Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
Document Transition Report | false |
Entity File Number | 1-15817 |
Entity Incorporation, State or Country Code | IN |
Entity Tax Identification Number | 35-1539838 |
Entity Address, Address Line One | One Main Street |
Entity Address, City or Town | Evansville, |
Entity Address, State or Province | IN |
Entity Address, Postal Zip Code | 47708 |
City Area Code | (800) |
Local Phone Number | 731-2265 |
Title of 12(b) Security | Common Stock, No Par Value |
Trading Symbol | ONB |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding (in shares) | 165,109,000 |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Entity Registrant Name | Old National Bancorp /IN/ |
Entity Central Index Key | 0000707179 |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and due from banks | $ 203,533 | $ 234,766 | |
Money market and other interest-earning investments | 139,644 | 41,571 | |
Total cash and cash equivalents | 343,177 | 276,337 | |
Equity securities | 6,870 | 6,842 | |
Investment securities - available-for-sale, at fair value: | |||
Total investment securities - available-for-sale | 5,360,025 | 5,385,091 | |
Federal Home Loan Bank/Federal Reserve Bank stock, at cost | 174,113 | 164,099 | |
Loans held for sale, at fair value | 54,209 | 46,898 | |
Loans: | |||
Total loans | 12,384,612 | 12,117,524 | |
Allowance for loan losses | [1] | (106,380) | (54,619) |
Net loans | 12,278,232 | 12,062,905 | |
Premises and equipment, net | 462,364 | 490,925 | |
Operating lease right-of-use assets | 86,819 | 95,477 | |
Accrued interest receivable | 77,810 | 85,123 | |
Goodwill | 1,036,994 | 1,036,994 | |
Other intangible assets | 56,329 | 60,105 | |
Company-owned life insurance | 450,148 | 448,967 | |
Net deferred tax assets | 17,576 | 29,705 | |
Loan servicing rights | 24,132 | 25,368 | |
Other assets | 312,343 | 196,831 | |
Total assets | 20,741,141 | 20,411,667 | |
Deposits: | |||
Noninterest-bearing demand | 4,058,559 | 4,042,286 | |
Interest-bearing: | |||
Checking and NOW | 4,105,006 | 4,149,639 | |
Savings | 2,853,305 | 2,845,423 | |
Money market | 1,746,798 | 1,833,819 | |
Time | 1,541,694 | 1,682,230 | |
Total deposits | 14,305,362 | 14,553,397 | |
Federal funds purchased and interbank borrowings | 560,770 | 350,414 | |
Securities sold under agreements to repurchase | 318,067 | 327,782 | |
Federal Home Loan Bank advances | 2,130,263 | 1,822,847 | |
Other borrowings | 236,114 | 243,685 | |
Operating lease liabilities | 95,830 | 99,500 | |
Accrued expenses and other liabilities | 271,300 | 161,589 | |
Total liabilities | 17,917,706 | 17,559,214 | |
Shareholders' Equity | |||
Preferred stock, 2,000 shares authorized, no shares issued or outstanding | 0 | 0 | |
Common stock, $1.00 per share stated value, 300,000 shares authorized, 165,109 and 169,616 shares issued and outstanding, respectively | 165,109 | 169,616 | |
Capital surplus | 1,870,260 | 1,944,445 | |
Retained earnings | 649,909 | 682,185 | |
Accumulated other comprehensive income (loss), net of tax | 138,157 | 56,207 | |
Total shareholders' equity | 2,823,435 | 2,852,453 | |
Total liabilities and shareholders' equity | 20,741,141 | 20,411,667 | |
U.S. Treasury | |||
Investment securities - available-for-sale, at fair value: | |||
Total investment securities - available-for-sale | 11,733 | 17,682 | |
U.S. government-sponsored entities and agencies | |||
Investment securities - available-for-sale, at fair value: | |||
Total investment securities - available-for-sale | 519,171 | 592,984 | |
Mortgage-backed securities | |||
Investment securities - available-for-sale, at fair value: | |||
Total investment securities - available-for-sale | 3,210,000 | 3,183,861 | |
States and political subdivisions | |||
Investment securities - available-for-sale, at fair value: | |||
Total investment securities - available-for-sale | 1,302,395 | 1,275,643 | |
Other securities | |||
Investment securities - available-for-sale, at fair value: | |||
Total investment securities - available-for-sale | 316,726 | 314,921 | |
Commercial Loan | |||
Loans: | |||
Total loans | 3,046,579 | 2,890,296 | |
Commercial Real Estate Loan | |||
Loans: | |||
Total loans | 5,283,464 | 5,166,792 | |
Consumer Loan | |||
Loans: | |||
Total loans | 1,726,718 | 1,726,147 | |
Residential Real Estate Loan | |||
Loans: | |||
Total loans | $ 2,327,851 | $ 2,334,289 | |
[1] | Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, stated value (in dollars per share) | $ 1 | $ 1 |
Authorized and unissued common shares reserved for issuance (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 165,109,000 | 169,616,000 |
Common stock, shares outstanding (in shares) | 165,109,000 | 169,616,000 |
Consolidated Statements of Inco
Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Loans including fees: | |||
Taxable | $ 128,727 | $ 138,972 | |
Nontaxable | 3,625 | 4,223 | |
Investment securities: | |||
Taxable | 27,356 | 28,037 | |
Nontaxable | 7,942 | 7,408 | |
Money market and other interest-earning investments | 349 | 278 | |
Total interest income | 167,999 | 178,918 | |
Interest Expense | |||
Deposits | 12,298 | 16,444 | |
Federal funds purchased and interbank borrowings | 1,240 | 1,918 | |
Securities sold under agreements to repurchase | 384 | 662 | |
Federal Home Loan Bank advances | 7,768 | 9,931 | |
Other borrowings | 2,538 | 2,915 | |
Total interest expense | 24,228 | 31,870 | |
Net interest income | 143,771 | 147,048 | |
Provision for loan losses | [1] | 16,950 | 1,043 |
Net interest income after provision for loan losses | 126,821 | 146,005 | |
Noninterest Income | |||
Wealth management fees | 8,884 | 8,535 | |
Service charges on deposit accounts | 10,077 | 10,826 | |
Debit card and ATM fees | 4,998 | 5,503 | |
Mortgage banking revenue | 11,119 | 5,011 | |
Investment product fees | 5,874 | 5,271 | |
Capital markets income | 4,328 | 2,517 | |
Company-owned life insurance | 3,080 | 3,188 | |
Debt securities gains (losses), net | 5,174 | (103) | |
Other income | 3,968 | 5,668 | |
Total noninterest income | 57,502 | 46,416 | |
Noninterest Expense | |||
Salaries and employee benefits | 79,173 | 71,183 | |
Occupancy | 15,133 | 14,578 | |
Equipment | 5,305 | 4,474 | |
Marketing | 3,097 | 3,723 | |
Data processing | 9,467 | 9,341 | |
Communication | 2,798 | 3,054 | |
Professional fees | 4,293 | 2,910 | |
Loan expenses | 1,771 | 1,912 | |
FDIC assessment | 1,609 | 2,087 | |
Amortization of intangibles | 3,776 | 4,472 | |
Amortization of tax credit investments | 5,515 | 260 | |
Other expense | 26,807 | 5,047 | |
Total noninterest expense | 158,744 | 123,041 | |
Income before income taxes | 25,579 | 69,380 | |
Income tax expense | 2,939 | 13,104 | |
Net income | $ 22,640 | $ 56,276 | |
Net income per common share - basic (in dollars per share) | $ 0.13 | $ 0.32 | |
Net income per common share - diluted (in dollars per share) | $ 0.13 | $ 0.32 | |
Weighted average number of common shares outstanding - basic (in shares) | 167,748 | 174,734 | |
Weighted average number of common shares outstanding - diluted (in shares) | 168,404 | 175,368 | |
Dividends per common share (in dollars per share) | $ 0.14 | $ 0.13 | |
[1] | Net income per common share - basic |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 22,640 | $ 56,276 |
Change in debt securities available-for-sale: | ||
Unrealized holding gains (losses) for the period | 103,954 | 62,265 |
Reclassification adjustment for securities (gains) losses realized in income | (5,174) | 103 |
Income tax effect | (22,411) | (14,578) |
Unrealized gains (losses) on available-for-sale debt securities | 76,369 | 47,790 |
Change in securities held-to-maturity: | ||
Amortization of unrealized losses on securities transferred from available-for-sale | 0 | 457 |
Income tax effect | 0 | (106) |
Changes from securities held-to-maturity | 0 | 351 |
Cash flow hedges: | ||
Net unrealized derivative gains (losses) on cash flow hedges | 7,803 | (392) |
Reclassification adjustment for (gains) losses realized in net income | (431) | (385) |
Income tax effect | (1,811) | 191 |
Changes from cash flow hedges | 5,561 | (586) |
Defined benefit pension plans: | ||
Amortization of net loss recognized in income | 27 | 20 |
Income tax effect | (7) | (5) |
Changes from defined benefit pension plans | 20 | 15 |
Other comprehensive income (loss), net of tax | 81,950 | 47,570 |
Comprehensive income | $ 104,590 | $ 103,846 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of change in accounting principles | $ 6,322 | $ 6,322 | $ 0 | ||
Adjusted balance | 2,695,892 | $ 175,141 | $ 2,031,695 | 534,006 | (44,950) |
Beginning balance at Dec. 31, 2018 | 2,689,570 | 175,141 | 2,031,695 | 527,684 | (44,950) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 56,276 | 56,276 | |||
Other comprehensive income (loss) | 47,570 | 47,570 | |||
Dividends - common stock | (22,812) | (22,812) | |||
Common stock issued | 130 | 9 | 121 | ||
Common stock repurchased | (27,297) | (1,655) | (25,642) | ||
Share-based compensation expense | 1,800 | 1,800 | |||
Stock activity under incentive compensation plans | 313 | 484 | (12) | (159) | |
Ending balance at Mar. 31, 2019 | 2,751,872 | 173,979 | 2,007,962 | 567,311 | 2,620 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of change in accounting principles | (31,150) | (31,150) | |||
Adjusted balance | 2,821,303 | 169,616 | 1,944,445 | 651,035 | 56,207 |
Beginning balance at Dec. 31, 2019 | 2,852,453 | 169,616 | 1,944,445 | 682,185 | 56,207 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 22,640 | 22,640 | |||
Other comprehensive income (loss) | 81,950 | 81,950 | |||
Dividends - common stock | (23,535) | (23,535) | |||
Common stock issued | 151 | 9 | 142 | ||
Common stock repurchased | (81,822) | (5,076) | (76,746) | ||
Share-based compensation expense | 2,748 | 2,748 | |||
Stock activity under incentive compensation plans | 0 | 560 | (329) | (231) | |
Ending balance at Mar. 31, 2020 | $ 2,823,435 | $ 165,109 | $ 1,870,260 | $ 649,909 | $ 138,157 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends per common share (in dollars per share) | $ 0.14 | $ 0.13 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Cash Flows From Operating Activities | |||
Net income | $ 22,640 | $ 56,276 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation | 8,594 | 6,443 | |
Amortization of other intangible assets | 3,776 | 4,472 | |
Amortization of tax credit investments | 5,515 | 260 | |
Net premium amortization on investment securities | 5,146 | 3,154 | |
Accretion income related to acquired loans | (6,649) | (8,668) | |
Share-based compensation expense | 2,748 | 1,800 | |
Excess tax (benefit) expense on share-based compensation | (818) | (1,013) | |
Provision for loan losses | [1] | 16,950 | 1,043 |
Debt securities (gains) losses, net | (5,174) | 103 | |
Net (gains) losses on sales of loans and other assets | 11,826 | (1,564) | |
Increase in cash surrender value of company-owned life insurance | (3,080) | (3,188) | |
Residential real estate loans originated for sale | (223,961) | (94,632) | |
Proceeds from sales of residential real estate loans | 219,626 | 97,010 | |
(Increase) decrease in interest receivable | 7,313 | 3,184 | |
(Increase) decrease in other assets | (87,826) | 13,618 | |
Increase (decrease) in accrued expenses and other liabilities | 2,242 | (45,288) | |
Net cash flows provided by (used in) operating activities | (21,132) | 33,010 | |
Cash Flows From Investing Activities | |||
Purchases of investment securities available-for-sale | (446,819) | (530,677) | |
Purchases of Federal Home Loan Bank/Federal Reserve Bank stock | (10,025) | (14,439) | |
Proceeds from maturities, prepayments, and calls of investment securities available-for-sale | 436,742 | 145,356 | |
Proceeds from sales of investment securities available-for-sale | 236,410 | 8,681 | |
Proceeds from maturities, prepayments, and calls of investment securities held-to-maturity | 0 | 21,689 | |
Proceeds from sales of Federal Home Loan Bank/Federal Reserve Bank stock | 11 | 19 | |
Proceeds from sales of equity securities | 133 | 130 | |
Loan originations and payments, net | (262,497) | 182,638 | |
Proceeds from company-owned life insurance death benefits | 1,899 | 2,861 | |
Proceeds from sales of premises and equipment and other assets | 0 | 84 | |
Purchases of premises and equipment and other assets | (7,938) | (11,684) | |
Net cash flows provided by (used in) investing activities | (52,084) | (195,342) | |
Net increase (decrease) in: | |||
Deposits | (248,035) | 79,321 | |
Federal funds purchased and interbank borrowings | 210,356 | 54,895 | |
Securities sold under agreements to repurchase | (9,715) | (19,814) | |
Other borrowings | (7,339) | 3,650 | |
Payments for maturities of Federal Home Loan Bank advances | (200,005) | (325,070) | |
Proceeds from Federal Home Loan Bank advances | 500,000 | 425,000 | |
Cash dividends paid on common stock | (23,535) | (22,812) | |
Common stock repurchased | (81,822) | (27,297) | |
Proceeds from exercise of stock options | 0 | 280 | |
Common stock issued | 151 | 130 | |
Net cash flows provided by (used in) financing activities | 140,056 | 168,283 | |
Net increase (decrease) in cash and cash equivalents | 66,840 | 5,951 | |
Cash and cash equivalents at beginning of period | 276,337 | 317,165 | |
Cash and cash equivalents at end of period | 343,177 | 323,116 | |
Supplemental cash flow information: | |||
Total interest paid | 26,387 | 33,779 | |
Total taxes paid (net of refunds) | 1,212 | 150 | |
Investment securities purchased but not settled | 102,459 | 10,912 | |
Operating lease right-of-use assets obtained in exchange for lease obligations | (310) | ||
Operating lease right-of-use assets obtained in exchange for lease obligations | 117,739 | ||
Finance lease right-of-use assets obtained in exchange for lease obligations | $ 0 | $ 7,542 | |
[1] | Net income per common share - basic |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include the accounts of Old National Bancorp and its wholly-owned affiliates (hereinafter collectively referred to as “Old National”) and have been prepared in conformity with accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. Such principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosures of contingent assets and liabilities at the date of the financial statements and amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the consolidated financial statements contain all the normal and recurring adjustments necessary for a fair statement of the financial position of Old National as of March 31, 2020 and December 31, 2019, and the results of its operations for the three months ended March 31, 2020 and 2019. Interim results do not necessarily represent annual results. These financial statements should be read in conjunction with Old National’s Annual Report for the year ended December 31, 2019. All significant intercompany transactions and balances have been eliminated. Certain prior year amounts have been reclassified to conform to the current presentation. Such reclassifications had no effect on prior period net income or shareholders’ equity and were insignificant amounts. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NET INCOME PER SHARE Basic and diluted net income per share are calculated using the two-class method. Net income is divided by the weighted-average number of common shares outstanding during the period. Adjustments to the weighted average number of common shares outstanding are made only when such adjustments will dilute net income per common share. Net income is then divided by the weighted-average number of common shares and common share equivalents during the period. The following table reconciles basic and diluted net income per share: Three Months Ended (dollars and shares in thousands, except per share data) 2020 2019 Basic Net Income Per Share Net income $ 22,640 $ 56,276 Weighted average common shares outstanding 167,748 174,734 Basic Net Income Per Share $ 0.13 $ 0.32 Diluted Net Income Per Share Net income $ 22,640 $ 56,276 Weighted average common shares outstanding 167,748 174,734 Effect of dilutive securities: Restricted stock 616 582 Stock options (1) 40 52 Weighted average shares outstanding 168,404 175,368 Diluted Net Income Per Share $ 0.13 $ 0.32 (1) Options to purchase 14 thousand shares outstanding at March 31, 2020 and 2019 were not included in the computation of net income per diluted share for the three months ended March 31, 2020 and 2019 because the exercise price of these options was greater than the average market price of the common shares and, therefore, the effect would be antidilutive. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATIONOperating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Old National Bank, Old National’s bank subsidiary, is the only significant subsidiary upon which management makes decisions regarding how to allocate resources and assess performance. Each of the branches of Old National Bank provide a group of similar community banking services, including such products and services as commercial, real estate and consumer loans, time deposits, checking and savings accounts, cash management, brokerage, trust, and investment advisory services. The individual bank branches located throughout our Midwest footprint have similar operating and economic characteristics. While the chief decision maker monitors the revenue streams of the various products, services, and regional locations, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the community banking services and branch locations are considered by management to be aggregated into one reportable operating segment, community banking. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements include the accounts of Old National Bancorp and its wholly-owned affiliates (hereinafter collectively referred to as “Old National”) and have been prepared in conformity with accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. Such principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosures of contingent assets and liabilities at the date of the financial statements and amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the consolidated financial statements contain all the normal and recurring adjustments necessary for a fair statement of the financial position of Old National as of March 31, 2020 and December 31, 2019, and the results of its operations for the three months ended March 31, 2020 and 2019. Interim results do not necessarily represent annual results. These financial statements should be read in conjunction with Old National’s Annual Report for the year ended December 31, 2019. All significant intercompany transactions and balances have been eliminated. Certain prior year amounts have been reclassified to conform to the current presentation. Such reclassifications had no effect on prior period net income or shareholders’ equity and were insignificant amounts. |
Recent Accounting Pronouncements | Accounting Guidance Adopted in 2020 FASB ASC 326 – In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and all related subsequent amendments thereto (“CECL”). The main objective of this amendment is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments within its scope, including loans held for investment purposes and other commitments to extend credit held by a reporting entity at each reporting date. The amendment requires the measurement of all expected credit losses for the in-scope financial assets at the date of origination or acquisition, and at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to enhance their credit loss estimates. The amendment requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The current expected credit loss measurement will be used to estimate the allowance for credit losses (“ACL”) over the life of the financial assets. The amendments in this update became effective for annual periods and interim periods within those annual periods beginning after December 15, 2019. As previously disclosed, Old National formed a cross-functional committee to oversee the adoption of the ASU at the effective date. A working group was also formed to develop a project plan focused on understanding the ASU, researching issues, identifying data needs for modeling inputs, technology requirements, modeling considerations, and ensuring overarching governance was achieved for each objective and milestone. The working group identified seven distinct loan portfolios for which a model to estimate credit losses has been developed. For all seven loan portfolios, the data sets have been identified, populated, and internally validated. Old National has completed data and model validation testing. During the last half of 2019, the project plan targeted parallel processing of our existing allowance for loan losses model compared to the CECL model, as well as model sensitivity analysis, determination of qualitative adjustments, supporting analytics, and execution of the governance and approval process. Internal controls related to the CECL process were finalized prior to adoption on January 1, 2020. The CECL modeling measurements for estimating the current expected life-time credit losses for loans and debt securities includes the following major items: • Initial loss forecast – using a forecast period of one year for all allowance portfolio segments and off-balance-sheet credit exposures, using forward-looking economic scenarios of expected losses. • Historical loss forecast – for a period incorporating the remaining contractual life, adjusted for prepayments, and the changes in various economic variables during representative historical and recessionary periods. • Reversion period – using two years, which links the initial loss forecast to the historical loss forecast based on economic conditions at the measurement date. • Discounted cash flow aggregator – using the items above to estimate the life-time credit losses for all portfolios and losses for loans modified as a TDR. Old National adopted CECL on January 1, 2020 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for the reporting periods after January 1, 2020 are presented under Topic 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. As of that date, Old National increased the allowance for credit losses for loans by $41.3 million and increased the allowance for credit losses for unfunded loan commitments by $4.5 million, since the ASU covers credit losses over the expected life of a loan as well as considering future changes in macroeconomic conditions. The increase related to the acquired loan portfolio totaled $27.1 million. Under the previously applicable accounting guidance, any remaining unamortized loan discount on an individual loan could be used to offset a charge-off for that loan, so the allowance for loan losses needed for the acquired loans was reduced by the remaining loan discounts. The new ASU removes the ability to offset a charge-off against the remaining loan discount and requires an allowance for credit losses to be recognized in addition to the loan discount. The impact of adopting the ASU, and at each subsequent reporting period, is highly dependent on credit quality, macroeconomic forecasts and conditions, composition of our loans and available-for-sale securities portfolio, along with other management judgements. As of January 1, 2020, Old National recorded a cumulative-effect adjustment of $31.2 million to decrease retained earnings. Old National did not record an allowance for credit losses on its available-for-sale debt securities under the newly codified available-for-sale debt security impairment model, as the majority of these securities are government agency-backed securities for which the risk of loss is minimal. We adopted CECL using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”) that were previously classified as purchased credit impaired and accounted for under ASC 310-30. In accordance with the standard, we did not reassess whether PCI assets met the definition of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $4.5 million to the allowance for credit losses for loans. The remaining noncredit discount in the amount of $11.8 million (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2020. The loan categories used to monitor and analyze interest income and yields are different than the portfolio segments used to determine the allowance for credit losses for loans. The allowance for credit losses was calculated by pooling loans of similar credit risk characteristics and credit monitoring procedures. The four loan portfolios are classified into seven segments of loans - commercial, commercial real estate, business banking credit center ("BBCC"), residential real estate, indirect, direct, and home equity. The commercial and commercial real estate loan categories shown on the balance sheet include the same pool of loans as the commercial, commercial real estate, and BBCC portfolio segments. The consumer loan category shown on the balance sheet is comprised of the same loans in the indirect, direct, and home equity portfolio segments. The composition of loans by portfolio segment as of December 31, 2019 follows: (dollars in thousands) December 31, 2019 Segment December 31, 2019 Loans: Commercial $ 2,890,296 $ (75,142) $ 2,815,154 Commercial real estate 5,166,792 (277,539) 4,889,253 BBCC N/A 352,681 352,681 Residential real estate 2,334,289 — 2,334,289 Consumer 1,726,147 (1,726,147) N/A Indirect N/A 935,584 935,584 Direct N/A 228,524 228,524 Home equity N/A 562,039 562,039 Total $ 12,117,524 $ — $ 12,117,524 Allowance: Commercial $ (22,585) $ 1,226 $ (21,359) Commercial real estate (21,588) 1,053 (20,535) BBCC N/A (2,279) (2,279) Residential real estate (2,299) — (2,299) Consumer (8,147) 8,147 N/A Indirect N/A (5,319) (5,319) Direct N/A (1,863) (1,863) Home equity N/A (965) (965) Total $ (54,619) $ — $ (54,619) The following table illustrates the impact of adoption of the ASU: (dollars in thousands) December 31, 2019 After Reclassifications Impact of January 1, 2020 Assets: Loans, net of unearned income: Commercial $ 2,815,154 $ 2,679 $ 2,817,833 Commercial real estate 4,889,253 1,637 4,890,890 BBCC 352,681 33 352,714 Residential real estate 2,334,289 105 2,334,394 Indirect 935,584 10 935,594 Direct 228,524 2 228,526 Home equity 562,039 12 562,051 Total 12,117,524 4,478 12,122,002 Allowance: Commercial (21,359) (7,150) (28,509) Commercial real estate (20,535) (25,548) (46,083) BBCC (2,279) (3,702) (5,981) Residential real estate (2,299) (6,986) (9,285) Indirect (5,319) 1,669 (3,650) Direct (1,863) 1,059 (804) Home equity (965) (689) (1,654) Total allowance for credit losses on loans (54,619) (41,347) (95,966) Net loans $ 12,062,905 $ (36,869) $ 12,026,036 Net deferred tax assets $ 29,705 $ 10,268 $ 39,973 Liabilities: Allowance for credit losses on unfunded loan commitments $ 2,656 $ 4,549 $ 7,205 Shareholders' equity: Retained earnings $ 682,185 $ (31,150) $ 651,035 In December 2018, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. In March 2020, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC announced an interim final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The interim final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). Old National is adopting the capital transition relief over the permissible five-year period. FASB ASC 350 – In January 2017, the FASB issued ASU No. 2017-04, Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, the income tax effects of tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments should be applied on a prospective basis. The nature of and reason for the change in accounting principle should be disclosed upon transition. The amendments in this update became effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and did not have a material impact on the financial statements. FASB ASC 820 – In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement . The updated guidance improves the disclosure requirements on fair value measurements. The ASU removes certain disclosures required by Topic 820 related to transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; the valuation processes for Level 3 fair value measurements; and for nonpublic entities, the changes in unrealized gains and losses for the period included in earnings for recurring Level 3 fair value measurements held at the end of the reporting period. The ASU modifies certain disclosures required by Topic 820 related to disclosure of transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities for nonpublic entities; the requirement to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly for investments in certain entities that calculate net asset value; and clarification that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The ASU adds certain disclosure requirements related to changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update became effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019 and did not have a material impact on the financial statements. FASB ASC 350 – In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract . The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this update became effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years and did not have a material impact on the financial statements. FASB ASC 842 – In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements . The amendments in ASU No. 2019-01 align the guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset is acquired and when the lease commences, the definition of fair value in Topic 820, Fair Value Measurement should be applied. ASU No. 2019-01 also requires lessors within the scope of Topic 942, Financial Services—Depository and Lending , to present all “principal payments received under leases” within investing activities. The amendments in this update became effective for annual periods and interim periods within those annual periods beginning after December 15, 2019 and did not have a material impact on the financial statements. FASB ASC 326, 815, and 825 – In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendments related to Topic 326 address accrued interest, transfers between classifications or categories for loans and debt securities, recoveries, vintage disclosures, and contractual extensions and renewal options and became effective for annual periods and interim periods within those annual periods beginning after December 15, 2019. The improvements and clarifications related to Topic 815 address partial-term fair value hedges of interest-rate risk, amortization, and disclosure of fair value hedge basis adjustments and consideration of hedged contractually specified interest rate under the hypothetical method and became effective for the annual reporting period beginning January 1, 2020. The amendments related to Topic 825 contain various improvements to ASU 2016-01, including scope; held-to-maturity debt securities fair value disclosures; and remeasurement of equity securities at historical exchange rates and became effective for fiscal years and interim periods beginning after December 15, 2019. The amendments in this update did not have a material impact on the financial statements. FASB ASC 326 – In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. These amendments provide targeted transition relief allowing entities to irrevocably elect the fair value option, on an instrument-by-instrument basis, for certain financial assets (excluding held-to-maturity debt securities) previously measured at amortized cost. In November 2019, the FASB issued 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , to make improvements to the credit losses standard. Most significantly, the standard clarifies guidance around how to report expected recoveries for PCD assets. “Expected recoveries” describes a situation in which an organization recognizes a full or partial writeoff of the amortized cost basis of a financial asset, but then later determines that the amount written off, or a portion of that amount, will in fact be recovered. This ASU permits organizations to record expected recoveries on PCD assets. In addition to other narrow technical improvements, the ASU also reinforces existing guidance that prohibits organizations from recognizing negative allowances for available-for-sale debt securities. The amendments in these updates became effective for annual periods and interim periods within those annual periods beginning after December 15, 2019 and did not have a material impact on the consolidated financial statements. FASB ASC 718 – In November 2019, the FASB issued ASU No. 2019-08, Compensation – Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements—Share-Based Consideration Payable to a Customer. This ASU requires companies to measure and classify (on the balance sheet) share-based payments to customers by applying the guidance in Topic 718, Compensation—Stock Compensation . As a result, the amount recorded as a reduction in revenue would be measured based on the grant-date fair value of the share-based payment. The amendments in this update become effective for annual periods and interim periods within those annual periods beginning after December 15, 2019 and did not have a material impact on the consolidated financial statements. FASB ASC 326 and 842 – In February 2020, the FASB issued ASU No. 2020-02, Financial Instruments—Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842). This ASU inserts a paragraph to address the November 2019 issuance of SEC Staff Accounting Bulletin ("SAB") 119, Accounting for Loan Losses by Registrants Engaged in Lending Activities Subject to FASB ASC Topic 326 . The SAB updates existing staff guidance on developing a systematic methodology for estimating credit losses, and it explains the documentation the staff typically would expect from registrants in support of estimates of current expected credit losses ("CECL") for lending activities, when material. The amendments in this update became effective upon issuance and did not have a material impact on the consolidated financial statements. Guidance on Non-TDR Loan Modifications due to COVID-19 On March 22, 2020, a statement was issued by our banking regulators and titled the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of COVID-19. Additionally, Section 4013 of the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") that passed on March 27, 2020 further provides that a qualified loan modification is exempt by law from classification as a TDR as defined by GAAP, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak declared by the President of the United States under the National Emergencies Act (50 U.S.C. 1601 et seq.) terminates. Accordingly, we are offering short-term modifications made in response to COVID-19 to borrowers who are current and otherwise not past due. These include short-term, 180 days or less, modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. The modifications completed in the three months ended March 31, 2020 were immaterial. Accounting Guidance Issued But Not Yet Adopted FASB ASC 715 – In August 2018, the FASB issued ASU No. 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans . The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in this update become effective for fiscal years ending after December 15, 2020 and will not have a material impact on the consolidated financial statements. FASB ASC 740 – In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU removes specific exceptions to the general principles in Topic 740 in GAAP. It eliminates the need for an organization to analyze whether the following apply in a given period: (1) exception to the incremental approach for intraperiod tax allocation; (2) exceptions to accounting for basis differences when there are ownership changes in foreign investments; and (3) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: (1) franchise taxes that are partially based on income; (2) transactions with a government that result in a step up in the tax basis of goodwill; (3) separate financial statements of legal entities that are not subject to tax; and (4) enacted changes in tax laws in interim periods. The amendments in this update become effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. FASB ASC 321, 323, and 815 – In January 2020, the FASB issued ASU No. 2020-01, Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815 (a Consensus of the Emerging Issues Task Force). The ASU clarifies the interaction between ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities and the ASU on equity method investments. ASU 2016-01 provides companies with an alternative to measure certain equity securities without a readily determinable fair value at cost, minus impairment, if any, unless an observable transaction for an identical or similar security occurs. ASU 2020-01 clarifies that for purposes of applying the Topic 321 measurement alternative, an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting under Topic 323, immediately before applying or upon discontinuing the equity method. In addition, the new ASU provides direction that a company should not consider whether the underlying securities would be accounted for under the equity method or the fair value option when it is determining the accounting for certain forward contracts and purchased options, upon either settlement or exercise. The amendments in this update become effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted, and the amendments are to be applied prospectively. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. Codification Improvements to Financial Instruments – In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments . This ASU was issued to clarify and improve various financial instruments Topics. The amendments include the following improvements: • Issue 1 – Clarifies that all entities are required to provide fair value option disclosures. • Issue 2 – Clarifies the applicability of the portfolio exception in measuring fair value for nonfinancial items accounted for as derivatives. • Issue 3 – Clarifies that disclosure requirements in Topic 320 apply to disclosure requirements in Topic 942 for depository and lending institutions. • Issue 4 – Added cross-reference of line-of-credit or revolving-debt arrangements guidance to guidance in accounting for fees between debtor and creditor and third-party costs directly related to exchanges or modifications of debt instruments. • Issue 5 – Clarifies that fair value measurement disclosure requirements do not apply to entities using the net asset value per share practical expedient. • Issue 6 – Aligns the contractual term to measure expected credit losses for a net investment in a lease under the Credit Loss Standard (Topic 326) with the lease term determined under the Leases Standard (Topic 842). • Issue 7 – Clarifies that when an entity regains control of financial assets sold, an allowance for credit losses should be recorded in accordance with Topic 326. For Issue 1, Issue 2, Issue 4, and Issue 5, the amendments are effective upon issuance and did not have a material impact on the consolidated financial statements. For Issue 3, the amendments to ASU 2016-01 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years and did not have a material impact on the consolidated financial statements. For Issues 6 and 7, the amendments to ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years and did not have a material impact on the consolidated financial statements. FASB ASC 848 – In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from the LIBOR or other interbank offered rate on financial reporting. To help with the transition to new reference rates, the ASU provides optional expedients and exceptions for applying GAAP to affected contract modifications and hedge accounting relationships. The main provisions include: • A change in a contract’s reference interest rate would be accounted for as a continuation of that contract rather than as the creation of a new one for contracts, including loans, debt, leases, and other arrangements, that meet specific criteria. • When updating its hedging strategies in response to reference rate reform, an entity would be allowed to preserve its hedge accounting. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued. Because the guidance is meant to help entities through the transition period, it will be in effect for a limited time and will not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, for which an entity has elected certain optional expedients that are retained through the end of the hedging relationship. The amendments in this ASU are effective March 12, 2020 through December 31, 2022. Old National is evaluating the impact of adopting the new guidance on the consolidated financial statements on an ongoing basis with no material expected impact at this time. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Table Reconciling Basic and Diluted Net Income Per Share | The following table reconciles basic and diluted net income per share: Three Months Ended (dollars and shares in thousands, except per share data) 2020 2019 Basic Net Income Per Share Net income $ 22,640 $ 56,276 Weighted average common shares outstanding 167,748 174,734 Basic Net Income Per Share $ 0.13 $ 0.32 Diluted Net Income Per Share Net income $ 22,640 $ 56,276 Weighted average common shares outstanding 167,748 174,734 Effect of dilutive securities: Restricted stock 616 582 Stock options (1) 40 52 Weighted average shares outstanding 168,404 175,368 Diluted Net Income Per Share $ 0.13 $ 0.32 (1) Options to purchase 14 thousand shares outstanding at March 31, 2020 and 2019 were not included in the computation of net income per diluted share for the three months ended March 31, 2020 and 2019 because the exercise price of these options was greater than the average market price of the common shares and, therefore, the effect would be antidilutive. |
Net Income Per Share - Summary
Net Income Per Share - Summary of Table Reconciling Basic and Diluted Net Income Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic Net Income Per Share | ||
Net income | $ 22,640 | $ 56,276 |
Weighted average common shares outstanding (in shares) | 167,748 | 174,734 |
Effect of dilutive securities: | ||
Restricted stock (in shares) | 616 | 582 |
Stock options (in shares) | 40 | 52 |
Basic Net Income Per Share (in dollars per share) | $ 0.13 | $ 0.32 |
Earnings Per Share, Diluted [Abstract] | ||
Net income | $ 22,640 | $ 56,276 |
Weighted average common shares outstanding (in shares) | 167,748 | 174,734 |
Weighted average shares outstanding (in shares) | 168,404 | 175,368 |
Diluted Net Income Per Share (in dollars per share) | $ 0.13 | $ 0.32 |
Stock Options | ||
Summary Of Computation Of Basic And Diluted Earnings Per Share [Line Items] | ||
Antidilutive securities not included in the computation of net income per diluted share | 14 | 14 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020segment | |
Community Banking Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable operating segment | 1 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2020 FASB ASC 326 – In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and all related subsequent amendments thereto (“CECL”). The main objective of this amendment is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments within its scope, including loans held for investment purposes and other commitments to extend credit held by a reporting entity at each reporting date. The amendment requires the measurement of all expected credit losses for the in-scope financial assets at the date of origination or acquisition, and at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to enhance their credit loss estimates. The amendment requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The current expected credit loss measurement will be used to estimate the allowance for credit losses (“ACL”) over the life of the financial assets. The amendments in this update became effective for annual periods and interim periods within those annual periods beginning after December 15, 2019. As previously disclosed, Old National formed a cross-functional committee to oversee the adoption of the ASU at the effective date. A working group was also formed to develop a project plan focused on understanding the ASU, researching issues, identifying data needs for modeling inputs, technology requirements, modeling considerations, and ensuring overarching governance was achieved for each objective and milestone. The working group identified seven distinct loan portfolios for which a model to estimate credit losses has been developed. For all seven loan portfolios, the data sets have been identified, populated, and internally validated. Old National has completed data and model validation testing. During the last half of 2019, the project plan targeted parallel processing of our existing allowance for loan losses model compared to the CECL model, as well as model sensitivity analysis, determination of qualitative adjustments, supporting analytics, and execution of the governance and approval process. Internal controls related to the CECL process were finalized prior to adoption on January 1, 2020. The CECL modeling measurements for estimating the current expected life-time credit losses for loans and debt securities includes the following major items: • Initial loss forecast – using a forecast period of one year for all allowance portfolio segments and off-balance-sheet credit exposures, using forward-looking economic scenarios of expected losses. • Historical loss forecast – for a period incorporating the remaining contractual life, adjusted for prepayments, and the changes in various economic variables during representative historical and recessionary periods. • Reversion period – using two years, which links the initial loss forecast to the historical loss forecast based on economic conditions at the measurement date. • Discounted cash flow aggregator – using the items above to estimate the life-time credit losses for all portfolios and losses for loans modified as a TDR. Old National adopted CECL on January 1, 2020 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for the reporting periods after January 1, 2020 are presented under Topic 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. As of that date, Old National increased the allowance for credit losses for loans by $41.3 million and increased the allowance for credit losses for unfunded loan commitments by $4.5 million, since the ASU covers credit losses over the expected life of a loan as well as considering future changes in macroeconomic conditions. The increase related to the acquired loan portfolio totaled $27.1 million. Under the previously applicable accounting guidance, any remaining unamortized loan discount on an individual loan could be used to offset a charge-off for that loan, so the allowance for loan losses needed for the acquired loans was reduced by the remaining loan discounts. The new ASU removes the ability to offset a charge-off against the remaining loan discount and requires an allowance for credit losses to be recognized in addition to the loan discount. The impact of adopting the ASU, and at each subsequent reporting period, is highly dependent on credit quality, macroeconomic forecasts and conditions, composition of our loans and available-for-sale securities portfolio, along with other management judgements. As of January 1, 2020, Old National recorded a cumulative-effect adjustment of $31.2 million to decrease retained earnings. Old National did not record an allowance for credit losses on its available-for-sale debt securities under the newly codified available-for-sale debt security impairment model, as the majority of these securities are government agency-backed securities for which the risk of loss is minimal. We adopted CECL using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”) that were previously classified as purchased credit impaired and accounted for under ASC 310-30. In accordance with the standard, we did not reassess whether PCI assets met the definition of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $4.5 million to the allowance for credit losses for loans. The remaining noncredit discount in the amount of $11.8 million (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2020. The loan categories used to monitor and analyze interest income and yields are different than the portfolio segments used to determine the allowance for credit losses for loans. The allowance for credit losses was calculated by pooling loans of similar credit risk characteristics and credit monitoring procedures. The four loan portfolios are classified into seven segments of loans - commercial, commercial real estate, business banking credit center ("BBCC"), residential real estate, indirect, direct, and home equity. The commercial and commercial real estate loan categories shown on the balance sheet include the same pool of loans as the commercial, commercial real estate, and BBCC portfolio segments. The consumer loan category shown on the balance sheet is comprised of the same loans in the indirect, direct, and home equity portfolio segments. The composition of loans by portfolio segment as of December 31, 2019 follows: (dollars in thousands) December 31, 2019 Segment December 31, 2019 Loans: Commercial $ 2,890,296 $ (75,142) $ 2,815,154 Commercial real estate 5,166,792 (277,539) 4,889,253 BBCC N/A 352,681 352,681 Residential real estate 2,334,289 — 2,334,289 Consumer 1,726,147 (1,726,147) N/A Indirect N/A 935,584 935,584 Direct N/A 228,524 228,524 Home equity N/A 562,039 562,039 Total $ 12,117,524 $ — $ 12,117,524 Allowance: Commercial $ (22,585) $ 1,226 $ (21,359) Commercial real estate (21,588) 1,053 (20,535) BBCC N/A (2,279) (2,279) Residential real estate (2,299) — (2,299) Consumer (8,147) 8,147 N/A Indirect N/A (5,319) (5,319) Direct N/A (1,863) (1,863) Home equity N/A (965) (965) Total $ (54,619) $ — $ (54,619) The following table illustrates the impact of adoption of the ASU: (dollars in thousands) December 31, 2019 After Reclassifications Impact of January 1, 2020 Assets: Loans, net of unearned income: Commercial $ 2,815,154 $ 2,679 $ 2,817,833 Commercial real estate 4,889,253 1,637 4,890,890 BBCC 352,681 33 352,714 Residential real estate 2,334,289 105 2,334,394 Indirect 935,584 10 935,594 Direct 228,524 2 228,526 Home equity 562,039 12 562,051 Total 12,117,524 4,478 12,122,002 Allowance: Commercial (21,359) (7,150) (28,509) Commercial real estate (20,535) (25,548) (46,083) BBCC (2,279) (3,702) (5,981) Residential real estate (2,299) (6,986) (9,285) Indirect (5,319) 1,669 (3,650) Direct (1,863) 1,059 (804) Home equity (965) (689) (1,654) Total allowance for credit losses on loans (54,619) (41,347) (95,966) Net loans $ 12,062,905 $ (36,869) $ 12,026,036 Net deferred tax assets $ 29,705 $ 10,268 $ 39,973 Liabilities: Allowance for credit losses on unfunded loan commitments $ 2,656 $ 4,549 $ 7,205 Shareholders' equity: Retained earnings $ 682,185 $ (31,150) $ 651,035 In December 2018, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. In March 2020, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC announced an interim final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The interim final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). Old National is adopting the capital transition relief over the permissible five-year period. FASB ASC 350 – In January 2017, the FASB issued ASU No. 2017-04, Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, the income tax effects of tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments should be applied on a prospective basis. The nature of and reason for the change in accounting principle should be disclosed upon transition. The amendments in this update became effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and did not have a material impact on the financial statements. FASB ASC 820 – In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement . The updated guidance improves the disclosure requirements on fair value measurements. The ASU removes certain disclosures required by Topic 820 related to transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; the valuation processes for Level 3 fair value measurements; and for nonpublic entities, the changes in unrealized gains and losses for the period included in earnings for recurring Level 3 fair value measurements held at the end of the reporting period. The ASU modifies certain disclosures required by Topic 820 related to disclosure of transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities for nonpublic entities; the requirement to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly for investments in certain entities that calculate net asset value; and clarification that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The ASU adds certain disclosure requirements related to changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update became effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019 and did not have a material impact on the financial statements. FASB ASC 350 – In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract . The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this update became effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years and did not have a material impact on the financial statements. FASB ASC 842 – In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements . The amendments in ASU No. 2019-01 align the guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset is acquired and when the lease commences, the definition of fair value in Topic 820, Fair Value Measurement should be applied. ASU No. 2019-01 also requires lessors within the scope of Topic 942, Financial Services—Depository and Lending , to present all “principal payments received under leases” within investing activities. The amendments in this update became effective for annual periods and interim periods within those annual periods beginning after December 15, 2019 and did not have a material impact on the financial statements. FASB ASC 326, 815, and 825 – In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendments related to Topic 326 address accrued interest, transfers between classifications or categories for loans and debt securities, recoveries, vintage disclosures, and contractual extensions and renewal options and became effective for annual periods and interim periods within those annual periods beginning after December 15, 2019. The improvements and clarifications related to Topic 815 address partial-term fair value hedges of interest-rate risk, amortization, and disclosure of fair value hedge basis adjustments and consideration of hedged contractually specified interest rate under the hypothetical method and became effective for the annual reporting period beginning January 1, 2020. The amendments related to Topic 825 contain various improvements to ASU 2016-01, including scope; held-to-maturity debt securities fair value disclosures; and remeasurement of equity securities at historical exchange rates and became effective for fiscal years and interim periods beginning after December 15, 2019. The amendments in this update did not have a material impact on the financial statements. FASB ASC 326 – In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. These amendments provide targeted transition relief allowing entities to irrevocably elect the fair value option, on an instrument-by-instrument basis, for certain financial assets (excluding held-to-maturity debt securities) previously measured at amortized cost. In November 2019, the FASB issued 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , to make improvements to the credit losses standard. Most significantly, the standard clarifies guidance around how to report expected recoveries for PCD assets. “Expected recoveries” describes a situation in which an organization recognizes a full or partial writeoff of the amortized cost basis of a financial asset, but then later determines that the amount written off, or a portion of that amount, will in fact be recovered. This ASU permits organizations to record expected recoveries on PCD assets. In addition to other narrow technical improvements, the ASU also reinforces existing guidance that prohibits organizations from recognizing negative allowances for available-for-sale debt securities. The amendments in these updates became effective for annual periods and interim periods within those annual periods beginning after December 15, 2019 and did not have a material impact on the consolidated financial statements. FASB ASC 718 – In November 2019, the FASB issued ASU No. 2019-08, Compensation – Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements—Share-Based Consideration Payable to a Customer. This ASU requires companies to measure and classify (on the balance sheet) share-based payments to customers by applying the guidance in Topic 718, Compensation—Stock Compensation . As a result, the amount recorded as a reduction in revenue would be measured based on the grant-date fair value of the share-based payment. The amendments in this update become effective for annual periods and interim periods within those annual periods beginning after December 15, 2019 and did not have a material impact on the consolidated financial statements. FASB ASC 326 and 842 – In February 2020, the FASB issued ASU No. 2020-02, Financial Instruments—Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842). This ASU inserts a paragraph to address the November 2019 issuance of SEC Staff Accounting Bulletin ("SAB") 119, Accounting for Loan Losses by Registrants Engaged in Lending Activities Subject to FASB ASC Topic 326 . The SAB updates existing staff guidance on developing a systematic methodology for estimating credit losses, and it explains the documentation the staff typically would expect from registrants in support of estimates of current expected credit losses ("CECL") for lending activities, when material. The amendments in this update became effective upon issuance and did not have a material impact on the consolidated financial statements. Guidance on Non-TDR Loan Modifications due to COVID-19 On March 22, 2020, a statement was issued by our banking regulators and titled the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of COVID-19. Additionally, Section 4013 of the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") that passed on March 27, 2020 further provides that a qualified loan modification is exempt by law from classification as a TDR as defined by GAAP, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak declared by the President of the United States under the National Emergencies Act (50 U.S.C. 1601 et seq.) terminates. Accordingly, we are offering short-term modifications made in response to COVID-19 to borrowers who are current and otherwise not past due. These include short-term, 180 days or less, modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. The modifications completed in the three months ended March 31, 2020 were immaterial. Accounting Guidance Issued But Not Yet Adopted FASB ASC 715 – In August 2018, the FASB issued ASU No. 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans . The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in this update become effective for fiscal years ending after December 15, 2020 and will not have a material impact on the consolidated financial statements. FASB ASC 740 – In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU removes specific exceptions to the general principles in Topic 740 in GAAP. It eliminates the need for an organization to analyze whether the following apply in a given period: (1) exception to the incremental approach for intraperiod tax allocation; (2) exceptions to accounting for basis differences when there are ownership changes in foreign investments; and (3) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: (1) franchise taxes that are partially based on income; (2) transactions with a government that result in a step up in the tax basis of goodwill; (3) separate financial statements of legal entities that are not subject to tax; and (4) enacted changes in tax laws in interim periods. The amendments in this update become effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. FASB ASC 321, 323, and 815 – In January 2020, the FASB issued ASU No. 2020-01, Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815 (a Consensus of the Emerging Issues Task Force). The ASU clarifies the interaction between ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities and the ASU on equity method investments. ASU 2016-01 provides companies with an alternative to measure certain equity securities without a readily determinable fair value at cost, minus impairment, if any, unless an observable transaction for an identical or similar security occurs. ASU 2020-01 clarifies that for purposes of applying the Topic 321 measurement alternative, an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting under Topic 323, immediately before applying or upon discontinuing the equity method. In addition, the new ASU provides direction that a company should not consider whether the underlying securities would be accounted for under the equity method or the fair value option when it is determining the accounting for certain forward contracts and purchased options, upon either settlement or exercise. The amendments in this update become effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted, and the amendments are to be applied prospectively. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. Codification Improvements to Financial Instruments – In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments . This ASU was issued to clarify and improve various financial instruments Topics. The amendments include the following improvements: • Issue 1 – Clarifies that all entities are required to provide fair value option disclosures. • Issue 2 – Clarifies the applicability of the portfolio exception in measuring fair value for nonfinancial items accounted for as derivatives. • Issue 3 – Clarifies that disclosure requirements in Topic 320 apply to disclosure requirements in Topic 942 for depository and lending institutions. • Issue 4 – Added cross-reference of line-of-credit or revolving-debt arrangements guidance to guidance in accounting for fees between debtor and creditor and third-party costs directly related to exchanges or modifications of debt instruments. • Issue 5 – Clarifies that fair value measurement disclosure requirements do not apply to entities using the net asset value per share practical expedient. • Issue 6 – Aligns the contractual term to measure expected credit losses for a net investment in a lease under the Credit Loss Standard (Topic 326) with the lease term determined under the Leases Standard (Topic 842). • Issue 7 – Clarifies that when an entity regains control of financial assets sold, an allowance for credit losses should be recorded in accordance with Topic 326. For Issue 1, Issue 2, Issue 4, and Issue 5, the amendments are effective upon issuance and did not have a material impact on the consolidated financial statements. For Issue 3, the amendments to ASU 2016-01 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years and did not have a material impact on the consolidated financial statements. For Issues 6 and 7, the amendments to ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years and did not have a material impact on the consolidated financial statements. FASB ASC 848 – In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from the LIBOR or other interbank offered rate on financial reporting. To help with the transition to new reference rates, the ASU provides optional expedients and exceptions for applying GAAP to affected contract modifications and hedge accounting relationships. The main provisions include: • A change in a contract’s reference interest rate would be accounted for as a continuation of that contract rather than as the creation of a new one for contracts, including loans, debt, leases, and other arrangements, that meet specific criteria. • When updating its hedging strategies in response to reference rate reform, an entity would be allowed to preserve its hedge accounting. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued. Because the guidance is meant to help entities through the transition period, it will be in effect for a limited time and will not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, for which an entity has elected certain optional expedients that are retained through the end of the hedging relationship. The amendments in this ASU are effective March 12, 2020 through December 31, 2022. Old National is evaluating the impact of adopting the new guidance on the consolidated financial statements on an ongoing basis with no material expected impact at this time. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The following table summarizes the amortized cost, fair value, and allowance for credit losses of the available-for-sale investment securities portfolio and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income (loss): (dollars in thousands) Amortized Unrealized Unrealized Allowance for Fair March 31, 2020 Available-for-Sale U.S. Treasury $ 11,379 $ 354 $ — $ — $ 11,733 U.S. government-sponsored entities and agencies 515,217 3,954 — — 519,171 Mortgage-backed securities - Agency 3,089,212 121,282 (494) — 3,210,000 States and political subdivisions 1,251,515 51,841 (961) — 1,302,395 Pooled trust preferred securities 13,798 — (6,376) — 7,422 Other securities 308,242 5,929 (4,867) — 309,304 Total available-for-sale securities $ 5,189,363 $ 183,360 $ (12,698) $ — $ 5,360,025 December 31, 2019 Available-for-Sale U.S. Treasury $ 17,567 $ 117 $ (2) $ — $ 17,682 U.S. government-sponsored entities and agencies 596,595 1,027 (4,638) — 592,984 Mortgage-backed securities - Agency 3,151,550 41,363 (9,052) — 3,183,861 States and political subdivisions 1,232,497 44,193 (1,047) — 1,275,643 Pooled trust preferred securities 13,811 — (5,589) — 8,222 Other securities 301,189 6,842 (1,332) — 306,699 Total available-for-sale securities $ 5,313,209 $ 93,542 $ (21,660) $ — $ 5,385,091 Proceeds from sales or calls of available-for-sale investment securities and the resulting realized gains and realized losses were as follows: Three Months Ended (dollars in thousands) 2020 2019 Proceeds from sales of available-for-sale debt securities $ 236,410 $ 8,681 Proceeds from calls of available-for-sale debt securities 163,771 23,685 Total $ 400,181 $ 32,366 Realized gains on sales of available-for-sale debt securities $ 5,595 $ 71 Realized gains on calls of available-for-sale debt securities 13 3 Realized losses on sales of available-for-sale debt securities (409) (148) Realized losses on calls of available-for-sale debt securities (25) (29) Debt securities gains (losses), net $ 5,174 $ (103) All of the mortgage-backed securities in the investment portfolio are residential mortgage-backed securities. The amortized cost and fair value of the investment securities portfolio are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Weighted average yield is based on amortized cost. March 31, 2020 (dollars in thousands) Amortized Fair Weighted Maturity Available-for-Sale Within one year $ 741,828 $ 762,452 1.82 % One to five years 2,591,483 2,691,307 2.73 Five to ten years 592,020 609,108 3.41 Beyond ten years 1,264,032 1,297,158 3.24 Total $ 5,189,363 $ 5,360,025 2.80 % The following table summarizes the available-for-sale investment securities with unrealized losses for which an allowance for credit losses has not been recorded by aggregated major security type and length of time in a continuous unrealized loss position: Less than 12 months 12 months or longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Losses March 31, 2020 Available-for-Sale Mortgage-backed securities - Agency $ 66,182 $ (295) $ 13,308 $ (199) $ 79,490 $ (494) States and political subdivisions 75,669 (961) 465 — 76,134 (961) Pooled trust preferred securities — — 7,422 (6,376) 7,422 (6,376) Other securities 101,144 (2,907) 24,690 (1,960) 125,834 (4,867) Total available-for-sale $ 242,995 $ (4,163) $ 45,885 $ (8,535) $ 288,880 $ (12,698) December 31, 2019 Available-for-Sale U.S. Treasury $ 999 $ (2) $ — $ — $ 999 $ (2) U.S. government-sponsored entities 357,647 (4,638) — — 357,647 (4,638) Mortgage-backed securities - Agency 786,245 (6,122) 212,056 (2,930) 998,301 (9,052) States and political subdivisions 120,166 (1,016) 7,006 (31) 127,172 (1,047) Pooled trust preferred securities — — 8,222 (5,589) 8,222 (5,589) Other securities 30,765 (182) 87,066 (1,150) 117,831 (1,332) Total available-for-sale $ 1,295,822 $ (11,960) $ 314,350 $ (9,700) $ 1,610,172 $ (21,660) Available-for-sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For available-for sale debt securities in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for sale debt securities that do not meet the criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security and the issuer, among other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes . No allowance for credit losses for available-for- sale debt securities was needed at March 31, 2020. Accrued interest receivable on available-for-sale debt securities totaled $22.6 million at March 31, 2020 and is excluded from the estimate of credit losses. The U.S. government sponsored entities and agencies and mortgage-backed securities – agency are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses. Prior to the adoption of ASC 326, there was no OTTI recorded during the three months ended March 31, 2019. At March 31, 2020, Old National’s securities portfolio consisted of 1,867 securities, 186 of which were in an unrealized loss position. The unrealized losses attributable to our agency mortgage-backed securities, states and political subdivisions, and other securities are the result of fluctuations in interest rates. Our pooled trust preferred securities are discussed below. At March 31, 2020, we had no intent to sell any securities that were in an unrealized loss position nor is it expected that we would be required to sell the securities prior to their anticipated recovery. Pooled Trust Preferred Securities At March 31, 2020, our securities portfolio contained two pooled trust preferred securities with a fair value of $7.4 million and unrealized losses of $6.4 million. These securities are evaluated using collateral-specific assumptions to estimate the expected future interest and principal cash flows. For the three months ended March 31, 2020 and 2019, we did not recognize any losses on these securities. The table below summarizes the relevant characteristics of our pooled trust preferred securities as well as our single issuer trust preferred securities that are included in the “other securities” category in this footnote. Each of the pooled trust preferred securities support a more senior tranche of security holders. Both pooled trust preferred securities have experienced credit defaults. However, these securities have excess subordination and are not other-than-temporarily impaired as a result of their class hierarchy, which provides more loss protection. Trust preferred securities March 31, 2020 (dollars in thousands) Class Lowest Amortized Fair Unrealized # of Issuers Actual Expected Excess Pooled trust preferred securities: Pretsl XXVII LTD B B $ 4,270 $ 2,192 $ (2,078) 32/41 14.4% 11.2% 33.5% Trapeza Ser 13A A2A BBB 9,528 5,230 (4,298) 39/41 4.5% 6.6% 51.6% 13,798 7,422 (6,376) Single Issuer trust preferred securities: JP Morgan Chase & Co BBB- 4,800 3,600 (1,200) Total $ 18,598 $ 11,022 $ (7,576) (1) Lowest rating for the security provided by any nationally recognized credit rating agency. Equity Securities Equity securities are recorded at fair value and totaled $6.9 million at March 31, 2020 and $6.8 million at December 31, 2019. There were gains on equity securities of $0.1 million during the three months ended March 31, 2020, compared to gains of $0.2 million during the three months ended March 31, 2019. Old National also has equity securities without readily determinable fair values that are included in other assets that totaled $93.1 million at March 31, 2020 and $91.4 million at December 31, 2019. These are illiquid investments that consist of partnerships, limited liability companies, and other ownership interests that support affordable housing, economic development, and community revitalization initiatives in low-to-moderate income neighborhoods. There have been no impairments or adjustments on these securities in the three months ended March 31, 2020 or 2019. |
Loans Held for Sale
Loans Held for Sale | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Loans Held for Sale | LOANS HELD FOR SALEMortgage loans held for immediate sale in the secondary market were $54.2 million at March 31, 2020, compared to $46.9 million at December 31, 2019. Residential loans that Old National has originated with the intent to sell are recorded at fair value. Conventional mortgage production is sold on a servicing retained basis. Certain loans, such as government guaranteed mortgage loans are sold on servicing released basis. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | LOANS AND ALLOWANCE FOR CREDIT LOSSES Old National’s loans consist primarily of loans made to consumers and commercial clients in various industries, including manufacturing, agribusiness, transportation, mining, wholesaling, and retailing. Most of Old National’s lending activity occurs within our principal geographic markets of Indiana, Kentucky, Michigan, Wisconsin, and Minnesota. Old National manages concentrations of credit exposure by industry, product, geography, customer relationship, and loan size. While loans to lessors of both residential and non-residential real estate exceed 10% of total loans, no individual sub-segment category within those broader categories reaches the 10% threshold. The loan categories used to monitor and analyze interest income and yields are different than the portfolio segments used to determine the allowance for credit losses for loans. The allowance for credit losses was calculated by pooling loans of similar credit risk characteristics and credit monitoring procedures. The four loan portfolios are classified into seven segments of loans - commercial, commercial real estate, BBCC, residential real estate, indirect, direct, and home equity. The commercial and commercial real estate loan categories shown on the balance sheet include the same pool of loans as the commercial, commercial real estate, and BBCC portfolio segments. The consumer loan category shown on the balance sheet is comprised of the same loans in the indirect, direct, and home equity portfolio segments. The composition of loans by portfolio segment as of December 31, 2019 and January 1, 2020 follows: December 31, 2019 Credit December 31, 2019 Impact of January 1, 2020 Statement Risk After ASC 326 Post-ASC 326 (dollars in thousands) Balance Reclassifications Reclassifications Adoption Adoption Loans: Commercial $ 2,890,296 $ (75,142) $ 2,815,154 $ 2,679 $ 2,817,833 Commercial real estate 5,166,792 (277,539) 4,889,253 1,637 4,890,890 BBCC N/A 352,681 352,681 33 352,714 Residential real estate 2,334,289 — 2,334,289 105 2,334,394 Consumer 1,726,147 (1,726,147) N/A N/A N/A Indirect N/A 935,584 935,584 10 935,594 Direct N/A 228,524 228,524 2 228,526 Home equity N/A 562,039 562,039 12 562,051 Total $ 12,117,524 $ — $ 12,117,524 $ 4,478 $ 12,122,002 Allowance: Commercial $ (22,585) $ 1,226 $ (21,359) $ (7,150) $ (28,509) Commercial real estate (21,588) 1,053 (20,535) (25,548) (46,083) BBCC N/A (2,279) (2,279) (3,702) (5,981) Residential real estate (2,299) — (2,299) (6,986) (9,285) Consumer (8,147) 8,147 N/A N/A N/A Indirect N/A (5,319) (5,319) 1,669 (3,650) Direct N/A (1,863) (1,863) 1,059 (804) Home equity N/A (965) (965) (689) (1,654) Total $ (54,619) $ — $ (54,619) $ (41,347) $ (95,966) The composition of loans by portfolio segment follows: (dollars in thousands) March 31, January 1, Commercial (1) $ 2,844,465 $ 2,817,833 Commercial real estate 5,118,439 4,890,890 BBCC 367,139 352,714 Residential real estate 2,327,851 2,334,394 Indirect 953,136 935,594 Direct 211,793 228,526 Home equity 561,789 562,051 Total loans 12,384,612 12,122,002 Allowance for credit losses (106,380) (95,966) Net loans $ 12,278,232 $ 12,026,036 (1) Includes direct finance leases of $44.4 million at March 31, 2020 and $47.2 million at December 31, 2019. The risk characteristics of each loan portfolio segment are as follows: Commercial Commercial loans are classified primarily on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial Real Estate Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing Old National’s commercial real estate portfolio are diverse in terms of type and geographic location. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. Included with commercial real estate are construction loans, which are underwritten utilizing independent appraisal reviews, sensitivity analysis of absorption and lease rates, financial analysis of the developers and property owners, and feasibility studies, if available. Construction loans are generally based on estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders (including Old National), sales of developed property, or an interim loan commitment from Old National until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions, and the availability of long-term financing. At 206%, Old National Bank’s commercial real estate loans as a percentage of its risk-based capital remained well below the regulatory guideline limit of 300% at March 31, 2020. BBCC BBCC loans are typically granted to small businesses with gross revenues of less than $5 million and aggregate debt of less than $1 million. Old National has established minimum debt service coverage ratios, minimum FICO scores for owner(s) and guarantor(s), and the ability to show relatively stable earnings as criteria to help mitigate risk. Repayment of these loans depends on the personal income of the borrowers and the cash flows of the business. These factors can be affected by changes in economic conditions such as unemployment levels. Residential With respect to residential loans that are secured by 1-4 family residences and are generally owner occupied, Old National typically establishes a maximum loan-to-value ratio and generally requires private mortgage insurance if that ratio is exceeded. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in residential property values. Portfolio risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Indirect Indirect loans are secured by automobile collateral, generally new and used cars and trucks from auto dealers that operate within our footprint. Old National typically mitigates the risk of Indirect loans by establishing minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers, conservative credit policies, and ongoing reviews of dealer relationships. Direct Direct loans are typically secured by collateral such as auto or real estate or are unsecured. Old National has established conservative underwriting standards such as minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers along with conservative credit policies. Home Equity Home Equity loans are generally secured by 1-4 family residences that are owner occupied. Old National has established conservative underwriting standards such as minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers along with conservative credit policies as well as monitoring of updated borrower credit scores. Risk is further mitigated in that Old National retains the right to unconditionally cancel unfunded lines of credit due to deterioration of borrower credit history. Allowance for Credit Losses for Loans Credit quality within the loans held for investment portfolio is continuously monitored by management and is reflected within the allowance for credit losses for loans. The allowance for credit losses is an estimate of expected losses inherent within the Company’s loans held for investment portfolio. Credit quality is assessed and monitored by evaluating various attributes and the results of those evaluations are utilized in underwriting new loans and in our process for estimating expected credit losses. Expected credit loss inherent in non-cancelable off-balance-sheet credit exposures is accounted for as a separate liability included in other liabilities on the balance sheet. The allowance for credit losses for loans held for investment is adjusted by a credit loss expense, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries. We have made a policy election to report accrued interest receivable as a separate line item on the balance sheet. Accrued interest receivable on loans totaled $54.0 million at March 31, 2020 and is excluded from the estimate of credit losses. The allowance for credit loss estimation process involves procedures to appropriately consider the unique characteristics of its loan portfolio segments. These segments are further disaggregated into loan classes, the level at which credit risk is monitored. When computing the level of expected credit losses, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, delinquency status, and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense in those future periods. The allowance level is influenced by loan volumes, loan AQR migration or delinquency status, changes in historical loss experience, and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The methodology for estimating the amount of expected credit losses reported in the allowance for credit losses has two basic components: first, an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans; and second, a pooled component for estimated expected credit losses for pools of loans that share similar risk characteristics. See Note 2 for more information about CECL for loans and unfunded loan commitments. For the three months ended March 31, 2020 the allowance for credit losses increased primarily due to macroeconomic factors surrounding the COVID-19 pandemic. The forecast scenario includes a sharp decline in gross domestic product in the second quarter of 2020 with a return to growth by year end. The immediate increase in unemployment remains elevated through 2023. In addition to these quantitative inputs, several qualitative factors were considered, including the risk that the economic decline, specifically unemployment and gross domestic product, prove to be more severe and/or prolonged than our baseline forecast. The mitigating impact of the unprecedented fiscal stimulus, including direct payments to individuals, increased unemployment benefits, as well as the various government sponsored loan programs, was also considered. Old National’s activity in the allowance for credit losses for loans by portfolio segment for the three months ended March 31, 2020 was as follows: (dollars in thousands) Balance at Impact of Sub-Total Charge-offs Recoveries Provision Balance at End of Period Three Months Ended Commercial $ 21,359 $ 7,150 $ 28,509 $ (5,042) $ 357 $ 7,301 $ 31,125 Commercial real estate 20,535 25,548 46,083 (1,292) 669 8,643 54,103 BBCC 2,279 3,702 5,981 (15) 66 (615) 5,417 Residential real estate 2,299 6,986 9,285 (300) 169 483 9,637 Indirect 5,319 (1,669) 3,650 (1,203) 414 805 3,666 Direct 1,863 (1,059) 804 (475) 152 341 822 Home equity 965 689 1,654 (118) 82 (8) 1,610 Total allowance for credit losses $ 54,619 $ 41,347 $ 95,966 $ (8,445) $ 1,909 $ 16,950 $ 106,380 The provision recapture for the BBCC portfolio was the result of several offsetting items. The economic forecast resulted in an increase to the provision for credit losses for the quarter, which was more than offset by a decrease related to the payoffs of several nonaccrual loans during the quarter. In addition, the BBCC portfolio has a lower weighted average life quarter over quarter, which resulted in a decrease to the allowance for credit losses that was needed at March 31, 2020. Allowance for Credit Losses on Unfunded Loan Commitments Old National maintains an allowance for credit losses on unfunded commercial lending commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses for loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded loan commitments is classified as a liability account on the balance sheet. Old National’s activity in the allowance for credit losses on unfunded loan commitments for the three months ended March 31, 2020 was as follows: (dollars in thousands) Total Three months ended March 31, 2020 Allowance for credit losses on unfunded loan commitments: Balance at beginning of period $ 2,656 Impact of adopting ASC 326 4,549 Sub-Total 7,205 Expense (reversal of expense) for credit losses 1,745 Balance at end of period $ 8,950 Credit Quality Old National’s management monitors the credit quality of its loans on an ongoing basis with the AQR for commercial loans reviewed annually or at renewal and the performance of its residential and consumer loans based upon the accrual status refreshed at least quarterly. Internally, management assigns an AQR to each non-homogeneous commercial, commercial real estate, and BBCC loan in the portfolio. The primary determinants of the AQR are the reliability of the primary source of repayment and the past, present, and projected financial condition of the borrower. The AQR will also consider current industry conditions. Major factors used in determining the AQR can vary based on the nature of the loan, but commonly include factors such as debt service coverage, internal cash flow, liquidity, leverage, operating performance, debt burden, FICO scores, occupancy, interest rate sensitivity, and expense burden. Old National uses the following definitions for risk ratings: Criticized . Special mention loans that have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Classified – Substandard . Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Classified – Nonaccrual . Loans classified as nonaccrual have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection in full, on the basis of currently existing facts, conditions, and values, in doubt. Classified – Doubtful . Loans classified as doubtful have all the weaknesses inherent in those classified as nonaccrual, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Pass rated loans are those loans that are other than criticized, classified – substandard, classified – nonaccrual, or classified – doubtful. The following table summarizes the risk category of commercial, commercial real estate, and BBCC loans by loan portfolio segment and class of loan: Risk Rating (dollars in thousands) Pass Criticized Classified - Classified - Classified - Total March 31, 2020 Commercial: Term Loans at Amortized Cost by Origination Year: Prior to 2016 $ 339,465 $ 9,386 $ 9,935 $ 816 $ 3,051 $ 362,653 2016 177,397 6,799 4,268 784 803 190,051 2017 342,542 12,704 13,345 2,324 9,838 380,753 2018 312,229 12,995 7,893 5,905 157 339,179 2019 546,484 4,707 5,421 3,274 2,254 562,140 2020 213,893 1,708 751 — — 216,352 Revolving Loans 581,830 39,157 18,326 3,905 — 643,218 Revolving to Term Loans 138,584 1,356 3,397 6,782 — 150,119 Total $ 2,652,424 $ 88,812 $ 63,336 $ 23,790 $ 16,103 $ 2,844,465 Commercial real estate: Term Loans at Amortized Cost by Origination Year: Prior to 2016 $ 793,743 $ 22,910 $ 12,944 $ 15,352 $ 3,881 $ 848,830 2016 596,312 12,915 17,519 14,368 212 641,326 2017 838,575 69,842 27,025 1,830 4,356 941,628 2018 864,477 7,933 23,741 3,525 3,300 902,976 2019 1,149,445 20,007 2,878 2,177 1,965 1,176,472 2020 280,341 — 39 — — 280,380 Revolving Loans 25,474 500 212 — — 26,186 Revolving to Term Loans 282,936 6,522 10,792 391 — 300,641 Total $ 4,831,303 $ 140,629 $ 95,150 $ 37,643 $ 13,714 $ 5,118,439 BBCC: Term Loans at Amortized Cost by Origination Year: Prior to 2016 $ 17,943 $ — $ — $ — $ 187 $ 18,130 2016 30,762 1,024 551 538 53 32,928 2017 45,700 522 1,028 575 — 47,825 2018 61,865 512 — 1,070 61 63,508 2019 90,970 877 1,443 438 — 93,728 2020 26,069 172 — 46 — 26,287 Revolving Loans 58,040 4,044 644 76 — 62,804 Revolving to Term Loans 18,679 1,419 1,008 823 — 21,929 Total $ 350,028 $ 8,570 $ 4,674 $ 3,566 $ 301 $ 367,139 For residential real estate and consumer loan classes, Old National evaluates credit quality based on the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an on-going basis dependent upon improvement and deterioration in credit quality. The following table presents the amortized cost in residential real estate and consumer loans based on payment activity: Payment Performance (dollars in thousands) Performing Nonperforming Total March 31, 2020 Residential real estate: Term Loans at Amortized Cost by Origination Year: Prior to 2016 $ 826,831 $ 20,629 $ 847,460 2016 292,199 1,755 293,954 2017 303,763 661 304,424 2018 219,650 425 220,075 2019 561,322 97 561,419 2020 100,385 — 100,385 Revolving Loans — — — Revolving to Term Loans 134 — 134 Total $ 2,304,284 $ 23,567 $ 2,327,851 Indirect: Term Loans at Amortized Cost by Origination Year: Prior to 2016 $ 53,056 $ 277 $ 53,333 2016 99,915 685 100,600 2017 152,882 1,113 153,995 2018 199,211 568 199,779 2019 348,865 242 349,107 2020 96,230 — 96,230 Revolving Loans — — — Revolving to Term Loans 92 — 92 Total $ 950,251 $ 2,885 $ 953,136 Direct: Term Loans at Amortized Cost by Origination Year: Prior to 2016 $ 29,807 $ 535 $ 30,342 2016 15,445 249 15,694 2017 28,370 145 28,515 2018 48,587 214 48,801 2019 46,602 51 46,653 2020 12,485 — 12,485 Revolving Loans 27,834 — 27,834 Revolving to Term Loans 1,468 1 1,469 Total $ 210,598 $ 1,195 $ 211,793 Home equity: Term Loans at Amortized Cost by Origination Year: Prior to 2016 $ — $ — $ — 2016 240 326 566 2017 1,002 37 1,039 2018 719 — 719 2019 1,085 31 1,116 2020 — — — Revolving Loans 535,095 189 535,284 Revolving to Term Loans 19,425 3,640 23,065 Total $ 557,566 $ 4,223 $ 561,789 Nonaccrual and Past Due Loans Old National does not record interest on nonaccrual loans until principal is recovered. For all loan classes, a loan is generally placed on nonaccrual status when principal or interest becomes 90 days past due unless it is well secured and in the process of collection, or earlier when concern exists as to the ultimate collectability of principal or interest. Interest accrued but not received is reversed against earnings. Cash interest received on these loans is applied to the principal balance until the principal is recovered or until the loan returns to accrual status. Loans may be returned to accrual status when all the principal and interest amounts contractually due are brought current, remain current for a prescribed period, and future payments are reasonably assured. The following table presents the aging of the amortized cost basis in past due loans as of March 31, 2020 by class of loans: (dollars in thousands) 30-59 Days 60-89 Days Past Due Total Current Total March 31, 2020 Commercial $ 3,578 $ 1,707 $ 9,156 $ 14,441 $ 2,830,024 $ 2,844,465 Commercial Real Estate 6,114 2,200 13,412 21,726 5,096,713 5,118,439 BBCC 419 156 234 809 366,330 367,139 Residential 13,895 4,603 9,255 27,753 2,300,098 2,327,851 Indirect 6,358 963 339 7,660 945,476 953,136 Direct 1,513 183 325 2,021 209,772 211,793 Home equity 1,755 474 1,761 3,990 557,799 561,789 Total $ 33,632 $ 10,286 $ 34,482 $ 78,400 $ 12,306,212 $ 12,384,612 The following table presents the amortized cost basis of loans on nonaccrual status and loans past due 90 days or more and still accruing by class of loan: (dollars in thousands) Beginning End Nonaccrual Past Due Interest At or for the Three Months Ended March 31, 2020 Commercial $ 40,103 $ 39,893 $ 7,040 $ 3 $ — Commercial Real Estate 58,350 51,355 13,281 165 — BBCC 4,530 3,869 — — — Residential 20,970 23,567 — 112 — Indirect 3,318 2,885 — 81 — Direct 1,303 1,195 — 102 — Home equity 3,857 4,223 34 195 — Total $ 132,431 $ 126,987 $ 20,355 $ 658 $ — When management determines that foreclosure is probable, expected credit losses for collateral-dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. The class of loan represents the primary collateral type associated with the loan. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table presents the amortized cost basis of collateral-dependent loans by class of loan: Type of Collateral (dollars in thousands) Real Blanket Investment Auto Other March 31, 2020 Commercial $ 6,802 $ 23,175 $ 8,209 $ 396 $ 1,522 Commercial Real Estate 40,361 150 3,199 — 179 BBCC 1,930 1,614 59 246 — Residential 23,567 — — — — Indirect — — — 2,885 — Direct 863 — 8 265 — Home equity 4,223 — — — — Total loans $ 77,746 $ 24,939 $ 11,475 $ 3,792 $ 1,701 Loan Participations Old National has loan participations, which qualify as participating interests, with other financial institutions. At March 31, 2020, these loans totaled $849.4 million, of which $401.6 million had been sold to other financial institutions and $447.8 million was retained by Old National. The loan participations convey proportionate ownership rights with equal priority to each participating interest holder; involve no recourse (other than ordinary representations and warranties) to, or subordination by, any participating interest holder; all cash flows are divided among the participating interest holders in proportion to each holder’s share of ownership; and no holder has the right to pledge the entire financial asset unless all participating interest holders agree. Troubled Debt Restructurings Old National may choose to restructure the contractual terms of certain loans. The decision to restructure a loan, versus aggressively enforcing the collection of the loan, may benefit Old National by increasing the ultimate probability of collection. Any loans that are modified are reviewed by Old National to identify if a TDR has occurred, which is when for economic or legal reasons related to a borrower’s financial difficulties, Old National Bank grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status. The modification of the terms of such loans include one or a combination of the following: a reduction of the stated interest rate of the loan, an extension of the maturity date at a stated rate of interest lower than the current market rate of new debt with similar risk, or a permanent reduction of the recorded investment of the loan. Loans modified in a TDR are typically placed on nonaccrual status until we determine the future collection of principal and interest is reasonably assured, which generally requires that the borrower demonstrate a period of performance according to the restructured terms for 6 months. If we are unable to resolve a nonperforming loan issue, the credit will be charged off when it is apparent there will be a loss. For large commercial type loans, each relationship is individually analyzed for evidence of apparent loss based on quantitative benchmarks or subjectively based upon certain events or particular circumstances. Generally, Old National charges off small commercial loans scored through our small business credit center with contractual balances under $250,000 that are 90 days or more delinquent and do not have adequate collateral support. For residential and consumer loans, a charge off is recorded at the time foreclosure is initiated or when the loan becomes 120 to 180 days past due, whichever is earlier. For commercial TDRs, an allocated reserve is established within the allowance for credit losses for the difference between the carrying value of the loan and its computed value. To determine the computed value of the loan, one of the following methods is selected: (1) the present value of expected cash flows discounted at the loan’s original effective interest rate, (2) the loan’s observable market price, or (3) the fair value of the collateral value, if the loan is collateral dependent. The allocated reserve is established as the difference between the carrying value of the loan and the collectable value. If there are significant changes in the amount or timing of the loan’s expected future cash flows, impairment is recalculated and the valuation allowance is adjusted accordingly. When a residential or consumer loan is identified as a TDR, the loan is typically written down to its collateral value less selling costs. The following table presents activity in TDRs for the three months ended March 31, 2020: (dollars in thousands) Beginning (Charge-offs)/ (Payments)/ Additions Ending Three months ended March 31, 2020 Commercial $ 12,412 $ (695) $ (789) $ — $ 10,928 Commercial Real Estate 14,277 (1,272) (157) — 12,848 BBCC 578 — (16) — 562 Residential 3,107 — (67) — 3,040 Indirect — 3 (3) — — Direct 983 2 (63) — 922 Home equity 381 1 (8) — 374 Total $ 31,738 $ (1,961) $ (1,103) $ — $ 28,674 TDRs included within nonaccrual loans totaled $11.8 million at March 31, 2020 and $13.8 million at December 31, 2019. Old National has allocated specific reserves to customers whose loan terms have been modified in TDRs totaling $1.4 million at March 31, 2020 and $0.9 million at December 31, 2019. At March 31, 2020, Old National had committed to lend an additional $0.9 million to customers with outstanding loans that are classified as TDRs, compared to $2.3 million at December 31, 2019. The pre-modification and post-modification outstanding recorded investments of loans modified as TDRs during the three months ended March 31, 2020 and 2019 are the same except for when the loan modifications involve the forgiveness of principal. The following table presents loans modified as TDRs that occurred during the three months ended March 31, 2020 and 2019: (dollars in thousands) Total Three Months Ended March 31, 2020 TDR: Number of loans — Pre-modification outstanding recorded investment — Post-modification outstanding recorded investment — Three Months Ended March 31, 2019 TDR: Number of loans 4 Pre-modification outstanding recorded investment 5,510 Post-modification outstanding recorded investment 5,510 The TDRs that occurred during the three months ended March 31, 2020 and 2019 did not have a material impact on the allowance for loan losses and resulted in no charge-offs during the three months ended March 31, 2020, or 2019. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. TDRs for which there was a payment default within twelve months following the modification were insignificant during the three months ended March 31, 2020 and 2019. The terms of certain other loans were modified during 2020 and 2019 that did not meet the definition of a TDR. It is our process to review all classified and criticized loans that, during the period, have been renewed, have entered into a forbearance agreement, have gone from principal and interest to interest only, or have extended the maturity date. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on its debt in the foreseeable future without the modification. The evaluation is performed under our internal underwriting policy. We also evaluate whether a concession has been granted or if we were adequately compensated through a market interest rate, additional collateral or a bona fide guarantee. We also consider whether the modification was insignificant relative to the other terms of the agreement or the delay in a payment. In general, once a modified loan is considered a TDR, the loan will always be considered a TDR, and therefore impaired, until it is paid in full, otherwise settled, sold, or charged off. However, guidance also permits for loans to be removed from TDR status when subsequently restructured under these circumstances: (1) at the time of the subsequent restructuring, the borrower is not experiencing financial difficulties, and this is documented by a current credit evaluation at the time of the restructuring, (2) under the terms of the subsequent restructuring agreement, the institution has granted no concession to the borrower; and (3) the subsequent restructuring agreement includes market terms that are no less favorable than those that would be offered for a comparable new loan. For loans subsequently restructured that have cumulative principal forgiveness, the loan should continue to be measured in accordance with ASC 310-10, Receivables – Overall . However, consistent with ASC 310-40-50-2, Troubled Debt Restructurings by Creditors, Creditor Disclosure of Troubled Debt Restructurings , the loan would not be required to be reported in the years following the restructuring if the subsequent restructuring meets both of these criteria: (1) has an interest rate at the time of the subsequent restructuring that is not less than a market interest rate; and (2) is performing in compliance with its modified terms after |
Other Real Estate Owned
Other Real Estate Owned | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Other Real Estate Owned | OTHER REAL ESTATE OWNED Other real estate owned is included in other assets. The following table presents activity in other real estate owned: Three Months Ended (dollars in thousands) 2020 2019 Balance at beginning of period $ 2,169 $ 3,232 Additions 146 394 Sales (113) (272) Impairments (39) (75) Balance at end of period (1) $ 2,163 $ 3,279 (1) Includes repossessed personal property of $0.4 million at March 31, 2020 and $0.4 million at March 31, 2019. Foreclosed residential real estate property recorded as a result of obtaining physical possession of the property included in the table above totaled $0.5 million at March 31, 2020 and $0.5 million at December 31, 2019. Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $5.1 million at March 31, 2020 and $3.7 million at December 31, 2019. |
Premises and Equipment
Premises and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | PREMISES AND EQUIPMENT The composition of premises and equipment was as follows: (dollars in thousands) March 31, December 31, 2019 Land $ 71,451 $ 79,569 Buildings 360,462 380,925 Furniture, fixtures, and equipment 117,566 112,654 Leasehold improvements 44,371 44,136 Total 593,850 617,284 Accumulated depreciation (131,486) (126,359) Premises and equipment, net $ 462,364 $ 490,925 Depreciation expense was $8.6 million for the three months ended March 31, 2020, compared to $6.4 million for the three months ended March 31, 2019. Finance Leases Old National leases certain branch buildings under finance leases that are included in premises and equipment. See Notes 9 and 15 to the consolidated financial statements for detail regarding these leases. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Lessee Disclosure [Abstract] | |
Leases | LEASES Old National has operating and finance leases for land, office space, banking centers, and equipment. These leases are generally for periods of 10 to 20 years with various renewal options. We include certain renewal options in the measurement of our right-of-use assets and lease liabilities if they are reasonably certain to be exercised. Variable lease payments that are dependent on an index or a rate are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Variable lease payments that are not dependent on an index or a rate are excluded from the measurement of the lease liability and are recognized in profit and loss when incurred. Variable lease payments are defined as payments made for the right to use an asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. Old National has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. For certain equipment leases, Old National accounts for the lease and non-lease components as a single lease component using the practical expedient available for that class of assets. Old National does not have any material sub-lease agreements. The components of lease expense were as follows: Affected Line Three Months Ended (dollars in thousands) Statement of Income 2020 2019 Operating lease cost occupancy/equipment expense $ 9,181 $ 4,402 Finance lease cost: Amortization of right-of-use assets occupancy expense 166 158 Interest on lease liabilities interest expense 78 81 Short-term lease cost occupancy expense 1 1 Sub-lease income occupancy expense (128) (179) Total $ 9,298 $ 4,463 Supplemental balance sheet information related to leases was as follows: (dollars in thousands) March 31, December 31, 2019 Operating Leases Operating lease right-of-use assets $ 86,819 $ 95,477 Operating lease liabilities 95,830 99,500 Finance Leases Premises and equipment, net 7,004 7,170 Other borrowings 7,284 7,406 Weighted-Average Remaining Lease Term (in Years) Operating leases 10.5 10.6 Finance leases 11.0 11.3 Weighted-Average Discount Rate Operating leases 3.43 % 3.45 % Finance leases 4.44 % 4.43 % Supplemental cash flow information related to leases was as follows: Three Months Ended (dollars in thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,193 $ 4,436 Operating cash flows from finance leases 78 $ 81 Financing cash flows from finance leases 122 $ 111 The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2020: (dollars in thousands) Operating Finance 2020 $ 12,306 $ 603 2021 15,492 809 2022 13,695 815 2023 9,078 830 2024 7,840 858 Thereafter 56,858 5,374 Total undiscounted lease payments 115,269 9,289 Amounts representing interest (19,439) (2,005) Lease liability $ 95,830 $ 7,284 Old National leases certain office space and buildings to unrelated parties in exchange for consideration. All of these tenant leases are classified as operating leases. The following table presents a maturity analysis of the Company’s tenant leases at March 31, 2020: (dollars in thousands) Tenant Leases 2020 $ 1,832 2021 2,295 2022 1,941 2023 1,536 2024 1,409 Thereafter 2,520 Total undiscounted lease payments $ 11,533 |
Leases | LEASES Old National has operating and finance leases for land, office space, banking centers, and equipment. These leases are generally for periods of 10 to 20 years with various renewal options. We include certain renewal options in the measurement of our right-of-use assets and lease liabilities if they are reasonably certain to be exercised. Variable lease payments that are dependent on an index or a rate are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Variable lease payments that are not dependent on an index or a rate are excluded from the measurement of the lease liability and are recognized in profit and loss when incurred. Variable lease payments are defined as payments made for the right to use an asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. Old National has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. For certain equipment leases, Old National accounts for the lease and non-lease components as a single lease component using the practical expedient available for that class of assets. Old National does not have any material sub-lease agreements. The components of lease expense were as follows: Affected Line Three Months Ended (dollars in thousands) Statement of Income 2020 2019 Operating lease cost occupancy/equipment expense $ 9,181 $ 4,402 Finance lease cost: Amortization of right-of-use assets occupancy expense 166 158 Interest on lease liabilities interest expense 78 81 Short-term lease cost occupancy expense 1 1 Sub-lease income occupancy expense (128) (179) Total $ 9,298 $ 4,463 Supplemental balance sheet information related to leases was as follows: (dollars in thousands) March 31, December 31, 2019 Operating Leases Operating lease right-of-use assets $ 86,819 $ 95,477 Operating lease liabilities 95,830 99,500 Finance Leases Premises and equipment, net 7,004 7,170 Other borrowings 7,284 7,406 Weighted-Average Remaining Lease Term (in Years) Operating leases 10.5 10.6 Finance leases 11.0 11.3 Weighted-Average Discount Rate Operating leases 3.43 % 3.45 % Finance leases 4.44 % 4.43 % Supplemental cash flow information related to leases was as follows: Three Months Ended (dollars in thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,193 $ 4,436 Operating cash flows from finance leases 78 $ 81 Financing cash flows from finance leases 122 $ 111 The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2020: (dollars in thousands) Operating Finance 2020 $ 12,306 $ 603 2021 15,492 809 2022 13,695 815 2023 9,078 830 2024 7,840 858 Thereafter 56,858 5,374 Total undiscounted lease payments 115,269 9,289 Amounts representing interest (19,439) (2,005) Lease liability $ 95,830 $ 7,284 Old National leases certain office space and buildings to unrelated parties in exchange for consideration. All of these tenant leases are classified as operating leases. The following table presents a maturity analysis of the Company’s tenant leases at March 31, 2020: (dollars in thousands) Tenant Leases 2020 $ 1,832 2021 2,295 2022 1,941 2023 1,536 2024 1,409 Thereafter 2,520 Total undiscounted lease payments $ 11,533 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS The following table shows the changes in the carrying amount of goodwill: Three Months Ended (dollars in thousands) 2020 2019 Balance at beginning of period $ 1,036,994 $ 1,036,258 Acquisitions and adjustments — — Balance at end of period $ 1,036,994 $ 1,036,258 Old National performed the required annual goodwill impairment test as of August 31, 2019 and there was no impairment. No events or circumstances since the August 31, 2019 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists. Refer to Note 20, Commitments and Contingencies, for additional information on COVID-19 and its potential impact to Old National. The gross carrying amount and accumulated amortization of other intangible assets were as follows: (dollars in thousands) Gross Accumulated Net March 31, 2020 Core deposit $ 119,051 $ (66,488) $ 52,563 Customer trust relationships 16,547 (12,781) 3,766 Total intangible assets $ 135,598 $ (79,269) $ 56,329 December 31, 2019 Core deposit $ 119,051 $ (63,020) $ 56,031 Customer trust relationships 16,547 (12,473) 4,074 Total intangible assets $ 135,598 $ (75,493) $ 60,105 Other intangible assets consist of core deposit intangibles and customer relationship intangibles and are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of 5 to 15 years. Old National reviews other intangible assets for possible impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. No impairment charges were recorded during the three months ended March 31, 2020 or 2019. Total amortization expense associated with intangible assets was $3.8 million for the three months ended March 31, 2020, compared to $4.5 million for the three months ended March 31, 2019. Estimated amortization expense for future years is as follows: (dollars in thousands) 2020 remaining $ 10,315 2021 11,336 2022 9,014 2023 7,053 2024 5,645 Thereafter 12,966 Total $ 56,329 |
Loan Servicing Rights
Loan Servicing Rights | 3 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Loan Servicing Rights | LOAN SERVICING RIGHTSAt March 31, 2020, loan servicing rights derived from loans sold with servicing retained totaled $24.1 million, compared to $25.4 million at December 31, 2019. Loans serviced for others are not reported as assets. The principal balance of loans serviced for others was $3.467 billion at March 31, 2020, compared to $3.445 billion at December 31, 2019. Approximately 99.8% of the loans serviced for others at March 31, 2020 were residential mortgage loans. Custodial escrow balances maintained in connection with serviced loans were $28.4 million at March 31, 2020 and $12.7 million at December 31, 2019. The following table summarizes the carrying values and activity related to loan servicing rights and the related valuation allowance: Three Months Ended (dollars in thousands) 2020 2019 Balance at beginning of period $ 25,399 $ 24,512 Additions 1,731 659 Amortization (1,555) (900) Balance before valuation allowance at end of period 25,575 24,271 Valuation allowance: Balance at beginning of period (31) (15) (Additions)/recoveries (1,412) (2) Balance at end of period (1,443) (17) Loan servicing rights, net $ 24,132 $ 24,254 At March 31, 2020, the fair value of servicing rights was $24.1 million, which was determined using a discount rate of 9% and a conditional prepayment rate of 16%. At December 31, 2019, the fair value of servicing rights was $26.5 million, which was determined using a discount rate of 12% and a conditional prepayment rate of 10%. |
Qualified Affordable Housing Pr
Qualified Affordable Housing Projects and Other Tax Credit Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments in Affordable Housing Projects [Abstract] | |
Qualified Affordable Housing Projects and Other Tax Credit Investments | QUALIFIED AFFORDABLE HOUSING PROJECTS AND OTHER TAX CREDIT INVESTMENTS Old National is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy, or other renovation or community revitalization projects. These investments are included in other assets on the balance sheet, with any unfunded commitments included with other liabilities. As of March 31, 2020, Old National expects to recover its remaining investments through the use of the tax credits that are generated by the investments. The following table summarizes Old National’s investments in qualified affordable housing projects and other tax credit investments: (dollars in thousands) March 31, 2020 December 31, 2019 Investment Accounting Method Investment Unfunded Commitment (1) Investment Unfunded Commitment LIHTC Proportional amortization $ 28,909 $ 3,907 $ 29,735 $ 3,911 FHTC Equity 25,760 22,896 22,403 17,886 Renewable Energy Equity 7,151 3,669 7,523 4,129 Total $ 61,820 $ 30,472 $ 59,661 $ 25,926 (1) All commitments will be paid by Old National by 2027. The following table summarizes the amortization expense and tax benefit recognized for Old National’s qualified affordable housing projects and other tax credit investments: (dollars in thousands) Amortization Expense (1) Tax Expense Three Months Ended March 31, 2020 LIHTC $ 776 $ (1,019) FHTC 5,143 (1,356) Renewable Energy 372 (400) Total $ 6,291 $ (2,775) Three Months Ended March 31, 2019 LIHTC $ 792 $ (1,042) Renewable Energy 260 (244) Total $ 1,052 $ (1,286) (1) The amortization expense for the LIHTC investments is included in our income tax expense. The amortization expense for the FHTC and Renewable Energy tax credits is included in noninterest expense. (2) All of the tax benefits recognized are included in our income tax expense. The tax benefit recognized for the FHTC and Renewable Energy investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) of the investments’ income (loss). |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase | 3 Months Ended |
Mar. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Securities Sold Under Agreements to Repurchase | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase are secured borrowings. Old National pledges investment securities to secure these borrowings. The following table presents securities sold under agreements to repurchase and related weighted-average interest rates: At or for the Three Months Ended (dollars in thousands) March 31, December 31, March 31, Outstanding at period end $ 318,067 $ 327,782 $ 342,480 Average amount outstanding during the period 329,091 337,786 361,261 Maximum amount outstanding at any month-end during the period 318,067 337,185 367,884 Weighted-average interest rate: During the period 0.47 % 0.55 % 0.74 % At period end 0.22 % 0.53 % 0.79 % The following table presents the contractual maturity of our secured borrowings and class of collateral pledged: At March 31, 2020 Remaining Contractual Maturity of the Agreements (dollars in thousands) Overnight and Continuous Up to 30-90 Days Greater Than 90 days Total Repurchase Agreements: U.S. Treasury and agency securities $ 318,067 $ — $ — $ — $ 318,067 Total $ 318,067 $ — $ — $ — $ 318,067 The fair value of securities pledged to secure repurchase agreements may decline. Old National has pledged securities valued at 121% of the gross outstanding balance of repurchase agreements at March 31, 2020 to manage this risk. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 3 Months Ended |
Mar. 31, 2020 | |
Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank Advances | FEDERAL HOME LOAN BANK ADVANCES The following table summarizes Old National Bank’s FHLB advances: (dollars in thousands) March 31, December 31, FHLB advances (fixed rates 0.31% to 4.96% and variable rates 0.09% to 1.82%) maturing April 2020 to January 2030 $ 2,100,660 $ 1,800,664 ASC 815 fair value hedge and other basis adjustments 29,603 22,183 Total other borrowings $ 2,130,263 $ 1,822,847 FHLB advances had weighted-average rates of 1.79% at March 31, 2020 and 2.19% at December 31, 2019. Investment securities and residential real estate loans collateralize these borrowings up to 140% of outstanding debt. Contractual maturities of FHLB advances at March 31, 2020 were as follows: (dollars in thousands) Due in 2020 $ 125,000 Due in 2021 20,000 Due in 2022 130,500 Due in 2023 160 Due in 2024 375,000 Thereafter 1,450,000 ASC 815 fair value hedge and other basis adjustments 29,603 Total $ 2,130,263 |
Other Borrowings
Other Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Borrowings | OTHER BORROWINGS The following table summarizes Old National’s other borrowings: (dollars in thousands) March 31, December 31, Old National Bancorp: Senior unsecured notes (fixed rate 4.125% maturing August 2024) $ 175,000 $ 175,000 Unamortized debt issuance costs related to senior unsecured notes (676) (715) Junior subordinated debentures (variable rates of 2.34% to 5.62%) maturing April 2032 to June 2037 45,093 52,310 Other basis adjustments (3,082) (2,833) Old National Bank: Finance lease liabilities 7,284 7,406 Subordinated debentures (fixed rate 5.75%) 12,000 12,000 Other 495 517 Total other borrowings $ 236,114 $ 243,685 Contractual maturities of other borrowings at March 31, 2020 were as follows: (dollars in thousands) Due in 2020 $ 376 Due in 2021 524 Due in 2022 553 Due in 2023 591 Due in 2024 175,643 Thereafter 61,690 Unamortized debt issuance costs and other basis adjustments (3,263) Total $ 236,114 Senior Notes In August 2014, Old National issued $175.0 million of senior unsecured notes with a 4.125% interest rate. These notes pay interest on February 15 and August 15. The notes mature on August 15, 2024. Junior Subordinated Debentures Junior subordinated debentures related to trust preferred securities are classified in “other borrowings.” On November 1, 2017, Old National acquired Anchor (MN) and exceeded $15 billion in assets. As a result, these securities can only be treated as Tier 2 capital for regulatory purposes, subject to certain limitations. Prior to the fourth quarter of 2017, these securities qualified as Tier 1 capital for regulatory purposes. Through various acquisitions, Old National assumed junior subordinated debenture obligations related to various trusts that issued trust preferred securities. Old National guarantees the payment of distributions on the trust preferred securities issued by the trusts. Proceeds from the issuance of each of these securities were used to purchase junior subordinated debentures with the same financial terms as the securities issued by the trusts. Old National, at any time, may redeem the junior subordinated debentures at par and, thereby cause a redemption of the trust preferred securities in whole or in part. In February 2020, Old National redeemed at par $4.1 million of junior subordinated debentures issued in October 2002 by Anchor Bancorp, Inc. (as successor to VFSC, Inc.), which was acquired by Old National in 2017. This subsequently caused the redemption of all of the common and capital (preferred) securities issued by VFSC Capital Trust II by the same amount in aggregate. At the time of redemption, the rate on this floating rate instrument was 5.36%. In March 2020, Old National redeemed at par $3.1 million of junior subordinated debentures issued in April 2004 by Anchor Bancorp, Inc. (as successor to VFSC, Inc.), which was acquired by Old National in 2017. This subsequently caused the redemption of all of the common and capital (preferred) securities issued by VFSC Capital Trust III by the same amount in aggregate. At the time of redemption, the rate on this floating rate instrument was 4.71%. The following table summarizes the terms of our outstanding junior subordinated debentures: (dollars in thousands) Rate at Name of Trust Issuance Date Issuance Amount Rate March 31, 2020 Maturity Date VFSC Capital Trust I April 2002 $ 3,093 6-month LIBOR plus 3.70% 5.62% April 22, 2032 St. Joseph Capital Trust II March 2005 5,000 3-month LIBOR plus 1.75% 2.59% March 17, 2035 Anchor Capital Trust III August 2005 5,000 3-month LIBOR plus 1.55% 3.00% September 30, 2035 Home Federal Statutory September 2006 15,000 3-month LIBOR plus 1.65% 2.39% September 15, 2036 Monroe Bancorp Capital July 2006 3,000 3-month LIBOR plus 1.60% 3.47% October 7, 2036 Tower Capital Trust 3 December 2006 9,000 3-month LIBOR plus 1.69% 3.27% March 1, 2037 Monroe Bancorp Statutory March 2007 5,000 3-month LIBOR plus 1.60% 2.34% June 15, 2037 Total $ 45,093 Subordinated Debentures On November 1, 2017, Old National assumed $12.0 million of subordinated fixed-to-floating notes related to the acquisition of Anchor (MN). The subordinated debentures have a 5.75% fixed rate of interest through October 29, 2020. From October 30, 2020 to the October 30, 2025 maturity date, the debentures have a floating rate of interest equal to the three-month LIBOR rate plus 4.356%. Finance Lease Liabilities Old National has long-term finance lease liabilities for certain banking centers totaling $7.3 million. The economic substance of these leases is that Old National is financing the acquisition of the building through the lease and accordingly, the building is recorded as a right-of-use asset in premises and equipment and the lease is recorded as a liability in other borrowings. The right-of-use assets and lease liabilities are initially measured at the present value of the lease payments over the lease term using Old National’s incremental borrowing rate based on the information available at the commencement date of the lease. See Note 9 to the consolidated financial statements for a maturity analysis of the Company’s finance lease liabilities. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes within each classification of AOCI, net of tax: (dollars in thousands) Unrealized Unrealized Gains and Defined Total Three Months Ended March 31, 2020 Balance at beginning of period $ 56,131 $ — $ 240 $ (164) $ 56,207 Other comprehensive income (loss) before 80,369 — 5,886 — 86,255 Amounts reclassified from AOCI to income (1) (4,000) — (325) 20 (4,305) Balance at end of period $ 132,500 $ — $ 5,801 $ (144) $ 138,157 Three Months Ended March 31, 2019 Balance at beginning of period $ (37,348) $ (8,515) $ 1,099 $ (186) $ (44,950) Other comprehensive income (loss) before 47,711 — (296) — 47,415 Amounts reclassified from AOCI to income (1) 79 351 (290) 15 155 Balance at end of period $ 10,442 $ (8,164) $ 513 $ (171) $ 2,620 (1) See tables below for details about reclassifications to income. The following table summarizes the significant amounts reclassified out of each component of AOCI: Details about AOCI Components Amount Reclassified Affected Line Item in the Three Months Ended (dollars in thousands) 2020 2019 Unrealized gains and losses on $ 5,174 $ (103) Debt securities gains (losses), net (1,174) 24 Income tax (expense) benefit $ 4,000 $ (79) Net income Unrealized gains and losses on $ — $ (457) Interest income (expense) — 106 Income tax (expense) benefit $ — $ (351) Net income Gains and losses on cash flow hedges $ 431 $ 385 Interest income (expense) (106) (95) Income tax (expense) benefit $ 325 $ 290 Net income Amortization of defined benefit Actuarial gains (losses) $ (27) $ (20) Salaries and employee benefits 7 5 Income tax (expense) benefit $ (20) $ (15) Net income Total reclassifications for the period $ 4,305 $ (155) Net income |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION At March 31, 2020, Old National had 3.2 million shares remaining available for issuance under the Company’s Amended and Restated 2008 Incentive Compensation Plan. The granting of awards to key employees is typically in the form of restricted stock awards or units. Restricted Stock Awards Old National granted 121 thousand time-based restricted stock awards to certain key officers during the three months ended March 31, 2020, with shares vesting generally over a 36 month period. Compensation expense is recognized on a straight-line basis over the vesting period. Shares are subject to certain restrictions and risk of forfeiture by the participants. At March 31, 2020, unrecognized compensation expense was estimated to be $5.4 million for unvested restricted stock awards. The cost is expected to be recognized over a weighted-average period of 2.2 years. Old National recorded share-based compensation expense, net of tax, related to restricted stock awards of $0.7 million during the three months ended March 31, 2020, compared to $0.6 million during the three months ended March 31, 2019. Restricted Stock Units Old National granted 210 thousand shares of performance based restricted stock units to certain key officers during the three months ended March 31, 2020, with shares vesting at the end of a 36 month period based on the achievement of certain targets. For certain awards, the level of performance could increase or decrease the number of shares earned. Compensation expense is recognized on a straight-line basis over the vesting period. Shares are subject to certain restrictions and risk of forfeiture by the participants. At March 31, 2020, unrecognized compensation expense was estimated to be $5.9 million. The cost is expected to be recognized over a weighted-average period of 2.2 years. Old National recorded share-based compensation expense, net of tax, related to restricted stock units of $1.4 million during the three months ended March 31, 2020, compared to $0.8 million during the three months ended March 31, 2019. Stock Options Old National has not granted stock options since 2009. However, Old National did acquire stock options and stock appreciation rights through prior year acquisitions. Old National recorded no incremental expense associated with the conversion of these options and stock appreciation rights. At March 31, 2020, 50 thousand stock appreciation rights remained outstanding. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Following is a summary of the major items comprising the differences in taxes from continuing operations computed at the federal statutory rate and as recorded in the consolidated statements of income: Three Months Ended (dollars in thousands) 2020 2019 Provision at statutory rate of 21% $ 5,372 $ 14,570 Tax-exempt income: Tax-exempt interest (2,632) (2,531) Section 291/265 interest disallowance 73 111 Company-owned life insurance income (647) (669) Tax-exempt income (3,206) (3,089) State income taxes (8) 1,999 Interim period effective rate adjustment 3,267 688 Tax credit investments - federal (1,902) (420) Other, net (584) (644) Income tax expense $ 2,939 $ 13,104 Effective tax rate 11.5 % 18.9 % In accordance with ASC 740-270, Accounting for Interim Reporting , the provision for income taxes was recorded at March 31, 2020 and 2019 based on the current estimate of the effective annual rate. The lower effective tax rate during the three months ended March 31, 2020 when compared to the three months ended March 31, 2019 is primarily the result of an increase in federal tax credits available. Unrecognized Tax Benefits Old National has an immaterial amount of unrecognized tax benefits. Old National is currently under audit by the Internal Revenue Service. Old National expects the total amount of unrecognized tax benefits to be reduced to zero after the audit is finalized. Net Deferred Tax Assets Significant components of net deferred tax assets (liabilities) were as follows: (dollars in thousands) March 31, December 31, 2019 Deferred Tax Assets Allowance for loan losses, net of recapture $ 28,603 $ 14,179 Benefit plan accruals 13,268 19,673 Alternative minimum tax credit 1,272 1,272 Net operating loss carryforwards 21,575 25,336 Federal tax credits 3,238 — Deferred gain on securities 3,339 3,754 Acquired loans 15,341 16,784 Operating lease liabilities 25,591 26,503 Tax credit investments and other partnerships 2,808 1,765 Other real estate owned 143 141 Other, net 790 591 Total deferred tax assets 115,968 109,998 Deferred Tax Liabilities Purchase accounting (18,187) (17,564) Loan servicing rights (5,989) (6,289) Premises and equipment (8,139) (12,167) Prepaid expenses (973) (973) Operating lease right-of-use assets (23,285) (25,448) Unrealized gains on available-for-sale investment securities (38,162) (15,751) Unrealized gains on hedges (1,889) (78) Other, net (1,768) (2,023) Total deferred tax liabilities (98,392) (80,293) Net deferred tax assets $ 17,576 $ 29,705 Through the acquisition of Anchor (WI) in the second quarter of 2016 and Lafayette Savings Bank in the fourth quarter of 2014, both former thrifts, Old National Bank’s retained earnings at March 31, 2020 include base-year bad debt reserves, created for tax purposes prior to 1988, totaling $52.8 million. Of this total, $50.9 million was acquired from Anchor (WI), and $1.9 million was acquired from Lafayette Savings Bank. Base-year reserves are subject to recapture in the unlikely event that Old National Bank (1) makes distributions in excess of current and accumulated earnings and profits, as calculated for federal income tax purposes, (2) redeems its stock, or (3) liquidates. Old National Bank has no intention of making such a nondividend distribution. Accordingly, under current accounting principles, a related deferred income tax liability of $13.0 million has not been recognized. No valuation allowance was recorded at March 31, 2020 or December 31, 2019 because, based on current expectations, Old National believes it will generate sufficient income in future years to realize deferred tax assets. Old National has federal net operating loss carryforwards totaling $60.1 million at March 31, 2020 and $78.5 million at December 31, 2019. This federal net operating loss was acquired from the acquisition of Anchor (WI) in 2016. If not used, the federal net operating loss carryforwards will expire from 2029 to 2033. Old National has alternative minimum tax credit carryforwards subject to section 382 limitations and included in net deferred tax assets totaling $1.3 million at March 31, 2020 and $1.3 million at December 31, 2019. The enactment of H.R. 1 eliminated the parallel tax system known as the alternative minimum tax and allowed any existing alternative minimum tax credits to be used to reduce regular tax or be refunded from 2018 to 2021. Old National has recorded state net operating loss carryforwards totaling $150.3 million at March 31, 2020 and $148.4 million at December 31, 2019. If not used, the state net operating loss carryforwards will expire from 2024 to 2035. Old National had federal tax credit carryforwards of $3.2 million at March 31, 2020. The federal and recorded state net operating loss carryforwards are subject to an annual limitation under Internal Revenue Code section 382. Old National believes that all of the recorded net operating loss carryforwards will be used prior to expiration. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS As part of our overall interest rate risk management, Old National uses derivative instruments, including interest rate swaps, collars, caps, and floors. The notional amount does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements. The notional amount of these derivative instruments was $905.5 million at March 31, 2020 and $665.5 million at December 31, 2019. These derivative financial instruments at March 31, 2020 consisted of $380.5 million notional amount of receive-fixed, pay-variable interest rate swaps on certain of its FHLB advances, $125.0 million notional amount of pay-fixed, receive-variable interest rate swaps on certain of its FHLB advances, and $400.0 million notional amount interest rate collars and floors related to variable-rate commercial loan pools. Derivative financial instruments at December 31, 2019 consisted of $130.5 million notional amount of receive-fixed, pay-variable interest rate swaps on certain of its FHLB advances, $25.0 million notional amount of pay-fixed, receive-variable interest rate swaps on certain of its FHLB advances, and $510.0 million notional amount interest rate collars and floors related to variable-rate commercial loan pools. These hedges were entered into to manage interest rate risk. Derivative instruments are recognized on the balance sheet at their fair value and are not reported on a net basis. In accordance with ASC 815-20-35-1, subsequent changes in fair value for a hedging instrument that has been designated and qualifies as part of a hedging relationship should be accounted for in the following manner: Cash flow hedges : changes in fair value are recognized as a component in other comprehensive income. Fair value hedges : changes in fair value are recognized concurrently in earnings. Consistent with this guidance, as long as a hedging instrument is designated and the results of the effectiveness testing support that the instrument qualifies for hedge accounting treatment, 100% of the periodic changes in fair value of the hedging instrument are accounted for as outlined above. This is the case whether or not economic mismatches exist in the hedging relationship. As a result, there is no periodic measurement or recognition of ineffectiveness. Rather, the full impact of hedge gains and losses is recognized in the period in which the hedged transactions impact earnings. While separate measurement and presentation of ineffectiveness is eliminated, paragraph 815-20-45-1A requires the change in fair value of the hedging instrument that is included in the assessment of hedge effectiveness be presented in the same income statement line item that is used to present the earnings effect of the hedged item. Commitments to fund certain mortgage loans (interest rate lock commitments) and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. These derivative contracts do not qualify for hedge accounting. At March 31, 2020, the notional amount of the interest rate lock commitments was $371.6 million and forward commitments were $388.8 million. At December 31, 2019, the notional amount of the interest rate lock commitments was $65.7 million and forward commitments were $101.6 million. It is our practice to enter into forward commitments for the future delivery of residential mortgage loans to third party investors when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from our commitment to fund the loans. Old National also enters into derivative instruments for the benefit of its customers. The notional amounts of these customer derivative instruments and the offsetting counterparty derivative instruments were $1.380 billion at March 31, 2020. The notional amounts of these customer derivative instruments and the offsetting counterparty derivative instruments were $1.298 billion at December 31, 2019. These derivative contracts do not qualify for hedge accounting. These instruments include interest rate swaps, caps, and collars. Commonly, Old National will economically hedge significant exposures related to these derivative contracts entered into for the benefit of customers by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms. Old National enters into derivative financial instruments as part of its foreign currency risk management strategies. These derivative instruments consist of foreign currency forward contracts to accommodate the business needs of its customers. Old National does not designate these foreign currency forward contracts for hedge accounting treatment. The notional amounts of these foreign currency forward contracts and the offsetting counterparty derivative instruments were $5.3 million at March 31, 2020 and $8.2 million at December 31, 2019. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. Old National’s exposure is limited to the replacement value of the contracts rather than the notional, principal, or contract amounts. There are provisions in our agreements with the counterparties that allow for certain unsecured credit exposure up to an agreed threshold. Exposures in excess of the agreed thresholds are collateralized. In addition, we minimize credit risk through credit approvals, limits, and monitoring procedures. Amounts reported in AOCI related to cash flow hedges will be reclassified to interest income or interest expense as interest payments are received or paid on Old National’s derivative instruments. During the next 12 months, we estimate that $6.7 million will be reclassified to interest income and $0.9 million will be reclassified to interest expense. The following table summarizes the fair value of derivative financial instruments utilized by Old National: (dollars in thousands) Balance Fair Balance Fair March 31, 2020 Derivatives designated as hedging instruments Interest rate contracts Other assets $ 21,630 Other liabilities $ 1,443 Total derivatives designated as hedging instruments $ 21,630 $ 1,443 Derivatives not designated as hedging instruments Interest rate contracts (1) Other assets $ 114,839 Other liabilities $ 26,630 Mortgage contracts Other assets 13,081 Other liabilities 6,913 Foreign currency contracts Other assets 323 Other liabilities 233 Total derivatives not designated as hedging instruments $ 128,243 $ 33,776 Total $ 149,873 $ 35,219 December 31, 2019 Derivatives designated as hedging instruments Interest rate contracts Other assets $ 7,157 Other liabilities $ 1,046 Total derivatives designated as hedging instruments $ 7,157 $ 1,046 Derivatives not designated as hedging instruments Interest rate contracts (1) Other assets $ 42,224 Other liabilities $ 10,883 Mortgage contracts Other assets 1,702 Other liabilities 354 Foreign currency contracts Other assets 218 Other liabilities 110 Total derivatives not designated as hedging instruments $ 44,144 $ 11,347 Total $ 51,301 $ 12,393 (1) The fair values of counterparty interest rate swaps are zero due to the settlement of centrally-cleared variation margin rules. The net adjustment was $88.9 million as of March 31, 2020 and $31.6 million as of December 31, 2019. Summary information about the interest rate swaps designated as fair value hedges is as follows: (dollars in thousands) March 31, December 31, Notional amounts $ 380,500 $ 130,500 Weighted average pay rates 0.33 % 1.82 % Weighted average receive rates 1.33 % 2.20 % Weighted average maturity (in years) 2.9 2.8 Fair value of swaps $ 10,797 $ 1,555 The effect of derivative instruments in fair value hedging relationships on the consolidated statements of income were as follows: (dollars in thousands) Location of Gain or Gain (Loss) Recognized in Income on Derivative Hedged Items Location of Gain or Gain (Loss) Recognized in Income on Related Hedged Items Derivatives in Three Months Ended March 31, 2020 Interest rate contracts Interest income/(expense) $ 9,241 Fixed-rate debt Interest income/(expense) $ (9,228) Three Months Ended March 31, 2019 Interest rate contracts Interest income/(expense) $ 6,552 Fixed-rate debt Interest income/(expense) $ (6,548) Summary information about the interest rate swaps designated as cash flow hedges is as follows: (dollars in thousands) March 31, December 31, Notional amounts $ 125,000 $ 25,000 Weighted average pay rates 1.11 % 3.52 % Weighted average receive rates 1.46 % 1.93 % Weighted average maturity (in years) 1.8 2.1 Unrealized gains (losses) $ (1,443) $ (954) Old National has designated its interest rate collars as cash flow hedges. The structure of these instruments is such that Old National pays the counterparty an incremental amount if the collar index exceeds the cap rate. Conversely, Old National receives an incremental amount if the index falls below the floor rate. No payments are required if the collar index falls between the cap and floor rates. Summary information about the collars designated as cash flow hedges is as follows: (dollars in thousands) March 31, December 31, Notional amounts $ 300,000 $ 300,000 Weighted average cap rates 3.21 % 3.21 % Weighted average floor rates 2.21 % 2.21 % Weighted average rates 1.25 % 1.70 % Weighted average maturity (in years) 1.6 1.9 Unrealized gains (losses) $ 9,214 $ 3,691 Old National has designated its interest rate floor transactions as cash flow hedges. The structure of these instruments is such that Old National receives an incremental amount if the index falls below the floor strike rate. No payments are required if the index remains above the floor strike rate. Summary information about the interest rate floor transactions designated as cash flow hedges is as follows: (dollars in thousands) March 31, Notional amounts $ 100,000 Weighted average floor strike rate 0.75 % Weighted average rates 0.99 % Weighted average maturity (in years) 3.0 Unrealized gains (losses) $ 1,619 The structure of Old National's interest rate floor spread transactions at December 31, 2019 was such that Old National received an incremental amount if the index fell below the purchased floor strike rate. Old National paid an incremental amount if the index fell below the sold floor rate. Floor corridor protection was limited to the spread between the purchased floor strike rate and the sold floor rate. No payments were required if the index remained above the purchased floor strike rate. Old National terminated these interest rate floor spread transactions during the first quarter of 2020. Summary information about the floor spread transactions designated as cash flow hedges at December 31, 2019 was as follows: (dollars in thousands) December 31, Notional amounts $ 210,000 Weighted average purchased floor strike rate 2.00 % Weighted average sold floor rate 1.00 % Weighted average rate 1.70 % Weighted average maturity (in years) 2.1 Unrealized gains (losses) $ 1,820 The effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income were as follows: Three Months Ended Three Months Ended (dollars in thousands) 2020 2019 2020 2019 Derivatives in Location of Gain or Gain (Loss) Gain (Loss) Interest rate contracts Interest income/(expense) $ 7,803 $ (392) $ 431 $ 385 The effect of derivatives not designated as hedging instruments on the consolidated statements of income were as follows: Three Months Ended (dollars in thousands) 2020 2019 Derivatives Not Designated as Location of Gain or (Loss) Gain (Loss) Interest rate contracts (1) Other income/(expense) $ (466) $ (37) Mortgage contracts Mortgage banking revenue 4,820 1,022 Foreign currency contracts Other income/(expense) (19) 3 Total $ 4,335 $ 988 (1) Includes the valuation differences between the customer and offsetting swaps. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES COVID-19 In December 2019, a novel strain of coronavirus, COVID-19, was reported in Wuhan, China. The COVID-19 virus continues to aggressively spread globally and has spread to over 185 countries, including all 50 states in the United States. A prolonged COVID-19 outbreak, or any other epidemic that harms the global economy, U.S. economy, or the economies in which we operate could adversely affect our operations. While the spread of the COVID-19 virus has minimally impacted our operations as of March 31, 2020, it has caused significant economic disruption throughout the United States as state and local governments issued “shelter at home” orders along with the closing of non-essential businesses. The potential financial impact is unknown at this time. However, if these actions are sustained, it may adversely impact several industries within our geographic footprint and impair the ability of Old National's customers to fulfill their contractual obligations to the Company. This could cause Old National to experience a material adverse effect on our business operations, asset valuations, financial condition, and results of operations. Material adverse impacts may include all or a combination of valuation impairments on Old National's intangible assets, investments, loans, loan servicing rights, deferred tax assets, or counter-party risk derivatives. Litigation In the normal course of business, Old National Bancorp and its subsidiaries have been named, from time to time, as defendants in various legal actions. Certain of the actual or threatened legal actions may include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. Old National contests liability and/or the amount of damages as appropriate in each pending matter. In view of the inherent difficulty of predicting the outcome of such matters, particularly in cases where claimants seek substantial or indeterminate damages or where investigations and proceedings are in the early stages, Old National cannot predict with certainty the loss or range of loss, if any, related to such matters, how or if such matters will be resolved, when they will ultimately be resolved, or what the eventual settlement, or other relief, if any, might be. Subject to the foregoing, Old National believes, based on current knowledge and after consultation with counsel, that the outcome of such pending matters will not have a material adverse effect on the consolidated financial condition of Old National, although the outcome of such matters could be material to Old National’s operating results and cash flows for a particular future period, depending on, among other things, the level of Old National’s revenues or income for such period. Old National will accrue for a loss contingency if (1) it is probable that a future event will occur and confirm the loss and (2) the amount of the loss can be reasonably estimated. Old National is not currently involved in any material litigation. Credit-Related Financial Instruments In the normal course of business, Old National’s banking affiliates have entered into various agreements to extend credit, including loan commitments of $2.898 billion and standby letters of credit of $82.4 million at March 31, 2020. At March 31, 2020, approximately $2.621 billion of the loan commitments had fixed rates and $277.0 million had floating rates, with the floating interest rates ranging from 0% to 13%. At December 31, 2019, loan commitments totaled $2.779 billion and standby letters of credit totaled $87.8 million. These commitments are not reflected in the consolidated financial statements. The allowance for unfunded loan commitments totaled $9.0 million at March 31, 2020 and $2.7 million at December 31, 2019. The increase in allowance for unfunded loan commitments at March 31, 2020 included a cumulative-effect adjustment of $4.5 million due to the adoption of ASC 326. See Note 2 for additional information about CECL for unfunded loan commitments. Old National had credit extensions with various unaffiliated banks related to letter of credit commitments issued on behalf of Old National’s clients totaling $8.7 million at March 31, 2020 and December 31, 2019. Old National provided collateral to the unaffiliated banks to secure credit extensions totaling $7.7 million at March 31, 2020 and December 31, 2019. Old National did not provide collateral for the remaining credit extensions. Visa Class B Restricted Shares In 2008, Old National received Visa Class B restricted shares as part of Visa’s initial public offering. These shares are transferable only under limited circumstances until they can be converted into the publicly traded Class A common shares. This conversion will not occur until the final settlement of certain litigation for which Visa is indemnified by the holders of Visa’s Class B shares, including Old National. Visa funded an escrow account from its initial public offering to settle these litigation claims. Increases in litigation claims requiring Visa to fund the escrow account due to insufficient funds will result in a reduction of the conversion ratio of each Visa Class B share |
Financial Guarantees
Financial Guarantees | 3 Months Ended |
Mar. 31, 2020 | |
Guarantees and Product Warranties [Abstract] | |
Financial Guarantees | FINANCIAL GUARANTEES Old National holds instruments, in the normal course of business with clients, that are considered financial guarantees in accordance with FASB ASC 460-10 (FIN 45, Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others ) , which requires Old National to record the instruments at fair value. Standby letters of credit guarantees are issued in connection with agreements made by clients to counterparties. Standby letters of credit are contingent upon failure of the client to perform the terms of the underlying contract. Credit risk associated with standby letters of credit is essentially the same as that associated with extending loans to clients and is subject to normal credit policies. The term of these standby letters of credit is typically one year or less. At March 31, 2020, the notional amount of standby letters of credit was $82.4 million, which represented the maximum amount of future funding requirements, and the carrying value was $0.5 million. At December 31, 2019, the notional amount of standby letters of credit was $87.8 million, which represented the maximum amount of future funding requirements, and the carrying value was $0.6 million. Old National is a party in risk participation transactions of interest rate swaps, which had total notional amount of $50.1 million at March 31, 2020. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: • Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. • Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Old National used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Investment securities : The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Discounted cash flows are calculated using swap and LIBOR curves plus spreads that adjust for loss severities, volatility, credit risk, and optionality. During times when trading is more liquid, broker quotes are used (if available) to validate the model. Rating agency and industry research reports as well as defaults and deferrals on individual securities are reviewed and incorporated into the calculations. Residential loans held for sale : The fair value of loans held for sale is determined using quoted prices for a similar asset, adjusted for specific attributes of that loan (Level 2). Derivative financial instruments : The fair values of derivative financial instruments are based on derivative valuation models using market data inputs as of the valuation date (Level 2). Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which we have elected the fair value option, are summarized below: Fair Value Measurements at March 31, 2020 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Financial Assets Equity securities $ 6,870 $ 6,870 $ — $ — Investment securities available-for-sale: U.S. Treasury 11,733 11,733 — — U.S. government-sponsored entities and agencies 519,171 — 519,171 — Mortgage-backed securities - Agency 3,210,000 — 3,210,000 — States and political subdivisions 1,302,395 — 1,302,395 — Pooled trust preferred securities 7,422 — — 7,422 Other securities 309,304 31,670 277,634 — Residential loans held for sale 54,209 — 54,209 — Derivative assets 149,873 — 149,873 — Financial Liabilities Derivative liabilities 35,219 — 35,219 — Fair Value Measurements at December 31, 2019 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Financial Assets Equity securities $ 6,842 $ 6,842 $ — $ — Investment securities available-for-sale: U.S. Treasury 17,682 17,682 — — U.S. government-sponsored entities and agencies 592,984 — 592,984 — Mortgage-backed securities - Agency 3,183,861 — 3,183,861 — States and political subdivisions 1,275,643 — 1,275,603 40 Pooled trust preferred securities 8,222 — — 8,222 Other securities 306,699 31,169 275,530 — Residential loans held for sale 46,898 — 46,898 — Derivative assets 51,301 — 51,301 — Financial Liabilities Derivative liabilities 12,393 — 12,393 — The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3): (dollars in thousands) Pooled Trust States and Three Months Ended March 31, 2020 Balance at beginning of period $ 8,222 $ 40 Accretion of discount 4 — Sales/payments received (17) (40) Decrease in fair value of securities (787) — Balance at end of period $ 7,422 $ — Three Months Ended March 31, 2019 Balance at beginning of period $ 8,495 $ 4,108 Accretion of discount 4 — Sales/payments received (15) (35) Decrease in fair value of securities (361) — Transfers out of Level 3 — (4,033) Balance at end of period $ 8,123 $ 40 The accretion of discounts on securities in the table above is included in interest income. The decrease in the fair value of securities in the table above is included in the unrealized holding gains (losses) for the period in the statement of other comprehensive income. A decrease in fair value is reflected in the balance sheet as a decrease in the fair value of investment securities available-for-sale, a decrease in accumulated other comprehensive income, which is included in shareholders’ equity, and an increase in other assets related to the tax impact. During the three months ended March 31, 2019, Old National received third party pricing on a $4.0 million state and political subdivisions security and transferred it out of Level 3. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy: (dollars in thousands) Fair Value Valuation Techniques Unobservable Input Range (Weighted Average) (4) March 31, 2020 Pooled trust preferred securities $ 7,422 Discounted cash flow Constant prepayment rate (1) 0.00% Additional asset defaults (2) 6.1% - 9.1% (7.1%) Expected asset recoveries (3) 0.0% - 18.6% (5.8%) December 31, 2019 Pooled trust preferred securities $ 8,222 Discounted cash flow Constant prepayment rate (1) 0.00% Additional asset defaults (2) 6.2% - 8.0% (6.8%) Expected asset recoveries (3) 0.0% - 19.1% (6.0%) State and political subdivisions 40 Discounted cash flow No observable inputs N/A Local municipality issuance Old National owns 100% Carried at par (1) Assuming no prepayments. (2) Each currently performing pool asset is assigned a default probability based on the banking environment, which is adjusted for specific issuer evaluation, of 0%, 50%, or 100%. (3) Each currently defaulted pool asset is assigned a recovery probability based on specific issuer evaluation of 0%, 25%, or 100%. (4) Unobservable inputs are weighted by the estimated number of defaults and current performing collateral of the instruments. Significant changes in any of the unobservable inputs used in the fair value measurement in isolation would have resulted in a significant change to the fair value measurement. The pooled trust preferred securities Old National owns are subordinate note classes that rely on an ongoing cash flow stream to support their values. The senior note classes receive the benefit of prepayments to the detriment of subordinate note classes since the ongoing interest cash flow stream is reduced by the early redemption. Generally, a change in prepayment rates or additional pool asset defaults would have an impact that is directionally opposite from a change in the expected recovery of a defaulted pool asset. Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at March 31, 2020 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Collateral Dependent Impaired Loans: Commercial loans $ 11,374 $ — $ — $ 11,374 Commercial real estate loans 27,570 — — 27,570 Foreclosed Assets: Commercial 214 — — 214 Loan servicing rights 23,927 — 23,927 — Impaired commercial and commercial real estate loans that are deemed collateral dependent are valued based on the fair value of the underlying collateral. These estimates are based on the most recently available appraisals with certain adjustments made based on the type of property, age of appraisal, current status of the property, and other related factors to estimate the current value of the collateral. These impaired commercial and commercial real estate loans had a principal amount of $49.5 million, with a valuation allowance of $10.6 million at March 31, 2020. Old National recorded provision expense associated with these loans totaling $6.8 million for the three months ended March 31, 2020. Old National recorded provision expense associated with impaired commercial and commercial real estate loans that were deemed collateral dependent totaling $1.2 million for the three months ended March 31, 2019. Other real estate owned and other repossessed property is measured at fair value less costs to sell on a non-recurring basis and had a net carrying amount of $0.2 million at March 31, 2020. There were write-downs of other real estate owned of $11 thousand for the three months ended March 31, 2020. Old National did not record any write-downs for the three months ended March 31, 2019. Loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded on that tranche so that the servicing asset is carried at fair value. Fair value is determined at a tranche level, based on market prices for comparable mortgage servicing contracts when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes a discount rate, weighted average prepayment speed, and other economic factors that market participants would use in estimating future net servicing income and that can be validated against available market data (Level 2). The valuation allowance for loan servicing rights with impairments at March 31, 2020 totaled $1.4 million. Old National recorded impairments associated with these loan servicing rights totaling $1.4 million during the three months ended March 31, 2020 and impairments of $2 thousand for the three months ended March 31, 2019. Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at December 31, 2019 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Collateral Dependent Impaired Loans: Commercial loans $ 10,361 $ — $ — $ 10,361 Commercial real estate loans 11,610 — — 11,610 Foreclosed Assets: Commercial real estate 21 — — 21 Residential 22 — — 22 Loan servicing rights 4,662 — 4,662 — At December 31, 2019, impaired commercial and commercial real estate loans had a principal amount of $30.9 million, with a valuation allowance of $8.9 million. Other real estate owned and other repossessed property had a net carrying amount of $43 thousand at December 31, 2019. The valuation allowance for loan servicing rights with impairments at December 31, 2019 totaled $31 thousand. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy: (dollars in thousands) Fair Value Valuation Techniques Unobservable Input Range (Weighted Average) (3) March 31, 2020 Collateral Dependent Impaired Loans Commercial loans $ 11,374 Fair value of Discount for type of property, 0% - 80% (42%) collateral age of appraisal, and current status Commercial real estate loans (1) 27,570 Fair value of Discount for type of property, 0% collateral age of appraisal, and current status Foreclosed Assets Commercial real estate (1) 214 Fair value of Discount for type of property, 5% collateral age of appraisal, and current status December 31, 2019 Collateral Dependent Impaired Loans Commercial loans $ 10,361 Fair value of Discount for type of property, 0% - 50% (13%) collateral age of appraisal, and current status Commercial real estate loans (2) 11,610 Fair value of Discount for type of property, 45% collateral age of appraisal, and current status Foreclosed Assets Commercial real estate (2) 21 Fair value of Discount for type of property, 43% collateral age of appraisal, and current status Residential (2) 22 Fair value of Discount for type of property, 21% collateral age of appraisal, and current status (1) There were no commercial real estate loans large enough to require a discount and there was only one foreclosed commercial real estate asset at March 31, 2020, so no range or weighted average is reported. (2) There was only one collateral dependent impaired commercial real estate loan, one foreclosed commercial real estate asset, and one foreclosed residential asset at December 31, 2019, so no range or weighted average is reported. (3) Unobservable inputs were weighted by the relative fair value of the instruments. Financial instruments recorded using fair value option Old National may elect to report most financial instruments and certain other items at fair value on an instrument-by instrument basis with changes in fair value reported in net income. After the initial adoption, the election is made at the acquisition of an eligible financial asset, financial liability, or firm commitment or when certain specified reconsideration events occur. The fair value election may not be revoked once an election is made. Residential loans held for sale Old National has elected the fair value option for residential loans held for sale. For these loans, interest income is recorded in the consolidated statements of income based on the contractual amount of interest income earned on the financial assets (except any that are on nonaccrual status). None of these loans are 90 days or more past due, nor are any on nonaccrual status. Included in the income statement is interest income for loans held for sale totaling $0.4 million for the three months ended March 31, 2020 and $0.2 million for the three months ended March 31, 2019. Old National has elected the fair value option for newly originated conforming fixed-rate and adjustable-rate first mortgage loans held for sale. These loans are intended for sale and are hedged with derivative instruments. Old National has elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplification. The fair value option was not elected for loans held for investment. The difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected was as follows: (dollars in thousands) Aggregate Fair Value Difference Contractual Principal March 31, 2020 Residential loans held for sale $ 54,209 $ 2,952 $ 51,257 December 31, 2019 Residential loans held for sale $ 46,898 $ 1,529 $ 45,369 Accrued interest at period end is included in the fair value of the instruments. The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value: (dollars in thousands) Other Interest Income Interest (Expense) Total Changes Three Months Ended March 31, 2020 Residential loans held for sale $ 1,421 $ 2 $ — $ 1,423 Three Months Ended March 31, 2019 Residential loans held for sale $ 90 $ 5 $ — $ 95 The carrying amounts and estimated fair values of financial instruments not carried at fair value were as follows: Fair Value Measurements at March 31, 2020 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Financial Assets Cash, due from banks, money market, $ 343,177 $ 343,177 $ — $ — Loans, net: Commercial 3,012,704 — — 2,984,123 Commercial real estate 5,226,694 — — 5,184,989 Residential real estate 2,318,214 — — 2,334,673 Consumer credit 1,720,620 — — 1,718,474 Accrued interest receivable 77,810 41 23,744 54,025 Financial Liabilities Deposits: Noninterest-bearing demand deposits $ 4,058,559 $ 4,058,559 $ — $ — Checking, NOW, savings, and money market 8,705,109 8,705,109 — — Time deposits 1,541,694 — 1,563,286 — Federal funds purchased and interbank borrowings 560,770 560,770 — — Securities sold under agreements to repurchase 318,067 318,067 — — FHLB advances 2,130,263 — 2,279,323 — Other borrowings 236,114 — 242,995 — Accrued interest payable 6,113 — 6,113 — Standby letters of credit 459 — — 459 Off-Balance Sheet Financial Instruments Commitments to extend credit $ — $ — $ — $ 15,647 Fair Value Measurements at December 31, 2019 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Financial Assets Cash, due from banks, money market, $ 276,337 $ 276,337 $ — $ — Loans, net: Commercial 2,867,711 — — 2,831,298 Commercial real estate 5,145,204 — — 5,130,848 Residential real estate 2,331,990 — — 2,357,341 Consumer credit 1,718,000 — — 1,676,253 Accrued interest receivable 85,123 15 28,185 56,923 Financial Liabilities Deposits: Noninterest-bearing demand deposits $ 4,042,286 $ 4,042,286 $ — $ — Checking, NOW, savings, and money market 8,828,881 8,828,881 — — Time deposits 1,682,230 — 1,692,569 — Federal funds purchased and interbank borrowings 350,414 350,414 — — Securities sold under agreements to repurchase 327,782 327,782 — — FHLB advances 1,822,847 — 1,875,089 — Other borrowings 243,685 — 254,519 — Accrued interest payable 8,272 — 8,272 — Standby letters of credit 573 — — 573 Off-Balance Sheet Financial Instruments Commitments to extend credit $ — $ — $ — $ 4,302 The methods utilized to measure the fair value of financial instruments at March 31, 2020 and December 31, 2019 represent an approximation of exit price, however, an actual exit price may differ. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS Old National’s revenue from contracts with customers in the scope of Topic 606 is recognized within noninterest income. The consolidated statements of income include all categories of noninterest income. The following table reflects only the categories of noninterest income that are within the scope of Topic 606: Three Months Ended (dollars in thousands) 2020 2019 Wealth management fees $ 8,884 $ 8,535 Service charges on deposit accounts 10,077 10,826 Debit card and ATM fees 4,998 5,503 Investment product fees 5,874 5,271 Other income: Merchant processing fees 804 707 Gain (loss) on other real estate owned (56) 40 Safe deposit box fees 310 411 Insurance premiums and commissions 116 200 Total $ 31,007 $ 31,493 Wealth management fees : Old National earns wealth management fees based upon asset custody and investment management services provided to individual and institutional customers. Most of these customers receive monthly or quarterly billings for services rendered based upon the market value of assets in custody. Fees that are transaction based are recognized at the point in time that the transaction is executed. Service charges on deposit accounts : Old National earns fees from deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees and overdraft fees are recognized at a point in time, since the customer generally has a right to cancel the depository arrangement at any time. The arrangement is considered a day-to-day contract with ongoing renewals and optional purchases, so the duration of the contract does not extend beyond the services already performed. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which Old National satisfies its performance obligation. Debit card and ATM fees : Debit card and ATM fees include ATM usage fees and debit card interchange income. As with the transaction-based fees on deposit accounts, the ATM fees are recognized at the point in time that Old National fulfills the customer’s request. Old National earns interchange fees from cardholder transactions processed through card association networks. Interchange rates are generally set by the card associations based upon purchase volumes and other factors. Interchange fees represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Composition of Loans and Impact of Adoption | The composition of loans by portfolio segment as of December 31, 2019 follows: (dollars in thousands) December 31, 2019 Segment December 31, 2019 Loans: Commercial $ 2,890,296 $ (75,142) $ 2,815,154 Commercial real estate 5,166,792 (277,539) 4,889,253 BBCC N/A 352,681 352,681 Residential real estate 2,334,289 — 2,334,289 Consumer 1,726,147 (1,726,147) N/A Indirect N/A 935,584 935,584 Direct N/A 228,524 228,524 Home equity N/A 562,039 562,039 Total $ 12,117,524 $ — $ 12,117,524 Allowance: Commercial $ (22,585) $ 1,226 $ (21,359) Commercial real estate (21,588) 1,053 (20,535) BBCC N/A (2,279) (2,279) Residential real estate (2,299) — (2,299) Consumer (8,147) 8,147 N/A Indirect N/A (5,319) (5,319) Direct N/A (1,863) (1,863) Home equity N/A (965) (965) Total $ (54,619) $ — $ (54,619) The following table illustrates the impact of adoption of the ASU: (dollars in thousands) December 31, 2019 After Reclassifications Impact of January 1, 2020 Assets: Loans, net of unearned income: Commercial $ 2,815,154 $ 2,679 $ 2,817,833 Commercial real estate 4,889,253 1,637 4,890,890 BBCC 352,681 33 352,714 Residential real estate 2,334,289 105 2,334,394 Indirect 935,584 10 935,594 Direct 228,524 2 228,526 Home equity 562,039 12 562,051 Total 12,117,524 4,478 12,122,002 Allowance: Commercial (21,359) (7,150) (28,509) Commercial real estate (20,535) (25,548) (46,083) BBCC (2,279) (3,702) (5,981) Residential real estate (2,299) (6,986) (9,285) Indirect (5,319) 1,669 (3,650) Direct (1,863) 1,059 (804) Home equity (965) (689) (1,654) Total allowance for credit losses on loans (54,619) (41,347) (95,966) Net loans $ 12,062,905 $ (36,869) $ 12,026,036 Net deferred tax assets $ 29,705 $ 10,268 $ 39,973 Liabilities: Allowance for credit losses on unfunded loan commitments $ 2,656 $ 4,549 $ 7,205 Shareholders' equity: Retained earnings $ 682,185 $ (31,150) $ 651,035 December 31, 2019 Credit December 31, 2019 Impact of January 1, 2020 Statement Risk After ASC 326 Post-ASC 326 (dollars in thousands) Balance Reclassifications Reclassifications Adoption Adoption Loans: Commercial $ 2,890,296 $ (75,142) $ 2,815,154 $ 2,679 $ 2,817,833 Commercial real estate 5,166,792 (277,539) 4,889,253 1,637 4,890,890 BBCC N/A 352,681 352,681 33 352,714 Residential real estate 2,334,289 — 2,334,289 105 2,334,394 Consumer 1,726,147 (1,726,147) N/A N/A N/A Indirect N/A 935,584 935,584 10 935,594 Direct N/A 228,524 228,524 2 228,526 Home equity N/A 562,039 562,039 12 562,051 Total $ 12,117,524 $ — $ 12,117,524 $ 4,478 $ 12,122,002 Allowance: Commercial $ (22,585) $ 1,226 $ (21,359) $ (7,150) $ (28,509) Commercial real estate (21,588) 1,053 (20,535) (25,548) (46,083) BBCC N/A (2,279) (2,279) (3,702) (5,981) Residential real estate (2,299) — (2,299) (6,986) (9,285) Consumer (8,147) 8,147 N/A N/A N/A Indirect N/A (5,319) (5,319) 1,669 (3,650) Direct N/A (1,863) (1,863) 1,059 (804) Home equity N/A (965) (965) (689) (1,654) Total $ (54,619) $ — $ (54,619) $ (41,347) $ (95,966) |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Value of Available-for-Sale Investment Securities Portfolio | The following table summarizes the amortized cost, fair value, and allowance for credit losses of the available-for-sale investment securities portfolio and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income (loss): (dollars in thousands) Amortized Unrealized Unrealized Allowance for Fair March 31, 2020 Available-for-Sale U.S. Treasury $ 11,379 $ 354 $ — $ — $ 11,733 U.S. government-sponsored entities and agencies 515,217 3,954 — — 519,171 Mortgage-backed securities - Agency 3,089,212 121,282 (494) — 3,210,000 States and political subdivisions 1,251,515 51,841 (961) — 1,302,395 Pooled trust preferred securities 13,798 — (6,376) — 7,422 Other securities 308,242 5,929 (4,867) — 309,304 Total available-for-sale securities $ 5,189,363 $ 183,360 $ (12,698) $ — $ 5,360,025 December 31, 2019 Available-for-Sale U.S. Treasury $ 17,567 $ 117 $ (2) $ — $ 17,682 U.S. government-sponsored entities and agencies 596,595 1,027 (4,638) — 592,984 Mortgage-backed securities - Agency 3,151,550 41,363 (9,052) — 3,183,861 States and political subdivisions 1,232,497 44,193 (1,047) — 1,275,643 Pooled trust preferred securities 13,811 — (5,589) — 8,222 Other securities 301,189 6,842 (1,332) — 306,699 Total available-for-sale securities $ 5,313,209 $ 93,542 $ (21,660) $ — $ 5,385,091 |
Schedule of Proceeds from Sales or Calls and Realized Gain and Losses of Available-for-Sale Investment Securities and Other Securities | Proceeds from sales or calls of available-for-sale investment securities and the resulting realized gains and realized losses were as follows: Three Months Ended (dollars in thousands) 2020 2019 Proceeds from sales of available-for-sale debt securities $ 236,410 $ 8,681 Proceeds from calls of available-for-sale debt securities 163,771 23,685 Total $ 400,181 $ 32,366 Realized gains on sales of available-for-sale debt securities $ 5,595 $ 71 Realized gains on calls of available-for-sale debt securities 13 3 Realized losses on sales of available-for-sale debt securities (409) (148) Realized losses on calls of available-for-sale debt securities (25) (29) Debt securities gains (losses), net $ 5,174 $ (103) |
Expected Maturities of Investment Securities Portfolio | Weighted average yield is based on amortized cost. March 31, 2020 (dollars in thousands) Amortized Fair Weighted Maturity Available-for-Sale Within one year $ 741,828 $ 762,452 1.82 % One to five years 2,591,483 2,691,307 2.73 Five to ten years 592,020 609,108 3.41 Beyond ten years 1,264,032 1,297,158 3.24 Total $ 5,189,363 $ 5,360,025 2.80 % |
Available-for-Sale Investment Securities with Unrealized Losses by Aggregated Major Security Type and Length of Time in Continuous Unrealized Loss Position | The following table summarizes the available-for-sale investment securities with unrealized losses for which an allowance for credit losses has not been recorded by aggregated major security type and length of time in a continuous unrealized loss position: Less than 12 months 12 months or longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Losses March 31, 2020 Available-for-Sale Mortgage-backed securities - Agency $ 66,182 $ (295) $ 13,308 $ (199) $ 79,490 $ (494) States and political subdivisions 75,669 (961) 465 — 76,134 (961) Pooled trust preferred securities — — 7,422 (6,376) 7,422 (6,376) Other securities 101,144 (2,907) 24,690 (1,960) 125,834 (4,867) Total available-for-sale $ 242,995 $ (4,163) $ 45,885 $ (8,535) $ 288,880 $ (12,698) December 31, 2019 Available-for-Sale U.S. Treasury $ 999 $ (2) $ — $ — $ 999 $ (2) U.S. government-sponsored entities 357,647 (4,638) — — 357,647 (4,638) Mortgage-backed securities - Agency 786,245 (6,122) 212,056 (2,930) 998,301 (9,052) States and political subdivisions 120,166 (1,016) 7,006 (31) 127,172 (1,047) Pooled trust preferred securities — — 8,222 (5,589) 8,222 (5,589) Other securities 30,765 (182) 87,066 (1,150) 117,831 (1,332) Total available-for-sale $ 1,295,822 $ (11,960) $ 314,350 $ (9,700) $ 1,610,172 $ (21,660) |
Trust Preferred Securities | The table below summarizes the relevant characteristics of our pooled trust preferred securities as well as our single issuer trust preferred securities that are included in the “other securities” category in this footnote. Each of the pooled trust preferred securities support a more senior tranche of security holders. Both pooled trust preferred securities have experienced credit defaults. However, these securities have excess subordination and are not other-than-temporarily impaired as a result of their class hierarchy, which provides more loss protection. Trust preferred securities March 31, 2020 (dollars in thousands) Class Lowest Amortized Fair Unrealized # of Issuers Actual Expected Excess Pooled trust preferred securities: Pretsl XXVII LTD B B $ 4,270 $ 2,192 $ (2,078) 32/41 14.4% 11.2% 33.5% Trapeza Ser 13A A2A BBB 9,528 5,230 (4,298) 39/41 4.5% 6.6% 51.6% 13,798 7,422 (6,376) Single Issuer trust preferred securities: JP Morgan Chase & Co BBB- 4,800 3,600 (1,200) Total $ 18,598 $ 11,022 $ (7,576) (1) Lowest rating for the security provided by any nationally recognized credit rating agency. |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Composition of Loans and Impact of Adoption | The composition of loans by portfolio segment as of December 31, 2019 follows: (dollars in thousands) December 31, 2019 Segment December 31, 2019 Loans: Commercial $ 2,890,296 $ (75,142) $ 2,815,154 Commercial real estate 5,166,792 (277,539) 4,889,253 BBCC N/A 352,681 352,681 Residential real estate 2,334,289 — 2,334,289 Consumer 1,726,147 (1,726,147) N/A Indirect N/A 935,584 935,584 Direct N/A 228,524 228,524 Home equity N/A 562,039 562,039 Total $ 12,117,524 $ — $ 12,117,524 Allowance: Commercial $ (22,585) $ 1,226 $ (21,359) Commercial real estate (21,588) 1,053 (20,535) BBCC N/A (2,279) (2,279) Residential real estate (2,299) — (2,299) Consumer (8,147) 8,147 N/A Indirect N/A (5,319) (5,319) Direct N/A (1,863) (1,863) Home equity N/A (965) (965) Total $ (54,619) $ — $ (54,619) The following table illustrates the impact of adoption of the ASU: (dollars in thousands) December 31, 2019 After Reclassifications Impact of January 1, 2020 Assets: Loans, net of unearned income: Commercial $ 2,815,154 $ 2,679 $ 2,817,833 Commercial real estate 4,889,253 1,637 4,890,890 BBCC 352,681 33 352,714 Residential real estate 2,334,289 105 2,334,394 Indirect 935,584 10 935,594 Direct 228,524 2 228,526 Home equity 562,039 12 562,051 Total 12,117,524 4,478 12,122,002 Allowance: Commercial (21,359) (7,150) (28,509) Commercial real estate (20,535) (25,548) (46,083) BBCC (2,279) (3,702) (5,981) Residential real estate (2,299) (6,986) (9,285) Indirect (5,319) 1,669 (3,650) Direct (1,863) 1,059 (804) Home equity (965) (689) (1,654) Total allowance for credit losses on loans (54,619) (41,347) (95,966) Net loans $ 12,062,905 $ (36,869) $ 12,026,036 Net deferred tax assets $ 29,705 $ 10,268 $ 39,973 Liabilities: Allowance for credit losses on unfunded loan commitments $ 2,656 $ 4,549 $ 7,205 Shareholders' equity: Retained earnings $ 682,185 $ (31,150) $ 651,035 December 31, 2019 Credit December 31, 2019 Impact of January 1, 2020 Statement Risk After ASC 326 Post-ASC 326 (dollars in thousands) Balance Reclassifications Reclassifications Adoption Adoption Loans: Commercial $ 2,890,296 $ (75,142) $ 2,815,154 $ 2,679 $ 2,817,833 Commercial real estate 5,166,792 (277,539) 4,889,253 1,637 4,890,890 BBCC N/A 352,681 352,681 33 352,714 Residential real estate 2,334,289 — 2,334,289 105 2,334,394 Consumer 1,726,147 (1,726,147) N/A N/A N/A Indirect N/A 935,584 935,584 10 935,594 Direct N/A 228,524 228,524 2 228,526 Home equity N/A 562,039 562,039 12 562,051 Total $ 12,117,524 $ — $ 12,117,524 $ 4,478 $ 12,122,002 Allowance: Commercial $ (22,585) $ 1,226 $ (21,359) $ (7,150) $ (28,509) Commercial real estate (21,588) 1,053 (20,535) (25,548) (46,083) BBCC N/A (2,279) (2,279) (3,702) (5,981) Residential real estate (2,299) — (2,299) (6,986) (9,285) Consumer (8,147) 8,147 N/A N/A N/A Indirect N/A (5,319) (5,319) 1,669 (3,650) Direct N/A (1,863) (1,863) 1,059 (804) Home equity N/A (965) (965) (689) (1,654) Total $ (54,619) $ — $ (54,619) $ (41,347) $ (95,966) |
Schedule of Composition of Loans | The composition of loans by portfolio segment follows: (dollars in thousands) March 31, January 1, Commercial (1) $ 2,844,465 $ 2,817,833 Commercial real estate 5,118,439 4,890,890 BBCC 367,139 352,714 Residential real estate 2,327,851 2,334,394 Indirect 953,136 935,594 Direct 211,793 228,526 Home equity 561,789 562,051 Total loans 12,384,612 12,122,002 Allowance for credit losses (106,380) (95,966) Net loans $ 12,278,232 $ 12,026,036 (1) Includes direct finance leases of $44.4 million at March 31, 2020 and $47.2 million at December 31, 2019. |
Schedule of Activity in Allowance for Loan Losses | Old National’s activity in the allowance for credit losses for loans by portfolio segment for the three months ended March 31, 2020 was as follows: (dollars in thousands) Balance at Impact of Sub-Total Charge-offs Recoveries Provision Balance at End of Period Three Months Ended Commercial $ 21,359 $ 7,150 $ 28,509 $ (5,042) $ 357 $ 7,301 $ 31,125 Commercial real estate 20,535 25,548 46,083 (1,292) 669 8,643 54,103 BBCC 2,279 3,702 5,981 (15) 66 (615) 5,417 Residential real estate 2,299 6,986 9,285 (300) 169 483 9,637 Indirect 5,319 (1,669) 3,650 (1,203) 414 805 3,666 Direct 1,863 (1,059) 804 (475) 152 341 822 Home equity 965 689 1,654 (118) 82 (8) 1,610 Total allowance for credit losses $ 54,619 $ 41,347 $ 95,966 $ (8,445) $ 1,909 $ 16,950 $ 106,380 (dollars in thousands) Total Three months ended March 31, 2020 Allowance for credit losses on unfunded loan commitments: Balance at beginning of period $ 2,656 Impact of adopting ASC 326 4,549 Sub-Total 7,205 Expense (reversal of expense) for credit losses 1,745 Balance at end of period $ 8,950 Old National's activity in the allowance for loan losses for the three months ended March 31, 2019 was as follows: (dollars in thousands) Commercial Commercial Real Estate Residential Consumer Total Three Months Ended March 31, 2019 Balance at beginning of period $ 21,742 $ 23,470 $ 2,277 $ 7,972 $ 55,461 Charge-offs (160) (235) (178) (2,319) (2,892) Recoveries 375 570 72 930 1,947 Provision (1,551) 1,364 131 1,099 1,043 Balance at end of period $ 20,406 $ 25,169 $ 2,302 $ 7,682 $ 55,559 The following table disaggregates Old National's allowance for credit losses and amortized cost basis in loans by measurement methodology at December 31, 2019: (dollars in thousands) Commercial Commercial Real Estate Residential Consumer Total December 31, 2019 Allowance for loan losses: Individually evaluated for impairment $ 7,891 $ 1,006 $ — $ — $ 8,897 Collectively evaluated for impairment 14,692 20,582 2,299 7,954 45,527 Loans acquired with deteriorated credit quality 2 — — 193 195 Total allowance for loan losses $ 22,585 $ 21,588 $ 2,299 $ 8,147 $ 54,619 Loans and leases outstanding: Individually evaluated for impairment $ 41,479 $ 63,288 $ — $ — $ 104,767 Collectively evaluated for impairment 2,843,536 5,084,737 2,326,907 1,723,715 11,978,895 Loans acquired with deteriorated credit quality 5,281 18,767 7,382 2,432 33,862 Total loans and leases outstanding $ 2,890,296 $ 5,166,792 $ 2,334,289 $ 1,726,147 $ 12,117,524 |
Schedule of Risk Category of Loans and Amortized Cost | The following table summarizes the risk category of commercial, commercial real estate, and BBCC loans by loan portfolio segment and class of loan: Risk Rating (dollars in thousands) Pass Criticized Classified - Classified - Classified - Total March 31, 2020 Commercial: Term Loans at Amortized Cost by Origination Year: Prior to 2016 $ 339,465 $ 9,386 $ 9,935 $ 816 $ 3,051 $ 362,653 2016 177,397 6,799 4,268 784 803 190,051 2017 342,542 12,704 13,345 2,324 9,838 380,753 2018 312,229 12,995 7,893 5,905 157 339,179 2019 546,484 4,707 5,421 3,274 2,254 562,140 2020 213,893 1,708 751 — — 216,352 Revolving Loans 581,830 39,157 18,326 3,905 — 643,218 Revolving to Term Loans 138,584 1,356 3,397 6,782 — 150,119 Total $ 2,652,424 $ 88,812 $ 63,336 $ 23,790 $ 16,103 $ 2,844,465 Commercial real estate: Term Loans at Amortized Cost by Origination Year: Prior to 2016 $ 793,743 $ 22,910 $ 12,944 $ 15,352 $ 3,881 $ 848,830 2016 596,312 12,915 17,519 14,368 212 641,326 2017 838,575 69,842 27,025 1,830 4,356 941,628 2018 864,477 7,933 23,741 3,525 3,300 902,976 2019 1,149,445 20,007 2,878 2,177 1,965 1,176,472 2020 280,341 — 39 — — 280,380 Revolving Loans 25,474 500 212 — — 26,186 Revolving to Term Loans 282,936 6,522 10,792 391 — 300,641 Total $ 4,831,303 $ 140,629 $ 95,150 $ 37,643 $ 13,714 $ 5,118,439 BBCC: Term Loans at Amortized Cost by Origination Year: Prior to 2016 $ 17,943 $ — $ — $ — $ 187 $ 18,130 2016 30,762 1,024 551 538 53 32,928 2017 45,700 522 1,028 575 — 47,825 2018 61,865 512 — 1,070 61 63,508 2019 90,970 877 1,443 438 — 93,728 2020 26,069 172 — 46 — 26,287 Revolving Loans 58,040 4,044 644 76 — 62,804 Revolving to Term Loans 18,679 1,419 1,008 823 — 21,929 Total $ 350,028 $ 8,570 $ 4,674 $ 3,566 $ 301 $ 367,139 Payment Performance (dollars in thousands) Performing Nonperforming Total March 31, 2020 Residential real estate: Term Loans at Amortized Cost by Origination Year: Prior to 2016 $ 826,831 $ 20,629 $ 847,460 2016 292,199 1,755 293,954 2017 303,763 661 304,424 2018 219,650 425 220,075 2019 561,322 97 561,419 2020 100,385 — 100,385 Revolving Loans — — — Revolving to Term Loans 134 — 134 Total $ 2,304,284 $ 23,567 $ 2,327,851 Indirect: Term Loans at Amortized Cost by Origination Year: Prior to 2016 $ 53,056 $ 277 $ 53,333 2016 99,915 685 100,600 2017 152,882 1,113 153,995 2018 199,211 568 199,779 2019 348,865 242 349,107 2020 96,230 — 96,230 Revolving Loans — — — Revolving to Term Loans 92 — 92 Total $ 950,251 $ 2,885 $ 953,136 Direct: Term Loans at Amortized Cost by Origination Year: Prior to 2016 $ 29,807 $ 535 $ 30,342 2016 15,445 249 15,694 2017 28,370 145 28,515 2018 48,587 214 48,801 2019 46,602 51 46,653 2020 12,485 — 12,485 Revolving Loans 27,834 — 27,834 Revolving to Term Loans 1,468 1 1,469 Total $ 210,598 $ 1,195 $ 211,793 Home equity: Term Loans at Amortized Cost by Origination Year: Prior to 2016 $ — $ — $ — 2016 240 326 566 2017 1,002 37 1,039 2018 719 — 719 2019 1,085 31 1,116 2020 — — — Revolving Loans 535,095 189 535,284 Revolving to Term Loans 19,425 3,640 23,065 Total $ 557,566 $ 4,223 $ 561,789 The risk category or commercial and commercial real estate loans by class of loans at December 31, 2019 was as follows: (dollars in thousands) Commercial Commercial Commercial Corporate Credit Exposure Credit Risk Profile by December 31, December 31, December 31, Grade: Pass $ 2,702,605 $ 665,512 $ 4,191,455 Criticized 84,676 34,651 115,514 Classified - substandard 63,979 — 101,693 Classified - nonaccrual 22,240 12,929 38,822 Classified - doubtful 16,796 — 6,216 Total $ 2,890,296 $ 713,092 $ 4,453,700 The following table presents the recorded investment in residential and consumer loans based on payment activity at December 31, 2019: Consumer (dollars in thousands) Residential Home Equity Auto Other December 31, 2019 Performing $ 2,311,670 $ 555,025 $ 1,013,760 $ 147,383 Nonperforming 22,619 3,996 3,527 2,456 Total $ 2,334,289 $ 559,021 $ 1,017,287 $ 149,839 |
Schedule of Past Due Financing Receivables | The following table presents the aging of the amortized cost basis in past due loans as of March 31, 2020 by class of loans: (dollars in thousands) 30-59 Days 60-89 Days Past Due Total Current Total March 31, 2020 Commercial $ 3,578 $ 1,707 $ 9,156 $ 14,441 $ 2,830,024 $ 2,844,465 Commercial Real Estate 6,114 2,200 13,412 21,726 5,096,713 5,118,439 BBCC 419 156 234 809 366,330 367,139 Residential 13,895 4,603 9,255 27,753 2,300,098 2,327,851 Indirect 6,358 963 339 7,660 945,476 953,136 Direct 1,513 183 325 2,021 209,772 211,793 Home equity 1,755 474 1,761 3,990 557,799 561,789 Total $ 33,632 $ 10,286 $ 34,482 $ 78,400 $ 12,306,212 $ 12,384,612 |
Schedule of Nonaccrual and Past Due Loans | The following table presents the amortized cost basis of loans on nonaccrual status and loans past due 90 days or more and still accruing by class of loan: (dollars in thousands) Beginning End Nonaccrual Past Due Interest At or for the Three Months Ended March 31, 2020 Commercial $ 40,103 $ 39,893 $ 7,040 $ 3 $ — Commercial Real Estate 58,350 51,355 13,281 165 — BBCC 4,530 3,869 — — — Residential 20,970 23,567 — 112 — Indirect 3,318 2,885 — 81 — Direct 1,303 1,195 — 102 — Home equity 3,857 4,223 34 195 — Total $ 132,431 $ 126,987 $ 20,355 $ 658 $ — Type of Collateral (dollars in thousands) Real Blanket Investment Auto Other March 31, 2020 Commercial $ 6,802 $ 23,175 $ 8,209 $ 396 $ 1,522 Commercial Real Estate 40,361 150 3,199 — 179 BBCC 1,930 1,614 59 246 — Residential 23,567 — — — — Indirect — — — 2,885 — Direct 863 — 8 265 — Home equity 4,223 — — — — Total loans $ 77,746 $ 24,939 $ 11,475 $ 3,792 $ 1,701 |
Schedule of Activity in Trouble Debt Restructurings | The following table presents activity in TDRs for the three months ended March 31, 2020: (dollars in thousands) Beginning (Charge-offs)/ (Payments)/ Additions Ending Three months ended March 31, 2020 Commercial $ 12,412 $ (695) $ (789) $ — $ 10,928 Commercial Real Estate 14,277 (1,272) (157) — 12,848 BBCC 578 — (16) — 562 Residential 3,107 — (67) — 3,040 Indirect — 3 (3) — — Direct 983 2 (63) — 922 Home equity 381 1 (8) — 374 Total $ 31,738 $ (1,961) $ (1,103) $ — $ 28,674 The following table presents activity in TDRs for the three months ended March 31, 2019: (dollars in thousands) Beginning (Charge-offs)/ (Payments)/ Additions Ending Commercial $ 10,275 $ (7) $ (1,029) $ 2,407 $ 11,646 Commercial Real Estate 27,671 (75) (1,562) 3,103 29,137 Residential 3,390 — (143) — 3,247 Consumer 2,374 (3) (58) — 2,313 Total $ 43,710 $ (85) $ (2,792) $ 5,510 $ 46,343 |
Schedule of Loans by Class Modified as Troubled Debt Restructuring | The following table presents loans modified as TDRs that occurred during the three months ended March 31, 2020 and 2019: (dollars in thousands) Total Three Months Ended March 31, 2020 TDR: Number of loans — Pre-modification outstanding recorded investment — Post-modification outstanding recorded investment — Three Months Ended March 31, 2019 TDR: Number of loans 4 Pre-modification outstanding recorded investment 5,510 Post-modification outstanding recorded investment 5,510 |
Schedule of Impaired Loans | Only purchased loans that have experienced subsequent impairment since the date acquired (excluding loans acquired with deteriorated credit quality) are included in the table below. (dollars in thousands) Recorded Unpaid Principal Related December 31, 2019 With no related allowance recorded: Commercial $ 23,227 $ 23,665 $ — Commercial Real Estate - Construction 12,929 12,929 — Commercial Real Estate - Other 37,674 38,112 — Residential 1,774 1,794 — Consumer 403 568 — With an allowance recorded: Commercial 18,252 18,305 7,891 Commercial Real Estate - Other 12,685 12,685 1,006 Residential 1,201 1,201 39 Consumer 1,094 1,094 55 Total $ 109,239 $ 110,353 $ 8,991 The average balance of impaired loans during the three months ended March 31, 2019 are included in the table below. (dollars in thousands) Three Months Ended Average Recorded Investment With no related allowance recorded: Commercial $ 23,688 Commercial Real Estate - Construction 5,477 Commercial Real Estate - Other 40,135 Residential 2,289 Consumer 660 With an allowance recorded: Commercial 11,347 Commercial Real Estate - Construction 8,690 Commercial Real Estate - Other 26,279 Residential 881 Consumer 1,693 Total $ 121,139 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Activity in Other Real Estate Owned | The following table presents activity in other real estate owned: Three Months Ended (dollars in thousands) 2020 2019 Balance at beginning of period $ 2,169 $ 3,232 Additions 146 394 Sales (113) (272) Impairments (39) (75) Balance at end of period (1) $ 2,163 $ 3,279 (1) Includes repossessed personal property of $0.4 million at March 31, 2020 and $0.4 million at March 31, 2019. |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | The composition of premises and equipment was as follows: (dollars in thousands) March 31, December 31, 2019 Land $ 71,451 $ 79,569 Buildings 360,462 380,925 Furniture, fixtures, and equipment 117,566 112,654 Leasehold improvements 44,371 44,136 Total 593,850 617,284 Accumulated depreciation (131,486) (126,359) Premises and equipment, net $ 462,364 $ 490,925 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Lessee Disclosure [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense were as follows: Affected Line Three Months Ended (dollars in thousands) Statement of Income 2020 2019 Operating lease cost occupancy/equipment expense $ 9,181 $ 4,402 Finance lease cost: Amortization of right-of-use assets occupancy expense 166 158 Interest on lease liabilities interest expense 78 81 Short-term lease cost occupancy expense 1 1 Sub-lease income occupancy expense (128) (179) Total $ 9,298 $ 4,463 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: (dollars in thousands) March 31, December 31, 2019 Operating Leases Operating lease right-of-use assets $ 86,819 $ 95,477 Operating lease liabilities 95,830 99,500 Finance Leases Premises and equipment, net 7,004 7,170 Other borrowings 7,284 7,406 Weighted-Average Remaining Lease Term (in Years) Operating leases 10.5 10.6 Finance leases 11.0 11.3 Weighted-Average Discount Rate Operating leases 3.43 % 3.45 % Finance leases 4.44 % 4.43 % |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Three Months Ended (dollars in thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,193 $ 4,436 Operating cash flows from finance leases 78 $ 81 Financing cash flows from finance leases 122 $ 111 |
Schedule of Maturity Analysis of Lease Liability by Lease Classification | The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2020: (dollars in thousands) Operating Finance 2020 $ 12,306 $ 603 2021 15,492 809 2022 13,695 815 2023 9,078 830 2024 7,840 858 Thereafter 56,858 5,374 Total undiscounted lease payments 115,269 9,289 Amounts representing interest (19,439) (2,005) Lease liability $ 95,830 $ 7,284 |
Schedule of Maturity Analysis of Tenant Leases | The following table presents a maturity analysis of the Company’s tenant leases at March 31, 2020: (dollars in thousands) Tenant Leases 2020 $ 1,832 2021 2,295 2022 1,941 2023 1,536 2024 1,409 Thereafter 2,520 Total undiscounted lease payments $ 11,533 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The following table shows the changes in the carrying amount of goodwill: Three Months Ended (dollars in thousands) 2020 2019 Balance at beginning of period $ 1,036,994 $ 1,036,258 Acquisitions and adjustments — — Balance at end of period $ 1,036,994 $ 1,036,258 |
Schedule of Gross Carrying Amounts and Accumulated Amortization of Other Intangible Assets | The gross carrying amount and accumulated amortization of other intangible assets were as follows: (dollars in thousands) Gross Accumulated Net March 31, 2020 Core deposit $ 119,051 $ (66,488) $ 52,563 Customer trust relationships 16,547 (12,781) 3,766 Total intangible assets $ 135,598 $ (79,269) $ 56,329 December 31, 2019 Core deposit $ 119,051 $ (63,020) $ 56,031 Customer trust relationships 16,547 (12,473) 4,074 Total intangible assets $ 135,598 $ (75,493) $ 60,105 |
Schedule of Estimated Amortization Expense for Future Years | Estimated amortization expense for future years is as follows: (dollars in thousands) 2020 remaining $ 10,315 2021 11,336 2022 9,014 2023 7,053 2024 5,645 Thereafter 12,966 Total $ 56,329 |
Loan Servicing Rights (Tables)
Loan Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Components of Loan Servicing Rights and Valuation Allowance | The following table summarizes the carrying values and activity related to loan servicing rights and the related valuation allowance: Three Months Ended (dollars in thousands) 2020 2019 Balance at beginning of period $ 25,399 $ 24,512 Additions 1,731 659 Amortization (1,555) (900) Balance before valuation allowance at end of period 25,575 24,271 Valuation allowance: Balance at beginning of period (31) (15) (Additions)/recoveries (1,412) (2) Balance at end of period (1,443) (17) Loan servicing rights, net $ 24,132 $ 24,254 |
Qualified Affordable Housing _2
Qualified Affordable Housing Projects and Other Tax Credit Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments in Affordable Housing Projects [Abstract] | |
Schedule of Qualified Affordable Housing Projects and Other Tax Credit Investments | The following table summarizes Old National’s investments in qualified affordable housing projects and other tax credit investments: (dollars in thousands) March 31, 2020 December 31, 2019 Investment Accounting Method Investment Unfunded Commitment (1) Investment Unfunded Commitment LIHTC Proportional amortization $ 28,909 $ 3,907 $ 29,735 $ 3,911 FHTC Equity 25,760 22,896 22,403 17,886 Renewable Energy Equity 7,151 3,669 7,523 4,129 Total $ 61,820 $ 30,472 $ 59,661 $ 25,926 (1) All commitments will be paid by Old National by 2027. The following table summarizes the amortization expense and tax benefit recognized for Old National’s qualified affordable housing projects and other tax credit investments: (dollars in thousands) Amortization Expense (1) Tax Expense Three Months Ended March 31, 2020 LIHTC $ 776 $ (1,019) FHTC 5,143 (1,356) Renewable Energy 372 (400) Total $ 6,291 $ (2,775) Three Months Ended March 31, 2019 LIHTC $ 792 $ (1,042) Renewable Energy 260 (244) Total $ 1,052 $ (1,286) (1) The amortization expense for the LIHTC investments is included in our income tax expense. The amortization expense for the FHTC and Renewable Energy tax credits is included in noninterest expense. (2) All of the tax benefits recognized are included in our income tax expense. The tax benefit recognized for the FHTC and Renewable Energy investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) of the investments’ income (loss). |
Securities Sold Under Agreeme_2
Securities Sold Under Agreements to Repurchase (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Schedule Of Securities Sold Under Agreements To Repurchase And Weighted Average Interest Rates | The following table presents securities sold under agreements to repurchase and related weighted-average interest rates: At or for the Three Months Ended (dollars in thousands) March 31, December 31, March 31, Outstanding at period end $ 318,067 $ 327,782 $ 342,480 Average amount outstanding during the period 329,091 337,786 361,261 Maximum amount outstanding at any month-end during the period 318,067 337,185 367,884 Weighted-average interest rate: During the period 0.47 % 0.55 % 0.74 % At period end 0.22 % 0.53 % 0.79 % |
Schedule Of Remaining Contractual Maturity Of Secured Borrowings And Class Of Collateral Pledged Under Repurchase Agreements | The following table presents the contractual maturity of our secured borrowings and class of collateral pledged: At March 31, 2020 Remaining Contractual Maturity of the Agreements (dollars in thousands) Overnight and Continuous Up to 30-90 Days Greater Than 90 days Total Repurchase Agreements: U.S. Treasury and agency securities $ 318,067 $ — $ — $ — $ 318,067 Total $ 318,067 $ — $ — $ — $ 318,067 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Federal Home Loan Banks [Abstract] | |
Summary of FHLB Advances | The following table summarizes Old National Bank’s FHLB advances: (dollars in thousands) March 31, December 31, FHLB advances (fixed rates 0.31% to 4.96% and variable rates 0.09% to 1.82%) maturing April 2020 to January 2030 $ 2,100,660 $ 1,800,664 ASC 815 fair value hedge and other basis adjustments 29,603 22,183 Total other borrowings $ 2,130,263 $ 1,822,847 |
Summary of Contractual Maturities of FHLB Advances | Contractual maturities of FHLB advances at March 31, 2020 were as follows: (dollars in thousands) Due in 2020 $ 125,000 Due in 2021 20,000 Due in 2022 130,500 Due in 2023 160 Due in 2024 375,000 Thereafter 1,450,000 ASC 815 fair value hedge and other basis adjustments 29,603 Total $ 2,130,263 |
Other Borrowings (Tables)
Other Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Borrowings | The following table summarizes Old National’s other borrowings: (dollars in thousands) March 31, December 31, Old National Bancorp: Senior unsecured notes (fixed rate 4.125% maturing August 2024) $ 175,000 $ 175,000 Unamortized debt issuance costs related to senior unsecured notes (676) (715) Junior subordinated debentures (variable rates of 2.34% to 5.62%) maturing April 2032 to June 2037 45,093 52,310 Other basis adjustments (3,082) (2,833) Old National Bank: Finance lease liabilities 7,284 7,406 Subordinated debentures (fixed rate 5.75%) 12,000 12,000 Other 495 517 Total other borrowings $ 236,114 $ 243,685 The following table summarizes the terms of our outstanding junior subordinated debentures: (dollars in thousands) Rate at Name of Trust Issuance Date Issuance Amount Rate March 31, 2020 Maturity Date VFSC Capital Trust I April 2002 $ 3,093 6-month LIBOR plus 3.70% 5.62% April 22, 2032 St. Joseph Capital Trust II March 2005 5,000 3-month LIBOR plus 1.75% 2.59% March 17, 2035 Anchor Capital Trust III August 2005 5,000 3-month LIBOR plus 1.55% 3.00% September 30, 2035 Home Federal Statutory September 2006 15,000 3-month LIBOR plus 1.65% 2.39% September 15, 2036 Monroe Bancorp Capital July 2006 3,000 3-month LIBOR plus 1.60% 3.47% October 7, 2036 Tower Capital Trust 3 December 2006 9,000 3-month LIBOR plus 1.69% 3.27% March 1, 2037 Monroe Bancorp Statutory March 2007 5,000 3-month LIBOR plus 1.60% 2.34% June 15, 2037 Total $ 45,093 |
Contractual Maturities of Other Borrowings | Contractual maturities of other borrowings at March 31, 2020 were as follows: (dollars in thousands) Due in 2020 $ 376 Due in 2021 524 Due in 2022 553 Due in 2023 591 Due in 2024 175,643 Thereafter 61,690 Unamortized debt issuance costs and other basis adjustments (3,263) Total $ 236,114 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of AOCI | The following table summarizes the changes within each classification of AOCI, net of tax: (dollars in thousands) Unrealized Unrealized Gains and Defined Total Three Months Ended March 31, 2020 Balance at beginning of period $ 56,131 $ — $ 240 $ (164) $ 56,207 Other comprehensive income (loss) before 80,369 — 5,886 — 86,255 Amounts reclassified from AOCI to income (1) (4,000) — (325) 20 (4,305) Balance at end of period $ 132,500 $ — $ 5,801 $ (144) $ 138,157 Three Months Ended March 31, 2019 Balance at beginning of period $ (37,348) $ (8,515) $ 1,099 $ (186) $ (44,950) Other comprehensive income (loss) before 47,711 — (296) — 47,415 Amounts reclassified from AOCI to income (1) 79 351 (290) 15 155 Balance at end of period $ 10,442 $ (8,164) $ 513 $ (171) $ 2,620 (1) See tables below for details about reclassifications to income. |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the significant amounts reclassified out of each component of AOCI: Details about AOCI Components Amount Reclassified Affected Line Item in the Three Months Ended (dollars in thousands) 2020 2019 Unrealized gains and losses on $ 5,174 $ (103) Debt securities gains (losses), net (1,174) 24 Income tax (expense) benefit $ 4,000 $ (79) Net income Unrealized gains and losses on $ — $ (457) Interest income (expense) — 106 Income tax (expense) benefit $ — $ (351) Net income Gains and losses on cash flow hedges $ 431 $ 385 Interest income (expense) (106) (95) Income tax (expense) benefit $ 325 $ 290 Net income Amortization of defined benefit Actuarial gains (losses) $ (27) $ (20) Salaries and employee benefits 7 5 Income tax (expense) benefit $ (20) $ (15) Net income Total reclassifications for the period $ 4,305 $ (155) Net income |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Differences in Taxes from Continuing Operations Computed at Statutory Rate | Following is a summary of the major items comprising the differences in taxes from continuing operations computed at the federal statutory rate and as recorded in the consolidated statements of income: Three Months Ended (dollars in thousands) 2020 2019 Provision at statutory rate of 21% $ 5,372 $ 14,570 Tax-exempt income: Tax-exempt interest (2,632) (2,531) Section 291/265 interest disallowance 73 111 Company-owned life insurance income (647) (669) Tax-exempt income (3,206) (3,089) State income taxes (8) 1,999 Interim period effective rate adjustment 3,267 688 Tax credit investments - federal (1,902) (420) Other, net (584) (644) Income tax expense $ 2,939 $ 13,104 Effective tax rate 11.5 % 18.9 % |
Schedule of Significant Components of Net Deferred Tax Assets (Liabilities) | Significant components of net deferred tax assets (liabilities) were as follows: (dollars in thousands) March 31, December 31, 2019 Deferred Tax Assets Allowance for loan losses, net of recapture $ 28,603 $ 14,179 Benefit plan accruals 13,268 19,673 Alternative minimum tax credit 1,272 1,272 Net operating loss carryforwards 21,575 25,336 Federal tax credits 3,238 — Deferred gain on securities 3,339 3,754 Acquired loans 15,341 16,784 Operating lease liabilities 25,591 26,503 Tax credit investments and other partnerships 2,808 1,765 Other real estate owned 143 141 Other, net 790 591 Total deferred tax assets 115,968 109,998 Deferred Tax Liabilities Purchase accounting (18,187) (17,564) Loan servicing rights (5,989) (6,289) Premises and equipment (8,139) (12,167) Prepaid expenses (973) (973) Operating lease right-of-use assets (23,285) (25,448) Unrealized gains on available-for-sale investment securities (38,162) (15,751) Unrealized gains on hedges (1,889) (78) Other, net (1,768) (2,023) Total deferred tax liabilities (98,392) (80,293) Net deferred tax assets $ 17,576 $ 29,705 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Derivative Financial Instruments | The following table summarizes the fair value of derivative financial instruments utilized by Old National: (dollars in thousands) Balance Fair Balance Fair March 31, 2020 Derivatives designated as hedging instruments Interest rate contracts Other assets $ 21,630 Other liabilities $ 1,443 Total derivatives designated as hedging instruments $ 21,630 $ 1,443 Derivatives not designated as hedging instruments Interest rate contracts (1) Other assets $ 114,839 Other liabilities $ 26,630 Mortgage contracts Other assets 13,081 Other liabilities 6,913 Foreign currency contracts Other assets 323 Other liabilities 233 Total derivatives not designated as hedging instruments $ 128,243 $ 33,776 Total $ 149,873 $ 35,219 December 31, 2019 Derivatives designated as hedging instruments Interest rate contracts Other assets $ 7,157 Other liabilities $ 1,046 Total derivatives designated as hedging instruments $ 7,157 $ 1,046 Derivatives not designated as hedging instruments Interest rate contracts (1) Other assets $ 42,224 Other liabilities $ 10,883 Mortgage contracts Other assets 1,702 Other liabilities 354 Foreign currency contracts Other assets 218 Other liabilities 110 Total derivatives not designated as hedging instruments $ 44,144 $ 11,347 Total $ 51,301 $ 12,393 (1) The fair values of counterparty interest rate swaps are zero due to the settlement of centrally-cleared variation margin rules. The net adjustment was $88.9 million as of March 31, 2020 and $31.6 million as of December 31, 2019. |
Summary of Interest Rate Derivatives | Summary information about the interest rate swaps designated as fair value hedges is as follows: (dollars in thousands) March 31, December 31, Notional amounts $ 380,500 $ 130,500 Weighted average pay rates 0.33 % 1.82 % Weighted average receive rates 1.33 % 2.20 % Weighted average maturity (in years) 2.9 2.8 Fair value of swaps $ 10,797 $ 1,555 Summary information about the interest rate swaps designated as cash flow hedges is as follows: (dollars in thousands) March 31, December 31, Notional amounts $ 125,000 $ 25,000 Weighted average pay rates 1.11 % 3.52 % Weighted average receive rates 1.46 % 1.93 % Weighted average maturity (in years) 1.8 2.1 Unrealized gains (losses) $ (1,443) $ (954) (dollars in thousands) March 31, December 31, Notional amounts $ 300,000 $ 300,000 Weighted average cap rates 3.21 % 3.21 % Weighted average floor rates 2.21 % 2.21 % Weighted average rates 1.25 % 1.70 % Weighted average maturity (in years) 1.6 1.9 Unrealized gains (losses) $ 9,214 $ 3,691 is as follows: (dollars in thousands) March 31, Notional amounts $ 100,000 Weighted average floor strike rate 0.75 % Weighted average rates 0.99 % Weighted average maturity (in years) 3.0 Unrealized gains (losses) $ 1,619 |
Schedule Of Derivative Instruments Effect On Consolidated Statement Of Income | The effect of derivative instruments in fair value hedging relationships on the consolidated statements of income were as follows: (dollars in thousands) Location of Gain or Gain (Loss) Recognized in Income on Derivative Hedged Items Location of Gain or Gain (Loss) Recognized in Income on Related Hedged Items Derivatives in Three Months Ended March 31, 2020 Interest rate contracts Interest income/(expense) $ 9,241 Fixed-rate debt Interest income/(expense) $ (9,228) Three Months Ended March 31, 2019 Interest rate contracts Interest income/(expense) $ 6,552 Fixed-rate debt Interest income/(expense) $ (6,548) The effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income were as follows: Three Months Ended Three Months Ended (dollars in thousands) 2020 2019 2020 2019 Derivatives in Location of Gain or Gain (Loss) Gain (Loss) Interest rate contracts Interest income/(expense) $ 7,803 $ (392) $ 431 $ 385 The effect of derivatives not designated as hedging instruments on the consolidated statements of income were as follows: Three Months Ended (dollars in thousands) 2020 2019 Derivatives Not Designated as Location of Gain or (Loss) Gain (Loss) Interest rate contracts (1) Other income/(expense) $ (466) $ (37) Mortgage contracts Mortgage banking revenue 4,820 1,022 Foreign currency contracts Other income/(expense) (19) 3 Total $ 4,335 $ 988 (1) Includes the valuation differences between the customer and offsetting swaps. |
Schedule of Floor Spread Transactions Designated as Cash Flow Hedges | Summary information about the floor spread transactions designated as cash flow hedges at December 31, 2019 was as follows: (dollars in thousands) December 31, Notional amounts $ 210,000 Weighted average purchased floor strike rate 2.00 % Weighted average sold floor rate 1.00 % Weighted average rate 1.70 % Weighted average maturity (in years) 2.1 Unrealized gains (losses) $ 1,820 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which we have elected the fair value option, are summarized below: Fair Value Measurements at March 31, 2020 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Financial Assets Equity securities $ 6,870 $ 6,870 $ — $ — Investment securities available-for-sale: U.S. Treasury 11,733 11,733 — — U.S. government-sponsored entities and agencies 519,171 — 519,171 — Mortgage-backed securities - Agency 3,210,000 — 3,210,000 — States and political subdivisions 1,302,395 — 1,302,395 — Pooled trust preferred securities 7,422 — — 7,422 Other securities 309,304 31,670 277,634 — Residential loans held for sale 54,209 — 54,209 — Derivative assets 149,873 — 149,873 — Financial Liabilities Derivative liabilities 35,219 — 35,219 — Fair Value Measurements at December 31, 2019 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Financial Assets Equity securities $ 6,842 $ 6,842 $ — $ — Investment securities available-for-sale: U.S. Treasury 17,682 17,682 — — U.S. government-sponsored entities and agencies 592,984 — 592,984 — Mortgage-backed securities - Agency 3,183,861 — 3,183,861 — States and political subdivisions 1,275,643 — 1,275,603 40 Pooled trust preferred securities 8,222 — — 8,222 Other securities 306,699 31,169 275,530 — Residential loans held for sale 46,898 — 46,898 — Derivative assets 51,301 — 51,301 — Financial Liabilities Derivative liabilities 12,393 — 12,393 — |
Reconciliation of All Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3): (dollars in thousands) Pooled Trust States and Three Months Ended March 31, 2020 Balance at beginning of period $ 8,222 $ 40 Accretion of discount 4 — Sales/payments received (17) (40) Decrease in fair value of securities (787) — Balance at end of period $ 7,422 $ — Three Months Ended March 31, 2019 Balance at beginning of period $ 8,495 $ 4,108 Accretion of discount 4 — Sales/payments received (15) (35) Decrease in fair value of securities (361) — Transfers out of Level 3 — (4,033) Balance at end of period $ 8,123 $ 40 |
Quantitative Information about Significant Unobservable Inputs Used in Fair Value Measurements | The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy: (dollars in thousands) Fair Value Valuation Techniques Unobservable Input Range (Weighted Average) (4) March 31, 2020 Pooled trust preferred securities $ 7,422 Discounted cash flow Constant prepayment rate (1) 0.00% Additional asset defaults (2) 6.1% - 9.1% (7.1%) Expected asset recoveries (3) 0.0% - 18.6% (5.8%) December 31, 2019 Pooled trust preferred securities $ 8,222 Discounted cash flow Constant prepayment rate (1) 0.00% Additional asset defaults (2) 6.2% - 8.0% (6.8%) Expected asset recoveries (3) 0.0% - 19.1% (6.0%) State and political subdivisions 40 Discounted cash flow No observable inputs N/A Local municipality issuance Old National owns 100% Carried at par (1) Assuming no prepayments. (2) Each currently performing pool asset is assigned a default probability based on the banking environment, which is adjusted for specific issuer evaluation, of 0%, 50%, or 100%. (3) Each currently defaulted pool asset is assigned a recovery probability based on specific issuer evaluation of 0%, 25%, or 100%. (4) Unobservable inputs are weighted by the estimated number of defaults and current performing collateral of the instruments. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy: (dollars in thousands) Fair Value Valuation Techniques Unobservable Input Range (Weighted Average) (3) March 31, 2020 Collateral Dependent Impaired Loans Commercial loans $ 11,374 Fair value of Discount for type of property, 0% - 80% (42%) collateral age of appraisal, and current status Commercial real estate loans (1) 27,570 Fair value of Discount for type of property, 0% collateral age of appraisal, and current status Foreclosed Assets Commercial real estate (1) 214 Fair value of Discount for type of property, 5% collateral age of appraisal, and current status December 31, 2019 Collateral Dependent Impaired Loans Commercial loans $ 10,361 Fair value of Discount for type of property, 0% - 50% (13%) collateral age of appraisal, and current status Commercial real estate loans (2) 11,610 Fair value of Discount for type of property, 45% collateral age of appraisal, and current status Foreclosed Assets Commercial real estate (2) 21 Fair value of Discount for type of property, 43% collateral age of appraisal, and current status Residential (2) 22 Fair value of Discount for type of property, 21% collateral age of appraisal, and current status (1) There were no commercial real estate loans large enough to require a discount and there was only one foreclosed commercial real estate asset at March 31, 2020, so no range or weighted average is reported. (2) There was only one collateral dependent impaired commercial real estate loan, one foreclosed commercial real estate asset, and one foreclosed residential asset at December 31, 2019, so no range or weighted average is reported. (3) Unobservable inputs were weighted by the relative fair value of the instruments. |
Assets Measured at Fair Value on a Non-Recurring Basis | Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at March 31, 2020 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Collateral Dependent Impaired Loans: Commercial loans $ 11,374 $ — $ — $ 11,374 Commercial real estate loans 27,570 — — 27,570 Foreclosed Assets: Commercial 214 — — 214 Loan servicing rights 23,927 — 23,927 — Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at December 31, 2019 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Collateral Dependent Impaired Loans: Commercial loans $ 10,361 $ — $ — $ 10,361 Commercial real estate loans 11,610 — — 11,610 Foreclosed Assets: Commercial real estate 21 — — 21 Residential 22 — — 22 Loan servicing rights 4,662 — 4,662 — |
Schedule of Difference Between the Aggregate Fair Value and the Aggregate Remaining Principal Balance | The difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected was as follows: (dollars in thousands) Aggregate Fair Value Difference Contractual Principal March 31, 2020 Residential loans held for sale $ 54,209 $ 2,952 $ 51,257 December 31, 2019 Residential loans held for sale $ 46,898 $ 1,529 $ 45,369 The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value: (dollars in thousands) Other Interest Income Interest (Expense) Total Changes Three Months Ended March 31, 2020 Residential loans held for sale $ 1,421 $ 2 $ — $ 1,423 Three Months Ended March 31, 2019 Residential loans held for sale $ 90 $ 5 $ — $ 95 |
Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Carried at Fair Value | The carrying amounts and estimated fair values of financial instruments not carried at fair value were as follows: Fair Value Measurements at March 31, 2020 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Financial Assets Cash, due from banks, money market, $ 343,177 $ 343,177 $ — $ — Loans, net: Commercial 3,012,704 — — 2,984,123 Commercial real estate 5,226,694 — — 5,184,989 Residential real estate 2,318,214 — — 2,334,673 Consumer credit 1,720,620 — — 1,718,474 Accrued interest receivable 77,810 41 23,744 54,025 Financial Liabilities Deposits: Noninterest-bearing demand deposits $ 4,058,559 $ 4,058,559 $ — $ — Checking, NOW, savings, and money market 8,705,109 8,705,109 — — Time deposits 1,541,694 — 1,563,286 — Federal funds purchased and interbank borrowings 560,770 560,770 — — Securities sold under agreements to repurchase 318,067 318,067 — — FHLB advances 2,130,263 — 2,279,323 — Other borrowings 236,114 — 242,995 — Accrued interest payable 6,113 — 6,113 — Standby letters of credit 459 — — 459 Off-Balance Sheet Financial Instruments Commitments to extend credit $ — $ — $ — $ 15,647 Fair Value Measurements at December 31, 2019 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Financial Assets Cash, due from banks, money market, $ 276,337 $ 276,337 $ — $ — Loans, net: Commercial 2,867,711 — — 2,831,298 Commercial real estate 5,145,204 — — 5,130,848 Residential real estate 2,331,990 — — 2,357,341 Consumer credit 1,718,000 — — 1,676,253 Accrued interest receivable 85,123 15 28,185 56,923 Financial Liabilities Deposits: Noninterest-bearing demand deposits $ 4,042,286 $ 4,042,286 $ — $ — Checking, NOW, savings, and money market 8,828,881 8,828,881 — — Time deposits 1,682,230 — 1,692,569 — Federal funds purchased and interbank borrowings 350,414 350,414 — — Securities sold under agreements to repurchase 327,782 327,782 — — FHLB advances 1,822,847 — 1,875,089 — Other borrowings 243,685 — 254,519 — Accrued interest payable 8,272 — 8,272 — Standby letters of credit 573 — — 573 Off-Balance Sheet Financial Instruments Commitments to extend credit $ — $ — $ — $ 4,302 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Information | The consolidated statements of income include all categories of noninterest income. The following table reflects only the categories of noninterest income that are within the scope of Topic 606: Three Months Ended (dollars in thousands) 2020 2019 Wealth management fees $ 8,884 $ 8,535 Service charges on deposit accounts 10,077 10,826 Debit card and ATM fees 4,998 5,503 Investment product fees 5,874 5,271 Other income: Merchant processing fees 804 707 Gain (loss) on other real estate owned (56) 40 Safe deposit box fees 310 411 Insurance premiums and commissions 116 200 Total $ 31,007 $ 31,493 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Additional Information (Detail) $ in Thousands | Jan. 01, 2020USD ($) | Mar. 31, 2020portfolio | Mar. 31, 2020numberOfLoanPortfolios | Mar. 31, 2020USD ($) | Mar. 31, 2020segment | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Number of distinct loan portfolios | portfolio | 7 | |||||||
Current expected credit losses, initial loss forecast | 1 year | |||||||
Current expected credit losses, reversion period, term | 2 years | |||||||
Increase in allowance for loan loss | $ 54,619 | $ 106,380 | $ 54,619 | $ 55,559 | $ 55,461 | |||
Increase in allowance for credit losses on unfunded loan | 2,656 | 8,950 | 2,656 | |||||
Decrease in retained earnings | (682,185) | $ (649,909) | (682,185) | |||||
Noncredit discount amount accreted into interest income | 11,800 | |||||||
Number of loan portfolios | portfolio | 4 | |||||||
Number of loan segments | 7 | 7 | ||||||
Impact of ASC 326 Adoption | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Increase in allowance for loan loss | 41,347 | |||||||
Increase in allowance for credit losses on unfunded loan | 4,549 | $ 4,549 | ||||||
Decrease in retained earnings | 31,150 | |||||||
Impact of ASC 326 Adoption | Acquired Loan Portoflio | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Increase in allowance for loan loss | $ 27,100 |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements - Schedule of Composition of Loans and Impact of Adoption (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | |||||
Loans | $ 12,384,612 | $ 12,117,524 | $ 12,117,524 | ||
Allowance | (106,380) | (54,619) | (54,619) | $ (55,559) | $ (55,461) |
Net loans | 12,278,232 | 12,062,905 | |||
Net deferred tax assets | 17,576 | 29,705 | 29,705 | ||
Liabilities | |||||
Allowance for credit losses on unfunded loan commitments | 8,950 | 2,656 | 2,656 | ||
Shareholders' equity: | |||||
Retained earnings | 649,909 | 682,185 | 682,185 | ||
Impact of ASC 326 Adoption | |||||
Assets | |||||
Loans | 4,478 | ||||
Allowance | (41,347) | ||||
Net loans | (36,869) | ||||
Net deferred tax assets | 10,268 | ||||
Liabilities | |||||
Allowance for credit losses on unfunded loan commitments | 4,549 | 4,549 | |||
Shareholders' equity: | |||||
Retained earnings | (31,150) | ||||
Adjusted Balance | |||||
Assets | |||||
Loans | 12,122,002 | 12,117,524 | |||
Allowance | (95,966) | (54,619) | |||
Net loans | 12,026,036 | ||||
Net deferred tax assets | 39,973 | ||||
Liabilities | |||||
Allowance for credit losses on unfunded loan commitments | 7,205 | 7,205 | |||
Shareholders' equity: | |||||
Retained earnings | 651,035 | ||||
Commercial | |||||
Assets | |||||
Loans | 2,844,465 | 2,815,154 | 2,890,296 | ||
Allowance | (31,125) | (21,359) | (22,585) | (20,406) | (21,742) |
Commercial | Impact of ASC 326 Adoption | |||||
Assets | |||||
Loans | 2,679 | ||||
Allowance | (7,150) | ||||
Commercial | Adjusted Balance | |||||
Assets | |||||
Loans | 2,817,833 | 2,815,154 | |||
Allowance | (28,509) | (21,359) | |||
Commercial real estate | |||||
Assets | |||||
Loans | 5,118,439 | 4,889,253 | 5,166,792 | ||
Allowance | (54,103) | (20,535) | (21,588) | (25,169) | (23,470) |
Commercial real estate | Impact of ASC 326 Adoption | |||||
Assets | |||||
Loans | 1,637 | ||||
Allowance | (25,548) | ||||
Commercial real estate | Adjusted Balance | |||||
Assets | |||||
Loans | 4,890,890 | 4,889,253 | |||
Allowance | (46,083) | (20,535) | |||
BBCC | |||||
Assets | |||||
Loans | 367,139 | 352,681 | |||
Allowance | (5,417) | (2,279) | |||
BBCC | Impact of ASC 326 Adoption | |||||
Assets | |||||
Loans | 33 | ||||
Allowance | (3,702) | ||||
BBCC | Adjusted Balance | |||||
Assets | |||||
Loans | 352,714 | 352,681 | |||
Allowance | (5,981) | (2,279) | |||
Residential real estate | |||||
Assets | |||||
Loans | 2,327,851 | 2,334,289 | 2,334,289 | ||
Allowance | (9,637) | (2,299) | (2,299) | (2,302) | (2,277) |
Residential real estate | Impact of ASC 326 Adoption | |||||
Assets | |||||
Loans | 105 | ||||
Allowance | (6,986) | ||||
Residential real estate | Adjusted Balance | |||||
Assets | |||||
Loans | 2,334,394 | 2,334,289 | |||
Allowance | (9,285) | (2,299) | |||
Consumer | |||||
Assets | |||||
Loans | 1,726,147 | ||||
Allowance | (8,147) | $ (7,682) | $ (7,972) | ||
Indirect | |||||
Assets | |||||
Loans | 953,136 | 935,584 | |||
Allowance | (3,666) | (5,319) | |||
Indirect | Impact of ASC 326 Adoption | |||||
Assets | |||||
Loans | 10 | ||||
Allowance | 1,669 | ||||
Indirect | Adjusted Balance | |||||
Assets | |||||
Loans | 935,594 | 935,584 | |||
Allowance | (3,650) | (5,319) | |||
Direct | |||||
Assets | |||||
Loans | 211,793 | 228,524 | |||
Allowance | (822) | (1,863) | |||
Direct | Impact of ASC 326 Adoption | |||||
Assets | |||||
Loans | 2 | ||||
Allowance | 1,059 | ||||
Direct | Adjusted Balance | |||||
Assets | |||||
Loans | 228,526 | 228,524 | |||
Allowance | (804) | (1,863) | |||
Home equity | |||||
Assets | |||||
Loans | 561,789 | 562,039 | |||
Allowance | $ (1,610) | (965) | |||
Home equity | Impact of ASC 326 Adoption | |||||
Assets | |||||
Loans | 12 | ||||
Allowance | (689) | ||||
Home equity | Adjusted Balance | |||||
Assets | |||||
Loans | 562,051 | 562,039 | |||
Allowance | (1,654) | (965) | |||
Previously Reported | |||||
Assets | |||||
Loans | 12,117,524 | 12,117,524 | |||
Allowance | (54,619) | (54,619) | |||
Previously Reported | Commercial | |||||
Assets | |||||
Loans | 2,890,296 | 2,890,296 | |||
Allowance | (22,585) | (22,585) | |||
Previously Reported | Commercial real estate | |||||
Assets | |||||
Loans | 5,166,792 | 5,166,792 | |||
Allowance | (21,588) | (21,588) | |||
Previously Reported | Residential real estate | |||||
Assets | |||||
Loans | 2,334,289 | 2,334,289 | |||
Allowance | (2,299) | (2,299) | |||
Previously Reported | Consumer | |||||
Assets | |||||
Loans | 1,726,147 | 1,726,147 | |||
Allowance | (8,147) | (8,147) | |||
Segment Portfolio Reclassifications | Commercial | |||||
Assets | |||||
Loans | (75,142) | (75,142) | |||
Allowance | 1,226 | 1,226 | |||
Segment Portfolio Reclassifications | Commercial real estate | |||||
Assets | |||||
Loans | (277,539) | (277,539) | |||
Allowance | 1,053 | 1,053 | |||
Segment Portfolio Reclassifications | BBCC | |||||
Assets | |||||
Loans | 352,681 | 352,681 | |||
Allowance | (2,279) | (2,279) | |||
Segment Portfolio Reclassifications | Residential real estate | |||||
Assets | |||||
Loans | 0 | 0 | |||
Allowance | 0 | 0 | |||
Segment Portfolio Reclassifications | Consumer | |||||
Assets | |||||
Loans | (1,726,147) | (1,726,147) | |||
Allowance | 8,147 | 8,147 | |||
Segment Portfolio Reclassifications | Indirect | |||||
Assets | |||||
Loans | 935,584 | 935,584 | |||
Allowance | (5,319) | (5,319) | |||
Segment Portfolio Reclassifications | Direct | |||||
Assets | |||||
Loans | 228,524 | 228,524 | |||
Allowance | (1,863) | (1,863) | |||
Segment Portfolio Reclassifications | Home equity | |||||
Assets | |||||
Loans | 562,039 | 562,039 | |||
Allowance | $ (965) | $ (965) |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Available-for-Sale Investment Securities Portfolio (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 5,189,363 | $ 5,313,209 |
Unrealized Gains | 183,360 | 93,542 |
Unrealized Losses | (12,698) | (21,660) |
Allowance for Credit Losses for Investments | 0 | 0 |
Fair Value | 5,360,025 | 5,385,091 |
U.S. Treasury | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,379 | 17,567 |
Unrealized Gains | 354 | 117 |
Unrealized Losses | 0 | (2) |
Allowance for Credit Losses for Investments | 0 | 0 |
Fair Value | 11,733 | 17,682 |
U.S. government-sponsored entities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 515,217 | 596,595 |
Unrealized Gains | 3,954 | 1,027 |
Unrealized Losses | 0 | (4,638) |
Allowance for Credit Losses for Investments | 0 | 0 |
Fair Value | 519,171 | 592,984 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,089,212 | 3,151,550 |
Unrealized Gains | 121,282 | 41,363 |
Unrealized Losses | (494) | (9,052) |
Allowance for Credit Losses for Investments | 0 | 0 |
Fair Value | 3,210,000 | 3,183,861 |
States and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,251,515 | 1,232,497 |
Unrealized Gains | 51,841 | 44,193 |
Unrealized Losses | (961) | (1,047) |
Allowance for Credit Losses for Investments | 0 | 0 |
Fair Value | 1,302,395 | 1,275,643 |
Pooled trust preferred securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 13,798 | 13,811 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (6,376) | (5,589) |
Allowance for Credit Losses for Investments | 0 | 0 |
Fair Value | 7,422 | 8,222 |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 308,242 | 301,189 |
Unrealized Gains | 5,929 | 6,842 |
Unrealized Losses | (4,867) | (1,332) |
Allowance for Credit Losses for Investments | 0 | 0 |
Fair Value | $ 309,304 | $ 306,699 |
Investment Securities - Schedul
Investment Securities - Schedule of Proceeds from Sales or Calls and Realized Gain and Losses of Available-for-sale Investment Securities and Other Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from sales of investment securities available-for-sale | $ 236,410 | $ 8,681 |
Proceeds from calls of available-for-sale debt securities | 436,742 | 145,356 |
Total | 400,181 | 32,366 |
Realized gains on sales of available-for-sale debt securities | 5,595 | 71 |
Realized losses on sales of available-for-sale debt securities | (409) | (148) |
Net debt securities gains (losses) | 5,174 | (103) |
Calls | ||
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from calls of available-for-sale debt securities | 163,771 | 23,685 |
Realized gains on calls of available-for-sale debt securities | 13 | 3 |
Realized losses on calls of available-for-sale debt securities | $ (25) | $ (29) |
Investment Securities - Expecte
Investment Securities - Expected Maturities of Investment Securities Portfolio (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available-for-sale, Amortized Cost | ||
Within one year | $ 741,828 | |
One to five years | 2,591,483 | |
Five to ten years | 592,020 | |
Beyond ten years | 1,264,032 | |
Total | 5,189,363 | $ 5,313,209 |
Available-for-sale, Fair Value | ||
Within one year | 762,452 | |
One to five years | 2,691,307 | |
Five to ten years | 609,108 | |
Beyond ten years | 1,297,158 | |
Total | $ 5,360,025 | $ 5,385,091 |
Available-for-sale, Weighted Average Yield | ||
Within one year | 1.82% | |
One to five years | 2.73% | |
Five to ten years | 3.41% | |
Beyond ten years | 3.24% | |
Total | 2.80% |
Investment Securities - Availab
Investment Securities - Available-for-Sale Investment Securities with Unrealized Losses by Aggregated Major Security Type and Length of Time in Continuous Unrealized Loss Position (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-Sale, Less than 12 Months, Fair Value | $ 242,995 | $ 1,295,822 |
Available-for-Sale, Less than 12 Months, Unrealized Losses | (4,163) | (11,960) |
Available-for-Sale, 12 months or longer, Fair Value | 45,885 | 314,350 |
Available-for-Sale, 12 months or longer, Unrealized Losses | (8,535) | (9,700) |
Available-for-Sale, Fair Value | 288,880 | 1,610,172 |
Available-for-Sale, Unrealized Losses | (12,698) | (21,660) |
U.S. Treasury | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-Sale, Less than 12 Months, Fair Value | 999 | |
Available-for-Sale, Less than 12 Months, Unrealized Losses | (2) | |
Available-for-Sale, 12 months or longer, Fair Value | 0 | |
Available-for-Sale, 12 months or longer, Unrealized Losses | 0 | |
Available-for-Sale, Fair Value | 999 | |
Available-for-Sale, Unrealized Losses | 0 | (2) |
U.S. government-sponsored entities and agencies | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-Sale, Less than 12 Months, Fair Value | 357,647 | |
Available-for-Sale, Less than 12 Months, Unrealized Losses | (4,638) | |
Available-for-Sale, 12 months or longer, Fair Value | 0 | |
Available-for-Sale, 12 months or longer, Unrealized Losses | 0 | |
Available-for-Sale, Fair Value | 357,647 | |
Available-for-Sale, Unrealized Losses | 0 | (4,638) |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-Sale, Less than 12 Months, Fair Value | 66,182 | 786,245 |
Available-for-Sale, Less than 12 Months, Unrealized Losses | (295) | (6,122) |
Available-for-Sale, 12 months or longer, Fair Value | 13,308 | 212,056 |
Available-for-Sale, 12 months or longer, Unrealized Losses | (199) | (2,930) |
Available-for-Sale, Fair Value | 79,490 | 998,301 |
Available-for-Sale, Unrealized Losses | (494) | (9,052) |
States and political subdivisions | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-Sale, Less than 12 Months, Fair Value | 75,669 | 120,166 |
Available-for-Sale, Less than 12 Months, Unrealized Losses | (961) | (1,016) |
Available-for-Sale, 12 months or longer, Fair Value | 465 | 7,006 |
Available-for-Sale, 12 months or longer, Unrealized Losses | 0 | (31) |
Available-for-Sale, Fair Value | 76,134 | 127,172 |
Available-for-Sale, Unrealized Losses | (961) | (1,047) |
Pooled trust preferred securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-Sale, Less than 12 Months, Fair Value | 0 | 0 |
Available-for-Sale, Less than 12 Months, Unrealized Losses | 0 | 0 |
Available-for-Sale, 12 months or longer, Fair Value | 7,422 | 8,222 |
Available-for-Sale, 12 months or longer, Unrealized Losses | (6,376) | (5,589) |
Available-for-Sale, Fair Value | 7,422 | 8,222 |
Available-for-Sale, Unrealized Losses | (6,376) | (5,589) |
Other securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-Sale, Less than 12 Months, Fair Value | 101,144 | 30,765 |
Available-for-Sale, Less than 12 Months, Unrealized Losses | (2,907) | (182) |
Available-for-Sale, 12 months or longer, Fair Value | 24,690 | 87,066 |
Available-for-Sale, 12 months or longer, Unrealized Losses | (1,960) | (1,150) |
Available-for-Sale, Fair Value | 125,834 | 117,831 |
Available-for-Sale, Unrealized Losses | $ (4,867) | $ (1,332) |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2020USD ($)security | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Summary of Investment Holdings [Line Items] | |||
Accrued interest receivable on available-for-sale debt securities excluded from estimate of credit losses | $ 22,600,000 | ||
Other-than-temporary impairment loss | $ 0 | ||
Number of securities in security portfolio | security | 1,867 | ||
Number of securities in unrealized loss position | security | 186 | ||
Total investment securities - available-for-sale | $ 5,360,025,000 | $ 5,385,091,000 | |
Unrealized losses | 12,698,000 | 21,660,000 | |
Equity securities | 6,870,000 | 6,842,000 | |
Gains on equity securities | 100,000 | 200,000 | |
Impairments on equity securities without readily determinable fair value | 0 | 0 | |
Other Asstes | |||
Summary of Investment Holdings [Line Items] | |||
Equity securities without readily determinable fair value | 93,100,000 | 91,400,000 | |
Pooled trust preferred securities | |||
Summary of Investment Holdings [Line Items] | |||
Other-than-temporary impairment loss | $ 0 | $ 0 | |
Number of pooled trust preferred securities | security | 2 | ||
Total investment securities - available-for-sale | $ 7,422,000 | 8,222,000 | |
Unrealized losses | $ 6,376,000 | $ 5,589,000 |
Investment Securities - Trust P
Investment Securities - Trust Preferred Securities (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)issuerportfolio | Dec. 31, 2019USD ($) | |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Total | $ 5,189,363 | $ 5,313,209 |
Fair Value | 5,360,025 | $ 5,385,091 |
Pooled Trust Preferred Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Total | 13,798 | |
Fair Value | 7,422 | |
Available-for-Sale, Unrealized Gain/ (Loss) | $ (6,376) | |
Pooled Trust Preferred Securities | Pretsl XXVII LTD | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Pooled trust preferred securities, Class | B | |
Lowest Credit Rating | B | |
Total | $ 4,270 | |
Fair Value | 2,192 | |
Available-for-Sale, Unrealized Gain/ (Loss) | $ (2,078) | |
Number of Issuers Currently Performing | issuer | 32 | |
Number of Issuers Currently Remaining | portfolio | 41 | |
Actual Deferrals and Defaults as a Percent of Original Collateral | 14.40% | |
Expected Defaults as a % of Remaining Performing Collateral | 11.20% | |
Excess Subordination as a % of Current Performing Collateral | 33.50% | |
Pooled Trust Preferred Securities | Trapeza Ser 13A | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Pooled trust preferred securities, Class | A2A | |
Lowest Credit Rating | BBB | |
Total | $ 9,528 | |
Fair Value | 5,230 | |
Available-for-Sale, Unrealized Gain/ (Loss) | $ (4,298) | |
Number of Issuers Currently Performing | issuer | 39 | |
Number of Issuers Currently Remaining | portfolio | 41 | |
Actual Deferrals and Defaults as a Percent of Original Collateral | 4.50% | |
Expected Defaults as a % of Remaining Performing Collateral | 6.60% | |
Excess Subordination as a % of Current Performing Collateral | 51.60% | |
Single Issuer Trust Preferred Securities | JP Morgan Chase & Co | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Lowest Credit Rating | BBB- | |
Total | $ 4,800 | |
Fair Value | 3,600 | |
Available-for-Sale, Unrealized Gain/ (Loss) | (1,200) | |
Trust Preferred Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Total | 18,598 | |
Fair Value | 11,022 | |
Available-for-Sale, Unrealized Gain/ (Loss) | $ (7,576) |
Loans Held for Sale - Additiona
Loans Held for Sale - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Servicing Assets at Fair Value [Line Items] | ||
Mortgage loans held for sale | $ 54,209 | $ 46,898 |
Residential Mortgage Loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Mortgage loans held for sale | $ 54,200 | $ 46,900 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Additional Information (Detail) | 3 Months Ended | |||||
Mar. 31, 2020USD ($)portfolio | Mar. 31, 2020numberOfLoanPortfolios | Mar. 31, 2020 | Mar. 31, 2020segment | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Number of loan portfolios | portfolio | 4 | |||||
Number of loan segments | 7 | 7 | ||||
Accrued interest receivable, loans | $ 54,000,000 | |||||
Loan placed on nonaccrual when past due, number of days | 90 days | |||||
Loan participations | 849,400,000 | |||||
Loan participations sold | 401,600,000 | |||||
Loan participations retained | 447,800,000 | |||||
Troubled debt restructuring term | 6 months | |||||
Minimum number of days for loan charge off to be recorded | 120 days | |||||
Maximum number of days for loan charge off to be recorded | 180 days | |||||
Nonaccrual period for loans | 90 days | |||||
Financing receivable TDR's included with non-accrual loans | 11,800,000 | $ 13,800,000 | ||||
Financing receivable troubled debt restructurings specific reserves | 1,400,000 | 900,000 | ||||
Unfunded commitments on TDRs | $ 900,000 | $ 2,300,000 | ||||
Number of days for a loan to be considered to be in payment default | 90 days | |||||
Maximum | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Value of small commercial loans on nonaccrual status or 90 days or more delinquent | $ 250,000 | |||||
Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Percentage of risk-based capital | 206.00% | |||||
Regulatory guideline limit | 300.00% |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Schedule of Composition of Loans and Impact of Adoption (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | $ 12,384,612 | $ 12,117,524 | $ 12,117,524 | ||
Allowance | (106,380) | (54,619) | (54,619) | $ (55,559) | $ (55,461) |
Net loans | 12,278,232 | 12,062,905 | |||
Impact of ASC 326 Adoption | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 4,478 | ||||
Allowance | (41,347) | ||||
Net loans | (36,869) | ||||
Adjusted Balance | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 12,122,002 | 12,117,524 | |||
Allowance | (95,966) | (54,619) | |||
Net loans | 12,026,036 | ||||
Commercial | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 2,844,465 | 2,815,154 | 2,890,296 | ||
Allowance | (31,125) | (21,359) | (22,585) | (20,406) | (21,742) |
Commercial | Impact of ASC 326 Adoption | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 2,679 | ||||
Allowance | (7,150) | ||||
Commercial | Adjusted Balance | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 2,817,833 | 2,815,154 | |||
Allowance | (28,509) | (21,359) | |||
Commercial real estate | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 5,118,439 | 4,889,253 | 5,166,792 | ||
Allowance | (54,103) | (20,535) | (21,588) | (25,169) | (23,470) |
Commercial real estate | Impact of ASC 326 Adoption | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 1,637 | ||||
Allowance | (25,548) | ||||
Commercial real estate | Adjusted Balance | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 4,890,890 | 4,889,253 | |||
Allowance | (46,083) | (20,535) | |||
BBCC | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 367,139 | 352,681 | |||
Allowance | (5,417) | (2,279) | |||
BBCC | Impact of ASC 326 Adoption | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 33 | ||||
Allowance | (3,702) | ||||
BBCC | Adjusted Balance | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 352,714 | 352,681 | |||
Allowance | (5,981) | (2,279) | |||
Residential real estate | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 2,327,851 | 2,334,289 | 2,334,289 | ||
Allowance | (9,637) | (2,299) | (2,299) | (2,302) | (2,277) |
Residential real estate | Impact of ASC 326 Adoption | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 105 | ||||
Allowance | (6,986) | ||||
Residential real estate | Adjusted Balance | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 2,334,394 | 2,334,289 | |||
Allowance | (9,285) | (2,299) | |||
Consumer | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 1,726,147 | ||||
Allowance | (8,147) | $ (7,682) | $ (7,972) | ||
Indirect | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 953,136 | 935,584 | |||
Allowance | (3,666) | (5,319) | |||
Indirect | Impact of ASC 326 Adoption | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 10 | ||||
Allowance | 1,669 | ||||
Indirect | Adjusted Balance | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 935,594 | 935,584 | |||
Allowance | (3,650) | (5,319) | |||
Direct | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 211,793 | 228,524 | |||
Allowance | (822) | (1,863) | |||
Direct | Impact of ASC 326 Adoption | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 2 | ||||
Allowance | 1,059 | ||||
Direct | Adjusted Balance | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 228,526 | 228,524 | |||
Allowance | (804) | (1,863) | |||
Home equity | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 561,789 | 562,039 | |||
Allowance | (1,610) | (965) | |||
Home equity | Impact of ASC 326 Adoption | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 12 | ||||
Allowance | (689) | ||||
Home equity | Adjusted Balance | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 562,051 | 562,039 | |||
Allowance | (1,654) | (965) | |||
Direct Finance Leases | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | $ 44,400 | 47,200 | |||
Previously Reported | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 12,117,524 | 12,117,524 | |||
Allowance | (54,619) | (54,619) | |||
Previously Reported | Commercial | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 2,890,296 | 2,890,296 | |||
Allowance | (22,585) | (22,585) | |||
Previously Reported | Commercial real estate | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 5,166,792 | 5,166,792 | |||
Allowance | (21,588) | (21,588) | |||
Previously Reported | Residential real estate | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 2,334,289 | 2,334,289 | |||
Allowance | (2,299) | (2,299) | |||
Previously Reported | Consumer | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 1,726,147 | 1,726,147 | |||
Allowance | (8,147) | (8,147) | |||
Credit Risk Reclassification | Commercial | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | (75,142) | (75,142) | |||
Allowance | 1,226 | 1,226 | |||
Credit Risk Reclassification | Commercial real estate | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | (277,539) | (277,539) | |||
Allowance | 1,053 | 1,053 | |||
Credit Risk Reclassification | BBCC | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 352,681 | 352,681 | |||
Allowance | (2,279) | (2,279) | |||
Credit Risk Reclassification | Residential real estate | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 0 | 0 | |||
Allowance | 0 | 0 | |||
Credit Risk Reclassification | Consumer | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | (1,726,147) | (1,726,147) | |||
Allowance | 8,147 | 8,147 | |||
Credit Risk Reclassification | Indirect | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 935,584 | 935,584 | |||
Allowance | (5,319) | (5,319) | |||
Credit Risk Reclassification | Direct | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 228,524 | 228,524 | |||
Allowance | (1,863) | (1,863) | |||
Credit Risk Reclassification | Home equity | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 562,039 | 562,039 | |||
Allowance | $ (965) | $ (965) |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Schedule of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | $ 54,619 | $ 55,461 |
Charge-offs | (8,445) | (2,892) |
Recoveries | 1,909 | 1,947 |
Provision for Credit Losses | 16,950 | 1,043 |
Balance at End of Period | 106,380 | 55,559 |
Adjusted Balance | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 54,619 | |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 22,585 | 21,742 |
Charge-offs | (5,042) | (160) |
Recoveries | 357 | 375 |
Provision for Credit Losses | 7,301 | (1,551) |
Balance at End of Period | 31,125 | 20,406 |
Commercial | Adjusted Balance | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 21,359 | |
Commercial real estate | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 21,588 | 23,470 |
Charge-offs | (1,292) | (235) |
Recoveries | 669 | 570 |
Provision for Credit Losses | 8,643 | 1,364 |
Balance at End of Period | 54,103 | 25,169 |
Commercial real estate | Adjusted Balance | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 20,535 | |
BBCC | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Charge-offs | (15) | |
Recoveries | 66 | |
Provision for Credit Losses | (615) | |
Balance at End of Period | 5,417 | |
BBCC | Adjusted Balance | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 2,279 | |
Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 2,299 | 2,277 |
Charge-offs | (300) | (178) |
Recoveries | 169 | 72 |
Provision for Credit Losses | 483 | 131 |
Balance at End of Period | 9,637 | 2,302 |
Residential real estate | Adjusted Balance | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 2,299 | |
Home equity | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Charge-offs | (118) | |
Recoveries | 82 | |
Provision for Credit Losses | (8) | |
Balance at End of Period | 1,610 | |
Home equity | Adjusted Balance | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 965 | |
Indirect | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Charge-offs | (1,203) | |
Recoveries | 414 | |
Provision for Credit Losses | 805 | |
Balance at End of Period | 3,666 | |
Indirect | Adjusted Balance | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 5,319 | |
Direct | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Charge-offs | (475) | |
Recoveries | 152 | |
Provision for Credit Losses | 341 | |
Balance at End of Period | 822 | |
Direct | Adjusted Balance | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 1,863 | |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | $ 8,147 | 7,972 |
Charge-offs | (2,319) | |
Recoveries | 930 | |
Provision for Credit Losses | 1,099 | |
Balance at End of Period | $ 7,682 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Schedule of Allowance for Credit Losses on Unfunded Loan Commitments (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |
Balance at beginning of period | $ 2,656 |
Expense (reversal of expense) for credit losses | 1,745 |
Balance at end of period | 8,950 |
Impact of ASC 326 Adoption | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |
Balance at beginning of period | 4,549 |
Adjusted Balance | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |
Balance at end of period | $ 7,205 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Schedule of Risk Rating and Payment Performance (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | $ 12,384,612 | $ 12,117,524 | $ 12,117,524 |
Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 77,746 | ||
Auto | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 3,792 | ||
Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 1,701 | ||
Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 362,653 | ||
2016 | 190,051 | ||
2017 | 380,753 | ||
2018 | 339,179 | ||
2019 | 562,140 | ||
2020 | 216,352 | ||
Revolving Loans | 643,218 | ||
Revolving to Term Loans | 150,119 | ||
Total loans and leases outstanding | 2,844,465 | 2,815,154 | 2,890,296 |
Commercial | Real Estate - Construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 713,092 | ||
Commercial | Real Estate - Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 4,453,700 | ||
Commercial | Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 6,802 | ||
Commercial | Auto | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 396 | ||
Commercial | Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 1,522 | ||
Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 848,830 | ||
2016 | 641,326 | ||
2017 | 941,628 | ||
2018 | 902,976 | ||
2019 | 1,176,472 | ||
2020 | 280,380 | ||
Revolving Loans | 26,186 | ||
Revolving to Term Loans | 300,641 | ||
Total loans and leases outstanding | 5,118,439 | 4,889,253 | 5,166,792 |
Commercial real estate | Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 40,361 | ||
Commercial real estate | Auto | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 0 | ||
Commercial real estate | Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 179 | ||
BBCC | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 18,130 | ||
2016 | 32,928 | ||
2017 | 47,825 | ||
2018 | 63,508 | ||
2019 | 93,728 | ||
2020 | 26,287 | ||
Revolving Loans | 62,804 | ||
Revolving to Term Loans | 21,929 | ||
Total loans and leases outstanding | 367,139 | 352,681 | |
BBCC | Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 1,930 | ||
BBCC | Auto | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 246 | ||
BBCC | Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 0 | ||
Residential real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 847,460 | ||
2016 | 293,954 | ||
2017 | 304,424 | ||
2018 | 220,075 | ||
2019 | 561,419 | ||
2020 | 100,385 | ||
Revolving Loans | 0 | ||
Revolving to Term Loans | 134 | ||
Total loans and leases outstanding | 2,327,851 | 2,334,289 | 2,334,289 |
Residential real estate | Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 23,567 | 559,021 | |
Residential real estate | Auto | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 0 | 1,017,287 | |
Residential real estate | Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 0 | 149,839 | |
Residential real estate | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 826,831 | ||
2016 | 292,199 | ||
2017 | 303,763 | ||
2018 | 219,650 | ||
2019 | 561,322 | ||
2020 | 100,385 | ||
Revolving Loans | 0 | ||
Revolving to Term Loans | 134 | ||
Total loans and leases outstanding | 2,304,284 | 2,311,670 | |
Residential real estate | Performing | Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 555,025 | ||
Residential real estate | Performing | Auto | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 1,013,760 | ||
Residential real estate | Performing | Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 147,383 | ||
Residential real estate | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 20,629 | ||
2016 | 1,755 | ||
2017 | 661 | ||
2018 | 425 | ||
2019 | 97 | ||
2020 | 0 | ||
Revolving Loans | 0 | ||
Revolving to Term Loans | 0 | ||
Total loans and leases outstanding | 23,567 | 22,619 | |
Residential real estate | Nonperforming | Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 3,996 | ||
Residential real estate | Nonperforming | Auto | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 3,527 | ||
Residential real estate | Nonperforming | Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 2,456 | ||
Indirect | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 53,333 | ||
2016 | 100,600 | ||
2017 | 153,995 | ||
2018 | 199,779 | ||
2019 | 349,107 | ||
2020 | 96,230 | ||
Revolving Loans | 0 | ||
Revolving to Term Loans | 92 | ||
Total loans and leases outstanding | 953,136 | 935,584 | |
Indirect | Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 0 | ||
Indirect | Auto | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 2,885 | ||
Indirect | Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 0 | ||
Indirect | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 53,056 | ||
2016 | 99,915 | ||
2017 | 152,882 | ||
2018 | 199,211 | ||
2019 | 348,865 | ||
2020 | 96,230 | ||
Revolving Loans | 0 | ||
Revolving to Term Loans | 92 | ||
Total loans and leases outstanding | 950,251 | ||
Indirect | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 277 | ||
2016 | 685 | ||
2017 | 1,113 | ||
2018 | 568 | ||
2019 | 242 | ||
2020 | 0 | ||
Revolving Loans | 0 | ||
Revolving to Term Loans | 0 | ||
Total loans and leases outstanding | 2,885 | ||
Direct | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 30,342 | ||
2016 | 15,694 | ||
2017 | 28,515 | ||
2018 | 48,801 | ||
2019 | 46,653 | ||
2020 | 12,485 | ||
Revolving Loans | 27,834 | ||
Revolving to Term Loans | 1,469 | ||
Total loans and leases outstanding | 211,793 | 228,524 | |
Direct | Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 863 | ||
Direct | Auto | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 265 | ||
Direct | Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 0 | ||
Direct | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 29,807 | ||
2016 | 15,445 | ||
2017 | 28,370 | ||
2018 | 48,587 | ||
2019 | 46,602 | ||
2020 | 12,485 | ||
Revolving Loans | 27,834 | ||
Revolving to Term Loans | 1,468 | ||
Total loans and leases outstanding | 210,598 | ||
Direct | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 535 | ||
2016 | 249 | ||
2017 | 145 | ||
2018 | 214 | ||
2019 | 51 | ||
2020 | 0 | ||
Revolving Loans | 0 | ||
Revolving to Term Loans | 1 | ||
Total loans and leases outstanding | 1,195 | ||
Home equity | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 0 | ||
2016 | 566 | ||
2017 | 1,039 | ||
2018 | 719 | ||
2019 | 1,116 | ||
2020 | 0 | ||
Revolving Loans | 535,284 | ||
Revolving to Term Loans | 23,065 | ||
Total loans and leases outstanding | 561,789 | $ 562,039 | |
Home equity | Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 4,223 | ||
Home equity | Auto | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 0 | ||
Home equity | Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 0 | ||
Home equity | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 0 | ||
2016 | 240 | ||
2017 | 1,002 | ||
2018 | 719 | ||
2019 | 1,085 | ||
2020 | 0 | ||
Revolving Loans | 535,095 | ||
Revolving to Term Loans | 19,425 | ||
Total loans and leases outstanding | 557,566 | ||
Home equity | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 0 | ||
2016 | 326 | ||
2017 | 37 | ||
2018 | 0 | ||
2019 | 31 | ||
2020 | 0 | ||
Revolving Loans | 189 | ||
Revolving to Term Loans | 3,640 | ||
Total loans and leases outstanding | 4,223 | ||
Pass | Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 339,465 | ||
2016 | 177,397 | ||
2017 | 342,542 | ||
2018 | 312,229 | ||
2019 | 546,484 | ||
2020 | 213,893 | ||
Revolving Loans | 581,830 | ||
Revolving to Term Loans | 138,584 | ||
Total loans and leases outstanding | 2,652,424 | 2,702,605 | |
Pass | Commercial | Real Estate - Construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 665,512 | ||
Pass | Commercial | Real Estate - Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 4,191,455 | ||
Pass | Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 793,743 | ||
2016 | 596,312 | ||
2017 | 838,575 | ||
2018 | 864,477 | ||
2019 | 1,149,445 | ||
2020 | 280,341 | ||
Revolving Loans | 25,474 | ||
Revolving to Term Loans | 282,936 | ||
Total loans and leases outstanding | 4,831,303 | ||
Pass | BBCC | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 17,943 | ||
2016 | 30,762 | ||
2017 | 45,700 | ||
2018 | 61,865 | ||
2019 | 90,970 | ||
2020 | 26,069 | ||
Revolving Loans | 58,040 | ||
Revolving to Term Loans | 18,679 | ||
Total loans and leases outstanding | 350,028 | ||
Criticized | Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 9,386 | ||
2016 | 6,799 | ||
2017 | 12,704 | ||
2018 | 12,995 | ||
2019 | 4,707 | ||
2020 | 1,708 | ||
Revolving Loans | 39,157 | ||
Revolving to Term Loans | 1,356 | ||
Total loans and leases outstanding | 88,812 | 84,676 | |
Criticized | Commercial | Real Estate - Construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 34,651 | ||
Criticized | Commercial | Real Estate - Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 115,514 | ||
Criticized | Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 22,910 | ||
2016 | 12,915 | ||
2017 | 69,842 | ||
2018 | 7,933 | ||
2019 | 20,007 | ||
2020 | 0 | ||
Revolving Loans | 500 | ||
Revolving to Term Loans | 6,522 | ||
Total loans and leases outstanding | 140,629 | ||
Criticized | BBCC | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 0 | ||
2016 | 1,024 | ||
2017 | 522 | ||
2018 | 512 | ||
2019 | 877 | ||
2020 | 172 | ||
Revolving Loans | 4,044 | ||
Revolving to Term Loans | 1,419 | ||
Total loans and leases outstanding | 8,570 | ||
Classified - substandard | Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 9,935 | ||
2016 | 4,268 | ||
2017 | 13,345 | ||
2018 | 7,893 | ||
2019 | 5,421 | ||
2020 | 751 | ||
Revolving Loans | 18,326 | ||
Revolving to Term Loans | 3,397 | ||
Total loans and leases outstanding | 63,336 | 63,979 | |
Classified - substandard | Commercial | Real Estate - Construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 0 | ||
Classified - substandard | Commercial | Real Estate - Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 101,693 | ||
Classified - substandard | Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 12,944 | ||
2016 | 17,519 | ||
2017 | 27,025 | ||
2018 | 23,741 | ||
2019 | 2,878 | ||
2020 | 39 | ||
Revolving Loans | 212 | ||
Revolving to Term Loans | 10,792 | ||
Total loans and leases outstanding | 95,150 | ||
Classified - substandard | BBCC | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 0 | ||
2016 | 551 | ||
2017 | 1,028 | ||
2018 | 0 | ||
2019 | 1,443 | ||
2020 | 0 | ||
Revolving Loans | 644 | ||
Revolving to Term Loans | 1,008 | ||
Total loans and leases outstanding | 4,674 | ||
Classified - nonaccrual | Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 816 | ||
2016 | 784 | ||
2017 | 2,324 | ||
2018 | 5,905 | ||
2019 | 3,274 | ||
2020 | 0 | ||
Revolving Loans | 3,905 | ||
Revolving to Term Loans | 6,782 | ||
Total loans and leases outstanding | 23,790 | 22,240 | |
Classified - nonaccrual | Commercial | Real Estate - Construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 12,929 | ||
Classified - nonaccrual | Commercial | Real Estate - Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 38,822 | ||
Classified - nonaccrual | Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 15,352 | ||
2016 | 14,368 | ||
2017 | 1,830 | ||
2018 | 3,525 | ||
2019 | 2,177 | ||
2020 | 0 | ||
Revolving Loans | 0 | ||
Revolving to Term Loans | 391 | ||
Total loans and leases outstanding | 37,643 | ||
Classified - nonaccrual | BBCC | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 0 | ||
2016 | 538 | ||
2017 | 575 | ||
2018 | 1,070 | ||
2019 | 438 | ||
2020 | 46 | ||
Revolving Loans | 76 | ||
Revolving to Term Loans | 823 | ||
Total loans and leases outstanding | 3,566 | ||
Classified - doubtful | Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 3,051 | ||
2016 | 803 | ||
2017 | 9,838 | ||
2018 | 157 | ||
2019 | 2,254 | ||
2020 | 0 | ||
Revolving Loans | 0 | ||
Revolving to Term Loans | 0 | ||
Total loans and leases outstanding | 16,103 | 16,796 | |
Classified - doubtful | Commercial | Real Estate - Construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | 0 | ||
Classified - doubtful | Commercial | Real Estate - Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans and leases outstanding | $ 6,216 | ||
Classified - doubtful | Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 3,881 | ||
2016 | 212 | ||
2017 | 4,356 | ||
2018 | 3,300 | ||
2019 | 1,965 | ||
2020 | 0 | ||
Revolving Loans | 0 | ||
Revolving to Term Loans | 0 | ||
Total loans and leases outstanding | 13,714 | ||
Classified - doubtful | BBCC | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Prior to 2016 | 187 | ||
2016 | 53 | ||
2017 | 0 | ||
2018 | 61 | ||
2019 | 0 | ||
2020 | 0 | ||
Revolving Loans | 0 | ||
Revolving to Term Loans | 0 | ||
Total loans and leases outstanding | $ 301 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Schedule of Past Due Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | $ 78,400 | ||
Current | 12,306,212 | ||
Total loans and leases outstanding | 12,384,612 | $ 12,117,524 | $ 12,117,524 |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 14,441 | ||
Current | 2,830,024 | ||
Total loans and leases outstanding | 2,844,465 | 2,815,154 | 2,890,296 |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 21,726 | ||
Current | 5,096,713 | ||
Total loans and leases outstanding | 5,118,439 | 4,889,253 | 5,166,792 |
BBCC | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 809 | ||
Current | 366,330 | ||
Total loans and leases outstanding | 367,139 | 352,681 | |
Residential real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 27,753 | ||
Current | 2,300,098 | ||
Total loans and leases outstanding | 2,327,851 | 2,334,289 | 2,334,289 |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans and leases outstanding | $ 1,726,147 | ||
Indirect | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 7,660 | ||
Current | 945,476 | ||
Total loans and leases outstanding | 953,136 | 935,584 | |
Direct | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 2,021 | ||
Current | 209,772 | ||
Total loans and leases outstanding | 211,793 | 228,524 | |
Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 3,990 | ||
Current | 557,799 | ||
Total loans and leases outstanding | 561,789 | $ 562,039 | |
30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 33,632 | ||
30-59 Days Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 3,578 | ||
30-59 Days Past Due | Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 6,114 | ||
30-59 Days Past Due | BBCC | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 419 | ||
30-59 Days Past Due | Residential real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 13,895 | ||
30-59 Days Past Due | Indirect | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 6,358 | ||
30-59 Days Past Due | Direct | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 1,513 | ||
30-59 Days Past Due | Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 1,755 | ||
60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 10,286 | ||
60-89 Days Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 1,707 | ||
60-89 Days Past Due | Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 2,200 | ||
60-89 Days Past Due | BBCC | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 156 | ||
60-89 Days Past Due | Residential real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 4,603 | ||
60-89 Days Past Due | Indirect | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 963 | ||
60-89 Days Past Due | Direct | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 183 | ||
60-89 Days Past Due | Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 474 | ||
Past Due 90 Days or More | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 34,482 | ||
Past Due 90 Days or More | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 9,156 | ||
Past Due 90 Days or More | Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 13,412 | ||
Past Due 90 Days or More | BBCC | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 234 | ||
Past Due 90 Days or More | Residential real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 9,255 | ||
Past Due 90 Days or More | Indirect | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 339 | ||
Past Due 90 Days or More | Direct | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | 325 | ||
Past Due 90 Days or More | Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due | $ 1,761 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Schedule of Nonaccrual Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Amortized Cost | $ 126,987 | $ 132,431 |
Nonaccrual With No Related Allowance | 20,355 | |
Past Due 90 Days or More and Accruing | 658 | |
Interest Income Recognized on Nonaccrual | 0 | |
Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Amortized Cost | 39,893 | 40,103 |
Nonaccrual With No Related Allowance | 7,040 | |
Past Due 90 Days or More and Accruing | 3 | |
Interest Income Recognized on Nonaccrual | 0 | |
Commercial real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Amortized Cost | 51,355 | 58,350 |
Nonaccrual With No Related Allowance | 13,281 | |
Past Due 90 Days or More and Accruing | 165 | |
Interest Income Recognized on Nonaccrual | 0 | |
BBCC | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Amortized Cost | 3,869 | 4,530 |
Nonaccrual With No Related Allowance | 0 | |
Past Due 90 Days or More and Accruing | 0 | |
Interest Income Recognized on Nonaccrual | 0 | |
Residential real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Amortized Cost | 23,567 | 20,970 |
Nonaccrual With No Related Allowance | 0 | |
Past Due 90 Days or More and Accruing | 112 | |
Interest Income Recognized on Nonaccrual | 0 | |
Indirect | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Amortized Cost | 2,885 | 3,318 |
Nonaccrual With No Related Allowance | 0 | |
Past Due 90 Days or More and Accruing | 81 | |
Interest Income Recognized on Nonaccrual | 0 | |
Direct | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Amortized Cost | 1,195 | 1,303 |
Nonaccrual With No Related Allowance | 0 | |
Past Due 90 Days or More and Accruing | 102 | |
Interest Income Recognized on Nonaccrual | 0 | |
Home equity | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Amortized Cost | 4,223 | $ 3,857 |
Nonaccrual With No Related Allowance | 34 | |
Past Due 90 Days or More and Accruing | 195 | |
Interest Income Recognized on Nonaccrual | $ 0 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Schedule of Types of Collateral (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | $ 12,384,612 | $ 12,117,524 | $ 12,117,524 |
Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 77,746 | ||
Blanket Lien | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 24,939 | ||
Investment Securities/Cash | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 11,475 | ||
Auto | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 3,792 | ||
Other | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 1,701 | ||
Commercial | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 2,844,465 | 2,815,154 | 2,890,296 |
Commercial | Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 6,802 | ||
Commercial | Blanket Lien | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 23,175 | ||
Commercial | Investment Securities/Cash | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 8,209 | ||
Commercial | Auto | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 396 | ||
Commercial | Other | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 1,522 | ||
Commercial real estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 5,118,439 | 4,889,253 | 5,166,792 |
Commercial real estate | Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 40,361 | ||
Commercial real estate | Blanket Lien | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 150 | ||
Commercial real estate | Investment Securities/Cash | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 3,199 | ||
Commercial real estate | Auto | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 0 | ||
Commercial real estate | Other | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 179 | ||
BBCC | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 367,139 | 352,681 | |
BBCC | Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 1,930 | ||
BBCC | Blanket Lien | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 1,614 | ||
BBCC | Investment Securities/Cash | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 59 | ||
BBCC | Auto | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 246 | ||
BBCC | Other | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 0 | ||
Residential real estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 2,327,851 | 2,334,289 | 2,334,289 |
Residential real estate | Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 23,567 | 559,021 | |
Residential real estate | Blanket Lien | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 0 | ||
Residential real estate | Investment Securities/Cash | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 0 | ||
Residential real estate | Auto | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 0 | 1,017,287 | |
Residential real estate | Other | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 0 | $ 149,839 | |
Indirect | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 953,136 | 935,584 | |
Indirect | Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 0 | ||
Indirect | Blanket Lien | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 0 | ||
Indirect | Investment Securities/Cash | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 0 | ||
Indirect | Auto | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 2,885 | ||
Indirect | Other | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 0 | ||
Direct | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 211,793 | 228,524 | |
Direct | Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 863 | ||
Direct | Blanket Lien | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 0 | ||
Direct | Investment Securities/Cash | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 8 | ||
Direct | Auto | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 265 | ||
Direct | Other | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 0 | ||
Home equity | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 561,789 | $ 562,039 | |
Home equity | Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 4,223 | ||
Home equity | Blanket Lien | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 0 | ||
Home equity | Investment Securities/Cash | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 0 | ||
Home equity | Auto | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | 0 | ||
Home equity | Other | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total loans | $ 0 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Schedule of Activity in Troubled Debt Restructurings (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Troubled Debt Restructuring [Roll Forward] | ||
Beginning Balance | $ 31,738 | $ 43,710 |
(Charge-offs)/ Recoveries | 1,961 | (85) |
(Payments)/ Disbursements | (1,103) | (2,792) |
Additions | 0 | 5,510 |
Ending Balance | 28,674 | 46,343 |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Roll Forward] | ||
Beginning Balance | 12,412 | 10,275 |
(Charge-offs)/ Recoveries | 695 | (7) |
(Payments)/ Disbursements | (789) | (1,029) |
Additions | 0 | 2,407 |
Ending Balance | 10,928 | 11,646 |
Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Roll Forward] | ||
Beginning Balance | 14,277 | 27,671 |
(Charge-offs)/ Recoveries | 1,272 | (75) |
(Payments)/ Disbursements | (157) | (1,562) |
Additions | 0 | 3,103 |
Ending Balance | 12,848 | 29,137 |
BBCC | ||
Financing Receivable, Troubled Debt Restructuring [Roll Forward] | ||
Beginning Balance | 578 | |
(Charge-offs)/ Recoveries | 0 | |
(Payments)/ Disbursements | (16) | |
Additions | 0 | |
Ending Balance | 562 | |
Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Roll Forward] | ||
Beginning Balance | 3,107 | 3,390 |
(Charge-offs)/ Recoveries | 0 | 0 |
(Payments)/ Disbursements | (67) | (143) |
Additions | 0 | 0 |
Ending Balance | 3,040 | 3,247 |
Indirect | ||
Financing Receivable, Troubled Debt Restructuring [Roll Forward] | ||
Beginning Balance | 0 | |
(Charge-offs)/ Recoveries | (3) | |
(Payments)/ Disbursements | (3) | |
Additions | 0 | |
Ending Balance | 0 | |
Direct | ||
Financing Receivable, Troubled Debt Restructuring [Roll Forward] | ||
Beginning Balance | 983 | |
(Charge-offs)/ Recoveries | (2) | |
(Payments)/ Disbursements | (63) | |
Additions | 0 | |
Ending Balance | 922 | |
Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Roll Forward] | ||
Beginning Balance | 381 | |
(Charge-offs)/ Recoveries | (1) | |
(Payments)/ Disbursements | (8) | |
Additions | 0 | |
Ending Balance | $ 374 | |
Consumer | ||
Financing Receivable, Troubled Debt Restructuring [Roll Forward] | ||
Beginning Balance | 2,374 | |
(Charge-offs)/ Recoveries | (3) | |
(Payments)/ Disbursements | (58) | |
Additions | 0 | |
Ending Balance | $ 2,313 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Schedule of Loans by Class Modified as Troubled Debt Restructuring (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)loan | Mar. 31, 2019USD ($)loan | |
Receivables [Abstract] | ||
Number of loans | loan | 0 | 4 |
Pre-modification outstanding recorded investment | $ 0 | $ 5,510 |
Post-modification outstanding recorded investment | $ 0 | $ 5,510 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Schedule of Allowance for Credit Losses and Amortized Cost Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for loan losses: | |||||
Individually evaluated for impairment | $ 8,897 | ||||
Collectively evaluated for impairment | 45,527 | ||||
Total allowance for loan losses | $ 106,380 | $ 54,619 | 54,619 | $ 55,559 | $ 55,461 |
Loans and leases outstanding: | |||||
Individually evaluated for impairment | 104,767 | ||||
Total loans and leases outstanding | 12,384,612 | 12,117,524 | 12,117,524 | ||
Financial Asset Acquired with Credit Deterioration | |||||
Allowance for loan losses: | |||||
Total allowance for loan losses | 195 | ||||
Loans and leases outstanding: | |||||
Collectively evaluated for impairment | 11,978,895 | ||||
Total loans and leases outstanding | 33,862 | ||||
Commercial | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 7,891 | ||||
Collectively evaluated for impairment | 14,692 | ||||
Total allowance for loan losses | 31,125 | 21,359 | 22,585 | 20,406 | 21,742 |
Loans and leases outstanding: | |||||
Individually evaluated for impairment | 41,479 | ||||
Total loans and leases outstanding | 2,844,465 | 2,815,154 | 2,890,296 | ||
Commercial | Financial Asset Acquired with Credit Deterioration | |||||
Allowance for loan losses: | |||||
Total allowance for loan losses | 2 | ||||
Loans and leases outstanding: | |||||
Collectively evaluated for impairment | 2,843,536 | ||||
Total loans and leases outstanding | 5,281 | ||||
Commercial real estate | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 1,006 | ||||
Collectively evaluated for impairment | 20,582 | ||||
Total allowance for loan losses | 54,103 | 20,535 | 21,588 | 25,169 | 23,470 |
Loans and leases outstanding: | |||||
Individually evaluated for impairment | 63,288 | ||||
Total loans and leases outstanding | 5,118,439 | 4,889,253 | 5,166,792 | ||
Commercial real estate | Financial Asset Acquired with Credit Deterioration | |||||
Allowance for loan losses: | |||||
Total allowance for loan losses | 0 | ||||
Loans and leases outstanding: | |||||
Collectively evaluated for impairment | 5,084,737 | ||||
Total loans and leases outstanding | 18,767 | ||||
Residential real estate | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 2,299 | ||||
Total allowance for loan losses | 9,637 | 2,299 | 2,299 | 2,302 | 2,277 |
Loans and leases outstanding: | |||||
Individually evaluated for impairment | 0 | ||||
Total loans and leases outstanding | $ 2,327,851 | $ 2,334,289 | 2,334,289 | ||
Residential real estate | Financial Asset Acquired with Credit Deterioration | |||||
Allowance for loan losses: | |||||
Total allowance for loan losses | 0 | ||||
Loans and leases outstanding: | |||||
Collectively evaluated for impairment | 2,326,907 | ||||
Total loans and leases outstanding | 7,382 | ||||
Consumer | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 7,954 | ||||
Total allowance for loan losses | 8,147 | $ 7,682 | $ 7,972 | ||
Loans and leases outstanding: | |||||
Individually evaluated for impairment | 0 | ||||
Total loans and leases outstanding | 1,726,147 | ||||
Consumer | Financial Asset Acquired with Credit Deterioration | |||||
Allowance for loan losses: | |||||
Total allowance for loan losses | 193 | ||||
Loans and leases outstanding: | |||||
Collectively evaluated for impairment | 1,723,715 | ||||
Total loans and leases outstanding | $ 2,432 |
Loans and Allowance for Cred_14
Loans and Allowance for Credit Losses - Schedule of Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2019 | |
Recorded Investment | ||
Total | $ 109,239 | |
Unpaid Principal Balance | ||
Total | 110,353 | |
Related Allowance | 8,991 | |
Average Recorded Investment | ||
Total | $ 121,139 | |
Commercial | ||
Recorded Investment | ||
With no related allowance recorded | 23,227 | |
With an allowance recorded | 18,252 | |
Unpaid Principal Balance | ||
With no related allowance recorded | 23,665 | |
With an allowance recorded | 18,305 | |
Related Allowance | 7,891 | |
Average Recorded Investment | ||
With no related allowance recorded | 23,688 | |
With an allowance recorded | 11,347 | |
Commercial real estate | ||
Recorded Investment | ||
With an allowance recorded | 12,685 | |
Unpaid Principal Balance | ||
With an allowance recorded | 12,685 | |
Related Allowance | 1,006 | |
Commercial real estate | Real Estate - Construction | ||
Recorded Investment | ||
With no related allowance recorded | 12,929 | |
Unpaid Principal Balance | ||
With no related allowance recorded | 12,929 | |
Average Recorded Investment | ||
With no related allowance recorded | 5,477 | |
With an allowance recorded | 8,690 | |
Commercial real estate | Real Estate - Other | ||
Recorded Investment | ||
With no related allowance recorded | 37,674 | |
Unpaid Principal Balance | ||
With no related allowance recorded | 38,112 | |
Average Recorded Investment | ||
With no related allowance recorded | 40,135 | |
With an allowance recorded | 26,279 | |
Residential real estate | ||
Recorded Investment | ||
With no related allowance recorded | 1,774 | |
With an allowance recorded | 1,201 | |
Unpaid Principal Balance | ||
With no related allowance recorded | 1,794 | |
With an allowance recorded | 1,201 | |
Related Allowance | 39 | |
Average Recorded Investment | ||
With no related allowance recorded | 2,289 | |
With an allowance recorded | 881 | |
Consumer | ||
Recorded Investment | ||
With no related allowance recorded | 403 | |
With an allowance recorded | 1,094 | |
Unpaid Principal Balance | ||
With no related allowance recorded | 568 | |
With an allowance recorded | 1,094 | |
Related Allowance | $ 55 | |
Average Recorded Investment | ||
With no related allowance recorded | 660 | |
With an allowance recorded | $ 1,693 |
Other Real Estate Owned - Activ
Other Real Estate Owned - Activity in Other Real Estate Owned (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Real Estate [Roll Forward] | ||
Balance at beginning of period | $ 2,169 | $ 3,232 |
Additions | 146 | 394 |
Sales | (113) | (272) |
Impairments | (39) | (75) |
Balance at end of period | 2,163 | 3,279 |
Repossessed personal property | $ 400 | $ 400 |
Other Real Estate Owned - Addit
Other Real Estate Owned - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Regulatory Assets [Abstract] | ||
Value of foreclosed residential real estate property | $ 0.5 | $ 0.5 |
Value of mortgage loans in process of foreclosure | $ 5.1 | $ 3.7 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 593,850 | $ 617,284 |
Accumulated depreciation | (131,486) | (126,359) |
Premises and equipment, net | 462,364 | 490,925 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 71,451 | 79,569 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Buildings | 360,462 | 380,925 |
Furniture, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 117,566 | 112,654 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 44,371 | $ 44,136 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 8,594 | $ 6,443 |
Leases - Additional Information
Leases - Additional Information (Detail) | Mar. 31, 2020 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 10 years |
Finance lease term | 10 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 20 years |
Finance lease term | 20 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Finance lease cost: | ||
Total | $ 9,298 | $ 4,463 |
Occupancy/equipment expense | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 9,181 | 4,402 |
Occupancy expense | ||
Finance lease cost: | ||
Amortization of right-of-use assets | 166 | 158 |
Short-term lease cost | 1 | 1 |
Sub-lease income | (128) | (179) |
Interest Expense | ||
Finance lease cost: | ||
Interest on lease liabilities | $ 78 | $ 81 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
Operating lease right-of-use assets | $ 86,819 | $ 95,477 |
Operating lease liabilities | 95,830 | 99,500 |
Finance Leases | ||
Premises and equipment, net | 7,004 | 7,170 |
Other borrowings | $ 7,284 | $ 7,406 |
Weighted-Average Remaining Lease Term (in Years) | ||
Operating leases | 10 years 6 months | 10 years 7 months 6 days |
Finance leases | 11 years | 11 years 3 months 18 days |
Weighted-Average Discount Rate | ||
Operating leases | 3.43% | 3.45% |
Finance leases | 4.44% | 4.43% |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 4,193 | $ 4,436 |
Operating cash flows from finance leases | 78 | 81 |
Financing cash flows from finance leases | $ 122 | $ 111 |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Lease Liability by Lease Classification (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2020 | $ 12,306 | |
2021 | 15,492 | |
2022 | 13,695 | |
2023 | 9,078 | |
2024 | 7,840 | |
Thereafter | 56,858 | |
Total undiscounted lease payments | 115,269 | |
Amounts representing interest | (19,439) | |
Lease liability | 95,830 | $ 99,500 |
Finance Leases | ||
2020 | 603 | |
2021 | 809 | |
2022 | 815 | |
2023 | 830 | |
2024 | 858 | |
Thereafter | 5,374 | |
Total undiscounted lease payments | 9,289 | |
Amounts representing interest | (2,005) | |
Lease liability | $ 7,284 | $ 7,406 |
Leases - Schedule of Maturity_2
Leases - Schedule of Maturity Analysis of Tenant Leases (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Tenant Leases | |
2020 | $ 1,832 |
2021 | 2,295 |
2022 | 1,941 |
2023 | 1,536 |
2024 | 1,409 |
Thereafter | 2,520 |
Total undiscounted lease payments | $ 11,533 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 1,036,994 | $ 1,036,258 |
Acquisitions and adjustments | 0 | 0 |
Balance at end of period | $ 1,036,994 | $ 1,036,258 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | Aug. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Goodwill [Line Items] | |||
Goodwill impairment | $ 0 | ||
Impairment charges | $ 0 | $ 0 | |
Amortization of other intangible assets | $ 3,776,000 | $ 4,472,000 | |
Core Deposits and Other Intangible Assets | Minimum | |||
Goodwill [Line Items] | |||
Estimated useful lives of core deposits and customer relationships | 5 years | ||
Core Deposits and Other Intangible Assets | Maximum | |||
Goodwill [Line Items] | |||
Estimated useful lives of core deposits and customer relationships | 15 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Gross Carrying Amounts and Accumulated Amortization of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 135,598 | $ 135,598 |
Accumulated Amortization and Impairment | (79,269) | (75,493) |
Net Carrying Amount | 56,329 | 60,105 |
Core deposit | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 119,051 | 119,051 |
Accumulated Amortization and Impairment | (66,488) | (63,020) |
Net Carrying Amount | 52,563 | 56,031 |
Customer trust relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,547 | 16,547 |
Accumulated Amortization and Impairment | (12,781) | (12,473) |
Net Carrying Amount | $ 3,766 | $ 4,074 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense for Future Years (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2020 remaining | $ 10,315 | |
2021 | 11,336 | |
2022 | 9,014 | |
2023 | 7,053 | |
2024 | 5,645 | |
Thereafter | 12,966 | |
Net Carrying Amount | $ 56,329 | $ 60,105 |
Loan Servicing Rights - Additio
Loan Servicing Rights - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
Transfers and Servicing [Abstract] | |||
Loan servicing rights | $ 24,132 | $ 25,368 | $ 24,254 |
Principal balance of loans serviced for others | $ 3,467,000 | 3,445,000 | |
Percentage of mortgage loan | 99.80% | ||
Funds held in escrow | $ 28,400 | 12,700 | |
Fair value of servicing rights | $ 24,100 | $ 26,500 | |
Fair value at discount rate | 9.00% | 12.00% | |
Fair value inputs weighted average prepayment speed | 16.00% | 10.00% |
Loan Servicing Rights - Compone
Loan Servicing Rights - Components of Loan Servicing Rights and Valuation Allowance (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Servicing asset: | |||
Balance at beginning of period | $ 25,399 | $ 24,512 | |
Additions | 1,731 | 659 | |
Amortization | (1,555) | (900) | |
Balance before valuation allowance at end of period | 25,575 | 24,271 | |
Valuation allowance: | |||
Balance at beginning of period | (31) | (15) | |
(Additions)/recoveries | (1,412) | (2) | |
Balance at end of period | (1,443) | (17) | |
Loan servicing rights, net | $ 24,132 | $ 24,254 | $ 25,368 |
Qualified Affordable Housing _3
Qualified Affordable Housing Projects and Other Tax Credit Investments - Schedule of Qualified Affordable Housing Projects and Other Tax Credit Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Investment Holdings [Line Items] | |||
Investment | $ 61,820 | $ 59,661 | |
Unfunded Commitment | 30,472 | 25,926 | |
Amortization Expense | 6,291 | $ 1,052 | |
Tax Expense (Benefit) Recognized | (2,775) | (1,286) | |
LIHTC | |||
Investment Holdings [Line Items] | |||
Investment, Proportional amortization | 28,909 | 29,735 | |
Unfunded Commitment, Proportional amortization | 3,907 | 3,911 | |
Amortization Expense | 776 | 792 | |
Tax Expense (Benefit) Recognized | (1,019) | (1,042) | |
FHTC | |||
Investment Holdings [Line Items] | |||
Investment, Equity | 25,760 | 22,403 | |
Unfunded Commitment, Equity | 22,896 | 17,886 | |
Amortization Expense | 5,143 | ||
Tax Expense (Benefit) Recognized | (1,356) | ||
Renewable Energy | |||
Investment Holdings [Line Items] | |||
Investment, Equity | 7,151 | 7,523 | |
Unfunded Commitment, Equity | 3,669 | $ 4,129 | |
Amortization Expense | 372 | 260 | |
Tax Expense (Benefit) Recognized | $ (400) | $ (244) |
Securities Sold Under Agreeme_3
Securities Sold Under Agreements to Repurchase - Schedule of Securities Sold under Agreements to Repurchase and Related Weighted-Average Interest Rates (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
Securities Sold under Agreements to Repurchase [Abstract] | |||
Securities sold under agreements to repurchase | $ 318,067,000 | $ 327,782,000 | $ 342,480,000 |
Average amount outstanding during the period | 329,091,000 | 337,786,000 | 361,261,000 |
Maximum amount outstanding at any month-end during the period | $ 318,067,000 | $ 337,185,000 | $ 367,884,000 |
Weighted average interest rate during period | 0.47% | 0.55% | 0.74% |
Weighted average interest rate at end of period | 0.22% | 0.53% | 0.79% |
Securities Sold Under Agreeme_4
Securities Sold Under Agreements to Repurchase - Schedule of Remaining Contractual Maturity of Secured Borrowings and Class of Collateral Pledged Under Repurchase Agreements (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | $ 318,067 | $ 327,782 | $ 342,480 |
U.S. Treasury | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 318,067 | ||
Overnight and Continuous | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 318,067 | ||
Overnight and Continuous | U.S. Treasury | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 318,067 | ||
Up to 30 Days | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 0 | ||
Up to 30 Days | U.S. Treasury | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 0 | ||
30-90 Days | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 0 | ||
30-90 Days | U.S. Treasury | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 0 | ||
Greater Than 90 days | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 0 | ||
Greater Than 90 days | U.S. Treasury | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | $ 0 |
Securities Sold Under Agreeme_5
Securities Sold Under Agreements to Repurchase - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
Gross outstanding balance of repurchase agreements collateralized by securities percentage | 121.00% |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances - Summary of FHLB Advances (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances (fixed rates 0.31% to 4.96% and variable rates 0.09% to 1.82%) maturing April 2020 to January 2030 | $ 2,100,660 | $ 1,800,664 |
ASC 815 fair value hedge and other basis adjustments | 29,603 | 22,183 |
Federal Home Loan Bank advances | $ 2,130,263 | $ 1,822,847 |
Minimum | FHLB Advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Fixed rates | 0.31% | |
Variable rates | 0.09% | |
Maximum | FHLB Advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Fixed rates | 4.96% | |
Variable rates | 1.82% |
Federal Home Loan Bank Advanc_4
Federal Home Loan Bank Advances - Additional Information (Detail) | Mar. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted-average rates of FHLB advances | 1.79% | 2.19% |
FHLB Advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Percentage of borrowings collateralized by investment securities and residential real estate loans | 140.00% |
Federal Home Loan Bank Advanc_5
Federal Home Loan Bank Advances - Summary of Contractual Maturities of FHLB Advances (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | ||
Due in 2020 | $ 125,000 | |
Due in 2021 | 20,000 | |
Due in 2022 | 130,500 | |
Due in 2023 | 160 | |
Due in 2024 | 375,000 | |
Thereafter | 1,450,000 | |
ASC 815 fair value hedge and other basis adjustments | 29,603 | $ 22,183 |
Total | $ 2,130,263 | $ 1,822,847 |
Other Borrowings - Summary of O
Other Borrowings - Summary of Other Borrowings (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Nov. 01, 2017 | Aug. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Lease liability | $ 7,284 | $ 7,406 | ||
Other borrowings | 236,114 | 243,685 | ||
Old National Bank | ||||
Debt Instrument [Line Items] | ||||
Other basis adjustments | 495 | 517 | ||
Lease liability | 7,284 | 7,406 | ||
Old National Bancorp | ||||
Debt Instrument [Line Items] | ||||
Other basis adjustments | $ (3,082) | (2,833) | ||
Senior Unsecured Notes | Old National Bancorp | ||||
Debt Instrument [Line Items] | ||||
Fixed rates | 4.125% | 4.125% | ||
Senior unsecured notes (fixed rate 4.125% maturing August 2024) | $ 175,000 | 175,000 | $ 175,000 | |
Unamortized debt issuance costs related to senior unsecured notes | (676) | (715) | ||
Junior Subordinated Debentures | Old National Bancorp | ||||
Debt Instrument [Line Items] | ||||
Junior subordinated debentures (variable rates of 2.34% to 5.62%) maturing April 2032 to June 2037 | 45,093 | 52,310 | ||
Subordinated Debt | Old National Bank | ||||
Debt Instrument [Line Items] | ||||
Fixed rates | 5.75% | |||
Subordinated debentures (fixed rate 5.75%) | $ 12,000 | $ 12,000 | ||
Minimum | Junior Subordinated Debentures | Old National Bancorp | ||||
Debt Instrument [Line Items] | ||||
Variable rates | 2.34% | |||
Maximum | Junior Subordinated Debentures | Old National Bancorp | ||||
Debt Instrument [Line Items] | ||||
Variable rates | 5.62% |
Other Borrowings - Contractual
Other Borrowings - Contractual Maturities of Other Borrowings (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Due in 2020 | $ 376 | |
Due in 2021 | 524 | |
Due in 2022 | 553 | |
Due in 2023 | 591 | |
Due in 2024 | 175,643 | |
Thereafter | 61,690 | |
Unamortized debt issuance costs and other basis adjustments | (3,263) | |
Total | $ 236,114 | $ 243,685 |
Other Borrowings - Additional I
Other Borrowings - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | ||||
Mar. 31, 2020 | Feb. 29, 2020 | Dec. 31, 2019 | Nov. 01, 2017 | Aug. 31, 2014 | |
Debt Instrument [Line Items] | |||||
Lease liability | $ 7,284 | $ 7,406 | |||
Old National Bank | |||||
Debt Instrument [Line Items] | |||||
Lease liability | 7,284 | 7,406 | |||
Junior Subordinated Debentures | Trust Preferred Securities | |||||
Debt Instrument [Line Items] | |||||
Redemption of debentures | $ 3,100 | $ 4,100 | |||
Debt instrument floating rate at redemption | 4.71% | 5.36% | |||
Subordinated Debentures | Anchor Bank (MN) | Subordinated Fixed-to-Floating Notes | |||||
Debt Instrument [Line Items] | |||||
Value of subordinated fixed-to-floating notes assumed | $ 12,000 | ||||
LIBOR rate | 4.356% | ||||
Old National Bancorp | Senior Unsecured Notes | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 175,000 | $ 175,000 | $ 175,000 | ||
Fixed rates | 4.125% | 4.125% |
Other Borrowings - Summary of T
Other Borrowings - Summary of Terms of Outstanding Junior Subordinated Debentures (Detail) - Trust Preferred Securities - Junior Subordinated Debentures | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 45,093,000 |
VFSC Capital Trust I | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 3,093,000 |
Rate | 5.62% |
VFSC Capital Trust I | LIBOR | |
Debt Instrument [Line Items] | |
LIBOR rate | 3.70% |
St. Joseph Capital Trust II | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 5,000,000 |
Rate | 2.59% |
St. Joseph Capital Trust II | LIBOR | |
Debt Instrument [Line Items] | |
LIBOR rate | 1.75% |
Anchor Capital Trust III | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 5,000,000 |
Rate | 3.00% |
Anchor Capital Trust III | LIBOR | |
Debt Instrument [Line Items] | |
LIBOR rate | 1.55% |
Home Federal Statutory Trust I | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 15,000,000 |
Rate | 2.39% |
Home Federal Statutory Trust I | LIBOR | |
Debt Instrument [Line Items] | |
LIBOR rate | 1.65% |
Monroe Bancorp Capital Trust I | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 3,000,000 |
Rate | 3.47% |
Monroe Bancorp Capital Trust I | LIBOR | |
Debt Instrument [Line Items] | |
LIBOR rate | 1.60% |
Tower Capital Trust 3 | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 9,000,000 |
Rate | 3.27% |
Tower Capital Trust 3 | LIBOR | |
Debt Instrument [Line Items] | |
LIBOR rate | 1.69% |
Monroe Bancorp Statutory Trust II | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 5,000,000 |
Rate | 2.34% |
Monroe Bancorp Statutory Trust II | LIBOR | |
Debt Instrument [Line Items] | |
LIBOR rate | 1.60% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of AOCI (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 2,852,453 | $ 2,689,570 |
Other comprehensive income (loss) before reclassifications | 86,255 | 47,415 |
Amounts reclassified from AOCI to income | (4,305) | 155 |
Ending balance | 2,823,435 | 2,751,872 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 56,207 | (44,950) |
Ending balance | 138,157 | 2,620 |
Unrealized Gains and Losses on Available- for-Sale Debt Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 56,131 | (37,348) |
Other comprehensive income (loss) before reclassifications | 80,369 | 47,711 |
Amounts reclassified from AOCI to income | (4,000) | 79 |
Ending balance | 132,500 | 10,442 |
Unrealized Gains and Losses on Held-to- Maturity Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0 | (8,515) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from AOCI to income | 0 | 351 |
Ending balance | 0 | (8,164) |
Gains and Losses on Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 240 | 1,099 |
Other comprehensive income (loss) before reclassifications | 5,886 | (296) |
Amounts reclassified from AOCI to income | (325) | (290) |
Ending balance | 5,801 | 513 |
Defined Benefit Pension Plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (164) | (186) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from AOCI to income | 20 | 15 |
Ending balance | $ (144) | $ (171) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Debt securities gains (losses), net | $ 5,174 | $ (103) |
Income tax (expense) benefit | (2,939) | (13,104) |
Interest income (expense) | 143,771 | 147,048 |
Salaries and employee benefits | (27) | (20) |
Net income | 22,640 | 56,276 |
Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | 4,305 | (155) |
Amount Reclassified from AOCI | Unrealized Gains and Losses on Available- for-Sale Debt Securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Debt securities gains (losses), net | 5,174 | (103) |
Income tax (expense) benefit | (1,174) | 24 |
Net income | 4,000 | (79) |
Amount Reclassified from AOCI | Unrealized Gains and Losses on Held-to- Maturity Securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax (expense) benefit | 0 | 106 |
Interest income (expense) | 0 | (457) |
Net income | 0 | (351) |
Amount Reclassified from AOCI | Gains and Losses on Cash Flow Hedges | Interest rate contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax (expense) benefit | (106) | (95) |
Interest income (expense) | 431 | 385 |
Net income | 325 | 290 |
Amount Reclassified from AOCI | Defined Benefit Pension Plans | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax (expense) benefit | 7 | 5 |
Salaries and employee benefits | (27) | (20) |
Net income | $ (20) | $ (15) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining shares available for issuance (in shares) | 3,200 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted during period (in shares) | 121 | |
Share-based compensation awards, vesting period | 36 months | |
Unrecognized compensation expense | $ 5,400,000 | |
Expected weighted-average period for cost recognition | 2 years 2 months 12 days | |
Share-based compensation expense | $ 700,000 | $ 600,000 |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted during period (in shares) | 210 | |
Share-based compensation awards, vesting period | 36 months | |
Unrecognized compensation expense | $ 5,900,000 | |
Expected weighted-average period for cost recognition | 2 years 2 months 12 days | |
Share-based compensation expense | $ 1,400,000 | $ 800,000 |
Stock Options | Old National Bancorp | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incremental expense associated with conversion of stock appreciation rights | $ 0 | |
Stock Appreciation Rights (SARs) | Old National Bancorp | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards outstanding (in shares) | 50 |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Differences in Taxes from Continuing Operations Computed at Statutory Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Statutory rate | 21.00% | |
Provision at statutory rate | $ 5,372 | $ 14,570 |
Tax-exempt interest | (2,632) | (2,531) |
Section 291/265 interest disallowance | 73 | 111 |
Company-owned life insurance income | (647) | (669) |
Tax-exempt income | (3,206) | (3,089) |
State income taxes | (8) | 1,999 |
Interim period effective rate adjustment | 3,267 | 688 |
Tax credit investments - federal | (1,902) | (420) |
Other, net | (584) | (644) |
Income tax expense | $ 2,939 | $ 13,104 |
Effective tax rate | 11.50% | 18.90% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | ||
Expected decrease in unrecognized tax benefits | $ 0 | |
Bad debt reserves, created for tax purposes | 52,800,000 | |
Unrecognized deferred income tax liability | 13,000,000 | |
Valuation allowance recorded | 0 | $ 0 |
AMT credit carryforwards | 1,300,000 | 1,300,000 |
Federal | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards | 60,100,000 | 78,500,000 |
Federal tax credit carryforwards | 3,200,000 | |
State | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards | 150,300,000 | $ 148,400,000 |
AnchorBank WI | ||
Income Taxes [Line Items] | ||
Bad debt reserves, created for tax purposes | 50,900,000 | |
Lafayette Savings Bank | ||
Income Taxes [Line Items] | ||
Bad debt reserves, created for tax purposes | $ 1,900,000 |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Net Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Assets | ||
Allowance for loan losses, net of recapture | $ 28,603 | $ 14,179 |
Benefit plan accruals | 13,268 | 19,673 |
Alternative minimum tax credit | 1,272 | 1,272 |
Net operating loss carryforwards | 21,575 | 25,336 |
Federal tax credits | 3,238 | 0 |
Deferred gain on securities | 3,339 | 3,754 |
Acquired loans | 15,341 | 16,784 |
Operating lease liabilities | 25,591 | 26,503 |
Tax credit investments and other partnerships | 2,808 | 1,765 |
Other real estate owned | 143 | 141 |
Other, net | 790 | 591 |
Total deferred tax assets | 115,968 | 109,998 |
Deferred Tax Liabilities | ||
Purchase accounting | (18,187) | (17,564) |
Loan servicing rights | (5,989) | (6,289) |
Premises and equipment | (8,139) | (12,167) |
Prepaid expenses | (973) | (973) |
Operating lease right-of-use assets | (23,285) | (25,448) |
Unrealized gains on available-for-sale investment securities | (38,162) | (15,751) |
Unrealized gains on hedges | (1,889) | (78) |
Other, net | (1,768) | (2,023) |
Total deferred tax liabilities | (98,392) | (80,293) |
Net deferred tax assets | $ 17,576 | $ 29,705 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Notional amounts | $ 905,500,000 | $ 665,500,000 | |
Percentage of periodic changes in fair value qualifies for hedge accounting treatment | 100.00% | ||
Reclassified interest income (expense) | $ 143,771,000 | $ 147,048,000 | |
Amount Reclassified from AOCI | Interest Income | |||
Derivative [Line Items] | |||
Reclassified interest income (expense) | 6,700,000 | ||
Amount Reclassified from AOCI | Interest Expense | |||
Derivative [Line Items] | |||
Reclassified interest income (expense) | 900,000 | ||
Fixed Interest Swap | |||
Derivative [Line Items] | |||
Notional amounts | 380,500,000 | 130,500,000 | |
Variable Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional amounts | 125,000,000 | 25,000,000 | |
Variable Interest Rate Collars and Floors | |||
Derivative [Line Items] | |||
Notional amounts | 400,000,000 | ||
Variable Interest Rate Collar | |||
Derivative [Line Items] | |||
Notional amounts | 510,000,000 | ||
Interest Rate Lock Commitments | |||
Derivative [Line Items] | |||
Notional amounts | 371,600,000 | 65,700,000 | |
Forward Commitments | |||
Derivative [Line Items] | |||
Notional amounts | 388,800,000 | 101,600,000 | |
Customer Derivative Instrument | |||
Derivative [Line Items] | |||
Notional amounts | 1,380,000,000 | 1,298,000,000 | |
Offsetting Counter Party Derivative Instrument | |||
Derivative [Line Items] | |||
Notional amounts | 1,380,000,000 | 1,298,000,000 | |
Foreign Currency Forward Contract | Foreign currency contracts | |||
Derivative [Line Items] | |||
Notional amounts | $ 5,300,000 | $ 8,200,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Fair Value of Derivative Financial Instruments (Detail) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Total derivative assets | $ 149,873,000 | $ 51,301,000 |
Total derivative liabilities | 35,219,000 | 12,393,000 |
Fair values of counterparty interest rate swaps | 0 | |
Interest rate contracts net adjustment | 88,900,000 | 31,600,000 |
Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Total derivative assets | 21,630,000 | 7,157,000 |
Total derivative liabilities | 1,443,000 | 1,046,000 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Total derivative assets | 21,630,000 | 7,157,000 |
Total derivative liabilities | 1,443,000 | 1,046,000 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Total derivative assets | 128,243,000 | 44,144,000 |
Total derivative liabilities | 33,776,000 | 11,347,000 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Total derivative assets | 114,839,000 | 42,224,000 |
Total derivative liabilities | 26,630,000 | 10,883,000 |
Derivatives not designated as hedging instruments | Mortgage contracts | ||
Derivative [Line Items] | ||
Total derivative assets | 13,081,000 | 1,702,000 |
Total derivative liabilities | 6,913,000 | 354,000 |
Derivatives not designated as hedging instruments | Foreign currency contracts | ||
Derivative [Line Items] | ||
Total derivative assets | 323,000 | 218,000 |
Total derivative liabilities | $ 233,000 | $ 110,000 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Derivatives Designated as Hedges (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amounts | $ 905,500,000 | $ 665,500,000 |
Fixed Interest Swap | Derivatives designated as hedging instruments | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amounts | $ 380,500,000 | $ 130,500,000 |
Weighted average pay rates | 0.33% | 1.82% |
Weighted average receive rates | 1.33% | 2.20% |
Weighted average maturity (in years) | 2 years 10 months 24 days | 2 years 9 months 18 days |
Fair value of swaps | $ 10,797,000 | $ 1,555,000 |
Variable Interest Rate Swap | Derivatives designated as hedging instruments | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amounts | $ 125,000,000 | $ 25,000,000 |
Weighted average maturity (in years) | 1 year 9 months 18 days | 2 years 1 month 6 days |
Weighted average pay rates | 1.11% | 3.52% |
Weighted average receive rates | 1.46% | 1.93% |
Unrealized gains (losses) | $ (1,443,000) | $ (954,000) |
Variable Interest Rate Collar | Derivatives designated as hedging instruments | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amounts | $ 300,000,000 | $ 300,000,000 |
Weighted average maturity (in years) | 1 year 7 months 6 days | 1 year 10 months 24 days |
Unrealized gains (losses) | $ 9,214,000 | $ 3,691,000 |
Weighted average cap rates | 3.21% | 3.21% |
Weighted average floor rates | 2.21% | 2.21% |
Weighted average rates | 1.25% | 1.70% |
Interest Rate Floor | Derivatives designated as hedging instruments | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amounts | $ 100,000,000 | $ 210,000,000 |
Weighted average maturity (in years) | 3 years | 2 years 1 month 6 days |
Unrealized gains (losses) | $ 1,619,000 | $ 1,820,000 |
Weighted average floor rates | 0.75% | 2.00% |
Weighted average rates | 0.99% | 1.70% |
Weighted average sold floor rate | 1.00% |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on the Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income on Derivative | $ 7,803 | $ (392) |
Derivatives not designated as hedging instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative | 4,335 | 988 |
Interest rate contracts | Interest income/(expense) | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income on Derivative | 7,803 | (392) |
Gain (Loss) Reclassified from AOCI into Income | 431 | 385 |
Interest rate contracts | Interest income/(expense) | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative | 9,241 | 6,552 |
Interest rate contracts | Other income/(expense) | Derivatives not designated as hedging instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative | (466) | (37) |
Mortgage contracts | Mortgage banking revenue | Derivatives not designated as hedging instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative | 4,820 | 1,022 |
Foreign currency contracts | Other income/(expense) | Derivatives not designated as hedging instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative | (19) | 3 |
Fixed-rate debt | Interest income/(expense) | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Related Hedged Items | $ (9,228) | $ (6,548) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2020USD ($)shares | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | |
Loss Contingencies [Line Items] | |||
Loan commitments | $ 2,898,000,000 | $ 2,779,000,000 | |
Standby letters of credit | 82,400,000 | 87,800,000 | |
Fixed rate loan commitment | 2,621,000,000 | ||
Floating rate loan commitment | $ 277,000,000 | ||
Loan commitments floating rate, minimum | 0.00% | ||
Loan commitments floating rate, maximum | 13.00% | ||
Allowance for unfunded loan commitments | $ 9,000,000 | 2,700,000 | |
Increase in allowance for credit losses on unfunded loan | 8,950,000 | $ 2,656,000 | 2,656,000 |
Extended credit | 8,700,000 | 8,700,000 | |
Credit extensions with collateral | $ 7,700,000 | 7,700,000 | |
Impact of ASC 326 Adoption | |||
Loss Contingencies [Line Items] | |||
Increase in allowance for credit losses on unfunded loan | $ 4,549,000 | $ 4,549,000 | |
Class B Restricted Shares | Visa | |||
Loss Contingencies [Line Items] | |||
Restricted stock conversion ratio | 1.6228 | ||
Investment owned, balance, shares | shares | 65,466 | ||
Investment owned, at cost | $ 0 |
Financial Guarantees - Addition
Financial Guarantees - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Financial Guarantees [Line Items] | ||
Term of standby letters of credit, years | 1 year | |
Notional amount of standby letters of credit | $ 82,400,000 | $ 87,800,000 |
Carrying value of letters of credit | 500,000 | 600,000 |
Notional amounts | 905,500,000 | $ 665,500,000 |
Interest Rate Swap | ||
Financial Guarantees [Line Items] | ||
Notional amounts | $ 50,100,000 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity securities | $ 6,870 | $ 6,842 |
Total investment securities - available-for-sale | 5,360,025 | 5,385,091 |
Derivative assets | 149,873 | 51,301 |
Derivative liabilities | 35,219 | 12,393 |
U.S. Treasury | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 11,733 | 17,682 |
U.S. government-sponsored entities and agencies | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 519,171 | 592,984 |
Mortgage-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 3,210,000 | 3,183,861 |
States and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 1,302,395 | 1,275,643 |
Pooled trust preferred securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 7,422 | 8,222 |
Other securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 309,304 | 306,699 |
Fair Value on Recurring Basis | Carrying Value | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity securities | 6,870 | 6,842 |
Residential loans held for sale | 54,209 | 46,898 |
Derivative assets | 149,873 | 51,301 |
Derivative liabilities | 35,219 | 12,393 |
Fair Value on Recurring Basis | Carrying Value | U.S. Treasury | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 11,733 | 17,682 |
Fair Value on Recurring Basis | Carrying Value | U.S. government-sponsored entities and agencies | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 519,171 | 592,984 |
Fair Value on Recurring Basis | Carrying Value | Mortgage-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 3,210,000 | 3,183,861 |
Fair Value on Recurring Basis | Carrying Value | States and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 1,302,395 | 1,275,643 |
Fair Value on Recurring Basis | Carrying Value | Pooled trust preferred securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 7,422 | 8,222 |
Fair Value on Recurring Basis | Carrying Value | Other securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 309,304 | 306,699 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity securities | 6,870 | 6,842 |
Residential loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity securities | 0 | 0 |
Residential loans held for sale | 54,209 | 46,898 |
Derivative assets | 149,873 | 51,301 |
Derivative liabilities | 35,219 | 12,393 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity securities | 0 | 0 |
Residential loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | U.S. Treasury | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 11,733 | 17,682 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | U.S. Treasury | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | U.S. Treasury | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | U.S. government-sponsored entities and agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | U.S. government-sponsored entities and agencies | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 519,171 | 592,984 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | U.S. government-sponsored entities and agencies | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Mortgage-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Mortgage-backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 3,210,000 | 3,183,861 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Mortgage-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | States and political subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | States and political subdivisions | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 1,302,395 | 1,275,603 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | States and political subdivisions | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 0 | 40 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Pooled trust preferred securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Pooled trust preferred securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Pooled trust preferred securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 7,422 | 8,222 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Other securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 31,670 | 31,169 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Other securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | 277,634 | 275,530 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Other securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities - available-for-sale | $ 0 | $ 0 |
Fair Value - Reconciliation of
Fair Value - Reconciliation of All Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
States and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Transfers out of Level 3 | $ (4,033) | |
Significant Unobservable Inputs (Level 3) | Pooled trust preferred securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 8,222 | 8,495 |
Accretion of discount | 4 | 4 |
Sales/payments received | (17) | (15) |
Decrease in fair value of securities | (787) | (361) |
Balance at end of period | 7,422 | 8,123 |
Significant Unobservable Inputs (Level 3) | States and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | 40 | 4,108 |
Accretion of discount | 0 | |
Sales/payments received | (40) | (35) |
Decrease in fair value of securities | 0 | |
Balance at end of period | $ 0 | $ 40 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Provision for credit losses | $ 16,950 | $ 1,043 | ||
Net carrying amount other real estate owned and other repossessed property | 200 | $ 43 | ||
Other real estate owned property write-downs | 11 | |||
Valuation allowance for loan servicing rights with impairments | 1,443 | 17 | 31 | $ 15 |
Impairments of loan servicing rights | $ 1,412 | 2 | ||
Past due period of mortgage loans held for sale, days | 90 days | |||
Interest income for residential loans held for sale | $ 400 | 200 | ||
States and political subdivisions | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers out of Level 3 | 4,033 | |||
Impaired Commercial and Commercial Real Estate Loans | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Principal amount of impaired commercial and commercial real estate loans | 49,500 | 30,900 | ||
Valuation allowance | 10,600 | $ 8,900 | ||
Provision for credit losses | $ 6,800 | $ 1,200 |
Fair Value - Quantitative Infor
Fair Value - Quantitative Information about Significant Unobservable Inputs Used in Fair Value Measurements (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 5,360,025 | $ 5,385,091 |
Percentage of adjusted specific issuer evaluation defaults | 100.00% | |
Percentage of adjusted specific issuer evaluation recoveries | 100.00% | |
Pooled trust preferred securities | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of adjusted specific issuer evaluation defaults | 0.00% | |
Percentage of adjusted specific issuer evaluation recoveries | 0.00% | |
Pooled trust preferred securities | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of adjusted specific issuer evaluation defaults | 50.00% | |
Percentage of adjusted specific issuer evaluation recoveries | 25.00% | |
Significant Unobservable Inputs (Level 3) | Pooled trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 7,422 | $ 8,222 |
Significant Unobservable Inputs (Level 3) | Pooled trust preferred securities | Constant Prepayment Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Pooled trust preferred securities | Minimum | Additional Asset Defaults | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0.061 | 0.062 |
Significant Unobservable Inputs (Level 3) | Pooled trust preferred securities | Minimum | Expected Asset Recoveries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Pooled trust preferred securities | Maximum | Additional Asset Defaults | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0.091 | 0.080 |
Significant Unobservable Inputs (Level 3) | Pooled trust preferred securities | Maximum | Expected Asset Recoveries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0.186 | 0.191 |
Significant Unobservable Inputs (Level 3) | Pooled trust preferred securities | Weighted Average | Additional Asset Defaults | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0.071 | 0.068 |
Significant Unobservable Inputs (Level 3) | Pooled trust preferred securities | Weighted Average | Expected Asset Recoveries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0.058 | 0 |
Significant Unobservable Inputs (Level 3) | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 40 | |
Significant Unobservable Inputs (Level 3) | Collateral Dependent Impaired Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 11,374 | 10,361 |
Significant Unobservable Inputs (Level 3) | Collateral Dependent Impaired Loans | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 27,570 | $ 11,610 |
Significant Unobservable Inputs (Level 3) | Collateral Dependent Impaired Loans | Discount for Type of Property, Age of Appraisal, and Current Status | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0 | 0.45 |
Significant Unobservable Inputs (Level 3) | Collateral Dependent Impaired Loans | Minimum | Discount for Type of Property, Age of Appraisal, and Current Status | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Collateral Dependent Impaired Loans | Maximum | Discount for Type of Property, Age of Appraisal, and Current Status | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0.80 | 0.50 |
Significant Unobservable Inputs (Level 3) | Collateral Dependent Impaired Loans | Weighted Average | Discount for Type of Property, Age of Appraisal, and Current Status | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0.42 | 0.13 |
Significant Unobservable Inputs (Level 3) | Foreclosed Assets | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 214 | $ 21 |
Significant Unobservable Inputs (Level 3) | Foreclosed Assets | Residential real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 22 | |
Significant Unobservable Inputs (Level 3) | Foreclosed Assets | Discount for Type of Property, Age of Appraisal, and Current Status | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0.05 | 0.43 |
Significant Unobservable Inputs (Level 3) | Foreclosed Assets | Discount for Type of Property, Age of Appraisal, and Current Status | Residential real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0.21 |
Fair Value - Assets Measured at
Fair Value - Assets Measured at Fair Value on a Non-Recurring Basis (Detail) - Fair Value on Non-recurring Basis - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Commercial Foreclosed Assets | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 214 | |
Commercial Foreclosed Assets | Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | |
Commercial Foreclosed Assets | Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | |
Commercial Foreclosed Assets | Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 214 | |
Commercial Real Estate Foreclosed Assets | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 21 | |
Commercial Real Estate Foreclosed Assets | Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | |
Commercial Real Estate Foreclosed Assets | Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | |
Commercial Real Estate Foreclosed Assets | Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 21 | |
Residential Foreclosed Assets | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 22 | |
Residential Foreclosed Assets | Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | |
Residential Foreclosed Assets | Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | |
Residential Foreclosed Assets | Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 22 | |
Loan servicing rights | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 23,927 | 4,662 |
Loan servicing rights | Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | 0 |
Loan servicing rights | Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 23,927 | 4,662 |
Loan servicing rights | Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | 0 |
Commercial | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 11,374 | 10,361 |
Commercial | Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | 0 |
Commercial | Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | 0 |
Commercial | Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 11,374 | 10,361 |
Commercial real estate | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 27,570 | 11,610 |
Commercial real estate | Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | 0 |
Commercial real estate | Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 0 | 0 |
Commercial real estate | Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 27,570 | $ 11,610 |
Fair Value - Schedule of Differ
Fair Value - Schedule of Difference between the Aggregate Fair Value and the Aggregate Remaining Principal Balance (Detail) - Residential loans held for sale - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Aggregate Fair Value | $ 54,209 | $ 46,898 |
Difference | 2,952 | 1,529 |
Contractual Principal | $ 51,257 | $ 45,369 |
Fair Value - Changes in Fair Va
Fair Value - Changes in Fair Value for Items Measured at Fair Value Pursuant to Election of the Fair Value (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Interest income (expense) | $ 143,771 | $ 147,048 |
Interest (Expense) | (24,228) | (31,870) |
Residential loans held for sale | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Gains and (Losses) | 1,421 | 90 |
Interest income (expense) | 2 | 5 |
Interest (Expense) | 0 | 0 |
Total Changes in Fair Values Included in Current Period Earnings | $ 1,423 | $ 95 |
Fair Value - Carrying Amounts a
Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Carried at Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, due from banks, money market, and other interest-earning investments | $ 343,177 | $ 276,337 | |
Total loans | 12,384,612 | 12,117,524 | |
Accrued interest receivable | 77,810 | 85,123 | |
Noninterest-bearing demand deposits | 4,058,559 | 4,042,286 | |
Time deposits | 1,541,694 | 1,682,230 | |
Federal funds purchased and interbank borrowings | 560,770 | 350,414 | |
Securities sold under agreements to repurchase | 318,067 | 327,782 | $ 342,480 |
Federal Home Loan Bank advances | 2,130,263 | 1,822,847 | |
Other borrowings | 236,114 | 243,685 | |
Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, due from banks, money market, and other interest-earning investments | 343,177 | 276,337 | |
Accrued interest receivable | 77,810 | 85,123 | |
Noninterest-bearing demand deposits | 4,058,559 | 4,042,286 | |
Checking, NOW, savings, and money market interest-bearing deposits | 8,705,109 | 8,828,881 | |
Time deposits | 1,541,694 | 1,682,230 | |
Federal funds purchased and interbank borrowings | 560,770 | 350,414 | |
Securities sold under agreements to repurchase | 318,067 | 327,782 | |
Federal Home Loan Bank advances | 2,130,263 | 1,822,847 | |
Other borrowings | 236,114 | 243,685 | |
Accrued interest payable | 6,113 | 8,272 | |
Standby letters of credit | 459 | 573 | |
Commitments to extend credit | 0 | 0 | |
Carrying Value | Commercial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans | 3,012,704 | 2,867,711 | |
Carrying Value | Commercial real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans | 5,226,694 | 5,145,204 | |
Carrying Value | Residential real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans | 2,318,214 | 2,331,990 | |
Carrying Value | Consumer | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans | 1,720,620 | 1,718,000 | |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, due from banks, money market, and other interest-earning investments | 343,177 | 276,337 | |
Accrued interest receivable | 41 | 15 | |
Noninterest-bearing demand deposits | 4,058,559 | 4,042,286 | |
Checking, NOW, savings, and money market interest-bearing deposits | 8,705,109 | 8,828,881 | |
Time deposits | 0 | 0 | |
Federal funds purchased and interbank borrowings | 560,770 | 350,414 | |
Securities sold under agreements to repurchase | 318,067 | 327,782 | |
Federal Home Loan Bank advances | 0 | 0 | |
Other borrowings | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Standby letters of credit | 0 | 0 | |
Commitments to extend credit | 0 | 0 | |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans | 0 | 0 | |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans | 0 | 0 | |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans | 0 | 0 | |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans | 0 | 0 | |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, due from banks, money market, and other interest-earning investments | 0 | 0 | |
Accrued interest receivable | 23,744 | 28,185 | |
Noninterest-bearing demand deposits | 0 | 0 | |
Checking, NOW, savings, and money market interest-bearing deposits | 0 | 0 | |
Time deposits | 1,563,286 | 1,692,569 | |
Federal funds purchased and interbank borrowings | 0 | 0 | |
Securities sold under agreements to repurchase | 0 | 0 | |
Federal Home Loan Bank advances | 2,279,323 | 1,875,089 | |
Other borrowings | 242,995 | 254,519 | |
Accrued interest payable | 6,113 | 8,272 | |
Standby letters of credit | 0 | 0 | |
Commitments to extend credit | 0 | 0 | |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Commercial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans | 0 | 0 | |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Commercial real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans | 0 | 0 | |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Residential real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans | 0 | 0 | |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Consumer | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans | 0 | 0 | |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, due from banks, money market, and other interest-earning investments | 0 | 0 | |
Accrued interest receivable | 54,025 | 56,923 | |
Noninterest-bearing demand deposits | 0 | 0 | |
Checking, NOW, savings, and money market interest-bearing deposits | 0 | 0 | |
Time deposits | 0 | 0 | |
Federal funds purchased and interbank borrowings | 0 | 0 | |
Securities sold under agreements to repurchase | 0 | 0 | |
Federal Home Loan Bank advances | 0 | 0 | |
Other borrowings | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Standby letters of credit | 459 | 573 | |
Commitments to extend credit | 15,647 | 4,302 | |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Commercial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans | 2,984,123 | 2,831,298 | |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Commercial real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans | 5,184,989 | 5,130,848 | |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Residential real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans | 2,334,673 | 2,357,341 | |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Consumer | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans | $ 1,718,474 | $ 1,676,253 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Topic 606 Revenue Items (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Noninterest income within scope of Topic 606 | $ 31,007 | $ 31,493 |
Wealth management fees | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income within scope of Topic 606 | 8,884 | 8,535 |
Service charges on deposit accounts | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income within scope of Topic 606 | 10,077 | 10,826 |
Debit card and ATM fees | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income within scope of Topic 606 | 4,998 | 5,503 |
Investment product fees | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income within scope of Topic 606 | 5,874 | 5,271 |
Merchant processing fees | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income within scope of Topic 606 | 804 | 707 |
Gain (loss) on other real estate owned | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income within scope of Topic 606 | (56) | 40 |
Safe deposit box fees | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income within scope of Topic 606 | 310 | 411 |
Insurance premiums and commissions | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income within scope of Topic 606 | $ 116 | $ 200 |