Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 25, 2016 | |
Document And Entity Information [Abstract] | ||
Trading Symbol | ASB | |
Entity Registrant Name | ASSOCIATED BANC-CORP | |
Entity Central Index Key | 7,789 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 150,469,386 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 356,047 | $ 374,921 |
Interest-bearing deposits in other financial institutions | 240,010 | 79,764 |
Federal funds sold and securities purchased under agreements to resell | 14,250 | 19,000 |
Investment securities held to maturity, at amortized cost | 1,253,494 | 1,168,230 |
Investment securities available for sale, at fair value | 4,846,088 | 4,967,414 |
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | 140,215 | 147,240 |
Loans held for sale | 230,795 | 124,915 |
Loans | 19,844,005 | 18,714,343 |
Allowance for loan losses | (269,540) | (274,264) |
Loans, net | 19,574,465 | 18,440,079 |
Premises and equipment, net | 329,726 | 267,606 |
Goodwill | 971,951 | 968,844 |
Mortgage servicing rights, net | 58,414 | 61,341 |
Other intangible assets, net | 15,902 | 16,458 |
Trading assets | 60,780 | 32,192 |
Other assets | 1,060,627 | 1,043,831 |
Total assets | 29,152,764 | 27,711,835 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Noninterest-bearing demand deposits | 5,337,677 | 5,562,466 |
Interest-bearing deposits | 16,410,035 | 15,445,199 |
Total deposits | 21,747,712 | 21,007,665 |
Federal funds purchased and securities sold under agreements to repurchase | 698,772 | 431,438 |
Other short-term funding | 541,321 | 402,978 |
Long-term funding | 2,761,635 | 2,676,164 |
Trading liabilities | 62,301 | 33,430 |
Accrued expenses and other liabilities | 243,908 | 222,914 |
Total liabilities | 26,055,649 | 24,774,589 |
Stockholders’ equity | ||
Preferred equity | 159,929 | 121,379 |
Common stock | 1,630 | 1,642 |
Surplus | 1,459,161 | 1,458,522 |
Retained earnings | 1,662,778 | 1,593,239 |
Accumulated other comprehensive loss | (1,254) | (32,616) |
Treasury stock, at cost | (185,129) | (204,920) |
Total common equity | 2,937,186 | 2,815,867 |
Total stockholders’ equity | 3,097,115 | 2,937,246 |
Total liabilities and stockholders’ equity | $ 29,152,764 | $ 27,711,835 |
Preferred shares issued (in shares) | 165,000 | 125,114 |
Preferred shares authorized (par value $1.00 per share) (in shares) | 750,000 | 750,000 |
Common shares issued (in shares) | 163,030,209 | 164,200,068 |
Common shares authorized (par value $0.01 per share) (in shares) | 250,000,000 | 250,000,000 |
Treasury shares of common stock (in shares) | 11,787,605 | 12,960,636 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 167,350 | $ 155,663 | $ 490,065 | $ 460,025 |
Interest and dividends on investment securities: | ||||
Taxable | 22,948 | 24,937 | 72,734 | 73,897 |
Tax exempt | 8,141 | 7,917 | 23,865 | 23,369 |
Other interest | 1,064 | 1,489 | 3,449 | 4,952 |
Total interest income | 199,503 | 190,006 | 590,113 | 562,243 |
INTEREST EXPENSE | ||||
Interest on deposits | 13,118 | 8,521 | 36,562 | 24,281 |
Interest on Federal funds purchased and securities sold under agreements to repurchase | 326 | 248 | 1,000 | 714 |
Interest on other short-term funding | 296 | 83 | 1,656 | 279 |
Interest on long-term funding | 7,229 | 10,645 | 23,657 | 32,159 |
Total interest expense | 20,969 | 19,497 | 62,875 | 57,433 |
NET INTEREST INCOME | 178,534 | 170,509 | 527,238 | 504,810 |
Provision for credit losses | 21,000 | 8,000 | 55,000 | 17,500 |
Net interest income after provision for credit losses | 157,534 | 162,509 | 472,238 | 487,310 |
NONINTEREST INCOME | ||||
Trust service fees | 11,700 | 12,273 | 34,656 | 36,875 |
Service charges on deposit accounts | 17,445 | 17,385 | 50,162 | 48,894 |
Card-based and other nondeposit fees | 12,777 | 12,618 | 37,485 | 38,631 |
Insurance commissions | 19,431 | 17,561 | 62,818 | 57,366 |
Brokerage and annuity commissions | 4,155 | 3,809 | 12,047 | 11,684 |
Mortgage banking, net | 18,291 | 6,643 | 26,562 | 23,992 |
Capital market fees, net | 7,012 | 2,170 | 14,343 | 7,329 |
Bank owned life insurance income | 3,290 | 2,448 | 11,033 | 7,704 |
Asset gains (losses), net | (1,034) | 244 | (853) | 2,931 |
Investment securities gains, net | (13) | 2,796 | 6,201 | 4,038 |
Other | 2,180 | 2,118 | 6,140 | 6,916 |
Total noninterest income | 95,234 | 80,065 | 260,594 | 246,360 |
NONINTEREST EXPENSE | ||||
Personnel expense | 103,819 | 101,134 | 307,346 | 304,272 |
Occupancy | 15,362 | 14,187 | 42,379 | 46,178 |
Equipment | 5,319 | 6,003 | 16,161 | 17,514 |
Technology | 14,173 | 14,748 | 42,887 | 46,660 |
Business development and advertising | 5,251 | 5,964 | 20,053 | 18,120 |
Other intangible amortization | 525 | 885 | 1,568 | 2,574 |
Loan expense | 3,535 | 3,305 | 10,198 | 9,982 |
Legal and professional fees | 4,804 | 4,207 | 14,685 | 13,089 |
Foreclosure / OREO expense | 960 | 645 | 4,167 | 3,071 |
FDIC expense | 9,000 | 6,000 | 25,500 | 18,500 |
Other | 12,566 | 14,507 | 38,701 | 42,394 |
Total noninterest expense | 175,314 | 171,585 | 523,645 | 522,354 |
Income before income taxes | 77,454 | 70,989 | 209,187 | 211,316 |
Income tax expense | 23,638 | 21,551 | 63,746 | 65,806 |
Net income | 53,816 | 49,438 | 145,441 | 145,510 |
Preferred stock dividends | 2,188 | 2,184 | 6,555 | 4,957 |
Net income available to common equity | $ 51,628 | $ 47,254 | $ 138,886 | $ 140,553 |
Earnings per common share: | ||||
Basic (in usd per share) | $ 0.34 | $ 0.31 | $ 0.92 | $ 0.93 |
Diluted (in usd per share) | $ 0.34 | $ 0.31 | $ 0.92 | $ 0.92 |
Average common shares outstanding: | ||||
Basic (in shares) | 148,708 | 148,614 | 148,607 | 149,524 |
Diluted (in shares) | 149,973 | 149,799 | 149,645 | 150,704 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred shares, par value | $ 1 | $ 1 |
Common shares, par value | $ 0.01 | $ 0.01 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 53,816 | $ 49,438 | $ 145,441 | $ 145,510 |
Investment securities available for sale: | ||||
Net unrealized gains (losses) | (22,894) | 22,907 | 59,849 | 35,101 |
Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities | (1,441) | 0 | (4,465) | 0 |
Reclassification adjustment for net (gains) losses realized in net income | 13 | (2,796) | (6,201) | (4,038) |
Income tax (expense) benefit | 9,280 | (7,725) | (18,768) | (11,907) |
Other comprehensive income (loss) on investment securities available for sale | (15,042) | 12,386 | 30,415 | 19,156 |
Defined benefit pension and postretirement obligations: | ||||
Amortization of prior service cost | (80) | 12 | (55) | 37 |
Amortization of actuarial loss | 621 | 627 | 1,586 | 1,692 |
Income tax expense | (206) | (243) | (584) | (659) |
Other comprehensive income on pension and postretirement obligations | 335 | 396 | 947 | 1,070 |
Total other comprehensive income (loss) | (14,707) | 12,782 | 31,362 | 20,226 |
Comprehensive income | $ 39,109 | $ 62,220 | $ 176,803 | $ 165,736 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Preferred Equity | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance at Dec. 31, 2014 | $ 2,800,251 | $ 59,727 | $ 1,665 | $ 1,484,933 | $ 1,497,818 | $ (4,850) | $ (239,042) |
Comprehensive income: | |||||||
Net income | 145,510 | 0 | 0 | 0 | 145,510 | 0 | 0 |
Other comprehensive income | 20,226 | 0 | 0 | 0 | 0 | 20,226 | 0 |
Comprehensive income | 165,736 | ||||||
Common stock issued: | |||||||
Stock-based compensation plans, net | 15,373 | 0 | 0 | 2,880 | (21,786) | 0 | 34,279 |
Acquisition of Ahmann & Martin Co. | 43,530 | 0 | 26 | 43,504 | 0 | 0 | 0 |
Purchase of common stock returned to authorized but unissued | (93,000) | 0 | (49) | (92,951) | 0 | 0 | 0 |
Purchase of treasury stock | (5,070) | 0 | 0 | 0 | 0 | 0 | (5,070) |
Cash dividends: | |||||||
Common stock dividends ($0.30 per share in 2015 and $0.33 per share in 2016) | (45,599) | 0 | 0 | 0 | (45,599) | 0 | 0 |
Preferred stock dividends | (4,957) | 0 | 0 | 0 | (4,957) | 0 | 0 |
Issuance of preferred stock | 62,966 | 62,966 | 0 | 0 | 0 | 0 | 0 |
Purchase of preferred stock | (1,335) | (1,209) | 0 | 0 | (126) | 0 | 0 |
Stockholders' Equity, Other | (766) | (105) | 0 | 0 | (661) | 0 | 0 |
Stock-based compensation expense, net | 14,575 | 0 | 0 | 14,575 | 0 | 0 | 0 |
Tax benefit of stock-based compensation | 2,093 | 0 | 0 | 2,093 | 0 | 0 | 0 |
Ending balance at Sep. 30, 2015 | 2,953,797 | 121,379 | 1,642 | 1,455,034 | 1,570,199 | 15,376 | (209,833) |
Beginning balance at Dec. 31, 2015 | 2,937,246 | 121,379 | 1,642 | 1,458,522 | 1,593,239 | (32,616) | (204,920) |
Comprehensive income: | |||||||
Net income | 145,441 | 0 | 0 | 0 | 145,441 | 0 | 0 |
Other comprehensive income | 31,362 | 0 | 0 | 0 | 0 | 31,362 | 0 |
Comprehensive income | 176,803 | ||||||
Common stock issued: | |||||||
Stock-based compensation plans, net | 7,749 | 0 | 0 | 1,785 | (18,070) | 0 | 24,034 |
Purchase of common stock returned to authorized but unissued | (20,007) | 0 | (12) | (19,995) | 0 | 0 | 0 |
Purchase of treasury stock | (4,243) | 0 | 0 | 0 | 0 | 0 | (4,243) |
Cash dividends: | |||||||
Common stock dividends ($0.30 per share in 2015 and $0.33 per share in 2016) | (49,642) | 0 | 0 | 0 | (49,642) | 0 | 0 |
Preferred stock dividends | (6,555) | 0 | 0 | 0 | (6,555) | 0 | 0 |
Issuance of preferred stock | 97,066 | 97,066 | 0 | 0 | 0 | 0 | 0 |
Redemption of preferred stock | (58,903) | (57,338) | 0 | 0 | (1,565) | 0 | 0 |
Purchase of preferred stock | (1,248) | (1,178) | 0 | 0 | (70) | 0 | 0 |
Stock-based compensation expense, net | 18,047 | 0 | 0 | 18,047 | 0 | 0 | 0 |
Tax benefit of stock-based compensation | 802 | 0 | 0 | 802 | 0 | 0 | 0 |
Ending balance at Sep. 30, 2016 | $ 3,097,115 | $ 159,929 | $ 1,630 | $ 1,459,161 | $ 1,662,778 | $ (1,254) | $ (185,129) |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Common Stock | ||
Cash dividends: | ||
Common stock, per share | $ 0.33 | $ 0.30 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net income | $ 53,816 | $ 49,438 | $ 145,441 | $ 145,510 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Provision for credit losses | 21,000 | 8,000 | 55,000 | 17,500 | |
Depreciation and amortization | 34,121 | 35,788 | |||
Addition to (recovery of) valuation allowance on mortgage servicing rights, net | 2,486 | (306) | |||
Amortization of mortgage servicing rights | 9,142 | 8,902 | |||
Amortization of other intangible assets | 525 | 885 | 1,568 | 2,574 | |
Amortization and accretion on earning assets, funding, and other, net | 34,077 | 29,039 | |||
Tax benefit of stock based compensation | 802 | 2,093 | |||
Gain on sales of investment securities, net | (6,201) | (4,038) | |||
(Gain) loss on sales of assets and impairment write-downs, net | 1,034 | (244) | 853 | (2,931) | |
Gain on mortgage banking activities, net | (21,741) | (15,504) | |||
Mortgage loans originated and acquired for sale | (983,930) | (911,133) | |||
Proceeds from sales of mortgage loans held for sale | 1,147,278 | 941,575 | |||
(Increase) decrease in interest receivable | (5,809) | (3,404) | |||
Increase (decrease) in interest payable | (5,994) | (2,642) | |||
Net change in other assets and other liabilities | 576 | (19,018) | |||
Net cash provided by operating activities | 407,669 | 224,005 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Net increase in loans | (1,461,884) | (935,208) | |||
Purchases of: | |||||
Available for sale securities | (849,466) | (2,075,062) | |||
Held to maturity securities | (151,556) | (207,139) | |||
Federal Home Loan Bank and Federal Reserve Bank stocks | (72,975) | (14,279) | |||
Premises, equipment, and software, net of disposals | (90,691) | (36,778) | |||
Other assets | (4,628) | (9,903) | |||
Proceeds from: | |||||
Sales of available for sale securities | 359,591 | 1,066,957 | |||
Sales of Federal Home Loan Bank stock | 80,000 | 42,514 | |||
Prepayments, calls, and maturities of available for sale investment securities | 651,403 | 869,635 | |||
Prepayments, calls, and maturities of held to maturity investment securities | 55,579 | 7,190 | |||
Sales, prepayments, calls, and maturities of other assets | 19,351 | 17,793 | |||
Net cash (paid) received in acquisition | (685) | 1,132 | |||
Net cash used in investing activities | (1,465,961) | (1,273,148) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Net increase in deposits | 740,047 | 1,794,891 | |||
Net increase (decrease) in short-term funding | 405,677 | (45,953) | |||
Repayment of long-term funding | (1,180,027) | (1,500,026) | |||
Proceeds from issuance of long-term funding | 1,265,000 | 250,000 | |||
Proceeds from issuance of common stock for stock-based compensation plans | 7,749 | 15,373 | |||
Proceeds from issuance of preferred stock | 97,066 | 62,966 | |||
Redemption of preferred stock | (58,903) | 0 | |||
Purchase of preferred stock | (1,248) | (1,335) | |||
Purchase of common stock returned to authorized but unissued | (20,007) | (93,000) | |||
Purchase of treasury stock | (4,243) | (5,070) | |||
Cash dividends on common stock | (49,642) | (45,599) | |||
Cash dividends on preferred stock | (6,555) | (4,957) | |||
Net cash provided by financing activities | 1,194,914 | 427,290 | |||
Total other comprehensive income (loss) | 14,707 | (12,782) | (31,362) | (20,226) | |
Net increase (decrease) in cash and cash equivalents | 136,622 | (621,853) | |||
Cash and cash equivalents at beginning of period | 473,685 | 1,032,067 | $ 1,032,067 | ||
Cash and cash equivalents at end of period | 610,307 | 410,214 | 610,307 | 410,214 | $ 473,685 |
Supplemental disclosures of cash flow information: | |||||
Cash paid for interest | 68,371 | 59,751 | |||
Cash paid for income and franchise taxes | 53,126 | 58,975 | |||
Loans and bank premises transferred to other real estate owned | 8,834 | 5,782 | |||
Capitalized mortgage servicing rights | 8,701 | 9,853 | |||
Loans transferred into held for sale from portfolio, net | 256,188 | 0 | |||
Unsettled trades to sell securities | 0 | 139,286 | 0 | 139,286 | |
Fair value of assets acquired, including cash and cash equivalents | 522 | 4,590 | 522 | 4,590 | |
Fair value ascribed to goodwill and intangible assets | 4,119 | 51,791 | 4,119 | 51,791 | |
Fair value of liabilities assumed | $ 1,423 | $ 12,851 | 1,423 | 12,851 | |
Common stock issued in acquisition | $ 0 | $ 43,530 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position, results of operations and comprehensive income, changes in stockholders’ equity, and cash flows of Associated Banc-Corp (individually referred to herein as the “Parent Company,” and together with all of its subsidiaries and affiliates, collectively referred to herein as the “Corporation”) for the periods presented, and all such adjustments are of a normal recurring nature. The consolidated financial statements include the accounts of all subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. Estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses, goodwill impairment assessment, mortgage servicing rights valuation, and income taxes. Management has evaluated subsequent events for potential recognition or disclosure. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On February 17, 2015, the Corporation acquired Ahmann & Martin Co., a risk and employee benefits consulting firm based in Minnesota. The firm was merged into Associated Financial Group, LLC ("AFG"), the Corporation's insurance brokerage subsidiary. The Corporation's acquisition of Ahmann & Martin Co. enhanced the Corporation's ability to offer clients unique, comprehensive solutions to meet their insurance and financial risk management needs. The transaction was valued at approximately $48 million with the opportunity to increase the consideration by $8 million should certain contingencies be met over a defined period. The transaction was accounted for using the acquisition method of accounting and as such, assets acquired, liabilities assumed and consideration exchanged were recorded at their estimated fair value on the acquisition date. Goodwill from the acquisition represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is not deductible for tax purposes. As a result of the acquisition, the Corporation recorded goodwill of approximately $40 million and other intangible assets of approximately $12 million . Goodwill was assigned to the Corporation's Community, Consumer, and Business segment. See Note 8 for additional information on goodwill and other intangible assets. During the first quarter of 2016, the Corporation completed two small insurance acquisitions to complement its existing insurance and benefits related products and services provided by AFG. The Corporation recorded goodwill of $3 million and other intangibles of $1 million related to these insurance acquisitions. During the second quarter of 2016, Associated Banc-Corp announced that it has begun rebranding AFG. The rebranding follows the February 2015 acquisition of Ahmann & Martin Co. and two small insurance acquisitions during the first quarter of 2016. On September 12, 2016, Associated Banc-Corp announced the completion of state licensure filings, enabling AFG to officially rebrand its employee benefits, insurance and human resource consulting services business unit from AFG to Associated Benefits and Risk Consulting ("ABRC"). |
New Accounting Pronouncements A
New Accounting Pronouncements Adopted | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements Adopted | New Accounting Pronouncements Adopted In September 2015, the FASB issued an amendment to simplify the accounting for measurement adjustments to prior business combinations. The amendment requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer must record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendment also requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This amendment was effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The Corporation adopted the accounting standard during the first quarter of 2016, as required, and with no material impact on its results of operations, financial position, or liquidity. In May 2015, the FASB issued an amendment to eliminate the requirement to categorize investments measured using the net asset value per share ("NAV") practical expedient in the fair value hierarchy table. Entities are required to disclose the fair value of investments measured using the NAV practical expedient so that financial statement users can reconcile amounts reported in the fair value hierarchy table to amounts reported on the balance sheet. This amendment required retrospective application and was effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Corporation adopted the accounting standard during the first quarter of 2016, as required, with no material impact on its results of operations, financial position, or liquidity. In April 2015, the FASB issued an amendment to provide guidance to customers about whether a cloud computing arrangement included a software license. If the cloud computing arrangement includes a software license, then the customer should account for the software license element consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This amendment was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. The Corporation adopted the accounting standard on a prospective basis during the first quarter of 2016, as required, and with no material impact on its results of operations, financial position, or liquidity. In April 2015, the FASB issued an amendment to simplify the presentation of debt issuance costs. This amendment requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB expanded this amendment to include SEC staff views related to debt issuance costs associated with line-of-credit arrangements. The SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. This amendment required retrospective application and was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Corporation adopted the accounting standard during the first quarter of 2016. All prior periods have been restated to reflect this change in presentation, resulting in a $3 million reduction to other assets and a corresponding $3 million reduction to long-term funding on the balance sheet compared to the amounts originally reported at December 31, 2015. In February 2015, the FASB issued an amendment to modify existing consolidation guidance for reporting companies that are required to evaluate whether they should consolidate legal entities. The new standard will place more emphasis on risk of loss when determining a controlling financial interest. Frequency in the application of related-party guidance for determining a controlling financial interest will be reduced. Also, consolidation conclusions for public and private companies among several industries that make use of limited partnerships or VIEs changed. This amendment was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Corporation adopted the accounting standard during the first quarter of 2016, as required, and with no material impact on its results of operations, financial position, or liquidity. In January 2015, the FASB issued an amendment to eliminate from U.S. GAAP the concept of extraordinary items. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The amended guidance prohibits separate disclosure of extraordinary items in the income statement. This amendment was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Corporation adopted the accounting standard during the first quarter of 2016, as required, with no material impact. In June 2014, the FASB issued an amendment to the stock compensation accounting guidance to clarify that a performance target that affects vesting of a share-based payment and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. This amendment was effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2015. The Corporation adopted the accounting standard on a prospective basis during the first quarter of 2016, as required, with no material impact on its results of operations, financial position, or liquidity. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Earnings per common share are calculated utilizing the two-class method. Basic earnings per common share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per common share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding adjusted for the dilutive effect of common stock awards (outstanding stock options, unvested restricted stock awards, and outstanding common stock warrants). Presented below are the calculations for basic and diluted earnings per common share. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands, except per share data) Net income $ 53,816 $ 49,438 $ 145,441 $ 145,510 Preferred stock dividends (2,188 ) (2,184 ) (6,555 ) (4,957 ) Net income available to common equity $ 51,628 $ 47,254 $ 138,886 $ 140,553 Common shareholder dividends $ (16,431 ) $ (14,927 ) $ (49,077 ) $ (45,149 ) Unvested share-based payment awards (177 ) (164 ) (565 ) (450 ) Undistributed earnings $ 35,020 $ 32,163 $ 89,244 $ 94,954 Undistributed earnings allocated to common shareholders $ 34,645 $ 31,813 $ 88,294 $ 93,961 Undistributed earnings allocated to unvested share-based payment awards 375 350 950 993 Undistributed earnings $ 35,020 $ 32,163 $ 89,244 $ 94,954 Basic Distributed earnings to common shareholders $ 16,431 $ 14,927 $ 49,077 $ 45,149 Undistributed earnings allocated to common shareholders 34,645 31,813 88,294 93,961 Total common shareholders earnings, basic $ 51,076 $ 46,740 $ 137,371 $ 139,110 Diluted Distributed earnings to common shareholders $ 16,431 $ 14,927 $ 49,077 $ 45,149 Undistributed earnings allocated to common shareholders 34,645 31,813 88,294 93,961 Total common shareholders earnings, diluted $ 51,076 $ 46,740 $ 137,371 $ 139,110 Weighted average common shares outstanding 148,708 148,614 148,607 149,524 Effect of dilutive common stock awards 1,265 1,185 1,038 1,180 Diluted weighted average common shares outstanding 149,973 149,799 149,645 150,704 Basic earnings per common share $ 0.34 $ 0.31 $ 0.92 $ 0.93 Diluted earnings per common share $ 0.34 $ 0.31 $ 0.92 $ 0.92 Options to purchase approximately 1 million shares were outstanding for both the three and nine months ended September 30, 2016 and September 30, 2015, respectively, but excluded from the calculation of diluted earnings per common share as the effect would have been anti-dilutive. Warrants to purchase approximately 4 million shares were outstanding for both the three and nine months ended September 30, 2016 and 2015 , respectively, but excluded from the calculation of diluted earnings per common shares as the effect would have been anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-Based Compensation Plan: In March 2013, the Board of Directors, with subsequent approval of the Corporation’s shareholders, approved the adoption of the 2013 Incentive Compensation Plan (“2013 Plan”). Under the 2013 Plan, options are generally exercisable up to 10 years from the date of grant, have an exercise price that is equal to the closing price of the Corporation’s stock on the grant date, and vest ratably over four years . The 2013 Plan also provides for the issuance of restricted common stock and restricted common stock units to certain key employees (collectively referred to as “restricted stock awards”). The shares of restricted stock are restricted as to transfer, but are not restricted as to dividend payment or voting rights. Restricted stock units receive dividend equivalents but do not have voting rights. The transfer restrictions lapse over three or four years , depending upon whether the awards are service-based or performance-based. Service-based awards are contingent upon continued employment or meeting the requirements for retirement, and performance-based awards are based on earnings per share performance goals, relative total shareholder return, and continued employment or meeting the requirements for retirement. The 2013 Plan provides that restricted stock awards and stock options will immediately become fully vested upon retirement from the Corporation of those colleagues whose retirement meets the early retirement or normal retirement definitions under the plan (“retirement eligible colleagues”). Accounting for Stock-Based Compensation: The fair value of stock options granted is estimated on the date of grant using a Black-Scholes option pricing model, while the fair value of restricted stock awards is their fair market value on the date of grant. The fair values of stock options and restricted stock awards are amortized as compensation expense on a straight-line basis over the vesting period of the grants. For retirement eligible colleagues, expenses related to stock options and restricted stock awards are fully recognized on the date the colleague meets the definition of normal or early retirement. Compensation expense recognized is included in personnel expense in the consolidated statements of income. Assumptions are used in estimating the fair value of stock options granted. The weighted average expected life of the stock option represents the period of time that stock options are expected to be outstanding and is estimated using historical data of stock option exercises and forfeitures. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected volatility is based on the implied volatility of the Corporation’s stock. The following assumptions were used in estimating the fair value for options granted in the first nine months of 2016 and full year 2015 . 2016 2015 Dividend yield 2.50 % 2.00 % Risk-free interest rate 2.00 % 2.00 % Weighted average expected volatility 25.00 % 20.00 % Weighted average expected life 5.5 years 6.0 years Weighted average per share fair value of options $3.36 $3.08 The Corporation is required to estimate potential forfeitures of stock grants and adjust compensation expense recorded accordingly. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized in the period of change and will also impact the amount of stock-based compensation expense to be recognized in future periods. A summary of the Corporation’s stock option activity for the year ended December 31, 2015 , and the nine months ended September 30, 2016 is presented below. Stock Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (000s) Outstanding at December 31, 2014 7,847,338 $ 18.34 Granted 1,348,504 17.95 Exercised (1,351,646 ) 13.90 Forfeited or expired (1,215,053 ) 29.13 Outstanding at December 31, 2015 6,629,143 $ 17.22 6.24 $ 18,730 Options Exercisable at December 31, 2015 4,190,245 $ 17.25 4.93 $ 14,873 Granted 1,302,298 $ 17.45 Exercised (466,779 ) 14.15 Forfeited or expired (181,552 ) 21.61 Outstanding at September 30, 2016 7,283,110 $ 17.35 6.18 $ 23,503 Options Exercisable at September 30, 2016 4,558,016 $ 17.31 4.76 $ 17,635 Intrinsic value represents the amount by which the fair market value of the underlying stock exceeds the exercise price of the stock option. For the nine months ended September 30, 2016 , the intrinsic value of stock options exercised was approximately $2 million . For the year ended December 31, 2015 the intrinsic value of the stock options exercised was $7 million . The total fair value of stock options that vested were $3 million and $6 million , respectively, for the nine months ended September 30, 2016 and for the year ended December 31, 2015 . The Corporation recognized compensation expense for the vesting of stock options of $3 million and $4 million for the nine months ended September 30, 2016 and year ended December 31, 2015 , respectively. Included in compensation expense for the nine months ended September 30, 2016 was approximately $923,000 of expense for the accelerated vesting of stock options granted to retirement eligible colleagues. At September 30, 2016 , the Corporation had $6 million of unrecognized compensation expense related to stock options that is expected to be recognized over the remaining requisite service periods that extend predominantly through the fourth quarter 2019 . The following table summarizes information about the Corporation’s restricted stock activity for the year ended December 31, 2015 , and for the nine months ended September 30, 2016 . Restricted Stock Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2014 1,982,126 $ 15.79 Granted 1,173,847 18.09 Vested (709,582 ) 15.62 Forfeited (196,363 ) 16.87 Outstanding at December 31, 2015 2,250,028 $ 17.03 Granted 1,073,057 $ 17.48 Vested (831,433 ) 16.61 Forfeited (94,725 ) 17.60 Outstanding at September 30, 2016 2,396,927 $ 17.35 The Corporation amortizes the expense related to restricted stock awards as compensation expense over the vesting period specified in the grant. Performance-based restricted stock awards granted during 2015 and 2016 will vest ratably over a three year period, while service-based restricted stock awards granted during 2015 and 2016 will vest ratably over a four year period. Expense for restricted stock awards of approximately $15 million was recorded for both the nine months ended September 30, 2016 and for the year ended December 31, 2015 . Included in compensation expense for the nine months ended 2016 was approximately $3 million of expense for the accelerated vesting of restricted stock awards granted to retirement eligible colleagues. The Corporation had $24 million of unrecognized compensation costs related to restricted stock awards at September 30, 2016 , that is expected to be recognized over the remaining requisite service periods that extend predominantly through fourth quarter 2019 . The Corporation has the ability to issue shares from treasury or new shares upon the exercise of stock options or the granting of restricted stock awards. The Board of Directors has authorized management to repurchase shares of the Corporation’s common stock each quarter in the market, to be made available for issuance in connection with the Corporation’s employee incentive plans and for other corporate purposes. The repurchase of shares will be based on market and investment opportunities, capital levels, growth prospects, and regulatory constraints. Such repurchases may occur from time to time in open market purchases, block transactions, private transactions, accelerated share repurchase programs, or similar facilities. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Investment securities are generally classified as available for sale or held to maturity at the time of purchase. The majority of the Corporation's investment securities are mortgage-related securities issued by the Government National Mortgage Association (“GNMA”) or government-sponsored enterprises ("GSE") such as the Federal National Mortgage Association (“FNMA”) and the Federal Home Loan Mortgage Corporation (“FHLMC”). The amortized cost and fair values of securities available for sale and held to maturity were as follows. September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value ($ in Thousands) Investment securities available for sale: U. S. Treasury securities $ 1,000 $ 1 $ — $ 1,001 Residential mortgage-related securities: FNMA / FHLMC 882,951 29,941 (32 ) 912,860 GNMA 1,798,096 14,183 (750 ) 1,811,529 Private-label 1,215 — (15 ) 1,200 GNMA commercial mortgage-related securities 2,121,913 4,218 (11,462 ) 2,114,669 Other securities (debt and equity) 4,718 111 — 4,829 Total investment securities available for sale $ 4,809,893 $ 48,454 $ (12,259 ) $ 4,846,088 Investment securities held to maturity: Obligations of state and political subdivisions (municipal securities) $ 1,129,056 $ 31,897 $ (233 ) $ 1,160,720 Residential mortgage-related securities: FNMA / FHLMC 38,297 1,009 (16 ) 39,290 GNMA 86,141 1,703 (24 ) 87,820 Total investment securities held to maturity $ 1,253,494 $ 34,609 $ (273 ) $ 1,287,830 December 31, 2015 Amortized Gross Gross Fair Value ($ in Thousands) Investment securities available for sale: U. S. Treasury securities $ 999 $ — $ (2 ) $ 997 Residential mortgage-related securities: FNMA / FHLMC 1,388,995 33,791 (8,160 ) 1,414,626 GNMA 1,605,956 507 (16,460 ) 1,590,003 Private-label 1,722 1 (14 ) 1,709 GNMA commercial mortgage-related securities 1,982,477 1,334 (28,501 ) 1,955,310 Other securities (debt and equity) 4,718 51 — 4,769 Total investment securities available for sale $ 4,984,867 $ 35,684 $ (53,137 ) $ 4,967,414 Investment securities held to maturity: Municipal securities $ 1,043,767 $ 16,803 $ (339 ) $ 1,060,231 Residential mortgage-related securities: FNMA / FHLMC 41,469 513 (645 ) 41,337 GNMA 82,994 189 (309 ) 82,874 Total investment securities held to maturity $ 1,168,230 $ 17,505 $ (1,293 ) $ 1,184,442 The amortized cost and fair values of investment securities available for sale and held to maturity at September 30, 2016 , are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity ($ in Thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 4,500 $ 4,535 $ 38,786 $ 27,004 Due after one year through five years 1,200 1,200 250,221 260,817 Due after five years through ten years — — 234,104 243,746 Due after ten years — — 605,945 629,153 Total debt securities 5,700 5,735 1,129,056 1,160,720 Residential mortgage-related securities: FNMA / FHLMC 882,951 912,860 38,297 39,290 GNMA 1,798,096 1,811,529 86,141 87,820 Private-label 1,215 1,200 — — GNMA commercial mortgage-related securities 2,121,913 2,114,669 — — Equity securities 18 95 — — Total investment securities $ 4,809,893 $ 4,846,088 $ 1,253,494 $ 1,287,830 Ratio of Fair Value to Amortized Cost 100.8 % 102.7 % During the first nine months of 2016 , the Corporation sold approximately $360 million of FNMA and FHLMC mortgage-related securities and reinvested into GNMA mortgage-related securities, generating a $6 million net gain on sale. This sale of FNMA and FHLMC mortgage-related securities and the subsequent purchase of GNMA mortgage-related securities lowered risk weighted assets and related capital requirements. Nine Months Ended September 30, 2016 2015 ($ in Thousands) Gross gains $ 6,403 $ 8,047 Gross losses (202 ) (4,009 ) Investment securities gains, net $ 6,201 $ 4,038 Proceeds from sales of investment securities $ 359,591 $ 1,206,242 Securities with a carrying value of approximately $2.6 billion and $3.2 billion at September 30, 2016 , and December 31, 2015 , respectively, were pledged to secure certain deposits or for other purposes as required or permitted by law. The following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at September 30, 2016 . Less than 12 months 12 months or more Total Number of Securities Unrealized Losses Fair Value Number of Securities Unrealized Losses Fair Value Unrealized Losses Fair Value ($ in Thousands) Investment securities available for sale: Residential mortgage-related securities: FNMA / FHLMC 3 $ (32 ) $ 14,694 — $ — $ — $ (32 ) $ 14,694 GNMA 8 (750 ) 280,378 — — — (750 ) 280,378 Private-label — — — 1 (15 ) 1,197 (15 ) 1,197 GNMA commercial mortgage-related securities 40 (2,035 ) 828,434 21 (9,427 ) 466,898 (11,462 ) 1,295,332 Total 51 $ (2,817 ) $ 1,123,506 22 $ (9,442 ) $ 468,095 $ (12,259 ) $ 1,591,601 Investment securities held to maturity: Municipal securities 37 $ (224 ) $ 37,317 4 $ (9 ) $ 1,842 $ (233 ) $ 39,159 Residential mortgage-related securities: FNMA / FHLMC 1 (8 ) 1,108 1 (8 ) 6,834 (16 ) 7,942 GNMA 5 (24 ) 6,317 — — — (24 ) 6,317 Total 43 $ (256 ) $ 44,742 5 $ (17 ) $ 8,676 $ (273 ) $ 53,418 For comparative purposes, the following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2015 . Less than 12 months 12 months or more Total Number Unrealized Fair Number Unrealized Fair Unrealized Fair ($ in Thousands) Investment securities available for sale: U.S. Treasury securities 1 $ (2 ) $ 997 — $ — $ — $ (2 ) $ 997 Residential mortgage-related securities: FNMA / FHLMC 17 (1,548 ) 220,852 14 (6,612 ) 338,186 (8,160 ) 559,038 GNMA 46 (16,460 ) 1,434,484 — — — (16,460 ) 1,434,484 Private-label 1 (1 ) 83 3 (13 ) 1,565 (14 ) 1,648 GNMA commercial mortgage-related securities 40 (9,610 ) 1,132,844 21 (18,891 ) 448,218 (28,501 ) 1,581,062 Total 105 $ (27,621 ) $ 2,789,260 38 $ (25,516 ) $ 787,969 $ (53,137 ) $ 3,577,229 Investment securities held to maturity: Municipal securities 53 $ (146 ) $ 23,137 24 $ (193 ) $ 9,254 $ (339 ) $ 32,391 Residential mortgage-related securities: FNMA / FHLMC 10 (177 ) 12,754 3 (468 ) 11,106 (645 ) 23,860 GNMA 21 (201 ) 45,499 3 (108 ) 6,797 (309 ) 52,296 Total 84 $ (524 ) $ 81,390 30 $ (769 ) $ 27,157 $ (1,293 ) $ 108,547 The Corporation reviews the investment securities portfolio on a quarterly basis to monitor its exposure to other-than-temporary impairment. A determination as to whether a security’s decline in fair value is other-than-temporary takes into consideration numerous factors and the relative significance of any single factor can vary by security. Some factors the Corporation may consider in the other-than-temporary impairment analysis include, the length of time and extent to which the security has been in an unrealized loss position, changes in security ratings, financial condition and near-term prospects of the issuer, as well as security and industry specific economic conditions. Based on the Corporation’s evaluation, management does not believe any unrealized loss at September 30, 2016 , represents an other-than-temporary impairment as these unrealized losses are primarily attributable to changes in interest rates and the current market conditions, and not credit deterioration. The unrealized losses reported for municipal securities relate to various state and local political subdivisions and school districts. The Corporation currently does not intend to sell nor does it believe that it will be required to sell the securities contained in the above unrealized losses table before recovery of their amortized cost basis. The reduction in unrealized losses at September 30, 2016 is due to the reduction in overall interest rates. The U.S. Treasury 3-year and 5-year rates dropped by 43 basis points ("bp") and 62 bp, respectively, from December 31, 2015. Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank Stocks: The Corporation is required to maintain Federal Reserve stock and FHLB stock as a member of both the Federal Reserve System and the FHLB, and in amounts as required by these institutions. These equity securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other marketable equity securities and their fair value is equal to amortized cost. At September 30, 2016 , and December 31, 2015 , the Corporation had FHLB stock of $65 million and $74 million , respectively. The Corporation had Federal Reserve Bank stock of $75 million and $73 million at September 30, 2016 and December 31, 2015 , respectively. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Loans | Loans The period end loan composition was as follows. September 30, December 31, ($ in Thousands) Commercial and industrial $ 6,721,557 $ 6,190,683 Commercial real estate — owner occupied 892,678 918,212 Commercial and business lending 7,614,235 7,108,895 Commercial real estate — investor 3,530,370 3,234,266 Real estate construction 1,314,431 1,162,145 Commercial real estate lending 4,844,801 4,396,411 Total commercial 12,459,036 11,505,306 Residential mortgage 6,034,166 5,783,267 Home equity 951,594 1,005,802 Other consumer 399,209 419,968 Total consumer 7,384,969 7,209,037 Total loans $ 19,844,005 $ 18,714,343 The following table presents commercial and consumer loans by credit quality indicator at September 30, 2016 . Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 5,983,940 $ 180,425 $ 351,290 $ 205,902 $ 6,721,557 Commercial real estate - owner occupied 791,951 46,345 47,387 6,995 892,678 Commercial and business lending 6,775,891 226,770 398,677 212,897 7,614,235 Commercial real estate - investor 3,480,535 5,042 36,765 8,028 3,530,370 Real estate construction 1,303,013 8,625 1,929 864 1,314,431 Commercial real estate lending 4,783,548 13,667 38,694 8,892 4,844,801 Total commercial 11,559,439 240,437 437,371 221,789 12,459,036 Residential mortgage 5,973,633 3,832 3,226 53,475 6,034,166 Home equity 936,443 726 78 14,347 951,594 Other consumer 398,481 428 — 300 399,209 Total consumer 7,308,557 4,986 3,304 68,122 7,384,969 Total loans $ 18,867,996 $ 245,423 $ 440,675 $ 289,911 $ 19,844,005 The following table presents commercial and consumer loans by credit quality indicator at December 31, 2015 . Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 5,522,809 $ 341,169 $ 233,130 $ 93,575 $ 6,190,683 Commercial real estate - owner occupied 835,572 38,885 35,706 8,049 918,212 Commercial and business lending 6,358,381 380,054 268,836 101,624 7,108,895 Commercial real estate - investor 3,153,703 45,976 25,944 8,643 3,234,266 Real estate construction 1,157,034 252 3,919 940 1,162,145 Commercial real estate lending 4,310,737 46,228 29,863 9,583 4,396,411 Total commercial 10,669,118 426,282 298,699 111,207 11,505,306 Residential mortgage 5,727,437 1,552 2,796 51,482 5,783,267 Home equity 988,574 1,762 222 15,244 1,005,802 Other consumer 419,087 556 — 325 419,968 Total consumer 7,135,098 3,870 3,018 67,051 7,209,037 Total loans $ 17,804,216 $ 430,152 $ 301,717 $ 178,258 $ 18,714,343 Factors that are important to managing overall credit quality are sound loan underwriting and administration, systematic monitoring of existing loans and commitments, effective loan review on an ongoing basis, early identification of potential problems, and appropriate allowance for loan losses, allowance for unfunded commitments, nonaccrual, and charge off policies. For commercial loans, management has determined the pass credit quality indicator to include credits that exhibit acceptable financial statements, cash flow, and leverage. If any risk exists, it is mitigated by the loan structure, collateral, monitoring, or control. For consumer loans, performing loans include credits that are performing in accordance with the original contractual terms. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Special mention credits have potential weaknesses that deserve management’s attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credit. Potential problem loans are considered inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged. These loans generally have a well-defined weakness, or weaknesses, that may jeopardize liquidation of the debt and are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Lastly, management considers a loan to be impaired when it is probable that the Corporation will be unable to collect all amounts due according to the original contractual terms of the note agreement, including both principal and interest. Management has determined that commercial and consumer loan relationships that have nonaccrual status or have had their terms restructured in a troubled debt restructuring meet this impaired loan definition. Commercial loans classified as special mention, potential problem, and nonaccrual loans are reviewed at a minimum on a quarterly basis, while pass rated credits are reviewed on an annual basis or more frequently if the loan renewal is less than one year or if otherwise warranted. The following table presents loans by past due status at September 30, 2016 . Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (a) Nonaccrual (b) Total ($ in Thousands) Commercial and industrial $ 6,514,451 $ 576 $ 374 $ 254 $ 205,902 $ 6,721,557 Commercial real estate - owner occupied 884,814 754 115 — 6,995 892,678 Commercial and business lending 7,399,265 1,330 489 254 212,897 7,614,235 Commercial real estate - investor 3,521,712 17 613 — 8,028 3,530,370 Real estate construction 1,313,165 337 65 — 864 1,314,431 Commercial real estate lending 4,834,877 354 678 — 8,892 4,844,801 Total commercial 12,234,142 1,684 1,167 254 221,789 12,459,036 Residential mortgage 5,973,994 6,407 290 — 53,475 6,034,166 Home equity 931,774 4,627 846 — 14,347 951,594 Other consumer 395,606 1,499 547 1,257 300 399,209 Total consumer 7,301,374 12,533 1,683 1,257 68,122 7,384,969 Total loans $ 19,535,516 $ 14,217 $ 2,850 $ 1,511 $ 289,911 $ 19,844,005 (a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at September 30, 2016 (the same as the reported balances for the accruing loans noted above). (b) Of the total nonaccrual loans, $215 million or 74% were current with respect to payment at September 30, 2016 . The following table presents loans by past due status at December 31, 2015 . Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (a) Nonaccrual (b) Total ($ in Thousands) Commercial and industrial $ 6,095,848 $ 602 $ 409 $ 249 $ 93,575 $ 6,190,683 Commercial real estate - owner occupied 903,021 7,142 — — 8,049 918,212 Commercial and business lending 6,998,869 7,744 409 249 101,624 7,108,895 Commercial real estate - investor 3,225,332 291 — — 8,643 3,234,266 Real estate construction 1,160,909 270 26 — 940 1,162,145 Commercial real estate lending 4,386,241 561 26 — 9,583 4,396,411 Total commercial 11,385,110 8,305 435 249 111,207 11,505,306 Residential mortgage 5,726,855 4,491 439 — 51,482 5,783,267 Home equity 982,639 6,190 1,729 — 15,244 1,005,802 Other consumer 416,374 1,195 675 1,399 325 419,968 Total consumer 7,125,868 11,876 2,843 1,399 67,051 7,209,037 Total loans $ 18,510,978 $ 20,181 $ 3,278 $ 1,648 $ 178,258 $ 18,714,343 (a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at December 31, 2015 (the same as the reported balances for the accruing loans noted above). (b) Of the total nonaccrual loans, $124 million or 69% were current with respect to payment at December 31, 2015 . The following table presents impaired loans at September 30, 2016 . Recorded Unpaid Related Average Interest ($ in Thousands) Loans with a related allowance Commercial and industrial $ 61,219 $ 65,586 $ 9,293 $ 61,337 $ 1,228 Commercial real estate — owner occupied 8,721 10,641 319 9,133 262 Commercial and business lending 69,940 76,227 9,612 70,470 1,490 Commercial real estate — investor 17,154 17,601 629 21,450 1,405 Real estate construction 1,229 1,626 449 1,301 49 Commercial real estate lending 18,383 19,227 1,078 22,751 1,454 Total commercial 88,323 95,454 10,690 93,221 2,944 Residential mortgage 65,381 70,568 12,087 66,845 1,734 Home equity 21,382 23,277 10,162 22,654 862 Other consumer 1,226 1,288 211 1,268 22 Total consumer 87,989 95,133 22,460 90,767 2,618 Total loans $ 176,312 $ 190,587 $ 33,150 $ 183,988 $ 5,562 Loans with no related allowance Commercial and industrial $ 174,931 $ 221,213 $ — $ 179,696 $ 1,227 Commercial real estate — owner occupied 5,719 6,472 — 5,906 — Commercial and business lending 180,650 227,685 — 185,602 1,227 Commercial real estate — investor 6,226 6,501 — 7,393 — Real estate construction — — — — — Commercial real estate lending 6,226 6,501 — 7,393 — Total commercial 186,876 234,186 — 192,995 1,227 Residential mortgage 6,143 6,289 — 6,206 133 Home equity 650 650 — 651 23 Other consumer — — — — — Total consumer 6,793 6,939 — 6,857 156 Total loans $ 193,669 $ 241,125 $ — $ 199,852 $ 1,383 Total Commercial and industrial $ 236,150 $ 286,799 $ 9,293 $ 241,033 $ 2,455 Commercial real estate — owner occupied 14,440 17,113 319 15,039 262 Commercial and business lending 250,590 303,912 9,612 256,072 2,717 Commercial real estate — investor 23,380 24,102 629 28,843 1,405 Real estate construction 1,229 1,626 449 1,301 49 Commercial real estate lending 24,609 25,728 1,078 30,144 1,454 Total commercial 275,199 329,640 10,690 286,216 4,171 Residential mortgage 71,524 76,857 12,087 73,051 1,867 Home equity 22,032 23,927 10,162 23,305 885 Other consumer 1,226 1,288 211 1,268 22 Total consumer 94,782 102,072 22,460 97,624 2,774 Total impaired loans (a) $ 369,981 $ 431,712 $ 33,150 $ 383,840 $ 6,945 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 78% of the unpaid principal balance at September 30, 2016 . The following table presents impaired loans at December 31, 2015 . Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ in Thousands) Loans with a related allowance Commercial and industrial $ 57,785 $ 59,409 $ 8,162 $ 46,833 $ 855 Commercial real estate — owner occupied 9,705 9,804 448 10,087 412 Commercial and business lending 67,490 69,213 8,610 56,920 1,267 Commercial real estate — investor 27,822 29,444 1,831 28,278 1,914 Real estate construction 1,450 2,154 453 1,667 66 Commercial real estate lending 29,272 31,598 2,284 29,945 1,980 Total commercial 96,762 100,811 10,894 86,865 3,247 Residential mortgage 66,590 71,084 12,462 68,183 2,374 Home equity 21,769 23,989 10,118 22,624 1,147 Other consumer 1,154 1,225 195 1,199 30 Total consumer 89,513 96,298 22,775 92,006 3,551 Total loans $ 186,275 $ 197,109 $ 33,669 $ 178,871 $ 6,798 Loans with no related allowance Commercial and industrial $ 65,083 $ 72,259 $ — $ 79,573 $ 1,657 Commercial real estate — owner occupied 6,221 6,648 — 6,534 15 Commercial and business lending 71,304 78,907 — 86,107 1,672 Commercial real estate — investor 2,736 2,840 — 2,763 90 Real estate construction — — — — — Commercial real estate lending 2,736 2,840 — 2,763 90 Total commercial 74,040 81,747 — 88,870 1,762 Residential mortgage 4,762 5,033 — 4,726 126 Home equity 544 544 — 544 30 Other consumer — — — — — Total consumer 5,306 5,577 — 5,270 156 Total loans $ 79,346 $ 87,324 $ — $ 94,140 $ 1,918 Total Commercial and industrial $ 122,868 $ 131,668 $ 8,162 $ 126,406 $ 2,512 Commercial real estate — owner occupied 15,926 16,452 448 16,621 427 Commercial and business lending 138,794 148,120 8,610 143,027 2,939 Commercial real estate — investor 30,558 32,284 1,831 31,041 2,004 Real estate construction 1,450 2,154 453 1,667 66 Commercial real estate lending 32,008 34,438 2,284 32,708 2,070 Total commercial 170,802 182,558 10,894 175,735 5,009 Residential mortgage 71,352 76,117 12,462 72,909 2,500 Home equity 22,313 24,533 10,118 23,168 1,177 Other consumer 1,154 1,225 195 1,199 30 Total consumer 94,819 101,875 22,775 97,276 3,707 Total impaired loans (a) $ 265,621 $ 284,433 $ 33,669 $ 273,011 $ 8,716 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 82% of the unpaid principal balance at December 31, 2015 . Troubled Debt Restructurings (“Restructured Loans”): Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. See Note 1 “Summary of Significant Accounting Policies," in the Corporation’s 2015 Annual Report on Form 10-K for the Corporation's accounting policy for troubled debt restructurings. The Corporation had a recorded investment of $9 million in loans modified in troubled debt restructurings for the nine months ended September 30, 2016 , of which approximately $4 million was in accrual status and $5 million was in nonaccrual pending a sustained period of repayment. The following table presents nonaccrual and performing restructured loans by loan portfolio. September 30, 2016 December 31, 2015 Performing Restructured Loans Nonaccrual Restructured Loans (a) Performing Restructured Loans Nonaccrual Restructured Loans (a) ($ in Thousands) Commercial and industrial $ 30,248 $ 2,398 $ 29,293 $ 1,714 Commercial real estate — owner occupied 7,445 2,275 7,877 2,703 Commercial real estate — investor 15,352 941 21,915 3,936 Real estate construction 365 154 510 177 Residential mortgage 18,049 22,743 19,870 24,592 Home equity 7,685 3,209 7,069 4,522 Other consumer 926 38 829 40 Total restructured loans $ 80,070 $ 31,758 $ 87,363 $ 37,684 (a) Nonaccrual restructured loans have been included within nonaccrual loans. The following table provides the number of loans modified in a troubled debt restructuring by loan portfolio during the nine months ended September 30, 2016 and 2015 , and the recorded investment and unpaid principal balance as of September 30, 2016 and 2015 . Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Number of Loans Recorded Investment (a) Unpaid Principal Balance (b) Number of Loans Recorded Investment (a) Unpaid Principal Balance (b) ($ in Thousands) Commercial and industrial 10 $ 2,455 $ 2,517 10 $ 2,410 $ 3,033 Commercial real estate — owner occupied 1 117 124 4 2,847 3,007 Commercial real estate — investor — — — 3 2,949 2,998 Real estate construction 1 66 91 1 5 5 Residential mortgage 56 4,676 4,922 77 7,393 7,586 Home equity 47 1,709 1,793 61 2,109 2,220 Other consumer 1 15 16 — — — Total 116 $ 9,038 $ 9,463 156 $ 17,713 $ 18,849 (a) Represents post-modification outstanding recorded investment. (b) Represents pre-modification outstanding recorded investment. Restructured loan modifications may include payment schedule modifications, interest rate concessions, maturity date extensions, modification of note structure (A/B Note), non-reaffirmed Chapter 7 bankruptcies, principal reduction, or some combination of these concessions. During the nine months ended September 30, 2016 , restructured loan modifications of commercial and industrial, commercial real estate, and real estate construction loans primarily included maturity date extensions, interest rate concessions, payment schedule modifications, or a combination of these concessions. Restructured loan modifications of home equity and residential mortgage loans primarily included maturity date extensions, interest rate concessions, non-reaffirmed Chapter 7 bankruptcies, or a combination of these concessions for the nine months ended September 30, 2016 . The following table provides the number of loans modified in a troubled debt restructuring during the previous twelve months which subsequently defaulted during the nine months ended September 30, 2016 and 2015 , as well as the recorded investment in these restructured loans as of September 30, 2016 and 2015 . Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Number of Loans Recorded Investment Number of Loans Recorded Investment ($ in Thousands) Commercial and industrial — $ — 1 $ 153 Commercial real estate — owner occupied — — 1 297 Residential mortgage 36 3,310 45 4,176 Home equity 12 182 21 627 Other consumer 1 15 — — Total 49 $ 3,507 68 $ 5,253 All loans modified in a troubled debt restructuring are evaluated for impairment. The nature and extent of the impairment of restructured loans, including those which have experienced a subsequent payment default, is considered in the determination of an appropriate level of the allowance for loan losses. A summary of the changes in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2016 , was as follows. $ in Thousands Commercial and industrial Commercial real estate - owner occupied Commercial real estate - investor Real estate construction Residential mortgage Home equity Other consumer Total December 31, 2015 $ 129,959 $ 18,680 $ 43,018 $ 25,266 $ 28,261 $ 23,555 $ 5,525 $ 274,264 Charge offs (63,368 ) (265 ) (1,495 ) (380 ) (3,035 ) (3,434 ) (2,853 ) (74,830 ) Recoveries 13,461 48 1,610 111 506 2,730 640 19,106 Net charge offs (49,907 ) (217 ) 115 (269 ) (2,529 ) (704 ) (2,213 ) (55,724 ) Provision for loan losses 57,051 (4,106 ) (2,366 ) (1,873 ) 1,121 (897 ) 2,070 51,000 September 30, 2016 $ 137,103 $ 14,357 $ 40,767 $ 23,124 $ 26,853 $ 21,954 $ 5,382 $ 269,540 Allowance for loan losses: Individually evaluated for impairment $ 8,570 $ — $ 79 $ — $ 976 $ — $ — $ 9,625 Collectively evaluated for impairment 128,533 14,357 40,688 23,124 25,877 21,954 5,382 259,915 Total allowance for loan losses $ 137,103 $ 14,357 $ 40,767 $ 23,124 $ 26,853 $ 21,954 $ 5,382 $ 269,540 Loans: Individually evaluated for impairment $ 203,834 $ 5,719 $ 7,023 $ — $ 9,389 $ 650 $ — $ 226,615 Collectively evaluated for impairment 6,517,723 886,959 3,523,347 1,314,431 6,024,777 950,944 399,209 19,617,390 Total loans $ 6,721,557 $ 892,678 $ 3,530,370 $ 1,314,431 $ 6,034,166 $ 951,594 $ 399,209 $ 19,844,005 The allowance for credit losses is comprised of the allowance for loan losses and the allowance for unfunded commitments. The level of the allowance for loan losses represents management’s estimate of an amount appropriate to provide for probable credit losses in the loan portfolio at the balance sheet date. The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit) and is included in accrued expenses and other liabilities on the consolidated balance sheets. See Note 12 for additional information on the allowance for unfunded commitments. For comparison purposes, a summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2015 , was as follows. $ in Thousands Commercial and industrial Commercial real estate - owner occupied Commercial real estate - investor Real estate construction Residential mortgage Home equity Other consumer Total December 31, 2014 $ 117,635 $ 16,510 $ 46,333 $ 20,999 $ 31,926 $ 26,464 $ 6,435 $ 266,302 Charge offs (27,687 ) (2,645 ) (4,645 ) (750 ) (5,636 ) (7,048 ) (3,869 ) (52,280 ) Recoveries 9,821 921 4,157 2,268 1,077 3,233 765 22,242 Net charge offs (17,866 ) (1,724 ) (488 ) 1,518 (4,559 ) (3,815 ) (3,104 ) (30,038 ) Provision for loan losses 30,190 3,894 (2,827 ) 2,749 894 906 2,194 38,000 December 31, 2015 $ 129,959 $ 18,680 $ 43,018 $ 25,266 $ 28,261 $ 23,555 $ 5,525 $ 274,264 Allowance for loan losses: Individually evaluated for impairment $ 7,522 $ — $ 229 $ — $ 166 $ 46 $ — $ 7,963 Collectively evaluated for impairment 122,437 18,680 42,789 25,266 28,095 23,509 5,525 266,301 Total allowance for loan losses $ 129,959 $ 18,680 $ 43,018 $ 25,266 $ 28,261 $ 23,555 $ 5,525 $ 274,264 Loans: Individually evaluated for impairment $ 91,569 $ 6,221 $ 5,460 $ — $ 6,956 $ 1,281 $ — $ 111,487 Collectively evaluated for impairment 6,099,114 911,991 3,228,806 1,162,145 5,776,311 1,004,521 419,968 18,602,856 Total loans $ 6,190,683 $ 918,212 $ 3,234,266 $ 1,162,145 $ 5,783,267 $ 1,005,802 $ 419,968 $ 18,714,343 A summary of the changes in the allowance for unfunded commitments was as follows. Nine Months Ended September 30, 2016 Year Ended December 31, 2015 ($ in Thousands) Allowance for Unfunded Commitments: Balance at beginning of period $ 24,400 $ 24,900 Provision for unfunded commitments 4,000 (500 ) Balance at end of period $ 28,400 $ 24,400 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Other Intangible Assets Goodwill: Goodwill is not amortized but, instead, is subject to impairment tests on at least an annual basis, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The impairment testing process is conducted by assigning net assets and goodwill to each reporting unit. An initial qualitative evaluation is made to assess the likelihood of impairment and determine whether further quantitative testing to calculate the fair value is necessary. When the qualitative evaluation indicates that impairment is more likely than not, quantitative testing is required whereby the fair value of each reporting unit is calculated and compared to the recorded book value, “step one.” If the calculated fair value of the reporting unit exceeds its carrying value, goodwill is not considered impaired and “step two” is not considered necessary. If the carrying value of a reporting unit exceeds its calculated fair value, the impairment test continues (“step two”) by comparing the carrying value of the reporting unit’s goodwill to the implied fair value of goodwill. The implied fair value is computed by adjusting all assets and liabilities of the reporting unit to current fair value with the offset adjustment to goodwill. The adjusted goodwill balance is the implied fair value of the goodwill. An impairment charge is recognized if the carrying value of goodwill exceeds the implied fair value of goodwill. The Corporation conducted its most recent annual impairment testing in May 2016, utilizing a qualitative assessment. Factors that management considered in this assessment included macroeconomic conditions, industry and market considerations, overall financial performance of the Corporation and each reporting unit (both current and projected), changes in management strategy, and changes in the composition or carrying amount of net assets. In addition, management considered the changes in both the Corporation’s common stock price and in the overall bank common stock index (based on the S&P 400 Regional Bank Sub-Industry Index), as well as the Corporation’s earnings per common share trend over the past year. Based on these assessments, management concluded that the 2016 annual qualitative impairment assessment indicated that it is more likely than not that the estimated fair value exceeded the carrying value (including goodwill) for each reporting unit. Therefore, a step one quantitative analysis was not required. There were no events since the May 2016 impairment testing that have changed the Corporation's impairment assessment conclusion. There were no impairment charges recorded in 2015 or the first nine months of 2016 . At September 30, 2016 , the Corporation had goodwill of $972 million , compared to $969 million at December 31, 2015 . There was an addition to the carrying amount of goodwill of approximately $3 million as a result of two small insurance acquisitions during the first quarter of 2016. See Note 2 for additional information on the Corporation's acquisitions. Other Intangible Assets: The Corporation has other intangible assets that are amortized, consisting of core deposit intangibles, other intangibles (primarily related to customer relationships acquired in connection with the Corporation’s insurance agency acquisitions), and mortgage servicing rights. Core deposit intangibles of approximately $15 million were fully amortized in 2015 and have been removed from both the gross carrying amount and the accumulated amortization for 2016. There was an addition to the gross carrying amount of other intangibles of $1 million for the customer relationships associated with two small insurance acquisitions that occurred during the first quarter of 2016. See Note 2 for additional information on the Corporation's acquisitions. For core deposit intangibles and other intangibles, changes in the gross carrying amount, accumulated amortization, and net book value were as follows. Nine Months Ended September 30, 2016 Year Ended December 31, 2015 ($ in Thousands) Core deposit intangibles: Gross carrying amount $ 4,385 $ 19,545 Accumulated amortization (4,203 ) (19,152 ) Net book value $ 182 $ 393 Amortization during the year $ 211 $ 1,404 Other intangibles: Gross carrying amount $ 32,410 $ 31,398 Accumulated amortization (16,690 ) (15,333 ) Net book value $ 15,720 $ 16,065 Additions during the period $ 1,012 $ 12,115 Amortization during the year $ 1,357 $ 1,690 Mortgage Servicing Rights: The Corporation sells residential mortgage loans in the secondary market and typically retains the right to service the loans sold. Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income, and assessed for impairment at each reporting date. Impairment is assessed based on fair value at each reporting date using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). As mortgage interest rates fall, prepayment speeds are usually faster and the value of the mortgage servicing rights asset generally decreases, requiring additional valuation reserve. Conversely, as mortgage interest rates rise, prepayment speeds are usually slower and the value of the mortgage servicing rights asset generally increases, requiring less valuation reserve. A valuation allowance is established, through a charge to earnings, to the extent the amortized cost of the mortgage servicing rights exceeds the estimated fair value by stratification. If it is later determined that all or a portion of the temporary impairment no longer exists for a stratification, the valuation is reduced through a recovery to earnings. An other-than-temporary impairment (i.e., recoverability is considered remote when considering interest rates and loan pay off activity) is recognized as a write-down of the mortgage servicing rights asset and the related valuation allowance (to the extent a valuation allowance is available) and then against earnings. A direct write-down permanently reduces the carrying value of the mortgage servicing rights asset and valuation allowance, precluding subsequent recoveries. See Note 12 for a discussion of the recourse provisions on sold residential mortgage loans. See Note 13 which further discusses fair value measurement relative to the mortgage servicing rights asset. A summary of changes in the balance of the mortgage servicing rights asset and the mortgage servicing rights valuation allowance was as follows. Nine Months Ended September 30, 2016 Year Ended December 31, 2015 ($ in Thousands) Mortgage servicing rights: Mortgage servicing rights at beginning of period $ 62,150 $ 61,379 Additions 8,701 12,372 Amortization (9,142 ) (11,601 ) Mortgage servicing rights at end of period $ 61,709 $ 62,150 Valuation allowance at beginning of period (809 ) (1,234 ) (Additions) recoveries, net (2,486 ) 425 Valuation allowance at end of period (3,295 ) (809 ) Mortgage servicing rights, net $ 58,414 $ 61,341 Fair value of mortgage servicing rights $ 58,937 $ 70,686 Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) $ 8,010,973 $ 7,915,224 Mortgage servicing rights, net to servicing portfolio 0.73 % 0.77 % Mortgage servicing rights expense (1) $ 11,628 $ 11,176 (1) Includes the amortization of mortgage servicing rights and additions / recoveries to the valuation allowance of mortgage servicing rights, and is a component of mortgage banking, net in the consolidated statements of income. The following table shows the estimated future amortization expense for amortizing intangible assets. The projections of amortization expense are based on existing asset balances, the current interest rate environment, and prepayment speeds as of September 30, 2016 . The actual amortization expense the Corporation recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements, and events or circumstances that indicate the carrying amount of an asset may not be recoverable. Estimated Amortization Expense Core Deposit Intangibles Other Intangibles Mortgage Servicing Rights ($ in Thousands) Three months ending December 31, 2016 $ 70 $ 455 $ 3,263 2017 112 1,786 11,237 2018 — 1,756 8,956 2019 — 1,457 7,223 2020 — 1,340 5,858 2021 — 1,316 4,784 Beyond 2021 — 7,610 20,388 Total Estimated Amortization Expense $ 182 $ 15,720 $ 61,709 |
Short and Long-Term Funding
Short and Long-Term Funding | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Short and Long-Term Funding | Short and Long-Term Funding The components of short-term funding (funding with original contractual maturities of one year or less) and long-term funding (funding with original contractual maturities greater than one year) were as follows. September 30, 2016 December 31, 2015 ($ in Thousands) Short-Term Funding Federal funds purchased $ 221,165 $ 47,870 Securities sold under agreements to repurchase 477,607 383,568 Federal funds purchased and securities sold under agreements to repurchase 698,772 431,438 FHLB advances 450,000 335,000 Commercial paper 91,321 67,978 Other short-term funding 541,321 402,978 Total short-term funding $ 1,240,093 $ 834,416 Long-Term Funding FHLB advances $ 2,265,198 $ 1,750,225 Senior notes, at par 250,000 680,000 Subordinated notes, at par 250,000 250,000 Other long-term funding and capitalized costs (3,563 ) (4,061 ) Total long-term funding 2,761,635 2,676,164 Total short and long-term funding $ 4,001,728 $ 3,510,580 Securities sold under agreements to repurchase ("repurchase agreements") The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Corporation may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Corporation to repurchase the assets. The obligation to repurchase the securities is reflected as a liability on the Corporation’s consolidated balance sheets, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts (i.e., there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities). See Note 11 for additional disclosures on balance sheet offsetting. The Corporation utilizes securities sold under agreements to repurchase to facilitate the needs of its customers. As of September 30, 2016 , the Corporation pledged GSE mortgage-related securities with a fair value of $543 million as collateral for the repurchase agreements. Securities pledged as collateral under repurchase agreements are maintained with the Corporation's safekeeping agents and are monitored on a daily basis due to the market risk of fair value changes in the underlying securities. The Corporation generally pledges excess securities to ensure there is sufficient collateral to satisfy short-term fluctuations in both the repurchase agreement balances and the fair value of the underlying securities. The remaining contractual maturity of the securities sold under agreements to repurchase in the consolidated balance sheets as of September 30, 2016 and December 31, 2015 are presented in the following table. Remaining Contractual Maturity of the Agreements September 30, 2016 Overnight and Continuous Up to 30 days 30-90 days Greater than 90 days Total ($ in Thousands) Repurchase agreements GSE securities $ 477,607 $ — $ — $ — $ 477,607 Total $ 477,607 $ — $ — $ — $ 477,607 December 31, 2015 Repurchase agreements GSE securities $ 383,568 $ — $ — $ — $ 383,568 Total $ 383,568 $ — $ — $ — $ 383,568 Long-term funding: FHLB advances: At September 30, 2016 , the long-term FHLB advances had maturity dates primarily ranging from 2018 through 2019, and had an average interest rate of 0.33% . At December 31, 2015 , the long-term FHLB advances had maturity dates primarily ranging from 2018 through 2019, and had an average interest rate of 0.13% . The majority of FHLB advances are indexed to the FHLB discount note and re-price at varying intervals. The advances offer flexible, low cost, long-term funding that improves the Corporation’s liquidity profile. 2011 Senior Notes: In March 2011, the Corporation issued $300 million of senior notes due March 2016, and callable February 2016, with a 5.125% fixed coupon at a discount. In September 2011, the Corporation “re-opened” the offering and issued an additional $130 million of the same notes at a premium. All notes were redeemed in February 2016 at par. 2014 Senior Notes: In November 2014, the Corporation issued $250 million of senior notes, due November 2019, and callable October 2019. The senior notes have a fixed coupon interest rate of 2.75% and were issued at a discount. 2014 Subordinated Notes: In November 2014, the Corporation issued $250 million of 10 -year subordinated notes, due January 2025, and callable October 2024. The subordinated notes have a fixed coupon interest rate of 4.25% and were issued at a discount. |
Derivative and Hedging Activiti
Derivative and Hedging Activities | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Activities | Derivative and Hedging Activities The Corporation facilitates customer borrowing activity by providing various interest rate risk management, commodity hedging, and foreign currency exchange solutions through its capital markets area. To date, all of the notional amounts of customer transactions have been matched with a mirror hedge with another counterparty. The Corporation has used, and may use again in the future, derivative instruments to hedge the variability in interest payments or protect the value of certain assets and liabilities recorded on its consolidated balance sheets from changes in interest rates. The predominant derivative and hedging activities include interest rate-related instruments (swaps and caps), foreign currency exchange forwards, commodity contracts, written options, purchased options, and certain mortgage banking activities. The contract or notional amount of a derivative is used to determine, along with the other terms of the derivative, the amounts to be exchanged between the counterparties. The Corporation is exposed to credit risk in the event of nonperformance by counterparties to financial instruments. To mitigate the counterparty risk, interest rate and commodity-related instruments generally contain language outlining collateral pledging requirements for each counterparty. Collateral must be posted when the market value exceeds certain mutually agreed upon threshold limits. The Corporation was required to pledge $38 million of investment securities as collateral at September 30, 2016 , and pledged $9 million of investment securities as collateral at December 31, 2015 . Federal regulations require the Corporation to clear all LIBOR interest rate swaps through a clearing house if it can be cleared. As such, the Corporation is required to pledge cash collateral for the margin. At September 30, 2016 , the Corporation posted cash collateral for the margin of $37 million , compared to $22 million at December 31, 2015 . The Corporation’s derivative and hedging instruments are recorded at fair value on the consolidated balance sheets. The fair value of the Corporation’s interest rate-related instruments is determined using discounted cash flow analysis on the expected cash flows of each derivative and also includes a nonperformance / credit risk component (credit valuation adjustment). See Note 13 for additional fair value information and disclosures. Derivatives to Accommodate Customer Needs The Corporation enters into various derivative contracts which are not designated as hedging instruments. Such derivative products are entered into primarily for the benefit of commercial customers seeking to manage their exposures to interest rate, foreign currency, and commodity price risks. These derivative contracts are not designated against specific assets and liabilities on the balance sheet or forecasted transactions and, therefore, do not qualify for hedge accounting treatment. Such derivative contracts are carried at fair value on the consolidated balance sheets with changes in the fair value recorded as a component of capital market fees, net, and typically include interest rate-related instruments (swaps and caps), foreign currency exchange forwards, and commodity contracts. See Note 11 for additional information and disclosures on balance sheet offsetting. Interest rate-related instruments: The Corporation provides interest rate risk management services to commercial customers, primarily interest rate swaps and caps. The Corporation’s market risk from unfavorable movements in interest rates related to these derivative contracts is generally economically hedged by concurrently entering into offsetting derivative contracts. The offsetting derivative contracts have identical notional values, terms and indices. Foreign currency exchange forwards: The Corporation provides foreign currency risk management services to customers, primarily forward contracts. Our customers enter into a foreign currency exchange forward with the Corporation as a means for them to mitigate exchange rate risk. The Corporation mitigates its risk by then entering into an offsetting foreign currency exchange derivative contract. Such foreign currency exchange contracts are carried at fair value on the consolidated balance sheets with changes in fair value recorded as a component of capital market fees, net. Commodity contracts: The Corporation provides commodity risk management services to commercial customers, exclusively oil and gas contracts. Commodity contracts are entered into primarily for the benefit of commercial customers seeking to manage their exposure to fluctuating commodity prices. The Corporation mitigates its risk by then entering into an offsetting commodity derivative contract. Commodity contracts are carried at fair value on the consolidated balance sheets with changes in fair value recorded as a component of capital market fees, net. The table below identifies the balance sheet category and fair values of the Corporation’s derivative instruments to accommodate customer needs which are not designated as hedging instruments. September 30, 2016 December 31, 2015 ($ in Thousands) Notional Amount Fair Value Balance Sheet Category Notional Amount Fair Balance Sheet Interest rate-related instruments — customer and mirror $ 1,953,306 $ 47,504 Trading assets $ 1,665,965 $ 29,391 Trading assets Interest rate-related instruments — customer and mirror 1,953,306 (49,887 ) Trading liabilities 1,665,965 (30,886 ) Trading liabilities Foreign currency exchange forwards 77,732 1,063 Trading assets 72,976 1,532 Trading assets Foreign currency exchange forwards 76,945 (1,014 ) Trading liabilities 65,649 (1,398 ) Trading liabilities Commodity contracts 158,209 12,213 Trading assets 44,380 1,269 Trading assets Commodity contracts 159,048 (11,400 ) Trading liabilities 44,256 (1,146 ) Trading liabilities Mortgage derivatives Interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans are considered derivative instruments, and the fair value of these commitments is recorded on the consolidated balance sheets with the changes in fair value recorded as a component of mortgage banking, net. Written and purchased options (time deposit) Historically, the Corporation had entered into written and purchased option derivative instruments to facilitate an equity linked time deposit product (the “Power CD”), which the Corporation ceased offering in September 2013. The Power CD was a time deposit that provided the purchaser a guaranteed return of principal at maturity plus a potential equity return (a written option), while the Corporation received a known stream of funds based on the equity return (a purchased option). The written and purchased options are mirror derivative instruments which are carried at fair value on the consolidated balance sheets. The table below identifies the balance sheet category and fair values of the Corporation’s derivative instruments which are not designated as hedging instruments. September 30, 2016 December 31, 2015 ($ in Thousands) Notional Amount Fair Balance Sheet Notional Amount Fair Balance Sheet Interest rate lock commitments (mortgage) $ 520,932 $ 3,726 Other assets $ 271,530 $ 958 Other assets Forward commitments (mortgage) 383,000 (1,868 ) Other liabilities 231,798 403 Other assets Purchased options (time deposit) 81,004 2,455 Other assets 104,582 2,715 Other assets Written options (time deposit) 81,004 (2,455 ) Other liabilities 104,582 (2,715 ) Other liabilities The table below identifies the income statement category of the gains and losses recognized in income on the Corporation’s derivative instruments not designated as hedging instruments. Income Statement Category of Gain / (Loss) Recognized in Income For the Nine Months Ended September 30, ($ in Thousands) 2016 2015 Interest rate-related instruments — customer and mirror, net Capital market fees, net $ (888 ) $ 85 Interest rate lock commitments (mortgage) Mortgage banking, net 2,768 637 Forward commitments (mortgage) Mortgage banking, net (2,271 ) 453 Foreign currency exchange forwards Capital market fees, net (85 ) 16 Commodity contracts Capital market fees, net 690 — |
Balance Sheet Offsetting
Balance Sheet Offsetting | 9 Months Ended |
Sep. 30, 2016 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting | Balance Sheet Offsetting Interest Rate-Related Instruments and Commodity Contracts (“Interest and Commodity Agreements”) The Corporation enters into interest rate-related instruments to facilitate the interest rate risk management strategies of commercial customers. The Corporation also enters into commodity contracts to manage commercial customers' exposure to fluctuating commodity prices. The Corporation mitigates these risks by entering into equal and offsetting interest and commodity agreements with highly rated third party financial institutions. The Corporation is party to master netting arrangements with its financial institution counterparties that creates a single net settlement of all legal claims or obligations to pay or receive the net amount of settlement of the individual interest and commodity agreements. Collateral, usually in the form of investment securities and cash, is posted by the counterparty with net liability positions in accordance with contract thresholds. The Corporation does not offset assets and liabilities under these arrangements for financial statement presentation purposes. See Note 10 for additional information on the Corporation’s derivative and hedging activities. Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”) The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. These repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities (i.e., there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities). The right of set-off for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Corporation be in default (e.g., fails to make an interest payment to the counterparty). In addition, the Corporation does not enter into reverse repurchase agreements; therefore, there is no such offsetting to be done with the repurchase agreements. See Note 9 for additional disclosures on repurchase agreements. The following table presents the assets and liabilities subject to an enforceable master netting arrangement. The interest and commodity agreements we have with our commercial customers are not subject to an enforceable master netting arrangement, and therefore, are excluded from this table. Gross amounts recognized Gross amounts not offset in the balance sheet Gross amounts offset in the balance sheet Net amounts presented in the balance sheet Financial instruments Collateral Net amount ($ in Thousands) September 30, 2016 Derivative assets: Interest and commodity agreements $ 5,193 $ — $ 5,193 $ (5,193 ) $ — $ — Derivative liabilities: Interest and commodity agreements $ 59,413 $ — $ 59,413 $ (5,193 ) $ (54,220 ) $ — December 31, 2015 Derivative assets: Interest and commodity instruments $ 1,466 $ — $ 1,466 $ (1,466 ) $ — $ — Derivative liabilities: Interest and commodity instruments $ 30,200 $ — $ 30,200 $ (1,466 ) $ (28,734 ) $ — |
Commitments, Off-Balance Sheet
Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings | Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings The Corporation utilizes a variety of financial instruments in the normal course of business to meet the financial needs of its customers and to manage its own exposure to fluctuations in interest rates. These financial instruments include lending-related and other commitments (see below) as well as derivative instruments (see Note 10 ). The following is a summary of lending-related commitments. September 30, 2016 December 31, 2015 ($ in Thousands) Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale(1)(2) $ 7,849,498 $ 7,402,518 Commercial letters of credit(1) 8,935 9,945 Standby letters of credit(3) 265,381 296,508 1) These off-balance sheet financial instruments are exercisable at the market rate prevailing at the date the underlying transaction will be completed and, thus, are deemed to have no current fair value, or the fair value is based on fees currently charged to enter into similar agreements and is not material at September 30, 2016 or December 31, 2015 . 2) Interest rate lock commitments to originate residential mortgage loans held for sale are considered derivative instruments and are disclosed in Note 10 . 3) The Corporation has established a liability of $3 million at both September 30, 2016 and December 31, 2015 , as an estimate of the fair value of these financial instruments. Lending-related Commitments As a financial services provider, the Corporation routinely enters into commitments to extend credit. Such commitments are subject to the same credit policies and approval process accorded to loans made by the Corporation, with each customer’s creditworthiness evaluated on a case-by-case basis. The commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to these financial instruments is represented by the contractual amount of those instruments. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management’s credit evaluation of the customer. Since a significant portion of commitments to extend credit are subject to specific restrictive loan covenants or may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. An allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded commitments (including unfunded loan commitments and letters of credit). The allowance for unfunded commitments increased to $28 million at September 30, 2016 compared to $24 million at December 31, 2015 , and is included in accrued expenses and other liabilities on the consolidated balance sheets. Lending-related commitments include commitments to extend credit, commitments to originate residential mortgage loans held for sale, commercial letters of credit, and standby letters of credit. Commitments to extend credit are legally binding agreements to lend to customers at predetermined interest rates, as long as there is no violation of any condition established in the contracts. Interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans are considered derivative instruments, and the fair value of these commitments is recorded on the consolidated balance sheets. The Corporation’s derivative and hedging activity is further described in Note 10 . Commercial and standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party, while standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. Other Commitments The Corporation has principal investment commitments to provide capital-based financing to private and public companies through either direct investments in specific companies or through investment funds and partnerships. The timing of future cash requirements to fund such commitments is generally dependent on the investment cycle, whereby privately held companies are funded by private equity investors and ultimately sold, merged, or taken public through an initial offering, which can vary based on overall market conditions, as well as the nature and type of industry in which the companies operate. The Corporation also invests in unconsolidated projects including low-income housing, new market tax credit projects, and historic tax credit projects to promote the revitalization of primarily low-to-moderate-income neighborhoods throughout the local communities of its bank subsidiary. As a limited partner in these unconsolidated projects, the Corporation is allocated tax credits and deductions associated with the underlying projects. The aggregate carrying value of these investments at September 30, 2016 , was $68 million , compared to $52 million at December 31, 2015 , and is included in other assets on the consolidated balance sheets. Related to these investments, the Corporation had remaining commitments to fund of $54 million at September 30, 2016 , and $61 million at December 31, 2015 . Legal Proceedings The Corporation is party to various pending and threatened claims and legal proceedings arising in the normal course of business activities, some of which involve claims for substantial amounts. Although there can be no assurance as to the ultimate outcomes, the Corporation believes it has meritorious defenses to the claims asserted against it in its currently outstanding matters, including the matters described below, and with respect to such legal proceedings, intends to continue to defend itself vigorously. The Corporation will consider settlement of cases when, in management’s judgment, it is in the best interests of both the Corporation and its shareholders. On at least a quarterly basis, the Corporation assesses its liabilities and contingencies in connection with all pending or threatened claims and litigation, utilizing the most recent information available. On a matter by matter basis, an accrual for loss is established for those matters which the Corporation believes it is probable that a loss may be incurred and that the amount of such loss can be reasonably estimated. Once established, each accrual is adjusted as appropriate to reflect any subsequent developments. Accordingly, management’s estimate will change from time to time, and actual losses may be more or less than the current estimate. For matters where a loss is not probable, or the amount of the loss cannot be estimated, no accrual is established. Resolution of legal claims is inherently unpredictable, and in many legal proceedings various factors exacerbate this inherent unpredictability, including where the damages sought are unsubstantiated or indeterminate, it is unclear whether a case brought as a class action will be allowed to proceed on that basis, discovery is not complete, the proceeding is not yet in its final stages, the matters present legal uncertainties, there are significant facts in dispute, there are a large number of parties (including where it is uncertain how liability, if any, will be shared among multiple defendants), or there is a wide range of potential results. A lawsuit, R.J. ZAYED v. Associated Bank, N.A. , was filed in the United States District Court for the District of Minnesota on January 29, 2013. The lawsuit relates to a Ponzi scheme perpetrated by Oxford Global Partners and related entities (“Oxford”) and individuals and was brought by the receiver for Oxford. Oxford was a depository customer of Associated Bank (the "Bank"). The lawsuit claims that the Bank is liable for failing to uncover the Oxford Ponzi scheme, and specifically alleges the Bank aided and abetted (1) the fraudulent scheme; (2) a breach of fiduciary duty; (3) conversion; and (4) false representations and omissions. The lawsuit seeks unspecified consequential and punitive damages. The District Court granted the Bank’s motion to dismiss the complaint on September 30, 2013. On March 2, 2015, the U.S. Court of Appeals for the Eighth Circuit reversed the District Court and remanded the case back to the District Court for further proceedings. It is not possible for management to assess the probability of a material adverse outcome or reasonably estimate the amount of any potential loss at this time. A lawsuit by investors in the same Ponzi scheme, Herman Grad, et al v. Associated Bank, N.A., brought in Brown County, Wisconsin in October 2009 was dismissed by the circuit court, and the dismissal was affirmed by the Wisconsin Court of Appeals in June 2011 in an unpublished opinion. On May 22, 2015, the Bank entered into a Conciliation Agreement ("Conciliation Agreement") with the U.S. Department of Housing and Urban Development ("HUD") which resolved the HUD investigation into the Bank's lending practices during the years 2008-2010. The Bank's commitments under the Conciliation Agreement are spread over a three -year period and include commitments to do the following in minority communities: make mortgage loans of approximately $196 million ; open one branch and four loan production offices; establish special financing programs; make affordable home repair grants; engage in affirmative marketing outreach; provide financial education programs; and make grants to support community reinvestment training and education. The cost of these commitments will be spread over four calendar years and is not expected to have a material impact on the Corporation's financial condition or results of operation. A variety of consumer products, including legacy debt protection and identity protection products provided by third parties, and mortgage and deposit products, and certain fees and charges related to such products, have come under increased regulatory scrutiny. It is possible that regulatory authorities could bring enforcement actions, including civil money penalties, or take other actions against the Corporation and the Bank in regard to these consumer products. The Bank could also determine of its own accord, or be required by regulators, to refund or otherwise make remediation payments to customers in connection with these products. It is not possible at this time for management to assess the probability of a material adverse outcome or reasonably estimate the amount of any potential loss related to such matters. Two complaints were filed against the Bank on January 11, 2016 in the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division in connection with the In re: World Marketing Chicago, LLC, et al Chapter 11 bankruptcy proceeding. In the first complaint, The Official Committee of Unsecured Creditors of World Marketing Chicago, LLC, et al v. Associated Bank, N.A., the plaintiff seeks to avoid guarantees and pledges of collateral given by the debtors to secure a revolving financing commitment of $6 million to the debtors’ parent company from the Bank. The plaintiff alleges a variety of legal theories under federal and state law, including fraudulent conveyance, preferential transfer and conversion, in support of its position. The plaintiff seeks return of approximately $4 million paid to the Bank and the avoidance of the security interest in the collateral securing the remaining indebtedness to the Bank. The Bank intends to vigorously defend this lawsuit. In the second complaint, American Funds Service Company v. Associated Bank, N.A., the plaintiff alleges that approximately $600,000 of funds it had advanced to the World Marketing entities to apply towards future postage fees was swept by the Bank from World Marketing’s bank accounts. Plaintiff seeks the return of such funds from the Bank under several theories, including Sec. 541(d) of the Bankruptcy Code, the creation of a resulting trust, and unjust enrichment. The Bank intends to vigorously defend this lawsuit. It is not possible for management to assess the probability of a material adverse outcome or reasonably estimate the amount of any potential loss at this time with respect to these two lawsuits. Mortgage Repurchase Reserve The Corporation sells residential mortgage loans to investors in the normal course of business. Residential mortgage loans sold to others are predominantly conventional residential first lien mortgages originated under our usual underwriting procedures, and are most often sold on a nonrecourse basis, primarily to the GSEs. The Corporation’s agreements to sell residential mortgage loans in the normal course of business usually require certain representations and warranties on the underlying loans sold, related to credit information, loan documentation, collateral, and insurability. Subsequent to being sold, if a material underwriting deficiency or documentation defect is discovered, the Corporation may be obligated to repurchase the loan or reimburse the GSEs for losses incurred (collectively, “make whole requests”). The make whole requests and any related risk of loss under the representations and warranties are largely driven by borrower performance. As a result of make whole requests, the Corporation has repurchased loans with principal balances of approximately $2 million and $3 million during the nine months ended September 30, 2016 and the year ended December 31, 2015 , respectively. The loss reimbursement and settlement claims paid for the nine months ended September 30, 2016 and the year ended December 31, 2015 , respectively, were negligible. Make whole requests during 2015 and the first nine months of 2016 generally arose from loans sold during the period of January 1, 2012 to September 30, 2016 , which totaled $8.8 billion at the time of sale, and consisted primarily of loans sold to GSEs. As of September 30, 2016 , approximately $6.0 billion of these sold loans remain outstanding. The balance in the mortgage repurchase reserve at the balance sheet date reflects the estimated amount of potential loss the Corporation could incur from repurchasing a loan, as well as loss reimbursements, indemnifications, and other settlement resolutions. The following summarizes the changes in the mortgage repurchase reserve. Nine Months Ended September 30, 2016 Year Ended December 31, 2015 ($ in Thousands) Balance at beginning of period $ 1,197 $ 3,258 Repurchase provision expense 342 428 Adjustments to provision expense — (2,450 ) Charge offs, net (5 ) (39 ) Balance at end of period $ 1,534 $ 1,197 The Corporation may also sell residential mortgage loans with limited recourse (limited in that the recourse period ends prior to the loan’s maturity, usually after certain time and / or loan paydown criteria have been met), whereby repurchase could be required if the loan had defined delinquency issues during the limited recourse periods. At September 30, 2016 , and December 31, 2015 , there were approximately $48 million and $68 million , respectively, of residential mortgage loans sold with such recourse risk. There have been limited instances and immaterial historical losses on repurchases for recourse under the limited recourse criteria. The Corporation has a subordinate position to the FHLB in the credit risk on residential mortgage loans it sold to the FHLB in exchange for a monthly credit enhancement fee. The Corporation has not sold loans to the FHLB with such credit risk retention since February 2005. At September 30, 2016 and December 31, 2015 , there were $104 million and $132 million , respectively, of such residential mortgage loans with credit risk recourse, upon which there have been negligible historical losses to the Corporation. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value represents the estimated price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date under current market conditions (i.e., an exit price concept). Following is a description of the valuation methodologies used for the Corporation’s more significant instruments measured on a recurring basis at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Assets and Liabilities Measured at Fair Value on a Recurring Basis Investment securities available for sale : Where quoted prices are available in an active market, investment securities are classified in Level 1 of the fair value hierarchy. If quoted market prices are not available for the specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows, with consideration given to the nature of the quote and the relationship of recently evidenced market activity to the fair value estimate, and are classified in Level 2 of the fair value hierarchy. Lastly, in certain cases where there is limited activity or less transparency around inputs to the estimated fair value, securities are classified within Level 3 of the fair value hierarchy. To validate the fair value estimates, assumptions, and controls, the Corporation looks to transactions for similar instruments and utilizes independent pricing provided by third party vendors or brokers and relevant market indices. While none of these sources are solely indicative of fair value, they serve as directional indicators for the appropriateness of the Corporation’s fair value estimates. The Corporation has determined that the fair value measures of its investment securities are classified predominantly within Level 1 or 2 of the fair value hierarchy. See Note 6 for additional disclosure regarding the Corporation’s investment securities. Derivative financial instruments (interest rate-related instruments ): The Corporation has used, and may use again in the future, interest rate swaps to manage its interest rate risk. In addition, the Corporation offers interest rate-related instruments (swaps and caps) to service our customers’ needs, for which the Corporation simultaneously enters into offsetting derivative financial instruments (i.e., mirror interest rate-related instruments) with third parties to manage its interest rate risk associated with these financial instruments. The valuation of the Corporation’s derivative financial instruments is determined using discounted cash flow analysis on the expected cash flows of each derivative and, also includes a nonperformance / credit risk component (credit valuation adjustment). See Note 10 for additional disclosure regarding the Corporation’s interest rate-related instruments. The discounted cash flow analysis component in the fair value measurement reflects the contractual terms of the derivative financial instruments, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. More specifically, the fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments), with the variable cash payments (or receipts) based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. Likewise, the fair values of interest rate options (i.e., interest rate caps) are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates fall below (or rise above) the strike rate of the floors (or caps), with the variable interest rates used in the calculation of projected receipts on the floor (or cap) based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The Corporation also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative financial instruments for the effect of nonperformance risk, the Corporation has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. While the Corporation has determined that the majority of the inputs used to value its derivative financial instruments fall within Level 2 of the fair value hierarchy, the credit valuation adjustments utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. The Corporation has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions as of September 30, 2016 , and December 31, 2015 , and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivative financial instruments. Therefore, the Corporation has determined that the fair value measures of its derivative financial instruments in their entirety are classified within Level 2 of the fair value hierarchy. Derivative financial instruments (foreign currency exchange forwards ): The Corporation provides foreign currency exchange services to customers. In addition, the Corporation may enter into a foreign currency exchange forward to mitigate the exchange rate risk attached to the cash flows of a loan or as an offsetting contract to a forward entered into as a service to our customer. The valuation of the Corporation’s foreign currency exchange forwards is determined using quoted prices of foreign currency exchange forwards with similar characteristics, with consideration given to the nature of the quote and the relationship of recently evidenced market activity to the fair value estimate, and are classified in Level 2 of the fair value hierarchy. See Note 10 for additional disclosures regarding the Corporation’s foreign currency exchange forwards. Derivative financial instruments (commodity contracts ): The Corporation enters into commodity contracts to manage commercial customers' exposure to fluctuating commodity prices, for which the Corporation simultaneously enters into offsetting derivative financial instruments (i.e., mirror commodity contracts) with third parties to manage its risk associated with these financial instruments. The valuation of the Corporation’s commodity contracts is determined using quoted prices of the underlying instrument, and are classified in Level 2 of the fair value hierarchy. See Note 10 for additional disclosures regarding the Corporation’s commodity contracts. Derivative financial instruments (mortgage derivatives) : Mortgage derivatives include interest rate lock commitments to originate residential mortgage loans held for sale to individual customers and forward commitments to sell residential mortgage loans to various investors. The Corporation relies on an internal valuation model to estimate the fair value of its interest rate lock commitments to originate residential mortgage loans held for sale, which includes grouping the interest rate lock commitments by interest rate and terms, applying an estimated pull-through rate based on historical experience, and then multiplying by quoted investor prices determined to be reasonably applicable to the loan commitment groups based on interest rate, terms, and rate lock expiration dates of the loan commitment groups. The Corporation also relies on an internal valuation model to estimate the fair value of its forward commitments to sell residential mortgage loans (i.e., an estimate of what the Corporation would receive or pay to terminate the forward delivery contract based on market prices for similar financial instruments), which includes matching specific terms and maturities of the forward commitments against applicable investor pricing available. While there are Level 2 and 3 inputs used in the valuation models, the Corporation has determined that the majority of the inputs significant in the valuation of both of the mortgage derivatives fall within Level 3 of the fair value hierarchy. See Note 10 for additional disclosure regarding the Corporation’s mortgage derivatives. Following is a description of the valuation methodologies used for the Corporation’s more significant instruments measured on a nonrecurring basis at the lower of amortized cost or estimated fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Loans Held for Sale: Loans held for sale, which consist generally of current production of certain fixed-rate, first-lien residential mortgage loans, and certain commercial loans, once a decision has been made to sell such loans, are carried at the lower of cost or estimated fair value. The estimated fair value was based on what secondary markets are currently offering for portfolios with similar characteristics, which the Corporation classifies as a Level 2 nonrecurring fair value measurement. Impaired Loans: The Corporation considers a loan impaired when it is probable that the Corporation will be unable to collect all amounts due according to the original contractual terms of the note agreement, including both principal and interest. Management has determined that commercial and consumer loan relationships that have nonaccrual status or have had their terms restructured in a troubled debt restructuring meet this impaired loan definition. For individually evaluated impaired loans, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the estimated fair value of the underlying collateral for collateral-dependent loans, or the estimated liquidity of the note. See Note 7 for additional information regarding the Corporation’s impaired loans. Mortgage servicing rights : Mortgage servicing rights do not trade in an active, open market with readily observable prices. While sales of mortgage servicing rights do occur, the precise terms and conditions typically are not readily available to allow for a “quoted price for similar assets” comparison. Accordingly, the Corporation utilizes an independent valuation from a third party which uses a discounted cash flow model to estimate the fair value of its mortgage servicing rights. The valuation model incorporates prepayment assumptions to project mortgage servicing rights cash flows based on the current interest rate scenario, which is then discounted to estimate an expected fair value of the mortgage servicing rights. The valuation model considers portfolio characteristics of the underlying mortgages, contractually specified servicing fees, prepayment assumptions, discount rate assumptions, delinquency rates, late charges, other ancillary revenue, costs to service, and other economic factors. The Corporation periodically reviews and assesses the underlying inputs and assumptions used in the model. In addition, the Corporation compares its fair value estimates and assumptions to observable market data for mortgage servicing rights, where available, and to recent market activity and actual portfolio experience. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the fair value hierarchy. The Corporation uses the amortization method (i.e., lower of amortized cost or estimated fair value measured on a nonrecurring basis), not fair value measurement accounting, for its mortgage servicing rights assets. See Note 8 for additional disclosure regarding the Corporation’s mortgage servicing rights. The table below presents the Corporation’s investment securities available for sale and derivative financial instruments measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 , aggregated by the level in the fair value hierarchy within which those measurements fall. Assets and Liabilities Measured at Fair Value on a Recurring Basis Fair Value Hierarchy September 30, 2016 December 31, 2015 ($ in Thousands) Assets: Investment securities available for sale: U.S. Treasury securities Level 1 $ 1,001 $ 997 Residential mortgage-related securities: FNMA / FHLMC Level 2 912,860 1,414,626 GNMA Level 2 1,811,529 1,590,003 Private-label Level 2 1,200 1,709 GNMA commercial mortgage-related securities Level 2 2,114,669 1,955,310 Other securities (debt and equity) Level 1 1,629 1,569 Other securities (debt and equity) Level 2 3,000 3,000 Other securities (debt and equity) Level 3 200 200 Total investment securities available for sale Level 1 2,630 2,566 Total investment securities available for sale Level 2 4,843,258 4,964,648 Total investment securities available for sale Level 3 200 200 Interest rate-related instruments Level 2 47,504 29,391 Foreign currency exchange forwards Level 2 1,063 1,532 Interest rate lock commitments to originate residential mortgage loans held for sale Level 3 3,726 958 Forward commitments to sell residential mortgage loans Level 3 — 403 Commodity contracts Level 2 12,213 1,269 Purchased options (time deposit) Level 2 2,455 2,715 Liabilities: Interest rate-related instruments Level 2 $ 49,887 $ 30,886 Foreign currency exchange forwards Level 2 1,014 1,398 Forward commitments to sell residential mortgage loans Level 3 1,868 — Commodity contracts Level 2 11,400 1,146 Written options (time deposit) Level 2 2,455 2,715 The table below presents a rollforward of the balance sheet amounts for the nine months ended September 30, 2016 and the year ended December 31, 2015 , for financial instruments measured on a recurring basis and classified within Level 3 of the fair value hierarchy. Investment Securities Available for Sale Derivative Financial Instruments ($ in Thousands) Balance December 31, 2014 $ 200 $ (488 ) Total net gains included in income: Mortgage derivative gain — 1,849 Balance December 31, 2015 $ 200 $ 1,361 Total net gains included in income: Mortgage derivative gain — 497 Balance September 30, 2016 $ 200 $ 1,858 For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of September 30, 2016 , the Corporation utilized the following valuation techniques and significant unobservable inputs. Derivative financial instruments (mortgage derivative — interest rate lock commitments to originate residential mortgage loans held for sale) : The significant unobservable input used in the fair value measurement of the Corporation’s mortgage derivative interest rate lock commitments is the closing ratio, which represents the percentage of loans currently in a lock position which management estimates will ultimately close. The closing ratio calculation takes into consideration historical data and loan-level data, particularly the change in the current interest rates from the time of initial rate lock. The closing ratio is periodically reviewed for reasonableness and reported to the Associated Mortgage Risk Management Committee. At September 30, 2016 , the closing ratio was 88% . Impaired loans : For individually evaluated impaired loans, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the estimated fair value of the underlying collateral for collateral-dependent loans, or the estimated liquidity of the note, resulting in an average discount of approximately 20% . Mortgage servicing rights : The discounted cash flow analyses that generate expected market prices utilize the observable characteristics of the mortgage servicing rights portfolio, as well as certain unobservable valuation parameters. The significant unobservable inputs used in the fair value measurement of the Corporation’s mortgage servicing rights are the weighted average constant prepayment rate and weighted average discount rate, which were 15.5% and 9.6% at September 30, 2016 , respectively. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. These parameter assumptions fall within a range that the Corporation, in consultation with an independent third party, believes purchasers of servicing would apply to such portfolios sold into the current secondary servicing market. Discussions are held with members from Treasury and the Community, Consumer, and Business segment to reconcile the fair value estimates and the key assumptions used by the respective parties in arriving at those estimates. The Associated Mortgage Risk Management Committee is responsible for providing control over the valuation methodology and key assumptions. To assess the reasonableness of the fair value measurement, the Corporation also compares the fair value and constant prepayment rate to a value calculated by an independent third party on an annual basis. The table below presents the Corporation’s loans held for sale, impaired loans, and mortgage servicing rights measured at fair value on a nonrecurring basis as of September 30, 2016 and December 31, 2015 , aggregated by the level in the fair value hierarchy within which those measurements fall. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Income Statement Category of Adjustment Recognized in Income ($ in Thousands) Fair Value Hierarchy Fair Value September 30, 2016 Assets: Commercial loans held for sale Level 2 $ 16,912 Provision for credit losses $ (451 ) Mortgage loans held for sale (1) Level 2 214,298 Mortgage banking, net — Impaired loans (2) Level 3 47,554 Provision for credit losses (53,866 ) Mortgage servicing rights Level 3 58,937 Mortgage banking, net (2,486 ) December 31, 2015 Assets: Mortgage loans held for sale Level 2 $ 124,915 Mortgage banking, net $ (155 ) Impaired loans (2) Level 3 41,891 Provision for credit losses (7,796 ) Mortgage servicing rights Level 3 70,686 Mortgage banking, net 425 (1) Loans held for sale are carried at the lower of cost or estimated fair value. At September 30, 2016 , the estimated fair value exceeded the cost and therefore there was no adjustment recognized in the Consolidated Statements of Income. (2) Represents individually evaluated impaired loans, net of the related allowance for loan losses. Certain nonfinancial assets measured at fair value on a nonrecurring basis include other real estate owned (upon initial recognition or subsequent impairment), nonfinancial assets and nonfinancial liabilities measured at fair value in the second step of a goodwill impairment test, and intangible assets and other nonfinancial long-lived assets measured at fair value for impairment assessment. During the first nine months of 2016 and the full year 2015 , certain other real estate owned, upon initial recognition, was re-measured and reported at fair value through a charge off to the allowance for loan losses based upon the estimated fair value of the other real estate owned, less estimated selling costs. The fair value of other real estate owned, upon initial recognition or subsequent impairment, was estimated using appraised values, which the Corporation classifies as a Level 2 nonrecurring fair value measurement. Other real estate owned measured at fair value upon initial recognition totaled approximately $9 million for the first nine months of 2016 and $11 million for the year ended December 31, 2015 , respectively. In addition to other real estate owned measured at fair value upon initial recognition, the Corporation also recorded write-downs to the balance of other real estate owned for subsequent impairment of $1 million and $3 million to foreclosure / OREO expense, net for the nine months ended September 30, 2016 and the year ended December 31, 2015 , respectively. Fair Value of Financial Instruments: The Corporation is required to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions are set forth below for the Corporation’s financial instruments. September 30, 2016 December 31, 2015 Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value ($ in Thousands) Financial assets: Cash and due from banks Level 1 $ 356,047 $ 356,047 $ 374,921 $ 374,921 Interest-bearing deposits in other financial institutions Level 1 240,010 240,010 79,764 79,764 Federal funds sold and securities purchased under agreements to resell Level 1 14,250 14,250 19,000 19,000 Investment securities held to maturity Level 2 1,253,494 1,287,830 1,168,230 1,184,442 Investment securities available for sale Level 1 2,630 2,630 2,566 2,566 Investment securities available for sale Level 2 4,843,258 4,843,258 4,964,648 4,964,648 Investment securities available for sale Level 3 200 200 200 200 FHLB and Federal Reserve Bank stocks Level 2 140,215 140,215 147,240 147,240 Loans held for sale Level 2 230,795 231,210 124,915 124,915 Loans, net Level 3 19,574,465 19,588,911 18,440,079 18,389,832 Bank owned life insurance Level 2 584,088 584,088 583,019 583,019 Derivatives (trading and other assets) Level 2 63,235 63,235 34,907 34,907 Derivatives (trading and other assets) Level 3 3,726 3,726 1,361 1,361 Financial liabilities: Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts Level 3 $ 20,221,611 $ 20,221,611 $ 19,444,863 $ 19,444,863 Brokered CDs and other time deposits Level 2 1,526,101 1,530,993 1,562,802 1,564,464 Short-term funding Level 2 1,240,093 1,240,093 834,416 834,416 Long-term funding Level 2 2,761,635 2,820,062 2,676,164 2,728,112 Standby letters of credit (1) Level 2 2,619 2,619 2,954 2,954 Derivatives (trading and other liabilities) Level 2 64,756 64,756 36,145 36,145 Derivatives (trading and other liabilities) Level 3 1,868 1,868 — — (1) The commitment on standby letters of credit was $265 million and $297 million at September 30, 2016 and December 31, 2015 , respectively. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments. Cash and due from banks, interest-bearing deposits in other financial institutions, and federal funds sold and securities purchased under agreements to resell— For these short-term instruments, the carrying amount is a reasonable estimate of fair value. Investment securities (held to maturity and available for sale)— The fair value of investment securities is based on quoted prices in active markets, or if quoted prices are not available for a specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. FHLB and Federal Reserve Bank stocks— The carrying amount is a reasonable fair value estimate for the Federal Reserve Bank and FHLB stocks given their “restricted” nature (i.e., the stock can only be sold back to the respective institutions (FHLB or Federal Reserve Bank) or another member institution at par). Loans held for sale— The fair value estimation process for the loans held for sale portfolio is segregated by loan type. The estimated fair value for mortgage loans held for sale was based on what secondary markets are currently offering for portfolios with similar characteristics. The estimated fair value for commercial loans held for sale was based on a discounted cash flow analysis. Loans, net— The fair value estimation process for the loan portfolio uses an exit price concept and reflects discounts the Corporation believes are consistent with liquidity discounts in the market place. Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial and industrial, real estate construction, commercial real estate (owner occupied and investor), residential mortgage, home equity, and other consumer. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for similar maturities. The fair value analysis also included other assumptions to estimate fair value, intended to approximate those a market participant would use in an orderly transaction, with adjustments for discount rates, interest rates, liquidity, and credit spreads, as appropriate. Bank owned life insurance— The fair value of bank owned life insurance approximates the carrying amount, because upon liquidation of these investments, the Corporation would receive the cash surrender value which equals the carrying amount. Deposits— The fair value of deposits with no stated maturity such as noninterest-bearing demand, savings, interest-bearing demand, and money market accounts, is equal to the amount payable on demand as of the balance sheet date. The fair value of Brokered CDs and other time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. However, if the estimated fair value of Brokered CDs and other time deposits is less than the carrying value, the carrying value is reported as the fair value. Short-term funding— The carrying amount is a reasonable estimate of fair value for existing short-term funding. Long-term funding— Rates currently available to the Corporation for debt with similar terms and remaining maturities are used to estimate the fair value of existing long-term funding. Standby letters of credit— The fair value of standby letters of credit represents deferred fees arising from the related off-balance sheet financial instruments. These deferred fees approximate the fair value of these instruments and are based on several factors, including the remaining terms of the agreement and the credit standing of the customer. Derivatives (trading and other) - A detailed description of the Corporation's derivative instruments can be found under the "Assets and Liabilities Measured at Fair Value on a Recurring Basis" section of this footnote. Limitations— Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Corporation’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Retirement Plans | Retirement Plans The Corporation has a noncontributory defined benefit retirement plan (the Retirement Account Plan (“RAP”)) covering substantially all full-time employees. The benefits are based primarily on years of service and the employee’s compensation paid. Employees of acquired entities generally participate in the RAP after consummation of the business combinations. Any retirement plans of acquired entities are typically merged into the RAP after completion of the mergers, and credit is usually given to employees for years of service at the acquired institution for vesting and eligibility purposes. The Corporation also provides healthcare access for eligible retired employees in its Postretirement Plan (the “Postretirement Plan”). Retirees who are at least 55 years of age with 5 years of service are eligible to participate in the Postretirement Plan. The Corporation has no plan assets attributable to the Postretirement Plan. The Corporation reserves the right to make changes to the Postretirement Plan at any time. The components of net periodic benefit cost for the RAP and Postretirement Plans for three and nine months ended September 30, 2016 and 2015 were as follows. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 ($ in Thousands) Components of Net Periodic Benefit Cost Pension Plan: Service cost $ 1,636 $ 2,318 $ 5,086 $ 8,443 Interest cost 1,781 1,678 5,341 4,963 Expected return on plan assets (5,085 ) (5,379 ) (15,215 ) (16,079 ) Amortization of prior service cost (80 ) 12 (55 ) 37 Amortization of actuarial loss 621 627 1,586 1,692 Total net periodic pension cost $ (1,127 ) $ (744 ) $ (3,257 ) $ (944 ) Postretirement Plan: Interest cost $ 35 $ 35 $ 107 $ 105 Total net periodic benefit cost $ 35 $ 35 $ 107 $ 105 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Corporation utilizes a risk-based internal profitability measurement system to provide strategic business unit reporting. The profitability measurement system is based on internal management methodologies designed to produce consistent results and reflect the underlying economics of the units. Certain strategic business units have been combined for segment information reporting purposes where the nature of the products and services, the type of customer and the distribution of those products and services are similar. The three reportable segments are Corporate and Commercial Specialty; Community, Consumer, and Business; and Risk Management and Shared Services. The financial information of the Corporation’s segments has been compiled utilizing the accounting policies described in the Corporation’s 2015 Annual Report on Form 10-K, with certain exceptions. The more significant of these exceptions are described herein. The Corporation allocates net interest income using an internal funds transfer pricing ("FTP") methodology that charges users of funds (assets) and credits providers of funds (liabilities, primarily deposits) based on the maturity, prepayment and / or repricing characteristics of the assets and liabilities. The net effect of this allocation is recorded in the Risk Management and Shared Services segment. During 2015, the Corporation adopted enhanced FTP methodology utilizing new, more granular deposit information which incorporated the additional dimension of vintage (based on time from when the deposit account was opened) for determining the funds credit for non-maturity deposits. The new deposit information demonstrated that deposit accounts with the Corporation for a longer period of time had a lower attrition rate, warranting a higher crediting rate (based on a longer-term segment of the yield curve) to reflect the long-term value such deposits provide to the Corporation. A credit provision is allocated to segments based on the expected long-term annual net charge off rates attributable to the credit risk of loans managed by the segment during the period. In contrast, the level of the consolidated provision for credit losses is determined based on an incurred loss model using the methodologies described in the Corporation’s 2015 Annual Report on Form 10-K to assess the overall appropriateness of the allowance for loan losses and the allowance for unfunded commitments. The net effect of the credit provision is recorded in Risk Management and Shared Services. Indirect expenses incurred by certain centralized support areas are allocated to segments based on actual usage (for example, volume measurements) and other criteria. Certain types of administrative expense and bank-wide expense accruals (including amortization of core deposit and other intangible assets associated with acquisitions) are generally not allocated to segments. Income taxes are allocated to segments based on the Corporation’s estimated effective tax rate, with certain segments adjusted for any tax-exempt income or non-deductible expenses. Equity is allocated to the segments based on regulatory capital requirements and in proportion to an assessment of the inherent risks associated with the business of the segment (including interest, credit and operating risk). The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to U.S. generally accepted accounting principles. As a result, reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in previously reported segment financial data. A brief description of each business segment is presented below. A more in-depth discussion of these segments can be found in the Segment Reporting footnote in the Corporation’s 2015 Annual Report on Form 10-K. There have been no changes in the Corporation's segments since December 31, 2015. The Corporate and Commercial Specialty segment serves a wide range of customers including larger businesses, developers, not-for-profits, municipalities, and financial institutions. The Community, Consumer, and Business segment serves individuals, as well as small and mid-sized businesses. The Risk Management and Shared Services segment includes key shared operational functions and also includes residual revenue and expenses, representing the difference between actual amounts incurred and the amounts allocated to operating segments, including interest rate risk residuals (FTP mismatches) and credit risk and provision residuals (long-term credit charge mismatches). Information about the Corporation’s segments is presented below. Segment Income Statement Data ($ in Thousands) Corporate and Commercial Specialty Community, Consumer, and Business Risk Management and Shared Services Consolidated Total Nine Months Ended September 30, 2016 Net interest income $ 242,800 $ 257,848 $ 26,590 $ 527,238 Noninterest income 35,172 207,460 17,962 260,594 Total revenue 277,972 465,308 44,552 787,832 Credit provision* 38,933 18,357 (2,290 ) 55,000 Noninterest expense 109,511 370,714 43,420 523,645 Income before income taxes 129,528 76,237 3,422 209,187 Income tax expense (benefit) 42,623 26,683 (5,560 ) 63,746 Net income $ 86,905 $ 49,554 $ 8,982 $ 145,441 Return on average allocated capital (ROCET1)** 10.9 % 10.5 % 1.4 % 9.7 % Nine Months Ended September 30, 2015 Net interest income $ 230,130 $ 261,951 $ 12,729 $ 504,810 Noninterest income 36,222 199,753 10,385 246,360 Total revenue 266,352 461,704 23,114 751,170 Credit provision* 30,312 19,625 (32,437 ) 17,500 Noninterest expense 106,643 366,121 49,590 522,354 Income before income taxes 129,397 75,958 5,961 211,316 Income tax expense (benefit) 44,384 26,585 (5,163 ) 65,806 Net income $ 85,013 $ 49,373 $ 11,124 $ 145,510 Return on average allocated capital (ROCET1)** 11.8 % 10.3 % 3.9 % 10.3 % Segment Balance Sheet Data ($ in Thousands) Corporate and Commercial Specialty Community, Consumer, and Business Risk Management and Shared Services Consolidated Total Average Balances for YTD September 2016 Average earning assets $ 10,097,995 $ 9,287,158 $ 6,508,356 $ 25,893,509 Average loans 10,088,777 9,285,848 166,447 19,541,072 Average deposits 5,906,695 11,320,106 3,531,614 20,758,415 Average allocated capital (CET1)** $ 1,063,598 $ 631,484 $ 225,813 $ 1,920,895 Average Balances for YTD September 2015 Average earning assets $ 9,373,312 $ 8,719,078 $ 6,326,369 $ 24,418,759 Average loans 9,363,936 8,719,078 71,378 18,154,392 Average deposits 5,730,918 10,786,342 3,145,612 19,662,872 Average allocated capital (CET1)** $ 966,746 $ 640,116 $ 213,750 $ 1,820,612 Segment Income Statement Data ($ in Thousands) Corporate and Commercial Specialty Community, Consumer, and Business Risk Management and Shared Services Consolidated Total Three Months Ended September 30, 2016 Net interest income $ 83,567 $ 87,274 $ 7,693 $ 178,534 Noninterest income 12,623 78,580 4,031 95,234 Total revenue 96,190 165,854 11,724 273,768 Credit provision* 11,080 5,969 3,951 21,000 Noninterest expense 37,968 127,454 9,892 175,314 Income (loss) before income taxes 47,142 32,431 (2,119 ) 77,454 Income tax expense (benefit) 14,907 11,351 (2,620 ) 23,638 Net income $ 32,235 $ 21,080 $ 501 $ 53,816 Return on average allocated capital (ROCET1)** 11.7 % 13.2 % (2.9 )% 10.5 % Three Months Ended September 30, 2015 Net interest income $ 78,283 $ 88,209 $ 4,017 $ 170,509 Noninterest income 11,305 64,879 3,881 80,065 Total revenue 89,588 153,088 7,898 250,574 Credit provision* 10,851 5,963 (8,814 ) 8,000 Noninterest expense 37,293 122,361 11,931 171,585 Income before income taxes 41,444 24,764 4,781 70,989 Income tax expense (benefit) 13,955 8,667 (1,071 ) 21,551 Net income $ 27,489 $ 16,097 $ 5,852 $ 49,438 Return on average allocated capital (ROCET1)** 11.0 % 10.1 % 6.7 % 10.2 % Segment Balance Sheet Data ($ in Thousands) Corporate and Commercial Specialty Community, Consumer, and Business Risk Management and Shared Services Consolidated Total Average Balances for 3Q16 Average earning assets $ 10,441,454 $ 9,414,718 $ 6,577,991 $ 26,434,163 Average loans 10,435,341 9,413,401 204,034 20,052,776 Average deposits 6,227,305 11,526,639 3,650,081 21,404,025 Average allocated capital (CET1)** $ 1,091,624 $ 633,392 $ 227,600 $ 1,952,616 Average Balances for 3Q15 Average earning assets $ 9,475,469 $ 8,917,831 $ 6,441,043 $ 24,834,343 Average loans 9,466,761 8,917,831 68,157 18,452,749 Average deposits 6,044,306 10,969,172 3,280,121 20,293,599 Average allocated capital (CET1)** $ 988,283 $ 632,878 $ 216,275 $ 1,837,436 * The consolidated credit provision is equal to the actual reported provision for credit losses. ** The Federal Reserve establishes capital adequacy requirements for the Corporation. Average allocated capital represents average common equity Tier 1, as defined by the Federal Reserve. For segment reporting purposes, the ROCET1, a non-GAAP financial measure, reflects return on average allocated common equity Tier 1 (“CET1”). The ROCET1 for the Risk Management and Shared Services segment and the Consolidated Total is inclusive of the annualized effect of the preferred stock dividends. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table summarizes the components of accumulated other comprehensive income (loss) at September 30, 2016 and 2015 , changes during the three and nine month periods then ended, and reclassifications out of accumulated other comprehensive income (loss) during the three and nine month periods ended September 30, 2016 and 2015 , respectively. ($ in Thousands) Investments Defined Benefit Accumulated Balance January 1, 2016 $ 459 $ (33,075 ) $ (32,616 ) Other comprehensive income before reclassifications 59,849 — 59,849 Amounts reclassified from accumulated other comprehensive income (loss): Investment securities gain, net (6,201 ) — (6,201 ) Personnel expense — 1,531 1,531 Interest income (Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities) (4,465 ) — (4,465 ) Income tax expense (18,768 ) (584 ) (19,352 ) Net other comprehensive income during period 30,415 947 31,362 Balance September 30, 2016 $ 30,874 $ (32,128 ) $ (1,254 ) Balance January 1, 2015 $ 18,512 $ (23,362 ) $ (4,850 ) Other comprehensive income before reclassifications 35,101 — 35,101 Amounts reclassified from accumulated other comprehensive income (loss): Investment securities gain, net (4,038 ) — (4,038 ) Personnel expense — 1,729 1,729 Income tax expense (11,907 ) (659 ) (12,566 ) Net other comprehensive income during period 19,156 1,070 20,226 Balance September 30, 2015 $ 37,668 $ (22,292 ) $ 15,376 ($ in Thousands) Investments Defined Benefit Accumulated Balance July 1, 2016 $ 45,916 $ (32,463 ) $ 13,453 Other comprehensive loss before reclassifications (22,894 ) — (22,894 ) Amounts reclassified from accumulated other comprehensive income (loss): Investment securities loss, net 13 — 13 Personnel expense — 541 541 Interest income (Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities) (1,441 ) — (1,441 ) Income tax (expense) benefit 9,280 (206 ) 9,074 Net other comprehensive income (loss) during period (15,042 ) 335 (14,707 ) Balance September 30, 2016 $ 30,874 $ (32,128 ) $ (1,254 ) Balance July 1, 2015 $ 25,282 $ (22,688 ) $ 2,594 Other comprehensive income before reclassifications 22,907 — 22,907 Amounts reclassified from accumulated other comprehensive income (loss): Investment securities gain, net (2,796 ) — (2,796 ) Personnel expense — 639 639 Income tax expense (7,725 ) (243 ) (7,968 ) Net other comprehensive income during period 12,386 396 12,782 Balance September 30, 2015 $ 37,668 $ (22,292 ) $ 15,376 |
New Accounting Pronouncements25
New Accounting Pronouncements Adopted (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements Adopted | In September 2015, the FASB issued an amendment to simplify the accounting for measurement adjustments to prior business combinations. The amendment requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer must record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendment also requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This amendment was effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The Corporation adopted the accounting standard during the first quarter of 2016, as required, and with no material impact on its results of operations, financial position, or liquidity. In May 2015, the FASB issued an amendment to eliminate the requirement to categorize investments measured using the net asset value per share ("NAV") practical expedient in the fair value hierarchy table. Entities are required to disclose the fair value of investments measured using the NAV practical expedient so that financial statement users can reconcile amounts reported in the fair value hierarchy table to amounts reported on the balance sheet. This amendment required retrospective application and was effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Corporation adopted the accounting standard during the first quarter of 2016, as required, with no material impact on its results of operations, financial position, or liquidity. In April 2015, the FASB issued an amendment to provide guidance to customers about whether a cloud computing arrangement included a software license. If the cloud computing arrangement includes a software license, then the customer should account for the software license element consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This amendment was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. The Corporation adopted the accounting standard on a prospective basis during the first quarter of 2016, as required, and with no material impact on its results of operations, financial position, or liquidity. In April 2015, the FASB issued an amendment to simplify the presentation of debt issuance costs. This amendment requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB expanded this amendment to include SEC staff views related to debt issuance costs associated with line-of-credit arrangements. The SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. This amendment required retrospective application and was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Corporation adopted the accounting standard during the first quarter of 2016. All prior periods have been restated to reflect this change in presentation, resulting in a $3 million reduction to other assets and a corresponding $3 million reduction to long-term funding on the balance sheet compared to the amounts originally reported at December 31, 2015. In February 2015, the FASB issued an amendment to modify existing consolidation guidance for reporting companies that are required to evaluate whether they should consolidate legal entities. The new standard will place more emphasis on risk of loss when determining a controlling financial interest. Frequency in the application of related-party guidance for determining a controlling financial interest will be reduced. Also, consolidation conclusions for public and private companies among several industries that make use of limited partnerships or VIEs changed. This amendment was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Corporation adopted the accounting standard during the first quarter of 2016, as required, and with no material impact on its results of operations, financial position, or liquidity. In January 2015, the FASB issued an amendment to eliminate from U.S. GAAP the concept of extraordinary items. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The amended guidance prohibits separate disclosure of extraordinary items in the income statement. This amendment was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Corporation adopted the accounting standard during the first quarter of 2016, as required, with no material impact. In June 2014, the FASB issued an amendment to the stock compensation accounting guidance to clarify that a performance target that affects vesting of a share-based payment and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. This amendment was effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2015. The Corporation adopted the accounting standard on a prospective basis during the first quarter of 2016, as required, with no material impact on its results of operations, financial position, or liquidity. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Calculations for basic and diluted earnings per common share | Presented below are the calculations for basic and diluted earnings per common share. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands, except per share data) Net income $ 53,816 $ 49,438 $ 145,441 $ 145,510 Preferred stock dividends (2,188 ) (2,184 ) (6,555 ) (4,957 ) Net income available to common equity $ 51,628 $ 47,254 $ 138,886 $ 140,553 Common shareholder dividends $ (16,431 ) $ (14,927 ) $ (49,077 ) $ (45,149 ) Unvested share-based payment awards (177 ) (164 ) (565 ) (450 ) Undistributed earnings $ 35,020 $ 32,163 $ 89,244 $ 94,954 Undistributed earnings allocated to common shareholders $ 34,645 $ 31,813 $ 88,294 $ 93,961 Undistributed earnings allocated to unvested share-based payment awards 375 350 950 993 Undistributed earnings $ 35,020 $ 32,163 $ 89,244 $ 94,954 Basic Distributed earnings to common shareholders $ 16,431 $ 14,927 $ 49,077 $ 45,149 Undistributed earnings allocated to common shareholders 34,645 31,813 88,294 93,961 Total common shareholders earnings, basic $ 51,076 $ 46,740 $ 137,371 $ 139,110 Diluted Distributed earnings to common shareholders $ 16,431 $ 14,927 $ 49,077 $ 45,149 Undistributed earnings allocated to common shareholders 34,645 31,813 88,294 93,961 Total common shareholders earnings, diluted $ 51,076 $ 46,740 $ 137,371 $ 139,110 Weighted average common shares outstanding 148,708 148,614 148,607 149,524 Effect of dilutive common stock awards 1,265 1,185 1,038 1,180 Diluted weighted average common shares outstanding 149,973 149,799 149,645 150,704 Basic earnings per common share $ 0.34 $ 0.31 $ 0.92 $ 0.93 Diluted earnings per common share $ 0.34 $ 0.31 $ 0.92 $ 0.92 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Fair value assumptions of stock options | The following assumptions were used in estimating the fair value for options granted in the first nine months of 2016 and full year 2015 . 2016 2015 Dividend yield 2.50 % 2.00 % Risk-free interest rate 2.00 % 2.00 % Weighted average expected volatility 25.00 % 20.00 % Weighted average expected life 5.5 years 6.0 years Weighted average per share fair value of options $3.36 $3.08 |
Summary of company's stock option activities | A summary of the Corporation’s stock option activity for the year ended December 31, 2015 , and the nine months ended September 30, 2016 is presented below. Stock Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (000s) Outstanding at December 31, 2014 7,847,338 $ 18.34 Granted 1,348,504 17.95 Exercised (1,351,646 ) 13.90 Forfeited or expired (1,215,053 ) 29.13 Outstanding at December 31, 2015 6,629,143 $ 17.22 6.24 $ 18,730 Options Exercisable at December 31, 2015 4,190,245 $ 17.25 4.93 $ 14,873 Granted 1,302,298 $ 17.45 Exercised (466,779 ) 14.15 Forfeited or expired (181,552 ) 21.61 Outstanding at September 30, 2016 7,283,110 $ 17.35 6.18 $ 23,503 Options Exercisable at September 30, 2016 4,558,016 $ 17.31 4.76 $ 17,635 |
Summary of restricted stock awards activity (excluding salary shares) | The following table summarizes information about the Corporation’s restricted stock activity for the year ended December 31, 2015 , and for the nine months ended September 30, 2016 . Restricted Stock Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2014 1,982,126 $ 15.79 Granted 1,173,847 18.09 Vested (709,582 ) 15.62 Forfeited (196,363 ) 16.87 Outstanding at December 31, 2015 2,250,028 $ 17.03 Granted 1,073,057 $ 17.48 Vested (831,433 ) 16.61 Forfeited (94,725 ) 17.60 Outstanding at September 30, 2016 2,396,927 $ 17.35 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment securities available for sale | The amortized cost and fair values of securities available for sale and held to maturity were as follows. September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value ($ in Thousands) Investment securities available for sale: U. S. Treasury securities $ 1,000 $ 1 $ — $ 1,001 Residential mortgage-related securities: FNMA / FHLMC 882,951 29,941 (32 ) 912,860 GNMA 1,798,096 14,183 (750 ) 1,811,529 Private-label 1,215 — (15 ) 1,200 GNMA commercial mortgage-related securities 2,121,913 4,218 (11,462 ) 2,114,669 Other securities (debt and equity) 4,718 111 — 4,829 Total investment securities available for sale $ 4,809,893 $ 48,454 $ (12,259 ) $ 4,846,088 Investment securities held to maturity: Obligations of state and political subdivisions (municipal securities) $ 1,129,056 $ 31,897 $ (233 ) $ 1,160,720 Residential mortgage-related securities: FNMA / FHLMC 38,297 1,009 (16 ) 39,290 GNMA 86,141 1,703 (24 ) 87,820 Total investment securities held to maturity $ 1,253,494 $ 34,609 $ (273 ) $ 1,287,830 December 31, 2015 Amortized Gross Gross Fair Value ($ in Thousands) Investment securities available for sale: U. S. Treasury securities $ 999 $ — $ (2 ) $ 997 Residential mortgage-related securities: FNMA / FHLMC 1,388,995 33,791 (8,160 ) 1,414,626 GNMA 1,605,956 507 (16,460 ) 1,590,003 Private-label 1,722 1 (14 ) 1,709 GNMA commercial mortgage-related securities 1,982,477 1,334 (28,501 ) 1,955,310 Other securities (debt and equity) 4,718 51 — 4,769 Total investment securities available for sale $ 4,984,867 $ 35,684 $ (53,137 ) $ 4,967,414 Investment securities held to maturity: Municipal securities $ 1,043,767 $ 16,803 $ (339 ) $ 1,060,231 Residential mortgage-related securities: FNMA / FHLMC 41,469 513 (645 ) 41,337 GNMA 82,994 189 (309 ) 82,874 Total investment securities held to maturity $ 1,168,230 $ 17,505 $ (1,293 ) $ 1,184,442 |
Investment securities held to maturity | The amortized cost and fair values of securities available for sale and held to maturity were as follows. September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value ($ in Thousands) Investment securities available for sale: U. S. Treasury securities $ 1,000 $ 1 $ — $ 1,001 Residential mortgage-related securities: FNMA / FHLMC 882,951 29,941 (32 ) 912,860 GNMA 1,798,096 14,183 (750 ) 1,811,529 Private-label 1,215 — (15 ) 1,200 GNMA commercial mortgage-related securities 2,121,913 4,218 (11,462 ) 2,114,669 Other securities (debt and equity) 4,718 111 — 4,829 Total investment securities available for sale $ 4,809,893 $ 48,454 $ (12,259 ) $ 4,846,088 Investment securities held to maturity: Obligations of state and political subdivisions (municipal securities) $ 1,129,056 $ 31,897 $ (233 ) $ 1,160,720 Residential mortgage-related securities: FNMA / FHLMC 38,297 1,009 (16 ) 39,290 GNMA 86,141 1,703 (24 ) 87,820 Total investment securities held to maturity $ 1,253,494 $ 34,609 $ (273 ) $ 1,287,830 December 31, 2015 Amortized Gross Gross Fair Value ($ in Thousands) Investment securities available for sale: U. S. Treasury securities $ 999 $ — $ (2 ) $ 997 Residential mortgage-related securities: FNMA / FHLMC 1,388,995 33,791 (8,160 ) 1,414,626 GNMA 1,605,956 507 (16,460 ) 1,590,003 Private-label 1,722 1 (14 ) 1,709 GNMA commercial mortgage-related securities 1,982,477 1,334 (28,501 ) 1,955,310 Other securities (debt and equity) 4,718 51 — 4,769 Total investment securities available for sale $ 4,984,867 $ 35,684 $ (53,137 ) $ 4,967,414 Investment securities held to maturity: Municipal securities $ 1,043,767 $ 16,803 $ (339 ) $ 1,060,231 Residential mortgage-related securities: FNMA / FHLMC 41,469 513 (645 ) 41,337 GNMA 82,994 189 (309 ) 82,874 Total investment securities held to maturity $ 1,168,230 $ 17,505 $ (1,293 ) $ 1,184,442 |
Amortized cost and fair values of investment securities available for sale by contractual maturity | The amortized cost and fair values of investment securities available for sale and held to maturity at September 30, 2016 , are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity ($ in Thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 4,500 $ 4,535 $ 38,786 $ 27,004 Due after one year through five years 1,200 1,200 250,221 260,817 Due after five years through ten years — — 234,104 243,746 Due after ten years — — 605,945 629,153 Total debt securities 5,700 5,735 1,129,056 1,160,720 Residential mortgage-related securities: FNMA / FHLMC 882,951 912,860 38,297 39,290 GNMA 1,798,096 1,811,529 86,141 87,820 Private-label 1,215 1,200 — — GNMA commercial mortgage-related securities 2,121,913 2,114,669 — — Equity securities 18 95 — — Total investment securities $ 4,809,893 $ 4,846,088 $ 1,253,494 $ 1,287,830 Ratio of Fair Value to Amortized Cost 100.8 % 102.7 % |
Realized gains and losses and proceeds from sale | During the first nine months of 2016 , the Corporation sold approximately $360 million of FNMA and FHLMC mortgage-related securities and reinvested into GNMA mortgage-related securities, generating a $6 million net gain on sale. This sale of FNMA and FHLMC mortgage-related securities and the subsequent purchase of GNMA mortgage-related securities lowered risk weighted assets and related capital requirements. Nine Months Ended September 30, 2016 2015 ($ in Thousands) Gross gains $ 6,403 $ 8,047 Gross losses (202 ) (4,009 ) Investment securities gains, net $ 6,201 $ 4,038 Proceeds from sales of investment securities $ 359,591 $ 1,206,242 |
Unrealized losses and fair value of available for sale and held to maturity securities, by investment category and time length | The following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at September 30, 2016 . Less than 12 months 12 months or more Total Number of Securities Unrealized Losses Fair Value Number of Securities Unrealized Losses Fair Value Unrealized Losses Fair Value ($ in Thousands) Investment securities available for sale: Residential mortgage-related securities: FNMA / FHLMC 3 $ (32 ) $ 14,694 — $ — $ — $ (32 ) $ 14,694 GNMA 8 (750 ) 280,378 — — — (750 ) 280,378 Private-label — — — 1 (15 ) 1,197 (15 ) 1,197 GNMA commercial mortgage-related securities 40 (2,035 ) 828,434 21 (9,427 ) 466,898 (11,462 ) 1,295,332 Total 51 $ (2,817 ) $ 1,123,506 22 $ (9,442 ) $ 468,095 $ (12,259 ) $ 1,591,601 Investment securities held to maturity: Municipal securities 37 $ (224 ) $ 37,317 4 $ (9 ) $ 1,842 $ (233 ) $ 39,159 Residential mortgage-related securities: FNMA / FHLMC 1 (8 ) 1,108 1 (8 ) 6,834 (16 ) 7,942 GNMA 5 (24 ) 6,317 — — — (24 ) 6,317 Total 43 $ (256 ) $ 44,742 5 $ (17 ) $ 8,676 $ (273 ) $ 53,418 For comparative purposes, the following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2015 . Less than 12 months 12 months or more Total Number Unrealized Fair Number Unrealized Fair Unrealized Fair ($ in Thousands) Investment securities available for sale: U.S. Treasury securities 1 $ (2 ) $ 997 — $ — $ — $ (2 ) $ 997 Residential mortgage-related securities: FNMA / FHLMC 17 (1,548 ) 220,852 14 (6,612 ) 338,186 (8,160 ) 559,038 GNMA 46 (16,460 ) 1,434,484 — — — (16,460 ) 1,434,484 Private-label 1 (1 ) 83 3 (13 ) 1,565 (14 ) 1,648 GNMA commercial mortgage-related securities 40 (9,610 ) 1,132,844 21 (18,891 ) 448,218 (28,501 ) 1,581,062 Total 105 $ (27,621 ) $ 2,789,260 38 $ (25,516 ) $ 787,969 $ (53,137 ) $ 3,577,229 Investment securities held to maturity: Municipal securities 53 $ (146 ) $ 23,137 24 $ (193 ) $ 9,254 $ (339 ) $ 32,391 Residential mortgage-related securities: FNMA / FHLMC 10 (177 ) 12,754 3 (468 ) 11,106 (645 ) 23,860 GNMA 21 (201 ) 45,499 3 (108 ) 6,797 (309 ) 52,296 Total 84 $ (524 ) $ 81,390 30 $ (769 ) $ 27,157 $ (1,293 ) $ 108,547 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Loan composition | The period end loan composition was as follows. September 30, December 31, ($ in Thousands) Commercial and industrial $ 6,721,557 $ 6,190,683 Commercial real estate — owner occupied 892,678 918,212 Commercial and business lending 7,614,235 7,108,895 Commercial real estate — investor 3,530,370 3,234,266 Real estate construction 1,314,431 1,162,145 Commercial real estate lending 4,844,801 4,396,411 Total commercial 12,459,036 11,505,306 Residential mortgage 6,034,166 5,783,267 Home equity 951,594 1,005,802 Other consumer 399,209 419,968 Total consumer 7,384,969 7,209,037 Total loans $ 19,844,005 $ 18,714,343 |
Commercial and consumer loans by credit quality indicator | The following table presents commercial and consumer loans by credit quality indicator at September 30, 2016 . Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 5,983,940 $ 180,425 $ 351,290 $ 205,902 $ 6,721,557 Commercial real estate - owner occupied 791,951 46,345 47,387 6,995 892,678 Commercial and business lending 6,775,891 226,770 398,677 212,897 7,614,235 Commercial real estate - investor 3,480,535 5,042 36,765 8,028 3,530,370 Real estate construction 1,303,013 8,625 1,929 864 1,314,431 Commercial real estate lending 4,783,548 13,667 38,694 8,892 4,844,801 Total commercial 11,559,439 240,437 437,371 221,789 12,459,036 Residential mortgage 5,973,633 3,832 3,226 53,475 6,034,166 Home equity 936,443 726 78 14,347 951,594 Other consumer 398,481 428 — 300 399,209 Total consumer 7,308,557 4,986 3,304 68,122 7,384,969 Total loans $ 18,867,996 $ 245,423 $ 440,675 $ 289,911 $ 19,844,005 The following table presents commercial and consumer loans by credit quality indicator at December 31, 2015 . Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 5,522,809 $ 341,169 $ 233,130 $ 93,575 $ 6,190,683 Commercial real estate - owner occupied 835,572 38,885 35,706 8,049 918,212 Commercial and business lending 6,358,381 380,054 268,836 101,624 7,108,895 Commercial real estate - investor 3,153,703 45,976 25,944 8,643 3,234,266 Real estate construction 1,157,034 252 3,919 940 1,162,145 Commercial real estate lending 4,310,737 46,228 29,863 9,583 4,396,411 Total commercial 10,669,118 426,282 298,699 111,207 11,505,306 Residential mortgage 5,727,437 1,552 2,796 51,482 5,783,267 Home equity 988,574 1,762 222 15,244 1,005,802 Other consumer 419,087 556 — 325 419,968 Total consumer 7,135,098 3,870 3,018 67,051 7,209,037 Total loans $ 17,804,216 $ 430,152 $ 301,717 $ 178,258 $ 18,714,343 |
Summarized details of Loans | The following table presents loans by past due status at September 30, 2016 . Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (a) Nonaccrual (b) Total ($ in Thousands) Commercial and industrial $ 6,514,451 $ 576 $ 374 $ 254 $ 205,902 $ 6,721,557 Commercial real estate - owner occupied 884,814 754 115 — 6,995 892,678 Commercial and business lending 7,399,265 1,330 489 254 212,897 7,614,235 Commercial real estate - investor 3,521,712 17 613 — 8,028 3,530,370 Real estate construction 1,313,165 337 65 — 864 1,314,431 Commercial real estate lending 4,834,877 354 678 — 8,892 4,844,801 Total commercial 12,234,142 1,684 1,167 254 221,789 12,459,036 Residential mortgage 5,973,994 6,407 290 — 53,475 6,034,166 Home equity 931,774 4,627 846 — 14,347 951,594 Other consumer 395,606 1,499 547 1,257 300 399,209 Total consumer 7,301,374 12,533 1,683 1,257 68,122 7,384,969 Total loans $ 19,535,516 $ 14,217 $ 2,850 $ 1,511 $ 289,911 $ 19,844,005 (a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at September 30, 2016 (the same as the reported balances for the accruing loans noted above). (b) Of the total nonaccrual loans, $215 million or 74% were current with respect to payment at September 30, 2016 . The following table presents loans by past due status at December 31, 2015 . Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (a) Nonaccrual (b) Total ($ in Thousands) Commercial and industrial $ 6,095,848 $ 602 $ 409 $ 249 $ 93,575 $ 6,190,683 Commercial real estate - owner occupied 903,021 7,142 — — 8,049 918,212 Commercial and business lending 6,998,869 7,744 409 249 101,624 7,108,895 Commercial real estate - investor 3,225,332 291 — — 8,643 3,234,266 Real estate construction 1,160,909 270 26 — 940 1,162,145 Commercial real estate lending 4,386,241 561 26 — 9,583 4,396,411 Total commercial 11,385,110 8,305 435 249 111,207 11,505,306 Residential mortgage 5,726,855 4,491 439 — 51,482 5,783,267 Home equity 982,639 6,190 1,729 — 15,244 1,005,802 Other consumer 416,374 1,195 675 1,399 325 419,968 Total consumer 7,125,868 11,876 2,843 1,399 67,051 7,209,037 Total loans $ 18,510,978 $ 20,181 $ 3,278 $ 1,648 $ 178,258 $ 18,714,343 (a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at December 31, 2015 (the same as the reported balances for the accruing loans noted above). (b) Of the total nonaccrual loans, $124 million or 69% were current with respect to payment at December 31, 2015 . |
Summarized details of impaired Loans | The following table presents impaired loans at September 30, 2016 . Recorded Unpaid Related Average Interest ($ in Thousands) Loans with a related allowance Commercial and industrial $ 61,219 $ 65,586 $ 9,293 $ 61,337 $ 1,228 Commercial real estate — owner occupied 8,721 10,641 319 9,133 262 Commercial and business lending 69,940 76,227 9,612 70,470 1,490 Commercial real estate — investor 17,154 17,601 629 21,450 1,405 Real estate construction 1,229 1,626 449 1,301 49 Commercial real estate lending 18,383 19,227 1,078 22,751 1,454 Total commercial 88,323 95,454 10,690 93,221 2,944 Residential mortgage 65,381 70,568 12,087 66,845 1,734 Home equity 21,382 23,277 10,162 22,654 862 Other consumer 1,226 1,288 211 1,268 22 Total consumer 87,989 95,133 22,460 90,767 2,618 Total loans $ 176,312 $ 190,587 $ 33,150 $ 183,988 $ 5,562 Loans with no related allowance Commercial and industrial $ 174,931 $ 221,213 $ — $ 179,696 $ 1,227 Commercial real estate — owner occupied 5,719 6,472 — 5,906 — Commercial and business lending 180,650 227,685 — 185,602 1,227 Commercial real estate — investor 6,226 6,501 — 7,393 — Real estate construction — — — — — Commercial real estate lending 6,226 6,501 — 7,393 — Total commercial 186,876 234,186 — 192,995 1,227 Residential mortgage 6,143 6,289 — 6,206 133 Home equity 650 650 — 651 23 Other consumer — — — — — Total consumer 6,793 6,939 — 6,857 156 Total loans $ 193,669 $ 241,125 $ — $ 199,852 $ 1,383 Total Commercial and industrial $ 236,150 $ 286,799 $ 9,293 $ 241,033 $ 2,455 Commercial real estate — owner occupied 14,440 17,113 319 15,039 262 Commercial and business lending 250,590 303,912 9,612 256,072 2,717 Commercial real estate — investor 23,380 24,102 629 28,843 1,405 Real estate construction 1,229 1,626 449 1,301 49 Commercial real estate lending 24,609 25,728 1,078 30,144 1,454 Total commercial 275,199 329,640 10,690 286,216 4,171 Residential mortgage 71,524 76,857 12,087 73,051 1,867 Home equity 22,032 23,927 10,162 23,305 885 Other consumer 1,226 1,288 211 1,268 22 Total consumer 94,782 102,072 22,460 97,624 2,774 Total impaired loans (a) $ 369,981 $ 431,712 $ 33,150 $ 383,840 $ 6,945 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 78% of the unpaid principal balance at September 30, 2016 . The following table presents impaired loans at December 31, 2015 . Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ in Thousands) Loans with a related allowance Commercial and industrial $ 57,785 $ 59,409 $ 8,162 $ 46,833 $ 855 Commercial real estate — owner occupied 9,705 9,804 448 10,087 412 Commercial and business lending 67,490 69,213 8,610 56,920 1,267 Commercial real estate — investor 27,822 29,444 1,831 28,278 1,914 Real estate construction 1,450 2,154 453 1,667 66 Commercial real estate lending 29,272 31,598 2,284 29,945 1,980 Total commercial 96,762 100,811 10,894 86,865 3,247 Residential mortgage 66,590 71,084 12,462 68,183 2,374 Home equity 21,769 23,989 10,118 22,624 1,147 Other consumer 1,154 1,225 195 1,199 30 Total consumer 89,513 96,298 22,775 92,006 3,551 Total loans $ 186,275 $ 197,109 $ 33,669 $ 178,871 $ 6,798 Loans with no related allowance Commercial and industrial $ 65,083 $ 72,259 $ — $ 79,573 $ 1,657 Commercial real estate — owner occupied 6,221 6,648 — 6,534 15 Commercial and business lending 71,304 78,907 — 86,107 1,672 Commercial real estate — investor 2,736 2,840 — 2,763 90 Real estate construction — — — — — Commercial real estate lending 2,736 2,840 — 2,763 90 Total commercial 74,040 81,747 — 88,870 1,762 Residential mortgage 4,762 5,033 — 4,726 126 Home equity 544 544 — 544 30 Other consumer — — — — — Total consumer 5,306 5,577 — 5,270 156 Total loans $ 79,346 $ 87,324 $ — $ 94,140 $ 1,918 Total Commercial and industrial $ 122,868 $ 131,668 $ 8,162 $ 126,406 $ 2,512 Commercial real estate — owner occupied 15,926 16,452 448 16,621 427 Commercial and business lending 138,794 148,120 8,610 143,027 2,939 Commercial real estate — investor 30,558 32,284 1,831 31,041 2,004 Real estate construction 1,450 2,154 453 1,667 66 Commercial real estate lending 32,008 34,438 2,284 32,708 2,070 Total commercial 170,802 182,558 10,894 175,735 5,009 Residential mortgage 71,352 76,117 12,462 72,909 2,500 Home equity 22,313 24,533 10,118 23,168 1,177 Other consumer 1,154 1,225 195 1,199 30 Total consumer 94,819 101,875 22,775 97,276 3,707 Total impaired loans (a) $ 265,621 $ 284,433 $ 33,669 $ 273,011 $ 8,716 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 82% of the unpaid principal balance at December 31, 2015 . |
Nonaccrual and performing restructured loans | The following table presents nonaccrual and performing restructured loans by loan portfolio. September 30, 2016 December 31, 2015 Performing Restructured Loans Nonaccrual Restructured Loans (a) Performing Restructured Loans Nonaccrual Restructured Loans (a) ($ in Thousands) Commercial and industrial $ 30,248 $ 2,398 $ 29,293 $ 1,714 Commercial real estate — owner occupied 7,445 2,275 7,877 2,703 Commercial real estate — investor 15,352 941 21,915 3,936 Real estate construction 365 154 510 177 Residential mortgage 18,049 22,743 19,870 24,592 Home equity 7,685 3,209 7,069 4,522 Other consumer 926 38 829 40 Total restructured loans $ 80,070 $ 31,758 $ 87,363 $ 37,684 (a) Nonaccrual restructured loans have been included within nonaccrual loans. |
Summary of restructured loans | The following table provides the number of loans modified in a troubled debt restructuring by loan portfolio during the nine months ended September 30, 2016 and 2015 , and the recorded investment and unpaid principal balance as of September 30, 2016 and 2015 . Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Number of Loans Recorded Investment (a) Unpaid Principal Balance (b) Number of Loans Recorded Investment (a) Unpaid Principal Balance (b) ($ in Thousands) Commercial and industrial 10 $ 2,455 $ 2,517 10 $ 2,410 $ 3,033 Commercial real estate — owner occupied 1 117 124 4 2,847 3,007 Commercial real estate — investor — — — 3 2,949 2,998 Real estate construction 1 66 91 1 5 5 Residential mortgage 56 4,676 4,922 77 7,393 7,586 Home equity 47 1,709 1,793 61 2,109 2,220 Other consumer 1 15 16 — — — Total 116 $ 9,038 $ 9,463 156 $ 17,713 $ 18,849 (a) Represents post-modification outstanding recorded investment. (b) Represents pre-modification outstanding recorded investment. |
Troubled debt restructurings subsequent redefault | The following table provides the number of loans modified in a troubled debt restructuring during the previous twelve months which subsequently defaulted during the nine months ended September 30, 2016 and 2015 , as well as the recorded investment in these restructured loans as of September 30, 2016 and 2015 . Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Number of Loans Recorded Investment Number of Loans Recorded Investment ($ in Thousands) Commercial and industrial — $ — 1 $ 153 Commercial real estate — owner occupied — — 1 297 Residential mortgage 36 3,310 45 4,176 Home equity 12 182 21 627 Other consumer 1 15 — — Total 49 $ 3,507 68 $ 5,253 |
Changes in the allowance for loan losses by portfolio segment | For comparison purposes, a summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2015 , was as follows. $ in Thousands Commercial and industrial Commercial real estate - owner occupied Commercial real estate - investor Real estate construction Residential mortgage Home equity Other consumer Total December 31, 2014 $ 117,635 $ 16,510 $ 46,333 $ 20,999 $ 31,926 $ 26,464 $ 6,435 $ 266,302 Charge offs (27,687 ) (2,645 ) (4,645 ) (750 ) (5,636 ) (7,048 ) (3,869 ) (52,280 ) Recoveries 9,821 921 4,157 2,268 1,077 3,233 765 22,242 Net charge offs (17,866 ) (1,724 ) (488 ) 1,518 (4,559 ) (3,815 ) (3,104 ) (30,038 ) Provision for loan losses 30,190 3,894 (2,827 ) 2,749 894 906 2,194 38,000 December 31, 2015 $ 129,959 $ 18,680 $ 43,018 $ 25,266 $ 28,261 $ 23,555 $ 5,525 $ 274,264 Allowance for loan losses: Individually evaluated for impairment $ 7,522 $ — $ 229 $ — $ 166 $ 46 $ — $ 7,963 Collectively evaluated for impairment 122,437 18,680 42,789 25,266 28,095 23,509 5,525 266,301 Total allowance for loan losses $ 129,959 $ 18,680 $ 43,018 $ 25,266 $ 28,261 $ 23,555 $ 5,525 $ 274,264 Loans: Individually evaluated for impairment $ 91,569 $ 6,221 $ 5,460 $ — $ 6,956 $ 1,281 $ — $ 111,487 Collectively evaluated for impairment 6,099,114 911,991 3,228,806 1,162,145 5,776,311 1,004,521 419,968 18,602,856 Total loans $ 6,190,683 $ 918,212 $ 3,234,266 $ 1,162,145 $ 5,783,267 $ 1,005,802 $ 419,968 $ 18,714,343 A summary of the changes in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2016 , was as follows. $ in Thousands Commercial and industrial Commercial real estate - owner occupied Commercial real estate - investor Real estate construction Residential mortgage Home equity Other consumer Total December 31, 2015 $ 129,959 $ 18,680 $ 43,018 $ 25,266 $ 28,261 $ 23,555 $ 5,525 $ 274,264 Charge offs (63,368 ) (265 ) (1,495 ) (380 ) (3,035 ) (3,434 ) (2,853 ) (74,830 ) Recoveries 13,461 48 1,610 111 506 2,730 640 19,106 Net charge offs (49,907 ) (217 ) 115 (269 ) (2,529 ) (704 ) (2,213 ) (55,724 ) Provision for loan losses 57,051 (4,106 ) (2,366 ) (1,873 ) 1,121 (897 ) 2,070 51,000 September 30, 2016 $ 137,103 $ 14,357 $ 40,767 $ 23,124 $ 26,853 $ 21,954 $ 5,382 $ 269,540 Allowance for loan losses: Individually evaluated for impairment $ 8,570 $ — $ 79 $ — $ 976 $ — $ — $ 9,625 Collectively evaluated for impairment 128,533 14,357 40,688 23,124 25,877 21,954 5,382 259,915 Total allowance for loan losses $ 137,103 $ 14,357 $ 40,767 $ 23,124 $ 26,853 $ 21,954 $ 5,382 $ 269,540 Loans: Individually evaluated for impairment $ 203,834 $ 5,719 $ 7,023 $ — $ 9,389 $ 650 $ — $ 226,615 Collectively evaluated for impairment 6,517,723 886,959 3,523,347 1,314,431 6,024,777 950,944 399,209 19,617,390 Total loans $ 6,721,557 $ 892,678 $ 3,530,370 $ 1,314,431 $ 6,034,166 $ 951,594 $ 399,209 $ 19,844,005 |
Changes in the allowance for unfunded commitments | A summary of the changes in the allowance for unfunded commitments was as follows. Nine Months Ended September 30, 2016 Year Ended December 31, 2015 ($ in Thousands) Allowance for Unfunded Commitments: Balance at beginning of period $ 24,400 $ 24,900 Provision for unfunded commitments 4,000 (500 ) Balance at end of period $ 28,400 $ 24,400 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of core deposit intangibles and other intangibles | For core deposit intangibles and other intangibles, changes in the gross carrying amount, accumulated amortization, and net book value were as follows. Nine Months Ended September 30, 2016 Year Ended December 31, 2015 ($ in Thousands) Core deposit intangibles: Gross carrying amount $ 4,385 $ 19,545 Accumulated amortization (4,203 ) (19,152 ) Net book value $ 182 $ 393 Amortization during the year $ 211 $ 1,404 Other intangibles: Gross carrying amount $ 32,410 $ 31,398 Accumulated amortization (16,690 ) (15,333 ) Net book value $ 15,720 $ 16,065 Additions during the period $ 1,012 $ 12,115 Amortization during the year $ 1,357 $ 1,690 |
Summary of changes in balance of mortgage servicing rights asset and mortgage servicing rights valuation allowance | A summary of changes in the balance of the mortgage servicing rights asset and the mortgage servicing rights valuation allowance was as follows. Nine Months Ended September 30, 2016 Year Ended December 31, 2015 ($ in Thousands) Mortgage servicing rights: Mortgage servicing rights at beginning of period $ 62,150 $ 61,379 Additions 8,701 12,372 Amortization (9,142 ) (11,601 ) Mortgage servicing rights at end of period $ 61,709 $ 62,150 Valuation allowance at beginning of period (809 ) (1,234 ) (Additions) recoveries, net (2,486 ) 425 Valuation allowance at end of period (3,295 ) (809 ) Mortgage servicing rights, net $ 58,414 $ 61,341 Fair value of mortgage servicing rights $ 58,937 $ 70,686 Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) $ 8,010,973 $ 7,915,224 Mortgage servicing rights, net to servicing portfolio 0.73 % 0.77 % Mortgage servicing rights expense (1) $ 11,628 $ 11,176 (1) Includes the amortization of mortgage servicing rights and additions / recoveries to the valuation allowance of mortgage servicing rights, and is a component of mortgage banking, net in the consolidated statements of income. |
Summary of estimated future amortization expense | The following table shows the estimated future amortization expense for amortizing intangible assets. The projections of amortization expense are based on existing asset balances, the current interest rate environment, and prepayment speeds as of September 30, 2016 . The actual amortization expense the Corporation recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements, and events or circumstances that indicate the carrying amount of an asset may not be recoverable. Estimated Amortization Expense Core Deposit Intangibles Other Intangibles Mortgage Servicing Rights ($ in Thousands) Three months ending December 31, 2016 $ 70 $ 455 $ 3,263 2017 112 1,786 11,237 2018 — 1,756 8,956 2019 — 1,457 7,223 2020 — 1,340 5,858 2021 — 1,316 4,784 Beyond 2021 — 7,610 20,388 Total Estimated Amortization Expense $ 182 $ 15,720 $ 61,709 |
Short and Long-Term Funding (Ta
Short and Long-Term Funding (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Breakdown of short & long-term debt balances | The components of short-term funding (funding with original contractual maturities of one year or less) and long-term funding (funding with original contractual maturities greater than one year) were as follows. September 30, 2016 December 31, 2015 ($ in Thousands) Short-Term Funding Federal funds purchased $ 221,165 $ 47,870 Securities sold under agreements to repurchase 477,607 383,568 Federal funds purchased and securities sold under agreements to repurchase 698,772 431,438 FHLB advances 450,000 335,000 Commercial paper 91,321 67,978 Other short-term funding 541,321 402,978 Total short-term funding $ 1,240,093 $ 834,416 Long-Term Funding FHLB advances $ 2,265,198 $ 1,750,225 Senior notes, at par 250,000 680,000 Subordinated notes, at par 250,000 250,000 Other long-term funding and capitalized costs (3,563 ) (4,061 ) Total long-term funding 2,761,635 2,676,164 Total short and long-term funding $ 4,001,728 $ 3,510,580 |
Remaining contractual maturity of securities sold under agreements to repurchase | The remaining contractual maturity of the securities sold under agreements to repurchase in the consolidated balance sheets as of September 30, 2016 and December 31, 2015 are presented in the following table. Remaining Contractual Maturity of the Agreements September 30, 2016 Overnight and Continuous Up to 30 days 30-90 days Greater than 90 days Total ($ in Thousands) Repurchase agreements GSE securities $ 477,607 $ — $ — $ — $ 477,607 Total $ 477,607 $ — $ — $ — $ 477,607 December 31, 2015 Repurchase agreements GSE securities $ 383,568 $ — $ — $ — $ 383,568 Total $ 383,568 $ — $ — $ — $ 383,568 |
Derivative and Hedging Activi32
Derivative and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Balance sheet category and fair values of derivative instruments not designated as hedging instruments | The table below identifies the balance sheet category and fair values of the Corporation’s derivative instruments to accommodate customer needs which are not designated as hedging instruments. September 30, 2016 December 31, 2015 ($ in Thousands) Notional Amount Fair Value Balance Sheet Category Notional Amount Fair Balance Sheet Interest rate-related instruments — customer and mirror $ 1,953,306 $ 47,504 Trading assets $ 1,665,965 $ 29,391 Trading assets Interest rate-related instruments — customer and mirror 1,953,306 (49,887 ) Trading liabilities 1,665,965 (30,886 ) Trading liabilities Foreign currency exchange forwards 77,732 1,063 Trading assets 72,976 1,532 Trading assets Foreign currency exchange forwards 76,945 (1,014 ) Trading liabilities 65,649 (1,398 ) Trading liabilities Commodity contracts 158,209 12,213 Trading assets 44,380 1,269 Trading assets Commodity contracts 159,048 (11,400 ) Trading liabilities 44,256 (1,146 ) Trading liabilities |
Summary Of Other derivative instruments not designated as hedging instruments | The table below identifies the balance sheet category and fair values of the Corporation’s derivative instruments which are not designated as hedging instruments. September 30, 2016 December 31, 2015 ($ in Thousands) Notional Amount Fair Balance Sheet Notional Amount Fair Balance Sheet Interest rate lock commitments (mortgage) $ 520,932 $ 3,726 Other assets $ 271,530 $ 958 Other assets Forward commitments (mortgage) 383,000 (1,868 ) Other liabilities 231,798 403 Other assets Purchased options (time deposit) 81,004 2,455 Other assets 104,582 2,715 Other assets Written options (time deposit) 81,004 (2,455 ) Other liabilities 104,582 (2,715 ) Other liabilities |
Gain (loss) on derivative instruments not designated as hedging instruments | The table below identifies the income statement category of the gains and losses recognized in income on the Corporation’s derivative instruments not designated as hedging instruments. Income Statement Category of Gain / (Loss) Recognized in Income For the Nine Months Ended September 30, ($ in Thousands) 2016 2015 Interest rate-related instruments — customer and mirror, net Capital market fees, net $ (888 ) $ 85 Interest rate lock commitments (mortgage) Mortgage banking, net 2,768 637 Forward commitments (mortgage) Mortgage banking, net (2,271 ) 453 Foreign currency exchange forwards Capital market fees, net (85 ) 16 Commodity contracts Capital market fees, net 690 — |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Offsetting [Abstract] | |
Balance sheet offsetting of derivative assets and liabilities | The following table presents the assets and liabilities subject to an enforceable master netting arrangement. The interest and commodity agreements we have with our commercial customers are not subject to an enforceable master netting arrangement, and therefore, are excluded from this table. Gross amounts recognized Gross amounts not offset in the balance sheet Gross amounts offset in the balance sheet Net amounts presented in the balance sheet Financial instruments Collateral Net amount ($ in Thousands) September 30, 2016 Derivative assets: Interest and commodity agreements $ 5,193 $ — $ 5,193 $ (5,193 ) $ — $ — Derivative liabilities: Interest and commodity agreements $ 59,413 $ — $ 59,413 $ (5,193 ) $ (54,220 ) $ — December 31, 2015 Derivative assets: Interest and commodity instruments $ 1,466 $ — $ 1,466 $ (1,466 ) $ — $ — Derivative liabilities: Interest and commodity instruments $ 30,200 $ — $ 30,200 $ (1,466 ) $ (28,734 ) $ — |
Commitments, Off-Balance Shee34
Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of lending-related and other commitments | The following is a summary of lending-related commitments. September 30, 2016 December 31, 2015 ($ in Thousands) Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale(1)(2) $ 7,849,498 $ 7,402,518 Commercial letters of credit(1) 8,935 9,945 Standby letters of credit(3) 265,381 296,508 1) These off-balance sheet financial instruments are exercisable at the market rate prevailing at the date the underlying transaction will be completed and, thus, are deemed to have no current fair value, or the fair value is based on fees currently charged to enter into similar agreements and is not material at September 30, 2016 or December 31, 2015 . 2) Interest rate lock commitments to originate residential mortgage loans held for sale are considered derivative instruments and are disclosed in Note 10 . 3) The Corporation has established a liability of $3 million at both September 30, 2016 and December 31, 2015 , as an estimate of the fair value of these financial instruments. |
Summary of changes in the residential mortgage repurchase reserve | The following summarizes the changes in the mortgage repurchase reserve. Nine Months Ended September 30, 2016 Year Ended December 31, 2015 ($ in Thousands) Balance at beginning of period $ 1,197 $ 3,258 Repurchase provision expense 342 428 Adjustments to provision expense — (2,450 ) Charge offs, net (5 ) (39 ) Balance at end of period $ 1,534 $ 1,197 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured on recurring basis at fair value | The table below presents the Corporation’s investment securities available for sale and derivative financial instruments measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 , aggregated by the level in the fair value hierarchy within which those measurements fall. Assets and Liabilities Measured at Fair Value on a Recurring Basis Fair Value Hierarchy September 30, 2016 December 31, 2015 ($ in Thousands) Assets: Investment securities available for sale: U.S. Treasury securities Level 1 $ 1,001 $ 997 Residential mortgage-related securities: FNMA / FHLMC Level 2 912,860 1,414,626 GNMA Level 2 1,811,529 1,590,003 Private-label Level 2 1,200 1,709 GNMA commercial mortgage-related securities Level 2 2,114,669 1,955,310 Other securities (debt and equity) Level 1 1,629 1,569 Other securities (debt and equity) Level 2 3,000 3,000 Other securities (debt and equity) Level 3 200 200 Total investment securities available for sale Level 1 2,630 2,566 Total investment securities available for sale Level 2 4,843,258 4,964,648 Total investment securities available for sale Level 3 200 200 Interest rate-related instruments Level 2 47,504 29,391 Foreign currency exchange forwards Level 2 1,063 1,532 Interest rate lock commitments to originate residential mortgage loans held for sale Level 3 3,726 958 Forward commitments to sell residential mortgage loans Level 3 — 403 Commodity contracts Level 2 12,213 1,269 Purchased options (time deposit) Level 2 2,455 2,715 Liabilities: Interest rate-related instruments Level 2 $ 49,887 $ 30,886 Foreign currency exchange forwards Level 2 1,014 1,398 Forward commitments to sell residential mortgage loans Level 3 1,868 — Commodity contracts Level 2 11,400 1,146 Written options (time deposit) Level 2 2,455 2,715 |
Assets and liabilities measured at fair value using significant unobservable inputs (level 3) | The table below presents a rollforward of the balance sheet amounts for the nine months ended September 30, 2016 and the year ended December 31, 2015 , for financial instruments measured on a recurring basis and classified within Level 3 of the fair value hierarchy. Investment Securities Available for Sale Derivative Financial Instruments ($ in Thousands) Balance December 31, 2014 $ 200 $ (488 ) Total net gains included in income: Mortgage derivative gain — 1,849 Balance December 31, 2015 $ 200 $ 1,361 Total net gains included in income: Mortgage derivative gain — 497 Balance September 30, 2016 $ 200 $ 1,858 |
Assets and liabilities measured on nonrecurring basis at fair value | The table below presents the Corporation’s loans held for sale, impaired loans, and mortgage servicing rights measured at fair value on a nonrecurring basis as of September 30, 2016 and December 31, 2015 , aggregated by the level in the fair value hierarchy within which those measurements fall. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Income Statement Category of Adjustment Recognized in Income ($ in Thousands) Fair Value Hierarchy Fair Value September 30, 2016 Assets: Commercial loans held for sale Level 2 $ 16,912 Provision for credit losses $ (451 ) Mortgage loans held for sale (1) Level 2 214,298 Mortgage banking, net — Impaired loans (2) Level 3 47,554 Provision for credit losses (53,866 ) Mortgage servicing rights Level 3 58,937 Mortgage banking, net (2,486 ) December 31, 2015 Assets: Mortgage loans held for sale Level 2 $ 124,915 Mortgage banking, net $ (155 ) Impaired loans (2) Level 3 41,891 Provision for credit losses (7,796 ) Mortgage servicing rights Level 3 70,686 Mortgage banking, net 425 (1) Loans held for sale are carried at the lower of cost or estimated fair value. At September 30, 2016 , the estimated fair value exceeded the cost and therefore there was no adjustment recognized in the Consolidated Statements of Income. (2) Represents individually evaluated impaired loans, net of the related allowance for loan losses. |
Estimated fair values of financial instruments | Fair value estimates, methods, and assumptions are set forth below for the Corporation’s financial instruments. September 30, 2016 December 31, 2015 Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value ($ in Thousands) Financial assets: Cash and due from banks Level 1 $ 356,047 $ 356,047 $ 374,921 $ 374,921 Interest-bearing deposits in other financial institutions Level 1 240,010 240,010 79,764 79,764 Federal funds sold and securities purchased under agreements to resell Level 1 14,250 14,250 19,000 19,000 Investment securities held to maturity Level 2 1,253,494 1,287,830 1,168,230 1,184,442 Investment securities available for sale Level 1 2,630 2,630 2,566 2,566 Investment securities available for sale Level 2 4,843,258 4,843,258 4,964,648 4,964,648 Investment securities available for sale Level 3 200 200 200 200 FHLB and Federal Reserve Bank stocks Level 2 140,215 140,215 147,240 147,240 Loans held for sale Level 2 230,795 231,210 124,915 124,915 Loans, net Level 3 19,574,465 19,588,911 18,440,079 18,389,832 Bank owned life insurance Level 2 584,088 584,088 583,019 583,019 Derivatives (trading and other assets) Level 2 63,235 63,235 34,907 34,907 Derivatives (trading and other assets) Level 3 3,726 3,726 1,361 1,361 Financial liabilities: Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts Level 3 $ 20,221,611 $ 20,221,611 $ 19,444,863 $ 19,444,863 Brokered CDs and other time deposits Level 2 1,526,101 1,530,993 1,562,802 1,564,464 Short-term funding Level 2 1,240,093 1,240,093 834,416 834,416 Long-term funding Level 2 2,761,635 2,820,062 2,676,164 2,728,112 Standby letters of credit (1) Level 2 2,619 2,619 2,954 2,954 Derivatives (trading and other liabilities) Level 2 64,756 64,756 36,145 36,145 Derivatives (trading and other liabilities) Level 3 1,868 1,868 — — (1) The commitment on standby letters of credit was $265 million and $297 million at September 30, 2016 and December 31, 2015 , respectively. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Net period benefit cost for the pension and postretirement plans | The components of net periodic benefit cost for the RAP and Postretirement Plans for three and nine months ended September 30, 2016 and 2015 were as follows. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 ($ in Thousands) Components of Net Periodic Benefit Cost Pension Plan: Service cost $ 1,636 $ 2,318 $ 5,086 $ 8,443 Interest cost 1,781 1,678 5,341 4,963 Expected return on plan assets (5,085 ) (5,379 ) (15,215 ) (16,079 ) Amortization of prior service cost (80 ) 12 (55 ) 37 Amortization of actuarial loss 621 627 1,586 1,692 Total net periodic pension cost $ (1,127 ) $ (744 ) $ (3,257 ) $ (944 ) Postretirement Plan: Interest cost $ 35 $ 35 $ 107 $ 105 Total net periodic benefit cost $ 35 $ 35 $ 107 $ 105 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Selected segment information | Information about the Corporation’s segments is presented below. Segment Income Statement Data ($ in Thousands) Corporate and Commercial Specialty Community, Consumer, and Business Risk Management and Shared Services Consolidated Total Nine Months Ended September 30, 2016 Net interest income $ 242,800 $ 257,848 $ 26,590 $ 527,238 Noninterest income 35,172 207,460 17,962 260,594 Total revenue 277,972 465,308 44,552 787,832 Credit provision* 38,933 18,357 (2,290 ) 55,000 Noninterest expense 109,511 370,714 43,420 523,645 Income before income taxes 129,528 76,237 3,422 209,187 Income tax expense (benefit) 42,623 26,683 (5,560 ) 63,746 Net income $ 86,905 $ 49,554 $ 8,982 $ 145,441 Return on average allocated capital (ROCET1)** 10.9 % 10.5 % 1.4 % 9.7 % Nine Months Ended September 30, 2015 Net interest income $ 230,130 $ 261,951 $ 12,729 $ 504,810 Noninterest income 36,222 199,753 10,385 246,360 Total revenue 266,352 461,704 23,114 751,170 Credit provision* 30,312 19,625 (32,437 ) 17,500 Noninterest expense 106,643 366,121 49,590 522,354 Income before income taxes 129,397 75,958 5,961 211,316 Income tax expense (benefit) 44,384 26,585 (5,163 ) 65,806 Net income $ 85,013 $ 49,373 $ 11,124 $ 145,510 Return on average allocated capital (ROCET1)** 11.8 % 10.3 % 3.9 % 10.3 % Segment Balance Sheet Data ($ in Thousands) Corporate and Commercial Specialty Community, Consumer, and Business Risk Management and Shared Services Consolidated Total Average Balances for YTD September 2016 Average earning assets $ 10,097,995 $ 9,287,158 $ 6,508,356 $ 25,893,509 Average loans 10,088,777 9,285,848 166,447 19,541,072 Average deposits 5,906,695 11,320,106 3,531,614 20,758,415 Average allocated capital (CET1)** $ 1,063,598 $ 631,484 $ 225,813 $ 1,920,895 Average Balances for YTD September 2015 Average earning assets $ 9,373,312 $ 8,719,078 $ 6,326,369 $ 24,418,759 Average loans 9,363,936 8,719,078 71,378 18,154,392 Average deposits 5,730,918 10,786,342 3,145,612 19,662,872 Average allocated capital (CET1)** $ 966,746 $ 640,116 $ 213,750 $ 1,820,612 Segment Income Statement Data ($ in Thousands) Corporate and Commercial Specialty Community, Consumer, and Business Risk Management and Shared Services Consolidated Total Three Months Ended September 30, 2016 Net interest income $ 83,567 $ 87,274 $ 7,693 $ 178,534 Noninterest income 12,623 78,580 4,031 95,234 Total revenue 96,190 165,854 11,724 273,768 Credit provision* 11,080 5,969 3,951 21,000 Noninterest expense 37,968 127,454 9,892 175,314 Income (loss) before income taxes 47,142 32,431 (2,119 ) 77,454 Income tax expense (benefit) 14,907 11,351 (2,620 ) 23,638 Net income $ 32,235 $ 21,080 $ 501 $ 53,816 Return on average allocated capital (ROCET1)** 11.7 % 13.2 % (2.9 )% 10.5 % Three Months Ended September 30, 2015 Net interest income $ 78,283 $ 88,209 $ 4,017 $ 170,509 Noninterest income 11,305 64,879 3,881 80,065 Total revenue 89,588 153,088 7,898 250,574 Credit provision* 10,851 5,963 (8,814 ) 8,000 Noninterest expense 37,293 122,361 11,931 171,585 Income before income taxes 41,444 24,764 4,781 70,989 Income tax expense (benefit) 13,955 8,667 (1,071 ) 21,551 Net income $ 27,489 $ 16,097 $ 5,852 $ 49,438 Return on average allocated capital (ROCET1)** 11.0 % 10.1 % 6.7 % 10.2 % Segment Balance Sheet Data ($ in Thousands) Corporate and Commercial Specialty Community, Consumer, and Business Risk Management and Shared Services Consolidated Total Average Balances for 3Q16 Average earning assets $ 10,441,454 $ 9,414,718 $ 6,577,991 $ 26,434,163 Average loans 10,435,341 9,413,401 204,034 20,052,776 Average deposits 6,227,305 11,526,639 3,650,081 21,404,025 Average allocated capital (CET1)** $ 1,091,624 $ 633,392 $ 227,600 $ 1,952,616 Average Balances for 3Q15 Average earning assets $ 9,475,469 $ 8,917,831 $ 6,441,043 $ 24,834,343 Average loans 9,466,761 8,917,831 68,157 18,452,749 Average deposits 6,044,306 10,969,172 3,280,121 20,293,599 Average allocated capital (CET1)** $ 988,283 $ 632,878 $ 216,275 $ 1,837,436 * The consolidated credit provision is equal to the actual reported provision for credit losses. ** The Federal Reserve establishes capital adequacy requirements for the Corporation. Average allocated capital represents average common equity Tier 1, as defined by the Federal Reserve. For segment reporting purposes, the ROCET1, a non-GAAP financial measure, reflects return on average allocated common equity Tier 1 (“CET1”). The ROCET1 for the Risk Management and Shared Services segment and the Consolidated Total is inclusive of the annualized effect of the preferred stock dividends. |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of activity in accumulated other comprehensive income (loss) | The following table summarizes the components of accumulated other comprehensive income (loss) at September 30, 2016 and 2015 , changes during the three and nine month periods then ended, and reclassifications out of accumulated other comprehensive income (loss) during the three and nine month periods ended September 30, 2016 and 2015 , respectively. ($ in Thousands) Investments Defined Benefit Accumulated Balance January 1, 2016 $ 459 $ (33,075 ) $ (32,616 ) Other comprehensive income before reclassifications 59,849 — 59,849 Amounts reclassified from accumulated other comprehensive income (loss): Investment securities gain, net (6,201 ) — (6,201 ) Personnel expense — 1,531 1,531 Interest income (Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities) (4,465 ) — (4,465 ) Income tax expense (18,768 ) (584 ) (19,352 ) Net other comprehensive income during period 30,415 947 31,362 Balance September 30, 2016 $ 30,874 $ (32,128 ) $ (1,254 ) Balance January 1, 2015 $ 18,512 $ (23,362 ) $ (4,850 ) Other comprehensive income before reclassifications 35,101 — 35,101 Amounts reclassified from accumulated other comprehensive income (loss): Investment securities gain, net (4,038 ) — (4,038 ) Personnel expense — 1,729 1,729 Income tax expense (11,907 ) (659 ) (12,566 ) Net other comprehensive income during period 19,156 1,070 20,226 Balance September 30, 2015 $ 37,668 $ (22,292 ) $ 15,376 ($ in Thousands) Investments Defined Benefit Accumulated Balance July 1, 2016 $ 45,916 $ (32,463 ) $ 13,453 Other comprehensive loss before reclassifications (22,894 ) — (22,894 ) Amounts reclassified from accumulated other comprehensive income (loss): Investment securities loss, net 13 — 13 Personnel expense — 541 541 Interest income (Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities) (1,441 ) — (1,441 ) Income tax (expense) benefit 9,280 (206 ) 9,074 Net other comprehensive income (loss) during period (15,042 ) 335 (14,707 ) Balance September 30, 2016 $ 30,874 $ (32,128 ) $ (1,254 ) Balance July 1, 2015 $ 25,282 $ (22,688 ) $ 2,594 Other comprehensive income before reclassifications 22,907 — 22,907 Amounts reclassified from accumulated other comprehensive income (loss): Investment securities gain, net (2,796 ) — (2,796 ) Personnel expense — 639 639 Income tax expense (7,725 ) (243 ) (7,968 ) Net other comprehensive income during period 12,386 396 12,782 Balance September 30, 2015 $ 37,668 $ (22,292 ) $ 15,376 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | Feb. 17, 2015USD ($) | Mar. 31, 2016USD ($)acquisition | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Common stock issued in acquisition | $ 0 | $ 43,530 | |||
Goodwill acquired during period | $ 3,000 | ||||
Additions to finite-lived intangible assets | $ 1,000 | $ 12,000 | |||
Number of acquisitions | acquisition | 2 | ||||
Ahmann and Martin Company [Member] | |||||
Business Acquisition [Line Items] | |||||
Common stock issued in acquisition | $ 48,000 | ||||
Maximum contingent consideration | $ 8,000 | ||||
Goodwill acquired during period | 40,000 | ||||
Other Intangible Assets [Member] | |||||
Business Acquisition [Line Items] | |||||
Additions to finite-lived intangible assets | $ 1,012 | $ 12,115 |
New Accounting Pronouncements40
New Accounting Pronouncements Adopted (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Other Assets [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (3) |
Long-term Debt [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (3) |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Calculations for basic and diluted earnings per common share | ||||
Net income | $ 53,816 | $ 49,438 | $ 145,441 | $ 145,510 |
Preferred stock dividends | (2,188) | (2,184) | (6,555) | (4,957) |
Net income available to common equity | 51,628 | 47,254 | 138,886 | 140,553 |
Common shareholder dividends | (16,431) | (14,927) | (49,077) | (45,149) |
Unvested share-based payment awards | (177) | (164) | (565) | (450) |
Undistributed earnings | 35,020 | 32,163 | 89,244 | 94,954 |
Undistributed earnings allocated to common shareholders | 34,645 | 31,813 | 88,294 | 93,961 |
Undistributed earnings allocated to unvested share-based payment awards | 375 | 350 | 950 | 993 |
Undistributed earnings | 35,020 | 32,163 | 89,244 | 94,954 |
Basic | ||||
Distributed earnings to common shareholders | 16,431 | 14,927 | 49,077 | 45,149 |
Undistributed earnings allocated to common shareholders | 34,645 | 31,813 | 88,294 | 93,961 |
Total common shareholders earnings, basic | 51,076 | 46,740 | 137,371 | 139,110 |
Diluted | ||||
Distributed earnings to common shareholders | 16,431 | 14,927 | 49,077 | 45,149 |
Undistributed earnings allocated to common shareholders | 34,645 | 31,813 | 88,294 | 93,961 |
Total common shareholders earnings, diluted | $ 51,076 | $ 46,740 | $ 137,371 | $ 139,110 |
Weighted average common shares outstanding (in shares) | 148,708 | 148,614 | 148,607 | 149,524 |
Effect of dilutive common stock awards (in shares) | 1,265 | 1,185 | 1,038 | 1,180 |
Diluted weighted average common shares outstanding (in shares) | 149,973 | 149,799 | 149,645 | 150,704 |
Basic earnings (loss) per common share (in usd per share) | $ 0.34 | $ 0.31 | $ 0.92 | $ 0.93 |
Diluted earnings (loss) per common share (in usd per share) | $ 0.34 | $ 0.31 | $ 0.92 | $ 0.92 |
Earnings Per Share (Textuals) [Abstract] | ||||
Number of antidilutive stock options excluded from the computation of diluted earnings per share (in shares) | 1,000 | 1,000 | 1,000 | 1,000 |
Number of antidilutive warrants excluded from the computation of diluted earnings per share (in shares) | 4,000 | 4,000 | 4,000 | 4,000 |
Stock-Based Compensation, Stock
Stock-Based Compensation, Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair value assumptions of stock options | ||
Dividend yield | 2.50% | 2.00% |
Risk-free interest rate | 2.00% | 2.00% |
Weighted average expected volatility | 25.00% | 20.00% |
Weighted average expected life | 5 years 6 months | 6 years |
Weighted average per share fair value of stock options (in usd per share) | $ 3.36 | $ 3.08 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Stock Options Shares Outstanding, Beginning balance (in shares) | 6,629,143 | 7,847,338 |
Granted (in shares) | 1,302,298 | 1,348,504 |
Exercised (in shares) | (466,779) | (1,351,646) |
Forfeited or expired (in shares) | (181,552) | (1,215,053) |
Stock Options Shares Outstanding, Ending balance (in shares) | 7,283,110 | 6,629,143 |
Options exercisable (in shares) | 4,558,016 | 4,190,245 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Stock Options Outstanding, Weighted Average Exercise Price, Beginning balance (in usd per share) | $ 17.22 | $ 18.34 |
Granted, Weighted Average Exercise Price (in usd per share) | 17.45 | 17.95 |
Exercised, Weighted Average Exercise Price (in usd per share) | 14.15 | 13.90 |
Forfeited or expired, Weighted Average Exercise Price (in usd per share) | 21.61 | 29.13 |
Stock Options Outstanding, Weighted Average Exercise Price, Ending balance (in usd per share) | 17.35 | 17.22 |
Options Exercisable, Weighted Average Exercise Price (in usd per share) | $ 17.31 | $ 17.25 |
Stock Options Outstanding, Weighted Average Remaining Contractual Term | 6 years 2 months 5 days | 6 years 2 months 26 days |
Options exercisable, Weighted Average Remaining Contractual Term | 4 years 9 months 4 days | 4 years 11 months 5 days |
Stock Options Outstanding, Aggregate Intrinsic Value | $ 23,503 | $ 18,730 |
Options exercisable, Aggregate Intrinsic Value | $ 17,635 | $ 14,873 |
Stock-Based Compensation, Restr
Stock-Based Compensation, Restricted Stock Activity (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding Shares, Beginning balance (in shares) | 2,250,028 | 1,982,126 |
Granted (in shares) | 1,073,057 | 1,173,847 |
Vested (in shares) | (831,433) | (709,582) |
Forfeited (in shares) | (94,725) | (196,363) |
Outstanding Shares, Ending balance (in shares) | 2,396,927 | 2,250,028 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding, Weighted Average Grant Date Fair Value, Beginning balance (in usd per share) | $ 17.03 | $ 15.79 |
Granted, Weighted Average Grant Date Fair Value (in usd per share) | 17.48 | 18.09 |
Vested, Weighted Average Grant Date Fair Value (in usd per share) | 16.61 | 15.62 |
Forfeited, Weighted Average Grant Date Fair Value (in usd per share) | 17.60 | 16.87 |
Outstanding Weighted Average Grant Date Fair Value, Ending balance (in usd per share) | $ 17.35 | $ 17.03 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textuals) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested share-based payment awards | $ 6,000 | |
Stock Based Compensation (Textuals) [Abstract] | ||
Intrinsic value of stock options exercised | 2,000 | $ 7,000 |
Total fair value of vested stock options | $ 3,000 | $ 6,000 |
Service-based Restricted Stock Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | 4 years |
Performance-based Restricted Stock Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Recognized compensation expense for accelerated vesting of stock options | $ 923 | |
Recognized compensation expense for vesting of stock options | $ 3,000 | $ 4,000 |
Total compensation cost not yet recognized, period for recognition | fourth quarter 2019 | |
Restricted Stock Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Recognized compensation expense for accelerated vesting of stock options | $ 3,000 | |
Recognized compensation expense for vesting of stock options | 15,000 | $ 15,000 |
Unvested share-based payment awards | $ 24,000 | |
Total compensation cost not yet recognized, period for recognition | fourth quarter 2019 | |
2013 Incentive Compensation Plan [Member] | Employee Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration term of awards | 10 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |
2013 Incentive Compensation Plan [Member] | Service-based Restricted Stock Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Term of transfer restrictions | 4 years | |
2013 Incentive Compensation Plan [Member] | Performance-based Restricted Stock Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Term of transfer restrictions | 3 years |
Investment Securities, AFS and
Investment Securities, AFS and HTM Securities Amortized Costs and Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Investment securities available for sale: | ||
Amortized Cost | $ 4,809,893 | $ 4,984,867 |
Gross Unrealized Gains | 48,454 | 35,684 |
Gross Unrealized Losses | (12,259) | (53,137) |
Fair Value | 4,846,088 | 4,967,414 |
Investment securities held to maturity: | ||
Amortized Cost | 1,253,494 | 1,168,230 |
Gross Unrealized Gains | 34,609 | 17,505 |
Gross Unrealized Losses | (273) | (1,293) |
Fair Value | 1,287,830 | 1,184,442 |
U.S. Treasury securities | ||
Investment securities available for sale: | ||
Amortized Cost | 1,000 | 999 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | (2) |
Fair Value | 1,001 | 997 |
Obligations of state and political subdivisions (municipal securities) [Member] | ||
Investment securities held to maturity: | ||
Amortized Cost | 1,129,056 | 1,043,767 |
Gross Unrealized Gains | 31,897 | 16,803 |
Gross Unrealized Losses | (233) | (339) |
Fair Value | 1,160,720 | 1,060,231 |
Private-label | ||
Investment securities available for sale: | ||
Amortized Cost | 1,215 | 1,722 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (15) | (14) |
Fair Value | 1,200 | 1,709 |
Investment securities held to maturity: | ||
Amortized Cost | 0 | |
Fair Value | 0 | |
GNMA Commercial Mortgage-Related Securities [Member] | ||
Investment securities available for sale: | ||
Amortized Cost | 2,121,913 | 1,982,477 |
Gross Unrealized Gains | 4,218 | 1,334 |
Gross Unrealized Losses | (11,462) | (28,501) |
Fair Value | 2,114,669 | 1,955,310 |
Investment securities held to maturity: | ||
Amortized Cost | 0 | |
Fair Value | 0 | |
Other Debt And Other Equity Securities [Member] | ||
Investment securities available for sale: | ||
Amortized Cost | 4,718 | 4,718 |
Gross Unrealized Gains | 111 | 51 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 4,829 | 4,769 |
FNMA and FHLMC [Member] | Residential Related Securities [Member] | ||
Investment securities available for sale: | ||
Amortized Cost | 882,951 | 1,388,995 |
Gross Unrealized Gains | 29,941 | 33,791 |
Gross Unrealized Losses | (32) | (8,160) |
Fair Value | 912,860 | 1,414,626 |
Investment securities held to maturity: | ||
Amortized Cost | 38,297 | 41,469 |
Gross Unrealized Gains | 1,009 | 513 |
Gross Unrealized Losses | (16) | (645) |
Fair Value | 39,290 | 41,337 |
GNMA [Member] | Residential Related Securities [Member] | ||
Investment securities available for sale: | ||
Amortized Cost | 1,798,096 | 1,605,956 |
Gross Unrealized Gains | 14,183 | 507 |
Gross Unrealized Losses | (750) | (16,460) |
Fair Value | 1,811,529 | 1,590,003 |
Investment securities held to maturity: | ||
Amortized Cost | 86,141 | 82,994 |
Gross Unrealized Gains | 1,703 | 189 |
Gross Unrealized Losses | (24) | (309) |
Fair Value | $ 87,820 | $ 82,874 |
Investment Securities, AFS an46
Investment Securities, AFS and HTM Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Amortized Cost | ||
Available for Sale, Due in one year or less | $ 4,500 | |
Available for Sale, Due after one year through five years | 1,200 | |
Available for Sale, Due after five years through ten years | 0 | |
Available for Sale, Due after ten years | 0 | |
Available for Sale, Total debt securities | 5,700 | |
Investment securities available for sale, amortized cost | 4,809,893 | $ 4,984,867 |
Fair Value | ||
Available for Sale, Due in one year or less | 4,535 | |
Available for Sale, Due after one year through five years | 1,200 | |
Available for Sale, Due after five years through ten years | 0 | |
Available for Sale, Due after ten years | 0 | |
Available for Sale, Total debt securities | 5,735 | |
Investment securities available for sale, at fair value | $ 4,846,088 | 4,967,414 |
Ratio of Fair Value to Amortized Cost | 100.80% | |
Amortized Cost | ||
Held to Maturity, Due in one year or less | $ 38,786 | |
Held to Maturity, Due after one year through five years | 250,221 | |
Held to Maturity, Due after five years through ten years | 234,104 | |
Held to Maturity, Due after ten years | 605,945 | |
Held to Maturity, Debt Securities, Amortized Cost Basis | 1,129,056 | |
Held to Maturity Amortized Cost | 1,253,494 | 1,168,230 |
Fair Value | ||
Held to Maturity, Due in one year or less | 27,004 | |
Held to Maturity, Due after one year through five years | 260,817 | |
Held to Maturity, Due after five years through ten years | 243,746 | |
Held to Maturity, Due after ten years | 629,153 | |
Held to Maturity, Securities, Debt Securities | 1,160,720 | |
Held to Maturity, Total debt securities | $ 1,287,830 | 1,184,442 |
Ratio of Fair Value to Amortized Cost | 102.70% | |
Private-label | ||
Amortized Cost | ||
Investment securities available for sale, amortized cost | $ 1,215 | 1,722 |
Fair Value | ||
Investment securities available for sale, at fair value | 1,200 | 1,709 |
Amortized Cost | ||
Held to Maturity Amortized Cost | 0 | |
Fair Value | ||
Held to Maturity, Total debt securities | 0 | |
GNMA Commercial Mortgage-Related Securities [Member] | ||
Amortized Cost | ||
Investment securities available for sale, amortized cost | 2,121,913 | 1,982,477 |
Fair Value | ||
Investment securities available for sale, at fair value | 2,114,669 | 1,955,310 |
Amortized Cost | ||
Held to Maturity Amortized Cost | 0 | |
Fair Value | ||
Held to Maturity, Total debt securities | 0 | |
Equity Securities [Member] | ||
Amortized Cost | ||
Investment securities available for sale, amortized cost | 18 | |
Fair Value | ||
Investment securities available for sale, at fair value | 95 | |
Amortized Cost | ||
Held to Maturity Amortized Cost | 0 | |
Fair Value | ||
Held to Maturity, Total debt securities | 0 | |
FNMA and FHLMC [Member] | Residential Related Securities [Member] | ||
Amortized Cost | ||
Investment securities available for sale, amortized cost | 882,951 | 1,388,995 |
Fair Value | ||
Investment securities available for sale, at fair value | 912,860 | 1,414,626 |
Amortized Cost | ||
Held to Maturity Amortized Cost | 38,297 | 41,469 |
Fair Value | ||
Held to Maturity, Total debt securities | 39,290 | 41,337 |
GNMA [Member] | Residential Related Securities [Member] | ||
Amortized Cost | ||
Investment securities available for sale, amortized cost | 1,798,096 | 1,605,956 |
Fair Value | ||
Investment securities available for sale, at fair value | 1,811,529 | 1,590,003 |
Amortized Cost | ||
Held to Maturity Amortized Cost | 86,141 | 82,994 |
Fair Value | ||
Held to Maturity, Total debt securities | $ 87,820 | $ 82,874 |
Investment Securities, Gains, L
Investment Securities, Gains, Losses, and Proceeds (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ||
Gross gains | $ 6,403 | $ 8,047 |
Gross losses | (202) | (4,009) |
Total investment securities gains, net | 6,201 | 4,038 |
Proceeds from sales of securities | $ 359,591 | 1,066,957 |
Proceeds from sales of securities | $ 1,206,242 |
Investment Securities, AFS an48
Investment Securities, AFS and HTM Securities Gross Unrealized Losses (Details) $ in Thousands | Sep. 30, 2016USD ($)security | Dec. 31, 2015USD ($)security |
Unrealized losses and fair value of available for sale securities , by investment category and time length | ||
Unrealized losses on available for sale securities, less than 12 months | $ (2,817) | $ (27,621) |
Unrealized losses on available for sale securities, 12 months or more | (9,442) | (25,516) |
Total unrealized losses on available for sale securities | (12,259) | (53,137) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 1,123,506 | 2,789,260 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 468,095 | 787,969 |
Total fair value of unrealized losses on available for sale securities | $ 1,591,601 | $ 3,577,229 |
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 51 | 105 |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 22 | 38 |
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Unrealized losses on held to maturity securities, less than 12 months | $ (256) | $ (524) |
Unrealized losses on held to maturity securities, 12 months or more | (17) | (769) |
Total unrealized losses on held to maturity securities | $ (273) | $ (1,293) |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, 12 Months or Longer | security | 5 | 30 |
Fair value of unrealized losses on held to maturity securities, less than 12 months | $ 44,742 | $ 81,390 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 8,676 | 27,157 |
Total fair value of unrealized losses on held to maturity securities | $ 53,418 | $ 108,547 |
Held To Maturity Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Less Than One Year [Member] | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Held-to-maturity, Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions, less than 12 Months | security | 43 | 84 |
U.S. Treasury securities | ||
Unrealized losses and fair value of available for sale securities , by investment category and time length | ||
Unrealized losses on available for sale securities, less than 12 months | $ (2) | |
Unrealized losses on available for sale securities, 12 months or more | 0 | |
Total unrealized losses on available for sale securities | (2) | |
Fair value of unrealized losses on available for sale securities, less than 12 months | 997 | |
Fair value of unrealized losses on available for sale securities, 12 months or more | 0 | |
Total fair value of unrealized losses on available for sale securities | $ 997 | |
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 1 | |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 0 | |
Private-label | ||
Unrealized losses and fair value of available for sale securities , by investment category and time length | ||
Unrealized losses on available for sale securities, less than 12 months | $ 0 | $ (1) |
Unrealized losses on available for sale securities, 12 months or more | (15) | (13) |
Total unrealized losses on available for sale securities | (15) | (14) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 0 | 83 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 1,197 | 1,565 |
Total fair value of unrealized losses on available for sale securities | $ 1,197 | $ 1,648 |
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 0 | 1 |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 1 | 3 |
GNMA Commercial Mortgage-Related Securities [Member] | ||
Unrealized losses and fair value of available for sale securities , by investment category and time length | ||
Unrealized losses on available for sale securities, less than 12 months | $ (2,035) | $ (9,610) |
Unrealized losses on available for sale securities, 12 months or more | (9,427) | (18,891) |
Total unrealized losses on available for sale securities | (11,462) | (28,501) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 828,434 | 1,132,844 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 466,898 | 448,218 |
Total fair value of unrealized losses on available for sale securities | $ 1,295,332 | $ 1,581,062 |
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 40 | 40 |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 21 | 21 |
Obligations of state and political subdivisions (municipal securities) [Member] | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Unrealized losses on held to maturity securities, less than 12 months | $ (224) | $ (146) |
Unrealized losses on held to maturity securities, 12 months or more | (9) | (193) |
Total unrealized losses on held to maturity securities | (233) | (339) |
Fair value of unrealized losses on held to maturity securities, less than 12 months | 37,317 | 23,137 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 1,842 | 9,254 |
Total fair value of unrealized losses on held to maturity securities | $ 39,159 | $ 32,391 |
Obligations of state and political subdivisions (municipal securities) [Member] | Held To Maturity Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Less Than One Year [Member] | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 37 | 53 |
Obligations of state and political subdivisions (municipal securities) [Member] | Held To Maturity Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Greater Than Or Equal To One Year [Member] | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 4 | 24 |
FNMA and FHLMC [Member] | Residential Related Securities [Member] | ||
Unrealized losses and fair value of available for sale securities , by investment category and time length | ||
Unrealized losses on available for sale securities, less than 12 months | $ (32) | $ (1,548) |
Unrealized losses on available for sale securities, 12 months or more | 0 | (6,612) |
Total unrealized losses on available for sale securities | (32) | (8,160) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 14,694 | 220,852 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 0 | 338,186 |
Total fair value of unrealized losses on available for sale securities | $ 14,694 | $ 559,038 |
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 3 | 17 |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 0 | 14 |
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Unrealized losses on held to maturity securities, less than 12 months | $ (8) | $ (177) |
Unrealized losses on held to maturity securities, 12 months or more | (8) | (468) |
Total unrealized losses on held to maturity securities | (16) | (645) |
Fair value of unrealized losses on held to maturity securities, less than 12 months | 1,108 | 12,754 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 6,834 | 11,106 |
Total fair value of unrealized losses on held to maturity securities | $ 7,942 | $ 23,860 |
FNMA and FHLMC [Member] | Residential Related Securities [Member] | Held To Maturity Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Less Than One Year [Member] | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 1 | 10 |
FNMA and FHLMC [Member] | Residential Related Securities [Member] | Held To Maturity Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Greater Than Or Equal To One Year [Member] | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 1 | 3 |
GNMA [Member] | Residential Related Securities [Member] | ||
Unrealized losses and fair value of available for sale securities , by investment category and time length | ||
Unrealized losses on available for sale securities, less than 12 months | $ (750) | $ (16,460) |
Unrealized losses on available for sale securities, 12 months or more | 0 | 0 |
Total unrealized losses on available for sale securities | (750) | (16,460) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 280,378 | 1,434,484 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 0 | 0 |
Total fair value of unrealized losses on available for sale securities | $ 280,378 | $ 1,434,484 |
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 8 | 46 |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 0 | 0 |
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Unrealized losses on held to maturity securities, less than 12 months | $ (24) | $ (201) |
Unrealized losses on held to maturity securities, 12 months or more | 0 | (108) |
Total unrealized losses on held to maturity securities | (24) | (309) |
Fair value of unrealized losses on held to maturity securities, less than 12 months | 6,317 | 45,499 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 0 | 6,797 |
Total fair value of unrealized losses on held to maturity securities | $ 6,317 | $ 52,296 |
GNMA [Member] | Residential Related Securities [Member] | Held To Maturity Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Less Than One Year [Member] | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 5 | 21 |
GNMA [Member] | Residential Related Securities [Member] | Held To Maturity Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Greater Than Or Equal To One Year [Member] | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 0 | 3 |
Investment Securities (Details
Investment Securities (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from sales of securities | $ 359,591 | $ 1,066,957 | |
Marketable Securities, Gain (Loss) | 6,201 | $ 4,038 | |
Investment Securities (Textuals) [Abstract] | |||
Securities pledged as collateral | 2,600,000 | $ 3,200,000 | |
Federal Home Loan Bank Stock | 65,000 | 74,000 | |
Federal Reserve Bank Stock | $ 75,000 | $ 73,000 |
Loans, Loan Composition (Detail
Loans, Loan Composition (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 19,844,005 | $ 18,714,343 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 6,721,557 | 6,190,683 |
Commercial real estate — owner occupied | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 892,678 | 918,212 |
Commercial and business lending | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 7,614,235 | 7,108,895 |
Commercial real estate — investor | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 3,530,370 | 3,234,266 |
Real estate construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 1,314,431 | 1,162,145 |
Commercial real estate lending | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 4,844,801 | 4,396,411 |
Total commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 12,459,036 | 11,505,306 |
Residential mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 6,034,166 | 5,783,267 |
Home equity | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 951,594 | 1,005,802 |
Other consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 399,209 | 419,968 |
Total consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 7,384,969 | $ 7,209,037 |
Loans Loans, Loans by Credit Qu
Loans Loans, Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 19,844,005 | $ 18,714,343 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 18,867,996 | 17,804,216 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 245,423 | 430,152 |
Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 440,675 | 301,717 |
Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 289,911 | 178,258 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 6,721,557 | 6,190,683 |
Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 5,983,940 | 5,522,809 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 180,425 | 341,169 |
Commercial and industrial | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 351,290 | 233,130 |
Commercial and industrial | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 205,902 | 93,575 |
Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 892,678 | 918,212 |
Commercial real estate — owner occupied | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 791,951 | 835,572 |
Commercial real estate — owner occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 46,345 | 38,885 |
Commercial real estate — owner occupied | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 47,387 | 35,706 |
Commercial real estate — owner occupied | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 6,995 | 8,049 |
Commercial and business lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 7,614,235 | 7,108,895 |
Commercial and business lending | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 6,775,891 | 6,358,381 |
Commercial and business lending | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 226,770 | 380,054 |
Commercial and business lending | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 398,677 | 268,836 |
Commercial and business lending | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 212,897 | 101,624 |
Commercial real estate — investor | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 3,530,370 | 3,234,266 |
Commercial real estate — investor | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 3,480,535 | 3,153,703 |
Commercial real estate — investor | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 5,042 | 45,976 |
Commercial real estate — investor | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 36,765 | 25,944 |
Commercial real estate — investor | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 8,028 | 8,643 |
Real estate construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 1,314,431 | 1,162,145 |
Real estate construction | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 1,303,013 | 1,157,034 |
Real estate construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 8,625 | 252 |
Real estate construction | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 1,929 | 3,919 |
Real estate construction | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 864 | 940 |
Commercial real estate lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 4,844,801 | 4,396,411 |
Commercial real estate lending | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 4,783,548 | 4,310,737 |
Commercial real estate lending | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 13,667 | 46,228 |
Commercial real estate lending | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 38,694 | 29,863 |
Commercial real estate lending | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 8,892 | 9,583 |
Total commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 12,459,036 | 11,505,306 |
Total commercial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 11,559,439 | 10,669,118 |
Total commercial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 240,437 | 426,282 |
Total commercial | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 437,371 | 298,699 |
Total commercial | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 221,789 | 111,207 |
Residential mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 6,034,166 | 5,783,267 |
Residential mortgage | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 5,973,633 | 5,727,437 |
Residential mortgage | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 3,832 | 1,552 |
Residential mortgage | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 3,226 | 2,796 |
Residential mortgage | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 53,475 | 51,482 |
Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 951,594 | 1,005,802 |
Home equity | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 936,443 | 988,574 |
Home equity | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 726 | 1,762 |
Home equity | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 78 | 222 |
Home equity | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 14,347 | 15,244 |
Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 399,209 | 419,968 |
Other consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 398,481 | 419,087 |
Other consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 428 | 556 |
Other consumer | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 0 | 0 |
Other consumer | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 300 | 325 |
Total consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 7,384,969 | 7,209,037 |
Total consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 7,308,557 | 7,135,098 |
Total consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 4,986 | 3,870 |
Total consumer | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 3,304 | 3,018 |
Total consumer | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 68,122 | $ 67,051 |
Loans, Loans by Past Due Status
Loans, Loans by Past Due Status (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Summarized details of Loans | ||
Current | $ 19,535,516 | $ 18,510,978 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 289,911 | 178,258 |
Total loans | 19,844,005 | 18,714,343 |
Accruing loans past due 90 days or more | 2,000 | 2,000 |
Nonaccrual Loans, Current Portion | $ 215,000 | $ 124,000 |
Percent of current nonaccrual loans | 74.00% | 69.00% |
30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | $ 14,217 | $ 20,181 |
60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 2,850 | 3,278 |
90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,511 | 1,648 |
Commercial and industrial | ||
Summarized details of Loans | ||
Current | 6,514,451 | 6,095,848 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 205,902 | 93,575 |
Total loans | 6,721,557 | 6,190,683 |
Commercial and industrial | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 576 | 602 |
Commercial and industrial | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 374 | 409 |
Commercial and industrial | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 254 | 249 |
Commercial real estate — owner occupied | ||
Summarized details of Loans | ||
Current | 884,814 | 903,021 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 6,995 | 8,049 |
Total loans | 892,678 | 918,212 |
Commercial real estate — owner occupied | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 754 | 7,142 |
Commercial real estate — owner occupied | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 115 | 0 |
Commercial real estate — owner occupied | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 0 | 0 |
Commercial and business lending | ||
Summarized details of Loans | ||
Current | 7,399,265 | 6,998,869 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 212,897 | 101,624 |
Total loans | 7,614,235 | 7,108,895 |
Commercial and business lending | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,330 | 7,744 |
Commercial and business lending | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 489 | 409 |
Commercial and business lending | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 254 | 249 |
Commercial real estate — investor | ||
Summarized details of Loans | ||
Current | 3,521,712 | 3,225,332 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 8,028 | 8,643 |
Total loans | 3,530,370 | 3,234,266 |
Commercial real estate — investor | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 17 | 291 |
Commercial real estate — investor | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 613 | 0 |
Commercial real estate — investor | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 0 | 0 |
Real estate construction | ||
Summarized details of Loans | ||
Current | 1,313,165 | 1,160,909 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 864 | 940 |
Total loans | 1,314,431 | 1,162,145 |
Real estate construction | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 337 | 270 |
Real estate construction | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 65 | 26 |
Real estate construction | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 0 | 0 |
Commercial real estate lending | ||
Summarized details of Loans | ||
Current | 4,834,877 | 4,386,241 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 8,892 | 9,583 |
Total loans | 4,844,801 | 4,396,411 |
Commercial real estate lending | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 354 | 561 |
Commercial real estate lending | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 678 | 26 |
Commercial real estate lending | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 0 | 0 |
Total commercial | ||
Summarized details of Loans | ||
Current | 12,234,142 | 11,385,110 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 221,789 | 111,207 |
Total loans | 12,459,036 | 11,505,306 |
Total commercial | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,684 | 8,305 |
Total commercial | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,167 | 435 |
Total commercial | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 254 | 249 |
Residential mortgage | ||
Summarized details of Loans | ||
Current | 5,973,994 | 5,726,855 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 53,475 | 51,482 |
Total loans | 6,034,166 | 5,783,267 |
Residential mortgage | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 6,407 | 4,491 |
Residential mortgage | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 290 | 439 |
Residential mortgage | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 0 | 0 |
Home equity | ||
Summarized details of Loans | ||
Current | 931,774 | 982,639 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 14,347 | 15,244 |
Total loans | 951,594 | 1,005,802 |
Home equity | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 4,627 | 6,190 |
Home equity | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 846 | 1,729 |
Home equity | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 0 | 0 |
Other consumer | ||
Summarized details of Loans | ||
Current | 395,606 | 416,374 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 300 | 325 |
Total loans | 399,209 | 419,968 |
Other consumer | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,499 | 1,195 |
Other consumer | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 547 | 675 |
Other consumer | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,257 | 1,399 |
Total consumer | ||
Summarized details of Loans | ||
Current | 7,301,374 | 7,125,868 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 68,122 | 67,051 |
Total loans | 7,384,969 | 7,209,037 |
Total consumer | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 12,533 | 11,876 |
Total consumer | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,683 | 2,843 |
Total consumer | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | $ 1,257 | $ 1,399 |
Loans, Impaired Loans Recorded
Loans, Impaired Loans Recorded Investment, Unpaid Principal Balance, Related Allowance, Average Recorded Investment, and Interest Income Recognized (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | $ 369,981 | $ 265,621 |
Unpaid Principal Balance | 431,712 | 284,433 |
Related Allowance | 33,150 | 33,669 |
Average Recorded Investment | 383,840 | 273,011 |
Interest Income Recognized | $ 6,945 | $ 8,716 |
Net Recorded Investment of the Impaired Loans | 78.00% | 82.00% |
Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | $ 176,312 | $ 186,275 |
Unpaid Principal Balance | 190,587 | 197,109 |
Related Allowance | 33,150 | 33,669 |
Average Recorded Investment | 183,988 | 178,871 |
Interest Income Recognized | 5,562 | 6,798 |
Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 193,669 | 79,346 |
Unpaid Principal Balance | 241,125 | 87,324 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 199,852 | 94,140 |
Interest Income Recognized | 1,383 | 1,918 |
Commercial and industrial | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 236,150 | 122,868 |
Unpaid Principal Balance | 286,799 | 131,668 |
Related Allowance | 9,293 | 8,162 |
Average Recorded Investment | 241,033 | 126,406 |
Interest Income Recognized | 2,455 | 2,512 |
Commercial and industrial | Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 61,219 | 57,785 |
Unpaid Principal Balance | 65,586 | 59,409 |
Related Allowance | 9,293 | 8,162 |
Average Recorded Investment | 61,337 | 46,833 |
Interest Income Recognized | 1,228 | 855 |
Commercial and industrial | Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 174,931 | 65,083 |
Unpaid Principal Balance | 221,213 | 72,259 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 179,696 | 79,573 |
Interest Income Recognized | 1,227 | 1,657 |
Commercial real estate — owner occupied | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 14,440 | 15,926 |
Unpaid Principal Balance | 17,113 | 16,452 |
Related Allowance | 319 | 448 |
Average Recorded Investment | 15,039 | 16,621 |
Interest Income Recognized | 262 | 427 |
Commercial real estate — owner occupied | Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 8,721 | 9,705 |
Unpaid Principal Balance | 10,641 | 9,804 |
Related Allowance | 319 | 448 |
Average Recorded Investment | 9,133 | 10,087 |
Interest Income Recognized | 262 | 412 |
Commercial real estate — owner occupied | Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 5,719 | 6,221 |
Unpaid Principal Balance | 6,472 | 6,648 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 5,906 | 6,534 |
Interest Income Recognized | 0 | 15 |
Commercial and business lending | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 250,590 | 138,794 |
Unpaid Principal Balance | 303,912 | 148,120 |
Related Allowance | 9,612 | 8,610 |
Average Recorded Investment | 256,072 | 143,027 |
Interest Income Recognized | 2,717 | 2,939 |
Commercial and business lending | Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 69,940 | 67,490 |
Unpaid Principal Balance | 76,227 | 69,213 |
Related Allowance | 9,612 | 8,610 |
Average Recorded Investment | 70,470 | 56,920 |
Interest Income Recognized | 1,490 | 1,267 |
Commercial and business lending | Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 180,650 | 71,304 |
Unpaid Principal Balance | 227,685 | 78,907 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 185,602 | 86,107 |
Interest Income Recognized | 1,227 | 1,672 |
Commercial real estate — investor | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 23,380 | 30,558 |
Unpaid Principal Balance | 24,102 | 32,284 |
Related Allowance | 629 | 1,831 |
Average Recorded Investment | 28,843 | 31,041 |
Interest Income Recognized | 1,405 | 2,004 |
Commercial real estate — investor | Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 17,154 | 27,822 |
Unpaid Principal Balance | 17,601 | 29,444 |
Related Allowance | 629 | 1,831 |
Average Recorded Investment | 21,450 | 28,278 |
Interest Income Recognized | 1,405 | 1,914 |
Commercial real estate — investor | Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 6,226 | 2,736 |
Unpaid Principal Balance | 6,501 | 2,840 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 7,393 | 2,763 |
Interest Income Recognized | 0 | 90 |
Real estate construction | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 1,229 | 1,450 |
Unpaid Principal Balance | 1,626 | 2,154 |
Related Allowance | 449 | 453 |
Average Recorded Investment | 1,301 | 1,667 |
Interest Income Recognized | 49 | 66 |
Real estate construction | Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 1,229 | 1,450 |
Unpaid Principal Balance | 1,626 | 2,154 |
Related Allowance | 449 | 453 |
Average Recorded Investment | 1,301 | 1,667 |
Interest Income Recognized | 49 | 66 |
Real estate construction | Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Commercial real estate lending | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 24,609 | 32,008 |
Unpaid Principal Balance | 25,728 | 34,438 |
Related Allowance | 1,078 | 2,284 |
Average Recorded Investment | 30,144 | 32,708 |
Interest Income Recognized | 1,454 | 2,070 |
Commercial real estate lending | Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 18,383 | 29,272 |
Unpaid Principal Balance | 19,227 | 31,598 |
Related Allowance | 1,078 | 2,284 |
Average Recorded Investment | 22,751 | 29,945 |
Interest Income Recognized | 1,454 | 1,980 |
Commercial real estate lending | Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 6,226 | 2,736 |
Unpaid Principal Balance | 6,501 | 2,840 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 7,393 | 2,763 |
Interest Income Recognized | 0 | 90 |
Total commercial | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 275,199 | 170,802 |
Unpaid Principal Balance | 329,640 | 182,558 |
Related Allowance | 10,690 | 10,894 |
Average Recorded Investment | 286,216 | 175,735 |
Interest Income Recognized | 4,171 | 5,009 |
Total commercial | Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 88,323 | 96,762 |
Unpaid Principal Balance | 95,454 | 100,811 |
Related Allowance | 10,690 | 10,894 |
Average Recorded Investment | 93,221 | 86,865 |
Interest Income Recognized | 2,944 | 3,247 |
Total commercial | Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 186,876 | 74,040 |
Unpaid Principal Balance | 234,186 | 81,747 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 192,995 | 88,870 |
Interest Income Recognized | 1,227 | 1,762 |
Residential mortgage | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 71,524 | 71,352 |
Unpaid Principal Balance | 76,857 | 76,117 |
Related Allowance | 12,087 | 12,462 |
Average Recorded Investment | 73,051 | 72,909 |
Interest Income Recognized | 1,867 | 2,500 |
Residential mortgage | Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 65,381 | 66,590 |
Unpaid Principal Balance | 70,568 | 71,084 |
Related Allowance | 12,087 | 12,462 |
Average Recorded Investment | 66,845 | 68,183 |
Interest Income Recognized | 1,734 | 2,374 |
Residential mortgage | Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 6,143 | 4,762 |
Unpaid Principal Balance | 6,289 | 5,033 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 6,206 | 4,726 |
Interest Income Recognized | 133 | 126 |
Home equity | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 22,032 | 22,313 |
Unpaid Principal Balance | 23,927 | 24,533 |
Related Allowance | 10,162 | 10,118 |
Average Recorded Investment | 23,305 | 23,168 |
Interest Income Recognized | 885 | 1,177 |
Home equity | Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 21,382 | 21,769 |
Unpaid Principal Balance | 23,277 | 23,989 |
Related Allowance | 10,162 | 10,118 |
Average Recorded Investment | 22,654 | 22,624 |
Interest Income Recognized | 862 | 1,147 |
Home equity | Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 650 | 544 |
Unpaid Principal Balance | 650 | 544 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 651 | 544 |
Interest Income Recognized | 23 | 30 |
Other consumer | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 1,226 | 1,154 |
Unpaid Principal Balance | 1,288 | 1,225 |
Related Allowance | 211 | 195 |
Average Recorded Investment | 1,268 | 1,199 |
Interest Income Recognized | 22 | 30 |
Other consumer | Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 1,226 | 1,154 |
Unpaid Principal Balance | 1,288 | 1,225 |
Related Allowance | 211 | 195 |
Average Recorded Investment | 1,268 | 1,199 |
Interest Income Recognized | 22 | 30 |
Other consumer | Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Total consumer | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 94,782 | 94,819 |
Unpaid Principal Balance | 102,072 | 101,875 |
Related Allowance | 22,460 | 22,775 |
Average Recorded Investment | 97,624 | 97,276 |
Interest Income Recognized | 2,774 | 3,707 |
Total consumer | Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 87,989 | 89,513 |
Unpaid Principal Balance | 95,133 | 96,298 |
Related Allowance | 22,460 | 22,775 |
Average Recorded Investment | 90,767 | 92,006 |
Interest Income Recognized | 2,618 | 3,551 |
Total consumer | Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 6,793 | 5,306 |
Unpaid Principal Balance | 6,939 | 5,577 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 6,857 | 5,270 |
Interest Income Recognized | $ 156 | $ 156 |
Loans, Troubled Debt Restructur
Loans, Troubled Debt Restructurings Performing and Nonaccrual (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | $ 80,070 | $ 87,363 |
Nonaccrual Restructured Loans | 31,758 | 37,684 |
Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 30,248 | 29,293 |
Nonaccrual Restructured Loans | 2,398 | 1,714 |
Commercial real estate — owner occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 7,445 | 7,877 |
Nonaccrual Restructured Loans | 2,275 | 2,703 |
Commercial real estate — investor | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 15,352 | 21,915 |
Nonaccrual Restructured Loans | 941 | 3,936 |
Real estate construction | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 365 | 510 |
Nonaccrual Restructured Loans | 154 | 177 |
Residential mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 18,049 | 19,870 |
Nonaccrual Restructured Loans | 22,743 | 24,592 |
Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 7,685 | 7,069 |
Nonaccrual Restructured Loans | 3,209 | 4,522 |
Other consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 926 | 829 |
Nonaccrual Restructured Loans | $ 38 | $ 40 |
Loans, Loans Modified in a Trou
Loans, Loans Modified in a Troubled Debt Restructuring (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($)loan | Sep. 30, 2015USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 116 | 156 |
Recorded Investment | $ 9,038 | $ 17,713 |
Unpaid Principal Balance | $ 9,463 | $ 18,849 |
Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 10 | 10 |
Recorded Investment | $ 2,455 | $ 2,410 |
Unpaid Principal Balance | $ 2,517 | $ 3,033 |
Commercial real estate — owner occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 4 |
Recorded Investment | $ 117 | $ 2,847 |
Unpaid Principal Balance | $ 124 | $ 3,007 |
Commercial real estate — investor | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 3 |
Recorded Investment | $ 0 | $ 2,949 |
Unpaid Principal Balance | $ 0 | $ 2,998 |
Real estate construction | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Recorded Investment | $ 66 | $ 5 |
Unpaid Principal Balance | $ 91 | $ 5 |
Residential mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 56 | 77 |
Recorded Investment | $ 4,676 | $ 7,393 |
Unpaid Principal Balance | $ 4,922 | $ 7,586 |
Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 47 | 61 |
Recorded Investment | $ 1,709 | $ 2,109 |
Unpaid Principal Balance | $ 1,793 | $ 2,220 |
Other consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 0 |
Recorded Investment | $ 15 | $ 0 |
Unpaid Principal Balance | $ 16 | $ 0 |
Loans, Troubled Debt Restruct56
Loans, Troubled Debt Restructurings Subsequent Default (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($)loan | Sep. 30, 2015USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 49 | 68 |
Recorded Investment | $ | $ 3,507 | $ 5,253 |
Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 153 |
Commercial real estate — owner occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 297 |
Residential mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 36 | 45 |
Recorded Investment | $ | $ 3,310 | $ 4,176 |
Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 12 | 21 |
Recorded Investment | $ | $ 182 | $ 627 |
Other consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 0 |
Recorded Investment | $ | $ 15 | $ 0 |
Loans, Changes in the Allowance
Loans, Changes in the Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | $ 274,264 | $ 266,302 |
Charge offs | (74,830) | (52,280) |
Recoveries | 19,106 | 22,242 |
Net charge offs | (55,724) | (30,038) |
Provision for loan losses | 51,000 | 38,000 |
Balance at end of period | 269,540 | 274,264 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 9,625 | 7,963 |
Collectively evaluated for impairment | 259,915 | 266,301 |
Balance at end of period | 269,540 | 274,264 |
Loans: | ||
Individually evaluated for impairment | 226,615 | 111,487 |
Collectively evaluated for impairment | 19,617,390 | 18,602,856 |
Total loans | 19,844,005 | 18,714,343 |
Commercial and industrial | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 129,959 | 117,635 |
Charge offs | (63,368) | (27,687) |
Recoveries | 13,461 | 9,821 |
Net charge offs | (49,907) | (17,866) |
Provision for loan losses | 57,051 | 30,190 |
Balance at end of period | 137,103 | 129,959 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 8,570 | 7,522 |
Collectively evaluated for impairment | 128,533 | 122,437 |
Balance at end of period | 137,103 | 129,959 |
Loans: | ||
Individually evaluated for impairment | 203,834 | 91,569 |
Collectively evaluated for impairment | 6,517,723 | 6,099,114 |
Total loans | 6,721,557 | 6,190,683 |
Commercial real estate — owner occupied | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 18,680 | 16,510 |
Charge offs | (265) | (2,645) |
Recoveries | 48 | 921 |
Net charge offs | (217) | (1,724) |
Provision for loan losses | (4,106) | 3,894 |
Balance at end of period | 14,357 | 18,680 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 14,357 | 18,680 |
Balance at end of period | 14,357 | 18,680 |
Loans: | ||
Individually evaluated for impairment | 5,719 | 6,221 |
Collectively evaluated for impairment | 886,959 | 911,991 |
Total loans | 892,678 | 918,212 |
Commercial real estate — investor | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 43,018 | 46,333 |
Charge offs | (1,495) | (4,645) |
Recoveries | 1,610 | 4,157 |
Net charge offs | 115 | (488) |
Provision for loan losses | (2,366) | (2,827) |
Balance at end of period | 40,767 | 43,018 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 79 | 229 |
Collectively evaluated for impairment | 40,688 | 42,789 |
Balance at end of period | 40,767 | 43,018 |
Loans: | ||
Individually evaluated for impairment | 7,023 | 5,460 |
Collectively evaluated for impairment | 3,523,347 | 3,228,806 |
Total loans | 3,530,370 | 3,234,266 |
Real estate construction | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 25,266 | 20,999 |
Charge offs | (380) | (750) |
Recoveries | 111 | 2,268 |
Net charge offs | (269) | 1,518 |
Provision for loan losses | (1,873) | 2,749 |
Balance at end of period | 23,124 | 25,266 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 23,124 | 25,266 |
Balance at end of period | 23,124 | 25,266 |
Loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 1,314,431 | 1,162,145 |
Total loans | 1,314,431 | 1,162,145 |
Residential mortgage | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 28,261 | 31,926 |
Charge offs | (3,035) | (5,636) |
Recoveries | 506 | 1,077 |
Net charge offs | (2,529) | (4,559) |
Provision for loan losses | 1,121 | 894 |
Balance at end of period | 26,853 | 28,261 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 976 | 166 |
Collectively evaluated for impairment | 25,877 | 28,095 |
Balance at end of period | 26,853 | 28,261 |
Loans: | ||
Individually evaluated for impairment | 9,389 | 6,956 |
Collectively evaluated for impairment | 6,024,777 | 5,776,311 |
Total loans | 6,034,166 | 5,783,267 |
Home equity | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 23,555 | 26,464 |
Charge offs | (3,434) | (7,048) |
Recoveries | 2,730 | 3,233 |
Net charge offs | (704) | (3,815) |
Provision for loan losses | (897) | 906 |
Balance at end of period | 21,954 | 23,555 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 0 | 46 |
Collectively evaluated for impairment | 21,954 | 23,509 |
Balance at end of period | 21,954 | 23,555 |
Loans: | ||
Individually evaluated for impairment | 650 | 1,281 |
Collectively evaluated for impairment | 950,944 | 1,004,521 |
Total loans | 951,594 | 1,005,802 |
Other consumer | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 5,525 | 6,435 |
Charge offs | (2,853) | (3,869) |
Recoveries | 640 | 765 |
Net charge offs | (2,213) | (3,104) |
Provision for loan losses | 2,070 | 2,194 |
Balance at end of period | 5,382 | 5,525 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 5,382 | 5,525 |
Balance at end of period | 5,382 | 5,525 |
Loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 399,209 | 419,968 |
Total loans | $ 399,209 | $ 419,968 |
Loans, Changes in the Allowan58
Loans, Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Change in the allowance for unfunded commitments | ||
Balance at beginning of period | $ 24,000 | |
Balance at end of period | 28,000 | $ 24,000 |
Allowance for Unfunded Commitments: | ||
Change in the allowance for unfunded commitments | ||
Balance at beginning of period | 24,400 | 24,900 |
Provision for unfunded commitments | 4,000 | (500) |
Balance at end of period | $ 28,400 | $ 24,400 |
Loans (Details Textuals)
Loans (Details Textuals) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Receivables [Abstract] | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 9,038 | $ 17,713 |
Restructured Loans Subsequently Accruing | 4,000 | |
Ytd Restructured Loans Still On Nonaccrual | $ 5,000 |
Goodwill and Intangible Asset60
Goodwill and Intangible Assets (Details Textuals) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2016USD ($)acquisition | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill acquired during period | $ 3,000 | ||
Additions to finite-lived intangible assets | $ 1,000 | $ 12,000 | |
Number of acquisitions | acquisition | 2 | ||
Goodwill | $ 971,951 | 968,844 | |
Fully amortized core deposits intangibles | 15,000 | ||
Goodwill, Impairment Loss | $ 0 | $ 0 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Summary of Core Deposit and Other Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Summary of core deposit intangibles and other intangibles | ||||||
Additions during the period | $ 1,000 | $ 12,000 | ||||
Amortization of other intangible assets | $ 525 | $ 885 | $ 1,568 | $ 2,574 | ||
Core Deposit Intangibles [Member] | ||||||
Summary of core deposit intangibles and other intangibles | ||||||
Gross carrying amount | 4,385 | 4,385 | 19,545 | |||
Accumulated amortization | (4,203) | (4,203) | (19,152) | |||
Total Estimated Amortization Expense | 182 | 182 | 393 | |||
Amortization of other intangible assets | 211 | 1,404 | ||||
Other Intangible Assets [Member] | ||||||
Summary of core deposit intangibles and other intangibles | ||||||
Gross carrying amount | 32,410 | 32,410 | 31,398 | |||
Accumulated amortization | (16,690) | (16,690) | (15,333) | |||
Total Estimated Amortization Expense | $ 15,720 | 15,720 | 16,065 | |||
Additions during the period | 1,012 | 12,115 | ||||
Amortization of other intangible assets | $ 1,357 | $ 1,690 |
Goodwill and Intangible Asset62
Goodwill and Intangible Assets, Mortgage Servicing Rights Roll-Forward (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Mortgage servicing rights: | ||
Mortgage servicing rights at beginning of year | $ 62,150 | $ 61,379 |
Additions | 8,701 | 12,372 |
Amortization | (9,142) | (11,601) |
Mortgage servicing rights at end of year | 61,709 | 62,150 |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | ||
Valuation allowance at beginning of year | (809) | (1,234) |
(Additions) recoveries, net | (2,486) | 425 |
Valuation allowance at end of year | (3,295) | (809) |
Mortgage servicing rights, net | 58,414 | 61,341 |
Fair value of mortgage servicing rights | 58,937 | 70,686 |
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) | $ 8,010,973 | $ 7,915,224 |
Mortgage servicing rights, net to servicing portfolio | 0.73% | 0.77% |
Mortgage servicing rights expense | $ 11,628 | $ 11,176 |
Goodwill and Intangible Asset63
Goodwill and Intangible Assets, Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Core Deposit Intangibles [Member] | ||
Estimated future amortization expense | ||
Three months ending December 31, 2016 | $ 70 | |
Year ending December 31, 2017 | 112 | |
Year ending December 31, 2018 | 0 | |
Year ending December 31, 2019 | 0 | |
Year ending December 31, 2020 | 0 | |
Year ending December 31, 2021 | 0 | |
Beyond 2,021 | 0 | |
Total Estimated Amortization Expense | 182 | $ 393 |
Other Intangible Assets [Member] | ||
Estimated future amortization expense | ||
Three months ending December 31, 2016 | 455 | |
Year ending December 31, 2017 | 1,786 | |
Year ending December 31, 2018 | 1,756 | |
Year ending December 31, 2019 | 1,457 | |
Year ending December 31, 2020 | 1,340 | |
Year ending December 31, 2021 | 1,316 | |
Beyond 2,021 | 7,610 | |
Total Estimated Amortization Expense | 15,720 | $ 16,065 |
Mortgage Service Rights [Member] | ||
Estimated future amortization expense | ||
Three months ending December 31, 2016 | 3,263 | |
Year ending December 31, 2017 | 11,237 | |
Year ending December 31, 2018 | 8,956 | |
Year ending December 31, 2019 | 7,223 | |
Year ending December 31, 2020 | 5,858 | |
Year ending December 31, 2021 | 4,784 | |
Beyond 2,021 | 20,388 | |
Total Estimated Amortization Expense | $ 61,709 |
Short and Long-Term Funding (Co
Short and Long-Term Funding (Components of Short-term and Long-term Funding) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Short-term Funding [Abstract] | ||
Federal funds purchased | $ 221,165 | $ 47,870 |
Securities sold under agreements to repurchase | 477,607 | 383,568 |
Federal funds purchased and securities sold under agreements to repurchase | 698,772 | 431,438 |
FHLB advances | 450,000 | 335,000 |
Commercial paper | 91,321 | 67,978 |
Other short-term funding | 541,321 | 402,978 |
Total short-term funding | 1,240,093 | 834,416 |
Long-term Funding | ||
FHLB advances | 2,265,198 | 1,750,225 |
Senior notes, at par | 250,000 | 680,000 |
Subordinated notes, at par | 250,000 | 250,000 |
Other long-term funding and capitalized costs | (3,563) | (4,061) |
Total long-term funding | 2,761,635 | 2,676,164 |
Total short and long-term funding | $ 4,001,728 | $ 3,510,580 |
Short and Long-Term Funding (Lo
Short and Long-Term Funding (Long-term Funding Narrative) (Details) - USD ($) | 1 Months Ended | ||||
Nov. 30, 2014 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2011 | Mar. 31, 2011 | |
Subordinated Borrowing [Line Items] | |||||
Carrying Value of Federal Funds Purchased, Securities Sold under Agreements to Repurchase, and Deposits Received for Securities Loaned | $ 543,000,000 | ||||
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 0.33% | 0.13% | |||
Two Thousand Eleven Senior Notes [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
New Senior Debt Issued | $ 130,000,000 | $ 300,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | ||||
Two Thousand Fourteen Senior Notes [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
New Senior Debt Issued | $ 250,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | ||||
Two Thousand Fourteen Subordinated Notes [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Junior Subordinated Debentures Issued | $ 250,000,000 | ||||
Debt Instrument, Term | 10 years | ||||
Subordinated Borrowing, Interest Rate | 4.25% |
Short and Long-Term Funding (Re
Short and Long-Term Funding (Remaining Contractual Maturity of the Securities Sold Under Agreements to Repurchase) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | $ 477,607 | $ 383,568 |
Overnight and Continuous | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | 477,607 | 383,568 |
Up to 30 days | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | 0 | 0 |
30-90 days | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | 0 | 0 |
GSE Securities | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | 477,607 | 383,568 |
GSE Securities | Overnight and Continuous | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | 477,607 | 383,568 |
GSE Securities | Up to 30 days | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | 0 | 0 |
GSE Securities | 30-90 days | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | 0 | 0 |
GSE Securities | Greater than 90 days | ||
Remaining Contractual Maturity of the Agreements | ||
Repurchase agreements | $ 0 | $ 0 |
Derivative and Hedging Activi67
Derivative and Hedging Activities, Derivative Instruments Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Trading assets | Interest rate-related instruments — customer and mirror | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | $ 1,953,306 | $ 1,665,965 |
Fair Value | 47,504 | 29,391 |
Trading assets | Foreign currency exchange forwards | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 77,732 | 72,976 |
Fair Value | 1,063 | 1,532 |
Trading assets | Commodity contracts | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 158,209 | 44,380 |
Fair Value | 12,213 | 1,269 |
Trading liabilities | Interest rate-related instruments — customer and mirror | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 1,953,306 | 1,665,965 |
Fair Value | (49,887) | (30,886) |
Trading liabilities | Foreign currency exchange forwards | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 76,945 | 65,649 |
Fair Value | (1,014) | (1,398) |
Trading liabilities | Commodity contracts | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 159,048 | 44,256 |
Fair Value | (11,400) | (1,146) |
Other assets | Interest rate lock commitments (mortgage) | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 520,932 | 271,530 |
Fair Value | 3,726 | 958 |
Other assets | Forward commitments (mortgage) | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 231,798 | |
Fair Value | 403 | |
Other assets | Purchased options (time deposit) | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 81,004 | 104,582 |
Fair Value | 2,455 | 2,715 |
Other liabilities | Forward commitments (mortgage) | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 383,000 | |
Fair Value | (1,868) | |
Other liabilities | Written options (time deposit) | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 81,004 | 104,582 |
Fair Value | $ (2,455) | $ (2,715) |
Derivative and Hedging Activi68
Derivative and Hedging Activities, Income Statement Category of the Gains and Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Capital market fees, net [Member] | Interest rate-related instruments — customer and mirror | ||
Gain (loss) on derivative instruments not designated as hedging instruments | ||
Gain / (Loss) Recognized in Income | $ (888) | $ 85 |
Capital market fees, net [Member] | Foreign currency exchange forwards | ||
Gain (loss) on derivative instruments not designated as hedging instruments | ||
Gain / (Loss) Recognized in Income | (85) | 16 |
Capital market fees, net [Member] | Commodity contracts | ||
Gain (loss) on derivative instruments not designated as hedging instruments | ||
Gain / (Loss) Recognized in Income | 690 | 0 |
Mortgage banking, net [Member] | Interest rate lock commitments (mortgage) | ||
Gain (loss) on derivative instruments not designated as hedging instruments | ||
Gain / (Loss) Recognized in Income | 2,768 | 637 |
Mortgage banking, net [Member] | Forward commitments (mortgage) | ||
Gain (loss) on derivative instruments not designated as hedging instruments | ||
Gain / (Loss) Recognized in Income | $ (2,271) | $ 453 |
Derivative and Hedging Activi69
Derivative and Hedging Activities (Details Textuals) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Investment securities and cash equivalents pledged as collateral | $ 38 | $ 9 |
Derivative collateral right to reclaim cash | $ 37 | $ 22 |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) - Interest Rate Contract [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Offsetting Derivative Assets [Abstract] | ||
Gross amounts recognized | $ 5,193 | $ 1,466 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts presented in the balance sheet | 5,193 | 1,466 |
Financial instruments | (5,193) | (1,466) |
Collateral | 0 | 0 |
Net amount | 0 | 0 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts recognized | 59,413 | 30,200 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts presented in the balance sheet | 59,413 | 30,200 |
Financial instruments | (5,193) | (1,466) |
Collateral | (54,220) | (28,734) |
Net amount | $ 0 | $ 0 |
Commitments, Off-Balance Shee71
Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings (Summary of Lending Related and Other Commitments) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale [Member] | ||
Summary of lending-related and other commitments | ||
Lending related commitments | $ 7,849,498 | $ 7,402,518 |
Commercial Letters Of Credit [Member] | ||
Summary of lending-related and other commitments | ||
Lending related commitments | 8,935 | 9,945 |
Standby Letters of Credit [Member] | ||
Summary of lending-related and other commitments | ||
Lending related commitments | 265,381 | 296,508 |
Standby letters of credit, fair value | $ 3,000 | $ 3,000 |
Commitments, Off-Balance Shee72
Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings (Details Textuals) $ in Thousands | Jan. 11, 2016USD ($)complaint | May 22, 2015USD ($)loan_production_officebranch | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Textuals) [Line Items] | |||||
Unfunded commitments | $ 28,000 | $ 24,000 | |||
Carrying value of investments | 68,000 | 52,000 | |||
Commitments under unconsolidated projects | 54,000 | 61,000 | |||
Commitment term | 3 years | ||||
Mortgage loan commitment | $ 196,000 | ||||
Number of branch opening commitments | branch | 1 | ||||
Number of loan production offices | loan_production_office | 4 | ||||
Conciliation agreement cost, commitment term | 4 years | ||||
Number of complaints filed under legal proceedings | complaint | 2 | ||||
Loans repurchased under make whole requests | 2,000 | 3,000 | |||
Loans sold to outside investors original amount | 8,800,000 | ||||
Loans sold to outside investors remaining outstanding amount | 6,000,000 | ||||
Residential mortgage loans sold with recourse risk | 48,000 | 68,000 | |||
Residential mortgage loans sold with credit recourse risk | 104,000 | 132,000 | |||
The Official Committee of Unsecured Creditors of World Marketing Chicago LLC v Associated Bank [Member] | |||||
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Textuals) [Line Items] | |||||
Damages sought | $ 6,000 | ||||
Damages sought, cash | 4,000 | ||||
American Funds Service Company v Associated Bank [Member] | |||||
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Textuals) [Line Items] | |||||
Damages sought | $ 600 | ||||
Reserve for Off-balance Sheet Activities | |||||
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Textuals) [Line Items] | |||||
Unfunded commitments | 28,400 | 24,400 | $ 24,900 | ||
Mortgage Repurchase Reserve [Member] | |||||
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Textuals) [Line Items] | |||||
Unfunded commitments | 1,534 | 1,197 | $ 3,258 | ||
Standby Letters of Credit [Member] | |||||
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Textuals) [Line Items] | |||||
Lines of Credit, Fair Value Disclosure | $ 3,000 | $ 3,000 |
Commitments, Off-Balance Shee73
Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings (Residential Mortgage Repurchase Reserve) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Summary of changes in the residential mortgage repurchase reserve [Line Items] | ||
Loans Repurchased Under Make Whole Requests | $ 2,000 | $ 3,000 |
Residential mortgage repurchase reserve | ||
Balance at beginning of period | 24,000 | |
Balance at end of period | 28,000 | 24,000 |
Mortgage Repurchase Reserve [Member] | ||
Residential mortgage repurchase reserve | ||
Balance at beginning of period | 1,197 | 3,258 |
Repurchase provision expense | 342 | 428 |
Adjustments to provision expense | 0 | (2,450) |
Charge offs, net | (5) | (39) |
Balance at end of period | $ 1,534 | $ 1,197 |
Fair Value Measurements, Assets
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | $ 4,846,088 | $ 4,967,414 |
Trading assets | 60,780 | 32,192 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 62,301 | 33,430 |
Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 2,630 | 2,566 |
Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 4,843,258 | 4,964,648 |
Trading assets | 63,235 | 34,907 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 64,756 | 36,145 |
Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 200 | 200 |
Trading assets | 3,726 | 1,361 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 1,868 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 | U.S. Treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 1,001 | 997 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 | Other securities (debt and equity) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 1,629 | 1,569 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 | Total investment securities available for sale | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 2,630 | 2,566 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | FNMA / FHLMC | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 912,860 | 1,414,626 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | GNMA | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 1,811,529 | 1,590,003 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Private-label | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 1,200 | 1,709 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | GNMA commercial mortgage-related securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 2,114,669 | 1,955,310 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Other securities (debt and equity) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 3,000 | 3,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Total investment securities available for sale | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 4,843,258 | 4,964,648 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Interest rate-related instruments | ||
Assets, Fair Value Disclosure [Abstract] | ||
Trading assets | 47,504 | 29,391 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 49,887 | 30,886 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Foreign currency exchange forwards | ||
Assets, Fair Value Disclosure [Abstract] | ||
Trading assets | 1,063 | 1,532 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 1,014 | 1,398 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Commodity contracts | ||
Assets, Fair Value Disclosure [Abstract] | ||
Trading assets | 12,213 | 1,269 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 11,400 | 1,146 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Purchased options (time deposit) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Trading assets | 2,455 | 2,715 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 2,455 | 2,715 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 | Other securities (debt and equity) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 200 | 200 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 | Total investment securities available for sale | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 200 | 200 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 | Interest rate lock commitments to originate residential mortgage loans held for sale | ||
Assets, Fair Value Disclosure [Abstract] | ||
Trading assets | 3,726 | 958 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 | Forward commitments to sell residential mortgage loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Trading assets | 0 | 403 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | $ 1,868 | $ 0 |
Fair Value Measurements, Asse75
Fair Value Measurements, Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Investment Securities Available for Sale | ||
Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) | ||
Beginning Balance | $ 200 | $ 200 |
Mortgage derivative gain (loss) | 0 | 0 |
Ending Balance | 200 | 200 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Mortgage derivative gain (loss) | 0 | 0 |
Derivative Financial Instruments | ||
Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) | ||
Mortgage derivative gain (loss) | 497 | 1,849 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | 1,361 | (488) |
Mortgage derivative gain (loss) | 497 | 1,849 |
Ending Balance | $ 1,858 | $ 1,361 |
Fair Value Measurements, Asse76
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | |||
Mortgage servicing rights | $ 58,414 | $ 61,341 | |
Mortgage Servicing Rights (MSR) Impairment (Recovery) | 2,486 | $ (306) | |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | |||
Commercial loans held for sale | 16,912 | ||
Provision for Credit Losses, Commercial Loans held-for-sale | (451) | ||
Mortgage loans held for sale | 214,298 | 124,915 | |
market valuation adjustment, loans held for sale | 0 | (155) | |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | |||
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | |||
Impaired loans | 47,554 | 41,891 | |
Provision for Credit Losses, Impaired Loans | (53,866) | (7,796) | |
Mortgage servicing rights | 58,937 | 70,686 | |
Mortgage Servicing Rights (MSR) Impairment (Recovery) | $ (2,486) | $ 425 |
Fair Value Measurements, Fair V
Fair Value Measurements, Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financial assets | ||
Cash and due from banks | $ 356,047 | $ 374,921 |
Interest-bearing deposits in other financial institutions | 240,010 | 79,764 |
Federal funds sold and securities purchased under agreements to resell | 14,250 | 19,000 |
Investment securities held to maturity | 1,253,494 | 1,168,230 |
Investment securities held to maturity, fair value | 1,287,830 | 1,184,442 |
Investment securities available for sale | 4,846,088 | 4,967,414 |
FHLB and Federal Reserve Bank stocks | 140,215 | 147,240 |
Loans held for sale | 230,795 | 124,915 |
Loans, net | 19,574,465 | 18,440,079 |
Derivatives (trading and other assets) | 60,780 | 32,192 |
Financial liabilities | ||
Short-term funding | 1,240,093 | 834,416 |
Long-term funding | 2,761,635 | 2,676,164 |
Derivatives (trading and other liabilities) | 62,301 | 33,430 |
Fair Value, Inputs, Level 1 | ||
Financial assets | ||
Cash and due from banks | 356,047 | 374,921 |
Cash and due from banks, Fair Value | 356,047 | 374,921 |
Interest-bearing deposits in other financial institutions | 240,010 | 79,764 |
Interest-bearing deposits in other financial institutions, fair value | 240,010 | 79,764 |
Federal funds sold and securities purchased under agreements to resell | 14,250 | 19,000 |
Federal funds sold and securities purchased under agreements to resell, fair value | 14,250 | 19,000 |
Investment securities available for sale | 2,630 | 2,566 |
Investment securities available for sale, at fair value | 2,630 | 2,566 |
Fair Value, Inputs, Level 2 | ||
Financial assets | ||
Investment securities held to maturity | 1,253,494 | 1,168,230 |
Investment securities held to maturity, fair value | 1,287,830 | 1,184,442 |
Investment securities available for sale | 4,843,258 | 4,964,648 |
Investment securities available for sale, at fair value | 4,843,258 | 4,964,648 |
FHLB and Federal Reserve Bank stocks | 140,215 | 147,240 |
FHLB and Federal Reserve Bank stocks, fair value | 140,215 | 147,240 |
Loans held for sale | 230,795 | 124,915 |
Loans held for sale, fair value | 231,210 | 124,915 |
Bank owned life insurance | 584,088 | 583,019 |
Bank owned life insurance, fair value | 584,088 | 583,019 |
Derivatives (trading and other assets) | 63,235 | 34,907 |
Derivatives (trading and other assets), fair value | 63,235 | 34,907 |
Financial liabilities | ||
Brokered CDs and other time deposits | 1,526,101 | 1,562,802 |
Brokered CDs and other time deposits, fair value | 1,530,993 | 1,564,464 |
Short-term funding | 1,240,093 | 834,416 |
Short-term funding, fair value | 1,240,093 | 834,416 |
Long-term funding | 2,761,635 | 2,676,164 |
Long-term funding, fair value | 2,820,062 | 2,728,112 |
Standby letters of credit | 2,619 | 2,954 |
Standby letters of credit, fair value | 2,619 | 2,954 |
Derivatives (trading and other liabilities) | 64,756 | 36,145 |
Derivatives (trading and other liabilities), fair value | 64,756 | 36,145 |
Fair Value, Inputs, Level 3 | ||
Financial assets | ||
Investment securities available for sale | 200 | 200 |
Investment securities available for sale, at fair value | 200 | 200 |
Loans, net | 19,574,465 | 18,440,079 |
Loans, net, fair value | 19,588,911 | 18,389,832 |
Derivatives (trading and other assets) | 3,726 | 1,361 |
Derivatives (trading and other assets), fair value | 3,726 | 1,361 |
Financial liabilities | ||
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts | 20,221,611 | 19,444,863 |
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts, fair value | 20,221,611 | 19,444,863 |
Derivatives (trading and other liabilities) | 1,868 | 0 |
Derivatives (trading and other liabilities), fair value | $ 1,868 | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Textuals) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value Measurements (Textuals) [Abstract] | ||
Other real estate owned measured at fair value | $ 9 | $ 11 |
Write down of Other Real Estate Owned | 1 | 3 |
Commitment on standby letters of credit | $ 265 | $ 297 |
Fair Value of Assets and Liabilities [Line Items] | ||
Closing ratio | 88.00% | |
Weighted average discount rate | 9.60% | |
Weighted average constant prepayment rate | 15.50% | |
Maximum [Member] | ||
Fair Value of Assets and Liabilities [Line Items] | ||
Weighted average discount rate | 20.00% | |
Minimum [Member] | ||
Fair Value of Assets and Liabilities [Line Items] | ||
Weighted average discount rate | 20.00% |
Retirement Plans, Components of
Retirement Plans, Components of Net Periodic Benefit Cost for the Pension and Postretirement Tables (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Retirement Plans Textuals [Abstract] | ||||
Defined Benefit Plan, Age of Eligibility of Plan | 55 years | |||
Defined Benefit Plan, Service Period for Eligibility in Plan | 5 years | |||
Pension Plan [Member] | ||||
Net period benefit cost for the pension and postretirement plans | ||||
Service cost | $ 1,636 | $ 2,318 | $ 5,086 | $ 8,443 |
Interest cost | 1,781 | 1,678 | 5,341 | 4,963 |
Expected return on plan assets | (5,085) | (5,379) | (15,215) | (16,079) |
Amortization of prior service cost | (80) | 12 | (55) | 37 |
Amortization of actuarial loss | 621 | 627 | 1,586 | 1,692 |
Total net pension cost | (1,127) | (744) | (3,257) | (944) |
Other Postretirement Benefit Plan [Member] | ||||
Net period benefit cost for the pension and postretirement plans | ||||
Interest cost | 35 | 35 | 107 | 105 |
Total net pension cost | $ 35 | $ 35 | $ 107 | $ 105 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)segment | Sep. 30, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Segment Income Statement Data Abstract | ||||
Net interest income | $ 178,534 | $ 170,509 | $ 527,238 | $ 504,810 |
Noninterest income | 95,234 | 80,065 | 260,594 | 246,360 |
Total revenue | 273,768 | 250,574 | 787,832 | 751,170 |
Credit provision | 21,000 | 8,000 | 55,000 | 17,500 |
Noninterest expense | 175,314 | 171,585 | 523,645 | 522,354 |
Income before income taxes | 77,454 | 70,989 | 209,187 | 211,316 |
Income tax expense (benefit) | 23,638 | 21,551 | 63,746 | 65,806 |
Net income | $ 53,816 | $ 49,438 | $ 145,441 | $ 145,510 |
Return on average allocated capital (ROCET1) | 10.50% | 10.20% | 9.70% | 10.30% |
Segment Balance Sheet Data | ||||
Average earning assets | $ 26,434,163 | $ 24,834,343 | $ 25,893,509 | $ 24,418,759 |
Average loans | 20,052,776 | 18,452,749 | 19,541,072 | 18,154,392 |
Average deposits | 21,404,025 | 20,293,599 | 20,758,415 | 19,662,872 |
Average allocated capital (CET1) | 1,952,616 | 1,837,436 | 1,920,895 | 1,820,612 |
Operating Segments [Member] | Corporate and Commercial Specialty | ||||
Segment Income Statement Data Abstract | ||||
Net interest income | 83,567 | 78,283 | 242,800 | 230,130 |
Noninterest income | 12,623 | 11,305 | 35,172 | 36,222 |
Total revenue | 96,190 | 89,588 | 277,972 | 266,352 |
Credit provision | 11,080 | 10,851 | 38,933 | 30,312 |
Noninterest expense | 37,968 | 37,293 | 109,511 | 106,643 |
Income before income taxes | 47,142 | 41,444 | 129,528 | 129,397 |
Income tax expense (benefit) | 14,907 | 13,955 | 42,623 | 44,384 |
Net income | $ 32,235 | $ 27,489 | $ 86,905 | $ 85,013 |
Return on average allocated capital (ROCET1) | 11.70% | 11.00% | 10.90% | 11.80% |
Segment Balance Sheet Data | ||||
Average earning assets | $ 10,441,454 | $ 9,475,469 | $ 10,097,995 | $ 9,373,312 |
Average loans | 10,435,341 | 9,466,761 | 10,088,777 | 9,363,936 |
Average deposits | 6,227,305 | 6,044,306 | 5,906,695 | 5,730,918 |
Average allocated capital (CET1) | 1,091,624 | 988,283 | 1,063,598 | 966,746 |
Operating Segments [Member] | Community, Consumer, and Business | ||||
Segment Income Statement Data Abstract | ||||
Net interest income | 87,274 | 88,209 | 257,848 | 261,951 |
Noninterest income | 78,580 | 64,879 | 207,460 | 199,753 |
Total revenue | 165,854 | 153,088 | 465,308 | 461,704 |
Credit provision | 5,969 | 5,963 | 18,357 | 19,625 |
Noninterest expense | 127,454 | 122,361 | 370,714 | 366,121 |
Income before income taxes | 32,431 | 24,764 | 76,237 | 75,958 |
Income tax expense (benefit) | 11,351 | 8,667 | 26,683 | 26,585 |
Net income | $ 21,080 | $ 16,097 | $ 49,554 | $ 49,373 |
Return on average allocated capital (ROCET1) | 13.20% | 10.10% | 10.50% | 10.30% |
Segment Balance Sheet Data | ||||
Average earning assets | $ 9,414,718 | $ 8,917,831 | $ 9,287,158 | $ 8,719,078 |
Average loans | 9,413,401 | 8,917,831 | 9,285,848 | 8,719,078 |
Average deposits | 11,526,639 | 10,969,172 | 11,320,106 | 10,786,342 |
Average allocated capital (CET1) | 633,392 | 632,878 | 631,484 | 640,116 |
Operating Segments [Member] | Risk Management and Shared Services | ||||
Segment Income Statement Data Abstract | ||||
Net interest income | 7,693 | 4,017 | 26,590 | 12,729 |
Noninterest income | 4,031 | 3,881 | 17,962 | 10,385 |
Total revenue | 11,724 | 7,898 | 44,552 | 23,114 |
Credit provision | 3,951 | (8,814) | (2,290) | (32,437) |
Noninterest expense | 9,892 | 11,931 | 43,420 | 49,590 |
Income before income taxes | (2,119) | 4,781 | 3,422 | 5,961 |
Income tax expense (benefit) | (2,620) | (1,071) | (5,560) | (5,163) |
Net income | $ 501 | $ 5,852 | $ 8,982 | $ 11,124 |
Return on average allocated capital (ROCET1) | (2.90%) | 6.70% | 1.40% | 3.90% |
Segment Balance Sheet Data | ||||
Average earning assets | $ 6,577,991 | $ 6,441,043 | $ 6,508,356 | $ 6,326,369 |
Average loans | 204,034 | 68,157 | 166,447 | 71,378 |
Average deposits | 3,650,081 | 3,280,121 | 3,531,614 | 3,145,612 |
Average allocated capital (CET1) | $ 227,600 | $ 216,275 | $ 225,813 | $ 213,750 |
Accumulated Other Comprehensi81
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | $ (32,616) | |||
Personnel expense | $ (103,819) | $ (101,134) | (307,346) | $ (304,272) |
Interest income (Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities) | (1,441) | 0 | (4,465) | 0 |
Total other comprehensive income (loss) | 14,707 | (12,782) | (31,362) | (20,226) |
Ending Balance | (1,254) | (1,254) | ||
Investment Securities Available For Sale [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | 45,916 | 25,282 | 459 | 18,512 |
Other comprehensive income (loss) before reclassifications | (22,894) | 22,907 | 59,849 | 35,101 |
Investment securities gain (loss), net | 13 | (2,796) | (6,201) | (4,038) |
Personnel expense | 0 | 0 | 0 | 0 |
Interest income (Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities) | (1,441) | (4,465) | ||
Income tax (expense) benefit | 9,280 | (7,725) | (18,768) | (11,907) |
Total other comprehensive income (loss) | 15,042 | (12,386) | (30,415) | (19,156) |
Ending Balance | 30,874 | 37,668 | 30,874 | 37,668 |
Defined Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (32,463) | (22,688) | (33,075) | (23,362) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Investment securities gain (loss), net | 0 | 0 | 0 | 0 |
Personnel expense | 541 | 639 | 1,531 | 1,729 |
Interest income (Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities) | 0 | 0 | ||
Income tax (expense) benefit | (206) | (243) | (584) | (659) |
Total other comprehensive income (loss) | (335) | (396) | (947) | (1,070) |
Ending Balance | (32,128) | (22,292) | (32,128) | (22,292) |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | 13,453 | 2,594 | (32,616) | (4,850) |
Other comprehensive income (loss) before reclassifications | (22,894) | 22,907 | 59,849 | 35,101 |
Investment securities gain (loss), net | 13 | (2,796) | (6,201) | (4,038) |
Personnel expense | 541 | 639 | 1,531 | 1,729 |
Interest income (Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities) | (1,441) | (4,465) | ||
Income tax (expense) benefit | 9,074 | (7,968) | (19,352) | (12,566) |
Total other comprehensive income (loss) | 14,707 | (12,782) | (31,362) | (20,226) |
Ending Balance | $ (1,254) | $ 15,376 | $ (1,254) | $ 15,376 |