Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 29, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FIRST MIDWEST BANCORP INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 81,316,401 | |
Amendment Flag | false | |
Entity Central Index Key | 702,325 | |
Entity Filer Category | Large Accelerated Filer | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 149,957 | $ 114,587 |
Interest-bearing deposits in other banks | 105,432 | 266,615 |
Trading securities, at fair value | 17,693 | 16,894 |
Securities available-for-sale, at fair value | 1,773,759 | 1,306,636 |
Securities held-to-maturity, at amortized cost | 20,672 | 23,152 |
Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock, at cost | 44,506 | 39,306 |
Loans | 7,979,537 | 7,161,715 |
Allowance for loan losses | (80,105) | (73,630) |
Net loans | 7,899,432 | 7,088,085 |
Other real estate owned (OREO) | 29,990 | 27,782 |
Premises, furniture, and equipment, net | 140,554 | 122,278 |
Investment in bank-owned life insurance (BOLI) | 218,133 | 209,601 |
Goodwill and other intangible assets | 369,962 | 339,277 |
Accrued interest receivable and other assets | 225,720 | 178,463 |
Total assets | 10,995,810 | 9,732,676 |
Liabilities | ||
Noninterest-bearing deposits | 2,683,495 | 2,414,454 |
Interest-bearing deposits | 6,287,821 | 5,683,284 |
Total deposits | 8,971,316 | 8,097,738 |
Borrowed funds | 449,744 | 165,096 |
Senior and subordinated debt | 162,876 | 201,208 |
Accrued interest payable and other liabilities | 160,985 | 122,366 |
Total liabilities | 9,744,921 | 8,586,408 |
Stockholders' Equity | ||
Common stock | 913 | 882 |
Additional paid-in capital | 495,159 | 446,672 |
Retained earnings | 982,277 | 953,516 |
Accumulated other comprehensive loss, net of tax | (8,803) | (28,389) |
Treasury stock, at cost | (218,657) | (226,413) |
Total stockholders' equity | 1,250,889 | 1,146,268 |
Total liabilities and stockholders' equity | $ 10,995,810 | $ 9,732,676 |
Stockholders' Equity, Number of Shares, Par Value, and Other Disclosures | ||
Par Value, common stock (in Dollars per share) | $ 0.01 | $ 0.01 |
Shares authorized, preferred stock (in Shares) | 1,000,000 | 1,000,000 |
Shares authorized, common stock (in Shares) | 150,000,000 | 150,000,000 |
Shares issued, common stock (in Shares) | 91,277,000 | 88,228,000 |
Shares outstanding, common stock (in Shares) | 81,312,000 | 77,952,000 |
Treasury shares, common stock (in Shares) | 9,965,000 | 10,276,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest Income | ||||
Loans | $ 86,526 | $ 75,820 | $ 164,981 | $ 149,217 |
Investment securities | 9,363 | 7,823 | 17,921 | 16,116 |
Other short-term investments | 661 | 913 | 1,196 | 1,692 |
Total interest income | 96,550 | 84,556 | 184,098 | 167,025 |
Interest Expense | ||||
Deposits | 2,482 | 2,402 | 4,867 | 4,927 |
Borrowed funds | 1,499 | 118 | 2,815 | 136 |
Senior and subordinated debt | 2,588 | 3,134 | 5,721 | 6,278 |
Total interest expense | 6,569 | 5,654 | 13,403 | 11,341 |
Net interest income | 89,981 | 78,902 | 170,695 | 155,684 |
Provision for loan losses | 8,085 | 6,000 | 15,678 | 12,552 |
Net interest income after provision for loan losses | 81,896 | 72,902 | 155,017 | 143,132 |
Noninterest Income | ||||
Service charges on deposit accounts | 10,169 | 9,886 | 19,642 | 19,157 |
Wealth management fees | 8,642 | 7,433 | 16,201 | 14,447 |
Card-based fees | 7,592 | 6,953 | 14,310 | 13,355 |
Mortgage banking income | 1,863 | 1,439 | 3,231 | 2,562 |
Other service charges, commissions, and fees | 7,668 | 5,862 | 16,144 | 10,693 |
Net securities gains | 23 | 515 | 910 | 1,027 |
Other income | 1,865 | 1,900 | 3,310 | 3,848 |
Total noninterest income | 37,822 | 33,988 | 73,748 | 65,089 |
Noninterest Expense | ||||
Salaries and employee benefits | 46,267 | 40,294 | 90,861 | 81,010 |
Net occupancy and equipment expense | 9,928 | 9,622 | 19,625 | 20,058 |
Professional services | 5,292 | 5,322 | 11,212 | 10,431 |
Technology and related costs | 3,669 | 3,527 | 7,370 | 7,214 |
Net OREO expense | 1,122 | 1,861 | 1,786 | 3,065 |
Other expenses | 14,458 | 12,825 | 27,451 | 24,330 |
Acquisition and integration related expenses | 618 | 0 | 5,638 | 0 |
Total noninterest expense | 81,354 | 73,451 | 163,943 | 146,108 |
Income before income tax expense | 38,364 | 33,439 | 64,822 | 62,113 |
Income tax expense | 13,097 | 10,865 | 21,593 | 19,657 |
Net income | $ 25,267 | $ 22,574 | $ 43,229 | $ 42,456 |
Per Common Share Data | ||||
Basic earnings per common share (in Dollars per share) | $ 0.31 | $ 0.29 | $ 0.54 | $ 0.55 |
Diluted earnings per common share (in Dollars per share) | 0.31 | 0.29 | 0.54 | 0.55 |
Dividends declared per common share (in Dollars per share) | $ 0.09 | $ 0.09 | $ 0.18 | $ 0.18 |
Weighted-average common shares outstanding (in Shares) | 80,383 | 77,089 | 79,182 | 77,004 |
Weighted-average diluted common shares outstanding (in Shares) | 80,396 | 77,101 | 79,194 | 77,016 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 25,267 | $ 22,574 | $ 43,229 | $ 42,456 |
Unrealized holding gains (losses): | ||||
Before tax | 9,493 | (11,690) | 28,366 | (5,378) |
Tax effect | (3,795) | 4,670 | (11,341) | 2,142 |
Net of tax | 5,698 | (7,020) | 17,025 | (3,236) |
Reclassification of net gains included in net income: | ||||
Before tax | 23 | 515 | 910 | 1,027 |
Tax effect | (9) | (211) | (364) | (420) |
Net of tax | 14 | 304 | 546 | 607 |
Net unrealized holding gains (losses) | 5,684 | (7,324) | 16,479 | (3,843) |
Derivative Instruments | ||||
Before tax | 924 | (1,831) | 5,199 | (2,550) |
Tax effect | (370) | 728 | (2,092) | 1,016 |
Net of tax | 554 | (1,103) | 3,107 | (1,534) |
Total other comprehensive income (loss) | 6,238 | (8,427) | 19,586 | (5,377) |
Total comprehensive income | $ 31,505 | $ 14,147 | $ 62,815 | $ 37,079 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Unaudited) - AOCI - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Other comprehensive income | $ 6,238 | $ (8,427) | $ 19,586 | $ (5,377) |
Accumulated Unrealized Gain (Loss) on Securities Available- for-Sale | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (10,271) | (2,950) | ||
Other comprehensive income | 16,479 | (3,843) | ||
Ending balance | 6,208 | (6,793) | 6,208 | (6,793) |
Accumulated Unrealized Gain (Loss) on Derivative Instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (2,468) | (1,138) | ||
Other comprehensive income | 3,107 | (1,534) | ||
Ending balance | 639 | (2,672) | 639 | (2,672) |
Unrecognized Net Pension Costs | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (15,650) | (11,767) | ||
Other comprehensive income | 0 | 0 | ||
Ending balance | (15,650) | (11,767) | (15,650) | (11,767) |
Total Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (28,389) | (15,855) | ||
Other comprehensive income | 19,586 | (5,377) | ||
Ending balance | $ (8,803) | $ (21,232) | $ (8,803) | $ (21,232) |
Consolidated Statements of Chan
Consolidated Statements of Changes In Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance Beginning at Dec. 31, 2014 | $ 1,100,775 | $ 882 | $ 449,798 | $ 899,516 | $ (15,855) | $ (233,566) |
Balance Beginning (in Shares) at Dec. 31, 2014 | 77,695 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 42,456 | 42,456 | ||||
Other comprehensive income | (5,377) | (5,377) | ||||
Common dividends declared ($0.18 per common share) | (14,033) | (14,033) | ||||
Restricted stock activity | (2,456) | (9,663) | 7,207 | |||
Restricted stock activity (in Shares) | 268 | |||||
Treasury stock issued to benefit plans | 105 | (64) | 169 | |||
Share-based compensation expense | 3,487 | 3,487 | ||||
Treasury stock issued to benefit plans (in Shares) | (2) | |||||
Balance Ending at Jun. 30, 2015 | 1,124,957 | $ 882 | 443,558 | 927,939 | (21,232) | (226,190) |
Balance Ending (in Shares) at Jun. 30, 2015 | 77,961 | |||||
Balance Beginning at Dec. 31, 2015 | $ 1,146,268 | $ 882 | 446,672 | 953,516 | (28,389) | (226,413) |
Balance Beginning (in Shares) at Dec. 31, 2015 | 77,952 | 77,952 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 43,229 | 43,229 | ||||
Other comprehensive income | 19,586 | 19,586 | ||||
Common dividends declared ($0.18 per common share) | (14,468) | (14,468) | ||||
Acquisition, net of issuance costs | 54,896 | $ 31 | 54,865 | |||
Acquisition, net of issuance costs (in Shares) | 3,042 | |||||
Common stock issued | 112 | 112 | ||||
Common stock issued (in Shares) | 7 | |||||
Restricted stock activity | (2,500) | (10,319) | 7,819 | |||
Restricted stock activity (in Shares) | 316 | |||||
Treasury stock issued to benefit plans | (71) | (8) | (63) | |||
Share-based compensation expense | 3,837 | 3,837 | ||||
Treasury stock issued to benefit plans (in Shares) | (5) | |||||
Balance Ending at Jun. 30, 2016 | $ 1,250,889 | $ 913 | $ 495,159 | $ 982,277 | $ (8,803) | $ (218,657) |
Balance Ending (in Shares) at Jun. 30, 2016 | 81,312 | 81,312 |
Consolidated Statements of Cha7
Consolidated Statements of Changes In Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in Dollars per share) | $ 0.09 | $ 0.09 | $ 0.18 | $ 0.18 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by operating activities | $ 58,876 | $ 63,306 |
Investing Activities | ||
Proceeds from maturities, repayments, and calls of securities available-for-sale | 174,937 | 148,842 |
Proceeds from sales of securities available-for-sale | 40,043 | 47,320 |
Purchases of securities available-for-sale | (532,934) | (159,252) |
Proceeds from maturities, repayments, and calls of securities held-to-maturity | 4,360 | 3,447 |
Purchases of securities held-to-maturity | (16) | (1,184) |
Purchases of FHLB stock | (3,651) | (1,190) |
Net increase in loans | (432,283) | (128,883) |
Proceeds from claims on BOLI, net of premiums paid | 1,599 | 1,021 |
Proceeds from sales of OREO | 3,852 | 10,584 |
Proceeds from sales of premises, furniture, and equipment | 3,213 | 195 |
Purchases of premises, furniture, and equipment | (7,536) | (4,386) |
Net cash received from acquisitions | 57,347 | 0 |
Net cash used in investing activities | (691,069) | (83,486) |
Financing Activities | ||
Net increase in deposit accounts | 278,657 | 324,913 |
Net increase in borrowed funds | 282,232 | 51,042 |
Payments for the maturity of subordinated debt | (38,500) | 0 |
Cash dividends paid | (14,123) | (13,232) |
Restricted stock activity | (2,248) | (2,766) |
Excess tax benefit related to share-based compensation | 362 | 794 |
Net cash provided by financing activities | 506,380 | 360,751 |
Net (decrease) increase in cash and cash equivalents | (125,813) | 340,571 |
Cash and cash equivalents at beginning of period | 381,202 | 606,262 |
Cash and cash equivalents at end of period | 255,389 | 946,833 |
Supplemental Disclosures of Cash Flow Information: | ||
Income taxes paid | 7,427 | 7,953 |
Interest paid to depositors and creditors | 13,269 | 11,476 |
Dividends declared, but unpaid | 7,595 | 7,023 |
Common stock issued for acquisitions, net of issuance costs | 54,896 | 0 |
Non-cash transfers of loans to OREO | 3,675 | 4,657 |
Non-cash transfers of loans held-for-investment to loans held-for-sale | $ 63,709 | $ 23,012 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation ā The accompanying unaudited condensed consolidated interim financial statements ("consolidated financial statements") of First Midwest Bancorp, Inc. (the " Company "), a Delaware corporation, were prepared in accordance with the rules and regulations of the Securities and Exchange Commission (" SEC ") for quarterly reports on Form 10-Q and reflect all adjustments that management deems necessary for the fair presentation of the financial position and results of operations for the periods presented. The results of operations for the quarter and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles (" GAAP ") and general practices within the banking industry. The accompanying consolidated financial statements do not include certain information and note disclosures required by GAAP for complete annual financial statements. Therefore, these financial statements should be read in conjunction with the Company 's 2015 Annual Report on Form 10-K (" 2015 10-K"). The Company uses the accrual basis of accounting for financial reporting purposes. Certain reclassifications were made to prior year amounts to conform to the current year presentation. Use of Estimates ā The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates and assumptions are based on the best available information, actual results could differ from those estimates. Principles of Consolidation ā The accompanying consolidated financial statements include the financial position and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. Assets held in a fiduciary or agency capacity are not assets of the Company or its subsidiaries and are not included in the consolidated financial statements. The accounting policies related to business combinations, loans, the allowance for credit losses, and derivative financial instruments are presented below. For a summary of all other significant accounting policies, see Note 1, "Summary of Significant Accounting Policies," in the Company 's 2015 10-K. Business Combinations ā Business combinations are accounted for under the acquisition method of accounting. Assets acquired and liabilities assumed are recorded at their estimated fair values as of the date of acquisition, with any excess of the purchase price of the acquisition over the fair value of the identifiable net tangible and intangible assets acquired recorded as goodwill. Alternatively, a gain is recorded if the fair value of assets purchased exceeds the fair value of liabilities assumed and consideration paid. The results of operations of the acquired business are included in the Condensed Consolidated Statements of Income from the effective date of the acquisition. Loans ā Loans held-for-investment are loans that the Company intends to hold until they are paid in full and are carried at the principal amount outstanding, including certain net deferred loan origination fees. Loan origination fees, commitment fees, and certain direct loan origination costs are deferred, and the net amount is amortized as a yield adjustment over the contractual life of the related loans or commitments and included in interest income. Fees related to standby letters of credit are amortized into fee income over the contractual life of the commitment. Other credit-related fees are recognized as fee income when earned. The Company 's net investment in direct financing leases is included in loans and consists of future minimum lease payments and estimated residual values, net of unearned income. Interest income on loans is accrued based on principal amounts outstanding. Loans held-for-sale are carried at the lower of aggregate cost or fair value and included in other assets in the Consolidated Statements of Financial Condition. Acquired and Covered Loans ā Covered loans consists of loans acquired by the Company in Federal Deposit Insurance Corporation (" FDIC ")-assisted transactions, which are covered by loss share agreements with the FDIC (the " FDIC Agreements "), under which the FDIC reimburses the Company for the majority of the losses and eligible expenses related to these assets during the coverage period. Acquired loans consist of all other loans that were acquired in business combinations that are not covered by the FDIC Agreements. Covered loans and acquired loans are included within loans held-for-investment. Acquired and covered loans are separated into (i) non-purchased credit impaired (" Non-PCI ") and (ii) purchased credit impaired (" PCI ") loans. Non-PCI loans include loans that did not have evidence of credit deterioration since origination at the acquisition date. PCI loans include loans that had evidence of credit deterioration since origination and for which it was probable at acquisition that the Company would not collect all contractually required principal and interest payments. Evidence of credit deterioration was evaluated using various indicators, such as past due and non-accrual status. Leases and revolving loans do not qualify to be accounted for as PCI loans and are accounted for as Non-PCI loans. The acquisition adjustment related to Non-PCI loans is amortized into interest income over the contractual life of the related loans. If an acquired Non-PCI loan is renewed subsequent to the acquisition date, any remaining acquisition adjustment is accreted into interest income and the loan is considered a new loan that is no longer classified as an acquired loan. PCI loans are accounted for based on estimates of expected future cash flows. To estimate the fair value, the Company generally aggregates purchased consumer loans and certain smaller balance commercial loans into pools of loans with common risk characteristics, such as delinquency status, credit score, and internal risk ratings. The fair values of larger balance commercial loans are estimated on an individual basis. Expected future cash flows in excess of the fair value of loans at the purchase date ("accretable yield") are recorded as interest income over the life of the loans if the timing and amount of the expected future cash flows can be reasonably estimated. The non-accretable yield represents the difference between contractually required payments and the expected future cash flows determined at acquisition. Subsequent increases in expected future cash flows are offset against the allowance for credit losses to the extent an allowance has been established or otherwise recognized as interest income prospectively. The present value of any decreases in expected future cash flows is recognized by recording a charge-off through the allowance for loan losses or providing an allowance for loan losses. 90-Days Past Due Loans āThe Company 's accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is sufficiently collateralized and in the process of renewal or collection. Non-accrual Loans ā Generally, corporate loans are placed on non-accrual status (i) when either principal or interest payments become 90 days or more past due unless the credit is sufficiently collateralized and in the process of renewal or collection, or (ii) when an individual analysis of a borrower's creditworthiness warrants a downgrade to non-accrual regardless of past due status. When a loan is placed on non-accrual status, unpaid interest credited to income in the current year is reversed, and unpaid interest accrued in prior years is charged against the allowance for loan losses. After the loan is placed on non-accrual status, all debt service payments are applied to the principal on the loan. Future interest income may only be recorded on a cash basis after recovery of principal is reasonably assured. Non-accrual loans are returned to accrual status when the financial position of the borrower and other relevant factors indicate that the Company will collect all principal and interest. Commercial loans and loans secured by real estate are charged-off when deemed uncollectible. A loss is recorded if the net realizable value of the underlying collateral is less than the outstanding principal and interest. Consumer loans that are not secured by real estate are subject to mandatory charge-off at a specified delinquency date and are usually not classified as non-accrual prior to being charged-off. Closed-end consumer loans, which include installment, automobile, and single payment loans, are usually charged-off no later than the end of the month in which the loan becomes 120 days past due. PCI loans are generally considered accruing loans unless reasonable estimates of the timing and amount of expected future cash flows cannot be determined. Loans without reasonable future cash flow estimates are classified as non-accrual loans, and interest income is not recognized on those loans until the timing and amount of the expected future cash flows can be reasonably determined. Troubled Debt Restructurings ( " TDR s" ) ā A restructuring is considered a TDR when (i) the borrower is experiencing financial difficulties, and (ii) the creditor grants a concession, such as forgiveness of principal, reduction of the interest rate, changes in payments, or extension of the maturity date. Loans are not classified as TDR s when the modification is short-term or results in an insignificant delay in payments. The Company 's TDR s are determined on a case-by-case basis. The Company does not accrue interest on a TDR unless it believes collection of all principal and interest under the modified terms is reasonably assured. For a TDR to begin accruing interest, the borrower must demonstrate some level of past performance and the future capacity to perform under the modified terms. Generally, six months of consecutive payment performance under the restructured terms is required before a TDR is returned to accrual status. However, the period could vary depending on the individual facts and circumstances of the loan. An evaluation of the borrower's current creditworthiness is used to assess the borrower's capacity to repay the loan under the modified terms. This evaluation includes an estimate of expected future cash flows, evidence of strong financial position, and estimates of the value of collateral, if applicable. For TDR s to be removed from TDR status in the calendar year after the restructuring, the loans must (i) have an interest rate and terms that reflect market conditions at the time of restructuring, and (ii) be in compliance with the modified terms. If the loan was restructured at below market rates and terms, it continues to be separately reported as restructured until it is paid in full or charged-off. Impaired Loans ā Impaired loans consist of corporate non-accrual loans and TDR s. A loan is considered impaired when it is probable that the Company will not collect all contractual principal and interest. With the exception of accruing TDR s, impaired loans are classified as non-accrual and are exclusive of smaller homogeneous loans, such as home equity, 1-4 family mortgages, and installment loans. Impaired loans with balances under a specified threshold are not individually evaluated for impairment. For all other impaired loans, impairment is measured by comparing the estimated value of the loan to the recorded book value. The value of collateral-dependent loans is based on the fair value of the underlying collateral, less costs to sell. The value of other loans is measured using the present value of expected future cash flows discounted at the loan's initial effective interest rate. Allowance for Credit Losses ā The allowance for credit losses is comprised of the allowance for loan losses and the reserve for unfunded commitments, and is maintained by management at a level believed adequate to absorb estimated losses inherent in the existing loan portfolio. Determination of the allowance for credit losses is subjective since it requires significant estimates and management judgment, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans, consideration of current economic trends, and other factors. Loans deemed to be uncollectible are charged-off against the allowance for loan losses, while recoveries of amounts previously charged-off are credited to the allowance for loan losses. Additions to the allowance for loan losses are charged to expense through the provision for loan losses. The amount of provision depends on a number of factors, including net charge-off levels, loan growth, changes in the composition of the loan portfolio, and the Company 's assessment of the allowance for loan losses based on the methodology discussed below. Allowance for Loan Losses ā The allowance for loan losses consists of (i) specific reserves for individual loans where the recorded investment exceeds the value, (ii) an allowance based on a loss migration analysis that uses historical credit loss experience for each loan category, and (iii) an allowance based on other internal and external qualitative factors. The specific reserves component of the allowance for loan losses is based on a periodic analysis of impaired loans exceeding a fixed dollar amount. If the value of an impaired loan is less than the recorded book value, the Company either establishes a valuation allowance (i.e., a specific reserve) equal to the excess of the book value over the value of the loan as a component of the allowance for loan losses or charges off the amount if it is a confirmed loss. The general reserve component is based on a loss migration analysis, which examines actual loss experience by loan category for a rolling 8-quarter period and the related internal risk rating for corporate loans. The loss migration analysis is updated quarterly primarily using actual loss experience. This component is then adjusted based on management's consideration of many internal and external qualitative factors, including: ā¢ Changes in the composition of the loan portfolio, trends in the volume of loans, and trends in delinquent and non-accrual loans that could indicate that historical trends do not reflect current conditions. ā¢ Changes in credit policies and procedures, such as underwriting standards and collection, charge-off, and recovery practices. ā¢ Changes in the experience, ability, and depth of credit management and other relevant staff. ā¢ Changes in the quality of the Company 's loan review system and Board of Directors oversight. ā¢ The effect of any concentration of credit and changes in the level of concentrations, such as loan type or risk rating. ā¢ Changes in the value of the underlying collateral for collateral-dependent loans. ā¢ Changes in the national and local economy that affect the collectability of various segments of the portfolio. ā¢ The effect of other external factors, such as competition and legal and regulatory requirements, on the Company 's loan portfolio. The allowance for loan losses also consists of an allowance on acquired and covered Non-PCI and PCI loans. No allowance for loan losses is recorded on acquired loans at the acquisition date. Subsequent to the acquisition date, an allowance for credit losses is established as necessary to reflect credit deterioration. The acquired Non-PCI allowance is based on management's evaluation of the acquired Non-PCI loan portfolio giving consideration to the current portfolio balance including the remaining acquisition adjustments, maturity dates, and overall credit quality. The allowance for covered Non-PCI loans is calculated in the same manner as the general reserve component based on a loss migration analysis as discussed above. The acquired and covered PCI allowance reflects the difference between the carrying value and the discounted expected future cash flows of the acquired and covered PCI loans. On a periodic basis, the adequacy of this allowance is determined through a re-estimation of expected future cash flows on all of the outstanding acquired and covered PCI loans using either a probability of default/loss given default (" PD/LGD ") methodology or a specific review methodology. The PD/LGD model is a loss model that estimates expected future cash flows using a probability of default curve and loss given default estimates. Acquired Non-PCI loans that have renewed subsequent to the respective acquisition dates are no longer classified as acquired loans. Instead, they are included in the general loan population and allocated an allowance based on a loss migration analysis. Reserve for Unfunded Commitments ā The Company also maintains a reserve for unfunded commitments, including letters of credit, for the risk of loss inherent in these arrangements. The reserve for unfunded commitments is estimated using the loss migration analysis from the allowance for loan losses, adjusted for probabilities of future funding requirements. The reserve for unfunded commitments is included in other liabilities in the Consolidated Statements of Financial Condition. The establishment of the allowance for credit losses involves a high degree of judgment given the difficulty of assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the adequacy of the allowance for credit losses depends on a variety of factors beyond the Company 's control, including the performance of its loan portfolio, the economy, changes in interest rates and property values, and the interpretation of loan risk classifications by regulatory authorities. Derivative Financial Instruments ā To provide derivative products to customers and in the ordinary course of business, the Company enters into derivative transactions as part of its overall interest rate risk management strategy to minimize significant unplanned fluctuations in earnings and expected future cash flows caused by interest rate volatility. All derivative instruments are recorded at fair value as either other assets or other liabilities in the Consolidated Statements of Financial Condition. Subsequent changes in a derivative's fair value are recognized in earnings unless specific hedge accounting criteria are met. On the date the Company enters into a derivative contract, the derivative is designated as a fair value hedge, a cash flow hedge, or a non-hedge derivative instrument. Fair value hedges are designed to mitigate exposure to changes in the fair value of an asset or liability attributable to a particular risk, such as interest rate risk. Cash flow hedges are designed to mitigate exposure to variability in expected future cash flows to be received or paid related to an asset, liability, or other type of forecasted transaction. The Company formally documents all relationships between hedging instruments and hedged items, including its risk management objective and strategy at inception. At the hedge's inception and quarterly thereafter, a formal assessment is performed to determine the effectiveness of the derivative in offsetting changes in the fair values or expected future cash flows of the hedged items in the current period and prospectively. If a derivative instrument designated as a hedge is terminated or ceases to be highly effective, hedge accounting is discontinued prospectively, and the gain or loss is amortized into earnings. For fair value hedges, the gain or loss is amortized over the remaining life of the hedged asset or liability. For cash flow hedges, the gain or loss is amortized over the same period that the forecasted hedged transactions impact earnings. If the hedged item is disposed of, any fair value adjustments are included in the gain or loss from the disposition of the hedged item. If the forecasted transaction is no longer probable, the gain or loss is included in earnings immediately. For fair value hedges, changes in the fair value of the derivative instruments, as well as changes in the fair value of the hedged item, are recognized in earnings. For cash flow hedges, the effective portion of the change in fair value of the derivative instrument is reported as a component of accumulated other comprehensive loss and is reclassified to earnings when the hedged transaction is reflected in earnings. Ineffectiveness is calculated based on the change in fair value of the hedged item compared with the change in fair value of the hedging instrument. For all types of hedges, any ineffectiveness in the hedging relationship is recognized in earnings during the period the ineffectiveness occurs. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Adopted Accounting Pronouncements Amendments to Consolidation Analysis: In February 2015, the Financial Accounting Standards Board (" FASB ") issued guidance that updates current accounting for the consolidation of certain legal entities. This guidance modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, affects the consolidation analysis of reporting entities that are involved with VIEs, and provides certain exceptions from consolidation guidance for certain reporting entities. This guidance is effective for annual and interim periods beginning after December 15, 2015. The adoption of this guidance on January 1, 2016 did not materially impact the Company 's financial condition, results of operations, or liquidity. Simplifying the Presentation of Debt Issuance Costs: In April of 2015, the FASB issued guidance to clarify the presentation of debt issuance costs within the balance sheet. Additionally, the guidance requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this amendment. The guidance is effective for annual and interim periods beginning after December 15, 2015. The adoption of this guidance on January 1, 2016 did not materially impact the Company 's financial condition, results of operations, or liquidity. Accounting Pronouncements Pending Adoption Revenue from Contracts with Customers: In May of 2014, the FASB issued guidance that requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In March of 2016, the FASB issued an amendment to this guidance to clarify the implementation of guidance on principal versus agent consideration. Additional amendments to clarify the implementation guidance on the identification of performance obligations and licensing were issued in April of 2016 and narrow-scope improvements and practical expedients were issued in May of 2016. The guidance was initially effective for annual and interim reporting periods beginning on or after December 15, 2016. In August of 2015, the FASB issued guidance that defers the effective date by one year. The deferral causes the guidance to be effective for annual and interim reporting periods beginning on or after December 15, 2017, and must be applied either retrospectively or using the modified retrospective approach. Early adoption is permitted, but not before the original effective date. Management is evaluating the new guidance and the impact to the Company 's financial condition, results of operations, and liquidity. Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern: In August of 2014, the FASB issued guidance that requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. The guidance is effective for annual and interim periods beginning after December 15, 2016. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company 's financial condition, results of operations, or liquidity. Amendments to Guidance on Classifying and Measuring Financial Instruments: In January of 2016, the FASB issued guidance that will require entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value. Any changes in fair value will be recognized in net income unless the investments qualify for a new practicability exception. This guidance also requires entities to recognize changes in instrument-specific credit risk related to financial liabilities measured under the fair value option in other comprehensive income. No changes were made to the guidance for classifying and measuring investments in debt securities and loans. This guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company 's financial condition, results of operations, or liquidity. Leases: In February of 2016, the FASB issued guidance to increase transparency and comparability across entities for leasing arrangements. This guidance requires lessees to recognize assets and liabilities for most leases. For lessors, this guidance modifies the lease classification criteria and the accounting for sales-type and direct financing leases. In addition, this guidance clarifies criteria for the determination of whether a contract is or contains a lease. This guidance is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. Management is evaluating the new guidance and the impact to the Company 's financial condition, results of operations, and liquidity. Contingent Put and Call Options in Debt Instruments: In March of 2016, the FASB issued final guidance clarifying the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. Entities are required to apply the guidance to existing debt instruments (or hybrid financial instruments that are determined to have a debt host) using a modified retrospective transition method as of the period of adoption. This guidance is effective for annual and interim periods beginning after December 15, 2016. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company 's financial condition, results of operations, or liquidity. Equity Method Accounting: In March of 2016, the FASB issued final guidance to simplify the equity method of accounting. The guidance eliminates the requirement to retrospectively apply equity method accounting in previous periods when an investor initially obtains significant influence over an investee. This guidance is effective for annual and interim periods beginning after December 15, 2016. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company 's financial condition, results of operations, or liquidity. Accounting for Employee Share-based Payments: In March of 2016, the FASB issued guidance to simplify the accounting for employee share-based payment transactions. The guidance requires entities to recognize the income tax effects of awards in the income statement when the awards vest or are settled. In addition, the guidance allows entities to repurchase more of an employee's shares than it can under current guidance for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. This guidance is effective for annual and interim reporting periods beginning on or after December 15, 2016. Early adoption is permitted. Management is evaluating the new guidance, but does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Measurement of Credit Losses on Financial Instruments: In June of 2016, the FASB issued guidance that will require entities to present financial assets measured at amortized cost at the net amount expected to be collected, considering an entity's current estimate of all expected credit losses. In addition, credit losses relating to available-for-sale debt securities will be required to be recorded through an allowance for credit losses, with changes in credit loss estimates recognized through current earnings. This guidance is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted, but not for periods beginning before December 15, 2018. Management is evaluating the new guidance and the impact to the Company 's financial condition, results of operations, and liquidity. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Pending Acquisitions Standard Bancshares, Inc. On June 28, 2016, the Company entered into a definitive agreement to acquire Standard Bancshares, Inc. ("Standard"), the holding company for Standard Bank and Trust Company. With the acquisition, the Company would acquire 35 banking offices located primarily in the southwest Chicago suburbs and adjacent markets in northwest Indiana. Standard has total assets of approximately $2.5 billion with $2.2 billion in deposits and $1.8 billion in loans. The merger agreement provides for a fixed exchange ratio of 0.4350 shares of First Midwest common stock for each share of Standard common stock. As of the date of announcement, the overall transaction is valued at approximately $365 million , including Standard's common stock, stock options, phantom stock, and stock settled rights. The acquisition is expected to close in late 2016 or early 2017, subject to customary regulatory approvals and closing conditions, as well as Company and Standard shareholder approval. Completed Acquisitions NI Bancshares Corporation On March 8, 2016, the Company completed the acquisition of NI Bancshares Corporation (" NI Bancshares "), the holding company for The National Bank & Trust Company of Sycamore. As part of the acquisition, the Company acquired all assets and assumed all liabilities of NI Bancshares , which included ten banking offices in northern Illinois and over $700.0 million in trust assets under management. The merger consideration was a combination of Company common stock and cash, at a purchase price of $70.1 million . Goodwill of $20.8 million associated with the acquisition was recorded by the Company. The Company is finalizing the fair values of the assets and liabilities acquired. As a result, the fair value adjustments associated with these accounts and goodwill are preliminary and may change. Peoples Bancorp, Inc. On December 3, 2015, the Company completed the acquisition of Peoples Bancorp, Inc. (" Peoples "), and its wholly-owned banking subsidiary, The Peoples' Bank of Arlington Heights. With the acquisition, the Company acquired all assets and assumed all liabilities of Peoples , which included two banking offices in Arlington Heights, Illinois, at a purchase price of $16.8 million paid in cash. The Company recorded goodwill of $7.5 million associated with the acquisition. The Company is finalizing the fair values of the assets and liabilities acquired. As a result, the fair value adjustments associated with these accounts and goodwill are preliminary and may change. The following table presents the assets acquired and liabilities assumed, net of the fair value adjustments, in the NI Bancshares and Peoples transactions as of the acquisition date. The assets acquired and liabilities assumed, both intangible and tangible, were recorded at their estimated fair values as of the acquisition date and have been accounted for under the acquisition method of accounting. Acquisition Activity (Amounts in thousands, except share and per share data) NI Bancshares Peoples March 8, 2016 December 3, 2015 Assets Cash and due from banks and interest-bearing deposits in other banks $ 72,533 $ 781 Securities available-for-sale 125,843 41,492 Securities held-to-maturity 1,864 ā FHLB and FRB stock 1,549 558 Loans 397,018 53,917 OREO 2,863 515 Investment in BOLI 8,384 ā Goodwill 20,762 7,544 Other intangible assets 10,925 580 Premises, furniture, and equipment 20,019 2,215 Accrued interest receivable and other assets 16,004 2,911 Total assets $ 677,764 $ 110,513 Liabilities Noninterest-bearing deposits $ 130,909 $ 15,869 Interest-bearing deposits 464,012 75,944 Total deposits 594,921 91,813 Borrowed funds 2,416 1,200 Intangible liabilities 230 ā Accrued interest payable and other liabilities 10,115 672 Total liabilities 607,682 93,685 Consideration Paid Common stock (2016 - 3,042,494 shares issued at $18.059 per share), net of $48,000 in issuance costs 54,896 ā Cash paid 15,186 16,828 Total consideration paid 70,082 16,828 $ 677,764 $ 110,513 Expenses related to the acquisition and integration of the transactions above and pending transactions totaled $618,000 and $5.6 million during the quarter and six months ended June 30, 2016, respectively, and are reported as a separate component within noninterest expense in the Condensed Consolidated Statements of Income. The completed acquisitions were not considered material to the Company's financial statements; therefore, pro forma financial data and related disclosures are not included. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | SECURITIES Securities are classified as held-to-maturity, trading, or available-for-sale at the time of purchase. Securities classified as held-to-maturity are securities for which management has the intent and ability to hold to maturity and are stated at cost. The Company's trading securities consist of diversified investment securities reported at fair value that are held in a grantor trust under deferred compensation arrangements in which plan participants may direct amounts earned to be invested in securities other than Company stock. All other securities are classified as available-for-sale and are carried at fair value with unrealized gains and losses, net of related deferred income taxes, recorded in stockholders' equity as a separate component of accumulated other comprehensive loss. A summary of the Company's securities portfolio by category and maturity is presented in the following tables. Securities Portfolio (Dollar amounts in thousands) As of June 30, 2016 As of December 31, 2015 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Securities Available-for-Sale U.S. treasury securities $ 38,548 $ 341 $ ā $ 38,889 $ 17,000 $ 15 $ (35 ) $ 16,980 U.S. agency securities 196,735 2,580 (84 ) 199,231 86,461 351 (169 ) 86,643 Collateralized mortgage obligations ("CMOs") 908,550 13,239 (1,054 ) 920,735 695,198 1,072 (9,085 ) 687,185 Other mortgage-backed securities ("MBSs") 281,924 4,839 (106 ) 286,657 152,481 1,920 (871 ) 153,530 Municipal securities 286,547 8,046 (29 ) 294,564 321,437 6,443 (310 ) 327,570 Trust-preferred collateralized debt obligations ("CDOs") 48,219 32 (17,820 ) 30,431 48,287 34 (16,792 ) 31,529 Equity securities 3,290 83 (121 ) 3,252 3,282 86 (169 ) 3,199 Total securities available-for-sale $ 1,763,813 $ 29,160 $ (19,214 ) $ 1,773,759 $ 1,324,146 $ 9,921 $ (27,431 ) $ 1,306,636 Securities Held-to-Maturity Municipal securities $ 20,672 $ ā $ (2,278 ) $ 18,394 $ 23,152 $ ā $ (3,098 ) $ 20,054 Trading Securities $ 17,693 $ 16,894 Remaining Contractual Maturity of Securities (Dollar amounts in thousands) As of June 30, 2016 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 84,587 $ 83,558 $ 3,220 $ 2,865 After one year to five years 430,910 425,669 7,840 6,976 After five years to ten years 6,333 6,256 2,111 1,878 After ten years 48,219 47,632 7,501 6,675 Securities that do not have a single contractual maturity date 1,193,764 1,210,644 ā ā Total $ 1,763,813 $ 1,773,759 $ 20,672 $ 18,394 The carrying value of securities available-for-sale that were pledged to secure deposits or for other purposes as permitted or required by law totaled $1.1 billion at June 30, 2016 and $856.9 million at December 31, 2015 . No securities held-to-maturity were pledged as of June 30, 2016 or December 31, 2015 . Purchases and sales of securities are recognized on a trade date basis. Realized securities gains or losses are reported in net securities gains in the Condensed Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. During the quarters and six months ended June 30, 2016 and 2015 there were no material gross trading gains (losses). The following table presents net realized gains on securities available-for-sale for the quarters and six months ended June 30, 2016 and 2015 . Securities Available-for-Sale Gains (Dollar amounts in thousands) Quarters Ended Six Months Ended 2016 2015 2016 2015 Gains on sales of securities: Gross realized gains $ 149 $ 515 $ 1,079 $ 1,165 Gross realized losses (126 ) ā (169 ) (138 ) Net realized gains on sales of securities 23 515 910 1,027 Non-cash impairment charges: Other-than-temporary securities impairment ("OTTI") ā ā ā ā Net realized gains $ 23 $ 515 $ 910 $ 1,027 Accounting guidance requires that the credit portion of an OTTI charge be recognized through income. If a decline in fair value below carrying value is not attributable to credit deterioration and the Company does not intend to sell the security or believe it would not be more likely than not required to sell the security prior to recovery, the Company records the non-credit related portion of the decline in fair value in other comprehensive income. The following table presents a rollforward of life-to-date OTTI recognized in earnings related to all securities available-for-sale held by the Company for the quarters and six months ended June 30, 2016 and 2015 . The majority of the beginning and ending balance of OTTI relates to CDOs currently held by the Company . Changes in OTTI Recognized in Earnings (Dollar amounts in thousands) Quarters Ended Six Months Ended 2016 2015 2016 2015 Beginning balance $ 23,709 $ 23,709 $ 23,709 $ 23,880 OTTI included in earnings (1) : Reduction for sales of securities (2) ā ā ā (171 ) Ending balance $ 23,709 $ 23,709 $ 23,709 $ 23,709 (1) Included in net securities gains in the Condensed Consolidated Statements of Income. (2) This reduction was driven by the sale of one CMO with a carrying value of $1.3 million during the six months ended June 30, 2015. The following table presents the aggregate amount of unrealized losses and the aggregate related fair values of securities with unrealized losses as of June 30, 2016 and December 31, 2015 . Securities in an Unrealized Loss Position (Dollar amounts in thousands) Less Than 12 Months 12 Months or Longer Total Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses As of June 30, 2016 Securities Available-for-Sale U.S. agency securities 8 $ 17,500 $ 84 $ ā $ ā $ 17,500 $ 84 CMOs 31 24,763 113 89,507 941 114,270 1,054 MBSs 10 18,479 79 6,965 27 25,444 106 Municipal securities 10 3,171 18 1,012 11 4,183 29 CDOs 10 1,750 96 28,058 17,724 29,808 17,820 Equity securities 2 485 120 2,377 1 2,862 121 Total 71 $ 66,148 $ 510 $ 127,919 $ 18,704 $ 194,067 $ 19,214 Securities Held-To-Maturity Municipal securities 16 $ 18,394 $ 2,278 $ ā $ ā $ 18,394 $ 2,278 As of December 31, 2015 Securities Available-for-Sale U.S. treasury securities 4 $ 7,946 $ 35 $ ā $ ā $ 7,946 $ 35 U.S. agency securities 10 30,620 169 ā ā 30,620 169 CMOs 133 309,787 3,110 257,362 5,975 567,149 9,085 MBSs 27 63,028 427 31,980 444 95,008 871 Municipal securities 68 8,135 65 24,227 245 32,362 310 CDOs 8 8,034 971 21,642 15,821 29,676 16,792 Equity securities 2 485 120 2,305 49 2,790 169 Total 252 $ 428,035 $ 4,897 $ 337,516 $ 22,534 $ 765,551 $ 27,431 Securities Held-To-Maturity Municipal securities 19 $ 20,054 $ 3,098 $ ā $ ā $ 20,054 $ 3,098 Substantially all of the Company 's CMO s and other MBSs are either backed by U.S. government-owned agencies or issued by U.S. government-sponsored enterprises. Municipal securities are issued by municipal authorities, and the majority are supported by third party insurance or some other form of credit enhancement. Management does not believe any of these securities with unrealized losses as of June 30, 2016 represent OTTI related to credit deterioration. These unrealized losses are attributed to changes in interest rates and temporary market movements. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity. The unrealized losses on CDOs as of June 30, 2016 reflect changes in market activity for these securities. Management does not believe these unrealized losses represent OTTI related to credit deterioration. In addition, the Company does not intend to sell the CDOs with unrealized losses and the Company does not believe it is more likely than not that it will be required to sell them before recovery of their amortized cost basis, which may be at maturity. Significant judgment is required to calculate the fair value of the CDOs , all of which are pooled. For a detailed discussion of the CDO valuation methodology, see Note 13 , " Fair Value ." |
Loans
Loans | 6 Months Ended |
Jun. 30, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans | LOANS Loans Held-for-Investment The following table presents the Company 's loans held-for-investment by class. Loan Portfolio (Dollar amounts in thousands) As of June 30, December 31, Commercial and industrial $ 2,699,742 $ 2,524,726 Agricultural 401,858 387,440 Commercial real estate: Office, retail, and industrial 1,529,675 1,395,454 Multi-family 587,104 528,324 Construction 371,016 216,882 Other commercial real estate 1,000,655 931,190 Total commercial real estate 3,488,450 3,071,850 Total corporate loans 6,590,050 5,984,016 Home equity 722,881 653,468 1-4 family mortgages 415,581 355,854 Installment 223,845 137,602 Total consumer loans 1,362,307 1,146,924 Covered loans 27,180 30,775 Total loans $ 7,979,537 $ 7,161,715 Deferred loan fees included in total loans $ 4,359 $ 5,191 Overdrawn demand deposits included in total loans 4,480 2,810 The Company primarily lends to community-based and mid-sized businesses, commercial real estate customers, and consumers in its markets. Within these areas, the Company diversifies its loan portfolio by loan type, industry, and borrower. It is the Company 's policy to review each prospective credit to determine the appropriateness and the adequacy of security or collateral prior to making a loan. In the event of borrower default, the Company seeks recovery in compliance with state lending laws, the Company 's lending standards, and credit monitoring and remediation procedures. A discussion of risk characteristics relevant to each portfolio segment is presented in Note 5 , "Loans" to the Consolidated Financial Statements in the Company 's 2015 10-K. Loan Sales The following table presents loan sales for the quarters and six months ended June 30, 2016 and 2015 . Loan Sales (Dollar amounts in thousands) Quarters Ended Six Months Ended 2016 2015 2016 2015 Corporate loan sales Proceeds from sales $ 14,271 $ 4,138 $ 23,859 $ 9,423 Less book value of loans sold 13,760 3,864 22,890 9,009 Net gains on corporate loan sales (1) 511 274 969 414 1-4 family mortgage loan sales Proceeds from sales 53,258 53,445 92,765 89,027 Less book value of loans sold 52,089 51,949 90,769 86,445 Net gains on 1-4 family mortgage loan sales (2) 1,169 1,496 1,996 2,582 Total net gains on loan sales $ 1,680 $ 1,770 $ 2,965 $ 2,996 (1) Net gains on corporate loan sales are included in other service charges, commissions, and fees in the Condensed Consolidated Statements of Income. (2) Net gains on 1-4 family mortgage loan sales are included in mortgage banking income in the Condensed Consolidated Statements of Income. The Company retained servicing responsibilities for a portion of the 1-4 family mortgage loans sold and collects servicing fees equal to a percentage of the outstanding principal balance. The Company also retained limited recourse for credit losses on the sold 1-4 family mortgage loans. A description of the recourse obligation is presented in Note 12 , " Commitments, Guarantees, and Contingent Liabilities ." |
Acquired and Covered Loans
Acquired and Covered Loans | 6 Months Ended |
Jun. 30, 2016 | |
Acquired Loans [Abstract] | |
Acquired and Covered Loans | ACQUIRED AND COVERED LOANS The significant accounting policies related to acquired and covered loans, which are classified as PCI and Non-PCI , are presented in Note 1 , " Summary of Significant Accounting Policies ." The following table presents acquired and covered PCI and Non-PCI loans as of June 30, 2016 and December 31, 2015 . Acquired and Covered Loans (Dollar amounts in thousands) As of June 30, 2016 As of December 31, 2015 PCI Non-PCI Total PCI Non-PCI Total Acquired loans $ 69,404 $ 782,181 $ 851,585 $ 50,286 $ 534,506 $ 584,792 Covered loans 9,154 18,026 27,180 9,919 20,856 30,775 Total acquired and covered loans $ 78,558 $ 800,207 $ 878,765 $ 60,205 $ 555,362 $ 615,567 Acquired Non-PCI loans that are renewed are no longer classified as acquired loans. These loans totaled $98.3 million and $61.6 million as of June 30, 2016 and December 31, 2015 , respectively. In connection with the FDIC Agreements , the Company recorded an indemnification asset. To maintain eligibility for the loss share reimbursement, the Company is required to follow certain servicing procedures as specified in the FDIC Agreements . The Company was in compliance with those requirements as of June 30, 2016 and December 31, 2015 . Rollforwards of the carrying value of the FDIC indemnification asset for the quarters and six months ended June 30, 2016 and 2015 are presented in the following table. Changes in the FDIC Indemnification Asset (Dollar amounts in thousands) Quarters Ended Six Months Ended 2016 2015 2016 2015 Beginning balance $ 5,680 $ 8,540 $ 3,903 $ 8,452 Amortization (302 ) (395 ) (582 ) (853 ) Change in expected reimbursements from the FDIC for changes in expected credit losses (475 ) 786 (259 ) 1,720 Net payments to (from) the FDIC 268 (1,596 ) 2,109 (1,984 ) Ending balance $ 5,171 $ 7,335 $ 5,171 $ 7,335 Changes in the accretable yield for acquired and covered PCI loans were as follows. Changes in Accretable Yield (Dollar amounts in thousands) Quarters Ended Six Months Ended 2016 2015 2016 2015 Beginning balances $ 27,258 $ 26,420 $ 24,912 $ 28,244 Additions ā ā 3,981 ā Accretion (2,303 ) (4,335 ) (3,849 ) (6,998 ) Other (1) 127 (1,427 ) 38 (588 ) Ending balance $ 25,082 $ 20,658 $ 25,082 $ 20,658 (1) Increases represent a rise in the expected future cash flows to be collected over the remaining estimated life of the underlying portfolio while decreases result from the resolution of certain loans occurring earlier than anticipated. |
Past Due Loans, Allowance For C
Past Due Loans, Allowance For Credit Losses, Impaired Loans and TDRS | 6 Months Ended |
Jun. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Past Due Loans, Allowance For Credit Losses, Impaired Loans and TDRS | PAST DUE LOANS, ALLOWANCE FOR CREDIT LOSSES, IMPAIRED LOANS, AND TDRS Past Due and Non-accrual Loans The following table presents an aging analysis of the Company 's past due loans as of June 30, 2016 and December 31, 2015 . The aging is determined without regard to accrual status. The table also presents non-performing loans, consisting of non-accrual loans (the majority of which are past due) and loans 90 days or more past due and still accruing interest, as of each balance sheet date. Aging Analysis of Past Due Loans and Non-performing Loans by Class (Dollar amounts in thousands) Aging Analysis (Accruing and Non-accrual) Non-performing Loans Current 30-89 Days Past Due 90 Days or More Past Due Total Past Due Total Loans Non- accrual 90 Days or More Past Due, Still Accruing Interest As of June 30, 2016 Commercial and industrial $ 2,684,411 $ 10,162 $ 5,169 $ 15,331 $ 2,699,742 $ 6,303 $ 1,050 Agricultural 401,242 383 233 616 401,858 475 ā Commercial real estate: Office, retail, and industrial 1,516,265 4,677 8,733 13,410 1,529,675 16,815 34 Multi-family 584,040 2,566 498 3,064 587,104 321 354 Construction 370,596 47 373 420 371,016 360 20 Other commercial real estate 992,309 2,926 5,420 8,346 1,000,655 4,797 2,925 Total commercial real estate 3,463,210 10,216 15,024 25,240 3,488,450 22,293 3,333 Total corporate loans 6,548,863 20,761 20,426 41,187 6,590,050 29,071 4,383 Home equity 717,461 3,278 2,142 5,420 722,881 4,527 153 1-4 family mortgages 411,585 1,901 2,095 3,996 415,581 3,261 604 Installment 222,273 1,306 266 1,572 223,845 ā 266 Total consumer loans 1,351,319 6,485 4,503 10,988 1,362,307 7,788 1,023 Covered loans 26,204 681 295 976 27,180 453 ā Total loans $ 7,926,386 $ 27,927 $ 25,224 $ 53,151 $ 7,979,537 $ 37,312 $ 5,406 As of December 31, 2015 Commercial and industrial $ 2,516,197 $ 4,956 $ 3,573 $ 8,529 $ 2,524,726 $ 5,587 $ 857 Agricultural 387,109 245 86 331 387,440 355 ā Commercial real estate: Office, retail, and industrial 1,386,383 2,647 6,424 9,071 1,395,454 6,875 4 Multi-family 526,625 541 1,158 1,699 528,324 796 548 Construction 216,377 ā 505 505 216,882 905 ā Other commercial real estate 922,531 3,575 5,084 8,659 931,190 5,611 661 Total commercial real estate 3,051,916 6,763 13,171 19,934 3,071,850 14,187 1,213 Total corporate loans 5,955,222 11,964 16,830 28,794 5,984,016 20,129 2,070 Home equity 647,175 3,247 3,046 6,293 653,468 5,310 216 1-4 family mortgages 350,980 2,680 2,194 4,874 355,854 3,416 528 Installment 136,780 753 69 822 137,602 20 69 Total consumer loans 1,134,935 6,680 5,309 11,989 1,146,924 8,746 813 Covered loans 29,808 405 562 967 30,775 555 174 Total loans $ 7,119,965 $ 19,049 $ 22,701 $ 41,750 $ 7,161,715 $ 29,430 $ 3,057 Allowance for Credit Losses The Company maintains an allowance for credit losses at a level deemed adequate by management to absorb estimated losses inherent in the existing loan portfolio. See Note 1 , " Summary of Significant Accounting Policies ," for the accounting policy for the allowance for credit losses. A rollforward of the allowance for credit losses by portfolio segment for the quarters and six months ended June 30, 2016 and 2015 is presented in the table below. Allowance for Credit Losses by Portfolio Segment (Dollar amounts in thousands) Commercial, Industrial, and Agricultural Office, Retail, and Industrial Multi- family Construction Other Commercial Real Estate Consumer Covered Loans Reserve for Unfunded Commitments Total Allowance for Credit Losses Quarter ended June 30, 2016 Beginning balance $ 37,736 $ 14,412 $ 2,540 $ 2,433 $ 6,567 $ 11,894 $ 1,568 $ 1,225 $ 78,375 Charge-offs (2,026 ) (1,641 ) (84 ) (8 ) (879 ) (1,493 ) (2 ) ā (6,133 ) Recoveries 576 8 1 20 69 329 ā ā 1,003 Net charge-offs (1,450 ) (1,633 ) (83 ) 12 (810 ) (1,164 ) (2 ) ā (5,130 ) Provision for loan losses and other 3,798 206 469 (206 ) 1,717 2,273 (172 ) 175 8,260 Ending balance $ 40,084 $ 12,985 $ 2,926 $ 2,239 $ 7,474 $ 13,003 $ 1,394 $ 1,400 $ 81,505 Quarter ended June 30, 2015 Beginning balance $ 32,096 $ 10,831 $ 2,355 $ 2,076 $ 6,298 $ 11,655 $ 5,679 $ 1,816 $ 72,806 Charge-offs (4,127 ) (1,894 ) (469 ) (15 ) (527 ) (751 ) (323 ) ā (8,106 ) Recoveries 854 32 3 203 1,130 319 38 ā 2,579 Net charge-offs (3,273 ) (1,862 ) (466 ) 188 603 (432 ) (285 ) ā (5,527 ) Provision for loan losses and other 4,906 2,376 562 (374 ) (534 ) (403 ) (533 ) ā 6,000 Ending balance $ 33,729 $ 11,345 $ 2,451 $ 1,890 $ 6,367 $ 10,820 $ 4,861 $ 1,816 $ 73,279 Six months ended June 30, 2016 Beginning balance $ 37,074 $ 13,116 $ 2,462 $ 1,440 $ 6,088 $ 11,812 $ 1,638 $ 1,225 $ 74,855 Charge-offs (3,924 ) (2,165 ) (288 ) (134 ) (2,324 ) (2,485 ) (2 ) ā (11,322 ) Recoveries 1,078 111 26 35 220 649 ā ā 2,119 Net charge-offs (2,846 ) (2,054 ) (262 ) (99 ) (2,104 ) (1,836 ) (2 ) ā (9,203 ) Provision for loan losses and other 5,856 1,923 726 898 3,490 3,027 (242 ) 175 15,853 Ending balance $ 40,084 $ 12,985 $ 2,926 $ 2,239 $ 7,474 $ 13,003 $ 1,394 $ 1,400 $ 81,505 Six months ended June 30, 2015 Beginning balance $ 29,458 $ 10,992 $ 2,249 $ 2,297 $ 8,327 $ 12,145 $ 7,226 $ 1,816 $ 74,510 Charge-offs (11,576 ) (2,050 ) (497 ) (15 ) (1,844 ) (1,551 ) (626 ) ā (18,159 ) Recoveries 1,646 354 7 220 1,396 640 113 ā 4,376 Net charge-offs (9,930 ) (1,696 ) (490 ) 205 (448 ) (911 ) (513 ) ā (13,783 ) Provision for loan losses and other 14,201 2,049 692 (612 ) (1,512 ) (414 ) (1,852 ) ā 12,552 Ending balance $ 33,729 $ 11,345 $ 2,451 $ 1,890 $ 6,367 $ 10,820 $ 4,861 $ 1,816 $ 73,279 The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of June 30, 2016 and December 31, 2015 . Loans and Related Allowance for Credit Losses by Portfolio Segment (Dollar amounts in thousands) Loans Allowance for Credit Losses Individually Evaluated for Impairment Collectively Evaluated for Impairment PCI Total Individually Evaluated for Impairment Collectively Evaluated for Impairment PCI Total As of June 30, 2016 Commercial, industrial, and agricultural $ 3,755 $ 3,087,338 $ 10,507 $ 3,101,600 $ 198 $ 39,220 $ 666 $ 40,084 Commercial real estate: Office, retail, and industrial 15,742 1,500,762 13,171 1,529,675 2,086 9,517 1,382 12,985 Multi-family 399 574,031 12,674 587,104 ā 2,724 202 2,926 Construction 34 366,057 4,925 371,016 ā 2,088 151 2,239 Other commercial real estate 3,309 980,256 17,090 1,000,655 8 6,357 1,109 7,474 Total commercial real estate 19,484 3,421,106 47,860 3,488,450 2,094 20,686 2,844 25,624 Total corporate loans 23,239 6,508,444 58,367 6,590,050 2,292 59,906 3,510 65,708 Consumer ā 1,351,270 11,037 1,362,307 ā 12,476 527 13,003 Covered loans ā 18,026 9,154 27,180 ā 228 1,166 1,394 Reserve for unfunded commitments ā ā ā ā ā 1,400 ā 1,400 Total loans $ 23,239 $ 7,877,740 $ 78,558 $ 7,979,537 $ 2,292 $ 74,010 $ 5,203 $ 81,505 As of December 31, 2015 Commercial, industrial, and agricultural $ 2,871 $ 2,902,361 $ 6,934 $ 2,912,166 $ 883 $ 35,378 $ 813 $ 37,074 Commercial real estate: Office, retail, and industrial 6,162 1,376,789 12,503 1,395,454 715 10,833 1,568 13,116 Multi-family 800 526,037 1,487 528,324 ā 2,367 95 2,462 Construction 178 212,671 4,033 216,882 ā 1,160 280 1,440 Other commercial real estate 3,665 913,161 14,364 931,190 ā 5,367 721 6,088 Total commercial real estate 10,805 3,028,658 32,387 3,071,850 715 19,727 2,664 23,106 Total corporate loans 13,676 5,931,019 39,321 5,984,016 1,598 55,105 3,477 60,180 Consumer ā 1,135,959 10,965 1,146,924 ā 11,425 387 11,812 Covered loans ā 20,856 9,919 30,775 ā 248 1,390 1,638 Reserve for unfunded commitments ā ā ā ā ā 1,225 ā 1,225 Total loans $ 13,676 $ 7,087,834 $ 60,205 $ 7,161,715 $ 1,598 $ 68,003 $ 5,254 $ 74,855 Loans Individually Evaluated for Impairment The following table presents loans individually evaluated for impairment by class of loan as of June 30, 2016 and December 31, 2015 . PCI loans are excluded from this disclosure. Impaired Loans Individually Evaluated by Class (Dollar amounts in thousands) As of June 30, 2016 As of December 31, 2015 Recorded Investment In Recorded Investment In Loans with No Specific Reserve Loans with a Specific Reserve Unpaid Principal Balance Specific Reserve Loans with No Specific Reserve Loans with a Specific Reserve Unpaid Principal Balance Specific Reserve Commercial and industrial $ 1,909 $ 1,846 $ 5,873 $ 198 $ 1,673 $ 1,198 $ 4,592 $ 883 Agricultural ā ā ā ā ā ā ā ā Commercial real estate: Office, retail, and industrial 8,900 6,842 21,121 2,086 4,654 1,508 12,083 715 Multi-family 399 ā 399 ā 800 ā 941 ā Construction 34 ā 34 ā 178 ā 299 ā Other commercial real estate 3,039 270 4,740 8 3,665 ā 4,403 ā Total commercial real estate 12,372 7,112 26,294 2,094 9,297 1,508 17,726 715 Total impaired loans individually evaluated for impairment $ 14,281 $ 8,958 $ 32,167 $ 2,292 $ 10,970 $ 2,706 $ 22,318 $ 1,598 The following table presents the average recorded investment and interest income recognized on impaired loans by class for the quarters and six months ended June 30, 2016 and 2015 . PCI loans are excluded from this disclosure. Average Recorded Investment and Interest Income Recognized on Impaired Loans by Class (Dollar amounts in thousands) Quarters Ended June 30, 2016 2015 Average Interest Income Recognized (1) Average Interest Income Recognized (1) Commercial and industrial $ 3,236 $ 12 $ 9,277 $ 6 Agricultural ā ā ā ā Commercial real estate: Office, retail, and industrial 12,713 29 11,188 4 Multi-family 401 ā 866 1 Construction 34 ā 5,395 ā Other commercial real estate 3,641 53 2,822 8 Total commercial real estate 16,788 82 20,271 13 Total impaired loans $ 20,024 $ 94 $ 29,548 $ 19 Six Months Ended June 30, 2016 2015 Average Interest (1) Average Interest (1) Commercial and industrial $ 3,114 $ 50 $ 12,783 $ 76 Agricultural ā ā ā ā Commercial real estate: Office, retail, and industrial 10,529 77 11,570 33 Multi-family 534 1 890 1 Construction 82 ā 5,820 ā Other commercial real estate 3,649 72 2,970 19 Total commercial real estate 14,794 150 21,250 53 Total impaired loans $ 17,908 $ 200 $ 34,033 $ 129 (1) Recorded using the cash basis of accounting. Credit Quality Indicators Corporate loans and commitments are assessed for credit risk and assigned ratings based on various characteristics, such as the borrower's cash flow, leverage, and collateral. Ratings for commercial credits are reviewed periodically. The following tables present credit quality indicators by class for corporate and consumer loans, excluding covered loans, as of June 30, 2016 and December 31, 2015 . Corporate Credit Quality Indicators by Class, Excluding Covered Loans (Dollar amounts in thousands) Pass Special Mention (1) (4) Substandard (2) (4) Non-accrual (3) Total As of June 30, 2016 Commercial and industrial $ 2,511,957 $ 130,476 $ 51,006 $ 6,303 $ 2,699,742 Agricultural 366,283 17,130 17,970 475 401,858 Commercial real estate: Office, retail, and industrial 1,441,594 38,902 32,364 16,815 1,529,675 Multi-family 577,991 4,821 3,971 321 587,104 Construction 357,969 4,250 8,437 360 371,016 Other commercial real estate 966,607 12,123 17,128 4,797 1,000,655 Total commercial real estate 3,344,161 60,096 61,900 22,293 3,488,450 Total corporate loans $ 6,222,401 $ 207,702 $ 130,876 $ 29,071 $ 6,590,050 As of December 31, 2015 Commercial and industrial $ 2,379,992 $ 86,263 $ 52,884 $ 5,587 $ 2,524,726 Agricultural 381,523 ā 5,562 355 387,440 Commercial real estate: Office, retail, and industrial 1,320,164 32,627 35,788 6,875 1,395,454 Multi-family 517,412 6,146 3,970 796 528,324 Construction 201,496 4,678 9,803 905 216,882 Other commercial real estate 898,746 13,179 13,654 5,611 931,190 Total commercial real estate 2,937,818 56,630 63,215 14,187 3,071,850 Total corporate loans $ 5,699,333 $ 142,893 $ 121,661 $ 20,129 $ 5,984,016 (1) Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future. (2) Loans categorized as substandard exhibit well-defined weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time. (3) Loans categorized as non-accrual exhibit well-defined weaknesses that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected. (4) Total special mention and substandard loans includes accruing TDR s of $847,000 as of June 30, 2016 and $862,000 as of December 31, 2015 . Consumer Credit Quality Indicators by Class, Excluding Covered Loans (Dollar amounts in thousands) Performing Non-accrual Total As of June 30, 2016 Home equity $ 718,354 $ 4,527 $ 722,881 1-4 family mortgages 412,320 3,261 415,581 Installment 223,845 ā 223,845 Total consumer loans $ 1,354,519 $ 7,788 $ 1,362,307 As of December 31, 2015 Home equity $ 648,158 $ 5,310 $ 653,468 1-4 family mortgages 352,438 3,416 355,854 Installment 137,582 20 137,602 Total consumer loans $ 1,138,178 $ 8,746 $ 1,146,924 TDR s TDR s are generally performed at the request of the individual borrower and may include forgiveness of principal, reduction in interest rates, changes in payments, and maturity date extensions. The table below presents TDR s by class as of June 30, 2016 and December 31, 2015 . See Note 1, "Summary of Significant Accounting Policies," for the accounting policy for TDR s. TDR s by Class (Dollar amounts in thousands) As of June 30, 2016 As of December 31, 2015 Accruing Non-accrual (1) Total Accruing Non-accrual (1) Total Commercial and industrial $ 289 $ 286 $ 575 $ 294 $ 1,050 $ 1,344 Commercial real estate: Office, retail, and industrial 159 ā 159 164 ā 164 Multi-family 591 177 768 598 186 784 Other commercial real estate 329 ā 329 340 ā 340 Total commercial real estate 1,079 177 1,256 1,102 186 1,288 Total corporate loans 1,368 463 1,831 1,396 1,236 2,632 Home equity 286 826 1,112 494 667 1,161 1-4 family mortgages 837 401 1,238 853 421 1,274 Total consumer loans 1,123 1,227 2,350 1,347 1,088 2,435 Total loans $ 2,491 $ 1,690 $ 4,181 $ 2,743 $ 2,324 $ 5,067 (1) These TDR s are included in non-accrual loans in the preceding tables. TDR s are included in the calculation of the allowance for credit losses in the same manner as impaired loans. There were no specific reserves related to TDR s as of June 30, 2016 and there were $758,000 in specific reserves related to TDR s as of December 31, 2015 . No TDR s were restructured during the quarters and six months ended June 30, 2016 and 2015. Accruing TDR s that do not perform in accordance with their modified terms are transferred to non-accrual. There were no material TDR s that defaulted within twelve months of the restructure date during the quarters and six months ended June 30, 2016 and 2015 . A rollforward of the carrying value of TDR s for the quarters and six months ended June 30, 2016 and 2015 is presented in the following table. TDR Rollforward (Dollar amounts in thousands) Quarters Ended Six Months Ended 2016 2015 2016 2015 Accruing Beginning balance $ 2,702 $ 3,581 $ 2,743 $ 3,704 Net payments received (28 ) (349 ) (69 ) (391 ) Net transfers to non-accrual (183 ) (165 ) (183 ) (246 ) Ending balance 2,491 3,067 2,491 3,067 Non-accrual Beginning balance 2,268 1,996 2,324 19,904 Net payments received (522 ) (55 ) (578 ) (15,454 ) Charge-offs (239 ) (36 ) (239 ) (2,626 ) Net transfers from accruing 183 165 183 246 Ending balance 1,690 2,070 1,690 2,070 Total TDRs $ 4,181 $ 5,137 $ 4,181 $ 5,137 For TDR s to be removed from TDR status in the calendar year after the restructuring, the loans must (i) have an interest rate and terms that reflect market conditions at the time of restructuring, and (ii) be in compliance with the modified terms. Loans that were not restructured at market rates and terms, that are not in compliance with the modified terms, or for which there is a concern about the future ability of the borrower to meet its obligations under the modified terms, continue to be separately reported as restructured until paid in full or charged-off. There were no material commitments to lend additional funds to borrowers with TDR s as of June 30, 2016 and December 31, 2015 . |
Borrowed Funds
Borrowed Funds | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | BORROWED FUNDS The following table summarizes the Company 's borrowed funds by funding source. Summary of Borrowed Funds (Dollar amounts in thousands) As of June 30, December 31, Securities sold under agreements to repurchase $ 124,744 $ 155,196 FHLB advances 325,000 9,900 Total borrowed funds $ 449,744 $ 165,096 Securities sold under agreements to repurchase are treated as financings and the obligations to repurchase securities sold are included as a liability in the Consolidated Statements of Financial Condition. Repurchase agreements are secured by U.S. treasury and agency securities. The securities underlying the agreements remain in the respective asset accounts. The Bank is a member of the FHLB and has access to term financing from the FHLB . These advances are secured by designated assets that may include qualifying commercial real estate, residential and multi-family mortgages, home equity loans, and municipal and mortgage-backed securities. As of June 30, 2016 , the Company held various 3-month FHLB advances with fixed interest rates that range from 0.46% to 0.58% and maturity dates that range from August 1, 2016 to September 1, 2016. The Company hedges interest rates on borrowed funds using interest rate swaps through which the Company receives variable amounts and pays fixed amounts. See Note 11 "Derivative Instruments and Hedging Activities" for a detailed discussion of interest rate swaps. |
Senior and Subordinated Debt
Senior and Subordinated Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Senior and Subordinated Debt | SENIOR AND SUBORDINATED DEBT The following table presents the Company 's senior and subordinated debt by issuance. Senior and Subordinated Debt (Dollar amounts in thousands) As of Issuance Date Maturity Date Interest Rate June 30, 2016 December 31, 2015 Senior notes November 2011 November 2016 5.875% $ 114,952 $ 114,891 Subordinated notes March 2006 April 2016 5.850% ā 38,499 Junior subordinated debentures: First Midwest Capital Trust I ("FMCT") November 2003 December 2033 6.950% 37,799 37,799 Great Lakes Statutory Trust II ("GLST II") (1) December 2005 December 2035 L+1.400% (2) 4,344 4,296 Great Lakes Statutory Trust III ("GLST III") (1) June 2007 September 2037 L+1.700% (2) 5,781 5,723 Total junior subordinated debentures 47,924 47,818 Total senior and subordinated debt $ 162,876 $ 201,208 (1) The junior subordinated debentures related to GLST II and GLST III were assumed by the Company during 2014 through the acquisition of Great Lakes Financial Resources, Inc., the holding company for Great Lakes Bank. These amounts include acquisition adjustments which resulted in a discount of $1.8 million to GLST II and $2.5 million to GLST III as of June 30, 2016 and $1.9 million to GLST II and $2.5 million to GLST III as of December 31, 2015 . (2) The interest rates are a variable rate based on the three-month LIBOR plus 1.400% and 1.700% for GLST II and GLST III, respectively. On April 1, 2016, $38.5 million of 5.850% subordinated notes matured and were repaid by the Company . On November 22, 2016, $115.0 million of 5.875% senior notes will mature. Management is currently evaluating repayment strategies for the senior notes. Junior Subordinated Debentures FMCT , GLST II , and GLST III are Delaware statutory business trusts. These trusts were established for the purpose of issuing trust-preferred securities and lending the proceeds to the Company in return for junior subordinated debentures of the Company. The junior subordinated debentures are the sole assets of each trust. Therefore, each trust's ability to pay amounts due on the trust-preferred securities is solely dependent on the Company making payments on the related junior subordinated debentures. The trust-preferred securities are subject to mandatory redemption, in whole or in part, on repayment of the junior subordinated debentures at the stated maturity date or on redemption. The Company guarantees payments of distributions and redemptions on the trust-preferred securities on a limited basis. Trust-preferred securities are included in Tier 1 capital of the Company for regulatory capital purposes. The statutory trusts qualify as VIEs for which the Company is not the primary beneficiary. Consequently, the accounts of those entities are not consolidated in the Company's financial statements. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE The table below displays the calculation of basic and diluted earnings per common share (" EPS "). Basic and Diluted EPS (Amounts in thousands, except per share data) Quarters Ended Six Months Ended 2016 2015 2016 2015 Net income $ 25,267 $ 22,574 $ 43,229 $ 42,456 Net income applicable to non-vested restricted shares (290 ) (249 ) (502 ) (477 ) Net income applicable to common shares $ 24,977 $ 22,325 $ 42,727 $ 41,979 Weighted-average common shares outstanding: Weighted-average common shares outstanding (basic) 80,383 77,089 79,182 77,004 Dilutive effect of common stock equivalents 13 12 12 12 Weighted-average diluted common shares outstanding 80,396 77,101 79,194 77,016 Basic EPS $ 0.31 $ 0.29 $ 0.54 $ 0.55 Diluted EPS $ 0.31 $ 0.29 $ 0.54 $ 0.55 Anti-dilutive shares not included in the computation of diluted EPS (1) 469 768 539 857 (1) This amount represents outstanding stock options for which the exercise price is greater than the average market price of the Company's common stock. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES In the ordinary course of business, the Company enters into derivative transactions as part of its overall interest rate risk management strategy. The significant accounting policies related to derivative instruments and hedging activities are presented in Note 1, "Summary of Significant Accounting Policies." Fair Value Hedges The Company hedges the fair value of fixed rate commercial real estate loans using interest rate swaps through which the Company pays fixed amounts and receives variable amounts. These derivative contracts are designated as fair value hedges. Fair Value Hedges (Dollar amounts in thousands) As of June 30, 2016 December 31, 2015 Gross notional amount outstanding $ 11,016 $ 11,620 Derivative liability fair value (528 ) (643 ) Weighted-average interest rate received 2.37 % 2.25 % Weighted-average interest rate paid 6.35 % 6.36 % Weighted-average maturity (in years) 1.49 1.97 Fair value of derivative (1) $ 547 $ 665 (1) This amount represents the fair value if credit risk related contingent features were triggered. Hedge ineffectiveness is recognized in other noninterest income in the Condensed Consolidated Statements of Income. For the quarters and six months ended June 30, 2016 and 2015 , gains or losses related to fair value hedge ineffectiveness were not material. Cash Flow Hedges As of June 30, 2016 , the Company hedged $710.0 million of certain corporate variable rate loans using interest rate swaps through which the Company receives fixed amounts and pays variable amounts. The Company also hedged $710.0 million of borrowed funds using forward starting interest rate swaps through which the Company receives variable amounts and pays fixed amounts. These transactions allow the Company to add stability to net interest income and manage its exposure to interest rate movements. Forward starting interest rate swaps totaling $325.0 million began on various dates between June of 2015 and June of 2016, and mature between June and August of 2019. The remaining forward starting interest rate swaps begin at various dates between February of 2017 and May of 2018 and mature between February and May of 2020. These derivative contracts are designated as cash flow hedges. Cash Flow Hedges (Dollar amounts in thousands) As of June 30, 2016 December 31, 2015 Gross notional amount outstanding $ 1,420,000 $ 1,220,000 Derivative asset fair value 20,683 4,787 Derivative liability fair value (19,647 ) (8,950 ) Weighted-average interest rate received 1.28 % 1.24 % Weighted-average interest rate paid 1.01 % 0.75 % Weighted-average maturity (in years) 3.29 3.91 The effective portion of gains or losses on cash flow hedges is recorded in accumulated other comprehensive loss on an after-tax basis and is subsequently reclassified to interest income or expense in the period that the forecasted hedged item impacts earnings. Hedge effectiveness is determined using a regression analysis at the inception of the hedge relationship and on an ongoing basis. For the quarters and six months ended June 30, 2016 and 2015, there were no material gains or losses related to cash flow hedge ineffectiveness. As of June 30, 2016 , the Company estimates that $3.8 million will be reclassified from accumulated other comprehensive loss as an increase to interest income over the next twelve months. Other Derivative Instruments The Company also enters into derivative transactions with its commercial customers and simultaneously enters into offsetting interest rate derivative transactions with third parties. This transaction allows the Company's customers to effectively convert a variable rate loan into a fixed rate loan. Due to the offsetting nature of these transactions, the Company does not apply hedge accounting treatment. The Company's credit exposure on these derivative transactions results primarily from counterparty credit risk. The credit valuation adjustment (" CVA ") is a fair value adjustment to the derivative to account for this risk. As of June 30, 2016 and December 31, 2015 , the Company's credit exposure was fully secured by the underlying collateral on customer loans, therefore, no CVA was recorded. Transaction fees related to commercial customer derivative instruments of $2.1 million and $5.3 million were recorded in noninterest income for the quarter and six months ended June 30, 2016 , respectively. There were $818,000 and $1.5 million of transaction fees recorded for the quarter and six months ended June 30, 2015 , respectively. Other Derivative Instruments (Dollar amounts in thousands) As of June 30, 2016 December 31, 2015 Gross notional amount outstanding $ 1,242,040 $ 853,385 Derivative asset fair value 31,868 11,446 Derivative liability fair value (31,868 ) (11,446 ) Fair value of derivative (1) 32,426 11,939 (1) This amount represents the fair value if credit risk related contingent features were triggered. The Company occasionally enters into risk participation agreements with counterparty banks to transfer or assume a portion of the credit risk related to customer transactions. The amounts of these instruments were not material for any periods presented. The Company had no other derivative instruments as of June 30, 2016 and December 31, 2015 . The Company does not enter into derivative transactions for purely speculative purposes. Credit Risk Derivative instruments are inherently subject to credit risk, which represents the Company's risk of loss when the counterparty to a derivative contract fails to perform according to the terms of the agreement. Credit risk is managed by limiting and collateralizing the aggregate amount of net unrealized losses by transaction, monitoring the size and the maturity structure of the derivatives, and applying uniform credit standards. Company policy establishes limits on credit exposure to any single counterparty. In addition, the Company established bilateral collateral agreements with derivative counterparties that provide for exchanges of marketable securities or cash to collateralize either party's net losses above a stated minimum threshold. As of June 30, 2016 and December 31, 2015 , these collateral agreements covered 100% of the fair value of the Company's outstanding fair value hedges. Derivative assets and liabilities are presented gross, rather than net, of pledged collateral amounts. Certain derivative instruments are subject to master netting agreements with counterparties. The Company records these transactions at their gross fair values and does not offset derivative assets and liabilities in the Consolidated Statements of Financial Condition. The following table presents the fair value of the Company's derivatives and offsetting positions as of June 30, 2016 and December 31, 2015 . Fair Value of Offsetting Derivatives (Dollar amounts in thousands) As of June 30, 2016 As of December 31, 2015 Assets Liabilities Assets Liabilities Gross amounts recognized $ 52,551 $ 52,043 $ 16,233 $ 21,039 Less: amounts offset in the Consolidated Statements of Financial Condition ā ā ā ā Net amount presented in the Consolidated Statements of Financial Condition (1) 52,551 52,043 16,233 21,039 Gross amounts not offset in the Consolidated Statements of Financial Condition: Offsetting derivative positions (20,830 ) (20,830 ) (4,791 ) (4,791 ) Cash collateral pledged ā (31,213 ) ā (16,248 ) Net credit exposure $ 31,721 $ ā $ 11,442 $ ā (1) Included in other assets or other liabilities in the Consolidated Statements of Financial Condition. As of June 30, 2016 and December 31, 2015 , the Company's derivative instruments generally contained provisions that require the Company's debt to remain above a certain credit rating by each of the major credit rating agencies or that the Company maintain certain capital levels. If the Company's debt were to fall below that credit rating or the Company's capital were to fall below the required levels, it would be in violation of those provisions, and the counterparties to the derivative instruments could terminate the swap transaction and demand cash settlement of the derivative instrument in an amount equal to the derivative liability fair value. As of June 30, 2016 and December 31, 2015 the Company was in compliance with these provisions. |
Commitments, Guarantees, and Co
Commitments, Guarantees, and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Guarantees, and Contingent Liabilities | COMMITMENTS, GUARANTEES, AND CONTINGENT LIABILITIES Credit Commitments and Guarantees In the normal course of business, the Company enters into a variety of financial instruments with off-balance sheet risk to meet the financing needs of its customers and to conduct lending activities, including commitments to extend credit and standby and commercial letters of credit. These instruments involve elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. Contractual or Notional Amounts of Financial Instruments (Dollar amounts in thousands) As of June 30, December 31, Commitments to extend credit: Commercial, industrial, and agricultural $ 1,393,434 $ 1,303,056 Commercial real estate 361,156 366,250 Home equity 381,022 352,114 Other commitments (1) 213,437 203,121 Total commitments to extend credit $ 2,349,049 $ 2,224,541 Letters of credit $ 104,933 $ 100,610 Recourse on assets sold: Unpaid principal balance of loans sold $ 190,294 $ 196,389 Carrying value of recourse obligation (2) 179 87 (1) Other commitments includes installment and overdraft protection program commitments. (2) Included in other liabilities in the Consolidated Statements of Financial Condition. Commitments to extend credit are agreements to lend funds to a customer, subject to contractual terms and covenants. Commitments generally have fixed expiration dates or other termination clauses, variable interest rates, and fee requirements, when applicable. Since many of the commitments are expected to expire without being drawn, the total commitment amounts do not necessarily represent future cash flow requirements. In the event of a customer's non-performance, the Company's credit loss exposure is equal to the contractual amount of the commitments. The credit risk is essentially the same as extending loans to customers. The Company uses the same credit policies for credit commitments as its loans and minimizes exposure to credit loss through various collateral requirements. Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Letters of credit generally are contingent on the failure of the customer to perform according to the terms of the contract with the third party and are often issued in favor of a municipality where construction is taking place to ensure the borrower adequately completes the construction. Commercial letters of credit are issued to facilitate transactions between a customer and a third party based on agreed upon terms. The maximum potential future payments guaranteed by the Company under letters of credit arrangements are equal to the contractual amount of the commitment. If a commitment is funded, the Company may seek recourse through the liquidation of the underlying collateral, including real estate, production plants and property, marketable securities, or receipt of cash. As a result of the sale of certain 1-4 family mortgage loans, the Company is contractually obligated to repurchase any non-performing loans or loans that do not meet underwriting requirements at recorded value. In accordance with the sales agreements, there is no limitation to the maximum potential future payments or expiration of the Company's recourse obligation. There were no material loan repurchases during the quarters and six months ended June 30, 2016 and 2015 . Legal Proceedings In the ordinary course of business, there were certain legal proceedings pending against the Company and its subsidiaries at June 30, 2016 . While the outcome of any legal proceeding is inherently uncertain, based on information currently available, the Company's management does not expect that any liabilities arising from pending legal matters will have a material adverse effect on the Company's financial position, results of operations, or cash flows. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE Fair value represents the amount expected to be received to sell an asset or paid to transfer a liability in its principal or most advantageous market in an orderly transaction between market participants at the measurement date. In accordance with fair value accounting guidance, the Company measures, records, and reports various types of assets and liabilities at fair value on either a recurring or non-recurring basis in the Consolidated Statements of Financial Condition. Those assets and liabilities are presented below in the sections titled "Assets and Liabilities Required to be Measured at Fair Value on a Recurring Basis" and "Assets and Liabilities Required to be Measured at Fair Value on a Non-Recurring Basis." Other assets and liabilities are not required to be measured at fair value in the Consolidated Statements of Financial Condition, but must be disclosed at fair value. See the "Fair Value Measurements of Other Financial Instruments" section of this note. Any aggregation of the estimated fair values presented in this note does not represent the value of the Company. Depending on the nature of the asset or liability, the Company uses various valuation methodologies and assumptions to estimate fair value. GAAP provides a three-tiered fair value hierarchy based on the inputs used to measure fair value. The hierarchy is defined as follows: ā¢ Level 1 - Quoted prices in active markets for identical assets or liabilities. ā¢ Level 2 - Observable inputs other than level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. ā¢ Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs require significant management judgment or estimation, some of which use model-based techniques and may be internally developed. Assets and liabilities are assigned to a level within the fair value hierarchy based on the lowest level of significant input used to measure fair value. Assets and liabilities may change levels within the fair value hierarchy due to market conditions or other circumstances. Those transfers are recognized on the date of the event that prompted the transfer. There were no transfers of assets or liabilities between levels of the fair value hierarchy during the periods presented. Assets and Liabilities Required to be Measured at Fair Value on a Recurring Basis The following table provides the fair value for assets and liabilities required to be measured at fair value on a recurring basis in the Consolidated Statements of Financial Condition by level in the fair value hierarchy. Recurring Fair Value Measurements (Dollar amounts in thousands) As of June 30, 2016 As of December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Trading securities: Money market funds $ 1,517 $ ā $ ā $ 2,530 $ ā $ ā Mutual funds 16,176 ā ā 14,364 ā ā Total trading securities 17,693 ā ā 16,894 ā ā Securities available-for-sale: U.S. treasury securities 38,889 ā ā 16,980 ā ā U.S. agency securities ā 199,231 ā ā 86,643 ā CMOs ā 920,735 ā ā 687,185 ā MBSs ā 286,657 ā ā 153,530 ā Municipal securities ā 294,564 ā ā 327,570 ā CDOs ā ā 30,431 ā ā 31,529 Equity securities ā 3,252 ā ā 3,199 ā Total securities available-for-sale 38,889 1,704,439 30,431 16,980 1,258,127 31,529 Mortgage servicing rights ("MSRs") (1) ā ā 4,938 ā ā 1,853 Derivative assets (1) ā 52,551 ā ā 16,233 ā Liabilities: Derivative liabilities (2) $ ā $ 52,043 $ ā $ ā $ 21,039 $ ā (1) Included in other assets in the Consolidated Statements of Financial Condition. (2) Included in other liabilities in the Consolidated Statements of Financial Condition. The following sections describe the specific valuation techniques and inputs used to measure financial assets and liabilities at fair value. Trading Securities The Company's trading securities consist of diversified investment securities held in a grantor trust and are invested in money market and mutual funds. The fair value of these money market and mutual funds is based on quoted market prices in active exchange markets and is classified in level 1 of the fair value hierarchy. Securities Available-for-Sale The Company's securities available-for-sale are primarily fixed income instruments that are not quoted on an exchange, but may be traded in active markets. The fair values for these securities are based on quoted prices in active markets or market prices for similar securities obtained from external pricing services or dealer market participants and are classified in level 2 of the fair value hierarchy. The fair value of U.S. treasury securities is based on quoted market prices in active exchange markets and is classified in level 1 of the fair value hierarchy. Quarterly, the Company evaluates the methodologies used by its external pricing services to estimate the fair value of these securities to determine whether the valuations represent an exit price in the Company's principal markets. CDOs are classified in level 3 of the fair value hierarchy. The Company estimates the fair values for each CDO using discounted cash flow analyses with the assistance of a structured credit valuation firm. This methodology is based on credit analysis and historical financial data for each of the issuers underlying the CDOs (the "Issuers"). These estimates are highly subjective and sensitive to several significant, unobservable inputs. The cash flows for each Issuer are then discounted to present values using LIBOR plus an adjustment to reflect the impact of market factors. Finally, the discounted cash flows for each Issuer are aggregated to derive the estimated fair value for the specific CDO . The following table presents the ranges of significant, unobservable inputs calculated using the weighted average of the Issuers used by the Company as of June 30, 2016 and December 31, 2015. Significant Unobservable Inputs Used in the Valuation of CDOs As of June 30, 2016 December 31, 2015 Probability of prepayment 1.8 % - 15.1% 1.8 % - 15.1% Probability of default 18.7 % - 49.7% 19.1 % - 32.6% Loss given default 92.8 % - 98.4% 93.8 % - 97.1% Probability of deferral cure 20.6 % - 100.0% 15.2 % - 63.1% Most Issuers have the right to prepay the securities on the fifth anniversary of issuance and under other limited circumstances. To estimate prepayments, a credit analysis of each Issuer is performed to estimate its ability and likelihood to fund a prepayment. If a prepayment occurs, the Company receives cash equal to the par value for the portion of the CDO associated with that Issuer. The likelihood that an Issuer who is currently deferring payment on the securities will pay all deferred amounts and remain current thereafter is based on an analysis of the Issuer's asset quality, leverage ratios, and other measures of financial viability. The impact of changes in these key inputs could result in a significantly higher or lower fair value measurement for each CDO . The timing of the default, the magnitude of the default, and the timing and magnitude of the cure probability are directly interrelated. Defaults that occur sooner and/or are greater than anticipated have a negative impact on the valuation. In addition, a high cure probability assumption has a positive effect on the fair value, and, if a cure event takes place sooner than anticipated, the impact on the valuation is also favorable. Management monitors the valuation results of each CDO on a semi-annual basis, which includes an analysis of historical pricing trends for these types of securities, overall economic conditions (such as tracking LIBOR curves), and the performance of the Issuers' industries. Annually, management validates significant assumptions by reviewing detailed back-testing performed by the structured credit valuation firm. A rollforward of the carrying value of CDOs for the quarters and six months ended June 30, 2016 and 2015 is presented in the following table. Carrying Value of CDOs (Dollar amounts in thousands) Quarters Ended Six Months Ended 2016 2015 2016 2015 Beginning balance $ 30,757 $ 33,928 $ 31,529 $ 33,774 Change in other comprehensive income (1) (244 ) (1,798 ) (1,030 ) (1,498 ) Paydowns (82 ) (126 ) (68 ) (272 ) Ending balance $ 30,431 $ 32,004 $ 30,431 $ 32,004 (1) Included in unrealized holding gains in the Consolidated Statements of Comprehensive Income. MSR s The Company services loans for others totaling $603.0 million as of June 30, 2016 and $242.9 million as of December 31, 2015 . As of June 30, 2016, loans serviced for others includes approximately $339.1 million of loans, the servicing of which transitioned from NI Bancshares to the Company as a result of the acquisition. These loans are owned by third parties and are not included in the Consolidated Statements of Financial Condition. Additional information regarding the NI Bancshares transaction is presented in Note 3 , "Acquisitions." The Company determines the fair value of MSR s by estimating the present value of expected future cash flows associated with the mortgage loans being serviced and classifies them in level 3 of the fair value hierarchy. The following table presents the ranges of significant, unobservable inputs used by the Company to determine the fair value of MSR s as of June 30, 2016 . Significant Unobservable Inputs Used in the Valuation of MSR s As of June 30, 2016 December 31, 2015 Prepayment speed 9.1 % - 28.0% 10.1 % - 20.9% Maturity (months) 2 - 85 6 - 86 Discount rate 9.5 % - 13.0% 9.5 % - 13.0% The impact of changes in these key inputs could result in a significantly higher or lower fair value measurement for MSR s. Significant increases in expected prepayment speeds and discount rates have negative impacts on the valuation. Higher maturity assumptions have a favorable effect on the estimated fair value. A rollforward of the carrying value of MSR s for the quarters and six months ended June 30, 2016 and 2015 is presented in the following table. Carrying Value of MSR s (Dollar amounts in thousands) Quarters Ended Six Months Ended 2016 2015 2016 2015 Beginning balance $ 5,022 $ 1,773 $ 1,853 $ 1,728 Additions from acquisition ā ā 3,092 ā New MSRs 162 98 347 243 (Losses) gains included in earnings (1) : Changes in valuation inputs and assumptions (132 ) 12 (172 ) (39 ) Other changes in fair value (2) (114 ) (63 ) (182 ) (112 ) Ending balance $ 4,938 $ 1,820 $ 4,938 $ 1,820 Contractual servicing fees earned (1) $ 366 $ 135 $ 549 $ 268 (1) Included in mortgage banking income in the Condensed Consolidated Statements of Income and related to assets held as of June 30, 2016 and 2015 . (2) Primarily represents changes in expected future cash flows due to payoffs and paydowns. Derivative Assets and Derivative Liabilities The Company enters into interest rate swaps and derivative transactions with commercial customers. These derivative transactions are executed in the dealer market, and pricing is based on market quotes obtained from the counterparties. The market quotes were developed using market observable inputs, which primarily include LIBOR. Therefore, derivatives are classified in level 2 of the fair value hierarchy. For its derivative assets and liabilities, the Company also considers non-performance risk, including the likelihood of default by itself and its counterparties, when evaluating whether the market quotes from the counterparty are representative of an exit price. Assets and Liabilities Required to be Measured at Fair Value on a Non-Recurring Basis The following table provides the fair value for each class of assets and liabilities required to be measured at fair value on a non-recurring basis in the Consolidated Statements of Financial Condition by level in the fair value hierarchy. Non-Recurring Fair Value Measurements (Dollar amounts in thousands) As of June 30, 2016 As of December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Collateral-dependent impaired loans (1) $ ā $ ā $ 11,260 $ ā $ ā $ 10,519 OREO (2) ā ā 2,160 ā ā 8,581 Loans held-for-sale (3) ā ā 18,144 ā ā 14,444 Assets held-for-sale (4) ā ā 4,851 ā ā 7,428 (1) Includes impaired loans with charge-offs and impaired loans with a specific reserve during the periods presented. (2) Includes OREO with fair value adjustments subsequent to initial transfer that occurred during the periods presented. (3) Included in other assets in the Consolidated Statements of Financial Condition. (4) Included in premises, furniture, and equipment in the Consolidated Statements of Financial Condition. Collateral-Dependent Impaired Loans Certain collateral-dependent impaired loans are subject to fair value adjustments to reflect the difference between the carrying value of the loan and the value of the underlying collateral. The fair values of collateral-dependent impaired loans are primarily determined by current appraised values of the underlying collateral. Based on the age and/or type, appraisals may be adjusted in the range of 0% to 15% . In certain cases, an internal valuation may be used when the underlying collateral is located in areas where comparable sales data is limited or unavailable. Accordingly, collateral-dependent impaired loans are classified in level 3 of the fair value hierarchy. Collateral-dependent impaired loans for which the fair value is greater than the recorded investment are not measured at fair value in the Consolidated Statements of Financial Condition and are not included in this disclosure. OREO The fair value of OREO is measured using the current appraised value of the properties. In certain circumstances, a current appraisal may not be available or may not represent an accurate measurement of the property's fair value due to outdated market information or other factors. In these cases, the fair value is determined based on the lower of the (i) most recent appraised value, (ii) broker price opinion, (iii) current listing price, or (iv) signed sales contract. Given these valuation methods, OREO is classified in level 3 of the fair value hierarchy. Loans Held-for-Sale As of June 30, 2016 , loans held-for-sale consists of 1-4 family mortgage loans, which were originated with the intent to sell. These loans were recorded in the held-for-sale category at the contract price and, accordingly, are classified in level 3 of the fair value hierarchy. As of December 31, 2015 , loans held-for-sale consists of 1-4 family mortgage loans, which were originated with the intent to sell, and a commercial real estate loan. Assets Held-for-Sale Assets held-for-sale as of June 30, 2016 and December 31, 2015 consists of former branches that are no longer in operation and parcels of land previously purchased for expansion. These properties are being actively marketed and were transferred into the held-for-sale category at their fair value as determined by current appraisals. Based on these valuation methods, they are classified in level 3 of the fair value hierarchy. Financial Instruments Not Required to be Measured at Fair Value For certain financial instruments that are not required to be measured at fair value in the Consolidated Statements of Financial Condition, the Company must disclose the estimated fair values and the level within the fair value hierarchy as shown in the following table. Fair Value Measurements of Other Financial Instruments (Dollar amounts in thousands) As of June 30, 2016 December 31, 2015 Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and due from banks 1 $ 149,957 $ 149,957 $ 114,587 $ 114,587 Interest-bearing deposits in other banks 2 105,432 105,432 266,615 266,615 Securities held-to-maturity 2 20,672 18,394 23,152 20,054 FHLB and FRB stock 2 44,506 44,506 39,306 39,306 Loans 3 7,905,390 7,846,563 7,091,988 6,959,024 Investment in BOLI 3 218,133 218,133 209,601 209,601 Accrued interest receivable 3 30,167 30,167 27,847 27,847 Other interest-earning assets 3 1,307 1,307 1,982 1,982 Liabilities: Deposits 2 $ 8,971,316 $ 8,973,012 $ 8,097,738 $ 8,093,640 Borrowed funds 2 449,744 449,744 165,096 165,096 Senior and subordinated debt 1 162,876 164,753 201,208 205,726 Accrued interest payable 2 2,309 2,309 2,175 2,175 Management uses various methodologies and assumptions to determine the estimated fair values of the financial instruments in the table above. The fair value estimates are made at a discrete point in time based on relevant market information and consider management's judgments regarding future expected economic conditions, loss experience, and specific risk characteristics of the financial instruments. Short-Term Financial Assets and Liabilities - For financial instruments with a shorter-term or with no stated maturity, prevailing market rates, and limited credit risk, the carrying amounts approximate fair value. Those financial instruments include cash and due from banks, interest-bearing deposits in other banks, accrued interest receivable, and accrued interest payable. Securities Held-to-Maturity - The fair value of securities held-to-maturity is estimated using the present value of expected future cash flows of the remaining maturities of the securities. FHLB and FRB Stock - The carrying amounts approximate fair value as the stock is non-marketable. Loans - Loans includes the FDIC indemnification asset and net loans, which consists of loans held-for-investment, acquired loans, covered loans, and the allowance for loan losses. The fair value of loans is estimated using the present value of the expected future cash flows of the remaining maturities of the loans. Prepayment assumptions that consider the Company's historical experience and current economic and lending conditions were included. The discount rate was based on the LIBOR yield curve with adjustments for liquidity and credit risk inherent in the loans. The fair value of the covered loan portfolio is determined by discounting the expected future cash flows at a market interest rate, which is derived from LIBOR swap rates over the life of those loans. The expected future cash flows are derived from the contractual terms of the covered loans, net of any projected credit losses. For valuation purposes, these loans are placed into groups with similar characteristics and risk factors, where appropriate. The timing and amount of credit losses for each group are estimated using historical default and loss experience, current collateral valuations, borrower credit scores, and internal risk ratings. For individually significant loans or credit relationships, the estimated fair value is determined by a specific loan level review utilizing appraised values for collateral and projections of the timing and amount of expected future cash flows. Investment in BOLI - The fair value of BOLI approximates the carrying amount as both are based on each policy's respective cash surrender value ("CSV"), which is the amount the Company would receive from the liquidation of these investments. The CSV is derived from monthly reports provided by the managing brokers and is determined using the Company 's initial insurance premium and earnings of the underlying assets, offset by management fees. Other Interest-Earning Assets - The fair value of other interest-earning assets is estimated using the present value of the expected future cash flows of the remaining maturities of the assets. Deposits - The fair values disclosed for demand deposits, savings deposits, NOW accounts, and money market deposits are equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The fair value for fixed-rate time deposits was estimated using the expected future cash flows discounted based on the LIBOR yield curve, plus or minus the spread associated with current pricing. Borrowed Funds - The fair value of FHLB advances is estimated by discounting the agreements based on maturities using the rates currently offered for FHLB advances of similar remaining maturities adjusted for prepayment penalties that would be incurred if the borrowings were paid off on the measurement date. The carrying amounts of securities sold under agreements to repurchase approximate their fair value due to their short-term nature. Senior and Subordinated Debt - The fair value of senior and subordinated debt is determined using quoted market prices. Commitments to Extend Credit and Letters of Credit - The Company estimated the fair value of lending commitments outstanding to be immaterial based on (i) the limited interest rate exposure of the commitments outstanding due to their variable nature, (ii) the short-term nature of the commitment periods, (iii) termination clauses provided in the agreements, and (iv) the market rate of fees charged. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation ā The accompanying unaudited condensed consolidated interim financial statements ("consolidated financial statements") of First Midwest Bancorp, Inc. (the " Company "), a Delaware corporation, were prepared in accordance with the rules and regulations of the Securities and Exchange Commission (" SEC ") for quarterly reports on Form 10-Q and reflect all adjustments that management deems necessary for the fair presentation of the financial position and results of operations for the periods presented. The results of operations for the quarter and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles (" GAAP ") and general practices within the banking industry. The accompanying consolidated financial statements do not include certain information and note disclosures required by GAAP for complete annual financial statements. Therefore, these financial statements should be read in conjunction with the Company 's 2015 Annual Report on Form 10-K (" 2015 10-K"). The Company uses the accrual basis of accounting for financial reporting purposes. |
Reclassification | Certain reclassifications were made to prior year amounts to conform to the current year presentation. |
Use of Estimates | Use of Estimates ā The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates and assumptions are based on the best available information, actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation ā The accompanying consolidated financial statements include the financial position and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. Assets held in a fiduciary or agency capacity are not assets of the Company or its subsidiaries and are not included in the consolidated financial statements. |
Business Combinations | Business Combinations ā Business combinations are accounted for under the acquisition method of accounting. Assets acquired and liabilities assumed are recorded at their estimated fair values as of the date of acquisition, with any excess of the purchase price of the acquisition over the fair value of the identifiable net tangible and intangible assets acquired recorded as goodwill. Alternatively, a gain is recorded if the fair value of assets purchased exceeds the fair value of liabilities assumed and consideration paid. The results of operations of the acquired business are included in the Condensed Consolidated Statements of Income from the effective date of the acquisition. |
Loans | Loans ā Loans held-for-investment are loans that the Company intends to hold until they are paid in full and are carried at the principal amount outstanding, including certain net deferred loan origination fees. Loan origination fees, commitment fees, and certain direct loan origination costs are deferred, and the net amount is amortized as a yield adjustment over the contractual life of the related loans or commitments and included in interest income. Fees related to standby letters of credit are amortized into fee income over the contractual life of the commitment. Other credit-related fees are recognized as fee income when earned. The Company 's net investment in direct financing leases is included in loans and consists of future minimum lease payments and estimated residual values, net of unearned income. Interest income on loans is accrued based on principal amounts outstanding. Loans held-for-sale are carried at the lower of aggregate cost or fair value and included in other assets in the Consolidated Statements of Financial Condition. |
Acquired and Covered Loans | Acquired and Covered Loans ā Covered loans consists of loans acquired by the Company in Federal Deposit Insurance Corporation (" FDIC ")-assisted transactions, which are covered by loss share agreements with the FDIC (the " FDIC Agreements "), under which the FDIC reimburses the Company for the majority of the losses and eligible expenses related to these assets during the coverage period. Acquired loans consist of all other loans that were acquired in business combinations that are not covered by the FDIC Agreements. Covered loans and acquired loans are included within loans held-for-investment. Acquired and covered loans are separated into (i) non-purchased credit impaired (" Non-PCI ") and (ii) purchased credit impaired (" PCI ") loans. Non-PCI loans include loans that did not have evidence of credit deterioration since origination at the acquisition date. PCI loans include loans that had evidence of credit deterioration since origination and for which it was probable at acquisition that the Company would not collect all contractually required principal and interest payments. Evidence of credit deterioration was evaluated using various indicators, such as past due and non-accrual status. Leases and revolving loans do not qualify to be accounted for as PCI loans and are accounted for as Non-PCI loans. The acquisition adjustment related to Non-PCI loans is amortized into interest income over the contractual life of the related loans. If an acquired Non-PCI loan is renewed subsequent to the acquisition date, any remaining acquisition adjustment is accreted into interest income and the loan is considered a new loan that is no longer classified as an acquired loan. PCI loans are accounted for based on estimates of expected future cash flows. To estimate the fair value, the Company generally aggregates purchased consumer loans and certain smaller balance commercial loans into pools of loans with common risk characteristics, such as delinquency status, credit score, and internal risk ratings. The fair values of larger balance commercial loans are estimated on an individual basis. Expected future cash flows in excess of the fair value of loans at the purchase date ("accretable yield") are recorded as interest income over the life of the loans if the timing and amount of the expected future cash flows can be reasonably estimated. The non-accretable yield represents the difference between contractually required payments and the expected future cash flows determined at acquisition. Subsequent increases in expected future cash flows are offset against the allowance for credit losses to the extent an allowance has been established or otherwise recognized as interest income prospectively. The present value of any decreases in expected future cash flows is recognized by recording a charge-off through the allowance for loan losses or providing an allowance for loan losses. |
90-Days Past Due Loans | 90-Days Past Due Loans āThe Company 's accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is sufficiently collateralized and in the process of renewal or collection. |
Non-accrual Loans | Non-accrual Loans ā Generally, corporate loans are placed on non-accrual status (i) when either principal or interest payments become 90 days or more past due unless the credit is sufficiently collateralized and in the process of renewal or collection, or (ii) when an individual analysis of a borrower's creditworthiness warrants a downgrade to non-accrual regardless of past due status. When a loan is placed on non-accrual status, unpaid interest credited to income in the current year is reversed, and unpaid interest accrued in prior years is charged against the allowance for loan losses. After the loan is placed on non-accrual status, all debt service payments are applied to the principal on the loan. Future interest income may only be recorded on a cash basis after recovery of principal is reasonably assured. Non-accrual loans are returned to accrual status when the financial position of the borrower and other relevant factors indicate that the Company will collect all principal and interest. Commercial loans and loans secured by real estate are charged-off when deemed uncollectible. A loss is recorded if the net realizable value of the underlying collateral is less than the outstanding principal and interest. Consumer loans that are not secured by real estate are subject to mandatory charge-off at a specified delinquency date and are usually not classified as non-accrual prior to being charged-off. Closed-end consumer loans, which include installment, automobile, and single payment loans, are usually charged-off no later than the end of the month in which the loan becomes 120 days past due. PCI loans are generally considered accruing loans unless reasonable estimates of the timing and amount of expected future cash flows cannot be determined. Loans without reasonable future cash flow estimates are classified as non-accrual loans, and interest income is not recognized on those loans until the timing and amount of the expected future cash flows can be reasonably determined. |
Troubled Debt Restructurings (āTDRsā) | Troubled Debt Restructurings ( " TDR s" ) ā A restructuring is considered a TDR when (i) the borrower is experiencing financial difficulties, and (ii) the creditor grants a concession, such as forgiveness of principal, reduction of the interest rate, changes in payments, or extension of the maturity date. Loans are not classified as TDR s when the modification is short-term or results in an insignificant delay in payments. The Company 's TDR s are determined on a case-by-case basis. The Company does not accrue interest on a TDR unless it believes collection of all principal and interest under the modified terms is reasonably assured. For a TDR to begin accruing interest, the borrower must demonstrate some level of past performance and the future capacity to perform under the modified terms. Generally, six months of consecutive payment performance under the restructured terms is required before a TDR is returned to accrual status. However, the period could vary depending on the individual facts and circumstances of the loan. An evaluation of the borrower's current creditworthiness is used to assess the borrower's capacity to repay the loan under the modified terms. This evaluation includes an estimate of expected future cash flows, evidence of strong financial position, and estimates of the value of collateral, if applicable. For TDR s to be removed from TDR status in the calendar year after the restructuring, the loans must (i) have an interest rate and terms that reflect market conditions at the time of restructuring, and (ii) be in compliance with the modified terms. If the loan was restructured at below market rates and terms, it continues to be separately reported as restructured until it is paid in full or charged-off. |
Impaired Loans | Impaired Loans ā Impaired loans consist of corporate non-accrual loans and TDR s. A loan is considered impaired when it is probable that the Company will not collect all contractual principal and interest. With the exception of accruing TDR s, impaired loans are classified as non-accrual and are exclusive of smaller homogeneous loans, such as home equity, 1-4 family mortgages, and installment loans. Impaired loans with balances under a specified threshold are not individually evaluated for impairment. For all other impaired loans, impairment is measured by comparing the estimated value of the loan to the recorded book value. The value of collateral-dependent loans is based on the fair value of the underlying collateral, less costs to sell. The value of other loans is measured using the present value of expected future cash flows discounted at the loan's initial effective interest rate. |
Allowance for Credit Losses | Allowance for Credit Losses ā The allowance for credit losses is comprised of the allowance for loan losses and the reserve for unfunded commitments, and is maintained by management at a level believed adequate to absorb estimated losses inherent in the existing loan portfolio. Determination of the allowance for credit losses is subjective since it requires significant estimates and management judgment, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans, consideration of current economic trends, and other factors. Loans deemed to be uncollectible are charged-off against the allowance for loan losses, while recoveries of amounts previously charged-off are credited to the allowance for loan losses. Additions to the allowance for loan losses are charged to expense through the provision for loan losses. The amount of provision depends on a number of factors, including net charge-off levels, loan growth, changes in the composition of the loan portfolio, and the Company 's assessment of the allowance for loan losses based on the methodology discussed below. Allowance for Loan Losses ā The allowance for loan losses consists of (i) specific reserves for individual loans where the recorded investment exceeds the value, (ii) an allowance based on a loss migration analysis that uses historical credit loss experience for each loan category, and (iii) an allowance based on other internal and external qualitative factors. The specific reserves component of the allowance for loan losses is based on a periodic analysis of impaired loans exceeding a fixed dollar amount. If the value of an impaired loan is less than the recorded book value, the Company either establishes a valuation allowance (i.e., a specific reserve) equal to the excess of the book value over the value of the loan as a component of the allowance for loan losses or charges off the amount if it is a confirmed loss. The general reserve component is based on a loss migration analysis, which examines actual loss experience by loan category for a rolling 8-quarter period and the related internal risk rating for corporate loans. The loss migration analysis is updated quarterly primarily using actual loss experience. This component is then adjusted based on management's consideration of many internal and external qualitative factors, including: ā¢ Changes in the composition of the loan portfolio, trends in the volume of loans, and trends in delinquent and non-accrual loans that could indicate that historical trends do not reflect current conditions. ā¢ Changes in credit policies and procedures, such as underwriting standards and collection, charge-off, and recovery practices. ā¢ Changes in the experience, ability, and depth of credit management and other relevant staff. ā¢ Changes in the quality of the Company 's loan review system and Board of Directors oversight. ā¢ The effect of any concentration of credit and changes in the level of concentrations, such as loan type or risk rating. ā¢ Changes in the value of the underlying collateral for collateral-dependent loans. ā¢ Changes in the national and local economy that affect the collectability of various segments of the portfolio. ā¢ The effect of other external factors, such as competition and legal and regulatory requirements, on the Company 's loan portfolio. The allowance for loan losses also consists of an allowance on acquired and covered Non-PCI and PCI loans. No allowance for loan losses is recorded on acquired loans at the acquisition date. Subsequent to the acquisition date, an allowance for credit losses is established as necessary to reflect credit deterioration. The acquired Non-PCI allowance is based on management's evaluation of the acquired Non-PCI loan portfolio giving consideration to the current portfolio balance including the remaining acquisition adjustments, maturity dates, and overall credit quality. The allowance for covered Non-PCI loans is calculated in the same manner as the general reserve component based on a loss migration analysis as discussed above. The acquired and covered PCI allowance reflects the difference between the carrying value and the discounted expected future cash flows of the acquired and covered PCI loans. On a periodic basis, the adequacy of this allowance is determined through a re-estimation of expected future cash flows on all of the outstanding acquired and covered PCI loans using either a probability of default/loss given default (" PD/LGD ") methodology or a specific review methodology. The PD/LGD model is a loss model that estimates expected future cash flows using a probability of default curve and loss given default estimates. Acquired Non-PCI loans that have renewed subsequent to the respective acquisition dates are no longer classified as acquired loans. Instead, they are included in the general loan population and allocated an allowance based on a loss migration analysis. Reserve for Unfunded Commitments ā The Company also maintains a reserve for unfunded commitments, including letters of credit, for the risk of loss inherent in these arrangements. The reserve for unfunded commitments is estimated using the loss migration analysis from the allowance for loan losses, adjusted for probabilities of future funding requirements. The reserve for unfunded commitments is included in other liabilities in the Consolidated Statements of Financial Condition. The establishment of the allowance for credit losses involves a high degree of judgment given the difficulty of assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the adequacy of the allowance for credit losses depends on a variety of factors beyond the Company 's control, including the performance of its loan portfolio, the economy, changes in interest rates and property values, and the interpretation of loan risk classifications by regulatory authorities. |
Derivative Financial Instruments | Derivative Financial Instruments ā To provide derivative products to customers and in the ordinary course of business, the Company enters into derivative transactions as part of its overall interest rate risk management strategy to minimize significant unplanned fluctuations in earnings and expected future cash flows caused by interest rate volatility. All derivative instruments are recorded at fair value as either other assets or other liabilities in the Consolidated Statements of Financial Condition. Subsequent changes in a derivative's fair value are recognized in earnings unless specific hedge accounting criteria are met. On the date the Company enters into a derivative contract, the derivative is designated as a fair value hedge, a cash flow hedge, or a non-hedge derivative instrument. Fair value hedges are designed to mitigate exposure to changes in the fair value of an asset or liability attributable to a particular risk, such as interest rate risk. Cash flow hedges are designed to mitigate exposure to variability in expected future cash flows to be received or paid related to an asset, liability, or other type of forecasted transaction. The Company formally documents all relationships between hedging instruments and hedged items, including its risk management objective and strategy at inception. At the hedge's inception and quarterly thereafter, a formal assessment is performed to determine the effectiveness of the derivative in offsetting changes in the fair values or expected future cash flows of the hedged items in the current period and prospectively. If a derivative instrument designated as a hedge is terminated or ceases to be highly effective, hedge accounting is discontinued prospectively, and the gain or loss is amortized into earnings. For fair value hedges, the gain or loss is amortized over the remaining life of the hedged asset or liability. For cash flow hedges, the gain or loss is amortized over the same period that the forecasted hedged transactions impact earnings. If the hedged item is disposed of, any fair value adjustments are included in the gain or loss from the disposition of the hedged item. If the forecasted transaction is no longer probable, the gain or loss is included in earnings immediately. For fair value hedges, changes in the fair value of the derivative instruments, as well as changes in the fair value of the hedged item, are recognized in earnings. For cash flow hedges, the effective portion of the change in fair value of the derivative instrument is reported as a component of accumulated other comprehensive loss and is reclassified to earnings when the hedged transaction is reflected in earnings. Ineffectiveness is calculated based on the change in fair value of the hedged item compared with the change in fair value of the hedging instrument. For all types of hedges, any ineffectiveness in the hedging relationship is recognized in earnings during the period the ineffectiveness occurs. |
Recent Accounting Pronouncements | Adopted Accounting Pronouncements Amendments to Consolidation Analysis: In February 2015, the Financial Accounting Standards Board (" FASB ") issued guidance that updates current accounting for the consolidation of certain legal entities. This guidance modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, affects the consolidation analysis of reporting entities that are involved with VIEs, and provides certain exceptions from consolidation guidance for certain reporting entities. This guidance is effective for annual and interim periods beginning after December 15, 2015. The adoption of this guidance on January 1, 2016 did not materially impact the Company 's financial condition, results of operations, or liquidity. Simplifying the Presentation of Debt Issuance Costs: In April of 2015, the FASB issued guidance to clarify the presentation of debt issuance costs within the balance sheet. Additionally, the guidance requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this amendment. The guidance is effective for annual and interim periods beginning after December 15, 2015. The adoption of this guidance on January 1, 2016 did not materially impact the Company 's financial condition, results of operations, or liquidity. Accounting Pronouncements Pending Adoption Revenue from Contracts with Customers: In May of 2014, the FASB issued guidance that requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In March of 2016, the FASB issued an amendment to this guidance to clarify the implementation of guidance on principal versus agent consideration. Additional amendments to clarify the implementation guidance on the identification of performance obligations and licensing were issued in April of 2016 and narrow-scope improvements and practical expedients were issued in May of 2016. The guidance was initially effective for annual and interim reporting periods beginning on or after December 15, 2016. In August of 2015, the FASB issued guidance that defers the effective date by one year. The deferral causes the guidance to be effective for annual and interim reporting periods beginning on or after December 15, 2017, and must be applied either retrospectively or using the modified retrospective approach. Early adoption is permitted, but not before the original effective date. Management is evaluating the new guidance and the impact to the Company 's financial condition, results of operations, and liquidity. Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern: In August of 2014, the FASB issued guidance that requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. The guidance is effective for annual and interim periods beginning after December 15, 2016. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company 's financial condition, results of operations, or liquidity. Amendments to Guidance on Classifying and Measuring Financial Instruments: In January of 2016, the FASB issued guidance that will require entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value. Any changes in fair value will be recognized in net income unless the investments qualify for a new practicability exception. This guidance also requires entities to recognize changes in instrument-specific credit risk related to financial liabilities measured under the fair value option in other comprehensive income. No changes were made to the guidance for classifying and measuring investments in debt securities and loans. This guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company 's financial condition, results of operations, or liquidity. Leases: In February of 2016, the FASB issued guidance to increase transparency and comparability across entities for leasing arrangements. This guidance requires lessees to recognize assets and liabilities for most leases. For lessors, this guidance modifies the lease classification criteria and the accounting for sales-type and direct financing leases. In addition, this guidance clarifies criteria for the determination of whether a contract is or contains a lease. This guidance is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. Management is evaluating the new guidance and the impact to the Company 's financial condition, results of operations, and liquidity. Contingent Put and Call Options in Debt Instruments: In March of 2016, the FASB issued final guidance clarifying the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. Entities are required to apply the guidance to existing debt instruments (or hybrid financial instruments that are determined to have a debt host) using a modified retrospective transition method as of the period of adoption. This guidance is effective for annual and interim periods beginning after December 15, 2016. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company 's financial condition, results of operations, or liquidity. Equity Method Accounting: In March of 2016, the FASB issued final guidance to simplify the equity method of accounting. The guidance eliminates the requirement to retrospectively apply equity method accounting in previous periods when an investor initially obtains significant influence over an investee. This guidance is effective for annual and interim periods beginning after December 15, 2016. Early adoption is permitted. Management does not expect the adoption of this guidance will materially impact the Company 's financial condition, results of operations, or liquidity. Accounting for Employee Share-based Payments: In March of 2016, the FASB issued guidance to simplify the accounting for employee share-based payment transactions. The guidance requires entities to recognize the income tax effects of awards in the income statement when the awards vest or are settled. In addition, the guidance allows entities to repurchase more of an employee's shares than it can under current guidance for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. This guidance is effective for annual and interim reporting periods beginning on or after December 15, 2016. Early adoption is permitted. Management is evaluating the new guidance, but does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Measurement of Credit Losses on Financial Instruments: In June of 2016, the FASB issued guidance that will require entities to present financial assets measured at amortized cost at the net amount expected to be collected, considering an entity's current estimate of all expected credit losses. In addition, credit losses relating to available-for-sale debt securities will be required to be recorded through an allowance for credit losses, with changes in credit loss estimates recognized through current earnings. This guidance is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted, but not for periods beginning before December 15, 2018. Management is evaluating the new guidance and the impact to the Company 's financial condition, results of operations, and liquidity. |
Acquisitions - (Tables)
Acquisitions - (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition activity | The following table presents the assets acquired and liabilities assumed, net of the fair value adjustments, in the NI Bancshares and Peoples transactions as of the acquisition date. The assets acquired and liabilities assumed, both intangible and tangible, were recorded at their estimated fair values as of the acquisition date and have been accounted for under the acquisition method of accounting. Acquisition Activity (Amounts in thousands, except share and per share data) NI Bancshares Peoples March 8, 2016 December 3, 2015 Assets Cash and due from banks and interest-bearing deposits in other banks $ 72,533 $ 781 Securities available-for-sale 125,843 41,492 Securities held-to-maturity 1,864 ā FHLB and FRB stock 1,549 558 Loans 397,018 53,917 OREO 2,863 515 Investment in BOLI 8,384 ā Goodwill 20,762 7,544 Other intangible assets 10,925 580 Premises, furniture, and equipment 20,019 2,215 Accrued interest receivable and other assets 16,004 2,911 Total assets $ 677,764 $ 110,513 Liabilities Noninterest-bearing deposits $ 130,909 $ 15,869 Interest-bearing deposits 464,012 75,944 Total deposits 594,921 91,813 Borrowed funds 2,416 1,200 Intangible liabilities 230 ā Accrued interest payable and other liabilities 10,115 672 Total liabilities 607,682 93,685 Consideration Paid Common stock (2016 - 3,042,494 shares issued at $18.059 per share), net of $48,000 in issuance costs 54,896 ā Cash paid 15,186 16,828 Total consideration paid 70,082 16,828 $ 677,764 $ 110,513 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | A summary of the Company's securities portfolio by category and maturity is presented in the following tables. Securities Portfolio (Dollar amounts in thousands) As of June 30, 2016 As of December 31, 2015 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Securities Available-for-Sale U.S. treasury securities $ 38,548 $ 341 $ ā $ 38,889 $ 17,000 $ 15 $ (35 ) $ 16,980 U.S. agency securities 196,735 2,580 (84 ) 199,231 86,461 351 (169 ) 86,643 Collateralized mortgage obligations ("CMOs") 908,550 13,239 (1,054 ) 920,735 695,198 1,072 (9,085 ) 687,185 Other mortgage-backed securities ("MBSs") 281,924 4,839 (106 ) 286,657 152,481 1,920 (871 ) 153,530 Municipal securities 286,547 8,046 (29 ) 294,564 321,437 6,443 (310 ) 327,570 Trust-preferred collateralized debt obligations ("CDOs") 48,219 32 (17,820 ) 30,431 48,287 34 (16,792 ) 31,529 Equity securities 3,290 83 (121 ) 3,252 3,282 86 (169 ) 3,199 Total securities available-for-sale $ 1,763,813 $ 29,160 $ (19,214 ) $ 1,773,759 $ 1,324,146 $ 9,921 $ (27,431 ) $ 1,306,636 Securities Held-to-Maturity Municipal securities $ 20,672 $ ā $ (2,278 ) $ 18,394 $ 23,152 $ ā $ (3,098 ) $ 20,054 Trading Securities $ 17,693 $ 16,894 |
Investments Classified by Contractual Maturity Date | Remaining Contractual Maturity of Securities (Dollar amounts in thousands) As of June 30, 2016 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 84,587 $ 83,558 $ 3,220 $ 2,865 After one year to five years 430,910 425,669 7,840 6,976 After five years to ten years 6,333 6,256 2,111 1,878 After ten years 48,219 47,632 7,501 6,675 Securities that do not have a single contractual maturity date 1,193,764 1,210,644 ā ā Total $ 1,763,813 $ 1,773,759 $ 20,672 $ 18,394 |
Realized Gain (Loss) on Investments | The following table presents net realized gains on securities available-for-sale for the quarters and six months ended June 30, 2016 and 2015 . Securities Available-for-Sale Gains (Dollar amounts in thousands) Quarters Ended Six Months Ended 2016 2015 2016 2015 Gains on sales of securities: Gross realized gains $ 149 $ 515 $ 1,079 $ 1,165 Gross realized losses (126 ) ā (169 ) (138 ) Net realized gains on sales of securities 23 515 910 1,027 Non-cash impairment charges: Other-than-temporary securities impairment ("OTTI") ā ā ā ā Net realized gains $ 23 $ 515 $ 910 $ 1,027 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | The following table presents a rollforward of life-to-date OTTI recognized in earnings related to all securities available-for-sale held by the Company for the quarters and six months ended June 30, 2016 and 2015 . The majority of the beginning and ending balance of OTTI relates to CDOs currently held by the Company . Changes in OTTI Recognized in Earnings (Dollar amounts in thousands) Quarters Ended Six Months Ended 2016 2015 2016 2015 Beginning balance $ 23,709 $ 23,709 $ 23,709 $ 23,880 OTTI included in earnings (1) : Reduction for sales of securities (2) ā ā ā (171 ) Ending balance $ 23,709 $ 23,709 $ 23,709 $ 23,709 (1) Included in net securities gains in the Condensed Consolidated Statements of Income. (2) This reduction was driven by the sale of one CMO with a carrying value of $1.3 million during the six months ended June 30, 2015. |
Unrealized Gain (Loss) on Investments | The following table presents the aggregate amount of unrealized losses and the aggregate related fair values of securities with unrealized losses as of June 30, 2016 and December 31, 2015 . Securities in an Unrealized Loss Position (Dollar amounts in thousands) Less Than 12 Months 12 Months or Longer Total Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses As of June 30, 2016 Securities Available-for-Sale U.S. agency securities 8 $ 17,500 $ 84 $ ā $ ā $ 17,500 $ 84 CMOs 31 24,763 113 89,507 941 114,270 1,054 MBSs 10 18,479 79 6,965 27 25,444 106 Municipal securities 10 3,171 18 1,012 11 4,183 29 CDOs 10 1,750 96 28,058 17,724 29,808 17,820 Equity securities 2 485 120 2,377 1 2,862 121 Total 71 $ 66,148 $ 510 $ 127,919 $ 18,704 $ 194,067 $ 19,214 Securities Held-To-Maturity Municipal securities 16 $ 18,394 $ 2,278 $ ā $ ā $ 18,394 $ 2,278 As of December 31, 2015 Securities Available-for-Sale U.S. treasury securities 4 $ 7,946 $ 35 $ ā $ ā $ 7,946 $ 35 U.S. agency securities 10 30,620 169 ā ā 30,620 169 CMOs 133 309,787 3,110 257,362 5,975 567,149 9,085 MBSs 27 63,028 427 31,980 444 95,008 871 Municipal securities 68 8,135 65 24,227 245 32,362 310 CDOs 8 8,034 971 21,642 15,821 29,676 16,792 Equity securities 2 485 120 2,305 49 2,790 169 Total 252 $ 428,035 $ 4,897 $ 337,516 $ 22,534 $ 765,551 $ 27,431 Securities Held-To-Maturity Municipal securities 19 $ 20,054 $ 3,098 $ ā $ ā $ 20,054 $ 3,098 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Composition Of Loan Portfolio | The following table presents the Company 's loans held-for-investment by class. Loan Portfolio (Dollar amounts in thousands) As of June 30, December 31, Commercial and industrial $ 2,699,742 $ 2,524,726 Agricultural 401,858 387,440 Commercial real estate: Office, retail, and industrial 1,529,675 1,395,454 Multi-family 587,104 528,324 Construction 371,016 216,882 Other commercial real estate 1,000,655 931,190 Total commercial real estate 3,488,450 3,071,850 Total corporate loans 6,590,050 5,984,016 Home equity 722,881 653,468 1-4 family mortgages 415,581 355,854 Installment 223,845 137,602 Total consumer loans 1,362,307 1,146,924 Covered loans 27,180 30,775 Total loans $ 7,979,537 $ 7,161,715 Deferred loan fees included in total loans $ 4,359 $ 5,191 Overdrawn demand deposits included in total loans 4,480 2,810 |
Schedule Of Loans Sold | The following table presents loan sales for the quarters and six months ended June 30, 2016 and 2015 . Loan Sales (Dollar amounts in thousands) Quarters Ended Six Months Ended 2016 2015 2016 2015 Corporate loan sales Proceeds from sales $ 14,271 $ 4,138 $ 23,859 $ 9,423 Less book value of loans sold 13,760 3,864 22,890 9,009 Net gains on corporate loan sales (1) 511 274 969 414 1-4 family mortgage loan sales Proceeds from sales 53,258 53,445 92,765 89,027 Less book value of loans sold 52,089 51,949 90,769 86,445 Net gains on 1-4 family mortgage loan sales (2) 1,169 1,496 1,996 2,582 Total net gains on loan sales $ 1,680 $ 1,770 $ 2,965 $ 2,996 (1) Net gains on corporate loan sales are included in other service charges, commissions, and fees in the Condensed Consolidated Statements of Income. (2) Net gains on 1-4 family mortgage loan sales are included in mortgage banking income in the Condensed Consolidated Statements of Income. |
Acquired and Covered Loans (Tab
Acquired and Covered Loans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Acquired Loans [Abstract] | |
Acquired Loans | The following table presents acquired and covered PCI and Non-PCI loans as of June 30, 2016 and December 31, 2015 . Acquired and Covered Loans (Dollar amounts in thousands) As of June 30, 2016 As of December 31, 2015 PCI Non-PCI Total PCI Non-PCI Total Acquired loans $ 69,404 $ 782,181 $ 851,585 $ 50,286 $ 534,506 $ 584,792 Covered loans 9,154 18,026 27,180 9,919 20,856 30,775 Total acquired and covered loans $ 78,558 $ 800,207 $ 878,765 $ 60,205 $ 555,362 $ 615,567 |
FDIC Indemnification Asset Roll Forward | Rollforwards of the carrying value of the FDIC indemnification asset for the quarters and six months ended June 30, 2016 and 2015 are presented in the following table. Changes in the FDIC Indemnification Asset (Dollar amounts in thousands) Quarters Ended Six Months Ended 2016 2015 2016 2015 Beginning balance $ 5,680 $ 8,540 $ 3,903 $ 8,452 Amortization (302 ) (395 ) (582 ) (853 ) Change in expected reimbursements from the FDIC for changes in expected credit losses (475 ) 786 (259 ) 1,720 Net payments to (from) the FDIC 268 (1,596 ) 2,109 (1,984 ) Ending balance $ 5,171 $ 7,335 $ 5,171 $ 7,335 |
Schedule Of Changes In Accretable Yield For Purchased Credit Impaired Loans | Changes in the accretable yield for acquired and covered PCI loans were as follows. Changes in Accretable Yield (Dollar amounts in thousands) Quarters Ended Six Months Ended 2016 2015 2016 2015 Beginning balances $ 27,258 $ 26,420 $ 24,912 $ 28,244 Additions ā ā 3,981 ā Accretion (2,303 ) (4,335 ) (3,849 ) (6,998 ) Other (1) 127 (1,427 ) 38 (588 ) Ending balance $ 25,082 $ 20,658 $ 25,082 $ 20,658 (1) Increases represent a rise in the expected future cash flows to be collected over the remaining estimated life of the underlying portfolio while decreases result from the resolution of certain loans occurring earlier than anticipated. |
Past Due Loans, Allowance For27
Past Due Loans, Allowance For Credit Losses, Impaired Loans and TDRS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Past Due Financing Receivables | The following table presents an aging analysis of the Company 's past due loans as of June 30, 2016 and December 31, 2015 . The aging is determined without regard to accrual status. The table also presents non-performing loans, consisting of non-accrual loans (the majority of which are past due) and loans 90 days or more past due and still accruing interest, as of each balance sheet date. Aging Analysis of Past Due Loans and Non-performing Loans by Class (Dollar amounts in thousands) Aging Analysis (Accruing and Non-accrual) Non-performing Loans Current 30-89 Days Past Due 90 Days or More Past Due Total Past Due Total Loans Non- accrual 90 Days or More Past Due, Still Accruing Interest As of June 30, 2016 Commercial and industrial $ 2,684,411 $ 10,162 $ 5,169 $ 15,331 $ 2,699,742 $ 6,303 $ 1,050 Agricultural 401,242 383 233 616 401,858 475 ā Commercial real estate: Office, retail, and industrial 1,516,265 4,677 8,733 13,410 1,529,675 16,815 34 Multi-family 584,040 2,566 498 3,064 587,104 321 354 Construction 370,596 47 373 420 371,016 360 20 Other commercial real estate 992,309 2,926 5,420 8,346 1,000,655 4,797 2,925 Total commercial real estate 3,463,210 10,216 15,024 25,240 3,488,450 22,293 3,333 Total corporate loans 6,548,863 20,761 20,426 41,187 6,590,050 29,071 4,383 Home equity 717,461 3,278 2,142 5,420 722,881 4,527 153 1-4 family mortgages 411,585 1,901 2,095 3,996 415,581 3,261 604 Installment 222,273 1,306 266 1,572 223,845 ā 266 Total consumer loans 1,351,319 6,485 4,503 10,988 1,362,307 7,788 1,023 Covered loans 26,204 681 295 976 27,180 453 ā Total loans $ 7,926,386 $ 27,927 $ 25,224 $ 53,151 $ 7,979,537 $ 37,312 $ 5,406 As of December 31, 2015 Commercial and industrial $ 2,516,197 $ 4,956 $ 3,573 $ 8,529 $ 2,524,726 $ 5,587 $ 857 Agricultural 387,109 245 86 331 387,440 355 ā Commercial real estate: Office, retail, and industrial 1,386,383 2,647 6,424 9,071 1,395,454 6,875 4 Multi-family 526,625 541 1,158 1,699 528,324 796 548 Construction 216,377 ā 505 505 216,882 905 ā Other commercial real estate 922,531 3,575 5,084 8,659 931,190 5,611 661 Total commercial real estate 3,051,916 6,763 13,171 19,934 3,071,850 14,187 1,213 Total corporate loans 5,955,222 11,964 16,830 28,794 5,984,016 20,129 2,070 Home equity 647,175 3,247 3,046 6,293 653,468 5,310 216 1-4 family mortgages 350,980 2,680 2,194 4,874 355,854 3,416 528 Installment 136,780 753 69 822 137,602 20 69 Total consumer loans 1,134,935 6,680 5,309 11,989 1,146,924 8,746 813 Covered loans 29,808 405 562 967 30,775 555 174 Total loans $ 7,119,965 $ 19,049 $ 22,701 $ 41,750 $ 7,161,715 $ 29,430 $ 3,057 |
Allowance for Credit Losses on Financing Receivables | A rollforward of the allowance for credit losses by portfolio segment for the quarters and six months ended June 30, 2016 and 2015 is presented in the table below. Allowance for Credit Losses by Portfolio Segment (Dollar amounts in thousands) Commercial, Industrial, and Agricultural Office, Retail, and Industrial Multi- family Construction Other Commercial Real Estate Consumer Covered Loans Reserve for Unfunded Commitments Total Allowance for Credit Losses Quarter ended June 30, 2016 Beginning balance $ 37,736 $ 14,412 $ 2,540 $ 2,433 $ 6,567 $ 11,894 $ 1,568 $ 1,225 $ 78,375 Charge-offs (2,026 ) (1,641 ) (84 ) (8 ) (879 ) (1,493 ) (2 ) ā (6,133 ) Recoveries 576 8 1 20 69 329 ā ā 1,003 Net charge-offs (1,450 ) (1,633 ) (83 ) 12 (810 ) (1,164 ) (2 ) ā (5,130 ) Provision for loan losses and other 3,798 206 469 (206 ) 1,717 2,273 (172 ) 175 8,260 Ending balance $ 40,084 $ 12,985 $ 2,926 $ 2,239 $ 7,474 $ 13,003 $ 1,394 $ 1,400 $ 81,505 Quarter ended June 30, 2015 Beginning balance $ 32,096 $ 10,831 $ 2,355 $ 2,076 $ 6,298 $ 11,655 $ 5,679 $ 1,816 $ 72,806 Charge-offs (4,127 ) (1,894 ) (469 ) (15 ) (527 ) (751 ) (323 ) ā (8,106 ) Recoveries 854 32 3 203 1,130 319 38 ā 2,579 Net charge-offs (3,273 ) (1,862 ) (466 ) 188 603 (432 ) (285 ) ā (5,527 ) Provision for loan losses and other 4,906 2,376 562 (374 ) (534 ) (403 ) (533 ) ā 6,000 Ending balance $ 33,729 $ 11,345 $ 2,451 $ 1,890 $ 6,367 $ 10,820 $ 4,861 $ 1,816 $ 73,279 Six months ended June 30, 2016 Beginning balance $ 37,074 $ 13,116 $ 2,462 $ 1,440 $ 6,088 $ 11,812 $ 1,638 $ 1,225 $ 74,855 Charge-offs (3,924 ) (2,165 ) (288 ) (134 ) (2,324 ) (2,485 ) (2 ) ā (11,322 ) Recoveries 1,078 111 26 35 220 649 ā ā 2,119 Net charge-offs (2,846 ) (2,054 ) (262 ) (99 ) (2,104 ) (1,836 ) (2 ) ā (9,203 ) Provision for loan losses and other 5,856 1,923 726 898 3,490 3,027 (242 ) 175 15,853 Ending balance $ 40,084 $ 12,985 $ 2,926 $ 2,239 $ 7,474 $ 13,003 $ 1,394 $ 1,400 $ 81,505 Six months ended June 30, 2015 Beginning balance $ 29,458 $ 10,992 $ 2,249 $ 2,297 $ 8,327 $ 12,145 $ 7,226 $ 1,816 $ 74,510 Charge-offs (11,576 ) (2,050 ) (497 ) (15 ) (1,844 ) (1,551 ) (626 ) ā (18,159 ) Recoveries 1,646 354 7 220 1,396 640 113 ā 4,376 Net charge-offs (9,930 ) (1,696 ) (490 ) 205 (448 ) (911 ) (513 ) ā (13,783 ) Provision for loan losses and other 14,201 2,049 692 (612 ) (1,512 ) (414 ) (1,852 ) ā 12,552 Ending balance $ 33,729 $ 11,345 $ 2,451 $ 1,890 $ 6,367 $ 10,820 $ 4,861 $ 1,816 $ 73,279 |
Schedule of Loans and The Related Allowance For Credit Losses | The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of June 30, 2016 and December 31, 2015 . Loans and Related Allowance for Credit Losses by Portfolio Segment (Dollar amounts in thousands) Loans Allowance for Credit Losses Individually Evaluated for Impairment Collectively Evaluated for Impairment PCI Total Individually Evaluated for Impairment Collectively Evaluated for Impairment PCI Total As of June 30, 2016 Commercial, industrial, and agricultural $ 3,755 $ 3,087,338 $ 10,507 $ 3,101,600 $ 198 $ 39,220 $ 666 $ 40,084 Commercial real estate: Office, retail, and industrial 15,742 1,500,762 13,171 1,529,675 2,086 9,517 1,382 12,985 Multi-family 399 574,031 12,674 587,104 ā 2,724 202 2,926 Construction 34 366,057 4,925 371,016 ā 2,088 151 2,239 Other commercial real estate 3,309 980,256 17,090 1,000,655 8 6,357 1,109 7,474 Total commercial real estate 19,484 3,421,106 47,860 3,488,450 2,094 20,686 2,844 25,624 Total corporate loans 23,239 6,508,444 58,367 6,590,050 2,292 59,906 3,510 65,708 Consumer ā 1,351,270 11,037 1,362,307 ā 12,476 527 13,003 Covered loans ā 18,026 9,154 27,180 ā 228 1,166 1,394 Reserve for unfunded commitments ā ā ā ā ā 1,400 ā 1,400 Total loans $ 23,239 $ 7,877,740 $ 78,558 $ 7,979,537 $ 2,292 $ 74,010 $ 5,203 $ 81,505 As of December 31, 2015 Commercial, industrial, and agricultural $ 2,871 $ 2,902,361 $ 6,934 $ 2,912,166 $ 883 $ 35,378 $ 813 $ 37,074 Commercial real estate: Office, retail, and industrial 6,162 1,376,789 12,503 1,395,454 715 10,833 1,568 13,116 Multi-family 800 526,037 1,487 528,324 ā 2,367 95 2,462 Construction 178 212,671 4,033 216,882 ā 1,160 280 1,440 Other commercial real estate 3,665 913,161 14,364 931,190 ā 5,367 721 6,088 Total commercial real estate 10,805 3,028,658 32,387 3,071,850 715 19,727 2,664 23,106 Total corporate loans 13,676 5,931,019 39,321 5,984,016 1,598 55,105 3,477 60,180 Consumer ā 1,135,959 10,965 1,146,924 ā 11,425 387 11,812 Covered loans ā 20,856 9,919 30,775 ā 248 1,390 1,638 Reserve for unfunded commitments ā ā ā ā ā 1,225 ā 1,225 Total loans $ 13,676 $ 7,087,834 $ 60,205 $ 7,161,715 $ 1,598 $ 68,003 $ 5,254 $ 74,855 |
Impaired Financing Receivables | The following table presents loans individually evaluated for impairment by class of loan as of June 30, 2016 and December 31, 2015 . PCI loans are excluded from this disclosure. Impaired Loans Individually Evaluated by Class (Dollar amounts in thousands) As of June 30, 2016 As of December 31, 2015 Recorded Investment In Recorded Investment In Loans with No Specific Reserve Loans with a Specific Reserve Unpaid Principal Balance Specific Reserve Loans with No Specific Reserve Loans with a Specific Reserve Unpaid Principal Balance Specific Reserve Commercial and industrial $ 1,909 $ 1,846 $ 5,873 $ 198 $ 1,673 $ 1,198 $ 4,592 $ 883 Agricultural ā ā ā ā ā ā ā ā Commercial real estate: Office, retail, and industrial 8,900 6,842 21,121 2,086 4,654 1,508 12,083 715 Multi-family 399 ā 399 ā 800 ā 941 ā Construction 34 ā 34 ā 178 ā 299 ā Other commercial real estate 3,039 270 4,740 8 3,665 ā 4,403 ā Total commercial real estate 12,372 7,112 26,294 2,094 9,297 1,508 17,726 715 Total impaired loans individually evaluated for impairment $ 14,281 $ 8,958 $ 32,167 $ 2,292 $ 10,970 $ 2,706 $ 22,318 $ 1,598 |
Impaired Financing Receivables Continued | The following table presents the average recorded investment and interest income recognized on impaired loans by class for the quarters and six months ended June 30, 2016 and 2015 . PCI loans are excluded from this disclosure. Average Recorded Investment and Interest Income Recognized on Impaired Loans by Class (Dollar amounts in thousands) Quarters Ended June 30, 2016 2015 Average Interest Income Recognized (1) Average Interest Income Recognized (1) Commercial and industrial $ 3,236 $ 12 $ 9,277 $ 6 Agricultural ā ā ā ā Commercial real estate: Office, retail, and industrial 12,713 29 11,188 4 Multi-family 401 ā 866 1 Construction 34 ā 5,395 ā Other commercial real estate 3,641 53 2,822 8 Total commercial real estate 16,788 82 20,271 13 Total impaired loans $ 20,024 $ 94 $ 29,548 $ 19 Six Months Ended June 30, 2016 2015 Average Interest (1) Average Interest (1) Commercial and industrial $ 3,114 $ 50 $ 12,783 $ 76 Agricultural ā ā ā ā Commercial real estate: Office, retail, and industrial 10,529 77 11,570 33 Multi-family 534 1 890 1 Construction 82 ā 5,820 ā Other commercial real estate 3,649 72 2,970 19 Total commercial real estate 14,794 150 21,250 53 Total impaired loans $ 17,908 $ 200 $ 34,033 $ 129 (1) Recorded using the cash basis of accounting. |
Financing Receivable Credit Quality Indicators | The following tables present credit quality indicators by class for corporate and consumer loans, excluding covered loans, as of June 30, 2016 and December 31, 2015 . Corporate Credit Quality Indicators by Class, Excluding Covered Loans (Dollar amounts in thousands) Pass Special Mention (1) (4) Substandard (2) (4) Non-accrual (3) Total As of June 30, 2016 Commercial and industrial $ 2,511,957 $ 130,476 $ 51,006 $ 6,303 $ 2,699,742 Agricultural 366,283 17,130 17,970 475 401,858 Commercial real estate: Office, retail, and industrial 1,441,594 38,902 32,364 16,815 1,529,675 Multi-family 577,991 4,821 3,971 321 587,104 Construction 357,969 4,250 8,437 360 371,016 Other commercial real estate 966,607 12,123 17,128 4,797 1,000,655 Total commercial real estate 3,344,161 60,096 61,900 22,293 3,488,450 Total corporate loans $ 6,222,401 $ 207,702 $ 130,876 $ 29,071 $ 6,590,050 As of December 31, 2015 Commercial and industrial $ 2,379,992 $ 86,263 $ 52,884 $ 5,587 $ 2,524,726 Agricultural 381,523 ā 5,562 355 387,440 Commercial real estate: Office, retail, and industrial 1,320,164 32,627 35,788 6,875 1,395,454 Multi-family 517,412 6,146 3,970 796 528,324 Construction 201,496 4,678 9,803 905 216,882 Other commercial real estate 898,746 13,179 13,654 5,611 931,190 Total commercial real estate 2,937,818 56,630 63,215 14,187 3,071,850 Total corporate loans $ 5,699,333 $ 142,893 $ 121,661 $ 20,129 $ 5,984,016 (1) Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future. (2) Loans categorized as substandard exhibit well-defined weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time. (3) Loans categorized as non-accrual exhibit well-defined weaknesses that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected. (4) Total special mention and substandard loans includes accruing TDR s of $847,000 as of June 30, 2016 and $862,000 as of December 31, 2015 . |
Financing Receivable Credit Quality Indicators Continued | Consumer Credit Quality Indicators by Class, Excluding Covered Loans (Dollar amounts in thousands) Performing Non-accrual Total As of June 30, 2016 Home equity $ 718,354 $ 4,527 $ 722,881 1-4 family mortgages 412,320 3,261 415,581 Installment 223,845 ā 223,845 Total consumer loans $ 1,354,519 $ 7,788 $ 1,362,307 As of December 31, 2015 Home equity $ 648,158 $ 5,310 $ 653,468 1-4 family mortgages 352,438 3,416 355,854 Installment 137,582 20 137,602 Total consumer loans $ 1,138,178 $ 8,746 $ 1,146,924 |
Troubled Debt Restructuring by Class | The table below presents TDR s by class as of June 30, 2016 and December 31, 2015 . See Note 1, "Summary of Significant Accounting Policies," for the accounting policy for TDR s. TDR s by Class (Dollar amounts in thousands) As of June 30, 2016 As of December 31, 2015 Accruing Non-accrual (1) Total Accruing Non-accrual (1) Total Commercial and industrial $ 289 $ 286 $ 575 $ 294 $ 1,050 $ 1,344 Commercial real estate: Office, retail, and industrial 159 ā 159 164 ā 164 Multi-family 591 177 768 598 186 784 Other commercial real estate 329 ā 329 340 ā 340 Total commercial real estate 1,079 177 1,256 1,102 186 1,288 Total corporate loans 1,368 463 1,831 1,396 1,236 2,632 Home equity 286 826 1,112 494 667 1,161 1-4 family mortgages 837 401 1,238 853 421 1,274 Total consumer loans 1,123 1,227 2,350 1,347 1,088 2,435 Total loans $ 2,491 $ 1,690 $ 4,181 $ 2,743 $ 2,324 $ 5,067 (1) These TDR s are included in non-accrual loans in the preceding tables. |
Troubled Debt Restructuring Activity Rollforward | A rollforward of the carrying value of TDR s for the quarters and six months ended June 30, 2016 and 2015 is presented in the following table. TDR Rollforward (Dollar amounts in thousands) Quarters Ended Six Months Ended 2016 2015 2016 2015 Accruing Beginning balance $ 2,702 $ 3,581 $ 2,743 $ 3,704 Net payments received (28 ) (349 ) (69 ) (391 ) Net transfers to non-accrual (183 ) (165 ) (183 ) (246 ) Ending balance 2,491 3,067 2,491 3,067 Non-accrual Beginning balance 2,268 1,996 2,324 19,904 Net payments received (522 ) (55 ) (578 ) (15,454 ) Charge-offs (239 ) (36 ) (239 ) (2,626 ) Net transfers from accruing 183 165 183 246 Ending balance 1,690 2,070 1,690 2,070 Total TDRs $ 4,181 $ 5,137 $ 4,181 $ 5,137 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Borrowed Funds | The following table summarizes the Company 's borrowed funds by funding source. Summary of Borrowed Funds (Dollar amounts in thousands) As of June 30, December 31, Securities sold under agreements to repurchase $ 124,744 $ 155,196 FHLB advances 325,000 9,900 Total borrowed funds $ 449,744 $ 165,096 |
Senior and Subordinated Debt (T
Senior and Subordinated Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table presents the Company 's senior and subordinated debt by issuance. Senior and Subordinated Debt (Dollar amounts in thousands) As of Issuance Date Maturity Date Interest Rate June 30, 2016 December 31, 2015 Senior notes November 2011 November 2016 5.875% $ 114,952 $ 114,891 Subordinated notes March 2006 April 2016 5.850% ā 38,499 Junior subordinated debentures: First Midwest Capital Trust I ("FMCT") November 2003 December 2033 6.950% 37,799 37,799 Great Lakes Statutory Trust II ("GLST II") (1) December 2005 December 2035 L+1.400% (2) 4,344 4,296 Great Lakes Statutory Trust III ("GLST III") (1) June 2007 September 2037 L+1.700% (2) 5,781 5,723 Total junior subordinated debentures 47,924 47,818 Total senior and subordinated debt $ 162,876 $ 201,208 (1) The junior subordinated debentures related to GLST II and GLST III were assumed by the Company during 2014 through the acquisition of Great Lakes Financial Resources, Inc., the holding company for Great Lakes Bank. These amounts include acquisition adjustments which resulted in a discount of $1.8 million to GLST II and $2.5 million to GLST III as of June 30, 2016 and $1.9 million to GLST II and $2.5 million to GLST III as of December 31, 2015 . (2) The interest rates are a variable rate based on the three-month LIBOR plus 1.400% and 1.700% for GLST II and GLST III, respectively. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The table below displays the calculation of basic and diluted earnings per common share (" EPS "). Basic and Diluted EPS (Amounts in thousands, except per share data) Quarters Ended Six Months Ended 2016 2015 2016 2015 Net income $ 25,267 $ 22,574 $ 43,229 $ 42,456 Net income applicable to non-vested restricted shares (290 ) (249 ) (502 ) (477 ) Net income applicable to common shares $ 24,977 $ 22,325 $ 42,727 $ 41,979 Weighted-average common shares outstanding: Weighted-average common shares outstanding (basic) 80,383 77,089 79,182 77,004 Dilutive effect of common stock equivalents 13 12 12 12 Weighted-average diluted common shares outstanding 80,396 77,101 79,194 77,016 Basic EPS $ 0.31 $ 0.29 $ 0.54 $ 0.55 Diluted EPS $ 0.31 $ 0.29 $ 0.54 $ 0.55 Anti-dilutive shares not included in the computation of diluted EPS (1) 469 768 539 857 (1) This amount represents outstanding stock options for which the exercise price is greater than the average market price of the Company's common stock. |
Derivative Instruments and He31
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | Cash Flow Hedges (Dollar amounts in thousands) As of June 30, 2016 December 31, 2015 Gross notional amount outstanding $ 1,420,000 $ 1,220,000 Derivative asset fair value 20,683 4,787 Derivative liability fair value (19,647 ) (8,950 ) Weighted-average interest rate received 1.28 % 1.24 % Weighted-average interest rate paid 1.01 % 0.75 % Weighted-average maturity (in years) 3.29 3.91 Fair Value Hedges (Dollar amounts in thousands) As of June 30, 2016 December 31, 2015 Gross notional amount outstanding $ 11,016 $ 11,620 Derivative liability fair value (528 ) (643 ) Weighted-average interest rate received 2.37 % 2.25 % Weighted-average interest rate paid 6.35 % 6.36 % Weighted-average maturity (in years) 1.49 1.97 Fair value of derivative (1) $ 547 $ 665 (1) This amount represents the fair value if credit risk related contingent features were triggered. |
Schedule of Derivative Instruments | Other Derivative Instruments (Dollar amounts in thousands) As of June 30, 2016 December 31, 2015 Gross notional amount outstanding $ 1,242,040 $ 853,385 Derivative asset fair value 31,868 11,446 Derivative liability fair value (31,868 ) (11,446 ) Fair value of derivative (1) 32,426 11,939 (1) This amount represents the fair value if credit risk related contingent features were triggered. |
Offsetting Assets | The following table presents the fair value of the Company's derivatives and offsetting positions as of June 30, 2016 and December 31, 2015 . Fair Value of Offsetting Derivatives (Dollar amounts in thousands) As of June 30, 2016 As of December 31, 2015 Assets Liabilities Assets Liabilities Gross amounts recognized $ 52,551 $ 52,043 $ 16,233 $ 21,039 Less: amounts offset in the Consolidated Statements of Financial Condition ā ā ā ā Net amount presented in the Consolidated Statements of Financial Condition (1) 52,551 52,043 16,233 21,039 Gross amounts not offset in the Consolidated Statements of Financial Condition: Offsetting derivative positions (20,830 ) (20,830 ) (4,791 ) (4,791 ) Cash collateral pledged ā (31,213 ) ā (16,248 ) Net credit exposure $ 31,721 $ ā $ 11,442 $ ā (1) Included in other assets or other liabilities in the Consolidated Statements of Financial Condition. |
Offsetting Liabilities | The following table presents the fair value of the Company's derivatives and offsetting positions as of June 30, 2016 and December 31, 2015 . Fair Value of Offsetting Derivatives (Dollar amounts in thousands) As of June 30, 2016 As of December 31, 2015 Assets Liabilities Assets Liabilities Gross amounts recognized $ 52,551 $ 52,043 $ 16,233 $ 21,039 Less: amounts offset in the Consolidated Statements of Financial Condition ā ā ā ā Net amount presented in the Consolidated Statements of Financial Condition (1) 52,551 52,043 16,233 21,039 Gross amounts not offset in the Consolidated Statements of Financial Condition: Offsetting derivative positions (20,830 ) (20,830 ) (4,791 ) (4,791 ) Cash collateral pledged ā (31,213 ) ā (16,248 ) Net credit exposure $ 31,721 $ ā $ 11,442 $ ā (1) Included in other assets or other liabilities in the Consolidated Statements of Financial Condition. |
Commitments, Guarantees, and 32
Commitments, Guarantees, and Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Disclosure | Contractual or Notional Amounts of Financial Instruments (Dollar amounts in thousands) As of June 30, December 31, Commitments to extend credit: Commercial, industrial, and agricultural $ 1,393,434 $ 1,303,056 Commercial real estate 361,156 366,250 Home equity 381,022 352,114 Other commitments (1) 213,437 203,121 Total commitments to extend credit $ 2,349,049 $ 2,224,541 Letters of credit $ 104,933 $ 100,610 Recourse on assets sold: Unpaid principal balance of loans sold $ 190,294 $ 196,389 Carrying value of recourse obligation (2) 179 87 (1) Other commitments includes installment and overdraft protection program commitments. (2) Included in other liabilities in the Consolidated Statements of Financial Condition. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table provides the fair value for assets and liabilities required to be measured at fair value on a recurring basis in the Consolidated Statements of Financial Condition by level in the fair value hierarchy. Recurring Fair Value Measurements (Dollar amounts in thousands) As of June 30, 2016 As of December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Trading securities: Money market funds $ 1,517 $ ā $ ā $ 2,530 $ ā $ ā Mutual funds 16,176 ā ā 14,364 ā ā Total trading securities 17,693 ā ā 16,894 ā ā Securities available-for-sale: U.S. treasury securities 38,889 ā ā 16,980 ā ā U.S. agency securities ā 199,231 ā ā 86,643 ā CMOs ā 920,735 ā ā 687,185 ā MBSs ā 286,657 ā ā 153,530 ā Municipal securities ā 294,564 ā ā 327,570 ā CDOs ā ā 30,431 ā ā 31,529 Equity securities ā 3,252 ā ā 3,199 ā Total securities available-for-sale 38,889 1,704,439 30,431 16,980 1,258,127 31,529 Mortgage servicing rights ("MSRs") (1) ā ā 4,938 ā ā 1,853 Derivative assets (1) ā 52,551 ā ā 16,233 ā Liabilities: Derivative liabilities (2) $ ā $ 52,043 $ ā $ ā $ 21,039 $ ā (1) Included in other assets in the Consolidated Statements of Financial Condition. (2) Included in other liabilities in the Consolidated Statements of Financial Condition. |
Fair Value Inputs, Assets, Quantitative Information | Significant Unobservable Inputs Used in the Valuation of CDOs As of June 30, 2016 December 31, 2015 Probability of prepayment 1.8 % - 15.1% 1.8 % - 15.1% Probability of default 18.7 % - 49.7% 19.1 % - 32.6% Loss given default 92.8 % - 98.4% 93.8 % - 97.1% Probability of deferral cure 20.6 % - 100.0% 15.2 % - 63.1% |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | A rollforward of the carrying value of CDOs for the quarters and six months ended June 30, 2016 and 2015 is presented in the following table. Carrying Value of CDOs (Dollar amounts in thousands) Quarters Ended Six Months Ended 2016 2015 2016 2015 Beginning balance $ 30,757 $ 33,928 $ 31,529 $ 33,774 Change in other comprehensive income (1) (244 ) (1,798 ) (1,030 ) (1,498 ) Paydowns (82 ) (126 ) (68 ) (272 ) Ending balance $ 30,431 $ 32,004 $ 30,431 $ 32,004 (1) Included in unrealized holding gains in the Consolidated Statements of Comprehensive Income. |
Significant Unobservable Inputs Used in the Valuation of MSRs | The following table presents the ranges of significant, unobservable inputs used by the Company to determine the fair value of MSR s as of June 30, 2016 . Significant Unobservable Inputs Used in the Valuation of MSR s As of June 30, 2016 December 31, 2015 Prepayment speed 9.1 % - 28.0% 10.1 % - 20.9% Maturity (months) 2 - 85 6 - 86 Discount rate 9.5 % - 13.0% 9.5 % - 13.0% |
Schedule of Servicing Assets at Fair Value | A rollforward of the carrying value of MSR s for the quarters and six months ended June 30, 2016 and 2015 is presented in the following table. Carrying Value of MSR s (Dollar amounts in thousands) Quarters Ended Six Months Ended 2016 2015 2016 2015 Beginning balance $ 5,022 $ 1,773 $ 1,853 $ 1,728 Additions from acquisition ā ā 3,092 ā New MSRs 162 98 347 243 (Losses) gains included in earnings (1) : Changes in valuation inputs and assumptions (132 ) 12 (172 ) (39 ) Other changes in fair value (2) (114 ) (63 ) (182 ) (112 ) Ending balance $ 4,938 $ 1,820 $ 4,938 $ 1,820 Contractual servicing fees earned (1) $ 366 $ 135 $ 549 $ 268 (1) Included in mortgage banking income in the Condensed Consolidated Statements of Income and related to assets held as of June 30, 2016 and 2015 . (2) Primarily represents changes in expected future cash flows due to payoffs and paydowns. |
Fair Value Measurements, Nonrecurring | The following table provides the fair value for each class of assets and liabilities required to be measured at fair value on a non-recurring basis in the Consolidated Statements of Financial Condition by level in the fair value hierarchy. Non-Recurring Fair Value Measurements (Dollar amounts in thousands) As of June 30, 2016 As of December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Collateral-dependent impaired loans (1) $ ā $ ā $ 11,260 $ ā $ ā $ 10,519 OREO (2) ā ā 2,160 ā ā 8,581 Loans held-for-sale (3) ā ā 18,144 ā ā 14,444 Assets held-for-sale (4) ā ā 4,851 ā ā 7,428 (1) Includes impaired loans with charge-offs and impaired loans with a specific reserve during the periods presented. (2) Includes OREO with fair value adjustments subsequent to initial transfer that occurred during the periods presented. (3) Included in other assets in the Consolidated Statements of Financial Condition. (4) Included in premises, furniture, and equipment in the Consolidated Statements of Financial Condition. |
Fair Value, by Balance Sheet Grouping | For certain financial instruments that are not required to be measured at fair value in the Consolidated Statements of Financial Condition, the Company must disclose the estimated fair values and the level within the fair value hierarchy as shown in the following table. Fair Value Measurements of Other Financial Instruments (Dollar amounts in thousands) As of June 30, 2016 December 31, 2015 Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and due from banks 1 $ 149,957 $ 149,957 $ 114,587 $ 114,587 Interest-bearing deposits in other banks 2 105,432 105,432 266,615 266,615 Securities held-to-maturity 2 20,672 18,394 23,152 20,054 FHLB and FRB stock 2 44,506 44,506 39,306 39,306 Loans 3 7,905,390 7,846,563 7,091,988 6,959,024 Investment in BOLI 3 218,133 218,133 209,601 209,601 Accrued interest receivable 3 30,167 30,167 27,847 27,847 Other interest-earning assets 3 1,307 1,307 1,982 1,982 Liabilities: Deposits 2 $ 8,971,316 $ 8,973,012 $ 8,097,738 $ 8,093,640 Borrowed funds 2 449,744 449,744 165,096 165,096 Senior and subordinated debt 1 162,876 164,753 201,208 205,726 Accrued interest payable 2 2,309 2,309 2,175 2,175 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | Jun. 28, 2016USD ($)location | Mar. 08, 2016USD ($)location | Dec. 03, 2015USD ($)location | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) |
Business Acquisition [Line Items] | |||||||
Acquisition and integration related expenses | $ 618 | $ 0 | $ 5,638 | $ 0 | |||
Standard Bancshares, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Announced number of locations to be acquired | location | 35 | ||||||
Announced assets to be acquired | $ 2,500,000 | ||||||
Announced deposits to be acquired | 2,200,000 | ||||||
Announced loans to be acquired | $ 1,800,000 | ||||||
Announced fixed exchange ratio | 0.4350 | ||||||
Announced consideration to be transferred | $ 365,000 | ||||||
NI Bancshares Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Number of retail branches acquired | location | 10 | ||||||
Minimum value of trust assets under management acquired | $ 700,000 | ||||||
Consideration transferred | 70,082 | ||||||
Goodwill | $ 20,762 | ||||||
Peoples Bancorp, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Number of retail branches acquired | location | 2 | ||||||
Consideration transferred | $ 16,828 | ||||||
Goodwill | $ 7,544 |
Acquisitions - Acquisition Acti
Acquisitions - Acquisition Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 08, 2016 | Dec. 03, 2015 |
Consideration Paid | ||
Common stock, shares issued | 3,042,494 | |
Shares issued (dollars per share) | $ 18.059 | |
Issuance costs | $ 48,000 | |
NI Bancshares Corporation | ||
Assets | ||
Cash and due from banks and interest-bearing deposits in other banks | 72,533 | |
Securities available-for-sale | 125,843 | |
Securities held-to-maturity | 1,864 | |
FHLB and FRB stock | 1,549 | |
Loans | 397,018 | |
OREO | 2,863 | |
Investment in BOLI | 8,384 | |
Goodwill | 20,762 | |
Other intangible assets | 10,925 | |
Premises, furniture, and equipment | 20,019 | |
Accrued interest receivable and other assets | 16,004 | |
Total assets | 677,764 | |
Liabilities | ||
Noninterest-bearing deposits | 130,909 | |
Interest-bearing deposits | 464,012 | |
Total deposits | 594,921 | |
Borrowed funds | 2,416 | |
Intangible liabilities | 230 | |
Accrued interest payable and other liabilities | 10,115 | |
Total liabilities | 607,682 | |
Consideration Paid | ||
Common stock (2016 - 3,042,494 shares issued at $18.059 per share), net of $48,000 in issuance costs | 54,896 | |
Cash paid | 15,186 | |
Total consideration paid | $ 70,082 | |
Peoples Bancorp, Inc. | ||
Assets | ||
Cash and due from banks and interest-bearing deposits in other banks | $ 781 | |
Securities available-for-sale | 41,492 | |
Securities held-to-maturity | 0 | |
FHLB and FRB stock | 558 | |
Loans | 53,917 | |
OREO | 515 | |
Investment in BOLI | 0 | |
Goodwill | 7,544 | |
Other intangible assets | 580 | |
Premises, furniture, and equipment | 2,215 | |
Accrued interest receivable and other assets | 2,911 | |
Total assets | 110,513 | |
Liabilities | ||
Noninterest-bearing deposits | 15,869 | |
Interest-bearing deposits | 75,944 | |
Total deposits | 91,813 | |
Borrowed funds | 1,200 | |
Intangible liabilities | 0 | |
Accrued interest payable and other liabilities | 672 | |
Total liabilities | 93,685 | |
Consideration Paid | ||
Common stock (2016 - 3,042,494 shares issued at $18.059 per share), net of $48,000 in issuance costs | 0 | |
Cash paid | 16,828 | |
Total consideration paid | $ 16,828 |
Securities (Details) - Securiti
Securities (Details) - Securities Portfolio - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Securities Available-for-Sale | ||
Amortized Cost | $ 1,763,813 | $ 1,324,146 |
Gross Unrealized Gains | 29,160 | 9,921 |
Gross Unrealized Losses | (19,214) | (27,431) |
Fair Value | 1,773,759 | 1,306,636 |
Securities Held-to-Maturity | ||
Amortized Cost | 20,672 | 23,152 |
Municipal securities, Gross Unrealized Gains | 0 | 0 |
Municipal securities, Gross Unrealized Losses | (2,278) | (3,098) |
Municipal securities, Fair Value | 18,394 | 20,054 |
Trading Securities | 17,693 | 16,894 |
U.S. treasury securities | ||
Securities Available-for-Sale | ||
Amortized Cost | 38,548 | 17,000 |
Gross Unrealized Gains | 341 | 15 |
Gross Unrealized Losses | 0 | (35) |
Fair Value | 38,889 | 16,980 |
U.S. agency securities | ||
Securities Available-for-Sale | ||
Amortized Cost | 196,735 | 86,461 |
Gross Unrealized Gains | 2,580 | 351 |
Gross Unrealized Losses | (84) | (169) |
Fair Value | 199,231 | 86,643 |
Collateralized mortgage obligations (CMOs) | ||
Securities Available-for-Sale | ||
Amortized Cost | 908,550 | 695,198 |
Gross Unrealized Gains | 13,239 | 1,072 |
Gross Unrealized Losses | (1,054) | (9,085) |
Fair Value | 920,735 | 687,185 |
Other mortgage backed securities (MBSs) | ||
Securities Available-for-Sale | ||
Amortized Cost | 281,924 | 152,481 |
Gross Unrealized Gains | 4,839 | 1,920 |
Gross Unrealized Losses | (106) | (871) |
Fair Value | 286,657 | 153,530 |
Municipal securities | ||
Securities Available-for-Sale | ||
Amortized Cost | 286,547 | 321,437 |
Gross Unrealized Gains | 8,046 | 6,443 |
Gross Unrealized Losses | (29) | (310) |
Fair Value | 294,564 | 327,570 |
Trust-preferred collateralized debt obligations (CDOs) | ||
Securities Available-for-Sale | ||
Amortized Cost | 48,219 | 48,287 |
Gross Unrealized Gains | 32 | 34 |
Gross Unrealized Losses | (17,820) | (16,792) |
Fair Value | 30,431 | 31,529 |
Equity securities | ||
Securities Available-for-Sale | ||
Amortized Cost | 3,290 | 3,282 |
Gross Unrealized Gains | 83 | 86 |
Gross Unrealized Losses | (121) | (169) |
Fair Value | $ 3,252 | $ 3,199 |
Securities (Details) - Remainin
Securities (Details) - Remaining Contractual Maturity of Securities - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
One year or less | $ 84,587 | |
After one year to five years | 430,910 | |
After five years to ten years | 6,333 | |
After ten years | 48,219 | |
Securities that do not have a single contractual maturity date | 1,193,764 | |
Amortized Cost | 1,763,813 | $ 1,324,146 |
Available-for-sale Securities, Fair Value [Abstract] | ||
One year or less | 83,558 | |
After one year to five years | 425,669 | |
After five years to ten years | 6,256 | |
After ten years | 47,632 | |
Securities that do not have a single contractual maturity date | 1,210,644 | |
Total securities available-for-sale | 1,773,759 | 1,306,636 |
Held-to-maturity Securities, Amortized Cost [Abstract] | ||
One year or less | 3,220 | |
After one year to five years | 7,840 | |
After five years to ten years | 2,111 | |
After ten years | 7,501 | |
Securities that do not have a single contractual maturity date | 0 | |
Amortized Cost | 20,672 | 23,152 |
Held-to-maturity Securities, Fair Value [Abstract] | ||
One year or less | 2,865 | |
After one year to five years | 6,976 | |
After five years to ten years | 1,878 | |
After ten years | 6,675 | |
Securities that do not have a single contractual maturity date | 0 | |
Total | $ 18,394 | $ 20,054 |
Securities (Details) - Narrativ
Securities (Details) - Narrative - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities pledged as collateral | $ 1,100,000,000 | $ 856,900,000 |
Held-to-maturity securities pledged as collateral | $ 0 | $ 0 |
Securities (Details) - Securi39
Securities (Details) - Securities Gains (Losses) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Gains on sales of securities: | ||||
Gross realized gains | $ 149 | $ 515 | $ 1,079 | $ 1,165 |
Gross realized losses | (126) | 0 | (169) | (138) |
Net realized gains on sales of securities | 23 | 515 | 910 | 1,027 |
Non-cash impairment charges: | ||||
Other-than-temporary securities impairment (OTTI) | 0 | 0 | 0 | 0 |
Net realized gains | $ 23 | $ 515 | $ 910 | $ 1,027 |
Securities (Details) - Changes
Securities (Details) - Changes In Credit Losses Recognized In Earnings $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($)security | ||
Changes in Credit Losses Recognized in Earnings [Roll Forward] | |||||
Beginning balance | $ 23,709 | $ 23,709 | $ 23,709 | $ 23,880 | |
OTTI included in earnings: | |||||
Reduction for sales of securities | [1],[2] | 0 | 0 | 0 | (171) |
Ending balance | $ 23,709 | $ 23,709 | $ 23,709 | $ 23,709 | |
Collateralized mortgage obligations (CMOs) | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Number of CMOs sold | security | 1 | ||||
Carrying value of CMOs sold | $ 1,300 | ||||
[1] | Included in net securities gains in the Condensed Consolidated Statements of Income. | ||||
[2] | This reduction was driven by the sale of one CMO with a carrying value of $1.3 million during the six months ended June 30, 201 |
Securities (Details) - Securi41
Securities (Details) - Securities In An Unrealized Loss Position $ in Thousands | Jun. 30, 2016USD ($)security | Dec. 31, 2015USD ($)security |
Securities Available-for-Sale | ||
Number of Securities | security | 71 | 252 |
Fair Value - Less Than 12 Months | $ 66,148 | $ 428,035 |
Unrealized Losses - Less Than 12 Months | 510 | 4,897 |
Fair Value - 12 Months or Longer | 127,919 | 337,516 |
Unrealized Losses - 12 Months or Longer | 18,704 | 22,534 |
Fair Value - Total | 194,067 | 765,551 |
Unrealized Losses - Total | $ 19,214 | $ 27,431 |
Securities Held-To-Maturity | ||
Number of Securities | security | 16 | 19 |
Fair Value - Less Than 12 Months | $ 18,394 | $ 20,054 |
Unrealized Loss - Less Than 12 Months | 2,278 | 3,098 |
Fair Value - 12 Months or Longer | 0 | 0 |
Unrealized Losses - 12 Months or Longer | 0 | 0 |
Fair Value - Total | 18,394 | 20,054 |
Unrealized Losses - Total | $ 2,278 | $ 3,098 |
U.S. treasury securities | ||
Securities Available-for-Sale | ||
Number of Securities | security | 4 | |
Fair Value - Less Than 12 Months | $ 7,946 | |
Unrealized Losses - Less Than 12 Months | 35 | |
Fair Value - 12 Months or Longer | 0 | |
Unrealized Losses - 12 Months or Longer | 0 | |
Fair Value - Total | 7,946 | |
Unrealized Losses - Total | $ 35 | |
U.S. agency securities | ||
Securities Available-for-Sale | ||
Number of Securities | security | 8 | 10 |
Fair Value - Less Than 12 Months | $ 17,500 | $ 30,620 |
Unrealized Losses - Less Than 12 Months | 84 | 169 |
Fair Value - 12 Months or Longer | 0 | 0 |
Unrealized Losses - 12 Months or Longer | 0 | 0 |
Fair Value - Total | 17,500 | 30,620 |
Unrealized Losses - Total | $ 84 | $ 169 |
Collateralized mortgage obligations (CMOs) | ||
Securities Available-for-Sale | ||
Number of Securities | security | 31 | 133 |
Fair Value - Less Than 12 Months | $ 24,763 | $ 309,787 |
Unrealized Losses - Less Than 12 Months | 113 | 3,110 |
Fair Value - 12 Months or Longer | 89,507 | 257,362 |
Unrealized Losses - 12 Months or Longer | 941 | 5,975 |
Fair Value - Total | 114,270 | 567,149 |
Unrealized Losses - Total | $ 1,054 | $ 9,085 |
Other mortgage backed securities (MBSs) | ||
Securities Available-for-Sale | ||
Number of Securities | security | 10 | 27 |
Fair Value - Less Than 12 Months | $ 18,479 | $ 63,028 |
Unrealized Losses - Less Than 12 Months | 79 | 427 |
Fair Value - 12 Months or Longer | 6,965 | 31,980 |
Unrealized Losses - 12 Months or Longer | 27 | 444 |
Fair Value - Total | 25,444 | 95,008 |
Unrealized Losses - Total | $ 106 | $ 871 |
Municipal securities | ||
Securities Available-for-Sale | ||
Number of Securities | security | 10 | 68 |
Fair Value - Less Than 12 Months | $ 3,171 | $ 8,135 |
Unrealized Losses - Less Than 12 Months | 18 | 65 |
Fair Value - 12 Months or Longer | 1,012 | 24,227 |
Unrealized Losses - 12 Months or Longer | 11 | 245 |
Fair Value - Total | 4,183 | 32,362 |
Unrealized Losses - Total | $ 29 | $ 310 |
Trust-preferred collateralized debt obligations (CDOs) | ||
Securities Available-for-Sale | ||
Number of Securities | security | 10 | 8 |
Fair Value - Less Than 12 Months | $ 1,750 | $ 8,034 |
Unrealized Losses - Less Than 12 Months | 96 | 971 |
Fair Value - 12 Months or Longer | 28,058 | 21,642 |
Unrealized Losses - 12 Months or Longer | 17,724 | 15,821 |
Fair Value - Total | 29,808 | 29,676 |
Unrealized Losses - Total | $ 17,820 | $ 16,792 |
Equity securities | ||
Securities Available-for-Sale | ||
Number of Securities | security | 2 | 2 |
Fair Value - Less Than 12 Months | $ 485 | $ 485 |
Unrealized Losses - Less Than 12 Months | 120 | 120 |
Fair Value - 12 Months or Longer | 2,377 | 2,305 |
Unrealized Losses - 12 Months or Longer | 1 | 49 |
Fair Value - Total | 2,862 | 2,790 |
Unrealized Losses - Total | $ 121 | $ 169 |
Loans (Details) - Loan Portfoli
Loans (Details) - Loan Portfolio - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Abstract] | ||
Commercial and industrial | $ 2,699,742 | $ 2,524,726 |
Agricultural | 401,858 | 387,440 |
Commercial real estate: | ||
Office, retail, and industrial | 1,529,675 | 1,395,454 |
Multi-family | 587,104 | 528,324 |
Construction | 371,016 | 216,882 |
Other commercial real estate | 1,000,655 | 931,190 |
Total commercial real estate | 3,488,450 | 3,071,850 |
Total corporate loans | 6,590,050 | 5,984,016 |
Home equity | 722,881 | 653,468 |
1-4 family mortgages | 415,581 | 355,854 |
Installment | 223,845 | 137,602 |
Total consumer loans | 1,362,307 | 1,146,924 |
Covered loans | 27,180 | 30,775 |
Total Loans | 7,979,537 | 7,161,715 |
Deferred loan fees included in total loans | 4,359 | 5,191 |
Overdrawn demand deposits included in total loans | $ 4,480 | $ 2,810 |
Loans (Details) - Loans Sales
Loans (Details) - Loans Sales - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total net gains on loan sales | $ 1,680 | $ 1,770 | $ 2,965 | $ 2,996 | |
Corporate loan sales | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from sales | 14,271 | 4,138 | 23,859 | 9,423 | |
Less book value of loans sold | 13,760 | 3,864 | 22,890 | 9,009 | |
Total net gains on loan sales | [1] | 511 | 274 | 969 | 414 |
1-4 family mortgage loan sales | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from sales | 53,258 | 53,445 | 92,765 | 89,027 | |
Less book value of loans sold | 52,089 | 51,949 | 90,769 | 86,445 | |
Total net gains on loan sales | [2] | $ 1,169 | $ 1,496 | $ 1,996 | $ 2,582 |
[1] | Net gains on corporate loan sales are included in other service charges, commissions, and fees in the Condensed Consolidated Statements of Income. | ||||
[2] | Net gains on 1-4 family mortgage loan sales are included in mortgage banking income in the Condensed Consolidated Statements of Income. |
Acquired and Covered Loans (Det
Acquired and Covered Loans (Details) - Acquired Loans - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Acquired Loans (Details) - Acquired Loans [Line Items] | ||
Non-PCI | $ 800,207 | $ 555,362 |
Total | 878,765 | 615,567 |
Renewed non-purchased credit impaired loans | 98,300 | 61,600 |
Acquired loans | ||
Acquired Loans (Details) - Acquired Loans [Line Items] | ||
Non-PCI | 782,181 | 534,506 |
Total | 851,585 | 584,792 |
Covered loans | ||
Acquired Loans (Details) - Acquired Loans [Line Items] | ||
Non-PCI | 18,026 | 20,856 |
Total | 27,180 | 30,775 |
Receivables acquired with deteriorated credit quality | ||
Acquired Loans (Details) - Acquired Loans [Line Items] | ||
PCI | 78,558 | 60,205 |
Receivables acquired with deteriorated credit quality | Acquired loans | ||
Acquired Loans (Details) - Acquired Loans [Line Items] | ||
PCI | 69,404 | 50,286 |
Receivables acquired with deteriorated credit quality | Covered loans | ||
Acquired Loans (Details) - Acquired Loans [Line Items] | ||
PCI | $ 9,154 | $ 9,919 |
Acquired and Covered Loans (D45
Acquired and Covered Loans (Details) - Changes in FDIC Indemnification Asset - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
FDIC Indemnification Asset [Roll Forward] | ||||
Beginning balance | $ 5,680 | $ 8,540 | $ 3,903 | $ 8,452 |
Amortization | (302) | (395) | (582) | (853) |
Change in expected reimbursements from the FDIC for changes in expected credit losses | (475) | 786 | (259) | 1,720 |
Net payments to (from) the FDIC | 268 | (1,596) | 2,109 | (1,984) |
Ending balance | $ 5,171 | $ 7,335 | $ 5,171 | $ 7,335 |
Acquired and Covered Loans (D46
Acquired and Covered Loans (Details) - Changes in Accretable Yield - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Changes in Accretable Yield [Roll Forward] | |||||
Beginning balances | $ 27,258 | $ 26,420 | $ 24,912 | $ 28,244 | |
Additions | 0 | 0 | 3,981 | 0 | |
Accretion | (2,303) | (4,335) | (3,849) | (6,998) | |
Other | [1] | 127 | (1,427) | 38 | (588) |
Ending balance | $ 25,082 | $ 20,658 | $ 25,082 | $ 20,658 | |
[1] | Increases represent a rise in the expected future cash flows to be collected over the remaining estimated life of the underlying portfolio while decreases result from the resolution of certain loans occurring earlier than anticipated. |
Past Due Loans, Allowance For47
Past Due Loans, Allowance For Credit Losses, Impaired Loans and TDRS (Details) - Aging Analysis of Past Due Loans and Non-Performing Loans by Class - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 7,926,386 | $ 7,119,965 |
Total Past Due | 53,151 | 41,750 |
Total Loans | 7,979,537 | 7,161,715 |
Non- accrual | 37,312 | 29,430 |
90 Days or More Past Due, Still Accruing Interest | 5,406 | 3,057 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 2,684,411 | 2,516,197 |
Total Past Due | 15,331 | 8,529 |
Total Loans | 2,699,742 | 2,524,726 |
Non- accrual | 6,303 | 5,587 |
90 Days or More Past Due, Still Accruing Interest | 1,050 | 857 |
Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 401,242 | 387,109 |
Total Past Due | 616 | 331 |
Total Loans | 401,858 | 387,440 |
Non- accrual | 475 | 355 |
90 Days or More Past Due, Still Accruing Interest | 0 | 0 |
Office, retail, and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,516,265 | 1,386,383 |
Total Past Due | 13,410 | 9,071 |
Total Loans | 1,529,675 | 1,395,454 |
Non- accrual | 16,815 | 6,875 |
90 Days or More Past Due, Still Accruing Interest | 34 | 4 |
Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 584,040 | 526,625 |
Total Past Due | 3,064 | 1,699 |
Total Loans | 587,104 | 528,324 |
Non- accrual | 321 | 796 |
90 Days or More Past Due, Still Accruing Interest | 354 | 548 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 370,596 | 216,377 |
Total Past Due | 420 | 505 |
Total Loans | 371,016 | 216,882 |
Non- accrual | 360 | 905 |
90 Days or More Past Due, Still Accruing Interest | 20 | 0 |
Other commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 992,309 | 922,531 |
Total Past Due | 8,346 | 8,659 |
Total Loans | 1,000,655 | 931,190 |
Non- accrual | 4,797 | 5,611 |
90 Days or More Past Due, Still Accruing Interest | 2,925 | 661 |
Total commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 3,463,210 | 3,051,916 |
Total Past Due | 25,240 | 19,934 |
Total Loans | 3,488,450 | 3,071,850 |
Non- accrual | 22,293 | 14,187 |
90 Days or More Past Due, Still Accruing Interest | 3,333 | 1,213 |
Total corporate loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 6,548,863 | 5,955,222 |
Total Past Due | 41,187 | 28,794 |
Total Loans | 6,590,050 | 5,984,016 |
Non- accrual | 29,071 | 20,129 |
90 Days or More Past Due, Still Accruing Interest | 4,383 | 2,070 |
Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 717,461 | 647,175 |
Total Past Due | 5,420 | 6,293 |
Total Loans | 722,881 | 653,468 |
Non- accrual | 4,527 | 5,310 |
90 Days or More Past Due, Still Accruing Interest | 153 | 216 |
1-4 family mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 411,585 | 350,980 |
Total Past Due | 3,996 | 4,874 |
Total Loans | 415,581 | 355,854 |
Non- accrual | 3,261 | 3,416 |
90 Days or More Past Due, Still Accruing Interest | 604 | 528 |
Installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 222,273 | 136,780 |
Total Past Due | 1,572 | 822 |
Total Loans | 223,845 | 137,602 |
Non- accrual | 0 | 20 |
90 Days or More Past Due, Still Accruing Interest | 266 | 69 |
Total consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,351,319 | 1,134,935 |
Total Past Due | 10,988 | 11,989 |
Total Loans | 1,362,307 | 1,146,924 |
Non- accrual | 7,788 | 8,746 |
90 Days or More Past Due, Still Accruing Interest | 1,023 | 813 |
Covered loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 26,204 | 29,808 |
Total Past Due | 976 | 967 |
Total Loans | 27,180 | 30,775 |
Non- accrual | 453 | 555 |
90 Days or More Past Due, Still Accruing Interest | 0 | 174 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 27,927 | 19,049 |
30-89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 10,162 | 4,956 |
30-89 Days Past Due | Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 383 | 245 |
30-89 Days Past Due | Office, retail, and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,677 | 2,647 |
30-89 Days Past Due | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,566 | 541 |
30-89 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 47 | 0 |
30-89 Days Past Due | Other commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,926 | 3,575 |
30-89 Days Past Due | Total commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 10,216 | 6,763 |
30-89 Days Past Due | Total corporate loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 20,761 | 11,964 |
30-89 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,278 | 3,247 |
30-89 Days Past Due | 1-4 family mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,901 | 2,680 |
30-89 Days Past Due | Installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,306 | 753 |
30-89 Days Past Due | Total consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,485 | 6,680 |
30-89 Days Past Due | Covered loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 681 | 405 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 25,224 | 22,701 |
90 Days or More Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,169 | 3,573 |
90 Days or More Past Due | Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 233 | 86 |
90 Days or More Past Due | Office, retail, and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 8,733 | 6,424 |
90 Days or More Past Due | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 498 | 1,158 |
90 Days or More Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 373 | 505 |
90 Days or More Past Due | Other commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,420 | 5,084 |
90 Days or More Past Due | Total commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 15,024 | 13,171 |
90 Days or More Past Due | Total corporate loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 20,426 | 16,830 |
90 Days or More Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,142 | 3,046 |
90 Days or More Past Due | 1-4 family mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,095 | 2,194 |
90 Days or More Past Due | Installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 266 | 69 |
90 Days or More Past Due | Total consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,503 | 5,309 |
90 Days or More Past Due | Covered loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 295 | $ 562 |
Past Due Loans, Allowance For48
Past Due Loans, Allowance For Credit Losses, Impaired Loans and TDRS (Details) - Allowance for Credit Losses - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | $ 78,375 | $ 72,806 | $ 74,855 | $ 74,510 |
Charge-offs | (6,133) | (8,106) | (11,322) | (18,159) |
Recoveries | 1,003 | 2,579 | 2,119 | 4,376 |
Net charge-offs | (5,130) | (5,527) | (9,203) | (13,783) |
Provision for loan losses and other | 8,260 | 6,000 | 15,853 | 12,552 |
Ending balance | 81,505 | 73,279 | 81,505 | 73,279 |
Commercial, Industrial, and Agricultural | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 37,736 | 32,096 | 37,074 | 29,458 |
Charge-offs | (2,026) | (4,127) | (3,924) | (11,576) |
Recoveries | 576 | 854 | 1,078 | 1,646 |
Net charge-offs | (1,450) | (3,273) | (2,846) | (9,930) |
Provision for loan losses and other | 3,798 | 4,906 | 5,856 | 14,201 |
Ending balance | 40,084 | 33,729 | 40,084 | 33,729 |
Office, Retail, and Industrial | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 14,412 | 10,831 | 13,116 | 10,992 |
Charge-offs | (1,641) | (1,894) | (2,165) | (2,050) |
Recoveries | 8 | 32 | 111 | 354 |
Net charge-offs | (1,633) | (1,862) | (2,054) | (1,696) |
Provision for loan losses and other | 206 | 2,376 | 1,923 | 2,049 |
Ending balance | 12,985 | 11,345 | 12,985 | 11,345 |
Multi-family | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 2,540 | 2,355 | 2,462 | 2,249 |
Charge-offs | (84) | (469) | (288) | (497) |
Recoveries | 1 | 3 | 26 | 7 |
Net charge-offs | (83) | (466) | (262) | (490) |
Provision for loan losses and other | 469 | 562 | 726 | 692 |
Ending balance | 2,926 | 2,451 | 2,926 | 2,451 |
Construction | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 2,433 | 2,076 | 1,440 | 2,297 |
Charge-offs | (8) | (15) | (134) | (15) |
Recoveries | 20 | 203 | 35 | 220 |
Net charge-offs | 12 | 188 | (99) | 205 |
Provision for loan losses and other | (206) | (374) | 898 | (612) |
Ending balance | 2,239 | 1,890 | 2,239 | 1,890 |
Other Commercial Real Estate | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 6,567 | 6,298 | 6,088 | 8,327 |
Charge-offs | (879) | (527) | (2,324) | (1,844) |
Recoveries | 69 | 1,130 | 220 | 1,396 |
Net charge-offs | (810) | 603 | (2,104) | (448) |
Provision for loan losses and other | 1,717 | (534) | 3,490 | (1,512) |
Ending balance | 7,474 | 6,367 | 7,474 | 6,367 |
Consumer | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 11,894 | 11,655 | 11,812 | 12,145 |
Charge-offs | (1,493) | (751) | (2,485) | (1,551) |
Recoveries | 329 | 319 | 649 | 640 |
Net charge-offs | (1,164) | (432) | (1,836) | (911) |
Provision for loan losses and other | 2,273 | (403) | 3,027 | (414) |
Ending balance | 13,003 | 10,820 | 13,003 | 10,820 |
Covered Loans | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 1,568 | 5,679 | 1,638 | 7,226 |
Charge-offs | (2) | (323) | (2) | (626) |
Recoveries | 0 | 38 | 0 | 113 |
Net charge-offs | (2) | (285) | (2) | (513) |
Provision for loan losses and other | (172) | (533) | (242) | (1,852) |
Ending balance | 1,394 | 4,861 | 1,394 | 4,861 |
Reserve for Unfunded Commitments | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 1,225 | 1,816 | 1,225 | 1,816 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | 0 | 0 |
Provision for loan losses and other | 175 | 0 | 175 | 0 |
Ending balance | $ 1,400 | $ 1,816 | $ 1,400 | $ 1,816 |
Past Due Loans, Allowance For49
Past Due Loans, Allowance For Credit Losses, Impaired Loans and TDRS (Details) - Loans and Related Allowance for Credit Losses by Portfolio Segment - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans Individually Evaluated for Impairment | $ 23,239 | $ 13,676 | ||||
Loans Collectively Evaluated for Impairment | 7,877,740 | 7,087,834 | ||||
Loans | 7,979,537 | 7,161,715 | ||||
Allowance for Credit Losses Individually Evaluated for Impairment | 2,292 | 1,598 | ||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 74,010 | 68,003 | ||||
Total Allowance for Credit Losses | 81,505 | $ 78,375 | 74,855 | $ 73,279 | $ 72,806 | $ 74,510 |
Receivables acquired with deteriorated credit quality | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
PCI | 78,558 | 60,205 | ||||
Total Allowance for Credit Losses | 5,203 | 5,254 | ||||
Commercial, industrial, and agricultural | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans Individually Evaluated for Impairment | 3,755 | 2,871 | ||||
Loans Collectively Evaluated for Impairment | 3,087,338 | 2,902,361 | ||||
Loans | 3,101,600 | 2,912,166 | ||||
Allowance for Credit Losses Individually Evaluated for Impairment | 198 | 883 | ||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 39,220 | 35,378 | ||||
Total Allowance for Credit Losses | 40,084 | 37,074 | ||||
Commercial, industrial, and agricultural | Receivables acquired with deteriorated credit quality | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
PCI | 10,507 | 6,934 | ||||
Total Allowance for Credit Losses | 666 | 813 | ||||
Office, retail, and industrial | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans Individually Evaluated for Impairment | 15,742 | 6,162 | ||||
Loans Collectively Evaluated for Impairment | 1,500,762 | 1,376,789 | ||||
Loans | 1,529,675 | 1,395,454 | ||||
Allowance for Credit Losses Individually Evaluated for Impairment | 2,086 | 715 | ||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 9,517 | 10,833 | ||||
Total Allowance for Credit Losses | 12,985 | 13,116 | ||||
Office, retail, and industrial | Receivables acquired with deteriorated credit quality | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
PCI | 13,171 | 12,503 | ||||
Total Allowance for Credit Losses | 1,382 | 1,568 | ||||
Multi-family | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans Individually Evaluated for Impairment | 399 | 800 | ||||
Loans Collectively Evaluated for Impairment | 574,031 | 526,037 | ||||
Loans | 587,104 | 528,324 | ||||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | ||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 2,724 | 2,367 | ||||
Total Allowance for Credit Losses | 2,926 | 2,462 | ||||
Multi-family | Receivables acquired with deteriorated credit quality | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
PCI | 12,674 | 1,487 | ||||
Total Allowance for Credit Losses | 202 | 95 | ||||
Construction | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans Individually Evaluated for Impairment | 34 | 178 | ||||
Loans Collectively Evaluated for Impairment | 366,057 | 212,671 | ||||
Loans | 371,016 | 216,882 | ||||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | ||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 2,088 | 1,160 | ||||
Total Allowance for Credit Losses | 2,239 | 1,440 | ||||
Construction | Receivables acquired with deteriorated credit quality | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
PCI | 4,925 | 4,033 | ||||
Total Allowance for Credit Losses | 151 | 280 | ||||
Other commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans Individually Evaluated for Impairment | 3,309 | 3,665 | ||||
Loans Collectively Evaluated for Impairment | 980,256 | 913,161 | ||||
Loans | 1,000,655 | 931,190 | ||||
Allowance for Credit Losses Individually Evaluated for Impairment | 8 | 0 | ||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 6,357 | 5,367 | ||||
Total Allowance for Credit Losses | 7,474 | 6,088 | ||||
Other commercial real estate | Receivables acquired with deteriorated credit quality | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
PCI | 17,090 | 14,364 | ||||
Total Allowance for Credit Losses | 1,109 | 721 | ||||
Total commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans Individually Evaluated for Impairment | 19,484 | 10,805 | ||||
Loans Collectively Evaluated for Impairment | 3,421,106 | 3,028,658 | ||||
Loans | 3,488,450 | 3,071,850 | ||||
Allowance for Credit Losses Individually Evaluated for Impairment | 2,094 | 715 | ||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 20,686 | 19,727 | ||||
Total Allowance for Credit Losses | 25,624 | 23,106 | ||||
Total commercial real estate | Receivables acquired with deteriorated credit quality | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
PCI | 47,860 | 32,387 | ||||
Total Allowance for Credit Losses | 2,844 | 2,664 | ||||
Total corporate loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans Individually Evaluated for Impairment | 23,239 | 13,676 | ||||
Loans Collectively Evaluated for Impairment | 6,508,444 | 5,931,019 | ||||
Loans | 6,590,050 | 5,984,016 | ||||
Allowance for Credit Losses Individually Evaluated for Impairment | 2,292 | 1,598 | ||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 59,906 | 55,105 | ||||
Total Allowance for Credit Losses | 65,708 | 60,180 | ||||
Total corporate loans | Receivables acquired with deteriorated credit quality | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
PCI | 58,367 | 39,321 | ||||
Total Allowance for Credit Losses | 3,510 | 3,477 | ||||
Total consumer loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||||
Loans Collectively Evaluated for Impairment | 1,351,270 | 1,135,959 | ||||
Loans | 1,362,307 | 1,146,924 | ||||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | ||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 12,476 | 11,425 | ||||
Total Allowance for Credit Losses | 13,003 | 11,812 | ||||
Total consumer loans | Receivables acquired with deteriorated credit quality | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
PCI | 11,037 | 10,965 | ||||
Total Allowance for Credit Losses | 527 | 387 | ||||
Covered loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||||
Loans Collectively Evaluated for Impairment | 18,026 | 20,856 | ||||
Loans | 27,180 | 30,775 | ||||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | ||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 228 | 248 | ||||
Total Allowance for Credit Losses | 1,394 | 1,638 | ||||
Covered loans | Receivables acquired with deteriorated credit quality | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
PCI | 9,154 | 9,919 | ||||
Total Allowance for Credit Losses | 1,166 | 1,390 | ||||
Reserve for unfunded commitments | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||||
Loans Collectively Evaluated for Impairment | 0 | 0 | ||||
Loans | 0 | 0 | ||||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | ||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 1,400 | 1,225 | ||||
Total Allowance for Credit Losses | 1,400 | 1,225 | ||||
Reserve for unfunded commitments | Receivables acquired with deteriorated credit quality | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
PCI | 0 | 0 | ||||
Total Allowance for Credit Losses | $ 0 | $ 0 |
Past Due Loans, Allowance For50
Past Due Loans, Allowance For Credit Losses, Impaired Loans and TDRS (Details) - Impaired Loans Individually Evaluated by Class - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with no Specific Reserve | $ 14,281 | $ 10,970 |
Recorded Investment in Loans with a Specific Reserve | 8,958 | 2,706 |
Unpaid Principal Balance | 32,167 | 22,318 |
Specific Reserve | 2,292 | 1,598 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with no Specific Reserve | 1,909 | 1,673 |
Recorded Investment in Loans with a Specific Reserve | 1,846 | 1,198 |
Unpaid Principal Balance | 5,873 | 4,592 |
Specific Reserve | 198 | 883 |
Agricultural | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with no Specific Reserve | 0 | 0 |
Recorded Investment in Loans with a Specific Reserve | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Specific Reserve | 0 | 0 |
Office, retail, and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with no Specific Reserve | 8,900 | 4,654 |
Recorded Investment in Loans with a Specific Reserve | 6,842 | 1,508 |
Unpaid Principal Balance | 21,121 | 12,083 |
Specific Reserve | 2,086 | 715 |
Multi-family | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with no Specific Reserve | 399 | 800 |
Recorded Investment in Loans with a Specific Reserve | 0 | 0 |
Unpaid Principal Balance | 399 | 941 |
Specific Reserve | 0 | 0 |
Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with no Specific Reserve | 34 | 178 |
Recorded Investment in Loans with a Specific Reserve | 0 | 0 |
Unpaid Principal Balance | 34 | 299 |
Specific Reserve | 0 | 0 |
Other commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with no Specific Reserve | 3,039 | 3,665 |
Recorded Investment in Loans with a Specific Reserve | 270 | 0 |
Unpaid Principal Balance | 4,740 | 4,403 |
Specific Reserve | 8 | 0 |
Total commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with no Specific Reserve | 12,372 | 9,297 |
Recorded Investment in Loans with a Specific Reserve | 7,112 | 1,508 |
Unpaid Principal Balance | 26,294 | 17,726 |
Specific Reserve | $ 2,094 | $ 715 |
Past Due Loans, Allowance For51
Past Due Loans, Allowance For Credit Losses, Impaired Loans and TDRS (Details) - Impaired Loans Individually Evaluated by Class (Continued) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) [Line Items] | |||||
Average Recorded Investment | $ 20,024 | $ 29,548 | $ 17,908 | $ 34,033 | |
Interest Income Recognized | [1] | 94 | 19 | 200 | 129 |
Commercial and industrial | |||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) [Line Items] | |||||
Average Recorded Investment | 3,236 | 9,277 | 3,114 | 12,783 | |
Interest Income Recognized | [1] | 12 | 6 | 50 | 76 |
Agricultural | |||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) [Line Items] | |||||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | [1] | 0 | 0 | 0 | 0 |
Office, retail, and industrial | |||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) [Line Items] | |||||
Average Recorded Investment | 12,713 | 11,188 | 10,529 | 11,570 | |
Interest Income Recognized | [1] | 29 | 4 | 77 | 33 |
Multi-family | |||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) [Line Items] | |||||
Average Recorded Investment | 401 | 866 | 534 | 890 | |
Interest Income Recognized | [1] | 0 | 1 | 1 | 1 |
Construction | |||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) [Line Items] | |||||
Average Recorded Investment | 34 | 5,395 | 82 | 5,820 | |
Interest Income Recognized | [1] | 0 | 0 | 0 | 0 |
Other commercial real estate | |||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) [Line Items] | |||||
Average Recorded Investment | 3,641 | 2,822 | 3,649 | 2,970 | |
Interest Income Recognized | [1] | 53 | 8 | 72 | 19 |
Total commercial real estate | |||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Impaired Loans Individually Evaluated by Class (Continued) [Line Items] | |||||
Average Recorded Investment | 16,788 | 20,271 | 14,794 | 21,250 | |
Interest Income Recognized | [1] | $ 82 | $ 13 | $ 150 | $ 53 |
[1] | Recorded using the cash basis of accounting. |
Past Due Loans, Allowance For52
Past Due Loans, Allowance For Credit Losses, Impaired Loans and TDRS (Details) - Credit Quality Indicators by Class, Excluding Covered Loans - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Accruing | $ 2,491 | $ 2,743 | |
Special Mention and Substandard Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Accruing | 847 | 862 | |
Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 2,699,742 | 2,524,726 | |
Accruing | 289 | 294 | |
Commercial and industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 2,511,957 | 2,379,992 | |
Commercial and industrial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 130,476 | 86,263 |
Commercial and industrial | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 51,006 | 52,884 |
Commercial and industrial | Substandard Non-Accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [4] | 6,303 | 5,587 |
Agricultural | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 401,858 | 387,440 | |
Agricultural | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 366,283 | 381,523 | |
Agricultural | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 17,130 | 0 |
Agricultural | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 17,970 | 5,562 |
Agricultural | Substandard Non-Accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [4] | 475 | 355 |
Office, retail, and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 1,529,675 | 1,395,454 | |
Accruing | 159 | 164 | |
Office, retail, and industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 1,441,594 | 1,320,164 | |
Office, retail, and industrial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 38,902 | 32,627 |
Office, retail, and industrial | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 32,364 | 35,788 |
Office, retail, and industrial | Substandard Non-Accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [4] | 16,815 | 6,875 |
Multi-family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 587,104 | 528,324 | |
Accruing | 591 | 598 | |
Multi-family | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 577,991 | 517,412 | |
Multi-family | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 4,821 | 6,146 |
Multi-family | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 3,971 | 3,970 |
Multi-family | Substandard Non-Accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [4] | 321 | 796 |
Construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 371,016 | 216,882 | |
Construction | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 357,969 | 201,496 | |
Construction | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 4,250 | 4,678 |
Construction | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 8,437 | 9,803 |
Construction | Substandard Non-Accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [4] | 360 | 905 |
Other commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 1,000,655 | 931,190 | |
Accruing | 329 | 340 | |
Other commercial real estate | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 966,607 | 898,746 | |
Other commercial real estate | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 12,123 | 13,179 |
Other commercial real estate | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 17,128 | 13,654 |
Other commercial real estate | Substandard Non-Accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [4] | 4,797 | 5,611 |
Total commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 3,488,450 | 3,071,850 | |
Accruing | 1,079 | 1,102 | |
Total commercial real estate | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 3,344,161 | 2,937,818 | |
Total commercial real estate | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 60,096 | 56,630 |
Total commercial real estate | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 61,900 | 63,215 |
Total commercial real estate | Substandard Non-Accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [4] | 22,293 | 14,187 |
Total corporate loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 6,590,050 | 5,984,016 | |
Accruing | 1,368 | 1,396 | |
Total corporate loans | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | 6,222,401 | 5,699,333 | |
Total corporate loans | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 207,702 | 142,893 |
Total corporate loans | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 130,876 | 121,661 |
Total corporate loans | Substandard Non-Accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Credit Quality Indicators by Class | [4] | $ 29,071 | $ 20,129 |
[1] | Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future. | ||
[2] | Total special mention and substandard loans includes accruing TDRs of $847,000 as of JuneĀ 30, 2016 and $862,000 as of DecemberĀ 31, 2015. | ||
[3] | Loans categorized as substandard exhibit well-defined weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time. | ||
[4] | Loans categorized as non-accrual exhibit well-defined weaknesses that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected. |
Past Due Loans, Allowance For53
Past Due Loans, Allowance For Credit Losses, Impaired Loans and TDRS (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Home equity | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | $ 722,881 | $ 653,468 |
Home equity | Performing | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 718,354 | 648,158 |
Home equity | Non-accrual | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 4,527 | 5,310 |
1-4 family mortgages | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 415,581 | 355,854 |
1-4 family mortgages | Performing | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 412,320 | 352,438 |
1-4 family mortgages | Non-accrual | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 3,261 | 3,416 |
Installment | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 223,845 | 137,602 |
Installment | Performing | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 223,845 | 137,582 |
Installment | Non-accrual | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 0 | 20 |
Total consumer loans | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 1,362,307 | 1,146,924 |
Total consumer loans | Performing | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | 1,354,519 | 1,138,178 |
Total consumer loans | Non-accrual | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - Credit Quality Indicators by Class, Excluding Covered Loans (Continued) [Line Items] | ||
Credit Quality Indicators by Class | $ 7,788 | $ 8,746 |
Past Due Loans, Allowance For54
Past Due Loans, Allowance For Credit Losses, Impaired Loans and TDRS (Details) - TDRs By Class - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | |
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | $ 2,491 | $ 2,743 | ||
Non-accrual | [1] | 1,690 | 2,324 | |
Total | 4,181 | 5,067 | $ 5,137 | |
Commercial and industrial | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 289 | 294 | ||
Non-accrual | [1] | 286 | 1,050 | |
Total | 575 | 1,344 | ||
Office, retail, and industrial | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 159 | 164 | ||
Non-accrual | [1] | 0 | 0 | |
Total | 159 | 164 | ||
Multi-family | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 591 | 598 | ||
Non-accrual | [1] | 177 | 186 | |
Total | 768 | 784 | ||
Other commercial real estate | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 329 | 340 | ||
Non-accrual | [1] | 0 | 0 | |
Total | 329 | 340 | ||
Total commercial real estate | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 1,079 | 1,102 | ||
Non-accrual | [1] | 177 | 186 | |
Total | 1,256 | 1,288 | ||
Total corporate loans | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 1,368 | 1,396 | ||
Non-accrual | [1] | 463 | 1,236 | |
Total | 1,831 | 2,632 | ||
Home equity | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 286 | 494 | ||
Non-accrual | [1] | 826 | 667 | |
Total | 1,112 | 1,161 | ||
1-4 family mortgages | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 837 | 853 | ||
Non-accrual | [1] | 401 | 421 | |
Total | 1,238 | 1,274 | ||
Consumer | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing | 1,123 | 1,347 | ||
Non-accrual | [1] | 1,227 | 1,088 | |
Total | $ 2,350 | $ 2,435 | ||
[1] | These TDRs are included in non-accrual loans in the preceding tables. |
Past Due Loans, Allowance For55
Past Due Loans, Allowance For Credit Losses, Impaired Loans and TDRS (Details) - Narrative - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Valuation allowance on TDR loans | $ 0 | $ 758,000 |
Commitments to lend additional funds TDRs | $ 0 | $ 0 |
Past Due Loans, Allowance For56
Past Due Loans, Allowance For Credit Losses, Impaired Loans and TDRS (Details) - TDR Rollforward - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Troubled Debt Restructuring Activity Rollforward [Roll Forward] | ||||
Beginning balance | $ 5,067 | |||
Ending balance | $ 4,181 | $ 5,137 | 4,181 | $ 5,137 |
Accruing | ||||
Troubled Debt Restructuring Activity Rollforward [Roll Forward] | ||||
Beginning balance | 2,702 | 3,581 | 2,743 | 3,704 |
Net payments received | (28) | (349) | (69) | (391) |
Net transfers to non-accrual | (183) | (165) | (183) | (246) |
Ending balance | 2,491 | 3,067 | 2,491 | 3,067 |
Non-accrual | ||||
Troubled Debt Restructuring Activity Rollforward [Roll Forward] | ||||
Beginning balance | 2,268 | 1,996 | 2,324 | 19,904 |
Net payments received | (522) | (55) | (578) | (15,454) |
Charge-offs | (239) | (36) | (239) | (2,626) |
Net transfers from accruing | 183 | 165 | 183 | 246 |
Ending balance | $ 1,690 | $ 2,070 | $ 1,690 | $ 2,070 |
Borrowed Funds - Summary of Bor
Borrowed Funds - Summary of Borrowed Funds (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Securities sold under agreements to repurchase | $ 124,744 | $ 155,196 |
FHLB advances | 325,000 | 9,900 |
Total borrowed funds | $ 449,744 | $ 165,096 |
Borrowed Funds - Narrative (Det
Borrowed Funds - Narrative (Details) | Jun. 30, 2016 |
Minimum | |
Short-term Debt [Line Items] | |
FHLB fixed interest rate | 0.46% |
Maximum | |
Short-term Debt [Line Items] | |
FHLB fixed interest rate | 0.58% |
Senior and Subordinated Debt (D
Senior and Subordinated Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | Apr. 01, 2016 | ||
Senior and Subordinated Debt [Line Items] | ||||
Total junior subordinated debentures | $ 47,924 | $ 47,818 | ||
Total senior and subordinated debt | $ 162,876 | $ 201,208 | ||
Senior notes | ||||
Senior and Subordinated Debt [Line Items] | ||||
Issuance Date | Nov. 22, 2011 | |||
Maturity Date | Nov. 22, 2016 | |||
Interest Rate | 5.875% | 5.875% | ||
Senior notes | $ 114,952 | $ 114,891 | ||
Maturing long-term debt | $ 115,000 | |||
Subordinated notes | ||||
Senior and Subordinated Debt [Line Items] | ||||
Issuance Date | Mar. 1, 2006 | |||
Maturity Date | Apr. 1, 2016 | |||
Interest Rate | 5.85% | 5.85% | ||
Subordinated debt | $ 0 | $ 38,499 | $ 38,500 | |
Junior Subordinated Debentures, First Midwest Capital Trust I | First Midwest Capital Trust I (FMCT) | ||||
Senior and Subordinated Debt [Line Items] | ||||
Issuance Date | Nov. 11, 2003 | |||
Maturity Date | Dec. 1, 2033 | |||
Interest Rate | 6.95% | 6.95% | ||
Total junior subordinated debentures | $ 37,799 | $ 37,799 | ||
Junior Subordinated Debentures Great Lakes Statutory Trust II | Great Lakes Statutory Trust II (GLST II) | ||||
Senior and Subordinated Debt [Line Items] | ||||
Issuance Date | Dec. 15, 2005 | |||
Maturity Date | Dec. 15, 2035 | |||
Basis spread on variable rate | [1],[2] | 1.40% | 1.40% | |
Total junior subordinated debentures | [2] | $ 4,344 | $ 4,296 | |
Acquisition discount | $ 1,800 | $ 1,900 | ||
Junior Subordinated Debentures, Great Lakes Statutory Trust III | Great Lakes Statutory Trust III (GLST III) | ||||
Senior and Subordinated Debt [Line Items] | ||||
Issuance Date | Jun. 21, 2007 | |||
Maturity Date | Sep. 21, 2037 | |||
Basis spread on variable rate | [1],[2] | 1.70% | 1.70% | |
Total junior subordinated debentures | [2] | $ 5,781 | $ 5,723 | |
Acquisition discount | $ 2,500 | $ 2,500 | ||
[1] | The interest rates are a variable rate based on the three-month LIBOR plus 1.400% and 1.700% for GLST II and GLST III, respectively. | |||
[2] | The junior subordinated debentures related to GLST II and GLST III were assumed by the Company during 2014 through the acquisition of Great Lakes Financial Resources, Inc., the holding company for Great Lakes Bank. These amounts include acquisition adjustments which resulted in a discount of $1.8 million to GLST II and $2.5 million to GLST III as of JuneĀ 30, 2016 and $1.9 million to GLST II and $2.5 million to GLST III as of DecemberĀ 31, 2015. |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - Basic and Diluted Earnings Per Common Share - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Earnings Per Share [Abstract] | |||||
Net income | $ 25,267 | $ 22,574 | $ 43,229 | $ 42,456 | |
Net income applicable to non-vested restricted shares | (290) | (249) | (502) | (477) | |
Net income applicable to common shares | $ 24,977 | $ 22,325 | $ 42,727 | $ 41,979 | |
Weighted-average common shares outstanding (in Shares) | 80,383 | 77,089 | 79,182 | 77,004 | |
Dilutive effect of common stock equivalents (in Shares) | 13 | 12 | 12 | 12 | |
Weighted-average diluted common shares outstanding (in Shares) | 80,396 | 77,101 | 79,194 | 77,016 | |
Basic EPS (in Dollars per share) | $ 0.31 | $ 0.29 | $ 0.54 | $ 0.55 | |
Diluted EPS (in Dollars per share) | $ 0.31 | $ 0.29 | $ 0.54 | $ 0.55 | |
Anti-dilutive shares not included in the computation of diluted EPS (in Shares) | [1] | 469 | 768 | 539 | 857 |
[1] | This amount represents outstanding stock options for which the exercise price is greater than the average market price of the Company's common stock. |
Derivative Instruments and He61
Derivative Instruments and Hedging Activities (Details) - Fair Value Hedges - Fair Value Hedging - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gross notional amount outstanding | $ 11,016 | $ 11,620 | |
Derivative liability fair value | $ (528) | $ (643) | |
Weighted-average interest rate received | 2.37% | 2.25% | |
Weighted-average interest rate paid | 6.35% | 6.36% | |
Weighted-average maturity (in years) | 1 year 5 months 25 days | 1 year 11 months 18 days | |
Fair value of derivative | [1] | $ 547 | $ 665 |
[1] | This amount represents the fair value if credit risk related contingent features were triggered. |
Derivative Instruments and He62
Derivative Instruments and Hedging Activities (Details) - Narrative - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Derivative notional amount, cash flow hedge, received fixed pay variable interest rate swap | $ 710,000 | $ 710,000 | |||
Derivative notional amount, cash flow hedge, forward starting interest rate swap | 710,000 | 710,000 | |||
Derivative notional amount of cash flow hedge received, variable pay fixed interest rate swap | 325,000 | 325,000 | |||
Interest rate cash flow hedge gain (loss) to be reclassified during the next 12 months, net | 3,800 | 3,800 | |||
Derivative transaction fees | $ 2,100 | $ 818 | $ 5,300 | $ 1,500 | |
Portion of fair value of outstanding interest rate swaps covered by collateral agreements (percent) | 100.00% | 100.00% | 100.00% |
Derivative Instruments and He63
Derivative Instruments and Hedging Activities (Details) - Cash Flow Hedges - Cash Flow Hedging - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross notional amount outstanding | $ 1,420,000,000 | $ 1,220,000,000 |
Derivative asset fair value | 20,683,000 | 4,787,000 |
Derivative liability fair value | $ (19,647,000) | $ (8,950,000) |
Weighted-average interest rate received | 1.28% | 1.24% |
Weighted-average interest rate paid | 1.01% | 0.75% |
Weighted-average maturity (in years) | 3 years 3 months 15 days | 3 years 10 months 28 days |
Derivative Instruments and He64
Derivative Instruments and Hedging Activities (Details) - Other Derivative Instruments - Other Derivative Instruments - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Gross notional amount outstanding | $ 1,242,040 | $ 853,385 | |
Derivative asset fair value | 31,868 | 11,446 | |
Derivative liability fair value | (31,868) | (11,446) | |
Fair value of derivative | [1] | $ 32,426 | $ 11,939 |
[1] | This amount represents the fair value if credit risk related contingent features were triggered. |
Derivative Instruments and He65
Derivative Instruments and Hedging Activities (Details) - Offsetting Derivatives - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Assets | |||
Gross amounts recognized | $ 52,551 | $ 16,233 | |
Less: amounts offset in the Consolidated Statements of Financial Condition | 0 | 0 | |
Net amount presented in the Consolidated Statements of Financial Condition | [1] | 52,551 | 16,233 |
Offsetting derivative positions | (20,830) | (4,791) | |
Cash collateral pledged | 0 | 0 | |
Derivative Asset, Net credit exposure | 31,721 | 11,442 | |
Liabilities | |||
Gross amounts recognized | 52,043 | 21,039 | |
Less: amounts offset in the Consolidated Statements of Financial Condition | 0 | 0 | |
Net amount presented in the Consolidated Statements of Financial Condition | [1] | 52,043 | 21,039 |
Offsetting derivative positions | (20,830) | (4,791) | |
Cash collateral pledged | (31,213) | (16,248) | |
Derivative Liability, Net credit exposure | $ 0 | $ 0 | |
[1] | Included in other assets or other liabilities in the Consolidated Statements of Financial Condition. |
Commitments, Guarantees, and 66
Commitments, Guarantees, and Contingent Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Commitments to extend credit: | |||
Commercial, industrial, and agricultural | $ 1,393,434 | $ 1,303,056 | |
Commercial real estate | 361,156 | 366,250 | |
Home equity | 381,022 | 352,114 | |
Other commitments | [1] | 213,437 | 203,121 |
Total commitments to extend credit | 2,349,049 | 2,224,541 | |
Letters of credit | 104,933 | 100,610 | |
Recourse on assets sold: | |||
Unpaid principal balance of loans sold | 190,294 | 196,389 | |
Carrying value of recourse obligation | [2] | $ 179 | $ 87 |
[1] | Other commitments includes installment and overdraft protection program commitments. | ||
[2] | Included in other liabilities in the Consolidated Statements of Financial Condition |
Fair Value (Details) - Fair Val
Fair Value (Details) - Fair Value Measurements - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Trading securities: | |||||||
Total trading securities | $ 17,693 | $ 16,894 | |||||
Securities available-for-sale: | |||||||
CDOs | 30,431 | $ 30,757 | 31,529 | $ 32,004 | $ 33,928 | $ 33,774 | |
Total securities available-for-sale | 1,773,759 | 1,306,636 | |||||
Mortgage servicing rights (MSRs) | 4,938 | $ 5,022 | 1,853 | $ 1,820 | $ 1,773 | $ 1,728 | |
Level 1 | |||||||
Trading securities: | |||||||
Money market funds | 1,517 | 2,530 | |||||
Mutual funds | 16,176 | 14,364 | |||||
Total trading securities | 17,693 | 16,894 | |||||
Securities available-for-sale: | |||||||
U.S. treasury securities | 38,889 | 16,980 | |||||
U.S. agency securities | 0 | 0 | |||||
CMOs | 0 | 0 | |||||
MBSs | 0 | 0 | |||||
Municipal securities | 0 | 0 | |||||
CDOs | 0 | 0 | |||||
Equity securities | 0 | 0 | |||||
Total securities available-for-sale | 38,889 | 16,980 | |||||
Mortgage servicing rights (MSRs) | [1] | 0 | 0 | ||||
Derivative assets | [1] | 0 | 0 | ||||
Liabilities: | |||||||
Derivative liabilities | [2] | 0 | 0 | ||||
Level 2 | |||||||
Trading securities: | |||||||
Money market funds | 0 | 0 | |||||
Mutual funds | 0 | 0 | |||||
Total trading securities | 0 | 0 | |||||
Securities available-for-sale: | |||||||
U.S. treasury securities | 0 | 0 | |||||
U.S. agency securities | 199,231 | 86,643 | |||||
CMOs | 920,735 | 687,185 | |||||
MBSs | 286,657 | 153,530 | |||||
Municipal securities | 294,564 | 327,570 | |||||
CDOs | 0 | 0 | |||||
Equity securities | 3,252 | 3,199 | |||||
Total securities available-for-sale | 1,704,439 | 1,258,127 | |||||
Mortgage servicing rights (MSRs) | [1] | 0 | 0 | ||||
Derivative assets | [1] | 52,551 | 16,233 | ||||
Liabilities: | |||||||
Derivative liabilities | [2] | 52,043 | 21,039 | ||||
Level 3 | |||||||
Trading securities: | |||||||
Money market funds | 0 | 0 | |||||
Mutual funds | 0 | 0 | |||||
Total trading securities | 0 | 0 | |||||
Securities available-for-sale: | |||||||
U.S. treasury securities | 0 | 0 | |||||
U.S. agency securities | 0 | 0 | |||||
CMOs | 0 | 0 | |||||
MBSs | 0 | 0 | |||||
Municipal securities | 0 | 0 | |||||
CDOs | 30,431 | 31,529 | |||||
Equity securities | 0 | 0 | |||||
Total securities available-for-sale | 30,431 | 31,529 | |||||
Mortgage servicing rights (MSRs) | [1] | 4,938 | 1,853 | ||||
Derivative assets | [1] | 0 | 0 | ||||
Liabilities: | |||||||
Derivative liabilities | [2] | $ 0 | $ 0 | ||||
[1] | Included in other assets in the Consolidated Statements of Financial Condition. | ||||||
[2] | Included in other liabilities in the Consolidated Statements of Financial Condition. |
Fair Value (Details) - Unobserv
Fair Value (Details) - Unobservable Inputs Used In The Valuation of CDOs | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Probability of prepayment | 1.80% | 1.80% |
Probability of default | 18.70% | 19.10% |
Loss given default | 92.80% | 93.80% |
Probability of deferral cure | 20.60% | 15.20% |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Probability of prepayment | 15.10% | 15.10% |
Probability of default | 49.70% | 32.60% |
Loss given default | 98.40% | 97.10% |
Probability of deferral cure | 100.00% | 63.10% |
Fair Value (Details) - Carrying
Fair Value (Details) - Carrying Value of Level 3 Securities Available-for-Sale - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Rollforward of the Carrying Value of CDOs [Roll Forward] | |||||
Beginning balance | $ 30,757 | $ 33,928 | $ 31,529 | $ 33,774 | |
Change in other comprehensive income | [1] | (244) | (1,798) | (1,030) | (1,498) |
Paydowns | (82) | (126) | (68) | (272) | |
Ending balance | $ 30,431 | $ 32,004 | $ 30,431 | $ 32,004 | |
[1] | Included in unrealized holding gains in the Consolidated Statements of Comprehensive Income. |
Fair Value (Details) - Narrativ
Fair Value (Details) - Narrative - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value (Details) [Line Items] | ||
Total amount of loans being serviced for the benefit of others at the end of the period | $ 603 | $ 242.9 |
Loans serviced for others | $ 339.1 | |
Minimum | ||
Fair Value (Details) [Line Items] | ||
Appraisal adjustment (percent) | 0.00% | |
Maximum | ||
Fair Value (Details) [Line Items] | ||
Appraisal adjustment (percent) | 15.00% |
Fair Value (Details) - Signific
Fair Value (Details) - Significant Unobservable Inputs Used In the Valuation of MSRs | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Minimum | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Prepayment speed | 9.10% | 10.10% |
Maturity (months) | 2 months | 6 months |
Discount rate | 9.50% | 9.50% |
Maximum | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Prepayment speed | 28.00% | 20.90% |
Maturity (months) | 85 months | 86 months |
Discount rate | 13.00% | 13.00% |
Fair Value (Details) - Carryi72
Fair Value (Details) - Carrying Value of Mortgage Servicing Rights - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Beginning balance | $ 5,022 | $ 1,773 | $ 1,853 | $ 1,728 | |
Additions from acquisition | 0 | 0 | 3,092 | 0 | |
New MSRs | 162 | 98 | 347 | 243 | |
(Losses) gains included in earnings: | |||||
Changes in valuation inputs and assumptions | [1] | (132) | 12 | (172) | (39) |
Other changes in fair value | [1],[2] | (114) | (63) | (182) | (112) |
Ending balance | 4,938 | 1,820 | 4,938 | 1,820 | |
Contractual servicing fees earned | [1] | $ 366 | $ 135 | $ 549 | $ 268 |
[1] | Included in mortgage banking income in the Condensed Consolidated Statements of Income and related to assets held as of JuneĀ 30, 2016 and 2015. | ||||
[2] | Primarily represents changes in expected future cash flows due to payoffs and paydowns. |
Fair Value (Details) - Assets M
Fair Value (Details) - Assets Measured At Fair Value On A Non-Recurring Basis - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Level 1 | |||
Fair Value (Details) - Assets Measured At Fair Value On A Non-Recurring Basis [Line Items] | |||
Collateral-dependent impaired loans | [1] | $ 0 | $ 0 |
OREO | [2] | 0 | 0 |
Loans held-for-sale | [3] | 0 | 0 |
Assets held-for-sale | [4] | 0 | 0 |
Level 2 | |||
Fair Value (Details) - Assets Measured At Fair Value On A Non-Recurring Basis [Line Items] | |||
Collateral-dependent impaired loans | [1] | 0 | 0 |
OREO | [2] | 0 | 0 |
Loans held-for-sale | [3] | 0 | 0 |
Assets held-for-sale | [4] | 0 | 0 |
Level 3 | |||
Fair Value (Details) - Assets Measured At Fair Value On A Non-Recurring Basis [Line Items] | |||
Collateral-dependent impaired loans | [1] | 11,260 | 10,519 |
OREO | [2] | 2,160 | 8,581 |
Loans held-for-sale | [3] | 18,144 | 14,444 |
Assets held-for-sale | [4] | $ 4,851 | $ 7,428 |
[1] | Includes impaired loans with charge-offs and impaired loans with a specific reserve during the periods presented. | ||
[2] | Includes OREO with fair value adjustments subsequent to initial transfer that occurred during the periods presented. | ||
[3] | Included in other assets in the Consolidated Statements of Financial Condition. | ||
[4] | Included in premises, furniture, and equipment in the Consolidated Statements of Financial Condition. |
Fair Value (Details) - Financia
Fair Value (Details) - Financial Instruments - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Cash and due from banks | $ 149,957 | $ 114,587 |
Interest-bearing deposits in other banks | 105,432 | 266,615 |
Securities held-to-maturity, at amortized cost | 20,672 | 23,152 |
FHLB and FRB stock | 44,506 | 39,306 |
Loans | 7,899,432 | 7,088,085 |
Investment in BOLI | 218,133 | 209,601 |
Liabilities: | ||
Deposits | 8,971,316 | 8,097,738 |
Senior and subordinated debt | 162,876 | 201,208 |
Level 1 | ||
Assets: | ||
Cash and due from banks | 149,957 | 114,587 |
Liabilities: | ||
Senior and subordinated debt | 164,753 | 205,726 |
Level 2 | ||
Assets: | ||
Interest-bearing deposits in other banks | 105,432 | 266,615 |
Securities held-to-maturity, at amortized cost | 18,394 | 20,054 |
FHLB and FRB stock | 44,506 | 39,306 |
Liabilities: | ||
Deposits | 8,973,012 | 8,093,640 |
Borrowed funds | 449,744 | 165,096 |
Accrued interest payable | 2,309 | 2,175 |
Level 3 | ||
Assets: | ||
Loans | 7,846,563 | 6,959,024 |
Investment in BOLI | 218,133 | 209,601 |
Accrued interest receivable | 30,167 | 27,847 |
Other interest-earning assets | 1,307 | 1,982 |
Carrying Amount | Level 1 | ||
Assets: | ||
Cash and due from banks | 149,957 | 114,587 |
Liabilities: | ||
Senior and subordinated debt | 162,876 | 201,208 |
Carrying Amount | Level 2 | ||
Assets: | ||
Interest-bearing deposits in other banks | 105,432 | 266,615 |
Securities held-to-maturity, at amortized cost | 20,672 | 23,152 |
FHLB and FRB stock | 44,506 | 39,306 |
Liabilities: | ||
Deposits | 8,971,316 | 8,097,738 |
Borrowed funds | 449,744 | 165,096 |
Accrued interest payable | 2,309 | 2,175 |
Carrying Amount | Level 3 | ||
Assets: | ||
Loans | 7,905,390 | 7,091,988 |
Investment in BOLI | 218,133 | 209,601 |
Accrued interest receivable | 30,167 | 27,847 |
Other interest-earning assets | $ 1,307 | $ 1,982 |