Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 26, 2017 | |
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 | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 | 152,319,854 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
ASSETS | |||
Cash and due from banks | $ 332,601 | $ 446,558 | |
Interest-bearing deposits in other financial institutions | 337,167 | 149,175 | |
Federal funds sold and securities purchased under agreements to resell | 19,700 | 46,500 | |
Investment securities held to maturity, at amortized cost | 1,554,843 | 1,273,536 | |
Investment securities available for sale, at fair value | 4,300,490 | 4,680,226 | |
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | 139,273 | 140,001 | |
Residential loans held for sale | 34,051 | 108,010 | |
Commercial loans held for sale | 2,901 | 12,474 | |
Loans | 20,147,683 | 20,054,716 | |
Allowance for loan losses | (282,672) | (278,335) | |
Loans, net | 19,865,011 | 19,776,381 | |
Premises and equipment, net | 332,884 | 330,315 | |
Goodwill | 972,006 | 971,951 | |
Mortgage servicing rights | 60,702 | 61,476 | |
Other intangible assets | 15,026 | 15,377 | |
Trading assets | 49,306 | 52,398 | |
Other assets | [1] | 1,093,896 | 1,074,937 |
Total assets | 29,109,857 | 29,139,315 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Noninterest-bearing demand deposits | 5,338,212 | 5,392,208 | |
Interest-bearing deposits | 16,489,823 | 16,496,240 | |
Total deposits | 21,828,035 | 21,888,448 | |
Federal funds purchased and securities sold under agreements to repurchase | 650,188 | 508,347 | |
Other short-term funding | 430,679 | 583,688 | |
Long-term funding | [1] | 2,761,955 | 2,761,795 |
Trading liabilities | 47,561 | 51,103 | |
Accrued expenses and other liabilities | 246,645 | 254,622 | |
Total liabilities | 25,965,063 | 26,048,003 | |
Stockholders’ equity | |||
Preferred equity | 159,929 | 159,929 | |
Common stock | 1,630 | 1,630 | |
Surplus | 1,469,744 | 1,459,498 | |
Retained earnings | 1,709,514 | 1,695,764 | |
Accumulated other comprehensive loss | (56,344) | (54,679) | |
Treasury stock, at cost | (139,679) | (170,830) | |
Total common equity | 2,984,865 | 2,931,383 | |
Total stockholders’ equity | 3,144,794 | 3,091,312 | |
Total liabilities and stockholders’ equity | $ 29,109,857 | $ 29,139,315 | |
Preferred shares issued (in shares) | 165,000 | 165,000 | |
Preferred shares authorized (par value $1.00 per share) (in shares) | 750,000 | 750,000 | |
Common shares issued (in shares) | 163,030,209 | 163,030,209 | |
Common shares authorized (par value $0.01 per share) (in shares) | 250,000,000 | 250,000,000 | |
Treasury shares of common stock (in shares) | 9,296,566 | 10,909,362 | |
[1] | (1)Effective January 1, 2017, residential loans originated for sale are accounted for under the fair value option. Prior periods have not been restated. For more information on this accounting policy change, please refer to Note 3 to the Notes to the Consolidated Financial Statements. |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
INTEREST INCOME | ||
Interest and fees on loans | $ 173,649 | $ 159,656 |
Interest and dividends on investment securities: | ||
Taxable | 23,475 | 25,516 |
Tax exempt | 8,129 | 7,830 |
Other interest | 1,536 | 1,067 |
Total interest income | 206,789 | 194,069 |
INTEREST EXPENSE | ||
Interest on deposits | 16,924 | 11,766 |
Interest on Federal funds purchased and securities sold under agreements to repurchase | 515 | 296 |
Interest on other short-term funding | 1,080 | 515 |
Interest on long-term funding | 7,996 | 9,505 |
Total interest expense | 26,515 | 22,082 |
NET INTEREST INCOME | 180,274 | 171,987 |
Provision for credit losses | 9,000 | 20,000 |
Net interest income after provision for credit losses | 171,274 | 151,987 |
NONINTEREST INCOME | ||
Trust service fees | 11,935 | 11,447 |
Service charges on deposit accounts | 16,356 | 16,273 |
Card-based and other nondeposit fees | 12,465 | 11,991 |
Insurance commissions | 21,620 | 21,382 |
Brokerage and annuity commissions | 4,333 | 3,794 |
Mortgage banking, net | 4,579 | 4,204 |
Capital market fees, net | 3,883 | 3,538 |
Bank owned life insurance income | 2,615 | 4,770 |
Asset gains (losses), net | (234) | 524 |
Investment securities gains, net | 0 | 3,098 |
Other | 2,279 | 2,171 |
Total noninterest income | 79,831 | 83,192 |
NONINTEREST EXPENSE | ||
Personnel expense | 104,419 | 101,398 |
Occupancy | 15,219 | 13,802 |
Equipment | 5,485 | 5,446 |
Technology | 14,420 | 14,264 |
Business development and advertising | 5,835 | 8,211 |
Other intangible amortization | 513 | 504 |
Loan expense | 2,620 | 3,221 |
Legal and professional fees | 4,166 | 5,025 |
Foreclosure / OREO expense | 1,505 | 1,877 |
FDIC expense | 8,000 | 7,750 |
Other | 11,509 | 12,473 |
Total noninterest expense | 173,691 | 173,971 |
Income before income taxes | 77,414 | 61,208 |
Income tax expense | 21,144 | 18,674 |
Net income | 56,270 | 42,534 |
Preferred stock dividends | 2,330 | 2,198 |
Net income available to common equity | $ 53,940 | $ 40,336 |
Earnings per common share: | ||
Basic (in usd per share) | $ 0.36 | $ 0.27 |
Diluted (in usd per share) | $ 0.35 | $ 0.27 |
Average common shares outstanding: | ||
Basic (in shares) | 150,815 | 148,601 |
Diluted (in shares) | 153,869 | 149,454 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 56,270 | $ 42,534 |
Investment securities available for sale: | ||
Net unrealized gains | 3,152 | 60,422 |
Net unrealized losses on available for sale securities transferred to held to maturity securities | (5,264) | 0 |
Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities | (1,027) | (1,572) |
Reclassification adjustment for net gains realized in net income | 0 | (3,098) |
Income tax (expense) benefit | 1,195 | (21,275) |
Other comprehensive income (loss) on investment securities available for sale | (1,944) | 34,477 |
Defined benefit pension and postretirement obligations: | ||
Amortization of prior service cost | (38) | 13 |
Amortization of actuarial losses | 488 | 482 |
Income tax expense | (171) | (189) |
Other comprehensive income (loss) on pension and postretirement obligations | 279 | 306 |
Total other comprehensive income (loss) | (1,665) | 34,783 |
Comprehensive income | $ 54,605 | $ 77,317 |
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, 2015 | $ 2,937,246 | $ 121,379 | $ 1,642 | $ 1,458,522 | $ 1,593,239 | $ (32,616) | $ (204,920) |
Comprehensive income: | |||||||
Net income | 42,534 | 0 | 0 | 0 | 42,534 | 0 | 0 |
Other comprehensive income | 34,783 | 0 | 0 | 0 | 0 | 34,783 | 0 |
Comprehensive income | 77,317 | ||||||
Common stock issued: | |||||||
Stock-based compensation plans, net | 2,205 | 0 | 0 | 613 | (17,271) | 0 | 18,863 |
Purchase of common stock returned to authorized but unissued | (20,007) | 0 | (12) | (19,995) | 0 | 0 | 0 |
Purchase of treasury stock | (2,792) | 0 | 0 | 0 | 0 | 0 | (2,792) |
Cash dividends: | |||||||
Common stock dividends ($0.11 per share in 2016 and $0.12 per share in 2017) | (16,409) | 0 | 0 | 0 | (16,409) | 0 | 0 |
Preferred stock dividends | (2,198) | 0 | 0 | 0 | (2,198) | 0 | 0 |
Purchase of preferred stock | (1,092) | (1,032) | 0 | 0 | (60) | 0 | 0 |
Stock-based compensation expense, net | 8,066 | 0 | 0 | 8,066 | 0 | 0 | 0 |
Tax impact of stock-based compensation | 162 | 0 | 0 | 162 | 0 | 0 | 0 |
Ending balance at Mar. 31, 2016 | 2,982,498 | 120,347 | 1,630 | 1,447,368 | 1,599,835 | 2,167 | (188,849) |
Beginning balance at Dec. 31, 2016 | 3,091,312 | 159,929 | 1,630 | 1,459,498 | 1,695,764 | (54,679) | (170,830) |
Comprehensive income: | |||||||
Net income | 56,270 | 0 | 0 | 0 | 56,270 | 0 | 0 |
Other comprehensive income | (1,665) | 0 | 0 | 0 | 0 | (1,665) | 0 |
Comprehensive income | 54,605 | ||||||
Common stock issued: | |||||||
Stock-based compensation plans, net | 17,940 | 0 | 0 | 868 | (21,822) | 0 | 38,894 |
Purchase of treasury stock | (7,743) | 0 | 0 | 0 | 0 | 0 | (7,743) |
Cash dividends: | |||||||
Common stock dividends ($0.11 per share in 2016 and $0.12 per share in 2017) | (18,368) | 0 | 0 | 0 | (18,368) | 0 | 0 |
Preferred stock dividends | (2,330) | 0 | 0 | 0 | (2,330) | 0 | 0 |
Stock-based compensation expense, net | 8,344 | 0 | 0 | 8,344 | 0 | 0 | 0 |
Other | 1,034 | 0 | 0 | 1,034 | 0 | 0 | 0 |
Ending balance at Mar. 31, 2017 | $ 3,144,794 | $ 159,929 | $ 1,630 | $ 1,469,744 | $ 1,709,514 | $ (56,344) | $ (139,679) |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Common Stock | ||
Cash dividends: | ||
Common stock dividends (usd per share) | $ 0.12 | $ 0.11 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 56,270 | $ 42,534 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 9,000 | 20,000 | |
Depreciation and amortization | 11,505 | 11,060 | |
Addition to valuation allowance on mortgage servicing rights, net | 217 | 909 | |
Amortization of mortgage servicing rights | 2,477 | 2,874 | |
Amortization of other intangible assets | 513 | 504 | |
Amortization and accretion on earning assets, funding, and other, net | 8,215 | 10,692 | |
Tax impact of stock based compensation | 3,486 | 162 | |
Gain on sales of investment securities, net | 0 | (3,098) | |
Asset (gains) losses, net | 234 | (524) | |
Gain on mortgage banking activities, net | 5,171 | (3,106) | |
Mortgage loans originated and acquired for sale | (101,280) | (193,849) | |
Proceeds from sales of mortgage loans held for sale | 196,578 | 221,764 | |
Increase in interest receivable | (761) | (5,180) | |
Decrease in interest payable | (185) | (6,121) | |
Commercial loans held for sale | (2,155) | (30,089) | |
Other, net | (19,532) | (46,160) | |
Net cash provided by operating activities | 169,753 | 22,372 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Net increase in loans | (113,051) | (531,891) | |
Purchases of: | |||
Available for sale securities | (163,442) | (182,895) | |
Held to maturity securities | (2,655) | (28,570) | |
Federal Home Loan Bank and Federal Reserve Bank stocks | (58,362) | (34,613) | |
Premises, equipment, and software, net of disposals | (13,586) | (70,685) | |
Other assets | (5,433) | (1,226) | |
Proceeds from: | |||
Sales of available for sale securities | 0 | 119,379 | |
Proceeds from Sale of Federal Home Loan Bank Stock | 59,090 | 0 | |
Prepayments, calls, and maturities of available for sale investment securities | 231,019 | 180,458 | |
Prepayments, calls, and maturities of held to maturity investment securities | 22,916 | 15,029 | |
Sales, prepayments, calls, and maturities of other assets | 3,293 | 9,566 | |
Net cash paid in acquisition | (217) | (685) | |
Net cash used in investing activities | (40,428) | (526,133) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net decrease in deposits | (60,413) | (322,205) | |
Net increase (decrease) in short-term funding | (11,168) | 582,992 | |
Repayment of long-term funding | (8) | (430,010) | |
Proceeds from issuance of long-term funding | 0 | 615,000 | |
Proceeds from issuance of common stock for stock-based compensation plans | 17,940 | 2,205 | |
Purchase of preferred stock | 0 | (1,092) | |
Purchase of common stock returned to authorized but unissued | 0 | (20,007) | |
Purchase of treasury stock for tax withholding | (7,743) | (2,792) | |
Cash dividends on common stock | (18,368) | (16,409) | |
Cash dividends on preferred stock | (2,330) | (2,198) | |
Net cash provided by financing activities | (82,090) | 405,484 | |
Net increase (decrease) in cash and cash equivalents | 47,235 | (98,277) | |
Cash and cash equivalents at beginning of period | 642,233 | 473,685 | $ 473,685 |
Cash and cash equivalents at end of period | 689,468 | 375,408 | $ 642,233 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 26,531 | 28,041 | |
Cash paid for income taxes | 1,052 | 1,167 | |
Loans and bank premises transferred to other real estate owned | 921 | 3,160 | |
Capitalized mortgage servicing rights | 1,920 | 1,856 | |
Loans transferred into held for sale from portfolio, net | 13,905 | 0 | |
Fair value of assets acquired, including cash and cash equivalents | 0 | 522 | |
Fair value ascribed to goodwill and intangible assets | 217 | 4,119 | |
Fair value of liabilities assumed | $ 0 | $ 1,423 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
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 | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions During the first quarter of 2017, the Corporation completed a small insurance acquisition to complement its existing insurance and benefits related products and services provided by Associated Benefits and Risk Consulting ("ABRC"). The Corporation recorded goodwill of $55,000 and other intangibles of $162,000 related to the insurance acquisition. 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 ABRC. The Corporation recorded goodwill of $3 million and other intangibles of $1 million related to these insurance acquisitions. See Note 8 for additional information on goodwill and other intangible assets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Accounting Policy Elections Effective January 1, 2017, residential mortgage loans that are classified as held for sale are accounted using the fair value option method of accounting. The Corporation has elected the fair value option to mitigate accounting mismatches between held for sale loan valuations and corresponding derivative commitments. Prior to January 1, 2017, residential mortgage loans that were classified as held for sale were accounted for at the lower of cost or market method (“LOCOM”) of accounting. New Accounting Pronouncements Adopted Standard Description Date of adoption Effect on financial statements ASU 2017-08 Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities The amendments of the new standard require that certain purchased callable debt securities held at a premium be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount, which continue to be amortized to maturity. 1st Quarter 2017 The Corporation early adopted with no material impact on results of operations, financial position, or liquidity. ASU 2017-03 Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323) The standard states that ASUs which have not been adopted yet, the registrant needs to determine the potential effects (if material) of those ASUs on the financial statements when adopted and include the appropriate disclosures in the financial statements. If the impact of adoption is unknown or cannot be estimated, the registrant should include a statement noting this and consider adding qualitative disclosures to the financial statements to assist the reader in evaluating the impact of the ASUs, when adopted, on the financial statements. 1st Quarter 2017 No material impact on results of operations, financial position, or liquidity. ASU 2016-17 Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control The FASB issued an amendment to address how a reporting entity that is a single decision maker of a variable interest entity treats indirect interests in the entity held through related parties that are under common control with the reporting entity. 1st Quarter 2017 No material impact on results of operations, financial position, or liquidity. ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The FASB issued an amendment involving several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Entities should apply the amendment related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Entities should apply the amendment related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement retrospectively. The amendment requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively. 4th Quarter 2016 The Corporation early adopted the accounting standard and recognized a $1 million reduction in income taxes for the excess tax benefits on stock-based compensation. The remaining provisions of this accounting standard did not have a material impact. ASU 2016-07 Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting The FASB issued an amendment to eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. Entities should apply the amendment prospectively to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. 1st Quarter 2017 No material impact on results of operations, financial position, or liquidity. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2017 | |
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. For the Three Months Ended March 31, 2017 2016 (In thousands, except per share data) Net income $ 56,270 $ 42,534 Preferred stock dividends (2,330 ) (2,198 ) Net income available to common equity $ 53,940 $ 40,336 Common shareholder dividends (18,251 ) (16,203 ) Unvested share-based payment awards (117 ) (206 ) Undistributed earnings $ 35,572 $ 23,927 Undistributed earnings allocated to common shareholders 35,294 23,686 Undistributed earnings allocated to unvested share-based payment awards 278 241 Undistributed earnings $ 35,572 $ 23,927 Basic Distributed earnings to common shareholders $ 18,251 $ 16,203 Undistributed earnings allocated to common shareholders 35,294 23,686 Total common shareholders earnings, basic $ 53,545 $ 39,889 Diluted Distributed earnings to common shareholders $ 18,251 $ 16,203 Undistributed earnings allocated to common shareholders 35,294 23,686 Total common shareholders earnings, diluted $ 53,545 $ 39,889 Weighted average common shares outstanding 150,815 148,601 Effect of dilutive common stock awards 3,054 853 Diluted weighted average common shares outstanding 153,869 149,454 Basic earnings per common share $ 0.36 $ 0.27 Diluted earnings per common share $ 0.35 $ 0.27 Anti-dilutive common stock options of approximately 500,000 and 3 million for the three months ended March 31, 2017 and 2016 , respectively, were excluded from the earnings per common share calculation. Warrants to purchase approximately 4 million shares were outstanding for the three months ended March 31, 2016 , 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 | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Stock-Based Compensation | 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 three months of 2017 and full year 2016 . 2017 2016 Dividend yield 2.00 % 2.50 % Risk-free interest rate 2.00 % 2.00 % Weighted average expected volatility 25.00 % 25.00 % Weighted average expected life 5.5 years 5.5 years Weighted average per share fair value of options $5.30 $3.36 A summary of the Corporation’s stock option activity for the three months ended March 31, 2017 is presented below. Stock Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (000s) Outstanding at December 31, 2016 6,357,843 $ 17.67 6.10 $ 47,902 Granted 799,558 $ 25.61 Exercised (1,038,549 ) 16.28 Forfeited or expired (432,001 ) 33.74 Outstanding at March 31, 2017 5,686,851 $ 18.07 7.00 $ 37,180 Options Exercisable at March 31, 2017 3,153,070 $ 16.47 5.59 $ 25,258 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 three months ended March 31, 2017 , the intrinsic value of stock options exercised was approximately $10 million . For the three months ended March 31, 2016, the intrinsic value of the stock options exercised was $420,000 . The total fair value of stock options vested was $3 million for both the three months ended March 31, 2017 and March 31, 2016 . The Corporation recognized compensation expense for the vesting of stock options of $1 million for both the three months ended March 31, 2017 and March 31, 2016. Included in compensation expense for 2017 was approximately $450,000 of expense for the accelerated vesting of stock options granted to retirement eligible colleagues. At March 31, 2017 , the Corporation had $7 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 2020 . The following table summarizes information about the Corporation’s restricted stock activity for the three months ended March 31, 2017 . Restricted Stock Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2016 2,377,380 $ 17.40 Granted 729,135 25.59 Vested (788,033 ) 17.87 Forfeited (52,838 ) 17.92 Outstanding at March 31, 2017 2,265,644 $ 19.86 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 2016 and 2017 will vest ratably over a three year period, while service-based restricted stock awards granted during 2016 and 2017 will vest ratably over a four year period. Expense for restricted stock awards of approximately $7 million were recorded for both the three months ended March 31, 2017 and March 31, 2016. Included in compensation expense for 2017 was approximately $2 million of expense for the accelerated vesting of restricted stock awards granted to retirement eligible colleagues. The Corporation had $30 million of unrecognized compensation costs related to restricted stock awards at March 31, 2017 , that is expected to be recognized over the remaining requisite service periods that extend predominantly through the fourth quarter 2020 . The Corporation has the ability to issue shares from treasury or new shares upon the exercise of stock options or the granting of restricted stock awards. The Board of Directors has authorized management to repurchase shares of the Corporation’s common stock in the market, to be made available for issuance in connection with the Corporation’s employee incentive plans and for other corporate purposes. The repurchase of shares will be based on market and investment opportunities, capital levels, growth prospects, and regulatory constraints. Such repurchases may occur from time to time in open market purchases, block transactions, private transactions, accelerated share repurchase programs, or similar facilities. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Investment securities are generally classified as available for sale or held to maturity at the time of purchase. The majority of the Corporation's investment securities are mortgage-related securities issued by the Government National Mortgage Association (“GNMA”) or government-sponsored enterprises ("GSE") such as the Federal National Mortgage Association (“FNMA”) and the Federal Home Loan Mortgage Corporation (“FHLMC”). The amortized cost and fair values of securities available for sale and held to maturity were as follows. March 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value ($ in Thousands) Investment securities available for sale: U. S. Treasury securities $ 1,004 $ 1 $ — $ 1,005 Residential mortgage-related securities: FNMA / FHLMC 575,826 15,710 (1,117 ) 590,419 GNMA 2,063,054 1,837 (25,065 ) 2,039,826 Private-label 1,118 — (16 ) 1,102 GNMA commercial mortgage-related securities 1,696,287 145 (33,095 ) 1,663,337 Other securities (debt and equity) 4,718 94 (11 ) 4,801 Total investment securities available for sale $ 4,342,007 $ 17,787 $ (59,304 ) $ 4,300,490 Investment securities held to maturity: Obligations of state and political subdivisions (municipal securities) $ 1,131,526 $ 7,150 $ (9,479 ) $ 1,129,197 Residential mortgage-related securities: FNMA / FHLMC 38,829 403 (727 ) 38,505 GNMA 88,256 146 (762 ) 87,640 GNMA commercial mortgage-related securities 296,232 5,005 (6,257 ) 294,980 Total investment securities held to maturity $ 1,554,843 $ 12,704 $ (17,225 ) $ 1,550,322 December 31, 2016 Amortized Gross Gross Fair Value ($ in Thousands) Investment securities available for sale: U. S. Treasury securities $ 1,000 $ — $ — $ 1,000 Residential mortgage-related securities: FNMA / FHLMC 625,234 17,298 (2,602 ) 639,930 GNMA 2,028,301 1,372 (25,198 ) 2,004,475 Private-label 1,134 1 (14 ) 1,121 GNMA commercial mortgage-related securities 2,064,508 356 (35,966 ) 2,028,898 Other securities (debt and equity) 4,718 105 (21 ) 4,802 Total investment securities available for sale $ 4,724,895 $ 19,132 $ (63,801 ) $ 4,680,226 Investment securities held to maturity: Municipal securities $ 1,145,843 $ 3,868 $ (12,036 ) $ 1,137,675 Residential mortgage-related securities: FNMA / FHLMC 37,697 439 (693 ) 37,443 GNMA 89,996 216 (656 ) 89,556 Total investment securities held to maturity $ 1,273,536 $ 4,523 $ (13,385 ) $ 1,264,674 The amortized cost and fair values of investment securities available for sale and held to maturity at March 31, 2017 , 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 $ 3,500 $ 3,489 $ 41,148 $ 32,101 Due after one year through five years 2,204 2,205 252,007 259,468 Due after five years through ten years — — 248,861 250,081 Due after ten years — — 589,510 587,547 Total debt securities 5,704 5,694 1,131,526 1,129,197 Residential mortgage-related securities: FNMA / FHLMC 575,826 590,419 38,829 38,505 GNMA 2,063,054 2,039,826 88,256 87,640 Private-label 1,118 1,102 — — GNMA commercial mortgage-related securities 1,696,287 1,663,337 296,232 294,980 Equity securities 18 112 — — Total investment securities $ 4,342,007 $ 4,300,490 $ 1,554,843 $ 1,550,322 Ratio of Fair Value to Amortized Cost 99.0 % 99.7 % During the first quarter of 2017 , the Corporation reclassified approximately $300 million of GNMA commercial mortgage-related securities from available for sale to held to maturity. The reclassification of these investment securities was accounted for at fair value. Management elected to transfer these investment securities as the Corporation has the positive intent and ability to hold these investment securities to maturity. Management expects to continue transferring investment securities from available for sale to held to maturity throughout 2017. Three Months Ended March 31, 2017 2016 ($ in Thousands) Gross gains $ — $ 3,287 Gross losses — (189 ) Investment securities gains, net $ — $ 3,098 Proceeds from sales of investment securities $ — $ 119,379 Investment securities with a carrying value of approximately $2.1 billion and $1.8 billion at March 31, 2017 , and December 31, 2016 , respectively, were pledged to secure certain deposits or for other purposes as required or permitted by law. The following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at March 31, 2017 . Less than 12 months 12 months or more Total March 31, 2017 Number of Securities Unrealized Losses Fair Value Number of Securities Unrealized Losses Fair Value Unrealized Losses Fair Value ($ in Thousands) Investment securities available for sale: Residential mortgage-related securities: FNMA / FHLMC 13 $ (1,117 ) $ 216,103 — $ — $ — $ (1,117 ) $ 216,103 GNMA 56 (25,065 ) 1,638,688 — — — (25,065 ) 1,638,688 Private-label — — — 1 (16 ) 1,100 (16 ) 1,100 GNMA commercial mortgage-related securities 73 (15,538 ) 1,214,494 19 (17,557 ) 368,724 (33,095 ) 1,583,218 Other securities (debt and equity) 3 (11 ) 1,489 — — — (11 ) 1,489 Total 145 $ (41,731 ) $ 3,070,774 20 $ (17,573 ) $ 369,824 $ (59,304 ) $ 3,440,598 Investment securities held to maturity: Municipal securities 538 $ (9,407 ) $ 342,534 4 $ (72 ) $ 1,778 $ (9,479 ) $ 344,312 Residential mortgage-related securities: FNMA / FHLMC 16 (480 ) 19,969 1 (247 ) 5,785 (727 ) 25,754 GNMA 38 (762 ) 62,494 — — — (762 ) 62,494 GNMA commercial mortgage-related securities 9 (4,369 ) 255,424 2 (1,888 ) 39,556 (6,257 ) 294,980 Total 601 $ (15,018 ) $ 680,421 7 $ (2,207 ) $ 47,119 $ (17,225 ) $ 727,540 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, 2016 . Less than 12 months 12 months or more Total December 31, 2016 Number Unrealized Fair Number Unrealized Fair Unrealized Fair ($ in Thousands) Investment securities available for sale: Residential mortgage-related securities: FNMA / FHLMC 14 $ (2,602 ) $ 244,252 — $ — $ — $ (2,602 ) $ 244,252 GNMA 54 (25,198 ) 1,723,523 — — — (25,198 ) 1,723,523 Private-label — — — 1 (14 ) 1,119 (14 ) 1,119 GNMA commercial mortgage-related securities 74 (16,445 ) 1,427,889 21 (19,521 ) 429,258 (35,966 ) 1,857,147 Other securities (debt and equity) 3 (21 ) 1,479 — — — (21 ) 1,479 Total 145 $ (44,266 ) $ 3,397,143 22 $ (19,535 ) $ 430,377 $ (63,801 ) $ 3,827,520 Investment securities held to maturity: Municipal securities 700 $ (11,937 ) $ 414,186 4 $ (99 ) $ 1,752 $ (12,036 ) $ 415,938 Residential mortgage-related securities: FNMA / FHLMC 14 (441 ) 17,477 1 (252 ) 6,031 (693 ) 23,508 GNMA 39 (656 ) 64,633 — — — (656 ) 64,633 Total 753 $ (13,034 ) $ 496,296 5 $ (351 ) $ 7,783 $ (13,385 ) $ 504,079 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 March 31, 2017 , 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. 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 March 31, 2017 , and December 31, 2016 , the Corporation had FHLB stock of $64 million and $65 million , respectively. The Corporation had Federal Reserve Bank stock of $75 million at both March 31, 2017 and December 31, 2016 , respectively. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Loans | Loans The period end loan composition was as follows. March 31, December 31, ($ in Thousands) Commercial and industrial $ 6,300,646 $ 6,489,014 Commercial real estate — owner occupied 878,391 897,724 Commercial and business lending 7,179,037 7,386,738 Commercial real estate — investor 3,415,355 3,574,732 Real estate construction 1,553,205 1,432,497 Commercial real estate lending 4,968,560 5,007,229 Total commercial 12,147,597 12,393,967 Residential mortgage 6,715,282 6,332,327 Home equity 911,969 934,443 Other consumer 372,835 393,979 Total consumer 8,000,086 7,660,749 Total loans $ 20,147,683 $ 20,054,716 The following table presents commercial and consumer loans by credit quality indicator at March 31, 2017 . Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 5,816,591 $ 100,234 $ 218,930 $ 164,891 $ 6,300,646 Commercial real estate - owner occupied 793,177 8,295 58,994 17,925 878,391 Commercial and business lending 6,609,768 108,529 277,924 182,816 7,179,037 Commercial real estate - investor 3,336,105 21,760 49,217 8,273 3,415,355 Real estate construction 1,541,779 38 10,141 1,247 1,553,205 Commercial real estate lending 4,877,884 21,798 59,358 9,520 4,968,560 Total commercial 11,487,652 130,327 337,282 192,336 12,147,597 Residential mortgage 6,658,070 874 2,155 54,183 6,715,282 Home equity 897,452 1,085 220 13,212 911,969 Other consumer 372,064 511 — 260 372,835 Total consumer 7,927,586 2,470 2,375 67,655 8,000,086 Total $ 19,415,238 $ 132,797 $ 339,657 $ 259,991 $ 20,147,683 The following table presents commercial and consumer loans by credit quality indicator at December 31, 2016 . Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 5,937,119 $ 141,328 $ 227,196 $ 183,371 $ 6,489,014 Commercial real estate - owner occupied 805,871 17,785 64,524 9,544 897,724 Commercial and business lending 6,742,990 159,113 291,720 192,915 7,386,738 Commercial real estate - investor 3,491,217 14,236 51,228 18,051 3,574,732 Real estate construction 1,429,083 105 2,465 844 1,432,497 Commercial real estate lending 4,920,300 14,341 53,693 18,895 5,007,229 Total commercial 11,663,290 173,454 345,413 211,810 12,393,967 Residential mortgage 6,275,162 1,314 5,615 50,236 6,332,327 Home equity 919,740 1,588 114 13,001 934,443 Other consumer 393,161 562 — 256 393,979 Total consumer 7,588,063 3,464 5,729 63,493 7,660,749 Total $ 19,251,353 $ 176,918 $ 351,142 $ 275,303 $ 20,054,716 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 are reviewed at a minimum on a quarterly basis, while pass and performing 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 March 31, 2017 . 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 $ 6,133,822 $ 752 $ 923 $ 258 $ 164,891 $ 6,300,646 Commercial real estate - owner occupied 859,496 500 470 — 17,925 878,391 Commercial and business lending 6,993,318 1,252 1,393 258 182,816 7,179,037 Commercial real estate - investor 3,405,960 920 202 — 8,273 3,415,355 Real estate construction 1,551,527 393 38 — 1,247 1,553,205 Commercial real estate lending 4,957,487 1,313 240 — 9,520 4,968,560 Total commercial 11,950,805 2,565 1,633 258 192,336 12,147,597 Residential mortgage 6,653,856 4,238 3,005 — 54,183 6,715,282 Home equity 894,245 3,406 1,106 — 13,212 911,969 Other consumer 369,455 1,013 645 1,462 260 372,835 Total consumer 7,917,556 8,657 4,756 1,462 67,655 8,000,086 Total $ 19,868,361 $ 11,222 $ 6,389 $ 1,720 $ 259,991 $ 20,147,683 (a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at March 31, 2017 (the same as the reported balances for the accruing loans noted above). (b) Of the total nonaccrual loans, $194 million or 75% were current with respect to payment at March 31, 2017 . The following table presents loans by past due status at December 31, 2016 . Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (a) Nonaccrual (b) Total ($ in Thousands) Commercial and industrial $ 6,303,994 $ 965 $ 448 $ 236 $ 183,371 $ 6,489,014 Commercial real estate - owner occupied 886,796 968 416 — 9,544 897,724 Commercial and business lending 7,190,790 1,933 864 236 192,915 7,386,738 Commercial real estate - investor 3,555,750 431 500 — 18,051 3,574,732 Real estate construction 1,431,284 264 105 — 844 1,432,497 Commercial real estate lending 4,987,034 695 605 — 18,895 5,007,229 Total commercial 12,177,824 2,628 1,469 236 211,810 12,393,967 Residential mortgage 6,273,949 7,298 844 — 50,236 6,332,327 Home equity 915,593 4,265 1,584 — 13,001 934,443 Other consumer 389,157 2,471 718 1,377 256 393,979 Total consumer 7,578,699 14,034 3,146 1,377 63,493 7,660,749 Total $ 19,756,523 $ 16,662 $ 4,615 $ 1,613 $ 275,303 $ 20,054,716 (a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at December 31, 2016 (the same as the reported balances for the accruing loans noted above). (b) Of the total nonaccrual loans, $224 million or 81% were current with respect to payment at December 31, 2016 . The following table presents impaired loans at March 31, 2017 . Recorded Unpaid Related Average Interest ($ in Thousands) Loans with a related allowance Commercial and industrial $ 124,408 $ 135,061 $ 26,686 $ 130,361 $ 305 Commercial real estate — owner occupied 14,918 16,833 1,766 15,045 113 Commercial and business lending 139,326 151,894 28,452 145,406 418 Commercial real estate — investor 16,018 16,497 319 16,060 371 Real estate construction 1,349 1,663 533 1,369 32 Commercial real estate lending 17,367 18,160 852 17,429 403 Total commercial 156,693 170,054 29,304 162,835 821 Residential mortgage 66,221 71,013 11,860 66,495 588 Home equity 20,775 22,958 9,528 20,964 250 Other consumer 1,301 1,327 192 1,309 6 Total consumer 88,297 95,298 21,580 88,768 844 Total loans (a) $ 244,990 $ 265,352 $ 50,884 $ 251,603 $ 1,665 Loans with no related allowance Commercial and industrial $ 71,335 $ 75,212 $ — $ 73,314 $ 93 Commercial real estate — owner occupied 8,539 9,409 — 8,582 — Commercial and business lending 79,874 84,621 — 81,896 93 Commercial real estate — investor 6,818 7,219 — 6,853 — Real estate construction 225 225 — 225 — Commercial real estate lending 7,043 7,444 — 7,078 — Total commercial 86,917 92,065 — 88,974 93 Residential mortgage 6,497 7,521 — 6,507 68 Home equity 646 650 — 647 — Other consumer — — — — — Total consumer 7,143 8,171 — 7,154 68 Total loans (a) $ 94,060 $ 100,236 $ — $ 96,128 $ 161 Total Commercial and industrial $ 195,743 $ 210,273 $ 26,686 $ 203,675 $ 398 Commercial real estate — owner occupied 23,457 26,242 1,766 23,627 113 Commercial and business lending 219,200 236,515 28,452 227,302 511 Commercial real estate — investor 22,836 23,716 319 22,913 371 Real estate construction 1,574 1,888 533 1,594 32 Commercial real estate lending 24,410 25,604 852 24,507 403 Total commercial 243,610 262,119 29,304 251,809 914 Residential mortgage 72,718 78,534 11,860 73,002 656 Home equity 21,421 23,608 9,528 21,611 250 Other consumer 1,301 1,327 192 1,309 6 Total consumer 95,440 103,469 21,580 95,922 912 Total loans (a) $ 339,050 $ 365,588 $ 50,884 $ 347,731 $ 1,826 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 79% of the unpaid principal balance at March 31, 2017 . The following table presents impaired loans at December 31, 2016 . Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ in Thousands) Loans with a related allowance Commercial and industrial $ 101,770 $ 107,813 $ 21,617 $ 111,211 $ 2,512 Commercial real estate — owner occupied 6,595 8,641 295 7,111 274 Commercial and business lending 108,365 116,454 21,912 118,322 2,786 Commercial real estate — investor 27,196 27,677 3,541 31,142 2,124 Real estate construction 1,203 1,566 441 1,321 67 Commercial real estate lending 28,399 29,243 3,982 32,463 2,191 Total commercial 136,764 145,697 25,894 150,785 4,977 Residential mortgage 62,362 67,090 11,091 63,825 2,263 Home equity 20,651 22,805 9,312 21,825 1,114 Other consumer 1,235 1,284 186 1,294 29 Total consumer 84,248 91,179 20,589 86,944 3,406 Total loans (a) $ 221,012 $ 236,876 $ 46,483 $ 237,729 $ 8,383 Loans with no related allowance Commercial and industrial $ 113,485 $ 134,863 $ — $ 117,980 $ 1,519 Commercial real estate — owner occupied 8,439 9,266 — 8,759 138 Commercial and business lending 121,924 144,129 — 126,739 1,657 Commercial real estate — investor 6,144 6,478 — 7,092 — Real estate construction — — — — — Commercial real estate lending 6,144 6,478 — 7,092 — Total commercial 128,068 150,607 — 133,831 1,657 Residential mortgage 5,974 6,998 — 6,610 184 Home equity 106 107 — 107 4 Other consumer — — — — — Total consumer 6,080 7,105 — 6,717 188 Total loans (a) $ 134,148 $ 157,712 $ — $ 140,548 $ 1,845 Total Commercial and industrial $ 215,255 $ 242,676 $ 21,617 $ 229,191 $ 4,031 Commercial real estate — owner occupied 15,034 17,907 295 15,870 412 Commercial and business lending 230,289 260,583 21,912 245,061 4,443 Commercial real estate — investor 33,340 34,155 3,541 38,234 2,124 Real estate construction 1,203 1,566 441 1,321 67 Commercial real estate lending 34,543 35,721 3,982 39,555 2,191 Total commercial 264,832 296,304 25,894 284,616 6,634 Residential mortgage 68,336 74,088 11,091 70,435 2,447 Home equity 20,757 22,912 9,312 21,932 1,118 Other consumer 1,235 1,284 186 1,294 29 Total consumer 90,328 98,284 20,589 93,661 3,594 Total loans (a) $ 355,160 $ 394,588 $ 46,483 $ 378,277 $ 10,228 (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 December 31, 2016 . Troubled Debt Restructurings (“Restructured Loans”) Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. The Corporation had a recorded investment of approximately $55 million in loans modified in troubled debt restructurings for the three months ended March 31, 2017 , of which approximately $1 million was in accrual status and $54 million was in nonaccrual pending a sustained period of repayment. At March 31, 2017 the commercial and industrial nonaccrual restructured loans increased primarily due to the restructuring of several large oil and gas loans. These loans were included in nonaccrual loans at both March 31, 2017 and December 31, 2016 . The following table presents nonaccrual and performing restructured loans by loan portfolio. March 31, 2017 December 31, 2016 Performing Restructured Loans Nonaccrual Restructured Loans (a) Performing Restructured Loans Nonaccrual Restructured Loans (a) ($ in Thousands) Commercial and industrial $ 30,852 $ 52,079 $ 31,884 $ 1,276 Commercial real estate — owner occupied 5,532 2,148 5,490 2,220 Commercial real estate — investor 14,563 1,643 15,289 924 Real estate construction 327 170 359 150 Residential mortgage 18,535 20,457 18,100 21,906 Home equity 8,209 2,379 7,756 2,877 Other consumer 1,041 26 979 32 Total $ 79,059 $ 78,902 $ 79,857 $ 29,385 (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 three months ended March 31, 2017 and 2016 , respectively, and the recorded investment and unpaid principal balance as of March 31, 2017 and 2016 respectively. Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 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 20 $ 52,326 $ 60,546 7 $ 1,483 $ 1,522 Commercial real estate — owner occupied 1 204 204 1 125 130 Commercial real estate — investor 1 733 744 — — — Real estate construction — — — 1 10 55 Residential mortgage 16 1,301 1,322 30 2,062 2,124 Home equity 15 347 347 20 818 879 Total 53 $ 54,911 $ 63,163 59 $ 4,498 $ 4,710 (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 three months ended March 31, 2017 , restructured loan modifications of commercial and industrial, commercial real estate, and real estate construction loans primarily included maturity date extensions and payment schedule modifications. 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 three months ended March 31, 2017 . The following table provides the number of loans modified in a troubled debt restructuring during the previous twelve months which subsequently defaulted during the three months ended March 31, 2017 and 2016 , respectively, as well as the recorded investment in these restructured loans as of March 31, 2017 and 2016 , respectively. Three Months Ended March 31, 2017 Three Month Ended March 31, 2016 Number of Loans Recorded Investment Number of Loans Recorded Investment ($ in Thousands) Real estate construction — $ — 1 $ 10 Residential mortgage 6 383 7 1,151 Home equity 2 26 8 153 Total 8 $ 409 16 $ 1,314 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. Allowance for Credit Losses A summary of the changes in the allowance for loan losses by portfolio segment for the three months ended March 31, 2017 , 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, 2016 $ 140,126 $ 14,034 $ 45,285 $ 26,932 $ 27,046 $ 20,364 $ 4,548 $ 278,335 Charge offs (9,359 ) (5 ) (633 ) (23 ) (297 ) (509 ) (1,028 ) (11,854 ) Recoveries 4,991 24 119 34 169 682 172 6,191 Net charge offs (4,368 ) 19 (514 ) 11 (128 ) 173 (856 ) (5,663 ) Provision for loan losses 10,509 (2,841 ) (3,406 ) 1,825 3,370 (223 ) 766 10,000 March 31, 2017 $ 146,267 $ 11,212 $ 41,365 $ 28,768 $ 30,288 $ 20,314 $ 4,458 $ 282,672 Allowance for loan losses: Individually evaluated for impairment $ 25,915 $ 1,541 $ 99 $ — $ 810 $ — $ — $ 28,365 Collectively evaluated for impairment 120,352 9,671 41,266 28,768 29,478 20,314 4,458 254,307 Total allowance for loan losses $ 146,267 $ 11,212 $ 41,365 $ 28,768 $ 30,288 $ 20,314 $ 4,458 $ 282,672 Loans: Individually evaluated for impairment $ 162,788 $ 17,098 $ 7,615 $ 225 $ 11,086 $ 647 $ — $ 199,459 Collectively evaluated for impairment 6,137,858 861,293 3,407,740 1,552,980 6,704,196 911,322 372,835 19,948,224 Total loans $ 6,300,646 $ 878,391 $ 3,415,355 $ 1,553,205 $ 6,715,282 $ 911,969 $ 372,835 $ 20,147,683 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, 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 (71,016 ) (512 ) (1,504 ) (558 ) (4,332 ) (4,686 ) (3,831 ) (86,439 ) Recoveries 14,543 74 1,624 203 755 3,491 820 21,510 Net charge offs (56,473 ) (438 ) 120 (355 ) (3,577 ) (1,195 ) (3,011 ) (64,929 ) Provision for loan losses 66,640 (4,208 ) 2,147 2,021 2,362 (1,996 ) 2,034 69,000 December 31, 2016 $ 140,126 $ 14,034 $ 45,285 $ 26,932 $ 27,046 $ 20,364 $ 4,548 $ 278,335 Allowance for loan losses: Individually evaluated for impairment $ 20,836 $ — $ 3,117 $ — $ 147 $ 3 $ — $ 24,103 Collectively evaluated for impairment 119,290 14,034 42,168 26,932 26,899 20,361 4,548 254,232 Total allowance for loan losses $ 140,126 $ 14,034 $ 45,285 $ 26,932 $ 27,046 $ 20,364 $ 4,548 $ 278,335 Loans: Individually evaluated for impairment $ 180,965 $ 8,439 $ 17,322 $ — $ 7,033 $ 650 $ — $ 214,409 Collectively evaluated for impairment 6,308,049 889,285 3,557,410 1,432,497 6,325,294 933,793 393,979 19,840,307 Total loans $ 6,489,014 $ 897,724 $ 3,574,732 $ 1,432,497 $ 6,332,327 $ 934,443 $ 393,979 $ 20,054,716 A summary of the changes in the allowance for unfunded commitments was as follows. Three Months Ended March 31, 2017 Year Ended December 31, 2016 ($ in Thousands) Allowance for Unfunded Commitments: Balance at beginning of period $ 25,400 $ 24,400 Provision for unfunded commitments (1,000 ) 1,000 Balance at end of period $ 24,400 $ 25,400 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
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 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 2016 or the first three months of 2017 . At both March 31, 2017 and December 31, 2016 , the Corporation had goodwill of $972 million . Goodwill increased minimally by approximately $55,000 during the first quarter of 2017 as a result of a small insurance acquisition. 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. During the first quarter of 2017, the Corporation added approximately $162,000 of other intangibles relating to customer relationships associated with one small insurance acquisition. See Note 2 for additional information on the Corporation's acquisitions. For core deposit intangibles and other intangibles, changes in the gross carrying amount, accumulated amortization, and net book value were as follows. Three Months Ended March 31, 2017 Year Ended December 31, 2016 ($ in Thousands) Core deposit intangibles: Gross carrying amount $ 4,385 $ 4,385 Accumulated amortization (4,340 ) (4,273 ) Net book value $ 45 $ 112 Amortization during the year $ 67 $ 281 Other intangibles: Gross carrying amount $ 32,572 $ 32,410 Accumulated amortization (17,591 ) (17,145 ) Net book value $ 14,981 $ 15,265 Additions during the period $ 162 $ 1,012 Amortization during the year $ 446 $ 1,812 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. The Corporation periodically evaluates its mortgage servicing rights asset for impairment. 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. Three Months Ended March 31, 2017 Year Ended December 31, 2016 ($ in Thousands) Mortgage servicing rights Mortgage servicing rights at beginning of period $ 62,085 $ 62,150 Additions 1,920 12,262 Amortization (2,477 ) (12,327 ) Mortgage servicing rights at end of period $ 61,528 $ 62,085 Valuation allowance at beginning of period (609 ) (809 ) (Additions) recoveries, net (217 ) 200 Valuation allowance at end of period (826 ) (609 ) Mortgage servicing rights, net $ 60,702 $ 61,476 Fair value of mortgage servicing rights $ 68,037 $ 73,149 Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) $ 7,908,799 $ 7,974,742 Mortgage servicing rights, net to servicing portfolio 0.77 % 0.77 % Mortgage servicing rights expense (a) $ 2,694 $ 12,127 (a) 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 March 31, 2017 . 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) Nine months ending December 31, 2017 $ 45 $ 1,351 $ 7,275 2018 — 1,771 8,389 2019 — 1,472 7,100 2020 — 1,355 6,025 2021 — 1,331 5,128 2022 — 1,308 4,385 Beyond 2022 — 6,393 23,226 Total Estimated Amortization Expense $ 45 $ 14,981 $ 61,528 |
Short and Long-Term Funding
Short and Long-Term Funding | 3 Months Ended |
Mar. 31, 2017 | |
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. March 31, 2017 December 31, 2016 ($ in Thousands) Short-Term Funding Federal funds purchased $ 323,365 $ 208,150 Securities sold under agreements to repurchase 326,823 300,197 Federal funds purchased and securities sold under agreements to repurchase $ 650,188 $ 508,347 FHLB advances 309,000 482,000 Commercial paper 121,679 101,688 Other short-term funding 430,679 583,688 Total short-term funding $ 1,080,867 $ 1,092,035 Long-Term Funding FHLB advances $ 2,265,180 $ 2,265,188 Senior notes, at par 250,000 250,000 Subordinated notes, at par 250,000 250,000 Other long-term funding and capitalized costs (3,225 ) (3,393 ) Total long-term funding 2,761,955 2,761,795 Total short and long-term funding $ 3,842,822 $ 3,853,830 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 March 31, 2017 , the Corporation pledged agency mortgage-related securities with a fair value of $481 million as collateral for the repurchase agreements. Securities pledged as collateral under repurchase agreements are maintained with the Corporation's safekeeping agents and are monitored on a daily basis due to the market risk of fair value changes in the underlying securities. The Corporation generally pledges excess securities to ensure there is sufficient collateral to satisfy short-term fluctuations in both the repurchase agreement balances and the fair value of the underlying securities. The remaining contractual maturity of the securities sold under agreements to repurchase in the consolidated balance sheets as of March 31, 2017 and December 31, 2016 are presented in the following table. Remaining Contractual Maturity of the Agreements March 31, 2017 Overnight and Continuous Up to 30 days 30-90 days Greater than 90 days Total ($ in Thousands) Repurchase agreements Agency mortgage-related securities $ 326,823 $ — $ — $ — $ 326,823 Total $ 326,823 $ — $ — $ — $ 326,823 December 31, 2016 Repurchase agreements Agency mortgage-related securities $ 300,197 $ — $ — $ — $ 300,197 Total $ 300,197 $ — $ — $ — $ 300,197 Long-Term Funding FHLB advances: At March 31, 2017 , the long-term FHLB advances had a weighted average interest rate of 0.68% , compared to 0.50% at December 31, 2016 . 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. 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. 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 | 3 Months Ended |
Mar. 31, 2017 | |
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 $25 million of investment securities as collateral at March 31, 2017 , and pledged $40 million of investment securities as collateral at December 31, 2016 . 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 March 31, 2017 and December 31, 2016 the Corporation posted no cash collateral for the margin. Derivatives to Accommodate Customer Needs The Corporation enters into various derivative contracts which are designated as free standing derivative contracts. Free standing derivative products are entered into primarily for the benefit of commercial customers seeking to manage their exposures to interest rate risk, foreign currency, and commodity prices. 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 forward 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 exchange 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. Commodity 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. The table below identifies the balance sheet category and fair values of the Corporation’s free standing derivative instruments, which are not designated as hedging instruments. March 31, 2017 December 31, 2016 ($ in Thousands) Notional Amount Fair Value Balance Sheet Category Notional Amount Fair Balance Sheet Interest rate-related instruments — customer and mirror $ 2,098,658 $ 31,841 Trading assets $ 2,039,323 $ 33,671 Trading assets Interest rate-related instruments — customer and mirror 2,098,658 (31,113 ) Trading liabilities 2,039,323 (33,188 ) Trading liabilities Foreign currency exchange forwards 83,012 812 Trading assets 109,675 2,002 Trading assets Foreign currency exchange forwards 80,227 (774 ) Trading liabilities 106,251 (1,943 ) Trading liabilities Commodity contracts 301,425 16,653 Trading assets 127,582 16,725 Trading assets Commodity contracts 300,011 (15,674 ) Trading liabilities 128,368 (15,972 ) 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. March 31, 2017 December 31, 2016 ($ in Thousands) Notional Amount Fair Balance Sheet Notional Amount Fair Balance Sheet Interest rate lock commitments (mortgage) 291,674 1,803 Other assets 285,345 206 Other assets Forward commitments (mortgage) 100,750 (373 ) Other liabil ities 179,600 2,908 Other assets Purchased options (time deposit) 80,116 2,290 Other assets 80,554 2,576 Other assets Written options (time deposit) 80,116 (2,290 ) Other liabilities 80,554 (2,576 ) 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 Three Months Ended March 31, ($ in Thousands) 2017 2016 Derivative Instruments: Interest rate-related instruments — customer and mirror, net Capital market fees, net $ 245 $ (870 ) Interest rate lock commitments (mortgage) Mortgage banking, net 1,597 1,731 Forward commitments (mortgage) Mortgage banking, net (3,281 ) (2,135 ) Foreign currency exchange forwards Capital market fees, net (21 ) (28 ) Commodity contracts Capital market fees, net 226 — |
Balance Sheet Offsetting
Balance Sheet Offsetting | 3 Months Ended |
Mar. 31, 2017 | |
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) March 31, 2017 Derivative assets: Interest and commodity agreements $ 23,374 $ — $ 23,374 $ (19,022 ) $ (4,352 ) $ — Derivative liabilities: Interest and commodity agreements $ 19,022 $ — $ 19,022 $ (19,022 ) $ — $ — December 31, 2016 Derivative assets: Interest and commodity agreements $ 18,031 $ — $ 18,031 $ (18,031 ) $ — $ — Derivative liabilities: Interest and commodity agreements $ 31,075 $ — $ 31,075 $ (18,031 ) $ (11,148 ) $ 1,896 |
Commitments, Off-Balance Sheet
Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings | 3 Months Ended |
Mar. 31, 2017 | |
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. March 31, 2017 December 31, 2016 ($ in Thousands) Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale (a)(b) $ 8,041,839 $ 8,131,131 Commercial letters of credit (a) 7,490 7,923 Standby letters of credit (c) 268,612 259,632 (a) 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 March 31, 2017 or December 31, 2016 . (b) Interest rate lock commitments to originate residential mortgage loans held for sale are considered derivative instruments and are disclosed in Note 10 . (c) The Corporation has established a liability of $3 million at both March 31, 2017 and December 31, 2016 , 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 totaled $24 million at March 31, 2017 compared to $25 million at December 31, 2016 , 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 March 31, 2017 , was $111 million , compared to $85 million at December 31, 2016 , included in other assets on the consolidated balance sheets. Related to these investments, the Corporation had remaining commitments to fund of $80 million at March 31, 2017 , and $69 million at December 31, 2016 . 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. On January 31, 2017, the District Court granted the Bank’s motion for summary judgment. The receiver has appealed the District Court’s summary judgment decision to the Eighth Circuit Court of Appeals. 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. Beginning in late 2013, the Corporation began reviewing a variety of legacy products provided by third parties, including debt protection and identity protection products. In connection with this review, the Corporation has made, and plans to make, remediation payments to affected customers and former customers, and has reserved accordingly. A variety of consumer products, including the legacy debt protection and identity protection products referred to above, 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 $112,000 and $2 million during the three months ended March 31, 2017 and the year ended December 31, 2016 , respectively. The loss reimbursement and settlement claims paid for the three months ended March 31, 2017 and the year ended December 31, 2016 , respectively were negligible. Make whole requests during 2016 and the first three months of 2017 generally arose from loans sold during the period of January 1, 2012 to March 31, 2017 , which total $9.4 billion at the time of sale, and consisted primarily of loans sold to GSEs. As of March 31, 2017 , approximately $6.1 billion of these sold loans remain outstanding. The balance in the mortgage repurchase reserve at the balance sheet date reflects the estimated amount of potential loss the Corporation could incur from repurchasing a loan, as well as loss reimbursements, indemnifications, and other settlement resolutions. The following summarizes the changes in the mortgage repurchase reserve. Three Months Ended March 31, 2017 Year Ended December 31, 2016 ($ in Thousands) Balance at beginning of period $ 900 $ 1,197 Repurchase provision expense 59 456 Adjustments to provision expense — (750 ) Charge offs, net — (3 ) Balance at end of period $ 959 $ 900 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 March 31, 2017 , and December 31, 2016 , there were approximately $45 million and $62 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 March 31, 2017 and December 31, 2016 , there were $92 million and $98 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 | 3 Months Ended |
Mar. 31, 2017 | |
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. Residential loans held for sale: Loans held for sale, which consist generally of current production of certain fixed-rate, first-lien residential mortgage loans, are now carried at estimated fair value. Effective January 1, 2017, management elected the fair value option to account for all newly originated mortgage loans held for sale which results in the financial impact of changing market conditions being reflected currently in earnings as opposed to being dependent upon the timing of sales. Therefore, the continually adjusted values going forward will better reflect the price the Corporation expects to receive from the sale of such loans. 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 fair value measurement. 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 measurements 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 March 31, 2017 , and December 31, 2016 , 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. The table below presents the Corporation’s financial instruments measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 , aggregated by the level in the fair value hierarchy within which those measurements fall. Fair Value Hierarchy March 31, 2017 December 31, 2016 ($ in Thousands) Assets: Investment securities available for sale: U.S. Treasury securities Level 1 $ 1,005 $ 1,000 Residential mortgage-related securities: FNMA / FHLMC Level 2 590,419 639,930 GNMA Level 2 2,039,826 2,004,475 Private-label Level 2 1,102 1,121 GNMA commercial mortgage-related securities Level 2 1,663,337 2,028,898 Other securities (debt and equity) Level 1 1,601 1,602 Other securities (debt and equity) Level 2 3,200 3,000 Other securities (debt and equity) Level 3 — 200 Total investment securities available for sale Level 1 2,606 2,602 Total investment securities available for sale Level 2 4,297,884 4,677,424 Total investment securities available for sale Level 3 — 200 Residential loans held for sale (a) Level 2 34,051 — Interest rate-related instruments Level 2 31,841 33,671 Foreign currency exchange forwards Level 2 812 2,002 Interest rate lock commitments to originate residential mortgage loans held for sale Level 3 1,803 206 Forward commitments to sell residential mortgage loans Level 3 — 2,908 Commodity contracts Level 2 16,653 16,725 Purchased options (time deposit) Level 2 2,290 2,576 Liabilities: Interest rate-related instruments Level 2 $ 31,113 $ 33,188 Foreign currency exchange forwards Level 2 774 1,943 Forward commitments to sell residential mortgage loans Level 3 373 — Commodity contracts Level 2 15,674 15,972 Written options (time deposit) Level 2 2,290 2,576 (a) Effective January 1, 2017, residential loans originated for sale are accounted for under the fair value option. Prior periods have not been restated. For more information on this accounting policy change, please refer to Note 3 to the Notes to the Consolidated Financial Statements. The table below presents a rollforward of the balance sheet amounts for the three months ended March 31, 2017 and the year ended December 31, 2016 , 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, 2015 $ 200 $ 1,361 Total net gains included in income: Mortgage derivative gain — 1,753 Balance December 31, 2016 $ 200 $ 3,114 Total net losses included in income: Mortgage derivative loss — (1,684 ) Transfer out of level 3 securities (a) (200 ) — Balance March 31, 2017 $ — $ 1,430 (a) During the first quarter of 2017, the $200,000 level 3 investment security was transferred to level 2 based upon new pricing information. For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of March 31, 2017 , 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 fair value is determined by the change in value from each loan’s rate lock date to the expected rate lock expiration date based on the underlying loan attributes, estimated closing ratios, and investor price matrix determined to be reasonably applicable to each loan commitment. The closing ratio calculation takes into consideration historical experience and loan-level attributes, 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 March 31, 2017 , the closing ratio was 90% . Derivative financial instruments (mortgage derivative—forward commitments to sell mortgage loans): Mortgage derivatives include forward commitments do deliver closed end residential mortgage loans into conforming Agency Mortgage Backed Securities (To be Announced, "TBA") or conforming Cash Forward sales. The fair value of such instruments is determined by the difference of current market prices for such traded instruments or available from forward cash delivery commitments and the original traded price for such commitments. 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. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis 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. Commercial loans held for sale: Loans held for sale 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. Other real estate owned: 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. For Level 3, assets and liabilities measured at fair value on a nonrecurring basis as of March 31, 2017 , the Corporation utilized the following valuation techniques and significant unobservable inputs. 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. 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% or less. See Note 7 Loans 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. 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 10.9% and 10.6% at March 31, 2017 , 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. See Note 8 for additional disclosure regarding the Corporation’s mortgage servicing rights. 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, aggregated by the level in the fair value hierarchy within which those measurements fall. Income Statement Category of Adjustment Recognized in Income ($ in Thousands) Fair Value Hierarchy Fair Value March 31, 2017 Assets: Commercial loans held for sale (a) Level 2 $ 2,901 Provision for credit losses $ — Impaired loans (c) Level 3 93,552 Provision for credit losses (25,785 ) Other real estate owned Level 2 921 Foreclosure / OREO expense, net (583 ) Mortgage servicing rights Level 3 68,037 Mortgage banking, net (217 ) December 31, 2016 Assets: Commercial loans held for sale Level 2 $ 12,474 Provision for credit losses $ (559 ) Residential loans held for sale (b) Level 2 108,010 Mortgage banking, net (3,760 ) Impaired loans (c) Level 3 79,270 Provision for credit losses (75,194 ) Other real estate owned Level 2 9,752 Foreclosure / OREO expense, net (1,091 ) Mortgage servicing rights Level 3 73,149 Mortgage banking, net 200 (a) Commercial loans held for sale are carried at the lower of cost or estimated fair value. At March 31, 2017 , the estimated fair value exceeded the cost and therefore there was no adjustment recognized in Income. (b) Effective January 1, 2017, residential loans originated for sale are accounted for under the fair value option. Prior periods have not been restated. For more information on this accounting policy change, please refer to Note 3 to the Notes to the Consolidated Financial Statements. (c) Represents individually evaluated impaired loans, net of the related allowance for loan losses. Certain nonfinancial assets and nonfinancial liabilities measured at fair value on a nonrecurring basis include the fair value analysis 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. 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. March 31, 2017 December 31, 2016 Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value ($ in Thousands) Financial assets: Cash and due from banks Level 1 $ 332,601 $ 332,601 $ 446,558 $ 446,558 Interest-bearing deposits in other financial institutions Level 1 337,167 337,167 149,175 149,175 Federal funds sold and securities purchased under agreements to resell Level 1 19,700 19,700 46,500 46,500 Investment securities held to maturity Level 2 1,554,843 1,550,322 1,273,536 1,264,674 Investment securities available for sale Level 1 2,606 2,606 2,602 2,602 Investment securities available for sale Level 2 4,297,884 4,297,884 4,677,424 4,677,424 Investment securities available for sale Level 3 — — 200 200 FHLB and Federal Reserve Bank stocks Level 2 139,273 139,273 140,001 140,001 Commercial loans held for sale Level 2 2,901 2,901 12,474 12,474 Residential loans held for sale Level 2 34,051 34,051 108,010 108,010 Loans, net Level 3 19,865,011 19,752,810 19,776,381 19,680,317 Bank owned life insurance Level 2 587,600 587,600 585,290 585,290 Derivatives (trading and other assets) Level 2 51,596 51,596 54,974 54,974 Derivatives (trading and other assets) Level 3 1,803 1,803 3,114 3,114 Financial liabilities: Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts Level 3 $ 20,213,126 $ 20,213,126 $ 20,282,321 $ 20,282,321 Brokered CDs and other time deposits Level 2 1,614,909 1,614,909 1,606,127 1,606,127 Short-term funding Level 2 1,080,867 1,080,867 1,092,035 1,092,035 Long-term funding Level 2 2,761,955 2,790,093 2,761,795 2,791,841 Standby letters of credit (a) Level 2 2,648 2,648 2,566 2,566 Derivatives (trading and other liabilities) Level 2 49,851 49,851 53,679 53,679 Derivatives (trading and other liabilities) Level 3 373 373 — — (a) The commitment on standby letters of credit was $269 million and $260 million at March 31, 2017 and December 31, 2016 , 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 Federal Home Loan Bank stocks given their “restricted” nature (i.e., the stock can only be sold back to the respective institutions (Federal Home Loan Bank 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 residential 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 ("BOLI"): The fair value of BOLI 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 | 3 Months Ended |
Mar. 31, 2017 | |
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 legacy healthcare access to a limited group of retired employees from a previous acquisition in the Postretirement Plan. There are no other active retiree healthcare plans. The components of net periodic benefit cost for the RAP and Postretirement Plans for three months ended March 31, 2017 and 2016 were as follows. Three Months Ended March 31, 2017 2016 ($ in Thousands) Components of Net Periodic Benefit Cost Pension Plan: Service cost $ 1,781 $ 1,725 Interest cost 1,756 1,780 Expected return on plan assets (4,881 ) (5,065 ) Amortization of prior service cost (19 ) 13 Amortization of actuarial loss 488 482 Total net pension cost $ (875 ) $ (1,065 ) Postretirement Plan: Interest cost $ 24 $ 36 Amortization of prior service cost (19 ) — Total net periodic benefit cost $ 5 $ 36 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2017 | |
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 2016 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. 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 2016 Annual Report on Form 10-K to assess the overall appropriateness of the allowance for loan losses. 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 2016 Annual Report on Form 10-K. 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 Three Months Ended March 31, 2017 Net interest income $ 89,388 $ 88,928 $ 1,958 $ 180,274 Noninterest income 11,993 64,870 2,968 79,831 Total revenue 101,381 153,798 4,926 260,105 Credit provision* 11,580 4,507 (7,087 ) 9,000 Noninterest expense 37,479 116,097 20,115 173,691 Income (loss) before income taxes 52,322 33,194 (8,102 ) 77,414 Income tax expense (benefit) 17,649 11,618 (8,123 ) 21,144 Net income $ 34,673 $ 21,576 $ 21 $ 56,270 Return on average allocated capital (ROCET1)** 12.6 % 15.2 % (2.5 )% 10.6 % Three Months Ended March 31, 2016 Net interest income $ 79,164 $ 85,605 $ 7,218 $ 171,987 Noninterest income 11,613 63,748 7,831 83,192 Total revenue 90,777 149,353 15,049 255,179 Credit provision* 12,739 6,142 1,119 20,000 Noninterest expense 34,403 121,295 18,273 173,971 Income (loss) before income taxes 43,635 21,916 (4,343 ) 61,208 Income tax expense (benefit) 14,579 7,670 (3,575 ) 18,674 Net income (loss) $ 29,056 $ 14,246 $ (768 ) $ 42,534 Return on average allocated capital (ROCET1)** 11.3 % 9.1 % (5.0 )% 8.6 % Segment Balance Sheet Data ($ in Thousands) Corporate and Commercial Specialty Community, Consumer, and Business Risk Management and Shared Services Consolidated Total Three Months Ended March 31, 2017 Average earning assets $ 10,759,811 $ 9,130,457 $ 6,449,046 $ 26,339,314 Average loans 10,753,314 9,128,656 190,755 20,072,725 Average deposits 6,420,401 11,337,064 3,708,257 21,465,722 Average allocated capital (CET1)** $ 1,114,610 $ 576,464 $ 370,675 $ 2,061,749 Three Months Ended March 31, 2016 Average earning assets $ 9,720,028 $ 9,120,319 $ 6,432,026 $ 25,272,373 Average loans 9,711,221 9,119,020 92,589 18,922,830 Average deposits 5,918,341 11,100,195 3,556,638 20,575,174 Average allocated capital (CET1)** $ 1,031,659 $ 627,211 $ 237,611 $ 1,896,481 * The consolidated credit provision is equal to the actual reported provision for credit losses. ** The Federal Reserve establishes capital adequacy requirements for the Corporation, including common equity Tier 1. For segment reporting purposes, the ROCET1 reflects return on average allocated common equity Tier 1. 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) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and 2016 , changes during the three month periods then ended, and reclassifications out of accumulated other comprehensive income (loss) during the three month periods ended March 31, 2017 and 2016 , respectively. ($ in Thousands) Investments Securities Available For Sale Defined Benefit Pension and Post Retirement Obligations Accumulated Other Comprehensive Income (Loss) Balance January 1, 2017 $ (20,079 ) $ (34,600 ) $ (54,679 ) Other comprehensive loss before reclassifications (2,112 ) — (2,112 ) Amounts reclassified from accumulated other comprehensive income (loss): Personnel expense — 450 450 Interest income (Amortization of net unrealized gains (losses) on available for sale securities transferred to held to maturity securities) (1,027 ) — (1,027 ) Income tax (expense) benefit 1,195 (171 ) 1,024 Net other comprehensive income during period (1,944 ) 279 (1,665 ) Balance March 31, 2017 $ (22,023 ) $ (34,321 ) $ (56,344 ) Balance January 1, 2016 $ 459 $ (33,075 ) $ (32,616 ) Other comprehensive income before reclassifications 60,422 — 60,422 Amounts reclassified from accumulated other comprehensive income (loss): Investment securities gain, net (3,098 ) — (3,098 ) Personnel expense — 495 495 Interest income (Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities) (1,572 ) — (1,572 ) Income tax expense (21,275 ) (189 ) (21,464 ) Net other comprehensive income during period 34,477 306 34,783 Balance March 31, 2016 $ 34,936 $ (32,769 ) $ 2,167 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Finance, Loan and Lease Receivables, Held-for-sale, Policy [Policy Text Block] | Accounting Policy Elections Effective January 1, 2017, residential mortgage loans that are classified as held for sale are accounted using the fair value option method of accounting. The Corporation has elected the fair value option to mitigate accounting mismatches between held for sale loan valuations and corresponding derivative commitments. Prior to January 1, 2017, residential mortgage loans that were classified as held for sale were accounted for at the lower of cost or market method (“LOCOM”) of accounting. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements Adopted Standard Description Date of adoption Effect on financial statements ASU 2017-08 Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities The amendments of the new standard require that certain purchased callable debt securities held at a premium be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount, which continue to be amortized to maturity. 1st Quarter 2017 The Corporation early adopted with no material impact on results of operations, financial position, or liquidity. ASU 2017-03 Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323) The standard states that ASUs which have not been adopted yet, the registrant needs to determine the potential effects (if material) of those ASUs on the financial statements when adopted and include the appropriate disclosures in the financial statements. If the impact of adoption is unknown or cannot be estimated, the registrant should include a statement noting this and consider adding qualitative disclosures to the financial statements to assist the reader in evaluating the impact of the ASUs, when adopted, on the financial statements. 1st Quarter 2017 No material impact on results of operations, financial position, or liquidity. ASU 2016-17 Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control The FASB issued an amendment to address how a reporting entity that is a single decision maker of a variable interest entity treats indirect interests in the entity held through related parties that are under common control with the reporting entity. 1st Quarter 2017 No material impact on results of operations, financial position, or liquidity. ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The FASB issued an amendment involving several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Entities should apply the amendment related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Entities should apply the amendment related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement retrospectively. The amendment requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively. 4th Quarter 2016 The Corporation early adopted the accounting standard and recognized a $1 million reduction in income taxes for the excess tax benefits on stock-based compensation. The remaining provisions of this accounting standard did not have a material impact. ASU 2016-07 Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting The FASB issued an amendment to eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. Entities should apply the amendment prospectively to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. 1st Quarter 2017 No material impact on results of operations, financial position, or liquidity. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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. For the Three Months Ended March 31, 2017 2016 (In thousands, except per share data) Net income $ 56,270 $ 42,534 Preferred stock dividends (2,330 ) (2,198 ) Net income available to common equity $ 53,940 $ 40,336 Common shareholder dividends (18,251 ) (16,203 ) Unvested share-based payment awards (117 ) (206 ) Undistributed earnings $ 35,572 $ 23,927 Undistributed earnings allocated to common shareholders 35,294 23,686 Undistributed earnings allocated to unvested share-based payment awards 278 241 Undistributed earnings $ 35,572 $ 23,927 Basic Distributed earnings to common shareholders $ 18,251 $ 16,203 Undistributed earnings allocated to common shareholders 35,294 23,686 Total common shareholders earnings, basic $ 53,545 $ 39,889 Diluted Distributed earnings to common shareholders $ 18,251 $ 16,203 Undistributed earnings allocated to common shareholders 35,294 23,686 Total common shareholders earnings, diluted $ 53,545 $ 39,889 Weighted average common shares outstanding 150,815 148,601 Effect of dilutive common stock awards 3,054 853 Diluted weighted average common shares outstanding 153,869 149,454 Basic earnings per common share $ 0.36 $ 0.27 Diluted earnings per common share $ 0.35 $ 0.27 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 three months of 2017 and full year 2016 . 2017 2016 Dividend yield 2.00 % 2.50 % Risk-free interest rate 2.00 % 2.00 % Weighted average expected volatility 25.00 % 25.00 % Weighted average expected life 5.5 years 5.5 years Weighted average per share fair value of options $5.30 $3.36 |
Summary of Company's Stock Option Activities | A summary of the Corporation’s stock option activity for the three months ended March 31, 2017 is presented below. Stock Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (000s) Outstanding at December 31, 2016 6,357,843 $ 17.67 6.10 $ 47,902 Granted 799,558 $ 25.61 Exercised (1,038,549 ) 16.28 Forfeited or expired (432,001 ) 33.74 Outstanding at March 31, 2017 5,686,851 $ 18.07 7.00 $ 37,180 Options Exercisable at March 31, 2017 3,153,070 $ 16.47 5.59 $ 25,258 |
Summary of Restricted Stock Awards Activity (Excluding Salary Shares) | The following table summarizes information about the Corporation’s restricted stock activity for the three months ended March 31, 2017 . Restricted Stock Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2016 2,377,380 $ 17.40 Granted 729,135 25.59 Vested (788,033 ) 17.87 Forfeited (52,838 ) 17.92 Outstanding at March 31, 2017 2,265,644 $ 19.86 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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. March 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value ($ in Thousands) Investment securities available for sale: U. S. Treasury securities $ 1,004 $ 1 $ — $ 1,005 Residential mortgage-related securities: FNMA / FHLMC 575,826 15,710 (1,117 ) 590,419 GNMA 2,063,054 1,837 (25,065 ) 2,039,826 Private-label 1,118 — (16 ) 1,102 GNMA commercial mortgage-related securities 1,696,287 145 (33,095 ) 1,663,337 Other securities (debt and equity) 4,718 94 (11 ) 4,801 Total investment securities available for sale $ 4,342,007 $ 17,787 $ (59,304 ) $ 4,300,490 Investment securities held to maturity: Obligations of state and political subdivisions (municipal securities) $ 1,131,526 $ 7,150 $ (9,479 ) $ 1,129,197 Residential mortgage-related securities: FNMA / FHLMC 38,829 403 (727 ) 38,505 GNMA 88,256 146 (762 ) 87,640 GNMA commercial mortgage-related securities 296,232 5,005 (6,257 ) 294,980 Total investment securities held to maturity $ 1,554,843 $ 12,704 $ (17,225 ) $ 1,550,322 December 31, 2016 Amortized Gross Gross Fair Value ($ in Thousands) Investment securities available for sale: U. S. Treasury securities $ 1,000 $ — $ — $ 1,000 Residential mortgage-related securities: FNMA / FHLMC 625,234 17,298 (2,602 ) 639,930 GNMA 2,028,301 1,372 (25,198 ) 2,004,475 Private-label 1,134 1 (14 ) 1,121 GNMA commercial mortgage-related securities 2,064,508 356 (35,966 ) 2,028,898 Other securities (debt and equity) 4,718 105 (21 ) 4,802 Total investment securities available for sale $ 4,724,895 $ 19,132 $ (63,801 ) $ 4,680,226 Investment securities held to maturity: Municipal securities $ 1,145,843 $ 3,868 $ (12,036 ) $ 1,137,675 Residential mortgage-related securities: FNMA / FHLMC 37,697 439 (693 ) 37,443 GNMA 89,996 216 (656 ) 89,556 Total investment securities held to maturity $ 1,273,536 $ 4,523 $ (13,385 ) $ 1,264,674 |
Investment securities held to maturity | The amortized cost and fair values of securities available for sale and held to maturity were as follows. March 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value ($ in Thousands) Investment securities available for sale: U. S. Treasury securities $ 1,004 $ 1 $ — $ 1,005 Residential mortgage-related securities: FNMA / FHLMC 575,826 15,710 (1,117 ) 590,419 GNMA 2,063,054 1,837 (25,065 ) 2,039,826 Private-label 1,118 — (16 ) 1,102 GNMA commercial mortgage-related securities 1,696,287 145 (33,095 ) 1,663,337 Other securities (debt and equity) 4,718 94 (11 ) 4,801 Total investment securities available for sale $ 4,342,007 $ 17,787 $ (59,304 ) $ 4,300,490 Investment securities held to maturity: Obligations of state and political subdivisions (municipal securities) $ 1,131,526 $ 7,150 $ (9,479 ) $ 1,129,197 Residential mortgage-related securities: FNMA / FHLMC 38,829 403 (727 ) 38,505 GNMA 88,256 146 (762 ) 87,640 GNMA commercial mortgage-related securities 296,232 5,005 (6,257 ) 294,980 Total investment securities held to maturity $ 1,554,843 $ 12,704 $ (17,225 ) $ 1,550,322 December 31, 2016 Amortized Gross Gross Fair Value ($ in Thousands) Investment securities available for sale: U. S. Treasury securities $ 1,000 $ — $ — $ 1,000 Residential mortgage-related securities: FNMA / FHLMC 625,234 17,298 (2,602 ) 639,930 GNMA 2,028,301 1,372 (25,198 ) 2,004,475 Private-label 1,134 1 (14 ) 1,121 GNMA commercial mortgage-related securities 2,064,508 356 (35,966 ) 2,028,898 Other securities (debt and equity) 4,718 105 (21 ) 4,802 Total investment securities available for sale $ 4,724,895 $ 19,132 $ (63,801 ) $ 4,680,226 Investment securities held to maturity: Municipal securities $ 1,145,843 $ 3,868 $ (12,036 ) $ 1,137,675 Residential mortgage-related securities: FNMA / FHLMC 37,697 439 (693 ) 37,443 GNMA 89,996 216 (656 ) 89,556 Total investment securities held to maturity $ 1,273,536 $ 4,523 $ (13,385 ) $ 1,264,674 |
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 March 31, 2017 , 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 $ 3,500 $ 3,489 $ 41,148 $ 32,101 Due after one year through five years 2,204 2,205 252,007 259,468 Due after five years through ten years — — 248,861 250,081 Due after ten years — — 589,510 587,547 Total debt securities 5,704 5,694 1,131,526 1,129,197 Residential mortgage-related securities: FNMA / FHLMC 575,826 590,419 38,829 38,505 GNMA 2,063,054 2,039,826 88,256 87,640 Private-label 1,118 1,102 — — GNMA commercial mortgage-related securities 1,696,287 1,663,337 296,232 294,980 Equity securities 18 112 — — Total investment securities $ 4,342,007 $ 4,300,490 $ 1,554,843 $ 1,550,322 Ratio of Fair Value to Amortized Cost 99.0 % 99.7 % |
Realized gains and losses and proceeds from sale | Three Months Ended March 31, 2017 2016 ($ in Thousands) Gross gains $ — $ 3,287 Gross losses — (189 ) Investment securities gains, net $ — $ 3,098 Proceeds from sales of investment securities $ — $ 119,379 |
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 March 31, 2017 . Less than 12 months 12 months or more Total March 31, 2017 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 13 $ (1,117 ) $ 216,103 — $ — $ — $ (1,117 ) $ 216,103 GNMA 56 (25,065 ) 1,638,688 — — — (25,065 ) 1,638,688 Private-label — — — 1 (16 ) 1,100 (16 ) 1,100 GNMA commercial mortgage-related securities 73 (15,538 ) 1,214,494 19 (17,557 ) 368,724 (33,095 ) 1,583,218 Other securities (debt and equity) 3 (11 ) 1,489 — — — (11 ) 1,489 Total 145 $ (41,731 ) $ 3,070,774 20 $ (17,573 ) $ 369,824 $ (59,304 ) $ 3,440,598 Investment securities held to maturity: Municipal securities 538 $ (9,407 ) $ 342,534 4 $ (72 ) $ 1,778 $ (9,479 ) $ 344,312 Residential mortgage-related securities: FNMA / FHLMC 16 (480 ) 19,969 1 (247 ) 5,785 (727 ) 25,754 GNMA 38 (762 ) 62,494 — — — (762 ) 62,494 GNMA commercial mortgage-related securities 9 (4,369 ) 255,424 2 (1,888 ) 39,556 (6,257 ) 294,980 Total 601 $ (15,018 ) $ 680,421 7 $ (2,207 ) $ 47,119 $ (17,225 ) $ 727,540 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, 2016 . Less than 12 months 12 months or more Total December 31, 2016 Number Unrealized Fair Number Unrealized Fair Unrealized Fair ($ in Thousands) Investment securities available for sale: Residential mortgage-related securities: FNMA / FHLMC 14 $ (2,602 ) $ 244,252 — $ — $ — $ (2,602 ) $ 244,252 GNMA 54 (25,198 ) 1,723,523 — — — (25,198 ) 1,723,523 Private-label — — — 1 (14 ) 1,119 (14 ) 1,119 GNMA commercial mortgage-related securities 74 (16,445 ) 1,427,889 21 (19,521 ) 429,258 (35,966 ) 1,857,147 Other securities (debt and equity) 3 (21 ) 1,479 — — — (21 ) 1,479 Total 145 $ (44,266 ) $ 3,397,143 22 $ (19,535 ) $ 430,377 $ (63,801 ) $ 3,827,520 Investment securities held to maturity: Municipal securities 700 $ (11,937 ) $ 414,186 4 $ (99 ) $ 1,752 $ (12,036 ) $ 415,938 Residential mortgage-related securities: FNMA / FHLMC 14 (441 ) 17,477 1 (252 ) 6,031 (693 ) 23,508 GNMA 39 (656 ) 64,633 — — — (656 ) 64,633 Total 753 $ (13,034 ) $ 496,296 5 $ (351 ) $ 7,783 $ (13,385 ) $ 504,079 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Loan composition | The period end loan composition was as follows. March 31, December 31, ($ in Thousands) Commercial and industrial $ 6,300,646 $ 6,489,014 Commercial real estate — owner occupied 878,391 897,724 Commercial and business lending 7,179,037 7,386,738 Commercial real estate — investor 3,415,355 3,574,732 Real estate construction 1,553,205 1,432,497 Commercial real estate lending 4,968,560 5,007,229 Total commercial 12,147,597 12,393,967 Residential mortgage 6,715,282 6,332,327 Home equity 911,969 934,443 Other consumer 372,835 393,979 Total consumer 8,000,086 7,660,749 Total loans $ 20,147,683 $ 20,054,716 |
Commercial and consumer loans by credit quality indicator | The following table presents commercial and consumer loans by credit quality indicator at March 31, 2017 . Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 5,816,591 $ 100,234 $ 218,930 $ 164,891 $ 6,300,646 Commercial real estate - owner occupied 793,177 8,295 58,994 17,925 878,391 Commercial and business lending 6,609,768 108,529 277,924 182,816 7,179,037 Commercial real estate - investor 3,336,105 21,760 49,217 8,273 3,415,355 Real estate construction 1,541,779 38 10,141 1,247 1,553,205 Commercial real estate lending 4,877,884 21,798 59,358 9,520 4,968,560 Total commercial 11,487,652 130,327 337,282 192,336 12,147,597 Residential mortgage 6,658,070 874 2,155 54,183 6,715,282 Home equity 897,452 1,085 220 13,212 911,969 Other consumer 372,064 511 — 260 372,835 Total consumer 7,927,586 2,470 2,375 67,655 8,000,086 Total $ 19,415,238 $ 132,797 $ 339,657 $ 259,991 $ 20,147,683 The following table presents commercial and consumer loans by credit quality indicator at December 31, 2016 . Pass Special Mention Potential Problem Nonaccrual Total ($ in Thousands) Commercial and industrial $ 5,937,119 $ 141,328 $ 227,196 $ 183,371 $ 6,489,014 Commercial real estate - owner occupied 805,871 17,785 64,524 9,544 897,724 Commercial and business lending 6,742,990 159,113 291,720 192,915 7,386,738 Commercial real estate - investor 3,491,217 14,236 51,228 18,051 3,574,732 Real estate construction 1,429,083 105 2,465 844 1,432,497 Commercial real estate lending 4,920,300 14,341 53,693 18,895 5,007,229 Total commercial 11,663,290 173,454 345,413 211,810 12,393,967 Residential mortgage 6,275,162 1,314 5,615 50,236 6,332,327 Home equity 919,740 1,588 114 13,001 934,443 Other consumer 393,161 562 — 256 393,979 Total consumer 7,588,063 3,464 5,729 63,493 7,660,749 Total $ 19,251,353 $ 176,918 $ 351,142 $ 275,303 $ 20,054,716 |
Summarized details of Loans | The following table presents loans by past due status at March 31, 2017 . 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 $ 6,133,822 $ 752 $ 923 $ 258 $ 164,891 $ 6,300,646 Commercial real estate - owner occupied 859,496 500 470 — 17,925 878,391 Commercial and business lending 6,993,318 1,252 1,393 258 182,816 7,179,037 Commercial real estate - investor 3,405,960 920 202 — 8,273 3,415,355 Real estate construction 1,551,527 393 38 — 1,247 1,553,205 Commercial real estate lending 4,957,487 1,313 240 — 9,520 4,968,560 Total commercial 11,950,805 2,565 1,633 258 192,336 12,147,597 Residential mortgage 6,653,856 4,238 3,005 — 54,183 6,715,282 Home equity 894,245 3,406 1,106 — 13,212 911,969 Other consumer 369,455 1,013 645 1,462 260 372,835 Total consumer 7,917,556 8,657 4,756 1,462 67,655 8,000,086 Total $ 19,868,361 $ 11,222 $ 6,389 $ 1,720 $ 259,991 $ 20,147,683 (a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at March 31, 2017 (the same as the reported balances for the accruing loans noted above). (b) Of the total nonaccrual loans, $194 million or 75% were current with respect to payment at March 31, 2017 . The following table presents loans by past due status at December 31, 2016 . Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (a) Nonaccrual (b) Total ($ in Thousands) Commercial and industrial $ 6,303,994 $ 965 $ 448 $ 236 $ 183,371 $ 6,489,014 Commercial real estate - owner occupied 886,796 968 416 — 9,544 897,724 Commercial and business lending 7,190,790 1,933 864 236 192,915 7,386,738 Commercial real estate - investor 3,555,750 431 500 — 18,051 3,574,732 Real estate construction 1,431,284 264 105 — 844 1,432,497 Commercial real estate lending 4,987,034 695 605 — 18,895 5,007,229 Total commercial 12,177,824 2,628 1,469 236 211,810 12,393,967 Residential mortgage 6,273,949 7,298 844 — 50,236 6,332,327 Home equity 915,593 4,265 1,584 — 13,001 934,443 Other consumer 389,157 2,471 718 1,377 256 393,979 Total consumer 7,578,699 14,034 3,146 1,377 63,493 7,660,749 Total $ 19,756,523 $ 16,662 $ 4,615 $ 1,613 $ 275,303 $ 20,054,716 (a) The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at December 31, 2016 (the same as the reported balances for the accruing loans noted above). (b) Of the total nonaccrual loans, $224 million or 81% were current with respect to payment at December 31, 2016 . |
Summarized details of impaired Loans | The following table presents impaired loans at March 31, 2017 . Recorded Unpaid Related Average Interest ($ in Thousands) Loans with a related allowance Commercial and industrial $ 124,408 $ 135,061 $ 26,686 $ 130,361 $ 305 Commercial real estate — owner occupied 14,918 16,833 1,766 15,045 113 Commercial and business lending 139,326 151,894 28,452 145,406 418 Commercial real estate — investor 16,018 16,497 319 16,060 371 Real estate construction 1,349 1,663 533 1,369 32 Commercial real estate lending 17,367 18,160 852 17,429 403 Total commercial 156,693 170,054 29,304 162,835 821 Residential mortgage 66,221 71,013 11,860 66,495 588 Home equity 20,775 22,958 9,528 20,964 250 Other consumer 1,301 1,327 192 1,309 6 Total consumer 88,297 95,298 21,580 88,768 844 Total loans (a) $ 244,990 $ 265,352 $ 50,884 $ 251,603 $ 1,665 Loans with no related allowance Commercial and industrial $ 71,335 $ 75,212 $ — $ 73,314 $ 93 Commercial real estate — owner occupied 8,539 9,409 — 8,582 — Commercial and business lending 79,874 84,621 — 81,896 93 Commercial real estate — investor 6,818 7,219 — 6,853 — Real estate construction 225 225 — 225 — Commercial real estate lending 7,043 7,444 — 7,078 — Total commercial 86,917 92,065 — 88,974 93 Residential mortgage 6,497 7,521 — 6,507 68 Home equity 646 650 — 647 — Other consumer — — — — — Total consumer 7,143 8,171 — 7,154 68 Total loans (a) $ 94,060 $ 100,236 $ — $ 96,128 $ 161 Total Commercial and industrial $ 195,743 $ 210,273 $ 26,686 $ 203,675 $ 398 Commercial real estate — owner occupied 23,457 26,242 1,766 23,627 113 Commercial and business lending 219,200 236,515 28,452 227,302 511 Commercial real estate — investor 22,836 23,716 319 22,913 371 Real estate construction 1,574 1,888 533 1,594 32 Commercial real estate lending 24,410 25,604 852 24,507 403 Total commercial 243,610 262,119 29,304 251,809 914 Residential mortgage 72,718 78,534 11,860 73,002 656 Home equity 21,421 23,608 9,528 21,611 250 Other consumer 1,301 1,327 192 1,309 6 Total consumer 95,440 103,469 21,580 95,922 912 Total loans (a) $ 339,050 $ 365,588 $ 50,884 $ 347,731 $ 1,826 (a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 79% of the unpaid principal balance at March 31, 2017 . The following table presents impaired loans at December 31, 2016 . Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ in Thousands) Loans with a related allowance Commercial and industrial $ 101,770 $ 107,813 $ 21,617 $ 111,211 $ 2,512 Commercial real estate — owner occupied 6,595 8,641 295 7,111 274 Commercial and business lending 108,365 116,454 21,912 118,322 2,786 Commercial real estate — investor 27,196 27,677 3,541 31,142 2,124 Real estate construction 1,203 1,566 441 1,321 67 Commercial real estate lending 28,399 29,243 3,982 32,463 2,191 Total commercial 136,764 145,697 25,894 150,785 4,977 Residential mortgage 62,362 67,090 11,091 63,825 2,263 Home equity 20,651 22,805 9,312 21,825 1,114 Other consumer 1,235 1,284 186 1,294 29 Total consumer 84,248 91,179 20,589 86,944 3,406 Total loans (a) $ 221,012 $ 236,876 $ 46,483 $ 237,729 $ 8,383 Loans with no related allowance Commercial and industrial $ 113,485 $ 134,863 $ — $ 117,980 $ 1,519 Commercial real estate — owner occupied 8,439 9,266 — 8,759 138 Commercial and business lending 121,924 144,129 — 126,739 1,657 Commercial real estate — investor 6,144 6,478 — 7,092 — Real estate construction — — — — — Commercial real estate lending 6,144 6,478 — 7,092 — Total commercial 128,068 150,607 — 133,831 1,657 Residential mortgage 5,974 6,998 — 6,610 184 Home equity 106 107 — 107 4 Other consumer — — — — — Total consumer 6,080 7,105 — 6,717 188 Total loans (a) $ 134,148 $ 157,712 $ — $ 140,548 $ 1,845 Total Commercial and industrial $ 215,255 $ 242,676 $ 21,617 $ 229,191 $ 4,031 Commercial real estate — owner occupied 15,034 17,907 295 15,870 412 Commercial and business lending 230,289 260,583 21,912 245,061 4,443 Commercial real estate — investor 33,340 34,155 3,541 38,234 2,124 Real estate construction 1,203 1,566 441 1,321 67 Commercial real estate lending 34,543 35,721 3,982 39,555 2,191 Total commercial 264,832 296,304 25,894 284,616 6,634 Residential mortgage 68,336 74,088 11,091 70,435 2,447 Home equity 20,757 22,912 9,312 21,932 1,118 Other consumer 1,235 1,284 186 1,294 29 Total consumer 90,328 98,284 20,589 93,661 3,594 Total loans (a) $ 355,160 $ 394,588 $ 46,483 $ 378,277 $ 10,228 (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 December 31, 2016 . |
Nonaccrual and performing restructured loans | The following table presents nonaccrual and performing restructured loans by loan portfolio. March 31, 2017 December 31, 2016 Performing Restructured Loans Nonaccrual Restructured Loans (a) Performing Restructured Loans Nonaccrual Restructured Loans (a) ($ in Thousands) Commercial and industrial $ 30,852 $ 52,079 $ 31,884 $ 1,276 Commercial real estate — owner occupied 5,532 2,148 5,490 2,220 Commercial real estate — investor 14,563 1,643 15,289 924 Real estate construction 327 170 359 150 Residential mortgage 18,535 20,457 18,100 21,906 Home equity 8,209 2,379 7,756 2,877 Other consumer 1,041 26 979 32 Total $ 79,059 $ 78,902 $ 79,857 $ 29,385 (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 three months ended March 31, 2017 and 2016 , respectively, and the recorded investment and unpaid principal balance as of March 31, 2017 and 2016 respectively. Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 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 20 $ 52,326 $ 60,546 7 $ 1,483 $ 1,522 Commercial real estate — owner occupied 1 204 204 1 125 130 Commercial real estate — investor 1 733 744 — — — Real estate construction — — — 1 10 55 Residential mortgage 16 1,301 1,322 30 2,062 2,124 Home equity 15 347 347 20 818 879 Total 53 $ 54,911 $ 63,163 59 $ 4,498 $ 4,710 (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 three months ended March 31, 2017 and 2016 , respectively, as well as the recorded investment in these restructured loans as of March 31, 2017 and 2016 , respectively. Three Months Ended March 31, 2017 Three Month Ended March 31, 2016 Number of Loans Recorded Investment Number of Loans Recorded Investment ($ in Thousands) Real estate construction — $ — 1 $ 10 Residential mortgage 6 383 7 1,151 Home equity 2 26 8 153 Total 8 $ 409 16 $ 1,314 |
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, 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 (71,016 ) (512 ) (1,504 ) (558 ) (4,332 ) (4,686 ) (3,831 ) (86,439 ) Recoveries 14,543 74 1,624 203 755 3,491 820 21,510 Net charge offs (56,473 ) (438 ) 120 (355 ) (3,577 ) (1,195 ) (3,011 ) (64,929 ) Provision for loan losses 66,640 (4,208 ) 2,147 2,021 2,362 (1,996 ) 2,034 69,000 December 31, 2016 $ 140,126 $ 14,034 $ 45,285 $ 26,932 $ 27,046 $ 20,364 $ 4,548 $ 278,335 Allowance for loan losses: Individually evaluated for impairment $ 20,836 $ — $ 3,117 $ — $ 147 $ 3 $ — $ 24,103 Collectively evaluated for impairment 119,290 14,034 42,168 26,932 26,899 20,361 4,548 254,232 Total allowance for loan losses $ 140,126 $ 14,034 $ 45,285 $ 26,932 $ 27,046 $ 20,364 $ 4,548 $ 278,335 Loans: Individually evaluated for impairment $ 180,965 $ 8,439 $ 17,322 $ — $ 7,033 $ 650 $ — $ 214,409 Collectively evaluated for impairment 6,308,049 889,285 3,557,410 1,432,497 6,325,294 933,793 393,979 19,840,307 Total loans $ 6,489,014 $ 897,724 $ 3,574,732 $ 1,432,497 $ 6,332,327 $ 934,443 $ 393,979 $ 20,054,716 A summary of the changes in the allowance for loan losses by portfolio segment for the three months ended March 31, 2017 , 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, 2016 $ 140,126 $ 14,034 $ 45,285 $ 26,932 $ 27,046 $ 20,364 $ 4,548 $ 278,335 Charge offs (9,359 ) (5 ) (633 ) (23 ) (297 ) (509 ) (1,028 ) (11,854 ) Recoveries 4,991 24 119 34 169 682 172 6,191 Net charge offs (4,368 ) 19 (514 ) 11 (128 ) 173 (856 ) (5,663 ) Provision for loan losses 10,509 (2,841 ) (3,406 ) 1,825 3,370 (223 ) 766 10,000 March 31, 2017 $ 146,267 $ 11,212 $ 41,365 $ 28,768 $ 30,288 $ 20,314 $ 4,458 $ 282,672 Allowance for loan losses: Individually evaluated for impairment $ 25,915 $ 1,541 $ 99 $ — $ 810 $ — $ — $ 28,365 Collectively evaluated for impairment 120,352 9,671 41,266 28,768 29,478 20,314 4,458 254,307 Total allowance for loan losses $ 146,267 $ 11,212 $ 41,365 $ 28,768 $ 30,288 $ 20,314 $ 4,458 $ 282,672 Loans: Individually evaluated for impairment $ 162,788 $ 17,098 $ 7,615 $ 225 $ 11,086 $ 647 $ — $ 199,459 Collectively evaluated for impairment 6,137,858 861,293 3,407,740 1,552,980 6,704,196 911,322 372,835 19,948,224 Total loans $ 6,300,646 $ 878,391 $ 3,415,355 $ 1,553,205 $ 6,715,282 $ 911,969 $ 372,835 $ 20,147,683 |
Changes in the allowance for unfunded commitments | A summary of the changes in the allowance for unfunded commitments was as follows. Three Months Ended March 31, 2017 Year Ended December 31, 2016 ($ in Thousands) Allowance for Unfunded Commitments: Balance at beginning of period $ 25,400 $ 24,400 Provision for unfunded commitments (1,000 ) 1,000 Balance at end of period $ 24,400 $ 25,400 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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. Three Months Ended March 31, 2017 Year Ended December 31, 2016 ($ in Thousands) Core deposit intangibles: Gross carrying amount $ 4,385 $ 4,385 Accumulated amortization (4,340 ) (4,273 ) Net book value $ 45 $ 112 Amortization during the year $ 67 $ 281 Other intangibles: Gross carrying amount $ 32,572 $ 32,410 Accumulated amortization (17,591 ) (17,145 ) Net book value $ 14,981 $ 15,265 Additions during the period $ 162 $ 1,012 Amortization during the year $ 446 $ 1,812 |
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. Three Months Ended March 31, 2017 Year Ended December 31, 2016 ($ in Thousands) Mortgage servicing rights Mortgage servicing rights at beginning of period $ 62,085 $ 62,150 Additions 1,920 12,262 Amortization (2,477 ) (12,327 ) Mortgage servicing rights at end of period $ 61,528 $ 62,085 Valuation allowance at beginning of period (609 ) (809 ) (Additions) recoveries, net (217 ) 200 Valuation allowance at end of period (826 ) (609 ) Mortgage servicing rights, net $ 60,702 $ 61,476 Fair value of mortgage servicing rights $ 68,037 $ 73,149 Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) $ 7,908,799 $ 7,974,742 Mortgage servicing rights, net to servicing portfolio 0.77 % 0.77 % Mortgage servicing rights expense (a) $ 2,694 $ 12,127 (a) 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 March 31, 2017 . 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) Nine months ending December 31, 2017 $ 45 $ 1,351 $ 7,275 2018 — 1,771 8,389 2019 — 1,472 7,100 2020 — 1,355 6,025 2021 — 1,331 5,128 2022 — 1,308 4,385 Beyond 2022 — 6,393 23,226 Total Estimated Amortization Expense $ 45 $ 14,981 $ 61,528 |
Short and Long-Term Funding (Ta
Short and Long-Term Funding (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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. March 31, 2017 December 31, 2016 ($ in Thousands) Short-Term Funding Federal funds purchased $ 323,365 $ 208,150 Securities sold under agreements to repurchase 326,823 300,197 Federal funds purchased and securities sold under agreements to repurchase $ 650,188 $ 508,347 FHLB advances 309,000 482,000 Commercial paper 121,679 101,688 Other short-term funding 430,679 583,688 Total short-term funding $ 1,080,867 $ 1,092,035 Long-Term Funding FHLB advances $ 2,265,180 $ 2,265,188 Senior notes, at par 250,000 250,000 Subordinated notes, at par 250,000 250,000 Other long-term funding and capitalized costs (3,225 ) (3,393 ) Total long-term funding 2,761,955 2,761,795 Total short and long-term funding $ 3,842,822 $ 3,853,830 |
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 March 31, 2017 and December 31, 2016 are presented in the following table. Remaining Contractual Maturity of the Agreements March 31, 2017 Overnight and Continuous Up to 30 days 30-90 days Greater than 90 days Total ($ in Thousands) Repurchase agreements Agency mortgage-related securities $ 326,823 $ — $ — $ — $ 326,823 Total $ 326,823 $ — $ — $ — $ 326,823 December 31, 2016 Repurchase agreements Agency mortgage-related securities $ 300,197 $ — $ — $ — $ 300,197 Total $ 300,197 $ — $ — $ — $ 300,197 |
Derivative and Hedging Activi32
Derivative and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 free standing derivative instruments, which are not designated as hedging instruments. March 31, 2017 December 31, 2016 ($ in Thousands) Notional Amount Fair Value Balance Sheet Category Notional Amount Fair Balance Sheet Interest rate-related instruments — customer and mirror $ 2,098,658 $ 31,841 Trading assets $ 2,039,323 $ 33,671 Trading assets Interest rate-related instruments — customer and mirror 2,098,658 (31,113 ) Trading liabilities 2,039,323 (33,188 ) Trading liabilities Foreign currency exchange forwards 83,012 812 Trading assets 109,675 2,002 Trading assets Foreign currency exchange forwards 80,227 (774 ) Trading liabilities 106,251 (1,943 ) Trading liabilities Commodity contracts 301,425 16,653 Trading assets 127,582 16,725 Trading assets Commodity contracts 300,011 (15,674 ) Trading liabilities 128,368 (15,972 ) 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. March 31, 2017 December 31, 2016 ($ in Thousands) Notional Amount Fair Balance Sheet Notional Amount Fair Balance Sheet Interest rate lock commitments (mortgage) 291,674 1,803 Other assets 285,345 206 Other assets Forward commitments (mortgage) 100,750 (373 ) Other liabil ities 179,600 2,908 Other assets Purchased options (time deposit) 80,116 2,290 Other assets 80,554 2,576 Other assets Written options (time deposit) 80,116 (2,290 ) Other liabilities 80,554 (2,576 ) 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 Three Months Ended March 31, ($ in Thousands) 2017 2016 Derivative Instruments: Interest rate-related instruments — customer and mirror, net Capital market fees, net $ 245 $ (870 ) Interest rate lock commitments (mortgage) Mortgage banking, net 1,597 1,731 Forward commitments (mortgage) Mortgage banking, net (3,281 ) (2,135 ) Foreign currency exchange forwards Capital market fees, net (21 ) (28 ) Commodity contracts Capital market fees, net 226 — |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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) March 31, 2017 Derivative assets: Interest and commodity agreements $ 23,374 $ — $ 23,374 $ (19,022 ) $ (4,352 ) $ — Derivative liabilities: Interest and commodity agreements $ 19,022 $ — $ 19,022 $ (19,022 ) $ — $ — December 31, 2016 Derivative assets: Interest and commodity agreements $ 18,031 $ — $ 18,031 $ (18,031 ) $ — $ — Derivative liabilities: Interest and commodity agreements $ 31,075 $ — $ 31,075 $ (18,031 ) $ (11,148 ) $ 1,896 |
Commitments, Off-Balance Shee34
Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of lending-related and other commitments | The following is a summary of lending-related commitments. March 31, 2017 December 31, 2016 ($ in Thousands) Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale (a)(b) $ 8,041,839 $ 8,131,131 Commercial letters of credit (a) 7,490 7,923 Standby letters of credit (c) 268,612 259,632 (a) 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 March 31, 2017 or December 31, 2016 . (b) Interest rate lock commitments to originate residential mortgage loans held for sale are considered derivative instruments and are disclosed in Note 10 . (c) The Corporation has established a liability of $3 million at both March 31, 2017 and December 31, 2016 , as an estimate of the fair value of these financial instruments. |
Summary of changes in the residential mortgage repurchase reserve | The following summarizes the changes in the mortgage repurchase reserve. Three Months Ended March 31, 2017 Year Ended December 31, 2016 ($ in Thousands) Balance at beginning of period $ 900 $ 1,197 Repurchase provision expense 59 456 Adjustments to provision expense — (750 ) Charge offs, net — (3 ) Balance at end of period $ 959 $ 900 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured on Recurring Basis at Fair Value | The table below presents the Corporation’s financial instruments measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 , aggregated by the level in the fair value hierarchy within which those measurements fall. Fair Value Hierarchy March 31, 2017 December 31, 2016 ($ in Thousands) Assets: Investment securities available for sale: U.S. Treasury securities Level 1 $ 1,005 $ 1,000 Residential mortgage-related securities: FNMA / FHLMC Level 2 590,419 639,930 GNMA Level 2 2,039,826 2,004,475 Private-label Level 2 1,102 1,121 GNMA commercial mortgage-related securities Level 2 1,663,337 2,028,898 Other securities (debt and equity) Level 1 1,601 1,602 Other securities (debt and equity) Level 2 3,200 3,000 Other securities (debt and equity) Level 3 — 200 Total investment securities available for sale Level 1 2,606 2,602 Total investment securities available for sale Level 2 4,297,884 4,677,424 Total investment securities available for sale Level 3 — 200 Residential loans held for sale (a) Level 2 34,051 — Interest rate-related instruments Level 2 31,841 33,671 Foreign currency exchange forwards Level 2 812 2,002 Interest rate lock commitments to originate residential mortgage loans held for sale Level 3 1,803 206 Forward commitments to sell residential mortgage loans Level 3 — 2,908 Commodity contracts Level 2 16,653 16,725 Purchased options (time deposit) Level 2 2,290 2,576 Liabilities: Interest rate-related instruments Level 2 $ 31,113 $ 33,188 Foreign currency exchange forwards Level 2 774 1,943 Forward commitments to sell residential mortgage loans Level 3 373 — Commodity contracts Level 2 15,674 15,972 Written options (time deposit) Level 2 2,290 2,576 (a) Effective January 1, 2017, residential loans originated for sale are accounted for under the fair value option. Prior periods have not been restated. For more information on this accounting policy change, please refer to Note 3 to the Notes to the Consolidated Financial Statements. |
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 three months ended March 31, 2017 and the year ended December 31, 2016 , 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, 2015 $ 200 $ 1,361 Total net gains included in income: Mortgage derivative gain — 1,753 Balance December 31, 2016 $ 200 $ 3,114 Total net losses included in income: Mortgage derivative loss — (1,684 ) Transfer out of level 3 securities (a) (200 ) — Balance March 31, 2017 $ — $ 1,430 (a) During the first quarter of 2017, the $200,000 level 3 investment security was transferred to level 2 based upon new pricing information. |
Assets and Liabilities Measured on Nonrecurring Basis at Fair Value | The table below presents the Corporation’s loans held for sale, impaired loans, and mortgage servicing rights measured at fair value on a nonrecurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall. Income Statement Category of Adjustment Recognized in Income ($ in Thousands) Fair Value Hierarchy Fair Value March 31, 2017 Assets: Commercial loans held for sale (a) Level 2 $ 2,901 Provision for credit losses $ — Impaired loans (c) Level 3 93,552 Provision for credit losses (25,785 ) Other real estate owned Level 2 921 Foreclosure / OREO expense, net (583 ) Mortgage servicing rights Level 3 68,037 Mortgage banking, net (217 ) December 31, 2016 Assets: Commercial loans held for sale Level 2 $ 12,474 Provision for credit losses $ (559 ) Residential loans held for sale (b) Level 2 108,010 Mortgage banking, net (3,760 ) Impaired loans (c) Level 3 79,270 Provision for credit losses (75,194 ) Other real estate owned Level 2 9,752 Foreclosure / OREO expense, net (1,091 ) Mortgage servicing rights Level 3 73,149 Mortgage banking, net 200 (a) Commercial loans held for sale are carried at the lower of cost or estimated fair value. At March 31, 2017 , the estimated fair value exceeded the cost and therefore there was no adjustment recognized in Income. (b) Effective January 1, 2017, residential loans originated for sale are accounted for under the fair value option. Prior periods have not been restated. For more information on this accounting policy change, please refer to Note 3 to the Notes to the Consolidated Financial Statements. (c) 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. March 31, 2017 December 31, 2016 Fair Value Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value ($ in Thousands) Financial assets: Cash and due from banks Level 1 $ 332,601 $ 332,601 $ 446,558 $ 446,558 Interest-bearing deposits in other financial institutions Level 1 337,167 337,167 149,175 149,175 Federal funds sold and securities purchased under agreements to resell Level 1 19,700 19,700 46,500 46,500 Investment securities held to maturity Level 2 1,554,843 1,550,322 1,273,536 1,264,674 Investment securities available for sale Level 1 2,606 2,606 2,602 2,602 Investment securities available for sale Level 2 4,297,884 4,297,884 4,677,424 4,677,424 Investment securities available for sale Level 3 — — 200 200 FHLB and Federal Reserve Bank stocks Level 2 139,273 139,273 140,001 140,001 Commercial loans held for sale Level 2 2,901 2,901 12,474 12,474 Residential loans held for sale Level 2 34,051 34,051 108,010 108,010 Loans, net Level 3 19,865,011 19,752,810 19,776,381 19,680,317 Bank owned life insurance Level 2 587,600 587,600 585,290 585,290 Derivatives (trading and other assets) Level 2 51,596 51,596 54,974 54,974 Derivatives (trading and other assets) Level 3 1,803 1,803 3,114 3,114 Financial liabilities: Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts Level 3 $ 20,213,126 $ 20,213,126 $ 20,282,321 $ 20,282,321 Brokered CDs and other time deposits Level 2 1,614,909 1,614,909 1,606,127 1,606,127 Short-term funding Level 2 1,080,867 1,080,867 1,092,035 1,092,035 Long-term funding Level 2 2,761,955 2,790,093 2,761,795 2,791,841 Standby letters of credit (a) Level 2 2,648 2,648 2,566 2,566 Derivatives (trading and other liabilities) Level 2 49,851 49,851 53,679 53,679 Derivatives (trading and other liabilities) Level 3 373 373 — — (a) The commitment on standby letters of credit was $269 million and $260 million at March 31, 2017 and December 31, 2016 , respectively. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Net period benefit cost for the pension and postretirement plans | The components of net periodic benefit cost for the RAP and Postretirement Plans for three months ended March 31, 2017 and 2016 were as follows. Three Months Ended March 31, 2017 2016 ($ in Thousands) Components of Net Periodic Benefit Cost Pension Plan: Service cost $ 1,781 $ 1,725 Interest cost 1,756 1,780 Expected return on plan assets (4,881 ) (5,065 ) Amortization of prior service cost (19 ) 13 Amortization of actuarial loss 488 482 Total net pension cost $ (875 ) $ (1,065 ) Postretirement Plan: Interest cost $ 24 $ 36 Amortization of prior service cost (19 ) — Total net periodic benefit cost $ 5 $ 36 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 Three Months Ended March 31, 2017 Net interest income $ 89,388 $ 88,928 $ 1,958 $ 180,274 Noninterest income 11,993 64,870 2,968 79,831 Total revenue 101,381 153,798 4,926 260,105 Credit provision* 11,580 4,507 (7,087 ) 9,000 Noninterest expense 37,479 116,097 20,115 173,691 Income (loss) before income taxes 52,322 33,194 (8,102 ) 77,414 Income tax expense (benefit) 17,649 11,618 (8,123 ) 21,144 Net income $ 34,673 $ 21,576 $ 21 $ 56,270 Return on average allocated capital (ROCET1)** 12.6 % 15.2 % (2.5 )% 10.6 % Three Months Ended March 31, 2016 Net interest income $ 79,164 $ 85,605 $ 7,218 $ 171,987 Noninterest income 11,613 63,748 7,831 83,192 Total revenue 90,777 149,353 15,049 255,179 Credit provision* 12,739 6,142 1,119 20,000 Noninterest expense 34,403 121,295 18,273 173,971 Income (loss) before income taxes 43,635 21,916 (4,343 ) 61,208 Income tax expense (benefit) 14,579 7,670 (3,575 ) 18,674 Net income (loss) $ 29,056 $ 14,246 $ (768 ) $ 42,534 Return on average allocated capital (ROCET1)** 11.3 % 9.1 % (5.0 )% 8.6 % Segment Balance Sheet Data ($ in Thousands) Corporate and Commercial Specialty Community, Consumer, and Business Risk Management and Shared Services Consolidated Total Three Months Ended March 31, 2017 Average earning assets $ 10,759,811 $ 9,130,457 $ 6,449,046 $ 26,339,314 Average loans 10,753,314 9,128,656 190,755 20,072,725 Average deposits 6,420,401 11,337,064 3,708,257 21,465,722 Average allocated capital (CET1)** $ 1,114,610 $ 576,464 $ 370,675 $ 2,061,749 Three Months Ended March 31, 2016 Average earning assets $ 9,720,028 $ 9,120,319 $ 6,432,026 $ 25,272,373 Average loans 9,711,221 9,119,020 92,589 18,922,830 Average deposits 5,918,341 11,100,195 3,556,638 20,575,174 Average allocated capital (CET1)** $ 1,031,659 $ 627,211 $ 237,611 $ 1,896,481 * The consolidated credit provision is equal to the actual reported provision for credit losses. ** The Federal Reserve establishes capital adequacy requirements for the Corporation, including common equity Tier 1. For segment reporting purposes, the ROCET1 reflects return on average allocated common equity Tier 1. 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) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and 2016 , changes during the three month periods then ended, and reclassifications out of accumulated other comprehensive income (loss) during the three month periods ended March 31, 2017 and 2016 , respectively. ($ in Thousands) Investments Securities Available For Sale Defined Benefit Pension and Post Retirement Obligations Accumulated Other Comprehensive Income (Loss) Balance January 1, 2017 $ (20,079 ) $ (34,600 ) $ (54,679 ) Other comprehensive loss before reclassifications (2,112 ) — (2,112 ) Amounts reclassified from accumulated other comprehensive income (loss): Personnel expense — 450 450 Interest income (Amortization of net unrealized gains (losses) on available for sale securities transferred to held to maturity securities) (1,027 ) — (1,027 ) Income tax (expense) benefit 1,195 (171 ) 1,024 Net other comprehensive income during period (1,944 ) 279 (1,665 ) Balance March 31, 2017 $ (22,023 ) $ (34,321 ) $ (56,344 ) Balance January 1, 2016 $ 459 $ (33,075 ) $ (32,616 ) Other comprehensive income before reclassifications 60,422 — 60,422 Amounts reclassified from accumulated other comprehensive income (loss): Investment securities gain, net (3,098 ) — (3,098 ) Personnel expense — 495 495 Interest income (Amortization of net unrealized gains on available for sale securities transferred to held to maturity securities) (1,572 ) — (1,572 ) Income tax expense (21,275 ) (189 ) (21,464 ) Net other comprehensive income during period 34,477 306 34,783 Balance March 31, 2016 $ 34,936 $ (32,769 ) $ 2,167 |
Acquisitions (Details Textuals)
Acquisitions (Details Textuals) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)acquisition | Mar. 31, 2016USD ($)acquisition | Dec. 31, 2016USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill acquired during period | $ 55 | $ 3,000 | |
Additions to finite-lived intangible assets | $ 162 | $ 1,000 | |
Number of Acquisitions | acquisition | 1 | 2 | |
Other Intangible Assets | |||
Business Acquisition [Line Items] | |||
Additions to finite-lived intangible assets | $ 162 | $ 1,012 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Reduction in Taxes | |
Summary of Significant Accounting Policies [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 1 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Calculations for basic and diluted earnings per common share | ||
Net income | $ 56,270 | $ 42,534 |
Preferred stock dividends | (2,330) | (2,198) |
Net income available to common equity | 53,940 | 40,336 |
Common shareholder dividends | (18,251) | (16,203) |
Unvested share-based payment awards | (117) | (206) |
Undistributed earnings | 35,572 | 23,927 |
Undistributed earnings allocated to common shareholders | 35,294 | 23,686 |
Undistributed earnings allocated to unvested share-based payment awards | 278 | 241 |
Undistributed earnings | 35,572 | 23,927 |
Basic | ||
Distributed earnings to common shareholders | 18,251 | 16,203 |
Undistributed earnings allocated to common shareholders | 35,294 | 23,686 |
Total common shareholders earnings, basic | 53,545 | 39,889 |
Diluted | ||
Distributed earnings to common shareholders | 18,251 | 16,203 |
Undistributed earnings allocated to common shareholders | 35,294 | 23,686 |
Total common shareholders earnings, diluted | $ 53,545 | $ 39,889 |
Weighted average common shares outstanding (in shares) | 150,815 | 148,601 |
Effect of dilutive common stock awards (in shares) | 3,054 | 853 |
Diluted weighted average common shares outstanding (in shares) | 153,869 | 149,454 |
Basic earnings (loss) per common share (in usd per share) | $ 0.36 | $ 0.27 |
Diluted earnings (loss) per common share (in usd per share) | $ 0.35 | $ 0.27 |
Earnings Per Common Share (Text
Earnings Per Common Share (Textual) (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share Textuals [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share (in shares) | 500,000 | 3,000,000 |
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 4,000,000 |
Stock-Based Compensation, Stock
Stock-Based Compensation, Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Fair value assumptions of stock options | ||
Dividend yield | 2.00% | 2.50% |
Risk-free interest rate | 2.00% | 2.00% |
Weighted average expected volatility | 25.00% | 25.00% |
Weighted average expected life | 5 years 6 months | 5 years 6 months |
Weighted average per share fair value of stock options (in usd per share) | $ 5.30 | $ 3.36 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Stock Options Shares Outstanding, Beginning balance (in shares) | 6,357,843 | |
Granted (in shares) | 799,558 | |
Exercised (in shares) | (1,038,549) | |
Forfeited or expired (in shares) | (432,001) | |
Stock Options Shares Outstanding, Ending balance (in shares) | 5,686,851 | 6,357,843 |
Options exercisable (in shares) | 3,153,070 | |
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) | $ 17.67 | |
Granted, Weighted Average Exercise Price (in usd per share) | 25.61 | |
Exercised, Weighted Average Exercise Price (in usd per share) | 16.28 | |
Forfeited or expired, Weighted Average Exercise Price (in usd per share) | 33.74 | |
Stock Options Outstanding, Weighted Average Exercise Price, Ending balance (in usd per share) | 18.07 | $ 17.67 |
Options Exercisable, Weighted Average Exercise Price (in usd per share) | $ 16.47 | |
Stock Options Outstanding, Weighted Average Remaining Contractual Term | 7 years | 6 years 1 month 6 days |
Options exercisable, Weighted Average Remaining Contractual Term | 5 years 7 months 2 days | |
Stock Options Outstanding, Aggregate Intrinsic Value | $ 37,180 | $ 47,902 |
Options exercisable, Aggregate Intrinsic Value | $ 25,258 |
Stock-Based Compensation, Restr
Stock-Based Compensation, Restricted Stock Activity (Details) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
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) | shares | 2,377,380 |
Granted (in shares) | shares | 729,135 |
Vested (in shares) | shares | (788,033) |
Forfeited (in shares) | shares | (52,838) |
Outstanding Shares, Ending balance (in shares) | shares | 2,265,644 |
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) | $ / shares | $ 17.40 |
Granted, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | 25.59 |
Vested, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | 17.87 |
Forfeited, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | 17.92 |
Outstanding Weighted Average Grant Date Fair Value, Ending balance (in usd per share) | $ / shares | $ 19.86 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested share-based payment awards | $ 7,000 | |
Stock Based Compensation (Textuals) [Abstract] | ||
Intrinsic value of stock options exercised | 10,000 | $ 420 |
Total fair value of vested stock options | $ 3,000 | $ 3,000 |
Service-based Restricted Stock Award | ||
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 | ||
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 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Recognized compensation expense for accelerated vesting of stock options | $ 450 | |
Recognized compensation expense for vesting of stock options | $ 1,000 | $ 1,000 |
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Not Yet Recognized Year For Recognition | fourth quarter 2020 | |
Restricted Stock Award | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Recognized compensation expense for accelerated vesting of stock options | $ 2,000 | |
Recognized compensation expense for vesting of stock options | 7,000 | $ 7,000 |
Unvested share-based payment awards | $ 30,000 | |
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Not Yet Recognized Year For Recognition | fourth quarter 2020 |
Investment Securities, AFS and
Investment Securities, AFS and HTM Securities Amortized Costs and Fair Values (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investment securities available for sale: | ||
Amortized Cost | $ 4,342,007 | $ 4,724,895 |
Gross Unrealized Gains | 17,787 | 19,132 |
Gross Unrealized Losses | (59,304) | (63,801) |
Fair Value | 4,300,490 | 4,680,226 |
Investment securities held to maturity: | ||
Amortized Cost | 1,554,843 | 1,273,536 |
Gross Unrealized Gains | 12,704 | 4,523 |
Gross Unrealized Losses | (17,225) | (13,385) |
Fair Value | 1,550,322 | 1,264,674 |
US Treasury Securities | ||
Investment securities available for sale: | ||
Amortized Cost | 1,004 | 1,000 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,005 | 1,000 |
Obligations of state and political subdivisions (municipal securities) | ||
Investment securities held to maturity: | ||
Amortized Cost | 1,131,526 | 1,145,843 |
Gross Unrealized Gains | 7,150 | 3,868 |
Gross Unrealized Losses | (9,479) | (12,036) |
Fair Value | 1,129,197 | 1,137,675 |
Private Label | ||
Investment securities available for sale: | ||
Amortized Cost | 1,118 | 1,134 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (16) | (14) |
Fair Value | 1,102 | 1,121 |
Investment securities held to maturity: | ||
Amortized Cost | 0 | |
Fair Value | 0 | |
GNMA Commercial Mortgage-Related Securities | ||
Investment securities available for sale: | ||
Amortized Cost | 1,696,287 | 2,064,508 |
Gross Unrealized Gains | 145 | 356 |
Gross Unrealized Losses | (33,095) | (35,966) |
Fair Value | 1,663,337 | 2,028,898 |
Investment securities held to maturity: | ||
Amortized Cost | 296,232 | |
Gross Unrealized Gains | 5,005 | |
Gross Unrealized Losses | (6,257) | |
Fair Value | 294,980 | |
Other Debt And Other Equity Securities | ||
Investment securities available for sale: | ||
Amortized Cost | 4,718 | 4,718 |
Gross Unrealized Gains | 94 | 105 |
Gross Unrealized Losses | (11) | (21) |
Fair Value | 4,801 | 4,802 |
FNMA and FHLMC | Residential Related Securities | ||
Investment securities available for sale: | ||
Amortized Cost | 575,826 | 625,234 |
Gross Unrealized Gains | 15,710 | 17,298 |
Gross Unrealized Losses | (1,117) | (2,602) |
Fair Value | 590,419 | 639,930 |
Investment securities held to maturity: | ||
Amortized Cost | 38,829 | 37,697 |
Gross Unrealized Gains | 403 | 439 |
Gross Unrealized Losses | (727) | (693) |
Fair Value | 38,505 | 37,443 |
GNMA | Residential Related Securities | ||
Investment securities available for sale: | ||
Amortized Cost | 2,063,054 | 2,028,301 |
Gross Unrealized Gains | 1,837 | 1,372 |
Gross Unrealized Losses | (25,065) | (25,198) |
Fair Value | 2,039,826 | 2,004,475 |
Investment securities held to maturity: | ||
Amortized Cost | 88,256 | 89,996 |
Gross Unrealized Gains | 146 | 216 |
Gross Unrealized Losses | (762) | (656) |
Fair Value | $ 87,640 | $ 89,556 |
Investment Securities, AFS an47
Investment Securities, AFS and HTM Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Available for Sale, Due in one year or less | $ 3,500 | |
Available for Sale, Due after one year through five years | 2,204 | |
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 | 5,704 | |
Investment securities available for sale, amortized cost | 4,342,007 | $ 4,724,895 |
Fair Value | ||
Available for Sale, Due in one year or less | 3,489 | |
Available for Sale, Due after one year through five years | 2,205 | |
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 | 5,694 | |
Investment securities available for sale, at fair value | $ 4,300,490 | 4,680,226 |
Ratio of Fair Value to Amortized Cost | 99.00% | |
Amortized Cost | ||
Held to Maturity, Due in one year or less | $ 41,148 | |
Held to Maturity, Due after one year through five years | 252,007 | |
Held to Maturity, Due after five years through ten years | 248,861 | |
Held to Maturity, Due after ten years | 589,510 | |
Held to Maturity, Debt Securities, Amortized Cost Basis | 1,131,526 | |
Held to Maturity Amortized Cost | 1,554,843 | 1,273,536 |
Fair Value | ||
Held to Maturity, Due in one year or less | 32,101 | |
Held to Maturity, Due after one year through five years | 259,468 | |
Held to Maturity, Due after five years through ten years | 250,081 | |
Held to Maturity, Due after ten years | 587,547 | |
Held to Maturity, Securities, Debt Securities | 1,129,197 | |
Held to Maturity, Total debt securities | $ 1,550,322 | 1,264,674 |
Ratio of Fair Value to Amortized Cost | 99.70% | |
Private Label | ||
Amortized Cost | ||
Investment securities available for sale, amortized cost | $ 1,118 | 1,134 |
Fair Value | ||
Investment securities available for sale, at fair value | 1,102 | 1,121 |
Amortized Cost | ||
Held to Maturity Amortized Cost | 0 | |
Fair Value | ||
Held to Maturity, Total debt securities | 0 | |
GNMA Commercial Mortgage-Related Securities | ||
Amortized Cost | ||
Investment securities available for sale, amortized cost | 1,696,287 | 2,064,508 |
Fair Value | ||
Investment securities available for sale, at fair value | 1,663,337 | 2,028,898 |
Amortized Cost | ||
Held to Maturity Amortized Cost | 296,232 | |
Fair Value | ||
Held to Maturity, Total debt securities | 294,980 | |
Equity Securities [Member] | ||
Amortized Cost | ||
Investment securities available for sale, amortized cost | 18 | |
Fair Value | ||
Investment securities available for sale, at fair value | 112 | |
Amortized Cost | ||
Held to Maturity Amortized Cost | 0 | |
Fair Value | ||
Held to Maturity, Total debt securities | 0 | |
FNMA and FHLMC | Residential Related Securities | ||
Amortized Cost | ||
Investment securities available for sale, amortized cost | 575,826 | 625,234 |
Fair Value | ||
Investment securities available for sale, at fair value | 590,419 | 639,930 |
Amortized Cost | ||
Held to Maturity Amortized Cost | 38,829 | 37,697 |
Fair Value | ||
Held to Maturity, Total debt securities | 38,505 | 37,443 |
GNMA | Residential Related Securities | ||
Amortized Cost | ||
Investment securities available for sale, amortized cost | 2,063,054 | 2,028,301 |
Fair Value | ||
Investment securities available for sale, at fair value | 2,039,826 | 2,004,475 |
Amortized Cost | ||
Held to Maturity Amortized Cost | 88,256 | 89,996 |
Fair Value | ||
Held to Maturity, Total debt securities | $ 87,640 | $ 89,556 |
Investment Securities, Gains, L
Investment Securities, Gains, Losses, and Proceeds (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ||
Gross gains | $ 0 | $ 3,287 |
Gross losses | 0 | (189) |
Total investment securities gains, net | 0 | 3,098 |
Proceeds from sales of securities | $ 0 | $ 119,379 |
Investment Securities, AFS an49
Investment Securities, AFS and HTM Securities Gross Unrealized Losses (Details) $ in Thousands | Mar. 31, 2017USD ($)security | Dec. 31, 2016USD ($)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 | $ (41,731) | $ (44,266) |
Unrealized losses on available for sale securities, 12 months or more | (17,573) | (19,535) |
Total unrealized losses on available for sale securities | (59,304) | (63,801) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 3,070,774 | 3,397,143 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 369,824 | 430,377 |
Total fair value of unrealized losses on available for sale securities | $ 3,440,598 | $ 3,827,520 |
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 145 | 145 |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 20 | 22 |
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Unrealized losses on held to maturity securities, less than 12 months | $ (15,018) | $ (13,034) |
Unrealized losses on held to maturity securities, 12 months or more | (2,207) | (351) |
Total unrealized losses on held to maturity securities | $ (17,225) | $ (13,385) |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, 12 Months or Longer | security | 7 | 5 |
Fair value of unrealized losses on held to maturity securities, less than 12 months | $ 680,421 | $ 496,296 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 47,119 | 7,783 |
Total fair value of unrealized losses on held to maturity securities | $ 727,540 | $ 504,079 |
Held-to-maturity, Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions, less than 12 Months | security | 601 | 753 |
Obligations of state and political subdivisions (municipal securities) | ||
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Unrealized losses on held to maturity securities, less than 12 months | $ (9,407) | $ (11,937) |
Unrealized losses on held to maturity securities, 12 months or more | (72) | (99) |
Total unrealized losses on held to maturity securities | (9,479) | (12,036) |
Fair value of unrealized losses on held to maturity securities, less than 12 months | 342,534 | 414,186 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 1,778 | 1,752 |
Total fair value of unrealized losses on held to maturity securities | $ 344,312 | $ 415,938 |
Obligations of state and political subdivisions (municipal securities) | 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] | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 538 | 700 |
Obligations of state and political subdivisions (municipal securities) | 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] | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 4 | 4 |
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 | $ 0 |
Unrealized losses on available for sale securities, 12 months or more | (16) | (14) |
Total unrealized losses on available for sale securities | (16) | (14) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 0 | 0 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 1,100 | 1,119 |
Total fair value of unrealized losses on available for sale securities | $ 1,100 | $ 1,119 |
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 0 | 0 |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 1 | 1 |
GNMA Commercial Mortgage-Related 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 | $ (15,538) | $ (16,445) |
Unrealized losses on available for sale securities, 12 months or more | (17,557) | (19,521) |
Total unrealized losses on available for sale securities | (33,095) | (35,966) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 1,214,494 | 1,427,889 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 368,724 | 429,258 |
Total fair value of unrealized losses on available for sale securities | $ 1,583,218 | $ 1,857,147 |
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 73 | 74 |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 19 | 21 |
Held-to-maturity Securities Continuous Unrealized Loss Position [Abstract] | ||
Unrealized losses on held to maturity securities, less than 12 months | $ (4,369) | |
Unrealized losses on held to maturity securities, 12 months or more | (1,888) | |
Total unrealized losses on held to maturity securities | (6,257) | |
Fair value of unrealized losses on held to maturity securities, less than 12 months | 255,424 | |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 39,556 | |
Total fair value of unrealized losses on held to maturity securities | $ 294,980 | |
GNMA Commercial Mortgage-Related Securities | 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] | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 9 | |
GNMA Commercial Mortgage-Related Securities | 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] | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 2 | |
Other Debt And Other Equity 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 | $ (11) | $ (21) |
Unrealized losses on available for sale securities, 12 months or more | 0 | 0 |
Total unrealized losses on available for sale securities | (11) | (21) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 1,489 | 1,479 |
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 | $ 1,489 | $ 1,479 |
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 3 | 3 |
Number of available for sale securities in a continuous unrealized loss position for twelve months or more | security | 0 | 0 |
FNMA and FHLMC | Residential Related 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 | $ (1,117) | $ (2,602) |
Unrealized losses on available for sale securities, 12 months or more | 0 | 0 |
Total unrealized losses on available for sale securities | (1,117) | (2,602) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 216,103 | 244,252 |
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 | $ 216,103 | $ 244,252 |
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 13 | 14 |
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 | $ (480) | $ (441) |
Unrealized losses on held to maturity securities, 12 months or more | (247) | (252) |
Total unrealized losses on held to maturity securities | (727) | (693) |
Fair value of unrealized losses on held to maturity securities, less than 12 months | 19,969 | 17,477 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 5,785 | 6,031 |
Total fair value of unrealized losses on held to maturity securities | $ 25,754 | $ 23,508 |
FNMA and FHLMC | Residential Related Securities | 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] | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 16 | 14 |
FNMA and FHLMC | Residential Related Securities | 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] | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 1 | 1 |
GNMA | Residential Related 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 | $ (25,065) | $ (25,198) |
Unrealized losses on available for sale securities, 12 months or more | 0 | 0 |
Total unrealized losses on available for sale securities | (25,065) | (25,198) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 1,638,688 | 1,723,523 |
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 | $ 1,638,688 | $ 1,723,523 |
Number of available for sale securities in a continuous unrealized loss position less than twelve months | security | 56 | 54 |
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 | $ (762) | $ (656) |
Unrealized losses on held to maturity securities, 12 months or more | 0 | 0 |
Total unrealized losses on held to maturity securities | (762) | (656) |
Fair value of unrealized losses on held to maturity securities, less than 12 months | 62,494 | 64,633 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 0 | 0 |
Total fair value of unrealized losses on held to maturity securities | $ 62,494 | $ 64,633 |
GNMA | Residential Related Securities | 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] | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 38 | 39 |
GNMA | Residential Related Securities | 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] | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 0 | 0 |
Investment Securities (Details
Investment Securities (Details Textual) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Investment Securities (Textuals) [Abstract] | ||
Available-for-sale Securities, Transferred to Held-to-maturity Securities, at Carrying Value | $ 300 | |
Securities pledged as collateral | 2,100 | $ 1,800 |
Federal Home Loan Bank Stock | 64 | 65 |
Federal Reserve Bank Stock | $ 75 | $ 75 |
Loans, Loan Composition (Detail
Loans, Loan Composition (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 20,147,683 | $ 20,054,716 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 6,300,646 | 6,489,014 |
Commercial real estate — owner occupied | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 878,391 | 897,724 |
Commercial and business lending | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 7,179,037 | 7,386,738 |
Commercial real estate — investor | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 3,415,355 | 3,574,732 |
Real estate construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 1,553,205 | 1,432,497 |
Commercial real estate lending | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 4,968,560 | 5,007,229 |
Total commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 12,147,597 | 12,393,967 |
Residential mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 6,715,282 | 6,332,327 |
Home equity | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 911,969 | 934,443 |
Other consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 372,835 | 393,979 |
Total consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 8,000,086 | $ 7,660,749 |
Loans Loans, Loans by Credit Qu
Loans Loans, Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 20,147,683 | $ 20,054,716 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 19,415,238 | 19,251,353 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 132,797 | 176,918 |
Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 339,657 | 351,142 |
Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 259,991 | 275,303 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 6,300,646 | 6,489,014 |
Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 5,816,591 | 5,937,119 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 100,234 | 141,328 |
Commercial and industrial | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 218,930 | 227,196 |
Commercial and industrial | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 164,891 | 183,371 |
Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 878,391 | 897,724 |
Commercial real estate — owner occupied | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 793,177 | 805,871 |
Commercial real estate — owner occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 8,295 | 17,785 |
Commercial real estate — owner occupied | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 58,994 | 64,524 |
Commercial real estate — owner occupied | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 17,925 | 9,544 |
Commercial and business lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 7,179,037 | 7,386,738 |
Commercial and business lending | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 6,609,768 | 6,742,990 |
Commercial and business lending | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 108,529 | 159,113 |
Commercial and business lending | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 277,924 | 291,720 |
Commercial and business lending | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 182,816 | 192,915 |
Commercial real estate — investor | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 3,415,355 | 3,574,732 |
Commercial real estate — investor | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 3,336,105 | 3,491,217 |
Commercial real estate — investor | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 21,760 | 14,236 |
Commercial real estate — investor | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 49,217 | 51,228 |
Commercial real estate — investor | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 8,273 | 18,051 |
Real estate construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 1,553,205 | 1,432,497 |
Real estate construction | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 1,541,779 | 1,429,083 |
Real estate construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 38 | 105 |
Real estate construction | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 10,141 | 2,465 |
Real estate construction | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 1,247 | 844 |
Commercial real estate lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 4,968,560 | 5,007,229 |
Commercial real estate lending | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 4,877,884 | 4,920,300 |
Commercial real estate lending | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 21,798 | 14,341 |
Commercial real estate lending | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 59,358 | 53,693 |
Commercial real estate lending | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 9,520 | 18,895 |
Total commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 12,147,597 | 12,393,967 |
Total commercial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 11,487,652 | 11,663,290 |
Total commercial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 130,327 | 173,454 |
Total commercial | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 337,282 | 345,413 |
Total commercial | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 192,336 | 211,810 |
Residential mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 6,715,282 | 6,332,327 |
Residential mortgage | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 6,658,070 | 6,275,162 |
Residential mortgage | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 874 | 1,314 |
Residential mortgage | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 2,155 | 5,615 |
Residential mortgage | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 54,183 | 50,236 |
Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 911,969 | 934,443 |
Home equity | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 897,452 | 919,740 |
Home equity | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 1,085 | 1,588 |
Home equity | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 220 | 114 |
Home equity | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 13,212 | 13,001 |
Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 372,835 | 393,979 |
Other consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 372,064 | 393,161 |
Other consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 511 | 562 |
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 | 260 | 256 |
Total consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 8,000,086 | 7,660,749 |
Total consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 7,927,586 | 7,588,063 |
Total consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 2,470 | 3,464 |
Total consumer | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 2,375 | 5,729 |
Total consumer | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 67,655 | $ 63,493 |
Loans, Loans by Past Due Status
Loans, Loans by Past Due Status (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Summarized details of Loans | ||
Current | $ 19,868,361 | $ 19,756,523 |
Nonaccrual | 259,991 | 275,303 |
Total loans | 20,147,683 | 20,054,716 |
Accruing loans past due 90 days or more | 2,000 | 2,000 |
Nonaccrual Loans, Current Portion | $ 194,000 | $ 224,000 |
Percent of current nonaccrual loans | 75.00% | 81.00% |
30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | $ 11,222 | $ 16,662 |
60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 6,389 | 4,615 |
90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,720 | 1,613 |
Commercial and industrial | ||
Summarized details of Loans | ||
Current | 6,133,822 | 6,303,994 |
Nonaccrual | 164,891 | 183,371 |
Total loans | 6,300,646 | 6,489,014 |
Commercial and industrial | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 752 | 965 |
Commercial and industrial | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 923 | 448 |
Commercial and industrial | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 258 | 236 |
Commercial real estate — owner occupied | ||
Summarized details of Loans | ||
Current | 859,496 | 886,796 |
Nonaccrual | 17,925 | 9,544 |
Total loans | 878,391 | 897,724 |
Commercial real estate — owner occupied | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 500 | 968 |
Commercial real estate — owner occupied | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 470 | 416 |
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 | 6,993,318 | 7,190,790 |
Nonaccrual | 182,816 | 192,915 |
Total loans | 7,179,037 | 7,386,738 |
Commercial and business lending | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,252 | 1,933 |
Commercial and business lending | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,393 | 864 |
Commercial and business lending | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 258 | 236 |
Commercial real estate — investor | ||
Summarized details of Loans | ||
Current | 3,405,960 | 3,555,750 |
Nonaccrual | 8,273 | 18,051 |
Total loans | 3,415,355 | 3,574,732 |
Commercial real estate — investor | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 920 | 431 |
Commercial real estate — investor | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 202 | 500 |
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 | 1,551,527 | 1,431,284 |
Nonaccrual | 1,247 | 844 |
Total loans | 1,553,205 | 1,432,497 |
Real estate construction | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 393 | 264 |
Real estate construction | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 38 | 105 |
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 | 4,957,487 | 4,987,034 |
Nonaccrual | 9,520 | 18,895 |
Total loans | 4,968,560 | 5,007,229 |
Commercial real estate lending | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,313 | 695 |
Commercial real estate lending | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 240 | 605 |
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 | 11,950,805 | 12,177,824 |
Nonaccrual | 192,336 | 211,810 |
Total loans | 12,147,597 | 12,393,967 |
Total commercial | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 2,565 | 2,628 |
Total commercial | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,633 | 1,469 |
Total commercial | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 258 | 236 |
Residential mortgage | ||
Summarized details of Loans | ||
Current | 6,653,856 | 6,273,949 |
Nonaccrual | 54,183 | 50,236 |
Total loans | 6,715,282 | 6,332,327 |
Residential mortgage | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 4,238 | 7,298 |
Residential mortgage | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 3,005 | 844 |
Residential mortgage | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 0 | 0 |
Home equity | ||
Summarized details of Loans | ||
Current | 894,245 | 915,593 |
Nonaccrual | 13,212 | 13,001 |
Total loans | 911,969 | 934,443 |
Home equity | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 3,406 | 4,265 |
Home equity | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,106 | 1,584 |
Home equity | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 0 | 0 |
Other consumer | ||
Summarized details of Loans | ||
Current | 369,455 | 389,157 |
Nonaccrual | 260 | 256 |
Total loans | 372,835 | 393,979 |
Other consumer | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,013 | 2,471 |
Other consumer | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 645 | 718 |
Other consumer | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,462 | 1,377 |
Total consumer | ||
Summarized details of Loans | ||
Current | 7,917,556 | 7,578,699 |
Nonaccrual | 67,655 | 63,493 |
Total loans | 8,000,086 | 7,660,749 |
Total consumer | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 8,657 | 14,034 |
Total consumer | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 4,756 | 3,146 |
Total consumer | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | $ 1,462 | $ 1,377 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | $ 339,050 | $ 355,160 |
Unpaid Principal Balance | 365,588 | 394,588 |
Related Allowance | 50,884 | 46,483 |
Average Recorded Investment | 347,731 | 378,277 |
Interest Income Recognized | $ 1,826 | $ 10,228 |
Net Recorded Investment of the Impaired Loans | 79.00% | 78.00% |
Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | $ 244,990 | $ 221,012 |
Unpaid Principal Balance | 265,352 | 236,876 |
Related Allowance | 50,884 | 46,483 |
Average Recorded Investment | 251,603 | 237,729 |
Interest Income Recognized | 1,665 | 8,383 |
Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 94,060 | 134,148 |
Unpaid Principal Balance | 100,236 | 157,712 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 96,128 | 140,548 |
Interest Income Recognized | 161 | 1,845 |
Commercial and industrial | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 195,743 | 215,255 |
Unpaid Principal Balance | 210,273 | 242,676 |
Related Allowance | 26,686 | 21,617 |
Average Recorded Investment | 203,675 | 229,191 |
Interest Income Recognized | 398 | 4,031 |
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 | 124,408 | 101,770 |
Unpaid Principal Balance | 135,061 | 107,813 |
Related Allowance | 26,686 | 21,617 |
Average Recorded Investment | 130,361 | 111,211 |
Interest Income Recognized | 305 | 2,512 |
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 | 71,335 | 113,485 |
Unpaid Principal Balance | 75,212 | 134,863 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 73,314 | 117,980 |
Interest Income Recognized | 93 | 1,519 |
Commercial real estate — owner occupied | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 23,457 | 15,034 |
Unpaid Principal Balance | 26,242 | 17,907 |
Related Allowance | 1,766 | 295 |
Average Recorded Investment | 23,627 | 15,870 |
Interest Income Recognized | 113 | 412 |
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 | 14,918 | 6,595 |
Unpaid Principal Balance | 16,833 | 8,641 |
Related Allowance | 1,766 | 295 |
Average Recorded Investment | 15,045 | 7,111 |
Interest Income Recognized | 113 | 274 |
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 | 8,539 | 8,439 |
Unpaid Principal Balance | 9,409 | 9,266 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 8,582 | 8,759 |
Interest Income Recognized | 0 | 138 |
Commercial and business lending | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 219,200 | 230,289 |
Unpaid Principal Balance | 236,515 | 260,583 |
Related Allowance | 28,452 | 21,912 |
Average Recorded Investment | 227,302 | 245,061 |
Interest Income Recognized | 511 | 4,443 |
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 | 139,326 | 108,365 |
Unpaid Principal Balance | 151,894 | 116,454 |
Related Allowance | 28,452 | 21,912 |
Average Recorded Investment | 145,406 | 118,322 |
Interest Income Recognized | 418 | 2,786 |
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 | 79,874 | 121,924 |
Unpaid Principal Balance | 84,621 | 144,129 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 81,896 | 126,739 |
Interest Income Recognized | 93 | 1,657 |
Commercial real estate — investor | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 22,836 | 33,340 |
Unpaid Principal Balance | 23,716 | 34,155 |
Related Allowance | 319 | 3,541 |
Average Recorded Investment | 22,913 | 38,234 |
Interest Income Recognized | 371 | 2,124 |
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 | 16,018 | 27,196 |
Unpaid Principal Balance | 16,497 | 27,677 |
Related Allowance | 319 | 3,541 |
Average Recorded Investment | 16,060 | 31,142 |
Interest Income Recognized | 371 | 2,124 |
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 | 6,818 | 6,144 |
Unpaid Principal Balance | 7,219 | 6,478 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 6,853 | 7,092 |
Interest Income Recognized | 0 | 0 |
Real estate construction | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 1,574 | 1,203 |
Unpaid Principal Balance | 1,888 | 1,566 |
Related Allowance | 533 | 441 |
Average Recorded Investment | 1,594 | 1,321 |
Interest Income Recognized | 32 | 67 |
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 | 1,349 | 1,203 |
Unpaid Principal Balance | 1,663 | 1,566 |
Related Allowance | 533 | 441 |
Average Recorded Investment | 1,369 | 1,321 |
Interest Income Recognized | 32 | 67 |
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 | 225 | 0 |
Unpaid Principal Balance | 225 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 225 | 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 | 24,410 | 34,543 |
Unpaid Principal Balance | 25,604 | 35,721 |
Related Allowance | 852 | 3,982 |
Average Recorded Investment | 24,507 | 39,555 |
Interest Income Recognized | 403 | 2,191 |
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 | 17,367 | 28,399 |
Unpaid Principal Balance | 18,160 | 29,243 |
Related Allowance | 852 | 3,982 |
Average Recorded Investment | 17,429 | 32,463 |
Interest Income Recognized | 403 | 2,191 |
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 | 7,043 | 6,144 |
Unpaid Principal Balance | 7,444 | 6,478 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 7,078 | 7,092 |
Interest Income Recognized | 0 | 0 |
Total commercial | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 243,610 | 264,832 |
Unpaid Principal Balance | 262,119 | 296,304 |
Related Allowance | 29,304 | 25,894 |
Average Recorded Investment | 251,809 | 284,616 |
Interest Income Recognized | 914 | 6,634 |
Total commercial | Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 156,693 | 136,764 |
Unpaid Principal Balance | 170,054 | 145,697 |
Related Allowance | 29,304 | 25,894 |
Average Recorded Investment | 162,835 | 150,785 |
Interest Income Recognized | 821 | 4,977 |
Total commercial | Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 86,917 | 128,068 |
Unpaid Principal Balance | 92,065 | 150,607 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 88,974 | 133,831 |
Interest Income Recognized | 93 | 1,657 |
Residential mortgage | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 72,718 | 68,336 |
Unpaid Principal Balance | 78,534 | 74,088 |
Related Allowance | 11,860 | 11,091 |
Average Recorded Investment | 73,002 | 70,435 |
Interest Income Recognized | 656 | 2,447 |
Residential mortgage | Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 66,221 | 62,362 |
Unpaid Principal Balance | 71,013 | 67,090 |
Related Allowance | 11,860 | 11,091 |
Average Recorded Investment | 66,495 | 63,825 |
Interest Income Recognized | 588 | 2,263 |
Residential mortgage | Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 6,497 | 5,974 |
Unpaid Principal Balance | 7,521 | 6,998 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 6,507 | 6,610 |
Interest Income Recognized | 68 | 184 |
Home equity | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 21,421 | 20,757 |
Unpaid Principal Balance | 23,608 | 22,912 |
Related Allowance | 9,528 | 9,312 |
Average Recorded Investment | 21,611 | 21,932 |
Interest Income Recognized | 250 | 1,118 |
Home equity | Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 20,775 | 20,651 |
Unpaid Principal Balance | 22,958 | 22,805 |
Related Allowance | 9,528 | 9,312 |
Average Recorded Investment | 20,964 | 21,825 |
Interest Income Recognized | 250 | 1,114 |
Home equity | Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 646 | 106 |
Unpaid Principal Balance | 650 | 107 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 647 | 107 |
Interest Income Recognized | 0 | 4 |
Other consumer | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 1,301 | 1,235 |
Unpaid Principal Balance | 1,327 | 1,284 |
Related Allowance | 192 | 186 |
Average Recorded Investment | 1,309 | 1,294 |
Interest Income Recognized | 6 | 29 |
Other consumer | Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 1,301 | 1,235 |
Unpaid Principal Balance | 1,327 | 1,284 |
Related Allowance | 192 | 186 |
Average Recorded Investment | 1,309 | 1,294 |
Interest Income Recognized | 6 | 29 |
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 | 95,440 | 90,328 |
Unpaid Principal Balance | 103,469 | 98,284 |
Related Allowance | 21,580 | 20,589 |
Average Recorded Investment | 95,922 | 93,661 |
Interest Income Recognized | 912 | 3,594 |
Total consumer | Loans with a related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 88,297 | 84,248 |
Unpaid Principal Balance | 95,298 | 91,179 |
Related Allowance | 21,580 | 20,589 |
Average Recorded Investment | 88,768 | 86,944 |
Interest Income Recognized | 844 | 3,406 |
Total consumer | Loans with no related allowance | ||
Summarize of nonaccrual loans, accruing loans past due 90 days or more, and restructured loans | ||
Recorded Investment | 7,143 | 6,080 |
Unpaid Principal Balance | 8,171 | 7,105 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 7,154 | 6,717 |
Interest Income Recognized | $ 68 | $ 188 |
Loans, Troubled Debt Restructur
Loans, Troubled Debt Restructurings Performing and Nonaccrual (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | $ 79,059 | $ 79,857 |
Nonaccrual Restructured Loans | 78,902 | 29,385 |
Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 30,852 | 31,884 |
Nonaccrual Restructured Loans | 52,079 | 1,276 |
Commercial real estate — owner occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 5,532 | 5,490 |
Nonaccrual Restructured Loans | 2,148 | 2,220 |
Commercial real estate — investor | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 14,563 | 15,289 |
Nonaccrual Restructured Loans | 1,643 | 924 |
Real estate construction | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 327 | 359 |
Nonaccrual Restructured Loans | 170 | 150 |
Residential mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 18,535 | 18,100 |
Nonaccrual Restructured Loans | 20,457 | 21,906 |
Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 8,209 | 7,756 |
Nonaccrual Restructured Loans | 2,379 | 2,877 |
Other consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 1,041 | 979 |
Nonaccrual Restructured Loans | $ 26 | $ 32 |
Loans, Loans Modified in a Trou
Loans, Loans Modified in a Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)loan | Mar. 31, 2016USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 53 | 59 |
Recorded Investment | $ 54,911 | $ 4,498 |
Unpaid Principal Balance | $ 63,163 | $ 4,710 |
Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 20 | 7 |
Recorded Investment | $ 52,326 | $ 1,483 |
Unpaid Principal Balance | $ 60,546 | $ 1,522 |
Commercial real estate — owner occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Recorded Investment | $ 204 | $ 125 |
Unpaid Principal Balance | $ 204 | $ 130 |
Commercial real estate — investor | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 0 |
Recorded Investment | $ 733 | $ 0 |
Unpaid Principal Balance | $ 744 | $ 0 |
Real estate construction | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Recorded Investment | $ 0 | $ 10 |
Unpaid Principal Balance | $ 0 | $ 55 |
Residential mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 16 | 30 |
Recorded Investment | $ 1,301 | $ 2,062 |
Unpaid Principal Balance | $ 1,322 | $ 2,124 |
Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 15 | 20 |
Recorded Investment | $ 347 | $ 818 |
Unpaid Principal Balance | $ 347 | $ 879 |
Loans, Troubled Debt Restruct57
Loans, Troubled Debt Restructurings Subsequent Default (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)loan | Mar. 31, 2016USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 8 | 16 |
Recorded Investment | $ | $ 409 | $ 1,314 |
Real estate construction | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 10 |
Residential mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 6 | 7 |
Recorded Investment | $ | $ 383 | $ 1,151 |
Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 2 | 8 |
Recorded Investment | $ | $ 26 | $ 153 |
Loans, Changes in the Allowance
Loans, Changes in the Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | $ 278,335 | $ 274,264 |
Charge offs | (11,854) | (86,439) |
Recoveries | 6,191 | 21,510 |
Net charge offs | (5,663) | (64,929) |
Provision for loan losses | 10,000 | 69,000 |
Balance at end of period | 282,672 | 278,335 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 28,365 | 24,103 |
Collectively evaluated for impairment | 254,307 | 254,232 |
Balance at end of period | 282,672 | 278,335 |
Loans: | ||
Individually evaluated for impairment | 199,459 | 214,409 |
Collectively evaluated for impairment | 19,948,224 | 19,840,307 |
Total loans | 20,147,683 | 20,054,716 |
Commercial and industrial | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 140,126 | 129,959 |
Charge offs | (9,359) | (71,016) |
Recoveries | 4,991 | 14,543 |
Net charge offs | (4,368) | (56,473) |
Provision for loan losses | 10,509 | 66,640 |
Balance at end of period | 146,267 | 140,126 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 25,915 | 20,836 |
Collectively evaluated for impairment | 120,352 | 119,290 |
Balance at end of period | 146,267 | 140,126 |
Loans: | ||
Individually evaluated for impairment | 162,788 | 180,965 |
Collectively evaluated for impairment | 6,137,858 | 6,308,049 |
Total loans | 6,300,646 | 6,489,014 |
Commercial real estate — owner occupied | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 14,034 | 18,680 |
Charge offs | (5) | (512) |
Recoveries | 24 | 74 |
Net charge offs | 19 | (438) |
Provision for loan losses | (2,841) | (4,208) |
Balance at end of period | 11,212 | 14,034 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 1,541 | 0 |
Collectively evaluated for impairment | 9,671 | 14,034 |
Balance at end of period | 11,212 | 14,034 |
Loans: | ||
Individually evaluated for impairment | 17,098 | 8,439 |
Collectively evaluated for impairment | 861,293 | 889,285 |
Total loans | 878,391 | 897,724 |
Commercial real estate — investor | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 45,285 | 43,018 |
Charge offs | (633) | (1,504) |
Recoveries | 119 | 1,624 |
Net charge offs | (514) | 120 |
Provision for loan losses | (3,406) | 2,147 |
Balance at end of period | 41,365 | 45,285 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 99 | 3,117 |
Collectively evaluated for impairment | 41,266 | 42,168 |
Balance at end of period | 41,365 | 45,285 |
Loans: | ||
Individually evaluated for impairment | 7,615 | 17,322 |
Collectively evaluated for impairment | 3,407,740 | 3,557,410 |
Total loans | 3,415,355 | 3,574,732 |
Real estate construction | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 26,932 | 25,266 |
Charge offs | (23) | (558) |
Recoveries | 34 | 203 |
Net charge offs | 11 | (355) |
Provision for loan losses | 1,825 | 2,021 |
Balance at end of period | 28,768 | 26,932 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 28,768 | 26,932 |
Balance at end of period | 28,768 | 26,932 |
Loans: | ||
Individually evaluated for impairment | 225 | 0 |
Collectively evaluated for impairment | 1,552,980 | 1,432,497 |
Total loans | 1,553,205 | 1,432,497 |
Residential mortgage | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 27,046 | 28,261 |
Charge offs | (297) | (4,332) |
Recoveries | 169 | 755 |
Net charge offs | (128) | (3,577) |
Provision for loan losses | 3,370 | 2,362 |
Balance at end of period | 30,288 | 27,046 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 810 | 147 |
Collectively evaluated for impairment | 29,478 | 26,899 |
Balance at end of period | 30,288 | 27,046 |
Loans: | ||
Individually evaluated for impairment | 11,086 | 7,033 |
Collectively evaluated for impairment | 6,704,196 | 6,325,294 |
Total loans | 6,715,282 | 6,332,327 |
Home equity | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 20,364 | 23,555 |
Charge offs | (509) | (4,686) |
Recoveries | 682 | 3,491 |
Net charge offs | 173 | (1,195) |
Provision for loan losses | (223) | (1,996) |
Balance at end of period | 20,314 | 20,364 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 0 | 3 |
Collectively evaluated for impairment | 20,314 | 20,361 |
Balance at end of period | 20,314 | 20,364 |
Loans: | ||
Individually evaluated for impairment | 647 | 650 |
Collectively evaluated for impairment | 911,322 | 933,793 |
Total loans | 911,969 | 934,443 |
Other consumer | ||
Changes in the allowance for loan losses by portfolio segment | ||
Balance at beginning of year | 4,548 | 5,525 |
Charge offs | (1,028) | (3,831) |
Recoveries | 172 | 820 |
Net charge offs | (856) | (3,011) |
Provision for loan losses | 766 | 2,034 |
Balance at end of period | 4,458 | 4,548 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 4,458 | 4,548 |
Balance at end of period | 4,458 | 4,548 |
Loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 372,835 | 393,979 |
Total loans | $ 372,835 | $ 393,979 |
Loans, Changes in the Allowan59
Loans, Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Change in the allowance for unfunded commitments | ||
Balance at beginning of period | $ 25,000 | |
Balance at end of period | 24,000 | $ 25,000 |
Allowance for Unfunded Commitments: | ||
Change in the allowance for unfunded commitments | ||
Balance at beginning of period | 25,400 | 24,400 |
Provision for unfunded commitments | (1,000) | 1,000 |
Balance at end of period | $ 24,400 | $ 25,400 |
Loans (Details Textuals)
Loans (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Receivables [Abstract] | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 54,911 | $ 4,498 |
Restructured Loans Subsequently Accruing | 1,000 | |
Ytd Restructured Loans Still On Nonaccrual | $ 54,000 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Summary of Core Deposit and Other Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Summary of core deposit intangibles and other intangibles | |||
Additions during the period | $ 162 | $ 1,000 | |
Amortization of other intangible assets | 513 | $ 504 | |
Core Deposit Intangibles | |||
Summary of core deposit intangibles and other intangibles | |||
Gross carrying amount | 4,385 | $ 4,385 | |
Accumulated amortization | (4,340) | (4,273) | |
Total Estimated Amortization Expense | 45 | 112 | |
Amortization of other intangible assets | 67 | 281 | |
Other Intangible Assets | |||
Summary of core deposit intangibles and other intangibles | |||
Gross carrying amount | 32,572 | 32,410 | |
Accumulated amortization | (17,591) | (17,145) | |
Total Estimated Amortization Expense | 14,981 | 15,265 | |
Additions during the period | 162 | 1,012 | |
Amortization of other intangible assets | $ 446 | $ 1,812 |
Goodwill and Intangible Asset62
Goodwill and Intangible Assets, Mortgage Servicing Rights Roll-Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Mortgage servicing rights: | ||
Mortgage servicing rights at beginning of period | $ 62,085 | $ 62,150 |
Additions | 1,920 | 12,262 |
Amortization | (2,477) | (12,327) |
Mortgage servicing rights at end of period | 61,528 | 62,085 |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | ||
Valuation allowance at beginning of period | (609) | (809) |
(Additions) recoveries, net | (217) | 200 |
Valuation allowance at end of period | (826) | (609) |
Mortgage servicing rights, net | 60,702 | 61,476 |
Fair value of mortgage servicing rights | 68,037 | 73,149 |
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) | $ 7,908,799 | $ 7,974,742 |
Mortgage servicing rights, net to servicing portfolio | 0.77% | 0.77% |
Mortgage servicing rights expense | $ 2,694 | $ 12,127 |
Goodwill and Intangible Asset63
Goodwill and Intangible Assets, Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Core Deposit Intangibles | ||
Estimated future amortization expense | ||
Nine months ending December 31, 2017 | $ 45 | |
Year ending December 31, 2018 | 0 | |
Year ending December 31, 2019 | 0 | |
Year ending December 31, 2020 | 0 | |
Year ending December 31, 2021 | 0 | |
Year ending December 31, 2022 | 0 | |
Beyond 2,022 | 0 | |
Total Estimated Amortization Expense | 45 | $ 112 |
Other Intangible Assets | ||
Estimated future amortization expense | ||
Nine months ending December 31, 2017 | 1,351 | |
Year ending December 31, 2018 | 1,771 | |
Year ending December 31, 2019 | 1,472 | |
Year ending December 31, 2020 | 1,355 | |
Year ending December 31, 2021 | 1,331 | |
Year ending December 31, 2022 | 1,308 | |
Beyond 2,022 | 6,393 | |
Total Estimated Amortization Expense | 14,981 | $ 15,265 |
Mortgage Servicing Rights | ||
Estimated future amortization expense | ||
Nine months ending December 31, 2017 | 7,275 | |
Year ending December 31, 2018 | 8,389 | |
Year ending December 31, 2019 | 7,100 | |
Year ending December 31, 2020 | 6,025 | |
Year ending December 31, 2021 | 5,128 | |
Year ending December 31, 2022 | 4,385 | |
Beyond 2,022 | 23,226 | |
Total Estimated Amortization Expense | $ 61,528 |
Goodwill and Intangible Asset64
Goodwill and Intangible Assets (Details Textuals) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017USD ($)acquisition | Mar. 31, 2016USD ($)acquisition | Dec. 31, 2016USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill acquired during period | $ 55 | $ 3,000 | |
Additions to finite-lived intangible assets | $ 162 | $ 1,000 | |
Number of Acquisitions | acquisition | 1 | 2 | |
Goodwill | $ 972,006 | $ 971,951 |
Short and Long-Term Funding (Co
Short and Long-Term Funding (Components of Short-term and Long-term Funding) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Short-term Funding [Abstract] | |||
Federal funds purchased | $ 323,365 | $ 208,150 | |
Securities sold under agreements to repurchase | 326,823 | 300,197 | |
Federal funds purchased and securities sold under agreements to repurchase | 650,188 | 508,347 | |
FHLB advances | 309,000 | 482,000 | |
Commercial paper | 121,679 | 101,688 | |
Other short-term funding | 430,679 | 583,688 | |
Total short-term funding | 1,080,867 | 1,092,035 | |
Long-term Funding | |||
FHLB advances | 2,265,180 | 2,265,188 | |
Senior notes, at par | 250,000 | 250,000 | |
Subordinated notes, at par | 250,000 | 250,000 | |
Other long-term funding and capitalized costs | (3,225) | (3,393) | |
Total long-term funding | [1] | 2,761,955 | 2,761,795 |
Total short and long-term funding | $ 3,842,822 | $ 3,853,830 | |
[1] | (1)Effective January 1, 2017, residential loans originated for sale are accounted for under the fair value option. Prior periods have not been restated. For more information on this accounting policy change, please refer to Note 3 to the Notes to the Consolidated Financial Statements. |
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 | Mar. 31, 2017 | Dec. 31, 2016 |
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | $ 326,823 | $ 300,197 |
Overnight and Continuous | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | 326,823 | 300,197 |
Up to 30 days | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
30-90 days | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Agency mortgage-related securities | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | 326,823 | 300,197 |
Agency mortgage-related securities | Overnight and Continuous | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | 326,823 | 300,197 |
Agency mortgage-related securities | Up to 30 days | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Agency mortgage-related securities | 30-90 days | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Agency mortgage-related securities | Greater than 90 days | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | $ 0 | $ 0 |
Short and Long-Term Funding (Lo
Short and Long-Term Funding (Long-term Funding Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Nov. 30, 2014 | Mar. 31, 2017 | Dec. 31, 2016 | |
Subordinated Borrowing [Line Items] | |||
Carrying Value of Securities Purchased under Agreements to Resell and Deposits Paid for Securities Borrowed | $ 481 | ||
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 0.68% | 0.50% | |
Two Thousand Fourteen Senior Notes | |||
Subordinated Borrowing [Line Items] | |||
New Senior Debt Issued | $ 250 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | ||
Two Thousand Fourteen Subordinated Notes | |||
Subordinated Borrowing [Line Items] | |||
Junior Subordinated Debentures Issued | $ 250 | ||
Debt Instrument, Term | 10 years | ||
Subordinated Borrowing, Interest Rate | 4.25% |
Derivative and Hedging Activi68
Derivative and Hedging Activities, Derivative Instruments Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Trading assets | Interest rate-related instruments — customer and mirror | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | $ 2,098,658 | $ 2,039,323 |
Fair Value | 31,841 | 33,671 |
Trading assets | Foreign currency exchange forwards | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 83,012 | 109,675 |
Fair Value | 812 | 2,002 |
Trading assets | Commodity contracts | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 301,425 | 127,582 |
Fair Value | 16,653 | 16,725 |
Trading liabilities | Interest rate-related instruments — customer and mirror | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 2,098,658 | 2,039,323 |
Fair Value | (31,113) | (33,188) |
Trading liabilities | Foreign currency exchange forwards | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 80,227 | 106,251 |
Fair Value | (774) | (1,943) |
Trading liabilities | Commodity contracts | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 300,011 | 128,368 |
Fair Value | (15,674) | (15,972) |
Other assets | Interest rate lock commitments (mortgage) | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 291,674 | 285,345 |
Fair Value | 1,803 | 206 |
Other assets | Forward commitments (mortgage) | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 179,600 | |
Fair Value | 2,908 | |
Other assets | Purchased options (time deposit) | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 80,116 | 80,554 |
Fair Value | 2,290 | 2,576 |
Other liabilities | Forward commitments (mortgage) | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 100,750 | |
Fair Value | (373) | |
Other liabilities | Written options (time deposit) | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 80,116 | 80,554 |
Fair Value | $ (2,290) | $ (2,576) |
Derivative and Hedging Activi69
Derivative and Hedging Activities, Income Statement Category of the Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Capital market fees, net | Interest rate-related instruments — customer and mirror | ||
Gain (loss) on derivative instruments not designated as hedging instruments | ||
Gain / (Loss) Recognized in Income | $ 245 | $ (870) |
Capital market fees, net | Foreign currency exchange forwards | ||
Gain (loss) on derivative instruments not designated as hedging instruments | ||
Gain / (Loss) Recognized in Income | (21) | (28) |
Capital market fees, net | Commodity contracts | ||
Gain (loss) on derivative instruments not designated as hedging instruments | ||
Gain / (Loss) Recognized in Income | 226 | 0 |
Mortgage banking, net | Interest rate lock commitments (mortgage) | ||
Gain (loss) on derivative instruments not designated as hedging instruments | ||
Gain / (Loss) Recognized in Income | 1,597 | 1,731 |
Mortgage banking, net | Forward commitments (mortgage) | ||
Gain (loss) on derivative instruments not designated as hedging instruments | ||
Gain / (Loss) Recognized in Income | $ (3,281) | $ (2,135) |
Derivative and Hedging Activi70
Derivative and Hedging Activities (Details Textuals) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Investment securities and cash equivalents pledged as collateral | $ 25 | $ 40 |
Derivative collateral right to reclaim cash | $ 0 | $ 0 |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) - Interest and commodity agreements - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Offsetting Derivative Assets [Abstract] | ||
Gross amounts recognized | $ 23,374 | $ 18,031 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts presented in the balance sheet | 23,374 | 18,031 |
Financial instruments | (19,022) | (18,031) |
Collateral | (4,352) | 0 |
Net amount | 0 | 0 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts recognized | 19,022 | 31,075 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts presented in the balance sheet | 19,022 | 31,075 |
Financial instruments | (19,022) | (18,031) |
Collateral | 0 | (11,148) |
Net amount | $ 0 | $ 1,896 |
Commitments, Off-Balance Shee72
Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings, Summary of Lending Related and Other Commitments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of lending-related and other commitments [Line Items] | ||
Lending related commitments, fair value | $ 0 | $ 0 |
Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale | ||
Summary of lending-related and other commitments | ||
Lending related commitments | 8,041,839 | 8,131,131 |
Commercial Letters Of Credit | ||
Summary of lending-related and other commitments | ||
Lending related commitments | 7,490 | 7,923 |
Standby Letters of Credit | ||
Summary of lending-related and other commitments | ||
Lending related commitments | 268,612 | 259,632 |
Standby letters of credit, fair value | $ 3,000 | $ 3,000 |
Commitments, Off-Balance Shee73
Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings Residential Mortgage Repurchase Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Residential mortgage repurchase reserve | ||
Balance at beginning of period | $ 25,000 | |
Balance at end of period | 24,000 | $ 25,000 |
Mortgage Repurchase Reserve | ||
Residential mortgage repurchase reserve | ||
Balance at beginning of period | 900 | 1,197 |
Repurchase provision expense | 59 | 456 |
Adjustments to provision expense | 0 | (750) |
Charge offs, net | 0 | (3) |
Balance at end of period | $ 959 | $ 900 |
Commitments, Off-Balance Shee74
Commitments, Off-Balance Sheet Arrangements, and Legal Proceedings (Details Textuals) $ in Thousands | Jan. 11, 2016USD ($)complaint | May 22, 2015USD ($)loan_production_officebranch | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Textuals) [Line Items] | ||||
unfunded commitments | $ 24,000 | $ 25,000 | ||
Carrying value of investments | 111,000 | 85,000 | ||
Commitments under unconsolidated projects | 80,000 | 69,000 | ||
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 | 112 | 2,000 | ||
Loans sold to outside investors original amount | 9,400,000 | |||
Loans sold to outside investors remaining outstanding amount | 6,100,000 | |||
Residential mortgage loans sold with recourse risk | 45,000 | 62,000 | ||
Residential mortgage loans sold with credit recourse risk | $ 92,000 | $ 98,000 | ||
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 |
Fair Value Measurements, Assets
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investment securities available for sale: | ||
Investment securities available for sale | $ 4,300,490 | $ 4,680,226 |
Trading assets | 49,306 | 52,398 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 47,561 | 51,103 |
Fair Value, Inputs, Level 1 | ||
Investment securities available for sale: | ||
Investment securities available for sale | 2,606 | 2,602 |
Fair Value, Inputs, Level 2 | ||
Investment securities available for sale: | ||
Investment securities available for sale | 4,297,884 | 4,677,424 |
Trading assets | 51,596 | 54,974 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 49,851 | 53,679 |
Fair Value, Inputs, Level 3 | ||
Investment securities available for sale: | ||
Investment securities available for sale | 0 | 200 |
Trading assets | 1,803 | 3,114 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 373 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | US Treasury Securities | ||
Investment securities available for sale: | ||
Investment securities available for sale | 1,005 | 1,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Other Debt And Other Equity Securities | ||
Investment securities available for sale: | ||
Investment securities available for sale | 1,601 | 1,602 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Total investment securities available for sale | ||
Investment securities available for sale: | ||
Investment securities available for sale | 2,606 | 2,602 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | FNMA / FHLMC | ||
Investment securities available for sale: | ||
Investment securities available for sale | 590,419 | 639,930 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | GNMA | ||
Investment securities available for sale: | ||
Investment securities available for sale | 2,039,826 | 2,004,475 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Private Label | ||
Investment securities available for sale: | ||
Investment securities available for sale | 1,102 | 1,121 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | GNMA Commercial Mortgage-Related Securities | ||
Investment securities available for sale: | ||
Investment securities available for sale | 1,663,337 | 2,028,898 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Debt And Other Equity Securities | ||
Investment securities available for sale: | ||
Investment securities available for sale | 3,200 | 3,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Total investment securities available for sale | ||
Investment securities available for sale: | ||
Investment securities available for sale | 4,297,884 | 4,677,424 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Residential Loans Held For Sale Member | ||
Investment securities available for sale: | ||
Trading assets | 34,051 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Interest rate-related instruments — customer and mirror | ||
Investment securities available for sale: | ||
Trading assets | 31,841 | 33,671 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 31,113 | 33,188 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Foreign currency exchange forwards | ||
Investment securities available for sale: | ||
Trading assets | 812 | 2,002 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 774 | 1,943 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Commodity contracts | ||
Investment securities available for sale: | ||
Trading assets | 16,653 | 16,725 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 15,674 | 15,972 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Purchased options (time deposit) | ||
Investment securities available for sale: | ||
Trading assets | 2,290 | 2,576 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 2,290 | 2,576 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Other Debt And Other Equity Securities | ||
Investment securities available for sale: | ||
Investment securities available for sale | 0 | 200 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Total investment securities available for sale | ||
Investment securities available for sale: | ||
Investment securities available for sale | 0 | 200 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Interest rate lock commitments (mortgage) | ||
Investment securities available for sale: | ||
Trading assets | 1,803 | 206 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Forward commitments (mortgage) | ||
Investment securities available for sale: | ||
Trading assets | 0 | 2,908 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | $ 373 | $ 0 |
Fair Value Measurements, Asse76
Fair Value Measurements, Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Total investment securities available for sale | ||
Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) | ||
Beginning Balance | $ 200 | $ 200 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | (200) | |
Ending Balance | 0 | 200 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Mortgage derivative loss | 0 | 0 |
Derivative Financial Instruments | ||
Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | 3,114 | 1,361 |
Mortgage derivative loss | (1,684) | 1,753 |
Ending Balance | $ 1,430 | $ 3,114 |
Fair Value Measurements, Asse77
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | |||
Mortgage servicing rights | $ 60,702 | $ 61,476 | |
Mortgage Servicing Rights (MSR) Impairment (Recovery) | 217 | $ 909 | |
Fair Value, Inputs, Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | |||
Commercial Loans Held-for-sale, Fair Value Disclosure | 2,901 | 12,474 | |
Residential Held-for-sale, Fair Value Disclosure | 34,051 | 108,010 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | |||
Commercial Loans Held-for-sale, Fair Value Disclosure | 2,901 | 12,474 | |
Provision for Credit Losses, Commercial Loans held-for-sale | 0 | (559) | |
Residential Held-for-sale, Fair Value Disclosure | 108,010 | ||
Mortgage banking, net | (3,760) | ||
Other Real Estate Owned Fair Value Disclosure | 921 | 9,752 | |
Foreclosure / OREO expense, net | (583) | (1,091) | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 | |||
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | |||
Impaired loans | 93,552 | 79,270 | |
Provision for Credit Losses, Impaired Loans | (25,785) | (75,194) | |
Mortgage servicing rights | 68,037 | 73,149 | |
Mortgage Servicing Rights (MSR) Impairment (Recovery) | $ (217) | $ 200 |
Fair Value Measurements, Fair V
Fair Value Measurements, Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Financial assets | |||
Cash and due from banks | $ 332,601 | $ 446,558 | |
Interest-bearing deposits in other financial institutions | 337,167 | 149,175 | |
Federal funds sold and securities purchased under agreements to resell | 19,700 | 46,500 | |
Investment securities held to maturity | 1,554,843 | 1,273,536 | |
Investment securities held to maturity, fair value | 1,550,322 | 1,264,674 | |
Investment securities available for sale | 4,300,490 | 4,680,226 | |
FHLB and Federal Reserve Bank stocks | 139,273 | 140,001 | |
Commercial loans held for sale | 2,901 | 12,474 | |
Loans, net | 19,865,011 | 19,776,381 | |
Derivatives (trading and other assets) | 49,306 | 52,398 | |
Financial liabilities | |||
Short-term funding | 1,080,867 | 1,092,035 | |
Long-term funding | [1] | 2,761,955 | 2,761,795 |
Derivatives (trading and other liabilities) | 47,561 | 51,103 | |
Letters of Credit Outstanding, Amount | 269,000 | 260,000 | |
Fair Value, Inputs, Level 1 | |||
Financial assets | |||
Cash and due from banks | 332,601 | 446,558 | |
Cash and due from banks, Fair Value | 332,601 | 446,558 | |
Interest-bearing deposits in other financial institutions | 337,167 | 149,175 | |
Interest-bearing deposits in other financial institutions, fair value | 337,167 | 149,175 | |
Federal funds sold and securities purchased under agreements to resell | 19,700 | 46,500 | |
Federal funds sold and securities purchased under agreements to resell, fair value | 19,700 | 46,500 | |
Investment securities available for sale | 2,606 | 2,602 | |
Investment securities available for sale, at fair value | 2,606 | 2,602 | |
Fair Value, Inputs, Level 2 | |||
Financial assets | |||
Investment securities held to maturity | 1,554,843 | 1,273,536 | |
Investment securities held to maturity, fair value | 1,550,322 | 1,264,674 | |
Investment securities available for sale | 4,297,884 | 4,677,424 | |
Investment securities available for sale, at fair value | 4,297,884 | 4,677,424 | |
FHLB and Federal Reserve Bank stocks | 139,273 | 140,001 | |
Federal Home Loan Bank and Federal Reserve Bank stocks, fair value | 139,273 | 140,001 | |
Commercial loans held for sale | 2,901 | 12,474 | |
Commercial Loans Held-for-sale, Fair Value Disclosure | 2,901 | 12,474 | |
Residential Loans on Real Estate, Carrying Amount of Mortgages | 34,051 | 108,010 | |
Residential Held-for-sale, Fair Value Disclosure | 34,051 | 108,010 | |
Bank owned life insurance | 587,600 | 585,290 | |
Bank owned life insurance, fair value | 587,600 | 585,290 | |
Derivatives (trading and other assets) | 51,596 | 54,974 | |
Derivatives (trading and other assets), fair value | 51,596 | 54,974 | |
Financial liabilities | |||
Brokered CDs and other time deposits | 1,614,909 | 1,606,127 | |
Brokered CDs and other time deposits, fair value | 1,614,909 | 1,606,127 | |
Short-term funding | 1,080,867 | 1,092,035 | |
Short-term funding, fair value | 1,080,867 | 1,092,035 | |
Long-term funding | 2,761,955 | 2,761,795 | |
Long-term funding, fair value | 2,790,093 | 2,791,841 | |
Standby letters of credit | 2,648 | 2,566 | |
Standby letters of credit, fair value | 2,648 | 2,566 | |
Derivatives (trading and other liabilities) | 49,851 | 53,679 | |
Derivatives (trading and other liabilities), fair value | 49,851 | 53,679 | |
Fair Value, Inputs, Level 3 | |||
Financial assets | |||
Investment securities available for sale | 0 | 200 | |
Investment securities available for sale, at fair value | 0 | 200 | |
Loans, net | 19,865,011 | 19,776,381 | |
Loans, net, fair value | 19,752,810 | 19,680,317 | |
Derivatives (trading and other assets) | 1,803 | 3,114 | |
Derivatives (trading and other assets), fair value | 1,803 | 3,114 | |
Financial liabilities | |||
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts | 20,213,126 | 20,282,321 | |
Noninterest-bearing demand, savings, interest-bearing demand, and money market deposits, fair value | 20,213,126 | 20,282,321 | |
Derivatives (trading and other liabilities) | 373 | 0 | |
Derivatives (trading and other liabilities), fair value | $ 373 | $ 0 | |
[1] | (1)Effective January 1, 2017, residential loans originated for sale are accounted for under the fair value option. Prior periods have not been restated. For more information on this accounting policy change, please refer to Note 3 to the Notes to the Consolidated Financial Statements. |
Fair Value Measurements (Detail
Fair Value Measurements (Details Textuals) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value of Assets and Liabilities [Line Items] | |
Closing ratio | 90.00% |
Weighted average discount rate | 10.60% |
Weighted average constant prepayment rate | 10.90% |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Plan: | ||
Net period benefit cost for the pension and postretirement plans | ||
Service cost | $ 1,781 | $ 1,725 |
Interest cost | 1,756 | 1,780 |
Expected return on plan assets | (4,881) | (5,065) |
Amortization of prior service cost | (19) | 13 |
Amortization of actuarial loss | 488 | 482 |
Total net pension cost | (875) | (1,065) |
Postretirement Plan: | ||
Net period benefit cost for the pension and postretirement plans | ||
Interest cost | 24 | 36 |
Amortization of prior service cost | (19) | 0 |
Total net pension cost | $ 5 | $ 36 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Income Statement Data Abstract | ||
Net interest income | $ 180,274 | $ 171,987 |
Noninterest income | 79,831 | 83,192 |
Total revenue | 260,105 | 255,179 |
Credit provision | 9,000 | 20,000 |
Noninterest expense | 173,691 | 173,971 |
Income (loss) before income taxes | 77,414 | 61,208 |
Income tax expense (benefit) | 21,144 | 18,674 |
Net income | $ 56,270 | $ 42,534 |
Return on average allocated capital (ROCET1) | 10.60% | 8.60% |
Segment Balance Sheet Data | ||
Average earning assets | $ 26,339,314 | $ 25,272,373 |
Average loans | 20,072,725 | 18,922,830 |
Average deposits | 21,465,722 | 20,575,174 |
Average allocated capital (CET1) | 2,061,749 | 1,896,481 |
Operating Segments | Corporate and Commercial Specialty | ||
Segment Income Statement Data Abstract | ||
Net interest income | 89,388 | 79,164 |
Noninterest income | 11,993 | 11,613 |
Total revenue | 101,381 | 90,777 |
Credit provision | 11,580 | 12,739 |
Noninterest expense | 37,479 | 34,403 |
Income (loss) before income taxes | 52,322 | 43,635 |
Income tax expense (benefit) | 17,649 | 14,579 |
Net income | $ 34,673 | $ 29,056 |
Return on average allocated capital (ROCET1) | 12.60% | 11.30% |
Segment Balance Sheet Data | ||
Average earning assets | $ 10,759,811 | $ 9,720,028 |
Average loans | 10,753,314 | 9,711,221 |
Average deposits | 6,420,401 | 5,918,341 |
Average allocated capital (CET1) | 1,114,610 | 1,031,659 |
Operating Segments | Community, Consumer, and Business | ||
Segment Income Statement Data Abstract | ||
Net interest income | 88,928 | 85,605 |
Noninterest income | 64,870 | 63,748 |
Total revenue | 153,798 | 149,353 |
Credit provision | 4,507 | 6,142 |
Noninterest expense | 116,097 | 121,295 |
Income (loss) before income taxes | 33,194 | 21,916 |
Income tax expense (benefit) | 11,618 | 7,670 |
Net income | $ 21,576 | $ 14,246 |
Return on average allocated capital (ROCET1) | 15.20% | 9.10% |
Segment Balance Sheet Data | ||
Average earning assets | $ 9,130,457 | $ 9,120,319 |
Average loans | 9,128,656 | 9,119,020 |
Average deposits | 11,337,064 | 11,100,195 |
Average allocated capital (CET1) | 576,464 | 627,211 |
Operating Segments | Risk Management and Shared Services | ||
Segment Income Statement Data Abstract | ||
Net interest income | 1,958 | 7,218 |
Noninterest income | 2,968 | 7,831 |
Total revenue | 4,926 | 15,049 |
Credit provision | (7,087) | 1,119 |
Noninterest expense | 20,115 | 18,273 |
Income (loss) before income taxes | (8,102) | (4,343) |
Income tax expense (benefit) | (8,123) | (3,575) |
Net income | $ 21 | $ (768) |
Return on average allocated capital (ROCET1) | (2.50%) | (5.00%) |
Segment Balance Sheet Data | ||
Average earning assets | $ 6,449,046 | $ 6,432,026 |
Average loans | 190,755 | 92,589 |
Average deposits | 3,708,257 | 3,556,638 |
Average allocated capital (CET1) | $ 370,675 | $ 237,611 |
Accumulated Other Comprehensi82
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | $ (54,679) | |
Personnel expense | (104,419) | $ (101,398) |
Interest income (Amortization of net unrealized gains (losses) on available for sale securities transferred to held to maturity securities) | (1,027) | (1,572) |
Total other comprehensive income (loss) | (1,665) | 34,783 |
Ending Balance | (56,344) | |
Investments Securities Available For Sale | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (20,079) | 459 |
Other comprehensive income (loss) before reclassifications | (2,112) | 60,422 |
Investment securities gain, net | (3,098) | |
Personnel expense | 0 | 0 |
Interest income (Amortization of net unrealized gains (losses) on available for sale securities transferred to held to maturity securities) | (1,027) | (1,572) |
Income tax (expense) benefit | 1,195 | (21,275) |
Total other comprehensive income (loss) | (1,944) | 34,477 |
Ending Balance | (22,023) | 34,936 |
Defined Benefit Pension and Post Retirement Obligations | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (34,600) | (33,075) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Investment securities gain, net | 0 | |
Personnel expense | 450 | 495 |
Interest income (Amortization of net unrealized gains (losses) on available for sale securities transferred to held to maturity securities) | 0 | 0 |
Income tax (expense) benefit | (171) | (189) |
Total other comprehensive income (loss) | 279 | 306 |
Ending Balance | (34,321) | (32,769) |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (54,679) | (32,616) |
Other comprehensive income (loss) before reclassifications | (2,112) | 60,422 |
Investment securities gain, net | (3,098) | |
Personnel expense | 450 | 495 |
Interest income (Amortization of net unrealized gains (losses) on available for sale securities transferred to held to maturity securities) | (1,027) | (1,572) |
Income tax (expense) benefit | 1,024 | (21,464) |
Total other comprehensive income (loss) | (1,665) | 34,783 |
Ending Balance | $ (56,344) | $ 2,167 |