Georgia | 58-1134883 | |
(State or other jurisdiction ofincorporation or organization) | (I.R.S. EmployerIdentification No.) |
1111 Bay Avenue Suite 500, Columbus, Georgia | 31901 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered |
Common Stock, $1.00 Par Value Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D | New York Stock Exchange New York Stock Exchange |
Large accelerated filer | x | Accelerated filer | ¨ |
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Emerging growth company | ¨ |
Class | |||||
Common Stock, $1.00 Par Value |
Page | ||||
Financial Information | ||||
Index of Defined Terms | ||||
Item 1. | Financial Statements (Unaudited) | |||
Consolidated Balance Sheets as of | ||||
Consolidated Statements of Income for the | ||||
Consolidated Statements of Comprehensive Income for the | ||||
Consolidated Statements of Changes in Shareholders' Equity for the | ||||
Consolidated Statements of Cash Flows for the | ||||
Notes to Unaudited Interim Consolidated Financial Statements | ||||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |||
Item 3. | ||||
Item 4. | Controls and Procedures | |||
Other Information | ||||
Item 1. | Legal Proceedings | |||
Item 1A. | Risk Factors | |||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||
Item 3. | Defaults Upon Senior Securities | |||
Item 4. | Mine Safety Disclosures | |||
Item 5. | Other Information | |||
Item 6. | Exhibits | |||
Signatures | ||||
(in thousands, except share and per share data) | June 30, 2018 | December 31, 2017 | March 31, 2019 | December 31, 2018 | ||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | 404,080 | $ | 397,848 | $ | 519,681 | $ | 468,426 | ||||||
Interest bearing funds with Federal Reserve Bank | 613,082 | 460,928 | ||||||||||||
Interest-bearing funds with Federal Reserve Bank | 688,470 | 641,476 | ||||||||||||
Interest earning deposits with banks | 33,754 | 26,311 | 24,147 | 19,841 | ||||||||||
Federal funds sold and securities purchased under resale agreements | 40,872 | 47,846 | 33,627 | 13,821 | ||||||||||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | 1,091,788 | 932,933 | 1,265,925 | 1,143,564 | ||||||||||
Mortgage loans held for sale, at fair value | 53,673 | 48,024 | 55,970 | 37,129 | ||||||||||
Investment securities available for sale, at fair value | 3,929,962 | 3,987,069 | 6,808,191 | 3,991,632 | ||||||||||
Loans, net of deferred fees and costs | 25,134,056 | 24,787,464 | ||||||||||||
Loans | 35,634,501 | 25,946,573 | ||||||||||||
Allowance for loan losses | (251,725 | ) | (249,268 | ) | (257,036 | ) | (250,555 | ) | ||||||
Loans, net | 24,882,331 | 24,538,196 | 35,377,465 | 25,696,018 | ||||||||||
Cash surrender value of bank-owned life insurance | 547,261 | 540,958 | 761,098 | 554,134 | ||||||||||
Premises and equipment, net | 428,633 | 426,813 | 479,965 | 434,307 | ||||||||||
Goodwill | 57,315 | 57,315 | 485,000 | 57,315 | ||||||||||
Other intangible assets | 10,458 | 11,254 | 74,683 | 9,875 | ||||||||||
Deferred tax asset, net | 182,983 | 165,788 | ||||||||||||
Other assets | 555,901 | 513,487 | 1,321,728 | 745,218 | ||||||||||
Total assets | $ | 31,740,305 | $ | 31,221,837 | $ | 46,630,025 | $ | 32,669,192 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
Liabilities | ||||||||||||||
Deposits: | ||||||||||||||
Non-interest bearing deposits | $ | 7,630,491 | $ | 7,686,339 | ||||||||||
Interest bearing deposits, excluding brokered deposits | 16,961,187 | 16,500,436 | ||||||||||||
Brokered deposits | 1,851,010 | 1,961,125 | ||||||||||||
Non-interest-bearing deposits | $ | 9,144,315 | $ | 7,650,967 | ||||||||||
Interest-bearing deposits | 28,930,875 | 19,069,355 | ||||||||||||
Total deposits | 26,442,688 | 26,147,900 | 38,075,190 | 26,720,322 | ||||||||||
Federal funds purchased and securities sold under repurchase agreements | 207,580 | 161,190 | 314,383 | 237,692 | ||||||||||
Other short-term borrowings | 853,000 | 650,000 | ||||||||||||
Long-term debt | 1,656,647 | 1,706,138 | 2,106,037 | 1,657,157 | ||||||||||
Other liabilities | 265,696 | 245,043 | 683,662 | 270,419 | ||||||||||
Total liabilities | 28,572,611 | 28,260,271 | 42,032,272 | 29,535,590 | ||||||||||
Shareholders' Equity | ||||||||||||||
Series D Preferred Stock – no par value. Authorized 100,000,000 shares; 8,000,000 shares issued and outstanding at June 30, 2018 | 195,138 | — | ||||||||||||
Series C Preferred Stock - no par value. 5,200,000 shares outstanding at June 30, 2018 and December 31, 2017 | 125,980 | 125,980 | ||||||||||||
Common stock - $1.00 par value. Authorized 342,857,143 shares; 143,077,973 issued at June 30, 2018 and 142,677,449 issued at December 31, 2017; 117,841,369 outstanding at June 30, 2018 and 118,897,295 outstanding at December 31, 2017 | 143,078 | 142,678 | ||||||||||||
Series D Preferred Stock – no par value. Authorized 100,000,000 shares; 8,000,000 shares issued and outstanding at March 31, 2019 and December 31, 2018 | 195,140 | 195,140 | ||||||||||||
Common stock - $1.00 par value. Authorized 342,857,143 shares; 165,929,349 issued at March 31, 2019 and 143,300,449 issued at December 31, 2018; 157,454,007 outstanding at March 31, 2019 and 115,865,510 outstanding at December 31, 2018 | 165,929 | 143,300 | ||||||||||||
Additional paid-in capital | 3,045,014 | 3,043,129 | 3,794,262 | 3,060,561 | ||||||||||
Treasury stock, at cost – 25,236,604 shares at June 30, 2018 and 23,780,154 shares at December 31, 2017 | (916,484 | ) | (839,674 | ) | ||||||||||
Accumulated other comprehensive loss | (125,720 | ) | (54,754 | ) | ||||||||||
Treasury stock, at cost – 8,475,342 shares at March 31, 2019 and 27,434,939 shares at December 31, 2018 | (319,898 | ) | (1,014,746 | ) | ||||||||||
Accumulated other comprehensive loss, net | (18,342 | ) | (94,420 | ) | ||||||||||
Retained earnings | 700,688 | 544,207 | 780,662 | 843,767 | ||||||||||
Total shareholders’ equity | 3,167,694 | 2,961,566 | 4,597,753 | 3,133,602 | ||||||||||
Total liabilities and shareholders' equity | $ | 31,740,305 | $ | 31,221,837 | $ | 46,630,025 | $ | 32,669,192 | ||||||
Six Months Ended June 30, | Three Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||
(in thousands, except per share data) | 2018 | 2017 | 2018 | 2017 | 2019 | 2018 | ||||||||||||||||
Interest income: | ||||||||||||||||||||||
Loans, including fees | $ | 585,396 | $ | 511,319 | $ | 300,056 | $ | 261,971 | $ | 447,769 | $ | 285,340 | ||||||||||
Investment securities available for sale | 47,812 | 40,099 | 23,884 | 20,266 | 49,938 | 23,928 | ||||||||||||||||
Trading account assets | 220 | 49 | 166 | 21 | ||||||||||||||||||
Mortgage loans held for sale | 936 | 972 | 557 | 505 | 391 | 379 | ||||||||||||||||
Federal Reserve Bank balances | 4,568 | 2,515 | 2,818 | 1,304 | 3,671 | 1,750 | ||||||||||||||||
Other earning assets | 4,036 | 2,957 | 2,353 | 1,443 | 3,070 | 1,737 | ||||||||||||||||
Total interest income | 642,968 | 557,911 | 329,834 | 285,510 | 504,839 | 313,134 | ||||||||||||||||
Interest expense: | ||||||||||||||||||||||
Deposits | 58,975 | 35,075 | 32,600 | 18,118 | 87,684 | 26,375 | ||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 310 | 84 | 203 | 45 | ||||||||||||||||||
Federal funds purchased, securities sold under repurchase agreements, and other short-term borrowings | 3,463 | 1,601 | ||||||||||||||||||||
Long-term debt | 24,822 | 31,728 | 12,454 | 16,250 | 16,517 | 10,874 | ||||||||||||||||
Total interest expense | 84,107 | 66,887 | 45,257 | 34,413 | 107,664 | 38,850 | ||||||||||||||||
Net interest income | 558,861 | 491,024 | 284,577 | 251,097 | 397,175 | 274,284 | ||||||||||||||||
Provision for loan losses | 24,566 | 18,934 | 11,790 | 10,260 | 23,569 | 12,776 | ||||||||||||||||
Net interest income after provision for loan losses | 534,295 | 472,090 | 272,787 | 240,837 | 373,606 | 261,508 | ||||||||||||||||
Non-interest income: | ||||||||||||||||||||||
Service charges on deposit accounts | 39,938 | 40,370 | 19,999 | 20,252 | 20,859 | 19,940 | ||||||||||||||||
Fiduciary and asset management fees | 27,419 | 24,676 | 13,983 | 12,524 | 13,578 | 13,435 | ||||||||||||||||
Card fees | 21,032 | 19,885 | 10,833 | 10,041 | 10,877 | 10,199 | ||||||||||||||||
Brokerage revenue | 17,596 | 14,436 | 8,900 | 7,210 | 9,406 | 8,695 | ||||||||||||||||
Mortgage banking income | 9,887 | 11,548 | 4,839 | 5,784 | 5,054 | 5,047 | ||||||||||||||||
Income from bank-owned life insurance | 7,949 | 6,328 | 3,733 | 3,272 | 5,290 | 4,217 | ||||||||||||||||
Investment securities (losses) gains, net | (1,296 | ) | 7,667 | (1,296 | ) | (1 | ) | |||||||||||||||
Decrease in fair value of private equity investments, net | (3,093 | ) | (3,166 | ) | (37 | ) | (1,352 | ) | ||||||||||||||
Other fee income | 9,877 | 11,033 | 5,259 | 6,164 | ||||||||||||||||||
Swap fee income | 4,778 | 690 | ||||||||||||||||||||
Investment securities gains, net | 75 | — | ||||||||||||||||||||
Other non-interest income | 11,124 | 7,762 | 7,174 | 4,807 | 9,461 | 4,823 | ||||||||||||||||
Total non-interest income | 140,433 | 140,539 | 73,387 | 68,701 | 79,378 | 67,046 | ||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||
Salaries and other personnel expense | 225,583 | 212,404 | 111,863 | 105,213 | 139,427 | 113,720 | ||||||||||||||||
Net occupancy and equipment expense | 64,134 | 59,264 | 32,654 | 29,933 | 38,394 | 31,480 | ||||||||||||||||
Third-party processing expense | 29,012 | 26,223 | 15,067 | 13,620 | 17,758 | 13,945 | ||||||||||||||||
FDIC insurance and other regulatory fees | 13,335 | 13,645 | 6,543 | 6,875 | 6,761 | 6,793 | ||||||||||||||||
Professional fees | 11,789 | 12,907 | 6,284 | 7,551 | 6,348 | 5,505 | ||||||||||||||||
Advertising expense | 10,312 | 11,258 | 5,220 | 5,346 | 5,123 | 5,092 | ||||||||||||||||
Valuation adjustment to Visa derivative | 2,328 | — | 2,328 | — | ||||||||||||||||||
Foreclosed real estate expense, net | 749 | 3,582 | (107 | ) | 1,448 | |||||||||||||||||
Earnout liability adjustment | — | 1,707 | — | 1,707 | ||||||||||||||||||
Restructuring charges, net | (212 | ) | 6,524 | 103 | 13 | |||||||||||||||||
Amortization of intangibles | 3,392 | 292 | ||||||||||||||||||||
Merger-related expense | 49,738 | — | ||||||||||||||||||||
Other operating expenses | 42,204 | 41,619 | 24,102 | 20,041 | 25,469 | 18,352 | ||||||||||||||||
Total non-interest expense | 399,234 | 389,133 | 204,057 | 191,747 | 292,410 | 195,179 | ||||||||||||||||
Income before income taxes | 275,494 | 223,496 | 142,117 | 117,791 | 160,574 | 133,375 | ||||||||||||||||
Income tax expense | 61,146 | 75,635 | 30,936 | 41,788 | 40,388 | 30,209 | ||||||||||||||||
Net income | 214,348 | 147,861 | 111,181 | 76,003 | 120,186 | 103,166 | ||||||||||||||||
Dividends on preferred stock | 5,119 | 5,119 | 2,559 | 2,559 | ||||||||||||||||||
Less: Preferred stock dividends | 3,150 | 2,559 | ||||||||||||||||||||
Net income available to common shareholders | $ | 209,229 | $ | 142,742 | $ | 108,622 | $ | 73,444 | $ | 117,036 | $ | 100,607 | ||||||||||
Net income per common share, basic | $ | 1.77 | $ | 1.17 | $ | 0.92 | $ | 0.60 | $ | 0.73 | $ | 0.85 | ||||||||||
Net income per common share, diluted | 1.75 | 1.16 | 0.91 | 0.60 | 0.72 | 0.84 | ||||||||||||||||
Weighted average common shares outstanding, basic | 118,531 | 122,251 | 118,397 | 122,203 | 160,927 | 118,666 | ||||||||||||||||
Weighted average common shares outstanding, diluted | 119,229 | 123,043 | 119,139 | 123,027 | 162,760 | 119,321 | ||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||
(in thousands) | Before-tax Amount | Tax (Expense) Benefit | Net of Tax Amount | Before-tax Amount | Tax (Expense) Benefit | Net of Tax Amount | |||||||||||||||||
Net income | $ | 275,494 | $ | (61,146 | ) | $ | 214,348 | $ | 223,496 | $ | (75,635 | ) | $ | 147,861 | |||||||||
Net change related to cash flow hedges: | |||||||||||||||||||||||
Reclassification adjustment for losses realized in net income | — | — | — | 130 | (50 | ) | 80 | ||||||||||||||||
Net unrealized (losses) gains on investment securities available for sale: | |||||||||||||||||||||||
Reclassification adjustment for net losses (gains) realized in net income | 1,296 | (336 | ) | 960 | (7,667 | ) | 2,952 | (4,715 | ) | ||||||||||||||
Net unrealized (losses) gains arising during the period | (86,921 | ) | 22,512 | (64,409 | ) | 20,250 | (7,797 | ) | 12,453 | ||||||||||||||
Net unrealized (losses) gains | (85,625 | ) | 22,176 | (63,449 | ) | 12,583 | (4,845 | ) | 7,738 | ||||||||||||||
Post-retirement unfunded health benefit: | |||||||||||||||||||||||
Reclassification adjustment for gains realized in net income | (68 | ) | 22 | (46 | ) | (40 | ) | 16 | (24 | ) | |||||||||||||
Net unrealized (realized) gains | (68 | ) | 22 | (46 | ) | (40 | ) | 16 | (24 | ) | |||||||||||||
Other comprehensive (loss) income | $ | (85,693 | ) | $ | 22,198 | $ | (63,495 | ) | $ | 12,673 | $ | (4,879 | ) | $ | 7,794 | ||||||||
Comprehensive income | $ | 150,853 | $ | 155,655 | |||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||
(in thousands) | Before-tax Amount | Tax (Expense) Benefit | Net of Tax Amount | Before-tax Amount | Tax (Expense) Benefit | Net of Tax Amount | |||||||||||||||||
Net income | $ | 142,117 | $ | (30,936 | ) | $ | 111,181 | $ | 117,791 | $ | (41,788 | ) | $ | 76,003 | |||||||||
Net change related to cash flow hedges: | |||||||||||||||||||||||
Reclassification adjustment for losses realized in net income | — | — | — | 65 | (25 | ) | 40 | ||||||||||||||||
Net unrealized (losses) gains on investment securities available for sale: | |||||||||||||||||||||||
Reclassification adjustment for net losses realized in net income | 1,296 | (336 | ) | 960 | 1 | — | 1 | ||||||||||||||||
Net unrealized (losses) gains arising during the period | (25,476 | ) | 6,598 | (18,878 | ) | 11,150 | (4,293 | ) | 6,857 | ||||||||||||||
Net unrealized (losses) gains | (24,180 | ) | 6,262 | (17,918 | ) | 11,151 | (4,293 | ) | 6,858 | ||||||||||||||
Post-retirement unfunded health benefit: | |||||||||||||||||||||||
Reclassification adjustment for gains realized in net income | (34 | ) | 9 | (25 | ) | (20 | ) | 8 | (12 | ) | |||||||||||||
Net unrealized (realized) gains | (34 | ) | 9 | (25 | ) | (20 | ) | 8 | (12 | ) | |||||||||||||
Other comprehensive (loss) income | $ | (24,214 | ) | $ | 6,271 | $ | (17,943 | ) | $ | 11,196 | $ | (4,310 | ) | $ | 6,886 | ||||||||
Comprehensive income | $ | 93,238 | $ | 82,889 | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
(in thousands) | Before-tax Amount | Tax (Expense) Benefit | Net of Tax Amount | Before-tax Amount | Tax (Expense) Benefit | Net of Tax Amount | |||||||||||||||||
Net income | $ | 160,574 | $ | (40,388 | ) | $ | 120,186 | $ | 133,375 | $ | (30,209 | ) | $ | 103,166 | |||||||||
Net unrealized gains (losses) on investment securities available for sale: | |||||||||||||||||||||||
Reclassification adjustment for net gains realized in net income | (75 | ) | 19 | (56 | ) | — | — | — | |||||||||||||||
Net unrealized gains (losses) arising during the period | 102,785 | (26,621 | ) | 76,164 | (61,445 | ) | 15,914 | (45,531 | ) | ||||||||||||||
Net unrealized gains (losses) | 102,710 | (26,602 | ) | 76,108 | (61,445 | ) | 15,914 | (45,531 | ) | ||||||||||||||
Post-retirement unfunded health benefit: | |||||||||||||||||||||||
Reclassification adjustment for gains realized in net income | (35 | ) | 5 | (30 | ) | (34 | ) | 13 | (21 | ) | |||||||||||||
Other comprehensive income (loss) | $ | 102,675 | $ | (26,597 | ) | $ | 76,078 | $ | (61,479 | ) | $ | 15,927 | $ | (45,552 | ) | ||||||||
Comprehensive income | $ | 196,264 | $ | 57,614 | |||||||||||||||||||
(in thousands, except per share data) | Series D Preferred Stock | Series C Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total | Series C Preferred Stock | Series D Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2016 | $ | — | $ | 125,980 | $ | 142,026 | $ | 3,028,405 | $ | (664,595 | ) | $ | (55,659 | ) | $ | 351,767 | $ | 2,927,924 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 125,980 | $ | — | $ | 142,678 | $ | 3,043,129 | $ | (839,674 | ) | $ | (54,754 | ) | $ | 544,207 | $ | 2,961,566 | ||||||||||||||||||||||||||||||||||||||||||||
Cumulative-effect adjustment from adoption of ASU 2014-09 | — | — | — | — | — | — | (685 | ) | (685 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification from adoption of ASU 2018-02 | — | — | — | — | — | (7,588 | ) | 7,588 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative-effect adjustment from adoption of ASU 2016-01 | — | — | — | — | — | 117 | (117 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 103,166 | 103,166 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes | — | — | — | — | — | (45,552 | ) | — | (45,552 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared on common stock - $0.25 per share | — | — | — | — | — | — | (29,675 | ) | (29,675 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid on Series C Preferred Stock - $0.49 per share | — | — | — | — | — | — | (2,559 | ) | (2,559 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | — | — | — | — | (26,733 | ) | — | — | (26,733 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted share unit vesting and taxes paid related to net share settlement | — | — | 266 | (8,494 | ) | — | — | — | (8,228 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | 73 | 1,167 | — | — | — | 1,240 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | 3,955 | — | — | — | 3,955 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2018 | $ | 125,980 | $ | — | $ | 143,017 | $ | 3,039,757 | $ | (866,407 | ) | $ | (107,777 | ) | $ | 621,925 | $ | 2,956,495 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | — | $ | 195,140 | $ | 143,300 | $ | 3,060,561 | $ | (1,014,746 | ) | $ | (94,420 | ) | $ | 843,767 | $ | 3,133,602 | ||||||||||||||||||||||||||||||||||||||||||||
Cumulative-effect adjustment from adoption of ASU 2016-02 | — | — | — | — | — | — | 4,270 | 4,270 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 147,861 | 147,861 | — | — | — | — | — | — | 120,186 | 120,186 | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of income taxes | — | — | — | — | — | 7,794 | — | 7,794 | — | — | — | — | — | 76,078 | — | 76,078 | ||||||||||||||||||||||||||||||||||||||||||||||
FCB Acquisition: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of issuance costs | — | — | 22,043 | 682,713 | — | — | — | 704,756 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock reissued | — | — | — | — | 1,014,746 | — | (137,176 | ) | 877,570 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of exchanged equity awards and warrants attributed to purchase price | — | — | — | 43,362 | — | — | — | 43,362 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared on common stock - $0.30 per share | — | — | — | — | — | — | (36,696 | ) | (36,696 | ) | — | — | — | — | — | — | (47,235 | ) | (47,235 | ) | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid on Series C Preferred Stock | — | — | — | — | — | — | (5,119 | ) | (5,119 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | — | — | — | — | (45,349 | ) | — | — | (45,349 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted share unit activity | — | — | 330 | (7,850 | ) | — | — | (290 | ) | (7,810 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | 143 | 2,361 | — | — | — | 2,504 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid on Series D Preferred Stock - $0.39 per share | — | — | — | — | — | — | (3,150 | ) | (3,150 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock including costs to repurchase | — | — | — | — | (320,167 | ) | — | — | (320,167 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted share unit vesting and taxes paid related to net share settlement | — | — | 235 | (8,647 | ) | — | — | — | (8,412 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options/warrants exercised, net | — | — | 351 | 6,029 | 269 | — | — | 6,649 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | 6,838 | — | — | — | 6,838 | — | — | — | 10,244 | — | — | — | 10,244 | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2017 | $ | — | $ | 125,980 | $ | 142,499 | $ | 3,029,754 | $ | (709,944 | ) | $ | (47,865 | ) | $ | 457,523 | $ | 2,997,947 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | — | $ | 195,140 | $ | 165,929 | $ | 3,794,262 | $ | (319,898 | ) | $ | (18,342 | ) | $ | 780,662 | $ | 4,597,753 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | — | $ | 125,980 | $ | 142,678 | $ | 3,043,129 | $ | (839,674 | ) | $ | (54,754 | ) | $ | 544,207 | $ | 2,961,566 | ||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect adjustment from adoption of ASU 2014-09 | — | — | — | — | — | — | (685 | ) | (685 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification from adoption of ASU 2018-02 | — | — | — | — | — | (7,588 | ) | 7,588 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect adjustment from adoption of ASU 2016-01 | — | — | — | — | — | 117 | (117 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 214,348 | 214,348 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes | — | — | — | — | — | (63,495 | ) | — | (63,495 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared on common stock - $0.50 per share | — | — | — | — | — | — | (59,185 | ) | (59,185 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid on Series C Preferred Stock | — | — | — | — | — | — | (5,119 | ) | (5,119 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Series D Preferred Stock, net of issuance costs | 195,138 | — | — | — | — | — | — | 195,138 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | — | — | — | — | (76,810 | ) | — | — | (76,810 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted share unit activity | — | — | 289 | (8,220 | ) | — | — | (349 | ) | (8,280 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | 111 | 1,785 | — | — | — | 1,896 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | 8,320 | — | — | — | 8,320 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2018 | $ | 195,138 | $ | 125,980 | $ | 143,078 | $ | 3,045,014 | $ | (916,484 | ) | $ | (125,720 | ) | $ | 700,688 | $ | 3,167,694 | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||
(in thousands) | 2019 (1) | 2018 | |||||
Operating Activities | |||||||
Net income | $ | 120,186 | $ | 103,166 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for loan losses | 23,569 | 12,776 | |||||
Depreciation, amortization, and accretion, net | 7,000 | 14,823 | |||||
Deferred income tax expense | 6,915 | 2,599 | |||||
Originations of mortgage loans held for sale | (120,207 | ) | (128,618 | ) | |||
Proceeds from sales of mortgage loans held for sale | 104,552 | 130,805 | |||||
Gain on sales of mortgage loans held for sale, net | (3,534 | ) | (3,445 | ) | |||
Decrease (increase) in other assets | 21,634 | (45,764 | ) | ||||
Decrease in other liabilities | (27,776 | ) | (8,466 | ) | |||
Investment securities gains, net | (75 | ) | — | ||||
Share-based compensation expense | 10,244 | 3,955 | |||||
Net cash provided by operating activities | 142,508 | 81,831 | |||||
Investing Activities | |||||||
Net cash received in business combination, net of cash paid | 201,100 | — | |||||
Proceeds from maturities and principal collections of investment securities available for sale | 197,726 | 139,929 | |||||
Proceeds from sales of investment securities available for sale | 1,188,239 | — | |||||
Purchases of investment securities available for sale | (1,800,346 | ) | (211,085 | ) | |||
Proceeds from sales of loans | 13,654 | 10,885 | |||||
Proceeds from sales of other real estate and other assets | 6,273 | 2,090 | |||||
Net increase in loans excluding loans acquired in business combination | (423,514 | ) | (109,180 | ) | |||
Net (purchases) redemptions of Federal Home Loan Bank stock | (24,239 | ) | (6,375 | ) | |||
Net redemptions (purchases) of Federal Reserve Bank stock | 1,285 | (20 | ) | ||||
Purchases of bank-owned life insurance policies, net of settlements | 656 | 1,523 | |||||
Net increase in premises and equipment | (9,209 | ) | (9,212 | ) | |||
Net cash used in investing activities | (648,375 | ) | (181,445 | ) | |||
Financing Activities | |||||||
Net increase in deposits | 434,677 | 105,502 | |||||
Net increase in federal funds purchased and securities sold under repurchase agreements | 47,552 | 24,341 | |||||
Net change in other short-term borrowings | 203,000 | (100,000 | ) | ||||
Repayments and redemption of long-term debt | — | (2,030,030 | ) | ||||
Proceeds from issuance of long-term debt, net | 297,045 | 2,280,000 | |||||
Dividends paid to common shareholders | (28,966 | ) | (17,835 | ) | |||
Dividends paid to preferred shareholders | (3,150 | ) | (2,559 | ) | |||
Stock options and warrants exercised | 6,649 | 1,240 | |||||
Repurchase of common stock | (320,167 | ) | (26,733 | ) | |||
Taxes paid related to net share settlement of equity awards | (8,412 | ) | (8,228 | ) | |||
Net cash provided by financing activities | 628,228 | 225,698 | |||||
Increase in cash and cash equivalents including restricted cash | 122,361 | 126,084 | |||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | 1,143,564 | 932,933 | |||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | $ | 1,265,925 | $ | 1,059,017 | |||
Supplemental Disclosures: | |||||||
Income taxes paid (refunded) | $ | 1,050 | $ | 183 | |||
Interest paid | 95,630 | 33,431 | |||||
Non-cash Activities | |||||||
Common stock issued, treasury stock reissued, equity awards/warrants exchanged to acquire FCB | 1,625,688 | — | |||||
Loans foreclosed and transferred to other real estate | 1,419 | 3,407 | |||||
Loans transferred to/(from) other loans held for sale at fair value | 12,237 | 5,233 | |||||
Subtopic 825-10 equity investment securities available for sale transferred to other assets | — | 3,162 | |||||
Dividends declared on common stock during the period but paid after period-end | 47,235 | 29,675 | |||||
Six Months Ended June 30, | |||||||
(in thousands) | 2018 | 2017 | |||||
Operating Activities | |||||||
Net income | $ | 214,348 | $ | 147,861 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for loan losses | 24,566 | 18,934 | |||||
Depreciation, amortization, and accretion, net | 28,661 | 29,334 | |||||
Deferred income tax expense | 5,222 | 70,484 | |||||
Originations of mortgage loans held for sale | (286,070 | ) | (325,094 | ) | |||
Proceeds from sales of mortgage loans held for sale | 287,175 | 323,861 | |||||
Gain on sales of mortgage loans held for sale, net | (6,198 | ) | (7,049 | ) | |||
Increase in other assets | (52,294 | ) | (4,124 | ) | |||
Increase (decrease) in other liabilities | 8,292 | (9,667 | ) | ||||
Investment securities losses (gains), net | 1,296 | (7,667 | ) | ||||
Share-based compensation expense | 8,320 | 6,838 | |||||
Net cash provided by operating activities | 233,318 | 243,711 | |||||
Investing Activities | |||||||
Proceeds from maturities and principal collections of investment securities available for sale | 294,152 | 313,902 | |||||
Proceeds from sales of investment securities available for sale | 35,066 | 338,381 | |||||
Purchases of investment securities available for sale | (367,458 | ) | (748,754 | ) | |||
Proceeds from sales of loans | 13,954 | 10,747 | |||||
Proceeds from sales of other real estate | 4,631 | 5,492 | |||||
Net increase in loans | (382,086 | ) | (612,309 | ) | |||
Purchases of bank-owned life insurance policies, net of settlements | 1,783 | (73,110 | ) | ||||
Net increase in premises and equipment | (26,780 | ) | (15,386 | ) | |||
Proceeds from sales of other assets held for sale | 2,106 | 3,158 | |||||
Net cash used in investing activities | (424,632 | ) | (777,879 | ) | |||
Financing Activities | |||||||
Net (decrease) increase in demand and savings deposits | (39,614 | ) | 367,450 | ||||
Net increase in certificates of deposit | 334,130 | 202,927 | |||||
Net increase (decrease) in federal funds purchased and securities sold under repurchase agreements | 46,390 | (9,320 | ) | ||||
Repayments and redemption of long-term debt | (2,330,052 | ) | (1,128,591 | ) | |||
Proceeds from issuance of long-term debt | 2,280,000 | 1,075,000 | |||||
Dividends paid to common shareholders | (47,510 | ) | (18,349 | ) | |||
Dividends paid to preferred shareholders | (5,119 | ) | (5,119 | ) | |||
Proceeds from issuance of Series D Preferred Stock | 195,138 | — | |||||
Stock options exercised | 1,896 | 2,504 | |||||
Repurchase of common stock | (76,810 | ) | (45,349 | ) | |||
Taxes paid related to net share settlement of equity awards | (8,280 | ) | (7,810 | ) | |||
Net cash provided by financing activities | 350,169 | 433,343 | |||||
Increase/(decrease) in cash and cash equivalents including restricted cash | 158,855 | (100,825 | ) | ||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period(1) | 932,933 | 999,045 | |||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period(1) | $ | 1,091,788 | $ | 898,220 | |||
Supplemental Cash Flow Information | |||||||
Cash paid during the period for: | |||||||
Income tax payments, net | $ | 38,619 | $ | 8,768 | |||
Interest paid | 80,884 | 67,007 | |||||
Non-cash Activities | |||||||
Premises and equipment transferred to other assets held for sale | 785 | — | |||||
Other assets held for sale transferred to premises and equipment | — | 4,450 | |||||
Loans foreclosed and transferred to other real estate | 7,561 | 5,516 | |||||
Loans transferred to other loans held for sale at fair value | 5,233 | 10,584 | |||||
ASU 2014-09 cumulative effect adjustment to opening balance of retained earnings | (685 | ) | — | ||||
Equity investment securities available for sale transferred to other assets at fair value | 3,162 | — | |||||
Dividends declared on common stock during the period but paid after period-end | 29,510 | 18,349 | |||||
(in thousands) | ||||||
Consideration paid: | ||||||
Synovus common stock issued and reissued from treasury(1) | $ | 1,582,743 | ||||
Cash payments to FCB stockholders attributed to purchase price(2) | 173 | |||||
Fair value of exchanged employee and director equity awards and FCB warrants attributed to purchase price(1) | 43,362 | |||||
Total purchase price | $ | 1,626,278 | ||||
Statement of Net Assets Acquired at Fair Value (Preliminary): | ||||||
Assets | ||||||
Cash and cash equivalents | $ | 201,689 | ||||
Investment securities available for sale | 2,301,001 | |||||
Loans | 9,287,813 | |||||
Cash surrender value of bank-owned life insurance | 216,848 | |||||
Premises and equipment | 44,890 | |||||
Core deposit intangible | 68,200 | |||||
Other assets | 266,607 | |||||
Total Assets | $ | 12,387,048 | ||||
Liabilities | ||||||
Deposits | $ | 10,931,185 | ||||
Federal funds purchased and securities sold under repurchase agreements | 29,139 | |||||
Long-term debt | 153,236 | |||||
Other liabilities | 74,895 | |||||
Total Liabilities | $ | 11,188,455 | ||||
Fair value of net identifiable assets acquired | 1,198,593 | |||||
Preliminary goodwill | $ | 427,685 | ||||
(in thousands) | Actual from Acquisition Date (January 1, 2019) through March 31, 2019(1) | Pro Forma for Three Months Ended March 31, 2018 | |||||
Net interest income | $ | 397,175 | $ | 374,982 | |||
Non-interest income | 79,378 | 74,269 | |||||
Net income available to common shareholders | 117,036 | 152,362 | |||||
(in thousands) | Three Months Ended March 31, 2019 | ||
Employee compensation, severance, and other employee benefit costs | $ | 32,988 | |
Professional services | 15,200 | ||
All other expense(1) | 1,550 | ||
Total merger-related expense | $ | 49,738 | |
(1) Primarily relates to fees associated with lease exit accruals, asset impairments related to the integration, and contract termination charges. |
March 31, 2019 | ||||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
U.S. Treasury securities | $ | 19,584 | $ | — | $ | — | $ | 19,584 | ||||||||
U.S. Government agency securities | 83,982 | 1,299 | — | 85,281 | ||||||||||||
Mortgage-backed securities issued by U.S. Government agencies | 93,455 | 216 | (1,734 | ) | 91,937 | |||||||||||
Mortgage-backed securities issued by U.S. Government sponsored enterprises | 4,612,253 | 42,710 | (30,649 | ) | 4,624,314 | |||||||||||
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | 1,001,493 | 3,513 | (17,236 | ) | 987,770 | |||||||||||
Commercial mortgage-backed securities issued by U.S. Government sponsored enterprises | 336,321 | 5,672 | (168 | ) | 341,825 | |||||||||||
Asset-backed securities | 506,125 | 4,722 | (542 | ) | 510,305 | |||||||||||
State and municipal securities | 2,108 | 1 | (3 | ) | 2,106 | |||||||||||
Corporate debt securities | 144,442 | 811 | (184 | ) | 145,069 | |||||||||||
Total investment securities available for sale | $ | 6,799,763 | $ | 58,944 | $ | (50,516 | ) | $ | 6,808,191 | |||||||
December 31, 2018 | ||||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
U.S. Treasury securities | $ | 123,436 | $ | — | $ | (1,359 | ) | $ | 122,077 | |||||||
U.S. Government agency securities | 38,021 | 361 | — | 38,382 | ||||||||||||
Mortgage-backed securities issued by U.S. Government agencies | 100,060 | 172 | (3,027 | ) | 97,205 | |||||||||||
Mortgage-backed securities issued by U.S. Government sponsored enterprises | 2,460,498 | 1,981 | (63,829 | ) | 2,398,650 | |||||||||||
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | 1,215,406 | 2,997 | (29,885 | ) | 1,188,518 | |||||||||||
Commercial mortgage-backed securities issued by U.S. Government sponsored enterprises | 131,492 | 613 | (2,240 | ) | 129,865 | |||||||||||
Corporate debt securities | 17,000 | 150 | (215 | ) | 16,935 | |||||||||||
Total investment securities available for sale | $ | 4,085,913 | $ | 6,274 | $ | (100,555 | ) | $ | 3,991,632 | |||||||
June 30, 2018 | ||||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
U.S. Treasury securities | $ | 122,800 | $ | — | $ | (2,167 | ) | $ | 120,633 | |||||||
U.S. Government agency securities | 40,753 | 181 | — | 40,934 | ||||||||||||
Mortgage-backed securities issued by U.S. Government agencies | 111,406 | 107 | (3,569 | ) | 107,944 | |||||||||||
Mortgage-backed securities issued by U.S. Government sponsored enterprises | 2,614,668 | 59 | (87,882 | ) | 2,526,845 | |||||||||||
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | 1,159,859 | 139 | (43,550 | ) | 1,116,448 | |||||||||||
State and municipal securities | 115 | — | — | 115 | ||||||||||||
Corporate debt and other debt securities | 17,000 | 186 | (143 | ) | 17,043 | |||||||||||
Total investment securities available for sale | $ | 4,066,601 | $ | 672 | $ | (137,311 | ) | $ | 3,929,962 | |||||||
December 31, 2017 | ||||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
U.S. Treasury securities | $ | 83,608 | $ | — | $ | (934 | ) | $ | 82,674 | |||||||
U.S. Government agency securities | 10,771 | 91 | — | 10,862 | ||||||||||||
Mortgage-backed securities issued by U.S. Government agencies | 121,283 | 519 | (1,362 | ) | 120,440 | |||||||||||
Mortgage-backed securities issued by U.S. Government sponsored enterprises | 2,666,818 | 5,059 | (31,354 | ) | 2,640,523 | |||||||||||
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | 1,135,259 | 144 | (23,404 | ) | 1,111,999 | |||||||||||
State and municipal securities | 180 | — | — | 180 | ||||||||||||
Corporate debt and other securities | 20,320 | 294 | (223 | ) | 20,391 | |||||||||||
Total investment securities available for sale | $ | 4,038,239 | $ | 6,107 | $ | (57,277 | ) | $ | 3,987,069 | |||||||
March 31, 2019 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
(in thousands) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||
Mortgage-backed securities issued by U.S. Government agencies | $ | 638 | $ | (3 | ) | $ | 78,141 | $ | (1,731 | ) | $ | 78,779 | $ | (1,734 | ) | ||||||||
Mortgage-backed securities issued by U.S. Government sponsored enterprises | — | — | 1,729,242 | (30,649 | ) | 1,729,242 | (30,649 | ) | |||||||||||||||
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | 512 | (1 | ) | 851,982 | (17,235 | ) | 852,494 | (17,236 | ) | ||||||||||||||
Commercial mortgage-backed securities issued by U.S. Government sponsored enterprises | — | — | 51,236 | (168 | ) | 51,236 | (168 | ) | |||||||||||||||
Asset-backed securities | 103,969 | (542 | ) | — | — | 103,969 | (542 | ) | |||||||||||||||
State and municipal securities | 1,082 | (3 | ) | — | — | 1,082 | (3 | ) | |||||||||||||||
Corporate debt securities | 9,344 | (165 | ) | 1,981 | (19 | ) | 11,325 | (184 | ) | ||||||||||||||
Total | $ | 115,545 | $ | (714 | ) | $ | 2,712,582 | $ | (49,802 | ) | $ | 2,828,127 | $ | (50,516 | ) | ||||||||
December 31, 2018 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
(in thousands) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||
U.S. Treasury securities | $ | 39,031 | $ | (118 | ) | $ | 63,570 | $ | (1,241 | ) | $ | 102,601 | $ | (1,359 | ) | ||||||||
Mortgage-backed securities issued by U.S. Government agencies | 2,059 | (2 | ) | 79,736 | (3,025 | ) | 81,795 | (3,027 | ) | ||||||||||||||
Mortgage-backed securities issued by U.S. Government sponsored enterprises | 130,432 | (700 | ) | 2,105,358 | (63,129 | ) | 2,235,790 | (63,829 | ) | ||||||||||||||
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | — | — | 964,732 | (29,885 | ) | 964,732 | (29,885 | ) | |||||||||||||||
Commercial mortgage-backed securities issued by U.S. Government sponsored enterprises | 58,998 | (1,298 | ) | 44,220 | (942 | ) | 103,218 | (2,240 | ) | ||||||||||||||
Corporate debt securities | — | — | 1,785 | (215 | ) | 1,785 | (215 | ) | |||||||||||||||
Total | $ | 230,520 | $ | (2,118 | ) | $ | 3,259,401 | $ | (98,437 | ) | $ | 3,489,921 | $ | (100,555 | ) | ||||||||
June 30, 2018 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
(in thousands) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||
U.S. Treasury securities | $ | 72,386 | $ | 1,378 | $ | 29,255 | $ | 789 | $ | 101,641 | $ | 2,167 | |||||||||||
Mortgage-backed securities issued by U.S. Government agencies | 23,240 | 632 | 67,765 | 2,937 | 91,005 | 3,569 | |||||||||||||||||
Mortgage-backed securities issued by U.S. Government sponsored enterprises | 1,703,526 | 49,197 | 812,767 | 38,685 | 2,516,293 | 87,882 | |||||||||||||||||
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | 609,505 | 21,190 | 412,961 | 22,360 | 1,022,466 | 43,550 | |||||||||||||||||
Corporate debt and other debt securities | — | — | 1,857 | 143 | 1,857 | 143 | |||||||||||||||||
Total | $ | 2,408,657 | $ | 72,397 | $ | 1,324,605 | $ | 64,914 | $ | 3,733,262 | $ | 137,311 | |||||||||||
December 31, 2017 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
(in thousands) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||
U.S. Treasury securities | $ | 34,243 | $ | 443 | $ | 29,562 | $ | 491 | $ | 63,805 | $ | 934 | |||||||||||
Mortgage-backed securities issued by U.S. Government agencies | 36,810 | 357 | 55,740 | 1,005 | 92,550 | 1,362 | |||||||||||||||||
Mortgage-backed securities issued by U.S. Government sponsored enterprises | 1,271,012 | 10,263 | 929,223 | 21,091 | 2,200,235 | 31,354 | |||||||||||||||||
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | 653,781 | 9,497 | 426,237 | 13,907 | 1,080,018 | 23,404 | |||||||||||||||||
Corporate debt and other securities | — | — | 5,097 | 223 | 5,097 | 223 | |||||||||||||||||
Total | $ | 1,995,846 | $ | 20,560 | $ | 1,445,859 | $ | 36,717 | $ | 3,441,705 | $ | 57,277 | |||||||||||
Distribution of Maturities at March 31, 2019 | |||||||||||||||||||
(in thousands) | Within One Year | 1 to 5 Years | 5 to 10 Years | More Than 10 Years | Total | ||||||||||||||
Amortized Cost | |||||||||||||||||||
U.S. Treasury securities | $ | 19,584 | $ | — | $ | — | $ | — | $ | 19,584 | |||||||||
U.S. Government agency securities | 791 | 2,100 | 81,091 | — | 83,982 | ||||||||||||||
Mortgage-backed securities issued by U.S. Government agencies | — | — | 17,976 | 75,479 | 93,455 | ||||||||||||||
Mortgage-backed securities issued by U.S. Government sponsored enterprises | — | 48,381 | 462,977 | 4,100,895 | 4,612,253 | ||||||||||||||
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | — | — | 25,958 | 975,535 | 1,001,493 | ||||||||||||||
Commercial mortgage-backed securities issued by U.S. Government sponsored enterprises | — | 22,765 | 217,918 | 95,638 | 336,321 | ||||||||||||||
Asset-backed securities | — | 4,495 | 328,637 | 172,993 | 506,125 | ||||||||||||||
State and municipal securities | — | — | 1,085 | 1,023 | 2,108 | ||||||||||||||
Corporate debt securities | — | 109,290 | 33,152 | 2,000 | 144,442 | ||||||||||||||
Total amortized cost | $ | 20,375 | $ | 187,031 | $ | 1,168,794 | $ | 5,423,563 | $ | 6,799,763 | |||||||||
Fair Value | |||||||||||||||||||
U.S. Treasury securities | $ | 19,584 | $ | — | $ | — | $ | — | $ | 19,584 | |||||||||
U.S. Government agency securities | 800 | 2,124 | 82,357 | — | 85,281 | ||||||||||||||
Mortgage-backed securities issued by U.S. Government agencies | — | — | 17,700 | 74,237 | 91,937 | ||||||||||||||
Mortgage-backed securities issued by U.S. Government sponsored enterprises | — | 48,194 | 459,948 | 4,116,172 | 4,624,314 | ||||||||||||||
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | — | — | 25,495 | 962,275 | 987,770 | ||||||||||||||
Commercial mortgage-backed securities issued by U.S. Government sponsored enterprises | — | 22,878 | 221,506 | 97,441 | 341,825 | ||||||||||||||
Asset-backed securities | — | 4,530 | 332,485 | 173,290 | 510,305 | ||||||||||||||
State and municipal securities | — | — | 1,082 | 1,024 | 2,106 | ||||||||||||||
Corporate debt securities | — | 109,353 | 33,735 | 1,981 | 145,069 | ||||||||||||||
Total fair value | $ | 20,384 | $ | 187,079 | $ | 1,174,308 | $ | 5,426,420 | $ | 6,808,191 | |||||||||
Distribution of Maturities at June 30, 2018 | |||||||||||||||||||
(in thousands) | Within One Year | 1 to 5 Years | 5 to 10 Years | More Than 10 Years | Total | ||||||||||||||
Amortized Cost | |||||||||||||||||||
U.S. Treasury securities | $ | 18,993 | $ | 103,807 | $ | — | $ | — | $ | 122,800 | |||||||||
U.S. Government agency securities | 2,330 | 6,437 | 31,986 | — | 40,753 | ||||||||||||||
Mortgage-backed securities issued by U.S. Government agencies | — | — | 27,725 | 83,681 | 111,406 | ||||||||||||||
Mortgage-backed securities issued by U.S. Government sponsored enterprises | 1 | 1,471 | 615,334 | 1,997,862 | 2,614,668 | ||||||||||||||
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | — | — | 17,355 | 1,142,504 | 1,159,859 | ||||||||||||||
State and municipal securities | 115 | — | — | — | 115 | ||||||||||||||
Corporate debt and other debt securities | — | — | 15,000 | 2,000 | 17,000 | ||||||||||||||
Total amortized cost | $ | 21,439 | $ | 111,715 | $ | 707,400 | $ | 3,226,047 | $ | 4,066,601 | |||||||||
Fair Value | |||||||||||||||||||
U.S. Treasury securities | $ | 18,993 | $ | 101,640 | $ | — | $ | — | $ | 120,633 | |||||||||
U.S. Government agency securities | 2,337 | 6,455 | 32,142 | — | 40,934 | ||||||||||||||
Mortgage-backed securities issued by U.S. Government agencies | — | — | 27,266 | 80,678 | 107,944 | ||||||||||||||
Mortgage-backed securities issued by U.S. Government sponsored enterprises | 1 | 1,520 | 596,366 | 1,928,958 | 2,526,845 | ||||||||||||||
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | — | — | 16,855 | 1,099,593 | 1,116,448 | ||||||||||||||
State and municipal securities | 115 | — | — | — | 115 | ||||||||||||||
Corporate debt and other debt securities | — | — | 15,186 | 1,857 | 17,043 | ||||||||||||||
Total fair value | $ | 21,446 | $ | 109,615 | $ | 687,815 | $ | 3,111,086 | $ | 3,929,962 | |||||||||
Three Months Ended March 31, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
Proceeds from sales of investment securities available for sale | $ | 1,188,239 | $ | — | ||||
Gross realized gains on sales | 9,130 | — | ||||||
Gross realized losses on sales | (9,055 | ) | — | |||||
Investment securities gains, net | $ | 75 | $ | — | ||||
Six Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Proceeds from sales of investment securities available for sale | $ | 35,066 | $ | 338,381 | $ | 35,066 | $ | 55,752 | ||||||||
Gross realized gains on sales | — | 7,942 | — | 239 | ||||||||||||
Gross realized losses on sales | (1,296 | ) | (275 | ) | (1,296 | ) | (240 | ) | ||||||||
Investment securities (losses) gains, net | $ | (1,296 | ) | $ | 7,667 | $ | (1,296 | ) | $ | (1 | ) | |||||
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Severance charges | $ | — | $ | 6,453 | $ | — | $ | — | |||||||
Other charges, net | (212 | ) | 71 | 103 | 13 | ||||||||||
Total restructuring charges, net | $ | (212 | ) | $ | 6,524 | $ | 103 | $ | 13 | ||||||
(in thousands) | Severance Charges | Lease Termination Charges | Total | ||||||||
Balance at December 31, 2017 | $ | 336 | $ | 3,276 | $ | 3,612 | |||||
Accruals for lease terminations | — | (377 | ) | (377 | ) | ||||||
Payments | (336 | ) | (1,031 | ) | (1,367 | ) | |||||
Balance at June 30, 2018 | $ | — | $ | 1,868 | $ | 1,868 | |||||
Balance at April 1, 2018 | — | 2,506 | 2,506 | ||||||||
Payments | — | (638 | ) | (638 | ) | ||||||
Balance at June 30, 2018 | $ | — | $ | 1,868 | $ | 1,868 | |||||
(in thousands) | Severance Charges | Lease Termination Charges | Total | ||||||||
Balance at December 31, 2016 | $ | 81 | $ | 3,968 | $ | 4,049 | |||||
Accrual for voluntary and involuntary termination benefits | 6,453 | — | 6,453 | ||||||||
Payments | (2,803 | ) | (438 | ) | (3,241 | ) | |||||
Balance at June 30, 2017 | $ | 3,731 | $ | 3,530 | $ | 7,261 | |||||
Balance at April 1, 2017 | 6,315 | 3,689 | 10,004 | ||||||||
Payments | (2,584 | ) | (159 | ) | (2,743 | ) | |||||
Balance at June 30, 2017 | $ | 3,731 | $ | 3,530 | $ | 7,261 | |||||
Current, Accruing Past Due, and Non-accrual Originated Loans | ||||||||||||||||||||||||
March 31, 2019 | ||||||||||||||||||||||||
(in thousands) | Current | Accruing 30-89 Days Past Due | Accruing 90 Days or Greater Past Due | Total Accruing Past Due | Non-accrual | Total | ||||||||||||||||||
Commercial, financial and agricultural | $ | 7,563,911 | $ | 17,395 | $ | 641 | $ | 18,036 | $ | 79,305 | $ | 7,661,252 | ||||||||||||
Owner-occupied | 5,356,411 | 7,699 | 329 | 8,028 | 11,239 | 5,375,678 | ||||||||||||||||||
Total commercial and industrial | 12,920,322 | 25,094 | 970 | 26,064 | 90,544 | 13,036,930 | ||||||||||||||||||
Investment properties | 5,712,709 | 7,510 | — | 7,510 | 726 | 5,720,945 | ||||||||||||||||||
1-4 family properties | 654,046 | 2,031 | — | 2,031 | 1,722 | 657,799 | ||||||||||||||||||
Land and development | 336,537 | 3,749 | 251 | 4,000 | 2,650 | 343,187 | ||||||||||||||||||
Total commercial real estate | 6,703,292 | 13,290 | 251 | 13,541 | 5,098 | 6,721,931 | ||||||||||||||||||
Consumer mortgages | 3,031,630 | 5,721 | — | 5,721 | 6,856 | 3,044,207 | ||||||||||||||||||
Home equity lines | 1,521,292 | 5,333 | 345 | 5,678 | 13,756 | 1,540,726 | ||||||||||||||||||
Credit cards | 248,066 | 2,307 | 2,389 | 4,696 | — | 252,762 | ||||||||||||||||||
Other consumer loans | 2,002,539 | 16,374 | 531 | 16,905 | 4,249 | 2,023,693 | ||||||||||||||||||
Total consumer | 6,803,527 | 29,735 | 3,265 | 33,000 | 24,861 | 6,861,388 | ||||||||||||||||||
Total loans | $ | 26,427,141 | $ | 68,119 | $ | 4,486 | $ | 72,605 | $ | 120,503 | $ | 26,620,249 | (1) | |||||||||||
Current, Accruing Past Due, and Non-accrual Acquired Loans | ||||||||||||||||||||||||||||||||
March 31, 2019 | ||||||||||||||||||||||||||||||||
(in thousands) | Current | Accruing 30-89 Days Past Due(2) | Accruing 90 Days or Greater Past Due(2) | Total Accruing Past Due(2) | Non-accrual(2) | ASC 310-30 Loans | Discount/Premium | Total | ||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 702,511 | $ | — | $ | — | $ | — | $ | — | $ | 1,200,453 | $ | (16,400 | ) | $ | 1,886,564 | |||||||||||||||
Owner-occupied | 76,452 | — | — | — | — | 1,115,983 | (7,432 | ) | 1,185,003 | |||||||||||||||||||||||
Total commercial and industrial | 778,963 | — | — | — | — | 2,316,436 | (23,832 | ) | 3,071,567 | |||||||||||||||||||||||
Investment properties | 991,352 | — | — | — | — | 2,228,455 | (23,972 | ) | 3,195,835 | |||||||||||||||||||||||
1-4 family properties | 44,363 | — | — | — | 180 | 63,960 | (1,301 | ) | 107,202 | |||||||||||||||||||||||
Land and development | 127,204 | — | — | — | — | 113,053 | (2,853 | ) | 237,404 | |||||||||||||||||||||||
Total commercial real estate | 1,162,919 | — | — | — | 180 | 2,405,468 | (28,126 | ) | 3,540,441 | |||||||||||||||||||||||
Consumer mortgages | 127,577 | — | — | — | — | 2,319,288 | (100,251 | ) | 2,346,614 | |||||||||||||||||||||||
Home equity lines | 68,395 | 75 | — | 75 | 7 | 5,377 | (8,353 | ) | 65,501 | |||||||||||||||||||||||
Other consumer loans | 358 | — | — | — | — | 14,923 | (1,497 | ) | 13,784 | |||||||||||||||||||||||
Total consumer | 196,330 | 75 | — | 75 | 7 | 2,339,588 | (110,101 | ) | 2,425,899 | |||||||||||||||||||||||
Total loans | $ | 2,138,212 | $ | 75 | $ | — | $ | 75 | $ | 187 | $ | 7,061,492 | $ | (162,059 | ) | $ | 9,037,907 | (3) | ||||||||||||||
Current, Accruing Past Due, and Non-accrual Loans | Current, Accruing Past Due, and Non-accrual Loans | Current, Accruing Past Due, and Non-accrual Loans | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2018 | December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Current | Accruing 30-89 Days Past Due | Accruing 90 Days or Greater Past Due | Total Accruing Past Due | Non-accrual | Total | Current | Accruing 30-89 Days Past Due | Accruing 90 Days or Greater Past Due | Total Accruing Past Due | Non-accrual | Total | |||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 7,170,877 | $ | 18,425 | $ | 547 | $ | 18,972 | $ | 81,231 | $ | 7,271,080 | |||||||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | 7,372,301 | $ | 7,988 | $ | 114 | $ | 8,102 | $ | 69,295 | $ | 7,449,698 | |||||||||||||||||||||||||||||||||||||
Owner-occupied | 4,994,038 | 4,180 | 98 | 4,278 | 6,076 | 5,004,392 | 5,317,023 | 5,433 | 81 | 5,514 | 8,971 | 5,331,508 | |||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 12,164,915 | 22,605 | 645 | 23,250 | 87,307 | 12,275,472 | 12,689,324 | 13,421 | 195 | 13,616 | 78,266 | 12,781,206 | |||||||||||||||||||||||||||||||||||||
Investment properties | 5,505,409 | 1,838 | 611 | 2,449 | 1,738 | 5,509,596 | 5,557,224 | 1,312 | 34 | 1,346 | 2,381 | 5,560,951 | |||||||||||||||||||||||||||||||||||||
1-4 family properties | 715,154 | 2,309 | — | 2,309 | 3,247 | 720,710 | 674,648 | 2,745 | 96 | 2,841 | 2,381 | 679,870 | |||||||||||||||||||||||||||||||||||||
Land and development | 407,639 | 1,602 | — | 1,602 | 4,624 | 413,865 | 319,978 | 739 | — | 739 | 2,953 | 323,670 | |||||||||||||||||||||||||||||||||||||
Total commercial real estate | 6,628,202 | 5,749 | 611 | 6,360 | 9,609 | 6,644,171 | 6,551,850 | 4,796 | 130 | 4,926 | 7,715 | 6,564,491 | |||||||||||||||||||||||||||||||||||||
Consumer mortgages | 2,922,136 | 7,150 | — | 7,150 | 4,949 | 2,934,235 | |||||||||||||||||||||||||||||||||||||||||||
Home equity lines | 1,430,778 | 8,450 | 362 | 8,812 | 14,265 | 1,453,855 | 1,496,562 | 7,092 | 28 | 7,120 | 12,114 | 1,515,796 | |||||||||||||||||||||||||||||||||||||
Consumer mortgages | 2,741,064 | 4,805 | 244 | 5,049 | 4,822 | 2,750,935 | |||||||||||||||||||||||||||||||||||||||||||
Credit cards | 235,406 | 1,793 | 1,225 | 3,018 | — | 238,424 | 252,832 | 3,066 | 2,347 | 5,413 | — | 258,245 | |||||||||||||||||||||||||||||||||||||
Other consumer loans | 1,783,466 | 8,990 | 135 | 9,125 | 1,325 | 1,793,916 | 1,894,352 | 17,604 | 1,098 | 18,702 | 3,689 | 1,916,743 | |||||||||||||||||||||||||||||||||||||
Total consumer | 6,190,714 | 24,038 | 1,966 | 26,004 | 20,412 | 6,237,130 | 6,565,882 | 34,912 | 3,473 | 38,385 | 20,752 | 6,625,019 | |||||||||||||||||||||||||||||||||||||
Total loans | $ | 24,983,831 | $ | 52,392 | $ | 3,222 | $ | 55,614 | $ | 117,328 | $ | 25,156,773 | (1 | ) | $ | 25,807,056 | $ | 53,129 | $ | 3,798 | $ | 56,927 | $ | 106,733 | $ | 25,970,716 | (4) | ||||||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Current | Accruing 30-89 Days Past Due | Accruing 90 Days or Greater Past Due | Total Accruing Past Due | Non-accrual | Total | |||||||||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 7,097,127 | $ | 11,214 | $ | 1,016 | $ | 12,230 | $ | 70,130 | $ | 7,179,487 | |||||||||||||||||||||||||||||||||||||
Owner-occupied | 4,830,150 | 6,880 | 479 | 7,359 | 6,654 | 4,844,163 | |||||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 11,927,277 | 18,094 | 1,495 | 19,589 | 76,784 | 12,023,650 | |||||||||||||||||||||||||||||||||||||||||||
Investment properties | 5,663,665 | 2,506 | 90 | 2,596 | 3,804 | 5,670,065 | |||||||||||||||||||||||||||||||||||||||||||
1-4 family properties | 775,023 | 3,545 | 202 | 3,747 | 2,849 | 781,619 | |||||||||||||||||||||||||||||||||||||||||||
Land and development | 476,131 | 1,609 | 67 | 1,676 | 5,797 | 483,604 | |||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | 6,914,819 | 7,660 | 359 | 8,019 | 12,450 | 6,935,288 | |||||||||||||||||||||||||||||||||||||||||||
Home equity lines | 1,490,808 | 5,629 | 335 | 5,964 | 17,455 | 1,514,227 | |||||||||||||||||||||||||||||||||||||||||||
Consumer mortgages | 2,622,061 | 3,971 | 268 | 4,239 | 7,203 | 2,633,503 | |||||||||||||||||||||||||||||||||||||||||||
Credit cards | 229,015 | 1,930 | 1,731 | 3,661 | — | 232,676 | |||||||||||||||||||||||||||||||||||||||||||
Other consumer loans | 1,461,223 | 10,333 | 226 | 10,559 | 1,669 | 1,473,451 | |||||||||||||||||||||||||||||||||||||||||||
Total consumer | 5,803,107 | 21,863 | 2,560 | 24,423 | 26,327 | 5,853,857 | |||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | 24,645,203 | $ | 47,617 | $ | 4,414 | $ | 52,031 | $ | 115,561 | $ | 24,812,795 | (2 | ) | |||||||||||||||||||||||||||||||||||
(4) | Total before net deferred fees and costs of $24.1 million. |
Loan Portfolio Credit Exposure by Risk Grade | |||||||||||||||||||||||||||||||||||||||||||||||||
Originated Loan Portfolio Credit Exposure by Risk Grade | Originated Loan Portfolio Credit Exposure by Risk Grade | ||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2018 | March 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Pass | Special Mention | Substandard(1) | Doubtful(2) | Loss | Total | Pass | Special Mention | Substandard(1) | Doubtful(2) | Loss(3) | Total | |||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 6,996,081 | $ | 107,251 | $ | 164,581 | $ | 3,167 | $ | — | $ | 7,271,080 | $ | 7,409,047 | $ | 114,592 | $ | 134,607 | $ | 3,006 | $ | — | $ | 7,661,252 | |||||||||||||||||||||||||
Owner-occupied | 4,873,936 | 63,373 | 67,010 | 73 | — | 5,004,392 | 5,261,553 | 44,074 | 69,626 | 425 | — | 5,375,678 | |||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 11,870,017 | 170,624 | 231,591 | 3,240 | — | 12,275,472 | 12,670,600 | 158,666 | 204,233 | 3,431 | — | 13,036,930 | |||||||||||||||||||||||||||||||||||||
Investment properties | 5,422,727 | 51,279 | 35,590 | — | — | 5,509,596 | 5,674,855 | 21,418 | 24,672 | — | — | 5,720,945 | |||||||||||||||||||||||||||||||||||||
1-4 family properties | 698,532 | 9,245 | 12,933 | — | — | 720,710 | 644,165 | 6,080 | 7,554 | — | — | 657,799 | |||||||||||||||||||||||||||||||||||||
Land and development | 369,071 | 29,612 | 12,053 | 3,129 | — | 413,865 | 320,071 | 13,057 | 10,059 | — | — | 343,187 | |||||||||||||||||||||||||||||||||||||
Total commercial real estate | 6,490,330 | 90,136 | 60,576 | 3,129 | — | 6,644,171 | 6,639,091 | 40,555 | 42,285 | — | — | 6,721,931 | |||||||||||||||||||||||||||||||||||||
Consumer mortgages | 3,035,289 | — | 8,821 | 97 | — | 3,044,207 | |||||||||||||||||||||||||||||||||||||||||||
Home equity lines | 1,435,724 | — | 16,599 | 175 | 1,357 | (3) | 1,453,855 | 1,524,679 | — | 14,279 | 22 | 1,746 | 1,540,726 | ||||||||||||||||||||||||||||||||||||
Consumer mortgages | 2,743,245 | — | 7,588 | 102 | — | (3) | 2,750,935 | ||||||||||||||||||||||||||||||||||||||||||
Credit cards | 237,198 | — | 447 | — | 779 | (4) | 238,424 | 250,379 | — | 820 | — | 1,563 | (4) | 252,762 | |||||||||||||||||||||||||||||||||||
Other consumer loans | 1,792,568 | — | 1,087 | 257 | 4 | (3) | 1,793,916 | 2,019,300 | — | 4,393 | — | — | 2,023,693 | ||||||||||||||||||||||||||||||||||||
Total consumer | 6,208,735 | — | 25,721 | 534 | 2,140 | 6,237,130 | 6,829,647 | — | 28,313 | 119 | 3,309 | 6,861,388 | |||||||||||||||||||||||||||||||||||||
Total loans | $ | 24,569,082 | $ | 260,760 | $ | 317,888 | $ | 6,903 | $ | 2,140 | $ | 25,156,773 | (5 | ) | $ | 26,139,338 | $ | 199,221 | $ | 274,831 | $ | 3,550 | $ | 3,309 | $ | 26,620,249 | (5) | ||||||||||||||||||||||
Acquired Loan Portfolio Credit Exposure by Risk Grade | Acquired Loan Portfolio Credit Exposure by Risk Grade | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2017 | March 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Pass | Special Mention | Substandard(1) | Doubtful(2) | Loss | Total | Pass | Special Mention | Substandard(1) | Doubtful | Loss | Total | |||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $6,929,506 | $115,912 | $132,818 | $1,251 | $ | — | $7,179,487 | $ | 1,851,159 | $ | 18,283 | $ | 17,122 | $ | — | $ | — | $ | 1,886,564 | ||||||||||||||||||||||||||||||
Owner-occupied | 4,713,877 | 50,140 | 80,073 | 73 | — | 4,844,163 | 1,171,512 | 5,723 | 7,768 | — | — | 1,185,003 | |||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 11,643,383 | 166,052 | 212,891 | 1,324 | — | 12,023,650 | 3,022,671 | 24,006 | 24,890 | — | — | 3,071,567 | |||||||||||||||||||||||||||||||||||||
Investment properties | 5,586,792 | 64,628 | 18,645 | — | — | 5,670,065 | 3,130,586 | 21,853 | 43,396 | — | — | 3,195,835 | |||||||||||||||||||||||||||||||||||||
1-4 family properties | 745,299 | 19,419 | 16,901 | — | — | 781,619 | 104,555 | 164 | 2,483 | — | — | 107,202 | |||||||||||||||||||||||||||||||||||||
Land and development | 431,759 | 33,766 | 14,950 | 3,129 | — | 483,604 | 237,274 | 130 | — | — | — | 237,404 | |||||||||||||||||||||||||||||||||||||
Total commercial real estate | 6,763,850 | 117,813 | 50,496 | 3,129 | — | 6,935,288 | 3,472,415 | 22,147 | 45,879 | — | — | 3,540,441 | |||||||||||||||||||||||||||||||||||||
Consumer mortgages | 2,341,245 | — | 5,369 | — | — | 2,346,614 | |||||||||||||||||||||||||||||||||||||||||||
Home equity lines | 1,491,105 | — | 21,079 | 285 | 1,758 | (3) | 1,514,227 | 65,084 | — | 417 | — | — | 65,501 | ||||||||||||||||||||||||||||||||||||
Consumer mortgages | 2,622,499 | — | 10,607 | 291 | 106 | (3) | 2,633,503 | ||||||||||||||||||||||||||||||||||||||||||
Credit cards | 230,945 | — | 399 | — | 1,332 | (4) | 232,676 | ||||||||||||||||||||||||||||||||||||||||||
Other consumer loans | 1,470,944 | — | 2,168 | 329 | 10 | (3) | 1,473,451 | 13,784 | — | — | — | — | 13,784 | ||||||||||||||||||||||||||||||||||||
Total consumer | 5,815,493 | — | 34,253 | 905 | 3,206 | 5,853,857 | 2,420,113 | — | 5,786 | — | — | 2,425,899 | |||||||||||||||||||||||||||||||||||||
Total loans | $ | 24,222,726 | $ | 283,865 | $ | 297,640 | $ | 5,358 | $ | 3,206 | $ | 24,812,795 | (6 | ) | $ | 8,915,199 | $ | 46,153 | $ | 76,555 | $ | — | $ | — | $ | 9,037,907 | (6) | ||||||||||||||||||||||
Loan Portfolio Credit Exposure by Risk Grade | ||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
(in thousands) | Pass | Special Mention | Substandard(1) | Doubtful(2) | Loss(3) | Total | ||||||||||||||||||
Commercial, financial and agricultural | $ | 7,190,517 | $ | 118,188 | $ | 140,218 | $ | 775 | $ | — | $ | 7,449,698 | ||||||||||||
Owner-occupied | 5,212,473 | 55,038 | 63,572 | 425 | — | 5,331,508 | ||||||||||||||||||
Total commercial and industrial | 12,402,990 | 173,226 | 203,790 | 1,200 | — | 12,781,206 | ||||||||||||||||||
Investment properties | 5,497,344 | 40,516 | 23,091 | — | — | 5,560,951 | ||||||||||||||||||
1-4 family properties | 663,692 | 6,424 | 9,754 | — | — | 679,870 | ||||||||||||||||||
Land and development | 297,855 | 12,786 | 13,029 | — | — | 323,670 | ||||||||||||||||||
Total commercial real estate | 6,458,891 | 59,726 | 45,874 | — | — | 6,564,491 | ||||||||||||||||||
Consumer mortgages | 2,926,712 | — | 7,425 | 98 | — | 2,934,235 | ||||||||||||||||||
Home equity lines | 1,501,316 | — | 13,130 | 174 | 1,176 | 1,515,796 | ||||||||||||||||||
Credit cards | 255,904 | — | 858 | — | 1,483 | (4) | 258,245 | |||||||||||||||||
Other consumer loans | 1,912,902 | — | 3,841 | — | — | 1,916,743 | ||||||||||||||||||
Total consumer | 6,596,834 | — | 25,254 | 272 | 2,659 | 6,625,019 | ||||||||||||||||||
Total loans | $ | 25,458,715 | $ | 232,952 | $ | 274,918 | $ | 1,472 | $ | 2,659 | $ | 25,970,716 | (7) | |||||||||||
(dollars in thousands) | ASC 310-30 Loans | ||
Contractually required principal and interest at acquisition | $ | 8,377,942 | |
Non-accretable difference (expected losses and foregone interest) | (163,147 | ) | |
Cash flows expected to be collected at acquisition | 8,214,795 | ||
Accretable yield | (1,066,689 | ) | |
Basis in ASC 310-30 loans at acquisition | $ | 7,148,106 | |
(dollars in thousands) | Three Months Ended March 31, 2019 | ||
Beginning balance | $ | — | |
Additions | 1,066,689 | ||
Transfers from non-accretable difference to accretable yield | — | ||
Accretion | (88,928 | ) | |
Changes in expected cash flows not affecting non-accretable differences(1) | — | ||
Ending balance | $ | 977,761 | |
Allowance for Loan Losses and Recorded Investment in Loans | Allowance for Loan Losses and Recorded Investment in Loans | Allowance for Loan Losses and Recorded Investment in Loans | ||||||||||||||||||||||||||||
As Of and For The Six Months Ended June 30, 2018 | As Of and For The Three Months Ended March 31, 2019 | |||||||||||||||||||||||||||||
(in thousands) | Commercial & Industrial | Commercial Real Estate | Consumer | Total | Commercial & Industrial | Commercial Real Estate | Consumer | Total | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Beginning balance | $ | 126,803 | $ | 74,998 | $ | 47,467 | $ | 249,268 | $ | 133,123 | $ | 68,796 | $ | 48,636 | $ | 250,555 | ||||||||||||||
Charge-offs | (23,786 | ) | (2,446 | ) | (9,894 | ) | (36,126 | ) | (13,039 | ) | (1,233 | ) | (6,427 | ) | (20,699 | ) | ||||||||||||||
Recoveries | 3,995 | 6,964 | 3,058 | 14,017 | 1,990 | 344 | 1,277 | 3,611 | ||||||||||||||||||||||
Provision for loan losses | 23,323 | (4,311 | ) | 5,554 | 24,566 | 13,565 | 1,102 | 8,902 | 23,569 | |||||||||||||||||||||
Ending balance(1) | $ | 130,335 | $ | 75,205 | $ | 46,185 | $ | 251,725 | $ | 135,639 | $ | 69,009 | $ | 52,388 | $ | 257,036 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | 9,474 | $ | 4,687 | $ | 771 | $ | 14,932 | $ | 17,948 | $ | 1,610 | $ | 763 | $ | 20,321 | ||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 120,861 | $ | 70,518 | $ | 45,414 | $ | 236,793 | $ | 117,691 | $ | 67,399 | $ | 51,625 | $ | 236,715 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||||||
Ending balance: total loans(1)(2) | $ | 12,275,472 | $ | 6,644,171 | $ | 6,237,130 | $ | 25,156,773 | ||||||||||||||||||||||
Ending balance: total loans(2) | $ | 16,108,497 | $ | 10,262,372 | $ | 9,287,287 | $ | 35,658,156 | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 107,544 | $ | 53,805 | $ | 27,676 | $ | 189,025 | $ | 135,825 | $ | 28,107 | $ | 28,347 | $ | 192,279 | ||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 12,167,928 | $ | 6,590,366 | $ | 6,209,454 | $ | 24,967,748 | ||||||||||||||||||||||
Ending balance: collectively evaluated for impairment(3) | $ | 13,680,451 | $ | 7,854,004 | $ | 7,018,033 | $ | 28,552,488 | ||||||||||||||||||||||
Ending balance: acquired loans accounted for under ASC 310-30(4) | $ | 2,292,221 | $ | 2,380,261 | $ | 2,240,907 | $ | 6,913,389 | ||||||||||||||||||||||
As Of and For The Six Months Ended June 30, 2017 | As Of and For The Three Months Ended March 31, 2018 | |||||||||||||||||||||||||||||
(in thousands) | Commercial & Industrial | Commercial Real Estate | Consumer | Total | Commercial & Industrial | Commercial Real Estate | Consumer | Total | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Beginning balance | $ | 125,778 | $ | 81,816 | $ | 44,164 | $ | 251,758 | $ | 126,803 | $ | 74,998 | $ | 47,467 | $ | 249,268 | ||||||||||||||
Charge-offs | (19,535 | ) | (3,207 | ) | (9,656 | ) | (32,398 | ) | (8,015 | ) | (1,911 | ) | (4,455 | ) | (14,381 | ) | ||||||||||||||
Recoveries | 3,282 | 3,648 | 2,871 | 9,801 | 3,112 | 5,723 | 1,266 | 10,101 | ||||||||||||||||||||||
Provision for loan losses | 13,912 | (4,730 | ) | 9,752 | 18,934 | 12,845 | (4,819 | ) | 4,750 | 12,776 | ||||||||||||||||||||
Ending balance(1) | $ | 123,437 | $ | 77,527 | $ | 47,131 | $ | 248,095 | $ | 134,745 | $ | 73,991 | $ | 49,028 | $ | 257,764 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | 7,226 | $ | 4,386 | $ | 1,038 | $ | 12,650 | $ | 14,405 | $ | 3,740 | $ | 797 | $ | 18,942 | ||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 116,211 | $ | 73,141 | $ | 46,093 | $ | 235,445 | $ | 120,340 | $ | 70,251 | $ | 48,231 | $ | 238,822 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||||||
Ending balance: total loans(1)(3) | $ | 11,742,945 | $ | 7,422,234 | $ | 5,291,371 | $ | 24,456,550 | ||||||||||||||||||||||
Ending balance: total loans(1)(5) | $ | 12,101,917 | $ | 6,835,727 | $ | 5,969,354 | $ | 24,906,998 | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 122,889 | $ | 73,638 | $ | 31,688 | $ | 228,215 | $ | 112,823 | $ | 49,221 | $ | 29,608 | $ | 191,652 | ||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 11,620,056 | $ | 7,348,596 | $ | 5,259,683 | $ | 24,228,335 | $ | 11,989,094 | $ | 6,786,506 | $ | 5,939,746 | $ | 24,715,346 | ||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | |||||||||||||||
As Of and For The Three Months Ended June 30, 2018 | |||||||||||||||
(in thousands) | Commercial & Industrial | Commercial Real Estate | Consumer | Total | |||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | $ | 134,745 | $ | 73,991 | $ | 49,028 | $ | 257,764 | |||||||
Charge-offs | (15,770 | ) | (523 | ) | (5,211 | ) | (21,504 | ) | |||||||
Recoveries | 1,635 | 480 | 1,560 | 3,675 | |||||||||||
Provision for loan losses | 9,725 | 1,257 | 808 | 11,790 | |||||||||||
Ending balance(1) | $ | 130,335 | $ | 75,205 | $ | 46,185 | $ | 251,725 | |||||||
Ending balance: individually evaluated for impairment | $ | 9,474 | $ | 4,687 | $ | 771 | $ | 14,932 | |||||||
Ending balance: collectively evaluated for impairment | $ | 120,861 | $ | 70,518 | $ | 45,414 | $ | 236,793 | |||||||
Loans: | |||||||||||||||
Ending balance: total loans(1)(2) | $ | 12,275,472 | $ | 6,644,171 | $ | 6,237,130 | $ | 25,156,773 | |||||||
Ending balance: individually evaluated for impairment | $ | 107,544 | $ | 53,805 | $ | 27,676 | $ | 189,025 | |||||||
Ending balance: collectively evaluated for impairment | $ | 12,167,928 | $ | 6,590,366 | $ | 6,209,454 | $ | 24,967,748 | |||||||
As Of and For The Three Months Ended June 30, 2017 | |||||||||||||||
(in thousands) | Commercial & Industrial | Commercial Real Estate | Consumer | Total | |||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | $ | 127,096 | $ | 78,314 | $ | 48,104 | $ | 253,514 | |||||||
Charge-offs | (12,642 | ) | (1,299 | ) | (5,722 | ) | (19,663 | ) | |||||||
Recoveries | 1,458 | 759 | 1,767 | 3,984 | |||||||||||
Provision for loan losses | 7,525 | (247 | ) | 2,982 | 10,260 | ||||||||||
Ending balance(1) | $ | 123,437 | $ | 77,527 | $ | 47,131 | $ | 248,095 | |||||||
Ending balance: individually evaluated for impairment | $ | 7,226 | $ | 4,386 | $ | 1,038 | $ | 12,650 | |||||||
Ending balance: collectively evaluated for impairment | $ | 116,211 | $ | 73,141 | $ | 46,093 | $ | 235,445 | |||||||
Loans: | |||||||||||||||
Ending balance: total loans(1)(3) | $ | 11,742,945 | $ | 7,422,234 | $ | 5,291,371 | $ | 24,456,550 | |||||||
Ending balance: individually evaluated for impairment | $ | 122,889 | $ | 73,638 | $ | 31,688 | $ | 228,215 | |||||||
Ending balance: collectively evaluated for impairment | $ | 11,620,056 | $ | 7,348,596 | $ | 5,259,683 | $ | 24,228,335 | |||||||
Impaired Loans (including accruing TDRs) | |||||||||||||||||||||||||||
June 30, 2018 | Six Months Ended June 30, 2018 | Three Months Ended June 30, 2018 | |||||||||||||||||||||||||
(in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 21,549 | $ | 32,458 | $ | — | $ | 11,129 | $ | — | $ | 13,575 | $ | — | |||||||||||||
Owner-occupied | — | — | — | — | — | — | — | ||||||||||||||||||||
Total commercial and industrial | 21,549 | 32,458 | — | 11,129 | — | 13,575 | — | ||||||||||||||||||||
Investment properties | — | — | — | — | — | — | — | ||||||||||||||||||||
1-4 family properties | — | — | — | — | — | — | — | ||||||||||||||||||||
Land and development | — | — | — | 19 | — | — | — | ||||||||||||||||||||
Total commercial real estate | — | — | — | 19 | — | — | — | ||||||||||||||||||||
Home equity lines | — | — | — | 1,423 | — | 724 | — | ||||||||||||||||||||
Consumer mortgages | 62 | 87 | — | 1,330 | — | 1,780 | — | ||||||||||||||||||||
Credit cards | — | — | — | — | — | — | — | ||||||||||||||||||||
Other consumer loans | — | — | — | — | — | — | — | ||||||||||||||||||||
Total consumer | 62 | 87 | — | 2,753 | — | 2,504 | — | ||||||||||||||||||||
Total impaired loans with no related allowance recorded | $ | 21,611 | $ | 32,545 | $ | — | $ | 13,901 | $ | — | $ | 16,079 | $ | — | |||||||||||||
With allowance recorded | |||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 45,171 | $ | 45,385 | $ | 6,813 | $ | 62,564 | $ | 428 | $ | 57,930 | $ | 155 | |||||||||||||
Owner-occupied | 40,824 | 40,884 | 2,660 | 38,073 | 730 | 38,432 | 373 | ||||||||||||||||||||
Total commercial and industrial | 85,995 | 86,269 | 9,473 | 100,637 | 1,158 | 96,362 | 528 | ||||||||||||||||||||
Investment properties | 24,218 | 24,218 | 1,659 | 23,604 | 418 | 24,439 | 220 | ||||||||||||||||||||
1-4 family properties | 10,458 | 10,458 | 309 | 11,466 | 442 | 11,217 | 226 | ||||||||||||||||||||
Land and development | 19,129 | 20,869 | 2,720 | 18,280 | 150 | 18,428 | 74 | ||||||||||||||||||||
Total commercial real estate | 53,805 | 55,545 | 4,688 | 53,350 | 1,010 | 54,084 | 520 | ||||||||||||||||||||
Home equity lines | 3,915 | 3,915 | 174 | 3,822 | 76 | 3,262 | 30 | ||||||||||||||||||||
Consumer mortgages | 18,767 | 18,767 | 350 | 19,283 | 394 | 19,459 | 199 | ||||||||||||||||||||
Credit cards | — | — | — | — | — | 4,985 | — | ||||||||||||||||||||
Other consumer loans | 4,932 | 4,938 | 248 | 5,188 | 143 | — | 72 | ||||||||||||||||||||
Total consumer | 27,614 | 27,620 | 772 | 28,293 | 613 | 27,706 | 301 | ||||||||||||||||||||
Total impaired loans with allowance recorded | $ | 167,414 | $ | 169,434 | $ | 14,933 | $ | 182,280 | $ | 2,781 | $ | 178,152 | $ | 1,349 | |||||||||||||
Total impaired loans | |||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 66,720 | $ | 77,843 | $ | 6,813 | $ | 73,693 | $ | 428 | $ | 71,505 | $ | 155 | |||||||||||||
Owner-occupied | 40,824 | 40,884 | 2,660 | 38,073 | 730 | 38,432 | 373 | ||||||||||||||||||||
Total commercial and industrial | 107,544 | 118,727 | 9,473 | 111,766 | 1,158 | 109,937 | 528 | ||||||||||||||||||||
Investment properties | 24,218 | 24,218 | 1,659 | 23,604 | 418 | 24,439 | 220 | ||||||||||||||||||||
1-4 family properties | 10,458 | 10,458 | 309 | 11,466 | 442 | 11,217 | 226 | ||||||||||||||||||||
Land and development | 19,129 | 20,869 | 2,720 | 18,299 | 150 | 18,428 | 74 | ||||||||||||||||||||
Total commercial real estate | 53,805 | 55,545 | 4,688 | 53,369 | 1,010 | 54,084 | 520 | ||||||||||||||||||||
Home equity lines | 3,915 | 3,915 | 174 | 5,245 | 76 | 3,986 | 30 | ||||||||||||||||||||
Consumer mortgages | 18,829 | 18,854 | 350 | 20,613 | 394 | 21,239 | 199 | ||||||||||||||||||||
Credit cards | — | — | — | — | — | 4,985 | — | ||||||||||||||||||||
Other consumer loans | 4,932 | 4,938 | 248 | 5,188 | 143 | — | 72 | ||||||||||||||||||||
Total consumer | 27,676 | 27,707 | 772 | 31,046 | 613 | 30,210 | 301 | ||||||||||||||||||||
Total impaired loans | $ | 189,025 | $ | 201,979 | $ | 14,933 | $ | 196,181 | $ | 2,781 | $ | 194,231 | $ | 1,349 | |||||||||||||
Impaired Loans (including accruing TDRs) | |||||||||||||||||||
December 31, 2017 | Year Ended December 31, 2017 | ||||||||||||||||||
(in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||
With no related allowance recorded | |||||||||||||||||||
Commercial, financial and agricultural | $ | 8,220 | $ | 9,576 | $ | — | $ | 21,686 | $ | — | |||||||||
Owner-occupied | — | — | — | 6,665 | — | ||||||||||||||
Total commercial and industrial | 8,220 | 9,576 | — | 28,351 | — | ||||||||||||||
Investment properties | — | — | — | 123 | — | ||||||||||||||
1-4 family properties | — | — | — | 323 | — | ||||||||||||||
Land and development | 56 | 1,740 | — | 1,816 | — | ||||||||||||||
Total commercial real estate | 56 | 1,740 | — | 2,262 | — | ||||||||||||||
Home equity lines | 2,746 | 2,943 | — | 1,205 | — | ||||||||||||||
Consumer mortgages | — | — | — | 496 | — | ||||||||||||||
Credit cards | — | — | — | — | — | ||||||||||||||
Other consumer loans | — | — | — | — | — | ||||||||||||||
Total consumer | 2,746 | 2,943 | — | 1,701 | — | ||||||||||||||
Total impaired loans with no related allowance recorded | $ | 11,022 | $ | 14,259 | $ | — | $ | 32,314 | $ | — | |||||||||
With allowance recorded | |||||||||||||||||||
Commercial, financial and agricultural | $ | 65,715 | $ | 65,851 | $ | 7,406 | $ | 50,468 | $ | 1,610 | |||||||||
Owner-occupied | 37,399 | 37,441 | 2,109 | 40,498 | 1,382 | ||||||||||||||
Total commercial and industrial | 103,114 | 103,292 | 9,515 | 90,966 | 2,992 | ||||||||||||||
Investment properties | 23,364 | 23,364 | 1,100 | 28,749 | 1,144 | ||||||||||||||
1-4 family properties | 15,056 | 15,056 | 504 | 16,257 | 925 | ||||||||||||||
Land and development | 18,420 | 18,476 | 2,636 | 23,338 | 404 | ||||||||||||||
Total commercial real estate | 56,840 | 56,896 | 4,240 | 68,344 | 2,473 | ||||||||||||||
Home equity lines | 5,096 | 5,096 | 114 | 7,476 | 334 | ||||||||||||||
Consumer mortgages | 18,668 | 18,668 | 569 | 19,144 | 896 | ||||||||||||||
Credit cards | — | — | — | — | — | ||||||||||||||
Other consumer loans | 5,546 | 5,546 | 470 | 4,765 | 266 | ||||||||||||||
Total consumer | 29,310 | 29,310 | 1,153 | 31,385 | 1,496 | ||||||||||||||
Total impaired loans with allowance recorded | $ | 189,264 | $ | 189,498 | $ | 14,908 | $ | 190,695 | $ | 6,961 | |||||||||
Total impaired loans | |||||||||||||||||||
Commercial, financial and agricultural | $ | 73,935 | $ | 75,427 | $ | 7,406 | $ | 72,154 | $ | 1,610 | |||||||||
Owner-occupied | 37,399 | 37,441 | 2,109 | 47,163 | 1,382 | ||||||||||||||
Total commercial and industrial | 111,334 | 112,868 | 9,515 | 119,317 | 2,992 | ||||||||||||||
Investment properties | 23,364 | 23,364 | 1,100 | 28,872 | 1,144 | ||||||||||||||
1-4 family properties | 15,056 | 15,056 | 504 | 16,580 | 925 | ||||||||||||||
Land and development | 18,476 | 20,216 | 2,636 | 25,154 | 404 | ||||||||||||||
Total commercial real estate | 56,896 | 58,636 | 4,240 | 70,606 | 2,473 | ||||||||||||||
Home equity lines | 7,842 | 8,039 | 114 | 8,681 | 334 | ||||||||||||||
Consumer mortgages | 18,668 | 18,668 | 569 | 19,640 | 896 | ||||||||||||||
Credit cards | — | — | — | — | — | ||||||||||||||
Other consumer loans | 5,546 | 5,546 | 470 | 4,765 | 266 | ||||||||||||||
Total consumer | 32,056 | 32,253 | 1,153 | 33,086 | 1,496 | ||||||||||||||
Total impaired loans | $ | 200,286 | $ | 203,757 | $ | 14,908 | $ | 223,009 | $ | 6,961 | |||||||||
Impaired Loans (including accruing TDRs) | |||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||
Recorded Investment | Recorded Investment | ||||||||||||||||||||||||
(in thousands) | Unpaid Principal Balance | Without an ALL | With an ALL | Related Allowance | Unpaid Principal Balance | Without an ALL | With an ALL | Related Allowance | |||||||||||||||||
Commercial, financial and agricultural | $ | 98,263 | $ | 32,007 | $ | 53,145 | $ | 15,063 | $ | 65,150 | $ | 22,298 | $ | 34,222 | $ | 7,133 | |||||||||
Owner-occupied | 53,433 | 124 | 50,549 | 2,885 | 49,588 | — | 48,902 | 3,074 | |||||||||||||||||
Total commercial and industrial | 151,696 | 32,131 | 103,694 | 17,948 | 114,738 | 22,298 | 83,124 | 10,207 | |||||||||||||||||
Investment properties | 13,019 | — | 13,019 | 894 | 13,916 | — | 13,916 | 1,523 | |||||||||||||||||
1-4 family properties | 5,044 | — | 5,044 | 144 | 5,586 | — | 5,586 | 131 | |||||||||||||||||
Land and development | 12,632 | 265 | 9,779 | 572 | 16,283 | 265 | 13,431 | 944 | |||||||||||||||||
Total commercial real estate | 30,695 | 265 | 27,842 | 1,610 | 35,785 | 265 | 32,933 | 2,598 | |||||||||||||||||
Consumer mortgages | 19,751 | — | 19,751 | 280 | 19,506 | — | 19,506 | 343 | |||||||||||||||||
Home equity lines | 3,389 | — | 3,339 | 307 | 3,264 | — | 3,235 | 224 | |||||||||||||||||
Other consumer loans | 5,257 | — | 5,257 | 176 | 5,565 | — | 5,565 | 177 | |||||||||||||||||
Total consumer | 28,397 | — | 28,347 | 763 | 28,335 | — | 28,306 | 744 | |||||||||||||||||
Total loans | $ | 210,788 | $ | 32,396 | $ | 159,883 | $ | 20,321 | $ | 178,858 | $ | 22,563 | $ | 144,363 | $ | 13,549 | |||||||||
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||||||||
(in thousands) | Average Recorded Investment | Interest Income Recognized(1) | Average Recorded Investment | Interest Income Recognized(1) | |||||||||
Commercial, financial and agricultural | $ | 76,353 | $ | 554 | $ | 75,880 | $ | 399 | |||||
Owner-occupied | 50,038 | 526 | 37,715 | 370 | |||||||||
Total commercial and industrial | 126,391 | 1,080 | 113,595 | 769 | |||||||||
Investment properties | 13,040 | 142 | 22,769 | 198 | |||||||||
1-4 family properties | 5,509 | 131 | 11,715 | 216 | |||||||||
Land and development | 11,062 | 35 | 18,170 | 76 | |||||||||
Total commercial real estate | 29,611 | 308 | 52,654 | 490 | |||||||||
Consumer mortgages | 20,037 | 213 | 19,986 | 195 | |||||||||
Home equity lines | 3,302 | 35 | 6,505 | 45 | |||||||||
Other consumer loans | 5,463 | 78 | 5,391 | 72 | |||||||||
Total consumer | 28,802 | 326 | 31,882 | 312 | |||||||||
Total loans | $ | 184,804 | $ | 1,714 | $ | 198,131 | $ | 1,571 | |||||
(1) | Of the interest income recognized during the three months ended March 31, 2019 and 2018, cash-basis interest income was $400 thousand and $141 thousand, respectively. |
TDRs by Concession Type | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2018 | Three Months Ended March 31, 2019 | ||||||||||||||||||||||||||||||||||
(in thousands, except contract data) | Number of Contracts | Principal Forgiveness | Below Market Interest Rate | Term Extensions and/or Other Concessions | Total | Number of Contracts | Below Market Interest Rate | Other Concessions(1) | Total | ||||||||||||||||||||||||||
Commercial, financial and agricultural | 14 | $ | — | $ | — | $ | 1,565 | $ | 1,565 | 13 | $ | 1,783 | $ | 899 | $ | 2,682 | |||||||||||||||||||
Owner-occupied | 6 | — | 4,799 | 684 | 5,483 | 2 | 949 | — | 949 | ||||||||||||||||||||||||||
Total commercial and industrial | 20 | — | 4,799 | 2,249 | 7,048 | 15 | 2,732 | 899 | 3,631 | ||||||||||||||||||||||||||
Investment properties | 3 | — | 6,011 | 2,215 | 8,226 | 1 | 482 | — | 482 | ||||||||||||||||||||||||||
1-4 family properties | 7 | — | 965 | 492 | 1,457 | 6 | 793 | — | 793 | ||||||||||||||||||||||||||
Land and development | 3 | — | — | 1,786 | 1,786 | ||||||||||||||||||||||||||||||
Total commercial real estate | 13 | — | 6,976 | 4,493 | 11,469 | 7 | 1,275 | — | 1,275 | ||||||||||||||||||||||||||
Consumer mortgages | 4 | 128 | 1,214 | 1,342 | |||||||||||||||||||||||||||||||
Home equity lines | 3 | — | 172 | 148 | 320 | 1 | — | 105 | 105 | ||||||||||||||||||||||||||
Consumer mortgages | 14 | — | 4,695 | 87 | 4,782 | ||||||||||||||||||||||||||||||
Credit cards | — | — | — | — | — | ||||||||||||||||||||||||||||||
Other consumer loans | 31 | — | 925 | 821 | 1,746 | 18 | 108 | 1,046 | 1,154 | ||||||||||||||||||||||||||
Total consumer | 48 | — | 5,792 | 1,056 | 6,848 | 23 | 236 | 2,365 | 2,601 | ||||||||||||||||||||||||||
Total TDRs | 81 | $ | — | $ | 17,567 | $ | 7,798 | $ | 25,365 | (1 | ) | 45 | $ | 4,243 | $ | 3,264 | $ | 7,507 | (2) | ||||||||||||||||
Three Months Ended June 30, 2018 | |||||||||||||||||||||||||||||||||||
(in thousands, except contract data) | Number of Contracts | Principal Forgiveness | Below Market Interest Rate | Term Extensions and/or Other Concessions | Total | ||||||||||||||||||||||||||||||
Commercial, financial and agricultural | 5 | $ | — | $ | — | $ | 576 | $ | 576 | ||||||||||||||||||||||||||
Owner-occupied | 4 | — | 2,094 | 592 | 2,686 | ||||||||||||||||||||||||||||||
Total commercial and industrial | 9 | — | 2,094 | 1,168 | 3,262 | ||||||||||||||||||||||||||||||
Investment properties | 2 | — | 6,011 | 256 | 6,267 | ||||||||||||||||||||||||||||||
1-4 family properties | 1 | — | — | 492 | 492 | ||||||||||||||||||||||||||||||
Land and development | 3 | — | — | 1,786 | 1,786 | ||||||||||||||||||||||||||||||
Total commercial real estate | 6 | — | 6,011 | 2,534 | 8,545 | ||||||||||||||||||||||||||||||
Home equity lines | 3 | — | 172 | 148 | 320 | ||||||||||||||||||||||||||||||
Consumer mortgages | 7 | — | 2,963 | 87 | 3,050 | ||||||||||||||||||||||||||||||
Credit cards | — | — | — | — | — | ||||||||||||||||||||||||||||||
Other consumer loans | 17 | — | 388 | 313 | 701 | ||||||||||||||||||||||||||||||
Total consumer | 27 | — | 3,523 | 548 | 4,071 | ||||||||||||||||||||||||||||||
Total TDRs | 42 | $ | — | $ | 11,628 | $ | 4,250 | $ | 15,878 | (1 | ) | ||||||||||||||||||||||||
Three Months Ended March 31, 2018 | |||||||||||||||
(in thousands, except contract data) | Number of Contracts | Below Market Interest Rate | Other Concessions(1) | Total | |||||||||||
Commercial, financial and agricultural | 9 | $ | — | $ | 989 | $ | 989 | ||||||||
Owner-occupied | 2 | 2,705 | 93 | 2,798 | |||||||||||
Total commercial and industrial | 11 | 2,705 | 1,082 | 3,787 | |||||||||||
Investment properties | 1 | — | 1,959 | 1,959 | |||||||||||
1-4 family properties | 6 | 963 | — | 963 | |||||||||||
Total commercial real estate | 7 | 963 | 1,959 | 2,922 | |||||||||||
Consumer mortgages | 7 | 1,733 | — | 1,733 | |||||||||||
Other consumer loans | 14 | 537 | 508 | 1,045 | |||||||||||
Total consumer | 21 | 2,270 | 508 | 2,778 | |||||||||||
Total TDRs | 39 | $ | 5,938 | $ | 3,549 | $ | 9,487 | (3) | |||||||
TDRs by Concession Type | ||||||||||||||||||||
Six Months Ended June 30, 2017 | ||||||||||||||||||||
(in thousands, except contract data) | Number of Contracts | Principal Forgiveness | Below Market Interest Rate | Term Extensions and/or Other Concessions | Total | |||||||||||||||
Commercial, financial and agricultural | 28 | $ | — | $ | 5,760 | $ | 6,279 | $ | 12,039 | |||||||||||
Owner-occupied | 1 | — | — | 22 | 22 | |||||||||||||||
Total commercial and industrial | 29 | — | 5,760 | 6,301 | 12,061 | |||||||||||||||
Investment properties | — | — | — | — | — | |||||||||||||||
1-4 family properties | 16 | — | 2,089 | 513 | 2,602 | |||||||||||||||
Land and development | 1 | — | — | 135 | 135 | |||||||||||||||
Total commercial real estate | 17 | — | 2,089 | 648 | 2,737 | |||||||||||||||
Home equity lines | — | — | — | — | — | |||||||||||||||
Consumer mortgages | 1 | — | — | 9 | 9 | |||||||||||||||
Credit cards | — | — | — | — | — | |||||||||||||||
Other consumer loans | 8 | — | — | 570 | 570 | |||||||||||||||
Total consumer | 9 | — | — | 579 | 579 | |||||||||||||||
Total TDRs | 55 | $ | — | $ | 7,849 | $ | 7,528 | $ | 15,377 | (2 | ) | |||||||||
Three Months Ended June 30, 2017 | ||||||||||||||||||||
(in thousands, except contract data) | Number of Contracts | Principal Forgiveness | Below Market Interest Rate | Term Extensions and/or Other Concessions | Total | |||||||||||||||
Commercial, financial and agricultural | 10 | $ | — | $ | 1,895 | $ | 740 | $ | 2,635 | |||||||||||
Owner-occupied | 1 | — | — | 22 | 22 | |||||||||||||||
Total commercial and industrial | 11 | — | 1,895 | 762 | 2,657 | |||||||||||||||
Investment properties | — | — | — | — | — | |||||||||||||||
1-4 family properties | 8 | — | 478 | 196 | 674 | |||||||||||||||
Land and development | 1 | — | — | 135 | 135 | |||||||||||||||
Total commercial real estate | 9 | — | 478 | 331 | 809 | |||||||||||||||
Home equity lines | — | — | — | — | — | |||||||||||||||
Consumer mortgages | 1 | — | — | 9 | 9 | |||||||||||||||
Credit cards | — | — | — | — | — | |||||||||||||||
Other consumer loans | 5 | — | — | 295 | 295 | |||||||||||||||
Total consumer | 6 | — | — | 304 | 304 | |||||||||||||||
Total TDRs | 26 | $ | — | $ | 2,373 | $ | 1,397 | $ | 3,770 | (2 | ) | |||||||||
(in thousands) | Synovus Bank Reporting Unit | Trust Services Reporting Unit | Total | |||||||||
Balance as of December 31, 2018 | $ | 32,884 | $ | 24,431 | $ | 57,315 | ||||||
Goodwill acquired during the year (preliminary allocation) | 427,685 | — | 427,685 | |||||||||
Balance as of March 31, 2019 | $ | 460,569 | $ | 24,431 | $ | 485,000 | ||||||
(in thousands) | March 31, 2019 | December 31, 2018 | ||||||
Other intangible assets, gross carrying amount | $ | 81,128 | $ | 13,140 | ||||
Other intangible assets, adjustment | — | (212 | ) | |||||
Other intangible assets, accumulated amortization | (6,445 | ) | (3,053 | ) | ||||
Other intangible assets, net carrying amount | $ | 74,683 | $ | 9,875 | ||||
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Net of Income Taxes) | |||||||||||||||
(in thousands) | Net unrealized gains (losses) on cash flow hedges | Net unrealized gains (losses) on investment securities available for sale | Post-retirement unfunded health benefit | Total | |||||||||||
Balance at December 31, 2017 | $ | (12,137 | ) | $ | (43,470 | ) | $ | 853 | $ | (54,754 | ) | ||||
Other comprehensive income (loss) before reclassifications | — | (64,409 | ) | — | (64,409 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 960 | (46 | ) | 914 | ||||||||||
Net current period other comprehensive loss | — | (63,449 | ) | (46 | ) | (63,495 | ) | ||||||||
Reclassification from adoption of ASU 2018-02 | — | (7,763 | ) | 175 | (7,588 | ) | |||||||||
Cumulative-effect adjustment from adoption of ASU 2016-01 | — | 117 | — | 117 | |||||||||||
Balance as of June 30, 2018 | $ | (12,137 | ) | $ | (114,565 | ) | $ | 982 | $ | (125,720 | ) | ||||
Balance as of April 1, 2018 | $ | (12,137 | ) | $ | (96,647 | ) | $ | 1,007 | $ | (107,777 | ) | ||||
Other comprehensive income (loss) before reclassifications | — | (18,878 | ) | — | (18,878 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 960 | (25 | ) | 935 | ||||||||||
Net current period other comprehensive income | — | (17,918 | ) | (25 | ) | (17,943 | ) | ||||||||
Balance as of June 30, 2018 | $ | (12,137 | ) | $ | (114,565 | ) | $ | 982 | $ | (125,720 | ) | ||||
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Net of Income Taxes) | |||||||||||||||
(in thousands) | Net unrealized losses on cash flow hedges(1) | Net unrealized gains (losses) on investment securities available for sale(1) | Post-retirement unfunded health benefit | Total | |||||||||||
Balance as of December 31, 2018 | $ | (12,137 | ) | $ | (83,179 | ) | $ | 896 | $ | (94,420 | ) | ||||
Other comprehensive income (loss) before reclassifications | — | 76,164 | — | 76,164 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (56 | ) | (30 | ) | (86 | ) | ||||||||
Net current period other comprehensive income (loss) | — | 76,108 | (30 | ) | 76,078 | ||||||||||
Balance as of March 31, 2019 | $ | (12,137 | ) | $ | (7,071 | ) | $ | 866 | $ | (18,342 | ) | ||||
Balance as of December 31, 2017 | $ | (12,137 | ) | $ | (43,470 | ) | $ | 853 | $ | (54,754 | ) | ||||
Other comprehensive income (loss) before reclassifications | — | (45,531 | ) | — | (45,531 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | (21 | ) | (21 | ) | |||||||||
Net current period other comprehensive income (loss) | — | (45,531 | ) | (21 | ) | (45,552 | ) | ||||||||
Reclassification from adoption of ASU 2018-02 | — | (7,763 | ) | 175 | (7,588 | ) | |||||||||
Cumulative-effect adjustment from adoption of ASU 2016-01 | — | 117 | — | 117 | |||||||||||
Balance as of March 31, 2018 | $ | (12,137 | ) | $ | (96,647 | ) | $ | 1,007 | $ | (107,777 | ) | ||||
(in thousands) | Net unrealized gains (losses) on cash flow hedges | Net unrealized gains (losses) on investment securities available for sale | Post-retirement unfunded health benefit | Total | |||||||||||
Balance at December 31, 2016 | $ | (12,217 | ) | $ | (44,324 | ) | $ | 882 | $ | (55,659 | ) | ||||
Other comprehensive income before reclassifications | — | 12,453 | — | 12,453 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 80 | (4,715 | ) | (24 | ) | (4,659 | ) | ||||||||
Net current period other comprehensive income | 80 | 7,738 | (24 | ) | 7,794 | ||||||||||
Balance as of June 30, 2017 | $ | (12,137 | ) | $ | (36,586 | ) | $ | 858 | $ | (47,865 | ) | ||||
Balance as of April 1, 2017 | $ | (12,177 | ) | $ | (43,444 | ) | $ | 870 | $ | (54,751 | ) | ||||
Other comprehensive income before reclassifications | — | 6,857 | — | 6,857 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 40 | 1 | (12 | ) | 29 | ||||||||||
Net current period other comprehensive income (loss) | 40 | 6,858 | (12 | ) | 6,886 | ||||||||||
Balance as of June 30, 2017 | $ | (12,137 | ) | $ | (36,586 | ) | $ | 858 | (47,865 | ) | |||||
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | ||||||||||
Details About Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Statement Where Net Income is Presented | ||||||||
For the Six Months Ended June 30, | ||||||||||
2018 | 2017 | |||||||||
Net unrealized gains (losses) on cash flow hedges: | ||||||||||
Amortization of deferred losses | $ | — | $ | (130 | ) | Interest expense | ||||
— | 50 | Income tax (expense) benefit | ||||||||
$ | — | $ | (80 | ) | Reclassifications, net of income taxes | |||||
Net unrealized gains on investment securities available for sale: | ||||||||||
Realized (losses) gains on sale of securities | $ | (1,296 | ) | $ | 7,667 | Investment securities gains, net | ||||
336 | (2,952 | ) | Income tax (expense) benefit | |||||||
$ | (960 | ) | $ | 4,715 | Reclassifications, net of income taxes | |||||
Post-retirement unfunded health benefit: | ||||||||||
Amortization of actuarial gains | $ | 68 | $ | 40 | Salaries and other personnel expense | |||||
(22 | ) | (16 | ) | Income tax (expense) benefit | ||||||
$ | 46 | $ | 24 | Reclassifications, net of income taxes | ||||||
Details About Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Statement Where Net Income is Presented | ||||||||
For the Three Months Ended June 30, | ||||||||||
2018 | 2017 | |||||||||
Net unrealized gains (losses) on cash flow hedges: | ||||||||||
Amortization of deferred losses | $ | — | $ | (65 | ) | Interest expense | ||||
— | 25 | Income tax (expense) benefit | ||||||||
$ | — | $ | (40 | ) | Reclassifications, net of income taxes | |||||
Net unrealized gains on investment securities available for sale: | ||||||||||
Realized losses on sale of securities | $ | (1,296 | ) | $ | (1 | ) | Investment securities gains, net | |||
336 | — | Income tax (expense) benefit | ||||||||
$ | (960 | ) | $ | (1 | ) | Reclassifications, net of income taxes | ||||
Post-retirement unfunded health benefit: | ||||||||||
Amortization of actuarial gains | $ | 34 | $ | 20 | Salaries and other personnel expense | |||||
(9 | ) | (8 | ) | Income tax (expense) benefit | ||||||
$ | 25 | $ | 12 | Reclassifications, net of income taxes | ||||||
March 31, 2019 | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total Assets and Liabilities at Fair Value | |||||||||||
Assets | |||||||||||||||
Trading securities: | |||||||||||||||
Mortgage-backed securities issued by U.S. Government agencies | $ | — | $ | 241 | $ | — | $ | 241 | |||||||
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises | — | 1,217 | — | 1,217 | |||||||||||
Other investments | 200 | 82 | — | 282 | |||||||||||
Total trading securities | $ | 200 | $ | 1,540 | $ | — | $ | 1,740 | |||||||
Mortgage loans held for sale | — | 55,970 | — | 55,970 | |||||||||||
Investment securities available for sale: | |||||||||||||||
U.S. Treasury securities | $ | 19,584 | $ | — | $ | — | $ | 19,584 | |||||||
U.S. Government agency securities | — | 85,281 | — | 85,281 | |||||||||||
Mortgage-backed securities issued by U.S. Government agencies | — | 91,937 | — | 91,937 | |||||||||||
Mortgage-backed securities issued by U.S. Government sponsored enterprises | — | 4,624,314 | — | 4,624,314 | |||||||||||
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | — | 987,770 | — | 987,770 | |||||||||||
Commercial mortgage-backed securities issued by U.S. Government sponsored enterprises | — | 341,825 | — | 341,825 | |||||||||||
State and municipal securities | — | 2,106 | — | 2,106 | |||||||||||
Asset-backed securities | — | 510,305 | — | 510,305 | |||||||||||
Corporate debt securities | — | 143,088 | 1,981 | 145,069 | |||||||||||
Total investment securities available for sale | $ | 19,584 | $ | 6,786,626 | $ | 1,981 | $ | 6,808,191 | |||||||
Private equity investments | — | — | 11,886 | 11,886 | |||||||||||
Mutual funds | 16,147 | — | — | 16,147 | |||||||||||
Mutual funds held in rabbi trusts | 12,579 | — | — | 12,579 | |||||||||||
GGL/SBA loans servicing asset | — | — | 3,447 | 3,447 | |||||||||||
Derivative assets: | |||||||||||||||
Interest rate contracts | $ | — | $ | 74,114 | $ | — | $ | 74,114 | |||||||
Mortgage derivatives(1) | — | 1,637 | — | 1,637 | |||||||||||
Total derivative assets | $ | — | $ | 75,751 | $ | — | $ | 75,751 | |||||||
Liabilities | |||||||||||||||
Earnout liability(2) | — | — | 14,353 | 14,353 | |||||||||||
Derivative liabilities: | |||||||||||||||
Interest rate contracts | $ | — | $ | 22,755 | $ | — | 22,755 | ||||||||
Mortgage derivatives(1) | — | 806 | — | 806 | |||||||||||
Visa derivative | — | — | 1,366 | 1,366 | |||||||||||
Total derivative liabilities | $ | — | $ | 23,561 | $ | 1,366 | $ | 24,927 | |||||||
June 30, 2018 | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total Assets and Liabilities at Fair Value | |||||||||||
Assets | |||||||||||||||
Trading securities: | |||||||||||||||
U.S. Government agency securities | $ | — | $ | 17,164 | $ | — | $ | 17,164 | |||||||
Mortgage-backed securities issued by U.S. Government agencies | — | 577 | — | 577 | |||||||||||
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises | — | 409 | — | 409 | |||||||||||
State and municipal securities | — | 2,495 | — | 2,495 | |||||||||||
Other investments | 906 | — | — | 906 | |||||||||||
Total trading securities | $ | 906 | $ | 20,645 | $ | — | $ | 21,551 | |||||||
Mortgage loans held for sale | — | 53,673 | — | 53,673 | |||||||||||
Investment securities available for sale: | |||||||||||||||
U.S. Treasury securities | 120,633 | — | — | 120,633 | |||||||||||
U.S. Government agency securities | — | 40,934 | — | 40,934 | |||||||||||
Mortgage-backed securities issued by U.S. Government agencies | — | 107,944 | — | 107,944 | |||||||||||
Mortgage-backed securities issued by U.S. Government sponsored enterprises | — | 2,526,845 | — | 2,526,845 | |||||||||||
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | — | 1,116,448 | — | 1,116,448 | |||||||||||
State and municipal securities | — | 115 | — | 115 | |||||||||||
Corporate debt and other debt securities(1) | — | 15,186 | 1,857 | 17,043 | |||||||||||
Total investment securities available for sale | $ | 120,633 | $ | 3,807,472 | $ | 1,857 | $ | 3,929,962 | |||||||
Private equity investments | — | — | 12,678 | 12,678 | |||||||||||
Mutual funds | 3,124 | — | — | 3,124 | |||||||||||
Mutual funds held in rabbi trusts | 13,638 | — | — | 13,638 | |||||||||||
GGL/SBA loans servicing asset | — | — | 4,186 | 4,186 | |||||||||||
Derivative assets: | |||||||||||||||
Interest rate contracts | — | 10,034 | — | 10,034 | |||||||||||
Mortgage derivatives(2) | — | 1,302 | — | 1,302 | |||||||||||
Total derivative assets | $ | — | $ | 11,336 | $ | — | $ | 11,336 | |||||||
Liabilities | |||||||||||||||
Trading account liabilities | — | 12,328 | — | 12,328 | |||||||||||
Earnout liability(3) | — | — | 11,348 | 11,348 | |||||||||||
Derivative liabilities: | |||||||||||||||
Interest rate contracts | — | 19,303 | — | 19,303 | |||||||||||
Mortgage derivatives(2) | — | 248 | — | 248 | |||||||||||
Visa derivative | — | — | 5,943 | 5,943 | |||||||||||
Total derivative liabilities | $ | — | $ | 19,551 | $ | 5,943 | $ | 25,494 | |||||||
December 31, 2018 | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total Assets and Liabilities at Fair Value | |||||||||||
Assets | |||||||||||||||
Trading securities: | |||||||||||||||
U.S. Government agency securities | $ | — | $ | 44 | $ | — | $ | 44 | |||||||
State and municipal securities | — | 1,064 | — | 1,064 | |||||||||||
Other investments | 1,128 | 894 | — | 2,022 | |||||||||||
Total trading securities | $ | 1,128 | $ | 2,002 | $ | — | $ | 3,130 | |||||||
Mortgage loans held for sale | — | 37,129 | — | 37,129 | |||||||||||
Investment securities available for sale: | |||||||||||||||
U.S. Treasury securities | $ | 122,077 | $ | — | $ | — | $ | 122,077 | |||||||
U.S. Government agency securities | — | 38,382 | — | 38,382 | |||||||||||
Mortgage-backed securities issued by U.S. Government agencies | — | 97,205 | — | 97,205 | |||||||||||
Mortgage-backed securities issued by U.S. Government sponsored enterprises | — | 2,398,650 | — | 2,398,650 | |||||||||||
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | — | 1,188,518 | — | 1,188,518 | |||||||||||
Commercial mortgage-backed securities issued by U.S. Government sponsored enterprises | — | 129,865 | — | 129,865 | |||||||||||
Corporate debt securities | — | 15,150 | 1,785 | 16,935 | |||||||||||
Total investment securities available for sale | $ | 122,077 | $ | 3,867,770 | $ | 1,785 | $ | 3,991,632 | |||||||
Private equity investments | — | — | 11,028 | 11,028 | |||||||||||
Mutual funds | 3,168 | — | — | 3,168 | |||||||||||
Mutual funds held in rabbi trusts | 12,844 | — | — | 12,844 | |||||||||||
GGL/SBA loans servicing asset | — | — | 3,729 | 3,729 | |||||||||||
Derivative assets: | |||||||||||||||
Interest rate contracts | $ | — | $ | 18,388 | $ | — | $ | 18,388 | |||||||
Mortgage derivatives(1) | — | 944 | — | 944 | |||||||||||
Total derivative assets | $ | — | $ | 19,332 | $ | — | $ | 19,332 | |||||||
Liabilities | |||||||||||||||
Earnout liability(2) | — | — | 14,353 | 14,353 | |||||||||||
Derivative liabilities: | |||||||||||||||
Interest rate contracts | $ | — | $ | 15,716 | $ | — | $ | 15,716 | |||||||
Mortgage derivatives(1) | — | 819 | — | 819 | |||||||||||
Visa derivative | — | — | 1,673 | 1,673 | |||||||||||
Total derivative liabilities | $ | — | $ | 16,535 | $ | 1,673 | $ | 18,208 | |||||||
December 31, 2017 | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total Assets and Liabilities at Fair Value | |||||||||||
Assets | |||||||||||||||
Trading securities: | |||||||||||||||
Mortgage-backed securities issued by U.S. Government agencies | $ | — | $ | 3,002 | $ | — | $ | 3,002 | |||||||
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises | — | 296 | — | 296 | |||||||||||
Other investments | 522 | — | — | 522 | |||||||||||
Total trading securities | $ | 522 | $ | 3,298 | $ | — | $ | 3,820 | |||||||
Mortgage loans held for sale | — | 48,024 | — | 48,024 | |||||||||||
Investment securities available for sale: | |||||||||||||||
U.S. Treasury securities | 82,674 | — | — | 82,674 | |||||||||||
U.S. Government agency securities | — | 10,862 | — | 10,862 | |||||||||||
Mortgage-backed securities issued by U.S. Government agencies | — | 120,440 | — | 120,440 | |||||||||||
Mortgage-backed securities issued by U.S. Government sponsored enterprises | — | 2,640,523 | — | 2,640,523 | |||||||||||
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | — | 1,111,999 | — | 1,111,999 | |||||||||||
State and municipal securities | — | 180 | — | 180 | |||||||||||
Corporate debt and other securities(1) | 3,162 | 15,294 | 1,935 | 20,391 | |||||||||||
Total investment securities available for sale | $ | 85,836 | $ | 3,899,298 | $ | 1,935 | $ | 3,987,069 | |||||||
Private equity investments | — | — | 15,771 | 15,771 | |||||||||||
Mutual funds held in rabbi trusts | 14,140 | — | — | 14,140 | |||||||||||
GGL/SBA loan servicing asset | — | — | 4,101 | 4,101 | |||||||||||
Derivative assets: | |||||||||||||||
Interest rate contracts | — | 10,786 | — | 10,786 | |||||||||||
Mortgage derivatives(2) | — | 936 | — | 936 | |||||||||||
Total derivative assets | $ | — | $ | 11,722 | $ | — | $ | 11,722 | |||||||
Liabilities | |||||||||||||||
Trading account liabilities | — | 1,000 | — | 1,000 | |||||||||||
Earnout liability(3) | — | — | 11,348 | 11,348 | |||||||||||
Derivative liabilities: | |||||||||||||||
Interest rate contracts | — | 12,638 | — | 12,638 | |||||||||||
Mortgage derivatives(2) | — | 129 | — | 129 | |||||||||||
Visa derivative | — | — | 4,330 | 4,330 | |||||||||||
Total derivative liabilities | $ | — | $ | 12,767 | $ | 4,330 | $ | 17,097 | |||||||
Mortgage Loans Held for Sale | |||||||
(in thousands) | As of March 31, 2019 | As of December 31, 2018 | |||||
Fair value | $ | 55,970 | $ | 37,129 | |||
Unpaid principal balance | 54,333 | 35,848 | |||||
Fair value less aggregate unpaid principal balance | $ | 1,637 | $ | 1,281 | |||
Changes in Fair Value Included in Net Income | |||||||||||||||
For the Six Months Ended June 30, | For the Three Months Ended June 30, | ||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Mortgage loans held for sale | $ | 155 | $ | 954 | $ | 40 | $ | (249 | ) | ||||||
Changes in Fair Value Included in Net Income | |||||||
For the Three Months Ended March 31, | |||||||
(in thousands) | 2019 | 2018 | |||||
Mortgage loans held for sale | $ | 356 | $ | 115 | |||
Mortgage Loans Held for Sale | |||||||
(in thousands) | As of June 30, 2018 | As of December 31, 2017 | |||||
Fair value | $ | 53,673 | $ | 48,024 | |||
Unpaid principal balance | 52,333 | 46,839 | |||||
Fair value less aggregate unpaid principal balance | $ | 1,340 | $ | 1,185 | |||
Six Months Ended June 30, 2018 | |||||||||||||||||||
(in thousands) | Investment Securities Available for Sale | Private Equity Investments | Visa Derivative | Earnout Liability(1) | GGL / SBA Loans Servicing Asset(2) | ||||||||||||||
Beginning balance, January 1, 2018 | $ | 1,935 | $ | 15,771 | $ | (4,330 | ) | $ | (11,348 | ) | $ | 4,101 | |||||||
Total (losses) gains realized/unrealized: | |||||||||||||||||||
Included in earnings | — | (3,093 | ) | (2,328 | ) | — | (734 | ) | |||||||||||
Unrealized losses included in other comprehensive income | (78 | ) | — | — | — | — | |||||||||||||
Additions | — | — | — | — | 819 | ||||||||||||||
Settlements | — | — | 715 | — | — | ||||||||||||||
Ending balance, June 30, 2018 | $ | 1,857 | $ | 12,678 | $ | (5,943 | ) | $ | (11,348 | ) | $ | 4,186 | |||||||
Total net losses for the period included in earnings attributable to the change in unrealized losses relating to assets/liabilities still held at June 30, 2018 | $ | — | $ | (3,093 | ) | $ | (2,328 | ) | $ | — | $ | (734 | ) | ||||||
Three Months Ended June 30, 2018 | |||||||||||||||||||
(in thousands) | Investment Securities Available for Sale | Private Equity Investments | Visa Derivative | Earnout Liability(1) | GGL / SBA Loans Servicing Asset | ||||||||||||||
Beginning balance, April 1, 2018 | $ | 1,852 | $ | 12,715 | $ | (3,974 | ) | $ | (11,348 | ) | $ | 3,971 | |||||||
Total (losses) gains realized/unrealized: | |||||||||||||||||||
Included in earnings | — | (37 | ) | (2,328 | ) | — | (312 | ) | |||||||||||
Unrealized gains included in other comprehensive income | 5 | — | — | — | — | ||||||||||||||
Additions | — | — | — | — | 527 | ||||||||||||||
Settlements | — | — | 359 | — | — | ||||||||||||||
Ending balance, June 30, 2018 | $ | 1,857 | $ | 12,678 | $ | (5,943 | ) | $ | (11,348 | ) | $ | 4,186 | |||||||
Total net losses for the period included in earnings attributable to the change in unrealized losses relating to assets/liabilities still held at June 30, 2018 | $ | — | $ | (37 | ) | $ | (2,328 | ) | $ | — | $ | (312 | ) | ||||||
Three Months Ended March 31, 2019 | |||||||||||||||||||
(in thousands) | Investment Securities Available for Sale | Private Equity Investments | GGL / SBA Loans Servicing Asset | Earnout Liability | Visa Derivative | ||||||||||||||
Beginning balance, January 1, 2019 | $ | 1,785 | $ | 11,028 | $ | 3,729 | $ | (14,353 | ) | $ | (1,673 | ) | |||||||
Total gains (losses) realized/unrealized: | |||||||||||||||||||
Included in earnings | — | 858 | (488 | ) | — | — | |||||||||||||
Unrealized gains (losses) included in OCI | 196 | — | — | — | — | ||||||||||||||
Additions | — | — | 206 | — | — | ||||||||||||||
Settlements | — | — | — | — | 307 | ||||||||||||||
Ending balance, March 31, 2019 | $ | 1,981 | $ | 11,886 | $ | 3,447 | $ | (14,353 | ) | $ | (1,366 | ) | |||||||
Total net gains for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets/liabilities still held at March 31, 2019 | $ | — | $ | 858 | $ | — | $ | — | $ | — | |||||||||
Three Months Ended March 31, 2018 | |||||||||||||||||||
(in thousands) | Investment Securities Available for Sale | Private Equity Investments | GGL / SBA Loans Servicing Asset | Earnout Liability | Visa Derivative | ||||||||||||||
Beginning balance, January 1, 2018 | $ | 1,935 | $ | 15,771 | $ | 4,101 | $ | (11,348 | ) | $ | (4,330 | ) | |||||||
Total (losses) gains realized/unrealized: | |||||||||||||||||||
Included in earnings | — | (3,056 | ) | (422 | ) | — | — | ||||||||||||
Unrealized gains (losses) included in OCI | (83 | ) | — | — | — | — | |||||||||||||
Additions | — | — | 292 | — | — | ||||||||||||||
Settlements | — | — | — | — | 356 | ||||||||||||||
Ending balance, March 31, 2018 | $ | 1,852 | $ | 12,715 | $ | 3,971 | $ | (11,348 | ) | $ | (3,974 | ) | |||||||
Total net losses for the period included in earnings attributable to the change in unrealized losses relating to assets/liabilities still held at March 31, 2018 | $ | — | $ | (3,056 | ) | $ | — | $ | — | $ | — | ||||||||
Six Months Ended June 30, 2017 | |||||||||||||||||||
(in thousands) | Investment Securities Available for Sale | Private Equity Investments | Visa Derivative | Earnout Liability(1) | GGL / SBA Loans Servicing Asset(2) | ||||||||||||||
Beginning balance, January 1, 2017 | $ | 1,796 | $ | 25,493 | $ | (5,768 | ) | $ | (14,000 | ) | $ | — | |||||||
Total (losses) gains realized/unrealized: | |||||||||||||||||||
Included in earnings | — | (3,166 | ) | — | (1,707 | ) | (694 | ) | |||||||||||
Unrealized gains (losses) included in other comprehensive income | 131 | — | — | — | |||||||||||||||
Additions | — | — | — | — | 539 | ||||||||||||||
Sales and settlements | — | (6,629 | ) | 715 | — | — | |||||||||||||
Transfer from amortization method to fair value | — | — | — | — | 4,452 | ||||||||||||||
Measurement period adjustments related to Global One acquisition | — | — | — | 1,766 | — | ||||||||||||||
Ending balance, June 30, 2017 | $ | 1,927 | $ | 15,698 | $ | (5,053 | ) | $ | (13,941 | ) | $ | 4,297 | |||||||
Total net losses for the period included in earnings attributable to the change in unrealized losses relating to assets/liabilities still held at June 30, 2017 | $ | — | $ | — | $ | — | $ | (1,707 | ) | $ | (694 | ) | |||||||
Three Months Ended June 30, 2017 | |||||||||||||||||||
(in thousands) | Investment Securities Available for Sale | Private Equity Investments | Visa Derivative | Earnout Liability(1) | GGL / SBA Loans Servicing Asset(2) | ||||||||||||||
Beginning balance, April 1, 2017 | $ | 1,851 | $ | 23,679 | $ | (5,412 | ) | $ | (11,421 | ) | $ | 4,178 | |||||||
Total (losses) gains realized/unrealized: | |||||||||||||||||||
Included in earnings | — | (1,352 | ) | — | (1,707 | ) | (376 | ) | |||||||||||
Unrealized gains included in other comprehensive income | 76 | — | — | — | — | ||||||||||||||
Additions | — | — | — | — | 495 | ||||||||||||||
Sales and settlements | — | (6,629 | ) | 359 | — | — | |||||||||||||
Measurement period adjustments related to Global One acquisition | — | — | — | (813 | ) | — | |||||||||||||
Ending balance, June 30, 2017 | $ | 1,927 | $ | 15,698 | $ | (5,053 | ) | $ | (13,941 | ) | $ | 4,297 | |||||||
Total net losses for the period included in earnings attributable to the change in unrealized losses relating to assets/liabilities still held at June 30, 2017 | $ | — | $ | — | $ | — | $ | (1,707 | ) | $ | (376 | ) | |||||||
June 30, 2018 | December 31, 2017 | |||||||||
Valuation Technique | Significant Unobservable Input | Level 3 Fair Value | Range or Weighted Average | Level 3 Fair Value | Range or Weighted Average | |||||
Assets and liabilities measured at fair value on a recurring basis | ||||||||||
Investment Securities Available for Sale - Other Investments: | ||||||||||
Trust preferred securities | Discounted cash flow analysis | Credit spread embedded in discount rate | $1,857 | 438 bps | $1,935 | 398 bps | ||||
Private equity investments | Individual analysis of each investee company | Multiple factors, including but not limited to, current operations, financial condition, cash flows, evaluation of business management and financial plans, and recently executed financing transactions related to the investee companies | 12,678 | N/A | 15,771 | N/A | ||||
GGL/SBA loans servicing asset | Discounted cash flow analysis | Discount rate Prepayment speeds | 4,186 | 13.40% 8.64% | 4,101 | 13.16% 7.50% | ||||
Earnout liability | Option pricing methods and Monte Carlo simulation | Financial projections of Global One | 11,348 | N/A | 11,348 | N/A | ||||
Visa derivative liability | Discounted cash flow analysis | Estimated timing of resolution of covered litigation, future cumulative deposits to the litigation escrow for settlement of the covered litigation, and estimated future monthly fees payable to the derivative counterparty | 5,943 | 1-3 years | 4,330 | 1-4 years | ||||
March 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Impaired loans(1) | $ | — | $ | — | $ | 1,578 | $ | 1,578 | $ | — | $ | — | $ | 21,742 | $ | 21,742 | |||||||||||||||
Other loans held for sale | — | — | — | — | — | — | 1,494 | 1,494 | |||||||||||||||||||||||
Other real estate | — | — | 159 | 159 | — | — | 3,827 | 3,827 | |||||||||||||||||||||||
Other assets held for sale | — | — | 517 | 517 | — | — | 1,104 | 1,104 | |||||||||||||||||||||||
June 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Impaired loans* | $ | — | $ | — | $ | 12,820 | $ | 12,820 | $ | — | $ | — | $ | 3,603 | $ | 3,603 | |||||||||||||||
Other loans held for sale | — | — | — | — | — | — | 10,197 | 10,197 | |||||||||||||||||||||||
Other real estate | — | — | — | — | — | — | 3,363 | 3,363 | |||||||||||||||||||||||
Other assets held for sale | — | — | 695 | 695 | — | — | 5,334 | 5,334 | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||
(in thousands) | 2019 | 2018 | |||||
Impaired loans(1) | $ | 2,625 | $ | 720 | |||
Other loans held for sale | — | 1,512 | |||||
Other real estate | 18 | 731 | |||||
Other assets held for sale | 96 | 107 | |||||
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Impaired loans* | $ | 7,548 | $ | 5,808 | $ | 6,828 | $ | 5,776 | |||||||
Other loans held for sale | — | 3,519 | — | — | |||||||||||
Other real estate | — | 518 | — | 280 | |||||||||||
Other assets held for sale | 499 | 238 | 499 | — | |||||||||||
June 30, 2018 | |||||||||||||||||||
(in thousands) | Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial assets | |||||||||||||||||||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 1,091,788 | $ | 1,091,788 | $ | 1,091,788 | $ | — | $ | — | |||||||||
Trading account assets | 21,551 | 21,551 | 906 | 20,645 | — | ||||||||||||||
Mortgage loans held for sale | 53,673 | 53,673 | — | 53,673 | — | ||||||||||||||
Other loans held for sale | 2,733 | 2,733 | — | — | 2,733 | ||||||||||||||
Investment securities available for sale | 3,929,962 | 3,929,962 | 120,633 | 3,807,472 | 1,857 | ||||||||||||||
Private equity investments | 12,678 | 12,678 | — | — | 12,678 | ||||||||||||||
Mutual funds | 3,124 | 3,124 | 3,124 | — | — | ||||||||||||||
Mutual funds held in rabbi trusts | 13,638 | 13,638 | 13,638 | — | — | ||||||||||||||
Loans, net | 24,882,331 | 24,732,689 | — | — | 24,732,689 | ||||||||||||||
GGL/SBA loans servicing asset | 4,186 | 4,186 | — | — | 4,186 | ||||||||||||||
Derivative assets | 11,336 | 11,336 | — | 11,336 | — | ||||||||||||||
Financial liabilities | |||||||||||||||||||
Trading account liabilities | 12,328 | 12,328 | — | 12,328 | — | ||||||||||||||
Non-interest bearing deposits | 7,630,491 | 7,630,491 | — | 7,630,491 | — | ||||||||||||||
Non-time interest bearing deposits | 13,958,048 | 13,958,048 | — | 13,958,048 | — | ||||||||||||||
Time deposits | 4,854,149 | 4,826,356 | — | 4,826,356 | — | ||||||||||||||
Total deposits | $ | 26,442,688 | $ | 26,414,895 | $ | — | $ | 26,414,895 | $ | — | |||||||||
Federal funds purchased, other short-term borrowings and other short-term liabilities | 207,580 | 207,580 | 207,580 | — | — | ||||||||||||||
Long-term debt | 1,656,647 | 1,658,790 | — | 1,658,790 | — | ||||||||||||||
Earnout liabilities | 11,348 | 11,348 | — | — | 11,348 | ||||||||||||||
Derivative liabilities | 25,494 | 25,494 | — | 19,551 | 5,943 | ||||||||||||||
December 31, 2017 | March 31, 2019 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||||||||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 932,933 | $ | 932,933 | $ | 932,933 | $ | — | $ | — | $ | 1,265,925 | $ | 1,265,925 | $ | 1,265,925 | $ | — | $ | — | ||||||||||||||||||
Trading account assets | 3,820 | 3,820 | 522 | 3,298 | — | |||||||||||||||||||||||||||||||||
Trading securities | 1,740 | 1,740 | 200 | 1,540 | — | |||||||||||||||||||||||||||||||||
Mortgage loans held for sale | 48,024 | 48,024 | — | 48,024 | — | 55,970 | 55,970 | — | 55,970 | — | ||||||||||||||||||||||||||||
Other loans for sale | 11,356 | 11,356 | — | — | 11,356 | |||||||||||||||||||||||||||||||||
Other loans held for sale | 12 | 12 | — | — | 12 | |||||||||||||||||||||||||||||||||
Investment securities available for sale | 3,987,069 | 3,987,069 | 85,836 | 3,899,298 | 1,935 | 6,808,191 | 6,808,191 | 19,584 | 6,786,626 | 1,981 | ||||||||||||||||||||||||||||
Private equity investments | 15,771 | 15,771 | — | — | 15,771 | 11,886 | 11,886 | — | — | 11,886 | ||||||||||||||||||||||||||||
Mutual funds | 16,147 | 16,147 | 16,147 | — | — | |||||||||||||||||||||||||||||||||
Mutual funds held in rabbi trusts | 14,140 | 14,140 | 14,140 | — | — | 12,579 | 12,579 | 12,579 | — | — | ||||||||||||||||||||||||||||
Loans, net | 24,538,196 | 24,507,141 | — | — | 24,507,141 | 35,377,465 | 35,086,637 | — | — | 35,086,637 | ||||||||||||||||||||||||||||
GGL/SBA loans servicing asset | 4,101 | 4,101 | — | — | 4,101 | 3,447 | 3,447 | — | — | 3,447 | ||||||||||||||||||||||||||||
Derivative assets | 11,722 | 11,722 | — | 11,722 | — | 75,751 | 75,751 | — | 75,751 | — | ||||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||||||||
Trading account liabilities | 1,000 | 1,000 | — | 1,000 | — | |||||||||||||||||||||||||||||||||
Non-interest bearing deposits | 7,686,339 | 7,686,339 | — | 7,686,339 | — | |||||||||||||||||||||||||||||||||
Non-time interest bearing deposits | 13,941,814 | 13,941,814 | — | 13,941,814 | — | |||||||||||||||||||||||||||||||||
Non-interest-bearing deposits | $ | 9,144,315 | $ | 9,144,315 | $ | — | $ | 9,144,315 | $ | — | ||||||||||||||||||||||||||||
Non-time interest-bearing deposits | 18,345,758 | 18,345,758 | — | 18,345,758 | — | |||||||||||||||||||||||||||||||||
Time deposits | 4,519,747 | 4,523,661 | — | 4,523,661 | — | 10,585,117 | 10,592,682 | — | 10,592,682 | — | ||||||||||||||||||||||||||||
Total deposits | $ | 26,147,900 | $ | 26,151,814 | $ | — | $ | 26,151,814 | $ | — | $ | 38,075,190 | $ | 38,082,755 | $ | — | $ | 38,082,755 | $ | — | ||||||||||||||||||
Federal funds purchased, other short-term borrowings and other short-term liabilities | 161,190 | 161,190 | 161,190 | — | — | |||||||||||||||||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 314,383 | 314,383 | 314,383 | — | — | |||||||||||||||||||||||||||||||||
Other short-term borrowings | 853,000 | 853,000 | — | 853,000 | — | |||||||||||||||||||||||||||||||||
Long-term debt | 1,706,138 | 1,721,814 | — | 1,721,814 | — | 2,106,037 | 2,119,630 | — | 2,119,630 | — | ||||||||||||||||||||||||||||
Earnout liabilities | 11,348 | 11,348 | — | — | 11,348 | |||||||||||||||||||||||||||||||||
Earnout liability | 14,353 | 14,353 | — | — | 14,353 | |||||||||||||||||||||||||||||||||
Derivative liabilities | 17,097 | 17,097 | — | 12,767 | 4,330 | 24,927 | 24,927 | — | 23,561 | 1,366 | ||||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||
(in thousands) | Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial assets | |||||||||||||||||||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 1,143,564 | $ | 1,143,564 | $ | 1,143,564 | $ | — | $ | — | |||||||||
Trading securities | 3,130 | 3,130 | 1,128 | 2,002 | — | ||||||||||||||
Mortgage loans held for sale | 37,129 | 37,129 | — | 37,129 | — | ||||||||||||||
Other loans for sale | 1,506 | 1,506 | — | — | 1,506 | ||||||||||||||
Investment securities available for sale | 3,991,632 | 3,991,632 | 122,077 | 3,867,770 | 1,785 | ||||||||||||||
Private equity investments | 11,028 | 11,028 | — | — | 11,028 | ||||||||||||||
Mutual funds | 3,168 | 3,168 | 3,168 | — | — | ||||||||||||||
Mutual funds held in rabbi trusts | 12,844 | 12,844 | 12,844 | — | — | ||||||||||||||
Loans, net | 25,696,018 | 25,438,890 | — | — | 25,438,890 | ||||||||||||||
GGL/SBA loans servicing asset | 3,729 | 3,729 | — | — | 3,729 | ||||||||||||||
Derivative assets | 19,332 | 19,332 | — | 19,332 | — | ||||||||||||||
Financial liabilities | |||||||||||||||||||
Non-interest-bearing deposits | $ | 7,650,967 | $ | 7,650,967 | $ | — | $ | 7,650,967 | $ | — | |||||||||
Non-time interest-bearing deposits | 14,065,959 | 14,065,959 | — | 14,065,959 | — | ||||||||||||||
Time deposits | 5,003,396 | 4,989,570 | — | 4,989,570 | — | ||||||||||||||
Total deposits | $ | 26,720,322 | $ | 26,706,496 | $ | — | $ | 26,706,496 | $ | — | |||||||||
Federal funds purchased and securities sold under repurchase agreements | 237,692 | 237,692 | 237,692 | — | — | ||||||||||||||
Other short-term borrowings | 650,000 | 650,000 | — | 650,000 | — | ||||||||||||||
Long-term debt | 1,657,157 | 1,649,642 | — | 1,649,642 | — | ||||||||||||||
Earnout liability | 14,353 | 14,353 | — | — | 14,353 | ||||||||||||||
Derivative liabilities | 18,208 | 18,208 | — | 16,535 | 1,673 | ||||||||||||||
March 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||
(in thousands) | Notional Amount | Derivative Assets (1) | Derivative Liabilities (2) | Notional Amount | Derivative Assets (1) | Derivative Liabilities (2) | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Interest rate contracts(3) | $ | 5,403,031 | $ | 74,114 | $ | 22,755 | $ | 1,840,288 | 18,388 | $ | 15,716 | ||||||||||||
Mortgage derivatives - interest rate lock commitments | 95,053 | 1,637 | — | 52,420 | 944 | — | |||||||||||||||||
Mortgage derivatives - forward commitments to sell fixed-rate mortgage loans | 93,500 | — | 806 | 65,500 | — | 819 | |||||||||||||||||
Visa derivative | — | — | 1,366 | — | — | 1,673 | |||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 75,751 | $ | 24,927 | $ | 19,332 | $ | 18,208 | |||||||||||||||
Fair Value of Derivative Assets | Fair Value of Derivative Liabilities | ||||||||||||||||||
(in thousands) | Location on Consolidated Balance Sheets | June 30, 2018 | December 31, 2017 | Location on Consolidated Balance Sheets | June 30, 2018 | December 31, 2017 | |||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Interest rate contracts | Other assets | $ | 10,034 | $ | 10,786 | Other liabilities | $ | 19,303 | $ | 12,638 | |||||||||
Mortgage derivatives | Other assets | 1,302 | 936 | Other liabilities | 248 | 129 | |||||||||||||
Visa derivative | — | — | Other liabilities | 5,943 | 4,330 | ||||||||||||||
Total derivatives not designated as hedging instruments | $ | 11,336 | $ | 11,722 | $ | 25,494 | $ | 17,097 | |||||||||||
Location of Gain (Loss) Recognized in Income | Gain (Loss) Recognized in Income | |||||||||
(in thousands) | Six Months Ended June 30, | |||||||||
Derivatives not designated as hedging instruments | 2018 | 2017 | ||||||||
Interest rate contracts(1) | Other non-interest income | $ | (9 | ) | $ | (1 | ) | |||
Mortgage derivatives(2) | Mortgage banking income | 247 | (2,073 | ) | ||||||
Total | $ | 238 | $ | (2,074 | ) | |||||
Location of Gain (Loss) Recognized in Income | Gain (Loss) Recognized in Income | |||||||||
(in thousands) | Three Months Ended June 30, | |||||||||
Derivatives not designated as hedging instruments | 2018 | 2017 | ||||||||
Interest rate contracts(1) | Other non-interest income | $ | (16 | ) | $ | — | ||||
Mortgage derivatives(2) | Mortgage banking income | (680 | ) | (289 | ) | |||||
Total | $ | (696 | ) | $ | (289 | ) | ||||
Gain (Loss) Recognized in Consolidated Statements of Income | ||||||||||
Three Months Ended March 31, | ||||||||||
(in thousands) | Location in Consolidated Statements of Income | 2019 | 2018 | |||||||
Derivatives not designated as hedging instruments: | ||||||||||
Interest rate contracts(1) | Other non-interest income | $ | (130 | ) | $ | 7 | ||||
Mortgage derivatives - interest rate lock commitments | Mortgage banking income | 693 | 735 | |||||||
Mortgage derivatives - forward commitments to sell fixed-rate mortgage loans | Mortgage banking income | 13 | 192 | |||||||
Total derivatives not designated as hedging instruments | $ | 576 | $ | 934 | ||||||
Three Months Ended March 31, | |||||||
(in thousands, except per share data) | 2019 | 2018 | |||||
Basic Net Income Per Common Share: | |||||||
Net income available to common shareholders | $ | 117,036 | $ | 100,607 | |||
Weighted average common shares outstanding | 160,927 | 118,666 | |||||
Net income per common share, basic | $ | 0.73 | $ | 0.85 | |||
Diluted Net Income Per Common Share: | |||||||
Net income available to common shareholders | $ | 117,036 | $ | 100,607 | |||
Weighted average common shares outstanding | 160,927 | 118,666 | |||||
Effect of dilutive outstanding equity-based awards, warrants, and earnout payments | 1,833 | 655 | |||||
Weighted average diluted common shares | 162,760 | 119,321 | |||||
Net income per common share, diluted | $ | 0.72 | $ | 0.84 | |||
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||
(in thousands, except per share data) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Basic Net Income Per Common Share: | |||||||||||||||
Net income available to common shareholders | $ | 209,229 | $ | 142,742 | $ | 108,622 | $ | 73,444 | |||||||
Weighted average common shares outstanding | 118,531 | 122,251 | 118,397 | 122,203 | |||||||||||
Net income per common share, basic | $ | 1.77 | $ | 1.17 | $ | 0.92 | $ | 0.60 | |||||||
Diluted Net Income Per Common Share: | |||||||||||||||
Net income available to common shareholders | $ | 209,229 | $ | 142,742 | $ | 108,622 | $ | 73,444 | |||||||
Weighted average common shares outstanding | 118,531 | 122,251 | 118,397 | 122,203 | |||||||||||
Potentially dilutive shares from outstanding equity-based awards and Earnout Payments | 698 | 792 | 742 | 824 | |||||||||||
Weighted average diluted common shares | 119,229 | 123,043 | 119,139 | 123,027 | |||||||||||
Net income per common share, diluted | $ | 1.75 | $ | 1.16 | $ | 0.91 | $ | 0.60 | |||||||
Stock Options | |||||||
(amounts in thousands, except per share amounts) | Quantity | Weighted-Average Exercise Price Per Share | |||||
Outstanding at January 1, 2019 | 640 | $ | 16.93 | ||||
Assumed | 3,230 | 23.22 | |||||
Exercised | (361 | ) | 19.36 | ||||
Outstanding at March 31, 2019 | 3,509 | $ | 22.47 | ||||
Restricted Share Units | Market Restricted Share Units | Performance Share Units | |||||||||||||||||||
(amounts in thousands, except per share amounts) | Quantity | Weighted-Average Grant Date Fair Value Per Share | Quantity | Weighted-Average Grant Date Fair Value Per Share | Quantity | Weighted-Average Grant Date Fair Value Per Share | |||||||||||||||
Non-vested at January 1, 2019 | 526 | $ | 41.18 | 144 | $ | 41.91 | 248 | $ | 38.29 | ||||||||||||
Granted | 438 | 36.60 | 151 | 36.53 | 140 | 37.34 | |||||||||||||||
Assumed | 136 | 31.99 | — | — | — | — | |||||||||||||||
Quantity change by TSR factor | — | — | (18 | ) | 38.11 | — | — | ||||||||||||||
Dividend equivalents granted | 3 | 36.60 | — | — | 8 | 37.34 | |||||||||||||||
Vested | (236 | ) | 37.09 | (55 | ) | 38.11 | (93 | ) | 26.35 | ||||||||||||
Forfeited | (6 | ) | 41.18 | — | — | — | — | ||||||||||||||
Non-vested at March 31, 2019 | 861 | $ | 38.50 | 222 | $ | 39.50 | 303 | $ | 41.50 | ||||||||||||
Three Months Ended March 31, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
Salaries and other personnel expense | $ | 6,312 | $ | 3,773 | ||||
Merger-related expense | 3,806 | — | ||||||
Other operating expenses | 126 | 182 | ||||||
Total share-based compensation expense included in non-interest expense | $ | 10,244 | $ | 3,955 | ||||
Leases | |||||
(in thousands) | Classification | March 31, 2019 | |||
Assets | |||||
Operating | Other Assets | $ | 378,903 | ||
Finance | Premises and Equipment, net(1) | 3,457 | |||
Total leased assets | $ | 382,360 | |||
Liabilities | |||||
Operating | Other Liabilities | 385,734 | |||
Finance | Other Liabilities | 3,229 | |||
Total lease liabilities | $ | 388,963 | |||
Non-interest Income by Line of Business | For the Six Months Ended June 30, 2018 | ||||||||||||||||||||||
(in thousands) | Total | Community Banking | Corporate Banking | Retail Banking | Financial Management Services | Other | |||||||||||||||||
Service charges on deposit accounts | $ | 39,938 | $ | 11,404 | $ | 985 | $ | 26,518 | $ | — | $ | 1,031 | |||||||||||
Fiduciary and asset management fees | 27,419 | — | — | — | 27,419 | — | |||||||||||||||||
Card fees | 21,032 | 420 | — | 20,612 | — | — | |||||||||||||||||
Brokerage revenue | 17,596 | — | — | — | 17,596 | — | |||||||||||||||||
Insurance revenue | 3,092 | — | — | — | 3,092 | — | |||||||||||||||||
Other fees | 1,588 | — | — | 1,033 | — | 555 | |||||||||||||||||
$ | 110,665 | $ | 11,824 | $ | 985 | $ | 48,163 | $ | 48,107 | $ | 1,586 | ||||||||||||
Other revenues(1) | 29,768 | 5,841 | 3,581 | 3,242 | 11,408 | 5,696 | |||||||||||||||||
Total non-interest income | $ | 140,433 | $ | 17,665 | $ | 4,566 | $ | 51,405 | $ | 59,515 | $ | 7,282 | |||||||||||
Lease Cost | |||||
(in thousands) | Classification | March 31, 2019 | |||
Operating lease cost, net(1) | Net occupancy and equipment expense | $ | 8,171 | ||
Finance lease cost | |||||
Amortization of leased assets | Net occupancy and equipment expense | 224 | |||
Interest on lease liabilities | Net occupancy and equipment expense | 20 | |||
Sublease income(2) | Net occupancy and equipment expense | (166 | ) | ||
Net lease cost | $ | 8,249 | |||
For the Six Months Ended June 30, 2017 | |||||||||||||||||||||||
(in thousands) | Total | Community Banking | Corporate Banking | Retail Banking | Financial Management Services | Other | |||||||||||||||||
Service charges on deposit accounts | $ | 40,370 | $ | 11,415 | $ | 887 | $ | 26,970 | $ | — | $ | 1,098 | |||||||||||
Fiduciary and asset management fees | 24,676 | — | — | — | 24,676 | — | |||||||||||||||||
Card fees | 19,885 | 437 | — | 19,448 | — | — | |||||||||||||||||
Brokerage revenue | 14,436 | — | — | — | 14,436 | — | |||||||||||||||||
Insurance revenue | 2,364 | — | — | — | 2,364 | — | |||||||||||||||||
Other fees | 1,590 | — | — | 1,060 | — | 530 | |||||||||||||||||
$ | 103,321 | $ | 11,852 | $ | 887 | $ | 47,478 | $ | 41,476 | $ | 1,628 | ||||||||||||
Other revenues(1) | 37,218 | 4,641 | 4,376 | 3,183 | 13,413 | 11,605 | |||||||||||||||||
Total non-interest income | $ | 140,539 | $ | 16,493 | $ | 5,263 | $ | 50,661 | $ | 54,889 | $ | 13,233 | |||||||||||
Non-interest Income by Line of Business | For the Three Months Ended June 30, 2018 | |||||||||||||||||||||
(in thousands) | Total | Community Banking | Corporate Banking | Retail Banking | Financial Management Services | Other | ||||||||||||||||
Service charges on deposit accounts | $ | 19,999 | $ | 5,724 | $ | 453 | $ | 13,096 | $ | — | $ | 726 | ||||||||||
Fiduciary and asset management fees | 13,983 | — | — | — | 13,983 | — | ||||||||||||||||
Card fees | 10,833 | 215 | — | 10,618 | — | — | ||||||||||||||||
Brokerage revenue | 8,900 | — | — | — | 8,900 | — | ||||||||||||||||
Insurance revenue | 1,879 | — | — | — | 1,879 | — | ||||||||||||||||
Other fees | 756 | — | — | 474 | — | 282 | ||||||||||||||||
$ | 56,350 | $ | 5,939 | $ | 453 | $ | 24,188 | $ | 24,762 | $ | 1,008 | |||||||||||
Other revenues(1) | 17,037 | 3,390 | 1,848 | 1,713 | 5,565 | 4,521 | ||||||||||||||||
Total non-interest income | $ | 73,387 | $ | 9,329 | $ | 2,301 | $ | 25,901 | $ | 30,327 | $ | 5,529 | ||||||||||
For the Three Months Ended June 30, 2017 | ||||||||||||||||||||||
(in thousands) | Total | Community Banking | Corporate Banking | Retail Banking | Financial Management Services | Other | ||||||||||||||||
Service charges on deposit accounts | $ | 20,252 | $ | 5,644 | $ | 428 | $ | 13,533 | $ | — | $ | 647 | ||||||||||
Fiduciary and asset management fees | 12,524 | — | — | — | 12,524 | — | ||||||||||||||||
Card fees | 10,041 | 218 | — | 9,823 | — | — | ||||||||||||||||
Brokerage revenue | 7,210 | — | — | — | 7,210 | — | ||||||||||||||||
Insurance revenue | 1,060 | — | — | — | 1,060 | — | ||||||||||||||||
Other fees | 748 | — | — | 486 | — | 262 | ||||||||||||||||
$ | 51,835 | $ | 5,862 | $ | 428 | $ | 23,842 | $ | 20,794 | $ | 909 | |||||||||||
Other revenues(1) | 16,866 | 2,993 | 2,758 | 1,618 | 6,816 | 2,681 | ||||||||||||||||
Total non-interest income | $ | 68,701 | $ | 8,855 | $ | 3,186 | $ | 25,460 | $ | 27,610 | $ | 3,590 | ||||||||||
Lease Term and Discount Rate | ||||
Weighted-average remaining lease term (years) | Weighted-average discount rate (percentage) | |||
Operating leases | 21.6 | 3.55 | % | |
Finance leases | 4.4 | 2.45 | ||
Other Information | |||
(in thousands) | Three Months Ended March 31, 2019 | ||
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | $ | (7,461 | ) |
Operating cash flows from finance leases | (20 | ) | |
Financing cash flows from finance leases | (178 | ) | |
Maturity of Lease Liabilities | |||||||||||
(in thousands) | Operating Leases | Finance Leases | Total | ||||||||
2019 | $ | 22,242 | $ | 692 | $ | 22,934 | |||||
2020 | 29,454 | 871 | 30,325 | ||||||||
2021 | 28,000 | 839 | 28,839 | ||||||||
2022 | 27,280 | 465 | 27,745 | ||||||||
2023 | 25,704 | 180 | 25,884 | ||||||||
After 2023 | 433,753 | 343 | 434,096 | ||||||||
Total lease payments | $ | 566,433 | $ | 3,390 | $ | 569,823 | |||||
Less: Imputed interest | 180,699 | 161 | 180,860 | ||||||||
Present value of lease liabilities | $ | 385,734 | $ | 3,229 | $ | 388,963 | |||||
(in thousands) | June 30, 2018 | December 31, 2017 | March 31, 2019 | December 31, 2018 | ||||||||||
Letters of credit* | $ | 179,860 | $ | 153,372 | $ | 212,696 | $ | 157,675 | ||||||
Commitments to fund commercial and industrial loans | 5,361,671 | 5,090,827 | 5,823,618 | 5,527,017 | ||||||||||
Commitments to fund commercial real estate, construction, and land development loans | 1,652,834 | 1,567,583 | 3,016,716 | 2,034,223 | ||||||||||
Commitments under home equity lines of credit | 1,179,074 | 1,137,714 | 1,396,313 | 1,258,657 | ||||||||||
Unused credit card lines | 743,376 | 779,254 | 833,990 | 775,003 | ||||||||||
Other loan commitments | 365,861 | 351,358 | 639,049 | 400,983 | ||||||||||
Total unfunded lending commitments and letters of credit | $ | 9,482,676 | $ | 9,080,108 | $ | 11,922,382 | $ | 10,153,558 | ||||||
Investments in low income housing tax credit partnerships: | |||||||
Carrying amount included in other assets | $ | 81,611 | $ | 83,736 | |||
Amount of future funding commitments included in carrying amount | 33,463 | 47,123 | |||||
Short-term construction loans and letter of credit commitments | 259 | 1,585 | |||||
Funded portion of short-term loans and letters of credit | 2,822 | 5,595 | |||||
(1) | the risk that competition in the financial services industry may adversely affect our future earnings and growth; |
(2) | the risk that we may not realize the expected benefits from our efficiency and growth initiatives, which could negatively impact our future profitability; |
(3) | that we may fail to realize all of the anticipated benefits of the Merger, or those benefits may take longer to realize than expected, and that we may encounter significant difficulties in integrating FCB; |
(4) | the risk that our current and future information technology system enhancements and operational initiatives may not be successfully implemented, which could negatively impact our operations; |
the risk that our enterprise risk management framework, our compliance program, or our corporate governance and supervisory oversight functions may not identify or address risks adequately, which may result in unexpected losses; |
the risk that our asset quality may deteriorate, our allowance for loan losses may prove to be inadequate or may be negatively affected by credit risk |
the risk that any future economic downturn could have a material adverse effect on our capital, financial condition, results of operations and future growth; |
(8) | our ability to attract and retain key employees; |
(9) | the risk that we may be required to make substantial expenditures to keep pace with regulatory initiatives and the rapid technological changes in the financial services market; |
(10) | risks related to our business relationships with, and reliance |
(11) | risks related to the ability of our operational framework to identify and manage risks associated with our business such as credit risk, compliance risk, reputational risk, and operational risk, including third-party vendors and other service |
(12) | our ability to identify and address cyber-security risks such as data security breaches, malware, "denial of service" attacks, |
(13) | the risk related to our implementation of new lines of business or new products and services; |
(14) | changes in interest rate environment, including changes to the federal funds rate, and competition in our primary market area may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; |
(15) | the impact of recent and proposed changes in governmental policy, laws and regulations, including proposed and recently enacted changes in the regulation and taxation of banks and financial institutions, or the interpretation or application thereof and the uncertainty of future implementation and enforcement of these regulations; |
(16) | the risk that we may be exposed to potential losses in the event of fraud and/or theft, or in the event that a |
(17) | the risk that we may not be able to identify suitable bank and non-bank acquisition |
(18) | the impact on our financial results, reputation, and business if we are unable to comply with all applicable federal and state regulations or other supervisory actions or directives and any necessary capital initiatives; |
(19) | changes in the cost and availability of funding due to changes in the deposit market and credit market; |
(20) | the risks that if economic conditions worsen or regulatory capital rules are modified, we may be required to undertake initiatives to improve our capital position; |
(21) | restrictions or limitations on access to funds from historical and alternative sources of liquidity could adversely affect our overall liquidity, which could restrict our ability to make payments on our obligations and our ability to support asset growth and sustain our operations and the operations of Synovus Bank; |
(22) | the risk that we could realize losses if we sell non-performing assets and the proceeds we receive are lower than the carrying value of such assets; |
(23) | our ability to receive dividends from our subsidiaries could affect our liquidity, including our ability to pay dividends or take other capital actions; |
risks related to regulatory approval to take certain actions, including any dividends on our common stock or Series D Preferred Stock, any repurchases of common stock or any issuance or redemption of any other regulatory capital instruments, as well as any applications in respect of expansionary initiatives; |
risks related to |
(26) | the risk that Federal Tax Reform could have an adverse impact on our business or our customers, including with respect to demand and pricing for our loan products; |
(27) | the costs and effects of litigation, investigations, inquiries or similar matters, or adverse facts and developments related thereto; |
risks related to the fluctuation in our stock price; |
the effects of any damages to our reputation resulting from developments related to any of the items identified above; |
(30) |
other factors and other information contained in this Report and in other reports and filings that we make with the SEC under the Exchange Act, including, without limitation, those found in "Part I - Item 1A. Risk Factors" of this Report. |
Ÿ | Discussion of Results of Operations - Reviews Synovus' financial performance, as well as selected balance sheet items, items from the statements of income, significant transactions, and certain key ratios that illustrate Synovus' performance. |
Ÿ | Credit Quality, Capital Resources and Liquidity - Discusses credit quality, market risk, capital resources, and liquidity, as well as performance trends. It also includes a discussion of liquidity policies, how Synovus obtains funding, and related performance. |
Ÿ | Additional Disclosures - Discusses additional important matters including critical accounting policies and non-GAAP financial measures used within this Report. |
Table 1 - Consolidated Financial Highlights | |||||||||||||||||||||||||||||||
Six Months Ended June 30, | Three Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | 2018 | 2017 | Change | 2018 | 2017 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||
Net interest income | $ | 558,861 | $ | 491,024 | 13.8 | % | $ | 284,577 | $ | 251,097 | 13.3 | % | $ | 397,175 | $ | 274,284 | 44.8 | % | |||||||||||||
Provision for loan losses | 24,566 | 18,934 | 29.7 | 11,790 | 10,260 | 14.9 | 23,569 | 12,776 | 84.5 | ||||||||||||||||||||||
Non-interest income | 140,433 | 140,539 | (0.1) | 73,387 | 68,701 | 6.8 | 79,378 | 67,046 | 18.4 | ||||||||||||||||||||||
Adjusted non-interest income(1) | 144,822 | 136,038 | 6.5 | 74,720 | 70,054 | 6.7 | 78,445 | 70,102 | 11.9 | ||||||||||||||||||||||
Total revenues (2) | 700,590 | 623,896 | 12.3 | 359,260 | 319,799 | 12.3 | |||||||||||||||||||||||||
Total revenues | 476,554 | 341,330 | 39.6 | ||||||||||||||||||||||||||||
Adjusted total revenues(1) | 476,250 | 344,502 | 38.2 | ||||||||||||||||||||||||||||
Non-interest expense | 399,234 | 389,133 | 2.6 | 204,057 | 191,747 | 6.4 | 292,410 | 195,179 | 49.8 | ||||||||||||||||||||||
Adjusted non-interest expense(1) | 400,561 | 382,048 | 4.8 | 202,734 | 191,442 | 5.9 | 242,653 | 198,120 | 22.5 | ||||||||||||||||||||||
Income before income taxes | 275,494 | 223,496 | 23.3 | 142,117 | 117,791 | 20.7 | 160,574 | 133,375 | 20.4 | ||||||||||||||||||||||
Net income | 214,348 | 147,861 | 45.0 | 111,181 | 76,003 | 46.3 | 120,186 | 103,166 | 16.5 | ||||||||||||||||||||||
Net income available to common shareholders | 209,229 | 142,742 | 46.6 | 108,622 | 73,444 | 47.9 | 117,036 | 100,607 | 16.3 | ||||||||||||||||||||||
Net income per common share, basic | 1.77 | 1.17 | 51.2 | 0.92 | 0.60 | 52.7 | 0.73 | 0.85 | (14.2 | ) | |||||||||||||||||||||
Net income per common share, diluted | 1.75 | 1.16 | 51.3 | 0.91 | 0.60 | 52.7 | 0.72 | 0.84 | (14.7 | ) | |||||||||||||||||||||
Adjusted net income per common share, diluted(1) | 1.78 | 1.17 | 52.1 | 0.92 | 0.61 | 52.6 | 0.98 | 0.86 | 15.1 | ||||||||||||||||||||||
Net interest margin(3) | 3.82 | % | 3.46 | % | 36 | bps | 3.86 | % | 3.51 | % | 35 | bps | |||||||||||||||||||
Net charge-off ratio(3) | 0.18 | 0.19 | (1 | ) | 0.29 | 0.26 | 3 | ||||||||||||||||||||||||
Return on average assets(3) | 1.38 | 0.98 | 40 | 1.42 | 1.00 | 42 | |||||||||||||||||||||||||
Adjusted return on average assets(1)(3) | 1.40 | 0.99 | 41 | 1.43 | 1.01 | 42 | |||||||||||||||||||||||||
Net interest margin(2) | 3.78 | % | 3.78 | % | — | ||||||||||||||||||||||||||
Net charge-off ratio(2) | 0.19 | 0.07 | 12 | ||||||||||||||||||||||||||||
Return on average assets(2) | 1.06 | 1.34 | (28 | ) | |||||||||||||||||||||||||||
Adjusted return on average assets(1)(2) | 1.45 | 1.36 | 9 | ||||||||||||||||||||||||||||
Efficiency ratio | 56.97 | 62.31 | (534 | ) | 56.78 | 59.90 | (312 | ) | 61.29 | 57.16 | 413 | ||||||||||||||||||||
Adjusted efficiency ratio(1) | 56.90 | 60.87 | (397 | ) | 56.41 | 59.56 | (315 | ) | |||||||||||||||||||||||
Adjusted tangible efficiency ratio(1) | 50.24 | 57.42 | (718 | ) | |||||||||||||||||||||||||||
June 30, 2018 | March 31, 2018 | Sequential Quarter Change | June 30, 2017 | Year-Over-Year Change | March 31, 2019 | December 31, 2018 | Sequential Quarter Change | March 31, 2018 | Year-Over-Year Change | |||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||
Loans, net of deferred fees and costs | $ | 25,134,056 | $ | 24,883,037 | $ | 251,019 | $ | 24,430,512 | $ | 703,544 | $ | 35,634,501 | $ | 25,946,573 | $ | 9,687,928 | $ | 24,883,037 | $ | 10,751,464 | ||||||||||||||||||
Total average loans | 24,946,307 | 24,852,399 | 93,908 | 24,350,004 | 596,303 | 35,320,014 | 25,626,249 | 9,693,765 | 24,852,399 | 10,467,615 | ||||||||||||||||||||||||||||
Total deposits | 26,442,688 | 26,253,507 | 189,181 | 25,218,816 | 1,223,872 | 38,075,190 | 26,720,322 | 11,354,868 | 26,253,507 | 11,821,683 | ||||||||||||||||||||||||||||
Total core deposits(1) | 35,366,186 | 25,172,292 | 10,193,894 | 24,246,930 | 11,119,256 | |||||||||||||||||||||||||||||||||
Total average deposits | 26,268,074 | 25,788,073 | 480,001 | 24,991,708 | 1,276,366 | 37,826,952 | 26,920,101 | 10,906,851 | 25,788,073 | 12,038,879 | ||||||||||||||||||||||||||||
Average core deposits (1) | 24,345,157 | 23,836,163 | 508,994 | 23,612,149 | 733,008 | |||||||||||||||||||||||||||||||||
Non-performing assets ratio | 0.50 | % | 0.53 | % | (3 | ) bps | 0.73 | % | (23 | ) bps | ||||||||||||||||||||||||||||
Non-performing loans ratio | 0.47 | 0.48 | (1 | ) | 0.65 | (18 | ) | |||||||||||||||||||||||||||||||
Non-performing assets ratio(3) | 0.44 | % | 0.44 | % | — | 0.53 | % | (9 | )bps | |||||||||||||||||||||||||||||
Non-performing loans ratio(3) | 0.40 | 0.41 | (1 | ) | 0.48 | (8 | ) | |||||||||||||||||||||||||||||||
Past due loans over 90 days | 0.01 | 0.02 | (1 | ) | 0.02 | (1 | ) | 0.01 | 0.01 | — | 0.02 | (1 | ) | |||||||||||||||||||||||||
Common equity Tier 1 capital (transitional) | $ | 2,838,616 | $ | 2,801,073 | $ | 37,543 | $ | 2,734,983 | $ | 103,633 | ||||||||||||||||||||||||||||
CET1 capital (transitional) | $ | 3,790,395 | $ | 2,897,997 | $ | 892,398 | $ | 2,814,494 | $ | 975,901 | ||||||||||||||||||||||||||||
Tier 1 capital | 3,156,805 | 2,924,109 | 232,696 | 2,829,340 | 327,465 | 3,985,535 | 3,090,416 | 895,119 | 2,924,109 | 1,061,426 | ||||||||||||||||||||||||||||
Total risk-based capital | 3,668,904 | 3,442,921 | 225,983 | 3,340,155 | 328,749 | 4,803,641 | 3,601,376 | 1,202,265 | 3,442,921 | 1,360,720 | ||||||||||||||||||||||||||||
Common equity Tier 1 capital ratio (transitional) | 10.12 | % | 10.09 | % | 3 | bps | 10.02 | % | 10 | bps | ||||||||||||||||||||||||||||
CET1 capital ratio (transitional) | 9.52 | % | 9.95 | % | (43 | )bps | 10.13 | % | (61 | )bps | ||||||||||||||||||||||||||||
Tier 1 capital ratio | 11.25 | 10.53 | 72 | 10.37 | 88 | 10.01 | 10.61 | (60 | ) | 10.53 | (52 | ) | ||||||||||||||||||||||||||
Total risk-based capital ratio | 13.08 | 12.40 | 68 | 12.24 | 84 | 12.06 | 12.37 | (31 | ) | 12.39 | (33 | ) | ||||||||||||||||||||||||||
Total shareholders’ equity to total assets ratio | 9.98 | 9.39 | 59 | 9.77 | 21 | 9.86 | 9.59 | 27 | 9.39 | 47 | ||||||||||||||||||||||||||||
Tangible common equity ratio(1) | 8.77 | 8.79 | (2 | ) | 9.15 | (38 | ) | 8.34 | 8.81 | (47 | ) | 8.79 | (45 | ) | ||||||||||||||||||||||||
Return on average common equity(2) | 15.39 | 14.62 | 77 | 10.34 | 505 | 10.98 | 14.25 | (327 | ) | 14.62 | (364 | ) | ||||||||||||||||||||||||||
Adjusted return on average common equity(1)(2) | 15.59 | 14.86 | 73 | 10.49 | 510 | 15.03 | 14.96 | 7 | 14.82 | 21 | ||||||||||||||||||||||||||||
Adjusted return on average tangible common equity(1)(2) | 15.97 | 15.23 | 74 | 10.75 | 522 | 17.52 | 15.36 | 216 | 15.23 | 229 | ||||||||||||||||||||||||||||
Table 2 - Loans by Portfolio Class | Table 2 - Loans by Portfolio Class | |||||||||||||||||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | Linked Quarter % Change | March 31, 2018 | Year/Year % Change | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | June 30, 2018 | December 31, 2017 | June 30, 2018 vs. December 31, 2017 % Change(1) | June 30, 2017 | June 30, 2018 vs. June 30, 2017 % Change | Total Loans | Total Originated Loans | Total Acquired(1) Loans | Total Loans | Total Loans | ||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 7,271,080 | $ | 7,179,487 | 2.6 | % | $ | 6,993,817 | 4.0 | % | $ | 9,547,816 | $ | 7,661,252 | $ | 1,886,564 | $ | 7,449,698 | 28.2 | % | $ | 7,191,531 | 32.8 | % | ||||||||||||||||||
Owner-occupied | 5,004,392 | 4,844,163 | 6.7 | 4,749,128 | 5.4 | 6,560,681 | 5,375,678 | 1,185,003 | 5,331,508 | 23.1 | 4,910,386 | 33.6 | ||||||||||||||||||||||||||||||
Total commercial and industrial | 12,275,472 | 12,023,650 | 4.2 | 11,742,945 | 4.5 | 16,108,497 | 13,036,930 | 3,071,567 | 12,781,206 | 26.0 | 12,101,917 | 33.1 | ||||||||||||||||||||||||||||||
Investment properties | 5,509,596 | 5,670,065 | (5.7 | ) | 6,035,664 | (8.7 | )% | 8,916,780 | 5,720,945 | 3,195,835 | 5,560,951 | 60.3 | 5,619,050 | 58.7 | ||||||||||||||||||||||||||||
1-4 family properties | 720,710 | 781,619 | (15.7 | ) | 836,826 | (13.9 | ) | 765,001 | 657,799 | 107,202 | 679,870 | 12.5 | 758,904 | 0.8 | ||||||||||||||||||||||||||||
Land and development | 413,865 | 483,604 | (29.1 | ) | 549,744 | (24.7 | ) | 580,591 | 343,187 | 237,404 | 323,670 | 79.4 | 457,773 | 26.8 | ||||||||||||||||||||||||||||
Total commercial real estate | 6,644,171 | 6,935,288 | (8.5 | ) | 7,422,234 | (10.5 | ) | 10,262,372 | 6,721,931 | 3,540,441 | 6,564,491 | 56.3 | 6,835,727 | 50.1 | ||||||||||||||||||||||||||||
Consumer mortgages | 5,390,821 | 3,044,207 | 2,346,614 | 2,934,235 | 83.7 | 2,663,371 | 102.4 | |||||||||||||||||||||||||||||||||||
Home equity lines | 1,453,855 | 1,514,227 | (8.0 | ) | 1,563,167 | (7.0 | ) | 1,606,227 | 1,540,726 | 65,501 | 1,515,796 | 6.0 | 1,472,471 | 9.1 | ||||||||||||||||||||||||||||
Consumer mortgages | 2,750,935 | 2,633,503 | 9.0 | 2,470,665 | 11.3 | |||||||||||||||||||||||||||||||||||||
Credit cards | 238,424 | 232,676 | 5.0 | 225,900 | 5.5 | 252,762 | 252,762 | — | 258,245 | (2.1 | ) | 226,713 | 11.5 | |||||||||||||||||||||||||||||
Other consumer loans | 1,793,916 | 1,473,451 | 43.9 | 1,031,639 | 73.9 | 2,037,477 | 2,023,693 | 13,784 | 1,916,743 | 6.3 | 1,606,799 | 26.8 | ||||||||||||||||||||||||||||||
Total consumer | 6,237,130 | 5,853,857 | 13.2 | 5,291,371 | 17.9 | 9,287,287 | 6,861,388 | 2,425,899 | 6,625,019 | 40.2 | 5,969,354 | 55.6 | ||||||||||||||||||||||||||||||
Deferred fees and costs, net | (23,655 | ) | (23,655 | ) | — | (24,143 | ) | (2.0 | ) | (23,961 | ) | (1.3 | ) | |||||||||||||||||||||||||||||
Total loans | 25,156,773 | 24,812,795 | 2.8 | 24,456,550 | 2.9 | $ | 35,634,501 | $ | 26,596,594 | $ | 9,037,907 | $ | 25,946,573 | 37.3 | % | $ | 24,883,037 | 43.2 | % | |||||||||||||||||||||||
Deferred fees and costs, net | (22,717 | ) | (25,331 | ) | (20.8 | ) | (26,038 | ) | (12.8 | ) | ||||||||||||||||||||||||||||||||
Total loans, net of deferred fees and costs | $ | 25,134,056 | $ | 24,787,464 | 2.8 | % | $ | 24,430,512 | 2.9 | % | ||||||||||||||||||||||||||||||||
Commercial and Industrial Loans by Industry | June 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||
Table 3 - Commercial and Industrial Loans by Industry | Table 3 - Commercial and Industrial Loans by Industry | |||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||
(dollars in thousands) | Amount | %(1) | Amount | %(1) | Amount | %(1) | Amount | %(1) | ||||||||||||||||||
Health care and social assistance | $ | 2,863,586 | 23.3 | % | $ | 2,764,907 | 23.0 | % | $ | 3,063,354 | 19.0 | % | $ | 3,044,132 | 23.8 | % | ||||||||||
Manufacturing | 1,015,076 | 8.3 | 930,751 | 7.7 | 1,267,347 | 7.9 | 1,077,460 | 8.4 | ||||||||||||||||||
Retail trade | 840,398 | 6.8 | 857,348 | 7.1 | 1,212,612 | 7.5 | 903,965 | 7.1 | ||||||||||||||||||
Finance and insurance | 1,139,324 | 7.1 | 906,955 | 7.1 | ||||||||||||||||||||||
Wholesale trade | 1,101,199 | 6.8 | 693,920 | 5.4 | ||||||||||||||||||||||
Other services | 912,576 | 5.7 | 793,948 | 6.2 | ||||||||||||||||||||||
Real estate and rental and leasing | 828,961 | 6.8 | 851,303 | 7.1 | 887,721 | 5.5 | 675,824 | 5.3 | ||||||||||||||||||
Finance and insurance | 782,753 | 6.4 | 780,279 | 6.5 | ||||||||||||||||||||||
Other services | 778,208 | 6.3 | 761,916 | 6.3 | ||||||||||||||||||||||
Accommodation and food services | 882,918 | 5.5 | 663,106 | 5.2 | ||||||||||||||||||||||
Professional, scientific, and technical services | 727,213 | 5.9 | 771,809 | 6.4 | 868,054 | 5.4 | 844,929 | 6.6 | ||||||||||||||||||
Wholesale trade | 687,157 | 5.6 | 675,741 | 5.6 | ||||||||||||||||||||||
Arts, entertainment and recreation | 849,283 | 5.3 | 234,310 | 1.8 | ||||||||||||||||||||||
Transportation and warehousing | 841,532 | 5.2 | 477,386 | 3.7 | ||||||||||||||||||||||
Construction | 684,516 | 4.2 | 615,903 | 4.8 | ||||||||||||||||||||||
Real estate other | 597,073 | 4.9 | 586,707 | 4.9 | 534,098 | 3.3 | 452,360 | 3.5 | ||||||||||||||||||
Accommodation and food services | 586,609 | 4.8 | 562,877 | 4.7 | ||||||||||||||||||||||
Construction | 536,779 | 4.4 | 500,091 | 4.2 | ||||||||||||||||||||||
Transportation and warehousing | 494,487 | 4.0 | 427,608 | 3.6 | ||||||||||||||||||||||
Other industries | 452,432 | 3.7 | 438,312 | 3.6 | 520,934 | 3.3 | 235,143 | 2.0 | ||||||||||||||||||
Agriculture, forestry, fishing, and hunting | 322,286 | 2.6 | 349,181 | 2.9 | 339,939 | 2.1 | 344,136 | 2.7 | ||||||||||||||||||
Educational services | 339,679 | 2.1 | 284,840 | 2.2 | ||||||||||||||||||||||
Administration, support, waste management, and remediation | 263,902 | 2.1 | 273,189 | 2.3 | 334,260 | 2.1 | 281,681 | 2.2 | ||||||||||||||||||
Educational services | 259,170 | 2.1 | 259,367 | 2.2 | ||||||||||||||||||||||
Information | 239,382 | 2.0 | 232,264 | 1.9 | 329,151 | 2.0 | 251,208 | 2.0 | ||||||||||||||||||
Total commercial and industrial loans | $ | 12,275,472 | 100.0 | % | $ | 12,023,650 | 100.0 | % | $ | 16,108,497 | 100.0 | % | $ | 12,781,206 | 100.0 | % | ||||||||||
Composition of Average Deposits | ||||||||||||||||||||||||||||
(dollars in thousands) | June 30, 2018 | %(1) | March 31, 2018 | %(1) | December 31, 2017 | %(1) | June 30, 2017 | %(1) | ||||||||||||||||||||
Non-interest bearing demand deposits | $ | 7,539,451 | 28.7 | % | $ | 7,391,696 | 28.7 | % | $ | 7,621,147 | 29.0 | % | $ | 7,298,845 | 29.2 | % | ||||||||||||
Interest bearing demand deposits | 5,001,825 | 19.0 | 5,032,000 | 19.5 | 4,976,239 | 18.9 | 4,837,053 | 19.4 | ||||||||||||||||||||
Money market accounts, excluding brokered deposits | 7,791,107 | 29.7 | 7,561,554 | 29.3 | 7,514,992 | 28.6 | 7,427,562 | 29.7 | ||||||||||||||||||||
Savings deposits | 829,800 | 3.2 | 811,588 | 3.1 | 804,853 | 3.0 | 805,019 | 3.2 | ||||||||||||||||||||
Time deposits, excluding brokered deposits | 3,182,974 | 12.1 | 3,039,325 | 11.8 | 3,170,445 | 12.1 | 3,243,670 | 13.0 | ||||||||||||||||||||
Brokered deposits | 1,922,917 | 7.3 | 1,951,910 | 7.6 | 2,198,333 | 8.4 | 1,379,559 | 5.5 | ||||||||||||||||||||
Total average deposits | $ | 26,268,074 | 100.0 | % | $ | 25,788,073 | 100.0 | % | $ | 26,286,009 | 100.0 | % | $ | 24,991,708 | 100.0 | % | ||||||||||||
Average core deposits (2) | $ | 24,345,157 | 92.7 | % | $ | 23,836,163 | 92.4 | % | $ | 24,087,676 | 91.6 | % | $ | 23,612,149 | 94.5 | % | ||||||||||||
Table 4 - Composition of Period-end Deposits | ||||||||||||||||||||
(dollars in thousands) | March 31, 2019 | %(1) | December 31, 2018 | %(1) | March 31, 2018 | %(1) | ||||||||||||||
Non-interest-bearing demand deposits | $ | 9,144,315 | 24.0 | % | $ | 7,650,967 | 28.6 | % | $ | 7,381,070 | 28.1 | % | ||||||||
Interest-bearing demand deposits | 6,507,460 | 17.1 | 4,756,239 | 17.8 | 5,104,004 | 19.4 | ||||||||||||||
Money market accounts, excluding brokered deposits | 10,122,853 | 26.6 | 8,143,975 | 30.5 | 7,865,144 | 30.0 | ||||||||||||||
Savings deposits | 909,403 | 2.4 | 817,385 | 3.1 | 833,571 | 3.2 | ||||||||||||||
Time deposits, excluding brokered deposits | 8,682,155 | 22.8 | 3,803,726 | 14.2 | 3,063,141 | 11.7 | ||||||||||||||
Brokered deposits | 2,709,004 | 7.1 | 1,548,030 | 5.8 | 2,006,577 | 7.6 | ||||||||||||||
Total deposits | $ | 38,075,190 | 100.0 | % | $ | 26,720,322 | 100.0 | % | $ | 26,253,507 | 100.0 | % | ||||||||
Total core deposits(2) | $ | 35,366,186 | 92.9 | % | $ | 25,172,292 | 94.2 | % | $ | 24,246,930 | 92.4 | % | ||||||||
Time deposits greater than $100,000 | $ | 8,318,082 | 21.8 | % | $ | 3,749,928 | 14.0 | % | $ | 3,695,809 | 14.1 | % | ||||||||
Brokered time deposits | $ | 1,902,962 | 5.0 | % | $ | 1,199,670 | 4.5 | % | $ | 1,779,049 | 6.8 | % | ||||||||
Non-interest income | Six Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||||||||||||
Table 5 - Non-interest income | |||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||
(in thousands) | 2018 | 2017 | % Change | 2018 | 2017 | % Change | 2019 | 2018 | % Change | ||||||||||||||||||||||
Service charges on deposit accounts | $ | 39,938 | $ | 40,370 | (1.1 | )% | $ | 19,999 | $ | 20,252 | (1.2 | )% | $ | 20,859 | $ | 19,940 | 4.6 | % | |||||||||||||
Fiduciary and asset management fees | 27,419 | 24,676 | 11.1 | 13,983 | 12,524 | 11.6 | 13,578 | 13,435 | 1.1 | ||||||||||||||||||||||
Card fees | 21,032 | 19,885 | 5.8 | 10,833 | 10,041 | 7.9 | 10,877 | 10,199 | 6.6 | ||||||||||||||||||||||
Brokerage revenue | 17,596 | 14,436 | 21.9 | 8,900 | 7,210 | 23.4 | 9,406 | 8,695 | 8.2 | ||||||||||||||||||||||
Mortgage banking income | 9,887 | 11,548 | (14.4 | ) | 4,839 | 5,784 | (16.3 | ) | 5,054 | 5,047 | 0.1 | ||||||||||||||||||||
Income from bank-owned life insurance | 7,949 | 6,328 | 25.6 | 3,733 | 3,272 | 14.1 | 5,290 | 4,217 | 25.4 | ||||||||||||||||||||||
Investment securities (losses) gains, net | (1,296 | ) | 7,667 | nm | (1,296 | ) | (1 | ) | nm | ||||||||||||||||||||||
Decrease in fair value of private equity investments, net | (3,093 | ) | (3,166 | ) | nm | (37 | ) | (1,352 | ) | nm | |||||||||||||||||||||
Other fee income | 9,877 | 11,033 | (10.5 | ) | 5,259 | 6,164 | (14.7 | ) | |||||||||||||||||||||||
Swap fee income | 4,778 | 690 | nm | ||||||||||||||||||||||||||||
Investment securities gains, net | 75 | — | nm | ||||||||||||||||||||||||||||
Increase (decrease) in fair value of private equity investments, net | 858 | (3,056 | ) | nm | |||||||||||||||||||||||||||
Other non-interest income | 11,124 | 7,762 | 43.3 | 7,174 | 4,807 | 49.2 | 8,603 | 7,879 | 9.2 | ||||||||||||||||||||||
Total non-interest income | $ | 140,433 | $ | 140,539 | (0.1 | )% | $ | 73,387 | $ | 68,701 | 6.8 | % | $ | 79,378 | $ | 67,046 | �� | 18.4 | % | ||||||||||||
Non-interest Expense | |||||||||||||||||||||||||||||||
Table 6 - Non-interest Expense | |||||||||||||||||||||||||||||||
Six Months Ended June 30, | Three Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||
(in thousands) | 2018 | 2017 | % Change | 2018 | 2017 | % Change | 2019 | 2018 | % Change | ||||||||||||||||||||||
Salaries and other personnel expense | $ | 225,583 | $ | 212,404 | 6.2 | % | $ | 111,863 | $ | 105,213 | 6.3 | % | $ | 139,427 | $ | 113,720 | 22.6 | % | |||||||||||||
Net occupancy and equipment expense | 64,134 | 59,264 | 8.2 | 32,654 | 29,933 | 9.1 | 38,394 | 31,480 | 22.0 | ||||||||||||||||||||||
Third-party processing expense | 29,012 | 26,223 | 10.6 | 15,067 | 13,620 | 10.6 | 17,758 | 13,945 | 27.3 | ||||||||||||||||||||||
FDIC insurance and other regulatory fees | 13,335 | 13,645 | (2.3 | ) | 6,543 | 6,875 | (4.8 | ) | 6,761 | 6,793 | (0.5 | ) | |||||||||||||||||||
Professional fees | 11,789 | 12,907 | (8.7 | ) | 6,284 | 7,551 | (16.8 | ) | 6,348 | 5,505 | 15.3 | ||||||||||||||||||||
Advertising expense | 10,312 | 11,258 | (8.4 | ) | 5,220 | 5,346 | (2.4 | ) | 5,123 | 5,092 | 0.6 | ||||||||||||||||||||
Valuation adjustment to Visa derivative | 2,328 | — | nm | 2,328 | — | nm | |||||||||||||||||||||||||
Foreclosed real estate expense, net | 749 | 3,582 | (79.1 | ) | (107 | ) | 1,448 | (107.4 | ) | ||||||||||||||||||||||
Earnout liability adjustment | — | 1,707 | nm | — | 1,707 | nm | |||||||||||||||||||||||||
Restructuring charges, net | (212 | ) | 6,524 | nm | 103 | 13 | nm | ||||||||||||||||||||||||
Amortization of intangibles | 3,392 | 292 | nm | ||||||||||||||||||||||||||||
Merger-related expense | 49,738 | — | nm | ||||||||||||||||||||||||||||
Other operating expenses | 42,204 | 41,619 | 1.4 | 24,102 | 20,041 | 20.3 | 25,469 | 18,352 | 38.8 | ||||||||||||||||||||||
Total non-interest expense | $ | 399,234 | $ | 389,133 | 2.6 | % | $ | 204,057 | $ | 191,747 | 6.4 | % | $ | 292,410 | $ | 195,179 | 49.8 | % | |||||||||||||
Credit Quality Metrics | ||||||||||||||||||||||
Table 7 - Credit Quality Metrics | ||||||||||||||||||||||
(dollars in thousands) | June 30, 2018 | December 31, 2017 | June 30, 2017 | March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||||||||||||||
Non-performing loans | $ | 117,328 | $ | 115,561 | $ | 159,317 | $ | 143,976 | $ | 106,733 | $ | 120,081 | ||||||||||
Impaired loans held for sale | 2,733 | 11,278 | 127 | 12 | 1,506 | 6,591 | ||||||||||||||||
Other real estate | 6,288 | 3,758 | 19,476 | 11,329 | 6,220 | 4,496 | ||||||||||||||||
Non-performing assets | $ | 126,349 | $ | 130,597 | $ | 178,920 | $ | 155,317 | $ | 114,459 | $ | 131,168 | ||||||||||
Total loans | $ | 35,634,501 | $ | 25,946,573 | $ | 24,883,037 | ||||||||||||||||
Non-performing loans as a % of total loans | 0.47 | % | 0.47 | 0.65 | 0.40 | % | 0.41 | % | 0.48 | % | ||||||||||||
Non-performing assets as a % of total loans, other loans held for sale, and ORE | 0.50 | 0.53 | 0.73 | 0.44 | 0.44 | 0.53 | ||||||||||||||||
Loans 90 days past due and still accruing | $ | 3,222 | 4,414 | 4,550 | $ | 4,486 | $ | 3,798 | $ | 5,416 | ||||||||||||
As a % of total loans | 0.01 | % | 0.02 | 0.02 | 0.01 | % | 0.01 | % | 0.02 | % | ||||||||||||
Total past due loans and still accruing | $ | 55,614 | 52,031 | 66,788 | $ | 88,135 | $ | 56,927 | $ | 54,150 | ||||||||||||
As a % of total loans | 0.22 | % | 0.21 | 0.27 | 0.25 | % | 0.22 | % | 0.22 | % | ||||||||||||
Net charge-offs, quarter | $ | 17,829 | 8,979 | 15,679 | $ | 17,088 | $ | 13,044 | $ | 4,280 | ||||||||||||
Net charge-offs/average loans, quarter | 0.29 | % | 0.15 | 0.26 | 0.19 | % | 0.20 | % | 0.07 | % | ||||||||||||
Net charge-offs, year-to-date | $ | 22,109 | 69,675 | 22,597 | $ | 17,088 | $ | 50,410 | $ | 4,280 | ||||||||||||
Net charge-offs/average loans, year-to-date | 0.18 | % | 0.29 | 0.19 | 0.19 | % | 0.20 | % | 0.07 | % | ||||||||||||
Provision for loan losses, quarter | $ | 11,790 | 8,564 | 10,260 | $ | 23,569 | $ | 12,148 | $ | 12,776 | ||||||||||||
Provision for loan losses, year-to-date | 24,566 | 67,185 | 18,934 | 23,569 | 51,697 | 12,776 | ||||||||||||||||
Allowance for loan losses | 251,725 | 249,268 | 248,095 | 257,036 | 250,555 | 257,764 | ||||||||||||||||
Allowance for loan losses as a % of total loans | 1.00 | % | 1.01 | 1.02 | 0.72 | % | 0.97 | % | 1.04 | % | ||||||||||||
Accruing TDRs by Risk Grade | June 30, 2018 | December 31, 2017 | June 30, 2017 | |||||||||||||||||
(dollars in thousands) | Amount | % | Amount | % | Amount | % | ||||||||||||||
Pass | $ | 57,013 | 45.5 | % | $ | 57,136 | 37.8 | % | $ | 69,943 | 41.8 | % | ||||||||
Special Mention | 19,799 | 15.8 | 15,879 | 10.5 | 20,550 | 12.3 | ||||||||||||||
Substandard accruing | 48,498 | 38.7 | 78,256 | 51.7 | 76,902 | 45.9 | ||||||||||||||
Total accruing TDRs | $ | 125,310 | 100.0 | % | $ | 151,271 | 100.0 | % | $ | 167,395 | 100.0 | % | ||||||||
Accruing TDRs Aging by Portfolio Class | ||||||||||||||||
June 30, 2018 | ||||||||||||||||
(in thousands) | Current | 30-89 Days Past Due | 90+ Days Past Due | Total | ||||||||||||
Commercial, financial and agricultural | $ | 11,302 | $ | 817 | $ | — | $ | 12,119 | ||||||||
Owner-occupied | 36,388 | 62 | — | 36,450 | ||||||||||||
Total commercial and industrial | 47,690 | 879 | — | 48,569 | ||||||||||||
Investment properties | 24,218 | — | — | 24,218 | ||||||||||||
1-4 family properties | 10,347 | 111 | — | 10,458 | ||||||||||||
Land and development | 15,281 | 589 | — | 15,870 | ||||||||||||
Total commercial real estate | 49,846 | 700 | — | 50,546 | ||||||||||||
Home equity lines | 1,312 | 1,108 | 333 | 2,753 | ||||||||||||
Consumer mortgages | 18,572 | 195 | — | 18,767 | ||||||||||||
Credit cards | — | — | — | — | ||||||||||||
Other consumer loans | 4,630 | 45 | — | 4,675 | ||||||||||||
Total consumer | 24,514 | 1,348 | 333 | 26,195 | ||||||||||||
Total accruing TDRs | $ | 122,050 | $ | 2,927 | $ | 333 | $ | 125,310 | ||||||||
December 31, 2017 | ||||||||||||||||
(in thousands) | Current | 30-89 Days Past Due | 90+ Days Past Due | Total | ||||||||||||
Commercial, financial and agricultural | $ | 33,789 | $ | 1,161 | $ | 44 | $ | 34,994 | ||||||||
Owner-occupied | 35,554 | — | — | 35,554 | ||||||||||||
Total commercial and industrial | 69,343 | 1,161 | 44 | 70,548 | ||||||||||||
Investment properties | 21,398 | — | — | 21,398 | ||||||||||||
1-4 family properties | 14,865 | 191 | — | 15,056 | ||||||||||||
Land and development | 14,835 | 381 | — | 15,216 | ||||||||||||
Total commercial real estate | 51,098 | 572 | — | 51,670 | ||||||||||||
Home equity lines | 5,096 | — | — | 5,096 | ||||||||||||
Consumer mortgages | 18,588 | 80 | — | 18,668 | ||||||||||||
Credit cards | — | — | — | — | ||||||||||||
Other consumer loans | 5,097 | 192 | — | 5,289 | ||||||||||||
Total consumer | 28,781 | 272 | — | 29,053 | ||||||||||||
Total accruing TDRs | $ | 149,222 | $ | 2,005 | $ | 44 | $ | 151,271 | ||||||||
Table 8 - Accruing TDRs by Risk Grade | ||||||||||||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||||||||||||||||
(dollars in thousands) | Amount | % | Amount | % | Amount | % | ||||||||||||||
Pass | $ | 54,999 | 49.0 | % | $ | 50,668 | 43.9 | % | $ | 56,924 | 44.0 | % | ||||||||
Special Mention | 13,188 | 11.8 | 14,480 | 12.5 | 15,429 | 11.9 | ||||||||||||||
Substandard accruing | 44,018 | 39.2 | 50,440 | 43.6 | 57,041 | 44.1 | ||||||||||||||
Total accruing TDRs | $ | 112,205 | 100.0 | % | $ | 115,588 | 100.0 | % | $ | 129,394 | 100.0 | % | ||||||||
Capital Ratios | ||||||||||||||
Table 9 - Capital Ratios | ||||||||||||||
(dollars in thousands) | June 30, 2018 | December 31, 2017 | March 31, 2019 | December 31, 2018 | ||||||||||
Common equity Tier 1 capital (transitional) | ||||||||||||||
CET1 capital (transitional) | ||||||||||||||
Synovus Financial Corp. | $ | 2,838,616 | $ | 2,763,168 | $ | 3,790,395 | $ | 2,897,997 | ||||||
Synovus Bank | 3,285,713 | 3,155,163 | 4,431,463 | 3,382,497 | ||||||||||
Tier 1 capital | ||||||||||||||
Tier 1 risk-based capital | ||||||||||||||
Synovus Financial Corp. | 3,156,805 | 2,872,001 | 3,985,535 | 3,090,416 | ||||||||||
Synovus Bank | 3,285,713 | 3,155,163 | 4,431,463 | 3,382,497 | ||||||||||
Total risk-based capital | ||||||||||||||
Synovus Financial Corp. | 3,668,904 | 3,383,081 | 4,803,641 | 3,601,376 | ||||||||||
Synovus Bank | 3,537,812 | 3,406,243 | 4,689,569 | 3,633,457 | ||||||||||
Common equity Tier 1 capital ratio (transitional) | ||||||||||||||
CET1 capital ratio (transitional) | ||||||||||||||
Synovus Financial Corp. | 10.12 | % | 9.99 | % | 9.52 | % | 9.95 | % | ||||||
Synovus Bank | 11.72 | 11.43 | 11.13 | 11.62 | ||||||||||
Tier 1 capital ratio | ||||||||||||||
Tier 1 risk-based capital ratio | ||||||||||||||
Synovus Financial Corp. | 11.25 | 10.38 | 10.01 | 10.61 | ||||||||||
Synovus Bank | 11.72 | 11.43 | 11.13 | 11.62 | ||||||||||
Total risk-based capital to risk-weighted assets ratio | ||||||||||||||
Synovus Financial Corp. | 13.08 | 12.23 | 12.06 | 12.37 | ||||||||||
Synovus Bank | 12.61 | 12.33 | 11.78 | 12.49 | ||||||||||
Leverage ratio | ||||||||||||||
Synovus Financial Corp. | 10.03 | 9.19 | 8.81 | 9.60 | ||||||||||
Synovus Bank | 10.45 | 10.12 | 9.80 | 10.51 | ||||||||||
Tangible common equity to tangible assets ratio (1) | ||||||||||||||
Synovus Financial Corp. | 8.77 | 8.79 | 8.34 | 8.81 | ||||||||||
Average Balances, Interest, and Yields | 2018 | 2017 | ||||||||||||||||||||||||||||
Table 10 - Average Balances and Yields/Rates | 2019 | 2018 | ||||||||||||||||||||||||||||
(dollars in thousands) (yields and rates annualized) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||||||||
Taxable investment securities (1) | $ | 4,077,564 | 4,097,162 | 3,937,278 | 3,786,436 | 3,844,688 | $ | 6,515,561 | 4,073,685 | 4,061,239 | 4,077,564 | 4,097,162 | ||||||||||||||||||
Yield | 2.34 | % | 2.34 | 2.29 | 2.11 | 2.11 | 3.05 | % | 2.45 | 2.38 | 2.34 | 2.34 | ||||||||||||||||||
Tax-exempt investment securities(1)(3) | $ | 115 | 140 | 180 | 259 | 340 | $ | 20,638 | — | 89 | 115 | 140 | ||||||||||||||||||
Yield (taxable equivalent) (3) | 6.87 | % | 6.57 | 7.97 | 7.86 | 6.87 | 4.45 | % | — | 5.91 | 6.87 | 6.57 | ||||||||||||||||||
Trading account assets(4) | $ | 23,772 | 8,167 | 7,360 | 7,823 | 3,667 | $ | 2,049 | 7,493 | 16,646 | 23,772 | 8,167 | ||||||||||||||||||
Yield | 2.79 | % | 2.66 | 2.78 | 2.09 | 2.28 | 1.30 | % | 1.90 | 2.52 | 2.79 | 2.66 | ||||||||||||||||||
Commercial loans(2)(3) | $ | 18,857,271 | 18,963,515 | 18,935,774 | 19,059,936 | 19,137,733 | $ | 26,140,672 | 19,150,252 | 19,025,830 | 18,857,271 | 18,963,515 | ||||||||||||||||||
Yield | 4.85 | % | 4.64 | 4.49 | 4.41 | 4.27 | 5.16 | % | 5.13 | 4.98 | 4.85 | 4.64 | ||||||||||||||||||
Consumer loans(2) | $ | 6,092,899 | 5,899,015 | 5,704,629 | 5,440,765 | 5,215,258 | $ | 9,180,679 | 6,476,026 | 6,298,643 | 6,092,899 | 5,899,015 | ||||||||||||||||||
Yield | 4.76 | % | 4.71 | 4.54 | 4.55 | 4.49 | 5.10 | % | 4.85 | 4.80 | 4.76 | 4.71 | ||||||||||||||||||
Allowance for loan losses | $ | (257,966 | ) | (251,635 | ) | (252,319 | ) | (249,248 | ) | (251,219 | ) | $ | (252,815 | ) | (251,098 | ) | (251,684 | ) | (257,966 | ) | (251,635 | ) | ||||||||
Loans, net (2) | $ | 24,692,204 | 24,610,895 | 24,388,084 | 24,251,453 | 24,101,772 | $ | 35,068,536 | 25,375,180 | 25,072,789 | 24,692,204 | 24,610,895 | ||||||||||||||||||
Yield | 4.88 | % | 4.70 | 4.55 | 4.49 | 4.36 | 5.17 | % | 5.11 | 4.99 | 4.88 | 4.70 | ||||||||||||||||||
Mortgage loans held for sale | $ | 50,366 | 38,360 | 45,353 | 52,177 | 52,224 | $ | 34,913 | 36,477 | 49,030 | 50,366 | 38,360 | ||||||||||||||||||
Yield | 4.42 | % | 3.95 | 3.96 | 3.88 | 3.87 | 4.48 | % | 4.79 | 4.71 | 4.42 | 3.95 | ||||||||||||||||||
Other earning assets (5) | $ | 724,537 | 516,575 | 922,296 | 543,556 | 561,503 | $ | 679,477 | 641,832 | 544,704 | 724,537 | 516,575 | ||||||||||||||||||
Yield | 1.77 | % | 1.48 | 1.31 | 1.23 | 1.00 | 2.45 | % | 2.20 | 1.90 | 1.77 | 1.48 | ||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock(4) | $ | 165,845 | 177,381 | 159,455 | 175,263 | 177,323 | $ | 211,408 | 162,369 | 163,568 | 165,845 | 177,381 | ||||||||||||||||||
Yield | 4.63 | % | 3.39 | 4.03 | 3.50 | 2.99 | 4.82 | % | 4.31 | 4.41 | 4.63 | 3.39 | ||||||||||||||||||
Total interest earning assets | $ | 29,734,403 | 29,448,680 | 29,460,006 | 28,816,967 | 28,741,517 | $ | 42,532,582 | 30,297,036 | 29,908,065 | 29,734,403 | 29,448,680 | ||||||||||||||||||
Yield | 4.47 | % | 4.31 | 4.15 | 4.11 | 3.99 | 4.80 | % | 4.69 | 4.58 | 4.47 | 4.31 | ||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||||||||
Interest bearing demand deposits | $ | 5,001,826 | 5,032,000 | 4,976,239 | 4,868,372 | 4,837,053 | ||||||||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 6,393,304 | 4,692,804 | 4,701,204 | 5,001,826 | 5,032,000 | ||||||||||||||||||||||||
Rate | 0.35 | % | 0.31 | 0.28 | 0.27 | 0.23 | 0.68 | % | 0.41 | 0.38 | 0.35 | 0.31 | ||||||||||||||||||
Money Market accounts, excluding brokered deposits | $ | 7,791,107 | 7,561,554 | 7,514,992 | 7,528,036 | 7,427,562 | $ | 10,244,556 | 8,050,732 | 7,936,621 | 7,791,107 | 7,561,554 | ||||||||||||||||||
Rate | 0.55 | % | 0.43 | 0.36 | 0.34 | 0.32 | 1.18 | % | 0.89 | 0.72 | 0.55 | 0.43 | ||||||||||||||||||
Savings deposits | $ | 829,800 | 811,587 | 804,853 | 803,184 | 805,019 | $ | 901,059 | 815,588 | 824,935 | 829,800 | 811,587 | ||||||||||||||||||
Rate | 0.03 | % | 0.03 | 0.03 | 0.03 | 0.04 | 0.06 | % | 0.04 | 0.03 | 0.03 | 0.03 | ||||||||||||||||||
Time deposits under $100,000 | $ | 1,161,890 | 1,143,780 | 1,166,413 | 1,183,582 | 1,202,746 | $ | 2,238,568 | 1,242,811 | 1,205,987 | 1,161,890 | 1,143,780 | ||||||||||||||||||
Rate | 0.82 | % | 0.71 | 0.70 | 0.68 | 0.67 | 1.24 | % | 1.16 | 0.99 | 0.82 | 0.71 | ||||||||||||||||||
Time deposits over $100,000 | $ | 2,021,084 | 1,895,545 | 2,004,031 | 2,067,347 | 2,040,924 | $ | 6,211,067 | 2,478,649 | 2,273,582 | 2,021,084 | 1,895,545 | ||||||||||||||||||
Rate | 1.22 | % | 1.02 | 0.99 | 0.97 | 0.94 | 1.60 | % | 1.67 | 1.46 | 1.22 | 1.02 | ||||||||||||||||||
Non-maturing brokered deposits | $ | 262,976 | 424,118 | 546,413 | 547,466 | 564,043 | $ | 937,629 | 349,480 | 358,277 | 262,976 | 424,118 | ||||||||||||||||||
Rate | 1.94 | % | 1.14 | 0.81 | 0.73 | 0.54 | 2.60 | % | 2.46 | 2.10 | 1.94 | 1.14 | ||||||||||||||||||
Brokered time deposits | $ | 1,659,941 | 1,527,793 | 1,651,920 | 983,423 | 815,515 | $ | 1,845,819 | 1,275,276 | 1,414,700 | 1,659,941 | 1,527,793 | ||||||||||||||||||
Rate | 1.85 | % | 1.75 | 1.63 | 1.16 | 0.94 | 2.13 | % | 2.03 | 1.94 | 1.85 | 1.75 | ||||||||||||||||||
Total interest bearing deposits | $ | 18,728,624 | 18,396,377 | 18,664,861 | 17,981,410 | 17,692,862 | ||||||||||||||||||||||||
Total interest-bearing deposits | $ | 28,772,002 | 18,905,340 | 18,715,306 | 18,728,624 | 18,396,377 | ||||||||||||||||||||||||
Rate | 0.70 | % | 0.58 | 0.54 | 0.46 | 0.41 | 1.24 | % | 0.96 | 0.83 | 0.70 | 0.58 | ||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | $ | 210,679 | 202,226 | 184,369 | 191,585 | 183,400 | $ | 233,076 | 194,370 | 230,504 | 207,655 | 202,226 | ||||||||||||||||||
Rate | 0.38 | % | 0.21 | 0.15 | 0.08 | 0.10 | 0.22 | % | 0.18 | 0.25 | 0.35 | 0.21 | ||||||||||||||||||
Other short-term borrowings | $ | 517,456 | 112,228 | 146,794 | 3,024 | 394,056 | ||||||||||||||||||||||||
Rate | 2.58 | % | 2.51 | 2.12 | 2.84 | 1.52 | ||||||||||||||||||||||||
Long-term debt | $ | 1,852,094 | 2,127,994 | 1,713,982 | 1,985,175 | 2,270,452 | $ | 1,983,910 | 1,657,022 | 1,656,743 | 1,852,094 | 1,733,938 | ||||||||||||||||||
Rate | 2.66 | % | 2.32 | 2.67 | 2.81 | 2.83 | 3.33 | % | 3.06 | 2.87 | 2.66 | 2.51 | ||||||||||||||||||
Total interest bearing liabilities | $ | 20,791,397 | 20,726,597 | 20,563,212 | 20,158,170 | 20,146,714 | ||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 31,506,444 | 20,868,960 | 20,749,347 | 20,791,397 | 20,726,597 | ||||||||||||||||||||||||
Rate | 0.87 | % | 0.76 | 0.72 | 0.69 | 0.68 | 1.38 | % | 1.12 | 0.99 | 0.87 | 0.76 | ||||||||||||||||||
Non-interest bearing demand deposits | $ | 7,539,451 | 7,391,695 | 7,621,147 | 7,305,508 | 7,298,845 | ||||||||||||||||||||||||
Effective cost of funds | 0.61 | % | 0.53 | 0.50 | 0.48 | 0.48 | ||||||||||||||||||||||||
Non-interest-bearing demand deposits | $ | 9,054,949 | 8,014,761 | 7,672,006 | 7,539,451 | 7,391,695 | ||||||||||||||||||||||||
Cost of funds | 1.07 | % | 0.81 | 0.73 | 0.64 | 0.56 | ||||||||||||||||||||||||
Effective cost of funds(6) | 1.02 | % | 0.77 | 0.69 | 0.61 | 0.53 | ||||||||||||||||||||||||
Net interest margin | 3.86 | % | 3.78 | 3.65 | 3.63 | 3.51 | 3.78 | % | 3.92 | 3.89 | 3.86 | 3.78 | ||||||||||||||||||
Taxable equivalent adjustment (3) | $ | 120 | 116 | 234 | 283 | 298 | $ | 630 | 181 | 136 | 120 | 116 | ||||||||||||||||||
(1) | Excludes net unrealized gains (losses). |
(3) | Reflects taxable-equivalent adjustments, using the statutory federal income tax rate of 21%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis. |
(4) | Included as a component of other assets on the consolidated balance sheets. |
(5) | Includes interest-bearing funds with Federal Reserve Bank, interest earning deposits with banks, and federal funds sold and securities purchased under resale agreements. |
Net Interest Income and Rate/Volume Analysis | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Table 11 - Net Interest Income and Rate/Volume Analysis | Table 11 - Net Interest Income and Rate/Volume Analysis | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | 2018 Compared to 2017 | Three Months Ended March 31, | 2019 Compared to 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balances | Interest | Annualized Yield/Rate | Change due to | Increase (Decrease) | Average Balances | Interest | Annualized Yield/Rate | Change due to | Increase (Decrease) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | Volume | Rate | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | Volume | Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxable investment securities | $ | 4,087,309 | $ | 3,843,131 | $ | 47,812 | $ | 40,069 | 2.34 | % | 2.09 | % | $ | 2,531 | $ | 5,212 | $ | 7,743 | $ | 6,515,561 | $ | 4,097,162 | $ | 49,756 | $ | 23,929 | 3.05 | % | 2.34 | % | $ | 13,954 | $ | 11,873 | $ | 25,827 | ||||||||||||||||||||||||||||||
Tax-exempt investment securities(2) | 128 | 1,528 | 4 | 45 | 6.71 | 5.95 | (41 | ) | — | (41 | ) | 20,638 | 140 | 230 | 2 | 4.45 | 6.57 | 332 | (104 | ) | 228 | |||||||||||||||||||||||||||||||||||||||||||||
Total investment securities | 4,087,437 | 3,844,659 | 47,816 | 40,114 | 2.34 | 2.09 | 2,490 | 5,212 | 7,702 | 6,536,199 | 4,097,302 | 49,986 | 23,931 | 3.06 | 2.34 | 14,286 | 11,769 | 26,055 | ||||||||||||||||||||||||||||||||||||||||||||||||
Trading account assets | 16,012 | 5,047 | 220 | 49 | 2.75 | 1.93 | 105 | 66 | 171 | 2,049 | 8,167 | 7 | 54 | 1.30 | 2.66 | (40 | ) | (7 | ) | (47 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Taxable loans, net(1) | 24,854,408 | 24,122,851 | 584,543 | 510,222 | 4.74 | 4.27 | 15,490 | 58,831 | 74,321 | 34,987,418 | 24,810,104 | 445,602 | 284,919 | 5.17 | 4.66 | 116,942 | 43,741 | 160,683 | ||||||||||||||||||||||||||||||||||||||||||||||||
Tax-exempt loans, net(1)(2) | 52,184 | 72,553 | 1,120 | 1,688 | 4.33 | 4.69 | (474 | ) | (94 | ) | (568 | ) | 333,933 | 52,426 | 2,770 | 552 | 3.36 | 4.27 | 2,964 | (746 | ) | 2,218 | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (254,818 | ) | (252,565 | ) | (252,815 | ) | (251,635 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, net | 24,651,774 | 23,942,839 | 585,663 | 511,910 | 4.79 | 4.31 | 15,016 | 58,737 | 73,753 | 35,068,536 | 24,610,895 | 448,372 | 285,471 | 5.17 | 4.70 | 119,906 | 42,995 | 162,901 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans held for sale | 44,396 | 49,405 | 936 | 972 | 4.22 | 3.93 | (98 | ) | 62 | (36 | ) | 34,913 | 38,360 | 391 | 379 | 4.48 | 3.95 | (34 | ) | 46 | 12 | |||||||||||||||||||||||||||||||||||||||||||||
Other earning assets(3) | 621,131 | 607,656 | 5,147 | 2,684 | 1.65 | 0.88 | 59 | 2,404 | 2,463 | 679,477 | 516,575 | 4,164 | 1,914 | 2.45 | 1.48 | 591 | 1,659 | 2,250 | ||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stock | 171,581 | 174,101 | 3,422 | 2,788 | 3.99 | 3.20 | (40 | ) | 674 | 634 | 211,408 | 177,381 | 2,549 | 1,501 | 4.82 | 3.39 | 285 | 763 | 1,048 | |||||||||||||||||||||||||||||||||||||||||||||||
Total interest earning assets | 29,592,331 | 28,623,707 | 643,204 | 558,517 | 4.39 | 3.93 | 17,532 | 67,155 | 84,687 | 42,532,582 | 29,448,680 | 505,469 | 313,250 | 4.80 | 4.31 | 134,994 | 57,225 | 192,219 | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 387,472 | 396,305 | 519,073 | 398,865 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and equipment, net | 427,291 | 414,810 | 479,200 | 426,902 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other real estate | 3,709 | 21,723 | 14,078 | 3,785 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash surrender value of bank-owned life insurance | 764,590 | 541,465 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets(4) | 964,141 | 1,080,397 | 1,485,098 | 426,011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 31,374,944 | $ | 30,536,942 | $ | 45,794,621 | $ | 31,245,708 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Shareholders' Equity | Liabilities and Shareholders' Equity | Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 5,016,830 | $ | 4,810,836 | $ | 8,151 | $ | 5,001 | 0.33 | % | 0.21 | % | $ | 215 | $ | 2,935 | $ | 3,150 | $ | 6,393,304 | $ | 5,032,000 | $ | 10,681 | $ | 3,814 | 0.68 | % | 0.31 | % | $ | 1,041 | $ | 5,826 | $ | 6,867 | ||||||||||||||||||||||||||||||
Money market accounts | 8,020,066 | 8,017,785 | 21,192 | 12,857 | 0.53 | 0.32 | 3 | 8,332 | 8,335 | 11,182,186 | 7,985,672 | 35,833 | 9,152 | 1.30 | 0.46 | 3,626 | 23,055 | 26,681 | ||||||||||||||||||||||||||||||||||||||||||||||||
Savings deposits | 820,744 | 857,050 | 118 | 329 | 0.03 | 0.08 | (14 | ) | (197 | ) | (211 | ) | 901,059 | 811,587 | 138 | 59 | 0.06 | 0.03 | 7 | 72 | 79 | |||||||||||||||||||||||||||||||||||||||||||||
Time deposits | 4,705,778 | 4,032,971 | 29,514 | 16,887 | 1.26 | 0.84 | 2,803 | 9,824 | 12,627 | 10,295,454 | 4,567,118 | 41,032 | 13,350 | 1.62 | 1.19 | 16,808 | 10,874 | 27,682 | ||||||||||||||||||||||||||||||||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 206,476 | 180,145 | 310 | 84 | 0.30 | 0.09 | 12 | 214 | 226 | 233,076 | 202,226 | 127 | 107 | 0.22 | 0.21 | 16 | 4 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other short-term borrowings | 517,456 | 394,056 | 3,336 | 1,494 | 2.58 | 1.52 | 463 | 1,379 | 1,842 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 1,989,282 | 2,227,501 | 24,822 | 31,728 | 2.48 | 2.83 | (3,343 | ) | (3,563 | ) | (6,906 | ) | 1,983,910 | 1,733,938 | 16,517 | 10,874 | 3.33 | 2.51 | 1,547 | 4,096 | 5,643 | |||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 20,759,176 | 20,126,288 | 84,107 | 66,886 | 0.81 | 0.67 | (324 | ) | 17,545 | 17,221 | 31,506,445 | 20,726,597 | 107,664 | 38,850 | 1.38 | 0.76 | 23,508 | 45,306 | 68,814 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | 7,465,982 | 7,236,840 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing deposits | 9,054,949 | 7,391,695 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 201,790 | 214,381 | 716,527 | 210,558 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' equity | 2,947,996 | 2,959,433 | 4,516,700 | 2,916,858 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 31,374,944 | $ | 30,536,942 | $ | 45,794,621 | $ | 31,245,708 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate spread: | 3.58 | % | 3.26 | % | 3.42 | % | 3.55 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income - FTE/margin(5) | $ | 559,097 | $ | 491,631 | 3.82 | % | 3.46 | % | $ | 17,856 | $ | 49,610 | $ | 67,466 | $ | 397,805 | $ | 274,400 | 3.78 | % | 3.78 | % | $ | 111,486 | $ | 11,919 | $ | 123,405 | ||||||||||||||||||||||||||||||||||||||
Taxable equivalent adjustment | 236 | 607 | 630 | 116 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income, actual | $ | 558,861 | $ | 491,024 | $ | 397,175 | $ | 274,284 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Table 12 - Twelve Month Net Interest Income Sensitivity(1) | |||||
Estimated % Change in Net Interest Income as Compared to Unchanged Rates (for the next twelve months) | |||||
Change in Short-term Interest Rates (in basis points) | March 31, 2019 | December 31, 2018 | |||
+200 | 2.2% | 3.4% | |||
+100 | 1.6% | 2.0% | |||
Flat | —% | —% | |||
-100 | (1.8)% | (2.0)% | |||
-200 | (4.5)% | N/A | |||
Estimated % Change in Net Interest Income as Compared to Unchanged Rates (for the next twelve months) | |||||
Change in Short-term Interest Rates (in basis points) | June 30, 2018 | December 31, 2017 | |||
+200 | 3.0% | 3.6% | |||
+100 | 1.4% | 1.9% | |||
Flat | —% | —% | |||
-100 | -3.7% | -4.7% | |||
As of June 30, 2018 | ||||
Change in Short-term Interest Rates (in basis points) | Base Scenario | 15% Increase in Average Repricing Beta | ||
+200 | 3.0% | 1.4% | ||
+100 | 1.4% | 0.7% | ||
Table 13 - Economic Value of Sensitivity(1) | ||||
Estimated Change in EVE | ||||
Immediate Change in Interest Rates (in basis points) | March 31, 2019 | December 31, 2018 | ||
+200 | (9.3)% | 0.7% | ||
+100 | (3.9)% | 1.3% | ||
-100 | (7.3)% | (13.9)% | ||
-200 | (20.0)% | N/A | ||
Estimated Change in EVE | ||||
Immediate Change in Interest Rates (in basis points) | June 30, 2018 | December 31, 2017 | ||
+200 | 1.5% | -0.2% | ||
+100 | 1.6% | 1.6% | ||
-100 | -14.7% | -16.9% | ||
Reconciliation of Non-GAAP Financial Measures | Six Months Ended | Three Months Ended | |||||||||||||
(in thousands, except per share data) | June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | |||||||||||
Adjusted non-interest income | |||||||||||||||
Total non-interest income | $ | 140,433 | $ | 140,539 | $ | 73,387 | $ | 68,701 | |||||||
Add/subtract: Investment securities losses (gains), net | 1,296 | (7,667 | ) | 1,296 | 1 | ||||||||||
Add: Decrease in fair value of private equity investments, net | 3,093 | 3,166 | 37 | 1,352 | |||||||||||
Adjusted non-interest income | $ | 144,822 | $ | 136,038 | $ | 74,720 | $ | 70,054 | |||||||
Adjusted non-interest expense | |||||||||||||||
Total non-interest expense | $ | 399,234 | $ | 389,133 | $ | 204,057 | $ | 191,747 | |||||||
Subtract: Merger-related expense | — | (86 | ) | — | — | ||||||||||
Add: Litigation settlement/contingency expense | 4,026 | — | 1,400 | — | |||||||||||
Add/subtract: Restructuring charges, net | 212 | (6,524 | ) | (103 | ) | (13 | ) | ||||||||
Subtract: Amortization of intangibles | (583 | ) | (475 | ) | (292 | ) | (292 | ) | |||||||
Subtract: Valuation adjustment to Visa derivative | (2,328 | ) | — | (2,328 | ) | — | |||||||||
Adjusted non-interest expense | $ | 400,561 | $ | 382,048 | $ | 202,734 | $ | 191,442 | |||||||
Table 14 - Reconciliation of Non-GAAP Financial Measures | |||||||
Three Months Ended | |||||||
(dollars in thousands) | March 31, 2019 | March 31, 2018 | |||||
Adjusted non-interest income | |||||||
Total non-interest income | $ | 79,378 | $ | 67,046 | |||
Subtract: Investment securities gains, net | (75 | ) | — | ||||
Subtract/add: (Increase) decrease in fair value of private equity investments, net | (858 | ) | 3,056 | ||||
Adjusted non-interest income | $ | 78,445 | $ | 70,102 | |||
Adjusted non-interest expense | |||||||
Total non-interest expense | $ | 292,410 | $ | 195,179 | |||
Subtract: Merger-related expense | (49,738 | ) | — | ||||
Add: Litigation settlement/contingency expense | — | 2,626 | |||||
Subtract/add: Restructuring charges, net | (19 | ) | 315 | ||||
Adjusted non-interest expense | $ | 242,653 | $ | 198,120 | |||
Reconciliation of Non-GAAP Financial Measures, continued | Six Months Ended | Three Months Ended | |||||||||||||
(in thousands, except per share data) | June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | |||||||||||
Adjusted efficiency ratio | |||||||||||||||
Adjusted non-interest expense | $ | 400,561 | $ | 382,048 | $ | 202,734 | $ | 191,442 | |||||||
Net interest income | 558,861 | 491,024 | 284,577 | 251,097 | |||||||||||
Add: Tax equivalent adjustment | 236 | 607 | 120 | 298 | |||||||||||
Add: Total non-interest income | 140,433 | 140,539 | 73,387 | 68,701 | |||||||||||
Add/subtract: Investment securities losses (gains), net | 1,296 | (7,667 | ) | 1,296 | 1 | ||||||||||
Total FTE revenues | $ | 700,826 | $ | 624,503 | $ | 359,380 | $ | 320,097 | |||||||
Add: Decrease in fair value of private equity investments, net | 3,093 | 3,166 | 37 | 1,352 | |||||||||||
Adjusted total revenues | $ | 703,919 | $ | 627,669 | $ | 359,417 | $ | 321,449 | |||||||
Efficiency ratio | 56.97 | % | 62.31 | % | 56.78 | % | 59.90 | % | |||||||
Adjusted efficiency ratio | 56.90 | 60.87 | 56.41 | 59.56 | |||||||||||
Adjusted net income per common share, diluted | |||||||||||||||
Net income available to common shareholders | $ | 209,229 | $ | 142,742 | $ | 108,622 | $ | 73,444 | |||||||
Add/subtract: Income tax expense related to effects of State Tax Reform | 717 | — | (608 | ) | — | ||||||||||
Add: Merger-related expense | — | 86 | — | — | |||||||||||
Subtract: Litigation settlement/contingency expense | (4,026 | ) | — | (1,400 | ) | — | |||||||||
Subtract/add: Restructuring charges, net | (212 | ) | 6,524 | 103 | 13 | ||||||||||
Add: Amortization of intangibles | 583 | 475 | 292 | 292 | |||||||||||
Add: Valuation adjustment to Visa derivative | 2,328 | — | 2,328 | — | |||||||||||
Add/subtract: Investment securities losses (gains), net | 1,296 | (7,667 | ) | 1,296 | 1 | ||||||||||
Add: Decrease in fair value of private equity investments, net | 3,093 | 3,166 | 37 | 1,352 | |||||||||||
Subtract: Tax effect of adjustments | (719 | ) | (963 | ) | (624 | ) | (613 | ) | |||||||
Adjusted net income available to common shareholders | $ | 212,289 | $ | 144,363 | $ | 110,046 | $ | 74,489 | |||||||
Weighted average common shares outstanding, diluted | 119,229 | 123,304 | 119,139 | 123,027 | |||||||||||
Adjusted net income per common share, diluted | $ | 1.78 | $ | 1.17 | $ | 0.92 | $ | 0.61 | |||||||
Adjusted return on average assets (annualized) | |||||||||||||||
Net income | $ | 214,348 | $ | 147,861 | $ | 111,181 | $ | 76,003 | |||||||
Add/subtract: Income tax expense related to effects of State Tax Reform | 717 | — | (608 | ) | — | ||||||||||
Add: Merger-related expense | — | 86 | — | — | |||||||||||
Add: Litigation settlement/contingency expense | (4,026 | ) | — | (1,400 | ) | — | |||||||||
Subtract/add: Restructuring charges, net | (212 | ) | 6,524 | 103 | 13 | ||||||||||
Add: Amortization of intangibles | 583 | 475 | 292 | 292 | |||||||||||
Add: Valuation adjustment to Visa derivative | 2,328 | — | 2,328 | — | |||||||||||
Add/subtract: Investment securities losses (gains), net | 1,296 | (7,667 | ) | 1,296 | 1 | ||||||||||
Add: Decrease in fair value of private equity investments, net | 3,093 | 3,166 | 37 | 1,352 | |||||||||||
Subtract: Tax effect of adjustments | (719 | ) | (963 | ) | (624 | ) | (613 | ) | |||||||
Adjusted net income | $ | 217,408 | $ | 149,482 | $ | 112,605 | $ | 77,048 | |||||||
Net income annualized | $ | 432,249 | $ | 298,173 | $ | 445,946 | $ | 304,847 | |||||||
Adjusted net income annualized | $ | 438,419 | $ | 301,442 | $ | 451,657 | $ | 309,039 | |||||||
Total average assets | $ | 31,374,944 | $ | 30,536,942 | $ | 31,502,758 | $ | 30,630,748 | |||||||
Return on average assets | 1.38 | % | 0.98 | % | 1.42 | % | 1.00 | % | |||||||
Adjusted return on average assets (annualized) | 1.40 | 0.99 | 1.43 | 1.01 | |||||||||||
Table 14 - Reconciliation of Non-GAAP Financial Measures, continued | |||||||
Three Months Ended | |||||||
(in thousands, except per share data) | March 31, 2019 | March 31, 2018 | |||||
Adjusted total revenues and adjusted tangible efficiency ratio | |||||||
Adjusted non-interest expense | $ | 242,653 | $ | 198,120 | |||
Subtract: Amortization of intangibles | (3,392 | ) | (292 | ) | |||
Adjusted tangible non-interest expense | $ | 239,261 | $ | 197,828 | |||
Net interest income | $ | 397,175 | $ | 274,284 | |||
Add: Tax equivalent adjustment | 630 | 116 | |||||
Add: Total non-interest income | 79,378 | 67,046 | |||||
Subtract: Investment securities gains, net | (75 | ) | — | ||||
Total FTE revenues | $ | 477,108 | $ | 341,446 | |||
Subtract/add: (Increase) decrease in fair value of private equity investments, net | (858 | ) | 3,056 | ||||
Adjusted total revenues | $ | 476,250 | $ | 344,502 | |||
Efficiency ratio | 61.29 | % | 57.16 | % | |||
Adjusted tangible efficiency ratio | 50.24 | 57.42 | |||||
Adjusted net income per common share, diluted | |||||||
Net income available to common shareholders | $ | 117,036 | $ | 100,607 | |||
Add: Income tax expense, net related to State Tax Reform | — | 1,325 | |||||
Add: Merger-related expense | 49,738 | — | |||||
Subtract: Litigation settlement/contingency expense | — | (2,626 | ) | ||||
Add/subtract: Restructuring charges, net | 19 | (315 | ) | ||||
Subtract: Investment securities gains, net | (75 | ) | — | ||||
Subtract/add: (Increase) decrease in fair value of private equity investments, net | (858 | ) | 3,056 | ||||
Subtract: Tax effect of adjustments | (5,705 | ) | (27 | ) | |||
Adjusted net income available to common shareholders | $ | 160,155 | $ | 102,020 | |||
Weighted average common shares outstanding, diluted | 162,760 | 119,321 | |||||
Adjusted net income per common share, diluted | $ | 0.98 | $ | 0.86 | |||
Reconciliation of Non-GAAP Financial Measures, continued | Three Months Ended | ||||||||||
(dollars in thousands) | June 30, 2018 | March 31, 2018 | June 30, 2017 | ||||||||
Adjusted return on average common equity and adjusted return on average tangible common equity (annualized) | |||||||||||
Net income available to common shareholders | $ | 108,622 | $ | 100,607 | $ | 73,444 | |||||
Subtract/add: Income Tax expense related to effects of State Tax Reform | (608 | ) | 1,325 | — | |||||||
Subtract: Litigation settlement/contingency expense | (1,400 | ) | (2,626 | ) | — | ||||||
Add/subtract: Restructuring charges, net | 103 | (315 | ) | 13 | |||||||
Add: Amortization of intangibles | 292 | 292 | 292 | ||||||||
Add: Valuation adjustment to Visa derivative | 2,328 | — | — | ||||||||
Add: Investment securities losses, net | 1,296 | — | 1 | ||||||||
Add: Decrease in fair value of private equity investments, net | 37 | 3,056 | 1,352 | ||||||||
Subtract: Tax effect of adjustments | (624 | ) | (96 | ) | (613 | ) | |||||
Adjusted net income available to common shareholders | $ | 110,046 | $ | 102,243 | $ | 74,489 | |||||
Net income annualized | $ | 441,393 | $ | 414,652 | $ | 298,775 | |||||
Total average shareholders' equity less preferred stock | $ | 2,831,368 | $ | 2,790,648 | $ | 2,849,069 | |||||
Subtract: Goodwill | (57,315 | ) | (57,315 | ) | (57,018 | ) | |||||
Subtract: Other intangible assets, net | (10,555 | ) | (10,915 | ) | (11,966 | ) | |||||
Total average tangible shareholders' equity less preferred stock | $ | 2,763,498 | $ | 2,722,418 | $ | 2,780,085 | |||||
Return on average common equity (annualized) | 15.39 | % | 14.62 | % | 10.34 | % | |||||
Adjusted return on average common equity (annualized) | 15.59 | 14.86 | 10.49 | ||||||||
Adjusted return on average tangible common equity (annualized) | 15.97 | 15.23 | 10.75 | ||||||||
Table 14 - Reconciliation of Non-GAAP Financial Measures, continued | |||||||
Three Months Ended | |||||||
(dollars in thousands) | March 31, 2019 | March 31, 2018 | |||||
Adjusted return on average assets (annualized) | |||||||
Net income | $ | 120,186 | $ | 103,166 | |||
Add: Income tax expense, net related to State Tax Reform | — | 1,325 | |||||
Add: Merger-related expense | 49,738 | — | |||||
Subtract: Litigation settlement/contingency expense | — | (2,626 | ) | ||||
Add/subtract: Restructuring charges, net | 19 | (315 | ) | ||||
Subtract: Investment securities gains, net | (75 | ) | — | ||||
Subtract/add: (Increase) decrease in fair value of private equity investments, net | (858 | ) | 3,056 | ||||
Subtract: Tax effect of adjustments | (5,705 | ) | (27 | ) | |||
Adjusted net income | $ | 163,305 | $ | 104,579 | |||
Net income annualized | 487,421 | 418,395 | |||||
Adjusted net income annualized | 662,293 | 424,126 | |||||
Total average assets | 45,794,621 | 31,245,708 | |||||
Return on average assets | 1.06 | % | 1.34 | % | |||
Adjusted return on average assets (annualized) | 1.45 | 1.36 | |||||
Three Months Ended | |||||||||||
(dollars in thousands) | March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||||||
Adjusted return on average common equity and adjusted return on average tangible common equity (annualized) | |||||||||||
Net income available to common shareholders | $ | 117,036 | $ | 101,919 | $ | 100,607 | |||||
Add: Income tax expense, net related to State Tax Reform | — | — | 1,325 | ||||||||
Add: Merger-related expense | 49,738 | 3,381 | — | ||||||||
Subtract: Litigation settlement/contingency expense | — | — | (2,626 | ) | |||||||
Add/subtract: Restructuring charges, net | 19 | 140 | (315 | ) | |||||||
Subtract: Investment securities gains, net | (75 | ) | — | — | |||||||
Subtract/add: (Increase) decrease in fair value of private equity investments, net | (858 | ) | 2,084 | 3,056 | |||||||
Subtract: Tax effect of adjustments | (5,705 | ) | (522 | ) | (27 | ) | |||||
Net income available to common shareholders | $ | 160,155 | $ | 107,002 | $ | 102,020 | |||||
Adjusted net income available to common shareholders' annualized | $ | 649,518 | $ | 424,519 | $ | 413,747 | |||||
Add: Amortization of intangibles | 10,317 | 886 | 906 | ||||||||
Adjusted net income available to common shareholders excluding amortization of intangibles annualized | $ | 659,835 | $ | 425,405 | $ | 414,653 | |||||
Total average shareholders' equity less preferred stock | $ | 4,321,561 | $ | 2,837,740 | $ | 2,790,878 | |||||
Subtract: Goodwill | (480,215 | ) | (57,315 | ) | (57,315 | ) | |||||
Subtract: Other intangible assets, net | (75,191 | ) | (9,972 | ) | (10,915 | ) | |||||
Total average tangible shareholders' equity less preferred stock | $ | 3,766,155 | $ | 2,770,453 | $ | 2,722,648 | |||||
Return on average common equity (annualized) | 10.98 | % | 14.25 | % | 14.62 | % | |||||
Adjusted return on average common equity (annualized) | 15.03 | 14.96 | 14.82 | ||||||||
Adjusted return on average tangible common equity (annualized) | 17.52 | 15.36 | 15.23 | ||||||||
Reconciliation of Non-GAAP Financial Measures, continued | ||||||||||||||||||||||||||
Table 14 - Reconciliation of Non-GAAP Financial Measures, continued | Table 14 - Reconciliation of Non-GAAP Financial Measures, continued | |||||||||||||||||||||||||
(dollars in thousands) | June 30, 2018 | March 31, 2018 | December 31, 2018 | June 30, 2017 | March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||||||||||||
Average core deposits | ||||||||||||||||||||||||||
Average total deposits | $ | 26,268,074 | $ | 25,788,073 | $ | 26,286,009 | $ | 24,991,708 | ||||||||||||||||||
Subtract: Average brokered deposits | (1,922,917 | ) | (1,951,910 | ) | (2,198,333 | ) | (1,379,559 | ) | ||||||||||||||||||
Average core deposits | $ | 24,345,157 | $ | 23,836,163 | $ | 24,087,676 | $ | 23,612,149 | ||||||||||||||||||
Period-end core deposits | ||||||||||||||||||||||||||
Total deposits | $ | 38,075,190 | $ | 26,720,322 | $ | 26,253,507 | ||||||||||||||||||||
Subtract: Brokered deposits | (2,709,004 | ) | (1,548,030 | ) | (2,006,577 | ) | ||||||||||||||||||||
Total core deposits | $ | 35,366,186 | $ | 25,172,292 | $ | 24,246,930 | ||||||||||||||||||||
Tangible common equity ratio | ||||||||||||||||||||||||||
Total assets | $ | 31,740,305 | $ | 31,501,028 | $ | 31,221,837 | $ | 30,687,966 | $ | 46,630,025 | $ | 32,669,192 | $ | 31,501,028 | ||||||||||||
Subtract: Goodwill | (57,315 | ) | (57,315 | ) | (57,315 | ) | (57,092 | ) | (485,000 | ) | (57,315 | ) | (57,315 | ) | ||||||||||||
Subtract: Other intangible assets, net | (10,458 | ) | (10,750 | ) | (11,254 | ) | (11,843 | ) | (74,683 | ) | (9,875 | ) | (10,750 | ) | ||||||||||||
Tangible assets | $ | 31,672,532 | $ | 31,432,963 | $ | 31,153,268 | $ | 30,619,031 | $ | 46,070,342 | $ | 32,602,002 | $ | 31,432,963 | ||||||||||||
Total shareholders' equity | $ | 3,167,694 | $ | 2,956,495 | $ | 2,961,566 | $ | 2,997,947 | $ | 4,597,753 | $ | 3,133,602 | $ | 2,956,495 | ||||||||||||
Subtract: Goodwill | (57,315 | ) | (57,315 | ) | (57,315 | ) | (57,092 | ) | (485,000 | ) | (57,315 | ) | (57,315 | ) | ||||||||||||
Subtract: Other intangible assets, net | (10,458 | ) | (10,750 | ) | (11,254 | ) | (11,843 | ) | (74,683 | ) | (9,875 | ) | (10,750 | ) | ||||||||||||
Subtract: Preferred Stock, no par value | (321,118 | ) | (125,980 | ) | (125,980 | ) | (125,980 | ) | (195,140 | ) | (195,140 | ) | (125,980 | ) | ||||||||||||
Tangible common equity | $ | 2,778,803 | $ | 2,762,450 | $ | 2,767,017 | $ | 2,803,032 | $ | 3,842,930 | $ | 2,871,272 | $ | 2,762,450 | ||||||||||||
Total shareholders' equity to total assets ratio | 9.98 | % | 9.39 | % | 9.49 | % | 9.77 | % | 9.86 | % | 9.59 | % | 9.39 | % | ||||||||||||
Tangible common equity ratio | 8.77 | 8.79 | 8.88 | 9.15 | 8.34 | 8.81 | 8.79 | |||||||||||||||||||
Common equity Tier 1 (CET1) ratio (fully phased-in) | ||||||||||||||||||||||||||
Common equity Tier 1 (CET1) | $ | 2,838,616 | ||||||||||||||||||||||||
Subtract: Adjustment related to capital components | (3,599 | ) | ||||||||||||||||||||||||
CET1 (fully phased-in) | $ | 2,835,017 | ||||||||||||||||||||||||
CET1 ratio (fully phased-in) | ||||||||||||||||||||||||||
CET1 | $ | 3,790,395 | ||||||||||||||||||||||||
Total risk-weighted assets | $ | 28,056,193 | 39,827,136 | |||||||||||||||||||||||
Total risk-weighted assets (fully phased-in) | $ | 28,182,637 | 39,994,724 | |||||||||||||||||||||||
Common equity Tier 1 (CET1) ratio | 10.12 | % | ||||||||||||||||||||||||
Common equity Tier 1 (CET1) ratio (fully phased-in) | 10.06 | |||||||||||||||||||||||||
CET1 ratio | 9.52 | % | ||||||||||||||||||||||||
CET1 ratio (fully phased-in) | 9.48 | |||||||||||||||||||||||||
Current expectation- increase (decrease) vs. 2017 | |||||||
(dollars in thousands) | 2017 | $ | % | ||||
2018 Expectation for adjusted non-interest income growth | |||||||
Total non-interest income, as reported | $ | 345,327 | $285 million-$290 million | (16%)-(18%) | |||
Subtract: Cabela's Transaction Fee | (75,000 | ) | |||||
Add: Investment securities losses, net | 289 | ||||||
Add: decrease in fair value of private equity investments, net | 3,093 | ||||||
Adjusted non-interest income | $ | 273,709 | $285 million-$290 million | 4%-6% | |||
Share Repurchases | ||||||||||||||||||||||||||||
(in thousands, except per share data) | Total Number of Shares Repurchased | Average Price Paid per Share(1) | Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | Total Number of Shares Repurchased | Average Price Paid per Share(1) | Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||
April 2018 | 22 | $ | 52.98 | 22 | $ | 122,112 | ||||||||||||||||||||||
May 2018 | 479 | 53.63 | 479 | 96,408 | ||||||||||||||||||||||||
June 2018 | 421 | 55.14 | 421 | 73,220 | ||||||||||||||||||||||||
January 2019 | 350 | $ | 36.18 | 350 | $ | 387,337 | ||||||||||||||||||||||
February 2019 | 7,020 | 37.51 | 7,020 | 123,985 | ||||||||||||||||||||||||
March 2019 | 1,115 | 39.45 | 1,115 | 80,002 | ||||||||||||||||||||||||
Total | 922 | $ | 54.30 | 922 | 8,485 | $ | 37.71 | 8,485 | ||||||||||||||||||||
Exhibit Number | Description | ||
2.1 | |||
3.1 | |||
3.2 | |||
3.3 | |||
3.4 | |||
3.5 | |||
3.6 | |||
31.1 | |||
31.2 | |||
32 | |||
101 | Interactive Data File | ||
SYNOVUS FINANCIAL CORP. | |||
By: | /s/ Kevin S. Blair | ||
Date | Kevin S. Blair | ||
Senior Executive Vice President, Chief Operating Officer and Interim Chief Financial Officer | |||
(Duly Authorized Officer and Principal Financial Officer) |