Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 05, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-10967 | |
Entity Registrant Name | First Midwest Bancorp, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-3161078 | |
Entity Address, Address Line One | 8750 West Bryn Mawr Avenue | |
Entity Address, Address Line Two | Suite 1300 | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60631-3655 | |
City Area Code | 708 | |
Local Phone Number | 831-7483 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common stock, $0.01 Par Value | |
Trading Symbol | FMBI | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 110,473,334 | |
Amendment Flag | false | |
Entity Central Index Key | 0000702325 | |
Document Period End Date | Jun. 30, 2019 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 199,684 | $ 211,189 |
Interest-bearing deposits in other banks | 126,966 | 78,069 |
Equity securities, at fair value | 40,690 | 30,806 |
Securities available-for-sale, at fair value | 2,793,316 | 2,272,009 |
Securities held-to-maturity, at amortized cost | 23,277 | 10,176 |
Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock, at cost | 109,466 | 80,302 |
Loans | 12,519,604 | 11,446,783 |
Allowance for loan losses | (105,729) | (102,219) |
Net loans | 12,413,875 | 11,344,564 |
Other real estate owned (OREO) | 15,313 | 12,821 |
Premises, furniture, and equipment, net | 148,347 | 132,502 |
Investment in bank-owned life insurance (BOLI) | 297,118 | 296,733 |
Goodwill and other intangible assets | 878,802 | 790,744 |
Accrued interest receivable and other assets | 415,379 | 245,734 |
Total assets | 17,462,233 | 15,505,649 |
Liabilities | ||
Noninterest-bearing deposits | 3,748,316 | 3,642,989 |
Interest-bearing deposits | 9,440,272 | 8,441,123 |
Total deposits | 13,188,588 | 12,084,112 |
Borrowed funds | 1,407,378 | 906,079 |
Senior and subordinated debt | 233,538 | 203,808 |
Accrued interest payable and other liabilities | 332,156 | 256,652 |
Total liabilities | 15,161,660 | 13,450,651 |
Stockholders' Equity | ||
Common stock | 1,204 | 1,157 |
Additional paid-in capital | 1,205,396 | 1,114,580 |
Retained earnings | 1,304,756 | 1,192,767 |
Accumulated other comprehensive loss, net of tax | (2,810) | (52,512) |
Treasury stock, at cost | (207,973) | (200,994) |
Total stockholders' equity | 2,300,573 | 2,054,998 |
Total liabilities and stockholders' equity | $ 17,462,233 | $ 15,505,649 |
Stockholders' Equity, Number of Shares, Par Value, and Other Disclosures | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 120,407,000 | 115,672,000 |
Common stock, shares outstanding (in shares) | 110,589,000 | 106,375,000 |
Treasury stock, shares (in shares) | 9,818,000 | 9,297,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest Income | ||||
Loans | $ 157,680 | $ 127,737 | $ 302,484 | $ 246,423 |
Investment securities | 18,005 | 13,010 | 34,011 | 24,766 |
Other short-term investments | 1,997 | 1,341 | 3,677 | 2,244 |
Total interest income | 177,682 | 142,088 | 340,172 | 273,433 |
Interest Expense | ||||
Deposits | 19,316 | 8,032 | 35,918 | 14,211 |
Borrowed funds | 4,459 | 3,513 | 8,010 | 6,992 |
Senior and subordinated debt | 3,595 | 3,140 | 6,908 | 6,264 |
Total interest expense | 27,370 | 14,685 | 50,836 | 27,467 |
Net interest income | 150,312 | 127,403 | 289,336 | 245,966 |
Provision for loan losses | 11,491 | 11,614 | 21,935 | 26,795 |
Net interest income after provision for loan losses | 138,821 | 115,789 | 267,401 | 219,171 |
Noninterest Income | ||||
Service charges on deposit accounts | 12,196 | 12,058 | 23,736 | 23,710 |
Wealth management fees | 12,190 | 10,981 | 23,790 | 21,939 |
Card-based fees | 4,549 | 4,394 | 8,927 | 8,327 |
Capital market products income | 2,154 | 2,819 | 3,433 | 4,377 |
Mortgage banking income | 1,901 | 1,736 | 2,905 | 4,133 |
Other service charges, commissions, and fees | 2,783 | 2,838 | 5,394 | 5,386 |
Other income | 2,753 | 2,121 | 5,247 | 4,592 |
Total noninterest income | 38,526 | 36,947 | 73,432 | 72,464 |
Noninterest Expense | ||||
Salaries and employee benefits | 58,692 | 57,932 | 116,065 | 114,719 |
Net occupancy and equipment expense | 13,671 | 13,651 | 28,441 | 27,424 |
Professional services | 10,467 | 8,298 | 18,255 | 15,878 |
Technology and related costs | 4,908 | 4,837 | 9,504 | 9,608 |
Net OREO expense | 294 | (256) | 975 | 812 |
Other expenses | 16,154 | 13,939 | 29,107 | 25,542 |
Delivering Excellence implementation costs | 442 | 15,015 | 700 | 15,015 |
Acquisition and integration related expenses | 9,514 | 0 | 13,205 | 0 |
Total noninterest expense | 114,142 | 113,416 | 216,252 | 208,998 |
Income before income tax expense | 63,205 | 39,320 | 124,581 | 82,637 |
Income tax expense | 16,191 | 9,720 | 31,509 | 19,527 |
Net income | $ 47,014 | $ 29,600 | $ 93,072 | $ 63,110 |
Per Common Share Data | ||||
Basic earnings per common share (in dollars per share) | $ 0.43 | $ 0.29 | $ 0.86 | $ 0.61 |
Diluted earnings per common share (in dollars per share) | 0.43 | 0.29 | 0.86 | 0.61 |
Dividends declared per common share (in dollars per share) | $ 0.14 | $ 0.11 | $ 0.26 | $ 0.22 |
Weighted-average common shares outstanding (in Shares) | 108,467 | 102,159 | 107,126 | 102,041 |
Weighted-average diluted common shares outstanding (in Shares) | 108,467 | 102,159 | 107,126 | 102,049 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 47,014 | $ 29,600 | $ 93,072 | $ 63,110 |
Unrealized holding gains (losses): | ||||
Before tax | 38,237 | (8,980) | 64,989 | (34,133) |
Tax effect | (10,649) | 2,535 | (18,100) | 9,507 |
Net of tax | 27,588 | (6,445) | 46,889 | (24,626) |
Derivative Instruments | ||||
Before tax | 2,441 | 3,899 | ||
Before tax | (590) | (68) | ||
Tax effect | (680) | (1,086) | ||
Tax effect | 166 | 19 | ||
Net of tax | 1,761 | 2,813 | ||
Net of tax | (424) | (49) | ||
Total other comprehensive income (loss) | 29,349 | (6,869) | 49,702 | (24,675) |
Total comprehensive income | $ 76,363 | $ 22,731 | $ 142,774 | $ 38,435 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income - AOCI - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 2,054,998 | $ 1,864,874 | ||
Adjustments to apply recent accounting pronouncements | [1] | $ 0 | ||
Ending balance | 2,300,573 | 1,883,563 | ||
Accumulated Unrealized (Loss) Gain on Securities Available- for-Sale | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (28,792) | (13,976) | ||
Adjustments to apply recent accounting pronouncements | [2] | (2,864) | ||
Other comprehensive income (loss) | 46,889 | (24,626) | ||
Ending balance | 18,097 | (41,466) | ||
Accumulated Unrealized (Loss) Gain on Derivative Instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (2,550) | (3,763) | ||
Adjustments to apply recent accounting pronouncements | [2] | (784) | ||
Other comprehensive income (loss) | 2,813 | (49) | ||
Ending balance | 263 | (4,596) | ||
Unrecognized Net Pension Costs | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (21,170) | (15,297) | ||
Adjustments to apply recent accounting pronouncements | [2] | (3,041) | ||
Other comprehensive income (loss) | 0 | 0 | ||
Ending balance | (21,170) | (18,338) | ||
Total Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (52,512) | (33,036) | ||
Adjustments to apply recent accounting pronouncements | [1],[2] | $ (6,689) | ||
Other comprehensive income (loss) | 49,702 | (24,675) | ||
Ending balance | $ (2,810) | $ (64,400) | ||
[1] | As a result of accounting guidance adopted in the first quarter of 2018, certain reclassifications were made from accumulated other comprehensive loss to retained earnings as of January 1, 2018. | |||
[2] | As a result of accounting guidance adopted in the first quarter of 2018, certain reclassifications were made from accumulated other comprehensive loss to retained earnings as of January 1, 2018. |
Consolidated Statements of Chan
Consolidated Statements of Changes In Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2017 | 102,717,000 | |||||
Beginning balance at Dec. 31, 2017 | $ 1,864,874 | $ 1,123 | $ 1,031,870 | $ 1,074,990 | $ (33,036) | $ (210,073) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 63,110 | 63,110 | ||||
Other comprehensive income (loss) | (24,675) | (24,675) | ||||
Common dividends declared ($0.11 and $0.14 per common share for the quarter ended June 30, 2018 and 2019, respectively and $0.22 and $0.26 per common share for the six months ended June 30, 2018 and 2019, respectively) | (22,682) | (22,682) | ||||
Acquisitions, net of issuance costs | 0 | |||||
Common stock issued (in shares) | 5,000 | |||||
Common stock issued | 829 | $ 1 | 161 | 667 | ||
Restricted stock activity (in shares) | 339,000 | |||||
Restricted stock activity | (4,047) | (12,558) | 8,511 | |||
Treasury stock issued to benefit plans (in shares) | (2,000) | |||||
Treasury stock issued to benefit plans | (42) | 34 | (76) | |||
Share-based compensation expense | 6,196 | 6,196 | ||||
Ending balance (in shares) at Jun. 30, 2018 | 103,059,000 | |||||
Ending balance at Jun. 30, 2018 | 1,883,563 | $ 1,124 | 1,025,703 | 1,122,107 | (64,400) | (200,971) |
Beginning balance (in shares) at Mar. 31, 2018 | 103,092,000 | |||||
Beginning balance at Mar. 31, 2018 | 1,869,287 | $ 1,123 | 1,021,923 | 1,103,840 | (57,531) | (200,068) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 29,600 | 29,600 | ||||
Other comprehensive income (loss) | (6,869) | (6,869) | ||||
Common dividends declared ($0.11 and $0.14 per common share for the quarter ended June 30, 2018 and 2019, respectively and $0.22 and $0.26 per common share for the six months ended June 30, 2018 and 2019, respectively) | (11,333) | (11,333) | ||||
Common stock issued (in shares) | 4,000 | |||||
Common stock issued | 68 | $ 1 | 67 | |||
Restricted stock activity (in shares) | (38,000) | |||||
Restricted stock activity | (49) | 872 | (921) | |||
Treasury stock issued to benefit plans (in shares) | 1,000 | |||||
Treasury stock issued to benefit plans | 30 | 12 | 18 | |||
Share-based compensation expense | 2,829 | 2,829 | ||||
Ending balance (in shares) at Jun. 30, 2018 | 103,059,000 | |||||
Ending balance at Jun. 30, 2018 | $ 1,883,563 | $ 1,124 | 1,025,703 | 1,122,107 | (64,400) | (200,971) |
Beginning balance (in shares) at Dec. 31, 2018 | 106,375,000 | 106,375,000 | ||||
Beginning balance at Dec. 31, 2018 | $ 2,054,998 | $ 1,157 | 1,114,580 | 1,192,767 | (52,512) | (200,994) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 93,072 | 93,072 | ||||
Other comprehensive income (loss) | 49,702 | 49,702 | ||||
Common dividends declared ($0.11 and $0.14 per common share for the quarter ended June 30, 2018 and 2019, respectively and $0.22 and $0.26 per common share for the six months ended June 30, 2018 and 2019, respectively) | (28,340) | (28,340) | ||||
Repurchases of common stock (in shares) | (1,042,000) | |||||
Repurchases of common stock | (21,190) | (21,190) | ||||
Acquisitions, net of issuance costs (in shares) | 4,879,000 | |||||
Acquisitions, net of issuance costs | 101,496 | $ 47 | 97,351 | 4,098 | ||
Common stock issued (in shares) | 30,000 | |||||
Common stock issued | 605 | $ 0 | (69) | 674 | ||
Restricted stock activity (in shares) | 353,000 | |||||
Restricted stock activity | (3,770) | (13,320) | 9,550 | |||
Treasury stock issued to benefit plans (in shares) | (6,000) | |||||
Treasury stock issued to benefit plans | (120) | (9) | (111) | |||
Share-based compensation expense | $ 6,863 | 6,863 | ||||
Ending balance (in shares) at Jun. 30, 2019 | 110,589,000 | 110,589,000 | ||||
Ending balance at Jun. 30, 2019 | $ 2,300,573 | $ 1,204 | 1,205,396 | 1,304,756 | (2,810) | (207,973) |
Beginning balance (in shares) at Mar. 31, 2019 | 106,900,000 | |||||
Beginning balance at Mar. 31, 2019 | 2,159,471 | $ 1,157 | 1,103,991 | 1,273,245 | (32,159) | (186,763) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 47,014 | 47,014 | ||||
Other comprehensive income (loss) | 29,349 | 29,349 | ||||
Common dividends declared ($0.11 and $0.14 per common share for the quarter ended June 30, 2018 and 2019, respectively and $0.22 and $0.26 per common share for the six months ended June 30, 2018 and 2019, respectively) | (15,503) | (15,503) | ||||
Repurchases of common stock (in shares) | (1,042,000) | |||||
Repurchases of common stock | (21,190) | (21,190) | ||||
Acquisitions, net of issuance costs (in shares) | 4,729,000 | |||||
Acquisitions, net of issuance costs | 98,212 | $ 47 | 98,165 | |||
Common stock issued (in shares) | 3,000 | |||||
Common stock issued | 68 | 68 | ||||
Restricted stock activity (in shares) | 1,000 | |||||
Restricted stock activity | 5 | (7) | 12 | |||
Treasury stock issued to benefit plans (in shares) | (2,000) | |||||
Treasury stock issued to benefit plans | (37) | (5) | (32) | |||
Share-based compensation expense | $ 3,184 | 3,184 | ||||
Ending balance (in shares) at Jun. 30, 2019 | 110,589,000 | 110,589,000 | ||||
Ending balance at Jun. 30, 2019 | $ 2,300,573 | $ 1,204 | $ 1,205,396 | $ 1,304,756 | $ (2,810) | $ (207,973) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes In Stockholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 0.14 | $ 0.11 | $ 0.26 | $ 0.22 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Activities | ||
Net income | $ 93,072 | $ 63,110 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 21,935 | 26,795 |
Depreciation of premises, furniture, and equipment | 8,093 | 7,584 |
Net amortization of premium on securities | 6,609 | 7,738 |
Gains on sales of 1-4 family mortgages and corporate loans held-for-sale | (3,391) | (3,134) |
Net (gains) losses on sales and valuation adjustments of OREO | (1,169) | 493 |
Amortization of the FDIC indemnification asset | 604 | 604 |
Net losses on sales and valuation adjustments of premises, furniture, and equipment | 1,252 | 5,449 |
BOLI income | (3,645) | (2,877) |
Share-based compensation expense | 6,863 | 6,196 |
Tax benefit related to share-based compensation | 160 | 158 |
Amortization of other intangible assets | 4,987 | 3,596 |
Originations of mortgage loans held-for-sale | (164,398) | (114,142) |
Proceeds from sales of mortgage loans held-for-sale | 154,191 | 130,900 |
Net increase in equity securities | (2,918) | (586) |
Net decrease in accrued interest receivable and other assets | 19,027 | 8,072 |
Net (decrease) increase in accrued interest payables and other liabilities | (36,151) | 16,100 |
Net cash provided by operating activities | 105,121 | 156,056 |
Investing Activities | ||
Proceeds from maturities, repayments, and calls of securities available-for-sale | 167,502 | 154,136 |
Proceeds from sales of securities available-for-sale | 93,332 | 0 |
Purchases of securities available-for-sale | (460,066) | (462,071) |
Proceeds from maturities, repayments, and calls of securities held-to-maturity | 3,162 | 718 |
Purchases of securities held-to-maturity | (2,837) | 0 |
Net purchases of FHLB stock | (27,683) | (13,070) |
Net increase in loans | (394,713) | (479,514) |
Premiums paid on BOLI, net of proceeds from claims | 3,260 | 113 |
Proceeds from sales of OREO | 5,236 | 8,638 |
Proceeds from sales of premises, furniture, and equipment | 2,291 | 150 |
Purchases of premises, furniture, and equipment | (10,360) | (16,891) |
Net cash paid for acquisition | (13,532) | 0 |
Net cash used in investing activities | (634,408) | (807,791) |
Financing Activities | ||
Net increase in deposit accounts | 117,722 | 438,938 |
Net increase in borrowed funds | 499,553 | 266,160 |
Purchase of treasury stock | (21,190) | 0 |
Cash dividends paid | (25,636) | (21,619) |
Restricted stock activity | (3,770) | (4,047) |
Net cash provided by financing activities | 566,679 | 679,432 |
Net increase in cash and cash equivalents | 37,392 | 27,697 |
Cash and cash equivalents at beginning of period | 289,258 | 346,570 |
Cash and cash equivalents at end of period | 326,650 | 374,267 |
Supplemental Disclosures of Cash Flow Information: | ||
Income taxes paid (refunded) | 16,948 | (18,898) |
Interest paid to depositors and creditors | 47,750 | 25,056 |
Dividends declared, but unpaid | 15,377 | 11,248 |
Stock issued for acquisitions, net of issuance costs | 101,496 | 0 |
Non-cash transfers of loans to OREO | 322 | 1,172 |
Non-cash transfers of loans to other assets | 13,175 | 0 |
Non-cash transfers of loans held-for-investment to loans held-for-sale | 4,762 | 9,546 |
Non-cash transfer of trading securities and securities available-for-sale to equity securities | 0 | $ 27,855 |
Non-cash recognition of right-of-use asset/liability | $ 143,561 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation – 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, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . 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 2018 Annual Report on Form 10-K (" 2018 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 – 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 – 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, lease obligations, 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 2018 10-K. Business Combinations – 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 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 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 – Covered loans consists of loans acquired by the Company in Federal Deposit Insurance Corporation (" FDIC ")-assisted transactions that 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. Certain loans that were previously classified as covered loans are no longer covered under the FDIC Agreements, and are included in acquired loans. 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 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 – The Company 's accrual of interest on loans is generally 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 – 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" ) – 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 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 – 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 – 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 collateral 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 eight 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: • 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. • Changes in credit policies and procedures, such as underwriting standards and collection, charge-off, and recovery practices. • Changes in the experience, ability, and depth of credit management and other relevant staff. • Changes in the quality of the Company 's loan review system and Board of Directors oversight. • The effect of any concentration of credit and changes in the level of concentrations, such as loan type or risk rating. • Changes in the value of the underlying collateral for collateral-dependent loans. • Changes in the national and local economy that affect the collectability of various segments of the portfolio. • 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 – 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. Lease Obligations – The Company leases certain premises under non-cancelable operating leases in the normal course of business operations. These lease obligations result in the recognition of right-of-use assets and associated lease liabilities. The amount of right-of-use assets and associated lease liabilities recorded is based on the present value of future minimum lease payments. Right-of-use assets are amortized on a straight-line basis over the estimated useful lives of the related premises, and interest associated with the net present value of future minimum lease payments is included in net occupancy and equipment expense in the consolidated financial statements. Derivative Financial Instruments – 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, 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 in the same income statement line item as the earnings effect of the hedged item. 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Adopted Accounting Pronouncements Leases: In February of 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02 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. The Company adopted this guidance on January 1, 2019, which resulted in the recognition of $143.6 million of right-of-use assets and additional associated lease liabilities for its operating leases. The amount of right-of-use assets and associated lease liabilities recorded upon adoption was based on the present value of future minimum lease payments, the amount of which depended on the population of leases in effect at the date of adoption. This guidance also applies to the Company's net investment in direct financing leases, which is included in loans, but did not have a material impact. The Company has elected certain practical expedients contained in this guidance, which, among other provisions, allowed the Company to not reassess the historical lease classification, initial direct costs, or existing contracts for the inclusion of leases. The Company has also elected the practical expedients for the use of hindsight in determining the lease term and the right-of-use assets, as well as an election not to apply the recognition requirements of the guidance to leases with terms of 12 months or less. The application of hindsight practical expedient resulted in the determination that most renewal options would not be reasonably certain in determining the expected lease term. First Midwest Bank (the "Bank") entered into a sale-leaseback transaction in 2016 that resulted in a deferred gain. Upon adoption of this guidance, the remaining deferred gain of $47.3 million after tax was recognized immediately as a cumulative-effect adjustment to equity. For additional discussion of the sale-leaseback transaction, see Note 8 , " Lease Obligations ." The adoption of this guidance was applied retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment and did not materially impact the Company 's results of operations or liquidity but did result in a material increase in assets, liabilities, and equity. Premium Amortization on Purchased Callable Debt Securities: In March of 2017, the FASB issued ASU 2017-08 that shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. This guidance is effective for annual and interim periods beginning after December 15, 2018. The adoption of this guidance on January 1, 2019 did not materially impact the Company's financial condition, results of operations, or liquidity. Improvements to Nonemployee Share-based Payment Accounting: In June of 2018, the FASB issued ASU 2018-07 that aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees. This guidance is effective for annual and interim periods beginning after December 15, 2018. The adoption of this guidance on January 1, 2019 did not materially impact the Company's financial condition, results of operations, or liquidity. Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract: In August of 2018, the FASB issued ASU 2018-15 to reduce diversity in practice by clarifying when implementation costs are required to be capitalized in a cloud computing arrangement that is a service contract. This guidance is effective for annual and interim periods beginning after December 15, 2019. The early adoption of this guidance on January 1, 2019 did not materially impact the Company's financial condition, results of operations, or liquidity. Derivatives and Hedging, Inclusion of the Secured Overnight Financing Rate ("SOFR") Overnight Index Swap Rate as a Benchmark Interest Rate for Hedge Accounting Purposes: In October of 2018, the FASB issued ASU 2018-16 adding the overnight index swap rate based on the SOFR to the list of United States benchmark interest rates eligible for hedge accounting purposes. This guidance is effective for annual and interim periods beginning after December 15, 2018. The adoption of this guidance on January 1, 2019 did not materially impact the Company's financial condition, results of operations, or liquidity. Accounting Pronouncements Pending Adoption Measurement of Credit Losses on Financial Instruments: In June of 2016, the FASB issued ASU 2016-13 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. The Company will adopt this guidance on January 1, 2020. Management is continuing its implementation efforts, which are led by a cross-functional working group. Management is in the process of determining the impact on the Company's financial condition, results of operations, liquidity, and regulatory capital ratios. The extent of the impact will depend on the composition of the loan portfolio, as well as the economic conditions and forecasts as of the adoption date. Accounting for Goodwill Impairment: In January of 2017, the FASB issued ASU 2017-04 that simplifies the accounting for goodwill impairment for all entities. The new guidance eliminates the requirement to calculate the implied fair value of goodwill using the second step of the quantitative two-step goodwill impairment model prescribed under current accounting guidance. Under the new guidance, if a reporting unit's carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. This guidance is effective for annual and interim goodwill impairment testing dates beginning after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Changes to the Disclosure Requirements for Fair Value Measurement: In August of 2018, the FASB issued ASU 2018-13 that eliminates, modifies, and adds to certain fair value measurement disclosure requirements associated with the three-tiered fair value hierarchy. This guidance is effective for annual and interim periods beginning after December 15, 2019. 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. Changes to the Disclosure Requirements for Defined Benefit Plans: In August of 2018, the FASB issued ASU 2018-14 that makes minor changes and clarifications to the disclosure requirements for entities that sponsor defined benefit plans. This guidance is effective for annual and interim periods beginning after December 15, 2020. 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. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Completed Acquisitions Bridgeview Bancorp, Inc. On May 9, 2019, the Company completed its acquisition of Bridgeview Bancorp, Inc. ("Bridgeview"), the holding company for Bridgeview Bank Group. At closing, the Company acquired $1.2 billion of assets, $1.0 billion of deposits, and $709.9 million of loans, net of fair value adjustments. Under the terms of the merger agreement, on May 9, 2019, each outstanding share of Bridgeview common stock was exchanged for 0.2767 shares of Company common stock, plus $1.66 in cash. In addition, each outstanding Bridgeview stock option was exchanged for the right to receive cash. This resulted in merger consideration of $135.4 million , which consisted of 4,728,541 shares of Company stock and $37.1 million of cash. Goodwill of $57.4 million associated with the acquisition was recorded by the Company. All Bridgeview operating systems were converted to the Company's operating platform during the second quarter of 2019. The fair value adjustments, including goodwill, associated with this transaction remain preliminary and may change as the Company continues to finalize the fair value of the assets and liabilities acquired. Northern Oak Wealth Management, Inc. On January 16, 2019, the Company completed its acquisition of Northern Oak Wealth Management, Inc. ("Northern Oak"), a registered investment adviser based in Milwaukee, Wisconsin with approximately $800.0 million of assets under management at closing. The fair value adjustments, including goodwill, associated with this transaction remain preliminary and may change as the Company continues to finalize the fair value of the assets and liabilities acquired. Northern States Financial Corporation On October 12, 2018, the Company completed its acquisition of Northern States Financial Corporation ("Northern States"), the holding company for NorStates Bank, based in Waukegan, Illinois. At closing, the Company acquired $578.7 million of assets, $463.2 million of deposits, and $284.9 million of loans, net of fair value adjustments. Under the terms of the merger agreement, on October 12, 2018, each outstanding share of Northern States common stock was exchanged for 0.0363 shares of Company common stock. This resulted in merger consideration of $83.3 million , which consisted of 3,310,912 shares of Company common stock. Goodwill of $30.1 million associated with the acquisition was recorded by the Company. All Northern States operating systems were converted to the Company's operating platform during the fourth quarter of 2018. During the second quarter of 2019, the Company updated the fair value adjustments associated with the Northern States transaction. The adjustments were recognized in the current period in accordance with accounting guidance applicable to business combinations. The fair value adjustments, including goodwill, associated with this transaction remain preliminary and may change as the Company continues to finalize the fair value of the assets and liabilities acquired. The following table presents the assets acquired and liabilities assumed, net of the fair value adjustments, in the Bridgeview and Northern States 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 (Dollar amounts in thousands, except share and per share data) Bridgeview Northern States May 9, 2019 October 12, 2018 Assets Cash and due from banks and interest-bearing deposits in other banks $ 35,097 $ 160,145 Equity securities 6,966 3,915 Securities available-for-sale 263,695 47,149 Securities held-to-maturity 13,426 — FHLB and FRB stock 1,481 554 Loans 709,889 284,924 OREO 6,237 2,549 Investment in BOLI — 11,104 Goodwill 57,377 30,123 Other intangible assets 15,603 12,230 Premises, furniture, and equipment 18,145 5,964 Accrued interest receivable and other assets 33,724 20,015 Total assets $ 1,161,640 $ 578,672 Liabilities Noninterest-bearing deposits $ 179,267 $ 346,714 Interest-bearing deposits 807,487 116,446 Total deposits 986,754 463,160 Borrowed funds 1,746 18,218 Senior and subordinated debt 29,360 8,038 Accrued interest payable and other liabilities 8,428 5,953 Total liabilities 1,026,288 495,369 Consideration Paid Common stock (2019 – 4,728,541, shares issued at $28.61 per share, 2018 – 3,310,912, shares issued at $25.16 per share), net of issuance costs 98,212 83,303 Cash paid 37,140 — Total consideration paid 135,352 83,303 $ 1,161,640 $ 578,672 Expenses related to the acquisition and integration of completed and pending transactions totaled $9.5 million and $13.2 million during the quarter and six months ended June 30, 2019 , respectively, and are reported as a separate component within noninterest expense in the Condensed Consolidated Statements of Income. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | SECURITIES The significant accounting policies related to securities are presented in Note 1 , " Summary of Significant Accounting Policies " to the Consolidated Financial Statements in the Company 's 2018 10-K. 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, 2019 As of December 31, 2018 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Securities Available-for-Sale U.S. treasury securities $ 42,946 $ 162 $ (21 ) $ 43,087 $ 37,925 $ 17 $ (175 ) $ 37,767 U.S. agency securities 187,085 813 (660 ) 187,238 144,125 45 (1,607 ) 142,563 Collateralized mortgage obligations ("CMOs") 1,533,298 19,111 (2,681 ) 1,549,728 1,336,531 3,362 (24,684 ) 1,315,209 Other mortgage-backed securities ("MBSs") 666,454 6,768 (2,815 ) 670,407 477,665 520 (11,251 ) 466,934 Municipal securities 234,028 4,420 (106 ) 238,342 229,600 461 (2,874 ) 227,187 Corporate debt securities 104,427 1,068 (981 ) 104,514 86,074 — (3,725 ) 82,349 Total securities available-for-sale $ 2,768,238 $ 32,342 $ (7,264 ) $ 2,793,316 $ 2,311,920 $ 4,405 $ (44,316 ) $ 2,272,009 Securities Held-to-Maturity Municipal securities $ 23,277 $ — $ (872 ) $ 22,405 $ 10,176 $ — $ (305 ) $ 9,871 Equity Securities $ 40,690 $ 30,806 Remaining Contractual Maturity of Securities (Dollar amounts in thousands) As of June 30, 2019 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 133,657 $ 134,761 $ 8,736 $ 8,409 After one year to five years 167,113 168,493 5,982 5,758 After five years to ten years 267,707 269,918 5,531 5,324 After ten years 9 9 3,028 2,914 Securities that do not have a single contractual maturity date 2,199,752 2,220,135 — — Total $ 2,768,238 $ 2,793,316 $ 23,277 $ 22,405 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 $1.5 billion as of June 30, 2019 and $1.2 billion as of December 31, 2018 . No securities held-to-maturity were pledged as of June 30, 2019 or December 31, 2018 . During the quarters and six months ended June 30, 2019 and 2018 there were no realized gains on securities available-for-sale. Certain securities acquired in the Bridgeview transaction in the second quarter of 2019 were sold shortly after the acquisition date for $93.3 million , resulting in no gains or losses as the securities were recorded at fair value upon acquisition. 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 (loss). There was no outstanding balance of OTTI previously recognized on securities available-for-sale as of either June 30, 2019 or December 31, 2018 . During the quarters and six months ended June 30, 2019 and 2018 no OTTI was recognized on securities available-for-sale. 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, 2019 and December 31, 2018 . 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, 2019 Securities Available-for-Sale U.S. treasury securities 5 $ — $ — $ 13,982 $ 21 $ 13,982 $ 21 U.S. agency securities 51 186 7 82,022 653 82,208 660 CMOs 108 9,896 31 371,269 2,650 381,165 2,681 MBSs 83 21,325 71 250,402 2,744 271,727 2,815 Municipal securities 57 608 8 23,646 98 24,254 106 Corporate debt securities 9 11,032 21 29,134 960 40,166 981 Total 313 $ 43,047 $ 138 $ 770,455 $ 7,126 $ 813,502 $ 7,264 Securities Held-to-Maturity Municipal securities 32 $ 12,884 $ 501 $ 9,521 $ 371 $ 22,405 $ 872 As of December 31, 2018 Securities Available-for-Sale U.S. treasury securities 17 $ 15,894 $ 57 $ 13,886 $ 118 $ 29,780 $ 175 U.S. agency securities 74 34,263 320 93,227 1,287 127,490 1,607 CMOs 234 171,901 1,671 863,747 23,013 1,035,648 24,684 MBSs 118 135,791 1,715 284,273 9,536 420,064 11,251 Municipal securities 423 60,863 558 109,935 2,316 170,798 2,874 Corporate debt securities 16 82,349 3,725 — — 82,349 3,725 Total 882 $ 501,061 $ 8,046 $ 1,365,068 $ 36,270 $ 1,866,129 $ 44,316 Securities Held-to-Maturity Municipal securities 5 $ — $ — $ 9,871 $ 305 $ 9,871 $ 305 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, 2019 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. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2019 | |
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 $ 4,524,401 $ 4,120,293 Agricultural 430,589 430,928 Commercial real estate: Office, retail, and industrial 1,936,577 1,820,917 Multi-family 787,155 764,185 Construction 654,607 649,337 Other commercial real estate 1,447,673 1,361,810 Total commercial real estate 4,826,012 4,596,249 Total corporate loans 9,781,002 9,147,470 Home equity 874,686 851,607 1-4 family mortgages 1,391,814 1,017,181 Installment 472,102 430,525 Total consumer loans 2,738,602 2,299,313 Total loans $ 12,519,604 $ 11,446,783 Deferred loan fees included in total loans $ 7,382 $ 6,715 Overdrawn demand deposits included in total loans 8,875 8,583 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 2018 10-K. Loan Sales The following table presents loan sales for the quarters and six months ended June 30, 2019 and 2018 . Loan Sales (Dollar amounts in thousands) Quarters Ended Six Months Ended 2019 2018 2019 2018 Corporate loan sales Proceeds from sales $ 2,178 $ 3,991 $ 5,376 $ 12,312 Less book value of loans sold 2,132 3,861 5,248 11,984 Net gains on corporate loan sales (1) 46 130 128 328 1-4 family mortgage loan sales Proceeds from sales $ 95,408 $ 65,715 $ 154,191 $ 130,900 Less book value of loans sold 93,473 64,336 150,928 128,094 Net gains on 1-4 family mortgage loan sales (2) 1,935 1,379 3,263 2,806 Total net gains on loan sales $ 1,981 $ 1,509 $ 3,391 $ 3,134 (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. For additional disclosure related to the Company's obligations resulting from the sale of certain 1-4 family mortgage loans, see Note 12 , " Commitments, Guarantees, and Contingent Liabilities ." |
Acquired and Covered Loans
Acquired and Covered Loans | 6 Months Ended |
Jun. 30, 2019 | |
Transfers and Servicing [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 the carrying amount of acquired and covered PCI and non-PCI loans as of June 30, 2019 and December 31, 2018 . Acquired and Covered Loans (1) (Dollar amounts in thousands) As of June 30, 2019 As of December 31, 2018 PCI Non-PCI Total PCI Non-PCI Total Acquired loans $ 168,460 $ 1,565,943 $ 1,734,403 $ 108,049 $ 1,247,492 $ 1,355,541 Covered loans 5,563 4,166 9,729 5,819 4,869 10,688 Total acquired and covered loans $ 174,023 $ 1,570,109 $ 1,744,132 $ 113,868 $ 1,252,361 $ 1,366,229 (1) Included in loans in the Consolidated Statements of Financial Condition. The outstanding balance of PCI loans was $251.8 million and $175.2 million as of June 30, 2019 and December 31, 2018 , respectively. Acquired non-PCI loans that are renewed are no longer classified as acquired loans. These loans totaled $490.0 million and $458.0 million as of June 30, 2019 and December 31, 2018 , respectively. In connection with the FDIC Agreements , the Company recorded an indemnification asset. The carrying value of the FDIC indemnification asset was $1.5 million and $2.1 million as of June 30, 2019 and December 31, 2018 , respectively. 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 2019 2018 2019 2018 Beginning balances $ 39,535 $ 36,543 $ 43,725 $ 32,957 Additions 16,037 — 16,037 — Accretion (3,670 ) (2,922 ) (7,871 ) (6,540 ) Other (1) (1,017 ) 5,387 (1,006 ) 12,591 Ending balance $ 50,885 $ 39,008 $ 50,885 $ 39,008 (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. Total accretion on acquired and covered PCI and non-PCI loans for the quarters and six months ended June 30, 2019 was $10.3 million and $16.7 million , respectively, and $4.4 million and $9.6 million for the same periods in 2018. |
Past Due Loans, Allowance For C
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and December 31, 2018 . 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 (1) 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, 2019 Commercial and industrial $ 4,499,340 $ 15,147 $ 9,914 $ 25,061 $ 4,524,401 $ 19,809 $ 1,469 Agricultural 423,157 5,561 1,871 7,432 430,589 6,712 — Commercial real estate: Office, retail, and industrial 1,917,718 2,323 16,536 18,859 1,936,577 17,875 152 Multi-family 781,811 404 4,940 5,344 787,155 5,322 — Construction 651,343 3,112 152 3,264 654,607 152 — Other commercial real estate 1,438,249 7,840 1,584 9,424 1,447,673 3,982 98 Total commercial real estate 4,789,121 13,679 23,212 36,891 4,826,012 27,331 250 Total corporate loans 9,711,618 34,387 34,997 69,384 9,781,002 53,852 1,719 Home equity 866,924 5,243 2,519 7,762 874,686 5,839 13 1-4 family mortgages 1,385,737 4,397 1,680 6,077 1,391,814 3,786 — Installment 470,907 312 883 1,195 472,102 — 883 Total consumer loans 2,723,568 9,952 5,082 15,034 2,738,602 9,625 896 Total loans $ 12,435,186 $ 44,339 $ 40,079 $ 84,418 $ 12,519,604 $ 63,477 $ 2,615 As of December 31, 2018 Commercial and industrial $ 4,085,164 $ 8,832 $ 26,297 $ 35,129 $ 4,120,293 $ 33,507 $ 422 Agricultural 428,357 940 1,631 2,571 430,928 1,564 101 Commercial real estate: Office, retail, and industrial 1,803,059 8,209 9,649 17,858 1,820,917 6,510 4,081 Multi-family 759,402 1,487 3,296 4,783 764,185 3,107 189 Construction 645,774 3,419 144 3,563 649,337 144 — Other commercial real estate 1,353,442 4,921 3,447 8,368 1,361,810 2,854 2,197 Total commercial real estate 4,561,677 18,036 16,536 34,572 4,596,249 12,615 6,467 Total corporate loans 9,075,198 27,808 44,464 72,272 9,147,470 47,686 6,990 Home equity 843,217 6,285 2,105 8,390 851,607 5,393 104 1-4 family mortgages 1,009,925 4,361 2,895 7,256 1,017,181 3,856 1,147 Installment 428,836 1,648 41 1,689 430,525 — 41 Total consumer loans 2,281,978 12,294 5,041 17,335 2,299,313 9,249 1,292 Total loans $ 11,357,176 $ 40,102 $ 49,505 $ 89,607 $ 11,446,783 $ 56,935 $ 8,282 (1) PCI loans with an accretable yield are considered current. 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, 2019 and 2018 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 Reserve for Unfunded Commitments Total Allowance for Credit Losses Quarter Ended June 30, 2019 Beginning balance $ 64,685 $ 7,679 $ 2,216 $ 2,131 $ 4,930 $ 21,938 $ 1,200 $ 104,779 Charge-offs (6,516 ) (1,605 ) — — (329 ) (2,974 ) — (11,424 ) Recoveries 1,258 151 — 10 45 619 — 2,083 Net charge-offs (5,258 ) (1,454 ) — 10 (284 ) (2,355 ) — (9,341 ) Provision for loan losses and other 6,937 1,270 (57 ) (279 ) 351 3,269 — 11,491 Ending balance $ 66,364 $ 7,495 $ 2,159 $ 1,862 $ 4,997 $ 22,852 $ 1,200 $ 106,929 Quarter Ended June 30, 2018 Beginning balance $ 57,200 $ 10,607 $ 2,592 $ 1,972 $ 5,291 $ 17,192 $ 1,000 $ 95,854 Charge-offs (8,662 ) (305 ) (4 ) — (1 ) (2,337 ) — (11,309 ) Recoveries 753 26 — 8 359 386 — 1,532 Net charge-offs (7,909 ) (279 ) (4 ) 8 358 (1,951 ) — (9,777 ) Provision for loan losses and other 10,752 (1,266 ) (413 ) 144 (1,018 ) 3,415 — 11,614 Ending balance $ 60,043 $ 9,062 $ 2,175 $ 2,124 $ 4,631 $ 18,656 $ 1,000 $ 97,691 Six Months Ended June 30, 2019 Beginning balance $ 63,276 $ 7,900 $ 2,464 $ 2,173 $ 4,934 $ 21,472 $ 1,200 $ 103,419 Charge-offs (12,967 ) (2,233 ) (340 ) (6 ) (539 ) (6,116 ) — (22,201 ) Recoveries 2,559 161 1 16 66 973 — 3,776 Net charge-offs (10,408 ) (2,072 ) (339 ) 10 (473 ) (5,143 ) — (18,425 ) Provision for loan losses and other 13,496 1,667 34 (321 ) 536 6,523 — 21,935 Ending balance $ 66,364 $ 7,495 $ 2,159 $ 1,862 $ 4,997 $ 22,852 $ 1,200 $ 106,929 Six Months Ended June 30, 2018 Beginning balance $ 55,791 $ 10,996 $ 2,534 $ 3,481 $ 6,381 $ 16,546 $ 1,000 $ 96,729 Charge-offs (23,332 ) (766 ) (4 ) — (70 ) (4,222 ) — (28,394 ) Recoveries 1,291 123 — 21 398 728 — 2,561 Net charge-offs (22,041 ) (643 ) (4 ) 21 328 (3,494 ) — (25,833 ) Provision for loan losses and other 26,293 (1,291 ) (355 ) (1,378 ) (2,078 ) 5,604 — 26,795 Ending balance $ 60,043 $ 9,062 $ 2,175 $ 2,124 $ 4,631 $ 18,656 $ 1,000 $ 97,691 The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of June 30, 2019 and December 31, 2018 . 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, 2019 Commercial, industrial, and agricultural $ 23,549 $ 4,878,817 $ 52,624 $ 4,954,990 $ 2,000 $ 64,024 $ 340 $ 66,364 Commercial real estate: Office, retail, and industrial 15,291 1,907,604 13,682 1,936,577 67 6,473 955 7,495 Multi-family 5,161 775,648 6,346 787,155 — 2,064 95 2,159 Construction 123 645,235 9,249 654,607 — 1,777 85 1,862 Other commercial real estate 3,334 1,375,786 68,553 1,447,673 — 4,258 739 4,997 Total commercial real estate 23,909 4,704,273 97,830 4,826,012 67 14,572 1,874 16,513 Total corporate loans 47,458 9,583,090 150,454 9,781,002 2,067 78,596 2,214 82,877 Consumer — 2,715,033 23,569 2,738,602 — 21,756 1,096 22,852 Reserve for unfunded commitments — — — — — 1,200 — 1,200 Total loans $ 47,458 $ 12,298,123 $ 174,023 $ 12,519,604 $ 2,067 $ 101,552 $ 3,310 $ 106,929 As of December 31, 2018 Commercial, industrial, and agricultural $ 32,415 $ 4,514,349 $ 4,457 $ 4,551,221 $ 3,961 $ 58,947 $ 368 $ 63,276 Commercial real estate: Office, retail, and industrial 5,057 1,799,304 16,556 1,820,917 748 5,984 1,168 7,900 Multi-family 3,492 747,030 13,663 764,185 — 2,154 310 2,464 Construction — 644,499 4,838 649,337 — 2,019 154 2,173 Other commercial real estate 1,545 1,305,444 54,821 1,361,810 — 4,180 754 4,934 Total commercial real estate 10,094 4,496,277 89,878 4,596,249 748 14,337 2,386 17,471 Total corporate loans 42,509 9,010,626 94,335 9,147,470 4,709 73,284 2,754 80,747 Consumer — 2,279,780 19,533 2,299,313 — 20,094 1,378 21,472 Reserve for unfunded commitments — — — — — 1,200 — 1,200 Total loans $ 42,509 $ 11,290,406 $ 113,868 $ 11,446,783 $ 4,709 $ 94,578 $ 4,132 $ 103,419 Loans Individually Evaluated for Impairment The following table presents loans individually evaluated for impairment by class of loan as of June 30, 2019 and December 31, 2018 . PCI loans are excluded from this disclosure. Impaired Loans Individually Evaluated by Class (Dollar amounts in thousands) As of June 30, 2019 As of December 31, 2018 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 $ 13,578 $ 3,503 $ 37,779 $ 670 $ 7,550 $ 23,349 $ 49,102 $ 3,960 Agricultural 1,156 5,312 9,565 1,330 1,318 198 3,997 1 Commercial real estate: Office, retail, and industrial 14,335 956 16,274 67 1,861 3,196 6,141 748 Multi-family 5,161 — 5,497 — 3,492 — 3,492 — Construction 123 — 123 — — — — — Other commercial real estate 3,334 — 3,492 — 1,545 — 1,612 — Total commercial real estate 22,953 956 25,386 67 6,898 3,196 11,245 748 Total impaired loans individually evaluated for impairment $ 37,687 $ 9,771 $ 72,730 $ 2,067 $ 15,766 $ 26,743 $ 64,344 $ 4,709 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, 2019 and 2018 . 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, 2019 2018 Average Interest Income Recognized (1) Average Interest Income Recognized (1) Commercial and industrial $ 24,530 $ 10 $ 31,787 $ 14 Agricultural 4,292 11 3,386 25 Commercial real estate: Office, retail, and industrial 15,567 1 9,509 656 Multi-family 4,169 — 2,166 48 Construction 62 — — — Other commercial real estate 2,433 26 2,694 61 Total commercial real estate 22,231 27 14,369 765 Total impaired loans $ 51,053 $ 48 $ 49,542 $ 804 Six Months Ended June 30, 2019 2018 Average Interest (1) Average Interest (1) Commercial and industrial $ 26,653 $ 26 $ 34,097 $ 36 Agricultural 3,366 11 2,257 25 Commercial real estate: Office, retail, and industrial 12,063 4 9,942 768 Multi-family 3,943 — 1,651 55 Construction 41 — — — Other commercial real estate 2,137 42 2,285 113 Total commercial real estate 18,184 46 13,878 936 Total impaired loans $ 48,203 $ 83 $ 50,232 $ 997 (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, as of June 30, 2019 and December 31, 2018 . Corporate Credit Quality Indicators by Class (Dollar amounts in thousands) Pass Special Mention (1)(4) Substandard (2)(4) Non-accrual (3) Total As of June 30, 2019 Commercial and industrial $ 4,326,163 $ 74,221 $ 104,208 $ 19,809 $ 4,524,401 Agricultural 383,404 23,834 16,639 6,712 430,589 Commercial real estate: Office, retail, and industrial 1,833,410 41,134 44,158 17,875 1,936,577 Multi-family 765,375 10,385 6,073 5,322 787,155 Construction 632,922 12,591 8,942 152 654,607 Other commercial real estate 1,375,902 29,009 38,780 3,982 1,447,673 Total commercial real estate 4,607,609 93,119 97,953 27,331 4,826,012 Total corporate loans $ 9,317,176 $ 191,174 $ 218,800 $ 53,852 $ 9,781,002 As of December 31, 2018 Commercial and industrial $ 3,952,066 $ 74,878 $ 59,842 $ 33,507 $ 4,120,293 Agricultural 407,542 10,070 11,752 1,564 430,928 Commercial real estate: Office, retail, and industrial 1,735,426 35,853 43,128 6,510 1,820,917 Multi-family 745,131 9,273 6,674 3,107 764,185 Construction 624,446 16,370 8,377 144 649,337 Other commercial real estate 1,294,128 47,736 17,092 2,854 1,361,810 Total commercial real estate 4,399,131 109,232 75,271 12,615 4,596,249 Total corporate loans $ 8,758,739 $ 194,180 $ 146,865 $ 47,686 $ 9,147,470 (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 $236,000 as of June 30, 2019 and $630,000 as of December 31, 2018 . Consumer Credit Quality Indicators by Class (Dollar amounts in thousands) Performing Non-accrual Total As of June 30, 2019 Home equity $ 868,847 $ 5,839 $ 874,686 1-4 family mortgages 1,388,028 3,786 1,391,814 Installment 472,102 — 472,102 Total consumer loans $ 2,728,977 $ 9,625 $ 2,738,602 As of December 31, 2018 Home equity $ 846,214 $ 5,393 $ 851,607 1-4 family mortgages 1,013,325 3,856 1,017,181 Installment 430,525 — 430,525 Total consumer loans $ 2,290,064 $ 9,249 $ 2,299,313 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, 2019 and December 31, 2018 . 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, 2019 As of December 31, 2018 Accruing Non-accrual (1) Total Accruing Non-accrual (1) Total Commercial and industrial $ 236 $ 6,928 $ 7,164 $ 246 $ 5,994 $ 6,240 Agricultural — — — — — — Commercial real estate: Office, retail, and industrial — 383 383 — — — Multi-family 167 — 167 557 — 557 Construction — — — — — — Other commercial real estate 176 — 176 181 — 181 Total commercial real estate 343 383 726 738 — 738 Total corporate loans 579 7,311 7,890 984 5,994 6,978 Home equity 109 257 366 113 327 440 1-4 family mortgages 753 273 1,026 769 291 1,060 Installment — — — — — — Total consumer loans 862 530 1,392 882 618 1,500 Total loans $ 1,441 $ 7,841 $ 9,282 $ 1,866 $ 6,612 $ 8,478 (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. As of June 30, 2019 , there were $670,000 of specific reserves related to TDR s. There were no specific reserves related to TDRs as of December 31, 2018 . There were no material restructurings during the quarters and six months ended June 30, 2019 and 2018 . 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, 2019 and 2018 . A rollforward of the carrying value of TDR s for the quarters and six months ended June 30, 2019 and 2018 is presented in the following table. TDR Rollforward (Dollar amounts in thousands) Quarters Ended Six Months Ended 2019 2018 2019 2018 Accruing Beginning balance $ 1,844 $ 1,778 $ 1,866 $ 1,796 Additions — — 12 — Net payments (20 ) (18 ) (54 ) (36 ) Net transfers to non-accrual (383 ) — (383 ) — Ending balance 1,441 1,760 1,441 1,760 Non-accrual Beginning balance 9,375 20,466 6,612 24,533 Additions — — — 355 Net advances (payments) (1,447 ) (9,865 ) 1,474 (12,978 ) Charge-offs (470 ) (2,363 ) (628 ) (3,672 ) Net transfers from accruing 383 — 383 — Ending balance 7,841 8,238 7,841 8,238 Total TDRs $ 9,282 $ 9,998 $ 9,282 $ 9,998 There were $1.9 million and $3.8 million of commitments to lend additional funds to borrowers with TDR s as of June 30, 2019 and December 31, 2018 , respectively. |
Lease Obligations Lease Obligat
Lease Obligations Lease Obligations | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease Obligations | LEASE OBLIGATIONS The Company has the right to utilize certain premises under non-cancelable operating leases with varying maturity dates through the year ending December 31, 2033 . As of June 30, 2019 , the weighted-average remaining lease term on these leases was 11.02 years. Various leases contain renewal or termination options controlled by the Company or options to purchase the leased property during or at the expiration of the lease period at specific prices. Some leases contain escalation clauses calling for rentals to be adjusted for increased real estate taxes and other operating expenses or proportionately adjusted for increases in consumer or other price indices. Variable payments for real estate taxes and other operating expenses are considered to be non-lease components and are excluded from the determination of the lease liability. In addition, the Company rents or subleases certain real estate to third-parties. The following summary reflects the future minimum payments by year required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year and a reconciliation of those payments to the Company's lease liability as of June 30, 2019 . Lease Liability (Dollar amounts in thousands) As of Year Ending December 31, 2019 $ 8,124 2020 17,409 2021 17,277 2022 17,284 2023 17,419 2024 and thereafter 115,479 Total minimum lease payments 192,992 Discount (1) (32,973 ) Lease liability (2) $ 160,019 (1) Represents the net present value adjustment related to minimum lease payments. (2) Included in accrued interest payable and other liabilities in the Consolidated Statements of Financial Condition. The discount rate for the Company's operating leases is the rate implicit in the lease and, if that rate cannot be readily determined, the Company's incremental borrowing rate. The weighted-average discount rate on the Company's operating leases was 3.34% as of June 30, 2019 . As of June 30, 2019 , right-of-use assets of $139.9 million associated with lease liabilities were included in accrued interest receivable and other assets in the Consolidated Statements of Financial Condition. The following table presents net operating lease expense for the quarters and six months ended June 30, 2019 and 2018 . Net Operating Lease Expense (Dollar amounts in thousands) Quarters Ended Six Months Ended 2019 2018 2019 2018 Lease expense charged to operations $ 4,426 $ 4,946 $ 8,486 $ 9,943 Accretion of operating lease intangible (1) — (210 ) — (505 ) Accretion of deferred gain on sale-leaseback transaction (1) — (1,463 ) — (2,926 ) Rental income from premises leased to others (1) (165 ) (108 ) (322 ) (262 ) Net operating lease expense $ 4,261 $ 3,165 $ 8,164 $ 6,250 (1) Included as reductions to net occupancy and equipment expense in the Condensed Consolidated Statements of Income. During 2016, the Bank completed a sale-leaseback transaction, whereby the Bank sold to a third-party 55 branches and concurrently entered into triple net lease agreements with certain affiliates of the third-party for each of the branches sold. The sale-leaseback transaction resulted in a pre-tax gain of $88.0 million , net of transaction related expenses, of which $5.5 million was immediately recognized in earnings. Remaining deferred pre-tax gains were $65.5 million as of December 31, 2018. Upon adoption of new lease guidance on January 1, 2019, the remaining after tax gain of $47.3 million was recognized as a cumulative-effect adjustment to equity in the Consolidated Statements of Financial Condition. For additional detail regarding the new lease guidance see Note 2, "Recent Accounting Pronouncements." |
Material Transactions Affecting
Material Transactions Affecting Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Material Transactions Affecting Stockholders' Equity | MATERIAL TRANSACTIONS AFFECTING STOCKHOLDERS' EQUITY On March 19, 2019 , the Company announced a new stock repurchase program that authorizes the Company to repurchase up to $180 million of its common stock. Stock repurchases under this program may be made from time to time on the open market or in privately negotiated transactions, at the discretion of the Company. The program will be in effect for a one -year period, with repurchases made at prices to be determined by the Company. The stock repurchase program does not obligate the Company to repurchase a specific dollar amount or number of shares, and the program may be extended, modified, or discontinued at any time. The Company repurchased 1,041,700 shares of its common stock at a total cost of $21.2 million during the quarter and six months ended June 30, 2019 . |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE The 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 2019 2018 2019 2018 Net income $ 47,014 $ 29,600 $ 93,072 $ 63,110 Net income applicable to non-vested restricted shares (389 ) (240 ) (792 ) (551 ) Net income applicable to common shares $ 46,625 $ 29,360 $ 92,280 $ 62,559 Weighted-average common shares outstanding: Weighted-average common shares outstanding (basic) 108,467 102,159 107,126 102,041 Dilutive effect of common stock equivalents — — — 8 Weighted-average diluted common shares outstanding 108,467 102,159 107,126 102,049 Basic EPS $ 0.43 $ 0.29 $ 0.86 $ 0.61 Diluted EPS $ 0.43 $ 0.29 $ 0.86 $ 0.61 Anti-dilutive shares not included in the computation of diluted EPS (1) — — — 54 (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. The final outstanding stock options were exercised during the first quarter of 2018. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2019 | |
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." Cash Flow Hedges As of June 30, 2019 , the Company hedged $1.0 billion 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 $1.0 billion 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 $685.0 million began on various dates between August of 2015 and April of 2019 and mature between August of 2019 and December of 2023. The remaining forward starting interest rate swaps totaling $330.0 million begin at various dates between December of 2019 and February of 2021 and mature between December of 2021 and February of 2023. The weighted-average fixed interest rate to be paid on these interest rate swaps that have not yet begun was 2.56% as of June 30, 2019 . These derivative contracts are designated as cash flow hedges. Cash Flow Hedges (Dollar amounts in thousands) As of June 30, 2019 December 31, 2018 Gross notional amount outstanding $ 2,030,000 $ 2,280,000 Derivative asset fair value in other assets (1) 2,008 6,889 Derivative liability fair value in other liabilities (1) (1,819 ) (11,328 ) Weighted-average interest rate received 2.13 % 2.12 % Weighted-average interest rate paid 2.22 % 2.20 % Weighted-average maturity (in years) 1.27 1.53 (1) Certain cash flow hedges are transacted through a clearinghouse ("centrally cleared") and their change in fair value is settled by the counterparties to the transaction, which results in no fair value. Changes in the fair value of cash flow hedges are recorded in accumulated other comprehensive loss on an after-tax basis and are subsequently reclassified to interest income or expense in the period that the forecasted hedged item impacts earnings. As of June 30, 2019 , the Company estimates that $698,000 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 through capital market products with its commercial customers and simultaneously enters into an offsetting interest rate derivative transaction 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, 2019 and December 31, 2018 , the Company's credit exposure was fully secured by the underlying collateral on customer loans and mitigated through netting arrangements with third-parties; therefore, no CVA was recorded. Capital market products income related to commercial customer derivative instruments totaled $2.2 million and $3.4 million for the quarter and six months ended June 30, 2019 , respectively. There were $2.8 million and $4.4 million of capital market products income for the quarter and six months ended June 30, 2018 , respectively. Other Derivative Instruments (Dollar amounts in thousands) As of June 30, 2019 December 31, 2018 Gross notional amount outstanding $ 3,289,412 $ 3,085,226 Derivative asset fair value in other assets (1) 57,897 25,168 Derivative liability fair value in other liabilities (1) (21,372 ) (17,533 ) Fair value of derivative (2) 21,494 18,013 (1) Certain other derivative instruments are centrally cleared and their change in fair value is settled by the counterparties to the transaction, which results in no fair value. (2) 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, 2019 and December 31, 2018 . The Company does not enter into derivative transactions for purely speculative purposes. The following table presents the impact of derivative instruments on comprehensive income and the reclassification of gains (losses) from accumulated other comprehensive loss to net interest income for the quarters and six months ended June 30, 2019 and 2018 . Cash Flow Hedge Accounting on AOCI (Dollar amounts in thousands) Quarters Ended Six Months Ended 2019 2018 2019 2018 Gains (losses) recognized in other comprehensive income Interest rate swaps in interest income $ 5,944 $ 3,577 $ 9,297 $ 10,573 Interest rate swaps in interest expense (7,816 ) (2,860 ) (11,996 ) (10,043 ) Reclassification of gains (losses) included in net income Interest rate swaps in interest income $ 1,355 $ 376 $ 2,748 $ 647 Interest rate swaps in interest expense (1,924 ) (503 ) (3,948 ) (1,109 ) The following table presents the impact of derivative instruments on net interest income for the quarters and six months ended June 30, 2019 and 2018 . Hedge Income (Dollar amounts in thousands) Quarters Ended Six Months Ended 2019 2018 2019 2018 Cash Flow Hedges Interest rate swaps in interest income 1,355 376 2,748 647 Interest rate swaps in interest expense (1,924 ) (503 ) (3,948 ) (1,109 ) Total cash flow hedges (569 ) (127 ) (1,200 ) (462 ) 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, 2019 and December 31, 2018 , 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, 2019 and December 31, 2018 . Fair Value of Offsetting Derivatives (Dollar amounts in thousands) As of June 30, 2019 As of December 31, 2018 Assets Liabilities Assets Liabilities Gross amounts recognized $ 59,905 $ 23,191 $ 32,057 $ 28,861 Less: amounts offset in the Consolidated Statements of Financial Condition — — — — Net amount presented in the Consolidated Statements of Financial Condition (1) 59,905 23,191 32,057 28,861 Gross amounts not offset in the Consolidated Statements of Financial Condition: Offsetting derivative positions (4,088 ) (4,088 ) (11,678 ) (11,678 ) Cash collateral pledged — (12,618 ) (9,060 ) (3,506 ) Net credit exposure $ 55,817 $ 6,485 $ 11,319 $ 13,677 (1) Included in other assets or other liabilities in the Consolidated Statements of Financial Condition. As of June 30, 2019 and December 31, 2018 , 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, 2019 and December 31, 2018 the Company was in compliance with these provisions. |
Commitments, Guarantees, and Co
Commitments, Guarantees, and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 December 31, 2018 Commitments to extend credit: Commercial, industrial, and agricultural $ 1,699,246 $ 1,729,286 Commercial real estate 283,183 296,882 Home equity 583,198 570,553 Other commitments (1) 256,356 244,917 Total commitments to extend credit $ 2,821,983 $ 2,841,638 Letters of credit $ 114,304 $ 112,728 (1) Other commitments includes installment and overdraft protection program commitments. 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 for the full contractual amount. 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 early payment default 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, 2019 and 2018 . Legal Proceedings In the ordinary course of business, there were certain legal proceedings pending against the Company and its subsidiaries at June 30, 2019 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2019 | |
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: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • 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. • 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 required to be measured at fair value on a recurring basis 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, 2019 As of December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Equity securities $ 22,613 $ 13,040 $ — $ 19,658 $ 11,148 $ — Securities available-for-sale U.S. treasury securities 43,087 — — 37,767 — — U.S. agency securities — 187,238 — — 142,563 — CMOs — 1,549,728 — — 1,315,209 — MBSs — 670,407 — — 466,934 — Municipal securities — 238,342 — — 227,187 — Corporate debt securities — 104,514 — — 82,349 — Total securities available-for-sale 43,087 2,750,229 — 37,767 2,234,242 — Mortgage servicing rights ("MSRs") (1) — — 5,831 — — 6,730 Derivative assets (1) — 59,905 — — 32,057 — Liabilities Derivative liabilities (2) $ — $ 23,191 $ — $ — $ 28,861 $ — (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. Equity Securities The Company's equity securities consist primarily of community development investments and certain diversified investment securities held in a grantor trust for participants in the Company's nonqualified deferred compensation plan that are invested in money market and mutual funds. The fair value of certain community development investments is based on quoted prices in active markets or market prices for similar securities obtained from external pricing services or dealer market participants and is classified in level 2 of the fair value hierarchy. As of June 30, 2019 , the fair value of certain community development investments totaling $5.0 million was based on the net asset value per share ("NAV") practical expedient and can be redeemed at any month end with 30 days notice. Since these investments are measured at fair value using the NAV practical expedient, they are not classified in the fair value hierarchy. The fair value of the 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 in order to determine whether the valuations represent an exit price in the Company's principal markets. MSR s The Company services loans for others totaling $641.6 million and $627.3 million as of June 30, 2019 and December 31, 2018 , respectively. These loans are owned by third-parties and are not included in the Consolidated Statements of Financial Condition. 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, 2019 and December 31, 2018 . Significant Unobservable Inputs Used in the Valuation of MSR s As of June 30, 2019 December 31, 2018 Prepayment speed 6.8 % - 10.5% 6.5 % - 13.5% Maturity (months) 18 - 89 20 - 104 Discount rate 9.5 % - 12.0% 9.5 % - 12.0% 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, 2019 and 2018 is presented in the following table. Carrying Value of MSR s (Dollar amounts in thousands) Quarters Ended Six Months Ended 2019 2018 2019 2018 Beginning balance $ 6,228 $ 6,468 $ 6,730 $ 5,894 New MSRs 204 393 457 569 Total gains (losses) included in earnings (1) : Changes in valuation inputs and assumptions (389 ) 2 (989 ) 562 Other changes in fair value (2) (212 ) (192 ) (367 ) (354 ) Ending balance (3) $ 5,831 $ 6,671 $ 5,831 $ 6,671 Contractual servicing fees earned (1) $ 390 $ 369 $ 771 $ 747 (1) Included in mortgage banking income in the Condensed Consolidated Statements of Income and related to assets held as of June 30, 2019 and 2018 . (2) Primarily represents changes in expected future cash flows due to payoffs and paydowns. (3) Included in other assets in the Consolidated Statements of Financial Condition. 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, 2019 As of December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Collateral-dependent impaired loans (1) $ — $ — $ 21,089 $ — $ — $ 24,565 OREO (2) — — 1,820 — — 6,012 Loans held-for-sale (3) — — 16,948 — — 3,478 Assets held-for-sale (4) — — 3,655 — — 3,722 (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, 2019 and December 31, 2018 , 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. Assets Held-for-Sale Assets held-for-sale as of June 30, 2019 and December 31, 2018 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, 2019 December 31, 2018 Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value Assets Cash and due from banks 1 $ 199,684 $ 199,684 $ 211,189 $ 211,189 Interest-bearing deposits in other banks 2 126,966 126,966 78,069 78,069 Securities held-to-maturity 2 23,277 22,405 10,176 9,871 FHLB and FRB stock 2 109,466 109,466 80,302 80,302 Loans 3 12,415,371 12,273,439 11,346,668 11,052,040 Investment in BOLI 3 297,118 297,118 296,733 296,733 Accrued interest receivable 3 59,765 59,765 54,847 54,847 Liabilities Deposits 2 $ 13,188,588 $ 13,185,124 $ 12,084,112 $ 12,064,604 Borrowed funds 2 1,407,378 1,407,378 906,079 906,079 Senior and subordinated debt 2 233,538 272,085 203,808 211,207 Accrued interest payable 2 13,091 13,091 10,005 10,005 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. Loans include the FDIC indemnification asset and net loans, which consists of loans held-for-investment, acquired loans, and the allowance for loan losses. As of both June 30, 2019 and December 31, 2018 , the Company estimated the fair value of lending commitments outstanding to be immaterial. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation – 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, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . 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 2018 Annual Report on Form 10-K (" 2018 10-K"). The Company |
Reclassification | Certain reclassifications were made to prior year amounts to conform to the current year presentation. |
Use of Estimates | Use of Estimates – 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 – 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 – 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 – 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 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 – Covered loans consists of loans acquired by the Company in Federal Deposit Insurance Corporation (" FDIC ")-assisted transactions that 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. Certain loans that were previously classified as covered loans are no longer covered under the FDIC Agreements, and are included in acquired loans. 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 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 – The Company 's accrual of interest on loans is generally 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 – 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 (“TDRs”) | Troubled Debt Restructurings ( " TDR s" ) – 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 – 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/Loan Losses and Reserve for Unfunded Commitments | Allowance for Credit Losses – 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 – 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 collateral 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 eight 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: • 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. • Changes in credit policies and procedures, such as underwriting standards and collection, charge-off, and recovery practices. • Changes in the experience, ability, and depth of credit management and other relevant staff. • Changes in the quality of the Company 's loan review system and Board of Directors oversight. • The effect of any concentration of credit and changes in the level of concentrations, such as loan type or risk rating. • Changes in the value of the underlying collateral for collateral-dependent loans. • Changes in the national and local economy that affect the collectability of various segments of the portfolio. • 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 – 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. |
Lease Obligations | Lease Obligations – The Company leases certain premises under non-cancelable operating leases in the normal course of business operations. These lease obligations result in the recognition of right-of-use assets and associated lease liabilities. The amount of right-of-use assets and associated lease liabilities recorded is based on the present value of future minimum lease payments. Right-of-use assets are amortized on a straight-line basis over the estimated useful lives of the related premises, and interest associated with the net present value of future minimum lease payments is included in net occupancy and equipment expense in the consolidated financial statements. |
Derivative Financial Instruments | Derivative Financial Instruments – 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, 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 in the same income statement line item as the earnings effect of the hedged item. 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. |
Recent Accounting Pronouncements | Adopted Accounting Pronouncements Leases: In February of 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02 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. The Company adopted this guidance on January 1, 2019, which resulted in the recognition of $143.6 million of right-of-use assets and additional associated lease liabilities for its operating leases. The amount of right-of-use assets and associated lease liabilities recorded upon adoption was based on the present value of future minimum lease payments, the amount of which depended on the population of leases in effect at the date of adoption. This guidance also applies to the Company's net investment in direct financing leases, which is included in loans, but did not have a material impact. The Company has elected certain practical expedients contained in this guidance, which, among other provisions, allowed the Company to not reassess the historical lease classification, initial direct costs, or existing contracts for the inclusion of leases. The Company has also elected the practical expedients for the use of hindsight in determining the lease term and the right-of-use assets, as well as an election not to apply the recognition requirements of the guidance to leases with terms of 12 months or less. The application of hindsight practical expedient resulted in the determination that most renewal options would not be reasonably certain in determining the expected lease term. First Midwest Bank (the "Bank") entered into a sale-leaseback transaction in 2016 that resulted in a deferred gain. Upon adoption of this guidance, the remaining deferred gain of $47.3 million after tax was recognized immediately as a cumulative-effect adjustment to equity. For additional discussion of the sale-leaseback transaction, see Note 8 , " Lease Obligations ." The adoption of this guidance was applied retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment and did not materially impact the Company 's results of operations or liquidity but did result in a material increase in assets, liabilities, and equity. Premium Amortization on Purchased Callable Debt Securities: In March of 2017, the FASB issued ASU 2017-08 that shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. This guidance is effective for annual and interim periods beginning after December 15, 2018. The adoption of this guidance on January 1, 2019 did not materially impact the Company's financial condition, results of operations, or liquidity. Improvements to Nonemployee Share-based Payment Accounting: In June of 2018, the FASB issued ASU 2018-07 that aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees. This guidance is effective for annual and interim periods beginning after December 15, 2018. The adoption of this guidance on January 1, 2019 did not materially impact the Company's financial condition, results of operations, or liquidity. Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract: In August of 2018, the FASB issued ASU 2018-15 to reduce diversity in practice by clarifying when implementation costs are required to be capitalized in a cloud computing arrangement that is a service contract. This guidance is effective for annual and interim periods beginning after December 15, 2019. The early adoption of this guidance on January 1, 2019 did not materially impact the Company's financial condition, results of operations, or liquidity. Derivatives and Hedging, Inclusion of the Secured Overnight Financing Rate ("SOFR") Overnight Index Swap Rate as a Benchmark Interest Rate for Hedge Accounting Purposes: In October of 2018, the FASB issued ASU 2018-16 adding the overnight index swap rate based on the SOFR to the list of United States benchmark interest rates eligible for hedge accounting purposes. This guidance is effective for annual and interim periods beginning after December 15, 2018. The adoption of this guidance on January 1, 2019 did not materially impact the Company's financial condition, results of operations, or liquidity. Accounting Pronouncements Pending Adoption Measurement of Credit Losses on Financial Instruments: In June of 2016, the FASB issued ASU 2016-13 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. The Company will adopt this guidance on January 1, 2020. Management is continuing its implementation efforts, which are led by a cross-functional working group. Management is in the process of determining the impact on the Company's financial condition, results of operations, liquidity, and regulatory capital ratios. The extent of the impact will depend on the composition of the loan portfolio, as well as the economic conditions and forecasts as of the adoption date. Accounting for Goodwill Impairment: In January of 2017, the FASB issued ASU 2017-04 that simplifies the accounting for goodwill impairment for all entities. The new guidance eliminates the requirement to calculate the implied fair value of goodwill using the second step of the quantitative two-step goodwill impairment model prescribed under current accounting guidance. Under the new guidance, if a reporting unit's carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. This guidance is effective for annual and interim goodwill impairment testing dates beginning after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. Management does not expect the adoption of this guidance will materially impact the Company's financial condition, results of operations, or liquidity. Changes to the Disclosure Requirements for Fair Value Measurement: In August of 2018, the FASB issued ASU 2018-13 that eliminates, modifies, and adds to certain fair value measurement disclosure requirements associated with the three-tiered fair value hierarchy. This guidance is effective for annual and interim periods beginning after December 15, 2019. 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. Changes to the Disclosure Requirements for Defined Benefit Plans: In August of 2018, the FASB issued ASU 2018-14 that makes minor changes and clarifications to the disclosure requirements for entities that sponsor defined benefit plans. This guidance is effective for annual and interim periods beginning after December 15, 2020. 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. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Acquisition Activity | Acquisition Activity (Dollar amounts in thousands, except share and per share data) Bridgeview Northern States May 9, 2019 October 12, 2018 Assets Cash and due from banks and interest-bearing deposits in other banks $ 35,097 $ 160,145 Equity securities 6,966 3,915 Securities available-for-sale 263,695 47,149 Securities held-to-maturity 13,426 — FHLB and FRB stock 1,481 554 Loans 709,889 284,924 OREO 6,237 2,549 Investment in BOLI — 11,104 Goodwill 57,377 30,123 Other intangible assets 15,603 12,230 Premises, furniture, and equipment 18,145 5,964 Accrued interest receivable and other assets 33,724 20,015 Total assets $ 1,161,640 $ 578,672 Liabilities Noninterest-bearing deposits $ 179,267 $ 346,714 Interest-bearing deposits 807,487 116,446 Total deposits 986,754 463,160 Borrowed funds 1,746 18,218 Senior and subordinated debt 29,360 8,038 Accrued interest payable and other liabilities 8,428 5,953 Total liabilities 1,026,288 495,369 Consideration Paid Common stock (2019 – 4,728,541, shares issued at $28.61 per share, 2018 – 3,310,912, shares issued at $25.16 per share), net of issuance costs 98,212 83,303 Cash paid 37,140 — Total consideration paid 135,352 83,303 $ 1,161,640 $ 578,672 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available-for-Sale | 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, 2019 As of December 31, 2018 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Securities Available-for-Sale U.S. treasury securities $ 42,946 $ 162 $ (21 ) $ 43,087 $ 37,925 $ 17 $ (175 ) $ 37,767 U.S. agency securities 187,085 813 (660 ) 187,238 144,125 45 (1,607 ) 142,563 Collateralized mortgage obligations ("CMOs") 1,533,298 19,111 (2,681 ) 1,549,728 1,336,531 3,362 (24,684 ) 1,315,209 Other mortgage-backed securities ("MBSs") 666,454 6,768 (2,815 ) 670,407 477,665 520 (11,251 ) 466,934 Municipal securities 234,028 4,420 (106 ) 238,342 229,600 461 (2,874 ) 227,187 Corporate debt securities 104,427 1,068 (981 ) 104,514 86,074 — (3,725 ) 82,349 Total securities available-for-sale $ 2,768,238 $ 32,342 $ (7,264 ) $ 2,793,316 $ 2,311,920 $ 4,405 $ (44,316 ) $ 2,272,009 Securities Held-to-Maturity Municipal securities $ 23,277 $ — $ (872 ) $ 22,405 $ 10,176 $ — $ (305 ) $ 9,871 Equity Securities $ 40,690 $ 30,806 |
Securities Held-to-Maturity | 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, 2019 As of December 31, 2018 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Securities Available-for-Sale U.S. treasury securities $ 42,946 $ 162 $ (21 ) $ 43,087 $ 37,925 $ 17 $ (175 ) $ 37,767 U.S. agency securities 187,085 813 (660 ) 187,238 144,125 45 (1,607 ) 142,563 Collateralized mortgage obligations ("CMOs") 1,533,298 19,111 (2,681 ) 1,549,728 1,336,531 3,362 (24,684 ) 1,315,209 Other mortgage-backed securities ("MBSs") 666,454 6,768 (2,815 ) 670,407 477,665 520 (11,251 ) 466,934 Municipal securities 234,028 4,420 (106 ) 238,342 229,600 461 (2,874 ) 227,187 Corporate debt securities 104,427 1,068 (981 ) 104,514 86,074 — (3,725 ) 82,349 Total securities available-for-sale $ 2,768,238 $ 32,342 $ (7,264 ) $ 2,793,316 $ 2,311,920 $ 4,405 $ (44,316 ) $ 2,272,009 Securities Held-to-Maturity Municipal securities $ 23,277 $ — $ (872 ) $ 22,405 $ 10,176 $ — $ (305 ) $ 9,871 Equity Securities $ 40,690 $ 30,806 |
Equity 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, 2019 As of December 31, 2018 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Securities Available-for-Sale U.S. treasury securities $ 42,946 $ 162 $ (21 ) $ 43,087 $ 37,925 $ 17 $ (175 ) $ 37,767 U.S. agency securities 187,085 813 (660 ) 187,238 144,125 45 (1,607 ) 142,563 Collateralized mortgage obligations ("CMOs") 1,533,298 19,111 (2,681 ) 1,549,728 1,336,531 3,362 (24,684 ) 1,315,209 Other mortgage-backed securities ("MBSs") 666,454 6,768 (2,815 ) 670,407 477,665 520 (11,251 ) 466,934 Municipal securities 234,028 4,420 (106 ) 238,342 229,600 461 (2,874 ) 227,187 Corporate debt securities 104,427 1,068 (981 ) 104,514 86,074 — (3,725 ) 82,349 Total securities available-for-sale $ 2,768,238 $ 32,342 $ (7,264 ) $ 2,793,316 $ 2,311,920 $ 4,405 $ (44,316 ) $ 2,272,009 Securities Held-to-Maturity Municipal securities $ 23,277 $ — $ (872 ) $ 22,405 $ 10,176 $ — $ (305 ) $ 9,871 Equity Securities $ 40,690 $ 30,806 |
Remaining Contractual Maturity of Securities | Remaining Contractual Maturity of Securities (Dollar amounts in thousands) As of June 30, 2019 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 133,657 $ 134,761 $ 8,736 $ 8,409 After one year to five years 167,113 168,493 5,982 5,758 After five years to ten years 267,707 269,918 5,531 5,324 After ten years 9 9 3,028 2,914 Securities that do not have a single contractual maturity date 2,199,752 2,220,135 — — Total $ 2,768,238 $ 2,793,316 $ 23,277 $ 22,405 |
Securities in an Unrealized Loss Position | 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, 2019 and December 31, 2018 . 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, 2019 Securities Available-for-Sale U.S. treasury securities 5 $ — $ — $ 13,982 $ 21 $ 13,982 $ 21 U.S. agency securities 51 186 7 82,022 653 82,208 660 CMOs 108 9,896 31 371,269 2,650 381,165 2,681 MBSs 83 21,325 71 250,402 2,744 271,727 2,815 Municipal securities 57 608 8 23,646 98 24,254 106 Corporate debt securities 9 11,032 21 29,134 960 40,166 981 Total 313 $ 43,047 $ 138 $ 770,455 $ 7,126 $ 813,502 $ 7,264 Securities Held-to-Maturity Municipal securities 32 $ 12,884 $ 501 $ 9,521 $ 371 $ 22,405 $ 872 As of December 31, 2018 Securities Available-for-Sale U.S. treasury securities 17 $ 15,894 $ 57 $ 13,886 $ 118 $ 29,780 $ 175 U.S. agency securities 74 34,263 320 93,227 1,287 127,490 1,607 CMOs 234 171,901 1,671 863,747 23,013 1,035,648 24,684 MBSs 118 135,791 1,715 284,273 9,536 420,064 11,251 Municipal securities 423 60,863 558 109,935 2,316 170,798 2,874 Corporate debt securities 16 82,349 3,725 — — 82,349 3,725 Total 882 $ 501,061 $ 8,046 $ 1,365,068 $ 36,270 $ 1,866,129 $ 44,316 Securities Held-to-Maturity Municipal securities 5 $ — $ — $ 9,871 $ 305 $ 9,871 $ 305 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 $ 4,524,401 $ 4,120,293 Agricultural 430,589 430,928 Commercial real estate: Office, retail, and industrial 1,936,577 1,820,917 Multi-family 787,155 764,185 Construction 654,607 649,337 Other commercial real estate 1,447,673 1,361,810 Total commercial real estate 4,826,012 4,596,249 Total corporate loans 9,781,002 9,147,470 Home equity 874,686 851,607 1-4 family mortgages 1,391,814 1,017,181 Installment 472,102 430,525 Total consumer loans 2,738,602 2,299,313 Total loans $ 12,519,604 $ 11,446,783 Deferred loan fees included in total loans $ 7,382 $ 6,715 Overdrawn demand deposits included in total loans 8,875 8,583 |
Schedule Of Loans Sold | The following table presents loan sales for the quarters and six months ended June 30, 2019 and 2018 . Loan Sales (Dollar amounts in thousands) Quarters Ended Six Months Ended 2019 2018 2019 2018 Corporate loan sales Proceeds from sales $ 2,178 $ 3,991 $ 5,376 $ 12,312 Less book value of loans sold 2,132 3,861 5,248 11,984 Net gains on corporate loan sales (1) 46 130 128 328 1-4 family mortgage loan sales Proceeds from sales $ 95,408 $ 65,715 $ 154,191 $ 130,900 Less book value of loans sold 93,473 64,336 150,928 128,094 Net gains on 1-4 family mortgage loan sales (2) 1,935 1,379 3,263 2,806 Total net gains on loan sales $ 1,981 $ 1,509 $ 3,391 $ 3,134 (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, 2019 | |
Transfers and Servicing [Abstract] | |
Acquired Loans | The following table presents the carrying amount of acquired and covered PCI and non-PCI loans as of June 30, 2019 and December 31, 2018 . Acquired and Covered Loans (1) (Dollar amounts in thousands) As of June 30, 2019 As of December 31, 2018 PCI Non-PCI Total PCI Non-PCI Total Acquired loans $ 168,460 $ 1,565,943 $ 1,734,403 $ 108,049 $ 1,247,492 $ 1,355,541 Covered loans 5,563 4,166 9,729 5,819 4,869 10,688 Total acquired and covered loans $ 174,023 $ 1,570,109 $ 1,744,132 $ 113,868 $ 1,252,361 $ 1,366,229 (1) Included in loans in the Consolidated Statements of Financial Condition. |
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 2019 2018 2019 2018 Beginning balances $ 39,535 $ 36,543 $ 43,725 $ 32,957 Additions 16,037 — 16,037 — Accretion (3,670 ) (2,922 ) (7,871 ) (6,540 ) Other (1) (1,017 ) 5,387 (1,006 ) 12,591 Ending balance $ 50,885 $ 39,008 $ 50,885 $ 39,008 (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_2
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and December 31, 2018 . 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 (1) 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, 2019 Commercial and industrial $ 4,499,340 $ 15,147 $ 9,914 $ 25,061 $ 4,524,401 $ 19,809 $ 1,469 Agricultural 423,157 5,561 1,871 7,432 430,589 6,712 — Commercial real estate: Office, retail, and industrial 1,917,718 2,323 16,536 18,859 1,936,577 17,875 152 Multi-family 781,811 404 4,940 5,344 787,155 5,322 — Construction 651,343 3,112 152 3,264 654,607 152 — Other commercial real estate 1,438,249 7,840 1,584 9,424 1,447,673 3,982 98 Total commercial real estate 4,789,121 13,679 23,212 36,891 4,826,012 27,331 250 Total corporate loans 9,711,618 34,387 34,997 69,384 9,781,002 53,852 1,719 Home equity 866,924 5,243 2,519 7,762 874,686 5,839 13 1-4 family mortgages 1,385,737 4,397 1,680 6,077 1,391,814 3,786 — Installment 470,907 312 883 1,195 472,102 — 883 Total consumer loans 2,723,568 9,952 5,082 15,034 2,738,602 9,625 896 Total loans $ 12,435,186 $ 44,339 $ 40,079 $ 84,418 $ 12,519,604 $ 63,477 $ 2,615 As of December 31, 2018 Commercial and industrial $ 4,085,164 $ 8,832 $ 26,297 $ 35,129 $ 4,120,293 $ 33,507 $ 422 Agricultural 428,357 940 1,631 2,571 430,928 1,564 101 Commercial real estate: Office, retail, and industrial 1,803,059 8,209 9,649 17,858 1,820,917 6,510 4,081 Multi-family 759,402 1,487 3,296 4,783 764,185 3,107 189 Construction 645,774 3,419 144 3,563 649,337 144 — Other commercial real estate 1,353,442 4,921 3,447 8,368 1,361,810 2,854 2,197 Total commercial real estate 4,561,677 18,036 16,536 34,572 4,596,249 12,615 6,467 Total corporate loans 9,075,198 27,808 44,464 72,272 9,147,470 47,686 6,990 Home equity 843,217 6,285 2,105 8,390 851,607 5,393 104 1-4 family mortgages 1,009,925 4,361 2,895 7,256 1,017,181 3,856 1,147 Installment 428,836 1,648 41 1,689 430,525 — 41 Total consumer loans 2,281,978 12,294 5,041 17,335 2,299,313 9,249 1,292 Total loans $ 11,357,176 $ 40,102 $ 49,505 $ 89,607 $ 11,446,783 $ 56,935 $ 8,282 (1) PCI loans with an accretable yield are considered current. |
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, 2019 and 2018 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 Reserve for Unfunded Commitments Total Allowance for Credit Losses Quarter Ended June 30, 2019 Beginning balance $ 64,685 $ 7,679 $ 2,216 $ 2,131 $ 4,930 $ 21,938 $ 1,200 $ 104,779 Charge-offs (6,516 ) (1,605 ) — — (329 ) (2,974 ) — (11,424 ) Recoveries 1,258 151 — 10 45 619 — 2,083 Net charge-offs (5,258 ) (1,454 ) — 10 (284 ) (2,355 ) — (9,341 ) Provision for loan losses and other 6,937 1,270 (57 ) (279 ) 351 3,269 — 11,491 Ending balance $ 66,364 $ 7,495 $ 2,159 $ 1,862 $ 4,997 $ 22,852 $ 1,200 $ 106,929 Quarter Ended June 30, 2018 Beginning balance $ 57,200 $ 10,607 $ 2,592 $ 1,972 $ 5,291 $ 17,192 $ 1,000 $ 95,854 Charge-offs (8,662 ) (305 ) (4 ) — (1 ) (2,337 ) — (11,309 ) Recoveries 753 26 — 8 359 386 — 1,532 Net charge-offs (7,909 ) (279 ) (4 ) 8 358 (1,951 ) — (9,777 ) Provision for loan losses and other 10,752 (1,266 ) (413 ) 144 (1,018 ) 3,415 — 11,614 Ending balance $ 60,043 $ 9,062 $ 2,175 $ 2,124 $ 4,631 $ 18,656 $ 1,000 $ 97,691 Six Months Ended June 30, 2019 Beginning balance $ 63,276 $ 7,900 $ 2,464 $ 2,173 $ 4,934 $ 21,472 $ 1,200 $ 103,419 Charge-offs (12,967 ) (2,233 ) (340 ) (6 ) (539 ) (6,116 ) — (22,201 ) Recoveries 2,559 161 1 16 66 973 — 3,776 Net charge-offs (10,408 ) (2,072 ) (339 ) 10 (473 ) (5,143 ) — (18,425 ) Provision for loan losses and other 13,496 1,667 34 (321 ) 536 6,523 — 21,935 Ending balance $ 66,364 $ 7,495 $ 2,159 $ 1,862 $ 4,997 $ 22,852 $ 1,200 $ 106,929 Six Months Ended June 30, 2018 Beginning balance $ 55,791 $ 10,996 $ 2,534 $ 3,481 $ 6,381 $ 16,546 $ 1,000 $ 96,729 Charge-offs (23,332 ) (766 ) (4 ) — (70 ) (4,222 ) — (28,394 ) Recoveries 1,291 123 — 21 398 728 — 2,561 Net charge-offs (22,041 ) (643 ) (4 ) 21 328 (3,494 ) — (25,833 ) Provision for loan losses and other 26,293 (1,291 ) (355 ) (1,378 ) (2,078 ) 5,604 — 26,795 Ending balance $ 60,043 $ 9,062 $ 2,175 $ 2,124 $ 4,631 $ 18,656 $ 1,000 $ 97,691 |
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, 2019 and December 31, 2018 . 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, 2019 Commercial, industrial, and agricultural $ 23,549 $ 4,878,817 $ 52,624 $ 4,954,990 $ 2,000 $ 64,024 $ 340 $ 66,364 Commercial real estate: Office, retail, and industrial 15,291 1,907,604 13,682 1,936,577 67 6,473 955 7,495 Multi-family 5,161 775,648 6,346 787,155 — 2,064 95 2,159 Construction 123 645,235 9,249 654,607 — 1,777 85 1,862 Other commercial real estate 3,334 1,375,786 68,553 1,447,673 — 4,258 739 4,997 Total commercial real estate 23,909 4,704,273 97,830 4,826,012 67 14,572 1,874 16,513 Total corporate loans 47,458 9,583,090 150,454 9,781,002 2,067 78,596 2,214 82,877 Consumer — 2,715,033 23,569 2,738,602 — 21,756 1,096 22,852 Reserve for unfunded commitments — — — — — 1,200 — 1,200 Total loans $ 47,458 $ 12,298,123 $ 174,023 $ 12,519,604 $ 2,067 $ 101,552 $ 3,310 $ 106,929 As of December 31, 2018 Commercial, industrial, and agricultural $ 32,415 $ 4,514,349 $ 4,457 $ 4,551,221 $ 3,961 $ 58,947 $ 368 $ 63,276 Commercial real estate: Office, retail, and industrial 5,057 1,799,304 16,556 1,820,917 748 5,984 1,168 7,900 Multi-family 3,492 747,030 13,663 764,185 — 2,154 310 2,464 Construction — 644,499 4,838 649,337 — 2,019 154 2,173 Other commercial real estate 1,545 1,305,444 54,821 1,361,810 — 4,180 754 4,934 Total commercial real estate 10,094 4,496,277 89,878 4,596,249 748 14,337 2,386 17,471 Total corporate loans 42,509 9,010,626 94,335 9,147,470 4,709 73,284 2,754 80,747 Consumer — 2,279,780 19,533 2,299,313 — 20,094 1,378 21,472 Reserve for unfunded commitments — — — — — 1,200 — 1,200 Total loans $ 42,509 $ 11,290,406 $ 113,868 $ 11,446,783 $ 4,709 $ 94,578 $ 4,132 $ 103,419 |
Impaired Financing Receivables | 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, 2019 and 2018 . 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, 2019 2018 Average Interest Income Recognized (1) Average Interest Income Recognized (1) Commercial and industrial $ 24,530 $ 10 $ 31,787 $ 14 Agricultural 4,292 11 3,386 25 Commercial real estate: Office, retail, and industrial 15,567 1 9,509 656 Multi-family 4,169 — 2,166 48 Construction 62 — — — Other commercial real estate 2,433 26 2,694 61 Total commercial real estate 22,231 27 14,369 765 Total impaired loans $ 51,053 $ 48 $ 49,542 $ 804 Six Months Ended June 30, 2019 2018 Average Interest (1) Average Interest (1) Commercial and industrial $ 26,653 $ 26 $ 34,097 $ 36 Agricultural 3,366 11 2,257 25 Commercial real estate: Office, retail, and industrial 12,063 4 9,942 768 Multi-family 3,943 — 1,651 55 Construction 41 — — — Other commercial real estate 2,137 42 2,285 113 Total commercial real estate 18,184 46 13,878 936 Total impaired loans $ 48,203 $ 83 $ 50,232 $ 997 (1) Recorded using the cash basis of accounting. The following table presents loans individually evaluated for impairment by class of loan as of June 30, 2019 and December 31, 2018 . PCI loans are excluded from this disclosure. Impaired Loans Individually Evaluated by Class (Dollar amounts in thousands) As of June 30, 2019 As of December 31, 2018 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 $ 13,578 $ 3,503 $ 37,779 $ 670 $ 7,550 $ 23,349 $ 49,102 $ 3,960 Agricultural 1,156 5,312 9,565 1,330 1,318 198 3,997 1 Commercial real estate: Office, retail, and industrial 14,335 956 16,274 67 1,861 3,196 6,141 748 Multi-family 5,161 — 5,497 — 3,492 — 3,492 — Construction 123 — 123 — — — — — Other commercial real estate 3,334 — 3,492 — 1,545 — 1,612 — Total commercial real estate 22,953 956 25,386 67 6,898 3,196 11,245 748 Total impaired loans individually evaluated for impairment $ 37,687 $ 9,771 $ 72,730 $ 2,067 $ 15,766 $ 26,743 $ 64,344 $ 4,709 |
Financing Receivable Credit Quality Indicators | Consumer Credit Quality Indicators by Class (Dollar amounts in thousands) Performing Non-accrual Total As of June 30, 2019 Home equity $ 868,847 $ 5,839 $ 874,686 1-4 family mortgages 1,388,028 3,786 1,391,814 Installment 472,102 — 472,102 Total consumer loans $ 2,728,977 $ 9,625 $ 2,738,602 As of December 31, 2018 Home equity $ 846,214 $ 5,393 $ 851,607 1-4 family mortgages 1,013,325 3,856 1,017,181 Installment 430,525 — 430,525 Total consumer loans $ 2,290,064 $ 9,249 $ 2,299,313 June 30, 2019 and December 31, 2018 . Corporate Credit Quality Indicators by Class (Dollar amounts in thousands) Pass Special Mention (1)(4) Substandard (2)(4) Non-accrual (3) Total As of June 30, 2019 Commercial and industrial $ 4,326,163 $ 74,221 $ 104,208 $ 19,809 $ 4,524,401 Agricultural 383,404 23,834 16,639 6,712 430,589 Commercial real estate: Office, retail, and industrial 1,833,410 41,134 44,158 17,875 1,936,577 Multi-family 765,375 10,385 6,073 5,322 787,155 Construction 632,922 12,591 8,942 152 654,607 Other commercial real estate 1,375,902 29,009 38,780 3,982 1,447,673 Total commercial real estate 4,607,609 93,119 97,953 27,331 4,826,012 Total corporate loans $ 9,317,176 $ 191,174 $ 218,800 $ 53,852 $ 9,781,002 As of December 31, 2018 Commercial and industrial $ 3,952,066 $ 74,878 $ 59,842 $ 33,507 $ 4,120,293 Agricultural 407,542 10,070 11,752 1,564 430,928 Commercial real estate: Office, retail, and industrial 1,735,426 35,853 43,128 6,510 1,820,917 Multi-family 745,131 9,273 6,674 3,107 764,185 Construction 624,446 16,370 8,377 144 649,337 Other commercial real estate 1,294,128 47,736 17,092 2,854 1,361,810 Total commercial real estate 4,399,131 109,232 75,271 12,615 4,596,249 Total corporate loans $ 8,758,739 $ 194,180 $ 146,865 $ 47,686 $ 9,147,470 (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 $236,000 as of June 30, 2019 and $630,000 as of December 31, 2018 . |
Troubled Debt Restructuring Activity Rollforward | The table below presents TDR s by class as of June 30, 2019 and December 31, 2018 . 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, 2019 As of December 31, 2018 Accruing Non-accrual (1) Total Accruing Non-accrual (1) Total Commercial and industrial $ 236 $ 6,928 $ 7,164 $ 246 $ 5,994 $ 6,240 Agricultural — — — — — — Commercial real estate: Office, retail, and industrial — 383 383 — — — Multi-family 167 — 167 557 — 557 Construction — — — — — — Other commercial real estate 176 — 176 181 — 181 Total commercial real estate 343 383 726 738 — 738 Total corporate loans 579 7,311 7,890 984 5,994 6,978 Home equity 109 257 366 113 327 440 1-4 family mortgages 753 273 1,026 769 291 1,060 Installment — — — — — — Total consumer loans 862 530 1,392 882 618 1,500 Total loans $ 1,441 $ 7,841 $ 9,282 $ 1,866 $ 6,612 $ 8,478 (1) These TDR s are included in non-accrual loans in the preceding tables. A rollforward of the carrying value of TDR s for the quarters and six months ended June 30, 2019 and 2018 is presented in the following table. TDR Rollforward (Dollar amounts in thousands) Quarters Ended Six Months Ended 2019 2018 2019 2018 Accruing Beginning balance $ 1,844 $ 1,778 $ 1,866 $ 1,796 Additions — — 12 — Net payments (20 ) (18 ) (54 ) (36 ) Net transfers to non-accrual (383 ) — (383 ) — Ending balance 1,441 1,760 1,441 1,760 Non-accrual Beginning balance 9,375 20,466 6,612 24,533 Additions — — — 355 Net advances (payments) (1,447 ) (9,865 ) 1,474 (12,978 ) Charge-offs (470 ) (2,363 ) (628 ) (3,672 ) Net transfers from accruing 383 — 383 — Ending balance 7,841 8,238 7,841 8,238 Total TDRs $ 9,282 $ 9,998 $ 9,282 $ 9,998 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Liability | The following summary reflects the future minimum payments by year required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year and a reconciliation of those payments to the Company's lease liability as of June 30, 2019 . Lease Liability (Dollar amounts in thousands) As of Year Ending December 31, 2019 $ 8,124 2020 17,409 2021 17,277 2022 17,284 2023 17,419 2024 and thereafter 115,479 Total minimum lease payments 192,992 Discount (1) (32,973 ) Lease liability (2) $ 160,019 (1) Represents the net present value adjustment related to minimum lease payments. (2) Included in accrued interest payable and other liabilities in the Consolidated Statements of Financial Condition. |
Schedule of Net Operating Lease Expense | The following table presents net operating lease expense for the quarters and six months ended June 30, 2019 and 2018 . Net Operating Lease Expense (Dollar amounts in thousands) Quarters Ended Six Months Ended 2019 2018 2019 2018 Lease expense charged to operations $ 4,426 $ 4,946 $ 8,486 $ 9,943 Accretion of operating lease intangible (1) — (210 ) — (505 ) Accretion of deferred gain on sale-leaseback transaction (1) — (1,463 ) — (2,926 ) Rental income from premises leased to others (1) (165 ) (108 ) (322 ) (262 ) Net operating lease expense $ 4,261 $ 3,165 $ 8,164 $ 6,250 (1) Included as reductions to net occupancy and equipment expense in the Condensed Consolidated Statements of Income. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 2019 2018 2019 2018 Net income $ 47,014 $ 29,600 $ 93,072 $ 63,110 Net income applicable to non-vested restricted shares (389 ) (240 ) (792 ) (551 ) Net income applicable to common shares $ 46,625 $ 29,360 $ 92,280 $ 62,559 Weighted-average common shares outstanding: Weighted-average common shares outstanding (basic) 108,467 102,159 107,126 102,041 Dilutive effect of common stock equivalents — — — 8 Weighted-average diluted common shares outstanding 108,467 102,159 107,126 102,049 Basic EPS $ 0.43 $ 0.29 $ 0.86 $ 0.61 Diluted EPS $ 0.43 $ 0.29 $ 0.86 $ 0.61 Anti-dilutive shares not included in the computation of diluted EPS (1) — — — 54 (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. The final outstanding stock options were exercised during the first quarter of 2018. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | Cash Flow Hedges (Dollar amounts in thousands) As of June 30, 2019 December 31, 2018 Gross notional amount outstanding $ 2,030,000 $ 2,280,000 Derivative asset fair value in other assets (1) 2,008 6,889 Derivative liability fair value in other liabilities (1) (1,819 ) (11,328 ) Weighted-average interest rate received 2.13 % 2.12 % Weighted-average interest rate paid 2.22 % 2.20 % Weighted-average maturity (in years) 1.27 1.53 (1) Certain cash flow hedges are transacted through a clearinghouse ("centrally cleared") and their change in fair value is settled by the counterparties to the transaction, which results in no fair value. The following table presents the impact of derivative instruments on net interest income for the quarters and six months ended June 30, 2019 and 2018 . Hedge Income (Dollar amounts in thousands) Quarters Ended Six Months Ended 2019 2018 2019 2018 Cash Flow Hedges Interest rate swaps in interest income 1,355 376 2,748 647 Interest rate swaps in interest expense (1,924 ) (503 ) (3,948 ) (1,109 ) Total cash flow hedges (569 ) (127 ) (1,200 ) (462 ) |
Schedule of Derivative Instruments | Other Derivative Instruments (Dollar amounts in thousands) As of June 30, 2019 December 31, 2018 Gross notional amount outstanding $ 3,289,412 $ 3,085,226 Derivative asset fair value in other assets (1) 57,897 25,168 Derivative liability fair value in other liabilities (1) (21,372 ) (17,533 ) Fair value of derivative (2) 21,494 18,013 (1) Certain other derivative instruments are centrally cleared and their change in fair value is settled by the counterparties to the transaction, which results in no fair value. (2) This amount represents the fair value if credit risk related contingent features were triggered. |
Cash Flow Hedge Accounting on AOCI | The following table presents the impact of derivative instruments on comprehensive income and the reclassification of gains (losses) from accumulated other comprehensive loss to net interest income for the quarters and six months ended June 30, 2019 and 2018 . Cash Flow Hedge Accounting on AOCI (Dollar amounts in thousands) Quarters Ended Six Months Ended 2019 2018 2019 2018 Gains (losses) recognized in other comprehensive income Interest rate swaps in interest income $ 5,944 $ 3,577 $ 9,297 $ 10,573 Interest rate swaps in interest expense (7,816 ) (2,860 ) (11,996 ) (10,043 ) Reclassification of gains (losses) included in net income Interest rate swaps in interest income $ 1,355 $ 376 $ 2,748 $ 647 Interest rate swaps in interest expense (1,924 ) (503 ) (3,948 ) (1,109 ) |
Offsetting Assets | The following table presents the fair value of the Company's derivatives and offsetting positions as of June 30, 2019 and December 31, 2018 . Fair Value of Offsetting Derivatives (Dollar amounts in thousands) As of June 30, 2019 As of December 31, 2018 Assets Liabilities Assets Liabilities Gross amounts recognized $ 59,905 $ 23,191 $ 32,057 $ 28,861 Less: amounts offset in the Consolidated Statements of Financial Condition — — — — Net amount presented in the Consolidated Statements of Financial Condition (1) 59,905 23,191 32,057 28,861 Gross amounts not offset in the Consolidated Statements of Financial Condition: Offsetting derivative positions (4,088 ) (4,088 ) (11,678 ) (11,678 ) Cash collateral pledged — (12,618 ) (9,060 ) (3,506 ) Net credit exposure $ 55,817 $ 6,485 $ 11,319 $ 13,677 (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, 2019 and December 31, 2018 . Fair Value of Offsetting Derivatives (Dollar amounts in thousands) As of June 30, 2019 As of December 31, 2018 Assets Liabilities Assets Liabilities Gross amounts recognized $ 59,905 $ 23,191 $ 32,057 $ 28,861 Less: amounts offset in the Consolidated Statements of Financial Condition — — — — Net amount presented in the Consolidated Statements of Financial Condition (1) 59,905 23,191 32,057 28,861 Gross amounts not offset in the Consolidated Statements of Financial Condition: Offsetting derivative positions (4,088 ) (4,088 ) (11,678 ) (11,678 ) Cash collateral pledged — (12,618 ) (9,060 ) (3,506 ) Net credit exposure $ 55,817 $ 6,485 $ 11,319 $ 13,677 (1) Included in other assets or other liabilities in the Consolidated Statements of Financial Condition. |
Commitments, Guarantees, and _2
Commitments, Guarantees, and Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Disclosure | Contractual or Notional Amounts of Financial Instruments (Dollar amounts in thousands) As of June 30, 2019 December 31, 2018 Commitments to extend credit: Commercial, industrial, and agricultural $ 1,699,246 $ 1,729,286 Commercial real estate 283,183 296,882 Home equity 583,198 570,553 Other commitments (1) 256,356 244,917 Total commitments to extend credit $ 2,821,983 $ 2,841,638 Letters of credit $ 114,304 $ 112,728 (1) Other commitments includes installment and overdraft protection program commitments. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 As of December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Equity securities $ 22,613 $ 13,040 $ — $ 19,658 $ 11,148 $ — Securities available-for-sale U.S. treasury securities 43,087 — — 37,767 — — U.S. agency securities — 187,238 — — 142,563 — CMOs — 1,549,728 — — 1,315,209 — MBSs — 670,407 — — 466,934 — Municipal securities — 238,342 — — 227,187 — Corporate debt securities — 104,514 — — 82,349 — Total securities available-for-sale 43,087 2,750,229 — 37,767 2,234,242 — Mortgage servicing rights ("MSRs") (1) — — 5,831 — — 6,730 Derivative assets (1) — 59,905 — — 32,057 — Liabilities Derivative liabilities (2) $ — $ 23,191 $ — $ — $ 28,861 $ — (1) Included in other assets in the Consolidated Statements of Financial Condition. (2) Included in other liabilities in the Consolidated Statements of Financial Condition. |
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, 2019 and December 31, 2018 . Significant Unobservable Inputs Used in the Valuation of MSR s As of June 30, 2019 December 31, 2018 Prepayment speed 6.8 % - 10.5% 6.5 % - 13.5% Maturity (months) 18 - 89 20 - 104 Discount rate 9.5 % - 12.0% 9.5 % - 12.0% |
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, 2019 and 2018 is presented in the following table. Carrying Value of MSR s (Dollar amounts in thousands) Quarters Ended Six Months Ended 2019 2018 2019 2018 Beginning balance $ 6,228 $ 6,468 $ 6,730 $ 5,894 New MSRs 204 393 457 569 Total gains (losses) included in earnings (1) : Changes in valuation inputs and assumptions (389 ) 2 (989 ) 562 Other changes in fair value (2) (212 ) (192 ) (367 ) (354 ) Ending balance (3) $ 5,831 $ 6,671 $ 5,831 $ 6,671 Contractual servicing fees earned (1) $ 390 $ 369 $ 771 $ 747 (1) Included in mortgage banking income in the Condensed Consolidated Statements of Income and related to assets held as of June 30, 2019 and 2018 . (2) Primarily represents changes in expected future cash flows due to payoffs and paydowns. (3) Included in other assets in the Consolidated Statements of Financial Condition. |
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, 2019 As of December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Collateral-dependent impaired loans (1) $ — $ — $ 21,089 $ — $ — $ 24,565 OREO (2) — — 1,820 — — 6,012 Loans held-for-sale (3) — — 16,948 — — 3,478 Assets held-for-sale (4) — — 3,655 — — 3,722 (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, 2019 December 31, 2018 Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value Assets Cash and due from banks 1 $ 199,684 $ 199,684 $ 211,189 $ 211,189 Interest-bearing deposits in other banks 2 126,966 126,966 78,069 78,069 Securities held-to-maturity 2 23,277 22,405 10,176 9,871 FHLB and FRB stock 2 109,466 109,466 80,302 80,302 Loans 3 12,415,371 12,273,439 11,346,668 11,052,040 Investment in BOLI 3 297,118 297,118 296,733 296,733 Accrued interest receivable 3 59,765 59,765 54,847 54,847 Liabilities Deposits 2 $ 13,188,588 $ 13,185,124 $ 12,084,112 $ 12,064,604 Borrowed funds 2 1,407,378 1,407,378 906,079 906,079 Senior and subordinated debt 2 233,538 272,085 203,808 211,207 Accrued interest payable 2 13,091 13,091 10,005 10,005 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Jan. 01, 2018 | [3] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operating lease, right-of-use asset | $ 139,900 | $ 143,600 | ||||
Lease liability | [1] | $ 160,019 | ||||
Adjustments to apply recent accounting pronouncements | 47,257 | [2] | $ 0 | |||
Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Adjustments to apply recent accounting pronouncements | $ 47,257 | [2] | $ 6,689 | |||
[1] | Included in accrued interest payable and other liabilities in the Consolidated Statements of Financial Condition. | |||||
[2] | As a result of accounting guidance adopted in the first quarter of 2019, the remaining deferred gain on a sale-leaseback transaction was recognized as a cumulative-effect adjustment to retained earnings as of January 1, 2019. For further discussion of this guidance, see Note 2 , " Recent Accounting Pronouncements ." | |||||
[3] | As a result of accounting guidance adopted in the first quarter of 2018, certain reclassifications were made from accumulated other comprehensive loss to retained earnings as of January 1, 2018. |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | May 09, 2019 | Oct. 12, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 16, 2019 |
Business Acquisition [Line Items] | |||||||
Acquisition and integration related expenses | $ 9,514 | $ 0 | $ 13,205 | $ 0 | |||
Bridgeview Bancorp, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Total assets | $ 1,161,640 | ||||||
Total deposits | 986,754 | ||||||
Loans | $ 709,889 | ||||||
Fixed exchange ratio (in shares) | 0.2767 | ||||||
Cash paid per share (in dollars per share) | $ 1.66 | ||||||
Consideration transferred | $ 135,352 | ||||||
Common stock, shares issued (in shares) | 4,728,541 | ||||||
Cash paid | $ 37,140 | ||||||
Goodwill | $ 57,377 | ||||||
Northern Oak Wealth Management, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Assets under management acquired | $ 800,000 | ||||||
Northern States Financial Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Total assets | $ 578,672 | ||||||
Total deposits | 463,160 | ||||||
Loans | $ 284,924 | ||||||
Fixed exchange ratio (in shares) | 0.0363 | ||||||
Consideration transferred | $ 83,303 | ||||||
Common stock, shares issued (in shares) | 3,310,912 | ||||||
Cash paid | $ 0 | ||||||
Goodwill | $ 30,123 |
Acquisitions - Schedule of Acqu
Acquisitions - Schedule of Acquisition Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | May 09, 2019 | Oct. 12, 2018 |
Bridgeview Bancorp, Inc. | ||
Assets | ||
Cash and due from banks and interest-bearing deposits in other banks | $ 35,097 | |
Equity securities | 6,966 | |
Securities available-for-sale | 263,695 | |
Securities held-to-maturity | 13,426 | |
FHLB and FRB stock | 1,481 | |
Loans | 709,889 | |
OREO | 6,237 | |
Investment in BOLI | 0 | |
Goodwill | 57,377 | |
Other intangible assets | 15,603 | |
Premises, furniture, and equipment | 18,145 | |
Accrued interest receivable and other assets | 33,724 | |
Total assets | 1,161,640 | |
Liabilities | ||
Noninterest-bearing deposits | 179,267 | |
Interest-bearing deposits | 807,487 | |
Total deposits | 986,754 | |
Borrowed funds | 1,746 | |
Senior and subordinated debt | 29,360 | |
Accrued interest payable and other liabilities | 8,428 | |
Total liabilities | 1,026,288 | |
Consideration Paid | ||
Common stock (2019 – 4,728,541, shares issued at $28.61 per share, 2018 – 3,310,912, shares issued at $25.16 per share), net of issuance costs | 98,212 | |
Cash paid | 37,140 | |
Total consideration paid | $ 135,352 | |
Shares issued (in dollars per share) | $ 28.61 | |
Common stock, shares issued (in shares) | 4,728,541 | |
Northern States Financial Corporation | ||
Assets | ||
Cash and due from banks and interest-bearing deposits in other banks | $ 160,145 | |
Equity securities | 3,915 | |
Securities available-for-sale | 47,149 | |
Securities held-to-maturity | 0 | |
FHLB and FRB stock | 554 | |
Loans | 284,924 | |
OREO | 2,549 | |
Investment in BOLI | 11,104 | |
Goodwill | 30,123 | |
Other intangible assets | 12,230 | |
Premises, furniture, and equipment | 5,964 | |
Accrued interest receivable and other assets | 20,015 | |
Total assets | 578,672 | |
Liabilities | ||
Noninterest-bearing deposits | 346,714 | |
Interest-bearing deposits | 116,446 | |
Total deposits | 463,160 | |
Borrowed funds | 18,218 | |
Senior and subordinated debt | 8,038 | |
Accrued interest payable and other liabilities | 5,953 | |
Total liabilities | 495,369 | |
Consideration Paid | ||
Common stock (2019 – 4,728,541, shares issued at $28.61 per share, 2018 – 3,310,912, shares issued at $25.16 per share), net of issuance costs | 83,303 | |
Cash paid | 0 | |
Total consideration paid | $ 83,303 | |
Shares issued (in dollars per share) | $ 25.16 | |
Common stock, shares issued (in shares) | 3,310,912 |
Securities - Securities Portfol
Securities - Securities Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | $ 40,690 | $ 30,806 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,768,238 | 2,311,920 |
Gross Unrealized Gains | 32,342 | 4,405 |
Gross Unrealized Losses | (7,264) | (44,316) |
Fair Value | 2,793,316 | 2,272,009 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 23,277 | 10,176 |
Fair Value | 22,405 | |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 42,946 | 37,925 |
Gross Unrealized Gains | 162 | 17 |
Gross Unrealized Losses | (21) | (175) |
Fair Value | 43,087 | 37,767 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 187,085 | 144,125 |
Gross Unrealized Gains | 813 | 45 |
Gross Unrealized Losses | (660) | (1,607) |
Fair Value | 187,238 | 142,563 |
Collateralized mortgage obligations (CMOs) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,533,298 | 1,336,531 |
Gross Unrealized Gains | 19,111 | 3,362 |
Gross Unrealized Losses | (2,681) | (24,684) |
Fair Value | 1,549,728 | 1,315,209 |
Other mortgage-backed securities (MBSs) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 666,454 | 477,665 |
Gross Unrealized Gains | 6,768 | 520 |
Gross Unrealized Losses | (2,815) | (11,251) |
Fair Value | 670,407 | 466,934 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 234,028 | 229,600 |
Gross Unrealized Gains | 4,420 | 461 |
Gross Unrealized Losses | (106) | (2,874) |
Fair Value | 238,342 | 227,187 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 23,277 | 10,176 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (872) | (305) |
Fair Value | 22,405 | 9,871 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 104,427 | 86,074 |
Gross Unrealized Gains | 1,068 | 0 |
Gross Unrealized Losses | (981) | (3,725) |
Fair Value | 104,514 | 82,349 |
Equity securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | $ 40,690 | $ 30,806 |
Securities - Remaining Contract
Securities - Remaining Contractual Maturity of Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale Securities, Amortized Cost [Abstract] | ||
One year or less | $ 133,657 | |
After one year to five years | 167,113 | |
After five years to ten years | 267,707 | |
After ten years | 9 | |
Securities that do not have a single contractual maturity date | 2,199,752 | |
Amortized Cost | 2,768,238 | $ 2,311,920 |
Fair Value | ||
One year or less | 134,761 | |
After one year to five years | 168,493 | |
After five years to ten years | 269,918 | |
After ten years | 9 | |
Securities that do not have a single contractual maturity date | 2,220,135 | |
Fair Value | 2,793,316 | 2,272,009 |
Held-to-maturity Securities, Amortized Cost [Abstract] | ||
One year or less | 8,736 | |
After one year to five years | 5,982 | |
After five years to ten years | 5,531 | |
After ten years | 3,028 | |
Securities that do not have a single contractual maturity date | 0 | |
Amortized Cost | 23,277 | $ 10,176 |
Held-to-maturity Securities, Fair Value [Abstract] | ||
One year or less | 8,409 | |
After one year to five years | 5,758 | |
After five years to ten years | 5,324 | |
After ten years | 2,914 | |
Securities that do not have a single contractual maturity date | 0 | |
Fair Value | $ 22,405 |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Available-for-sale securities pledged | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,200,000,000 | ||
Held-to-maturity securities pledged as collateral | 0 | 0 | $ 0 | ||
Realized gains on securities available-for-sale | 0 | $ 0 | 0 | $ 0 | |
Proceeds from sales of securities available-for-sale | 93,300,000 | 93,332,000 | 0 | ||
Other-than-temporary securities impairment (OTTI) | $ 0 | $ 0 | $ 0 | $ 0 |
Securities - Securities In An U
Securities - Securities In An Unrealized Loss Position (Details) $ in Thousands | Jun. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Securities Available-for-Sale | ||
Number of Securities | security | 313 | 882 |
Fair Value | ||
Less Than 12 Months | $ 43,047 | $ 501,061 |
12 Months or Longer | 770,455 | 1,365,068 |
Total | 813,502 | 1,866,129 |
Unrealized Losses | ||
Less Than 12 Months | 138 | 8,046 |
12 Months or Longer | 7,126 | 36,270 |
Total | $ 7,264 | $ 44,316 |
U.S. treasury securities | ||
Securities Available-for-Sale | ||
Number of Securities | security | 5 | 17 |
Fair Value | ||
Less Than 12 Months | $ 0 | $ 15,894 |
12 Months or Longer | 13,982 | 13,886 |
Total | 13,982 | 29,780 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 57 |
12 Months or Longer | 21 | 118 |
Total | $ 21 | $ 175 |
U.S. agency securities | ||
Securities Available-for-Sale | ||
Number of Securities | security | 51 | 74 |
Fair Value | ||
Less Than 12 Months | $ 186 | $ 34,263 |
12 Months or Longer | 82,022 | 93,227 |
Total | 82,208 | 127,490 |
Unrealized Losses | ||
Less Than 12 Months | 7 | 320 |
12 Months or Longer | 653 | 1,287 |
Total | $ 660 | $ 1,607 |
CMOs | ||
Securities Available-for-Sale | ||
Number of Securities | security | 108 | 234 |
Fair Value | ||
Less Than 12 Months | $ 9,896 | $ 171,901 |
12 Months or Longer | 371,269 | 863,747 |
Total | 381,165 | 1,035,648 |
Unrealized Losses | ||
Less Than 12 Months | 31 | 1,671 |
12 Months or Longer | 2,650 | 23,013 |
Total | $ 2,681 | $ 24,684 |
MBSs | ||
Securities Available-for-Sale | ||
Number of Securities | security | 83 | 118 |
Fair Value | ||
Less Than 12 Months | $ 21,325 | $ 135,791 |
12 Months or Longer | 250,402 | 284,273 |
Total | 271,727 | 420,064 |
Unrealized Losses | ||
Less Than 12 Months | 71 | 1,715 |
12 Months or Longer | 2,744 | 9,536 |
Total | $ 2,815 | $ 11,251 |
Municipal securities | ||
Securities Available-for-Sale | ||
Number of Securities | security | 57 | 423 |
Fair Value | ||
Less Than 12 Months | $ 608 | $ 60,863 |
12 Months or Longer | 23,646 | 109,935 |
Total | 24,254 | 170,798 |
Unrealized Losses | ||
Less Than 12 Months | 8 | 558 |
12 Months or Longer | 98 | 2,316 |
Total | $ 106 | $ 2,874 |
Securities Held-to-Maturity | ||
Number of Securities | security | 32 | 5 |
Fair Value | ||
Less Than 12 Months | $ 12,884 | $ 0 |
12 Months or Longer | 9,521 | 9,871 |
Total | 22,405 | 9,871 |
Unrealized Losses | ||
Less Than 12 Months | 501 | 0 |
12 Months or Longer | 371 | 305 |
Total | $ 872 | $ 305 |
Corporate debt securities | ||
Securities Available-for-Sale | ||
Number of Securities | security | 9 | 16 |
Fair Value | ||
Less Than 12 Months | $ 11,032 | $ 82,349 |
12 Months or Longer | 29,134 | 0 |
Total | 40,166 | 82,349 |
Unrealized Losses | ||
Less Than 12 Months | 21 | 3,725 |
12 Months or Longer | 960 | 0 |
Total | $ 981 | $ 3,725 |
Loans - Loan Portfolio (Details
Loans - Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 12,519,604 | $ 11,446,783 |
Deferred loan fees included in total loans | 7,382 | 6,715 |
Overdrawn demand deposits included in total loans | 8,875 | 8,583 |
Commercial and industrial | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,524,401 | 4,120,293 |
Commercial and industrial | Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 430,589 | 430,928 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,826,012 | 4,596,249 |
Commercial real estate | Office, retail, and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,936,577 | 1,820,917 |
Commercial real estate | Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 787,155 | 764,185 |
Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 654,607 | 649,337 |
Commercial real estate | Other commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,447,673 | 1,361,810 |
Total corporate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 9,781,002 | 9,147,470 |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,738,602 | 2,299,313 |
Consumer loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 874,686 | 851,607 |
Consumer loans | 1-4 family mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,391,814 | 1,017,181 |
Consumer loans | Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 472,102 | $ 430,525 |
Loans - Loans Sales (Details)
Loans - Loans Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total net gains on loan sales | $ 1,981 | $ 1,509 | $ 3,391 | $ 3,134 | |
Corporate loan sales | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from sales | 2,178 | 3,991 | 5,376 | 12,312 | |
Less book value of loans sold | 2,132 | 3,861 | 5,248 | 11,984 | |
Total net gains on loan sales | [1] | 46 | 130 | 128 | 328 |
1-4 family mortgage loan sales | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from sales | 95,408 | 65,715 | 154,191 | 130,900 | |
Less book value of loans sold | 93,473 | 64,336 | 150,928 | 128,094 | |
Total net gains on loan sales | [2] | $ 1,935 | $ 1,379 | $ 3,263 | $ 2,806 |
[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 - Ac
Acquired and Covered Loans - Acquired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Acquired Loans (Details) - Acquired Loans [Line Items] | |||
Non-PCI | [1] | $ 1,570,109 | $ 1,252,361 |
Total | [1] | 1,744,132 | 1,366,229 |
Acquired loans | |||
Acquired Loans (Details) - Acquired Loans [Line Items] | |||
Non-PCI | [1] | 1,565,943 | 1,247,492 |
Total | [1] | 1,734,403 | 1,355,541 |
Covered loans | |||
Acquired Loans (Details) - Acquired Loans [Line Items] | |||
Non-PCI | [1] | 4,166 | 4,869 |
Total | [1] | 9,729 | 10,688 |
Receivables acquired with deteriorated credit quality | |||
Acquired Loans (Details) - Acquired Loans [Line Items] | |||
PCI | [1] | 174,023 | 113,868 |
Receivables acquired with deteriorated credit quality | Acquired loans | |||
Acquired Loans (Details) - Acquired Loans [Line Items] | |||
PCI | [1] | 168,460 | 108,049 |
Receivables acquired with deteriorated credit quality | Covered loans | |||
Acquired Loans (Details) - Acquired Loans [Line Items] | |||
PCI | [1] | $ 5,563 | $ 5,819 |
[1] | Included in loans in the Consolidated Statements of Financial Condition. |
Acquired and Covered Loans - Ad
Acquired and Covered Loans - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities Accretable Yield Movement Schedule [Line Items] | |||||
Outstanding balance of PCI loans | $ 251,800 | $ 251,800 | $ 175,200 | ||
Renewed non-purchased credit impaired loans | 490,000 | 490,000 | 458,000 | ||
FDIC indemnification asset | 1,500 | 1,500 | $ 2,100 | ||
Accretion on acquired loans | 3,670 | $ 2,922 | 7,871 | $ 6,540 | |
Acquired and covered receivables | |||||
Certain Loans Acquired in Transfer Accounted for as Debt Securities Accretable Yield Movement Schedule [Line Items] | |||||
Accretion on acquired loans | $ 10,300 | $ 4,400 | $ 16,700 | $ 9,600 |
Acquired and Covered Loans - Ch
Acquired and Covered Loans - Changes in Accretable Yield (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Changes in Accretable Yield [Roll Forward] | |||||
Beginning balances | $ 39,535 | $ 36,543 | $ 43,725 | $ 32,957 | |
Additions | 16,037 | 0 | 16,037 | 0 | |
Accretion | (3,670) | (2,922) | (7,871) | (6,540) | |
Other | [1] | (1,017) | 5,387 | (1,006) | 12,591 |
Ending balance | $ 50,885 | $ 39,008 | $ 50,885 | $ 39,008 | |
[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_3
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS - Aging Analysis of Past Due Loans and Non-Performing Loans by Class (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable, Past Due [Line Items] | |||
Current | [1] | $ 12,435,186 | $ 11,357,176 |
Total Past Due | 84,418 | 89,607 | |
Total Loans | 12,519,604 | 11,446,783 | |
Non-accrual | 63,477 | 56,935 | |
90 Days or More Past Due, Still Accruing Interest | 2,615 | 8,282 | |
30-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 44,339 | 40,102 | |
90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 40,079 | 49,505 | |
Commercial, Industrial, and Agricultural | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 4,954,990 | 4,551,221 | |
Commercial, Industrial, and Agricultural | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Current | [1] | 4,499,340 | 4,085,164 |
Total Past Due | 25,061 | 35,129 | |
Total Loans | 4,524,401 | 4,120,293 | |
Non-accrual | 19,809 | 33,507 | |
90 Days or More Past Due, Still Accruing Interest | 1,469 | 422 | |
Commercial, Industrial, and Agricultural | Agricultural | |||
Financing Receivable, Past Due [Line Items] | |||
Current | [1] | 423,157 | 428,357 |
Total Past Due | 7,432 | 2,571 | |
Total Loans | 430,589 | 430,928 | |
Non-accrual | 6,712 | 1,564 | |
90 Days or More Past Due, Still Accruing Interest | 0 | 101 | |
Commercial, Industrial, and Agricultural | 30-89 Days Past Due | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 15,147 | 8,832 | |
Commercial, Industrial, and Agricultural | 30-89 Days Past Due | Agricultural | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 5,561 | 940 | |
Commercial, Industrial, and Agricultural | 90 Days or More Past Due | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 9,914 | 26,297 | |
Commercial, Industrial, and Agricultural | 90 Days or More Past Due | Agricultural | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,871 | 1,631 | |
Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Current | [1] | 4,789,121 | 4,561,677 |
Total Past Due | 36,891 | 34,572 | |
Total Loans | 4,826,012 | 4,596,249 | |
Non-accrual | 27,331 | 12,615 | |
90 Days or More Past Due, Still Accruing Interest | 250 | 6,467 | |
Commercial real estate | Office, retail, and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Current | [1] | 1,917,718 | 1,803,059 |
Total Past Due | 18,859 | 17,858 | |
Total Loans | 1,936,577 | 1,820,917 | |
Non-accrual | 17,875 | 6,510 | |
90 Days or More Past Due, Still Accruing Interest | 152 | 4,081 | |
Commercial real estate | Multi-family | |||
Financing Receivable, Past Due [Line Items] | |||
Current | [1] | 781,811 | 759,402 |
Total Past Due | 5,344 | 4,783 | |
Total Loans | 787,155 | 764,185 | |
Non-accrual | 5,322 | 3,107 | |
90 Days or More Past Due, Still Accruing Interest | 0 | 189 | |
Commercial real estate | Construction | |||
Financing Receivable, Past Due [Line Items] | |||
Current | [1] | 651,343 | 645,774 |
Total Past Due | 3,264 | 3,563 | |
Total Loans | 654,607 | 649,337 | |
Non-accrual | 152 | 144 | |
90 Days or More Past Due, Still Accruing Interest | 0 | 0 | |
Commercial real estate | Other commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Current | [1] | 1,438,249 | 1,353,442 |
Total Past Due | 9,424 | 8,368 | |
Total Loans | 1,447,673 | 1,361,810 | |
Non-accrual | 3,982 | 2,854 | |
90 Days or More Past Due, Still Accruing Interest | 98 | 2,197 | |
Commercial real estate | 30-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 13,679 | 18,036 | |
Commercial real estate | 30-89 Days Past Due | Office, retail, and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,323 | 8,209 | |
Commercial real estate | 30-89 Days Past Due | Multi-family | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 404 | 1,487 | |
Commercial real estate | 30-89 Days Past Due | Construction | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 3,112 | 3,419 | |
Commercial real estate | 30-89 Days Past Due | Other commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 7,840 | 4,921 | |
Commercial real estate | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 23,212 | 16,536 | |
Commercial real estate | 90 Days or More Past Due | Office, retail, and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 16,536 | 9,649 | |
Commercial real estate | 90 Days or More Past Due | Multi-family | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 4,940 | 3,296 | |
Commercial real estate | 90 Days or More Past Due | Construction | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 152 | 144 | |
Commercial real estate | 90 Days or More Past Due | Other commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,584 | 3,447 | |
Total corporate loans | |||
Financing Receivable, Past Due [Line Items] | |||
Current | [1] | 9,711,618 | 9,075,198 |
Total Past Due | 69,384 | 72,272 | |
Total Loans | 9,781,002 | 9,147,470 | |
Non-accrual | 53,852 | 47,686 | |
90 Days or More Past Due, Still Accruing Interest | 1,719 | 6,990 | |
Total corporate loans | 30-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 34,387 | 27,808 | |
Total corporate loans | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 34,997 | 44,464 | |
Consumer loans | |||
Financing Receivable, Past Due [Line Items] | |||
Current | [1] | 2,723,568 | 2,281,978 |
Total Past Due | 15,034 | 17,335 | |
Total Loans | 2,738,602 | 2,299,313 | |
Non-accrual | 9,625 | 9,249 | |
90 Days or More Past Due, Still Accruing Interest | 896 | 1,292 | |
Consumer loans | Home equity | |||
Financing Receivable, Past Due [Line Items] | |||
Current | [1] | 866,924 | 843,217 |
Total Past Due | 7,762 | 8,390 | |
Total Loans | 874,686 | 851,607 | |
Non-accrual | 5,839 | 5,393 | |
90 Days or More Past Due, Still Accruing Interest | 13 | 104 | |
Consumer loans | 1-4 family mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Current | [1] | 1,385,737 | 1,009,925 |
Total Past Due | 6,077 | 7,256 | |
Total Loans | 1,391,814 | 1,017,181 | |
Non-accrual | 3,786 | 3,856 | |
90 Days or More Past Due, Still Accruing Interest | 0 | 1,147 | |
Consumer loans | Installment | |||
Financing Receivable, Past Due [Line Items] | |||
Current | [1] | 470,907 | 428,836 |
Total Past Due | 1,195 | 1,689 | |
Total Loans | 472,102 | 430,525 | |
Non-accrual | 0 | 0 | |
90 Days or More Past Due, Still Accruing Interest | 883 | 41 | |
Consumer loans | 30-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 9,952 | 12,294 | |
Consumer loans | 30-89 Days Past Due | Home equity | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 5,243 | 6,285 | |
Consumer loans | 30-89 Days Past Due | 1-4 family mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 4,397 | 4,361 | |
Consumer loans | 30-89 Days Past Due | Installment | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 312 | 1,648 | |
Consumer loans | 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 5,082 | 5,041 | |
Consumer loans | 90 Days or More Past Due | Home equity | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,519 | 2,105 | |
Consumer loans | 90 Days or More Past Due | 1-4 family mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,680 | 2,895 | |
Consumer loans | 90 Days or More Past Due | Installment | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 883 | $ 41 | |
[1] | PCI loans with an accretable yield are considered current. |
Past Due Loans, Allowance For_4
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | $ 104,779 | $ 95,854 | $ 103,419 | $ 96,729 |
Charge-offs | (11,424) | (11,309) | (22,201) | (28,394) |
Recoveries | 2,083 | 1,532 | 3,776 | 2,561 |
Net charge-offs | (9,341) | (9,777) | (18,425) | (25,833) |
Provision for loan losses and other | 11,491 | 11,614 | 21,935 | 26,795 |
Ending balance | 106,929 | 97,691 | 106,929 | 97,691 |
Reserve for Unfunded Commitments | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 1,200 | 1,000 | 1,200 | 1,000 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | 0 | 0 |
Provision for loan losses and other | 0 | 0 | 0 | 0 |
Ending balance | 1,200 | 1,000 | 1,200 | 1,000 |
Commercial, Industrial, and Agricultural | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 64,685 | 57,200 | 63,276 | 55,791 |
Charge-offs | (6,516) | (8,662) | (12,967) | (23,332) |
Recoveries | 1,258 | 753 | 2,559 | 1,291 |
Net charge-offs | (5,258) | (7,909) | (10,408) | (22,041) |
Provision for loan losses and other | 6,937 | 10,752 | 13,496 | 26,293 |
Ending balance | 66,364 | 60,043 | 66,364 | 60,043 |
Commercial Real Estate | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 17,471 | |||
Ending balance | 16,513 | 16,513 | ||
Commercial Real Estate | Office, Retail, and Industrial | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 7,679 | 10,607 | 7,900 | 10,996 |
Charge-offs | (1,605) | (305) | (2,233) | (766) |
Recoveries | 151 | 26 | 161 | 123 |
Net charge-offs | (1,454) | (279) | (2,072) | (643) |
Provision for loan losses and other | 1,270 | (1,266) | 1,667 | (1,291) |
Ending balance | 7,495 | 9,062 | 7,495 | 9,062 |
Commercial Real Estate | Multi-family | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 2,216 | 2,592 | 2,464 | 2,534 |
Charge-offs | 0 | (4) | (340) | (4) |
Recoveries | 0 | 0 | 1 | 0 |
Net charge-offs | 0 | (4) | (339) | (4) |
Provision for loan losses and other | (57) | (413) | 34 | (355) |
Ending balance | 2,159 | 2,175 | 2,159 | 2,175 |
Commercial Real Estate | Construction | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 2,131 | 1,972 | 2,173 | 3,481 |
Charge-offs | 0 | 0 | (6) | 0 |
Recoveries | 10 | 8 | 16 | 21 |
Net charge-offs | 10 | 8 | 10 | 21 |
Provision for loan losses and other | (279) | 144 | (321) | (1,378) |
Ending balance | 1,862 | 2,124 | 1,862 | 2,124 |
Commercial Real Estate | Other Commercial Real Estate | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 4,930 | 5,291 | 4,934 | 6,381 |
Charge-offs | (329) | (1) | (539) | (70) |
Recoveries | 45 | 359 | 66 | 398 |
Net charge-offs | (284) | 358 | (473) | 328 |
Provision for loan losses and other | 351 | (1,018) | 536 | (2,078) |
Ending balance | 4,997 | 4,631 | 4,997 | 4,631 |
Consumer | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 21,472 | |||
Ending balance | 22,852 | 22,852 | ||
Consumer | Consumer | ||||
Allowance for Credit Losses by Portfolio Segment [Roll Forward] | ||||
Beginning balance | 21,938 | 17,192 | 21,472 | 16,546 |
Charge-offs | (2,974) | (2,337) | (6,116) | (4,222) |
Recoveries | 619 | 386 | 973 | 728 |
Net charge-offs | (2,355) | (1,951) | (5,143) | (3,494) |
Provision for loan losses and other | 3,269 | 3,415 | 6,523 | 5,604 |
Ending balance | $ 22,852 | $ 18,656 | $ 22,852 | $ 18,656 |
Past Due Loans, Allowance For_5
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS - Loans and Related Allowance for Credit Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans, Individually Evaluated for Impairment | $ 47,458 | $ 42,509 | |||||
Loans, Collectively Evaluated for Impairment | 12,298,123 | 11,290,406 | |||||
Loans | 12,519,604 | 11,446,783 | |||||
Allowance for Credit Losses Individually Evaluated for Impairment | 2,067 | 4,709 | |||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 101,552 | 94,578 | |||||
Total Allowance for Credit Losses | 106,929 | $ 104,779 | 103,419 | $ 97,691 | $ 95,854 | $ 96,729 | |
PCI | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
PCI | [1] | 174,023 | 113,868 | ||||
Total Allowance for Credit Losses | 3,310 | 4,132 | |||||
Commercial and industrial | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans, Individually Evaluated for Impairment | 23,549 | 32,415 | |||||
Loans, Collectively Evaluated for Impairment | 4,878,817 | 4,514,349 | |||||
Loans | 4,954,990 | 4,551,221 | |||||
Allowance for Credit Losses Individually Evaluated for Impairment | 2,000 | 3,961 | |||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 64,024 | 58,947 | |||||
Total Allowance for Credit Losses | 66,364 | 64,685 | 63,276 | 60,043 | 57,200 | 55,791 | |
Commercial and industrial | PCI | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
PCI | 52,624 | 4,457 | |||||
Total Allowance for Credit Losses | 340 | 368 | |||||
Commercial real estate | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans, Individually Evaluated for Impairment | 23,909 | 10,094 | |||||
Loans, Collectively Evaluated for Impairment | 4,704,273 | 4,496,277 | |||||
Loans | 4,826,012 | 4,596,249 | |||||
Allowance for Credit Losses Individually Evaluated for Impairment | 67 | 748 | |||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 14,572 | 14,337 | |||||
Total Allowance for Credit Losses | 16,513 | 17,471 | |||||
Commercial real estate | PCI | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
PCI | 97,830 | 89,878 | |||||
Total Allowance for Credit Losses | 1,874 | 2,386 | |||||
Total corporate loans | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans, Individually Evaluated for Impairment | 47,458 | 42,509 | |||||
Loans, Collectively Evaluated for Impairment | 9,583,090 | 9,010,626 | |||||
Loans | 9,781,002 | 9,147,470 | |||||
Allowance for Credit Losses Individually Evaluated for Impairment | 2,067 | 4,709 | |||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 78,596 | 73,284 | |||||
Total Allowance for Credit Losses | 82,877 | 80,747 | |||||
Total corporate loans | PCI | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
PCI | 150,454 | 94,335 | |||||
Total Allowance for Credit Losses | 2,214 | 2,754 | |||||
Consumer loans | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans, Individually Evaluated for Impairment | 0 | 0 | |||||
Loans, Collectively Evaluated for Impairment | 2,715,033 | 2,279,780 | |||||
Loans | 2,738,602 | 2,299,313 | |||||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | |||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 21,756 | 20,094 | |||||
Total Allowance for Credit Losses | 22,852 | 21,472 | |||||
Consumer loans | PCI | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
PCI | 23,569 | 19,533 | |||||
Total Allowance for Credit Losses | 1,096 | 1,378 | |||||
Office, retail, and industrial | Commercial real estate | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans, Individually Evaluated for Impairment | 15,291 | 5,057 | |||||
Loans, Collectively Evaluated for Impairment | 1,907,604 | 1,799,304 | |||||
Loans | 1,936,577 | 1,820,917 | |||||
Allowance for Credit Losses Individually Evaluated for Impairment | 67 | 748 | |||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 6,473 | 5,984 | |||||
Total Allowance for Credit Losses | 7,495 | 7,679 | 7,900 | 9,062 | 10,607 | 10,996 | |
Office, retail, and industrial | Commercial real estate | PCI | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
PCI | 13,682 | 16,556 | |||||
Total Allowance for Credit Losses | 955 | 1,168 | |||||
Multi-family | Commercial real estate | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans, Individually Evaluated for Impairment | 5,161 | 3,492 | |||||
Loans, Collectively Evaluated for Impairment | 775,648 | 747,030 | |||||
Loans | 787,155 | 764,185 | |||||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | |||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 2,064 | 2,154 | |||||
Total Allowance for Credit Losses | 2,159 | 2,216 | 2,464 | 2,175 | 2,592 | 2,534 | |
Multi-family | Commercial real estate | PCI | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
PCI | 6,346 | 13,663 | |||||
Total Allowance for Credit Losses | 95 | 310 | |||||
Construction | Commercial real estate | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans, Individually Evaluated for Impairment | 123 | 0 | |||||
Loans, Collectively Evaluated for Impairment | 645,235 | 644,499 | |||||
Loans | 654,607 | 649,337 | |||||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | |||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 1,777 | 2,019 | |||||
Total Allowance for Credit Losses | 1,862 | 2,131 | 2,173 | 2,124 | 1,972 | 3,481 | |
Construction | Commercial real estate | PCI | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
PCI | 9,249 | 4,838 | |||||
Total Allowance for Credit Losses | 85 | 154 | |||||
Other commercial real estate | Commercial real estate | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans, Individually Evaluated for Impairment | 3,334 | 1,545 | |||||
Loans, Collectively Evaluated for Impairment | 1,375,786 | 1,305,444 | |||||
Loans | 1,447,673 | 1,361,810 | |||||
Allowance for Credit Losses Individually Evaluated for Impairment | 0 | 0 | |||||
Allowance for Credit Losses Collectively Evaluated for Impairment | 4,258 | 4,180 | |||||
Total Allowance for Credit Losses | 4,997 | 4,930 | 4,934 | 4,631 | 5,291 | 6,381 | |
Other commercial real estate | Commercial real estate | PCI | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
PCI | 68,553 | 54,821 | |||||
Total Allowance for Credit Losses | 739 | 754 | |||||
Reserve for unfunded commitments | |||||||
Financing Receivable, Allowance for Credit Loss [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 | 1,200 | 1,200 | |||||
Total Allowance for Credit Losses | 1,200 | $ 1,200 | 1,200 | $ 1,000 | $ 1,000 | $ 1,000 | |
Reserve for unfunded commitments | PCI | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
PCI | 0 | 0 | |||||
Total Allowance for Credit Losses | $ 0 | $ 0 | |||||
[1] | Included in loans in the Consolidated Statements of Financial Condition. |
Past Due Loans, Allowance For_6
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS - Impaired Loans Individually Evaluated by Class (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with No Specific Reserve | $ 37,687 | $ 15,766 |
Recorded Investment in Loans with a Specific Reserve | 9,771 | 26,743 |
Unpaid Principal Balance | 72,730 | 64,344 |
Specific Reserve | 2,067 | 4,709 |
Commercial and industrial | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with No Specific Reserve | 13,578 | 7,550 |
Recorded Investment in Loans with a Specific Reserve | 3,503 | 23,349 |
Unpaid Principal Balance | 37,779 | 49,102 |
Specific Reserve | 670 | 3,960 |
Commercial and industrial | Agricultural | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with No Specific Reserve | 1,156 | 1,318 |
Recorded Investment in Loans with a Specific Reserve | 5,312 | 198 |
Unpaid Principal Balance | 9,565 | 3,997 |
Specific Reserve | 1,330 | 1 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with No Specific Reserve | 22,953 | 6,898 |
Recorded Investment in Loans with a Specific Reserve | 956 | 3,196 |
Unpaid Principal Balance | 25,386 | 11,245 |
Specific Reserve | 67 | 748 |
Commercial real estate | Office, retail, and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with No Specific Reserve | 14,335 | 1,861 |
Recorded Investment in Loans with a Specific Reserve | 956 | 3,196 |
Unpaid Principal Balance | 16,274 | 6,141 |
Specific Reserve | 67 | 748 |
Commercial real estate | Multi-family | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with No Specific Reserve | 5,161 | 3,492 |
Recorded Investment in Loans with a Specific Reserve | 0 | 0 |
Unpaid Principal Balance | 5,497 | 3,492 |
Specific Reserve | 0 | 0 |
Commercial real estate | Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with No Specific Reserve | 123 | 0 |
Recorded Investment in Loans with a Specific Reserve | 0 | 0 |
Unpaid Principal Balance | 123 | 0 |
Specific Reserve | 0 | 0 |
Commercial real estate | Other commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in Loans with No Specific Reserve | 3,334 | 1,545 |
Recorded Investment in Loans with a Specific Reserve | 0 | 0 |
Unpaid Principal Balance | 3,492 | 1,612 |
Specific Reserve | $ 0 | $ 0 |
Past Due Loans, Allowance For_7
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS - Impaired Loans Individually Evaluated by Class (Continued) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | $ 51,053 | $ 49,542 | $ 48,203 | $ 50,232 | |
Interest Income Recognized | [1] | 48 | 804 | 83 | 997 |
Commercial and industrial | Commercial and industrial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | 24,530 | 31,787 | 26,653 | 34,097 | |
Interest Income Recognized | [1] | 10 | 14 | 26 | 36 |
Commercial and industrial | Agricultural | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | 4,292 | 3,386 | 3,366 | 2,257 | |
Interest Income Recognized | [1] | 11 | 25 | 11 | 25 |
Commercial real estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | 22,231 | 14,369 | 18,184 | 13,878 | |
Interest Income Recognized | [1] | 27 | 765 | 46 | 936 |
Commercial real estate | Office, retail, and industrial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | 15,567 | 9,509 | 12,063 | 9,942 | |
Interest Income Recognized | [1] | 1 | 656 | 4 | 768 |
Commercial real estate | Multi-family | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | 4,169 | 2,166 | 3,943 | 1,651 | |
Interest Income Recognized | [1] | 0 | 48 | 0 | 55 |
Commercial real estate | Construction | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | 62 | 0 | 41 | 0 | |
Interest Income Recognized | [1] | 0 | 0 | 0 | 0 |
Commercial real estate | Other commercial real estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | 2,433 | 2,694 | 2,137 | 2,285 | |
Interest Income Recognized | [1] | $ 26 | $ 61 | $ 42 | $ 113 |
[1] | Recorded using the cash basis of accounting. |
Past Due Loans, Allowance For_8
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS - Credit Quality Indicators by Class (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Accruing TDRs | $ 1,441 | $ 1,866 | |
Special Mention and Substandard Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Accruing TDRs | 236,000 | 630 | |
Total corporate loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | 9,781,002 | 9,147,470 | |
Total corporate loans | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | 9,317,176 | 8,758,739 | |
Total corporate loans | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 191,174 | 194,180 |
Total corporate loans | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 218,800 | 146,865 |
Total corporate loans | Non-accrual | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [4] | 53,852 | 47,686 |
Commercial and industrial | Commercial and industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | 4,524,401 | 4,120,293 | |
Accruing TDRs | 236 | 246 | |
Commercial and industrial | Commercial and industrial | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | 4,326,163 | 3,952,066 | |
Commercial and industrial | Commercial and industrial | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 74,221 | 74,878 |
Commercial and industrial | Commercial and industrial | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 104,208 | 59,842 |
Commercial and industrial | Commercial and industrial | Non-accrual | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [4] | 19,809 | 33,507 |
Commercial and industrial | Agricultural | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | 430,589 | 430,928 | |
Accruing TDRs | 0 | 0 | |
Commercial and industrial | Agricultural | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | 383,404 | 407,542 | |
Commercial and industrial | Agricultural | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 23,834 | 10,070 |
Commercial and industrial | Agricultural | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 16,639 | 11,752 |
Commercial and industrial | Agricultural | Non-accrual | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [4] | 6,712 | 1,564 |
Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | 4,826,012 | 4,596,249 | |
Accruing TDRs | 343 | 738 | |
Commercial real estate | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | 4,607,609 | 4,399,131 | |
Commercial real estate | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 93,119 | 109,232 |
Commercial real estate | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 97,953 | 75,271 |
Commercial real estate | Non-accrual | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [4] | 27,331 | 12,615 |
Commercial real estate | Office, retail, and industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | 1,936,577 | 1,820,917 | |
Accruing TDRs | 0 | 0 | |
Commercial real estate | Office, retail, and industrial | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | 1,833,410 | 1,735,426 | |
Commercial real estate | Office, retail, and industrial | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 41,134 | 35,853 |
Commercial real estate | Office, retail, and industrial | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 44,158 | 43,128 |
Commercial real estate | Office, retail, and industrial | Non-accrual | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [4] | 17,875 | 6,510 |
Commercial real estate | Multi-family | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | 787,155 | 764,185 | |
Accruing TDRs | 167 | 557 | |
Commercial real estate | Multi-family | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | 765,375 | 745,131 | |
Commercial real estate | Multi-family | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 10,385 | 9,273 |
Commercial real estate | Multi-family | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 6,073 | 6,674 |
Commercial real estate | Multi-family | Non-accrual | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [4] | 5,322 | 3,107 |
Commercial real estate | Construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | 654,607 | 649,337 | |
Accruing TDRs | 0 | 0 | |
Commercial real estate | Construction | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | 632,922 | 624,446 | |
Commercial real estate | Construction | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 12,591 | 16,370 |
Commercial real estate | Construction | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 8,942 | 8,377 |
Commercial real estate | Construction | Non-accrual | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [4] | 152 | 144 |
Commercial real estate | Other commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | 1,447,673 | 1,361,810 | |
Accruing TDRs | 176 | 181 | |
Commercial real estate | Other commercial real estate | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | 1,375,902 | 1,294,128 | |
Commercial real estate | Other commercial real estate | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [1],[2] | 29,009 | 47,736 |
Commercial real estate | Other commercial real estate | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [2],[3] | 38,780 | 17,092 |
Commercial real estate | Other commercial real estate | Non-accrual | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Credit Quality Indicators by Class | [4] | $ 3,982 | $ 2,854 |
[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 TDR s of $236,000 as of June 30, 2019 and $630,000 as of December 31, 2018 . | ||
[3] | Loans categorized as substandard exhibit well-defined weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well-secured, and collection of principal and interest is expected within a reasonable time. | ||
[4] | Loans categorized as non-accrual exhibit well-defined weaknesses that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected. |
Past Due Loans, Allowance For_9
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS - Credit Quality Indicators by Class (Continued) (Details) - Consumer loans - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
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 | $ 2,738,602 | $ 2,299,313 |
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 | 2,728,977 | 2,290,064 |
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 | 9,625 | 9,249 |
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 | 874,686 | 851,607 |
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 | 868,847 | 846,214 |
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 | 5,839 | 5,393 |
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 | 1,391,814 | 1,017,181 |
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 | 1,388,028 | 1,013,325 |
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 | 3,786 | 3,856 |
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 | 472,102 | 430,525 |
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 | 472,102 | 430,525 |
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 | $ 0 |
Past Due Loans, Allowance Fo_10
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS - TDRs By Class (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | ||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing TDRs | $ 1,441,000 | $ 1,866,000 | ||
Non-accrual | [1] | 7,841,000 | 6,612,000 | |
Total | 9,282,000 | 8,478,000 | $ 9,998,000 | |
Specific reserves related to TDRs | 670,000 | 0 | ||
Commercial and industrial | Commercial and industrial | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing TDRs | 236,000 | 246,000 | ||
Non-accrual | [1] | 6,928,000 | 5,994,000 | |
Total | 7,164,000 | 6,240,000 | ||
Commercial and industrial | Agricultural | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing TDRs | 0 | 0 | ||
Non-accrual | [1] | 0 | 0 | |
Total | 0 | 0 | ||
Commercial real estate | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing TDRs | 343,000 | 738,000 | ||
Non-accrual | [1] | 383,000 | 0 | |
Total | 726,000 | 738,000 | ||
Commercial real estate | Office, retail, and industrial | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing TDRs | 0 | 0 | ||
Non-accrual | [1] | 383,000 | 0 | |
Total | 383,000 | 0 | ||
Commercial real estate | Multi-family | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing TDRs | 167,000 | 557,000 | ||
Non-accrual | [1] | 0 | 0 | |
Total | 167,000 | 557,000 | ||
Commercial real estate | Construction | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing TDRs | 0 | 0 | ||
Non-accrual | [1] | 0 | 0 | |
Total | 0 | 0 | ||
Commercial real estate | Other commercial real estate | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing TDRs | 176,000 | 181,000 | ||
Non-accrual | [1] | 0 | 0 | |
Total | 176,000 | 181,000 | ||
Total corporate loans | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing TDRs | 579,000 | 984,000 | ||
Non-accrual | [1] | 7,311,000 | 5,994,000 | |
Total | 7,890,000 | 6,978,000 | ||
Consumer loans | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing TDRs | 862,000 | 882,000 | ||
Non-accrual | [1] | 530,000 | 618,000 | |
Total | 1,392,000 | 1,500,000 | ||
Consumer loans | Home equity | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing TDRs | 109,000 | 113,000 | ||
Non-accrual | [1] | 257,000 | 327,000 | |
Total | 366,000 | 440,000 | ||
Consumer loans | 1-4 family mortgages | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing TDRs | 753,000 | 769,000 | ||
Non-accrual | [1] | 273,000 | 291,000 | |
Total | 1,026,000 | 1,060,000 | ||
Consumer loans | Installment | ||||
Past Due Loans, Allowance For Credit Losses, and Impaired Loans (Details) - TDRs By Class [Line Items] | ||||
Accruing TDRs | 0 | 0 | ||
Non-accrual | [1] | 0 | 0 | |
Total | $ 0 | $ 0 | ||
[1] | These TDR s are included in non-accrual loans in the preceding tables. |
Past Due Loans, Allowance Fo_11
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS - TDR Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Troubled Debt Restructuring Activity Rollforward [Roll Forward] | |||||
Beginning balance | $ 8,478 | ||||
Ending balance | $ 9,282 | $ 9,998 | 9,282 | $ 9,998 | |
Material commitments to lend additional funds to borrowers with TDRs | 1,900 | 1,900 | $ 3,800 | ||
Accruing | |||||
Troubled Debt Restructuring Activity Rollforward [Roll Forward] | |||||
Beginning balance | 1,844 | 1,778 | 1,866 | 1,796 | |
Additions | 0 | 0 | 12 | 0 | |
Net payments | (20) | (18) | (54) | (36) | |
Net transfers to non-accrual | (383) | 0 | (383) | 0 | |
Ending balance | 1,441 | 1,760 | 1,441 | 1,760 | |
Non-accrual | |||||
Troubled Debt Restructuring Activity Rollforward [Roll Forward] | |||||
Beginning balance | 9,375 | 20,466 | 6,612 | 24,533 | |
Additions | 0 | 0 | 0 | 355 | |
Net payments | (1,447) | (9,865) | 1,474 | (12,978) | |
Charge-offs | (470) | (2,363) | (628) | (3,672) | |
Net transfers from accruing | 383 | 0 | 383 | 0 | |
Ending balance | $ 7,841 | $ 8,238 | $ 7,841 | $ 8,238 |
Lease Obligations - Narrative (
Lease Obligations - Narrative (Details) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($)branch | Jun. 30, 2019USD ($) | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | [2] | ||
Leases [Abstract] | |||||||
Operating lease, weighted average remaining lease term | 11 years 7 days | ||||||
Operating lease, weighted average discount rate (as a percent) | 3.34% | ||||||
Operating lease, right-of-use asset | $ 139,900 | $ 143,600 | |||||
Lessee, Lease, Description [Line Items] | |||||||
Sale and leaseback transaction, number of branches sold | branch | 55 | ||||||
Sale and leaseback transaction, pre-tax gain | $ 65,500 | $ 88,000 | |||||
Sale and leaseback transaction related expenses | $ 5,500 | ||||||
Adjustments to apply recent accounting pronouncements | 47,257 | [1] | $ 0 | ||||
Retained Earnings | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Adjustments to apply recent accounting pronouncements | $ 47,257 | [1] | $ 6,689 | ||||
[1] | As a result of accounting guidance adopted in the first quarter of 2019, the remaining deferred gain on a sale-leaseback transaction was recognized as a cumulative-effect adjustment to retained earnings as of January 1, 2019. For further discussion of this guidance, see Note 2 , " Recent Accounting Pronouncements ." | ||||||
[2] | As a result of accounting guidance adopted in the first quarter of 2018, certain reclassifications were made from accumulated other comprehensive loss to retained earnings as of January 1, 2018. |
Lease Obligations - Schedule of
Lease Obligations - Schedule of Lease Liability (Details) $ in Thousands | Jun. 30, 2019USD ($) | |
Leases [Abstract] | ||
2019 | $ 8,124 | |
2020 | 17,409 | |
2021 | 17,277 | |
2022 | 17,284 | |
2023 | 17,419 | |
2024 and thereafter | 115,479 | |
Total minimum lease payments | 192,992 | |
Discount | (32,973) | [1] |
Lease liability | $ 160,019 | [2] |
[1] | Represents the net present value adjustment related to minimum lease payments. | |
[2] | Included in accrued interest payable and other liabilities in the Consolidated Statements of Financial Condition. |
Lease Obligations - Schedule _2
Lease Obligations - Schedule of Net Operating Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Leases [Abstract] | |||||
Lease expense charged to operations | $ 4,426 | $ 4,946 | $ 8,486 | $ 9,943 | |
Accretion of operating lease intangible | [1] | (210) | (505) | ||
Accretion of deferred gain on sale-leaseback transaction | [1] | (1,463) | (2,926) | ||
Rental income from premises leased to others | [1] | (165) | (108) | (322) | (262) |
Net operating lease expense | $ 4,261 | $ 3,165 | $ 8,164 | $ 6,250 | |
[1] | Included as reductions to net occupancy and equipment expense in the Condensed Consolidated Statements of Income. |
Material Transactions Affecti_2
Material Transactions Affecting Stockholders' Equity (Details) - USD ($) | Mar. 19, 2019 | Jun. 30, 2019 |
Equity [Abstract] | ||
Stock repurchase program, authorized amount | $ 180,000,000 | |
Stock repurchase program, term | 1 year | |
Common stock repurchased (in shares) | 1,041,700 | |
Total cost of common stock repurchased | $ 21,200,000 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Earnings Per Share [Abstract] | |||||
Net income | $ 47,014 | $ 29,600 | $ 93,072 | $ 63,110 | |
Net income applicable to non-vested restricted shares | (389) | (240) | (792) | (551) | |
Net income applicable to common shares | $ 46,625 | $ 29,360 | $ 92,280 | $ 62,559 | |
Weighted-average common shares outstanding: | |||||
Weighted-average common shares outstanding (basic) (in Shares) | 108,467 | 102,159 | 107,126 | 102,041 | |
Dilutive effect of common stock equivalents (in Shares) | 0 | 0 | 0 | 8 | |
Weighted-average diluted common shares outstanding (in Shares) | 108,467 | 102,159 | 107,126 | 102,049 | |
Basic EPS (in dollars per share) | $ 0.43 | $ 0.29 | $ 0.86 | $ 0.61 | |
Diluted EPS (in dollars per share) | $ 0.43 | $ 0.29 | $ 0.86 | $ 0.61 | |
Anti-dilutive shares not included in the computation of diluted EPS (in Shares) | [1] | 0 | 0 | 0 | 54 |
[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. The final outstanding stock options were exercised during the first quarter of 2018. |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | May 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||
Amount of variable rate loans hedged using interest rate swaps | $ 1,000,000 | $ 1,000,000 | ||||
Amount hedged of borrowed funds using forward starting interest rate swaps | 1,000,000 | 1,000,000 | $ 685,000 | |||
Amount to be hedged of borrowed funds using forward starting interest rate swaps | $ 330,000 | $ 330,000 | ||||
Weighted-average interest rate to be paid | 2.56% | 2.56% | ||||
Interest rate cash flow hedge loss to be reclassified during next 12 months, net | $ (698) | $ (698) | ||||
Capital market products income | $ 2,154 | $ 2,819 | $ 3,433 | $ 4,377 | ||
Portion of fair value of outstanding interest rate swaps covered by collateral agreements (percent) | 100.00% | 100.00% | 100.00% |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Cash Flow Hedges (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gross notional amount outstanding | $ 2,030,000 | $ 2,280,000 | |
Derivative asset fair value in other assets | [1] | 2,008 | 6,889 |
Derivative liability fair value in other liabilities | [1] | $ (1,819) | $ (11,328) |
Weighted-average interest rate received | 2.13% | 2.12% | |
Weighted-average interest rate paid | 2.22% | 2.20% | |
Weighted-average maturity (in years) | 1 year 3 months 7 days | 1 year 6 months 10 days | |
[1] | Certain cash flow hedges are transacted through a clearinghouse ("centrally cleared") and their change in fair value is settled by the counterparties to the transaction, which results in no fair value. |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Other Derivative Instruments (Details) - Other Derivative Instruments - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Gross notional amount outstanding | $ 3,289,412 | $ 3,085,226 | |
Derivative asset fair value in other assets | [1] | 57,897 | 25,168 |
Derivative liability fair value in other liabilities | [1] | (21,372) | (17,533) |
Fair value of derivative | [2] | $ 21,494 | $ 18,013 |
[1] | Certain other derivative instruments are centrally cleared and their change in fair value is settled by the counterparties to the transaction, which results in no fair value. | ||
[2] | This amount represents the fair value if credit risk related contingent features were triggered. |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Cash Flow Hedge Accounting on AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gains (losses) recognized in other comprehensive income | $ 2,441 | $ 3,899 | ||
Interest Income | Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gains (losses) recognized in other comprehensive income | 5,944 | $ 3,577 | 9,297 | $ 10,573 |
Reclassification of gains (losses) included in net income | 1,355 | 376 | 2,748 | 647 |
Interest Expense | Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gains (losses) recognized in other comprehensive income | (7,816) | (2,860) | (11,996) | (10,043) |
Reclassification of gains (losses) included in net income | $ (1,924) | $ (503) | $ (3,948) | $ (1,109) |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Effect Of Derivatives On Interest Income (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) on derivative, net | $ (569) | $ (127) | $ (1,200) | $ (462) |
Interest Income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) on derivative, net | 1,355 | 376 | 2,748 | 647 |
Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) on derivative, net | $ (1,924) | $ (503) | $ (3,948) | $ (1,109) |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Offsetting Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Assets | |||
Gross amounts recognized | $ 59,905 | $ 32,057 | |
Less: amounts offset in the Consolidated Statements of Financial Condition | 0 | 0 | |
Net amount presented in the Consolidated Statements of Financial Condition | [1] | 59,905 | 32,057 |
Offsetting derivative positions | (4,088) | (11,678) | |
Cash collateral pledged | 0 | (9,060) | |
Net credit exposure | 55,817 | 11,319 | |
Liabilities | |||
Gross amounts recognized | 23,191 | 28,861 | |
Less: amounts offset in the Consolidated Statements of Financial Condition | 0 | 0 | |
Net amount presented in the Consolidated Statements of Financial Condition | [1] | 23,191 | 28,861 |
Offsetting derivative positions | (4,088) | (11,678) | |
Cash collateral pledged | (12,618) | (3,506) | |
Net credit exposure | $ 6,485 | $ 13,677 | |
[1] | Included in other assets or other liabilities in the Consolidated Statements of Financial Condition. |
Commitments, Guarantees, and _3
Commitments, Guarantees, and Contingent Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Other Commitments [Line Items] | |||
Letters of credit | $ 114,304 | $ 112,728 | |
Commitments to extend credit | |||
Other Commitments [Line Items] | |||
Commercial, industrial, and agricultural | 1,699,246 | 1,729,286 | |
Commercial real estate | 283,183 | 296,882 | |
Home equity | 583,198 | 570,553 | |
Other commitments | [1] | 256,356 | 244,917 |
Total commitments to extend credit | $ 2,821,983 | $ 2,841,638 | |
[1] | Other commitments includes installment and overdraft protection program commitments. |
Fair Value - Recurring Fair Val
Fair Value - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | [1] | Mar. 31, 2018 | Dec. 31, 2017 | ||
Assets | |||||||||
Equity securities | $ 40,690 | $ 30,806 | |||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 2,793,316 | 2,272,009 | |||||||
Mortgage servicing rights (MSRs) | 5,831 | [1] | $ 6,228 | 6,730 | $ 6,671 | $ 6,468 | $ 5,894 | ||
U.S. treasury securities | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 43,087 | 37,767 | |||||||
U.S. agency securities | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 187,238 | 142,563 | |||||||
CMOs | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 1,549,728 | 1,315,209 | |||||||
MBSs | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 670,407 | 466,934 | |||||||
Municipal securities | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 238,342 | 227,187 | |||||||
Corporate debt securities | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 104,514 | 82,349 | |||||||
Recurring | Level 1 | |||||||||
Assets | |||||||||
Equity securities | 22,613 | 19,658 | |||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 43,087 | 37,767 | |||||||
Mortgage servicing rights (MSRs) | [2] | 0 | 0 | ||||||
Derivative assets | [2] | 0 | 0 | ||||||
Liabilities | |||||||||
Derivative liabilities | [3] | 0 | 0 | ||||||
Recurring | Level 1 | U.S. treasury securities | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 43,087 | 37,767 | |||||||
Recurring | Level 1 | U.S. agency securities | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 0 | 0 | |||||||
Recurring | Level 1 | CMOs | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 0 | 0 | |||||||
Recurring | Level 1 | MBSs | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 0 | 0 | |||||||
Recurring | Level 1 | Municipal securities | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 0 | 0 | |||||||
Recurring | Level 1 | Corporate debt securities | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 0 | 0 | |||||||
Recurring | Level 2 | |||||||||
Assets | |||||||||
Equity securities | 13,040 | 11,148 | |||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 2,750,229 | 2,234,242 | |||||||
Mortgage servicing rights (MSRs) | [2] | 0 | 0 | ||||||
Derivative assets | [2] | 59,905 | 32,057 | ||||||
Liabilities | |||||||||
Derivative liabilities | [3] | 23,191 | 28,861 | ||||||
Recurring | Level 2 | U.S. treasury securities | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 0 | 0 | |||||||
Recurring | Level 2 | U.S. agency securities | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 187,238 | 142,563 | |||||||
Recurring | Level 2 | CMOs | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 1,549,728 | 1,315,209 | |||||||
Recurring | Level 2 | MBSs | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 670,407 | 466,934 | |||||||
Recurring | Level 2 | Municipal securities | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 238,342 | 227,187 | |||||||
Recurring | Level 2 | Corporate debt securities | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 104,514 | 82,349 | |||||||
Recurring | Level 3 | |||||||||
Assets | |||||||||
Equity securities | 0 | 0 | |||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 0 | 0 | |||||||
Mortgage servicing rights (MSRs) | [2] | 5,831 | 6,730 | ||||||
Derivative assets | [2] | 0 | 0 | ||||||
Liabilities | |||||||||
Derivative liabilities | [3] | 0 | 0 | ||||||
Recurring | Level 3 | U.S. treasury securities | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 0 | 0 | |||||||
Recurring | Level 3 | U.S. agency securities | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 0 | 0 | |||||||
Recurring | Level 3 | CMOs | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 0 | 0 | |||||||
Recurring | Level 3 | MBSs | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 0 | 0 | |||||||
Recurring | Level 3 | Municipal securities | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | 0 | 0 | |||||||
Recurring | Level 3 | Corporate debt securities | |||||||||
Securities Available-for-Sale | |||||||||
Securities available-for-sale, at fair value | $ 0 | $ 0 | |||||||
[1] | Included in other assets in the Consolidated Statements of Financial Condition. | ||||||||
[2] | Included in other assets in the Consolidated Statements of Financial Condition. | ||||||||
[3] | Included in other liabilities in the Consolidated Statements of Financial Condition. |
Fair Value - Significant Unobse
Fair Value - Significant Unobservable Inputs Used In the Valuation of MSRs (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Total amount of loans being serviced for the benefit of others at the end of the period | $ 641.6 | $ 627.3 |
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 | 6.80% | 6.50% |
Maturity (months) | 18 months | 20 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 | 10.50% | 13.50% |
Maturity (months) | 89 months | 104 months |
Discount rate | 12.00% | 12.00% |
Fair Value - Carrying Value of
Fair Value - Carrying Value of Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Beginning balance | $ 6,228 | $ 6,468 | $ 6,730 | $ 5,894 | |
New MSRs | 204 | 393 | 457 | 569 | |
Total gains (losses) included in earnings: | |||||
Changes in valuation inputs and assumptions | [1] | (389) | 2 | (989) | 562 |
Other changes in fair value | [1],[2] | (212) | (192) | (367) | (354) |
Ending balance | [3] | 5,831 | 6,671 | 5,831 | 6,671 |
Contractually servicing fees earned | [1] | $ 390 | $ 369 | $ 771 | $ 747 |
[1] | Included in mortgage banking income in the Condensed Consolidated Statements of Income and related to assets held as of June 30, 2019 and 2018 . | ||||
[2] | Primarily represents changes in expected future cash flows due to payoffs and paydowns. | ||||
[3] | Included in other assets in the Consolidated Statements of Financial Condition. |
Fair Value - Assets Measured At
Fair Value - Assets Measured At Fair Value On A Non-Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
OREO | $ 15,313 | $ 12,821 | |
Nonrecurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring 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 |
Nonrecurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring 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 |
Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral-dependent impaired loans | [1] | 21,089 | 24,565 |
OREO | [2] | 1,820 | 6,012 |
Loans held-for-sale | [3] | 16,948 | 3,478 |
Assets held-for-sale | [4] | $ 3,655 | $ 3,722 |
[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 - Narrative (Details
Fair Value - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value (Details) [Line Items] | ||
Equity securities, at fair value | $ 40,690 | $ 30,806 |
Minimum | ||
Fair Value (Details) [Line Items] | ||
Appraisal adjustment (percent) | 0.00% | |
Maximum | ||
Fair Value (Details) [Line Items] | ||
Appraisal adjustment (percent) | 15.00% | |
Recurring | Level 2 | ||
Fair Value (Details) [Line Items] | ||
Equity securities, at fair value | $ 13,040 | 11,148 |
Community Development Investments | Recurring | Level 2 | ||
Fair Value (Details) [Line Items] | ||
Equity securities, at fair value | $ 5,000 |
Fair Value - Fair Value Measure
Fair Value - Fair Value Measurements of Other Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 199,684 | $ 211,189 |
Interest-bearing deposits in other banks | 126,966 | 78,069 |
Securities held-to-maturity | 23,277 | 10,176 |
FHLB and FRB stock | 109,466 | 80,302 |
Loans | 12,413,875 | 11,344,564 |
Investment in BOLI | 297,118 | 296,733 |
Liabilities | ||
Deposits | 13,188,588 | 12,084,112 |
Borrowed funds | 1,407,378 | 906,079 |
Senior and subordinated debt | 233,538 | 203,808 |
Carrying Amount | Level 1 | ||
Assets | ||
Cash and due from banks | 199,684 | 211,189 |
Carrying Amount | Level 2 | ||
Assets | ||
Interest-bearing deposits in other banks | 126,966 | 78,069 |
Securities held-to-maturity | 23,277 | 10,176 |
FHLB and FRB stock | 109,466 | 80,302 |
Liabilities | ||
Deposits | 13,188,588 | 12,084,112 |
Borrowed funds | 1,407,378 | 906,079 |
Senior and subordinated debt | 233,538 | 203,808 |
Accrued interest payable | 13,091 | 10,005 |
Carrying Amount | Level 3 | ||
Assets | ||
Loans | 12,415,371 | 11,346,668 |
Investment in BOLI | 297,118 | 296,733 |
Accrued interest receivable | 59,765 | 54,847 |
Fair Value | Level 1 | ||
Assets | ||
Cash and due from banks | 199,684 | 211,189 |
Fair Value | Level 2 | ||
Assets | ||
Interest-bearing deposits in other banks | 126,966 | 78,069 |
Securities held-to-maturity | 22,405 | 9,871 |
FHLB and FRB stock | 109,466 | 80,302 |
Liabilities | ||
Deposits | 13,185,124 | 12,064,604 |
Borrowed funds | 1,407,378 | 906,079 |
Senior and subordinated debt | 272,085 | 211,207 |
Accrued interest payable | 13,091 | 10,005 |
Fair Value | Level 3 | ||
Assets | ||
Loans | 12,273,439 | 11,052,040 |
Investment in BOLI | 297,118 | 296,733 |
Accrued interest receivable | $ 59,765 | $ 54,847 |