16,999 ) $ (17,109 ) $ (27,571 ) $ (23,452 ) 1 Participants' contributions relative to the postretirement benefit plan were offset against employer benefits paid in the table above. Participants' contributions for postretirement benefits were $0.7 million and $0.6 million for the years ended December 31, 2019 , and December 31, 2018 , respectively. 2 Amounts are recognized in Retirement Benefits Payable in the consolidated statements of condition. |
Schedule of amounts recognized in accumulated other comprehensive income (loss) | The following presents the amounts recognized in the Company’s accumulated other comprehensive income for the Pension Plans and postretirement benefit plan as of December 31, 2019 , and December 31, 2018 . Pension Benefits Postretirement Benefits (dollars in thousands) 2019 2018 2019 2018 Amounts Recognized in Accumulated Other Net Actuarial Gains (Losses) $ (41,404 ) $ (42,127 ) $ 1,003 $ 4,261 Net Prior Service Credit — — 1,645 1,856 Total Amounts Recognized in Accumulated Other $ (41,404 ) $ (42,127 ) $ 2,648 $ 6,117 |
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 years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 . Pension Benefits Postretirement Benefits (dollars in thousands) 2019 2018 2017 2019 2018 2017 Service Cost $ — $ — $ — $ 455 $ 457 $ 453 Interest Cost 4,401 4,193 4,665 1,025 936 1,093 Expected Return on Plan Assets (4,993 ) (5,122 ) (5,011 ) — — — Amortization of: Prior Service Credit 1 — — — (288 ) (567 ) (322 ) Net Actuarial Losses (Gains) 1 1,937 2,099 1,817 (339 ) (264 ) (435 ) Net Periodic Benefit Cost $ 1,345 $ 1,170 $ 1,471 $ 853 $ 562 $ 789 1 Represents reclassification adjustments from accumulated other comprehensive income during the period. |
Schedule of assumptions used to determine the benefit obligations/net periodic cost | Assumptions used to determine the benefit obligations as of December 31, 2019 , and December 31, 2018 , for the Company’s Pension Plans and postretirement benefit plan were as follows: Pension Benefits Postretirement Benefits 2019 2018 2019 2018 Weighted Average Assumptions as of December 31: Discount Rate 3.36 % 4.41 % 3.42 % 4.48 % Health Care Cost Trend Rate Assumed For Next Year — — 5.70 % 6.00 % |
Schedule of assumptions used in calculation net periodic benefit cost | Assumptions used to determine the net periodic benefit cost for the Company’s Pension Plans and postretirement benefit plan for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , were as follows: Pension Benefits Postretirement Benefits 2019 2018 2017 2019 2018 2017 Weighted Average Assumptions as of December 31: Discount Rate 4.41 % 3.90 % 4.45 % 4.48 % 3.96 % 4.57 % Expected Long-Term Rate of Return on Plan Assets 5.75 % 5.75 % 5.75 % — — — Health Care Cost Trend Rate — — — 6.00 % 6.30 % 6.50 % |
Schedule of expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter | As of December 31, 2019 , expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter were as follows: (dollars in thousands) Pension Benefits Postretirement Benefits 2020 $ 7,073 $ 1,027 2021 7,215 1,064 2022 7,229 1,146 2023 7,238 1,224 2024 7,240 1,332 Years 2025-2029 35,104 8,612 |
Schedule of the fair values of the retirement plan assets by asset category | Fair Value Measurements Asset Category (dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total as of Dec. 31, 2019 Total as of Dec. 31, 2018 Cash $ 1,269 $ — $ — $ 1,269 $ 726 Equity Securities – Mutual Funds: Large-Cap 1,731 — — 1,731 1,593 Mixed-Cap 29,336 — — 29,336 25,298 International 23,961 — — 23,961 21,621 Emerging Market 2,342 — — 2,342 2,150 Fixed Income Securities – Mutual Funds 34,999 — — 34,999 34,165 Total $ 93,638 $ — $ — $ 93,638 $ 85,553 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of compensation expense and the related income tax benefit recognized for all share-based awards | For the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , compensation expense and the related income tax benefit recognized for stock options and restricted stock were as follows: (dollars in thousands) 2019 2018 2017 Compensation Expense $ 8,338 $ 8,146 $ 7,369 Income Tax Benefit 2,210 2,160 2,910 |
Schedule of activity for restricted stock | The following table presents the activity for restricted stock: Number of Shares Weighted Average Grant Date Fair Value Unvested as of December 31, 2016 270,523 $ 60.58 Granted 124,460 84.53 Vested (52,822 ) 60.06 $ 4,493 Forfeited (22,058 ) 69.46 Unvested as of December 31, 2017 320,103 $ 69.36 Granted 120,173 83.87 Vested (110,231 ) 59.41 $ 9,081 Forfeited (15,558 ) 73.82 Unvested as of December 31, 2018 314,487 $ 78.17 Granted 130,093 82.82 Vested (107,759 ) 66.46 $ 8,910 Forfeited (26,872 ) 83.34 Unvested as of December 31, 2019 1 309,949 $ 83.75 |
Schedule of activity for restricted stock units | The following table presents the activity for RSU: Number of Units Weighted Average Fair Value of Restricted Balance as of December 31, 2016 154,832 $ 59.04 Vested (29,281 ) 58.74 $ 2,516 Forfeited (9,062 ) 60.17 Balance as of December 31, 2017 116,489 $ 60.22 Vested (62,252 ) 57.00 $ 5,127 Forfeited (2,173 ) 63.92 Balance as of December 31, 2018 52,064 $ 63.92 Vested (52,064 ) 82.23 $ 4,311 Balance as of December 31, 2019 — $ — |
Schedule of activity related to stock options | The following table presents the activity related to stock options under all plans for the year ended December 31, 2019 : Stock Weighted Weighted Aggregate Stock Options Outstanding as of January 1, 2019 263,888 $ 45.27 Exercised (25,164 ) 43.74 Forfeited (1,666 ) 47.72 Stock Options Outstanding as of December 31, 2019 237,058 45.44 2.0 $ 11,787 Stock Options Vested and Exercisable as of December 31, 2019 237,058 45.44 2.0 11,787 |
Summary of certain stock option activity of the Company | The following summarizes certain stock option activity of the Company for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 : (dollars in thousands) 2019 2018 2017 Intrinsic Value of Stock Options Exercised $ 1,106 $ 1,634 $ 5,991 Cash Received from Stock Options Exercised 1,473 1,791 7,502 Tax Benefits Realized from Stock Options Exercised 727 240 2,003 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of the Company's Provision for Income Taxes | The components of the Company’s provision for income taxes for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , were as follows: (dollars in thousands) 2019 2018 2017 Current: Federal $ 60,902 $ 45,464 $ 73,176 State 14,426 11,434 6,039 Total Current 75,328 56,898 79,215 Deferred: Federal (9,630 ) (2,172 ) 5,042 State (5,785 ) (4,102 ) (865 ) Total Deferred (15,415 ) (6,274 ) 4,177 Provision for Income Taxes $ 59,913 $ 50,624 $ 83,392 |
Schedule of significant components of the Company's Deferred Tax Liabilities and Assets | As of December 31, 2019 , and December 31, 2018 , significant components of the Company’s deferred tax liabilities and assets were as follows: December 31, (dollars in thousands) 2019 2018 Deferred Tax Liabilities: Accelerated Depreciation $ (4,064 ) $ (2,864 ) Accrued Pension Cost (11,270 ) (11,270 ) Federal Home Loan Bank Stock (3,416 ) (3,416 ) Lease Transactions (48,487 ) (53,230 ) Operating Lease Liabilities (26,731 ) — Energy Tax Credits (2,370 ) (5,274 ) Net Unrealized Gains on Investments Securities (2,751 ) — Investment in Variable Interest Entities (3,783 ) (4,574 ) Deferred Loan Fees (6,498 ) (6,688 ) Originated Mortgage Servicing Rights (6,840 ) (6,548 ) Other (1,597 ) (1,420 ) Gross Deferred Tax Liabilities (117,807 ) (95,284 ) Deferred Tax Assets: Allowance for Loan Losses 30,951 30,045 Minimum Pension Liability 13,980 12,989 Accrued Expenses 18,159 14,805 Postretirement Benefit Obligations 8,130 8,396 Capital Lease Expenses 2,171 2,172 Operating Lease Right-of-Use Assets 28,685 — Restricted Stock 4,369 5,178 Net Unrealized Losses on Investments Securities — 5,421 Deductible State and Local Taxes 3,558 3,242 Low Income Housing Investments 2,157 805 Other 6,236 4,244 Gross Deferred Tax Assets Before Valuation Allowance 118,396 87,297 Valuation Allowance (2,460 ) (1,102 ) Gross Deferred Tax Assets After Valuation Allowance 115,936 86,195 Net Deferred Tax Liabilities $ (1,871 ) $ (9,089 ) |
Schedule of reconciliation of the statutory federal income tax rate to the Company's Effective Tax Rate | The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 : 2019 2018 2017 Statutory Federal Income Tax Rate 21.00 % 21.00 % 35.00 % Increase (Decrease) in Income Tax Rate Resulting From: State Taxes, Net of Federal Income Tax 2.53 2.29 1.50 Tax Reserve Adjustments 1 (0.03 ) — 0.04 Low-Income Housing Investments 0.60 0.22 (1.18 ) Investment Tax Credits (0.84 ) (1.04 ) (1.03 ) Bank-Owned Life Insurance (0.51 ) (0.55 ) (0.85 ) Tax-Exempt Income (0.53 ) (1.29 ) (2.57 ) Excess Tax Benefits - Stock Compensation (0.22 ) (0.34 ) (0.83 ) Leveraged Lease (1.54 ) (0.83 ) (0.03 ) Tax Reform Effects — (0.75 ) 1.25 Other 1 0.50 0.02 (0.19 ) Effective Tax Rate 20.96 % 18.73 % 31.11 % |
Schedule of reconciliation of the Company's Liability for Unrecognized Tax Benefits | December 31, 2019 , December 31, 2018 , and December 31, 2017 : (dollars in thousands) 2019 2018 2017 Unrecognized Tax Benefits at Beginning of Year $ 5,541 $ 5,292 $ 6,574 Gross Increases, Related to Tax Positions Taken in a Prior Period 673 157 273 Gross Increases, Related to Current Period Tax Positions 715 885 1,124 Lapse of Statute of Limitations (809 ) (793 ) (2,679 ) Unrecognized Tax Benefits at End of Year $ 6,120 $ 5,541 $ 5,292 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 , and December 31, 2018 , were as follows: December 31, 2019 December 31, 2018 (dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Interest Rate Lock Commitments $ 48,677 $ 1,280 $ 33,133 $ 871 Forward Commitments 82,735 (182 ) 34,102 (352 ) Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps 802,389 26,070 505,034 (2,537 ) Pay Fixed/Receive Variable Swaps 802,389 (4,777 ) 505,034 6,082 Foreign Exchange Contracts 85,499 163 55,663 793 Conversion Rate Swap Agreement 114,499 — 80,746 — |
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 December 31, 2019 , and December 31, 2018 : December 31, 2019 December 31, 2018 Derivative Financial Instruments Not Designated 1 (dollars in thousands) Asset Liability Asset Liability Interest Rate Lock Commitments $ 1,280 $ — $ 877 $ 6 Forward Commitments 23 205 4 356 Interest Rate Swap Agreements 27,344 6,051 12,915 9,370 Foreign Exchange Contracts 284 121 808 15 Total $ 28,931 $ 6,377 $ 14,604 $ 9,747 1 |
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 years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 : Location of Net Gains (Losses)Recognized in the Year Ended December 31, Derivative Financial Instruments Not Designated (dollars in thousands) 2019 2018 2017 Interest Rate Lock Commitments Mortgage Banking $ 12,185 $ 3,534 $ 5,643 Forward Commitments Mortgage Banking (2,340 ) 821 (1,275 ) Interest Rate Swap Agreements Other Noninterest Income 7,172 1,835 698 Foreign Exchange Contracts Other Noninterest Income 2,891 3,163 3,296 Conversion Rate Swap Agreement Investment Securities Gains (Losses), Net (453 ) (1,000 ) — Total $ 19,455 $ 8,353 $ 8,362 |
Affordable Housing Projects T_2
Affordable Housing Projects Tax Credit Partnerships (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | As of December 31, 2019 , the expected payments for unfunded affordable housing commitments were as follows: (dollars in thousands) Amount 2020 $ 14,286 2021 5,310 2022 79 2023 55 2024 55 Thereafter 1,485 Total Unfunded Commitments $ 21,270 The following table presents tax credits and other tax benefits recognized and amortization expense related to affordable housing for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 . (dollars in thousands) 2019 2018 2017 Effective Yield Method Tax credits and other tax benefits recognized $ 11,719 $ 13,572 $ 13,569 Amortization Expense in Provision for Income Taxes 7,566 8,311 8,373 Proportional Amortization Method Tax credits and other tax benefits recognized $ 3,014 $ 1,641 $ 1,040 Amortization Expense in Provision for Income Taxes 2,578 1,332 800 |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 , and December 31, 2018 , 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 December 31, 2019 Class of Collateral Pledged: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ — $ 199,173 $ 38,065 $ 237,238 Debt Securities Issued by States and Political Subdivisions 1,200 1,100 — 490 2,790 Mortgage-Backed Securities: Residential - Government Agencies — 1,516 25,827 88,391 115,734 Residential - U.S. Government-Sponsored Enterprises — — — 248,544 248,544 Total $ 1,200 $ 2,616 $ 225,000 $ 375,490 $ 604,306 December 31, 2018 Class of Collateral Pledged: Debt Securities Issued by the U.S. Treasury and Government Agencies $ — $ — $ 198,442 $ 117,021 $ 315,463 Debt Securities Issued by States and Political Subdivisions 1,906 1,590 — — 3,496 Mortgage-Backed Securities: Residential - Government Agencies 800 — 26,558 70,341 97,699 Residential - U.S. Government-Sponsored Enterprises — — — 87,638 87,638 Total $ 2,706 $ 1,590 $ 225,000 $ 275,000 $ 504,296 |
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 December 31, 2019 , and December 31, 2018 . The swap agreements we have 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 1 Net Amount December 31, 2019 Assets: Interest Rate Swap Agreements: Institutional Counterparties $ 584 $ — $ 584 $ 584 $ — $ — Liabilities: Interest Rate Swap Agreements: Institutional Counterparties 5,361 — 5,361 584 3,818 959 Repurchase Agreements: Private Institutions 600,000 — 600,000 — 600,000 — Government Entities 4,306 — 4,306 — 4,306 — Total Repurchase Agreements $ 604,306 $ — $ 604,306 $ — $ 604,306 $ — December 31, 2018 Assets: Interest Rate Swap Agreements: Institutional Counterparties $ 7,572 $ — $ 7,572 $ 1,490 $ — $ 6,082 Liabilities: Interest Rate Swap Agreements: Institutional Counterparties 1,490 — 1,490 1,490 — — Repurchase Agreements: Private Institutions 500,000 — 500,000 — 500,000 — Government Entities 4,296 — 4,296 — 4,296 — Total Repurchase Agreements $ 504,296 $ — $ 504,296 $ — $ 504,296 $ — 1 The application of collateral cannot reduce the net amount below zero. Therefore, excess collateral is not reflected in this table. For repurchase agreements with private institutions, the fair value of investment securities pledged was $645.3 million and $526.7 million as of December 31, 2019 , and December 31, 2018 , respectively. For repurchase agreements with government entities, the fair value of investment securities pledged was $5.5 million and $6.8 million as of December 31, 2019 , and December 31, 2018 , respectively. |
Commitments, Contingencies, a_2
Commitments, Contingencies, and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Credit commitments | The Company’s credit commitments as of December 31, 2019 , were as follows: (dollars in thousands) December 31, 2019 Unfunded Commitments to Extend Credit $ 2,713,937 Standby Letters of Credit 81,000 Commercial Letters of Credit 16,981 Total $ 2,811,918 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 , and December 31, 2018 : (dollars in thousands) Quoted Prices Significant Significant Total December 31, 2019 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 1,155 $ 219,976 $ — $ 221,131 Debt Securities Issued by States and Political Subdivisions — 55,097 — 55,097 Debt Securities Issued by U.S. Government-Sponsored Enterprises — 22,147 — 22,147 Debt Securities Issued by Corporations — 336,321 — 336,321 Mortgage-Backed Securities: Residential - Government Agencies — 1,172,826 — 1,172,826 Residential - U.S. Government-Sponsored Enterprises — 586,761 — 586,761 Commercial - Government Agencies — 224,720 — 224,720 Total Mortgage-Backed Securities — 1,984,307 — 1,984,307 Total Investment Securities Available-for-Sale 1,155 2,617,848 — 2,619,003 Loans Held for Sale — 39,062 — 39,062 Mortgage Servicing Rights — — 1,126 1,126 Other Assets 41,464 — — 41,464 Derivatives 1 — 308 28,623 28,931 Total Assets Measured at Fair Value on a $ 42,619 $ 2,657,218 $ 29,749 $ 2,729,586 Liabilities: Derivatives 1 $ — $ 327 $ 6,050 $ 6,377 Total Liabilities Measured at Fair Value on a $ — $ 327 $ 6,050 $ 6,377 December 31, 2018 Assets: Investment Securities Available-for-Sale Debt Securities Issued by the U.S. Treasury and Government Agencies $ 972 $ 391,429 $ — $ 392,401 Debt Securities Issued by States and Political Subdivisions — 563,996 — 563,996 Debt Securities Issued by U.S. Government-Sponsored Enterprises — 56 — 56 Debt Securities Issued by Corporations — 223,140 — 223,140 Mortgage-Backed Securities: Residential - Government Agencies — 190,442 — 190,442 Residential - U.S. Government-Sponsored Enterprises — 578,527 — 578,527 Commercial - Government Agencies — 59,380 — 59,380 Total Mortgage-Backed Securities — 828,349 — 828,349 Total Investment Securities Available-for-Sale 972 2,006,970 — 2,007,942 Loans Held for Sale — 10,987 — 10,987 Mortgage Servicing Rights — — 1,290 1,290 Other Assets 31,871 — — 31,871 Derivatives 1 — 812 13,792 14,604 Total Assets Measured at Fair Value on a $ 32,843 $ 2,018,769 $ 15,082 $ 2,066,694 Liabilities: Derivatives 1 $ — $ 371 $ 9,376 $ 9,747 Total Liabilities Measured at Fair Value on a $ — $ 371 $ 9,376 $ 9,747 1 The fair value of each class of derivatives is shown in Note 17 Derivative Financial Instruments . |
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | For the years ended December 31, 2019 , and December 31, 2018 , the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (dollars in thousands) Mortgage 1 Net Derivative Assets and Liabilities 2 Year Ended December 31, 2019 Balance as of January 1, 2019 $ 1,290 $ 4,416 Realized and Unrealized Net Gains (Losses): Included in Net Income (164 ) 12,138 Transfers to Loans Held for Sale — (11,776 ) Variation Margin Payments — 17,795 Balance as of December 31, 2019 $ 1,126 $ 22,573 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 22,573 Year Ended December 31, 2018 Balance as of January 1, 2018 $ 1,454 $ 894 Realized and Unrealized Net Gains (Losses): Included in Net Income (164 ) 3,534 Transfers to Loans Held for Sale — (3,451 ) Variation Margin Payments $ — $ 3,439 Balance as of December 31, 2018 $ 1,290 $ 4,416 Total Unrealized Net Gains (Losses) Included in Net Income $ — $ 4,416 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 December 31, 2019 , and December 31, 2018 , the significant unobservable inputs used in the fair value measurements were as follows: Significant Unobservable Inputs (weighted-average) Fair Value December 31, December 31, (dollars in thousands) Valuation Technique Description 2019 2018 2019 2018 Mortgage Servicing Rights Discounted Cash Flow Constant Prepayment Rate 1 10.76 % 7.01 % $ 26,840 $ 30,508 Discount Rate 2 7.33 % 9.59 % Net Derivative Assets and Liabilities: Interest Rate Lock Commitments Pricing Model Closing Ratio 92.24 % 89.00 % $ 1,280 $ 871 Interest Rate Swap Agreements Discounted Cash Flow Credit Factor 0.20 % 0.06 % $ 21,293 $ 3,545 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. |
Assets and liabilities measured at fair value on a nonrecurring basis | For the year ended December 31, 2019 , the Company recorded a $0.2 million impairment charge to fully write-down the net book value of aircraft parts that were previously on lease agreements. An impairment charge (included in other noninterest expense in the Company's consolidated statements of income) was recorded in the third quarter of 2019 to reduce the carrying value to estimated fair value less cost to sell based on recent appraisals, market conditions, and management judgment. Due to the use of significant unobservable inputs combined with significant management judgment regarding the fair value of the equipment held for sale, the carrying value was deemed a Level 3 measurement. For the year ended December 31, 2018 , 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. |
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 December 31, 2019 , and December 31, 2018 . (dollars in thousands) Aggregate Aggregate Aggregate Fair Value December 31, 2019 Loans Held for Sale $ 39,062 $ 38,293 $ 769 December 31, 2018 Loans Held for Sale $ 10,987 $ 10,656 $ 331 |
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 December 31, 2019 , and December 31, 2018 . 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 (dollars in thousands) Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Significant December 31, 2019 Financial Instruments – Assets Investment Securities Held-to-Maturity $ 3,042,294 $ 3,062,882 $ 275,663 $ 2,787,219 $ — Loans 10,664,885 10,873,208 — — 10,873,208 Financial Instruments – Liabilities Time Deposits 1,802,431 1,800,773 — 1,800,773 — Securities Sold Under Agreements to Repurchase 604,306 627,780 — 627,780 — Other Debt 1 75,000 75,581 — 75,581 — December 31, 2018 Financial Instruments – Assets Investment Securities Held-to-Maturity $ 3,482,092 $ 3,413,994 $ 352,216 $ 3,061,778 $ — Loans 10,084,527 10,008,417 — — 10,008,417 Financial Instruments – Liabilities Time Deposits 1,745,522 1,734,447 — 1,734,447 — Securities Sold Under Agreements to Repurchase 504,296 504,288 — 504,288 — Other Debt 1 125,000 124,559 — 124,559 — 1 Excludes finance lease obligations. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 . Year Ended December 31, (dollars in thousands) 2019 2018 2017 Noninterest Income In-scope of Topic 606: Trust and Asset Management $ 44,233 $ 43,877 $ 45,430 Service Charges on Deposit Accounts 13,042 13,165 15,191 Fees, Exchange, and Other Service Charges 46,381 46,350 44,560 Annuity and Insurance 6,813 5,615 6,444 Other 9,633 9,652 8,966 Noninterest Income (in-scope of Topic 606) 120,102 118,659 120,591 Noninterest Income (out-of-scope of Topic 606) 63,236 50,264 64,826 Total Noninterest Income $ 183,338 $ 168,923 $ 185,417 |
Bank of Hawaii Corporation Fi_2
Bank of Hawaii Corporation Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed statements of income | Condensed Statements of Comprehensive Income Year Ended December 31, (dollars in thousands) 2019 2018 2017 Income Dividends from Bank of Hawaii $ 220,000 $ 185,000 $ 130,000 Investment Securities Gains (Losses), Net (850 ) (819 ) 12,027 Other Income 261 198 204 Total Income 219,411 184,379 142,231 Noninterest Expense Intercompany Salaries and Services 768 734 720 Other Expenses 1,682 1,701 1,401 Total Noninterest Expense 2,450 2,435 2,121 Income Before Income Tax Benefit and Equity in Undistributed Income of Subsidiaries 216,961 181,944 140,110 Income Tax Benefit (Expense) 1,818 2,229 (3,557 ) Equity in Undistributed Income of Subsidiaries 7,134 35,429 48,119 Net Income $ 225,913 $ 219,602 $ 184,672 Comprehensive Income $ 245,844 $ 210,751 $ 183,863 |
Schedule of condensed statements of condition | Condensed Statements of Condition (dollars in thousands) December 31, 2019 December 31, 2018 Assets Cash with Bank of Hawaii $ 37,056 $ 52,731 Investment Securities Held-to-Maturity 4,974 4,999 Goodwill 14,129 14,129 Income Taxes Receivable and Deferred Tax Assets 1,979 1,520 Other Assets 10,422 8,468 Equity in Net Assets of Subsidiaries 1,229,775 1,195,132 Total Assets $ 1,298,335 $ 1,276,979 Liabilities Income Taxes Payable $ 58 $ 60 Other Liabilities 11,445 8,719 Total Liabilities 11,503 8,779 Shareholders' Equity 1,286,832 1,268,200 Total Liabilities and Shareholders' Equity $ 1,298,335 $ 1,276,979 |
Schedule of condensed statements of cash flows | Condensed Statements of Cash Flows Year Ended December 31, (dollars in thousands) 2019 2018 2017 Operating Activities Net Income $ 225,913 $ 219,602 $ 184,672 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Share-Based Compensation 760 630 573 Net (Gains) Losses on Sales of Investment Securities 850 819 (12,027 ) Equity in Undistributed Income of Subsidiaries (7,134 ) (35,429 ) (48,119 ) Net Change in Other Assets and Other Liabilities (135 ) 870 (6,477 ) Net Cash Provided by Operating Activities 220,254 186,492 118,622 Investing Activities Capital Distribution from BOHC Investment Fund LLC — — 613 Capital Contributions to the Bank — — (12,467 ) Proceeds from (Expenses related to) Sales of Investment Securities 4,259 (819 ) 12,027 Purchase of Investment Securities Held-to-Maturity (4,933 ) — — Net Cash Provided by (Used in) Investing Activities (674 ) (819 ) 173 Financing Activities Proceeds from Issuance of Common Stock 7,872 7,873 13,101 Repurchase of Common Stock (137,649 ) (91,988 ) (47,076 ) Cash Dividends Paid (105,478 ) (98,496 ) (87,066 ) Net Cash Used in Financing Activities (235,255 ) (182,611 ) (121,041 ) Net Change in Cash and Cash Equivalents (15,675 ) 3,062 (2,246 ) Cash and Cash Equivalents at Beginning of Period 52,731 49,669 51,915 Cash and Cash Equivalents at End of Period $ 37,056 $ 52,731 $ 49,669 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities | The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated statements of condition. (dollars in thousands) December 31, 2019 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Operating Lease Right-of-Use Assets $ 100,838 Finance lease right-of-use assets Premises and Equipment, Net 2,376 Total Lease Right-of-Use Assets $ 103,214 Lease Liabilities Operating lease liabilities Operating Lease Liabilities $ 108,210 Finance lease liabilities Other Debt 10,565 Total Lease Liabilities $ 118,775 |
Lease cost and other information | For the Company’s only finance lease, the Company utilized its incremental borrowing rate at lease inception. December 31, 2019 Weighted-average remaining lease term Operating leases 16.8 years Finance leases 33.0 years Weighted-average discount rate Operating leases 3.67 % Finance leases 7.04 % The following table represents lease costs and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Variable lease cost also includes payments for ATM location leases in which payments are based on a percentage of ATM transactions (i.e., ATM surcharge fees), rather than a fixed amount. (dollars in thousands) 2019 Lease Costs Operating lease cost $ 12,616 Variable lease cost 3,504 Short-term lease cost 591 Finance lease cost Interest on lease liabilities 1 747 Amortization of right-of-use assets 72 Sublease income (8,281 ) Net lease cost $ 9,249 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12,779 Operating cash flows from finance leases 747 Financing cash flows from finance leases 78 Right-of-use assets obtained in exchange for new operating lease liabilities 4,101 Right-of-use assets obtained in exchange for new finance lease liabilities — 1 Included in other debt interest expense in the Company’s consolidated statements of income. All other lease costs in this table are included in net occupancy expense. |
Finance Lease, Liability, Maturity | Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more as of December 31, 2019 , were as follows: (dollars in thousands) Finance Leases Operating Leases 2020 $ 825 $ 12,003 2021 825 11,329 2022 825 10,515 2023 825 9,687 2024 825 8,235 Thereafter 23,105 100,180 Total Future Minimum Lease Payments 27,230 151,949 Amounts Representing Interest (16,665 ) (43,739 ) Present Value of Net Future Minimum Lease Payments $ 10,565 $ 108,210 |
Operating Lease, Liability, Maturity | Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more as of December 31, 2019 , were as follows: (dollars in thousands) Finance Leases Operating Leases 2020 $ 825 $ 12,003 2021 825 11,329 2022 825 10,515 2023 825 9,687 2024 825 8,235 Thereafter 23,105 100,180 Total Future Minimum Lease Payments 27,230 151,949 Amounts Representing Interest (16,665 ) (43,739 ) Present Value of Net Future Minimum Lease Payments $ 10,565 $ 108,210 |
Lease Receivable, Maturity | Future minimum rental income under operating leases, including subleases, as of December 31, 2019 , were as follows: (dollars in thousands) Minimum Rental Income 2020 $ 6,614 2021 5,129 2022 3,817 2023 2,554 2024 1,152 Thereafter 4,530 Total $ 23,796 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (VIEs, Receivables and loans, Cash Equivalents) (Details 1) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)classsegmentcomponent | Dec. 31, 2018USD ($) | |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | $ 84.6 | $ 85.9 |
Loans and Leases | ||
Number of portfolio segments of loans and leases (commercial and consumer) | segment | 2 | |
Number of classes of loans and leases determined by management | class | 8 | |
Loans modified in a troubled debt restructuring | ||
Period during which non-accrual loan that has been modified in a troubled debt restructuring remains on non-accrual status (in months) | 6 months | |
Number of components of company's reserve for credit losses | component | 2 | |
Cash and Cash Equivalents | ||
Maximum original maturity period of cash and cash equivalents (in days) | 90 days | |
Low-income housing partnerships | ||
Variable Interest Entity [Line Items] | ||
Period over which tax credits or benefits are generally recognized (in years) | 10 years | |
Unfunded commitments to fund low-income housing partnerships | $ 21.3 | $ 15.2 |
Solar energy partnerships | ||
Variable Interest Entity [Line Items] | ||
Period over which tax credits or benefits are generally recognized (in years) | 6 years | |
Commercial | ||
Non-Performing Loans and Leases | ||
Minimum maturity period to be considered to place loans and leases on non-accrual status (in days) | 90 days | |
Residential mortgage and home equity loan | ||
Non-Performing Loans and Leases | ||
Minimum maturity period to be considered to place loans and leases on non-accrual status (in days) | 120 days | |
Home Equity | ||
Non-Performing Loans and Leases | ||
Minimum maturity period to be considered for loans and leases to be charged off (in days) | 120 days | |
Home Equity | Maximum [Member] | ||
Non-Performing Loans and Leases | ||
Combined loan-to-value ratio, considered in determining whether the entire outstanding balance on the loan is to be charged-off or not (as a percent) | 60.00% | |
Automobile and Other consumer | ||
Non-Performing Loans and Leases | ||
Minimum maturity period to be considered for loans and leases to be charged off (in days) | 120 days | |
Commercial and Industrial | ||
Non-Performing Loans and Leases | ||
Minimum maturity period to be considered for loans and leases to be charged off (in days) | 120 days |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Property and equipment and other) (Details 2) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)plan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Pension and Postretirement Benefit Plans | |||
Number of company's pension plans | plan | 2 | ||
Minimum percentage of net acturial gain (loss) will be amortized in net periodic benefit cost | 10.00% | ||
Income Taxes | |||
Minimum percentage of likelihood of tax position being realized upon ultimate settlement according to management's judgment | 50.00% | ||
Advertising Costs | |||
Advertising costs | $ | $ 6.1 | $ 6 | $ 6 |
Building | Maximum [Member] | |||
Premises and Equipment | |||
Estimated useful lives (in years) | 30 years | ||
Equipment | Maximum [Member] | |||
Premises and Equipment | |||
Estimated useful lives (in years) | 10 years |
Restrictions on Cash and Cash_3
Restrictions on Cash and Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Abstract] | ||
Required Minimum Average Cash Reserve Maintained with Federal Reserve Bank | $ 68,400 | $ 72,300 |
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||
Interest-Bearing Deposits in Other Banks | 4,979 | 3,028 |
Federal Funds Sold | 254,574 | 198,860 |
Cash and Due From Banks | 299,105 | 324,081 |
Total Cash and Cash Equivalents | $ 558,658 | $ 525,969 |
Investment Securities (Amort co
Investment Securities (Amort cost, unrealized gains and losses, and fair value) (Details 1) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity: Amortized Cost | $ 3,042,294 | $ 3,482,092 | $ 3,928,170 |
Held-to-Maturity: Gross Unrealized Gains | 29,990 | 11,959 | 20,949 |
Held-to-Maturity: Gross Unrealized Losses | (9,402) | (80,057) | (54,998) |
Held-to-Maturity: Fair Value | 3,062,882 | 3,413,994 | 3,894,121 |
Available-for-Sale: | |||
Debt Securities, Available-for-sale, Amortized Cost | 2,607,636 | 2,022,158 | 2,236,144 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 21,143 | 9,225 | 15,695 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 9,776 | 23,441 | 18,860 |
Debt Securities, Available-for-sale | 2,619,003 | 2,007,942 | 2,232,979 |
Available-for-sale Securities, Amortized Cost Basis | 2,607,636 | ||
Available-for-Sale | 2,619,003 | 2,007,942 | |
Debt Securities Issued by the U.S. Treasury and Government Agencies | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity: Amortized Cost | 274,375 | 353,122 | 375,074 |
Held-to-Maturity: Gross Unrealized Gains | 1,319 | 186 | 18 |
Held-to-Maturity: Gross Unrealized Losses | (31) | (1,093) | (1,451) |
Held-to-Maturity: Fair Value | 275,663 | 352,215 | 373,641 |
Available-for-Sale: | |||
Debt Securities, Available-for-sale, Amortized Cost | 222,365 | 394,485 | 424,912 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 213 | 493 | 2,053 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1,447 | 2,577 | 1,035 |
Debt Securities, Available-for-sale | 221,131 | 392,401 | 425,930 |
Debt Securities Issued by States and Political Subdivisions | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity: Amortized Cost | 54,811 | 234,602 | 238,504 |
Held-to-Maturity: Gross Unrealized Gains | 1,236 | 6,150 | 9,125 |
Held-to-Maturity: Gross Unrealized Losses | 0 | 0 | 0 |
Held-to-Maturity: Fair Value | 56,047 | 240,752 | 247,629 |
Available-for-Sale: | |||
Debt Securities, Available-for-sale, Amortized Cost | 54,480 | 559,800 | 618,167 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 631 | 5,227 | 9,894 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 14 | 1,031 | 1,042 |
Debt Securities, Available-for-sale | 55,097 | 563,996 | 627,019 |
US Government-sponsored Enterprises Debt Securities [Member] | |||
Available-for-Sale: | |||
Debt Securities, Available-for-sale, Amortized Cost | 22,128 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 19 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Debt Securities, Available-for-sale | 22,147 | ||
Available-for-sale Securities, Amortized Cost Basis | 56 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Available-for-Sale | 56 | ||
Debt Securities Issued by Corporations | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity: Amortized Cost | 14,975 | 97,266 | 119,635 |
Held-to-Maturity: Gross Unrealized Gains | 0 | 0 | 123 |
Held-to-Maturity: Gross Unrealized Losses | (138) | (1,755) | (1,591) |
Held-to-Maturity: Fair Value | 14,837 | 95,511 | 118,167 |
Available-for-Sale: | |||
Debt Securities, Available-for-sale, Amortized Cost | 335,553 | 224,997 | 268,003 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1,401 | 0 | 199 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 633 | 1,857 | 2,091 |
Debt Securities, Available-for-sale | 336,321 | 223,140 | 266,111 |
Mortgage-Backed Securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity: Amortized Cost | 2,698,133 | 2,797,102 | 3,194,957 |
Held-to-Maturity: Gross Unrealized Gains | 27,435 | 5,623 | 11,683 |
Held-to-Maturity: Gross Unrealized Losses | (9,233) | (77,209) | (51,956) |
Held-to-Maturity: Fair Value | 2,716,335 | 2,725,516 | 3,154,684 |
Available-for-Sale: | |||
Debt Securities, Available-for-sale, Amortized Cost | 1,973,110 | 842,820 | 925,062 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 18,879 | 3,505 | 3,549 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 7,682 | 17,976 | 14,692 |
Debt Securities, Available-for-sale | 1,984,307 | 828,349 | 913,919 |
Residential - Government Agencies | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity: Amortized Cost | 1,067,416 | 1,861,874 | 2,229,985 |
Held-to-Maturity: Gross Unrealized Gains | 13,247 | 3,886 | 9,975 |
Held-to-Maturity: Gross Unrealized Losses | (5,348) | (51,773) | (37,047) |
Held-to-Maturity: Fair Value | 1,075,315 | 1,813,987 | 2,202,913 |
Available-for-Sale: | |||
Debt Securities, Available-for-sale, Amortized Cost | 1,164,466 | 189,645 | 233,268 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 11,627 | 1,726 | 3,129 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 3,267 | 929 | 1,037 |
Debt Securities, Available-for-sale | 1,172,826 | 190,442 | 235,360 |
Residential - U.S. Government Sponsored Enterprises | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity: Amortized Cost | 1,546,479 | 758,835 | 763,312 |
Held-to-Maturity: Gross Unrealized Gains | 13,871 | 1,590 | 911 |
Held-to-Maturity: Gross Unrealized Losses | (2,478) | (20,259) | (11,255) |
Held-to-Maturity: Fair Value | 1,557,872 | 740,166 | 752,968 |
Available-for-Sale: | |||
Debt Securities, Available-for-sale, Amortized Cost | 584,272 | 589,311 | 619,795 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 4,363 | 1,779 | 420 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1,874 | 12,563 | 10,403 |
Debt Securities, Available-for-sale | 586,761 | 578,527 | 609,812 |
Commercial - Government Agencies | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity: Amortized Cost | 84,238 | 176,393 | 201,660 |
Held-to-Maturity: Gross Unrealized Gains | 317 | 147 | 797 |
Held-to-Maturity: Gross Unrealized Losses | (1,407) | (5,177) | (3,654) |
Held-to-Maturity: Fair Value | 83,148 | 171,363 | 198,803 |
Available-for-Sale: | |||
Debt Securities, Available-for-sale, Amortized Cost | 224,372 | 63,864 | 71,999 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 2,889 | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 2,541 | 4,484 | 3,252 |
Debt Securities, Available-for-sale | $ 224,720 | $ 59,380 | $ 68,747 |
Investment Securities (Contract
Investment Securities (Contractual Maturities and Narrative) (Details 2) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | |||
Prepayable debt securities carrying value | $ 2,607,636 | $ 2,022,158 | $ 2,236,144 |
Unrealized gain | 21,143 | 9,225 | 15,695 |
Available-for-Sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis Rolling Maturity [Abstract] | |||
Due in One Year or Less | 126,483 | ||
Due After One Year Through Five Years | 114,822 | ||
Due After Five Years Through Ten Years | 171,950 | ||
Due After Ten Years | 51 | ||
Available-for-Sale, Total | 413,306 | ||
Available-for-Sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract] | |||
Due in One Year or Less | 126,672 | ||
Due After One Year Through Five Years | 114,858 | ||
Due After Five Years Through Ten Years | 173,137 | ||
Due After Ten Years | 52 | ||
Fair Value, Total | 414,719 | ||
Available-for-Sale: Amortized Cost | 2,607,636 | ||
Available-for-Sale | 2,619,003 | 2,007,942 | |
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Rolling Maturity [Abstract] | |||
Due in One Year or Less | 294,760 | ||
Due After One Year Through Five Years | 49,401 | ||
Amortized Cost, Total | 344,161 | ||
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | |||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Rolling within One Year, Fair Value | 296,286 | ||
Due After One Year Through Five Years | 50,261 | ||
Fair Value, Total | 346,547 | ||
Held-to-Maturity: Amortized Cost | 3,042,294 | ||
Held-to-Maturity: Fair Value | 3,062,882 | 3,413,994 | 3,894,121 |
Carrying value of investment securities which were pledged to secure deposits of gov't entities and repos | 2,600,000 | 2,300,000 | 2,400,000 |
Mortgage-Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Prepayable debt securities carrying value | 1,973,110 | 842,820 | 925,062 |
Unrealized gain | 18,879 | 3,505 | 3,549 |
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 | 1,973,110 | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed-Securities: Fair Value | 1,984,307 | ||
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | |||
Held-to-Maturity: Mortgage-Backed-Securities: Amortized Cost | 2,698,133 | ||
Held-to-Maturity: Mortgage-Backed-Securities: Fair Value | 2,716,335 | ||
Held-to-Maturity: Fair Value | 2,716,335 | 2,725,516 | 3,154,684 |
US Government Agencies Debt 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 | 221,220 | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed-Securities: Fair Value | 219,977 | ||
Residential - Government Agencies | |||
Debt Securities, Available-for-sale [Line Items] | |||
Prepayable debt securities carrying value | 1,164,466 | 189,645 | 233,268 |
Unrealized gain | 11,627 | 1,726 | 3,129 |
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 | 1,164,466 | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed-Securities: Fair Value | 1,172,826 | ||
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | |||
Held-to-Maturity: Mortgage-Backed-Securities: Amortized Cost | 1,067,416 | ||
Held-to-Maturity: Mortgage-Backed-Securities: Fair Value | 1,075,315 | ||
Held-to-Maturity: Fair Value | 1,075,315 | 1,813,987 | 2,202,913 |
Residential - U.S. Government Sponsored Enterprises | |||
Debt Securities, Available-for-sale [Line Items] | |||
Prepayable debt securities carrying value | 584,272 | 589,311 | 619,795 |
Unrealized gain | 4,363 | 1,779 | 420 |
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 | 584,272 | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed-Securities: Fair Value | 586,761 | ||
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | |||
Held-to-Maturity: Mortgage-Backed-Securities: Amortized Cost | 1,546,479 | ||
Held-to-Maturity: Mortgage-Backed-Securities: Fair Value | 1,557,872 | ||
Held-to-Maturity: Fair Value | 1,557,872 | 740,166 | 752,968 |
Commercial - Government Agencies | |||
Debt Securities, Available-for-sale [Line Items] | |||
Prepayable debt securities carrying value | 224,372 | 63,864 | 71,999 |
Unrealized gain | 2,889 | 0 | 0 |
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 | 224,372 | ||
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed-Securities: Fair Value | 224,720 | ||
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract] | |||
Held-to-Maturity: Mortgage-Backed-Securities: Amortized Cost | 84,238 | ||
Held-to-Maturity: Mortgage-Backed-Securities: Fair Value | 83,148 | ||
Held-to-Maturity: Fair Value | 83,148 | $ 171,363 | $ 198,803 |
Mortgage-backed, US Government Agencies and Government-Sponsored Enterprises, Municipal Debt Securities And Corporate Debt Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Prepayable debt securities carrying value | 1,000,000 | ||
Unrealized gain | $ 3,100 |
Investment Securities (Gains an
Investment Securities (Gains and Losses on Sales) (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Carrying value of investment securities which were pledged to secure deposits of gov't entities and repos | $ 2,600,000 | $ 2,300,000 | $ 2,400,000 |
Gain on Sale of Investments | 7,810 | 0 | 12,467 |
Loss on Sale of Investments | 11,796 | 3,938 | 2,037 |
Gain (Loss) on Sale of Investments | $ (3,986) | $ (3,938) | $ 10,430 |
Investment Securities (Unrealiz
Investment Securities (Unrealized Position - Less than 12 Mos., 12 Mos. or Longer) (Details 4) $ in Thousands | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 465,117 | $ 261,265 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 2,189 | 1,264 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 474,384 | 1,045,677 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 7,587 | 22,177 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 939,501 | 1,306,942 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 9,776 | 23,441 |
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 443,459 | 131,631 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1,365) | (343) |
12 Months or Longer, Fair Value | 514,291 | 2,484,212 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (8,037) | (79,714) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (9,402) | (80,057) |
Less than 12 Months, Gross Unrealized Losses | (1,365) | (343) |
12 Months or Longer, Gross Unrealized Losses | (8,037) | (79,714) |
Total, Fair Value | $ 957,750 | 2,615,843 |
Number of Investment Securities in Unrealized Loss Position | security | 254 | |
Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 65,479 | 157,058 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 188 | 964 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 101,761 | 173,763 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1,259 | 1,613 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 167,240 | 330,821 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 1,447 | 2,577 |
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 99,440 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (237) |
12 Months or Longer, Fair Value | 39,984 | 134,239 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (31) | (856) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (31) | (1,093) |
Less than 12 Months, Gross Unrealized Losses | 0 | (237) |
12 Months or Longer, Gross Unrealized Losses | (31) | (856) |
Total, Fair Value | 39,984 | 233,679 |
Debt Securities Issued by States and Political Subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 6,788 | 38,138 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 14 | 59 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 440 | 156,772 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 972 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 7,228 | 194,910 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 14 | 1,031 |
Debt Securities Issued by Corporations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 25,892 | 59,770 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 326 | 231 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 74,693 | 163,371 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 307 | 1,626 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 100,585 | 223,141 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 633 | 1,857 |
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 4,416 | 0 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (15) | 0 |
12 Months or Longer, Fair Value | 10,421 | 95,511 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (123) | (1,755) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (138) | (1,755) |
Less than 12 Months, Gross Unrealized Losses | (15) | 0 |
12 Months or Longer, Gross Unrealized Losses | (123) | (1,755) |
Total, Fair Value | 14,837 | 95,511 |
Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 366,958 | 6,299 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1,661 | 10 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 297,490 | 551,771 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 6,021 | 17,966 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 664,448 | 558,070 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 7,682 | 17,976 |
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 439,043 | 32,191 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1,350) | (106) |
12 Months or Longer, Fair Value | 463,886 | 2,254,462 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (7,883) | (77,103) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (9,233) | (77,209) |
Less than 12 Months, Gross Unrealized Losses | (1,350) | (106) |
12 Months or Longer, Gross Unrealized Losses | (7,883) | (77,103) |
Total, Fair Value | 902,929 | 2,286,653 |
Residential - Government Agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 119,271 | 6,299 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 526 | 10 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 170,805 | 19,011 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 2,741 | 919 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 290,076 | 25,310 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 3,267 | 929 |
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 88,061 | 12,974 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (422) | (45) |
12 Months or Longer, Fair Value | 255,816 | 1,491,747 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (4,926) | (51,728) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (5,348) | (51,773) |
Less than 12 Months, Gross Unrealized Losses | (422) | (45) |
12 Months or Longer, Gross Unrealized Losses | (4,926) | (51,728) |
Total, Fair Value | 343,877 | 1,504,721 |
Residential - U.S. Government Sponsored Enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 187,861 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 816 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 73,720 | 473,380 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1,058 | 12,563 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 261,581 | 473,380 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 1,874 | 12,563 |
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 340,453 | 0 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (909) | 0 |
12 Months or Longer, Fair Value | 156,018 | 617,000 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,569) | (20,259) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (2,478) | (20,259) |
Less than 12 Months, Gross Unrealized Losses | (909) | 0 |
12 Months or Longer, Gross Unrealized Losses | (1,569) | (20,259) |
Total, Fair Value | 496,471 | 617,000 |
Commercial - Government Agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 59,826 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 319 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 52,965 | 59,380 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 2,222 | 4,484 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 112,791 | 59,380 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 2,541 | 4,484 |
Held-to-Maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 10,529 | 19,217 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (19) | (61) |
12 Months or Longer, Fair Value | 52,052 | 145,715 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,388) | (5,116) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (1,407) | (5,177) |
Less than 12 Months, Gross Unrealized Losses | (19) | (61) |
12 Months or Longer, Gross Unrealized Losses | (1,388) | (5,116) |
Total, Fair Value | $ 62,581 | $ 164,932 |
Investment Securities (Interest
Investment Securities (Interest Income - Taxable/Non-Taxable Invest. Sec.) (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Interest Income from Investment Securities, Taxable | $ 137,204 | $ 115,947 | $ 108,787 |
Interest Income from Investment Securities, Non-Taxable | 6,586 | 18,515 | 19,725 |
Total Interest Income from Investment Securities | $ 143,790 | $ 134,462 | $ 128,512 |
Investment Securities (FHLB and
Investment Securities (FHLB and FRB Stocks) (Details 6) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal Home Loan Bank Stock | $ 13,000 | $ 15,000 |
Federal Reserve Bank Stock | 21,093 | 20,858 |
Total | $ 34,093 | $ 35,858 |
Investment Securities (Visa Cla
Investment Securities (Visa Class B Restricted Shares Narrative) (Details 7) | Dec. 31, 2019shares |
Visa Class B Restricted Securities | |
Net Investment Income [Line Items] | |
Conversion ratio to Class A shares | 1.6228 |
Equity securities remaining, shares | 80,214 |
Visa Class A Unrestricted Securities | |
Net Investment Income [Line Items] | |
Equity securities remaining, shares | 130,171 |
Loans and Leases and the Allo_3
Loans and Leases and the Allowance for Loan and Lease Losses (Loans and Leases Portolio & Narrative) (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loan and lease portfolio | |||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | $ 1,300 | ||
Loans and Leases | 10,990,892 | $ 10,448,774 | $ 9,796,947 |
Unearned income on loans and leases | 15,100 | ||
Commercial loans and residential mortgage loans pledged to secure an undrawn FRB line of credit | 1,000,000 | 1,000,000 | |
Residential mortgage loans pledged under a blanket pledge arrangement to secure FHLB advance | 3,100,000 | 2,900,000 | |
Net gains related to sales of residential mortgage loans | 5,300 | 1,500 | 4,900 |
Commercial | |||
Loan and lease portfolio | |||
Loans and Leases | 4,213,827 | 3,979,792 | 3,766,498 |
Commercial | Commercial and Industrial | |||
Loan and lease portfolio | |||
Loans and Leases | 1,379,152 | 1,331,149 | |
Commercial | Commercial Mortgage | |||
Loan and lease portfolio | |||
Loans and Leases | 2,518,051 | 2,302,356 | |
Commercial | Construction | |||
Loan and lease portfolio | |||
Loans and Leases | 194,170 | 170,061 | |
Commercial | Lease Financing | |||
Loan and lease portfolio | |||
Loans and Leases | 122,454 | 176,226 | |
Consumer | |||
Loan and lease portfolio | |||
Loans and Leases | 6,777,065 | 6,468,982 | $ 6,030,449 |
Consumer | Residential Mortgage | |||
Loan and lease portfolio | |||
Loans and Leases | 3,891,100 | 3,673,796 | |
Consumer | Home Equity | |||
Loan and lease portfolio | |||
Loans and Leases | 1,676,073 | 1,681,442 | |
Consumer | Automobile | |||
Loan and lease portfolio | |||
Loans and Leases | 720,286 | 658,133 | |
Consumer | Other | |||
Loan and lease portfolio | |||
Loans and Leases | $ 489,606 | $ 455,611 |
Loans and Leases and the Allo_4
Loans and Leases and the Allowance for Loan and Lease Losses (Allowance for Loan and Lease Losses) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses: | ||||||
Balance at the Beginning of Period | $ 106,693 | $ 107,346 | $ 104,273 | |||
Loans and Leases Charged-Off | (23,955) | (24,564) | (23,255) | |||
Recoveries on Loans and Leases Previously Charged-Off | 11,289 | 10,486 | 9,428 | |||
Net Loans and Leases Recovered (Charged-Off) | (12,666) | (14,078) | (13,827) | |||
Provision for Credit Losses | 16,000 | 13,425 | 16,900 | |||
Balance at End of Period | 110,027 | 106,693 | 107,346 | |||
Allowance for Loan and Lease Losses: | ||||||
Individually Evaluated for Impairment | $ 5,903 | $ 3,976 | $ 3,916 | |||
Collectively Evaluated for Impairment | 104,124 | 102,717 | 103,430 | |||
Total | 110,027 | 107,346 | 107,346 | 110,027 | 106,693 | 107,346 |
Recorded Investment in Loans and Leases: | ||||||
Individually Evaluated for Impairment | 75,202 | 54,625 | 61,218 | |||
Collectively Evaluated for Impairment | 10,915,690 | 10,394,149 | 9,735,729 | |||
Total Loans and Leases | 10,990,892 | 10,448,774 | 9,796,947 | |||
Commercial | ||||||
Allowance for Loan and Lease Losses: | ||||||
Balance at the Beginning of Period | 66,874 | 65,822 | 65,680 | |||
Loans and Leases Charged-Off | (2,738) | (1,505) | (1,408) | |||
Recoveries on Loans and Leases Previously Charged-Off | 1,513 | 2,039 | 1,485 | |||
Net Loans and Leases Recovered (Charged-Off) | (1,225) | 534 | 77 | |||
Provision for Credit Losses | 8,152 | 518 | 65 | |||
Balance at End of Period | 73,801 | 66,874 | 65,822 | |||
Allowance for Loan and Lease Losses: | ||||||
Individually Evaluated for Impairment | 2,657 | 222 | 141 | |||
Collectively Evaluated for Impairment | 71,144 | 66,652 | 65,681 | |||
Total | 66,874 | 66,874 | 65,680 | 73,801 | 66,874 | 65,822 |
Recorded Investment in Loans and Leases: | ||||||
Individually Evaluated for Impairment | 35,442 | 12,298 | 20,216 | |||
Collectively Evaluated for Impairment | 4,178,385 | 3,967,494 | 3,746,282 | |||
Total Loans and Leases | 4,213,827 | 3,979,792 | 3,766,498 | |||
Consumer | ||||||
Allowance for Loan and Lease Losses: | ||||||
Balance at the Beginning of Period | 39,819 | 41,524 | 38,593 | |||
Loans and Leases Charged-Off | (21,217) | (23,059) | (21,847) | |||
Recoveries on Loans and Leases Previously Charged-Off | 9,776 | 8,447 | 7,943 | |||
Net Loans and Leases Recovered (Charged-Off) | (11,441) | (14,612) | (13,904) | |||
Provision for Credit Losses | 7,848 | 12,907 | 16,835 | |||
Balance at End of Period | 36,226 | 39,819 | 41,524 | |||
Allowance for Loan and Lease Losses: | ||||||
Individually Evaluated for Impairment | 3,246 | 3,754 | 3,775 | |||
Collectively Evaluated for Impairment | 32,980 | 36,065 | 37,749 | |||
Total | $ 36,226 | $ 41,524 | $ 41,524 | 36,226 | 39,819 | 41,524 |
Recorded Investment in Loans and Leases: | ||||||
Individually Evaluated for Impairment | 39,760 | 42,327 | 41,002 | |||
Collectively Evaluated for Impairment | 6,737,305 | 6,426,655 | 5,989,447 | |||
Total Loans and Leases | $ 6,777,065 | $ 6,468,982 | $ 6,030,449 |
Loans and Leases and the Allo_5
Loans and Leases and the Allowance for Loan and Lease Losses (Credit Quality Indicators & Narrative) (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | $ 10,990,892 | $ 10,448,774 | $ 9,796,947 |
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 (in months) | 6 months | ||
Residential Mortgage | Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
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 | |||
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 | $ 4,213,827 | 3,979,792 | 3,766,498 |
Commercial | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 4,079,663 | 3,902,369 | |
Commercial | Special Mention | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 58,323 | 48,161 | |
Commercial | Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 75,841 | 29,262 | |
Commercial | Commercial and Industrial | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 1,379,152 | 1,331,149 | |
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 | 1,306,040 | 1,302,278 | |
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 | 37,722 | 17,688 | |
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 | 35,390 | 11,183 | |
Commercial | Commercial Mortgage | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 2,518,051 | 2,302,356 | |
Commercial | Commercial Mortgage | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 2,463,858 | 2,256,128 | |
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 | 16,453 | 30,468 | |
Commercial | Commercial Mortgage | Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 37,740 | 15,760 | |
Commercial | Construction | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 194,170 | 170,061 | |
Commercial | Construction | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 188,832 | 168,740 | |
Commercial | Construction | Special Mention | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 4,148 | 0 | |
Commercial | Construction | Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 1,190 | 1,321 | |
Commercial | Lease Financing | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 122,454 | 176,226 | |
Commercial | Lease Financing | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 120,933 | 175,223 | |
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 | 0 | 5 | |
Commercial | Lease Financing | Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 1,521 | 998 | |
Consumer | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 6,777,065 | 6,468,982 | $ 6,030,449 |
Consumer | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | $ 6,765,307 | 6,457,985 | |
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 | $ 11,758 | 10,997 | |
Consumer | Residential Mortgage | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 3,891,100 | 3,673,796 | |
Consumer | Residential Mortgage | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | $ 3,886,389 | 3,668,475 | |
Consumer | 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 | ||
Total Recorded Investment in Loans and Leases | $ 4,711 | 5,321 | |
Consumer | Home Equity | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 1,676,073 | 1,681,442 | |
Consumer | Home Equity | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | $ 1,671,468 | 1,677,193 | |
Consumer | 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 | ||
Total Recorded Investment in Loans and Leases | $ 4,605 | 4,249 | |
Consumer | Automobile | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 720,286 | 658,133 | |
Consumer | Automobile | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 719,337 | 657,620 | |
Consumer | Automobile | Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 949 | 513 | |
Consumer | Other | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 489,606 | 455,611 | |
Consumer | Other | Pass | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | 488,113 | 454,697 | |
Consumer | Other | Classified | |||
Recorded investment in loans and leases by class and by credit quality indicator | |||
Total Recorded Investment in Loans and Leases | $ 1,493 | $ 914 |
Loans and Leases and the Allo_6
Loans and Leases and the Allowance for Loan and Lease Losses (Aging Analysis) (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | $ 17,380 | $ 11,574 | |
Total Past Due and Non-Accrual | 82,527 | 52,104 | |
Current | 10,908,365 | 10,396,670 | |
Total Loans and Leases | 10,990,892 | 10,448,774 | $ 9,796,947 |
Non-Accrual Loans and Leases that are Current | $ 11,506 | 4,523 | |
Number of days non-accrual loans and leases are not past due | 30 days | ||
30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | $ 45,964 | 28,141 | |
60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 10,777 | 5,822 | |
Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 8,406 | 6,567 | |
Commercial | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 10,074 | 2,582 | |
Total Past Due and Non-Accrual | 26,626 | 6,924 | |
Current | 4,187,201 | 3,972,868 | |
Total Loans and Leases | 4,213,827 | 3,979,792 | 3,766,498 |
Non-Accrual Loans and Leases that are Current | 9,665 | 2,555 | |
Commercial | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 16,353 | 4,214 | |
Commercial | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 199 | 118 | |
Commercial | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 10 | |
Commercial | Commercial and Industrial | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 830 | 542 | |
Total Past Due and Non-Accrual | 13,512 | 4,323 | |
Current | 1,365,640 | 1,326,826 | |
Total Loans and Leases | 1,379,152 | 1,331,149 | |
Non-Accrual Loans and Leases that are Current | 421 | 515 | |
Commercial | Commercial and Industrial | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 12,534 | 3,653 | |
Commercial | Commercial and Industrial | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 148 | 118 | |
Commercial | Commercial and Industrial | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 10 | |
Commercial | Commercial Mortgage | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 9,244 | 2,040 | |
Total Past Due and Non-Accrual | 12,242 | 2,601 | |
Current | 2,505,809 | 2,299,755 | |
Total Loans and Leases | 2,518,051 | 2,302,356 | |
Non-Accrual Loans and Leases that are Current | 9,244 | 2,040 | |
Commercial | Commercial Mortgage | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 2,998 | 561 | |
Commercial | Commercial Mortgage | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
Commercial | Commercial Mortgage | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 0 | 0 | |
Commercial | Construction | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 152 | 0 | |
Current | 194,018 | 170,061 | |
Total Loans and Leases | 194,170 | 170,061 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Commercial | Construction | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 101 | 0 | |
Commercial | Construction | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 51 | 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 | 720 | 0 | |
Current | 121,734 | 176,226 | |
Total Loans and Leases | 122,454 | 176,226 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Commercial | Lease Financing | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 720 | 0 | |
Commercial | Lease Financing | 60 to 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 | 7,306 | 8,992 | |
Total Past Due and Non-Accrual | 55,901 | 45,180 | |
Current | 6,721,164 | 6,423,802 | |
Total Loans and Leases | 6,777,065 | 6,468,982 | $ 6,030,449 |
Non-Accrual Loans and Leases that are Current | 1,841 | 1,968 | |
Consumer | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 29,611 | 23,927 | |
Consumer | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 10,578 | 5,704 | |
Consumer | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 8,406 | 6,557 | |
Consumer | Residential Mortgage | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 4,125 | 5,321 | |
Total Past Due and Non-Accrual | 14,131 | 13,724 | |
Current | 3,876,969 | 3,660,072 | |
Total Loans and Leases | 3,891,100 | 3,673,796 | |
Non-Accrual Loans and Leases that are Current | 1,429 | 1,203 | |
Consumer | Residential Mortgage | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 6,097 | 5,319 | |
Consumer | Residential Mortgage | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 2,070 | 638 | |
Consumer | Residential Mortgage | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 1,839 | 2,446 | |
Consumer | Home Equity | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 3,181 | 3,671 | |
Total Past Due and Non-Accrual | 13,535 | 11,259 | |
Current | 1,662,538 | 1,670,183 | |
Total Loans and Leases | 1,676,073 | 1,681,442 | |
Non-Accrual Loans and Leases that are Current | 412 | 765 | |
Consumer | Home Equity | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 3,949 | 3,323 | |
Consumer | Home Equity | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 2,280 | 1,581 | |
Consumer | Home Equity | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 4,125 | 2,684 | |
Consumer | Automobile | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 21,170 | 15,125 | |
Current | 699,116 | 643,008 | |
Total Loans and Leases | 720,286 | 658,133 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Consumer | Automobile | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 16,067 | 12,372 | |
Consumer | Automobile | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 4,154 | 2,240 | |
Consumer | Automobile | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 949 | 513 | |
Consumer | Other | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Non-Accrual | 0 | 0 | |
Total Past Due and Non-Accrual | 7,065 | 5,072 | |
Current | 482,541 | 450,539 | |
Total Loans and Leases | 489,606 | 455,611 | |
Non-Accrual Loans and Leases that are Current | 0 | 0 | |
Consumer | Other | 30 to 59 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 3,498 | 2,913 | |
Consumer | Other | 60 to 89 Days Past Due | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | 2,074 | 1,245 | |
Consumer | Other | Past Due 90 Days or More | |||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||
Days Past Due | $ 1,493 | $ 914 |
Loans and Leases and the Allo_7
Loans and Leases and the Allowance for Loan and Lease Losses (Impaired Loans) (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Impaired Loans Information: | |||
Impaired Loans with No Related Allowance, Recorded Investment | $ 15,182 | $ 8,620 | |
Impaired Loans with No Related Allowance, Unpaid Principal Balance | 20,298 | 12,120 | |
Impaired Loans with Related Allowance, Recorded Investment | 60,020 | 46,005 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 63,917 | 50,130 | |
Related Allowance for Loan Losses | 5,903 | 3,976 | |
Recorded Investment | 75,202 | 54,625 | |
Unpaid Principal Balance | 84,215 | 62,250 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 13,998 | 12,344 | |
Impaired Loans with No Related Allowance, Interest Income Recognized | 427 | 539 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 49,989 | 43,912 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 2,369 | 2,657 | |
Average Recorded Investment | 63,987 | 56,256 | $ 60,400 |
Interest Income Recognized | 2,796 | 3,196 | $ 2,800 |
Commercial | |||
Impaired Loans Information: | |||
Impaired Loans with No Related Allowance, Recorded Investment | 15,182 | 8,620 | |
Impaired Loans with No Related Allowance, Unpaid Principal Balance | 20,298 | 12,120 | |
Impaired Loans with Related Allowance, Recorded Investment | 20,260 | 3,678 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 20,543 | 3,921 | |
Related Allowance for Loan Losses | 2,657 | 222 | |
Recorded Investment | 35,442 | 12,298 | |
Unpaid Principal Balance | 40,841 | 16,041 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 13,998 | 12,344 | |
Impaired Loans with No Related Allowance, Interest Income Recognized | 427 | 539 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 8,798 | 2,098 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 107 | 125 | |
Average Recorded Investment | 22,796 | 14,442 | |
Interest Income Recognized | 534 | 664 | |
Commercial | Commercial and Industrial | |||
Impaired Loans Information: | |||
Impaired Loans with No Related Allowance, Recorded Investment | 3,334 | 4,587 | |
Impaired Loans with No Related Allowance, Unpaid Principal Balance | 3,334 | 4,587 | |
Impaired Loans with Related Allowance, Recorded Investment | 18,467 | 1,856 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 18,750 | 2,099 | |
Related Allowance for Loan Losses | 2,552 | 130 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 4,447 | 6,342 | |
Impaired Loans with No Related Allowance, Interest Income Recognized | 284 | 310 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 5,651 | 1,475 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 82 | 100 | |
Commercial | Commercial Mortgage | |||
Impaired Loans Information: | |||
Impaired Loans with No Related Allowance, Recorded Investment | 10,658 | 2,712 | |
Impaired Loans with No Related Allowance, Unpaid Principal Balance | 15,774 | 6,212 | |
Impaired Loans with Related Allowance, Recorded Investment | 1,793 | 1,822 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 1,793 | 1,822 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 8,308 | 4,642 | |
Impaired Loans with No Related Allowance, Interest Income Recognized | 62 | 160 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 3,147 | 623 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 25 | 25 | |
Commercial | Construction | |||
Impaired Loans Information: | |||
Impaired Loans with No Related Allowance, Recorded Investment | 1,190 | 1,321 | |
Impaired Loans with No Related Allowance, Unpaid Principal Balance | 1,190 | 1,321 | |
Impaired Loans with No Related Allowance, Average Recorded Investment | 1,243 | 1,360 | |
Impaired Loans with No Related Allowance, Interest Income Recognized | 81 | 69 | |
Consumer | |||
Impaired Loans Information: | |||
Impaired Loans with Related Allowance, Recorded Investment | 39,760 | 42,327 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 43,374 | 46,209 | |
Related Allowance for Loan Losses | 3,246 | 3,754 | |
Recorded Investment | 39,760 | 42,327 | |
Unpaid Principal Balance | 43,374 | 46,209 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 41,191 | 41,814 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 2,262 | 2,532 | |
Average Recorded Investment | 41,191 | 41,814 | |
Interest Income Recognized | 2,262 | 2,532 | |
Consumer | Residential Mortgage | |||
Impaired Loans Information: | |||
Impaired Loans with Related Allowance, Recorded Investment | 17,939 | 19,753 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 21,553 | 23,635 | |
Related Allowance for Loan Losses | 2,631 | 3,051 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 18,607 | 20,324 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 774 | 1,080 | |
Consumer | Home Equity | |||
Impaired Loans Information: | |||
Impaired Loans with Related Allowance, Recorded Investment | 3,085 | 3,359 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 3,085 | 3,359 | |
Related Allowance for Loan Losses | 355 | 350 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 3,272 | 2,676 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 156 | 121 | |
Consumer | Automobile | |||
Impaired Loans Information: | |||
Impaired Loans with Related Allowance, Recorded Investment | 17,086 | 17,117 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 17,086 | 17,117 | |
Related Allowance for Loan Losses | 212 | 296 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 17,529 | 16,190 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 1,179 | 1,116 | |
Consumer | Other | |||
Impaired Loans Information: | |||
Impaired Loans with Related Allowance, Recorded Investment | 1,650 | 2,098 | |
Impaired Loans with Related Allowance, Unpaid Principal Balance | 1,650 | 2,098 | |
Related Allowance for Loan Losses | 48 | 57 | |
Impaired Loans with Related Allowance, Average Recorded Investment | 1,783 | 2,624 | |
Impaired Loans with Related Allowance, Interest Income Recognized | 153 | 215 | |
Commercial Mortgage | |||
Impaired Loans Information: | |||
Related Allowance for Loan Losses | $ 105 | $ 92 |
Loans and Leases and the Allo_8
Loans and Leases and the Allowance for Loan and Lease Losses (Troubled Debt Restrucuring & Narrative) (Details 6) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | |
Loans and Leases and the Allowance for Loan and Lease Losses | ||
Loans modified in a TDR | $ 69,100 | $ 54,000 |
Available commitments under Revolving Credit Lines, Modified as TDR | $ 300 | $ 200 |
Loans Modified as a TDR | ||
Number of Contracts | contract | 441 | 532 |
Recorded Investment (as of period end) | $ 28,116 | $ 14,322 |
Increase in Allowance (as of period end) | $ 2,564 | $ 600 |
Commercial | ||
Loans Modified as a TDR | ||
Number of Contracts | contract | 9 | 13 |
Recorded Investment (as of period end) | $ 21,208 | $ 3,099 |
Increase in Allowance (as of period end) | $ 2,465 | $ 170 |
Commercial | Commercial and Industrial | ||
Loans Modified as a TDR | ||
Number of Contracts | contract | 8 | 12 |
Recorded Investment (as of period end) | $ 17,585 | $ 1,449 |
Increase in Allowance (as of period end) | $ 2,465 | $ 96 |
Commercial | Commercial Mortgage | ||
Loans Modified as a TDR | ||
Number of Contracts | contract | 1 | 1 |
Recorded Investment (as of period end) | $ 3,623 | $ 1,650 |
Increase in Allowance (as of period end) | $ 0 | $ 74 |
Consumer | ||
Loans Modified as a TDR | ||
Number of Contracts | contract | 432 | 519 |
Recorded Investment (as of period end) | $ 6,908 | $ 11,223 |
Increase in Allowance (as of period end) | $ 99 | $ 430 |
Consumer | Residential Mortgage | ||
Loans Modified as a TDR | ||
Number of Contracts | contract | 1 | 6 |
Recorded Investment (as of period end) | $ 57 | $ 1,458 |
Increase in Allowance (as of period end) | $ 0 | $ 200 |
Consumer | Home Equity | ||
Loans Modified as a TDR | ||
Number of Contracts | contract | 4 | 9 |
Recorded Investment (as of period end) | $ 368 | $ 1,438 |
Increase in Allowance (as of period end) | $ 9 | $ 77 |
Consumer | Automobile | ||
Loans Modified as a TDR | ||
Number of Contracts | contract | 332 | 366 |
Recorded Investment (as of period end) | $ 5,911 | $ 7,400 |
Increase in Allowance (as of period end) | $ 73 | $ 128 |
Consumer | Other | ||
Loans Modified as a TDR | ||
Number of Contracts | contract | 95 | 138 |
Recorded Investment (as of period end) | $ 572 | $ 927 |
Increase in Allowance (as of period end) | $ 17 | $ 25 |
Maximum [Member] | Residential Mortgage | ||
Loans and Leases and the Allowance for Loan and Lease Losses | ||
Period of time loan being fully amortized | 40 years | |
Maximum [Member] | Land Loans | ||
Loans and Leases and the Allowance for Loan and Lease Losses | ||
Period of time loan being fully amortized | 360 months | |
Extending balloon payments | 5 years |
Loans and Leases and the Allo_9
Loans and Leases and the Allowance for Loan and Lease Losses (Troubled Debt Restructuring's that Defaulted During the Period) (Details 7) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | |
Information related to loans modified as a TDR | ||
Number of Contracts | contract | 64 | 73 |
Recorded Investment (as of period end) | $ | $ 1,060 | $ 877 |
Commercial | ||
Information related to loans modified as a TDR | ||
Number of Contracts | contract | 0 | 1 |
Recorded Investment (as of period end) | $ | $ 0 | $ 3 |
Commercial | Commercial and Industrial | ||
Information related to loans modified as a TDR | ||
Number of Contracts | contract | 0 | 1 |
Recorded Investment (as of period end) | $ | $ 0 | $ 3 |
Consumer | ||
Information related to loans modified as a TDR | ||
Number of Contracts | contract | 64 | 72 |
Recorded Investment (as of period end) | $ | $ 1,060 | $ 874 |
Consumer | Residential Mortgage | ||
Information related to loans modified as a TDR | ||
Number of Contracts | contract | 1 | 0 |
Recorded Investment (as of period end) | $ | $ 132 | $ 0 |
Consumer | Home Equity | ||
Information related to loans modified as a TDR | ||
Number of Contracts | contract | 1 | 0 |
Recorded Investment (as of period end) | $ | $ 192 | $ 0 |
Consumer | Automobile | ||
Information related to loans modified as a TDR | ||
Number of Contracts | contract | 40 | 38 |
Recorded Investment (as of period end) | $ | $ 607 | $ 680 |
Consumer | Other | ||
Information related to loans modified as a TDR | ||
Number of Contracts | contract | 22 | 34 |
Recorded Investment (as of period end) | $ | $ 129 | $ 194 |
Minimum [Member] | ||
Information related to loans modified as a TDR | ||
Default period past due following modification of loans in TDR (in days) | 60 days |
Loans and Leases and the All_10
Loans and Leases and the Allowance for Loan and Lease Losses (Foreclosure Proceedings Narrative) (Details 8) $ in Millions | Dec. 31, 2019USD ($) |
Loans and Leases and Allowance for Loan and Lease Losses [Abstract] | |
Mortgage Loans in Process of Foreclosure, Amount | $ 1 |
Mortgage Servicing Rights (Narr
Mortgage Servicing Rights (Narrative) (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Transfers and Servicing of Financial Assets [Abstract] | |||
Residential Mortgage Loans Serviced for Third Parties | $ 3,100 | $ 2,900 | $ 2,900 |
Servicing income, including late and ancillary fees | $ 7.3 | $ 7.3 | $ 7.1 |
Mortgage Servicing Rights (Fair
Mortgage Servicing Rights (Fair value method rollforward) (Details 2) - Mortgage Servicing Rights - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in fair value of the mortgage servicing rights accounted for under the fair value measurement method | |||
Balance at Beginning of Year | $ 1,290 | $ 1,454 | $ 1,655 |
Changes in Fair Value: | |||
Due to Payoffs | (164) | (164) | (201) |
Total Changes in Fair Value of Mortgage Servicing Rights | (164) | (164) | (201) |
Balance at End of Year | $ 1,126 | $ 1,290 | $ 1,454 |
Mortgage Servicing Rights (Amor
Mortgage Servicing Rights (Amortization method rollforward) (Details 3) - Mortgage Servicing Rights - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Carrying Value of Mortgage Servicing Rights Accounted for Under the Amortization Method, Net of a Valuation Allowance | |||
Balance at beginning of Year | $ 23,020 | $ 23,168 | $ 22,008 |
Servicing Rights that Resulted From Asset Transfers | 4,485 | 2,470 | 3,976 |
Amortization | (3,609) | (2,618) | (2,816) |
Balance at end of Year | 23,896 | 23,020 | 23,168 |
Fair Value: | |||
Balance at Beginning of Year | 29,218 | 26,716 | 25,148 |
Balance at End of Year | $ 25,714 | $ 29,218 | $ 26,716 |
Mortgage Servicing Rights (Key
Mortgage Servicing Rights (Key assumptions) (Details 4) - Mortgage Servicing Rights | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Key assumptions used in estimating the fair value of mortgage servicing rights | ||
Weighted-Average Constant Prepayment Rate (as a percent) | 10.76% | 7.01% |
Weighted-Average Life (in years) | 6 years 2 months 12 days | 7 years 10 months 20 days |
Weighted-Average Note Rate (as a percent) | 3.99% | 4.06% |
Weighted-Average Discount Rate (as a percent) | 7.33% | 9.59% |
Mortgage Servicing Rights (Sens
Mortgage Servicing Rights (Sensitivity analysis) (Details 5) - Mortgage Servicing Rights - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Constant Prepayment Rate | ||
Decrease in fair value from 25 basis points ("bps") adverse change | $ (296) | $ (361) |
Decrease in fair value from 50 bps adverse change | (586) | (716) |
Discount Rate | ||
Decrease in fair value from 25 bps adverse change | (264) | (325) |
Decrease in fair value from 50 bps adverse change | $ (522) | $ (643) |
Premises and Equipment (Details
Premises and Equipment (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Premises and Equipment | |||
Cost | $ 500,488 | $ 466,199 | |
Accumulated Depreciation and Amortization | (312,100) | (314,362) | |
Net Book Value | 188,388 | 151,837 | |
Depreciation and amortization (including capital lease amortization) included in noninterest expense | 17,300 | 14,400 | $ 13,000 |
Premises | |||
Premises and Equipment | |||
Cost | 360,170 | 339,441 | |
Accumulated Depreciation and Amortization | (235,031) | (238,450) | |
Net Book Value | 125,139 | 100,991 | |
Impairment charge | 0 | 0 | $ 0 |
Equipment | |||
Premises and Equipment | |||
Cost | 133,725 | 120,165 | |
Accumulated Depreciation and Amortization | (72,852) | (71,767) | |
Net Book Value | 60,873 | 48,398 | |
Finance leases | |||
Premises and Equipment | |||
Cost | 6,593 | 6,593 | |
Accumulated Depreciation and Amortization | (4,217) | (4,145) | |
Net Book Value | $ 2,376 | $ 2,448 |
Other Assets (Details 1)
Other Assets (Details 1) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Components of Other Assets | ||
Federal Home Loan Bank and Federal Reserve Bank Stock | $ 34,093 | $ 35,858 |
Derivative Financial Instruments | 28,931 | 14,604 |
Low-Income Housing and Other Equity Investments | 84,618 | 85,860 |
Deferred Compensation Plan Assets | 41,464 | 31,871 |
Prepaid Expenses | 15,140 | 8,533 |
Accounts Receivable | 20,180 | 18,996 |
Other | 48,248 | 35,160 |
Total | $ 272,674 | $ 230,882 |
Time Deposits (Details 1)
Time Deposits (Details 1) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Time deposits classified according to the contractual maturities | ||
2020 | $ 1,425,438 | |
2021 | 272,921 | |
2022 | 60,676 | |
2023 | 27,487 | |
2024 | 10,641 | |
Thereafter | 5,268 | |
Total | 1,802,431 | $ 1,745,522 |
Time deposits with balances of $100,000 or more, classified according to the contractual maturities | ||
Three Months or Less | 545,570 | |
Over Three Months through Six Months | 253,868 | |
Over Six Months through Twelve Months | 477,384 | |
Over Twelve Months | 270,831 | |
Total | 1,547,653 | 1,500,000 |
Government entity deposits | $ 1,200,000 | $ 1,100,000 |
Borrowings (Short-term borrowin
Borrowings (Short-term borrowings) (Details 1) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term Borrowings | ||
Securities Sold Under Agreements to Repurchase | $ 604,306 | $ 504,296 |
Amounts Outstanding | 0 | 199 |
Securities Sold Under Agreements to Repurchase | ||
Short-term Borrowings | ||
Amounts Outstanding | $ 2,200 | $ 4,196 |
Weighted Average Interest Rate (as a percent) | 1.87% | 1.19% |
Long-term Repurchase Agreements with Government Entities | ||
Short-term Borrowings | ||
Securities Sold Under Agreements to Repurchase | $ 2,100 | $ 100 |
Long-term Repurchase Agreements with Private Institutions | ||
Short-term Borrowings | ||
Securities Sold Under Agreements to Repurchase | $ 600,000 | $ 500,000 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Securities sold under repurchase agreements | ||
Document Period End Date | Dec. 31, 2019 | |
Securities Sold Under Agreements to Repurchase | $ 604,306 | $ 504,296 |
Long-term Repurchase Agreements with Government Entities | ||
Securities sold under repurchase agreements | ||
Securities Sold Under Agreements to Repurchase | $ 2,100 | 100 |
Repurchase agreements, Weighted average interest rate (as a percent) | 1.09% | |
Long-term Repurchase Agreements with Private Institutions | ||
Securities sold under repurchase agreements | ||
Securities Sold Under Agreements to Repurchase | $ 600,000 | $ 500,000 |
Repurchase agreements, Weighted average interest rate (as a percent) | 2.68% | |
Repurchase Agreement Counterparty, Weighted Average Maturity of Agreements | 4 years | |
Repurchase Agreement Counterparty, Weighted Average Maturity of Agreements early termination | 3 years 4 months 24 days |
Other Debt (Details 1)
Other Debt (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Long-Term Debt | ||
Federal Home Loan Bank, Advances, Weighted Average Interest Rate (as a percent) | 2.42% | |
Total | $ 85,565 | $ 135,643 |
Maximum percentage of the total assets that can be borrowed from the FHLB by the entity | 45.00% | |
Federal Home Loan Bank Advance | ||
Long-Term Debt | ||
Other Debt | $ 75,000 | 125,000 |
Undrawn line of credit with the FHLB or FRB | 2,500,000 | |
Finance Lease Obligations | ||
Long-Term Debt | ||
Finance Lease Obligations | $ 10,565 | $ 10,643 |
Lease term (in years) | 60 years | |
Fixed lease payments through December 2022 | $ 800 | |
Federal Reserve Bank Advance | ||
Long-Term Debt | ||
Undrawn line of credit with the FHLB or FRB | $ 533,500 |
Other Debt (Excluding capital l
Other Debt (Excluding capital lease obligation, annual maturities) (Details 2) - Non-Recourse Debt and Federal Home Loan Bank Advance $ in Thousands | Dec. 31, 2019USD ($) |
Annual maturities of long term debt exclusive of capital lease obligations | |
2020 | $ 75,000 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total | $ 75,000 |
Shareholders' Equity (Capital)
Shareholders' Equity (Capital) (Details 1) $ / shares in Units, $ in Thousands | 2 Months Ended | 12 Months Ended | 222 Months Ended | |||
Feb. 14, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)Y$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2016USD ($) | |
Minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts [Line Items] | ||||||
Shareholders' Equity | $ 1,286,832 | $ 1,268,200 | $ 1,231,868 | $ 1,286,832 | $ 1,161,537 | |
Well Capitalized Minimum Common Equity Tier One Ratio (as a percent) | 6.50% | 6.50% | 6.50% | |||
Well Capitalized Minimum Tier 1 Capital Ratio (as a percent) | 8.00% | 8.00% | 8.00% | |||
Well Capitalized Minimum Total Capital Ratio (as a percent) | 10.00% | 10.00% | 10.00% | |||
Well Capitalized Minimum Tier 1 Leverage Ratio (as a percent) | 5.00% | 5.00% | 5.00% | |||
Dividends | ||||||
Number of prior calendar years considered for payment of dividends in excess of the sum of net income | Y | 2 | |||||
Common Stock Repurchase Program | ||||||
Number of shares of common stock repurchased | shares | 1,642,998 | 56,900,000 | ||||
Amount returned to shareholders on stock repurchase | $ 137,649 | $ 91,988 | $ 47,076 | $ 2,300,000 | ||
Average cost of shares repurchased (in dollars per share) | $ / shares | $ 81.98 | $ 40.38 | ||||
Treasury Stock Value Acquired Cost Method Share Repurchase Program | $ 134,700 | |||||
Parent [Member] | ||||||
Minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts [Line Items] | ||||||
Shareholders' Equity | 1,286,832 | 1,268,200 | $ 1,286,832 | |||
Common Equity Tier One Capital | 1,289,424 | 1,290,723 | 1,289,424 | |||
Tier 1 Capital | 1,289,424 | 1,290,723 | 1,289,424 | |||
Total Capital | $ 1,406,273 | $ 1,404,238 | $ 1,406,273 | |||
Common Equity Tier One Ratio | 12.18% | 13.07% | 12.18% | |||
Tier 1 Capital Ratio (as a percent) | 12.18% | 13.07% | 12.18% | |||
Total Capital Ratio (as a percent) | 13.28% | 14.21% | 13.28% | |||
Tier 1 Leverage Ratio (as a percent) | 7.25% | 7.60% | 7.25% | |||
Subsidiaries [Member] | ||||||
Minimum required capital amounts and ratios for well capitalized institutions and the actual capital amounts [Line Items] | ||||||
Shareholders' Equity | $ 1,229,775 | $ 1,195,132 | $ 1,229,775 | |||
Common Equity Tier One Capital | 1,243,939 | 1,229,227 | 1,243,939 | |||
Tier 1 Capital | 1,243,939 | 1,229,227 | 1,243,939 | |||
Total Capital | $ 1,360,788 | $ 1,342,742 | $ 1,360,788 | |||
Common Equity Tier One Ratio | 11.76% | 12.46% | 11.76% | |||
Tier 1 Capital Ratio (as a percent) | 11.76% | 12.46% | 11.76% | |||
Total Capital Ratio (as a percent) | 12.87% | 13.61% | 12.87% | |||
Tier 1 Leverage Ratio (as a percent) | 7.01% | 7.24% | 7.01% | |||
Subsequent Event | ||||||
Common Stock Repurchase Program | ||||||
Number of shares of common stock repurchased | shares | 114,358 | |||||
Amount returned to shareholders on stock repurchase | $ 10,600 | |||||
Average cost of shares repurchased (in dollars per share) | $ / shares | $ 92.63 |
Shareholders' Equity (AOCI tax
Shareholders' Equity (AOCI tax effect) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Comprehensive Income, Before Tax: | |||
Net Unrealized Gains (Losses) Arising During the Period | $ 30,169 | $ (11,051) | $ (5,263) |
(Gain) Loss on Sale | (152) | ||
Amortization of Unrealized Holding (Gains) Losses on HTM Securities | 833 | 2,164 | 1,982 |
Net Unrealized Gains (Losses) on Investment Securities | (30,850) | 8,887 | 3,281 |
Net Actuarial Gains (Losses) Arising During the Period | (5,046) | (4,468) | 884 |
Amortization of Net Actuarial Losses (Gains) | 1,598 | 1,835 | 1,382 |
Amortization of Prior Service Credit, before tax | (288) | (567) | (322) |
Defined Benefit Plans, Net | (3,736) | (3,200) | 1,944 |
Other Comprehensive Income (Loss) | 27,114 | (12,087) | (1,337) |
Other Comprehensive Income, Tax Effect: | |||
Net Unrealized Gains Arising During the Period | (8,001) | 2,931 | 2,078 |
(Gain) Loss on Sale | (49) | ||
Amortization of Unrealized Holding (Gains) Losses on HTM Securities | 221 | 569 | 783 |
Net Unrealized Gains (Losses) on Investment Securities | (8,173) | 2,362 | 1,295 |
Net Actuarial Gains (Losses) Arising During the Period | (1,337) | (1,184) | 349 |
Amortization of Net Actuarial Losses (Gains) | 423 | 460 | 545 |
Amortization of Prior Service Credit | (76) | (150) | (127) |
Defined Benefit Plans, Net | (990) | (874) | 767 |
Other Comprehensive Income (Loss) | 7,183 | (3,236) | (528) |
Other Comprehensive Income, Net of Tax: | |||
Net Unrealized Gains (Losses) Arising During the Period | 22,168 | (8,120) | (3,185) |
(Gain) Loss on Sale | (103) | ||
Amortization of Unrealized Holding (Gains) Losses on HTM Securities after Tax | 612 | 1,595 | 1,199 |
Net Unrealized Gains (Losses) on Investment Securities | 22,677 | (6,525) | (1,986) |
Net Actuarial Losses Arising During the Period | (3,709) | (3,284) | 535 |
Amortization of Net Actuarial Losses (Gains) | 1,175 | 1,375 | 837 |
Amortization of Prior Service Credit | (212) | (417) | (195) |
Defined Benefit Plans, Net | (2,746) | (2,326) | 1,177 |
Other Comprehensive Income (Loss) | $ 19,931 | $ (8,851) | $ (809) |
Shareholders' Equity (AOCI roll
Shareholders' Equity (AOCI rollforward) (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 10, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | $ 1,268,200 | $ 1,231,868 | $ 1,161,537 | |
Other Comprehensive Income (Loss) | 19,931 | (8,851) | (809) | |
Balance at End of Period | 1,286,832 | 1,268,200 | 1,231,868 | |
Defined Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | (36,010) | (27,715) | (28,892) | |
Other Comprehensive Income (Loss) Before Reclassification | (3,709) | (3,284) | 535 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | |||
Amounts Reclassified from Accumulated Other Comprehensive Income | 963 | 958 | 642 | |
Other Comprehensive Income (Loss) | (2,746) | (2,326) | 1,177 | |
Reclassification of the Income Tax Effect of the Tax Reform from AOCI to RE | (5,969) | |||
Balance at End of Period | (38,756) | (36,010) | (27,715) | |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | (51,043) | (34,715) | (33,906) | |
Other Comprehensive Income (Loss) Before Reclassification | 18,459 | (11,404) | (2,650) | |
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | |||
Amounts Reclassified from Accumulated Other Comprehensive Income | 1,472 | 2,553 | 1,841 | |
Other Comprehensive Income (Loss) | 19,931 | (8,851) | (809) | |
Reclassification of the Income Tax Effect of the Tax Reform from AOCI to RE | (7,477) | |||
Balance at End of Period | (31,112) | (51,043) | (34,715) | |
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 | (10,447) | (1,915) | 1,270 | |
Other Comprehensive Income (Loss) Before Reclassification | 22,168 | (8,120) | (3,185) | |
Cumulative Effect of New Accounting Principle in Period of Adoption | (3,259) | |||
Amounts Reclassified from Accumulated Other Comprehensive Income | (103) | 0 | 0 | |
Other Comprehensive Income (Loss) | 18,806 | (8,120) | (3,185) | |
Reclassification of the Income Tax Effect of the Tax Reform from AOCI to RE | (412) | |||
Balance at End of Period | 8,359 | (10,447) | (1,915) | |
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 | (4,586) | (5,085) | (6,284) | |
Other Comprehensive Income (Loss) Before Reclassification | 0 | 0 | 0 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 3,259 | |||
Amounts Reclassified from Accumulated Other Comprehensive Income | 612 | 1,595 | 1,199 | |
Other Comprehensive Income (Loss) | 3,871 | 1,595 | 1,199 | |
Reclassification of the Income Tax Effect of the Tax Reform from AOCI to RE | (1,096) | |||
Balance at End of Period | $ (715) | $ (4,586) | $ (5,085) |
Shareholders' Equity (Income st
Shareholders' Equity (Income statement reclass) (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Provision for Income Taxes | $ (59,913) | $ (50,624) | $ (83,392) |
Salaries and Benefits | (216,106) | (213,208) | (203,729) |
Net Income | 225,913 | 219,602 | 184,672 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Income | (1,472) | (2,553) | (1,841) |
Amortization of Unrealized Gains(Losses) of Investment Securities Transferred from AFS to HTM [Member] | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Investment Income, Interest | (833) | (2,164) | (1,982) |
Provision for Income Taxes | 221 | 569 | 783 |
Net Income | (612) | (1,595) | (1,199) |
Sale of Investment Securities Available-for-Sale [Member] | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Provision for Income Taxes | (49) | 0 | 0 |
Net Income | 103 | 0 | 0 |
Available-for-sale Securities, Gross Realized Gain (Loss) | 152 | 0 | 0 |
Amortization of Defined Benefit Pension Items | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Provision for Income Taxes | 347 | 310 | 418 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (1,310) | (1,268) | (1,060) |
Net Income | (963) | (958) | (642) |
Prior Service Credit | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Salaries and Benefits | 288 | 567 | 322 |
Net Actuarial Losses | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Salaries and Benefits | $ (1,598) | $ (1,835) | $ (1,382) |
Earnings Per Share (Details 1)
Earnings Per Share (Details 1) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Denominator for Basic Earnings Per Share (in shares) | 40,384,328 | 41,714,770 | 42,280,931 |
Dilutive Effect of Equity Based Awards (in shares) | 265,242 | 284,629 | 326,126 |
Denominator for Diluted Earnings Per Share (in shares) | 40,649,570 | 41,999,399 | 42,607,057 |
Antidilutive Stock Options and Restricted Stock Outstanding (in shares) | 4,905 | 0 | 0 |
Business Segments (Details 1)
Business Segments (Details 1) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)atmbranch | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Business segment financial information | |||
Federal and State Effective Tax Rate used for Segment Reporting | 26.00% | ||
Net Interest Income | $ 497,715 | $ 486,352 | $ 457,238 |
Provision for Credit Losses | 16,000 | 13,425 | 16,900 |
Net Interest Income After Provision for Credit Losses | 481,715 | 472,927 | 440,338 |
Noninterest Income | 183,338 | 168,923 | 185,417 |
Noninterest Expense | (379,227) | (371,624) | (357,691) |
Income Before Provision for Income Taxes | 285,826 | 270,226 | 268,064 |
Provision for Income Taxes | (59,913) | (50,624) | (83,392) |
Net Income | 225,913 | 219,602 | 184,672 |
Total Assets | $ 18,095,496 | 17,143,974 | 17,089,052 |
Retail Banking | |||
Business segment financial information | |||
Number of branch locations through which products and services are delivered to customers | branch | 68 | ||
Number of ATM's through which products and services are delivered to customers | atm | 387 | ||
Net Interest Income | $ 266,429 | 264,459 | 264,041 |
Provision for Credit Losses | 11,670 | 14,898 | 14,008 |
Net Interest Income After Provision for Credit Losses | 254,759 | 249,561 | 250,033 |
Noninterest Income | 86,682 | 79,004 | 85,042 |
Noninterest Expense | (216,688) | (211,761) | (209,807) |
Income Before Provision for Income Taxes | 124,753 | 116,804 | 125,268 |
Provision for Income Taxes | (30,725) | (29,172) | (44,545) |
Net Income | 94,028 | 87,632 | 80,723 |
Total Assets | 6,732,811 | 6,365,263 | 5,936,568 |
Commercial Banking | |||
Business segment financial information | |||
Net Interest Income | 185,259 | 179,577 | 171,038 |
Provision for Credit Losses | 976 | (760) | (160) |
Net Interest Income After Provision for Credit Losses | 184,283 | 180,337 | 171,198 |
Noninterest Income | 33,362 | 23,733 | 21,670 |
Noninterest Expense | (84,616) | (81,344) | (74,209) |
Income Before Provision for Income Taxes | 133,029 | 122,726 | 118,659 |
Provision for Income Taxes | (28,852) | (28,496) | (41,797) |
Net Income | 104,177 | 94,230 | 76,862 |
Total Assets | 4,254,261 | 3,958,523 | 3,742,991 |
Investment Services | |||
Business segment financial information | |||
Net Interest Income | 39,374 | 41,222 | 29,693 |
Provision for Credit Losses | 15 | (61) | (21) |
Net Interest Income After Provision for Credit Losses | 39,359 | 41,283 | 29,714 |
Noninterest Income | 55,696 | 55,338 | 57,105 |
Noninterest Expense | (64,974) | (65,847) | (61,674) |
Income Before Provision for Income Taxes | 30,081 | 30,774 | 25,145 |
Provision for Income Taxes | (7,929) | (8,113) | (9,303) |
Net Income | 22,152 | 22,661 | 15,842 |
Total Assets | 321,700 | 349,832 | 336,455 |
Treasury and Other | |||
Business segment financial information | |||
Net Interest Income | 6,653 | 1,094 | (7,534) |
Provision for Credit Losses | 3,339 | (652) | 3,073 |
Net Interest Income After Provision for Credit Losses | 3,314 | 1,746 | (10,607) |
Noninterest Income | 7,598 | 10,848 | 21,600 |
Noninterest Expense | (12,949) | (12,672) | (12,001) |
Income Before Provision for Income Taxes | (2,037) | (78) | (1,008) |
Provision for Income Taxes | 7,593 | 15,157 | 12,253 |
Net Income | 5,556 | 15,079 | 11,245 |
Total Assets | $ 6,786,724 | $ 6,470,356 | $ 7,073,038 |
Employee Benefits (Defined cont
Employee Benefits (Defined contribution plans) (Details1 ) | 12 Months Ended | ||
Dec. 31, 2019USD ($)components | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Defined Contribution Plans | |||
Number of company contribution components, Retirement Savings Plan | components | 3 | ||
Fixed percentage of employer's contribution based on eligible compensation | 3.00% | ||
Employee contribution limit per calendar year (as a percent of compensation) | 50.00% | ||
Employee's contribution matched by employer (in dollars) | $ 1 | ||
Employer match of employee contributions upto 2% of eligible compensation | $ 1.25 | ||
Percentage of eligible compensation, matched $1.25 for by employer for each dollar amount contributed by participants | 2.00% | ||
Employer match of employee contributions over 2% upto 5% of eligible compensation | $ 0.50 | ||
Percentage of eligible compensation, matched $0.50 for by employer for each dollar amount contributed by participants, low end of range | 2.00% | ||
Percentage of eligible compensation, matched $0.50 for by employer for each dollar amount contributed by participants, high end of range | 5.00% | ||
Total expense for all components of the company's defined contribution plans | $ 15,200,000 | $ 14,500,000 | $ 13,500,000 |
Employee Benefits (Defined bene
Employee Benefits (Defined benefit and postretirement benefit plans) (Details 2) | 12 Months Ended | ||
Dec. 31, 2019USD ($)planY | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Pension Benefits | |||
Employee benefits | |||
Number of defined benefit plans | plan | 2 | ||
Reconciliation of changes in benefit obligations | |||
Benefit Obligation at Beginning of Year | $ 102,662,000 | $ 110,080,000 | |
Service Cost | 0 | 0 | $ 0 |
Interest Cost | 4,401,000 | 4,193,000 | 4,665,000 |
Plan Amendment | 0 | 0 | |
Actuarial Losses (Gains) | (10,359,000) | 5,031,000 | |
Employer Benefits Paid | 6,785,000 | 6,580,000 | |
Benefit Obligation at End of Year | 110,637,000 | 102,662,000 | 110,080,000 |
Reconciliation of changes in fair value of plan assets | |||
Fair Value of Plan Assets at Beginning of Year | 85,553,000 | 96,908,000 | |
Actual Return on Plan Assets | 14,400,000 | (5,246,000) | |
Employer Contributions | 470,000 | 471,000 | |
Employer Benefits Paid | 6,785,000 | 6,580,000 | |
Fair Value of Plan Assets at End of Year | 93,638,000 | 85,553,000 | 96,908,000 |
Funded Status at End of Year | (16,999,000) | (17,109,000) | |
Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Net Actuarial Gains (Losses) | 41,404,000 | 42,127,000 | |
Prior Service Credit | 0 | 0 | |
Total Amounts Recognized in Accumulated Other Comprehensive Income, Net of Tax | (41,404,000) | $ (42,127,000) | |
Pension Benefits | Excess retirement Plan | |||
Employee benefits | |||
Accumulated benefit obligation | $ 3,600,000 | ||
Postretirement Benefits | |||
Employee benefits | |||
Health Care Cost Trend Rate Assumed, Next Fiscal Year | 5.70% | 6.00% | |
Retirees' age and above which Medicare supplemental plan subsidy is provided (in years) | Y | 65 | ||
Limit on annual credit provided in HRA to eligible employees | $ 1,200 | ||
Reconciliation of changes in benefit obligations | |||
Benefit Obligation at Beginning of Year | 23,452,000 | $ 24,206,000 | |
Service Cost | 455,000 | 457,000 | 453,000 |
Interest Cost | 1,025,000 | 936,000 | 1,093,000 |
Plan Amendment | 0 | 0 | |
Actuarial Losses (Gains) | (4,095,000) | 869,000 | |
Employer Benefits Paid | 1,456,000 | 1,278,000 | |
Benefit Obligation at End of Year | 27,571,000 | 23,452,000 | 24,206,000 |
Reconciliation of changes in fair value of plan assets | |||
Fair Value of Plan Assets at Beginning of Year | 0 | 0 | |
Actual Return on Plan Assets | 0 | 0 | |
Employer Contributions | 1,456,000 | 1,278,000 | |
Employer Benefits Paid | 1,456,000 | 1,278,000 | |
Fair Value of Plan Assets at End of Year | 0 | 0 | $ 0 |
Funded Status at End of Year | (27,571,000) | (23,452,000) | |
Participants contributions | 700,000 | 600,000 | |
Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Net Actuarial Gains (Losses) | (1,003,000) | (4,261,000) | |
Prior Service Credit | 1,645,000 | 1,856,000 | |
Total Amounts Recognized in Accumulated Other Comprehensive Income, Net of Tax | 2,648,000 | 6,117,000 | |
Other Pension Plan [Member] | |||
Reconciliation of changes in benefit obligations | |||
Actuarial Losses (Gains) | (10,800,000) | 5,400,000 | |
Postemployment Retirement Benefits [Member] | |||
Reconciliation of changes in benefit obligations | |||
Actuarial Losses (Gains) | $ (3,400,000) | $ 1,600,000 |
Employee Benefits (Components f
Employee Benefits (Components fo net Periodic benefit cost) (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Net periodic benefit cost for pension plans and the postretirement benefit plan | |||
Service Cost | $ 0 | $ 0 | $ 0 |
Interest Cost | 4,401 | 4,193 | 4,665 |
Expected Return on Plan Assets | (4,993) | (5,122) | (5,011) |
Amortization of Prior Service Credit | 0 | 0 | 0 |
Amortization of Net Actuarial Losses (Gains) | 1,937 | 2,099 | 1,817 |
Net Periodic Benefit Cost | $ 1,345 | $ 1,170 | $ 1,471 |
Weighted average assumptions used to determine the benefit obligations | |||
Discount Rate (as a percent) | 3.36% | 4.41% | |
Weighted average assumptions used to determine the net periodic benefit cost | |||
Discount rate (as a percent) | 4.41% | 3.90% | 4.45% |
Expected Long-Term Rate of Return on Plan Assets (as a percent) | 5.75% | 5.75% | 5.75% |
Health Care Cost Trend Rate (as a percent) | 0.00% | 0.00% | 0.00% |
A one percent change in the health care cost trend rate assumption impact on cost | |||
Expected future employer contributions, next fiscal year | $ 400 | ||
Expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter | |||
2019 | 7,073 | ||
2020 | 7,215 | ||
2021 | 7,229 | ||
2022 | 7,238 | ||
2023 | 7,240 | ||
Years 2024-2028 | 35,104 | ||
Postretirement Benefits | |||
Net periodic benefit cost for pension plans and the postretirement benefit plan | |||
Service Cost | 455 | $ 457 | $ 453 |
Interest Cost | 1,025 | 936 | 1,093 |
Expected Return on Plan Assets | 0 | 0 | 0 |
Amortization of Prior Service Credit | (288) | (567) | (322) |
Amortization of Net Actuarial Losses (Gains) | (339) | (264) | (435) |
Net Periodic Benefit Cost | $ 853 | $ 562 | $ 789 |
Weighted average assumptions used to determine the benefit obligations | |||
Discount Rate (as a percent) | 3.42% | 4.48% | |
Health Care Cost Trend Rate Assumed, Next Fiscal Year | 5.70% | 6.00% | |
Ultimate health care cost trend rate (as a percent) | 4.50% | ||
Weighted average assumptions used to determine the net periodic benefit cost | |||
Discount rate (as a percent) | 4.48% | 3.96% | 4.57% |
Expected Long-Term Rate of Return on Plan Assets (as a percent) | 0.00% | 0.00% | 0.00% |
Health Care Cost Trend Rate (as a percent) | 6.00% | 6.30% | 6.50% |
A one percent change in the health care cost trend rate assumption impact on cost | |||
Expected future employer contributions, next fiscal year | $ 1,000 | ||
Expected benefits to be paid in each of the next five years and in the aggregate for the five years thereafter | |||
2019 | 1,027 | ||
2020 | 1,064 | ||
2021 | 1,146 | ||
2022 | 1,224 | ||
2023 | 1,332 | ||
Years 2024-2028 | $ 8,612 |
Employee Benefits (Retirement p
Employee Benefits (Retirement plan assets) (Details 4) | 12 Months Ended |
Dec. 31, 2019D | |
Asset allocation guidelines | |
Effect of market fluctuations in cash flow on target allocation limits (as a percent) | 5.00% |
Period during which asset allocation is expected to conform to range limits (in days) | 90 |
S&P 500 Index | |
Defined benefit pension plan disclosure | |
Performance benchmark (as a percent) | 36.00% |
MSCI EAFE Index | |
Defined benefit pension plan disclosure | |
Performance benchmark (as a percent) | 24.00% |
Barclays Capital Aggregate Bond Index | |
Defined benefit pension plan disclosure | |
Performance benchmark (as a percent) | 40.00% |
Equity Securities | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 60.00% |
Fixed Income Securities | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 40.00% |
Minimum [Member] | |
Asset allocation guidelines | |
Fixed income securities, percentage of variable component in strategic targets (as a percent) | 10.00% |
Minimum [Member] | Equity Securities, Domestic | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 50.00% |
Minimum [Member] | Equity Securities, International | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 0.00% |
Minimum [Member] | Cash | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 0.00% |
Maximum [Member] | |
Asset allocation guidelines | |
Fixed income securities, percentage of variable component in strategic targets (as a percent) | 20.00% |
Maximum [Member] | Equity Securities, Domestic | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 100.00% |
Maximum [Member] | Equity Securities, International | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 50.00% |
Maximum [Member] | Cash | |
Defined benefit pension plan disclosure | |
Target plan asset allocations | 20.00% |
Employee Benefits (Fair values
Employee Benefits (Fair values of retirement plan assets) (Details 5) - Pension Benefits - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined benefit pension plan disclosure | |||
Fair value of plan assets | $ 93,638 | $ 85,553 | $ 96,908 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 93,638 | ||
Cash | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 1,269 | 726 | |
Cash | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 1,269 | ||
Large Cap [Member] | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 1,731 | 1,593 | |
Large Cap [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 1,731 | ||
Equity Security - Mutual Funds: Mixed-Cap | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 29,336 | 25,298 | |
Equity Security - Mutual Funds: Mixed-Cap | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 29,336 | ||
Equity Security - Mutual Funds: International | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 23,961 | 21,621 | |
Equity Security - Mutual Funds: International | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 23,961 | ||
Equity Security - Mutual Funds: Emerging Market | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 2,342 | 2,150 | |
Equity Security - Mutual Funds: Emerging Market | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 2,342 | ||
Fixed Income - Mutual Funds | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | 34,999 | $ 34,165 | |
Fixed Income - Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined benefit pension plan disclosure | |||
Fair value of plan assets | $ 34,999 |
Share-Based Compensation (Detai
Share-Based Compensation (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation [Line Items] | |||
Total shares authorized | 2,100,000 | ||
Shares available for future grants of stock options or restricted stock | 1,700,000 | ||
Compensation Expense | $ 8,338 | $ 8,146 | $ 7,369 |
Income Tax Benefit | $ 2,210 | $ 2,160 | 2,910 |
Stock Options [Roll Forward] | |||
Outstanding at the beginning of the period (in shares) | 263,888 | ||
Exercised (in shares) | (25,164) | ||
Forfeited (in shares) | (1,666) | ||
Outstanding at the end of the period (in shares) | 237,058 | 263,888 | |
Vested and Exercisable at the end of the period (in shares) | 237,058 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 45.27 | ||
Exercised (in dollars per share) | 43.74 | ||
Forfeited (in dollars per share) | 47.72 | ||
Outstanding at the end of the period (in dollars per share) | 45.44 | $ 45.27 | |
Vested and Exercisable at the end of period (in dollars per share) | $ 45.44 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding at the end of the period (in years) | 2 years | ||
Vested and Exercisable at the end of period (in years) | 2 years | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the period | $ 11,787 | ||
Vested and Exercisable at the end of the period | 11,787 | ||
Stock options activity | |||
Intrinsic Value of Stock Options Exercised | 1,106 | $ 1,634 | 5,991 |
Cash Received from Stock Options Exercised | 1,473 | 1,791 | 7,502 |
Share-based Payment Arrangement, Exercise of Option, Tax Benefit | $ 727 | $ 240 | $ 2,003 |
Stock Options | |||
Share-based Compensation [Line Items] | |||
Expiration period | 10 years | ||
Restricted Stock | |||
Restricted Stock | |||
Unrecognized compensation cost related to unvested restricted stock | $ 11,000 | ||
Weighted average period during which unrecognized compensation cost is expected to be recognized (in years) | 1 year 9 months 21 days | ||
Number of Shares | |||
Unvested at the beginning of the period (in shares) | 314,487 | 320,103 | 270,523 |
Granted (in shares) | 130,093 | 120,173 | 124,460 |
Vested (in shares) | (107,759) | (110,231) | (52,822) |
Forfeited (in shares) | (26,872) | (15,558) | (22,058) |
Unvested at the end of the period (in shares) | 309,949 | 314,487 | 320,103 |
Weighted Average Grant Date Fair Value | |||
Unvested at the beginning of the period (in dollars per share) | $ 78.17 | $ 69.36 | $ 60.58 |
Granted (in dollars per share) | 82.82 | 83.87 | 84.53 |
Vested (in dollars per share) | 66.46 | 59.41 | 60.06 |
Forfeited (in dollars per share) | 83.34 | 73.82 | 69.46 |
Unvested at the end of the period (in dollars per share) | $ 83.75 | $ 78.17 | $ 69.36 |
Grant Date Fair Value of Restricted Stock that Vested During the Year | |||
Vested (in dollars) | $ 8,910 | $ 9,081 | $ 4,493 |
Service-Based Restricted Stock | |||
Number of Shares | |||
Unvested at the end of the period (in shares) | 43,310 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation [Line Items] | |||
Compensation Expense | $ 1,000 | $ 600 | $ 3,400 |
Number of Shares | |||
Unvested at the beginning of the period (in shares) | 52,064 | 116,489 | 154,832 |
Vested (in shares) | (52,064) | (62,252) | (29,281) |
Forfeited (in shares) | (2,173) | (9,062) | |
Unvested at the end of the period (in shares) | 0 | 52,064 | 116,489 |
Weighted Average Grant Date Fair Value | |||
Unvested at the beginning of the period (in dollars per share) | $ 63.92 | $ 60.22 | $ 59.04 |
Vested (in dollars per share) | 82.23 | 57 | 58.74 |
Forfeited (in dollars per share) | 63.92 | 60.17 | |
Unvested at the end of the period (in dollars per share) | $ 0 | $ 63.92 | $ 60.22 |
Grant Date Fair Value of Restricted Stock that Vested During the Year | |||
Vested (in dollars) | $ 4,311 | $ 5,127 | $ 2,516 |
Maximum [Member] | Restricted Stock | |||
Share-based Compensation [Line Items] | |||
Vesting period (in years) | 4 years | ||
Maximum [Member] | Restricted Stock Units (RSUs) | |||
Share-based Compensation [Line Items] | |||
Vesting period (in years) | 4 years | ||
Minimum [Member] | Restricted Stock | |||
Share-based Compensation [Line Items] | |||
Vesting period (in years) | 1 year | ||
Minimum [Member] | Restricted Stock Units (RSUs) | |||
Share-based Compensation [Line Items] | |||
Vesting period (in years) | 3 years |
Income Taxes (Deferred tax liab
Income Taxes (Deferred tax liabilities & assets and reconciliation of statutory federal income taxes to the company's effective tax rate) (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 60,902 | $ 45,464 | $ 73,176 |
State | 14,426 | 11,434 | 6,039 |
Total Current | 75,328 | 56,898 | 79,215 |
Deferred: | |||
Federal | (9,630) | (2,172) | 5,042 |
State | (5,785) | (4,102) | (865) |
Total Deferred | (15,415) | (6,274) | 4,177 |
Provision for Income Taxes | 59,913 | 50,624 | 83,392 |
Net tax charge/(benefit) recorded directly to consolidated shareholders' equity | 7,100 | 3,200 | $ 500 |
Deferred Tax Liabilities: | |||
Accelerated Depreciation | 4,064 | 2,864 | |
Accrued Pension Cost | (11,270) | (11,270) | |
Federal Home Loan Bank Stock | (3,416) | (3,416) | |
Lease Transactions | (48,487) | (53,230) | |
Operating Lease Liabilities | (26,731) | 0 | |
Energy Tax Credits | (2,370) | (5,274) | |
Deferred Tax Liabilities, Unrealized Gains on Trading Securities | (2,751) | 0 | |
Deferred Tax Liabilities, Investment In Variable Interest Entities | (3,783) | (4,574) | |
Deferred Loan Fees | (6,498) | (6,688) | |
Originated Mortgage Servicing Rights | (6,840) | (6,548) | |
Other | (1,597) | (1,420) | |
Gross Deferred Tax Liabilities | (117,807) | (95,284) | |
Deferred Tax Assets: | |||
Allowance for Loan Losses | 30,951 | 30,045 | |
Minimum Pension Liability | 13,980 | 12,989 | |
Accrued Expenses | 18,159 | 14,805 | |
Postretirement Benefit Obligations | 8,130 | 8,396 | |
Capital Lease Expenses | 2,171 | 2,172 | |
Restricted Stock | 4,369 | 5,178 | |
Operating Lease, Right-of-Use Asset | 28,685 | 0 | |
Deferred Tax Assets, Net Unrealized Losses on Investment Securities | 0 | 5,421 | |
Deductible State and Local Taxes | 3,558 | 3,242 | |
Qualified Affordable Housing Project Investments, Commitment Payments, Remainder of Fiscal Year | 2,157 | 805 | |
Other | 6,236 | 4,244 | |
Gross Deferred Tax Assets Before Valuation Allowance | 118,396 | 87,297 | |
Valuation Allowance | (2,460) | (1,102) | |
Gross Deferred Tax Assets After Valuation Allowance | 115,936 | 86,195 | |
Net Deferred Tax Liabilities | (1,871) | (9,089) | |
Tax Cuts and Jobs Act of 2017 additional tax expense | $ 3,600 | ||
Base year reserves included in retained earnings | 18,200 | ||
Unrecognized deferred federal income tax liability | $ 4,800 | ||
Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Tax Rate | |||
Statutory Federal Income Tax Rate (as a percent) | 21.00% | 21.00% | 35.00% |
Increase (Decrease) in Income Tax Rate Resulting From: | |||
State Taxes, Net of Federal Income Tax (as a percent) | 2.53% | 2.29% | 1.50% |
Tax Reserve Adjustments (as a percent) | (0.03%) | 0.00% | 0.04% |
Leveraged Leases (as a percent) | 0.60% | 0.22% | (1.18%) |
Low-Income Housing Investments (as a percent) | (0.84%) | (1.04%) | (1.03%) |
Bank-Owned Life Insurance (as a percent) | (0.51%) | (0.55%) | (0.85%) |
Tax-Exempt Income (as a percent) | (0.53%) | (1.29%) | (2.57%) |
Effective Income Tax Rate Reconciliation, Tax Expense (Benefit), Share-based Payment Arrangement, Percent | 0.22% | 0.34% | 0.83% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Leases, Percent | (1.54%) | (0.83%) | (0.03%) |
Tax Reform Effects | 0.00% | (0.75%) | 1.25% |
Other (as a percent) | 0.50% | 0.02% | (0.19%) |
Effective Tax Rate (as a percent) | 20.96% | 18.73% | 31.11% |
Income Taxes (Unrecognized tax
Income Taxes (Unrecognized tax benefits) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of liability for Unrecognized Tax Benefits | |||
Unrecognized Tax Benefits at the Beginning of Year | $ 5,541 | $ 5,292 | $ 6,574 |
Gross Increases, Related to Tax Positions Taken in a Prior Period | 673 | 157 | 273 |
Gross Increases, Related to Current Period Tax Positions | 715 | 885 | 1,124 |
Lapse of Statute of Limitations | (809) | (793) | (2,679) |
Unrecognized Tax Benefits at the End of Year | 6,120 | 5,541 | $ 5,292 |
Amount related to unrecognized tax benefits that if reversed would impact effective tax rate | 6,100 | 5,500 | |
Interest and penalties expense/(benefit) related to the liability for unrecognized tax benefits | 500 | 100 | |
Accrued interest and penalties related to the liability for unrecognized tax benefits | $ 1,400 | $ 900 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Notional and fair value amounts) (Details 1) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Interest Rate Lock Commitments | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Derivative, Notional Amount | $ 48,677 | $ 33,133 |
Fair Value | 1,280 | 871 |
Forward Commitments | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Derivative, Notional Amount | 82,735 | 34,102 |
Fair Value | (182) | (352) |
Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Derivative, Notional Amount | 802,389 | 505,034 |
Fair Value | 26,070 | (2,537) |
Interest Rate Swap Agreements Pay Fixed/Receive Variable Swaps | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Derivative, Notional Amount | 802,389 | 505,034 |
Fair Value | (4,777) | 6,082 |
Foreign Exchange Contracts | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Derivative, Notional Amount | 85,499 | 55,663 |
Fair Value | 163 | 793 |
Visa Conversion Rate Swap Agreement [Member] | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Derivative, Notional Amount | 114,499 | 80,746 |
Fair Value | $ 0 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Assets and liabilities) (Details 2) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | $ 28,931 | $ 14,604 |
Liability Derivatives | 6,377 | 9,747 |
Interest Rate Lock Commitments | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | 1,280 | 877 |
Liability Derivatives | 0 | 6 |
Forward Commitments | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | 23 | 4 |
Liability Derivatives | 205 | 356 |
Interest Rate Swap Agreements | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | 27,344 | 12,915 |
Liability Derivatives | 6,051 | 9,370 |
Foreign Exchange Contracts | ||
Derivative Financial Instruments Not Designated as Hedging Instruments | ||
Asset Derivatives | 284 | 808 |
Liability Derivatives | $ 121 | $ 15 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Net gains or losses) (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gains (Losses) Recognized in the Statements of Income | $ 19,455 | $ 8,353 | $ 8,362 |
Interest Rate Lock Commitments | Mortgage Banking Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gains (Losses) Recognized in the Statements of Income | 12,185 | 3,534 | 5,643 |
Forward Commitments | Mortgage Banking Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gains (Losses) Recognized in the Statements of Income | (2,340) | 821 | (1,275) |
Interest Rate Swap Agreements | Other Noninterest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gains (Losses) Recognized in the Statements of Income | 7,172 | 1,835 | 698 |
Foreign Exchange Contracts | Other Noninterest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gains (Losses) Recognized in the Statements of Income | 2,891 | 3,163 | 3,296 |
Visa Conversion Rate Swap Agreement [Member] | Gain (Loss) on Investments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gains (Losses) Recognized in the Statements of Income | $ (453) | $ (1,000) | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Conversion rate swap agreement narrative) (Details 4) | Jun. 28, 2018 | Jun. 27, 2018 | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Derivative [Line Items] | |||||
Liability Derivatives | $ 6,377,000 | $ 9,747,000 | |||
Visa Class B Restricted Securities | |||||
Derivative [Line Items] | |||||
Debt Instrument, Convertible, Conversion Ratio | 1.6298 | 1.6483 | |||
Visa Conversion Rate Swap Agreement [Member] | |||||
Derivative [Line Items] | |||||
Liability Derivatives | $ 1,000,000 | ||||
Visa Class B Restricted Securities | |||||
Derivative [Line Items] | |||||
Liability Derivatives | $ 0 |
Affordable Housing Projects T_3
Affordable Housing Projects Tax Credit Partnerships (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Low Income Housing Investment Basis Adjustment, Provisional Income Tax (Expense) Benefit | $ 2,000 | |||
Net affordable housing tax credit investments and related unfunded commitments | $ 76,300 | $ 73,700 | ||
Affordable Housing Tax Credit Investments, Unfunded Commitments [Abstract] | ||||
2020 | 14,286 | |||
2021 | 5,310 | |||
2022 | 79 | |||
2023 | 55 | |||
2024 | 55 | |||
Thereafter | 1,485 | |||
Total Unfunded Commitments | 21,270 | |||
Investments in Affordable Housing Projects [Abstract] | ||||
Tax Credits and Other Tax Benefits recognized | 11,719 | 13,572 | $ 13,569 | |
Amortization expense in provision for income taxes | 7,566 | 8,311 | 8,373 | |
Affordable Housing Tax Credits, Proportional Amortization Method | 3,014 | 1,641 | 1,040 | |
Proportional Amortization Method, Qualified Affordable Housing Project Investments, Amortization | $ 2,578 | $ 1,332 | $ 800 |
Balance Sheet Offsetting (Repos
Balance Sheet Offsetting (Repos - by maturity date and collateral type) (Details 1) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | $ 604,306 | $ 504,296 |
Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 237,238 | 315,463 |
Debt Securities Issued by States and Political Subdivisions | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 2,790 | 3,496 |
Residential - Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 115,734 | 97,699 |
Residential - U.S. Government Sponsored Enterprises | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 248,544 | 87,638 |
Maturity Up To 90 Days [Member] | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 1,200 | 2,706 |
Maturity Up To 90 Days [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities sold under repurchase agreements | ||
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 repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 1,200 | 1,906 |
Maturity Up To 90 Days [Member] | Residential - Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 0 | 800 |
Maturity Up To 90 Days [Member] | Residential - U.S. Government Sponsored Enterprises | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Maturity 91 To 365 Days [Member] | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 2,616 | 1,590 |
Maturity 91 To 365 Days [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Maturity 91 To 365 Days [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 1,100 | 1,590 |
Maturity 91 To 365 Days [Member] | Residential - Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 1,516 | 0 |
Maturity 91 To 365 Days [Member] | Residential - U.S. Government Sponsored Enterprises | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Maturity 1 To 3 Years [Member] | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 225,000 | 225,000 |
Maturity 1 To 3 Years [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 199,173 | 198,442 |
Maturity 1 To 3 Years [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Maturity 1 To 3 Years [Member] | Residential - Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 25,827 | 26,558 |
Maturity 1 To 3 Years [Member] | Residential - U.S. Government Sponsored Enterprises | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Maturity After 3 Years [Member] | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 375,490 | 275,000 |
Maturity After 3 Years [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 38,065 | 117,021 |
Maturity After 3 Years [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 490 | 0 |
Maturity After 3 Years [Member] | Residential - Government Agencies | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | 88,391 | 70,341 |
Maturity After 3 Years [Member] | Residential - U.S. Government Sponsored Enterprises | ||
Securities sold under repurchase agreements | ||
Securities Sold under Agreements to Repurchase | $ 248,544 | $ 87,638 |
Balance Sheet Offsetting (Asset
Balance Sheet Offsetting (Assets and liabilities subject to MNA, or repurchase agreements) (Details 2) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | $ 604,306 | $ 504,296 |
Repurchase Agreements, Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Repurchase Agreements, Net Amounts of Liabilities Presented in the Statements of Condition | 604,306 | 504,296 |
Repurchase Agreements, Fair Value of Collateral Pledged | 604,306 | 504,296 |
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 | 5,100 | 300 |
Institutional Counterparties | Interest Rate Swap Agreements | ||
Assets: | ||
Gross Amounts of Recognized Assets | 584 | 7,572 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 584 | 7,572 |
Derivative Asset, Not Offset, Policy Election Deduction | 584 | 1,490 |
Gross Amounts Not Offset in the Statements of Condition - FV of collateral pledged | 0 | 0 |
Derivative Assets, Net Amount | 0 | 6,082 |
Liabilities: | ||
Gross Amounts of Recognized Liabilities | 5,361 | 1,490 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 5,361 | 1,490 |
Derivative Liability, Not Offset, Policy Election Deduction | 584 | 1,490 |
Derivative, Collateral, Right to Reclaim Securities | 3,818 | 0 |
Derivative Liabilities, Net Amount | 959 | 0 |
Private Institutions | ||
Offsetting Assets and Liabilities [Line items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 645,300 | 526,700 |
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | 600,000 | 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 | 600,000 | 500,000 |
Repurchase Agreements, Fair Value of Collateral Pledged | 600,000 | 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 | 5,500 | 6,800 |
Liabilities: | ||
Repurchase Agreements, Gross Amounts of Recognized Liabilities | 4,306 | 4,296 |
Repurchase Agreements, Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Repurchase Agreements, Net Amounts of Liabilities Presented in the Statements of Condition | 4,306 | 4,296 |
Repurchase Agreements, Fair Value of Collateral Pledged | 4,306 | 4,296 |
Securities Sold under Agreements to Repurchase, Net Amount Offset Against Collateral | $ 0 | $ 0 |
Commitments, Contingencies, a_3
Commitments, Contingencies, and Guarantees (Credit commitments) (Details 1) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Other Commitments [Line Items] | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 2,811,918 |
Commercial Letters of Credit | |
Other Commitments [Line Items] | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 16,981 |
Unfunded Commitments to Extend Credit | |
Other Commitments [Line Items] | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 2,713,937 |
Standby and Commercial Letters of Credit | Minimum [Member] | |
Other Commitments [Line Items] | |
Standby and Commercial Letters of Credit Remaining Term | 1 month |
Standby and Commercial Letters of Credit | Maximum [Member] | |
Other Commitments [Line Items] | |
Standby and Commercial Letters of Credit Remaining Term | 14 months |
Standby Letters of Credit | |
Other Commitments [Line Items] | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 81,000 |
Assets Secured for Standby Letters of Credit | $ 49,100 |
Commitments, Contingencies, a_4
Commitments, Contingencies, and Guarantees (Representations and warranties) (Details 3) - Residential Mortgage $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)Loan | |
Representations and Warranties | |
Unpaid principal balance of mortgage loans sold | $ | $ 2,800 |
Number of mortgage loans repurchased | 3 |
Unpaid principal balance of repurchased mortgage loan | $ | $ 0.9 |
Number of Mortgage Loans Repurchased, Pending | 0 |
Number of Mortgage Loans Repurchased due to Loan Servicing Activities, Pending | 0 |
Current residential mortgage loans serviced for investors as percentage of total | 99.00% |
Commitments, Contingencies, a_5
Commitments, Contingencies, and Guarantees Class settlement (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Litigation Settlement, Amount Awarded from Other Party | $ 8 | $ 2 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Fair value on recurring basis) (Details 1) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Available-for-Sale | $ 2,619,003 | $ 2,007,942 |
Loans Held for Sale | 39,062 | 10,987 |
Derivative Assets | 28,931 | 14,604 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets: | ||
Available-for-Sale | 56 | |
Fair Value, Recurring [Member] | ||
Assets: | ||
Available-for-Sale | 2,619,003 | 2,007,942 |
Loans Held for Sale | 39,062 | 10,987 |
Mortgage Servicing Rights | 1,126 | 1,290 |
Other Assets | 41,464 | 31,871 |
Derivative Assets | 28,931 | 14,604 |
Total Assets Measured at Fair Value on a Recurring Basis | 2,729,586 | 2,066,694 |
Liabilities: | ||
Derivative Liabilities | 6,377 | 9,747 |
Total Liabilities Measured at Fair Value on a Recurring Basis | 6,377 | 9,747 |
Fair Value, Recurring [Member] | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Assets: | ||
Available-for-Sale | 221,131 | 392,401 |
Fair Value, Recurring [Member] | Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale | 55,097 | 563,996 |
Fair Value, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets: | ||
Available-for-Sale | 22,147 | |
Fair Value, Recurring [Member] | Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale | 336,321 | 223,140 |
Fair Value, Recurring [Member] | Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale | 1,984,307 | 828,349 |
Fair Value, Recurring [Member] | Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale | 1,172,826 | 190,442 |
Fair Value, Recurring [Member] | Residential - U.S. Government Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale | 586,761 | 578,527 |
Fair Value, Recurring [Member] | Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale | 224,720 | 59,380 |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Available-for-Sale | 1,155 | 972 |
Loans Held for Sale | 0 | 0 |
Mortgage Servicing Rights | 0 | 0 |
Other Assets | 41,464 | 31,871 |
Derivative Assets | 0 | 0 |
Total Assets Measured at Fair Value on a Recurring Basis | 42,619 | 32,843 |
Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Total Liabilities Measured at Fair Value on a Recurring Basis | 0 | 0 |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Assets: | ||
Available-for-Sale | 1,155 | 972 |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale | 0 | 0 |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets: | ||
Available-for-Sale | 0 | |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale | 0 | 0 |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale | 0 | 0 |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale | 0 | 0 |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential - U.S. Government Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale | 0 | 0 |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale | 0 | 0 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Available-for-Sale | 2,617,848 | 2,006,970 |
Loans Held for Sale | 39,062 | 10,987 |
Mortgage Servicing Rights | 0 | 0 |
Other Assets | 0 | 0 |
Derivative Assets | 308 | 812 |
Total Assets Measured at Fair Value on a Recurring Basis | 2,657,218 | 2,018,769 |
Liabilities: | ||
Derivative Liabilities | 327 | 371 |
Total Liabilities Measured at Fair Value on a Recurring Basis | 327 | 371 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Assets: | ||
Available-for-Sale | 219,976 | 391,429 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale | 55,097 | 563,996 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets: | ||
Available-for-Sale | 22,147 | |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale | 336,321 | 223,140 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale | 1,984,307 | 828,349 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale | 1,172,826 | 190,442 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Residential - U.S. Government Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale | 586,761 | 578,527 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale | 224,720 | 59,380 |
Fair Value, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | ||
Assets: | ||
Available-for-Sale | 0 | 0 |
Loans Held for Sale | 0 | 0 |
Mortgage Servicing Rights | 1,126 | 1,290 |
Other Assets | 0 | 0 |
Derivative Assets | 28,623 | 13,792 |
Total Assets Measured at Fair Value on a Recurring Basis | 29,749 | 15,082 |
Liabilities: | ||
Derivative Liabilities | 6,050 | 9,376 |
Total Liabilities Measured at Fair Value on a Recurring Basis | 6,050 | 9,376 |
Fair Value, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | Debt Securities Issued by the U.S. Treasury and Government Agencies | ||
Assets: | ||
Available-for-Sale | 0 | 0 |
Fair Value, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | Debt Securities Issued by States and Political Subdivisions | ||
Assets: | ||
Available-for-Sale | 0 | 0 |
Fair Value, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets: | ||
Available-for-Sale | 0 | |
Fair Value, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | Debt Securities Issued by Corporations | ||
Assets: | ||
Available-for-Sale | 0 | 0 |
Fair Value, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | Mortgage-Backed Securities | ||
Assets: | ||
Available-for-Sale | 0 | 0 |
Fair Value, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | Residential - Government Agencies | ||
Assets: | ||
Available-for-Sale | 0 | 0 |
Fair Value, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | Residential - U.S. Government Sponsored Enterprises | ||
Assets: | ||
Available-for-Sale | 0 | 0 |
Fair Value, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) | Commercial - Government Agencies | ||
Assets: | ||
Available-for-Sale | $ 0 | $ 0 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (FV on recurring basis-Level 3 rollforward) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Mortgage Servicing Rights Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Fair Value, Mortgage Servicing Rights, Beginning Balance | $ 1,290 | $ 1,454 |
Fair Value, Mortgage Servicing Rights, Realized and Unrealized Net Gains (Losses) Included in Net Income | (164) | (164) |
Fair Value, Mortgage Servicing Rights, Ending Balance | 1,126 | 1,290 |
Fair Value, Mortgage Service Rights, Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held | 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 | 4,416 | 894 |
Fair Value, Net Derivative Assets and Liabilities, Realized and Unrealized Net Gains (Losses) Included in Net Income | 12,138 | 3,534 |
Fair Value, Net Derivative Assets and Liabilities, Transfers to Loans Held for Sale | (11,776) | (3,451) |
Fair Value, Net Derivative Assets and Liabilities, Ending Balance | 22,573 | 4,416 |
Fair Value, Net Derivative Assets and Liabilities,Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held | 22,573 | 4,416 |
Variation margin payments for swap liabilities | $ 17,795 | $ 3,439 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities (FV on recurring or nonrecurring basis-level 3 inputs) (Details 3) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
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 | $ 1,280 | $ 871 |
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 | $ 21,293 | $ 3,545 |
Mortgage Servicing Rights | Discounted Cash Flow | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Weighted Average Constant Prepayment Rate (as a percent) | 10.76% | 7.01% |
Mortgage Servicing Rights, at Fair Value | $ 26,840 | $ 30,508 |
boh_MeasurementInputClosingRatio [Member] | Fair Value, Inputs, Level 3 [Member] | Interest Rate Lock Commitments | Pricing Model | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Derivative Asset (Liability) Net, Measurement Input | 0.9224 | 0.8900 |
Measurement Input, Discount Rate [Member] | Fair Value, Inputs, Level 3 [Member] | Discounted Cash Flow | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Servicing Asset, Measurement Input | 0.0733 | 0.0959 |
Measurement Input, Entity Credit Risk [Member] | Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap Agreements | Discounted Cash Flow | ||
Level 3 Assets and Liabilities, Fair Value and Fair Value Unobservable Inputs | ||
Derivative Asset (Liability) Net, Measurement Input | 0.0020 | 0.0006 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities (FV on nonrecurring basis) (Details 4) $ in Millions | Dec. 31, 2019USD ($) |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | |
valuation allowance equipment held for sale | $ 0.2 |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities (FV option) (Details 5) - Residential Mortgage Loans Held For Sale - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Option | ||
Aggregate Fair Value | $ 39,062 | $ 10,987 |
Aggregate Unpaid Principal | 38,293 | 10,656 |
Aggregate Fair Value less Aggregate Unpaid Principal | $ 769 | $ 331 |
Fair Value of Assets and Liab_8
Fair Value of Assets and Liabilities (Financial instruments not recorded at FV on recurring basis) (Details 6) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | $ 3,062,882 | $ 3,413,994 | $ 3,894,121 |
Carrying Amount | |||
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | 3,042,294 | 3,482,092 | |
Loans | 10,664,885 | 10,084,527 | |
Financial Instruments - Liabilities | |||
Time Deposits | 1,802,431 | 1,745,522 | |
Securities Sold Under Agreements to Repurchase | 604,306 | 504,296 | |
Long-Term Debt | 75,000 | 125,000 | |
Fair value | |||
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | 3,062,882 | 3,413,994 | |
Loans | 10,873,208 | 10,008,417 | |
Financial Instruments - Liabilities | |||
Time Deposits | 1,800,773 | 1,734,447 | |
Securities Sold Under Agreements to Repurchase | 627,780 | 504,288 | |
Long-Term Debt | 75,581 | 124,559 | |
Fair value | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | 275,663 | 352,216 | |
Loans | 0 | 0 | |
Financial Instruments - Liabilities | |||
Time Deposits | 0 | 0 | |
Securities Sold Under Agreements to Repurchase | 0 | 0 | |
Long-Term Debt | 0 | 0 | |
Fair value | Significant Other Observable Inputs (Level 2) | |||
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | 2,787,219 | 3,061,778 | |
Loans | 0 | 0 | |
Financial Instruments - Liabilities | |||
Time Deposits | 1,800,773 | 1,734,447 | |
Securities Sold Under Agreements to Repurchase | 627,780 | 504,288 | |
Long-Term Debt | 75,581 | 124,559 | |
Fair value | Significant Other Unobservable Inputs (Level 3) | |||
Financial Instruments - Assets | |||
Held-to-Maturity, Fair Value | 0 | 0 | |
Loans | 10,873,208 | 10,008,417 | |
Financial Instruments - Liabilities | |||
Time Deposits | 0 | 0 | |
Securities Sold Under Agreements to Repurchase | 0 | 0 | |
Long-Term Debt | $ 0 | $ 0 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Service Charges on Deposit Accounts | $ 30,074 | $ 28,811 | $ 32,575 |
Fees, Exchange, and Other Service Charges | 57,893 | 57,482 | 54,845 |
Annuity and Insurance | 6,934 | 5,822 | 6,858 |
Other | 27,489 | 21,233 | 15,813 |
Noninterest Income | 183,338 | 168,923 | 185,417 |
Accounting Standards Update 2014-09 [Member] | |||
Noninterest Income | 183,338 | 168,923 | 185,417 |
Accounting Standards Update 2014-09 [Member] | Noninterest Income In Scope of Topic 606 [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 44,233 | 43,877 | 45,430 |
Service Charges on Deposit Accounts | 13,042 | 13,165 | 15,191 |
Fees, Exchange, and Other Service Charges | 46,381 | 46,350 | 44,560 |
Annuity and Insurance | 6,813 | 5,615 | 6,444 |
Other | 9,633 | 9,652 | 8,966 |
Noninterest Income | 120,102 | 118,659 | 120,591 |
Accounting Standards Update 2014-09 [Member] | Noninterest Income Out of Scope of Topic 606 [Member] | |||
Noninterest Income | $ 63,236 | $ 50,264 | $ 64,826 |
Bank of Hawaii Corporation Fi_3
Bank of Hawaii Corporation Financial Statements (Condensed Statements of Comprehensive Income) (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Investment Securities Gains (Losses), Net | $ (3,986) | $ (3,938) | $ 10,430 |
Noninterest Expense | 379,227 | 371,624 | 357,691 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 285,826 | 270,226 | 268,064 |
Income Tax Expense (Benefit) | 59,913 | 50,624 | 83,392 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 245,844 | 210,751 | 183,863 |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries and Interest Income | 220,000 | 185,000 | 130,000 |
Investment Securities Gains (Losses), Net | (850) | (819) | 12,027 |
Other Income | 261 | 198 | 204 |
Revenues | 219,411 | 184,379 | 142,231 |
Intercompany Salaries and Services Expenses | 768 | 734 | 720 |
Other Expenses | 1,682 | 1,701 | 1,401 |
Noninterest Expense | 2,450 | 2,435 | 2,121 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 216,961 | 181,944 | 140,110 |
Income Tax Expense (Benefit) | (1,818) | (2,229) | 3,557 |
Equity in Net Assets of Subsidiaries | 7,134 | 35,429 | 48,119 |
Net Income (Loss) Available to Common Stockholders, Basic | 225,913 | 219,602 | 184,672 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 245,844 | $ 210,751 | $ 183,863 |
Leases (Lease Assets and Lease
Leases (Lease Assets and Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Lease Right-of-Use Assets | ||||
Operating lease right-of-use assets | $ 100,838 | $ 106,514 | $ 0 | $ 0 |
Finance lease right-of-use assets | 2,376 | |||
Total Lease Right-of-Use Assets | 103,214 | |||
Lease Liabilities | ||||
Operating lease liabilities | 108,210 | $ 113,394 | $ 0 | $ 0 |
Finance lease liabilities | 10,565 | |||
Total Lease Liabilities | $ 118,775 |
Bank of Hawaii Corporation Fi_4
Bank of Hawaii Corporation Financial Statements (Condensed Statements of Condition) (Details 2) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Condensed Financial Statements, Captions [Line Items] | ||||
Debt Securities, Held-to-maturity | $ 3,042,294 | $ 3,482,092 | $ 3,928,170 | |
Goodwill | 31,517 | 31,517 | ||
Other Assets | 272,674 | 230,882 | ||
Total Assets | 18,095,496 | 17,143,974 | 17,089,052 | |
Other Liabilities | 157,472 | 139,911 | ||
Liabilities | 16,808,664 | 15,875,774 | ||
Stockholders' Equity Attributable to Parent | 1,286,832 | 1,268,200 | $ 1,231,868 | $ 1,161,537 |
Liabilities and Equity | 18,095,496 | 17,143,974 | ||
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash with Subsidiaries | 37,056 | 52,731 | ||
Debt Securities, Held-to-maturity | 4,974 | 4,999 | ||
Goodwill | 14,129 | 14,129 | ||
Taxes Receivable and Deferred Taxes | 1,979 | 1,520 | ||
Other Assets | 10,422 | 8,468 | ||
Equity in Undistributed Income of Subsidiaries | 1,229,775 | 1,195,132 | ||
Total Assets | 1,298,335 | 1,276,979 | ||
Accrued Income Taxes | 58 | 60 | ||
Other Liabilities | 11,445 | 8,719 | ||
Liabilities | 11,503 | 8,779 | ||
Stockholders' Equity Attributable to Parent | 1,286,832 | 1,268,200 | ||
Liabilities and Equity | $ 1,298,335 | $ 1,276,979 |
Leases Leases (Lessee, Finance
Leases Leases (Lessee, Finance Lease, Incremental Borrowing Rates) (Details) | Dec. 31, 2019 |
Weighted-average Remaining Lease Term [Abstract] | |
Operating leases | 16 years 9 months 18 days |
Finance leases | 33 years |
Weighted-average Discount Rate [Abstract] | |
Operating leases | 3.67% |
Finance leases | 7.04% |
Bank of Hawaii Corporation Fi_5
Bank of Hawaii Corporation Financial Statements (Condensed Statements of Cash Flows) (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Share-Based Compensation | $ 8,337 | $ 8,146 | $ 7,369 |
Net Losses (Gains) on Investment Securities | 3,986 | 3,938 | (10,430) |
Net Change in Other Assets and Other Liabilities | (20,039) | 27,815 | (60,622) |
Investing Activities | |||
Purchase of Investment Securities Held-to-Maturity Securities | (1,380,430) | (419,640) | (995,076) |
Financing Activities | |||
Proceeds from Issuance of Common Stock | 7,872 | 7,873 | 13,101 |
Repurchase of Common Stock | (137,649) | (91,988) | (47,076) |
Cash Dividends Paid | (105,478) | (98,496) | (87,066) |
Cash and Cash Equivalents at Beginning of Period | 525,969 | ||
Cash and Cash Equivalents at End of Period | 558,658 | 525,969 | |
Parent Company [Member] | |||
Operating Activities | |||
Net Income | 225,913 | 219,602 | 184,672 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Share-Based Compensation | 760 | 630 | 573 |
Net Losses (Gains) on Investment Securities | 850 | 819 | (12,027) |
Equity in Undistributed Income of Subsidiaries | (7,134) | (35,429) | (48,119) |
Net Change in Other Assets and Other Liabilities | (135) | 870 | (6,477) |
Net Cash Provided by Operating Activities | 220,254 | 186,492 | 118,622 |
Investing Activities | |||
Payments for (Proceeds from) Businesses and Interest in Affiliates | 0 | 0 | 613 |
Payments for (Proceeds from) Long-term Investments | 0 | 0 | 12,467 |
Proceeds from Sales of Investment Securities | (4,259) | 819 | (12,027) |
Purchase of Investment Securities Held-to-Maturity Securities | (4,933) | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities | (674) | (819) | 173 |
Financing Activities | |||
Proceeds from Issuance of Common Stock | 7,872 | 7,873 | 13,101 |
Repurchase of Common Stock | (137,649) | (91,988) | (47,076) |
Cash Dividends Paid | (105,478) | (98,496) | (87,066) |
Net Cash Provided by (Used in) Financing Activities | (235,255) | (182,611) | (121,041) |
Net Change in Cash and Cash Equivalents | (15,675) | 3,062 | (2,246) |
Cash and Cash Equivalents at Beginning of Period | 52,731 | 49,669 | 51,915 |
Cash and Cash Equivalents at End of Period | $ 37,056 | $ 52,731 | $ 49,669 |
Leases (Lease Cost and other Le
Leases (Lease Cost and other Lease Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lease, Cost [Abstract] | |||
Operating lease cost | $ 12,616 | ||
Variable lease cost | 3,504 | ||
Short-term lease cost | 591 | ||
Interest on lease liabilities | 747 | ||
Amortization of right-of-use assets | 72 | ||
Sublease income | (8,281) | ||
Net lease cost | 9,249 | ||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | 12,779 | ||
Operating cash flows from finance leases | 747 | ||
Financing cash flows from finance leases | 78 | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | 4,101 | ||
Right-of-use assets obtained in exchange for new finance lease liabilities | 0 | ||
Rent expense | $ 19,300 | $ 18,300 | |
Rental income from operating leases, including subleases | $ 10,700 | 8,700 | 8,200 |
Prior periods sublease revenue | $ 7,600 | $ 7,100 |
Leases (Lease Maturity Schedule
Leases (Lease Maturity Schedule) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Finance Leases | ||||
2020 | $ 825 | |||
2021 | 825 | |||
2022 | 825 | |||
2023 | 825 | |||
2024 | 825 | |||
Thereafter | 23,105 | |||
Total Future Minimum Lease Payments | 27,230 | |||
Amounts Representing Interest | (16,665) | |||
Present Value of Net Future Minimum Lease Payments | 10,565 | |||
Operating Leases | ||||
2020 | 12,003 | |||
2021 | 11,329 | |||
2022 | 10,515 | |||
2023 | 9,687 | |||
2024 | 8,235 | |||
Thereafter | 100,180 | |||
Total Future Minimum Lease Payments | 151,949 | |||
Amounts Representing Interest | (43,739) | |||
Present Value of Net Future Minimum Lease Payments | $ 108,210 | $ 113,394 | $ 0 | $ 0 |
Leases Leases (Lease Receivable
Leases Leases (Lease Receivable Maturity) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 6,614 |
2021 | 5,129 |
2022 | 3,817 |
2023 | 2,554 |
2024 | 1,152 |
Thereafter | 4,530 |
Total | $ 23,796 |